Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q2 2022 Earnings Presentation
40 slides from Fiera Capital Corporation Class A's earnings presentation, Aug 11, 2022
Slide 1: Q2 2022 Results
August 11, 2022 Q2 2022 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 and Fiera Capital’s growth, results of operations, p
Slide 3: Conference Call Participants
Conference Call Participants Jean-Philippe Lemay Global President and Chief Executive Officer Lucas Pontillo Executive Vice President and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q2 2022 Highlights Distribution Performance Investment Platform ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q2 2022 Highlights
Q2 2022 Highlights AUM - $156.7B $17.8B decrease ( 10.2%) in Q2 2022 June 30, 2022 ▪ Private Markets increased $3.1B ( 22.1%) over the last twelve months Gross new mandates of $3.5B expected to generate $24.8M in annualized based management fees Distribution achieved in H1 2022 Performance ▪ Priva
Slide 6: AUM Overview
AUM Overview Q2 2022 Flows ($B) ▪ AUM down $17.8B, or 10.2% ▪ Net positive flows from new and lost mandates ▪ Volatility in equity and fixed income markets driving unfavourable net contributions and market impact Y/Y Flows ($B) ▪ AUM down $22.8B, or 12.7% ▪ Driven by unfavourable equity and fixed in
Slide 7: AUM Flows Across Platform and Geography
AUM Flows Across Platform and Geography – YTD Q2 2022 Canada ($B) Private Markets ($B) United States ($B) Public Markets ($B) Europe & Asia ($B) Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX 2Strategic Ini
Slide 8: Organic Growth Update
Organic Growth Update YTD Flows by Platform New Lost Net Contributions and Distribution Channel Public Private Public Private Public Private Net Organic ($B) Markets Markets Markets Markets Markets Markets Growth Institutional 0.6 1.2 (0.5) (0.2) (2.4) (0.8) (2.1) Financial Intermediaries 0.8 0.1 (0
Slide 9: Institutional Highlights
Institutional Highlights Q2 2022 Highlights YTD AUM Flows In C$ billions Canada ▪ Public Markets outflows stemmed from portfolio rebalancing from Institutional clients as a result of the market downturn ▪ Gross new sales of $0.5B in Public Markets were mainly in multi-asset mandates and $0.2B in Pri
Slide 10: Financial Intermediaries Highlights
Financial Intermediaries Highlights Q2 2022 Highlights YTD AUM Flows In C$ billions Canada ▪ Negative net contributions were partly offset by inflows into equities and Private Markets from two long-standing distribution partnerships U.S. ▪ Positive net organic flows with good momentum from our distr
Slide 11: Private Wealth Canada Highlights
Private Wealth Canada Highlights Q2 2022 Highlights YTD AUM Flows In C$ billions Canada ▪ Standout performance across Public and Private Market strategies with net positive organic growth YTD ▪ The success of our proprietary investment offering in Private Markets and multi-asset solutions has fueled
Slide 12: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth AUM1 ($B) LTM Total Revenues2 ($M) Subtotals and totals may not reconcile due to rounding. Revenue growth of Private Markets surpassing its AUM growth AUM up $7.6B, or 80%, since June 30, 2019 → 3-yr CAGR of 21.6% $0.4B of subscriptions received in Q2 2022 and
Slide 13: Investment Performance Update: Select Private Markets Investment Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q2 2022 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 10.10% - 5.21% 23.33% Fiera Real Estate Small Cap Industrial Fund L.P. 16.46% - 8.44% 34.12% In
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts, private altern
Slide 15: Investment Performance Update
Investment Performance Update Key Public Market Q2 2022 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies (14.04%) (0.60%) (18.72%) (7.95%) 9.36% 2.83% Global Equity (10.93%) 2.51% (9.18%) 1.59% 8.96% 2.4
Slide 16: Total Revenues
Total Revenues ($M) H1’21: $314.7 vs. H1’22: $336.1 Subtotals and totals may not reconcile due to rounding. Q2 2022 Total Revenues of $163.8M, $0.8M, or (0.5%), compared to Q2 2021 ▪ Mainly from Public Markets revenues ( $9.4M), partly offset by Private Markets revenues ( $9.5M) Q2 2022 Base Man
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) H1’21: $67.5 vs. H1’22: $90.8 Subtotals and totals may not reconcile due to rounding. Q2 2022 Base management fees of $37.1M, $8.6M, or 30.2%, compared to Q2 2021 ▪ Additional capital deployment and market appreciation in Private Debt, Infrastructure and Agriculture Q2
Slide 18: Public Markets Revenues
Public Markets Revenues ($M) H1’21: $242.4 vs. H1’22: $241.3 Subtotals and totals may not reconcile due to rounding. Q2 2022 Base management fees of $113.3M, $10.2M, or 8.3%, compared to Q2 2021 ▪ Due to a reduction in AUM across distribution channels due to unfavourable equity and fixed income ma
