First 2016 Quarter Report 1

First Quarter Report

For the period ended March 1, 2016

TO THE SHAREHOLDERS

Power Corporation of Canada’s operating earnings attributable to participating shareholders (a non-IFRS inancial measure) for the quarter ended March , were $ million or $. per share, compared with $ million or $. per share in .

Non-operating items, not included in operating earnings, were a net charge of $ million, mainly comprised of the Corporation’s $ million share of Groupe Bruxelles Lambert’s (GBL) non-cash impairment charge resulting from the mark to market of its LafargeHolcim Ltd (LafargeHolcim) investment, and a gain of $ million on the partial disposal of GBL’s interest in Total SA (Total).

Net earnings attributable to participating shareholders were $ million or $. per share, compared with $ million or $. per share in .

RESULTS OF POWER FINANCIAL CORPORATION

Power Financial reported operating earnings attributable to common shareholders for the quarter ended March , of $ million or $. per share, compared with $ million, or $. per share in .

Non-operating items, not included in operating earnings, were a net charge of $ million, mainly comprised of Power Financial’s share of GBL’s non-operating items, as discussed above.

Net earnings attributable to common shareholders were $ million or $. per share, compared with $ million or $. per share in .

As at March , , Power Corporation held a .% economic interest in Power Financial. Power Financial’s contribution to Power Corporation’s operating earnings was $ million for the quarter ended March , , compared with $ million in .

INCOME FROM INVESTMENTS

Income from investments represented a loss of $ million for the quarter ended March , , compared with a gain of $ million in . The fair value of investments at the end of the quarter was $, million, compared with $, million at the end of .

On behalf of the ,

Signed, Signed, , Jr., .., .. André Desmarais, .., .. Chairman and Co-Chief Executive Oficer Deputy Chairman, President and Co-Chief Executive Oficer

May ,

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 1

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led as at nancial statements of the Corporation FIRST QUARTER REPORT 2016 2016 REPORT FIRST QUARTER Corporation of Canada of Power nancial performance Power Corporation of Canada of Corporation Power TABLE OF CONTENTS TABLE nancial condition and fi with the securities regulatory authorities in each of the provinces and territories with the securities regulatory authorities in each of the provinces PART D PART E PARTA PARTB PARTC interim condensed consolidated fi interim condensed consolidated fi applicable securities laws. and for the three months ended March 31, 2016. This document has been fi This document has 2016. March 31, months ended the three and for of Canada and mailed to shareholders of the Corporation in accordance with in accordance of the Corporation of Canada and mailed to shareholders (the Corporation) for the three months ended March 31, 2016 and the unaudited months ended March 31, the three (the Corporation) for POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Pargesa Holding SA Holding Pargesa Power Corporation of Canada of Corporation Power Corporation Financial Power IGM Financial Inc. IGM Financial Great-West Lifeco Inc. Lifeco Great-West This document contains management’s discussion and analysis of the management’sThis document contains and analysis of the discussion 3

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P _ 1 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd 3 The trademarks contained in this report are owned by Power Corporation of Canada or by a Member of the Power Corporation Group of CompaniesTM. Trademarks that are not owned by Power Corporation are used with permission.

4 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 1 A FIRST QUARTER REPORT 2016 2016 REPORT FIRST QUARTER PART A Power Corporation of Canada of Corporation Power PAGE A 33 PAGE PAGE A 2 PAGE Financial Statements and Notes Financial Statements Management’s Discussion and Analysis and Discussion Management’s POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 A

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_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ Environnement Company (Suez Environnement); Swiss Stock Exchang Stock Swiss Environnement); (Suez Company Environnement (Sagard InvestmentInc Solar Potentia (Parjointco); Funds); SGS S re) Pwr iaca Corporati Financial Power Creek); (L Company Life London goals and priorities willconclusion or projections predictions, forecasts, expectations, not be achieved. A varietyBy of factors its nature,verbs suchas “may”, “will”, “sh this refer “seeks” “estimates”, or “believes”, information upon depend nature, for in predictive economies are international that statements and American North for outlook the opportun prospects, performance, i may statements These fut purposes. the to relating plans and expectations current management’s SEDAR atwww.sedar.com. Annual Information Form, may be found on the Corporation’s webs uh usdais dslsd urn epcain. Forward-look expectations. current disclosed subsidiaries’ such reflect and assumptions certain Ce › STATEMENTS FORWARD-LOOKING or the Corporation)condition financial consolidated managem (TSX: forth sets following POW),The a public corporation, ARE INMILLI ALL TABULARAMOUNTS for the 2016 13, MAY t DISCUSSIONANDANALYSIS MANAGEMENT’S OFCANADA POWER CORPORATION Ivsos ru) Iih ie ru Lmtd Iih ie; a Pr La Life); (Irish Limited Group Life Irish Group); (Investors Financial or Great-West Life& Annuity); Great-WestLifeco Inc. Cr (Eagle LLC Energy, Renewable Ch report: this throughout used are abbreviations following The int and America North in factors market and political economic, e x Co p the e of c results t and aperformance t i o n s o f e s t i m a t e d o r a n t i c i p a t e d e v e n t s o r r e s u l t s . T h e performa financial Corporation’s Additional information about the about information Additional information, futureevents statement such which on date the after circumstances or events forward-looking statements is ba is statements forward-looking soitd ih rtcl conig supin ad estimates), and assumptions accounting critical with associated ac in changes risks, funding and liquidity market of management securities regulatoryauthoritie Other than as specifically requiredinformation currently available t by applicable Canadian law, bel are that considerations other Informatio statements. un factors, other and these consider to cautioned is reader The strategies,and theCorporation’ ab subsidiaries’ its and Corporation’s the events, catastrophic government in changes change, technological risks, reputational making a forecast or projection, or forecast a making expected to have a material impa material a have to expected Life Assurance Company (Great-West Life); Total SA (Total); Wea SA(Total); Total Life); (Great-West Company Life Assurance I n t e g r a M e d A m e r i c a , I n c . a n d V e i n C l i n i c s o f A m e r i c a ( I n t e g r a M e 05 osldtd iaca Stat Financial Consolidated 2015 fin consolidated audited the and Consolidated Financial Statements),of the MD&A for the Power year ended Corporation and notes thereto for thethree-month peri document should be read in conju E n g 0 1 _ A P C C 2 _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 1 1 - 0 5 _ v n contained in forward-looking statements forward-looking in contained n 1 . i n orresults, or otherwise. d d

A ould”, “would” and“could”. , “intends”, “targets”, “projec “targets”, “intends”, , s inCanada andavailableatww s and its subsidiaries’success 2 o management, they may provet s ujc t ihrn rss an risks inherent to subject is the Corporation’s current expec current Corporation’s the ieved to be appropriate in the in appropriate be to ieved sed is provided in its disclosu its in provided is sed c, iaca psto ad cas and position financial nce, including management’s percept management’s including . (Potentia Solar); Power Energ Power Solar); (Potentia . risks and uncertainties of the of uncertainties and risks ct on the Corporation and its s its and Corporation the on ct ities, priorities, targets, goa targets, priorities, ities, cue wtot iiain sta limitation, without nclude, eek); Euronext Brussels (EBR); E (EBR); Brussels Euronext eek); prto ad t subsidiaries its and rporation (G) Sur Vcoi Commun Victoria Square (SGS); A n Pwr iaca) Pta I Putnam Financial); (Power on no Lf) Mceze Financia Mackenzie Life); ondon ONS OF CANADIAN DOLLARS, UNLESS DOLLARS, OF CANADIAN ONS rtain statements in this MD&A, this in statements rtain and financial performance of P ancial statements and notes the notes and statements ancial nction with the unaudited inter unaudited the with nction mns. diinl information Additional ements). n’ dsuso ad nlss ( analysis and discussion ent’s ts”, “forecasts” or negative versions thereof and other similar other and thereof versions negative or “forecasts” ts”, inanticipating andmanaging the foregoing factors. , many of which are beyond the Co the beyond are which of many , s will not prove to be accurate, that assumptions may not be co be not may assumptions that accurate, be to prove not will s ls, ongoing objectives, strategi objectives, ongoing ls, w.sedar.com. Corporation’s business and material factors or assumptions on circumstances, including that the list of factors in the previ the in factors of list the that including circumstances, re materials, including this MD&A and its most recent Annual In Annual recent most its and MD&A this including materials, re the Corporation undertakes no obligation to update any forward lt t cmlt srtgc tran strategic complete to ility ucranis ht a b gnrl r pcfc n wih give which and specific or general be may that uncertainties d regulation and legislation, changes in tax laws, unexpected ju unexpected laws, tax in changes legislation, and regulation h f l o w s a s a t a n d f o r t h e p e r i o d s e n d e d o n c e r t a i n d a t e s a n d t o certainties and potential events carefully and not to put undue put to not and carefully events potential and certainties tations, or with respect to disclosure regarding the Corporatio o be incorrect. be incorrect. o n saeet ae rvdd o te upss f sitn te r the assisting of purposes the for provided are statements ing ubsidiaries. While the Corporatio the While ubsidiaries. e atr icue bt r nt iie t: h ipc o unant or impact the to: limited not are but include, factors se eet rgrig h operations the regarding tements h efc o apyn ftr acutn cags bsns com business changes, accounting future applying of effect the to future events or conditions, or include words such as “expec is based upon certain material assumptions that were applied i ions of historical trends, current conditions and expected futu c o u n t i n g p o l i c i e s a n d m e t h o d s u s e d t o r e p o r t f i n a n c i a l c o n d i t i o is made, or to reflect the occurrence of unanticipated events, r ad h rae i cuind ht uh ttmns a nt be not may statements such that cautioned is reader the and ure (Lifeco); Groupe Bruxelles Lambert (GBL); IGM Financial Inc. ( Inc. Financial IGM (GBL); Lambert Bruxelles Groupe (Lifeco); y Corporation (Power Energy); Po Energy); (Power Corporation y n ter uiess ad ol cue cul eut t differ to results actual cause could and businesses, their and se lé (a rse; aag S (aag) Lfreocm Ltd LafargeHolcim (Lafarge); SA Lafarge Presse); (La ltée esse, rainly itrs ad oeg ecag rts goa equit global rates, exchange foreign and interest ernationally, lthsimple Financial Corp. (). Corp. (Wealthsimple). Financial lthsimple t h e c u r r e n t f i s c a l y e a r a n d s u b s e q u e n tp e r i o d s . F o r w a r d - l o o k i n g i n a A s s e t M a n a g e m e n t C o . L t d . ( C h i n a A M C ) ; C I T I CL i m i t e d ( C I T I C uronext Paris (EPA); Great-West Life & Annuity Insurance Compan Insurance Annuity & Life Great-West (EPA); Paris uronext vsmns LC Pta) Sgr Erp, aad aia ad Sag and Capital Sagard Europe, Sagard (Putnam); LLC nvestments, ) Itrainl iaca Rprig tnad (FS; Investo (IFRS); Standards Reporting Financial International d); other than statements of historical fact, are forward-looking s forward-looking are fact, historical of statements than other i c a t i o n s G r o u p I n c . ( S q u a r e V i c t o r i a C o m m u n i c a t i o n s G r o u po r S V Croain Mceze; ags Hlig A Prea; Parjoi (Pargesa); SA Holding Pargesa (Mackenzie); Corporation l e (SIX); The Assurance Company (Canada Life); The G OTHERWISE NOTED. NOTED. OTHERWISE ower Corporation of Canada (Power Corporation (Power Canada of Corporation ower reto for the year ended December 31, 2015 (the hree-monthperiod ended March 31, 2016. This im condensed consolidated financial statements statements financial consolidated condensed im December 31, 2015 (the 2015 Annual MD&A), MD&A), Annual 2015 (the 2015 31, December es and outlook of the Corporati eaig o oe Croain icuig its including Corporation, Power to relating DA o te nuie itrm condensed interim unaudited the of MD&A) atos itgae acquisition integrate sactions, rporation’s and its subsidiari its and rporation’s ite at www.powercorporation.com and on on and www.powercorporation.com at ite n considers these assumptions these considers n od ended March 31, 2016 (the Interim bsns, iaca condition financial business, , wer Energy Eagle Creek LLP (Pow expressions, or future or conditional or future or expressions, ous paragraph, collectively, are not rrect and that objectives, strategic objectives, that and rrect on and its subsidiaries, as well as es’ control, affect the operations, the affect control, es’ dicial or regulatory proceedings, regulatory or dicial ad mlmn ohr growth other implement and s which information contained in in contained information which formation Form, filed with the the with filed Form, formation n’s public subsidiaries, reflect subsidiaries, public n’s reliance on forward-looking forward-looking on reliance -looking statement to reflect reflect to statement -looking re developments, as well as as well as developments, re eader in understanding the the understanding in eader present information about , expected financial results, results, financial expected , hte a a eut f new of result a as whether ie o h psiiiy that possibility the to rise cptd mat f general of impact icipated to be reasonable based on on based reasonable be to n drawing a conclusion or or conclusion a drawing n n (including uncertainties uncertainties (including n s, atcpts, “plans”, “anticipates”, ts”, aeily rm current from materially petition, operational and and operational petition, IGM or IGM Financial); ad aia markets, capital and y appropriate for other statements include include statements tatements based on on based tatements (LafargeHolcim); er Energy Eagle Energy er ); Eagle Creek y (Great-West (Great-West y rs Group Inc. Inc. Group rs r China ard reat-West reat-West G; Suez CG); to N.V. ntco 116-05-12 2:02PM 6 - 0 5 - 1 2

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27 27 28 28 28 29 29 29 29 30 31 32 3 Page A ed basis, as nce with applicable securities ted basis; om Power Financial’s website website Financial’s Power om accordance with applicable securities nformation, as issued by Pargesa in its nto Stock Exchange. Pargesa is a public plicable securities legislation, and which is consolidated and non-consolidat with interests in companies ay 13, 2016, Power Corporation held 65.6% of er information on Pargesa’s results is available other business sectors. Its principal asset is a a is asset principal Its sectors. business other EDAR (www.sedar.com) or from IGM’s website website IGM’s from or (www.sedar.com) EDAR esa. Power Financial (TSX: PWF), Lifeco (TSX: EDAR (www.sedar.com) or from Lifeco’s website website Lifeco’s from or (www.sedar.com) EDAR Lifeco and IGM. Power Financial also holds jointly jointly holds also Financial Power IGM. and Lifeco Internalover Control Financial Reporting Summary of Quarterly Results Financial Instruments Arrangements Sheet Off-Balance LiabilitiesContingent Obligations Commitments and Contractual Income taxes Transactions Related with Parties Summary of Critical Accounting Estimates and Judgments Changes in Accounting Policies Future Accounting Changes FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

3 4 5 6 7 7 9 22 22 24 25 10 10 18 consolidated and non-consolida Page rived from publicly disclosed i POWER CORPORATION OF CANADA OF CORPORATION POWER Financial Financial in accordance with ap ed international management and ’s interim MD&A, presented on a a on presented MD&A, interim ’s POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER onsists of five parts: 3 A

d d n i . ower Corporation, presented on a 1 IGM’s interim MD&A, as prepared and disclosed by IGM in accorda v _ Pargesa’s financial results, de Lifeco’s interim MD&A, as prepared and disclosed by Lifeco in 5 ᪫ 0 ᪫ ᪫ ᪫ - 1  ᪫ ‘™‡” ‹ƒ ‹ƒŽ 1 - 6 1 0 2 _ (www.igmfinancial.com); (www.igmfinancial.com); legislation, and which is also available either directly from S from directly either available also is which and legislation, Part E Part C Part D Part A legislation, and which is also available either directly from S from directly either available also is which and legislation, (www.greatwestlifeco.com); end-of-quarter press release that discusses its earnings. Furth on its website (www.pargesa.ch). (www.pargesa.ch). website on its prepared and disclosed by Power also available either (www.powerfinancial.com); directly from SEDAR (www.sedar.com) or fr Part C Other Investments Other Investments Non-IFRS Financial Measures and Presentation Power Financial Funds Sagard Investment Other Subsidiaries C

P _ 1  with the Frère Group of Belgium, a controlling interest in Parg in and interest communications energy, renewable controlling a services, Belgium, financial of the in Group Frère the with    OVERVIEW Power Corporation is a diversifi  Basis of Presentation Basis of Presentation Results Corporation of Canada of Power FinancialPosition Cash Flows CapitalManagement Risk Management  MD&A INTERIM THE OF ORGANIZATION Overview GWO) and IGM (TSX: IGM) are public companies listed on the Toro the on listed companies public are IGM) controlling interest in Power Financial, which in turn controls (TSX: IGM M of As PARG). and (SIX: Exchange GWO) Stock Swiss the on listed company Financial. in Power interests voting the equity and The Corporation’s MD&A c

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_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ 67.4% services sectorin Canada, the United States and Europe, throug held bySagardEurope),and Inte rights ina life insurance company are limitedby law to 65%. The following chart reflects the reflects chart following The  G i a iaca srie cmay hc sre te financial the serves which company subsidiaries, eachoperating dis services financial a is IGM IGM Financial of 4.0%, 65% and approximately 67.4% representing held IGM and Financial Power 2016, 31, March At businesses. invest and retirement insurance, Lifeco isLifeco an international finan joint holds also Financial Power diversified a is Financial Power FINANCIAL POWER See part C ofthisMD&Afor additional information on Lifeco. which focuses ona limited numbe in hold Funds Investment Sagard nld Pwr iaca’ operat Financial’s Power include E n [4] Held through Power Energy Eagle Creek(60%). [3] Seepage9forthe Corporation [2] Representing of thevoting 60.4% rights. [1] aj Held throughParjointco, g 100% 95.8% Life & Annuity 0 1 Great-West Great-West _ A P Putnam Lifeco C C 4 _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 1 1 - 0 5 100% _ 4.0% v 1 Great-West Great-West 100% 100% . i n d 100% London Canada d 61.2% Life ointly controlled corporation ( corporation controlled ointly

3.8% Life Life

Irish 65.6% A Life IGM Financial Financial IGM ’s interest intheSagardEur interest ’s

4 100% 100% Power Financial Financial Power tinctly withintheadvicesegme economic interest held by the by held interest economic management and holding company holding and management il evcs odn cmay w company holding services cial Mackenzie graMed (held bySagard Capital) Investors y ih h Fèe ru, cont a Group, Frère the with ly r ofsignificant and strategic Group Group n cmais Pwr nry SV Energy, Power companies, ing their portfolios controlling in controlling portfolios their et evcs n eggd n th in engaged and services ment the voting rights attached to 50%). 50%). ope funds. funds. ope 27.8% OE OPRTO FCND POWER CORPORATION OFCANADA [1] Pargesa

50.0% Imerys 53.8% Imerys 53.8% Engie 2.3% 2.3% Engie Total 1.3% SGS 15.0% LafargeHolcim 9.4% Pernod Ricard 7.5% 7.5% Ricard Pernod GBL GBL POWER CORPORATION POWER CORPORATION 59.8% Wealthsimple [2] core holdings, throughheld its subsidiary, GBL. nt ofthefinancial services market.

Corporation in entities at March 31, 2016, which 2016, 31, March at entities in Corporation terests in: Alvest, Les Dé Les Alvest, in: terests . rolling interest in Pargesa, a holding company company holding a Pargesa, in interest rolling ith subsidiaries offering life insurance, health health insurance, life offering subsidiaries ith is otoln itrss n ieo n IGM. and Lifeco in interests controlling its h l ottnig ieo oig hrs Voting shares. voting Lifeco outstanding all with substantial operat substantial with CG and the Sagard Investment Funds. The needs of Canadians through its principal principal its through Canadians of needs Sagard Investment r e s p e c t i v e l y , o f L i f e c o ’ s c o m m o n s h a r e s , e asset management and reinsurance reinsurance and management asset e Funds 100% 100% 100% SagardS China Sagard CapitalSd Sagard Europe 97.3% 97.3% IntegraMed 7 Vallées 59.5% 59.5% 7 Vallées Les Délicesdes Alvest 46.6% 46.6% Alvest d lices des 7 Vallées (both (both 7 Vallées des lices [3]

ions in the financial financial the in ions 100% 100% Energy Power 100% SVCG SVCG 31.2% Potentia Creek Solar Eagle [4]

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 5 A ope, ope, Sagard Capital in nvestment analysis; and (EPA: RI); Total – oil, gas ensive global network and and network ensive global diary diary of Lifeco, held 61.2% and 3.8%, is listed on the Brussels Stock Exchange ion ion in Wealthsimple, a technology-driven rchases and subsequent cancellation of its Financial, and the Frère Group, each hold a rivate Equity Partners (Sagard 1), Sagard II ent Funds operates with separate dedicated mpanies that are controlled by Sagard 3 are stments in: Imerys – mineral-based specialty anies based in France, Belgium, Luxembourg Europe. Sagard Europe is managed by Sagard of either Sagard 1 or Sagard 2, therefore the 50% interest in GBL, representing 52% of the 0 million. At March 31, 2016, Power Financial controlling controlling interest in Alvest (46.6% economic nd as such, Sagard 3’s financial statements are are statements financial 3’s Sagard such, as nd gates and concrete (SIX: HOLN and EPA: LHN); e geographies: Sagard Eur ed by 0.8% from 60.4% at 31, December 2015 to ce. Pargesa and GBL have also invested in Sagard s to: (i) leverage its ext % of the voting rights. rights. of the voting % allées (59.5% economic and voting interest) (see .5% interest in Pargesa, representing 75.4% of the tural gas, and energy and environmental services these two funds is accounted for as available-for- tion through fundamental i Ricard – wines and spirits fluence. l investments. l investments. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA OF CORPORATION POWER sts in mid-sized private comp gether are operated as Sagard Sagard as operated are gether s its activitie three funds in Europe: Sagard P Sagard Europe: in funds three orporation controls Sagard 3, a hich, at March 31, 2016, held a ; LafargeHolcim – cement, aggre P); and Engie – electricity, na tional information on Pargesa. rtification Pernod (SIX: SGSN); Wealthsimple, representing 60.4 hieve long-term capital apprecia POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P _ 1 and alternative energies (EPA: F (EPA: ENGI). (EPA: ENGI). addi for MD&A E of this See Part “Other Subsidiaries” below). interest and 50.01% voting interest) and in Les Délices des 7 V 7 des Délices Les in and interest) voting 50.01% and interest SGS – testing, inspection and ce voting voting rights in that company. (EBR: GBLB). GBL, a Belgian holding company, At March 31, 2016, GBL’s portfolio was mainly comprised of inve 61.2% at March 31, 2016. March 31, 61.2% at IGM. on information additional for D of this MD&A See part investment manager, bringing the total investment to date to $3 to date to investment total the bringing manager, investment interest in equity held a 59.8% solutions for industry NK) (EPA: in Fran based of the Corporation owned subsidiary wholly SAS, a Europe’s funds. Sagard Europe inve respectively, of IGM’s common shares. As a result of IGM’s repu IGM’s of result a As shares. common IGM’s of respectively, common shares, Power Financial’s equity interest in IGM increas consolidated with those of Power Corporation. Investments in co consolidated with Sagard 3. At March 31, 2016, Sagard 3 held a the United States, and Sagard China. Each of the Sagard Investm Sagard the of Each China. Sagard and States, United the teams. Power Corporation conduct business relationships; (ii) ac Sagard Europe The Corporation has invested in (Sagard 2) and Sagard 3, which to in significant of exercising objective the with Switzerland and C The the Corporation does not have However, significant influence in respect investments. sale Wealthsimple In the first quarter of 2016, Power Financial invested $13 mill FUNDS INVESTMENT SAGARD The Corporation has invested in equity investment funds in thre 50% interest in Parjointco, which, at March 31, 2016, held a 55 in that company. rights voting Pargesa is a holding company, w  At March 31, 2016, Power Financial and Great-West Life, a subsi GBL Pargesa and Power Financial Europe B.V., a wholly owned subsidiary of Power (iii) seek opportunities to increase its ownership in successfu in its ownership to increase seek opportunities (iii) Corporation’s interest in the portfolio investments of each of 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A5 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A6 C C

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U POWER CORPORATION OF CANADA A T 1 _ in Alvest andLesDélicesdes7 own acontrolling interest(Alves $952 million,comparedwith$951 “ (see IntegraMed in interest 97.3% a holds also Capital Sagard and wind projects located inNorth America. renewabdevelop, ownand operate (“H” shares) and the Shenzhen or Shenzhen the and (“H” shares) Sagard Capital Partners, L.P. (S L.P. Partners, Capital Sagard Sagard Capital inve investme such of share Corporation’s Corporation’s the of value fair the 2016, 31, March At 2), Sagard in million (€37 Pargesa of commitments Excluding [1] 2016 31, March Corporation’s shareat ofthe Fair value Corporation’s shareofdistributionstodate atMarch commitment 31, 2016 Corporation’s outstanding Corporation’s commitment Fund size (in millions; in Canadian dollars exceptas otherwise noted) 2016 31, March Sagard Europefunds:  Power Energy, a wholly owned subsidiary of the Corporation, act Corporation, the of subsidiary owned wholly a Energy, Power Power Energy Po of Other subsidiariesconsist SUBSIDIARIES OTHER Total portfolio Fair value has Corporation the addition, In Power Corporation invests Sagard China as a Qualified Foreign Institutional “H” shareinvestment activ f a i r v a l u e o f S a g a r d C a p i t a l ’ s i n v e s t m e n t s , i n c l u d i n g c a s h a n d interest in Potentia to 100%. Pow interest inPotentiato100%. mill $154 invested Energy Power

E n g Cash Investments Sagard 3). Sagard 3). 0 A, B and H equities A, BandHequities Money marketfunds 1 _ A P C C 6 _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 1 1 - 0 5 _ v 1 . i n d d

A [1] 6

ities areSagard China. Vallées, was $263 million,comp agard Capital) primarily invest primarily Capital) agard werEnergy and SVCG as wellas

stments held indirectly through indirectly held stments t, LesDélices des7Vallées a er Energy’s investments todat er Energy’sinvestments ion in the first quarter of 2016 of quarter first the in ion Shanghai Stock Exchange (“B” s (“B” Exchange Stock Shanghai millionatDece le energy generating facilities generating le energy netd n hns companies Chinese in invested OE OPRTO FCND POWER CORPORATION OFCANADA [1]

mber 31,2015. and GBL (€50 million in Sagard 1, €113 million in Sagard 2, an 2, Sagard in million €113 1, Sagard in million (€50 GBL and nd IntegraMed). s in mid-cap public companies in the United States. United the in companies public mid-cap in s ared with$257million atDecember 31,2015. Other Subsidiaries”below) Investor (QFII) in the Chinese “A” shares market. market. shares “A” Chinese the in (QFII) Investor companies inwhich the Sagard Investment Funds e are$328million. t h e i n v e s t m e n t i n I n t e g r a M e d a t f a i r v a l u e , w a s Pargesa and GBL,and including the investments . Currently, activities are focused on solar, hydro, hydro, solar, on focused are activities Currently, . ,of which $122 million was used to increase its

nts in the Sagard Europefunds, excluding the ively manages investme manages ively hares). Collectively, the Chinese “A”, “B” and “B” “A”, Chinese the Collectively, hares). itd n h Hn K Hong the on listed Sagard 1 €100 €535 405 €3 10

March 31, . At March 31, 2016,the . AtMarch31, Sagard 2 ntsin companies that €148 €748 n Sok Exchange Stock ong 2016 638 206 315 117 €37 109 93

d €200 million in in million €200 d December 31, Sagard 3 €201 €404 201 €87 666 168 148 350 160 23 5

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ent), its subsidiaries, ceasing to publish its its publish to ceasing wing three companies: wing three companies: the related website LaPresse.ca rport ground support equipment and and equipment support ground rport (IAS 34) and are presented in Canadian Canadian in presented are and 34) (IAS m frozen desserts which is held through tion) and their financial statements are h are held through Sagard Capital. na Securities Regulatory Commission. It is of Pargesa’s other comprehensive income. other comprehensive income. of Pargesa’s n have been prepared in accordance with with accordance in prepared been have n tco. Parjointco is a holding company jointly jointly company holding a is Parjointco tco. reafter for post-acquisition changes in Power . China AMC was established in 1998 and was ial statements present, as a single economic economic single a as present, statements ial Presse, publishes LaPresse+, its digital transition by 2016, the fair value of this private investment ); ); continues to be available. be available. to continues th those of the Corporation. Lifeco and IGM are rgesa’s net earnings or loss; and sing the equity method. method. the equity sing only investment is its interest in Pargesa. Power ng interest in the follo ng of Power Corporation (par Corporation Power of equity method, in which: which: in method, equity pany balances and transactions. ows of the parent company and its subsidiaries. The FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER , a newspaper. It also operates Interim Financial Reporting

POWER CORPORATION OF CANADA OF CORPORATION POWER ൞ nsive income includes its share nsive income lthcare services companies whic r loss includes its share of Pa its share includes loss r oup, through its subsidiary La subsidiary its through oup, Financial. Consolidated financ et assets (shareholders’ equity t companies approved by the Chi La Presse La Pargesa is held through Parjoin eted a significant component of estment Funds held a controlli held estment Funds r Financial are consolidated wi (same as at December 31, 2015) day. The Saturday paper edition Saturday day. The s present the financial results Wealthsimple is accounted for u Wealthsimple is er the elimination of intercom of er the elimination ntco is accounted for using the for using ntco is accounted hinese asset management sector. asset management hinese revenues, expenses and cash fl POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ribution which is held through Sagard 3; Sagard held through is which ribution 7 A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ The investment is initially recognized at cost and adjusted the net earnings o Power Financial’s Power Financial’s other comprehe 46.6% (50.01% voting interest) in Alvest, a global leader of ai of leader global a Alvest, in interest) voting (50.01% 46.6% 59.5% in Les Délices des 7 Vallées, a French supplier of premiu 97.3% in IntegraMed, private hea Financial’s share of Pargesa’s n share of Pargesa’s Financial’s replacement parts dist Sagard 3; and C C

P _ 1 controlled by Power Financial and the Frère Group. Parjointco’s Group. Frère the and Financial Power by controlled Financial’s investment in Parjoi investment Financial’s consolidated financial statement and other controlled entities aft Power Financial’s investment in International Accounting Standard 34 entity, the assets, liabilities,    The Interim Consolidated Financial Statements of the Corporatio the of Statements Financial Consolidated PRESENTATION BASIS OF Interim The for iPad and Android tablets, and    OTHER INVESTMENTS The Corporation holds a 10% interest in China AMC; at March 31, was estimated to be $310 million  Group Communications VictoriaSquare Square Victoria Communications Gr Investments Controlled Portfolio the Sagard Inv At March 31, 2016, January 1, 2016, La Presse compl Presse La 2016, 1, January dollars. The financial statements of Powe controlled by Power Financial consolidated with (itself those of controlled Power by the Corpora one of the first asset managemen recognized as in the C a leader paper Fri from Monday to edition

Power Financial’s investment in investment Power Financial’s 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A7 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A8 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ At March31,2016,theCorporatio The followingtablesu  GBL Holdings At March31,2016,Pargesa’s 60.4% o Representing [4] Held through Parjointco, a jointly controlled corporation ( [3] in IGM. interest a 3.8% also holds Life Great-West [2] IGM also holds a 4. [1] Square Victoria Communications Group Power Energy Financial Power Holdings E investments Non-controlled portfolio jointcontrol Significant influence or entity the in interest Controlling Control n Engie Total Pernod Ricard SGS LafargeHolcim Imerys Creek Power Energy Eagle Potentia Solar Wealthsimple Pargesa IGM Lifeco g 0 Eagle CreekEagle 1 _ A [2] P C [1]

C 8 _ [3]

POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0

1 6 - 1

1 [4]

-

0 5

_ v 1 0% interest in Lifeco. 0% interest . i n d d f the voting rights. voting rights. f the

A mmarizes theaccountin 8 Basis of Accounting Basis ofAccounting x x x

Availablefor sale (AFS) accounting Equity method of Consolidation

holdings wereasfollows: n’s holdings wereasfollows:

% economic % % economic % OE OPRTO FCND POWER CORPORATION OFCANADA

interest interest

100.0 100.0 100.0

52.0 60.0 59.8 27.8 61.2 67.4 65.6 15.0 53.8 50.0 g presentation for g Comprehensive Income Income Comprehensive Earnings and Other 2.3 1.3 7.5 9.4 x x x x x 50%).

if any charges, impairment by disposals gains or losses on dividends received and Earnings consist of comprehensive income earnings and other of share Corporation’s controllinginterests Consolidated with non- comprehensive income other through market to marked Theinvestments are Earnings are reduced Earnings

investment Portfolio investment Portfolio investment Portfolio investment Portfolio investment Portfolio interest Controlling interest Controlling Basis of accounting interest Controlling control Joint interest Controlling interest Controlling interest Controlling control Joint control Joint interest Controlling interest Controlling interest Controlling Basis of accounting the Corporation’s holdings: the Corporation’s

Impairment Testing Testing Impairment x x x x

impairment charge investment results in an decline in the value of the or prolonged significant A level investment doneatthe individual Impairment testing is impairment for tested is investment Entire impairment tested annually for life intangible assets are and indefinite Goodwill

Available forsale Available forsale Available forsale Available forsale Available forsale Consolidation Consolidation accounting of Method Consolidation methodof Equity accounting Consolidation Consolidation Consolidation methodof Equity accounting methodof Equity accounting Consolidation Consolidation Consolidation accounting of Method

Impairment Reversal Reversal Impairment

x x x x x

further impairment impairment further impairment leads toa subsequent toan decrease price share A assets is reversed if there Impairment ofintangible recovery ofvalue subsequent a is there if even reversed be Cannot has recoveredits value evidence the investment Reversed ifthere is value is evidenceof recoveryof reversed be cannot Impairment ofgoodwill

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9 A r share are non-IFRS ion’s interests in Power lding company’s (parent) Available for sale Available for sale Method of accounting sale Available for sale Available for Consolidation Consolidation Consolidation Available for sale Consolidation Available for sale

son of results from operations less – Condensed Supplementary Non- nction with the following notes to the the to notes following the with nction s presented as other items or non-operating icies; icies; es. Reconciliations of the non-IFRS basis of

not be comparable to similar measures used by by used measures similar to comparable be not associate. nd operating earnings pe d analysis of the financial performance of Power ul information to readers in their analysis of the were as follows: as follows: were stent with the presentation in previous periods, periods, previous in presentation the with stent uity method. Presentation on a non-consolidated that are not considered to be ongoing operating included elsewhere in this MD&A. in this elsewhere included to results reported in accordance with IFRS, see used by the Corporation to present and analyze its its analyze and present to Corporation the by used he Corporation, assist the reader in comparing the ented in the section “Results of Power Corporation esentation, Power Corporat reader as it presents the ho Portfolio investments Basis of accounting accounting of Basis Portfolio investment Portfolio investment Controlling interest Controlling interest Controlling interest Portfolio investments Controlling interest Portfolio investments FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER , which include the after-tax impact of any item that in

ating shareholders; and 18.7 18.7 19.8 49.7 46.6 59.5 97.3 100.0 100.0 100.0 1 – 21 1 – 21 interest interest the period-over-period compari 10 – 15 10 – 15 POWER CORPORATION OF CANADA OF CORPORATION POWER less than 5 5 than less % economic of significant accounting pol accounting of significant the Corporation’s share of item

d corporations and associates; intly controlledintly corporation or

o participating shareholders a measures in its presentation an f the Sagard Investment Funds Funds Investment Sagard f the are accounted for using the eq the using for accounted are ave a standard meaning and may hey provide additional meaningf rticipating shareholders”, pres arnings” section below. below. arnings” section URES AND PRESENTATION POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER om this non-IFRS measure. measure. non-IFRS om this attributable to particip non-operating earnings non-operating presentation in accordance with IFRS are are with IFRS accordance in presentation 9 A

or or d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ Investments in jointly controlle Investments in jointly assets; and Goodwill and intangible interests.Non-controlling earnings operating other items Basis of presentation and summary Investments; management’s management’s judgment would make earnings by a subsidiary or a jo or by a subsidiary earnings meaningful. meaningful. Other items include C Les Délices des 7 Vallées Les Délices des 7 Vallées Other investments Alvest C

P IntegraMed Other investments Various investments Sagard 1 Sagard 2 Sagard 3 _ 1 of Canada”, are comprised of: current period’s results to those of previous periods as items activities are excluded fr Operating Operating earnings attributable t results, financial position and cash flows. In this basis of pr of basis this In flows. cash and position financial results, Financial and other subsidiaries “Net earnings attributable to pa financial measures that do not h other entities. For a reconciliation of these non-IFRS measures the “Results of Power Consolidated Statements of E Corporation also is presentation of of basis Canada non-consolidated a MD&A, this – In Earnings Summary    NON-IFRS FINANCIAL MEAS In analyzing the financial results of the Corporation and consi   This summary of accounting presentation should be read in conju in read be should Capital Sagard presentation accounting China Sagard of summary This Corporation’s 2015 Consolidated Financial Statements:    o holdings 2016, the 31, At March Funds Investment Sagard Europe Sagard Management uses these financial t that believes and Corporation, results of the Corporation. Operating earnings, as defined by t basis is a non-IFRS presentation. However, it is useful to the the to useful is it However, presentation. non-IFRS a is basis results separately from the results of its operating subsidiari presentation with the 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A9 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A10 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ using theequitymethod. Financial and other subsidiaries other and Financial in accordance with IFRS: net earningsand net earnings per shar ee 11 ilo o $.1 e sh per $0.41 or million $191 were per earnings operating earnings, $ and basis, share per quarter of2015. a on 46.1% of decrease a 2015, in period [3] See “Other Items” below. below. Items” See“Other [3] 2 Includes income from Sagard [2] Operating earnings shares onnon-participating Dividends Corporate operations earnings Operating ended months Three reconci a is table following The EARNINGS SUMMARY CONDENSED – RESULTS OFPOWERCORPORATIONCANADA  Operating earnings attributable t attributable earnings Operating $48 million orpart to $0.10attributable earnings Net per share, compared NET EARNINGS with $354 million or $ c include subsidiaries Other [1] Earnings per share Net earnings Other items (non-operating earnings) OPERATING EARNINGS 2015, and$309millionor$0.67p “Corporate operations of PowerC “Corporate operations t in provided is Corporation the of results the on discussion A E n g Operating and other expenses Operating andotherexpenses Income frominvestments Other subsidiaries Power Financial Net earnings earnings Non-operating O Other subsidiaries Power Financial 0 perating earnings 1 _ A P C C 10 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 (attributable to participating shareholders) participating to (attributable - 1 1 - 0 5 _ (ATTRIBUTABLE TO PARTICIPATING SHAREHOLDERS) SHAREHOLDERS) PARTICIPATING (ATTRIBUTABLE TO (attributable to shareholders)participating v [1] [1] (attributableparticipating to shareholders) 1

. i n

d d

A 1 [2] 0 (ATTRIBUTABLE TO PARTIC TO (ATTRIBUTABLE ontrolled portfolio investments

Investment Funds (excluding inc Funds (excluding Investment

, which represent most of the e the of most represent which , share and non-operating earnin non-operating and share icipating shareholders for the for shareholders icipating [3] o participating shareholders f shareholders participating o orporation”, and“Otheritems” orporation”, er share inthefourth quarter ito o nnIR fnnil m financial non-IFRS of liation

are, comparedwith $349 millio SUPPLEMENTARY NON-CONSOLIDAT OE OPRTO FCND POWER CORPORATION OFCANADA

IPATING SHAREHOLDERS) IPATING SHAREHOLDERS) .

ome from controlled portfolio investments) and from Other Inves Other andfrom investments) portfolio controlled from ome

of2015. three-month period ended March 31, 2016 were were 2016 31, March ended period three-month or the three-month period ended March 31, 2016 31, March ended period three-month the or he sections “Contribution sections he arnings of Power Corporation, are accounted for accounted are Corporation, Power of arnings below. e. In this section, the co the section, this In e. gs per share with financ with share per gs 0.77 per share in the corresponding period in 317 million or $0.69 per share in the fourth fourth the in share per $0.69 or million 317 aue: prtn ear operating easures: n or $0.76 per share in the corresponding

ED STATEMENTSOFEARNINGS

March 31, (0.31 (143 (143 0.10 0.41 2016 191 286 313 (13 (36 (46 (27 48 Ϋ ) ) ) ) ) ) )

ntributions from Power from ntributions ial measures presented presented measures ial to operating earnings”, earnings”, operating to December 31, ig, non-operating nings, (0.02 2015 0.67 0.69 309 317 319 341 (13 (13 (35 (22 46 (8 5 ) ) ) ) ) )

tments. tments.

March31, 2015 0.77 0.01 0.76 354 349 353 371 (13 (32 (18 41 5 Ϋ 5 ) ) )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 ) ) 116-05-12 2:02 PM 19 (13 (33 473 119 611 565 371 2015 11 March 31, March A

) ) 1 (27 (32 461 461 118 580 521 341 2015 December 31, 31, December

) )

29 (41 (31 419 100 548 476 313 2016 March 31, 31, March ncial ncial and other subsidiaries for the

red with $353 million for the corresponding with $565 million or $0.79 per share for the same period in 2015, and $341 million in the Corporation are Lifeco, IGM and Pargesa. mon shareholders of $476 million or $0.67 per per $0.67 or million $476 of shareholders mon earnings was $313 million for the three-month three-month the for million $313 was earnings re in the fourth quarter of 2015. quarter fourth re in the f this MD&A. this MD&A. f

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER $0.73 per sha per $0.73 POWER CORPORATION OF CANADA OF CORPORATION POWER rating earnings from Power Fina $521 million or nancial’s results, see Part B o 31, 2016 was $286 million, compa ng earnings attributable to com ended March 31, 2016, compared in the quarter of 2015. fourth in the

POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 1 A

d d (attributable to Power Financial common shareholders) common Financial Power to (attributable n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P Lifeco IGM Pargesa _ 1 Power Financial’s operating earnings are summarized below: corresponding in 2015, and period share for the three-month period period ended March 31, 2016, compared with $371 million in the the in million $371 with compared 2016, 31, March ended period fourth quarter of 2015. Power Corporation’s share Power Financial’s contribution to Power Corporation’s operating Three months ended Contribution to operating earnings from: of Power FinancialCorporate operations Dividends shares on perpetual preferred Operating earnings  EARNINGS TO OPERATING CONTRIBUTION Power Corporation’s share of ope Power Financial Power Financial reported operati three-month three-month period ended March 2015, and $319 million period in The reportable operating segments of Power Financial and Power Power and Financial of Power segments operating The reportable For more information on Power Fi

0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A11 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A12 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _   fourth quarterof2015. was $419 million,Lifeco’s contribution compared toLIFECO Power Financial’s with $473 operating million earnings f for the correspond See Part C ofthisMD&Afor more information onLifeco’s result E n g

0 1 Summary of Lifeco’s operating results: segment period three-month the for share earnin operating reported Lifeco the corresponding period in 2015 in period corresponding the share inthefourth _ A United States Canada Corporate Group Insurance Management Wealth Individual Insurance Canada Three monthsended Operating earnings for the three-month period ended March 31, 2 31, March ended period three-month the for earnings Operating Europe Operatingearnings for the three-monthUnited States period ended March 31, 2 Operating earnings Canada for the three share Power Financial’s Operating earnings Corporate Lifeco Europe Corporate Reinsurance andAnnuities Insurance Europe U.S. Corporate Asset Management Services Financial corresponding period in 2015. corresponding periodin2015. (C$58 million US$51 of decrease correspondi the for $299 million driven byamanagement toclaim election foreign tax credits. st to related expenses operating contr lower the to due primarily impact the experience, morbidity experience, partially offset experience, partially P C C 12 _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 1 1 - 0 5 _ v 1 . i n d d

(attributable toLifeco shareholders)common

A 1 quarter of2015. 2 bylowerincometaxes.

gs attributable to Lifeco commo Lifeco to attributable gs ended March 31, 2016, compared 2016, 31, March ended million) when compared with the with compared when million) aei ad uies developmen business and rategic -month period ended March 31, 2 31, March ended period -month , a decrease of 11.0% on a per a on 11.0% of decrease a , of lower equity market levels market equity lower of g eid n 05 Te decrease The 2015. in period ng btos rm netet experi investment from ibutions OE OPRTO FCND POWER CORPORATION OFCANADA

s. s. or the three-month period ended March 31, 2016 31, March ended period three-month the or

n shareholders of $620 million or $0.625 per $0.625 or million $620 of shareholders n n pro i 21 ad 41 ilo i the in million $461 and 2015 in period ing share basis, and $683 million or $0.688 per n oe contributi lower and 016 were $287 million, comparable to the the to comparable million, $287 were 016 same quarter last year. The decreasewas 016 were US$47 million US$47 were 016 with $700 million or $0.702 per share in in share per $0.702 or million $700 with t, partially offset by lower income taxes ne lwr e fe noe n higher and income fee net lower ence, 016 were $276 million, compared with with compared million, $276 were 016 wasprimarily due toless favourable

March 31, 2016 419 620 287 226 276 101 (25 63 63 90 16 67 92 (6 (2 (2

) ) ) ) December 31, ons from investment from ons (C$63 million), a a million), (C$63 2015 461 683 303 234 125 262 119 73 41 86 18 74 51 (7 (4 (2 ) ) )

March31, 2015 473 700 286 216 121 120 299 109 122 77 77 (6 (7 (1 (9 2 ) ) ) )

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6 ) 116-05-12 2:02 PM ) 57 57 32 (80 191 191 280 200 119 2015 (2.5 73.5 73.5 70.9 2014 141.9 141.9 13 behalf of March 31, 31, March A December 31, 31, December

)

51 36 ) (79 190 277 198 118 2015 or $0.69 per share share per $0.69 or (2.7 76.5 76.5 74.6 2015 148.4 148.4 December 31, December March 31,

) 36 34

(66

163 233 167 100 2016

)

(3.0 March 31, March 74.9 61.7 2015 133.6 e assets for the three three the for assets fund mutual e average daily mutual fund assets of of assets fund mutual daily average

rch 31, 2016, compared to the same rch 31, 2016, compared to the same average of 5, as well as a decline in the average average the in decline a as well as 5,

rtaken in 2015 to improve support in in support improve to 2015 in rtaken $200 million or $0.80 per share in the December 31, 31, December

lders lders of $167 million

areholders were as follows: areholders were as 15, and offset, in part, by an increase in the the in increase an by part, in offset, and 15, g period in 2015, and $118 million in the e basis, and $198 million or $0.81 per share in system related in system projects. (a non-IFRS measure, as discussed in Part D )

$100 million for the three-month period ended ended period three-month the for million $100 (3.0 75.2 75.2 60.7 2016 2016 132.9 ther) March 31, 31, March ther ther ment less an adjustment for assets sub-advised by Mackenzie on FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

s due to the decrease in averag g largely from initiatives unde preferred share dividends and o share dividends preferred POWER CORPORATION OF CANADA OF CORPORATION POWER the three-month period ended Ma the three-month period ended Ma million for the correspondin the for million available available to IGM common shareho st and taxes of IGM’s segments segments IGM’s of taxes and st ncial’s operating earnings was stment income; and and stment income; preferred share dividends and o preferred share as the effect of continuing investments as the effect of continuing investments ement were as follows: ement were as follows: POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER

[1] (before interest, income taxes, (before interest, income taxes, IGM common shareholders) to (available 3 1 A

d d n i . 1 v _ 5 0 - 1 1 A decrease in revenues primarily resulting from the decrease in decrease the from resulting primarily revenues in decrease A A decrease in commission expense A decrease in revenues primarily resulting from the decrease 2.5% in in the first quarter of 2016 from the fee rate; management first quarter of 201 A decrease in net inve An increase in expenses resultin several areas, as well March 31, 2016. months ended 18.8% in the first quarter of 2016 from the first quarter of 20 average management fee rate; and - InvestorsGroup and Investment Planning Counsel. 6 1

0 2 _ period in 2015, due to: due to: in 2015, period due to: in 2015, period Investors Group Mackenzie Corporate and other Total [1] Includes Investment Planning Counsel’s assets under manage Mackenzie Operating earnings decreased in dollars) of (In billions Investors Group Group Investors Operating earnings decreased in Three months ended Three months ended Investors Group Mackenzie Corporate and other Operating earnings income taxes, Interest expense, Operating earnings Power Financial’s share      Total assets under manag Operating earnings before intere IGM reported operating earnings of this MD&A) and operating earnings available to IGM common sh common to IGM available earnings operating and MD&A) of this for the three-month period ended March 31, 2016, compared with corresponding period in 2015, a decrease of 13.8% on a per shar in the fourth quarter of 2015. fourth in the C C

P _ 1

   FINANCIAL IGM IGM’s contribution to Power Fina  March 31, 2016, compared with $119 fourth quarter of 2015. of 2015. fourth quarter 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A13 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A14 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ Pargesa’s contributiontoPower PARGESA   SF/CAD Euro/SF Three monthsended t for rates exchange average The share Power Financial’s Operating earnings expensesGeneral andtaxes charges Net financing andotherinvestmen equityactivities Contribution fromprivate holdings Contribution fromprincipal francs) Swiss of millions (In Three monthsended follows: The components ofPargesa’s quarter of2015. $19 with compared 2016, 31, March See Part DofthisMD&Afor more information onIGM’s results. [1] Lafarge contributed to Pargesa’s earnings until June 30, 2 June until earnings Pargesa’s to contributed Lafarge [1] E n Dividends from: of: Share ofearnings g

0 1 Total Pernod Ricard SGS Lafarge Imerys average dailymutualfund Total _ A changes on domestic and foreign and domestic on changes Changesin average daily mutualmanage under assets fund Counsel’s Planning Investment Includes [1] assetsunder management Total ov Corporate andother Mackenzie Investors Group (In billions ofdollars) first quarter of 2016. first quarter fourth and third the in 0.6% and 2.1% by declined they however, P C C 14 _ Investors Group and Investment Planning Counsel. Counsel. Planning Investment and Group Investors 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1

[1] 6 -

1 1 - 0 5 _ v 1 . i n d (in millions ofCanadian dollars) d

[1] A 1

4 operating earnings were: earnings were: operating Financial’s operatingearnings e he-ot pro edd Mar ended period three-month he assets under management were as million in the corresponding the in million markets. These average assets i assets average These markets. OE OPRTO FCND POWER CORPORATION OFCANADA

015.

t funds t funds

ment less an adjustment for assets sub-advised by Mackenzie on Mackenzie by sub-advised assets for adjustment an less ment

was $29 million for theth million $29 was

period in 2015, and $1 million in the fourth fourth the in $1 million and 2015, in period 4.2 h 1 21 ad ac 3, 05 ee as were 2015 31, March and 2016 31, ch quarters of 2015, and declined 2.7% in the in 2.7% declined and 2015, of quarters ncreased in the first two quarters of 2015; of quarters two first the in ncreased follows:

124.4 er the past five quarters largely reflect reflect largely quarters five past the er 2016 46.7 73.5

Q1

March 31, March 31, C$1.38 SF1.10 127.8 48.5 75.3 2016 2016 4.0 Q4 29 77 26 58 41 26 (5 (2 (9 Ϋ Ϋ

) ) )

ree-month period ended

December 31, 128.6 49.2 75.4 4.0 March31, Q3 C$1.30 SF1.07 SF1.07

2015 2015 (13 (44 58 22 11 25 1 1 Ϋ Ϋ Ϋ 131.4

) )

50.6 76.8

4.0 Q2

March31, Change% behalf of of behalf 129.9 2015 2015 50.5 75.5 2015 3.9 6.2 2.8 Q1 19 54 53 37 23 (8 (7 7 2 Ϋ Ϋ

) )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM ʹͲͳͷ 15 ƒ” Š͵ͳǡ A ΫȋʹȌ ͸Ϋ Ͷ͵Ͷ ͺͳͳ Ͷ͸ Ͷͳ ͷ͸ ͳ ȋʹͺȌ ȋ͵Ȍ ʹͲͳͷ —„•‹†‹ƒ”‹‡•dzǤ ••‘ˆ̈́ʹ͹‹ŽŽ‹‘ˆ‘”–Š‡ ‡ ‡„‡”͵ͳǡ

5 Ϋ (3) (4) (10) (46) (34) 2016 March 31, ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ ™ƒ•  ‰‹‡ ȋ‹••—‡† ‹ ʹͲͳ͵ ƒ† ‡š’‹”‹‰ ‹ ‹‘† ‘ˆ ʹͲͳͷǤ ƒ‹• ”‡Žƒ–‡† –‘ –Š‡•‡ ƒŽŽ ”‹˜ƒ–‹˜‡ ˆ‹ƒ ‹ƒŽ ‹•–”—‡–• ”‡Žƒ–‡† –‘ ͳͷǤ–ƒ”–‹‰‘–Šƒ–†ƒ–‡ǡ–Š‡‹˜‡•–‡–‹ Šƒ‰‡ƒ„Ž‡ ˆ‘” ‰‹‡ •Šƒ”‡• ƒ† ‹ „‘†• Šƒ†’”‡˜‹‘—•Ž›‹••—‡†„‘†•‡š Šƒ‰‡ƒ„Ž‡ ˆ̈́ͳͺ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ –‡”•ȌǢ ‹–Š‡•Šƒ”‡’”‹ ‡•‘ˆ‰‹‡ƒ†‘ˆ †—”‹‰ ‡š’‡•‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ǡ†‡’”‡ ‹ƒ–‹‘ƒ† ‡”•Ȍǡ”‡ˆŽ‡ –•–Š‡ˆ‹ƒŽ‡–•‡––Ž‡‡–‘•Šƒ”‡• ƒ” Š͵ͳǡʹͲͳ͸™ƒ•‹’ƒ –‡†„›ǣ –•Ǥ ’‡”ƒ–‹‰‡ƒ”‹‰•™ƒ•ƒŽ‘ ‹–•‹˜‡•–‡–•ǣ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ’”‡•‡–‡†‡–‘ˆ‡š’‡•‡•‘ˆ–Š‡•‡’ƒ”ƒ–‡†‡†‹ ƒ–‡†–‡ƒ•Ǥ ‡†ǡ’”‡•‡–‡†‹–Š‡•‡ –‹‘Dz–Š‡”•—„•‹†‹ƒ”‹‡•dzǤ –‡”‡•–‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Ǥ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǥ †‡•±Ž‹ ‡•†‡•͹ƒŽŽ±‡•ǡ’”‡•‡–‡†‹–Š‡•‡ –‹‘Dz–Š‡”• ‹‘ ‹ –Š‡ ‘””‡•’‘†‹‰ ’‡”     POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  ȏͳȐ 5 1 A

d d n  i  . 1 ȏʹȐ v ȏ͵Ȑ _ 5 0 - 1 1 -  6 1 0 ȏͶȐ 2 _ ‰‹‡ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ƒ†–Š‹”†“—ƒ”–‡”•ȌǤ ‡–‰ƒ‹•ȋŽ‘••‡•Ȍ”‡Žƒ–‡†–‘ ƒŽŽ‘’–‹‘•‡„‡††‡†‹„‘†•‡š Š‡ƒˆƒ”‰‡ ‘Ž ‹‡”‰‡”ǡ™Š‹ Š„‡ ƒ‡‡ˆˆ‡ –‹˜‡‘ —Ž›ͳͲǡʹͲ ƒˆƒ”‰‡ ‘Ž ‹Šƒ•„‡‡ƒ ‘—–‡†ˆ‘”ƒ•ƒ  ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡ˆ‹”•–“—ƒ”–‡”ȌǢ ‡”‘†‹ ƒ”†ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ƒ†ˆ‘—”–Š“—ƒ” ‘–ƒŽȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ǡ–Š‹”†ƒ†ˆ‘—”–Š“—ƒ”– †‹•’‘•‡†‘ˆ‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸Ǣƒ† ‹••—‡†„› ‹ʹͲͳ͵™Š‹ Šƒ”‡ ‘˜‡”–‹„Ž‡ˆ‘” •Šƒ”‡•Ǥ  ˆ‘” —‡œ ˜‹”‘‡‡– ȋ‹••—‡† ‹ ʹͲͳʹ ƒ† ‡š’‹”‡† ‹ ʹͲͳͷȌʹͲͳ͹Ȍ ƒ† •Šƒ”‡•Ǥ ƒ”‰‡•ƒǯ• •Šƒ”‡ ͵ͺ‹ŽŽ‹‘ǡ ‘ˆ ‘’ƒ”‡† –‘ ‡–  ͳͳ‹ŽŽ ‰ƒ‹• ˆ‘”‘’–‹‘•ˆ‘”–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸™‡”‡†—‡–‘–Š‡†‡ ”‡ƒ•‡ –Š‡ –Š”‡‡Ǧ‘–Š –Š‡“—ƒ”–‡”Ǥ C C

P ƒ‰ƒ”†—”‘’‡ ƒ‰ƒ”†ƒ’‹–ƒŽ ƒ‰ƒ”†Š‹ƒ ˜‡•–‡–ƒ†Š‡†‰‡ˆ—†• Š‹ƒ –Š‡” _ 1 ȏ͵Ȑš Ž—†‡•–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ–Š‡”‡•—Ž–•‘ˆ –‡‰”ƒ ȏͶȐ‘•‹•–‹‰ƒ‹Ž›‘ˆˆ‘”‡‹‰‡š Šƒ‰‡‰ƒ‹•‘”Ž‘••‡•ƒ†‹ ȏʹȐš Ž—†‡•–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ–Š‡”‡•—Ž–•‘ˆŽ˜‡•–ƒ ȏͳȐ  ‘‡ˆ”‘‹˜‡•–‡–•ˆ‘”–Š‡ƒ‰ƒ”† ˜‡•–‡– —†•‹•  ‹ ‘‡–ƒš‡•Ǥ Income from investments —ƒ”›‘ˆ‹ ‘‡ˆ”‘‹˜‡•–‡–•ǣ Š”‡‡‘–Š•‡†‡† ƒ‰ƒ”† ˜‡•–‡– —†• –Š‡” ˜‡•–‡–•  Other subsidiaries Š‡ ‘–”‹„—–‹‘ˆ”‘‘–Š‡”•—„•‹†‹ƒ”‹‡•–‘–Š‡‘”’‘”ƒ–‹‘ǯ•‘ CORPORATION OPERATIONS OF POWER CORPORATE ‘”’‘”ƒ–‡‘’‡”ƒ–‹‘•‹ Ž—†‡‹ ‘‡ˆ”‘‹˜‡•–‡–•ǡ‘’‡”ƒ–‹‰    ƒ”‰‡•ƒǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†     –Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–ŠƒŽ‘••‘ ʹͲͳͷǡƒ†ƒŽ‘••‘ˆ̈́ʹʹ‹ŽŽ‹‘‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ Š‡ ’‘•‹–‹˜‡ ‘Ǧ ƒ•Š ‹’ƒ – ƒ– ‡š Šƒ‰‡ƒ„Ž‡„‘†•Ǥ ‘ˆ –Š‡ ƒ” –‘ ƒ”‡– ‘ˆ †‡ •‹‰‹ˆ‹ ƒ–’‘”–‹‘‘ˆƒ”‰‡•ƒǯ•‡ƒ”‹‰•ƒ”‡†‹˜‹†‡†•ˆ”‘ ‡‡ƒ”–‘ˆ–Š‹•Ƭˆ‘”‘”‡‹ˆ‘”ƒ–‹‘‘ƒ”‰‡•ƒǯ•”‡•—Ž 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A15 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A16 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ OTHER ITEMS OTHER ITEMS Operating andotherexpenses taxes andincome Depreciation charges Financing Operating expenses ended months Three Operating andotherexpenses 2015, of period corresponding the in million $41 of gain a with three the for million $46 of loss a was investments from Income  Other subsidiaries Power Financial ended months Three on many factors, including thet In Other from as well as Funds, Investment Sagard from Earnings of 2015. noe rm netet i te is qatr osse mil o investments. mainly signific a to consisted due China quarter Sagard at million first $4 and Capital Sagard the in investments from Income E n g Pargesa IGM 0 1 Other (charge) income income Other (charge) Imerys – Impairment and restructuring charges Engie –Impairmentcharge –Impairmentcharge LafargeHolcim Environnement Suez disposal – Gainonpartial Total andothercharges Restructuring _ A P C C 16 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 (NON-OPERATING EARNINGS) 5 _ v 1 . i n d d

– A 1

Gain onexchange 6 imingof disposalsanddistribu

OE OPRTO FCND POWER CORPORATION OFCANADA

tions.

ant or prolonged decline in the value of certain certain of value the in decline prolonged or ant -month period ended March 31, 2016, compared 2016, 31, March ended period -month and a gain of $46 million in the fourth quarter vestments, are volatile in nature as they depend depend they as nature in volatile are vestments, ipimn cags f 4 mlin at million $42 of charges impairment f

March 31, March 31, March (143 (143 (203 2016 2016 67 36 25 (1 (6 Ϋ Ϋ Ϋ Ϋ 3 8 ) ) ) ) )

December 31, December 31, 2015 2015 (13 (17 (10 32 35 25 (8 5 Ϋ Ϋ Ϋ Ϋ 2 8 ) ) ) )

March31, March31, 2015 2015 32 21 (2 5 Ϋ 5 Ϋ Ϋ Ϋ 1 6 Ϋ 3 8 )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 17 A on and restructuring nnement’s nnement’s exchangeable third-party back office relationships relationships office back third-party charge representing non-operating items ilfield Solutions divisi mpairment charge of €1,443 million at GBL g severance and payments to third parties ulting from delivery of Suez Environnement charge at GBL. ointly controlled corporation. olders of Suez Enviro f an additional 0.4% equity interest in Total. in Total. interest equity 0.4% additional f an f a 1.1% equity interest in Total. interest f a 1.1% equity lcim. lcim. a 0.1% equity interest in Total. a 0.1% equity interest a global provider of mineral-based specialties). specialties). of mineral-based provider global a of the following: following: of the y comprised of the following: y comprised of the FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA OF CORPORATION POWER uring charges of $17 million: a arges of $10 million: reflectin million: $10 of arges the impairment charge on its O its on charge impairment the tment tment management activities and million: a non-cash impairment impairment a non-cash million: of $32 million: GBL disposed o GBL disposed million: $32 of of $67 million: GBL disposed o GBL disposed of $67 million: of GBL disposed of $6 million: of the share price of LafargeHo of the share price ion of S&B’s activities (S&B is ion of

of 2016 comprised were of 2016 mainly e and Investors Group. e ourth quarters of 2015 were mainl ourth quarters of ment charge of $203 million: a non-cash i POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 1 A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ related to exiting certain associated with Mackenzi inves IGM – Restructuring and other ch partial disposal on Gain Total – Imerys – Impairment and restruct recorded by Imerys, comprised of charges relating to the integrat j a in investment an on million $13 of charge Impairment – SVCG Engie – Impairment charge of $6 charge Engie – Impairment res gain a disposal partial on Gain Total – million: $1 of exchange on Gain – Environnement Suez Total – Gain on partial disposal on Gain Total – LafargeHolcim – Impair decrease due to the significant shares pursuant to the exercise of exchange rights by certain h certain by rights exchange of exercise the to pursuant shares bonds. C C

P _ 1    Other subsidiaries FOURTH QUARTER   Power Financial The Corporation’s share of: FIRST QUARTER   FOURTH QUARTER  quarter the first items in Other Power Financial The Corporation’s share of: FIRST QUARTER   Other items in the first and f first Other items in the 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A17 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A18 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ 3 o-otoln itrss o cnoiain dutet rep adjustments consolidation for interests Non-controlling [3] Participa the includes Lifeco for interests Non-controlling [2] Reinsurance assets ceding insurers by Funds held Investments in jointly controlled inParjointcoInvestment Investments insubsidiariesatequity Investments equivalents Cash andcash Assets c the with IFRS, with Corporation atMarch31,2016. accordance in not is which sheet, balance below presented are sheets balance non-consolidated Financial’s subsidiari other and IGM Lifeco, of sheet balance condensed The CONSOLIDATED BALANCESHEETS FINANCIAL POSITION  in Consolidation adjustments [1] andequity liabilities Total Total equity interests Non-controlling equity shareholders’ Participating shares Non-participating Equity liabilities Total Insurance andinvestmentcontracts Other liabilities Debentures and other debt entities tosecuritization Obligations Insurance andinvestmentcontract Liabilities Total assets Interest onaccount ofsegregated Goodwill Intangible assets Other assets E n g corporations and associates andassociates corporations policyholders ofsegregatedfund on account instruments liabilities fund policyholders subsidiaries. subsidiaries. 0 1 _ A P C C 18 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 5 _ v 1 . i n d d

[2, 3]

A 1 8

clude eliminations and reclassi and eliminations clude Corporation 14,055 11,056 (CONDENSED) 14,055 13,357 12,387 1,864 Power 970 698 298 400 381 754 Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ OE OPRTO FCND POWER CORPORATION OFCANADA

Financial 19,629 16,057 19,629 18,868 16,288 2,580 2,543 Power 761 511 250 127 840 ting Account surplus in subsidiaries. subsidiaries. in surplus ting Account

62 Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ fications. fications.

eet nncnrlig neet i te qiy f oe Financ Power of equity the in interests non-controlling resents 365,714 193,001 157,468 390,245 193,001 156,117 390,245 12,954 24,531 19,161 2,514 9,961 5,284 5,896 3,878 9,709 5,144 2,923 2,856 Lifeco 265 358 Ϋ Ϋ

10,022 14,791 14,791 1,542 1,325 7,155 2,660 1,974 7,642 4,769 4,619 150 978 930 607 IGM es, as well as Power Corporation’s and Power Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ ondensed consolidated balance sheet of the the of sheet balance consolidated ondensed Ti tbe eocls h non-consolidated the reconciles table This .

subsidiaries 1,539 2,347 2,347 Other 799 740 461 310 863 160 131 164 258 808 808 752 56 Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ

adjustments Consolidation (28,348 (28,532 (28,348 (28,067 (40,820 17,997 (5,244 (281 (238 (284 (621 637 425 (43 27 [1] Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ ) ) ) ) ) ) ) ) ) ) )

Consolidated balance sheets March 31, March 412,719 378,453 193,001 157,468 412,719 193,001 166,274 34,266 20,909 12,387 12,873 11,774 12,954 Power Corporation Corporation Power 7,956 7,155 9,654 6,162 5,144 2,543 4,761 2016 970 452 Ϋ

ial and Other Other and ial December 31, 422,859 387,352 198,194 160,745 422,859 198,194 168,236 35,507 21,479 13,058 13,286 11,684 15,512 8,035 7,092 9,669 6,301 5,131 2,610 5,085 2015 970 437 Ϋ

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POWER CORPORATION OF CANADA 2 1 - 5 0 -

6

116-05-12 2:02 PM 831 486 400 290 690 970 2015 1,966 19 11,435 14,718 13,058 14,028 14,718 A December 31, December s. ed income securities

754 381 400 298 698 970 2016 2016 1,864 1,864 11,056 11,056 14,055 12,387 13,357 14,055 March 31, 31, March

an dollar strengthened against the U.S. U.S. the against strengthened dollar an on decrease from December 31, 2015, regated fund policyholders decreased by

by $5.2 billion, primarily due to the impact of of $5.7 billion, partially offset by net deposits offset partially of $5.7 billion,

billion, primarily due to the strengthening of nd non-consolidated balance sheet of Power stments in subsidiaries are presented by the ance sheets, which are not in accordance with with accordance in not are which sheets, ance nges in Power Corporation’s non-consolidated f the consolidated balance sheets of Lifeco and ound, partially offset by the impact of fair value ared with $387.4 billion at December 31, 2015, March March 31, 2016, compared with $422.9 billion at t equity. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ininvestments in the Interim Consolidated Financial Statement include $231 million ($191 million at December 31, 2015) of fix e $166.3 billion, a $2.0 billi POWER CORPORATION OF CANADA OF CORPORATION POWER t liabilities decreased by $3.3 U.S. dollar, euro and British p he impact of currency he impact of currency movements hod. These non-consolidated bal presentation shown below, inve investments in subsidiaries a

billion at March 31, 2016, comp

[2] due to the following: following: due to the POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER lance sheets, cash equivalents

BALANCE SHEETS [1] 9 1 A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ primarily due to the impact of currency movements as the Canadi the as movements currency of impact the to due primarily of $0.5 billion. the Canadian dollar against the Insurance and investment contrac Insurance and investment contract liabilities on account of seg Investments Investments at March 31, 2016 wer British pound. and dollar, euro Interest on account of segregated fund policyholders decreased due primarily to t $5.2 billion, adjustments. currency movements. currency movements. C C with maturities of more than 90 days. This amount isclassified

P _ 1 December 31, 2015, mainly 31, 2015, December [2] Includes controlled portfolio investments. investments. [2] portfolio controlled Includes [1] In these non-consolidated ba non-consolidated these In [1] Investments in subsidiaries at equity Other assets Total assets Liabilities Debentures Other liabilities Totalliabilities Equity Non-participating shares Participating shareholders’ equity Total equity Totalliabilities and equity NON-CONSOLIDATED In the non-consolidated basis of Assets Cash and cash equivalents Investments   Part B of this MD&A includes a discussion Financial of and Parts the C and consolidated D of a this MD&A include a discussion o IGM, respectively.  Total assets of the Corporation decreased to $412.7 billion at   Liabilities decreased to $378.5 the following: to due mainly Corporation using the equity met balance sheets, which include its IFRS, enhance the MD&A and assist the reader by identifying cha 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A19 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A20 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ [4] Total fair value includes $893 million of investments at Ma at investments of million $893 includes value fair Total [4] [3] Including cash, the fair value of Sagard China’s portfolio portfolio China’s Sagard of value fair the cash, Including [3] 2 Including[2] cash and Sagard Capital’s investment in IntegraMe hedge fundsandotherinve details). with $831 million at the end of [1] Including Sagard Europe’sTotal investment in Alvest and Les Déli Other Investments Sagard Investment Funds Investments amountedto$1,864m Investments Cash and cash equivalentsCash and cashequivalents held b  Carrying value, at March 31,2016 atMarch value, Carrying theyear atthebeginningof value, Carrying Power in investments Corporation’s Power of value carrying The Investments inPowerFinancia March At investments. other and funds hedge of number selected to sufficient be will funds these amo aggregate an for funds equity $388 million31, March At funds. equity andprivate in theinvests Corporation CorporationPower had outstanding commitments to These investments,which are shown inthe table below, are clas decreased to $11,056 millionat decreased to

E n Investment and Investment hedge fundsandother China AMC Sagard China Sagard Capital Sagard Europe g Other, mainly related to effects of change in ownership related inownership ofchange Other, mainly toeffects Dividends Share ofothercomprehensiveincome Share ofotheritems earnings Share ofoperating Investments insubsidiaries 0 active markets. active markets. Other subsidiaries” below), the below),the Other subsidiaries” December 31, 2015). December 31,2015). Power Financial and Other subsidiaries” below), the fair value value fair the below), subsidiaries” Other and Financial Power 1 _ [4] A P C

C 20 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 [3] 1 - [2] [1] 0

5

_ v 1 . i n d d

A 2 0 fair value of Sagard Capital’s Sagard Capital’s valueof fair stments was$76million. l and in Other subsidiaries subsidiaries Other l andin March 31, 2016,compared with$

meet these outstanding commit eebr 05 se “Non-consoli (see 2015 December y Power Corporation amounted to amounted Corporation Power y illion atMarch31,2016,compa n o $7 ilo. h Corpo The million. $172 of unt

1,418 POWER CORPORATION OF CANADA POWER CORPORATION OFCANADA 288 282 418 270 160 Cost 38

at March 31, 2016 was$638milli at March 31,2016

portfolio at March 31,2016was$ portfolio d at fair value (which is presented at equity in “Investments i “Investments in equity at presented is (which value fair at d rch 31, 2016 ($972 million at December 31, 2015) valued using q using valued 2015) 31, December at million ($972 2016 31, rch ces des 7 Vallées at fair value (which are presented at equity equity at presented are (which value fair at Vallées 7 des ces Unrealized of Sagard Europe’s portfolio atMarch 31, 2016 was $263 million gain (loss) (loss) gain 446 176 190 28 14 198

March 31, 2016 sified as available-for-sale investments. sified asavailable-for-saleinvestments. Fair value 11,435 million atDecember31,2015: ments. The Corporation has also invested in a 2016, the fair value of these investments was investments these of value fair the 2016, 31, 2016, the fair value of these investments in investments these of value fair the 2016, 31, 1,864 red with$1,966 million a Financial and in Other subsidiaries, at equity, at subsidiaries, Other in and Financial ration expects that future distributions from from distributions future that expects ration make future capital contributions to private 464 310 432 460 dated Statements of Cash Flows” below for for below Flows” Cash of Statements dated $754 million at March 31, 2016, compared 2016, 31, March at million $754 on ($666 million atDecember31 on ($666million

952 million ($951 million at D at ($951million 952 million Financial 10,684 11,131 1,447 Power (184 (392 (143 281 282 462 268 154 313 Cost (41 Ϋ

) ) ) )

subsidiaries Unrealized gain (loss) (loss) gain t December31,2015. Other 372 178 304 519 213 202 (39 (44 (27 , 2015). n Power Financial and and Financial Power n 28 36 40 Ϋ Ϋ ecember 31, 2015). ecember 31,2015). ) ) )

December 31, 2015 in “Investments in “Investments in

($257 million at at million ($257 uoted prices in in prices uoted Fair value 11,056 11,435 1,966 (184 (436 (143 Total Total 494 310 498 470 194 286 178 (80

) ) ) )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM ) ) ) ) 60 60 36 50 (30 (39 (29 367 367 190 467 495 2015 (147 21 11,008 11,743 11,743 A ) ) ) ) ) ) ) se options. Ϋ 61 80 84 (67 (10 2016 (157 (163 (532 (130 (508 13,058 12,387 12,387 g Preferred Shares of the Corporation f this MD&A, options were outstanding to under the Corporation’s

secured debt securities, or any combination an aggregate of $2 billion of First Preferred Preferred First of billion $2 of aggregate an Subordinate Subordinate Voting Shares of the Corporation 31, 2016, compared with $13,058 million at November 24, 2014, pursuant to which, for a 16 (same as at December 31, 2015), of which ares of the Corporation under the Corporation’s of six series of First Preferred Shares with an 26.74 at March 31, 2016, compared with $28.19 rred shares and are redeemable in whole or in ity to access debt and equity markets on a timely timely a on markets equity and debt access to ity he First Preferred Shares, 1986 Series, have a stated in 2015)

come shares

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER r $10 million representing the cumulative expenses related to the 1,251,657 POWER CORPORATION OF CANADA OF CORPORATION POWER All series are perpetual prefe of $970 million at March 31, 20 31, March at million $970 of ares of the Corporation consist Corporation with the flexibil

none in 2016 and option from specified dates. T dates. specified from option ( uity was $12,387 million at March 19,539,885 Subordinate Voting Sh

ociates’ other comprehensive in as at December 2015). 31, POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER

and includingof an amount hares ] 1 s [

s and cash flow hedges participating shares oting 1 v 2 A

d d n i . 1 v _ 5 0 - ubordinate 1 s 1

- 6 1 0 2 _ Foreign currency translation adjustments asset Available-for-sale Actuarialgains (losses) related to benefit plans Share of Pargesa’s and other ass C C P Other comprehensive income (loss) Share-based compensation Executive Stock Option Plan Net earnings Net earnings Dividends declared Effects in ownership in of changes subsidiaries and other _ 1 period of 25 months thereafter, the Corporation may issue up to up issue may Corporation the Plan. Option Executive Stock thereafter, months The Corporation 25 filed a of short-form base shelf prospectus dated period Shares, Subordinate Voting Shares, subscription receipts and thereof. This un filing provides the basis. purchase up to an aggregate of outstanding, the same as at December 31, 2015. As of the date o $ was date Corporation the the of share of participating As per value book The 2015. 31, at the end of 2015. December at of Outstanding number as same As the of the date of this MD&A, there outstanding, were 48,854,772 Participatin Issuance of Participating shareholders’ equity31 at March [1] Issued for $40 million in 2015 Participating shareholders’ equityParticipating shareholders’ Participating shareholders’ eq March 31 Three months ended Participating shareholders’ equity, at the beginning of the yea Changes in retained earnings Changes in reserves  EQUITY Non-participating shares Non-participating (preferred) sh December 31, 2015: December 31, 2015: outstanding, the same as at December 31, 2015, and 414,366,313 aggregate stated capital amount $950 million $950 million are non-cumulative. value of $20 million (same value of $20 million part solely at the Corporation’s 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A21 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A22 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ hrs f h Croain n di and Corporation the of shares C a s h f l o w s f r o m f i n a n c i n g a c t i v i company. with IFRS, has been prepared to assistthe reader as it isolate th the in million $616 of outflow flows oftheCorporation forthe IFRS, with accordance in not is which flows, cash of statement Cash and cash equivalents, equivalents, Cash andcash Increase (decrease)incash Effect ofchanges in Cash flowfrom: Three monthsended March31 The condensedCONSOLIDATED STATEMENTS OFCASHFLOWS cash flowCASH FLOWS of Lifeco, IGM and other subsidiaries, and participating share dividend share participating and financing expenses, operating less investments, from income and holdin a is Corporation Power As NON-CONSOLIDATED STATEMENTS OF CASH FLOWS compared withanetinflow of$1,209 million in thecorrespondi March 31,2016, compared with an an cash basis, consolidated a On equivalents, Cash andcash The following non-consolidated asignifican represent cash flows statement of theCorp Operating activities produced a produced activities Operating iaca’ nncnoiae cas non-consolidated Financial’s Cash flows from investingcorresp the in million $409 activities resulted in a net outflow March 31,2016, compared with a netoutflow of $83 million in t The Corporation increased its level of fixed income securities income fixed of level its increased Corporation The n e t o u t f l o w o f $ 4 0 m i l l i o n i n t h e t h r e e - m o n t h p e r i o d e n d e d M a r c respectively. respectively. Parts B,corresp the C in million $122 and D of this MD&A include a discussion of the cash E n g year of the at thebeginning equivalents and cash equivalents and cash rateson cash exchange at March 31 at March Investing activities activities Financing Operating activities 0 1 _ A P C C 22 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 5 _ v 1 . i n d d

t componentofthe Corporation’scorporat A 2 2

Financial Financial Power (298 840 870 284 onding period of 2015.onding periodof onding period of 2015. onding periodof2015. (30 (16 Ϋ ) ) )

three-monthperiodended March d cash equivalents decreased by decreased equivalents cash d net inflow of $1,279 million in million $1,279 of inflow net 2,923 2,813 1,366 g company, corporate cash flows s. Dividends received from Powe from received Dividends s. is wih nld dvdns p dividends include which ties, Lifeco (135 (708 (413 fo, r peetd eo. Th below. presented are flow, h ied pi b sbiire to subsidiaries by paid vidends 110 e-ot pro edd ac 3 March ended period ree-month increase of$827million inth ) ) ) POWER CORPORATION OF CANADA POWER CORPORATION OFCANADA (376 (228 (188 607 983 IGM 40 Ϋ ) ) )

Eliminations Eliminations (CONDENSED) (390 (478 (334 334 88 88 Ϋ PowerFinancial ) ) )

Sub-total 3,980 4,188 1,356 with maturities of more than 90 days, resulting in a in resulting days, 90 than more of maturities with (208 (135 (864 (565 s the cash flows of Power Corporation, the parent of $839 million in the three-month period ended period three-month the in million $839 of he correspondingperiodof2015. ng periodof2015. e cashflows. to the condensed consolidated statement of cash cash of statement consolidated condensed the to the three-month period ended March 31, 2016, 31, March ended period three-month the ecorresponding periodof2015. 31,2016. $324 million in the three-monthperiod ended aid on the participating and non-participating non-participating and participating the on aid are primarily comprised of dividends received received dividends of comprised primarily are ) ) ) ) oration, which is not presented in accordance accordance in presented not is which oration, charges, income taxes, and non-participating and taxes, income charges, non-controlling interests, represented a net net a represented interests, non-controlling r Financial, which is also a holding company, holding a also is which Financial, r as well as Power Corporation’s and Power Corporation 3, 06 cmae wt a e ifo of inflow net a with compared 2016, 31, h f l o w s o f P o w e r F i n a n c i a l , L i f e c o a n d I G M , i s t a b l e r e c o n c i l e s t h e n o n - c o n s o l i d a t e d , 06 cmae wt a e otlw of outflow net a with compared 2016, 1, Power (157 754 831 140 (77 (10 (50 ) ) ) ) subsidiaries Other 258 257 110 (71 (35 (3 1 ) ) ) Consolidation adjustments (231 (191 (182 146 (40 (4 Ϋ ) ) ) ) )

Power Corporation Corporation Power Consolidated cash cash Consolidated 4,761 5,085 1,279 (324 (148 (839 (616 2016 flows ) ) ) )

5,258 4,431 1,209 (409 2015 827 110 (83 ) )

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POWER CORPORATION OF CANADA 2 1 - 5 0 -

6 ) ) ) ) ) ) ) ) ) )

116-05-12 2:02 PM Ϋ (1 (2 16 40 61 16 27 (35 (13 (63 (30 (34 367 153 571 598 2015 (195 (134 (108 23 A

) ) ) ) ) ) ) ) ) )

Ϋ Ϋ (6 61 31 47 16 (15 (13 (50 (10 (77 140 401 831 754 2016 2016 (144 (157 (267 (178 were a net outflow of 2015, and included: and included: 2015, ng the three-month period ended 164 million in the corresponding period compared with $0.3725 per share in the nds of $174 million from Power Financial Financial Power from million $174 of nds suant to the Corporation’s Executive Stock ted by the depreciation of the U.S. dollar hree-month period ended March 31, 2016, iod of 2015. 2015. iod of the Corporation of $157 million, compared compared million, $157 of Corporation the re $0.31125 per share, compared with $0.29 d by $77 million in the three-month period period three-month the in million $77 by d ion in the corresponding period of 2015. The ts are comprised of investment activities of the in the corresponding period in 2015. 2015. period in corresponding in the eriod ended March 31, 2016 represented a net he three-month period ended March 31, 2016, period in 2015. controlling controlling interest in Potentia for $122 million. eriod ended March 31, 2016 e corresponding period e corresponding in FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER s POWER CORPORATION OF CANADA OF CORPORATION POWER hare, payable on May 1, 2016, er Corporation received divide ties were also negatively affec March 31, 2016, compared with $ ation’s participating shares we ing ing and participating shares by h an increase of $27 million h an increase of $27 h and cash equivalents decrease t outflow of $108 of million in th t outflow net inflow of $140 million in t vities during the three-month p ude the acquisition of the non-

vities during the three-month p onding period of 2015. onding 2015. period of POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER and Other investments. and Other investments. 3 2 ate voting shares A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ Earnings from subsidiaries not receivedEarnings from in cash charges Impairment Net gains on disposalof investments Other Option Plan, compared with $40 million in the corresponding per the corresponding in million with $40 compared Plan, Option against the Canadian dollar. pur issued were Corporation the of Shares Voting Subordinate No Cash flows from operating activi Dividends paid on non-participat Dividends declared by Power March 31, Financial 2016 were $0.3925 on per s its common shares duri in the three-month period ended dividends declared on the Corpor of 2015. of 2015. per share in corresp the corresponding period of 2015. Pow t the In 2015. of period corresponding the in million $147 with C C

P Dividends paid on non-participatingDividends paid on shares participating sharesDividends paid on Issuance of subordin Repurchase of non-participating shares from disposalProceeds of investments Purchase of investments Investment in subsidiaries Other Net earnings before dividends on non-participatingNet dividends earnings before on shares Adjusting items _ 1 compared with a net inflow of $153 million in the corresponding in million $153 of net inflow with a compared Operating activities produced a

The Corporation’s investing acti ended March 31, 2016, compared wit compared ended March 31, 2016, Proceeds from disposal of investments and purchase of investmen Sagard Investment Funds The Corporation’s financing acti The Corporation’s financing outflow of $50 million, compared with a net outflow of investments $34 in mill subsidiaries incl $157 million, compared with a ne million, $157    Increase (decrease) in cash and cash equivalents Cash and cash equivalents, at the beginning of the year March 31 at cash equivalents, Cash and On a non-consolidated basis, cas  Financing activities activities Financing activities Investing Effect of changes in exchange rates on cash and cash equivalent  March 31 months ended Three activities Operating 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A23 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A24 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ usdais nldn toe f t cnrle prflo invest portfolio controlled its of those including subsidiaries In the following table, consolid    As a holding company, PowerCorp CAPITAL MANAGEMENT  [2] Represents the non-controlling equity interests of the Corp the of interests equity non-controlling the Represents [2] Other subsidiaries include controlled portfolio investments [1] Equity Non-participating shares Debentures and other debt instruments plans. The Board of Directors of theis Corporation responsible reviews and ap for establishing capital management procedures a sud y oe Fnnil Lfc, G ad te sbiire a subsidiaries Other and IGM Lifeco, Financial, Power by issued capit consolidated Corporation’s its strategy ofmaintaining a re ietr o te ulc usdais a wl a toe f Parge of those as well as subsidiaries, public the of directors forca isresponsible Corporation the of Directors The Boardof to capital return shareholders, In order tomaintain or adjust its capital structure, the Corpo The Corporation manages its capi The Corporationmanages r e d e m p t i o n a n d r e p u r c h a s e o f p a r t i c i p a t i n g s h a r e s , n o n - p a r t i c i p participatingshares andtotale c and permanent a as shares non-participating views Corporation debentures shares, participating company’s capitalmanagement. matching the long-term nature of of nature long-term the matching purposes. With the exception of debentures and other debt instr The Corporation holds positions The Corporation E n Non-controlling interests Non-controlling equity shareholders’ Participating Power Corporation Power Corporation g

0 IGM Lifeco Power Financial adjustments Consolidating Other subsidiaries IGM Lifeco Power Financial which are shown in this table as non-participating shares. shares. non-participating as in thistable shown which are 1 maintain anappropriate creditr companies andotherinvestments s growth its pursue to flexibility financial sufficient provide provide attractivelong-termret _ A P C C 24 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 5 _ v 1 . [1] i n d d

A [2] 2 4

latively lowlevel of debt. ated capitalization reflects th reflects capitalization ated shareholders or issue capital. capital. issue or shareholders quity accountedfor81%ofcons alization includes the debentur the includes alization in long-term aswel investments tal takingintoconsideration t oration’s objectives inmanagin priiaig hrhles e shareholders’ participating , urns toshareholdersoftheCor t ivsmns Te aia s capital The investments. its ating toensurestableaccesst as opportunities present; and as opportunitiespresent; POWER CORPORATION OF CANADA POWER CORPORATION OFCANADA . oration’s subsidiaries excluding Power Financial, Lifeco, and I and Lifeco, Financial, Power excluding subsidiaries oration’s e consolidation of the Corporation’s subsidiaries. The The subsidiaries. Corporation’s the of consolidation e ration may adjust the amount of dividends paidto pital management.Manage he risk characteristicsand he olidated capitalizationatMarch31, 2016. sa and GBL, are responsible for their respective respective their for responsible are GBL, and sa trategyto investon a timelybasis in its operating ments. Debentures and other debt instruments instruments debt other and Debentures ments. es and other debt instruments of its consolidated its of instruments debt other and es proves capital transactions such as the issuance, the as such transactions capital proves l as cash and fixed income fixed and cash as l uments, the Corporation’s capital is permanent, permanent, is capital Corporation’s the uments, nd for implementing and monitoring its capital its monitoring and implementing for nd g its capital are to: are to: g itscapital o thecapitalmarkets. poration; rcue f h Croain osss f non- of consists Corporation the of tructure ost-effective source of source ost-effective

ating shares and debentures. The boards of

q u i t y , a n d n o n - c o n t r o l l i n g i n t e r e s t s . T h e e o-eore o h Croain Non- Corporation. the to non-recourse re

ment of the Corporation Corporation ofthe ment liquidity ofitsholdings. March 31, capital consistent with with consistent capital securities forliquidity 42,222 28,052 15,665 12,387 6,214 2,514 2,580 7,956 1,325 5,284 2016 150 970 740 250 400 (43 GM’s preferred shares, shares, preferred GM’s )

