Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — RBC Capital Markets Global Financial Institutions Conference 2021
31 slides from Power Corporation Of Canada's conference presentation, March 2021
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation RBC Capital Markets Global Financial Institutions Conference March 2021
Slide 2: Forward looking statements and COVID-19
Forward looking statements and COVID-19 Forward Looking Statements In the course of today’s meeting, representatives of the Corporation may make, in their remarks or in response to questions, and the accompanying materials may include, statements containing forward-looking information. Certain state
Slide 3: Disclosures concerning public investees and non-IFRS measures
Disclosures concerning public investees and non-IFRS measures Disclosures Concerning Public Investees Information in this presentation and any accompanying oral statements, including in response to questions, (i) concerning Great-West Lifeco and IGM, as applicable, has been derived from Great-West L
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: AUA Assets under administration MassMutual Massachusetts Mutual Life Insurance Company AUM Assets under management NAV Net asset value Canada Life The Canada Life Assurance Company NCIB Normal course issuer bid China AM
Slide 5: Reference information
Reference information Websites Fourth Quarter and Year-End Reporting Dates Q4 2020 Earnings Release March 17, 2021 www.powercorporation.com Q4 2020 Conference Call March 18, 2021 TSX: POW Q4 2020 Earnings Release February 10, 2021 www.greatwestlifeco.com Q4 2020 Conference Call February 11,
Slide 6: Introduction to Power Corporation
Introduction to Power Corporation POWER CORPORATION OF CANADA | MARCH 2021 1
Slide 7: Power Corporation of Canada is a publicly-listed holding company controlled by the Desmarais family
Power Corporation of Canada (PCC) is a publicly-listed holding company controlled by the Desmarais family since 1968 International management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth manageme
Slide 8: Great-West Lifeco overview
Great-West Lifeco overview 2020 Net 2020 Base Total Assets Great-West Lifeco is an international Earnings Earnings1 Under Administration1,3 financial services holding company with interests in life insurance, health insurance, $2.943 $2.669 $1.976 retirement and investment services, asset BILLION BI
Slide 9: IGM Financial overview
IGM Financial overview IGM Financial Inc. is a leading wealth and The company creates value for shareholders through three key areas asset management company supporting financial advisors and the clients they Wealth Asset Strategic serve in Canada, and institutional investors Management Management I
Slide 10: GBL overview
GBL overview 2019 Net 2019 Cash 2019 Total GBL is a leading investor in Europe, Results1 Earnings2 Distribution building leading companies through long- €705 €595 €508 term engaged and responsible ownership. MILLION MILLION MILLION Invests in and supports European industry leaders with strong mark
Slide 11: Net asset value
Net asset value 79% of PCC’s gross asset value is comprised of publicly-traded operating companies Sep. 30, % of Gross Wealthsimple’s Oct’20 investment round ($ millions) 2020 Asset Value values PCC group’s investment at Great-West Lifeco $16,139 54.7% $934 million, held between PCC, Great-West Pu
Slide 12: PCC has been pursuing a focused strategy emphasizing financial services since its re-organization
PCC has been pursuing a focused strategy emphasizing financial services since its re-organization in February 2020 Focused upon financial services, not diversification Publicly-traded operating companies pursuing organic and inorganic value-creation strategies Surfacing incremental value by: •
Slide 13: Simplification of PCC's group structure in 2020
Simplification of PCC’s group structure in 2020 Pre-December 2019 Reorganization December 31, 20201 64% 67% 62% 14% PCC Non- PCC Non-Public Public Investments Investments 67% 62% 28% 50% 1 On December 31, 2020, PCC completed an internal share capital reorganization. Prior to the internal reorganizat
Slide 14: Focused business model in financial services
Focused business model in financial services Two main distribution …offering three …in a limited number of channels product offerings developed markets Group Accumulation Decumulation Advisor Insurance POWER CORPORATION OF CANADA | MARCH 2021 9
Slide 15: Guiding principles underlying PCC's value creation strategy
Guiding principles underlying PCC’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 POWER CO
Slide 16: PCC group of companies' ongoing value creation strategy is focused on three key levers
PCC 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 Actions we can take
Slide 17: Value creation levers focused on increasing earnings and net asset value
