Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — RBC Conference 2023
32 slides from Power Corporation Of Canada's conference presentation, Mar 7, 2023
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation March 2023 All figures in Canadian dollars, unless otherwise indicated
Slide 2: Forward looking statements and disclosures concerning public investees
Forward looking statements and disclosures concerning public investees For definitions of capitalized terms used herein, see the "Abbreviations“ page Forward Looking Statements In the course of today’s meeting, representatives of the Corporation may make, in their remarks or in response to questions
Slide 3: Non-IFRS financial measures and other measures
Non-IFRS financial measures and other measures Non-IFRS Financial Measures Management uses these financial measures in its presentation and analysis of the financial performance of Power Corporation and believes that they provide additional meaningful information to listeners/readers in their analys
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Ark Life Ark Life Assurance Company dac M&A Merger and acquisitions AUM Assets under management Mackenzie or Mackenzie Financial Corporation Canada Life The Canada Life Assurance Company Mackenzie Investments ChinaAMC C
Slide 5: Reference information
Reference information Websites Fourth Quarter Results Q4 2022 Conference Call March 17, 2023 www.powercorporation.com Q4 2022 Earnings Release March 16, 2023 Q4 2022 Conference Call February 9, 2023 www.greatwestlifeco.com Q4 2022 Earnings Release February 8, 2023 Q4 2022 Conference Call F
Slide 6: Table of contents
Table of contents Introduction to Power Corporation Appendix 1: Overview of Operating Companies (OpCos) and Alternative Asset Investment Platforms Appendix 2: ESG and Community PO W E R CO R PO R AT I O N O F CAN ADA MAR C H 2 0 2 3 6
Slide 7: Introduction to Power Corporation
Introduction to Power Corporation
Slide 8: Power Corporation of Canada is a publicly-listed holding company controlled by the Desmarais family
Power Corporation of Canada (Power) is a publicly-listed holding company controlled by the Desmarais family since 1968 MARKET DIVIDEND 2021 NET CAPITALIZATION YIELD1 EARNINGS2 $24.7B 5.4% $2.9B 68.2%3,4 62.2%4 14.9%5 ALTERNATIVE ASSET INVESTMENT PLATFORMS $34.0B MARKET CAPITALIZATION 6 $10.1B MARKET
Slide 9: Adjusted net asset value (NAV)
Adjusted net asset value (“NAV” or “Net asset value”)1 NAV per share1 was $39.38 at September 30, 2022 • Publicly traded operating companies represent 80.2% of gross asset value • Investments measured at market value and cash represent 88.6% of the total assets at fair value Book value per parti
Slide 10: Power is pursuing a focused strategy emphasizing financial services
Power is pursuing a focused strategy emphasizing financial services Focused upon financial services, not diversification Publicly traded operating companies pursuing organic and inorganic value creation strategies Surfacing incremental value by: • Building alternative asset management business
Slide 11: Simplification of Power's group structure
Simplification of Power’s group structure Pre-December 2019 Reorganization Present 64% 68%1 62%1 15% Power Power Non-Public Non-Public Investments Investments 67% 62% 28% 50% 1 As of January 12, 2023 (following the closing of the previously announced ChinaAMC transaction), Power Corporation, through
Slide 12: Key principles underlying Power's value creation strategy
Key principles underlying Power’s value creation strategy Long-term perspective & investment horizon Build industry leaders with attractive growth profiles Provide active & strong governance oversight of our companies Strong financial position & prudent approach to risk management PO W E R C
Slide 13: Power group of companies' ongoing value creation strategy is focused on three key levers
Power group of companies’ ongoing value creation strategy is focused on three key levers Organic growth strategies at each of our 1 OpCo Organic Levers publicly traded operating companies (OpCos): Great-West Lifeco, IGM & GBL 2 OpCo M&A Levers Deployment and redeployment of capital Power Company Act
Slide 14: Value creation focus of the publicly traded operating companies
Value creation focus of the publicly traded operating companies Drive higher earnings and cash flow growth Pursue M&A transactions to enhance earnings and strategic positioning Continuously manage portfolio to ensure growth and return objectives are met Clearly communicate strategy to all st
Slide 15: A significant number of value-enhancing transactions were completed or announced since the reorganization
A significant number of value-enhancing transactions were completed or announced since the reorganization Date Event Size Overview Reorganization of Completed the reorganization of PFC and Power to eliminate dual holding company Feb’20 $8.7 billion Power and PFC structure Reorganization of Annou
Slide 16: Value-enhancing transactions since the reorganization (cont'd)
