Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q1 2025 Earnings Presentation
32 slides from Power Corporation Of Canada's earnings presentation, May 14, 2025
Slide 1: Q1 2025 Results Investor Presentation
1 Q1 2025 RESULTS Investor Presentation May 14, 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 condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS),
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 QUARTERLY RESULTS PRESENTATION | Q1 2025 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 Annual General Meeting May 14, 2025 Q1 2025 Con
Slide 6: Power celebrates its 100th anniversary
Power celebrates its 100th anniversary POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2025 6
Slide 7: Key Messages
Key Messages Power delivered solid Q1 2025 results and is well-positioned to continue generating attractive returns to its shareholders Great-West and IGM continue to deliver strong growth Great-West raised its medium-term Base ROE [1] objective and introduced base capital generation target at its 2
Slide 8: Power Q1 2025 financial highlights
Power Q1 2025 financial highlights • Net earnings from continuing operations were $689 million or $1.07 per share vs. $758 million or $1.17 per share in Q1 2024 • Adjusted net earnings from continuing operations [1] were $787 million or $1.22 per share vs. $710 million or $1.09 per share in Q1 2024
Slide 9: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations • Power’s recurring earnings driven primarily by Great-West and IGM. Net and Adjusted Net Earnings [2] Both operating companies delivered solid results in Q1 2025 ($ in millions, except per share amounts) Q1 2025 Q1 2024 o Net earnings decreas
Slide 10: Net asset value per share up 14% quarter-over-quarter
Net asset value per share up 14% quarter-over-quarter • NAV per share was $68.99 at March 31, 2025, an increase of 14% vs. $60.44 at December 31, 2024 o NAV per share was $63.60 at May 13, 2025 [1] • Book value per share was $36.10 at March 31, 2025 vs. with $35.56 at December 31, 2024 Mar. 31, % of
Slide 11: Great-West delivered solid Q1 2025 results despite elevated market volatility
Great-West delivered solid Q1 2025 results despite elevated market volatility Q1 2025 Highlights Base and Net EPS from Continuing Base ROE and Net ROE from Operations Continuing Operations • Great-West reported net earnings per share from continuing operations of $0.92 vs. $1.10 in Q1 2024 reflectin
Slide 12: Great-West updated its medium-term objectives at its 2025 Investor Day
Great-West updated its medium-term objectives at its 2025 Investor Day Medium-Term Objectives Prior Revised objectives objectives Potential to outperform base EPS growth through Base EPS Growth [1] 8-10% 8-10% Re-Affirmed accretive deployment of excess capital Base ROE [1] 16-17% 19%+ Increased Base
Slide 13: Leadership changes
Leadership changes Paul Mahon David Harney POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2025 13
Slide 14: IGM's results driven by record client assets at its core businesses and strong net flows
IGM’s results driven by record client assets at its core businesses and strong net flows Q1 2025 Highlights Net and Adjusted Net Earnings ($ millions) • Record high first quarter adjusted net earnings [1] of $238 million • Record high quarter-end AUM&A of $141.5 billion at IG Wealth and $218.6 billi
Slide 15: IGM's strategic investments continue to deliver impressive growth
IGM’s strategic investments continue to deliver impressive growth Wealth Management Asset Management 73.0 529.1 +35% +89% 391.4 38.7 AUA [1] AUM [1,2] ($ billions) ($ billions) Q1 2024 Q1 2025 Q1 2024 Q1 2025 +23% 222.1 +20% 32.7 27.3 180.7 Client assets [1,2] AUM [1] ($ billions) ($ billions) Q1 20
Slide 16: GBL executing on its value creation strategy
GBL executing on its value creation strategy Q1 2025 Highlights Significant rotation into private assets over the past 5+ years (% of portfolio) • In Q1 2025, GBL continued to execute on its value creation strategy in order to deliver on its medium-term 4.7% Q4 2019 Q1 2025 double-digit TSR objectiv
Slide 17: Leadership changes
Leadership changes Ian Gallienne Paul Desmarais, Jr. Johannes Huth Chairman of the Board of Directors Vice-Chairman of the Managing Director Board of Directors POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q1 2025 17
Slide 18: Value creation from Power's alternative asset investment platforms
Value creation from Power’s alternative asset investment platforms Power drives value from Sagard and Power Sustainable by building third-party asset managers and benefiting from the returns on proprietary capital invested in each platform Asset Management Activities – Building investment platforms
Slide 19: Sagard continues to drive growth through partnerships
Sagard continues to drive growth through partnerships In April 2025, Sagard announced a strategic partnership whereby it will acquire a strategic stake in BEX • Partnership marks a significant step in Sagard’s expansion into private equity secondaries • BEX’s capabilities complement Sagard’s existin
Slide 20: Power Sustainable announced the launch of its decarbonization private equity strategy
Power Sustainable announced the launch of its decarbonization private equity strategy • In May 2025, Power Sustainable announced the launch of its fourth investment strategy: Power Sustainable Strategies Power Sustainable Decarbonization Private Equity • The strategy has secured up to $450 million [
Slide 21: Returning capital to Power shareholders
Returning capital to Power shareholders Power returned ~$500 million of capital to shareholders in Q1 2025 • $363 million of dividends paid to participating shareholders at March 31, 2025 • $135 million of subordinate voting shares repurchased under the NCIB program at March 31, 2025 o 3.0 million s
Slide 22: 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 30% fundraising Dec’15 to Dec’18 Russia-Ukraine 34% average discount to NA
Slide 23: 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 May 13, 2025 Since Period Last 12 Months Last 3 Years Last 5 Years Dec. 31, 2019 Annualized Annualized Annualized Power Corporation 33
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 • Public OpCos positioned for organic growth: OpCo o Diversified, broadly-based growth at Great-West led by Reti
Slide 25: Looking ahead
Looking ahead Power is well-positioned to continue generating attractive returns to its shareholders • Great-West and IGM, 84% 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 4.8% dividend yield [2] • Grea
Slide 26: Questions
Questions POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION || Q1 Q32025 2024 26
Slide 27: Appendix
Appendix POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION || Q1 Q32025 2024 27
Slide 28: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms • $43.4 billion of AUM [1][2] as at March 31, 2025 AUM Funded AUM Power Third parties ($ billions) Sagard Power Sustainable $43.4 $9.3 Unfunded AUM $34.1 $31.2 $34.1 92% Third Funded Party AUM $2.9 (8% Power) [3] [4] Note: Converted to C$
Slide 29: 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 34.1 o Ongoing fundraising from third-party investors (exis
Slide 30: Investing Activities – Earning attractive returns on its proprietary capital across multiple strategies
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 $2.9 billion, targeted to generate 10%+ net returns Power Fair Value Strategies of Investments
Slide 31: Alternative asset investment platforms
Alternative asset investment platforms ($ millions) Q1 2025 Q1 2024 Asset Management Activities Management fees [1] 59 51 Investment platform expenses (67) (55) Fee-related earnings (loss) [2] (8) (4) Net carried interest [3] 4 3 Sagard (4) (1) Investing Activities Private equity and other strategie
Slide 32: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Adjusted net earnings Adjusted net earnings from continuing operations Mackenzie Mackenzie Financial Corporation AUA Assets under administration MD&A Management’s Discussion & Analysis AUM Assets under management NAV or
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