Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q2 2015 Earnings Presentation
35 slides from Canaccord Genuity's earnings presentation, November 2014
Slide 1: Fiscal second quarter 2015
Investor presentation l November 2014 Fiscal second quarter 2015
Slide 2: 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 regarding Canaccord Genuity’s growth, results of operations, performance and business pr
Slide 3: Canaccord Genuity – a leading, independent global investment bank
Canaccord Genuity – a leading, independent global investment bank Global M&A and Advisory franchise Global Restructuring practice Global Equity and Fixed Income distribution Global wealth management provider TORONTO NEW YORK LONDON BEIJING Publicly listed on the TSX and LSE VANCOUVER BOSTO
Slide 4: Over 55% of revenue generated outside of Canada
Over 55% of revenue generated outside of Canada FISCAL SECOND QUARTER 2015 REVENUE BREAKDOWN C$ million $236.3 million ASIA-PACIFIC & OTHER $250.0 $12.1 5.1% of fiscal Q2/15 revenues More than 55% of our revenue $200.0 generated outside UK & EUROPE $78.7 33.3% of fiscal Q2/15 revenues of Canada $150
Slide 5: Canaccord Genuity in Canada
Canaccord Genuity in Canada An established Canadian capital markets practice Investment Banking Fixed Income 60+ investment bankers 14 professionals and growing Q2/15: Led or co-led 20 Specialist in government and transactions, raising municipal corporate bond C$1.1 billion for clients issua
Slide 6: Canaccord Genuity in the US
Canaccord Genuity in the US US Operation a key contributor to our global platform Investment Banking International Equities 50 investment bankers and 22 professionals trading growing Boston Minneapolis OTC & Pink Sheet securities Q2/15: Led or co-led 3 New York ADR’s & Foreign-Listed Chica
Slide 7: Canaccord Genuity in the UK and Europe
Canaccord Genuity in the UK and Europe A leading UK and European securities and investment banking business Investment Banking UK Debt Markets and 100+ investment bankers Fixed Income Q2/15: Led or co-led 5 19 professionals and growing Dublin transactions, raising Active in UK retail bond ma
Slide 8: Canaccord Genuity in Asia Pacific
Canaccord Genuity in Asia Pacific An elite capital markets practice focused on growth companies Investment Banking Research 40 investment bankers and Beijing 10+ research professionals growing covering over 80 stocks Q2/15: Led or co-lead 13 Energy Hong Kong transactions, raising Metals &
Slide 9: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors FISCAL 2015 YTD, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE CleanTech & Sustainability CleanTech & Other Media & Telecommunications 14% Consumer & Retail Infrastructure Sustainability 2% 1% 7% Investment
Slide 10: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors FISCAL 2015 YTD, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE Metals & Mining CleanTech & Infrastructure CleanTech & Sustainability 8% Financials Sustainability1% 1% Media & Telecommunications 2% Support Se
Slide 11: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors FISCAL 2015 YTD, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE CleanTech & Consumer & Retail Other Sustainability 8% 1% Consumer & Retail 8% - Infrastructure 3% Energy 1% Energy 6% 17% CleanTech & Sustainabi
Slide 12: Global wealth management provider
Global wealth management provider Canaccord Genuity Wealth Management has C$31.7 billion1 of assets under management and administration and operates in six geographies with approximately 300 investment advisors worldwide Clients assets – global (C$ billions)2 Wealth Management operations in six geog
Slide 13: Transitioning to fee-based and managed accounts
Transitioning to fee-based and managed accounts Canada UK and Europe Transactional and wealth management services Wealth Management oriented business targeted to 16 branches across Canada (corporate and agent owned) mass-affluent investors A key distribution channel for capital markets trans
Slide 14: Growing fee-based revenue from wealth management
Growing fee-based revenue from wealth management FEE-BASED REVENUE AS A PERCENTAGE OF WEALTH MANAGEMENT REVENUE – CANADA Canaccord Genuity fiscal quarters 40% 35.8% 34. 3% 31.8% 32.4% 31.6% 29.6% 28.0% 30% 26.2% 25.7% 25.0% 19.4% 19.9% 18.5% 20% 17.0% 15.2% 14.0% 11.8% 12.1% 10% 0% Q1/11 Q2/11 Q3/11
Slide 15: Experienced leadership team
Experienced leadership team Paul Reynolds Brad Kotush President & CEO of Canaccord EVP, Chief Financial Officer of Genuity Group Inc. Canaccord Genuity Group Inc. Phil Evershed Steve Buell Mark Whaling Global Head of Investment Banking Global Head of Research Global Head of Equity Sales and Trading
Slide 16: Strong, diverse corporate board
Strong, diverse corporate board Ten board members; eight independent directors David Kassie Terry Lyons William Eeuwes Chairman of the Board Lead Independent Director Independent Director Co-founder of Genuity Capital Markets; Past Chairman, Northgate Minerals Corp. Senior Vice President and Managin
Slide 17: Financial performance
Financial performance Capital Metrics, Cost Containment, Quarterly Performance, Annual Performance To us there are no foreign markets.™
Slide 18: Solid capital position
Solid capital position Well capitalized for growth opportunities and increased business activity Annual dividend of $0.20 Reviewed and approved by board each quarter Special dividend of $0.05 paid in Q2/15 Well-capitalized for increasing activity levels and capturing growth opportunities S
Slide 19: Continued focus on cost containment
