Readers are referred to
the sections Non-IFRS Financial Measures and Forward-Looking
Statements at the end of this release. All figures are expressed in
Canadian dollars unless otherwise noted.
|
|
MONTRÉAL, March 16,
2023 /CNW/ - Power Corporation of Canada (Power Corporation or the Corporation)
(TSX: POW) today reported earnings results for the three and twelve
months ended December 31, 2022.
Power Corporation
Consolidated results for the period ended December 31,
2022
HIGHLIGHTS
Power Corporation
- Net earnings [1] were $486
million or $0.73 per share
[2] for the fourth quarter of 2022, compared with
$626 million or $0.93 per share in 2021.
Adjusted net earnings [1][3] were $394 million or $0.59 per share, compared with $676 million or $1.00 per share in the fourth quarter of
2021.
- Adjusted net asset value per share [3] was
$41.91 at December 31, 2022, compared with $52.60 at December 31,
2021.
The Corporation's book value per participating share [4]
was $34.58 at December 31, 2022, compared with $34.56 at December 31,
2021.
- The Corporation declared a quarterly dividend of $0.5250 per participating share, an increase of
6.1%, payable on May 1, 2023.
- On January 12, 2023, the
Corporation announced the closing of the transaction to combine its
interest in China Asset Management
Co., Ltd. (ChinaAMC) under IGM Financial Inc.
- In 2022, the Corporation purchased for cancellation 11.2
million subordinate voting shares for a total of $415 million.
- On February 27, 2023, the
Corporation announced its intention to purchase for cancellation up
to 30 million subordinate voting shares during a twelve-month
period under a normal course issuer bid.
- Contribution to net earnings from the publicly traded operating
companies was $833 million in the
fourth quarter of 2022, compared with $667
million in 2021.
Contribution to adjusted net earnings from the publicly traded
operating companies was $741 million
in the fourth quarter of 2022, compared with $702 million in 2021.
Great-West Lifeco Inc. (Lifeco)
- Fourth quarter net earnings were $1,026
million, compared with $765
million in the fourth quarter of 2021.
Adjusted net earnings [5] were $892 million, compared with $825 million in the fourth quarter of 2021.
- Total assets were $701 billion
and assets under administration [3] were $2.5 trillion at December
31, 2022, an increase of 11% and 9%, respectively, from
December 31, 2021.
- Lifeco announced a 6.1% increase in its quarterly dividend, to
$0.52 per share, payable March 31, 2023.
- Lifeco announced, on January 25,
2023, its intention to purchase for cancellation up to 20
million common shares during a twelve-month period under a normal
course issuer bid.
IGM Financial Inc. (IGM or IGM Financial)
- Fourth quarter net earnings were $224.7
million, compared with net earnings of $268.5 million and adjusted net earnings of
$260.8 million in 2021.
- Assets under management and advisement [4] were
$249.4 billion at December 31, 2022, a decrease of 10.0% from
December 31, 2021 and an increase of
4.7% from September 30, 2022.
- Net outflows [6] were $440
million in the fourth quarter of 2022, compared with net
inflows of $1.2 billion in the fourth
quarter of 2021. Annual net inflows [6] for 2022 of
$1.2 billion remained strong.
- In December 2022, IGM announced a
strategic agreement with nesto Inc. to provide its clients with a
best-in-class mortgage experience and enhance its efforts to
support growth in its mortgage business.
Groupe Bruxelles Lambert (GBL)
- GBL reported a net asset value [4] of €17.8 billion
at December 31, 2022, or €116.18 per
share, compared with €22.5 billion or €143.91 per share at
December 31, 2021.
- In the fourth quarter of 2022, GBL completed €136 million of
share buybacks. GBL completed €643 million of share buybacks in the
twelve months ended December 31, 2022
and cancelled 3.4 million treasury shares.
Sagard Holdings Inc. (Sagard) and Power Sustainable Capital Inc.
(Power Sustainable)
- Assets under management [4], including unfunded
commitments, of the alternative asset investment platforms were
$21.1 billion at December 31, 2022, an increase from $19.1 billion at December
31, 2021.
- On November 29, 2022, Power
Sustainable announced the closing of Vintage II of Power
Sustainable Energy Infrastructure Partnership (PSEIP), raising
$600 million of additional capital
commitments, increasing the committed capital of the investment
platform to $1.6 billion.
- On February 8, 2023, Sagard announced the initial closing of Sagard
Senior Lending Fund with commitments totalling US$315 million.
- On March 9, 2023, Power
Sustainable announced the launch of its Global and European
infrastructure credit platforms which will target global
investments in energy, transportation, social, digital and other
sustainable infrastructure.
[1]
|
Attributable to
participating shareholders.
|
[2]
|
All per share amounts
are per participating share of the Corporation.
|
[3]
|
Adjusted net earnings,
adjusted net asset value and assets under administration (reported
by Lifeco) are non-IFRS financial measures. Adjusted net earnings
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.
|
[4]
|
See the Other Measures
section later in this news release.
|
[5]
|
Defined as "base
earnings" by Lifeco, a non-IFRS financial measure; see the Non-IFRS
Financial Measures section later in this news release.
|
[6]
|
Related to assets under
management and advisement.
|
FOURTH QUARTER
Net earnings attributable to participating shareholders were
$486 million or $0.73 per share, compared with $626 million or $0.93 per share in 2021.
Adjusted net earnings attributable to participating shareholders
[1] were $394 million or
$0.59 per share, compared with
$676 million or $1.00 per share in 2021.
