IGM FINANCIAL Scotia Capital Financials Summit September 9, 2008
Caution Concerning Forward Looking Statements This presentation may contain forward-looking statements about IGM Financial, including its business operations, strategy and expected financial performance and condition. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as expects, anticipates, plans, believes, estimates, intends, targets, projects, forecasts or negative versions thereof and other similar expressions, or future or conditional verbs such as may, will, should, would and could. In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Company action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to, but not limited to, important factors such as general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, the effect of applying future accounting changes, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete strategic transactions and integrate acquisitions and the Company s success in anticipating and managing the foregoing risks. The reader is cautioned that the foregoing list of important factors is not exhaustive. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company has no specific intention to update any forward-looking statements whether as a result of new information, future events or otherwise. 1
Non-GAAP Financial Measures This presentation may also contain non-gaap financial measures. Non-GAAP financial measures are used to provide management and investors with additional measures of performance. However, we caution that non-gaap financial measures do not have standard meanings prescribed by GAAP and are not directly comparable to similar measures used by other companies. Specific instances of such measures that may be referred to within this document include Adjusted Net Income and Adjusted Earnings Per Share. We refer you to the appropriate reconciliation of these non-gaap measures to measures prescribed by GAAP which are noted where these non-gaap measures are presented. 2
IGM Financial Public Disclosures Please refer to the following documents relating to IGM Financial for a more comprehensive summary of the corporation s business and results: Interim reports for the quarters ended March 31, 2008 and June 30, 2008 2007 Annual Report 2007 Annual Information Form Press releases subsequent to June 30, 2008 Takeover bid circular related to the acquisition of Saxon Financial Inc. issued on August 19, 2008 These documents are available on the Company s website at www.igmfinancial.com and/or at www.sedar.com. 3
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 4
Overview IGM Financial manufactures and distributes financial products and services through its subsidiaries. Listed on TSX with ticker symbol IGM Market Capitalization of $11.7 billion Float of $4.8 billion Dividend yield of 4.6% 1 1,2 $105 billion of mutual fund AUM and $118 billion of total AUM. Broad and diversified distribution, with an emphasis on financial advisors. Part of the Power Financial group of companies, which includes Great West Life, London Life, Canada Life and Putnam Investments. 1 1 1. At August 31, 2008 2. IGM Financial s dividend yield is among the top 15 common shares included in the S&P TSX Index. 5
Leading Scale in Mutual Fund Management IGM Financial is the largest long term mutual fund manager in Canada. Long Term Mutual Fund Assets Under Management at June 30, 2008 ($ Billions) 100.4 85.5 60.2 23.7 26.7 34.1 37.5 41.5 43.2 44.0 FT AGF BMO AIM CIBC Fidelity TD CI RBC IGM Source IFIC BMO has been adjusted to include Guardian. RBC includes Phillips, Hager & North. 6
