Readers are referred to the sections "Non-IFRS Financial
Measures and Presentation" and "Forward-Looking Statements"
at the end of this release.
MONTRÉAL, May 15, 2020 /CNW
Telbec/ - Power Corporation of Canada (Power Corporation or the Corporation)
(TSX: POW) today reported earnings results for the three
months ended March 31, 2020.
Power Corporation
Consolidated results for the period ended March 31
Highlights
- Power Corporation and Power Financial Corporation (Power
Financial) completed a reorganization on February 13, 2020. Power Corporation now holds
100% of the issued and outstanding Power Financial common
shares.
- The Corporation completed share buy backs under its normal
course issuer bid of 7.4 million Subordinate Voting Shares, for
$193 million in the quarter.
- Power Corporation declared a quarterly dividend of $0.4475 per participating share payable
July 31, 2020. The dividend payment
schedule in 2020 was moved ahead by two months and represents a
10.5% increase in comparison with 2019.
- Great-West Lifeco Inc.'s (Lifeco) consolidated assets under
administration at March 31, 2020 were
$1.5 trillion, a 6% decrease from
December 31, 2019 primarily
reflecting the COVID-19 market declines.
- Lifeco declared a quarterly dividend of $0.4380 per common share payable June 30, 2020, unchanged from last quarter.
- IGM Financial Inc. (IGM) assets under management at
March 31, 2020 of $147.5 billion, a decrease of 8.1% from the prior
year and 11.6% from December 31,
2019, due to financial market declines related to
COVID-19.
- IGM declared a quarterly common share dividend of $0.5625 per common share payable July 31, 2020, unchanged from the last
quarter.
- At its annual general meeting held on May 6, 2020, Pargesa Holding SA (Pargesa)
approved a dividend of SF2.63 per share, a 2.7% increase.
- Parjointco N.V. and Pargesa announced on March 11, 2020 a public exchange offer for all
Pargesa shares not held by Parjointco to be exchanged for Groupe
Bruxelles Lambert (GBL) shares. The offer, which is subject to
certain restrictions, is open for acceptance from May 8 to June 8, 2020.
COVID-19
The outbreak of the novel strain of coronavirus, specifically
identified as "COVID-19", has resulted in governments worldwide
enacting emergency measures to combat the spread of the virus.
These measures, which include the implementation of travel bans,
self-imposed quarantine periods and social distancing, have caused
material disruption to businesses globally resulting in an economic
slowdown. Global equity markets have experienced significant
volatility and weakness. Governments and central banks have reacted
with significant monetary and fiscal interventions designed to
stabilize economic conditions.
At Power Corporation and its group companies, the focus has
continued to be on managing the safety and well-being of its
people, maintaining operational effectiveness, ensuring that the
group can serve its customers, assessing impacts on earnings,
liquidity and capital, planning for different potential scenarios
and engaging with stakeholders. The respective boards of directors
of Power Financial, Lifeco, IGM, Pargesa and GBL utilize their
governance structures and processes to oversee the management of
the risk and potential impacts presented by the current economic
slowdown and other potential consequences due to COVID-19.
The duration and impact of the COVID-19 pandemic is unknown at
this time, as is the efficacy of the government and central bank
interventions. It is not possible to reliably estimate the length
and severity of these developments and the impact on the financial
results and condition of the Corporation and its operating
subsidiaries in future periods.
First Quarter
Net earnings attributable to participating shareholders were
$200 million or $0.36 per share, compared with $292 million
or $0.63 per share in 2019.
Adjusted net earnings attributable to participating
shareholders (a non-IFRS financial measure, see
Non-IFRS Financial Measures and Presentation below) were
$345 million or $0.62 per share,
compared with $251 million or
$0.54 per share in 2019.
