Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q4 2016 Earnings Presentation
23 slides from Canaccord Genuity's earnings presentation, June 2016
Slide 1: Fourth quarter and fiscal 2016
Fourth quarter and fiscal 2016 INVESTOR PRESENTATION | June 2016 To us there are no foreign markets.™ To us there are no foreign markets.™
Slide 2: Caution Regarding Forward Looking Statements
Caution Regarding Forward Looking Statements This document may contain certain “forward-looking information” (as defined under applicable securities laws). These statements relate to future events or future performance and include management’s expectations, beliefs, plans, estimates, intentions, and
Slide 3: Vision for Canaccord Genuity
Vision for Canaccord Genuity Focused, Independent Mid-market Investment Bank With a Stable Wealth Management Business MID-MARKET COMPETITOR LEAN AND AGILE STABLE Shareholder Value Creation NEW CULTURE LOCAL & GLOBAL PLATFORM SHAREHOLDER ALIGNMENT To us there are no foreign markets.™ Page 3
Slide 4: Commitment to Stronger Bottom Line Performance
Commitment to Stronger Bottom Line Performance Key priorities to create long term shareholder value 1 Enhance Operating Efficiency 2 Improve Alignment 3 Drive Individual Business Unit Performance 4 Create Stability 5 Establish New Culture 6 Net Income Focus To us there are no foreign markets.™ Page
Slide 5: Fourth quarter and fiscal 2016 highlights
Fourth quarter and fiscal 2016 highlights Delivering on our commitments Expense Shareholder Drive Alignment Management Focus performance Q4 sequential expense Increase equity Align core offerings Increase net income reduction of $8 million1 ownership and align across global focus in all business O
Slide 6: Enhance Operating Efficiency
Enhance Operating Efficiency How we are reducing certain operating costs Q3/16 Q4/16 Fiscal 2017 $4 million in restructuring costs $13 million in restructuring costs $10 million savings in G&A, communications & technology, and trading Headcount reductions of 29 Net headcount reduction of 6
Slide 7: Drive Business Unit Performance in Canada
Drive Business Unit Performance in Canada Clearly establish Canaccord Genuity as the dominant independent Canadian investment bank Successfully recruited into our strategic sectors Realigned our natural resource focus and leadership (Energy and Mining) Realigned leadership and sector head stru
Slide 8: Drive Business Unit Performance in the US
Drive Business Unit Performance in the US Strategically strengthening our US operations to enhance our global platform Strengthening core teams and sector coverage in alignment with global efforts Benefiting from investments made last year in HCIT, REITs and industrials Investment Debt, Restru
Slide 9: Drive Business Unit Performance in the UK & Europe
Drive Business Unit Performance in the UK & Europe A leaner, more focused mid-market securities and investment banking business Better integrated into global platform, strong M&A capability across continental Europe Mid-market strengths in alignment with global efforts Dublin Investment Privat
Slide 10: Drive Business Unit Performance in Asia-Pacific
Drive Business Unit Performance in Asia-Pacific Continue to invest in strengthening Australian operations Diversified business covering core sectors– 85% of revenue from non-resource sectors over the last 12 months but is well positioned for a resource sector Investment turnaround Beijing Consiste
Slide 11: Drive Business Unit Performance in Canadian Wealth Management
Drive Business Unit Performance in Canadian Wealth Management Determined resolve and aggressive response to challenging markets and industry upheaval Client Assets – (C$ billions) Fee-based Revenue as a Percentage of Wealth Management Revenue Canada - Canaccord Genuity fiscal quarters $11.4 46.6% $1
Slide 12: Continue to Drive Results in UK & Europe Wealth Management
Continue to Drive Results in UK & Europe Wealth Management Important asset with significant value creation opportunities Client Assets – (C$ billions)1 Fee-based Revenue as a Percentage of Wealth Management Revenue UK & Europe- Canaccord Genuity fiscal quarters 68.5% 64.6% 70.0% 70.8% 68.7% 71.0% $2
Slide 13: Stability
Stability Significantly reduce volatility in our earnings model Fiscal 2016 Capital Markets Revenue Breakdown Focused diversification strategy C$ Million Global platform provides opportunities to benefit from $532.3 activity in all our geographies ASIA-PACIFIC & OTHER $38.0 Sales & Trading desks
Slide 14: Alignment with Shareholders
Alignment with Shareholders Equity participation by Executives, Employees and Board of Directors Compensation linked to successful delivery of strategic objectives • President & CEO compensated primarily in Common shares • Surrendered full amount of F2016 stock award in connection with CEO appointme
Slide 15: A Strong Culture to Drive our Success
A Strong Culture to Drive our Success We must perform to our full potential in any market How we interact with each other is critical to our culture. As a global investment Connect People to Performance bank, we differentiate ourselves every day by providing a truly global perspective, 1 We are whic
Slide 16: Financial performance
Financial performance Capital Metrics, Quarterly Performance, Annual Performance Canaccord Genuity – Financial snapshot Wealth Management – Financial snapshot To us there are no foreign markets.™
Slide 17: Canaccord Genuity Group Inc.: Financial Snapshot
Canaccord Genuity Group Inc.: Financial Snapshot CANACCORD GENUITY GROUP INC.: GLOBAL MEASURES Key Metrics Q4/16 F2016 F2015 F2014 Gross Revenue $200,912 $787,805 $880,763 $855,244 Total expenses1 $204,2572 $793,8622 $827,458 $770,587 Incentive Compensation $112,921 $417,876 $455,480 $413,289 Operat
Slide 18: Canaccord Genuity Global Capital Markets: Financial Snapshot
Canaccord Genuity Global Capital Markets: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding significant items - non-IFRS) FY2016 Q3/161 Q4/161 Gross Revenue1 $532.3 mil $122.1 mil $138.6 mil Income (loss) $6.9 mil ($14.7) mil $3.2 mil (before intersegment allocations a
Slide 19: Canaccord Genuity Wealth Management: Financial Snapshot
Canaccord Genuity Wealth Management: Financial Snapshot Canada¹: Wealth Management Key Metrics (C$, Excluding significant items – non IFRS) FY2016 Q3/16 Q4/16 Gross Revenue $108.2 mil $25.6 mil $25.5 mil Income (loss) $12.2 mil $2.2 mil $2.3 mil (before intersegment allocations and income taxes) Inc
Slide 20: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in key priorities Able to support increasing business activities and invest in opportunities to capture additional market share Strong, liquid balance sheet Prepared for evolving regulatory environment (in C$ millions, except for
Slide 21: Q4/16 Financial Performance
Q4/16 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $254 $29.10 $246 $236 $232 $230 $231 $214 $20.50 $24.00 $218 $21.20 $20.70 $201 $15.60 $187 $187 $191 $178 $183 $166 $11.80 $13.30 $163 $182 $148 $5.90 $6.70 $8.80 $1.90 ($2.10) ($16.30) ($14.30) ($19.10) Diluted EPS1 Book V
Slide 22: Fiscal 2016 Financial Performance
Fiscal 2016 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $880.8 $114.1 $803.6 $797.1 $855.2 $787.8 $756.9 $731.5 $93.0 $604.9 $81.2 $79.3 $577.5 $68.8 $477.7 $42.0 $39.3 $25.6 $25.2 ($1.4) ($6.0) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY06 FY07 FY08 FY09 FY10 FY11
Slide 23: Disclaimer
Disclaimer This material is provided for information purposes only and is intended for distribution in those jurisdictions where subsidiaries of Canaccord Genuity Group Inc. (together, “Canaccord Genuity”) are registered as advisors or dealers in securities. Any distribution or dissemination of this
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