Readers are referred to
the sections Non-IFRS Financial Measures and Forward-Looking
Statements later in this release. All figures are expressed in
Canadian dollars unless otherwise noted.
|
MONTRÉAL, Nov. 13,
2023 /CNW/ - Power Corporation of Canada (Power Corporation or the Corporation)
(TSX: POW) (TSX: POW.PR.E) today reported earnings results for the
three and nine months ended September 30, 2023.
Power Corporation
Consolidated results for the
period ended September 30, 2023
HIGHLIGHTS [1]
Power Corporation
- Net earnings from continuing operations [2] were
$997 million or $1.50 per share [3] for the third
quarter, compared with $642 million
or
$0.96 per share in the third quarter
of 2022.
Adjusted net earnings from continuing operations [2][4]
were $1,007 million or $1.52 per share, compared with $520 million or $0.78 per share in the third quarter of
2022.
- Adjusted net asset value per share [4] was
$48.26 at September 30, 2023, compared with $41.91 at December 31,
2022, an increase of 15.2%. The Corporation's book value per
participating share [5] was $32.40 at September 30,
2023, compared with $31.37 at
December 31, 2022, an increase of
3.3%.
- In 2023, the Corporation purchased for cancellation 9.3 million
subordinate voting shares for a total of $340 million at September
30, 2023. Subsequent to quarter-end, the Corporation has
purchased an additional 3.3 million subordinate voting shares for a
total of $112 million.
- Contribution to net earnings from continuing operations from
the publicly traded operating companies was $1,086 million in the third quarter, compared
with $755 million in the third
quarter of 2022.
Contribution to adjusted net earnings from continuing operations
from the publicly traded operating companies was $1,096 million in the third quarter, compared
with $633 million in the third
quarter of 2022.
Great-West Lifeco Inc. (Lifeco)
- Third quarter net earnings from continuing operations were
$936 million, compared with
$986 million in the third quarter of
2022.
Adjusted net earnings from continuing operations [6]
were $950 million, compared with
$809 million in the third quarter of
2022.
- Lifeco remains on track to deliver value from its previously
announced strategic transactions [7] which will add new
capabilities and drive scale.
IGM Financial Inc. (IGM or IGM
Financial)
- Third quarter net earnings were $209.8
million, compared with $216.1
million in the third quarter of 2022.
- Assets under management and advisement including Strategic
Investments [5] were $400.0
billion at September 30, 2023,
compared with $402.8 billion at
June 30, 2023 and $302.1 billion at September 30, 2022.
Groupe Bruxelles Lambert (GBL)
- GBL reported a net asset value [5] of €16.0 billion
at September 30, 2023, or €109.19 per
share, compared with €17.8 billion or €116.18 per share at
December 31, 2022.
- In the third quarter of 2023, GBL completed €310 million of
share buybacks and a total of €589 million of share buybacks in the
nine months ended September 30, 2023.
GBL's board of directors approved an additional buyback envelope of
€500 million on November 2,
2023.
Sagard Holdings Inc. (Sagard) and Power Sustainable Capital Inc.
(Power Sustainable)
- In the third quarter of 2023, Sagard Holdings Management Inc.
(SHMI) completed the previously announced strategic partnerships
with Abu Dhabi Developmental Holding Co. (ADQ), and Bank of
Montreal. SHMI also expanded its
existing partnership with Lifeco.
- The alternative asset investment platforms raised $1.2 billion in new commitments in the third
quarter, including:
- Sagard's initial close of
Series II of Sagard Healthcare Partners, raising commitments of up
to US$300 million;
- Power Sustainable's announcement of a US$600 million commitment to its Global
High-Yield Infrastructure Credit strategy.
|
|
[1]
|
Comparative periods
have been restated subsequent to the adoption of IFRS 17 and IFRS 9
on January 1, 2023. See the Basis of Presentation and Non-IFRS
Financial Measures sections later in this news release.
|
[2]
|
Attributable to
participating shareholders.
|
[3]
|
All per share amounts
are per participating share of the Corporation.
|
[4]
|
Adjusted net earnings
from continuing operations and adjusted net asset value are
non-IFRS financial measures. Adjusted net earnings from continuing
operations per share and adjusted net asset value per share are
non-IFRS ratios. See the Non-IFRS Financial Measures section later
in this news release.
|
[5]
|
See the Other Measures
section later in this news release.
|
[6]
|
Defined as "base
earnings" by Lifeco, a non-IFRS financial measure; see the Non-IFRS
Financial Measures section later in this news release.
|
[7]
|
Including the
acquisition of the Prudential full-service retirement business in
2022, the recent acquisition of Value Partners Group Inc., and the
completion of the announced transactions to acquire Investment
Planning Counsel Inc. and to dispose of Putnam U.S. Holdings I, LLC
(Putnam).
|
THIRD QUARTER
Net earnings from continuing operations attributable to
participating shareholders were $997 million or $1.50 per share, compared with
$642 million or $0.96 per
share in 2022.
Adjusted net earnings from continuing operations attributable to
participating shareholders [1] were $1,007 million or $1.52 per share, compared with $520 million
or $0.78 per share in 2022.
Net earnings attributable to participating shareholders were
$975 million or $1.47 per share, compared with $643 million or $0.96 per share in 2022.
Contributions to Power Corporation's
Earnings from Continuing Operations
(in millions of
dollars, except per share amounts)
|
Adjusted Net
Earnings
|
Net
Earnings
|
|
2023
|
2022
|
2023
|
2022
|
Lifeco
[2]
|
649
|
539
|
639
|
656
|
IGM
[2]
|
130
|
134
|
130
|
134
|
GBL
[2]
|
315
|
(36)
|
315
|
(36)
|
Effect of consolidation
[3]
|
2
|
(4)
|
2
|
1
|
Publicly traded
operating companies
|
1,096
|
633
|
1,086
|
755
|
|
|
|
|
|
Sagard and Power
Sustainable [4]
|
(11)
|
(45)
|
(11)
|
(45)
|
ChinaAMC
[5]
|
−
|
15
|
−
|
15
|
Other investments and
standalone businesses
|
34
|
14
|
34
|
14
|
|
1,119
|
617
|
1,109
|
739
|
Corporate operations
and Other [6]
|
(112)
|
(97)
|
(112)
|
(97)
|
|
1,007
|
520
|
997
|
642
|
|
|
|
|
|
Per participating
share
|
1.52
|
0.78
|
1.50
|
0.96
|
Average shares
outstanding (in millions)
|
660.4
|
668.7
|
660.4
|
668.7
|
Publicly traded operating companies: contribution to
net earnings from continuing operations was $1,086 million and to adjusted net earnings
from continuing operations was $1,096 million, representing an increase of
43.8% and 73.1%, respectively, from the third quarter of 2022:
Lifeco: contribution to net and
adjusted net earnings from continuing operations decreased by 2.6%
and increased by 20.4%, respectively. The results of Putnam have been classified as discontinued
operations, representing a negative contribution to net earnings of
$22 million.
IGM: contribution to net and
adjusted net earnings decreased by 3.0%.
