AGF Manage me nt L imite d E a rning s Co nfe re nc e Ca ll F o urth Qua rte r 2019 Ja nua ry 22 nd , 2020
Ca ution Re g a rding F orwa rd- L ooking 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 22 nd , 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 o 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 o 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,’ o 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 o 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 o 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 o 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 o 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 Pr e se nting 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 Available for que stions Judy G. Goldr ing, L L .B, L L .D, ICD.D Pre side nt & Chie f Administra tio n Offic e r 3
T oda y’s Disc ussion Smith & Willia mso n a nd T ilne y Me rg e r Upda te • Hig hlig hts o f the 4 th 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 o c us & Prio ritie s • 4
F isc a l 2019 Hig hlig hts Continued progress toward stated objectives L ippe r Awa rd Winne r liquid alt pro duc ts AGF U.S. Small- Mid und 1 la unc he d Cap F Adjuste d dilute d Priva te a lte rna tive s 3.4% re duc tion in E PS of $0.71 AUM re a c he s SG&A c o mpa re d 20% hig he r tha n $2.6 billion 2 to prio r ye a r 3 prio r ye a r (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 $0.59 (re sta te d fo r IF RS 15) 5
L ine of Busine ss Pe rforma nc e Q4 2018 Q4 2019 Change ($ millions) 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 otal 37,712 38,781 3% 6
Mutua l F und Busine ss Re vie w y Ne t Sale s ($B) 1 und Ne t Sale s ($M) 2 IF IC Industr AGF Re tail Mutual F 45.0 (103) (131) (181) 7.5 3.4 T T M E nding T T M E nding T T M E nding Q4 2018 Q3 2019 Q4 2019 No v 30, 2017 No v 30, 2018 No v 30, 2019 (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 $5 millio n inve ste d in o ur mutua l funds. 7
F ina nc ia l Re sults RS 15 1 Adjuste d for one - time ite ms note d in the MD&A a nd re sta te d for IF Se que ntia l Q ua rte r Ye a r O ve r Ye a r F a v / F a v / 2 2,3 4 ($ millio ns, e xc e pt pe r sha re a mo unts) Q 3-19 Q 4-19 2019 2018 (Unfa 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% a tions EBIT DA be fo re Co mmissio ns 34.6 29.0 19.3% 120.3 110.2 9.2% Continuing Ope r 15.9% 10.3% EBIT DA be fo re Co mmissio ns Margin 31.3% 27.0% 27.8% 25.2% 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% ) (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 $0.28]. 8
ina nc ia l Re sults – BPS D e tail 1,2 F (bps o f ave rag e AU M) Q 4- 19 T T M Avera g e AUM exc l. Priva te Alterna tives ($B) 3 35.4 36.0 Ave rag e Mutual F und 19.0 18.9 Ave rag e I nsti tuti o nal, Sub-Advi so ry, E T F s & 16.4 17.1 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 o ns (bps) 26 21 (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 o 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. 9
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