Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (August 2024)
36 slides from Canaccord Genuity's investor presentation, August 2024
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation August 2024
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
Slide 4: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $429 M $106 bn Q1 REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment $11 bn 113 helping individual investors, private clients and bank
Slide 5: Financial Highlights
Financial Highlights Continued deceleration in global markets impacted financial performance in Q4 and Fiscal 2024 Client Pre-tax Net Diluted Revenue1 Assets Income1,2,3 EPS1 Q1 Fiscal 2025 $429.0 M $105.8 bn $34.8 M $0.13 3 months ended +24.9% y/y +8.8% y/y +5.8 % y/y3 +85.7% y/y3 June 30 Fiscal 20
Slide 6: Defensive revenue mix provides downside protection
Defensive revenue mix provides downside protection Investments to increase contributions from Wealth Management and Advisory helped reduce our reliance on underwriting activity Revenue1 - C$ millions Pre-tax Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 Q1/24 an
Slide 7: Positioned for long-term success
Positioned for long-term success We use challenging periods productively to seize opportunities for targeted and disciplined growth Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 -
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 Firmwide revenue1 Q1/25 Firmwide Revenue by Operating Division C$ millions, fiscal years ended March 31 Q1/24 and Q1/25 ended June 30
Slide 9: Established track record of steadily and sustainably improving earnings stability
Established track record of steadily and sustainably improving earnings stability We have spent years shaping our business to deliver predictable performance in uncertain times Pre-tax net income and profit margins1,2 Diluted EPS1 % and C$ millions, fiscal years ended March 31 C$ fiscal years ended
Slide 10: Managing expenses carefully in a lower revenue environment
Managing expenses carefully in a lower revenue environment Focused on improving our operating leverage to support profitability through market cycles Non-compensation expenses as a % of revenue1 Pre-tax profit margin1 Fiscal years ended March 31 Fiscal years ended March 31 Q1/24 and Q1/24 ended June
Slide 11: 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 12: Increased employee ownership supports our partnership culture
Increased employee ownership supports our partnership culture Promotes alignment between our business, clients, and fellow shareholders Independently governed Limited Partnership to be owned by employees • Acquired approximately 9.7% of outstanding CF common shares in March 2024 • Permanent capital
Slide 13: Global Wealth Management
Global Wealth Management An important source of earnings power and stability in difficult markets Q1/25 CLIENT ASSETS Q1/25 REVENUE Q1/25 PRE-TAX NET INCOME1 Q1/25 PRE-TAX PROFIT MARGIN1,2 $106 bn $216 M $33 M 15% Total Client Assets - C$ billions, Total Wealth Management Revenue Pre-tax net income
Slide 14: CG Wealth Management: Strengthening margins and earnings contributions
CG Global Wealth Management: Strengthening margins and earnings contributions On track to create substantial value in this segment INVESTING WITH DISCIPLINE TO ADVANCE OUR LONG-TERM EARNINGS POTENTIAL (Revenue in C$ thousands, AUA/AUM in C$ millions) F2020 F2021 F2022 F2023 F2024 Q1/24 Q1/25 Investi
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 Funds & accounts managed TRANSFORMATIONAL £3.8 bn in client by HPS investment Partners assets, 14,000+ LLC invest £125M into UK Acquired M
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 Cloud-based client communication tool Financial planning software Dependencies) (UMA)
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 Highlights Strategic Priorities Q1/25 revenue increased 4.2% y/y to $107.5M, a new quarterly record for this business • Drive organic growth and margin expansion • Cross fertilization of wealth
Slide 18: CG Wealth Management: Canada
CG Wealth Management: Canada Building on our success as the leading independent wealth manager in the country Highlights Strategic Priorities Q1/25 revenue increased 24.0% y/y to $90.0 million • Continue to advance recruiting , client experience and organic growth initiatives Higher interest rat
