Slide 1: Q2 2023 Earnings Call & Webcast
Q2 2023 Earnings Call & Webcast TSX: AIF | August 10, 2023
Slide 2: Forward-looking information & statements
Forward-looking information & statements Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in Management’s Discussion and Analysis for the period ended June 30, 2023 (‘MD&A’), other
Slide 3: Non-GAAP and other measures
Non-GAAP and other measures We use certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”).
Slide 4: Financial update
Financial update Pawan Chhabra Chief Financial Officer Q2 2023
Slide 5: Consolidated Q2 2023 performance
Consolidated Q2 2023 performance Q2 Q2 Year-over-year change $ CAD Millions, except EPS figures 2023 2022 As Reported CC* Revenues $205.2 $206.4 0.6% 4.1% Results reflect Profit (Loss) $11.9 $12.5 5.1% expected -$33.2M jurisdictional reset of Basic EPS $0.26 $0.28 7.1% UK tax valuation list Diluted
Slide 6: Growing revenues & expanding margins at Analytics
Growing revenues & expanding margins at Analytics Q2 2023: C$M As reported CC* $120 30% 26.9% 21.4% 23.8% Revenue $99.7M 21.4% 15.5% 23.9% $100 22.6% 25% 18.8% 18.0% 14.0% 16.8% 18.8% $80 18.0% 14.8% 20% Recurring 15.0% Revenue* $88.8M 25.2% 19.0% 11.2% $60 15% $40 10% Adjusted EBITDA $23.8M 72.8% 5
Slide 7: Growing Analytics recurring revenue base
Growing Analytics recurring revenue base C$ (M) C$M Recurring Revenue* $100 $89 Q2 2023: $90 $86 $85 $80 $77 19.0% $71 $70 $68 $60 $60 $55 $50 $50 (y/y, CC*) $43 $41 $43 $43 $40 $40 $30 89% of Analytics $20 revenues are recurring $10 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2020 2
Slide 8: Expanding Analytics margins
Expanding Analytics margins Adjusted EBITDA margin* Q2 2023: 30% 25% 23.9% 26.9% 410 bps y/y 23.8% 23.8% Adjusted EBITDA margin* 20% 20.7% 21.4% 700 bps y/y 16.6% 16.8% 15% YTD 2023: 14.0% 22.6% 10% 5% Adjusted EBITDA margin* 0% 720 bps y/y FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2
Slide 9: Property Tax performance
Property Tax performance Q2 2023 results reflect the reset of the UK annuity billings: Q2 2023: C$M $100 50% 45.8% 45.0% As reported CC* 44.2% $90 45% $80 37.6% 40% Revenue $75.1M 19.7% 22.4% 34.7% 31.8% $70 35% Revenue growth rate 30.3% adjusted to exclude UK $60 29.2% 30% annuity billings from 202
Slide 10: Appraisals & Development Advisory performance
Appraisals & Development Advisory performance Q2 2023: C$M $35 17.4% 25% 14.5% 19.5% 14.6% 10.0% 10.9% As reported CC* 10.1% 13.9% $30 10.3% 12.1% 16.7% 13.7% 9.9% 13.7% 20% $25 Revenue $30.5M 1.2% 1.0% $20 15% Adjusted $15 EBITDA $3.3M 25.9% 25.3% 10% $10 5% Adjusted $5 EBITDA 10.9% 370 bps margin*
Slide 11: Healthy balance sheet enables continued investment in growth
Healthy balance sheet enables continued investment in growth CASH FUNDED DEBT TO $43.1 M POSITION 2.19x EBITDA RATIO BANK NET DEBT TO $335.8 M DEBT 2.10x ADJUSTED EBITDA RATIO* 11 * Non-GAAP and other financial measure | All figures are as at June 20, 2023
Slide 12: Operational update
Operational update Jim Hannon Chief Executive Officer Q2 2023
Slide 13: Steady ARGUS Cloud adoption
Steady ARGUS Cloud adoption Cloud Adoption Rate* 80% 70% 70% 67% 64% 60% 55% 52% 50% 42% 44% 40% 29% 30% 26% 22% 20% 14% 8% 10% 10% 6% 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 13 * Non-GAAP and other financial measure
Slide 14: Adding new bookings at Analytics
Adding new bookings at Analytics C$M New Bookings* Q2 2023: C$ (M) $40 $35 $31.1 $34.2 total 0.4% total New Bookings* $28.0 $30 total $26.8 (y/y, CC*) total $24.6 $23.5 total $25 $21.3 $22.1 total $21.4 total $20.5 total total total $20 3.4% $20.8 $15.0 $14.9 $19.1 $18.4 total total $17.2 $17.0 $17.
