Igm Financial Inc. · TSX:IGM

Igm Financial — Q2 2025 Earnings Presentation

50 slides from Igm Financial's earnings presentation, Aug 7, 2025

  1. Slide 1: IGM Financial Q2, 2025 Results

    IGM Financial Q2, 2025 Results August 7th, 2025

  2. Slide 2: Conference call participants

    Conference call participants JAMES O‘SULLIVAN DAMON MURCHISON LUKE GOULD KEITH POTTER PRESIDENT & CEO PRESIDENT & CEO PRESIDENT & CEO EXECUTIVE VICE-PRESIDENT IGM FINANCIAL IG WEALTH MANAGEMENT MACKENZIE INVESTMENTS & CFO IGM FINANCIAL 2

  3. Slide 3: Caution concerning forward-looking statements

    Caution concerning forward-looking statements Certain statements in this report, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial Inc.’s (IGM Financial, IGM or the Company) and, where applicable, its subsidiaries’ and str

  4. Slide 4: Non-IFRS financial measures & other financial measures

    Non-IFRS financial measures & other financial measures This report contains Non-IFRS financial measures and non-IFRS ratios that do not have standard meanings prescribed by International Financial Reporting Standards (IFRS) and may not be directly comparable to similar measures used by other compani

  5. Slide 5: Non-IFRS financial measures & other financial measures

    Non-IFRS financial measures & other financial measures Other items Other items for the six months ended June 30, 2025 consisted of: • ($10.0) million, including ($6.0) million recorded in the second quarter, reflecting the Company’s proportionate share of items Lifeco excludes from its base earnings

  6. Slide 6: Documents incorporated by reference

    Documents incorporated by reference This summary document and webcast are meant to discuss, not to serve as a substitute for, information included in these documents. The reader is hereby cautioned to refer to the following documents relating to IGM Financial’s results: 1. Documents related to IGM F

  7. Slide 7: Glossary

    Glossary AUA Assets Under Advisement LTM Last Twelve Months AUM Assets Under Management MA Mass Affluent1 AUM&A Assets Under Management & Advisement Mackenzie Mackenzie Investments CAGR Compound Annual Growth Rate MF Mutual fund EPS Earnings per Share NCI Non-controlling Interest ETF Exchange Traded

  8. Slide 8: James O’Sullivan

    James O’Sullivan President and CEO IGM Financial 8

  9. Slide 9: IGM Financial Q2, 2025 highlights

    IGM Financial Q2, 2025 highlights Financial highlights Operational highlights • Record high second quarter and LTM adjusted EPS1 Reported EPS Adjusted EPS1 • Record high quarter-end client assets at IG Wealth and Mackenzie $1.04 $1.07 • Continued strong momentum at IG Wealth and accelerating +14.3%

  10. Slide 10: Financial market and client investment returns

    Financial market and client investment returns IGM client return index1 Investment performance Q3/25 at YTD at 1.9 2024 Q1/25 Q2/25 Jul 31 Jul 31 2 1.8 IGM client investment return 15.5% 0.4% 3.6% 1.2% 5.2% 1.7 Equity markets: 1.6 Canada (S&P/TSX Composite) 21.6% 1.5% 8.5% 1.7% 12.0% 1.5 1.4 U.S. (S

  11. Slide 11: Industry operating environment

    Industry operating environment Second quarter industry long-term mutual fund net sales ($B) Total Industry Industry Asset Manager Peers Industry asset manager peers mutual fund net sales ($B) 28.7 Categories Q2/24 Q2/25 $ Change 7.0 14.0 11.4 14.2 2.1 Balanced (4.1) (0.9) 3.1 5.5 2.8 3.8 1.3 3.7 2.0

  12. Slide 12: Adjusted net earnings available to common shareholders by segment ($MM)

    Adjusted net earnings available to common shareholders1 by segment ($MM) Wealth management2 Asset management Corporate & other3 IGM consolidated Q2/24 Q2/25 +15% 252.7 220.4 +20% 130.8 108.7 +8% 84.8 91.7 +12% 26.9 30.2 1) A non-IFRS financial measure - see Non-IFRS financial measures and other fina

  13. Slide 13: Ending AUM&A ($B) including SI proportionate share

    Ending AUM&A ($B) including SI proportionate share Consolidated Wealth management Asset management AUM&A incl. SI1 3 2 2 2 2 +21% 521.1 Q2/24 Sub-advised AUM to Wealth Management: Q2/25 Q2/25 $87.4B (Q2/24 431.7 $79.4) 224.6 202.1 +13% +33% 146.7 +12% 150.7 129.7 113.0 +21% 47.6 +83% 122.7 137.2 +13

