Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q2 2018 Earnings Presentation
23 slides from Canaccord Genuity's earnings presentation, November 2017
Slide 1: Second Quarter Fiscal 2018 Investor Presentation
Second Quarter Fiscal 2018 INVESTOR PRESENTATION | November 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 Expanding 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-
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 Trade at material discount to sum-of-the-parts Renewed dividend policy in June 2017, buyback opportunities under NCIB available as profitability improve
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
Financial Overview $192 M $54.5 B $465 M $11.6M Revenue for Q2 Fiscal 2018 Assets under administration Working capital In annualized savings and management in G&A, comms/technology and other overhead expenses Delivering for clients in a Executing on our strategy to Well capitalized for continued Imp
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: Expanding Global Wealth Management
Expanding Global Wealth Management Positioned for margin expansion and enhanced earnings as we increase scale across wealth management Canada wealth management UK & Europe wealth management A key distribution channel for capital markets A Top 10 wealth manager in the UK by assets transactions wi
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 volatility of capital markets Lean, focused platform where al
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 Q2 2018 Q2 2018 FOCUSED WHERE WE CAN BE MOST RELEVANT TO OUR CLIENTS United Canada Commissions Investment AND PROVIDE SUPERIOR REVENUE State
Slide 10: Strong Focus on Cost Containment
Strong Focus on Cost Containment Enhancing our operating efficiency ACHIEVED OPPORTUNITIES Significant reductions in G&A, communications and technology Additional G&A savings anticipated as measures take effect costs through F2018 Improved productivity – F2017 revenue per employee Globally i
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 transactions over last Strongest revenue contributor in Fiscal 2017 and H118 5 fiscal years1 Fu
Slide 12: Global operating businesses
Global operating businesses F2015 F2016 F2017 Q2/17 Q2/18 Wealth Management Canada Revenue $125,339 $108,208 $132,292 $29,732 $32,081 Pre-tax net income (loss)1 $(7,102) $(7,490) $1,964 $632 $1,074 Pre-tax profit margin1 (5.7)% (6.9)% 1.5% 2.1% 3.3% UK & Europe Revenue $125,551 $138,359 $134,819 $33
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: Analyst Coverage
Analyst Coverage Cormark Securities TD Securities Inc. Jeff Fenwick Graham Ryding 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 analysts are theirs alone and do not
Slide 16: 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 17: Canaccord Genuity Group Inc.: Financial Snapshot
Canaccord Genuity Group Inc.: Financial Snapshot CANACCORD GENUITY GROUP INC.: GLOBAL MEASURES Key Metrics F2015 F2016 F2017 Q2/17 Q2/18 Gross Revenue $880,763 $787,805 $879,546 $193,602 $191,547 Total Expenses1 $827,458 $793,862 $817,096 $190,695 $186,152 Incentive Compensation $455,480 $417,876 $4
Slide 18: 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 $60 million privat
Slide 19: Q2/18 Financial Performance
Q2/18 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) 272 254 246 32.7 232 29.1 230 231 236 24.0 218 214 208 20.5 21.2 20.7 191 201 206 194 200 192 15.6 187 183 182 13.3 166 11.8 6.7 8.8 8.1 6.3 3.5 1.9 2.0 1.6 (2.1) (14.3) (19.1) Diluted EPS1 Book Value (C$) (C$ per diluted sh
Slide 20: Fiscal 2017 Financial Performance
Fiscal 2017 Financial Performance Revenue Net Income1 (C$ millions) (C$ millions) 855.2 880.8 879.5 114.1 803.6 797.1 787.8 756.9 731.5 93.0 604.9 81.2 79.3 577.5 68.8 477.7 49.2 42.0 39.3 25.6 25.2 (1.4) (6.0) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Slide 21: Canaccord Genuity Wealth Management: Financial Snapshot
Canaccord Genuity Wealth Management: Financial Snapshot Canada¹: Wealth Management Key Metrics FY2017 Q2/17 Q1/18 Q2/18 (C$) Gross Revenue $132.3 M $29.7 M $36.9 M $32.1 M Income (Loss) 2 (after intersegment allocations and before income taxes) $2.0 M $0.6 M $3.2 M $1.1 M Assets under Administration
Slide 22: Canaccord Genuity Wealth Management
Canaccord Genuity Wealth Management Growing assets and contributions from fee-based business UK & Europe Wealth Management Canada Wealth Management Fee-based Revenue as a Percentage of Wealth Management Revenue Fee-based Revenue as a Percentage of Wealth Management Revenue *percentage of total reven
Slide 23: Canaccord Genuity Global Capital Markets: Financial Snapshot
Canaccord Genuity Global Capital Markets: Financial Snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$) FY2017 Q2/171 Q1/181 Q2/181 Gross Revenue1,2 $596.1 M $127.0 M $121.8 M $118.9 M Income (Loss) (after intersegment allocations and $46.4 M $(3.2) M $(6.4) M $(1.9) M before income taxes)
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