National Bank Financial 23rd Annual Canadian Financial Services Conference PDF presentation

INTRODUCTION TO

Power Corporation

March 2025

Presentation of the holding company, non-IFRS financial measures, other measures and clarifications on adjusted net asset value

Presentation of the Holding Company

TheCorporation'sreportable segments include Great-West, IGM Financial and GBL, which represent theCorporation'sinvestments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect PowerCorporation'smanagement structure and internal financial reporting. The Corporation evaluates its performance based on the operatingsegment'scontribution 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 Great-West, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holdingcompany'sassets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections"Financial Position"and"Cash Flows"in Part A of theCorporation'scurrent MD&A present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 35 of the 2024 Consolidated Financial Statements, and reconciliations of these statements are provided throughout theCorporation'scurrent MD&A.

Non-IFRS Financial Measures

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 listeners/readers in their analysis of the results of the Corporation.

Adjusted net earnings from continuing operations attributable to participating shareholders("Adjustednetearnings")is calculated as (1) net earnings from continuing operations attributable to participating shareholders excluding (2) adjustments, which include the after-tax impact of any item that inmanagement'sjudgment, including those identified by management of Great-West and IGM, would make the period-over-period comparison of results from operations less meaningful. Adjustments include theCorporation'sshare of Great-West'simpact of market-related impacts, where actual market returns in the current period are different than longer-term expected returns, assumption changes and management actions that impact the measurement of assets and liabilities, realized gains (losses) on the sale of assets measured at FVOCI, direct equity and interest rate impacts on the measurement of surplus assets and liabilities, and amortization of acquisition-related finite life intangible assets, 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, including business transformation impacts (including restructuring or reorganization and integration costs, acquisition and divestiture costs), material legal settlements, material impairment charges, material impacts of the remeasurement of deferred tax assets and liabilities including those as a result of income tax rate changes, and other tax impairments, certain non-recurring material items, net gains, losses or costs related to the disposition or acquisition of a business, including those related to an investment in an associate or jointly controlled corporation, impacts related to remeasurements due to market changes that result in an accounting mismatch including the remeasurement of derivatives where the hedged item is not also measured at fair value and hedge accounting is not applied, and the revaluation of redemption liabilities, share warrants and conversion options on convertible and exchangeable debt obligations, the impact of the revaluation of non-controlling interests liabilities related to PSEIP which result from changes in fair value of assets held within the fund, and the share of earnings (losses) from the consolidated activities of PSEIP attributable to third-party investors; and other items that, when removed, assist in explaining underlying operating performance. Adjusted net earnings from continuing operations per share("Adjustednet earnings pershare")is calculated as adjusted net earnings from continuing operations divided by the weighted average number of participating shares outstanding.

Effective the first quarter of 2024, the definition of Adjustments was modified to include the impact of the revaluation of non-controlling interests liabilities related to PSEIP. Effective the fourth quarter of 2024, the definition of Adjustments was modified to include the impacts from applying the definition of Adjustments to the net earnings disclosed by GBL, the results of theCorporation'sinvesting activities and the standalone businesses. The definition was also expanded to include impacts related to remeasurements due to market changes that create an accounting mismatch. The comparative periods have been restated to reflect these changes.

Adjusted net asset value ("NAV" or "Net asset value") is commonly used by holding companies to assess their value. Adjusted net asset value represents the fair value of the participatingshareholders'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 (also referred to as Gross asset value) less their net debt and preferred shares. The investments held in publicly traded entities (including Great-West, IGM and GBL) are measured at their market value and investments in private entities and investment funds are measured atmanagement'sestimate of fair value. This measure presents the fair value of the participatingshareholders'equity of the holding company, and assists the listener/reader in determining or comparing the fair value of investments held by the holding company or itsoverall fair value. The definition of adjusted net asset value involves a number of assumptions, judgments and estimates that may prove to be inaccurate, and the adjusted net asset value per share is not a representation or guarantee of the value a participating shareholder will be able to realize. Adjustednet asset value per share is calculated as adjusted net asset value divided by the number of participating shares outstanding at the end of the reporting period. The discount to adjusted net asset value ("discount to NAV" or "NAV discount") is defined as the percentage difference (expressed in relation to the adjusted net asset value) between the market capitalization of the Corporation and the adjusted net asset value.

