Transcript Summer presentation 2008

Building Financial Services Companies
Philip Armstrong, CEO • Shareholder Meeting • March 5, 2009
Disclaimer
The information contained herein, while obtained from sources which are believed to be reliable, is not guaranteed as to its accuracy
or completeness and confers no right to purchasers. Information contained herein may be amended. This presentation is for
information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein.
Certain statements in this presentation may constitute “forward-looking statements” within the meaning of applicable Canadian
securities laws. These forward-looking statements include statements with respect to our beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. The words “may”, “will”, “could”, “should”, “would”, “believe”, “expect”, and “continue” (or the
negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Such forwardlooking statements are based on current expectations and involve certain risks and uncertainties. Actual results might differ
materially from those projecting in the forward-looking statements. In some cases, information regarding certain important factors
that could cause actual results to differ materially from those in the forward-looking statements is contained in Jovian’s filings with
the Canadian securities regulators. Such factors include: general economic and market conditions; our ability to execute our
strategic plans and meet financial obligations; the performance of the principal subsidiaries of Jovian Capital Corporation (“Jovian”);
Jovian’s ability to raise additional capital, if needed; our ability to create, attract and retain assets under management and assets
under administration; risks relating to trading activities and investments; competition faced by Jovian; regulation of Jovian’s
business; successful integration of Jovian with any acquired businesses and the realization of any anticipated synergies;
maintenance of minimum regulatory capital requirements for certain of Jovian’s subsidiaries; potential liability of Jovian and its
subsidiaries under securities laws and for violations of investor suitability requirements; the ability of Jovian and its subsidiaries to
attract and retain key personnel and financial advisors; administrative vulnerability and error; and the availability and adequacy of
insurance coverage for Jovian and its subsidiaries. The preceding list is not exhaustive of all possible risk factors that may influence
actual results and are identified based upon information available as of the date hereof. Many of the factors that will determine our
future performance are beyond our ability to control or predict. You are cautioned not to put undue reliance on any forward-looking
statements. Except as required by applicable securities laws, we do not have any intention or obligation to update forward-looking
statements after this presentation, even if new information, future events or other circumstances have made them incorrect or
misleading.
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Agenda
• Share consolidation
• Business update
3
Reasons for share consolidation
•
Perception of being a “penny stock” a negative for
financial service company
•
Brings share price in line with comparable financial
services companies
•
Opportunity to raise the investment community’s
awareness of Jovian and its portfolio companies
•
Leads to a more manageable share count
4
Relative Share Price Performance
120%
80%
(46%)
40%
(60%)
(62%)
0%
16-Jul-08
30-Aug-08
14-Oct-08
(1)
Large Cap Asset Managers
28-Nov-08
(1)
12-Jan-09
(2)
Small Cap Asset Managers
26-Feb-09
(2)
Jovian
(1) Including: IGM, CI, AGF, Dundee, Sprott, Brookfield, Dundee, ONEX and Gluskin.
(2) Including: Guardian, Sceptre, Seamark, Integrated Asset Management, C.A. Bancorp, Aston Hill, Middlefield, Augen, Greenfield Financial and Mavrix.
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Building Financial Services Companies
Business Update
Jovian: Building Financial Services Companies
The Jovian Advantage
Strategic Advice
Capital
Networks
Scale
Distribution
Grow
Compliance
Legal
Grow
Acquire
Create
7
Track Record of Growth
Acquire (12)
billion
$8.1
Create (8)
Grow
$12.7
Client Assets
billion
$0.2
billion
March 31,
March 31,
December 31,
2001
2005
2008
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our portfolio companies
• 2nd largest provider of
Exchange Traded Funds
(ETFs) in Canada
Created:
2007*
Invested Capital:
$11.4 million
Client assets:
• One of the fastest-growing
ETF providers in North
America
• Recently launched the
AlphaPro family of ETFs,
the first actively managed
ETFs offered in Canada
$1.9
billion
$0
million
2007
December 31,
2008
* 60% owned by Jovian
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Exchange Traded Funds (ETFs)
Top 3 players in Canada
$19
9.3
billion
+61%
2008 vs 2007
BetaPro
$1.9
billion
29 funds
+223%
2008 vs 2007
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• Retail focused investment
firm with offices across
Canada
Acquired:
November 2003*
Client assets:
• Professional private wealth
management solutions
$1.0
billion
$0.15
billion
2001
December 31,
2008
* 85% owned by Jovian
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• Re-branded under MGI
Wealth umbrella (formerly
Rice Financial)
• Provider of unique
financial solutions for
retail clients
Established:
1968
Acquired:
2003*
Purchase price:
$6.0 million
Client assets:
$3.5
billion
$3.9
billion
• 85,000 clients across
Canada
• Growing in Ontario
2003
December 31,
2008
* 100% owned by Jovian
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• Oldest independent
investment organization
in Ontario (70 years)
Established:
1939
Acquired:
2004*
Purchase price:
$12.1 million (84%)
Client assets:
• Offices in Toronto and
Vancouver
$1.3
billion
$0.7
billion
2004
December 31,
2008
Client base: primarily HNW individuals, estates
and trusts; also serve institutions, charitable
foundations and pension plans
* 83% owned by Jovian
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• One of the largest private
wealth advisors in Canada
Established:
1972
Acquired:
2003*
Purchase price:
$8.8 million
• Offers financial planning
and investment advice on
a fee-only basis
Client assets:
$2.0
billion
$0.8
billion
2003
December 31,
2008
Client base: HNW individuals and institutions
* 100% owned by Jovian
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• Asset management
company that creates,
manages and distributes
innovative, high-quality
investment products
Created:
2007*
Invested capital:
$20.6 million
Client assets:
$2.5
billion
$1.7
billion
2007
December 31,
2008
Client base: individual investors and advisors
* 100% owned by Jovian
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• 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 more than 20+
customers and
services, more than 175
different fund products
with a combined asset
value of $2.0+ billion
* 100% owned by Jovian
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FYQ3/09 Financial Summary
in C$ millions except per
share amounts
Three months ended
December 31, 2008
Three months ended
December 31, 2007
12,733
14,509
Revenue
22.2
25.9
Operating expenses
25.0
26.2
Adjusted EBITDA1
(2.8)
(0.3)
Net loss2
(12.9)
(1.9)
Loss per share2
(0.08)
(0.02)
Client assets
1 Adjusted
EBITDA, a non-GAAP performance measure utilized by Jovian, consists of EBITDA adjusted for noncash stock-based compensation.
2
Net loss and loss per share for the 3 months ended December 31, 2008 include a non-cash impairment charge
of $9.4 million largely related to the anticipated termination by JovInvestment Management Inc. of related
management contracts with the Canadian Medical Discoveries Fund Inc.
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Investment Highlights
• Track record of acquiring, creating and growing financial
services companies in Canada
• One of the few public companies in North America with
exposure to the fast-growing ETF market through
BetaPro and AlphaPro
• Opportunity to leverage strong brand names such as
MGI, Leon Frazer and T.E. Wealth
• Experienced management team
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Building Financial Services Companies
Philip Armstrong, CEO • Shareholder Meeting • March 5, 2009