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GROUPE BRUXELLES LAMBERT (GBL)

• GBL reported a net asset value ⁵ of €15.4 billion or €111.17 per share at March 31, 2025, compared with €15.7 billion or €113.30 per share at December 31, 2024.

• In the first quarter of 2025, GBL completed a total of €110 million of share buybacks, and subsequent to quarter-end cancelled 5.2 million treasury shares.

 SAGARD HOLDINGS INC. (SAGARD) AND POWER SUSTAINABLE CAPITAL INC. (POWER SUSTAINABLE)

• Sagard and GBL completed a partnership transaction whereby GBL acquired a 5% interest in Sagard Holdings Management Inc. (SHMI) and committed to invest €250 million in Sagard strategies over the next five years. This partnership reinforces Sagard's long-term growth strategy, strengthening its capital base as well as solidifying GBL's relationship as an anchor LP in certain strategies.

• In April 2025, SHMI announced the acquisition of a strategic interest in BEX Capital (BEX) ⁷, a specialized secondaries investment firm with over US$2 billion of assets under management ⁵, marking a significant step in its expansion into private equity secondaries.

• In May 2025, Power Sustainable announced the launch of its fourth investment strategy, Power Sustainable Decarbonization Private Equity, securing up to US$330 million of commitments for the new middle-market private equity strategy.

First Quarter

Net earnings from continuing operations attributable to participating shareholders were $689 million or $1.07 per share, compared with $758 million or $1.17 per share in 2024.

Adjusted net earnings from continuing operations attributable to participating shareholders ¹ were $787 million or $1.22 per share, compared with $710 million or $1.09 per share in 2024.

Net earnings attributable to participating shareholders were $689 million or $1.07 per share, compared with $709 million or
$1.09 per share in 2024.

^{Contributions to Power Corporation's Earnings from Continuing Operations}

Publicly traded operating companies: contribution to net earnings from continuing operations was $752 million, a decrease of 14.3% from the first quarter of 2024, and contribution to adjusted net earnings from continuing operations was $850 million, an increase of 0.6% from the first quarter of 2024:

Lifeco: contribution to net earnings decreased by $115 million or 16.4% and contribution to adjusted net earnings increased by $37 million or 5.6%.

IGM: contribution to net earnings and adjusted net earnings increased by $8 million or 5.8% and by $9 million or 6.4%, respectively.

GBL: contribution to net earnings of $25 million and to adjusted net earnings of $3 million in the first quarter of 2025, compared with a contribution to net earnings and adjusted net earnings of $54 million in the first quarter of 2024.

Sagard and Power Sustainable: Sagard had a contribution to net earnings and adjusted net earnings of $37 million and Power Sustainable's contribution to net earnings and adjusted net earnings were negative $15 million and negative $3 million, respectively.

 

Adjustments in the first quarter of 2025, excluded from adjusted net earnings from continuing operations, were a negative net impact to earnings of $98 million or $0.15 per share, mainly related to the Corporation's share of Adjustments of Lifeco, partially offset by Adjustments identified on the contribution from GBL. In the first quarter of 2024, Adjustments were a positive net impact to earnings of $48 million or $0.08 per share, mainly related to the Corporation's share of Adjustments of Lifeco and Power Sustainable.

Great-West Lifeco, IGM Financial and Groupe Bruxelles Lambert
Results for the quarter ended March 31, 2025

GREAT-WEST LIFECO INC. 

First Quarter

Net earnings from continuing operations attributable to common shareholders were $860 million or $0.92 per share, compared with $1,031 million or $1.10 per share in 2024.

Adjusted net earnings from continuing operations ¹ attributable to common shareholders were $1,030 million or $1.11 per share, compared with $978 million or $1.05 per share in 2024.

Net earnings attributable to common shareholders were $860 million or $0.92 per share, compared with $960 million or $1.03 per share in 2024.

Adjustments in the first quarter of 2025, excluded from adjusted net earnings, were a net negative impact of $170 million, compared with a net positive impact of $53 million in 2024. Lifeco's Adjustments consisted of:

• Market experience relative to expectations of negative $91 million;

• Assumption changes and management actions of negative $32 million;

• Amortization of acquisition-related finite life intangible assets of negative $37 million; and

• Business transformation impacts of negative $10 million.

IGM FINANCIAL INC.

First Quarter

Net earnings available to common shareholders were $233.8 million or $0.98 per share, compared with $223.4 million or $0.94 per share in 2024.

Adjusted net earnings attributable to common shareholders were $237.8 million or $1.00 per share, compared with $224.5 million or $0.94 per share in 2024.

Assets under management and advisement (AUM&A) ² at March 31, 2025 were $275.0 billion, an increase of 1.7% from December 31, 2024 and 9.1% from March 31, 2024. Net inflows ³ were $4.2 billion in the first quarter of 2025, compared with net outflows of $128 million in 2024.

