CI Financial
Earnings Conference Call Second Quarter 2019
August 8, 2019
Important Information This presentation contains forward-looking - - PowerPoint PPT Presentation
CI Financial Earnings Conference Call Second Quarter 2019 August 8, 2019 Important Information This presentation contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with
Earnings Conference Call Second Quarter 2019
August 8, 2019
Earnings Conference Call | Second Quarter 2019
This presentation contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in these forward-looking statements include that the investment fund industry will remain stable and that interest rates will remain relatively
market conditions, including interest and foreign exchange rates, global financial markets, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure materials filed with applicable securities regulatory authorities from time to time. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise. This presentation contains non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. However, management uses these financial measures and also believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these financial measures in analyzing CI’s results. These non-IFRS measures are described and/or reconciled to the nearest IFRS measure in CI’s Management’s Discussion and Analysis available at www.cifinancial.com. Figures exclude non-controlling interest, where applicable.
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Earnings Conference Call | Second Quarter 2019
Peter Anderson
Chief Executive Officer
Douglas Jamieson
Chief Financial Officer
Steven Donald
Chief Risk Officer CI Financial
Rohit Mehta
EVP CI Financial
Darie Urbanky
President & Chief Operating Officer CI Financial
Sean Etherington
President, Assante Wealth Management
Roy Ratnavel
EVP & National Sales Manager CI Financial
Jaime Ross
President CI Private Counsel CIIAM
Available for questions
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Earnings Conference Call | Second Quarter 2019
New CEO will join CI September 1, 2019
Practice at McKinsey & Company
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Earnings Conference Call | Second Quarter 2019
(Total Index Returns, January 1, 2018 – June 30, 2019)
Source: Bloomberg Jan ‘18 Apr ‘18 Jul ‘18 Oct ‘18 Jan ‘19 Apr ‘19 Jun ‘19
TSX S&P 500
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Earnings Conference Call | Second Quarter 2019
(YTD June 30, 2019, in $billions)
Source: SI Research – Investor Economics Insight 2018 22 15 9 (3) 10 2 2 16 2018 2018 2018 2019 2019 2019 2019
All Funds Equity Balanced Fixed Income
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Earnings Conference Call | Second Quarter 2019
– Investment excellence – Modernize product platform and offerings
No advice Advice
Supporting technology:
Chief Financial Officer
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Earnings Conference Call | Second Quarter 2019
Change [millions, except per share] Q2-2019 Q1-2019 Q2-2018 QoQ YoY
Average AUM $131,133 $128,887 $139,487 2%
Ending AUM $130,186 $131,309 $138,182
Assets under advisement $46,606 $45,644 $43,717 2% 7% Net income $111.9 $140.0 $159.9
per share $0.47 $0.58 $0.61
Adjusted net income* $138.5 $140.0 $159.9
per share $0.58 $0.58 $0.61 0%
Free cash flow $146.5 $143.5 $163.0 2% -10%
*Adjusted for a $26.6 million ($35.0 million before tax) restructuring provision
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Earnings Conference Call | Second Quarter 2019
(in $millions)
135 130 125 120 115 110 135 130 125 120 115 110
124.8
Q2-2019
127.3
Q2-2018
128.9
Q3-2018
123.5
Q4-2018
126.1
Q1-2019
in growing lines of business
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Earnings Conference Call | Second Quarter 2019
(in $millions)
300 250 200 150 100 50 –
Free Cash Flow Dividends Buybacks
Q2-2018 163 94 153 Q3-2018 169 61 189 Q4-2018 45 160 157 Q1-2019 44 61 144 Q2-2019 43 95 147
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Earnings Conference Call | Second Quarter 2019
1,800 1,500 1,200 900 600 300 – 3.00 2.50 2.00 1.50 1.00 0.50 –
Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019
Net Debt
Net Debt to EBITDA*
Gross Debt
1,126 1,209 1,255 1,270
1,504 1,529 1,525 1,429 1,444
Debt to EBITDA* ratio (in $millions)
1,268 Gross Debt to EBITDA*
*Reflects EBITDA adjusted for provisions, where applicable
Chief Executive Officer
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Earnings Conference Call | Second Quarter 2019
– Investment management performance – New product offerings – IIROC and new advisor sales
– AUM now exceeds $7 billion
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Earnings Conference Call | Second Quarter 2019
– Previous short-term performance – Shifts in asset allocation – Structural changes in the industry
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Earnings Conference Call | Second Quarter 2019
– Organic – Advisor recruitment
50,000 40,000 30,000 20,000 10,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q2 2019
Assets Under Advisement (in $millions)
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Earnings Conference Call | Second Quarter 2019
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Earnings Conference Call | Second Quarter 2019
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Earnings Conference Call | Second Quarter 2019
– Results have exceeded expectations – Assante Connect launched
– Transferred some Assante accounts to BBS – Institutional onboarding continues – Asset growth continues
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Earnings Conference Call | Second Quarter 2019