Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q1 2022 Earnings Presentation
40 slides from Fiera Capital Corporation Class A's earnings presentation, May 4, 2022
Slide 1: Q1 2022 Results
<> FIERACAPITAL May 4, 2022 Q1 2022 Results
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements relating to future events or future performance and reflecting management’s expectations or beliefs regarding future events including business and economic conditions and Fiera Capital’s growth, results of operations, p
Slide 3: Conference Call Participants
Conference Call Participants Jean-Philippe Lemay Global President and Chief Executive Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q1 2022 Highlights Distribution Performance Investment Platform ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q1 2022 Highlights
Q1 2022 Highlights AUM $13.8B decrease ( 7.3%) in Q1 2022 $174.5B as at March 31, 2022 $1.6B increase ( 0.9%) over the last twelve months Gross new mandates of $1.9 billion expected to generate $14.9 million in annualized based Distribution management fees achieved in Q1 2022 Performance ▪ Private
Slide 6: AUM Overview
AUM Overview Q1 2022 Flows ($B) ▪ AUM down $13.8B, or 7.3% ▪ Attributable to unfavourable market depreciation of $13.3B Y/Y Flows ($B) ▪ AUM up $1.6B, or 0.9% ▪ Public markets AUM down 1.1% year-on-year ▪ Private markets AUM up 24.3% year-on-year 1 Subtotals and totals may not reconcile due to round
Slide 7: AUM Flows Across Investment Platforms and Distribution Channels in Q1 2022
AUM Flows Across Investment Platforms and Distribution Channels in Q1 2022 Institutional ($B) Private Markets ($B) Financial Intermediaries ($B) Public Markets ($B) Private Wealth ($B) Distribution Channel AUM ▪ Institutional $7.0B, or -7.3% ▪ Financial Intermediaries 6.0B, or -7.7% ▪ Private We
Slide 8: Organic Growth Update: Not All About AUM
Organic Growth Update Not All About AUM Private Markets strategies generating growth and contributing to increase in total revenues Q1 2022 AUM Organic Growth Gross Net Private Markets ($B) 1.2 0.6 --- % change in AUM 7.2% 3.8% Public Markets ($B) 0.7 (1.1) --- % change in AUM 0.4% (0.6%) AUM Organi
Slide 9: Institutional Highlights
Institutional Highlights Q1 2022 Highlights AUM Net Organic Flow1 In C$ billions Canada ▪ A strong gross sales performance driven by Private Markets strategies was offset by Public Markets outflows resulting from client rebalancings and annuitization of a large LDI mandate U.S. ▪ Public Markets outf
Slide 10: Financial Intermediaries Highlights
Financial Intermediaries Highlights Q1 2022 Highlights AUM Net Organic Flow1 In C$ billions Canada ▪ Flows into Private Markets strategies from two recent distribution partnerships sustained in Q1 and are set to continue to accelerate U.S. ▪ Positive flows for our Growth equity strategy are evidence
Slide 11: Private Wealth Highlights
Private Wealth Highlights Q1 2022 Highlights AUM Net Organic Flow1 In C$ billions Canada ▪ Strong start to 2022 with critical new client wins driven by Private Markets strategies offering which delivers stable returns becoming even more compelling in a rising interest rate, inflationary and volatile
Slide 12: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth AUM1 ($B) LTM Total Revenues1 ($M) Revenue growth of Private Markets surpassing its AUM growth AUM up $8.5B, or 101%, since March 31, 2019 → 3-yr CAGR of 26.2% $1.1B of subscriptions received in Q1 2022 and $0.7B deployed Committed, undeployed capital of $2.0B
Slide 13: Investment Performance Update: Select Private Markets Investment Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q1 2022 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 9.77% - 6.81% 22.87% Fiera Real Estate Small Cap Industrial Fund L.P. 15.77% - 7.92% 29.62% Inf
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts, private altern
Slide 15: Investment Performance Update
Investment Performance Update Key Public Market Q1 2022 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies (15.53%) (9.31%) 5.77% (3.67%) 16.52% 4.09% Global Equity (10.70%) (4.48%) 11.19% 1.75% 14.70% 2.2
Slide 16: Total Revenues
Total Revenues ($M) Q1 2022 Total Revenues of $172.3M, $22.2M, or 14.8%, compared to Q1 2021 Q1 2022 Base Management fees of $159.3M, $16.8M, or 11.8%, compared to Q1 2021 ▪ Base Management Fees increased across all distribution channels Q1 2022 Performance fees of $3.4M, $2.0M, or 142.9%, compar
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) Q1 2022 Base management fees of $36.0M, $8.7M, or 31.9%, compared to Q1 2021 ▪ Driven primarily by favorable asset class mix and market appreciation in the real estate, infrastructure and private debt strategies within the Institutional and Private Wealth distribution
Slide 18: Public Markets Revenues
Public Markets Revenues ($M) Q1 2022 Base management fees of $123.3M, $8.1M, or 7.0%, compared to Q1 2021 ▪ Driven primarily by higher average AUM due to favourable market impacts and an increase in net organic growth in Private Wealth Q1 2022 Performance fees of $1.2M, $0.8M, compared to Q1 2021
Slide 19: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (“SG&A”) ($M) SG&A Total Revenues ▪ Excluding share-based compensation, SG&A increased by $6.9M, or 5.8%, in Q1 2022 vs Q1 2020 6.6% • Primarily relating to higher sub-advisory fees 5.8% due to re-categorization following StonePine arrangement ($M) SG
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q1 2022 Adjusted net earnings1,2 ($M) $0.03 per share basic $0.33 per share basic $0.03 diluted $0.32 diluted 1) Attributable to Company shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA
