Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q2 2020 Earnings Presentation
20 slides from Fiera Capital Corporation Class A's earnings presentation, Aug 14, 2020
Slide 1: Q2 2020 Results
August 14, 2020 Q2 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 Presenting 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 Q2 2020 highlights Discussion on AUM and flows Q2 2020 financial performance review Strategic priorities Market outlook 4
Slide 5: Q2 2020 Highlights
Q2 2020 Highlights Positive organic flows +$1.1B in net new flows in Q2 2020 across all markets o Higher than the $0.6B in net flows expected at the time of preliminary AUM reporting o No change to total AUM of $171 billion Strong financial Adjusted EPS of $0.38 per share performance Adjusted
Slide 6: Q2 2020 Highlights – AUM
Q2 2020 Highlights – AUM AUM Back to Pre-Pandemic Levels AUM up $12.9B from March 31, 2020 $1.1B in net new clients in Q2 2020 June 30, 2020 AUM back to pre-pandemic levels Favourable market impact of $15.9B More tempered V-shape rebound reflects lower volatility in Company’s AUM portfolio Partly
Slide 7: Q2 2020 Sales Update
Q2 2020 Sales Update (in $ millions) Gross New Sales Gross Net Anticipated Q2 Organic Flows, Redemptions Organic Sales Attrition Excluding Attrition Institutional 2,339 (2,216) 123 860 983 Private Wealth 803 (349) 454 - 454 Retail 1,016 (522) 494 - 494 Total 4,158 (3,087) 1,071 860 1,931 INSTITUTION
Slide 8: Revenues
Revenues Quarterly ($M) Last Twelve Months ($M) Average base management fees earned on AUM continue to trend upward 37.2 bps for the LTM period ended June 30, 2020 36.7 bps for the LTM period ended June 30, 2019 33.9 bps for the LTM period ended June 30, 2018 8
Slide 9: Selling, general and administrative expenses
Selling, general and administrative expenses Base management fees and Selling, general and administrative expenses and External managers (“SG&A”) ($M) 15% SG&A 11% Base management fees Base management fees growing faster than SG&A 11% year-over-year SG&A increase compared to a 15% increase in
Slide 10: Net Earnings & Adjusted Net Earnings
Net Earnings & Adjusted Net Earnings Net earnings (loss) attributable to Company Net earnings (loss) per share1 ($) shareholders ($M) Adjusted net earnings1,2 ($M) $0.38 per share 1) Attributable to Company shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), Adju
Slide 11: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months2 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
Slide 12: Liquidity and Dividends
Liquidity and Dividends Cash and cash equivalents of $56.3M as at June 30, 2020 Used $18M to pay down the credit facility in Q2 2020 Paid $42M in dividends in Q2 2020, representing 2 dividend payments Net cash generated by operating activities of $52.4M in Q2 2020, up $10.4M of 25% compared to Q
Slide 13: Leverage
Leverage ($M) 1 2 1) Net debt includes Credit facilities, Convertible debentures and Hybrid debentures, net of cash and cash equivalents. 2) Total debt includes Credit facilities, Convertible debentures and Hybrid debentures. Funded debt ratio of 2.97x down from 3.15x in Q1 2020 13
Slide 14: Investment Performance Update – Public Markets
Investment Performance Update – Public Markets Key Public Market Q2 2020 YTD 2020 3-Year Investment Strategies Added Added Added Return Return Return value Value Value Equity Investment Strategies Global Equity 11.23% (2.98%) 1.17% 2.20% 13.90% 5.50% Large Cap Canadian Equity 8.71% (8.26%) (5.06%) 2
Slide 15: Investment Performance Update – Private Markets
Investment Performance Update – Private Markets Key Private Market Investment Strategies Performance, since inception Return1 Gross IRR2 Fiera Real Estate CORE Fund L.P. 7.77% - Real Estate Fiera Real Estate Small Cap Industrial Fund L.P. 12.66% - Infrastructure EagleCrest Infrastructure3 - 9.96% Fi
Slide 16: Strategic Priorities
Strategic Priorities 1 2 Continued Focus on evolution of investment our client excellence interaction model 3 4 Delivering value to shareholders New global through optimized operating model capital allocation Taking steps to globalize Fiera Capital through the ongoing execution of the 2022 Strategic
Slide 17: Strategic Update
Strategic Update New Global Operating Model On June 17, 2020, we announced a new global management structure to further accelerate our transition to a global, multi-solutions asset manager with the capabilities to service any client, anywhere. Business activities now organized across three operating
Slide 18: Question Period
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Slide 19: Mariem Elsayed, Director, Investor Relations and Public Affairs
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 19
Slide 20: fiera.com
fiera.com > FIERA(