Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q3 2023 Earnings Presentation
30 slides from Power Corporation Of Canada's earnings presentation, Nov 14, 2023
Slide 1: Investor Presentation Q3 2023 Results
Investor Presentation Q3 2023 Results November 14th, 2023
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" in the Appendix hereto. Forward Looking Statements In the course of today’s meeting, representatives of the Corporation may make, in the
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 Denis Le Vasseur, FCPA Vice-President and Controller PO W E R CO R PO R AT I O N O F CAN ADA Q U A R T E R L Y R E S U L T S PR E S E N T A T I O N | Q 3 2 0 2 3 4
Slide 5: Q3 2023 Results
POWER CORPORATION OF CANADA Q3 2023 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 Q3 2023 Conference Call November 14 Q3 20
Slide 7: Power highlights
Power highlights Continued strong financial results at Great-West and IGM Great-West Q3 2023 base earnings1 of $950 million vs. $809 million2 in Q3 2022 and net earnings from continuing operations of $936 million vs. $986 million in Q3 2022 IGM Q3 2023 net and adjusted net earnings3 of $209.8 mi
Slide 8: Current market environment
Current market environment Our businesses are well-positioned to serve clients and stakeholders amidst uncertain market conditions Last 10 Years Canadian Mutual Fund Monthly Change in Term Deposits Central Bank Lending Rates Third Quarter Industry Net Sales1 at Big Six Banks Canada and U.S. ($ in
Slide 9: Power Q3 2023 financial highlights
Power Q3 2023 financial highlights1 Net earnings from continuing operations were $997 million or $1.50 per share, compared with $642 million or $0.96 per share in Q3 2022 Adjusted net earnings from continuing operations2 were $1,007 million or $1.52 per share, compared with $520 million or $0.78
Slide 10: Net and adjusted net earnings
Net and adjusted net earnings ($ in millions, except per share amounts) Q3 2023 Q3 2022 Net and adjusted net earnings (2) Great-West and IGM contributions: Great-West 649 539 Earnings Focused • Great-West results reflect benefit of recent strategic IGM 130 134 transactions and operational improvem
Slide 11: Net asset value
Net asset value NAV per share was $48.26 at September 30, 2023, compared with $48.86 at June 30, 2023 • Publicly traded operating companies represent 85.6% of gross asset value • NAV per share of $49.98 at November 13, 20231 Book value per participating share was $32.40 at September 30, 2023, co
Slide 12: Great-West continues to grow its wealth businesses
Great-West continues to grow its wealth businesses Canada United States Europe Acquisition of Value Partners Empower Personal Wealth AUA AUA up 16% year-over-year, completed; AUA1 up 10% year- increased 30% year-over-year, reflecting strong net inflows, over-year, including Value from strong n
Slide 13: IG Wealth's leading advisor value proposition
IG Wealth’s leading advisor value proposition 2023 Investment Executive Dealers’ Report Cards Overall Dealer Report Card Rating1 Strong Position vs. Big 5 Bank FSBs Net Promoter Score (out of -100 to +100) Peer Average IG Wealth Rating 8.6 8.8 8.2 8.3 8.4 84 84 7.8 7.6 8.0 8.0 8.0 76 66 54 12 2019 2
Slide 14: ADQ and BMO join Great-West as strategic partners of Sagard
ADQ and BMO join Great-West as strategic partners of Sagard On September 28, Sagard closed new strategic partnerships with ADQ and BMO, and an expanded partnership with Great-West The strategic partners invested capital to drive Sagard’s future growth • On closing, ADQ, an Abu Dhabi-based investme
Slide 15: The Power group has announced a number of value-enhancing transactions in 2023
The Power group has announced a number of value-enhancing transactions in 2023 Date Transaction Size Apr’23 IGM acquires interest in Rockefeller Capital Management US$622 million Apr’23 Canada Life agrees to acquire Investment Planning Counsel from IGM 1 $575 million Apr’23 Power sells its interest
Slide 16: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms $1.2 billion of fundraising in Q3 2023 and an additional $150 million in October 2023 • US$600 million commitment to Power Sustainable’s Global Infrastructure Credit strategy • Sagard Healthcare Partners’ initial close of second series
Slide 17: Building alternative investment platforms
Building alternative investment platforms Sagard and Power Sustainable are focused on growing by attracting third party capital and targeting fee-related earnings contribution as they scale Recurring fees generated on committed capital, invested capital or NAV • Base management fees range from 0
Slide 18: Returning capital to shareholders
Returning capital to shareholders Power has continued to return capital to shareholders in 2023 $1.0 billion of dividends paid to participating shareholders at September 30, 2023 $452 million of shares repurchased under the NCIB program in 20231 • 12.6 million shares or 1.9% of participating sha
Slide 19: Power's shareholder returns
Power’s shareholder returns Power’s shareholder returns have compared favourably to the S&P TSX and S&P TSX Financials indices in recent periods Total Shareholder Return As at October 31, 2023 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Power Corporation 4.9% 15.8% 10.7% S&P
Slide 20: 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 PCC / PFC reorganization announced 35% WHO declares global pandemic Wealthsimple 31.8% fundraising & 30% discount Lion merger Dec’15
Slide 21: 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 growth OpCo • Diversified, broad-based growth at Great-West led by Empower 1 Organ
Slide 22: Questions
POWER CORPORATION OF CANADA Questions
Slide 23: Appendix
POWER CORPORATION OF CANADA Appendix
Slide 24: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: Adjusted net earnings Adjusted net earnings from continuing operations MD&A Management’s Discussion & Analysis adidas adidas AG NAV or Net Asset Value Adjusted net asset value ADQ Abu Dhabi Developmental Holding Co. NCI
Slide 25: 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 26: 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 27: 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 28: IFRS 9 classification of Power's financial assets
IFRS 9 classification of Power’s financial assets Previous Classification (IAS 39) Current Classification (IFRS 9) Listed & Private AFS FVOCI(1) Investments GBL Investments GBL Capital AFS FVPL(1) Investments within AFS (Portage I) FVPL Consolidated Funds FVPL (Portage II, III) FVPL Alternative AFS
Slide 29: GBL reported net asset value
GBL reported net asset value1 Net asset value per share reported by GBL of €109.19 at September 30, 2023 Sep. 30, 2023 Power Share of % of % Sep. 30, 2023 Power Share of % of Value (€M) Value (€M) (2) Portfolio Ownership Value (€M) Value (€M)(2) Portfolio Listed Investments Listed Investments 11,276
Slide 30: Alternative asset investment platforms
Alternative asset investment platforms Asset Management Investing ($ millions) Q3 2023 Q3 2022 Asset Management Activities Activities Activities Sagard Management fees (1) 42 36 + + = Recurring Investment platform expenses (44) (39) Carried Proprietary Value Fee-Related Interest Capital to Power Fee
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