Adjusted Net Asset Value

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

 

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



September 30, 2023



December 31, 2022

Publicly
Traded
Operating
Companies

Lifeco(1)   

24,694

19,414

IGM

5,096

5,592

GBL(2) 

2,227

2,388

 

32,017

27,394

       

Alternative
Asset Investment
Platforms
(3)

Sagard

1,244

977

Power Sustainable 

1,370

1,478

   

2,614

2,455

       

Other

ChinaAMC(1)    

1,150

Standalone businesses(4)

863

829

Other assets and investments

435

559

Cash and cash equivalents

1,475

1,277

   

2,773

3,815

       
 

Total assets, at fair value

37,404

33,664

 

Liabilities and preferred shares(5)(6)

(5,603)

(5,701)

 

Adjusted net asset value(7)

31,801

27,963

       
 

Shares outstanding (in millions)

658.9

667.1

 

Adjusted net asset value per share(7)

48.26

41.91


(1) On January 12, 2023, the Corporation and IGM completed a transaction in which the interest in ChinaAMC was combined under IGM. In a separate agreement, IGM sold approximately 15.2 million common shares of Lifeco, representing a 1.6% interest in Lifeco, to Power Financial.
(2) The Corporation’s share of GBL’s reported net asset value was $3.6 billion (€2.5 billion) at September 30, 2023 ($3.8 billion (€2.6 billion) at December 31, 2022).
(3) The alternative asset investment platforms include the management companies of the investment platforms as well as the investments held by the Corporation within each of the platforms (proprietary capital). The management company of Sagard is presented at its fair value at September 30, 2023 (carrying value at December 31, 2022). The management company of Power Sustainable is presented at its carrying value.
(4) An additional deferred tax liability of $11 million has been included in the adjusted net asset value at September 30, 2023 ($13 million at December 31, 2022) 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.
(5) 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.
(6) At December 31, 2022, an additional deferred tax liability of $37 million was included in the adjusted net asset value related to the investment in ChinaAMC at fair value.

(7) 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 section “Non-IFRS Financial Measures” and specifically the sub-section entitled “Adjusted Net Asset Value” included in the section entitled “Reconciliations of IFRS and Non-IFRS Financial Measures” of Part A of the Corporation’s most recent Management’s Discussion and Analysis, located under the Corporation’s profile on SEDAR+ at www.sedarplus.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 92.3% of the total assets at fair value at September 30, 2023 (88.7% at December 31, 2022).

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 calculated as the total assets of the combined Power Corporation and Power Financial holding company, 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, 2023



December 31, 2022(1)

Publicly
Traded
Operating
Companies

Lifeco

15,361

14,579

IGM

3,570

3,607

GBL 

3,499

3,314

 

22,430

21,500

       

Alternative
Asset Investment
Platforms

Sagard 

823

714

Power Sustainable

1,101

1,134

   

1,924

1,848

       

Other

ChinaAMC

783

Standalone businesses

687

678

Other assets and investments 

435

504

Cash and cash equivalents

1,475

1,277

   

2,597

3,242

       
 

Total assets, holding company

26,951

26,590

 

Liabilities and preferred shares, holding company

(5,603)

(5,664)

 

Participating shareholders’ equity

21,348

20,926

       
 

Shares outstanding (in millions)

658.9

667.1

 

Book value per participating share

32.40

31.37


(1) Comparative periods have been restated subsequent to the adoption of IFRS 17, Insurance Contracts and IFRS 9, Financial Instruments on January 1, 2023. Refer to the section “Transition to IFRS 17 and IFRS 9” included in the section “Overview” of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2023, located under the Corporation’s profile on SEDAR+ at www.sedarplus.com.

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