GROUPE BRUXELLES LAMBERT

First Quarter

GBL reported net earnings of €94 million, compared with net earnings of €194 million in 2024. The contribution to the adjusted net earnings of the Corporation excludes an Adjustment of $22 million related to the Corporation's proportionate share of the earnings impact of Affidea Group B.V., a controlled and consolidated investment of GBL, resulting from the renegotiation of its debt conditions.

GBL reported a net asset value ² of €15,385 million or €111.17 per share at March 31, 2025, compared with €15,681 million or €113.30 per share at December 31, 2024.

Sagard and Power Sustainable
Results for the quarter ended March 31, 2025

First Quarter

Net earnings of the alternative asset investment platforms were $22 million, compared with a net loss of $5 million in 2024. The adjusted net earnings of the alternative asset investment platforms were $34 million, compared with an adjusted net loss of $30 million in 2024.

The adjusted net earnings is comprised of:

• A positive contribution of $37 million from Sagard comprised of a negative contribution of $4 million from asset management activities and a positive contribution of $41 million from investing activities; and

• A negative contribution of $3 million from Power Sustainable comprised of a negative contribution of $6 million from asset management activities and a positive contribution of $3 million from investing activities. Adjustments in the first quarter of 2025, excluded from adjusted net earnings, were a negative impact of $12 million, compared with a positive impact of $25 million in 2024. Power Sustainable Adjustments consisted primarily of a revaluation of non-controlling interests (NCI) liabilities ¹ within the Power Sustainable Energy Infrastructure Partnership (PSEIP) and other market-related impacts.

Summary of assets under management ² (including unfunded commitments):

Adjusted Net Asset Value and Participating Shareholders' Equity
At March 31, 2025

Adjusted Net Asset Value

The Corporation's adjusted net asset value per share was $68.99 at March 31, 2025, compared with $60.44 at December 31, 2024, an increase of 14.1%.

 

Participating Shareholders' Equity

The Corporation's book value per participating share was $36.10 at March 31, 2025, compared with $35.56 at December 31, 2024, an increase of 1.5%.

Dividend on Power Corporation Participating Shares

The Board of Directors declared a quarterly dividend of 61.25 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable August 1, 2025 to shareholders of record June 30, 2025.

Dividends on Power Corporation Non-Participating Preferred Shares

The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable July 15, 2025 to shareholders of record at June 23, 2025:

Investor Information

About Power Corporation

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 March 31, 2025, Power Corporation held the following economic interests:

Earnings Summary

^{Contribution to Adjusted Net Earnings and Net Earnings}

Sagard and Power Sustainable

Corporate operations and Other

BASIS OF PRESENTATION

The condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this news release, unless otherwise noted.

NON-IFRS FINANCIAL MEASURES 

Net earnings from continuing operations attributable to participating shareholders are comprised of:

• Adjusted net earnings from continuing operations (adjusted net earnings) attributable to participating shareholders; and

• Adjustments, which include the after-tax impact of any item that in management's judgment, including those identified by management of Lifeco and IGM, would make the period-over-period comparison of results from operations less meaningful. Includes the Corporation's share of Lifeco's impact 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; 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 management of 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 (or adjusted net earnings) represents net... earnings from continuing operations excluding Adjustments. In 2024, the Corporation modified the definition of adjusted net earnings, a non-IFRS earnings measure, to better reflect the underlying performance of the Corporation. 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 the Corporation's investing activities and the standalone businesses. The definition was also expanded to include impacts related to remeasurements due to market changes that result in an accounting mismatch. The comparative periods have been restated to conform with the current definition.

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 readers in their analysis of the results of the Corporation. Adjusted net earnings, as defined by the Corporation, assists the reader in the comparison of the current period's results to those of previous periods as it reflects management's view of the operating performance of the Corporation and its subsidiaries, excluding items that are not considered to be part of the underlying business results.

Fee-related earnings is presented for Sagard and Power Sustainable and includes management fees and fee-related performance revenues earned across all asset classes, less investment platform expenses which include i) fee-related compensation including salary, bonus, and benefits, and ii) operating expenses. Fee-related performance revenues represents the realized portion of performance revenues from perpetual capital vehicles that are i) measured and expected to be received on a recurring basis, ii) not dependent on realization events from underlying investments, and iii) not subject to clawback. Fee-related earnings is presented on a gross pre-tax basis, including non-controlling interests. Fee-related earnings excludes i) share-based compensation expenses, ii) amortization of acquisition-related finite life intangible assets, iii) foreign exchange-related gains and losses, iv) net interest, and v) other items that in management's judgment are not indicative of underlying operating performance of the alternative asset investment platforms, which include restructuring costs, transaction and integration costs related to business acquisitions and certain non-recurring material items. Management uses this measure to assess the profitability of the asset management activities of the alternative asset investment platforms. This financial measure provides insight as to whether recurring revenues from management fees and fee-related performance revenues, which are not based on future realization events, are sufficient to cover associated operating expenses.