December 31, 43,542 29,293 16,235 13,058 6,214 2,514 2,580 8,035 1,325 5,395 2015 150 970 708 250 400 (43 )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 25 A g negative factors are model that focuses on ’s implementation and 2015 Annual MD&A. MD&A. 2015 Annual sequently, in their role as directors, they vities of Power Financial, Lifeco and IGM, ees. Certain officers of the Corporation are its controlling interest in Power Financial. Financial. Power in interest controlling its ndent measure of the credit quality of the n’s debentures is “A” with a stable outlook. outlook. stable a with “A” is debentures n’s capital requirements; however, Lifeco and and Lifeco however, requirements; capital of securities and are subject to revision or gher-rated categories, however, the obligor’s e susceptible to the adverse effects of changes changes of effects adverse the to susceptible e is the sixth highest of the 26 ratings used for is the sixth highest of the 22 ratings used for with the Corporation’s business as a holding poration’s debentures is “A” with a stable rating pective rating agencies’ websites. These ratings ratings These websites. agencies’ rating pective se described in the f Power Financial, Lifeco, IGM, Pargesa and GBL panies. Parts B, C and D of this MD&A further further MD&A this of D and C B, Parts panies. events, although qualifyin monitoring management e capacity for the repayment is substantial, but of of but substantial, is repayment the for capacity e of the Corporation has overall responsibility for ieved through a ieved through governance ject to regulatory capital requirements. Parts B, C C B, Parts requirements. capital regulatory to ject the Corporation and do not address market price price market address not do and Corporation the associated with being a significant shareholder of ation. Descriptions of the rating categories for each each for of the categories Descriptions rating ation. d of payment and the capacity of a corporation to to corporation a of capacity the and payment of d ectively. security for a particular investor. The ratings also also ratings The investor. particular a for security still strong. tive companies. The risk committee of the board of rvices sector through its controlling interest in each the board of directors of IGM provides oversight and and oversight provides IGM of directors of board the FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA OF CORPORATION POWER Poor’s (S&P) of the Corporatio nditions nditions than obligations in hi ompany ompany whose principal asset is rols to manage risks associated risks manage to rols nture rated “A” is somewhat mor nture rated “A” implies that th l interests in the financial se h financial instruments and for rmine suitability of a specific prudent approach to risk is ach is risk to approach prudent ce with the terms of each oblig ce with the terms Financial, Lifeco and IGM, resp Lifeco and Financial, ation remain unchanged from tho ation remain unchanged stments. The Board of Directors of Board The stments. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER the rating organization. 5 2 A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P _ 1 carries out its risk management mandate through various committ various of Lifeco and IGM. As a result, the Corporation through bears the risks these operating companies. The mandate respective boards of directors o are responsible for the risk oversight management function at their respec risk its out carries RISK MANAGEMENT RISK MANAGEMENT Power Corporation is a holding c certain of its main subsidiaries and IGM’s subsidiaries are sub are subsidiaries IGM’s and indepe subsidiaries main an its of certain with investors provide to intended are Dominion Bond Rating Service’s (DBRS) current rating on the Cor trend. ratings Credit res the from securities obtained of a corporation been and are indicators have of the likelihoo below in accordan meet its obligations forth set agencies the of S&P by are not a recommendation to buy, sell or hold the securities of debentures or other factors that might dete may Corporation’s not the reflect to the potential any withdrawal time at by impact assigned of all risks rating on “A” the value The long-term debt. A long-term debe Power Financial holds substantia The Corporation is not subject to externally imposed regulatory imposed externally to subject not is  Corporation The RATINGS The current rating by Standard & capacity to meet its financial commitment on the obligation is the obligation on commitment its financial to meet capacity directors of Lifeco is responsible for its risk oversight, and members of these boards and committees of these boards and, con and D of this MD&A further describe respectively. the capital management acti in circumstances and economic co The “A” rating assigned to the Corporation’s debentures by DBRS by debentures Corporation’s the to assigned rating “A” The long-term debt. A long-term debe maintenance of policies and cont company. lesser credit quality than AA, and may be vulnerable to future future to vulnerable be may and AA, than quality credit lesser considered manageable. The credit ratings of the Corpor participate in the risk oversight function at the to Power related risks describe operating com The Corporation believes that a operational risks associated wit the active oversight of its inve 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A25 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A26 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ h sae rc o Pwr oprto, oe Fnnil n is s its and Financial Power Corporation, Power of price share The OFCOMMON OWNERSHIP AND PREFERREDSHARES     following committees: r its out carries and oversight provides Directors of Board The  addition tocould complyinghave a significant effect on the business and the financi withChanges these laws, in manylaws,governmenta There are these rules laws, andLAWS, RULESANDREGULATIONS regulations, rules and regulations, m or their interpre is notcurrently aware. This description ofrisks does n could impact theinvesti before consider carefully financial conditionfollo the including Corporation, securi andthe in investment an in financialinherent risks certain are There performance,

therein aretakeninto and thetradingpriceofPowerC sub Corporation Power turmoil, market related and volatility of are deemed to besignificantor to are deemed prospe or values asset underlying Asia. its and Corporation and the by held Europe States, United an price the significant experienced Canada, in markets capital mone as well as rates, interest and inflation exchange, foreign Corpo Power adversel beyond may conditions factors Economic numerous to response in fluctuations E n g

0 1 h Rltd at ad odc Rve Cmite vres h ris the oversees Committee Review Conduct and Party Related The related risks potential Corporatio the oversees Committee Nominating and Governance The practices. consid Committee Compensation The The AuditCommittee addr parties of the Corporation. parties oftheCorporation. _ A P C C 26 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 5 _ v 1 . i n d d

account in the management of its activit A 2 6 to governance matters. to governancematters. esses risksrelated ot include all possible risks, prolonged, whichmay resultin wing risks and others discussed others and risks wing

orporation’s securitiesmaybe ng in securities of the Corpor the of securities in ng d volume fluctuations that have that fluctuations volume d subsidiaries and that have ofte have that and subsidiaries cts of such companies. These f These companies. such of cts l rules and regul rules and y affect Power Corporation and and Corporation Power affect y OE OPRTO FCND POWER CORPORATION OFCANADA ers risks associated with the with associated risks ers to financial report financial to lations andsto and theremaybeotherrisks al condition of the Corporation. The Corporation, in Corporation, The Corporation. the of condition al ation. The following is a review of certain risks that tary policies, business inve business policies, tary ies. impairment charges. Inper adversely affected. adversely affected. ties of theCorporation and in the activities of the sidiaries’ operations could be adversely impacted impacted adversely be could operations sidiaries’ elsewhere in this MD&A, which investors should investors which MD&A, this in elsewhere isk management mandate primarily through the n been unrelated to the operating performance, performance, operating the to unrelated been n and the value of the equity of the Corporation. tation by governmental agencies or the courts, actors may cause decreases in asset values that values asset in decreases cause may actors affected the market prices of equity securities ck exchange rulesthat apply totheCorporation. u s t a l s o m o n i t o r t h e m c l o s e l y s o t h a t c h a n g e s ing. ubsidiaries may be volatile and subject to to subject and volatile be may ubsidiaries In recent years, financial markets have have markets financial years, recent In its subsidiaries, including fluctuations in in fluctuations including subsidiaries, its Corporation’s compensation policies and and policies compensation Corporation’s ains n sc sbiire’ control. subsidiaries’ such and ration’s ks related to transactions with related related with transactions to related ks n’s approach to appropriately address address appropriately to approach n’s ofwhich the Corporation stment and the health of iods ofincreasedlevels 116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 27 A strument will fluctuate currencies and converting non-Canadian s not changed materially from what is nd its subsidiaries have each established ion of assets arising from changes in equity equity in changes from arising assets of ion nge levels when adverse changes in foreign sk management policies; ee types of risks: currency risk, interest rate s of a financial instrument will fluctuate as a nd nd Power Corporation’s risk management, please e to meet all cash outflow obligations as they they as obligations outflow cash all meet to e sh flows of a financial in financial a of flows sh asis by senior management of the Corporation urposes; edures designed to identify, measure, monitor ote 21 to the Corporation’s 2015 Consolidated spectively Power Financial’s, Lifeco’s and IGM’s se se of derivative financial instruments, which in ts. The key risks related to financial instruments ion if a counterparty in a transaction fails to meet meet to fails transaction a in counterparty a if ion not as market-makers in such derivatives. idiaries use derivative financial instruments. When FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA OF CORPORATION POWER inty associated with the valuat uring their consistency with ri uring their consistency with f financial instruments risk ha hat the fair value of future ca of the hedging relationships; a relationships; of the hedging e instruments for speculative p market interest rates. red and reviewed on a regular b d Financial Statements and to N ciated with financial instrumen y act as limited end-users and and limited end-users as act y POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER l instruments risk. risk and market risk. risk. market and risk 7 2 A

d d n i . 1 v _ 5 0 - 1 1 - markets. Interest rate risk is the risk t Equity price risk is the uncerta earnings at different points in time at different foreign excha foreign different at time in Currency risk relates to points the Corporation operating in different different at earnings currency exchange rates occur. because of changes in the 6 1 0 2

_ prohibiting the use of derivativ use of prohibiting the transactions and ens documenting demonstrating the effectiveness hedging relationships. monitoring the result of changes in market factors. Market factors include thr include factors Market factors. market in changes of result risk. price equity and risk Market risk is the risk that the fair value or future cash flow cash future or value fair the that risk the is risk Market Liquidity Liquidity risk is the risk that the Corporation will not be come due. abl Corporat the to loss financial for potential the is risk Credit its obligations. x x x C C

P _ 1 described in the 2015 Annual MD&A. For a further discussion of refer to the Interim Consolidate Power Corporation’s management o

using such derivatives, they onl such using     FINANCIAL INSTRUMENTS subs its and Corporation the activities, DERIVATIVE FINANCIAL INSTRUMENTS their of course the In and mitigate material risks asso   RISK INSTRUMENTS FINANCIAL Power Corporation has established policies, guidelines and proc   Financial Statements. Parts B, C and D of this MD&A describe re describe MD&A this of D and C B, Parts Statements. Financial are liquidity risk, credit risk, are liquidity The use of derivatives is monito management of financia and by senior management of its operating policies, subsidiaries. guidelines and The procedures Corporation relating to a the u particular focus on: 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A27 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A28 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ at B C n D f hs DA rvd ifrain n h types the on information provide MD&A this of D and C B, Parts transactions at Lifecoand regular hedging activities. Power Financial, Lifecoand IGM, respectively. i n a g a i nincrea an and outstanding amount p o s i t i o n )p r i m a r i l y d u e t o a n i n c r e a s e o f $ 2 . 2 b i l l i o uig h tremnh eid e period three-month the During Power Corporation portfolio: derivatives subsidiaries’ its and Corporation in instruments derivative of use There were no major changes to the Corporation and its subsidia  subsidiaries from those reported in the 2015 Annual MD&A. Annual the 2015 in reported those from subsidiaries At March 31, 2016, there had been no materialCOMMITMENTS ANDCONTRACTUALOBLIGATIONS changes in the co ontheadverse effect consolidat it is not expected that anyof the existing legal actions, eith Corporatio the of position financial consolidated the on effect certainty with proceedings these no the in arising actions, class subsidia its and Corporation The CONTINGENT LIABILITIES lette existing renew to unable is it if alternatives collateral insurance andinvestmentcontrac beneficiaries. A beneficiary will typically hold a letter ofIn cr the normalLETTERS OF CREDIT courselikelihood of which cannotbe determined. ofo outcome the on dependent are amounts the Lifeco’sand amount maximum a pa third pay to required be could subsidiary or Corporation the reinsurancereaso a making of possibility the precludes which of nature the In the normal course of business, their operations, the CorporationGUARANTEES and i LifecoOFF-BALANCE SHEETARRANGEMENTS p Corporation’s 2015 Consolidated Financial Statements.) Statements.) Financial Consolidated 2015 Corporation’s E n Other subsidiaries IGM Lifeco Power Financial g 0 1 _ A P C C 28 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 - 0 5 _ v 1 . i n d d

A 2 8 rmal course of business. It is It business. of course rmal ed financial positionof theCo ad t s osbe ht n ad an that possible is it and , isaefo iet ie subj time to time from are ries t liabilitiescededtooramoun h frt ure o 21. The 2016. of quarter first the se in the maximum credit risk ( risk credit maximum the in se dd ac 3, 06 tee a a was there 2016, 31, March nded

POWER CORPORATION OFCANADA

22,595 19,106 Notional 3,214 141 90 44

Maximum credit risk edit as collateral in order to secure statutory credit for for credit statutory secure to order in collateral as edit er individually or in the aggregate, will have a material 675 602 inherently difficult to predict the outcome of any of of any of outcome the predict to difficult inherently 66 rporation. n. However, based on information presently known, presently information on based However, n. Ϋ 7 Ϋ ts subsidiaries may enter may subsidiaries ts (2 March 31,2016 March nable estimate of the maximum potential amount potential maximum the of estimate nable ts duefrom Lifeco. Lifecomay berequired toseek rties, as some of these agreements do not specify specify not do agreements these of some as rties, s f rdt n auiy (e Nt 3 t the to 31 Note (See maturity. on credit of rs n in forward settling to-be-announced security security to-be-announced settling forward in n verse resolution could have a material adverse adverse material a have could resolution verse

ries’ policies and procedures with respect to the to respect with procedures and policies ries’ this represents the market value of instruments instruments of value market the represents this ntractual obligations of the Corporation and its its and Corporation the of obligations ntractual ect to legal actions, incl actions, legal to ect following table provides a summary of the rovides letters of credit to other parties or or parties other to credit of letters rovides fair value of derivative financial instruments used by by used instruments financial derivative of (1,404 (1,413 n i n c r e a s e o f $ 3 . 0 b i l l i o n i n t h e n o t i o n a l f future contingent events, the nature and and nature the events, contingent future f Total (4 8 7 ) ) ) )

Notional 19,606 16,712 2,702 138 11 43 into certain agreements, agreements, certain into

uding arbitrations and arbitrations uding

Maximum credit risk 520 461 58 December31,2015 Ϋ 1 Ϋ

fair value (2,169 (2,163 Total (2 (5 Ϋ 1 ) ) ) )

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 29 A December 31, 2015. ithin the Power Corporation group of t affect the reported amounts of assets, . These transactions are reviewed by the tee composed entirely of Directors who are controlling controlling shareholder. The mandate of this managements of its subsidiaries include: the transactions are in the normal course of of course normal the in are transactions he Corporation and the managements of its its of managements the and Corporation he e services for employee benefit plans relating Annual MD&A and in the notes to the 2015 2015 the to notes the in and MD&A Annual es of the Corporation, including its controlling controlling its including Corporation, the of es 199 million available to reduce future taxable taxable future reduce to available million 199 Power Corporation, Power Financial, and Lifeco Corporation’s critical accounting estimates and and estimates accounting critical Corporation’s liabilities, liabilities, fair value measurements, investment d conduct review committee. Life. These transactions are at market terms and from those reported at those reported from selling commissions), selling income commissions), taxes and employee to 2036. 2036. to d conditions and are reviewed by the appropriate arious transactions with related companies which which companies related with transactions arious vices, (ii) distributing insurance products and (iii) ms appropriate and that are done at market terms of estimation uncertainty and areas where significant FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

POWER CORPORATION OF CANADA OF CORPORATION POWER ansactions with related parti dependent of the Corporation’s e estimates and assumptions tha Party and Conduct Review Commit ment benefits for employees of t management and administrativ ial statements, management of t ble assets (including deferred those transactions that it dee it that transactions those

. These losses expire from 2026 expire from . These losses lated disclosures. Key sources d conduct review committee.d conduct review POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER (NON-CONSOLIDATED BASIS) (NON-CONSOLIDATED 9 2 st quarter of 2016. A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P _ 1 impairment, goodwill and intangi Consolidated Financial Statements. There were no changes in the in changes future no were benefits. There These are Statements. described Financial in the Consolidated Corporation’s 2015 judgments in the fir entities to be consolidated, insurance and investment contract contract investment and insurance consolidated, be to entities subsidiaries are required to mak and re net earnings liabilities, judgments are made by the management of the Corporation and the CHANGES IN ACCOUNTING POLICIES POLICIES CHANGES IN ACCOUNTING policies accounting Corporation’s the to no changes were There In the preparation of the financ the of ESTIMATES AND JUDGMENTS ACCOUNTING SUMMARY OF CRITICAL preparation the In companies. Such transactions are at market terms and conditions and terms market at are shareholder, and to approve only v into and conditions. enters Life Great-West transactions business, of course normal the In Such include providing group insurance companies. benefits to other companies appropriate related party an w The Corporation had, at March 31, 2016, non-capital losses of $ of losses  non-capital 2016, 31, March at TAXES INCOME had, Corporation The PARTIES RELATED WITH TRANSACTIONS Power Corporation has a Related independent of management and in Committee is to review proposed tr Lifeco provides reinsurance, asse income (including capital gains) capital income (including post-employ other and pension to and its subsidiaries. These transactions are at market terms an related party and conduct review committee. operations and include (i) providing certain administrative ser administrative certain providing (i) include and operations London and Life Great-West to mortgages residential of sale the an party related by the appropriate reviewed are and conditions IGM enters into transactions with subsidiaries of Lifeco. These 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A29 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A30 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ for insurance contract measurement is issued and effective. effective. and issued is measurement contract insurance for su isrne otat, h e the contracts, insurance issue predominant to is model business Contracts n eebr 05 te AB publis IASB the 2015, December In insurance contract liabilities under current accounting and act and accounting current under liabilities contract insurance Lifeco has disclosed that it is actively monitoring development the CanadianAssetLiability Meth subsidiaries areevaluatingthe IFRS 9 until the earliestof the mandatory effectivedate ofIF h IS ise IR 9, IFRS issued IASB The IFRS 9 FINANCIALINSTRUMENTS– Lifeco’ from significantly differs standard proposed The draft. continues IASB The contracts. insurance for standard 4, accounting IFRS revised a issued IASB the 2013, June In INSURANCECONTRACTS IFRS 4– subsidia its and Corporation The FUTURE ACCOUNTING CHANGES  revenue as the goods or services services or goods the as revenue use in accounting15, for IFRS issued revenueIASB The arising from contractsIFRS 15 REVENUE– FROMCONTRACTS CUSTOMERS WITH with custo    statement financial consolidated Accounting Standards Board (IASB) and analyze the effect that c the adoptionofthisstandard. three separate phases: three separate Measurement The standard will be effective be will standard The insurance contracts,leases osdrto. h rvne recog revenue The consideration. E n g

0 1 guidance that more closely align assets withanassets expectedlossmodel. Hedge accounting: this phase rep phase this accounting: Hedge pha this methodology: Impairment model business entity’s the of contractual cashflowcharacteri basis the on value fair or cost measurement: and Classification _ A P C C 30 _ 2 0 to alleviate the temporary consequences of the different effec different the of consequences temporary the alleviate to POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 1 te urn sadr fr accoun for standard current the , - 0 5 _ v 1 . i n d d

A 3 0 Financial Instruments, Revenue fromContractswithCustomers and financial instruments. January 1, 2018. The Corporation The 2018. 1, January impact oftheadoptionthis

s whentheybecomeeffective. ries continuously monitor the p the monitor continuously ries od (CALM) and is expected top ly issue insurance contracts ar fcie ae f aur 1 201 1, January of date ffective iin eurmns n FS 15 IFRS in requirements nition stics of the financial assets. s theaccounting with anentity laces the current rule-based he rule-based current the laces r taserd o utmr i customers to transferred are e a epsr dat ih pro with draft exposure an hed hs hs rqie ta financ that requires phase this se replaces the current incurre current the replaces se OE OPRTO FCND POWER CORPORATION OFCANADA ting for financial instruments hc rpae IS 39, IAS replaces which Insurance Contracts standard. standard. RS 4 or January 1, 2021. For companies that do not do that companies For 2021. 1, January or 4 RS s current accounting and actuarial practices under under practices actuarial and accounting current s s in this area and that it will continue to measure to continue will it that and area this in s uarial policies, including CALM, until a new IFRS and its subsidiaries are evaluating the impact of e allowed the option to defer the effective date of of date effective the defer to option the allowed e roduce morevolatilef roduce mers. The model requires an entity to recognize to entity an requires model The mers. otential changes proposed by the International , which provides a single model for entities to to entities for model single a provides which , ’s riskmanageme to deliberate the proposals in this exposure 8should remain. The Corporation and its ags n h sadrs a hv o their on have may standards the in hanges dge accounting requirements in IAS 39 with 39 IAS in requirements accounting dge d o n o t a p p l y t o t h er e v e n u e a r i s i n g f r o m for managing the financial assets and the ial assets be classified at either amortized amortized either at classified be assets ial xoue rf pooig hne t the to changes proposing draft exposure n an amount that reflects the expected expected the reflects that amount an n d loss model for impairment of financial of impairment for model loss d posed amendments to IFRS 4, IFRS to amendments posed tive dates with IFRS 9. Companies whose Financial Instruments: Recognitionand . The standard was completed in in completed was standard The . nt activities. inancial results. inancial Insurance Insurance 116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 31 A l statement preparation nt is responsible for establishing and nditions. Therefore, even those systems designed to provide reasonable assurance are reasonably likely to materially affect, the . All internal control systems have inherent corresponding lease liability representing its its representing liability lease corresponding reparation of financial statements for external external for statements financial of reparation e with respect financia to l over financial reporting during the three-month the three-month during reporting financial l over and its subsidiaries are evaluating the impact of gnizes the related expense as depreciation on the the on depreciation as expense related the gnizes erm (less than 12 months) and low-value asset leases which which requires a lessee to recognize a right-of-use asset FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER Leases, Leases, POWER CORPORATION OF CANADA OF CORPORATION POWER have materially affected, or ctive because of changes in co Corporation’s internal contro ontrol over financial reporting ovide only reasonable assuranc e underlying leased asset and a

ancial reporting and that the p the that and reporting ancial January 1, 2019. The Corporation POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 3 ese requirements. ese requirements. A

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C C P _ 1 limitations and may become ineffe pr to be effective can determined and presentation. There have been no changes in the purposes is in accordance withmaintaining effective IFRS. internal The c Corporation’s manageme INTERNAL CONTROL OVER FINANCIAL REPORTING OVER FINANCIAL INTERNAL CONTROL The Corporation’s internal control regarding over the reliability financial of reporting fin is  16 –IFRS LEASES In January 2016, the IASB issued IFRS 16, representing its right to use th use to right its representing right-of-use asset and interest on the lease liability. Short-t liability. obligation to lease make lease the payments on for all leases. A interest lessee and reco asset right-of-use Corporation’s internal control over financial reporting. period ended March 31, 2016 which the adoption of this standard. the adoption of this are exempt fromare exempt th The standard will be effective 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A31 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A32 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ [3] Other items (non-operating earnings): earnings): (non-operating Other items [3] [2] Operating earnings and operating earnings per share attribu share per earnings operating and earnings Operating [2] [1] Revenue in the second quarter of 2015 is lower due to adec to due islower 2015 of quarter second in the Revenue [1] toparticipating earnings(attributable Net Other items(non-operatingearnings) Operating earnings(attributable to Total revenue SUMMARY OFQUARTERLYRESULTS 

E n g shareholders) shareholders) participating per share–diluted per share–basic per share–basic per share–basic

Corporate operations Other subsidiaries Power Financial Otheritems non-IFRS financial measures.For a definition of these non-IFRS Financial Measures and Presentation” section in this MD&A. MD&A. this in section Presentation” and Measures Financial 0 1 _ Pargesa IGM A P C C 32 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 [1] - 1 1

- 0 5 _ [2] [2] v 1

. i n d d

A 3 2 [2]

[2, 3]

13,280 (0.31 (143 (143 (143 (143 2016 0.10 0.10 0.41 2016 191 48 Q1 Q1 OE OPRTO FCND POWER CORPORATION OFCANADA Ϋ Ϋ Ϋ ) ) )

) )

9,379 (0.02 0.66 0.67 0.69 309 317 rease in the value of Lifeco’s bond portfolio resulting from in from resulting portfolio bond Lifeco’s of value the rease in (13 (10 15 Q4 Q4 (8 (8 table to participating shareholders, and other items and other other and items other and shareholders, participating to table Ϋ 5

) ) ) ) )

f i n a n c i a l m e a s u r e s , p l e a s e r e f e r t ot h e “ B a s i s o f P r e s e n t a t i o n 9,839 1.09 1.09 0.05 1.04 508 484 24 Q3 24 20 Q3 Ϋ 4 4 Ϋ

5,415 1.32 1.33 0.42 0.91 615 192 423 192 183 (28 Q2 37 37 Q2 Ϋ

)

13,632 0.76 0.77 0.01 0.76 2015 2015 354 349 Q1 Q1 5 5 Ϋ Ϋ 5 5 Ϋ

11,600 0.80 0.80 0.06 0.74 369 340 (13 (24 29 Q4 29 42 11 Q4 Ϋ

) )

9,338 0.76 0.76 0.76 350 350 Q3 Q3 Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ creasing interest rates. rates. interest creasing

10,934 items per share are share per items (0.02 0.68 0.68 0.70 314 324 (10 (10 (25 Q2 15 20 Q2 (5 Ϋ ) ) ) ) )

– Non-IFRS

10,757 2014 0.52 0.53 0.04 0.49 242 224 2014 18 Q1 18 18 18 Q1 Ϋ Ϋ Ϋ

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6   ǡ   116-05-12 2:02 PM ͻ͹Ͳ ͸ͺ͵ ͷʹͲ ʹͲͳͷ ͷǡʹ͵͹ ͺǡ͸ͻͶ ͻǡ͵ʹʹ ͹ǡͷͷͶ ͳǡͻͺͳ ͸ǡ͵Ͳͳ ͻǡ͸͸ͻ ͷǡͲͺͷ ͷǡͳ͵ͳ ͵ǡͲͶ͹ ͳǡ͸ʹͻ ͳǡͺͷͳ ʹǡʹͷ͵ ͹ǡͲͻʹ ͺǡͲ͵ͷ ʹǡ͸ͺͻ ͺǡ͸͵Ͳ ͳǡͻ͸͹ 33 ͳͲǡͷʹͶ ʹͻǡͶͳ͵ ͵ͷǡͷͲ͹ ʹͳǡͶ͹ͻ ͳͷǡͷͳʹ ͳͶǡͲʹͺ ͳ͸ͺǡʹ͵͸ Ͷʹʹǡͺͷͻ ͳͳͷǡͷ͹Ͳ ͳͷͺǡͶͻʹ ͳͻͺǡͳͻͶ ͵ͺ͹ǡ͵ͷʹ ͳͻͺǡͳͻͶ Ͷʹʹǡͺͷͻ A ‡ ‡„‡”͵ͳ ,     31  970 683 675 2016 8,321 5,049 9,206 4,761 7,610 1,865 6,162 9,654 1,343 5,144 2,995 1,624 2,116 7,155 7,956 2,079 8,930 1,864 10,361 28,979 34,266 20,909 12,954 13,357 March 166,274 412,719 114,719 155,352 193,001 412,719 193,001 378,453 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER †’‘Ž‹ ›Š‘Ž†‡”•ȏ‘–‡͸Ȑ Ȑ ‘–‡ͷȐ  CANADA  OF  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  y 3 3 A

equit  d d n i . 1 and v   _ 5 0 -   CORPORATION 1 y  1  - 6 1 0 2   liabilities equit assets liabilities _     C C P ‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”• ˜‡•–‡–’”‘’‡”–‹‡• ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡• ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡• ‘”–‰ƒ‰‡Ž‘ƒ• Šƒ”‡• ‘†• _ ssets 1  ‡–ƒ‹‡†‡ƒ”‹‰• –ƒ–‡† ƒ’‹–ƒŽȏ‘–‡ͺȐ ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• Total   Liabilities •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ȏ‘–‡͹Ȑ Equity —†•Š‡Ž†„› ‡†‹‰‹•—”‡”• POWER    ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ A ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ˜‡•–‡–•ȏ‘–‡ͶȐ –Š‡”ƒ••‡–• ‡•‡”˜‡• ‘–ƒŽ•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–› ‡ˆ‡””‡†–ƒšƒ••‡–• –ƒ‰‹„Ž‡ƒ••‡–• ‘‘†™‹ŽŽ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•ȏ‘–‡͸ Total ‡‹•—”ƒ ‡ƒ••‡–•ȏ‘–‡͹Ȑ ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ȏ ™‡”Ǧ‘ —’‹‡†’”‘’‡”–‹‡•ƒ† ƒ’‹–ƒŽƒ••‡–• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• Total ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ȏ‘–‡͹Ȑ „Ž‹‰ƒ–‹‘•–‘•‡ —”‹–‹œƒ–‹‘‡–‹–‹‡• ‡„‡–—”‡•ƒ†‘–Š‡”†‡„–‹•–”—‡–• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ‡ˆ‡””‡†–ƒšŽ‹ƒ„‹Ž‹–‹‡• •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ— Total 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A33 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A34 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ ‘ƒ‡‘‹›‘†”„ˆ– ‘–ƒŽ‡–’‘Ž‹ ›Š‘Ž†‡”„‡‡ˆ‹–• ”‡‹—‹ ‘‡ǡ‡– ‘–ƒŽ‡š’‡•‡• ‹ƒ ‹‰ Šƒ”‰‡• ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”• ‘–ƒŽ”‡˜‡—‡• –Š‡””‡˜‡—‡• ƒ•„ˆ”‘‡–š• ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡•    Earnings     A  Net  ‘‡–ƒš‡•ȏ‘–‡ͳ͵Ȑ Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• ’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‘‹••‹‘•  Šƒ‰‡‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ‘Ž‹ ›Š‘Ž†‡”†‹˜‹†‡†•ƒ†‡š’‡”‹‡ ‡”‡ˆ—†• ‘Ž‹ ›Š‘Ž†‡”„‡‡ˆ‹–• Expenses  ‡‡‹ ‘‡     ‡–‹˜‡•–‡–‹ ‘‡ ”‡‹—‹ ‘‡ Revenues ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•ǡ‡š ‡’–’‡”•Šƒ”‡ƒ‘—–•Ȑ ȋ—ƒ—†‹–‡†Ȍ        ˜‡•–‡–‹ ‘‡ǡ‡–  E n ttributable g —ƒ ‡–‡– ” •  •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –• ‡†‡†’”‡‹—• ”‘••’”‡‹—•™”‹––‡ ‘Ǧƒ– ’–Š”ŠŽ‡•  ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• ‡—ƒ‡‡–‡–‹  ‡‰—Žƒ”‡–‹˜‡•–‡–‹ ‘‡ ‡ƒ•ƒ–‹—ƒŽ‘’”‹‹ƒ‹‰•ƒ‡‘†”  ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• ƒ– ’–Š”ŠŽ‡•  ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• Š‡‹ƒ”˜Ž‡–”—Š’‘‹”Ž• Šƒ‰‡‹ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• Ȃƒ•‹  Ȃ‹Ž—–‡† 0  earnings 1 ‡†‡† ”‘•• _ A P C C 34  _  per  2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1  6   to participating - 1 1  - 0 5 _ v 1 . i n d d

A 3  share 4  ȏ‘–‡ͳͷȐ   ”‘ƒ‹•‘‹–•ȏ‘‡ͷ   ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ȏ‘–‡ͷȐ •‘‹–•‘‡–š• ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ†‹ ‘‡–ƒš‡•                           Š‡‘–•‡†‡†ƒ” Š͵ͳǡ Š”‡‡‘–Š•      12,581 13,280 7,015 6,170 9,678 6,642 1,882 7,926 1,988 3,139 1,625 4,036 2,411 (472) (911) (182) 0.10 0.10 2016 699 123 347 517 792 452 369 391 452 65 13 48  ͳʹǡͶ͵ͺ ͳ͵ǡ͸͵ʹ ͸ǡͻ͵ʹ ͷǡͳͷ͹ ͳǡͳͻͶ ͻǡͺͺͻ ͷǡ͸ͶͲ ͳǡͻͳͶ ͹ǡͺͲ͸ ͳǡ͸ͻ͹ Ͷǡ͵ͷͳ ͳǡ͸ͳʹ ͳǡʹͳͻ Ͷǡͷ͹Ͳ ʹǡͻͷͺ ȋͶͺ͵Ȍ ȋͺ͹ͶȌ ʹͲͳͷ ͲǤ͹͹ ͲǤ͹͸ ͳͳͷ ʹͳ͸ ʹ͹͹ ͹͵͹ ͻͶʹ ͵ͺͳ ͷ͹ͷ ͵ͷͶ ͻͶʹ ʹͷ ͳ͵   116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6  116-05-12 2:02 PM Ȃ ͳ ȋͶȌ ͳʹ ͳ͵ ͷ͵ ͷͳ ͷ͹ ʹͲ ȋ͵ͷȌ ȋͺ͵Ȍ ͳ͵ͷ ͻͻͳ ͺʹͻ ͺͻ͵ ͹ͻ͵ ͻͶʹ ͺ͸ʹ ͺͺʹ ʹ͹Ͳ ʹͲͳͷ ȋͳͻͺȌ ȋͳͳʹȌ ȋʹͶ͹Ȍ ȋͳ͵ͷȌ ͳǡ͹͵ͷ ͳǡ͹͵ͷ 35 A   – – 9 1 (1) 94 13 62 70 98 10 (14) (37) 452 121 108 2016 (245) (793) (450) (586) (324) (149) (586) (1,038) (1,079) (1,070)         Š”‡‡‘–Š• ‡†‡†ƒ” Š͵ͳǡ                   ‡–‹˜‡•–‡–•‹ˆ‘”‡‹‰ ‘†  Ž‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•  Ž‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ˆ ˆ‘”‡‹‰‘’‡”ƒ–‹‘•  earnings  earnings net   to  net  to    subsequently     subsequently ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ƒ••‡–•  reclassified POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  (loss) (loss)   (loss)  be reclassified   be  not  reclassified 5  3 income income   income A

 be

reclassified 

will may    d d n be i  not .  1 that that v    _ 5 will may to 0     - 1 1 - items items   6 that that 1 – –     0 ‘’‡”ƒ–‹‘• 2 comprehensive comprehensive   comprehensive _   ‘‡–ƒš‡š’‡•‡ȋ„‡‡ˆ‹–Ȍ  ‡ƒŽ‹œ‡†ȋ‰ƒ‹•ȌŽ‘••‡•–”ƒ•ˆ‡””‡†–‘‡–‡ƒ”‹‰•  ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹–‡ƒŽ‹œ‡†ȋ‰ƒ‹•ȌŽ‘••‡•–”ƒ•ˆ‡””‡†–‘‡–‡ƒ”‹‰•   ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘–”ƒ•Žƒ–‹‘ƒ”‹•‹‰†—”‹‰–Š‡ ’‡”‹  ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘‡—”‘†‡„–†‡•‹‰ƒ–‡†ƒ•Š‡†‰‡‘ˆ  ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹–   ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹– ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ   C earnings  C P Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••‡•Ȍ‘ˆŒ‘‹–Ž› ‘–”‘Ž  –—ƒ”‹ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ‘„‡‡ˆ‹–’Žƒ•ȏ‘–‡ͳʹȐ   ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹–  Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••‡•Ȍ‘ˆŒ‘‹–Ž› ‘–”‘Ž ‡–—”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘ ƒ•ŠˆŽ‘™Š‡†‰‡•‡–—”‡ƒŽ‹œ‡†ˆ‘”‡‹‰‡š Šƒ‰‡‰ƒ‹•ȋŽ‘••‡•Ȍ‘–”ƒ•Žƒ–‹‘‘  ‡–—”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘  ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”•   Total ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”•  Total Items ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• Items _ ttributable 1   Other Total  A           ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ  Net Other       0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A35 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A36 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ – ’‹š”‹‡Ȃͷ ͵ȌȂȋͻʹ ͶͲ ʹͲ ͵ʹǡͺ͹Ͳ ʹͲǡͳͷͷ ʹͻ ͳͲ ͳǡͶ͸Ͳ ͻͶʹ ȋ͵ͻȌ ͳͲ ͳǡ͵ͳ͸ ͷ͹ͷ  Ȃ ͳͶͶ Ȃ ͹ͻ͵ ͳǡ͹͵ͷ Ȃ ͻǡ͸ͳ͵ ȋ͵ͻȌ ͺͻ͵ ͵ͳͺ ͳͲ ͸͹Ͳ Ȃ Ͷ͹ͷ Ȃ Ͷ͹ͷ ͻ͹ʹ ‡•‡”˜‡• Ȃ Ͷ͹ͷ Ȃ Ͷ͹ͷ ͷͲ Ȃ  Ȃ Ȃ Ȃ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͵͸͹ Ȃ Ȃ ˆˆ‡ –•‘ˆ Šƒ‰‡•‹ Ȃ ͵͸͹ ʹͲ Ȃ ‡’—” Šƒ•‡‘ˆ•Šƒ”‡•‘ˆ–Š‡ ͳ͹ –‘ ‘’–‹‘•‡š‡” ‹•‡†  Ȃ ʹͲ Ȃ Šƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘ ͳͲ Ȃ ͻǡͶʹ͵ ‹˜‹†‡†•–‘‘Ǧ ‘–”‘ŽŽ‹‰ –ƒ–‡† ƒ’‹–ƒŽ Ȃ ȋʹͲȌ ͸ʹͲ Ȃ ͳͲ ‹˜‹†‡†•–‘•Šƒ”‡Š‘Ž†‡”•  Ȃ ͻ͹͵  Ȃ ‘–ƒŽ ‘’”‡Š‡•‹˜‡‹ ‘‡ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ ‡–‡ƒ”‹‰• ȋʹͲȌ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ȋͷͺ͸Ȍ ͳͲ  ȋͳǡͲ͵ͺȌ ȋͳͶͻȌ Ȃ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ ȋͷͶͲȌ ȋ—ƒ—†‹–‡†Ȍ  ‡•‡”˜‡• ƒ” Š͵ͳǡʹͲͳͷ Ȃ ȋͶͻͺȌ Š”‡‡‘–Š•‡†‡† Ȃ ȋͶͻͺȌ  ȋͶͻͺȌ Ȃ  ȋͶͻͺȌ  Ȃ  Ȃ Ȃ Ȃ Balance, ˆˆ‡ –•‘ˆ Šƒ‰‡•‹ ͸ͳ Ȃ –‘ ‘’–‹‘•‡š‡” ‹•‡†  Šƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘ Ȃ ‹˜‹†‡†•–‘‘Ǧ ‘–”‘ŽŽ‹‰ –ƒ–‡† ƒ’‹–ƒŽ Ȃ Ȃ ‹˜‹†‡†•–‘•Šƒ”‡Š‘Ž†‡”• Ȃ     ‘–ƒŽ ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ Balance,  ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ ȋ—ƒ—†‹–‡†Ȍ  ƒ” Š͵ͳǡʹͲͳ͸ Š”‡‡‘–Š•‡†‡†           ‡ƒ•  ͳȂȂȂ ͻ Ͷͷʹ ͵ͻͳ Ȃ Ȃ Ȃ ͸ͳ Ȃ Ȃ ‡–‡ƒ”‹‰• E n g ƒ‹ƒ–‡ȂȂȋͲ ͻͶʹ ͶͶ ʹͷ ȋ͵Ͳ͸Ȍ ȋͳȌ ȋ͵Ͳ͸Ȍ Ͷͻ ȋͳ͵ͶȌ Ȃ Ȃ ȋͳ͵Ȍ Ȃ Ͷͻ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋ͵ͲȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋͳ͵ͶȌ Ȃ Ȃ Ȃ ȋͳ͵Ȍ ȋʹͳʹȌ ȋͳȌ Ȃ Ȃ ȋ͵Ͳ͸Ȍ ƒ’‹–ƒŽƒ†‘–Š‡” ȋͳͶͷȌ ‘™‡”•Š‹’‘ˆ•—„•‹†‹ƒ”‹‡•ǡ ȋ͵Ͳ͸Ȍ Ȃ ‘”’‘”ƒ–‹‘ˆ‘” ƒ ‡ŽŽƒ–‹‘ ȋͳͶͶȌ Ȃ Ȃ ȋͳ͵Ȍ Ȃ ‹–‡”‡•–• Ȃ Ȃ Ȃ ƒ”–‹ ‹’ƒ–‹‰ Ȃ ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰ Ȃ Ȃ Ȃ Ȃ ȋ͸͹Ȍ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋͳͶͶȌ Ȃ Ȃ ȋͳ͵Ȍ Ȃ Ȃ ƒ’‹–ƒŽƒ†‘–Š‡” Ȃ ‘™‡”•Š‹’‘ˆ•—„•‹†‹ƒ”‹‡•ǡ ‹–‡”‡•–• ƒ”–‹ ‹’ƒ–‹‰ ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰ 0 1 _ A P C C   36 end beginning _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  of - 1 1  period - 0 5 _ v  of 1 . i n  year d  d

A 3  6 ’ƒ”–‹ ‹’ƒ–‹ ’ƒ”–‹ ‹’ƒ–‹ •Šƒ”‡• •Šƒ”‡• ‘Ǧ ‘Ǧ ͹ ͺ Ͳ͵ͳͳ͹ͳͳ͸ͳ͵͵ Ͳͻͻ͵Ͷǡʹ͸͸ ʹͲǡͻͲͻ ͳǡ͵Ͷ͵ ͳǡͳͺ͸ ͳͷ͹ ͳͲǡ͵͸ͳ ͸ͺ͵ ͵ͷǡͷͲ͹ ͻ͹Ͳ ʹͳǡͶ͹ͻ ͳǡͺͷͳ ͳǡ͸ͺͶ ͳ͸͹ ͳͲǡͷʹͶ ͸ͺ͵ ͻ͹Ͳ ‰ ‰   ƒ”–‹ ‹’ƒ–‹ ƒ”–‹ ‹’ƒ–‹ •Šƒ”‡• •Šƒ”‡• ‰ ‰ ‡–ƒ‹‡† ‡–ƒ‹‡† ‡ƒ”‹‰• ‡ƒ”‹‰• ‘’‡•ƒ–‹‘ ‘’‡•ƒ–‹‘ Šƒ”‡Ǧ„ƒ•‡ Šƒ”‡Ǧ„ƒ•‡ ͻ ͸ͳǡͲ ͵ͳǡͶͺͷ ͳͻǡͷͲͶ ͻ͸ͷ ͹ͻʹ ͵ † †   ‘’”‡Š‡•‹˜‡ ‘’”‡Š‡•‹˜‡ –Ͷ‘–ƒŽ ȏ‘–‡ͳͶȐ ‘–ƒŽ ȏ‘–‡ͳͶȐ ‹ ‘‡ ‹ ‘‡ –Š‡ –Š‡ ” ”   ‘–”‘ŽŽ‹ ‘–”‘ŽŽ‹ ‹–‡”‡•–• ‹–‡”‡•–• ‘Ǧ ‘Ǧ ‰ ‰   ‡“—‹– ‡“—‹– ‘–ƒŽ ‘–ƒŽ › › 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM  Ȃ ͻ ͶͲ ͻͻ ͵͵ ͳͳ ͷͺ ȋͳ͵Ȍ ȋ͸ʹȌ ȋͺͺȌ ȋͳͳȌ ȋ͸͵Ȍ ȋͻʹȌ ȋͺ͵Ȍ ͳͳͲ ͳʹͷ ͷͺͳ ͺʹ͹ ʹ͹ʹ ͸Ͷͻ ʹͲͳͷ ȋͳͷʹȌ ȋʹͻͻȌ ȋͳ͵ͶȌ ȋͶͶ͸Ȍ ȋ͸ͳ͸Ȍ ȋͶͲͻȌ ȋͶ͸ͳȌ ȋʹʹͻȌ ͷǡʹͷͺ ͳǡʹͳͻ ͶǡͶ͵ͳ ʹǡͺͷͳ ͳǡͶͳͷ ͳǡʹͲͻ 37 ȋʹǡͻͷͺȌ ͳͲǡͳͷͳ ȋͳͲǡͳͲͶȌ A                                            – – 3 (9) (5) 33 96 65 19 (13) (18) 517 662 260 2016 (148) (141) (324) (304) (125) (122) (144) (461) (936) (616) (131) (184) (839) 4,761 7,783 5,085 3,208 1,498 1,537 1,279 (8,439) (1,281) (2,411) Š”‡‡‘–Š• ‡†‡†ƒ” Š͵ͳǡ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER • †    includes period   of  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER end  activities  7 3 A



  d d n i . 1 v _ equivalents, operating   5 0 - activities  1 activities 1 activities  -  cash 6  from  1 0 2 _ and  C cash  C P ›•—„•‹†‹ƒ”‹‡•–‘‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• Šƒ‰‡‹ˆ—†•Š‡Ž†„› ‡†‹‰‹•—”‡”• Šƒ‰‡‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡• ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡• Šƒ‰‡‹ˆ—†•Š‡Ž†—†‡””‡‹•—”ƒ ‡ ‘–”ƒ –• Šƒ‰‡‹”‡‹•—”ƒ ‡ƒ••‡–• Šƒ‰‡‹ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• –Š‡” –‡”‡•–ƒ††‹˜‹†‡†•”‡ ‡‹˜‡† –‡”‡•–’ƒ‹†     _ 1  ‘‡–ƒš’ƒ‹†ǡ‡–‘ˆ”‡ˆ—†•”‡ ‡‹˜‡† Cash   ˆˆ‡ –‘ˆ Šƒ‰‡•‹‡š Šƒ‰‡”ƒ–‡•‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ„‡‰‹‹‰‘ˆ›‡ƒ”  Net ••—‡‘ˆ ‘‘•Šƒ”‡•„›•—„•‹†‹ƒ”‹‡• Investment ‘†•ƒŽ‡•ƒ†ƒ–—”‹–‹‡• ‘”–‰ƒ‰‡Ž‘ƒ”‡’ƒ›‡–• Financing ‹˜‹†‡†•’ƒ‹† ••—‡‘ˆ•—„‘”†‹ƒ–‡˜‘–‹‰•Šƒ”‡•„›–Š‡‘”’‘”ƒ–‹‘ȏ‘–‡ͺȐ       ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ Operating ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡•     †Œ—•–‹‰‹–‡• ‡’—” Šƒ•‡‘ˆ ‘‘•Šƒ”‡•„›•—„•‹†‹ƒ”‹‡• ƒŽ‡‘ˆ•Šƒ”‡• –Š‡” Šƒ‰‡•‹‘–Š‡”†‡„–‹•–”—‡–•  “—‹•‹–‹‘‘ˆ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ȏ‘–‡͵Ȑ Šƒ‰‡‹‘„Ž‹‰ƒ–‹‘•–‘•‡ —”‹–‹œƒ–‹‘‡–‹–‹‡• ˜‡•–‡–‹„‘†• ˜‡•–‡–‹‘”–‰ƒ‰‡Ž‘ƒ• —•‹‡••ƒ “—‹•‹–‹‘•ǡ‡–‘ˆ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ƒ “—‹”‡ Šƒ‰‡‹Ž‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”• ˜‡•–‡–‹•Šƒ”‡• ˜‡•–‡–‹‹˜‡•–‡–’”‘’‡”–‹‡•ƒ†‘–Š‡” 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A37 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A38 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _  Ͷͷ ”‡‡™ƒ„Ž •‡”˜‹ ‡•ǡ ˆ‹ƒ ‹ƒŽ  –Š‡ ‹ ‘’ƒ‹‡• ‹ ‹†‹”‡ –Ž›ǡ ‘” Ͷʹ ‘™‡”‘”’‘”ƒ–‹‘‹•ƒ†‹˜‡”•‹ˆ‹‡†‹–‡”ƒ–‹‘ƒŽƒƒ‰‡‡–ƒ† Ͷ͵ ‹ ƒ††”‡•• ”‡‰‹•–‡”‡† ƒƒ†ƒǡ ʹʹ ͵Ǥ ™Š‘•‡ Ͷʹ ƒƒ†ƒ ‹ †‘‹ ‹Ž‡† ƒ† ‹ ‘”’‘”ƒ–‡† Ͷͳ  ‘™‡”‘”’‘”ƒ–‹‘‘ˆƒƒ†ƒȋ‘™‡”‘”’‘”ƒ–‹‘‘”–Š‡‘”’‘”ƒ–‹ NOTE ͶͶ –ƒ–‡†ƒ’‹–ƒŽ   ‘–‡ͺ •—”ƒ ‡ƒ† ˜‡•–‡–‘–”ƒ –‹ƒ„‹Ž‹–‹‡• ƒ†••‘ ‹ƒ–‡• ‘–‡͹ ‡‰”‡‰ƒ–‡† —†• ‘–‡͸    ˜‡•–‡–•‹ ‘‹–Ž  ‘–‡ͷ ˜‡•–‡–•  ‘—–‹‰‘Ž‹ ‹‡• ‘–‡Ͷ  “—‹•‹–‹‘• ‘–‡͵ ƒ•‹•‘ˆ”‡•‡–ƒ–  ‘–‡ʹ ‘”’‘”ƒ–‡ ˆ‘”ƒ–‹‘ ‘–‡ͳ ȋ            ‹–”ƒ ‘ –‘• ”— ȋ“ƒ‡ ‹–”ƒ ‘—‹ ƒ–‹ ‹ –‘”‹ƒ ȋ“—ƒ”‡ ••—”ƒ ‡‘’ƒ›ȋƒƒ†ƒ‹ˆ‡ȌǢŠ‡ ”‡ƒ–Ǧ‡•–‹ˆ‡••—”ƒ ‡  Ǥ ”‘—’ ‘—‹ ƒ–‹‘• ‹ –‘”‹ƒ ‹ƒ ‹ƒŽȌǢ ȋ‘™‡” ‘”’‘”ƒ–‹‘ ‹ƒ ‹ƒŽ ‘™‡” ȋ‘™‡”‡”‰›ȌǢ ‘”’‘”ƒ–‹‘ȋƒ ‡œ‹‡ȌǢƒ”‰‡•ƒ ‘Ž ȋ  –ƒ†ƒ”†• ” ‡’‘”–‹‰ ‹ ‹ƒ ‹ƒŽ • –‡”ƒ–‹‘ƒŽ Šȋ –‡‰”ƒ‡†ȌǢ   ‹ ˆ  Ǥȋ‹ˆ‡ ‘ȌǢ  ‹ƒ ‹ƒŽ  Ǥȋ ‘”  ‹ƒ ‹ƒŽȌǢ –‡‰ ‡  ” ‘‡•–‹ˆ‡Ƭ—‹–› •—”ƒ ‡‘’ƒ›ȋ ”‡ƒ–Ǧ‡•– ‹ƒ ‹ƒŽ‘” — ƒ ”‡’‘”–ǣ ’ –Š‹• –Š”‘—‰Š‘—– —•‡†  ƒ”‡ ƒ„„”‡˜‹ƒ–‹‘• ‹ ˆ‘ŽŽ‘™‹‰ Š‡  ‹ – ‡ † ȋ –ƒ–‡‡ ƒ›ͳ͵ǡʹͲͳ͸Ǥ ” ‹ƒ ‹ƒŽ ‹ ‘•‘Ž‹†ƒ–‡† • Š ‘†‡•‡† ‘”’‘”ƒ–‹‘ƒ•ƒ–ƒ†ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ –‡”‹ ‹ ˆ —ƒ—†‹–‡† ‡ ȌŠ‡ Ǣ  ‘  † ‘ •‡ –‘”•Ǥ  ‹ ˆ ‡   • — ” ƒ  ‡  ‘ E n g 0 1 _ A P C C  38 _ 1 2 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - CORPORATE 1 1 - 0 5 _ v 1 . i n d d

‹‘ƒ†—ƒ”›‘ˆ‹‰‹ˆ‹ ƒ–

A 3 ›‘–”‘ŽŽ‡†‘”’‘”ƒ–‹‘• 8  INFORMATION    ǡ  †‹‰ȋƒ”‰‡•ƒȌǢƒ”Œ‘‹–  ͵ͻ ͵ͺ   ‘‡ͳ”‹‰‡Š”ͷͺ ͷ͹ ͷͺ Ͷͻ Ͷ͹ ‡‰‡–‡† Ͷ͸  ƒ‹”ƒŽ—‡‘ˆ ‹ ‘–‡ͳ͹ ƒ”‹‰•‡”Šƒ”‡ ‘–‡ͳ͸ –Š‡”‘’”‡Š‡•‹˜‡  ‘‡ ‘–‡ͳͷ  ‘‡ƒš‡• ‘–‡ͳͶ ‡•‹‘Žƒ•ƒ†–Š‡”‘ ‘–‡ͳ͵ ‹•ƒƒ‰‡‡– ‘–‡ͳʹ ƒ’‹–ƒŽƒƒ‰‡‡– ‘–‡ͳͳ Šƒ”‡Ǧƒ•‡†‘’‡•ƒ–‹‘ ‘–‡ͳͲ ‘–‡ͻ    ǤȌ ”ƒ‡†‡”‹ ƒǡ  Ǥƒ†‡‹Ž‹‹ •‘ˆ‡”‹ ƒǡ  Ǥ ‡‡‰ǡ ‘ –‘• ‘Š” „—•‹‡•• ‘–Š‡” ƒ† ‘—‹ ƒ–‹‘• ‡‡”‰›ǡ ‡ ‘ǤǤȋƒ”Œ‘‹– ‘ȌǢ‘™‡”‡”‰›‘”’‘”ƒ–‹‘  ƒ † ‹ ƒ   • • ‡ –  ‹ ƒ „ ‹ Ž ‹ – ›  ‡ – Š ‘ † ȋ     Ȍ Ǣ  ” ‡ ƒ – Ǧ Š‘Ž†‹‰ ‘’ƒ›–Šƒ–Š‘Ž†•‹–‡”‡•–•ǡ†‹”‡ –Ž› ‘’ƒ›ȋ ”‡ƒ–Ǧ‡•–‹ˆ‡ȌǤ ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ—‹–›ȌǢ ”‡ƒ–Ǧ‡•–‹ˆ‡ ‘ ’ȋ‘† ‹‡Ǣ ƒ‹ ‹ƒ ‹ƒŽ ƒ ‡œ‹‡ ‹ˆ‡ȌǢ ȋ‘†‘ ’ƒ› — ‡–‡–ǡ ȋ—Ǣ “—ƒ”‡ ȋ—–ƒȌǢ  ˜‡•–‡–•ǡ —–ƒ ™‡”‡ƒ’’”‘˜‡†„›‹–•‘ƒ”†‘ˆ‹”‡ –‘”•‘ ‘Ȍ‹•ƒ’—„Ž‹ Ž›Ž‹•–‡† ‘’ƒ›ȋǣȌ Ǣ ‡–” ‘’ Ǥ ˜•‘• ”‘—’ȌǢ ȋ ˜‡•–‘”•  Ǥ ”‘—’ ˜‡•–‘”• ȌǢ ͹ͳ ‹–”ƒ “ƒ‡”ƒǡ —±„‡ ǡ ‘–”±ƒŽǡ “—ƒ”‡ǡ ‹ –‘”‹ƒ ͹ͷͳ •  ‘’ ”  Ǣ Š†‹ˆ‡ ƒƒ†ƒ Š‡  ȌǢ ‘” ”‘—’ ‘• ˆ”ƒ‹ ͸͵  ˆ‘”ƒ–‹‘ • ˆ‹Ž ––•‘‘™‡” ‘ˆ •–ƒ–‡‡–•Ȍ ȋˆ‹ƒ ‹ƒŽ –• ƒ ƒ–—‡–ͷͻ ƒ ‹ƒŽ •–”—‡–• –’‘‡‡‹• ͷ͸ •–Ǧ’Ž‘›‡–‡‡ˆ‹–• ȋ—ƒ—†‹–‡†Ȍ   116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM  39 A POLICIES  ACCOUNTING  ‹˜‡Ž› ȋʹͲͳͷ Ȃ ͸͹ǤͶΨ ƒ† ͶǤͲΨǡ •Šƒ”‡•ǡ”‡•’‡ –‹˜‡Ž›ȋʹͲͳͷȂ͸ͲǤͶΨ ‡ ”‡ƒ–Ǧ‡•– ‹ˆ‡ǡ ”‡ƒ–Ǧ‡•– ‹ˆ‡ Ƭ ‹ƒŽǡƒ’—„Ž‹  ‘’ƒ›‹™Š‹ Š‘™‡” ‹‡•ƒ”‡ ˜‡•–‘”• ”‘—’ƒ†ƒ ‡œ‹‡Ǥ ‘—Ž† „‡ ”‡ƒ† ‹ ‘Œ— –‹‘ ™‹–Š –Š‡  ‘’ƒ›‹™Š‹ Š‘™‡” ‹ƒ ‹ƒŽƒ† ‹‘• ”‘—’Ǣ ‘”ƒ–‹‘Š‘Ž†•ƒ ‘–”‘ŽŽ‹‰‹–‡”‡•–‘ˆ͸ͷǤ͸Ψ „ƒŽƒ ‡ •Š‡‡–•ǡ ‘•‘Ž‹†ƒ–‡† •–ƒ–‡‡–• ‘ˆ ‹ Ž› †‹• Ž‘•‡† —ƒ—†‹–‡† ‹–‡”‹ ‘†‡•‡† ȋ ͵ͶȌ—•‹‰–Š‡•ƒ‡ƒ ‘—–‹‰’‘Ž‹ ‹‡•ǡ Ͳͳ͸ Šƒ˜‡ „‡‡ ’”‡’ƒ”‡† ‹ ƒ ‘”†ƒ ‡ ™‹–Š ‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ Šƒ‰‡•‹‡“—‹–›ƒ† Ž±‡•ƒ† –‡‰”ƒ‡†™Š‹ Šƒ”‡ ‘–”‘ŽŽ‡†„› ‡•Ǥ —„•‹†‹ƒ”‹‡• ƒ”‡ ‡–‹–‹‡• –Š‡ ‘”’‘”ƒ–‹‘ ‹‘ ƒ† ƒŽŽ ‹–• •—„•‹†‹ƒ”‹‡• ‘ ƒ ‘•‘Ž‹†ƒ–‡† Ž•–ƒ–‡‡–•ƒ”‡†‡”‹˜‡†ˆ”‘–Š‡‘–‡•–‘–Š‡ SIGNIFICANT  —Ž–•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡ‹ˆ‡ ‘ƒ†  ‹ƒ ‹ƒŽ ‹–•—•‡‘ˆ’‘™‡”‘˜‡”–Š‡‡–‹–›Ǥ—„•‹†‹ƒ”‹‡•‘ˆ Š ‘–”‘Ž ‡ƒ•‡•ǤŠ‡‘”’‘”ƒ–‹‘™‹ŽŽ”‡ƒ••‡•• –‘ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ „‡‹‰–Š‡†ƒ–‡‘™Š‹ Š–Š‡‘”’‘”ƒ–‹‘‘„–ƒ‹• ”–ˆ‘Ž‹‘‹˜‡•–‡–•ƒ”‡ǣ ‹†‹ ƒ–‡–Š‡”‡ƒ”‡ Šƒ‰‡•–‘‘‡‘”‘”‡‘ˆ–Š‡ †  ‹ƒ ‹ƒŽǡƒŽŽƒ•ƒ–ƒ†ˆ‘”–Š‡–Š”‡‡‘–Š• ƒŽǤ ‡š’‘•‡†ǡ‘”Šƒ•”‹‰Š–•ǡ–‘˜ƒ”‹ƒ„Ž‡”‡–—”•ˆ”‘‹–• ‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ–Š‡‘”’‘”ƒ–‹‘ˆ‘” OF  Reporting  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ƒ†͵ǤͺΨ‘ˆ–Š‡ ‘‘ Financial SUMMARY   AND  Interim –ƒ–‡‡–•ƒ†‘–‡•–Š‡”‡ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  PRESENTATION  9 3 A OF



d d n i . 1 v _ 5 0 BASIS - 1 PRESENTATION  1  - ƒ†͵ǤͺΨǡ”‡•’‡ –‹˜‡Ž›ȌǤ ǯ•ƒŒ‘”‘’‡”ƒ–‹‰•—„•‹†‹ƒ”› ‘’ƒ ‹ƒ ‹ƒŽƒ† ”‡ƒ–Ǧ‡•–‹ˆ‡Š‘Ž†͸ͳǤʹΨ  ‹ƒ ‹ƒŽ Š‘Ž† ͸͹ǤͶΨ ƒ† ͶǤͲΨ”‡•’‡ –‹˜‡Ž›ȌǤ ‘ˆ ‹ˆ‡ ‘ǯ• –Š‡ ƒŒ‘” ‘‘ ‘’‡”ƒ–‹‰ •Šƒ”‡•ǡ •—„•‹†‹ƒ”› ”‡•’‡ – ‘’ƒ‹‡• ƒ” ‘™‡” ‹ƒ ‹ƒŽŠ‘Ž†•ƒ ‘–”‘ŽŽ‹‰‹–‡”‡•–‹‹ˆ‡ ‘ǡƒ’—„Ž‹ —‹–›ǡ‘†‘‹ˆ‡ǡƒƒ†ƒ‹ˆ‡ǡ ”‹•Š‹ˆ‡ƒ†—–ƒǤ ‘™‡” ‹ƒ ‹ƒŽ ƒŽ•‘ Š‘Ž†• ƒ ‘–”‘ŽŽ‹‰ ‹–‡”‡•– ‹  ‹ƒ 6 2 1  OF 0  2

_ x x C ‘™‡” ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ǡƒ’—„Ž‹  ‘’ƒ›‹™Š‹ Š–Š‡‘”’ –Š‡”•—„•‹†‹ƒ”‹‡•ǣ‘™‡”‡”‰›ƒ†“—ƒ”‡‹ –‘”‹ƒ‘—‹ ƒ– ‘–”‘ŽŽ‡†’‘”–ˆ‘Ž‹‘‹˜‡•–‡–•ǣŽ˜‡•–ǡ‡•±Ž‹ ‡•†‡•͹ƒŽ ȋʹͲͳͷȂ͸ͷǤ͸ΨȌǤ ‡“—‹–›‹˜‡•–‡–ˆ—†•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ C

P _ 1 ™Š‹ Šƒ”‡ ‘•‹•–‡–™‹–Š ƒ••‡–‘—–‹‘–‡ʹ–‘–Š‡ ‘• –Š‡ ›‡ƒ” ‡†‡† ‡ ‡„‡”͵ͳǡʹͲͳͷǤ‘”’‘”ƒ–‹‘ǯ• ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ• Š‡•‡ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• •Š „ƒ•‹• ƒˆ–‡” ‡Ž‹‹ƒ–‹‘ ‘ˆ ‹–‡” ‘’ƒ› –”ƒ•ƒ –‹‘• ƒ† ‘–”‘Ž•ǡ™Š‡–Š‡‘”’‘”ƒ–‹‘Šƒ•’‘™‡”‘˜‡”–Š‡‡–‹–›ǡ‹–‹• „ƒŽƒ ‹˜‘Ž˜‡‡–ƒ†Šƒ•–Š‡ƒ„‹Ž‹–›–‘ƒˆˆ‡ ––Š‘•‡”‡–—”•–Š”‘—‰Š –Š‡‘”’‘”ƒ–‹‘ƒ”‡ ‘•‘Ž‹†ƒ–‡†ˆ”‘–Š‡†ƒ–‡‘ˆƒ “—‹•‹–‹‘ǡ ‘–”‘Žǡƒ† ‘–‹—‡–‘„‡ ‘•‘Ž‹†ƒ–‡†—–‹Ž–Š‡†ƒ–‡–Šƒ–•— ™Š‡–Š‡”‘”‘–‹– ‘–”‘Ž•ƒ‡–‹–›‹ˆˆƒ –•ƒ† ‹” —•–ƒ ‡• ‡Ž‡‡–•‘ˆ ‘–”‘ŽŽ‹•–‡†ƒ„‘˜‡Ǥ Š‡‘’‡”ƒ–‹‰•—„•‹†‹ƒ”‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ† ‘–”‘ŽŽ‡†’‘    BASIS Š‡ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ‹ Ž—†‡ –Š‡ ƒ ‘—–• ‘ˆ ‘™‡” ‘”’‘”ƒ–  NOTE Š‡ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ‘ˆ ‘™‡” ‘”’‘”ƒ–‹‘ ƒ• ƒ– ƒ” Š –‡”ƒ–‹‘ƒŽ ‘—–‹‰–ƒ†ƒ”†͵ͶȂ ͵ͳǡ ʹ     ‘ƒ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•Ǣ–Š‡ƒ‘—–••Š‘™‹–Š‡ ‘•‘Ž‹†ƒ–‡† ‡ƒ”‹‰•ǡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ ‘’”‡Š‡•‹˜‡‹ ‘‡ǡ ‘• ‘•‘Ž‹†ƒ–‡† •–ƒ–‡‡–• ‘ˆ ƒ•Š ˆŽ‘™• ƒ”‡ †‡”‹˜‡† ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡ‹ˆ‡ ‘ƒ ˆ”‘ –Š‡ ’—„Ž ‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǤŠ‡‘–‡•–‘‘™‡”‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹ƒ ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡ‹ˆ‡ ‘ƒ†  ‹ƒ ‹ Š‡•‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ‘™‡”‘”’‘”ƒ–‹‘‹ Ž—†‡–Š‡”‡• 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A39 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A40 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ –Š”‡‡•‡’ƒ”ƒ–‡’Šƒ•‡•ǣ Measurement ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•™Š‡–Š‡›„‡ ‘‡‡ˆˆ‡ –‹˜‡Ǥ  ‘ —  – ‹  ‰  – ƒ  † ƒ ” † •  ‘ ƒ ” † ȋ    Ȍ ƒ  † ƒ  ƒ Ž › œ ‡ – Š ‡ ‡ ˆ ˆ ‡ – – Š ƒ –  ‘™‡” ‹ƒ ‹ƒŽƒ ‘—–•ˆ‘”‹–•‹˜‡•–‡–‹ƒ”Œ‘‹– ‘—•‹‰ ‘”’‘ –Š‡ ™Š‹ Š ‡–‹–›ǯ•‘’‡”ƒ–‹‰ƒ†ˆ‹ƒ ‹ƒŽ’‘Ž‹ ‹‡•ǡ™‹–Š‘—–Šƒ˜‹‰ ‘–” ‹ ‡–‹–‹‡• ƒ”‡ ••‘ ‹ƒ–‡• ƒ –‹˜‹–‹‡•Ǥ ”‡Ž‡˜ƒ–    ͻǡ  ‹••—‡†  Š‡ IFRS Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡• ‘–‹—‘—•Ž›‘‹–‘”–Š‡’  FUTURE •–ƒ–‡‡–•ƒ†‘–‡•–Š‡”‡–‘ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲ •—„•‹†‹ƒ”‹‡•ƒ”‡ˆ—”–Š‡”†‡• ”‹„‡†‹–Š‡”‡Ž‡˜ƒ–ƒ ‘—–‹‰’ • ‹ ‰  ‹ ˆƒ••‡–•ǡŽ‹ƒ„‹Ž‹–‹‡•ǡ‡–‡ƒ”‹‰•ƒ†”‡Žƒ–‡††‹• Ž‘•—”‡•Ǥ‡› ƒ••— ‹ ƒ† ‡•–‹ƒ–‡• Œ—†‰‡–•ǡ ƒ‡ ƒ –‘  ”‡“—‹”‡† ƒ”‡ –•—„•‹†‹ƒ”‹‡• Œ — † ‰  –Š‡’”‡’ƒ”ƒ–‹‘‘ˆ–Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ǡƒƒ‰‡‡–‘ˆ– ‡  – • ŠUSE ƒ ˜ ‡ „ ‡ ‡   ƒ † ƒ”Œ‘‹– ‘ ‡ ‹ „ ‹–‡”‡•– › ͷͲΨȌ – Ȃ Š ‘•‹†‡”‡†–‘„‡ƒŒ‘‹–˜‡–—”‡Ǥƒ”Œ‘‹– ‘Š‘Ž†•ƒͷͷǤͷΨȋʹͲͳ ȋʹͲͳͷ ‡ ͷͲΨ  ƒ ƒ    Š‘Ž†•  ‹ƒ ‹ƒŽ ƒ‘™‡” ‰ ‡  ‡  – ‘ ˆ –‹ ‘‡ƒ† ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡ Š ‡  ƒ••‘ ‹ƒ–‡•ƒ”‡”‡ ‘‰‹œ‡†‹–Š‡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ‡ƒ” ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ƒ”‡ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–› —ƒ‹‘—• ™Š‹ Š ‹ ‡–‹–‹‡• ƒ”‡ ‘”’‘”ƒ–‹‘• ‘–”‘ŽŽ‡† ‘‹–Ž› NOTE    ‡‡„” Ͳͷ–‡  —Ž•‡ƒ‡’•”†ƒ– ‹Š ’”‘ ™‹–Š †”ƒˆ– ‡š’‘•—”‡ ƒ Contracts ’—„Ž‹•Š‡†  –Š‡ ʹͲͳͷǡ ‡ ‡„‡”  •—‹•”‡ ‘–ƒ–ǡ Š‡ˆ ‹‡ ƒ‡ ˆ ƒ—”ͳʹͲͳ ͳǡ ƒ—ƒ”› ‘ˆ †ƒ–‡ •—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ–Š‡ƒ†‘’–‹‘‘ˆ–Š‹• ‡ˆˆ‡ –‹˜‡ –Š‡ ‘–”ƒ –•ǡ ‹•—”ƒ ‡ ‹••—‡ ͻ—–‹Ž–Š‡‡ƒ”Ž‹‡•–‘ˆ–Š‡ƒ†ƒ–‘”›‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ „—•‹‡••‘†‡Ž‹•–‘’”‡†‘‹ƒ–Ž›‹••—‡‹•—”ƒ ‡ ‘–”ƒ –•ƒ” ƒ•‘Š” ‘’‡‡•˜‹ ƒ† Š ƒ‰•  ‡“—‹–› ‹ Šƒ‰‡• –Š‡ ƒ† ‹ ‘‡ ‘’”‡Š‡•‹˜‡ ‘–Š‡” ‡ƒ”‹‰•ǡ E n g

0 ‰—‹†ƒ ‡–Šƒ–‘”‡ Ž‘•‡Ž›ƒŽ‹‰ ‡†‰‡ƒ ‘—–‹‰ǣ–Š‹•’Šƒ•‡”‡’Žƒ ‡•–Š‡ —””‡–”—Ž‡Ǧ„ƒ•‡†Š‡ ƒ••‡–•™‹–Šƒ‡š’‡ –‡†Ž‘••‘†‡ŽǤ ‹ —””‡ —””‡– –Š‡ ”‡’Žƒ ‡• ’Šƒ•‡ –Š‹• ‡–Š‘†‘Ž‘‰›ǣ ’ƒ‹”‡– ƒ•ŠˆŽ‘™ Šƒ”ƒ –‡”‹•–‹ •‘ˆ–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•Ǥ ‘”ˆƒ‹”˜ƒŽ—‡‘–Š‡„ƒ•‹•‘ˆ–Š‡‡–‹–›ǯ•„—•‹‡••‘†‡Žˆ‘” Žƒ••‹ˆ‹ ƒ–‹‘ƒ†‡ƒ•—”‡‡–ǣ–Š‹•’Šƒ•‡”‡“—‹”‡•–Šƒ–ˆ‹ƒ 1  _ OF  A P 9 C   C – 2  40 SIGNIFICANT _    Financial 2 ACCOUNTING 0 –‘ƒŽŽ‡˜‹ƒ–‡–Š‡–‡’‘”ƒ”› ‘•‡“—‡ ‡•‘ˆ–Š‡†‹ˆˆ‡”‡–‡ˆˆ‡ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 BASIS 6 - 1 1 –‡ —”•ƒ†”ˆ” ‘‹‰ ‘ˆ‹Ž ‹•–”—‡–• ˆ‹ƒ ‹ƒŽ ˆ‘” ƒ ‘—–‹‰ ˆ‘” •–ƒ†ƒ”† —””‡– –Š‡ ǡ - 0 5 _ v  1 OF .  i n Instruments d d 

 PRESENTATION

JUDGMENTS, A 4  CHANGES 0 Financial   •–Š‡ƒ ‘—–‹‰™‹–Šƒ‡–‹–›  –•‘ˆ Šƒ‰‡•‹‡“—‹–›ǡ”‡•’‡ ESTIMATES  Instruments,  AND  SUMMARY  AND Š ”’ƒ‡  ͵ͻǡ  ”‡’Žƒ ‡• ™Š‹ Š   ASSUMPTIONS  OF •–ƒ†ƒ”†Ǥ  •‘—” ‡•‘ˆ‡•–‹ƒ–‹‘— ‡”–ƒ‹–›ƒ†ƒ”‡ƒ•™Š‡”‡ Ͷ‘” ƒ—ƒ”›ͳǡʹͲʹͳǤ ‘” ‘’ƒ‹‡•–Šƒ–†‘‘– SIGNIFICANT ‘Ž‘”Œ‘‹– ‘–”‘ŽǤ ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† –Š‡‡“—‹–›‡–Š‘†Ǥ ‡–Š‘†Ǥ†‡”–Š‡‡“—‹–›‡–Š‘†ǡ–Š‡•Šƒ”‡‘ˆ‡– ͷȂͷͷǤͷΨȌ‡“—‹–›‹–‡”‡•–‹ƒ”‰‡•ƒǤ ‘”†‹‰Ž›ǡ ‘Ž‹ ‹‡•ƒ•†‡• ”‹„‡†‹–Š‡‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹ƒŽ ‹‰•ǡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ ‘’”‡Š‡•‹˜‡ ‡ƒŽŽ‘™‡†–Š‡‘’–‹‘–‘†‡ˆ‡”–Š‡‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ –‹˜‡Ž›Ǥ ƒ‹ š”‹‡•‰‹‹ƒ– Ž‡ ‘‡–Š‡ ‘˜‡” ‹ˆŽ—‡ ‡ •‹‰‹ˆ‹ ƒ– ‡š‡” ‹•‡• ”ƒ–‹‘ ƒƒ‰‹‰–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•ƒ†–Š‡ ‘–”ƒ –—ƒŽ ͳͷǤ ‘–‡–‹ƒŽ Šƒ‰‡•’”‘’‘•‡†„›–Š‡ –‡”ƒ–‹‘ƒŽ ǯ•”‹•ƒƒ‰‡‡–ƒ –‹˜‹–‹‡•Ǥ ‘•‹”“‹‡ˆ” ‡‹‹”Ž––‘ ”‡Žƒ–‹‰ †‡ ‹•‹‘• ˆ‘” ”‡“—‹”‡† ‹• ‘•‡–  ‹ƒŽƒ••‡–•„‡ Žƒ••‹ˆ‹‡†ƒ–‡‹–Š‡”ƒ‘”–‹œ‡† ‘•–  ’‹–ƒƒˆ –‡ ‡‘–† —–‘ˆ ƒ‘—–• ”‡’‘”–‡† –Š‡ ƒˆˆ‡ – –Šƒ– ’–‹‘• ͺ•Š‘—Ž†”‡ƒ‹ǤŠ‡‘”’‘”ƒ–‹‘ƒ†‹–• ƒ‰•  Š•ƒ†”• ƒŠ˜‘–Š‡‹” ‘ Šƒ˜‡ ƒ› •–ƒ†ƒ”†• –Š‡ ‹ Šƒ‰‡• †‰‡ƒ ‘—–‹‰”‡“—‹”‡‡–•‹ ͵ͻ™‹–Š ‘ˆ–Š‡Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ† Š‡‘”’‘”ƒ–‹‘ƒ†ƒƒ‰‡‡–‘ˆ‹–• ƒ ‘Ž ”Ž‡ ”‘ƒ‹ Š– ‹• –Šƒ– ‘”’‘”ƒ–‹‘ ‘–”‘ŽŽ‡† Œ‘‹–Ž› ƒ ǡ Ž•†Ž ‘‹’‹‘ˆ‹ƒ ‹ƒŽ ‘ˆ ‹’ƒ‹”‡– ˆ‘” ‘†‡Ž Ž‘•• † ‘‡ƒ‡†‡–– Ͷǡ –‘ ƒ‡†‡–• ’‘•‡† –‹˜‡†ƒ–‡•™‹–Š ͻǤ‘’ƒ‹‡•™Š‘•‡ ‘”’‘”ƒ–‹‘ƒ†–Š‡ƒƒ‰‡‡–‘ˆ‹–• Financial  ACCOUNTING ‡ –ƒ† ƒ Ž–† ‹ ‘’Ž‡–‡† ™ƒ• •–ƒ†ƒ”† Š‡ Ǥ  Instruments:  POLICIES  Recognition  Insurance ȋ ‘–‹—‡†Ȍ  and    116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

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PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 -  6 116-05-12 2:02 PM 41 A ȋ ‘–‹—‡†Ȍ  POLICIES  ƒ•†‡’”‡ ‹ƒ–‹‘‘–Š‡ ACCOUNTING  ‡† ”‹•Š •—„•‹†‹ƒ”›ǡ ”‹•Š ‹ˆ‡ǡ ”‡ƒ Š‡†  ƒ ƒ‘—– –Šƒ– ”‡ˆŽ‡ –• –Š‡ ‡š’‡ –‡† —‹”‡†ƒŽŽ‘ˆ–Š‡‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•‹ †‘ ‘– ƒ’’Ž› –‘ –Š‡ ”‡˜‡—‡ ƒ”‹•‹‰ ˆ”‘ ‡š’‡ –‡† –‘ Šƒ˜‡ ƒ ƒ–‡”‹ƒŽ ‹’ƒ – ‘ –Š‡ ™Š‹ Š’”‘˜‹†‡•ƒ•‹‰Ž‡‘†‡Žˆ‘”‡–‹–‹‡•–‘ ‘”ƒŽ ”‡‰—Žƒ–‘”› ƒ’’”‘˜ƒŽ•ǡ ‹• ‡š’‡ –‡† –‘ „‡  ‘””‡•’‘†‹‰ Ž‡ƒ•‡ Ž‹ƒ„‹Ž‹–› ”‡’”‡•‡–‹‰ ‹–• „‡ ‘‡‘‡‘ˆ–Š‡Ž‡ƒ†‹‰’”‘˜‹†‡”•‹–Š‡ ”‹•Š ˜‹˜ƒ ‡ƒŽ–ŠȌǡƒ ”‹•ŠŠ‡ƒŽ–Š‹•—”ƒ ‡ ‘’ƒ›ǡ ‡”•ǤŠ‡‘†‡Ž”‡“—‹”‡•ƒ‡–‹–›–‘”‡ ‘‰‹œ‡ ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ •‹‹–‡†ȋ Ž‘ ‡ƒŽ–ŠȌ–‘ͳͲͲΨ‘™‡”•Š‹’Ǥ‹ˆ‡ ‘ ‰‹œ‡•–Š‡”‡Žƒ–‡†‡š’‡•‡ SIGNIFICANT  ‡”ȋŽ‡••–Šƒͳʹ‘–Š•Ȍƒ†Ž‘™Ǧ˜ƒŽ—‡ƒ••‡–Ž‡ƒ•‡• OF  Customers,  ™Š‹ Š ”‡“—‹”‡• ƒ Ž‡••‡‡ –‘ ”‡ ‘‰‹œ‡ ƒ ”‹‰Š–Ǧ‘ˆǦ—•‡ ƒ••‡– FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER   with  Leases, SUMMARY  Contracts Customers  AND   from with     POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Revenue Contracts  PRESENTATION  1 4 from A 

OF CORPORATION d    d n i . 1 v _ ACQUISITIONS 5 0 - BASIS Leases Revenue 1    1 -  ENERGY – – 3 6      1 2  0 2 16 15 _   C C P _ 1 —•‡‹ƒ ‘—–‹‰ˆ‘””‡˜‡—‡ƒ”‹•‹‰ˆ”‘ ‘–”ƒ –•™‹–Š —•–‘ ”‡˜‡—‡ ƒ• –Š‡ ‰‘‘†• ‘” ‘•‹†‡”ƒ–‹‘Ǥ Š‡ •‡”˜‹ ‡• ”‡˜‡—‡ ƒ”‡ ”‡ ‘‰‹–‹‘ –”ƒ•ˆ‡””‡† ”‡“—‹”‡‡–• ‹ –‘‹•—”ƒ ‡ ‘–”ƒ –•ǡŽ‡ƒ•‡•ƒ†ˆ‹ƒ ‹ƒŽ‹•–”—‡–•Ǥ  —•–‘‡”• ͳͷ ‹ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͺǤŠ‡‘”’‘”ƒ–‹‘ –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ ”‹‰Š–Ǧ‘ˆǦ—•‡ƒ••‡–ƒ†‹–‡”‡•–‘–Š‡Ž‡ƒ•‡Ž‹ƒ„‹Ž‹–›ǤŠ‘”–Ǧ– ƒ”‡‡š‡’–ˆ”‘–Š‡•‡”‡“—‹”‡‡–•Ǥ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͻǤŠ‡‘”’‘”ƒ–‹‘ –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ ‘„Ž‹‰ƒ–‹‘–‘ƒ‡Ž‡ƒ•‡’ƒ›‡–•ˆ‘”ƒŽŽŽ‡ƒ•‡•ǤŽ‡••‡‡”‡ ‘  NOTE POWER ƒ” ŠͳͺǡʹͲͳ͸ǡ‘™‡”‡”‰›ǡƒ™Š‘ŽŽ›‘™‡†•—„•‹†‹ƒ”›ǡƒ “ ‘–‡–‹ƒ‘Žƒ”  Ǥ LIFECO  ƒ” Š ͻǡ ʹͲͳ͸ǡ ‹ˆ‡ ‘ƒ‰”‡‡‡–•–‘ƒ “—‹”‡˜‹˜ƒ ‡ƒŽ–Š •—”ƒ ‡ ”‡Žƒ†‹‹–‡†ȋ ƒ‘— ‡† –Šƒ– ‹–• ‹†‹”‡ –ƒ†–‘‹ ”‡ƒ•‡‹–•ͶͻΨ‹–‡”‡•–‹ Ž‘ ‡ƒŽ–Š ‹ƒ ‹ƒŽ‡”˜‹ ‡ ™Š‘ŽŽ› ‘™ ƒŽ•‘ƒ‘— ‡†–Šƒ–˜‹˜ƒ ‡ƒŽ–Šƒ† Ž‘ ‡ƒŽ–Š™‹ŽŽ ‘„‹‡–‘ Š‡ƒŽ–Š ‹•—”ƒ ‡ ƒ”‡–Ǥ Š‡ –”ƒ•ƒ –‹‘ǡ ™Š‹ Š ‹• •—„Œ‡ – ‘’Ž‡–‡† –‘  ‹ –Š‡ –Š‹”† “—ƒ”–‡” ‘ˆ‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹ƒŽ”‡•—Ž–•Ǥ ʹͲͳ͸Ǥ Š‡ –”ƒ•ƒ –‹‘ ‹• ‘–  IFRS  ƒ—ƒ”› ʹͲͳ͸ǡ –Š‡  ‹••—‡† ”‡’”‡•‡–‹‰ ͳ͸ǡ ‹–• ”‹‰Š– –‘ —•‡ –Š‡ —†‡”Ž›‹‰ Ž‡ƒ•‡† ƒ••‡– ƒ† ƒ  NOTE IFRS Š‡ ‹••—‡† ͳͷǡ     0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A41 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A42 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _  ƒ”‹‰˜Ž‡‡‹ˆ›ƒʹ͸Ͳ ͳ Ͷ͵ǡͲͶ͹ ͵Ͷ͸ –Š‡ ͻͳ  ƒ”Œ‘‹– ‘ ‡ƒ”‹‰ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•Ǥ ‘ˆ •Šƒ”‡ ‹ ‹ Ž—†‡† ‹• ƒ† ͷǡʹ͵͹ •Šƒ”‡Š‘Ž†‡”•Ȍ ’ƒ”–‹ ‹’ƒ–‹‰ ƒ –‘ ʹǡ͸ͳͲ †—‡ ƒ„‡” –† ‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ–Š‹• Šƒ”‰‡„‡ˆ‘”‡‘Ǧ ‘–”‘ŽŽ‹‰‹–‡” ”—š‡ŽŽ‡• ƒˆƒ”‰‡ ‘Ž ‹ ‹ ”‘—’‡ ‹˜‡•–‡– ʹͲͳ͸ǡ ‹–• ͵ͳǡ ‘ ̀ͳǡͶͶ͵‹ŽŽ‹‘ ƒ” Š ͷǡʹ͵͹ ‡†‡† ’‡”‹‘† –Š‡ —”‹‰  ͷǡͲͶͻ ͺǡ͵ ͷǡͲͶͻ ƒ””›‹‰˜ƒŽ—‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ƒ” Š͵ͳǡʹͲͳ͸  Š‡ ƒ””›‹‰˜ƒŽ—‡•‘ˆ–Š‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘ NOTE  ”‡Žƒ –Š‡ ”‡•—Ž–ǡ ƒ ‹•—”‡”•‹–Š‡‡ ‡„‡”͵ͳǡʹͲͳͷˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ƒ”‡‘™ • ʹͲͳͷǤ ‹ ƒ “—‹”‡† ‘ ‹‡–›ǡ ••—”ƒ ‡ ‹ˆ‡  —”‹‰–Š‡’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ‹ˆ‡ ‘ ‘’Ž‡–‡†–Š‡–”   ‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”• ˜‡•–‡–’”‘’‡”–‹‡• Šƒ”‡•  ‘”–‰ƒ‰‡Ž‘ƒ•    ‘†•   ƒ””›‹‰˜ƒŽ—‡•ƒ†‡•–‹ƒ–‡†ˆƒ‹”˜ƒŽ—‡•‘ˆ‹˜‡•–‡–•ƒ”‡ƒ• CARRYING NOTE   ƒ”‹‰˜Ž‡ˆ’”‘ʹͷ͵ͳͷ͵͹ ʹǡͻͻͷ ͵ʹ͹ ͳʹͷ ʹǡͷͶ͵ ƒ””›‹‰˜ƒŽ—‡ǡ‡†‘ˆ’‡”‹‘†  E n g ‡–‡–ȂͶ Ͷ͹ ȋ͵ͺȌ ȋͳͺʹȌ ͵ ͳʹͳ ȋ͵ͲȌ ͺ Ȃ ͶͶ ȋͺȌ ȋʹȌ Ȃ Ȃ Ȃ ȋͳͺͺȌ ͳʹͳ ‹˜‹†‡†•ǡ†‹•–”‹„—–‹‘•ƒ†‘–Š‡” Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ ˜‡•–‡–• ͳʹǡʹͲͷ ͳʹǡʹͲͷ ͳͳǡͻ͹͸ ͳͳǡͻ͹͸ ͳ͸ǡͶͻͺ ʹǡͺͳ ͺ͵ ʹǡ͹Ͳͻ ͺ͵ǡͷ͵͸ ʹǡ͹Ͳͻ ͺ͵ǡͷ͵͸ ‘ƒ•ƒ†”‡ ‡‹˜ƒ„Ž‡• ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ‡•‹‰ƒ–‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ˜‹ƒŽ‘ƒ‡ ǡͷ ǡͷʹ͸Ͳʹǡ͸͵Ͳ ʹǡ͸͵Ͳ ʹǡͶͷͶ ʹǡͶͷͶ ͵ͺͶ ͸ǡ͸ͻ ͵ͺͶ ͸ǡ͹ͷʹ ʹͺǡͶͲͳ ͷ͹ͺ ͸ǡ͹ͷʹ ͷ͹ͺ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ‡•‹‰ƒ–‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ‘ƒ•ƒ†”‡ ‡‹˜ƒ„Ž‡• 0 1 _ A P C C   42 _ 5 4 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016   1  6 VALUES - INVESTMENTS INVESTMENTS 1 1 - 0 5 _ v 1 . i n d  AND d

A 4 2  FAIR  VALUES   IN   JOINTLY   CONTROLLED ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• ”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ ‡•–•™ƒ•̈́͵Ͳͺ‹ŽŽ‹‘ȋ̈́ʹͲ͵‹ŽŽ‹‘ƒ––”‹„—–ƒ„Ž‡–‘ ˆ‘ŽŽ‘™•ǣ ”‡ ‘”†‡†‹‹˜‡•–‡–•Ǥ  ƒ”‹‰˜Ž‡ ‹ƒ— ƒ”‹‰˜Ž‡ ƒ‹”˜ƒŽ—‡ ƒ””›‹‰˜ƒŽ—‡  ƒ‹”˜ƒŽ—‡ ƒ””›‹‰˜ƒŽ—‡ CORPORATIONS ‡ƒ•–’‡‡–† • —†ŠŽ„ ‡†‹‰ „› Š‡Ž† ˆ—†• ƒ• ’”‡•‡–‡† ƒ••‡–• –‡† ȋ‘••‘‹˜••  ‘Ž ‘–”‘ŽŽ‡† Œ‘‹–Ž› ‹ ‹˜‡•–‡–• ‘ˆ ȋŽ‘••‡•Ȍ • ƒ•ˆ‡”‘ˆƒ—‹–›’‘Ž‹ ‹‡•ˆ”‘Š‡“—‹–ƒ„Ž‡ ͳǡͳ ͳǡͶͳͷͷͲͳͳ͸ǡͻͳͺ ͳͳͷǡͷ͹Ͳ ͳͳ͸ǡͶͶͻ ͳͳͶǡ͹ͳͻ ͸ǡ͹ ͸ǡ͹ͳͺʹ͸ͳ͹ͳǡʹ͸͹ ͳ͸ͺǡʹ͵͸ ͳ͸ͻǡͺ͹͹ ͳ͸͸ǡʹ͹Ͷ ‹ˆ † ‹‡  Š•ƒ‡ ” Ǥ Š‡ ’”‹ ‡Ǥ •Šƒ”‡ –Š‡ ‹ †‡ Ž‹‡ •‹‰‹ˆ‹ ƒ– ͺͻͻ͵ǡͷʹǡͳ ͵ͳǡͲͻ͸ ʹͻǡͶͳ͵ ͵Ͳǡͺͷʹ ʹͺǡͻ͹ͻ ǡͲ ǡͲͻ͵ʹͻǡ͵ʹʹ ͻǡ͵ʹʹ ͻǡʹͲ͸ ͻǡʹͲ͸ ͳͺ͵ͳ ǡͻ ͺǡ͸ͻͶ ͺǡ͸ͻͶ ͺǡ͵ʹͳ ʹͳ ” ”‡ƒ‹’‹ ƒ‰‘ˆ Šƒ”‰‡ ‹’ƒ‹”‡– ƒ ”‡ ‘”†‡† – ”  ƒ ͳͲ͸‡ ‡„‡”͵ͳǡʹͲͳͷ  ƒ” Š͵ͳǡʹͲͳ͸ ͺʹͺ ͸ͻͷͳͺǡʹͷ͵ ͳ͸ǡͻͲͷ ͳͺǡʹʹͺ ͲʹͶ ͻͲͻ͵Ͳǡ͹ͳʹ ʹͻǡͲʹͻ ͵Ͳǡʹ͹Ͷ •‘‹–•‘–ƒŽ ••‘ ‹ƒ–‡•  AND    ASSOCIATES ͸ͷͺ͵ǡ͸Ͷͷ ǡ͸Ͷͷ ͷʹǡͺͳͷ ʹ͸ǡ͸ͻʹ  116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM ǡ  ͳͲ ʹͲͳͷ 43 A ‡ ‡„‡”͵ͳ ƒ” Š͵ͳǡʹͲͳ͸  ‡ ‡„‡” ͵ͳǡʹͲͳͷ ǡ   ͸͸ ʹͷ ʹͳͳ ͶʹͶ ͵ͺʹ ͸ͷͻ ʹ͵ͳ  ʹͲͳ͸ ʹͲͳ͸ ʹͲͳͷ ʹǡ͸ͳͷ ʹǡͷͻ͸ ͳǡ͵ͻ͸ ͳǡ͵ͻͲ ͷǡͻʹ͹ ͷǡͲͳ͸ ȋʹǡ͵ͷͲȌ ȋͳǡ͹ͷͻȌ ȋͷǡͳͻ͵Ȍ ͳʹǡͶ͸͹ ȋͷǡͶͶ͸Ȍ ȋͶǡ͹ͶʹȌ ͶʹǡͶ͵͵͹͸ǡͺʹʹͶͻǡͲʹʹ Ͷʹǡͳ͸Ͳ ͳͲǡ͸Ͷ͹ ͺͲǡͺʹͻ ͷͲǡͳͲͳ ͳͲǡͺ͵ͻ Š”‡‡‘–Š• ‡†‡†ƒ” Š͵ͳǡ ƒ” Š͵ͳ ͳͻ͵ǡͷ͵ͳ ͳͻͺǡͳͺͳ ͳͻ͵ǡͲͲͳ ͳͻͺǡͳͻͶ ͳͻͺǡͳͻͶ ͳ͹Ͷǡͻ͸͸ ͳͻ͵ǡͲͲͳ ͳͺ͹ǡͶ͵͵ POLICYHOLDERS  ͳͳǡͻͻʹ ͳͳǡ͸ͷ͸  FUND  ȋ„›ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›Ž‡˜‡ŽȌ   ‡˜‡Žͳ ‡˜‡Žʹ ‡˜‡Ž͵ ‘–ƒŽ ‡˜‡Žͳ ‡˜‡Žʹ ‡˜‡Ž͵ ‘–ƒŽ  ƒ ‘”†ƒ ‡ ™‹–Š –Š‡ ”‡Ž‡˜ƒ– •–ƒ–—–‘”› ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•ǣ SEGREGATED  OF  POLICYHOLDERS POLICYHOLDERS FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER –‡• ȋͷǡ͸ͺͺȌ ʹǡ͵͵ͳ   ACCOUNT  ͳʹͲǡ͵ͳ͹ ͸ʹǡͻͺͷ ͳͳǡͷͶͳ ͳʹͲǡʹͺ͵ ͳͻͶǡͺͶ͵ ͸͹ǡ͵͵͵ ͳͳǡ͹͸ͷ ͳͻͻǡ͵ͺͳ  FUND FUND Ž‹‘Ǥ Ž‹‘Ǥ ȏͳȐ ȏͳȐ   ON   SEGREGATED SEGREGATED   CONTRACTS  FUNDS  OF OF   ••‡•Ȍ‘‹˜‡•–‡–• ȋͳǡ͵͹ͶȌ ͹ǡͺ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 4 ACCOUNT ACCOUNT A