Continued focus on cost containment CANACCORD GENUITY EXPENSES (excluding significant items and incentive compensation) Canaccord Genuity fiscal quarters (C$ millions) 110 Since significantly 105.9 expanding our global 105 Completed acquisition of CSHP business, we have 100 captured cost synergies 9
Slide 20: Q2/15 financial performance
Q2/15 financial performance Revenue Net Income (C$ millions) (C$ millions)1 $254 $246 $230 $231 $236 $218 $29.1 $24.0 $187 $187 $183 $20.5 $21.2 $20.7 $178 $163 $14.1 $15.6 $160 $11.8 $148 $10.6 $5.9 $6.7 $120 $2.1 -$1.7 -$16.3 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14
Slide 21: Fiscal 2014 financial performance
Fiscal 2014 financial performance Revenue Net Income (C$ millions) (C$ millions)1 $804 $797 $114.1 $757 $855 $732 $93.0 $81.2 $79.3 $68.8 $605 $583 $578 $42.0 $25.2 $478 $25.6 -$1.4 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 Diluted EPS ROE (C$)1 $1.94
Slide 22: Appendices
Appendices Canaccord Genuity growth story, Peak earnings potential, Canaccord Genuity – Financial snapshot, Wealth Management – Financial snapshot, Seven key values, Management biographies To us there are no foreign markets.™
Slide 23: Canaccord Genuity's growth story
Canaccord Genuity’s growth story Our goal is to be the pre-eminent global investment dealer focused in the mid-market Executing on corporate development objectives LEADING PLATFORM IN THE UK Built important scale in our US and UK operations No. 6 for number of retained corporate clients Increa
Slide 24: 2007: Peak earnings potential
2007: Peak earnings potential PRO FORMA COMBINED COMPANY PERFORMANCE IN 2007 C$ Millions, pro forma revenue and net income before tax. Approximate – based on CF FY2008, Genuity FY2008, CSHP FY2007 figures*. Canaccord Genuity Capital Markets Collins Stewart Hawkpoint $1,600 $400 $1.45 billion $1,400
Slide 25: Canaccord Genuity: Financial snapshot
Canaccord Genuity: Financial snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding significant items - non-IFRS) FY2014 Q1/151 Q2/151 Gross Revenue1 $615.8 mil $179.2 $170.6 Net Income $94.0 mil $31.2 mil $30.4 mil (before intersegment allocations and income taxes) Net Income (after
Slide 26: Canaccord Genuity Wealth Management: Financial snapshot
Canaccord Genuity Wealth Management: Financial snapshot CANADA¹ : WEALTH MANAGEMENT Key Metrics (C$, Excluding significant items – non IFRS) FY20142 Q1/152 Q2/152 Gross Revenue $111.0 mil $32.4 mil $31.6 mil Net Income $(1.4) mil $2.0 mil $3.1 mil (before intersegment allocations and income taxes) N
Slide 27: Seven values drive our business
Seven values drive our business Seven key values drive Canaccord Genuity employees and management in delivering results to our shareholders, clients and community. They support our unwavering commitment to building lasting client relationships, creating shareholder value and generating innovative id
Slide 28: Executive biographies
Executive biographies Paul Reynolds Brad Kotush President & CEO of Chief Financial Officer of Canaccord Genuity Group Inc. Canaccord Genuity Group Inc. Paul Reynolds was named President of Canaccord Genuity Group Brad Kotush is Executive Vice President and Chief Financial Officer of Inc. (formerly C
Slide 29: Executive biographies
Executive biographies Alexis de Rosnay Dan Daviau Chief Executive Officer President Canaccord Genuity Limited Canaccord Genuity Inc. (UK & Europe) (US capital markets operations) Alexis de Rosnay was appointed Chief Executive Officer of Dan Daviau was appointed President of Canaccord Genuity’s Canac
Slide 30: Executive biographies
Executive biographies Matt Gaasenbeek Marcus Freeman President Chief Executive Officer Canaccord Genuity Corp. Canaccord Genuity (Asia-Pacific) (Canadian capital markets) (Australia, Hong Kong, and China capital markets) Matthew Gaasenbeek has over 22 years of experience in the Marcus is the Managin
Slide 31: Executive biographies
Executive biographies Alex Tan Steve Buell Chief Executive Officer Global Head of Research Canaccord Genuity (Singapore) (Operations in Singapore) Alex Tan joined Canaccord Genuity through the acquisition of Stephen Buell joined Canaccord Genuity in May of 2010 as Collins Stewart in March of 2012, a
Slide 32: Executive biographies
Executive biographies Phil Evershed Mark Whaling Global Head of Investment Banking Global Head of Equity Sales and Trading Mr. Evershed was a Principal and Head of Investment Banking at Mark Whaling serves as Senior Managing Director, Global Genuity Capital Markets, a Canadian investment bank, from
Slide 33: Executive biographies
Executive biographies Barry Goldberg Scott Davidson Managing Director, EVP, Global Head of Corporate Global Head of M&A and Restructuring Development & Strategy Canaccord Genuity Group Inc. Barry is a Managing Director and the Global Head of M&A Scott Davidson is EVP, Global Head of Corporate and Re
Slide 34: Executive biographies
Executive biographies Stuart Raftus David Esfandi President, Chief Executive Officer, Canaccord Genuity Wealth Management (Canada) Canaccord Genuity Wealth Management (UK & Europe) Stuart Raftus joined the firm in January 2014 as President David Esfandi was appointed CEO of Canaccord Genuity of Cana
Slide 35: Disclaimer
Disclaimer This presentation does not constitute a prospectus or admission document relating to Canaccord Genuity, nor does it constitute or form part of any offer or invitation to purchase, sell or subscribe for, or any solicitation of any such offer to purchase, sell or subscribe for, any securiti
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