Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q3 2023 Earnings Presentation
37 slides from Fiera Capital Corporation Class A's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Results
November 8, 2023 Q3 2023 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 and Fiera Capital Corporation’s (the “Company” or “F
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 2023 Highlights Commercial Performance Investment Performance ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q3 2023 Highlights
Q3 2023 Highlights AUM - $155.3B AUM in Q3 2023 decreased $8.9B quarter over quarter ▪ Public Markets AUM ( 6.0%), primarily from negative market returns and an outflow of mandates, primarily on September 30, AUM sub-advised by PineStone 2023 ▪ Private Markets AUM relatively flat, with new mandates
Slide 6: AUM Overview
AUM Overview QoQ ($B) Private Markets Public Markets ▪ AUM down $8.9B or 5.4% to $155.3B ▪ Unfavourable market impact of $4.5B and negative net organic growth of $3.7B, primarily stemming from outflows on AUM sub-advised by PineStone of $3.1B, which includes $1.1B that transferred directly, $1.8B of
Slide 7: AUM Flows Across Platform and Geography – QoQ Q3 2023
AUM Flows Across Platform and Geography – QoQ Q3 2023 Private Markets ($B) Canada ($B) - Public Markets excluding PineStone3 ($B) United States ($B) PineStone3 ($B) Europe & Asia ($B) 13. Subtotals and totals may not reconcile due to rounding. 1Net contributions in Private Markets includes return of
Slide 8: Commercial Highlights: Institutional and Financial Intermediaries
Commercial Highlights QTD AUM Flows Base Management Fees In C$ billions In C$ millions Institutional Financial Intermediaries Public Markets Private Markets Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. 2
Slide 9: Commercial Highlights – cont’d: Private Wealth
Commercial Highlights – cont’d QTD 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. Q3 2023 Highlights Institutional Financial Intermediaries Private Wealth ▪ On a year-over-year basis,
Slide 10: Private Markets – A Catalyst for Growth
Private Markets – A Catalyst for Growth AUM1 ($B) LTM Total Revenues ($M) Subtotals and totals may not reconcile due to rounding. Revenue growth of Private Markets surpassing its AUM growth AUM up $5.4B, or 40%, since September 30, 2020 → 3-yr CAGR of 12% $0.2B of subscriptions received in Q3 2023 a
Slide 11: Investment Performance Update: Select Private Markets Investment Strategies
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q3 2023 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 8.94% - 0.57% (1.05)% Fiera Real Estate Small Cap Industrial Fund L.P. 15.28% - 1.28% 7.72% Inf
Slide 12: Investment Performance Update
Investment Performance Update Key Public Market Q3 2023 1-Year 3-Year 5-year Investment Strategies1 Added Added Added Added Return Return Return Return Value Value Value Value Equity Investment Strategies Atlas Global Companies (4.45%) (3.08%) 16.79% (3.21)% 4.12% (4.40%) 10.71% 2.49% Global Equity
Slide 13: Percentage of Public Markets Assets Outperforming at Quarter-End
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia -based accounts and accounts f
Slide 14: Total Revenues
Total Revenues ($M) - Subtotals and totals may not reconcile due to rounding. Q3 2023 Total Revenues of $159M, $2M, or 1.2%, compared to Q3 2022 ▪ increase in base management & performance fees were more than offset by lower commitment fees and share of earnings in JV Q3 2023 Base Management fees
Slide 15: Public Markets Revenues
Public Markets Revenues ($M) - - Subtotals and totals may not reconcile due to rounding. Q3 2023 Base management fees of $103M, $4M, or 3.6%, compared to Q3 2022 ▪ Decreases primarily due to lower average AUM, mainly from lost mandates sub-advised by PineStone Q3 2023 Performance fees of $1M, $1
Slide 16: Private Markets Revenues
Private Markets Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q3 2023 Base management fees of $45M, $6M, or 14.7%, compared to Q3 2022 ▪ Largely driven by higher AUM in our Real Estate, Agriculture and Infrastructure strategies Q3 2023 Commitment and transaction fees of $2M
Slide 17: Selling, General and Administrative Expenses (“SG&A”)