Contributions to Power Corporation's Earnings
(in millions of
dollars, except per share amounts)
|
Net
Earnings
|
|
Adjusted Net
Earnings
|
|
2022
|
2021
|
|
2022
|
2021
|
Lifeco
[2]
|
683
|
511
|
|
594
|
550
|
IGM
[2]
|
140
|
166
|
|
140
|
161
|
GBL
[2]
|
(24)
|
(3)
|
|
(24)
|
(3)
|
Effect of consolidation
[3]
|
34
|
(7)
|
|
31
|
(6)
|
Publicly traded
operating companies
|
833
|
667
|
|
741
|
702
|
|
|
|
|
|
|
Sagard and Power
Sustainable [4]
|
(183)
|
14
|
|
(183)
|
29
|
ChinaAMC
|
14
|
17
|
|
14
|
17
|
Other investments and
standalone businesses [5]
|
(82)
|
22
|
|
(82)
|
22
|
|
582
|
720
|
|
490
|
770
|
Corporate operations
and Other [6]
|
(96)
|
(94)
|
|
(96)
|
(94)
|
|
486
|
626
|
|
394
|
676
|
|
|
|
|
|
|
Per participating
share
|
0.73
|
0.93
|
|
0.59
|
1.00
|
Average shares
outstanding (in millions)
|
667.3
|
676.5
|
|
667.3
|
676.5
|
Publicly traded operating companies: contribution to net
earnings was $833 million and
adjusted net earnings was $741 million, representing an
increase of 24.9% and 5.6%, respectively, from the fourth quarter
of 2021:
Lifeco: contribution to net and
adjusted net earnings increased by 33.7% and 8.0%,
respectively.
IGM: contribution to net and
adjusted net earnings decreased by 15.7% and 13.0%,
respectively.
GBL: negative contribution to net
earnings of $24 million. Results include the Corporation's
share of a charge of $18 million in the fourth quarter of 2022
for losses due to an increase in the put right liability of the
non-controlling interests in Webhelp Group (Webhelp) and charges
related to Webhelp's employee incentive plan, as well as a decrease
in contributions from GBL's associates and consolidated operating
companies.
Sagard and Power
Sustainable: net earnings include a negative contribution
of $160 million from Power Sustainable mainly related to
a charge for the revaluation of non-controlling interests of
$63 million due to fair value
increases within the Power Sustainable Energy Infrastructure
Partnership and operating losses in its energy infrastructure
platform, as well as realized losses in the Power Sustainable
China portfolio of $55 million. Sagard had a negative contribution of
$23 million.
Other investments and standalone
businesses: negative contribution to net and adjusted net
earnings of $82 million includes a non-cash impairment charge
on the Corporation's investment in The Lion Electric Company (Lion)
of $109 million after tax.
Adjustments in the fourth quarter of 2022, excluded from
adjusted net earnings, were a positive net impact to earnings of
$92 million or $0.14 per share, mainly related to the
Corporation's share of Lifeco's adjustments. Adjustments in the
fourth quarter of 2021 were a negative net impact to earnings of
$50 million or $0.07 per
share, mainly related to the Corporation's share of Lifeco's
adjustments and the Corporation's share of an impairment charge of
$15 million recognized by Power
Sustainable on direct investments in energy assets.
[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]
|
Includes earnings
(losses) from the Corporation's other investments and standalone
businesses.
|
[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.
|
TWELVE MONTHS
Net earnings attributable to participating shareholders were
$1,913 million or $2.85 per share, compared with $2,917 million or $4.31 per share in 2021.
Adjusted net earnings attributable to participating shareholders
[1] were $1,915 million or $2.85 per share, compared with $3,230 million or $4.77 per share in 2021.
Contributions to Power Corporation's Earnings
(in millions of
dollars, except per share amounts)
|
Net
Earnings
|
|
|
Adjusted Net
Earnings
|
|
2022
|
2021
|
|
|
2022
|
2021
|
Lifeco
[2]
|
2,143
|
2,088
|
|
|
2,143
|
2,175
|
IGM
[2]
|
538
|
606
|
|
|
538
|
601
|
GBL
[2]
|
(133)
|
60
|
|
|
(133)
|
60
|
Effect of consolidation
[3]
|
74
|
(35)
|
|
|
66
|
68
|
Publicly traded
operating companies
|
2,622
|
2,719
|
|
|
2,614
|
2,904
|
|
|
|
|
|
|
|
Sagard and Power
Sustainable [4]
|
(375)
|
311
|
|
|
(365)
|
426
|
ChinaAMC
|
57
|
62
|
|
|
57
|
62
|
Other investments and
standalone businesses [5]
|
(20)
|
259
|
|
|
(20)
|
259
|
|
2,284
|
3,351
|
|
|
2,286
|
3,651
|
Corporate operations
and Other [6]
|
(371)
|
(434)
|
|
|
(371)
|
(421)
|
|
1,913
|
2,917
|
|
|
1,915
|
3,230
|
|
|
|
|
|
|
|
Per participating
share
|
2.85
|
4.31
|
|
|
2.85
|
4.77
|
Average shares
outstanding (in millions)
|
670.6
|
676.8
|
|
|
670.6
|
676.8
|
|
|
|
|
[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 earnings
(losses) from the Corporation's other investments and standalone
businesses.
|
[6]
|
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 December 31,
2022
The information below
is derived from Lifeco and IGM's annual 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.sedar.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 fourth quarter press release
at December 31, 2022. Further information on GBL's results is
available on its website at www.gbl.be.
|
GREAT-WEST LIFECO INC.
FOURTH QUARTER
Net earnings attributable to common shareholders were
$1,026 million or $1.10 per share, compared with $765 million or $0.82 per share in 2021.
Adjusted net earnings [1] attributable to common
shareholders were $892 million or $0.96 per share, compared with $825 million
or $0.89 per share in 2021.
Adjustments in the fourth quarter of 2022, excluded from
adjusted net earnings, were a positive net impact of $134 million, compared with a negative net impact
of $60 million in 2021. Lifeco's adjustments consisted of:
- Positive earnings impact of $49
million relating to actuarial assumption changes and other
management actions;
- Positive market-related impacts on liabilities of $38 million; and
- Positive impact from tax legislative changes of $84 million.
