Readers are referred to the sections Non-IFRS Financial Measures and Forward-Looking Statements later in this release. All figures are expressed in Canadian dollars unless otherwise noted. MONTRÉAL, May 8, 2024 /CNW/ - Power Corporation of Canada (Power Corporation or the Corporation) (TSX:POW) (TSX:POW) today reported earnings results for the three months ended March 31, 2024. Power CorporationConsolidated results for the period ended March 31, 2024 HIGHLIGHTS POWER CORPORATION Net earnings from continuing operations [1] for the first quarter of 2024 were $758 million or $1.17 per share [2], compared with $326 million or $0.49 per share in 2023. Adjusted net earnings from continuing operations [1][3][4] were $727 million or $1.12 per share, compared with $588 million or $0.88 per share in the first quarter of 2023. Adjusted net asset value per share [3] was $53.10 at March 31, 2024, compared with $53.53 at December 31, 2023. The Corporation's book value per share [5] was $33.04 at March 31, 2024, compared with $32.49 at December 31, 2023. The Corporation purchased for cancellation 2.5 million subordinate voting shares for a total of $97 million in the first quarter of 2024. Contribution to net earnings from continuing operations from the publicly traded operating companies was $877 million in the first quarter of 2024, compared with $548 million in 2023. Contribution to adjusted net earnings from continuing operations from the publicly traded operating companies was $869 million in the first quarter of 2024, compared with $711 million in 2023. GREAT-WEST LIFECO INC. (LIFECO) First quarter net earnings from continuing operations were $1,031 million, compared with $614 million in the first quarter of 2023. Adjusted net earnings from continuing operations [6] were $1,012 million, compared with $826 million in the first quarter of 2023. First quarter adjusted net earnings reflect strong contributions to earnings growth from all four Lifeco segments, including the highest quarterly adjusted net earnings to date from Empower [7]. IGM FINANCIAL INC. (IGM OR IGM FINANCIAL) First quarter net earnings were $223.4 million, compared with $381.3 million in the first quarter of 2023.Adjusted net earnings [3] were $224.5 million, compared with $206.3 million in the first quarter of 2023. Assets under management and advisement including strategic investments [5] were $422.3 billion at March 31, 2024, compared with $390.2 billion at December 31, 2023 and $349.7 billion at March 31, 2023. GROUPE BRUXELLES LAMBERT (GBL) GBL reported a net asset value [5] of €17.0 billion at March 31, 2024, compared with €16.7 billion at December 31, 2023. In the first quarter of 2024, GBL completed a total of €47 million of share buybacks and subsequent to quarter-end cancelled 8.3 million treasury shares. SAGARD HOLDINGS INC. (SAGARD) AND POWER SUSTAINABLE CAPITAL INC. (POWER SUSTAINABLE) Sagard completed, in the first quarter, the previously announced strategic investments in Performance Equity Management, LLC, and HalseyPoint Asset Management, LLC, broadening Sagard's product offering. Power Sustainable and Lifeco announced, on May 6, 2024, they had agreed to enter into a long-term strategic partnership, which includes a minority shareholding in Power Sustainable's subsidiary, Power Sustainable Manager Inc. The strategic partnership will enable Power Sustainable to accelerate its growth and market penetration in sustainable private equity and infrastructure. [1] Attributable to participating shareholders. [2] All per share amounts are per participating share of the Corporation. [3] Adjusted net earnings from continuing operations, adjusted net earnings reported by IGM and adjusted net asset value are non-IFRS financial measures. Adjusted net earnings from continuing operations per share and adjusted net asset value per share are non-IFRS ratios. See the Non-IFRS Financial Measures section later in this news release.    [4]   Effective the first quarter of 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect this change. [5] See the Other Measures section later in this news release. [6] Defined as "base earnings" by Lifeco, a non-IFRS financial measure; see the Non-IFRS Financial Measures section later in this news release. [7] Empower Annuity Insurance Company of America (Empower). First Quarter Net earnings from continuing operations attributable to participating shareholders were $758 million or $1.17 per share, compared with $326 million or $0.49 per share in 2023. Adjusted net earnings from continuing operations attributable to participating shareholders [1] were $727 million or $1.12 per share, compared with $588 million or $0.88 per share in 2023. Net earnings attributable to participating shareholders were $709 million or $1.09 per share, compared with $313 million or $0.47 per share in 2023. Contributions to Power Corporation's Earnings from Continuing Operations (in millions of dollars, except per share amounts) Adjusted Net Earnings Net Earnings 2024 2023 2024 2023 Lifeco [2] 689 561 702 417 IGM [2] 140 128 139 237 GBL 54 19 54 19 Effect of consolidation [3] (14) 3 (18) (125) Publicly traded operating companies 869 711 877 548 Sagard and Power Sustainable [4] (28) (43) (5) (88) ChinaAMC [5] − 2 − (52) Other investments and standalone businesses (9) 16 (9) 16 832 686 863 424 Corporate operations and Other [6] (105) (98) (105) (98) 727 588 758 326 Per participating share 1.12 0.88 1.17 0.49 Average shares outstanding (in millions) 650.6 666.8 650.6 666.8 Publicly traded operating companies: contribution to net earnings from continuing operations was $877 million and to adjusted net earnings from continuing operations was $869 million, representing an increase of 60.0% and 22.2%, respectively, from the first quarter of 2023: Lifeco: contribution to net and adjusted net earnings increased by 68.3% and 22.8%, respectively. On January 1, 2024, Lifeco completed the sale of Putnam [7]; the results of Putnam have been classified as discontinued operations, representing a net negative contribution to net earnings of $49 million which represents the Corporation's share of the gain recognized on disposal as well as transaction costs recognized in the first quarter. IGM: contribution to net earnings decreased by 41.4% and the contribution to adjusted net earnings increased by 9.4%. GBL: contribution to net earnings of $54 million in the first quarter of 2024. Sagard and Power Sustainable: Sagard had a positive contribution to net earnings and adjusted net earnings of $5 million. The contribution to net earnings and adjusted net earnings from Power Sustainable were negative $10 million and $33 million, respectively. Adjustments in the first quarter of 2024, excluded from adjusted net earnings from continuing operations, were a positive net impact to earnings of $31 million or $0.05 per share, mainly related to the Corporation's share of adjustments of Lifeco and Power Sustainable. In the first quarter of 2023, Adjustments were a negative net impact to earnings of $262 million or $0.39 per share, mainly related to the Corporation's share of Lifeco's adjustments and charges incurred by the Corporation related to the combination of the group's interest in ChinaAMC under IGM, including transaction costs and income taxes. [1] A non-IFRS financial measure; see the Non-IFRS Financial Measures section later in this news release. [2] Contribution based on earnings reported by Lifeco and IGM. [3] Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent Management's Discussion and Analysis (MD&A) for additional information.      [4] Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries. [5] China Asset Management Co., Ltd. (ChinaAMC). [6] Includes operating and other expenses, dividends on non-participating shares of the Corporation and Power Financial Corporation (Power Financial) corporate operations; refer to the Earnings Summary below. [7] Putnam U.S. Holdings I, LLC (Putnam). Great-West Lifeco, IGM Financial and Groupe Bruxelles LambertResults for the quarter ended March 31, 2024 The information below is derived from Lifeco 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. The information below related to GBL is derived from publicly disclosed information, as issued by GBL in its first quarter press release at March 31, 2024. Further information on GBL's results is available on its website at www.gbl.com. GREAT-WEST LIFECO INC. First Quarter Net earnings from continuing operations attributable to common shareholders were $1,031 million or $1.10 per share, compared with $614 million or $0.66 per share in 2023. Adjusted net earnings from continuing operations [1] attributable to common shareholders were $1,012 million or $1.09 per share, compared with $826 million or $0.89 per share in 2023. Net earnings attributable to common shareholders were $960 million or $1.03 per share, compared with $595 million or $0.64 per share in 2023. Adjustments in the first quarter of 2024, excluded from adjusted net earnings, were a net positive impact of $19 million, compared with a net negative impact of $212 million in 2023. Lifeco's adjustments consisted of: Market experience relative to expectations of positive $107 million.Partially offset