AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q3 2013 Earnings Presentation
13 slides from AGF Management Limited Class B's earnings presentation, Sep 25, 2013
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2013
SEPTEMBER 2013 AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL THIRD QUARTER – 2013 SEPTEMBER 25, 2013
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of September 25, 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 secur
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 3rd Quarter • Business Updates – Investment Management – Retail Business – Institutional Business • Financial Results • Capital & Liquidity • Priorities Exiting Q3 2013 4
Slide 5: Q3-2013 Highlights
Q3-2013 HIGHLIGHTS Retail trajectory improving; Institutional pipeline is positive. • AUM is at $36.4B • Retail gross and net redemption improvement continues • Institutional has a strong gross sales pipeline • EPS of $0.11 • Board confirmed $0.27 dividend 5
Slide 6: Investment Products & Performance
INVESTMENT PRODUCTS & PERFORMANCE Focus on internal process and fulfilling client needs with product innovation • Product innovation: • AGF US AlphaSector Class • AGF Floating Rate Income Fund • AGF Focus Funds • Investment process improvement is producing measurable results 6
Slide 7: Retail Net Redemptions Trend
(1) RETAIL NET REDEMPTIONS TREND Trajectory has improved, fund performance and product solutions are key to sustainability of improving trend. 30% 20% 10% % Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 (10%) Percentage improvement in monthly outflows vs. prior year (20%) (30%) • Gr
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE Gross sales pipeline of $965 million • Gross sales pipeline is robust - $965 million in commitments – Includes $430 million carryover from Q2 committed pipeline – UCITS seed commitments of $535m; platform set for Q4 launch • This is offset by $860 million in
Slide 9: Financial Results
FINANCIAL RESULTS LTM Trending Results Quarter over Quarter ($ millions, except per share amounts) Q4’12 Q1’13 Q2'13 Q3'13 Q3'13 Q3'12 Change Revenue(1) 125.0 122.5 126.9 117.7 117.7 119.8 (1.8%) EBITDA 50.0 45.3 46.1 38.6 38.6 36.3 6.3% EBITDA Margin 40.0% 37.0% 36.3% 32.8% 32.8% 30.3% 8.3% Continu
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL A shift to more retail AUM mix drove revenue rate higher; SG&A bps increase driven by stock compensation and lower AUM levels. (bps of average AUM) Q3-13 Q3-12 TTM Average AUM ($ billions) 36.7 42.1 38.9 Average Retail 19.0 20.7 19.8 Average Institutional and HNW 17.7
Slide 11: Free Cash Flow
FREE CASH FLOW AGF’s payout ratio remains within an acceptable range; balance sheet is strong. Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) $360m 400 40 160% 140% 30 142% 27.7 ($ millions) 24.9 25.4 120% 24.4 100% 20 17.6 95% 96% 91% 80% 84% 60% 10 40% 20% - 0% Q3 2012 Q4 2012 Q1 2013
Slide 12: Focus & Priorities for 2013
FOCUS & PRIORITIES FOR 2013 For the remainder of 2013 we aim to build on sales trajectory improvement in retail and improvement in institutional sales funnel. Key Execution Priorities • Improve investment performance • Maintain new product launch momentum • Retail net sales improvement relative to 2
Slide 13: Questions
re ne Tre! ca Fee oe oe oat pe YR ‘at i ek QUESTIONS