Q1-2020 Earnings Call
May 6, 2020
Q1-2020 Earnings Call May 6, 2020 Important Information This - - PowerPoint PPT Presentation
Q1-2020 Earnings Call May 6, 2020 Important Information This presentation contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (CI)
May 6, 2020
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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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Kurt MacAlpine Chief Executive Officer Douglas Jamieson Chief Financial Officer
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16th, 95%+ as of March 23rd
assistance and meals, delivered safely on-site to prevent them from entering public places
corporate experts are providing free financial counseling to Canadians
cope with the impact of COVID-19
from pre-COVID-19 levels
Investments and advisor businesses
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DoubleLine (launching May 12th)
Strong financial performance Net flows Capital Allocation Corporate strategy
marketable securities losses
, March decline of 112%
to the prior quarter
will be fully repaid in May
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Q1-2020 Q4-2019 Q1-2019 QoQ YoY
Average AUM $127,163 $130,542 $128,521 (3%) (1%) Ending AUM $111,065 $131,741 $130,944 (16%) (15%) Assets under administration $44,611 $50,505 $46,393 (12%) (4%) Adjusted net income $126.5 $147.5 $140.0 (14%) (10%)
$0.58 $0.66 $0.58 (12%)
Free cash flow $143.7 $168.3 $143.5 (15%)
Change
All numbers in millions, except per share
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Asset Management
All numbers in $millions 29.4 29.7 30.1 29.4 30.1
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Wealth Management
96.6 95.1 94.5 84.4 84.9 Q2 - 2019 Q1- 2020 Q3 - 2019 Q1 - 2019 Q4 - 2019
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144 44 147 43 145 42 168 41 144 40 61 95 150 142 104 Q1-2019 Q2-2019 Q3-2019 Q4-2019 138 Q1-2020 193 144 105 183 Dividends Free cash flow Buybacks
All numbers in $millions
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Q1-2019 Q3-2019 Q1-2020 Q2-2019 Q4-2019
*Reflects EBITDA adjusted for provisions, where applicable
1,268 1,270 1,341 1,383 1,464 1,569 1,529 1,525 1,604 1,745 Gross debt Net debt
1.5 2.2 1.9 1.8 1.8 1.6 1.5 1.8 1.6
Gross debt to EBITDA Net debt to EBITDA
All numbers in $millions, except debt ratios
1.9
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[$millions]
While credit markets have improved considerably over the past few weeks, we are maintaining our conservative stance but are continuously monitoring and will re-evaluate based on market conditions
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April net sales [$millions] Canadian retail (436) Canadian institutional (94) International (95) Closed business (40) Total (665) Canadian retail net sales improvement April-2020 vs. April-2019 Canadian institutional net sales improvement April-2020 vs. April-2019
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Modernize our asset management business Expand our wealth management platform Globalize our company
increasingly important, and difficult to achieve in Canada
serviced and supported globally
global markets
important than ever
capabilities uniquely positions us to be Canada's market leader
becoming increasingly complex and digital
preferences
servicing and support
change
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As part of our new corporate strategy, we are transforming CI into an integrated, global asset and wealth management company The current brands and names that we are using for our various businesses do not allow us to effectively communicate to the marketplace the breadth and depth of our capabilities – Today, we market ~20 brands in total, most of which have no affiliation to CI, adding a lot of unnecessary confusion, complexity, and costs, while significantly reducing our marketing return on investment In addition, consumer preferences have changed considerably over the past few years with clients gravitating to at-scale companies and those with simple and clearly articulated value propositions Over the past few months, we have been working on a brand enhancement strategy designed to modernize and change the perception of CI and streamline, simplify, and clarify our communications to
This initiative will be rolled out over the coming months
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▪ Retained elements of the historical logo ▪ Icon prominently frames and showcases CI ▪ Modern font and text layout ▪ Designed to be leveraged and scaled
across business lines and new acquisitions
▪ Provides consistency to create and build
an integrated global family
Asset Management Today Asset Management Tomorrow
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