Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (November 2024)
29 slides from Canaccord Genuity's investor presentation, November 2024
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation November 2024
Slide 2: Forward looking statements and non-IFRS measures
Forward looking statements and non-IFRS measures This document may contain ‘‘forward-looking statements’’ (as defined under applicable securities laws). These statements relate to future events or future performance and reflect management’s expectations, beliefs, plans, estimates, intentions and sim
Slide 3: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $857 M $110 bn YTD REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment $17.2 bn 186 helping individual investors, private clients and b
Slide 4: Financial highlights
Financial highlights Pre-tax Pre-tax Net Revenue1 Diluted EPS1 profit Income1,2 margin1 Q2 Fiscal 2025 $427.6 M $42.3 M $0.20 9.9% 3 months ended +26.7% y/y +156.4 % y/y n.m. +5.0 p.p. y/y September 30 YTD Fiscal 2025 $856.6 M $77.1 M $0.33 9.0% 6 months ended +25.8% y/y +56.1% y/y n.m. +1.7 p.p. y/
Slide 5: Defensive revenue mix provides downside protection
Defensive revenue mix provides downside protection Increased contributions from Wealth Management and Advisory have helped to reduce our reliance on underwriting activity Significantly invested in growing our wealth management businesses in Canada, the UK and Australia Advancing organic and inorga
Slide 6: Investments targeted towards addressable markets
Investments targeted towards addressable markets Disciplined focus on growing contributions from global wealth management and capital markets advisory Steadily increasing revenue contributions from wealth management Targeted investments to increase capital markets M&A revenue contributions C$ millio
Slide 7: Managing our expenses carefully in a reduced revenue environment
Managing our expenses carefully in a reduced revenue environment Advancing our core capabilities while managing our expenses carefully Q/Q change Q/Q change C$ millions $8.5 $3.0 $1.5 $140.0 $0.0 $0.0 $0.0 $0.5 $134.8 $8.2 $121.8 -$5.5 Conference costs and increased Continued Supporting our investme
Slide 8: Increasing employee ownership supports our partnership culture
Increasing employee ownership supports our partnership culture Independently governed Limited Partnership owned by Excellent progress towards our objective employees • More than 40% of outstanding shares held by senior • Acquired approximately 9.7% of outstanding CF officers, employee LTIP, and the
Slide 9: Global Wealth Management
Global Wealth Management An important source of earnings power and stability in difficult markets H1/25 CLIENT ASSETS H1/25 REVENUE H1/25 PRE-TAX NET INCOME1 H1/25 PRE-TAX PROFIT MARGIN1,2 $110 bn $432 M $71 M 17% Total Client Assets - C$ billions, Total Wealth Management Revenue Pre-tax net income
Slide 10: CG Wealth Management: Advancing core growth momentum
CG Wealth Management: Advancing core growth momentum H125 profitability was modestly impacted by increased interest costs and development costs in connection with our growth priorities LTM AS AT SEPTEMBER 30, 2024 Pre-tax net Avg. pre-tax profit Revenue Total client assets Fee-based assets Priority
Slide 11: Advancing our priority of increasing share of fee-based client assets
Advancing our priority of increasing share of fee-based client assets Growth supported by organic and inorganic growth initiatives Canada UK & Crown Dependencies C$ millions, fiscal years ended March 31 C$ millions, fiscal years ended March 31 H1 2025 ended September 30, 2024 H1 2025 ended September
Slide 12: CG Global Wealth Management: Strengthening margins and earnings contributions
CG Global Wealth Management: Strengthening margins and earnings contributions On track to create substantial value in this segment INVESTING WITH DISCIPLINE TO ADVANCE OUR LONG-TERM EARNINGS POTENTIAL (Revenue in C$ thousands, F2020 F2021 F2022 F2023 F2024 H1/24 H1/25 AUA/AUM in C$ millions) Pursuin
Slide 13: HPS: A strategic and financial partner for our UK wealth management business
HPS: A strategic and financial partner for our UK wealth management business • HPS1 invested £125million (July 2021) and £65.3 million (May 2022) by way of convertible preferred shares • Management and employees of CGWM UK purchased £7.5 million of preferred shares alongside HPS in July 20212 • As a
Slide 14: CG Global Capital Markets: A powerful mid-market competitor
CG Global Capital Markets: A powerful mid-market competitor Diverse revenue streams provide stability and profitability through market cycles H1/25 REVENUE H1/25 TRANSACTIONS H1/25 PROCEEDS RAISED $407.7 M 186 $17.2 bn Total Capital Markets Revenue Revenue by Activity C$ millions, Fiscal years ended