Partially offset by:
- Restructuring and integration costs of $32 million in the
United States segment; and
- Transaction costs of $5 million
related to recent acquisitions in the Europe segment.
IGM FINANCIAL INC.
FOURTH QUARTER
Net earnings available to common shareholders were $224.7 million or $0.94 per share, compared with $268.5 million or $1.11 per share in 2021.
Adjusted net earnings [2] available to common
shareholders were $224.7 million or
$0.94 per share, compared with
$260.8 million or $1.08 per share in 2021.
Adjustments in the fourth quarter of 2021, excluded from
adjusted net earnings, were a positive impact of $7.7 million.
Assets under management and advisement [3] at
December 31, 2022 were $249.4 billion, a decrease of 10.0% from
December 31, 2021 and an increase of
4.7% from September 30, 2022.
GROUPE BRUXELLES
LAMBERT
FOURTH QUARTER
GBL reported [4] a net loss of €112 million,
compared with a net loss of €12 million in 2021.
GBL reported a net asset value [3] of
€17,775 million at December 31, 2022, or €116.18 per
share, compared with €22,501 million or €143.91 per share at
December 31, 2021.
[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]
|
Adjusted net earnings
is a non-IFRS financial measure. For additional information, please
refer to the Non-IFRS Financial Measures section later in this news
release.
|
[3]
|
See the Other Measures
section later in this news release.
|
[4]
|
GBL adopted IFRS 9 in
2018. Power Corporation continues to apply IAS 39; this resulted in
a positive adjustment to the contribution from GBL of $72 million
in the fourth quarter of 2022.
|
Sagard and Power
Sustainable
Results for the quarter ended
December 31, 2022
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.
|
FOURTH QUARTER
Net loss and adjusted net loss [1] of
alternative asset investment platforms were $183 million,
compared with net earnings of $14 million and adjusted net
earnings of $29 million in the
corresponding period in 2021.
Adjustments in the fourth quarter of 2021, excluded from
adjusted net earnings, were $15
million and related to the Corporation's share of an
impairment charge recognized by Power Sustainable on direct
investments in energy assets.
Net loss in the fourth quarter is comprised of:
- A negative contribution of $7
million from the asset management activities of Sagard and Power Sustainable;
- A negative contribution of $176
million from investing activities comprised of :
-
- $13 million from Sagard; and
- $163 million from Power
Sustainable comprised of:
-
- realized losses in the Power Sustainable China portfolio of
$55 million;
- losses before the revaluation of non-controlling interests
liabilities of $45 million which
mainly includes operating losses in its energy infrastructure
platform due to seasonality; and
- a revaluation of non-controlling interests
liabilities [2] of $63
million due to fair value increases within the Power
Sustainable Energy Infrastructure Partnership.
Summary of assets under
management [3] (including unfunded
commitments):
(in billions of dollars)
|
December 31,
2022
|
December 31,
2021
|
Sagard [4]
|
17.7
|
16.2
|
Power
Sustainable
|
3.4
|
2.9
|
Total
|
21.1
|
19.1
|
Percentage of
third-party and associates
|
87 %
|
81 %
|
|
|
|
|
[1]
|
Adjusted net earnings
is a non-IFRS financial measure. For additional information, please
refer to the Non-IFRS Financial Measures section later in this news
release.
|
[2]
|
The Corporation
controls and consolidates the activities of PSEIP on a historical
cost basis; however, limited partner equity interests held by third
parties have redemption features and are classified as a financial
liability which are remeasured at their redemption value. The net
asset value [3] of PSEIP was $1,035 million at
December 31, 2022, compared with $805 million at September 30,
2022.
|
[3]
|
See the Other Measures
section later in this news release.
|
[4]
|
Includes ownership in
Wealthsimple Financial Corp. (Wealthsimple) valued at $0.9 billion
at December 31, 2022 ($2.1 billion at December 31, 2021) and
excludes assets under management of Sagard's wealth management
business.
|
Other Investments and Standalone Businesses
Results for the quarter ended December 31, 2022
Other investments and
standalone businesses includes the Corporation's investments in
investment and hedge funds and the share of earnings (losses) of
standalone businesses.
|
FOURTH QUARTER
STANDALONE BUSINESSES
Net loss of the standalone businesses in the fourth quarter of
2022 was $102 million, compared with net earnings of
$12 million in 2021. The net loss in the fourth quarter of
2022 includes a non-cash impairment charge of $109 million after tax ($126 million pre-tax) on the Corporation's
investment in Lion due to a decline in market value at December 31, 2022.
At December 31, 2022, the fair value of standalone
businesses was $0.8 billion,
compared with $1.5 billion at
December 31, 2021.
Adjusted Net Asset Value and Participating Shareholders'
Equity
At December 31, 2022
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
$41.91 at December 31, 2022,
compared with $52.60 at
December 31, 2021, representing a decrease of 20.3%.
|
(in millions of
dollars, except per share amounts)
|
December 31,
2022
|
December 31,
2021
|
Variation %
|
Publicly
Traded
Operating
Companies
|
Lifeco
|
19,414
|
23,545
|
(18)
|
IGM
|
5,592
|
6,749
|
(17)
|
GBL
|
2,388
|
3,157
|
(24)
|
|
|
27,394
|
33,451
|
(18)
|
|
|
|
|
|
Alternative
Asset
Investment
Platforms
|
Sagard
[1]
|
977
|
1,515
|
(36)
|
Power Sustainable
[1]
|
1,478
|
1,654
|
(11)
|
|
2,455
|
3,169
|
(23)
|
|
|
|
|
|
Other
|
ChinaAMC
|
1,150
|
1,150
|
−
|
Standalone businesses
[2]
|
829
|
1,331
|
(38)
|
Other assets and
investments
|
559
|
661
|
(15)
|
Cash and cash
equivalents
|
1,277
|
1,635
|
(22)
|
|
|
3,815
|
4,777
|
(20)
|
|
|
|
|
|
|
Gross asset
value
|
33,664
|
41,397
|
(19)
|
|
Liabilities and
preferred shares
|
(5,701)
|
(5,810)
|
2
|
|
Adjusted net asset
value
|
27,963
|
35,587
|
(21)
|
|
|
|
|
|
|
Shares outstanding
(millions)
|
667.1
|
676.6
|
|
|
Adjusted net asset
value per share
|
41.91
|
52.60
|
(20)
|
[1]
|
Includes the management
companies of the investment platforms at their carrying
value.
