AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q1 2013 Earnings Presentation
14 slides from AGF Management Limited Class B's earnings presentation, Mar 27, 2013
Slide 1: AGF Management Limited Earnings Conference Call First Quarter 2013
MARCH 2013 AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL FIRST QUARTER – 2013 MARCH 27, 2013
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of March 27, 2013. Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information within the meaning of securitie
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Robert J. Bogart, Executive Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
TODAY’S DISCUSSION • Highlights of the 1st Quarter • Business Updates – Investment Management – Retail Business – Institutional Business • Financial Results • Capital & Liquidity • Priorities Exiting Q1 2013 4
Slide 5: Q1 2013 Highlights
Q1 2013 HIGHLIGHTS Q1-2013 Ind str gross flo Industry flows s were ere strong and reflected increased acti activity it in eq equities ities • AUM was flat over the quarter at $39B • Gross flows of $1.3B in Q1-13 as compared to $1.4B a year ago • Investment performance weakened slightly over the quar
Slide 6: Investment Performance
INVESTMENT PERFORMANCE AGF funds gave back some performance in Q1-13 – overall trend is moving in the right direction as this remains our #1 priority 1-yr Performance (% of Funds Above Median) • Year-over-year trajectory Y t j t on a 60% 3 Performance 3-yr P f (% off Funds F d Above Ab Median) M di
Slide 7: Retail Business Review
RETAIL BUSINESS REVIEW We expect the gap between gross sales and redemptions to lessen throughout 2013 – performance of funds will be a critical component Gross Sales • Gross sales - 2.6% of AUM in 2013 vs 2.4% in 2012 • New product offerings are showing strength • Stronger g sales push into IIROC a
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE Three large redemptions in February offset improving gross flows; we expect f h additional further ddi i l outflows fl iin Q2 – however, h we expect to b be more “b “business i as usual” as we exit Q2 2013 • $470 million of gross flows in Q1 • Funnel opportun
Slide 9: Consolidated Financial Results
FINANCIAL RESULTS LTM Trending Results Quarter vs Quarter ) ($ millions, except per share amounts Q2’12 Q3’12 Q4’12 Q1’13 Q1’13 Q1’12 Change Revenue 133 5 133.5 119 8 119.8 125 0 125.0 122 5 122.5 122 5 122.5 132 0 132.0 (7 2%) (7.2%) SG&A 47.0 49.8 41.3 44.1 44.1 43.2 2.1% Continuing Operations EBI
Slide 10: Revenue & EBITDA
REVENUE & EBITDA 150 80 0 80.0 Revenue EBITDA EBITDA (Adjusted) 145 75.0 140 70.0 135 132 0 132.0 133.5 133 5 65 0 65.0 (Revvenue $ millions) TDA $ millions) 130 60.0 125.0 125 52.5 122.5 55.0 50.3 119.8 50.0 120 50 0 50.0 (EBIT 45.3 115 42.2 49.2 45.0 110 40.0 105 35.0 36 3 36.3 (1) 100 30.0 Q1 12
Slide 11: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL A shift to more retail AUM mix drove revenue rate higher; reductions in fixed cost base partially offset impact of lower AUM levels. (bps of average AUM) Q1-13 Q1-12 TTM Q1-13 Average AUM ($ billions) 39.6 46.5 42.3 Average Retail 20.1 22.7 20.9 A Average IInstitutiona
Slide 12: Free Cash Flow
FREE CASH FLOW AGF AGF’ss payout ratio will benefit from increased cash flow resulting from stronger equity markets and share buyback activity Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) 400 $356m 60 106% 50 85% 41.7 39.2 76% 40 ($ millions) 65% 33.2 60% 30 28.2 22.2 20 10 0 12 Q1 12
Slide 13: Focus & Priorities for 2013
FOCUS & PRIORITIES FOR 2013 As we move through 2013 we expect more stability in our operating businesses relative to 2012 and expect market gains to drive improving profitability Key Execution Priorities • Track for 50% of funds above median by end of 2013 • Fall launch of innovative product • Expec
Slide 14: Questions
QUESTIONS