14 slides from Agf Management Limited Class B's earnings presentation, Sep 27, 2023
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2023
AGF Management Limited Earnings Conference Call Third Quarter 2023
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of September 27, 2023. 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, MBA Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Head of Global Distribution Jenny Quinn Chief Accounting Officer 3
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 3rd Quarter of Fiscal 2023 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Q3 2023 Highlights
Q3 2023 Highlights AGF continued to make progress against strategic objectives Assets1 of 43% increase in Diluted $42.3 billion EPS of $0.34 7% higher year over SMA & ETFs AUM year over year 6% higher than prior year year Free cash flows of $273 million AGFIA2 retaining $86 million on a in short- an
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 Strong momentum in ETFs and SMA ($ millions) Q3 2023 Q3 2022 Change AGF Investments Mutual funds 24,377 22,496 8% ETFs and SMA 1,332 930 43% Segregated accounts and sub-advisory 7,058 6,930 2% AGF Private Wealth 7,360 7,072 4% AGF Private Capital3 2,
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review AGF continued to gain market share in a challenging environment Industry Sales ($B)1 AGF Retail Mutual Fund Sales ($M)2 Gross Sales Net Sales Gross Sales Net Sales 71 70 AGF Industry redemption redemption rate3 of 15% 982 rate3 of 13% 49 50 45 818 819 672 633 594 227 132
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to exert growth YoY Closing AUM ($M) 1,332 CAGR +49% 930 600 Q3 2021 Q3 2022 Q3 2023 8
Slide 9: Financial Results
Financial Results1 Q3 favourable vs. PY. Q2 results elevated from Private Capital revenue Sequential Quarter Year over Year ($ millions, except per share amounts) Q3 2023 Q2 2023 Variance Q3 2022 Variance Net management, advisory and admin fees2 73.8 75.7 (2.5%) 70.9 4.1% Deferred sales charges 1.8
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Lower net mgmt. fee bps offset by higher average AUM Sequential Quarter TTM Q4 2022 to (Average AUM, $ billions) Q3 2023 Q2 2023 Q3 2023 Average AUM excl. Private Capital ($B)3 39.8 39.7 39.1 Average Mutual Fund 24.2 24.0 23.6 Average Institutional, Sub-Advisory, 15
Slide 11: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 100 90 86 84 80 76 70 70 60 59 ($ millions) 50 40 30 44% 37% 35% 32% 31% 20 10 0 TTM Q3 2022 TTM Q4 2022 TTM Q1 2023 TTM Q2 2023 TTM Q3 2023 TTM Dividend to FCF % TTM FCF (1) Free cash flow represents cas
Slide 12: AGF Valuation
AGF Valuation AGF share price is attractively valued 500 252 $3.76 / share Fair market value of long-term investments, with no net debt Market Capitalization1 ~$500m Implied remaining Enterprise Value is valued 248 $3.70 / share at just 2.5x of LTM EBITDA2 AGF (1) Share price as of Sept 6, 2023. (2)
Slide 13: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $86m and 31% Position • $273m in long- and short-term investments and no outstanding net debt AGF continues to outperform the industry while diversifying channel growth: Indust
Slide 14: 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.