 

INVESTMENT Ž‰ƒ‹•‘‹˜‡•–‡–• ͹Ͳʹ ͳǡͷͻ͵  d d n ON ON i   . 1 v _ AND SEGREGATED  5 0 - 1  1 - 6 6  1 0 2 _ C C P ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ†—‡–‘ Šƒ‰‡•‹ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ ‘Ǧ ‘–”‘ŽŽ‹‰—–—ƒŽˆ—†‹–‡”‡•– ‘Ž‹ ›Š‘Ž†‡”™‹–Š†”ƒ™ƒŽ• ‡‰”‡‰ƒ–‡†ˆ—†‹˜‡•–‡–‹ ‡‡”ƒŽ —† ‡‡”ƒŽ —†‹˜‡•–‡–‹•‡‰”‡‰ƒ–‡†ˆ—†‡––”ƒ•ˆ‡”ˆ”‘ ‡‡”ƒŽ —† ͳ͸ ȋͳȌ ȋ͹Ȍ ȋͳȌ ‘Ž‹ ›Š‘Ž†‡”†‡’‘•‹–• ‡–‹˜‡•–‡–‹ ‘‡ ‡–”‡ƒŽ‹œ‡† ƒ’‹–ƒ ‡–—”‡ƒŽ‹œ‡† ƒ’‹–ƒŽ‰ƒ‹•ȋŽ‘  š Ž—†‡•‘–Š‡”Ž‹ƒ„‹Ž‹–‹‡•ǡ‡–‘ˆ‘–Š‡”ƒ••‡–•ǡ‘ˆ̈́ͳǡͳͺ͹‹Ž  š Ž—†‡•‘–Š‡”Ž‹ƒ„‹Ž‹–‹‡•ǡ‡–‘ˆ‘–Š‡”ƒ••‡–•ǡ‘ˆ̈́ͳǡͺͶʹ‹Ž _ 1 ”‡’‘”–‹‰”‡“—‹”‡‡–•‘ˆ‡ƒ Š”‡‰‹‘‘ˆ‹ˆ‡ ‘ǯ•‘’‡”ƒ–‹‘•ǡ‘   ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”• ȏͳȐ  ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† INVESTMENTS   ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”• ȏͳȐ   –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ‘Ǧ ‘–”‘ŽŽ‹‰—–—ƒŽˆ—†‹–‡”‡•–   ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ††‹–‹‘•ȋ†‡†— –‹‘•Ȍǣ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ‘†•  ”—‡†‹ ‘‡ INSURANCE  NOTE Š‡ ˆ‘ŽŽ‘™‹‰ ’”‡•‡–• †‡–ƒ‹Ž• ‘ˆ –Š‡ ‹˜‡•–‡–•ǡ †‡–‡”‹‡† ‹ INVESTMENTS  ‘”–‰ƒ‰‡Ž‘ƒ•   Šƒ”‡•ƒ†—‹–•‹—‹––”—•–• —–—ƒŽˆ—†• ˜‡•–‡–’”‘’‡”–‹‡•    0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A43 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A44 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ —ƒ ‘–ƒ–Žƒ‹‹‹• ͷǡͻͷͳͳ ͳͷ͵ǡ͵͸ͳ ͷǡͳ͵ͳ ʹǡͳͳ͸ ͳͷͺǡͶͻʹ Ȃ ͳͷͲǡʹͲͺ ͷǡͳͶͶ ʹǡͳͳ͸ ͳͷͷǡ͵ͷʹ  ȏͳȐ ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•     ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•   INSURANCE NOTE  ƒ†ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ  ”‡ˆ‡”–‘–Š‡‹ˆ‡ ‘•‡ –‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ•ƒƒ‰‡‡–ǯ• ‘”ˆ—”–Š‡”†‡–ƒ‹Ž•‘‹ˆ‡ ‘ǯ•”‹•ƒ†‰—ƒ”ƒ–‡‡‡š’‘•—”‡ƒ†  ȏͳȐ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ”  ‹    ‹ˆ‡ ‘ǯ• ƒ„‘—– ‹ˆ‘”ƒ–‹‘ ’‘Ž‹ ›Š‘Ž†‡”•ˆ‘”™Š‹ Š‹ˆ‡ ‘Šƒ•—–‹Ž ƒ††‹–‹‘ƒŽ ’”‡•‡–• ˆ‘ŽŽ‘™‹‰ Š‡ ƒ˜ƒ ‘– ‹• ™Š‡”‡‹ˆ‡ ‘†‘‡•‘–Šƒ˜‡˜‹•‹„‹Ž‹–›–Š”‘—‰Š–‘–Š‡—†‡”Ž›‹‰ ˜ƒŽ—‡ ˆƒ‹” ™Š‡”‡ ƒ••‡–• –Š‘•‡ ‹ Ž—†‡ ƒ••‡–• ʹ ‡˜‡Ž ʹͲͳͷȌǡ„ƒ•‡†‘‹ˆ‡ ‘ǯ•ƒ„‹Ž‹–›–‘—–‹Ž‹œ‡‘„•‡”˜ƒ„Ž‡ǡ“—‘–‡† –”ƒ•ˆ‡” Š ™‡”‡ ‡“—‹–› ȋ̈́Ͷͳʹ‹ŽŽ‹‘ ‡˜‡Žͳ ˆ‘”‡‹‰ –‘ ‡”–ƒ‹ ‡˜‡Žʹ ʹͲͳ͸ǡ ˆ”‘ –”ƒ•ˆ‡””‡† ‘ˆ ‘–Š• –Š”‡‡ ˆ‹”•– –Š‡ —”‹‰ NOTE   ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘†  E n ‹‡‘ ‘” ‡–‡ Ž•‹‹ƒ‹ ˆ ͹‹Ž‘‘†‡ˆ‡””‡† ‘ˆ ̈́͹͵‹ŽŽ‹‘ ‘ˆ Žƒ••‹ˆ‹ ƒ–‹‘ –Š‡ ‘””‡ –‡† ‹ˆ‡ ‘  ‘„•‡”˜ ‹ ”‡ƒ•‡† –‘ ’”‹ƒ”‹Ž› †—‡ ƒ”‡ ͵ ‡˜‡Ž ‘ˆ ‘—– ”ƒ•ˆ‡”•  g ”ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ ƒŽ‡• —” Šƒ•‡• ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ‹ Ž—†‡†‹•‡‰”‡‰ƒ–‡†ˆ—†‹˜‡•–‡–‹ ’”‡•‡–ƒ–‹‘ǤŠ‡”‡ Žƒ••‹ˆ‹ ƒ–‹‘Šƒ†‘‹’ƒ –‘–Š‡‡–‡ƒ” ƒ”‡–’”‹ ‡•™‹–Š—Ž–‹’Ž‡’”‹ ‹‰˜‡†‘”•ǤŠ‡”‡™‡”‡‘–”ƒ 0 1 _ A P C C   44 _ 7 6 2 0   POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 -  INSURANCE SEGREGATED 1 AND 1 - 0 5 _ v 1  INVESTMENT . i n d d

ȏͳȐ A 4  4 ȏͳȐ ǡͷ ʹǡʹͷ͵ Ȃ ʹǡʹͷ͵   AND  FUNDS  CONTRACT   INVESTMENT ‹œ‡†‡˜‡Ž͵‹’—–•–‘†  ȋ ‘–‹—‡†Ȍ  LIABILITIES ƒŽƒ‹‹‹• ‘ ‡–‡– ‘–ƒ– ‹„Ž–‡– ‘ˆ‘” –‘ Ž‹ƒ„‹Ž‹–‹‡• ‘–”ƒ – ‹˜‡•–‡– –‘ Ž‹ƒ„‹Ž‹–‹‡• –ƒš  ‹‰•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ   •ˆ‡”•‹–‘‡˜‡Ž͵†—”‹‰–Š‡’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸Ǥ ƒ „ ‹ Ž ‹ – › ‘ ˆ ‹  ’ — – • ‹  ˜ ƒ Ž — ƒ – ‹ ‘   ‡ – Š ‘ † ‘ Ž ‘ ‰ ‹ ‡ • ƒ • ‡ ˜ ‹ † ‡  ‡ † „ ›  ‘ CONTRACT  ͳͳͳǡͲ͵ͻ ȋͳʹͳȌ ‘‡  ’”‹ ‡•‹ƒ –‹˜‡ƒ”‡–•Ǥ ‡–‡”‹‡ˆƒ‹”˜ƒŽ—‡ǣ ƒ••‡–•Ǥ ‹• —••‹‘ƒ†ƒŽ›•‹•‘ˆ–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ –Š‡ƒƒ‰‡‡–‘ˆ–Š‡•‡•‡‰”‡‰ƒ–‡†ˆ—†”‹••ǡ Ž„‡ ” ‘Ž ƒ– ” •— • ƒ† •‘—” ‡• ’”‹ ‹‰ ƒ”‡– ‘”ƒŽ ˆ”‘ ‹Žƒ„Ž‡ ‡ˆ‘˜Ž –˜Ž ƒ ‡͵ͳǡ ‡ ‡„‡” ƒ– ʹ ‡˜‡Ž –‘ ͳ ‡˜‡Ž ˆ”‘ ”‡†  LIABILITIES Ž‹‰˜Ž‡ƒ̈́ǡͶ‹Ž‘Š˜„‡‡ Šƒ˜‡ ̈́ʹǡ͸Ͷ͸‹ŽŽ‹‘ ƒ– ˜ƒŽ—‡† ‘Ž†‹‰• ‡–‡–‘ƒ —– ˆ ‡”‰–† ˆ—† •‡‰”‡‰ƒ–‡† ‘ˆ ƒ ‘—– ‘ ˜‡•–‡–• ͷǡ͸ ǡͶͳͷʹǡ͵ʹͶ ͷǡͳͶͶ ͳͷ͹ǡͶ͸ͺ ͸ǡͶ ǡ͵ͳͷͷǡ͸ͳͶ ͷǡͳ͵ͳ ͳ͸Ͳǡ͹Ͷͷ Ž‹ƒ„‹Ž‹– Ž‹ƒ„‹Ž‹– ”‘•• ”‘•• › ›  ‡‹•—”ƒ ‡ ‡‹•—”ƒ ‡ ƒ” Š͵ͳ ͳ͹ͷ ͳͲǡ͵ͻͲ ͳͳǡ͹͸ͷ ͳͷͳ ͳͳǡ͹͸ͷ ͳͳǡͷͶͳ •‡•‡ ƒ••‡–• ‡ ƒ••‡–• ͳͻȋ͸Ͳ͹Ȍ ȋͳ͸ͻȌ ʹͲͳ͸ ͸ ͻͶͶ ͸͸ ȋͳȌ Ȃ –‘–Š‡ —””‡–’‡”‹‘†  ǡ ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ ”„”–‘‘ˆ ””‘„‘”ƒ–‹‘ ‡‡„”͵ͳ ‡ ‡„‡” ʹͲͳͷ – –  ǡ 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM  † –ƒ–‡ ƒ’‹–ƒŽ 45 A  ” —„‡ ‘ˆ•Šƒ”‡•      † ̈́ ̈́ ͻ͹Ͳ ͻ͹Ͳ –ƒ–‡ ƒ’‹–ƒŽ ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ –‹‰ Šƒ”‡• ™‡”‡ ‹••—‡† —†‡” –Š‡  ” ͵ ͸ͷ͸ Ͷͳʹǡ͸͵͹ǡ͹ͻͳ ͷͻ͵  –Š‡ ‘”’‘”ƒ–‹‘ǯ• ’ƒ”–‹ ‹’ƒ–‹‰ •Šƒ”‡• ‡‡ƒ„Ž‡ ‹”•–”‡ˆ‡””‡†Šƒ”‡•ǡͳͻͺ͸‡”‹‡• —„‡ ‘ˆ•Šƒ”‡• ‡ ‘–‹‰ Šƒ”‡• ‹••—‡† ˆ‘” –Š‡ –Š”‡‡ ‘–Š• ͶͺǡͺͷͶǡ͹͹ʹ ʹ͹ ͶͺǡͺͷͶǡ͹͹ʹ ʹ͹ †‡†ƒ” Š͵ͳǡʹͲͳͷȌǤ ‹–‡†—„‡”‘ˆ ‹”•–”‡ˆ‡””‡†Šƒ”‡•ǡ‹••—ƒ„Ž‡ •Ǣƒ†ƒ—Ž‹‹–‡†—„‡”‘ˆ—„‘”†‹ƒ–‡‘–‹‰ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER     ͸ͺ͵ ͸ͺ͵   POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  CAPITAL       5 4 A Shares



 d Shares  d Shares  n i . 1  Shares  v OUTSTANDING _  STATED 5 Shares  0 - 1  1 - 8 AND 6   1 0 2 Participating _ Participating  ••—‡†—†‡”–‘ ’–‹‘Žƒ Ȃ Ȃ ͳǡ͹ʹͺǡͷʹʹ ͸͵ ͳͻͺ͸‡”‹‡•‡”‹‡•‡”‹‡•‡”‹‡•‡”‹‡•‡”‹‡•  ͵ͻͲǡͷ͹ͺ ͸ǡͲͲͲǡͲͲͲ ͺǡͲͲͲǡͲͲͲ ʹͲ ͸ǡͲͲͲǡͲͲͲ ͳͲǡͲͲͲǡͲͲͲ ͵ͻͲǡͷ͹ͺ ͳͷͲ ͺǡͲͲͲǡͲͲͲ ʹͲͲ ͸ǡͲͲͲǡͲͲͲ ͳͷͲ ͺǡͲͲͲǡͲͲͲ ʹͷͲ ͸ǡͲͲͲǡͲͲͲ ͳͲǡͲͲͲǡͲͲͲ ʹͲ ʹͲͲ ͳͷͲ ͺǡͲͲͲǡͲͲͲ ʹͲͲ ͳͷͲ ʹͷͲ ʹͲͲ Participating Ǧ C Ǧ C P ——Žƒ–‹˜‡‡†‡‡ƒ„Ž‡ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͶͳͶǡ͵͸͸ǡ͵ͳ͵ ͸ͷ͸ ͶͳͶǡ͵͸͸ǡ͵ͳ͵ ͸ͷ͸ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ͶͳͶǡ͵͸͸ǡ͵ͳ ‘Ǧ ——Žƒ–‹˜‡‡†‡‡ƒ„Ž‡ǡˆ‹š‡†”ƒ–‡  _ 1 Šƒ”‡•Ǥ ‹”•–”‡ˆ‡””‡†Šƒ”‡•  ‘”’‘”ƒ–‹‘ǯ• š‡ —–‹˜‡ –‘  ’–‹‘ Žƒ ȋͳǡʹͷͳǡ͸ͷ͹ —„‘”†‹ƒ– ‡†‡†ƒ” Š͵ͳǡʹͲͳͷˆ‘”ƒ ƒ•Š ‘•‹†‡”ƒ–‹‘‘ˆ̈́ͶͲ‹ŽŽ‹‘ȌǤ ‘” –Š‡ –Š”‡‡ ‘–Š• ‡†‡† ƒ” Šƒ‘—–‡†–‘̈́ͲǤ͵ͳͳʹͷ’‡”•Šƒ”‡ȋ̈́ͲǤʹͻ’‡”•Šƒ”‡‹ʹͲͳͷȌǤ ͵ͳǡ ʹͲͳ͸ǡ †‹˜‹†‡†• †‡ Žƒ”‡† ‘  Participating —”‹‰ –Š‡ –Š”‡‡ ‘–Š• ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘ —„‘”†‹ƒ–‡ ‘ Participating ƒ”–‹ ‹’ƒ–‹‰”‡ˆ‡””‡†Šƒ”‡• —„‘”†‹ƒ–‡‘–‹‰Šƒ”‡• Total  Non —”‹‰–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ‘ ——Žƒ–‹˜‡”‡† ™‡”‡’—” Šƒ•‡†ˆ‘” ƒ ‡ŽŽƒ–‹‘ȋʹͲǡͲͲͲˆ‘”–Š‡–Š”‡‡‘–Š•‡    Non  NOTE AUTHORIZED Š‡ƒ—–Š‘”‹œ‡† ƒ’‹–ƒŽ‘ˆ‘™‡”‘”’‘”ƒ–‹‘ ‘•‹•–•‘ˆƒ—Ž‹ ‹•‡”‹‡•Ǣƒ—Ž‹‹–‡†—„‡”‘ˆƒ”–‹ ‹’ƒ–‹‰”‡ˆ‡””‡†Šƒ”‡ ISSUED     0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A45 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A46 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ š’‡ –‡†Ž‹ˆ‡ȋ›‡ƒ”•Ȍ ƒ”˜Ž‡’”•‘‘–‘̈́‘–‘Ȍ ͵ǤͶͺ ʹͻǤͷͳ  ‡š’‡•‡•‹–Š‡•–ƒ–‡‡–•‘ˆ‡ƒ”‹‰•Ǥ ‹–••—„•‹†‹ƒ”‹‡•ƒ‘—–‡†–‘̈́ʹͲ‹ŽŽ‹‘ȋ̈́ʹͲ‹ŽŽ‹‘‹ʹͲͳͷȌ ‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ–‘–ƒŽ ‘’‡•ƒ–‹‘‡š’‡•‡”‡Žƒ–‹‰–‘–Š ˆƒ‹”˜ƒŽ—‡‘ˆ–Š‡‡“—‹–›‹˜‡•–‡–•ƒ––Š‡‰”ƒ–†ƒ–‡ǡƒ‘”–‹œ • •Šƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘’Žƒ•Ǥ‘’‡•ƒ–‹‘‡š’‡•‡‹•”‡ ‘”†‡ ‘–Š‡” ƒ††‹–‹‘ǡ  ‡’Ž‘›‡‡•Ǥ ƒ† ‘ˆˆ‹ ‡”• ‡”–ƒ‹ ‘’– –‘ ‰”ƒ–‡† •–‘  ‡•–ƒ„Ž‹•Š‡† ƒŽ•‘ Šƒ˜‡  ƒ† ‹ˆ‡ ‘ ‹ƒ ‹ƒŽǡ ‘™‡”  ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡‡š‡” ‹•‡’”‹ ‡ȋ̈́Ȁ‘’–‹‘Ȍ ƒ‹”˜ƒŽ—‡’‡”•–‘ ‘’–‹‘ȋ̈́Ȁ‘’–‹‘Ȍ ͳͳǡͻ͹ͻǡʹͺʹ š’‡ –‡†˜‘Žƒ–‹Ž‹–› ʹͺǤ͸Ͳ ‹˜‹†‡†›‹‡Ž†  ͳ͵ǡ͵ͳͺǡͲ͸͸ ™‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ƒ••—’–‹‘•ǣ Š‡ˆƒ‹”˜ƒŽ—‡‘ˆ–Š‡•‡‘’–‹‘•™ƒ•‡•–‹ƒ–‡†—•‹‰–Š‡Žƒ Ǧ ‘”’‘”ƒ–‹‘ ‘™‡” ʹͲͳ͸ǡ ͵ͳǡ  ‘’–‹‘•‹ʹͲͳͷȌ—†‡”‹–•š‡ —–‹˜‡–‘ ’–‹‘ŽƒǤ ƒ” Š ‡†‡† ‘–Š• –Š”‡‡ –Š‡ —”‹‰ Compensation Š‡‡š‡” ‹•‡’”‹ ‡‘ˆ–Š‡ʹͲǡͲͻͻǡʹʹ͵‘—–•–ƒ†‹‰‘’–‹‘•”ƒ‰‡•  ’–‹‘•‡š‡” ‹•ƒ„Ž‡ƒ–‡†‘ˆ’‡”‹‘†  —–•–ƒ†‹‰ƒ–„‡‰‹‹‰‘ˆ›‡ƒ”       Šƒ‰‡•†—”‹‰–Š‡’‡”‹‘†•‡†‡†‘–Š‘•‡†ƒ–‡•‹•ƒ•ˆ‘ŽŽ‘™•ǣ •—ƒ”›‘ˆ–Š‡•–ƒ–—•‘ˆ‘™‡”‘”’‘”ƒ–‹‘ǯ•š‡ —–‹˜‡–‘  ‹••—ƒ ‡Ǥ †‡”‘™‡”‘”’‘”ƒ–‹‘ǯ•š‡ —–‹˜‡–‘ ’–‹‘Žƒǡʹ͸ǡͲ͸ͷǡ͸ STOCK NOTE   —•ƒ†–‡†‘‡‹† ͲͲͻʹ͵ʹǤ͵ͳǡ͹ǡ͵ʹͺǤͺ͸ ͳͻǡͳ͹ʹǡͷ͵ͻ ʹͻǤͲ͵ ʹͲǡͲͻͻǡʹʹ͵ —–•–ƒ†‹‰ƒ–‡†‘ˆ’‡”‹‘† ‹•Ǧˆ”‡‡‹–‡”‡•–”ƒ–‡ E n g š”‹‡ȂȂȋǡͷǡͷȌ ͵ͳǤ͹Ͳ ͵ʹǤͲ͵ ȋͳǡʹͷͳǡ͸ͷ͹Ȍ ͵͵Ǥͺͳ ȋ͵ͷǡͲͲͲȌ Ȃ ͳǡʹͷ͹ǡ͸ͷͳ Ȃ ʹͻǤͷͳ Ȃ Ȃ ͳǡͶͲͺǡͶ͵͵ ‘”ˆ‡‹–‡†ƒ†‡š’‹”‡† š‡” ‹•‡† ”ƒ–‡† 0 1 _ A P C C   46 OPTION _ 9 2 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - SHARE 1 1 - 0  5 expense _  PLAN v 1 . i n d d

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 A BASED 4 6  ͺ͸Ͳ͹ͲʹͺǤͻͻ ͳͺǡ͸ͻͲǡ͹ͻͲ   COMPENSATION   ’–‹‘• ‡†‘˜‡”–Š‡˜‡•–‹‰’‡”‹‘†Ǥ ‘”–Š‡–Š”‡‡‘–Š• ˆ”‘̈́ͳͺǤͷʹ–‘̈́ͶͲǤ͹ͲǤ ƒ†‹•”‡ ‘”†‡†‹‘’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡ — „ • ‹ † ‹ ƒ ” ‹ ‡ • ‘ ˆ – Š ‡  ‘ ” ’ ‘ ” ƒ – ‹ ‘  Š ƒ ˜ ‡ ‡ • – ƒ „ Ž ‹ • Š ‡ †  ’–‹‘Žƒƒ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ƒ†ʹͲͳͷǡƒ† Š‘Ž‡•‘’–‹‘Ǧ’”‹ ‹‰‘†‡Ž™‹–Š–Š‡ˆ‘ŽŽ‘™‹‰ ‡•–‘ ‘’–‹‘•‰”ƒ–‡†„›–Š‡‘”’‘”ƒ–‹‘ƒ† ͻͳ—„‘”†‹ƒ–‡‘–‹‰Šƒ”‡•ƒ”‡”‡•‡”˜‡†ˆ‘” ‘’ƒ• —•ƒ– ‘ Š ‘–‘• ƒ„‡ ƒ› ‘’–‹‘• ™Š‹ Š –‘ ’—”•—ƒ– ’Žƒ• ‹‘ †„ƒ•‡†‘–Š‡ˆƒ‹”˜ƒŽ—‡‘ˆ–Š‡‘’–‹‘•‘”–Š‡ ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ ƒ ͳ Ͳ͸ƒ” Š͵ͳǡʹͲͳͷ ʹͲͳ͸ ƒ” Š͵ͳǡ š”‹‡’‹‡’–‹‘• ‡š‡” ‹•‡’”‹ ‡ ”‡ͳͶͺͶ͵ ’‹ȋͳǡʹͷ͹ǡ͸ͷͳ ‘’–‹‘• ͳǡͶͲͺǡͶ͵͵ ‰”ƒ–‡†  ̈́̈́ ƒ” Š͵ͳ ͻʹͳͷͷ ʹͺǤ͹ ͳͻǡʹͲͳǡͷͶͷ ʹͲͳ͸ ʹͳǤͷ ͵Ǥͻ ͳǤͳ ͺ   Ψ Ψ Ψ  ǡ   ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ ‡š‡” ‹•‡’”‹ ‡ ƒ” Š͵ͳ ͵͵Ǥͺͳ ʹͲͳͷ ʹͺǤ͸ͺ ͵Ǥ͸͹ ʹͳǤͲ ͳǤͳ ͶǤͳΨ ͺ ͵ Ψ , Ψ 116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 47 A  •Šƒ”‡• ƒ† †‡„‡–—”‡•Ǥ Š‡ „‘ƒ”†• ‘ˆ ‹’ƒ–‹‰ •Šƒ”‡•ǡ †‡„‡–—”‡•ǡ ’ƒ”–‹ ‹’ƒ–‹‰ –‹‘˜‹‡™•‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡•ƒ•ƒ –‹ˆ›ǡ ‡ƒ•—”‡ ƒ† ”‡’‘”– ƒŽŽ ƒ–‡”‹ƒŽ ”‹••Ǥ ™Š‹ Š–Š‡›‘’‡”ƒ–‡Ǣ ‡”˜ƒŽ—‡‹–Š‡ ‘–‡š–‘ˆ‹ˆ‡ ‘ǯ•‘’‡”ƒ–‹‘ƒŽ  ‹• ƒ Ž‘‰Ǧ–‡” ‹˜‡•–‘” ƒ† ƒ• •— Š Š‘Ž†• ƒ‰‡‡– ’”‘ ‡†—”‡• ˆ‘” ‹’Ž‡‡–‹‰ ƒ† ’‘”ƒ–‹‘Ǣ †‹ƒ”‹‡•ƒ–ƒŽ‡˜‡Ž–Šƒ–™‹ŽŽ‡š ‡‡†–Š‡”‡Ž‡˜ƒ– ‡ ‘‡•—”‹‰•–ƒ„Ž‡ƒ ‡••–‘ ƒ’‹–ƒŽƒ”‡–•Ǣ ‘–Š‡ ƒ’‹–ƒŽƒ”‡–•Ǥ ‰‹–• ƒ’‹–ƒŽƒ”‡–‘ǣ †ˆ‘”‹’Ž‡‡–‹‰ƒ†‘‹–‘”‹‰‹–• ƒ’‹–ƒŽ ’”‘˜‡• ƒ’‹–ƒŽ–”ƒ•ƒ –‹‘••— Šƒ•–Š‡‹••—ƒ ‡ǡ Œ‡ ––‘”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•ƒ†–Š‡› –”ƒ–‡‰›–‘‹˜‡•–‘ƒ–‹‡Ž›„ƒ•‹•‹‹–•‘’‡”ƒ–‹‰  Š‡”‹• Šƒ”ƒ –‡”‹•–‹ •ƒ†Ž‹“—‹†‹–›‘ˆ‹–•Š‘Ž†‹‰•Ǥ —Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•Ǥ ‘™‡˜‡”ǡ‹ˆ‡ ‘ƒ† ’‹–ƒŽƒƒ‰‡‡–Ǥƒƒ‰‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ ƒ•ƒ––Š‡‹†‹˜‹†—ƒŽ‘’‡”ƒ–‹‰•—„•‹†‹ƒ”›Ž‡˜‡ŽǤŠ‡ ‘‡•‡ —”‹–‹‡•ˆ‘”Ž‹“—‹†‹–›’—”’‘•‡•Ǥ ”ƒ–‹‘ƒ›ƒ†Œ—•––Š‡ƒ‘—–‘ˆ†‹˜‹†‡†•’ƒ‹†–‘ •ƒƒ† ”‘—’‡”—š‡ŽŽ‡•ƒ„‡”–ǡƒ”‡”‡•’‘•‹„Ž‡ˆ‘” FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ™‡ŽŽƒ• ƒ•Šƒ†ˆ‹š‡†‹ ƒƒ‰‡‡–•–”ƒ–‡‰›ƒ”‡ǣ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER MANAGEMENT  7 4 A

‹–ƒŽƒ•†‡• ”‹„‡†„‡Ž‘™Ǥ d d n i . 1 CAPITAL v _ 5  0 - 1 1 - 10 6   1 0 2 _ –‘ƒ‹–ƒ‹–Š‡ ƒ’‹–ƒŽ‹œƒ–‹‘‘ˆ‹–•”‡‰—Žƒ–‡†‘’‡”ƒ–‹‰•—„•‹ –‘ƒ‹–ƒ‹•–”‘‰ ”‡†‹–ƒ†ˆ‹ƒ ‹ƒŽ•–”‡‰–Š”ƒ–‹‰•‘ˆ‹ˆ –‘’”‘˜‹†‡ƒ‡ˆˆ‹ ‹‡– ƒ’‹–ƒŽ•–”— –—”‡–‘ƒš‹‹œ‡•Šƒ”‡Š‘Ž† ‹‹—”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•‹–Š‡Œ—”‹•†‹ –‹‘•‹ ƒ† ”‹••ƒ†•–”ƒ–‡‰‹ ’Žƒ•Ǥ ’”‘˜‹†‡ƒ––”ƒ –‹˜‡Ž‘‰Ǧ–‡””‡–—”•–‘•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡‘” ’”‘˜‹†‡•—ˆˆ‹ ‹‡–ˆ‹ƒ ‹ƒŽˆŽ‡š‹„‹Ž‹–›–‘’—”•—‡‹–•‰”‘™–Š• ‘’ƒ‹‡•ƒ†‘–Š‡”‹˜‡•–‡–•ƒ•‘’’‘”–—‹–‹‡•’”‡•‡–Ǣƒ† ƒ‹–ƒ‹ƒƒ’’”‘’”‹ƒ–‡ ”‡†‹–”ƒ–‹‰–‘‡•—”‡•–ƒ„Ž‡ƒ ‡••– C C

P _ 1    LIFECO ‹ˆ‡ ‘ƒƒ‰‡•‹–• ƒ’‹–ƒŽ‘„‘–Šƒ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•ƒ•™‡ŽŽ ’”‹ƒ”›‘„Œ‡ –‹˜‡•‘ˆ‹ˆ‡ ‘ǯ• ƒ’‹–ƒŽ  NOTE •ƒŠ‘Ž†‹‰ ‘’ƒ›ǡ‘™‡”‘”’‘”ƒ–‹‘ǯ•‘„Œ‡ –‹˜‡•‹ƒƒ‰‹        ‹ˆ‡ ‘Šƒ•‡•–ƒ„Ž‹•Š‡†’‘Ž‹ ‹‡•ƒ†’”‘ ‡†—”‡•†‡•‹‰‡†–‘‹†‡ ’‡”ƒ‡– ƒ† ‘•–Ǧ‡ˆˆ‡ –‹˜‡ •‘—” ‡ ‘ˆ ƒ’‹–ƒŽǤ’‘•‹–‹‘•‹Ž‘‰Ǧ–‡”‹˜‡•–‡–•ƒ• Š‡‘”’‘”ƒ–‹‘ Š‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘‹•”‡•’‘•‹„Ž‡ˆ‘” ƒ ‹•”‡•’‘•‹„Ž‡ˆ‘”‡•–ƒ„Ž‹•Š‹‰ ƒ’‹–ƒŽƒƒ‰‡‡–’”‘ ‡†—”‡•ƒ ’Žƒ•ǤŠ‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘”‡˜‹‡™•ƒ†ƒ’ ƒƒ‰‡‡–‘ˆ‹ˆ‡ ‘‹•”‡•’‘•‹„Ž‡ˆ‘”‡•–ƒ„Ž‹•Š‹‰ ƒ’‹–ƒŽƒ ‘‹–‘”‹‰–Š‡ ƒ’‹–ƒŽ’ŽƒǤ Š‡‘”’‘”ƒ–‹‘ƒƒ‰‡•‹–• ƒ’‹–ƒŽ–ƒ‹‰‹–‘ ‘•‹†‡”ƒ–‹‘– ‘”†‡”–‘ƒ‹–ƒ‹‘”ƒ†Œ—•–‹–• ƒ’‹–ƒŽ•–”— –—”‡ǡ–Š‡‘”’‘ •Šƒ”‡Š‘Ž†‡”•ǡ”‡–—” ƒ’‹–ƒŽ–‘•Šƒ”‡Š‘Ž†‡”•‘”‹••—‡ ƒ’‹–ƒŽǤ Š‡ ƒ’‹–ƒŽ •–”— –—”‡ ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ ‘•‹•–• ‘ˆ ‘Ǧ’ƒ”–‹ ”‡†‡’–‹‘ ƒ† ”‡’—” Šƒ•‡ ‘ˆ ‘‘ •Šƒ”‡•ǡ†‹”‡ –‘”•‘ˆ–Š‡’—„Ž‹ •—„•‹†‹ƒ”‹‡•ǡƒ•™‡ŽŽƒ•–Š‘•‡‘ˆƒ”‰‡ ’‡”’‡–—ƒŽ ’”‡ˆ‡””‡† –Š‡‹””‡•’‡ –‹˜‡ ‘’ƒ‹‡•ǯ ƒ’‹–ƒŽƒƒ‰‡‡–Ǥ Š‡‘”’‘”ƒ–‹‘‹–•‡Žˆ‹•‘–•—„Œ‡ ––‘‡š–‡”ƒŽŽ›‹’‘•‡†”‡‰ ‡”–ƒ‹‘ˆ‹–•ƒ‹•—„•‹†‹ƒ”‹‡•ƒ† ǯ••—„•‹†‹ƒ”‹‡•ƒ”‡•—„ ƒƒ‰‡–Š‡‹” ƒ’ •Šƒ”‡Š‘Ž†‡”•ǯ ‡“—‹–› ƒ† ‘Ǧ ‘–”‘ŽŽ‹‰ ‹–‡”‡•–•Ǥ Š‡‘”’‘”ƒ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A47 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A48 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ Š‡ •—„•‹†‹ƒ”‹‡•–Šƒ–ƒ”‡•—„Œ‡ ––‘”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“ Ž‘‰Ǧ–‡”‹˜‡•–‡–•ƒ†‡„› ǡ„—•‹‡••‡š’ƒ•‹‘ƒ†‘–Š‡”   ƒ’‹–ƒŽ ‘ˆ Ž‡˜‡Ž• ‹‹— ƒ‹–ƒ‹ –‘ ”‡“—‹”‡† ƒ”‡ •—„•‹†‹ƒ”‹‡• †‡ƒŽ‡”•ǡ‡š‡’–ƒ”‡–†‡ƒŽ‡”•ǡ’‘”–ˆ‘Ž‹‘ƒƒ‰‡”•ǡ‹˜‡•–‡– ǯ• ƒ’‹–ƒŽ‹•’”‹ƒ”‹Ž›—–‹Ž‹œ‡†‹‹–•‘‰‘‹‰„—•‹‡••‘’‡ •Š‡‡–Ǥ „ƒŽƒ ‡ •–”‘‰ ’”ƒ –‹ ‡•‹”‡•’‘•‡–‘ Šƒ‰‹‰‡ ‘‘‹  ‘†‹–‹‘•Ǥ ƒ ƒ† „ƒ•‡ ƒ’‹–ƒŽ •‘Ž‹† ƒ ƒ‹–ƒ‹‹‰ ‡š’ƒ•‹‘Ǥ ǯ• ƒ’‹–ƒŽƒƒ‰‡‡–’”ƒ –‹ ‡•ƒ”‡ˆ‘ —•‡†‘’” ƒ’’”‘’”‹ƒ–‡Ž› ™Š‹ Š ƒ‡” ƒ ǯ• ƒ’‹–ƒŽƒƒ‰‡‡–‘„Œ‡ –‹˜‡‹•–‘ƒš‹‹œ‡•Šƒ”‡Š‘Ž†‡””    IGM ”‡“—‹”‡‡–•‹–Š‡‹””‡•’‡ –‹˜‡Œ—”‹•†‹ –‹‘•Ǥ –Š‡”ˆ‘”‡‹‰‘’‡”ƒ–‹‘•ƒ†ˆ‘”‡‹‰•—„•‹†‹ƒ”‹‡•‘ˆ‹ˆ‡ ‘ƒ”‡ ʹͲͳ͸ǡ–Š‡”ƒ–‹‘ˆ‘” ”‡ƒ–Ǧ‡•–‹ˆ‡™ƒ•ʹ͵͸Ψȋʹ͵ͺΨƒ–‡ —”’Ž ƒ† ƒ’‹–ƒŽ ‘–‹—‹‰ ‹‹— –Š‡ ƒ• ‘™ •—„•‹†‹ƒ”‹‡•ǡ ‡ƒ•—”‡‡–ˆ‘”Ž‹ˆ‡‹•—”ƒ ‡ ‘’ƒ‹‡•‹ ‘”’‘”ƒ–‡†—†‡”–Š‡   ƒ  ƒNOTE † ƒ ǡ – Š ‡  ˆ ˆ ‹ ‡ ‘ ˆ – Š ‡  — ’ ‡ ” ‹  – ‡  † ‡  – ‘ ˆ  ‹  ƒ  ‹ ƒ Ž   • – ‹ –  •Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›Ǥ •—„•‹†‹ƒ”‹‡•Šƒ˜‡ ‘’Ž‹‡†™‹–ŠƒŽŽ” E n g 0 1  _ FINANCIAL A P C C  48 _ 10 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - CAPITAL 0 5 _  v 1 . i n d d

A 4 8  MANAGEMENT —’”• ‡—ƒ‘› ƒ‹ƒ”‡“—‹” ƒ’‹–ƒŽ ”‡‰—Žƒ–‘”› •—’’‘”–•  ȋ ‘–‹—‡†Ȍ  —‹”‡‡–•‹ Ž—†‡‹˜‡•–‡–†‡ƒŽ‡”•ǡ—–—ƒŽˆ—† ‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•Ǥ ”ƒ–‹‘•–‘•—’’‘”–™‘”‹‰ ƒ’‹–ƒŽ”‡“—‹”‡‡–•ǡ ”‡“—‹”‡†–‘ ‘’Ž›™‹–ŠŽ‘ ƒŽ ƒ’‹–ƒŽ‘”•‘Ž˜‡ › ˆ—†ƒƒ‰‡”•ƒ†ƒ–”—•– ‘’ƒ›ǤŠ‡•‡  ‡–—”•™Š‹Ž‡‡•—”‹‰–Šƒ– ‹• ƒ’‹–ƒŽ‹œ‡†‹ ‡•‡”˜‹‰–Š‡“—ƒŽ‹–›‘ˆ‹–•ˆ‹ƒ ‹ƒŽ’‘•‹–‹‘„› ƒ‡‘‡–‡™”‹‰ ƒ‹ƒǡ ‹—†–‘” Ž‹“—‹†‹–› ƒ’‹–ƒŽǡ ™‘”‹‰ ‡‹–Š‡” ‘ „ƒ•‡†  ”‰Ž”› •‡•• – ’–Ž ƒƒ‰‡‡– ƒ’‹–ƒŽ ‹–• ƒ••‡••‡• ”‡‰—Žƒ”Ž›  ‡„‡”͵ͳǡʹͲͳͷȌǤ •–”ƒ–‡‰‹ ‘„Œ‡ –‹˜‡•Ǥ •™”‹‰ ƒ‹ƒ‡• „—•‹‡•• ƒ† ‡‡†• ƒ’‹–ƒŽ ™‘”‹‰ ‡‡–•ǡ  –‘• ƒ‡–„‹Š†  ’–Ž ƒ†‡“—ƒ › ƒ’‹–ƒŽ ƒ ‡•–ƒ„Ž‹•Š‡† Šƒ• —–‹‘• • ‡—”• Ǥ • – ƒ ͵ͳǡ ƒ” Š ƒ– • ȋȌǤ ‡“—‹”‡‡–• —• Insurance  Companies  Act ȋƒƒ†ƒȌƒ†–Š‡‹” 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 49 A ‹–• Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• ƒ† Ǧƒƒ†‹ƒ‡ƒ”‹‰•ƒ–†‹ˆˆ‡”‡–’‘‹–•‹ ‹ˆ‘”‡‹‰ —””‡ ›‡š Šƒ‰‡”ƒ–‡•‘ —”Ǥ ‘‡ Šƒ‰‡•Ǣƒ† ‹‘‘ˆƒ••‡–•ƒ”‹•‹‰ˆ”‘ Šƒ‰‡•‹‡“—‹–› ƒ†–‘ Šƒ‰‡•‹ȋ”‡Ȍ‹˜‡•–‡–ƒ’’”‘ƒ Š‡• ‡‡–›’‡•‘ˆ”‹••ǣ —””‡ ›”‹•ǡ‹–‡”‡•–”ƒ–‡ –‹˜‹–›ƒ••—’–‹‘•Ǣ •‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ƒ•ƒ ‹‘ ƒ† ‹–• •—„•‹†‹ƒ”‹‡• ‹ˆ ƒ ‘—–‡”’ƒ”–› ‹ ƒ ƒ”‹‡•™‹ŽŽ‘–„‡ƒ„Ž‡–‘‡‡–ƒŽŽ ƒ•Š‘—–ˆŽ‘™ •ŠˆŽ‘™•‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ ƒ –‘”•Ǣ •–”—‡–•Ǥ Š‡ ‡› ”‹•• ”‡Žƒ–‡† –‘ ˆ‹ƒ ‹ƒŽ ‘˜‡Ǥ ‹˜‡–Š‡ƒ–—”‡‘ˆ–Š‡•‡ ƒŽ —Žƒ–‹‘•ǡ–Š‡ ‡–‡ƒ”‹‰•™‹ŽŽ„‡ƒ•‹†‹ ƒ–‡†Ǥ ‰—‹†‡Ž‹‡•ƒ†’”‘ ‡†—”‡•†‡•‹‰‡†–‘‹†‡–‹ˆ›ǡ •‹–‹˜‹–‹‡•ƒ†”‹•‡š’‘•—”‡‡ƒ•—”‡•ˆ‘” ‡”–ƒ‹ ‹”‡ –‹‘ƒŽ‡•–‹ƒ–‡•‘ˆ–Š‡—†‡”Ž›‹‰•‡•‹–‹˜‹–‹‡• ‡•–”ƒ–‡Ž‡˜‡Ž•’”‘Œ‡ –‡†ƒ†ƒ”‡–’”‹ ‡•ƒ•ƒ––Š‡ ‡•‡‡•–‹ƒ–‡•ˆ‘”ƒ˜ƒ”‹‡–›‘ˆ”‡ƒ•‘•ǡ‹ Ž—†‹‰ǣ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ‡ –‹˜‡–ƒš”ƒ–‡•ƒ†‘–Š‡”ƒ”‡–ˆ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER MANAGEMENT 9  4 A

d d n i . 1 RISK v _ 5  0 - 1 1 - „‡ ƒ—•‡‘ˆ Šƒ‰‡•‹ƒ”‡–‹–‡”‡•–”ƒ–‡•Ǥ —””‡ › ”‹• ”‡Žƒ–‡• –‘ –Š‡ ‘”’‘”ƒ–‹‘ǡ ‹–• •—„•‹†‹ƒ”‹‡• ƒ† ƒ••‘ ‹ƒ–‡•‘’‡”ƒ–‹‰‹†‹ˆˆ‡”‡– —””‡ ‹‡•ƒ† ‘˜‡”–‹‰‘ –‹‡ƒ–†‹ˆˆ‡”‡–ˆ‘”‡‹‰‡š Šƒ‰‡Ž‡˜‡Ž•™Š‡ƒ†˜‡”•‡ Šƒ‰‡• “—‹–›’”‹ ‡”‹•‹•–Š‡— ‡”–ƒ‹–›ƒ••‘ ‹ƒ–‡†™‹–Š–Š‡˜ƒŽ—ƒ– ƒ”‡–•Ǥ –‡”‡•–”ƒ–‡”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘ˆˆ—–—”‡ ƒ 11 6  1 0 2

_ ‹–‡”ƒ –‹‘•ƒ‘‰–Š‡•‡ˆƒ –‘”•ƒ†ƒ••—’–‹‘•™Š‡‘”‡–Šƒ –Š‡‰‡‡”ƒŽŽ‹‹–ƒ–‹‘•‘ˆ‹–‡”ƒŽ‘†‡Ž•Ǥ ƒ••‡••‡–‘ˆ–Š‡ ‹” —•–ƒ ‡•–Šƒ–Ž‡†–‘–Š‡• ‡ƒ”‹‘ƒ›Ž‡ ƒ†‹–‡”‡•–”ƒ–‡• ‡ƒ”‹‘• ‘•‹†‡”‡†Ǣ Šƒ‰‡•‹ƒ –—ƒ”‹ƒŽǡ‹˜‡•–‡–”‡–—”ƒ†ˆ—–—”‡‹˜‡•–‡–ƒ ƒ –—ƒŽ‡š’‡”‹‡ ‡†‹ˆˆ‡”‹‰ˆ”‘–Š‡ƒ••—’–‹‘•Ǣ Šƒ‰‡•‹„—•‹‡••‹šǡ‡ˆˆ ”‡†‹–”‹•‹•–Š‡’‘–‡–‹ƒŽˆ‘”ˆ‹ƒ ‹ƒŽŽ‘••–‘–Š‡‘”’‘”ƒ– ƒ”‡–”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘”ˆ—–—”‡ ƒ•ŠˆŽ‘™ ‹“—‹†‹–›”‹•‹•–Š‡”‹•–Šƒ––Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ –”ƒ•ƒ –‹‘ˆƒ‹Ž•–‘‡‡–‹–•‘„Ž‹‰ƒ–‹‘•Ǥ ”‡•—Ž–‘ˆ Šƒ‰‡•‹ƒ”‡–ˆƒ –‘”•Ǥƒ”‡–ˆƒ –‘”•‹ Ž—†‡–Š” ”‹•ƒ†‡“—‹–›’”‹ ‡”‹•Ǥ x x ‘„Ž‹‰ƒ–‹‘•ƒ•–Š‡› ‘‡†—‡Ǥ x C C

P _ 1          NOTE Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•Šƒ˜‡‡•–ƒ„Ž‹•Š‡†’‘Ž‹ ‹‡•ǡ ‡ƒ•—”‡ǡ ‘‹–‘” ƒ† ‹–‹‰ƒ–‡ ”‹•• ƒ••‘ ‹ƒ–‡† ™‹–Š ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ”‡Ž‹“—‹†‹–›”‹•ǡ ”‡†‹–”‹•ƒ†ƒ”‡–”‹•Ǥ ‹      ‘”–Š‡•‡”‡ƒ•‘•ǡ–Š‡•‡•‹–‹˜‹–‹‡••Š‘—Ž†‘Ž›„‡˜‹‡™‡†ƒ•† ˆ‘”–Š‡”‡•’‡ –‹˜‡ˆƒ –‘”•„ƒ•‡†‘–Š‡ƒ••—’–‹‘•‘—–Ž‹‡†ƒ„ ‘”’‘”ƒ–‹‘ ƒ‘–’”‘˜‹†‡ƒ••—”ƒ ‡–Šƒ––Š‡ƒ –—ƒŽ‹’ƒ –‘ Š‹•‘–‡–‘–Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‹ Ž—†‡•‡•–‹ƒ–‡•‘ˆ•‡ ”‹••ǡ•— Šƒ•–Š‡•‡•‹–‹˜‹–›†—‡–‘•’‡ ‹ˆ‹  Šƒ‰‡•‹‹–‡” ˜ƒŽ—ƒ–‹‘†ƒ–‡Ǥ –—ƒŽ”‡•—Ž–• ƒ†‹ˆˆ‡”•‹‰‹ˆ‹ ƒ–Ž›ˆ”‘–Š 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A49 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A50 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ ‡“—‹˜ƒŽ‡–•ǡˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ƒ††‡”‹˜ƒ–‹˜‡•Šƒ˜‡‘– ‘™‡”‘”’‘”ƒ–‹‘ƒ†‘™‡” ‹ƒ ‹ƒŽǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡ ‹• ‘˜‡”Ǧ–Š‡Ǧ ‘—–‡”™‹–Š ‘—–‡”’ƒ”–‹‡•–Šƒ–ƒ”‡Š‹‰ŠŽ›”ƒ–‡†ˆ‹ƒ ˆ‹ƒ ‹ƒŽ †‡”‹˜ƒ–‹˜‡ ‘ˆ ”ƒ–‹‰• ”‡†‹– –Š‡  ”‡˜‹‡™ ‘– ”‡‰—Žƒ”Ž› ƒ”‡ ”‡“—‹”‡‡–• ƒ ‘—–‹‰ Š‡†‰‡ •’‡ ‹ˆ‹  ‹ˆ ‡˜‡ Š‡†‰‡• ƒ†‘™‡” ‹ƒ ‹ƒŽƒ†ƒ”‡‘‹–‘”‡†„›–Š‡‘”’‘”ƒ–‹‘ƒ†‘ ‡”‹˜ƒ–‹˜‡• ‘–‹—‡–‘„‡—•‡†‘ƒ„ƒ•‹• ‘•‹•–‡–™‹–Š–Š‡ ƒ†Š‡”‹ „› •‡ —”‹–‹‡• ‹ ‘‡ ˆ‹š‡† –Š‡‹” ” ‘ ”‡†‹– ”‹• –‘ ”‡†‹– •—„Œ‡ – ‹–‹‰ƒ–‡ ƒ”‡ †‡”‹˜ƒ–‹˜‡• ƒ† •‡ —”‹–‹‡• ‹ ‘‡ ‹š‡† Credit  Ž‹“—‹†‹–› ‘ˆ ƒƒ‰‡‡– ‹ƒ ‹ƒŽǯ• ‘™‡” ƒ† ‘”’‘”ƒ–‹‘ ‘™‡” „—•‹‡••’‡”ˆ‘”ƒ ‡‘ˆ‘™‡”‘”’‘”ƒ–‹‘ǡ‘™‡” ‹ƒ ‹ƒŽƒ† ƒ””ƒ‰‡ƒ††‹–‹‘ƒŽˆ‹ƒ ‹‰‹–Š‡ˆ—–—”‡™‹ŽŽ†‡’‡†‹’ƒ”– †‹˜‹†‡†•ˆ‘”ƒ”‡ƒ•‘ƒ„Ž‡’‡”‹‘†‘ˆ–‹‡Ǥ ˆ”‡“—‹”‡†ǡ–Š‡ƒ„‹ Ž‹ –Š‡‹” ”‡˜‹‡™ ”‡‰—Žƒ”Ž› ‹ƒ ‹ƒŽ ‘™‡” ƒ† ‘”’‘”ƒ–‹‘ ‘™‡” ‹ƒ ‘™‡” †‹˜‹†‡†•‹•†‡’‡†‡–—’‘”‡ ‡‹’–‘ˆ†‹˜‹†‡†•ˆ”‘–Š‡‹”‘™ ‘ˆ ƒ„‹Ž‹–› Š‡ ‘”’‘”ƒ–‹‘ȋ‹ˆ‡ ‘ǡ ƒ†ƒ”Œ‘‹– ‘Ȍǡ™Š‹ Šƒ”‡ƒŽ•‘Š‘Ž†‹ ˆŽ‘™•Ǥ ƒ•Š ‘”’‘”ƒ–‡ ‘”’‘”ƒ–‹‘ǯ•    ˆ ” ‘ –ƒš‡•ƒ†’ƒ›‡–‘ˆ†‹˜‹†‡†•–‘‹–•’ƒ”–‹ ‹’ƒ–‹‰ƒ†‘Ǧ’ƒ”  ‘ ™”‡ ‡‹˜‡†ˆ”‘‹–••—„•‹†‹ƒ”‹‡•ǡƒ†‹ ‘‡ˆ”‘‹˜‡•–‡–•ǡŽ‡ ‡ ”  ‘™‡”‘”’‘”ƒ–‹‘‹•ƒŠ‘Ž†‹‰ ‘’ƒ›Ǥ••— Šǡ ‘”’‘”ƒ–‡ ƒ•Š ‹  ƒLiquidity  ‹ ƒ Ž ǡ„—–‡š Ž—†‡•‹ˆ‘”ƒ–‹‘”‡Žƒ–‡†–‘‹ˆ‡ ‘ƒ† ǡ™Š‹ Šƒ”‡† ™ Š ‹ ˆ‘”ƒ–‹‘”‡Žƒ–‡†–‘”‹•‹–Š‹••‡ –‹‘”‡Žƒ–‡•–‘‘™‡”‘ Š ‹POWER • ƒ Ž • ‘NOTE ƒ Š ‘ Ž † ‹  ‰  ‘  ’ ƒ  › ǡ ” ‡ ’ ” ‡ • ‡  ‘’”–‘ƒ† ‘‡ ‹Ž ‡—ƒŽ”˜‡–‡ ”†– ”ƒ– ”‡†‹– –Š‡ ‡š’‘•—”‡–‘ ”‡†‹–”‹•‘–Š‡•‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•‹•–Š‡‹” ”‡˜‹‡™ ”‡‰—Žƒ”Ž› ‹ƒ ‹ƒŽ ‘™‡” ‘”’‘” ƒ† –Š‡ ‘”’‘”ƒ–‹‘ ™Š‡”‡ Œ—”‹•†‹ –‹‘• ƒƒ† ‹ –Š‡ „ƒ• ™‹–Š „›ǡ †‡’‘•‹–• ‰—ƒ”ƒ–‡‡† –‡’‘”ƒ”› ‘” ‘ˆǡ •‡ —”‹–‹‡• •Š‘”–Ǧ–‡” ƒ† „‘†• †‡’‘•‹– –‡’‘”ƒ”› Ž‹“—‹† Š‹‰ŠŽ› ƒ† ƒ ‡’–ƒ ‡• „ƒ‡”•ǯ „‘†•ǡ ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ǡ™Š‹ Šƒ”‡‹ Ž—†‡†‹‹˜‡•–‡–•ƒ† Ž‹‹–•Ǥ ‰—‹†‡Ž‹‡•™Š‹ Š’”‘˜‹†‡‡š’‘•—”‡Ž‹‹–•„›†‡ˆ‹‹‰ƒ†‹••‹„Ž‡ ‡ ‡„‡”͵ͳǡʹͲͳͷǤ •—ˆˆ‹ ‹‡–Ž‡˜‡Ž•‘ˆŽ‹“—‹†‹–‹‡•–‘‡‡––Š‡‹”‘’‡”ƒ–‹‰‡š’‡• E n g 0 1 _ A P C  risk C  50  _ 11 CORPORATION, 2  0 risk POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6   - 1 1 - RISK  0 5 _ v 1 . i n d d 

MANAGEMENT

A 5 0  POWER  FINANCIAL  ȋ ‘–‹—‡†Ȍ  AND  OTHER   SUBSIDIARIES ‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ƒ†’ƒ›‡–‘ˆ’”‡ˆ‡””‡†•Šƒ”‡  ƒ””›‹‰˜ƒŽ—‡Ǥ Šƒ‰‡†ƒ–‡”‹ƒŽŽ›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ ”’‘”ƒ–‹‘ǡ‘™‡” ‹ƒ ‹ƒŽƒ†‘–Š‡”•—„•‹†‹ƒ”‹‡•ǡ ”‹•ƒƒ‰‡‡–‰—‹†‡Ž‹‡•‘ˆ‘™‡”‘”’‘”ƒ–‹‘  ‹ƒŽ‹•–‹–—–‹‘•Ǥ Ž‹–›‘ˆ‘™‡”‘”’‘”ƒ–‹‘ƒ†‘™‡” ‹ƒ ‹ƒŽ–‘ ” —–”ƒ–‡Ǥ ‡‹ƒ‹‡ ‘–ƒ–ƒ”‡ ‘–”ƒ –• ‡”‹˜ƒ–‹˜‡ ‘—–‡”’ƒ”–‹‡•Ǥ –”—‡– ‹• —••‡†ˆ—”–Š‡”‹–Š‹•‘–‡Ǥ —’‘’”‡˜ƒ‹Ž‹‰ƒ”‡– ‘†‹–‹‘•ƒ•™‡ŽŽƒ•–Š‡ ••‘’‡”ƒ–‹‰‡š’‡•‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ǡ‹ ‘‡ ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ ‘•‹•–’”‹ƒ”‹Ž›‘ˆ •—„•‹†‹ƒ”‹‡•Ǥ ‰ ‘’ƒ‹‡•ǡ–‘‡‡––Š‡‹”‘„Ž‹‰ƒ–‹‘•ƒ†’ƒ› –‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”•ǤŠ‡†‹˜‹†‡†•”‡ ‡‹˜‡† •‡ —”‹–‹‡•ǡ‹‹—”ƒ–‹‰ƒ† ‘ ‡–”ƒ–‹‘ –Š‡‹”•—„•‹†‹ƒ”‹‡•Ǥ •Ǥ ‘‡”‘ƒ‹ ™” ‹ƒ ‹ƒŽ ‘™‡” ƒ† ‘”’‘”ƒ–‹‘ ‘™‡” ‹•Ǥ  ‰ – ‘ ƒ  ‹  ˜ ‡ • –  ‡  – ’ ‘ Ž ‹ › – Š ƒ – ‡ • – ƒ „ Ž ‹ • Š ‡ •  ™–†ƒ ƒ–”† ƒƒ™Žƒ• ™‡ŽŽ ƒ• „ƒ• Šƒ”–‡”‡† ƒƒ†‹ƒ ™‹–Š • • ˆ Š‹ —–”ƒ–‡Ǥ Šƒš‹— Š‡ ‘—–‡”’ƒ”–‹‡•Ǥ –Š‡‹” ‘ˆ ‹‰• ˆŽ‘™•ƒ”‡’”‹ ‹’ƒŽŽ›ƒ†‡—’‘ˆ†‹˜‹†‡†• –™” ‘’”–‘ƒ† ‘‡ ‹ƒ ‹ƒŽ ‘™‡” ƒ† ‘”’‘”ƒ–‹‘ ‘™‡” ‡–Ǥ —†–”“‹‡‡–ƒ† ‡ ‘ ƒ‹–ƒ‹ –‘ •‡‡ ƒ† ”‡“—‹”‡‡–• “—‹†‹–› ™‡” ‹ƒ ‹ƒŽˆ‘”‡ˆˆ‡ –‹˜‡‡••ƒ•‡ ‘‘‹  ƒ‘‰˜”• Š‰ŽŽ‹“—‹† Š‹‰ŠŽ› ƒ† ‰‘˜‡”‡–• ǤǤ ‘” ‹ƒ –‘ƒ† ‘‡ ‹Ž ’”–Ǥ ‘™‡” ‘’‡”ƒ–‡Ǥ ‹ƒ ‹ƒŽ ‘™‡” ƒ† ƒ–‹‘ ‡–‘ˆ ”‡†‹–”‹•”‡Žƒ–‡†–‘ ƒ•Šƒ† ƒ•Š ƒǯ•„‹‹”‡ƒ† ‘Ž ‘–”‘ŽŽ‡† Œ‘‹–Ž› ƒ† •—„•‹†‹ƒ”‹‡• ‹ƒŽǯ• ‹ ƒ– Š‡–”ƒŽ•‹ ‡ ƒ–‡”‹ƒŽŽ› Šƒ‰‡† ‘– Šƒ• ”‹•   ƒ ‹ˆ  ‘‡– ˆ ‘™‡” ‘ˆ ‘’‘‡– •‹‰‹ˆ‹ ƒ– ƒ – 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 51 A ”†‡† ‹˜‡•–‡– ‹’ƒ‹”‡– Šƒ”‰‡• ‹”‡– Šƒ”‰‡ ‘ˆ ̀ͳǡͶͶ͵‹ŽŽ‹‘ ‘ ‹–• –‡ ˜ƒ”‹ƒ–‹‘•ǡ ƒ”‡ ”‡ ‘”†‡† ‹ ‘–Š‡”  ‹ƒŽǯ• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ƒ†ˆ‹š‡† ”‡ƒŽ‹œ‡† Ž‘•• ™Š‹ Š ™‘—Ž† „‡ ”‡ ‘”†‡† ‹ Ǥ ƒ”‰‡•ƒ ‹–•‡Žˆ ‹• ‡š’‘•‡† –‘ —””‡ › ”‹• –‹Ž”‡ƒŽ‹œ‡†ǤŠ‡•‡‹˜‡•–‡–•ƒ”‡”‡˜‹‡™‡† ”‡• †‘ ‘– Šƒ˜‡ ‡š’‘•—”‡ –‘ —””‡ › ”‹•Ǥ ‡” ‘’”‡Š‡•‹˜‡ ‹ ‘‡ ‘ˆ ƒ’’”‘š‹ƒ–‡Ž› † ‹ ‘‡ •‡ —”‹–‹‡•ǡ ‘™‡” ‘”’‘”ƒ–‹‘ ƒ† ‹ ‘‡—–‹Ž”‡ƒŽ‹œ‡†Ǥ–Š‡”‹˜‡•–‡–•ƒ”‡ —””‡ ‹‡•ƒ†–Š—•„‡‡š’‘•‡†–‘ˆŽ— –—ƒ–‹‘• •–”—‡–• ‹ ˆ‘”‡‹‰ —””‡ ‹‡•Ǥ ”‡ƒŽ‹œ‡† ‹’ƒ – ‘ˆ ƒ ͷΨ †‡ ”‡ƒ•‡ ‹ ˆ‘”‡‹‰ ‡š Šƒ‰‡ ‘‘–Šƒ˜‡•‹‰‹ˆ‹ ƒ–‡š’‘•—”‡–‘‹–‡”‡•–”ƒ–‡ ‰‡”‹•ƒ•ƒ”‡•—Ž–‘ˆƒ”Œ‘‹– ‘ǯ•‹˜‡•–‡–‹ Š‹‰ŠŽ›”ƒ–‡†ˆ‹ƒ ‹ƒŽ‹•–‹–—–‹‘•Ǥ•ƒ–ƒ” Š ”‹–‹‡•ǡ‹˜‡•–‡–ˆ—†•ƒ†Š‡†‰‡ˆ—†•Ȍƒ† ”‡ ‘’”‹•‡†‘ˆ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡˆ‹š‡† ˆƒ‹’ƒ‹”‡–‹˜ƒŽ—‡Ǥ ‘”–Š‡–Š”‡‡‘–Š• ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǣƒ••— Šǡ—”‡ƒŽ‹œ‡†‰ƒ‹•ƒ† ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǥ••— Šǡ—”‡ƒŽ‹œ‡†‰ƒ‹•ƒ† •ǡ ‘™‡” ‘”’‘”ƒ–‹‘ ƒ† ‘™‡” ‹ƒ ‹ƒŽ ƒ› ‡š Šƒ‰‡”ƒ–‡˜ƒ”‹ƒ–‹‘•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” Š‡‹’ƒ –‘ˆƒͷΨ†‡ ”‡ƒ•‡‹–Š‡˜ƒŽ—‡‘ˆ‘–Š‡” ˜‹†‡ ‡‘ˆƒ‹’ƒ‹”‡–‹˜ƒŽ—‡Ǥ ‘”‡‹‰ —””‡ ›–”ƒ•Žƒ–‹‘‰ƒ‹•ƒ†Ž‘••‡•ˆ”‘ ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǣ—”‡ƒŽ‹œ‡†‰ƒ‹•ƒ†Ž‘••‡•‘ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ȋ ‘–‹—‡†Ȍ  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER   MANAGEMENT 1  5 A 

risk

risk

  d d n i . risk 1  RISK v rate _   5 price  0  - 1 1 - 11 risk 6   1 0 2 _ Equity Interest Currency C C

P _ 1 ‘•–‘ˆ‘™‡”‘”’‘”ƒ–‹‘ǯ•‘–Š‡”‹˜‡•–‡–•ƒ”‡ Žƒ••‹ˆ‹‡†ƒ• Ž‘••‡•‘–Š‡•‡‹˜‡•–‡–•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡ ”‡˜‹‡™‡†’‡”‹‘†‹ ƒŽŽ›–‘†‡–‡”‹‡™Š‡–Š‡”–Š‡”‡‹•‘„Œ‡ –‹˜‡‡ ‘” –Š‡ –Š”‡‡ ‘–Š•ƒ‘—–‹‰–‘̈́Ͷ͹‹ŽŽ‹‘ȋ‹Ž‹ʹͲͳͷȌǤ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ– ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ‹˜‡•–‡–• –Š‡ ™‘—Ž† Šƒ˜‡ ‘”’‘”ƒ–‹‘ ”‡•—Ž–‡† ‹ ”‡ ‘ ƒ ƒ’’”‘š‹ƒ–‡ ̈́ͺͺ‹ŽŽ‹‘ — ”‹•Ǥ c) ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ ƒ”‰‡•ƒ‹†‹”‡ –Ž›Š‘Ž†••—„•–ƒ–‹ƒŽ‹˜‡•–‡–• Žƒ••‹ˆ‹‡†ƒ• –Š‡•‡‹˜‡•–‡–•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡— ’‡”‹‘†‹ ƒŽŽ›–‘†‡–‡”‹‡™Š‡–Š‡”–Š‡”‡‹•‘„Œ‡ –‹˜‡‡˜‹†‡ ‡‘ ‘™‡”‘”’‘”ƒ–‹‘ƒ†‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•† ‹˜‡•–‡–‹ƒˆƒ”‰‡ ‘Ž ‹–†ȋ‘–‡ͷȌǤ ‘™‡” ‹ƒ ‹ƒŽƒ›Š‘Ž† ƒ•Š„ƒŽƒ ‡•†‡‘‹ƒ–‡†‹ˆ‘”‡‹‰ ‹‡š Šƒ‰‡”ƒ–‡•Ǥ ‘”†‡”–‘’”‘–‡ –ƒ‰ƒ‹•–•— ŠˆŽ— –—ƒ–‹‘ ˆ”‘–‹‡–‘–‹‡‡–‡”‹–‘ —””‡ ›ǦŠ‡†‰‹‰–”ƒ•ƒ –‹‘•™‹–Š ͵ͳǡʹͲͳ͸ǡƒ’’”‘š‹ƒ–‡Ž›͸ͶΨ‘ˆ‘™‡”‘”’‘”ƒ–‹‘ƒ†‘™‡” ‹ƒ ‹ ‘‡•‡ —”‹–‹‡•™‡”‡†‡‘‹ƒ–‡†‹ƒƒ†‹ƒ†‘ŽŽƒ”•Ǥ ‘•–‘ˆ‘™‡”‘”’‘”ƒ–‹‘ǯ•‘–Š‡”‹˜‡•–‡–•ƒ”‡ Žƒ••‹ˆ‹‡†ƒ• Ž‘••‡• ‘ –Š‡•‡ ‘’”‡Š‡•‹˜‡ ‹ ‘‡ ‹˜‡•–‡–•ǡ —–‹Ž ”‡ƒŽ‹œ‡†Ǥ • ”‡•—Ž–‹‰ ƒ– ƒ” Š͵ͳǡʹͲͳ͸ǡ –Š‡ ˆ”‘”ƒ–‡• ™‘—Ž† ˆ‘”‡‹‰ Šƒ˜‡ ”‡•—Ž–‡† ‡š Šƒ‰‡ ‹ ƒ —”‡ƒŽ‹œ‡† ”ƒ ̈́ͳͲͲ‹ŽŽ‹‘Ǥ Ž‘•• ‘™‡” ‘”’‘”ƒ–‹‘ǯ• ”‡ ‘”†‡† ƒ† ‹ ‘™‡” ‘–Š ‹ƒ ‹ƒŽǯ• †‡„‡–— ‘–”‘ŽŽ‡† ’‘”–ˆ‘Ž‹‘ ‹˜‡•–‡–• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ Šƒ˜‡‰ƒ‹•‘”Ž‘••‡•‘–Š‡•‡†‡„–‹•–”—‡–•”‡•—Ž–‹‰ˆ”‘ˆ‘”‡‹‰ †‡„– ‹ ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ ‘™‡” ‹ƒ ‹ƒŽ‹•‡š’‘•‡†–Š”‘—‰Šƒ”Œ‘‹– ‘–‘ˆ‘”‡‹‰‡š Šƒ ƒ”‰‡•ƒǡ ƒ ‘’ƒ› ™Š‘•‡ ˆ— –‹‘ƒŽ —””‡ › ‹•–Š”‘—‰Š‹–••—„•‹†‹ƒ”›™Š‘•‡ˆ— –‹‘ƒŽ —””‡ ›‹•–Š‡‡—”‘Ǥ –Š‡ ™‹•• ˆ”ƒ ƒ”‰‡•ƒƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ b) ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ”‘—’‡ ”—š‡ŽŽ‡• ƒ„‡”– ”‡ ‘”†‡† ƒ ‹’ƒ  ƒƒ‰‹‰ –Š‡‹” ‘™ ƒ•Š ƒ† ƒ•Š ‡“—‹˜ƒŽ‡–• ƒ• ™‡ŽŽ ƒ• ˆ‹š‡  NOTE Market ‘™‡”‘”’‘”ƒ–‹‘ƒ†‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ ‹ ‘‡ •‡ —”‹–‹‡•ǡ ‘–Š‡” ‹˜‡•–‡–• ȋ ‘•‹•–‹‰ ‘ˆ ‡“—‹–› •‡ — †‡„‡–—”‡•Ǥ a)     0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A51 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A52 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _   a) Market – •‹‹Žƒ”‹†—•–”‹‡•Ǥ‘•‹‰‹ˆ‹ ƒ– Šƒ‰‡•Šƒ˜‡‘ —””‡†ˆ”‘– –Šƒ– ‹ Šƒ”ƒ –‡”‹•–‹ • ”‹• ”‡†‹– •‹‹Žƒ” Šƒ˜‡ –Šƒ– †‡„–‘”• •‹‰Ž‡ ƒ –‘ ‡š’‘•—”‡• ˆ”‘ ƒ”‹•‡ ”‹• ”‡†‹– ‘ˆ ‘ ‡–”ƒ–‹‘• Credit      Š‡ˆ‘ŽŽ‘™‹‰’‘Ž‹ ‹‡•ƒ†’”‘ ‡†—”‡•ƒ”‡‹’Žƒ ‡–‘ƒƒ‰‡Ž‹ Liquidity ƒ’’”‘ƒ Š–‘”‹•ƒƒ‰‡‡–Šƒ•‘– Šƒ‰‡†•‹‰‹ˆ‹ ƒ–Ž›•‹ ‡ Š‡”‹• ‘‹––‡‡‘ˆ–Š‡„‘ƒ”†‘ˆ†‹”‡ –‘”•‘ˆ‹ˆ‡ ‘‹•”‡•’‘ LIFECO NOTE   ’”‡•‡–‡†„‡Ž‘™ǣ ’– ƒ‡‹’ • ‹‡‘• ‘ƒ‡—–Ǥ ‘”•‘†Žǡ ‹ˆ‡ ‘””‡•’‘†‹‰Ž›ǡ ‡“—‹–›Ǥ ‘‹–‘”‡†„›”ƒ–‹‰ƒ‰‡ ‹‡•ƒ”‡ƒŽ•‘‹’ƒ –‡†Ǥ –‘–ƒŽ ‹ˆ‡ ‘ǯ• ‹’ƒ –• ”ƒ–‡• •’‘– –”‡‰–Š‡‹‰‘”™‡ƒ‡‹‰‘ˆ–Š‡ƒƒ†‹ƒ†‘ŽŽƒ”•’‘–”ƒ–‡ ‘ˆ‘”‡‹‰‘’‡”ƒ–‹‘•ǡ‡–‘ˆ”‡Žƒ–‡†Š‡†‰‹‰ƒ –‹˜‹–‹‡•ƒ†–ƒš‡ ƒƒ†‹ƒ†‘ŽŽƒ”•Ǥ ƒ ‘”†ƒ ‡™‹–Š ǡˆ‘”‡‹‰ —””‡ ›–”ƒ ‹ˆ‡ ‘Šƒ•‡–‹˜‡•–‡–•‹ˆ‘”‡‹‰‘’‡”ƒ–‹‘•Ǥ ƒ††‹–‹‘ǡ ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ–‡• ƒ‡š’‘•‡‹ˆ‡ ‘–‘–Š‡”‹•‘ˆˆ‘”‡‹‰ ‘”–Š‡ƒ••‡–•„ƒ ‹‰‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž E n g

0 1 Šƒ‰‡‹‡–‡ƒ”‹‰•Ǥ ‘Ǧ’ƒ †‡ ”‡ƒ•‡ –‘ ‡š’‡ –‡† ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ†–Š‡‹”•—’’‘”–‹‰ƒ••‡–•„›ƒ’’”‘š‹ƒ–‡ „‡ ™‘—Ž† —””‡ ‹‡• ˆ‘”‡‹‰ ƒ‰ƒ‹•– •ƒ‡ƒ‘—–ǡ”‡•—Ž–‹‰‹ƒ‹ƒ–‡”‹ƒŽ Šƒ‰‡–‘‡–‡ƒ”‹‰•Ǥ —””‡ ‹ ˆ‘”‡‹‰ ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ† ƒ‰ƒ‹•– †‘ŽŽƒ” ƒƒ†‹ƒ –Š‡ ‘ˆ ™‡ƒ‡‹‰ ͳͲΨ  Ž‹‡•‘ˆ ”‡†‹–‘”˜‹ƒ ƒ’‹–ƒŽƒ”‡––”ƒ•ƒ –‹‘•Ǥ‹ˆ‡ ‘ƒ‹ ‘’’‘•‹–‡Ž‹“—‹†‹–›”‡“—‹”‡‡–•ƒ––Š‡Š‘Ž†‹‰ ‘’ƒ›Ǥ††‹–‹‘ ƒ  ƒ ‰‡ƒ”‡†ƒ†”‡“—‹”‡†›‹‡Ž†•ǡ–‘‡•—”‡ ‘•‹•–‡ ›„‡–™‡‡’‘Ž‹ ‡  ‡  –‹ˆ‡ ‘ Ž‘•‡Ž›ƒƒ‰‡•‘’‡”ƒ–‹‰Ž‹“—‹†‹ ‘ ˆ  ‹ ˆ ‡ ‘  Ž ‘ • ‡ Ž ›  ‘  ‹ – ‘ ” • – Š ‡ • ‘ Ž ˜ ‡  › ƒ  †  ƒ ’ ‹ – ƒ Ž  Currency Šƒ”–‡”‡†„ƒ•Ǥ _ A P C  risk C   52  _ risk 11 2  0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 risk 1 6   -  1 1 - RISK   0 risk 5 _ v 1 . i n  d d 

MANAGEMENT

A 5 2  ȋ ‘–‹—‡†Ȍ –›–Š”‘—‰Š ƒ•ŠˆŽ‘™ƒ  ˆˆ‡ –•ǡƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ ‹ˆ‡ ‘ǯ•†‡„–‘„Ž‹‰ƒ–‹‘•ƒ”‡ƒ‹Ž›†‡‘‹ƒ–‡†‹ •‹„Ž‡ˆ‘”–Š‡‘˜‡”•‹‰Š–‘ˆ‹ˆ‡ ‘ǯ•‡›”‹••Ǥ‹ˆ‡ ‘ǯ• Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ ‡‘‡ƒ‡  Š•‰‘”’‹”‰‘‘‹ ‘” ”‡‰‹‘ ‰‡‘‰”ƒ’Š‹  •ƒ‡ –Š‡ ‹ ‘’‡”ƒ–‡ Š‡› “—‹†‹–›”‹•ǣ ‹–‹‡•–Šƒ–ƒ”‡‘–ƒ– Š‡†„› —””‡ ›ǡ Šƒ‰‡•‹ ‡š Šƒ‰‡Ž‘••‡•‘–‘ˆˆ•‡–„›Ž‹ƒ„‹Ž‹–›†‡ ”‡ƒ•‡•Ǥ •Žƒ–‹‘‰ƒ‹•ƒ†Ž‘••‡•ˆ”‘‡–‹˜‡•–‡–•‹ ‡–”ƒ ”—‘”Ž–† ‡–”‘‰‘’‘ˆ ‰”‘—’• ‘” †‡„–‘”• ”‡Žƒ–‡† ‘ˆ ‰”‘—’ ƒ †‡„–‘”ǡ ‘• ‘ ƒ—’” Š”ƒ† ƒ‹ƒ”ƒ–‹‘• ƒ’‹–ƒŽ ƒ† •Šƒ”‡ ’‡” ˜ƒŽ—‡ „‘‘ ‘ǯ• ’ƒ”‡†–‘–Š‡ǤǤ†‘ŽŽƒ”ǡ”‹–‹•Š’‘—†ƒ†‡—”‘ ‡ ‡„‡”͵ͳǡʹͲͳͷǤ•—ƒ”›‘ˆ–Š‡”‹••‹• Ž›–Š‡•ƒ‡ƒ‘—–ǡ”‡•—Ž–‹‰‹ƒ‹ƒ–‡”‹ƒŽ –ƒ‹• ‘‹––‡†Ž‹‡•‘ˆ ”‡†‹–™‹–Šƒƒ†‹ƒ –Š‡‹”•—’’‘”–‹‰ƒ••‡–•„›ƒ’’”‘š‹ƒ–‡Ž›–Š‡ – Š‹‰‘ˆƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡ ›Š‘Ž†‡””‡“—‹”‡‡–•ƒ†–Š‡›‹‡Ž†‘ˆƒ••‡–•Ǥ ͳͲΨ•–”‡‰–Š‡‹‰‘ˆ–Š‡ƒƒ†‹ƒ†‘ŽŽƒ” ƒŽŽ‹“—‹†‹–›‹•ƒ˜ƒ‹Žƒ • ‘Ž„‡’ ‡–‹ ‡•‘Ǧ ‹ ”‡ƒ•‡ –‘ ‡š’‡ –‡† „‡ ™‘—Ž† ‡• ’‘•‹–‹‘•‘ˆ‹–•’”‹ ‹’ƒŽ•—„•‹†‹ƒ”‹‡• – ’–‹•”‡ ‹˜‡•–‡– ƒ† ‹•—”ƒ ‡ ”–‹ ‹’ƒ–‹‰ „Ž‡–Š”‘—‰Š‡•–ƒ„Ž‹•Š‡† •ƒ†ˆ‘”‡ ƒ•–‹‰ 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 53 A ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ  ”˜‡‘–Š‡’”‡• ”‹„‡†• ‡ƒ”‹‘•™‘—Ž†‘– ”˜‡ ‘ –Š‡ ’”‡• ”‹„‡† • ‡ƒ”‹‘• ™‘—Ž† ‘– ””‡Žƒ–‹‘ –‘‰‡–Š‡” ™‹–Š ƒ”‰‹• ˆ‘” ƒ†˜‡”•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ †‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ†‡ ”‡ƒ•‡ ‡ͳΨ’ƒ”ƒŽŽ‡Ž•Š‹ˆ–‹–Š‡›‹‡Ž† —”˜‡™‘—Ž†‘–  Šƒ˜‡ „‡‡ ƒ†‡ ”‡‰ƒ”†‹‰ ”ƒ–‡• ‘ˆ ”‡–—”• ‘ ƒ–‹‘ ƒ••—’–‹‘• —•‡ „‡•– ‡•–‹ƒ–‡• ‘ˆ ˆ—–—”‡  •–‹–—–‡‘ˆ –—ƒ”‹‡•Ǧ’”‡• ”‹„‡†• ‡ƒ”‹‘•Ǥ ‹–‡”‡•–”ƒ–‡•ƒ–„‘–Š–Š‡Ž‘™ƒ†Š‹‰Š‡†‘ˆ–Š‡ –Š‹•ƒ••—’–‹‘‹•–‘†‡–‡”‹‡–Š‡‡ˆˆ‡ –‘–Š‡ —– ‘‡•Ǥ ƒ”‰‹• ƒ”‡ ”‡˜‹‡™‡† ’‡”‹‘†‹ ƒŽŽ› ˆ‘” ƒ”‰‹•ƒ”‡‡ ‡••ƒ”›–‘’”‘˜‹†‡ˆ‘”’‘••‹„‹Ž‹–‹‡• –‡ƒ••—’–‹‘•ƒ†’”‘˜‹†‡”‡ƒ•‘ƒ„Ž‡ƒ••—”ƒ ‡ ‡—•‡†‹–Š‡ƒƒ†‹ƒ••‡–‹ƒ„‹Ž‹–›‡–Š‘†–‘ ”‡ƒ•‹‰ǡ†‡ ”‡ƒ•‹‰ƒ†ˆŽ— –—ƒ–‹‰”ƒ–‡•Ȍ‹•†‘‡ ”‡Š‘Ž†‡”•ǯ‡–‡ƒ”‹‰•‘ˆ‹ˆ‡ ‘‘ˆƒͳΨ Šƒ‰‡‹ –‘ˆ–Š‡ƒƒ†‹ƒ •–‹–—–‡‘ˆ –—ƒ”‹‡•Ǧ’”‡• ”‹„‡† –”ƒ–‡•–‘„‡ ‘˜‡”‡†„›–Š‡’”‘˜‹•‹‘•Ǥ ˆ•—•–ƒ‹‡† ‹ ‘•‹†‡”ƒ–‹‘‘ˆŽ‘‰Ǧ–‡”Š‹•–‘”‹ ƒŽ”‡•—Ž–•ƒ† ƒ–‡•‹••—ˆˆ‹ ‹‡––‘ ‘˜‡”ƒ„”‘ƒ†‡”‘”‘”‡•‡˜‡”‡ ƒ”‹‘• ‘˜‡”‡†Ǥ Š‡•‡’”‘˜‹•‹‘•ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ‹–‹‡• ȋͳ͸ͺȌ ͸ͻ͸ ȋͳ͸͵Ȍ ͸ͳͶ ȋ ‘–‹—‡†Ȍ  ˆ”‘–Š‡ —””‡–ƒƒ†‹ƒ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  MANAGEMENT  3  5 A

risk

 d rates d  n i . 1 RISK v rate _  5  0 - 1 1 interest -  11 6  1 in 0  2 _ Interest Š‡ ‡ˆˆ‡ – ‘ˆ ƒ ‹‡†‹ƒ–‡ ͳΨ ’ƒ”ƒŽŽ‡Ž ‹ ”‡ƒ•‡ ‹ –Š‡ ›‹‡Ž† Šƒ‰‡–Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•Ǥ — Š‡‡ˆˆ‡ –‘ˆƒ‹‡†‹ƒ–‡ͳΨ’ƒ”ƒŽŽ‡Ž†‡ ”‡ƒ•‡‹–Š‡›‹‡Ž† — Šƒ‰‡–Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•Ǥ C C

P _ 1 Š‡”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡• ‘˜‡”‡†„›–Š‡•‡’”‘˜‹•‹‘•‹••‡– ‹•‘‹–‘”‡†“—ƒ”–‡”Ž›™‹–Šƒˆ—ŽŽ”‡˜‹‡™ƒ—ƒŽŽ›Ǥ‹‡†‹ƒ– Šƒ˜‡ƒƒ–‡”‹ƒŽ‹’ƒ –‘‹ˆ‡ ‘ǯ•˜‹‡™‘ˆ–Š‡”ƒ‰‡‘ˆ‹–‡”‡• Š‘™‡˜‡”ǡ–Š‡’ƒ”ƒŽŽ‡Ž•Š‹ˆ– ‘—Ž†‹’ƒ –‹ˆ‡ ‘ǯ•”ƒ‰‡‘ˆ• ‡ Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•ƒŽ•‘ ‘•‹†‡”•–Š‡‹’ƒ • ‡ƒ”‹‘•ǣ ”‡‹˜‡•–‡– ”ƒ–‡• ƒ† ‹ˆŽƒ–‹‘ ƒ••—’–‹‘• ™‹–Š ƒ ƒ••—‡† ‘ †‡˜‹ƒ–‹‘•‡–‹ƒ ‘”†ƒ ‡™‹–Š’”‘ˆ‡••‹‘ƒŽ•–ƒ†ƒ”†•ǤŠ‡•‡ ‘ˆ‹•‡•–‹ƒ–‹‘ƒ†Ȁ‘”ˆ—–—”‡†‡–‡”‹‘”ƒ–‹‘‹–Š‡„‡•–‡•–‹ƒ –Šƒ– ‹•—”ƒ ‡ ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡• ‘˜‡” ƒ ”ƒ‰‡ ‘–‹—‡†ƒ’’”‘’”‹ƒ–‡‡••Ǥ ‘ˆ ’‘••‹„Ž‡ ‘ ‡•–‹‰—†‡”ƒ—„‡”‘ˆ‹–‡”‡•–”ƒ–‡• ‡ƒ”‹‘•ȋ‹ Ž—†‹‰‹ –‘ƒ••‡••”‡‹˜‡•–‡–”‹•ǤŠ‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–” •‡–‘ˆ”‹••–Šƒ–Š‡‹‹—ƒ”‹•‹‰ ”‘Œ‡ –‡† ƒ•ŠˆŽ‘™•ˆ”‘–Š‡ —””‡–ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•ƒ” †‡–‡”‹‡ ‹•—”ƒ ‡ ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡•Ǥ ƒŽ—ƒ–‹‘ƒ••—’–‹‘• •—’’‘”–‹‰ ƒ••‡–•ǡ ˆ‹š‡† ‹ ‘‡ǡ ‡“—‹–› ƒ† ‹ˆŽƒ–‹‘Ǥ Š‡ ˜ƒŽ—   Change  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž     NOTE b)     ‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•‹’ƒ –‹‰–Š‡•Šƒ ‹ˆ‡ ‘ǯ•˜‹‡™‘ˆ–Š‡”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡•–‘„‡ ‘˜‡”‡†„›– ‘–Š‡‡ˆˆ‡ –‘ˆƒ‹‡†‹ƒ–‡ͳΨ‹ ”‡ƒ•‡‘”ͳΨ†‡ ”‡ƒ•‡‹–Š‡ ”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡•”‡ ‘‰‹œ‡†‹–Š‡’”‘˜‹•‹‘•ǣ ‘–Š‡”™ƒ›‘ˆ‡ƒ•—”‹‰–Š‡‹–‡”‡•–”ƒ–‡”‹•ƒ••‘ ‹ƒ–‡†™‹–Š  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰• ͳʹͲ ȋͶͻͺȌ ͳͲͻ ȋͶ͵ͲȌ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A53 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A54 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ ‹‡“—‹–›˜ƒŽ—‡•ǣ ˜ƒŽ—‡•ˆŽ— –—ƒ–‡ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘‘–Š‡‡š’ ”ƒ‡ȋ‡”ƒ‡–‡”‹‰ͶʹȋͷȌ ͵ ȋͶͷ͹Ȍ Ͷ͵͵ ȋͶͷ͹Ȍ  Ͷ͵ʹ   ȋͳͲͺȌ    Ͷͷ ǯ•Ž‹“—‹†‹–›ƒƒ‰‡‡–’”ƒ –‹ ‡•‹ Ž—†‡ǣ Liquidity ȋͳͲͷȌ ˆ‹”•– †‹• —••‡ –Š‡ ƒ”‡ ‘ˆ •‹‰‹ˆ‹ ƒ–Ž›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ•—ƒ”›‘ˆ–Š‡”‹••‹ ƒŽ›•‹•  ƒ† ‘ˆ ‹• —••‹‘ ’”‘ ‡†—”‡• ƒƒ‰‡‡–ǯ• ƒ† ‘”’‘”ƒ–‹‘ǯ• ’‘Ž‹ ‹‡• ƒƒ‰‡‡– Ͷ͹ ”‹• Š‡ IGM   ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰•  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ ‘–”ƒ –Ž‹ƒ Change   ‡•–‹ƒ–‡ƒ••—’–‹‘•ǣ ˆŽ‘™•ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘‘–Š‡‡š’‡ –‡†‹’ƒ ‹–Š‡ —””‡–ƒ”‡– ‘—Ž†”‡•—Ž–‹ Šƒ‰‡•–‘–Š‡•‡ƒ••—’–‹ Š‡„‡•–‡•–‹ƒ–‡”‡–—”ƒ••—’–‹‘•ˆ‘”‡“—‹–‹‡•ƒ”‡’”‹ƒ”‹Ž›    ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰•  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ Change   Ž‹ƒ„‹Ž‹–‹‡•™‹ŽŽˆŽ— –—ƒ–‡‹Ž‹‡™‹–Š‡“—‹–›˜ƒŽ—‡•ǤŠ‡”‡™‹ ’”‹˜ƒ–‡‡“—‹–‹‡•ǡˆ‘”‡šƒ’Ž‡ǡ•‡‰”‡‰ƒ–‡†ˆ—†’”‘†— –•ƒ†’”‘ ‘‡‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ”‡•—’’‘”–‡    c) NOTE   ‘–ƒ– ‹„Ž–‡ƒƒ ‘†–‘ƒ–‹‡’ ƒ‹ ˆ ͷ ȋ ͹ͷ ‘ˆ ‡š’‡ –ƒ–‹‘ ‹•—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ–ƒŽ‡˜‡Ž–Šƒ– ‘˜‡”•–Š‡ƒ˜‡”ƒ –ƒ‹Ž ‘†‹–‹‘ƒŽ ƒ ƒ– Ž‹ƒ„‹Ž‹–‹‡• ‘–”ƒ – ‰— ˆ—† •‡‰”‡‰ƒ–‡† ™‹–Š ’‘Ž‹ ‹‡• ‘” †‡”‹˜ƒ–‹˜‡•Ǥ —•‹‰ ”ƒ–‡ ‹–‡”‡•– ‰—ƒ”ƒ–‡‡• ‡‡ˆ‹– ‹–Š†”ƒ™ƒŽ „‡‡ ‹‹— Šƒ˜‡ —ƒ”ƒ–‡‡† ‰—ƒ”ƒ–‡‡• Ž‹ˆ‡–‹‡ ˆ—† •‡‰”‡‰ƒ–‡† ™‹–Š ƒ••‘ ‹ƒ–‡† ”‹•• Š‡ Ž‡ƒ”Ž›†‡ˆ‹‡†Ž‹‹–•–‘‹–‹‰ƒ–‡’”‹ ‡”‹•Ǥ  ‹ ˆ ‡ ‘ Š ƒ • ‹  ˜ ‡ • –  ‡  – ’ ‘ Ž ‹ › ‰ — ‹ † ‡ Ž ‹  ‡ • ‹  ’ Ž ƒ ‡ – Š ƒ – ’ ” ‘ ˜ ‹ † ‡ ˆ E n g ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž

