26 slides from Fiera Capital Corporation Class A's earnings presentation, Mar 19, 2020
Slide 1: Q4 2019 Results
March 19, 2020 Q4 2019 Results JEAN-GUY DESJARDINS Chairman of the Board and Chief Executive Officer VINCENT DUHAMEL Vice Chairman of the Board LUCAS PONTILLO Executive Vice President and Global Chief Financial Officer JEAN-PHILIPPE LEMAY Global President and Chief Operating Officer Chair of the Glo
Slide 2: Forward-Looking Statements
Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera Capital") objectives, strategies
Slide 3: Q4 2019 Highlights
Q4 2019 Highlights Q4 2019 Adjusted EPS of $0.42 (basic); $0.41 (diluted) ▪ Q4 2018 Adjusted EPS of $0.29 (basic and diluted) Net organic inflows in Q4 2019 and 2019 December 31, 2019 AUM of $169.7 billion ▪ 24% increase from December 31, 2018 AUM of $136.7 billion ▪ 3% increase from September 30, 2
Slide 4: AUM of $169.7B as at December 31, 2019
AUM of $169.7B as at December 31, 2019 AUM up $5.0B from end of Q3 2019 Q4 2019 growth (in $ millions) $4.7B in gross new clients in Q4 2019 ▪ New global equity mandates won in Europe and the United States contributed $2.8B ▪ Partly offset by lost mandates in lower fee strategies $4.8B from market a
Slide 5: Operations Overview
Operations Overview Canada U.S. Strong investment performance across fixed Strong investment performance income and equity strategies ▪ Most fixed income strategies beat their ▪ Global and international equity and small benchmarks cap strategies performing exceptionally well Bel Air AUM continues to
Slide 6: Revenue Trend
Revenue Trend Revenue (in $ millions) Last twelve months Quarterly 6
Slide 7: Average LTM BPS Evolution vs AUM
Average LTM BPS Evolution vs AUM1 Q4 2019 average: 37.6 bps 1) Average basis points calculated as a function of base management fees. 7
Slide 8: Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA1,2 and Adjusted EBITDA Margin1,2 Quarterly Last twelve months Adoption of Adoption of IFRS 162 IFRS 162 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
Slide 9: Reconciliation of Net Earnings to Adjusted Net Earnings
Reconciliation of Net Earnings1 to Adjusted Net Earnings1,2 (in $ millions) Q4 2019 1 1,2 3 1) Attributable to the Company’s shareholders 2) Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and adjusted EBITDA per share, adjusted net earnings and adjusted net
Slide 10: Optimizing the Capital Structure and Improving the Resilience of the Balance Sheet
Optimizing the Capital Structure and Improving the Resilience of the Balance Sheet Cash and cash equivalents of $96.2M as at December 31, 2019 ▪ Up over $8M from September 30, 2019 ▪ Drawn portion of the credit facility lowered by over $30M in Q4 2019 Cash flows from operating activities of $149.8M
Slide 11: Alternative Investments
Alternative Investments Total alternative LIQUID PRIVATE investment strategies as at December 31, 2019 1 $14.8B1 (in $ billions) (in $ billions) FIERA PRIVATE ALTERNATIVE INVESTMENTS AUM $12.0B As at December 31, 2019, total committed, undeployed capital of: >$1.4B 1 11 1) Includes $1.0B of infrastr
Slide 12: Investment Performance Update
Investment Performance Update 5-year 93% of fixed income strategies beat their respective benchmarks performance update 82% of equity strategies beat their respective benchmarks FIXED INCOME 12-month ▪ Most strategies generated positive absolute results; majority of teams exceeded performance the re
Slide 13: Outlook
Outlook Economic impact of COVID-19 likely to be significant ▪ Duration and magnitude difficult to predict Central banks responding with monetary stimulus ▪ Fiscal response starting to develop across countries to support economic growth as well as emergency spending to support the health system Rela
Slide 14: Question Period
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Slide 15: Appendix A: Additional Financial Information
Appendix A Additional Financial Information 15
Slide 16: Year-over-Year AUM Growth
Year-over-Year AUM Growth (in $ millions) Acquisitions 80% interest in Palmer Capital Partners (~$740M) – closed April 2019 IAM (~2.0B) – closed July 2019 Fiera Investments (~$1.8B) – closed July 2019 Foresters (~$11.2B) – closed August 2019 16
Slide 17: AUM and Revenues Breakdown by Geography
AUM and Revenues Breakdown – by Geography AUM as of December 31, 2019 2019 revenues Canada 57% Canada 50% U.S. 29% U.S. 33% Europe and other 14% Europe and other 17% 50% of 2019 revenues were generated outside Canada, compared to 30% in 2015 17
Slide 18: Appendix B: Investment Performance
Appendix B Investment Performance 18
Slide 19: Investment Performance: Fixed Income
Investment Performance (December 31, 2019) Traditional Strategies – Fixed Income Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) FIXED INCOME Integrated Fixed Income Credit 8.49 0.43 4.09 0.32 2012 FTSE
Slide 20: Investment Performance: Balanced and Equity
Investment Performance (December 31, 2019) Traditional Strategies – Balanced and Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) BALANCED Balanced Core 17.73 2.09 7.99 1.46 1984 Balanced Core Ble
Slide 21: Investment Performance: Equity
Investment Performance (December 31, 2019) Traditional Strategies – Equity Annualized Rates of Return 5 YEARS OR BENCHMARK 1 YEAR INCEPTION YEAR SINCE INCEPTION1 NAME Return (%) Added Value (%) Return (%) Added Value (%) EQUITY INVESTMENT STRATEGIES Apex Large Cap Growth2 36.26 -0.13 14.71 0.08 2007
Slide 22: Investment Performance: Liquid Alternative Strategies
Investment Performance (December 31, 2019) Liquid Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) North American Market Neutral Fund 4.56 2.87 2007 Absolute Return Long / Short Equity Fund 9.78 4.78 2010 Absolut
Slide 23: Investment Performance: Private Alternative Strategies
Investment Performance (December 31, 2019) Private Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) PRIVATE DEBT Diversified Lending Fund 7.86 6.75 2008 Absolute Return Global Diversified Lending Master Fund, L.P
Slide 24: Investment Performance: Private Alternative Strategies
Investment Performance (December 31, 2019) Private Alternative Strategies Annualized Rates of Return 5 YEARS OR INCEPTION BENCHMARK 1 YEAR SINCE INCEPTION1 YEAR NAME Return (%) Return (%) REAL ESTATE Fiera Real Estate CORE Fund L.P. 8.57 7.98 2013 Absolute Return Fiera Real Estate Small Cap Industri
Slide 25: Mariem Elsayed
Mariem Elsayed Director, Investor Relations and Public Affairs melsayed@fieracapital.com T 514 954-6619 25
Slide 26: fiera.com
fiera.com > FIERA