Contributions to Power Corporation's net earnings per share and
adjusted net earnings per share were:
|
|
|
2020
[1]
|
2019
|
(in dollars per Power
Corporation share)
|
Net
Earnings
|
Adjusted
NetEarnings
|
Net
Earnings
|
Adjusted
NetEarnings
|
- Lifeco
[2]
|
0.27
|
0.52
|
0.63
|
0.55
|
- IGM
|
0.13
|
0.14
|
0.15
|
0.14
|
- Pargesa
|
0.08
|
0.08
|
0.07
|
0.07
|
- Investment
Platforms [3]
|
0.05
|
0.05
|
(0.04)
|
(0.04)
|
- China AMC
[4]
|
0.02
|
0.02
|
0.02
|
0.02
|
- Corporate
Operations [5]
|
(0.19)
|
(0.19)
|
(0.20)
|
(0.20)
|
|
0.36
|
0.62
|
0.63
|
0.54
|
|
|
|
|
|
|
[1]
|
The Corporation
completed the Reorganization on February 13, 2020 and now holds
100% of Power Financial. In the second quarter of 2019, the
Corporation completed a substantial issuer bid and repurchased 9.8%
of its Subordinated Voting Shares.
|
[2]
|
Power Financial
participated in Lifeco's substantial issuer bid, in the second
quarter of 2019; the number of shares held by Power Financial
decreased by 7.4%.
|
[3]
|
Investment platforms
includes earnings (losses) from Power Energy Corporation (Power
Energy), and IntegraMed America, Inc. (IntegraMed).
|
[4]
|
China Asset
Management Co., Ltd.
|
[5]
|
Operating and other
expenses, Dividends on non-participating shares of the Corporation
and its share of Power Financial.
|
Adjustments in 2020, excluded from adjusted net earnings,
were a negative net impact of $145
million or $0.26 per share
mainly related to the Corporation's share of Lifeco's adjustments
which consist of market-related impacts as well as actuarial
assumption changes and management actions. Adjustments in the first
quarter of 2019 were a net positive earnings impact of $41 million related to the market-related impacts
as well as actuarial assumption changes.
Non-IFRS Financial Measure – Adjusted Net Earnings
Effective the first quarter of 2020, the Corporation introduced
an enhanced definition of its non-IFRS earnings measure, Adjusted
net earnings. This change is consistent with the introduction of
base earnings by Lifeco which was introduced in the first quarter
of 2020 to reflect management's view of the operating performance
of Lifeco. The definition of Adjustments has been enhanced to
include Lifeco's impact of actuarial assumption changes and
management actions and direct equity and interest rate market
impacts on insurance contract liabilities net of hedging. The
comparative periods have been restated to reflect the introduction
of this enhanced measure. For additional information, please refer
to the Non-IFRS Financial Measures and Presentation section further
in this news release.
Great-West Lifeco, IGM Financial and
Pargesa
Results for the period ended March 31
GREAT-WEST LIFECO INC.
First Quarter
Net earnings attributable to common shareholders were
$342 million or $0.37 per share,
compared with $657 million or $0.67 per share in 2019. The sale of U.S.
individual life insurance and annuity business closed in the second
quarter of 2019, Lifeco's net earnings and adjusted net earnings
for the first quarter of 2020 do not include any earnings from this
business, which contributed $33
million to net earnings and adjusted net earnings in the
first quarter of 2019. Reported net earnings per share for the
first quarter of 2020 was $0.37, down
from $0.67 in 2019, primarily due to
approximately $300 million of
market-related impacts including unfavourable basis changes
reflecting significant market declines and volatility in the first
quarter of 2020 driven by the COVID-19 pandemic.
Adjusted net
earnings [1] attributable
to common shareholders were $543
million or $0.59 per share,
compared with $569 million or
$0.58 per share in 2019.
[1]
|
Described as base
earnings by Lifeco. For additional information, please refer to the
Non-IFRS Financial Measures and Presentation section further in
this news release.
|
IGM FINANCIAL INC.
First Quarter
Net earnings available to common shareholders were $161 million or $0.68 per share, compared with $168 million
or $0.70 per share in 2019.
Assets under management at March 31,
2020 were $147.5 billion, a
decrease of 11.6% in the quarter, due to financial market declines
related to COVID-19.
PARGESA HOLDING SA
First Quarter
Pargesa reported net earnings of SF6 million, compared with SF91
million in 2019.
Adjusted net earnings were SF11 million, compared with SF94
million in 2019. Adjustments, not included in adjusted net
earnings, were a charge of SF5 million in the first quarter.
Pargesa reported a net asset value at March 31, 2020 of SF8,300 million, representing
SF98.0 per share, compared with SF10,946 million or SF129.2 per
share at December 31, 2019.
Pargesa adopted IFRS 9 in 2018. Power Corporation continues to
apply IAS 39; this results in an increase in its share of the
contribution from Pargesa of $42 million in the first quarter
of 2020.
