Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Investor Presentation (May 2021)
31 slides from Power Corporation Of Canada's investor presentation, May 2021
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation May 2021
Slide 2: Forward looking statements and COVID-19
Forward looking statements and COVID-19 Forward Looking Statements In the course of today’s meeting, representatives of the Corporation may make, in their remarks or in response to questions, and the accompanying materials may include, statements containing forward-looking information. Certain state
Slide 3: Disclosures concerning public investees, non-IFRS measures and clarifications on Net Asset Value
Disclosures concerning public investees, non-IFRS measures and clarifications on Net Asset Value Disclosures Concerning Public Investees Information in this presentation and any accompanying oral statements, including in response to questions, (i) concerning Great-West Lifeco and IGM, as applicable,
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG NAV Net asset value AUA Assets under administration NCIB Normal course issuer bid AUM Assets under management Northern Genesis Northern Genesis Acquisition Corp. Canada Life The Canada Life Assurance Co
Slide 5: Reference information
Reference information Websites First Quarter Results and Annual General Meetings Q1 2021 Conference Call May 14, 2021 www.powercorporation.com Annual General Meeting May 14, 2021 TSX: POW Q1 2021 Earnings Release May 13, 2021 Q1 2021 Conference Call May 6, 2021 www.greatwestlifeco.com Annu
Slide 6: Introduction to Power Corporation
Introduction to Power Corporation
Slide 7: Power Corporation of Canada is a publicly-listed holding company controlled by the Desmarais family
Power Corporation of Canada (PCC) is a publicly-listed holding company controlled by the Desmarais family since 1968 International management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth manageme
Slide 8: Great-West Lifeco overview
Great-West Lifeco overview 2020 Net 2020 Base Total Assets Great-West Lifeco is an international Earnings Earnings1 Under Administration1,3 financial services holding company with interests in life insurance, health insurance, $2.943 $2.669 $2.1 retirement and investment services, asset BILLION BILL
Slide 9: IGM Financial overview
IGM Financial overview IGM Financial Inc. is a leading wealth and The company creates value for shareholders through three key areas asset management company supporting financial advisors and the clients they Wealth Asset Strategic serve in Canada, and institutional investors Management Management I
Slide 10: GBL overview
GBL overview 2020 Net 2020 Cash 2020 Total GBL is a leading investor in Europe, Results1 Earnings2 Distribution building leading companies through long- €391 €440 €396 term engaged and responsible ownership. MILLION MILLION MILLION Invests in and supports European industry leaders with strong mark
Slide 11: Net asset value
Net asset value NAV per share of $45.94 at March 31, 2021, up 11% from December 31, 2020 $50.37 per share at May 12, 20211, up an additional $4.43 or 10%, driven by: • $3.91 per share from increase in value of publicly traded OpCos • $0.52 per share from increase in value of investment in Lion E
Slide 12: PCC is pursuing a focused strategy emphasizing financial services
PCC 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 businesses
Slide 13: Simplification of PCC's group structure
Simplification of PCC’s group structure Pre-December 2019 Reorganization March 31, 2021 64% 67% 62% 14% PCC Non- PCC Non-Public Public Investments Investments 67% 62% 28% 50% POWER CORPORATION OF CANADA | MAY 2021 8
Slide 14: Focused business model in financial services
Focused business model in financial services Two main distribution …offering three …in a limited number of channels product offerings developed markets Group Accumulation Decumulation Advisor Insurance POWER CORPORATION OF CANADA | MAY 2021 9
Slide 15: Guiding principles underlying PCC's value creation strategy
Guiding principles underlying PCC’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 POWER CO
Slide 16: PCC group of companies' ongoing value creation strategy is focused on three key levers
PCC 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 Actions we can take
Slide 17: Value creation levers focused on increasing earnings and net asset value
Value creation levers focused on increasing earnings and net asset value PCC TSX: POW Discount to underlying value Alternative Investment Publicly-Traded Platforms1 Great-West IGM GBL Sagard Power Standalone Cash & Asset TSX: GWO TSX: IGM Euronext: GBLB Holdings Sustainable China AMC Businesses Othe
