building financial services companies philip armstrong, ceo
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Building Financial Services CompaniesPhilip Armstrong, CEO • AGM Presentation • August 13, 2008
Disclaimer
Canadian Financial Wealth
266% held by affluent investors (>$1 million)
Source: Investor Economics
4. trillion$
2
Competitive landscape
Established titans
Strategic Advice Capital Networks Scale Distribution Compliance Legal/Action
Continuous spirit of innovation
Banks Mutual Funds Insurance
Independent Wealth
Management companies
Hedge Funds
Alpha focused asset
managers / products
Independent Asset
Management companies
ETFs
Growth ceiling
3
Grow
Acquire Create
Strategic Advice Capital Networks Scale Distribution Compliance Legal
Jovian: Building Financial Services Companies
The Jovian Advantage
Grow
4
Track Record of Growth
Client Assets
Acquire (12)
$0.2 billion
2001
Create (8)
Grow
$5.6 billion
2004
$15
billion
2008
5
our portfolio companies
Acquired: November 2003*
Client assets:
• Retail focused investment firm with offices across Canada
• Professional private wealth management solutions
$0.15 billion
$1.8 billion
2001 June 30, 2008
7
*85% owned by Jovian
• Provider of unique financial solutions for retail clients
• 85,000 clients across Canada
• Growing in Ontario
Established: 1968
Acquired: 2003*
Purchase price: $6.0 million
Client assets:
$3.5 billion
$3.9 billion
2003 June 30, 2008
8*100% owned by Jovian
• Oldest independent investment organization in Ontario
• Offices in Toronto and Vancouver
Established: 1939
Acquired: 2004*
Purchase price: $12.1 million
Client assets:
$0.7 billion
$1.8 billion
* 83% owned by Jovian
Client base: primarily HNW individuals, estates and trusts; also serve institutions, charitable foundations and pension plans
2004 June 30, 2008
9
• One of the largest private wealth advisors in Canada
• Offers financial planning and investment advice on a fee-only basis
Established: 1972
Acquired: 2003*
Purchase price: $8.8 million
Client assets:
$0.8billion
$2.3 billion
* 100% owned by Jovian
Client base: HNW individuals and institutions
2003 June 30, 2008
10
• Asset management company that creates, manages and distributes innovative, high-quality investment products
Created: 2007*
Invested capital: $20.6 million
Client assets:
$1.7 billion
$2.5 billion
Client base: individual investors and advisors
2007 June 30, 2008
11
• Provides back-office and middle-office services, as well as professional administrative services
• Third party service provided within a control environment complete with Section 5970 Report by KPMG
Established: 2001
Acquired: 2003*
Purchase price: $1 million
Supports 50+ customer products with a combined asset value of $3.7+ billion
12
* 100% owned by Jovian
• One of the largest providers of Exchange Traded Funds (ETFs) in Canada with over 50% of ETF trading volume on the TSX
• 28 ETFs on the TSX
• One of the fastest-growing ETF providers in North America
Created: 2007
Invested Capital: $9.4 million*
Client assets:
$0 million
$1.75 billion
* 60% owned by Jovian (15% closed in escrow)
2007 June 30, 2008
13
Exchange Traded Funds (ETFs)
Canada
United States
World
57 funds
06 funds1
funds
1$ billion
5$ billion8
billion
7
1
,19 7$ 9709
Building Financial Services CompaniesFinancials • July 2008
Revenue
2004
150
120
90
60
30
0
2005 2006 2007 2008
$ m
illio
ns
36.4
72.9
131.8 128.4
103.9
16
Segmented Revenue
Wealth management
$xx million
Asset management
2006
$49.6
million
2007 2008
$34.9
million
$52.1
million
$78.2
million
$96.4
million
$51.6
million
17
2006 2007 2008
EBITDA
Wealth management
$xx million
Asset management
$xx million
2006
$7.4 million
2007 2008
2006 2007 2008
$5.1 million
$8.0 million
$10.8
million
$18.9
million
$-4.0 million
18
2004
10
8
6
4
2
0
2005 2006 2007 2008
Client Assets
Asset Under Administration
Asset Under Management
$ bi
llion
s
19
2008 Financial Highlights
•Client assets rose 6% year-over-year to $15 billion despite difficult financial markets
•Raised $25.9 million in a private placement for 32.4 million common shares
•Graduated to the Toronto Stock Exchange from the Venture Exchange
•Tailwind Financial Inc., a U.S. special purpose acquisition company, raised approximately $100 million to fund an acquisition
•Subsequent to year-end, entered into an agreement to increase our ownership of BetaPro Management Inc. to 60% (15% in escrow)
20
The Jovian Advantage
Strategic Advice Capital Networks Scale Distribution Compliance Legal
Acquire Create Grow
21
Building Financial Services CompaniesPhilip Armstrong, CEO • AGM Presentation • August 13, 2008
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