Ia Financial Corporation Inc. · TSX:IAG
Ia Financial — Industrial Alliance Insurance and Financial Services — Merger or Acquisition (November 2005)
12 slides from Ia Financial's merger presentation, Nov 7, 2005
Slide 1: Acquisition of Clarington: Achieving Scale in Wealth Management
Acquisition of Clarington Achieving Scale in Wealth Management Yvon Charest President and CEO Normand Pepin Executive Vice-President November 7, 2005 1 Forward-Looking Statements This presentation may contain forward-looking statements about the operations, objectives and strategies of Industrial Al
Slide 2: Highlights and Transaction Details
Highlights Offer to acquire 100% of the outstanding shares of Clarington Corporation (“Clarington”) Unanimous support by the Clarington Board of Directors Senior management and other shareholders have signed lock-up agreements Exceptional complementary fit between IA and Clarington in terms
Slide 3: Compelling Strategic and Financial Transaction; Achieving Scale
Compelling Strategic and Financial Transaction Creates a scale player with more than $10.2 billion in retail fund AUM …allows IA to generate margins in line with the largest companies and provide benefits for unitholders Provides a national platform …brings wealth management in-line with IA’s na
Slide 4: Exceptional Fit for Both Organizations; Overview of Clarington
Exceptional Fit for Both Organizations Growing distribution platform Established mutual fund brand Strong investment performance Track record of sales success Integration expertise National mutual fund platform Diversified financial service provider Experience and innovation Entrepreneurial culture
Slide 5: What Clarington Brings to IA; AUM Growth Track Record
What Clarington Brings to IA A platform with a strong and recognized brand More diversified sources of distribution Facilitates greater sales through IA’s distribution network Combined scale to compete as a top 10 firm in the independent fund channel Demonstrated and proven track record fo
Slide 6: Net Sales Track Record; Operations Plan
Net Sales Track Record Sales Leader Since inception, Clarington has experienced only 3 months of net redemptions Average Net Sales as a % of Average AUM (Five years ended September 30, 2005) 30% 25% 24.0% 20% 15% 10% 5% 3.1% 2.2% 0% Clarington Top 10 Mutual Fund Industry Companies 11 Operations Pl
Slide 7: Strategic Rationale
Strategic Rationale 13 Accelerates Growth in AUM Significant Presence in Wealth Manufacturing and Distribution Sept. 30, 2005 Assets ($Million) Dec. 31, 2003 Sept. 30, 2005 (Pro forma) General Funds 10,308 11,688 11,688 Segregated Funds 5,042 7,027 7,027 $25.1 Billion Mutual fund manufacturer 94 1,2
Slide 8: Combination Creates a National Platform; Successful Acquisition Track Record
Combination Creates a National Platform Clarington realizes our goal to be a national player in the retail fund business Brings this business segment more in-line with our well-recognized national presence in the life insurance business Current Mutual Fund Business Post-transaction Mutual Fund B
Slide 9: Steadily Expanding Shelf Space; Investment Management Performance
Steadily Expanding “Shelf Space” Network Number Created Career 1,400 Traditional (Dedicated life agents) network MGAs 12,000 Traditional (Life brokers) network National Accounts (Securities brokers) 200 Since 1998 Independent mutual fund brokers 1,450 Since 2001 IA securities brokers 100 Since 2002
Slide 10: Financial Highlights
Financial Highlights 19 Financial Highlights Share Buyback: IA intends to repurchase the shares issued under the share option, through the company’s NCIB within 2 months (2% limitation imposed by the TSX) Proposed Financing: Uses of Cash: Minimum Cash Consideration1 $155 million Maximum repurchase o
Slide 11: Accretion / Dilution Analysis
Accretion / Dilution Analysis Immediate EPS Accretion 2006 2007 First Call Consensus Net Income ($Million) Industrial Alliance $203.9 $233.4 Clarington ($3.6) ($2.8) Combined Net Income $200.3 $230.6 Adjustments (after-tax) Adjustments and Synergies $14.0 $16.4 Financing Cost ($8.0) ($8.0) Consolida
Slide 12: Summary; Questions & Answers
Compelling Strategic and Financial Transaction Larger presence in the growing wealth management market … complements IA’s strength in the individual life and annuity segments Becoming a more significant player in retail funds sold through advisors … transaction achieves significant scale in the
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