Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (November 2019)
27 slides from Canaccord Genuity's investor presentation, November 2019
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation NOVEMBER, 2019
Slide 2: Forward looking statements and non-IFRS measures
Forward looking statements and non-IFRS measures This document may contain ‘‘forward-looking statements’’ (as defined under applicable securities laws). These statements relate to future events or future performance and reflect management’s expectations, beliefs, plans, estimates, intentions and sim
Slide 3: Driven to deliver superior client outcomes
/ Driven to deliver superior client outcomes / Driven to strengthen employee engagement / Driven to become more profitable / Driven to increase shareholder value Page 3
Slide 4: Overview of Canaccord Genuity Group Inc.
Overview of Canaccord Genuity Group Inc. A leading independent financial services firm with a global presence WEALTH MANAGEMENT CAPITAL MARKETS HOW WE Comprehensive wealth management DIFFERENTIATE Provides leading investment banking, solutions to help individual investors, equity research and sales
Slide 5: Positioned for long-term success
Positioned for long-term success Focusing our business for long-term value creation Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth 2010 to 2014 2015 - 2016 2017 - 2018 2019 and beyond • Expand global footprint • Align global business leaders • Significantly grow
Slide 6: Creating shareholder value across our business
/ Creating shareholder value across our business On track for a solid fiscal year Revenue - C$ millions Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 Q2 and six months ended September 30 Q2 and six months ended September 30 $1,191 $107 $1,023 $82 $24 $880 $271 $
Slide 7: Strategic vision
/ Strategic vision Build a dominant independent wealth management and capital markets business • Add scale through acquisitions and recruiting • Drive significant margin improvement and increase profitability • Grow recurring revenues from fee-based services • Increase specialization in existing are
Slide 8: CG Wealth Management - Global
/ CG Wealth Management - Global Fully independent investment planning and wealth management services and solutions UK & Europe: London, Jersey, Overview Guernsey, Isle of Man, Blackpool, Lancaster, Llandudno, Norwich, Nottingham, Southampton, • Increased client assets to over $65 billion from $33 bi
Slide 9: Global Wealth Management: Goals
/ Global Wealth Management: Goals Mission 2022 Q3/19 Q2/20 $60 bn $80 bn Client $65 bn Assets Client Assets End of fiscal quarter • Recruiting • Acquisitions & Tuck-ins $461 M $600 M $478 M Revenue1 Revenue1 Trailing 12 months • Increase fee-based contributions • Grow share of wallet 20% 17% Pre-tax
Slide 10: Wealth Management – UK & Europe
/ Wealth Management – UK & Europe A Top 10 wealth manager in an industry where scale matters Client Assets C$ and GBP£, billions Focused on mass-affluent investors and intermediaries $46.4 $45.2 $45.6 $43.8 $44.9 $44.2 $44.2 Excellent model for the growth and business mix we aim to achieve in ot
Slide 11: Wealth Management: UK & Europe acquisitions track record
/ Wealth Management: UK & Europe Successful track record of integrating new businesses • Announced Q4 F2019; Closed May, 2019 • Wealth management, financial planning and select private client investment management services • Client portfolios valued at approximately £1 billion • January, 2019 • Expa
Slide 12: Wealth Management: Canada
/ Wealth Management: Canada On track to become leading independent Canadian wealth Client Assets management business C$ billions • Focused on mass affluent clients seeking wealth creation and wealth $20.7 $21.2 management $18.9 $19.7 $20.4 $18.3 • Scale, capabilities and economics give us competitiv
Slide 13: Wealth Management: Canada recruiting environment
/ Wealth Management: Canada Recruiting environment increasingly favourable as banks increase limitations on IAs Significant opportunity to grow market share of full- service retail brokerage assets / Canada’s full-service retail brokerage segment represents $1.3 tn1 (C$, billions) in client assets.