Adjusted net asset value is commonly used by holding companies to assess their value. Adjusted net asset value represents the fair value of the participating shareholders' 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 less their net debt and preferred shares. The investments held in public entities (including Lifeco, IGM and GBL) are measured at their market value and investments in private entities and investment funds are measured at management's estimate of 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. This measure presents the fair value of the participating shareholders' equity of the holding company, and assists the reader in determining or comparing the fair value of investments held by the holding company or its overall fair value.

Adjusted net earnings attributable to participating shareholders, fee-related earnings, adjusted net asset value, gross asset value, adjusted net earnings from continuing operations per share (adjusted net earnings per share) 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.

Presentation of Holding Company Activities

The Corporation's reportable segments include Lifeco, IGM and GBL, which represent the Corporation's investments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect Power Corporation's management structure and internal financial reporting. The Corporation evaluates its performance based on the operating segment's contribution 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 Lifeco, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holding company's assets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections Financial Position and Cash Flows of the Corporation's most recent MD&A present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 20 of the Interim Consolidated Financial Statements. This presentation is useful to the reader as it presents the holding company's (parent) results separately from the results of its consolidated operating subsidiaries.

 

RECONCILIATIONS OF IFRS AND NON-IFRS FINANCIAL MEASURES

Power Corporation

Adjusted net earnings from continuing operations

Adjustments (excluded from Adjusted net earnings)

Adjusted net asset value

The following table presents a reconciliation of the participating shareholders' equity reported in accordance with IFRS to the adjusted net asset value, a non-IFRS financial measure:

The Corporation's adjusted net asset value per share was $68.99 at March 31, 2025, compared with $60.44 at December 31, 2024, representing an increase of 14.1%. The Corporation's book value per participating share was $36.10 at March 31, 2025, compared with $35.56 at December 31, 2024, representing an increase of 1.5%.

This news release also contains other non-IFRS financial measures which are publicly disclosed by the Corporation's subsidiaries including adjusted net earnings and adjusted net earnings per share. The section below includes the description and reconciliation of the non-IFRS financial measures included in this news release as reported by the Corporation's subsidiaries. The information below is derived from Lifeco's and IGM's first quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from SEDAR+ (www.sedarplus.ca) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com.

Lifeco 

Adjusted net earnings (loss) from continuing operations attributable to Lifeco's common shareholders

Adjusted net earnings (loss) from continuing operations ¹ (adjusted net earnings (loss)) reflects Lifeco management's view of the underlying business performance of Lifeco and provides an alternate measure to understand the underlying business performance compared with IFRS net earnings. Adjusted net earnings (loss) excludes the following items from IFRS-reported net earnings:

• 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;

• Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs;

• Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business, and net earnings (loss) from discontinued operations;

• The direct equity and interest rate impacts on the measurement of surplus assets and liabilities;

• Amortization of acquisition-related finite life intangible assets; and

• Other items that, when removed, assist in explaining Lifeco's underlying business performance.

IGM Financial 

Adjusted net earnings attributable to IGM's common shareholders

Adjusted net earnings attributable to common shareholders excludes Adjustments, which includes the after‐tax impact of any item that management of IGM considers to be of a non‐recurring nature, or that could make the period‐over‐period comparison of results from operations less meaningful. Effective in the first quarter of 2024, adjusted net earnings also excludes IGM's proportionate share of items that Lifeco excludes from its IFRS-reported net earnings in arriving at Lifeco's base earnings.

OTHER MEASURES 

This news release and other continuous disclosure documents also include other measures used to discuss activities of the Corporation, its consolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to, "assets under management", "assets under administration", "assets under management and advisement", "assets under management and advisement including strategic investments", "book value per participating share", "carried interest", "net asset value", and "unfunded commitments". Refer to the section "Other Measures" in the Corporation's most recent MD&A, which can be located in the Corporation's profile on SEDAR+ at www.sedarplus.ca, for definitions of such measures, which definitions are incorporated herein by reference.

ELIGIBLE DIVIDENDS 

For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above dividends on the Corporation's preferred shares (including the Participating Preferred Shares) and Subordinate Voting Shares are eligible dividends.

FORWARD-LOOKING STATEMENTS 

Certain statements in this news release, 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 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 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, capital commitments to strategies of the investment platforms, the expected timing of SHMI's investment in BEX, and GBL's investment in SHMI and the expected impacts. 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, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government administrations, regulation, legislation and policies, changes in tax laws, the impact of trade relations and ongoing trade tensions, including the threat of tariffs and other governmental actions, as well as retaliatory actions, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the factors identified by such subsidiaries in their respective MD&A.

The 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, and that strategic transactions, acquisitions, divestitures or other growth or optimization strategies will be completed on expected terms, including that any required approvals will be received when and on such terms as are expected, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of risks and uncertainties in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, that the risks identified by such subsidiaries in their respective MD&A and Annual Information Form are not expected to have a material impact on the Corporation. 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 annual MD&A and subsequent interim MD&A and Annual Information Form, filed with the securities regulatory authorities in Canada and available at www.sedarplus.ca.

SOURCE Power Corporation of Canada

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