Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q4 2017 Earnings Presentation
22 slides from Canaccord Genuity's earnings presentation, June 2017
Slide 1: Fourth Quarter and Fiscal 2017 Investor Presentation
Fourth Quarter and Fiscal 2017 INVESTOR PRESENTATION | June 2017 To us there are no foreign markets.™
Slide 2: How We Are Creating Shareholder Value
How We Are Creating Shareholder Value Drive a strong culture Expand wealth management Improve stability Continue to build a stable and scalable Remain agile wealth management business and a focused and independent mid- Strong focus on cost market containment investment bank Create a dominant mid-mar
Slide 3: (TSX:CF): An Excellent Investment Proposition
(TSX:CF): An Excellent Investment Proposition Committed to driving value for clients, employees and shareholders Shares are attractively valued Trading at discount to book value; significant portion of intangible assets written off last year Trade at material discount to sum-of-the-parts Divid
Slide 4: 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 5: Financial Overview: Fourth quarter and Fiscal 2017
Financial Overview: Fourth quarter and Fiscal 2017 $879.5M $38.6B $489M $11.6M Revenue for Fiscal 2017 Assets under administration Working capital Annual savings and management in G&A, comms/technology expenses Stronger performances Delivering on our strategy to Well capitalized for continued Sustai
Slide 6: 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 7: Expand wealth management
Expand wealth management Positioned for margin expansion and enhanced earnings as we increase scale across wealth management UK & Europe wealth management Well positioned for consolidation: operational and technology platform facilitating growth and cost efficiencies Continue to assess acquisiti
Slide 8: 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 Lean, focused platform where all businesses are able to volat
Slide 9: Remain Agile
Remain Agile Independence allows us to adjust our business mix as client demands evolve Capital markets revenues by region Capital markets revenues by activity Fiscal 2017 Fiscal 2017 FOCUSED WHERE WE CAN BE MOST RELEVANT TO OUR CLIENTS United States Canada Commissions Investment AND PROVIDE SUPERIO
Slide 10: Strong Focus on Cost Containment
Strong Focus on Cost Containment Strong focus on cost containment ACHIEVED OPPORTUNITIES Significant reductions in G&A, communications and technology Additional G&A savings anticipated as measures take effect costs through F2018 Net headcount reduction of 158 since Q3/16 restructuring Global
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 Top Canadian underwriter by number of Strongest revenue contributor in Fiscal 2017 transactions over last 5 fiscal years1 Strengthene
Slide 12: All Businesses Contributed to Fiscal 2017 Profitability
All Businesses Contributed to Fiscal 2017 Profitability F2015 F2016 F2017 Q4/16 Q4/17 Capital Markets Canada Revenue $204,585 $131,399 $155,411 $39,106 $46,243 Net income (loss)1 $44,861 $10,273 $24,322 $1,411 $10,056 Pre-tax profit margin1 21.9% 7.8% 15.7% 3.6% 21.7% US Revenue $202,972 $217,411 $2
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 • President & CEO compensation has large share-based element Defined and well articulated performance objectives
Slide 14: (TSX:CF): 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: 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 16: Canaccord Genuity Group Inc.: Financial Snapshot
Canaccord Genuity Group Inc.: Financial Snapshot CANACCORD GENUITY GROUP INC.: GLOBAL MEASURES Key Metrics F2015 F2016 F2017 Q4/16 Q4/17 Gross Revenue $880,763 $787,805 $879,546 $200,912 $271,656 Total Expenses1 $827,458 $793,862 $817,096 $204,257 $232,161 Incentive Compensation $455,480 $417,876 $4
Slide 17: 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 Closed $60 million privat
Slide 18: Q4/17 Financial Performance
Q4/17 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $272 $32.7 $254 $29.1 $230 $246 $236 $231 $232 $208 $24.0 $218 $214 $20.5 $21.2 $20.7 $206 $15.6 $187 $187 $191 $201 $194 $183 $166 $182 $11.8 $13.3 $163 $8.8 $8.1 $6.3 $5.9 $6.7 $1.9 $2.0 ($2.1) ($16.3) ($14.3) ($19.1) Dilu
Slide 19: Fiscal 2017 Financial Performance
Fiscal 2017 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) $880.8 $879.5 $803.6 $797.1 $855.2 $114.1 $756.9 $787.8 $731.5 $93.0 $604.9 $81.2 $79.3 $577.5 $68.8 $477.7 $49.2 $42.0 $39.3 $25.6 $25.2 ($6.0) ($1.4) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY06 FY07 F
Slide 20: Canaccord Genuity Wealth Management: Financial Snapshot
Canaccord Genuity Wealth Management: Financial Snapshot Canada¹: Wealth Management Key Metrics FY2017 Q4/16 Q3/17 Q4/17 (C$, Excluding Significant Items)2 Gross Revenue $132.3M $25.5M $32.8M $40.3M Income (Loss) (before intersegment allocations and income taxes) $17.5M $2.3M $3.9M $5.4M Income (Loss
Slide 21: Canaccord Genuity Wealth Management
Canaccord Genuity Wealth Management Growing assets and contributions from fee-based business UK & Europe Wealth Management Canada Wealth Management Fee-based Revenue as a Percentage of Wealth Management Revenue Fee-based Revenue as a Percentage of Wealth Management Revenue *percentage of total reven
Slide 22: Canaccord Genuity Global Capital Markets: Financial Snapshot
Canaccord Genuity Global Capital Markets: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding Significant FY2017 Q4/161 Q3/171 Q4/171 Items - Non-IFRS) Gross Revenue1,2 $598.4 mil $136.7 mil $137.3 mil $193.5 mil Income (Loss) (before intersegment allocations and $64.6 m
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