13 slides from Agf Management Limited Class B's earnings presentation, Mar 28, 2018
Slide 1: Earnings Conference Call First Quarter 2018
AGF Management Limited Earnings Conference Call First Quarter 2018 March 28th, 2018
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of March 28th, 2018. 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 securit
Slide 3: Conference Call Participants
Conference Call Participants Blake C. Goldring, CFA Chairman & Chief Executive Officer Kevin McCreadie, CFA President & Chief Investment Officer Adrian Basaraba, CPA, CA, CFA Senior Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 1st Quarter of Fiscal 2018 • Business Updates – Retail – Investment Management – Institutional – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q1 2018 Highlights
Q1 2018 Highlights Continued progress toward stated objectives AUM above median: Retail Mutual Fund Positive net sales Institutional 49% over 1 year of $20 million1 committed pipeline 61% over 3 years Unveiled new InstarAGF Essential Launched Infrastructure Fund AGFiQ two new approximately half mark
Slide 6: Line of Business Performance
Line of Business Performance ($ millions) Q1 2017 Q1 2018 Change Mutual funds 18,299 19,056 4% Institutional, Sub Advisory and ETF 10,960 11,545 5% Private Client 5,143 5,471 6% Alternatives 712 902 27% Total 35,114 36,974 5% 6
Slide 7: Retail Business Review
Retail Business Review1 Retail mutual fund net sales of $20 million in Q1 20181 Gross Sales Improvement2 AGF Mutual Fund Net Sales ($M)1 45% 20 9% (225) (311) 1 Industry AGF Q1 2016 Q1 2017 Q1 2018 (1) AGF gross and net sales adjusted to exclude non-recurring institutional net sales (redemptions) in
Slide 8: Investment Teams & Performance
Investment Teams & Performance 3 year investment performance target met for 2nd consecutive quarter AUM above median: Portfolios 49% positioned for client over 1 year concerns around Global bias risk, volatility, and remains intact 61% global diversification over 3 years 8
Slide 9: Financial Results – Summary
Financial Results – Summary Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q1-18 Q4-17 Q1-18 Q1-17 Unfav Unfav Revenue 110.9 120.9 (8.3%) 110.9 107.2 3.5% 1 Revenue (Adjusted) 110.9 110.9 0.0% 110.9 107.2 3.5% Continuing Operations SG&A 53.1 56.1 5.3% 53.1 50.4
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail (bps of average AUM) Q1-18 TTM Average AUM ($B)1 36.1 35.2 Average Mutual Fund 19.1 18.7 Average Institutional, Sub-Advisory, ETFs & 17.1 16.6 Private Client Revenue (bps)2 118 119 Less: Trailer Fees (bps) 36 36 SG&A (bps)3 61 62 EBITDA (bps)2,3 22 22 (1) Average AUM e
Slide 11: Capital & Liquidity
Capital & Liquidity Dividend payout ratio remains within an acceptable range 400% 20 21.6 350% 300% 15 16.4 250% ($ millions) 200% 10 150% 10.4 10.4 10.5 100% 5 50% 60% 60% 60% 38% 29% 0% - -50% Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Free cash flow Dividend % of free cash flow 11
Slide 12: 2018 Focus & Priorities
2018 Focus & Priorities Work towards Sustained consistent Grow sub- Leverage the Investment net sales in advisory and AGFiQ performance retail mutual institutional platform funds 12
Slide 13: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story