May 9, 2005

125 WEEKS
IGM FINANCIAL INC
20DEC02 - 6MAY05
HI-28MAY04
IGM.T

104.321
IGM Financial
IGM FINANCIAL INC Rel. S&P/TSX COMPOSITE INDEX

100.00

95.00
LO/HI DIFF

CLOSE
14.48%

99.088 (TSX - IGM)

LO-16JAN04 91.125
D J F M A M 2003
J J A S O N D J F M A M 2004
J J A S O N D J F2005
M AM
HI-11MAR05 39.900

Outperform
IGM FINANCIAL INC
LO/HI DIFF 69.07%
38.00
36.00
34.00
32.00
30.00
28.00
CLOSE 37.970
Average Risk
Q1/05 Results – In Line With Expectations Despite Some
26.00

24.00 LO-7MAR03 23.600

1800

Minor Variances. No Change to Estimates or Target.

1200
PEAK VOL. 2071.3
600 VOLUME 408.6

Drew McReynolds, CA, CFA Event

(416) 842-3805 IGM Financial reported Q1/05 results.
drew.mcreynolds@rbccm.com
Investment Opinion
Price: $37.97 Price Target: $41.50 • Q1/05 results in line with some minor variances – Q1/05 revenues
52-Wk High: $39.90 52-Wk Low: $31.78 of $573MM were higher than our $567MM estimate, reflecting higher
Float (MM): 106.6 Debt-to-Cap: 0.3X net investment income ($50MM versus $41MM) arising from $4MM
Shs O/S (MM): 264.7 Mkt Cap (MM): $10,051 in non-recurring income. Higher revenues were offset by higher than
Dividend: $1.29 Yield: 3.4% expected commission expense ($176MM versus $169MM estimate)
Strategic Shareholders:
resulting from seasonality and a higher than expected contribution
Power Financial - 56%
Great-West Lifeco - 4%
from IPC Financial ($17MM). EBITDA was $327MM versus our
FY Dec 2003A 2004A 2005E 2006E
$324MM estimate, translating into an EBITDA margin of 57.1%
EPS $2.01 $2.32 $2.54 $2.85 versus our 57.2% estimate. EPS of $0.60 was basically in line with
P/E 18.9 16.4 15.0 13.3 our $0.61 estimate. Q1/05 ROE of 19.4% was just shy of our 19.9%
EBITDA($MM) 1,139 1,139 1,349 1,494 and represented a slight decrease from 19.8% in Q1/04.
EV/EBITDA 8.0 7.5 6.8 6.1
• Seasonality, IPC Financial and AUM growth boost expenses –
EPS Q1 Q2E Q3E Q4E
Q1/05 commission and non-commission expenses increased to
2003A $0.45 $0.49 $0.53 $0.54 $176MM and $143MM, respectively, compared to $144MM and
2004A $0.56 $0.57 $0.58 $0.61 $137MM in Q1/04 and $164MM and $125MM in Q4/04. Seasonal
2005E $0.60 $0.64 $0.64 $0.65 factors, the inclusion of IPC Financial (acquired May 2004) and
EBITDA AUM growth accounted for the bulk of the increase. Total
2003A $267 $280 $287 $299 commission and non-commission expenses remained fairly constant
2004A $303 $308 $313 $329 at 38bp in Q1/05 compared to 37bp in Q1/04 and Q1/03.
2005E $327 $337 $340 $345
Revenue • # of advisors increases – There were 3,503 advisors at the end of
2003A $455 $460 $474 $485 Q1/05 versus 3,496 at Q4/04 and 3,219 at Q1/04. The % of
2004A $520 $523 $527 $548 experienced advisors (i.e., >4 years) held steady at 59%.
2005E $573 $572 $578 $586
All values in C$ unless otherwise noted.
• No changes to estimates and target price – Despite a number of
minor changes to our forecast, our EPS estimates and target price
remain unchanged.
• IGM Financial remains our favourite large-cap name – We
remain cautious with respect to the outlook for equity markets.
Balancing this caution with competitive position, fundamental
valuation and the potential to garner takeout premiums, IGM
Financial remains our favourite large-cap name in the group.
For Required Disclosures, please see • Valuation – By applying 6.5x and 5.5x EV/EBITDA multiples to our
page 6. blended 2006E and 2007E EBITDA estimates for the mutual fund and
non-mutual fund operations, respectively, we arrive at a $41.50 one-
year target. We believe these multiples are consistent with the growth
and risk profile and capital expenditures of the company.
RBC Capital Markets IGM Financial