Adjusted net earnings attributable to participating shareholders, fee-related earnings, adjusted net asset value, gross asset value, adjusted net earnings per share, discount to adjusted net asset value, 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. Refer to the section entitled "Non-IFRS Financial Measures" in Part A of the current MD&A located under the Corporation's profile on SEDAR+ atwww.sedarplus.cafor further explanations of their uses and specifically the sub-sections entitled "Adjusted Net Earnings", "Adjusted Net AssetValue"and "Fee-related earnings" included in section entitled "Reconciliations of IFRS and Non-IFRS Financial Measures" for the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS, including those used in calculating non-IFRS ratios, which further explanations and reconciliations are incorporated herein by reference.

Other Measures

This presentation also includes other measures used to discuss activities of theCorporation'sconsolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to,"assetsundermanagement", "assetsunderadministration", "assetsunder management andadvisement", "assetsunder management and advisement including strategicinvestments", "averageassets under management andadvisement", "bookvalue per participatingshare", "carried interest", "fee-bearingcapital", "market capitalization", "netassetvalue", "netcarriedinterest", "unfunded commitments"and"weightedaverage management feerate". As well, the presentation of the holding company is used to present and analyze the financial position and cash flows of Power Corporation as a holding company. Refer to the section"Other Measures"in Part A of the current MD&A, which can be located in the Corporation's profile on SEDAR+ atwww.sedarplus.ca, for definitions of such measures, which definitions are incorporated herein by reference.

Assets under management of investment platforms include: (i) Net asset value of the investment funds and co-investment vehicles managed, including unfunded commitments and permanent leverage; (ii) Gross asset value of investment funds managed within the real estate platform; and (iii) Fair value of assets managed on behalf of the Corporation and clients by asset managers controlled within the investment platforms, including assets managed through a separately managed account. Funded AUM represents AUM less unfunded commitments.

Fee-bearing capital includes: (i) Total capital commitments of venture capital, private equity, and certain private credit funds during the investment period; (ii) Net invested capital of private credit funds, funds which have completed their investment period, separately managed accounts within the creditplatforms and certain co-investment vehicles; (iii) Net asset value of Power Sustainable China, Power Sustainable Energy Infrastructure including direct investments in energy assets, and funds within the real estate platform; and (iv) Invested capital or gross asset value of assets managed through separately managed accounts within the real estate platform.

Clarifications on Adjusted Net Asset Value

(i) TheCorporation'sshare ofGBL'sreported net asset value was $3.9 billion(€2.6 billion) at December 31, 2024; (ii) The management company of Sagard is presented at its fair value. The management company of Power Sustainable is presented at its carrying value; (iii) Sagard includes theCorporation'sinvestments in Portage Ventures I, Portage Ventures II and Wealthsimple, held by Power Financial; (iv) 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.

Abbreviations

The following abbreviations are used throughout this presentation:

MassMutual MD&A NAV or Net Asset Value NCIB Northleaf Parjointco Peak Performance Equity Management or PEM Personal Capital Power Corporation, PCC, Power or the Corporation Power Financial or PFC Power Sustainable Power Sustainable China or Sustainable China Power Sustainable Infrastructure Credit Power Sustainable Lios or LiosPrudential PSEIP PSM Putnam QGOF Rawlings Rockefeller ROE S&P Sagard SGSSHMI Standalone businesses TSR TSX Value Partners Wealthsimple Webhelp WHO

Massachusetts Mutual Life Insurance CompanyManagement's Discussion & AnalysisAdjusted net asset value Normal course issuer bid Northleaf Capital Partners Parjointco SA Peak Achievement Athletics Inc.Performance Equity Management, LLC Personal Capital Corporation Power Corporation of Canada Power Financial Corporation Power Sustainable Capital Inc. Power Sustainable Investment Management Inc. Power Sustainable Infrastructure Credit Credit Manager, L.P. Power Sustainable Lios Inc. Prudential Financial, Inc. Power Sustainable Energy Infrastructure Partnership Power Sustainable Manager Inc. Putnam U.S. Holdings I, LLC Quadrus Group of Funds Rawlings Sporting Goods Company Inc. Rockefeller Capital Management Retuon equity Standard & Poor'sSagard Holdings Inc. SGS S.A. Sagard Holdings Management Inc.Lion, LMPG and Peak Total shareholder retuToronto Stock Exchange Value Partners Inc. Wealthsimple Financial Corp. Webhelp Group World Health Organization

Reference information

Websites	Recent and Upcoming Events	Date
	www.powercorporation.com	Q4 2024 Conference Call Q4 2024 Earnings Release	March 20, 2025 March 19, 2025
	www.greatwestlifeco.com	Investor Day 2025 RBC Capital Markets Financial Institutions Conference Q4 2024 Conference Call Q4 2024 Earnings Release	April 2, 2025 March 5, 2025 February 6, 2025 February 5, 2025
	www.igmfinancial.com	Q4 2024 Conference Call Q4 2024 Earnings Release	February 7, 2025 February 6, 2025
	www.gbl.com	2024 Results Presentation2024 Annual Results Release	March 14, 2025 March 13, 2025
	www.sagard.com
	www.powersustainable.com

