Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Investor Presentation (March 2022)
30 slides from Power Corporation Of Canada's investor presentation, March 2022
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation March 2022
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 "Abbreviations" in the Appendix hereto. Forward Looking Statements In the course of today’s meeting, representatives of the Corporation may make, in their remarks or in respon
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 readers in their analysis of the
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG NAV Adjusted net asset value Ark Life Ark Life Assurance Company dac NCI Non-controlling interests AUM Assets under management NCIB Normal course issuer bid AUM&A Assets under management and advisement
Slide 5: Reference information
Reference information Websites Fourth Quarter Results & Recent Events Q4 2021 Conference Call March 18, 2022 Q4 2021 Earnings Release March 17, 2022 www.powercorporation.com RBC Capital Markets Global Financial Institutions Conference March 8, 2022 Q4 2021 Conference Call February 10, 2022 w
Slide 6: Introduction to Power Corporation
Introduction to Power Corporation
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 2021 Net 2021 Base Total Assets Great-West Lifeco is an international Earnings1 Earnings1,2 Under Administration3,4 financial services holding company with interests in life insurance, health insurance, $3.1 $3.3 $2.3 retirement and investment services, asset BILLION BILLI
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 Wealth Asset Strategic financial advisors and the clients they serve Management Management Investments in Canada, and institutional
Slide 10: GBL overview
GBL overview 2021 Net 2021 Cash 2021 Total GBL is a leading investor in Europe, building Results1 Earnings2 Share Buybacks leading companies through long-term €279 €474 €407 engaged and responsible ownership. MILLION MILLION MILLION Invests in and supports European industry leaders with strong mar
Slide 11: Net asset value
Net asset value Adjusted Net Asset Value (“NAV” or “Net Asset Value”)1 per share of $52.60 at December 31, 2021, compared with $41.27 at December 31, 2020, an increase of 27% • NAV per share of $50.11 at March 17th, 20222 Book value per participating share3 was $34.56 at December 31, 2021, compa
Slide 12: 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 13: Simplification of Power's group structure
Simplification of Power’s group structure Pre-December 2019 Reorganization December 31, 2021 64% 67% 62% 15% Power Power Non-Public Non-Public Investments Investments 67% 62% 28% 50% POWER CORPORATION OF CANADA | MARCH 2022 13
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 2022 14
Slide 15: Guiding principles underlying Power's value creation strategy
Guiding 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 POWER
Slide 16: Power group's 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 Actions we can ta
Slide 17: Value creation levers focused on increasing earnings and value
Value creation levers focused on increasing earnings and value Power TSX: POW Discount to underlying value Alternative Investment Publicly-Traded Platforms Great-West IGM GBL Power Standalone Cash & Asset TSX: GWO TSX: IGM Euronext: GBLB Sagard Sustainable ChinaAMC Businesses Other Assets Primarily
Slide 18: 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 19: Value-enhancing transactions 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 20: 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 Power group’s interest valued at $2.6 billion, including $500 million returned as part of a Wealthsimple $250 million primary, secondary offering
Slide 21: Development of Power's investment platforms
Development of Power’s investment platforms Operate in asset classes where we can create competitive advantage Raise and manage primarily third-party capital, with Power acting as a provider of seed capital Demonstrate the ability to be profitable as an asset manager within a reasonable time p
Slide 22: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $19.1 billion of funded and unfunded AUM as of December 31, 20211, up 125% over $8.5 billion as at December 31, 2020 • $4.2 billion raised from third party investors across the platforms’ strategies in 2021 • $5.4 billion AUM through Ev
Slide 23: Power's alternative asset management strategy is part of 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 24: Power Group continues to simplify its corporate structure
Power Group continues to simplify its corporate structure On January 5, 2022, Power announced an agreement under which the Group’s current combined 27.8% equity ownership stake in ChinaAMC will be consolidated under IGM Power to sell its 13.9% interest in ChinaAMC to Mackenzie, a wholly owned subs
Slide 25: Standalone businesses are an additional source of value creation
Standalone businesses are an additional source of value creation The standalone businesses, representing $1.3 billion1 of NAV in aggregate will be managed by Power to realize value over time In October 2021, Power monetized its interest in GP Strategies through its merger with Learning Technologie
Slide 26: Power has achieved holdco operating expense reduction target of $50 million
Power has achieved holdco operating expense reduction target of $50 million Reorganization of asset management activities Rationalization of real estate business Restructuring of the Group’s research and advisory Reduction of certain public company expenses of services model Power Financial
Slide 27: Elevated 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 Meeting
Slide 28: Power Group continues to make progress on ESG initiatives
Power Group continues to make progress on ESG initiatives In 2021, for the second consecutive year, Power was one of the only three Canadian companies to receive the top score of A (Leadership) from the CDP. Worldwide, it was one of 200 companies to receive this score Great-West committed to net
Slide 29: Power discount to NAV
Power discount to NAV1 Power’s discount to NAV has been narrowing with increased corporate activity Great-West sale of 40% U.S. life business announced Power / PFC reorganization 35% announced WHO declares global pandemic Wealthsimple fundraising & 30% Dec’15 to Dec’18 Lion merger 34% average discou
Slide 30: 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 OpCo Continue to drive earnings growth at OpCos, building on significant business momentum 1 Organic • Broad-b
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