2015 annual shareholder meeting€¦ · 15/05/2015 · current conditions and expected future...

2 0 1 5Annual Shareholder

Meeting

In the course of today’s meeting, officers of the Corporation may make, in their remarks or in response to questions, and the accompanying materials may contain, statements containing forward-looking information. Certain statements, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation’s current expectations, or with respect to disclosure regarding the Corporation’s public subsidiaries, reflect such subsidiaries’ disclosed current expectations. Forward-looking statements are provided for the purposes of assisting the listener/reader in understanding the Corporation’s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management’s current expectations and plans relating to the future and the listener/reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation’s and its subsidiaries’ control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, business competition, operational and reputational risks,

technological change, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Corporation’s and its subsidiaries’ ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Corporation’s and its subsidiaries’ success in anticipating and managing the foregoing factors.

The listener/reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Corporation’s business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent Management’s Discussion and Analysis and its most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available at www.sedar.com.

Certain financial terms which may be included in statements today or in the accompanying materials, such as operating earnings, are non-IFRS financial measures that do not have a standard meaning and may not be comparable to similar measures used by other entities. Please refer to the Corporation’s annual and most recent interim Management’s Discussion and Analysis for more information, including how such measures are defined, an explanation of their purpose and a reconciliation of the non-IFRS measures to the corresponding IFRS measures, where comparable IFRS measures exist.

http://www.sedar.com

http://www.sedar.com


Meeting

2013 2014

Operating earnings attributable to participating shareholders ($ million)

959 1,238

Per shareattributable to participating shareholders ($)

2.08 2.69

Operating earnings

Power Corporation of Canada > 2015 Annual Shareholder Meeting

2013 2014

Net earnings attributable to participating shareholders ($ million)

977 1,275

Per shareattributable to participating shareholders ($)

2.12 2.77

Net earnings



> Highest earnings in company’s history> First dividend increase since financial crisis> Investing heavily to serve clients> Successful integration of Irish Life> Acquisition of J.P. Morgan’s U.S. retirement business

Highlights


> Assets under management: $709 billion

> Assets under administration: $1.2 trillion

> 30 million clients


Strategy phases

2014

J.P. MorganRetirement Plan Services

Acquisition-led1995-2007

Organic growth2013-2014

Financial crisis2008-2012

1997

$2.9B

2003

$7.1B

2001

$3.9B

2007

US$3.9B

2013

$1.8B


Net earnings(attributable to common shareholders)

20-year period

$291 million

$2.1 billion

1995 2014


Market Capitalization 20-year period

$2.4 billion

$25.8 billion

December 31, 1994 December 31, 2014

+$11.7 billion of dividends

($ million) 2013 2014

Operating earnings attributable to common shareholders

1,708 2,105

Net earnings attributable to common shareholders

1,896 2,136

Earnings



Quarterly dividend

$0.35 $0.3725

2014 2015

6.4%


15.1%

Return on equity —operating earnings

Earnings


($ million) 2013 2014

Operating earnings attributable to common shareholders

2,052 2,546


Paul A. Mahon President and Chief Executive Officer


J. Dave Johnston President and Chief Operating OfficerCanada

Canada


Canada

1 in 3Canadians

more than

12 millionpeople


Canada

124 years 141 years 168 years


Europe


Arshil Jamal President and Chief Operating OfficerEurope and Reinsurance

Europe


Europe


Robert L. Reynolds President and Chief Executive OfficerGreat-West Lifeco U.S. Inc.

United States


United States

> Over 7 million participants

> US$415 billion in plan assets

> 2nd largest in retirement services


United States


United States

($ million) 2013 2014

Operating earnings available to common shareholders

764 826

Earnings



Total assets under management

$142 billion at December 31, 2014


Murray J. Taylor President and Chief Executive OfficerInvestors GroupCo-President and Chief Executive OfficerIGM Financial


110region offices

5,145consultants

1 millionclients


($ billion) 2013 2014

Assets 68.3 73.5

Gross sales 6.7 7.5

Mutual funds


Jeffrey R. Carney President and Chief Executive OfficerMackenzie FinancialCo-President and Chief Executive OfficerIGM Financial


($ billion) 2013 2014

Gross sales 6.7 7.1

Mutual funds


Arnaud Vial Managing Director of Pargesa


Paul G. Desmaraisand Albert Frère


Earnings

(SF million) 2013 2014

Operating earnings 251 339

Contribution to Power Financial (in millions of Canadian $)

76 112


Investment activities


Sagard Investment Funds

Sagard China

Sagard Europe

Sagard Capital


($ million, at March 31, 2015) Investments Cash returns Fair value

Sagard Europe 482 475 198

Sagard Capital 389 25 763

Sagard China 151 17 495

1,022 517 1,456

Sagard Funds

1,973

Sagard China


Other investments in China



> Power Corporation holds 10%

> Leader in the Chinese asset management sector

> 44 mutual funds, AUM $98 billion 2011

Earnings (C$ million)

2012 2013 2014

215

163

95102


Power Energy Corporation


Investment activities


Communications


Communications

downloaded to nearly 500 new tablets every day


Communications

450,000readers every week


Communications

> 1,300 advertisers

> 65% of readers are adults aged 25 to 54


Communications


Corporate social responsibility


Ray McFeetors


Claude Généreux Executive Vice-President


First quarter results


First quarter earnings

2014 2015 ($ million) per share ($) ($ million) per share ($)

Operating earnings attributable to participating shareholders

224 0.49 349 0.76

Net earnings attributable to participating shareholders

242 0.53 354 0.77

55%


Quarterly dividend


Quarterly dividend

$0.31125per participating share

an increase of 7.3%


Meeting

2015 annual shareholder meeting€¦ · 15/05/2015 · current conditions and expected future...

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