Fiscal 2017 Q2 Results - CI Investments · Page 9 aa Financial Highlights a 2017 2 e (year-over-year quarters) [millions, except per share] Q2-2017 Q2-2016 Change Average AUM $122,691

Fiscal 2017 Q2 Results

Peter Anderson, CEODoug Jamieson, CFO

August 10, 2017

CI FinancialFiscal 2017 Q2 ResultsImportant Information

This presentation contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI and its products and services, including its business operations, strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. For further information regarding factors that could cause actual results to differ from expectations, please refer to Management’s Discussion andAnalysis available at www.cifinancial.com.

This presentation contains several non-IFRS financial measures including adjusted net income, EBITDA, free cash flow, operating cash flow, and SG&A efficiency margin that do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. However, management uses these financial measures and also believes that most shareholders, creditors, other stakeholders and investment analysts prefer to include the use of these financial measures in analyzing CI’s results. These non-IFRS measures are described and/or reconciled to the nearest IFRS measure in CI’s Management’s Discussion and Analysis available at www.cifinancial.com.

Figures exclude non-controlling interest, where applicable.

Fiscal 2017 Q2 Results

Page 1 CI FinancialFiscal 2017 Q2 Results

• 100% of shares for $780 million in cash and stock • Expected to close Sept. 30th subject to approvals • Increases scale and access to distribution • Combined AUM of approx. $140 billion • Accretive to CI shareholders

Sentry Investments Acquisition

Doug Jamieson Chief Financial Officer


140

120

100

80

60

40

20

0

ETFTotal BalancedFixedIncome

Equity

Combined AUM(in $billions)

CI Sentry


225

200

175

150

125

100

75

50

0

RBCCIB

C

CI + Sentry

Investo

rs Group

DesjardinsTD

BMO

National B

ankCI

Mackenzie

Frankli

n Templeton

Fidelity

Manulife AGFScotia MD

Sentry

Source: IFIC, CI Reports

Industry Position(As at June 30, 2017, in $billions)


• Consolidate similar vendor relationships

• Increased negotiating power with vendors

• IT and back-office functions highly scalable

• Expect to achieve full synergies by 2019

• Deal highly accretive

Scale & Synergies


• Revenue $2.3B +

• EBITDA $1.0B +

• Net Income $650M

• Free Cash Flow $750M

Pro Forma 2018


• Paying $230 million in cash, plus approximately 20 million common shares

• Pro forma debt will be approximately $1 billion at close

• Debt to EBITDA ratio at 1:1

CI Financial Position

Page 8 CI FinancialFiscal 2017 Q2 ResultsFinancial Highlights

(consecutive quarters)

[millions, except per share] Q2-2017 Q1-2017 Change

Average AUM $122,691 $119,423 3%

Net income $96.3 $134.2 -28%

per share $0.37 $0.51 -27%

Adjusted net income* $141.3 $134.2 5%

per share* $0.54 $0.51 6%

EBITDA $222.0 $219.4 1%

per share $0.85 $0.83 2%

Free cash flow $154.8 $153.8 1%

Dividends paid per share $0.3475 $0.3450 1%

*The quarter ended June 30, 2017 excludes a $45.0 million provision for the settlement of outstanding notices of reassessment received for the years 2006 to 2008.

Page 9 CI FinancialFiscal 2017 Q2 ResultsFinancial Highlights

(year-over-year quarters)

[millions, except per share] Q2-2017 Q2-2016 Change

Average AUM $122,691 $108,994 13%

Net income $96.3 $128.6 -25%

per share $0.37 $0.47 -21%

Adjusted net income* $141.3 $128.6 10%

per share* $0.54 $0.47 15%

EBITDA $222.0 $214.1 4%

per share $0.85 $0.78 9%

Free cash flow $154.8 $147.5 5%

Dividends paid per share $0.3475 $0.3350 4%

*The quarter ended June 30, 2017 excludes a $45.0 million provision for the settlement of outstanding notices of reassessment received for the years 2006 to 2008.

Page 10 CI FinancialFiscal 2017 Q2 ResultsTotal SG&A

(as a % of average AUM, in basis points)

46

44

42

40

38

36

34

32

30

28

26

36.236.7

33.8 33.6

35.4

36.5

34.1 34.0

35.534.8 34.6 35.436.1

Q3-16Q3-14 Q2-17Q2-15 Q1-16 Q4-16 Q1-17Q4-14 Q3-15 Q2-16Q2-14 Q1-15 Q4-15


180

160

140

120

100

80

60

40

20

–

160

148151

161154 155

148154

138143

151144 147

Q3-14 Q2-17Q2-15 Q1-16 Q2-16Q4-14 Q3-15 Q3-16 Q4-16 Q1-17Q2-14 Q1-15 Q4-15

Quarterly Free Cash Flow (in $millions)


[in $millions] LTM Q2-2017 Q1-2017

Operating cash flow 591 117 164

Adjustments 65 45 -

Sales commissions (34 ) (7 ) (10 )

Free cash flow 622 155 154

Share buybacks 316 90 73

Dividends 368 91 92

Total 684 181 164

Return to Shareholders

Note: totals may not sum due to rounding.

Peter Anderson Chief Executive Officer


CI Retail • Positive momentum continues • Strong sales across all regions and channels

CI Institutional Asset Management • More wins in Q2; large purchase in July • $1.25 billion in short-listed mandates Portfolio Management • Big turnaround in short-term performance • Long-term performance remains strong

Q2 Review


GSFM • Retail business growing extremely well • Launching CI products later this year First Asset • ETF assets have doubled since acquisition • On track for best sales year

Assante & Stonegate • Net sales 20% higher compared with Q2-2016 • Advisor pipeline remains strong

Q2 Review (cont’d)


• First half of 2017 much stronger than last year • Sentry acquisition is very strategic to CI: - Provides scale in a market where scale is critical - Broadens distribution in Canada - Adds new talent such as PMs, sales staff etc. - Accretive to CI

Summary

Thank You

Documents

Fiscal 2017 Q2 Results - CI Investments · Page 9 aa Financial Highlights a 2017 2 e (year-over-year quarters) [millions, except per share] Q2-2017 Q2-2016 Change Average AUM $122,691