Q1/05 Highlights
• Q1/05 results in line with expectations with some minor variances – Q1/05 revenues of $573MM were higher than our
$567MM estimate, reflecting higher net investment income ($50MM versus $41MM) arising from $4.2MM in non-
recurring income. Higher revenues were offset by higher than expected commission expenses ($176MM versus $169MM
estimate) arising from seasonality and a higher contribution from IPC Financial ($17MM). EBITDA was $327MM versus
our $324MM estimate, implying an EBITDA margin of 57.1% versus our 57.2% estimate. EPS of $0.60 was basically in
line with our $0.61 estimate. The remaining variance in EPS to our estimate was a higher tax rate of 30.7% versus our
29.5% estimate. Q1/05 ROE of 19.4% was just shy of our 19.9% and represented a slight decrease from 19.8% in Q1/04.

Q1/05 Results versus RBC Forecast

($000s) Q1/05A Q1/05E Q1/04A YoY
Management fees 390,650 392,067 365,080 7%
Administration fees 79,485 81,978 78,028 2%
Distribution and redemption fees 53,336 51,775 34,935 53%
Net investment income 49,625 40,748 42,360 17%
Total revenues 573,096 566,567 484,771 18%
Commission expense 175,616 168,705 143,821 22%
Non-commission expense 142,786 144,145 136,801 4%
Interest expense 17,198 16,738 18,722 -8%
Taxes 71,170 69,909 67,995 5%
Preferred dividends 5,175 5,175 5,175 0%
Net income 160,695 161,895 147,889 9%
EPS (ex-unusals) $0.60 $0.61 $0.56 8%
ROE 19.4% 19.9% 19.8%
EBITDA 327,177 324,072 303,132 8%
EBITDA margins 57.1% 57.2% 58.2%
EBIT 254,694 253,717 239,781 6%
EBIT margins 45.2% 45.5% 46.8%
Average AUM ($MM) 84,497 84,130 76,366 11%

Source: RBC Capital Markets, Company reports

• AUM growth driven by net sales and market appreciation – Average YoY AUM growth in Q1/05 at Investors
Group and Mackenzie was a healthy 8.3% following a 9.9% YoY increase in Q4/04. AUM Growth was driven by
market appreciation (+$1.3B) and RSP season net sales (+$774MM). Despite contributing $1.5B to consolidated
AUM, strong net sales momentum continued at IPC Financial with net sales of $90MM in Q1/05.

AUM Growth at Investors Group and Mackenzie

Market Performance as at March 31, 2005 Mutual Fund(1) YoY Q1/Q4
Index 3 Mo. Return 12 Mo. Return AUM Growth (C$000s) Q1/05 Q1/04 % Q4/04 %

Beginning AUM 81,640,000 74,674,100 9.3% 77,250,000 5.7%

S&P/TSX Composite Price Return (C$) 3.9% 11.9% Gross sales 3,929,287 3,582,174 9.7% 2,796,917 40.5%
S&P 500 Price Return (C$) -2.0% -6.4% Redemptions (3,154,955) (2,852,072) 10.6% (2,719,603) 16.0%
MSCI EAFE Index Price Return (C$) 0.0% 3.9% Net sales 774,332 730,102 6.1% 77,314 901.5%
MSCI World Index Price Return (C$) -1.0% 0.0% Performance 1,282,718 2,654,147 -51.7% 4,312,686 -70.3%
Ending AUM 83,697,050 78,058,349 7.2% 81,640,000 2.5%
Average AUM 82,668,525 76,366,225 8.3% 79,445,000 4.1%
(1)
Excludes $90MM in Q1/05 net sales and $1.5B in AUM from IPC Financial

Source: Bloomberg, company repor

Mutual Fund Net Sales Performance

Investors Group - Net Sales Mackenzie - Net Sales
400,000 300,000
300,000 200,000
200,000 100,000
C$000s
C$000s