|
[2]
|
Includes 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]
(%)
|
December 31,
2022
|
December 31,
2021
|
Lifeco
[2]
|
66.6
|
620.3
|
$31.30
|
$37.96
|
IGM
|
62.2
|
147.9
|
$37.80
|
$45.62
|
GBL [3]
|
14.9
|
22.8
|
€74.58
|
€98.16
|
[1]
|
At December 31,
2022.
|
[2]
|
On January 12, 2023,
subsequent to year-end, 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.
|
[3]
|
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
$34.58 at December 31, 2022,
comparable with $34.56 at
December 31, 2021.
|
(in millions of
dollars, except per share amounts)
|
December 31,
2022
|
December 31,
2021
|
Variation %
|
Publicly
Traded
Operating
Companies
|
Lifeco
|
16,646
|
15,496
|
7
|
IGM
|
3,685
|
3,434
|
7
|
GBL
|
3,314
|
4,278
|
(23)
|
|
|
23,645
|
23,208
|
2
|
|
|
|
|
|
Alternative
Asset
Investment
Platforms
|
Sagard
|
714
|
822
|
(13)
|
Power
Sustainable
|
1,134
|
1,389
|
(18)
|
|
1,848
|
2,211
|
(16)
|
|
|
|
|
|
Other
|
ChinaAMC
|
783
|
766
|
2
|
Standalone businesses
[1]
|
678
|
725
|
(6)
|
Other assets and
investments
|
504
|
611
|
(18)
|
Cash and cash
equivalents
|
1,277
|
1,635
|
(22)
|
|
|
3,242
|
3,737
|
(13)
|
|
|
|
|
|
|
Total assets
|
28,735
|
29,156
|
(1)
|
|
Liabilities and
preferred shares
|
(5,664)
|
(5,771)
|
2
|
|
Participating
shareholders' equity
|
23,071
|
23,385
|
(1)
|
|
|
|
|
|
|
Shares outstanding
(millions)
|
667.1
|
676.6
|
|
|
Book value per
participating share
|
34.58
|
34.56
|
−
|
[1]
|
Includes Lion, LMPG and
Peak.
|
Update on Transition to IFRS 17 and IFRS 9
IFRS 17, Insurance Contracts (IFRS 17) has
replaced IFRS 4, Insurance Contracts (IFRS 4)
effective January 1, 2023. While the
new standard will change Lifeco's recognition and measurement of
insurance contracts and the corresponding presentation and
disclosures in the Corporation's financial statements, it is not
expected to have a material financial impact or to change Lifeco's
underlying business strategy. IFRS 9, Financial
Instruments (IFRS 9) has replaced IAS
39, Financial Instruments: Recognition and
Measurement effective January 1,
2023 and is not expected to lead to a material change in the
level of investments. Upon adoption of IFRS 17 and IFRS 9, the
Corporation expects an increase in net earnings volatility.
The Corporation will report under the new standards for the
first time for the quarter ended March 31,
2023. The Corporation and Lifeco continue to evaluate the
impact of the adoption of these standards. The Corporation's
January 1, 2022 shareholders' equity
is expected to decrease by approximately 10% on the adoption of
IFRS 17 on January 1, 2023 in line
with original expectations, primarily due to Lifeco's establishment
of the contractual service margin (CSM), partially offset by the
removal of provisions no longer required under IFRS 17.
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, an increase of 6.1%, payable May 1, 2023 to shareholders of record
March 31, 2023.
Dividends on Power Corporation Non-Participating Preferred
Shares
The Board of Directors also declared quarterly dividends on the
Corporation's preferred shares, payable April 15, 2023 to shareholders of record
March 24, 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 fourth 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 Friday, March 17,
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 1-888-886-7786 toll-free in North America
or
416-764-8658 for local calls made in the Toronto area.
A replay of the
conference call will be available from March 17, 2023 at 11:30 a.m.
(Eastern Time) until May 14, 2023 by calling 1-877-674-7070
toll-free in North America or 416-764-8692 for local calls made in
the Toronto area, using the access code 919207#.
A webcast archive will also be available
on Power Corporation's website.
|
Investor Relations Contact:
|
|
Treasury
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 December 31, 2022, Power Corporation held the following
economic interests:
100% – Power Financial
|
www.powerfinancial.com
|
66.6 %
|
Great-West
Lifeco [1] (TSX: GWO)
|
www.greatwestlifeco.com
|
62.2 %
|
IGM Financial
(TSX: IGM)
|
www.igmfinancial.com
|
14.9 %
|
GBL [2] (Euronext:
GBLB)
|
www.gbl.be
|
54.3 %
|
Wealthsimple [3]
|
www.wealthsimple.com
|
|
Investment Platforms
|
|
100 %
|
Sagard [4]
|
www.sagard.com
|
100 %
|
Power
Sustainable
|
www.powersustainable.com
|
|
13.9% –
ChinaAMC [1][5]
|
www.chinaamc.com
|
[1]
|
On January 12, 2023,
subsequent to year-end, the Corporation and IGM completed a
transaction in which the interest in ChinaAMC was combined
under IGM. IGM's interest in ChinaAMC is now 27.8%.
