Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q3 2014 Earnings Presentation
34 slides from Canaccord Genuity's earnings presentation, Mar 18, 2014
Slide 1: Investor Presentation
CANACCORD GENUITY GROUP INC. To us there are no foreign markets.™ CANACCORD FINANCIAL INC. To us there are no foreign markets. Investor Presentation Fiscal Q3/14: March 2014
Slide 2: Caution regarding 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 regarding Canaccord’s growth, results of operations, performance and business prospects
Slide 3: Canaccord Genuity – A Global Investment Bank
Canaccord Genuity – A Global Investment Bank • Global M&A and Advisory franchise • Global Restructuring practice • Global Equity and Fixed Income distribution • Global wealth management provider TORONTO NEW YORK LONDON BEIJING • Publicly listed on the TSX and LSE VANCOUVER BOSTON DUBLIN HONG KONG BU
Slide 4: Two-thirds of revenue generated outside of Canada
Two-thirds of revenue generated outside of Canada FISCAL Q3/14 REVENUE BREAKDOWN C$ million 250.0 $231.0 More than two-thirds of ASIA-PACIFIC & OTHER 16.0 6.9% of fiscal Q3/14 revenues our revenue generated 200.0 outside of Canada 92.7 UK & EUROPE 150.0 40.1% of fiscal Q3/14 revenues Global diversif
Slide 5: Canaccord Genuity in Canada
Canaccord Genuity in Canada A leading Canadian capital markets practice Investment Banking Fixed Income • 60+ investment bankers • 14 professionals and growing • FY2013: Led 59 Canadian • Specialist in government and transactions, raising C$1.4 billion municipal corporate bond for clients issuances
Slide 6: Canaccord Genuity in the US
Canaccord Genuity in the US US Operation a key contributor to our global platform Investment Banking • 50 investment bankers - growing • FY2013: Led 12 U.S. transactions Minneapolis Boston International Equities raising C$487 million for clients New York •22 professionals trading – Chicago • FY2014
Slide 7: Canaccord Genuity in the UK and Europe
Canaccord Genuity in the UK and Europe An established UK and European securities and investment banking business UK Debt Markets and Investment Banking Fixed Income • 100+ investment bankers • 19 professionals and growing • FY2013: Led 19 UK & Europe Dublin • Active in UK retail bond market transact
Slide 8: Canaccord Genuity in Asia and Australia
Canaccord Genuity in Asia and Australia An elite capital markets practice focused on growth companies Investment Banking Research • 40 investment bankers - growing • 10 + research professionals Beijing • FY2013: Led 21 Asia & Australia covering over 80 stocks transactions, raising C$331 Energy mil
Slide 9: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors Fiscal 2014 YTD, % of revenue Fiscal 2011 – Fiscal 2013, % of revenue GLOBAL COMMITTED TO PROVIDING IN-DEPTH COVERAGE OF OUR FOCUS SECTORS REAL ESTATE HEALTH CARE MEDIA & TELECOM METALS & MINING ENERGY TECHNOLOGY A
Slide 10: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors Fiscal 2014 YTD, % of revenue Fiscal 2011 – Fiscal 2013, % of revenue Financials Media & 5% Telecommuni- - cations Diversified 2% Consumer & 14% Retail 6% Structured Products Metals & CANADA 8% Mining 8% Energy 18%
Slide 11: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors Fiscal 2014 YTD, % of revenue Fiscal 2011 – Fiscal 2013, % of revenue CleanTech & Consumer & Sustainability Retail 10% 1% Energy 13% UNITED STATES Technology 38% Healthcare & Life Sciences 38% Fiscal 2014 YTD, % of
Slide 12: Global wealth management provider
Global wealth management provider Canaccord Genuity Wealth Management has C$29.0 billion1 of assets under management and administration and operates in seven geographies with approximately 300 investment advisors worldwide Clients assets – global (C$ billions)2 Wealth Management Operations in Seven
Slide 13: Different wealth management approaches
Different wealth management approaches Canada UK and Europe • Transactional and wealth management services • Wealth Management oriented business targeted to mass-affluent • 16 branches across Canada (corporate and agent owned) investors • A key distribution channel for capital markets transactions •
Slide 14: Growing fee-based revenue from wealth management
Growing fee-based revenue from wealth management FEE-BASED REVENUE AS A % OF WEALTH MANAGEMENT REVENUE – CANADA Canaccord Genuity fiscal quarters FEE-BASED REVENUE AS A % OF WEALTH MANAGEMENT REVENUE – UK, CHANNEL ISLANDS & EUROPE Canaccord Genuity fiscal quarters 14 To us there are no foreign marke
Slide 15: Experienced leadership team
Experienced leadership team Paul Reynolds Brad Kotush President & CEO of Canaccord EVP, Chief Financial Officer of Genuity Group Inc. Canaccord Genuity Group Inc. Phil Evershed Steve Buell Mark Whaling Global Head of Investment Global Head of Research Global Head of Equity Sales and Banking Trading
Slide 16: Strong, diverse corporate board
Strong, diverse corporate board Nine board members; six independent directors David Kassie Terry Lyons Chairman of the Board Lead Independent Director Co-founder of Genuity Capital Markets; Past Chairman, Northgate Minerals Corp. Former CEO of CIBC World Markets Paul Reynolds Charles Bralver Directo
Slide 17: Financial performance
Financial performance Capital Metrics Cost Containment Quarterly Performance Annual Performance
Slide 18: Solid capital position