100,000 0
0 -100,000
-100,000 -200,000
-200,000 -300,000
-300,000
v
n

c
g

p
r
b
ar

ct
ay

Ju
Ap

No
Ja

Ju

Au

Se

De
Fe

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
O
M

2001 2002 2003 2004 2005

2001 2002 2003 2004 2005

Source: IFIC

May 9, 2005 2
RBC Capital Markets IGM Financial

• Uptick in number of advisors – There were 3,503 advisors at the end of Q1/05, of which 59% had > 4 years experience
(versus 3,496 and 58% at Q4/04 and 3,391 and 59% at the end of Q3/04). Recruiting momentum continued in Q1/05
despite a seasonally weak recruiting period. 2004 represented the first YoY increase in the number of advisors since 1998.
The increase in advisors reflects a combination of successful recruiting efforts and lower advisor defections. The following
chart shows the recent increase in the number of advisors and gross sales and AUM per advisor.

Advisor Trends
14,000
3,900
12,000
3,700
10,000
3,500
8,000
C$000s

3,300
6,000 3,100
4,000 2,900
2,000 2,700

0 2,500
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E

Gross Sales Per Advisor AUM Per Advisor Average Number of Advisors (RH)

Source: RBC Capital Markets, Company reports

• Decent relative fund performance – For Mackenzie, 68% and 87% of funds were rated 4&5 stars and >3 stars,
respectively, while 43% and 76% of Investors Group funds were rated 4 & 5 stars and > 3 stars, respectively. The following
chart shows the average relative fund performance of the top 10 largest funds for each company in our coverage universe.
On this basis over a one-year period, Dundee Wealth and CI are the leaders followed by Mackenzie, AGF and Investors
Group.

Relative Fund Performance Among Ten Largest Funds for Each Company Under Coverage (as at March 2005)
Top 10 as Quartile
% of AUM 1 Year 3 Year 5 Year
AGF 64% 2.5 2.1 1.9
CI 52% 1.8 1.5 1.7
Clarington 87% 3.4 3.6 3.0
Dundee Wealth 57% 1.6 1.1 1.5
Investors Group 61% 2.7 n/m n/m
Mackenzie 59% 2.5 1.6 1.6
Group average 63% 2.4 2.0 1.9

Source: BellCharts

Commission and Non-Commission Expenses – Many Moving Parts

Q1/05 commission and non-commission expenses increased to $176MM and $143MM, respectively, compared to $144MM and
$137MM in Q1/04 and $164MM and $125MM in Q4/04. Seasonal factors, the inclusion of IPC Financial (acquired May 2004)
and AUM growth accounted for the bulk of the increase. Total commission and non-commission expenses were 38bp compared
to 37bp in Q1/04 and Q1/03.
Commission expenses are incurred in connection with the distribution of financial services, particularly mutual funds. In the
mutual fund segment, which accounts for 97% of total commission expenses, expenses include DSC amortization, trailer fees
and asset retention bonuses and premiums. With the acquisition of IPC Financial, the ~80% payout to advisors on revenues
earned on third-party product (revenues of which are recorded as distribution fees) are also included. Asset retention bonuses
are paid monthly and based on the month-end value of AUM. Asset retention premiums are deferred compensation that are also
based on AUM. Non-mutual fund commissions are commissions paid in connection with the insurance, mortgage, banking and
brokerage operations. Non-commission expenses are costs incurred to support Investors Group and IPC Financial advisors as
well as the administration, marketing and sub-advisory costs associated with Investors Group, Mackenzie and IPC Financial
mutual funds (including costs recovered from mutual funds). These costs account for 80% of total non-commission expenses.
Non-mutual fund non-commission expenses are operating costs associated with the insurance, mortgage, banking and brokerage
operations.

May 9, 2005 3
RBC Capital Markets IGM Financial

The following charts show the trend in these various components of commission and non-commission expense over the past 9
quarters. While there are many moving parts, total quarterly commission and non-commission expenses (as a percentage of
AUM) have remained fairly constant at 36bp (excluding Q1 seasonality). A decrease in quarterly non-commission expenses
from 20bp in Q1/03 to 17bp in Q1/05 has been largely offset by an increase in quarterly commission expenses from 17bp in
Q1/03 to 21bp in Q1/05. While the increase in commission expenses can be partly attributed to increased sales activity, the
company increased the commission rates paid to its advisors as part of Investors Group’s realignment of advisor compensation
in 2003. Of the multiple components to commission expenses, we believe asset retention premiums (i.e., deferred
compensation) arising from the realignment have the most potential to surprise on the upside and thus remain a focus for us.

