Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Merger or Acquisition (March 2010)
16 slides from Canaccord Genuity's merger presentation, March 2010
Slide 1: Canaccord Genuity Investor Presentation March 2010
Canaccord Genuity INVESTOR PRESENTATION MARCH 2010
Slide 2: Forward Looking Statements
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’s growth, results of operations, performance and business prospects and opportunities.
Slide 3: Strategic Rationale
Strategic Rationale A gold standard Material cost synergies independent investment Leading independent combined with excellent bank – client-focused and equity research revenue enhancement values-driven opportunities Combines a powerhouse in Minimal overlap in equities with a market client relations
Slide 4: Strategic Rationale – The Global M&A Cycle
Strategic Rationale – The Global M&A Cycle • M&A cycle currently at low point, with slow growth economy driving an acceleration of advisory business over the near to longer term • Counter-cyclical investment in M&A capacity, adding complementary advisory DNA to our transactional expertise ANNOUNCED
Slide 5: Strategic Rationale – Seizing the Opportunity
Strategic Rationale – Seizing the Opportunity • Creation of Canaccord Genuity capitalizes on secular trends and macro themes, including: – Client demand for full-service independent dealers – Scarcity of independent advice for clients, bias of bank offerings – Opportunity for global mid to large cap
Slide 6: Introducing Canaccord Genuity
Introducing • Both companies have experienced significant success, and combining forces positions Canaccord Genuity for its next level of growth • Gold standard 1. World-class advisory and transaction capabilities in our focus sectors 2. Proven global distribution in equities 3. Highly-regarded, act
Slide 7: Comprehensive Platform Serves Entire Client Life-cycle
Comprehensive Platform Serves Entire Client Life-cycle • Canaccord Genuity can provide world-class comprehensive services across the growth life-cycle to our clients, who previously chose one firm for equity underwriting and another for advisory services IPOs and Trading and Equity After Market Unde
Slide 8: Shared Strengths
Shared Strengths CANACCORD GENUITY CANACCORD GENUITY ADVANTAGE ADAMS Committed to excellence in client service Client-focused culture 9 9 throughout the entire client lifecycle Credible advice free of conflicts experienced Independent perspective 9 9 with banks Top ranked independent analysts with d
Slide 9: Complementary Differences
Complementary Differences CANACCORD GENUITY CANACCORD GENUITY ADVANTAGE ADAMS Underwriting powerhouse 9 Leveraging proven global distribution network Gold standard advisory capability 9 Providing comprehensive services Leading independent restructuring to corporate clients as they grow firm 9 Extens
Slide 10: Minimal Overlap in Clients and Revenue
Minimal Overlap in Clients and Revenue M&A LEAGUE TABLES – CANADIAN INDEPENDENTS(1) • Advisory – Distinct M&A practices with Canaccord # Firm Value ($B) # Deals and Genuity combining a small-to-mid and large 1 Combined Company $37.1 99 cap focus 1 Genuity 25.9 66 2 GMP Securities 19.6 67 3 Canaccord
Slide 11: Proposed Transaction Terms and Valuation
Proposed Transaction Terms and Valuation • Canaccord will acquire 100% of Genuity in exchange for: – $30 mm cash plus post-closing adjustment for net working capital – 26,500,000 Canaccord shares • Values Genuity at $285.9 million at current Canaccord share trading price • All Genuity partners will
Slide 12: Canaccord Genuity Economics
Canaccord Genuity Economics • Transaction is materially accretive across multiple periods, including the challenging environment of the early part of 2009 COMBINED ECONOMICS (1) (1) Trailing 12 Months Trailing Six Months (2) (3) (Al l figures in C$ millions, except per share amounts) Canaccord Genui
Slide 13: Pro Forma
Pro Forma • Pro forma this transaction, new Canaccord multiple to book value and earnings is significantly lower than its direct comparable GMP IMPLIED VALUATION C anac c o rd Im plied P ro F o rm a G MP (1) (2) (3) A t-Market G enuity A t-Market C urrent C anac c o rd S hare P ric e $8.60 $8.60 $13
Slide 14: Synergies
Synergies • All cost synergies are demonstrable and quantifiable • Accretion/dilution excludes projected revenue synergies, which are expected to be material even net of cannibalization/anti-synergies HEADCOUNT Approximately $2.2 million BACK OFFICE Approximately $1 million NON-COMPENSATION Approxim
Slide 15: Strong Rationale for the Combination
Strong Rationale for the Combination Canaccord’s distribution platform, through its global sales and trading operation and wealth EQUITY management business, can be leveraged by Genuity’s corporate client base to provide UNDERWRITING seamless financing options. Genuity’s advisory and restructuring e
Slide 16: Paul Reynolds and David Kassie
Paul Reynolds, President and CEO, Canaccord Financial Inc. David Kassie, Chairman and CEO, Genuity Capital Markets
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