RF Capital : Document des Résultats

Investor Presentation

February 2024

Richardson Wealth - a leading independent wealth management firm

$35.2B

AUA1,2

157

Number of

advisory teams

$224MM

Average AUA1,2

per team

89%

Recurring fee- based revenue2

22

Offices across

Canada

Vision

To be the brand of choice for Canada's top advisors and their high net-worth clients

Share Ownership

Richardson family	44%
Richardson Wealth advisors	30%
Public shareholders	26%

1. Assets under administration (AUA) is a measure of client assets and is common to the wealth management business. AUA represents the market value of client assets managed and administered by us from which we earn commissions and fees.
2. Considered to be non-GAAP or supplemental financial measures. Such measures do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information please refer to our MD&A for the period ended December 31, 2023, which can be found under our profile at www.sedarplus.caand is incorporated by reference.

2

2

The James Richardson & Sons, Limited group of companies

	Richardson
Richardson Financial	International Limited
Richardson Centre
Group Limited	Limited

Tundra Oil &

Gas Limited

Distinguished	Long-term	Financial
brand	orientation	backing

James A. Richardson & Winston Churchill

(circa 1926)

3

The opportunity we are pursuing is significant

Our industry is large1 and poised		Face to face advisory will remain
for continued growth		critical as HNW client assets grow

2021	2030	Financial advisory to
		remain
$5.6 T	+73% $9.7 T	~40%
of Canadian

financial assets

1 Source: Investor economics

There is meaningful

opportunity for us to capture

~800K

HHs with >$1MM

AUA in Canada

~90,000

IIROC & MFDA

advisors

Well positioned to capture a greater share of fast expanding industry

4

4

Independents are small share of the overall IIROC channel

Banks1,2Independents2

~90%	12K	~10%
Advisors
AUA	in	AUA
	Canada

1. Includes banks' IIROC channel only
2. Estimate only; no single, reliable source of AUA data exists Source: company-specific disclosures & IIROC publications

5

Our value proposition

Advisors

are our

Clients

We are focused on their success and are

committed to creating a best-in-classexperience

for them

6

Our three-pillar strategy to achieve our goals

Three-pillar	Double-down on	Supercharge advisor		Acquire or partner
strategy	support for advisors		recruitment	with like-minded firms

Anticipated contribution to	20%	20%	60%
Adjusted EBITDA growth

Carefully curated, ambitious but achievable growth strategy

77

7

Our transformation created fundamental value

October 2020						December 2023
	AUA	$28B	AUA	$35B
	Revenue	$267MM	Revenue	$351MM
Adjusted	$35MM	Adjusted	$59MM
EBITDA1	EBITDA1
	Share price	$24.202		Share price	$7.52
	EV/EBITDA1	13.0x	EV/EBITDA1	4.3x
	EV/AUA1	1.63%		EV/AUA1	0.73%

+25%

+31%

+69%

-69%

-67%

-55%

1. Considered to be non-GAAP or supplemental financial measures. Such measures do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information please refer to our MD&A for the period ended December 31, 2023, which can be found under our profile at www.sedarplus.caand is incorporated by reference
2. Value ascribed to shares by RBC at the date of our reorganization in October 2020 .

Recent transactions in wealth management support a valuation of 13x-20x EBITDA

8

8

We have been running a profitable business

2023 Adjusted EBITDA1 and Net Income Bridge ($MM)

$27.1MM of limited life expenses

related to our transformation

		Amortization
Adjusted	Normal	Acquired	Advisor	2020 recognition	Interest	Transformation
EBITDA	course	intangibles	loans	loans	expense	and other costs Income tax	Net loss

1. Considered to be non-GAAP or supplemental financial measures. Such measures do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information please refer to our MD&A for the period ended December 31, 2023, which can be found under our profile at www.sedarplus.caand is incorporated by reference

9

Q4 and FY 2023: stable financial performance given transformation

Revenue		Adjusted EBITDA1
($MM)		($MM)
354.0	351.1	61.7	59.5

								17.0
88.5	86.8
						14.5

Q4'22		Q4'23		2022		2023		Q4'22		Q4'23		2002		2023

Ending AUA1 increased to $35.2 billion in 2023

Interest revenue reached $48.8 million in 2023

Gross margin increased to $206 million in 2023

Free cash flow1 for growth of $35.4 million

1. Considered to be non-GAAP or supplemental financial measures. Such measures do not have any standardized meaning prescribed by GAAP under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information please refer to our MD&A for the period ended December 31, 2023, which can be found under our profile at www.sedarplus.caand is incorporated by reference

10