Solid capital position Well capitalized for growth opportunities and increased business activity • Dividend rate of $0.05 per share – Reviewed and approved by board each quarter • Well-capitalized for increasing activity levels and capturing growth opportunities • Strong, liquid balance sheet Q2/14
Slide 19: Continued focus on cost containment
Continued focus on cost containment CANACCORD GENUITY EXPENSES (Excluding Significant Items and Incentive Compensation) Canaccord fiscal quarters (C$ millions) Since significantly expanding our global Completed acquisition of CSHP business through the acquisition of CSHP, we have captured cost syner
Slide 20: Q3/14 financial performance
Q3/14 financial performance $230 $218 $231 $187 $187 $183 $21.2 Net Income $178 $20.5 $160 $163 $14.1 $15.6 $148 $11.8 Revenue $10.6 $5.9 $6.7 $120 $2.1 (C$ millions) (C$ millions)* -$1.7 -$16.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2012 FY 2013 FY 2014 FY 2012 FY 2013
Slide 21: Fiscal 2013 financial performance
Fiscal 2013 financial performance $804 $797 $114.1 Net Income $757 $732 93.3 $79.5 $79.3 Revenue $605 (C$ millions)* (C$ millions) $583 $578 $42.0 $25.2 $25.6 $478 ($1.4) 2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013 $1.74 $1.94 Diluted EPS $1.63 $1.40 $0.76 33.6% 2
Slide 22: Appendices
Appendices Canaccord growth story Peak earnings potential Canaccord Genuity – Financial snapshot Wealth Management – Financial snapshot Seven key values Management biographies
Slide 23: Canaccord Genuity’s growth story
Canaccord Genuity’s growth story Our goal is to be the pre-eminent global investment dealer LEADING PLATFORM IN THE UK focused on growth companies • No. 5 for number of retained corporate clients • Named Alexis de Rosnay CEO of our UK and Executing on corporate development objectives Europe operatio
Slide 24: 2007: Peak earnings potential
2007: Peak earnings potential PRO FORMA COMBINED COMPANY PERFORMANCE IN 2007 C$ Millions, pro forma revenue and net income before tax. Approximate – based on CF FY2008, Genuity FY2008, CSHP FY2007 figures*. Canaccord Genuity Capital Markets Collins Stewart Hawkpoint $1,600 $400 $1.45 billion $1,400
Slide 25: Canaccord Genuity – Capital Markets: Financial snapshot
Canaccord Genuity – Capital Markets: Financial snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding significant items - non-IFRS) YTD FY2014 Q2/141 Q3/141 Gross Revenue1 $429.1 mil $126.7 mil $171.2 mil Net Income $56.6 mil $9.0 mil $31.7 mil (before intersegment allocations and in
Slide 26: Canaccord Genuity – Wealth Management: Financial snapshot
Canaccord Genuity – Wealth Management: Financial snapshot CANADA¹ : WEALTH MANAGEMENT 2 Key Metrics (C$, Excluding significant items – non IFRS) YTD FY20142 Q2/14 Q3/142 Gross Revenue $79.0 mil $24.4 mil $27.7 mil Net Income $(2.5) mil $(2.0) mil $(0.3) mil (before intersegment allocations and incom
Slide 27: Seven values drive our business
Seven values drive our business Seven key values drive Canaccord Genuity employees and management in delivering results to our shareholders, clients and community. They support our unwavering commitment to building lasting client relationships, creating shareholder value and generating innovative id
Slide 28: Executive biographies
Executive biographies Paul Reynolds Brad Kotush President & CEO of Canaccord Chief Financial Officer of Genuity Group Inc. Canaccord Genuity Group Inc. Paul Reynolds was named President of Canaccord Genuity Group Brad Kotush is Executive Vice President and Chief Financial Officer of Inc. (formerly C
Slide 29: Executive biographies
Executive biographies Alexis de Rosnay Dan Daviau Chief Executive Officer President Canaccord Genuity Limited Canaccord Genuity Inc. (UK & Europe) (US capital markets operations) Alexis de Rosnay was appointed Chief Executive Officer of Dan Daviau was appointed President of Canaccord Genuity’s Canac
Slide 30: Executive biographies
Executive biographies Matt Gaasenbeek Marcus Freeman President Chief Executive Officer Canaccord Genuity Corp. Canaccord Genuity (Asia-Pacific) (Australia, Hong Kong, mainland (Canadian capital markets) China capital markets) Matthew Gaasenbeek has over 15 years of experience in the Marcus is the Ma
Slide 31: Executive biographies
Executive biographies Alex Tax Steve Buell Chief Executive Officer Global Head of Research Canaccord Genuity (Singapore) (Operations in Singapore) Alex Tan joined Canaccord Genuity through the acquisition of Stephen Buell joined Canaccord Genuity in May of 2010 as Collins Stewart in March of 2012, a
Slide 32: Executive biographies
Executive biographies Phil Evershed Mark Whaling Global Head of Investment Banking Global Head of Equity Sales and Trading Mr. Evershed was a Principal and Head of Investment Banking at Mark Whaling serves as Senior Managing Director, Global Genuity Capital Markets, a Canadian investment bank, from
Slide 33: Executive biographies
Executive biographies Barry Goldberg Scott Davidson Managing Director, EVP, Global Head of Corporate Global Head of M&A and Development & Strategy Restructuring Canaccord Genuity Group Inc. (UK & Europe) Barry is a Managing Director and the Global Head of M&A Scott Davidson is EVP, Global Head of Co
Slide 34: Disclaimer
Disclaimer This presentation does not constitute a prospectus or admission document relating to Canaccord, nor does it constitute or form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securities in Ca
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