2016 Annual 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
include, 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.
2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Operating Earnings
Per Share [$] 2.69 3.40
Operating Earnings [$ millions] 1,238 1,573
2014 2015
Attributable to participating shareholders
Power Corporation of Canada 2016 Annual Shareholder Meeting
Net Earnings
Per Share [$] 2.77 3.86
2014 2015
Net Earnings [$ millions] 1,275 1,786
Attributable to participating shareholders
2016 Annual Shareholder Meeting
First Quarter Results
Power Corporation of Canada 2016 Annual Shareholder Meeting
First Quarter Earnings
2015 2016[$ MILLIONS] PER SHARE [$] [$ MILLIONS] PER SHARE [$]
Operating Earnings 349 0.76 191 0.41
Attributable to participating shareholders
Power Corporation of Canada 2016 Annual Shareholder Meeting
First Quarter Earnings
2015 2016[$ MILLIONS] PER SHARE [$] [$ MILLIONS] PER SHARE [$]
Net Earnings 354 0.77 48 0.10
Attributable to participating shareholders
2016 Annual Shareholder Meeting
First Quarter Results
2016 Annual Shareholder Meeting
Quarterly Dividend
Power Corporation of Canada 2016 Annual Shareholder Meeting
Quarterly Dividend
$0.3350 per participating share
an increase of 7.6%
2016 Annual Shareholder Meeting
Group Companies’ Results
2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Earnings
2014 2015[$ MILLIONS] PER SHARE [$] [$ MILLIONS] PER SHARE [$]
Operating earnings 2,105 2.96 2,241 3.14
Attributable to common shareholders
Power Corporation of Canada 2016 Annual Shareholder Meeting
Dividends
2014
$1.40 per share
2015
$1.49 per share
2016
$1.57 per share (annualized)
Power Corporation of Canada 2016 Annual Shareholder Meeting
Return on Equity —Operating Earnings
14.3%
2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Earnings
Operating Earnings 2,546 2,762
[$ MILLIONS] 2014 2015
Attributable to common shareholders
Power Corporation of Canada 2016 Annual Shareholder Meeting
Paul A. Mahon President and Chief Executive Officer
Power Corporation of Canada 2016 Annual Shareholder Meeting
1 in 3 Canadians
more than
12 million people
Power Corporation of Canada 2016 Annual Shareholder Meeting
125 years 142 years 169 years
Canada
Power Corporation of Canada 2016 Annual Shareholder Meeting
Robert L. Reynolds President and Chief Executive OfficerGreat-West Lifeco U.S. Inc.
United States
Power Corporation of Canada 2016 Annual Shareholder Meeting
United States
Power Corporation of Canada 2016 Annual Shareholder Meeting
Edmund F. Murphy III President Empower Retirement
United States
Power Corporation of Canada 2016 Annual Shareholder Meeting
United States
■ Over 8 million people
■ 2nd-largest retirement services provider
■ Retirement Leader of the Year
Power Corporation of Canada 2016 Annual Shareholder Meeting
United States
Power Corporation of Canada 2016 Annual Shareholder Meeting
Europe
Power Corporation of Canada 2016 Annual Shareholder Meeting
Europe
Power Corporation of Canada 2016 Annual Shareholder Meeting
Europe
2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Operating Earnings 826 796
Earnings
[$ MILLIONS] 2014 2015
Available to common shareholders
Power Corporation of Canada 2016 Annual Shareholder Meeting
Total AssetsUnder Management
$134 billion at December 31, 2015
Power Corporation of Canada 2016 Annual Shareholder Meeting
Murray J. Taylor
Power Corporation of Canada 2016 Annual Shareholder Meeting
Jeffrey R. Carney President and Chief Executive OfficerIGM Financial
President and Chief Executive Officer Investors Group
Power Corporation of Canada 2016 Annual Shareholder Meeting
Barry McInerney President and Chief Executive OfficerMackenzie Financial
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
114 region offices
5,320 consultants
1 million clients
Power Corporation of Canada 2016 Annual Shareholder Meeting
Mutual Fund Assets
$74.9 billion at December 31, 2015
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
■ 28 new mutual funds launched since 2013
■ $1.3 billion in net flows
Innovative and High Quality Products
An exclusive selection of products developed to preserve and cultivate wealth. These institutional-style investment pools offer a wide range of
investment options that include capital preservation, balance and growth.All designed to give an attractive combination of risk and return.
Mackenzie Private Wealth PoolsIntroducing
Private Wealth Solutions
Mackenzie Private Wealth Pools
Private Wealth PoolsPrefered Pricing Private Wealth Counsel
Commissions, trailing commissions, management fees and expenses all may be associated with pool investments. Please read the prospectus before investing. Pools are not guaranteed, their values change frequently and past performance may not be repeated.
mackenzieinvestments.com/private-wealth
An exclusive selection of products developed to preserve and cultivate wealth. These institutional-style investment pools offer a wide range of
investment options that include capital preservation, balance and growth.All designed to give an attractive combination of risk and return.
