Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q2 2024 Earnings Presentation
37 slides from Fiera Capital Corporation Class A's earnings presentation, Aug 7, 2024
Slide 1: Q2 2024 Results
August 7, 2024 Q2 2024 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, outlook and trends and Fiera Capital Corporation’s
Slide 3: Conference Call Participants
Conference Call Participants Jean-Guy Desjardins Chairman of the Board and Global Chief Executive Officer Lucas Pontillo Executive Director and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q2 2024 Highlights Commercial Performance Investment Performance Private Markets Public Markets Financial Performance 4
Slide 5: Q2 2024 Highlights
Q2 2024 Highlights AUM in Q2 2024 decreased $6.3B quarter-over-quarter AUM - $158.9B Public Markets AUM 4.5% to $139.7B, primarily from outflows from PineStone sub-advised AUM and Fixed June 30, 2024 Income outflows from one large Financial Intermediary client in Canada, partly offset by positiv
Slide 6: AUM Overview – Q2 2024
AUM Overview – Q2 2024 QoQ ($B) Private Markets Public Markets AUM down $6.3B or 3.8% to $158.9B Favourable market impact of $1.5B more than offset by negative net organic growth of $7.8B, including $3.4B of pre- announced outflows by a large Canadian Financial Intermediary client and rebalancings
Slide 7: AUM Flows Across Platform – Q2 2024 YTD
AUM Flows Across Platform – Q2 2024 YTD Public Markets ($B) Public Markets excluding PineStone1 ($B) 1 PineStone1 ($B) Private Markets ($B) 1 Subtotals and totals may not reconcile due to rounding 1 Represents new mandates, lost mandates and net contributions from AUM sub-advised by PineStone 2 Mark
Slide 8: AUM Flows Across Geography – QoQ
AUM Flows Across Geography – QoQ Canada ($B) United States ($B) - EMEA ($B) Asia ($B) 13. 13. Subtotals and totals may not reconcile due to rounding 1 Market and Other includes the impact of market changes, income distributions and FX 2 Certain comparative figures have been reclassified to conform w
Slide 9: Commercial Highlights – Institutional and Financial Intermediaries
Commercial Highlights AUM Flows Base Management Fees In C$ billions In C$ millions Institutional Financial Intermediaries Public Markets Private Markets Subtotals and totals may not reconcile due to rounding 1 Market and Other includes the impact of market changes, income distributions and FX 2 Stra
Slide 10: Commercial Highlights – Private Wealth
Commercial Highlights – cont’d AUM Flows Base Management Fees In C$ billions In C$ millions Private Wealth Public Markets Private Markets Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. Q2 2024 Highlights I
Slide 11: Private Markets – Continuous growth trend
Private Markets – Continuous growth trend AUM1 ($B) LTM Total Revenues ($M) CAGR (+22%) 238.5 211.3 198.1 132.1 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 Subtotals and totals may not reconcile due to rounding. Revenue growth of Private Markets surpassing its AUM growth AUM up $5.2B, or 37%, since June
Slide 12: Investment Performance Update – Private Markets
Investment Performance Update – Private Markets1 Return Gross IRR Q2 2024 1-Year Select Private Markets Investment Strategies Since Since Absolute Absolute Inception2 Inception3 Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.34% - 1.78% 0.81% Fiera Real Estate Small Cap Industrial Fu
Slide 13: Investment Performance Update – Public Markets
Investment Performance Update – Public Markets1 Key Public Markets Q2 2024 1-Year 3-Year 5-year Investment Strategies Added Added Added Added Return Return Return Return Value Value Value Value Equity Investment Strategies Atlas Global Companies (4.40%) (8.18%) 9.13% (15.16%) 2.87% (7.60%) 11.66% (1
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts and accounts fo
Slide 15: Total Revenues
Total Revenues ($M) _ Subtotals and totals may not reconcile due to rounding. Q2 2024 Total Revenues of $165M, $5M, or 3%, compared to Q2 2023 Driven by higher base management fees in Private Markets, along with higher performance fees, earnings from JV and associates and other revenues Q2 2024
Slide 16: Public Markets Revenues
Public Markets Revenues ($M) - - Subtotals and totals may not reconcile due to rounding. Q2 2024 Total Revenues essentially flat from Q2 2023 Q2 2024 Base management fees of $103M, $4M compared to Q2 2023 Decrease from outflows due to lost PineStone Equity Mandates, partly offset by a higher fee
