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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


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CI Financial

Earnings Conference Call Second Quarter 2019

August 8, 2019

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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

  • stable. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and

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.

Important Information

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[ 1 ]

Earnings Conference Call | Second Quarter 2019

Conference Call Participants

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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[ 2 ]

Earnings Conference Call | Second Quarter 2019

Kurt MacAlpine

New CEO will join CI September 1, 2019

  • EVP and Head of Global Distribution for Wisdom Tree
  • Leader of the North American Asset Management

Practice at McKinsey & Company

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[ 3 ]

Earnings Conference Call | Second Quarter 2019

S&P 500 & TSX Composite

(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

Industry Net Sales

(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

Key Priorities

  • Ease of business

– Investment excellence – Modernize product platform and offerings

  • Integrated distribution platform

No advice Advice

Supporting technology:

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Doug Jamieson

Chief Financial Officer

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Earnings Conference Call | Second Quarter 2019

Financial Highlights

Change [millions, except per share] Q2-2019 Q1-2019 Q2-2018 QoQ YoY

Average AUM $131,133 $128,887 $139,487 2%

  • 6%

Ending AUM $130,186 $131,309 $138,182

  • 1%
  • 6%

Assets under advisement $46,606 $45,644 $43,717 2% 7% Net income $111.9 $140.0 $159.9

  • 20% -30%

per share $0.47 $0.58 $0.61

  • 19% -23%

Adjusted net income* $138.5 $140.0 $159.9

  • 1% -13%

per share $0.58 $0.58 $0.61 0%

  • 5%

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

SG&A Expenses

(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

  • Reducing spend on mature business and reinvesting

in growing lines of business

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Earnings Conference Call | Second Quarter 2019

Free Cash Flow & Return to Shareholders

(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

Debt

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

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Peter Anderson

Chief Executive Officer

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[ 12 ]

Earnings Conference Call | Second Quarter 2019

  • Redemptions slowing
  • Improvements:

– Investment management performance – New product offerings – IIROC and new advisor sales

  • CI First Asset:

– AUM now exceeds $7 billion

  • New marketing campaign

Canadian Retail Sales

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Earnings Conference Call | Second Quarter 2019

  • Redemptions due to:

– Previous short-term performance – Shifts in asset allocation – Structural changes in the industry

  • Aligned with CI Private Counsel
  • Continued success in placing CI in searches and finals

CI Institutional Asset Management

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Earnings Conference Call | Second Quarter 2019

  • Solid growth continues

– Organic – Advisor recruitment

  • Ongoing investments, including platforms and products

Assante and Stonegate

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

  • Q2: 76% of assets in 1st/2nd quartile
  • Improvements to one and three-year performance

Investment Management

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Earnings Conference Call | Second Quarter 2019

  • Returned to positive net sales in Q2
  • Large institutional win, majority to fund in Q3-2019
  • Excellent opportunities as a result of Royal Commission
  • Strong investment team performance

GSFM

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Earnings Conference Call | Second Quarter 2019

  • WealthBar

– Results have exceeded expectations – Assante Connect launched

  • BBS/Virtual Brokers

– Transferred some Assante accounts to BBS – Institutional onboarding continues – Asset growth continues

Digital

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[ 18 ]

Earnings Conference Call | Second Quarter 2019

  • Kurt MacAlpine will begin September 1
  • Sales remains our top priority
  • $35 million restructuring provision
  • Continued focus on SG&A
  • Improved investment management performance
  • We continue to buy back shares

Summary

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Q&A