Mr. Dan Daviau reports

CANACCORD GENUITY GROUP INC. REPORTS FOURTH QUARTER FISCAL 2016 RESULTS

During the fourth quarter of fiscal 2016, the quarter ended March 31, 2016, Canaccord Genuity Group Inc. generated $200.9-million in revenue. Excluding significant items (1), the company recorded a net loss of $2.1-million or a net loss of $5.1-million attributable to common shareholders (2) (a loss per common share of six cents). Including all expense items, on an international financial reporting standards basis, the company recorded a net loss of $22.7-million or a net loss attributable to common shareholders (2) of $25.5-million (a loss per common share of 29 cents).

During the fiscal year ended March 31, 2016, Canaccord generated $787.8-million in revenue, and, excluding significant items (1), recorded a net loss of $6.0-million or a net loss attributable to common shareholders (2) of $18.6-million (a loss per common share of 21 cents). Including all expense items, on an IFRS basis, the company recorded a net loss of $358.6-million or a net loss of $370.5-million attributable to common shareholders (2) (a loss per common share of $4.09).

"While our results reflect the impact of global growth concerns that persisted through the fiscal year and led to significantly reduced activity across financial markets, we are encouraged by improving activity levels across core focus sectors in recent months," said Dan Daviau, president and chief executive officer of Canaccord Genuity Group. "During the second half of the year, we made significant progress on our strategy to improve efficiencies and reduce fixed costs across our business, and we are well positioned to return all of our businesses to profitability."

As previously reported in connection with the company's third-quarter 2016 results, the company recorded in third quarter 2016, as significant items, impairment charges in respect of goodwill and other assets in the amount of $321.0-million, and restructuring costs of $4.3-million. Significant items recorded in the fourth quarter of fiscal 2016 include restructuring costs of $13.1-million in respect of the restructuring program that was announced in connection with the company's third-quarter 2016 results, a non-cash accounting charge related to the surrender of certain stock awards granted during third quarter 2016 in the amount of $8.1-million and the amortization of intangible assets acquired in connection with a business combination in the amount of $2.8-million.

With the weak market conditions experienced through fiscal 2016, certain incentive compensation pools as recorded under the company's normal methodology were determined to be lower than would be required to provide necessary compensation to selective key production staff and, as a result of adjustments to these pools in both third quarter 2016 and fourth quarter 2016, the company's compensation expense as a percentage of revenue was higher in each of these quarters and for the fiscal year than in previous fiscal periods. It is expected that compensation ratios will return to a level generally in line with ratios experienced prior to third quarter 2016.

The company is continuing its review of its operations and cost structure. Opportunities and strategies for reducing costs have been identified in respect of compensation expense, communications and technology costs, trading costs, and promotion and travel expenses. As these strategies and initiatives are implemented, the company expects to realize cost savings in these areas through fiscal 2017.

Included in development costs is the non-cash accounting charge referred to above in respect of the surrender of long-term incentive awards granted to Dan Daviau and Pat Burke in connection with their appointments as chief executive officer and president of Canaccord Genuity (Canada), respectively, during fiscal 2016. The accounting charge, offset by a corresponding increase in shareholders' equity, was in the aggregate amount of $8.1-million and was related to the unamortized balance of their awards as of March 31, 2016, in accordance with applicable accounting standards.

The company intends to undertake a private placement in which employees would subscribe on market terms for up to approximately seven million common shares of the company, together with one-half of a share purchase warrant. The shares and the warrants would have significant resale restrictions to promote long-term employee ownership. Proceeds from the proposed private placement would be used to finance the purchase by the company's independent employee benefit trusts of common shares in the market to cover future grants of restricted share units to employees.

"A key priority for our organization is ensuring that employees are directly aligned with our shareholders," said Mr. Daviau, president and chief executive officer of Canaccord Genuity Group. "By implementing a program that encourages long-term share ownership by our employees, we promote alignment with our shareholders and stability across the organization."