Commission and Non-commission Expenses by Segment

0.40% 0.18%
0.16%
0.35% 0.14%

% of Average AUM
0.12%
% of Average AUM

0.30%
0.10%
0.25% 0.08%
0.06%
0.20% 0.04%
0.02%
0.15% 0.00%

0.10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2003 2003 2003 2003 2004 2004 2004 2004 2005 2005E 2005E 2005E
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2003 2003 2003 2003 2004 2004 2004 2004 2005 2005E 2005E 2005E MF Non-commission MF Commission MF DSC amortization

Non-commission Commission Total Expenses Non-MF Non-commission Non-MF Commission

Source: RBC Capital Markets, Company reports

As shown below, Investors Group accounted for approximately 47% of total commission and non-commission expenses in
Q1/05 while Mackenzie accounted for 45% and IPC Financial the remaining 8%. IPC generated approximately $27MM in
revenues in Q1/05 (management fees $7MM, administration revenues $1MM, distribution revenues $19MM) while incurring
$25MM in commission ($17MM) and non-commission ($8MM) expenses. YoY comparisons are not available as IPC Financial
was acquired in May 2004 (i.e., Q2/04). Investors Group commission and non-commission expenses have increased from 29bp
in Q1/03 to 32bp in Q1/05, while Mackenzie’s commission and non-commission expenses have decreased from 47bp to 40bp
over the same period.

Commission and Non-commission Expenses by Company

350,000 0.50%

300,000 0.45%
250,000
% of Average AUM

0.40%
200,000
C$000

0.35%
150,000
0.30%
100,000

50,000 0.25%

0 0.20%
Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005

Investors Group Mackenzie IPC Financial Investors Group Mackenzie

Source: RBC Capital Markets, Company reports

May 9, 2005 4
RBC Capital Markets IGM Financial

Financial Summary
The following provides a summary of our financial forecast.

Financial Forecast
Market Data RBCCM Target Long-term Assumptions Per Share Statistics

Share Price: $37.97 Rating: Outperform Gross sales (% of AUM) 15.3% 2003 2004 2005E 2006E
52-week High: $39.90 Risk: Average Redemptions (% of AUM) -13.0% EPS 2.01 2.32 2.54 2.85
52-week Low: $31.78 1-yr. Price Target: $41.50 Net Sales 2.3% P/E 18.9x 16.4x 15.0x 13.3x
10-day Average Volume: 94,050 Dividend Yield: 3.4% Mkt. Performance (% of AUM) 8.0% EV/AUM 12.3% 11.2% 10.1% 9.1%
Shares Outstanding (Basic MM): 265 AUM Growth 10.3% OCFPS 3.22 3.44 3.79 4.16
Market Capitalization (MM): $10,049 P/OCFPS 11.8x 10.6x 10.0x 9.1x
Enterprise Value (MM) $9,154 Op. Margin 60.7% 59.1% 58.4% 59.8%
Annual Dividend: 1.29

