Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q4 2020 Earnings Presentation
33 slides from Power Corporation Of Canada's earnings presentation, Mar 18, 2021
Slide 1: Investor Presentation Q4 and Year-End 2020 Results
Investor Presentation Q4 and Year-End 2020 Results March 18th, 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, non-IFRS measures and clarifications on Net Asset Value
Disclosures concerning public investees, non-IFRS measures and clarifications on Net Asset Value 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,
Slide 4: Conference call participants
Conference call participants R. Jeffrey Orr President and Chief Executive Officer Gregory D. Tretiak, FCPA, FCA Executive Vice-President and Chief Financial Officer POWER CORPORATION OF CANADA RESULTS PRESENTATION | Q4 AND YEAR-END 2020 4
Slide 5: Q4 2020 Highlights
Q4 2020 Highlights POWER CORPORATION OF CANADA RESULTS PRESENTATION | Q4 AND YEAR-END 2020 5
Slide 6: PCC and publicly traded operating companies
PCC and publicly traded operating companies This call follows a number of recent events held by PCC and its publicly traded operating companies Investors are encouraged to contact the companies directly for specific inquiries Event / Date Contact Q4 2020 Earnings Release March 17, 2021 RBC C
Slide 7: Power Corporation – Recent business highlights
Power Corporation – Recent business highlights November 20 Merger of Pargesa and Parjointco completed November 30 Lion Electric announces merger agreement with Northern Genesis December 1 Mackenzie Investments strengthens commitment to SRI investing by forming new investment boutique with Gree
Slide 8: Power Corporation financial highlights – Q4 2020
Power Corporation financial highlights – Q4 2020 NAV per share1 of $41.27 at December 31, 2020, compared with $34.94 at September 30, 2020, an 18% increase • NAV per share increased an additional 8% to $44.56 at March 17, 20212 Net earnings per share of $0.92, compared with $0.42 in Q4 2019 Ad
Slide 9: Net asset value
Net asset value % of Gross NAV per share of $41.27 at Dec. 31, ($ billions) Dec. 31, 2020 Asset Value 2020, up $6.33 or 18% compared to Great-West Lifeco $18.8 $34.94 at Sep. 30, 2020, primarily Publicly 55.7% Traded IGM Financial 5.1 15.1% driven by increases of: Operating GBL 2.9 8.5% Companies(
Slide 10: PCC earnings per share
PCC earnings per share Net earnings per share of $0.92, compared with $0.75 in Q3’20 and $0.42 in Q4’19 Adjusted net earnings per share of $0.93, compared with $0.65 in Q3’20 and $0.84 in Q4’19 ($ per share) Q4'20 Q3'20 Q4'19 Great-West Lifeco 0.73 0.67 0.84 IGM 0.19 0.20 0.18 GBL 0.02 (0.02) 0.
Slide 11: PCC is pursuing a focused strategy emphasizing financial services
PCC 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 businesses
Slide 12: 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 13: 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 14: Value creation focus of the publicly traded operating companies
Value creation focus of the 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 objecti
Slide 15: Operational highlights underscore the significant momentum generated by publicly traded operating companies
Operational highlights underscore the significant momentum generated by publicly traded operating companies $2.0 trillion of AUA, including Record high $240 billion of Successful exchange offer US$1 trillion at Empower AUM&A leading to a simplified structure and an increase in free float Ind
Slide 16: MassMutual and Personal Capital acquisitions strengthen Empower
MassMutual and Personal Capital acquisitions strengthen Empower in both the DC and individual wealth markets MassMutual builds upon Empower’s clear number 2 position in the consolidating DC market Acquisition is expected to be highly accretive to earnings and cash flow Personal Capital adds a hi
Slide 17: Positive and growing core net earnings at Putnam
Positive and growing core net earnings at Putnam Putnam profitability benefiting from revenue growth and cost containment initiatives Core Net Earnings(1) (US$ millions) 271 235 238 226 190 20.6% 11.7% 11.9% 7.2% (16.1%) (200) (210) (218) (221) (215) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Core Ne
Slide 18: Record high AUM and net flows at Mackenzie
Record high AUM and net flows at Mackenzie Q4 and 2020 net sales reached record highs of $1.7 billion and $6.2 billion, respectively Total assets under management at an all-time high of $187 billion Momentum continuing into 2021 with record high net sales Assets Under Management Long-Term Fund
