Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q3 2024 Earnings Presentation
31 slides from Power Corporation Of Canada's earnings presentation, Nov 13, 2024
Slide 1: Q3 2024 Results Investor Presentation
1 Q3 2024 RESULTS Investor Presentation November 13, 2024 1 POWER CORPORATION OF CANADA 1
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. Fo rwa rd Lo o king Sta te m e nts In the course of today’s meeting, repres
Slide 3: Non-IFRS financial measures, other measures and adjusted net asset value
Non-IFRS financial measures, other measures and clarifications on adjusted net asset value No n-IFRS Fina ncia l Me a sure s Management uses these financial measures in its presentation and analysis of the financial performance of Power Corporation and believes that they provide additional meaningfu
Slide 4: Conference call participants
Conference call participants R. Jeffrey Orr Jake Lawrence Pre sid e nt a nd Exe cutive Vice -Pre sid e nt a nd Chie f Exe cutive O ffice r Chie f Fina ncial O ffice r POWER CORPORATION OF CANADA Q UARTERLY RESULTS P RESEN TATIO N | Q3 2024 4
Slide 5: Q324 Results
Q324 Results POWER CORPORATION OF CANADA Q UARTERLY RESULTS P RESEN TATIO N | Q3 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 Q3 2024 Conference Call November 13, 2024 Q3 20
Slide 7: Power results reflect growth across the group
Power results reflect growth across the group Po we r’s p rim a ry e a rning s d rive rs – Gre at-We st a nd IGM – d e live re d stro ng und e rlying p e rfo rm a nce a nd d o ub le -d ig it e a rning s g ro wth • Great-West base earnings [1] grew 12% to $1,061 million vs. $950 million in Q3 2023. N
Slide 8: Power Q3 2024 financial highlights
Power Q3 2024 financial highlights • Net earnings from continuing operations were $371 million or $0.58 per share, compared with $997 million or $1.50 per share in Q3 2023 • Adjusted net earnings from continuing operations [1] were $542 million or $0.84 per share, compared with $1,006 million or $1.
Slide 9: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations • Power’s operating companies delivered strong results ($ in millions, except per share amounts) Q 3 2024 Q 3 2023 Ne t and ad juste d ne t e arning s [2 ] o Great-West up 12% year-over-year; net earnings lower driven Great-West 724 649 by acc
Slide 10: Net asset value per share up 15% driven by growth across the Power group
Net asset value per share up 15% driven by growth across the Power group • NAV per share was $57.92 at September 30, 2024, an increase of 15% compared with $50.48 at June 30, 2024 o NAV per share of $61.33 at November 12, 2024 [1] • Book value per participating share was $34.00 at September 30, 2024
Slide 11: Great-West delivered double-digit base earnings growth
Great-West delivered double-digit base earnings growth Ba se Ea rning s [2 ] a nd Ne t Ea rning s fro m Co ntinuing O p e ra tio ns • Great-West reported base earnings growth of ($ millions) 12% year-over-year, the 6th consecutive quarter of base earnings growth o Net earnings lower driven by accoun
Slide 12: Empower: Solid double-digit growth outlook
Empower: Solid double-digit growth outlook We ll-p o sitio ne d to co ntinue o utp a cing Rising m a rke ts a ne t p o sitive to a sse t Ad d e d to rq ue fro m re ve nue the ind ustry g ro wth, b ut m a y we ig h o n flo ws d ive rsificatio n a nd o p e rating le ve ra g e • Organic AUA [1] 5-year
Slide 13: Empower acquires OptionTrax to deliver integrated equity compensation solutions
Empower acquires OptionTrax to deliver integrated equity compensation solutions • In September 2024, Empower announced the acquisition of Plan Management Corporation, the creator of OptionTrax, a leading digital equity plan administration platform and service provider o Specializes in equity compens
Slide 14: IGM's core businesses benefitted from return to industry net flows
IGM’s core businesses in wealth and asset management benefitted from return to industry net flows and higher markets Third Q ua rte r Ind ustry Lo ng -Te rm Mutua l Fund Ne t Sa le s ($ billions) • Record ending AUM&A [1] of $136.4 billion, an increase of 19% year-over-year and 5% during the quarter
Slide 15: IGM's strategic investments continue to deliver high growth
IGM’s strategic investments continue to deliver high growth Wealth Management Asset Management • Fair value of Power group’s interest in Wealthsimple increased • AUM of RMB¥2.4 trillion [3] as at September 30, 2024 by $0.7 billion to $2.2 billion, versus $1.5 billion in Q2 2024 • Investment fund AUM
Slide 16: GBL strategic update with double-digit NAV per share and TSR growth objectives
Last week, GBL held a strategic update for investors, setting out double-digit NAV per share and TSR [1] growth objectives O b je ctive s fo r 2 0 2 7 E sup p o rte d b y d ivid e nd g ro wth fro m a ne w b a se o f € 5 .0 0 p e r sha re [2 ] Sources Uses Ge ne rating ca sh… … fo r ne w inve stm e n
