Power Financial Corporation · TSX:PWF.PF.A
Power Financial — Shareholder Meeting (2018)
82 slides from Power Financial's shareholder meeting presentation, 2018
Slide 1: 2018 Annual Shareholder Meeting
2018 Annual Shareholder Meeting
Slide 2: Forward-looking information
In the course of today’s meeting, officers of the Corporation may make, in their will not be achieved. A variety of factors, many of which are beyond the that the list of factors in the previous paragraph, collectively, are not expected to remarks or in response to questions, and the accompanying ma
Slide 3: Earnings
Earnings 2017 ($ MILLION) PER SHARE ($) Net Earnings 1,717 2.41 Adjusted Net Earnings 2,135 2.99 attributable to common shareholders P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 4: Dividends per Share
Dividends per Share $1.73 $1.65 $1.57 $1.49 $1.40 2014 2015 2016 2017 2018 (annualized) P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 5: Return on Equity
Return on Equity 12.3% Adjusted Net Earnings P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 6: Creating Shareholder Value
4l Creating POWER ON Shareholder Value
Slide 7: Key Principles
Key Principles ‣ Long-term perspective ‣ Leading franchises with attractive growth profiles ‣ Strong governance oversight ‣ Prudent, risk aware, strong financial position P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 8: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 9: Slide 9
Slide 10: Group Strategy
Group Strategy 1. Transform our advisor-based distribution businesses 2. Harness the full potential of our group customers 3. Reshape global asset management 4. Increase the competitiveness/profitability of core insurance businesses 5. Deploy and redeploy group capital 6. Develop a portfolio of posi
Slide 11: Power Financial Corporation
| POWER FINANCIAL GORPORATION
Slide 12: Great-West Lifeco
GREAT-WEST ee LIFECOr«
Slide 13: Adjusted Net Earnings
Adjusted Net Earnings Contribution to Power Financial $2,647 $1,791 million million attributable to common shareholders P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 14: Paul Mahon
Paul Mahon President and Chief Executive Officer P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 15: Great-West Lifeco at a glance
Assets under Assets under management administration 30 million $700 $1.35 customers billion trillion P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 16: Canada
GREAT-WEST LIFECOx: Canada
Slide 17: 13 million people, 1 in 3 Canadians
13 million 1 in 3 people Canadians P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 18: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 19: Acquisition of Financial Horizons Group
Acquisition of Financial Horizons Group P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 20: Acquisition of EverWest
Acquisition of EverWest P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 21: Student Debt Repayment
Student Debt Repayment P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 22: United States
GREAT-WEST LIFECOx< United States
Slide 23: United States
United States 2nd-largest provider of defined contribution plans in the U.S. Over 8.5 million individuals US$530 billion assets under administration P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 24: United States
United States P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 25: United States
United States P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 26: Industry Recognition
Industry Recognition P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 27: United States
United States P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 28: Europe
GREAT-WEST LIFECO< Europe
Slide 29: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 30: United Kingdom
United Kingdom P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 31: United Kingdom
United Kingdom The Retire ment Acco Certainty, flexibili ty and sim unt plicity for life P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 32: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 33: Ireland
Ireland Fertility Maternity extra extra Travel Children extra extra Sports You extra extra P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 34: Germany
Germany P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 35: Slide 35
Slide 36: Adjusted Net Earnings
Adjusted Net Earnings Contribution to Power Financial $728 $428 million million available to common shareholders P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 37: Jeffrey R. Carney
Jeffrey R. Carney President and Chief Executive Officer IGM Financial and Investors Group P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 38: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 39: Assets under Management $156.5 billion
Assets under Management $156.5 billion at December 31, 2017 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 40: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 41: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 42: Certified Financial Planner
Certified Financial Planner P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 43: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 44: Record High Sales in 2017
Record High Sales in 2017 Best Record Net Sales Gross Sales since 2007 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 45: Growth in High Net Worth Solutions
