1. AGF MANAGEMENT LIMITED
Scotia Capital Financials Summit
Tuesday September 14, 2004
Blake C. Goldring, CFA
President and Chief Executive Officer
Randy Ambrosie
Executive Vice-President,
Sales and Marketing
AGF: A GLOBAL INVESTMENT MANAGEMENT COMPANY
Established in 1957
Market capitalization: $1.6 billion
Total assets under management: $31.1 billion
Dividend yield: 2.51%
August 31, 2004
2. CORPORATE PROFILE — BUSINESS SEGMENTS
Investment Management AGF Trust Fund Administration
AGF Funds Inc. Unisen Inc.
Top supplier to
advisors of loans,
AGF PIM mortgages and GICs
Investmaster
AGF Asset Management
Asia – Singapore
AGF International Advisors
Co. Ltd. – Dublin
Business segment share of pre-tax income
Investment AGF Trust and
Management Fund Administration
95% 5%
Fiscal year to date — 2004
COMPETITIVE ENVIRONMENT
MUTUAL FUND INDUSTRY LIFE CYCLE
• Encourage rival exit—
invest to extend market
• Maintenance leadership
investments • Cut costs to sustain
INDUSTRY
• Strong cash flow cash flow
• Invest for growth—
reinvest modest
cash flow
• Large investment
• Cash flow negative
INTRODUCTION GROWTH MATURITY DECLINE
3. COMPETITIVE ENVIRONMENT
CHALLENGING CYCLICAL FACTORS
2004 YTD Industry Net Sales*
Mortgage & Real Estate 2%
Dividend & Income 31%
Balanced 25%
Canadian Common Shares 0%
US and Foreign Shares 6%
Bond & Income 36%
Equity funds have been 6% of total
industry sales 2004 YTD.
* Calendar year to July, 2004
COMPETITIVE ENVIRONMENT
EMERGING CYCLICAL TRENDS
Fund Type — July, 2004*
1% 2% 1%
100%
11%
23%
80% 14%
43%
17%
60%
14%
40% 74%
59%
20% 41%
0%
Industry Banks AGF
Equities Balanced Fixed Income Real Estate
* IFIC
4. STRATEGIC PRIORITIES
• Reinforce investment management excellence
• Build a client centric organization focused on
multi-channel distribution
• Pursue strategic acquisitions to supplement
organic growth
• Undertake disciplined review of support entities
STRATEGIC PRIORITIES
• Reinforce investment management excellence
• Build a client centric organization focused on
multi-channel distribution
• Pursue strategic acquisitions to supplement
organic growth
• Undertake disciplined review of support entities
5. LONG-TERM PERFORMANCE TELLS A STORY:
STRENGTH IN NUMBERS
Fund Performance Comparison — July 31, 2004
% of Total Assets Above Median
COMPANY FIVE YEAR TEN YEAR
AGF 61% 75%
C.I. 49% 28%
CIBC 47% 37%
Fidelity 70% 73%
IG 41% 21%
MacKenzie 61% 87%
Royal Bank 51% 29%
TD Bank 55% 82%
AIM/Trimark 92% 54%
Source: BellCharts as at July 31, 2004
Top companies by assets
OUR CATEGORY KILLER POTENTIAL
• AGF Canadian Real Value Fund
– We have one of the best value managers in the business in Keith Graham
• AGF European Equity Fund
– #2 European Equity Fund Manager Worldwide — Mercer
Investment Consulting*
• AGF International Value Fund
– Harris Associates named one of Kiplinger’s top 10 U.S. fund companies
• Harmony
– “AGF Harmony was the only wrap program that advanced in
asset ranking last year . . . and posted the highest year-over-year [AUM]
growth rate for 2003”**
* Source: Financial Times, in a survey conducted by Mercer Investment Consulting for the three years
ended December 31, 2003
** Source: Investor Economics, Fee-based Report: Winter 2004, HEFW Category
6. INVESTMENT MANAGEMENT — TACTICS
1. Clarify and articulate each fund’s philosophy and style
2. Investigate sub brand strategy
3. Review our investment disciplines
– Extract better performance from our processes
STRATEGIC PRIORITIES
• Reinforce investment management excellence
• Build a client centric organization focused on
multi-channel distribution
• Pursue strategic acquisitions to supplement organic
growth
• Undertake disciplined review of support entities
7. AGF MANAGEMENT LIMITED
Randy Ambrosie
Executive Vice-President,
Sales and Marketing
U.S. MUTUAL FUND COMPANIES BY
DISTRIBUTION TYPE
TOTAL ASSETS CHANGE IN MARKET
MAY ’04 ($ billions) SHARE — YTD
Industry 4,934 — DISTRIBUTION STRATEGY
1. Vanguard 623.6 0.29%
2. Fidelity 613.0 -0.09%
3. American Funds 534.4 0.62% Direct
4. Franklin Templeton 196.2 -0.06%
5. PIMCO Funds 149.1 0.03%
6. Putnam 119.0 -0.34%
7. T Rowe Price 115.2 0.08% Independent
8. OppenheimerFunds 95.2 -0.01% Advisors
9. Barclays Global 76.9 0.33%
10. Janus 74.5 -0.22%
11. MFS 73.6 -0.12% Vertically
12. AIM Investments 73.5 -0.17% Integrated
13. American Century 71.8 -0.02%
14. Scudder 61.9 -0.10%
15. American Express 60.9 -0.11%
Source: Investor Economics
8. PERCENT OF A TYPICAL CANADIAN ADVISOR’S SALES
BY FUND FAMILY
0 10 20 30 40 50 60
these fund families
Core supporter of
Rank 1
Rank 2
Rank 3
Rank 4
Second-tier supporter
of these fund families
Rank 5 2003
Rank 6 2003e
2002
Rank 7
2001
Rank 8 2000
Top 4 fund families =
On average, advisors 90% of sales in 2003
continue to represent 6.4
fund families.