Slide 14: Global Capital Markets: Goals
/ Global Capital Markets: Goals Moving toward delivering stability and sustainable profitability through market cycles Income (loss) before income taxes - Adjusted1 C$ millions, fiscal quarters $36.9 $34.8 $36.0 $31.7 $24.9 $20.4 $13.2 $10.7 $8.8 $5.8 ($6.4) ($1.9) Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/1
Slide 15: Canaccord Genuity in Canada
/ Canaccord Genuity in Canada Dominant independent investment bank on every measure Unparalleled origination and placement #1 ranked Canadian equity underwriter1 for calendar 2018 and 2019 YTD capability Fiscal 2019 ranked 1st for number of transactions and 2nd for total proceeds raised Canadian
Slide 16: Canaccord Genuity in the U.S.
/ Canaccord Genuity in the U.S. A significant and growing contributor to our global success U.S. Trading, Advisory, ECM and Corporate Access capabilities are integral to Canaccord Genuity’s global capital markets Strategic combination creates a top-tier platform mid-market M&A franchise • Aligned bu
Slide 17: Canaccord Genuity – Rest of the World
/ Canaccord Genuity – Rest of the World Global capabilities provide a significant competitive advantage in mid-market focus sectors Lean and focused Increasing global Strong emphasis on Focused on increasing platform product placement cross-selling M&A in our key markets Specialization in core Expan
Slide 18: Remain Agile
/ Remain Agile Independence allows us to adjust our business mix and stay competitive as client demands change Capital markets revenue by region Capital markets revenue by activity Q2 2020 Q2 2020 FOCUSED WHERE WE CAN BE MOST RELEVANT TO OUR CLIENTS Canada Commissions AND PROVIDE SUPERIOR REVENUE an
Slide 19: Stability
/ Stability Creating a lower risk business model with growing contributions from wealth management Revenue by business segment EPS contribution by business segment - Adjusted1,2 Q2 2020 Q2 2020 44% 72% / Stable wealth management foundation enhances earnings stability 56% throughout market 28% cycles
Slide 20: An Excellent Investment Proposition
/ (TSX:CF): An Excellent Investment Proposition Committed to driving value for clients, employees and shareholders Shares are attractively valued Driving earnings power by transforming business mix and growing global wealth management Creating a more predictable business with consistency of earnings
Slide 21: Analyst Coverage
/ Analyst Coverage Echelon Wealth Cormark Securities TD Securities Inc. Jeff Fenwick Graham Ryding Partners Rob Goff Canaccord Genuity Group Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Canaccord Genuity's performance made by these an
Slide 22: Financial highlights
Financial highlights Q2 Fiscal 2020 Page 22
Slide 23: Fiscal second quarter 2020 results
/ Fiscal second quarter 2020 results Improved business mix contributing to earnings stability and growth • Fiscal year-to-date revenue of $596.2 million, increased 3.8% • Second quarter dividend of $0.05 per common share year-over-year • Excluding significant items, pre-tax net income contribution •
Slide 24: Global Capital Markets
/ Global Capital Markets Revenue by Activity Pre-tax net income1 and profit margin1 C$ millions, fiscal quarters $40 25% 20% $200 $30 15% Pre-tax profit margin Pre-tax net income $150 $20 10% C$ millions $100 $10 5% 0% $50 $0 -5% $0 -$10 -10% Commissions & Fees Investment Banking Advisory Trading In
Slide 25: Global Wealth Management
/ Global Wealth Management Revenue by region Pre-tax net income1 and profit margin1 C$ millions $25 20% $120 18% $20 16% Pre-tax profit margin 14% Pre-tax net income $80 $15 12% C$ millions 10% $10 8% $40 6% $5 4% 2% $0 0% $0 UK & Europe Canada Pre-tax net income Pre-tax profit margin Sequential Q2/
Slide 26: Expenses
/ Expenses Disciplined expense management as business activity increases Compensation ratio1 Non-compensation ratio1 64.4% 64.2% 34.7% 34.2% 61.5% 61.5% 59.9% 33.0% 58.3% 59.8% 58.7% 60.7% 59.7% 59.1% 58.3% 30.7% 31.2% 28.6% 28.3% 27.1% 27.6% 27.1% 25.1% 23.9% Q/Q Y/Y Q2 2019 Q3 2019 Q4 2019 Q1 2020
Slide 27: 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 substantial issu
Canaccord Genuity Group — Investor Presentation (November 2019) on 6ix