Fiscal 2015 Annual Report
Shareholder information

Global Performance Highlights

Fiscal 2015 was a year during which our clients were able to successfully leverage the strengths of our global platform and take advantage of our differentiated service offering. Through a period of continuous adjustment, we were able to grow our revenues by staying focused, performance-driven and accountable to our clients and to our business.

$880.8 million
in annual revenue
1,197,649 
Shares purchased for cancellation under NCIB programme
$0.25 per share
Fiscal 2015 dividend distribution

In November, the Board of Directors approved a special dividend payment of $0.05, which increased our annual dividend distribution to $0.25. Additionally, we remained active on our normal course issuer bid (NCIB) buy-back programme throughout the fiscal year, reflecting our confidence in delivering on our business plan, while continuing to maintain financial flexibility.

Canaccord Genuity Group Inc. is the publicly traded parent company of a global group of financial services businesses that provide comprehensive investment banking and wealth management services to corporate, institutional and private clients from its global operations in North America, the UK & Europe and the Asia-Pacific region. The two primary operating divisions of the Company are Canaccord Genuity, our global capital markets division, and Canaccord Genuity Wealth Management, our global wealth management operation.

Revenue for Fiscal 2015 (C$ millions)
Year Data
2011 803.6
2012 604.9
2013 797.1
2014 855.2
2015 880.8
Net Income for Fiscal 2015 (C$ millions, excluding significant items)
Year Data
2011 114.1
2012 25.2
2013 25.6
2014 68.8
2015 39.3
Diluted Earnings per Share (C$, excluding significant items, fiscal years)
Year Data
2011 1.4
2012 0.25
2013 0.14
2014 0.54
2015 0.25
Geographic Distribution of Revenue (Percent of total fiscal year revenue)
2011 2012 2013 2014 2015
UK 11.5 8.8 31.3 38 32
US 13.8 13.7 19.5 25.3 23
Other 0.1 1.7 3.2 4.5 5.6
Canada 74.5 75.7 45.9 32.1 39.4
Fiscal 2015 Revenue by Division
Data
Canaccord Genuity 70
Canaccord Genuity Wealth Management 28
Corporate and Other 2

Financial Highlights

During the fiscal year, we undertook important initiatives to streamline our operations and bring sharper focus to our key areas of strength. We have carefully adjusted our operating structure to deliver the strongest benefit for our clients — and our shareholders — in an evolving market environment. These changes, in combination with our ongoing commitment to cost containment, will support improving margins and position us for future outperformance.

Since the acquisition of Collins Stewart Hawkpoint in 2012, we have effectively coordinated the capabilities of our global teams. By leveraging our expanded operations and integrated service model, we have been able to increase productivity per employee, while protecting our ability to make disciplined investments in areas that support our competitive strengths.

SELECTED FINANCIAL INFORMATION(1)(2)

SELECTED FINANCIAL INFORMATION
For the years ended March 31
(C$ thousands, except per share and % amounts, and number of employees) 2015 2014 2015/2014 change
Canaccord Genuity Group Inc. (CGGI)
Revenue
Commissions and fees $ 374,058 $ 361,647 $ 12,411 3.4%
Investment banking   238,517   221,410   17,107 7.7%
Advisory fees   151,336   139,142   12,194 8.8%
Principal trading   75,217   91,313   (16,096) (17.6)%
Interest   22,212   24,549   (2,337) (9.5)%
Other   19,423   17,183   2,240 13.0%
Total revenue   880,763   855,244   25,519 3.0%
Expenses
Incentive compensation $ 455,480 $ 413,289 $ 42,191 10.2%
Salaries and benefits   85,770   91,135   (5,365) (5.9)%
Other overhead expenses(3)   305,822   280,746   25,076 8.9%
Restructuring costs(4)   24,813   5,486   19,327 n.m.
Impairment of goodwill(5)   14,535   —   14,535 n.m.
Total expenses   886,420   790,656   95,764 12.1%
(Loss) income before income taxes   (5,657)   64,588   (70,245) (108.8)%
Net (loss) income $ (11,318) $ 52,057 $ (63,375) (121.7)%
Net (loss) income attributable to CGGI shareholders $ (13,184) $ 51,413 $ (64,597) (125.6)%
Non-controlling interests $ 1,866 $ 644 $ 1,222 189.8%
(Loss) earnings per common share (EPS) — basic $ (0.27) $ 0.42 $ (0.69) (164.3)%
(Loss) earnings per common share (EPS) — diluted $ (0.27) $ 0.39 $ (0.66) (169.2)%
Return on common equity (ROE) (2.9)% 4.4% (7.3) p.p.
Dividends per common share $ 0.25 $ 0.20 $ 0.05 25.0%
Book value per diluted common share(6) $ 8.71 $ 9.05 $ (0.34) (3.8)%
Excluding significant items(7)              
Total expenses $ 827,458 $ 770,587 $ 56,871 7.4%
Income before income taxes $ 53,305 $ 84,657 $ (31,352) (37.0)%
Net income $ 39,330 $ 68,846 $ (29,516) (42.9)%
Net income attributable to CGGI shareholders $ 36,448 $ 67,211 $ (30,763) (45.8)%
EPS — basic $ 0.27 $ 0.59 $ (0.32) (54.2)%
EPS — diluted $ 0.25 $ 0.54 $ (0.29) (53.7)%
Balance sheet data
Total assets $ 4,369,905 $ 5,014,622 $ (644,717) (12.9)%
Total liabilities   3,242,088   3,831,030   (588,942) (15.4)%
Non-controlling interests   10,275   14,912   (4,637) (31.1)%
Total shareholders’ equity   1,117,542   1,168,680   (51,138) (4.4)%
Number of employees   1,928   2,004   (76) (3.8)%