Fiscal 2016 versus fiscal 2015

12 months ended March 31, 2016, versus 12 months ended March 31, 2015:

• Revenue of $787.8-million, a decrease of 10.6 per cent or $93.0-million from $880.8-million;
• Excluding significant items, expenses of $793.9-million, a decrease of 4.1 per cent or $33.6-million from $827.5-million (1);
• Expenses of $1.2-billion, an increase of 29.9 per cent or $265.4-million from $886.4-million;
• Excluding significant items, a net loss of $6.0-million compared with net income of $39.3-million (1);
• Net loss of $358.6-million, compared with a net loss of $11.3-million;
• Excluding significant items, loss per common share of 21 cents compared with diluted earnings per common share (EPS) of 25 cents in fiscal 2015 (1);
• Loss per common share of $4.09 compared with a loss per common share of 27 cents in the prior year.

Fourth quarter fiscal 2016 versus fourth quarter fiscal 2015

Three months ended March 31, 2016, versus three months ended March 31, 2015:

• Revenue of $200.9-million, a decrease of 13.6 per cent or $31.6-million from $232.5-million;
• Excluding significant items, expenses of $204.3-million, a decrease of 7.2 per cent or $15.8-million from $220.0-million (1);
• Expenses of $228.2-million, a decrease of 12.5 per cent or $32.6-million from $260.8-million;
• Excluding significant items, a net loss of $2.1-million compared with net income of $8.8-million (1);
• Net loss of $22.7-million compared with a net loss of $26.3-million;
• Excluding significant items, a loss per common share of six cents compared with diluted earnings per share of five cents in the fourth quarter of 2015 (1);
• Loss per common share of 29 cents compared with a loss per common share of 33 cents.

Fourth quarter of fiscal 2016 versus third quarter of fiscal 2016

Three months ended March 31, 2016, versus three months ended Dec. 31, 2015:

• Revenue of $200.9-million, an increase of 10.5 per cent or $19.1-million from $181.8-million;
• Excluding significant items, expenses of $204.3-million, an increase $100,000 from $204.2-million (1);
• Expenses of $228.2-million, a decrease of 57.1 per cent or $304.3-million from $532.5-million;
• Excluding significant items, a net loss of $2.1-million compared with a net loss of $19.1-million (1);
• Net loss of $22.7-million compared with a net loss of $346.4-million;
• Excluding significant items, a loss per common share of six cents compared with a loss per common share of 25 cents in the third quarter of 2016 (1);
• Loss per common share of 29 cents compared with a loss per common share of $3.91 in the third quarter of fiscal 2016.

Financial condition at end of fourth quarter 2016 versus fourth quarter 2015

• Cash and cash equivalents balance of $428.3-million, an increase of $106.0-million from $322.3-million;
• Working capital of $381.3-million, a decrease of $45.9-million from $427.2-million;
• Total shareholders' equity of $749.9-million, a decrease of $367.6-million from $1,117.5-million;
• Book value per diluted common share for the period-end was $4.99, a decrease of 42.7 per cent or $3.72 from $8.71 (3);
• On June 1, 2016, the board of directors considered the company's dividend policy in the context of the market environment and Canaccord's business activity, and approved a continued suspension of the quarterly common dividend. This suspension will be reviewed quarterly and a determination made on the basis of business conditions and profitability.
• On June 1, 2016, the board of directors approved a cash dividend of 34.375 cents per Series A preferred share payable on June 30, 2016, with a record date of June 17, 2016, and approved a cash dividend of 35.9375 cents per Series C preferred share payable on June 30, 2016, with a record date of June 17, 2016.

Summary of operations for the quarter

Corporate:

• On April 1, 2016, the company announced its delisting from the London Stock Exchange.
• On April 4, 2016, Canaccord Genuity Wealth Management (Canada) and Credit Suisse Asset Management announced an exclusive strategic partnership.
• On April 8, 2016, the company and SAC Capital Private Ltd. announced the sale of Canaccord Genuity Singapore Ltd. and a strategic partnership arrangement.