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 9M/24 ended December 31 Net contribution 30% $23 bn in client assets
Slide 20: CG Wealth Management: Australia
CG Wealth Management: Australia Growing CG’s national footprint in Australia Highlights Strategic Priorities Q1/25 revenue increased 20.9%y/y to $18.4M • Continue to build upon the CGWM brand in Australia Total client assets in comprehensive investment management platform increased • Increase sc
Slide 21: 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 Q1/25 REVENUE Q1/25TRANSACTIONS Q1/25 PROCEEDS RAISED $205.6 M 113 $10.8 bn Total Capital Markets Revenue Revenue by Activity C$ millions, Fiscal years ended
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 driving value for clients in all market environments (Revenue in C$ thousands) F2021 F2022 F2023 F2024 Q1/24 Q1/25 DIFFERENTIATED GLOBAL PLATFORM Revenue $443,444 $341,453 $148,356 $166,649 $40,697
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: Disciplined sector focus
Disciplined sector focus Allows us to provide globally integrated services and expertise throughout market cycles COMBINED ADVISORY & UNDERWRITING REVENUE BY SECTOR ALL GEOGRAPHIES – Q1 2025 ALL CANADA U.S AUSTRALIA UK & EUROPE GEOGRAPHIES 24% of Q1/25 48% of Q1/25 16% of Q1/25 12% of Q1/25 Capital
Slide 25: Global Investment Banking
Global Investment Banking Q1/25 Global Investment Banking Revenue by Sector Unparalleled origination and placement capability Consumer 1% • Q1/25 Investment Banking revenue improved by 121.3% y/y and by 32.5% sequentially • Agility allows us to harness leadership in emerging and high-growth segments
Slide 26: Global Advisory
Global Advisory Q1/25 Advisory Revenue by Sector Increased contributions support margin strength Metals & Mining 3% • Q1/25 Advisory revenue increased 65.7% y/y reflecting improving environment for completions Consumer 7% • Strong track record of ECM activity in core sectors drives complementary gro
Slide 27: Global Distribution and Trading
Global Distribution and Trading Leading independent franchise for best-in-class execution capabilities • Geographically broad and deep relationships covering 2,260+ institutions • Range of multi-asset capabilities (cash equities, fixed income, electronic trading, options, risk arbitrage) • Market ma
Slide 28: 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 29: CG in the Community
CG in the Community Qredkite., S) Schulich JOWEFof Boweres io) Ronald McDonald House Charities J. Australia School of Business ; fr RAINBOW eg SAVE A CHILD'S HEART RAILROAD WOH see seman N FOOD BANK Healthcare | REVOLUTIONIZED te. ¥¢IndigenousWorks Food Ban W Wy Central Okanagan she Canada Food Bank
Slide 30: 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 31: Analyst coverage
Analyst coverage Ventum Capital Cormark Securities Raymond James TD Securities Inc. Jeff Fenwick Markets Stephen Boland Graham Ryding Rob Goff Canaccord Genuity Group Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performa
Slide 32: Financial highlights Q1 Fiscal 2025
Financial highlights Q1 Fiscal 2025 Page 32
Slide 33: Consolidated results: Q1 fiscal 2025
Consolidated results: Q1 fiscal 2025 Improved business mix contributes to earnings stability through market cycles Q/Q Y/Y Y/Y C$ millions (except per share data)1 Q1/25 Q4/24 Q1/24 F 2024 F 2023 Change Change Change Revenue $428,961 $409,278 4.8% $343,443 24.9% $1,479,732 $1,523,348 -2.9% Pre-tax n
Slide 34: Global Wealth Management
Global Wealth Management Q1 Fiscal 2025 Wealth Management revenue by region1 Q/Q Y/Y Y/Y C$ millions, fiscal quarters Q1/25 Q4/24 Change Q1/24 Change F 2024 F 2023 Change $215.9 $197.1 $195.0 $200.7 $191.0 $187.2 Revenue - Canada 90,022 $77,574 16.1% $72,614 24.0% $298,036 $302,164 -1.4% $169.3 $179
Slide 35: Global Capital Markets
Global Capital Markets Q1 Fiscal 2025 Capital Markets Revenue by region C$ millions, fiscal quarters Q/Q Y/Y Y/Y $226.1 (C$ millions except percentages) Q1/25 Q4/24 Change Q1/24 Change F 2024 F 2023 Change $205.7 $196.9 $189.8 $202.9 $205.6 Commissions & Fees $37,987 $43,182 -12.0% $41,048 -7.5% $16
Slide 36: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Q4/24 Q1/25 C$ millions (except for per share amounts and numb er of shares) % Change (As at March 31, 2024) (As at June 30,2024) Strong, liquid balance sheet protects our ability Working Capital1 $852.8 $
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