Operating Companies IGM Financial operates through three subsidiaries and has consolidated assets under management of approximately $120 billion. 1 At June 30, 2008 Financial Planners > 4,300 Investors Group Consultants > 30,000 third party planners and brokers > 700 Financial Planners Assets Under Management $59.0 billion $61.2 billion $2.1 billion Client Assets Under Administration $61.2 billion $64.7 billion $12.8 billion 1. After adjusting to eliminate double-counting of assets included within more than one subsidiary, IGM Financial s consolidated assets under management were $119.7 billion and consolidated assets under administration were $132.9 billion at June 30, 2008. 7
Diversified Business Structure IGM Financial enjoys broad and diversified distribution and investment management capabilities. Distribution: Investors Group (exclusive financial planners) Mackenzie (third party financial planners, brokers, insurers, banks, institutional) Investment Planning Counsel (financial planners) Investment management: By asset class, sector / specialty and geography By investment team and style Multiple internal investment management teams supplemented by external relationships where appropriate By brand (exclusive brands, co-brands) multiple brands within each distribution channel By product type mutual funds, asset allocation, segregated funds, structured products, tax-advantaged and charitable giving 8
Operating Highlights Assets by Subsidiary IGM Financial s operating subsidiaries have experienced declines in AUM during the last year due to equity market downturns. Assets Under Management ($ Billions) Jun 30, 2007 Sep 30, 2007 Dec 31, 2007 Mar 31, 2008 Jun 30, 2008 Year-over- Year Change IGM Financial 125.9 124.2 123.0 119.0 119.7 (4.9%) Investors Group 61.3 61.2 60.2 58.6 59.0 (3.8%) 1, 2 Mackenzie 65.0 63.5 63.3 60.9 61.2 (5.8%) 1 Counsel Group of Funds 2.3 2.3 2.3 2.2 2.1 (7.6%) 1. Includes certain items not included within reporting to the Investment Funds Institute of Canada ( IFIC ). These items include the Mackenzie Alternative Strategies Fund and investments of certain Counsel funds in the units of mutual funds managed by other members of IFIC. 2. Includes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group or Counsel Fund Management. These mandates had assets under management of $2.6 billion at June 30, 2008. 9
IGM Financial Assets Under Management 130 125 IGM Financial has experienced growth in both mutual fund and institutional mandates. IGM Financial Assets Under Management ($ Billions) Total 120 115 $ 118.2 billion at August 31, 2008 110 105 $104.7 billion at August 31, 2008 100 95 90 85 Mutual Funds Annual Average Quarterly Average 80 Dec- 04 Mar- 05 Jun- 05 Sep- 05 Dec- 05 Mar- 06 Jun- 06 Sep- 06 Dec- 06 Mar- 07 Jun- 07 Sep- 07 Dec- 07 Mar- 08 Jun- 08 Sep- 08 Dec- 08 1. Includes institutional assets of the Cundill Group effective September 22, 2006 ($3.3 billion at time of acquisition) 10
Operating Highlights Gross Sales IGM Financial gross sales of investment products were $20 billion during 2007 and are $10 billion through the first six months of 2008. IGM Financial Gross Sales ($ Millions) Twelve Months Ended December 31, 2007 Six Months Ended June 30, 2008 Investors Group Mackenzie Counsel IGM Financial Investors Group Mackenzie Counsel IGM Financial Long term mutual funds 6,009 6,357 330 12,696 2,700 3,458 125 6,283 Short term mutual funds 1,220 2,096 34 3,350 710 943 22 1,676 Total mutual funds 7,229 8,453 364 16,046 3,410 4,401 147 7,958 1 Institutional 4,235 3,810 2,063 1,927 2 1 2 1 Total 7,229 12,688 364 19,856 3,410 6,464 147 9,885 2 1 2 1. Includes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group. These mandates had gross sales of $136 million during the six months ended June 30, 2008 and $425 million during the twelve months ended December 31, 2007. 2. Excludes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group. 11
