Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Canaccord Capital — Shareholder Meeting (August 2007)
34 slides from Canaccord Genuity's shareholder meeting presentation, Aug 2, 2007
Slide 1: August 2, 2007 Fairmont Hotel Vancouver
August 2, 2007 Fairmont Hotel Vancouver
Slide 2: 2007 AGM Agenda
2007 AGM Agenda 1. Opening Remarks by the Chairman of the Board: Peter M. Brown 2. Official Business of the Meeting: Paul D. Reynolds 3. Financial Review of FY2007 and Q1/08: Bradley W. Kotush 4. Report of the President and CEO: Paul D. Reynolds 2
Slide 3: Opening Remarks
OPENING REMARKS Peter M. Brown, Chairman of the Board
Slide 4: Official Business
OFFICIAL BUSINESS Paul Reynolds, President & CEO
Slide 5: Official Business of the Meeting
Official Business of the Meeting • Introduction of Directors, Auditors and External Legal Counsel • Appointment of scrutineer and report on attendance and quorum 5
Slide 6: Official Business of the Meeting
Official Business of the Meeting • Notice of Meeting and minutes of last Meeting 6
Slide 7: Official Business of the Meeting
Official Business of the Meeting • Appointment of auditors and remuneration: Ernst & Young LLP Chartered Accountants Vancouver, B.C. 7
Slide 8: Official Business of the Meeting
Official Business of the Meeting • Election of Directors: Peter M. Brown Terrence A. Lyons Arpad A. Busson Paul D. Reynolds William J. Eeuwes Mark G. Maybank Michael D. Harris Michael A. Walker Brian D. Harwood John B. Zaozirny Timothy J.D. Hoare 8
Slide 9: Official Business of the Meeting
Official Business of the Meeting BE IT RESOLVED, as an ordinary resolution, that the Long Term Incentive Plan of the Company, comprising, collectively, the separate Long Term Incentive Plan (Canada), Long Term Incentive Plan (United States), and Long Term Incentive Plan (United Kingdom), tabled at t
Slide 10: Official Business of the Meeting
Official Business of the Meeting BE IT RESOLVED, as an ordinary resolution, that the provisions of the Long Term Incentive Plan of the Company relating to shareholder approval for further amendment be amended so that shareholder approval is specifically required for the following [marked to show the
Slide 11: Review of Financial Performance
REVIEW OF FINANCIAL PERFORMANCE Bradley W. Kotush, CFO
Slide 12: Caution re: Forward Looking Statements
Caution re: Forward Looking Statements Caution regarding forward-looking statements: This presentation may contain certain forward-looking statements. These statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events including bus
Slide 13: Growth in Revenue and Net Income
Growth in Revenue and Net Income REVENUE (C$ MILLIONS) NET INCOME (C$ MILLIONS) R AG CAGR 38 % C 32% 100 $93 $81 800 $757 80 700 $583 600 60 $49 500 $433 400 40 300 200 20 100 0 0 2005 2006 2007 2005 2006 2007 Fiscal Year Fiscal Year * p.p.: percentage points 13
Slide 14: Q1/08: Revenue and Income Growth
Q1/08: Revenue and Income Growth Q1/08 REVENUE (C$ MILLIONS) Q1/08 NET INCOME (C$ MILLIONS) th 9% Grow 1 th $245.9 G r ow 250 50 % 50 $206.1 $39.0 200 40 150 30 $25.9 100 20 50 10 0 0 Q1/07 Q1/08 Q1/07 Q1/08 14
Slide 15: Q1/08: Increase in EPS and ROE
Q1/08: Increase in EPS and ROE Q1/08 DILUTED EPS Q1/08 ROE r o wth G 48% . 5 p.p .* 6 $0.80 50 0.80 41.2% 40 34.7% 0.60 $0.54 30 0.40 20 0.20 10 0.00 0 Q1/07 Q1/08 Q1/07 Q1/08 * p.p.: percentage points 15
Slide 16: Strategically Managing Capital
Strategically Managing Capital • We are well capitalized • $25 million subordinated debt facility adds leverage • Strong ROE • Dividend increase to $0.125 per share per quarter, up 25% (in C$ millions) Q1/08 Q1/07 Working capital $303.7 $289.7 Cash & cash equivalents $329.6 $377.0 Shareholders’ equi
Slide 17: Ideas for Action
IDEAS FOR ACTION Paul Reynolds, President & CEO
Slide 18: Canaccord – Focused on the Mid Market
Canaccord – Focused on the Mid Market • Publicly listed on AIM and TSX (CCI) • Equity sales, trading, banking and research in US, UK Calgary and Canada1 Montreal London Vancouver Toronto • Ability to list companies in 3 countries on 7 exchanges Chicago Boston San Francisco New York • 1,673 employees
Slide 19: Vision: State of the Brokerage Industry in 5 Years (2012)
Vision: What will the State of the Brokerage Industry be in 5 Years (2012)? • It will be more global and focused – Relaxation of foreign content limitations in Canada – Successful firms will have niche oriented strategy – Clients expecting more global level of service – best execution + best ideas •
Slide 20: Winning Culture