Investment Platforms
For the period ended March 31
Investment platforms includes income earned from management fees
net of investment platform expenses, income earned on the capital
invested by the Corporation (proprietary capital) in each platform
and the share of earnings (losses) of controlled and consolidated
subsidiaries, associates and jointly controlled investments. For
additional information, refer to the table further in this news
release.
First Quarter
Income from the Corporation's investment platforms was $32 million, compared with a loss of $16 million in 2019.
Dividend on Power Corporation Participating Shares
The Board of Directors declared a quarterly dividend of
44.75 cents per share on the Participating Preferred Shares
and the Subordinate Voting Shares of the Corporation, payable
July 31, 2020 to shareholders of
record June 30, 2020.
Dividend on Power Corporation Non-Participating Preferred
Shares
The Board of Directors also declared quarterly dividends on the
Corporation's preferred shares, payable July 15, 2020 to
shareholders of record June 24,
2020:
|
|
|
|
|
|
Series
|
Stock
Symbol
|
Amount
|
Series
|
Stock
Symbol
|
Amount
|
1986
Series
|
POW.PR.F
|
Floating rate
[1]
|
Series C
|
POW.PR.C
|
36.25¢
|
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¢
|
|
|
[1]
|
Equal to one quarter
of 70% of the average prime rate of two major Canadian chartered
banks for the period March 1 to May 31, 2020.
|
Extension to provide information to make a Canadian income
tax election
In February 2020, Power
Corporation acquired all of the issued and outstanding shares of
Power Financial held by holders of Power Financial Common Shares
other than Power Corporation and its wholly owned subsidiaries
(Former Power Financial Shareholders). Former Power Financial
Shareholders who were resident in Canada and did not hold Power Financial Common
Shares in a tax-free account such as a registered retirement
savings plan or a tax-free savings account would generally realize
a taxable gain (or loss) as a result of the acquisition of their
Power Financial Common Shares by Power Corporation. Certain Former
Power Financial Shareholders can make an election with Power
Corporation to defer all or a portion of the gain that might
otherwise arise from the disposition of Power Financial Common
Shares. As described in the Power Financial Management Proxy
Circular, dated January 10, 2020, the
deadline for Former Power Financial Shareholders to submit the
required information to Power Corporation to make such an election
is 120 days after the date of the acquisition of the Power
Financial Common Shares. Accordingly, the deadline to provide such
information to Power Corporation was originally set to be
June 13, 2020.
Power Corporation is extending the deadline to submit the
required information to Power Corporation to October 31, 2020. For greater certainty,
the statutory deadlines for filing the tax elections with the
taxation authorities are not affected by this extension.
Instructions on how to make a tax election with Power
Corporation can be found on the Reorganization page in the
Investors section of Power Corporation's website at:
https://www.powercorporation.com/en/investors/reorganization/.
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 March 31, 2020, Power
Corporation held the following economic interests:
- 100% – Power Financial www.powerfinancial.com
-
- 66.9% – Great-West Lifeco (TSX: GWO)
www.greatwestlifeco.com
- 62.1% – IGM Financial (TSX: IGM) www.igmfinancial.com
- 27.8% – Pargesa Holding (SIX: PARG) www.pargesa.ch
- 83.9% – Wealthsimple Financial Corp. [1]
www.wealthsimple.com
- Investment Platforms
-
- 100% – Sagard Holdings [2]
www.sagardholdings.com
- 100% – Sagard SAS (Europe)
[2] www.sagard.com
- 100% – Power Sustainable Capital
-
- Power Pacific Investment Management www.powerpacificim.com
- Power Energy www.powerenergycorporation.com
- 27.8% – China AMC [3] www.chinaamc.com
[1]
|
Undiluted
equity interest held by Lifeco, IGM and Power Financial.
|
[2]
|
Refer to the
Corporation's most recent MD&A for interest in the Sagard
Europe Funds and investments held by Sagard Holdings.
|
[3]
|
IGM and the
Corporation each hold a 13.9% interest in China AMC.
