Canaccord Genuity Group Inc. · TSX:CF
Canaccord Genuity — Q4 2015 Earnings Presentation
33 slides from Canaccord Genuity's earnings presentation, June 2015
Slide 1: Fourth quarter and fiscal 2015
Investor presentation l June 2015 Fourth quarter and fiscal 2015
Slide 2: Caution regarding forward looking statements
Caution regarding forward looking statements This document may contain certain “forward-looking information” (as defined under applicable securities laws). These statements relate to future events or future performance and include management’s expectations, beliefs, plans, estimates, intentions, and
Slide 3: Pre-eminent global investment bank focused on the mid-market
Canaccord Genuity – Pre-eminent global investment bank focused on the mid-market Fully integrated global business combining independent expertise with a global distribution platform Global M&A and Advisory franchise Global Restructuring practice Global Equity and Fixed Income distribution TORO
Slide 4: Diverse global platform stabilizes revenue streams
Diverse global platform stabilizes revenue streams FISCAL 2015 REVENUE BREAKDOWN C$ million $880.8 million $49.6 ASIA-PACIFIC & OTHER 5.6% of fiscal 2015 revenues $800.00 Global diversification provides $281.5 earnings exposure to market UK & EUROPE $600.00 32.0% of fiscal 2015 revenues strength in
Slide 5: Canaccord Genuity in North America
Canaccord Genuity in North America Co-ordinated leadership improves cross border collaboration Investment Banking 120+ investment bankers International Equities Q4/15: Led or co-led 10 • 22 professionals, trading: transactions, raising - OTC & Pink Sheet securities C$1.1 billion for clients - AD
Slide 6: Canaccord Genuity in the UK & Europe
Canaccord Genuity in the UK & Europe A leading UK and European securities and investment banking business Investment Banking UK Debt Markets and 80+ investment bankers Fixed Income Q4/15: Led or co-led 2 16 professionals Dublin transactions, raising Active in UK retail bond market C$201.7 mi
Slide 7: Canaccord Genuity in Asia-Pacific
Canaccord Genuity in Asia-Pacific Broad sector capability driven by global platform Investment Banking Research 40 investment bankers and Beijing 10+ research professionals growing covering over 80 stocks Q4/15: Led or co-lead 12 Energy Hong Kong transactions, raising Metals & Mining C$316
Slide 8: Investment banking revenue by sector
Investment banking revenue by sector Generating revenue from a broad range of sectors FISCAL 2015, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE Sustainability Other Media & Telecommunications Support Services 9% Consumer & Retail Infrastructure Sustainability 2% 5% 1% 1% Investment Companies
Slide 9: Investment banking revenue by sector
Investment banking revenue by sector Cross-border collaboration strengthens sector coverage in each region FISCAL 2015, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE Consumer & Retail Infrastructure Sustainability Financials Sustainability 1% Media & Telecommunications 1% Metals & Mining 1% 1
Slide 10: Investment banking revenue by sector
Investment banking revenue by sector Cross-border collaboration strengthens sector coverage in each region FISCAL 2015, % OF REVENUE FISCAL 2011 – FISCAL 2014, % OF REVENUE Consumer & Retail Consumer & Retail Infrastructure 8% Metals & Mining Infrastructure Sustainability 3% 1% 1% - 21% 4% Metals &
Slide 11: Global wealth management provider
Global wealth management provider Canaccord Genuity Wealth Management has C$33.3 billion1 of assets under management and administration and operates in six geographies, with approximately 300 investment advisors worldwide Clients assets – global (C$ billions)2 Wealth Management operations in six geo
Slide 12: Transitioning to fee-based and managed accounts
Transitioning to fee-based and managed accounts Canada UK & Europe Transactional and wealth management services Wealth Management oriented business targeted to 16 branches across Canada (corporate and agent owned) mass-affluent investors A key distribution channel for capital markets transac
Slide 13: Growing fee-based revenue from wealth management
Growing fee-based revenue from wealth management FEE-BASED REVENUE AS A PERCENTAGE OF WEALTH MANAGEMENT REVENUE – CANADA Canaccord Genuity fiscal quarters 40.1% 40% 35.8% 34.3% 34. 9% 31.8% 32.4% 31.6% 29.6% 28.0% 30% 25.7% 26.2% 25.0% 19.4% 19.9% 18.5% 20% 17.0% 14.0% 15.2% 11.8% 12.1% 10% 0% Q1/11
Slide 14: Experienced leadership team
Experienced leadership team David Kassie Brad Kotush Scott Davidson Chairman & CEO, EVP, Global Head of Corporate EVP, Chief Financial Officer, Canaccord Genuity Group Inc. Development & Strategy, Canaccord Genuity Group Inc. Canaccord Genuity Group Inc. Dvai Ghose Barry Goldberg Mark Whaling Global
Slide 15: Strong, diverse corporate board
Strong, diverse corporate board Nine board members; eight independent directors David Kassie Terry Lyons William Eeuwes Chairman of the Board Lead Independent Director Independent Director CEO of Canaccord Genuity Group Inc.; Past Chairman, Northgate Minerals Corp. Senior Vice President and Managing
Slide 16: Financial performance
Financial performance Capital Metrics, Cost Containment, Quarterly Performance, Annual Performance To us there are no foreign markets.™
Slide 17: Solid capital position
Solid capital position Well capitalized for continued investment in key priorities Fiscal 2015 dividend of $0.25 Reviewed and approved by board each quarter Special dividend of $0.05 approved in Q2/15 Able to support increasing business activities and invest in opportunities to capture addit
