Stephen MacPhail, President & CEO Doug Jamieson, Executive Vice-President & CFO Derek Green, President, CI Investments Steven Donald, President, Assante Wealth Management February 12, 2015
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 January 31, 2015) CIX +4,266% 20% CAGR Financial Services +1,478% TSX +467% 100 June 1994 January 31, 2015 Sixth best performing stock on TSX since 1994 & Top 10, last 16 years
Page 2 2014 Highlights 2014 EPS of $1.85, up 23% from $1.50 in 2013 Q4-2014 EPS of $0.50, up 22% from $0.41 in Q4-2013 CI AUM of $102.9 billion, up 13% from 2013 Assante and Stonegate Private Counsel assets of $32 billion, up 11% from 2013 2014 net sales of $3.9 billion compared to $3.7 billion in 2013 Net debt down 41% from 2013 to $185 million Dividend increased twice in 2014, now $0.105 per month
Page 3 Sales Overview Full-year gross sales of $14.4 billion, 4% higher than 2013 Full-year net sales of $3.9 billion, 7% higher than 2013 2014 net sales highest in well over a decade Since 1994, CI achieved positive net sales in 88% of all quarters
Page 4 Strong Performance Over half of CI s long-term AUM is 1st or 2nd quartile over 1, 3 and 5 years 76% of CI s long-term AUM 1st or 2nd quartile over 10 years 100% of CI s managed solutions AUM 1st or 2nd quartile over 10 years Most Morningstar four and five-star rated funds in 2014 Continue to build brand and deliver premier advisor education events
Page 5 Regulatory Opportunities Vision Execution Industry shifting to fee disclosed business 27% of CI AUM is fee disclosed
Page 6 Assante Wealth Management Stonegate Private Counsel $32 billion in assets Record inflows Wealth planning support Continuing investment: - Expertise - Technology - Branding Regulatory change
Page 7 Financial Highlights (year-over-year) [millions, except per share] Q4-2014 Q4-2013 Change Average AUM $101,120 $88,558 14% Net Income 1 $140.4 $116.2 21% per share $0.50 $0.41 22% EBITDA per share $0.82 $0.72 14% Dividends paid $86.3 $78.1 10% Long-term debt $307.4 $498.9-38% Net debt $185.2 $315.3-41% 1 Excluding non-controlling interests
Page 8 Financial Highlights (consecutive) [millions, except per share] Q4-2014 Q3-2014 Change Average AUM $101,120 $101,016 0% Net Income 1 $140.4 $135.1 4% Earnings per share $0.50 $0.48 4% EBITDA $230.0 $230.8 0% per share $0.82 $0.81 1% Dividends paid $86.3 $85.3 1% Long-term debt $307.4 $499.3-38% Net debt $185.2 $220.2-16% 1 Excluding non-controlling interests
Page 9 EBITDA Margin (% of total revenues) 50% 49% 48% 47.6% 47.6% 47.7% 48.0% 47.9% 47% 46% 45% Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Page 10 Asset Management Margin (Management fees less trailers, SG&A and DSC as a percentage of management fees) 45% 44% 43% 42% 41% 40% 39.8% 40.3% 40.9% 41.5% 42.0% 39% 38% 37% 36% 35% Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Trailing twelve months
Page 11 Total SG&A (in basis points) 40 39 38 37 36.9 36.3 36 35 34 34.8 33.8 34.1 33 32 31 30 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Page 12 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% 69.0% 69.6% 70.3% 71.0% 71.5% 68% 67% 66% 65% Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Trailing twelve months
Page 13 Quarterly Free Cash Flow (in $millions) 150 148 148 145 140 138 135 130 125 124 123 120 115 110 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Page 14 Return to Shareholders [in $millions] Q4-2014 Q3-2014 Cash provided by operating activities 187 201 Operating cash flow 172 173 Sales commissions (24) (25) Free cash flow 148 148 Share buybacks (38) (56) Dividends (86) (85) Net surplus 24 7
Page 15 Trailing 12-Month Return on Equity 30% 25% 24% 25% 26% 27% 28% 20% Q4-13 Q1-14 Q2-14 Q3-14 Q4-14
Page 16 Annual Dividends Paid (in $millions) 350 300 250 220 11% CAGR 254 269 298 336 200 150 100 50 2010 2011 2012 2013 2014
Page 17 Assets Under Management (in $millions) 110,000 Avg. AUM 84,125 Avg. AUM 88,558 Avg. AUM 93,488 Avg. AUM 97,895 Avg. AUM 101,016 Avg. AUM 101,120 105,000 Current assets up 6% from Q4-2014 average 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 Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 2013 2014 2015
Page 18 Outlook Current AUM of $107 billion up 6% from Q4-2014 average Investor interest in equity-oriented investments continuing Good market performance positive for sales outlook CI continues to focus on regulatory change, comprehensive service and money management depth and diversity Environment positive for profitability and dividend growth, share buybacks and debt reduction
Thank You