Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms.
Power Corporation is listed on the Toronto Stock Exchange
(TSX: POW; POW.PR.E).
Highlights
Q3 2022 Key Metrics
$20.8billion
Market capitalization
$39.38
Adjusted net asset value per share(1)
6.4%
Dividend yield(2)
$33.40
Book value per participating share(3)
2021 Annual Financial Highlights
$2.9billion
Net earnings(4)
46% YoY
$3.2billion
Adjusted net earnings(4)(5)
62% YoY
$4.31
Net earnings per share(4)
40% YoY
$4.77
Adjusted net earnings per share(4)(5)
55% YoY
$1.8375
Dividends declared per share(4)
$2.5trillion
Consolidated assets and assets under administration(5)
$662billion
Consolidated assets
Power and its group companies
Investing in our Communities
Communities
$45
million
in charitable contributions
Approximately
2,000
community organizations supported across Canada
$4.2
billion
in goods and services, and taxes paid to various levels of government
- Adjusted net asset value per share is a non-IFRS ratio. Non-IFRS ratios do not have a standard meaning and may not be comparable to similar measures used by other entities. For a definition, further explanations of uses and a reconciliation of such a non-IFRS financial measure to a measure prescribed by IFRS, refer to the “Non-IFRS Financial Measures” and “Adjusted Net Asset Value” sections of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which definition, explanations and reconciliation are incorporated herein by reference.
- Dividend yield is calculated as the annualized dividend based on the dividend declared on August 5 in the third quarter of 2022 divided by the September 30, 2022 share price.
- For an explanation of the composition of book value per participating share, refer to the “Other Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
- Attributable to participating shareholders.
- Adjusted net earnings and consolidated assets and assets under administration are non-IFRS financial measures. Adjusted net earnings 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 such non-IFRS financial measures to measures prescribed by IFRS, refer to the “Non-IFRS Financial Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the financial year ended December 31, 2021, located under the Corporation’s profile on SEDAR at www.sedar.com, which definitions, explanations and reconciliations are incorporated herein by reference.
Key principles
- Long-term perspective
- Leading franchises with attractive growth profiles
- Strong governance oversight
- Prudent approach to risk management
Value creation focused on three key levers
1
OpCo organic
Organic growth strategies at our publicly traded operating companies: Great-West Lifeco, IGM & GBL
- Capitalize on significant past investments to drive higher organic earnings growth
- Enhance communications to provide greater visibility of earnings to the market
2
OpCo M&A
Deployment
and redeployment
of capital
- Augment earnings and value through acquisitions and associated synergies
- Exit businesses that do not meet return thresholds
3
Power Company Level
Actions we can take at Power Corporation
- Create value through investment platforms
- Create and realize value from standalone businesses
- Return capital to shareholders
- Enhance communications to allow the market to measure value creation
Publicly Traded Operating Companies
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses operating in Canada, the United States and Europe.
Q3 2022 Key Metrics
$27.8
billion
Market capitalization(1)
$2.4
trillion
Total assets under administration(2)
$673
billion
Consolidated assets
2021 Annual Financial Highlights
$3.1
billion
Net earnings(3)
$3.3
billion
Base earnings(3)(4)
14.0%
Return on equity(3)(5)
$47.3
billion
net policyholder benefits, dividends and experience refunds paid to customers
33
million+
customer relationships
215,000
advisor relationships
28,000+
employees
2021 Value Creation Highlights
- Reported record net earnings of $3.1 billion in 2021 with strong underlying business performance across segments
- Made focused investments to drive organic growth across Great-West Lifeco’s businesses
- Strengthened market leadership positions through strategic and disciplined acquisition and integration efforts
- Maintained risk and expense discipline to deliver sustainable, long-term shareholder value creation
- Committed to achieving net zero greenhouse gas emissions by 2050
Leading
Franchises
- For an explanation of the composition of market capitalization, refer to the “Other Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
- Assets under administration is identified as a non-GAAP financial measure by Lifeco. Non-GAAP financial measures do not have a standard meaning and may not be comparable to similar measures used by other entities. For a definition, further explanations of uses and a reconciliation of such a non-GAAP financial measure to a measure prescribed by GAAP, refer to the “Non-GAAP Financial Measures and Ratios” section of Part B of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which definition, explanations and reconciliation are incorporated herein by reference.
- Attributable to common shareholders.
- Base earnings is identified as a non-GAAP financial measure by Lifeco. Non-GAAP financial measures do not have a standard meaning and may not be comparable to similar measures used by other entities. For a definition, further explanations of uses and a reconciliation of such a non-GAAP financial measure to a measure prescribed by GAAP, refer to the “Non-GAAP Financial Measures and Ratios” section of Part B of the Corporation’s Management’s Discussion and Analysis for the financial year ended December 31, 2021, located under the Corporation’s profile on SEDAR at www.sedar.com, which definition, explanations and reconciliation are incorporated herein by reference.
- For an explanation of the composition of return on equity reported by Lifeco, refer to the “Glossary” section of Part B of the Corporation’s Management’s Discussion and Analysis for the financial year ended December 31, 2021, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
IGM Financial is a leading diversified wealth and asset management company providing a broad range of financial planning and investment management services to help more than two million Canadians meet their financial goals.
