2019 Annual Information Form
Total Page:16
File Type:pdf, Size:1020Kb
2019 Annual Information Form March 24, 2020 POWER CORPORATION OF CANADA > 2019 ANNUAL INFORMAT I O N F O R M 2 TABLE OF CONTENTS Item 1 General Information 3 Item 2 Documents Incorporated by Reference 4 Item 3 Forward-Looking Information 5 Item 4 Corporate Structure 6 Item 4.1 Incorporation 6 Item 4.2 Intercorporate relationships 7 Item 5 General Development of the Business 10 Item 5.1 Business of Power 10 Item 5.2 Development of the business over the last three years 10 Item 6 Narrative Description of the Business 13 Item 6.1 Power Financial Corporation 13 Item 6.2 Investment platforms and other 13 Item 7 Risk Factors 15 Item 8 Description of the Share Capital 17 Item 8.1 General 17 Item 8.2 Subordinate Voting Shares 17 Item 8.3 Participating Preferred Shares 18 Item 8.4 First Preferred Shares 18 Item 9 Ratings 20 Item 10 Dividends 23 Item 11 Market for Securities 24 Item 12 Directors and Officers 26 Item 12.1 Directors 26 Item 12.2 Executive and other officers 27 Item 13 Voting Securities 29 Item 14 Committees 30 Item 14.1 Audit Committee 30 Item 15 Interest of Management and Others in Material Transactions 33 Item 16 Material Contracts 33 Item 17 Transfer Agent 34 Item 18 Experts 34 Item 19 Environmental, Social and Governance Factors 35 Item 20 Additional Information 36 Appendix A Power Corporation of Canada Audit Committee Charter 37 POWER CORPORATION OF CANADA > 2019 ANNUAL INFORMAT I O N F O R M 3 ITEM 1 GENERAL INFORMATION Item 1 The following abbreviations have been used throughout this Annual Information Form: – General Information General Name in full Abbreviation Annual Information Form of Great-West Lifeco Inc., Lifeco’s Annual Information Form dated February 12, 2020 Annual Information Form of IGM Financial Inc., IGM Financial’s Annual Information Form dated March 19, 2020 Annual Information Form of Power Financial Corporation, Power Financial’s Annual Information Form dated March 24, 2020 The Canada Life Assurance Company Canada Life China Asset Management Co., Ltd. China AMC Gesca Holdings Inc. La Presse Great-West Life & Annuity Insurance Company Empower Retirement Great-West Lifeco Inc. Lifeco Groupe Bruxelles Lambert GBL IGM Financial Inc. IGM Financial Investors Group Inc. IG Wealth Management Lion Buses inc. Lion Electric Lumenpulse Group Inc. Lumenpulse Mackenzie Financial Corporation Mackenzie Investments Mackenzie Inc. Mackenzie Management’s Discussion and Analysis Power’s MD&A of Power Corporation of Canada, dated March 18, 2020 Nautilus Solar Energy, LLC Nautilus Pansolo Holding Inc. Pansolo Pargesa Holding SA Pargesa Parjointco N.V. Parjointco Peak Achievement Athletics Inc. Peak Portag3 Ventures Limited Partnership Portag3 Ventures Fund I Portag3 Ventures II Limited Partnership Portag3 Ventures Fund II Potentia Renewables Inc. Potentia Power Corporation of Canada Power or the Corporation Power Energy Corporation Power Energy Power Financial Corporation Power Financial Power Financial Europe B.V. PFE Power Pacific Investment Management Inc. Power Pacific Putnam Investments, LLC Putnam Sagard Credit Partners, LP SCP Fund Sagard Holdings ULC Sagard Holdings POWER CORPORATION OF CANADA > 2019 ANNUAL INFORMAT I O N F O R M 4 ITEM 2 DOCUMENTS INCORPORATED BY REFERENCE 2 Item The following documents are incorporated herein by reference to the extent specified herein: – Documents Incorporated by Reference by Incorporated Documents ˃ Certain portions of Power Financial’s Annual Information Form; ˃ Certain portions of Lifeco’s Annual Information Form; and ˃ Certain portions of IGM Financial’s Annual Information Form. The above documents have been prepared by Power Financial, Lifeco and IGM Financial, respectively, and are available on SEDAR under their respective company profiles at www.sedar.com. In addition, certain portions of Power’s MD&A and the material change report of the Corporation dated December 18, 2019 are incorporated herein by reference to the extent specified herein. Power’s MD&A and the foregoing material change report are available on SEDAR under the Corporation’s profile at www.sedar.com. POWER CORPOR ATION OF CANADA > 2019 ANNUAL INFORMAT I O N F O R M 5 ITEM 3 FORWARD-LOOKING INFORMATION Item 3 Certain statements in this Annual Information Form, 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 Forward 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 and its business, - operations, prospects and risks at a point in time in the context of historical and possible future developments, and the Information Looking 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 including the fintech strategy, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, the intended effects of the Reorganization (as defined herein), the NCIB (as defined herein) and the proposed redemption by the Corporation and Power Financial of certain classes of their First Preferred Shares. 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 regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, manmade 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, and the Corporation’s and its subsidiaries’ success in anticipating and managing the foregoing factors. 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, as well as other considerations that are believed to be appropriate in the circumstances, including the availability of cash to complete purchases under the NCIB and to redeem First Preferred Shares of the Corporation and Power Financial and that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries. 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