Operating Highlights Net Sales IGM Financial net sales of investment products were $3.2 billion during 2007 and are $547 million through the first six months of 2008. IGM Financial Net Sales ($ Millions) Twelve Months Ended December 31, 2007 Six Months Ended June 30, 2008 Investors Group Mackenzie Counsel IGM Financial Investors Group Mackenzie Counsel IGM Financial Long term mutual funds 1,702 (170) 118 1,650 281 (378) (33) (130) Short term mutual funds 456 81 21 558 223 6 11 240 Total mutual funds 2,158 (89) 139 2,208 504 (372) (22) 110 1 Institutional 1,119 943 469 437 2 1 2 1 Total 2,158 1,030 139 3,151 504 97 (22) 547 2 1 2 1. Includes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group. These mandates had net sales of $32 million during the six months ended June 30, 2008 and $176 million during the twelve months ended December 31, 2007. 2. Excludes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group. 12
Financial Highlights The financial performance of IGM Financial continues to strengthen. Twelve months ended December 31 Six months ended June 30 2006 2007 Change 2007 2008 Change 1,2 Adjusted Net Income ($ MM) 763 864 13.2% 426 427 0.2% 1,2 Adjusted Earnings Per Share ($) 2.85 3.23 13.3% 1.59 1.61 1.3% Dividends Per Share ($) 1.535 1.775 15.6% 0.855 0.975 14.0% 1. The six month period ended June 30, 2008 has been adjusted to exclude $25.0 million which represented the Company s proportionate share of the after-tax gain on Great West Lifeco Inc s sale of its healthcare business, Great- West Healthcare. 2. Adjusted Earnings Per Share and Adjusted Net Income for the years ended December 31, 2006 and December 31, 2007 exclude a non-cash income tax benefit of $13.7 million (5 cents per share) and $15.3 million (6 cents per share) respectively, resulting from decreases in the federal corporate tax rates and their effect on the future income tax liability related to indefinite life intangible assets arising from the acquisition of Mackenzie Financial Corporation in 2001. 13
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 14
Attractive Industry High growth rate Demographics support continued savings, with increasing number of babyboomers in prime savings years of 40-65 years old. Built in growth through investment returns. Institutional and retail growth. Investors desire advice Approximately 85% of Canadians using mutual funds rely on an advisor. Financial planning needs of baby-boomers are evolving and increasing in complexity. Significant advantages to industry incumbents Scale, brand, distribution 1 1. Investment Funds Institute of Canada mutual fund investor survey (2006 and 2007). 15
Operating Environment Sales Mix Balanced funds continue to represent a prominent component of industry net flows. Income-oriented funds had positive net flows during Q2, 2008. Canadian Mutual Fund Industry Long Term Mutual Fund Net Sales ($ Billions) Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Q3, 2007 Q4, 2007 Q1, 2008 Q2, 2008 Income-oriented 5.7 1.3 1.4 2.4 3.4 2.0 0.3 (0.1) (0.1) 1.1 Share 51% 57% 228% 46% 23% 30% 11% (10%) 13% 165% Balanced 4.0 1.6 0.8 2.3 6.1 3.6 2.3 2.0 1.6 2.1 Share 36% 74% 134% 45% 41% 52% 79% 155% (166%) 314% Equity 1.5 (0.7) (1.6) 0.4 5.3 1.2 0.3 (0.6) (2.5) (2.5) Share 13% (31%) (262%) 9% 36% 18% 10% (45%) 254% (378%) Total 11.2 2.2 0.6 5.1 14.8 6.8 2.9 1.3 (1.0) 0.7 Source: IFIC Classifications are based upon CIFSC categories. Money Market, U.S. Money Market, and Specialty and Miscellaneous categories have been excluded. This equates to excluding the Money Market and Mortgage categories used by IFIC. 16
Operating Environment Sales Mix Global and foreign funds continue to represent the majority of net sales into balanced and equity funds. Canadian Mutual Fund Industry Mutual Fund Net Sales into Balanced & Equity Funds ($ Billions) Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Q3, 2007 Q4, 2007 Q1, 2008 Q2, 2008 Domestic 2.7 (0.3) (0.9) (0.6) 2.1 0.5 (0.0) 0.0 (0.9) (0.6) Share 49% (29%) 116% (20%) 18% 10% (1%) 1% 107% 136% Global / foreign 2.8 1.2 0.1 3.3 9.4 4.3 2.6 1.4 0.1 0.2 Share 51% 129% (16%) 120% 82% 90% 101% 99% (7%) (36%) Total Balanced & Equity 5.5 0.9 (0.8) 2.7 11.5 4.8 2.6 1.4 (0.9) (0.4) % of long term funds 49% 41% (133%) 53% 78% 71% 89% 111% 86% (65%) Source: IFIC Classifications are based upon CIFSC categories. Money Market, U.S. Money Market, and Specialty and Miscellaneous categories have been excluded. This equates to excluding the Money Market and Mortgage categories used by IFIC. 17