In a separate agreement, IGM sold approximately 15.2 million common
shares of Lifeco, representing a 1.6% interest in Lifeco, to Power
Financial. Refer to the section China Asset Management Company,
Ltd. (ChinaAMC) in the Corporation's most recent
MD&A.
|
[2]
|
Held through
Parjointco, a jointly controlled corporation (50%).
|
[3]
|
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%.
|
[4]
|
The Corporation holds
an 80.9% interest in Sagard Holdings Management Inc.
|
[5]
|
IGM also held a 13.9%
interest in ChinaAMC.
|
Earnings Summary
Contribution to Adjusted Net Earnings and Net
Earnings
(in millions of
dollars, except per share amounts)
|
Three months ended
December 31,
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Adjusted net
earnings [1]
|
|
|
|
|
Lifeco [2]
|
594
|
550
|
2,143
|
2,175
|
IGM [2]
|
140
|
161
|
538
|
601
|
GBL [2]
|
(24)
|
(3)
|
(133)
|
60
|
Effect of consolidation
[3]
|
31
|
(6)
|
66
|
68
|
|
741
|
702
|
2,614
|
2,904
|
Sagard and Power
Sustainable [4]
|
(183)
|
29
|
(365)
|
426
|
ChinaAMC
|
14
|
17
|
57
|
62
|
Other investments and
standalone businesses [5]
|
(82)
|
22
|
(20)
|
259
|
Corporate operating and
other expenses
|
(49)
|
(47)
|
(184)
|
(233)
|
Dividends on
non-participating and perpetual preferred shares
|
(47)
|
(47)
|
(187)
|
(188)
|
Adjusted net
earnings [6]
|
394
|
676
|
1,915
|
3,230
|
Adjustments
[7]
|
92
|
(50)
|
(2)
|
(313)
|
Net
earnings
|
|
|
|
|
Lifeco
[2]
|
683
|
511
|
2,143
|
2,088
|
IGM
[2]
|
140
|
166
|
538
|
606
|
GBL
[2]
|
(24)
|
(3)
|
(133)
|
60
|
Effect of consolidation
[3]
|
34
|
(7)
|
74
|
(35)
|
|
833
|
667
|
2,622
|
2,719
|
Sagard and Power
Sustainable [4]
|
(183)
|
14
|
(375)
|
311
|
ChinaAMC
|
14
|
17
|
57
|
62
|
Other investments and
standalone businesses [5]
|
(82)
|
22
|
(20)
|
259
|
Corporate operating and
other expenses
|
(49)
|
(47)
|
(184)
|
(246)
|
Dividends on
non-participating and perpetual preferred shares
|
(47)
|
(47)
|
(187)
|
(188)
|
Net
earnings [6]
|
486
|
626
|
1,913
|
2,917
|
|
|
|
|
|
Earnings per share –
basic [6]
|
|
|
|
|
Adjusted net
earnings
|
0.59
|
1.00
|
2.85
|
4.77
|
Adjustments
|
0.14
|
(0.07)
|
−
|
(0.46)
|
Net
earnings
|
0.73
|
0.93
|
2.85
|
4.31
|
[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]
|
Effect of consolidation
reflects: i) the elimination of intercompany transactions; ii) the
application of the Corporation's accounting method for investments
under common control to the reported net earnings of the publicly
traded operating companies, which include: a) an adjustment related
to Lifeco's investment in PSEIP; and b) an allocation of the
results of the fintech portfolio, including Wealthsimple, Portage
Ventures I, Portag3 Ventures II Limited Partnership (Portage
Ventures II) and Portage Ventures III Limited Partnership (Portage
Ventures III), to the contributions from Lifeco and IGM based on
their respective interest; and iii) adjustments in accordance with
IAS 39 for IGM and GBL. Refer to the detailed table in the
Contribution to Net Earnings and Adjusted Net Earnings section of
the Corporation's most recent MD&A.
|
[4]
|
Consists of earnings of
the Corporation's alternative asset investment platforms, including
investments held through Power Financial.
|
[5]
|
Includes the results of
Lion, LMPG, Peak and GP Strategies Corporation (GP Strategies) (up
to the date of disposal in the fourth quarter of 2021).
|
[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
December 31,
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Adjusted net
earnings (loss)
|
|
|
|
|
Asset management
activities [1]
|
|
|
|
|
Sagard
[2]
|
(10)
|
28
|
(68)
|
72
|
Power
Sustainable
|
3
|
(11)
|
(15)
|
(27)
|
Investing activities
(proprietary capital)
|
|
|
|
|
Sagard
[3]
|
(13)
|
32
|
26
|
122
|
Power
Sustainable
|
|
|
|
|
China public equity
[4]
|
(55)
|
7
|
(218)
|
301
|
Energy
Infrastructure
|
|
|
|
|
Losses before changes
in non-controlling interests liabilities [5]
|
(45)
|
(23)
|
(19)
|
(37)
|
Revaluation of
non-controlling interests liabilities [6]
|
(63)
|
(4)
|
(71)
|
(5)
|
Adjusted net
earnings (loss)
|
(183)
|
29
|
(365)
|
426
|
Adjustments
[7]
|
−
|
(15)
|
(10)
|
(115)
|
Net earnings
(loss)
|
(183)
|
14
|
(375)
|
311
|
[1]
|
Includes management
fees charged by the investment platforms on proprietary capital and
management of standalone businesses. Management fees paid by the
Corporation are deducted from income from investing
activities.
|
[2]
|
The first and second
quarters of 2022 include a reversal of net carried interest of $13
million and $42 million, respectively, mainly due to decreases in
the fair value of Wealthsimple and investments held by Portage
Ventures II in the periods.
|
[3]
|
Includes the
Corporation's share of earnings (losses) of Wealthsimple. The first
and second quarters of 2022 include a reversal of carried interest
payable of $13 million and $25 million, respectively,
mainly due to decreases in the fair value of Wealthsimple and
investments held by Portage Ventures II in the periods. The first
quarter of 2021 included a charge of $52 million related to
the Corporation's share of the carried interest payable due to
increases in fair value of investments held in the Portage Ventures
Funds and Wealthsimple; as well, it excluded a charge of
$100 million related to the remeasurement of the put right
liability held by certain of the non-controlling interests in
Wealthsimple to fair value which has been included in Adjustments
(see the Adjustments section below). 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, KOHO Financial Inc. and Wealthsimple was
$430 million in the twelve-month period ended
December 31, 2022, compared with an increase of
$650 million in fair value in the corresponding period in
2021.