Mackenzie Private Wealth PoolsIntroducing
Private Wealth Solutions
Mackenzie Private Wealth Pools
Private Wealth PoolsPrefered Pricing Private Wealth Counsel
Commissions, trailing commissions, management fees and expenses all may be associated with pool investments. Please read the prospectus before investing. Pools are not guaranteed, their values change frequently and past performance may not be repeated.
mackenzieinvestments.com/private-wealth
2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Arnaud Vial Managing Director of Pargesa
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Earnings
2015 Operating Earnings SF308 C$407
[IN MILLIONS]
2016 Annual Shareholder Meeting
Investment Activities
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard China
Sagard Europe
Sagard Capital
Sagard Investment Funds
2016 Annual Shareholder Meeting
Investment Activities
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
■ Mid-sized private companies
■ Funding: $551 million
■ Distributions: $537 million
■ Fair value: $257 million
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
■ Mid-cap public companies
■ Funding: $414 million
■ Distributions: $45 million
■ Fair value: $951 million
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
Sagard China
Power Corporation of Canada 2016 Annual Shareholder Meeting
Sagard Investment Funds
Sagard China
■ Chinese and Hong Kong stock markets
■ Funding: $296 million
■ Distributions: $17 million
■ Fair value: $666 million
Power Corporation of Canada 2016 Annual Shareholder Meeting
Investment Activities
Third-Party Private Equityand Hedge Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
Investment Activities
■ Funding: $1,005 million
■ Distributions: $1,664 million
■ Fair value: $494 million
Third-Party Private Equityand Hedge Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
$740 million over the past 5 years
Income from Investments
[$ M
ILL
ION
S]
Quarterly average of $37 million
-50
0
50
100
150
Q1-11 Q1-12 Q1-13 Q1-14 Q1-15
Power Corporation of Canada 2016 Annual Shareholder Meeting
2010 2011 2012 2013 2014 2015
[$ MILLIONS]
1,048 1,2021,428
1,730
2,368
1,033
Fair Value of Sagard and Third Party Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
■ Power Corporation holds 10%
■ Leader in the Chinese asset management sector
■ 53 mutual funds
■ AUM US$148 billion
2016 Annual Shareholder Meeting
Power Energy Corporation
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Energy Corporation
Power Corporation of Canada 2016 Annual Shareholder Meeting
2016 Annual Shareholder Meeting
Communications
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
■ Younger readership
■ High levels of engagement
■ Readership increased 30% since January 2016
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
260,000 readers every weekday
Power Corporation of Canada 2016 Annual Shareholder Meeting
82% of La Presse’s advertising revenues
Communications
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
Power Corporation of Canada 2016 Annual Shareholder Meeting
Communications
2016 Annual Shareholder Meeting
Corporate Social Responsibility
Power Corporation of Canada 2016 Annual Shareholder Meeting
Corporate Social Responsibility
■ UNGC membership and first Communication on Progress
■ New website: PowerCorporationCSR.com
■ 2015 CDP response and recognition
■ Supplier Code of ConductWE SUPPORT
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
Power Corporation of Canada 2016 Annual Shareholder Meeting
2016 Annual Shareholder Meeting
Value Creation
Power Corporation of Canada 2016 Annual Shareholder Meeting
Share Price
[$]
2010 2011 2012 2013 2014 2015 Yesterday
27.67
29.02
28.94
Power Corporation of Canada 2016 Annual Shareholder Meeting
5-Year Growth
Operating Earnings per Share
+10.2% Compounded Annually
Power Corporation of Canada 2016 Annual Shareholder Meeting
Total Assets [$ billions] 248 423 71%
Book Value per Share [$] 18.85 28.19 50%
Operating EPS – Compound Annual Growth Rate +10.2%
5-Year Growth
Operating Earnings per Share [$] 2.09 3.40 63%
2010 2015 Increase
Power Corporation of Canada 2016 Annual Shareholder Meeting
2010 2011 2012 2013 2014 2015
[$ MILLIONS]
1,048 1,2021,428
1,730
2,368
1,033
Fair Value of Sagard and Third Party Funds
Power Corporation of Canada 2016 Annual Shareholder Meeting
$740 million$541 million
0
100
200
300
400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Realized Earnings
[$ M
ILL
ION
S]
Total of $1.3 billion over the last 10 years Unrealized gains of $741 million
Power Corporation of Canada 2016 Annual Shareholder Meeting
2016 Annual Shareholder Meeting
Value Creation
2016 Annual Shareholder Meeting