0 1 Equity ˜‡”•‹‰Š–‘ˆŽ‹“—‹†‹–›„›ƒƒ‰‡‡–ƒ†„› ‘‹––‡‡•‘ˆ–Š‡„ ‰‘‹‰‡ˆˆ‘”–•–‘†‹˜‡”•‹ˆ›ƒ†‡š’ƒ†Ž‘‰Ǧ–‡”‘”–‰ƒ‰‡ˆ—† ‡‰—Žƒ”ƒ••‡••‡–‘ˆ ƒ’‹–ƒŽƒ”‡– ‘†‹–‹‘•ƒ† ǯ•ƒ„‹Ž‹ ‡”ˆ‘”‹‰”‡‰—Žƒ” ƒ•Šˆ‘”‡ ƒ•–•ƒ†•–”‡••–‡•–‹‰Ǥ •—”‹‰‡ˆˆ‡ –‹˜‡ ‘–”‘Ž•‘˜‡”Ž‹“—‹†‹–›ƒƒ‰‡‡–’”‘ ‡••‡• ƒ‹–ƒ‹‹‰Ž‹“—‹†ƒ••‡–•ƒ†Ž‹‡•‘ˆ ”‡†‹––‘•ƒ–‹•ˆ›‡ƒ”Ǧ–  _ FINANCIAL A P C   in in C  54 _ 11   2 best equity  0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 risk 1 6   - price 1  1 estimate - RISK  0  5 values _  v 1  . risk i n d d   

MANAGEMENT

return

A  5 4 –‡ȋͷ ͵ȋ͵ ͳ͵ͻ ȋͷ͵Ȍ ͳ͵͹ ȋͷͷȌ ‹–‹‡•  assumptions   ȋ ‘–‹—‡†Ȍ ‹‹‹•ȋ͵Ȍͷ͵ ͷͶ ͷ͹͵ ȋͷ͵ͶȌ ͷ͹͵ ȋͷ͵͵Ȍ „‹Ž‹–‹‡•  ‰‡Ž‘••‹–Š‡™‘”•–ʹͷΨ‘ˆ–Š‡Ž‘••†‹•–”‹„—–‹‘Ǥ ŽŽ„‡ƒ††‹–‹‘ƒŽ‹’ƒ –•‘–Š‡•‡Ž‹ƒ„‹Ž‹–‹‡•ƒ•‡“—‹–› •’”‡•‡–‡†„‡Ž‘™ǣ ‡”Ž‹“—‹†‹–›‡‡†•Ǥ ͷŽ˜Ž ‘Š” ‘†ǡ ‹‡‘ †‡–‡”‹‡• ‹ˆ‡ ‘ ™‘”†•ǡ ‘–Š‡”  Ž‡˜‡ŽǤ ͹ͷȌ ‡ –‡†‹’ƒ –•‘ˆƒͳͲΨ‹ ”‡ƒ•‡‘”ͳͲΨ†‡ ”‡ƒ•‡ ”‡•ˆ ‰”Ž› ‡‡• ‹•—”ƒ ‡ †‡–‡”‹‡• ‰‡‡”ƒŽŽ› ‹ˆ‡ ‘ ƒ”ƒ–‡‡•ǡ „ƒ•‡†‘Ž‘‰Ǧ–‡”Š‹•–‘”‹ ƒŽƒ˜‡”ƒ‰‡•ǤŠƒ‰‡• ‘•ƒ†™‹ŽŽ‹’ƒ –„‘–Šƒ••‡–ƒ†Ž‹ƒ„‹Ž‹–› ƒ•Š †„›‹˜‡•–‡–’”‘’‡”–‹‡•ǡ ‘‘•Šƒ”‡•ƒ† ” ”†‹˜•‹‡—–”‡• ™‹–Š ƒ”‡–• ‡“—‹–› ‹ ‹˜‡•–‡– ’”—†‡– ‘” †— –•™‹–ŠŽ‘‰Ǧ–ƒ‹Ž ƒ•ŠˆŽ‘™•Ǥ ‡‡”ƒŽŽ›–Š‡•‡ Ͳ”ƒ‡ͳΨ† ‡•ͳΨ‹ ‡• ͳͲΨ†‡ ”‡ƒ•‡ ͳͲΨ‹ ”‡ƒ•‡ ͳͲΨ†‡ ”‡ƒ•‡ ͳͲΨ‹ ”‡ƒ•‡ –•‘ˆƒͳΨ‹ ”‡ƒ•‡‘”ͳΨ†‡ ”‡ƒ•‡‹–Š‡„‡•– Ψ‹ ‡• Ψ† ‡•ͳ”ƒ‡ͳΨ†‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ†‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ –›–‘ƒ ‡••„ƒƒ† ƒ’‹–ƒŽƒ”‡–ˆ—†‹‰Ǥ Ǥ ‹‰•‘—” ‡•Ǥ ‘ƒ”†‘ˆ†‹”‡ –‘”•‘ˆ Ǥ —”‡‘ʹͳǡ Š˜– Šƒ‰‡† ‘– Šƒ˜‡ ƒ† ʹͲͳ͸ǡ ‘ˆ “—ƒ”–‡”  ‹‹ƒ‡–”—Š Š†‹‰ ”‰ƒˆ‘” ’”‘‰”ƒ Š‡†‰‹‰ ƒ –Š”‘—‰Š ‹–‹‰ƒ–‡† “‹› ——‡ǡ —”› ‘™”•ƒ† ˆ‘”™ƒ”†•ǡ —””‡ › ˆ—–—”‡•ǡ ‡“—‹–›  ˆ”Š”  Š  ‡–‘‘–Š‡ ‘ˆ •‡ –‹‘  –Š‡ ‹ ˆ—”–Š‡” †   ƒ ͳͲ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 55 A  ‹••—‡• ƒ† ”‡‹˜‡•–‡– ‘ˆ ’”‹ ‹’ƒŽ •’ƒ‹†‘–Š‡•ƒŽ‡‘ˆ‹˜‡•–‡–ˆ—†•Ǥ ‡†‹– ”‹• ”‡Žƒ–‡† –‘ ”‡•‹†‡–‹ƒŽ ‘”–‰ƒ‰‡• ’‘•‘”‡† •‡ —”‹–‹œƒ–‹‘ –”—•–•Ǥ ƒ’ƒ ‹–› ˆ‘” ‘•ǡ”‡•‹†‡–‹ƒŽ‘”–‰ƒ‰‡•ƒ”‡•‘Ž†–‘–Š‹”† ƒ†ƒ‘”–‰ƒ‰‡‘†”‘‰”ƒȋ”‘‰”ƒȌǤ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ǡ ƒ†Š‡”‹‰–‘‹–•‹˜‡•–‡–’‘Ž‹ ›–Šƒ–‘—–Ž‹‡• –‹‘ƒŽ ‘—•‹‰ –‘”–‰ƒ‰‡Ǧƒ ‡†‡ —”‹–‹‡• ƒ†‘ŽŽƒ”•ǡƒ††‘‘–Šƒ˜‡•‹‰‹ˆ‹ ƒ–‡š’‘•—”‡ –Š”‘—‰Š’”‹˜ƒ–‡’Žƒ ‡‡–•ǡƒƒ†‹ƒ„ƒǦ ‹‡•–Š‡”‡‹•‘„Œ‡ –‹˜‡‡˜‹†‡ ‡‘ˆ‹’ƒ‹”‡– ƒ†‹˜‡•–‡–Ž‘ƒ’‘”–ˆ‘Ž‹‘•ǡƒ††‡”‹˜ƒ–‹˜‡• ˆ”‘‘’‡”ƒ–‹‰ ƒ•ŠˆŽ‘™•Ǥ  Šƒ‰‡†ƒ–‡”‹ƒŽŽ›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ •‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ ƒ˜‡ ‘– Šƒ‰‡† ƒ–‡”‹ƒŽŽ› •‹ ‡ ‡ ‡„‡” ͵ͳǡ ‡”‡†„ƒ ‘—–‡”’ƒ”–‹‡•‹‘”†‡”–‘”‡†— ‡–Š‡ ˆ—†•™Š‹ Šƒ”‡ Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š –ˆ—†•™Š‹ Šƒ”‡ Žƒ••‹ˆ‹‡†ƒ•ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ Š‘Ž†‘”–‰ƒ‰‡•’‡†‹‰•ƒŽ‡‘”•‡ —”‹–‹œƒ–‹‘–‘ ‹–‹‰•–ƒ†ƒ”†•Ǥ ‘ ‡”–ƒ‹‘ˆ–Š‡†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ‡”ƒ–‹‘•Ǥ Ž‡•‡ —”‹–‹‡•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡ ‡ƒ”‹‰•Ǥ  ‡–’”ƒ –‹ ‡•‘ƒ‘‰‘‹‰„ƒ•‹•–‘‡˜ƒŽ—ƒ–‡–Š‡‹” FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ȋ ‘–‹—‡†Ȍ  Ž‡†‹‰’‘Ž‹ ›ƒ†—†‡”™” ‹–• ƒƒ‰‡‡– ‘ˆ Ž‹“—‹†‹–› ”‹• Š POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER   MANAGEMENT 5  5 A 

risk

risk

  d d n i . risk 1  RISK v rate _   5 price  0   - 1 1 - 11 risk 6   1 risk 0  2 _ Interest Equity Currency C C

P _ 1 ‹•‡š’‘•‡†–‘‡“—‹–›’”‹ ‡”‹•‘‹–•’”‘’”‹‡–ƒ”›‹˜‡•–‡ •‡ —”‹–‹‡•ƒ†‹–•‡“—‹–›•‡ —”‹–‹‡•ƒ†’”‘’”‹‡–ƒ”›‹˜‡•–‡– ’”‘ˆ‹–‘”Ž‘••Ǥ”‡ƒŽ‹œ‡†‰ƒ‹•ƒ†Ž‘••‡•‘ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒ ‹ ‘‡—–‹Ž–Š‡›ƒ”‡”‡ƒŽ‹œ‡†‘”—–‹Žƒƒ‰‡‡–‘ˆ †‡–‡” ‹•‡š’‘•‡†–‘‹–‡”‡•–”ƒ–‡”‹•‘‹–•Ž‘ƒ’‘”–ˆ‘Ž‹‘ƒ† —•‡†‹ ǯ•‘”–‰ƒ‰‡„ƒ‹‰‘’‡”ƒ–‹‘•Ǥ —–‹Ž‹œ‡•‹–‡”‡•–”ƒ–‡•™ƒ’•™‹–Šƒƒ†‹ƒ Š‡†—Ž‡  Šƒ”– ‹’ƒ –‘ˆˆŽ— –—ƒ–‹‰‹–‡”‡•–”ƒ–‡•‘‹–•‘”–‰ƒ‰‡„ƒ‹‰‘’ ǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡‡–‘ˆ‹–‡”‡•–”ƒ–‡”‹•Šƒ˜‡‘– c) ‹˜ƒŽ—‡ǡƒ–™Š‹ Š–‹‡–Š‡›ƒ”‡”‡ ‘”†‡†‹–Š‡•–ƒ–‡‡–•‘ˆ ’ƒ”–‹‡• ‹ Ž—†‹‰ ‡”–ƒ‹ —–—ƒŽ ˆ—†•ǡ•’‘•‘”‡†•‡ —”‹–‹œƒ–‹‘–”—•–•ǡƒ†„›‹••—ƒ ‡ƒ†•ƒŽ‡‘ˆƒ ‹•–‹–—–‹‘ƒŽ ‹˜‡•–‘”• ȋ Ȍǡ‹ Ž—†‹‰•ƒŽ‡•–‘ƒƒ†ƒ ‘—•‹‰”—•–—†‡”–Š‡ƒ  ƒ‹–ƒ‹• ‘‹––‡† ƒ’ƒ ‹–› ™‹–Š‹ ‡”–ƒ‹ ƒƒ†‹ƒ „ƒǦ• •ƒŽ‡• —†‡” –Š‡  ”‘‰”ƒ”‡’ƒ›‡–•Š‡Ž†‹’”‹ ‹’ƒŽ”‡‹˜‡•–‡–ƒ ‘—–•Ǥ ‘•‹•–• ‘ˆ ’ƒ”–‹ ‹’ƒ–‹‘ ‹ ‡™  ǯ• Ž‹“—‹†‹–› ’‘•‹–‹‘ ƒ† ǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ”‡‰‡‡”ƒŽŽ›†‡‘‹ƒ–‡†‹ƒƒ†‹ –‘ Šƒ‰‡•‹ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ–‡•Ǥ b) ‘‹••‹‘•‘–Š‡•ƒŽ‡‘ˆ‹˜‡•–‡–ˆ—†• ‘–‹—‡–‘„‡’ƒ‹† ƒŽ•‘ƒ‹–ƒ‹••—ˆˆ‹ ‹‡–Ž‹“—‹†‹–›–‘ˆ—†ƒ†–‡’‘”ƒ”‹Ž› Ž‘‰Ǧ–‡” ˆ—†‹‰ •‘—” ‡•Ǥ Š”‘—‰Š ‹–• ‘”–‰ƒ‰‡ „ƒ‹‰ ‘’‡”ƒ–‹ ʹͲͳͷǤ Market a) Credit ǯ• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ•‡ —”‹–‹‡•Š‘Ž†‹‰•ǡ‘”–‰ƒ‰‡  NOTE  ‡› Ž‹“—‹†‹–› ”‡“—‹”‡‡– ˆ‘”  ‹• –Š‡ ˆ—†‹‰ ‘ˆ ‘‹••‹‘     ƒ”‡•—„Œ‡ ––‘ ”‡†‹–”‹•Ǥ ‘‹–‘”•‹–• ”‡†‹–”‹•ƒƒ‰‡ ‡ˆˆ‡ –‹˜‡‡••Ǥ ƒƒ‰‡• ”‡†‹–”‹•”‡Žƒ–‡†–‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•„› ”‡†‹– ”‹• ’ƒ”ƒ‡–‡”• ƒ† ‘ ‡–”ƒ–‹‘ Ž‹‹–•Ǥ  ƒƒ‰‡• ” ’ƒ”–‹ —Žƒ”Ž›–Š”‘—‰Šƒ†Š‡”‹‰–‘‹–• ǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡‡–‘ˆ ”‡†‹–”‹•”‡Žƒ–‡†–‘ ƒ•Š ‘”–‰ƒ‰‡’‘”–ˆ‘Ž‹‘•ƒ††‡”‹˜ƒ–‹˜‡•Šƒ˜‡‘– Šƒ‰‡†ƒ–‡”‹ƒŽŽ› 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A55 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A56 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _  š‡•‡‘œ†‹–‡‘’‡‡•˜‘‡ȋ‘• ʹʹͶ͹ ͵ʹͶ š’‡•‡”‡ ‘‰‹œ‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ ‘ƒš‡• ͻ͵ʹ͹ ͵ͻͲ    ȏͳȐ ‘–ƒŽ‡š’‡•‡   ‡‡ƒ•—”‡‡–•  š’‡•‡”‡ ‘‰‹œ‡†‹‡–‡ƒ”‹‰•   ‘•–Ǧ‡’Ž‘›‡–„‡‡ˆ‹–•     ‡•‹‘’Žƒ•  ‹ ‡š’‡•‡  „‡‡ˆ‹–• ’‘•–Ǧ‡’Ž‘›‡– ‘–Š‡” ƒ† ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ ’Žƒ ’‡•‹‘ Š‡ NOTE   E n  –—ƒ”‹ƒŽŽ‘••‡•”‡Žƒ–‡†–‘–Š‡’‡•‹‘’Žƒ•ƒ†‘–Š‡”’‘•–Ǧ‡ g ‘•–Ǧ‡’Ž‘›‡–„‡‡ˆ‹–• ‡•‹‘’Žƒ• ‡–‹–‡”‡•– ‘•– ‡”˜‹ ‡ ‘•–• ‡–‹–‡”‡•– ‘•– —”–ƒ‹Ž‡– ‡”˜‹ ‡ ‘•–• †‡ ”‡ƒ•‡‹†‹• ‘—–”ƒ–‡••‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ 0 1 ‡—‘•‡•Ž™”ȋ”ƒ‡Ȍ–ƒ‹ —–”– ȋͶ͹ͷȌ ʹ  –—ƒ”‹ƒŽŽ‘••‡• Šƒ‰‡‹–Š‡ƒ••‡– ‡‹Ž‹‰ ‡–—”‘ƒ••‡–•Ž‘™‡”ȋ‰”‡ƒ–‡”Ȍ–Šƒ†‹• ‘—–”ƒ–‡  –—ƒ”‹ƒŽŽ‘••‡• _ A P C C  56 _ 12 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - PENSION 0 5 _ v 1 ȏͳȐ ȏͳȐ . i n d d

A 5 6  PLANS  AND  OTHER  ’‘„ˆ–ˆ” Š–”‡ ‘–• ‡”Š ͳʹͳƒ” ʹͲͳ͸ ͵ͳǡ ƒ” Š ‡†‡† ‘–Š• –Š”‡‡ –Š‡ ˆ‘” „‡‡ˆ‹–• ’Ž‘›‡– POST Ǧ EMPLOYMENT —‡‹– ƒ• ‘–Š‡” ƒ† ‡ƒ”‹‰• ‡– ‹ Ž—†‡†  BENEFITS  Š‡‘–•‡†‡†ƒ” Š͵ͳǡ Š”‡‡‘–Š•  Ͳ͸ʹͲͳͷ ʹͲͳ͸ ͵͸ͳ͵ ͵͵͵ ʹȌͺͷ ȋʹ͸Ȍ ͳȌȂ ȋͳ͵Ȍ ͳ ͳʹ ͸ͳ ͳͳ ͸͵ ͳ ͹͵ ͸ͳ ͷ ʹͶ ͳͷ ͸ ͺͲ ͸͸ ͹ ͷ ͷ ʹ Ͷ ͳ          †‡ ‘ ƒ –‘ †—‡ ‡  116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 57 A ͸ͷ ʹ͹͹ ȋͳͺȌ ͺͺ ʹͲͳ͸ ʹͲͳͷ Š”‡‡‘–Š• ‡†‡†ƒ” Š ͵ͳǡ Š‡ƒ‰‰”‡‰ƒ–‡†‡ˆ‡””‡†–ƒš  ͺ͵ ͳͺͻ — ‡”–ƒ‹–›‘ˆ–Š‡”‡ ‘˜‡”ƒ„‹Ž‹–›‹•–ƒ‡‹–‘ ƒ”‡ǣ ’‡†‡– ‘ ˆ—–—”‡ –ƒšƒ„Ž‡ ‡ƒ”‹‰• ™Š‡”‡ –Š‡ ’”‹ƒ”‹Ž›†—‡–‘–Š‡‡ˆˆ‡ –ˆ”‘–Š‡”‡•—Ž–•‘ˆ ˆ‡”‡ ‡•ƒ†——•‡†–ƒšƒ––”‹„—–‡•‘Ž›–‘–Š‡ ͵ͳǡʹͲͳ͸‹•Ž‘™‡”–Šƒ–Š‡–Š”‡‡‘–Š•‡†‡† Œ—”‹•†‹ –‹‘•ǡƒ”‡†— –‹‘‘ˆ‹ ‘‡–ƒš‡•‹–Š‡ –‹‘•ƒ†–Š‡”‡•—Ž–•ˆ”‘–Š‡Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷǤ ’‘”ƒ–‹‘ǯ••–ƒ–—–‘”›‹ ‘‡–ƒš”ƒ–‡‘ˆʹ͸Ǥ͹Ψ†—‡ ‘ǯ•Š‹‰Š‡”’‡” ‡–ƒ‰‡‘ˆ‘Ǧ–ƒšƒ„Ž‡‹˜‡•–‡– ƒ†Œ—•–‡––‘–ƒš’”‘˜‹•‹‘•ˆ‘”–ƒšˆ‹Ž‹‰•‹–Š‡ ”‡†‹–•ǡƒ–ƒš•‡––Ž‡‡–™‹–Š–Š‡ƒƒ†ƒ‡˜‡—‡ ƒ ‹ƒŽ’Žƒ‹‰’”‘ ‡••’”‘˜‹†‡•ƒ•‹‰‹ˆ‹ ƒ–„ƒ•‹• ””‡†–ƒš„ƒŽƒ ‡•Ǥ Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™ƒ•ͳʹǤ͸Ψǡ —–‹Ž‹œ‡†ǤŠƒ‰‡•‹ ‹” —•–ƒ ‡•‹ˆ—–—”‡’‡”‹‘†• ƒ”‘”–Š‡’”‡ ‡†‹‰›‡ƒ”Ǥ ‰Šˆ—–—”‡–ƒšƒ„Ž‡‡ƒ”‹‰•‹•’”‘„ƒ„Ž‡Ǥ –‹–›™‹ŽŽŠƒ˜‡–ƒšƒ„Ž‡‡ƒ”‹‰•ƒ†Ȁ‘”–ƒš’Žƒ‹‰ ̈́ͳǡ͵͹͵‹ŽŽ‹‘ƒ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ȋ̈́ͳǡͶ͵Ͷ‹ŽŽ‹‘ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  Šƒ”‡‘––ƒšƒ„Ž‡Ǥ  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER RATE TAXES     TAX 7  5 A

d ASSETS d  n i . 1 INCOME EXPENSE v  _ 5 INCOME TAX    0  - 1 1 TAX -  13 6  1 0 2 _ C C P _ 1 ƒ••‡–•ˆ‘”–Š‡‘•–•‹‰‹ˆ‹ ƒ–‡–‹–‹‡•™Š‡”‡–Š‹•ƒ’’Ž‹‡•‹• ƒ•ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷȌǤ  ‡ ‘‰‹–‹‘‹•„ƒ•‡†‘–Š‡ˆƒ ––Šƒ–‹–‹•’”‘„ƒ„Ž‡–Šƒ––Š‡‡ ‘’’‘”–—‹–‹‡•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ‘™–Š‡†‡ˆ‡””‡†–ƒšƒ••‡–•–‘„‡ ƒ›ƒ†˜‡”•‡Ž›‹’ƒ ––Š‡ƒ••‡••‡–‘ˆ–Š‡”‡ ‘˜‡”ƒ„‹Ž‹–›ǤŠ‡ ƒ ‘—–‹‡•–ƒ„Ž‹•Š‹‰–Š‡†‡ˆ‡””‡†–ƒšƒ••‡–•ǤŠ‡ƒ—ƒŽˆ‹ ˆ‘”–Š‡‡ƒ•—”‡‡–‘ˆ†‡ˆ‡””‡†–ƒšƒ••‡–•Ǥ Š‡ †‡ˆ‡””‡† –ƒš ƒ••‡–• ‘ˆ ‹ˆ‡ ‘ ‹ Ž—†‡ „ƒŽƒ ‡• ™Š‹ Š ƒ”‡”‡Ž‡˜ƒ–‡–‹–‹‡•Šƒ˜‡‹ —””‡†Ž‘••‡•‹‡‹–Š‡”–Š‡ —””‡–›‡ †‡  DEFERRED ‡ˆ‡””‡†–ƒšƒ••‡–•ƒ”‡”‡ ‘‰‹œ‡†ˆ‘”†‡†— –‹„Ž‡–‡’‘”ƒ”›†‹ˆ ‡š–‡––Šƒ–”‡ƒŽ‹œƒ–‹‘‘ˆ–Š‡”‡Žƒ–‡†‹ ‘‡–ƒš„‡‡ˆ‹––Š”‘—  EFFECTIVE Š‡‘˜‡”ƒŽŽ‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ˆ‘”–Š‡‘”’‘”ƒ–‹‘ˆ‘”–  NOTE INCOME Š‡ ‘’‘‡–•‘ˆ‹ ‘‡–ƒš‡š’‡•‡”‡ ‘‰‹œ‡†‹‡–‡ƒ”‹‰•   —””‡––ƒš‡• ‡ˆ‡””‡†–ƒš‡•    ‘’ƒ”‡†–‘ͳͶǤ͵Ψˆ‘”–Š‡ˆ—ŽŽ›‡ƒ”ʹͲͳͷƒ†ʹʹǤ͹Ψˆ‘”–Š‡–Š”‡ Š‡‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡•ƒ”‡‰‡‡”ƒŽŽ›Ž‘™‡”–Šƒ–Š‡‘” –‘‘Ǧ–ƒšƒ„Ž‡‹˜‡•–‡–‹ ‘‡ǡŽ‘™‡”–ƒš‹ˆ‘”‡‹‰Œ—”‹•†‹ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•™Š‹ Š‡‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š  ‰‡ ›”‡Žƒ–‹‰–‘’”‡˜‹‘—•›‡ƒ”•ǯ‹–‡”ƒ–‹‘ƒŽ–ƒšƒ—†‹–•ǡƒ ǤǤǡƒ†–Š‡‹’ƒ –‘ˆǤǤ ‘”’‘”ƒ–‡–ƒš”ƒ–‡ Šƒ‰‡•‘†‡ˆ‡ ƒ” Š͵ͳǡʹͲͳͷƒ†–Š‡ˆ—ŽŽ›‡ƒ”ʹͲͳͷ‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ•™‡ŽŽƒ•‹ˆ‡ ‹ ‘‡ƒ†‹ ‘‡•—„Œ‡ ––‘Ž‘™‡”‹ ‘‡–ƒš”ƒ–‡•‹ˆ‘”‡‹‰ ǤǤƒ•ƒ”‡•—Ž–‘ˆƒƒƒ‰‡‡–‡Ž‡ –‹‘–‘ Žƒ‹ˆ‘”‡‹‰–ƒš 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A57 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A58 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ ‹—‹‡‡ˆ ˆ•„‹‹”‡ȋȌȋͳȌ ͵ͷ͵ ȋͳȌ ȋͳ͵Ȍ Ͷ͹ ͵͸͹  ͵ͷͶ ȋͳ͵Ȍ  ͸ͳ Ͷͺ     ˆ”‘–Š‡ ‘’—–ƒ–‹‘‘ˆ†‹Ž—–‡†‡ƒ”‹‰•’‡”•Šƒ”‡ƒ•–Š‡›™‡”‡ ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡͳͲǡ͵ͳͶǡͺ͹Ͳ•–‘ ‘’–  ‹Ž—–‡† ƒ•‹  Net  ͹ͻʹ ȋ͵͵Ȍ ƒ ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡—„‡”‘ˆ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡•‘—–•–ƒ†‹‰Ȃ Number  ȋͷͳʹȌ ‡–‡ƒ”‹‰•ƒ†Œ—•–‡†ˆ‘”†‹Ž—–‹˜‡‡ˆˆ‡ – ‹Ž—–‹˜‡‡ˆˆ‡ –‘ˆ•—„•‹†‹ƒ”‹‡• ͳͷͺ ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• ‹˜‹†‡†•‘‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡• ͷͻ͹ ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘•Šƒ”‡Š‘Ž†‡”• Earnings ͷͺʹ ͳǡ͸ͺͶ ’‡”•Šƒ”‡ǣ ȋͳ͹Ȍ Š‡ˆ‘ŽŽ‘™‹‰‹•ƒ”‡ ‘ ‹Ž‹ƒ–‹‘‘ˆ–Š‡—‡”ƒ–‘”•ƒ†–Š‡†‡ NOTE ȋ͵͹ͶȌ ͳͻʹ    ͳǡ͸ͷͻ ʹʹͶ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷ       ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸  NOTE   ‡‰–†ƒ‡ƒ‡‡ˆ’”‹‹ƒ‹‰•ƒ‡—•ƒ† ‹ ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡—„‡”‘ˆ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡•‘—–•–ƒ†‹‰Ȃ ƒƒ ǡ‡†‘‡‹† Ͷ ǡ͸ ͻ ͷͳȋͷ ͳǡ͵ͳ͸ ȋ͵ͷȌ ȋͷͷͳȌ ͳͻ͸ ͳǡͲ͸Ͷ ͸Ͷʹ ͳǡͳͺ͸ ȋͳ͵Ȍ ȋͷͲͶȌ ʹ͹ʹ ͳǡͳʹ͹ ͵ͲͶ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† E n g ‘‡–ƒš”‹‡‘—•ƒ†– ’‹ͲͻʹǤͳ ͲǤͻ  ‘–‡–‹ƒŽ‡š‡” ‹•‡‘ˆ‘—–•–ƒ†‹‰•–‘ ‘’–‹‘• –‡‘’‡‡•˜‘‡ȋ‘•͸ ͸ ͺȋͺȋȌͶ͹ͷ ȋʹȌ ȋͺͺȌ ͵ͺ Ͷ͸͹ ͸Ͳ ȋͶͻͺȌ Ͷ ȋͳ͵ͲȌ ȂͶͻ Ȃ Ȃ ͺͲ –Š‡” –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ ȋͷ͵ʹȌ ȂͶͻ ͺͲ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ 0  earnings 1 _ A P C C    58 of  _ 15 14 2  0 participating POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6    per - 1 1 - EARNINGS OTHER 0  5 participating _ v 1 . i n d d



shares A 5  8 COMPREHENSIVE  share   [millions] PER   SHARE    INCOME ˆŽ‘™Š‡†‰‡• ˆŽ‘™Š‡†‰‡• —‡ ͸Ǥ Ͷ͸ͶǤͲ Ͷ͸ͶǤͳ  Ž—–‡† ”‡˜ƒŽ—ƒ–‹‘ ”‡˜ƒŽ—ƒ–‹‘ ˜‡•–‡ ˜‡•–‡ ‹ ͸Ǥ Ͷ͸ͳǤͻ Ͷ͸͵Ǥʹ  •‹ ƒ† ƒ•Š ƒ† ƒ•Š  – –   –‡•–Šƒ–ƒ›„‡”‡ Žƒ••‹ˆ‹‡† –‡•–Šƒ–ƒ›„‡”‡ Žƒ••‹ˆ‹‡† •—„•‡“—‡–Ž›–‘‡–‡ƒ”‹‰• •—„•‡“—‡–Ž›–‘‡–‡ƒ”‹‰• ƒ–‹Ǧ†‹Ž—–‹˜‡Ǥ –”ƒ•Žƒ–‹‘ –”ƒ•Žƒ–‹‘ ‘‹ƒ–‘”•—•‡†‹–Š‡ ‘’—–ƒ–‹‘•‘ˆ‡ƒ”‹‰• —””‡ —””‡ ‘”‡‹‰ ‘”‡‹‰ ‹‘•ȋͶǡ͵͸͸ǡ͹ͲͶ‹ʹͲͳͷȌŠƒ˜‡„‡‡‡š Ž—†‡†    › ›   ‘”’‘”ƒ–‹‘• ‘”’‘”ƒ–‹‘• ‘–”‘ŽŽ‡ ‘–”‘ŽŽ‡ ƒ••‘ ‹ƒ–‡• ƒ••‘ ‹ƒ–‡• Šƒ”‡‘ Šƒ”‡‘ Œ‘‹–Ž Œ‘‹–Ž ƒ ƒ † † † † › › ˆ ˆ „‡‡ˆ‹–’Žƒ• „‡‡ˆ‹–’Žƒ• ”‡Š ‡†‡†ƒ” Š͵ͳǡ Š”‡‡‘–Š•  ǤͲͲǤ͹͸ ͲǤ͹͹ ͲǤͳͲ ͲǤͳͲ   ”‡ Žƒ••‹ˆ‹‡†–‘‡–‡ƒ”‹‰• ”‡ Žƒ••‹ˆ‹‡†–‘‡–‡ƒ”‹‰• ȋŽ‘••‡•Ȍ‘ ȋŽ‘••‡•Ȍ‘  –—ƒ”‹ƒŽ  –—ƒ”‹ƒŽ †‡ˆ‹‡ †‡ˆ‹‡ –‡•–Šƒ–™‹ŽŽ‘–„‡ –‡•–Šƒ–™‹ŽŽ‘–„‡ ‰ƒ‹• ‰ƒ‹• † †   ‘”’‘”ƒ–‹‘• ‘”’‘”ƒ–‹‘• Ͳ͸ʹͲͳͷ ʹͲͳ͸ ‘–”‘ŽŽ‡ ‘–”‘ŽŽ‡ •‘‹–•‘–ƒŽ ƒ••‘ ‹ƒ–‡• ‘–ƒŽ ƒ••‘ ‹ƒ–‡• Šƒ”‡‘ Šƒ”‡‘ Œ‘‹–Ž Œ‘‹–Ž ƒ ƒ † † † † › › ˆ ˆ 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 59 A Ž‘‰‹‡•ǡ ‘” •‹‹Žƒ” –‡ Š‹“—‡• —•‹‰ ’–‹‘ ”‡•–”‹ –‹‘•ǡ ‡”–ƒ‹ ‘˜‡”Ǧ–Š‡Ǧ ‹˜ƒ–‡ ‡“—‹–‹‡•ǡ •‘‡ ‘”–‰ƒ‰‡ Ž‘ƒ•ǡ ƒ–‡ „‘†•ǡ ‘•– ƒ••‡–Ǧ„ƒ ‡† •‡ —”‹–‹‡•ǡ  •’”‡ƒ†•ǡ –™‘Ǧ•‹†‡† ƒ”‡–•ǡ „‡ Šƒ”  •‡ —”‹–‹‡•ǡ ”‡•–”‹ –‡† •–‘ ǡ •‘‡ ’”‹˜ƒ–‡ –‡”˜ƒŽ•ǤŠ‡ˆƒ‹”˜ƒŽ—‡•ˆ‘”•‘‡‡˜‡Žʹ  “—‘–‡•ǡ ‹–‡”ƒŽ ’”‹ ‹‰ ‘†‡Ž•ǡ ‡š–‡”ƒŽ ‡Žͳ–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž‡ˆ‘”–Š‡ƒ••‡–‘” ‡ˆ‘”–Š‡ƒ••‡–‘”Ž‹ƒ„‹Ž‹–›ǡ•— Šƒ•‹–‡”‡•– •‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•—–‹Ž‹œ‹‰‡˜‡Ž͵‹’—–• ˜ƒŽ—‡‘ˆ†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•‹•  ƒŽ —Žƒ–‡†—•‹‰ƒ”‡–‹ˆ‘”ƒ–‹‘ƒ–ƒ ”˜‹ ‡ ‹’—–• ‹ Ž—†‡ǡ „—– ƒ”‡ ‘– Ž‹‹–‡† –‘ǡ  ‘– „ƒ•‡† ‘ ‘„•‡”˜ƒ„Ž‡ ƒ”‡– ‹’—–• ƒ† —”‡•ǡƒ†—–—ƒŽƒ†•‡‰”‡‰ƒ–‡†ˆ—†•™Š‹ Š •–”‹ –‹‘•Ǥ ƒ –‹˜‡ƒ”‡–•ˆ‘”‹†‡–‹ ƒŽƒ••‡–•‘”Ž‹ƒ„‹Ž‹–‹‡• –›ˆ‘”–Š‡ƒ••‡–‘”Ž‹ƒ„‹Ž‹–›ǤŠ‡˜ƒŽ—‡•‘ˆ–Š‡  ‡ ‡„‡” ͵ͳǡ ʹͲͳͷ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ƒ† •ƒ†Ž‹ƒ„‹Ž‹–‹‡•—–‹Ž‹œ‹‰‡˜‡Žͳ‹’—–•‹ Ž—†‡ ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•”‡ ‘”†‡†ƒ–ˆƒ‹”˜ƒŽ—‡ǡ Ž‹–‹‡•‹ Ž—†‡–Š‘•‡’”‹ ‡†—•‹‰ƒƒ–”‹š™Š‹ Š‹• ‡“—‘–‡†’”‹ ‡•ˆ‘”•‹‹Žƒ”ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‹ ‘”†‡†ƒ–ˆƒ‹”˜ƒŽ—‡Šƒ˜‡„‡‡ ƒ–‡‰‘”‹œ‡†„ƒ•‡† Ž—ƒ–‹‘‡–Š‘†•ƒ†ƒ••—’–‹‘•†‡• ”‹„‡†‹–Š‡ Š‡ ƒŽ —Žƒ–‹‘•ƒ”‡•—„Œ‡ –‹˜‡‹ƒ–—”‡ǡƒ†‹˜‘Ž˜‡ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER INSTRUMENTS  FINANCIAL  OF  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER VALUE 9  5 A

d d n i . 1 FAIR v _ 5  0 - 1 1 - 16 6  1 0 2 _ ƒŒ‘”‹–› ‘ˆ ‡˜‡Ž ͵ •‡ —”‹–‹‡• ™‡”‡ ‘„–ƒ‹‡† ˆ”‘ƒ’’”ƒ‹•‡”•‘”„›†‹• ‘—–‹‰’”‘Œ‡ –‡† ƒ•ŠˆŽ‘™•Ǥ ‹ƒ ‹ƒŽƒ• •‹‰Ž‡Ǧ„”‘‡” ‹ Ž—†‡ ‡”–ƒ‹ „‘†•ǡ ‡”–ƒ‹‹˜‡•–‡–• ‹ ƒ••‡–Ǧ„ƒ ‡† —–—ƒŽ ƒ† •‡ —”‹–‹‡•ǡ •‡‰”‡‰ƒ–‡† ˆ—†• •‘‡ ‘—–‡”†‡”‹˜ƒ–‹˜‡•ƒ†‹˜‡•–‡–’”‘’‡”–‹‡•Ǥ ™Š‡”‡ ’” –Š‡”‡ ƒ”‡ ”‡†‡ ‡˜‡Ž ͵ ‹’—–• —–‹Ž‹œ‡ ‘‡ ‘” ‘”‡ •‹‰‹ˆ‹ ƒ– ‹’—–•‹ Ž—†‡ –Šƒ– ƒ”‡ •‹–—ƒ–‹‘• ™Š‡”‡ –Š‡”‡ ‹• Ž‹––Ž‡ǡ ‹ˆ ƒ›ǡ ƒ”‡– ƒ –‹˜‹ ‡˜‡Ž ʹ ‹’—–• —–‹Ž‹œ‡ ‘–Š‡”Ǧ–ŠƒǦ“—‘–‡† ’”‹ ‡• ‹ Ž—†‡† ‹ ‡˜ ‡˜‡Žͳ‹’—–•—–‹Ž‹œ‡‘„•‡”˜ƒ„Ž‡ǡ—ƒ†Œ—•–‡†“—‘–‡†’”‹ ‡•‹ –Šƒ––Š‡‘”’‘”ƒ–‹‘Šƒ•–Š‡ƒ„‹Ž‹–›–‘ƒ ‡••Ǥ ‹ƒ ‹ƒŽƒ••‡– ƒ –‹˜‡Ž›‡š Šƒ‰‡Ǧ–”ƒ†‡†‡“—‹–›•‡ —”‹–‹‡•ǡ‡š Šƒ‰‡Ǧ–”ƒ†‡†ˆ—– Šƒ˜‡ƒ˜ƒ‹Žƒ„Ž‡’”‹ ‡•‹ƒƒ –‹˜‡ƒ”‡–™‹–Š‘”‡†‡’–‹‘”‡ Ž‹ƒ„‹Ž‹–›ǡ‡‹–Š‡”†‹”‡ –Ž›‘”‹†‹”‡ –Ž›Ǥ‡˜‡Žʹ‹’—–•‹ Ž—† ƒ –‹˜‡ƒ”‡–•ǡƒ†‘–Š‡”Ǧ–ŠƒǦ“—‘–‡†’”‹ ‡•–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž ”ƒ–‡•ƒ†›‹‡Ž† —”˜‡•–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž‡ƒ– ‘‘Ž›“—‘–‡†‹ •‡ —”‹–‹‡• ™‡”‡ ‘„–ƒ‹‡† ˆ”‘ ƒ ’”‹ ‹‰ •‡”˜‹ ‡Ǥ Š‡ ’”‹ ‹‰ •‡ „‡ Šƒ” ›‹‡Ž†•ǡ ”‡’‘”–‡† –”ƒ†‡•ǡ „”‘‡”Ȁ†‡ƒŽ‡” “—‘–‡•ǡ ‹••—‡” •‡ —”‹–‹‡•ǡ‘ˆˆ‡”•ƒ†”‡ˆ‡”‡ ‡†ƒ–ƒǤ‡˜‡Žʹƒ••‡–•ƒ†Ž‹ƒ„‹ „ƒ•‡†‘ ”‡†‹–“—ƒŽ‹–›ƒ†ƒ˜‡”ƒ‰‡Ž‹ˆ‡ǡ‰‘˜‡”‡–ƒ†ƒ‰‡ › „‘†• ƒ† ‡“—‹–‹‡•ǡ ‘•– ‹˜‡•–‡–Ǧ‰”ƒ†‡ ƒ† Š‹‰ŠǦ›‹‡Ž† ‘”’‘” ‘•–‘˜‡”Ǧ–Š‡Ǧ ‘—–‡”†‡”‹˜ƒ–‹˜‡•ƒ†‘”–‰ƒ‰‡Ž‘ƒ•ǤŠ‡ˆƒ‹” †‡–‡”‹‡† —•‹‰ ˜ƒŽ—ƒ–‹‘ ‘†‡Ž•ǡ †‹• ‘—–‡†’”‹ƒ”‹Ž›‘„•‡”˜ƒ„Ž‡ƒ”‡–‹’—–•Ǥ ƒ•Š ˆŽ‘™ ‡–Š‘†‘ C C

P _ 1 Š‡ ˆ‘ŽŽ‘™‹‰ –ƒ„Ž‡ ’”‡•‡–• –Š‡ ‘”’‘”ƒ–‹‘ǯ• ˆ‹ƒ ‹ƒŽ ƒ••‡–• ‹ Ž—†‹‰–Š‡‹”Ž‡˜‡Ž•‹–Š‡ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›—•‹‰–Š‡˜ƒ •—ƒ”›‘ˆ•‹‰‹ˆ‹ ƒ–ƒ ‘—–‹‰’‘Ž‹ ‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ• ƒ„‘˜‡Ǥ ƒ‹” ˜ƒŽ—‡• ƒ”‡ ƒƒ‰‡‡–ǯ• ‡•–‹ƒ–‡••’‡ ‹ˆ‹ ’‘‹–‹–‹‡ƒ†ƒ›‘–”‡ˆŽ‡ –ˆ—–—”‡ˆƒ‹”˜ƒŽ—‡•Ǥ ƒ† ƒ”‡ ‰‡‡”ƒŽŽ› — ‡”–ƒ‹–‹‡•ƒ†ƒ––‡”•‘ˆ•‹‰‹ˆ‹ ƒ–Œ—†‰‡–Ǥ     NOTE Š‡ ‘”’‘”ƒ–‹‘ǯ• ˆ‹ƒ ‹ƒŽ ƒ••‡–• ƒ† ˆ‹ƒ ‹ƒŽ Ž‹ƒ„‹Ž‹–‹‡• ”‡ —’‘–Š‡ˆ‘ŽŽ‘™‹‰ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›ǣ      0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A59 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A60 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ –‡‹„Ž–‡ͳ͸ȂȂͳͶ͸ Ȃ Ȃ ͳͶ͸ –Š‡”Ž‹ƒ„‹Ž‹–‹‡• –‡‹„Ž–‡ͶȂȂͶ Ȃ Ȃ ʹǡ͸ͺͻ ʹǡʹͷ͵ Ͷ͹ ʹ͹ Ͷ ʹǡ͸͵ͻ ʹǡʹʹ͸ ͵ Ȃ Š‡”‡™‡”‡‘•‹‰‹ˆ‹ ƒ––”ƒ•ˆ‡”•„‡–™‡‡‡˜‡Žͳƒ†‡˜‡Žʹ  –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ʹǡͳͳ͸ ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• Financial ʹ͵  ʹǡͲͻ͵ Ȃ ‘†• Financial      ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• Financial     ‘†• Financial   NOTE   –‡•‡• ͺ Ͳ Ͷͷͻͻ ͳͶ ͷǡʹ͵͹ ͷʹͲ ʹͲͶ ͷǡʹ͵͹ Ȃ Ȃ ͵ͺͳ ͷͳ͸ Ȃ Ͷ ͹͵ͷ ͳͳ ͷǡͲͶͻ ͸͹ͷ  –Š‡”ƒ••‡–• ͳͻʹ ͷǡͲͶͻ ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡–’”‘’‡”–‹‡• Ȃ Ȃ ͷ͵ʹ Šƒ”‡• ͸͹ʹ ‘”–‰ƒ‰‡Ž‘ƒ• Ȃ ͵  –Š‡”ƒ••‡–• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡–’”‘’‡”–‹‡• Šƒ”‡• ‘”–‰ƒ‰‡Ž‘ƒ• E n g   ˜‹ƒŽ‘ƒ‡ ǡ͵  ǡ͸ ʹǡͲͻ͸ ͳǡͲ͸Ͳ ͳʹǡʹͲͷ ͸ǡ͸ͻʹ ͵ͺͶ ʹ ͳ ͸͹ Ȃ ͺ͸ǡͶ͸Ͳ ͳǡͲ͵Ͷ ͳʹǡʹͲͶ ͳͲ ͵ͺͶ ͳͲ Ȃ ͸ǡ͸ͳͷ Ȃ ͺ͸ǡͶͷͲ Ȃ ͳǡͻͻ͸ ͳǡͲͶ͵ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ͳͳǡͻ͹͸ ͸ǡ͹ͷʹ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͷ͹ͺ ʹ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• Ȃ ͷ͸ Ȃ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͺ͸ǡʹͶͷ ͻͷͳ ͳͳǡͻ͹͸ ͸ ͳ ͷ͹ͺ Ȃ ͸ǡ͸ͻͲ Ȃ ͺ͸ǡʹͶͶ Ȃ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• 0 1 _ A P C C  60 _ 16     liabilities assets liabilities assets 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - FAIR   0 recorded recorded 5 _ v   1 recorded recorded . i n d d 

VALUE

A   at at 6 0   fair fair   at at    fair fair   value value  OF   value value    FINANCIAL    INSTRUMENTS ‹–Š‡•‡’‡”‹‘†•Ǥ ‡‡ ‡‡‡˜‡Ž͵ ‡˜‡Žʹ ‡˜‡Žͳ ‡˜‡Ž͵ ‡˜‡Žʹ ‡˜‡Žͳ ǡ͵ ͻ͹Ͳ͸͵ͻͳͳͶǡͳͻ͵ ͸ǡ͵ͺͻ ͻͻǡ͹͹Ͳ ͺǡͲ͵Ͷ ͳͳͶǡͲͲ͸ ͸ǡͳ͸Ͳ ͻͻǡ͸͹Ͳ ͺǡͳ͹͸  ȋ ‘–‹—‡†Ȍ Ͷ ǡͳ ͷͶǡ͵Ͷͳ ͹ͷ Ͷǡͳͳ͹ ͳͶͻ ǡʹ ʹʹǡͲ͹ͻ ͷʹ ʹǡͲʹͶ ͵ ǡ͸ ͶͶǡͻͶ͸ ͹Ͷ Ͷǡͺ͸ͷ ͹              ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ ˆƒ‹”˜ƒŽ—‡ ˆƒ‹”˜ƒŽ—‡ ‘–ƒŽ ‘–ƒŽ 116-05-12 2:02PM 6 - 0 5 - 1 2

2 : 0 2

P M M P

2 0

PART A : 2

POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 61 A     – – – – ””‘„‘”ƒ–‹‘ ‘ˆ Žƒ••‡–•’”‡˜‹‘—•Ž› ‰ƒ–‡†ˆ—†•Ǥ ‘–”ƒ ‘–”ƒ Ž‹ƒ„‹Ž‹–‹‡• ‘–ƒŽ Ž‹ƒ„‹Ž‹–‹‡• ‘–ƒŽ ˜‡•–‡ ˜‡•–‡ –Š‡” –Š‡” ƒ••‡–• ƒ••‡–• ȋŽ‹ƒ„‹Ž‹–‹‡•Ȍ ȋŽ‹ƒ„‹Ž‹–‹‡•Ȍ ‡– ‡–   ‡”‹˜ƒ–‹˜‡•ǡ  ‡”‹˜ƒ–‹˜‡•ǡ – – ȋ ‘–‹—‡†Ȍ  ’”‘’‡”–‹‡• ’”‘’‡”–‹‡• ˜‡•–‡ ˜‡•–‡ –• •—„•‹†‹ƒ”‹‡• Šƒ˜‡ —–‹Ž‹œ‡† ‡˜‡Ž ͵ ‹’—–• –‘ ‹ƒŽƒ••‡–•ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•‡ƒ•—”‡†ƒ– ƒ†ʹͲͳͷǤ ˆ‘”•ƒŽ‡ ˆ‘”•ƒŽ‡ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡ ”‡’”‡•‡–•–Š‡—”‡ƒŽ‹œ‡†‰ƒ‹•‘ˆ‘”‡‹‰‡š Šƒ‰‡Ǥ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ƒ„‹Ž‹–›‘ˆ‹’—–•‹˜ƒŽ—ƒ–‹‘‡–Š‘†‘Ž‘‰‹‡•ƒ•‡˜‹†‡ ‡†„› ‘ ‹Ž‹–›‘ˆ‹’—–•‹˜ƒŽ—ƒ–‹‘‡–Š‘†‘Ž‘‰‹‡•‘”–‘‘–Š‡”ˆ‹ƒ ‹ƒ ”‡––”ƒ•ƒ –‹‘•Ǥ INSTRUMENTS ‡†‡’–‹‘”‡•–”‹ –‹‘•‘‹˜‡•–‡–•‹—–—ƒŽˆ—†•ƒ†•‡‰”‡  –Š”‘—‰Š –Š”‘—‰Š ƒ‹”˜ƒŽ—‡ ƒ‹”˜ƒŽ—‡ ’”‘ˆ‹–‘”Ž‘•• ’”‘ˆ‹–‘”Ž‘•• ‘†• Šƒ”‡• ‘†• Šƒ”‡• ˆ‘”•ƒŽ‡ ˆ‘”•ƒŽ‡ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡ FINANCIAL  Ȃ Ȃ Ȃ ͷͷ ͻͻ Ȃ ͵ Ȃ ͳͷ͹ ȋͳȌ Ȃ Ȃ ȋ͵ʹȌ ȋʹͺ͸Ȍ Ȃ Ȃ Ȃ ȋ͵ͳͻȌ OF  –Š”‘—‰Š –Š”‘—‰Š POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ƒ‹”˜ƒŽ—‡ ƒ‹”˜ƒŽ—‡ ’”‘ˆ‹–‘”Ž‘•• ’”‘ˆ‹–‘”Ž‘•• ȂȂȋȌ  ȋʹȌ Ȃ Ȃ ȂȂ ȂȂȋʹȌȂ  ȋͺȌ ȋͳȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋͻȌ ȂȂ Ȃ ͸Ȃ͸  ȂȂȂȂ ȏ͵Ȑ ȏ͵Ȑ VALUE 1 ȏʹȐ  6 A

d d n i . 1 FAIR v _ ȏͳȐ ȏͳȐ 5  0 - 1 1 - 16 6  1 0 ‹ ‘‡ ‹ ‘‡ 2 _ ‡–‡ƒ”‹‰• ‘–Š‡” ‘’”‡Š‡•‹˜‡ ͵ Ȃ ͷ ͳ ͷͷ ȋʹͺȌ Ȃ Ȃ ͵͸ ‡–‡ƒ”‹‰• ‘–Š‡” ‘’”‡Š‡•‹˜‡ Ȃ Ȃ ȋ͵Ȍ Ͷ ʹͶ ȋͺȌ Ȃ Ȃ ͳ͹ C C ƒ”‡–’”‹ ‡•™‹–Š—Ž–‹’Ž‡’”‹ ‹‰˜‡†‘”•‘”–Š‡Ž‹ˆ–‹‰‘ˆ” ”‡ ‘”†‡†ƒ– ‘•–„‡‹‰”‡‡ƒ•—”‡†ƒ–ˆƒ‹”˜ƒŽ—‡—•‹‰”‡ ‡–ƒ P —” Šƒ•‡•ƒŽ‡•‡––Ž‡‡–•–Š‡””ƒ•ˆ‡”•‹–‘‡˜‡Ž͵ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ͵ͳ Ȃ Ȃ Ȃ ͹ͻ Ȃ Ȃ ͳͺͲ ȋͷȌ ͵͸ Ȃ ͳ ȋͶȌ Ȃ Ȃ ʹ Ȃ Ȃ Ȃ Ȃ Ȃ ʹͻͳ Ȃ Ȃ Ȃ ȋͳȌ ȋͻȌ ʹ ͵ͷ ”ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ —” Šƒ•‡•ƒŽ‡•‡––Ž‡‡–•–Š‡””ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ʹ Ȃ Ȃ ȋͳͲȌ ʹʹ Ȃ ȋͳͳȌ Ȃ ͹Ͷ Ȃ Ȃ Ȃ ȋͳȌ Ȃ Ȃ Ͷ ͳ ȋͶȌ Ȃ Ȃ Ȃ Ȃ Ȃ ͻͺ Ȃ ȋʹͷȌ Ͷ Ͷ Ͷ ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ    ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ     ‘—–‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ˆ‘”‹˜‡•–‡–’”‘’‡”–‹‡•  ”ƒ•ˆ‡”•‹–‘‡˜‡Ž͵ƒ”‡†—‡’”‹ƒ”‹Ž›–‘†‡ ”‡ƒ•‡†‘„•‡”˜ƒ„  ”ƒ•ˆ‡”• ‘—– ‘ˆ ‡˜‡Ž ͵ ƒ”‡ †—‡ ’”‹ƒ”‹Ž› –‘ ‹ ”‡ƒ•‡† ‘„•‡”˜ _ 1 ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͺͻ ͳ ͷ͵ ͳǡͳͳͷ ͶǡͻͶ͵ ȋͷͳȌ ͻ ȋʹͻȌ ͸ǡͳ͵Ͳ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͳ Ȃ ͷ͸ ͳǡͲͶ͵ ͷǡͲͶͻ ȋͷʹȌ ͳͳ ȋʹ͵Ȍ ͸ǡͲͺͷ ȏͳȐ ȏʹȐ ȏ͵Ȑ    Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳͷ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ͺ͸ ͳ ͳͻ ͻͶͻ Ͷǡ͸ͳ͵ ȋʹ͸Ȍ Ȃ ȋʹͺȌ ͷǡ͸ͳͶ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ͳͲ ͳ ͸͹ ͳǡͲ͸Ͳ ͷǡʹ͵͹ ȋͶ͹Ȍ ͳͶ ȋʹ͹Ȍ ͸ǡ͵ͳͷ  NOTE Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡’”‡•‡–•ƒ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘ƒ„‘—–ˆ‹ƒ ˆƒ‹”˜ƒŽ—‡‘ƒ”‡ —””‹‰„ƒ•‹•ˆ‘”™Š‹ Š–Š‡‘”’‘”ƒ–‹‘ƒ†‹ †‡–‡”‹‡ˆƒ‹”˜ƒŽ—‡ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸  Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳ͸     0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A61 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A62 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _        ˆ‹ƒ ‹ƒŽƒ••‡–•ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡• ƒ–‡‰‘”‹œ‡†ƒ•‡˜‡Ž Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡•‡–•‘—–‹ˆ‘”ƒ–‹‘ƒ„‘—–•‹‰‹ˆ‹ ƒ–—‘„NOTE   E ’”‘’‡”–‹‡• ˜‡•–‡– Type Š”• Š‡†‡–‡”‹ƒ–‹‘‘ˆ–Š‡ Šƒ”‡• n g 0 1 _  A of P C  asset C  62 _ 16 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1  6  - 1 1 - FAIR 0 5 _ v 1 Valuation —””‡–ƒ”‡–”ƒ–‡•Ǥ ƒ’’Ž‹ ƒ„Ž‡–‘–Š‡ƒ••‡–„ƒ•‡†‘ ‘˜‡”ƒŽŽ ƒ’‹–ƒŽ‹œƒ–‹‘”ƒ–‡• †‹• ‘—–ǡ”‡˜‡”•‹‘ƒ”›ƒ† ‘’‡”ƒ–‹‰‡š’‡†‹–—”‡•Ȍƒ† ”‡–ƒŽ”ƒ–‡•ǡ ƒ’‹–ƒŽƒ† ƒ•ˆ—–—”‡Ž‡ƒ•‹‰ƒ••—’–‹‘•ǡ •— Šƒ•ˆ—–—”‡ ƒ•ŠˆŽ‘™•ȋ•— Š ”‡“—‹”‡•–Š‡—•‡‘ˆ‡•–‹ƒ–‡• ˜ƒŽ—‡‘ˆ‹˜‡•–‡–’”‘’‡”–› Š‡†‡–‡”‹ƒ–‹‘‘ˆ–Š‡ˆƒ‹” ‡š’‡ –‡†ˆ—–—”‡‡– ƒ•ŠˆŽ‘™•Ǥ ƒ†‘†‡Ž•–Šƒ–†‹• ‘—– ‘‡š’‡ –‡† ƒ’‹–ƒŽ‹œƒ–‹‘”ƒ–‡• ’”‘’‡”–›˜ƒŽ—ƒ–‹‘‘†‡Ž•„ƒ•‡† ƒ”‡‰‡‡”ƒŽŽ›†‡–‡”‹‡†—•‹‰ ˜‡•–‡–’”‘’‡”–›˜ƒŽ—ƒ–‹‘• ”‡ ‡––”ƒ•ƒ –‹‘•Ǥ ’”‘Œ‡ –‡†‡ƒ”‹‰•—Ž–‹’Ž‡•ǡ‘” †‹• ‘—–”ƒ–‡•ǡ •— Šƒ•ˆ—–—”‡ ƒ•ŠˆŽ‘™•ǡ ”‡“—‹”‡•–Š‡—•‡‘ˆ‡•–‹ƒ–‡• ˆƒ‹”˜ƒŽ—‡‘ˆ•Šƒ”‡• . i n d d 

VALUE

A 6 2  approach  OF    FINANCIAL ‹ —–”– ƒ‹— †‡ ”‡ƒ•‡‹–Š‡ ƒ”‹‘—• ‹• ‘—–”ƒ–‡ unobservable Significant ƒƒ ƒ‡‹Š‡˜”‰ˆ͵ͺ†‡ ”‡ƒ•‡‹–Š‡ ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡‘ˆ͵ǤͺΨ ƒ ƒ ›”ƒ–‡ †‡ ”‡ƒ•‡‹–Š‡ ͺǤ͵Ψ ƒ‰‡‘ˆͶǤ͵ΨȂ ‡˜‡”•‹‘ƒ”›”ƒ–‡ ‹ —–”– ƒ‰ˆ͵ͳ ͲͲ†‡ ”‡ƒ•‡‹–Š‡ ͳͲǤͲΨ ƒ‰‡‘ˆ͵ǤͳΨȂ ‹• ‘—–”ƒ–‡  INSTRUMENTS   input ͵‹–Š‡ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›Ǥ  •‡”˜ƒ„Ž‡‹’—–•—•‡†ƒ–’‡”‹‘†‡†‹‡ƒ•—”‹‰  Input ȋ ‘–‹—‡†Ȍ  value   ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ†‡ ”‡ƒ•‡‹ †‹• ‘—–”ƒ–‡™‘—Ž† ‹ ”‡ƒ•‡‹–Š‡ ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ‹ ”‡ƒ•‡‹ †‹• ‘—–”ƒ–‡™‘—Ž† and ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ†‡ ”‡ƒ•‡‹ †‹• ‘—–”ƒ–‡™‘—Ž† ‹ ”‡ƒ•‡‹–Š‡ ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ‹ ”‡ƒ•‡‹ †‹• ‘—–”ƒ–‡™‘—Ž† Inter key ƒ†‡ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ™‘—Ž†‰‡‡”ƒŽŽ›”‡•—Ž–‹ ‡š’‡ –‡†˜ƒ ƒ ›”ƒ–‡ ‹ ”‡ƒ•‡‹–Š‡ ƒ‹ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ™‘—Ž†‰‡‡”ƒŽŽ›”‡•—Ž–‹ ‡š’‡ –‡†˜ƒ ƒ ›”ƒ–‡ ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ†‡ ”‡ƒ•‡‹ ”‡˜‡”•‹‘ƒ”›”ƒ–‡™‘—Ž† ‹ ”‡ƒ•‡‹–Š‡ ˆƒ‹”˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ‹ ”‡ƒ•‡‹ ”‡˜‡”•‹‘ƒ”›”ƒ–‡™‘—Ž†   unobservable fair Ǧ relationship  value  measurement   inputs between    116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM 63 A ‡ ƒ••‡– ƒƒ‰‡‡– ƒ† ”‡‹•—”ƒ ‡ † ƒƒ‰‡‡– •‡”˜‹ ‡•Ǥ  ƒŽ•‘ ‡ƒ”• –‡”ƒŽ ˆ‹ƒ ‹ƒŽ ”‡’‘”–‹‰Ǥ Š‡ ˆ‘ŽŽ‘™‹‰ –‡– ƒ –‹˜‹–‹‡• ‘ˆ ‘™‡” ‘”’‘”ƒ–‹‘Ǥ – • ‘ˆˆ‡”‹‰ Ž‹ˆ‡ ‹•—”ƒ ‡ǡ Š‡ƒŽ–Š ‹•—”ƒ ‡ǡ  ‹ƒ ‹ƒŽ ƒ† ƒ”‰‡•ƒǤ Š‡•‡ ”‡’‘”–ƒ„Ž‡ ‹–•Ǣ ‘‹Žǡ ‰ƒ• ƒ† ƒŽ–‡”ƒ–‹˜‡ ‡‡”‰‹‡•Ǣ ƒ† ‹ ƒ–‹‘• ”‘—’ƒ•™‡ŽŽƒ•–Š‡”‡•—Ž–•‘ˆ–Š‡ ›™‹–Š†‹˜‡”•‹ˆ‹‡†‹–‡”‡•–•‹—”‘’‡Ǧ„ƒ•‡† ‹–‹‡• ‘ˆ ‘™‡” ‹ƒ ‹ƒŽ ƒ† ƒŽ•‘ ‹ Ž—†‡• ‘—” ‡•ǡ„—–’”‹ƒ”‹Ž›ˆ”‘ƒƒ‰‡‡–ˆ‡‡•ǡ ‘Ž—–‹‘•ˆ‘”‹†—•–”›Ǣ ‡‡–ǡƒ‰‰”‡‰ƒ–‡•ƒ† †ƒ’”‹ƒ”‹Ž›™‹–Š‹–Š‡ƒ†˜‹ ‡•‡‰‡–‘ˆ–Š‡ ‰•‡‰‡–ǯ• ‘–”‹„—–‹‘–‘‡–‡ƒ”‹‰•ǤŠ‡ ˜‡•‡”˜‹ ‡•Ǥ Ǥ ‘ˆ‡–‡ƒ”‹‰•”‡•—Ž–‹‰ˆ”‘–Š‡‹˜‡•–‡–•  ‡• ±Ž‹ ‡•†‡• ͹ ƒŽŽ±‡• ƒ† –‡‰”ƒ‡†Ǥ Š‹• •‡‰‡–•ǣ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ‹–‡†–ƒ–‡•ƒ†—”‘’‡Ǥ INFORMATION  Ž‹†ƒ–‹‘‡Ž‹‹ƒ–‹‘‡–”‹‡•Ǥ ƒ†‡‡”‰›ƒ†‡˜‹”‘‡–ƒŽ•‡”˜‹ ‡• POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 6 A

d d n i . 1 SEGMENTED v _ 5  0 - 1 1 - 17 6  1 0 2 _ ˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡•ƒ”‡–Ǥ ‡ƒ”•”‡˜‡—‡•ˆ”‘ƒ”ƒ‰‡‘ˆ• ™Š‹ Š ƒ”‡ Šƒ”‰‡† –‘ ‹–• —–—ƒŽ ˆ—†• ˆ‘” ‹˜‡•–‡– ƒ†˜‹•‘”› ƒ  ‹ƒ ‹ƒŽ‹•ƒˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡• ‘’ƒ›‘’‡”ƒ–‹‰‹ƒƒ ƒ”‰‡•ƒ‹•Š‡Ž†–Š”‘—‰Šƒ”Œ‘‹– ‘Ǥƒ”‰‡•ƒ‹•ƒŠ‘Ž†‹‰ ‘’ƒ ‹ˆ‡ ‘ ‹• ƒ ˆ‹ƒ ‹ƒŽ •‡”˜‹ ‡• Š‘Ž†‹‰ ‘’ƒ› ™‹–Š”‡–‹”‡‡– •—„•‹†‹ƒ”‹‡ ƒ† ‹˜‡•–‡– ƒƒ‰‡‡– •‡”˜‹ ‡• ƒ† ‡‰ƒ‰‡† ‹„—•‹‡••‡•’”‹ƒ”‹Ž›‹ƒƒ†ƒǡ–Š‡ –Š ‘’ƒ‹‡•ƒ –‹˜‡‹˜ƒ”‹‘—••‡ –‘”•ǣ‹‡”ƒŽ•Ǧ„ƒ•‡†•’‡ ‹ƒŽ–›• ‘ ”‡–‡Ǣ –‡•–‹‰ǡ ‹•’‡ –‹‘ ƒ† ‡”–‹ˆ‹ ƒ–‹‘Ǣ‡Ž‡ –”‹ ‹–›ǡƒ–—”ƒŽ‰ƒ•ǡ ™‹‡• ƒ† •’‹” ”‡˜‡—‡•ˆ”‘ˆ‡‡• Šƒ”‰‡†–‘‹–•—–—ƒŽˆ—†•ˆ‘”ƒ†‹‹•–”ƒ–‹ C C

P _ 1 ’”‘˜‹†‡•ƒ„”‹‡ˆ†‡• ”‹’–‹‘‘ˆ–Š‡–Š”‡‡”‡’‘”–ƒ„Ž‡‘’‡”ƒ–‹‰    NOTE Š‡ ‘”’‘”ƒ–‹‘ǯ• ”‡’‘”–ƒ„Ž‡ ‘’‡”ƒ–‹‰ •‡‰‡–••‡‰‡–• ƒ”‡ ”‡ˆŽ‡ – ‹ˆ‡ ‘ǡ ‘™‡” ‘”’‘”ƒ–‹‘ǯ•  ƒƒ‰‡‡– •–”— –—”‡ ƒ† ‹      Š‡ ‘Ž— ‡–‹–Ž‡† Dz‘”’‘”ƒ–‡dz ‹• ‘’”‹•‡† ‘•‘Ž‹†ƒ–‹‘‡Ž‹‹ƒ–‹‘‡–”‹‡•Ǥ ‘ˆ ‘”’‘”ƒ–‡ ƒ –‹˜ Š‡ ‘Ž— ‡–‹–Ž‡† Dz–Š‡”dz ‹•‹ Ž—†‡•–Š‡”‡•—Ž–•‘ˆ‘™‡”‡”‰› ‘’”‹•‡† ‘ˆ ‘”’‘”ƒ–‡ ƒ†“—ƒ”‡‹ –‘”‹ƒ‘— ƒ† ‹˜‡• ‘”’‘”ƒ–‹‘ǯ• ‘–”‘ŽŽ‡†’‘”–ˆ‘Ž‹‘ ‹˜‡•–‡–•ǡ ƒ‡Ž›ǡ Ž˜‡•–ǡ ‘Ž—ƒŽ•‘‹ Ž—†‡• ‘•‘ ‘–”‹„—–‹‘–‘‡–‡ƒ”‹‰•‘ˆ‡ƒ Š•‡‰‡–‹ Ž—†‡•–Š‡•Šƒ”‡ –Šƒ–‹ˆ‡ ‘ƒ† Šƒ˜‡‹‡ƒ Š‘–Š‡”Ǥ Š‡‘”’‘”ƒ–‹‘‡˜ƒŽ—ƒ–‡•–Š‡’‡”ˆ‘”ƒ ‡„ƒ•‡†‘–Š‡‘’‡”ƒ–‹ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A63 PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A64 C C

_ PART A Q

U POWER CORPORATION OF CANADA A T 1 _ ‘ƒ‡‡—• ʹ͵Ͳ͹͵Ȃȋ͵ ʹͻͲ ͳ ͳ͵ǡʹͺͲ ͵ͳͲ ͳʹǡͻ͹Ͳ ȋͻ͵Ȍ Ȃ ͹ʹ͵ ͳʹǡ͵ͶͲ ‘–ƒŽ”‡˜‡—‡• ‘‡–š• ͶͶ Ͳ ͷ ͸ͷ ȋͷȌ ͹Ͳ ͷ ͳʹ͵ ͷͳ͹ ͹ͻʹ Ȃ ȋͳͳ͹Ȍ ͳͺ ͳʹǡͷͺͳ Ȃ Ͷʹͷ ͸͵Ͷ ͳͲͷ Ͷͳ ͳʹǡͳͷ͸ ȋ͸ͺȌ ͹ͻʹ ͳǡͺͺʹ Ͷ ȋʹͻȌ ͳǡͻͺͺ ͻǡ͸͹ͺ ʹͶ ȋͳͺͺȌ Ȃ ȋ͵͸Ȍ ͹ǡͲͳͷ Ȃ Ȃ ͶͲ͹ Ȃ ͶǡͲ͵͸ Ȃ ʹͳͲ Ȃ ͳǡͺͺʹ  ͳǡͷͺͳ ȋ͵͹Ȍ ͻǡ͸͹ͺ ȋͷͳȌ ͷͳ͵ ʹ͵ ͸ͺͲ ͹ǡͲͳͷ ͵ ʹ͸ʹ Ȃ ͶǡͲ͹͵ Ȃ ͳͳǡ͸͹ʹ Ȃ A ͹ͺ ȋͶʹȌ Ȃ ͷ͸͸ Contribution  Ȃ  ‘‡–ƒš‡• Ȃ ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• Ȃ ͸͹ͻ ʹʹͺ Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–• Ȃ ͳǡʹͷͶ Ȃ ͶͶ ͳǡ͵ͷͲ ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–ƒŽ‡š’‡•‡• ͻǡ͸͹ͺ ‹ƒ ‹‰ Šƒ”‰‡• ͶǡͲ͹ͳ ƒ”‰‡• ͹ǡͲͳͷ ’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‘‹••‹‘• ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”•  Expenses    –Š‡””‡˜‡—‡• ‹ˆ‡ ‘ ‡‡‹ ‘‡ ˜‡•–‡–‹ ‘‡ǡ‡– ”‡‹—‹ ‘‡ǡ‡– Revenues Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸  CONTRIBUTION NOTE   ͷ ͸ ͳͺ ͹ȌͷͶ ͳʹ Ͷͷʹ ȋͳͳʹȌ ͷ͸Ͷ ȋ͹͵Ȍ ȋͳͺͺȌ ͳ͸ͻ ͸ͷ͸  E n ttributable g •‘‹–•ͳȂ ͳͺ Ͷ ͳͲȋȌȋͳͺʹ ȋʹȌ ȋͳͺͲȌ ȋͶȌ ȋͳͺͺȌ Ȃ ͳʹ ƒ••‘ ‹ƒ–‡• ‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ† ‘Ǧƒ– ’–Š”ŠŽ‡•ȂȂȂȂȂ ͵ͳ͵ Ͷͺ ͳ͵ ͵ͻͳ ȋͳʹʹȌ Ȃ ȋ͵Ȍ ͳ͹Ͳ ͵ͻͶ Ȃ ȋͶ͹Ȍ ȋʹ͸Ȍ ȋͳʹͶȌ Ȃ ȋ͸ͶȌ ͸͸ Ȃ ͳͲ͵ ʹ͹ͷ ͵ͺͳ Ȃ ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• ‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• ‘‡–š• ͸ʹͲ ȋͶ ͳȋͳȌ͸ͻͻ ȋͳͳͷȌ ͺͳͶ ȋ͸ͶȌ Ȃ ʹͳͲ ͸͸ͺ ƒ†‹ ‘‡–ƒš‡• ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡ 0 1 _ A P C C  64 _ 17   2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1  6 to   - to 1  1   - SEGMENTED net 0 5 _  v  TO 1 earnings . i n d  d NET

A 6 4   EARNINGS  INFORMATION  ͷ ͸ ͳͺ ͹ȌͷͶ ͳʹ Ͷͷʹ ȋͳͳʹȌ ͷ͸Ͷ ȋ͹͵Ȍ ȋͳͺͺȌ ͳ͸ͻ ͸ͷ͸ ȂȂȂȂ͵Ͷ͹͵Ͷ͹ȂȂ     ȋ ‘–‹—‡†Ȍ  ƒ ‘’”– —„Ǧ–‘–ƒ ‘”’‘”ƒ–‡ ‘™‡” ‹ƒ ‹ƒ Ž Ž –Š‡ ” ‘–ƒŽ Ȍ 116-05-12 2:02PM 6 - 0 5 - 1 2

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POWER CORPORATION OF CANADA 2 1 - 5 0 - 6 116-05-12 2:02 PM ‘–ƒŽ ‘–ƒŽ ‘–ƒŽ 65 A ” ” ”  –Š‡ Ž Ž ‘™‡” ‹ƒ ‹ƒ ‘™‡” ‹ƒ ‹ƒŽ ‘™‡” ‹ƒ ‹ƒŽ ‘”’‘”ƒ–‡ —„Ǧ–‘–ƒ ‘”’‘”ƒ–‡ —„Ǧ–‘–ƒŽ –Š‡ ‘”’‘”ƒ–‡ —„Ǧ–‘–ƒŽ –Š‡ ƒ ƒ ƒ Ȃ ͺ͹ͳ ͳ͹ͲǡʹͲͲ ͵ǡͳʹͳ ͳ͹͵ǡ͵ʹͳ ʹǡͷͶ͵ ʹ͹ ʹǡͺ͵ͷ ͳ͸Ͳ ʹǡͻͻͷ  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ŽŽ‘ ƒ–‹‘‘ˆ‰‘‘†™‹ŽŽƒ† ‡”–ƒ‹ ‘•‘Ž‹†ƒ–‹‘ƒ†Œ—•–‡–•Ǥ ȋ ‘–‹—‡†Ȍ        ȂȂ ȂȂȂʹͳ͸ʹͳ͸ ͹͸ͻ ʹͲ͵ ʹ͹ ȋͶ͵Ȍ ͻͷ͸ ȋͳͶȌ ͻͶʹ ‹ˆ‡ ‘  ƒ”‰‡• ‹ˆ‡ ‘  ƒ”‰‡•  INFORMATION  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER EARNINGS   5 NET  6 A

earnings d TO   d n  i . 1 net SEGMENTED  v  _  5 to  ͵ͻͻǡͻͻͶ ͳͶǡͳͲͶ ʹǡ͸ͳͲ ͻʹʹ Ͷͳ͹ǡ͸͵Ͳ ͷǡʹʹͻ Ͷʹʹǡͺͷͻ  ͵ͻͲǡ͵ͲͶ ͳͶǡͲ͵ͺ ʹǡͷͶ͵ ͻͲͻ ͶͲ͹ǡ͹ͻͶ Ͷǡͻʹͷ Ͷͳʹǡ͹ͳͻ   to 0  - ȏͳȐ ȏͳȐ 1 1 -   17 6 ASSETS  1  0 2 _ C ‘–ƒŽƒ••‡–•‘ˆ‹ˆ‡ ‘ƒ† ‘’‡”ƒ–‹‰•‡‰‡–•‹ Ž—†‡–Š‡ƒ C P ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡ ƒ†‹ ‘‡–ƒš‡• ͻͻ͵ ʹͷͺ Ȃ ȋͶʹȌ ͳǡʹͲͻ ȋͳͷȌ ͳǡͳͻͶ ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”•ƒ”–‹ ‹’ƒ–‹‰•Šƒ”‡Š‘Ž†‡”• Ȃ Ͷͷͻ ͵ͳͲ ͳʹͷ Ȃ ͹ͺ ͻ Ȃ ͳͺ ȋͳ͵Ȍ Ȃ ȋ͵ͲȌ ͷͺͲ ͵͹͸ Ȃ ȋͷȌ ȋʹʹȌ ͳ͵ ͷ͹ͷ ͵ͷͶ ͳ͵ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Ȍ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•’‘Ž‹ ›Š‘Ž†‡”• ͳ͸ͲǡͻͲ͵ ʹ͹͹ ͺǡͶʹ͸ Ȃ ʹǡ͸ͳͲ ͳͻͺǡͳͻͶ ͳͺ Ȃ ʹǡͻͲͷ ͳͶʹ Ȃ ͵ǡͲͶ͹ Ȃ ͳͻͺǡͳͻͶ Ȃ ͳͻͺǡͳͻͶ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Ȍ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• ͳͷͺǡͻͻ͹ ʹ͸ͷ ͺǡʹͶͻ Ȃ Ȃ ͺͶ͵ ͳ͸ͺǡͲͺͻ ʹǡͻͶ͸ ͳ͹ͳǡͲ͵ͷ ’‘Ž‹ ›Š‘Ž†‡”• ͳͻ͵ǡͲͲͳ Ȃ Ȃ Ȃ ͳͻ͵ǡͲͲͳ Ȃ ͳͻ͵ǡͲͲͳ ‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ† ƒ••‘ ‹ƒ–‡• Ȃ Ȃ ʹ͹ Ȃ ʹ͹ ȋʹȌ ʹͷ

_ ttributable 1  ͹͸ͻ ʹͲ͵ ʹ͹ ȋͶ͵Ȍ ͻͷ͸ ȋͳͶȌ ͻͶʹ ˜‡•–‡†ƒ••‡–•ȋ‹ Ž—†‹‰ ƒ•Š ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† –Š‡”ƒ••‡–• –ƒ‰‹„Ž‡ƒ••‡–•ƒ†‰‘‘†™‹ŽŽ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—† ‘–ƒŽƒ••‡–• ȏͳȐ ͳͲǡͶͲͻ Ͷǡ͹ͺͶ ͵Ͳǡʹͳͳ Ȃ ͺͻͶ Ȃ Ȃ ͳͷǡͳͻ͵ ͵͵ ͹͹͹ ͵ͳǡͳ͵ͺ ͳͷǡͻ͹Ͳ ͳǡͳͺͻ ͵ʹǡ͵ʹ͹  ƒ” Š͵ͳǡʹͲͳ͸ ˜‡•–‡†ƒ••‡–•ȋ‹ Ž—†‹‰ ƒ•Š ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡†   ‡ ‡„‡”͵ͳǡʹͲͳͷ  ‘‡–ƒš‡•Contribution A  TOTAL ʹʹͶ ͷͷ–Š‡”ƒ••‡–• –ƒ‰‹„Ž‡ƒ••‡–•ƒ†‰‘‘†™‹ŽŽ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—† ‘–ƒŽƒ••‡–• Ȃ ͳͲǡʹ͵Ͷ ͳ Ͷǡͺͳͳ ʹͺͲ ʹ͹ǡͺͲ͹ Ȃ ȋ͵Ȍ ͻ͹ͺ ʹ͹͹ Ȃ Ȃ ͳͷǡͲͶͷ ͵ͻ ͹͹ͳ ʹͺǡͺʹͶ ͳͷǡͺͳ͸ ͳǡͲͶͺ ʹͻǡͺ͹ʹ Expenses ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”•‘‹••‹‘•’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‹ƒ ‹‰ Šƒ”‰‡• ͻǡͺͺͻ‘–ƒŽ‡š’‡•‡•ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ͳǡʹͲͷ ȂŠƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–• ʹͳ͵ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• Ȃ ͷͳͷ Ȃ ͹͹ ͳͳǡ͸ͺ͸ Ȃ ʹ͸͹ ͳʹ ͻͻ͵ ʹ͵ ͷͲ͵ ͻǡͺͺͻ ͳǡͶ͵Ͳ ʹͷͺ Ȃ ʹ͸͹ Ȃ Ȃ Ȃ ȋͶͷȌ ͳǡ͸ͻ͹ ͻǡͺͺͻ ʹ͹ ȋʹͻȌ Ͷ ͹͵͹ ͳʹǡͳ͸Ͳ ȋͶʹȌ ͳͲͶ ʹ͹ͺ ͳǡʹ͵͸ Ȃ ͳʹǡͶ͵ͺ ͳͳ ȋͳ͹Ȍ ͹͵͹ ͳͳͷ ͳǡʹͳͻ  NOTE CONTRIBUTION  Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷRevenues ”‡‹—‹ ‘‡ǡ‡– ˜‡•–‡–‹ ‘‡ǡ‡– ‡‡‹ ‘‡ ‹ˆ‡ ‘–Š‡””‡˜‡—‡•     ͸ǡͻ͵ʹ ƒ”‰‡• ͶǡͶͺͻ ͷͷ Ȃ ͳǡʹͷͺ ͹Ͳ͸ Ȃ Ȃ  ȋʹͳȌ Ȃ Ȃ Ͷǡͷʹ͵ ͸ǡͻ͵ʹ ȋͷͲȌ Ͷ͹ ͳǡͻͳͶ Ȃ Ͷǡͷ͹Ͳ ͸ǡͻ͵ʹ Ȃ ͳǡͻͳͶ ‘–ƒŽ”‡˜‡—‡• ͳʹǡ͸͹ͻ ͹͸ͳ Ȃ ȋ͹ͳȌ ͳ͵ǡ͵͸ͻ ʹ͸͵ ͳ͵ǡ͸͵ʹ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng01_PCC_2016-11-05_v1.indd A65 Page intentionally left blank.

