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

AGF Manage me nt L imite d

E a rning s Co nfe re nc e Ca ll Se c o nd Qua rte r 2018

June 27th, 2018

Caution Re gar ding F

• r

war d- L

• oking State me nts

T he fo rwa rd lo o king info rma tio n is pro vide d a s o f June 27th, 2018. 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 r e nc e Call Par tic ipants

Blake C. Goldr ing, CF A

Cha irma n & Chie f E xe c utive Offic e r

Ke vin Mc Cr e adie , CF A

Pre side nt & 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

3

T

• day’s Disc ussion

4

• Hig hlig hts o f the 2nd Qua rte r o f F

isc a l 2018

• Busine ss Upda te s

–

Re ta il

–

I nve stme nt Ma na g e me nt

–

I nstitutio na l

–

Alte rna tive s

• F

ina nc ia l Re sults

• Ca pita l & L

iq uidity

• F
• c us & Prio ritie s

Q2 2018 Highlights

5

Continued progress toward stated objectives

AUM o f

$38.5 billion

with g ro wth a c ro ss a ll line s o f b usine ss 2nd c onse c utive quar te r

• f re ta il

mutua l fund ne t sa le s

Institutiona l ne t sa le s of

$1.2 billion

Ac hie ve d substantial r e solution o n tra nsfe r pric ing ma tte r

Alte r native s

pla tfo rm re a c he d AUM o f $1 b illio n Be st Adve r tising Campaign Awar d a t the We a lth Pro fe ssio na l Awa rds

L ine of Busine ss Pe r for manc e

6

($ millions)

Q2 2017 Q2 2018 Change

Mutua l funds 18,884 19,118

1%

I nstitutio na l, Sub Adviso ry a nd E T F 11,336 12,823

13%

Priva te Clie nt 5,323 5,521

4%

Alte rna tive s 902 1,009

12%

T

• tal

36,445 38,471

6%

Growth a c ross a ll line s of busine ss

Re tail Busine ss Re vie w1

7

Re ta il mutua l fund ne t sa le s of $85 million in Q2 20181

(1) AGF g ro ss a nd ne t sa le s a djuste d to e xc lude no n-re c urring institutio na l tra nsa c tio ns in e xc e ss o f $5 millio n. (2) I ndustry g ro ss sa le s pe r I nve sto r E c o no mic s.

(291) (107) 85 Q2 2016 Q2 2017 Q2 2018

AGF Mutual F und Ne t Sale s ($M)1

(6%) 21% I ndustry AGF

Gr

• ss Sale s Impr
• ve me nt1,2

Q2 2018 vs. Q2 2017

Inve stme nt Manage me nt

Cur r e nt E nvir

• nme nt F

avour s Mome ntum

(1) One ye a r g lo b a l fa c to r re turns pe r Ba rra (2) Ab so lute fa c to r pe rfo rma nc e b a se d o n MSCI ACWI

• 2

2 4 6 8 06/ 17 09/ 17 12/ 17 03/ 18 06/ 18 Be ta E a rning s Yie ld Mo me ntum

Global F ac tor Re tur ns (% )1

• 20

20 40 60

• 40
• 20

20 40

• 100
• 70
• 40
• 10

20 50

T r ailing E ar nings Yie ld (% )2 Divide nd Yie ld (% )2 L

• w Volatility (% )2

8

Inve stme nt Manage me nt

AGF Global E quity Str ate gy Pe r for manc e Consiste nc y1

9

T

• p

q ua rtile 26% 19% 20% 2nd q ua rtile 49% 71% 70% 3rd q ua rtile 23% 10% 9% Bo tto m q ua rtile 3% 0% 0% 1 Ye a r (70 Pe rio ds) 3 Ye a r (62 Pe rio ds) 5 Ye a r (54 Pe rio ds) 84% (59/ 70) 98% (61/ 62) 100% (54/ 54) 0% 50% 100% Pe r iods of e xc e ss r e tur ns (% ) Consiste nc y of outpe r for manc e r e lative to be nc hmar k ove r the last 18 ye ar s2,3 1 Ye a r 3 Ye a r 5 Ye a r

(1) So urc e : AGFI nve stme nt Ope ra tio ns a nd e Ve stme nt Allia nc e a s a t Ma rc h 31, 2018. (2) Stra te g y p e rfo rma nc e is b a se d o n the AGFGlo b a l E q uity re pre se nta tive a c c o unt a nd is a d ditio na l info rma tio n to the AGFGlo b a l E q uity Co mpo site GI PS pre se nta tio n. Pe rfo rma nc e is pre se nte d in Ca na dia n do lla rs (C$) a nd displa ys g ro ss-o f-fe e re turns. (3) E xc e ss re turns a re b a se d o n the AGF Glo b a l E q uity re pre se nta tive a c c o unt re la tive to the MSCI All Co untry Wo rld I nde x o ve r 1-, 3- a nd 5-ye a r ro lling p e rio ds fro m Ja nua ry 1, 2000 to Ma rc h 31, 2018. (4) Qua rtile s a re b a se d o n ro lling q ua rte rly p e rio d ra nking s o f the AGF Glo b a l E q uity re pre se nta tive a c c o unt re la tive to the e Ve stme nt Glo b a l Co re E q uity unive rse , whic h wa s 85.9% p o p ula te d a s a t April 18, 2018, the da te the c ha rt wa s c re a te d . T

• p q ua rtile re pre se nts 1-25 ra nks, 2nd q ua rtile re pre se nts 26-50 ra nks, 3rd q ua rtile re pre se nts

51-75 ra nks a nd b o tto m q ua rtile re pre se nts 76-100 ra nks o ve r 1-, 3- a nd 5-ye a r ro lling p e rio ds fro m Ja nua ry 1, 2000 to Ma rc h 31, 2018. Ma y no t a dd to 100% due to ro unding .

