Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Canaccord Capital — Shareholder Meeting (2006)
22 slides from Canaccord Genuity's shareholder meeting presentation, 2006
Slide 1: 2006 AGM Agenda
1 2006 AGM Agenda 1. Company Developments: Peter M. Brown 2. Official Business of the Meeting: Peter M. Brown 3. Financial Review of FY2006 and Q1/07: Bradley W. Kotush 4. Report of the Chairman of the Board: Peter M. Brown 2 1
Slide 2: An evolution in leadership & a need for change
Company Developments Peter M. Brown, Chairman & CEO 3 An evolution in leadership & a need for change • Natural evolution in company leadership – Peter Brown to turn 65 in 2006 – Best practices in governance have Chairman and CEO roles independent – Time for a change • Succession is very important du
Slide 3: Progression of our leadership team – Splitting Chairman and CEO positions
Progression of our leadership team – Splitting Chairman and CEO positions • Effective today: – Mike Greenwood Resigned as Director and President & COO – Paul Reynolds Appointed President of Canaccord Capital Inc. (CCI) • Paul Reynolds retains: – Director of CCI – Global Head of Canaccord Adams – Pre
Slide 4: Hand off of COO position
Progression of our leadership team – Hand off of COO position • Effective today Mark Maybank: – Executive VP & new COO of Canaccord Capital Inc. – New President & COO of Canaccord Capital Corporation (Canadian operating subsidiary), subject to regulatory approval • Mark Maybank retains: – Deputy Hea
Slide 5: Natural transition
Natural transition • Great enthusiasm for the future • Culture of Canaccord will not change — an open and entrepreneurial environment is vital to our success • Strengthen some geographic operations • Head office will continue to be run out of Vancouver – Core functions to remain – Global firms benef
Slide 6: Official Business of the Meeting
Michael Greenwood 11 Official Business of the Meeting Peter M. Brown, Chairman & CEO 12 6
Slide 7: Official Business of the Meeting
Official Business of the Meeting • Introduction of Directors, nominees for election as Director and Auditors • Appointment of scrutineer and report on attendance and quorum • Notice of Meeting and minutes of last Meeting 13 Official Business of the Meeting Appointment of auditors and remuneration Er
Slide 8: Official Business of the Meeting
Official Business of the Meeting Election of Directors: Peter M. Brown Timothy J.D. Hoare Arpad A. Busson Terrence A. Lyons William J. Eeuwes Paul D. Reynolds Michael D. Harris Michael A. Walker Brian D. Harwood John B. Zaozirny 15 Official Business of the Meeting Approval of Securities Based Compen
Slide 9: Third consecutive record year: FY2006
Review of Financial Performance Bradley W. Kotush, Executive Vice President & CFO 17 Third consecutive record year: FY2006 Revenue Net income (C$ millions) 35% 67% $583.4 $81.2 $432.8 $48.6 FY2005 FY2006 FY2005 FY2006 18 9
Slide 10: Delivering on our growth strategy
Delivering on our growth strategy Earnings per share – diluted Return on equity (C$) (%) .p .(1) 57% 9.7 p $1.74 33.6% $1.11 23.9% FY2005 FY2006 FY2005 FY2006 (1) p.p.: percentage points 19 Diversified revenue through global expansion % of total Canaccord Capital Inc. revenue (C$ millions) Fiscal 20
Slide 11: Record Q1/07 results
Record Q1/07 results Revenue Net income (C$ millions) (C$ millions) 8% % 10 $206.1 134 $25.9 $99.0 $11.1 Q1/06 Q1/07 Q1/06 Q1/07 Earnings per share – diluted Return on equity (C$) p.p. % $0.54 14.9 34.7% 125 19.8% $0.24 Q1/06 Q1/07 Q1/06 Q1/07 21 Ideas for Progress Peter M. Brown, Chairman & CEO 22
Slide 12: The evolution of a culture focused on growth companies
The evolution of a culture focused on growth companies 1968 1993 2006 BC-based National Global Venture Capital Investment Dealer Investment Dealer Firm • Hemsworth Turton • Over 400 • Over 1500 & Co. employees employees • Became Canarim • 6 Canadian • 32 offices Investment Corp. branches • Internati
Slide 13: Canaccord – the results of our efforts
Canaccord – the results of our efforts Revenue Operational statistics (C$ millions) (as of March 31, 2006) FY2001 FY2006 CAGR GR CA Net Income . 2% $583.4 $3.3 $81.2 89.5% 20 (C$ million) Employees 1,142 1,488 5.4% $93.0 Investment Advisors 395 430 1.7% AUA $4.4 $14.3 26.6% (C$ billion) FY1996 FY200
Slide 14: Private Client Services: Realizing on strategic vision
Private Client Services: Benefiting from investments Total revenue Income before income taxes (C$ millions) 26% 21% $225.2 $61.2 $178.2 $50.7 FY2005 FY2006 FY2005 FY2006 27 Realizing on strategic vision for Private Client Services • Pre-IPO strategy put in place to renew focus on Wealth Management •
Slide 15: Strong and steady AUM and AUA
Strong and steady AUM and AUA Assets Under Management (AUM) Assets Under Administration (AUA) (C$ millions) (C$ billions) 61% 43% $613 $14.3 $10.0 $380 2005 2006 2005 2006 Fiscal Year Fiscal Year 29 Focus on Wealth Management gaining traction AUA/Investment Advisor Private Client Services Revenue as
Slide 16: Expanding our product offerings
Expanding our product offerings • Grew Canaccord’s Alliance program • Added Dixon Mitchell and Connor, Clark & Lunn 31 Canaccord Adams: Income and revenue growth Total revenue (1) Income before income taxes (C$ millions) 39% 55% $333.7 $102.0 $239.7 $65.9 FY2005 FY2006 FY2005 FY2006 1. Includes Fisc
Slide 17: Canaccord Adams: Building depth in the global Energy sector
Canaccord Adams: Integrated capital markets operations • Re-branded Global Capital Markets group as Canaccord Adams • 10 offices in three countries • More balanced sector and geographic revenue mix • Strategic penetration into the US mid-cap market • Integration and consolidation remain a priority f
Slide 18: Diversification: Key to our success strategy
Diversification: Key to our success strategy Canaccord Adams FY2005 Canaccord Adams FY2006 sector coverage sector coverage (% of revenue) (% of revenue) 2% 11% 5% 18% 30% 34% 16% 16% 41% 27% (% of transactions) (% of transactions) 22% 22% 39% 37% 30% 26% 2% 7% 7% 8% Mining & Metals Energy Technology
Slide 19: Our people: The reason we are winning
Our people: The reason we are winning • Dedicated to recruiting, training and keeping the very best • We are in the “smart people business” • Team-based, goal-oriented, consensus-driven culture: • Foster innovate thinking • Provide the tools and products to bring ideas into fruition 37 Our people: D
Slide 20: Our leaders are the product of our culture
Our leaders are the product of our culture Brad Kotush 1998 Vice President of Special Projects CFO and Corporate Secretary for Canaccord Executive Vice President & CFO Capital Europe in UK SVP Finance for Canaccord Capital Inc. in Canada Jamie Brown Managing Director, Corporate Finance, Public Head
Slide 21: Thanks to our clients and employees for an outstanding year
Thanks to our clients and employees for an outstanding year • Our clients continue to honour us with their patronage and have been key partners in our growth • This year’s success would not have been possible without the hard work and innovative thinking of our employees • Will continue to invest in
Slide 22: Caution regarding forward looking statements
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 or beliefs regarding future events includi