Igm Financial Inc. · TSX:IGM
Igm Financial — Investor Presentation (March 2021)
18 slides from Igm Financial's investor presentation, Mar 11, 2021
Slide 1: IGM Financial Disclosure Enhancements
IGM Financial Disclosure Enhancements Bringing segment disclosures to “net earnings” line March 11, 2021
Slide 2: Caution Concerning Forward-looking Statements
Caution Concerning Forward-looking Statements Certain statements in this report other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial’s current expectations. Forward-looking statements are provided to assist the reader in unde
Slide 3: Non-IFRS Financial Measures & Additional IFRS Measures
Non-IFRS Financial Measures & Additional IFRS Measures Net earnings available to common shareholders, which is an additional measure in accordance with IFRS, may be subdivided into two components consisting of: • Adjusted net earnings available to common shareholders; and • Other items, which includ
Slide 4: Documents Incorporated By Reference
Documents Incorporated By Reference This summary document and webcast are meant to discuss, not to serve as a substitute for, information included in these documents. The reader is hereby cautioned to refer to the following documents relating to IGM Financial’s results: 1. Documents related to IGM F
Slide 5: Reminder: Segment disclosure changes introduced in October, 2020
Reminder: Segment disclosure changes introduced in October, 2020 are intended to improve transparency into key drivers of each business line and help stakeholders understand and assess components of value. 1• A significant portion of economics reside in IGM’s wealth management businesses, which are
Slide 6: Objectives
Effective Q1, 2021, IGM Financial will be expanding its reporting segment disclosures to go to “net earnings” line from previous “earnings before interest & taxes” line. 1 Retrospective history has been released back to Q1, 2019 Objectives Approach 1. Better reflect the business 1. Debt and interest
Slide 7: Allocating interest expense and income tax to the segments
The change to allocate interest expense and income tax to the segments primarily impacts IG and Mackenzie as IGM’s proportionate share of earnings of Strategic Investments are already after- tax and no long-term debt has been allocated to this segment. Year ended December 31, 2020 ($ millions) Asset
Slide 8: Segment disclosures introduce financial leverage to the operating segments
The enhancements to segment disclosures introduce financial leverage to the operating segments. In this example, an 8% increase in net revenues results in an ~12.5% increase in EBIT and an ~14% increase in net earnings due to fixed operating expenses and interest. Illustrative example to demonstrate
Slide 9: Reminder: IGM Financial 2020 Highlights
Reminder: IGM Financial 2020 Highlights Up 26.3%, or 10.3% excluding IGM AUM&A Growth During 2020 ($B) acquisitions 1) Record high AUM&A of $240B, up ~26% 6.5% 3.7% net investment sales rate return rate 2) Record high net flows of $7.1B, a rate of 3.7% and up meaningfully at all companies 3) Strong
Slide 10: AUM&A is up significantly due to record net sales, market returns and acquisitions
AUM&A is up significantly due to record high net sales, financial market returns and acquisitions. IGM is focused on net earnings growth through continuing business momentum and expense management. Poised for Earnings Revenue generating Moderating expense growth due to growth in AUM&A up significant
Slide 11: 2021 Net Flows Demonstrate Continued Strong Momentum at Mackenzie and IG Wealth Management
2021 Net Flows Demonstrate Continued Strong Momentum at Mackenzie and IG Wealth Management. IG Wealth Management Gross and Net Flows1 ($MM) Net Flows Rate 2 Gross Inflows Gross Outflows Mutual Fund Net Sales Other Dealer Net Flows (Last Twelve Month Trailing, % of Average Assets) 3,4 4 Months of Jan
Slide 12: Implied P/E multiple on IG Wealth and Mackenzie
Using conservative assumptions around the fair value of strategic investments, IGM’s current share price implies a P/E multiple on IG Wealth and Mackenzie Investments of ~8.0x analyst consensus 2021 net earnings Analyst consensus P/E multiple with IGM's estimates of implied P/E multiple for IG Wealt
Slide 13: Q&A
Q&A IGM Financial Disclosure Enhancements
Slide 14: Appendix
Appendix IGM Financial Disclosure Enhancements
Slide 15: 2020 Financial Markets Context
2020 Financial Markets Context: Meaningful financial market returns in last two quarters of 2020 and continuing in 2021. IGM Client Return Index1 Investment Performance Q1/21 at 2.4 2019 Q4/20 2020 Feb 28/21 IGM Client Investment Returns 2 13.0% 5.5% 6.5% 0.8% Equity Markets: 2.2 Canada (S&P / TSX C
Slide 16: Record high net flows at IG Wealth and momentum heading into 2021
Record high net flows at IG Wealth and lots of momentum heading into 2021 IG Wealth Management Gross and Net Flows1 ($MM) IG Wealth Management Flows Gross Inflows Gross Outflows Net Flows (Last Twelve Month Trailing, $B) Months of January & February: 2,425 Record 1,906 2,010 1,694 1,982 high Net Flo
Slide 17: Mackenzie is gaining significant market share and achieving record high net sales
Mackenzie is gaining significant market share and achieving record high net sales that continue to improve Mackenzie Investment Fund Flows1 ($MM) Mackenzie Investment Funds Net Flows1 Gross Sales Redemptions Mutual Fund Net Sales ETF Net Flows (Last Twelve Month Trailing, $MM) Months of January & Fe
Slide 18: 2021 is a year of significant business momentum for Mackenzie retail
2021 is a year of significant business momentum for Mackenzie retail Mackenzie Retail Investment Fund Net Sales ($B) Last twelve month trailing Quarterly Mutual Fund Net Sales Mutual Fund Gross Sales Investment Fund Net Sales Mutual Fund Net Sales #1 Rated Sales 6,000 ETF Net Sales +53% Organization