Adjusted Net Asset Value

Adjusted net asset value represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is the fair value of the assets of the combined Power Corporation and Power Financial holding company balance sheet less their net debt and preferred shares. The Corporation's adjusted net asset value per share is presented on a look-through basis. 

 

AS AT
[IN MILLIONS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS]
(UNAUDITED)



June 30, 2022



December 31, 2021

Publicly
Traded
Operating
Companies

Lifeco

19,494

23,545

IGM

5,104

6,749

GBL(1) 

2,384

3,157

 

26,982

33,451

       

Alternative
Asset Investment
Platforms

Sagard(2)

949

1,515

Power Sustainable(2)

1,463

1,654

   

2,412

3,169

       

Other

ChinaAMC

1,150

1,150

Standalone businesses(3)

914

1,331

Other assets and investments

575

661

Cash and cash equivalents

1,492

1,635

   

4,131

4,777

       
 

Total assets, at fair value

33,525

41,397

 

Liabilities and preferred shares(4)(5)

(5,745)

(5,810)

 

Adjusted net asset value

27,780

35,587

       
 

Shares outstanding (millions)

669.5

676.6

 

Adjusted net asset value per share

41.49

52.60


(1) The Corporation’s share of GBL’s reported net asset value was $3.6 billion (€2.7 billion) at June 30, 2022 ($4.7 billion (€3.3 billion) at December 31, 2021).
(2) The management companies of the investment funds are presented at their carrying value and are primarily composed of cash and net carried interest receivable. 
(3) An additional deferred tax liability of $16 million has been included in the adjusted net asset value at June 30, 2022 ($80 million at December 31, 2021) with respect to the investments in standalone businesses at fair value, without taking into account possible tax planning strategies. The Corporation has tax attributes (not otherwise recognized on the balance sheet) that could be available to minimize the tax if the Corporation were to dispose of its interests held in the standalone businesses. 
(4) In accordance with IAS 12, Income Taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation.
(5) At June 30, 2022, an additional deferred tax liability of $41 million ($39 million at December 31, 2021) has been included in the adjusted net asset value related to the investment in ChinaAMC at fair value. 


In determining the fair value of assets, investments in subsidiaries, jointly controlled corporations and associates are adjusted to fair value as follows:

  • Investments in publicly traded companies are valued at their market value, measured as the closing share price on the reporting date;
  • Investments in private entities are valued at fair value based on management’s estimate using consistently applied valuation models either based on a valuation multiple or discounted cash flows. Certain valuations are prepared by external valuators or subject to review by external valuators. Market-comparable transactions are generally used to corroborate the estimated fair value. The value of investments in private entities is presented net of any management incentives;
  • Investments in investment funds are valued at the fair value reported by the fund which is net of carried interest or other incentives.

Investments measured at market value and cash represent 89.3% of the total assets at fair value at June 30, 2022 (89.7% at December 31, 2021). 

The presentation of the investments in subsidiaries, jointly controlled corporations and associates at fair value is not in accordance with IFRS; adjusted net asset value is a non-IFRS financial measure. Refer to the section “Non-IFRS Financial Measures” of the Corporation's most recent Management's Discussion and Analysis for the definition of non-IFRS financial measures and their reconciliation with IFRS financial measures.

Book value per participating share represents Power Corporation's participating shareholders' equity divided by the number of participating shares outstanding at the end of the reporting period. Participating shareholers' equity is the total assets of the combined Power Corporation and Power Financial holding company balance sheet, including investments in subsidiaries presented using the equity method, less their net debt and preferred shares. 
 

AS AT
[IN MILLIONS OF CANADIAN DOLLARS, EXCEPT PER SHARE AMOUNTS]
(UNAUDITED)



June 30, 2022



December 31, 2021

Publicly
Traded
Operating
Companies

Lifeco

15,667

15,496

IGM

3,552

3,434

GBL 

3,216

4,278

 

22,435

23,208

       

Alternative
Asset Investment
Platforms

Sagard

698

822

Power Sustainable

1,280

1,389

   

1,978

2,211

       

Other

ChinaAMC

738

766

Standalone businesses

760

725

Other assets and investments

517

611

Cash and cash equivalents

1,492

1,635

   

3,507

3,737

       
 

Total assets

27,920

29,156

 

Liabilities and preferred shares

(5,704)

(5,771)

 

Participating shareholders' equity

22,216

23,385

       
 

Shares outstanding (millions)

669.5

676.6

 

Book value per participating share

33.18

34.56

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