|
Earnings
Summary
|
|
Earnings
|
|
(unaudited)
|
Three months
ended
|
(in millions of
Canadian dollars)
|
March 31,
|
|
2020
|
2019
|
Adjusted net
earnings [1]
|
|
|
Power
Financial
|
|
|
Lifeco
[2]
|
362
|
384
|
IGM
[2]
|
99
|
108
|
Pargesa
[2]
|
79
|
46
|
Corporate operations
of Power Financial
|
|
|
Income (loss) from
investments
|
(7)
|
(4)
|
Operating and other
expenses
|
(28)
|
(25)
|
Dividends on perpetual
preferred shares
|
(35)
|
(35)
|
|
470
|
474
|
Less: Attributable to
non-controlling interests of Power Financial
|
118
|
165
|
Corporation's share
of Power Financial
|
352
|
309
|
Investment platforms
[3]
|
32
|
(16)
|
China AMC
|
9
|
7
|
Operating and other
expenses
|
(35)
|
(36)
|
Dividends on
non-participating shares
|
(13)
|
(13)
|
Adjusted net
earnings [1] [4]
|
345
|
251
|
Adjustments – see
below
|
(145)
|
41
|
Net
earnings [4]
|
200
|
292
|
|
Earnings per
Share
|
|
(unaudited)
|
Three months
ended
|
(in dollars per
share)
|
March 31,
|
|
2020
|
2019
|
Adjusted net
earnings per share - basic [1]
|
|
|
Lifeco
[2]
|
0.52
|
0.55
|
IGM
[2]
|
0.14
|
0.14
|
Pargesa
[2]
|
0.08
|
0.07
|
Investment platforms
[3]
|
0.05
|
(0.04)
|
China AMC
|
0.02
|
0.02
|
Operating and other
expenses, and dividends on
non-participating shares
|
(0.19)
|
(0.20)
|
Adjusted net
earnings per
share [1] [4]
|
0.62
|
0.54
|
Adjustments – see
below
|
(0.26)
|
0.09
|
Net earnings per
share [4]
|
0.36
|
0.63
|
[1]
|
Effective the first
quarter of 2020, the Corporation introduced an enhanced definition
of its Non-IFRS earnings measures, Adjusted net earnings. The
comparative figures have been restated. For additional information,
please refer to the Non-IFRS Financial Measures and Presentation
section further in this news release.
|
[2]
|
The contributions
from Lifeco and IGM include an allocation of the results of
Wealthsimple Financial Corp., KOHO Financial Inc., Portag3 Ventures
Limited Partnership and Portag3 Ventures II Limited Partnership,
based on their respective interest. The contributions from IGM and
Pargesa reflect adjustments in accordance with IAS 39.
|
[3]
|
Investment platforms
includes earnings (losses) from Power Energy and
IntegraMed.
|
[4]
|
Attributable to
participating shareholders.
|
Investment
Platforms
|
|
(unaudited)
|
Three months
ended
|
(in millions of
Canadian dollars)
|
March 31,
|
|
2020
|
2019
|
Sagard Holdings
[1] [2]
|
(41)
|
(12)
|
Sagard Europe
[1] [3]
|
38
|
(3)
|
Power Pacific
[1] [4]
|
79
|
14
|
Power
Energy
|
(38)
|
(14)
|
Investment and hedge
funds and other
|
(6)
|
(1)
|
|
32
|
(16)
|
[1]
|
Income (loss) from
investments for Sagard Holdings, Sagard Europe and Power Pacific is
presented net of expenses of their separate dedicated
teams.
|
[2]
|
Includes the
Corporation's share of the earnings (losses) of IntegraMed, a
controlled investment, and the share of earnings (losses) from
investments in a jointly controlled corporation and
associates.
|
[3]
|
On January 1, 2020,
the management and operations of the Sagard Europe Funds, Sagard
SAS, was transferred under Sagard Holdings.
|
[4]
|
Mainly comprised of
gains (losses) realized on the disposal of investments and
dividends received.
|
Adjustments
|
|
(unaudited)
|
Three months
ended
|
(in millions of
Canadian dollars)
|
March 31,
|
|
2020
|
2019
|
Power
Financial
|
|
|
Share of Lifeco's
adjustments:
|
|
|
Actuarial assumption
changes and management actions
|
(35)
|
88
|
Market-related
impacts
|
(100)
|
(28)
|
|
(135)
|
60
|
Share of IGM's
adjustments:
|
|
|
Share of Lifeco's
adjustments [1]
|
(5)
|
2
|
Share of Pargesa's
adjustments
|
|
|
Other
charges
|
(1)
|
−
|
|
(141)
|
62
|
Less: Attributable to
non-controlling interests of Power Financial
|
4
|
21
|
Corporation's share
of Power Financial
|
(145)
|
41
|
[1]
|
Includes IGM's share
of Lifeco's Adjustments for the impact of actuarial assumption
changes and management actions and market impacts on insurance
contract liabilities, in accordance with the Corporation's
definition of Adjusted net earnings. For additional information,
please refer to the Non-IFRS Financial Measures and Presentation
section further in this news release.
|
Net Asset Value
Net asset value represents management's estimate of the fair
value of the participating shareholders' equity of the Corporation.