Operating Environment Financial Markets Asset values on global markets have declined to an even greater degree than the Canadian S&P TSX Index. Canadian Mutual Fund Industry Long Term Mutual Fund Assets Under Management ($ Billions) 700 Year to date at August 31, 2008 S&P / TSX Composite IFIC Long Term Assets (2.0%) 1 S&P / TSX Composite (0.4%) 600 S&P 500 (12.6%) Dow Jones Industrial (13.0%) Nasdaq Composite (10.7%) 500 FTSE 100 (12.7%) IFIC Long Term Assets Under Management DAX (20.4%) Nikkei 225 (14.6%) 400 US dollar relative to CAD 6.6% Dec- 04 Jun- 05 Dec- 05 Jun- 06 Dec- 06 Jun- 07 Dec- 07 Jun- 08 Dec- 08 Euro relative to CAD 7.2% 1. As at June 30, 2008 Source: IFIC, Bloomberg All index returns are local market returns, not Canadian dollar (except S&P / TSX Composite) 18
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 19
Investors Group Investors Group provides comprehensive financial planning through its network of over 4,300 Consultants. Product Offering Investment management Extensive mutual fund offering Support Platform Regional offices located throughout Canada Masterseries TM brand External brands Symphony TM asset allocation Insurance Securities Banking Consultant - Client Relationship Comprehensive Financial Planning Industry-leading training Advanced financial planning Product specialists Marketing 20
Investors Group Emphasis Enduring client relationships Financial planning heritage Long term Consultant / client relationship Entrepreneurial Strong culture Community involvement / people who care Solid growth Strong client & Consultant loyalty Regional office, field management and recruiting expansion Efficient operations 21
Investors Group Consultant Network The Investors Group Consultant Network is at a record high of 4,360 at June 30, 2008, having had growth for 16 consecutive quarters. Number of Investors Group Consultants Since Since June June 30, 30, 2004 2004 Consecutive Consecutive growth growth for for 16 16 quarters quarters 1,153 1,153 net net additional additional Consultants Consultants An An increase increase of of 36% 36% 3,860 3,917 3,985 4,093 4,225 4,331 4,342 4,360 3,766 3,668 3,676 3,391 3,496 3,503 3,537 3,560 3,207 Q2, 2004 Q3, 2004 Q4, 2004 Q1, 2005 Q2, 2005 Q3, 2005 Q4, 2005 Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Q3, 2007 Q4, 2007 Q1, 2008 Q2, 2008 22
Investors Group Asset Retention Driven by strong retention of Consultants and Clients, Investors Group s industry-leading long term mutual fund redemption rate continues to be near its all-time record low of 7.3% at December 31, 2007. Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 18% 16% 14% 12% 10% 8% 16.0% 7.6% Industry (IFIC) excluding Investors Group Investors Group 2 1 6% Dec- 00 Dec- 01 Dec- 02 Dec- 03 Dec- 04 Dec- 05 Dec- 06 Dec- 07 Dec- 08 Source - IFIC 1. Numbers have been retroactively restated to exclude Maxxum redemptions (Maxxum operations were transferred to Mackenzie October 5, 2001) 2. Industry has been adjusted to exclude redemptions of $2.7 billion relating to the re-balancing of one institutional investor during June, 2008. 23
Investors Group Mutual Fund Sales Mutual Fund Gross Sales Six Months Ended June 30 ($ Millions) Mutual Fund Net Sales Six Months Ended June 30 ($ Millions) 3,999 3,410 1,402 504 2007 2008 2007 2008 24
Investors Group Investment Management Investors Group s investment management teams are located in North America, Europe and Asia. Montreal Winnipeg Toronto Dublin Hong Kong 25
