Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Investor Presentation (June 2024)
37 slides from Canaccord Genuity's investor presentation, June 2024
Slide 1: Canaccord Genuity Group Inc. Investor Presentation
Canaccord Genuity Group Inc. Investor Presentation June 2024
Slide 2: Forward looking statements and non-IFRS measures
Forward looking statements and non-IFRS measures 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 and sim
Slide 3: Driven to deliver superior client outcomes
/ 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 $104 bn REVENUE1 CLIENT ASSETS Comprehensive wealth management solutions Leading mid-market provider of investment $17 bn 204 helping individual investors, private clients and bankin
Slide 5: Financial Highlights
Financial Highlights Continued deceleration in global markets impacted financial performance in Q4 and Fiscal 2024 Client Pre-tax Net Diluted Revenue1 Assets Income1,2 EPS1 Q4 Fiscal 2024 $409.2 M $103.9 bn $39.1 M $0.15 3 months ended -4.9% y/y +8.0% y/y +139.2 % y/y3 +114% y/y3 March 31 Contributi
Slide 6: Defensive revenue mix provides downside protection
Defensive revenue mix provides downside protection Investments to increase contributions from Wealth Management and Advisory helped reduce our reliance on underwriting activity Revenue1 - C$ millions Pre-tax Net Income1,2 - C$ millions Fiscal years ended March 31 Fiscal years ended March 31 Going de
Slide 7: Positioned for long-term success
Positioned for long-term success We use challenging periods productively to seize opportunities for targeted and disciplined growth Diversify Restructure & Refocus Balance business mix Sustainable, profitable growth Expand on our proven strengths Fiscal 2010 to 2014 Fiscal 2015 - 2016 Fiscal 2017 -
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 Firmwide revenue1 Fiscal 2024 Firmwide Revenue by Operating Division C$ millions, fiscal years ended March 31 53% 47% Wealth Capital
Slide 9: Established track record of steadily and sustainably improving earnings stability
Established track record of steadily and sustainably improving earnings stability We have spent years shaping our business to deliver predictable performance in uncertain times Pre-tax net income and profit margins1,2 Diluted EPS1 % and C$ millions, fiscal years ended March 31 C$ fiscal years ended
Slide 10: Managing expenses carefully in a lower revenue environment
Managing expenses carefully in a lower revenue environment Focused on improving our operating leverage to support profitability through market cycles Non-compensation expenses as a % of revenue1 Pre-tax profit margin1 Fiscal years ended March 31 Fiscal years ended March 31 33.0% 20.5% 29.6% 30.2% 19
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 Q4/24 quarterly common share dividend of $0.085 reflect strength of wealth management division Common Share Dividends Common shares outstanding (Average di
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: Increased employee ownership supports our partnership culture
Increased employee ownership supports our partnership culture Promotes alignment between our business, clients, and fellow shareholders Independently governed Limited Partnership to be owned by employees • Acquired approximately 9.7% of outstanding CF common shares in March 2024 • Permanent capital
Slide 14: Global Wealth Management
Global Wealth Management An important source of earnings power and stability in difficult markets F2024 CLIENT ASSETS F2024 REVENUE F2024 PRE-TAX NET INCOME1 F2024 PRE-TAX PROFIT MARGIN2 $104 bn $773 M $140 M 18% Total Client Assets Total Wealth Management Revenue Pre-tax net income (C$ millions) an
Slide 15: CG Global Wealth Management: Strengthening margins and earnings contributions
CG Global Wealth Management: Strengthening margins and earnings contributions Proven track record of creating substantial value in this segment INVESTING WITH DISCIPLINE TO ADVANCE OUR LONG-TERM EARNINGS POTENTIAL (Revenue in C$ thousands, AUA/AUM in C$ millions) F2020 F2021 F2022 F2023 F2024 Invest
Slide 16: 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 A business model TRANSFORMATIONAL Funds & accounts managed TRANSFORMATIONAL £3.8 bn in client by HPS investment Partners assets, 14,000+ private clients, £
Slide 17: 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 Cloud-based client communication tool Financial planning software Dependencies) (UMA)
Slide 18: CG Wealth Management: UK & Crown Dependencies
CG Wealth Management: UK & Crown Dependencies A top-10 wealth manager in an industry where scale matters Highlights Strategic Priorities Q4 revenue increased 1.7% y/y to $105M , fiscal 2024 revenue increased 19.7% to $411.5M • Drive organic growth and margin expansion • Cross fertilization of weal
Slide 19: CG Wealth Management: Canada
