Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q4 2023 Earnings Presentation
30 slides from Power Corporation Of Canada's earnings presentation, Mar 21, 2024
Slide 1: Investor Presentation Q4 2023 Results
Investor Presentation Q4 2023 Results March 21st, 2024
Slide 2: Forward looking statements, disclosures concerning public investees and basis of presentation
Forward looking statements, disclosures concerning public investees and basis of presentation 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 the
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: Conference call participants
Conference call participants R. Jeffrey Orr President and Chief Executive Officer Denis Le Vasseur, FCPA Vice-President and Controller PO W E R CO R PO R AT I O N O F CAN ADA Q UAR T E R L Y R E SUL T S PR E SE N T AT I O N | Q 4 2 0 2 3 4
Slide 5: Q4 2023 Results
POWER CORPORATION OF CANADA Q4 2023 Results
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 2023 Conference Call March 21, 2024 inve
Slide 7: Power highlights
Power highlights Strong, broadly-based results at Great-West – solid performance at IGM Great-West Q4 2023 base earnings1 of $971 million vs. $894 million2 in Q4 2022 and net earnings from continuing operations of $743 million vs. $478 million in Q4 2022 IGM Q4 2023 adjusted net earnings3 of $19
Slide 8: Current market environment
Current market environment Domestic and global macroeconomic environment continues to be uncertain and volatile Our portfolio of businesses are well-positioned to generate earnings throughout the economic cycle Last 10 Years Canadian Mutual Fund Monthly Change in Term Deposits Central Bank Lendi
Slide 9: Power Q4 2023 financial highlights
Power Q4 2023 financial highlights1 Net earnings from continuing operations were $409 million or $0.63 per share, compared with $106 million or $0.16 per share in Q4 2022 Adjusted net earnings from continuing operations2 were $579 million or $0.89 per share, compared with $395 million or $0.59 p
Slide 10: Net and adjusted net earnings
Net and adjusted net earnings ($ in millions, except per share amounts) Q4 2023 Q4 2022 Net and adjusted net earnings (2) Great-West results supported by a solid foundation Great-West 662 595 Earnings Focused of diversified businesses IGM 124 140 Effect of consolidation (3) (27) (41) IGM results
Slide 11: Net asset value
Net asset value NAV per share was $53.53 at December 31, 2023, compared with $48.26 at September 30, 2023 • Publicly traded operating companies represent 87.1% of gross asset value • NAV per share of $52.93 at March 20, 20241 Book value per participating share was $32.49 at December 31, 2023, co
Slide 12: Power has re-positioned its businesses since 2019
Power has re-positioned its businesses since 2019 OpCo Great-West 1 Organic Significantly re-positioned through M&A and organic investments Levers Attractive, diversified growth prospects led by Empower’s retirement and wealth business in the U.S. IGM Financial Well-positioned for future growt
Slide 13: The Power group has announced a number of value-enhancing transactions in the past year
The Power group has announced a number of value-enhancing transactions in the past year Date Transaction Apr’23 IGM acquires interest in Rockefeller Capital Management for US$622 million Apr’23 Canada Life acquires Investment Planning Counsel from IGM1 for $575 million2 Apr’23 Power sells its intere
Slide 14: Great-West delivered broadly-based results in 2023
Great-West delivered broadly-based results in 2023 Great-West results supported by a solid foundation of diversified businesses and disciplined actions taken to reposition its portfolio $30 billion of positive net flows in wealth and retirement businesses Empower crosses $1 billion base earnin
Slide 15: Strategic repositioning of Great-West's U.S. business to accelerate growth in retirement and wealth
Strategic repositioning of Great-West’s U.S. business to accelerate growth in retirement and wealth 2018 Last Five Years Today 2019 2020 2021 2022 2023 Acquisitions Retirement Services Business Full-Service Retirement Business Launched Personal Wealth Divestments 2nd largest U.S. retirement services
Slide 16: Great-West has delivered strong performance against its financial objectives
