Power Corporation of Canada (POW) investor relations material

Leadership transition and strategic focus

• New CFO brings experience from a major Canadian bank, emphasizing a shift from daily operations to a long-term, strategic approach.

• Four pillars guide strategy: long-term focus, capital allocation, risk management, and talent development.

• Active ownership and partnership model with subsidiaries, supporting management teams and fostering collaboration.

• Board engagement is frequent and hands-on, with a focus on risk oversight and strategic input.

• Consistency in management strategy centers on organic and inorganic growth, simplification, and capital allocation.

Communication, governance, and investor relations

• Enhanced investor communications, including the appointment of a dedicated Head of Investor Relations.

• Commitment to transparency and regular engagement with both buy-side and sell-side analysts.

• Subsidiaries like Great-West Lifeco and IGM Financial have held well-attended investor days to improve market understanding.

• Governance model emphasizes active, supportive board roles across multiple subsidiaries.

Subsidiary performance and valuation

• Great-West Lifeco is highlighted for its diversification, strong U.S. business, and consistent double-digit earnings growth.

• Great-West Lifeco introduced medium-term guidance: 8–10% earnings growth, 19% ROE, and 80% cash generation.

• IGM Financial is shifting focus from asset management to wealth management, with a growing mass affluent and high-net-worth client base.

• Strategic investments in Wealthsimple and other platforms are seen as long-term value drivers, even if not immediately accretive.

• NAV discount has narrowed, but management argues for further tightening based on structural changes and asset quality.