Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q4 2023 Earnings Presentation
38 slides from Fiera Capital Corporation Class A's earnings presentation, Feb 28, 2024
Slide 1: Q4 2023 Results
February 28, 2024 Q4 2023 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 Q4 2023 Highlights Commercial Performance Investment Performance ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q4 2023 Highlights
Q4 2023 Highlights AUM in Q4 2023 increased $6.4B quarter over quarter ending at $161.7B AUM - $161.7B ▪ Public Markets AUM ( 4.8%), primarily from favourable market returns offset by an outflow of mandates, December 31, primarily on AUM sub-advised by PineStone 2023 ▪ Private Markets AUM essential
Slide 6: AUM Overview – Q4 2023
AUM Overview – Q4 2023 QoQ ($B) Private Markets Public Markets ▪ AUM up $6.4B or 4.1% to $161.7B Favourable market impact of $11.6B offset by negative organic growth of $5.0B, primarily stemming from outflows on AUM sub-advised by PineStone of $3.2B, which includes $2.4B that transferred directly, a
Slide 7: AUM Flows Across Platform – Q4 2023
AUM Flows Across Platform – Q4 2023 Public Markets excluding PineStone1 ($B) Private Markets ($B) 1 Public Markets ($B) PineStone1 ($B) 1 Subtotals and totals may not reconcile due to rounding. 1AUM sub-advised by PineStone Asset Management Inc (“PineStone”). 2Market and Other includes the impact of
Slide 8: AUM Flows Across Geography – QoQ Q4 2023
AUM Flows Across Geography – QoQ Q4 2023 Canada ($B) United States ($B) - EMEA ($B) Asia ($B) 13. 13. Subtotals and totals may not reconcile due to rounding. 1Net contributions in Private Markets includes return of capital to clients. 2Market and Other includes the impact of market changes, income d
Slide 9: Commercial Highlights – FY2023: Institutional and Financial Intermediaries
Commercial Highlights – FY2023 AUM Flows Base Management Fees In C$ 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
Slide 10: Commercial Highlights – FY2023 cont’d: Private Wealth
Commercial Highlights – FY2023 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. 2023 Highlights Institutional Financial Intermediaries Private Wealth ▪ Although on a year-over-yea
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 $5.1B, or 38%, since December 31, 2020 → 3-yr CAGR of 11% $0.3B of subscriptions received in Q4 2023
Slide 12: Investment Performance Update – Select Private Markets Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q4 2023 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.37% - (3.38)% (2.09)% Fiera Real Estate Industrial Fund L.P. 15.01% - 1.45% 8.46% Infrastruct
Slide 13: Investment Performance Update – Key Public Market Strategies
Investment Performance Update Key Public Market Q4 2023 1-Year 3-Year 5-year Investment Strategies1 Added Added Added Added Return Return Return Return Value Value Value Value Equity Investment Strategies Atlas Global Companies 11.75% 3.09% 20.93% 0.47% 4.74% (3.77%) 15.50% 3.48% Global Equity 7.88%
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts and accounts fo
Slide 15: Total Revenues
Total Revenues ($M) - Subtotals and totals may not reconcile due to rounding. Q4 2023 Total Revenues of $211M, $26M, or 14%, compared to Q4 2022 ▪ Base management fees stable and performance fees significantly increased due to European Emerging Market strategies Q4 2023 Base Management fees of $14
Slide 16: Public Markets Revenues
Public Markets Revenues ($M) - - Subtotals and totals may not reconcile due to rounding. Q4 2023 Base management fees of $102M, $4M, or 3%, compared to Q4 2022 ▪ Decreases primarily due to lower average AUM, mainly from lower assets under management sub-advised by PineStone Q4 2023 Performance fee
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q4 2023 Base management fees of $45M, $3M, or 8%, compared to Q4 2022 ▪ Largely driven by higher AUM from new mandates in our Real Estate, Agriculture and market appreciation Q4 2023 Commitment and transaction fe
Slide 18: Selling, General and Administrative Expenses (“SG&A”)
Selling, General and Administrative Expenses (“SG&A”) YoY ($M) SG&A excl. SBC Total Revenues ▪ SG&A excluding share-based compensation (“SBC”) was relatively flat when comparing the current quarter versus the prior year quarter 14.2% ▪ The increase in 1.1% revenues significantly offset the margi
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 Q4 2023 Adjusted net earnings1,2 ($M) $0.37 per share basic $0.47 per share basic $0.30 diluted $0.37 diluted 1Attributable to the Company’s shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBIT
Slide 21: Per Share Metrics
Per Share Metrics ($ 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 relative to LTM dividends paid
LTM Free Cash Flow LTM Free Cash Flow1 relative to LTM dividends paid ($M) ▪ Significant improvement in LTM Free Cash Flow to $89M in Q4 2023, 93.5 compared to $59M 88.3 in Q4 2022, and covering the LTM dividends paid ▪ Average LTM Free Cash Flow continuing to exceed average LTM dividends paid over
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Total Debt vs. Net Debt1,5 ($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 2023
Progress on Our Strategy in 2023 Private Markets AUM $18.5B as of Q4 2023; 3-year LTM revenue CAGR of 21% Growing Private • New subscriptions of $1.6B, with $900 million of capital deployed in 2023 ▪ Undeployed capital of $1.0B provides strong pipeline for future opportunities Markets Fiera Real Est
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$161.7 billion1 SYMBOL (TSX) FSZ.TO 3rd 70th 164 th MARKET CAP C$640.1 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global p
Slide 30: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($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 December 31, 2023 – $161.7B By Geography By Distribution Channel By Asset Class Canada 69% Institutional 55% Public Markets – 47% Equity U.S. 22% Financial Intermediaries 36% Public Markets – 42% EMEA 7% Private Wealth 9% Fixed income Private markets 11% Asia 2% Liquid alte
Slide 32: Revenue Diversification
Revenue Diversification Q4 2023 Total Revenues – $211.0M By Geography By Distribution Channel By Asset Class2 Canada 55% Institutional 44% Equity 57% U.S. 16% Financial Intermediaries 34% Fixed income 14% EMEA 25% Private wealth 15% Private markets 29% Asia 4% Other1 7% Liquid alternatives <1% and o
Slide 33: Expanding our Global Footprint
Expanding our Global Footprint 842 employees INCLUDING SOME 224 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at December 31, 2023 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 $6.5B Real Estate $75.1B1 Small Cap, Emerging and Frontier Strategies $5.1B Private Debt Canadian Active Universe Strategies $143.2B $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