Great-West has delivered strong performance against its financial objectives Medium-term financial objectives first announced at Great-West’s June 2021 Investor Day 2023 2018-2023 Medium-Term Financial Objectives 1-Year 5-Year2 8-10% base EPS1 growth per annum 11% 11% CAGR 16-17% base ROE1 17% 16% a
Slide 17: IGM executed on its value creation strategy in 2023
IGM executed on its value creation strategy in 2023, led by a series of important transactions Acquired 20.5% interest in Rockefeller Capital Management Closed on additional 13.9% interest in ChinaAMC, bringing total ownership to 27.8% • Purchase partially funded through the sale of Great-West s
Slide 18: IGM announced financial objectives as part of its December 2023 Investor Day
IGM announced financial objectives as part of its December 2023 Investor Day Medium-Term Financial Objective – IGM Financial 5-Year EPS Growth Wealth Asset Management Management 5-Year 7%+ (1) Earnings CAGR 5-Year 9%+ Adjusted EPS CAGR(1)(2) Sum-of-the-parts shareholder value 5-Year creation 15%+ (1
Slide 19: GBL continued to deliver on its strategy in 2023
GBL continued to deliver on its strategy in 2023 Strategic focus on reducing listed assets, growing private assets and buying back shares Over €1.2 billion Record high amount returned in 2023 returned to • €816 million of share buybacks shareholders • €402 million of dividends Streamlining listed
Slide 20: Power continues to build scale in its investment platforms
Power continues to build scale in its investment platforms Sagard and Power Sustainable continue on their path to realizing recurring fee-related earnings as they scale Sagard and Power Sustainable have been Funded AUM focused on investing in and growing their ($ in billions) 25.0 respective platf
Slide 21: Sagard pursuing growth through a number of strategic transactions
Sagard pursuing growth through a number of strategic transactions (formerly ADQ) In September 2023, Sagard closed new strategic partnerships with Lunate (formerly ADQ) and BMO, and expanded its partnership with Great-West Invested capital to support Sagard manager’s future growth Partners also
Slide 22: Returning capital to Power shareholders
Returning capital to Power shareholders $2.0 billion of capital returned to shareholders in 2023 ($ millions) 2020 2021 2022 2023 Dividends 1,081 1,211 1,331 1,374 Share Buybacks 193 153 415 583 Total 1,274 1,364 1,746 1,957 Dividend increased 7.1% to 56.25¢ per participating share With capacity f
Slide 23: Power's shareholder returns
Power’s shareholder returns Power’s shareholder returns have compared favourably to the S&P TSX and S&P TSX Financials indices in recent periods Total Shareholder Return As at February 29, 2024 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Power Corporation 14.1% 14.6% 13.6% S
Slide 24: 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 PCC / PFC reorganization announced 35% WHO declares global pandemic Wealthsimple fundraising & 30% Lion merger Dec’15 to Dec’18 34% a
Slide 25: 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 Public OpCos positioned for growth OpCo • Diversified, broadly-based growth at Great-West led by Empower 1 Org
Slide 26: Questions
POWER CORPORATION OF CANADA Questions
Slide 27: Appendix
POWER CORPORATION OF CANADA Appendix
Slide 28: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Adjusted net earnings Adjusted net earnings from continuing operations MOWI Mowi ASA Affidea Affidea Group B.V. NAV or Net Asset Value Adjusted net asset value AUA Assets under administration NCI Non-controlling interes
Slide 29: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $24.3 billion of funded and unfunded AUM1 vs. $21.1 billion as at December 31, 2022 $2.7 billion of fundraising in 2023, including $0.5 billion in Q4 2023 • $200 million commitment for PSEIP Vintage II, increasing PSEIP total committe
Slide 30: Alternative asset investment platforms
Alternative asset investment platforms Asset Management Investing ($ millions) Q4 2023 Q4 2022 Activities Activities Sagard Asset Management Activities Management fees (1) 43 45 + + = Recurring Investment platform expenses Carried Proprietary Value (47) (50) Fee-Related Interest Capital to Power Fee
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