Investors Group Investment Performance Strong long term risk-adjusted investment performance by the Investors Group Investment Management team is demonstrated by 75% of our Masterseries funds being rated 3, 4 or 5 star by Morningstar. Morningstar Ratings at June 30, 2008 Proportion of Morningstar-rated funds 44% 25% 32% 36% 31% 32% Investors Group Masterseries All Morningstar- Rated Funds 1 & 2 Stars 3 Stars 4 & 5 Stars Source - Morningstar 26
Investors Group Management Focus 1. Growing the Investors Group Consultant Network 16 consecutive quarters of growth since June 30, 2004 24 new regional offices have been added in the last 4 years, up 35% to a total of 91 regional offices across Canada Consultant and client retention remains strong industry-leading long term mutual fund redemption rate of 7.6% 2. Building upon Investors Group s strong culture and heritage 3. Enhancing Investors Group s product and service offering to clients Expansion of our socially responsible investing fund mandates within the Summa Fund Family Recent fund launches: Investors Global Real Estate Fund, Alto Monthly Income and Global Growth Portfolio, IG Putnam U.S. High Yield Income Fund, IG Mackenzie Global Precious Metals Class Insurance and banking product emphasis 27
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 28
Mackenzie Mackenzie is one of Canada s premier investment managers. Investment Management Retail mutual funds Extensive mutual fund offering Sub-branding approach In-house and external investment talent Symmetry TM and Keystone asset allocation Segregated funds Structured products Advisor Relationships Financial Planners Retail Brokers Insurance Agents Service Platform Experienced wholesaling team located across Canada Client-focused culture Systems & technology infrastructure Advisor education Support services Securities Banking Administration 29
Mackenzie Asset Management Mackenzie continues to experience strong growth in assets under management. Mackenzie Assets Under Management ($ Billions) At December 31, unless otherwise noted 61.5 63.3 73.2 11.3 Institutional - Saxon 3 3.3 37.1 42.3 5.0 49.9 8.3 14.9 16.7 16.3 2.1 Institutional, subadvised & other 1 Mutual funds - Saxon 3 33.8 37.3 41.6 46.6 46.6 43.6 Mutual funds 2 2003 2004 2005 2006 2007 Pro Forma August 2008 3 Institutional % of AUM 9% 12% 17% 24% 26% 38% 1. Includes assets relating to sub-advisory mandates to mutual funds managed by Investors Group or Counsel Fund Management. 2. Includes Mackenzie Alternative Strategies Fund (this fund is not reported within IFIC numbers). 3. Adjusted to include assets under management of Saxon Financial Inc. of $13.4 billion as at June 30, 2008. Includes Saxon mutual fund assets of $2.1 billion and institutional, sub-advised & other assets of $11.3 billion. Anticipated transaction close of September 25, 2008. 30
Mackenzie Emphasis Investment Management Investment performance Diversification Capabilities, processes & talent Distribution Wholesaling capabilities and relationships Alternative distribution channels Product innovation Customer Service Advisor & dealer support Client / investor support (tax / estate) Training & technology 31
Mackenzie Sales Gross Sales of Investment Products Six months ended June 30 ($ Millions) 1,2 1,2 Net Sales of Investment Products Six months ended June 30 ($ Millions) 6,952 6,464 1,314 2,185 2,063 943 1,169 3,598 917 3,484 203 168 469 (365) 97 (7) 2007 2008 2007 2008 1. Institutional, sub-advised & other includes sub-advisory mandates of Mackenzie to mutual funds managed by Investors Group. These mandates had gross sales of $136 million and $210 million during the six months ended June 30, 2008 and 2007, respectively, and net sales of $32 million and $116 million during the first six months of 2008 and 2007, respectively. 2. The six month ended June 30, 2008 includes gross long term mutual fund sales and net sales of $573 million and $291 million, respectively, associated with one institutional investor during Q2, 2008. 32
