Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q1 2019 Earnings Presentation
27 slides from Fiera Capital Corporation Class A's earnings presentation, May 9, 2019
Slide 1: Q1 2019 Results
May 9, 2019 Q1 2019 Results JEAN-GUY DESJARDINS VINCENT DUHAMEL LUCAS PONTILLO Chairman of the Board and Global President and Executive Vice President and Chief Executive Officer Chief Operating Officer Global Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera Capital") objectives, strategies
Slide 3: Strategic and Long-Term Partnership with Natixis
Strategic and Long-Term Partnership with Natixis1 DISTRIBUTION AGREEMENT STRATEGIC PARTNERSHIP • Fiera Capital: Natixis’ preferred Canadian • Natixis acquires an 11.0% stake in Fiera distribution platform Capital (10.68M Class A shares2) o Fiera Capital Canadian clients to get • Natixis President an
Slide 4: Q1 2019 Highlights
Q1 2019 Highlights AUM Growth (in $ millions) Q1 2019 equity market rebound $1.6B in gross new clients Lost mandates mostly U.S. and Canadian fixed income mandates Unfavorable FX impact March 22, 2019: announced the acquisition of Integrated Asset Management ▪ Adds complementary strategies to Fiera
Slide 5: Operations Overview
Operations Overview Launch of 8 new investment strategies in Canada Winning mandates in the U.S. from high-quality clients across asset classes Bel Air AUM up almost $600M quarter over quarter New mandates funded in Europe Closing of Palmer Capital, the new UK arm of Fiera Properties 5
Slide 6: Private Alternative Investments
Private Alternative Investments Total alternative PRIVATE LIQUID investment strategies as 1 at March 31, 2019 1 $11.8B (in $ billions) Q1 HIGHLIGHTS Fiera Infrastructure ▪ Long-term partnership announced with EllisDon; 2 projects closed and a 3rd expected to close in Q2 Fiera Properties ▪ Closed Pal
Slide 7: IFRS 16 – Lease Accounting Standard
IFRS 16 – Lease Accounting Standard (January 1, 2019) Leases are no longer treated as operating expenses ▪ Positive impact on EBITDA1,2 Present value of future payments are now recorded on the balance sheet as: ▪ Right-of-use asset › Depreciated over time using straight-line depreciation ▪ Right-of-
Slide 8: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1,2 and Adjusted EBITDA Margin1,2 Adoption of IFRS 163 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
Slide 9: Adjusted EBITDA Q1 2019 vs Q1 2018
Adjusted EBITDA1,2 (in $ millions) Q1 2019 vs Q1 2018 Revenues up 19% 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
Slide 10: Adjusted EBITDA Q1 2019 vs Q4 2018
Adjusted EBITDA1, 2 (in $ millions) Q1 2019 vs Q4 2018 Performance fees typically earned in Q2 and Q4 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
Slide 11: Average BPS Evolution vs AUM
Average BPS Evolution vs AUM $B BPS 150 143.5 144.9 40 139.4 136.7 128.9 131.4 125.9 123.0 125 36.0 36.4 34.8 34.2 35 100 33.3 32.6 31.5 75 30.4 30 50 Q1 2019 average: 36.4 bps 25 25 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 AUM - End of Period ($ Billion) Average BPS - LTM Not
Slide 12: AUM and Revenues Breakdown – by Geography
AUM and Revenues Breakdown – by Geography AUM as of March 31, 2019 Revenues Q1 2019 Canada 57% Canada 50% U.S. 32% U.S. 36% Europe and other 11% Europe and other 14% 50% of 2018 revenues were generated outside Canada, compared to 30% in 2015 12
Slide 13: Investment Performance Update
INVESTMENT PERFORMANCE UPDATE FIXED INCOME ▪ IFI1 team delivered strong performance in Q1 ▪ ASFI2 continues to deliver positive value-added over 1, 3 and 5 years BALANCED MANDATES ▪ Teams’ overweight position in Canadian equities and emerging markets and underweight position in bonds benefited balan
Slide 14: Outlook
Outlook Outlook for global growth remains reasonably bright 2022 Strategic Plan: Establish Fiera Capital as a top-tier, multi-strategy asset manager ▪ Plan rooted in diversification and scalability Continue to pursue growth organically and through M&A Deliver alpha through customized solutions New i
Slide 15: Question Period
Question Period 15
Slide 16: Appendix A: Overview of the Natixis Transaction
Appendix A OVERVIEW OF THE NATIXIS TRANSACTION 16
Slide 17: Overview of the Natixis Transaction
Overview of the Natixis Transaction FIERA CAPITAL STRATEGIC PARTNERS Total Class A Shares1 Total Class Total Class B shares2 A+B (in millions) Before Bought/sold Cancelled After shares (As at May 8, 2019) (As at May 9, 2019) (As at May 9, 2019) (As at May 9, 2019) Fiera L.P. 6.3 - - 6.3 19.43 25.7 N
Slide 18: Appendix B: Additional Financial Information
Appendix B ADDITIONAL FINANCIAL INFORMATION 18
Slide 19: Year-Over-Year AUM
YEAR-OVER-YEAR AUM (in $ millions) CGOV acquisition (~$5B) Clearwater acquisition (~$1.8B) 19
Slide 20: LTM Adjusted EBITDA and LTM Adjusted EBITDA Margin
LTM Adjusted EBITDA1,2 and LTM Adjusted EBITDA Margin1,2 Adoption of IFRS 163 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
Slide 21: Revenue Trend – Quarterly & Last Twelve Months
Revenue Trend – Quarterly & Last Twelve Months $M $M 540.3 563.1 180 495.4 525.4 600 459.1 478.5 412.8 438.1 500 160 157.0 400 142.0 142.8 140 137.1 300 126.2 200 120.0 120 100 109.3 107.1 100 0 -100 80 -200 60 -300 -400 40 -500 -600 20 -700 0 -800 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-
Slide 22: Appendix C: Investment Performance
Appendix C INVESTMENT PERFORMANCE 22
Slide 23: Investment Performance (March 31, 2019) – Fixed Income and Balanced
Investment Performance (March 31, 2019) Traditional Strategies – Fixed Income and Balanced Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Active and Strategic Fixed Income - Active 5.27 0.
Slide 24: Investment Performance (March 31, 2019) – Equity
Investment Performance (March 31, 2019) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION YEAR NAME Return (%) Added Value (%) Return (%) Added Value (%) Equity Investment Strategies Canadian Equity 13.31 5.20 9.30 3.86 2013 S&P/TSX Comp
Slide 25: Investment Performance (March 31, 2019) – Alternative Strategies
Investment Performance (March 31, 2019) Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) North American Market Neutral Fund 2.84 4.04 2007 Absolute Return Long / Short Equity Fund 3.86 7.78 2010 Absolute Return D
Slide 26: Mariem Elsayed, Director, Investor Relations and Public Affairs
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 26
Slide 27: fieracapital.com
fieracapital.com