IGM Financial (IGM) 25th Annual Scotiabank Financials Summit 2024 summary

Business structure and recent performance

• Two divisions: Wealth Management and Asset Management, each with three businesses; partial and full ownership stakes.

• Client assets on a look-through basis reached CAD 430 billion, up 15% year-over-year.

• Recent M&A activity (CAD 4 billion deployed from 2020-2023) has concluded, focusing now on organic growth.

• Core businesses (IG and Mackenzie) targeted for 7% annual growth; strategic investments targeted for 15%.

• Medium-term EPS growth target set at 9%; year-to-date growth at 7%.

Strategic priorities and growth opportunities

• Focus on growing earnings to drive share price and reduce payout ratio.

• Emphasis on unlocking earnings potential in strategic investments.

• Strategic priorities are operational: building resiliency, sustaining and growing margins, and investing in core businesses.

• No major M&A or capital allocation changes planned; focus is on incremental improvements.

• IG and Mackenzie maintain attractive EBITDA margins (42% and 37%, respectively).

Operating environment and market conditions

• Challenging sales environment with industry-wide outflows and redemptions.

• Higher rates and cost of living have shocked Canadian households, leading to elevated savings and redemptions.

• Recovery expected to take quarters, not months; household confidence is key to improvement.

• IG has outperformed Mackenzie in flows; IG ranked #2 in Dealer Report Card.

• Mackenzie and IG are well-positioned for recovery; strategic investments like Rockefeller and Wealthsimple show strong asset growth.