Fiera Capital Corporation Class A · TSX:FSZ
Fiera Capital Corporation Class A — Q4 2022 Earnings Presentation
39 slides from Fiera Capital Corporation Class A's earnings presentation, Feb 24, 2023
Slide 1: Q4 2022 Results
February 24, 2023 Q4 2022 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 Chief Executive Officer Lucas Pontillo Executive Director and Global Chief Financial Officer 3
Slide 4: Topics for Discussion
Topics for Discussion Q4 2022 Highlights Distribution Performance Investment Platform ▪ Private Markets ▪ Public Markets Financial Performance 4
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights $0.2B increase ( 0.1%) in Q4 2022 quarter over quarter AUM - $158.5B ▪ Challenged equity and fixed income markets with pressure in flows leading to decrease in AUM for Public Markets year-over year ( 18.6%) December 31, 2022 ▪ Private Markets increased $2.3B ( 14.5%) year-over-
Slide 6: AUM Overview
AUM Overview QoQ ($B) Private Markets Public Markets ▪ AUM up $0.2B, or 0.1% ▪ Market appreciation driven by rebound in equities in the quarter ▪ Negative net organic growth driven by lost mandates from Financial Intermediaries clients YoY ($B) Private Markets Public Markets ▪ AUM down $29.8B, or 15
Slide 7: AUM Flows Across Platform and Geography
AUM Flows Across Platform and Geography – QoQ Q4 2022 Canada ($B) Private Markets ($B) - United States ($B) Public Markets ($B) Europe & Asia ($B) 13. Subtotals and totals may not reconcile due to rounding. 1Market and Other includes the impact of market changes, income distributions and FX. 7
Slide 8: Institutional Highlights
Institutional Highlights Q4 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Positive net organic growth of $0.4B from new fixed income mandates in Public Markets ▪ Strong momentum coming from $0.2B in wins for multiple Private Markets strategies including Private Equity and Private Credit U.S.
Slide 9: Financial Intermediaries Highlights
Financial Intermediaries Highlights Q4 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Net organic growth in Public Markets impacted by outflows from fixed income strategies U.S. ▪ Net organic growth in Public Markets impacted by outflows from equity mandates Europe & Asia Base Management Fees
Slide 10: Private Wealth Highlights
Private Wealth Highlights Q4 2022 Highlights QTD AUM Flows In C$ billions Canada ▪ Modest growth in Q4 driven by mandates in Public Markets and in Private Markets private equity strategies U.S. ▪ US Private Wealth had modest withdrawals in Q4 from Public Markets strategies Base management fees Base
Slide 11: 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 $5.9B, or 48%, since December 31, 2019 → 3-yr CAGR of 14% $0.5B of subscriptions received in Q4 2022 an
Slide 12: Investment Performance Update
Investment Performance Update1 Select Private Markets Investment Strategies Return2 Gross IRR3 1-YR Q4 2022 Absolute (since inception) Absolute Return4 Return4 Real Estate Fiera Real Estate CORE Fund L.P. 9.51% - (2.35%) 11.92% Fiera Real Estate Industrial Fund 15.85% - 0.76% 21.14% Infrastructure E
Slide 13: Investment Performance Update
Investment Performance Update Key Public Market Q4 2022 1-Year 3-Year Investment Strategies1 Added Added Added Return Return Return value Value Value Equity Investment Strategies Atlas Global Companies 7.92% (0.32%) (21.30%) (9.10%) 10.10% 3.61% Global Equity 10.92% 2.68% (11.88%) 0.31% 9.60% 3.11%
Slide 14: Percentage of Public Markets Assets Outperforming
Percentage of Public Markets Assets Outperforming at Quarter-End Fixed Income One Year Three Years Five Years Equity One Year Three Years Five Years Percentages exclude AUM in segregated accounts managed on behalf of private wealth clients, discretionary accounts, Asia-based accounts and accounts fo
Slide 15: Total Revenues
Total Revenues ($M) - - - - - - Subtotals and totals may not reconcile due to rounding. Q4 2022 Total Revenues of $184.7M, $57.2M, or (23.6%), compared to Q4 2021 ▪ Mainly from Public Markets revenues ( $51.8M), partly offset by Private Markets revenues ( $4.2M) Q4 2022 Base Management fees of $
Slide 16: Private Markets Revenues
Private Markets Revenues ($M) Subtotals and totals may not reconcile due to rounding. Q4 2022 Base management fees of $41.7M, $7.4M, or 21.6%, compared to Q4 2021 ▪ Additional capital deployment and market appreciation across the majority of strategies • Q4 2022 Commitment and transaction fees of $
Slide 17: Public Markets Revenues
Public Markets Revenues ($M) - - - - - - Subtotals and totals may not reconcile due to rounding. Q4 2022 Base management fees of $105.7M, $22.6M, or 17.6%, compared to Q4 2021 ▪ Due to a reduction in AUM from unfavourable equity and fixed income market impacts and negative net organic growth Q4 20
Slide 18: Selling, General and Administrative Expenses
