Power Corporation of Canada (POW) 25th Annual Scotiabank Financials Summit 2024 summary

Progress since reorganization

• Simplified operations to focus on financial services and strengthened core businesses, leading to improved earnings consistency and shareholder returns.

• Raised significant capital in alternative asset management and enhanced market communication and investor outreach.

• Transitioned from a phase of rapid deal-making to a focus on execution and earnings growth.

• Confident in sustaining strong returns despite market uncertainties.

Industry trends and growth opportunities

• Digital advice platforms are expanding access to wealth management for mass market clients, leveraging technology and scale.

• High net worth segment presents growth potential, especially with anticipated wealth transfer from retiring baby boomers.

• Increasing demand for income security products as defined benefit plans decline, creating insurance opportunities.

• U.S. market, particularly through Empower, remains the top near-term growth priority.

Headwinds and mitigation strategies

• Fee compression, regulatory costs, and demographic shifts (e.g., baby boomers drawing down savings) are key challenges.

• Scale, efficiency, and market consolidation are critical to offsetting these headwinds.