Slide 18: Continued focus on cost containment
Continued focus on cost containment CANACCORD GENUITY EXPENSES - adjusted for changes in foreign exchange rates (excluding significant items and incentive compensation) (C$ millions) 118 expenses excluding incentive compensation at Q4/15 average fx rates (b) expenses excluding incentive compensation
Slide 19: Q4/15 financial performance
Q4/15 financial performance Revenue Net Income1 (C$ millions) (C$ millions) $254 $246 $230 $231 $236 $232 $218 $29.1 $24.0 $187 $187 $183 $166 $20.5 $21.2 $20.7 $178 $163 $14.1 $15.6 $160 $11.8 $148 $10.6 $8. 8 $5.9 $6.7 $120 ($1.7) $2.1 ($16.3) ($14.3) Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/1
Slide 20: Fiscal 2015 financial performance
Fiscal 2015 financial performance Revenue Net Income1 (C$ millions) (C$ millions) $881 $804 $797 $114.1 $757 $855 $732 $93.0 $81.2 $79.3 $68.8 $605 $583 $578 $42.0 $39.3 $25.2 $478 -$1.4 $25.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Diluted
Slide 21: Appendices
Appendices Canaccord Genuity growth story, Peak earnings potential, Canaccord Genuity – Financial snapshot, Wealth Management – Financial snapshot, Seven key values, Management biographies To us there are no foreign markets.™
Slide 22: Canaccord Genuity growth story
Canaccord Genuity growth story The pre-eminent global investment dealer focused in the mid-market Executing on corporate development objectives LEADING PLATFORM IN THE UK Built important scale in our US and UK operations Named Alexis de Rosnay CEO of our UK & Increased Canaccord Genuity’s cros
Slide 23: 2007: Peak earnings potential
2007: Peak earnings potential PRO FORMA COMBINED COMPANY PERFORMANCE IN 2007 C$ Millions, pro forma revenue and net income before tax. Approximate – based on CF FY2008, Genuity FY2008, CSHP FY2007 figures*. Canaccord Genuity Capital Markets Collins Stewart Hawkpoint $1,600 $400 $1.45 billion $1,600
Slide 24: Canaccord Genuity: Financial snapshot
Canaccord Genuity: Financial snapshot CANACCORD GENUITY: GLOBAL MEASURES Key Metrics (C$, Excluding significant items - non-IFRS) FY2015 Q3/151 Q4/151 Gross Revenue1 $613.1 mil $103.9 $159.4 Net Income $56.2 mil $(17.9) mil $12.5 mil (before intersegment allocations and income taxes) Net Income (aft
Slide 25: Canaccord Genuity Wealth Management: Financial snapshot
Canaccord Genuity Wealth Management: Financial snapshot CANADA¹ : WEALTH MANAGEMENT Key Metrics (C$, Excluding significant items – non IFRS) FY20152 Q3/152 Q4/152 Gross Revenue $125.3 mil $28.3 mil $33.1 mil Net Income $10.4 mil $2.0 mil $3.3 mil (before intersegment allocations and income taxes) Ne
Slide 26: Seven values drive our business
Seven values drive our business Seven key values drive Canaccord Genuity employees and management in delivering results to our shareholders, clients and community. They support our unwavering commitment to building lasting client relationships, creating shareholder value and generating innovative id
Slide 27: Executive biographies
Executive biographies David Kassie Brad Kotush Chairman & CEO, Chief Financial Officer, Canaccord Genuity Group Inc. Canaccord Genuity Group Inc. David Kassie serves as Chairman and CEO of Canaccord Genuity Brad Kotush is Executive Vice President and Chief Financial Officer of Group Inc. He assumed
Slide 28: Executive biographies
Executive biographies Alexis de Rosnay Dan Daviau Chief Executive Officer Chief Executive Officer Canaccord Genuity Limited North American Capital Markets (UK & Europe) (Canadian & US capital markets operations) Alexis de Rosnay was appointed Chief Executive Officer of Prior to the Genuity/Canaccord
Slide 29: Executive biographies
Executive biographies Marcus Freeman Alex Tan Chief Executive Officer Chief Executive Officer Canaccord Genuity (Asia-Pacific) Canaccord Genuity (Singapore) (Australia, Hong Kong, and China capital markets) (Operations in Singapore) Marcus is the Managing Director and CEO of Canaccord Alex Tan joine
Slide 30: Executive biographies
Executive biographies Mark Whaling Dvai Ghose Global Head of Equity Sales and Trading Global Head of Equity Research Mark Whaling serves as Senior Managing Director, Global Dvai Ghose serves as Global Head of Equity Research and Head of Equity Sales and Trading. Mark joined Collins Telecommunication
Slide 31: Executive biographies
Executive biographies Barry Goldberg Scott Davidson Managing Director, EVP, Global Head of Corporate Global Head of M&A and Restructuring Development & Strategy Canaccord Genuity Group Inc. Barry is a Managing Director and the Global Head of M&A Scott Davidson is EVP, Global Head of Corporate and Re
Slide 32: Executive biographies
Executive biographies Stuart Raftus David Esfandi President, Chief Executive Officer, Canaccord Genuity Wealth Management (Canada) Canaccord Genuity Wealth Management (UK) Stuart Raftus joined the firm in January 2014 as President David Esfandi was appointed CEO of Canaccord Genuity of Canaccord Gen
Slide 33: Disclaimer
Disclaimer This material is provided for information purposes only and is intended for distribution in those jurisdictions where subsidiaries of Canaccord Genuity Group Inc. (together, “Canaccord Genuity”) are registered as advisors or dealers in securities. Any distribution or dissemination of this
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