FIERA CAPITAL 2014 Q3 Results

Transcription

1 FIERA CAPITAL 2014 Q3 Results November 13, 2014 SYLVAIN BROSSEAU, President & COO MARCEL LAROCHELLE, Executive Vice President & CFO

2 Caution Regarding Forward-Looking Statements The accompanying Investor Presentation contains forward-looking information, including future-oriented financial information and financial outlooks within the meaning of Canadian securities laws and regulations. Forward-looking information may include comments with respect to Fiera Capital Corporation's ("Fiera") objectives, strategies to achieve those objectives, expected financial results (including those in the area of risk management), and the outlook for Fiera's businesses and for the Canadian, United States and global economies. Such forward-looking statements are typically, but not always, identified by words or phrases such as "believe," "expect," "anticipate," "intent," "estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or conditional verbs, such as "will," "should," "would" and "could." Forward-looking statements also include any other statements that do not refer to historical facts. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities laws. By their very nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond Fiera's control, could cause actual results to differ materially from the estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity; significant market volatility and interruptions; the failure of third parties to comply with their obligations to Fiera and its affiliates; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes in tax laws; operational and reputational risks; the risk that Fiera's risk management models may not take into account all relevant factors; the accuracy and completeness of information received by Fiera; Fiera's ability to complete and integrate acquisitions and its other growth strategies; changes in accounting policies and methods Fiera uses to report its financial condition and the results of its operations, including uncertainties associated with critical accounting assumptions and estimates; the effect of applying future accounting changes; Fiera's ability to attract and retain key executives; technological developments; fraud by internal or external parties; consolidation in the Canadian investment management sector; competition, both from new entrants and established competitors; judicial and regulatory proceedings; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts and war on terrorism; the effects of disease or illness on local, national or international economies; disruptions to public infrastructure, including transportation, communication, power and water; and Fiera's anticipation of and success in managing the risks implied by the foregoing. These and other factors may cause Fiera's actual performance to differ materially from that contemplated by forward-looking statements. For more information, see the discussion in Fiera most recent Annual Information Form. The preceding list of important factors is not exhaustive. The purpose of forward-looking statements of the nature of future oriented financial information or financial outlook included herein is to provide guidance as to Fiera's expectations and assumptions for certain operations and financial data. Prospective investors should not attribute undue certainty to, or place undue reliance on, such forward-looking statements. The information contained in the Investor Presentation, including any forward-looking statements, has been prepared as of September 30, 2014 unless otherwise indicated herein. For more details on the information provided herein, please consult Fiera s most recent unaudited interim condensed consolidated financial statements and management discussion and analysis for the quarter ended September 30, 2014 as filed on the SEDAR website at Fiera does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf except as required by applicable laws. Forward-looking information in this document is based on Fiera's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing this document and any other disclosure made by Fiera. Additional information relating to Fiera, including Fiera s Annual Information Form, is located on the SEDAR website at 2

3 Overview Record $1.7B in organic growth for the quarter Won major institutional mandates beyond Canadian market Sixth global consultant rating U.S. Private Wealth acquisitions bearing fruit Expanded breadth and depth in retail markets Continued to invest in platform and team 3

4 Quarterly Highlights EPS of $0.07, up 133% compared to $0.03 in Q Cash EPS 1 of $0.20, up 43% from $0.14 in Q Base management fees and other revenues of $52.1 million, up 51% from $34.4 million in Q Adjusted EBITDA 2 of $18.1 million, up 50% from $12.1 million in Q YTD Net Earnings 3 of $15.4 million, 138% higher than 2013 AUM of $84.9 billion, up 26% year-over-year 1: Cash earnings are calculated as the sum of net earnings (loss) attributable to the Company s shareholders, non-cash items, including depreciation of property and equipment, amortization of intangible assets, changes in fair value of derivative financial instruments and non-cash compensation items. 2: Adjusted EBITDA excludes non-cash compensation, acquisition and restructuring-related costs. 3: Attributable to the Company s shareholders 4

5 Financial Highlights: Quarter-over-Quarter Q Q Variation $ $ Total AUM 84.9B 82.1B 3% Total Revenues 52.4M 55.7M (6%) Base Management Fees 50.7M 49.7M 2% Total Performance Fees 0.3M 4.1M (93%) Other Revenues 1.4M 1.9M (24%) Adjusted EBITDA M 20.2M (10%) Net Earnings Attributable to the Company s Shareholders 5.1M 7.7M (34%) Adjusted EBITDA 1 per Share (basic) (13%) Net Earnings per Share (basic) (36%) 1: Adjusted EBITDA excludes non-cash compensation, acquisition and restructuring related-costs. 5

