Guardian Directed Equity Path Portfolio (GGEP.F) · TSX:GGEP.F
Guardian Directed Equity Path Portfolio (GGEP.F) — Guardian Capital Group — Shareholder Meeting (May 2015)
31 slides from Guardian Directed Equity Path Portfolio (GGEP.F)'s shareholder meeting presentation, May 21, 2015
Slide 1: Annual Meeting of Shareholders
Guardian Capital Group Limited Annual Meeting of Shareholders May 21, 2015 James S. Anas George Mavroudis Chairman of the Board President and Chief Executive Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking statements” with respect to Guardian Capital Group Limited and its products and services, including its business operations and strategy and financial performance and condition. These statements, characterized by such words as
Slide 3: Agenda
Agenda • Overview of Guardian’s businesses • 2014 Highlights • Investment Management • Financial Advisory • Questions 3
Slide 4: Guardian's Businesses
Guardian’s Businesses Investment Management Financial Advisory AUM of $26.1 billion* AUA of $14.1 billion* Corporate Activities and Investments Management expertise, financing, coordination of business activities and support Shareholders’ equity: $478 million* Securities holdings: $522 million * TSX
Slide 5: Guardian's Fee Generating Assets
Guardian’s Fee Generating Assets Investment Management Financial Advisory Assets Under Management Assets Under Administration As at period end ($ billions) As at period end ($ billions) $26.1 $14.1 $25.0 $13.1 $22.2 $11.6 $18.8 $9.9 $16.3 $15.9 $8.7 $7.8 2010 2011 2012 2013 2014 Q1 2010 2011 2012 20
Slide 6: 2014 Highlights
2014 Highlights • Historic highs in all key financial measures AUM $25 billion, 12% growth AUA $13 billion, 14% growth and Annual Premiums Sold were $45 million, a 17% increase from the prior year Shareholders’ equity, per share $15.62, 19% growth Corporate holdings of securities, per share
Slide 7: 2014 Financial Highlights
2014 Financial Highlights ($ millions, except per share amounts) 2014 2013 % increase Net revenues $119.3 $101.3 18% Operating earnings $38.1 $26.9 42% EBITDA $42.9 $32.3 33% Net earnings, available to shareholders $37.0 $34.4 8% AUM $24,968 $22,228 12% AUA $13,126 $11,559 14% Shareholders’ equity,
Slide 8: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights ($ millions, except per share amounts) Q1 2015 Q1 2014 % increase Net revenues $32.3 $27.7 17% Operating earnings $10.5 $8.6 22% EBITDA $11.6 $9.8 18% Net earnings, available to shareholders $11.3 $10.9 4% AUM $26,093 $23,237 12% AUA $14,057 $12,227 15% Shareholders’ equ
Slide 9: Net Revenue
Net Revenue For the years ended December 31 ($ millions) • 2014 net revenue of $119 million, 18% increase over prior $119.3 year $101.3 $61 million in net management fees, 20% higher on higher AUM and $86.4 improved margins $73.7 $28 million in net commission $64.9 revenue, 21% higher due to com
Slide 10: Operating Earnings
Operating Earnings For the years ended December 31 ($ millions) • Operating earnings increase $38.1 $11.2 million, or 42%, over the prior year Positive contributions to growth in $26.9 operating earnings from all business segments $20.1 $17.1 • Q1 2015 operating earnings of $13.5 $10.5 million, 22
Slide 11: Operating Earnings by Segment
Operating Earnings by Segment $30.0 Past Five Years’ Operating Earnings by Segment $25.0 ($ millions) $25.9 $20.0 $15.0 $15.3 $9.8 $10.1 $10.6 $10.0 $11.6 $12.2 $9.5 $5.0 $7.0 $3.7 $- 2010 2011 2012 2013 2014 Corporate Activities and Investments Operating Segments • Growth in our Operating Segments,
Slide 12: Dividends per share
Dividends per share Per share For the years ended ($’s) • Total of $0.24 per share paid in 2014 $0.075 Quarterly dividend rate $0.065 increased to $0.065 per share from $0.055 per $0.050 share, an 18% increase $0.040 $0.043 $0.038 during 2014 • Dividend rate increased 15% CAGR since 2010 2010 2011
Slide 13: Share Buybacks
Share Buybacks For the years ended December 31 ($ millions) • 10% of outstanding shares $12.4 repurchased in the past 5 years $36.5 million in cash returned to shareholders 3.6 million shares repurchased $7.8 $7.9 Average purchase price of $10.22 per share $5.7 • In 2014, $12.9 million was ret
Slide 14: Shareholders' Equity
Shareholders’ Equity Shareholders’ equity per share, diluted As at period end ($’s) • 11.8% CAGR in shareholders’ $15.62 equity per share since 2010 $13.17 • 18.6% increase in $11.16 Shareholders’ equity per $10.01 $9.90 share during 2014 2010 2011 2012 2013 2014 14
Slide 15: Investment Portfolio
Investment Portfolio Securities per share, diluted As at March 31, 2015($’s) • Provides a stable stream of $522 million or $16.86 per share investment income $0.94 • As at March 31: $0.21 $1.01 we have invested $22 million of a $25 million commitment into $3.11 the real estate fund $11.59 Invest
Slide 16: Investment Management