Value creation levers focused on increasing earnings and net asset value PCC TSX: POW Discount to underlying value Alternative Investment Publicly-Traded Platforms1 Great-West IGM GBL Sagard Power Stand-Alone Cash & Asset TSX: GWO TSX: IGM Euronext: GBLB Holdings Sustainable China AMC Businesses Oth
Slide 18: Value creation by publicly-traded operating companies
Value creation by publicly-traded operating companies Capitalize on significant past investments to drive higher earnings and cash flow growth Pursue M&A transactions to enhance earnings and strategic positioning Continue review of portfolio to ensure it meets growth / return objectives Clea
Slide 19: A significant number of value-enhancing transactions were completed during 2020
A significant number of value-enhancing transactions were completed during 2020 Date Event Size Overview Reorganization of Completed the reorganization of PFC and PCC to eliminate dual holding company February $8.7 billion PCC and PFC structure Reorganization of Announced reorganization of Parge
Slide 20: Recent activity publicly validates past investments by PCC
Recent activity publicly validates past investments by PCC From US$3Bn AUM digital wealth pioneer in 2016 to US$13Bn AUM industry best-in-class hybrid digital wealth manager in 2020 US$1.0 billion1 acquisition by Empower closed in August 2020. Personal Capital’s leading financial planning capabi
Slide 21: Development of PCC's investment platforms
Development of PCC’s investment platforms Operate in asset classes where we can create competitive advantage Raise and manage primarily third-party capital, with PCC acting as a provider of seed capital Demonstrate the ability to be profitable as an asset manager within a reasonable time perio
Slide 22: Sagard Holdings and Power Sustainable Capital continue to develop their businesses
Sagard Holdings and Power Sustainable Capital continue to develop their businesses Development and launch of alternative investment strategies • Sagard NewGen launches in Sep’20 • Sagard Holdings introduces its middle-market Canadian private equity unit in Jan’21 • Power Sustainable launches its E
Slide 23: China AMC's growth has accelerated in 2020
China AMC’s growth has accelerated in 2020 27.8% interest in China AMC: 13.9% held by each of PCC and IGM #1 onshore ETF issuer, #2 Chinese long-term mutual fund manager by market share PCC’s share of China AMC income was $12M in Q4’201, compared to $7M in Q4’19 AUM2 was RMB¥ 1,461 billion a
Slide 24: Standalone businesses – An additional source of value creation
Standalone businesses – An additional source of value creation PCC will manage standalone businesses to realize value over time Q3’20 Ownership Business Valuation Basis Highlights North American leader in electric transportation 32.4%1 Announced intended merger with Northern Genesis, a special pur
Slide 25: PCC and its OpCos have made progress in communicating with the investment community in 2020
PCC and its OpCos have made progress in communicating with the investment community in 2020 Base earnings metric introduced in Q1’20 New segment disclosure in Q1’20: Canada, U.S., Europe and Capital & Risk Solutions Enhanced Source of Earnings disclosure in Q2’20 New segment disclosure intro
Slide 26: Value creation roadmap
Value creation roadmap Capitalize on significant past investments to drive higher organic OpCo earnings growth 1 Organic Enhance communications to provide Levers market greater visibility of earnings potential Higher EPS growth Potential multiple revisions at OpCos OpCo 2 M&A Augment earni
Slide 27: Appendix
Appendix POWER CORPORATION OF CANADA | MARCH 2021 22
Slide 28: Sagard Holdings is a multi-strategy alternative asset manager with a global presence
Sagard Holdings is a multi-strategy alternative asset manager with a global presence US$4.9B 4 6 100+ Assets Under Management1 Asset Classes Strategies Professionals Diversified LP base of leading Multi-strategy alternative asset Canadian base with a global investors manager with a wealth pres
Slide 29: Portag3 Ventures Overview
Portag3 Ventures Overview Portag3 Ventures is a global fintech investor focused on identifying visionary entrepreneurs building the next generation of financial services companies. Our global focus enables us to leverage common knowledge from one region to another. $819M $618M 38 2016 18%+ COMMITTED
Slide 30: Power Sustainable Capital invests in sustainable strategies with a focus on long-term profitability
Power Sustainable Capital invests in sustainable strategies with a focus on long-term profitability Power Sustainable leverages its investment capabilities and those of its partners to build projects of significance that benefit the planet, assure steady growth and create long-term value Teams a
Slide 31: Operating expense reduction
Operating expense reduction As of September 30, 2020, we have implemented actions to achieve 47% of the targeted expense reductions, or $23.5M on an annual run-rate basis Retirement of Co-CEOs and changes in governance Certain PFC public company expenses eliminated Restructuring of Group’s res