2002 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 2004 Q1 2005 Q2 2005E Q3 2005E Q4 2005E 2005E 2006E
Retail Assets Under Management ($MM))
Investors Group 37,588 40,904 42,675 42,536 42,300 44,510 44,510 45,508 45,940 46,836 47,867 47,867 52,576
Mackenzie 30,860 33,770 35,383 35,847 34,950 37,130 37,130 38,189 38,857 39,829 40,824 40,824 45,615
IPC Financial - - - 663 1,359 1,500 1,500 1,580 1,620 1,660 1,701 1,701 1,872
Total 68,448 74,674 78,058 79,046 78,609 83,140 83,140 85,277 86,417 88,325 90,393 90,393 100,062
Income Statement ($ millions)
Revenues
Management fees 1,389 1,296 365 372 372 383 1,492 391 405 411 419 1,625 1,788
Administration fees 297 287 78 76 74 72 300 79 75 75 75 304 321
Distribution and redemption fees 139 131 35 39 44 46 164 53 49 48 48 198 207
Net investment income 127 160 42 37 37 47 163 50 43 44 44 181 183
Total revenue 1,952 1,874 520 523 527 548 2,119 573 572 578 586 2,308 2,499
Expenses
Commission expense 497 475 144 154 155 164 617 176 172 175 180 703 766
Non-Commission expense 548 494 137 127 127 125 515 143 135 137 137 552 561
Restructuring costs and other - (25) - 0 1 0 1 0 0 0 0 2 2
Interest expense (incl. preferreds) 101 106 24 24 24 24 75 22 22 22 22 88 76
Taxes 317 299 68 67 67 73 274 71 72 72 73 289 334
Total expenses 1,459 1,346 372 371 373 386 1,483 412 402 407 413 1,635 1,740
Net Income 492 528 148 163 154 161 636 161 170 170 173 674 758
EBIT 920 917 244 247 250 263 1,002 259 269 270 273 1,068 1,186
Amortization of DSC 204 194 54 55 57 60 227 63 62 64 66 255 284
Depreciation 27 27 5 5 6 6 23 6 6 6 6 23 24
EBITDA 1,150 1,139 303 308 313 329 1,252 327 337 340 345 1,348 1,494
Ratio Analysis
Per Share Data
Reported EPS - f.d. (excl. unusuals) 1.86 2.01 0.56 0.57 0.58 0.61 2.32 0.60 0.64 0.64 0.65 2.54 2.85
EBITDA - f.d. 4.34 4.29 1.14 1.16 1.18 1.24 4.72 1.23 1.26 1.27 1.29 5.06 5.61
Operating Cash Flow - f.d. 3.01 3.22 0.89 0.89 0.83 0.83 3.44 0.97 0.93 0.93 0.95 3.79 4.16
Free Cash Flow - f.d. 1.91 2.30 0.51 0.61 0.57 0.55 2.24 0.54 0.56 0.58 0.59 2.27 2.53
Book Value Common Equity - f.d. $10.12 $10.84 $11.05 $11.45 $12.16 $11.90 $11.90 $12.16 $13.00 $13.31 $13.63 $13.65 $15.05

Profitability
EBITDA Margin 58.9% 60.7% 58.2% 58.8% 59.3% 60.1% 59.1% 57.1% 58.9% 58.8% 58.9% 58.4% 59.8%
EBIT Margin 47.1% 48.9% 46.8% 47.2% 47.3% 48.0% 47.3% 45.2% 47.0% 46.7% 46.6% 46.3% 47.5%
Net Profit Margin 25.2% 28.2% 28.4% 29.1% 29.2% 29.5% 29.1% 28.0% 29.7% 29.5% 29.5% 29.2% 30.4%
ROE 19.4% 19.5% 19.8% 20.5% 19.7% 20.2% 20.5% 19.4% 20.4% 19.6% 19.5% 20.0% 20.0%

Valuation Multiples
EV/Total AUM 13.6% 12.3% 12.0% 11.8% 11.9% 11.2% 11.2% 10.7% 10.6% 10.4% 10.1% 10.1% 9.1%
EV/EBITDA (using current debt; ex GWO) 8.1 8.0 7.7 7.6 7.5 7.1 7.5 7.0 6.8 6.7 6.6 6.8 6.1
Price/Book Value 3.61 3.50 3.31 3.19 3.00 3.07 3.07 3.12 2.92 2.85 2.79 2.78 2.52
Price/Earnings 19.7 18.9 16.4 15.9 15.8 15.1 15.7 15.7 14.9 14.8 14.6 15.0 13.3
Price/Operating Cash Flow 12.1 11.8 10.3 10.3 11.0 11.0 10.6 9.7 10.2 10.2 10.0 10.0 9.1
Average basic shares o/s (000s) 263,487 263,915 264,167 264,371 264,634 264,431 264,431 264,647 264,647 264,647 264,647 264,431 264,647
Average fully diluted shares o/s (000s) 264,873 265,174 265,743 265,960 266,186 266,010 265,174 266,415 266,415 266,415 266,415 266,010 266,415

