Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. To learn more, visit www.PowerCorporation.com.
At September 30, 2021, Power Corporation held the following economic interests:
100% -- Power Financial www.powerfinancial.com
66.7% Great-West Lifeco (TSX: GWO) www.greatwestlifeco.com
61.8% IGM Financial (TSX: IGM) www.igmfinancial.com
14.1% GBL ([1]) (Euronext: GBLB) www.gbl.be
55.0% Wealthsimple ([2]) www.wealthsimple.com
Investment Platforms
100% Sagard www.sagard.com
100% Power Sustainable www.powersustainable.com
Power Pacific www.powerpacificim.com
Power Sustainable Energy Infrastructure www.powersustainable.com
13.9% China AMC ([3]) www.chinaamc.com
[1] Held through Parjointco, a jointly controlled corporation
(50%).
[2] Undiluted equity interest held by Portage I, Power
Financial and IGM, representing a fully diluted equity
interest of 42.6%.
[3] IGM also holds a 13.9% interest in China AMC.
Earnings Summary
Contribution to Adjusted and Net
Earnings
(unaudited) Three months ended Nine months ended
(in millions of dollars) September 30, September 30,
2021 2020 2021 2020
Adjusted net earnings ([1])
Lifeco ([2]) 580 454 1,625 1,289
IGM ([2]) 167 133 440 347
GBL ([2]) (11) (15) 63 73
Effect of consolidation ([3]) (4) (31) 74 (10)
732 541 2,202 1,699
Alternative asset investment
platforms and Other ([4][5]) 45 (15) 421 50
China AMC 17 11 45 30
Standalone businesses ([4][6]) 58 23 213 (16)
Corporate operating and other
expenses (57) (30) (186) (144)
Dividends on non-participating and
perpetual preferred
shares (47) (47) (141) (142)
Non-controlling interests of Power
Financial - - - (116)
Adjusted net earnings ([7]) 748 483 2,554 1,361
Adjustments -- see below (7) 22 (263) 10
Net earnings ([7]) 741 505 2,291 1,371
Contribution to Adjusted and Net
Earnings per Share
(unaudited) Three months ended Nine months ended
(in dollars per share) September 30, September 30,
2021 2020 2021 2020
Adjusted net earnings per share --
basic ([1])
Lifeco ([2]) 0.86 0.67 2.40 1.91
IGM ([2]) 0.25 0.20 0.65 0.52
GBL ([2]) (0.02) (0.02) 0.09 0.11
Effect of consolidation ([3]) (0.01) (0.06) 0.11 (0.07)
1.08 0.79 3.25 2.47
Alternative asset investment
platforms and Other ([4][5]) 0.06 (0.01) 0.62 0.08
China AMC 0.03 0.02 0.07 0.04
Standalone businesses ([4][6]) 0.09 0.03 0.32 (0.02)
Corporate operating and other
expenses and dividendson
non--participating and perpetual
preferred shares (0.16) (0.11) (0.49) (0.44)
Adjusted net earnings per share
([7]) 1.10 0.72 3.77 2.13
Adjustments -- see below (0.01) 0.03 (0.39) 0.02
Net earnings per share ([7]) 1.09 0.75 3.38 2.15
[1] For a reconciliation of Lifeco, IGM, GBL, and Alternative
and other investments' non-IFRS adjusted net earnings
to their net earnings, refer to the section "Contribution
to net earnings and adjusted net earnings" of the
Corporation's most recent MD&A.
[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
includes: a) an adjustment related to Lifeco's investment
in the PSEIP; and b) an allocation of the results
of the fintech portfolio including Wealthsimple, Koho,
Portage I, Portage II and Portage 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 Non-Consolidated
Statements of Earnings section of the Corporation's
most recent MD&A.
[4] Presented in Alternative and other investments in
the Non-Consolidated Statements of Earnings section
of the Corporation's most recent MD&A.
[5] Includes earnings of the Corporation's alternative
asset investment platforms, including investments
held through Power Financial.
[6] Includes the results of Lion, LMGP, Peak, GP Strategies
and IntegraMed (up to the date of deconsolidation
on May 20, 2020).
[7] Attributable to participating shareholders.
Alternative and Other Investments
-- Adjusted Net
Earnings
(unaudited) Three months ended Nine months ended
(in millions of dollars) September 30, September 30,
2021 2020 2021 2020
Sagard
Asset management activities ([1]) (18) 4 44 -
Investing activities (proprietary
capital) ([2]) ([3]) 55 (15) 90 10
Power Sustainable
Asset management activities ([1]) (7) (6) (19) (14)
Investing activities (proprietary
capital) ([4]) 13 1 279 52
Standalone businesses ([5]) 58 23 213 (16)
Investment and hedge funds and
Other ([6]) 2 1 27 2
103 8 634 34
[1] Includes management fees charged by the investment
platform on proprietary capital. Management fees paid
by the Corporation are deducted from income from investing
activities.
[2] Includes a realized gain of $66 million recognized
by the Corporation on disposal of its interest in
Sagard Europe 3 in the third quarter of 2021, as well
as realized gains on disposals by Sagard Europe 3
of private equity investments in the second and third
quarters of 2021.
[3] Includes the Corporation's share of earnings (losses)
of Wealthsimple and Koho (up to the date of deconsolidation
on December 1, 2020). The first quarter of 2021 includes
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 Funds
and Wealthsimple; as well, excludes 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. The increase in fair value of the
Corporation's investment, including its investment
held through Power Financial, in Portage I, Portage
II, Portage III, Koho and Wealthsimple was $606 million
in the nine-month period ended September 30, 2021,
compared with an increase of $184 million in fair
value in the corresponding period in 2020.
[4] Mainly comprised of gains (losses) realized on the
disposal of investments and dividends received. In
2021, the Corporation recognized realized gains on
the disposal of investments in Power Pacific of $229
million, $56 million and $18 million, respectively,
in the first, second and third quarters.
[5] The third quarter of 2021, includes a net contribution
of $55 million from Lion which consists of the Corporation's
share of earnings of Lion, a decrease in the fair
value of outstanding call rights held by Power Sustainable
and a decrease in amounts payable for long-term incentive
plans, net of related taxes. In the second quarter
of 2021, the Corporation recorded a net gain of $153
million related to its investment in Lion which is
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, and iii)
an expense of $56 million related to the increase
in amounts payable for long-term incentive plans and
deferred taxes. The Corporation also recorded a reversal
of a previously recognized impairment on its investment