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues ▪ SG&A excluding share-based compensation (“SBC”) was relatively flat when comparing Q3 2023 vs Q2 2023 0.7% ▪ Marginal increase in Q3 2023 due to 0.4% higher compensation costs offset by lower sub- advi
Slide 18: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 Quarterly Last Twelve Months 1Earnings before interest, taxes, depreciation and amortization (EBITD A), Adjusted EBITD A and Adjusted EBITD A per share, Adjusted net earnings and Adjusted net earnings per share (adjusted EPS) are not standardized measures
Slide 19: Net Earnings & Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q3 2023 Adjusted net earnings1,2 ($M) $0.10 per share basic $0.22 per share basic $0.09 diluted $0.18 diluted 1Attributable to the Company’s shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITD A), Adjusted EBI
Slide 20: Per Share Metrics
Per Share Metrics ($ per share) 1Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITD A and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings per share (adjusted EPS) are not standardized measures prescribed by IFRS. These non-IFRS measures
Slide 21: LTM Free Cash Flow relative to LTM dividends paid
LTM Free Cash Flow LTM Free Cash Flow1 relative to LTM dividends paid ($M) ▪ LTM Free Cash Flow of $98M in Q3 2023, compared to $45M 98 in Q2 2023, due to 88 higher operating cash flow ▪ Average LTM Free Cash Flow continuing to exceed average LTM dividends paid over last 10 quarters 1LTM Free Cash F
Slide 22: Financial Leverage Ratios
Financial Leverage Ratios Total Debt vs. Net Debt1,5 ($M) Funded Debt2 ($M) Leverage Ratios 1Represents 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. 2Represents gr
Slide 23: Progress on Our Strategy in 2023
Progress on Our Strategy in 2023 Private Markets AUM $18.8B as at Q3 2023; 3-year LTM revenue CAGR of 16% Growing Private New subscriptions of $0.2B, with $0.5B of capital deployed in Q3 2023 Markets ▪ Undeployed capital of $1.5B provides strong pipeline for future opportunities An increasing share
Slide 24: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 25: 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 26: 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 ESG Solving for specific needs of our
Slide 27: 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 28: A Values-Driven, Leading Independent Asset Manager
Fiera Capital A Values-Driven, Leading Independent Asset Manager FOUNDED 2003 ASSET MANAGER RANKING (by AUM) AUM C$155.3 billion1 SYMBOL (TSX) FSZ.TO 3rd 69th 164th MARKET CAP C$590.7 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence an
Slide 29: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1Data presented excludes dispositions. See Glossary on page 35 for details. 29 29
Slide 30: AUM by Segments
AUM by Segments AUM as at September 30, 2023 – $155.3B By Geography By Distribution Channel By Asset Class Canada 69% Institutional 54% Public Markets – 47% Equity U.S. 20% Financial intermediaries 37% Public Markets – 41% Europe and Asia 11% Private wealth 9% Fixed income Private markets 12% Liquid
Slide 31: Revenue Diversification
Revenue Diversification Q3 2023 Total Revenues – $158.7M By Geography By Distribution Channel By Asset Class2 Canada 65% Institutional 51% Equity 55% U.S. 21% Financial intermediaries 29% Fixed income 16% Europe and Asia 14% Private wealth 17% Private markets 29% Other1 3% Liquid alternatives <1% an
Slide 32: Expanding our Global Footprint
Expanding our Global Footprint 837 employees INCLUDING SOME 221 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at September 30, 2023 32 32
Slide 33: 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. 33
Slide 34: 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 $73.0B1 Small Cap, Emerging and Frontier Strategies $5.3B Private Debt Canadian Active Universe Strategies $136.6B $1
Slide 35: Glossary
Glossary AUM Organic Flows: Gross - Represents new mandates in Public Markets, and new subscriptions, including committed, undeployed capital in Private Markets Net - Represents the sum of: new mandates in Public Markets; new subscriptions, including committed, undeployed capital in Private Markets;
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