Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2024 Earnings Presentation
37 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Results
November 7, 2024 Q3 2024 Results
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains forward‐looking statements relating to future events or future performance and reflecting management’s expectations or beliefs regarding future events including business and economic conditions, outlook and trends and Fiera Capital Corporation’s
Slide 3: Conference Call Participants
Conference Call Participants Jean‐Guy Desjardins Chairman of the Board and Global Chief Executive Officer Lucas Pontillo Executive Director and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q3 2024 Highlights Commercial Performance Investment Performance Private Markets Public Markets Financial Performance 4
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights AUM – $165.5B AUM in Q3 2024 increased $6.6B quarter‐over‐quarter Public Markets AUM 4.5% to $146.0B, primarily from positive market returns, partly offset by net outflows from September 30, PineStone sub‐advised AUM 2024 Private Markets AUM 2.1% to $19.5B, primarily from
Slide 6: AUM Overview – Q3 2024
AUM Overview – Q3 2024 QoQ ($B) Private Markets Public Markets AUM up $6.6B or 4.2% Favourable market impact of $7.0B and positive net organic growth ex. PineStone of $0.2B Partly offset by PineStone net outflows of $0.5B YTD ($B) Private Markets Public Markets AUM up $3.8B or 2.4% Favourable
Slide 7: AUM Flows Across Platform – Q3 2024 QTD
AUM Flows Across Platform – Q3 2024 QTD Public Markets ($B) Public Markets excluding PineStone1 ($B) 1 PineStone1 ($B) Private Markets ($B) 1 Subtotals and totals may not reconcile due to rounding 1 Represents new mandates, lost mandates and net contributions from AUM sub‐advised by PineStone 2 Mark
Slide 8: AUM Flows Across Geography – QoQ
AUM Flows Across Geography – QoQ Canada ($B) United States ($B) ‐ EMEA ($B) Asia ($B) 13. 13. Subtotals and totals may not reconcile due to rounding 1 Market and Other includes the impact of market changes, income distributions and FX 8
Slide 9: Commercial Highlights – Financial Intermediaries
Commercial Highlights AUM Flows Base Management Fees In C$ billions In C$ millions Institutional Financial Intermediaries Public Markets Private Markets Subtotals and totals may not reconcile due to rounding 1 Market and Other includes the impact of market changes, income distributions and FX 2 For
Slide 10: Commercial Highlights – Private Wealth
Commercial Highlights – cont’d AUM Flows Base Management Fees In C$ billions In C$ millions Private Wealth Public Markets Private Markets Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. Q3 2024 Highlights I
Slide 11: Private Markets – Continuous growth trend
Private Markets – Continuous growth trend AUM1 ($B) LTM Total Revenues ($M) CAGR (+9%) 18.8 19.5 18.3 CAGR (+21%) 1.7 2.0 2.5 0.9 247.3 14.9 0.8 1.0 3.8 3.9 4.2 208.8 209.9 3.0 0.6 0.3 5.7 5.3 5.1 140.7 4.9 5.7 6.5 6.8 6.8 30‐Sep‐21 30‐Sep‐22 30‐Sep‐23 30‐Sep‐24 30‐Sep‐21 30‐Sep‐22 30‐Sep‐23 30‐Sep‐
Slide 12: Investment Performance Update – Private Markets
Investment Performance Update – Private Markets1 Return Gross IRR Q3 2024 1‐Year Select Private Markets Investment Strategies Since Since Absolute Absolute Inception2 Inception3 Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.23% ‐ 0.81% 1.05% Fiera Real Estate Small Cap Industrial Fu
Slide 13: Investment Performance Update – Public Markets
Investment Performance Update – Public Markets1 Q3 2024 1‐year 3‐year 5‐year Key Public Markets Investment Value Value Value Value Strategies Returns Added Returns Added Returns Added Returns Added Large Cap Equity Atlas Global Companies 6.13% 1.12% 21.22% (11.11%) 3.71% (7.73%) 12.63% (0.87%) Globa
Slide 14: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter‐End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia‐based accounts and accounts fo
Slide 15: Total Revenues
Total Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q3 2024 Total Revenues of $172M, $13M, or 8%, compared to Q3 2023 Driven by 17% growth in Private Markets revenues and 4% growth in revenues from Public Markets Q3 2024 Base Management fees of $154M, $7M, or 5%, compar
Slide 16: Public Markets Revenues
Public Markets Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q3 2024 Total Revenues of $111M, $5M, or 4%, from Q3 2023 Q3 2024 Base management fees of $107M, $4M, or 4%, compared to Q3 2023 Increase driven by higher revenues from Intermediary clients in the US and growt
Slide 17: Private Markets Revenues
Private Markets Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q3 2024 Total Revenues of $60M, $9M, or 17%, compared to Q3 2023 Q3 2024 Base management fees of $48M, $3M, or 7%, compared to Q3 2023 Increase due to higher average AUM from new subscriptions, primarily by I
Slide 18: Selling, General and Administrative Expenses (SG&A)
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues SG&A excluding share‐ based compensation (“SBC”) essentially flat quarter‐over‐quarter Higher variable compensation and revenue 4.2% related expenses offset by a 0.4% reduction in professional fees,
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months 1 Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (adjusted EPS) are not standardized measures p
