Igm Financial Inc. · TSX:IGM
Igm Financial — Merger or Acquisition (November 2016)
16 slides from Igm Financial's merger presentation, November 2016
Slide 1: Strategic Investment in China AMC
STRATEGIC INVESTMENT IN CHINA AMC Expanding IGM Financial’s business opportunities into high growth Chinese market STRENGTH | FOCUS | GROWTH
Slide 2: Caution Concerning Forward Looking Statements
CAUTION CONCERNING FORWARD LOOKING STATEMENTS Certain statements in this report other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial’s current expectations. Forward-looking statements are provided to assist the reader in unde
Slide 3: IGM Financial – Conference Call Participants
IGM Financial – Conference Call Participants Paul W. Jeffrey R. Barry S. Kevin E. Greg D. Hancock Carney McInerney Regan Tretiak Vice-President, President & President & Executive Vice- Executive Vice- Finance and CEO, IGM CEO, President & President and Investor Financial Mackenzie CFO, CFO, Power Re
Slide 4: Transaction summary
Transaction summary • IGM Financial, through its subsidiary Mackenzie Financial Corporation (Mackenzie Investments), to purchase 13.9% of China Asset Management Co., Ltd. (China AMC) for RMB¥3.34B (CAD$647MM) • Power Corporation of Canada to increase its current 10.0% interest by acquiring an additi
Slide 5: Compelling strategic opportunity
Compelling strategic opportunity IGM to acquire strategic interest in China AMC Diversifies IGM’s business outside of Canada 1 into a high growth market 2 Leading asset manager in China Partnership opportunities with China AMC 3 creates value for stakeholders 4 Compelling long term earnings growth 5
Slide 6: China is the second largest economy in the world
1 China is the second largest economy in the world • China is the second largest economy in the world, up from 7th in 1980, accounting for 15% of global GDP 1980 2016 Source: IMF World Economic Outlook 6
Slide 7: Aging Chinese population stimulates need for retirement savings and asset management
Aging Chinese population stimulates the need for 1 retirement savings and asset management Chinese Population by Age Savings Rate (% of GDP, 2013) 49% • China has one of the highest savings rates among large countries • Savings in financial assets tends to be in bank deposits 22% 18% China Canada Un
Slide 8: Mutual fund industry poised for growth
1 Mutual fund industry poised for growth • China’s discretionary financial assets remain significantly weighted towards bank deposits relative to western economies Discretionary Financial Canadian Discretionary Mutual Fund Assets (% of GDP, 2013) Assets (2013) Financial Assets C$17.6T C$3.5T C$0.9T
Slide 9: Robust industry growth with several catalysts for continued expansion
Robust industry growth with several catalysts for 1 continued expansion AUM of Asset Management Companies Growth Drivers Consensus Industry Growth Rate Forecast of China’s AUM (RMB billions) approximately 15% Per Annum Continued development of capital markets Continued healthy Chinese economic S
Slide 10: China AMC – A leading asset manager in China
2 China AMC – A leading asset manager in China Strong AUM Growth RMB Billions ¥1,200 ¥1,100 (CAD$215B) ¥1,000 ¥963 +41% • Founded in April 1998, China AMC is a leading CAGR ¥800 asset management company in China ranking in the top 3 by assets within each of the mutual fund ¥600 ¥522 and institutiona
Slide 11: Total AUM is broadly diversified across product structures and distribution channels
Total AUM is broadly diversified across product 2 structures and distribution channels China AMC AUM Mix June 2016 Equity & Balanced Bond Segregated Accounts Institutional Corporate Pension Mutual Business NCSSF Funds Subsidiary Business Money Market Source: China AMC NCSSF refers to National Counci
Slide 12: Value creation opportunities
3 Value creation opportunities • Value creation opportunities expected over time as Mackenzie and China AMC continue to collaborate on product and distribution opportunities • Four key areas of opportunity have been identified with Mackenzie already having been awarded a QDII mandate earlier in 2016
Slide 13: Attractive financial profile – Compelling long-term earnings growth
Attractive financial profile – Compelling long-term 4 earnings growth • Combined investment of RMB 3.34B (CAD$647M) represents 16x 2015 China AMC earnings • China AMC has compelling long term earnings growth profile on stand-alone basis • Opportunity to add incremental value through IGM partnership
Slide 14: Power Corporation and IGM: the 2nd largest shareholders in China AMC
Power Corporation and IGM: the 2nd largest shareholders in China AMC, a leading asset manager in China • Significant investment and influence in an industry pioneer and leader, with a combined interest of 27.8% − Second to the controlling shareholder CITIC Securities with 62.2% − Power Corporation h
Slide 15: Summary
Summary 1 • Growth market with favourable demographics & high savings rate Diversifies into high growth market • Chinese asset management industry at early stage of development • Leveraging Power’s 30 yr + investment experience in China 2 Leading asset manager in China • RMB¥1.1 trillion (CAD$215B)
Slide 16: Q&A
ISM, Q&A 16
IGM Financial — Merger or Acquisition (November 2016) on 6ix