(1) Data is in accordance with IFRS except for ROE, book value per diluted common share, figures excluding significant items and number of employees. See Non-IFRS Measures on page 22 of our Management’s Discussion and Analysis (MD&A).

(2) The operating results of the Australian operations have been fully consolidated and a 40% non-controlling interest has been recognized for fiscal 2015 [fiscal 2014 and fiscal 2013 — 50%]. Results of the wealth management business of Eden Financial Ltd. since October 1, 2012 are also included.

(3) Consists of trading costs, premises and equipment, communication and technology, interest, general and administrative, amortization of tangible and intangible assets, and development costs.

(4) Consists of restructuring costs in connection with certain executive changes in our Corporate and Other segment, the closure of the Geneva office in our UK & European wealth management operations, certain real estate and office closure costs, as well as reorganization of our Canadian, UK & Europe and US capital markets operations. Fiscal 2014 restructuring costs include expenses mainly in connection with restructuring of our sales and trading operations in Canada and the UK & Europe, and certain office closure costs.

(5) Impairment of goodwill in connection with our Singapore- and China-based operations.

(6) Book value per diluted common share is calculated as total common shareholders’ equity divided by the number of diluted common shares outstanding and, commencing in fiscal 2014, adjusted for shares purchased under the normal course issuer bid and not yet cancelled, and estimated forfeitures in respect of unvested share awards under share-based payment plans.

(7) Net income and earnings per common share excluding significant items reflect tax-effected adjustments related to such items. See the Selected Financial Information Excluding Significant Items table on page 31 of our MD&A.

n.m.: not meaningful

p.p.: percentage points

Employees by Geography (As at March 31, 2015)
Region Data
Canada 48%
UK & Europe 33%
US 14%
Asia-Pacific 5%
Employees by Division (As at March 31, 2015)
Divison Data
Canaccord Genuity 46%
Canaccord Genuity Wealth Management 37%
Corporate and Other 17%
Canaccord Genuity Group Inc. Revenue per Employee (C$ thousands, fiscal years)
Year Data
2013 $387.0
2014 $426.8
2015 $456.8
Canaccord Genuity Revenue per Employee (C$ thousands, fiscal years)
Year Data
2013 $556.0
2014 $632.2
2015 $680.5
Canaccord Genuity Wealth Management Revenue per Employee (C$ thousands, fiscal years)
Year Data
2013 $305.7
2014 $315.2
2015 $359.3

About Canaccord Genuity Group Inc.

Through its principal subsidiaries, Canaccord Genuity Group Inc. (the Company) is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has offices in 10 countries worldwide, including wealth management offices located in Canada, Australia, the UK, Guernsey, Jersey and the Isle of Man. Canaccord Genuity, the international capital markets division, operates in Canada, the US, the UK, France, Ireland, Hong Kong, China, Singapore, Australia and Barbados. To us there are no foreign markets.™

Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX and the symbol CF. on the London Stock Exchange.

Member of the S&P/TSX Composite Index.

logo-genuity

Canaccord Genuity offers corporations and institutional investors around the world an integrated platform for equity research, sales and trading, and investment banking services that is built on extensive operations in Canada, the US, the UK, France, Ireland, Hong Kong, China, Singapore, Australia and Barbados.

logo-genuity

Canaccord Genuity Wealth Management provides comprehensive wealth management solutions and brokerage services to individual investors, private clients, charities and intermediaries through a full suite of services tailored to the needs of clients in each of its markets. The Company’s wealth management division now has Investment Advisors (IAs) and professionals in Canada, Australia, the UK, Guernsey, Jersey and the Isle of Man.

logo-genuity

Canaccord Genuity Correspondent Services provides trade execution, clearing, settlement, custody, and other middle- and back-office services to introducing brokerage firms, portfolio managers and other financial intermediaries. The business unit was developed as an extension and application of Canaccord Genuity Group Inc.’s substantial investment in its information technology and operating infrastructure.

North America

Toronto
New York
Boston
Chicago
Houston
Minneapolis
Nashville

 

San Francisco
Vancouver
Burlington
Calgary
Edmonton
Gatineau
Halifax

 

Kelowna
Kitchener
Montréal
Prince George
Trail
Waterloo
Barbados

UK & Europe

London
Dublin
Guernsey
Isle of Man
Jersey
Paris

ASIA-Pacific

Beijing
Hong Kong
Melbourne
Singapore
Sydney