Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (February 2022)
35 slides from Canaccord Genuity's investor presentation, February 2022
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation FEBRUARY 2022
Slide 2: Forward looking statements
Forward looking statements Forward Looking Statements: 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 a
Slide 3: Driven to deliver, engage, grow and increase value
/ Driven to deliver superior client outcomes / Driven to strengthen employee engagement / Driven to grow our profitability / Driven to increase shareholder value
Slide 4: About Canaccord Genuity Group Inc.
About Canaccord Genuity Group Inc. Driven to deliver superior outcomes for mid-market companies and investors $1.5 bn $102 bn Fiscal YTD REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment banking, $49 bn 494 helping individual investors, privat
Slide 5: Financial Highlights
Financial Highlights Broad capabilities drive revenue and earnings stability through market cycles Client Pre-tax Net Diluted Revenue1 Assets Income1,2 EPS1 Strong capital markets activity levels with Q3 Fiscal 2022 $550.8 M $101.9 bn $113.4 M $0.69 increased Advisory 3 months ended +3.3% y/y +19.6%
Slide 6: Continued strong results on all key measures
Continued strong results on all key measures Strong contributions from all businesses and geographies Revenue1 - C$ millions Pre-tax Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 9M/21 and 9M/22 ended December 31 9M/21 and 9M/22 ended December 31 $113 Expanding
Slide 7: Positioned for long-term success
Positioned for long-term success Building upon our strategy of long-term value creation Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 - 2018 Fiscal 2019 to 2021 Fiscal 2022 and bey
Slide 8: Transformed our business mix to provide stability through market cycles
Transformed our business mix to provide stability through market cycles Broad-based revenue and net income contributions without concentration in any sector or region Q3/22 Firmwide Revenue by Division Firmwide revenue1 C$ millions, fiscal years ended March 31 9M/21 and 9M/22 ended December 31 66% C
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 C$ millions and %, fiscal years ended March 31 C$ fiscal years ended March 31 9M/21 and 9M/22 ended Decembe
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 9M/21 and 9M/22 ended December 31 9M/21 and 9M/22 ended December 31 20.8% 19.4% 28.4% 29.6%
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) C$, Fiscal years ended March 31 Fiscal years ended March 31 20% Fiscal 2022 year-to date
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 Q3/22 CLIENT ASSETS Q3/22 REVENUE Q3/22 PRE-TAX NET INCOME2 Q3/22 PRE-TAX PROFIT MARGIN2 $102 bn $185 M $39 M 21% +19.6 % y/y + 2.4% y/y + 0.5% y/y - 0.4p.p y/y Total Client Assets Total Wealth Management Revenu
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 TRANSFORMATIONAL A business model centred £3.8 bn in client assets, 14,000+ private clients, £170 m in client Funds & accounts managed by
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 15% y/y to C$59.4 bn • Drive organic growth and margin expansion • Cross fertilization of wealth planning and investment management Q3/22 pre-t
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 28% y/y to $37.4 bn; Average AUA per IA team grew 26% y/y to $254M • Continue to advance recruiting , client experience and organic
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 Q3/22 ended December 31 5-year CAGR Net 18.8% contribution 30% $19.0
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 21% y/y • Continue to build on the CGWM brand to C$5.1bn • Increase scale through targeted recruiting oppor
Slide 20: CG Global Capital Markets
CG Global Capital Markets: A powerful mid-market competitor Diverse revenue streams provide stability and profitability through market cycles Q3/22 PROCEEDS RAISED Q3/22 REVENUE Q3/22 PRE-TAX NET INCOME1 Q3/22 PRE-TAX PROFIT MARGIN1 $13 bn $362 M $94 M 26% - 32.8% y/y + 3.7% y/y + 1.4% y/y - 0.6p.p.
Slide 21: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of supporting increased activity levels over a relatively fixed cost base (Revenue in C$ thousands) F2017 F2018 F2019 F2020 F2021 9M/21 9M/22 Revenue $155,411 $216,106 $260,665 $204,636 $443,444 $244,0
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 while maintaining strong capability in historic areas of strength Total Proceeds Rai
Slide 24: Global Advisory
Global Advisory Record advisory activities offsetting ECM declines and driving margin growth • Strong track record in ECM drives complementary growth in Advisory business typically counter- 9M/22 Investment Banking & cyclical to new issue business Advisory Revenue by Sector Technology 50% • Q3 Adv
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 • Range of multi-asset capabilities (cash equities, fixed income, electronic trading, options, risk arbitrage) • Market ma
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 ‘The Greater Boston FOOD BANK. "eotng antrn Manoachnats =<] NHS FOOD BANK Oo f dhe é Schulich Ronald Mepgnald Food a FOOD BANK barge fools School of Business . Australia Canada Fon NEW YORK CITY RAINBOW § second harvest RAILROAD HEARTLAND we ee o CH i Capitalize National HOSPITAL
Slide 28: (TSX:CF): 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 Q3 Fiscal 2022
Financial highlights Q3 Fiscal 2022 Page 30
Slide 31: Fiscal third quarter 2022 results
Fiscal third quarter 2022 results1 Improved business mix contributing to earnings stability and growth • Q3/22 quarterly revenue of $550.8 million, up 3% year-over-year Q3/22 Q3/21 Y/Y Change 9M 2022 9M 2021 Y/Y Change C$ thousands (except per share data) Revenue $550,817 $533,077 3.3% $1,549,809 $1
Slide 32: Global Capital Markets Q3 Fiscal 2022
Global Capital Markets Q3 Fiscal 2022 Capital Markets Revenue by region C$ millions, Fiscal quarters $487.0 (C$ thousands except Q/Q Y/Y Y/Y Q3/22 Q2/22 Q3/21 9M 2022 9M 2021 $348.9 $361.9 percentages) Change Change Change $324.2 $304.9 $234.9 $241.5 Commissions & Fees $44,192 $41,966 5.3% $51,400 -
Slide 33: Global Wealth Management Q3 Fiscal 2022
Global Wealth Management Q3 Fiscal 2022 Wealth Management revenue by region2 C$ millions, Fiscal quarters $199.2 $195.0 (C$ thousands except Q/Q Y/Y Y/Y $184.9 Q3/22 Q2/22 Q3/21 9M 2022 9M 2021 $180.5 percentages) Change Change Change $166.2 $146.0 $137.9 $137.9 $129.7 $128.4 Revenue - Canada $82,58
Slide 34: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Q2/22 Q3/22 % Change (As at September 30, 2021) (As at December 31, 2021) C$ millions (except for per share amounts and number of sh
Slide 35: Non-IFRS measures
Non-IFRS measures Non- IFRS Measures: Certain non-IFRS measures are utilized by the Company as measures of financial performance. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. No
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