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) - - - - Subtotals and totals may not reconcile due to rounding. Q2 2024 Base management fees of $46M, $3M, or 7%, compared to Q2 2023 Increase due to higher average AUM from new subscriptions, primarily into Agriculture and Diversified Private Markets Solutions stra
Slide 18: Selling, General and Administrative Expenses (“SG&A”)
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues SG&A excluding share-based compensation (“SBC”) declined 2.6% from Q1 2024 Decrease primarily due to lower employee compensation costs and sub- 2.0% advisory fees, partly offset 2.6% by higher travel
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 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 (adjusted EPS) are not standardized measures p
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q2 2024 Adjusted net earnings1,2,3 ($M) $0.05 per share basic $0.23 per share basic $0.04 per share diluted $0.23 per share diluted 1 Attributable to the Company’s shareholders 2 Earnings before interest, taxes, depreciation and amortization
Slide 21: Per Share Metrics
Per Share Metrics ($ per share) 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) are not standardized measures prescribed by IFRS. These non-IFRS measures
Slide 22: LTM Free Cash Flow
LTM Free Cash Flow LTM Free Cash Flow1 relative to LTM dividends paid ($M) LTM Free Cash Flow1 increased to $121M from $45M in Q2 2023 Significant year-over- year improvement as one-time outflows in 2022 begin to roll off 1 LTM Free Cash Flow is not a standardized measure prescribed by Internati
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Total Debt vs. Net Debt1,5 ($M) Funded Debt2 ($M) Leverage Ratios 1 Represents the carrying amounts of long-term debt and debentures, net of cash and cash equivalents, as reported in the statement of financial position in the consolidated financial statements 2 Represents g
Slide 24: Progress on Our Strategy in 2024
Progress on Our Strategy in 2024 Private Markets AUM 3-year CAGR of 11% and LTM revenue 3-year CAGR of 22% New subscriptions of $0.4B in Q2 2024 and $1.0B YTD; $500M capital deployed in Q2 2024 Growing Private Markets Committed, undeployed capital of $1.3B provides strong pipeline for future oppor
Slide 25: Appendix – Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 26: 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 27: 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 Sustainability Solving for specific n
Slide 28: 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 29: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by Total Assets) AUM C$158.9 billion1 SYMBOL (TSX) FSZ.TO 3rd 70th 164 th MARKET CAP C$824.0 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global p
Slide 30: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1 Data presented excludes dispositions. The Company's strategic activity during fiscal 2021 included various dispositions. For comparative purposes, the Company has provided information on the impact of th
Slide 31: AUM by Segments
AUM by Segments AUM as at June 30, 2024 – $158.9B By Geography By Distribution Channel By Asset Class Canada 67% Institutional 55% Public Markets – 48% Equity U.S. 22% Financial Intermediaries 36% Public Markets – 40% EMEA 8% Private Wealth 9% Fixed income Private markets 12% Asia 3% Liquid alternat
Slide 32: Revenue Diversification
Revenue Diversification Q2 2024 Total Revenues – $164.8M By Geography By Distribution Channel By Asset Class2 Canada 63% Institutional 50% Equity 56% U.S. 21% Financial Intermediaries 29% Fixed income 13% EMEA 12% Private wealth 16% Private markets 30% Asia 4% Other1 5% Liquid alternatives <1% and o
Slide 33: Expanding our Global Footprint
Expanding our Global Footprint 856 employees INCLUDING SOME 230 INVESTMENT PROFESSIONALS Calgary Halifax London The Hague Toronto Montreal Frankfurt Dayton Boston Zurich New York Hong Kong Abu Dhabi Singapore As at June 30, 2024 33 33
Slide 34: Our Sustainable Investing Journey & Commitments
Our Sustainable Investing Journey & Commitments We recognize and adhere to several responsible business codes of conduct, along with internationally recognized standards for due diligence and reporting. 34
Slide 35: 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 $6.6B Real Estate $76.2B1 Small Cap, Emerging and Frontier Strategies $5.2B Private Debt Canadian Active Universe Strategies $139.7B LD
Slide 36: 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
Slide 37: Thank You
Thank You Investor Relations contact: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878