Guardian Directed Equity Path Portfolio (GGEP.F) · TSX:GGEP.F
Guardian Directed Equity Path Portfolio (GGEP.F) — Guardian Capital Group — Shareholder Meeting (May 2016)
33 slides from Guardian Directed Equity Path Portfolio (GGEP.F)'s shareholder meeting presentation, May 19, 2016
Slide 1: Guardian Capital Group Limited
Guardian Capital Group Limited Long-term stability and growth Annual Meeting of Shareholders | May 19, 2016 George Mavroudis | President and Chief Executive Officer
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain “forward-looking statements” with respect to Guardian Capital Group Limited and its products and services, including its business operations and strategy and financial performance and condition. These statements, characterized by such words as
Slide 3: Agenda
Agenda Overview of Guardian Capital Group’s business 2015 Highlights Investment Management Financial Advisory Questions 3
Slide 4: Guardian Capital's Vision, Mission and Values
Guardian Capital’s Vision, Mission and Values VISION MISSION To be a highly To meet our clients’ respected independent objectives by providing investment and wealth best-in-class management firm solutions VALUES Stability Trustworthiness Integrity 4
Slide 5: Guardian's Businesses
Guardian’s Businesses Corporate Activities and Investments Investment Management Management expertise, financing, AUM of $24.8 billion* coordination of business activities and support Shareholders’ equity: $498 million* Securities holdings: $534 million* Financial Advisory TSX Listed: GCG ;
Slide 6: Guardian's Fee Generating Assets
Guardian’s Fee Generating Assets Investment Management Financial Advisory Assets Under Management Assets Under Administration As at period end ($ billions) As at period end ($ billions) $14.9 $15.0 $25.0 $24.3 $24.8 $22.2 $13.1 $11.6 $18.8 $9.9 $15.9 $8.7 2011 2012 2013 2014 2015 2016 2011 2012 2013
Slide 7: 2015 Highlights
2015 Highlights Historic highs in key financial measures – Operating earnings $43 million, 13% growth – Shareholders’ equity per share $16.55, 6% growth – Corporate holdings of securities per share $17.72, 6% growth – Operating business units contributed $29 million (2/3 of total operating earning
Slide 8: 2015 Financial Statement Highlights
2015 Financial Statement Highlights % ($ millions, except per share amounts) 2015 2014 increase Net revenues $132.9 $119.3 11% Operating earnings $43.0 $38.1 13% EBITDA available to shareholders1 $47.8 $42.9 12% Net earnings available to shareholders $44.1 $37.0 19% AUM $24,278 $24,968 -3% AUA $14,9
Slide 9: Q1 2016 Financial Statement Highlights
Q1 2016 Financial Statement Highlights % ($ millions, except per share amounts) 2016 2015 increase Net revenues $35.1 $32.3 9% Operating earnings $11.3 $10.5 8% EBITDA available to shareholders1 $12.5 $11.6 8% Net earnings available to shareholders $23.8 $11.3 111% AUM $24,817 $26,093 -5% AUA $14,98
Slide 10: Net Revenue
Net Revenue Years Ended December 31 2015 net revenue of $133 million, 11% increase ($ millions) over prior year $65 million in net management fees, 7% higher on $132.9 higher average AUM and improved margins $119.3 $34 million in net commission revenue, 21% $101.3 higher due to combination of
Slide 11: Operating Earnings
Operating Earnings Years Ended December 31 Operating earnings increased $4.9 million, or ($ millions) 13%, over the prior year $43.0 Positive contributions to growth in operating earnings from all business segments $38.1 Maintained a 32% margin despite continued investment in new areas of grow
Slide 12: Operating Earnings by Segment
Operating Earnings by Segment Operating Earnings by Segment ($ millions) $35.0 $30.0 $28.5 $25.9 $25.0 $20.0 $15.3 $15.0 $10.1 $10.6 $14.5 $10.0 $12.2 $9.5 $11.6 $5.0 $7.0 $- 2011 2012 2013 2014 2015 Corporate Activities and Investments Operating Segments Growth in our Operating Segments, with les
Slide 13: Dividends per share
Dividends per share Quarterly Dividends Per Share Total of $0.29 per share paid in 2015 For the years ended Quarterly dividend rate increased to $0.085 per $0.085 share from $0.075 per share, 13% increase $0.075 $0.065 $0.050 $0.043 $0.040 2011 2012 2013 2014 2015 2016 For the year 2016, the rat
Slide 14: Share Buybacks
Share Buybacks Years Ended December 31 Since 2011, 9.6% of outstanding shares ($ millions) repurchased (3.3 million shares) $14.4 $46.8 million in cash returned to shareholders Average purchase price of $14.29 per share Buybacks funded by operating cash flows $8.3 No dilutive options issue
Slide 15: Shareholders' Equity
Shareholders’ Equity Equity per share, diluted 13.7% CAGR in Shareholders’ equity per share As at period end since 2011 $16.55 $16.63 6.0% increase in Shareholders’ equity per share $15.62 during 2015 $13.17 $11.16 $9.90 2011 2012 2013 2014 2015 2016 Q1 15
Slide 16: Investment Portfolio
Investment Portfolio Securities per share, diluted Provides a stable stream of investment income As at March 31, 2016 As at March 31: – Bank of Montreal represents 62% of the portfolio $0.70 $0.75 $0.11 (66% at December 31, 2015) $5.26 – Remaining 38% represents largely the proprietary investmen
Slide 17: Guardian Capital Strengths and Challenges
