Global Performance Highlights

Fiscal 2016 was a year during which activity levels in our core markets continued to be impacted by slowing global growth and depressed energy and commodity prices. A prolonged volatile market environment affected performance across our global capital markets operations and our Canadian wealth management operations. While we achieved healthy revenue against this backdrop, our performance was also impacted by our efforts to refocus our global operations. During the second half of the fiscal year, we took steps to rationalize our global infrastructure and exit underperforming business lines, so we could significantly reduce our fixed cost base and stabilize our business for future performance.

Revenue (C$ millions, fiscal years)
Year	Data
2012	604.9
2013	797.1
2014	855.2
2015	880.8
2016	787.7

Net (loss) (C$ millions, excluding significant items, fiscal years)
Year	Data
2012	25.2
2013	25.6
2014	68.8
2015	39.3
2016	(6.0)

Diluted (loss) Earnings per Share (C$, excluding significant items, fiscal years)
Year	Data
2012	0.25
2013	0.14
2014	0.54
2015	0.25
2016	(0.21)

Geographic Distribution of Revenue (Percent of total fiscal year revenue)
	2012	2013	2014	2015
UK	8.8	31.3	38	32
US	13.7	19.5	25.3	23
Asia-Pacific	1.7	3.2	4.5	5.6
Canada	75.7	45.9	32.1	39.4

Fiscal 2016 Revenue by Division
	Data
Canaccord Genuity	68¹
Canaccord Genuity Wealth Management	31
Corporate and Other	1
Includes Australia Wealth Management.

Revenue
Year	Data
2012	$564.2
2013	$766.9
2014	$770.6
2015	$827.5
2016	$793.9

Financial Highlights

Throughout the fiscal year, numerous cyclical factors and persistent broad market volatility materially impacted our industry and continued to put pressure on activity levels in many areas of our business. We used this period productively, to restructure and refocus our global operations for long term success. During the fiscal year, we made steady progress in reducing general and administrative, communication and technology and trading costs across our operations, and we have taken steps to focus our business in the areas where we can enhance productivity and achieve dominance as an independent mid-market global investment bank and wealth management firm.

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)	2016		2015		2014		2016/2015 change
Canaccord Genuity Group Inc. (CGGI)
Revenue
Commissions and fees	$	376,817	$	374,058	$	361,647	$	2,759	0.7%
Investment banking		134,207		238,517		221,410		(104,310)	(43.7)%
Advisory fees		158,002		151,336		139,142		6,666	4.4%
Principal trading		85,559		75,217		91,313		10,342	13.7%
Interest		16,830		22,212		24,549		(5,382)	(24.2)%
Other		16,390		19,423		17,183		(3,033)	(15.6)%
Total revenue		787,805		880,763		855,244		(92,958)	(10.6)%
Expenses
Incentive compensation		417,876		455,480		413,289		(37,604)	(8.3)%
Salaries and benefits		92,981		85,770		91,135		7,211	8.4%
Other overhead expenses⁽³⁾		302,530		305,822		280,746		(3,292)	(1.1)%
Restructuring costs⁽⁴⁾		17,352		24,813		5,486		(7,461)	(30.1)%
Impairment of goodwill and other assets⁽⁵⁾		321,037		14,535		—		306,502	n.m.
Total expenses		1,151,776		886,420		790,656		265,356	29.9%
(Loss) income before income taxes		(363,971)		(5,657)		64,588		(358,314)	n.m.
Net (loss) income	$	(358,567)	$	(11,318)	$	52,057	$	(347,249)	n.m.
Net (loss) income attributable to CGGI shareholders	$	(358,471)	$	(13,184)	$	51,413	$	(345,287)	n.m.
Non-controlling interests	$	(96)	$	1,866	$	644	$	(1,962)	(105.1)%
(Loss) earnings per common share (EPS) – basic	$	(4.09)	$	(0.27)	$	0.42	$	(3.82)	n.m.
(Loss) earnings per common share – diluted	$	(4.09)	$	(0.27)	$	0.39	$	(3.82)	n.m.
Return on common equity (ROE)		(50.4)%		(2.9)%		4.4%		(47.5) p.p.
Dividends per common share	$	0.10	$	0.25	$	0.20	$	(0.15)	(60.0)%
Book value per diluted common share⁽⁶⁾	$	4.99	$	8.71	$	9.05	$	(3.72)	(42.7)%
Excluding significant items⁽⁷⁾
Total expenses	$	793,862	$	827,458	$	770,587	$	(33,596)	(4.1)%
(Loss) income before income taxes	$	(6,057)	$	53,305	$	84,657	$	(59,362)	(111.4)%
Net (loss) income	$	(5,995)	$	39,330	$	68,846	$	(45,325)	(115.2)%
Net (loss) income attributable to CGGI shareholders	$	(6,620)	$	36,448	$	67,211	$	(43,068)	(118.2)%
Net income attributable to non-controlling interests	$	625	$	2,882	$	1,635	$	(2,257)	(78.3)%
(Loss) earnings per common share – diluted	$	(0.21)	$	0.25	$	0.54	$	(0.46)	(184.0)%
Balance sheet data
Total assets	$	3,424,546	$	4,369,905	$	5,014,622	$	(945,359)	(21.6)%
Total liabilities		2,665,895		3,242,088		3,831,030		(576,193)	(17.8)%
Non-controlling interests		8,722		10,275		14,912		(1,553)	(15.1)%
Total shareholders’ equity		749,929		1,117,542		1,168,680		(367,613)	(32.9)%
Number of employees		1,795		1,928		2,004		(133)	(6.9)%

(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 30 of our Management’s Discussion and Analysis (MD&A).

(2) The operating results of the Australian operations have been fully consolidated and a 42% non-controlling interest has been recognized for fiscal 2016 [fiscal 2015 − 40% and fiscal 2014 − 50%].

(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) Restructuring costs for the year ended March 31, 2016 were related to the staff reductions in our US, Canada and UK capital markets operations and the closure of our Barbados office in Other Foreign Locations, as well as charges related to staff reductions and certain executive changes in our Corporate and Other segment. Fiscal 2015 restructuring costs were 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 the 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 and other assets for the year ended March 31, 2016 was in connection with our UK, US and Canada capital markets and our Other Foreign Locations − Singapore and Australia operations. Impairment of goodwill for the year ended March 31, 2015 is 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 including estimated amounts in respect of share issuance commitments and 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 (loss) income and (loss) 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 38 of our MD&A.

n.m.: not meaningful

p.p.: percentage points

Global Performance Highlights

Introduction

Financial Highlights

SELECTED FINANCIAL INFORMATION⁽¹⁾⁽²⁾

About Canaccord Genuity Group Inc.

Employees by Geography (As at March 31, 2016)
Region	Data
Canada	46%
UK & Europe	33%
US	16%
Asia-Pacific	5%

Global Performance Highlights

Introduction

Financial Highlights

SELECTED FINANCIAL INFORMATION(1)(2)

About Canaccord Genuity Group Inc.

SELECTED FINANCIAL INFORMATION⁽¹⁾⁽²⁾