Q3 2022 Key Metrics
$8.2
billion
Market capitalization
$238.1
billion
Total assets under management and advisement(1)
2021 Annual Financial Highlights
$979
million
Net earnings(2)
$971
million
Adjusted net earnings(2)(3)
16.5%
Return on equity(2)
1million+
IG Wealth Management clients
30,000+
external advisors serving more than 1 million Mackenzie clients
198,000
Investment Planning Counsel clients
3,800+
employees across the IGM family of companies
2021 Value Creation Highlights
- Reported record-high annual net earnings of $979 million, up 28% year over year
- Reported record-high assets under advisement, and gross and net client inflows from wealth management activities
- Reached record-high total assets under management, with record-high annual investment fund net sales and annual mutual fund gross sales from the asset management segment
- Benefitted from increased earnings contributions from strategic investments, which continued to help enhance growth profile and extend capabilities
- Enhanced climate commitments to include carbon neutral operations by 2022 and setting interim targets to transition investments towards net zero by 2050
Operating Companies
Strategic Investments
(4)
- For an explanation of the composition of assets under management and advisement of IGM, refer to the “Other Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
- Available to common shareholders.
- Adjusted net earnings is identified as a non-IFRS financial measure by IGM. Non-IFRS financial measures do not have a standard meaning and may not be comparable to similar measures used by other entities. For a definition, further explanations of uses and a reconciliation of such a non-IFRS financial measure to a measure prescribed by IFRS, refer to the “Non-IFRS Financial Measures and Additional IFRS Measures” section of Part C of the Corporation’s Management’s Discussion and Analysis for the financial year ended December 31, 2021, located under the Corporation’s profile on SEDAR at www.sedar.com, which definition, explanations and reconciliation are incorporated herein by reference.
- IGM and Power Corporation each hold an interest of 13.9% in ChinaAMC. ChinaAMC’s total assets under management, excluding subsidiary assets under management, were RMB¥1,733 billion (C$337 billion) at September 30, 2022. On January 5, 2022, Power Corporation and IGM announced an agreement in which IGM will acquire Power Corporation’s 13.9% interest held in ChinaAMC.
Groupe Bruxelles Lambert (GBL) is a leading investor in Europe, focused on long-term value creation with a diversified high-quality portfolio composed of global companies, public and private, that are leaders in their sector.
Q3 2022 Statistics
€11.0
billion
Market capitalization
Net asset value(1)
GBL Total:
€17.2
billion
Power’s stake:
€2.6
billion
Total investment by Power Financial since inception:
$574
million
Dividends received by Power Financial since 1987:
$1.6
billion
30+years
of formal partnership between the Desmarais and Frère families
2021 Value Creation Highlights
- Pursued its asset rotation strategy, with €4.2 billion(2) in 2021, favouring private and alternative assets with attractive growth prospects and building a less replicable portfolio
- Solidified its financial position to support its strategy
- Started transformation into a 3rd party asset manager with the announced acquisitions of L’Etoile Properties, Malakoff Humanis and Acofi
- Strengthened its ESG integration and supported portfolio companies in the reinforcement of their climate commitments
- Developed climate targets which were approved by the Science Based Targets initiative in January 2022
Portfolio(1)
€19.6Billion
as at September 30, 2022
Listed
investments (3)(4)
63.8% of portfolio
19.2% (7.7%)
16.3% (19.1%)
8.3% (7.1%)
7.4% (54.6%)
6.0% (15.9%)
2.9% (2.1%)
1.9% (6.4%)
1.2% (3.5%)
0.5% (20.0%)
Other
0.1%
Private
Investments (3)(4)
22.6% of portfolio
8.7% (61.8%)
5.1% (99.5%)
3.7% (89.4%)
2.2% (50.0%)(5)
1.4% (23.0%)
1.4% (16.2%)
Alternative
Investments (3)
13.6% of portfolio
- For an explanation of the composition of net asset value reported by GBL, representing the fair value of its investment portfolio, its gross cash and treasury shares, less its gross debt, refer to the “Other Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
- Excluding share buybacks.
- Percentage of portfolio value shown as at September 30, 2022.
- Ownership in parentheses.
- GBL’s ownership in Canyon, excluding shares held by Sienna (additional indirect ownership of 1.37% as of September 30, 2022).
Alternative asset investment platforms
Power Corporation is creating alternative asset management businesses, building upon the investment capabilities that have been created over many years in several high-growth asset classes.
Sagard is a multi-strategy alternative asset manager with professionals principally located in Canada, the U.S. and Europe.
Asset classes:
- Private credit
- Healthcare royalties
- Venture capital
- Private equity
- Real estate
US$12.7
billion
Assets under management(1)(2)(3)
93%
of assets under management from 3rd-party and associates
- As at September 30, 2022.
- Includes unfunded commitments and excludes standalone businesses and assets under management of Sagard’s wealth management business.
- For an explanation of the composition of assets under management of alternative asset investment platforms, refer to the “Other Measures” section of Part A of the Corporation’s Management’s Discussion and Analysis for the interim financial period ended September 30, 2022, located under the Corporation’s profile on SEDAR at www.sedar.com, which explanation is incorporated herein by reference.
Power Sustainable is a pure-play sustainable investment manager with offices in Canada, China, and the U.S.
Platforms:
-
Power Sustainable China:
Invests in mainland China’s public equity markets. -
Power Sustainable Energy Infrastructure:
Invests in the development, construction, financing, and operation of renewable energy infrastructure assets across North America. -
Power Sustainable Lios:
Invests in growth oriented, mid-market companies across the food value chain in North America.
$2.6
billion
Assets under management(1)(2)
44%
of assets under management from 3rd-party and associates
- As at September 30, 2022.
- Includes unfunded commitments and excludes standalone businesses.