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PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:00 PM 1 B nancial position and the content of forward- er materially from fi nancial performance, FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER the periods ended on certainows as at and for dates and to present PART B Power Financial Corporation Financial Power expectations of the subsidiary current ect the as set forth Forward- therein. looking statements, the material factors and assumptions that were applied looking statements, the material factors and assumptions that were looking statements are provided for the purposes of assisting the reader in in the purposes of assisting the reader for provided looking statements are will not prove to be accurate, that assumptions may not be correct and that not be correct to be accurate, that assumptions may will not prove PAGE B 28 PAGE PAGE B 2 PAGE that could cause actual results to diff that could cause actual results on forward-looking statements. to put undue reliance in making the forward-looking statements, and the subsidiary’s in making the forward-looking policy for information about the subsidiary’sinformation expectations and management’s current uncertainties that may be general or specific and which give rise to the uncertainties rise to the be general or specific and which give that may statements, please see the attached updating the content of forward-looking understanding the subsidiary’s fi fact, are forward-looking statements based on certain forward-looking assumptions and fact, are possibility that expectations, forecasts, predictions, projections or conclusions or conclusions projections predictions, possibility that expectations, forecasts, not and is cautioned to consider these factors and assumptions carefully reader refl is cautioned that such statements and the reader to the future plans relating other purposes. for not be appropriate may documents, including the section entitled Forward-Looking Statements. The Statements. documents, including the section entitled Forward-Looking cash fl objectives, strategic goals and priorities will not be achieved. strategic goals and priorities will not be achieved. objectives, For further by the subsidiary provided as to the material factors information By its nature, forward-looking information is subject to inherent risks and risks and is subject to inherent information forward-looking By its nature, documents prepared and publicly disclosed by such subsidiary. Certain disclosed by such subsidiary. and publicly documents prepared POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Financial Statements and Notes Statements Financial Management’s Discussion and Analysis Discussion Management’s statements in the attached documents, other than statements of historical statements in the attached documents, The attached documents concerning Power Financial Corporation are are Financial Corporation Power The attached documents concerning 1 B

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ C F P _ 2 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B1 POWERFINANCIALCORPORATION MANAGEMENT’SDISCUSSIONANDANALYSIS

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     ǡ  Ǥ Š‡ ˆ‘ŽŽ‘™‹‰ •‡–• ˆ‘”–Š ƒƒ‰‡‡–ǯ• †‹• —••‹‘ ƒ† ƒƒŽ›•‹• ȋƬȌ ‘ˆ –Š‡ —ƒ—†‹–‡† ‹–‡”‹ ‘†‡•‡† ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ ‘†‹–‹‘ƒ†ˆ‹ƒ ‹ƒŽ’‡”ˆ‘”ƒ ‡‘ˆ‘™‡” ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ȋ‘™‡” ‹ƒ ‹ƒŽ‘” –Š‡‘”’‘”ƒ–‹‘Ȍȋǣ Ȍǡƒ’—„Ž‹  ‘”’‘”ƒ–‹‘ǡˆ‘”–Š‡–Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡʹͲͳ͸Ǥ Š‹• †‘ —‡–•Š‘—Ž†„‡”‡ƒ†‹ ‘Œ— –‹‘™‹–Š–Š‡—ƒ—†‹–‡†‹–‡”‹ ‘†‡•‡† ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–• ‘ˆ ‘™‡” ‹ƒ ‹ƒŽ ƒ† ‘–‡• –Š‡”‡–‘ ˆ‘” –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ ȋ–Š‡ –‡”‹ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡–•Ȍǡ–Š‡Ƭˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷȋ–Š‡ʹͲͳͷ—ƒŽƬȌǡ ƒ†–Š‡ƒ—†‹–‡† ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ƒ†‘–‡•–Š‡”‡–‘ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷȋ–Š‡ ʹͲͳͷ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ –ƒ–‡‡–•ȌǤ ††‹–‹‘ƒŽ ‹ˆ‘”ƒ–‹‘ ”‡Žƒ–‹‰ –‘ ‘™‡” ‹ƒ ‹ƒŽǡ ‹ Ž—†‹‰ ‹–• —ƒŽ ˆ‘”ƒ–‹‘ ‘”ǡƒ›„‡ˆ‘—†‘–Š‡‘”’‘”ƒ–‹‘ǯ•™‡„•‹–‡ƒ–™™™Ǥ’‘™‡”ˆ‹ƒ ‹ƒŽǤ ‘ƒ†‘ ƒ–™™™Ǥ•‡†ƒ”Ǥ ‘Ǥ

PART B PART B Ǧ   ǹ ‡”–ƒ‹•–ƒ–‡‡–•‹–Š‹•Ƭǡ‘–Š‡”–Šƒ•–ƒ–‡‡–•‘ˆŠ‹•–‘”‹ ƒŽˆƒ –ǡƒ”‡ˆ‘”™ƒ”†ǦŽ‘‘‹‰•–ƒ–‡‡–•„ƒ•‡†‘ ‡”–ƒ‹ƒ••—’–‹‘•ƒ†”‡ˆŽ‡ ––Š‡‘”’‘”ƒ–‹‘ǯ• —””‡–‡š’‡ –ƒ–‹‘•ǡ‘”™‹–Š”‡•’‡ ––‘†‹• Ž‘•—”‡”‡‰ƒ”†‹‰–Š‡‘”’‘”ƒ–‹‘ǯ•’—„Ž‹ •—„•‹†‹ƒ”‹‡•ǡ”‡ˆŽ‡ – •— Š •—„•‹†‹ƒ”‹‡•ǯ †‹• Ž‘•‡† —””‡– ‡š’‡ –ƒ–‹‘•Ǥ ‘”™ƒ”†ǦŽ‘‘‹‰ •–ƒ–‡‡–• ƒ”‡ ’”‘˜‹†‡† ˆ‘” –Š‡ ’—”’‘•‡• ‘ˆ ƒ••‹•–‹‰ –Š‡ ”‡ƒ†‡” ‹ —†‡”•–ƒ†‹‰ –Š‡ ‘”’‘”ƒ–‹‘ǯ• ˆ‹ƒ ‹ƒŽ ’‡”ˆ‘”ƒ ‡ǡ ˆ‹ƒ ‹ƒŽ ’‘•‹–‹‘ ƒ† ƒ•ŠˆŽ‘™•ƒ•ƒ–ƒ†ˆ‘”–Š‡’‡”‹‘†•‡†‡†‘ ‡”–ƒ‹†ƒ–‡•ƒ†–‘’”‡•‡–‹ˆ‘”ƒ–‹‘ƒ„‘—– ƒƒ‰‡‡–ǯ• —””‡– ‡š’‡ –ƒ–‹‘• ƒ† ’Žƒ• ”‡Žƒ–‹‰ –‘ –Š‡ ˆ—–—”‡ ƒ† –Š‡ ”‡ƒ†‡” ‹• ƒ—–‹‘‡† –Šƒ– •— Š •–ƒ–‡‡–• ƒ› ‘– „‡ƒ’’”‘’”‹ƒ–‡ˆ‘”‘–Š‡” POWER FINANCIAL CORPORATION ’—”’‘•‡•Ǥ Š‡•‡ •–ƒ–‡‡–• ƒ› ‹ Ž—†‡ǡ ™‹–Š‘—– Ž‹‹–ƒ–‹‘ǡ •–ƒ–‡‡–• ”‡‰ƒ”†‹‰ –Š‡ ‘’‡”ƒ–‹‘•ǡ „—•‹‡••ǡ ˆ‹ƒ ‹ƒŽ ‘†‹–‹‘ǡ ‡š’‡ –‡† ˆ‹ƒ ‹ƒŽ ”‡•—Ž–•ǡ ’‡”ˆ‘”ƒ ‡ǡ’”‘•’‡ –•ǡ‘’’‘”–—‹–‹‡•ǡ’”‹‘”‹–‹‡•ǡ–ƒ”‰‡–•ǡ‰‘ƒŽ•ǡ‘‰‘‹‰‘„Œ‡ –‹˜‡•ǡ•–”ƒ–‡‰‹‡•ƒ†‘—–Ž‘‘‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ǡƒ•™‡ŽŽƒ• –Š‡ ‘—–Ž‘‘ ˆ‘” ‘”–Š ‡”‹ ƒ ƒ† ‹–‡”ƒ–‹‘ƒŽ ‡ ‘‘‹‡• ˆ‘” –Š‡ —””‡–ˆ‹• ƒŽ›‡ƒ”ƒ†•—„•‡“—‡–’‡”‹‘†•Ǥ ‘”™ƒ”†ǦŽ‘‘‹‰ •–ƒ–‡‡–• ‹ Ž—†‡ •–ƒ–‡‡–• –Šƒ– ƒ”‡ ’”‡†‹ –‹˜‡ ‹ ƒ–—”‡ǡ †‡’‡† —’‘ ‘” ”‡ˆ‡” –‘ˆ—–—”‡‡˜‡–•‘” ‘†‹–‹‘•ǡ‘”‹ Ž—†‡™‘”†••— Šƒ•Dz‡š’‡ –•dzǡ Dzƒ–‹ ‹’ƒ–‡•dzǡ Dz’Žƒ•dzǡ Dz„‡Ž‹‡˜‡•dzǡDz‡•–‹ƒ–‡•dzǡDz•‡‡•dzǡDz‹–‡†•dzǡDz–ƒ”‰‡–•dzǡDz’”‘Œ‡ –•dzǡDzˆ‘”‡ ƒ•–•dz‘”‡‰ƒ–‹˜‡˜‡”•‹‘•–Š‡”‡‘ˆƒ†‘–Š‡”•‹‹Žƒ”‡š’”‡••‹‘•ǡ‘”ˆ—–—”‡‘” ‘†‹–‹‘ƒŽ ˜‡”„••— Šƒ•Dzƒ›dzǡDz™‹ŽŽdzǡDz•Š‘—Ž†dzǡDz™‘—Ž†dzƒ†Dz ‘—Ž†dzǤ › ‹–• ƒ–—”‡ǡ –Š‹• ‹ˆ‘”ƒ–‹‘ ‹• •—„Œ‡ – –‘ ‹Š‡”‡– ”‹•• ƒ† — ‡”–ƒ‹–‹‡• –Šƒ– ƒ› „‡ ‰‡‡”ƒŽ ‘” •’‡ ‹ˆ‹  ƒ† ™Š‹ Š ‰‹˜‡ ”‹•‡ –‘ –Š‡ ’‘••‹„‹Ž‹–› –Šƒ– ‡š’‡ –ƒ–‹‘•ǡˆ‘”‡ ƒ•–•ǡ’”‡†‹ –‹‘•ǡ’”‘Œ‡ –‹‘•‘” ‘ Ž—•‹‘•™‹ŽŽ‘–’”‘˜‡–‘„‡ƒ —”ƒ–‡ǡ–Šƒ–ƒ••—’–‹‘•ƒ›‘–„‡ ‘””‡ –ƒ†–Šƒ–‘„Œ‡ –‹˜‡•ǡ•–”ƒ–‡‰‹  ‰‘ƒŽ•ƒ†’”‹‘”‹–‹‡•™‹ŽŽ‘–„‡ƒ Š‹‡˜‡†Ǥ˜ƒ”‹‡–›‘ˆˆƒ –‘”•ǡƒ›‘ˆ™Š‹ Šƒ”‡„‡›‘†–Š‡‘”’‘”ƒ–‹‘ǯ•ƒ†‹–••—„•‹†‹ƒ”‹‡•ǯ ‘–”‘Žǡƒˆˆ‡ ––Š‡‘’‡”ƒ–‹‘•ǡ ’‡”ˆ‘”ƒ ‡ ƒ† ”‡•—Ž–• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ ƒ† ‹–• •—„•‹†‹ƒ”‹‡•ƒ†–Š‡‹”„—•‹‡••‡•ǡƒ† ‘—Ž† ƒ—•‡ƒ –—ƒŽ”‡•—Ž–•–‘†‹ˆˆ‡” ƒ–‡”‹ƒŽŽ› ˆ”‘ —””‡– ‡š’‡ –ƒ–‹‘•‘ˆ‡•–‹ƒ–‡†‘”ƒ–‹ ‹’ƒ–‡†‡˜‡–•‘””‡•—Ž–•ǤŠ‡•‡ ˆƒ –‘”• ‹ Ž—†‡ǡ „—– ƒ”‡ ‘– Ž‹‹–‡† –‘ǣ –Š‡ ‹’ƒ – ‘” —ƒ–‹ ‹’ƒ–‡† ‹’ƒ – ‘ˆ ‰‡‡”ƒŽ ‡ ‘‘‹ ǡ ’‘Ž‹–‹ ƒŽ ƒ† ƒ”‡– ˆƒ –‘”• ‹ ‘”–Š ‡”‹ ƒ ƒ† ‹–‡”ƒ–‹‘ƒŽŽ›ǡ ‹–‡”‡•– ƒ† ˆ‘”‡‹‰ ‡š Šƒ‰‡ ”ƒ–‡•ǡ ‰Ž‘„ƒŽ ‡“—‹–› ƒ† ƒ’‹–ƒŽ ƒ”‡–•ǡ ƒƒ‰‡‡–‘ˆƒ”‡–Ž‹“—‹†‹–›ƒ†ˆ—†‹‰”‹••ǡ Šƒ‰‡•‹ƒ ‘—–‹‰’‘Ž‹ ‹‡•ƒ†‡–Š‘†•—•‡†–‘”‡’‘”–ˆ‹ƒ ‹ƒŽ ‘†‹–‹‘ȋ‹ Ž—†‹‰— ‡”–ƒ‹–‹‡• ƒ••‘ ‹ƒ–‡† ™‹–Š ”‹–‹ ƒŽ ƒ ‘—–‹‰ ƒ••—’–‹‘• ƒ† ‡•–‹ƒ–‡•Ȍǡ –Š‡ ‡ˆˆ‡ – ‘ˆ ƒ’’Ž›‹‰ ˆ—–—”‡ ƒ ‘—–‹‰ Šƒ‰‡•ǡ „—•‹‡•• ‘’‡–‹–‹‘ǡ ‘’‡”ƒ–‹‘ƒŽ ƒ† ”‡’—–ƒ–‹‘ƒŽ”‹••ǡ–‡ Š‘Ž‘‰‹ ƒŽ Šƒ‰‡ǡ Šƒ‰‡•‹‰‘˜‡”‡–”‡‰—Žƒ–‹‘ƒ†Ž‡‰‹•Žƒ–‹‘ǡ Šƒ‰‡•‹–ƒšŽƒ™•ǡ—‡š’‡ –‡†Œ—†‹ ‹ƒŽ‘””‡‰—Žƒ–‘”›’”‘ ‡‡†‹‰•ǡ ƒ–ƒ•–”‘’Š‹  ‡˜‡–•ǡ –Š‡ ‘”’‘”ƒ–‹‘ǯ• ƒ† ‹–• •—„•‹†‹ƒ”‹‡•ǯ ƒ„‹Ž‹–› –‘ ‘’Ž‡–‡ •–”ƒ–‡‰‹  –”ƒ•ƒ –‹‘•ǡ ‹–‡‰”ƒ–‡ ƒ “—‹•‹–‹‘• ƒ† ‹’Ž‡‡– ‘–Š‡” ‰”‘™–Š •–”ƒ–‡‰‹‡•ǡƒ†–Š‡‘”’‘”ƒ–‹‘ǯ•ƒ†‹–••—„•‹†‹ƒ”‹‡•ǯ•— ‡••‹ƒ–‹ ‹’ƒ–‹‰ƒ†ƒƒ‰‹‰–Š‡ˆ‘”‡‰‘‹‰ˆƒ –‘”•Ǥ Š‡”‡ƒ†‡”‹• ƒ—–‹‘‡†–‘ ‘•‹†‡”–Š‡•‡ƒ†‘–Š‡”ˆƒ –‘”•ǡ— ‡”–ƒ‹–‹‡•ƒ†’‘–‡–‹ƒŽ‡˜‡–• ƒ”‡ˆ—ŽŽ›ƒ†‘––‘’—–—†—‡”‡Ž‹ƒ ‡‘ˆ‘”™ƒ”†ǦŽ‘‘‹‰ •–ƒ–‡‡–•Ǥ ˆ‘”ƒ–‹‘ ‘–ƒ‹‡†‹ˆ‘”™ƒ”†ǦŽ‘‘‹‰•–ƒ–‡‡–•‹•„ƒ•‡†—’‘ ‡”–ƒ‹ƒ–‡”‹ƒŽƒ••—’–‹‘•–Šƒ–™‡”‡ƒ’’Ž‹‡†‹†”ƒ™‹‰ƒ ‘ Ž—•‹‘‘” ƒ‹‰ƒˆ‘”‡ ƒ•–‘”’”‘Œ‡ –‹‘ǡ‹ Ž—†‹‰ƒƒ‰‡‡–ǯ•’‡” ‡’–‹‘•‘ˆŠ‹•–‘”‹ ƒŽ–”‡†•ǡ —””‡– ‘†‹–‹‘•ƒ†‡š’‡ –‡†ˆ—–—”‡†‡˜‡Ž‘’‡–•ǡƒ•™‡ŽŽƒ• ‘–Š‡” ‘•‹†‡”ƒ–‹‘•–Šƒ–ƒ”‡„‡Ž‹‡˜‡†–‘„‡ƒ’’”‘’”‹ƒ–‡‹–Š‡ ‹” —•–ƒ ‡•ǡ‹ Ž—†‹‰–Šƒ––Š‡Ž‹•–‘ˆˆƒ –‘”•‹–Š‡’”‡˜‹‘—•’ƒ”ƒ‰”ƒ’Šǡ ‘ŽŽ‡ –‹˜‡Ž›ǡƒ”‡‘– ‡š’‡ –‡†–‘Šƒ˜‡ƒƒ–‡”‹ƒŽ‹’ƒ –‘–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ǤŠ‹Ž‡–Š‡‘”’‘”ƒ–‹‘ ‘•‹†‡”•–Š‡•‡ƒ••—’–‹‘•–‘„‡”‡ƒ•‘ƒ„Ž‡„ƒ•‡†‘ ‹ˆ‘”ƒ–‹‘ —””‡–Ž›ƒ˜ƒ‹Žƒ„Ž‡–‘ƒƒ‰‡‡–ǡ–Š‡›ƒ›’”‘˜‡–‘„‡‹ ‘””‡ –Ǥ –Š‡”–Šƒƒ••’‡ ‹ˆ‹ ƒŽŽ›”‡“—‹”‡†„›ƒ’’Ž‹ ƒ„Ž‡ƒƒ†‹ƒŽƒ™ǡ–Š‡‘”’‘”ƒ–‹‘—†‡”–ƒ‡•‘‘„Ž‹‰ƒ–‹‘–‘—’†ƒ–‡ƒ›ˆ‘”™ƒ”†ǦŽ‘‘‹‰•–ƒ–‡‡––‘”‡ˆŽ‡ – ‡˜‡–• ‘” ‹” —•–ƒ ‡• ƒˆ–‡” –Š‡ †ƒ–‡ ‘ ™Š‹ Š•— Š•–ƒ–‡‡–‹•ƒ†‡ǡ‘”–‘”‡ˆŽ‡ ––Š‡‘ —””‡ ‡‘ˆ—ƒ–‹ ‹’ƒ–‡†‡˜‡–•ǡ™Š‡–Š‡” ƒ• ƒ ”‡•—Ž– ‘ˆ ‡™ ‹ˆ‘”ƒ–‹‘ǡˆ—–—”‡‡˜‡–•‘””‡•—Ž–•ǡ‘”‘–Š‡”™‹•‡Ǥ ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘ƒ„‘—––Š‡”‹••ƒ†— ‡”–ƒ‹–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ•„—•‹‡••ƒ†ƒ–‡”‹ƒŽˆƒ –‘”•‘”ƒ••—’–‹‘•‘™Š‹ Š‹ˆ‘”ƒ–‹‘ ‘–ƒ‹‡†‹ ˆ‘”™ƒ”†ǦŽ‘‘‹‰•–ƒ–‡‡–•‹•„ƒ•‡†‹•’”‘˜‹†‡†‹‹–•†‹• Ž‘•—”‡ƒ–‡”‹ƒŽ•ǡ‹ Ž—†‹‰–Š‹•Ƭƒ†‹–•‘•–”‡ ‡–—ƒŽ ˆ‘”ƒ–‹‘ ‘”ǡˆ‹Ž‡†™‹–Š–Š‡ •‡ —”‹–‹‡•”‡‰—Žƒ–‘”›ƒ—–Š‘”‹–‹‡•‹ƒƒ†ƒƒ†ƒ˜ƒ‹Žƒ„Ž‡ƒ–™™™Ǥ•‡†ƒ”Ǥ ‘Ǥ

Š‡ˆ‘ŽŽ‘™‹‰ƒ„„”‡˜‹ƒ–‹‘•ƒ”‡—•‡†–Š”‘—‰Š‘—––Š‹•”‡’‘”–ǣ—”‘‡š–”—••‡Ž•ȋȌǢ—”‘‡š–ƒ”‹•ȋȌǢ ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ—‹–› •—”ƒ ‡ ‘’ƒ›ȋ ”‡ƒ–Ǧ‡•– ‹ƒ ‹ƒŽ‘” ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ—‹–›ȌǢ ”‡ƒ–Ǧ‡•–‹ˆ‡ ‘  Ǥȋ‹ˆ‡ ‘ȌǢ ”‘—’‡”—š‡ŽŽ‡•ƒ„‡”–ȋ ȌǢ  ‹ƒ ‹ƒŽ  Ǥ ȋ ‘”  ‹ƒ ‹ƒŽȌǢ –‡”ƒ–‹‘ƒŽ ‹ƒ ‹ƒŽ‡’‘”–‹‰–ƒ†ƒ”†•ȋ ȌǢ ˜‡•–‘”• ”‘—’  Ǥȋ ˜‡•–‘”• ”‘—’ȌǢ ”‹•Š‹ˆ‡ ”‘—’‹‹–‡†ȋ ”‹•Š ‹ˆ‡ȌǢƒˆƒ”‰‡ȋƒˆƒ”‰‡ȌǢƒˆƒ”‰‡ ‘Ž ‹–†ȋƒˆƒ”‰‡ ‘Ž ‹ȌǢ‘†‘‹ˆ‡ •—”ƒ ‡‘’ƒ›ȋ‘†‘‹ˆ‡ȌǢƒ ‡œ‹‡ ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ ȋƒ ‡œ‹‡ȌǢƒ”‰‡•ƒ ‘Ž†‹‰ȋƒ”‰‡•ƒȌǢƒ”Œ‘‹– ‘ǤǤȋƒ”Œ‘‹– ‘ȌǢ‘™‡”‘”’‘”ƒ–‹‘‘ˆƒƒ†ƒȋ‘™‡”‘”’‘”ƒ–‹‘ȌǢ—–ƒ ˜‡•–‡–•ǡ ȋ—–ƒȌǢ ȋ ȌǢ—‡œ˜‹”‘‡‡–‘’ƒ›ȋ—‡œ˜‹”‘‡‡–ȌǢ ™‹•• –‘  š Šƒ‰‡ ȋ ȌǢ Š‡ ƒƒ†ƒ ‹ˆ‡ ••—”ƒ ‡ ‘’ƒ›ȋƒƒ†ƒ‹ˆ‡ȌǢŠ‡ ”‡ƒ–Ǧ‡•–‹ˆ‡••—”ƒ ‡‘’ƒ›ȋ ”‡ƒ–Ǧ‡•–‹ˆ‡ȌǢ‘–ƒŽȋ‘–ƒŽȌǢ‡ƒŽ–Š•‹’Ž‡ ‹ƒ ‹ƒŽ‘”’Ǥȋ‡ƒŽ–Š•‹’Ž‡ȌǤ

B 2 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B2B2 116-05-126-05-12 2:002:00 PMPM      

ORGANIZATIONOFTHEINTERIMMD&A

 ƒ‰‡  ƒ‰‡ ˜‡”˜‹‡™ ͵ ‹ƒ ‹ƒŽ •–”—‡–• ʹʹ ‹ˆ‡ ‘ Ͷ ˆˆǦƒŽƒ ‡Š‡‡–””ƒ‰‡‡–• ʹ͵  ‹ƒ ‹ƒŽ Ͷ ‘–‹‰‡–‹ƒ„‹Ž‹–‹‡• ʹ͵ ƒ”‰‡•ƒƒ†  ͷ ‘‹–‡–•ƒ†‘–”ƒ –—ƒŽ„Ž‹‰ƒ–‹‘• ʹ͵ ƒ•‹•‘ˆ”‡•‡–ƒ–‹‘ ͷ  ‘‡–ƒš‡• ʹͶ

‘Ǧ  ‹ƒ ‹ƒŽ‡ƒ•—”‡•ƒ†”‡•‡–ƒ–‹‘ ͹ ”ƒ•ƒ –‹‘•™‹–Š‡Žƒ–‡†ƒ”–‹‡• ʹͶ CORPORATION FINANCIAL POWER ‡•—Ž–•‘ˆ‘™‡” ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ ͺ —ƒ”›‘ˆ”‹–‹ ƒŽ ‘—–‹‰•–‹ƒ–‡•ƒ† —†‰‡–• ʹͶ ‹ƒ ‹ƒŽ‘•‹–‹‘ ͳͶ Šƒ‰‡•‹ ‘—–‹‰‘Ž‹ ‹‡• ʹͷ PART BPART ƒ•Š Ž‘™• ͳ͹ —–—”‡ ‘—–‹‰Šƒ‰‡• ʹͷ ƒ’‹–ƒŽƒƒ‰‡‡– ͳͻ –‡”ƒŽ‘–”‘Ž‘˜‡” ‹ƒ ‹ƒŽ‡’‘”–‹‰ʹ͸ ‹•ƒƒ‰‡‡– ʹͳ —ƒ”›‘ˆ—ƒ”–‡”Ž›‡•—Ž–• ʹ͹



OVERVIEW ‘™‡” ‹ƒ ‹ƒŽǡ ƒ •—„•‹†‹ƒ”› ‘ˆ ‘™‡” ‘”’‘”ƒ–‹‘ǡ ‹• ƒ †‹˜‡”•‹ˆ‹‡† ƒƒ‰‡‡– ƒ† Š‘Ž†‹‰ ‘’ƒ› ™‹–Š •—„•–ƒ–‹ƒŽ ‘’‡”ƒ–‹‘• ‹ –Š‡ ˆ‹ƒ ‹ƒŽ •‡”˜‹ ‡• •‡ –‘” ‹ ƒƒ†ƒǡ –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡ǡ –Š”‘—‰Š ‹–• ‘–”‘ŽŽ‹‰ ‹–‡”‡•–• ‹ ‹ˆ‡ ‘ ƒ† Ǥ ‘™‡” ‹ƒ ‹ƒŽ ƒŽ•‘ Š‘Ž†• Œ‘‹–Ž› ™‹–Š –Š‡ ”°”‡ ”‘—’ ‘ˆ ‡Ž‰‹—ǡ ƒ ‘–”‘ŽŽ‹‰‹–‡”‡•–‹ƒ”‰‡•ƒǡƒŠ‘Ž†‹‰ ‘’ƒ›™Š‹ Šˆ‘ —•‡•‘ƒŽ‹‹–‡†—„‡”‘ˆ•‹‰‹ˆ‹ ƒ–ƒ†•–”ƒ–‡‰‹  ‘”‡Š‘Ž†‹‰•ǡŠ‡Ž†–Š”‘—‰Š‹–••—„•‹†‹ƒ”›ǡ Ǥ‹ˆ‡ ‘ȋǣ Ȍ ƒ†  ȋǣ Ȍ ƒ”‡ ’—„Ž‹  ‘’ƒ‹‡• Ž‹•–‡† ‘ –Š‡ ‘”‘–‘ –‘  š Šƒ‰‡Ǥ ƒ”‰‡•ƒ ‹• ƒ ’—„Ž‹  ‘’ƒ›Ž‹•–‡†‘–Š‡™‹••–‘ š Šƒ‰‡ ȋ ǣ ȌǤ Š‡‘”’‘”ƒ–‹‘ǯ•Ƭ ‘•‹•–•‘ˆˆ‘—”’ƒ”–•ǣ

 ƒ”–᪫‘™‡” ‹ƒ ‹ƒŽǡ’”‡•‡–‡†‘ƒ ‘•‘Ž‹†ƒ–‡†ƒ†‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•Ǣ

 ƒ”–᪫‹ˆ‡ ‘ǯ•‹–‡”‹Ƭǡƒ•’”‡’ƒ”‡†ƒ††‹• Ž‘•‡†„›‹ˆ‡ ‘‹ƒ ‘”†ƒ ‡™‹–Šƒ’’Ž‹ ƒ„Ž‡•‡ —”‹–‹‡• Ž‡‰‹•Žƒ–‹‘ǡƒ†™Š‹ Š‹•ƒŽ•‘ƒ˜ƒ‹Žƒ„Ž‡‡‹–Š‡”†‹”‡ –Ž›ˆ”‘ȋ™™™Ǥ•‡†ƒ”Ǥ ‘Ȍ‘”ˆ”‘‹ˆ‡ ‘ǯ•™‡„•‹–‡ ȋ™™™Ǥ‰”‡ƒ–™‡•–Ž‹ˆ‡ ‘Ǥ ‘ȌǢ

 ƒ”–᪫ ǯ•‹–‡”‹Ƭǡƒ•’”‡’ƒ”‡†ƒ††‹• Ž‘•‡†„› ‹ƒ ‘”†ƒ ‡™‹–Šƒ’’Ž‹ ƒ„Ž‡•‡ —”‹–‹‡• Ž‡‰‹•Žƒ–‹‘ǡƒ†™Š‹ Š‹•ƒŽ•‘ƒ˜ƒ‹Žƒ„Ž‡‡‹–Š‡”†‹”‡ –Ž›ˆ”‘ȋ™™™Ǥ•‡†ƒ”Ǥ ‘Ȍ‘”ˆ”‘ ǯ•™‡„•‹–‡ ȋ™™™Ǥ‹‰ˆ‹ƒ ‹ƒŽǤ ‘ȌǢ

 ƒ”–᪫ƒ”‰‡•ƒǯ•ˆ‹ƒ ‹ƒŽ”‡•—Ž–•ǡ†‡”‹˜‡†ˆ”‘’—„Ž‹ Ž›†‹• Ž‘•‡†‹ˆ‘”ƒ–‹‘ǡƒ•‹••—‡†„›ƒ”‰‡•ƒ‹‹–• ‡†Ǧ‘ˆǦ“—ƒ”–‡”’”‡••”‡Ž‡ƒ•‡–Šƒ–†‹• —••‡•‹–•‡ƒ”‹‰•Ǥ —”–Š‡”‹ˆ‘”ƒ–‹‘‘ƒ”‰‡•ƒǯ•”‡•—Ž–•‹•ƒ˜ƒ‹Žƒ„Ž‡ ‘‹–•™‡„•‹–‡ȋ™™™Ǥ’ƒ”‰‡•ƒǤ ŠȌǤ 

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 3

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B3B3 116-05-126-05-12 2:002:00 PMPM      

Š‡ˆ‘ŽŽ‘™‹‰ Šƒ”–•Š‘™•–Š‡‡ ‘‘‹ ‹–‡”‡•–Š‡Ž†„›–Š‡‘”’‘”ƒ–‹‘‹‹–•‘’‡”ƒ–‹‰•—„•‹†‹ƒ”‹‡•ƒ† ‡”–ƒ‹ ‘–Š‡”‹˜‡•–‡–•ƒ–ƒ” Š͵ͳǡʹͲͳ͸Ǥ

 POWERFINANCIAL   ͸͹ǤͶΨ ͸ͳǤʹΨ ʹ͹ǤͺΨȏͳȐ ͷͻǤͺΨȏʹȐ

 ͶǤͲΨ Lifeco ͵ǤͺΨ IGMFinancial Pargesa ‡ƒŽ–Š•‹’Ž‡  ͳͲͲΨ ͳͲͲΨ ͳͲͲΨ ͷͲǤͲΨ  ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ ”‡ƒ–Ǧ‡•–‹ˆ‡ ˜‡•–‘”• ”‘—’   —‹–›

‡”›•ͷ͵ǤͺΨ  ͻͷǤͺΨ ͳͲͲΨ ͳͲͲΨ ƒˆƒ”‰‡ ‘Ž ‹ͻǤͶΨ PART B PART B  —–ƒ ‘†‘‹ˆ‡ ƒ ‡œ‹‡  ͳͷǤͲΨ ‡”‘†‹ ƒ”†͹ǤͷΨ ͳͲͲΨ  ‘–ƒŽͳǤ͵Ψ ƒƒ†ƒ‹ˆ‡ ‰‹‡ʹǤ͵Ψ POWER FINANCIAL CORPORATION 

 ͳͲͲΨ  ”‹•Š‹ˆ‡   ȏͳȐ ‡Ž†–Š”‘—‰Šƒ”Œ‘‹– ‘ǡƒŒ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘ȋͷͲΨȌǤ ȏʹȐ‡’”‡•‡–‹‰͸ͲǤͶΨ‘ˆ–Š‡˜‘–‹‰”‹‰Š–•Ǥ 

LIFECO ‹ˆ‡ ‘ ‹• ƒ ‹–‡”ƒ–‹‘ƒŽ ˆ‹ƒ ‹ƒŽ •‡”˜‹ ‡• Š‘Ž†‹‰ ‘’ƒ› ™‹–Š •—„•‹†‹ƒ”‹‡• ‘ˆˆ‡”‹‰ Ž‹ˆ‡ ‹•—”ƒ ‡ǡ Š‡ƒŽ–Š ‹•—”ƒ ‡ǡ ”‡–‹”‡‡– ƒ† ‹˜‡•–‡– •‡”˜‹ ‡• ƒ† ‡‰ƒ‰‡† ‹ –Š‡ ƒ••‡– ƒƒ‰‡‡– ƒ† ”‡‹•—”ƒ ‡ „—•‹‡••‡•Ǥ – ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘™‡” ‹ƒ ‹ƒŽ ƒ†  Š‡Ž† ͸͹ǤͶΨ ƒ† ͶǤͲΨǡ ”‡•’‡ –‹˜‡Ž›ǡ ‘ˆ ‹ˆ‡ ‘ǯ• ‘‘ •Šƒ”‡•ǡ ”‡’”‡•‡–‹‰ ƒ’’”‘š‹ƒ–‡Ž› ͸ͷΨ ‘ˆ –Š‡ ˜‘–‹‰ ”‹‰Š–• ƒ––ƒ Š‡† –‘ ƒŽŽ ‘—–•–ƒ†‹‰ ‹ˆ‡ ‘ ˜‘–‹‰ •Šƒ”‡•Ǥ ‘–‹‰ ”‹‰Š–•‹ƒŽ‹ˆ‡‹•—”ƒ ‡ ‘’ƒ›ƒ”‡Ž‹‹–‡†„›Žƒ™–‘͸ͷΨǤ ‡‡’ƒ”–‘ˆ–Š‹•Ƭˆ‘”ƒ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘‘‹ˆ‡ ‘Ǥ

IGMFINANCIAL ‹•ƒˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡• ‘’ƒ›™Š‹ Š•‡”˜‡•–Š‡ˆ‹ƒ ‹ƒŽ‡‡†•‘ˆƒƒ†‹ƒ•–Š”‘—‰Š‹–•’”‹ ‹’ƒŽ •—„•‹†‹ƒ”‹‡•ǡ‡ƒ Š‘’‡”ƒ–‹‰†‹•–‹ –Ž›™‹–Š‹–Š‡ƒ†˜‹ ‡•‡‰‡–‘ˆ–Š‡ˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡•ƒ”‡–Ǥ – ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘™‡” ‹ƒ ‹ƒŽ ƒ† ”‡ƒ–Ǧ‡•– ‹ˆ‡ǡ ƒ •—„•‹†‹ƒ”› ‘ˆ ‹ˆ‡ ‘ǡ Š‡Ž† ͸ͳǤʹΨ ƒ† ͵ǤͺΨǡ ”‡•’‡ –‹˜‡Ž›ǡ ‘ˆ ǯ• ‘‘ •Šƒ”‡•Ǥ • ƒ ”‡•—Ž– ‘ˆ ǯ• ”‡’—” Šƒ•‡• ƒ† •—„•‡“—‡– ƒ ‡ŽŽƒ–‹‘ ‘ˆ ‹–• ‘‘•Šƒ”‡•ǡ‘™‡” ‹ƒ ‹ƒŽǯ•‡“—‹–›‹–‡”‡•–‹ ‹ ”‡ƒ•‡†„›ͲǤͺΨˆ”‘͸ͲǤͶΨƒ–‡ ‡„‡”͵ͳǡʹͲͳͷ–‘ ͸ͳǤʹΨƒ–ƒ” Š͵ͳǡʹͲͳ͸Ǥ ‡‡’ƒ”–‘ˆ–Š‹•Ƭˆ‘”ƒ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘‘ Ǥ  

B 4 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B4B4 116-05-126-05-12 2:002:00 PMPM      

PARGESAANDGBL ‘™‡” ‹ƒ ‹ƒŽ—”‘’‡ǤǤǡƒ™Š‘ŽŽ›‘™‡†•—„•‹†‹ƒ”›‘ˆ‘™‡” ‹ƒ ‹ƒŽǡƒ†–Š‡ ”°”‡ ”‘—’ǡ‡ƒ ŠŠ‘Ž†ƒ ͷͲΨ‹–‡”‡•–‹ƒ”Œ‘‹– ‘ǡ™Š‹ Šǡƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡŠ‡Ž†ƒͷͷǤͷΨ‹–‡”‡•–‹ƒ”‰‡•ƒǡ”‡’”‡•‡–‹‰͹ͷǤͶΨ‘ˆ–Š‡ ˜‘–‹‰”‹‰Š–•‹–Šƒ– ‘’ƒ›Ǥ ƒ”‰‡•ƒ ‹• ƒ Š‘Ž†‹‰ ‘’ƒ›ǡ ™Š‹ Šǡ ƒ– ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ Š‡Ž† ƒ ͷͲΨ ‹–‡”‡•– ‹ ǡ ”‡’”‡•‡–‹‰ ͷʹΨ ‘ˆ –Š‡ ˜‘–‹‰ ”‹‰Š–• ‹ –Šƒ– ‘’ƒ›Ǥ ǡ ƒ ‡Ž‰‹ƒ Š‘Ž†‹‰ ‘’ƒ›ǡ‹•Ž‹•–‡†‘–Š‡”—••‡Ž•–‘ š Šƒ‰‡ ȋǣ ȌǤ –ƒ” Š͵ͳǡʹͲͳ͸ǡ ǯ•’‘”–ˆ‘Ž‹‘™ƒ•ƒ‹Ž› ‘’”‹•‡†‘ˆ‹˜‡•–‡–•‹ǣ ‡”›•Ȃ‹‡”ƒŽǦ„ƒ•‡†•’‡ ‹ƒŽ–›

•‘Ž—–‹‘•ˆ‘”‹†—•–”›ȋǣȌǢƒˆƒ”‰‡ ‘Ž ‹Ȃ ‡‡–ǡƒ‰‰”‡‰ƒ–‡•ƒ† ‘ ”‡–‡ȋ ǣ ƒ†ǣ ȌǢ CORPORATION FINANCIAL POWER  Ȃ–‡•–‹‰ǡ‹•’‡ –‹‘ƒ† ‡”–‹ˆ‹ ƒ–‹‘ȋ ǣ ȌǢ‡”‘†‹ ƒ”†Ȃ™‹‡•ƒ†•’‹”‹–•ȋǣ ȌǢ‘–ƒŽȂ‘‹Žǡ‰ƒ• ƒ†ƒŽ–‡”ƒ–‹˜‡‡‡”‰‹‡•ȋǣ ȌǢƒ†‰‹‡Ȃ‡Ž‡ –”‹ ‹–›ǡƒ–—”ƒŽ‰ƒ•ǡƒ†‡‡”‰›ƒ†‡˜‹”‘‡–ƒŽ•‡”˜‹ ‡•

ȋǣ ȌǤ BPART ‡‡ƒ”–‘ˆ–Š‹•Ƭˆ‘”ƒ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘‘ƒ”‰‡•ƒǤ

WEALTHSIMPLE  –Š‡ ˆ‹”•– “—ƒ”–‡” ‘ˆ ʹͲͳ͸ǡ ‘™‡” ‹ƒ ‹ƒŽ ‹˜‡•–‡† ̈́ͳ͵ ‹ŽŽ‹‘ ‹ ‡ƒŽ–Š•‹’Ž‡ǡ ƒ –‡ Š‘Ž‘‰›Ǧ†”‹˜‡ ‹˜‡•–‡–ƒƒ‰‡”ǡ„”‹‰‹‰–Š‡–‘–ƒŽ‹˜‡•–‡––‘†ƒ–‡–‘̈́͵Ͳ‹ŽŽ‹‘Ǥƒ” Š͵ͳǡʹͲͳ͸ǡ‘™‡” ‹ƒ ‹ƒŽŠ‡Ž† ƒͷͻǤͺΨ‡“—‹–›‹–‡”‡•–‹‡ƒŽ–Š•‹’Ž‡ǡ”‡’”‡•‡–‹‰͸ͲǤͶΨ‘ˆ–Š‡˜‘–‹‰”‹‰Š–•Ǥ

BASISOFPRESENTATION Š‡ –‡”‹ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ –ƒ–‡‡–• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ Šƒ˜‡ „‡‡ ’”‡’ƒ”‡† ‹ ƒ ‘”†ƒ ‡ ™‹–Š –‡”ƒ–‹‘ƒŽ  ‘—–‹‰ –ƒ†ƒ”† ͵Ͷ ൞ Interim Financial Reporting ȋ ͵ͶȌƒ†ƒ”‡’”‡•‡–‡†‹ƒƒ†‹ƒ †‘ŽŽƒ”•Ǥ ‹ˆ‡ ‘ƒ† ƒ”‡ ‘–”‘ŽŽ‡†„›‘™‡” ‹ƒ ‹ƒŽƒ†–Š‡‹”ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ƒ”‡ ‘•‘Ž‹†ƒ–‡†™‹–Š–Š‘•‡‘ˆ ‘™‡” ‹ƒ ‹ƒŽǤ ‘•‘Ž‹†ƒ–‡† ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ’”‡•‡–ǡ ƒ• ƒ •‹‰Ž‡ ‡ ‘‘‹  ‡–‹–›ǡ –Š‡ ƒ••‡–•ǡ Ž‹ƒ„‹Ž‹–‹‡•ǡ ”‡˜‡—‡•ǡ ‡š’‡•‡• ƒ† ƒ•Š ˆŽ‘™• ‘ˆ –Š‡ ’ƒ”‡– ‘’ƒ› ƒ† ‹–•‘’‡”ƒ–‹‰•—„•‹†‹ƒ”‹‡•ǤŠ‡ ‘•‘Ž‹†ƒ–‡† ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ’”‡•‡– –Š‡ ˆ‹ƒ ‹ƒŽ ”‡•—Ž–• ‘ˆ ‘™‡” ‹ƒ ‹ƒŽ ȋ’ƒ”‡–Ȍ ƒ† ‹ˆ‡ ‘ ƒ†  ȋ‘’‡”ƒ–‹‰ •—„•‹†‹ƒ”‹‡•Ȍƒˆ–‡”–Š‡‡Ž‹‹ƒ–‹‘‘ˆ‹–‡” ‘’ƒ›„ƒŽƒ ‡•ƒ†–”ƒ•ƒ –‹‘•Ǥ ‘™‡” ‹ƒ ‹ƒŽǯ• ‹˜‡•–‡– ‹ ƒ”‰‡•ƒ ‹• Š‡Ž† –Š”‘—‰Š ƒ”Œ‘‹– ‘Ǥƒ”Œ‘‹– ‘‹•ƒŠ‘Ž†‹‰ ‘’ƒ›Œ‘‹–Ž› ‘–”‘ŽŽ‡†„›‘™‡” ‹ƒ ‹ƒŽƒ†–Š‡ ”°”‡ ”‘—’Ǥƒ”Œ‘‹– ‘ǯ•‘Ž›‹˜‡•–‡–‹•‹–•‹–‡”‡•–‹ƒ”‰‡•ƒǤ‘™‡” ‹ƒ ‹ƒŽǯ•‹˜‡•–‡–‹ƒ”Œ‘‹– ‘‹•ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–›‡–Š‘†ǡ‹™Š‹ Šǣ

 Š‡‹˜‡•–‡–‹•‹‹–‹ƒŽŽ›”‡ ‘‰‹œ‡†ƒ– ‘•–ƒ†ƒ†Œ—•–‡†–Š‡”‡ƒˆ–‡”ˆ‘”’‘•–Ǧƒ “—‹•‹–‹‘ Šƒ‰‡•‹‘™‡” ‹ƒ ‹ƒŽǯ••Šƒ”‡‘ˆƒ”‰‡•ƒǯ•‡–ƒ••‡–•ȋ•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›ȌǢ

 ‘™‡” ‹ƒ ‹ƒŽǯ•‡–‡ƒ”‹‰•‘”Ž‘••‹ Ž—†‡•‹–••Šƒ”‡‘ˆƒ”‰‡•ƒǯ•‡–‡ƒ”‹‰•‘”Ž‘••Ǣƒ†

 ‘™‡” ‹ƒ ‹ƒŽǯ•‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡‹ Ž—†‡•‹–••Šƒ”‡‘ˆƒ”‰‡•ƒǯ•‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ ‘™‡” ‹ƒ ‹ƒŽǯ•‹˜‡•–‡–‹‡ƒŽ–Š•‹’Ž‡‹•ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–›‡–Š‘†Ǥ 

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 5

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B5B5 116-05-126-05-12 2:002:00 PMPM      

Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡•—ƒ”‹œ‡•–Š‡ƒ ‘—–‹‰’”‡•‡–ƒ–‹‘ˆ‘”–Š‡‘”’‘”ƒ–‹‘ǯ•Š‘Ž†‹‰•ǣ

ControlBasisofAccounting EarningsandOther ImpairmentTestingImpairmentReversal ComprehensiveIncome ‘–”‘ŽŽ‹‰‹–‡”‡•–‹–Š‡  • ‘•‘Ž‹†ƒ–‹‘ • ‘•‘Ž‹†ƒ–‡†™‹–Š‘Ǧ • ‘‘†™‹ŽŽƒ†‹†‡ˆ‹‹–‡ • ’ƒ‹”‡–‘ˆ‰‘‘†™‹ŽŽ ‡–‹–› ‘–”‘ŽŽ‹‰‹–‡”‡•–• Ž‹ˆ‡‹–ƒ‰‹„Ž‡ƒ••‡–•ƒ”‡ ƒ‘–„‡”‡˜‡”•‡† –‡•–‡†ƒ—ƒŽŽ›ˆ‘” • ’ƒ‹”‡–‘ˆ‹–ƒ‰‹„Ž‡ ‹’ƒ‹”‡– ƒ••‡–•‹•”‡˜‡”•‡†‹ˆ–Š‡”‡ ‹•‡˜‹†‡ ‡‘ˆ”‡ ‘˜‡”›‘ˆ ˜ƒŽ—‡  ‹‰‹ˆ‹ ƒ–‹ˆŽ—‡ ‡‘”  • “—‹–›‡–Š‘†‘ˆ • ‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ • –‹”‡‹˜‡•–‡–‹• • ‡˜‡”•‡†‹ˆ–Š‡”‡‹• Œ‘‹– ‘–”‘Ž ƒ ‘—–‹‰ ‡ƒ”‹‰•ƒ†‘–Š‡” –‡•–‡†ˆ‘”‹’ƒ‹”‡– ‡˜‹†‡ ‡–Š‡‹˜‡•–‡– ‘’”‡Š‡•‹˜‡‹ ‘‡ Šƒ•”‡ ‘˜‡”‡†‹–•˜ƒŽ—‡ ‘Ǧ ‘–”‘ŽŽ‡†’‘”–ˆ‘Ž‹‘  • ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ȋ Ȍ • ƒ”‹‰• ‘•‹•–‘ˆ • ’ƒ‹”‡––‡•–‹‰‹• • ƒ‘–„‡”‡˜‡”•‡†‡˜‡ ‹˜‡•–‡–• †‹˜‹†‡†•”‡ ‡‹˜‡†ƒ† †‘‡ƒ––Š‡‹†‹˜‹†—ƒŽ ‹ˆ–Š‡”‡‹•ƒ•—„•‡“—‡–  ‰ƒ‹•‘”Ž‘••‡•‘ ‹˜‡•–‡–Ž‡˜‡Ž ”‡ ‘˜‡”›‘ˆ˜ƒŽ—‡ †‹•’‘•ƒŽ• • •‹‰‹ˆ‹ ƒ–‘”’”‘Ž‘‰‡† • •Šƒ”‡’”‹ ‡†‡ ”‡ƒ•‡ • Š‡‹˜‡•–‡–•ƒ”‡ †‡ Ž‹‡‹–Š‡˜ƒŽ—‡‘ˆ–Š‡ •—„•‡“—‡––‘ƒ ƒ”‡†–‘ƒ”‡– ‹˜‡•–‡–”‡•—Ž–•‹ƒ ‹’ƒ‹”‡–Ž‡ƒ†•–‘ƒ –Š”‘—‰Š‘–Š‡” ‹’ƒ‹”‡– Šƒ”‰‡ ˆ—”–Š‡”‹’ƒ‹”‡– ‘’”‡Š‡•‹˜‡‹ ‘‡ • PART B PART B ƒ”‹‰•ƒ”‡”‡†— ‡† „›‹’ƒ‹”‡– Šƒ”‰‡•ǡ ‹ˆƒ›

POWER FINANCIAL CORPORATION –ƒ” Š͵ͳǡʹͲͳ͸ǡ–Š‡‘”’‘”ƒ–‹‘ǯ•Š‘Ž†‹‰•™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ Ψ‡ ‘‘‹  ‘Ž†‹‰• ‹–‡”‡•– ƒ•‹•‘ˆƒ ‘—–‹‰  ‡–Š‘†‘ˆƒ ‘—–‹‰ ‹ˆ‡ ‘ȏͳȐ ͸͹ǤͶ ‘–”‘ŽŽ‹‰‹–‡”‡•– ‘•‘Ž‹†ƒ–‹‘  ȏʹȐ ͸ͳǤʹ ‘–”‘ŽŽ‹‰‹–‡”‡•– ‘•‘Ž‹†ƒ–‹‘  ƒ”‰‡•ƒȏ͵Ȑ ʹ͹Ǥͺ ‘‹– ‘–”‘Ž “—‹–›‡–Š‘†‘ˆƒ ‘—–‹‰  ‡ƒŽ–Š•‹’Ž‡ȏͶȐ ͷͻǤͺ ‘‹– ‘–”‘Ž “—‹–›‡–Š‘†‘ˆƒ ‘—–‹‰   ȏͳȐ ƒŽ•‘Š‘Ž†•ƒͶǤͲΨ‹–‡”‡•–‹‹ˆ‡ ‘Ǥ ȏʹȐ ”‡ƒ–Ǧ‡•–‹ˆ‡ƒŽ•‘Š‘Ž†•ƒ͵ǤͺΨ‹–‡”‡•–‹ Ǥ ȏ͵Ȑ ‡Ž†–Š”‘—‰Šƒ”Œ‘‹– ‘ǡƒŒ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘ȋͷͲΨȌǤ ȏͶȐ ‡’”‡•‡–‹‰͸ͲǤͶΨ‘ˆ–Š‡˜‘–‹‰”‹‰Š–•Ǥ

–ƒ” Š͵ͳǡʹͲͳ͸ǡƒ”‰‡•ƒǯ•Š‘Ž†‹‰•™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ Ψ‡ ‘‘‹  ‘Ž†‹‰• ‹–‡”‡•– ƒ•‹•‘ˆƒ ‘—–‹‰  ‡–Š‘†‘ˆƒ ‘—–‹‰   ͷͲǤͲ ‘–”‘ŽŽ‹‰‹–‡”‡•–  ‘•‘Ž‹†ƒ–‹‘  ‡”›•  ͷ͵Ǥͺ ‘–”‘ŽŽ‹‰‹–‡”‡•–  ‘•‘Ž‹†ƒ–‹‘  ƒˆƒ”‰‡ ‘Ž ‹  ͻǤͶ ‘”–ˆ‘Ž‹‘‹˜‡•–‡–  ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡     ͳͷǤͲ ‘”–ˆ‘Ž‹‘‹˜‡•–‡–  ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡  ‡”‘†‹ ƒ”†  ͹Ǥͷ ‘”–ˆ‘Ž‹‘‹˜‡•–‡–  ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡  ‘–ƒŽ  ͳǤ͵ ‘”–ˆ‘Ž‹‘‹˜‡•–‡–  ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡  ‰‹‡  ʹǤ͵ ‘”–ˆ‘Ž‹‘‹˜‡•–‡–  ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡  

Š‹••—ƒ”›‘ˆƒ ‘—–‹‰’”‡•‡–ƒ–‹‘•Š‘—Ž†„‡”‡ƒ†‹ ‘Œ— –‹‘™‹–Š–Š‡ˆ‘ŽŽ‘™‹‰‘–‡•–‘–Š‡ ‘”’‘”ƒ–‹‘ǯ•ʹͲͳͷ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡–•ǣ  ƒ•‹•‘ˆ’”‡•‡–ƒ–‹‘ƒ†•—ƒ”›‘ˆ•‹‰‹ˆ‹ ƒ–ƒ ‘—–‹‰’‘Ž‹ ‹‡•Ǣ  ˜‡•–‡–•Ǣ  ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•Ǣ  ‘‘†™‹ŽŽƒ†‹–ƒ‰‹„Ž‡ƒ••‡–•Ǣƒ†  ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•Ǥ

B 6 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B6B6 116-05-126-05-12 2:012:01 PMPM      

NON-IFRSFINANCIALMEASURESANDPRESENTATION ƒƒŽ›œ‹‰–Š‡ˆ‹ƒ ‹ƒŽ”‡•—Ž–•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ† ‘•‹•–‡–™‹–Š–Š‡’”‡•‡–ƒ–‹‘‹’”‡˜‹‘—•’‡”‹‘†•ǡ Dz‡– ‡ƒ”‹‰• ƒ––”‹„—–ƒ„Ž‡ –‘ ‘‘ •Šƒ”‡Š‘Ž†‡”•dzǡ ’”‡•‡–‡† ‹ –Š‡ •‡ –‹‘ Dz‡•—Ž–• ‘ˆ ‘™‡” ‹ƒ ‹ƒŽ ‘”’‘”ƒ–‹‘dzǡƒ”‡ ‘’”‹•‡†‘ˆǣ

 operatingearningsƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”•Ǣƒ†

 other items‘”non-operating earningsǡ ™Š‹ Š ‹ Ž—†‡ –Š‡ ƒˆ–‡”Ǧ–ƒš ‹’ƒ – ‘ˆ ƒ› ‹–‡ –Šƒ– ‹ ƒƒ‰‡‡–ǯ• Œ—†‰‡– ™‘—Ž† ƒ‡ –Š‡ ’‡”‹‘†Ǧ‘˜‡”Ǧ’‡”‹‘† ‘’ƒ”‹•‘ ‘ˆ ”‡•—Ž–• ˆ”‘ ‘’‡”ƒ–‹‘• Ž‡•• ‡ƒ‹‰ˆ—ŽǤ–Š‡”‹–‡•‹ Ž—†‡–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ‹–‡•’”‡•‡–‡†ƒ•‘–Š‡”‹–‡•‘”‘Ǧ‘’‡”ƒ–‹‰

‡ƒ”‹‰•„›ƒ•—„•‹†‹ƒ”›‘”ƒŒ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘‘”ƒ••‘ ‹ƒ–‡Ǥ CORPORATION FINANCIAL POWER ƒƒ‰‡‡–—•‡•–Š‡•‡ˆ‹ƒ ‹ƒŽ‡ƒ•—”‡•‹‹–•’”‡•‡–ƒ–‹‘ƒ†ƒƒŽ›•‹•‘ˆ–Š‡ˆ‹ƒ ‹ƒŽ’‡”ˆ‘”ƒ ‡‘ˆ‘™‡” ‹ƒ ‹ƒŽǡ ƒ† „‡Ž‹‡˜‡• –Šƒ– –Š‡› ’”‘˜‹†‡ ƒ††‹–‹‘ƒŽ ‡ƒ‹‰ˆ—Ž‹ˆ‘”ƒ–‹‘–‘”‡ƒ†‡”•‹–Š‡‹”ƒƒŽ›•‹•‘ˆ–Š‡ ”‡•—Ž–•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ’‡”ƒ–‹‰‡ƒ”‹‰•ǡƒ•†‡ˆ‹‡†„›–Š‡‘”’‘”ƒ–‹‘ǡƒ••‹•––Š‡”‡ƒ†‡”‹ ‘’ƒ”‹‰–Š‡ BPART —””‡–’‡”‹‘†ǯ•”‡•—Ž–•–‘–Š‘•‡‘ˆ’”‡˜‹‘—•’‡”‹‘†•ƒ•‹–‡•–Šƒ–ƒ”‡‘– ‘•‹†‡”‡†–‘„‡‘‰‘‹‰‘’‡”ƒ–‹‰ ƒ –‹˜‹–‹‡•ƒ”‡‡š Ž—†‡†ˆ”‘–Š‹•‘Ǧ ‡ƒ•—”‡Ǥ ’‡”ƒ–‹‰ ‡ƒ”‹‰• ƒ––”‹„—–ƒ„Ž‡ –‘ ‘‘ •Šƒ”‡Š‘Ž†‡”• ƒ† ‘’‡”ƒ–‹‰ ‡ƒ”‹‰• ’‡” •Šƒ”‡ ƒ”‡ ‘Ǧ  ˆ‹ƒ ‹ƒŽ‡ƒ•—”‡•–Šƒ–†‘‘–Šƒ˜‡ƒ•–ƒ†ƒ”†‡ƒ‹‰ƒ†ƒ›‘–„‡ ‘’ƒ”ƒ„Ž‡–‘•‹‹Žƒ”‡ƒ•—”‡•—•‡†„› ‘–Š‡”‡–‹–‹‡•Ǥ ‘”ƒ”‡ ‘ ‹Ž‹ƒ–‹‘‘ˆ–Š‡•‡‘Ǧ ‡ƒ•—”‡•–‘”‡•—Ž–•”‡’‘”–‡†‹ƒ ‘”†ƒ ‡™‹–Š ǡ•‡‡ –Š‡Dz‡•—Ž–•‘ˆ‘™‡” ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘Ȃƒ”‹‰•—ƒ”›Ȃ‘†‡•‡†—’’Ž‡‡–ƒ”›‘Ǧ‘•‘Ž‹†ƒ–‡† –ƒ–‡‡–•‘ˆƒ”‹‰•dz•‡ –‹‘„‡Ž‘™Ǥ –Š‹•Ƭǡƒ‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•‘ˆ’”‡•‡–ƒ–‹‘‹•ƒŽ•‘—•‡†„›–Š‡‘”’‘”ƒ–‹‘–‘’”‡•‡–ƒ†ƒƒŽ›œ‡‹–• ”‡•—Ž–•ǡˆ‹ƒ ‹ƒŽ’‘•‹–‹‘ƒ† ƒ•ŠˆŽ‘™•Ǥ –Š‹•„ƒ•‹•‘ˆ’”‡•‡–ƒ–‹‘ǡ‘™‡” ‹ƒ ‹ƒŽǯ•‹–‡”‡•–•‹‹ˆ‡ ‘ƒ†  ƒ”‡ ƒ ‘—–‡† ˆ‘” —•‹‰ –Š‡ ‡“—‹–› ‡–Š‘†Ǥ ”‡•‡–ƒ–‹‘ ‘ ƒ ‘Ǧ ‘•‘Ž‹†ƒ–‡† „ƒ•‹• ‹• ƒ ‘Ǧ  ’”‡•‡–ƒ–‹‘Ǥ ‘™‡˜‡”ǡ‹–‹•—•‡ˆ—Ž–‘–Š‡”‡ƒ†‡”ƒ•‹–’”‡•‡–•–Š‡Š‘Ž†‹‰ ‘’ƒ›ǯ•ȋ’ƒ”‡–Ȍ”‡•—Ž–••‡’ƒ”ƒ–‡Ž› ˆ”‘ –Š‡ ”‡•—Ž–• ‘ˆ ‹–• ‘’‡”ƒ–‹‰ •—„•‹†‹ƒ”‹‡•Ǥ ‡ ‘ ‹Ž‹ƒ–‹‘•‘ˆ–Š‡‘Ǧ „ƒ•‹•‘ˆ’”‡•‡–ƒ–‹‘™‹–Š–Š‡ ’”‡•‡–ƒ–‹‘‹ƒ ‘”†ƒ ‡™‹–Š ƒ”‡‹ Ž—†‡†‡Ž•‡™Š‡”‡‹–Š‹•ƬǤ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 7

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B7B7 116-05-126-05-12 2:012:01 PMPM      

RESULTSOFPOWERFINANCIALCORPORATION

EARNINGSSUMMARY–CONDENSEDSUPPLEMENTARYNON-CONSOLIDATEDSTATEMENTSOFEARNINGS Š‡ ˆ‘ŽŽ‘™‹‰ –ƒ„Ž‡ ‹• ƒ ”‡ ‘ ‹Ž‹ƒ–‹‘ ‘ˆ ‘Ǧ  ˆ‹ƒ ‹ƒŽ ‡ƒ•—”‡•ǣ ‘’‡”ƒ–‹‰ ‡ƒ”‹‰•ǡ ‘Ǧ‘’‡”ƒ–‹‰ ‡ƒ”‹‰•ǡ‘’‡”ƒ–‹‰‡ƒ”‹‰•’‡”•Šƒ”‡ƒ†‘Ǧ‘’‡”ƒ–‹‰‡ƒ”‹‰•’‡”•Šƒ”‡™‹–Šˆ‹ƒ ‹ƒŽ‡ƒ•—”‡•’”‡•‡–‡† ‹ƒ ‘”†ƒ ‡™‹–Š ǣ‡–‡ƒ”‹‰•ƒ†‡–‡ƒ”‹‰•’‡”•Šƒ”‡Ǥ –Š‹••‡ –‹‘ǡ–Š‡ ‘–”‹„—–‹‘•ˆ”‘‹ˆ‡ ‘ ƒ† ǡ™Š‹ Š”‡’”‡•‡–‘•–‘ˆ–Š‡‡ƒ”‹‰•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡƒ”‡ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–›‡–Š‘†Ǥ

March31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡† 2016 ʹͲͳͷ ʹͲͳͷ Operatingearnings ‹ˆ‡ ‘ 419 Ͷ͸ͳ Ͷ͹͵  100 ͳͳͺ ͳͳͻ ƒ”‰‡•ƒ 29 ͳͳͻ  548 ͷͺͲ ͸ͳͳ ‘”’‘”ƒ–‡‘’‡”ƒ–‹‘• (41) ȋʹ͹Ȍ ȋͳ͵Ȍ

PART B PART B ‹˜‹†‡†•‘’‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• (31) ȋ͵ʹȌ ȋ͵͵Ȍ ’‡”ƒ–‹‰‡ƒ”‹‰•ȋƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”•Ȍ 476 ͷʹͳ ͷ͸ͷ

Otheritems(non-operatingearnings)[1]   POWER FINANCIAL CORPORATION ‹ˆ‡ ‘ Ϋ ȋͳȌ Ϋ  Ϋ ȋͳͶȌ Ϋ ƒ”‰‡•ƒ (217) ʹʹ ͺ  (217) ͹ͺ Netearnings(attributabletocommonshareholders) 259 ͷʹͺ ͷ͹͵

Earningspershare(attributabletocommonshareholders)   ’‡”ƒ–‹‰‡ƒ”‹‰• 0.67 ͲǤ͹͵ ͲǤ͹ͻ ‘Ǧ‘’‡”ƒ–‹‰‡ƒ”‹‰• (0.31) ͲǤͲͳ ͲǤͲͳ ‡–‡ƒ”‹‰• 0.36 ͲǤ͹Ͷ ͲǤͺͲ

ȏͳȐ‡‡Dz–Š‡” –‡•dz„‡Ž‘™Ǥ

NETEARNINGSȋ   Ȍ ‡– ‡ƒ”‹‰• ƒ––”‹„—–ƒ„Ž‡ –‘ ‘‘ •Šƒ”‡Š‘Ž†‡”• ˆ‘” –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ™‡”‡ ̈́ʹͷͻ‹ŽŽ‹‘ ‘” ̈́ͲǤ͵͸ ’‡” •Šƒ”‡ǡ ‘’ƒ”‡† ™‹–Š ̈́ͷ͹͵ ‹ŽŽ‹‘ ‘” ̈́ͲǤͺͲ ’‡” •Šƒ”‡ ‹ –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‹ʹͲͳͷǡƒ†̈́ͷʹͺ‹ŽŽ‹‘‘”̈́ͲǤ͹Ͷ’‡”•Šƒ”‡‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ †‹• —••‹‘‘–Š‡”‡•—Ž–•‘ˆ–Š‡‘”’‘”ƒ–‹‘‹•’”‘˜‹†‡†‹–Š‡•‡ –‹‘•Dz‘–”‹„—–‹‘–‘‘’‡”ƒ–‹‰‡ƒ”‹‰•dzǡ Dz‘”’‘”ƒ–‡‘’‡”ƒ–‹‘•‘ˆ‘™‡” ‹ƒ ‹ƒŽdzǡƒ†Dz–Š‡”‹–‡•dz„‡Ž‘™Ǥ

OPERATINGEARNINGSȋ   Ȍ ’‡”ƒ–‹‰‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡ ̈́Ͷ͹͸‹ŽŽ‹‘‘”̈́ͲǤ͸͹’‡”•Šƒ”‡ǡ ‘’ƒ”‡†™‹–Š̈́ͷ͸ͷ‹ŽŽ‹‘‘”̈́ͲǤ͹ͻ’‡”•Šƒ”‡‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ ʹͲͳͷǡƒ†‡ ”‡ƒ•‡‘ˆͳͷǤʹΨ‘ƒ’‡”•Šƒ”‡„ƒ•‹•ǡƒ†̈́ͷʹͳ‹ŽŽ‹‘‘”̈́ͲǤ͹͵’‡”•Šƒ”‡‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ

CONTRIBUTIONTOOPERATINGEARNINGSವLIFECO,IGMANDPARGESA ‘™‡” ‹ƒ ‹ƒŽǯ••Šƒ”‡‘ˆ‘’‡”ƒ–‹‰‡ƒ”‹‰•ˆ”‘‹ˆ‡ ‘ǡ ƒ†ƒ”‰‡•ƒˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ ™ƒ• ̈́ͷͶͺ ‹ŽŽ‹‘ǡ ‘’ƒ”‡† ™‹–Š ̈́͸ͳͳ ‹ŽŽ‹‘ ˆ‘” –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‹ ʹͲͳͷǡ ƒ† ̈́ͷͺͲ‹ŽŽ‹‘‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ  

B 8 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B8B8 116-05-126-05-12 2:012:01 PMPM      

Lifeco ‹ˆ‡ ‘ǯ• ‘–”‹„—–‹‘–‘‘™‡” ‹ƒ ‹ƒŽǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ ™ƒ• ̈́Ͷͳͻ‹ŽŽ‹‘ǡ ‘’ƒ”‡† ™‹–Š ̈́Ͷ͹͵‹ŽŽ‹‘ ˆ‘” –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‹ ʹͲͳͷ ƒ† ̈́Ͷ͸ͳ ‹ŽŽ‹‘ ‹ –Š‡ ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ  ‹ˆ‡ ‘”‡’‘”–‡†‘’‡”ƒ–‹‰‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘‹ˆ‡ ‘ ‘‘•Šƒ”‡Š‘Ž†‡”•‘ˆ̈́͸ʹͲ‹ŽŽ‹‘‘”̈́ͲǤ͸ʹͷ’‡” •Šƒ”‡ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́͹ͲͲ‹ŽŽ‹‘‘”̈́ͲǤ͹Ͳʹ’‡”•Šƒ”‡‹ –Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǡƒ†‡ ”‡ƒ•‡‘ˆͳͳǤͲΨ‘ƒ’‡”•Šƒ”‡„ƒ•‹•ǡƒ†̈́͸ͺ͵‹ŽŽ‹‘‘”̈́ͲǤ͸ͺͺ’‡” •Šƒ”‡‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ  —ƒ”›‘ˆ‹ˆ‡ ‘ǯ•‘’‡”ƒ–‹‰•‡‰‡–”‡•—Ž–•ǣ POWER FINANCIAL CORPORATION FINANCIAL POWER March31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡† 2016 ʹͲͳͷ ʹͲͳͷ

Canada  

†‹˜‹†—ƒŽ •—”ƒ ‡  92 ͷͳ ͹͹ BPART ‡ƒŽ–Šƒƒ‰‡‡–  101 ͳͳͻ ͳʹʹ ”‘—’ •—”ƒ ‡  67 ͹Ͷ ͳͲͻ ƒƒ†ƒ‘”’‘”ƒ–‡  16 ͳͺ ȋͻȌ   276 ʹ͸ʹ ʹͻͻ

UnitedStates   ‹ƒ ‹ƒŽ‡”˜‹ ‡•  90 ͺ͸ ͳʹͲ ••‡–ƒƒ‰‡‡–  (25) Ͷͳ ʹ ǤǤ‘”’‘”ƒ–‡  (2) ȋʹȌ ȋͳȌ   63 ͳʹͷ ͳʹͳ

Europe   •—”ƒ ‡ƒ†—‹–‹‡•  226 ʹ͵Ͷ ʹͳ͸ ‡‹•—”ƒ ‡  63 ͹͵ ͹͹ —”‘’‡‘”’‘”ƒ–‡  (2) ȋͶȌ ȋ͹Ȍ   287 ͵Ͳ͵ ʹͺ͸

LifecoCorporate (6) ȋ͹Ȍ ȋ͸Ȍ ’‡”ƒ–‹‰‡ƒ”‹‰•ȋƒ––”‹„—–ƒ„Ž‡–‘‹ˆ‡ ‘ ‘‘•Šƒ”‡Š‘Ž†‡”•Ȍ  620 ͸ͺ͵ ͹ͲͲ

‘™‡” ‹ƒ ‹ƒŽǯ••Šƒ”‡   419 Ͷ͸ͳ Ͷ͹͵

 ’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡̈́ʹ͹͸‹ŽŽ‹‘ǡ ‘’ƒ”‡†™‹–Š ̈́ʹͻͻ‹ŽŽ‹‘ ˆ‘” –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‹ ʹͲͳͷǤ Š‡ †‡ ”‡ƒ•‡™ƒ•’”‹ƒ”‹Ž›†—‡–‘Ž‡••ˆƒ˜‘—”ƒ„Ž‡ ‘”„‹†‹–›‡š’‡”‹‡ ‡ǡ –Š‡‹’ƒ –‘ˆŽ‘™‡”‡“—‹–› ƒ”‡–Ž‡˜‡Ž•ƒ†Ž‘™‡” ‘–”‹„—–‹‘•ˆ”‘‹˜‡•–‡– ‡š’‡”‹‡ ‡ǡ’ƒ”–‹ƒŽŽ›‘ˆˆ•‡–„›Ž‘™‡”‹ ‘‡–ƒš‡•Ǥ

  ’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡̈́Ͷ͹‹ŽŽ‹‘ȋ̈́͸͵‹ŽŽ‹‘Ȍǡƒ †‡ ”‡ƒ•‡‘ˆ̈́ͷͳ‹ŽŽ‹‘ȋ̈́ͷͺ‹ŽŽ‹‘Ȍ™Š‡ ‘’ƒ”‡†™‹–Š–Š‡•ƒ‡“—ƒ”–‡”Žƒ•–›‡ƒ”ǤŠ‡†‡ ”‡ƒ•‡™ƒ• ’”‹ƒ”‹Ž› †—‡ –‘ –Š‡ Ž‘™‡” ‘–”‹„—–‹‘• ˆ”‘ ‹˜‡•–‡– ‡š’‡”‹‡ ‡ǡ Ž‘™‡” ‡– ˆ‡‡ ‹ ‘‡ ƒ† Š‹‰Š‡” ‘’‡”ƒ–‹‰ ‡š’‡•‡• ”‡Žƒ–‡† –‘ •–”ƒ–‡‰‹  ƒ† „—•‹‡•• †‡˜‡Ž‘’‡–ǡ’ƒ”–‹ƒŽŽ›‘ˆˆ•‡–„›Ž‘™‡”‹ ‘‡–ƒš‡• †”‹˜‡„›ƒƒƒ‰‡‡–‡Ž‡ –‹‘–‘ Žƒ‹ˆ‘”‡‹‰–ƒš ”‡†‹–•Ǥ

 ’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡̈́ʹͺ͹‹ŽŽ‹‘ǡ ‘’ƒ”ƒ„Ž‡–‘–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǤ

‡‡ƒ”–‘ˆ–Š‹•Ƭˆ‘”‘”‡‹ˆ‘”ƒ–‹‘‘‹ˆ‡ ‘ǯ•”‡•—Ž–•Ǥ

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 9

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B9B9 116-05-126-05-12 2:012:01 PMPM      

IGMFinancial ǯ• ‘–”‹„—–‹‘–‘‘™‡” ‹ƒ ‹ƒŽǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•™ƒ•̈́ͳͲͲ‹ŽŽ‹‘ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡† ™‹–Š ̈́ͳͳͻ ‹ŽŽ‹‘ ˆ‘” –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‹ ʹͲͳͷǡ ƒ† ̈́ͳͳͺ‹ŽŽ‹‘ ‹ –Š‡ ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ  ”‡’‘”–‡†‘’‡”ƒ–‹‰‡ƒ”‹‰•ƒ˜ƒ‹Žƒ„Ž‡–‘  ‘‘•Šƒ”‡Š‘Ž†‡”•‘ˆ̈́ͳ͸͹‹ŽŽ‹‘‘”̈́ͲǤ͸ͻ’‡”•Šƒ”‡ ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́ʹͲͲ‹ŽŽ‹‘‘”̈́ͲǤͺͲ’‡”•Šƒ”‡‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǡƒ†‡ ”‡ƒ•‡‘ˆͳ͵ǤͺΨ‘ƒ’‡”•Šƒ”‡„ƒ•‹•ǡƒ†̈́ͳͻͺ‹ŽŽ‹‘‘”̈́ͲǤͺͳ’‡”•Šƒ”‡ ‹–Š‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǤ  ’‡”ƒ–‹‰‡ƒ”‹‰•„‡ˆ‘”‡‹–‡”‡•–ƒ†–ƒš‡•‘ˆ ǯ••‡‰‡–•ȋƒ‘Ǧ ‡ƒ•—”‡ǡƒ•†‹• —••‡†‹ƒ”– ‘ˆ–Š‹•ƬȌƒ†‘’‡”ƒ–‹‰‡ƒ”‹‰•ƒ˜ƒ‹Žƒ„Ž‡–‘  ‘‘•Šƒ”‡Š‘Ž†‡”•™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ March31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡† 2016 ʹͲͳͷ ʹͲͳͷ ˜‡•–‘”• ”‘—’   163 ͳͻͲ ͳͻͳ ƒ ‡œ‹‡ 36 ͷͳ ͷ͹ ‘”’‘”ƒ–‡ƒ†‘–Š‡” 34 ͵͸ ͵ʹ PART B PART B ’‡”ƒ–‹‰‡ƒ”‹‰•ȋ„‡ˆ‘”‡‹–‡”‡•–ǡ‹ ‘‡–ƒš‡•ǡ’”‡ˆ‡””‡†•Šƒ”‡†‹˜‹†‡†•ƒ†‘–Š‡”Ȍ 233 ʹ͹͹ ʹͺͲ –‡”‡•–‡š’‡•‡ǡ‹ ‘‡–ƒš‡•ǡ’”‡ˆ‡””‡†•Šƒ”‡†‹˜‹†‡†• ƒ†‘–Š‡” (66) ȋ͹ͻȌ ȋͺͲȌ ’‡”ƒ–‹‰‡ƒ”‹‰•ȋƒ˜ƒ‹Žƒ„Ž‡–‘  ‘‘•Šƒ”‡Š‘Ž†‡”•Ȍ 167 ͳͻͺ ʹͲͲ POWER FINANCIAL CORPORATION ‘™‡” ‹ƒ ‹ƒŽǯ••Šƒ”‡   100 ͳͳͺ ͳͳͻ

  ’‡”ƒ–‹‰ ‡ƒ”‹‰• †‡ ”‡ƒ•‡† ‹ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡† –‘ –Š‡ •ƒ‡ ’‡”‹‘†‹ʹͲͳͷǡ†—‡–‘ǣ   †‡ ”‡ƒ•‡ ‹ ”‡˜‡—‡• ’”‹ƒ”‹Ž› ”‡•—Ž–‹‰ ˆ”‘ –Š‡ †‡ ”‡ƒ•‡ ‹ƒ˜‡”ƒ‰‡†ƒ‹Ž›—–—ƒŽˆ—†ƒ••‡–•‘ˆ ʹǤͷΨ ‹ –Š‡ ˆ‹”•– “—ƒ”–‡” ‘ˆ ʹͲͳ͸ ˆ”‘ –Š‡ ˆ‹”•– “—ƒ”–‡” ‘ˆ ʹͲͳͷǡƒ•™‡ŽŽƒ•ƒ†‡ Ž‹‡‹–Š‡ƒ˜‡”ƒ‰‡ ƒƒ‰‡‡–ˆ‡‡”ƒ–‡Ǣ  †‡ ”‡ƒ•‡‹‡–‹˜‡•–‡–‹ ‘‡Ǣƒ†   ‹ ”‡ƒ•‡ ‹ ‡š’‡•‡• ”‡•—Ž–‹‰ Žƒ”‰‡Ž› ˆ”‘ ‹‹–‹ƒ–‹˜‡• —†‡”–ƒ‡‹ʹͲͳͷ–‘‹’”‘˜‡•—’’‘”–‹ •‡˜‡”ƒŽƒ”‡ƒ•ǡƒ•™‡ŽŽƒ•–Š‡‡ˆˆ‡ –‘ˆ ‘–‹—‹‰‹˜‡•–‡–•‹•›•–‡”‡Žƒ–‡†’”‘Œ‡ –•Ǥ

  ’‡”ƒ–‹‰ ‡ƒ”‹‰• †‡ ”‡ƒ•‡† ‹ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡† –‘ –Š‡ •ƒ‡ ’‡”‹‘†‹ʹͲͳͷǡ†—‡–‘ǣ  †‡ ”‡ƒ•‡‹”‡˜‡—‡•’”‹ƒ”‹Ž›”‡•—Ž–‹‰ˆ”‘–Š‡†‡ ”‡ƒ•‡‹ƒ˜‡”ƒ‰‡ƒ••‡–•—†‡”ƒƒ‰‡‡–‘ˆ ͳͺǤͺΨ‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ˆ”‘–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǡƒ†‘ˆˆ•‡–ǡ‹’ƒ”–ǡ„›ƒ‹ ”‡ƒ•‡‹–Š‡ ƒ˜‡”ƒ‰‡ƒƒ‰‡‡–ˆ‡‡”ƒ–‡Ǣƒ†   †‡ ”‡ƒ•‡ ‹ ‘‹••‹‘ ‡š’‡•‡• †—‡ –‘ –Š‡ †‡ ”‡ƒ•‡ ‹ ƒ˜‡”ƒ‰‡—–—ƒŽˆ—†ƒ••‡–•ˆ‘”–Š‡–Š”‡‡ ‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸Ǥ

 ‘–ƒŽƒ••‡–•—†‡”ƒƒ‰‡‡–™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ March31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ ‡ ‡„‡”͵ͳǡ ȋ „‹ŽŽ‹‘•‘ˆ†‘ŽŽƒ”•Ȍ 2016 ʹͲͳͷ ʹͲͳͷ ʹͲͳͶ ˜‡•–‘”• ”‘—’ 75.2 ͹ͶǤͻ ͹͸Ǥͷ ͹͵Ǥͷ ƒ ‡œ‹‡ 60.7 ͸ͳǤ͹ ͹ͶǤ͸ ͹ͲǤͻ ‘”’‘”ƒ–‡ƒ†‘–Š‡”ȏͳȐ (3.0) ȋ͵ǤͲȌ ȋʹǤ͹Ȍ ȋʹǤͷȌ ‘–ƒŽ 132.9 ͳ͵͵Ǥ͸ ͳͶͺǤͶ ͳͶͳǤͻ

ȏͳȐ  Ž—†‡• ˜‡•–‡–Žƒ‹‰‘—•‡Žǯ•ƒ••‡–•—†‡”ƒƒ‰‡‡–Ž‡••ƒƒ†Œ—•–‡–ˆ‘”ƒ••‡–••—„Ǧƒ†˜‹•‡†„›ƒ ‡œ‹‡‘„‡ŠƒŽˆ‘ˆ ˜‡•–‘”• ”‘—’ƒ† ˜‡•–‡–Žƒ‹‰‘—•‡ŽǤ



B 10 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B10B10 116-05-126-05-12 2:012:01 PMPM      

 ‘–ƒŽƒ˜‡”ƒ‰‡†ƒ‹Ž›—–—ƒŽˆ—†ƒ••‡–•—†‡”ƒƒ‰‡‡–™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ  2016  ʹͲͳͷ ȋ „‹ŽŽ‹‘•‘ˆ†‘ŽŽƒ”•Ȍ Q1 Ͷ ͵ ʹ ͳ ˜‡•–‘”• ”‘—’ 73.5 ͹ͷǤ͵ ͹ͷǤͶ ͹͸Ǥͺ ͹ͷǤͷ ƒ ‡œ‹‡ 46.7 ͶͺǤͷ ͶͻǤʹ ͷͲǤ͸ ͷͲǤͷ ‘”’‘”ƒ–‡ƒ†‘–Š‡”ȏͳȐ 4.2 ͶǤͲ ͶǤͲ ͶǤͲ ͵Ǥͻ ‘–ƒŽ 124.4 ͳʹ͹Ǥͺ ͳʹͺǤ͸ ͳ͵ͳǤͶ ͳʹͻǤͻ

ȏͳȐ  Ž—†‡• ˜‡•–‡–Žƒ‹‰‘—•‡Žǯ•ƒ••‡–•—†‡”ƒƒ‰‡‡–Ž‡••ƒƒ†Œ—•–‡–ˆ‘”ƒ••‡–••—„Ǧƒ†˜‹•‡†„›ƒ ‡œ‹‡‘„‡ŠƒŽˆ‘ˆ ˜‡•–‘”• ”‘—’ƒ† ˜‡•–‡–Žƒ‹‰‘—•‡ŽǤ POWER FINANCIAL CORPORATION FINANCIAL POWER Šƒ‰‡•‹ƒ˜‡”ƒ‰‡†ƒ‹Ž›—–—ƒŽˆ—†ƒ••‡–•—†‡”ƒƒ‰‡‡–‘˜‡”–Š‡’ƒ•–ˆ‹˜‡“—ƒ”–‡”•Žƒ”‰‡Ž›”‡ˆŽ‡ – Šƒ‰‡•‘†‘‡•–‹ ƒ†ˆ‘”‡‹‰ƒ”‡–•ǤŠ‡•‡ƒ˜‡”ƒ‰‡ƒ••‡–•‹ ”‡ƒ•‡†‹–Š‡ˆ‹”•––™‘“—ƒ”–‡”•‘ˆʹͲͳͷǢ Š‘™‡˜‡”ǡ–Š‡›†‡ Ž‹‡†„›ʹǤͳΨƒ†ͲǤ͸Ψ‹–Š‡–Š‹”†ƒ†ˆ‘—”–Š“—ƒ”–‡”•‘ˆʹͲͳͷǡƒ††‡ Ž‹‡†ʹǤ͹Ψ‹–Š‡

ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸Ǥ BPART ‡‡ƒ”–‘ˆ–Š‹•Ƭˆ‘”‘”‡‹ˆ‘”ƒ–‹‘‘ ǯ•”‡•—Ž–•Ǥ

Pargesa ƒ”‰‡•ƒǯ• ‘–”‹„—–‹‘–‘‘™‡” ‹ƒ ‹ƒŽǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•™ƒ•̈́ʹͻ‹ŽŽ‹‘ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡† ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́ͳͻ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǡƒ†̈́ͳ‹ŽŽ‹‘‹–Š‡ˆ‘—”–Š “—ƒ”–‡”‘ˆʹͲͳͷǤ Š‡ ‘’‘‡–•‘ˆƒ”‰‡•ƒǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•™‡”‡ǣ Š”‡‡‘–Š•‡†‡† March31, ‡ ‡„‡”͵ͳǡ ƒ” Š ͵ͳǡ ȋ ‹ŽŽ‹‘•‘ˆ™‹••ˆ”ƒ •Ȍ 2016  ʹͲͳͷ ʹͲͳͷ ‘–”‹„—–‹‘ˆ”‘’”‹ ‹’ƒŽŠ‘Ž†‹‰•     Šƒ”‡‘ˆ‡ƒ”‹‰•‘ˆǣ     ‡”›•   26 ʹͷ ʹ͵ ƒˆƒ”‰‡ȏͳȐ   Ϋ Ϋ ȋ͹Ȍ ‹˜‹†‡†•ˆ”‘ǣ         41 Ϋ ͵͹ ‡”‘†‹ ƒ”†   Ϋ ͳͳ Ϋ ‘–ƒŽ   (9) ʹʹ Ϋ    58 ͷͺ ͷ͵ ‘–”‹„—–‹‘ˆ”‘’”‹˜ƒ–‡‡“—‹–›ƒ –‹˜‹–‹‡•ƒ†‘–Š‡”‹˜‡•–‡–ˆ—†•   (2) Ϋ ʹ ‡–ˆ‹ƒ ‹‰ Šƒ”‰‡•   26 ȋͶͶȌ ͹ ‡‡”ƒŽ‡š’‡•‡•ƒ†–ƒš‡•   (5) ȋͳ͵Ȍ ȋͺȌ ’‡”ƒ–‹‰‡ƒ”‹‰•   77 ͳ ͷͶ

‘™‡” ‹ƒ ‹ƒŽǯ••Šƒ”‡ȋ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȍ   29 ͳ ͳͻ

ȏͳȐƒˆƒ”‰‡ ‘–”‹„—–‡†–‘ƒ”‰‡•ƒǯ•‡ƒ”‹‰•—–‹Ž —‡͵ͲǡʹͲͳͷǤ Š‡ ƒ˜‡”ƒ‰‡ ‡š Šƒ‰‡ ”ƒ–‡• ˆ‘” –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ ƒ† ƒ” Š ͵ͳǡ ʹͲͳͷ ™‡”‡ ƒ• ˆ‘ŽŽ‘™•ǣ March31, ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡†   2016 ʹͲͳͷ Šƒ‰‡Ψ —”‘Ȁ   SF1.10  ͳǤͲ͹ ʹǤͺ  Ȁ   C$1.38 ̈́ͳǤ͵Ͳ ͸Ǥʹ

   

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 11

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B11B11 116-05-126-05-12 2:012:01 PMPM      

ƒ”‰‡•ƒǯ•‘’‡”ƒ–‹‰‡ƒ”‹‰•ˆ‘”–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™ƒ•‹’ƒ –‡†„›ǣ  Š‡ƒˆƒ”‰‡ ‘Ž ‹‡”‰‡”ǡ™Š‹ Š„‡ ƒ‡‡ˆˆ‡ –‹˜‡‘ —Ž›ͳͲǡʹͲͳͷǤ–ƒ”–‹‰‘–Šƒ–†ƒ–‡ǡ–Š‡‹˜‡•–‡–‹ ƒˆƒ”‰‡ ‘Ž ‹Šƒ•„‡‡ƒ ‘—–‡†ˆ‘”ƒ•ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǥ •‹‰‹ˆ‹ ƒ–’‘”–‹‘‘ˆƒ”‰‡•ƒǯ•‡ƒ”‹‰•ƒ”‡†‹˜‹†‡†•ˆ”‘‹–•‹˜‡•–‡–•ǣ   ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡ˆ‹”•–“—ƒ”–‡”ȌǢ  ‡”‘†‹ ƒ”†ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ƒ†ˆ‘—”–Š“—ƒ”–‡”•ȌǢ  ‘–ƒŽȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ǡ–Š‹”†ƒ†ˆ‘—”–Š“—ƒ”–‡”•Ȍǡ”‡ˆŽ‡ –•–Š‡ˆ‹ƒŽ‡–•‡––Ž‡‡–‘•Šƒ”‡• †‹•’‘•‡†‘ˆ‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸Ǣƒ†  ‰‹‡ȋ”‡‰—Žƒ”Ž›†‡ Žƒ”‡†‹–Š‡•‡ ‘†ƒ†–Š‹”†“—ƒ”–‡”•ȌǤ Š‡ ’‘•‹–‹˜‡ ‘Ǧ ƒ•Š ‹’ƒ – ƒ–  ‘ˆ –Š‡ ƒ” –‘ ƒ”‡– ‘ˆ †‡”‹˜ƒ–‹˜‡ ˆ‹ƒ ‹ƒŽ ‹•–”—‡–• ”‡Žƒ–‡† –‘ ‡š Šƒ‰‡ƒ„Ž‡„‘†•ǣ  ‡– ‰ƒ‹• ȋŽ‘••‡•Ȍ ”‡Žƒ–‡† –‘ ƒŽŽ ‘’–‹‘• ‡„‡††‡† ‹ „‘†• ‡š Šƒ‰‡ƒ„Ž‡ ˆ‘” ‰‹‡ •Šƒ”‡• ƒ† ‹ „‘†• ‹••—‡†„› ‹ʹͲͳ͵™Š‹ Šƒ”‡ ‘˜‡”–‹„Ž‡ˆ‘” •Šƒ”‡•Ǥ Šƒ†’”‡˜‹‘—•Ž›‹••—‡†„‘†•‡š Šƒ‰‡ƒ„Ž‡ PART B PART B ˆ‘” —‡œ ˜‹”‘‡‡– ȋ‹••—‡† ‹ ʹͲͳʹ ƒ† ‡š’‹”‡† ‹ ʹͲͳͷȌ ƒ† ‰‹‡ ȋ‹••—‡† ‹ ʹͲͳ͵ ƒ† ‡š’‹”‹‰ ‹ ʹͲͳ͹Ȍ •Šƒ”‡•Ǥ ƒ”‰‡•ƒǯ• •Šƒ”‡ ‘ˆ ‡– ‰ƒ‹• ˆ‘” –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ ™ƒ•  ͵ͺ‹ŽŽ‹‘ǡ ‘’ƒ”‡† –‘  ͳͳ‹ŽŽ‹‘ ‹ –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‘ˆ ʹͲͳͷǤ ƒ‹• ”‡Žƒ–‡† –‘ –Š‡•‡ ƒŽŽ

POWER FINANCIAL CORPORATION ‘’–‹‘•ˆ‘”–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸™‡”‡†—‡–‘–Š‡†‡ ”‡ƒ•‡‹–Š‡•Šƒ”‡’”‹ ‡•‘ˆ‰‹‡ƒ†‘ˆ †—”‹‰ –Š‡“—ƒ”–‡”Ǥ ‡‡ƒ”–‘ˆ–Š‹•Ƭˆ‘”‘”‡‹ˆ‘”ƒ–‹‘‘ƒ”‰‡•ƒǯ•”‡•—Ž–•Ǥ

CORPORATE OPERATIONS OF POWER FINANCIAL ‘”’‘”ƒ–‡‘’‡”ƒ–‹‘•‹ Ž—†‡‹ ‘‡ˆ”‘‹˜‡•–‡–•ǡ‘’‡”ƒ–‹‰‡š’‡•‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ǡ†‡’”‡ ‹ƒ–‹‘ƒ† ‹ ‘‡–ƒš‡•Ǥ

March 31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡† 2016 ʹͲͳͷ ʹͲͳͷ  ‘‡ˆ”‘‹˜‡•–‡–• –‡”‡•–‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ƒ†ˆ‘”‡‹‰‡š Šƒ‰‡‰ƒ‹•ȋŽ‘••‡•Ȍ (5) ͷͳͲ –Š‡” (7) ȋͳȌ Ϋ  (12) ͶͳͲ ’‡”ƒ–‹‰ƒ†‘–Š‡”‡š’‡•‡• ’‡”ƒ–‹‰‡š’‡•‡• (20) ȋʹͲȌ ȋͳ͹Ȍ ‹ƒ ‹‰ Šƒ”‰‡• (4) ȋͶȌ ȋͶȌ ‡’”‡ ‹ƒ–‹‘ƒ†‹ ‘‡–ƒš‡• (5) ȋ͹Ȍ ȋʹȌ  (29) ȋ͵ͳȌ ȋʹ͵Ȍ ‘”’‘”ƒ–‡‘’‡”ƒ–‹‘• (41) ȋʹ͹Ȍ ȋͳ͵Ȍ  

B 12 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B12B12 116-05-126-05-12 2:012:01 PMPM      

OTHERITEMSȋǦ    Ȍ Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡’”‡•‡–•–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ‹ˆ‡ ‘ǯ•ǡ ǯ•ƒ†ƒ”‰‡•ƒǯ•–Š‡”‹–‡•ǣ

March31, ‡ ‡„‡”͵ͳǡ ƒ” Š͵ͳǡ Š”‡‡‘–Š•‡†‡† 2016 ʹͲͳͷ ʹͲͳͷ   ‡•–”— –—”‹‰ƒ†‘–Š‡” Šƒ”‰‡• Ϋ ȋͳͷȌ Ϋ ƒ”‰‡•ƒ  ‘–ƒŽȂ ƒ‹‘’ƒ”–‹ƒŽ†‹•’‘•ƒŽ 101 Ͷͺ ͻ —‡œ˜‹”‘‡‡–Ȃ ƒ‹‘‡š Šƒ‰‡ Ϋ Ϋʹ ƒˆƒ”‰‡ ‘Ž ‹Ȃ ’ƒ‹”‡– Šƒ”‰‡ (308) ΫΫ

‰‹‡Ȃ ’ƒ‹”‡– Šƒ”‰‡ (9) ΫΫ CORPORATION FINANCIAL POWER ‡”›•Ȃ ’ƒ‹”‡–ƒ†”‡•–”— –—”‹‰ Šƒ”‰‡• Ϋ ȋʹ͸Ȍ Ϋ –Š‡”ȋ Šƒ”‰‡Ȍ‹ ‘‡ (1) Ϋȋ͵Ȍ  (217) ͹ͺ PART BPART

–Š‡”‹–‡•‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸™‡”‡ƒ‹Ž› ‘’”‹•‡†‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆǣ Pargesa   ‘–ƒŽȂ ƒ‹‘’ƒ”–‹ƒŽ†‹•’‘•ƒŽ‘ˆ̈́ͳͲͳ‹ŽŽ‹‘ǣ †‹•’‘•‡†‘ˆƒͳǤͳΨ‡“—‹–›‹–‡”‡•–‹‘–ƒŽǤ  ƒˆƒ”‰‡ ‘Ž ‹Ȃ ’ƒ‹”‡– Šƒ”‰‡‘ˆ̈́͵Ͳͺ‹ŽŽ‹‘ǣƒ‘Ǧ ƒ•Š Šƒ”‰‡‘ˆ̀ͳǡͶͶ͵‹ŽŽ‹‘ƒ– †—‡–‘–Š‡ •‹‰‹ˆ‹ ƒ–†‡ ”‡ƒ•‡‘ˆ–Š‡•Šƒ”‡’”‹ ‡‘ˆƒˆƒ”‰‡ ‘Ž ‹Ǥ  ‰‹‡Ȃ ’ƒ‹”‡– Šƒ”‰‡‘ˆ̈́ͻ‹ŽŽ‹‘ǣƒ‘Ǧ ƒ•Š‹’ƒ‹”‡– Šƒ”‰‡ƒ– Ǥ