GBL: contribution to net earnings of
$315 million. In the third quarter, Webhelp Group (Webhelp)
completed the previously announced combination transaction with
Concentrix Corporation. Results include the Corporation's share of
a gain on deconsolidation of Webhelp of $323 million, which
includes the reversal of the put right liability of the
non-controlling interests in Webhelp. GBL's liability to
non-controlling interests was extinguished without any cash impact
for GBL.
Sagard and Power
Sustainable: net earnings include a negative contribution of
$7 million from Power Sustainable and a negative contribution
of $4 million from Sagard.
Adjustments in the third quarter of 2023, excluded from adjusted
net earnings from continuing operations, were a negative net impact
to earnings of $10 million or $0.02 per share, related to the Corporation's
share of Lifeco's adjustments. In the third quarter of 2022,
Adjustments were a positive net impact to earnings of
$122 million or $0.18 per
share, mainly related to the Corporation's share of Lifeco's
adjustments.
|
|
[1]
|
A non-IFRS financial
measure; see the Non-IFRS Financial Measures section later in this
news release.
|
[2]
|
As reported by Lifeco,
IGM and GBL.
|
[3]
|
Refer to the detailed
table in the Contribution to Net Earnings and Adjusted Net Earnings
section of the Corporation's most recent Management's Discussion
and Analysis (MD&A) for additional
information.
|
[4]
|
Consists of earnings
(losses) from the alternative asset investment platforms, including
controlled and consolidated subsidiaries.
|
[5]
|
China Asset Management
Co., Ltd. (ChinaAMC).
|
[6]
|
Includes operating and
other expenses, dividends on non-participating shares of the
Corporation and Power Financial Corporation (Power Financial)
corporate operations; refer to the Earnings Summary
below.
|
NINE MONTHS
Net earnings from continuing operations attributable to
participating shareholders were $1,873 million or $2.82 per share, compared with $2,110 million or $3.14 per share in 2022.
Adjusted net earnings from continuing operations attributable to
participating shareholders [1] were $2,380 million or $3.58 per share, compared with $1,609 million or $2.40 per share in 2022.
Net earnings attributable to participating shareholders were
$1,789 million or $2.69 per share, compared with $2,106 million or $3.13 per share in 2022.
Contributions to Power Corporation's
Earnings from Continuing Operations
(in millions of
dollars, except per share amounts)
|
Adjusted Net
Earnings
|
Net
Earnings
|
|
2023
|
2022
|
2023
|
2022
|
Lifeco
[2]
|
1,838
|
1,614
|
1,444
|
2,097
|
IGM
[2]
|
386
|
398
|
453
|
398
|
GBL
[2]
|
424
|
(109)
|
424
|
(109)
|
Effect of consolidation
[3]
|
(16)
|
58
|
(142)
|
86
|
Publicly traded
operating companies
|
2,632
|
1,961
|
2,179
|
2,472
|
|
|
|
|
|
Sagard and Power
Sustainable [4]
|
(96)
|
(182)
|
(96)
|
(192)
|
ChinaAMC
|
2
|
43
|
(52)
|
43
|
Other investments and
standalone businesses
|
160
|
62
|
160
|
62
|
|
2,698
|
1,884
|
2,191
|
2,385
|
Corporate operations
and Other [5]
|
(318)
|
(275)
|
(318)
|
(275)
|
|
2,380
|
1,609
|
1,873
|
2,110
|
|
|
|
|
|
Per participating
share
|
3.58
|
2.40
|
2.82
|
3.14
|
Average shares
outstanding (in millions)
|
664.3
|
671.8
|
664.3
|
671.8
|
[1]
|
A non-IFRS financial
measure; see the Non-IFRS Financial Measures section later in this
news release.
|
[2]
|
As reported by Lifeco,
IGM and GBL.
|
[3]
|
Refer to the detailed
table in the Contribution to Net Earnings and Adjusted Net Earnings
section of the Corporation's most recent MD&A for additional
information.
|
[4]
|
Consists of earnings
(losses) from the alternative asset investment platforms, including
controlled and consolidated subsidiaries.
|
[5]
|
Includes operating and
other expenses, dividends on non-participating shares of the
Corporation and Power Financial corporate operations; refer to the
Earnings Summary below.
|
Great-West Lifeco, IGM Financial and Groupe Bruxelles
Lambert
Results for the quarter ended September 30, 2023
The information below is derived from Lifeco and IGM's
third quarter MD&As, as prepared and disclosed by the
respective companies in accordance with applicable securities
legislation, and which are also available either directly from
SEDAR+ (www.sedarplus.com) or from their websites,
www.greatwestlifeco.com and www.igmfinancial.com. The information
below related to GBL is derived from publicly disclosed
information, as issued by GBL in its third quarter press release
and its half-year report at June 30,
2023. Further information on GBL's results is available on
its website at www.gbl.com.
GREAT-WEST LIFECO INC.
THIRD QUARTER
Net earnings from continuing operations attributable to common
shareholders were $936 million or $1.01 per share, compared with $986 million
or $1.06 per share in 2022.
Adjusted net earnings from continuing
operations [1] attributable to common shareholders
were $950 million or $1.02 per
share, compared with $809 million or $0.87 per share in 2022.
Net earnings attributable to common shareholders were
$905 million or $0.97 per share,
compared with $987 million or $1.06 per share in 2022.
Adjustments in the third quarter of 2023, excluded from adjusted
net earnings, were a net negative impact of $14 million,
compared with a net positive impact of $177 million in 2022.
Lifeco's adjustments consisted of:
- Negative earnings impact from assumption changes and management
actions of $106 million;
- Acquisition and divestiture costs of $3
million;
- Restructuring and integration costs of $22 million primarily in the United States and Europe segments; and
- Amortization of acquisition-related finite life intangible
assets of $36 million;
- Partially offset by market experience relative to expectations
of positive $153 million.
IGM FINANCIAL INC.
THIRD QUARTER
Net earnings available to common shareholders were $209.8 million or $0.88 per share, compared with $216.1 million or $0.91 per share in 2022.
Assets under management and advisement [2] at
September 30, 2023 were $253.4 billion, a decrease of 3.0% from
June 30, 2023 and an increase of 6.4% from the third quarter
of 2022.
GROUPE BRUXELLES
LAMBERT
THIRD QUARTER
GBL reported net earnings of €1,276 million, compared with
a net loss of €143 million in 2022. Net earnings in the third
quarter include a gain on deconsolidation of Webhelp of
approximately €1.3 billion, including the reversal of the
liability to Webhelp's minority shareholders. Since the acquisition
of Webhelp in 2019, GBL has recognized cumulative net increases in
value of the liability to Webhelp's minority shareholders of
€1.2 billion.
GBL reported a net asset value [2] of
€16,018 million at September 30, 2023, or €109.19 per
share, compared with €17,775 million or €116.18 per share at
December 31, 2022.
[1]
|
Defined as "base
earnings" by Lifeco. For additional information, please refer
to the Non-IFRS Financial Measures section later in this news
release.
|
[2]
|
See the Other Measures
section later in this news release.
|
Sagard and Power Sustainable
Results for the quarter ended September 30,
2023
Sagard and Power
Sustainable comprise the results of the Corporation's alternative
asset investment platforms, which includes income earned from asset
management and investing activities. Asset management activities
includes fee-related earnings (a non-IFRS financial measure, see
the Non-IFRS Financial Measures section later in this news
release), which is comprised of management fees less investment
platform expenses. Asset management activities also includes
carried interest and income from other management activities.
