Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q4 2018 Earnings Presentation
20 slides from Fiera Capital Corporation Class A's earnings presentation, Mar 22, 2019
Slide 1: Q4 2018 Results
March 22, 2018 Q4 2018 Results VINCENT DUHAMEL LUCAS PONTILLO Global President and Executive Vice President and Chief Operating Officer Global Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera Capital") objectives, strategies
Slide 3: Highlights
Highlights Announced an agreement to acquire Integrated Asset Management Corp. (“IAM”) Enterprise value of $64M (and $10M of adjusted cash on hand) ▪ Adds $2B in AUM and an additional $1.1B in undeployed, committed capital Q4 2018 new client AUM won of $1.4B 2018 AUM up 6% year over year to $136.7B
Slide 4: 2018 Overview
2018 Overview Canada ▪ Excellent investment performance driven by the Global Equity, Canadian Equity, SIS1 and ASFI2 teams ▪ CGOV contributing to cash flows and margins ▪ Streamlining of custodians completed in the 4th quarter ▪ Closed the sale of retail mutual funds to Canoe Financial LP U.S. ▪ Tra
Slide 5: Private Alternative Investments
Private Alternative Investments Added $1.3B in AUM in 2018 New mandates won and developments across the board: ▪ Flagship CORE ▪ Record AUM, ▪ Announced a ▪ Launched its ▪ Launched Direct Fund record year revenues and long-term deal first Private Lending Fund ▪ Announced EBITDA1 flow Partnership Equ
Slide 6: Financial Highlights: Q4 2018 vs Q4 2017
Financial Highlights: Q4 2018 vs Q4 2017 Q4-2018 Q4-2017 Variation $ $ $ Total AUM 136.7B 128.9B 7.8B Total Revenues 157.0M 142.0M 15.0M Base Management Fees 128.6M 105.3M 23.3M Total Performance Fees 17.8M 31.2M (13.4)M Other Revenues 10.6M 5.5M 5.1M Adjusted EBITDA1 39.3M 36.1M 3.2M Net Earnings (
Slide 7: Financial Highlights: Q4 2018 vs Q3 2018
Financial Highlights: Q4 2018 vs Q3 2018 Q4-2018 Q3-2018 Variation $ $ $ Total AUM 136.7B 143.5B (6.8)B Total Revenues 157.0M 137.1M 19.9M Base Management Fees 128.6 126.9M 1.7M Total Performance Fees 17.8 1.2M 16.6M Other Revenues 10.6 9.0M 1.6M Adjusted EBITDA1 39.3M 36.6M 2.7M Net Earnings (1.7)M
Slide 8: Revenue Trend – Quarterly & Last Twelve Months
Revenue Trend – Quarterly & Last Twelve Months $M $M 180 525.4 540.3 600 478.5 495.4 438.1 459.1 412.8 500 160 378.5 157.0 400 142.0 140 137.1 300 126.2 200 120.0 120 100 109.3 107.1 100.6 0 100 -100 80 -200 60 -300 -400 40 -500 -600 20 -700 0 -800 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-
Slide 9: Adjusted EBITDA ($) & Margin (%) Trend
Adjusted EBITDA ($) & Margin (%) Trend $M 60 26.7% 26.0% 25.4% 25.1% 25.9% 25.1% 25.2% 50 24.0% 20% 40 39.3 36.6 36.1 30 32.7 28.5 27 25.2 10% 20 28.8 10 0 0% Q1-2017 Q1-2018 Q2-2017 Q2-2018 Q3-2017 Q3-2018 Q4-2017 Q4-2018 Adjusted EBITDA1 (Prior Year Quarterly Comparison) Adjusted EBITDA1 Adjusted
Slide 10: LTM EBITDA, LTM Adjusted EBITDA and Margin (%) Trend
LTM EBITDA ($), LTM Adjusted EBITDA ($) and and Margin (%) Trend $M 140 134.2 137.5 80% 122.3 124.6 121.2 120.4 120 116.2 116.8 70% 60% 100 84.8 81.3 50% 78.1 80 71.3 71.3 66.5 69.1 69.2 40% 60 30.7% 29.4% 27.9% 25.4% 25.2% 25.2% 25.5% 25.4% 30% 40 20% 20 10% 0 0% Q1-2017 Q2-2017 Q3-2017 Q4-2017 Q1-
Slide 11: Average BPS Evolution vs AUM
Average BPS Evolution vs AUM $B BPS 150 139.4 143.5 40 131.4 136.7 125.9 128.9 122.1 123.0 125 36.0 34.8 100 34.2 35 33.3 32.6 75 Q4 2018 average: 31.5 37.6 bps 30.4 50 30 28.6 25 0 25 Q1-2017 Q2-2017 Q3-2017 1 Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 AUM - End of Period ($ Billion) Average BPS - LTM
Slide 12: AUM and Revenues Breakdown – by Geography
AUM and Revenues Breakdown – by Geography AUM as of December 31, 2018 Revenues Q4 2018 Canada 57% Canada 51% U.S. 31% U.S. 33% Europe and other 12% Europe and other 16% 50% of 2018 revenues were generated outside Canada, compared to 30% in 2015 12
Slide 13: Investment Performance (December 31, 2018)
Investment Performance (December 31, 2018) Traditional Strategies – Fixed Income and Balanced Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Active and Strategic Fixed Income - Active 1.75
Slide 14: Investment Performance (December 31, 2018)
Investment Performance (December 31, 2018) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION YEAR NAME Return (%) Added Value (%) Return (%) Added Value (%) Equity Investment Strategies Canadian Equity -2.41 6.48 7.63 3.57 2013 S&P/TSX C
Slide 15: Investment Performance (December 31, 2018)
Investment Performance (December 31, 2018) Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) North American Market Neutral Fund 0.94 4.16 2007 Absolute Return Long / Short Equity Fund -2.28 7.50 2010 Absolute Retu
Slide 16: Outlook
Outlook Notwithstanding Q4 2018 volatility, outlook for global growth remains reasonably bright 2022 Strategic Plan: Establish Fiera Capital as a top-tier, multi-strategy asset manager ▪ Plan rooted in diversification and scalability Continue to pursue growth organically and through M&A Deliver alph
Slide 17: Question Period
Question Period 17
Slide 18: Mariem Elsayed, Investor Relations
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 18
Slide 19: Thank You
Thank You 19
Slide 20: fieracapital.com
fieracapital.com