Sprott Inc. · TSX:SII
Sprott — FY2022 Earnings Presentation
17 slides from Sprott's earnings presentation, Feb 24, 2023
Slide 1: 2022 Annual Results
2022 Annual Results February 24, 2023 NYSE/TSX:SII Contrarian. Innovative. Aligned
Slide 2: Forward-looking Statements
Forward-looking Statements Certain statements in this presentation or the accompanying oral remarks contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities l
Slide 3: Speakers
Speakers Whitney George, CEO, Sprott Inc. Kevin Hibbert, CFO, Sprott Inc. John Ciampaglia, CEO, Sprott Asset Management Sprott Inc. | 3
Slide 4: 2022 and YTD Highlights
2022 and YTD Highlights • Sprott’s positioning in precious metals and energy transition materials served our shareholders well during a challenging year • Our physical trusts and private strategies delivered strong net sales and continue to be the key drivers of AUM growth • Building scale in ETF bu
Slide 5: Historical AUM summary
Historical AUM summary Sprott Inc. | 5
Slide 6: Segment results - 3 and 12 months ended
Segment results - 3 and 12 months ended 3 months ended 12 months ended (1) EBITDA is a non-IFRS measure. See slide 2 and 17. These amounts are net of corporate costs, consolidation, elimination, and non- reportable segment entries of $1.7MM in the quarter (Q4 2021: ($3.4MM)) and $(9.7MM) on a full y
Slide 7: Strong balance sheet
Strong balance sheet As at December 31, 2022 o Keeps our balance sheet liquid while allowing 19% Co-investment shareholders to participate in the long-term return of assets profile of our LPs o Strong access to liquidity while remaining Committed credit facility $120MM conservatively leveraged (Dec.
Slide 8: Physical Trusts
Physical Trusts • $128M in net sales during Q4; $2B in 2022 o PSLV and SPUT were key contributors in Q4 o Strong sales in SPUT, PHYS and PSLV on an annual basis • SPUT has seen renewed investor engagement and solid sales YTD Physical Trust Sales (in millions) $856 $776 $579 $505 $423 $406 $410 $346
Slide 9: ETFs: Energy Transition Suite Launch
ETFs: Energy Transition Suite Launch • Doubled our ETF offering by listing 4 ETFs on the Nasdaq on Feb. 2, 2023 o Sprott Energy Transition Materials ETF (SETM) o Sprott Lithium Miners ETF (LITP) o Sprott Junior Uranium Miners ETF (URNJ) o Sprott Junior Copper Miners ETF (COPJ) • Building a leadershi
Slide 10: Marketing Campaign
Marketing Campaign Sprott Inc. | 10
Slide 11: Managed Equities
Managed Equities • Gold and silver equity strategies underperformed in 2022’s difficult macroeconomic environment o Sprott strategies’ overweight to small cap was a detractor • Energy transition strategy has performed well since mid-2022 launch • Focus Trust’s unchanged performance compared very fav
Slide 12: Private Strategies
Private Strategies • Combined Lending and Streaming Strategies AUM of $1.9B as of Dec. 31, 2022 • Lending Fund II invested and in harvesting stage • Streaming and Royalty Fund actively deploying capital • Adding new fund vintages and strategy extensions o Strong support from existing and new LPs Spr
Slide 13: Summary
Summary • Continuing to successfully execute on strategy and deliver results o Fifth consecutive year of AUM growth o Adjusted base EBITDA increased for third straight year • Expanding energy-transition activities in all key business segments o New exchange-listed and active strategies to launch thi
Slide 14: Supplemental Financial Information
Supplemental Financial Information
Slide 15: Revenues
Revenues 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2022 2021 2022 2021 Management fees 28.4 27.8 115.4 103.9 Trailer, sub-advisor and fund expenses (1.2) (0.9) (4.6) (2.7) Direct payouts (1.1) (1.4) (4.9) (5.3) Carried interest and performance fees 1.2 4.3 3.3 12.2 Carried interest an
Slide 16: Expenses
Expenses 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2022 2021 2022 2021 Compensation 17.0 20.6 77.1 76.7 Direct payouts (1.1) (1.4) (4.9) (5.3) Carried interest and performance fee payouts - internal (0.6) (2.5) (1.6) (7.2) Commission expense - internal (1.6) (4.1) (9.1) (15.5) Severan
Slide 17: EBITDA reconciliation
EBITDA reconciliation 3 months ended 12 months ended In millions $ Q4 Q4 Q4 Q4 2022 2021 2022 2021 Net Income 7.3 10.2 17.6 33.2 Adjustments: Interest expense 1.1 0.2 2.9 1.2 Provision for income taxes 2.4 3.4 7.4 12.0 Depreciation and amortization 0.7 1.1 3.4 4.6 (1) EBITDA 11.5 14.9 31.4 50.9 Othe