Investing activities comprises income earned on the capital
invested by the Corporation (proprietary capital) in the investment
funds managed by each platform and the share of earnings (losses)
of controlled and consolidated subsidiaries held within the
alternative asset investment platforms. For additional information,
refer to the table later in this news release.
THIRD QUARTER
Net loss of the alternative asset investment platforms was
$11 million, compared with net loss of $45 million in
2022.
The net loss of $11 million is comprised of:
- A negative contribution of $21
million from the asset management activities of Sagard and Power Sustainable;
- A positive contribution of $10
million from investing activities, including a positive
contribution of $2 million from
Sagard and $8 million from Power Sustainable.
Summary of assets under
management [1] (including unfunded
commitments):
(in billions of dollars)
|
September 30,
2023
|
|
September 30,
2022
|
|
Sagard [2]
|
19.4
|
|
17.4
|
|
Power
Sustainable
|
4.2
|
|
2.6
|
|
Total
|
23.6
|
|
20.0
|
|
Percentage of
third-party and associated companies
|
87
|
%
|
87
|
%
|
|
|
[1]
|
See the Other Measures
section later in this news release.
|
[2]
|
Includes ownership in
Wealthsimple Financial Corp. (Wealthsimple) valued at $0.9 billion
at September 30, 2023 (same as at September 30, 2022) and excludes
assets under management of Sagard's wealth management
business.
|
Other Investments and Standalone Businesses
Results for the quarter ended September
30, 2023
Other investments and standalone businesses includes the
Corporation's investments in investment and hedge funds and the
share of earnings (losses) of standalone businesses.
THIRD QUARTER
Net earnings of the other investments and standalone businesses
were $34 million, compared with net earnings of
$14 million in 2022.
STANDALONE BUSINESSES
Net earnings of the standalone businesses were $2 million, compared with net earnings of
$3 million in 2022.
At September 30, 2023, the fair
value of standalone businesses was $0.9
billion, same as at September 30,
2022.
Adjusted Net Asset Value and Participating Shareholders'
Equity
At September 30,
2023
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 (the
gross asset value) less their net debt and preferred shares. Refer
to the Non-IFRS Financial Measures section later in this news
release for a description and reconciliation.
The Corporation's adjusted net asset value per share was
$48.26 at September 30, 2023, compared with $41.91 at December 31, 2022, representing an
increase of 15.2%.
|
(in millions of
dollars, except per share amounts)
|
September 30,
2023
|
December 31,
2022
|
Variation %
|
Publicly
Traded
Operating
Companies
|
Lifeco
[1]
|
24,694
|
19,414
|
27
|
IGM
|
5,096
|
5,592
|
(9)
|
GBL
|
2,227
|
2,388
|
(7)
|
|
|
32,017
|
27,394
|
17
|
|
|
|
|
|
Alternative
Asset
Investment
Platforms
|
Sagard
[2]
|
1,244
|
977
|
27
|
Power Sustainable
[2]
|
1,370
|
1,478
|
(7)
|
|
2,614
|
2,455
|
6
|
|
|
|
|
|
Other
|
ChinaAMC
[1]
|
−
|
1,150
|
−
|
Standalone businesses
[3]
|
863
|
829
|
4
|
Other assets and
investments
|
435
|
559
|
(22)
|
Cash and cash
equivalents
|
1,475
|
1,277
|
16
|
|
|
2,773
|
3,815
|
(27)
|
|
|
|
|
|
|
Gross asset
value
|
37,404
|
33,664
|
11
|
|
Liabilities and
preferred shares
|
(5,603)
|
(5,701)
|
2
|
|
Adjusted net asset
value
|
31,801
|
27,963
|
14
|
|
|
|
|
|
|
Shares outstanding
(in millions)
|
658.9
|
667.1
|
|
|
Adjusted net asset
value per share
|
48.26
|
41.91
|
15
|
[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 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.
|
[3]
|
Includes The Lion
Electric Company (Lion), LMPG Inc. (LMPG) and Peak Achievement
Athletics Inc. (Peak).
|
Power Corporation's Ownership in Publicly Traded Operating
Companies
|
|
Shares
held [1]
(in millions)
|
Share price
|
|
Ownership [1]
(%)
|
September 30,
2023
|
December 31,
2022
|
Lifeco
|
68.1
|
635.5
|
$38.86
|
$31.30
|
IGM
|
62.1
|
147.9
|
$34.45
|
$37.80
|
GBL [2]
|
15.5
|
22.8
|
€70.56
|
€74.58
|
[1]
|
At September 30,
2023.
|
[2]
|
Held through Parjointco
SA (Parjointco), a jointly controlled corporation (50%).
|
PARTICIPATING SHAREHOLDERS' EQUITY
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.
The Corporation's book value per participating share was
$32.40 at September 30, 2023, compared with $31.37 at December 31, 2022, representing an
increase of 3.3%.
|
(in millions of
dollars, except per share amounts)
|
September 30,
2023
|
December 31,
2022
|
Variation %
|
Publicly
Traded
Operating
Companies
|
Lifeco
|
15,361
|
14,579
|
5
|
IGM
|
3,570
|
3,607
|
(1)
|
GBL
|
3,499
|
3,314
|
6
|
|
|
22,430
|
21,500
|
4
|
|
|
|
|
|
Alternative
Asset
Investment
Platforms
|
Sagard
|
823
|
714
|
15
|
Power
Sustainable
|
1,101
|
1,134
|
(3)
|
|
1,924
|
1,848
|
4
|
|
|
|
|
|
Other
|
ChinaAMC
|
−
|
783
|
−
|
Standalone businesses
[1]
|
687
|
678
|
1
|
Other assets and
investments
|
435
|
504
|
(14)
|
Cash and cash
equivalents
|
1,475
|
1,277
|
16
|
|
|
2,597
|
3,242
|
(20)
|
|
|
|
|
|
|
Total assets
|
26,951
|
26,590
|
1
|
|
Liabilities and
preferred shares
|
(5,603)
|
(5,664)
|
1
|
|
Participating
shareholders' equity
|
21,348
|
20,926
|
2
|
|
|
|
|
|
|
Shares outstanding
(in millions)
|
658.9
|
667.1
|
|
|
Book value per
participating share
|
32.40
|
31.37
|
3
|
[1]
|
Includes Lion, LMPG and
Peak.
|
Dividend on Power Corporation Participating Shares
The Board of Directors declared a quarterly dividend of
52.50 cents per share on the Participating Preferred Shares
and the Subordinate Voting Shares of the Corporation, payable
February 1, 2024 to shareholders of
record December 29, 2023.