Capital markets

• During fiscal fourth quarter 2016, Canaccord Genuity led or co-led nine transactions globally, raising total proceeds of $325.0-million (4);
• Canaccord Genuity participated in 32 transactions globally, raising total proceeds of $9.7-billion (4) during fiscal Q4 2016;
• Significant investment banking transactions for Canaccord Genuity during fiscal Q4 2016 include:
• • $110.1-million (U.S.) for Hutchison China Medtech on Nasdaq;
  • 48.0-million-pound sell down for SuperGroup PLC on London Stock Exchange;
  • 36 million pounds for HICL Infrastructure on LSE;
  • $45.0-million (U.S.) for Senseonics Holdings Inc.;
  • 23.75-million-euro private placement for TiGenix NV on EuroNext Brussels;
  • $125-million (Australian) for Orocobre Ltd. on Australian Securities Exchange;
  • $75.0-million (Australian) for ImpediMed Ltd. on ASX;
  • $27.1-million for Merus Labs International Inc. on Toronto Stock Exchange;
  • $20.3-million (Australian) for Blackham Resources Ltd. on ASX.
• Canaccord Genuity generated advisory revenues of $54.6-million during fiscal Q4 2016 and $158.0-million during fiscal 2016;
• During fiscal Q4 2016, significant merger and acquisition, and advisory transactions included:
  • Astorg Partners on the sale of Saverglass;
  • Barclays on the sale of offshore trust and fiduciary business;
  • CalAmp on the $134-million (U.S.) acquisition of Lojack Corp.;
  • Centric Health Corp. on the sale, for gross proceeds up to $250-million, of its physiotherapy rehabilitation and assessments segment to Audax Private Equity;
  • Com Dev International Ltd. on the $125-million spin-out of exactEarth;
  • Com Dev International on the $455-million sale of its equipment business to Honeywell International Inc.;
  • CryoLife Inc. on the $130-million (U.S.) acquisition of On-X Life Technologies Holdings Inc.;
  • Disposal of Alcyane Consulting to CGI Group;
  • Estrella International Energy Services Ltd. on the restructuring of its outstanding convertible debentures;
  • Gaucho Holdings Ltd. on its sale to Equistone Partners Europe;
  • GFL Environmental Inc. on the $800-million acquisition of the Matrec solid waste division from Trans Force Inc.;
  • Imperial Capital on sale of Lise Watier Cosmetiques to Groupe Marcelle;
  • Kicking Horse Energy Inc. on its $356-million sale to Orlen Upstream Canada;
  • LED Linear on its 61-million-euro sale to Fagerhult;
  • Merit Medical Systems on the acquisition of the HeRo Graft from CryoLife;
  • NTR PLC on the 250-million-euro close of its wind investment fund, NTR Wind 1;
  • Openwave Messaging Inc. on sale to Synchrocross Technologies;
  • Rockhopper Exploration PLC on its merger with Falkland Oil and Gas Ltd.;
  • Triotech on an $80-million investment by Caisse de depot et placement du Quebec;
  • TUC Brands Ltd. on its merger with CareWorx Inc.;
  • Vermeer Capital on the sale of Regie Linge Developpement.

Canaccord Genuity Wealth Management (global):

• On a global basis, Canaccord Genuity Wealth Management generated revenue of $61.4-million in Q4 2016;
• Total assets under administration (3) in Canada, and assets under management (3) in the United Kingdom, Europe and Australia, were $32.7-billion at the end of fiscal Q4 2016.

Canaccord Genuity Wealth Management (North America):

• Canaccord Genuity Wealth Management generated $25.5-million in revenue and recorded a net loss before taxes of $3.2-million in Q4 2016.
• Assets under administration (3) in Canada were $9.19-billion, an increase of 1.7 per cent from $9.04-billion at the end of third quarter 2016 and a decrease of 14.3 per cent from $10.73-billion at the end of Q4 2015.
• Assets under management (3) in Canada (discretionary) were $1.26-billion, a decrease of 0.4 per cent from $1.26-billion at the end of third quarter 2016 and a decrease of 19.5 per cent from $1.56-billion at the end of Q4 2015.
• As at March 31, 2016, Canaccord Genuity Wealth Management had 139 advisory teams (5), a decrease of 13 advisory teams (5) from March 31, 2015, and a decrease of one from Dec. 31, 2015.

Canaccord Genuity Wealth Management (United Kingdom and Europe):

• Wealth management operations in the U.K. and Europe generated $34.9-million in revenue and, excluding significant items, recorded net income of $5.0-million before taxes (1) in Q4 2016;
• Assets under management (discretionary and non-discretionary) (3) were $22.8-billion (12.2 billion pounds), a decrease of 7.1 per cent from $24.5-billion (11.9 billion pounds) at the end of third quarter 2016 and an increase of 4.7 per cent from $21.8-billion (11.6 billion pounds) at the end of Q4 2015.

