Investor Presentation

Transcription

1 Investor Presentation CONNECTING THE GLOBAL COMMERICAL REAL ESTATE MARKETPLACE TSX: AIF July 2018

2 Forward Looking Statements Certain information in this presentation may constitute forward-looking information within the meaning of applicable securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes information that relates to, among other things, objectives, strategies and intentions, and future financial and operating performance and prospects. Generally, forward-looking information can be identified by use of words such as may, will, expect, believe, plan, would, could and other similar terminology. All of the forward-looking information in this presentation is qualified by this cautionary statement. Forward-looking information includes, but is not limited to, the discussion of Altus Group s business and operating initiatives; its expectations of future performance for its various business units and its consolidated financial results; and its expectations with respect to cash flows and its level of liquidity. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Altus Group at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that were identified and were applied by Altus Group in drawing conclusions or making forecasts or projections set out in the forwardlooking information include, but are not limited to: the successful execution of Altus Group s business strategies; consistent and stable economic conditions or conditions in the financial markets; consistent and stable legislation in the various countries in which Altus Group operates; no disruptive changes in the technology environment; the opportunity to acquire accretive businesses; the successful integration of Altus Group s businesses; and the continued availability of qualified professionals. Inherent in the forward-looking information are known and unknown risks, uncertainties and other factors that could cause Altus Group s actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking information. Given these risks, uncertainties and other factors, investors should not place undue reliance on forward-looking information as a prediction of actual results. The forward-looking information contained herein is current as of the date of this presentation and, except as required under applicable law, Altus Group does not undertake to update or revise it to reflect new events or circumstances. Additionally, Altus Group undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus Group, its financial or operating results, or its securities. Please consult Altus Group s most recent regulatory filings on SEDAR for more information on the Company s forward-looking statements. Altus Group uses certain non-ifrs measures (such as Adjusted EBITDA and Adjusted EPS), and as indicators of financial performance. Readers are cautioned that they are not defined performance measures under IFRS and may differ from similar computations as reported by other similar entities and, accordingly, may not be comparable to financial measures as reported by those entities. We believe that these measures are useful supplemental measures that may assist investors in assessing an investment in our shares and provide more insight into our performance. 2

3 Altus Group at a Glance C O N N E C T I N G T H E G L O B A L C O M M E R I C A L R E A L E S T A T E M A R K E T P L A C E MAXIMIZE THE VALUE of CRE assets & portfolios through: Software & data solutions for CRE investment management Independent technology-enabled CRE professional services 3

4 Uniquely Positioned Market Leader Established Market Leader Market Standard Software & Data Solutions Global Scale Depth in Expert Services Unmatched Global Blue Chip Client Base Strong Financial Profile Leading provider of independent advisory services, software and data solutions to the global CRE industry Heavily embedded in customers daily workflows Market standard software solutions for global CRE property & portfolio analysis Market standard for investment performance benchmarking & attribution analysis standard for US CRE institutional investors Leading provider of Canadian real estate market data Headquartered in Canada, with 75 offices & 2,500+ employees in major markets across North America, Europe & Asia Pacific Trusted CRE advisor in property tax management, valuations, market research, development cost consulting & project management, and geometrics services Leading market share in CRE consulting practices Serving the world s largest CRE industry participants Solid balance sheet with strong cash generation Strong track record of profitable organic growth and accretive acquisitions Long-standing and sustainable dividend policy in place 4

5 Favorable Market Trends Emerging trends solidify the need for our independent services, software and data offerings Increasing need for data analytics & software (limited historical investment in industry) DATA COMPLEXITY MARKET COMPETITION NEED FOR TRANSPARENCY GLOBALIZATION WITH LOCAL INSIGHTS LIQUIDITY OF ASSETS Centralised, normalised, intelligent data Capture opportunities better, faster, quicker Rising demand for better risk management, compliance and auditability Global relevancy, local insights Alternative to equity investment Higher intelligence on baseline value 5

