Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q1 2019 Earnings Presentation
23 slides from Canaccord Genuity's earnings presentation, August 2018
Slide 1: Fiscal First Quarter 2019
Fiscal First Quarter 2019 INVESTOR PRESENTATION | AUGUST 2018 To us there are no foreign markets.™
Slide 2: 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 and similar statements concer
Slide 3: How We Are Creating Shareholder Value
How We Are Creating Shareholder Value Strong culture Expanding wealth management Improving stability Continue to build a stable and scalable Remaining agile wealth management business and a focused and independent mid- Disciplined expense market management investment bank Creating a dominant mid-mar
Slide 4: An Excellent Investment Proposition
(TSX:CF): An Excellent Investment Proposition Committed to driving value for clients, employees and shareholders Shares are attractively valued Opportunity to participate in market for emerging high-growth sectors Renewed dividend policy in June 2017 Buyback opportunities under NCIB available
Slide 5: Overview of Canaccord Genuity Group Inc.
Overview of Canaccord Genuity Group Inc. A leading independent financial services firm with a global presence HOW WE WEALTH MANAGEMENT DIFFERENTIATE CAPITAL MARKETS Comprehensive wealth management Global platform provides Provides leading investment banking, opportunities to benefit from activity eq
Slide 6: Financial Overview
Financial Overview: $274.1 M $66.2 B $25.0 M $0.19 Record first quarter Assets under administration Q119 pre-tax Q119 diluted earnings per revenue and management net income1 common share1 Stronger performances Executing on our strategy to Improved business mix is Driving stronger returns for across
Slide 7: A Strong Culture to Drive Our Success
A Strong Culture to Drive Our Success We perform to our full potential in any market How we interact with each other is critical to our culture. As a global investment bank, Connect People to WE ARE we differentiate ourselves every day by providing a truly global perspective, which by its Performanc
Slide 8: Expanding Global Wealth Management
Expanding Global Wealth Management Positioned for margin expansion and enhanced earnings as we increase scale across wealth management UK & Europe wealth management Canada wealth management London | Jersey | Guernsey | Isle of Man Vancouver | Toronto |Calgary | Montreal Blackpool | Lancaster| Llandu
Slide 9: Improve Stability
Improve Stability Stabilizing our business for performance in all market cycles GLOBAL WEALTH MANAGEMENT INCREASING PREDICTABILITY GLOBAL CAPITAL MARKETS REDUCING VOLATILITY Recurring revenue from fee-based assets offsets inherent volatility of capital markets Lean, focused platform where al
Slide 10: Remain Agile
Remain Agile Independence allows us to adjust our business mix and stay competitive as client demands evolve Capital markets revenues by region Capital markets revenues by activity Q1 2019 Q1 2019 FOCUSED WHERE WE CAN BE MOST RELEVANT TO OUR CLIENTS Commissions AND PROVIDE SUPERIOR REVENUE and fees
Slide 11: Dominant Mid-market Capital Markets Competitor
Dominant Mid-market Capital Markets Competitor Leverage competitive strengths across businesses and geographies to drive stronger outcomes for clients CANADA US Dominant independent investment bank, raised ~70% more than closest Further alignment of core teams to provide a more intensive focus o
Slide 12: Global operating businesses
Global operating businesses F2016 F2017 F2018 Q1/18 Q1/19 Wealth Management Canada Revenue $108,208 $132,292 $168,882 $36,918 $46,789 Pre-tax net income (loss)1 $(7,490) $1,964 $20,190 $3,164 $5,158 Pre-tax profit margin1 (6.9)% 1.5% 12.0% 8.6% 11.0% UK & Europe Revenue $138,359 $134,819 $201,383 $3
Slide 13: Complete alignment with Shareholders
Complete alignment with Shareholders Significant equity participation by Executives, Employees and Board of Directors Compensation Linked to Successful Delivery of Strategic Objectives • Executive compensation has large performance-based element Defined and well articulated performance objectives
Slide 14: An Excellent Investment Proposition
(TSX:CF): An Excellent Investment Proposition Committed to driving value for clients, employees and shareholders Shares are attractively valued Driving earnings power by transforming business mix and growing global wealth management Creating a more predictable business with consistency of earnings I
Slide 15: Analyst Coverage
Analyst Coverage Cormark Securities TD Securities Inc. Jeff Fenwick Graham Ryding 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 analysts are theirs alone and do not
Slide 16: Financial Performance
Financial Performance Capital Metrics, Quarterly Performance, Annual Performance Canaccord Genuity – Financial snapshot Wealth Management – Financial snapshot To us there are no foreign markets.™
Slide 17: Canaccord Genuity Group Inc.: Financial Snapshot
Canaccord Genuity Group Inc.: Financial Snapshot CANACCORD GENUITY GROUP INC.: GLOBAL MEASURES Key Metrics F2016 F2017 F2018 Q1/18 Q1/19 Gross Revenue $787,805 $878,353 $1,022,877 $199,808 $274,123 Total Expenses1 $793,862 $817,096 $912,270 $197,044 $244,774 Incentive Compensation1 $417,876 $454,998
Slide 18: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in key priorities Able to support increasing business activities and invest in opportunities to capture additional market share Strong, liquid balance sheet Prepared for evolving regulatory environment (In C$ millions, except for
Slide 19: Q1/19 Financial Performance
Q1/19 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) 322 309 $39.2 274 $37.3 272 $29.1 $32.7 254 $25.0 246 236 232 $24.0 231 $21.2 214 206 208 $20.7 191 201 194 200 183 166 182 192 $13.3 $6.7 $8.8 $8.1 $6.3 $1.9 $2.0 $3.5 $1.6 ($2.1) ($14.3) ($19.1) Diluted EPS1 Book Value (C$
Slide 20: Fiscal 2018 Financial Performance
Fiscal 2018 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) 1,022.9 114.1 855.2 880.8 879.5 803.6 797.1 787.8 79.3 81.7 731.5 68.8 577.5 604.9 49.2 477.7 42.0 39.3 25.2 25.6 (1.4) (6.0) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY
Slide 21: Canaccord Genuity Wealth Management: Financial Snapshot
Canaccord Genuity Wealth Management: Financial Snapshot Canada¹: Wealth Management Key Metrics FY2018 Q1/18 Q4/18 Q1/19 (C$) Gross Revenue $168.9M $36.9 M $51.5 M $46.8 M Income (Loss) 2 (after intersegment allocations and before income taxes) $20.2 M $3.2M $8.5 M $5.2 M Assets under Administration
Slide 22: Canaccord Genuity Wealth Management
Canaccord Genuity Wealth Management Growing assets and contributions from fee-based business UK & Europe Wealth Management Canada Wealth Management Fee-based Revenue as a Percentage of Wealth Management Revenue Fee-based Revenue as a Percentage of Wealth Management Revenue *percentage of total reven
Slide 23: Canaccord Genuity Global Capital Markets: Financial Snapshot
Canaccord Genuity Global Capital Markets: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$) FY2018 Q1/181 Q4/181 Q1/191 Gross Revenue1,2 $637.6 M $121.8 M $200.7 M $156.2 M Income (Loss)3 (after intersegment allocations and $62.5 M $(6.4) M $36.0 M $13.2 M before income taxes) D
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