Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — RBC Global Financial Institutions Conference 2022
31 slides from Power Corporation Of Canada's conference presentation, March 2022
Slide 1: Introduction to Power Corporation
Introduction to Power Corporation March 2022
Slide 2: Forward looking statements, COVID-19 and disclosures concerning public investees
Forward looking statements, COVID-19 and disclosures concerning public investees 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 f
Slide 3: Non-IFRS measures and clarifications on net asset value
Non-IFRS measures and clarifications on net asset value Non-IFRS Measures The Corporation completed the Reorganization and announced a change in its strategy in early 2020. In the fourth quarter of 2020, the Corporation modified the presentation of the activities held through Power Financial. Previo
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG NAV Net asset value Ark Life Ark Life Assurance Company dac Northleaf Northleaf Capital Partners AUA Assets under administration NYSE New York Stock Exchange AUM Assets under management Parjointco Parjo
Slide 5: Reference information
Reference information Websites Fourth Quarter Results & Recent Events Q4 2021 Conference Call March 18, 2022 www.powercorporation.com Q4 2021 Earnings Release March 17, 2022 Q4 2021 Conference Call February 10, 2022 www.greatwestlifeco.com Q4 2021 Earnings Release February 9, 2022 Q4 2021
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 since 1968
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 2021 Net 2021 Base Total Assets Great-West Lifeco is an international Earnings1 Earnings1,2 Under Administration2,3 financial services holding company with interests in life insurance, health insurance, $3.128 $3.260 $2.3 retirement and investment services, asset BILLION B
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 serve Wealth Asset Strategic 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, building Results1 Earnings2 Distribution leading companies through long-term €391 €440 €396 engaged and responsible ownership. MILLION MILLION MILLION Invests in and supports European industry leaders with strong marke
Slide 11: Net asset value
Net asset value NAV per share of $52.81 at September 30, 2021, up 51% year over year from $34.94 as of September 30, 2020 % of Gross ($ billions) Sep. 30, 2021 Asset Value Publicly Great-West $23.9 57.7% Traded IGM 6.7 16.2% Operating Companies(1) GBL 3.1 7.6% 33.7 81.4% Alt. Asset Sagard 1.4 3.4%
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 September 30, 2021 64% 67% 62% 14% PCC Non- PCC Non-Public Public Investments Investments 67% 62% 28% 50% POWER CORPORATION OF CANADA | MARCH 2022 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 | MARCH 2022 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 Power Standalone Cash & Asset TSX: GWO TSX: IGM Euronext: GBLB Sagard Sustainable China AMC Businesses Other Assets
Slide 18: 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 19: A significant number of value-enhancing transactions were completed or announced since the reorganization
A significant number of value-enhancing transactions were completed or announced 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
Slide 20: A significant number of value-enhancing transactions were completed or announced since the reorganization (cont'd)
A significant number of value-enhancing transactions were completed or announced since the reorganization (cont’d) Date Event Size Overview $750 million PCC group’s interest valued at $2.6 billion, including $500 million returned as part of a Wealthsimple $250 million primary, secondary offering,
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 and Power Sustainable continue to drive growth in AUM by attracting third party capital
Sagard and Power Sustainable continue to drive growth in AUM by attracting third party capital $3.4 billion1 raised from 3rd party investors at Sep’21 YTD across all 6 strategies 2021 Highlights Funded and Unfunded AUM ($ billions) Launch of Power Sustainable Energy Infrastructure 12.5 Partnership
Slide 23: $12.5 billion of AUM at alternative asset investment platforms
$12.5 billion of AUM at alternative asset investment platforms Funded and Unfunded AUM Total Funded AUM and Funded AUM by Platform September 30, 2021 Total: $12.5 billion Total: $7.6 billion Sagard Power Sustainable ($ millions) $4.9B Unfunded $3,074 AUM – PCC AUM – 3rd parties AUM $4.7B 62% $1,581
Slide 24: 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 Limited partner (LP) in Power Sustainable’s Energy Infrastructure Partnership, Sagard’s Portage and private credit funds, and investor in Northleaf and Sagard Holdings Management Inc. • Advance strateg
Slide 25: China AMC's growth has accelerated
China AMC’s growth has accelerated On January 5, 2022, PCC announced an agreement under which the group’s combined 27.8% ownership in China AMC would be consolidated at IGM A leading asset manager in China across mutual funds, ETFs and institutional AUM1 was RMB¥1,662 billion as of Dec’21, a 14%
Slide 26: Standalone businesses – An additional source of value creation
Standalone businesses – An additional source of value creation PCC will manage standalone businesses, representing $1.6 billion1 of NAV in aggregate, to realize value over time In October 2021, PCC monetized its interest in GP Strategies through its merger with Learning Technologies Group, receivi
Slide 27: 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 Enhanced investment platform and non-consolidated MD&A disclosure Meeting
Slide 28: 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 fundraising & 30% Dec’15 to Dec’18 Lion merger 34% average
Slide 29: 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 30: Appendix
Appendix POWER CORPORATION OF CANADA
Slide 31: Operating expense reduction
Operating expense reduction As of September 30, 2021, we have implemented actions to achieve 93% of the targeted expense reductions, or $47 million on an annual run-rate basis to date Reorganization of asset management activities Rationalization of real estate business Restructuring of the Gro
Power Corporation of Canada — RBC Global Financial Institutions Conference 2022 on 6ix