–Š‡”‹–‡•‹–Š‡ˆ‹”•–ƒ†ˆ‘—”–Š“—ƒ”–‡”•‘ˆʹͲͳͷ™‡”‡ƒ‹Ž› ‘’”‹•‡†‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆǣ IGMFinancial    ‡•–”— –—”‹‰ƒ†‘–Š‡” Šƒ”‰‡•‘ˆ̈́ͳͷ‹ŽŽ‹‘ǣ”‡ˆŽ‡ –‹‰•‡˜‡”ƒ ‡ƒ†’ƒ›‡–•–‘–Š‹”†’ƒ”–‹‡•”‡Žƒ–‡†–‘ ‡š‹–‹‰ ‡”–ƒ‹‹˜‡•–‡–ƒƒ‰‡‡–ƒ –‹˜‹–‹‡•ƒ†–Š‹”†Ǧ’ƒ”–›„ƒ ‘ˆˆ‹ ‡”‡Žƒ–‹‘•Š‹’•ƒ••‘ ‹ƒ–‡†™‹–Š ƒ ‡œ‹‡ƒ† ˜‡•–‘”• ”‘—’Ǥ Pargesa   ‘–ƒŽȂ ƒ‹‘’ƒ”–‹ƒŽ†‹•’‘•ƒŽ‘ˆ̈́ͻ‹ŽŽ‹‘ǣ †‹•’‘•‡†‘ˆƒͲǤͳΨ‡“—‹–›‹–‡”‡•–‹‘–ƒŽǤ  —‡œ˜‹”‘‡‡–Ȃ ƒ‹‘‡š Šƒ‰‡‘ˆ̈́ʹ‹ŽŽ‹‘ǣƒ‰ƒ‹”‡•—Ž–‹‰ˆ”‘†‡Ž‹˜‡”›‘ˆ—‡œ˜‹”‘‡‡– •Šƒ”‡•’—”•—ƒ––‘–Š‡‡š‡” ‹•‡‘ˆ‡š Šƒ‰‡”‹‰Š–•„› ‡”–ƒ‹Š‘Ž†‡”•‘ˆ—‡œ˜‹”‘‡‡–ǯ•‡š Šƒ‰‡ƒ„Ž‡ „‘†•Ǥ

   ‘–ƒŽȂ ƒ‹‘’ƒ”–‹ƒŽ†‹•’‘•ƒŽ‘ˆ̈́Ͷͺ‹ŽŽ‹‘ǣ †‹•’‘•‡†‘ˆƒƒ††‹–‹‘ƒŽͲǤͶΨ‡“—‹–›‹–‡”‡•–‹‘–ƒŽǤ  ‡”›•Ȃ ’ƒ‹”‡–ƒ†”‡•–”— –—”‹‰ Šƒ”‰‡•‘ˆ̈́ʹ͸‹ŽŽ‹‘ǣƒ Šƒ”‰‡”‡’”‡•‡–‹‰‘Ǧ‘’‡”ƒ–‹‰‹–‡• ”‡ ‘”†‡†„› ‡”›•ǡ ‘’”‹•‡†‘ˆ–Š‡‹’ƒ‹”‡– Šƒ”‰‡‘‹–•‹Žˆ‹‡Ž†‘Ž—–‹‘•†‹˜‹•‹‘ƒ†”‡•–”— –—”‹‰ Šƒ”‰‡•”‡Žƒ–‹‰–‘–Š‡‹–‡‰”ƒ–‹‘‘ˆƬǯ•ƒ –‹˜‹–‹‡•ȋƬ‹•ƒ‰Ž‘„ƒŽ’”‘˜‹†‡”‘ˆ‹‡”ƒŽǦ„ƒ•‡†•’‡ ‹ƒŽ–‹‡•ȌǤ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 13

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B13B13 116-05-126-05-12 2:012:01 PMPM      

FINANCIALPOSITION

CONSOLIDATEDBALANCESHEETSȋȌ Š‡ ‘†‡•‡† „ƒŽƒ ‡ •Š‡‡– ‘ˆ ‹ˆ‡ ‘ ƒ† ǡ ƒ† ‘™‡” ‹ƒ ‹ƒŽǯ• ‘Ǧ ‘•‘Ž‹†ƒ–‡† „ƒŽƒ ‡ •Š‡‡– ƒ”‡ ’”‡•‡–‡†„‡Ž‘™ǤŠ‹•–ƒ„Ž‡”‡ ‘ ‹Ž‡•–Š‡‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–ǡ™Š‹ Š‹•‘–‹ƒ ‘”†ƒ ‡™‹–Š ǡ ™‹–Š–Š‡ ‘†‡•‡† ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ–ƒ” Š͵ͳǡʹͲͳ͸Ǥ

‘™‡” ‹ˆ‡ ‘  ‘•‘Ž‹†ƒ–‹‘ ‘™‡” ‹ƒ ‹ƒŽ  ‹ƒ ‹ƒŽ   ƒ†Œ—•–‡–•ȏͳȐ  ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–• March31, ‡ ‡„‡”͵ͳǡ 2016 ʹͲͳͷ

Assets     ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ͺͶͲ ʹǡͻʹ͵ ͸Ͳ͹ ȋ͵ͻͲȌ 3,980 Ͷǡͳͺͺ ˜‡•–‡–• ͸ʹ ͳͷ͸ǡͳͳ͹ ͹ǡ͸Ͷʹ ʹͺͺ 164,109 ͳ͸͸ǡͲͳʹ ˜‡•–‡–•‹‹ˆ‡ ‘ƒ†  ͳ͸ǡͲͷ͹ ͵ͷͺ ͻ͵Ͳ ȋͳ͹ǡ͵ͶͷȌ Ϋ Ϋ ˜‡•–‡–‹ƒ”Œ‘‹– ‘ ʹǡͷͶ͵ Ϋ Ϋ Ϋ 2,543 ʹǡ͸ͳͲ

PART B PART B ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• ƒ†ƒ••‘ ‹ƒ–‡• Ϋ ʹ͸ͷ Ϋ ʹ͹ 292 ʹͻͷ —†•Š‡Ž†„› ‡†‹‰‹•—”‡”• Ϋ ͳʹǡͻͷͶ Ϋ Ϋ 12,954 ͳͷǡͷͳʹ ‡‹•—”ƒ ‡ƒ••‡–• Ϋ ͷǡͳͶͶ Ϋ Ϋ 5,144 ͷǡͳ͵ͳ

POWER FINANCIAL CORPORATION –Š‡”ƒ••‡–• ͳʹ͹ ͻǡ͹Ͳͻ ͻ͹ͺ ȋͺͺȌ 10,726 ͳͲǡͶͻͷ –ƒ‰‹„Ž‡ƒ••‡–• Ϋ ͵ǡͺ͹ͺ ͳǡͻ͹Ͷ Ϋ 5,852 ͷǡͻͺ͵ ‘‘†™‹ŽŽ Ϋ ͷǡͺͻ͸ ʹǡ͸͸Ͳ ͸͵͹ 9,193 ͻǡʹͳͲ –‡”‡•–‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—† ’‘Ž‹ ›Š‘Ž†‡”• Ϋ ͳͻ͵ǡͲͲͳ Ϋ Ϋ 193,001 ͳͻͺǡͳͻͶ ‘–ƒŽƒ••‡–• ͳͻǡ͸ʹͻ ͵ͻͲǡʹͶͷ ͳͶǡ͹ͻͳ ȋͳ͸ǡͺ͹ͳȌ 407,794 Ͷͳ͹ǡ͸͵Ͳ

Liabilities     •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• Ϋ ͳͷ͹ǡͶ͸ͺ Ϋ Ϋ 157,468 ͳ͸Ͳǡ͹Ͷͷ „Ž‹‰ƒ–‹‘•–‘•‡ —”‹–‹œƒ–‹‘‡–‹–‹‡• Ϋ Ϋ ͹ǡͳͷͷ Ϋ 7,155 ͹ǡͲͻʹ ‡„‡–—”‡•ƒ†‘–Š‡”†‡„–‹•–”—‡–• ʹͷͲ ͷǡʹͺͶ ͳǡ͵ʹͷ ȋͶ͵Ȍ 6,816 ͸ǡͻʹ͹ –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ͷͳͳ ͻǡͻ͸ͳ ͳǡͷͶʹ ȋͳʹͲȌ 11,894 ͳʹǡʹ͹Ͳ •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –•‘ƒ ‘—– ‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”• Ϋ ͳͻ͵ǡͲͲͳ Ϋ Ϋ 193,001 ͳͻͺǡͳͻͶ ‘–ƒŽŽ‹ƒ„‹Ž‹–‹‡• ͹͸ͳ ͵͸ͷǡ͹ͳͶ ͳͲǡͲʹʹ ȋͳ͸͵Ȍ 376,334 ͵ͺͷǡʹʹͺ

Equity     ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• ʹǡͷͺͲ ʹǡͷͳͶ ͳͷͲ ȋʹǡ͸͸ͶȌ 2,580 ʹǡͷͺͲ ‘‘•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–› ͳ͸ǡʹͺͺ ͳͻǡͳ͸ͳ Ͷǡ͸ͳͻ ȋʹ͵ǡ͹ͺͲȌ 16,288 ͳ͸ǡͻ͹Ͳ ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ȏʹǡ͵Ȑ Ϋ ʹǡͺͷ͸ Ϋ ͻǡ͹͵͸ 12,592 ͳʹǡͺͷʹ ‘–ƒŽ‡“—‹–› ͳͺǡͺ͸ͺ ʹͶǡͷ͵ͳ Ͷǡ͹͸ͻ ȋͳ͸ǡ͹ͲͺȌ 31,460 ͵ʹǡͶͲʹ ‘–ƒŽŽ‹ƒ„‹Ž‹–‹‡•ƒ†‡“—‹–› ͳͻǡ͸ʹͻ ͵ͻͲǡʹͶͷ ͳͶǡ͹ͻͳ ȋͳ͸ǡͺ͹ͳȌ 407,794 Ͷͳ͹ǡ͸͵Ͳ

ȏͳȐ‘•‘Ž‹†ƒ–‹‘ƒ†Œ—•–‡–•‹ Ž—†‡‡Ž‹‹ƒ–‹‘•ƒ†”‡ Žƒ••‹ˆ‹ ƒ–‹‘•Ǥ ȏʹȐ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ˆ‘”‹ˆ‡ ‘‹ Ž—†‡•–Š‡ƒ”–‹ ‹’ƒ–‹‰ ‘—–•—”’Ž—•‹•—„•‹†‹ƒ”‹‡•Ǥ ȏ͵Ȑ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ˆ‘” ‘•‘Ž‹†ƒ–‹‘ƒ†Œ—•–‡–•”‡’”‡•‡–•‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•‹–Š‡‡“—‹–›‘ˆ‹ˆ‡ ‘ƒ† Ǥ

‘–ƒŽƒ••‡–•‘ˆ–Š‡‘”’‘”ƒ–‹‘†‡ ”‡ƒ•‡†–‘̈́ͶͲ͹Ǥͺ„‹ŽŽ‹‘ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́Ͷͳ͹Ǥ͸„‹ŽŽ‹‘ƒ– ‡ ‡„‡”͵ͳǡʹͲͳͷǡƒ‹Ž›†—‡–‘–Š‡ˆ‘ŽŽ‘™‹‰ǣ  ˜‡•–‡–• ƒ– ƒ” Š ͵ͳǡ ʹͲͳ͸ ™‡”‡ ̈́ͳ͸ͶǤͳ „‹ŽŽ‹‘ǡ ƒ ̈́ͳǤͻ „‹ŽŽ‹‘ †‡ ”‡ƒ•‡ ˆ”‘ ‡ ‡„‡” ͵ͳǡ ʹͲͳͷǡ ’”‹ƒ”‹Ž›†—‡–‘–Š‡‹’ƒ –‘ˆ —””‡ ›‘˜‡‡–•ƒ•–Š‡ƒƒ†‹ƒ †‘ŽŽƒ” •–”‡‰–Š‡‡† ƒ‰ƒ‹•– –Š‡ ǤǤ†‘ŽŽƒ”ǡ‡—”‘ƒ†”‹–‹•Š’‘—†Ǥ  –‡”‡•–‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•†‡ ”‡ƒ•‡†„›̈́ͷǤʹ„‹ŽŽ‹‘ǡ’”‹ƒ”‹Ž›†—‡–‘–Š‡‹’ƒ –‘ˆ —””‡ ›‘˜‡‡–•Ǥ 

B 14 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B14B14 116-05-126-05-12 2:012:01 PMPM      

‹ƒ„‹Ž‹–‹‡•†‡ ”‡ƒ•‡†–‘̈́͵͹͸Ǥ͵„‹ŽŽ‹‘ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́͵ͺͷǤʹ„‹ŽŽ‹‘ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷǡ ƒ‹Ž›†—‡–‘–Š‡ˆ‘ŽŽ‘™‹‰ǡƒ•†‹• Ž‘•‡†„›‹ˆ‡ ‘ǣ  •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•†‡ ”‡ƒ•‡†„›̈́͵Ǥ͵„‹ŽŽ‹‘ǡ’”‹ƒ”‹Ž›†—‡–‘–Š‡•–”‡‰–Š‡‹‰‘ˆ –Š‡ƒƒ†‹ƒ†‘ŽŽƒ”ƒ‰ƒ‹•––Š‡ǤǤ†‘ŽŽƒ”ǡ‡—”‘ƒ†”‹–‹•Š’‘—†ǡ’ƒ”–‹ƒŽŽ›‘ˆˆ•‡–„›–Š‡‹’ƒ –‘ˆˆƒ‹”˜ƒŽ—‡ ƒ†Œ—•–‡–•Ǥ  •—”ƒ ‡ ƒ† ‹˜‡•–‡– ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡• ‘ ƒ ‘—– ‘ˆ •‡‰”‡‰ƒ–‡† ˆ—† ’‘Ž‹ ›Š‘Ž†‡”• †‡ ”‡ƒ•‡† „› ̈́ͷǤʹ„‹ŽŽ‹‘ǡ’”‹ƒ”‹Ž›†—‡–‘–Š‡‹’ƒ –‘ˆ —””‡ ›‘˜‡‡–•‘ˆ̈́ͷǤ͹„‹ŽŽ‹‘ǡ’ƒ”–‹ƒŽŽ›‘ˆˆ•‡–„›‡–†‡’‘•‹–• ‘ˆ̈́ͲǤͷ„‹ŽŽ‹‘Ǥ

ƒ”–•ƒ†‘ˆ–Š‹•Ƭ‹ Ž—†‡ƒ†‹• —••‹‘‘ˆ–Š‡ ‘•‘Ž‹†ƒ–‡† „ƒŽƒ ‡ •Š‡‡–• ‘ˆ ‹ˆ‡ ‘ ƒ† ǡ CORPORATION FINANCIAL POWER ”‡•’‡ –‹˜‡Ž›Ǥ

NON-CONSOLIDATEDBALANCESHEETS  –Š‡‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒ•‹• ‘ˆ ’”‡•‡–ƒ–‹‘ •Š‘™ „‡Ž‘™ǡ ‹ˆ‡ ‘ƒ† ƒ”‡’”‡•‡–‡†„›–Š‡‘”’‘”ƒ–‹‘ BPART —•‹‰–Š‡‡“—‹–›‡–Š‘†ǤŠ‡•‡‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–•ǡ™Š‹ Šƒ”‡‘–‹ƒ ‘”†ƒ ‡™‹–Š ǡ‡Šƒ ‡ –Š‡Ƭƒ†ƒ••‹•––Š‡”‡ƒ†‡”„›‹†‡–‹ˆ›‹‰ Šƒ‰‡•‹‘™‡” ‹ƒ ‹ƒŽǯ• ‘Ǧ ‘•‘Ž‹†ƒ–‡† „ƒŽƒ ‡ •Š‡‡–•ǡ ™Š‹ Š‹ Ž—†‡‹–•‹˜‡•–‡–•‹‹ˆ‡ ‘ƒ† ƒ–‡“—‹–›Ǥ  March31, ‡ ‡„‡”͵ͳǡ  2016 ʹͲͳͷ

Assets  ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ȏͳȐ840 ͺ͹Ͳ ˜‡•–‡–• 62 ͷͷ ˜‡•–‡–•‹‹ˆ‡ ‘ƒ† ǡƒ–‡“—‹–›   16,057 ͳ͸ǡ͸͵ͳ ˜‡•–‡–‹ƒ”Œ‘‹– ‘ƒ–‡“—‹–›   2,543 ʹǡ͸ͳͲ –Š‡”ƒ••‡–• 127 ͳʹ͵ ‘–ƒŽƒ••‡–• 19,629 ʹͲǡʹͺͻ

Liabilities  ‡„‡–—”‡• 250 ʹͷͲ –Š‡”Ž‹ƒ„‹Ž‹–‹‡• 511 Ͷͺͻ ‘–ƒŽŽ‹ƒ„‹Ž‹–‹‡• 761 ͹͵ͻ

Equity  ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡•   2,580 ʹǡͷͺͲ ‘‘•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›   16,288 ͳ͸ǡͻ͹Ͳ ‘–ƒŽ‡“—‹–› 18,868 ͳͻǡͷͷͲ ‘–ƒŽŽ‹ƒ„‹Ž‹–‹‡•ƒ†‡“—‹–›   19,629 ʹͲǡʹͺͻ

ȏͳȐ –Š‡•‡‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–•ǡ ƒ•Š‡“—‹˜ƒŽ‡–•‹ Ž—†‡̈́͵ͻͲ‹ŽŽ‹‘ȋ̈́Ͷ͹ͺ‹ŽŽ‹‘ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷȌ‘ˆˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡• ™‹–Šƒ–—”‹–‹‡•‘ˆ‘”‡–ŠƒͻͲ†ƒ›•ǤŠ‹•ƒ‘—–‹• Žƒ••‹ˆ‹‡†‹‹˜‡•–‡–•‹–Š‡ –‡”‹‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡–•Ǥ

Cashandcashequivalents ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Š‡Ž†„›‘™‡” ‹ƒ ‹ƒŽƒ‘—–‡†–‘̈́ͺͶͲ‹ŽŽ‹‘ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š ̈́ͺ͹Ͳ‹ŽŽ‹‘ƒ––Š‡‡†‘ˆ‡ ‡„‡”ʹͲͳͷǤŠ‡ˆ‹”•–“—ƒ”–‡”†‹˜‹†‡†•†‡ Žƒ”‡†„›–Š‡‘”’‘”ƒ–‹‘ƒ†’ƒ‹†‘ ’”‹Ž ʹͻǡ ʹͲͳ͸ ƒ”‡ ‹ Ž—†‡† ‹ ‘–Š‡” Ž‹ƒ„‹Ž‹–‹‡• ƒ† ƒ‘—–‡† –‘ ̈́͵ͳͳ ‹ŽŽ‹‘Ǥ ‹˜‹†‡†• †‡ Žƒ”‡† ‹ –Š‡ ˆ‹”•– “—ƒ”–‡”„› ƒ†”‡ ‡‹˜‡†„›–Š‡‘”’‘”ƒ–‹‘‘’”‹ŽʹͻǡʹͲͳ͸ƒ”‡‹ Ž—†‡†‹‘–Š‡”ƒ••‡–•ƒ†ƒ‘—–‡†–‘ ̈́ͺ͵‹ŽŽ‹‘ȋ•‡‡Dz‘Ǧ ‘•‘Ž‹†ƒ–‡†–ƒ–‡‡–•‘ˆƒ•Š Ž‘™•dz„‡Ž‘™ˆ‘”†‡–ƒ‹Ž•ȌǤ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 15

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B15B15 116-05-126-05-12 2:012:01 PMPM      

InvestmentinSubsidiariesandParjointco Š‡ ƒ””›‹‰ ˜ƒŽ—‡ ‘ˆ ‘™‡” ‹ƒ ‹ƒŽǯ• ‹˜‡•–‡–• ‹ ‹ˆ‡ ‘ǡ  ƒ† ƒ”Œ‘‹– ‘ǡ ƒ– ‡“—‹–›ǡ †‡ ”‡ƒ•‡† –‘ ̈́ͳͺǡ͸ͲͲ‹ŽŽ‹‘ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́ͳͻǡʹͶͳ‹ŽŽ‹‘ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷǣ

 ‹ˆ‡ ‘  ƒ”Œ‘‹– ‘ ‘–ƒŽ ƒ””›‹‰˜ƒŽ—‡ǡƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ” ͳ͵ǡ͹Ͷͻ ʹǡͺͺʹ ʹǡ͸ͳͲ ͳͻǡʹͶͳ Šƒ”‡‘ˆ‘’‡”ƒ–‹‰‡ƒ”‹‰• Ͷͳͻ ͳͲͲ ʹͻ ͷͶͺ Šƒ”‡‘ˆ‘–Š‡”‹–‡• Ϋ Ϋ ȋʹͳ͹Ȍ ȋʹͳ͹Ȍ Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ ȋ͸͹͹Ȍ ȋ͵͹Ȍ ͳʹͳ ȋͷͻ͵Ȍ ‹˜‹†‡†• ȋʹ͵ʹȌ ȋͺ͵Ȍ Ϋ ȋ͵ͳͷȌ –Š‡”ǡƒ‹Ž›”‡Žƒ–‡†–‘‡ˆˆ‡ –•‘ˆ Šƒ‰‡‹‘™‡”•Š‹’ ȋ͵ͶȌ ȋ͵ͲȌ Ϋ ȋ͸ͶȌ ƒ””›‹‰˜ƒŽ—‡ǡƒ–ƒ” Š͵ͳǡʹͲͳ͸ ͳ͵ǡʹʹͷ ʹǡͺ͵ʹ ʹǡͷͶ͵ ͳͺǡ͸ͲͲ

EQUITY Preferredshares ”‡ˆ‡””‡†•Šƒ”‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ ‘•‹•–‘ˆͳͲ•‡”‹‡•‘ˆ‘Ǧ——Žƒ–‹˜‡ ‹š‡†ƒ–‡ ‹”•–”‡ˆ‡””‡†Šƒ”‡•ǡ–™‘

PART B PART B •‡”‹‡•‘ˆ‘Ǧ——Žƒ–‹˜‡ͷǦ›‡ƒ”ƒ–‡ ‡•‡–”‡ˆ‡””‡†Šƒ”‡•ǡ ƒ†–™‘•‡”‹‡•‘ˆ‘Ǧ——Žƒ–‹˜‡ Ž‘ƒ–‹‰ƒ–‡ ‹”•– ”‡ˆ‡””‡† Šƒ”‡•ǡ ™‹–Š ƒ ƒ‰‰”‡‰ƒ–‡ •–ƒ–‡† ƒ’‹–ƒŽ ‘ˆ ̈́ʹǡͷͺͲ‹ŽŽ‹‘ ƒ– ƒ” Š ͵ͳǡ ʹͲͳ͸ ȋ•ƒ‡ ƒ• ƒ– ‡ ‡„‡”͵ͳǡʹͲͳͷȌǤŽŽ•‡”‹‡•ƒ”‡’‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡•ƒ†ƒ”‡”‡†‡‡ƒ„Ž‡‹™Š‘Ž‡‘”‹’ƒ”–•‘Ž‡Ž›ƒ– –Š‡‘”’‘”ƒ–‹‘ǯ•‘’–‹‘ˆ”‘•’‡ ‹ˆ‹‡††ƒ–‡•Ǥ POWER FINANCIAL CORPORATION  ‡„”—ƒ”›ͳǡʹͲͳ͸ǡʹǡʹ͵Ͷǡͷͳͷ‘ˆ‹–•‘—–•–ƒ†‹‰ͳͳǡʹͲͲǡͲͲͲ‘Ǧ——Žƒ–‹˜‡ͷǦ›‡ƒ”ƒ–‡‡•‡– ‹”•–”‡ˆ‡””‡† Šƒ”‡•ǡ ‡”‹‡•  ™‡”‡ ‘˜‡”–‡†ǡ ‘ ƒ ‘‡Ǧˆ‘”Ǧ‘‡ „ƒ•‹•ǡ ‹–‘ ‘Ǧ——Žƒ–‹˜‡ Ž‘ƒ–‹‰ ƒ–‡ ‹”•– ”‡ˆ‡””‡† Šƒ”‡•ǡ‡”‹‡•Ǥ Š‡–‡”•ƒ† ‘†‹–‹‘•‘ˆ–Š‡‘—–•–ƒ†‹‰ ‹”•–”‡ˆ‡””‡†Šƒ”‡•ƒ”‡†‡• ”‹„‡†‹‘–‡ͳ͹–‘–Š‡‘”’‘”ƒ–‹‘ǯ• ʹͲͳͷ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡–•Ǥ Commonshareholders’equity ‘‘ •Šƒ”‡Š‘Ž†‡”•ǯ ‡“—‹–› ™ƒ• ̈́ͳ͸ǡʹͺͺ ‹ŽŽ‹‘ ƒ– ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡† ™‹–Š ̈́ͳ͸ǡͻ͹Ͳ ‹ŽŽ‹‘ ƒ– ‡ ‡„‡”͵ͳǡʹͲͳͷǣ

Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳ 2016 ʹͲͳͷ ‘‘•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›ǡƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ” 16,970 ͳͶǡͶ͵ͻ Šƒ‰‡•‹”‡–ƒ‹‡†‡ƒ”‹‰•   ‡–‡ƒ”‹‰• 290 ͸Ͳ͸ ‹˜‹†‡†•†‡ Žƒ”‡† (311) ȋʹͻͻȌ ˆˆ‡ –•‘ˆ Šƒ‰‡•‹‘™‡”•Š‹’‹•—„•‹†‹ƒ”‹‡•ƒ†‘–Š‡” (45) ȋʹȌ  (66) ͵Ͳͷ Šƒ‰‡•‹”‡•‡”˜‡•   –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ  ‘”‡‹‰ —””‡ ›–”ƒ•Žƒ–‹‘ƒ†Œ—•–‡–• (667) ͷʹͺ ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ƒ••‡–•ƒ† ƒ•ŠˆŽ‘™Š‡†‰‡• 87 ȋͶ͸Ȍ  –—ƒ”‹ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ”‡Žƒ–‡†–‘„‡‡ˆ‹–’Žƒ• (144) ȋͳʹͻȌ Šƒ”‡‘ˆƒ”‰‡•ƒǯ•ƒ†‘–Š‡”ƒ••‘ ‹ƒ–‡•ǯ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ 127 ͷͶ Šƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘ (19) ȋ͵ͳȌ  (616) ͵͹͸ ••—ƒ ‡‘ˆ ‘‘•Šƒ”‡•ȋ‘‡‹ʹͲͳ͸ƒ†ͳǡͷͳͷǡͲͲͲ•Šƒ”‡•‹ʹͲͳͷȌ—†‡”–Š‡‘”’‘”ƒ–‹‘ǯ•  ’Ž‘›‡‡–‘ ’–‹‘ŽƒȏͳȐ Ϋ ͸ͳ ‘‘•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›ƒ–ƒ” Š͵ͳ 16,288 ͳͷǡͳͺͳ

ȏͳȐ ••—‡†ˆ‘”̈́Ͷͻ‹ŽŽ‹‘‹ʹͲͳͷƒ†‹ Ž—†‹‰ƒƒ‘—–‘ˆ̈́ͳʹ‹ŽŽ‹‘”‡’”‡•‡–‹‰–Š‡ ——Žƒ–‹˜‡‡š’‡•‡•”‡Žƒ–‡†–‘–Š‡•‡‘’–‹‘•Ǥ

Š‡„‘‘˜ƒŽ—‡’‡” ‘‘•Šƒ”‡‘ˆ–Š‡‘”’‘”ƒ–‹‘™ƒ•̈́ʹʹǤͺͶƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Š̈́ʹ͵Ǥ͹ͻƒ– –Š‡‡†‘ˆʹͲͳͷǤ  

B 16 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

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Outstandingnumberofcommonshares •‘ˆ–Š‡†ƒ–‡‘ˆ–Š‹•Ƭǡ–Š‡”‡™‡”‡͹ͳ͵ǡʹ͵ͺǡ͸ͺͲ ‘‘•Šƒ”‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘‘—–•–ƒ†‹‰ǡ–Š‡•ƒ‡ƒ• ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷǤ•‘ˆ–Š‡†ƒ–‡‘ˆ–Š‹•Ƭǡ‘’–‹‘•™‡”‡‘—–•–ƒ†‹‰–‘’—” Šƒ•‡—’–‘ƒƒ‰‰”‡‰ƒ–‡‘ˆ ͳͲǡ͵͹ͲǡͶͲͺ ‘‘•Šƒ”‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘—†‡”–Š‡‘”’‘”ƒ–‹‘ǯ•’Ž‘›‡‡–‘ ’–‹‘ŽƒǤ Š‡ ‘”’‘”ƒ–‹‘ ˆ‹Ž‡† ƒ •Š‘”–Ǧˆ‘” „ƒ•‡ •Š‡Žˆ ’”‘•’‡ –—• †ƒ–‡† ‘˜‡„‡” ʹͶǡ ʹͲͳͶǡ ’—”•—ƒ– –‘ ™Š‹ Šǡ ˆ‘” ƒ ’‡”‹‘† ‘ˆ ʹͷ ‘–Š• –Š‡”‡ƒˆ–‡”ǡ –Š‡ ‘”’‘”ƒ–‹‘ ƒ› ‹••—‡ —’ –‘ ƒ ƒ‰‰”‡‰ƒ–‡ ‘ˆ ̈́͵ „‹ŽŽ‹‘ ‘ˆ ‹”•– ”‡ˆ‡””‡† Šƒ”‡•ǡ ‘‘•Šƒ”‡•ǡ•—„• ”‹’–‹‘”‡ ‡‹’–•ƒ†—•‡ —”‡††‡„–•‡ —”‹–‹‡•ǡ‘”ƒ› ‘„‹ƒ–‹‘–Š‡”‡‘ˆǤŠ‹• ˆ‹Ž‹‰’”‘˜‹†‡•–Š‡‘”’‘”ƒ–‹‘™‹–Š–Š‡ˆŽ‡š‹„‹Ž‹–›–‘ƒ ‡••†‡„–ƒ†‡“—‹–›ƒ”‡–•‘ƒ–‹‡Ž›„ƒ•‹•Ǥ POWER FINANCIAL CORPORATION FINANCIAL POWER CASHFLOWS

CONSOLIDATEDSTATEMENTSOFCASHFLOWSȋȌ Š‡ ‘†‡•‡† ƒ•Š ˆŽ‘™ ‘ˆ ‹ˆ‡ ‘ ƒ† ǡ ƒ† ‘™‡” ‹ƒ ‹ƒŽǯ• ‘Ǧ ‘•‘Ž‹†ƒ–‡† ƒ•Š ˆŽ‘™ǡ ƒ”‡ ’”‡•‡–‡† BPART „‡Ž‘™ǤŠ‹•–ƒ„Ž‡”‡ ‘ ‹Ž‡•–Š‡‘Ǧ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–‘ˆ ƒ•ŠˆŽ‘™•ǡ™Š‹ Š‹•‘–‹ƒ ‘”†ƒ ‡™‹–Š ǡ –‘ –Š‡ ‘†‡•‡† ‘•‘Ž‹†ƒ–‡† •–ƒ–‡‡– ‘ˆ ƒ•Š ˆŽ‘™• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ ˆ‘” –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š͵ͳǡʹͲͳ͸Ǥ

‘™‡” ‹ˆ‡ ‘  ‘•‘Ž‹†ƒ–‹‘ ‘™‡” ‹ƒ ‹ƒŽ  ‹ƒ ‹ƒŽ ƒ†Œ—•–‡–• ‘•‘Ž‹†ƒ–‡† ƒ•ŠˆŽ‘™• Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳ 2016 ʹͲͳͷ ƒ•ŠˆŽ‘™ˆ”‘ǣ  ’‡”ƒ–‹‰ƒ –‹˜‹–‹‡• ʹͺͶ ͳǡ͵͸͸ ͶͲ ȋ͵͵ͶȌ 1,356 ͳǡͳͻͺ ‹ƒ ‹‰ƒ –‹˜‹–‹‡• ȋʹͻͺȌ ȋͶͳ͵Ȍ ȋͳͺͺȌ ͵͵Ͷ (565) ȋͷͳͻȌ ˜‡•–‹‰ƒ –‹˜‹–‹‡• ȋͳ͸Ȍ ȋ͹ͲͺȌ ȋʹʹͺȌ ͺͺ (864) ȋͺʹȌ ˆˆ‡ –‘ˆ Šƒ‰‡•‹‡š Šƒ‰‡”ƒ–‡•‘ ƒ•Š  ƒ† ƒ•Š‡“—‹˜ƒŽ‡–• Ϋ ȋͳ͵ͷȌ Ϋ Ϋ (135) ͻͳ  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ȋ͵ͲȌ ͳͳͲ ȋ͵͹͸Ȍ ͺͺ (208) ͸ͺͺ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ  ƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ” ͺ͹Ͳ ʹǡͺͳ͵ ͻͺ͵ ȋͶ͹ͺȌ 4,188 ͵ǡͻͺͻ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡƒ–ƒ” Š͵ͳ ͺͶͲ ʹǡͻʹ͵ ͸Ͳ͹ ȋ͵ͻͲȌ 3,980 Ͷǡ͸͹͹  ƒ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•ǡ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•†‡ ”‡ƒ•‡†„›̈́ʹͲͺ‹ŽŽ‹‘‹–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡† ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‹ ”‡ƒ•‡‘ˆ̈́͸ͺͺ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ ’‡”ƒ–‹‰ƒ –‹˜‹–‹‡•’”‘†— ‡†ƒ‡–‹ˆŽ‘™‘ˆ̈́ͳǡ͵ͷ͸‹ŽŽ‹‘‹–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‡–‹ˆŽ‘™‘ˆ̈́ͳǡͳͻͺ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ ƒ•ŠˆŽ‘™•ˆ”‘ˆ‹ƒ ‹‰ƒ –‹˜‹–‹‡•ǡ™Š‹ Š‹ Ž—†‡†‹˜‹†‡†•’ƒ‹†‘–Š‡ ‘‘ƒ†’”‡ˆ‡””‡†•Šƒ”‡•‘ˆ–Š‡ ‘”’‘”ƒ–‹‘ ƒ† †‹˜‹†‡†• ’ƒ‹† „› •—„•‹†‹ƒ”‹‡• –‘ ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ǡ”‡’”‡•‡–‡†ƒ‡–‘—–ˆŽ‘™‘ˆ ̈́ͷ͸ͷ‹ŽŽ‹‘‹–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‡–‘—–ˆŽ‘™‘ˆ̈́ͷͳͻ‹ŽŽ‹‘‹ –Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ ƒ•ŠˆŽ‘™•ˆ”‘‹˜‡•–‹‰ƒ –‹˜‹–‹‡•”‡•—Ž–‡†‹ƒ‡–‘—–ˆŽ‘™‘ˆ̈́ͺ͸Ͷ‹ŽŽ‹‘‹–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡† ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‡–‘—–ˆŽ‘™‘ˆ̈́ͺʹ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ Š‡‘”’‘”ƒ–‹‘†‡ ”‡ƒ•‡†‹–•Ž‡˜‡Ž‘ˆˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•™‹–Šƒ–—”‹–‹‡•‘ˆ‘”‡–ŠƒͻͲ†ƒ›•ǡ”‡•—Ž–‹‰‹ƒ ‡– ‹ˆŽ‘™ ‘ˆ ̈́ͺͺ ‹ŽŽ‹‘ ‹ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡† ™‹–Š ƒ ‡– ‹ˆŽ‘™ ‘ˆ ̈́ʹͷ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ ƒ”–•ƒ†‘ˆ–Š‹•Ƭ‹ Ž—†‡ƒ†‹• —••‹‘‘ˆ–Š‡ ƒ•ŠˆŽ‘™•‘ˆ‹ˆ‡ ‘ƒ† ǡ”‡•’‡ –‹˜‡Ž›Ǥ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 17

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B17B17 116-05-126-05-12 2:012:01 PMPM      

NON-CONSOLIDATEDSTATEMENTSOFCASHFLOWS •‘™‡” ‹ƒ ‹ƒŽ‹•ƒŠ‘Ž†‹‰ ‘’ƒ›ǡ ‘”’‘”ƒ–‡ ƒ•ŠˆŽ‘™•ƒ”‡’”‹ƒ”‹Ž› ‘’”‹•‡†‘ˆ†‹˜‹†‡†•”‡ ‡‹˜‡† ˆ”‘‹ˆ‡ ‘ǡ ƒ†ƒ”Œ‘‹– ‘ƒ†‹ ‘‡ˆ”‘‹˜‡•–‡–•ǡŽ‡•• ‘’‡”ƒ–‹‰ ‡š’‡•‡•ǡ ˆ‹ƒ ‹‰ Šƒ”‰‡•ǡ ‹ ‘‡–ƒš‡•ǡƒ†’”‡ˆ‡””‡†ƒ† ‘‘•Šƒ”‡†‹˜‹†‡†•Ǥ Š‡ˆ‘ŽŽ‘™‹‰‘Ǧ ‘•‘Ž‹†ƒ–‡† ƒ•ŠˆŽ‘™••–ƒ–‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ǡ™Š‹ Š‹•‘–’”‡•‡–‡†‹ƒ ‘”†ƒ ‡ ™‹–Š ǡŠƒ•„‡‡’”‡’ƒ”‡†–‘ƒ••‹•––Š‡”‡ƒ†‡”ƒ•‹–‹•‘Žƒ–‡•–Š‡ ƒ•ŠˆŽ‘™•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡ–Š‡’ƒ”‡– ‘’ƒ›Ǥ Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳ 2016 ʹͲͳͷ Operatingactivities  ‡–‡ƒ”‹‰•„‡ˆ‘”‡†‹˜‹†‡†•‘’‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• 290 ͸Ͳ͸ †Œ—•–‹‰‹–‡•  ƒ”‹‰•ˆ”‘‹ˆ‡ ‘ǡ ƒ†ƒ”Œ‘‹– ‘‘–”‡ ‡‹˜‡†‹ ƒ•Š (16) ȋ͵ͳͺȌ –Š‡” 10 ͸  284 ʹͻͶ Financingactivities 

PART B PART B ‹˜‹†‡†•’ƒ‹†‘’”‡ˆ‡””‡†•Šƒ”‡• (32) ȋ͵͵Ȍ ‹˜‹†‡†•’ƒ‹†‘ ‘‘•Šƒ”‡• (266) ȋʹͶͻȌ ••—ƒ ‡‘ˆ ‘‘•Šƒ”‡• Ϋ Ͷͻ  (298) ȋʹ͵͵Ȍ POWER FINANCIAL CORPORATION Investingactivities  ˜‡•–‡–‹‡ƒŽ–Š•‹’Ž‡ (13) Ϋ –Š‡” (3) ȋͶȌ  (16) ȋͶȌ  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• (30) ͷ͹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡƒ––Š‡„‡‰‹‹‰‘ˆ–Š‡›‡ƒ” 870 ͹ͺ͸ Cashandcashequivalents,atMarch31 840 ͺͶ͵

ƒ‘Ǧ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•ǡ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•†‡ ”‡ƒ•‡† „› ̈́͵Ͳ ‹ŽŽ‹‘ ‹ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‹ ”‡ƒ•‡‘ˆ̈́ͷ͹‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǤ ’‡”ƒ–‹‰ ƒ –‹˜‹–‹‡• ’”‘†— ‡† ƒ ‡– ‹ˆŽ‘™ ‘ˆ ̈́ʹͺͶ ‹ŽŽ‹‘ ‹ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘’ƒ”‡†™‹–Šƒ‡–‹ˆŽ‘™‘ˆ̈́ʹͻͶ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǤ

 ‹˜‹†‡†•†‡ Žƒ”‡†„›‹ˆ‡ ‘‘‹–• ‘‘•Šƒ”‡•†—”‹‰–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ ™‡”‡̈́ͲǤ͵Ͷ͸Ͳ’‡”•Šƒ”‡ǡ ‘’ƒ”‡†™‹–Š̈́ͲǤ͵ʹ͸Ͳ‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ –Š‡–Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ –Š‡ ‘”’‘”ƒ–‹‘ ”‡ ‘”†‡† †‹˜‹†‡†• ˆ”‘ ‹ˆ‡ ‘ ‘ˆ ̈́ʹ͵ʹ‹ŽŽ‹‘ǡ ‘’ƒ”‡† ™‹–Š̈́ʹͳͺ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ

 ‹˜‹†‡†•†‡ Žƒ”‡†„› ‘‹–• ‘‘•Šƒ”‡•†—”‹‰–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡ ̈́ͲǤͷ͸ʹͷ’‡”•Šƒ”‡ǡ–Š‡•ƒ‡ƒ•‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ –Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ –Š‡ ‘”’‘”ƒ–‹‘ ”‡ ‡‹˜‡† †‹˜‹†‡†• ˆ”‘  ‘ˆ ̈́ͺ͵‹ŽŽ‹‘ǡ –Š‡ •ƒ‡ ƒ• ‹ –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘†‘ˆʹͲͳͷǤ

 ƒ”‰‡•ƒ†‡ Žƒ”‡•ƒ†’ƒ›•ƒƒ—ƒŽ†‹˜‹†‡†‹–Š‡•‡ ‘†“—ƒ”–‡”‡†‹‰ —‡͵ͲǤŠ‡†‹˜‹†‡†’ƒ‹†„› ƒ”‰‡•ƒ–‘ƒ”Œ‘‹– ‘‘ƒ›ͳͲǡʹͲͳ͸ǡƒ‘—–‡†–‘ ʹǤ͵ͺ’‡”„‡ƒ”‡”•Šƒ”‡ǡ ‘’ƒ”‡†™‹–Š ʹǤʹ͹‹ʹͲͳͷǤ 

B 18 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B18B18 116-05-126-05-12 2:012:01 PMPM      

Š‡‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹‰ƒ –‹˜‹–‹‡•†—”‹‰–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡ƒ‡–‘—–ˆŽ‘™‘ˆ ̈́ʹͻͺ‹ŽŽ‹‘ǡ ‘’ƒ”‡†™‹–Šƒ‡–‘—–ˆŽ‘™‘ˆ̈́ʹ͵͵‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‹ʹͲͳͷǡƒ†‹ Ž—†‡†ǣ

 ‹˜‹†‡†• ’ƒ‹† ‘ ’”‡ˆ‡””‡† ƒ† ‘‘ •Šƒ”‡• „› –Š‡ ‘”’‘”ƒ–‹‘ ‘ˆ ̈́ʹͻͺ ‹ŽŽ‹‘ǡ ‘’ƒ”‡† ™‹–Š ̈́ʹͺʹ‹ŽŽ‹‘ ‹ –Š‡ ‘””‡•’‘†‹‰ ’‡”‹‘† ‘ˆ ʹͲͳͷǤ  –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ †‹˜‹†‡†•†‡ Žƒ”‡†‘–Š‡‘”’‘”ƒ–‹‘ǯ• ‘‘•Šƒ”‡•™‡”‡̈́ͲǤ͵ͻʹͷ’‡”•Šƒ”‡ǡ ‘’ƒ”‡†™‹–Š̈́ͲǤ͵͹ʹͷ ’‡”•Šƒ”‡‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ

 ‘‹••—ƒ ‡‘ˆ ‘‘•Šƒ”‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘’—”•—ƒ––‘–Š‡‘”’‘”ƒ–‹‘ǯ•’Ž‘›‡‡–‘ ’–‹‘Žƒǡ ‘’ƒ”‡†™‹–Š̈́Ͷͻ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ Š‡‘”’‘”ƒ–‹‘ǯ•‹˜‡•–‹‰ƒ –‹˜‹–‹‡•†—”‹‰–Š‡–Š”‡‡Ǧ‘–Š’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸”‡’”‡•‡–‡†ƒ‡– CORPORATION FINANCIAL POWER ‘—–ˆŽ‘™‘ˆ̈́ͳ͸‹ŽŽ‹‘ǡ ‘’ƒ”‡†™‹–Šƒ‡–‘—–ˆŽ‘™‘ˆ̈́Ͷ‹ŽŽ‹‘‹–Š‡ ‘””‡•’‘†‹‰’‡”‹‘†‘ˆʹͲͳͷǤ

CAPITALMANAGEMENT BPART •ƒŠ‘Ž†‹‰ ‘’ƒ›ǡ‘™‡” ‹ƒ ‹ƒŽǯ•‘„Œ‡ –‹˜‡•‹ƒƒ‰‹‰‹–• ƒ’‹–ƒŽƒ”‡–‘ǣ

 ’”‘˜‹†‡ƒ––”ƒ –‹˜‡Ž‘‰Ǧ–‡””‡–—”•–‘•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǣ

 ’”‘˜‹†‡•—ˆˆ‹ ‹‡–ˆ‹ƒ ‹ƒŽˆŽ‡š‹„‹Ž‹–›–‘’—”•—‡‹–•‰”‘™–Š•–”ƒ–‡‰›–‘‹˜‡•–‘ƒ–‹‡Ž›„ƒ•‹•‹‹–•‘’‡”ƒ–‹‰ ‘’ƒ‹‡•ƒ†‘–Š‡”‹˜‡•–‡–•ƒ•‘’’‘”–—‹–‹‡•’”‡•‡–Ǣƒ†

 ƒ‹–ƒ‹ƒƒ’’”‘’”‹ƒ–‡ ”‡†‹–”ƒ–‹‰–‘‡•—”‡•–ƒ„Ž‡ƒ ‡••–‘–Š‡ ƒ’‹–ƒŽƒ”‡–•Ǥ Š‡‘”’‘”ƒ–‹‘ƒƒ‰‡•‹–• ƒ’‹–ƒŽ–ƒ‹‰‹–‘ ‘•‹†‡”ƒ–‹‘–Š‡”‹• Šƒ”ƒ –‡”‹•–‹ •ƒ†Ž‹“—‹†‹–›‘ˆ‹–•Š‘Ž†‹‰•Ǥ ‘”†‡”–‘ƒ‹–ƒ‹‘”ƒ†Œ—•–‹–• ƒ’‹–ƒŽ•–”— –—”‡ǡ–Š‡‘”’‘”ƒ–‹‘ƒ›ƒ†Œ—•––Š‡ƒ‘—–‘ˆ†‹˜‹†‡†•’ƒ‹†–‘ •Šƒ”‡Š‘Ž†‡”•ǡ”‡–—” ƒ’‹–ƒŽ–‘•Šƒ”‡Š‘Ž†‡”•‘”‹••—‡ ƒ’‹–ƒŽǤ Š‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘‹•”‡•’‘•‹„Ž‡ˆ‘” ƒ’‹–ƒŽƒƒ‰‡‡–Ǥƒƒ‰‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ ‹•”‡•’‘•‹„Ž‡ˆ‘”‡•–ƒ„Ž‹•Š‹‰ ƒ’‹–ƒŽƒƒ‰‡‡–’”‘ ‡†—”‡•ƒ†ˆ‘”‹’Ž‡‡–‹‰ƒ†‘‹–‘”‹‰‹–• ƒ’‹–ƒŽ ’Žƒ•ǤŠ‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘”‡˜‹‡™•ƒ†ƒ’’”‘˜‡• ƒ’‹–ƒŽ–”ƒ•ƒ –‹‘••— Šƒ•–Š‡‹••—ƒ ‡ǡ ”‡†‡’–‹‘ ƒ† ”‡’—” Šƒ•‡ ‘ˆ ‘‘ •Šƒ”‡•ǡ ’‡”’‡–—ƒŽ ’”‡ˆ‡””‡† •Šƒ”‡• ƒ† †‡„‡–—”‡•Ǥ Š‡ „‘ƒ”†• ‘ˆ †‹”‡ –‘”•‘ˆ–Š‡’—„Ž‹ •—„•‹†‹ƒ”‹‡•ǡƒ•™‡ŽŽƒ•–Š‘•‡‘ˆƒ”‰‡•ƒƒ† ǡƒ”‡”‡•’‘•‹„Ž‡ˆ‘”–Š‡‹””‡•’‡ –‹˜‡ ‘’ƒ›ǯ• ƒ’‹–ƒŽƒƒ‰‡‡–Ǥ Š‡‘”’‘”ƒ–‹‘Š‘Ž†•’‘•‹–‹‘•‹Ž‘‰Ǧ–‡”‹˜‡•–‡–•ƒ•™‡ŽŽƒ• ƒ•Šƒ†ˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ˆ‘”Ž‹“—‹†‹–› ’—”’‘•‡•Ǥ‹–Š–Š‡‡š ‡’–‹‘‘ˆ†‡„‡–—”‡•ƒ†‘–Š‡”†‡„–‹•–”—‡–•ǡ–Š‡‘”’‘”ƒ–‹‘ǯ• ƒ’‹–ƒŽ‹•’‡”ƒ‡–ǡ ƒ– Š‹‰–Š‡Ž‘‰Ǧ–‡”ƒ–—”‡‘ˆ‹–•‹˜‡•–‡–•ǤŠ‡ ƒ’‹–ƒŽ•–”— –—”‡‘ˆ–Š‡‘”’‘”ƒ–‹‘ ‘•‹•–•‘ˆ’‡”’‡–—ƒŽ ’”‡ˆ‡””‡† •Šƒ”‡•ǡ †‡„‡–—”‡•ǡ ‘‘ •Šƒ”‡Š‘Ž†‡”•ǯ ‡“—‹–›ǡ ƒ† ‘Ǧ ‘–”‘ŽŽ‹‰ ‹–‡”‡•–•Ǥ Š‡ ‘”’‘”ƒ–‹‘ ˜‹‡™•’‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡•ƒ•ƒ’‡”ƒ‡–ƒ† ‘•–Ǧ‡ˆˆ‡ –‹˜‡•‘—” ‡‘ˆ ƒ’‹–ƒŽ ‘•‹•–‡–™‹–Š‹–••–”ƒ–‡‰› ‘ˆƒ‹–ƒ‹‹‰ƒ”‡Žƒ–‹˜‡Ž›Ž‘™Ž‡˜‡Ž‘ˆ†‡„–Ǥ 

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 19

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B19B19 116-05-126-05-12 2:012:01 PMPM      

–Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡ǡ ‘•‘Ž‹†ƒ–‡† ƒ’‹–ƒŽ‹œƒ–‹‘”‡ˆŽ‡ –•–Š‡ ‘•‘Ž‹†ƒ–‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ••—„•‹†‹ƒ”‹‡•ǤŠ‡ ‘”’‘”ƒ–‹‘ǯ• ‘•‘Ž‹†ƒ–‡† ƒ’‹–ƒŽ‹œƒ–‹‘‹ Ž—†‡•–Š‡†‡„‡–—”‡•ƒ†‘–Š‡”†‡„–‹•–”—‡–•‘ˆ‹–• ‘•‘Ž‹†ƒ–‡† •—„•‹†‹ƒ”‹‡•Ǥ ‡„‡–—”‡• ƒ† ‘–Š‡” †‡„– ‹•–”—‡–• ‹••—‡† „› ‹ˆ‡ ‘ ƒ†  ƒ”‡ ‘Ǧ”‡ ‘—”•‡ –‘ –Š‡ ‘”’‘”ƒ–‹‘Ǥ ‡”’‡–—ƒŽ ’”‡ˆ‡””‡† •Šƒ”‡• ƒ† –‘–ƒŽ ‡“—‹–› ƒ ‘—–‡† ˆ‘” ͺʹΨ ‘ˆ ‘•‘Ž‹†ƒ–‡† ƒ’‹–ƒŽ‹œƒ–‹‘ ƒ– ƒ” Š͵ͳǡʹͲͳ͸Ǥ March31, ‡ ‡„‡”͵ͳǡ  2016 ʹͲͳͷ    Debenturesandotherdebtinstruments  ‘™‡” ‹ƒ ‹ƒŽ 250 ʹͷͲ ‹ˆ‡ ‘ 5,284 ͷǡ͵ͻͷ  1,325 ͳǡ͵ʹͷ ‘•‘Ž‹†ƒ–‹‰ƒ†Œ—•–‡–• (43) ȋͶ͵Ȍ  6,816 ͸ǡͻʹ͹ Preferredshares  ‘™‡” ‹ƒ ‹ƒŽ 2,580 ʹǡͷͺͲ 2,514

PART B PART B ‹ˆ‡ ‘  ʹǡͷͳͶ  150 ͳͷͲ  5,244 ͷǡʹͶͶ Equity 

POWER FINANCIAL CORPORATION ‘‘•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–› 16,288 ͳ͸ǡͻ͹Ͳ ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•ȏͳȐ 9,928 ͳͲǡͳͺͺ  26,216 ʹ͹ǡͳͷͺ  38,276 ͵ͻǡ͵ʹͻ ȏͳȐ ‡’”‡•‡–•–Š‡‘Ǧ ‘–”‘ŽŽ‹‰‡“—‹–›‹–‡”‡•–•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ••—„•‹†‹ƒ”‹‡•‡š Ž—†‹‰‹ˆ‡ ‘ƒ† ǯ•’”‡ˆ‡””‡†•Šƒ”‡•ǡ™Š‹ Šƒ”‡•Š‘™ ‹–Š‹•–ƒ„Ž‡ƒ•’”‡ˆ‡””‡†•Šƒ”‡•Ǥ Š‡ ‘”’‘”ƒ–‹‘ ‹• ‘– •—„Œ‡ – –‘ ‡š–‡”ƒŽŽ› ‹’‘•‡† ”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ ”‡“—‹”‡‡–•Ǣ Š‘™‡˜‡”ǡ ‹ˆ‡ ‘ ƒ† ‡”–ƒ‹‘ˆ‹–•ƒ‹•—„•‹†‹ƒ”‹‡•ƒ† ǯ••—„•‹†‹ƒ”‹‡•ƒ”‡•—„Œ‡ ––‘”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•Ǥƒ”–•ƒ† ‘ˆ–Š‹•Ƭˆ—”–Š‡”†‡• ”‹„‡–Š‡ ƒ’‹–ƒŽƒƒ‰‡‡–ƒ –‹˜‹–‹‡•‘ˆ‹ˆ‡ ‘ƒ† ǡ”‡•’‡ –‹˜‡Ž›Ǥ

RATINGS Š‡ —””‡– ”ƒ–‹‰ „› –ƒ†ƒ”† Ƭ ‘‘”ǯ• ȋƬȌ ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ǯ• †‡„‡–—”‡• ‹• DzΪdz ™‹–Š ƒ •–ƒ„Ž‡ ‘—–Ž‘‘Ǥ ‘‹‹‘ ‘† ƒ–‹‰ ‡”˜‹ ‡ǯ• ȋȌ —””‡– ”ƒ–‹‰ ‘ –Š‡ ‘”’‘”ƒ–‹‘ǯ•†‡„‡–—”‡•‹•Dzȋ ‹‰ŠȌdz™‹–Šƒ •–ƒ„Ž‡”ƒ–‹‰–”‡†Ǥ ”‡†‹– ”ƒ–‹‰• ƒ”‡ ‹–‡†‡† –‘ ’”‘˜‹†‡ ‹˜‡•–‘”• ™‹–Š ƒ ‹†‡’‡†‡– ‡ƒ•—”‡ ‘ˆ –Š‡ ”‡†‹– “—ƒŽ‹–› ‘ˆ –Š‡ •‡ —”‹–‹‡•‘ˆƒ ‘”’‘”ƒ–‹‘ƒ†ƒ”‡‹†‹ ƒ–‘”•‘ˆ–Š‡Ž‹‡Ž‹Š‘‘†‘ˆ’ƒ›‡–ƒ†–Š‡ ƒ’ƒ ‹–›‘ˆƒ ‘”’‘”ƒ–‹‘–‘ ‡‡–‹–•‘„Ž‹‰ƒ–‹‘•‹ƒ ‘”†ƒ ‡™‹–Š–Š‡–‡”•‘ˆ‡ƒ Š‘„Ž‹‰ƒ–‹‘Ǥ‡• ”‹’–‹‘•‘ˆ–Š‡”ƒ–‹‰ ƒ–‡‰‘”‹‡•ˆ‘”‡ƒ Š ‘ˆ–Š‡ƒ‰‡ ‹‡••‡–ˆ‘”–Š„‡Ž‘™Šƒ˜‡„‡‡‘„–ƒ‹‡†ˆ”‘–Š‡”‡•’‡ –‹˜‡”ƒ–‹‰ƒ‰‡ ‹‡•ǯ™‡„•‹–‡•ǤŠ‡•‡”ƒ–‹‰• ƒ”‡‘–ƒ”‡ ‘‡†ƒ–‹‘–‘„—›ǡ•‡ŽŽ‘”Š‘Ž†–Š‡•‡ —”‹–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ††‘‘–ƒ††”‡••ƒ”‡–’”‹ ‡ ‘”‘–Š‡”ˆƒ –‘”•–Šƒ–‹‰Š–†‡–‡”‹‡•—‹–ƒ„‹Ž‹–›‘ˆƒ•’‡ ‹ˆ‹ •‡ —”‹–›ˆ‘”ƒ’ƒ”–‹ —Žƒ”‹˜‡•–‘”ǤŠ‡”ƒ–‹‰•ƒŽ•‘ ƒ›‘–”‡ˆŽ‡ ––Š‡’‘–‡–‹ƒŽ‹’ƒ –‘ˆƒŽŽ”‹••‘–Š‡˜ƒŽ—‡‘ˆ •‡ —”‹–‹‡• ƒ† ƒ”‡ •—„Œ‡ – –‘ ”‡˜‹•‹‘ ‘” ™‹–Š†”ƒ™ƒŽƒ–ƒ›–‹‡„›–Š‡”ƒ–‹‰‘”‰ƒ‹œƒ–‹‘Ǥ Š‡DzΪdz”ƒ–‹‰ƒ••‹‰‡†–‘–Š‡‘”’‘”ƒ–‹‘ǯ•†‡„‡–—”‡•„›Ƭ‹•–Š‡ˆ‹ˆ–ŠŠ‹‰Š‡•–‘ˆ–Š‡ʹʹ”ƒ–‹‰•—•‡†ˆ‘” Ž‘‰Ǧ–‡”†‡„–ǤŽ‘‰Ǧ–‡”†‡„‡–—”‡”ƒ–‡†DzΪdz‹••‘‡™Šƒ–‘”‡•—• ‡’–‹„Ž‡–‘–Š‡ƒ†˜‡”•‡‡ˆˆ‡ –•‘ˆ Šƒ‰‡• ‹ ‹” —•–ƒ ‡• ƒ† ‡ ‘‘‹  ‘†‹–‹‘• –Šƒ ‘„Ž‹‰ƒ–‹‘• ‹ Š‹‰Š‡”Ǧ”ƒ–‡† ƒ–‡‰‘”‹‡•ǡ Š‘™‡˜‡”ǡ –Š‡ ‘„Ž‹‰‘”ǯ• ƒ’ƒ ‹–›–‘‡‡–‹–•ˆ‹ƒ ‹ƒŽ ‘‹–‡–‘–Š‡‘„Ž‹‰ƒ–‹‘‹••–‹ŽŽ•–”‘‰Ǥ Š‡Dzȋ ‹‰ŠȌdz”ƒ–‹‰ƒ••‹‰‡†–‘–Š‡‘”’‘”ƒ–‹‘ǯ•†‡„‡–—”‡•„›‹•–Š‡ˆ‹ˆ–ŠŠ‹‰Š‡•–‘ˆ–Š‡ʹ͸”ƒ–‹‰•—•‡† ˆ‘” Ž‘‰Ǧ–‡” †‡„–Ǥ  Ž‘‰Ǧ–‡” †‡„‡–—”‡ ”ƒ–‡† Dz ȋ ‹‰ŠȌdz ‹’Ž‹‡• –Šƒ– –Š‡ ƒ’ƒ ‹–› ˆ‘” –Š‡ ”‡’ƒ›‡– ‹• •—„•–ƒ–‹ƒŽǡ„—–‘ˆŽ‡••‡” ”‡†‹–“—ƒŽ‹–›–Šƒǡƒ†ƒ›„‡˜—Ž‡”ƒ„Ž‡ –‘ ˆ—–—”‡ ‡˜‡–•ǡ ƒŽ–Š‘—‰Š “—ƒŽ‹ˆ›‹‰ ‡‰ƒ–‹˜‡ˆƒ –‘”•ƒ”‡ ‘•‹†‡”‡†ƒƒ‰‡ƒ„Ž‡Ǥ Š‡ ”‡†‹–”ƒ–‹‰•‘ˆ–Š‡‘”’‘”ƒ–‹‘”‡ƒ‹— Šƒ‰‡†ˆ”‘–Š‘•‡†‡• ”‹„‡†‹–Š‡ʹͲͳͷ—ƒŽƬǤ

B 20 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B20B20 116-05-126-05-12 2:012:01 PMPM      

RISKMANAGEMENT ‘™‡” ‹ƒ ‹ƒŽ‹•ƒŠ‘Ž†‹‰ ‘’ƒ›–Šƒ–Š‘Ž†••—„•–ƒ–‹ƒŽ‹–‡”‡•–•‹–Š‡ˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡••‡ –‘”–Š”‘—‰Š‹–• ‘–”‘ŽŽ‹‰‹–‡”‡•–‹‡ƒ Š‘ˆ‹ˆ‡ ‘ƒ† Ǥ•ƒ”‡•—Ž–ǡ–Š‡‘”’‘”ƒ–‹‘„‡ƒ”•–Š‡”‹••ƒ••‘ ‹ƒ–‡†™‹–Š„‡‹‰ƒ •‹‰‹ˆ‹ ƒ–•Šƒ”‡Š‘Ž†‡”‘ˆ–Š‡•‡‘’‡”ƒ–‹‰ ‘’ƒ‹‡•ǤŠ‡”‡•’‡ –‹˜‡„‘ƒ”†•‘ˆ†‹”‡ –‘”•‘ˆ‹ˆ‡ ‘ǡ ǡƒ”‰‡•ƒ ƒ† ƒ”‡”‡•’‘•‹„Ž‡ˆ‘”–Š‡”‹•‘˜‡”•‹‰Š–ˆ— –‹‘ƒ––Š‡‹””‡•’‡ –‹˜‡ ‘’ƒ‹‡•ǤŠ‡”‹• ‘‹––‡‡‘ˆ–Š‡ „‘ƒ”† ‘ˆ †‹”‡ –‘”• ‘ˆ ‹ˆ‡ ‘ ‹• ”‡•’‘•‹„Ž‡ ˆ‘” ‹–• ”‹• ‘˜‡”•‹‰Š–ǡƒ†–Š‡„‘ƒ”†‘ˆ†‹”‡ –‘”•‘ˆ ’”‘˜‹†‡• ‘˜‡”•‹‰Š–ƒ† ƒ””‹‡•‘—–‹–•”‹•ƒƒ‰‡‡–ƒ†ƒ–‡–Š”‘—‰Š˜ƒ”‹‘—• ‘‹––‡‡•Ǥ ‡”–ƒ‹ ‘ˆˆ‹ ‡”• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ ƒ”‡ ‡„‡”• ‘ˆ –Š‡•‡ „‘ƒ”†• ƒ† ‘‹––‡‡• ‘ˆ –Š‡•‡„‘ƒ”†•ƒ†ǡ ‘•‡“—‡–Ž›ǡ‹–Š‡‹””‘Ž‡ƒ•

†‹”‡ –‘”•ǡ–Š‡›’ƒ”–‹ ‹’ƒ–‡‹–Š‡”‹•‘˜‡”•‹‰Š–ˆ— –‹‘ƒ––Š‡‘’‡”ƒ–‹‰ ‘’ƒ‹‡•Ǥƒ”–•ƒ†‘ˆ–Š‹•Ƭ CORPORATION FINANCIAL POWER ˆ—”–Š‡”†‡• ”‹„‡”‹••”‡Žƒ–‡†–‘‹ˆ‡ ‘ƒ† ǡ”‡•’‡ –‹˜‡Ž›Ǥƒ”‰‡•ƒǡƒŠ‘Ž†‹‰ ‘’ƒ›ǡ‹•ƒŽ•‘•—„Œ‡ ––‘”‹•• †—‡–‘–Š‡ƒ–—”‡‘ˆ‹–•ƒ –‹˜‹–‹‡•ƒ†ƒŽ•‘–Š‘•‡‘ˆ‹–•†‹”‡ –•—„•‹†‹ƒ”› ǤŠ‡•‡”‹••”‡Žƒ–‡–‘ ”‡†‹–ǡŽ‹“—‹†‹–› ƒ† ƒ”‡– ”‹• ƒ• †‡• ”‹„‡† ‹ ƒ”‰‡•ƒǯ• ‘•‘Ž‹†ƒ–‡† ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ˆ‘” –Š‡ ›‡ƒ” ‡†‡† ‡ ‡„‡” ͵ͳǡ PART BPART ʹͲͳͷǤ Š‡‘”’‘”ƒ–‹‘„‡Ž‹‡˜‡•–Šƒ–ƒ’”—†‡–ƒ’’”‘ƒ Š–‘”‹•‹•ƒ Š‹‡˜‡†–Š”‘—‰Šƒ‰‘˜‡”ƒ ‡‘†‡Ž–Šƒ–ˆ‘ —•‡•‘ –Š‡ƒ –‹˜‡‘˜‡”•‹‰Š–‘ˆ‹–•‹˜‡•–‡–•ǤŠ‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘Šƒ•‘˜‡”ƒŽŽ”‡•’‘•‹„‹Ž‹–›ˆ‘” ‘’‡”ƒ–‹‘ƒŽ”‹••ƒ••‘ ‹ƒ–‡†™‹–Šˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ†ˆ‘”‘‹–‘”‹‰ƒƒ‰‡‡–ǯ•‹’Ž‡‡–ƒ–‹‘ƒ† ƒ‹–‡ƒ ‡ ‘ˆ ’‘Ž‹ ‹‡• ƒ† ‘–”‘Ž• –‘ ƒƒ‰‡ ”‹•• ƒ••‘ ‹ƒ–‡† ™‹–Š –Š‡ ‘”’‘”ƒ–‹‘ǯ• „—•‹‡•• ƒ• ƒ Š‘Ž†‹‰ ‘’ƒ›Ǥ Š‡‘ƒ”†‘ˆ‹”‡ –‘”•’”‘˜‹†‡•‘˜‡”•‹‰Š–ƒ† ƒ””‹‡•‘—–‹–•”‹•ƒƒ‰‡‡–ƒ†ƒ–‡’”‹ƒ”‹Ž›–Š”‘—‰Š–Š‡ ˆ‘ŽŽ‘™‹‰ ‘‹––‡‡•ǣ  Š‡—†‹–‘‹––‡‡ƒ††”‡••‡•”‹••”‡Žƒ–‡†–‘ˆ‹ƒ ‹ƒŽ”‡’‘”–‹‰Ǥ  Š‡‘’‡•ƒ–‹‘‘‹––‡‡ ‘•‹†‡”•”‹••ƒ••‘ ‹ƒ–‡†™‹–Š–Š‡‘”’‘”ƒ–‹‘ǯ• ‘’‡•ƒ–‹‘’‘Ž‹ ‹‡•ƒ† ’”ƒ –‹ ‡•Ǥ  Š‡ ‘˜‡”ƒ ‡ƒ†‘‹ƒ–‹‰‘‹––‡‡‘˜‡”•‡‡•–Š‡‘”’‘”ƒ–‹‘ǯ•ƒ’’”‘ƒ Š–‘ƒ’’”‘’”‹ƒ–‡Ž›ƒ††”‡•• ’‘–‡–‹ƒŽ”‹••”‡Žƒ–‡†–‘‰‘˜‡”ƒ ‡ƒ––‡”•Ǥ  Š‡ ‡Žƒ–‡† ƒ”–› ƒ† ‘†— – ‡˜‹‡™ ‘‹––‡‡ ‘˜‡”•‡‡• –Š‡ ”‹•• ”‡Žƒ–‡† –‘ –”ƒ•ƒ –‹‘• ™‹–Š ”‡Žƒ–‡† ’ƒ”–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ Š‡”‡ƒ”‡ ‡”–ƒ‹”‹••‹Š‡”‡–‹ƒ‹˜‡•–‡–‹–Š‡•‡ —”‹–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ†‹–Š‡ƒ –‹˜‹–‹‡•‘ˆ–Š‡ ‘”’‘”ƒ–‹‘ǡ‹ Ž—†‹‰–Š‡ˆ‘ŽŽ‘™‹‰”‹••ƒ†‘–Š‡”•†‹• —••‡†‡Ž•‡™Š‡”‡‹–Š‹•Ƭǡ™Š‹ Š‹˜‡•–‘”••Š‘—Ž† ƒ”‡ˆ—ŽŽ› ‘•‹†‡”„‡ˆ‘”‡‹˜‡•–‹‰‹•‡ —”‹–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǤŠ‡ˆ‘ŽŽ‘™‹‰‹•ƒ”‡˜‹‡™‘ˆ ‡”–ƒ‹”‹••–Šƒ– ‘—Ž†‹’ƒ ––Š‡ˆ‹ƒ ‹ƒŽ ‘†‹–‹‘ƒ†ˆ‹ƒ ‹ƒŽ’‡”ˆ‘”ƒ ‡ǡƒ†–Š‡˜ƒŽ—‡‘ˆ–Š‡‡“—‹–›‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ Š‹•†‡• ”‹’–‹‘‘ˆ”‹••†‘‡•‘–‹ Ž—†‡ƒŽŽ’‘••‹„Ž‡”‹••ǡƒ†–Š‡”‡ƒ›„‡‘–Š‡””‹••‘ˆ™Š‹ Š–Š‡‘”’‘”ƒ–‹‘ ‹•‘– —””‡–Ž›ƒ™ƒ”‡Ǥ

OWNERSHIPOFCOMMONANDPREFERREDSHARES Š‡•Šƒ”‡’”‹ ‡‘ˆ‘™‡” ‹ƒ ‹ƒŽƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ›„‡˜‘Žƒ–‹Ž‡ƒ†•—„Œ‡ ––‘ˆŽ— –—ƒ–‹‘•‹”‡•’‘•‡–‘ —‡”‘—•ˆƒ –‘”•„‡›‘†‘™‡” ‹ƒ ‹ƒŽǯ•ƒ†•— Š•—„•‹†‹ƒ”‹‡•ǯ ‘–”‘ŽǤ ‘‘‹  ‘†‹–‹‘•ƒ›ƒ†˜‡”•‡Ž› ƒˆˆ‡ –‘™‡” ‹ƒ ‹ƒŽƒ†‹–••—„•‹†‹ƒ”‹‡•ǡ‹ Ž—†‹‰ˆŽ— –—ƒ–‹‘•‹ˆ‘”‡‹‰‡š Šƒ‰‡ǡ‹ˆŽƒ–‹‘ƒ†‹–‡”‡•–”ƒ–‡•ǡ ƒ•™‡ŽŽƒ•‘‡–ƒ”›’‘Ž‹ ‹‡•ǡ„—•‹‡••‹˜‡•–‡–ƒ†–Š‡Š‡ƒŽ–Š‘ˆ ƒ’‹–ƒŽƒ”‡–•‹ƒƒ†ƒǡ–Š‡‹–‡†–ƒ–‡• ƒ†—”‘’‡Ǥ ”‡ ‡–›‡ƒ”•ǡˆ‹ƒ ‹ƒŽƒ”‡–•Šƒ˜‡‡š’‡”‹‡ ‡†•‹‰‹ˆ‹ ƒ–’”‹ ‡ƒ†˜‘Ž—‡ˆŽ— –—ƒ–‹‘•–Šƒ– Šƒ˜‡ƒˆˆ‡ –‡†–Š‡ƒ”‡–’”‹ ‡•‘ˆ‡“—‹–›•‡ —”‹–‹‡•Š‡Ž†„›–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ†–Šƒ–Šƒ˜‡ ‘ˆ–‡ „‡‡ —”‡Žƒ–‡† –‘ –Š‡ ‘’‡”ƒ–‹‰ ’‡”ˆ‘”ƒ ‡ǡ —†‡”Ž›‹‰ ƒ••‡– ˜ƒŽ—‡• ‘” ’”‘•’‡ –• ‘ˆ •— Š ‘’ƒ‹‡•Ǥ Š‡•‡ˆƒ –‘”•ƒ› ƒ—•‡†‡ ”‡ƒ•‡•‹ƒ••‡–˜ƒŽ—‡•–Šƒ–ƒ”‡†‡‡‡†–‘„‡•‹‰‹ˆ‹ ƒ–‘”’”‘Ž‘‰‡†ǡ™Š‹ Šƒ› ”‡•—Ž– ‹ ‹’ƒ‹”‡– Šƒ”‰‡•Ǥ  ’‡”‹‘†• ‘ˆ ‹ ”‡ƒ•‡† Ž‡˜‡Ž• ‘ˆ ˜‘Žƒ–‹Ž‹–› ƒ† ”‡Žƒ–‡† ƒ”‡– –—”‘‹Žǡ ‘™‡” ‹ƒ ‹ƒŽ •—„•‹†‹ƒ”‹‡•ǯ ‘’‡”ƒ–‹‘• ‘—Ž† „‡ ƒ†˜‡”•‡Ž› ‹’ƒ –‡† ƒ† –Š‡ –”ƒ†‹‰ ’”‹ ‡ ‘ˆ ‘™‡” ‹ƒ ‹ƒŽǯ• •‡ —”‹–‹‡•ƒ›„‡ƒ†˜‡”•‡Ž›ƒˆˆ‡ –‡†Ǥ

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 21

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B21B21 116-05-126-05-12 2:012:01 PMPM      

LAWS,RULESANDREGULATIONS Š‡”‡ƒ”‡ƒ›Žƒ™•ǡ‰‘˜‡”‡–ƒŽ”—Ž‡•ƒ†”‡‰—Žƒ–‹‘•ƒ†•–‘ ‡š Šƒ‰‡”—Ž‡•–Šƒ–ƒ’’Ž›–‘–Š‡‘”’‘”ƒ–‹‘Ǥ Šƒ‰‡•‹–Š‡•‡Žƒ™•ǡ”—Ž‡•ƒ†”‡‰—Žƒ–‹‘•ǡ‘”–Š‡‹”‹–‡”’”‡–ƒ–‹‘„›‰‘˜‡”‡–ƒŽƒ‰‡ ‹‡•‘”–Š‡ ‘—”–•ǡ ‘—Ž†Šƒ˜‡ƒ•‹‰‹ˆ‹ ƒ–‡ˆˆ‡ –‘–Š‡„—•‹‡••ƒ†–Š‡ˆ‹ƒ ‹ƒŽ ‘†‹–‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘ǤŠ‡‘”’‘”ƒ–‹‘ǡ‹ ƒ††‹–‹‘–‘ ‘’Ž›‹‰™‹–Š–Š‡•‡Žƒ™•ǡ”—Ž‡•ƒ†”‡‰—Žƒ–‹‘•ǡ—•–ƒŽ•‘‘‹–‘”–Š‡ Ž‘•‡Ž›•‘–Šƒ– Šƒ‰‡• –Š‡”‡‹ƒ”‡–ƒ‡‹–‘ƒ ‘—–‹–Š‡ƒƒ‰‡‡–‘ˆ‹–•ƒ –‹˜‹–‹‡•Ǥ

FINANCIALINSTRUMENTSRISK ‘™‡” ‹ƒ ‹ƒŽŠƒ•‡•–ƒ„Ž‹•Š‡†’‘Ž‹ ‹‡•ǡ‰—‹†‡Ž‹‡•ƒ†’”‘ ‡†—”‡•†‡•‹‰‡†–‘‹†‡–‹ˆ›ǡ‡ƒ•—”‡ǡ‘‹–‘”ƒ† ‹–‹‰ƒ–‡ƒ–‡”‹ƒŽ”‹••ƒ••‘ ‹ƒ–‡†™‹–Šˆ‹ƒ ‹ƒŽ‹•–”—‡–•ǤŠ‡‡›”‹••”‡Žƒ–‡†–‘ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ”‡ Ž‹“—‹†‹–›”‹•ǡ ”‡†‹–”‹•ƒ†ƒ”‡–”‹•Ǥ  ‹“—‹†‹–›”‹•‹•–Š‡”‹•–Šƒ––Š‡‘”’‘”ƒ–‹‘™‹ŽŽ‘–„‡ƒ„Ž‡–‘‡‡–ƒŽŽ ƒ•Š‘—–ˆŽ‘™‘„Ž‹‰ƒ–‹‘•ƒ•–Š‡› ‘‡†—‡Ǥ  ”‡†‹–”‹•‹•–Š‡’‘–‡–‹ƒŽˆ‘”ˆ‹ƒ ‹ƒŽŽ‘••–‘–Š‡‘”’‘”ƒ–‹‘‹ˆƒ ‘—–‡”’ƒ”–›‹ƒ–”ƒ•ƒ –‹‘ˆƒ‹Ž•–‘‡‡–

PART B PART B ‹–•‘„Ž‹‰ƒ–‹‘•Ǥ  ƒ”‡–”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘”ˆ—–—”‡ ƒ•ŠˆŽ‘™•‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ƒ•ƒ ”‡•—Ž–‘ˆ Šƒ‰‡•‹ƒ”‡–ˆƒ –‘”•Ǥƒ”‡–ˆƒ –‘”•‹ Ž—†‡–Š”‡‡–›’‡•‘ˆ”‹••ǣ —””‡ ›”‹•ǡ‹–‡”‡•–”ƒ–‡

POWER FINANCIAL CORPORATION ”‹•ƒ†‡“—‹–›’”‹ ‡”‹•Ǥ • —””‡ ›”‹•”‡Žƒ–‡•–‘–Š‡‘”’‘”ƒ–‹‘‘’‡”ƒ–‹‰‹†‹ˆˆ‡”‡– —””‡ ‹‡•ƒ† ‘˜‡”–‹‰‘Ǧƒƒ†‹ƒ ‡ƒ”‹‰•ƒ–†‹ˆˆ‡”‡–’‘‹–•‹–‹‡ƒ–†‹ˆˆ‡”‡–ˆ‘”‡‹‰‡š Šƒ‰‡Ž‡˜‡Ž•™Š‡ƒ†˜‡”•‡ Šƒ‰‡•‹ˆ‘”‡‹‰ —””‡ ›‡š Šƒ‰‡”ƒ–‡•‘ —”Ǥ • –‡”‡•–”ƒ–‡”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘ˆˆ—–—”‡ ƒ•ŠˆŽ‘™•‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ „‡ ƒ—•‡‘ˆ Šƒ‰‡•‹–Š‡ƒ”‡–‹–‡”‡•–”ƒ–‡•Ǥ • “—‹–›’”‹ ‡”‹•‹•–Š‡— ‡”–ƒ‹–›ƒ••‘ ‹ƒ–‡†™‹–Š–Š‡˜ƒŽ—ƒ–‹‘‘ˆƒ••‡–•ƒ”‹•‹‰ˆ”‘ Šƒ‰‡•‹‡“—‹–› ƒ”‡–•Ǥ ‘™‡” ‹ƒ ‹ƒŽǯ•ƒƒ‰‡‡–‘ˆˆ‹ƒ ‹ƒŽ‹•–”—‡–•”‹•Šƒ•‘– Šƒ‰‡†ƒ–‡”‹ƒŽŽ›ˆ”‘™Šƒ–‹•†‡• ”‹„‡†‹ –Š‡ ʹͲͳͷ —ƒŽ ƬǤ ‘” ƒ ˆ—”–Š‡” †‹• —••‹‘ ‘ˆ ‘™‡” ‹ƒ ‹ƒŽǯ• ”‹• ƒƒ‰‡‡–ǡ ’Ž‡ƒ•‡ ”‡ˆ‡” –‘ –Š‡ –‡”‹ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ –ƒ–‡‡–• ƒ† –‘ ‘–‡ ʹͳ –‘ –Š‡ ‘”’‘”ƒ–‹‘ǯ• ʹͲͳͷ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ –ƒ–‡‡–•Ǥ ƒ”–•  ƒ†  ‘ˆ –Š‹• Ƭ †‡• ”‹„‡ ”‡•’‡ –‹˜‡Ž› ‹ˆ‡ ‘ǯ•ƒ† ǯ•ƒƒ‰‡‡–‘ˆˆ‹ƒ ‹ƒŽ ‹•–”—‡–•”‹•Ǥ

FINANCIALINSTRUMENTS

DERIVATIVEFINANCIALINSTRUMENTS –Š‡ ‘—”•‡‘ˆ–Š‡‹”ƒ –‹˜‹–‹‡•ǡ–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•—•‡†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ǤŠ‡ —•‹‰•— Š†‡”‹˜ƒ–‹˜‡•ǡ–Š‡›‘Ž›ƒ –ƒ•Ž‹‹–‡†‡†Ǧ—•‡”•ƒ†‘–ƒ•ƒ”‡–Ǧƒ‡”•‹•— Š†‡”‹˜ƒ–‹˜‡•Ǥ Š‡—•‡‘ˆ†‡”‹˜ƒ–‹˜‡•‹•‘‹–‘”‡†ƒ†”‡˜‹‡™‡†‘ƒ”‡‰—Žƒ”„ƒ•‹•„›•‡‹‘”ƒƒ‰‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ ƒ† „› •‡‹‘” ƒƒ‰‡‡– ‘ˆ ‹–• •—„•‹†‹ƒ”‹‡•Ǥ Š‡ ‘”’‘”ƒ–‹‘ ƒ†‹–••—„•‹†‹ƒ”‹‡•Šƒ˜‡‡ƒ Š‡•–ƒ„Ž‹•Š‡† ‘’‡”ƒ–‹‰ ’‘Ž‹ ‹‡•ǡ ‰—‹†‡Ž‹‡• ƒ† ’”‘ ‡†—”‡• ”‡Žƒ–‹‰ –‘ –Š‡ —•‡ ‘ˆ †‡”‹˜ƒ–‹˜‡ ˆ‹ƒ ‹ƒŽ ‹•–”—‡–•ǡ ™Š‹ Š ‹ ’ƒ”–‹ —Žƒ”ˆ‘ —•‘ǣ  ’”‘Š‹„‹–‹‰–Š‡—•‡‘ˆ†‡”‹˜ƒ–‹˜‡‹•–”—‡–•ˆ‘”•’‡ —Žƒ–‹˜‡’—”’‘•‡•Ǣ  †‘ —‡–‹‰–”ƒ•ƒ –‹‘•ƒ†‡•—”‹‰–Š‡‹” ‘•‹•–‡ ›™‹–Š”‹•ƒƒ‰‡‡–’‘Ž‹ ‹‡•Ǣ  †‡‘•–”ƒ–‹‰–Š‡‡ˆˆ‡ –‹˜‡‡••‘ˆ–Š‡Š‡†‰‹‰”‡Žƒ–‹‘•Š‹’•Ǣƒ†  ‘‹–‘”‹‰–Š‡Š‡†‰‹‰”‡Žƒ–‹‘•Š‹’•Ǥ 

B 22 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B22B22 116-05-126-05-12 2:012:01 PMPM      

Š‡”‡™‡”‡‘ƒŒ‘” Šƒ‰‡•–‘–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ǯ’‘Ž‹ ‹‡•ƒ†’”‘ ‡†—”‡•™‹–Š”‡•’‡ ––‘–Š‡ —•‡ ‘ˆ †‡”‹˜ƒ–‹˜‡ ‹•–”—‡–• ‹ –Š‡ ˆ‹”•– “—ƒ”–‡” ‘ˆ ʹͲͳ͸Ǥ Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡’”‘˜‹†‡•ƒ•—ƒ”›‘ˆ–Š‡ ‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ǯ†‡”‹˜ƒ–‹˜‡•’‘”–ˆ‘Ž‹‘ǣ

March31,2016 ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒš‹— ‘–ƒŽ ƒš‹— ‘–ƒŽ ‘–‹‘ƒŽ ”‡†‹–”‹• ˆƒ‹”˜ƒŽ—‡ ‘–‹‘ƒŽ ”‡†‹–”‹• ˆƒ‹”˜ƒŽ—‡ ‘™‡” ‹ƒ ‹ƒŽ  90 7 7 ͳͳͳͳ ‹ˆ‡ ‘  19,106 602 (1,413) ͳ͸ǡ͹ͳʹ Ͷ͸ͳ ȋʹǡͳ͸͵Ȍ   3,214 66 8 ʹǡ͹Ͳʹ ͷͺ Ϋ

  22,410 675 (1,398) ͳͻǡͶʹͷ ͷʹͲ ȋʹǡͳ͸ʹȌ CORPORATION FINANCIAL POWER

—”‹‰ –Š‡ –Š”‡‡Ǧ‘–Š ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ –Š‡”‡ ™ƒ• ƒ ‹ ”‡ƒ•‡ ‘ˆ ̈́͵ǤͲ „‹ŽŽ‹‘ ‹ –Š‡ ‘–‹‘ƒŽ ƒ‘—–‘—–•–ƒ†‹‰ƒ†ƒ‹ ”‡ƒ•‡‹–Š‡ƒš‹— ”‡†‹–”‹•ȋ–Š‹•”‡’”‡•‡–•–Š‡ƒ”‡–˜ƒŽ—‡‘ˆ‹•–”—‡–• PART BPART ‹ ƒ ‰ƒ‹ ’‘•‹–‹‘Ȍ ’”‹ƒ”‹Ž› †—‡ –‘ ƒ ‹ ”‡ƒ•‡ ‘ˆ ̈́ʹǤʹ „‹ŽŽ‹‘ ‹ ˆ‘”™ƒ”† •‡––Ž‹‰ –‘Ǧ„‡Ǧƒ‘— ‡† •‡ —”‹–› –”ƒ•ƒ –‹‘•ƒ–‹ˆ‡ ‘ƒ†”‡‰—Žƒ”Š‡†‰‹‰ƒ –‹˜‹–‹‡•Ǥ ƒ”–•ƒ†‘ˆ–Š‹•Ƭ’”‘˜‹†‡‹ˆ‘”ƒ–‹‘‘–Š‡–›’‡•‘ˆ†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•—•‡†„›‹ˆ‡ ‘ ƒ† ǡ”‡•’‡ –‹˜‡Ž›Ǥ

OFF-BALANCESHEETARRANGEMENTS

GUARANTEES –Š‡‘”ƒŽ ‘—”•‡‘ˆ–Š‡‹”‘’‡”ƒ–‹‘•ǡ–Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ›‡–‡”‹–‘ ‡”–ƒ‹ƒ‰”‡‡‡–•ǡ –Š‡ƒ–—”‡‘ˆ™Š‹ Š’”‡ Ž—†‡•–Š‡’‘••‹„‹Ž‹–›‘ˆƒ‹‰ƒ”‡ƒ•‘ƒ„Ž‡‡•–‹ƒ–‡‘ˆ–Š‡ƒš‹—’‘–‡–‹ƒŽƒ‘—– –Š‡‘”’‘”ƒ–‹‘‘”•—„•‹†‹ƒ”› ‘—Ž†„‡”‡“—‹”‡†–‘’ƒ›–Š‹”†’ƒ”–‹‡•ǡƒ••‘‡‘ˆ–Š‡•‡ƒ‰”‡‡‡–•†‘‘–•’‡ ‹ˆ› ƒƒš‹—ƒ‘—–ƒ†–Š‡ƒ‘—–•ƒ”‡†‡’‡†‡–‘–Š‡‘—– ‘‡‘ˆˆ—–—”‡ ‘–‹‰‡–‡˜‡–•ǡ–Š‡ƒ–—”‡ƒ† Ž‹‡Ž‹Š‘‘†‘ˆ™Š‹ Š ƒ‘–„‡†‡–‡”‹‡†Ǥ

LETTERSOFCREDIT –Š‡‘”ƒŽ ‘—”•‡‘ˆ‹ˆ‡ ‘ǯ•”‡‹•—”ƒ ‡„—•‹‡••ǡ‹ˆ‡ ‘’”‘˜‹†‡• Ž‡––‡”• ‘ˆ ”‡†‹– –‘ ‘–Š‡” ’ƒ”–‹‡• ‘” „‡‡ˆ‹ ‹ƒ”‹‡•Ǥ„‡‡ˆ‹ ‹ƒ”›™‹ŽŽ–›’‹ ƒŽŽ›Š‘Ž†ƒŽ‡––‡”‘ˆ ”‡†‹–ƒ• ‘ŽŽƒ–‡”ƒŽ‹‘”†‡”–‘•‡ —”‡•–ƒ–—–‘”› ”‡†‹–ˆ‘” ‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ‡†‡†–‘‘”ƒ‘—–•†—‡ˆ”‘‹ˆ‡ ‘Ǥ‹ˆ‡ ‘ƒ›„‡”‡“—‹”‡†–‘•‡‡ ‘ŽŽƒ–‡”ƒŽ ƒŽ–‡”ƒ–‹˜‡• ‹ˆ ‹– ‹• —ƒ„Ž‡ –‘ ”‡‡™ ‡š‹•–‹‰ Ž‡––‡”• ‘ˆ ”‡†‹– ‘ ƒ–—”‹–› ȋ‡‡ ‘–‡ ͵ͳ –‘ –Š‡ ‘”’‘”ƒ–‹‘ǯ•ʹͲͳͷ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡–•ȌǤ

CONTINGENTLIABILITIES Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡ˆ”‘–‹‡–‘–‹‡•—„Œ‡ ––‘Ž‡‰ƒŽ ƒ –‹‘•ǡ‹ Ž—†‹‰ƒ”„‹–”ƒ–‹‘•ƒ† Žƒ••ƒ –‹‘•ǡƒ”‹•‹‰‹–Š‡‘”ƒŽ ‘—”•‡‘ˆ„—•‹‡••Ǥ –‹•‹Š‡”‡–Ž›†‹ˆˆ‹ —Ž––‘’”‡†‹ ––Š‡‘—– ‘‡‘ˆƒ›‘ˆ –Š‡•‡ ’”‘ ‡‡†‹‰• ™‹–Š ‡”–ƒ‹–›ǡ ƒ† ‹– ‹• ’‘••‹„Ž‡ –Šƒ– ƒ ƒ†˜‡”•‡ ”‡•‘Ž—–‹‘ ‘—Ž† Šƒ˜‡ ƒ ƒ–‡”‹ƒŽ ƒ†˜‡”•‡ ‡ˆˆ‡ –‘–Š‡ ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ’‘•‹–‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ ‘™‡˜‡”ǡ„ƒ•‡†‘‹ˆ‘”ƒ–‹‘’”‡•‡–Ž›‘™ǡ ‹–‹•‘–‡š’‡ –‡†–Šƒ–ƒ›‘ˆ–Š‡‡š‹•–‹‰Ž‡‰ƒŽƒ –‹‘•ǡ‡‹–Š‡”‹†‹˜‹†—ƒŽŽ›‘”‹–Š‡ƒ‰‰”‡‰ƒ–‡ǡ™‹ŽŽŠƒ˜‡ƒƒ–‡”‹ƒŽ ƒ†˜‡”•‡‡ˆˆ‡ –‘–Š‡ ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ’‘•‹–‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ

COMMITMENTSANDCONTRACTUALOBLIGATIONS –ƒ” Š͵ͳǡʹͲͳ͸ǡ–Š‡”‡Šƒ†„‡‡‘ƒ–‡”‹ƒŽ Šƒ‰‡•‹–Š‡ ‘–”ƒ –—ƒŽ‘„Ž‹‰ƒ–‹‘•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ†‹–• •—„•‹†‹ƒ”‹‡•ˆ”‘–Š‘•‡”‡’‘”–‡†‹–Š‡ʹͲͳͷ—ƒŽƬǤ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 23

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INCOMETAXES(NON-CONSOLIDATEDBASIS) Š‡ ‘”’‘”ƒ–‹‘ Šƒ†ǡ ƒ– ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ‘Ǧ ƒ’‹–ƒŽ Ž‘••‡• ‘ˆ ̈́ͺͺ ‹ŽŽ‹‘ ƒ˜ƒ‹Žƒ„Ž‡ –‘ ”‡†— ‡ ˆ—–—”‡ –ƒšƒ„Ž‡ ‹ ‘‡ȋ‹ Ž—†‹‰ ƒ’‹–ƒŽ‰ƒ‹•ȌǤŠ‡•‡Ž‘••‡•‡š’‹”‡‹ʹͲʹͺǡʹͲʹͻƒ†ʹͲ͵͸Ǥ ƒ††‹–‹‘ǡ–Š‡‘”’‘”ƒ–‹‘Šƒ• ƒ’‹–ƒŽŽ‘••‡•‘ˆ̈́ͺͳ‹ŽŽ‹‘–Šƒ– ƒ„‡—•‡†‹†‡ˆ‹‹–‡Ž›–‘”‡†— ‡ˆ—–—”‡ ƒ’‹–ƒŽ‰ƒ‹•Ǥ‡‡ƒŽ•‘Dz”ƒ•ƒ –‹‘• ™‹–Š‡Žƒ–‡†ƒ”–‹‡•dz„‡Ž‘™Ǥ

TRANSACTIONSWITHRELATEDPARTIES ‘™‡” ‹ƒ ‹ƒŽ Šƒ• ƒ ‡Žƒ–‡† ƒ”–› ƒ† ‘†— – ‡˜‹‡™ ‘‹––‡‡ ‘’‘•‡† ‡–‹”‡Ž› ‘ˆ ‹”‡ –‘”• ™Š‘ ƒ”‡ ‹†‡’‡†‡–‘ˆƒƒ‰‡‡–ƒ†‹†‡’‡†‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ• ‘–”‘ŽŽ‹‰•Šƒ”‡Š‘Ž†‡”ǤŠ‡ƒ†ƒ–‡‘ˆ–Š‹• ‘‹––‡‡‹•–‘”‡˜‹‡™’”‘’‘•‡†–”ƒ•ƒ –‹‘•™‹–Š”‡Žƒ–‡†’ƒ”–‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǡ‹ Ž—†‹‰‹–• ‘–”‘ŽŽ‹‰ •Šƒ”‡Š‘Ž†‡”ǡƒ†–‘ƒ’’”‘˜‡‘Ž›–Š‘•‡–”ƒ•ƒ –‹‘•–Šƒ–‹–†‡‡•ƒ’’”‘’”‹ƒ–‡ƒ†–Šƒ–ƒ”‡†‘‡ƒ–ƒ”‡––‡”• ƒ† ‘†‹–‹‘•Ǥ –Š‡‘”ƒŽ ‘—”•‡‘ˆ„—•‹‡••ǡ ”‡ƒ–Ǧ‡•–‹ˆ‡‡–‡”•‹–‘˜ƒ”‹‘—•–”ƒ•ƒ –‹‘•™‹–Š”‡Žƒ–‡† ‘’ƒ‹‡•™Š‹ Š

PART B PART B ‹ Ž—†‡’”‘˜‹†‹‰‰”‘—’‹•—”ƒ ‡„‡‡ˆ‹–•–‘‘–Š‡” ‘’ƒ‹‡•™‹–Š‹–Š‡‘™‡” ‹ƒ ‹ƒŽ‰”‘—’‘ˆ ‘’ƒ‹‡•Ǥ — Š –”ƒ•ƒ –‹‘• ƒ”‡ ƒ– ƒ”‡– –‡”• ƒ† ‘†‹–‹‘•Ǥ Š‡•‡ –”ƒ•ƒ –‹‘• ƒ”‡ ”‡˜‹‡™‡† „› –Š‡ ƒ’’”‘’”‹ƒ–‡ ”‡Žƒ–‡†’ƒ”–›ƒ† ‘†— –”‡˜‹‡™ ‘‹––‡‡Ǥ

POWER FINANCIAL CORPORATION ‹ˆ‡ ‘’”‘˜‹†‡•”‡‹•—”ƒ ‡ǡƒ••‡–ƒƒ‰‡‡–ƒ†ƒ†‹‹•–”ƒ–‹˜‡•‡”˜‹ ‡•ˆ‘”‡’Ž‘›‡‡„‡‡ˆ‹–’Žƒ•”‡Žƒ–‹‰ –‘’‡•‹‘ƒ†‘–Š‡”’‘•–Ǧ‡’Ž‘›‡–„‡‡ˆ‹–•ˆ‘”‡’Ž‘›‡‡•‘ˆ‘™‡” ‹ƒ ‹ƒŽǡƒ†‹ˆ‡ ‘ƒ†‹–••—„•‹†‹ƒ”‹‡•Ǥ Š‡•‡–”ƒ•ƒ –‹‘•ƒ”‡ƒ–ƒ”‡––‡”•ƒ† ‘†‹–‹‘•ƒ†ƒ”‡”‡˜‹‡™‡†„›–Š‡ƒ’’”‘’”‹ƒ–‡”‡Žƒ–‡†’ƒ”–›ƒ† ‘†— –”‡˜‹‡™ ‘‹––‡‡Ǥ  ‡–‡”• ‹–‘ –”ƒ•ƒ –‹‘• ™‹–Š •—„•‹†‹ƒ”‹‡• ‘ˆ ‹ˆ‡ ‘Ǥ Š‡•‡–”ƒ•ƒ –‹‘•ƒ”‡‹–Š‡‘”ƒŽ ‘—”•‡‘ˆ ‘’‡”ƒ–‹‘•ƒ†‹ Ž—†‡ȋ‹Ȍ’”‘˜‹†‹‰ ‡”–ƒ‹ƒ†‹‹•–”ƒ–‹˜‡•‡”˜‹ ‡•ǡȋ‹‹Ȍ†‹•–”‹„—–‹‰‹•—”ƒ ‡’”‘†— –•ƒ†ȋ‹‹‹Ȍ –Š‡•ƒŽ‡‘ˆ”‡•‹†‡–‹ƒŽ‘”–‰ƒ‰‡•–‘ ”‡ƒ–Ǧ‡•–‹ˆ‡ƒ†‘†‘‹ˆ‡ǤŠ‡•‡–”ƒ•ƒ –‹‘•ƒ”‡ƒ–ƒ”‡––‡”•ƒ† ‘†‹–‹‘•ƒ†ƒ”‡”‡˜‹‡™‡†„›–Š‡ƒ’’”‘’”‹ƒ–‡”‡Žƒ–‡†’ƒ”–›ƒ† ‘†— –”‡˜‹‡™ ‘‹––‡‡Ǥ  ‘˜‡„‡” ͳͶǡ ʹͲͳ͵ǡ –Š‡ ‘ƒ”† ‘ˆ ‹”‡ –‘”• ‘ˆ –Š‡ ‘”’‘”ƒ–‹‘ƒ’’”‘˜‡†ƒ–ƒšŽ‘•• ‘•‘Ž‹†ƒ–‹‘’”‘‰”ƒ ™‹–Š ǤŠ‹•’”‘‰”ƒƒŽŽ‘™•‘™‡” ‹ƒ ‹ƒŽ–‘‰‡‡”ƒ–‡•—ˆˆ‹ ‹‡––ƒšƒ„Ž‡‹ ‘‡–‘—•‡‹–•‘Ǧ ƒ’‹–ƒŽŽ‘••‡• ™Š‹ Š™‘—Ž†‘–Š‡”™‹•‡‡š’‹”‡ǡ™Š‹Ž‡ ”‡ ‡‹˜‡•–ƒš†‡†— –‹‘•™Š‹ Šƒ”‡—•‡†–‘”‡†— ‡‹–•–ƒšƒ„Ž‡‹ ‘‡Ǥ •‘ˆƒ” Š͵ͳǡʹͲͳ͸ǡ—†‡”–Š‹•’”‘‰”ƒǡ–Š‡‘”’‘”ƒ–‹‘‘™‡†̈́ʹ„‹ŽŽ‹‘‘ˆͶǤͷͲΨ•‡ —”‡††‡„‡–—”‡•‘ˆ Ǥ Š‡•‡ †‡„‡–—”‡• ”‡’”‡•‡– –Š‡ ‘•‹†‡”ƒ–‹‘ ‘„–ƒ‹‡† ˆ”‘ –Š‡ •ƒŽ‡ –‘  ‘ˆ ̈́ʹ„‹ŽŽ‹‘ ‘ˆ ͶǤͷͳΨ’”‡ˆ‡””‡† •Šƒ”‡•‹••—‡†–‘‘™‡” ‹ƒ ‹ƒŽˆ”‘ƒ™Š‘ŽŽ›‘™‡†•—„•‹†‹ƒ”›ǤŠ‡‘”’‘”ƒ–‹‘Šƒ•Ž‡‰ƒŽŽ›‡ˆ‘” ‡ƒ„Ž‡”‹‰Š–• –‘•‡––Ž‡–Š‡•‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•‘ƒ‡–„ƒ•‹•ƒ†–Š‡‘”’‘”ƒ–‹‘‹–‡†•–‘‡š‡” ‹•‡–Š‡•‡”‹‰Š–•Ǥ

SUMMARYOFCRITICALACCOUNTINGESTIMATESANDJUDGMENTS  –Š‡ ’”‡’ƒ”ƒ–‹‘ ‘ˆ –Š‡ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–•ǡ ƒƒ‰‡‡– ‘ˆ –Š‡‘”’‘”ƒ–‹‘ƒ†–Š‡ƒƒ‰‡‡–•‘ˆ‹–• •—„•‹†‹ƒ”‹‡• ᪫ ‹ˆ‡ ‘ ƒ†  ᪫ ƒ”‡ ”‡“—‹”‡† –‘ ƒ‡ ‡•–‹ƒ–‡• ƒ† ƒ••—’–‹‘• –Šƒ– ƒˆˆ‡ – –Š‡ ”‡’‘”–‡† ƒ‘—–• ‘ˆ ƒ••‡–•ǡ Ž‹ƒ„‹Ž‹–‹‡•ǡ ‡– ‡ƒ”‹‰• ƒ† ”‡Žƒ–‡† †‹• Ž‘•—”‡•Ǥ ‡› •‘—” ‡• ‘ˆ ‡•–‹ƒ–‹‘ — ‡”–ƒ‹–› ƒ† ƒ”‡ƒ•™Š‡”‡•‹‰‹ˆ‹ ƒ–Œ—†‰‡–•ƒ”‡ƒ†‡„›–Š‡ƒƒ‰‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ†–Š‡ƒƒ‰‡‡–•‘ˆ‹–• •—„•‹†‹ƒ”‹‡• ‹ Ž—†‡ǣ –Š‡ ‡–‹–‹‡• –‘ „‡ ‘•‘Ž‹†ƒ–‡†ǡ ‹•—”ƒ ‡ ƒ† ‹˜‡•–‡– ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡•ǡ ˆƒ‹” ˜ƒŽ—‡ ‡ƒ•—”‡‡–•ǡ‹˜‡•–‡–‹’ƒ‹”‡–ǡ‰‘‘†™‹ŽŽƒ†‹–ƒ‰‹„Ž‡ƒ••‡–•ȋ‹ Ž—†‹‰†‡ˆ‡””‡†•‡ŽŽ‹‰ ‘‹••‹‘•Ȍǡ ‹ ‘‡–ƒš‡•ƒ†‡’Ž‘›‡‡ˆ—–—”‡„‡‡ˆ‹–•ǤŠ‡•‡ƒ”‡†‡• ”‹„‡†‹–Š‡‘”’‘”ƒ–‹‘ǯ•ʹͲͳͷ—ƒŽƬƒ†‹ –Š‡ ‘–‡• –‘ –Š‡ ʹͲͳͷ ‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ –ƒ–‡‡–•Ǥ Š‡”‡ ™‡”‡ ‘ Šƒ‰‡• ‹ –Š‡ ‘”’‘”ƒ–‹‘ǯ• ”‹–‹ ƒŽ ƒ ‘—–‹‰‡•–‹ƒ–‡•ƒ†Œ—†‰‡–•‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸Ǥ  

B 24 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

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CHANGESINACCOUNTINGPOLICIES Š‡”‡™‡”‡‘ Šƒ‰‡•–‘–Š‡‘”’‘”ƒ–‹‘ǯ•ƒ ‘—–‹‰’‘Ž‹ ‹‡•ˆ”‘–Š‘•‡”‡’‘”–‡†ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷǤ

FUTUREACCOUNTINGCHANGES Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡• ‘–‹—‘—•Ž›‘‹–‘”–Š‡’‘–‡–‹ƒŽ Šƒ‰‡•’”‘’‘•‡†„›–Š‡ –‡”ƒ–‹‘ƒŽ  ‘—–‹‰ –ƒ†ƒ”†• ‘ƒ”† ȋ Ȍ ƒ† ƒƒŽ›œ‡ –Š‡ ‡ˆˆ‡ – –Šƒ– Šƒ‰‡• ‹ –Š‡ •–ƒ†ƒ”†• ƒ› Šƒ˜‡ ‘ –Š‡‹” ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•™Š‡–Š‡›„‡ ‘‡‡ˆˆ‡ –‹˜‡Ǥ

IFRS4–INSURANCECONTRACTS CORPORATION FINANCIAL POWER  —‡ ʹͲͳ͵ǡ –Š‡  ‹••—‡† ƒ ”‡˜‹•‡†  Ͷǡ Insurance Contract• ‡š’‘•—”‡ †”ƒˆ– ’”‘’‘•‹‰ Šƒ‰‡• –‘ –Š‡ ƒ ‘—–‹‰ •–ƒ†ƒ”† ˆ‘” ‹•—”ƒ ‡ ‘–”ƒ –•Ǥ Š‡  ‘–‹—‡•–‘†‡Ž‹„‡”ƒ–‡–Š‡’”‘’‘•ƒŽ•‹–Š‹•‡š’‘•—”‡

†”ƒˆ–ǤŠ‡’”‘’‘•‡†•–ƒ†ƒ”††‹ˆˆ‡”••‹‰‹ˆ‹ ƒ–Ž›ˆ”‘‹ˆ‡ ‘ǯ• —””‡–ƒ ‘—–‹‰ƒ†ƒ –—ƒ”‹ƒŽ’”ƒ –‹ ‡•—†‡” BPART –Š‡ƒƒ†‹ƒ••‡–‹ƒ„‹Ž‹–›‡–Š‘†ȋȌƒ†‹•‡š’‡ –‡†–‘’”‘†— ‡‘”‡˜‘Žƒ–‹Ž‡ˆ‹ƒ ‹ƒŽ”‡•—Ž–•Ǥ ‹ˆ‡ ‘Šƒ•†‹• Ž‘•‡†–Šƒ–‹–‹•ƒ –‹˜‡Ž›‘‹–‘”‹‰†‡˜‡Ž‘’‡–•‹–Š‹•ƒ”‡ƒƒ†–Šƒ–‹–™‹ŽŽ ‘–‹—‡–‘‡ƒ•—”‡ ‹•—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•—†‡” —””‡–ƒ ‘—–‹‰ƒ†ƒ –—ƒ”‹ƒŽ’‘Ž‹ ‹‡•ǡ‹ Ž—†‹‰ǡ—–‹Žƒ‡™  ˆ‘”‹•—”ƒ ‡ ‘–”ƒ –‡ƒ•—”‡‡–‹•‹••—‡†ƒ†‡ˆˆ‡ –‹˜‡Ǥ

IFRS9–FINANCIALINSTRUMENTS Š‡  ‹••—‡†  ͻǡ Financial Instruments, ™Š‹ Š ”‡’Žƒ ‡•  ͵ͻǡ Financial Instruments: Recognition and Measurementǡ –Š‡ —””‡– •–ƒ†ƒ”† ˆ‘” ƒ ‘—–‹‰ ˆ‘” ˆ‹ƒ ‹ƒŽ ‹•–”—‡–•Ǥ Š‡ •–ƒ†ƒ”† ™ƒ• ‘’Ž‡–‡† ‹ –Š”‡‡•‡’ƒ”ƒ–‡’Šƒ•‡•ǣ

 Žƒ••‹ˆ‹ ƒ–‹‘ƒ†‡ƒ•—”‡‡–ǣ–Š‹•’Šƒ•‡”‡“—‹”‡•–Šƒ–ˆ‹ƒ ‹ƒŽ ƒ••‡–• „‡ Žƒ••‹ˆ‹‡† ƒ– ‡‹–Š‡” ƒ‘”–‹œ‡† ‘•– ‘” ˆƒ‹” ˜ƒŽ—‡ ‘ –Š‡ „ƒ•‹• ‘ˆ –Š‡ ‡–‹–›ǯ• „—•‹‡•• ‘†‡Ž ˆ‘”ƒƒ‰‹‰–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•ƒ†–Š‡ ‘–”ƒ –—ƒŽ ƒ•ŠˆŽ‘™ Šƒ”ƒ –‡”‹•–‹ •‘ˆ–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•Ǥ

 ’ƒ‹”‡–‡–Š‘†‘Ž‘‰›ǣ–Š‹•’Šƒ•‡ ”‡’Žƒ ‡•–Š‡ —””‡–‹ —””‡†Ž‘••‘†‡Žˆ‘”‹’ƒ‹”‡–‘ˆˆ‹ƒ ‹ƒŽ ƒ••‡–•™‹–Šƒ‡š’‡ –‡†Ž‘••‘†‡ŽǤ

 ‡†‰‡ƒ ‘—–‹‰ǣ–Š‹•’Šƒ•‡”‡’Žƒ ‡•–Š‡ —””‡–”—Ž‡Ǧ„ƒ•‡†Š‡†‰‡ƒ ‘—–‹‰”‡“—‹”‡‡–•‹ ͵ͻ™‹–Š ‰—‹†ƒ ‡–Šƒ–‘”‡ Ž‘•‡Ž›ƒŽ‹‰•–Š‡ƒ ‘—–‹‰™‹–Šƒ‡–‹–›ǯ•”‹•ƒƒ‰‡‡–ƒ –‹˜‹–‹‡•Ǥ  ‡ ‡„‡” ʹͲͳͷǡ –Š‡  ’—„Ž‹•Š‡† ƒ ‡š’‘•—”‡ †”ƒˆ– ™‹–Š ’”‘’‘•‡† ƒ‡†‡–• –‘ ͶǡInsurance Contracts–‘ƒŽŽ‡˜‹ƒ–‡–Š‡–‡’‘”ƒ”› ‘•‡“—‡ ‡•‘ˆ–Š‡†‹ˆˆ‡”‡–‡ˆˆ‡ –‹˜‡†ƒ–‡•™‹–Š ͻǤ‘’ƒ‹‡•™Š‘•‡ „—•‹‡••‘†‡Ž‹•–‘’”‡†‘‹ƒ–Ž›‹••—‡‹•—”ƒ ‡ ‘–”ƒ –•ƒ”‡ƒŽŽ‘™‡†–Š‡‘’–‹‘–‘†‡ˆ‡”–Š‡‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ ͻ—–‹Ž–Š‡‡ƒ”Ž‹‡•–‘ˆ–Š‡ƒ†ƒ–‘”›‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ Ͷ‘” ƒ—ƒ”›ͳǡʹͲʹͳǤ ‘” ‘’ƒ‹‡•–Šƒ–†‘‘– ‹••—‡ ‹•—”ƒ ‡ ‘–”ƒ –•ǡ –Š‡ ‡ˆˆ‡ –‹˜‡ †ƒ–‡ ‘ˆ ƒ—ƒ”› ͳǡ ʹͲͳͺ•Š‘—Ž†”‡ƒ‹ǤŠ‡‘”’‘”ƒ–‹‘ƒ†‹–• •—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ–Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ

IFRS15–REVENUEFROMCONTRACTSWITHCUSTOMERS Š‡ ‹••—‡† ͳͷǡRevenue from Contracts with Customers,™Š‹ Š’”‘˜‹†‡•ƒ•‹‰Ž‡‘†‡Žˆ‘”‡–‹–‹‡•–‘ —•‡‹ƒ ‘—–‹‰ˆ‘””‡˜‡—‡ƒ”‹•‹‰ˆ”‘ ‘–”ƒ –•™‹–Š —•–‘‡”•ǤŠ‡‘†‡Ž”‡“—‹”‡•ƒ‡–‹–›–‘”‡ ‘‰‹œ‡ ”‡˜‡—‡ ƒ• –Š‡ ‰‘‘†• ‘” •‡”˜‹ ‡• ƒ”‡ –”ƒ•ˆ‡””‡† –‘ —•–‘‡”• ‹ ƒ ƒ‘—– –Šƒ– ”‡ˆŽ‡ –• –Š‡ ‡š’‡ –‡† ‘•‹†‡”ƒ–‹‘Ǥ Š‡ ”‡˜‡—‡ ”‡ ‘‰‹–‹‘ ”‡“—‹”‡‡–• ‹  ͳͷ †‘‘–ƒ’’Ž›–‘–Š‡”‡˜‡—‡ƒ”‹•‹‰ˆ”‘ ‹•—”ƒ ‡ ‘–”ƒ –•ǡŽ‡ƒ•‡•ƒ†ˆ‹ƒ ‹ƒŽ‹•–”—‡–•Ǥ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͺǤŠ‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 25

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IFRS16–LEASES  ƒ—ƒ”› ʹͲͳ͸ǡ –Š‡  ‹••—‡†  ͳ͸ǡ Leases, ™Š‹ Š ”‡“—‹”‡• ƒ Ž‡••‡‡ –‘ ”‡ ‘‰‹œ‡ ƒ ”‹‰Š–Ǧ‘ˆǦ—•‡ ƒ••‡– ”‡’”‡•‡–‹‰ ‹–• ”‹‰Š– –‘ —•‡ –Š‡ —†‡”Ž›‹‰ Ž‡ƒ•‡† ƒ••‡– ƒ† ƒ ‘””‡•’‘†‹‰ Ž‡ƒ•‡ Ž‹ƒ„‹Ž‹–› ”‡’”‡•‡–‹‰ ‹–• ‘„Ž‹‰ƒ–‹‘–‘ƒ‡Ž‡ƒ•‡’ƒ›‡–•ˆ‘”ƒŽŽŽ‡ƒ•‡•ǤŽ‡••‡‡”‡ ‘‰‹œ‡•–Š‡”‡Žƒ–‡†‡š’‡•‡ƒ•†‡’”‡ ‹ƒ–‹‘‘–Š‡ ”‹‰Š–Ǧ‘ˆǦ—•‡ƒ••‡–ƒ†‹–‡”‡•–‘–Š‡Ž‡ƒ•‡Ž‹ƒ„‹Ž‹–›ǤŠ‘”–Ǧ–‡”ȋŽ‡••–Šƒͳʹ‘–Š•Ȍƒ†Ž‘™Ǧ˜ƒŽ—‡ƒ••‡–Ž‡ƒ•‡• ƒ”‡‡š‡’–ˆ”‘–Š‡•‡”‡“—‹”‡‡–•Ǥ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͻǤŠ‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ

INTERNALCONTROLOVERFINANCIALREPORTING Š‡ ‘”’‘”ƒ–‹‘ǯ• ‹–‡”ƒŽ ‘–”‘Ž ‘˜‡” ˆ‹ƒ ‹ƒŽ ”‡’‘”–‹‰ ‹• †‡•‹‰‡† –‘ ’”‘˜‹†‡ ”‡ƒ•‘ƒ„Ž‡ ƒ••—”ƒ ‡ ”‡‰ƒ”†‹‰ –Š‡ ”‡Ž‹ƒ„‹Ž‹–› ‘ˆ ˆ‹ƒ ‹ƒŽ ”‡’‘”–‹‰ ƒ† –Šƒ– –Š‡ ’”‡’ƒ”ƒ–‹‘ ‘ˆ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ˆ‘” ‡š–‡”ƒŽ ’—”’‘•‡• ‹• ‹ ƒ ‘”†ƒ ‡ ™‹–Š Ǥ Š‡ ‘”’‘”ƒ–‹‘ǯ• ƒƒ‰‡‡– ‹• ”‡•’‘•‹„Ž‡ ˆ‘” ‡•–ƒ„Ž‹•Š‹‰ ƒ†

PART B PART B ƒ‹–ƒ‹‹‰ ‡ˆˆ‡ –‹˜‡ ‹–‡”ƒŽ ‘–”‘Ž ‘˜‡” ˆ‹ƒ ‹ƒŽ ”‡’‘”–‹‰Ǥ ŽŽ ‹–‡”ƒŽ ‘–”‘Ž •›•–‡• Šƒ˜‡ ‹Š‡”‡– Ž‹‹–ƒ–‹‘• ƒ† ƒ› „‡ ‘‡ ‹‡ˆˆ‡ –‹˜‡ „‡ ƒ—•‡ ‘ˆ Šƒ‰‡• ‹ ‘†‹–‹‘•Ǥ Š‡”‡ˆ‘”‡ǡ ‡˜‡ –Š‘•‡ •›•–‡• †‡–‡”‹‡†–‘„‡‡ˆˆ‡ –‹˜‡ ƒ’”‘˜‹†‡‘Ž›”‡ƒ•‘ƒ„Ž‡ƒ••—”ƒ ‡™‹–Š”‡•’‡ ––‘ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–’”‡’ƒ”ƒ–‹‘ ƒ†’”‡•‡–ƒ–‹‘Ǥ POWER FINANCIAL CORPORATION Š‡”‡Šƒ˜‡„‡‡‘ Šƒ‰‡•‹–Š‡‘”’‘”ƒ–‹‘ǯ•‹–‡”ƒŽ ‘–”‘Ž‘˜‡”ˆ‹ƒ ‹ƒŽ”‡’‘”–‹‰†—”‹‰–Š‡–Š”‡‡Ǧ‘–Š ’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™Š‹ ŠŠƒ˜‡ƒ–‡”‹ƒŽŽ›ƒˆˆ‡ –‡†ǡ‘”ƒ”‡”‡ƒ•‘ƒ„Ž›Ž‹‡Ž›–‘ƒ–‡”‹ƒŽŽ›ƒˆˆ‡ –ǡ–Š‡ ‘”’‘”ƒ–‹‘ǯ•‹–‡”ƒŽ ‘–”‘Ž‘˜‡”ˆ‹ƒ ‹ƒŽ”‡’‘”–‹‰Ǥ

B 26 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

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SUMMARYOFQUARTERLYRESULTS

 2016 ʹͲͳͷ  ʹͲͳͶ  Q1 Ͷ ͵ ʹ ͳ Ͷ ͵  ʹ ͳ

‘–ƒŽ”‡˜‡—‡ȏͳȐ  12,970 ͺǡͻ͸ͳ ͻǡʹͺͳ ͶǡͻͲͳ ͳ͵ǡ͵͸ͻ ͳͳǡ͵Ͷͳ ͻǡͳ͵Ͷ ͳͲǡ͹ͳ͸ ͳͲǡͷͺͶ

’‡”ƒ–‹‰‡ƒ”‹‰•ȋƒ––”‹„—–ƒ„Ž‡–‘ ‘‘ •Šƒ”‡Š‘Ž†‡”•ȌȏʹȐ  476 ͷʹͳ ͷͻ͸ ͷͷͻ ͷ͸ͷ ͷʹͷ ͷͻͷ ͷͶͷ ͶͶͲ ’‡”•Šƒ”‡Ȃ„ƒ•‹ ȏʹȐ  0.67 ͲǤ͹͵ ͲǤͺ͵ ͲǤ͹ͻ ͲǤ͹ͻ ͲǤ͹Ͷ ͲǤͺ͵ ͲǤ͹͹ ͲǤ͸ʹ

–Š‡”‹–‡•ȋ‘Ǧ‘’‡”ƒ–‹‰‡ƒ”‹‰•Ȍȏʹǡ͵Ȑ  (217) ͹ ͸ ͷ͹ ͺ ȋͳͻȌ Ϋ ʹ͵ ʹ͹ ȏʹȐ

’‡”•Šƒ”‡Ȃ„ƒ•‹    (0.31) ͲǤͲͳ ͲǤͲͳ ͲǤͲͺ ͲǤͲͳ ȋͲǤͲ͵Ȍ Ϋ ͲǤͲ͵ ͲǤͲͶ CORPORATION FINANCIAL POWER

‡–‡ƒ”‹‰•ȋƒ––”‹„—–ƒ„Ž‡–‘ ‘‘ •Šƒ”‡Š‘Ž†‡”•Ȍ  259 ͷʹͺ ͸Ͳʹ ͸ͳ͸ ͷ͹͵ ͷͲ͸ ͷͻͷ ͷ͸ͺ Ͷ͸͹ ’‡”•Šƒ”‡Ȃ„ƒ•‹   0.36 ͲǤ͹Ͷ ͲǤͺͶ ͲǤͺ͹ ͲǤͺͲ ͲǤ͹ͳ ͲǤͺ͵ ͲǤͺͲ ͲǤ͸͸ ’‡”•Šƒ”‡Ȃ†‹Ž—–‡†  0.36 ͲǤ͹Ͷ ͲǤͺͶ ͲǤͺ͸ ͲǤͺͲ ͲǤ͹ͳ ͲǤͺ͵ ͲǤͺͲ ͲǤ͸͸ BPART

ȏͳȐ ‡˜‡—‡‹–Š‡•‡ ‘†“—ƒ”–‡”‘ˆʹͲͳͷ‹•Ž‘™‡”†—‡–‘ƒ†‡ ”‡ƒ•‡‹–Š‡˜ƒŽ—‡‘ˆ‹ˆ‡ ‘ǯ•„‘†’‘”–ˆ‘Ž‹‘”‡•—Ž–‹‰ˆ”‘‹ ”‡ƒ•‹‰‹–‡”‡•–”ƒ–‡•Ǥ ȏʹȐ ’‡”ƒ–‹‰‡ƒ”‹‰•ƒ†‘’‡”ƒ–‹‰‡ƒ”‹‰•’‡”•Šƒ”‡ƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”•ǡƒ†‘–Š‡”‹–‡•ƒ†‘–Š‡”‹–‡•’‡”•Šƒ”‡ƒ”‡‘Ǧ  ˆ‹ƒ ‹ƒŽ‡ƒ•—”‡•Ǥ ‘”ƒ†‡ˆ‹‹–‹‘‘ˆ–Š‡•‡‘Ǧ ˆ‹ƒ ‹ƒŽ‡ƒ•—”‡•ǡ’Ž‡ƒ•‡”‡ˆ‡”–‘–Š‡Dzƒ•‹•‘ˆ”‡•‡–ƒ–‹‘Ȃ‘Ǧ  ‹ƒ ‹ƒŽ‡ƒ•—”‡•ƒ† ”‡•‡–ƒ–‹‘dz•‡ –‹‘‹–Š‹•ƬǤ ȏ͵Ȑ Š‡‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ ƒ†ƒ”‰‡•ƒǯ•–Š‡”‹–‡•ȋ‘Ǧ‘’‡”ƒ–‹‰‡ƒ”‹‰•Ȍƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ  2016 ʹͲͳͷ  ʹͲͳͶ  –Š‡”‹–‡• Q1 Ͷ ͵ ʹ ͳ Ͷ ͵  ʹ ͳ     ‡•–”— –—”‹‰ƒ†‘–Š‡” Šƒ”‰‡•  Ϋ ȋͳͷȌ Ϋ Ϋ Ϋ Ϋ Ϋ ȋͺȌ Ϋ  ‹•–”‹„—–‹‘–‘ Ž‹‡–•  Ϋ ΫΫΫΫȋ͵͸ȌΫΫΫ ƒ”‰‡•ƒ   ‘–ƒŽȂ ƒ‹‘’ƒ”–‹ƒŽ†‹•’‘•ƒŽ  101 Ͷͺ Ϋ Ϋ ͻ ʹͷ ʹ ͳ͹ ʹ͸  —‡œ˜‹”‘‡‡–Ȃ ƒ‹‘‡š Šƒ‰‡  Ϋ Ϋ Ϋ ʹ ʹ Ϋ Ϋ ͳ͹ Ϋ ƒˆƒ”‰‡ ‘Ž ‹Ȃƒ”Ǧ–‘Ǧƒ”‡–‰ƒ‹• ƒ†”‡˜‡”•ƒŽ‘ˆ‹’ƒ‹”‡– Šƒ”‰‡•  ”‡Žƒ–‡†–‘–Š‡‡”‰‡”  Ϋ Ϋ ͺ ͺͲ Ϋ Ϋ Ϋ Ϋ Ϋ ƒˆƒ”‰‡Ȃ ’ƒ‹”‡–ƒ†  ”‡•–”— –—”‹‰ Šƒ”‰‡•  Ϋ ΫΫȋʹ͵ȌΫ ΫΫΫΫ  ƒˆƒ”‰‡ ‘Ž ‹Ȃ ’ƒ‹”‡– Šƒ”‰‡  (308) Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ  ‰‹‡Ȃ ’ƒ‹”‡– Šƒ”‰‡  (9) Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ Ϋ ‡”›•Ȃ ’ƒ‹”‡–ƒ†  ”‡•–”— –—”‹‰ Šƒ”‰‡•  Ϋ ȋʹ͸ȌΫΫΫ ΫΫΫΫ  –Š‡”ȋ Šƒ”‰‡Ȍ‹ ‘‡  (1) Ϋ ȋʹȌ ȋʹȌ ȋ͵Ȍ ȋͺȌ ȋʹȌ ȋ͵Ȍ ͳ   (217) ͹ ͸ ͷ͹ ͺ ȋͳͻȌ Ϋ ʹ͵ ʹ͹  

POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016 B 27

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_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ Total ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•ȏ‘–‡͸ ‘‘†™‹ŽŽ –ƒ‰‹„Ž‡ƒ••‡–• ‡ˆ‡””‡†–ƒšƒ••‡–• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•  –Š‡”ƒ••‡–• ™‡”Ǧ‘ —’‹‡†’”‘’‡”–‹‡•ƒ† ƒ’‹–ƒŽƒ••‡–•   Total ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• –ƒ–‡† ƒ’‹–ƒŽȏ‘–‡ͺȐ Equity •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ȏ‘–‡͹Ȑ Liabilities ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ȏ —†•Š‡Ž†„› ‡†‹‰‹•—”‡”• ˜‡•–‡–•ȏ‘–‡ͶȐ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• A ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ ȋ—ƒ—†‹–‡†Ȍ    POWER Total ‘–ƒŽ•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–› •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ— ‡ˆ‡””‡†–ƒšŽ‹ƒ„‹Ž‹–‹‡• –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ‡„‡–—”‡•ƒ†‘–Š‡”†‡„–‹•–”—‡–• „Ž‹‰ƒ–‹‘•–‘•‡ —”‹–‹œƒ–‹‘‡–‹–‹‡• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ȏ‘–‡͹Ȑ ‡‹•—”ƒ ‡ƒ••‡–•ȏ‘–‡͹Ȑ ‡–ƒ‹‡†‡ƒ”‹‰• Total ‡•‡”˜‡• E n ssets g ‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”• ˜‡•–‡–’”‘’‡”–‹‡• Šƒ”‡• ‘”–‰ƒ‰‡Ž‘ƒ• ‘‘•Šƒ”‡• ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• ‘†• 0 2 _     B P assets liabilities equit liabilities   F C 28 _ 2  0  y POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 FINANCIAL   6 - 1 1   - and 0 5 _ v 1  equit . i n d d

B y 2  8  CORPORATION  ‘–‡ͷȐ Ȑ ‘‹›‘†” ȏ‘–‡͸Ȑ †’‘Ž‹ ›Š‘Ž†‡”• 193,001 407,794 164,109 114,488 407,794 193,001 155,352 376,334 March 28,979 31,460 12,592 18,868 12,954 14,217 9,193 5,852 1,846 8,321 5,049 7,272 7,108 1,097 2,835 3,980 2,580 1,801 8,020 2,073 6,816 7,155 2,116 5,144 1,267 2016 675 804  31                               ,             ‡ ‡„‡”͵ͳ ͳͻͺǡͳͻͶ Ͷͳ͹ǡ͸͵Ͳ ͳ͸͸ǡͲͳʹ ͳͳͷǡ͵͹ͻ Ͷͳ͹ǡ͸͵Ͳ ͳͷͺǡͶͻʹ ͳͻͺǡͳͻͶ ͵ͺͷǡʹʹͺ ʹͻǡͶͳ͵ ͵ʹǡͶͲʹ ͳʹǡͺͷʹ ͳͷǡͷͳʹ ͳͻǡͷͷͲ ͳͶǡʹͺ͵ ͻǡʹͳͲ ͷǡͻͺ͵ ͳǡͻ͸ͳ ͸ǡͻͲͺ ͳǡͳͲ͸ ͺǡ͸ͻͶ ͷǡʹ͵͹ ͹ǡʹͺͻ ʹǡͻͲͷ Ͷǡͳͺͺ ʹǡͷͺͲ ͳǡͻͲʹ ͹ǡ͸ͺ͸ ʹǡ͸ͺʹ ͸ǡͻʹ͹ ͹ǡͲͻʹ ʹǡʹͷ͵ ͷǡͳ͵ͳ ͳǡͺͺ͵ ʹͲͳͷ ͷʹͲ ͺͲͶ  ǡ   116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6  116-05-12 2:01 PM ʹ͹ ͵͵ ʹͺͲ ͵ͷͲ ͵ͺͳ ͹͵͹ ͻͷ͸ ͷ͹͵ ͻͷ͸ ͳͲͶ ʹͲͳͷ ͲǤͺͲ ͲǤͺͲ ȋͺ͹ͶȌ ȋͶͺ͵Ȍ ͳǡͷ͸ͷ ʹǡͻͷͺ ͸ǡͻ͵ʹ ͳǡʹͲͻ ͹ǡͺͲ͸ ͳǡʹ͵͸ Ͷǡͷʹ͵ ͳǡͻͳͶ ͷǡ͸ͶͲ Ͷǡ͵ͷͳ ͳǡͶ͵Ͳ ͻǡͺͺͻ ͷǡͳͷ͹ ͳ͵ǡ͵͸ͻ ͳʹǡͳ͸Ͳ 29 B                                        70 31 274 369 792 814 634 564 259 564 105 2016 0.36 0.36 (180) (911) (472) 7,015 7,926 1,662 2,411 1,882 6,642 4,073 6,170 3,139 1,581 9,678 12,970 12,156 Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ†‹ ‘‡–ƒš‡•  ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• ȏ‘–‡ͷȐ  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ȏ‘–‡ͳͷȐ  9 share 2  B

d d n i . 1 v  _ 5 common to   0  - 1 1 -  per  6  1 0 2 _ Ȃ‹Ž—–‡† ”‘•• Ȃƒ•‹  ‡†‡† C earnings  F P ”‘••’”‡‹—•™”‹––‡ ‡‰—Žƒ”‡–‹˜‡•–‡–‹ ‘‡ Šƒ‰‡‹ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡Š‘Ž†‡”• •—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –• ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”• ‡†‡†’”‡‹—• ‘‘•Šƒ”‡Š‘Ž†‡”• _ ttributable 2  A  Earnings  ‘Ž‹ ›Š‘Ž†‡”„‡‡ˆ‹–• ‘Ž‹ ›Š‘Ž†‡”†‹˜‹†‡†•ƒ†‡š’‡”‹‡ ‡”‡ˆ—†• ‘‹••‹‘• ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡†  ‘‡–ƒš‡•ȏ‘–‡ͳ͵Ȑ ‡–‹˜‡•–‡–‹ ‘‡  ‡‡‹ ‘‡  Expenses       ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•ǡ‡š ‡’–’‡”•Šƒ”‡ƒ‘—–•Ȑ Revenues ”‡‹—‹ ‘‡ ”‡‹—‹ ‘‡ǡ‡–     ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• Net ˜‡•–‡–‹ ‘‡ǡ‡– ‘–ƒŽ‡–’‘Ž‹ ›Š‘Ž†‡”„‡‡ˆ‹–• ‘–ƒŽ”‡˜‡—‡• Šƒ‰‡‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”• ‹ƒ ‹‰ Šƒ”‰‡•  ‘–ƒŽ‡š’‡•‡• 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B29 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B30 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _   A  Total  Other      Other  Net  ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ ȋ—ƒ—†‹–‡†Ȍ          E n ttributable g ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• Items  Total Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••‡•Ȍ‘ˆŒ‘‹–Ž› ‘–”‘Ž ‡–—”‡ƒŽ‹œ‡†ˆ‘”‡‹‰‡š Šƒ‰‡‰ƒ‹•ȋŽ‘••‡•Ȍ‘–”ƒ•Žƒ–‹‘‘ ‡–—”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘ ƒ•ŠˆŽ‘™Š‡†‰‡• Items ‘‘•Šƒ”‡Š‘Ž†‡”• ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡Š‘Ž†‡”• ‡–—”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘ Total Šƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••‡•Ȍ‘ˆŒ‘‹–Ž› ‘–”‘Ž  ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹–  –—ƒ”‹ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ‘„‡‡ˆ‹–’Žƒ•ȏ‘–‡ͳʹȐ 0  earnings 2   ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹– ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘‡—”‘†‡„–†‡•‹‰ƒ–‡†ƒ•Š‡†‰‡‘ˆ ’‡”‹ ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ‘–”ƒ•Žƒ–‹‘ƒ”‹•‹‰†—”‹‰–Š‡  ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹– ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ  ‘‡–ƒšȋ‡š’‡•‡Ȍ„‡‡ˆ‹–  ‡ƒŽ‹œ‡†ȋ‰ƒ‹•ȌŽ‘••‡•–”ƒ•ˆ‡””‡†–‘‡–‡ƒ”‹‰• ‡ƒŽ‹œ‡†ȋ‰ƒ‹•ȌŽ‘••‡•–”ƒ•ˆ‡””‡†–‘‡–‡ƒ”‹‰• ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ   ‘‡–ƒš‡š’‡•‡ȋ„‡‡ˆ‹–Ȍ _  B P comprehensive   comprehensive comprehensive F   C   – – 30 that that _   items items 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6     to will may - 1 1    - that that 0  5 not  _ be v 1    . may will  i reclassified n be  income   d income income d 

reclassified 

not  B be 3 0   reclassified be  (loss)   (loss) (loss)  reclassified  ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ƒ••‡–• subsequently     subsequently    to  net  to   net earnings  earnings ˆ‘”‡‹‰‘’‡”ƒ–‹‘• ˆ Ž‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• Ž‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• ‘† –‹˜••‹ ˆ‘”‡‹‰‘’‡”ƒ–‹‘• ‡–‹˜‡•–‡–•‹ Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ (364) (982) (973) (928) (364) (338) (719) (288) (209) 2016 564 121 122 (24) (57) (37) (31) 10 62 98 31 71 70 (1) 1 9 4                           ͳǡͷͶͲ ͳǡͷͶͲ ȋͳ͵ͷȌ ȋʹͶ͵Ȍ ȋͳͻͶȌ ʹͲͳͷ ͹͵ͻ ͹ͷͻ ͳ͵͸ ͷͺͶ ͻͷ͸ ͻͺͲ ͷʹ͹ ͹͹ͺ ȋʹͻȌ ȋͺ͵Ȍ ȋ͹ͶȌ ͷ͹ ʹͲ ͷͳ ͵͵ ͳʹ Ͷͷ ͷ͵ ȋͶȌ ͳ Ȃ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

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1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM › › ʹ ‘–ƒŽ ‘–ƒŽ ‡“—‹– ‡“—‹– 31 B   ‰ ‰ ‘Ǧ ‘Ǧ ‹–‡”‡•–• ‹–‡”‡•–• ‘–”‘ŽŽ‹ ‘–”‘ŽŽ‹ Ž   ” ” –Š‡ –Š‡ ‹ ‘‡ ‹ ‘‡ ȏ‘–‡ͳͶȐ ‘–ƒŽ ȏ‘–‡ͳͶȐ ‘–ƒ ‘’”‡Š‡•‹˜‡ ‘’”‡Š‡•‹˜‡   † † Šƒ”‡Ǧ„ƒ•‡ Šƒ”‡Ǧ„ƒ•‡ ‘’‡•ƒ–‹‘ ‘’‡•ƒ–‹‘  † † Ͷ ͳͶʹ ͵ͻͲ ͷ͵ʹ ͳͳǡͺͺ͵ ʹͺǡͻͲ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ‡ƒ”‹‰• ‡ƒ”‹‰• ‡–ƒ‹‡ ‡–ƒ‹‡ •Šƒ”‡• •Šƒ”‡• ‘‘ ‘‘ –ƒ–‡† ƒ’‹–ƒŽ ‡•‡”˜‡•  † •Šƒ”‡• •Šƒ”‡• ʹǡͷͺͲ ͺͲͶ ͳͶǡʹͳ͹ ͳʹ͵ ͳǡͳͶͶ ͳǡʹ͸͹ ͳʹǡͷͻʹ ͵ͳǡͶ͸Ͳ ʹǡͷͺͲ ͺͲͶ ͳͶǡʹͺ͵ ͳͶʹ ͳǡ͹Ͷͳ ͳǡͺͺ͵ ͳʹǡͺͷʹ ͵ʹǡͶͲʹ ’”‡ˆ‡””‡† ’”‡ˆ‡””‡ ‡”’‡–—ƒŽ ‡”’‡–—ƒŽ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  1 3  year B 

of d  d n i . 1 period v  _ 5 of  0 - 1 1 - 6 end beginning   1 0 2 _ C F P ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡•‘‘•Šƒ”‡•‹–‡”‡•–• Ȃ‘™‡”•Š‹’‘ˆ•—„•‹†‹ƒ”‹‡•ǡ Ȃ ƒ’‹–ƒŽƒ†‘–Š‡” Ȃ ȋ͵͵Ȍ Ȃ Ȃ Ȃ ȋʹ͸͸Ȍ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋʹȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋ͵͵Ȍ Ȃ Ȃ Ȃ ȋʹ͸͸Ȍ Ȃ ȋͳͺͳȌ ȋʹͲȌ ȋͳͺͳȌ ȋʹʹȌ ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡•‘‘•Šƒ”‡•‹–‡”‡•–• Ȃ‘™‡”•Š‹’‘ˆ•—„•‹†‹ƒ”‹‡•ǡ Ȃ ƒ’‹–ƒŽƒ†‘–Š‡” Ȃ ȋ͵ͳȌ Ȃ Ȃ Ȃ ȋʹͺͲȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋͶͷȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋ͵ͳȌ Ȃ Ȃ Ȃ ȋʹͺͲȌ Ȃ ȋͳ͹ͻȌ ȋ͸ͳȌ ȋͳ͹ͻȌ ȋͳͲ͸Ȍ _ 2 ‡–‡ƒ”‹‰• Ȃ Ȃ ʹͻͲ Ȃ Ȃ Ȃ ʹ͹Ͷ ͷ͸Ͷ  –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡‘–ƒŽ ‘’”‡Š‡•‹˜‡‹ ‘‡‹˜‹†‡†•–‘•Šƒ”‡Š‘Ž†‡”• Ȃ Ȃ‹˜‹†‡†•–‘‘Ǧ ‘–”‘ŽŽ‹‰ ȂŠƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘  Ȃ –‘ ‘’–‹‘•‡š‡” ‹•‡†ˆˆ‡ –•‘ˆ Šƒ‰‡•‹ Ȃ ͸Ͳ͸ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† Ȃ Ȃ Ȃ Ȃ Ȃ ͸ͳ ͶͲ͹ ʹǡͷͺͲ ͶͲ͹ Ȃ ͺͲͶ ͶͲ͹ Ȃ ͶͲ͹ ͳ͵ǡͶ͸ͻ ͳ͵ ͳ͹͹ ͷʹ͹ ȋͶͶȌ ͳͳͳ ͷͺͶ ͳǡͷͶͲ Ȃ ͹ͻ͹ Ȃ  ͳ͵ ͻͲͺ ȋͶͶȌ ͳʹǡʹͶ͸ ͷ ͵ʹ ͵ͲǡͲͲ͹ ͳͺ Ͷͻ   Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳͷ ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ  ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ”‡–‡ƒ”‹‰• ʹǡͷͺͲ ͹Ͷ͵ ͳ͵ǡͳ͸ –ƒ–‡† ƒ’‹–ƒŽ Ȃ Ȃ ͸Ͳ͸ Ȃ ‡•‡”˜‡• Ȃ Ȃ ͵ͷͲ ͻͷ͸ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ‘–ƒŽ ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ Ȃ‹˜‹†‡†•–‘•Šƒ”‡Š‘Ž†‡”• Ȃ Ȃ‹˜‹†‡†•–‘‘Ǧ ‘–”‘ŽŽ‹‰ ȂŠƒ”‡Ǧ„ƒ•‡† ‘’‡•ƒ–‹‘ –‘ ‘’–‹‘•‡š‡” ‹•‡† Ȃ ʹͻͲˆˆ‡ –•‘ˆ Šƒ‰‡•‹ Balance, Ȃ Ȃ Ȃ Ȃ ȋͷͻ͹Ȍ Ȃ ȋͷͻ͹Ȍ Ȃ ȋͷͻ͹Ȍ ȋͷͻ͹Ȍ Ȃ ȋ͵͵ͳȌ ȋͷ͹Ȍ Ȃ ȋͻʹͺȌ ͳ͵ ȋ͵͸ͶȌ ȋ͵ʹȌ Ȃ Ȃ  ͳ͵ ȋ͵ʹȌ ͷ ͵ʹ ͳͺ Ȃ          Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳ͸ ȋ—ƒ—†‹–‡†Ȍ ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ  Balance,      0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B31 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B32 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ Šƒ‰‡‹Ž‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”•  ˜‡•–‡–‹‹˜‡•–‡–’”‘’‡”–‹‡•ƒ†‘–Š‡”  Net  Cash ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ„‡‰‹‹‰‘ˆ›‡ƒ”  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–• ˆˆ‡ –‘ˆ Šƒ‰‡•‹‡š Šƒ‰‡”ƒ–‡•‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡– ˜‡•–‡–‹•Šƒ”‡• ˜‡•–‡–‹‘”–‰ƒ‰‡Ž‘ƒ• ˜‡•–‡–‹„‘†• ƒŽ‡‘ˆ•Šƒ”‡• ‘”–‰ƒ‰‡Ž‘ƒ”‡’ƒ›‡–• ‘†•ƒŽ‡•ƒ†ƒ–—”‹–‹‡• Investment ••—‡‘ˆ ‘‘•Šƒ”‡•„›–Š‡‘”’‘”ƒ–‹‘ȏ‘–‡ͺȐ ‹˜‹†‡†•’ƒ‹† Financing      †Œ—•–‹‰‹–‡• ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• Operating ȏ‹‹ŽŽ‹‘•‘ˆƒƒ†‹ƒ†‘ŽŽƒ”•Ȑ ȋ—ƒ—†‹–‡†Ȍ        ••—‡‘ˆ ‘‘•Šƒ”‡•„›•—„•‹†‹ƒ”‹‡•  ‘‡–ƒš’ƒ‹†ǡ‡–‘ˆ”‡ˆ—†•”‡ ‡‹˜‡† Šƒ‰‡‹‘„Ž‹‰ƒ–‹‘•–‘•‡ —”‹–‹œƒ–‹‘‡–‹–‹‡• Šƒ‰‡•‹‘–Š‡”†‡„–‹•–”—‡–• ‡’—” Šƒ•‡‘ˆ ‘‘•Šƒ”‡•„›•—„•‹†‹ƒ”‹‡• –Š‡” E n g Šƒ‰‡‹ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘••  –Š‡” Šƒ‰‡‹”‡‹•—”ƒ ‡ƒ••‡–• ‘‘•Šƒ”‡• ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• –‡”‡•–’ƒ‹† –‡”‡•–ƒ††‹˜‹†‡†•”‡ ‡‹˜‡† Šƒ‰‡‹ˆ—†•Š‡Ž†—†‡””‡‹•—”ƒ ‡ ‘–”ƒ –• ›•—„•‹†‹ƒ”‹‡•–‘‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• Šƒ‰‡‹ˆ—†•Š‡Ž†„› ‡†‹‰‹•—”‡”• Šƒ‰‡‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•  0  cash 2  _ and B P F C 32  _ from  cash 2   activities activities 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016  1 activities 6 - 1   operating equivalents, 1 - 0 5 _ v 1   . i n  d d



activities B 3  2 end  of   period includes   • Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ (2,411) (1,012) (8,314) 1,356 4,188 1,136 7,698 1,497 3,208 3,980 (478) (131) (266) (864) (117) (208) (936) (180) (138) (135) (565) (125) 2016 662 634 260 (61) (32) (33) 19 89 15 65 (5) (9) –                                          ȋͳͲǡͲ͹ʹȌ ȋʹǡͻͷͺȌ ͳǡͳͻͺ ͵ǡͻͺͻ ͻǡͻͻ͹ ͳǡͶͳͶ ͳǡʹ͵͸ ʹǡͺͷͳ Ͷǡ͸͹͹ ȋͶ͸͵Ȍ ȋʹͶͻȌ ȋͳͻͻȌ ȋ͵͹ͲȌ ȋ͸ͳ͸Ȍ ȋͳͺͳȌ ȋͳͷͳȌ ȋͷͳͻȌ ʹͲͳͷ ͷͺͺ ͷͺͳ ͸ͺͺ ʹ͹ʹ ȋͻʹȌ ȋͺʹȌ ȋ͵͵Ȍ ȋͷͶȌ ȋͺͺȌ ȋ͸ʹȌ ͳͳ ͻͶ ʹͻ Ͷͻ ͻͳ ͸ͻ ͵Ͳ ͻ  116-05-12 2:01PM 6 - 0 5 - 1 2

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PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 33 B ȋ—ƒ—†‹–‡†Ȍ •–Ǧ’Ž‘›‡–‡‡ˆ‹–• ͷͲ ”ƒ–‹‘ ͷ͹ ƒ ‹ƒŽ •–”—‡–• ͷ͵ • ͹ͷͳ ‹ –‘”‹ƒ “—ƒ”‡ǡ ‘–”±ƒŽǡ —±„‡ ǡ —–ƒ ˜‡•–‡–•ǡ  ȋ—–ƒȌǢ Š‡ Ȍ‹•ƒ’—„Ž‹ Ž›Ž‹•–‡† ‘’ƒ›ȋǣ Ȍ –•ȋˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•Ȍ‘ˆ‘™‡” ‹ƒ ‹ƒŽ ‰‡•ƒ ‘Ž†‹‰ȋƒ”‰‡•ƒȌǢƒ”Œ‘‹– ‘ǤǤ ‡†„›‹–•‘ƒ”†‘ˆ‹”‡ –‘”•‘ƒ›ͳʹǡʹͲͳ͸Ǥ ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ—‹–›ȌǢ ”‡ƒ–Ǧ‡•–‹ˆ‡ ‘ ‡••—”ƒ ‡‘’ƒ›ȋ ”‡ƒ–Ǧ‡•–‹ˆ‡ȌǤ ƒ†‹ƒ••‡–‹ƒ„‹Ž‹–›‡–Š‘†ȋȌǢ ”‡ƒ–Ǧ ‘Ž†‹‰ ‘’ƒ›–Šƒ–Š‘Ž†•‹–‡”‡•–•ǡ†‹”‡ –Ž›‘” † ȋ ”‹•Š ‹ˆ‡ȌǢ ‘†‘ ‹ˆ‡ •—”ƒ ‡ ‘’ƒ› ƒ–‹‘ƒŽ ‹ƒ ‹ƒŽ ‡’‘”–‹‰ –ƒ†ƒ”†• ȋ ȌǢ –ƒ–‹ƒŽŠ‘Ž†‹‰•„ƒ•‡†‹—”‘’‡Ǥ ƒ†ƒǡ –Š‡ ‹–‡† –ƒ–‡• ƒ† —”‘’‡Ǥ Š”‘—‰Š ‹–•   ǤȌ ‘–‡ͻ‘–‡ͳͲ Šƒ”‡Ǧƒ•‡†‘’‡•ƒ–‹‘‘–‡ͳͳ ƒ’‹–ƒŽƒƒ‰‡‡–‘–‡ͳʹ ‹•ƒƒ‰‡‡–‘–‡ͳ͵ ‡•‹‘Žƒ•ƒ†–Š‡”‘ ‘–‡ͳͶ  ‘‡ƒš‡•‘–‡ͳͷ –Š‡”‘’”‡Š‡•‹˜‡  ‘‡‘–‡ͳ͸ ƒ”‹‰•‡”Šƒ”‡‘–‡ͳ͹ ƒ‹”ƒŽ—‡‘ˆ ‹  Ͷͳ ‡‰‡–‡† ˆ‘ Ͷʹ ͶͶ ͷʹ ͷͳ ͷʹ     FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ͸ ͵͵ ͵Ͷ          ǡ INFORMATION  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ›‘–”‘ŽŽ‡†‘”’‘”ƒ–‹‘• ‹‘ƒ†—ƒ”›‘ˆ‹‰‹ˆ‹ ƒ– 3 3 B

d d n i . 1 v _ CORPORATE 5 0 - 1  1 - 1 6  1 0 2 _ C F P _ 2  ƒ•ƒ–ƒ†ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™‡”‡ƒ’’”‘˜ Š‡‘”’‘”ƒ–‹‘‹• ‘–”‘ŽŽ‡†„›‘™‡”‘”’‘”ƒ–‹‘‘ˆƒƒ†ƒǤ Š‡ ˆ‘ŽŽ‘™‹‰ ƒ„„”‡˜‹ƒ–‹‘• ƒ”‡ —•‡† –Š”‘—‰Š‘—– –Š‹• ”‡’‘”–ǣ ƒ ‡•–‹ˆ‡Ƭ—‹–› •—”ƒ ‡‘’ƒ›ȋ ”‡ƒ–Ǧ‡•– ‹ƒ ‹ƒŽ‘”  Ǥȋ‹ˆ‡ ‘ȌǢ  ‹ƒ ‹ƒŽ  Ǥȋ ‘”  ‹ƒ ‹ƒŽȌǢ –‡” ˜‡•–‘”• ”‘—’  Ǥ ȋ ˜‡•–‘”• ”‘—’ȌǢ ”‹•Š‹ˆ‡ ”‘—’ ‹‹–‡ ȋ‘†‘‹ˆ‡ȌǢƒ ‡œ‹‡ ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ȋƒ ‡œ‹‡ȌǢƒ” ȋƒ”Œ‘‹– ‘ȌǢ ‘™‡” ‘”’‘”ƒ–‹‘ ‘ˆ ƒƒ†ƒƒƒ†ƒ‹ˆ‡••—”ƒ ‡‘’ƒ›ȋƒƒ†ƒ‹ˆ‡ȌǢŠ‡ ”‡ƒ–Ǧ‡•–‹ˆ ȋ‘™‡”‘”’‘”ƒ–‹‘ȌǢ  NOTE ‘™‡” ‹ƒ ‹ƒŽ ‘”’‘”ƒ–‹‘ ȋ‘™‡” ‹ƒ ‹ƒŽ ‘” –Š‡ ‘”’‘”ƒ–‹‘      ȋ   ‘–‡ͳ ‘”’‘”ƒ–‡ ˆ‘”ƒ–‹‘‘–‡ʹ ƒ•‹•‘ˆ”‡•‡–ƒ– ‘–‡͵ —•‹‡•• “—‹•‹–‹‘‘–‡Ͷ  ‘—–‹‰‘Ž‹ ‹‡• ˜‡•–‡–•‘–‡ͷ ˜‡•–‡–•‹ ‘‹–Ž     ‘–‡͸ ‡‰”‡‰ƒ–‡† —†•‘–‡͹ ƒ†••‘ ‹ƒ–‡• •—”ƒ ‡ƒ† ˜‡•–‡–‘–”ƒ –‹ƒ„‹Ž‹–‹‡•‘–‡ͺ  –ƒ–‡†ƒ’‹–ƒŽ ͵ͻ ͵   ‹ ‘”’‘”ƒ–‡† ƒ† †‘‹ ‹Ž‡† ‹ ƒƒ†ƒ ͵͹ ™Š‘•‡ƒƒ†ƒǡ ʹʹ ͵Ǥ ”‡‰‹•–‡”‡† ƒ††”‡•• ‹ ͵ͺ ‘™‡” ‹ƒ ‹ƒŽ‹•ƒ†‹˜‡”•‹ˆ‹‡†‹–‡”ƒ–‹‘ƒŽƒƒ‰‡‡–ƒ†Š ͵͹ ‹†‹”‡ –Ž›ǡ ‹ ‘’ƒ‹‡• ‹ –Š‡ ˆ‹ƒ ‹ƒŽ •‡”˜‹ ‡• •‡ –‘” ‹‹˜‡•–‡–‹ƒ”‰‡•ƒ ‘Ž†‹‰ǡ‘™‡” ‹ƒ ‹ƒŽƒŽ•‘Šƒ••—„• ƒ ͶͲ Š‡—ƒ—†‹–‡† –‡”‹‘†‡•‡†‘•‘Ž‹†ƒ–‡† ‹ƒ ‹ƒŽ–ƒ–‡‡ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B33 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B34 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ –Š‡‘”’‘”ƒ–‹‘ƒ ‘—–•ˆ‘”‹–•‹˜‡•–‡–‹ƒ”Œ‘‹– ‘—•‹‰ ‘”’‘ –Š‡ ™Š‹ Š ‡–‹–›ǯ•‘’‡”ƒ–‹‰ƒ†ˆ‹ƒ ‹ƒŽ’‘Ž‹ ‹‡•ǡ™‹–Š‘—–Šƒ˜‹‰ ‘–” ‹ ‡–‹–‹‡• ƒ”‡ ••‘ ‹ƒ–‡• ƒ –‹˜‹–‹‡•Ǥ ”‡Ž‡˜ƒ– Š”‘ƒ‹ ‘†ƒ ͲȋͲͷ ͷΨ‹–”•‹ƒ”Œ‘‹– ‘ ‹ ‹–‡”‡•– ͷͲΨȌ Ȃ ‘•‹†‡”‡†–‘„‡ƒŒ‘‹–˜‡–—”‡Ǥƒ”Œ‘‹– ‘Š‘Ž†•ƒͷͷǤͷΨȋʹͲͳ ȋʹͲͳͷ ͷͲΨ ƒ Š‘Ž†• ‘”’‘”ƒ–‹‘ Š‡ ‹ ‘‡ƒ† ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡ ƒ••‘ ‹ƒ–‡•ƒ”‡”‡ ‘‰‹œ‡†‹–Š‡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ‡ƒ” ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ƒ”‡ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–› —ƒ‹‘—• ™Š‹ Š ‹ ‡–‹–‹‡• ƒ”‡ ‘”’‘”ƒ–‹‘• ‘–”‘ŽŽ‡† ‘‹–Ž› ‹ƒ ‹ƒŽǤ ‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ƒ”‡†‡”‹˜‡†ˆ”‘–Š‡‘– ˆ ƒŠ Ž™ƒ‡ ‡‹‡ˆ‘–‡ —Ž › ‹ ‘‡—ƒ—†‹–‡† †‹• Ž‘•‡† ’—„Ž‹ Ž› –Š‡ ˆ”‘ •–ƒ–‡‡–•‘ˆ‹ˆ‡ ‘ƒ†  ‹ƒ ‹ƒŽǡƒŽŽƒ•ƒ–ƒ†ˆ‘”–Š‡– †‡”‹˜‡† ƒ”‡ ˆŽ‘™• ƒ•Š ‘ˆ •–ƒ–‡‡–•‘ˆ ‘’”‡Š‡•‹˜‡‹ ‘‡ǡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ „ƒ•‹•Ǣ–Š‡ƒ‘—–••Š‘™‹–Š‡ ‘•‘Ž‹†ƒ–‡†„ƒŽƒ ‡•Š‡‡–•ǡ ‘Š‡•‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ‘™‡” ‹ƒ ‹ƒŽ‹ Ž—†‡–Š‡”‡•—Ž ƒ•‘Š” ‘’‡‡•˜‹ ƒ† Š ƒ‰•  ‡“—‹–› ‹ Šƒ‰‡• –Š‡ ƒ† ‹ ‘‡ ‘’”‡Š‡•‹˜‡ ‘–Š‡” ‡ƒ”‹‰•ǡ   Š‡‘’‡”ƒ–‹‰•—„•‹†‹ƒ”‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ”‡ǣ ‡Ž‡‡–•‘ˆ ‘–”‘ŽŽ‹•–‡†ƒ„‘˜‡Ǥ ™Š‡–Š‡”‘”‘–‹– ‘–”‘Ž•ƒ‡–‹–›‹ˆˆƒ –•ƒ† ‹” —•–ƒ ‡• ‘–”‘Žǡƒ† ‘–‹—‡–‘„‡ ‘•‘Ž‹†ƒ–‡†—–‹Ž–Š‡†ƒ–‡–Šƒ–•—–Š‡‘”’‘”ƒ–‹‘ƒ”‡ ‘•‘Ž‹†ƒ–‡†ˆ”‘–Š‡†ƒ–‡‘ˆƒ “—‹•‹–‹‘ǡ ‹˜‘Ž˜‡‡–ƒ†Šƒ•–Š‡ƒ„‹Ž‹–›–‘ƒˆˆ‡ ––Š‘•‡”‡–—”•–Š”‘—‰Š ™Š‡–Š‡‘”’‘”ƒ–‹‘Šƒ•’‘™‡”‘˜‡”–Š‡‡–‹–›ǡ‹–‹•‡š’‘•‡†ǡ     ƒˆ–‡”‡Ž‹‹ƒ–‹‘‘ˆ‹–‡” ‘’ƒ›–”ƒ•ƒ –‹‘•ƒ†„ƒŽƒ ‡•Ǥ— Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‹ Ž—†‡–Š‡ƒ ‘—–•‘ˆ‘™‡” ‹ƒ ‹ƒ BASIS ʹͲͳ ͵ͳǡ ƒ” Š ƒ– ƒ• –‡”ƒ–‹‘ƒŽ ‘—–‹‰–ƒ†ƒ”†͵ͶȂ ‹ƒ ‹ƒŽ ‘™‡” ‘ˆ •–ƒ–‡‡–• ˆ‹ƒ ‹ƒŽ Š‡ NOTE   Š›ƒ‡†† ‡‡„”͵ǡʹͳǤ Š•ˆ‹Ž ––• •Š •–ƒ–‡‡–• ˆ‹ƒ ‹ƒŽ Š‡•‡ ‘”’‘”ƒ–‹‘ǯ• ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ• ‡ ‡„‡”͵ͳǡʹͲͳͷǤ ‡†‡† ›‡ƒ” –Š‡ ™Š‹ Šƒ”‡ ‘•‹•–‡–™‹–Š ƒ••‡–‘—–‹‘–‡ʹ–‘–Š‡ ‘• E n g

0 2 ‘ Š”•”•‡–˜ŽȋͲͷ ͸ǤΨ ͵ͺǡ ”‡•’‡ –‹˜‡Ž ͵ǤͺΨǡ ƒ† ‘’ƒ‹‡•ƒ”‡ ˜‡•–‘”• ”‘—’ƒ†ƒ ‡œ‹‡Ǥ ͸ͲǤͶΨ Ȃ ȋʹͲͳͷ ”‡•’‡ –‹˜‡Ž› •Šƒ”‡•ǡ ‘‘  ‹ƒ ‹ƒŽǡƒ’—„Ž‹  ‘’ƒ›‹™Š‹ Š–Š‡‘”’‘”ƒ–‹‘ƒ† ”ƒ”‡ ”‡ƒ–Ǧ‡•–‹ˆ‡ǡ ”‡ƒ–Ǧ‡•–‹ˆ‡Ƭ—‹–›ǡ‘†‘‹ˆ‡ǡƒ •Šƒ”‡•ǡ”‡•’‡ –‹˜‡Ž›ȋʹͲͳͷȂ͸͹ǤͶΨƒ†ͶǤͲΨǡ”‡•’‡ –‹˜‡Ž›ȌǤ‹ˆ ‹ˆ‡ ‘ǡƒ’—„Ž‹  ‘’ƒ›‹™Š‹ Š–Š‡‘”’‘”ƒ–‹‘ƒ†  ‹ƒ _ B P F  OF C  34 2 _ 2  0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 PRESENTATION 1 6 BASIS - 1 1 - 0 5 _ v 1 . i  n OF d d

B  3 PRESENTATION 4  –•‘ˆ Šƒ‰‡•‹‡“—‹–›ǡ”‡•’‡ –ƒ–‡‡–•ƒ†‘–‡•–Š‡”‡ Interim  AND   SUMMARY Financial  Reporting  ‘Ž‘”Œ‘‹– ‘–”‘ŽǤ ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† OF ‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ–Š‡‘”’‘”ƒ–‹‘ˆ‘” Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǤŠ‡‘–‡•–‘ –Š‡‡“—‹–›‡–Š‘†Ǥ ‡–Š‘†Ǥ†‡”–Š‡‡“—‹–›‡–Š‘†ǡ–Š‡•Šƒ”‡‘ˆ‡– ͷȂͷͷǤͷΨȌ‡“—‹–›‹–‡”‡•–‹ƒ”‰‡•ƒǤ ‘”†‹‰Ž›ǡ ‹†‹ ƒ–‡–Š‡”‡ƒ”‡ Šƒ‰‡•–‘‘‡‘”‘”‡‘ˆ–Š‡ ‹‰•ǡ ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ ‘’”‡Š‡•‹˜‡ „‡‹‰–Š‡†ƒ–‡‘™Š‹ Š–Š‡‘”’‘”ƒ–‹‘‘„–ƒ‹• –‘ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ Š ‘–”‘Ž ‡ƒ•‡•ǤŠ‡‘”’‘”ƒ–‹‘™‹ŽŽ”‡ƒ••‡•• ‹–•—•‡‘ˆ’‘™‡”‘˜‡”–Š‡‡–‹–›Ǥ—„•‹†‹ƒ”‹‡•‘ˆ –‹˜‡Ž›Ǥ –•‘ˆ‹ˆ‡ ‘ƒ†  ‹ƒ ‹ƒŽ‘ƒ ‘•‘Ž‹†ƒ–‡† ‡•–‘–Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‘ˆ‹ˆ‡ ‘ƒ†   „•‹†‹ƒ”‹‡•ƒ”‡‡–‹–‹‡•–Š‡‘”’‘”ƒ–‹‘ ‘–”‘Ž•ǡ ƒ‹ š”‹‡•‰‹‹ƒ– Ž‡ ‘‡–Š‡ ‘˜‡” ‹ˆŽ—‡ ‡ •‹‰‹ˆ‹ ƒ– ‡š‡” ‹•‡• ”ƒ–‹‘ Žƒ†ƒŽŽ‹–••—„•‹†‹ƒ”‹‡•‘ƒ ‘•‘Ž‹†ƒ–‡†„ƒ•‹• •‘Ž‹†ƒ–‡†•–ƒ–‡‡–•‘ˆ‡ƒ”‹‰•ǡ ‘•‘Ž‹†ƒ–‡† SIGNIFICANT Šƒ‰‡•‹‡“—‹–›ƒ† ‘•‘Ž‹†ƒ–‡†•–ƒ–‡‡–• ‘•‹”“‹‡ˆ” ‡‹‹”Ž––‘ ”‡Žƒ–‹‰ †‡ ‹•‹‘• ˆ‘” ”‡“—‹”‡† ‹• ‘•‡–  ƒ†ƒ‹ˆ‡ǡ ”‹•Š‹ˆ‡ƒ†—–ƒǤ ȋ ͵ͶȌ—•‹‰–Š‡•ƒ‡ƒ ‘—–‹‰’‘Ž‹ ‹‡•ǡ ‡ ‘ǯ•ƒŒ‘”‘’‡”ƒ–‹‰•—„•‹†‹ƒ”› ‘’ƒ‹‡• ‘”Šƒ•”‹‰Š–•ǡ–‘˜ƒ”‹ƒ„Ž‡”‡–—”•ˆ”‘‹–• ͸Šƒ˜‡„‡‡’”‡’ƒ”‡†‹ƒ ‘”†ƒ ‡™‹–Š ‡‹ ‡•† ‘•Ž†–† ˆ‹ƒ ‹ƒŽ ‘•‘Ž‹†ƒ–‡† ‘†‡•‡† ‹–‡”‹  ‘ˆ–Š‡Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ† ‡ƒ–Ǧ‡•–‹ˆ‡Š‘Ž†͸ͳǤʹΨƒ†͵ǤͺΨ‘ˆ–Š‡ ƒ ‘Ž ”Ž‡ ”‘ƒ‹ Š– ‹• –Šƒ– ‘”’‘”ƒ–‹‘ ‘–”‘ŽŽ‡† Œ‘‹–Ž› ƒ ǡ ‹ƒŽŠ‘Ž†͸͹ǤͶΨƒ†ͶǤͲΨ‘ˆ–Š‡ ‘‘ —† ‡ ‡†  ‘Œ–‘™––Š‡ ™‹–Š ‘Œ— –‹‘ ‹ ”‡ƒ† „‡ ‘—Ž† ›ȌǤ ǯ•ƒŒ‘”‘’‡”ƒ–‹‰•—„•‹†‹ƒ”›  ACCOUNTING  POLICIES  116-05-12 2:01PM 6 - 0 5 - 1 2

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PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 -    6 116-05-12 2:01 PM and  35 ȋ ‘–‹—‡†Ȍ B Insurance  Recognition  POLICIES  Instruments:  Ǥ Š‡ •–ƒ†ƒ”† ™ƒ• ‘’Ž‡–‡† ‹ ACCOUNTING  Financial ‘”’‘”ƒ–‹‘ƒ†–Š‡ƒƒ‰‡‡–‘ˆ‹–• –‹˜‡†ƒ–‡•™‹–Š ͻǤ‘’ƒ‹‡•™Š‘•‡ ’‘•‡† ƒ‡†‡–• –‘ Ͷǡ † Ž‘•• ‘†‡Ž ˆ‘” ‹’ƒ‹”‡– ‘ˆ ˆ‹ƒ ‹ƒŽ Š‡‘”’‘”ƒ–‹‘ƒ†ƒƒ‰‡‡–‘ˆ‹–• †‰‡ƒ ‘—–‹‰”‡“—‹”‡‡–•‹ ͵ͻ™‹–Š Šƒ‰‡• ‹ –Š‡ •–ƒ†ƒ”†• ƒ› Šƒ˜‡ ‘ –Š‡‹” ͺ•Š‘—Ž†”‡ƒ‹ǤŠ‡‘”’‘”ƒ–‹‘ƒ†‹–• ’–‹‘• –Šƒ– ƒˆˆ‡ – –Š‡ ”‡’‘”–‡† ƒ‘—–• ‘ˆ  ‹ƒŽƒ••‡–•„‡ Žƒ••‹ˆ‹‡†ƒ–‡‹–Š‡”ƒ‘”–‹œ‡† ‘•– ǯ•”‹•ƒƒ‰‡‡–ƒ –‹˜‹–‹‡•Ǥ ‘–‡–‹ƒŽ Šƒ‰‡•’”‘’‘•‡†„›–Š‡ –‡”ƒ–‹‘ƒŽ ͳͷǤ ƒƒ‰‹‰–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•ƒ†–Š‡ ‘–”ƒ –—ƒŽ ‡ƒŽŽ‘™‡†–Š‡‘’–‹‘–‘†‡ˆ‡”–Š‡‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ ‘Ž‹ ‹‡•ƒ•†‡• ”‹„‡†‹–Š‡‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹ƒŽ SIGNIFICANT Ͷ‘” ƒ—ƒ”›ͳǡʹͲʹͳǤ ‘” ‘’ƒ‹‡•–Šƒ–†‘‘– •‘—” ‡•‘ˆ‡•–‹ƒ–‹‘— ‡”–ƒ‹–›ƒ†ƒ”‡ƒ•™Š‡”‡  •–ƒ†ƒ”†Ǥ OF  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ASSUMPTIONS   ™Š‹ Š ”‡’Žƒ ‡•  ͵ͻǡ AND  SUMMARY  AND  Instruments,  ESTIMATES  •–Š‡ƒ ‘—–‹‰™‹–Šƒ‡–‹–›   POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Financial CHANGES  JUDGMENTS, PRESENTATION   5 3 B Instruments



OF  d d n i . 1 ǡ –Š‡ —””‡– •–ƒ†ƒ”† ˆ‘” ƒ ‘—–‹‰ ˆ‘” ˆ‹ƒ ‹ƒŽ ‹•–”—‡–• v _ 5 0 - BASIS 1 –‘ƒŽŽ‡˜‹ƒ–‡–Š‡–‡’‘”ƒ”› ‘•‡“—‡ ‡•‘ˆ–Š‡†‹ˆˆ‡”‡–‡ˆˆ‡ 1 ACCOUNTING Financial -    6 SIGNIFICANT  2 1 –   0 2 9 _  OF  C ƒ••‡–•™‹–Šƒ‡š’‡ –‡†Ž‘••‘†‡ŽǤ ‰—‹†ƒ ‡–Šƒ–‘”‡ Ž‘•‡Ž›ƒŽ‹‰ Žƒ••‹ˆ‹ ƒ–‹‘ƒ†‡ƒ•—”‡‡–ǣ–Š‹•’Šƒ•‡”‡“—‹”‡•–Šƒ–ˆ‹ƒ ’ƒ‹”‡– ‡–Š‘†‘Ž‘‰›ǣ –Š‹• ’Šƒ•‡ ”‡’Žƒ ‡• –Š‡ —””‡– ‹ —””‡ ‡†‰‡ƒ ‘—–‹‰ǣ–Š‹•’Šƒ•‡”‡’Žƒ ‡•–Š‡ —””‡–”—Ž‡Ǧ„ƒ•‡†Š‡ ‘”ˆƒ‹”˜ƒŽ—‡‘–Š‡„ƒ•‹•‘ˆ–Š‡‡–‹–›ǯ•„—•‹‡••‘†‡Žˆ‘” ƒ•ŠˆŽ‘™ Šƒ”ƒ –‡”‹•–‹ •‘ˆ–Š‡ˆ‹ƒ ‹ƒŽƒ••‡–•Ǥ F

P _ 2  ‡ ‡„‡” ʹͲͳͷǡ –Š‡  ’—„Ž‹•Š‡†Contracts ƒ ‡š’‘•—”‡ †”ƒˆ– ™‹–Š ’”‘ „—•‹‡••‘†‡Ž‹•–‘’”‡†‘‹ƒ–Ž›‹••—‡‹•—”ƒ ‡ ‘–”ƒ –•ƒ” ͻ—–‹Ž–Š‡‡ƒ”Ž‹‡•–‘ˆ–Š‡ƒ†ƒ–‘”›‡ˆˆ‡ –‹˜‡†ƒ–‡‘ˆ ‹••—‡ ‹•—”ƒ ‡ ‘–”ƒ –•ǡ –Š‡ ‡ˆˆ‡ –‹˜‡•—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ–Š‡ƒ†‘’–‹‘‘ˆ–Š‹• †ƒ–‡ ‘ˆ ƒ—ƒ”› ͳǡ ʹͲͳ    FUTURE Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡• ‘–‹—‘—•Ž›‘‹–‘”–Š‡’ IFRS Š‡  ‹••—‡†  ͻǡ  NOTE USE –Š‡’”‡’ƒ”ƒ–‹‘‘ˆ–Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ǡƒƒ‰‡‡–‘ˆ– •—„•‹†‹ƒ”‹‡• ƒ”‡ ”‡“—‹”‡† –‘ ƒ‡ Œ—†‰‡–•ǡ ‡•–‹ƒ–‡• ƒ† ƒ••— ƒ••‡–•ǡŽ‹ƒ„‹Ž‹–‹‡•ǡ‡–‡ƒ”‹‰•ƒ†”‡Žƒ–‡††‹• Ž‘•—”‡•Ǥ‡› •‹‰‹ˆ‹ ƒ–Œ—†‰‡–•Šƒ˜‡„‡‡ƒ†‡„›–Š‡ƒƒ‰‡‡–‘ˆ–Š‡ •—„•‹†‹ƒ”‹‡•ƒ”‡ˆ—”–Š‡”†‡• ”‹„‡†‹–Š‡”‡Ž‡˜ƒ–ƒ ‘—–‹‰’ •–ƒ–‡‡–•ƒ†‘–‡•–Š‡”‡–‘ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲ      ‘—–‹‰–ƒ†ƒ”†•‘ƒ”†ȋ Ȍƒ†ƒƒŽ›œ‡–Š‡‡ˆˆ‡ ––Šƒ– ‘•‘Ž‹†ƒ–‡†ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•™Š‡–Š‡›„‡ ‘‡‡ˆˆ‡ –‹˜‡Ǥ Measurement –Š”‡‡•‡’ƒ”ƒ–‡’Šƒ•‡•ǣ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B35 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B36 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _  ‘– ‹• –”ƒ•ƒ –‹‘ Š‡ ʹͲͳ͸Ǥ ‘”’‘”ƒ–‹‘ǯ•ˆ‹ƒ ‹ƒŽ”‡•—Ž–•Ǥ ‘ˆ “—ƒ”–‡” –Š‹”† –Š‡ ‹ ‘’Ž‡–‡† Š ‡ ƒ Ž – Š ‹  •ƒŽ•‘ƒ‘— ‡†–Šƒ–˜‹˜ƒ ‡ƒŽ–Šƒ† Ž‘ ‡ƒŽ–Š™‹ŽŽ ‘„‹‡–‘ — ” ƒ  ‘™ ‡ ™Š‘ŽŽ›  ƒƒ†–‘‹ ”‡ƒ•‡‹–•ͶͻΨ‹–‡”‡•–‹ Ž‘ ‡ƒŽ–Š ‹ƒ ‹ƒŽ‡”˜‹ ‡ ‹†‹”‡ – ”  ‹–• ‡ – –Šƒ– Ǥ  ƒ‘— ‡† Šƒ‰”‡‡‡–•–‘ƒ “—‹”‡˜‹˜ƒ ‡ƒŽ–Š •—”ƒ ‡ ”‡Žƒ†‹‹–‡†ȋ ‡ ‹ˆ‡ ‘ – ” ʹͲͳ͸ǡ ƒ  ͻǡ • ƒ ƒ” Š  – ‹ ‘  ǡ ™ Š ‹ Š ‹ •NOTE • — „ Œ ‡ – – ‘   –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͻǤŠ‡‘”’‘”ƒ–‹‘ ƒ”‡‡š‡’–ˆ”‘–Š‡•‡”‡“—‹”‡‡–•Ǥ ”‹‰Š–Ǧ‘ˆǦ—•‡ƒ••‡–ƒ†‹–‡”‡•–‘–Š‡Ž‡ƒ•‡Ž‹ƒ„‹Ž‹–›ǤŠ‘”–Ǧ– ƒ ƒ† ƒ••‡– Ž‡ƒ•‡† ‘„Ž‹‰ƒ–‹‘–‘ƒ‡Ž‡ƒ•‡’ƒ›‡–•ˆ‘”ƒŽŽŽ‡ƒ•‡•ǤŽ‡••‡‡”‡ ‘ —†‡”Ž›‹‰ –Š‡ —•‡ –‘ ”‹‰Š– ‹–• ͳ͸ǡ ”‡’”‡•‡–‹‰  ‹••—‡†  –Š‡ ʹͲͳ͸ǡ ƒ—ƒ”›  IFRS     Š‡ ‹••—‡† ͳͷǡ IFRS NOTE   –Š‡ƒ†‘’–‹‘‘ˆ–Š‹••–ƒ†ƒ”†Ǥ Š‡•–ƒ†ƒ”†™‹ŽŽ„‡‡ˆˆ‡ –‹˜‡ ƒ—ƒ”›ͳǡʹͲͳͺǤŠ‡‘”’‘”ƒ–‹‘ ‹ ͳͷ —•–‘‡”•  ‹•—”ƒ ‡ ‘–”ƒ –•ǡŽ‡ƒ•‡•ƒ†ˆ‹ƒ ‹ƒŽ‹•–”—‡–•Ǥ –‘ ‹ ”‡“—‹”‡‡–• –”ƒ•ˆ‡””‡† ”‡ ‘‰‹–‹‘ ƒ”‡ ”‡˜‡—‡ •‡”˜‹ ‡• Š‡ ‘•‹†‡”ƒ–‹‘Ǥ ‘” ‰‘‘†• –Š‡ ƒ• ”‡˜‡—‡ —•‡‹ƒ ‘—–‹‰ˆ‘””‡˜‡—‡ƒ”‹•‹‰ˆ”‘ ‘–”ƒ –•™‹–Š —•–‘ E n g 0 2 _   B P 16 15 F  C 2  36 _   3 – – 2  0   POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016  Leases REVENUE 1 BASIS 6 - 1 BUSINESS 1 - 0 5 _ v  1  OF . i n d  d FROM