6 Financial Highlights: Year-over-Year Q Q Variation $ $ Total AUM 84.9B 67.2B 26% Total Revenues 52.4M 35.1M 49% Base Management Fees 50.7M 34.2M 48% Total Performance Fees 0.3M 0.7M (62%) Other Revenues 1.4M 0.2M 658% Adjusted EBITDA M 12.1M 50% Net Earnings Attributable to the Company s Shareholders 5.1M 1.5M 235% Adjusted EBITDA 1 per Share (basic) % Net Earnings per Share (basic) % 1: Adjusted EBITDA excludes non-cash compensation, acquisition and restructuring related-costs. 6

7 Revenue Trend Quarterly & Last Twelve Months * Q5 due to the fiscal year change in

8 Revenue Breakdown by Clientele Q Q

9 Breakdown by Asset Class Q AUM Estimated Revenues 9

10 Adjusted EBITDA ($) & Margin Trend Quarter-over-Quarter YTD 1: Adjusted EBITDA excludes non-cash compensation, acquisition and restructuring related costs. 10

11 Rolling LTM Adjusted EBITDA ($) & Margin Trend * Q5 due to the fiscal year change in : Adjusted EBITDA excludes non-cash compensation, acquisition and restructuring related costs. 11

12 Rolling LTM Adjusted EPS, Dividends & Cash Earnings Adjusted EPS: 25% CAGR since Q * Q5 due to the fiscal year change in

13 Investment Performance (September 30, 2014) Traditional Strategies Fixed Income Annualized Rates of Return Return 1 YEAR Added Value 5 YEARS OR SINCE INCEPTION* Return Added Value INCEPTION YEAR BENCHMARK NAME Active Fixed Income Universe FTSE TMX Universe Tactical Fixed Income Universe FTSE TMX Universe Integrated Fixed Income Universe FTSE TMX Universe Active Fixed Income Long-Term FTSE TMX Long Term High Yield Bonds High Yield Blended Preferred Shares S&P/TSX Preferred Share Infrastructure Bonds * 1.97* 2011 FTSE TMX Provincials Long Term *If inception date is less than 5 years 13

14 Investment Performance (September 30, 2014) Traditional Strategies Equity Annualized Rates of Return Return 1 YEAR Added Value 5 YEARS OR SINCE INCEPTION* Return Added Value INCEPTION YEAR BENCHMARK NAME Canadian Equity Value S&P/TSX Composite Canadian Equity Growth S&P/TSX Capped Canadian Equity Core S&P/TSX Composite High Income Equity S&P/TSX Composite HD Canadian Equity Small Cap Core S&P/TSX Small Cap Canadian Equity Small Cap S&P/TSX Small Cap US Equity S&P 500 CAD International Equity * 5.15* 2010 MSCI EAFE Net CAD Global Equity MSCI World Net CAD *If inception date is less than 5 years 14

15 Investment Performance (September 30, 2014) Alternative Strategies and Others Annualized Rates of Return ALTERNATIVE North American Market Neutral Fund Return 1 YEAR Added Value 5 YEARS OR SINCE INCEPTION* Return Added Value INCEPTION YEAR BENCHMARK NAME FTSE TMX T-bill 91 days Long / Short Equity Fund * 13.83* 2010 FTSE TMX T-bill 91 days Global Macro Fund FTSE TMX T-bill 91 days Absolute Bond Yield Fund * -0.73* 2010 FTSE TMX T-bill 91 days Currency Management Fund FTSE TMX T-bill 91 days Diversified Lending Fund FTSE TMX T-bill 91 days Multi-Strategy Income Fund * 4.12* 2009 FTSE TMX Short Term Infrastructure Fund 5.23 N/A 4.64* N/A 2010 No Benchmark Real Estate Fund 5.29 N/A 4.31* N/A 2013 No Benchmark Fixed Income and Currency Arbitrage Fund * 1.91* 2013 FTSE TMX T-bill 91 days Balanced Core Balanced Core Blended Balanced Integrated * 1.54* 2013 Bal. Integrated Blended Balanced Bal. Blended Benchmark *: If inception date is less than 5 years 15

16 Outlook Positive outlook on markets Strong pipeline of business opportunities in institutional and private wealth Future acquisitions: active in the U.S. Focus on delivering investment performance and innovative solutions to growing client base 16

17 Question Period 17

18 Thank you

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