Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q4 2024 Earnings Presentation
32 slides from Power Corporation Of Canada's earnings presentation, Mar 20, 2025
Slide 1: Q4 and Year-End 2024 Results Investor Presentation
1 Q4 AND YEAR-END 2024 RESULTS Investor Presentation March 20, 2025 1 POWER CORPORATION OF CANADA 1
Slide 2: Forward looking statements, disclosures concerning public investees and presentation of the holding company
Forward looking statements, disclosures concerning public investees 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, representatives of the Corporation ma
Slide 3: Basis of presentation, non-IFRS financial measures, other measures and clarifications on adjusted net asset value
Basis of presentation, non-IFRS financial measures, other measures and clarifications on adjusted net asset value Basis of Presentation The 2024 consolidated financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by
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 Q4 AND YEAR-END 2024 RESULTS PRESENTATION 4
Slide 5: 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 2024 Conference Call March 20, 2025 investor
Slide 6: Power delivered strong Q4 2024 earnings growth and announced a 9% dividend increase
Power delivered strong Q4 2024 earnings growth and announced a 9% dividend increase Power’s adjusted net earnings [1,2] grew 20% to $829 million vs. $688 million in Q4 2023. Net earnings [2] were $933 million vs. $409 million in Q4 2023 • Power’s primary earnings drivers – Great-West and IGM – showi
Slide 7: Power fourth quarter and 2024 financial highlights
Power fourth quarter and 2024 financial highlights • Net earnings from continuing operations in Q4 2024 were $933 million or $1.44 per share vs. $409 million or $0.63 per share in Q4 2023 Adjusted net earnings from continuing operations [1] in Q4 2024 were $829 million or $1.28 per share vs. $688 mi
Slide 8: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations • Power’s recurring earnings driven primarily by ($ in millions, except per share amounts) Q4 2024 Q4 2023 2024 2023 Great-West and IGM. Both operating companies Net and adjusted net earnings [2] delivered strong results in Q4 2024 Great-West
Slide 9: Net asset value per share driven by broadly-based growth
Net asset value per share driven by broadly-based growth • NAV per share was $60.44 at December 31, 2024, an increase of 4% vs. $57.92 at September 30, 2024 • Book value per participating share was $35.56 at December 31, 2024 vs. with $34.00 at September 30, 2024 Dec. 31, % of Gross Sep. 30, % of Gr
Slide 10: Great-West delivered double-digit year-over-year base earnings growth in Q4 2024
Great-West delivered double-digit year-over-year base earnings growth in Q4 2024 • Great-West net earnings increased 50% year-over- Base Earnings [2] and Net Earnings from Continuing Operations year in Q4 2024 ($ millions) • Great-West reported base earnings growth of 15% year-over-year in Q4 2024,
Slide 11: Great-West has significantly re-positioned its portfolio over the past 5 years
Great-West has significantly re-positioned its portfolio over the past 5 years Base Earnings and % by Segment [1,2,3] Net Earnings and % by Segment [1,2,4] ($ millions) ($ millions) 4,192 4,011 19% 15% 2,719 20% 20% CRS 14% 2,359 CRS 16% Europe 29% 31% 28% U.S. 13% Europe 42% Canada 44% 30% 37% Cana
Slide 12: Great-West has consistently delivered superior financial results
Great-West has consistently delivered superior financial results • Great-West has met or exceeded all medium-term objectives Medium-Term Delivered Objectives 2020-2024 Base Earnings per $2.88 $3.51 $3.56 $3.94 $4.50 8-10% 12% Share [1] CAGR 1 2 3 4 5 16-17% 17% [3] Base Return 15% 16% 17% 18% Object
Slide 13: IGM's earnings growth driven by its core businesses
IGM’s earnings growth driven by its core businesses, with both IG Wealth and Mackenzie reporting record quarter-end AUM&A Net and Adjusted Net Earnings [2] ($ millions) • Record high quarter-end AUM&A [1] of $140.4 billion, an increase of 16% year-over-year and 3% during the quarter 1,148.9 • Record
Slide 14: IGM's strategic investments delivered strong client asset growth
IGM’s strategic investments delivered strong client asset growth with significant inflows during the year AUA Client Assets [3] ($ billions) (US$ billions) Wealth Management • AUA [1] grew to $64.0 billion, 64.0 • Client asset growth of 24% 151.2 up 23% sequentially and during 2024 [2] 122.1 106% ye
Slide 15: IGM announced medium-term objectives in December 2023
IGM announced medium-term objectives in December 2023 IGM Financial 5-Year EPS Growth Targets Wealth Asset Management Management 5-Year Core 7%+ [1] Earnings CAGR 5-Year Businesses 9%+ Adjusted EPS CAGR [1,2] Sum-of-the-parts shareholder value creation Strategic 5-Year Investments 15%+ [1,2] Earning
Slide 16: GBL executing on its value creation strategy
GBL executing on its value creation strategy Meaningful actions taken in 2024 to rotate portfolio and return GBL announced double-digit TSR [1] objective over the medium- capital to shareholders term in its November 2024 Strategy Update Rotating portfolio out of listed assets in favour of private as
