Power Corporation Of Canada · TSX:POW
Power Corporation Of Canada — Q2 2024 Earnings Presentation
25 slides from Power Corporation Of Canada's earnings presentation, Aug 9, 2024
Slide 1: Q2 2024 Results Investor Presentation
1 Q2 2024 RESULTS Investor Presentation August 9, 2024 1 POWER CORPORATION OF CANADA 1
Slide 2: Forward looking statements, disclosures concerning public investees, basis of presentation
Forward looking statements, disclosures concerning public investees, basis of presentation and presentation of the holding company For definitions of capitalized terms used herein, see "Abbreviations" in the Appendix hereto. Forward Looking Statements In the course of today’s meeting, representative
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 Jake Lawrence President and Executive Vice-President and Chief Executive Officer Chief Financial Officer POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q2 2024 4
Slide 5: Q2 2024 Results
Q224 Results POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q2 2024 5
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 2024 Conference Call August 9, 2024 investor
Slide 7: Power highlights
Power highlights Power delivered strong, consistent results driven by record performance at Great-West • Net earnings from continuing operations were $1.12 per share, compared with $0.82 per share in Q2 2023 • Adjusted net earnings from continuing operations [1] were $1.17 per share, compared with $
Slide 8: Power Q2 2024 financial highlights
Power Q2 2024 financial highlights • Net earnings from continuing operations were $730 million or $1.12 per share, compared with $550 million or $0.82 per share in Q2 2023 • Adjusted net earnings from continuing operations [1] were $761 million or $1.17 per share, compared with $842 million or $1.26
Slide 9: Net and adjusted net earnings from continuing operations
Net and adjusted net earnings from continuing operations • Great-West delivered base earnings exceeding $1 billion. ($ in millions, except per share amounts) Q2 2024 Q2 2023 U.S. is on course to become Great-West’s largest segment, Net and adjusted net earnings [2] reporting double digit earnings gr
Slide 10: Net asset value
Net asset value • NAV per share was $50.48 at June 30, 2024, compared with $53.10 at March 31, 2024 o NAV per share of $50.24 at August 8, 2024 [1] • Book value per participating share was $33.53 at June 30, 2024, compared with $33.04 at March 31, 2024 Jun. 30, % of Gross Mar. 31, % of Gross ($ bill
Slide 11: Great-West delivered double-digit earnings growth
Great-West delivered double-digit earnings growth Base Earnings [2] and Net Earnings from Continuing Operations • Great-West delivered record base earnings for ($ millions) the 4th consecutive quarter o Q2 2024 base and net earnings both exceeded $1 billion +13% base earnings • Strong underlying res
Slide 12: IGM delivered solid results while continuing to grow wealth and asset management
IGM delivered solid results while continuing to grow its wealth and asset management businesses Wealth Management • Q2 2024 adjusted net earnings per share [1] of $0.93, its second best Q2 adjusted EPS on record, up 4.5% compared with Q2 2023 • IGM reported record high AUM&A [2] of $260.1 billion as
Slide 13: GBL is rotating its assets from publicly listed investments into private assets
GBL is rotating its assets from publicly listed investments into private assets Streamlining • GBL continues its asset rotation, streamlining its listed asset portfolio listed • Reduced its adidas stake in 2024, realizing ~€1 billion in gross proceeds and €630 million of net realized gains [1] portf
Slide 14: Value creation from Power's alternative asset investment platforms
Value creation from Power’s 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 manageme
Slide 15: Asset Management Activities – building platforms for 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 16: Investing Activities – Earning attractive returns on proprietary capital
Investing Activities – Earning attractive returns on its proprietary Investing Proprietary capital across multiple strategies Capital Power’s $2.2 billion of proprietary capital targeted to generate 10%+ net returns Power Fair Value Strategies of Investments [1] Target Net IRR [2] Value Realization
Slide 17: Returning capital to Power shareholders
Returning capital to Power shareholders Power is approaching $1 billion of capital returned to shareholders in 2024 • $708 million of dividends paid to participating shareholders at June 30, 2024 • $189 million of shares repurchased under the NCIB program year-to-date at June 30, 2024 o 4.9 million
Slide 18: Power's shareholder returns
Power’s shareholder returns Power has delivered strong shareholder returns in recent periods Total Shareholder Return As at June 30, 2024 Years Last 12 Months Last 3 Years Last 5 Years Annualized Annualized Power Corporation 13.1% 4.7% 12.8% S&P TSX Financials 14.6% 6.0% 9.7% Over / (Under) S&P TSX
Slide 19: 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 20: 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 21: Questions
Questions POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q2 2024 21
Slide 22: Appendix
Appendix POWER CORPORATION OF CANADA QUARTERLY RESULTS PRESENTATION | Q2 2024 22
Slide 23: Ongoing fundraising at alternative asset investment platforms
Ongoing fundraising at alternative asset investment platforms • $37.5 billion of AUM [1][2] as at June 30, 2024 • Over $1 billion of fundraising in 2024 to date across multiple strategies • Sagard entered a strategic partnership with EDC including a US$250 million commitment to Sagard strategies ove
Slide 24: Alternative asset investment platforms
Alternative asset investment platforms ($ millions) Q2 2024 Q2 2023 Asset Management Activities Management fees [1] 56 45 Investment platform expenses (58) (46) Fee-related earnings (loss) [2] (2) (1) Net carried interest [3] 10 (2) Sagard Other (7) (10) 1 (13) Investing Activities Private equity an
Slide 25: Abbreviations
Abbreviations The following abbreviations are used throughout this presentation: adidas adidas AG M&A Mergers and acquisitions Adjusted net earnings Adjusted net earnings from continuing operations Mackenzie Mackenzie Financial Corporation AUM Assets under management MD&A Management’s Discussion & A
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