BUT! 84% of sales in 2002
83% of sales in 2001
84% of sales in 2000
BOTTOM UP APPROACH
ADVISOR CHANNEL
• Increase coverage capabilities
– 29 core coverage teams
• Rationalize sales team compensation
– New assets
– Asset retention
• Additional coverage
– Strategic relationships
9. CLIENT CENTRIC — SALES TACTICS
Sales & Marketing
Customer
Advisor National Institutional Product Marketing
Relationship
Sales Accounts Sales Development Services
Management
STRATEGIC PRIORITIES
• Reinforce investment management excellence
• Build a client centric organization focused on
multi-channel distribution
• Pursue strategic acquisitions to supplement
organic growth
• Undertake disciplined review of support entities
10. STRATEGIC ACQUISITIONS —
AGF PRIVATE INVESTMENT MANAGEMENT
Targets:
• 50% cash flow margins
• 15-20% ROI Montreal
•$1.2B in assets
•Core Value
•Large Cap
Vancouver Calgary Toronto Ottawa
• $2B in assets • Organic growth • Organic • $1B in assets
• Oil & Gas • Leverage PM’s growth • Core Value
• Small Cap in Vancouver • Fixed Income
STRATEGIC PRIORITIES
• Reinforce investment management excellence
• Build a client centric organization focused on
multi-channel distribution
• Pursue strategic acquisitions to supplement organic
growth
• Undertake disciplined review of support entities
11. SUPPORT BUSINESSES — AGF TRUST
AGF TRUST
• Leverages financial advisor offerings through loans,
mortgages and GICs
• Consumer loans (investment and RSP) rose 16% in
Q2 2004 versus Q1 2004
• Net income for Q2 2004 up 160%* over Q2 2003
*Increase does not include one-time gain of $0.6 million in Q2 2004
SUPPORT BUSINESSES — AGF TRUST
AGF Trust — Income Before Taxes AGF Trust — Total Assets
($ 000’s) ($ 000’s)
9,000 800,000
8,000 700,000
7,000
CAGR CAGR
6,000 41% 600,000 43%
5,000 500,000
4,000 400,000
3,000
300,000
2,000
1,000 200,000
- 100,000
2000 2001 2002 2003 2004 2000 2001 2002 2003 2004
annualized forecast
12. SUPPORT BUSINESSES
• Administration and/or technology solutions for 28 million
investment fund accounts with $210 billion in assets
• Over 170 client relationships
• EBITDA for the fund administration segment for YTD
2004 up 156% over prior year
May 31, 2004
YTD 2004 RESULTS — DRIVING MOMENTUM
Revenue up 13.4%
Cash flow from operations up 26.7%
EBITDA up 13.8%
Net income up 55.5%
Includes $7.1 million tax benefit realized in Q2 2004.
Does not include $12.8 million capital gain in Q1 2003.
13. STRENGTH IN KEY MEASURES — BUSINESS GROWTH
EBITDA and Cash Flow Growth
$350,000
CAGR: 28%
$300,000
$250,000 CAGR: 33%
$200,000
$150,000
$100,000
$50,000
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Year annualized
EBITDA Cash Flow From Operations
UTILIZATION OF FREE CASH FLOW
($ millions)
160 Debt Reduction
140 Dividends
Acquisitions
120
Share Repurchases
100
80
60
40
20
0
2002 2003 2004*
*2004 Data
• Debt reduction is a forecast
• Dividends and share repurchases are YTD annualized
• Acquisitions are YTD
14. DIVIDEND GROWTH —
A PRIORITY USE OF FREE CASH FLOW
Annual Dividends Paid Per Share*
$0.50
$0.40
CAGR 24%
$0.30
$0.20
$0.10
$0.00
'97 '98 '99 '00 '01 '02 '03 '04
annualized
Dividends increased 37.5% in Q2 2004
to an annual rate of $0.44 per share
*Fiscal years ending November 30
RECOGNIZED LONG-TERM OUTPERFORMANCE
20-year performance among the 79 companies in the
S&P/TSX composite that have been listed on the TSX for
20 years ending Nov 25 2003. Reported by National Post
BUSINESS February 2004.
15. FORWARD LOOKING INFORMATION
This presentation contains certain forward-looking
statements that are made based on management’s
judgment and expectations but are inherently subject to
risks and uncertainties beyond the Corporation’s control.
These risks and uncertainties include economic conditions,
market fluctuations, interest rate and foreign exchange
movements, political events, regulatory change and
competitive developments. Actual results may differ
materially from those anticipated in the
forward-looking statements.