Source: Company reports, RBC Capital Markets estimates

Price Target Impediments

Impediments to the shares reaching our one-year target include acceleration in the rate of advisor defections at Investors
Group; deterioration in competitive position within the independent advisor channel at Mackenzie, resulting in increased

May 9, 2005 5
RBC Capital Markets IGM Financial

sales, marketing and distribution costs; accelerated pricing pressure; or the resumption of a cyclical bear market that takes
market indices substantially lower from current levels.
Company Description
IGM Financial is Canada’s largest mutual fund company, with $85 billion in Canadian retail assets under management.
IGM Financial offers other financial services such as pension plans, tax-sheltered plans, mortgages, insurance and
brokerage services.

Required Disclosures
Explanation of RBC Capital Markets Rating System
An analyst's "sector" is the universe of companies for which the analyst provides research coverage. Accordingly, the rating
assigned to a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months
relative to the analyst's sector.
Ratings
Top Pick (TP): Represents best in Outperform category; analyst's best ideas; expected to significantly outperform the sector
over 12 months; provides best risk-reward ratio; approximately 10% of analyst's recommendations.
Outperform (O): Expected to materially outperform sector average over 12 months.
Sector Perform (SP): Returns expected to be in line with sector average over 12 months.
Underperform (U): Returns expected to be materially below sector average over 12 months.
Risk Qualifiers (any of the following criteria may be present):
Average Risk (Avg): Volatility and risk expected to be comparable to sector; average revenue and earnings predictability; no
significant cash flow/financing concerns over coming 12-24 months; fairly liquid.
Above Average Risk (AA): Volatility and risk expected to be above sector; below average revenue and earnings predictability;
may not be suitable for a significant class of individual equity investors; may have negative cash flow; low market cap or float.
Speculative (Spec): Risk consistent with venture capital; low public float; potential balance sheet concerns; risk of being
delisted.
Distribution of Ratings, Firmwide
For purposes of disclosing ratings distributions, regulatory rules require member firms to assign all rated stocks to one of three
rating categories−Buy, Hold/Neutral, or Sell−regardless of a firm's own rating categories. Although RBC Capital Markets' stock
ratings of Top Pick/Outperform, Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell,
respectively, the meanings are not the same because our ratings are determined on a relative basis (as described above).

May 9, 2005 6
RBC Capital Markets IGM Financial

In the event that this is a compendium report (covers more than six subject companies), RBC Capital Markets may choose to
provide specific disclosures for the subject companies by reference. To access current disclosures, clients should refer to
http://rbc2.bluematrix.com/bluematrix/Disclosure?f=34 Ydf8xF or send a request to RBC Capital Markets Research Publishing,
P.O. Box 50, 200 Bay Street, Royal Bank Plaza, 29th Floor, South Tower, Toronto, Ontario M5J 2W7.
References to a Recommended List in the recommendation history chart may include one or more recommended lists or model
portfolios maintained by a member company of RBC Capital Markets or one of its affiliates. RBC Capital Markets
Recommended Lists include the Strategy Focus List and the Fundamental Equity Weightings (FEW) portfolios. RBC Dain
Rauscher Inc. Recommended Lists include the Western Region Focus List (1), a former list called Model Utility Portfolio (2),
and the Prime Opportunity List (3) (formerly called the Private Client Selects), Private Client Prime Portfolio (4), a former list
called Private Client Portfolio (5), and the Prime Income List (6). The abbreviation "RL On" means the date a security was
placed on a Recommended List. The abbreviation "RL Off" means the date a security was removed from a Recommended List.
Analyst Certification
All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of
the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or
indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.
Dissemination of Research
RBC Capital Markets endeavours to make all reasonable efforts to provide research simultaneously to all eligible clients. RBC
Capital Markets' equity research is posted to our proprietary websites to ensure eligible clients receive coverage initiations and
changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email,
fax or regular mail. Clients may also receive our research via third party vendors. Please contact your investment advisor or
institutional salesperson for more information regarding RBC Capital Markets research.
Important Disclosures
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including
total revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been
generated by investment banking activities of the member companies of RBC Capital Markets and its affiliates.
The author(s) of this report are employed by RBC Dominion Securities Inc., a securities broker-dealer with principal offices
located in Toronto, Canada.

