AGF Manage me nt L imite d E a rning s Co nfe re nc e Ca ll F - - PowerPoint PPT Presentation

AGF Manage me nt L imite d

E a rning s Co nfe re nc e Ca ll F

• urth Qua rte r 2019

Ja nua ry 22nd, 2020

Ca ution Re g a rding F

• rwa rd- L
• oking Sta te me nts

T he fo rwa rd lo o king info rma tio n is pro vide d a s o f Ja nua ry 22nd, 2020. Ce rta in info rma tio n pre se nte d in the se re ma rks a nd in this pre se nta tio n tha t is no t histo ric a l fa c tua l info rma tio n ma y c o nstitute fo rwa rd-lo o king info rma tio n within the me a ning o f se c uritie s la ws. Ac tua l re sults c o uld diffe r ma te ria lly fro m a c o nc lusio n, fo re c a st o r pro je c tio n c o nta ine d in suc h fo rwa rd-lo o king info rma tio n. F

• rwa rd-lo o king info rma tio n ma y re la te to o ur future o utlo o k a nd a ntic ipa te d e ve nts o r re sults a nd ma y inc lude sta te me nts a b o ut

AGF Ma na g e me nt L imite d ("AGF ") o r the inve stme nt funds it ma na g e s (the "F unds"), inc luding b usine ss o pe ra tio ns, stra te g y a nd e xpe c te d fina nc ia l pe rfo rma nc e a nd c o nditio n. F

• rwa rd-lo o king sta te me nts inc lude sta te me nts tha t a re pre dic tive in na ture ,

de pe nd upo n o r re fe r to future e ve nts o r c o nditio ns, o r inc lude wo rds suc h a s ‘ e xpe c ts,’ ‘ a ntic ipa te s,’ ‘ inte nds,’ ‘ pla ns,’ ‘ b e lie ve s,’

• r ne g a tive ve rsio ns the re o f a nd simila r e xpre ssio ns o r future o r c o nditio na l ve rb s suc h a s ‘ ma y,’ ‘ will,’ ‘ sho uld,’ ‘ wo uld,’ o r ‘ c o uld.’

I n a dditio n, a ny sta te me nt tha t ma y b e ma de c o nc e rning future fina nc ia l pe rfo rma nc e (inc luding re ve nue s, e a rning s o r g ro wth ra te s), o ng o ing b usine ss stra te g ie s o r pro spe c ts, a nd po ssib le future a c tio n o n o ur pa rt, is a lso a fo rwa rd-lo o king sta te me nt. F

• rwa rd-lo o king sta te me nts a re b a se d o n c e rta in ma te ria l fa c to rs a nd a ssumptio ns, inc luding e xpe c te d g ro wth, re sults o f
• pe ra tio ns, b usine ss pro spe c ts, b usine ss pe rfo rma nc e a nd o ppo rtunitie s. While we c o nside r the se fa c to rs a nd a ssumptio ns to b e

re a so na b le b a se d o n info rma tio n c urre ntly a va ila b le , the y ma y pro ve to b e inc o rre c t. F

• rwa rd-lo o king sta te me nts a re b a se d o n

c urre nt e xpe c ta tio ns a nd pro je c tio ns a b o ut future e ve nts a nd a re inhe re ntly sub je c t to , a mo ng o the r thing s, risks, unc e rta intie s a nd a ssumptio ns a b o ut o ur o pe ra tio ns, e c o no mic fa c to rs a nd the fina nc ia l se rvic e s industry g e ne ra lly. T he y a re no t g ua ra nte e s o f future pe rfo rma nc e , a nd a c tua l e ve nts a nd re sults c o uld diffe r ma te ria lly fro m tho se e xpre sse d o r implie d b y fo rwa rd-lo o king sta te me nts ma de b y us due to , b ut no t limite d to , impo rta nt risk fa c to rs suc h a s le ve l o f a sse ts unde r o ur ma na g e me nt, vo lume o f sa le s a nd re de mptio ns o f o ur inve stme nt pro duc ts, pe rfo rma nc e o f o ur inve stme nt funds a nd o f o ur inve stme nt ma na g e rs a nd a dviso rs, c o mpe titive fe e le ve ls fo r inve stme nt ma na g e me nt pro duc ts a nd a dministra tio n, a nd c o mpe titive de a le r c o mpe nsa tio n le ve ls a nd c o st e ffic ie nc y in o ur inve stme nt ma na g e me nt o pe ra tio ns, a s we ll a s inte re st a nd fo re ig n e xc ha ng e ra te s, ta xa tio n, c ha ng e s in g o ve rnme nt re g ula tio ns, une xpe c te d judic ia l o r re g ula to ry pro c e e ding s, a nd o ur a b ility to c o mple te stra te g ic tra nsa c tio ns a nd inte g ra te a c q uisitio ns. We c a utio n tha t the fo re g o ing list is no t e xha ustive . T he re a de r is c a utio ne d to c o nside r the se a nd o the r fa c to rs c a re fully a nd no t pla c e undue re lia nc e o n fo rwa rd-lo o king sta te me nts. Othe r tha n spe c ific a lly re q uire d b y a pplic a b le la ws, we a re unde r no o b lig a tio n (a nd e xpre ssly disc la im a ny suc h o b lig a tio n) to upda te o r a lte r the fo rwa rd-lo o king sta te me nts, whe the r a s a re sult o f ne w info rma tio n, future e ve nts o r o the rwise . F