  14. Slide 14: Wealth Management

    WEALTH MANAGEMENT Damon Murchison President & CEO IG Wealth Management 14

  15. Slide 15: Wealth management Q2, 2025 highlights

    Wealth management Q2, 2025 highlights Record AUM&A Second quarter Operational highlights client returns1 $146.7B • Record high quarter-end AUM of $129.5B, up 13.1% versus Q2/24 +13.1% vs Q2/24 3.6% • Strong insurance and mortgage performance +3.6% vs Q1/25 • Positioned for continued growth with July

  16. Slide 16: IG Wealth Management net flows

    IG Wealth Management net flows IG Wealth Management adjusted gross and net flows1 ($MM) IG Wealth Management net flows2 ($B) (LTM, as at July 31, 2025) Month of June Gross Inflows Gross Outflows Net Flows 1,364 1,149 1,052 1,027 1,229 Total Net Flows IGM Product Net Flows Cash, GICs, & HISAs 620 805

  17. Slide 17: IG Wealth Management Q2, 2025 operating results

    IG Wealth Management Q2, 2025 operating results Gross inflows Gross outflows rate Assets under advisement ($MM) (Quarterly annualized1) ($B) Q2/25 highlights IGM Solutions (AUM) 3rd party ▪ Gross inflows of $3.6B, up 1.3% 3,565 3,613 Cash, GICs, HISAs year-over-year 11.7% 141.5 146.7 5.9 129.7 6.3 1

  18. Slide 18: Record inflows, driven by strong high-net-worth & mass affluent client acquisition

    Record inflows, driven by strong high-net-worth & mass affluent client acquisition Gross flows from newly acquired clients (Q2, $MM) Gross flows from newly acquired clients (LTM, $B) By client assets brought to IG Wealth By client assets brought to IG Wealth Growth 1 Mass market Mass affluent HNW 5-

  19. Slide 19: Continued momentum in mortgage and insurance

    Continued momentum in mortgage and insurance Mortgage funding1 New annualized insurance premiums ($MM) ($MM) 328 21 258 237 18 13 Q2/23 Q2/24 Q2/25 Q2/23 Q2/24 Q2/25 • Mortgage funding up 27% year-over-year • New annualized insurance premiums up 18% year-over-year • IG Mortgages serviced1 at $6.9B a

  20. Slide 20: Corporate channel enabling entrepreneurial advisors and driving productivity

    Corporate channel enabling entrepreneurial advisors and driving productivity 20231 Q2/252 Corporate channel enables entrepreneurial advisors to: Support mortgage and insurance needs ENTREPRENURIAL TEAM ADVICE ENTREPRENURIAL TEAM ADVICE 1 FOCUS = > $250K 1 FOCUS = > $250K • Mortgage funding up 27% vs

  21. Slide 21: One Dealer model simplifies IG Wealth Management’s structure

    One Dealer model simplifies IG Wealth Management’s structure and supports future growth On July 1, 2025, IG Wealth Management merged their former mutual fund and investment dealer into a single, dual registered Supports dealer, which… future growth Furthers commitment Completes the last portion Stre

  22. Slide 22: Rockefeller Q2, 2025 update

    Rockefeller Q2, 2025 update Q2, 2025 highlights LTM client asset1 growth Private advisor growth (US$B) 3 450 2 12.8 170.8 414 1▪ Organic client asset growth of 1 12.1 400 US$5.9B since Q2/24; Q2 5.9 375 140.0 growth of US$2.9B 350 321 2▪ Inorganic client asset growth of 300 US$12.1B since Q2/24; Q2

  23. Slide 23: Wealthsimple Q2, 2025 update

    Wealthsimple Q2, 2025 update Q2, 2025 highlights AUA by quarter Client count by quarter1,2 ($B) (‘000s) 2,834 2 84.5 1 2,753 1 ▪ Wealthsimple’s AUA grew to 2,500 2,607 2,577 2,393 $84.5B, up 94% year-over-year 73.0 2,255 2,228 2,169 and 16% sequentially 64.0 ▪ AUA growth of $11.5B during 52.1 the qu

  24. Slide 24: Asset Management

    ASSET MANAGEMENT Luke Gould President & CEO Mackenzie Investments 24

  25. Slide 25: Asset management Q2, 2025 highlights

    Asset management Q2, 2025 highlights Operational highlights • Positive inflection point in Mackenzie’s retail net sales adds to existing Record quarter strong momentum in strategic partnerships & institutional Second quarter ending AUM&A client returns1 $224.6B • First positive quarterly investment