Mackenzie Mutual Fund Redemption Rate Mackenzie s redemption rate on long-term mutual fund assets continues to be below the average of its peers. 4 Redemption Rate on Long Term Mutual Funds (Last Twelve Month Trailing % of Average Assets Under Management) 20% 18% 1, 3 Industry (IFIC), peer companies of Mackenzie 16% 14% 16.0% 15.3% 15.2% Industry (IFIC), excluding Mackenzie 3 12% Mackenzie 2 10% 8% Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 1. Represents total industry reported by IFIC, adjusted to exclude Mackenzie, Investors Group, deposit takers and direct distributors. 2. Mackenzie has been retroactively restated to include Maxxum redemptions (Maxxum operations were transferred to Mackenzie October 5, 2001. 3. Advice channel and industry have been adjusted to exclude an extraordinary redemption of $884 million from AGF during January, 2005. 4. Adjusted to exclude extraordinary redemptions associated with re-balancing of one institutional investor during June, 2008 of $2.50 billion for the industry excluding Mackenzie, $1.97 billion for the peer companies of Mackenzie and $0.28 billion for Mackenzie. 33
Mackenzie Investment Performance 55% of Mackenzie s mutual funds achieved first or second quartile investment performance during the last year. Mackenzie Mutual Funds in First or Second Quartile At June 30, 2008 55% 34% 30% 38% 45% 35% % of assets under management % of funds 1 Year 3 Year 5 Year Source: Morningstar, excludes Quadrus funds 34
Mackenzie Product Shelf Mackenzie s product shelf is organized under a sub-branding strategy which organizes funds by mandate and investment approach. 35
Mackenzie Sales by Sub-Brand Mackenzie s gross sales of long term mutual funds have become more diversified across sub-brands during the last two years. Gross Sales Mix of Long Term Mutual Funds by Mackenzie Sub-Brand 1,2 5% 5% 9% 8% 16% 13% 6% 6% 18% Other 3 Sentinel Ivy Universal 18% Maxxum 56% 39% Cundill Q1, 2006 Q2, 2006 Q3, 2006 Q4, 2006 Q1, 2007 Q2, 2007 Q3, 2007 Q4, 2007 Q1, 2008 Q2, 2008 1. Excludes Mackenzie Alternative Strategies Fund (this fund is not reported within IFIC numbers). 2. Q2, 2008 has been adjusted to exclude sales resulting from the re-balancing of one institutional investor. 3. Other includes Destination+, Mackenzie, Founders, Focus, Keystone and Symmetry Funds. 36
Mackenzie Product Innovation Mackenzie has a proven track record of product innovation. Mackenzie Mackenzie Income Trust Income Trust Keystone Keystone Asset Asset Allocation Allocation RRSP RRSP Clone Clone Funds Funds Winfund Winfund Purchase Purchase Multi- Multi- Class Class Funds Funds T-Series high T-Series high monthly monthly distribution distribution class class Sentinel Sentinel Managed Managed Return Fund Return Fund Launched Launched Symmetry Symmetry Asset Asset Allocation Allocation Mackenzie Mackenzie Natural Natural Resource LP Resource LP Destination+ Destination+ Funds Funds Charitable Charitable Giving Fund Giving Fund Hedged and Hedged and Un-hedged Un-hedged Currency Currency Classes Classes 1995 1997 1999 2001 2003 2005 2008 Launched Launched STAR STAR Launched Launched Master LP Master LP Acquired Acquired Cundill Funds Cundill Funds Launched Launched Select Select Managers Managers Funds Funds Capital Class Capital Class Tax-Efficient Tax-Efficient Switching Switching Managed Yield Managed Yield Fund Fund Deposit-linked Deposit-linked notes notes Tax & Tax & Estate Estate Planning Planning Acquired Acquired the Cundill the Cundill Group after Group after a successful a successful eight-year eight-year partnership partnership Guided Portfolio Guided Portfolio Service Service Founders Funds Founders Funds Enhances institutional Enhances institutional capabilities through capabilities through Howson Tattersall Howson Tattersall Investment Counsel Investment Counsel 37
