Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Investor Presentation (March 2025)
46 slides from Power Corporation Of Canada's investor presentation, March 2025
Slide 1: Introduction to Power Corporation
INTRODUCTION TO Power Corporation March 2025
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“. 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 th
Slide 3: Basis of presentation, non-IFRS financial measures and other measures
Basis of presentation, non-IFRS financial measures and other measures Basis of Presentation The condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Ark Life Ark Life Assurance Company dac Mackenzie Mackenzie Financial Corporation AUA Assets under administration MassMutual Massachusetts Mutual Life Insurance Company AUM Assets under management MD&A Management’s Disc
Slide 5: Reference information
Reference information Websites Recent and Upcoming Events Date Q4 2024 Earnings Release March 19, 2025 www.powercorporation.com Q3 2024 Conference Call November 13, 2024 Q3 2024 Earnings Release November 12, 2024 Investor Day 2025 April 2, 2025 www.greatwestlifeco.com Q4 2024 Conference Call Februar
Slide 6: Table of contents
Table of contents • Power Corporation Overview • Value Creation Strategy • Appendix: Recent Transaction Activity POWER CORPORATION OF CANADA FEBRUARY 2025 6
Slide 7: Power Corporation Overview
Power Corporation Overview POWER CORPORATION OF CANADA QUARTERLY2025 FEBRUARY RESULTS PRESENTATION | Q4 2024 7
Slide 8: Power Corporation is an international management company focused on financial services
Power Corporation is an international management company focused on financial services $31.6 BILLION Market Capitalization 4.6% Dividend Yield [1] 68.2% [3] 62.5% [3] 16.5% [4] 51.9% [5] 74.7% [5] $2.28 BILLION 2023 Net Earnings [2] $50.1 BILLION $10.8 BILLION $14.3 BILLION ALTERNATIVE ASSET Market
Slide 9: Adjusted net asset value (NAV)
Adjusted net asset value (“NAV” or “Net asset value”) NAV per share [1] was $57.92 at September 30, 2024 Contribution to Gross Asset Value Sep. 30, % of Gross ($ billions, except per share amounts) 2024 Asset Value 5.8% Other 18% Sagard and Power Sustainable NA V 7.0% Publicly Great-West $29.3 67.9%
Slide 10: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations Power’s earnings underscored by stable recurring earnings contribution from Great-West and IGM, with other investment businesses and investments focused on value appreciation ($ in millions, except per share amounts) 2023 2022 Q3 2024 Q3 2023
Slide 11: Great-West Lifeco overview
Great-West Lifeco overview 2024 Highlights Great-West Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. Great- $4.01 BILLION 16.7% $802 BILLION Net Earnings – Return on Equity – Consolidated Assets West provides wealth, retire
Slide 12: Great-West has set out and delivered strong performance against its financial objectives
Great-West has set out and delivered strong performance against its financial objectives Medium-term financial objectives first announced at Great-West’s June 2021 Investor Day 2024 2021–2024 2019–2024 Medium-Term Financial Objectives 1-Year 3-Year [2] 5-Year [2] 8-10% base EPS [1] growth per annum
Slide 13: Great-West has repositioned its U.S. business to become its largest contributor to earnings
Great-West has repositioned its U.S. business to become its largest contributor to earnings • In 2018, U.S. business was U.S. Segment Contribution to Earnings per Share U.S. spread across 3 sub-scale 31% franchises in life insurance, asset management and U.S. retirement 13% $4.50 • Great-West has re
Slide 14: IGM Financial overview
IGM Financial overview 2024 Highlights IGM Financial is a leading Canadian diversified wealth and asset management company supporting advisors and the clients they serve $934 MILLION 13.0% $483.5 BILLION in Canada, and institutional investors globally. Net Earnings [1] Return on Equity [1] AUM&A Inc
Slide 15: IGM announced medium-term objectives as part of its December 2023 Investor Day
IGM announced medium-term objectives as part of its December 2023 Investor Day IGM Financial 5-Year EPS Growth Wealth Asset management management 5-Year 7%+ [1] Earnings CAGR 5-Year 9%+ Adjusted EPS CAGR [1,2] Sum-of-the-parts shareholder value creation 5-Year 15%+ [1,2] Earnings CAGR [1] “Adjusted
Slide 16: IGM's strategic investments diversify and accelerate earnings growth profile
IGM’s strategic investments diversify and accelerate earnings growth profile [1] • Target recruiting of $120 million in annual production acquired [2] • Target organic growth of 6-8% [3] Medium-term objectives • Current capacity to scale and create operating leverage & expected benefits • Strong his
Slide 17: GBL overview
GBL overview Transition toward fast-growing private assets GBL is a leading and active investor in Europe, focused on long-term value creation with a % of Portfolio [5] Investment Strategy diversified high-quality portfolio of listed and • Leading companies in their sector, • Net asset value growth