|
[4]
|
The fair value of the
Corporation's investments was $666 million at December 31, 2022,
compared with $962 million at December 31, 2021. In 2022, the
Corporation realized losses of $201 million on the disposal of
investments in Power Sustainable China, of which $55 million was
recognized in the fourth quarter, and $16 million in impairments,
of which $13 million was recognized in the first quarter due to
declines in Chinese equity markets (realized gains of $311 million
in 2021, of which $10 million was recognized in the fourth
quarter).
|
[5]
|
The fourth quarter of
2022 includes the Corporation's share of carried interest expense
of $19 million, which results from an increase in fair value of
assets held in PSEIP and operating losses mainly related to
seasonality. In the year ended December 31, 2022, these losses
were partially offset by a gain on disposal of a portfolio of solar
assets of $20 million, of which $17 million was
recognized in the second quarter, and unrealized gains on
derivative contracts hedging energy infrastructure projects of
$46 million, of which $10 million was recognized in the
fourth quarter.
|
[6]
|
The fourth quarter of
2022 includes a charge of $63 million related to the Corporation's
share of the revaluation of non-controlling interests liabilities
which mainly results from an increase in fair value of assets held
in PSEIP. The NAV of PSEIP was $1,035 million at
December 31, 2022, compared with $805 million at
September 30, 2022. 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.
|
[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
December 31,
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
2022
|
2021
|
Net earnings
(loss)
|
|
|
|
|
Investment and hedge
funds and Other [1]
|
20
|
10
|
48
|
34
|
Standalone businesses
[2]
|
(102)
|
12
|
(68)
|
225
|
Net earnings
(loss)
|
(82)
|
22
|
(20)
|
259
|
[1]
|
Other consists mainly
of foreign exchange gains or losses and interest on cash and cash
equivalents. Includes a gain on disposal of a property by the
Corporation of $7 million, recognized in the second quarter of
2022.
|
[2]
|
The fourth quarter of
2022 includes a non-cash impairment charge of $109 million after
tax ($126 million pre-tax) on the Corporation's investment in Lion
due to a decline in market value at December 31, 2022. In 2021, the
contribution from Lion included a net gain of $153 million
recognized in the second quarter related to its investment in Lion
which was comprised of i) a gain of $62 million related to the
effect of the change in ownership as a result of the completion of
the merger transaction between Lion and Northern Genesis
Acquisition Corp.; ii) a gain of $147 million related to the
revaluation of call rights held by Power Sustainable, a portion of
which were exercised during the second quarter of 2021; and iii) an
expense of $56 million related to the increase in amounts payable
for long-term incentive plans and deferred taxes.
|
NON-IFRS FINANCIAL MEASURES
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, 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
actuarial assumption changes and other management actions, direct
equity and interest rate market impacts on insurance and investment
contract liabilities net of hedging, and related deferred tax
liabilities 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 costs, integration costs related to
business acquisitions, material legal settlements, material
impairment charges, impact of substantially enacted income tax rate
changes and other tax impairments, certain non-recurring material
items, and net gains, losses or costs related to the disposition or
acquisition of a business.
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 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.
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 intangibles, 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 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 2022
Annual MD&A present the segmented balance sheet and cash flow
statement of the holding company, which are presented in Note 33 of
the Corporation's 2022 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
December 31,
|
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
Adjusted net earnings –
Non-IFRS financial measure [1]
|
394
|
676
|
|
1,915
|
3,230
|
Share of Adjustments
[2], net of tax
|
|
|
|
|
|
Lifeco
|
89
|
(38)
|
|
−
|
(89)
|
IGM
|
3
|
3
|
|
8
|
(96)
|
Sagard and Power
Sustainable
|
−
|
(15)
|
|
(10)
|
(115)
|
Corporate
operations
|
−
|
−
|
|
−
|
(13)
|
|
92
|
(50)
|
|
(2)
|
(313)
|
Net earnings – IFRS
financial measure [1]
|
486
|
626
|
|
1,913
|
2,917
|
[1]
|
Attributable to
participating shareholders of Power Corporation.
|
[2]
|
Refer to the
Adjustments section for more detail on Adjustments from Lifeco,
IGM, Sagard and Power Sustainable, and corporate
operations.
