Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (August 2021)
34 slides from Canaccord Genuity's investor presentation, August 2021
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation AUGUST 2021
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 grow our profitability Driven to increase shareholder value Page 3
Slide 4: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $524 M $95 bn Q1 REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment banking, $20 bn 199 helping individual investors, private clients
Slide 5: Financial Highlights
Financial Highlights Broad capabilities drive revenue and earnings stability through market cycles Client Pre-tax Net Diluted Revenue1 Assets Income1,2 EPS1 Q1 Fiscal 2022 $523.8 M $94.9 bn $114.0 M $0.73 3 months ended +39% y/y +38% y/y +173% y/y +192% y/y June 30 Fiscal 2021 was an exceptionally s
Slide 6: Continued strong results on all key measures
Continued strong results on all key measures Strong contributions from all businesses and geographies Revenue1 - C$ millions Pre-tax Net Income2,3 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 Q1/21 and Q1/22 ended June 301 Q1/21 and Q1/22 ended June 30 Expanding into our cor
Slide 7: Positioned for long-term success
Positioned for long-term success Building upon our strategy of long-term value creation Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 - 2018 Fiscal 2019 to 2021 Fiscal 2022 and bey
Slide 8: Transformed our business mix to provide stability through market cycles
Transformed our business mix to provide stability through market cycles Broad-based revenue and net income contributions without concentration in any sector or region Q1/22 Firmwide Revenue by Division Firmwide revenue1 C$ millions, fiscal years ended March 31 Q1/21 and Q1/22 ended June 30 62% $1,99
Slide 9: We have steadily and sustainably improved earnings stability
We have steadily and sustainably improved earnings stability A lower risk business model with growing contributions from wealth management Pre-tax net income and profit margins1,2 Diluted EPS1 % and C$ millions, fiscal years ended March 31 C$ fiscal years ended March 31 Q1/21 and Q1/22 ended June 30
Slide 10: Disciplined expense management
Disciplined expense management Improving operating leverage to enhance profitability Non-compensation expenses as a % of revenue1 Pre-tax profit margin1 Fiscal years ended March 31 Fiscal years ended March 31 Q1/21 and Q1/22 ended June 30 Q1/21 and Q1/22 ended June 30 21.8% 19.4% 29.6% 28.0% 28.4% 2
Slide 11: Improving shareholder returns
Improving shareholder returns Deploying capital in ways that increase the long-term value of our business, and optimize value for shareholders Common Share Dividends Common shares outstanding (Average diluted) C$, Fiscal years ended March 31 Fiscal years ended March 31 Q1/22 quarterly common share
Slide 12: Initiatives underpinning future growth
Initiatives underpinning future growth Talent Development Leveraging Technology Managing Risk • Drive demand for leadership and client- focused • Stay ahead of evolving market and changing client • Successfully increasing the value of our franchise talent demands means that we have more to protect R
Slide 13: Global Wealth Management
Global Wealth Management A growing contributor to firmwide earnings growth and stability Q1/22 CLIENT ASSETS Q1/22 REVENUE Q1/22 PRE-TAX NET INCOME2 Q1/22 PRE-TAX PROFIT MARGIN2 $94.9 bn $195 M $48 M 25% + 38% y/y + 41% y/y + 98% y/y + 7.1 p.p y/y Total Client Assets Total Wealth Management Revenue1
Slide 14: CG Wealth Management: Fundamental to our long-term strategy
CG Wealth Management: Fundamental to our long-term strategy Accelerating growth in key regions through Recruiting, Acquisitions and Partnerships TRANSFORMATIONAL A business model centred £3.8 bn in client assets, 14,000+ private clients, £170 m in client TRANSFORMATIONAL on stability assets. interme
Slide 15: CG Wealth Management: Modern, scalable technology and infrastructure
CG Wealth Management: Modern, scalable technology and infrastructure Positioned for further acquisitions, consolidation and organic growth Core platform provider (UK & Crown State-of-the-Art Unified Managed Account Proprietary Paperless Document Dependencies) (UMA) Platform (Canada) Management Porta
Slide 16: CG Wealth Management: UK & Crown Dependencies
CG Wealth Management: UK & Crown Dependencies A top-10 wealth manager in an industry where scale matters Achievements Strategic Priorities AUA increased 28% y/y to C$56bn • Drive organic growth and margin expansion Q1/22 pre-tax profit margin1 increased 2.9 p.p. y/y to 26.5% • Cross fertilizatio
Slide 17: CG Wealth Management: Canada
CG Wealth Management: Canada Building on our success as the most profitable independent wealth manager in the country Achievements Strategic Priorities AUA increased 56% y/y to $35 billion • Continue to advance recruiting , client experience and organic growth initiatives Average AUA per IA team
Slide 18: Wealth Management: Canada
