Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q1 2024 Earnings Presentation
38 slides from Fiera Capital Corporation Class A's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Results
<> FIERACAPITAL May 8, 2024 Q1 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 Q1 2024 Highlights Commercial Performance Investment Performance ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q1 2024 Highlights
Q1 2024 Highlights AUM - $165.2B AUM in Q1 2024 increased $3.5B quarter over quarter ending at $165.2B ▪ Public Markets AUM ( 2.2%), primarily from favourable equity market returns partly offset by outflows, largely March 31, relating to AUM sub-advised by PineStone 2024 ▪ Private Markets AUM ( 2.
Slide 6: AUM Overview – Q1 2024
AUM Overview – Q1 2024 QoQ ($B) Private Markets Public Markets ▪ AUM up $3.5B or 2.2% to $165.2B Favourable market impact of $6.4B partly offset by negative net organic growth of $2.8B, primarily stemming from outflows on AUM sub-advised by PineStone of $2.8B, of which $2.7B transferred directly to
Slide 7: AUM Flows Across Platform – Q1 2024
AUM Flows Across Platform – Q1 2024 Public Markets ($B) Public Markets excluding PineStone1 ($B) 1 PineStone1 ($B) Private Markets ($B) 1 Subtotals and totals may not reconcile due to rounding. 1AUM sub-advised by PineStone. 2Market and Other includes the impact of market changes, income distributio
Slide 8: AUM Flows Across Geography – QoQ Q1 2024
AUM Flows Across Geography – QoQ Q1 2024 Canada ($B) United States ($B) - EMEA ($B) Asia ($B) 13. 13. Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. 8
Slide 9: Commercial Highlights – Institutional and Financial Intermediaries
Commercial Highlights AUM Flows Base Management Fees In C$ billions In C$ millions Institutional Financial Intermediaries Public Markets Private Markets Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. 2Stra
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. Q1 2024 Highlights I
Slide 11: Private Markets – Continuous growth trend
Private Markets – Continuous growth trend AUM1 ($B) LTM Total Revenues ($M) Subtotals and totals may not reconcile due to rounding. Revenue growth of Private Markets surpassing its AUM growth AUM up $5.2B, or 38%, since March 31, 2021 → 3-yr CAGR of 11% $0.6B of subscriptions received in Q1 2024 and
Slide 12: Investment Performance Update – Private Markets Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 Q1 2024 Absolute 1-YR (since inception) Return4 Absolute Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.36% - 1.93% 0.94% Fiera Real Estate Small Cap Industrial Fund L.P. 14.73% - 1.24% 6.51% Infra
Slide 13: Investment Performance Update – Public Markets Strategies
Investment Performance Update Key Public Market Q1 2024 1-Year 3-Year 5-year Investment Strategies1 Added Added Added Added Return Return Return Return Value Value Value Value Equity Investment Strategies Atlas Global Companies 6.90% (4.84%) 13.79% (11.31%) 8.41% (2.90%) 13.50% 1.14% Global Equity 1
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts and accounts fo
Slide 15: Total Revenues
Total Revenues ($M) - Subtotals and totals may not reconcile due to rounding. Q1 2024 Total Revenues of $168M, $11M, or 7%, compared to Q1 2023 ▪ Driven by higher base management fees in Private Markets, along with higher earnings from JV and associates and other revenues Q1 2024 Base Management f
Slide 16: Public Markets Revenues
Public Markets Revenues ($M) - - Subtotals and totals may not reconcile due to rounding. Q1 2024 Base management fees of $106M, in line with Q1 2023 ▪ Decrease from outflows due to lost PineStone Equity Mandates, offset by an increase from new mandates and favourable market impact Q1 2024 Performanc
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) - - - - - Subtotals and totals may not reconcile due to rounding. Q1 2024 Base management fees of $45M, $4M, or 11%, compared to Q1 2023 ▪ Driven by higher AUM, primarily from clients in Canada and EMEA in Agriculture and Real Estate strategies, and new subscriptions
Slide 18: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues ▪ SG&A excluding share-based compensation (“SBC”) declined 8% from the prior quarter ▪ The decrease was primarily due to lower sub-advisory 20.3% fees related to performance 8.0% fees crystallized in the
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months 1Earnings 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 pr
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q1 2024 Adjusted net earnings1,2 ($M) $0.07 per share basic $0.25 per share basic $0.07 diluted $0.24 diluted 1Attributable to the Company’s shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBIT
Slide 21: Per Share Metrics
Per Share Metrics ($ per share) 1Earnings 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 Flow increased to $72M from $68M in Q1 91.4 88.5 2023 ▪ Over the last 10 quarters, average LTM Free Cash Flow remains above average LTM dividends paid 1LTM Free Cash Flow is not a standardized measure prescrib
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Total Debt vs. Net Debt1,5 ($M) Funded Debt2 ($M) Leverage Ratios 1Represents 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. 2Represents gr
Slide 24: Progress on Our Strategy in 2024
Progress on Our Strategy in 2024 Private Markets AUM $18.9B as of Q1 2024; 3-year LTM revenue CAGR of 22% Growing Private New subscriptions of $0.6B, with $200 million of capital deployed in Q1 2024 ▪ Undeployed capital of $1.4B provides strong pipeline for future opportunities Markets Agri Investor
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$165.2 billion1 SYMBOL (TSX) FSZ.TO 3rd 70th 164 th MARKET CAP C$868.2 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global p
Slide 30: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1Data presented excludes dispositions. See Glossary on page 36 for details. 30 30
Slide 31: AUM by Segments
AUM by Segments AUM as at March 31, 2024 – $165.2B By Geography By Distribution Channel By Asset Class Canada 69% Institutional 53% Public Markets – 49% Equity U.S. 22% Financial Intermediaries 38% Public Markets – 40% EMEA 7% Private Wealth 9% Fixed income Private markets 11% Asia 2% Liquid alterna
Slide 32: Revenue Diversification
Revenue Diversification Q1 2024 Total Revenues – $168.1M By Geography By Distribution Channel By Asset Class2 Canada 62% Institutional 48% Equity 57% U.S. 21% Financial Intermediaries 28% Fixed income 13% EMEA 14% Private wealth 17% Private markets 30% Asia 3% Other1 7% Liquid alternatives <1% and o
Slide 33: Expanding our Global Footprint
Expanding our Global Footprint 845 employees INCLUDING SOME 221 INVESTMENT PROFESSIONALS Calgary Halifax London The Hague Toronto Montreal Frankfurt Dayton Boston Zurich New York Hong Kong Abou Dabi Singapore As at March 31, 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 $6.7B Real Estate $80.5B1 Small Cap, Emerging and Frontier Strategies $5.2B Private Debt Canadian Active Universe Strategies $146.3B $1
Slide 36: Glossary
Glossary AUM Organic Flows: Gross - Represents new mandates in Public Markets, and new subscriptions, including committed, undeployed capital in Private Markets Net - Represents the sum of: new mandates in Public Markets; new subscriptions, including committed, undeployed capital in Private Markets;
Slide 37: 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 38: Thank You
Thank You Investor Relations contact: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878