Affiliated Managers Group, Inc. · NYSE:AMG
Affiliated Managers — Investor Presentation (June 2016)
25 slides from Affiliated Managers's investor presentation, June 2016
Slide 1: Investor Overview Q1 2016
Investor Overview Q1 2016
Slide 2: AMG Overview
AMG Overview Business Highlights Key Facts Global, diversified asset management firm Founded: 1993 Unique, multi-faceted growth strategy Market Cap: $10 billion (S&P 500® / NYSE: AMG) Proprietary opportunity to partner with Assets Under Management: $700 billion additional top boutiques around the wo
Slide 3: Diverse Exposures Across Broad Array of Traditional and Alternative Strategies
Diverse Exposures Across Broad Array of Traditional and Alternative Strategies Given AMG’s strategic focus on the most attractive alpha-generating products, active equities and Traditional 24% alternatives account for virtually all of the 59% company’s ~$700 billion in AUM 11% Uniquely positioned ac
Slide 4: Strategic Focus on Alternatives and Active Equities
Strategic Focus on Alternatives and Active Equities Alternatives Global Equities U.S. Equities 41% 32% 15% Global quantitative specialist across Global quantitative specialist across Fundamental growth and alternative and traditional strategies alternative and traditional strategies relative value e
Slide 5: AUM is Diversified Across Regions, Channels and Products
AUM is Diversified Across Regions, Channels and Products Nearly half of AUM from clients domiciled outside the United States Institutional clients account for nearly two-thirds of AUM Over 70% of AUM in global equities and alternative strategies AMG’s AUM Contribution Client Location Distribution Ch
Slide 6: Global Distribution Platform Enhances Affiliate Reach
Global Distribution Platform Enhances Affiliate Reach AMG’s global distribution strategy provides high-quality marketing and client service resources in key international markets Complements Affiliate-level marketing and distribution with the scale and resources of a global asset management firm AMG
Slide 7: Long-Term Track Record of Organic Growth from Net Client Cash Flows
Long-Term Track Record of Organic Growth from Net Client Cash Flows AMG’s Affiliates have generated positive net flows in 22 of the last 24 quarters, including over $110 billion over the last five years – virtually all from return-oriented products AMG is well-positioned for continued strong organic
Slide 8: Largest Affiliates Drive Strong Long-Term Growth
Largest Affiliates Drive Strong Long-Term Growth Largest Affiliates generate approximately 75% of AMG’s EBITDA Investment AUM AUM Growth Affiliate Description Date ($ Billions) Since Investment Premier Global Value Manager 1997 18 247% Acclaimed Emerging Markets Equity Manager 2004 28 280% Leading S
Slide 9: New Investments Enhance Growth and New Product Opportunities
New Investments Enhance Growth and New Product Opportunities Since the global financial crisis, AMG has announced investments in 22 new Affiliates that have added approximately $240 billion in AUM across more than 200 new investment products Focus on leading firms which exhibit strong prospects in s
Slide 10: Successful Execution of Business Strategy
Successful Execution of Business Strategy Through the successful execution of its growth strategy, AMG has created a virtuous circle and is positioned to continue to build outstanding shareholder value going forward Distribution: Industry-leading net client cash flows over the last five years of mor
Slide 11: Strong Recurring Cash Flow and Flexible Balance Sheet
Strong Recurring Cash Flow and Flexible Balance Sheet Cash flow diversified in return-oriented assets across Affiliates, client channels, and geographies Recurring free cash flow from Affiliate quarterly distributions provides financial flexibility Significant capacity(1) and scale to fund accretive
Slide 12: AMG's Partnership Structure Generates Strong and Stable Recurring Free Cash Flows
AMG’s Partnership Structure Generates Strong and Stable Recurring Free Cash Flows Retained equity ownership by Affiliates ensures long-term focus, entrepreneurial culture, unique investment process Aligned Incentives Permanent structure incents growth, enhances stability Significant diversity
