Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q2 2022 Earnings Presentation
34 slides from Power Corporation Of Canada's earnings presentation, Aug 8, 2022
Slide 1: Investor Presentation Q2 2022 Results
Investor Presentation Q2 2022 Results August 8th, 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 listeners/readers in their analys
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 2 2 0 2 2 4
Slide 5: Q2 2022 Results
POWER CORPORATION OF CANADA Q2 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 Q2 2022 Conference Call August 8, 2022 inve
Slide 7: Power's Q2 2022 highlights
Power’s Q2 2022 highlights Solid earnings at publicly traded operating companies amidst volatile environment Great-West reported second quarter net earnings of $735 million, compared with $784 million in Q2 2021 and adjusted net earnings1 of $830 million, compared with $826 million in Q2 2021 IG
Slide 8: Current market environment
Current market environment Our businesses are well-positioned to serve clients and stakeholders amidst the current volatile environment Last Ten Years Canadian Mutual Fund Market Performance Second Quarter Industry Net Sales1 (Indexed to 100 as at Dec. 31, 2021) ($ in billions) 105 30 100 20 95 10
Slide 9: Power Q2 2022 financial highlights
Power Q2 2022 financial highlights Net EPS were $0.78, compared with $1.47 in Q2 2021 Adjusted net EPS1 were $0.87, compared with $1.51 in Q2 2021 Adjusted net asset value (“NAV” or “Net Asset Value”) per share1 was $41.49 at June 30, 2022, compared with $49.92 at March 31, 2022 • Adjusted net
Slide 10: Solid net and adjusted net earnings
Solid net and adjusted net earnings Net earnings were $527 million or $0.78 per share ($ in millions, except per share amounts) Q2 2022 Q2 2021 Great-West Lifeco 552 551 Adjusted net earnings1 were $584 million or $0.87 IGM 129 148 per share GBL (44) 24 • Great-West’s diversified business mix de
Slide 11: Net asset value
Net asset value NAV per share was $41.49 at June 30, 2022, compared with $49.92 at March 31, 2022 • Publicly traded operating companies represent 80.5% of gross asset value • Investments measured at market value and cash represent 89.3% of the total assets at fair value • NAV per share of $41.83 a
Slide 12: Integrations on track for Empower's U.S. acquisitions
Integrations on track for Empower’s U.S. acquisitions Leveraging acquired businesses to drive Great-West’s longer-term strategy for Empower, both as a leader in D.C. retirement and as a growing retail wealth manager Client, asset, and revenue retention tracking ahead of original expectations Com
Slide 13: IG Wealth's clients remain committed to financial plans
IG Wealth’s clients remain committed to financial plans, IG focused on client engagement and gamma Year-to-date net client inflows of $1.9 billion were the highest result in over 20 years, an increase of $170 million from net client inflows of $1.7 billion in 2021 Gross Flows from Newly Acquired Cli
Slide 14: GBL continues to actively execute its strategy
GBL continues to actively execute its strategy despite the volatile macroeconomic backdrop Continued asset rotation increasing its exposure to healthcare and private assets • In July, invested €728 million in Sanoptis, one of the largest ophthalmology clinic companies in Germany and Switzerland an
Slide 15: Power has monetized $1.0 billion of assets since the beginning of 2021
Power has monetized $1.0 billion of assets since the beginning of 2021 Additional $575 million pre-tax proceeds expected from the pending ChinaAMC transaction Date Event Size Sale of LP interest in Sagard Europe 3 $334 million $187 million1 Wealthsimple fundraising secondary offering Power Sustainab
Slide 16: Power has returned $2.4 billion of capital to shareholders
Power has returned $2.4 billion of capital to shareholders since the beginning of 2021 $1.9 billion of dividends paid during the period and $511 million of shares repurchased, including $358 million in 2022 Quarterly dividends increased by 10.6% in November 2021 13.5 million of shares repurchase
Slide 17: Standalone businesses remain an additional source of value creation
Standalone businesses remain an additional source of value creation The standalone businesses, representing $914 million1 of NAV in aggregate, will be managed by Power to realize value over time August 5, 2022 Fair Value Business (Publicly Traded Co’s) Progress in Surfacing and Realizing Value In
Slide 18: Building alternative investment platforms to deliver recurring earnings
Building alternative investment platforms to deliver recurring asset management earnings Power expects to generate recurring earnings from its asset management operations Sagard and Power Sustainable are focused on growing their respective platform by attracting third party capital and adhering to
Slide 19: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $19.2 billion of funded and unfunded AUM1, compared with $19.0 billion as at March 31, 2022 $1.2 billion of fundraising in 2022 to date, including $0.6 billion in Q2 20222 • In June, Power Sustainable Lios announced a $210 million3 cl
Slide 20: Power's investment in China public equities has generated strong returns
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 $792 million at June 30, 2022 • $70 million of losses were realized in Q2 2022 as the portfolio is being repositioned to seize opportunities in the
Slide 21: PCC's fintech strategy is creating shareholder value
PCC’s fintech strategy is creating shareholder value Direct ownership of innovative companies that have a high impact on the group’s existing financial services Make significant business models investments in 1 critical future • Mackenzie’s partnership with Wealthsimple to deliver socially respons
Slide 22: ChinaAMC continues to build business momentum
ChinaAMC’s continues to build business momentum On January 5, 2022, PCC announced an agreement under which the group’s combined 27.8% equity ownership stake in ChinaAMC would be consolidated at IGM A leading asset manager in China across mutual funds, ETFs and institutional AUM1 was RMB¥1,740 bi
Slide 23: Power discount to NAV
Power discount to NAV1 Power’s discount to NAV has been narrowing through execution of its value creation strategy 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%
Slide 24: Power Group continues to make progress on ESG initiatives
Power Group continues to make progress on ESG initiatives Power remains a constituent of the FTSE4Good Index Series following the FTSE4Good Index Review in June 2022 Putnam Investments to create Putnam Sustainable Retirement Funds, employing sustainability-focused or ESG principles and strategie
Slide 25: 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 Continue to drive earnings growth at OpCos, building on significant business momentum OpCo • Diversified, broa
Slide 26: Questions
POWER CORPORATION OF CANADA Questions
Slide 27: Appendix
POWER CORPORATION OF CANADA Appendix
Slide 28: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG NAV or Net Asset Value Adjusted net asset value Affidea Affidea Group B.V. NCI Non-controlling interests AUA Assets under administration NCIB Normal course issuer bid AUM Assets under management NYSE Ne
Slide 29: 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 30: 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 31: 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 32: GBL reported net asset value
GBL reported net asset value1 GBL net asset value per share of €116.53 at June 30, 2022, compared to €136.10 at March 31, 2022 Jun. 30, 2022 Power Share of % of % Jun. 30, 2022 Power Share of % of (2) (2) Value (€M) Value (€M) Portfolio Ownership Value (€M) Value (€M) Portfolio Listed Investments Li
Slide 33: Power's alternative asset investment platforms
Power’s alternative asset investment platforms Asset Management Investing ($ millions) Q2 2022 Q2 2021 Activities Activities Asset Management Activities Sagard + + = Recurring Management fees (1) 43 18 Carried Proprietary Value Fee-Related Investment platform expenses (39) (24) Interest Capital to P
Slide 34: 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
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