Slide 20: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q3 2024 Adjusted Net Earnings1,2,3 ($M) $0.12 per share basic $0.27 per share basic $0.11 per share diluted $0.25 per share diluted 1 Attributable to the Company’s shareholders 2 Earnings before interest, taxes, depreciation and amortization
Slide 21: Per Share Metrics
Per Share Metrics ($ per share) 1 Adjusted EBITDA per share and Adjusted net earnings per share (Adjusted EPS) are not standardized measures prescribed by IFRS. These non‐IFRS measures do not have any standardized meaning and may not be comparable to similar measures presented by other companies. Th
Slide 22: LTM Free Cash Flow
LTM Free Cash Flow LTM Free Cash Flow1 relative to LTM dividends paid ($M) LTM Free Cash Flow1 decreased to $95M from $98M in Q3 2023, but remains above LTM dividends paid Improvement in LTM Free Cash Flow1 in 2024 as one‐time events roll off and no longer impact LTM calculation 1 LTM Free Cash
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Total Debt vs. Net Debt1,5 ($M) Funded Debt2 ($M) Leverage Ratios 1 Represents the carrying amounts of long‐term debt and debentures, net of cash and cash equivalents, as reported in the statement of financial position in the consolidated financial statements 2 Represents g
Slide 24: Progress on Our Strategy in 2024
Progress on Our Strategy in 2024 Private Markets AUM 3‐year CAGR of 9% and LTM revenue 3‐year CAGR of 21% New subscriptions of $400M in Q3 2024 and $1.4B YTD; $300M capital deployed in Q3 2024 Growing Private Markets Committed, undeployed capital of $1.4B provides strong pipeline for future opport
Slide 25: Appendix: Who We Are
Qa FIERACAPITAL APPENDIX Who We Are
Slide 26: Fiera Capital Statement of Purpose
Fiera Capital Statement of Purpose World‐class portfolio of high conviction, sophisticated investment capabilities: We are committed to delivering investment excellence across our range of public and private market strategies, which are underpinned by independence of perspective, disciplined process
Slide 27: Progressing our Mission and Purpose
Progressing our Mission and Purpose “We are passionate about creating innovative investment solutions by being efficient allocators of capital with the objective of fostering sustainable prosperity for all our stakeholders.” EFFICIENT CAPITAL ALLOCATOR Solutions Sustainability Solving for specific n
Slide 28: What Being an Efficient Allocator of Capital Means for Fiera Capital
What Being an Efficient Allocator of Capital Means for Fiera Capital We allocate capital efficiently … … To construct optimized portfolios to deliver on client outcomes. 1 Our focus is on delivering the specific risk/return outcome the client needs with the highest probability of success. … To offer
Slide 29: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values‐Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by Total Assets) AUM C$165.5 billion1 SYMBOL (TSX) FSZ.TO 3rd 61st 166 th MARKET CAP C$892.9 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global p
Slide 30: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1 Excludes dispositions. The Company's strategic activity during fiscal 2021 included various dispositions. For comparative purposes, the Company has provided information on the impact of these disposition
Slide 31: AUM by Segments
AUM by Segments AUM as at September 30, 2024 – $165.5B By Geography By Distribution Channel By Asset Class Canada 67% Institutional 55% Public Markets – 48% Equity U.S. 22% Financial Intermediaries 36% Public Markets – 40% EMEA 8% Private Wealth 9% Fixed income Private Markets 12% Asia 3% Liquid alt
Slide 32: Revenue Diversification
Revenue Diversification Q3 2024 Total Revenues – $171.7M By Geography By Distribution Channel By Asset Class2 Canada 64% Institutional 51% Equity 56% U.S. 20% Financial Intermediaries 28% Fixed income 13% EMEA 13% Private wealth 16% Private Markets 30% Asia 3% Other1 4% Liquid alternatives <1% and o
Slide 33: Expanding our Global Footprint
Expanding our Global Footprint 860 employees INCLUDING SOME 225 INVESTMENT PROFESSIONALS Calgary Halifax London The Hague Toronto Montreal Frankfurt Dayton Boston Zurich New York Hong Kong Abu Dhabi Singapore As at September 30, 2024 33 33
Slide 34: Our Sustainable Investing Journey & Commitments
Our Sustainable Investing Journey & Commitments We recognize and adhere to several responsible business codes of conduct, along with internationally recognized standards for due diligence and reporting. 34
Slide 35: Breadth of Innovative Investment Solutions
Breadth of Innovative Investment Solutions ASSET ALLOCATION BALANCED MANDATES OVERLAY STRATEGIES ADVISORY Public Markets Private Markets Large Cap Equity Strategies $6.8B Real Estate $79.7B1 Small Cap, Emerging and Frontier Strategies $5.0B Private Debt Canadian Active Universe Strategies $146.0B LD
Slide 36: Important Disclosures
Important Disclosures Fiera Capital Corporation is a global asset management firm with affiliates in various jurisdictions (collectively, “Fiera Capital”). The information and opinions expressed herein are provided for informational purposes only. It is subject to change and should not be relied upo
Slide 37: Thank You
Thank You Investor Relations contact: Marie‐France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294‐5878