Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q4 2021 Earnings Presentation
30 slides from Power Corporation Of Canada's earnings presentation, Mar 18, 2022
Slide 1: Investor Presentation Q4 and Year-End 2021 Results
Investor Presentation Q4 and Year-End 2021 Results March 18th, 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: 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 QUARTERLY RESULTS PRESENTATION | Q4 2021 4
Slide 5: Q4 and Year-End 2021 Results
Q4 and Year-End 2021 Results POWER CORPORATION OF CANADA
Slide 6: Power and publicly-traded operating companies
Power and publicly-traded operating companies This call follows a number of recent events held by Power and its publicly traded operating companies Investors are encouraged to contact the companies directly for specific inquiries Event / Date Contact Q4 2021 Earnings Release March 17, 2022 R
Slide 7: Power business highlights
Power business highlights Strong earnings growth and momentum Power reported record net and adjusted net earnings1 and EPS for 2021 Great-West reported record net earnings for 2021 and solid earnings in Q4 IGM reported record fourth quarter net earnings and record 2021 earnings Power continues
Slide 8: Earnings Per Share
Earnings Per Share Q4’21 2021 Net EPS of $0.93, compared with $0.92 in Q4’20 Record net EPS of $4.31, compared with $3.08 in 2020 Adjusted net EPS of $1.00, compared with $0.93 in Record adjusted net EPS of $4.77, compared with $3.07 Q4’20 in 2020 ($ per share) Q4'21 Q4'20 2021 2020 Great-We
Slide 9: 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 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: 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 Augment earnings an
Slide 12: 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 13: Strong earnings growth and momentum at Great-West and IGM
Strong earnings growth and momentum at Great-West and IGM 2021 net EPS up 6% from 2020 to $3.37; base EPS1 up Record 2021 net EPS up 27% from 2020 to $4.08; record 22% from 2020 to $3.51 2021 adjusted EPS2, up 27% from 2020 to $4.05 Driven by strong underlying performance across Record high
Slide 14: 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 15: GBL reported strong net asset value growth
GBL reported strong net asset value1 growth 10% NAV growth and 13% NAV per share growth driven by contributions from private and alternative assets and lower net debt NAV NAV per share + 13% per share €127.03 €143.91 In € millions Private assets +10% GBL Listed Webhelp Canyon Voodoo Parques Sienna
Slide 16: Dynamic asset rotation in 2021 at GBL
Dynamic asset rotation in 2021 at GBL €4.2 billion asset rotation in 2021, private and alternative assets now represents 25% of the portfolio 2021 Disposals1 Acquisitions1, 2 Sienna returns Sienna investments €2,088 million €908 million €523 million €672 million €1,640m €357m €256m €268m €146m €11
Slide 17: Building alternative investment platforms to deliver recurring asset management earnings
Building alternative investment platforms to deliver recurring asset management earnings Power expects to generate recurring earnings from its asset management operations Recurring fees generated on committed or invested capital • Base management fees range from 0.75% to 2.25%1 • Fundraising activ
Slide 18: 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 19: Power's alternative asset management strategy is part of the group's broader strategy
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 20: Power monetized a number of assets during 2021
Power monetized a number of assets during 2021 $769 million in cash proceeds in 2021 from the sale of investments and standalone businesses as well as $514 million from the ChinaAMC transaction Date Event Size Overview Power Sustainable launches Power Power transfers Power Sustainable launched its
Slide 21: 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 22: Capital, share buybacks, and leverage
Capital, share buybacks, and leverage Capital transactions On October 15, 2021, PFC issued $200 million of 4.5% Non-Cumulative First Preferred Shares, Series 23 and on November 22, 2021 redeemed all of its outstanding $200 million 6.0% Non-Cumulative First Preferred Shares, Series I • $3 million r
Slide 23: 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 24: 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 25: 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 26: 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
Slide 27: Questions
Questions POWER CORPORATION OF CANADA
Slide 28: Appendix
Appendix POWER CORPORATION OF CANADA
Slide 29: 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 30: GBL reported net asset value
GBL reported net asset value1 % Dec. 31, 2021 PCC Share of Ownership Value (€M) Value (€M) (2) Listed and Private Investments SGS 19.1% 4,223 617 Pernod Ricard 7.6% 4,207 614 adidas 7.1% 3,473 507 Imerys 54.6% 1,696 248 Umicore 15.9% 1,403 205 Mowi 7.0% 757 111 Holcim 2.1% 592 86 GEA 6.3% 455 66 Ont
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