                       SELECTED FINANCIAL INFORMATION EXCLUDING SIGNIFICANT ITEMS (1)
                            ($ thousands, except per-share and  per-cent amounts)

                                                   Three months ended March 31,   For the years ended March 31,
                                                             2016         2015                2016        2015

Total revenue per IFRS                                    $200,912     $232,465           $787,805    $880,763
Total expenses per IFRS                                    228,210      260,835          1,151,776     886,420
Significant items recorded in Canaccord Genuity
Amortization of intangible assets                            1,346        1,691              5,409       6,823
Impairment of goodwill and other assets                          -       10,000            321,037      14,535
Restructuring costs                                          8,328       20,997             11,305      20,997
Development costs                                            1,157            -              1,157           -
Significant items recorded in Canaccord Genuity
Wealth management
Amortization of intangible assets                            1,471        1,467              6,055       7,591
Restructuring costs                                            165            -                165         783
Significant items recorded in corporate and other
Restructuring costs                                          4,582        1,433              5,882       3,033
Development costs                                            6,904        5,200              6,904       5,200
Total significant items                                     23,953       40,788            357,914      58,962
Total expenses excluding significant items                 204,257      220,047            793,862     827,458
Net (loss) income before income taxes -- adjusted           (3,345)      12,418            $(6,057)     53,305
Income tax (recovery) expense -- adjusted                   (1,232)       3,598                (62)     13,975
Net (loss) income -- adjusted                              $(2,113)      $8,820            $(5,995)    $39,330
(Loss) earnings per common share -- basic, adjusted         $(0.06)       $0.05             $(0.21)      $0.27
(Loss) earnings per common share -- diluted, adjusted       $(0.06)       $0.05             $(0.21)      $0.25

(1) Figures excluding significant items are non-international financial reporting standards measures
(2) NM: not meaningful

Access to quarterly results information

Interested investors, the media and others may review this quarterly earnings release and supplementary financial information.

Conference call and webcast presentation

Interested parties are invited to listen to Canaccord Genuity's fiscal fourth-quarter 2016 results conference call, via live webcast or a toll-free number. The conference call is scheduled for Thursday, June 2, 2016, at 5 a.m. PT, 8 a.m. ET, 1 p.m. U.K. time, 9 p.m. China Standard Time and on June 3, 2016, at 12 a.m. Australia EST. During the call, senior executives will comment on the results, and respond to questions from analysts and institutional investors.

The conference call may be accessed live and archived on a listen-only basis via the Internet.

Analysts and institutional investors can call in via telephone at:

• 647-427-7450 (within Toronto);
• 1-888-231-8191 (toll-free outside Toronto);
• 0-800-051-7107 (toll-free from the United Kingdom);
• 0-800-91-449 (toll-free from France);
• 10-800-714-1191 (toll-free from northern China);
• 10-800-140-1195 (toll-free from southern China);
• 1-800-287-011 (toll-free from Australia);
• 800-017-8071 (toll-free from United Arab Emirates).

Please ask to participate in the Canaccord Genuity Group Q4 2016 results call. If a passcode is requested, please use 68962903.

A replay of the conference call will be available on June 2, 2016, after 8 a.m. PT, 11 a.m. ET, 4 p.m. (U.K. time), and on June 3, 2016, at 12 a.m. (China Standard Time) and at 3 a.m. (Australia EST) until July 18, 2016, at 416-849-0833 or 1-855-859-2056 by entering passcode 68962903 followed by the pound sign.

(1) Figures excluding significant items are non-IFRS measures

(2) Net (loss) income attributable to common shareholders is calculated as the net (loss) income adjusted for non-controlling interests and preferred share dividends

(3) Non-IFRS measures

(4) Source: FP Infomart and company information; transactions over $1.5-million

(5) Advisory teams normally comprise one or more investment advisers (IAs), and their assistants and associates, who, together, manage a shared set of client accounts. Advisory teams that are led by, or only include, an IA who has been licensed for less than three years are not included in the company's advisory team count, as it typically takes a new IA approximately three years to build an average-sized book of business.