Growth in High Net Worth Solutions High net worth % of total sales 46% 36% 25% Q4/15 Q4/16 Q4/17 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 46: Barry McInerney
Barry McInerney President and Chief Executive Officer Mackenzie Investments P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 47: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 48: Investment Product Net Sales
Investment Product Net Sales Twelve months ended December 31 $3.3 billion -$0.8 billion 2017 2016 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 49: Environics Research Advisor Perception Study
Environics Research Advisor Perception Study 2017 2016 3 rd 2015 4 th* 2014 5 th 2013 11 th 13 th * Adjusted to remove new entrant Edgepoint P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 50: Historical High Net Sales
Historical High Net Sales Twelve months ended December 31 $4.8 billion -$1.8 billion 2017 2016 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 51: Record First Quarter Net Sales
Record First Quarter Net Sales Three months ended March 31 $1.4 billion $0.8 billion Q1 2017 Q1 2018 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 52: Market Share Gains
Market Share Gains Investment Fund Net Sales Rates TTM as % of average assets under management (as at December 31, 2017) 3.5% 2.2% Industry Peers* Investors Group Mackenzie * Includes mutual fund industry, excluding bank-owned fund managers 2014 2015 2016 2017 P OWE R F I NA NCIAL CORPORATION 201 8
Slide 53: IGM Financial announces single global investment management organization
s e wRs e R l e l e a e s a see N ewN R M A T I O N OF N N O UN C E S FO A T I O N IA L I N C . A T OR G A N I Z IGM FINANC M E N T MA N AG E ME N B A L IN VE S T SIN G LE G LO ced th a t the announ ) today In c . ( T S X : I G M m e n t s a r e j oining I G M F i n a ncial M a c k e n z i e Invest
Slide 54: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 55: #1 brand, #1 in ETFs
#1 brand #1 in exchange traded funds #1 in combined long-term mutual funds and institutional assets under management Over 50 million customers P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 56: Combined Ownership
Combined Ownership of 13.9% + 13.9% = 27.8% P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 57: Strategic Relationship
Strategic Relationship P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 58: Fintech
i POWER FINANCIAL | CORPORATION F | ntech
Slide 59: Fintech
Fintech P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 60: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 61: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 62: Digital Innovation
Digital Innovation P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 63: Slide 63
Slide 64: Net Earnings
Net Earnings Contribution to Power Financial SF382 $131 million million P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 65: Arnaud Vial
Arnaud Vial Managing Director of Pargesa P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 66: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 67: GBL Net Asset Value and Market Capitalization
GBL GBL Net Asset Value Market Capitalization €19 €15 billion billion P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 68: P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA
P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 69: Ian Gallienne and Gérard Lamarche
Ian Gallienne Co-CEO Gérard Lamarche Co-CEO P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 70: GBL Investments since 2012
GBL Investments since 2012 ‣ Invested €5.7 billion in 7 listed companies ‣ Global market value €8.5 billion ‣ Unrealized capital gains of €2.8 billion P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 71: GBL Net Asset Value
GBL Net Asset Value Years ended December 31 €18.9 billion €17.0 billion 11% 2016 2017 P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 72: Corporate Social Responsibility
Corporate Social Responsibility
Slide 73: PowerFinancialCSR.com
PowerFinancialCSR.com UNITED NATIONS GLOBAL COMPACT ADVANCED LEVEL COMMUNICATION ON PROGRESS S E P T E M B E R 2 01 7 WE SUPPORT P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 74: PowerFinancialCSR.com
PowerFinancialCSR.com P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 75: A- Leadership
PowerFinancialCSR.com A- Leadership Power Corporation of Canada Power Financial Corporation Great-West Lifeco Inc. IGM Financial Inc. P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 76: Community Investments
Community Investments P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 77: Community Investments
Community Investments P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 78: Community Investments
Community Investments P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 79: First Quarter Results
A | First Quarter SON Results
Slide 80: First Quarter Results
First Quarter Results ($ MILLION) 2018 2017 Net Earnings 586 484 +21% Adjusted Net Earnings 586 501 +17% attributable to common shareholders P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 81: Quarterly Dividend
Quarterly Dividend $0.4330 per common share P OWE R F I NA NCIAL CORPORATION 201 8 A N N UA L S H A RE H OLD E R M E E T I N G
Slide 82: Annual Shareholder Meeting
2018 Annual Shareholder Meeting