• r a mo re c o mple te disc ussio n o f the risk fa c to rs

tha t ma y impa c t a c tua l re sults, ple a se re fe r to AGF ’ s mo st re c e nt fina nc ia l sta te me nts a nd MD&A a nd, fo r the F unds, to e a c h F und’ s mo st re c e nt pro spe c tus a nd MRF P, a s a pplic a b le , a ll a va ila b le o n www.se da r.c o m. 2

Confe re nc e Ca ll Pa rtic ipa nts

3

Pr e se nting Available for que stions Ke vin Mc Cr e adie , CF A, MBA

Chie f E xe c utive Offic e r & Chie f I nve stme nt Offic e r

Adr ian Basar aba, CPA, CA, CF A

Se nio r Vic e -Pre side nt & Chie f F ina nc ia l Offic e r

Judy G. Goldr ing, L L .B, L L .D, ICD.D

Pre side nt & Chie f Administra tio n Offic e r

T

• da y’s Disc ussion

4

• Smith & Willia mso n a nd T

ilne y Me rg e r Upda te

• Hig hlig hts o f the 4th Qua rte r a nd F

isc a l 2019

• Busine ss Upda te s
• F

ina nc ia l Re sults

• Ca pita l & L

iq uidity

• F
• c us & Prio ritie s

F isc a l 2019 Hig hlig hts

5

Continued progress toward stated objectives

L ippe r Awa rd Winne r AGF U.S. Small- Mid Cap F und1 liquid alt pro duc ts

la unc he d Adjuste d dilute d

E PS of $0.71

20% hig he r tha n prio r ye a r

3

Priva te a lte rna tive s AUM re a c he s

$2.6 billion

3.4% re duc tion in SG&A c o mpa re d

to prio r ye a r

2

(1) AGF U.S. Sma ll-Mid Ca p wo n L ippe r Awa rd fo r thre e - a nd five -ye a r pe rfo rma nc e . Ple a se se e slide 15 fo r a dditio na l disc lo sure s. (2) 2018 a djuste d SG&A o f $195.9m (re sta te d fo r IF RS 15) (3) 2018 a djuste d dilute d E PS o f $0.59 (re sta te d fo r IF RS 15)

L ine of Busine ss Pe rforma nc e

6

($ millions)

Q4 2018 Q4 2019 Change

Mutua l funds 18,713 19,346 3% I nstitutio na l, Sub -a dviso ry & E T F 12,475 10,755 (14%) Priva te Clie nt 5,513 6,100 11% Priva te Alte rna tive s 1,011 2,580 155%

T

• tal

37,712 38,781 3%

Mutua l F und Busine ss Re vie w

7

(1) Industry lo ng -te rm funds ne t sa le s pe r IF I C. (2) Re ta il mutua l fund ne t sa le s (re de mptio ns) c a lc ula te d a s re po rte d mutua l fund ne t sa le s (re de mptio ns) le ss no n-re c urring institutio na l ne t sa le s (re de mptio ns) in e xc e ss o f $5 millio n inve ste d in o ur mutua l funds.