Additional Disclosures
The information contained in this report has been compiled by RBC Capital Markets (“RBC CM”) from sources believed to be reliable, but no representation or
warranty, express or implied, is made by Royal Bank of Canada, RBC CM, its affiliates or any other person as to its accuracy, completeness or correctness. RBC

May 9, 2005 7
RBC Capital Markets IGM Financial
Capital Markets is a business name used by subsidiaries of the Royal Bank of Canada including RBC Dominion Securities Inc., RBC Capital Markets Corporation,
Royal Bank of Canada Europe Limited and Royal Bank of Canada - Sydney Branch. All opinions and estimates contained in this report constitute RBC CM’s
judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. This report is not an offer to
sell or a solicitation of an offer to buy any securities. RBC CM and its affiliates may have an investment banking or other relationship with some or all of the issuers
mentioned herein and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. Accordingly, the entities
constituting RBC CM or their affiliates may at any time have a long or short position in any such security or option thereon. Every province in Canada, state in the U.S.,
and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as
well as the process for doing so. As a result, the securities discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no
circumstances should be construed as, a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to
carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the
particular circumstances or needs of any specific person who may read it. To the full extent permitted by law neither RBC CM or any of its affiliates, nor any other
person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein. No matter contained
in this document may be reproduced or copied by any means without the prior consent of RBC CM. The entities comprising RBC Capital Markets are wholly owned
subsidiaries of the Royal Bank of Canada and are members of the RBC Financial Group.

Additional information is available on request.

To U.S. Residents:
This publication has been approved by RBC Capital Markets Corporation, which is a U.S. registered broker-dealer and which accepts responsibility for this report and
its dissemination in the United States. Any U.S. recipient of this report that is not a registered broker-dealer or a bank acting in a broker or dealer capacity and that
wishes further information regarding, or to effect any transaction in, any of the securities discussed in this report, should contact and place orders with RBC Capital
Markets Corporation.

To Canadian Residents:
This publication has been approved by RBC Dominion Securities Inc. Any Canadian recipient of this report that is not a Designated Institution in Ontario, an
Accredited Investor in British Columbia or Alberta or a Sophisticated Purchaser in Quebec (or similar permitted purchaser in any other province) and that wishes
further information regarding, or to effect any transaction in, any of the securities discussed in this report should contact and place orders with RBC Dominion
Securities Inc., which, without in any way limiting the foregoing, accepts responsibility for this report and its dissemination in Canada.

To U.K. Residents:
This publication has been approved by Royal Bank of Canada Europe Limited (“RBCEL”) which is authorized and regulated by Financial Services Authority (“FSA”),
in connection with its distribution in the United Kingdom. This material is not for distribution in the United Kingdom to private customers, as defined under the rules of
the FSA. RBCEL accepts responsibility for this report and its dissemination in the United Kingdom.

To Persons Receiving This Advice in Australia:

This material has been distributed in Australia by Royal Bank of Canada - Sydney Branch (ABN 86 076 940 880). This material has been prepared for general
circulation and does not take into account the objectives, financial situation or needs of any recipient. Accordingly, any recipient should, before acting on this material,
consider the appropriateness of this material having regard to their objectives, financial situation and needs. If this material relates to the acquisition or possible
acquisition of a particular financial product, a recipient in Australia should obtain any relevant disclosure document prepared in respect of that product and consider that
document before making any decision about whether to acquire the product.

To Hong Kong Residents:

This publication is distributed in Hong Kong by RBC Investment Services (Asia) Limited, a licensed corporation under the Securities and Futures Ordinance. This
material has been prepared for general circulation and does not take into account the objectives, financial situation, or needs of any recipient. Hong Kong persons
wishing to obtain further information on any of the securities mentioned in this publication should contact RBC Investment Services (Asia) Limited at 17/Floor, Cheung
Kong Center, 2 Queen's Road Central, Hong Kong (telephone number is 2848-1388).
Copyright © RBC Capital Markets Corporation 2005 - Member SIPC
Copyright © RBC Dominion Securities Inc. 2005 - Member CIPF
Copyright © Royal Bank of Canada Europe Limited 2005
Copyright © Royal Bank of Canada 2005
All rights reserved

May 9, 2005 8