Slide 15: Question period
Question period For additional inquiries please email IR@altusgroup.com
Slide 16: Appendix
a AltusGroup Appendix
Slide 17: Well positioned for sustained growth in 2023
Well positioned for sustained growth in 2023 BUSINESS OUTLOOK FY 2023 PERFORMANCE EXPECTATIONS CONSOLIDATED • Sustained revenue & Adjusted EBITDA* growth ANALYTICS • Double-digit revenue growth and expanded Adjusted EBITDA margin* • U.K. annuity revenue stream resets in 2023; cyclicality to cause re
Slide 18: Resilient business model provides stability
Resilient business model provides stability Appraisals & Development Advisory 15% APAC, 4% Canada, Trusted by the largest CRE leaders EMEA, Diversified 22% 24% Equity Debt Valuers & Banks revenue base Property Tax Analytics 48% Investors Investors Appraisers 37% Developers Corporates Brokers U.S., 5
Slide 19: Selected financial information
Selected financial information Selected Financial Information Three months ended June 30, Six months ended June 30, In thousands of dollars, except for per share amounts 2023 2022 2023 2022 Revenues $ 205,213 $ 206,414 $ 396,037 $ 373,998 Canada 24% 24% 28% 27% U.S. 50% 39% 47% 41% EMEA 22% 33% 21%
Slide 20: Reportable segment performance
Reportable segment performance Revenues Three months ended June 30, Six months ended June 30, Constant Constant In thousands of dollars 2023 2022 % Change Currency 2023 2022 % Change Currency % Change % Change Analytics $ 99,740 $ 82,133 21.4% 15.5% $ 194,385 $ 162,443 19.7% 13.9% Property Tax 75,12
Slide 21: Reconciliation of Profit (Loss) to Adjusted EBITDA and Adjusted Earnings
Reconciliation of Profit (Loss) to Adjusted EBITDA* and Adjusted Earnings Three months ended June 30, Six months ended June 30, (1)Management uses the non-GAAP occupancy costs calculated on a similar basis prior to the adoption of IFRS 16 when analyzing In thousands of dollars, except for per share
Slide 22: Debt, leverage & liquidity
Debt, leverage & liquidity Funded debt to Adjusted Net debt to Adjusted Quarter end Cash position Total bank debt EBITDA ratio EBITDA ratio* Liquidity as at June 30, 2023: Q2 2023 $43.1 M $335.8 M 2.19x 2.10x Cash $43.1 M Q1 2023 $42.9 M $350.1 M 2.21x 2.13x Q4 2022 $55.3 M $319.6 M 2.13x 1.96x Bank
Slide 23: Summary of consolidated quarterly results
Summary of consolidated quarterly results 2023 2022 2021 In thousands of dollars, Jun 30 Mar 31 Fiscal 2022 Dec 31 Sep 30 Jun 30 Mar 31 Fiscal 2021 Dec 31 Sep 30 except for per share amounts Results of Operations Revenues $ 205,213 $ 190,824 $ 735,451 $ 183,762 $ 177,691 $ 206,414 $ 167,584 $ 625,38
Slide 24: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Altus Group uses certain non-GAAP financial measures, non-GAAP ratios, total of segments measures, capital management measures, and supplementary and other financial measures as defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disc
Slide 25: Non-GAAP and other measures definitions
Non-GAAP and other measures definitions Net debt to Adjusted EBITDA leverage ratio: Altus Group uses Net debt to Adjusted EBITDA leverage ratio as a measure of its ability to service debt and other long-term obligations. How it’s calculated: Net debt (total borrowings less cash and cash equivalents,