IF IC Industr y Ne t Sale s ($B)1 AGF Re tail Mutual F und Ne t Sale s ($M)2

45.0 7.5 3.4 T T M E nding No v 30, 2017 T T M E nding No v 30, 2018 T T M E nding No v 30, 2019 (131) (103) (181) Q4 2018 Q3 2019 Q4 2019

F ina nc ia l Re sults

Adjuste d for one - time ite ms note d in the MD&A a nd re sta te d for IF RS 151

8 Continuing Ope r a tions

(1) Co mpa ra tive s a djuste d fo r IF RS 15. (2) Q4 2019 is a djuste d fo r o ne -time fund e xpe nse ta x re c o ve ry o f $4.1m [E PS impa c t $0.04]. (3) Q1 2019 is a djuste d fo r o ne -time re struc turing c o sts o f $14.4m [E PS impa c t o f $0.14]. (4) 2018 is a djuste d fo r o ne -time S&WHL ta x le vy re ve rsa l o f $1.5m [E PS impa c t $0.02], o ne -time re struc turing a nd a dministra tive c o st o f $5.2m [E PS impa c t $0.05], o ne - time inte re st e xpe nse re c o ve ry re la te d to tra nsfe r pric ing c a se o f $2.2m [E PS impa c t $0.03] a nd o ne -time ne t re c o ve ry o f $21.9m re la te d to tra nsfe r pric ing pro visio n [E PS impa c t $0.28].

($ millio ns, e xc e pt pe r sha re a mo unts) Q 4-19

2

Q 3-19 F a v / (Unfa v) 2019

2,3

2018

4

F a v / (Unfa v) Re ve nue 110.4 107.4 2.8% 432.6 436.5 (0.9% ) SG &A 45.4 47.3 4.0% 189.2 195.9 3.4% EBIT DA be fo re Co mmissio ns 34.6 29.0 19.3% 120.3 110.2 9.2% EBIT DA be fo re Co mmissio ns Margin 31.3% 27.0% 15.9% 27.8% 25.2% 10.3% Ne t Inc o me - Equity O wne rs 19.2 14.4 33.3% 56.2 48.3 16.4% Dilute d EPS 0.24 0.18 33.3% 0.71 0.59 20.3% F re e Ca sh F lo w 18.3 9.7 88.7% 52.8 45.2 16.8% Dilute d EPS (Re po rte d & Una djuste d) 0.28 0.18 55.6% 0.60 0.92 (34.8% ) Se que ntia l Q ua rte r Ye a r O ve r Ye a r

9

(1) Ce rta in to ta ls a nd sub to ta ls ma y no t re c o nc ile due to ro unding . (2) Adjuste d to e xc lude o ne -time ite ms a s no te d in the MD&A; c o mpa ra tive s re sta te d fo r IF RS15. (3) T

• ta l Ave ra g e AUM e xc luding Priva te Alte rna tive s c a lc ula te d using a ve ra g e da ily AUM fo r mutua l fund a nd a ve ra g e mo nthly AUM fo r Institutio na l, sub -a dviso ry

a nd E T F a c c o unts a nd Priva te Clie nt. (4) Re pre se nts ma na g e me nt, a dviso ry a nd a dministra tio n fe e s a nd de fe rre d sa le s c ha rg e s. (5) Inc lude s inve stme nt a dviso ry fe e s.

F ina nc ia l Re sults – BPS De tail1,2

(bps o f ave rag e AU M)

Q 4- 19 T T M Avera g e AUM exc l. Priva te Alterna tives ($B)3 35.4 36.0

Ave rag e Mutual F und 19.0 18.9 Ave rag e I nsti tuti

• nal, Sub-Advi

so ry, E T F s & Pri vate Cli e nt Re ve nue (bps)4 111 108 L e ss: T rai le r F e e s (bps) 34 34 SG&A (bps)5 52 53 E BI T DA be fo re c o m m i ssi

• ns (bps)

26 21 17.1 16.4

10

(1) Q2-2018 a djuste d fo r o ne -time re struc turing c o sts o f $3.8m (ne t o f ta x). Q1-2019 do e s no t inc lude $11.3m re struc turing c ha rg e (ne t o f ta x).

Ca pita l & L iquidity1

45 51 54 51 53 55% 49% 46% 49% 47%

(1) 1 1 2 2 3 3 4 4

• 10

20 30 40 50 60 T T M Q4-F Y18 T T M Q1-F Y19 T T M Q2-F Y19 T T M Q3-F Y19 T T M Q4-F Y19

($ millions)

T T M Adjuste d F CF T T M Divide nd to F CF %

F Y2019 F ro m c o ntinuing o pe ra tio ns ($M, e xc e pt pe r sha re da ta ) Adjuste d fo r

• ne -time ite ms

IF RS 16 a djustme nts Re sta te d fo r IF RS 16 S&W Re sta te d fo r IF RS 16 a nd e xc luding S&W

Inc o me Manag e me nt, adv iso ry and administratio n fe e s 382.0 382.0 382.0 De fe rre d sale s c harg e 7.2 7.2 7.2 Share o f pro fit o f asso c iate and jo int v e nture s 24.9 24.9 (24.6) 0.3 F air v alue adjustme nts and o the r inc o me 18.5 18.5 18.5