A significant number of value-enhancing transactions were completed or announced since the reorganization (cont’d) Date Event Size Overview $750 million Valued Power group’s interest at $2.6 billion as of the transaction date, including Wealthsimple $250 million primary, $500 million returned as p
Slide 17: Development of Power's investment platforms
Development of Power’s investment platforms Operate in asset classes where we can create competitive advantage Platforms’ growth strategy is focused on raising 3rd party capital Power invests proprietary capital in the strategies of Sagard and Power Sustainable to support their growth and deve
Slide 18: Power's alternative asset management strategy is part of the group's broader strategy in alternatives
Power’s alternative asset management strategy is part of the group’s broader strategy in alternatives Limited partner (LP) in Power Sustainable Energy Infrastructure Partnership, various Sagard funds, and invested in Northleaf and Sagard Holdings Management Inc. • Advance strategy to expand altern
Slide 19: Standalone businesses are an additional source of value creation
Standalone businesses are an additional source of value creation The standalone businesses, representing $855 million1 of NAV and $769 million of carrying value in aggregate, will be managed by Power to realize value over time Business Progress in Surfacing and Realizing Value In Q3 2022, Lion del
Slide 20: Power Corporation and its OpCos have elevated their communication programs with the investment community
Power Corporation and its OpCos have elevated their communication programs with the investment community Launched quarterly earnings call in Q1’20 New investment platform disclosure aligned with business model in Q2’20 Enhanced investment platform and non-consolidated MD&A disclosure Increas
Slide 21: Power discount to NAV
Power discount to NAV1 Power’s discount to NAV has been narrowing through execution of its value creation strategy Great-West sale of 40% U.S. life business announced Power / PFC reorganization announced 35% WHO declares global pandemic Wealthsimple fundraising & 30% Lion merger Dec’15 to Dec’18 34%
Slide 22: Opportunities for further value creation
Opportunities for further value creation Power will continue to exercise its three levers for value creation, with concrete actions and opportunities available in the short to medium-term Targeting earnings growth at OpCos, building on significant business momentum OpCo • Diversified, broad-based
Slide 23: Appendix 1: Overview of Operating Companies (OpCos) and Alternative Asset Investment Platforms
Appendix 1: Overview of Operating Companies (OpCos) and Alternative Asset Investment Platforms
Slide 24: Great-West Lifeco overview
Great-West Lifeco overview Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses operating in Canada, the United States and Europe 2022 Highlights $3
Slide 25: IGM Financial overview
IGM Financial overview IGM Financial is a leading diversified wealth and asset management company providing a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals 2022 Highlights $867 million $249.4 billion 14.0% Net
Slide 26: GBL overview
GBL overview GBL is a leading investor in Europe, focused on long-term value creation with a diversified high-quality portfolio composed of global companies, public and private, that are leaders in their sector 2021 Highlights Q3 2022 Metrics €279 million €474 million 10.8% €17.2 billion Net earning
Slide 27: Power's alternative asset investment platforms
Power’s alternative asset investment platforms Asset Management Activities Investing Activities + + = Recurring Carried Proprietary Value Fee-Related Interest Capital to Power Earnings Asset Management - Building investment platforms to deliver recurring asset management earnings Through ownership
Slide 28: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $20.0 billion of funded and unfunded AUM1 at September 30, 2022 $1.4 billion of fundraising in 2022 at September 30, 20222 Funded and Unfunded AUM Total Funded AUM and Funded AUM by Platform Sagard Power Sustainable $20.0B ($ millions
Slide 29: The Power group's fintech strategy delivers strategic benefits
In addition to delivering financial returns, the Power group’s fintech strategy delivers strategic benefits Direct ownership of innovative companies that have a high impact on the group’s existing financial services business models Make significant • Mackenzie’s partnership with Wealthsimple to de
Slide 30: Appendix 2: ESG and Community
Appendix 2: ESG and Community
Slide 31: ESG highlights
ESG highlights Our deeply rooted tradition of responsible management underpins our approach to ESG and how we are building a resilient business focused on driving sustainable long-term value CDP Leadership Commitments to global initiatives level ranking for climate disclosure Say-on-pay annual execu
Slide 32: Investing in our communities
Investing in our communities We believe in the power of the voluntary sector and social entrepreneurs, working in partnership with governments and businesses, to build a better, more inclusive society with improved opportunities for all. 2021 Highlights Initiatives funded by the Power group in 2021