Slide 18: GBL has set out double-digit NAV per share and TSR growth objectives
GBL has set out double-digit NAV per share and TSR [1] growth objectives Objectives for 2027E supported by dividend growth from a new base of €5.00 per share [2] Sources Uses Generating cash… … for new investments… …and shareholder returns… (~€7 billion) (~€3 billion) (~€3 billion) • Disposals (~€5
Slide 19: Alternative asset investment platforms
Alternative asset investment platforms Asset Management Activities Investing Activities Recurring Carried Proprietary Value Fee-Related + Interest + Capital = to Power Earnings Asset Management Activities – Building investment platforms to deliver recurring asset management earnings • Through owners
Slide 20: Asset Management Activities – Building investment platforms to deliver recurring earnings
Asset Management Activities – Building investment platforms Asset Management Activities Recurring Carried to deliver recurring asset management earnings Fee-Related Earnings + Interest Sagard and Power Sustainable continue to scale through different Carried interest represent a meaningful driver of
Slide 21: Asset Management Activities – Ongoing fundraising at alternative asset investment platforms
Asset Management Activities – Ongoing fundraising at Asset Management Activities Recurring Carried alternative asset investment platforms Fee-Related Earnings + Interest • $39.0 billion of AUM [1,2] as at September 30, 2024 • $1.9 billion of fundraising in 2024, as at September 30, 2024, across mult
Slide 22: Investing Activities – Earning attractive returns on its proprietary capital
Investing Activities – Earning attractive returns on its Investing Proprietary proprietary capital across multiple strategies Capital Power’s proprietary capital invested in Sagard and Power Sustainable strategies, currently valued at $2.5 billion, targeted to generate 10%+ net returns Power Fair Va
Slide 23: Value Creation Strategy
Value Creation Strategy POWER CORPORATION OF CANADA QUARTERLY2025 FEBRUARY RESULTS PRESENTATION | Q4 2024 23
Slide 24: Power has been pursuing a new value creation strategy since the reorganization in late 2019
Power has been pursuing a new value creation strategy since the reorganization announced in late 2019 • Focused upon financial services, not diversification • Publicly traded companies investing organically and through active M&A to position for higher growth • At the Power level, adding additional
Slide 25: Value creation strategy is focused on three key levers
Power group of companies’ value creation strategy is focused on three key levers Organic growth strategies at each of our publicly traded operating 1 OpCo Organic Levers companies (OpCos) 2 OpCo M&A Levers Deployment and redeployment of capital Power Company 3 Level Levers Actions we can take at Pow
Slide 26: Value creation strategy consistent with Power's key principles
Value creation strategy launched during reorganization consistent with Power’s key principles Our key principles reflect the long-term orientation of the Desmarais family, controlling shareholders of Power since 1968 • Long-term perspective & investment horizon • Build industry leaders with attracti
Slide 27: Simplification of Power's group structure
Simplification of Power’s group structure Pre-December 2019 Reorganization Present 64% 68% [1] 63% [1] 17% [2] Power Power Non-Public Non-Public Investments Investments 67% 62% 28% 50% [1] As of September 30, 2024. Power held 68.2% of Great-West; IGM held an additional 2.4% of Great-West. Power held
Slide 28: Power has re-positioned its businesses for higher growth
Power has re-positioned its businesses for higher growth Great-West OpCo • Re-positioned through M&A and organic investments 1 Organic • Attractive, diversified growth prospects led by Empower’s retirement and wealth business in Levers the U.S. IGM Financial • Leading core franchises and high-growth
Slide 29: Strategic repositioning of Great-West's U.S. business
Strategic repositioning of Great-West’s U.S. business to accelerate growth in retirement and wealth 2018 Last Five Years Today 2019 2020 2021 2022 2023 Acquisitions Retirement Services Business Full-Service Retirement Business Divestments 2nd largest U.S. retirement services provider [1] U.S. Indivi
Slide 30: In Canada, Great-West combined its three franchises into Canada Life
In Canada, Great-West combined its three franchises into Canada Life and has been investing to enhance product, distribution and efficiency 2020 Amalgamation to simplify the business, unite its employees and better serve its client base Leading insurance, wealth management and benefit provider servi
Slide 31: IGM owns leading wealth and asset management franchises in Canada
IGM owns leading wealth and asset management franchises in Canada and has high growth plays in the U.S. and China Wealth management • IG Wealth has strengthened its advisor force, product suite and technology platform for the benefit of its clients and to cater to the high-net-worth market • In Apri