Januar y 1, 2000 to Mar c h 31, 2018

Consiste nc y of outpe r for manc e r e lative to a unive r se of global e quity manage r s4

F inanc ial Re sults – Summar y

10 Continuing Ope ra tions

(1) Q2-2018 is a djuste d fo r o ne -time re struc turing a nd a dministra tive c o sts o f $3.8m (ne t o f ta x) [E PS impa c t $0.05], inte re st e xpe nse re c o ve ry o f $2.2m re la te d to the tra nsfe r pric ing c a se [E PS impa c t $0.03] a nd ne t e xpe nse re c o ve ry o f $7.4m re la te d to the tra nsfe r pric ing pro visio n [E PS impa c t $0.09]. (2) Q1-2018 is a djuste d fo r a n o ne -time ne t e xpe nse re c o ve ry o f $10m re la te d to the tra nsfe r pric ing pro visio n [E PS impa c t $0.13].

Se que ntial Quar te r Ye ar Ove r Ye ar

($ millio ns, e xc e pt pe r share amo unts)

Q2- 18 Q1- 18 F av / Q2- 18 Q2- 17 F av / Unfav Unfav

Re ve nue 114.2 110.9 3.0% 114.2 117.1 (2.5%) SG&A 60.4 53.1 (13.7%) 60.4 54.9 (10.0%) SG&A (Adjuste d)1 55.2 53.1 (4.0%) 55.2 54.9 (0.5%)

E BIT DA 20.6 24.9 (17.3% ) 20.6 29.2 (29.5% )

E BI T DA Marg in 18.0% 22.5% (20.0%) 18.0% 24.9% (27.7%)

E BIT DA (Adjuste d)1 25.8 24.9 3.6% 25.8 29.2 (11.6% )

E BI T DA Marg in (Adjuste d)1 22.6% 22.5% 0.4% 22.6% 24.9% (9.2%) F re e Ca sh F lo w 2.1 10.5 (80.0%) 2.1 10.4 (79.8%) F re e Ca sh F lo w (Adjuste d)1 5.9 10.5 (43.8%) 5.9 10.4 (43.3%)

Ne t Inc ome – E quity Owne r s 17.0 21.5 (20.9% ) 17.0 13.2 28.8% Ne t Inc ome – E quity Owne r s (Adjuste d)1,2 11.2 11.5 (2.6% ) 11.2 13.2 (15.2% ) Dilute d E PS 0.21 0.27 (22.2% ) 0.21 0.16 31.3% Dilute d E PS (Adjuste d)1,2 0.14 0.14 0.0% 0.14 0.16 (12.5% )

11

(1) Ave ra g e AUM e xc lude s Alte rna tive s pla tfo rm. (2) Re pre se nts ma na g e me nt, a dviso ry, a dministra tio n fe e s a nd de fe rre d sa le s c ha rg e re ve nue o nly. (3) I nc lude s inve stme nt a dviso ry fe e s. SG&A a nd E BI T DA a djuste d to e xc lude o ne -time ite ms a s no te d o n the fina nc ia l sta te me nts.

(b ps o f a ve ra g e AUM)

Q2- 18 T T M Ave r age AUM ($B)1 36.4 35.6

Ave ra g e Mutua l F und 19.0 18.8 Ave ra g e I nstitutio na l, Sub -Adviso ry, E T F s & Priva te Clie nt 17.4 16.8 Re ve nue (b ps)2 116 118 L e ss: T ra ile r F e e s (b ps) 35 36 SG&A (b ps)3 61 61 E BI T DA (b ps)2,3 20 22

F inanc ial Re sults – BPS De tail

12

Capital & L iquidity

Divide nd payout r atio, e xc luding one - time ite ms, of 55%

• n a tr

ailing twe lve months basis

10.4 16.4 12.9 10.5 5.9 60% 38% 49% 60% 107%

• 50%

0% 50% 100% 150% 200% 250% 300% 350% 400%

• 5

10 15 20 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18

($ millions)

Adjuste d fre e c a sh flo w Divid e nd % o f a djuste d fre e c a sh flo w

(1) Q4-2017 a djuste d fo r o ne -time litig a tio n se ttle me nt o f $8.7m (ne t o f ta x) a nd Q2-2018 a djuste d fo r o ne -time re struc turing a nd a dministra tive c o sts o f $3.8m (ne t o f ta x).

13

2018 F

• c us & Pr

ior itie s Ab o ve me dia n

inve stme nt pe r for manc e Gr

• w sub -

a dviso ry a nd institutio na l L e ve ra g e the

AGF iQ

pla tfo rm Ma inta in

c onsiste nt ne t sale s in

re ta il mutua l funds

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 hank You!