Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (June 2021)
34 slides from Canaccord Genuity's investor presentation, June 2021
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation JUNE 2021
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 Page 3
Slide 4: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $2.0 bn $88.8 bn ANNUAL REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment banking, $86 bn 713 helping individual investors, private c
Slide 5: Financial Highlights
Financial Highlights Record quarterly and full year results on all key measures Client Pre-tax Net Diluted Revenue Assets Income1,2 EPS1 Fiscal 2021 was an exceptionally strong Q4 Fiscal 2021 $692.3 M $88.8 bn $183.2 M $1.20 year for capital markets 3 months ended March 31 activities in key CG +117%
Slide 6: Record results on all key measures
Record results on all key measures Extraordinary backdrop for capital raising supported record performance in Q4 and F2021 Revenue - C$ millions Pre-tax Net Income2,3 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 $386 $1,993 $692 $183 Expanding into our core strengths $533 $1
Slide 7: Positioned for long-term success
Positioned for long-term success Building upon our strategy of long-term value creation Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 - 2018 Fiscal 2019 to 2021 Fiscal 2022 and bey
Slide 8: Transformed our business mix to provide stability through market cycles
Transformed our business mix to provide stability through market cycles Broad-based revenue and net income contributions without concentration in any sector or region Fiscal 2021 Firmwide Revenue by Division Firmwide revenue C$ millions, fiscal years ended March 31 66% Capital $1,993 Markets 34% Wea
Slide 9: We have steadily and sustainably improved earnings stability
We have steadily and sustainably improved earnings stability A lower risk business model with growing contributions from wealth management Pre-tax net income and profit margins1,2 Diluted EPS1 % and C$ millions, fiscal years ended March 31 C$ fiscal years ended March 31 $386.1 $2.48 19% 10% 11% 11%
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 31.5% 29.6% 19.4% 28.0% 28.4% 19.0% 10.8% 11.4% 10.1% 7.0% 2017 2018 2019 2020 2021 2017 20
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) Fiscal years ended March 31 Fiscal years ended March 31 Fiscal 2021 capital deployment i
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 CLIENT ASSETS REVENUE PRE-TAX NET INCOME2 PRE-TAX PROFIT MARGIN2 $88.8 bn $664 M $135 M 20% + 46% y/y + 30% y/y + 69% y/y + 470 bps y/y Total client assets – C$, billions Pre-tax net income and profit margin Tot
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 31% y/y to C$52bn • Drive organic growth and margin expansion • Cross fertilization of wealth planning and investment management Fiscal 2021 pr
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 75% y/y to $32bn • Continue to advance recruiting , client experience and organic growth initiatives Average AUA per IA team grew
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 5-year CAGR Net 18.8% contribution 30% $15.2 bn in client assets adde
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 76% y/y to C$4.2bn • Continue to build on the CGWM brand Increasingly positive contributor to pre-tax net
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 F2021 PROCEEDS RAISED RECORD F2021 REVENUE PRE-TAX NET INCOME1 PRE-TAX PROFIT MARGIN1 $86 bn $1.3 bn $325 M 24.8% + 66% y/y + 90% y/y + 444% y/y + 1,600 bps y
Slide 21: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of supporting increased activity levels over a relatively fixed cost base (Revenue in C$ millions) F2017 F2018 F2019 F2020 F2021 Revenue $155,411 $216,106 $260,665 $204,636 $443,444 DIFFERENTIATED GLOB
Slide 22: CG Global Capital Markets
CG Global Capital Markets Disciplined mid-market focus, differentiated by scale, global capability, and stability Integrated capabilities provide unparalleled Disciplined focus in key growth sectors of the Deep regional expertise, differentiated by aftermarket support and facilitate lasting global e
Slide 23: Global Investment Banking
Global Investment Banking Unparalleled origination and placement capability Established leadership as a global midmarket investment bank • Agility allows us to harness leadership in emerging and high-growth segments Total Proceeds Raised C$ billions, Fiscal years ended March 31 while maintaining str
Slide 24: Global Advisory
Global Advisory Increased contributions driving margin growth Fiscal 2021 Investment Banking & Advisory Revenue by Sector • Strong track record of ECM activity drives complementary growth in Technology 25% Advisory business Life Sciences 29% Metals & Mining 19% • Q4 Advisory revenue increased 32% y/
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 • Execution services in 47 markets worldwide with a range of multi-asset capabilities (cash equities, fixed income, electr
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 y ‘The Greater Boston ec] f NHS ea A the S powerot < jumanity \x. Schulich School of Business ¢) AY Ronald Meponald oe FOOD BANK black girls hocks RAINBOW second harvest RAILROAD HEARTLAND WCH] Zc W@W Ze National . (PY usiBHatSSRAion KS for KIDS SF-MARIN Q Breast Cancer Pas inato
Slide 28: 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 Q4 and Fiscal 2021 Page 30
Slide 31: Fiscal fourth quarter and fiscal 2021 results
Fiscal fourth quarter and fiscal 2021 results Improved business mix contributing to earnings stability and growth • Record quarterly revenue of $692 Y/Y million, up 117% year-over-year Q4/21 Q4/20 F2021 F2020 Y/Y Change C$ millions (except per share data) Change Revenue $692,326 $319,648 116.6% $1,9
Slide 32: Global Capital Markets Q4 and Fiscal 2021
Global Capital Markets Q4 and Fiscal 2021 Capital Markets Revenue by region C$ millions, Fiscal quarters $487.0 (C$ millions except Q/Q Y/Y Y/Y Q4/21 Q3/21 Q4/20 F2021 F2020 $348.9 percentages) Change Change Change $234.9 $241.5 Commissions & Fees $62,516 $51,400 21.6% $45,624 37.0% $212,431 $152,48
Slide 33: Global Wealth Management Q4 and Fiscal 2021
Global Wealth Management Q4 and Fiscal 2021 Wealth Management revenue by region1 C$ millions, Fiscal quarters $199.2 (C$ millions except Q/Q Y/Y Y/Y Q4/21 Q3/21 Q4/20 F2021 F2020 $180.5 percentages) Change Change Change $146.0 $137.9 $137.9 Revenue - Canada $107,000 $92,741 15.3% $56,733 88.6% $324,
Slide 34: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Q3/21 Q4/21 % Change (As at December 31, 2020) (As at March 31, 2021) C$ millions (except for per share amounts and number of shares
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