T

• ta l Inc o me

432.6 432.6 (24.6) 408.0

E xpe nse s Se ling , g e ne ral and administrativ e 189.2 (4.6) 184.6 184.6 T railing c o mmissio ns 120.7 120.7 120.7 Inv e stme nt adv iso ry fe e s 2.4 2.4 2.4

312.3 (4.6) 307.7 307.7 EBIT DA be fo re c o mmissio ns 120.3 4.6 124.9 (24.6) 100.3 EBIT DA be fo re c o mmissio ns Margin 27.8% 28.9% 24.6%

De fe rre d se lling c o mmissio ns 41.8 41.8 41.8 Amo rtizatio n, de re c o g nitio n and de pre c iatio n 4.2 3.3 7.5 7.5 Inte re st E xpe nse 6.7 0.7 7.4 7.4

Inc o me be fo re inc o me ta xe s 67.6 0.6 68.2 (24.6) 43.6

Inc o me tax e xpe nse 11.4 0.1 11.5 11.5

Ne t inc o me a ttributa ble to e quity o wne rs o f the Co mpa ny 56.2 0.5 56.7 (24.6) 32.1 Dilute d EPS 0.71 0.00 0.71 (0.31) 0.40 F re e Ca sh F lo w 52.8 52.8 (9.7) 43.1

2019 Pr

• F
• r

ma: Re sta te d for IF

RS 16 a nd e xc luding Smith & Willia mson1

11

(1) Ce rta in to ta ls, sub to ta ls a nd pe rc e nta g e s ma y no t re c o nc ile due to ro unding .

2020 F

• c us & Prioritie s

12

De live r c o nsiste nt a nd re pe a ta b le inve stme nt pe r for manc e Po sitio n AGF to re a c h $5 billion in priva te a lte rna tive a sse ts Drive the

• rg a niza tio n to

sustainable ne t inflows Me e t e xpe nse guidanc e o f $180 millio n while c o ntinuing to inve st in ke y g ro wth a re a s

13

Appe ndix 1: Historic a l P&L

e xc luding One - time Ite ms a nd Re sta te d for IF RS 151

(1) Ce rta in to ta ls, sub to ta ls a nd pe rc e nta g e s ma y no t re c o nc ile due to ro unding . (2) T

• ta l Ave ra g e AUM e xc luding Priva te Alte rna tive s c a lc ula te d using a ve ra g e da ily AUM fo r mutua l fund a nd a ve ra g e mo nthly AUM fo r Institutio na l, sub -a dviso ry a nd E

T F a c c o unts a nd Priva te Clie nt. (3) Re ve nue b ps = Ma na g e me nt, a dviso ry a nd a dministra tio n fe e s, a nd De fe rre d sa le s c ha rg e / to ta l a ve ra g e AUM e xc luding priva te a lte rna tive s. (4) Ne t inc o me a ttrib uta b le to e q uity o wne rs o f the Co mpa ny do e s no t inc lude no n-c o ntro lling inte re st (whic h is no t sho wn a b o ve ).

F rom c ontinuing opera tions a djusted for one- time items a nd resta ted for IF R S 15 ($M, exc ept per sha re da ta ) Q 1'18 Q 2'18 Q 3'18 Q 4'18 Q 1'19 Q 2'19 Q 3'19 Q 4'19

T

• tal Ave rag e AUM e xc luding Private Alte rnative s 2

36,099 36,405 37,583 36,930 35,804 37,014 35,784 35,444 I nc o m e Manag e m e nt, advi so ry and adm i ni strati

• n fe e s

101.0 102.6 100.8 95.3 91.0 99.2 95.5 96.4 De fe rre d sale s c harg e 1.6 1.7 1.6 1.6 1.6 1.9 1.8 1.9 Re ve nue bps 3 (Re fe r to slide 10) 115 114 108 105 105 108 108 111 Share o f pro fi t o f asso c i ate and jo i nt ve nture s 4.5 5.8 7.1 6.2 4.5 6.6 5.9 7.9 F ai r value adjustm e nts and o the r i nc o m e 1.2 1.5 3.1 0.9 7.9 2.1 4.2 4.2

T

• ta l Inc ome

108.3 111.6 112.6 104.0 105.0 109.8 107.4 110.4

E xpe nse s Se li ng , g e ne ral and adm i ni strati ve 50.5 52.6 47.1 45.8 48.0 48.6 47.3 45.4 T rai li ng c o m m i ssi