Slide 21: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 LTM Adjusted EBITDA Margin Trending Above 30% Quarterly Last Twelve Months 1) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share
Slide 22: LTM Free Cash Flow
LTM Free Cash Flow LTM free cash flow relative to LTM dividend paid ($M) ▪ LTM free cash flow of $145.3m in Q1 2022, compared to $101.6m in Q1 2021 ▪ Current quarter LTM dividends paid represents 60% of LTM free cash flow Note: LTM Free Cash Flow is defined as net cash generated by or used in operat
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Funded Debt Ratio at 2.18x Net Debt1 ($M) Funded Debt2 ($M) Leverage Ratios Net Debt3 Funded Debt4 1. Represents the carrying amounts of long-term debt, net and convertible debt, net, net of cash and cash equivalents, as reported in the condensed consolidated financial stat
Slide 24: Returning Value to Shareholders
Returning Value to Shareholders $34M Returned to Shareholders in Q1 2022 In Q1 2022, 3.56M class A subordinate voting shares (“Class A Shares”) Normal Course Issuer repurchased from Natixis Investment Managers for a repurchase price, Bid (“NCIB”) net of transaction fee, of $34.9M $21.8M in dividends
Slide 25: Q1 2022 Adjusted EPS Up 10.8% Compared to Q1 2021
Q1 2022 Adjusted EPS Up 10.8% Compared to Q1 2021 ($ per share) 1 1) Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (Adjusted EPS) as well as non-cash items are not stan
Slide 26: Progress on Our Strategy in 2022
Progress on Our Strategy in 2022 Private Markets AUM of $16.9B as at March 31, 2022 (3-yr CAGR of 26.2%) Solid conversion of capital from committed to deployed; continued fundraising Growing Private Markets momentum $1.1B in new subscriptions received in Q1 2022; $0.7B deployed Challenging equity an
Slide 27: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 28: Fiera Capital: Statement of Purpose
Fiera Capital Statement of Purpose World-class portfolio of high conviction, sophisticated investment capabilities: We are committed to delivering investment excellence across our range of public and private market strategies, which are underpinned by independence of perspective, disciplined process
Slide 29: Progressing our Mission and Purpose
Progressing our Mission and Purpose “We are passionate about creating innovative investment solutions by being efficient allocators of capital with the objective of fostering sustainable prosperity for all our stakeholders.” EFFICIENT CAPITAL ALLOCATOR Solutions ESG Solving for specific needs of our
Slide 30: What Being an Efficient Allocator of Capital Means for Fiera Capital
What Being an Efficient Allocator of Capital Means for Fiera Capital We allocate capital efficiently … … To construct optimized portfolios to deliver on client outcomes. 1 Our focus is on delivering the specific risk/return outcome the client needs with the highest probability of success. … To offer
Slide 31: Fiera Capital: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$174.5 billion1 SYMBOL (TSX) FSZ.TO 3rd 64th 141 st MARKET CAP C$1.06 billion4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence an
Slide 32: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1) Dispositions include: the sale of the rights to manage the retail mutual funds of Fiera Investments LP in June 2020; the sale of WGAM in December 2020; the sale of Bel Air in March 2021; and the termination
Slide 33: Expanding our Global Footprint
Expanding our Global Footprint 840 employees INCLUDING SOME 235 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at March 31, 2022 33 33
Slide 34: Revenue Diversification
Revenue Diversification Q1 2022 Total Revenues – $172.3M By Geography By Distribution Channel1 By Asset Class2 Canada 60% Institutional 53% Equity 63% U.S. 25% Financial intermediaries 32% Fixed income 14% Europe and other 15% Private wealth 15% Private markets 23% Liquid alternatives <0% and other
Slide 35: Underpinned by a Diversified Asset Base
Underpinned by a Diversified Asset Base AUM as at March 31, 2022 – $174.5B By Geography By Distribution Channel By Asset Class Canada 67% Institutional 51% Public Markets – 50% Equity U.S. 22% Financial intermediaries 41% Public Markets – 40% Europe and other 11% Private wealth 8% Fixed income Priva
Slide 36: Our Responsible Investment Journey
Our Responsible Investment Journey Further enhancement Foundation & Promotion Further Promotion & Transparency & & creation of new Increasing the capabilities Advocacy solutions 2002 2009 2014 2016 2017 2018 2019 2020 2021 2022 ▪ Established Proxy Voting Policy prior to the ▪ Subscribed to MSCI ESG
Slide 37: Breadth of Innovative Investment Solutions
Breadth of Innovative Investment Solutions ASSET ALLOCATION BALANCED MANDATES OVERLAY STRATEGIES ADVISORY Public Markets Private Markets Large Cap Equity strategies $6.1B Real Estate $87.8B1 Small Cap, Emerging and Frontier Strategies $5.5B Private Debt $157.6B Canadian Active Universe Strategies $1
Slide 38: Glossary
Glossary AUM Organic Flows: Gross - Represents new mandates in Public Markets, and new subscriptions, including committed, undeployed capital in Private Markets Net - Represents the sum of: new mandates in Public Markets; new subscriptions, including committed, undeployed capital in Private Markets;
Slide 39: Thank You
Thank You Investor Relations contacts: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878 39
Slide 40: Important Disclosures
Important Disclosures Fiera Capital Corporation is a global asset management firm with affiliates in various jurisdictions (collectively, “Fiera Capital”). The information and opinions expressed herein are provided for informational purposes only. It is subject to change and should not be relied upo