Guardian Capital Group Limited Annual Meeting of Shareholders May 10, 2019 George Mavroudis | President and Chief Executive Officer
Forward Looking Statements This presentation may contain “forward - looking statements” with respect to Guardian Capital Group Limited and its products and services, including its business operations and strategy and financial performance and condition. These statements, characterized by such words as “goal”, “outlook”, “intends”, “expects”, “plan”, “prospects”, “are confident”, “believe” and ”anticipate”, a re intended to reflect Guardian’s objectives, plans, expectations, estimates, beliefs and intentions. By their nature, forward-looking statements involve risks and uncertainties. There is a risk that the expectations reflected in such forward-looking statements will not be achieved. Undue reliance should not be placed on these statements, as a number of factors could cause actual results to differ materially from Guardian’s objectives, plans, expectations and estimates reflected in th e forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest rates, business competition, changes in government regulations or in tax laws, and other factors. 2
Guardian Overview 4 Financial Highlights 6 Investment Management 14 Financial Advisory 21
Guardian’s Businesses Corporate Activities and Investments • Management expertise, financing, coordination of business activities and support • Shareholders’ equity: $656 million¹ (2018 - $599M) • Securities holdings: Investment Management Financial Advisory $674 million¹ (2018 - $627M) AUM of $29.6 billion¹ AUA of $18.7 billion¹ • Market Capitalization: $667 million 2 • TSX Listed: GCG, GCG.A ¹As at March 31, 2019 2 As at May 8, 2019 4
Guardian’s Fee Generating Assets Investment Management Financial Advisory Assets Under Management | As at period end | ($ billions) Assets Under Administration | As at period end | ($ billions) $29.6 $18.7 $17.8 $17.4 $16.5 $27.3 $27.3 $27.0 $14.9 $13.1 $25.0 $24.3 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 5
2018 Financial Statement Highlights % Increase / ($ millions, except per share amounts) 2018 2017 Decrease Net revenues $171.5 $151.2 13% Operating earnings $46.4 $48.2 (4%) Net earnings (losses) attributable to shareholders ($17.0) $96.8 (118%) EBITDA¹ $56.2 $52.8 7% AUM $26,962 $27,250 (1%) AUA $17,385 $17,795 (2%) Shareholders’ equity, per share¹ $21.57 $21.88 (1%) Securities, per share¹ $22.58 $22.49 0% 1 As defined in Guardian’s MD&A 6
Q1 2019 Financial Statement Highlights % Increase / ($ millions, except per share amounts) 2019 2018 Decrease Net revenues $ 44.3 $ 41.5 7% Operating earnings $ 11.2 $ 10.5 7% Net earnings (losses) attributable to shareholders $ 67.2 $ (6.2) 1184% EBITDA¹ $ 14.5 $ 12.5 16% AUM $ 29,621 $ 29,457 1% AUA $ 18,745 $ 17,601 6% Shareholders’ equity, per share¹ $ 23.66 $ 21.98 8% Securities, per share¹ $ 24.30 $ 22.84 6% 1 As defined in Guardian’s MD&A 7
Financial Highlights Net Revenue Operating Earnings For the years ended ($ millions) For the years ended ($ millions) $48.2 $171.5 $46.4 $44.7 $43.0 $151.2 $142.7 $38.1 $132.9 $119.3 $11.2 $35.1 $38.6 $41.5 $44.3 $10.5 $11.4 $12.5 $10.5 $27.7 $32.3 $8.6 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 First Quarter Results 8
Diversified Revenue Sources For the year ended December 31, 2018 For the year ended December 31, 2010 (in $ millions) (in $ millions) $14.1 $5.4 $2.3 $25.8 TOTAL TOTAL $15.5 $171.5 $65.0 $23.4 $108.1 $41.8 Asset-Based Revenues (63%) Insurance (15%) Asset-Based Revenues (64%) Insurance (4%) Dividend and Interest (14%) Other (8%) Dividend and Interest (24%) Other (8%) 9
Return to Shareholder: Dividends Quarterly Dividends Per Share Total Annual Dividends Paid For the periods ended ($ per share) For the periods ended ($millions) $0.150 $13.3 $0.125 $11.1 $9.7 $0.100 $8.6 $0.085 $7.2 $0.075 $0.065 $3.4 $2.5 $2.8 $2.2 $1.9 $2.8 $3.4 $1.7 $2.2 $2.5 $1.9 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 Q1 2019 First Quarter Results For 2019, the rate represents the latest quarterly declared dividend. For years 2014-2018, the rates represent the dividend paid in the fourth quarter. 10
