2014 ANNUAL SHAREHOLDER MEETING

Transcription

1 2014 ANNUAL SHAREHOLDER MEETING 1

2 In the course of today s meeting, officers of the Corporation may make, in their remarks or in response to questions, and the accompanying materials may contain, statements containing forward-looking information. Certain statements, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation s current expectations, or with respect to disclosure regarding the Corporation s public subsidiaries, reflect such subsidiaries disclosed current expectations. Forward-looking statements are provided for the purposes of assisting the listener/reader in understanding the Corporation s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management s current expectations and plans relating to the future and the listener/reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as expects, anticipates, plans, believes, estimates, seeks, intends, targets, projects, forecasts or negative versions thereof and other similar expressions, or future or conditional verbs such as may, will, should, would and could. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation s and its subsidiaries control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, business competition, operational and reputational risks, technological change, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Corporation s and its subsidiaries ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Corporation s and its subsidiaries success in anticipating and managing the foregoing factors. The listener/reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect. Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Additional information about the risks and uncertainties of the Corporation s business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent Management s Discussion and Analysis and its most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available at Certain financial terms which may be included in statements today or in the accompanying materials, such as operating earnings, are non-ifrs financial measures that do not have a standard meaning and may not be comparable to similar measures used by other entities. Please refer to the Corporation s annual and most recent interim Management s Discussion and Analysis for more information, including how such measures are defined, an explanation of their purpose and a reconciliation of the non-ifrs measures to the corresponding IFRS measures, where comparable IFRS measures exist. 2

3 2014 ANNUAL SHAREHOLDER MEETING 3

4 The Honourable Paul Desmarais, P.C., C.C., O.Q

5 2014 ANNUAL SHAREHOLDER MEETING 5

6 OPERATING EARNINGS Operating Earnings attributable to participating shareholders ($ Million) Per Share attributable to participating shareholders ($)

7 NET EARNINGS Net Earnings attributable to participating shareholders ($ Million) Per Share attributable to participating shareholders ($)

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9 EARNINGS ($ Million) Operating Earnings attributable to common shareholders Net Earnings attributable to common shareholders 1,678 1,708 1,618 1,896 9

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11 ACQUISITION > 1.3 billion acquisition > Leading insurance company in Ireland > Integration well underway and on target 11

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13 EARNINGS ($ Million) Operating Earnings attributable to common shareholders 1,946 2,052 Excluding Irish Life charges and other 2,175 13

14 Paul Mahon President and Chief Executive Officer 14

15 UNITED STATES Robert L. Reynolds President and Chief Executive Officer Great-West Lifeco U.S. 15

16 UNITED STATES 16

17 UNITED STATES Acquisition of J.P. MORGAN U.S. RETIREMENT PLAN SERVICES 17

18 UNITED STATES > Second-largest retirement services provider in the United States > Serving close to 7 million people > US$387 billion of assets under administration 18

19 UNITED STATES 19

20 5-YEAR MUTUAL FUND PERFORMANCE (Percentage of assets) Q Q Top Decile 0% 24% Top Quartile 10% 65% Above Median 36% 85% Bottom Quartile 35% 0% Note: Global sector, spectrum, short duration income, and absolute return funds performance not included. 20

21 5-YEAR MUTUAL FUND PERFORMANCE 21

22 MUTUAL FUND SALES (US$ Billion) Q Q Q Q Q Sales Net Flows 22

23 CANADA J. Dave Johnston President and Chief Operating Officer Great-West Life Canada 23

24 CANADA more than 12 million Canadians 24

25 CANADA 2013 Net Earnings $1.1 billion up 11% 25

26 CANADA Leading Market Shares > Individual life insurance 32% > Individual living benefits 24% > Individual segregated funds 27% > Group insurance 22% > Group D.C. retirement plans 18% 26

27 EUROPE 27

28 EUROPE 2013 Net Earnings $701 million up 14% 28

29 EUROPE Arshil Jamal President and Chief Operating Officer Europe and Reinsurance 29

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32 EARNINGS ($ Million) Operating Earnings available to common shareholders

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34 Murray J. Taylor President and Chief Executive Officer Investors Group Co-President and Chief Executive Officer IGM Financial 34

35 109 region offices 4,673 consultants 1 million clients 35

36 MUTUAL FUND ($ Billion) Gross Sales

37 ASSET REDEMPTION Redemption Rate on Long-term Mutual Funds Industry excluding Investors Group Investors Group % % DEC 2006 DEC 2007 DEC 2008 DEC 2009 DEC 2010 DEC 2011 DEC 2012 DEC 2013 (Twelve-month trailing % of average assets under management) 37

38 Jeffrey R. Carney President and Chief Executive Officer Mackenzie Financial Co-President and Chief Executive Officer IGM Financial 38

39 250 dealer firms 30,000 financial advisors over 1 million Canadians 39

40 MUTUAL FUND ($ Billion) Gross Sales Net Sales (Redemptions) (2.0) (0.5) 40

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43 Arnaud Vial Managing Director of Pargesa 43

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48 Operating Earnings SF251 million 48

49 ASIA 49

50 ASIA > Power Corporation holds 4.3% > Dividends received in 2013: $8 million > Projected acquisition of 100% of CITIC Limited 50

51 ASIA > Power Corporation holds 10% > Leader in the Chinese asset management sector > Assets under management: $43 billion as at December 31,

52 INVESTMENT IN SAGARD FUNDS Sagard Europe Sagard Capital Sagard China 52

53 INVESTMENT PHILOSOPHY > Long-term perspective > Detailed fundamental analysis > Close involvement with investee companies > Experienced and dedicated management teams 53

54 INVESTMENT IN SAGARD FUNDS Fair Value $1,032 million as at December 31,

55 EUROPE > Power Corporation invested: $419 million > Cumulative distributions received: $405 million > Fair Value: $184 million as at December 31,

56 UNITED STATES > Power Corporation invested: $302 million > Fair Value: $527 million as at December 31,

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58 Sagard China CHINA > Participates in the Chinese stock market since 2005 > Participates in the Hong Kong stock market since 2010 > Fair Value: $321 million as at December 31,

59 OTHER INVESTMENTS IN FUNDS > Investments in third-party private equity funds and hedge funds > Fair Value: $410 million as at December 31,

60 INVESTMENT IN SAGARD FUNDS AND OTHER INVESTMENTS IN FUNDS Total Fair Value over $1.4 billion as at December 31,

61 POWER ENERGY CORPORATION 61

62 Communications and media 62

63 COMMUNICATIONS AND MEDIA 63

64 COMMUNICATIONS AND MEDIA Launch Day April 18,

65 COMMUNICATIONS AND MEDIA 500,000 Downloads 65

66 COMMUNICATIONS AND MEDIA > 58% of readers are adults aged 25 to 54 > Major awards and honours 66

67 COMMUNICATIONS AND MEDIA 67

68 CORPORATE SOCIAL RESPONSIBILITY 68

69 First Quarter Results 69

70 FIRST QUARTER EARNINGS ($ Million) (Per share) ($ Million) (Per share) Operating Earnings attributable to participating shareholders Net Earnings attributable to participating shareholders % 70

71 Quarterly Dividend 71

72 QUARTERLY DIVIDEND $0.29 per participating share 72

73 2014 ANNUAL SHAREHOLDER MEETING 75