Selling, General and Administrative Expenses (“SG&A”) QoQ ($M) SG&A excl. SBC Total Revenues ▪ SG&A excluding share-based compensation (“SBC”) increased by $16.6M, or 14.4%, in Q4 2022 vs Q3 2022 15.0% ▪ Increase in line with the increase in revenues, driven 14.4% by higher sub-advisory fees and
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1 and Adjusted EBITDA Margin1 LTM Adjusted EBITDA Margin stable through a volatile 2022 Quarterly Last Twelve Months 1Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA and Adjusted EBITDA per share, Adjusted net earnings and Adjusted net earnings
Slide 20: Net Earnings and Adjusted Net Earnings
Net Earnings1 & Adjusted Net Earnings1,2 Reconciliation of Q4 2022 Adjusted net earnings1,2 ($M) $0.02 per share basic $0.32 per share basic $0.02 diluted $0.32 diluted 1Attributable to the Company’s shareholders 2Earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBIT
Slide 21: Per Share Metrics
Per Share Metrics ($ per share) 1Earnings 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 prescribed by IFRS. These non-IFRS measures
Slide 22: LTM Free Cash Flow
LTM Free Cash Flow LTM free cash flow1 relative to LTM dividends paid ($M) ▪ LTM free cash flow of $58.9M in Q4 2022, compared to $135.0M in Q4 2021 ▪ Decrease primarily due to increase in cash used to settle PPO and put liabilities and a decrease in cash from operating activities 1LTM Free Cash Flo
Slide 23: Financial Leverage Ratios
Financial Leverage Ratios Funded Debt Ratio at 2.37x Total Debt vs. Net Debt1 ($M) Funded Debt2 ($M) Leverage Ratios Net Debt3 Funded Debt4 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 c
Slide 24: Returning Value to Shareholders
Returning Value to Shareholders $22.1M Returned to Shareholders in Q4 2022 Renewal of the NCIB on August 11, 2022, allowing for the purchase for cancellation of Normal Course Issuer up to 4,000,000 Class A subordinate voting shares (“Class A Shares”) over the twelve- Bid (“NCIB”) month period ending
Slide 25: Progress on Our Strategy in 2022
Progress on Our Strategy in 2022 Private Markets AUM of $18.2B as at Dec 31; 3-year revenue CAGR of 20% New subscriptions of $0.5B, with $0.8B of capital deployed in Q4 2022 Growing Private ▪ Undeployed capital of $1.9B provides strong pipeline for future investment Markets opportunities An increasi
Slide 26: Appendix: Who We Are
<> FIERACAPITAL APPENDIX Who We Are
Slide 27: 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 28: 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 29: What Being an Efficient Allocator of Capital Means
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 30: 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$158.5 billion1 SYMBOL (TSX) FSZ.TO 3rd 67th 147th MARKET CAP C$890.9 million4 Canada2 North America3 Global3 Leading, independent asset management firm with a growing global presence an
Slide 31: Growing our Portfolio Through a Competitive Investment Offering
Growing our Portfolio Through a Competitive Investment Offering AUM ($B) LTM Revenues ($M) 1 1 1Data presented excludes recent dispositions. See Glossary on page 37 for details. 31 31
Slide 32: AUM by Segments
AUM by Segments AUM as at December 31, 2022 – $158.5B By Geography By Distribution Channel By Asset Class Canada 68% Institutional 53% Public Markets – 47% Equity U.S. 21% Financial intermediaries 38% Public Markets – 41% Europe and Asia 11% Private wealth 9% Fixed income Private markets 12% Liquid
Slide 33: Revenue Diversification
Revenue Diversification Q4 2022 Total Revenues – $184.7M By Geography By Distribution Channel By Asset Class Canada 60% Institutional 51% Equity 54% U.S. 19% Financial intermediaries 30% Fixed income 11% Europe and Asia 21% Private wealth 16% Private markets 34% Other1 3% Liquid alternatives 1% and
Slide 34: Expanding our Global Footprint
Expanding our Global Footprint 856 employees INCLUDING SOME 229 INVESTMENT PROFESSIONALS Calgary Halifax London Toronto Montreal Frankfurt Boston Dayton New York Hong Kong Singapore As at December 31, 2022 34 34
Slide 35: Our Responsible Investment Journey
Our Responsible Investment Journey Further enhancement Foundation & Promotion Further Promotion & Transparency & & creation of new Increasing the capabilities Advocacy solutions 2002 2009 2014 2016 2017 2018 2019 2020 2021 2022 ▪ Established Proxy Voting Policy prior to the ▪ Subscribed to MSCI ESG
Slide 36: 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 $6.5B Real Estate $75.3B1 Small Cap, Emerging and Frontier Strategies $5.5B Private Debt $140.3B Canadian Active Universe Strategies $1
Slide 37: 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 38: Thank You
Thank You Investor Relations contacts: Marie-France Guay Senior Vice President, Treasury and Investor Relations mguay@fieracapital.com T 514 294-5878 38
Slide 39: 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