Slide 32: GBL has embarked on an asset rotation strategy focusing on private assets
GBL has embarked on an asset rotation strategy focusing on private and alternative assets As at Q3 2024 • Investments in leading companies in their sector, €10.6 BILLION (63%) with a clear and sustainable business model Listed Assets • Focus on private assets to create a less replicable portfolio €3
Slide 33: Development of Power's alternative asset management businesses
Development of Power’s alternative asset management businesses • Operate in asset classes where we can create competitive advantage • Platforms’ growth strategy is focused on raising 3rd party capital • Power invests proprietary capital in the strategies of Sagard and Power Sustainable to support th
Slide 34: Sagard pursuing growth through a number of strategic transactions
Sagard pursuing growth through a number of strategic transactions (formerly ADQ) • In September 2023, Sagard closed • In January 2024, Sagard acquired a • In March 2024, Sagard acquired a new strategic partnerships with strategic interest in Performance 40% stake in HalseyPoint Lunate (formerly ADQ)
Slide 35: Power Sustainable strategic partnership with Great-West
Power Sustainable strategic partnership with Great-West • In May 2024, Power Sustainable announced a new long-term strategic partnership with Great-West o Enables Power Sustainable to accelerate its growth and market penetration in sustainable private equity and infrastructure credit o Supports Grea
Slide 36: Returning capital to Power shareholders
Returning capital to Power shareholders $1.4 billion of capital returned to shareholders year-to-date Power’s dividends paid per share have increased at September 30, 2024 for 10 consecutive years • Quarterly dividend increased 7.1% to 56.25¢ 2020 2021 2022 2023 YTD 2024 ($ millions) per participati
Slide 37: Returning capital to Power shareholders (cont'd)
Returning capital to Power shareholders (cont’d) Capacity for further share buybacks • $1.4 billion of cash and cash equivalents at September 30, 2024, of which $1.0 billion of available cash [1] o Additional cash of US$325 million [2] from the sale of Peak, received subsequent to September 30, 2024
Slide 38: Power Corporation and its OpCos have elevated their communication programs
Power Corporation and its OpCos have elevated their communication programs with the investment community • Increased communication with stakeholders • Launched quarterly earnings call in Q1’20 • Enhanced investment platform disclosure aligned with business model in Q2’20 • Base earnings metric, new
Slide 39: Power's shareholder returns
Power’s shareholder returns Total Shareholder Return As at February 28, 2025 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Power Corporation 33.2% 14.3% 17.2% S&P TSX Financials 31.4% 10.2% 14.6% Over / (Under) S&P TSX Financials 1.8% 4.1% 2.6% S&P TSX 23.1% 9.8% 12.8% Over /
Slide 40: Power discount to NAV
Power discount to NAV [1] Power’s discount to NAV has been narrowing through execution of its value creation strategy 40% Great-West sale of U.S. life business announced PCC / PFC reorganization announced Putnam sale 35% announced WHO declares global pandemic Wealthsimple fundraising 30% & Lion merg
Slide 41: 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 Empo
Slide 42: Appendix: Recent Transaction Activity
Appendix: Recent Transaction Activity POWER CORPORATION OF CANADA QUARTERLY2025 FEBRUARY RESULTS PRESENTATION | Q4 2024 42
Slide 43: A significant number of value-enhancing transactions have been announced since the reorganization
A significant number of value-enhancing transactions have been announced since the reorganization Date Event Size Overview Feb’20 Reorganization of Power and PFC $8.7 billion • Completed the reorganization of PFC and Power to eliminate dual holding company structure Mar’20 Reorganization of Pargesa
Slide 44: Value-enhancing transactions since the reorganization (cont'd)
A significant number of value-enhancing transactions have been announced since the reorganization (cont’d) Date Event Size Overview $750 million • Valued Power group’s interest at $2.6 billion as of the transaction date, including May’21 Wealthsimple Fundraising $250 million primary $500 million ret
Slide 45: Value-enhancing transactions since the reorganization (cont'd)
A significant number of value-enhancing transactions have been announced since the reorganization (cont’d) Date Event Size Overview • Combination creates a prominent global player in customer experience • GBL to be paid with a combination of Concentrix shares, earn-out shares and a seller note to be
Slide 46: Value-enhancing transactions since the reorganization (cont'd)
A significant number of value-enhancing transactions have been announced since the reorganization (cont’d) Date Event Size Overview • New strategic partnerships between Sagard, Lunate (formerly ADQ), an Abu Dhabi-based Lunate and BMO acquire minority equity investment and holding company, and Bank o
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