Dividends on Power Corporation Non-Participating Preferred
Shares
The Board of Directors also declared quarterly dividends on the
Corporation's preferred shares, payable January 15, 2024 to shareholders of record
December 22, 2023:
Series
|
Stock
Symbol
|
Amount
|
|
Series
|
Stock
Symbol
|
Amount
|
Series A
|
POW.PR.A
|
35¢
|
|
Series D
|
POW.PR.D
|
31.25¢
|
Series B
|
POW.PR.B
|
33.4375¢
|
|
Series G
|
POW.PR.G
|
35¢
|
Series C
|
POW.PR.C
|
36.25¢
|
|
|
|
|
Investor Information
Access to Quarterly Results
Materials:
|
|
Quarterly Earnings Conference
Call:
|
The third quarter
earnings
news release and shareholder
report are available on the
Power Corporation website at www.powercorporation.com/en/
investors
|
|
Power Corporation will
host an earnings call and live audio webcast on Tuesday,
November 14, 2023 at 8:30 a.m. (Eastern Time). A
question-and-answer period with analysts will follow the
presentation. Shareholders, investors, and other stakeholders are
welcome to participate on a listen-only basis.
The live audio webcast
and presentation materials will be available at:
www.powercorporation.com/en/investors/events-presentations/.
To listen via
telephone, please dial 1-800-319-4610 toll-free in North America or
416-915-3239 for local calls made in the Toronto area.
A replay of the
conference call will be available from November 14, 2023 at 11:30
a.m. (Eastern Time) until March 19, 2024 by calling 1-855-669-9658
toll-free in North America, using the access code 0517#. A webcast
archive will also be available on Power Corporation's
website.
|
Investor Relations Contact:
|
|
514-286-7400
investor.relations@powercorp.com
|
|
About Power Corporation
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. To learn
more, visit www.powercorporation.com.
At September 30, 2023, Power
Corporation held the following economic interests:
100% – Power Financial
|
|
www.powerfinancial.com
|
68.1 %
|
|
Great-West
Lifeco (TSX: GWO)
|
|
www.greatwestlifeco.com
|
62.1 %
|
|
IGM Financial
(TSX: IGM)
|
|
www.igmfinancial.com
|
15.5 %
|
|
GBL [1] (Euronext:
GBLB)
|
|
www.gbl.com
|
54.2 %
|
|
Wealthsimple [2]
|
|
www.wealthsimple.com
|
|
|
Investment Platforms
|
|
|
|
|
Sagard [3]
|
|
www.sagard.com
|
|
|
Power
Sustainable
|
|
www.powersustainable.com
|
[1]
|
Held through
Parjointco, a jointly controlled corporation (50%).
|
[2]
|
Undiluted equity
interest held by Portag3 Ventures Limited Partnership (Portage
Ventures I), Power Financial and IGM, representing a fully diluted
equity interest of 42.5%.
|
[3]
|
The Corporation holds a
54.5% interest in Sagard Holdings Management Inc.
|
Earnings Summary
Contribution to Adjusted Net Earnings
and Net Earnings
(in millions of
dollars, except per share amounts)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
(restated)
|
2023
|
2022
(restated)
|
Adjusted net
earnings from continuing
operations [1]
|
|
|
|
|
Lifeco [2][3]
|
649
|
539
|
1,838
|
1,614
|
IGM [2]
|
130
|
134
|
386
|
398
|
GBL [2]
|
315
|
(36)
|
424
|
(109)
|
Effect of consolidation
[4]
|
2
|
(4)
|
(16)
|
58
|
|
1,096
|
633
|
2,632
|
1,961
|
Sagard and Power
Sustainable [5]
|
(11)
|
(45)
|
(96)
|
(182)
|
ChinaAMC
|
−
|
15
|
2
|
43
|
Other investments and
standalone businesses
|
34
|
14
|
160
|
62
|
Corporate operating and
other expenses
|
(65)
|
(50)
|
(176)
|
(135)
|
Dividends on
non-participating and perpetual preferred shares
|
(47)
|
(47)
|
(142)
|
(140)
|
Adjusted net
earnings from continuing
operations [6]
|
1,007
|
520
|
2,380
|
1,609
|
Adjustments
[3][7]
|
(10)
|
122
|
(507)
|
501
|
Net earnings from
continuing operations
|
|
|
|
|
Lifeco
[2][3]
|
639
|
656
|
1,444
|
2,097
|
IGM
[2]
|
130
|
134
|
453
|
398
|
GBL
[2]
|
315
|
(36)
|
424
|
(109)
|
Effect of consolidation
[4]
|
2
|
1
|
(142)
|
86
|
|
1,086
|
755
|
2,179
|
2,472
|
Sagard and Power
Sustainable [5]
|
(11)
|
(45)
|
(96)
|
(192)
|
ChinaAMC
|
−
|
15
|
(52)
|
43
|
Other investments and
standalone businesses
|
34
|
14
|
160
|
62
|
Corporate operating and
other expenses
|
(65)
|
(50)
|
(176)
|
(135)
|
Dividends on
non-participating and perpetual preferred shares
|
(47)
|
(47)
|
(142)
|
(140)
|
Net earnings from
continuing operations [6]
|
997
|
642
|
1,873
|
2,110
|
Net earnings (loss)
from discontinued operations – Putnam [3]
|
(22)
|
1
|
(84)
|
(4)
|
Net
earnings [6]
|
975
|
643
|
1,789
|
2,106
|
Earnings per share –
basic [6]
|
|
|
|
|
Adjusted net
earnings from continuing operations
|
1.52
|
0.78
|
3.58
|
2.40
|
Adjustments
|
(0.02)
|
0.18
|
(0.76)
|
0.74
|
Net earnings from
continuing operations
|
1.50
|
0.96
|
2.82
|
3.14
|
Net earnings (loss)
from discontinued operations – Putnam
|
(0.03)
|
−
|
(0.13)
|
(0.01)
|
Net
earnings
|
1.47
|
0.96
|
2.69
|
3.13
|
[1]
|
For a reconciliation of
Lifeco, IGM, and Sagard and Power Sustainable's non-IFRS adjusted
net earnings to their net earnings, refer to the Non-IFRS Financial
Measures, and Sagard and Power Sustainable sections
below.
|
[2]
|
As reported by Lifeco,
IGM and GBL.
|
[3]
|
Comparative results
have been restated to exclude net earnings (losses) from
discontinued operations related to Putnam.
|
[4]
|
Refer to the detailed
table in the Contribution to Net Earnings and Adjusted Net Earnings
section of the Corporation's most recent MD&A for additional
information.
|
[5]
|
Consists of earnings
(losses) of the Corporation's alternative asset investment
platforms, including investments held through Power
Financial.
|
[6]
|
Attributable to
participating shareholders.
|
[7]
|
Refer to the detailed
table of Adjustments in the Non-IFRS Financial Measures section
below.
|
Sagard and Power
Sustainable
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Adjusted net
earnings (loss)
|
|
|
|
|
Asset management
activities [1]
|
|
|
|
|
Sagard
|
(6)
|
(9)
|
(29)
|
(58)
|
Power
Sustainable
|
(15)
|
(3)
|
(32)
|
(18)
|
Investing activities
(proprietary capital)
|
|
|
|
|
Sagard
[2]
|
2
|
(5)
|
19
|
39
|
Power
Sustainable
|
|
|
|
|
China public equity
[3]
|
2
|
(24)
|
1
|
(163)
|
Energy Infrastructure
[4][5]
|
4
|
3
|
(15)
|
25
|
|
(13)
|
(38)
|
(56)
|
(175)
|
Revaluation of
non-controlling interests liabilities [5][6]
|
2
|
(7)
|
(40)
|
(7)
|
Adjusted net
earnings (loss)
|
(11)
|
(45)
|
(96)
|
(182)
|
Adjustments
[7]
|
−
|
−
|
−
|
(10)
|
Net earnings
(loss)
|
(11)
|
(45)
|
(96)
|
(192)
|
[1]
|
Includes management
fees charged by the investment platforms on proprietary capital.
