Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q3 2017 Earnings Presentation
24 slides from Canaccord Genuity's earnings presentation, February 2017
Slide 1: Fiscal Third Quarter 2017 Investor Presentation
Fiscal Third Quarter 2017 INVESTOR PRESENTATION | February 2017 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: Our Vision for Canaccord Genuity Remains Consistent
Our Vision for Canaccord Genuity Remains Consistent Focused, Independent Mid-market Investment Bank With a Stable Wealth Management Business MID-MARKET COMPETITOR LEAN STABLE AND AGILE Shareholder Value NEW Creation LOCAL & GLOBAL CULTURE PLATFORM SHAREHOLDER ALIGNMENT To us there are no foreign mar
Slide 4: Fiscal Third Quarter 2017 Highlights
Fiscal Third Quarter 2017 Highlights Delivering on our commitments Create Expense Drive Stability Management Performance Diversify Revenue Streams Fiscal 2017 YTD Increase Net Income Q3 principal trading revenues increased 66.2% y/y Operating Expenses1 Focus in All Business Increasing scale and
Slide 5: Enhance Operating Efficiency
Enhance Operating Efficiency Strong focus on cost containment On Track To Permanently Reduce Certain Operating Costs Year-to-date total operating expenses1 reduced by Reducing Toronto office space footprint will deliver 6.7% year-over-year to $265 million annual savings of $1 million after fisca
Slide 6: Drive Business Unit Performance in Canada
Drive Business Unit Performance in Canada Continue to establish Canaccord Genuity as the dominant independent Canadian investment bank Top Canadian underwriter by number of transactions over last 5 fiscal years1 Leading independent investment dealer for IPOs over past 5 fiscal years Investment
Slide 7: Drive Business Unit Performance in the US
Drive Business Unit Performance in the US Strategically strengthening our US operations to enhance our global platform Strengthened core teams and sector coverage to align with global efforts Benefiting from investments made last year in Industrials, HCIT, and REITs, teams delivering consistent
Slide 8: Drive Business Unit Performance in the UK, Europe & Dubai
Drive Business Unit Performance in the UK, Europe & Dubai A leaner, more focused mid-market securities and investment banking business Activity levels improving as businesses begin to move forward in light of Brexit- related developments Growth in retained corporate client base with a number of
Slide 9: Drive Business Unit Performance in Australia
Drive Business Unit Performance in Australia Strong mid-market competitor in the region Diversified business covering core sectors YTD Investment banking revenue increased 125% y/y Investment Metals & Mining capability delivering results in resource sector turnaround Beijing Banking Strength
Slide 10: $60 Million Investment to Fund Growth in Canadian Wealth Management
$60 Million Investment to Fund Growth in Canadian Wealth Management Well positioned to become leading independent in Canada The Offering Strategic Rationale $60 million private placement of convertible Unique and immediate opportunity to increase assets under management unsecured debentures of Canac
Slide 11: Drive Business Unit Performance in Canadian Wealth Management
Drive Business Unit Performance in Canadian Wealth Management Opportunistic approach to emerging industry opportunities Client Assets – (C$ billions) Fee-based Revenue as a Percentage of Wealth Management Revenue Canada - Canaccord Genuity fiscal quarters Assets under admin Assets under management (
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 $24.5 $22.8 $22.9 $22.8 $23.2 $23.4 $2
Slide 13: Stability
Stability Significantly reduce volatility in our earnings model Focused Diversification Strategy Fiscal Third Quarter 2017 Capital Markets Revenue Breakdown C$ Millions Global platform provides opportunities to benefit from activity in all our geographies Sales & Trading desks coordinated across
Slide 14: Stability
Stability Global alignment across core focus sectors is a key differentiator Q3/17 Fiscal 2016 % of Investment Banking Revenue % of Investment Banking Revenue Metals & Metals & 17% 5% Mining Mining Energy 9% Energy 4% Technology 18% Technology 26% Real Real 9% 13% Estate Estate Sustainability 2% Sus
Slide 15: 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 16: 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 17: 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 18: 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 Closed $60 million privat
Slide 19: Canaccord Genuity Group Inc.: Financial Snapshot
Canaccord Genuity Group Inc.: Financial Snapshot CANACCORD GENUITY GROUP INC.: GLOBAL MEASURES Key Metrics F2014 F2015 F2016 Q3/16 Q3/17 Gross Revenue $855,244 $880,763 $787,805 $181,837 $208,108 Total Expenses1 $770,587 $827,458 $793,8621 $204,2491 $200,2941 Incentive Compensation $413,289 $455,480
Slide 20: Canaccord Genuity Global Capital Markets: Financial Snapshot
Canaccord Genuity Global Capital Markets: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding FY2016 Q3/161 Q2/171 Q3/171 Significant Items - Non-IFRS) Gross Revenue1,2 $525.4 mil $120.9 $127.0 mil $137.3 mil Income (Loss) (before intersegment allocations and $6.9 mil ($
Slide 21: Canaccord Genuity Wealth Management: Financial Snapshot
Canaccord Genuity Wealth Management: Financial Snapshot Canada¹: Wealth Management Key Metrics FY2016 Q3/16 Q2/17 Q3/17 (C$, Excluding Significant Items)2 Gross Revenue $108.2M $25.6M $29.7 $32.8 Income (Loss) (before intersegment allocations and income $12.2M $2.2M $4.5M $3.9M taxes) Income (Loss)
Slide 22: Q3/17 Financial Performance
Q3/17 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $254 $29.1 $230 $246 $236 $231 $232 $24.0 $218 $208 $20.5 $21.2 $20.7 $214 $206 $187 $187 $191 $201 $194 $15.6 $183 $166 $182 $11.8 $13.3 $163 $8.8 $8.1 $6.3 $5.9 $6.7 $1.9 $2.0 ($2.1) ($16.3) ($14.3) ($19.1) Diluted EPS1 Bo
Slide 23: Fiscal 2016 Financial Performance
Fiscal 2016 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $880.8 $114.1 $803.6 $797.1 $855.2 $756.9 $787.8 $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 24: 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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