Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2019 Earnings Presentation
24 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 8, 2019
Slide 1: Q3 2019 Results
NOVEMBER 8, 2019 Q3 2019 Results VINCENT DUHAMEL Global President and Chief Operating Officer LUCAS PONTILLO Executive Vice President and Global Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera Capital") objectives, strategies
Slide 3: Q3 2019 Highlights
Q3 2019 Highlights Q3 2019 Adjusted EBITDA of $46.6 million (29.1% margin) ▪ Q2 2019 Adjusted EBITDA of $45.8M, margin of 30.6% Dividend of $0.21/share declared Three acquisitions closed during the 3rd quarter ▪ Foresters Asset Management (“Foresters”) – added $11.2B in AUM ▪ Integrated Asset Manage
Slide 4: AUM Growth
AUM Growth AUM of $164.7B, as at September 30, 2019 AUM (in $ millions) AUM up $15.2B from June 30, 2019 $3.8B in gross new clients in Q3 2019 mostly in fixed income, but also global equities and private alternative investment strategies ▪ $7.8B for the first nine months of 2019 Lost mandates mostly
Slide 5: Operations Overview
Operations Overview Canada U.S. $13B in AUM added from Foresters and Strong investment performance across most Fiera Investments fixed income strategies and the Fiera Capital Emerging Markets Fund $2B in AUM added from IAM Bel Air AUM up Strong investment performance ▪ New mandates of close to $200M
Slide 6: Private Alternative Investments
Private Alternative Investments Total alternative LIQUID PRIVATE investment strategies as at September 30, 2019 1 $14.9B1 (in $ billions) (in $ billions) FIERA PRIVATE ALTERNATIVE INVESTMENTS AUM $12.1B As at September 30, 2019, total committed, undeployed capital of: >$1.5B Committed, undeployed 25
Slide 7: Revenue Trend
Revenue Trend Revenue (in $ millions) Last twelve months Quarterly 7
Slide 8: Average BPS Evolution vs AUM
Average BPS Evolution vs AUM1 Q3 2019 average: 37.3 bps 1) Average basis points calculated as a function of base management fees. 8
Slide 9: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1,2 and Adjusted EBITDA Margin1,2 Adoption of IFRS 162 1) Earnings 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) as well as non-cash items are not
Slide 10: Reconciliation of Net loss to Adjusted net earnings
Reconciliation of Net loss1 to Adjusted net earnings1,2 (in $ millions) Q3 2019 1 1,2 3 1) Attributable to the Company’s shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and adjusted EBITDA per share, adjusted net earnings and adjusted net earn
Slide 11: Solid financial position
Solid financial position Q3 Highlights Cash flows from operating activities of $74.3M during the first nine months of the year Cash and cash equivalents of $87.8M as at September 30, 2019 Continued commitment to optimize the capital structure and effectively manage financial leverage ▪ $110M issuanc
Slide 12: Investment Performance Update
Investment Performance Update FIXED INCOME ▪ Performance similar to benchmark, despite significant Q3 2019 volatility BALANCED MANDATES ▪ Slightly negative quarter as a result of underweighting in bonds EQUITIES ▪ Canadian Equities and Emerging Markets teams had a strong quarter ▪ Global Equity cont
Slide 13: Outlook
Outlook Expect uncertainties pertaining to both the economic and political backdrop to recede 2022 Strategic Plan: Establish Fiera Capital as one of top 100 asset managers in the world ▪ Ongoing execution of Strategic Plan initiatives Capital allocation priorities ▪ Improve global distribution capab
Slide 14: Question Period
<> FIERACAPITAL Question Period
Slide 15: Appendix A: Additional Financial Information
Appendix A Additional Financial Information 15
Slide 16: Year-over-Year AUM Growth
Year-over-Year AUM Growth (in $ millions) Acquisitions Clearwater Capital Partners (~$1.8B) – closed August 2018 80% interest in Palmer Capital Partners (~$740M) – closed April 2019 IAM (~2.0B) – closed July 2019 Fiera Investments (~$1.8B) – closed July 2019 Foresters (~$11.2B) – closed August 2019
Slide 17: AUM and Revenues Breakdown – by Geography
AUM and Revenues Breakdown – by Geography AUM as of September 30, 2019 YTD September 2019 revenues Canada 56% Canada 50% U.S. 29% U.S. 35% Europe and other 15% Europe and other 15% 50% of YTD 2019 revenues were generated outside Canada, compared to 30% in 2015 17
Slide 18: Appendix B: Investment Performance
Appendix B Investment Performance 18
Slide 19: Investment Performance – Fixed Income
Investment Performance (September 30, 2019) Traditional Strategies – Fixed Income Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Integrated Fixed Income Credit 8.97 0.06 4.43 0.29 2012 FTS
Slide 20: Investment Performance – Balanced and Equity
Investment Performance (September 30, 2019) Traditional Strategies – Balanced and Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) BALANCED Balanced Core 9.55 2.40 8.23 1.82 1984 Balanced Core Ble
Slide 21: Investment Performance – Equity
Investment Performance (September 30, 2019) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) EQUITY INVESTMENT STRATEGIES Apex Large Cap Growth* 5.57 1.87 13.53 0.14 2007
Slide 22: Investment Performance – Alternative Strategies
Investment Performance (September 30, 2019) Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) LIQUID North American Market Neutral Fund -0.32 2.71 2007 Absolute Return Long / Short Equity Fund -1.63 4.85 2010 Abso
Slide 23: Mariem Elsayed, Director, Investor Relations and Public Affairs
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 23
Slide 24: fiera.com
fiera.com > FIERA