Guardian Capital Strengths and Challenges GROWTH Key challenges going Over the forward include: past five years, Guardian has DISTRIBUTION PRODUCT LEADERSHIP CAPABILITY made EXCELLENCE & PEOPLE significant & EXPANSION EXCELLENCE CANADIAN progress in its CONCENTRATION strategies: TECHNOLOGY INFRASTRU
Slide 18: Investment Management
Investment Management Institutional Investment Management $22.5 billion in AUM* $24.8 billion in AUM* Competitive investment products Executing on opportunities Active across multiple distribution channels Private Wealth Management $2.3 billion in AUM* * As at March 31, 2016 18
Slide 19: Institutional Investment Solutions
Institutional Investment Solutions Large Cap Core Stable, Growing Team Canadian Growth 33 Investment professionals Equities Average industry tenure of 21 years Equity Income $12.3 billion* Average Guardian tenure of 10 years Small/Mid Cap 16 have joined in the last 5 years Continuous
Slide 20: Distribution Channels and Target Clients
Distribution Channels and Target Clients GUARDIAN CAPITAL GROUP $24.8 billion in AUM As at March 31, 2016 INSTITUTIONAL RETAIL PRIVATE WEALTH Growing Assets $11.8 billion INTERMEDIARY $2.3 billion & Strategies Defined Benefit Sub-advisory Wrap Direct Client Global Pension Plans $4.4 billion $6.3 bil
Slide 21: Institutional Clients
Institutional Clients Assets Under Management AUM increased 1% in 2015 As at period end ($ billions) Future growth opportunities remain strong Continued success in developing leads through $11.3 $11.4 $11.8 key consultants $10.3 High conviction global and emerging markets $8.9 equity strateg
Slide 22: Retail Intermediary Clients
Retail Intermediary Clients Broker/Dealer Wrap Programs AUM increased 19% in 2015 Assets Under Management As at period end ($ billions) +170% growth since 2011 A leading money manager of separately-managed $6.2 $6.3 wraps $5.2 Significant representation on the 5 major Canadian $4.5 banks’ wr
Slide 23: Retail Intermediary Clients
Retail Intermediary Clients Sub-advisory AUM decreased 29% in 2015 Assets Under Management As at period end ($ billions) Decline mainly due to a combination of redemptions in underlying funds and $6.2 internalization by partners $5.6 9 relationships in 2015 compared to only 3 in 2008 $5.0 $5.0
Slide 24: Private Wealth Management Clients
Private Wealth Management Clients Assets Under Management AUM increased 7% in 2015 As at period end ($ billions) 12% CAGR growth since 2011 $2.3 $2.3 $2.1 Experienced client-focused investment professionals offering bespoke services in the $1.8 major Canadian markets of Toronto, Vancouver and
Slide 25: Financial Advisory
Financial Advisory Mutual Fund & Securities Dealerships $10.9 billion in AUA* $15.0 billion in AUA* National distribution platforms Leading platform for Canada’s independent investment advisors Life Insurance MGA $4.1 billion in AUA* * As at March 31, 2016 25
Slide 26: Financial Advisory - Operating Earnings
Financial Advisory - Operating Earnings Financial Advisory Operating Earnings ($ millions) $10.1 $6.4 $2.2 $(0.5) $(2.7) 2011 2012 2013 2014 2015 Significant growth in operating earnings through acquisitions, organic growth and management of costs Represents approximately 25% of Guardian’s opera
Slide 27: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers A dealership of choice for independent advisors across the country – MFDA and IIROC advisors Market-competitive product offering – access to Guardian investment solutions Solutions-based environment with processes supported by specialized teams, resources and
Slide 28: Mutual Fund and Securities Dealers
Mutual Fund and Securities Dealers Assets Under Management AUA grew by 14% across our platforms in 2015 As at period end ($ billions) The pipeline for recruiting new advisors remains $10.8 $10.9 strong $10.1 $20.4 million in net revenues in 2015, a 12% $9.1 increase over 2014 $7.7 $7.0 A sou
Slide 29: Life Insurance Managing General Agency
Life Insurance Managing General Agency Net Insurance Commission Revenue One of Canada’s largest life insurance managing For the years ended December 31 ($ millions) general agencies Provides advisors with access to a suite of $21.4 insurance and investment products – life insurance – disability
Slide 30: Life Insurance Managing General Agency
Life Insurance Managing General Agency Assets Under Administration AUA grew by 33% in 2015, largely benefiting As at period end ($ billions) from the acquisition of First Prairie Financial $4.00 $4.05 AUA grew by over 145% since 2011 due to organic growth, successful recruitment of advisors and
Slide 31: Life Insurance Managing General Agency
Life Insurance Managing General Agency Premiums: Life Insurance Policies Sold New policy sales generate For the years ended December 31 ($ millions) – first year commissions in the current year $56.0 – continuing service fees in the following years, which have a high persistency $45.0 $56 millio
Slide 32: Summary
Summary Key financial operating metrics set historical highs in 2015 – Net revenue – Operating earnings – EBITDA – Shareholders’ equity – AUA – Premiums on Life Insurance Policies Sold Solid investment performance Improving sustainable growth in operating earnings provides opportunity to fund
Slide 33: Explore the world of Guardian Capital
Explore the world of Guardian Capital guardiancapital.com 33
Guardian Capital Group — Shareholder Meeting (May 2016) on 6ix