Table of contents

• •Power Corporation Overview

• •Value Creation Strategy

• •Appendix: Recent Transaction Activity

Power Corporation Overview

Power Corporation is an international management company focused on financial services

$31.6BILLION

Market Capitalization

5.0%

Dividend Yield[1]

68.2%[4]

62.2%[4]

16.5%[5]

50.8%[6]

74.7%[6]

$2.79BILLION

2024 Net Earnings[2]

$48.8BILLION

$10.6BILLION

$2.97BILLION

Market Capitalization[7]

Market Capitalization[7]

Market Capitalization[7]

ALTERNATIVE ASSET MANAGEMENT BUSINESSES

2024 Adjusted

Net Earnings[2,3]

Note: Market data as of March 19, 2025; figures in Canadian dollars.

• [1] Calculated as the annualized dividend based on the dividend declared on March 19, 2025 divided by the March 19, 2025 share price.

• [2] From continuing operations attributable to participating shareholders.

• [3]In 2024, the Corporation modified the definition of adjusted net earnings. Refer to the "Non-IFRS Financial Measures" section at the beginning of this presentation for more information.

• [4] As of December 31, 2024. Power held 68.2% of Great-West; IGM held an additional 2.4% of Great-West. Power held 62.2% of IGM; Great-West held an additional 3.9% of IGM.

• [5] Through a strategic partnership with the Frère family, Power holds a 50% interest in Parjointco, which held a 32.9% indirect (47.0% of the voting rights) controlling interest in GBL as of December 31, 2024.

• [6] Interest in SHMI and PSM as of December 31, 2024.

• [7]Refer to the "Other Measures" section at the beginning of this presentation for more information.

Adjusted net asset value ("NAV" or "Net asset value")

NAV per share[1]was $60.44 and book value per participating share[2]was $35.56 at December 31, 2024

Contribution to Gross Asset Value

($ billions, except per share amounts)

17%

NAV FOCUSED

83%

EARNINGSFOCUSED

Dec. 31, 2024

% of Gross Asset Value

• 4.8%Other

• 7.5%Sagard and Power Sustainable

Publicly

GBL

Traded Operating Companies[3]

Great-West IGM

$30.367.7%

6.815.2%

GBL

2.24.8%

IGM

39.287.8%

Alt. Asset Investment Platforms[4]

Sagard

2.24.9%

Power Sustainable

1.22.6%

3.37.5%

Other

Great-West

Standalone businesses Other assets and investments Cash and cash equivalents

0.10.2%

0.51.0%

1.63.6%

Liabilities and preferred shares

NAV[1]

(5.8)$39.0

Shares outstanding (millions)

644.8

• [1] Adjusted net asset value is a non-IFRS financial measure and Adjusted net asset value per share is a non-IFRS ratio. Refer to the "Non-IFRS Financial Measures" and "Clarifications on Adjusted Net Asset Value" sections at the beginning of this presentation for more information.

• [2]Refer to the "Other Measures" section at the beginning of this presentation for more information.

• [3] Based on December 31, 2024 closing price of $47.67 for Great-West, $45.91 for IGM and €66.05 for GBL.

• [4]The alternative asset investment platforms includes asset management businesses and Power's proprietary capital. The management business of Sagard is presented at its fair value and the management business of Power Sustainable is presented at its carrying value.

Net and adjusted net earnings from continuing operations

Power's earnings underscored by stable recurring earnings contribution from Great-West and IGM, with other investment businesses and investments focused on value appreciation

($ in millions, except per share amounts)

2024 2023

Net and adjusted net earnings[1]

Great-West

IGM

Effect of consolidation[2]

2,8582,500

586524

(65)(23)

3,3793,001

GBL[1]

Sagard[1,3]

Power Sustainable[1,3]

Standalone businesses[1,4]

Corporate operations and Other[1,4,5]

75111

6511

(136)(86)

(64)(15)

(348)(351)

Adjusted net earnings from continuing operations[6]

Adjustments[7]

2,9712,671

(179)(389)

Net earnings from continuing operations[6]

2,792

2,282

Earnings per share - basic[6]

Adjusted net earnings from continuing operations

Adjustments

Net earnings from continuing operations

Average shares outstanding (in millions)

4.58 (0.27) 4.31648.1

4.04 (0.59) 3.45662.0

10

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PCC - Power Corporation of Canada published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 12:35:01.240.