Net asset value is the fair value of the assets of the combined
Power Financial and Power Corporation's non-consolidated balance
sheet less their net debt and preferred shares. The Corporation's
net asset value per share is presented on a look-through basis.
|
March 31,
2020
|
December 31,
2019
|
|
Combined
non-consolidated balance sheet
|
Reclassifications
|
Fair value
adjustment
|
Net asset
value
|
Combined
non-consolidated balance sheet
|
Reclassifications
|
Fair value
adjustment
|
Net asset
value
|
Assets
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
|
Power
Financial [1]
|
|
|
|
|
|
|
|
|
Lifeco
|
14,161
|
−
|
917
|
15,078
|
13,654
|
−
|
6,976
|
20,630
|
IGM
|
2,825
|
−
|
629
|
3,454
|
2,729
|
−
|
2,786
|
5,515
|
Parjointco
|
3,406
|
−
|
(1,188)
|
2,218
|
3,954
|
−
|
(1,413)
|
2,541
|
Other
Investments
|
194
|
−
|
134
|
328
|
203
|
−
|
127
|
330
|
Sagard
Holdings [2] [3]
|
272
|
173
|
65
|
510
|
306
|
156
|
74
|
536
|
Sagard
Europe [2]
|
551
|
−
|
−
|
551
|
478
|
−
|
−
|
478
|
Power
Pacific [2] [3]
|
616
|
94
|
−
|
710
|
730
|
9
|
−
|
739
|
Power
Energy
|
668
|
−
|
444
|
1,112
|
655
|
−
|
420
|
1,075
|
China
AMC [4]
|
703
|
−
|
−
|
703
|
658
|
−
|
−
|
658
|
Other
investments
|
128
|
−
|
68
|
196
|
149
|
−
|
49
|
198
|
Cash and cash
equivalents [3]
|
1,658
|
(277)
|
−
|
1,381
|
1,585
|
(178)
|
−
|
1,407
|
Other
assets [5]
|
383
|
−
|
−
|
383
|
388
|
−
|
−
|
388
|
Total
assets
|
25,565
|
(10)
|
1,069
|
26,624
|
25,489
|
(13)
|
9,019
|
34,495
|
Liabilities and
non-participating shares
|
|
|
|
|
|
|
|
|
Debentures and other
debt instruments
|
1,023
|
−
|
−
|
1,023
|
933
|
−
|
−
|
933
|
Other
liabilities [6]
|
1,005
|
(10)
|
−
|
995
|
1,088
|
(13)
|
−
|
1,075
|
Non-participating
shares and perpetual preferred shares
|
3,789
|
−
|
−
|
3,789
|
3,790
|
−
|
−
|
3,790
|
Total liabilities and
non-participating shares
|
5,817
|
(10)
|
−
|
5,807
|
5,811
|
(13)
|
−
|
5,798
|
Non-controlling
interests
|
−
|
−
|
−
|
−
|
6,464
|
−
|
3,050
|
9,514
|
|
5,817
|
(10)
|
−
|
5,807
|
12,275
|
(13)
|
3,050
|
15,312
|
Net
value
|
|
|
|
|
|
|
|
|
Participating
shareholders' equity / Net asset value
|
19,748
|
−
|
1,069
|
20,817
|
13,214
|
−
|
5,969
|
19,183
|
|
|
|
|
|
|
|
|
|
Per
share
|
29.20
|
|
|
30.79
|
30.98
|
|
|
44.98
|
[1]
|
Investments held by
Power Financial have been presented on a look-through basis at
December 31, 2019, the corresponding adjustment representing
the ownership not held by Power Corporation is included in
non-controlling interests.
|
[2]
|
The management
companies of the investment funds are presented at their carrying
value in accordance with IFRS.