• ns

31.8 32.5 32.6 30.1 29.0 31.3 30.6 29.9 I nve stm e nt advi so ry fe e s 1.1 0.7 0.7 0.9 0.7 0.7 0.5 0.5

83.4 85.8 80.4 76.8 77.7 80.6 78.4 75.8 E BIT DA before c ommissions 24.9 25.8 32.2 27.2 27.3 29.2 29.0 34.6 EBIT DA be fore c ommissions Margin 23.0% 23.1% 28.6% 26.2% 26.0% 26.6% 27.0% 31.3%

De fe rre d se lli ng c o m m i ssi

• ns

11.0 10.8 9.3 9.0 11.1 12.2 9.5 8.9 Am o rti zati

• n, de re c o g ni

ti

• n and de pre c i

ati

• n

1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.0 I nte re st e xpe nse 1.3 1.7 1.8 1.7 2.0 1.8 1.5 1.3

Inc ome before inc ome ta xes 11.4 12.1 19.9 15.3 13.1 14.1 16.9 23.4 Inc ome ta xes 2.4 2.9 3.6 2.4 2.0 2.6 2.5 4.2 Net inc ome a ttributa ble to equity owners of the Compa ny

4

9.5 9.6 16.3 12.9 11.1 11.5 14.4 19.2 Diluted E PS 0.11 0.12 0.20 0.17 0.14 0.14 0.18 0.24

T

• le a rn mo re a b o ut AGF

’ s histo ry visit: www.a g f.c o m/ c a / e n/ a b o ut- a g f/ o ur-sto ry

T ha nk You!

T he AGF U.S. Sma ll-Mid Ca p F und (MF Se rie s) wa s a wa rde d the 2019 L ippe r F und Awa rd in the US Sma ll/ Mid Ca p E q uity c a te g o ry fo r the 3- a nd 5-ye a r pe rio d o ut o f a c la ssific a tio n to ta l o f 23 a nd 21 funds, re spe c tive ly, fo r the pe rio d e nding July 31, 2019. T he c o rre spo nding L ippe r L e a de r Co nsiste nt Re turn ra ting s o f the fund fo r the sa me pe rio d a re a s fo llo ws: N/ A (1 ye a r), 5 (3 ye a rs) [414 funds], 4 (5 ye a rs) [285 funds], a nd 2 (10 ye a rs) [107 funds]. T he fund’ s pe rfo rma nc e fo r the pe rio d e nding De c e mb e r 31, 2019 is 23.4% (1 ye a r), 16.8% (3 ye a rs), 14.7% (5 ye a rs), 13% (10 ye a rs) a nd 10% (sinc e inc e ptio n June 16, 1993). T he L ippe r F und Awa rds g ra nte d a nnua lly b y Re finitiv, hig hlig hts funds a nd fund c o mpa nie s tha t ha ve e xc e lle d in de live ring c o nsiste ntly stro ng -risk a djuste d pe rfo rma nc e re la tive to the ir pe e rs. T he L ippe r F und Awa rds a re b a se d o n the L ippe r L e a de r fo r Co nsiste nt Re turn ra ting , whic h is a risk-a djuste d pe rfo rma nc e me a sure c a lc ula te d o ve r 36, 60 a nd 120 mo nths. T he hig he st 20% o f funds in e a c h c a te g o ry a re na me d L ippe r L e a de rs fo r Co nsiste nt Re turn a nd re c e ive a sc o re o f 5, the ne xt 20% re c e ive a sc o re o f 4, the middle 20% a re sc o re d 3, the ne xt 20% a re sc o re d 2 a nd the lo we st 20% a re sc o re d 1. T he fund with the hig he st L ippe r L e a de r fo r Co nsiste nt Re turn (E ffe c tive Re turn) va lue in e a c h e lig ib le c la ssific a tio n pe r a wa rd unive rse wins the L ippe r F und Awa rd. L ippe r L e a de r Ra ting s c ha ng e mo nthly. F

• r g re a te r de ta il o n the L

ippe r Awa rds a nd L ippe r L e a de r Ra ting s, whic h inc lude s the ra ting me tho do lo g y pre pa re d b y L ippe r, se e www.L ippe ra lpha .re finitiv.c o m. Altho ug h L ippe r ma ke s re a so na b le e ffo rts to e nsure the a c c ura c y a nd re lia b ility o f the da ta c o nta ine d he re in, the a c c ura c y is no t g ua ra nte e d b y L ippe r.

Disc la ime r

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