by: Assumption changes and management actions of negative $1 million; A negative earnings impact from business transformation impacts of $49 million; and Amortization of acquisition-related finite life intangible assets of $38 million. IGM FINANCIAL INC. First Quarter Net earnings available to common shareholders were $223.4 million or $0.94 per share, compared with $381.3 million or $1.60 per share in 2023. Adjusted net earnings attributable to common shareholders were $224.5 million or $0.94 per share, compared with $206.3 million or $0.87 per share in 2023. Assets under management and advisement (AUM&A) [2][3] at March 31, 2024 were $252.2 billion, an increase of 5.0% from December 31, 2023 and an increase of 7.7% from the first quarter of 2023. GROUPE BRUXELLES LAMBERT First Quarter GBL reported net earnings of €194 million, compared with net earnings of €77 million in 2023. GBL reported a net asset value [2] of €16,998 million at March 31, 2024, or €115.87 per share, compared with €16,671 million or €113.64 per share at December 31, 2023. [1] Defined as "base earnings" by Lifeco. For additional information, refer to the Non-IFRS Financial Measures section later in this news release. [2] See the Other Measures section later in this news release. [3] Comparative information presented excludes AUM&A of Investment Planning Counsel Inc. (IPC), presented as discontinued operations by IGM. Sagard and Power SustainableResults for the quarter ended March 31, 2024 Sagard and Power Sustainable comprise the results of the Corporation's alternative asset investment platforms, which includes income earned from asset management and investing activities. Asset management activities includes fee-related earnings (a non-IFRS financial measure, see the Non-IFRS Financial Measures section later in this news release), which is comprised of management fees less investment platform expenses. Asset management activities also includes carried interest and income from other management activities. Investing activities comprises income earned on the capital invested by the Corporation (proprietary capital) in the investment funds managed by each platform and the share of earnings (losses) of controlled and consolidated subsidiaries held within the alternative asset investment platforms. For additional information, refer to the table later in this news release. First Quarter Net loss of the alternative asset investment platforms was $5 million, compared with a net loss of $88 million in 2023. The adjusted net loss of the alternative asset investment platforms was $28 million, compared with an adjusted net loss of $43 million in 2023. The adjusted net loss is comprised of: A positive contribution of $5 million from Sagard comprised of a negative contribution of $1 million from asset management activities and a positive contribution of $6 million from investing activities; A negative contribution of $33 million from Power Sustainable comprised of a negative contribution of $14 million from asset management activities and a negative contribution of $19 million from investing activities. Adjustments in the first quarter of 2024, excluded from adjusted net earnings, were a net positive impact of $23 million, compared with a net negative impact of $45 million in 2023. Power Sustainable adjustments consisted of: i.   A recovery of $54 million related to the closing of Power Sustainable China, a foreign operation, resulting from the reclassification of the related cumulative translation adjustment to net earnings.Partially offset by:ii.   Restructuring charges of $12 million related to the realignment of the strategies within its management activities; andiii.   Fair value increases within the Power Sustainable Energy Infrastructure Partnership (PSEIP) resulting in a revaluation of non-controlling interests liabilities [1] of $19 million. Summary of assets under management [2] (including unfunded commitments): (in billions of dollars) March 31, 2024 March 31, 2023 Sagard [3] 32.6 18.0 Power Sustainable 3.8 3.5 Total 36.4 21.5 Percentage of third-party and associated companies 92 % 87 % [1] The Corporation controls and consolidates the activities of PSEIP on a historical cost basis; however, limited partner equity interests held by third parties have redemption features and are classified as a financial liability which are remeasured at their redemption value. The net asset value [2] of PSEIP was $1,431 million at March 31, 2024, compared with $1,342 million at December 31, 2023. [2] See the Other Measures section later in this news release. [3] Includes ownership in Wealthsimple