Management fees paid by the Corporation are deducted from income
from investing activities.
|
[2]
|
Includes the
Corporation's share of earnings (losses) of Wealthsimple. The first
and second quarters of 2022 included a reversal of carried interest
payable of $13 million and $25 million, respectively, mainly due to
a decrease in the fair value of Wealthsimple and investments held
in Portage Ventures II in the periods. The net decrease in fair
value of the Corporation's investments, including its investments
held through Power Financial, in Portage Ventures I, Portage
Ventures II, Portage Ventures III, and Wealthsimple was $7 million
in the nine-month period ended September 30, 2023, compared with a
net decrease of $424 million in fair value in the corresponding
period in 2022.
|
[3]
|
The fair value of the
Corporation's investments was $530 million at September 30, 2023,
compared with $666 million at December 31, 2022. On adoption of
IFRS 9 on January 1, 2023, the Corporation has classified its
investments in Chinese public equities as fair value through other
comprehensive income (FVOCI), an elective classification for equity
instruments in which all fair value changes remain permanently in
equity. Going forward, the contribution from investing activities
will consist of dividend income and management and performance fee
expenses. In 2022, the Corporation recognized realized losses on
the disposal of investments in Power Sustainable China of $54
million, $70 million and $22 million in the first, second and third
quarters, respectively, and recognized $13 million in impairments
recorded in the first quarter due to declines in Chinese equity
markets.
|
[4]
|
Consists of the
Corporation's share of earnings (losses) from direct investments in
energy infrastructure and in the consolidated activities of Power
Sustainable Energy Infrastructure Partnership (PSEIP). Share of
losses in 2023 includes unrealized gains on derivative contracts
hedging energy infrastructure projects of $21 million, of which $18
million was recorded in the third quarter. The first quarter of
2023 included the Corporation's share of carried interest expense
of $9 million, which resulted from an increase in fair value of
assets held in PSEIP and operating losses mainly related to
seasonality. Share of earnings in 2022 included a gain on disposal
of a portfolio of solar assets of $17 million recognized in the
second quarter, and unrealized gains on derivative contracts
hedging energy infrastructure projects of $31 million, of which $7
million was recorded in the third quarter. As well, the first
quarter of 2022 excluded a charge of $10 million due to impairments
on direct investments in energy infrastructure assets, recorded as
an Adjustment.
|
[5]
|
Comparative information
has been restated in accordance with the current
presentation.
|
[6]
|
Consists of the
Corporation's share of the revaluation of non-controlling interests
liabilities which results from changes in fair value of assets held
in PSEIP and the share of earnings (losses) from the consolidated
activities of PSEIP which are attributable to third-party
investors. The Corporation controls and consolidates the activities
of PSEIP on a historical cost basis; however, equity interests held
by third parties have redemption features and are classified as a
financial liability, which are remeasured at their redemption
value. The first quarter of 2023 included a charge of $33 million
related to the Corporation's share of the revaluation of
non-controlling interests liabilities which mainly resulted from an
increase in fair value of assets held in PSEIP. The net asset value
of PSEIP was $1,177 million at September 30, 2023, compared with
$1,035 million at December 31, 2022.
|
[7]
|
Refer to the detailed
table of Adjustments in the Non-IFRS Financial Measures section
below.
|
Other Investments and Standalone Businesses
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net
earnings
|
|
|
|
|
Investment and hedge
funds and Other [1]
|
32
|
11
|
155
|
28
|
Standalone businesses
[2]
|
2
|
3
|
5
|
34
|
Net
earnings
|
34
|
14
|
160
|
62
|
[1]
|
Other includes foreign
exchange gains or losses and interest on cash and cash equivalents.
The second quarter of 2023 included a recovery of $97 million
related to the sale of the Corporation's investment in Bellus
Health Inc.
|
[2]
|
Includes the
Corporation's share of earnings (losses) of Lion, LMPG, and
Peak.
|
BASIS OF PRESENTATION
The condensed consolidated interim unaudited financial
statements for the period ended September 30, 2023 of the
Corporation, which reflect the adoption of IFRS 17 and IFRS 9 on
January 1, 2023 that resulted in the
restatement of certain comparative amounts, have been prepared in
accordance with International Financial Reporting Standards (IFRS)
unless otherwise noted and are the basis for the figures presented
in this news release, unless otherwise noted.
NON-IFRS FINANCIAL MEASURES
Net earnings from continuing operations attributable to
participating shareholders are comprised of:
- Adjusted net earnings from continuing operations (adjusted net
earnings) attributable to participating shareholders; and
- Adjustments, which include the after-tax impact of any item
that in management's judgment, including those identified by
management of its publicly traded operating companies, would make
the period-over-period comparison of results from operations less
meaningful. Includes the Corporation's share of Lifeco's impact of
market-related impacts, where actual market returns in the current
period are different than longer-term expected returns on assets
and liabilities, assumption changes and management actions that
impact the measurement of assets and liabilities, realized gains
(losses) on the sale of assets measured at FVOCI, direct equity and
interest rate impacts on the measurement of surplus assets and
liabilities and amortization of acquisition-related finite life
intangible assets, as well as items that management believes are
not indicative of the underlying business results which include
those identified by a subsidiary or a jointly controlled
corporation. Items that management and management of its
subsidiaries believe are not indicative of the underlying business
results include restructuring or reorganization and integration
costs, acquisition and divestiture costs, material legal
settlements, material impairment charges, impact of substantially
enacted income tax rate changes and other tax impairments, certain
non-recurring material items, net gains, losses or costs related to
the disposition or acquisition of a business and other items that,
when removed, assist in explaining underlying operating
performance.
In the third quarter of 2023, the Corporation restated amounts
previously presented as Adjustments to reclassify divestiture costs
related to the sale of Putnam to
net earnings (loss) from discontinued operations. Adjusted net
earnings from continuing operations (or adjusted net earnings)
represents net earnings from continuing operations excluding
Adjustments.
Effective the first quarter of 2023, the Corporation introduced
a refined definition of its non-IFRS financial measure, adjusted
net earnings. This change is consistent with the introduction of a
refined definition of base earnings (losses) by Lifeco with the
adoption of IFRS 17 on January 1,
2023. Lifeco's base earnings (losses) continues to represent
its management's view of the underlying business performance of
Lifeco and provides an alternate measure to understand the
underlying business performance of Lifeco compared to its
IFRS-reported net earnings. The definition of Adjustments continues
to include what the Corporation previously presented, including
Lifeco's impact of assumption changes and management actions that
impact the measurement of assets and liabilities, and
market-related impacts where actual market returns in the current
period are different than longer-term expected returns on assets
and liabilities. The definition of Lifeco's base earnings has been
refined to also exclude the following impacts that are included
in IFRS-reported net earnings for an improved representation
of Lifeco's underlying business performance, as well as for
consistency and comparability with its financial services
peers:
- Realized gains (losses) on the sale of assets measured at
FVOCI;
- The direct equity and interest rate impacts on the measurement
of surplus assets and liabilities; and
- Amortization of acquisition-related finite life intangible
assets.