|
ADJUSTMENTS (excluded from Adjusted net earnings)
(in millions of
dollars)
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
Lifeco
[1]
|
|
|
|
|
|
Actuarial assumption
changes and other management actions (pre-tax)
|
33
|
19
|
|
59
|
99
|
Income tax (expense)
benefit
|
−
|
(3)
|
|
27
|
(9)
|
Market-related impacts
on liabilities (pre-tax)
|
31
|
14
|
|
(27)
|
23
|
Income tax (expense)
benefit
|
(6)
|
(1)
|
|
5
|
(7)
|
Transaction costs
related to acquisitions (pre-tax)
|
(4)
|
(51)
|
|
(46)
|
(139)
|
Income tax (expense)
benefit
|
−
|
2
|
|
13
|
13
|
Restructuring and
integration charges (pre-tax)
|
(28)
|
(14)
|
|
(118)
|
(60)
|
Income tax (expense)
benefit
|
7
|
4
|
|
31
|
16
|
Tax legislative
changes impact
|
37
|
−
|
|
37
|
−
|
Income tax (expense)
benefit
|
19
|
−
|
|
19
|
(14)
|
Net gain (loss) on
business dispositions (pre-tax)
|
−
|
(9)
|
|
−
|
(9)
|
Income tax (expense)
benefit
|
−
|
−
|
|
−
|
−
|
|
89
|
(39)
|
|
−
|
(87)
|
Effect of consolidation
(pre-tax) [2]
|
−
|
1
|
|
−
|
(2)
|
Income tax (expense)
benefit
|
−
|
−
|
|
−
|
−
|
|
89
|
(38)
|
|
−
|
(89)
|
IGM
[1]
|
|
|
|
|
|
Net gain on business
dispositions (pre-tax)
|
−
|
7
|
|
−
|
7
|
Income tax (expense)
benefit
|
−
|
(2)
|
|
−
|
(2)
|
|
−
|
5
|
|
−
|
5
|
Effect of consolidation
(pre-tax) [2]
|
2
|
(2)
|
|
7
|
(101)
|
Income tax (expense)
benefit
|
1
|
−
|
|
1
|
−
|
|
3
|
3
|
|
8
|
(96)
|
Sagard and Power
Sustainable
|
|
|
|
|
|
Remeasurements of
Wealthsimple's put right liability
|
−
|
−
|
|
−
|
(100)
|
Impairment charges on
direct investments in energy infrastructure (pre-tax)
|
−
|
(19)
|
|
(13)
|
(19)
|
Income tax (expense)
benefit
|
−
|
4
|
|
3
|
4
|
|
−
|
(15)
|
|
(10)
|
(115)
|
Corporate
operations
|
|
|
|
|
|
Reorganization
charges
|
−
|
−
|
|
−
|
(13)
|
|
92
|
(50)
|
|
(2)
|
(313)
|
[1]
|
As reported by Lifeco
and IGM.
|
[2]
|
Effect of consolidation
reflects i) the elimination of intercompany transactions; ii) the
application of the Corporation's accounting method for investments
under common control to the Adjustments reported by Lifeco and IGM,
which includes an allocation of the Adjustments related to the
fintech portfolio based on their respective interest; 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.
|
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)
|
December 31,
2022
|
|
December 31,
2021
|
Participating
shareholders' equity – IFRS financial measure
|
|
|
|
Stated capital –
participating shares
|
9,486
|
|
9,603
|
Retained
earnings
|
11,103
|
|
10,807
|
Reserves
|
2,482
|
|
2,975
|
|
23,071
|
|
23,385
|
Fair value
adjustments [1]
|
|
|
|
Lifeco
|
2,768
|
|
8,049
|
IGM
|
1,907
|
|
3,315
|
GBL
|
(926)
|
|
(1,121)
|
Alternative asset investment platforms
|
607
|
|
958
|
ChinaAMC
|
367
|
|
384
|
Other
investments and standalone businesses
|
206
|
|
656
|
Adjustments to
Other liabilities [1]
|
(37)
|
|
(39)
|
|
4,892
|
|
12,202
|
Adjusted net asset
value – Non-IFRS financial measure
|
27,963
|
|
35,587
|
Per
share [2]
|
|
|
|
Participating
shareholders' equity (book value)
|
34.58
|
|
34.56
|
Adjusted net asset
value
|
41.91
|
|
52.60
|
[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
$41.91 at December 31, 2022,
compared with $52.60 at
December 31, 2021, representing a decrease of 20.3%. The
Corporation's book value per participating share was $34.58 at December 31, 2022, comparable with
$34.56 at December 31, 2021.
|
|
|
December 31,
2022
|
|
|
|
December 31,
2021
|
(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
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
Power
Financial
|
|
|
|
|
|
|
|
Lifeco
|
16,646
|
2,768
|
19,414
|
|
15,496
|
8,049
|
23,545
|
IGM
|
3,685
|
1,907
|
5,592
|
|
3,434
|
3,315
|
6,749
|
GBL
[1]
|
3,314
|
(926)
|
2,388
|
|
4,278
|
(1,121)
|
3,157
|
Alternative asset investment platforms
|
|
|
|
|
|
|
|
Asset
management companies [2]
|
|
|
|
|
|
|
|
Sagard
|
60
|
−
|
60
|
|
116
|
−
|
116
|
Power
Sustainable
|
33
|
−
|
33
|
|
21
|
−
|
21
|
Investing activities
|
|
|
|
|
|
|
|
Sagard [3]
|
654
|
263
|
917
|
|
706
|
693
|
1,399
|
Power
Sustainable
|
1,101
|
344
|
1,445
|
|
1,368
|
265
|
1,633
|
ChinaAMC
|
783
|
367
|
1,150
|
|
766
|
384
|
1,150
|
Other
investments and standalone
businesses
|
|
|
|
|
|
|
|
Other
investments
|
192
|
55
|
247
|
|
262
|
50
|
312
|
Standalone businesses [4]
|
678
|
151
|
829
|
|
725
|
606
|
1,331
|
Cash and cash
equivalents
|
1,277
|
−
|
1,277
|
|
1,635
|
−
|
1,635
|
Other assets
|
312
|
−
|
312
|
|
349
|
−
|
349
|
Total holding company
assets
|
28,735
|
4,929
|
33,664
|
|
29,156
|
12,241
|
41,397
|
Holding company
liabilities and
non-participating shares
|
|
|
|
|
|
|
|
Debentures and other
debt instruments
|
897
|
−
|
897
|
|
897
|
−
|
897
|
Other liabilities
[5][6]
|
987
|
37
|
1,024
|
|
1,090
|
39
|
1,129
|
Non-participating
shares and perpetual
preferred shares
|
3,780
|
−
|
3,780
|
|
3,784
|
−
|
3,784
|
Total holding company
liabilities and non-
participating shares
|
5,664
|
37
|
5,701
|
|
5,771
|
39
|
5,810
|
Net
value
|
|
|
|
|
|
|
|
Participating
shareholders' equity (IFRS) /
Adjusted net asset value (non-IFRS)
|
23,071
|
4,892
|
27,963
|
|
23,385
|
12,202
|
35,587
|
Per
share
|
34.58
|
|
41.91
|
|
34.56
|
|
52.60
|
[1]
|
The Corporation's share
of GBL's reported net asset value was $3.8 billion
(€2.6 billion) at December 31, 2022 ($4.7 billion
(€3.3 billion) at December 31, 2021).
