Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q1 2022 Earnings Presentation
33 slides from Power Corporation Of Canada's earnings presentation, May 12, 2022
Slide 1: Investor Presentation Q1 2022 Results
Investor Presentation Q1 2022 Results May 12th, 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 readers in their analysis of the
Slide 4: Conference call participants
Conference call participants R. Jeffrey Orr President and Chief Executive Officer Gregory D. Tretiak, FCPA, FCA Executive Vice-President and Chief Financial Officer PO W E R CO R PO R AT I O N O F CAN ADA Q UAR T E R L Y R E SUL T S PR E SE N T AT I O N | Q 1 2 0 2 2 4
Slide 5: Q1 2022 Results
POWER CORPORATION OF CANADA Q1 2022 Results
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 12, 2022 Q1 20
Slide 7: Power business highlights
Power business highlights Strong earnings growth and momentum at publicly traded operating companies Great-West reported first quarter net earnings up 9% compared to Q1 2021 IGM reported record first quarter net earnings up 8% compared to Q1 2021 Power group continues to execute on its value cre
Slide 8: Current market environment
Current market environment Our businesses are well-positioned to serve clients and stakeholders amidst the current volatile environment Current backdrop reinforces the importance of sound advice and well constructed investment portfolios Canada Consumer Price Index Central Bank Lending Rates Mar
Slide 9: Power financial highlights – Q1 2022
Power financial highlights – Q1 2022 Net EPS were $0.71, compared with $0.82 in Q1 2021 Adjusted net EPS1 were $0.76, compared with $1.16 in Q1 2021 Adjusted net asset value (“NAV” or “Net Asset Value”) per share1 was $49.92 at March 31, 2022, compared with $52.60 at December 31, 2021 • Adjust
Slide 10: Net and Adjusted net earnings
Net and Adjusted net earnings1 Net earnings were $478 million or $0.71 per ($ in millions, except per share amounts) Q1 2022 Q1 2021 Great-West Lifeco share, compared with $556 million or $0.82 539 494 IGM 135 125 per share in Q1 2021 GBL (29) 50 (2) Effect of consolidation 41 (14) 686 655 Adjus
Slide 11: Net asset value
Net asset value NAV per share was $49.92 at March 31, 2022, compared with $52.60 at December 31, 2021 • Publicly traded operating companies represent 82% of gross asset value • NAV per share of $43.67 at May 11, 20221 Book value per participating share was $33.32 at March 31, 2022, compared with
Slide 12: 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 13: 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 Augment earnings an
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: Strong earnings growth and momentum at Great-West and IGM
Strong earnings growth and momentum at Great-West and IGM Q1 2022 net and base EPS1 up 9% from Q1 2021 Record high first quarter net and adjusted EPS2 up Integration of acquired businesses on track 7% from Q1 2021 Record high first quarter total net flows and Great-West provided base EPS m
Slide 16: Canada Life and IG Wealth recognized as leading brands
Canada Life and IG Wealth recognized as leading brands Brand Finance rated Canada Life the fourth most Top performer in 2021 Investment Executive Dealer valuable brand in Canada Report Card • First insurance company ever to be in the top 5 IG Wealth ranked 6th in J.D. Power’s 2022 Canada Full-
Slide 17: Recent acquisitions transforming Empower's business
Recent acquisitions transforming Empower’s business Empower completed the acquisition of Prudential’s full-service retirement business, its 3rd major acquisition since 2020 after Personal Capital and MassMutual’s retirement plan business Strengthens leadership position as clear #2 in U.S. retireme
Slide 18: Fast-growing retail wealth management franchise
Fast-growing retail wealth management franchise Empower is accelerating investments in its retail wealth strategy, marketing to individuals in Empower-administered retirement plans to capture IRA1 rollovers and investment accounts 17+ million retirement plan participants Wealth management AUA (US$ b
Slide 19: GBL's strategy is accelerating in a volatile market environment
GBL’s strategy is accelerating in a volatile market environment Growth of cash earnings1 of 25% to €139 million at the end of Q1 2022 vs. Q1 2021 Received an S&P ESG evaluation of 82 / 100, reflecting its strong integration of ESG factors in its investment policies and processes, compared with o
Slide 20: 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 21: Power's investment in China public equities has generated strong returns over time
Power’s investment in China public equities has generated strong returns over time Power’s investments in Power Sustainable China had a fair value of $780 million at March 31, 2022 The portfolio has generated annualized returns of 15.7% since inception1, representing 5.0% excess returns over its
Slide 22: Power's alternative asset investment platforms
Power’s alternative asset investment platforms Asset Manager Investing Activities + + = Recurring Carried Proprietary Value Management Interest Capital to Power Fees Asset Manager - Building investment platforms to deliver recurring asset management earnings Through ownership in the GPs of Sagard
Slide 23: Earning attractive returns on its proprietary capital across multiple strategies
Earning attractive returns on its proprietary capital across multiple strategies Returns are expected to be realized over differing time horizons • Capital appreciation strategies are expected to generate returns as investments are monetized • Income strategies are expected to generate returns on
Slide 24: Building alternative investment platforms to deliver recurring asset management earnings
Building alternative investment platforms to deliver recurring asset management earnings Power expects to generate recurring earnings from its asset management operations Recurring fees generated on committed capital, invested capital or NAV • Base management fees range from 0.75% to 2.25%1,2 • Fu
Slide 25: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $19.0 billion of funded and unfunded AUM1, compared with $19.1 billion as of December 31, 2021 • Fair value of Power’s interest in Wealthsimple decreased by $147 million2, or $0.22 per share. Power’s share in IGM’s interest decreased by
Slide 26: Standalone businesses are an additional source of value creation
Standalone businesses are an additional source of value creation The standalone businesses, representing $1.2 billion1 of NAV in aggregate will be managed by Power to realize value over time May 11, 2022 Fair Value Business (Publicly Traded Co’s) Progress in Surfacing and Realizing Value Completed
Slide 27: Share buybacks and leverage
Share buybacks and leverage Share buybacks Power currently sees an opportunity for shareholder value creation in the purchase of participating shares under its NCIB program Power resumed normal course share buybacks under its NCIB program Power • In 2022, Power has completed $280 million of shar
Slide 28: Power discount to NAV
Power discount to NAV1 Power’s discount to NAV has been narrowing with increased corporate activity 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% average discou
Slide 29: 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 OpCo Continue to drive earnings growth at OpCos, building on significant business momentum 1 Organic • Broad-b
Slide 30: Questions
POWER CORPORATION OF CANADA Questions
Slide 31: Appendix
POWER CORPORATION OF CANADA Appendix
Slide 32: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG MD&A Management’s Discussion & Analysis Affidea Affidea Group B.V. Mowi Mowi ASA AUA Assets under administration NAV or Net Asset Value Adjusted net asset value AUM Assets under management NCI Non-contr
Slide 33: GBL reported net asset value
GBL reported net asset value1 GBL net asset value per share of €136.10 at March 31, 2022, compared to €143.91 at December 31, 2021 % Mar. 31, 2022 Power Share of Ownership Value (€M) Value (€M) (2) Listed and Private Investments Pernod Ricard 7.6% 3,965 579 SGS 19.1% 3,593 525 adidas 7.1% 2,906 424
Power Corporation of Canada — Q1 2022 Earnings Presentation on 6ix