Slide 13: Outstanding Earnings Growth Through Excellent Execution
Outstanding Earnings Growth Through Excellent Execution Assets Under Management ($B) EBITDA ($MM) CAGR since 2000: 15.0% CAGR since 2000: 13.4% $628 $942 $820 $537 $320 $404 $184 $267 $78 $142 2000 2005 2010 2013 2015 2000 2005 2010 2013 2015 Economic Net Income ($MM) GAAP Net Income ($MM) CAGR sinc
Slide 14: AMG Earnings Growth vs. Peers and Market Indices
AMG Earnings Growth vs. Peers and Market Indices AMG has a consistent and long-standing track record of generating outstanding earnings growth in excess of that of its peer group, and relative to a broad range of market indices 1 Year 3 Year 5 Year 20% 20% 20% 10% 10% 10% 0% 0% 0% (10%) (10%) (10%)
Slide 15: Outstanding Track Record of Earnings Growth and Stability
Outstanding Track Record of Earnings Growth and Stability Strong long-term organic growth through investment performance and net client cash flows Diversified revenue stream provides balance to long-term growth and stability in varying markets Investment structure provides stability while retained o
Slide 16: Appendix
Appendix
Slide 17: Consolidated Statements of Income, Years Ending Dec. 31, 2013 – 2015
Consolidated Statements of Income, Years Ending Dec. 31, 2013 – 2015 Year Ended Year Ended Year Ended (in millions, except per share data) 12/31/13 12/31/14 12/31/15 Revenue $ 2,188.8 $ 2,510.9 $ 2,484.5 Operating expenses: Compensation and related expenses 947.5 1,030.5 1,027.7 Selling, general and
Slide 18: Consolidated Balance Sheets, Years Ended Dec. 31, 2014 and 2015
Consolidated Balance Sheets, Years Ended Dec. 31, 2014 and 2015 Year Ended Year Ended (in millions) 12/31/14 (E) 12/31/15 (E) Assets Cash and cash equivalents $ 550.6 $ 563.8 Receivables 425.9 391.2 Investments in marketable securities 172.6 199.9 Other investments 167.2 149.3 Fixed assets, net 95.4
Slide 19: Consolidated Statements of Cash Flows, Years Ending Dec. 31, 2013 – 2015
Consolidated Statements of Cash Flows, Years Ending Dec. 31, 2013 – 2015 Year Ended Year Ended Year Ended (in millions) 12/31/13 12/31/14 12/31/15 Cash flow from (used in) operating activities: Net income $ 669.6 $ 785.6 $ 833.7 Adjustments to reconcile Net income to net cash flow from operating act
Slide 20: Reconciliation of Performance Measures (Yearly)
Reconciliation of Performance Measures (Yearly) Year Year Year Ended Ended Ended (in millions, except per share data) 12/31/13 12/31/14 12/31/15 Net income (controlling interest) $ 360.5 $ 452.1 $ 516.0 Intangible amortization and impairments 148.9 121.0 118.4 Intangible-related deferred taxes 38.1
Slide 21: Reconciliation of Performance Measures (Quarterly)
Reconciliation of Performance Measures (Quarterly) Three Months Three Months Three Months Three Months Ended Ended Ended Ended (in millions, except per share data) 6/30/15 9/30/15 12/31/15 3/31/16 Net income (controlling interest) $ 128.7 $ 109.0 $ 150.3 $ 104.5 Intangible amortization and impairmen
Slide 22: AMG Affiliates: Total AUM of Approximately $697 billion
AMG Affiliates: Total AUM of Approximately $697 billion AUM as of 3/31/16, pro forma for pending investments. 22 |
Slide 23: Affiliate Investment Model Limits Exposure to Operating Leverage
Affiliate Investment Model Limits Exposure to Operating Leverage (1) Operating agreement provides operating autonomy to management partners, as well as allocates a fixed percentage of each year’s revenues into two segments, the Operating Allocation and the Owners’ Allocation. (2) The Operating Alloc
Slide 24: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed in this presentation, as well as oral statements made by AMG, may constitute forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations reg
Slide 25: Reconciliation of Performance Measures: Notes
Reconciliation of Performance Measures: Notes (A) Under our Economic net income (controlling interest) definition, we add to Net income (controlling interest) our share of intangible amortization (including equity method intangible amortization) and impairments, deferred taxes related to intangible
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