|
[2]
|
The management
companies of the investment funds are presented at their carrying
value and are 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]
|
An additional deferred
tax liability of $13 million has been included in the adjusted net
asset value at December 31, 2022 ($80 million at December 31, 2021)
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.
|
[5]
|
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.
|
[6]
|
At December 31, 2022,
an additional deferred tax liability of $37 million ($39 million at
December 31, 2021) has been 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, adjusted net earnings per share and Lifeco's assets under
administration. 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 annual
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.sedar.com) or from
their websites, www.greatwestlifeco.com and
www.igmfinancial.com.
|
Lifeco
ADJUSTED NET EARNINGS ATTRIBUTABLE TO
LIFECO'S COMMON SHAREHOLDERS
Adjusted net earnings (loss) [1] 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:
- The impact of actuarial assumption changes and other management
actions;
- The net earnings impact related to the direct equity and
interest rate market impacts on insurance and investment contract
liabilities, net of hedging, and related deferred tax liabilities,
which includes:
-
- the impact of hedge ineffectiveness related to segregated fund
guarantee liabilities that are hedged and the performance of the
related hedge assets;
- the impact on segregated fund guarantee liabilities not
hedged;
- the impact on general fund equity and investment properties
supporting insurance contract liabilities; and
- other market impacts on insurance and investment contract
liabilities and deferred tax liabilities, including those arising
from the difference between actual and expected market movements;
and
- Certain items that, when removed, assist in explaining Lifeco's
underlying business performance including restructuring costs,
integration costs related to business acquisitions, material legal
settlements, material impairment charges related to goodwill and
intangible assets, impact of substantially enacted income tax rate
changes and other tax impairments and net gains, losses or costs
related to the disposition or acquisition of a business.
(in millions of
dollars)
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
Adjusted net earnings –
Non-IFRS financial measure [1][2]
|
892
|
825
|
|
3,219
|
3,260
|
Adjustments
|
|
|
|
|
|
Actuarial assumption
changes and other management actions (pre-tax)
|
49
|
28
|
|
88
|
148
|
Income tax (expense)
benefit
|
−
|
(5)
|
|
41
|
(14)
|
Market-related impacts
on liabilities (pre-tax)
|
46
|
22
|
|
(41)
|
35
|
Income tax (expense)
benefit
|
(8)
|
(2)
|
|
8
|
(11)
|
Transaction costs
related to acquisitions (pre-tax)
|
(5)
|
(76)
|
|
(68)
|
(207)
|
Income tax (expense)
benefit
|
−
|
2
|
|
19
|
18
|
Restructuring and
integration charges (pre-tax)
|
(43)
|
(21)
|
|
(178)
|
(90)
|
Income tax (expense)
benefit
|
11
|
6
|
|
47
|
24
|
Tax legislative
changes impact (pre-tax)
|
55
|
−
|
|
55
|
−
|
Income tax (expense)
benefit
|
29
|
−
|
|
29
|
(21)
|
Net gain (loss) on
business dispositions (pre-tax)
|
−
|
(14)
|
|
−
|
(14)
|
|
134
|
(60)
|
|
−
|
(132)
|
Net earnings – IFRS
financial measure [2]
|
1,026
|
765
|
|
3,219
|
3,128
|
[1]
|
Defined as "base
earnings" and identified as a non-GAAP financial measure by
Lifeco.
|
[2]
|
Attributable to Lifeco
common shareholders.
|
LIFECO'S ASSETS UNDER MANAGEMENT AND ASSETS UNDER
ADMINISTRATION
Assets under management and assets under administration are
non-IFRS financial measures that provide an indicator of the size
and volume of Lifeco's overall business. Total assets under
administration includes total assets per Lifeco's financial
statements, proprietary mutual funds and institutional assets, and
other assets under administration. Please refer to the section
"Glossary" of Lifeco's most recent Management's Discussion and
Analysis for additional information regarding proprietary mutual
funds and institutional assets, and other assets under
administration.
(in billions of dollars)
|
December 31,
2022
|
December 31,
2021
|
Total assets per
financial statements
|
701.5
|
630.5
|
Other assets under
management
|
331.7
|
377.2
|
Assets under
management
|
1,033.2
|
1,007.7
|
Other assets under
administration [1]
|
1,464.5
|
1,283.9
|
Assets under
administration [1]
|
2,497.7
|
2,291.6
|
[1]
|
Comparative figures for
2021 have been restated to include Financial Horizons Group and
Excel Private Wealth Inc. assets under administration in the Canada
segment.
|
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
December 31,
|
|
Twelve months ended
December 31,
|
|
2022
|
2021
|
|
2022
|
2021
|
Adjusted net earnings –
Non-IFRS financial measure [2]
|
224.7
|
260.8
|
|
867.2
|
971.2
|
Adjustments
[1]
|
|
|
|
|
|
Gain on sale of
Personal Capital (pre-tax)
|
−
|
10.6
|
|
−
|
10.6
|
Income tax (expense)
benefit
|
−
|
(2.9)
|
|
−
|
(2.9)
|
|
−
|
7.7
|
|
−
|
7.7
|
Net earnings – IFRS
financial measure [2]
|
224.7
|
268.5
|
|
867.2
|
978.9
|
[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's 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", "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.sedar.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, statements concerning deferred taxes, the
Corporation's normal course issuer bid commenced in 2023,
statements concerning the expected impact of IFRS 17 on
shareholders' equity, fundraising activities by investment
platforms and capital commitments by the Power group and third
parties, and the strategic agreement with nesto Inc. and timing of
offerings thereunder. 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 (such as the invasion of
Ukraine), 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.sedar.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
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