Altus Group Limited · TSX:AIF
Altus — Investor Presentation (June 2017)
21 slides from Altus's investor presentation, June 2017
Slide 1: Investor Presentation
Investor Presentation CONNECTING THE GLOBAL REAL ESTATE MARKETPLACE TSX: AIF June 2017
Slide 2: Forward Looking Statements
Forward Looking Statements Certain information in this presentation may constitute “forward-looking information” within the meaning of applicable securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking informati
Slide 3: Altus Group at a Glance
Altus Group at a Glance CO NNE CTIN G THE GLO BA L CO MME RICA L REA L E S TA TE MA RKE TP LA CE Helping clients maximize the value of their real estate assets & portfolios through: Software & data solutions for CRE Independent technology-enabled CRE investment management professional services 3 alt
Slide 4: Uniquely Positioned Market Leader
Uniquely Positioned Market Leader Global Blue Chip Client Base • Unmatched client base in CRE industry • Relationships with top 50 CRE firms • +5,500 ARGUS software clients • 23/24 open-end ODCE funds use our benchmarking & attribution analysis data platforms Altus Analytics Existing Market Standard
Slide 5: Connecting the Global CRE Market
Connecting the Global CRE Market Providing Data for Visibility and Insight to Global CRE Market Understand How Assets Stack Up APPRAISAL MANAGEMENT Make Informed Decisions Collect Property Data in the Cloud Data Flow ALTUS CLIENT PLATFORM Single point of contact / view of assets – on a common web &
Slide 6: Growing Altus Analytics Revenues
Growing Altus Analytics Revenues 74% of Altus Analytics are Recurring $500 $443 M $450 $416 M $151 M $400 $126 M $370 M $350 $324 M $91 M Q1 2017 y/y Revenues (C$ M) $300 $71 M $223 M $247 M Revenue Growth $250 $194 M $182 M Altus Analytics $39.2 M 6.8% $200 $150 CRE Consulting $57.7 M (1.2%) $100 G
Slide 7: The Institutionalization of Commercial Real Estate
The Institutionalization of Commercial Real Estate Real estate investment allocation expected to reach 10.3% in 2017 Pension funds are leading institutional investors in invested real estate (up from 9.6% in 2015).1 assets.3 Global, investible commercial real estate market estimated to have reached
Slide 8: Information Services Model
Information Services Model Moving Towards Analytics Applications & Services Characteristics • Business models characterized by high margins, operating leverage, low capex and strong free cash flow • Proliferation of data and low computing costs driving demand for Big Data Analytics • Strong demand f
Slide 9: Altus Analytics Growth Drivers
Altus Analytics Growth Drivers ARGUS Software Appraisal Management • Same customer revenue growth by: • Customers adding more assets on platform & increasing - Converting legacy DCF & ValCap users to ARGUS Enterprise (AE) frequency of valuations (pricing based on # of assets on platform and frequenc
Slide 10: Altus Analytics Growth Strategy
Altus Analytics Growth Strategy SET THE STANDARD GLOBALLY Wave 1 Wave 2 Wave 3 North America DCF Upgrade UK ValCap Upgrade Go Global 80% Committed Continental Europe Enterprise Agreements Focus on Mid Market UPSELL Same Client Application Sale & SME 60% Repeat Business Upgrade Sale Enterprise Sale G
Slide 11: Technology-Enabled Expert Services
Technology-Enabled Expert Services Modernization Through Technology • Leading provider of independent CRE advisory services • Services provide access to robust CRE data • Unparalleled insights and efficiencies provided by Altus Analytics • Pursuing investments in technology to leverage extensive pro
Slide 12: Financial Strength
Financial Strength Strong Cash Prudent Strong Financial Financial Strong Generation Financial Growth Flexibility Shareholder Management Returns 40% YoY increase to DSO as at March 31, 8% 5-year Revenue $38.9 M cash position 60% share price $67.2 m in cash from 2017 was 74 days CAGR up to 2016 increa
Slide 13: Appendix
CONNECTING THE GLOBAL REAL ESTATE MARKETPLACE TSX: AIF Appendix altusgroup.com For investor inquiries, please contact: Camilla Bartosiewicz Vice President, Investor Relations camilla.bartosiewicz@altusgroup.com 416-641-9773
Slide 14: Capital Markets Stats
Capital Markets Stats SECURITY SYMBOLS TSX: AIF, ANALYST COVERAGE MARKET CAPITALIZATION $1.1 Billion BMO, Stephen MacLeod SHARES OUTSTANDING 38.1 M Canaccord, Yuri Lynk Cormark, Maggie MacDougall Included in the S&P/TSX Composite RECENT SHARE PRICE $30.32 (June 2) CIBC, Stephanie Price Index and the
Slide 15: Financial Performance By Business Segment
Financial Performance By Business Segment In thousands of Cdn. dollars Q1 2017 Q1 2016 % change 2016 2015 % change ALTUS ANALYTICS Recurring (data & software subscriptions, maintenance) 29,174 27,665 5.5% 111,928 90,735 23.4% Non-recurring (licenses & services) 10,010 9,019 11.0% 39,552 35,236 12.2%
Slide 16: Business Segment Performance
Business Segment Performance INVESTOR RELATIONS 2016 YoY Chg. Evolving Financial Profile ALTUS ANALYTICS Revenue $151.5 20.2% Adj. EBITDA $41.0 35.3% $500 Margin 27.1% $443 M $450 $416 M $45 M $400 $370 M $67 M CRE CONSULTING $247 M $350 $85 M Revenues (C$ M) $300 $223 M Revenue $247.3 10.3% $250 $1
Slide 17: Revenue Streams
Revenue Streams ALTUS ANALYTICS Competitive Strengths: • ARGUS software tools for CRE portfolio & investment • Industry valuation/ transactions standard (ARGUS Enterprise & DCF) management - for asset valuation, portfolio management, 74% of Altus • Global footprint budgeting, forecasting, sensitivit
Slide 18: Management Committee
Management Committee ROBERT COURTEAU ANGELO BARTOLINI LIANA TURRIN COLIN JOHNSTON TERRY BISHOP MICHAEL COMMONS Chief Executive Officer Chief Financial Officer General Counsel and President, Research, President, Property Senior Executive Vice Corporate Secretary Valuation & Advisory Tax, Canada Presi
Slide 19: Board of Directors
Board of Directors RAYMOND MIKULICH, CHAIRMAN Mr. Mikulich currently serves as the Managing Partner and Chief Investment Officer for Ridgeline Capital Group, LLC, a real estate investment and asset management company, and the Chief Executive Officer of HomeLPC, LLC, a real estate investment company
Slide 20: Board of Directors
Board of Directors ERIC W. SLAVENS Mr. Slavens currently serves on the boards of NexGen Financial Corporation, an asset management company, Effort Trust Company, a financial services, real estate and asset management company, and Titanium Corporation Inc., an oil sands services and technology compan
Slide 21: Board of Directors
Board of Directors JANET WOODRUFF Ms. Woodruff is an experienced corporate director and senior executive with over 30 years of business experience in the energy, transportation and health sectors, including her most recent role as acting Chief Executive Officer of Transportation Investment Corporati