Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Investor Presentation (March 2025)
49 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, disclosures concerning public investees and basis of presentation
Forward looking statements, disclosures concerning public investees and basis of presentation 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 respon
Slide 3: Presentation of the holding company, non-IFRS financial measures, other measures
Presentation of the holding company, non-IFRS financial measures, other measures and clarifications on adjusted net asset value Presentation of the Holding Company The Corporation’s reportable segments include Great-West, IGM Financial and GBL, which represent the Corporation’s investments in public
Slide 4: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Ark Life Ark Life Assurance Company dac MassMutual Massachusetts Mutual Life Insurance Company AUA Assets under administration MD&A Management’s Discussion & Analysis AUM Assets under management NAV or Net Asset Value A
Slide 5: Reference information
Reference information Websites Recent and Upcoming Events Date Q4 2024 Conference Call March 20, 2025 www.powercorporation.com Q4 2024 Earnings Release March 19, 2025 Investor Day 2025 April 2, 2025 RBC Capital Markets Financial Institutions Conference March 5, 2025 www.greatwestlifeco.com Q4 2024 C
Slide 6: Table of contents
Table of contents • Power Corporation Overview • Value Creation Strategy • Appendix: Recent Transaction Activity POWER CORPORATION OF CANADA MARCH 2025 6
Slide 7: Power Corporation Overview
Power Corporation Overview POWER CORPORATION OF CANADA QUARTERLY MARCH 2025RESULTS 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 5.0% Dividend Yield [1] 68.2% [4] 62.2% [4] 16.5% [5] 50.8% [6] 74.7% [6] $2.79 BILLION 2024 Net Earnings [2] $48.8 BILLION $10.6 BILLION $15.1 BILLION ALTERNATIVE ASSET $2.97 B
Slide 9: Adjusted net asset value (NAV)
Adjusted net asset value (“NAV” or “Net asset value”) NAV per share [1] was $60.44 and book value per participating share [2] was $35.56 at December 31, 2024 Contribution to Gross Asset Value Dec. 31, % of Gross ($ billions, except per share amounts) 2024 Asset Value 4.8% Other 17% Sagard and Power
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) 2024 2023 Net and adjusted
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 consistently delivered superior financial results
Great-West has consistently delivered superior financial results Great-West has met or exceeded all medium-term objectives Medium-Term Delivered Objectives 2020-2024 Base Earnings per $2.88 $3.51 $3.56 $3.94 $4.50 8-10% 12% Share [1] CAGR 1 2 3 4 5 16-17% 17% [3] Base Return 15% 16% 17% 18% Objectiv
Slide 13: Great-West has significantly re-positioned its portfolio over the past 5 years
Great-West has significantly re-positioned its portfolio over the past 5 years Base Earnings and % by Segment [1,2,3] Net Earnings and % by Segment [1,2,4] ($ millions) ($ millions) 4,192 4,011 19% 15% 2,719 20% 20% CRS 14% 2,359 CRS 16% Europe 29% 31% 28% U.S. 13% Europe 42% Canada 44% 30% 37% Cana
Slide 14: IGM Financial overview
IGM Financial overview IGM Financial is a leading Canadian diversified 2024 Highlights wealth and asset management company supporting advisors and the clients they serve in $934 MILLION 13.0% $483.5 BILLION Canada, and institutional investors globally. IGM Net Earnings [1] Return on Equity [1] AUM&A
Slide 15: IGM medium-term objectives
IGM medium-term objectives IGM Financial 5-Year EPS Growth Targets [1] Wealth Asset Management Management 5-Year Core 7%+ [2] Earnings CAGR 5-Year Businesses 9%+ Adjusted EPS CAGR [2,3] Sum-of-the-parts shareholder value creation Strategic 5-Year Investments 15%+ [2,3] Earnings CAGR [1] Announced as
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 $120 million in annual production acquired [2] • Target organic growth of 6-8% [3] Medium-term objectives • Current capacity to scale and create operating leverage & expected benefits • Strong his
Slide 17: GBL overview
GBL overview Transition toward fast-growing private assets % of Portfolio [5] Investment Strategy GBL is a leading and active investor in Europe, • Leading companies in their sector, with a clear and • Net asset value growth focused on long-term value creation with a Listed Assets sustainable busine
Slide 18: GBL has set out a double-digit TSR growth objective
GBL has set out a double-digit TSR [1] growth objective, driven by NAV per share growth and attractive shareholder distributions Objectives for 2027E supported by dividend growth from a new base of €5.00 per share [2] Sources Uses Generating cash… … for new investments… …and shareholder returns… (~€
Slide 19: Alternative asset investment platforms