Investment Management $26.1 billion in AUM* Competitive investment products Executing on opportunities Growth across all distribution channels Institutional Investment Private Wealth Management Management $2.3 billion in AUM* $23.8 billion in AUM* 16 * As at March 31, 2015
Slide 17: Investment Solutions
Investment Solutions Canadian Equities Foreign Equities Fixed Income $13.7 billion* $3.0 billion* $7.2 billion* Core Large Cap Core Global Dividend Liability Driven Growth Global Growth Short Duration Equity Income Concentrated Global and Emerging High Yield Small/Mid Cap Marke
Slide 18: Distribution Channels and Target Clients
Distribution Channels and Target Clients Institutional Private Wealth Retail Intermediary $11.8 billion* $2.3 billion* Sub-advisory Wrap Defined Benefit $6.0 billion* $6.0 billion* Direct client Pension Plans relationships Defined Contribution Bank-owned Segregated Funds Independent Advisors Pension
Slide 19: Institutional Clients
Institutional Clients Assets Under Management As at period end ($ billions) • AUM increased 12% in 2014 $11.3 $11.8 • Future growth opportunities $10.3 remain strong $8.9 Continued success in developing leads $8.5 through key consultants $7.3 High conviction global and emerging markets equity st
Slide 20: Retail Intermediary Clients
Retail Intermediary Clients Broker-Dealer Wrap Programs Assets Under Management As at period end ($ billions) • AUM increased 14% in 2014 +340% growth since 2010 $6.0 • A leading money manager in the $5.2 Separately Managed Wraps $4.5 Significant representation, $5.3 billion, on the 5 major bank
Slide 21: Retail Intermediary Clients
Retail Intermediary Clients Sub-Advised Mutual Funds Assets Under Management • AUM increased 12% in 2014 As at period end ($ billions) $6.2 29% growth since 2010 $6.0 $5.6 • Expanding our client base $4.9 $5.0 $5.0 9 relationships in 2014 compared to only 3 in 2008 • Continued diversification of
Slide 22: Private Wealth Management Clients
Private Wealth Management Clients Assets Under Management As at period end ($ billions) • AUM increased 17% in 2014 $2.3 $2.1 58% growth since 2010 $1.8 • Experienced client-focused investment professionals $1.5 $1.4 $1.4 offering bespoke services in the major Canadian markets of Toronto, Vancouve
Slide 23: Financial Advisory
Financial Advisory $14.1 billion in AUA* National distribution platform The leading platform for Canada’s independent investment advisors Life Insurance MGA Mutual Fund and Securities Dealers $3.2 billion in AUA* $10.8 billion in AUA* 23 * As at March 31, 2015
Slide 24: Financial Advisory - Operating Earnings
Financial Advisory - Operating Earnings Financial Advisory Operating Earnings ($ millions) $8.0 $6.4 $6.0 $4.0 $2.2 $2.0 $- $(0.5) $(2.0) $(2.8) $(2.7) $(4.0) 2010 2011 2012 2013 2014 • Significant growth in operating earnings through acquisition, organic growth and cost management 24
Slide 25: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers • Worldsource is a national financial advisory services business for independent investment advisors. Worldsource is also the dealer for several credit unions. MFDA and IIROC advisors Availability of best in class products for their clients • Access to the vari
Slide 26: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers Assets Under Administration As at period end ($ billions) • AUA grew by 14% across our $10.8 platforms in 2014 $10.1 The pipeline for recruiting new $9.1 advisors remains strong $7.7 • $18.3 million in net revenues in $7.0 $6.7 2014, a 12% increase over 2013 • A
Slide 27: Life Insurance Managing General Agency
Life Insurance Managing General Agency • IDC Worldsource Insurance Network is one of Canada’s leading MGAs Life insurance Disability and critical illness insurance Segregated funds, term deposits and annuities Group life and health Group RSP • Significant presence in the key Canadian high
Slide 28: Life Insurance Managing General Agency
Life Insurance Managing General Agency Premiums on Life Insurance Policies Sold Assets Under Administration For the years ended December 31 ($ millions) As at period end ($ billions) $45.0 $3.22 $3.00 $38.5 $36.3 $2.46 $2.23 $1.63 $20.0 $0.72 $6.2 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Q1
Slide 29: Life Insurance Managing General Agency
Life Insurance Managing General Agency Net Insurance Commission Revenue • New sales generate: For the years ended December 31 ($ millions) First year commissions in the $16.8 current year Continuing service fees in the $13.4 following years, which have a high persistency $10.4 • MGA generated ne
Slide 30: Summary
Summary • All key financial operating metrics set historical highs in 2014: AUM & AUA Premiums on Life Insurance Policies Sold Net revenue Operating earnings EBITDA Shareholders’ equity • Continued growth in Q1 2015 • Solid investment performance • Improving sustainable growth in operating ear
Slide 31: Questions?
Se GUARDIAN CAPITAL Our history. Your future. Questions?
Guardian Capital Group — Shareholder Meeting (May 2015) on 6ix