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)



September 30, 2022



December 31, 2021

Publicly
Traded
Operating
Companies

Lifeco

18,496

23,545

IGM

5,092

6,749

GBL(1) 

2,128

3,157

 

25,716

33,451

       

Alternative
Asset Investment
Platforms

Sagard(2)

976

1,515

Power Sustainable(2)

1,356

1,654

   

2,332

3,169

       

Other

ChinaAMC

1,150

1,150

Standalone businesses(3)

855

1,331

Other assets and investments

595

661

Cash and cash equivalents

1,407

1,635

   

4,007

4,777

       
 

Total assets, at fair value

32,055

41,397

 

Liabilities and preferred shares(4)(5)

(5,744)

(5,810)

 

Adjusted net asset value(6)

26,311

35,587

       
 

Shares outstanding (millions)

668.1

676.6

 

Adjusted net asset value per share(6)

39.38

52.60


(1) The Corporation’s share of GBL’s reported net asset value was $3.4 billion (€2.6 billion) at September 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 $4 million has been included in the adjusted net asset value at September 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 September 30, 2022, an additional deferred tax liability of $40 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. 

(6) The presentation of the participating shareholders’ equity of the Corporation at fair value is not in accordance with IFRS. Adjusted net asset value is a non-IFRS financial measure, and adjusted net asset value per share is a non-IFRS ratio. Non-IFRS financial measures (including non-IFRS ratios) do not have a standard meaning and may not be comparable to similar measures used by other entities. For definitions, further explanations of uses and reconciliations of non-IFRS financial measures to measures prescribed by IFRS, refer to the “Non-IFRS Financial Measures” and “Adjusted Net Asset Value” sections of Part A of the Corporation’s most recent Management’s Discussion and Analysis, located under the Corporation’s profile on SEDAR at www.sedar.com, which sections, definitions, explanations and reconciliations are incorporated herein by reference.


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 88.6% of the total assets at fair value at September 30, 2022 (89.7% at December 31, 2021). 

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 shareholders' 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)



September 30, 2022



December 31, 2021

Publicly
Traded
Operating
Companies

Lifeco

16,074

15,496

IGM

3,603

3,434

GBL 

3,023

4,278

 

22,700

23,208

       

Alternative
Asset Investment
Platforms

Sagard

718

822

Power Sustainable

1,148

1,389

   

1,866

2,211

       

Other

ChinaAMC

753

766

Standalone businesses

769

725

Other assets and investments

524

611

Cash and cash equivalents

1,407

1,635

   

3,453

3,737

       
 

Total assets

28,019

29,156

 

Liabilities and preferred shares

(5,704)

(5,771)

 

Participating shareholders' equity

22,315

23,385

       
 

Shares outstanding (millions)

668.1

676.6

 

Book value per participating share

33.40

34.56

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