Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — FY2010 Earnings Presentation
16 slides from Agf Management Limited Class B's earnings presentation, Jan 28, 2011
Slide 1: Fiscal 2010 Financial & Operating Results
AGF MANAGEMENT LIMITED Fiscal 2010 Financial & Operating Results Januaryy 28,, 2011
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of January 28, 2011. Certain information presented in these remarks and in this p presentation that is not historical factual information may y constitute forward-lookingg information within the meaning of se
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, M.S.M., CFA, Chairman & Chief Executive Officer • Robert R b t JJ. B Bogart, t CPA, Executive E ti ViVice-President P id t & Chi Chieff Fi Financial i l Officer Offi • Mario Causarano, CA, President & Chief Operating Officer, AGF Trust Company 3
Slide 4: Overview of Fiscal 2010
AGF MANAGEMENT LIMITED: OVERVIEW OF FISCAL 2010 – Consolidated revenue of $614.6 million, up 4.9% year-over-year – EBITDA increases 17.0% to $256.8 million – Investment Management AUM of $43.0 billion – Mutual funds remain in redemptions – Trust loan assets of $3 $3.2 2 billion – down 11 11.1% 1% fr
Slide 5: Assets Under Management
AGF MANAGEMENT LIMITED: ASSETS UNDER MANAGEMENT 50 $44.6 $43.8 $42.9 $43.0 45 $42.6 40 18.9 18.7 18.5 18.2 17.6 35 30 $ billions 25 3.0 3.0 3.1 3.0 3.0 20 15 22.7 22.1 21.4 21.4 22.3 10 5 0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Mutual Funds High-Net-Worth Institutional 5
Slide 6: Trust Loan Assets and Loan Originations
AGF MANAGEMENT LIMITED: TRUST LOAN ASSETS AND LOAN ORIGINATIONS Loan Assets Loan Originations 100 4 $90.3 $88.0 $3.6 $3.5 $3.4 90 3.5 $3.2 $3.2 7.4 80 3 70 2.5 2.2 2.1 60 2.1 71.7 2.0 2.0 millions 50 $ billions 2 40 80.6 15 1.5 $m 30 1 20 1.4 1.4 1.3 1.2 1.2 0.5 10 18.6 0 0 Q4 09 Q1 10 Q2 10 Q3 10 Q
Slide 7: Fiscal 2010 Consolidated Results Overview
AGF MANAGEMENT LIMITED: FISCAL 2010 CONSOLIDATED RESULTS OVERVIEW FINANCIAL RESULTS 2010 2009 % Change AUM $43.0 $44.6 (3.6%) Trust Loan Assets $3.2 $3.6 (11.1)% Revenue $614.6 $586.1 4.9% SG&A $155.5 $158.4 (1.8%) EBITDA $256.8 $219.5 17.0% EBITDA Margin 41.8% 37.5% 11.5% N t IIncome Net $116 8 $11
Slide 8: Investment Management Operations: Revenue, SG&A and EBITDA
INVESTMENT MANAGEMENT OPERATIONS: REVENUE SG&A AND EBITDA REVENUE, Full Year Results FY 2010 Revenue $519.5 132.1 130.7 132.2 132.4 EBITDA $216.3 124.2 Margin 41.6% FY 2009 59.2 56.3 Revenue $475.4 54.4 55.4 EBITDA $181.6 50.2 Margin 38.2.% 35.7 39.2 39.3 38.3 38.7 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Reve
Slide 9: Investment Management Operations: EBITDA
INVESTMENT MANAGEMENT OPERATIONS: EBITDA Q4-10 TTM1 Q4-09 Average AUM ($ billions) 43.8 43.7 44.2 Average Retail 22.3 22.1 22.7 Average Institutional and H-N-W 21.5 21.6 21.5 Revenue (bps) 121 119 120 Less: Trailer Fees (bps) 32 32 32 SG&A (bps)2 38 38 34 EBITDA (bps) 51 49 54 1 Trailing twelve mont
Slide 10: Trust Company Operations: Revenue, SG&A and EBITDA
TRUST COMPANY OPERATIONS: REVENUE SG&A AND EBITDA REVENUE, Full Year Results FY 2010 24.8 24.3 Revenue $95.8 23.6 23.9 EBITDA $41.2 22.8 Margin g 43.0% FY 2009 11.1 10.4 10.6 Revenue $104.3 10.4 9.1 EBITDA $31.5 Margin 30.2% 9.2 9.5 9.0 9.5 8.9 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Revenue* SG&A EBITDA EBIT
Slide 11: Trust Company Operations: Net Interest Margin
TRUST COMPANY OPERATIONS: NET INTEREST MARGIN (NIM) 3.0 2.6 2.6 2.6 2.4 2.4 2.0 Full Year Results FY 2010 NIM 2.6% FY 2009 1.0 NIM 2.4% 0.0 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 NIM (%) 11
Slide 12: Trust Company Operations: Provision for Loan Losses and Efficiency Ratio
TRUST COMPANY OPERATIONS: PROVISION FOR LOAN LOSSES AND EFFICIENCY RATIO 6 50% 41.5% 43.4% 45% Full Year Results 41.1% 39.1% 5 39.7% 40% FY 2010 Efficiency ratio 40.8% 35% Loan Loss Provisions $17.7 4 $ millions 30% FY 2009 4.9 4.7 4.2 Efficiency ratio 36.4% 3 4.0 3.9 25% Loan Loss Provisions $37.6
Slide 13: EPS and Adjusted EPS - Diluted
AGF MANAGEMENT LIMITED: EPS AND ADJUSTED EPS - DILUTED 0.50 Full Year Results Adjusted Adjusted EPS2: EPS3: FY 2010 $0.35 $0.35 EPS $1.30 Adjusted $ $1.38 Adjusted FY 2009 EPS1: EPS $1.09 $0.40 0.34 0.34 Adjusted $0.98 0.30 0 31 0.31 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 1 Excluding a $9.8 million reduction
Slide 14: Acuity Acquisition
AGF MANAGEMENT LIMITED: ACUITY ACQUISITION AGF’s AUM increases to over $51 billion with Acuity Expected p closing g on or about February y 1, 2011 Cash portion funded through a 4-year non-amortization loan up to $200 million Significantly enhances both our retail and institutional businesses
Slide 15: Shareholder Value - Dividend History
AGF MANAGEMENT LIMITED: SHAREHOLDER VALUE – 10 Year Dividend History Maintain Dividend in 2011 Current Yield: 5 4%1 5.4% 1.10 1.00 1.04 1.00 0.90 0.95 0.80 0.78 share 0.70 0.69 0.60 $/s 0.50 0.56 0.40 0.41 0.30 0 30 0.30 0.20 0.26 0.22 0.10 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1 Sh
Slide 16: Questions
QUESTIONS LONDON UK BOSTON TORONTO VANCOUVER SASKATOON HONG KONG DUBLIN BEIJING INNIPEG HALIFAX OTTAWA