Slide 19: Selling, General and Administrative Expenses (“SG&A”)
Selling, General and Administrative Expenses (“SG&A”) ($M) SG&A Total Revenues ▪ Excluding share-based compensation, SG&A increased by $2.7M, or 2.4%, in Q2 2022 vs Q2 2021 (2.2%) ▪ Primarily due to higher sub-advisory fees from re- 2.4% categorization following StonePine arrangement ($M) SG&A E
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q2 2022 Adjusted net earnings1,2 ($M) $0.10 per share basic $0.31 per share basic $0.10 diluted $0.30 diluted 1Attributable to Company shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and
Slide 21: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 LTM Adjusted EBITDA Margin Trending Above 30% Quarterly Last Twelve Months 1Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (
Slide 22: Q2 2022 Adjusted EPS Up 5.1% Compared to Q2 2021
Q2 2022 Adjusted EPS Up 5.1% Compared to Q2 2021 ($ per share) 1 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) as well as non-cash items are not standar
Slide 23: LTM Free Cash Flow
LTM Free Cash Flow LTM free cash flow relative to LTM dividend paid ($M) ▪ LTM free cash flow of $109.8m in Q2 2022, compared to $112.6m in Q2 2021 Note: LTM Free Cash Flow is defined as net cash generated by or used in operating activities and adjusted to include: cash paid for the settlement of pu
Slide 24: Financial Leverage Ratios
Financial Leverage Ratios Funded Debt Ratio at 2.05x Net Debt1 ($M) Funded Debt2 ($M) Leverage Ratios Net Debt3 Funded Debt4 1Represents the carrying amounts of long-term debt, net and convertible debt, net, net of cash and cash equivalents, as reported in the condensed consolidated financial statem
Slide 25: Returning Value to Shareholders
Returning Value to Shareholders $43.8M Returned to Shareholders in Q2 2022 Subsequent to June 30, renewal of the NCIB allowing for the purchase for Normal Course Issuer cancellation of up to 4,000,000 Class A subordinate voting shares over the Bid (“NCIB”) twelve-month period ending August 15, 2023.
Slide 26: Progress on Our Strategy in 2022
Progress on Our Strategy in 2022 Private Markets AUM of $17.1B as at June 30, 2022 (3-yr CAGR of 21.6%) Continued deployment of capital of $0.5B in Q2 2022; undeployed capital of $1.9B Growing Private Markets provides strong pipeline for future investment opportunities An increasing share of revenue
Slide 27: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 28: 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 29: 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 ESG Solving for specific needs of our
Slide 30: 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 31: Fiera Capital: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$156.7 billion1 SYMBOL (TSX) FSZ.TO 3rd 64th 141 st MARKET CAP C$954.6 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence a
Slide 32: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1 1Dispositions include: the sale of the rights to manage the retail mutual funds of Fiera Investments LP in June 2020; the sale of WGAM in December 2020; the sale of Bel Air in March 2021; and the termina
Slide 33: AUM by Segments
AUM by Segments AUM as at June 30, 2022 – $156.7B By Geography By Distribution Channel By Asset Class Canada 68% Institutional 52% Public Markets – 48% Equity U.S. 22% Financial intermediaries 40% Public Markets – 41% Europe and other 11% Private wealth 8% Fixed income Private markets 11% Liquid alt
Slide 34: Revenue Diversification
Revenue Diversification Q2 2022 Total Revenues – $163.8M By Geography By Distribution Channel1 By Asset Class2 Canada 62% Institutional 53% Equity 61% U.S. 23% Financial intermediaries 31% Fixed income 14% Europe and other 16% Private wealth 16% Private markets 25% Liquid alternatives <0% and other
Slide 35: Expanding our Global Footprint
Expanding our Global Footprint 852 employees INCLUDING SOME 222 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at June 30, 2022 35 35
Slide 36: Our Responsible Investment Journey
Our Responsible Investment Journey Further enhancement Foundation & Promotion Further Promotion & Transparency & & creation of new Increasing the capabilities Advocacy solutions 2002 2009 2014 2016 2017 2018 2019 2020 2021 2022 ▪ Established Proxy Voting Policy prior to the ▪ Subscribed to MSCI ESG
Slide 37: 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 $6.2B Real Estate $74.7B1 Small Cap, Emerging and Frontier Strategies $5.4B Private Debt $139.6B Canadian Active Universe Strategies $1
Slide 38: 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 39: Thank You
Thank You Investor Relations contacts: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878 39
Slide 40: 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