Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q1 2024 Earnings Presentation
28 slides from Power Corporation Of Canada's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Results Investor Presentation
1 Q1 2024 RESULTS Investor Presentation May 9, 2024 1 POWER CORPORATION OF CANADA
Slide 2: Forward looking statements, disclosures concerning public investees, basis of presentation
Forward looking statements, disclosures concerning public investees, basis of presentation and presentation of the holding company For definitions of capitalized terms used herein, see "Abbreviations" in the Appendix hereto. Forward Looking Statements In the course of today’s meeting, representative
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 Jake Lawrence President and Executive Vice-President and Chief Executive Officer Chief Financial Officer POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2024 4
Slide 5: Q124 Results
Q124 Results POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2024 5
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 Annual General Meeting May 9, 2024 Q1 2024 Conf
Slide 7: Power highlights
Power highlights Power delivered strong results in Q1 2024 • Net earnings from continuing operations were $1.17 per share, compared with $0.49 per share in Q1 2023 • Adjusted net earnings from continuing operations [1] were $1.12 per share, compared with $0.88 per share in Q1 2023 Great-West and IGM
Slide 8: Power Q1 2024 financial highlights
Power Q1 2024 financial highlights • Net earnings from continuing operations were $758 million or $1.17 per share, compared with $326 million or $0.49 per share in Q1 2023 • Adjusted net earnings from continuing operations [1] were $727 million or $1.12 per share, compared with $588 million or $0.88
Slide 9: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations • Great-West delivered record quarterly base earnings, ($ in millions, except per share amounts) Q1 2024 Q1 2023 exceeding $1 billion for the first time. Strong contributions to Net and adjusted net earnings [2] earnings growth from all four s
Slide 10: Net asset value
Net asset value • NAV per share was $53.10 at March 31, 2024, compared with $53.53 at December 31, 2023 o NAV per share of $53.43 at May 8, 2024[1] • Book value per participating share was $33.04 at March 31, 2024, compared with $32.49 at December 31, 2023 Mar. 31, % of Gross Dec. 31, % of Gross ($
Slide 11: 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 IGM[1] for $575 million[2] Apr’23 Power sells its in
Slide 12: Power has re-positioned its businesses for higher growth
Power has re-positioned its businesses for higher growth Great-West OpCo • Re-positioned through M&A and organic investments 1 Organic • Attractive, diversified growth prospects led by Empower’s retirement and wealth business in Levers the U.S. IGM Financial • Leading core franchises and high-growth
Slide 13: Strategic repositioning of Great-West's U.S. business
Strategic repositioning of Great-West’s U.S. business to accelerate growth in retirement and wealth 2018 Last Five Years Today 2019 2020 2021 2022 2023 Acquisitions Retirement Services Business Full-Service Retirement Business Divestments 2nd largest U.S. retirement services provider [1] U.S. Indivi
Slide 14: IGM medium-term objectives from December 2023 Investor Day
IGM announced medium-term objectives as part of its December 2023 Investor Day IGM Financial 5-Year EPS Growth Wealth Asset management management 5-Year 7%+ [1] Earnings CAGR 5-Year 9%+ Adjusted EPS CAGR [1][2] Sum-of-the-parts shareholder value creation 5-Year 15%+ [1][2] Earnings CAGR [1] “Adjuste
Slide 15: Rockefeller growing organically and inorganically
Rockefeller growing organically and inorganically Q1 2024 Highlights Client Asset Growth [1] Team and Private Advisor Growth (US$ in billions) • US$1.3 billion organic client asset growth Advisor Teams o US$3.3 billion since Q1 2023 Advisors 350 321 • US$4.6 billion inorganic client asset 10.5 133.4
Slide 16: Wealthsimple continues to deliver on its growth plans
Wealthsimple continues to deliver on its growth plans Power group’s investment in Wealthsimple increased to $1.3 billion[1], up from $1.1 billion at Q4 AUA by Quarter ($ billions) Client Count by Quarter[4] (000s) $7.7 billion AUA [2] growth in Q1 2024, largest quarter-over-quarter 12% growth in Wea
Slide 17: ChinaAMC an industry leader in a growing market
ChinaAMC an industry leader in a growing market Chinese Investment Fund Industry ChinaAMC Ending AUM [1] Top 10 Long-Term Fund Provider Market Share [2] (RMB in billions) (% at March 31, 2024) 2,089 6.6 Long-term fund market share increased to 5.6% 1,826 1,824 from 4.6% year-over-year, while maintai
Slide 18: Power continues to build scale in its investment platforms
Power continues to build scale in its investment platforms Funded AUM [1] Sagard and Power Sustainable continue to scale in order to ($ in billions) drive recurring fee-related earnings • 27.2 Sagard and Power Sustainable have been focused on investing in and growing their respective platforms since
Slide 19: Alternative asset investment platforms
Alternative asset investment platforms Asset Management Activities Investing Activities ($ millions) Q1 2024 Q1 2023 Asset Management Activities Management fees [1] 51 45 Recurring Carried Proprietary Value Investment platform expenses (55) (47) Fee-Related Earnings + Interest + Capital = to Power F
Slide 20: Power Sustainable strategic partnership with Great-West
Power Sustainable strategic partnership with Great-West • In May 2024, Power Sustainable announced a new long-term strategic partnership with Great-West o Enables Power Sustainable to accelerate its growth and market penetration in sustainable private equity and infrastructure credit o Supports Grea
Slide 21: Returning capital to Power shareholders
Returning capital to Power shareholders Power continued to return capital to shareholders during the first quarter • $343 million of dividends paid to participating shareholders • $97 million of shares repurchased under the NCIB program o 2.5 million shares, or 0.4% of participating shares o Additio
Slide 22: 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 March 31, 2024 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Power Corporation 16.7% 10.7% 10.6% S&P
Slide 23: Power discount to NAV
Power discount to NAV [1] Power’s discount to NAV has been narrowing through execution of its value creation strategy 40% Great-West sale of U.S. life business announced PCC / PFC reorganization announced Putnam sale 35% announced WHO declares global pandemic Wealthsimple fundraising 30% & Lion merg
Slide 24: 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 o Diversified, broadly-based growth at Great-West led by Empower 1 Or
Slide 25: Questions
Questions POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2024 25
Slide 26: Appendix
Appendix POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2024 26
Slide 27: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Adjusted net earnings Adjusted net earnings from continuing operations NAV or Net Asset Value Adjusted net asset value AUA Assets under administration NCI Non-controlling interest AUM Assets under management NCIB Normal
Slide 28: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms • $36.4 billion of AUM [1][2] vs. $24.3 billion as at December 31, 2023 o Includes $12.0 billion from PEM, acquired during Q1 2024 AUM Funded AUM Power Third parties Sagard Power Sustainable ($ millions) $36.4B $9.2B $8,692 Unfunded AUM $
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