6 Representative Companies Information Services Model Moving Towards Analytics Applications & Services Characteristics Business models characterized by high margins, operating leverage, low capex and strong free cash flow Proliferation of data and low computing costs driving demand for Big Data Analytics Strong demand for proprietary data supported by predictive analytics embedded in workflows FINANCIAL TECHNOLOGY & TRANSACTION PROCESSING Labour arbitrage and economies of scale are disappearing clients demand better outcomes INFORMATION SERVICES Leveraging data to deliver insights and outcomes STRATEGIC OUTSOURCING Transaction processing efficiency is no longer a differentiator customers demand insights Source: Wells Fargo Securities 6

7 ARGUS Software Roadmap MODERN Cloud Workflow Sync Analytics GLOBAL Canada USA UK Europe Australasia APPLICATIONS Global Asset & Investment Management Data & Performance Attribution Development Feasibility & Management 10/10 Top Global Service Providers AE Clients 600+ AOD Clients 225/350 Top Global Asset Managers Development Clients

8 Altus Group Global Standard Multiple Tier Approach Global Investment Management Information Solutions Top 300 Asset Managers Valuation Tools Geographies USA CANADA UK FRANCE GERMANY NORDICS ASIA AUS GLOBAL DATA STANDARD 80 Global Funds $650B Assets Under Management 20+ Countries 7,500+ Assets 10,000+ Appraisals Annualy 22 ODCE Funds 10/10 Top Global Service Providers 600+ AOD Clients 2,000+ Development Clients 3,500+ AE Clients 70+ Countries 225/350 Top Global Asset Managers GLOBAL VALUATION STANDARD 8

9 Technology-Enabled Services Modernization Through Technology Leading provider of independent CRE advisory services Services provide access to robust CRE data Unparalleled insights and efficiencies provided by Altus Analytics Pursuing investments in technology to leverage extensive proprietary databases, drive internal efficiencies & enhance client value Tax analytics platform for benchmarking and client management Historical valuation and construction cost benchmarking platforms Future potential for benchmark & index products Cross selling with Altus Analytics Property tax market consolidation opportunity in US & UK (Nov acquisition of CVS doubled our UK practice) APPRAISAL MANAGEMENT Understand How Assets Stack Up DataExchange & DataBridge PROPERTY TAX Optimize Property Tax & Expense Management Tax Analytics Platform VALUATION ADVISORY Gain Data-Driven Insight Canadian Market Data COST Evaluate & Manage Development Opportunities 9

10 Revenues and Adjusted EBITDA Revenues Adjusted EBITDA $500 $90 $450 $80 $400 $70 $350 $60 $300 $250 $200 $150 $324 $370 $416 $443 $478 $50 $40 $30 $57 $67 $63 $74 $82 $100 $20 $50 $10 $ $ % Revenue CAGR 8.0% 2017 Year- Over-Year Increase 9.4% EBITDA CAGR 11.0% 2017 Year- Over-Year Increase 10

11 Business Segment Performance 2017 YoY Chg. $500 $478 ALTUS ANALYTICS $400 $300 $442 $45 $96 V&C Advisory $49 $102 V&C Advisory Revenue Adj. EBITDA Margin $ % $ % 28.6% +1.5% CRE CONSULTING $200 $151 Global Tax $159 Global Tax Revenue Adj. EBITDA Margin $ % $ % 20.1% -1.0% $100 $0 $151 $ Revenue Adj. EBITDA Margin GEOMATICS $ % $ % 7.2% +9.1% Altus Analytics CRE Consulting Geomatics 11

12 Financial Strength

13 Corporate Leadership ROBERT COURTEAU Chief Executive Officer CARL FARRELL President ANGELO BARTOLINI Chief Financial Officer LIANA TURRIN General Counsel and Corporate Secretary ED ORLIK Chief Information Officer TRISH BALL Chief Human Resources Officer 13

14 Board of Directors ANGELA BROWN ROBERT COURTEAU CARL FARRELL TONY GAFFNEY Independent Director Chief Executive Officer Altus Group President Altus Group Independent Director DIANE MacDIARMID RAYMOND MIKULICH ERIC W. SLAVENS JANET WOODRUFF Independent Director Independent Chairman Independent Director Independent Director 14

