Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (June 2022)
36 slides from Canaccord Genuity's investor presentation, June 2022
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation JUNE 2022
Slide 2: Forward looking statements
Forward looking statements Forward Looking Statements: 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 a
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
Slide 4: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $ 2.0 bn $96.1 bn ANNUAL REVENUE CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment $61 bn 596 helping individual investors, private clients an
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 Strong capital markets activity levels with Q4 Fiscal 2022 $491 M $96.1 bn $94.5 M $0.52 increased Advisory 3 months ended -29.1% y/y +8.2% y/y
Slide 6: Continued strong results on all key measures
Continued strong results on all key measures Strong contributions from all businesses and geographies Revenue1 - C$ millions Pre-tax Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 $417.6 $1,993 $2,041 $95 $491 $113 $1,191 $1,224 Expanding into our core strengths
Slide 7: Positioned for long-term success
Positioned for long-term success Building upon our strategy of long-term value creation Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 - 2018 Fiscal 2019 to 2021 Fiscal 2022 and bey
Slide 8: Transformed our business mix
Transformed our business mix to provide stability through market cycles Broad-based revenue and net income contributions without concentration in any sector or region Fiscal 2022 Firmwide Revenue by Division Firmwide revenue1 C$ millions, fiscal years ended March 31 35% 64% Wealth Capital $2,041 Man
Slide 9: We have steadily and sustainably improved earnings stability
We have steadily and sustainably improved earnings stability A lower risk business model with growing contributions from wealth management Pre-tax net income and profit margins1,2 Diluted EPS1 C$ millions and %, fiscal years ended March 31 C$ fiscal years ended March 31 $417.6 $386.1 21% 19% 10% 11%
Slide 10: Disciplined expense management
Disciplined expense management Improving operating leverage to enhance profitability Non-compensation expenses as a % of revenue1 Pre-tax profit margin1 Fiscal years ended March 31 Fiscal years ended March 31 20.5% 19.4% 28.0% 29.6% 28.4% 11.4% 19.0% 18.4% 10.8% 10.1% 2018 2019 2020 2021 2022 2018 2
Slide 11: Improving shareholder returns
Improving shareholder returns Deploying capital in ways that increase the long-term value of our business, and optimize value for shareholders Common Share Dividends Common shares outstanding (Average diluted) C$, Fiscal years ended March 31 Fiscal years ended March 31 $0.32 Fiscal 2022 capital de
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 CLIENT ASSETS FY 2022 REVENUE FY 2022 PRE-TAX NET INCOME2 FY 2022 PRE-TAX PROFIT MARGIN2 $96.1 bn $720.4 M $ 148.5M 21% + 8.2% y/y +8.6 % y/y + 9.8% y/y 0.2 p.p. y/y Total Client Assets Total Wealth Management R
Slide 14: CG Global Wealth Management: Strengthening margins and earnings contributions
CG Global Wealth Management: Strengthening margins and earnings contributions Proven track record of creating substantial value in this segment (Revenue in C$ thousands) F2017 F2018 F2019 F2020 F2021 F2022 INVESTING WITH DISCIPLINE TO ADVANCE OUR LONG-TERM EARNINGS POTENTIAL Revenue $132,292 $168,88
Slide 15: 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 TRANSFORMATIONAL A business model centred £3.8 bn in client assets, 14,000+ private clients, £170 m in client Funds & accounts managed by
Slide 16: 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 17: 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 1% y/y to C$52.8 bn • Drive organic growth and margin expansion • Cross fertilization of wealth planning and investment management Q4/22 pre-ta
Slide 18: 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 17.5% y/y to $37.9 bn; Average AUA per IA team grew 16% y/y to $260M • Continue to advance recruiting , client experience and organi
Slide 19: 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 Q4/22 ended December 31 5-year CAGR Net 18.8% contribution 30% $20 bn
Slide 20: 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 upon the CGWM brand in Australia 26.6% y/y to C$5.4bn • Increase scale through targeted
Slide 21: CG Global Capital Markets
CG Global Capital Markets: A powerful mid-market competitor Diverse revenue streams provide stability and profitability through market cycles FY 2022 PROCEEDS RAISED FY 2022 REVENUE FY 2022 PRE-TAX NET INCOME1 FY 2022 PRE-TAX PROFIT MARGIN1 $61 bn $1.3 bn $324.6 M 24.9% - 29% y/y -0.7% y/y -0.1 % y/
Slide 22: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of supporting increased activity levels over a relatively fixed cost base (Revenue in C$ thousands) F2018 F2019 F2020 F2021 F2022 Revenue $216,106 $260,665 $204,636 $443,444 $341,453 DIFFERENTIATED GLO
Slide 23: 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 24: Global Investment Banking
Global Investment Banking Unparalleled origination and placement capability Fiscal 2022 Investment Banking Revenue by Sector • Agility allows us to harness leadership in emerging and high-growth segments while maintaining strong capability in historic areas of strength Technology 34% • Raised $61.0
Slide 25: Global Advisory
Global Advisory Record advisory activities offsetting ECM declines and driving margin growth • Strong track record in ECM driving complementary growth in Advisory business, which is typically Fiscal 2022 Advisory Revenue by Sector counter-cyclical to new issue business • Q4 Advisory revenue increase
Slide 26: 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 27: 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 28: CG in the Community
CG in the Community ea A the S powerot < umanity \» Healthcare | REVOLUTIONIZED WCHI | ee FS for KIDS Schulich School of Business ‘The Greater Boston FOOD BANK. "eotng antrn Manoachnats io) Ronald McDonald House Charities J. Australia RAINBOW RAILROAD SF-MARIN FOOD BANK SECOND HARVEST NHS FOOD BANK
Slide 29: 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 30: 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 31: Financial highlights
Financial highlights Q4 and Fiscal 2022 Page 31
Slide 32: Fiscal fourth quarter and fiscal 2022 results
Fiscal fourth quarter and fiscal 2022 results1 Improved business mix contributing to earnings stability and growth • Q4/22 quarterly revenue of $490.8 million, down 29.1% year-over-year, on anticipated reduction in investment Q4/22 Q4/21 Y/Y Change F2022 F2021 Y/Y Change banking activity C$ thousand
Slide 33: Global Capital Markets Q4 and Fiscal 2022
Global Capital Markets Q4 and Fiscal 2022 Capital Markets Revenue by region C$ millions, fiscal quarters $487.0 (C$ thousands except Q/Q Y/Y Y/Y Q4/22 Q3/22 Q4/21 F2022 F2021 $348.9 $361.9 percentages) Change Change Change $324.2 $304.9 $312.0 $234.9 $241.5 Commissions & Fees $48,808 $44,192 10.4% $
Slide 34: Global Wealth Management Q4 and Fiscal 2022
Global Wealth Management Q4 and Fiscal 2022 Wealth Management revenue by region2 C$ millions, fiscal quarters $199.2 $195.0 (C$ thousands except Q/Q Y/Y Y/Y $184.9 Q4/22 Q3/22 Q4/21 F2022 F2021 $180.5 $174.3 percentages) Change Change Change $166.2 $146.0 $137.9 $137.9 $129.7 $128.4 Revenue - Canada
Slide 35: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Q3/22 Q4/22 % Change (As at December 31, 2021) (As at March 31, 2022) C$ millions (except for per share amounts and number of shares
Slide 36: Non-IFRS measures
Non-IFRS measures Non- IFRS Measures: Certain non-IFRS measures are utilized by the Company as measures of financial performance. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. No
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