Wealth Management: Canada Platform designed to support faster and more sustainable growth for Investment Advisors Average client assets per IA Team Illustrative revenue distribution of new client assets Fiscal years ended March 31 Q1/22 ended June 30 Net 5-year CAGR 18.8% contribution 30% $16.5 bn i
Slide 19: CG Wealth Management: Australia
CG Wealth Management: Australia Expanding CG’s national footprint in Australia Achievements Strategic Priorities Total client assets in comprehensive investment management platform increased • Continue to build on the CGWM brand 53% y/y to C$4.7bn • Increase scale through targeted recruiting oppor
Slide 20: CG Global Capital Markets: A powerful mid-market competitor
CG Global Capital Markets: A powerful mid-market competitor Diverse revenue streams provide stability and profitability through market cycles Q1/22 PROCEEDS RAISED Q1/22 REVENUE Q1/22 PRE-TAX NET INCOME1 Q1/22 PRE-TAX PROFIT MARGIN1 $20 bn $324 M $84 M 26.0% + 29% y/y + 38% y/y + 145% y/y + 11.4 p.p
Slide 21: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of supporting increased activity levels over a relatively fixed cost base (Revenue in C$ millions) F2017 F2018 F2019 F2020 F2021 Q1/21 Q1/22 Revenue $155,411 $216,106 $260,665 $204,636 $443,444 $55,260
Slide 22: CG Global Capital Markets
CG Global Capital Markets Disciplined mid-market focus, differentiated by scale, global capability, and stability Integrated capabilities provide unparalleled Disciplined focus in key growth sectors of the Deep regional expertise, differentiated by aftermarket support and facilitate lasting global e
Slide 23: Global Investment Banking
Global Investment Banking Unparalleled origination and placement capability Established leadership as a global midmarket investment bank • Agility allows us to harness leadership in emerging and high-growth Total Proceeds Raised C$ billions, Fiscal years ended March 31 segments while maintaining str
Slide 24: Global Advisory
Global Advisory Increased contributions driving margin growth Q1/22 Investment Banking & • Strong track record of ECM activity drives complementary growth in Advisory Revenue by Sector Technology 34% Advisory business Life Sciences 22% Financials & Real Estate 17% • Q1 Advisory revenue increased 269
Slide 25: Global Distribution and Trading
Global Distribution and Trading Leading independent franchise for best-in-class execution capabilities • Geographically broad and deep relationships covering 3,000+ institutions • Range of multi-asset capabilities (cash equities, fixed income, electronic trading, options, risk arbitrage) • Market ma
Slide 26: CG Principles of Corporate Social Responsibility and Sustainability
CG Principles of Corporate Social Responsibility and Sustainability ESG approaches to supporting the well being of our employees, clients and communities Operate with Integrity Respect People and Communities Respect our Planet We are committed to conducting our business in We think locally and globa
Slide 27: CG in the Community
CG in the Gommunity y ‘The Greater Boston ec] f NHS ea A the S powerot < jumanity \x. Schulich School of Business ¢) AY Ronald Meponald oe FOOD BANK black girls hocks RAINBOW second harvest RAILROAD HEARTLAND WCH] Zc W@W Ze National . (PY usiBHatSSRAion KS for KIDS SF-MARIN Q Breast Cancer Pas inato
Slide 28: An Excellent Investment Proposition
(TSX:CF): An Excellent Investment Proposition Driven to create enduring value for our employees, clients and shareholders Defensive business mix drives Strong balance sheet supports our earnings power through market capacity to invest in future growth cycles Capital markets businesses Growing wealth
Slide 29: 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 anal
Slide 30: Financial highlights
Financial highlights Q1 Fiscal 2022 Page 30
Slide 31: Fiscal first quarter 2022 results
Fiscal first quarter 2022 results1 Improved business mix contributing to earnings stability and growth • Q1/22 quarterly revenue of $524 million, up 39% year-over-year Q1/22 Q1/21 Y/Y Change F2021 F2020 Y/Y Change C$ millions (except per share data) Revenue $523,831 $377,728 38.7% $2,007,688 $1,223,
Slide 32: Global Capital Markets Q1 Fiscal 2022
Global Capital Markets Q1 Fiscal 2022 Capital Markets Revenue by region C$ millions, Fiscal quarters $487.0 (C$ millions except Q/Q Y/Y Y/Y Q1/22 Q4/21 Q1/21 F2021 F2020 $348.9 percentages) Change Change Change $324.2 $234.9 $241.5 Commissions & Fees $39,860 $62,516 -36.2% $49,397 -19.3% $212,431 $1
Slide 33: Global Wealth Management Q1 Fiscal 2022
Global Wealth Management Q1 Fiscal 2022 Wealth Management revenue by region1 C$ millions, Fiscal quarters $199.2 $195.0 (C$ millions except Q/Q Y/Y Y/Y Q1/22 Q4/21 Q1/21 F2021 F2020 $180.5 percentages) Change Change Change $146.0 $137.9 $137.9 $129.7 $128.4 Revenue - Canada $104,158 $107,000 -2.7% $
Slide 34: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Q4/21 Q1/22 % Change (As at March 31, 2021) (As at June 30, 2021) C$ millions (except for per share amounts and number of shares) Wo
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