Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2020 Earnings Presentation
25 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 13, 2020
Slide 1: Q3 2020 Results
November 13, 2020 Q3 2020 Results
Slide 2: Important Information
Important Information This presentation contains forward-looking statements within the meaning of applicable Canadian securities legislation. These forward-looking statements relate to future events or future performance, and reflect management’s expectations or beliefs regarding future events, incl
Slide 3: Conference Call Participants
Conference Call Participants Jean-Guy Desjardins Chairman and Chief Executive Officer Lead Portfolio Manager, Global Tactical Asset Allocation Jean-Philippe Lemay Global President and Chief Operating Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q3 2020 highlights Discussion on AUM and flows Q3 2020 financial performance review Strategic update 4
Slide 5: Q3 2020 Highlights
Q3 2020 Highlights $177.7B as at September 30, 2020, driven by market return and alpha generation in Q3 ▪ a $13.0B increase ( 8%) over the last twelve months AUM ▪ a $6.7B increase ( 4%) in Q3 2020 Strong organic growth in Institutional; Q3 2020 net sales of $1.3B Basic Adjusted EPS of $0.36 per s
Slide 6: Q3 2020 AUM Highlights
Q3 2020 AUM Highlights Q3 2020 Flows (in $ millions) AUM up $6.7B from June 30, 2020 Favourable market impact of $8.7B ▪ Partly offset by a $1.3B unfavorable impact of foreign exchange fluctuations $0.66B in net redemptions in Q3 2020 6
Slide 7: Q3 2020 Sales Update
Q3 2020 Sales Update (in $ millions) New Lost Net Contributions from Net Organic Sales September 30, 2020 Mandates Mandates Existing Clients /Redemptions AUM Institutional 1,411 (561) 409 1,259 103,807 Retail 102 (656) 450 (104) 38,954 Private Wealth 402 (353) (1,867) (1,818) 34,932 Total 1,915 (1,5
Slide 8: Private Markets Investment Strategies
Private Markets Investment Strategies As at September 30, 2020: $13.6B in AUM $1.5B in committed, undeployed capital Q3 2020: Capital deployed in agriculture and private debt strategies $500M+ in new subscriptions raised in Q3 Global Infrastructure and Agriculture Strategies Well Positioned for Grow
Slide 9: Revenue Trend
Revenue Trend Quarterly ($M) Last Twelve Months ($M) Average base management fees earned on AUM of: ▪ 37.0 bps for the LTM period ended September 30, 2020 ▪ 37.0 bps for the LTM period ended September 30, 2019 ▪ 34.8 bps for the LTM period ended September 30, 2018 9
Slide 10: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (SG&A)1 SG&A and Base Management Fees ($M) 3% year-over-year increase in SG&A compared to a 6% increase in base management fees SG&A Base management fees SG&A increase primarily a result of a ~$7M increase in compensation expense and a $1M increase in fun
Slide 11: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Net earnings (loss) attributable to Company Net earnings (loss) per share1 ($) shareholders ($M) Adjusted net earnings1,2 ($M) $0.36 per share 1) Attributable to Company shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA),
Slide 12: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months2 Q3 2020 Adjusted EBITDA up $6.8M, or 15%, year over year 1) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnin
Slide 13: Leverage, Liquidity and Dividends
Leverage, Liquidity and Dividends Funded debt ratio of 2.89x as at September 30, 2020 Cash and cash equivalents of $45.8M as at September 30, 2020 Dividends ▪ Paid $21.8M in dividends in Q3 2020 ▪ On November 12, 2020, dividend declared of $0.21/share (payable in December 2020) Normal Course Issuer
Slide 14: Investment Performance Update – Public Markets
Investment Performance Update – Public Markets Key Public Market Q3 2020 YTD 2020 3-Year Investment Strategies Added Added Added Return Return Return value Value Value Equity Investment Strategies Global Equity 9.69% 3.84% 10.98% 6.21% 16.76% 6.63% Large Cap Canadian Equity 8.35% 3.62% 2.87% 5.96% 8
Slide 15: Investment Performance Update – Private Markets
Investment Performance Update – Private Markets Key Private Market Investment Strategies Q3 2020 Absolute Performance, since inception Return1 Gross IRR2 Return3 (bps) Fiera Real Estate CORE Fund L.P. 7.80% - 208 Real Estate Fiera Real Estate Small Cap Industrial Fund L.P. 12.68% - 313 Infrastructur
Slide 16: AUM Categorization Changes – By Distribution Channel
AUM Categorization Changes For Illustrative Purposes – By Distribution Channel Current Channels ($B) New Channels ($B) (to be introduced January 1, 2021) AUA Institutional AUM Private Wealth AUM Institutional AUM $177.7B Retail AUM $177.7B Financial Intermediaries AUM Private Wealth AUM ASSETS UNDER
Slide 17: AUM Categorization Changes – By Asset Class
AUM Categorization Changes For Illustrative Purposes – By Asset Class Current asset classes ($B) Public Markets ($B) (to be introduced January 1, 2021) $81.7B Equities $177.7B $77.5B Fixed Income $160.5B $18.5B Alternatives and Other PUBLIC MARKETS Large Cap Equity strategies ▪ Equities $79.4B Small
Slide 18: Breakdown of Private Markets
Breakdown of Private Markets For Illustrative Purposes Private Markets ($B) September 30, 2020 AUM (to be introduced January 1, 2021) Current Private Markets AUM $13.6B $11.7B Infrastructure Bonds moving into ($1.9B) Public Markets Fee-Earning AUM $11.7B (to be introduced January 1, 2021) $4.8B Real
Slide 19: Execution on Strategic Priorities
Execution on Strategic Priorities Q3 Actions Taken Strategic Priorities Implementation and consolidation of the 1 2 new global operating model Continued evolution of Appointment of President, Public Markets Focus on investment our client interaction excellence model Continued progress being made on
Slide 20: Question Period
<> FIERACAPITAL Question Period
Slide 21: APPENDIX: Additional Information on New AUM Categorization
APPENDIX: Additional Information on New AUM Categorization 21
Slide 22: Previous AUM Definitions – By Channel
Previous AUM Definitions – By Channel INSTITUTIONAL ▪ Fiera Capital’s diversified institutional client base includes the pension funds of several large corporations and financial institutions, endowments, foundations, religious and charitable organizations, and public sector funds of major municipal
Slide 23: New AUM Definitions – By Channel
New AUM Definitions – By Channel INSTITUTIONAL ▪ Fiera Capital’s diversified institutional client base includes the pension funds of several large corporations and financial institutions, endowments, foundations, religious and charitable organizations, and public sector funds of major municipalities
Slide 24: Mariem Elsayed, Director, Investor Relations
Mariem Elsayed Director, Investor Relations melsayed@fieracapital.com T 514 954-6619 24
Slide 25: fiera.com
fiera.com > FIERA