Slide 18: Value creation focus of the publicly traded operating companies
Value creation focus of the publicly traded operating companies Capitalize on significant past investments to drive higher earnings and cash flow growth Pursue M&A transactions to enhance earnings and strategic positioning Continuously manage portfolio to ensure growth / return objectives are
Slide 19: A significant number of value-enhancing transactions were completed since the reorganization
A significant number of value-enhancing transactions were completed since the reorganization Date Event Size Overview Reorganization of Completed the reorganization of PFC and PCC to eliminate dual holding company Feb’20 $8.7 billion PCC and PFC structure Reorganization of Announced reorganizati
Slide 20: Recent activity publicly validates past investments by PCC
Recent activity publicly validates past investments by PCC $12.7 billion AUA and more than 1.0 million+ clients as at March 31, 2021 PCC group’s interest valued at $2.6 billion based on the latest May 2021 fundraising, including $500 million of proceeds to be received as part of a secondary offe
Slide 21: Development of PCC's investment platforms
Development of PCC’s investment platforms Operate in asset classes where we can create competitive advantage Raise and manage primarily third-party capital, with PCC acting as a provider of seed capital Demonstrate the ability to be profitable as an asset manager within a reasonable time perio
Slide 22: Sagard Holdings and Power Sustainable Capital continue to develop their businesses
Sagard Holdings and Power Sustainable Capital continue to develop their businesses Development and launch of alternative investment strategies • Sagard Holdings introduced its middle-market Canadian private equity strategy in Jan’21 • Power Sustainable launched its Energy Infrastructure Partnershi
Slide 23: PCC's alternative asset management strategy part of the group's broader strategy in alternatives
PCC’s alternative asset management strategy part of the group’s broader strategy in alternatives LP in Power Sustainable’s Energy Infrastructure Partnership, Sagard Holdings’ Portage and private credit funds, and investor in Northleaf • Advance strategy to expand alternative investments for its ba
Slide 24: China AMC's growth has accelerated
China AMC’s growth has accelerated 27.8% interest in China AMC: 13.9% held by each of PCC and IGM #1 onshore ETF issuer, #2 Chinese long-term mutual fund manager by market share AUM1 was RMB¥ 1,461 billion as at Dec’20, a 42% increase from RMB¥ 1,032 billion as at Dec’19 PCC’s share of China
Slide 25: Standalone businesses – An additional source of value creation
Standalone businesses – An additional source of value creation PCC will manage standalone businesses, representing $1.4 billion of NAV in aggregate, to realize value over time Based on May 12, 2021 Lion share price, $1.7 billion value of standalone businesses 70% of NAV is publicly traded (i.e.
Slide 26: Power Corporation and its OpCos have elevated their 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 63 meetings with investors and analysts in 2021 year-to-date Enhanced con
Slide 27: PCC discount to NAV
PCC discount to NAV Power Corporation’s discount to NAV has been narrowing with increased corporate activity Great-West sale of 40% U.S. life business announced PCC / PFC reorganization 35% announced WHO declares global pandemic Wealthsimple 30% fundraising & Dec’15 to Dec’18 Lion merger 34% average
Slide 28: Value creation roadmap
Value creation roadmap Capitalize on significant past investments to drive higher organic OpCo earnings growth 1 Organic Enhance communications to provide Levers market greater visibility of earnings potential Higher EPS growth Potential multiple revisions at OpCos OpCo 2 M&A Augment earni
Slide 29: Appendix
Appendix POWER CORPORATION OF CANADA
Slide 30: Portage Ventures Overview
Portage Ventures Overview Portage invests in promising technology companies globally within select core verticals US$803M US$625M 55 2016 20%+ COMMITTED THIRD-PARTY & PORTFOLIO AND FUND LAUNCHED IN TARGET IRR2 CAPITAL1 ASSOCIATED INVESTMENTS CAPITAL SINCE INCEPTION Personal / SMB Wealth Management I
Slide 31: Operating expense reduction
Operating expense reduction We have implemented actions to achieve 66% of the targeted expense reductions, or $33 million on an annual run-rate basis as of March 31, 2021 Retirement of Co-CEOs and changes in governance Certain PFC public company expenses eliminated Restructuring of Group’s res
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