Slide 19: Rapid growth in Wealthsimple's business during a period of market volatility
Rapid growth in Wealthsimple’s business during a period of market volatility One of Canada’s largest and fastest-growing digital investing services $9.7B of assets under administration as at December 31, 2020, a 94% year-over-year growth, demonstrating resilience throughout a volatile COVID-19 d
Slide 20: Lion Electric merger with Northern Genesis
Lion Electric merger with Northern Genesis On November 30, 2020, Lion Electric announced a merger agreement with Northern Genesis, after which it is expected to be listed on the TSX and NYSE North American leader in electric transportation. The company creates, designs, and manufactures all-electr
Slide 21: Sagard Holdings and Power Sustainable have both developed their businesses substantially
Sagard Holdings and Power Sustainable have both developed their businesses substantially Development of multi-year strategies Significant ongoing fundraising and product development $5.6 billion of AUM, of which 46% from 3rd parties, and $2.9 billion of unfunded commitments, of which 80% from
Slide 22: Significant progress made in launching new strategies and raising third party capital
Significant progress made in launching new strategies and raising third party capital Launch of Sagard NewGen, focused on healthcare and technology, in Sep’20 Acquired control of Grayhawk Investment Strategies in Oct’20 US$650 million first closing of Sagard Credit Partners II in Dec’20, with
Slide 23: China AMC's growth has accelerated in 2020
China AMC’s growth has accelerated in 2020 #1 onshore ETF issuer, #2 Chinese long-term mutual fund manager by market share AUM1 was RMB¥ 1,461 billion as at Dec’20, a 42% increase from RMB¥ 1,032 billion as at Dec’19 PCC’s share of China AMC earnings2 was $12 million in Q4’20, compared to $7 m
Slide 24: Standalone businesses – An additional source of value creation
Standalone businesses – An additional source of value creation PCC will manage standalone businesses, valued at $1.4 billion, to realize value over time Business Q4’20 Ownership Highlights North American leader in electric transportation Announced intended merger with Northern Genesis, a special p
Slide 25: Operating expense reduction
Operating expense reduction To date, we have implemented actions to achieve 61% of the targeted expense reductions, or $31 million on an annual run-rate basis Retirement of Co-CEOs and changes in governance Certain PFC public company expenses eliminated Restructuring of Group’s research and ad
Slide 26: 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 93 meetings with investors and analysts in 2020 41 meetings with investor
Slide 27: PCC discount to NAV
PCC discount to NAV Power Corporation’s discount to NAV has been narrowing with increased corporate activity Great-West sale of 40% U.S. life business announced PCC / PFC 35% reorganization announced WHO declares global pandemic 30% Dec’15 to Dec’18 34% average discount to NAV 26% 25% 3 level share
Slide 28: 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 29: Recent acknowledgement of PCC Group's CSR progress
Recent acknowledgement of PCC Group’s CSR progress PCC and Great-West were two of only three Canadian companies to receive the top score of A (Leadership) from the CDP in 2020, making it to the 2020 Climate “A List” • Great-West placed in the top 5% of companies globally and achieved the highest r
Slide 30: Questions
Questions POWER CORPORATION OF CANADA RESULTS PRESENTATION | Q4 AND YEAR-END 2020 30
Slide 31: Appendix
Appendix POWER CORPORATION OF CANADA RESULTS PRESENTATION | Q4 AND YEAR-END 2020 31
Slide 32: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG Northern Genesis Northern Genesis Acquisition Corp. AUA Assets under administration Northleaf Northleaf Capital Partners AUM Assets under management NYSE New York Stock Exchange Canada Life The Canada L
Slide 33: GBL net asset value
GBL net asset value Portfolio companies have shown adaptability and resilience, attributable to their position as sector leaders, critical size and robustness of their balance sheets % Dec. 31, 2020 PCC Share of Sept. 30, 2020 (1) Ownership Value (€M) Value (€M) Value (€M) Listed and Private Investm
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