Slide 17: Asset Management Activities – Sagard and Power Sustainable continue to scale their platforms
Asset Management Activities – Sagard and Power Sustainable continue to scale their platforms Funded AUM [1] • Sagard and Power Sustainable continue to scale through ($ in billions) different levers, generating recurring fee-related earnings 33.3 o Ongoing fundraising from third-party investors (exis
Slide 18: Investing Activities – Earning attractive returns on its proprietary capital
Investing Activities – Earning attractive returns on its proprietary capital across multiple strategies Power’s proprietary capital invested in Sagard and Power Sustainable strategies, currently valued at $2.7 billion, targeted to generate 10%+ net returns Power Fair Value Strategies of Investments
Slide 19: Sagard has entered into a strategic partnership with GBL
Sagard has entered into a strategic partnership with GBL • In March 2025, GBL and Sagard announced a transaction whereby GBL Capital will acquire a 5% minority interest in Sagard Holdings Management Inc. • As part of the transaction, GBL committed to invest a minimum of €250 million in Sagard-manage
Slide 20: Sale of Peak closed in Q4, offset by fair value decreases at LMPG and Lion
Sale of Peak closed in Q4, offset by fair value decreases at Standalone LMPG and Lion Businesses • In December 2024, Sagard completed the previously announced sale of its 42.6% equity interest in Peak • Power received proceeds of $468 million, representing a net gain of $279 million and a 3x multipl
Slide 21: Returning capital to Power shareholders
Returning capital to Power shareholders Power returned close to $2 billion of capital to shareholders in 2024 • $1,437 million of dividends paid to participating shareholders • $430 million of subordinate voting shares repurchased under the NCIB program o 10.6 million shares, or 1.6% of participatin
Slide 22: Significant monetization of assets at the Power level over the last five years
Significant monetization of assets at the Power level over the last five years to fund share buybacks and support investments $3.6 billion of asset monetizations over the last 5 years [1] $1.8 billion of share buybacks since 2020 with 49.4 million shares repurchased, representing 7.2% of subordinate
Slide 23: 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 organic growth: OpCo o Diversified, broadly-based growth at Great-West led by Empo
Slide 24: Power discount to NAV remains an attractive opportunity for upside
Power discount to NAV [1] remains an attractive opportunity for upside 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 merger Dec’15 to Dec’18 Russia-Ukraine 34% average
Slide 25: Power's shareholder returns
Power’s shareholder returns Power’s shareholder returns have outperformed the S&P TSX and S&P TSX Financials indices in recent periods Total Shareholder Return As at March 19, 2025 Since Period Last 12 Months Last 3 Years Last 5 Years Dec. 31, 2019 Annualized Annualized Annualized Power Corporation
Slide 26: Looking ahead
Looking ahead Power is well-positioned to continue generating attractive returns to its shareholders • Great-West and IGM, 83% of Power’s gross asset value [1], are the largest sources of potential returns o Great-West targeting 8-10% base EPS growth per annum plus its 4.7% dividend yield [2] o IGM
Slide 27: Questions
Questions POWER CORPORATION OF CANADA QUARTERLY Q4 AND YEAR-END RESULTS 2024 PRESENTATION RESULTS PRESENTATION | Q3 2024 27
Slide 28: Appendix
Appendix POWER CORPORATION OF CANADA QUARTERLY Q4 AND YEAR-END RESULTS 2024 PRESENTATION RESULTS PRESENTATION | Q3 2024 28
Slide 29: Value creation from Power's alternative asset investment platforms
Value creation from Power’s alternative asset investment platforms Asset Management Activities Investing Activities Recurring Carried Proprietary Value Fee-Related + Interest + Capital = to Power Earnings Asset Management Activities – Building investment platforms to deliver recurring asset manageme
Slide 30: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms • $42.4 billion of AUM [1][2] as at December 31, 2024 AUM Funded AUM Power Third parties Sagard Power Sustainable ($ millions) $42.4B $9.1B $10,582 Unfunded AUM $33.3B $8,643 $7,340 $30.6B $33.3B 92% Third $3,958 Funded Party AUM $2,500 $
Slide 31: Alternative asset investment platforms
Alternative asset investment platforms ($ millions) Q4 2024 Q4 2023 Asset Management Activities Management fees [1] 67 43 Investment platform expenses (62) (47) Fee-related earnings (loss) [2] 5 (4) Net carried interest [3] 6 (1) Sagard Other (12) 9 (1) 4 Investing Activities Private equity and othe
Slide 32: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG MD&A Management’s Discussion & Analysis Adjusted net earnings Adjusted net earnings from continuing operations NAV or Net Asset Value Adjusted net asset value AUA Assets under administration NCIB Normal
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