Mackenzie Recent Product Developments 1. Launch of Mackenzie Destination+ Funds during 2008 Four target date fund-of-funds with guaranteed principal protection $164 million of net sales into these four funds through June, 2008 2. Launch of Mackenzie Founders fund-of-funds to commemorate Mackenzie s 40 th anniversary in 2007. Net sales into these two funds of $45 million through June, 2008 3. Re-opened the Mackenzie Cundill Recovery Fund on March 28, 2008 5 star Morningstar-rated fund has been closed to new sales since April, 2006 First decile performance over one year, three years, five years and since inception (nine years) $189 million of net sales from April to June, 2008 4. Enhancements to Mackenzie s Symmetry Portfolio Service Managed asset program featuring customized portfolio design, best in-class investment management, tax benefits and enhanced reporting. 5. Continued expansion of T-Series monthly income option, designed for investors seeking tax-efficient monthly distributions 38
Acquisition of Saxon Financial Enhances Mackenzie s internal investment management capabilities in the multi-cap value and fixed income areas. Establishes long-term sub-advisory and distribution relationships with CMA Holdings. Expands Mackenzie s institutional and high net worth presence and offerings through Howson Tattersall Investment Counsel. Provides Mackenzie with over $13 billion in assets under management $2 billion of mutual fund assets and $11 billion of institutional and high net worth assets. Anticipated transaction close of September 25, 2008. 39
Mackenzie Management Focus 1. Business Growth Growing investment product sales Generating superior investment performance Continuing to pursue acquisition opportunities 2. Innovation and Effectiveness Providing advisors, dealers and clients with industry-leading levels of service and support Building upon track record of product and service innovation Managing expenses through cost controls and efficiency initiatives 3. Employee Development Ongoing employee training and development 40
1. Overview 2. Industry and Operating Environment 3. Investors Group 4. Mackenzie 5. Summary 41
Summary IGM Financial provides an attractive vehicle for participation in a high growth industry. Advantages of scale from being one of the largest players in the Canadian asset management and financial planning industry Diversified distribution model, with a focus on advisory segments Broad investment fund product offering through recognized brands, and strong growth in institutional business Extensive domestic and international investment management capabilities Part of the Power Financial group of companies Long history of excellent financial performance 42
IGM Financial Adjusted Earnings Per Share ($) 1 IGM Financial s earnings have grown consistently. 3.23 10 10 year year CAGR CAGR of of 16.5% 16.5% 2.31 2.56 2.85 0.70 0.89 1.12 1.35 1.58 1.85 2.01 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1. 2007 and 2006 Earnings Per Share have each been adjusted to exclude a non-cash income tax benefit resulting from decreases in the federal corporate tax rates and their effect on the future income tax liability related to indefinite life intangible assets of $15.3 million during 2007 and $13.7 million during 2006. 2004 Earnings Per Share has been adjusted to exclude unitholder compensation provision. 2003 Earnings Per Share has been adjusted to exclude a dilution gain, restructuring reversal and non-cash income tax charge. 2001 Earnings Per Share has been adjusted to exclude goodwill amortization and Mackenzie restructuring costs. Diluted earnings per share in accordance with GAAP was $3.29 in 2007, $2.90 in 2006, $2.24 in 2004, $2.03 in 2003 and $1.05 in 2001. 43
IGM Financial Dividends Per Share (cents) IGM Financial has consistently increased its dividends. 177.5 10 10 year year CAGR CAGR of of 19.5% 19.5% 133.5 153.5 99.0 115.0 86.0 30.0 38.0 49.0 61.0 73.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 44
IGM FINANCIAL Scotia Capital Financials Summit September 9, 2008