Stephen MacPhail, President & CEO Doug Jamieson, Executive Vice-President & CFO Derek Green, President, CI Investments Steven Donald, President, Assante Wealth Management November 6, 2014
Important Information This presentation contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI and its products and services, including its business operations, strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. For further information regarding factors that could cause actual results to differ from expectations, please refer to Management s Discussion and Analysis available at www.cifinancial.com. This presentation contains several non-ifrs financial measures including EBITDA, pre-tax operating earnings, free cash flow, operating cash flow, net debt, asset management margin and SG&A efficiency margin, 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 and reconciliations to IFRS, where necessary, are included in Management s Discussion and Analysis available at www.cifinancial.com.
Page 1 CIX Historical Performance (Total returns from IPO to October 31, 2014) CIX +4,274% 20% CAGR Financial Services +1,556% 100 June 1994 October 2014 TSX +460% Fourth best performing stock on TSX since 1994 & Top 10, last 16 years
Page 2 Quarterly Highlights EPS of $0.48, up 26% from $0.38 in Q3-2013 EPS up 7% from $0.45 in previous quarter Q3 average AUM up 20% year over year, up 3% from Q2-2014 Retail net sales in Q3-2014 17% higher than Q3-2013 Net debt down 45% from Q3-2013, down 13% from prior quarter Dividend increased to $0.105/month, 3rd increase in 12 months
Page 3 Wealth Professional 2014 Advisor Report CI ranked #1 overall in Canada versus banks, fundco s and insurance companies In 10 categories such as service, product range, processing accuracy, technology, advisor support, performance, etc., CI ranked #1 or #2 in 80% and ranked top 3 in 100%, of the categories Top ranking reflects CI culture of service and advisor focus
Page 4 Sales Overview YTD gross sales of $11.0 billion, 6% higher than 2013 YTD net sales of $3.4 billion, 15% higher than 2013 Q3 retail net sales highest in over a decade Sales well diversified by channel Since 1994, CI achieved positive net sales in 88% of all quarters, highest rank in Canada
Page 5 Sales Outlook Over 1000 advisors at 2014 Leadership Forum Over half of CI s long-term AUM is 1st or 2nd quartile year-to date, over 1 year, over 3 years, and over 5 years 79% of CI s long-term AUM 1st or 2nd quartile over 10 years
Page 6 Product Shifts Managed Solutions / PIM increasing share Traditional Funds maintaining share Segregated Funds losing share
Page 7 Asset Class Managed Solutions Income Global Balanced Global Emerging Markets American Sector Canadian Canadian Balanced } } } increasing share maintaining share losing share
Page 8 Assante Wealth Management Stonegate Private Counsel $31 billion assets Record inflows Regulatory change Wealth planning support Continuing investment - Expertise - Technology - Branding
Page 9 Financial Highlights (year-over-year) [millions, except per share] Q3-2014 Q3-2013 Change Average AUM $101,016 $84,125 20% Net Income 1 $135.1 $107.8 25% per share $0.48 $0.38 26% EBITDA per share $0.81 $0.68 19% Dividends paid $85.3 $76.6 11% Net debt 2 $220.2 $403.7-45% 1 Not including non-controlling interests 2 Net of excess cash and marketable securities
Page 10 Financial Highlights (consecutive) [millions, except per share] Q3-2014 Q2-2014 Change Average AUM $101,016 $97,895 3% Net Income 1 $135.1 $127.8 6% Earnings per share $0.48 $0.45 7% EBITDA 1 $230.8 $221.5 4% per share $0.81 $0.78 4% Dividends paid $85.3 $82.6 3% Net debt 2 $220.2 $252.6-13% 1 Not including non-controlling interests 2 Net of excess cash and marketable securities
Page 11 EBITDA Margin (% of total revenues) 50% 49% 48% 47.6% 47.6% 47.7% 47.8% 48.0% 47% 46% 45% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
Page 12 Asset Management Margin (Management fees less trailers, SG&A and DSC as a percentage of management fees) 45% 44% 43% 42% 41% 40% 39.2% 39.8% 40.3% 40.9% 41.5% 39% 38% 37% 36% 35% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
Page 13 Total SG&A (in basis points) 38 37 36 37.0 36.9 36.3 35 34.8 34 33.8 33 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
Page 14 SG&A Efficiency Margin (Management fees less trailers, DSC and SG&A as a percentage of management fees less trailers and DSC) 75% 74% 73% 72% 71% 70% 69% 68.5% 69.0% 69.6% 70.3% 71.0% 68% 67% 66% 65% Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
Page 15 Quarterly Free Cash Flow (in $millions) 150 148 145 140 138 135 130 125 120 119 124 123 115 110 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14
Page 16 Return to Shareholders [in $millions] Q3-2014 Q2-2014 Operating cash flow 173 168 Sales commissions (25) (30) Free cash flow 148 138 Share buybacks (56) (5) Dividends (85) (83) Net surplus 7 50
Page 17 Trailing 12-Month Return on Equity 30% 25% 24% 24% 25% 26% 27% 20% 15% 10% 5% 0% Q1-14 Q3-13 Q2-14 Q4-13 Q3-14
Page 18 Annual Dividends Paid (in $millions) 350 300 250 220 11% CAGR 254 269 298 335 200 150 100 50 2010 2011 2012 2013 2014 (f)
Page 19 Assets Under Management (in $millions) 105,000 Avg. AUM 81,691 Avg. AUM 84,125 Avg. AUM 88,558 Avg. AUM 93,488 Avg. AUM 97,895 Avg. AUM 101,016 100,000 95,000 90,000 85,000 Increase to $1.20 dividend Increase to $1.26 dividend 80,000 Increase to $1.14 dividend 75,000 Increase to $1.08 dividend 70,000 Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 2013 2014
Page 20 Outlook YTD gross and net retail sales levels are ahead of 2013 Equity-oriented and balanced investments increasing Leader in helping advisors adapt to regulatory change Continued focus on comprehensive service Ongoing money management talent enhancement
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