Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Investor Presentation (September 2022)
34 slides from Power Corporation Of Canada's investor presentation, September 2022
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation September 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 listeners/readers in their analys
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Ark Life Ark Life Assurance Company dac MD&A Management’s Discussion & Analysis AUA Assets under administration NAV or Net Asset Value Adjusted net asset value AUM Assets under management NCIB Normal course issuer bid C
Slide 5: Reference information
Reference information Websites Recent Events Q2 2022 Conference Call August 8, 2022 www.powercorporation.com Q2 2022 Earnings Release August 5, 2022 Scotiabank Financials Summit September 8, 2022 Q2 2022 Conference Call August 4, 2022 www.greatwestlifeco.com Q2 2022 Earnings Release August
Slide 6: Table of contents
Table of contents Introduction to Power Corporation Appendix 1: Overview of OpCos and Alternative Asset Investment Platforms Appendix 2: ESG and Community PO W E R CO R PO R AT I O N O F CAN ADA SE PT E MB E R 2 0 2 2 6
Slide 7: Introduction to Power Corporation
Introduction to Power Corporation
Slide 8: Power Corporation of Canada is a publicly-listed holding company controlled by the Desmarais family
Power Corporation of Canada (Power) is a publicly-listed holding company controlled by the Desmarais family since 1968 MARKET DIVIDEND 2021 NET CAPITALIZATION1 YIELD2 EARNINGS3 $22.2B 6.0% $2.9B 66.6%4,5 62.2%4 14.9%6 ALTERNATIVE ASSET INVESTMENT PLATFORMS $29.3B MARKET CAPITALIZATION $8.2B MARKET C
Slide 9: Adjusted net asset value (NAV)
Adjusted net asset value (“NAV” or “Net asset value”)1 NAV per share1 was $41.49 at June 30, 2022 • Publicly traded operating companies represent 80.5% of gross asset value • Investments measured at market value and cash represent 89.3% of the total assets at fair value Book value per participat
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: Simplification of Power's group structure
Simplification of Power’s group structure Pre-December 2019 Reorganization June 30, 2022 64% 67% 62% 15% Power Power Non-Public Non-Public Investments Investments 67% 62% 28% 50% PO W E R CO R PO R AT I O N O F CAN ADA SE PT E MB E R 2 0 2 2 11
Slide 12: Key principles underlying Power's value creation strategy
Key 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 PO W E R C
Slide 13: Power group's value creation strategy 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 Power Company Act
Slide 14: 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 15: 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 16: Value-enhancing transactions completed or announced 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 Valued Power group’s interest at $2.6 billion, including $500 million returned as part of a Wealthsimple $250 million primary, secondary offering
Slide 17: Development of Power's investment platforms
Development of Power’s investment platforms Operate in asset classes where we can create competitive advantage Platforms’ growth strategy is focused on raising 3rd party capital Power invests proprietary capital in the strategies of Sagard and Power Sustainable to support their growth and deve
Slide 18: Power's alternative asset management 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 19: 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 at IGM Financial ChinaAMC’s business continues to accelerate and is well-positioned to p
Slide 20: Standalone businesses are an additional source of value creation
Standalone businesses are an additional source of value creation The standalone businesses, representing $914 million1 of NAV in aggregate will be managed by Power to realize value over time Business Progress in Surfacing and Realizing Value In Q2 2022, delivered a record-high 105 vehicles, an inc
Slide 21: Power has achieved holdco operating expense reduction target of $50 million
Power has achieved holdco operating expense reduction target of $50 million as of year end 2021 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 mo
Slide 22: 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 Increas
Slide 23: 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 Power / PFC reorganization 35% announced WHO declares global pandemic Wealthsimple fundraising & 30% Dec’15 to Dec’18 Lion merger 34%
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 Continue to drive earnings growth at OpCos, building on significant business momentum OpCo • Diversified, broa
Slide 25: Appendix 1: Overview of OpCos and Alternative Asset Investment Platforms
Appendix 1: Overview of OpCos and Alternative Asset Investment Platforms
Slide 26: Great-West Lifeco overview
Great-West Lifeco overview Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses operating in Canada, the United States and Europe 2021 Highlights Q2
Slide 27: IGM Financial overview
IGM Financial overview IGM Financial is a leading diversified wealth and asset management company providing a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals 2021 Highlights Q2 2022 Metrics $979 million $971 mill
Slide 28: GBL overview
GBL overview GBL is a leading investor in Europe, focused on long-term value creation with a diversified high-quality portfolio composed of global companies, public and private, that are leaders in their sector 2021 Highlights Q2 2022 Metrics €279 million €474 million 10.8% €17.8 billion Net earning
Slide 29: Power's alternative asset investment platforms
Power’s alternative asset investment platforms Asset Management Activities Investing Activities + + = Recurring Carried Proprietary Value Fee-Related Interest Capital to Power Earnings Asset Management - Building investment platforms to deliver recurring asset management earnings Through ownership
Slide 30: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $19.2 billion of funded and unfunded AUM1 at June 30, 2022 $1.2 billion of fundraising in 2022 at June 30, 20222 Funded and Unfunded AUM Total Funded AUM and Funded AUM by Platform $19.2B Sagard Power Sustainable ($ millions) Power Th
Slide 31: PCC's fintech strategy is creating shareholder value
PCC’s fintech strategy is creating shareholder value Direct ownership of innovative companies that have a high impact on the group’s existing financial services Make significant business models investments in 1 critical future • Mackenzie’s partnership with Wealthsimple to deliver socially respons
Slide 32: Appendix 2: ESG and Community
Appendix 2: ESG and Community
Slide 33: 2021 ESG highlights
2021 ESG highlights Our deeply rooted tradition of responsible management underpins our approach to ESG and how we are building a resilient business focused on driving sustainable long-term value CDP Climate A List Commitments to global initiatives status achieved alongside only two other Canadian c
Slide 34: Investing in our communities
Investing in our communities We believe in the power of the voluntary sector and social entrepreneurs, working in partnership with governments and businesses, to build a better, more inclusive society with improved opportunities for all. 2021 Highlights Initiatives funded by the Power group in 2021
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