|
[3]
|
Cash of
$277 million related to Sagard Holdings and Power Pacific has
been included in the fair value ($178 million at
December 31, 2019).
|
[4]
|
Valued at carrying
value in accordance with IFRS.
|
[5]
|
Performance-related
compensation payable of $10 million is presented in the fair
value of Power Pacific ($13 million in Power Pacific at
December 31, 2019).
|
Non-IFRS Financial Measures and Presentation
Effective the first quarter of 2020, the Corporation introduced
an enhanced definition of its non-IFRS earnings measure, Adjusted
net earnings. This change is consistent with the introduction of
base earnings (loss) by Lifeco which was introduced in the first
quarter of 2020 to reflect management's view of the operating
performance of Lifeco. Lifeco defines base earnings (loss) as net
earnings excluding the impact of actuarial assumption changes and
management actions, direct equity and interest rate market impacts
on insurance contract liabilities net of hedging, and items that
management believes are not indicative of the company's underlying
business results. The definition of Adjustments includes what the
Corporation previously presented as other items and also includes
Lifeco's impact of actuarial assumption changes and management
actions, and direct equity and interest rate market impacts on
insurance contract liabilities net of hedging. The definition of
Adjustments used in Adjusted net earnings is being adopted to
enhance comparability of results between reporting periods and in
anticipation of Lifeco's implementation of accounting changes
related to IFRS 17, Insurance Contracts, on January 1, 2023. The comparative periods have
been restated to reflect the introduction of this enhanced
measure.
Net earnings attributable to participating shareholders are
comprised of:
- Adjusted net earnings attributable to participating
shareholders; and
- Adjustments, which include the after-tax impact of any item
that in management's judgment would make the period-over-period
comparison of results from operations less meaningful. Adjustments
include the Corporation's share of Lifeco's impact of actuarial
assumption changes and management actions, direct equity and
interest rate market impacts on insurance contract liabilities net
of hedging, 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.
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, assist the
reader in comparing 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 and excludes
items that are not considered to be part of the underlying business
results from this non-IFRS financial measure.
Adjusted net earnings attributable to participating shareholders
and adjusted net earnings per share are non-IFRS financial measures
that do not have a standard meaning and may not be comparable to
similar measures used by other entities.
The Corporation also uses a non-consolidated basis of
presentation to present and analyze its results whereby the
Corporation's interests in Power Financial and other subsidiaries
are accounted for using the equity method. Presentation on a
non-consolidated basis is a non-IFRS presentation. However, it is
useful to the reader as it presents the holding company's (parent)
results separately from the results of its operating
subsidiaries.
Net asset value is commonly used by holding companies to
determine their value. Net asset value is the fair value of Power
Corporation's non-consolidated assets less its net debt and
preferred shares. The investments held in public entities
(including Lifeco, IGM and Pargesa) are measured at their market
value and investments in private entities and investment funds are
measured at management's estimate of fair value. Pargesa's net
asset value is determined on the basis of current market values for
listed shareholdings, plus the fair value of private equity
activities and Groupe Bruxelles Lambert treasury shares, less net
debt. This measure presents the fair value of the net assets of the
holding company to management and investors and assists the reader
in determining the value of the holding company.
This news release may also contain other non-IFRS financial
measures which are publicly disclosed by the Corporation's
subsidiaries such as sales, assets under management and assets
under administration. Refer to the "Non-IFRS Financial Measures and
Presentation" section of the Corporation's most recent Management's
Discussion and Analysis for the definition of non-IFRS financial
measures and their reconciliation with IFRS financial measures.
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, including the fintech strategy, the expected impact
of the COVID-19 pandemic on the Corporation and its subsidiaries'
operations, results and dividends, as well as the outlook for North
American and international economies for the current fiscal year
and subsequent periods, the intended effects of the Reorganization
(as defined herein), the NCIB (as defined herein) and the proposed
redemption by the Corporation and Power Financial of certain
classes of their First Preferred Shares. 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, and the Corporation's and its subsidiaries'
success in anticipating and managing the foregoing factors.
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 the availability of
cash to complete purchases under the NCIB and to redeem First
Preferred Shares of the Corporation and Power Financial and 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 Annual Information Form,
filed with the securities regulatory authorities in Canada and available at www.sedar.com.
SOURCE Power Corporation of Canada