The Corporation updated its definition of adjusted net earnings
in line with Lifeco's change. The comparative periods have been
restated to reflect this change.
Management uses these financial measures in its presentation and
analysis of the financial performance of Power Corporation, and
believes that they provide additional meaningful information to
readers in their analysis of the results of the Corporation.
Adjusted net earnings, as defined by the Corporation, assists the
reader in the comparison of the current period's results to those
of previous periods as it reflects management's view of the
operating performance of the Corporation and its subsidiaries,
excluding items that are not considered to be part of the
underlying business results.
Fee-related earnings is presented for Sagard and Power Sustainable and includes
revenues from management fees earned across all asset classes, less
i) fee-related compensation including salary, bonus, and
benefits, and ii) operating expenses. Fee-related earnings is
presented on a gross basis, including non-controlling interests.
Fee-related earnings excludes i) share-based compensation expenses,
ii) amortization of acquisition-related intangible assets,
iii) foreign exchange-related gains and losses, iv) net
interest, and v) other items that in management's judgment are not
indicative of underlying operating performance of the alternative
asset investment platforms, which include restructuring costs,
transaction and integration costs related to business acquisitions
and certain non-recurring material items. Management uses this
measure to assess the profitability of the asset management
activities of the alternative asset investment platforms. This
financial measure provides insight as to whether recurring revenues
from management fees, which are not based on future realization
events, are sufficient to cover associated operating expenses.
Adjusted net asset value is commonly used by holding companies
to assess their value. Adjusted net asset value represents the fair
value of the participating shareholders' equity of Power
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 investments held in public entities (including Lifeco, IGM and
GBL) are measured at their market value and investments in private
entities and investment funds are measured at management's estimate
of fair value. This measure presents the fair value of the
participating shareholders' equity of the holding company, and
assists the reader in determining or comparing the fair value of
investments held by the holding company or its overall fair
value.
Adjusted net earnings attributable to participating
shareholders, fee-related earnings, adjusted net asset value, gross
asset value, adjusted net earnings from continuing operations per
share (adjusted net earnings per share) and adjusted net asset
value per share are non-IFRS financial measures and ratios that do
not have a standard meaning and may not be comparable to similar
measures used by other entities.
Presentation of Holding Company Activities
The Corporation's reportable segments include Lifeco, IGM and
GBL, which represent the Corporation's investments in publicly
traded operating companies, as well as the holding company. These
reportable segments, in addition to the asset management
activities, reflect Power Corporation's management structure and
internal financial reporting. The Corporation evaluates its
performance based on the operating segment's contribution to
earnings.
The holding company comprises the corporate activities of the
Corporation and Power Financial, on a combined basis, and presents
the investment activities of the Corporation. The investment
activities of the holding company, including the investments in
Lifeco, IGM and controlled entities within the alternative asset
investment platforms, are presented using the equity method. The
holding company activities present the holding company's assets and
liabilities, including cash, investments, debentures and
non-participating shares. The discussions included in the sections
Financial Position and Cash Flows of the Corporation's most recent
MD&A present the segmented balance sheets and cash flow
statements of the holding company, which are presented in Note 23
of the unaudited Interim Condensed Consolidated Financial
Statements. This presentation is useful to the reader as it
presents the holding company's (parent) results separately from the
results of its consolidated operating subsidiaries.
RECONCILIATIONS OF NON-IFRS FINANCIAL MEASURES
Power Corporation
ADJUSTED NET EARNINGS
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
(restated)
|
2023
|
2022
(restated)
|
Adjusted net earnings
from continuing operations – Non-IFRS financial measure
[1]
|
1,007
|
520
|
2,380
|
1,609
|
Share of Adjustments
[2], net of tax
|
|
|
|
|
Lifeco
|
(10)
|
117
|
(396)
|
484
|
IGM
|
−
|
5
|
(57)
|
27
|
ChinaAMC
|
−
|
−
|
(54)
|
−
|
Sagard and Power
Sustainable
|
−
|
−
|
−
|
(10)
|
|
(10)
|
122
|
(507)
|
501
|
Net earnings from
continuing operations – IFRS financial measure
[1]
|
997
|
642
|
1,873
|
2,110
|
Net earnings (loss)
from discontinued operations – Putnam
|
(22)
|
1
|
(84)
|
(4)
|
Net earnings – IFRS
financial measure [1]
|
975
|
643
|
1,789
|
2,106
|
[1]
|
Attributable to
participating shareholders of Power Corporation.
|
[2]
|
Refer to the
Adjustments section for more detail on Adjustments from Lifeco,
IGM, ChinaAMC, Sagard and Power Sustainable.
|
ADJUSTMENTS (excluded from Adjusted net earnings)
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
(restated)
|
2023
|
2022
(restated)
|
Lifeco [1]
|
|
|
|
|
Market experience
relative to expectations (pre-tax)
|
130
|
152
|
(75)
|
828
|
Income tax (expense)
benefit
|
(26)
|
(51)
|
11
|
(218)
|
Realized OCI gains
(losses) from asset rebalancing (pre-tax)
|
−
|
−
|
(99)
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
16
|
−
|
Assumption changes and
management actions (pre-tax)
|
(85)
|
64
|
(82)
|
40
|
Income tax (expense)
benefit
|
13
|
(7)
|
12
|
(5)
|
Acquisition and
divestiture costs (pre-tax) [2]
|
(1)
|
10
|
(81)
|
(42)
|
Income tax (expense)
benefit
|
−
|
4
|
17
|
13
|
Restructuring and
integration costs (pre-tax)
|
(22)
|
(40)
|
(58)
|
(91)
|
Income tax (expense)
benefit
|
6
|
10
|
16
|
24
|
Amortization of
acquisition-related finite life intangible assets
(pre-tax)
|
(34)
|
(32)
|
(96)
|
(87)
|
Income tax (expense)
benefit
|
9
|
7
|
25
|
21
|
|
(10)
|
117
|
(394)
|
483
|
Effect of consolidation
(pre-tax) [3]
|
−
|
−
|
(3)
|
1
|
Income tax (expense)
benefit
|
−
|
−
|
1
|
−
|
|
(10)
|
117
|
(396)
|
484
|
IGM [1]
|
|
|
|
|
Gain on disposal of
Lifeco shares (pre-tax)
|
−
|
−
|
108
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
(3)
|
−
|
Restructuring charges
(pre-tax)
|
−
|
−
|
(64)
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
17
|
−
|
IFRS 17 adjustment
(Lifeco) (pre-tax)
|
−
|
−
|
9
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
−
|
−
|
|
−
|
−
|
67
|
−
|
Effect of consolidation
(pre-tax) [3]
|
−
|
6
|
(135)
|
34
|
Income tax (expense)
benefit
|
−
|
(1)
|
11
|
(7)
|
|
−
|
5
|
(57)
|
27
|
ChinaAMC
|
|
|
|
|
Transaction costs on
disposal of ChinaAMC (pre-tax)
|
−
|
−
|
(14)
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
−
|
−
|
Income taxes on
disposal of ChinaAMC
|
−
|
−
|
(40)
|
−
|
|
−
|
−
|
(54)
|
−
|
Sagard and Power
Sustainable
|
|
|
|
|
Impairment charges on
direct investments in energy infrastructure (pre-tax)
|
−
|
−
|
−
|
(13)
|
Income tax (expense)
benefit
|
−
|
−
|
−
|
3
|
|
−
|
−
|
−
|
(10)
|
|
(10)
|
122
|
(507)
|
501
|
[1]
|
As reported by Lifeco
and IGM.
