Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (November 2021)
34 slides from Canaccord Genuity's investor presentation, November 2021
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation NOVEMBER 2021
Slide 2: Forward looking statements and non-IFRS measures
Forward looking statements and non-IFRS measures 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, e
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 $1.0 bn $98 bn Fiscal YTD REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment banking, $36 bn 327 helping individual investors, private
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 We continue to experience strong Q2 Fiscal 2022 $475.2 M $98.1 bn $95.7 M $0.58 capital markets activity 3 months ended +22% y/y +34% y/y +89%
Slide 6: Continued strong results on all key measures
Continued strong results on all key measures Strong contributions from all businesses and geographies Revenue1 - C$ millions Pre-tax Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 H1/21 and H1/22 ended September 30 H1/21 and H1/22 ended September 30 Expanding int
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 Q2/22 Firmwide Revenue by Division Firmwide revenue1 C$ millions, fiscal years ended March 31 H1/21 and H2/22 ended September 30 65%
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 H1/21 and H1/22 ended Septemb
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 H1/21 and H1/22 ended September 30 H1/21 and H1/22 ended September 30 21.0% 19.4% 28.4% 29.
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) Q2/22 quarterly common share dividend of $0.075 C$, Fiscal years ended March 31 Fiscal y
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 Q2/22 CLIENT ASSETS Q2/22 REVENUE Q2/22 PRE-TAX NET INCOME2 Q2/22 PRE-TAX PROFIT MARGIN2 $98 bn $166 M $32 M 19% +34 % y/y + 14% y/y + 18% y/y + 0.6 p.p y/y Total Client Assets Total Wealth Management Revenue1 P
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 27% y/y to C$58bn • Drive organic growth and margin expansion • Cross fertilization of wealth planning and investment management Q2/22 pre-tax
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 45% y/y to $36 billion; Average AUA per IA team grew 44% y/y to • Continue to advance recruiting , client experience and organic gro
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 Q2/22 ended September 30 5-year CAGR Net 18.8% contribution 30% $18.0
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 43% y/y to C$4.8bn • 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 Q2/22 PROCEEDS RAISED Q2/22 REVENUE Q2/22 PRE-TAX NET INCOME1 Q2/22 PRE-TAX PROFIT MARGIN1 $16 bn $305 M $73 M 24% - 18% y/y + 26% y/y + 70% y/y + 6.2p.p. y/y
Slide 21: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of supporting increased activity levels over a relatively fixed cost base (Revenue in C$ thousands) F2017 F2018 F2019 F2020 F2021 H1/21 H1/22 Revenue $155,411 $216,106 $260,665 $204,636 $443,444 $122,7
Slide 22: CG Global Capital Markets
CG Global Capital Markets Disciplined mid-market focus, differentiated by scale, global capability, and stability Integrated capabilities provide unparalleled Disciplined focus in key growth sectors of the Deep regional expertise, differentiated by aftermarket support and facilitate lasting global e
Slide 23: Global Investment Banking
Global Investment Banking Unparalleled origination and placement capability Established leadership as a global midmarket investment bank • Agility allows us to harness leadership in emerging and high-growth Total Proceeds Raised C$ billions, Fiscal years ended March 31 segments while maintaining str
Slide 24: Global Advisory
Global Advisory Increased contributions driving margin growth H1/22 Investment Banking & • Strong track record of ECM activity drives complementary growth in Advisory Advisory Revenue by Sector business Technology 47% Life Sciences 17% • Q2 Advisory revenue increased 279% y/y to $139.0M with 75% con
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 jumanity \x. the ea powerer /< a WCHI M7 Z? capitatize HOSPITAL FOUNDATION SS Healthcare | REVOLUTIONIZED 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 for KI
Slide 28: (TSX:CF): 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 Q2 Fiscal 2022 Page 30
Slide 31: Fiscal second quarter 2022 results
Fiscal second quarter 2022 results1 Improved business mix contributing to earnings stability and growth • Q2/22 quarterly revenue of $475 million, up 22% year-over-year Q2/22 Q2/21 Y/Y Change 6M 2022 6M 2021 Y/Y Change C$ thousands (except per share data) Revenue $475,161 $390,357 21.7% $998,992 $76
Slide 32: Global Capital Markets Q2 Fiscal 2022
Global Capital Markets Q2 Fiscal 2022 Capital Markets Revenue by region C$ millions, Fiscal quarters $487.0 (C$ thousands except Q/Q Y/Y Y/Y Q2/22 Q1/22 Q2/21 6M 2022 6M 2021 $348.9 percentages) Change Change Change $324.2 $304.9 $234.9 $241.5 Commissions & Fees $41,966 $39,860 5.3% $49,118 -14.6% $
Slide 33: Global Wealth Management Q2 Fiscal 2022
Global Wealth Management Q2 Fiscal 2022 Wealth Management revenue by region2 C$ millions, Fiscal quarters $199.2 $195.0 (C$ thousands except Q/Q Y/Y Y/Y Q2/22 Q1/22 Q2/21 6M 2022 6M 2021 $180.5 percentages) Change Change Change $166.2 $146.0 $137.9 $137.9 $129.7 $128.4 Revenue - Canada $72,367 $104,
Slide 34: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Q1/22 Q2/22 % Change (As at June 30, 2021) (As at September 30, 2021) C$ millions (except for per share amounts and number of shares
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