15 CONNECTING THE GLOBAL REAL ESTATE MARKETPLACE TSX: AIF Appendix

16 Capital Markets Stats Included in S&P/TSX Composite Index SECURITY SYMBOLS MARKET CAPITALIZATION SHARES OUTSTANDING TSX: AIF $1.2 Billion 38.6 M RECENT SHARE PRICE $29.32 (July 13) 52-WEEK RANGE $37.89 / $ MTH AVG. TRADING VOLUME ~130,000 QUARTERLY DIVIDEND $0.15 per share (1.9% yield) ADJUSTED EPS $1.13 per share (2017) OWNERSHIP ~70% Institutions & ~10% Employees ANALYST COVERAGE BMO, Stephen MacLeod Canaccord, Yuri Lynk Cormark, Maggie MacDougall CIBC, Stephanie Price GMP, Deepak Kaushal National Bank, Richard Tse RBC, Paul Treiber Scotia, Paul Steep TD, Daniel Chan $40 $35 $30 $25 $20 $15 $10 $5 H H H H H H H H H H H Altus Group Limited - Price 16

17 Financial Performance By Business Segment In thousands of Cdn. dollars Q Q * % change Altus Analytics Revenues $ 40,536 $ 39, % Adjusted EBITDA 8,230 12,751 (35.5%) Adjusted EBITDA Margin 20.3% 32.5% CRE Consulting Property Tax $ 48,619 $ 33, % Valuation & Cost Advisory 25,249 24, % Revenues 73,868 57, % Property Tax 13,073 4, % Valuation & Cost Advisory 2,595 2,889 (10.2%) Adjusted EBITDA 15,668 7, % Adjusted EBITDA Margin 21.2% 12.3% Geomatics Revenues $ 10,446 $ 12,592 (17.0%) Adjusted EBITDA 50 1,246 (96.0%) Adjusted EBITDA Margin 0.5% 9.9% Consolidated Revenues $ 124,690 $ 109, % Adjusted EBITDA 15,508 13, % Adjusted EBITDA Margin 12.4% 12.2% * Restated for the impact of IFRS 15 17

18 Revenue Streams ALTUS ANALYTICS ARGUS software tools for CRE portfolio & investment management - for asset valuation, portfolio management, budgeting, forecasting, sensitivity analysis, data management, etc. Competitive Strengths: Industry valuation/ transactions standard (ARGUS Enterprise & DCF) Global footprint First to market advantage in CRE data management ~70% of Altus Analytics Revenues are Recurring Appraisal management advisory with data analytics tools - attribution analysis, benchmarking, risk analysis US industry standard in fund valuation data (used by 22/23 NCREIF open-end index funds) First to market in Europe Recurring revenues include data & software subscriptions & maintenance revenues Canadian market data subscription products (RealNet, Altus InSite, HPI) Largest CRE data provider in Canada Non-recurring includes licenses and services EXPERT SERVICES Property Tax management & administration services - tax assessment reviews, appeals & negotiations, expert witness services, etc. Valuation & advisory services valuations/appraisals, due diligence, market research, economic consulting, etc. Cost consulting and project management services - construction feasibility studies, budgeting, cost planning, risk management, loan monitoring, etc. Competitive Strengths: Cross-border capability Canadian & UK market leader One of top 5 providers in US Independence Canadian market leader in valuations & independent market research Canadian market leader & dominant position with developer market Strong presence in Asia Pacific Pricing for services is based on a fixed fee or time and materials fee basis, and for a significant number of projects in Property Tax, on a contingency basis Geomatics technical services - field & construction surveys, 3D scanning, internet mapping Market leader in geomatics services in Western Canada 18

19 CONNECTING THE GLOBAL COMMERICAL REAL ESTATE MARKETPLACE TSX: AIF altusgroup.com For investor inquiries, please contact: Ali Mahdavi Investor Relations