Slide 1: Canaccord Financial Inc. Investor Presentation – Fiscal Q3/13
CANACCORD FINANCIAL INC. Creating a leading independent global investment bank March 2013 INVESTOR PRESENTATION – Fiscal Q3/13
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: A Leading Global Investment Dealer
Canaccord: A Leading Global Investment Dealer Operations in 13 countries GLOBAL OPERATIONS Smaller offices not shown on map. Capabilities to list companies on 10 stock exchanges Corporate finance, M&A, advisory and restructuring capabilities in nine countries Calgary Dublin Edinburgh London Montreal
Slide 4: Experienced, World-Class Regional Leadership
Experienced, World-Class Regional Leadership Paul Reynolds Brad Kotush President & CEO of Canaccord EVP, Chief Financial Officer Financial Inc. Phil Evershed Steve Buell Global Head of Investment Global Head of Research Banking Dan Daviau Matt Gaasenbeek Alexis de Rosnay President of US operations P
Slide 5: 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 6: Two Main Operating Divisions
Two Main Operating Divisions Capital Markets Wealth Management Investment Banking (Corporate Finance, M&A and advisory) Investment Advice and Brokerage services • 270+ Investment Bankers in ten countries • Over 300 Investment Professionals globally • CY2012: Led or co-led over 115 transactions globa
Slide 7: Different Wealth Management Approaches
Different Wealth Management Approaches Canada UK and Europe • Transactional and wealth management services • Wealth Management oriented business targeted to mass- • 16 branches across Canada (corporate and agent owned) affluent investors • A key distribution channel for capital markets transactions
Slide 8: Canaccord Genuity: Leading Capital Markets Expertise
Canaccord Genuity: Leading Capital Markets Expertise Leading corporate finance/corporate broking practice Highly-respected Advisory franchise Globally, Canaccord Genuity and CSHP led or co-led over 115 Combined, Canaccord Genuity and Collins Stewart Hawkpoint transactions during CY2012, raising appr
Slide 9: Representing Deep Value in Today’s Market
Representing Deep Value in Today’s Market • Driving revenue growth through cross-border collaboration − Half of company revenue now generated in markets outside of Canada • Continued focus on cost reduction – Strong progress in reducing costs of combined Canaccord/Collins Stewart platform by $48 mil
Slide 10: Financial Performance
FINANCIAL PERFORMANCE Capital Metrics Quarterly Performance Annual Performance
Slide 11: Solid Capital Position
Solid Capital Position Well capitalized for growth opportunities and increased business activity • Dividend of $0.05 – Reviewed and approved by board each quarter – Anticipate distributing additional special dividends of up to 50% of net profits, subject to Board approval – Believe this dividend pol
Slide 12: Q3/13 Financial Performance
Q3/13 Financial Performance $230 Net Income $178 $187 $20.5 $160 $163 $14.1 $148 $10.6 Revenue $5.9 (C$ millions)* $120 $2.1 (C$ millions) -$1.7 -$16.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2012 FY 2013 FY 2012 FY 2013 $8.71 $8.75 $8.54 Diluted EPS Book Value $8.26 per diluted Share $0.17 $0.
Slide 13: Fiscal 2012 Financial Performance
Fiscal 2012 Financial Performance (includes CSHP contribution from March 22, 2012) $804 $114 $757 $732 $93 Net Income $81 $79 Revenue $605 $583 (C$ millions)* $578 (C$ millions) $42 $25 $478 ($1) 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 $1.74 $1.94 Diluted EPS $1.63 $1.4
Slide 14: Appendices
APPENDICES Diversified Sector Coverage Canaccord Growth Story Canaccord Wealth Management (Canada) Growing Fee-based Revenue Peak Earnings Potential Canaccord Genuity – Financial Snapshot Wealth Management – Financial Snapshot Seven key values Management Biographies
Slide 15: Diversified Sector Coverage
Diversified Sector Coverage Deep industry expertise of 18 key sectors CANACCORD GENUITY: TRANSACTIONS BY SECTOR Fiscal 2012, % of transactions • Over 85 research analysts provide high-quality, in-depth research on over 1000 companies • Research distributed globally: North America, South America, the
Slide 16: Canaccord’s Growth Story
Canaccord’s Growth Story Our goal is to be the pre-eminent global investment dealer LEADING PLATFORM IN THE UK focused on growth companies • No. 2 for number of retained corporate clients • Recently named Alexis de Rosnay CEO of our Executing on corporate development objectives UK and Europe operati
Slide 17: Canada: Refocusing Wealth Management Strategy in Core Markets
Canada: Refocusing Wealth Management Strategy in Core Markets Branch consolidation to enhance performance of RETAINING MAJORITY OF CLIENT ASSETS Assets under Administration (CWM Canada) as at June 30, 2012 Canadian wealth management business • In the process of closing 16 underperforming branches –
Slide 18: Growing Fee-based Revenue from Wealth Management
Growing Fee-based Revenue from Wealth Management FEE-BASED REVENUE AS A % OF WEALTH MANAGEMENT REVENUE – UK & EUROPE Canaccord fiscal quarters 70.0% 62.0% 62.3% 61.9% 62.8% 65.0% 60.0% 55.6% 54.5% 55.5% 55.0% 51.6% 52.4% 49.5% 49.1% 50.0% 45.0% 40.0% 35.0% 30.0% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q
Slide 19: 2007: Peak Earnings Potential
2007: Peak Earnings Potential PRO FORMA COMBINED COMPANY PERFORMANCE IN 2007 C$ 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 $1,400
Slide 20: Canaccord Genuity: Financial Snapshot
Canaccord Genuity: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding FY 20121 Q2/13 Q3/13 significant items - non-IFRS) Gross Revenue $373.5 mil $119.0 mil $165.5 mil Net Income¹ $43.4 mil $1.9 mil $30.2 mil (before intersegment allocations and income taxes) Net Income
Slide 21: Wealth Management: Financial Snapshot
Wealth Management: Financial Snapshot CANADA¹ & AUSTRALIA: CANACCORD WEALTH MANAGEMENT Key Metrics (C$, Excluding significant items – non IFRS) FY2012 Q2/13 Q3/13 Gross Revenue $199.3 mil $37.0 mil $35.2 mil Net Income $39.5 mil $2.3 mil $2.9 mil (before intersegment allocations and income taxes) Ne
Slide 22: Seven Values Drive our Business
Seven Values Drive our Business Seven key values drive Canaccord 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 ideas. 1.
Slide 23: Executive Biographies
Executive Biographies Paul Reynolds Brad Kotush President & CEO of Canaccord Chief Financial Officer of Financial Inc. Canaccord Financial Inc. Paul Reynolds was named President of Canaccord Financial Inc. in Brad Kotush is Executive Vice President and Chief Financial Officer of August 2006, and CEO
Slide 24: Strong Regional Leadership – Recent Appointments
Strong Regional Leadership – Recent Appointments Alexis de Rosnay Dan Daviau Chief Executive Officer President Canaccord Genuity Limited Canaccord Genuity Inc. Canaccord Genuity Securities LLC (UK & Europe) (US capital markets operations) Alexis de Rosnay was appointed Chief Executive Officer of Dan
Slide 25: 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