AGF MANAGEMENT LIMITED
MARCH 2013
AGF MANAGEMENT LIMITED AGF MANAGEMENT LIMITED EARNINGS CONFERENCE - - PowerPoint PPT Presentation
MARCH 2013 AGF MANAGEMENT LIMITED AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL EARNINGS CONFERENCE CALL FIRST QUARTER 2013 MARCH 27, 2013 CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of
MARCH 2013
The forward looking information is provided as of March 27, 2013. Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information within the meaning
forward-looking information. Forward-looking information may relate to our future outlook and anticipated events or results and may include statements about AGF Management Limited ("AGF") or the investment funds it manages (the "Funds"), including business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes,’ or negative versions thereof and similar expressions or future or conditional verbs such as ‘may,’ ‘will,’ ‘should,’ ‘would,’ or ‘could.’ In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business t t i t d ibl f t ti t i l f d l ki t t t y g p ( g g g ) g g strategies or prospects, and possible future action on our part, is also a forward-looking statement. Forward-looking statements are based on certain material factors and assumptions, including expected growth, results
assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward- looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the financial services industry generally They are not guarantees of future performance and actual events and results could differ services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us due to, but not limited to, important risk factors such as level of assets under our management, volume of sales and redemptions of our investment products, performance of our investment funds and of our investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and our ability to complete strategic transactions and integrate acquisitions. We caution that the foregoing list is not exhaustive. The reader is cautioned to id th d th f t f ll d t l d li f d l ki t t t Oth th g q g g consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than specifically required by applicable laws, we are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. For a more complete discussion of the risk factors that may impact actual results, please refer to AGF’s most recent financial statements and MD&A and, for the Funds, to each Fund’s most recent prospectus and MRFP, as applicable, all available on www.sedar.com.
2 2
3
4
5
1-yr Performance (% of Funds Above Median) 3 P f (% f F d Ab M di )
39%
40% 50% 60%
3-yr Performance (% of Funds Above Median)
23% 38%
20% 30% 40%
17%
0% 10% y 12 h 12 il 12 y 12 e 12 y 12 t 12 r 12 r 12 r 12 r 12 y 13 y 13
6
February March Apri May June July Augus Septembe Octobe Novembe December January February
7
8
($ millions, except per share amounts)
Q2’12 Q3’12 Q4’12 Q1’13 Q1’13 Q1’12 Change Revenue 133 5 119 8 125 0 122 5 122 5 132 0 (7 2%) Revenue 133.5 119.8 125.0 122.5 122.5 132.0 (7.2%) SG&A 47.0 49.8 41.3 44.1 44.1 43.2 2.1% EBITDA 50.3 36.3 50.0 45.3 45.3 52.5 (13.7%) EBITDA Margin 37.7% 30.3% 40.0% 37.0% 37.0% 39.8% (7.1%)
ing Operations
EBITDA (adjusted) 50.3 42.2 49.2 45.3 45.3 52.5 (13.7%) EBITDA Margin (adjusted) 37.7% 35.2% 39.4% 37.0% 37.0% 39.8% (7.1%) Free Cash Flow 33.2 17.6 22.2 28.2 28.2 31.3 (10.2%)
Continu
Continuing Operatio
Net Income 23.8 (13.3) 15.7 15.6 15.6 17.3 (9.8%) EPS Diluted 0.25 (0.14) 0.17 0.17 0.17 0.18 (5.6%) EPS Diluted (adjusted) 0.25 0.17 0.20 0.17 0.17 0.18 (5.6%)
Consolidated Operations C
9
80 0 150
132 0 133 5
65 0 70.0 75.0 80.0 135 140 145 150
Revenue EBITDA EBITDA (Adjusted) 132.0 133.5 119.8 125.0 122.5 50.0 52.5 50.3
50 0 55.0 60.0 65.0 120 125 130 135 TDA $ millions) venue $ millions)
36 3 42.2 49.2 45.3
35.0 40.0 45.0 50.0 105 110 115 120 (EBIT (Rev
EBITDA Margin 39 8% 37 7% 30 3% 40 0% 37 0%
(1)
36.3
30.0 100 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 10 10
EBITDA Margin 39.8% 37.7% 30.3% 40.0% 37.0%
Q3-12 EBITDA adjusted for $5.9m of one-time items related to restructuring (2) Q4-12 EBITDA adjusted for reversal of $0.8m of restructuring cost accrual
(bps of average AUM)
(1)(2)
(2)
(2)
(1) Includes investment advisory fees. (2) Adjusted to exclude one-time expenses.
11
106%
50 60
Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio)
400
$356m 41.7 39.2 33.2 28.2 60% 65% 76% 85%
30 40 50
($ millions)
22.2
10 20
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Balance Sheet Cash
12 12
13