Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q3 2024 Earnings Presentation
18 slides from Agf Management Limited Class B's earnings presentation, Sep 25, 2024
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2024
AGF Management Limited Earnings Conference Call Third Quarter 2024
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of September 25, 2024. 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 Presenting Kevin McCreadie, CFA, MBA Chief Executive Officer & Chief Investment Officer Ken Tsang, CFA, CPA, MBA Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Head of Global Distribution Ash Lawrence, MBA Head of AGF Capi
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 3rd Quarter of Fiscal 2024 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights AGF continued to make progress against strategic objectives Assets1 of $49.7 billion Strong Adjusted Diluted 18% higher year over Investment Performance EPS of $0.37 year YTD Adjusted Net Revenue of $332 million Strong Financial $300 million in short- and long-term Position invest
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 AUM increase driven by acquisition of KCPL & growth in mutual funds AUM ($ millions) Q3 2024 Q3 2023 Change AGF Investments3 Mutual funds 28,104 24,377 15% ETFs and SMA 2,128 1,332 60% Segregated accounts and sub-advisory 6,430 7,058 (9%) AGF Private
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review Net redemptions have stabilized for the industry and AGF Gross Sales Net Sales 76 Industry 71 70 72 Sales 49 45 50 48 49 ($B)1 3 (11) (9) (16) (19) (20) (28) (4) (4) (33) Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 227 19 AGF 132 77 Retail 76 51 Mutual 982
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to show strong growth YoY CAGR 2,128 +51% 1,332 930 Q3 2022 Q3 2023 Q3 2024 Closing AUM ($M) 8
Slide 9: Adjusted Financial Results
Adjusted Financial Results1,2 Favourable comparative results supported by AGF Capital Partners revenue Sequential Quarter Year over Year Consolidated Adjusted Results ($ millions, except per share amounts) Q3 2024 Q2 2024 Variance Q3 2023 Variance Total Adjusted Net Revenue3 99.8 97.0 3% 84.0 19% Ad
Slide 10: Adjusted Financial Results Split
Adjusted Financial Results1,2 Split Year over year improvements across all businesses Traditional Asset and Wealth Management Sequential Quarter Year over Year ($ millions) Q3 2024 Q2 2024 Variance Q3 2023 Variance Net management, advisory and admin fees3 78.7 81.2 (2.5) 73.8 4.9 DSC and Other Reven
Slide 11: Q3 Adjusted EBITDA
Q3 Adjusted EBITDA1 Adjusted EBITDA excludes non-cash acquisition related expenses Q3 Adjusted EBITDA bridge ($ millions) 40.2 Associated Q3 Balance Sheet items ($M): (2.2) 1.7 Net Contingent Consideration (2) $13.8 Put Option Liability $32.8 5.0 LLTIP Accrual $11.4 Represents cash LLTIP and Conting
Slide 12: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Q2 2024 net mgmt fee bps elevated from performance fee from inst. client Sequential Quarter TTM Average AUM and Bps Detail Q4 2023 to (Average AUM, $ billions) Q3 2024 Q2 2024 Q3 2024 Average AUM excl. AGF Capital Partners ($B)3 43.9 43.3 41.9 Average Mutual Fund 27
Slide 13: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 120 180% 160% 100 94 89 88 140% 83 85 80 120% 100% 60 80% 40 60% 30% 33% 33% 32% 30% 40% 20 20% - 0% TTM Q3 2023 TTM Q4 2023 TTM Q1 2024 TTM Q2 2024 TTM Q3 2024 TTM FCF TTM Dividend to FCF % (1) Free cash
Slide 14: Enterprise value
Enterprise value Sum of the parts suggests upside to current valuation AGF Enterprise Value ($m) 600 550 547 3 500 400 314 2023 EBITDA 300 Excl. Income Implied 544 233 from LT EV / EBITDA Investments Multiple 200 $106m4 2.2x 100 233 - - Market Cap - Ne t Debt - En te rprise Value LT and S T Inves tm
Slide 15: 2024 Focus & Priorities
2024 Focus & Priorities Meet updated Maintain sales Deliver consistent Build a diversified expense momentum and and repeatable private capital guidance penetrate high investment and alternatives while continuing growth distribution performance business to invest in key channels growth areas 15
Slide 16: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $94m and 30% Position • $332m in long- and short-term investments and net cash of ~$3m • Supports strong dividend yield and share buybacks, while investing for growth Outperfor
Slide 17: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story To learn more visit AGF.com ® The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
Slide 18: Disclaimer
DISCLAIMER AGF Investments - AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF Internat