Alternative asset investment platforms Asset Management Activities Investing Activities Recurring Carried Proprietary Value Fee-Related + Interest + Capital = to Power Earnings Asset Management Activities – Building investment platforms to deliver recurring asset management earnings • Through owners
Slide 20: Asset Management Activities – Sagard and Power Sustainable continue to scale their platforms
Asset Management Activities – Sagard and Power Asset Management Activities Recurring Carried Sustainable continue to scale their platforms Fee-Related Earnings + Interest Funded AUM [1] • Sagard and Power Sustainable continue to scale through ($ in billions) different levers, generating recurring fe
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 • $42.4 billion of AUM [1][2] as at December 31, 2024 AUM Funded AUM Power Third parties Sagard Power Sustainable ($ millions) $42
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 $2.7 billion, targeted to generate 10%+ net returns Power Fair Va
Slide 23: Value Creation Strategy
Value Creation Strategy POWER CORPORATION OF CANADA QUARTERLY MARCH 2025RESULTS PRESENTATION | Q4 2024 23
Slide 24: Power has been pursuing a new value creation strategy since the 2019 reorganization
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] 62% [1] 16% [2] Power Power Non-Public Non-Public Investments Investments 67% 62% 28% 50% [1] As of December 31, 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: Great-West combined its three Canadian 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
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 asset rotation strategy focusing on private and alternative assets
GBL has embarked on an asset rotation strategy focusing on private and alternative assets As at Q4 2024 • Investments in leading companies in their sector, €9.1 BILLION (60%) 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: Sagard has entered into a partnership with GBL
Sagard has entered into a partnership with GBL • In March 2025, GBL and Sagard announced a transaction whereby GBL Capital will acquire a 5% minority interest in Sagard Holdings Management Inc. • As part of the transaction, GBL committed to invest a minimum of €250 million in Sagard-managed funds ov
Slide 36: Power Sustainable has entered into a strategic partnership with Great-West
Power Sustainable has entered into a 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 cre
Slide 37: Returning capital to Power shareholders
Returning capital to Power shareholders $8.2 billion of capital returned to shareholders since 2020 Power’s dividends paid per share have increased for 11 consecutive years ($ millions) 2020 2021 2022 2023 2024 Total • Quarterly dividend increased 8.9% to 61.25¢ Dividends 1,081 1,211 1,331 1,374 1,4
Slide 38: Returning capital to Power shareholders (cont'd)
Returning capital to Power shareholders (cont’d) Capacity for further share buybacks • $1.6 billion of cash and cash equivalents at December 31, 2024, of which $1.3 billion of available cash [1] • Power generally targets to maintain minimum available cash of 2x fixed charges, currently approximately
Slide 39: Significant monetization of assets at the Power level
Significant monetization of assets at the Power level over the last five years to fund share buybacks and support investments $3.6 billion of asset monetizations over the last 5 years [1] $1.8 billion of share buybacks since 2020 with 49.4 million shares repurchased, representing 7.2% of subordinate
Slide 40: Power 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 • Modified definition of Adj
Slide 41: 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 March 19, 2025 Since Period Last 12 Months Last 3 Years Last 5 Years Dec. 31, 2019 Annualized Annualized Annualized Power Corporation
Slide 42: 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 fundraising 30% & Lion merger Dec’15 to Dec’18 Russia-Ukraine 34% average
Slide 43: 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 44: Looking ahead
Looking ahead Power is well-positioned to continue generating attractive returns to its shareholders • Great-West and IGM, 83% 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 4.7% dividend yield [2] o IGM
Slide 45: Appendix: Recent Transaction Activity
Appendix: Recent Transaction Activity POWER CORPORATION OF CANADA QUARTERLY MARCH 2025RESULTS PRESENTATION | Q4 2024 45
Slide 46: A significant number of value-enhancing transactions 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 47: 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 48: 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 49: 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
Power Corporation of Canada — Investor Presentation (March 2025) on 6ix