Slide 15: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of driving value for clients in all market environments Excludes significant items1 F2021 F2022 F2023 F2024 H1/24 H1/25 DIFFERENTIATED GLOBAL PLATFORM Revenue $443,444 $341,453 $148,356 $166,649 $65,27
Slide 16: CG Global Capital Markets
CG Global Capital Markets Disciplined mid-market focus, differentiated by scale, global capability, and stability Integrated capabilities provide unparalleled Disciplined focus in key growth sectors of the Deep regional expertise, differentiated by aftermarket support and facilitate lasting global e
Slide 17: Disciplined sector focus
Disciplined sector focus Allows us to provide globally integrated services and expertise throughout market cycles COMBINED ADVISORY & UNDERWRITING REVENUE BY SECTOR ALL GEOGRAPHIES – H1 2025 ALL CANADA U.S AUSTRALIA UK & EUROPE GEOGRAPHIES 19% of H1/25 55% of H1/25 11% of H1/25 16% of H1/25 Capital
Slide 18: Global Investment Banking
Global Investment Banking H1/25 Global Investment Banking Revenue by Sector Unparalleled origination and placement capability Consumer 5% • H1/25 Investment Banking revenue improved by 93.5% y/y • Agility allows us to harness leadership in emerging and high-growth segments while maintaining strong c
Slide 19: Global Advisory
Global Advisory H1/25 Advisory Revenue by Sector Increased contributions support margin strength Consumer Other 11% 14% Life • H1/25 Advisory revenue increased 68.2% y/y reflecting improving environment for completions Metals & Sciences Mining 8% • Strong track record of ECM activity in core sectors
Slide 20: Global Distribution and Trading
Global Distribution and Trading Leading independent franchise for best-in-class execution capabilities • Geographically broad and deep relationships covering 2,260+ institutions • Range of multi-asset capabilities (cash equities, fixed income, electronic trading, options, risk arbitrage) • Market ma
Slide 21: CG Principles of Corporate Social Responsibility and Sustainability
CG Principles of Corporate Social Responsibility and Sustainability ESG approaches to supporting the well-being of our employees, clients and communities Operate with Integrity Respect People and Communities Respect our Planet We are committed to conducting our business in We think locally and globa
Slide 22: CG in the Community
CG in the Community Qredkite., S) Schulich 9 Ronald McDonald House Charities |. Austratia School of Business : fr RAINBOW eg SAVE A CHILD'S HEART RAILROAD WCHI i ios SF-MARIN " FOOD BANK Healthcare | REVOLUTIONIZED te. ¥¢IndigenousWorks Food on Ql) PY cor Okanagan she Canada Food Bank FOOD BANK ‘The
Slide 23: (TSX:CF): An Excellent Investment Proposition
(TSX:CF): An Excellent Investment Proposition Driven to create enduring value for our employees, clients and shareholders Management and employees are in Strong balance sheet supports our complete alignment with capacity to invest in future growth shareholders Growing wealth management Increasing co
Slide 24: Analyst coverage
Analyst coverage Ventum Capital Cormark Securities Raymond James TD Securities Inc. Jeff Fenwick Markets Stephen Boland Graham Ryding Rob Goff Canaccord Genuity Group Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performa
Slide 25: Financial highlights
Financial highlights Q2 Fiscal 2025 Page 25
Slide 26: Consolidated results: Three and six months ended September 30, 2024
Consolidated results: Three and six months ended September 30,2024 Improved business mix contributes to earnings stability through market cycles Q/Q Y/Y C$ millions (except per share data) 1 Q2/25 Q2/24 H1/25 H1/24 Change Change Revenue $427,619 $337,508 26.7% $856,580 $680,951 25.8% • Wealth Manage
Slide 27: Global Wealth Management
Global Wealth Management Three and six months ended September 30, 2024 Wealth Management revenue by region1 C$ millions, fiscal quarters $215.9 $216.5 Q/Q Y/Y Y/Y $197.1 $191.0 $195.0 $200.7 $179.7 $187.2 Q2/25 Q1/25 Change Q2/24 Change H1/25 H1/24 Change Revenue - Canada 87,965 90,022 -2.3% $70,813
Slide 28: Global Capital Markets
Global Capital Markets Three and six months ended September 30, 2024 Capital Markets Revenue by region C$ millions, fiscal quarters $226.1 Q/Q Y/Y Y/Y $202.9 $205.6 $202.1 $196.9 $189.8 (C$ millions except percentages) Q2/25 Q1/25 Change Q2/24 Change H1 2025 H1 2024 Change Commissions & Fees $34,600
Slide 29: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Q2/25 Q1/25 C$ millions (except for per share amounts and numb er of shares) (As at September % Change Strong, liquid balance sheet protects our ability (As at June 30,2024) 30,2024) to compete efficiently
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