Return to Shareholder: Share Buybacks Share Buybacks Shares Average For the periods ended ($ millions) (in 000’s) Price (in $’s) Outstanding at Jan. 1, 2012 33,843 $26.0 $23.9 2012 (800) $9.73 2013 (574) $13.73 2014 (324) $17.45 $15.2 2015 (817) $17.62 $14.4 2016 (1,173) $20.35 2017 (632) $24.08 $7.9 $7.8 2018 (1,118) $23.28 $5.7 2019 - - Total Purchases (5,438) $18.54 Outstanding at Mar. 31, 2019* 28,405 2012 2013 2014 2015 2016 2017 2018 Since 2012, approximately $100.8 million has been returned to shareholders in the form of share buybacks. * Excludes the effects of treasury stock 11
Managing Our Investment Portfolio Securities Guardian Capital Proprietary Strategies (in $ millions) | Total $674 (in $ millions) | Total $253 $61 $20 $20 $18 $359 $21 $154 $233 $40 Global Equity (61%) Bank of Montreal (53%) Real Estate (3%) Fixed Income (7%) Investment Funds (35%) Other Equities (9%) Real Estate (8%) Emerging Markets Equity (16%) Canadian Equity (8%) As at March 31, 2019 12
A Focus on Shareholder Value Equity per share, diluted Securities per share, diluted As at period end (in $) As at period end (in $) $24.30 $23.66 $22.58 $22.49 $21.88 $21.57 $20.97 $19.62 $17.72 $16.78 $16.55 $15.62 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 13
Investment Management • $29.6 billion in AUM • Competitive investment products Institutional Investment Private Management Wealth • Executing on opportunities • Active across multiple $26.5 billion in AUM $3.1 billion in AUM distribution channels As at March 31, 2019 14
Institutional Investment Solutions FOREIGN FIXED CANADIAN EQUITIES INCOME EQUITIES $9.7 billion $7.0 billion $9.8 billion • Core • Systematic Strategies • Large Cap Core • Liability Driven • Fundamental Global & • Growth • Short Duration • Equity Income Emerging Market Equity • High Yield • US Equity Large Cap and • High Conviction All Cap • Unconstrained HY All Cap Growth As at March 31, 2019 15
Institutional Investment Solutions Growth in Global AUM Growth of Global Revenue ($ billions) ($millions) 100% 100% $14.0 $60.0 90% 90% $12.0 80% $50.0 80% 70% 70% $10.0 $40.0 60% 60% $8.0 50% 50% $30.0 40% $6.0 40% $20.0 30% 30% $4.0 20% 20% $10.0 48% 53% $2.0 21% 23% 26% 10% 10% 16% 34% 37% 15% 16% 14% 11% $- 0% 0% $- 2014 2015 2016 2017 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2019 Global Revenue % Global Revenue $ Domestic AUM % Global AUM $ Domestic Revenue % Global AUM % ¹Revenue is Q1 2019 annualized 16
High-Conviction Investing - Performance Guardian High-Conviction Investing Strategies (Since Inception Performance) 14% 12% 10% 8% 6% 4% 2% Fundamental Global Equities Alta Select US Large Cap Canadian Focused Equity Fundamental Emerg Mkts Fundamental EAFE Strategy Return Benchmark Return Above chart represents the quartile ranking of annualized performance since inception, as a percentage 17
Institutional AUM: By Geography (in Billions) CANADIAN CLIENTS INTERNATIONAL 2017: $22.8 2018: $21.0 CLIENTS 2019: $19.2 2017: $0.8 2018: $1.0 2019: $1.8 US CLIENTS 2017: $0.3 2018: $4.6 2019: $5.5 As at March 31 for the noted year 18
Distribution Channels GUARDIAN CAPITAL GROUP $29.6 billion in AUM 40% 50% 10% RETAIL PRIVATE INSTITUTIONAL INTERMEDIARY WEALTH $11.7 billion $14.8 billion $3.1 billion SUB- WRAP ADVISORY $10.9 billion $3.9 billion As at March 31, 2019 19
Private Wealth Assets Under Management Managing over $3 billion on behalf of As at period ends ($ billions) over 1700 households across 3 offices in Canada Increased use of Guardian solutions $3.1 $3.0 with approximately $826 million $2.9 $2.9 invested in Guardian Capital Funds as at March 31, 2019 ($218 million in $2.3 $2.1 2012) Beneficiary of $610 million in referral of client accounts from Worldsource advisors 2014 2015 2016 2017 2018 Q1 2019 20
Financial Advisory • $18.7 billion in AUA • National distribution platforms Mutual Fund & Securities Life Insurance Dealerships MGA • Leading platform for Canada’s independent financial advisors $13.6 billion in AUA $5.1 billion in AUA As at March 31, 2019 21
Financial Advisory Operating Earnings ($ millions) $14.6 First Quarter Results $12.9 $11.0 $10.1 $6.4 $2.7 $2.6 $4.4 $2.9 $3.3 $0.8 2014 2015 2016 2017 2018 Q1 2019 Significant growth in operating earnings through acquisitions, organic growth and management of costs Represents approximately 28% of Guardian’s operating earnings in 2018 22
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