|
[2]
|
Comparative results are
restated to reclassify divestiture costs related to the sale of
Putnam to net earnings (loss) from discontinued
operations.
|
[3]
|
The Effect of
consolidation reflects: i) the elimination of intercompany
transactions, including the gain recognized by IGM on the sale of a
portion of its interest in Lifeco to the Corporation, as well as
IGM's share of Lifeco's IFRS 17 adjustment; ii) the application of
the Corporation's accounting method for investments under common
control to the Adjustments reported by Lifeco and IGM; iii) IGM's
share of Lifeco's Adjustments, in accordance with the Corporation's
definition of Adjusted net earnings; and iv) adjustments in
accordance with IAS 39 for IGM for comparative periods presented
prior to the Corporation's adoption of IFRS 9 on January 1,
2023.
|
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 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 per share is presented
on a look-through basis.
The following table presents a reconciliation of the
participating shareholders' equity reported in accordance with IFRS
to the adjusted net asset value, a non-IFRS financial measure:
(in millions of
dollars, except per share amounts)
|
September 30,
2023
|
December 31,
2022
(restated)
|
Participating
shareholders' equity – IFRS financial measure
|
|
|
Stated
capital – participating shares
|
9,382
|
9,486
|
Retained
earnings
|
10,050
|
9,099
|
Reserves
|
1,916
|
2,341
|
|
21,348
|
20,926
|
Fair value
adjustments [1]
|
|
|
Lifeco
|
9,333
|
4,835
|
IGM
|
1,526
|
1,985
|
GBL
|
(1,272)
|
(926)
|
Alternative asset investment platforms
|
690
|
607
|
ChinaAMC
|
−
|
367
|
Other
investments and standalone businesses
|
176
|
206
|
Adjustments to
Other liabilities [1]
|
−
|
(37)
|
|
10,453
|
7,037
|
Adjusted net asset
value – Non-IFRS financial measure
|
31,801
|
27,963
|
Per
share [2]
|
|
|
Participating
shareholders' equity (book value)
|
32.40
|
31.37
|
Adjusted net asset
value
|
48.26
|
41.91
|
[1]
|
Refer to the table
below for more details on the fair value and other
adjustments.
|
[2]
|
Attributable to
participating shareholders.
|
The Corporation's adjusted net asset value per share was
$48.26 at September 30, 2023, compared with $41.91 at December 31, 2022, representing
an increase of 15.2%. The Corporation's book value per
participating share was $32.40 at
September 30, 2023, compared with
$31.37 at December 31, 2022,
representing an increase of 3.3%.
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
(in millions of
dollars, except per share amounts)
|
Holding
company
balance sheet
|
Fair value
adjustment
|
Adjusted net
asset value
|
Holding
company
balance sheet
|
Fair value
adjustment
|
Adjusted net
asset value
|
|
Holding company
assets
|
|
|
|
(restated)
|
(restated)
|
|
|
Investments
|
|
|
|
|
|
|
|
Power
Financial
|
|
|
|
|
|
|
|
Lifeco
|
15,361
|
9,333
|
24,694
|
14,579
|
4,835
|
19,414
|
|
IGM
|
3,570
|
1,526
|
5,096
|
3,607
|
1,985
|
5,592
|
|
GBL
[1]
|
3,499
|
(1,272)
|
2,227
|
3,314
|
(926)
|
2,388
|
|
Alternative asset
investment platforms
|
|
|
|
|
|
|
|
Asset management
companies [2]
|
|
|
|
|
|
|
|
Sagard
|
107
|
163
|
270
|
60
|
−
|
60
|
|
Power
Sustainable
|
10
|
−
|
10
|
33
|
−
|
33
|
|
Investing
activities
|
|
|
|
|
|
|
|
Sagard
[3][4]
|
716
|
258
|
974
|
654
|
263
|
917
|
|
Power
Sustainable
|
1,091
|
269
|
1,360
|
1,101
|
344
|
1,445
|
|
ChinaAMC
|
−
|
−
|
−
|
783
|
367
|
1,150
|
|
Other investments and
standalone businesses
|
|
|
|
|
|
|
|
Other
investments
|
125
|
−
|
125
|
192
|
55
|
247
|
|
Standalone businesses
[5]
|
687
|
176
|
863
|
678
|
151
|
829
|
|
Cash and cash
equivalents
|
1,475
|
−
|
1,475
|
1,277
|
−
|
1,277
|
|
Other assets
|
310
|
−
|
310
|
312
|
−
|
312
|
|
Total holding company
assets
|
26,951
|
10,453
|
37,404
|
26,590
|
7,074
|
33,664
|
|
Holding company
liabilities and
non-participating shares
|
|
|
|
|
|
|
|
Debentures and other
debt instruments
|
897
|
−
|
897
|
897
|
−
|
897
|
|
Other liabilities
[6][7]
|
926
|
−
|
926
|
987
|
37
|
1,024
|
|
Non-participating
shares and perpetual
preferred shares
|
3,780
|
−
|
3,780
|
3,780
|
−
|
3,780
|
|
Total holding company
liabilities and non-participating shares
|
5,603
|
−
|
5,603
|
5,664
|
37
|
5,701
|
|
Net
value
|
|
|
|
|
|
|
|
Participating
shareholders' equity (IFRS) / Adjusted net asset value
(non-IFRS)
|
21,348
|
10,453
|
31,801
|
20,926
|
7,037
|
27,963
|
|
Per
share
|
32.40
|
|
48.26
|
31.37
|
|
41.91
|
|
[1]
|
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).
|
[2]
|
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 and is
primarily composed of cash and net carried interest
receivable.
|
[3]
|
Includes the
Corporation's investments in Portage Ventures I, Portage Ventures
II and Wealthsimple, held by Power Financial.
|
[4]
|
Includes $54 million of
cash held within the Sagard investing activities at September 30,
2023 (cash and other assets of $66 million at December 31,
2022).
|
[5]
|
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.
|
[6]
|
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.
|
[7]
|
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.
|
This news release also contains other non-IFRS financial measures
which are publicly disclosed by the Corporation's subsidiaries
including adjusted net earnings and adjusted net earnings per
share. The section below includes the description and
reconciliation of the non-IFRS financial measures included in this
news release as reported by the Corporation's subsidiaries. The
information below is derived from Lifeco's and IGM's third quarter
MD&As, as prepared and disclosed by the respective companies in
accordance with applicable securities legislation, and which are
also available either directly from SEDAR+ (www.sedarplus.com) or
from their websites, www.greatwestlifeco.com and
www.igmfinancial.com.