Winning Culture • Team-based, client-focused, consensus-driven culture • Dedicated to attracting, motivating and retaining the very best people globally • We are in the “smart people business” • Idea-driven • Provide the resources for people to excel 20
Slide 21: Seven Values that Drive our Business
Seven Values that Drive our Business 1 We put our clients first 2 A good reputation is our most-valued currency 3 Ideas are the engine of our business 4 We are an entrepreneurial, hard-working culture 5 We strive for client intimacy 6 We are dedicated to creating exemplary shareholder value 7 We are
Slide 22: Our Key Business Lines
Our Key Business Lines Contribute to Diversification CANACCORD CAPITAL INC. FY2007 SEGMENTED REVENUE (% OF REVENUE, FY2007) TOTAL: C$756.9 MILLION C$272.6M 36% C$449.7M 59% C$34.6M 5% Canaccord Adams Private Client Services Corporate and Other 22
Slide 23: Private Client Services: Strong Growth in F2007
Private Client Services: Strong Growth in F2007 TOTAL REVENUE (C$ MILLIONS) INCOME BEFORE TAXES (C$ MILLIONS) 21% 15% 300 $272.6 $70.5 75 $61.2 250 $225.2 200 50 150 100 25 50 0 0 2006 2007 2006 2007 Fiscal Year Fiscal Year 23
Slide 24: Steady Growth in AUM and AUA
Steady Growth in AUM and AUA ASSETS UNDER MANAGEMENT1 ASSETS UNDER ADMINISTRATION (AUM) (C$ MILLIONS) (AUA) (C$ BILLIONS) R GR $807 C AG C A 23% $15.0 % 82 $613 $14.3 $10.0 $380 $8.3 $237 $5.0 $5.0 $4.4 $104 $51 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 Fiscal Year Fiscal
Slide 25: Focus on Wealth Management Gaining Traction
Focus on Wealth Management Gaining Traction AUA / INVESTMENT ADVISOR PRIVATE CLIENT SERVICES (C$ MILLIONS) REVENUE AS % AUA 3.17% $33 $34 $24 2.12% 1.82% 1.94% 1.82% $21 1.79% 1.57% $12 $13 $11 2001 2002 2003 2004 2005 2006 2007 2001 2002 2003 2004 2005 2006 2007 Fiscal Year Fiscal Year 25
Slide 26: Expanding our Product Offerings
Expanding our Product Offerings Expansion of Wealth Management Services: • Financial Planning Specialists • Foundation Software • Alliance Program – AUM now totals C$700 million • Private Investment Management – AUM already over C$95 million • Azure, SEI, and other managed products are growing our f
Slide 27: Diversification: Integral to our Success
Diversification: Integral to our Success CANACCORD ADAMS SECTOR COVERAGE FY2005 FY2007 (% of transaction revenue) (% of transaction revenue) 2% 11% 4% 19% 16% 30% 42% 12% 41% 23% (% of transactions) (% of transactions) 22% 25% 39% 34% 30% 20% 7% 7% 14% 2% Mining & Metals Energy Technology Life Scien
Slide 28: Canaccord Adams Financings – 2007
Canaccord Adams Financings – 2007 • Investment Banking led or co-led deals raised in excess of C$4.6 billion1 CYTD, including: New Issue May 2007 New Issue March 2007 New Issue May 2007 IPO June 2007 New Issue February 2007 New Issue February 2007 New Issue May 2007 New Issue March 2007 New Issue Ma
Slide 29: Competitive Market Position in Canada
Competitive Market Position in Canada • Canaccord Adams’ investment banking team has led the greatest number of equity offerings of any investment dealer YTD Equity Offerings Over $1.5MM1 for the Period January 1st to July 31st, 2007 # of Deals Total Proceeds Participation in Total Proceeds Rank Man
Slide 30: Canaccord, CPP, Canadian Bank-owned Dealers to Launch New ATS
Canaccord, CPP, 6 Canadian Bank-owned Dealers to Launch New Alternative Trading System • “7 of Canada’s leading investment dealers today [May 3, 2007] announced their intention to establish a new Alternative Trading System (ATS) that will increase the country’s equity trading efficiencies and make C
Slide 31: Canaccord Adams is the #1 Stockbroker on AIM by Price Performance
Canaccord Adams is the #1 Stockbroker on AIM by Price Performance • Canaccord Adams ranked #1 in the Times’ survey for best return on client investment in fundraisings for the period January 2004 to December 2006 Stockbroker Performance By Average Value of £1,000 invested at issue • Canaccord Adams
Slide 32: US Platform Gaining Traction
US Platform Gaining Traction Top 10 U.S. PIPE Agents — 2007 YTD • Six high margin PIPE transactions in 3 different By number of completed transactions from 1/1/2007 to 7/12/2007. sectors Rank Placement Agent Deals 1 Amount Raised 1 Rodman & Renshaw, LLC 31 $554,119,697 • Six IPO covers for the new m
Slide 33: Canaccord Capital Inc. 2007 Annual General Meeting
Canaccord Capital Inc. 2007 Annual General Meeting
Slide 34: Q&A Format – Senior Management Participants
Q&A Format – Senior Management Participants Peter Brown Chairman Paul Reynolds President & CEO Mark Maybank COO Brad Kotush CFO 34
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