20 slides from Agf Management Limited Class B's earnings presentation, Jan 22, 2025
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2024
AGF Management Limited Earnings Conference Call Fourth Quarter 2024
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of January 22, 2025. Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information within the meaning of securit
Slide 3: Conference Call Participants
Conference Call Participants Presenting Kevin McCreadie, CFA, MBA Chief Executive Officer & Chief Investment Officer Ken Tsang, CFA, CPA, MBA Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Head of Global Distribution Ash Lawrence, MBA Head of AGF Capi
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 4th Quarter and Fiscal 2024 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Fiscal 2024 Highlights
Fiscal 2024 Highlights AGF continued to make progress against strategic objectives Assets1 of 2024 Adjusted EBITDA of Adjusted Diluted $53.6 billion $166.4 million EPS of $1.67 27% higher year over 26% higher year over 25% higher than prior year year year $341 million Strong Financial Strategic in s
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 AUM increase across all lines of business ($ millions) Q4 2024 Q4 2023 Change AGF Investments3 Mutual funds 30,662 24,459 25% ETFs and SMA 2,537 1,465 73% Segregated accounts and sub-advisory 6,977 6,774 3% AGF Private Wealth3 8,567 7,341 17% AGF Cap
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review Net redemptions have stabilized for the industry and AGF Gross Sales Net Sales 3 8 Industry Sales 70 76 72 80 75 45 50 48 49 ($B)1 (9) (16) (19) (28) (33) (4) (4) Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 227 19 14 76 77 AGF Retail 982 1,012 993 914 934 Mutual
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to show strong growth YoY 2,537 CAGR +43% 1,465 1,236 Q4 2022 Q4 2023 Q4 2024 Closing AUM ($M) 8
Slide 9: AGF Capital Partners
AGF Capital Partners A diversified platform of specialized alternative asset managers AGF Capital Partners1 is AGF’s multi-boutique alternatives business with diverse capabilities across both private assets and alternative strategies. Clients benefit from the specialized investment expertise of Affi
Slide 10: Adjusted Financial Results
Adjusted Financial Results1,2 Favourable comparative results supported by traditional business Consolidated Adjusted Results Sequential Quarter Year over Year ($ millions, except per share amounts) Q4 2024 Q3 2024 Variance FY2024 FY2023 Variance Total Adjusted Net Revenue3 105.8 99.8 6% 405.7 338.1
Slide 11: Adjusted Financial Results Split
Adjusted Financial Results1,2 Split Year over year improvement across traditional business Traditional Asset and Wealth Management Sequential Quarter Year over Year ($ millions, except per share amounts) Q4 2024 Q3 2024 Variance FY2024 FY2023 Variance Net management, advisory and admin fees3 83.6 78
Slide 12: Q4 Adjusted EBITDA
Q4 Adjusted EBITDA1 Adjusted EBITDA excludes non-cash acquisition related expenses Q4 Adjusted EBITDA bridge ($ millions) Associated Q4 Balance Sheet items ($M): Net Contingent Consideration (2) $11.4 0.2 Put Option Liability $33.0 (0.8) LLTIP Accrual $13.4 2.0 (1.7) 39.6 3.0 36.9 Reported EBITDA Se
Slide 13: 2025 SG&A Guidance
2025 SG&A Guidance1 Includes an additional quarter of consolidating KCPL 2024 Guidance to 2025 SG&A Guidance Bridge ($M) +3% 245 7 239 238 1 7 6 11 227 2024 SG&A 2024 Inflation 2024 Adj. Performance Additional 2025 Baseline 3% inflation 2025 SG&A Guidance Performance and Other SG&A Actuals reset for
Slide 14: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Higher net mgmt. fee bps offset by higher adjusted SG&A Sequential Quarter TTM Average AUM and Bps Detail Q1 2024 to (Average AUM, $ billions) Q4 2024 Q3 2024 Q4 2024 Average AUM excl. AGF Capital Partners ($B)3 46.6 43.9 43.8 Average Mutual Fund 29.2 27.5 27.1 Aver
Slide 15: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 120 80% 70% 100 94 95 88 60% 83 85 80 50% 60 40% 33% 33% 32% 30% 30% 30% 40 20% 20 10% - 0% TTM Q4 2023 TTM Q1 2024 TTM Q2 2024 TTM Q3 2024 TTM Q4 2024 TTM FCF TTM Dividend to FCF % (1) Free cash flow is
Slide 16: Enterprise value
Enterprise value Sum of the parts suggests upside to current valuation AGF Enterprise Value ($m) 800 680 700 642 38 600 500 341 2024 EBITDA 400 Excl. Income Implied 301 from LT & ST EV / EBITDA 642 300 Investments Multiple 200 301 $119m4 2.5x 100 - - Market Cap Ne t Cash - En te rprise Value LT and
Slide 17: 2025 Focus & Priorities
2025 Focus & Priorities Meet core Maintain sales Deliver consistent Build a diversified expense momentum and and repeatable private capital guidance penetrate high investment and alternatives while continuing growth distribution performance business to invest in key channels growth areas 17
Slide 18: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $95m and 30% Position • $341m in long- and short-term investments and net cash of ~$38m • Supports strong dividend yield and share buybacks, while investing for growth Outperfo
Slide 19: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story To learn more visit AGF.com ® The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
Slide 20: Disclaimer
DISCLAIMER AGF Investments - AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF Internat