Slide 17: Wealthsimple delivering on its growth plans
Wealthsimple delivering on its growth plans Fa ir va lue o f Po we r g ro up ’s inte re st incre a se d $ 0 .7 b illio n to $ 2 .2 b illio n [1 ], up fro m $ 1 .5 b illio n at Q 2 2 0 2 4 AUA b y Ye a r ($ b illio ns) Clie nt Co unt b y Ye a r (0 0 0 s) [3 ] Record AUA [2] growth of $8.5 billion or
Slide 18: Sagard's asset management business pulling on multiple levers
Sagard’s asset management business pulling on multiple levers to generate meaningful growth Fa ir va lue o f Sa g a rd ’s a sse t m a na g e m e nt b usine ss incre a se d 3 9 % to $ 0 .8 b illio n, o f which Po we r’s sha re is $ 0 .4 b illio n • Sagard has pulled on multiple levers Asse ts Und e r
Slide 19: Value increase of Peak offset by fair value decreases at LMPG and Lion
Value increase of Peak from its announced transaction, Standalone offset by fair value decreases at LMPG and Lion Businesses • In July 2024, Power received approximately $83 million from Peak related to its previously announced sale of Rawlings • In September 2024, Peak announced that Power agreed t
Slide 20: Asset Management Activities – Building investment platforms for recurring earnings
Asset Management Activities – Building investment platforms Asse t Manag e m e nt Activitie s Recurring Carried to deliver recurring asset management earnings Fee-Related Earnings + Interest Sa g a rd a nd Po we r Susta ina b le co ntinue to sca le thro ug h d iffe re nt Ca rrie d inte re st re p re
Slide 21: Investing Activities – Returns on proprietary capital across strategies
Investing Activities – Earning attractive returns on its proprietary Inve sting Proprietary capital across multiple strategies Capital Po we r’s p ro p rie ta ry ca p ita l inve ste d in Sa g a rd a nd Po we r Susta ina b le strate g ie s, curre ntly va lue d at $ 2 .5 b illio n, ta rg e te d to g e
Slide 22: Returning capital to Power shareholders
Returning capital to Power shareholders Po we r ha s re turne d $ 1 .4 b illio n o f ca p ita l to sha re ho ld e rs ye a r-to -d ate • $1,073 million of dividends paid to participating shareholders at September 30, 2024 • $309 million of shares repurchased under the NCIB program year-to-date at Sep
Slide 23: Power's shareholder returns
Power’s shareholder returns Po we r ha s d e live re d stro ng sha re ho ld e r re turns in re ce nt p e rio d s To ta l Sha re ho ld e r Re turn As at November 12, 2024 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Po we r Co rp o ratio n 4 5 .0 % 9 .5 % 1 4 .6 % S&P TSX Fina
Slide 24: Power discount to NAV
Power discount to NAV [1] Po we r’s d isco unt to NAV ha s b e e n na rro wing thro ug h e xe cutio n o f its va lue cre atio n strate g y while NAV p e r sha re g re w to $ 6 1 .3 3 p e r sha re [2 ] 40% Gre a t-We st sa le o f U.S. life b usine ss a nno unce d PCC / PFC re o rg a niza tio n a nno
Slide 25: Opportunities for further value creation
Opportunities for further value creation Po we r will co ntinue to e xe rcise its thre e le ve rs fo r va lue cre a tio n, with co ncre te a ctio ns a nd o p p o rtunitie s a va ila b le in the sho rt to m e d ium -te rm • Public OpCos positioned for organic growth: O p Co o Diversified, broadly-bas
Slide 26: Questions
Questions POWER CORPORATION OF CANADA Q UARTERLY RESULTS P RESEN TATIO N | Q3 2024 26
Slide 27: Appendix
Appendix POWER CORPORATION OF CANADA Q UARTERLY RESULTS P RESEN TATIO N | Q3 2024 27
Slide 28: Value creation from Power's alternative asset investment platforms
Value creation from Power’s alternative asset investment platforms Asse t Ma na g e m e nt Activitie s Inve sting Activitie s Recurring Carried Proprietary Value Fee-Related + Interest + Capital = to Power Earnings Asse t Ma na g e m e nt Activitie s – Build ing inve stm e nt p latfo rm s to d e liv
Slide 29: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms • $39.0 billion of AUM [1][2] as at September 30, 2024 • $1.9 billion of fundraising in 2024 to date across multiple strategies AUM Fund e d AUM Power Third parties Sa g a rd Po we r Susta ina b le ($ millions) $39.0B $8.9B $9,596 Unfunde
Slide 30: Alternative asset investment platforms
Alternative asset investment platforms ($ millions) Q3 2024 Q3 2023 Asse t Man ag e me n t Activitie s Management fees [1] 58 42 Investment platform expenses (58) (44) Fee-related earnings (loss) [2] - (2) Net carried interest [3] 22 (1) Sa g a rd Other (16) (3) 6 (6) Inve sting Activitie s Private
Slide 31: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Ad juste d ne t e a rning s Adjusted net earnings from continuing operations Ma cke nzie Mackenzie Financial Corporation AUM Assets under management MD&A Management’s Discussion & Analysis CAGR Compound annual growth ra
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