Financial Corp. (Wealthsimple) valued at $1.3 billion at March 31, 2024 ($0.9 billion at March 31, 2023) and excludes assets under management of Sagard's wealth management business. In the first quarter, Sagard acquired a controlling interest of Performance Equity Management, LLC, representing assets under management of $12.0 billion at March 31, 2024. Other Investments and Standalone BusinessesResults for the quarter ended March 31, 2024 Other investments and standalone businesses includes the Corporation's investments in investment funds and the share of earnings (losses) of standalone businesses. First Quarter The net loss of the other investments and standalone businesses was $9 million, compared with net earnings of $16 million in 2023. STANDALONE BUSINESSES The net loss of the standalone businesses was $32 million, compared with a net loss of $5 million in 2023. The net loss in the first quarter of 2024 includes a non-cash impairment charge of $17 million after tax ($20 million pre-tax) on the Corporation's investment in The Lion Electric Company (Lion) due to a decline in market value at March 31, 2024. At March 31, 2024, the fair value of standalone businesses was $0.8 billion, same as at March 31, 2023. Adjusted Net Asset Value and Participating Shareholders' EquityAt March 31, 2024 Adjusted Net Asset Value Adjusted net asset value is presented for Power Corporation and represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company (the gross asset value) less their net debt and preferred shares. Refer to the Non-IFRS Financial Measures section later in this news release for a description and reconciliation. The Corporation's adjusted net asset value per share was $53.10 at March 31, 2024, compared with $53.53 at December 31, 2023, representing a decrease of 0.8%. (in millions of dollars, except per share amounts) March 31, 2024 December 31, 2023 Variation % Publicly traded operating companies Lifeco  27,528 27,871 (1) IGM 5,167 5,179 − GBL  2,260 2,295 (2) 34,955 35,345 (1) Alternative asset investment platforms Sagard [1] 1,427 1,327 8 Power Sustainable [1][2] 1,033 1,499 (31) 2,460 2,826 (13) Other Standalone businesses [3] 795 800 (1) Other assets and investments [2] 404 391 3 Cash and cash equivalents [2] 1,577 1,218 29 2,776 2,409 15 Gross asset value 40,191 40,580 (1) Liabilities and preferred shares (5,678) (5,663) − Adjusted net asset value 34,513 34,917 (1) Shares outstanding (in millions) 650.0 652.2 Adjusted net asset value per share 53.10 53.53 (1) [1] Includes the management companies as well as the fair value of proprietary capital invested in assets managed within the platforms. The management company of Sagard is presented at its fair value and the management company of Power Sustainable is presented at its carrying value. [2] At March 31, 2024, the Corporation's investments held within Power Sustainable China have been included, according to their nature, within cash and cash equivalents or other assets and investments as a result of the wind-down of the strategy. [3] Includes Lion, LMPG Inc. (LMPG) and Peak Achievement Athletics Inc. (Peak). Power Corporation's Ownership in Publicly Traded Operating Companies Shares held [1](in millions) Share price Ownership [1](%) March 31, 2024 December 31, 2023 Lifeco       68.1 635.5 $43.32 $43.86 IGM 62.2 147.9 $34.93 $35.01 GBL [2] 15.5 22.8 €70.06 €71.22 [1] At March 31, 2024. [2] Held through Parjointco SA (Parjointco), a jointly controlled corporation (50%). Participating Shareholders' Equity Book value per participating share represents Power Corporation's participating shareholders' equity divided by the number of participating shares outstanding at the end of the reporting period. Participating shareholders' equity is calculated as the total assets of the combined Power Corporation and Power Financial holding company, including investments in subsidiaries presented using the equity method, less their net debt and preferred shares. The Corporation's book value per participating share was $33.04 at March 31, 2024, compared with $32.49 at December 31, 2023, representing an increase of 1.7%. (in millions of dollars, except per share amounts) March 31, 2024 December 31, 2023 Variation % Publicly traded operating companies Lifeco 15,624 15,326 2 IGM 3,784 3,702 2 GBL 3,780 3,717 2 23,188 22,745 2 Alternative asset investment platforms Sagard  839 829 1 Power Sustainable [1] 531 1,032 (49) 1,370 1,861 (26) Other Standalone businesses [2] 613 641 (4) Other assets and investments [1] 404 391 3 Cash and cash equivalents [1] 1,577 1,218 29 2,594 2,250 15 Total assets 27,152 26,856 1