Lifeco
ADJUSTED NET EARNINGS (LOSS) FROM CONTINUING
OPERATIONS ATTRIBUTABLE TO LIFECO'S COMMON SHAREHOLDERS
Adjusted net earnings (loss) from continuing
operations [1] (adjusted net earnings (loss))
reflects Lifeco management's view of the underlying business
performance of Lifeco and provides an alternate measure to
understand the underlying business performance compared with IFRS
net earnings. Adjusted net earnings (loss) excludes the following
items from IFRS-reported net earnings:
- Market-related impacts, where actual market returns in the
current period are different than longer-term expected returns on
assets and liabilities;
- Assumption changes and management actions that impact the
measurement of assets and liabilities;
- Acquisition and divestiture costs;
- Restructuring and integration costs;
- Material legal settlements, material impairment charges related
to goodwill and intangible assets, impacts of income tax rate
changes and other tax impairments, net gains, losses or costs
related to the disposition or acquisition of a business, net
earnings (loss) from discontinued operations; and
- Other items that, when removed, assist in explaining Lifeco's
underlying business performance.
The definition of adjusted net earnings (loss) has been refined
(in 2023 and applied to 2022 comparative results) to also exclude
the following impacts that are included in IFRS-reported net
earnings for an improved representation of Lifeco's underlying
business performance, as well as for consistency and comparability
with its financial services industry peers:
- Realized gains (losses) on the sale of assets measured at fair
value through other comprehensive income;
- The direct equity and interest rate impacts on the measurement
of surplus assets and liabilities; and
- Amortization of acquisition-related finite life intangible
assets.
|
|
|
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
(restated)
|
2023
|
2022
(restated)
|
Adjusted net earnings –
Non-IFRS financial measure [1][2]
|
950
|
809
|
2,696
|
2,424
|
Adjustments
|
|
|
|
|
Market experience
relative to expectations (pre-tax)
|
191
|
228
|
(110)
|
1,244
|
Income tax (expense)
benefit
|
(38)
|
(77)
|
16
|
(328)
|
Realized OCI gains
(losses) from asset rebalancing (pre-tax)
|
−
|
−
|
(158)
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
37
|
−
|
Assumption changes and
management actions (pre-tax)
|
(125)
|
96
|
(121)
|
60
|
Income tax (expense)
benefit
|
19
|
(11)
|
18
|
(8)
|
Acquisition and
divestiture costs (pre-tax) [3]
|
(3)
|
16
|
(119)
|
(63)
|
Income tax (expense)
benefit
|
−
|
4
|
25
|
19
|
Restructuring and
integration costs (pre-tax)
|
(30)
|
(58)
|
(84)
|
(135)
|
Income tax (expense)
benefit
|
8
|
15
|
23
|
36
|
Amortization of
acquisition-related finite life intangible assets
(pre-tax)
|
(48)
|
(47)
|
(140)
|
(131)
|
Income tax (expense)
benefit
|
12
|
11
|
36
|
32
|
|
(14)
|
177
|
(577)
|
726
|
Net earnings from
continuing operations – IFRS financial measure
[2]
|
936
|
986
|
2,119
|
3,150
|
Net earnings (loss)
from discontinued operations (post-tax) [3]
|
(31)
|
1
|
(121)
|
(6)
|
Net earnings
[2]
|
905
|
987
|
1,998
|
3,144
|
[1]
|
Defined as "base
earnings" and identified as a non-GAAP financial measure by
Lifeco.
|
[2]
|
Attributable to Lifeco
common shareholders.
|
[3]
|
Comparative results are
restated to reclassify divestiture costs related to the sale of
Putnam to net earnings (loss) from discontinued operations
(post-tax).
|
IGM Financial
ADJUSTED NET EARNINGS ATTRIBUTABLE TO
IGM'S COMMON SHAREHOLDERS
Adjusted net earnings attributable to common shareholders
excludes Adjustments [1], which includes the
after‐tax impact of any item that management considers to be of a
non‐recurring nature, or that could make the period‐over‐period
comparison of results from operations less meaningful.
(in millions of
dollars)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Adjusted net earnings –
Non-IFRS financial measure [2]
|
209.8
|
216.1
|
621.8
|
642.5
|
Adjustments
[1]
|
|
|
|
|
Restructuring and
other (pre-tax)
|
−
|
−
|
(103.3)
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
27.1
|
−
|
Gain on disposal of
Lifeco shares (pre-tax)
|
−
|
−
|
172.9
|
−
|
Income tax (expense)
benefit
|
−
|
−
|
(4.3)
|
−
|
Lifeco IFRS 17
adjustment
|
−
|
−
|
15.1
|
−
|
|
−
|
−
|
107.5
|
−
|
Net earnings – IFRS
financial measure [2]
|
209.8
|
216.1
|
729.3
|
642.5
|
[1]
|
Described as "Other
items" by IGM.
|
[2]
|
Available to IGM common
shareholders.
|
OTHER MEASURES
This news release and other continuous disclosure documents also
include other measures used to discuss activities of the
Corporation, its consolidated publicly traded operating companies
and alternative asset investment platforms including, but not
limited to, "assets under management", "assets under
administration", "assets under management and advisement", "assets
under management and advisement including Strategic Investments",
"book value per participating share", "carried interest", "net
asset value", and "unfunded commitments". Refer to the section
"Other Measures" in the Corporation's most recent MD&A, which
can be located in the Corporation's profile on SEDAR+ at
www.sedarplus.com, for definitions of such measures, which
definitions are incorporated herein by reference.
ELIGIBLE DIVIDENDS
For purposes of the Income Tax Act (Canada) and any similar provincial
legislation, all of the above dividends on the Corporation's
preferred shares (including the Participating Preferred Shares) and
Subordinate Voting Shares are eligible dividends.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release, 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 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 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, capital commitments to strategies of the investment
platforms, the completion of the sale of Putnam to Franklin
Templeton and the completion of Lifeco's other strategic
transactions. 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,
fluctuations in interest rates, inflation and foreign exchange
rates, monetary policies, business investment and the health of
local and global equity and capital markets, management of market
liquidity and funding risks, risks related to investments in
private companies and illiquid securities, risks associated with
financial instruments, changes in accounting policies and methods
used to report financial condition (including uncertainties
associated with significant judgments, estimates and assumptions),
the effect of applying future accounting changes, business
competition, operational and reputational risks, technological
changes, cybersecurity risks, changes in government regulation and
legislation, changes in tax laws, unexpected judicial or regulatory
proceedings, catastrophic events, man-made disasters, terrorist
attacks, wars and other conflicts, or an outbreak of a public
health pandemic or other public health crises (such as COVID-19),
the Corporation's and its subsidiaries' ability to complete
strategic transactions, integrate acquisitions and implement other
growth strategies, the Corporation's and its subsidiaries' success
in anticipating and managing the foregoing factors and with respect
to forward-looking statements of the Corporation's subsidiaries
disclosed in this news release, the factors identified by such
subsidiaries in their respective MD&A.
The 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
risks and uncertainties in the previous paragraph, collectively,
are not expected to have a material impact on the Corporation and
its subsidiaries and with respect to forward-looking statements of
the Corporation's subsidiaries disclosed in this news release, the
risks identified by such subsidiaries in their respective MD&A
and Annual Information Form most recently filed with the securities
regulatory authorities in Canada
and available at www.sedarplus.com. 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
MD&A and Annual Information Form, filed with the securities
regulatory authorities in Canada
and available at www.sedarplus.com.
SOURCE Power Corporation of Canada