  26. Slide 26: Mackenzie Investments net sales

    Mackenzie Investments net sales Mackenzie adjusted investment fund flows1 ($MM) Mackenzie adjusted investment fund net flows1 ($B) MF Gross Sales MF Redemptions MF Net Sales ETF Net Flows (LTM, as at July 31, 2025) Month of June Total Retail 8.0 1,183 804 835 837 955 771 510 502 630 663 281 706 529

  27. Slide 27: Mackenzie Investments Q2, 2025 operating results

    Mackenzie Investments Q2, 2025 operating results Q2/25 highlights NET SALES ($MM)2,5 Q2/24 Q2/25 Change Retail mutual funds (765) (418) 347 ▪ Significant improvement in retail investment fund net sales, better by $624MM versus Q2/24 Retail ETFs (2) 275 277 Retail investment funds (767) (143) 624 ▪ R

  28. Slide 28: Investment boutique retail mutual fund & ETF

    Investment boutique retail mutual fund & ETF Fixed Managed Value-Oriented Quality Growth-Oriented Sustainable Core & Dividend Other Income Solutions North Global Putnam Global Equity Multi-Asset ChinaAMC & Cundill American Ivy Growth Bluewater Resources Greenchip Quantitative Fixed Income (sub-advis

  29. Slide 29: Spotlight: Global Quantitative Equity boutique

    Spotlight: Global Quantitative Equity boutique Background • Boston-based (added in 2017) • $18B total AUM “Holistic Quant” approach promotes all-weather performance across cycles and environments • Holistic, all-weather approach • 11-person experienced team Assets Under Management ($B) Trailblazing

  30. Slide 30: Huatai-PineBridge

    Chinese investment fund industry AUM and net flows; ChinaAMC is an industry leader Chinese investment fund industry top 10 long-term Growth Chinese investment fund industry fund provider market shares (at June 30, 2025) QoQ 1-year Ending AUM1 CAD/RMB = 5.2292 (RMB¥ Trillions) Money-market funds 33.7

  31. Slide 31: ChinaAMC total AUM and investment fund net flows

    total AUM and investment fund net flows continuity Growth ChinaAMC ending AUM1 QoQ 1yr (RMB¥ billions) Other (primarily institutional) 2,851 7% 32% Money-market funds 2,670 2,465 Long-term investment funds 2,358 2,159 2,102 10% 34% 2,089 1,919 1,740 1,733 1,722 1,772 1,802 1,826 1,824 1,739 1,791 1,

  32. Slide 32: Capital Partners Q2, 2025 update

    Capital Partners Q2, 2025 update Highlights Northleaf AUM history1 Northleaf LTM AUM continuity1 ($B) ($B) 5.2 32.8 (1.4) (0.1) ▪ Fundraising of $1.7B for the 29.1 32.0 32.8 quarter ended June 30, 2025 ▪ LTM fundraising of $5.2B, AUM 26.6 growth of 13% 24.1 19.5 ▪ Northleaf AUM has grown at a 20% CA

  33. Slide 33: Keith Potter

    Keith Potter Executive Vice-President & CFO IGM Financial 33

  34. Slide 34: IGM Financial Q2, 2025 financial highlights

    IGM Financial Q2, 2025 financial highlights • Record high Q2 adjusted EPS1 of $1.07, up 15.1% year-over-year Adjusted EPS1 Reported EPS • Adjusted EPS excludes Lifeco other items which represented ($6.0MM) during Q2 $1.07 $1.04 • Strong quarterly results driven by core businesses and strategic +15.1

  35. Slide 35: Total assets under management & advisement

    Total assets under management & advisement IGM assets under management & advisement Change in IGM assets under management & advisement ($B) ($B) Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 LTM Daily AUM&A Quarterly Average AUM&A Opening AUM&A excluding sub-advisory to Canada Life 200.9 202.5 212.3 217.5 222.1 202

  36. Slide 36: IGM Financial consolidated profitability

    IGM Financial consolidated profitability $ Millions (unless otherwise noted): Change QoQ Change YoY IGM Financial Consolidated Q2/24 Q1/25 Q2/25 $ % $ % Days in the period 91 90 91 1.1% 0.0% ▪1 Higher average AUM&A, up 9.1% year- Average AUM & AUA ($ Billions) over-year, supporting increases in weal

  37. Slide 37: IG Wealth Management – key profitability drivers

    IG Wealth Management – key profitability drivers Daily average assets ($B), advisory and product & Key revenue & expenses as bps of program fee rate (bps)1 respective driver (AUA or AUM)1 142.5 141.2 139.4 132.9 98.9 98.4 97.7 97.4 98.4 Advisory fees 2 128.1 17.0 16.7 Other AUA 16.1 15.2 14.6 125.5