CG Wealth Management: Canada Building on our success as the leading independent wealth manager in the country Highlights Strategic Priorities • Continue to advance recruiting , client experience and organic growth initiatives Higher interest rates positively impact interest revenue and contribute
Slide 20: 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 9M/24 ended December 31 Net contribution 30% $23 bn in client assets
Slide 21: CG Wealth Management: Australia
CG Wealth Management: Australia Growing CG’s national footprint in Australia Highlights Strategic Priorities Total client assets in comprehensive investment management platform increased • Continue to build upon the CGWM brand in Australia 18.4% y/y to record C$6.4bn • Increase scale through targe
Slide 22: CG Global Capital Markets
CG Global Capital Markets: A powerful mid-market competitor Diverse revenue streams provide stability and profitability through market cycles FISCAL 2024 REVENUE FISCAL 2024 TRANSACTIONS FISCAL 2024 PROCEEDS RAISED $683 M 204 $17 bn Total Capital Markets Revenue Revenue by Activity C$ millions, Fisc
Slide 23: CG Global Capital Markets: Increasing momentum and market share
CG Global Capital Markets: Increasing momentum and market share Lean and focused platform, capable of driving value for clients in all market environments (Revenue in C$ thousands) F2020 F2021 F2022 F2023 F2024 DIFFERENTIATED GLOBAL PLATFORM Revenue $204,636 $443,444 $341,453 $148,356 $166,649 Inves
Slide 24: 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 25: Disciplined sector focus
Disciplined sector focus Allows us to provide globally integrated services and expertise throughout market cycles COMBINED ADVISORY & UNDERWRITING REVENUE BY SECTOR ALL GEOGRAPHIES – Fiscal 2024 ALL CANADA U.S AUSTRALIA UK & EUROPE GEOGRAPHIES 24% 53% 12% 13% Capital Markets revenue Capital Markets
Slide 26: Global Investment Banking
Global Investment Banking Global Investment Banking Revenue by Sector Fiscal 2024 Unparalleled origination and placement capability Consumer 3% • Q4/24 Investment Banking revenue improved by 20.5% y/y and 23.6% compared to Q3/24 Metals & Mining • Agility allows us to harness leadership in emerging a
Slide 27: Global Advisory
Global Advisory Global Advisory Revenue by Sector Fiscal 2024 Increased contributions support margin strength Metals & Consumer Mining 3% 25% • Q4/24 Advisory revenue declined 36.6% y/y reflecting a more challenging environment for completions despite a strong pipeline of announced M&A • Strong trac
Slide 28: Global Distribution and Trading
Global Distribution and Trading Leading independent franchise for best-in-class execution capabilities • Geographically broad and deep relationships covering 2,260+ institutions • Range of multi-asset capabilities (cash equities, fixed income, electronic trading, options, risk arbitrage) • Market ma
Slide 29: 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 30: CG in the Community
CG in the Community Qredkite., S) Schulich JOWEFof Boweres 9 Ronald McDonald House Charities J. Australia School of Business ; fr RAINBOW eg SAVE A CHILD'S HEART RAILROAD WOH see seman N FOOD BANK Healthcare | REVOLUTIONIZED te. ¥¢IndigenousWorks Food Ban W Wy Central Okanagan she Canada Food Bank F
Slide 31: (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 32: Analyst coverage
Analyst coverage Echelon Wealth Cormark Securities Raymond James TD Securities Inc. Jeff Fenwick Partners Stephen Boland Graham Ryding Rob Goff Canaccord Genuity Group Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s perform
Slide 33: Financial highlights Q4 Fiscal 2024
Financial highlights Q4 Fiscal 2024 Page 33
Slide 34: Consolidated results: Three and twelve months ended March 31, 2024
Consolidated results: Three and twelve months ended March 31, 2024 Improved business mix contributes to earnings stability through market cycles Q/Q Y/Y Y/Y C$ millions (except per share data)1 Q4/24 Q3/24 Q4/23 F 2024 F 2023 Change Change Change Revenue $409,278 $389,503 5.1% $430,389 -4.9% $1,479,
Slide 35: Global Wealth Management
Global Wealth Management Three and twelve months ended March 31, 2024 Wealth Management revenue by region1 C$ millions, fiscal quarters $197.1 $195.0 $200.7 $191.0 $187.2 $179.7 $162.2 $169.3 Q/Q Y/Y Y/Y Q4/24 Q3/24 Change Q4/23 Change F 2024 F 2023 Change Revenue - Canada 77,574 $77,035 0.7% $78,41
Slide 36: Global Capital Markets
Global Capital Markets Three and twelve months ended March 31, 2024 Capital Markets Revenue by region C$ millions, fiscal quarters Q/Q Y/Y Y/Y $226.1 (C$ millions except percentages) Q4/24 Q3/24 Change Q4/23 Change F 2024 F 2023 Change $205.7 $196.9 $189.8 $202.9 $164.1 $145.7 $144.8 Commissions & F
Slide 37: Solid Capital Position
Solid Capital Position Well capitalized for continued investment in our strategic priorities Strong, liquid balance sheet protects our ability to compete efficiently Fiscal 2024 Fiscal 2023 C$ millions (except for per share amounts and numb er of shares) (As at March 31, (As at March 31, % Change
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