  38. Slide 38: IG Wealth Management profitability

    IG Wealth Management profitability $ Millions (unless otherwise noted): Change QoQ Change YoY ▪1 Advisory and product & program fees up 9.4% year- IG Wealth Management Q2/24 Q1/25 Q2/25 over-year driven by strong client asset growth $ % $ % Days in the period 91 90 91 1.1% 0.0% Average assets under

  39. Slide 39: Mackenzie Investments – key profitability drivers

    Mackenzie Investments – key profitability drivers Average AUM ($B), net asset management fee rate1 (bps) Net asset management fee rates1 (as bps of respective AUM) 213.9 217.5 217.9 207.5 Sub-advisory and 201.8 AUM to Wealth Management 78.7 78.5 78.0 75.8 73.3 83.9 85.3 85.2 Third Party AUM 81.8 Thi

  40. Slide 40: Mackenzie Investments profitability

    Mackenzie Investments profitability $ Millions (unless otherwise noted): Change QoQ Change YoY Mackenzie Investments Q2/24 Q1/25 Q2/25 $ % $ % Days in the period 91 90 91 1.1% 0.0% ▪1 Net asset management fees up 4.1% year-over- Average assets under management ($B) year, driven by strong asset growt

  41. Slide 41: ChinaAMC – AUM and earnings

    ChinaAMC – AUM and earnings ChinaAMC ending AUM1 IGM Financial share of ChinaAMC earnings (RMB¥ billions) (CAD millions) 1-Year Other (primarily institutional) Growth Q3/24 includes seed capital Money-market funds marks and other one-time 32% items 32.9 2,851 Long-term investment funds 30.6 2,670 29

  42. Slide 42: Adjusted net earnings by segment and company ($MM)

    Adjusted net earnings available to common shareholders1 by segment and company ($MM) Corporate IGM Wealth management Asset management2 & other3 consolidated +15% 252.7 Q2/24 220.4 Q2/25 +18% 131.5 111.7 FVTOCI +3% 55.9 57.8 +5% +12% 25.5 26.7 +76% 26.9 30.2 4.2 7.4 0.4 0.3 (2.8) (0.7) 1) A non-IFRS

  43. Slide 43: Summary: segment breakdown

    Summary: segment breakdown Adj. earnings1 by segment Strategic investments – interest and value Q2/24 Adj. Q2/25 Adj. YoY Interest Accounting Q2/25 Net Indicative value Q2/25 Indicative $ millions earnings earnings change Q2/24 | Q2/25 basis carrying value assumption value Wealth management2 IG Weal

  44. Slide 44: Returning capital to shareholders while strengthening financial flexibility

    Returning capital to shareholders while strengthening financial flexibility Return of capital to Leverage Balanced approach to capital shareholders (Debt/LTM Adj. EBITDA1) allocation ($MM) Return of capital to shareholders: Dividends Share repurchases • Dividend of $0.5625 per share declared 212.6 d

  45. Slide 45: Q&A

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  46. Slide 46: Appendix

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  47. Slide 47: Adjusted net earnings and valuation by company ($MM)

    Adjusted net earnings available to common shareholders1 and valuation by company ($MM) Adjusted net earnings available to common shareholders1 6 1,001 2024 939 Analyst 490 536 Consensus2 2025 235 241 FVTOCI 102 107 100 106 16 18 6 3 (10) (7) 2025 analyst 4 UNALLOCATED 4 OTHER CAPITAL estimates2 EPS

  48. Slide 48: IGM Financial adjusted cash earnings & dividend payout ratio

    IGM Financial adjusted cash earnings & dividend payout ratio IGM Financial adjusted cash earnings1,2 Dividend payout ratio2,3 ($MM) (LTM) Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 LTM 69% 68% Adjusted Net Earnings 1 220.4 244.1 250.0 237.8 252.7 984.5 64% 64% 62% 62% Add: capitalized sales commission amortizati

  49. Slide 49: 2025 expense guidance

    2025 expense guidance Guidance and outlook1: combined operations & support and business development expenses IGM consolidated2 (year-over-year change) 5-year technology & operations transformation 7% announced 6% 5% 3.8% 4% 3% 4 2.2% 2.3% 3 1.7% 1% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 G

  50. Slide 50: IGM Financial debt/ LTM adj. EBITDA

    IGM Financial debt/ LTM adj. EBITDA1 Total Debt ($MM) Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Long-term Debt 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 Total debt 2,400.0 2,400.0 2,400.0 2,400.0 2,400.0 1 Adj. EBITDA before sales commissions (LTM, $MM) Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Adj. EBIT1 1,264.2 1,290.8 1,3

IGM Financial — Q2 2025 Earnings Presentation on 6ix