PRESENTATION

B 3 6  ACQUISITION  Revenue CONTRACTS  from   AND WITH  Contracts   SUMMARY  Leases, CUSTOMERS  with  Š ”“‹‡ƒ ‡•‡ ‘ ‡‘œƒ ‹ŠǦˆ—‡ ƒ••‡– ”‹‰Š–Ǧ‘ˆǦ—•‡ ƒ ”‡ ‘‰‹œ‡ –‘ Ž‡••‡‡ ƒ ”‡“—‹”‡• ™Š‹ Š  Customers,  OF  ‡”ȋŽ‡••–Šƒͳʹ‘–Š•Ȍƒ†Ž‘™Ǧ˜ƒŽ—‡ƒ••‡–Ž‡ƒ•‡•  SIGNIFICANT ‰‹œ‡•–Š‡”‡Žƒ–‡†‡š’‡•‡ƒ•†‡’”‡ ‹ƒ–‹‘‘–Š‡ •‹‹–‡†ȋ Ž‘ ‡ƒŽ–ŠȌ–‘ͳͲͲΨ‘™‡”•Š‹’Ǥ‹ˆ‡ ‘ ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ ƒ†‹–••—„•‹†‹ƒ”‹‡•ƒ”‡‡˜ƒŽ—ƒ–‹‰–Š‡‹’ƒ –‘ˆ ‡”•ǤŠ‡‘†‡Ž”‡“—‹”‡•ƒ‡–‹–›–‘”‡ ‘‰‹œ‡ ˜‹˜ƒ ‡ƒŽ–ŠȌǡƒ ”‹•ŠŠ‡ƒŽ–Š‹•—”ƒ ‡ ‘’ƒ›ǡ „‡ ‘‡‘‡‘ˆ–Š‡Ž‡ƒ†‹‰’”‘˜‹†‡”•‹–Š‡ ”‹•Š ‘”•‘†Žƒ‡ ‹„Ž–”’‡‡–‹–• ”‡’”‡•‡–‹‰ Ž‹ƒ„‹Ž‹–› Ž‡ƒ•‡ ‘””‡•’‘†‹‰  ”ƒ”‰Ž–”ƒ’‘ƒ•‹‡’ ‡–„‡ –‘ ‡š’‡ –‡† ‹• ƒ’’”‘˜ƒŽ•ǡ ”‡‰—Žƒ–‘”› ‘”ƒŽ ™Š‹ Š’”‘˜‹†‡•ƒ•‹‰Ž‡‘†‡Žˆ‘”‡–‹–‹‡•–‘ ‡š’‡ –‡†–‘Šƒ˜‡ƒƒ–‡”‹ƒŽ‹’ƒ –‘–Š‡ †‘‘–ƒ’’Ž›–‘–Š‡”‡˜‡—‡ƒ”‹•‹‰ˆ”‘ ƒƒ‘–ƒ”ˆ‡––‡ ‡š’‡ –‡† –Š‡ ”‡ˆŽ‡ –• –Šƒ– ƒ‘—– ƒ  † ”••„‹‹”ǡ ”•ˆǡ ”‡ƒ Š‡† ‹ˆ‡ǡ ”‹•Š •—„•‹†‹ƒ”›ǡ ”‹•Š ‡†  ACCOUNTING  POLICIES  ȋ ‘–‹—‡†Ȍ  116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM  ”  ƒ‹ ‘–ƒŽ ˜ƒŽ—‡ 37 B ƒ” Š͵ͳǡʹͲͳ͸ ‰ ʹ͸ǡ͸ͻʹ ͷʹǡͺͳͷ ” ǡ͸Ͷͷ ͺ͵ǡ͸Ͷͷ ˜ƒŽ—‡ ƒ””›‹ ASSOCIATES    AND ”  ƒ‹ ˜ƒŽ—‡  Ȃͳ͵ͳ͵ ͵Ͳǡʹ͹Ͷ ʹͻǡͲʹͻ ͵Ͳǡ͹ͳʹ ͳͺǡʹͲ͹ ͳ͸ǡͻͲͷ ͳͺǡʹͷ͵ ƒ”Œ‘‹– ‘ –Š‡ ƒ” Š͵ͳǡʹͲͳ͸  ‡ ‡„‡”͵ͳǡʹͲͳͷ   ‰ – ”‡ ‘”†‡† ƒ ‹’ƒ‹”‡– Šƒ”‰‡ ‘ˆ ʹͳ ͺǡ͵ʹͳ ͺǡ͸ͻͶ ͺǡ͸ͻͶ ˜ƒŽ—‡ ͹ǡʹ͹ʹ ͹ǡʹ͹ʹ ͹ǡʹͺͻ ͹ǡʹͺͻ ʹͺǡͻ͹ͻ ͵Ͳǡͺͷʹ ʹͻǡͶͳ͵ ͵ͳǡͲͻ͸ ƒ””›‹ •‹‰‹ˆ‹ ƒ– †‡ Ž‹‡ ‹ –Š‡ •Šƒ”‡ ’”‹ ‡Ǥ Š‡ ͳ͸ͶǡͳͲͻ ͳ͸͹ǡ͹ͳʹ ͳ͸͸ǡͲͳʹ ͳ͸ͻǡͲͶ͵ ͳͳͶǡͶͺͺ ͳͳ͸ǡʹͳͺ ͳͳͷǡ͵͹ͻ ͳͳ͸ǡ͹ʹ͹ ƒ•ˆ‡”‘ˆƒ—‹–›’‘Ž‹ ‹‡•ˆ”‘Š‡“—‹–ƒ„Ž‡ CORPORATIONS –‡† ƒ••‡–• ’”‡•‡–‡† ƒ• ˆ—†• Š‡Ž† „› ‡†‹‰  ”‡ ‘”†‡†‹‹˜‡•–‡–•Ǥ ˆ‘ŽŽ‘™•ǣ —†‡†‹•Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–•‹ ”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER CONTROLLED   JOINTLY   IN   VALUES  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER FAIR  7 AND 3  B

d d n i . 1 v _ INVESTMENTS INVESTMENTS 5 VALUES 0  - 1   1 - 5 4 6   1 0 2 _ C F P ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ͷʹͲ ͷʹͲ ͷͻ͹ ͷͻ͹ ‘ƒ•ƒ†”‡ ‡‹˜ƒ„Ž‡•Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘••‡•‹‰ƒ–‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͷ͹ͺ ͸ǡ͹ͷʹ ͷ͹ͺ ʹͺǡͶͲͳ ͸ǡ͹ͷʹ ͵ͺͶ ͸ǡ͸ͻ ͵ͺͶ Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•ȌŠƒ”‡‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡‹˜‹†‡†•ǡ†‹•–”‹„—–‹‘•ƒ†‘–Š‡” ͳʹͳ ȋͳͺͺȌ Ȃ Ȃ ͺ ȋʹͶȌ ͳʹͳ ȋͳͺͲȌ ȋʹͶȌ ˜‡•–‡–• ‡•‹‰ƒ–‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͺ͵ǡͷ͵͸ ͺ͵ǡͷ͵͸ ͺ͵ Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘••˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡‘ƒ•ƒ†”‡ ‡‹˜ƒ„Ž‡• ʹǡ͹Ͳͻ ʹǡ͹Ͳͻ ʹǡͺͳ ͳ͸ǡͶ͹͹ ͳͳǡ͹͸͸ ͳͳǡ͹͸͸ ͳʹǡͲͳͶ ͳʹǡͲͳͶ _ 2  ƒ””›‹‰˜ƒŽ—‡ǡ‡†‘ˆ’‡”‹‘† ʹǡͷͶ͵ ʹͻʹ ʹǡͺ͵ͷ ̀ͳǡͶͶ͵‹ŽŽ‹‘ ‘ ‹–• ‹˜‡•–‡– ‹ ƒˆƒ”‰‡ ‘Ž ‹‘”’‘”ƒ–‹‘ǯ••Šƒ”‡‘ˆ–Š‹• Šƒ”‰‡™ƒ•̈́͵Ͳͺ‹ŽŽ‹‘ƒ†‹•‹ Ž –† †—‡ –‘ ƒ  Š‡ ƒ””›‹‰˜ƒŽ—‡•‘ˆ–Š‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘   ƒ””›‹‰˜ƒŽ—‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” —”‹‰ –Š‡ ’‡”‹‘† ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ”‘—’‡ ”—š‡ŽŽ‡• ƒ„‡”  ʹǡ͸ͳͲ ʹͻͷ ʹǡͻͲͷ ˜‡•–‡–’”‘’‡”–‹‡•‘ƒ•–‘’‘Ž‹ ›Š‘Ž†‡”•  —”‹‰–Š‡’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ‹ˆ‡ ‘ ‘’Ž‡–‡†–Š‡–” ‹ˆ‡ ••—”ƒ ‡ ‘ ‹‡–›ǡ ƒ “—‹”‡† ‹ ʹͲͳͷǤ •‹•—”‡”•‹–Š‡‡ ‡„‡”͵ͳǡʹͲͳͷˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•ƒ”‡‘™ ƒ ”‡•—Ž–ǡ –Š‡ ”‡Žƒ  NOTE ͷǡͲͶͻ ͺǡ͵ ͷǡͲͶͻ ͷǡʹ͵͹ ͷǡʹ͵͹ ‘”–‰ƒ‰‡Ž‘ƒ• Šƒ”‡•  NOTE CARRYING ƒ””›‹‰˜ƒŽ—‡•ƒ†‡•–‹ƒ–‡†ˆƒ‹”˜ƒŽ—‡•‘ˆ‹˜‡•–‡–•ƒ”‡ƒ•   ‘†•      Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•Ǥ  0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B37 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B38 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _  ȏͳȐ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•   ȏͳȐ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•  INVESTMENTS ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ††‹–‹‘•ȋ†‡†— –‹‘•Ȍǣ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ”   INSURANCE  ‘Ǧ ‘–”‘ŽŽ‹‰—–—ƒŽˆ—†‹–‡”‡•– –Š‡”Ž‹ƒ„‹Ž‹–‹‡•  ”—‡†‹ ‘‡  ˜‡•–‡–’”‘’‡”–‹‡• —–—ƒŽˆ—†• Šƒ”‡•ƒ†—‹–•‹—‹––”—•–•     ‘”–‰ƒ‰‡Ž‘ƒ• ‘†• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•  INVESTMENTS ‹ †‡–‡”‹‡† ‹˜‡•–‡–•ǡ –Š‡ ‘ˆ †‡–ƒ‹Ž• ’”‡•‡–• ˆ‘ŽŽ‘™‹‰ Š‡ NOTE    ”‡’‘”–‹‰”‡“—‹”‡‡–•‘ˆ‡ƒ Š”‡‰‹‘‘ˆ‹ˆ‡ ‘ǯ•‘’‡”ƒ–‹‘•ǡ‘ E n š Ž—†‡•‘–Š‡”Ž‹ƒ„‹Ž‹–‹‡•ǡ‡–‘ˆ‘–Š‡”ƒ••‡–•ǡ‘ˆ̈́ͳǡͳͺ͹‹Ž  š Ž—†‡•‘–Š‡”Ž‹ƒ„‹Ž‹–‹‡•ǡ‡–‘ˆ‘–Š‡”ƒ••‡–•ǡ‘ˆ̈́ͳǡͺͶʹ‹Ž  g ‡–—”‡ƒŽ‹œ‡† ƒ’‹–ƒŽ‰ƒ‹•ȋŽ‘ ‡–”‡ƒŽ‹œ‡† ƒ’‹–ƒ ‡–‹˜‡•–‡–‹ ‘‡ ‘Ž‹ ›Š‘Ž†‡”†‡’‘•‹–• ‡‡ƒ—†‹˜••‰‡ƒ‡—† ͳȋͳȌ ȋ͹Ȍ ȋͳȌ ͳ͸ ‘Ǧ ‘–”‘ŽŽ‹‰—–—ƒŽˆ—†‹–‡”‡•– ‡––”ƒ•ˆ‡”ˆ”‘ ‡‡”ƒŽ —† ‡‡”ƒŽ —†‹˜‡•–‡–‹•‡‰”‡‰ƒ–‡†ˆ—† ‡‰”‡‰ƒ–‡†ˆ—†‹˜‡•–‡–‹ ‡‡”ƒŽ —† ‘Ž‹ ›Š‘Ž†‡”™‹–Š†”ƒ™ƒŽ• ”‡ƒŽ‹œ‡†‰ƒ‹•ȋŽ‘••‡•Ȍ†—‡–‘ Šƒ‰‡•‹ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ 0 2 _ B P F C  38 _ 6 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016  1 6 - 1  SEGREGATED AND 1 - 0 5   ON ON _ v 1  ƒ‹˜•• Ͳͳǡͷͻ͵ ͹Ͳʹ Ž‰ƒ‹•‘‹˜‡•–‡–• INVESTMENT . i n   ACCOUNT ACCOUNT d d

B 3 8 ••‹˜••ȋǡ͹Ȍ ͹ǡͺ ȋͳǡ͵͹ͶȌ ••‡•Ȍ‘‹˜‡•–‡–•   OF OF  FUNDS  CONTRACTS   SEGREGATED SEGREGATED   ON   ȏͳȐ ȏͳȐ Ž‹‘Ǥ Ž‹‘Ǥ FUND FUND  ʹǡͺ͸ǡ͵ͳǡ͸ͳͻͻǡ͵ͺͳ ͳͳǡ͹͸ͷ ͸͹ǡ͵͵͵ ͳͻͶǡͺͶ͵ ͳʹͲǡʹͺ͵ ͳͳǡͷͶͳ ͸ʹǡͻͺͷ ͳʹͲǡ͵ͳ͹   ACCOUNT   ‡ ͷ͸ͺʹǡ͵͵ͳ ȋͷǡ͸ͺͺȌ –‡• POLICYHOLDERS POLICYHOLDERS  OF  SEGREGATED ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—†’‘Ž‹ ›Š‘Ž†‡”•ǣ ƒ ”ƒ ™––‡ ‡‡ƒ– •–ƒ–—–‘”› ”‡Ž‡˜ƒ– –Š‡ ™‹–Š ƒ ‘”†ƒ ‡  ‡‡ ‡‡ ‡‡ ‘–ƒŽ ‡˜‡Ž͵ ‘–ƒŽ ‡˜‡Žʹ ‡˜‡Ž͵ ‡˜‡Žͳ ‡˜‡Žʹ ‡˜‡Žͳ   ȋ„›ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›Ž‡˜‡ŽȌ  FUND  ͳͻʹ ͳͳǡ͸ͷ͸ ͳͳǡͻͻʹ  POLICYHOLDERS ͻǡͲͳͺ͹ǡͶ͵͵ ͳͻ͵ǡͲͲͳ ͳ͹Ͷǡͻ͸͸ ͳͻͺǡͳͻͶ ͻǡͲͳͻͺǡͳͻͶ ͳͻ͵ǡͲͲͳ ͳͻͺǡͳͺͳ ͳͻ͵ǡͷ͵ͳ ƒ” Š͵ͳ Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ Ͳ͸͹ ͳͲǡͺ͵ͻ ͷͲǡͳͲͳ ͺͲǡͺʹͻ ͳͲǡ͸Ͷ͹ Ͷʹǡͳ͸Ͳ ͶͻǡͲʹʹ ͹͸ǡͺʹʹ ͶʹǡͶ͵͵ ͷͶ͸ȋͶǡ͹ͶʹȌ ȋͷǡͶͶ͸Ȍ ͷͳ͵ͳʹǡͶ͸͹ ȋͷǡͳͻ͵Ȍ ʹ͵Ͳȋͳǡ͹ͷͻȌ ȋʹǡ͵ͷͲȌ ǡʹͷǡͲͳ͸ ͷǡͻʹ͹ ǡͻͳǡ͵ͻͲ ͳǡ͵ͻ͸ ʹǡͷͻ͸ ʹǡ͸ͳͷ Ͳ͸ʹͲͳͷ ʹͲͳ͸ ʹͲͳ͸  ͷʹ͵ͳ ͸ͷͻ ʹ͵ͺʹ ͶʹͶ ʹͳͳ ʹͷ ͸ ͸   ǡ ‡‡„”͵ͳǡʹͲͳͷ ‡ ‡„‡”  ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳ ʹͲͳͷ ͳͲ  ǡ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM ǡ  – – ʹͲͳͷ 39 B ‡ ‡„‡”͵ͳ ””‘„‘”ƒ–‹‘ ‘ˆ ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ ǡ  –‘–Š‡ —””‡–’‡”‹‘† Ȃ ȋͳȌ ͸͸ ͻͶͶ ʹͲͳ͸ ȋͳ͸ͻȌ ȋ͸Ͳ͹Ȍ ƒ••‡–• ‡ ƒ••‡–• ‡ ͳͳǡͷͶͳ ͳͳǡ͹͸ͷ ͳͳǡ͹͸ͷ ͳͲǡ͵ͻͲ ƒ” Š͵ͳ ‡‹•—”ƒ ‡ ‡‹•—”ƒ ‡  › › ”‘•• ”‘•• Ž‹ƒ„‹Ž‹– Ž‹ƒ„‹Ž‹– ͳ͸Ͳǡ͹Ͷͷ ͷǡͳ͵ͳ ͳͷͷǡ͸ͳͶ ͳͷ͹ǡͶ͸ͺ ͷǡͳͶͶ ͳͷʹǡ͵ʹͶ ˜‡•–‡–• ‘ ƒ ‘—– ‘ˆ •‡‰”‡‰ƒ–‡† ˆ—† ‘Ž†‹‰• ˜ƒŽ—‡† ƒ– ̈́ʹǡ͸Ͷ͸‹ŽŽ‹‘ Šƒ˜‡ „‡‡ LIABILITIES  ”‡† ˆ”‘ ‡˜‡Ž ͳ –‘ ‡˜‡Ž ʹ ƒ– ‡ ‡„‡” ͵ͳǡ ‹Žƒ„Ž‡ ˆ”‘ ‘”ƒŽ ƒ”‡– ’”‹ ‹‰ •‘—” ‡• ƒ† –Š‡ƒƒ‰‡‡–‘ˆ–Š‡•‡•‡‰”‡‰ƒ–‡†ˆ—†”‹••ǡ ‹• —••‹‘ƒ†ƒŽ›•‹•‘ˆ–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ ƒ••‡–•Ǥ ‡–‡”‹‡ˆƒ‹”˜ƒŽ—‡ǣ ’”‹ ‡•‹ƒ –‹˜‡ƒ”‡–•Ǥ  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ‘‡ ȋͳʹͳȌ ͳǡͲ͵ͻ CONTRACT ƒ„‹Ž‹–›‘ˆ‹’—–•‹˜ƒŽ—ƒ–‹‘‡–Š‘†‘Ž‘‰‹‡•ƒ•‡˜‹†‡ ‡†„› ‘ •ˆ‡”•‹–‘‡˜‡Ž͵†—”‹‰–Š‡’‡”‹‘†‡†‡†ƒ” Š͵ͳǡʹͲͳ͸Ǥ   ‹‰•‘ˆ–Š‡‘”’‘”ƒ–‹‘Ǥ  –ƒš Ž‹ƒ„‹Ž‹–‹‡• –‘ ‹˜‡•–‡– ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡• –‘ ‘ˆ‘” LIABILITIES  ȋ ‘–‹—‡†Ȍ  ‹œ‡†‡˜‡Ž͵‹’—–•–‘† INVESTMENT   CONTRACT  FUNDS  AND  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  ʹǡʹͷ͵ Ȃ ʹǡʹͷ͵ ȏͳȐ  ȏͳȐ 9 3 B

INVESTMENT  d d n i . 1 v AND _ INSURANCE SEGREGATED  5 0 - 1   1 - 7 6 6   1 0 2 _ C F ƒ”‡–’”‹ ‡•™‹–Š—Ž–‹’Ž‡’”‹ ‹‰˜‡†‘”•ǤŠ‡”‡™‡”‡‘–”ƒ ’”‡•‡–ƒ–‹‘ǤŠ‡”‡ Žƒ••‹ˆ‹ ƒ–‹‘Šƒ†‘‹’ƒ –‘–Š‡‡–‡ƒ” P ƒŽ‡• ”ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ —” Šƒ•‡• ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ‹ Ž—†‡†‹•‡‰”‡‰ƒ–‡†ˆ—†‹˜‡•–‡–‹  ‹ˆ‡ ‘ ‘””‡ –‡† –Š‡ Žƒ••‹ˆ‹ ƒ–‹‘ ‘ˆ ̈́͹͵‹ŽŽ‹‘ ‘ˆ †‡ˆ‡””‡†  ”ƒ•ˆ‡”• ‘—– ‘ˆ ‡˜‡Ž ͵ ƒ”‡ †—‡ ’”‹ƒ”‹Ž› –‘ ‹ ”‡ƒ•‡† ‘„•‡”˜ _ 2  ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ȏͳȐ   •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•    •—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ͳͷͷǡ͵ͷʹ ʹǡͳͳ͸ ͷǡͳͶͶ ͳͷͲǡʹͲͺ Ȃ ͳͷͺǡͶͻʹ ʹǡͳͳ͸ ͷǡͳ͵ͳ ͳͷ͵ǡ͵͸ͳ  ‘”ˆ—”–Š‡”†‡–ƒ‹Ž•‘‹ˆ‡ ‘ǯ•”‹•ƒ†‰—ƒ”ƒ–‡‡‡š’‘•—”‡ƒ† ”‡ˆ‡”–‘–Š‡‹ˆ‡ ‘•‡ –‹‘‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ•ƒƒ‰‡‡–ǯ• ƒ†ˆ‘”–Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ  NOTE INSURANCE   ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ȏͳȐ  NOTE —”‹‰ –Š‡ ˆ‹”•– –Š”‡‡ ‘–Š• ‘ˆ–”ƒ•ˆ‡””‡† ˆ”‘ ʹͲͳ͸ǡ ‡˜‡Žʹ ‡”–ƒ‹ –‘ ˆ‘”‡‹‰ ‡˜‡Žͳ ȋ̈́Ͷͳʹ‹ŽŽ‹‘ ‡“—‹–› ™‡”‡ Š –”ƒ•ˆ‡” ʹͲͳͷȌǡ„ƒ•‡†‘‹ˆ‡ ‘ǯ•ƒ„‹Ž‹–›–‘—–‹Ž‹œ‡‘„•‡”˜ƒ„Ž‡ǡ“—‘–‡† ‡˜‡Ž ʹ ƒ••‡–• ‹ Ž—†‡ –Š‘•‡ ƒ••‡–• ™Š‡”‡ ˆƒ‹” ˜ƒŽ—‡™Š‡”‡‹ˆ‡ ‘†‘‡•‘–Šƒ˜‡˜‹•‹„‹Ž‹–›–Š”‘—‰Š–‘–Š‡—†‡”Ž›‹‰ ‹• ‘– ƒ˜ƒ Š‡ ˆ‘ŽŽ‘™‹‰ ’”‡•‡–• ƒ††‹–‹‘ƒŽ’‘Ž‹ ›Š‘Ž†‡”•ˆ‘”™Š‹ Š‹ˆ‡ ‘Šƒ•—–‹Ž ‹ˆ‘”ƒ–‹‘ ƒ„‘—– ‹ˆ‡ ‘ǯ• ‹     0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B39 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B40 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ƒƒ ǡ‡†‘‡‹† ͹ͳ͵ǡʹ͵ͺǡ͸ͺ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† Š†˜†”–ˆ” Š”‹‹‰ ǡ͸ǡͺ”‡ Š”• ™ •Šƒ”‡• ̈́ͲǤͳͶͶͳʹͷ’‡”•Šƒ”‡‹ ƒ•Š†‹˜‹†‡†•’ƒ›ƒ„Ž‡“—ƒ”–‡”Ž›Ǥ  ‡”‹‡• ͺǡͻ͸ͷǡͶͺͷ ”‡ƒ‹‹‰ –Š‡ ˆ‘” ”ƒ–‡ †‹˜‹†‡† Š‡ ’ƒ›ƒ„Ž‡“—ƒ”–‡”Ž›ƒ–ƒˆŽ ƒƒ ǡ„‰‹‰‘‡” ͹ͳ͵ǡʹ͵ͺǡ͸ͺ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ”  –‘̈́ͲǤ͵ͻʹͷ’‡”•Šƒ”‡ȋ̈́ͲǤ͵͹ʹͷ’‡”•Šƒ”‡‹ʹͲͳͷȌǤ ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ†‹˜‹†‡†•†‡ Žƒ”‡†‘ ƒ•Š ‘•‹†‡”ƒ–‹‘‘ˆ̈́Ͷͻ‹ŽŽ‹‘ȌǤ •Šƒ”‡• ‘‘ ‘ ʹͲͳ͸ǡ ͵ͳǡ ’Ž‘›‡‡–‘ ’–‹‘ŽƒȋͳǡͷͳͷǡͲͲͲ ‘‘•Šƒ”‡•‹••—‡†ˆ‘” ƒ” Š ‡†‡† ‘–Š• –Š”‡‡ –Š‡ —”‹‰ Common ”‡ˆ‡””‡†Šƒ”‡•ǡ‡”‹‡•ǤŠ‡‡”‹‡• ‹”•–”‡ˆ‡””‡†•Šƒ”‡• ‹”•–”‡ˆ‡””‡†Šƒ”‡•ǡ‡”‹‡•™‡”‡ ‘˜‡”–‡†ǡ‘ƒ‘‡Ǧˆ‘”Ǧ‘  ‡„”—ƒ”›ͳǡʹͲͳ͸ǡʹǡʹ͵Ͷǡͷͳͷ‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ•‘—–•–ƒ†‹‰ First  Common  First        ISSUED •Šƒ”‡•Ǥ •‡”‹‡•Ǣƒ—Ž‹‹–‡†—„‡”‘ˆ‡ ‘†”‡ˆ‡””‡†Šƒ”‡•ǡ‹••—ƒ„Ž Š‡ƒ—–Š‘”‹œ‡† ƒ’‹–ƒŽ‘ˆ‘™‡” ‹ƒ ‹ƒŽ ‘•‹•–•‘ˆƒ—Ž‹‹ AUTHORIZED NOTE    E n g ‡‹• ǡ͵ǡͳ ͸ Ȃ Ȃ ʹͺͲ ͳͷͲ ʹͲͲ ͳͳǡʹͲͲǡͲͲͲ ͷ͸ ʹͲͲ ʹͷͲ ͸ǡͲͲͲǡͲͲͲ ʹʹͶ ͺǡͲͲͲǡͲͲͲ ͳͷͲ ͳͷͲ ͳͷͲ ͺǡͲͲͲǡͲͲͲ ͳͲǡͲͲͲǡͲͲͲ ʹǡʹ͵Ͷǡͷͳͷ ʹͲͲ ʹͲͲ ͺǡͻ͸ͷǡͶͺͷ ͸ǡͲͲͲǡͲͲͲ ͳͷͲ ʹͷͲ ʹͲͲ ͸ǡͲͲͲǡͲͲͲ ͸ǡͲͲͲǡͲͲͲ ͳͲͲ ͺǡͲͲͲǡͲͲͲ ͳͷͲ ͺǡͲͲͲǡͲͲͲ ͳͷͲ ͸ǡͲͲͲǡͲͲͲ ͳͲǡͲͲͲǡͲͲͲ ͺǡͲͲͲǡͲͲͲ ʹͲͲ ͶǡͲͲͲǡͲͲͲ ͸ǡͲͲͲǡͲͲͲ ͳͷͲ ͸ǡͲͲͲǡͲͲͲ ͳͲͲ ͺǡͲͲͲǡͲͲͲ ͸ǡͲͲͲǡͲͲͲ ͶǡͲͲͲǡͲͲͲ ‡”‹‡• ‡”‹‡• ‡”‹‡• ‡”‹‡• ‡”‹‡• ‡”‹‡• ‡”‹‡•  ‡”‹‡•  ‡”‹‡•  ‡”‹‡• ‡”‹‡• ‡”‹‡• •—†—†”‘–‘Ž ͳͷͷͲͲ͸ͳ ͳǡͷͳͷǡͲͲͲ Ȃ Ȃ ••—‡†—†‡”–‘ ’–‹‘Žƒ ‡‹• ǡͲǡͲ ͲͺͲͲͲͲʹͲͲ ͵ͲͲ ͺǡͲͲͲǡͲͲͲ ͳʹǡͲͲͲǡͲͲͲ ʹͲͲ ͵ͲͲ ͺǡͲͲͲǡͲͲͲ ͳʹǡͲͲͲǡͲͲͲ ‡”‹‡• ‡”‹‡• 0 2  _ Preferred B  P Preferred F C  40   _  AND 8 Shares 2 ͲͲͲͲͲʹͲ ͲͲͲͲͲʹͷͲ ͳͲǡͲͲͲǡͲͲͲ ʹͷͲ ͳͲǡͲͲͲǡͲͲͲ   0 Shares  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 1 STATED  1 OUTSTANDING  - Shares 0   5 _  Shares v  1 . i n d  d (perpetual)

B  4  CAPITAL 0 ‘ƒ–‹‰”ƒ–‡‡“—ƒŽ–‘–Š‡͵Ǧ‘–Š ‘˜‡”     ƒ”‡‡–‹–Ž‡†–‘ƒƒ—ƒŽ‘Ǧ ——Žƒ–‹˜‡†‹˜‹†‡†ǡ ‡–‘ˆƒƒ†ƒ”‡ƒ•—”›‹ŽŽ”ƒ–‡’Ž—•ͳǤ͸ͲΨǤ ‡„ƒ•‹•ǡ‹–‘‘Ǧ——Žƒ–‹˜‡ Ž‘ƒ–‹‰ƒ–‡ ‹”•– –‡†—„‡”‘ˆ ‹”•–”‡ˆ‡””‡†Šƒ”‡•ǡ‹••—ƒ„Ž‡‹ ‡‹•‡”‹‡•Ǣƒ†ƒ—Ž‹‹–‡†—„‡”‘ˆ ‘‘ ͳͳǡʹͲͲǡͲͲͲ‘Ǧ——Žƒ–‹˜‡ͷǦ›‡ƒ”ƒ–‡‡•‡– –Š‡‘”’‘”ƒ–‹‘ǯ• ‘‘•Šƒ”‡•ƒ‘—–‡† ƒ•”‡•‡––‘ƒƒ—ƒŽˆ‹š‡†”ƒ–‡‘ˆʹǤ͵ͳΨ‘” –Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷˆ‘”ƒ ‘ˆ•Šƒ”‡• —„‡ ™‡”‡‹••—‡†—†‡”–Š‡‘”’‘”ƒ–‹‘ǯ• Ͳ͹ͳ͹͵͸Ͳ͹Ͷ͵ ͹ͳͳǡ͹ʹ͵ǡ͸ͺͲ ͺͲͶ Ͳ Ͳ͹͵ʹͺ͸ͲͺͲͶ ͹ͳ͵ǡʹ͵ͺǡ͸ͺͲ ͺͲͶ Ͳ ”  ƒ ͳͲ͸‡ ‡„‡”͵ͳǡʹͲͳͷ ͵ͳǡʹͲͳ͸ ƒ” Š ǡͺʹǡͷͺͲ ʹǡͷͺͲ ƒ’‹–ƒ –ƒ–‡ ̈́ † Ž     ‘ˆ•Šƒ”‡• —„‡ ”  ƒ’‹–ƒ –ƒ–‡ ̈́ † Ž 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM ǡ  ͵ͲǤͶ͵ ʹͲͳͷ 41 B ‡š‡” ‹•‡’”‹ ‡ ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ ǡ ƒ” Š͵ͳ ͻ ͻ ͶǤʹΨ ͶǤͷΨ ͳǤͳΨ ͳǤʹΨ ʹͲͳ͸ ʹͲǤʹΨ ͳͻǤͺΨ ƒ” Š͵ͳ ̈́̈́ ‡š‡” ‹•‡’”‹ ‡ ’–‹‘• ƒ” Š͵ͳǡʹͲͳ͸ ƒ” Š͵ͳǡʹͲͳͷ ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ •–‹‰ ’‡”‹‘†Ǥ ‘” –Š‡ –Š”‡‡ ‘–Š• ‡†‡† ‘”’‘”ƒ–‹‘ Šƒ˜‡ ‡•–ƒ„Ž‹•Š‡† •Šƒ”‡Ǧ„ƒ•‡† ”ƒ–‡†ͳǡͷͻ͸ǡͶ͹͸‘’–‹‘•ȋͳǡʹ͵Ͳǡͳ͵͸‘’–‹‘• ‹• ”‡ ‘”†‡† ‹ ‘’‡”ƒ–‹‰ ƒ† ƒ†‹‹•–”ƒ–‹˜‡ ‹‘Žƒƒ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ƒ†ʹͲͳͷǡƒ† Š‡ˆƒ‹”˜ƒŽ—‡‘ˆ–Š‡‘’–‹‘•‘”–Š‡ˆƒ‹”˜ƒŽ—‡‘ˆ ––‘™Š‹ Š‘’–‹‘•ƒ›„‡‰”ƒ–‡†–‘ ‡”–ƒ‹  ‘’–‹‘• ‰”ƒ–‡† „› –Š‡ ‘”’‘”ƒ–‹‘ ƒ† ‹–• ‘‘•Šƒ”‡•ƒ”‡”‡•‡”˜‡†ˆ‘”‹••—ƒ ‡Ǥ Š‘Ž‡•‘’–‹‘Ǧ’”‹ ‹‰‘†‡Ž™‹–Š–Š‡ˆ‘ŽŽ‘™‹‰ ͻ͵ʹ ͵ʹǤͲ͸ ͺǡ͸͵ͲǡͶ͹͹ ͵ͳǤͳͺ ˆ”‘̈́ʹͷǤͲ͹–‘̈́͵ͺǤ͵ͷǤ ’–‹‘• FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  COMPENSATION  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  BASED  Ǧ 1 4 B

d PLAN d  n expense i  . 1 v _ SHARE 5 0 - 1  1 - 9 6 OPTION  1  0 2 _ C Ǧˆ”‡‡‹–‡”‡•–”ƒ–‡ F  P ”ƒ–‡†š‡” ‹•‡† ͳǡͷͻ͸ǡͶ͹͸ Ȃ ͵ͳǤͻͲ ͳǡʹ͵Ͳǡͳ͵͸ Ȃ ͵ͺǤͲͷ ȋͳǡͷͳͷǡͲͲͲȌ ͵ʹǤʹͶ _ 2 ƒ” Š͵ͳǡ ʹͲͳ͸ǡ –‘–ƒŽ ‘’‡•ƒ–‹‘ ‡š’‡•‡ ”‡Žƒ–‹‰ –‘ –Š‡ •–‘ •—„•‹†‹ƒ”‹‡• ƒ‘—–‡† –‘ ̈́ͳͺ‹ŽŽ‹‘ ȋ̈́ͳͺ‹ŽŽ‹‘ ‹ ʹͲͳͷȌ‡š’‡•‡•‹–Š‡•–ƒ–‡‡–•‘ˆ‡ƒ”‹‰•Ǥ ƒ†  š’‡ –‡†Ž‹ˆ‡ȋ›‡ƒ”•Ȍ ƒ‹”˜ƒŽ—‡’‡”•–‘ ‘’–‹‘ȋ̈́Ȁ‘’–‹‘Ȍ‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡‡š‡” ‹•‡’”‹ ‡ȋ̈́Ȁ‘’–‹‘Ȍ ͵ͳǤͻͲ ͵Ǥͳʹ ͵ͺǤͲͷ ͵Ǥ͵ͷ ‘ˆˆ‹ ‡”• ƒ† ‡’Ž‘›‡‡•Ǥ  ‘’‡•ƒ–‹‘’Žƒ•Ǥ‘’‡•ƒ–‹‘‡š’‡•‡‹•”‡ ‘”†‡†„ƒ•‡†‘– ƒ††‹–‹‘ǡ ‘–Š‡” •—„•‹†‹ƒ”‹‡• ‘ˆ–Š‡ ‡“—‹–› –Š‡ ‹˜‡•–‡–• ƒ– –Š‡ ‰”ƒ– †ƒ–‡ǡ ƒ‘”–‹œ‡† ‘˜‡” –Š‡ ˜‡  ‹ˆ‡ ‘ƒ† Šƒ˜‡ƒŽ•‘‡•–ƒ„Ž‹•Š‡†•–‘ ‘’–‹‘’Žƒ•’—”•—ƒ —–•–ƒ†‹‰ƒ–‡†‘ˆ’‡”‹‘†—”‹‰–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ‘™‡” ‹ƒ ‹ƒŽ‰ ‹ʹͲͳͷȌ—†‡”‹–•’Ž‘›‡‡–‘ ’–‹‘ŽƒǤ Š‡ˆƒ‹”˜ƒŽ—‡‘ˆ–Š‡•‡‘’–‹‘•™ƒ•‡•–‹ƒ–‡†—•‹‰–Š‡Žƒ Ǧ ™‡‹‰Š–‡†Ǧƒ˜‡”ƒ‰‡ƒ••—’–‹‘•ǣ ͳͲǡ͵͹ͲǡͶͲͺ ‹˜‹†‡†›‹‡Ž† š’‡ –‡†˜‘Žƒ–‹Ž‹–› ͵ʹǤͲͶ‹• ͺǡ͵Ͷͷǡ͸ͳ͵ ͵ʹǤͲͲ   —–•–ƒ†‹‰ƒ–„‡‰‹‹‰‘ˆ›‡ƒ”’–‹‘•‡š‡” ‹•ƒ„Ž‡ƒ–‡†‘ˆ’‡”‹‘† Š‡‡š‡” ‹•‡’”‹ ‡‘ˆ–Š‡ͳͲǡ͵͹ͲǡͶͲͺ‘—–•–ƒ†‹‰‘’–‹‘•”ƒ‰‡• Compensation ͺǡ͹͹͵ǡ Ͷǡ͹Ͷ͵ǡ͹ͻͶ ͵ͲǤ͵ʹ ͵ǡͻͻͲǡͷͶͳ  NOTE STOCK †‡”‘™‡” ‹ƒ ‹ƒŽǯ•’Ž‘›‡‡–‘ ’–‹‘Žƒǡͳʹǡ͵ͷ͸ǡ͸ͲͲ •—ƒ”›‘ˆ–Š‡•–ƒ–—•‘ˆ‘™‡” ‹ƒ ‹ƒŽǯ•’Ž‘›‡‡–‘ ’– Šƒ‰‡•†—”‹‰–Š‡’‡”‹‘†•‡†‡†‘–Š‘•‡†ƒ–‡•‹•ƒ•ˆ‘ŽŽ‘™•ǣ      0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B41 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B42 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ƒƒ‰‡–Š‡‹” ƒ’ ‡”–ƒ‹‘ˆ‹–•ƒ‹•—„•‹†‹ƒ”‹‡•ƒ† ǯ••—„•‹†‹ƒ”‹‡•ƒ”‡•—„Š‡‘”’‘”ƒ–‹‘‹–•‡Žˆ‹•‘–•—„Œ‡ ––‘‡š–‡”ƒŽŽ›‹’‘•‡†”‡‰ –Š‡‹””‡•’‡ –‹˜‡ ‘’ƒ‹‡•ǯ ƒ’‹–ƒŽƒƒ‰‡‡–Ǥ ’”‡ˆ‡””‡† ’‡”’‡–—ƒŽ †‹”‡ –‘”•‘ˆ–Š‡’—„Ž‹ •—„•‹†‹ƒ”‹‡•ǡƒ•™‡ŽŽƒ•–Š‘•‡‘ˆƒ”‰‡ •Šƒ”‡•ǡ ‘‘ ‘ˆ ”‡’—” Šƒ•‡ ƒ† ”‡†‡’–‹‘ ‘‹–‘”‹‰–Š‡ ƒ’‹–ƒŽ’ŽƒǤ  ƒ  ƒ ‰ ‡  ‡ ‹  ˆ – ‡ ‘ ˆ ‘  ‹ Š ˆ ƒ ‡ • ‡ ‘ • ‹ – • ” ƒ ‡ „ • Ž ’ ‹ ‘ •  Š • ‡ ‹ „ † Ž ’ ‡ ‘ ˆ Ž ‘ ‹ ” ‡ ‹ • – ‡ ƒ • „ ƒ Ž  ‹ † • ’ Š ‹ ”  ‘ ‰  ‡ ƒ † ’ — ‹ – ” ƒ ‡ Ž •  † ƒ ‡ • ‹ ‰  ‡ † – ‘ ‹ † ‡  ’Žƒ•ǤŠ‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘”‡˜‹‡™•ƒ†ƒ’ ‹•”‡•’‘•‹„Ž‡ˆ‘”‡•–ƒ„Ž‹•Š‹‰ ƒ’‹–ƒŽƒƒ‰‡‡–’”‘ ‡†—”‡•ƒŠ‡‘ƒ”†‘ˆ‹”‡ –‘”•‘ˆ–Š‡‘”’‘”ƒ–‹‘‹•”‡•’‘•‹„Ž‡ˆ‘” ƒ Š‡‘”’‘”ƒ–‹‘ ’‘•‹–‹‘•‹Ž‘‰Ǧ–‡”‹˜‡•–‡–•ƒ• ƒ’‹–ƒŽǤ ‘ˆ ’‡”’‡–—ƒŽ •‘—” ‡ ‘ˆ ‘•–Ǧ‡ˆˆ‡ –‹˜‡ ƒ† Š‡‘”’‘”ƒ ‘•‹•–• ’‡”ƒ‡– ‹–‡”‡•–•Ǥ ‘”’‘”ƒ–‹‘ ‘Ǧ ‘–”‘ŽŽ‹‰ ƒ† –Š‡ ‡“—‹–› ‘ˆ •Šƒ”‡Š‘Ž†‡”•ǯ •–”— –—”‡ ƒ’‹–ƒŽ Š‡ •Šƒ”‡Š‘Ž†‡”•ǡ”‡–—” ƒ’‹–ƒŽ–‘•Šƒ”‡Š‘Ž†‡”•‘”‹••—‡ ƒ’‹–ƒŽǤ ‘”†‡”–‘ƒ‹–ƒ‹‘”ƒ†Œ—•–‹–• ƒ’‹–ƒŽ•–”— –—”‡ǡ–Š‡‘”’‘ Š‡‘”’‘”ƒ–‹‘ƒƒ‰‡•‹–• ƒ’‹–ƒŽ–ƒ‹‰‹–‘ ‘•‹†‡”ƒ–‹‘–    ’”‹ƒ”›‘„Œ‡ –‹˜‡•‘ˆ‹ˆ‡ ‘ǯ• ƒ’‹–ƒŽ ‹ˆ‡ ‘ƒƒ‰‡•‹–• ƒ’‹–ƒŽ‘„‘–Šƒ ‘•‘Ž‹†ƒ–‡†„ƒ•‹•ƒ•™‡ŽŽ LIFECO        •ƒŠ‘Ž†‹‰ ‘’ƒ›ǡ‘™‡” ‹ƒ ‹ƒŽǯ•‘„Œ‡ –‹˜‡•‹ƒƒ‰‹‰ NOTE   E n g

0 2 ”‹••ƒ†•–”ƒ–‡‰‹ ’Žƒ•Ǥ –‘’”‘˜‹†‡ƒ‡ˆˆ‹ ‹‡– ƒ’‹–ƒŽ•–”— –—”‡–‘ƒš‹‹œ‡•Šƒ”‡Š‘Ž† ƒ† –‘ƒ‹–ƒ‹•–”‘‰ ”‡†‹–ƒ†ˆ‹ƒ ‹ƒŽ•–”‡‰–Š”ƒ–‹‰•‘ˆ‹ˆ ‹‹—”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•‹–Š‡Œ—”‹•†‹ –‹‘•‹ –‘ƒ‹–ƒ‹–Š‡ ƒ’‹–ƒŽ‹œƒ–‹‘‘ˆ‹–•”‡‰—Žƒ–‡†‘’‡”ƒ–‹‰•—„•‹ ƒ‹–ƒ‹ƒƒ’’”‘’”‹ƒ–‡ ”‡†‹–”ƒ–‹‰–‘‡•—”‡•–ƒ„Ž‡ƒ ‡••– ‘’ƒ‹‡•ƒ†‘–Š‡”‹˜‡•–‡–•ƒ•‘’’‘”–—‹–‹‡•’”‡•‡–Ǣƒ† ’”‘˜‹†‡•—ˆˆ‹ ‹‡–ˆ‹ƒ ‹ƒŽˆŽ‡š‹„‹Ž‹–›–‘’—”•—‡‹–•‰”‘™–Š• ’”‘˜‹†‡ƒ––”ƒ –‹˜‡Ž‘‰Ǧ–‡””‡–—”•–‘•Šƒ”‡Š‘Ž†‡”•‘ˆ–Š‡‘” _ B P F C  42  _ 10 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - CAPITAL 0 5 _ v 1 ‹–ƒŽƒ•†‡• ”‹„‡†„‡Ž‘™Ǥ . i n d d

B 4 2  MANAGEMENT ƒƒ‰‡‡–•–”ƒ–‡‰›ƒ”‡ǣ ™‡ŽŽƒ• ƒ•Šƒ†ˆ‹š‡†‹  •ƒƒ† ”‘—’‡”—š‡ŽŽ‡•ƒ„‡”–ǡƒ”‡”‡•’‘•‹„Ž‡ˆ‘” ”ƒ–‹‘ƒ›ƒ†Œ—•––Š‡ƒ‘—–‘ˆ†‹˜‹†‡†•’ƒ‹†–‘ ‘‡•‡ —”‹–‹‡•ˆ‘”Ž‹“—‹†‹–›’—”’‘•‡•Ǥ ƒ•ƒ––Š‡‹†‹˜‹†—ƒŽ‘’‡”ƒ–‹‰•—„•‹†‹ƒ”›Ž‡˜‡ŽǤŠ‡ ’‹–ƒŽƒƒ‰‡‡–Ǥƒƒ‰‡‡–‘ˆ–Š‡‘”’‘”ƒ–‹‘ —Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•Ǥ ‘™‡˜‡”ǡ‹ˆ‡ ‘ƒ† Š‡”‹• Šƒ”ƒ –‡”‹•–‹ •ƒ†Ž‹“—‹†‹–›‘ˆ‹–•Š‘Ž†‹‰•Ǥ  –”ƒ–‡‰›–‘‹˜‡•–‘ƒ–‹‡Ž›„ƒ•‹•‹‹–•‘’‡”ƒ–‹‰ Œ‡ ––‘”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•ƒ†–Š‡› ‹–• ƒ’‹–ƒŽƒ”‡–‘ǣ ’”‘˜‡• ƒ’‹–ƒŽ–”ƒ•ƒ –‹‘••— Šƒ•–Š‡‹••—ƒ ‡ǡ †ˆ‘”‹’Ž‡‡–‹‰ƒ†‘‹–‘”‹‰‹–• ƒ’‹–ƒŽ ‘–Š‡ ƒ’‹–ƒŽƒ”‡–•Ǥ ‡ ‘‡•—”‹‰•–ƒ„Ž‡ƒ ‡••–‘ ƒ’‹–ƒŽƒ”‡–•Ǣ †‹ƒ”‹‡•ƒ–ƒŽ‡˜‡Ž–Šƒ–™‹ŽŽ‡š ‡‡†–Š‡”‡Ž‡˜ƒ– ’‘”ƒ–‹‘Ǣ ‹ ‹™’”‡—Ž ”ˆ”‡•ƒ‡ƒƒ ƒ• •Šƒ”‡• ’”‡ˆ‡””‡† ’‡”’‡–—ƒŽ ˜‹‡™• –‹‘ ƒ‡‡– ” †”• ‘‹’‡‡–ƒ† ‹’Ž‡‡–‹‰ ˆ‘” ’”‘ ‡†—”‡• ƒ‰‡‡– Š‘Ž†• •— Š ƒ• ƒ† ‹˜‡•–‘” Ž‘‰Ǧ–‡” ƒ ‹•  ‡”˜ƒŽ—‡‹–Š‡ ‘–‡š–‘ˆ‹ˆ‡ ‘ǯ•‘’‡”ƒ–‹‘ƒŽ ™Š‹ Š–Š‡›‘’‡”ƒ–‡Ǣ ‹›ƒ—‡ ”’”ƒŽ ƒ‡‹Ž ”‹••Ǥ ƒ–‡”‹ƒŽ ƒŽŽ ”‡’‘”– ƒ† ‡ƒ•—”‡ –‹ˆ›ǡ ”ˆ”‡•ƒ‡ǡ ‡‡–”• ‘‘ †‡„‡–—”‡•ǡ •Šƒ”‡•ǡ ’”‡ˆ‡””‡† Š”• †„—‡Ǥ Š„ƒ†‘ˆ „‘ƒ”†• Š‡ †‡„‡–—”‡•Ǥ ƒ† •Šƒ”‡•  116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 43 B ȋƒƒ†ƒȌƒ†–Š‡‹” Act  Companies  Insurance —• ‡“—‹”‡‡–• ȋȌǤ • ƒ– ƒ” Š ͵ͳǡ —–‹‘• Šƒ• ‡•–ƒ„Ž‹•Š‡† ƒ ƒ’‹–ƒŽ ƒ†‡“—ƒ ›  ‡‡–•ǡ ™‘”‹‰ ƒ’‹–ƒŽ ‡‡†• ƒ† „—•‹‡•• •–”ƒ–‡‰‹ ‘„Œ‡ –‹˜‡•Ǥ ‡„‡”͵ͳǡʹͲͳͷȌǤ  ”‡‰—Žƒ”Ž› ƒ••‡••‡• ‹–• ƒ’‹–ƒŽ ƒƒ‰‡‡–  „ƒ•‡† ‘ ‡‹–Š‡” ™‘”‹‰ ƒ’‹–ƒŽǡ Ž‹“—‹†‹–› ‘” ‡•‡”˜‹‰–Š‡“—ƒŽ‹–›‘ˆ‹–•ˆ‹ƒ ‹ƒŽ’‘•‹–‹‘„› ‡–—”•™Š‹Ž‡‡•—”‹‰–Šƒ– ‹• ƒ’‹–ƒŽ‹œ‡†‹ ˆ—†ƒƒ‰‡”•ƒ†ƒ–”—•– ‘’ƒ›ǤŠ‡•‡  ”‡“—‹”‡†–‘ ‘’Ž›™‹–ŠŽ‘ ƒŽ ƒ’‹–ƒŽ‘”•‘Ž˜‡ › ”ƒ–‹‘•–‘•—’’‘”–™‘”‹‰ ƒ’‹–ƒŽ”‡“—‹”‡‡–•ǡ ‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“—‹”‡‡–•Ǥ —‹”‡‡–•‹ Ž—†‡‹˜‡•–‡–†‡ƒŽ‡”•ǡ—–—ƒŽˆ—†  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ȋ ‘–‹—‡†Ȍ  •—’’‘”–• ”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ ”‡“—‹”  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER MANAGEMENT  3 4 B

d d  n i . 1 CAPITAL v _ 5  0 - 1 1 - 10 6  1 0 2 _ FINANCIAL  C F P _ 2 •—„•‹†‹ƒ”‹‡•ǡ ‘™ ƒ• –Š‡ ‹‹— ‘–‹—‹‰ ƒ’‹–ƒŽ ƒ† —”’Ž ʹͲͳ͸ǡ–Š‡”ƒ–‹‘ˆ‘” ”‡ƒ–Ǧ‡•–‹ˆ‡™ƒ•ʹ͵͸Ψȋʹ͵ͺΨƒ–‡ –Š‡”ˆ‘”‡‹‰‘’‡”ƒ–‹‘•ƒ†ˆ‘”‡‹‰•—„•‹†‹ƒ”‹‡•‘ˆ‹ˆ‡ ‘ƒ”‡ ”‡“—‹”‡‡–•‹–Š‡‹””‡•’‡ –‹˜‡Œ—”‹•†‹ –‹‘•Ǥ •Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›Ǥ •—„•‹†‹ƒ”‹‡•Šƒ˜‡ ‘’Ž‹‡†™‹–ŠƒŽŽ”  ‡š’ƒ•‹‘Ǥ ǯ• ƒ’‹–ƒŽƒƒ‰‡‡–’”ƒ –‹ ‡•ƒ”‡ˆ‘ —•‡†‘’” ƒ‹–ƒ‹‹‰ ƒ •‘Ž‹† ƒ’‹–ƒŽ „ƒ•‡ ƒ† ƒ’”ƒ –‹ ‡•‹”‡•’‘•‡–‘ Šƒ‰‹‰‡ ‘‘‹  ‘†‹–‹‘•Ǥ •–”‘‰ „ƒŽƒ ‡ •Š‡‡–Ǥ ǯ• ƒ’‹–ƒŽ‹•’”‹ƒ”‹Ž›—–‹Ž‹œ‡†‹‹–•‘‰‘‹‰„—•‹‡••‘’‡ IGM ǯ• ƒ’‹–ƒŽƒƒ‰‡‡–‘„Œ‡ –‹˜‡‹•–‘ƒš‹‹œ‡•Šƒ”‡Š‘Ž†‡””  NOTE ƒƒ†ƒǡ–Š‡ˆˆ‹ ‡‘ˆ–Š‡—’‡”‹–‡†‡–‘ˆ ‹ƒ ‹ƒŽ •–‹– ‡ƒ•—”‡‡–ˆ‘”Ž‹ˆ‡‹•—”ƒ ‡ ‘’ƒ‹‡•‹ ‘”’‘”ƒ–‡†—†‡”–Š‡     ƒ ƒ‡” ™Š‹ Š ƒ’’”‘’”‹ƒ–‡Ž› †‡ƒŽ‡”•ǡ‡š‡’–ƒ”‡–†‡ƒŽ‡”•ǡ’‘”–ˆ‘Ž‹‘ƒƒ‰‡”•ǡ‹˜‡•–‡– •—„•‹†‹ƒ”‹‡• ƒ”‡ ”‡“—‹”‡† –‘ ƒ‹–ƒ‹ ‹‹— Ž‡˜‡Ž• ‘ˆ ƒ’‹–ƒŽ Ž‘‰Ǧ–‡”‹˜‡•–‡–•ƒ†‡„› ǡ„—•‹‡••‡š’ƒ•‹‘ƒ†‘–Š‡” Š‡ •—„•‹†‹ƒ”‹‡•–Šƒ–ƒ”‡•—„Œ‡ ––‘”‡‰—Žƒ–‘”› ƒ’‹–ƒŽ”‡“ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B43 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B44 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ˜ƒŽ—ƒ–‹‘†ƒ–‡Ǥ –—ƒŽ”‡•—Ž–• ƒ†‹ˆˆ‡”•‹‰‹ˆ‹ ƒ–Ž›ˆ”‘–Š ”‹••ǡ•— Šƒ•–Š‡•‡•‹–‹˜‹–›†—‡–‘•’‡ ‹ˆ‹  Šƒ‰‡•‹‹–‡”Š‹•‘–‡–‘–Š‡ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•‹ Ž—†‡•‡•–‹ƒ–‡•‘ˆ•‡ ‘”’‘”ƒ–‹‘ ƒ‘–’”‘˜‹†‡ƒ••—”ƒ ‡–Šƒ––Š‡ƒ –—ƒŽ‹’ƒ –‘ ˆ‘”–Š‡”‡•’‡ –‹˜‡ˆƒ –‘”•„ƒ•‡†‘–Š‡ƒ••—’–‹‘•‘—–Ž‹‡†ƒ„ ‘”–Š‡•‡”‡ƒ•‘•ǡ–Š‡•‡•‹–‹˜‹–‹‡••Š‘—Ž†‘Ž›„‡˜‹‡™‡†ƒ•† ”‡ ‡‹˜‡†ˆ”‘‹–••—„•‹†‹ƒ”‹‡•ƒ†Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹ ‘™‡” ‹ƒ ‹ƒŽ‹•ƒŠ‘Ž†‹‰ ‘’ƒ›Ǥ••— Šǡ ‘”’‘”ƒ–‡ ƒ•ŠˆPOWER              ‹ ‹•–”—‡–•ƒ”‡Ž‹“—‹†‹–›”‹•ǡ ”‡†‹–”‹•ƒ†ƒ”‡–”‹•Ǥ ˆ‹ƒ ‹ƒŽ ™‹–Š ƒ••‘ ‹ƒ–‡† ”‹•• ‹–‹‰ƒ–‡ ƒ† ‘‹–‘” ‡ƒ•—”‡ǡ Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ƒ”‹‡•Šƒ˜‡‡•–ƒ„Ž‹•Š‡†’‘Ž‹ ‹‡•ǡ NOTE   Liquidity ‘™‡” ‹ƒ ‹ƒŽǯ•ƒƒ‰‡‡–‘ˆŽ‹“—‹† •—„•‹†‹ƒ”‹‡•Ǥ ‹  ’ ƒ ” –’‡”‹‘†‘ˆ–‹‡Ǥ ˆ”‡“—‹”‡†ǡ–Š‡ƒ„‹Ž‹–›‘ˆ‘™‡” ‹ƒ ‹ƒŽ–‘ — ’ ‘  ’ ”–‘‡‡–‹–•‘’‡”ƒ–‹‰‡š’‡•‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ƒ†’ƒ›‡–‘ ‡ ˜ ƒ ‹ Ž ‹Š‡‘”’‘”ƒ–‹‘”‡‰—Žƒ”Ž›”‡˜‹‡™•‹–•Ž‹“—‹†‹–›”‡“—‹”‡‡–•ƒ  ‰  ƒ ”  ‡ –  †‹˜‹†‡†•‹•†‡’‡†‡–—’‘”‡ ‡‹’–‘ˆ†‹˜‹†‡†•ˆ”‘–Š‡‹”‘™ ‘  † ‹ – ‹Š‡ƒ„‹Ž‹–›‘ˆ‹ˆ‡ ‘ǡ ƒ†ƒ”Œ‘‹– ‘ǡ™Š‹ Šƒ”‡ƒŽ•‘Š‘Ž†‹ ‘  • ƒ • ™‡š’‡•‡•ǡˆ‹ƒ ‹‰ Šƒ”‰‡•ǡ‹ ‘‡–ƒš‡•ƒ†’ƒ›‡–‘ˆ†‹˜‹†‡ ‡ Ž Ž ƒ • – Š ‡ „ — • ‹  ‡ E n g

0 2 ”‹•ƒ†‡“—‹–›’”‹ ‡”‹•Ǥ ”‡•—Ž–‘ˆ Šƒ‰‡•‹ƒ”‡–ˆƒ –‘”•Ǥƒ”‡–ˆƒ –‘”•‹ Ž—†‡–Š” ƒ”‡–”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘”ˆ—–—”‡ ƒ•ŠˆŽ‘™ x x ‘„Ž‹‰ƒ–‹‘•ƒ•–Š‡› ‘‡†—‡Ǥ x –Š‡‰‡‡”ƒŽŽ‹‹–ƒ–‹‘•‘ˆ‹–‡”ƒŽ‘†‡Ž•Ǥ ‹–‡”ƒ –‹‘•ƒ‘‰–Š‡•‡ˆƒ –‘”•ƒ†ƒ••—’–‹‘•™Š‡‘”‡–Šƒ Šƒ‰‡•‹„—•‹‡••‹šǡ‡ˆˆ ƒ –—ƒŽ‡š’‡”‹‡ ‡†‹ˆˆ‡”‹‰ˆ”‘–Š‡ƒ••—’–‹‘•Ǣ Šƒ‰‡•‹ƒ –—ƒ”‹ƒŽǡ‹˜‡•–‡–”‡–—”ƒ†ˆ—–—”‡‹˜‡•–‡–ƒ ƒ†‹–‡”‡•–”ƒ–‡• ‡ƒ”‹‘• ‘•‹†‡”‡†Ǣ ƒ••‡••‡–‘ˆ–Š‡ ‹” —•–ƒ ‡•–Šƒ–Ž‡†–‘–Š‡• ‡ƒ”‹‘ƒ›Ž‡ –”ƒ•ƒ –‹‘ˆƒ‹Ž•–‘‡‡–‹–•‘„Ž‹‰ƒ–‹‘•Ǥ ”‡†‹–”‹•‹•–Š‡’‘–‡–‹ƒŽˆ‘”ˆ‹ƒ ‹ƒŽŽ‘••–‘–Š‡‘”’‘”ƒ–‹“—‹†‹–›”‹•‹•–Š‡”‹•–Šƒ––Š‡‘”’‘”ƒ–‹‘ƒ†‹–••—„•‹†‹ _ B P

F C  44 _  11 –‡”‡•–”ƒ–‡”‹•‹•–Š‡”‹•–Šƒ––Š‡ˆƒ‹”˜ƒŽ—‡‘ˆˆ—–—”‡ ƒ ƒ”‡–•Ǥ “—‹–›’”‹ ‡”‹•‹•–Š‡— ‡”–ƒ‹–›ƒ••‘ ‹ƒ–‡†™‹–Š–Š‡˜ƒŽ—ƒ– –‹‡ƒ–†‹ˆˆ‡”‡–ˆ‘”‡‹‰‡š Šƒ‰‡Ž‡˜‡Ž•™Š‡ƒ†˜‡”•‡ Šƒ‰‡• ƒ† •—„•‹†‹ƒ”‹‡• ƒ••‘ ‹ƒ–‡•‘’‡”ƒ–‹‰‹†‹ˆˆ‡”‡– —””‡ ‹‡•ƒ† ‘˜‡”–‹‰‘ ‹–• ‘”’‘”ƒ–‹‘ǡ –Š‡ –‘ ”‡Žƒ–‡• ”‹• —””‡ › „‡ ƒ—•‡‘ˆ Šƒ‰‡•‹ƒ”‡–‹–‡”‡•–”ƒ–‡•Ǥ FINANCIAL 2 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 risk 1 6  - 1 1 - RISK 0  5 _ v 1 . i n d  d 

MANAGEMENT

B 4 4 ‡ –‹˜‡–ƒš”ƒ–‡•ƒ†‘–Š‡”ƒ”‡–ˆ  ‹–›”‹•Šƒ•‘– Šƒ‰‡† ƒ””ƒ‰‡ƒ††‹–‹‘ƒŽˆ‹ƒ ‹‰‹–Š‡ˆ—–—”‡™‹ŽŽ†‡’‡† ‡•‡‡•–‹ƒ–‡•ˆ‘”ƒ˜ƒ”‹‡–›‘ˆ”‡ƒ•‘•ǡ‹ Ž—†‹‰ǣ ‡•–”ƒ–‡Ž‡˜‡Ž•’”‘Œ‡ –‡†ƒ†ƒ”‡–’”‹ ‡•ƒ•ƒ––Š‡ ‹”‡ –‹‘ƒŽ‡•–‹ƒ–‡•‘ˆ–Š‡—†‡”Ž›‹‰•‡•‹–‹˜‹–‹‡• ‘ǡƒ†‹ ‘‡ˆ”‘‹˜‡•–‡–•ǡŽ‡••‘’‡”ƒ–‹‰ ‰ ‘’ƒ‹‡•ǡ–‘‡‡––Š‡‹”‘„Ž‹‰ƒ–‹‘•ƒ†’ƒ› •‹–‹˜‹–‹‡•ƒ†”‹•‡š’‘•—”‡‡ƒ•—”‡•ˆ‘” ‡”–ƒ‹ ‰—‹†‡Ž‹‡•ƒ†’”‘ ‡†—”‡•†‡•‹‰‡†–‘‹†‡–‹ˆ›ǡ ‡–‡ƒ”‹‰•™‹ŽŽ„‡ƒ•‹†‹ ƒ–‡†Ǥ ƒ–‡”‹ƒŽŽ›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ †•‡‡•–‘ƒ‹–ƒ‹ƒ•—ˆˆ‹ ‹‡–Ž‡˜‡Ž‘ˆŽ‹“—‹†‹–› •—„•‹†‹ƒ”‹‡•Ǥ ‘˜‡Ǥ ‹˜‡–Š‡ƒ–—”‡‘ˆ–Š‡•‡ ƒŽ —Žƒ–‹‘•ǡ–Š‡ †•–‘‹–• ‘‘ƒ†’”‡ˆ‡””‡†•Šƒ”‡Š‘Ž†‡”•Ǥ •”•‡ ‡”•• ‡ƒ‡–ˆ‹ƒ ‹ƒŽ –‘ ”‡Žƒ–‡† ”‹•• ‡› Š‡ •–”—‡–•Ǥ ƒ –‘”•Ǣ •ŠˆŽ‘™•‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ ƒ”‹‡•™‹ŽŽ‘–„‡ƒ„Ž‡–‘‡‡–ƒŽŽ ƒ•Š‘—–ˆŽ‘™ ‘ƒ† –•„‹‹”‡‹ƒ ‘‡’”›  ƒ ‹ ‘—–‡”’ƒ”–› ƒ ‹ˆ •—„•‹†‹ƒ”‹‡• ‹–• ƒ† ‹‘ •‘ˆƒˆ‹ƒ ‹ƒŽ‹•–”—‡–™‹ŽŽˆŽ— –—ƒ–‡ƒ•ƒ ’‡‡”† Š”†˜†• ‘ƒ ”‡ƒ•‘ƒ„Ž‡ ƒ ˆ‘” †‹˜‹†‡†• •Šƒ”‡ ’”‡ˆ‡””‡† ˆ –‹˜‹–›ƒ••—’–‹‘•Ǣ ‡‡–›’‡•‘ˆ”‹••ǣ —””‡ ›”‹•ǡ‹–‡”‡•–”ƒ–‡ • ‡ˆ”ƒ ‘™” ‹ƒ ƒƒ† ‹–• ƒ† ‹ƒ ‹ƒŽ ‘™‡” ‘ˆ ’‡”ˆ‘”ƒ ‡ •• Ž ‘ ™ • ƒ ” ‡ ’ ” ‹  ‹ ’ ƒ Ž Ž ›  ƒ † ‡ — ’ ‘ ˆ † ‹ ˜ ‹ † ‡  † •  ƒ†–‘ Šƒ‰‡•‹ȋ”‡Ȍ‹˜‡•–‡–ƒ’’”‘ƒ Š‡• ‹‘‘ˆƒ••‡–•ƒ”‹•‹‰ˆ”‘ Šƒ‰‡•‹‡“—‹–› ‘‡ Šƒ‰‡•Ǣƒ† ‹ˆ‘”‡‹‰ —””‡ ›‡š Šƒ‰‡”ƒ–‡•‘ —”Ǥ Ǧƒƒ†‹ƒ‡ƒ”‹‰•ƒ–†‹ˆˆ‡”‡–’‘‹–•‹ –Œ‹–› ‘–‘Ž† ‘’”–‘• ƒ† ‘”’‘”ƒ–‹‘• ‘–”‘ŽŽ‡† Œ‘‹–Ž› ‹–• 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 45 B ‹”‡– Šƒ”‰‡ ‘ˆ ̀ͳǡͶͶ͵‹ŽŽ‹‘ ‘ ‹–• ‡ –‘ –‹‡ ‡–‡” ‹–‘ —””‡ ›ǦŠ‡†‰‹‰ Š‡†‰‡• ‡˜‡ ‹ˆ •’‡ ‹ˆ‹  Š‡†‰‡ ƒ ‘—–‹‰ Ǥ ƒ”‰‡•ƒ ‹–•‡Žˆ ‹• ‡š’‘•‡† –‘ —””‡ › ”‹• –‹Ž”‡ƒŽ‹œ‡†ǤŠ‡•‡‹˜‡•–‡–•ƒ”‡”‡˜‹‡™‡†  –Š‡ ”‡†‹– ”ƒ–‹‰• ‘ˆ ‹–• ‘—–‡”’ƒ”–‹‡•Ǥ Š‡ –‘ˆŽ— –—ƒ–‹‘•‹‡š Šƒ‰‡”ƒ–‡•Ǥ ‘”†‡”–‘ ” Š ͵ͳǡ ʹͲͳ͸ǡ ƒ’’”‘š‹ƒ–‡Ž› ͺͺΨ ‘ˆ ‘™‡” •™‹–Šƒƒ†‹ƒ Šƒ”–‡”‡†„ƒ•ƒ†„ƒ•‹ ‘—–‡”’ƒ”–‹‡• –Šƒ– ƒ”‡ Š‹‰ŠŽ› ”ƒ–‡† ˆ‹ƒ ‹ƒŽ ‰‡”‹•ƒ•ƒ”‡•—Ž–‘ˆƒ”Œ‘‹– ‘ǯ•‹˜‡•–‡–‹ ƒ–‡†–‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡˆ‹š‡†‹ ‘‡  ”‡†‹–”ƒ–‹‰•‘ˆ†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡– ˆƒ‹’ƒ‹”‡–‹˜ƒŽ—‡Ǥ ‘”–Š‡–Š”‡‡‘–Š• –‡•–ƒ„Ž‹•Š‡•‰—‹†‡Ž‹‡•™Š‹ Š’”‘˜‹†‡‡š’‘•—”‡ † ƒ•Š‡“—‹˜ƒŽ‡–•ǡˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ƒ† ‹•–Š‡‹” ƒ””›‹‰˜ƒŽ—‡Ǥ ‹ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ ‘•‹•–’”‹ƒ”‹Ž›‘ˆ ‹•ǤŠ‡‘”’‘”ƒ–‹‘‹–‹‰ƒ–‡• ”‡†‹–”‹•‘‹–• †•Š‘”–Ǧ–‡”•‡ —”‹–‹‡•‘ˆǡ‘”‰—ƒ”ƒ–‡‡†„›ǡ–Š‡ ‹ ‘‡•‡ —”‹–‹‡•ǡ‘™‡” ‹ƒ ‹ƒŽƒ›Š‘Ž† ƒ•Š ‘”‡‹‰ —””‡ ›–”ƒ•Žƒ–‹‘‰ƒ‹•ƒ†Ž‘••‡•ˆ”‘ ‡„‡”͵ͳǡʹͲͳͷǤ ƒ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡Ǣ—”‡ƒŽ‹œ‡†‰ƒ‹•ƒ†Ž‘••‡•‘  ‡–”ƒ–‹‘Ž‹‹–•Ǥ ‡š’‘•—”‡–‘‡“—‹–›’”‹ ‡”‹•Ǥ ‡š’‘•—”‡–‘‹–‡”‡•–”ƒ–‡”‹•Ǥ ‡•™‡”‡†‡‘‹ƒ–‡†‹ƒƒ†‹ƒ†‘ŽŽƒ”•Ǥ ”‹•ƒƒ‰‡‡–‰—‹†‡Ž‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ƒ† FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  Šƒ˜‡•‹‰‹ˆ‹ ƒ– Šƒ˜‡•‹‰‹ˆ‹ ƒ– ‡†ƒ–‡”‹ƒŽŽ›•‹ ‡‡ ȋ ‘–‹—‡†Ȍ  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER   MANAGEMENT 5  4 B 

risk

risk 

 d d n i . risk 1  RISK v rate  _  5 price    0 - 1 1 - 11 risk 6   1 risk  0 2 _ Interest Equity Currency C F

P _ 2 ‹˜‡•–‡–‹ƒˆƒ”‰‡ ‘Ž ‹–†ȋ‘–‡ͷȌǤ ‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•†‘‘– ƒ”‰‡•ƒ‹†‹”‡ –Ž›Š‘Ž†••—„•–ƒ–‹ƒŽ‹˜‡•–‡–• Žƒ••‹ˆ‹‡†ƒ• –Š‡•‡‹˜‡•–‡–•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡— ’‡”‹‘†‹ ƒŽŽ›–‘†‡–‡”‹‡™Š‡–Š‡”–Š‡”‡‹•‘„Œ‡ –‹˜‡‡˜‹†‡ ‡‘ ‡†‡† ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ”‘—’‡ ”—š‡ŽŽ‡• ƒ„‡”– ”‡ ‘”†‡† ƒ ‹’ƒ ‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•†‘‘– c) ƒƒ‰‹‰‹–•‘™ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ƒ•™‡ŽŽƒ•ˆ‹š‡† „ƒŽƒ ‡•†‡‘‹ƒ–‡†‹ˆ‘”‡‹‰ —””‡ ‹‡•ƒ†–Š—•„‡‡š’‘•‡† ’”‘–‡ – ƒ‰ƒ‹•– •— Š ˆŽ— –—ƒ–‹‘•ǡ–”ƒ•ƒ –‹‘• ‘™‡” ™‹–Š Š‹‰ŠŽ› ‹ƒ ‹ƒŽ ”ƒ–‡† ƒ› ˆ‹ƒ ‹ƒŽ ‹ƒ ‹ƒŽǯ• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ƒ†ˆ‹š‡†‹ ‘‡•‡ —”‹–‹ ˆ”‘ ‹•–‹–—–‹‘•Ǥ • –‹ ƒ– ƒ ‘™‡” ‹ƒ ‹ƒŽ‹•‡š’‘•‡†–Š”‘—‰Šƒ”Œ‘‹– ‘–‘ˆ‘”‡‹‰‡š Šƒ ƒ”‰‡•ƒǡ ƒ ‘’ƒ› ™Š‘•‡ ˆ— –‹‘ƒŽ —””‡ › ‹•–Š”‘—‰Š‹–••—„•‹†‹ƒ”›™Š‘•‡ˆ— –‹‘ƒŽ —””‡ ›‹•–Š‡‡—”‘Ǥ –Š‡ ™‹•• ˆ”ƒ ƒ”‰‡•ƒƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ b) †‡„‡–—”‡•Ǥ a) Market ‘™‡” ‹ƒ ‹ƒŽǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ”‡ ‘’”‹•‡†‘ˆ ƒ•Šƒ  NOTE Credit ‹š‡† ‹ ‘‡ •‡ —”‹–‹‡• ƒ† †‡”‹˜ƒ–‹˜‡• ƒ”‡ •—„Œ‡ – –‘ ”‡†‹– ” ˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•„›ƒ†Š‡”‹‰–‘ƒ‹˜‡•–‡–’‘Ž‹ ›–Šƒ Ž‹‹–•„›†‡ˆ‹‹‰ƒ†‹••‹„Ž‡•‡ —”‹–‹‡•ǡ‹‹—”ƒ–‹‰ƒ† ‘ ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ǡ™Š‹ Šƒ”‡‹ Ž—†‡†‹‹˜‡•–‡–•ƒ† „‘†•ǡ„ƒ‡”•ǯƒ ‡’–ƒ ‡•ƒ†Š‹‰ŠŽ›Ž‹“—‹†–‡’‘”ƒ”›†‡’‘•‹– Œ—”‹•†‹ –‹‘•™Š‡”‡‘™‡” ‹ƒ ‹ƒŽ‘’‡”ƒ–‡•ƒ•™‡ŽŽƒ•„‘†•ƒ     ƒƒ†‹ƒ ‘” ǤǤ ‰‘˜‡”‡–•Ǥ Š‡ ‘”’‘”ƒ–‹‘ ”‡‰—Žƒ”Ž› ”‡˜‹‡™• ƒš‹—‡š’‘•—”‡–‘ ”‡†‹–”‹•‘–Š‡•‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ‡”‹˜ƒ–‹˜‡• ‘–‹—‡–‘„‡—•‡†‘ƒ„ƒ•‹• ‘•‹•–‡–™‹–Š–Š‡ ƒ”‡ ‘‹–‘”‡† „› –Š‡ ‘”’‘”ƒ–‹‘”‡“—‹”‡‡–•ƒ”‡‘–‡–ǤŠ‡‘”’‘”ƒ–‹‘”‡‰—Žƒ”Ž›”‡˜‹‡™•–Š‡ ˆ‘” ‡ˆˆ‡ –‹˜‡‡•• ƒ• ‡ ‘‘‹  ‘—–‡”’ƒ”–‹‡•Ǥ ‡”‹˜ƒ–‹˜‡ ‘–”ƒ –• ƒ”‡ ‘˜‡”Ǧ–Š‡Ǧ ‘—–‡” ™‹–Š ‹•–‹–—–‹‘•Ǥ ‘™‡” ‹ƒ ‹ƒŽǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡‡–‘ˆ ”‡†‹–”‹•”‡Ž •‡ —”‹–‹‡•ƒ††‡”‹˜ƒ–‹˜‡•Šƒ˜‡‘– Šƒ‰ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B45 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B46 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _  a) Market – •‹‹Žƒ”‹†—•–”‹‡•Ǥ‘•‹‰‹ˆ‹ ƒ– Šƒ‰‡•Šƒ˜‡‘ —””‡†ˆ”‘– –Šƒ– ‹ Šƒ”ƒ –‡”‹•–‹ • ”‹• ”‡†‹– •‹‹Žƒ” Šƒ˜‡ –Šƒ– †‡„–‘”• •‹‰Ž‡ ƒ –‘ ‡š’‘•—”‡• ˆ”‘ ƒ”‹•‡ ”‹• ”‡†‹– ‘ˆ ‘ ‡–”ƒ–‹‘• Credit       Š‡ˆ‘ŽŽ‘™‹‰’‘Ž‹ ‹‡•ƒ†’”‘ ‡†—”‡•ƒ”‡‹’Žƒ ‡–‘ƒƒ‰‡Ž‹ Liquidity ƒ’’”‘ƒ Š–‘”‹•ƒƒ‰‡‡–Šƒ•‘– Šƒ‰‡†•‹‰‹ˆ‹ ƒ–Ž›•‹ ‡ Š‡”‹• ‘‹––‡‡‘ˆ–Š‡„‘ƒ”†‘ˆ†‹”‡ –‘”•‘ˆ‹ˆ‡ ‘‹•”‡•’‘ LIFECO NOTE   ’”‡•‡–‡†„‡Ž‘™ǣ ’– ƒ‡‹’ • ‹‡‘• ‘ƒ‡—–Ǥ ‘”•‘†Žǡ ‹ˆ‡ ‘””‡•’‘†‹‰Ž›ǡ ‡“—‹–›Ǥ ‘‹–‘”‡†„›”ƒ–‹‰ƒ‰‡ ‹‡•ƒ”‡ƒŽ•‘‹’ƒ –‡†Ǥ –‘–ƒŽ ‹ˆ‡ ‘ǯ• ‹’ƒ –• ”ƒ–‡• •’‘– –”‡‰–Š‡‹‰‘”™‡ƒ‡‹‰‘ˆ–Š‡ƒƒ†‹ƒ†‘ŽŽƒ”•’‘–”ƒ–‡ ‘ˆ‘”‡‹‰‘’‡”ƒ–‹‘•ǡ‡–‘ˆ”‡Žƒ–‡†Š‡†‰‹‰ƒ –‹˜‹–‹‡•ƒ†–ƒš‡ ƒƒ†‹ƒ†‘ŽŽƒ”•Ǥ ƒ ‘”†ƒ ‡™‹–Š ǡˆ‘”‡‹‰ —””‡ ›–”ƒ ‹ˆ‡ ‘Šƒ•‡–‹˜‡•–‡–•‹ˆ‘”‡‹‰‘’‡”ƒ–‹‘•Ǥ ƒ††‹–‹‘ǡ ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ–‡• ƒ‡š’‘•‡‹ˆ‡ ‘–‘–Š‡”‹•‘ˆˆ‘”‡‹‰ ‘”–Š‡ƒ••‡–•„ƒ ‹‰‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž E n g

0 2 Šƒ‰‡‹‡–‡ƒ”‹‰•Ǥ ‘Ǧ’ƒ †‡ ”‡ƒ•‡ –‘ ‡š’‡ –‡† ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ†–Š‡‹”•—’’‘”–‹‰ƒ••‡–•„›ƒ’’”‘š‹ƒ–‡ „‡ ™‘—Ž† —””‡ ‹‡• ˆ‘”‡‹‰ ƒ‰ƒ‹•– •ƒ‡ƒ‘—–ǡ”‡•—Ž–‹‰‹ƒ‹ƒ–‡”‹ƒŽ Šƒ‰‡–‘‡–‡ƒ”‹‰•Ǥ —””‡ ‹ ˆ‘”‡‹‰ ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ† ƒ‰ƒ‹•– †‘ŽŽƒ” ƒƒ†‹ƒ –Š‡ ‘ˆ ™‡ƒ‡‹‰ ͳͲΨ  Ž‹‡•‘ˆ ”‡†‹–‘”˜‹ƒ ƒ’‹–ƒŽƒ”‡––”ƒ•ƒ –‹‘•Ǥ‹ˆ‡ ‘ƒ‹ ‘’’‘•‹–‡Ž‹“—‹†‹–›”‡“—‹”‡‡–•ƒ––Š‡Š‘Ž†‹‰ ‘’ƒ›Ǥ††‹–‹‘ ƒ  ƒ ‰‡ƒ”‡†ƒ†”‡“—‹”‡†›‹‡Ž†•ǡ–‘‡•—”‡ ‘•‹•–‡ ›„‡–™‡‡’‘Ž‹ ‡  ‡  –‹ˆ‡ ‘ Ž‘•‡Ž›ƒƒ‰‡•‘’‡”ƒ–‹‰Ž‹“—‹†‹ ‘ ˆ  ‹ ˆ ‡ ‘  Ž ‘ • ‡ Ž ›  ‘  ‹ – ‘ ” • – Š ‡ • ‘ Ž ˜ ‡  › ƒ  †  ƒ ’ ‹ – ƒ Ž  Currency Šƒ”–‡”‡†„ƒ•Ǥ _ B P F  C risk  46   _ risk 11 2 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 risk 1 6   - 1  1 - RISK  0  risk 5 _ v 1 . i n  d d 

MANAGEMENT

B 4 6  ȋ ‘–‹—‡†Ȍ –›–Š”‘—‰Š ƒ•ŠˆŽ‘™ƒ  ˆˆ‡ –•ǡƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡Ǥ ‹ˆ‡ ‘ǯ•†‡„–‘„Ž‹‰ƒ–‹‘•ƒ”‡ƒ‹Ž›†‡‘‹ƒ–‡†‹ •‹„Ž‡ˆ‘”–Š‡‘˜‡”•‹‰Š–‘ˆ‹ˆ‡ ‘ǯ•‡›”‹••Ǥ‹ˆ‡ ‘ǯ• Š‡›‡ƒ”‡†‡†‡ ‡„‡”͵ͳǡʹͲͳͷǤ ‡‘‡ƒ‡  Š•‰‘”’‹”‰‘‘‹ ‘” ”‡‰‹‘ ‰‡‘‰”ƒ’Š‹  •ƒ‡ –Š‡ ‹ ‘’‡”ƒ–‡ Š‡› “—‹†‹–›”‹•ǣ ‹–‹‡•–Šƒ–ƒ”‡‘–ƒ– Š‡†„› —””‡ ›ǡ Šƒ‰‡•‹ ‡š Šƒ‰‡Ž‘••‡•‘–‘ˆˆ•‡–„›Ž‹ƒ„‹Ž‹–›†‡ ”‡ƒ•‡•Ǥ •Žƒ–‹‘‰ƒ‹•ƒ†Ž‘••‡•ˆ”‘‡–‹˜‡•–‡–•‹ ‡–”ƒ ”—‘”Ž–† ‡–”‘‰‘’‘ˆ ‰”‘—’• ‘” †‡„–‘”• ”‡Žƒ–‡† ‘ˆ ‰”‘—’ ƒ †‡„–‘”ǡ ‘• ‘ ƒ—’” Š”ƒ† ƒ‹ƒ”ƒ–‹‘• ƒ’‹–ƒŽ ƒ† •Šƒ”‡ ’‡” ˜ƒŽ—‡ „‘‘ ‘ǯ• ’ƒ”‡†–‘–Š‡ǤǤ†‘ŽŽƒ”ǡ”‹–‹•Š’‘—†ƒ†‡—”‘ ‡ ‡„‡”͵ͳǡʹͲͳͷǤ•—ƒ”›‘ˆ–Š‡”‹••‹• Ž›–Š‡•ƒ‡ƒ‘—–ǡ”‡•—Ž–‹‰‹ƒ‹ƒ–‡”‹ƒŽ –ƒ‹• ‘‹––‡†Ž‹‡•‘ˆ ”‡†‹–™‹–Šƒƒ†‹ƒ –Š‡‹”•—’’‘”–‹‰ƒ••‡–•„›ƒ’’”‘š‹ƒ–‡Ž›–Š‡ – Š‹‰‘ˆƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡ ›Š‘Ž†‡””‡“—‹”‡‡–•ƒ†–Š‡›‹‡Ž†‘ˆƒ••‡–•Ǥ ͳͲΨ•–”‡‰–Š‡‹‰‘ˆ–Š‡ƒƒ†‹ƒ†‘ŽŽƒ” ƒŽŽ‹“—‹†‹–›‹•ƒ˜ƒ‹Žƒ • ‘Ž„‡’ ‡–‹ ‡•‘Ǧ ‹ ”‡ƒ•‡ –‘ ‡š’‡ –‡† „‡ ™‘—Ž† ‡• ’‘•‹–‹‘•‘ˆ‹–•’”‹ ‹’ƒŽ•—„•‹†‹ƒ”‹‡• – ’–‹•”‡ ‹˜‡•–‡– ƒ† ‹•—”ƒ ‡ ”–‹ ‹’ƒ–‹‰ „Ž‡–Š”‘—‰Š‡•–ƒ„Ž‹•Š‡† •ƒ†ˆ‘”‡ ƒ•–‹‰ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 47 B ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ  ”˜‡‘–Š‡’”‡• ”‹„‡†• ‡ƒ”‹‘•™‘—Ž†‘– ”˜‡ ‘ –Š‡ ’”‡• ”‹„‡† • ‡ƒ”‹‘• ™‘—Ž† ‘– ””‡Žƒ–‹‘ –‘‰‡–Š‡” ™‹–Š ƒ”‰‹• ˆ‘” ƒ†˜‡”•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ†‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ†‡ ”‡ƒ•‡ ‡ͳΨ’ƒ”ƒŽŽ‡Ž•Š‹ˆ–‹–Š‡›‹‡Ž† —”˜‡™‘—Ž†‘–  Šƒ˜‡ „‡‡ ƒ†‡ ”‡‰ƒ”†‹‰ ”ƒ–‡• ‘ˆ ”‡–—”• ‘ ƒ–‹‘ ƒ••—’–‹‘• —•‡ „‡•– ‡•–‹ƒ–‡• ‘ˆ ˆ—–—”‡  •–‹–—–‡‘ˆ –—ƒ”‹‡•Ǧ’”‡• ”‹„‡†• ‡ƒ”‹‘•Ǥ ‹–‡”‡•–”ƒ–‡•ƒ–„‘–Š–Š‡Ž‘™ƒ†Š‹‰Š‡†‘ˆ–Š‡ –Š‹•ƒ••—’–‹‘‹•–‘†‡–‡”‹‡–Š‡‡ˆˆ‡ –‘–Š‡ —– ‘‡•Ǥ ƒ”‰‹• ƒ”‡ ”‡˜‹‡™‡† ’‡”‹‘†‹ ƒŽŽ› ˆ‘” ƒ”‰‹•ƒ”‡‡ ‡••ƒ”›–‘’”‘˜‹†‡ˆ‘”’‘••‹„‹Ž‹–‹‡• –‡ƒ••—’–‹‘•ƒ†’”‘˜‹†‡”‡ƒ•‘ƒ„Ž‡ƒ••—”ƒ ‡ ‡—•‡†‹–Š‡ƒƒ†‹ƒ••‡–‹ƒ„‹Ž‹–›‡–Š‘†–‘ ”‡ƒ•‹‰ǡ†‡ ”‡ƒ•‹‰ƒ†ˆŽ— –—ƒ–‹‰”ƒ–‡•Ȍ‹•†‘‡ ”‡Š‘Ž†‡”•ǯ‡–‡ƒ”‹‰•‘ˆ‹ˆ‡ ‘‘ˆƒͳΨ Šƒ‰‡‹ –‘ˆ–Š‡ƒƒ†‹ƒ •–‹–—–‡‘ˆ –—ƒ”‹‡•Ǧ’”‡• ”‹„‡† –”ƒ–‡•–‘„‡ ‘˜‡”‡†„›–Š‡’”‘˜‹•‹‘•Ǥ ˆ•—•–ƒ‹‡† ‹ ‘•‹†‡”ƒ–‹‘‘ˆŽ‘‰Ǧ–‡”Š‹•–‘”‹ ƒŽ”‡•—Ž–•ƒ† ƒ–‡•‹••—ˆˆ‹ ‹‡––‘ ‘˜‡”ƒ„”‘ƒ†‡”‘”‘”‡•‡˜‡”‡ ƒ”‹‘• ‘˜‡”‡†Ǥ Š‡•‡’”‘˜‹•‹‘•ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ‹–‹‡• ȋͳ͸ͺȌ ͸ͻ͸ ȋͳ͸͵Ȍ ͸ͳͶ ȋ ‘–‹—‡†Ȍ  ˆ”‘–Š‡ —””‡–ƒƒ†‹ƒ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER  MANAGEMENT  7  4 B

risk



d rates d  n i . 1 RISK v rate  _ 5  0 - 1 1 interest  - 11 6  1 in  0 2 _ Interest Š‡ ‡ˆˆ‡ – ‘ˆ ƒ ‹‡†‹ƒ–‡ ͳΨ ’ƒ”ƒŽŽ‡Ž ‹ ”‡ƒ•‡ ‹ –Š‡ ›‹‡Ž† Šƒ‰‡–Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•Ǥ — Š‡‡ˆˆ‡ –‘ˆƒ‹‡†‹ƒ–‡ͳΨ’ƒ”ƒŽŽ‡Ž†‡ ”‡ƒ•‡‹–Š‡›‹‡Ž† — Šƒ‰‡–Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•Ǥ C F

P _ 2 Š‡”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡• ‘˜‡”‡†„›–Š‡•‡’”‘˜‹•‹‘•‹••‡– ‹•‘‹–‘”‡†“—ƒ”–‡”Ž›™‹–Šƒˆ—ŽŽ”‡˜‹‡™ƒ—ƒŽŽ›Ǥ‹‡†‹ƒ– Šƒ˜‡ƒƒ–‡”‹ƒŽ‹’ƒ –‘‹ˆ‡ ‘ǯ•˜‹‡™‘ˆ–Š‡”ƒ‰‡‘ˆ‹–‡”‡• Š‘™‡˜‡”ǡ–Š‡’ƒ”ƒŽŽ‡Ž•Š‹ˆ– ‘—Ž†‹’ƒ –‹ˆ‡ ‘ǯ•”ƒ‰‡‘ˆ• ‡ Š‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–”ƒ–‡•ƒŽ•‘ ‘•‹†‡”•–Š‡‹’ƒ • ‡ƒ”‹‘•ǣ ”‡‹˜‡•–‡– ”ƒ–‡• ƒ† ‹ˆŽƒ–‹‘ ƒ••—’–‹‘• ™‹–Š ƒ ƒ••—‡† ‘ †‡˜‹ƒ–‹‘•‡–‹ƒ ‘”†ƒ ‡™‹–Š’”‘ˆ‡••‹‘ƒŽ•–ƒ†ƒ”†•ǤŠ‡•‡ ‘ˆ‹•‡•–‹ƒ–‹‘ƒ†Ȁ‘”ˆ—–—”‡†‡–‡”‹‘”ƒ–‹‘‹–Š‡„‡•–‡•–‹ƒ –Šƒ– ‹•—”ƒ ‡ ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡• ‘˜‡” ƒ ”ƒ‰‡ ‘–‹—‡†ƒ’’”‘’”‹ƒ–‡‡••Ǥ ‘ˆ ’‘••‹„Ž‡ ‘ ‡•–‹‰—†‡”ƒ—„‡”‘ˆ‹–‡”‡•–”ƒ–‡• ‡ƒ”‹‘•ȋ‹ Ž—†‹‰‹ –‘ƒ••‡••”‡‹˜‡•–‡–”‹•ǤŠ‡–‘–ƒŽ’”‘˜‹•‹‘ˆ‘”‹–‡”‡•–” •‡–‘ˆ”‹••–Šƒ–Š‡‹‹—ƒ”‹•‹‰ ”‘Œ‡ –‡† ƒ•ŠˆŽ‘™•ˆ”‘–Š‡ —””‡–ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•ƒ” †‡–‡”‹‡ ‹•—”ƒ ‡ ‘–”ƒ – Ž‹ƒ„‹Ž‹–‹‡•Ǥ ƒŽ—ƒ–‹‘ƒ••—’–‹‘• •—’’‘”–‹‰ ƒ••‡–•ǡ ˆ‹š‡† ‹ ‘‡ǡ ‡“—‹–› ƒ† ‹ˆŽƒ–‹‘Ǥ Š‡ ˜ƒŽ—   Change  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž     NOTE b)     ‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•‹’ƒ –‹‰–Š‡•Šƒ ‹ˆ‡ ‘ǯ•˜‹‡™‘ˆ–Š‡”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡•–‘„‡ ‘˜‡”‡†„›– ‘–Š‡‡ˆˆ‡ –‘ˆƒ‹‡†‹ƒ–‡ͳΨ‹ ”‡ƒ•‡‘”ͳΨ†‡ ”‡ƒ•‡‹–Š‡ ”ƒ‰‡‘ˆ‹–‡”‡•–”ƒ–‡•”‡ ‘‰‹œ‡†‹–Š‡’”‘˜‹•‹‘•ǣ ‘–Š‡”™ƒ›‘ˆ‡ƒ•—”‹‰–Š‡‹–‡”‡•–”ƒ–‡”‹•ƒ••‘ ‹ƒ–‡†™‹–Š  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰• ͳʹͲ ȋͶͻͺȌ ͳͲͻ ȋͶ͵ͲȌ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B47 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B48 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ”ƒ‡ȋ‡”ƒ‡–‡”‹‰ͶʹȋͷȌ ͵ ȋͶͷ͹Ȍ Ͷ͵͵ ȋͶͷ͹Ȍ  Ͷ͵ʹ   ȋͳͲͺȌ    Ͷͷ ǯ•Ž‹“—‹†‹–›ƒƒ‰‡‡–’”ƒ –‹ ‡•‹ Ž—†‡ǣ Liquidity ȋͳͲͷȌ ˆ‹”•– †‹• —••‡ –Š‡ ƒ”‡ ‘ˆ •‹‰‹ˆ‹ ƒ–Ž›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ•—ƒ”›‘ˆ–Š‡”‹••‹ ƒŽ›•‹•  ƒ† ‘ˆ ‹• —••‹‘ ’”‘ ‡†—”‡• ƒƒ‰‡‡–ǯ• ƒ† ‘”’‘”ƒ–‹‘ǯ• ’‘Ž‹ ‹‡• ƒƒ‰‡‡– Ͷ͹ ”‹• Š‡ IGM   ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰•  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ ‘–”ƒ –Ž‹ƒ Change   ‡•–‹ƒ–‡ƒ••—’–‹‘•ǣ ˆŽ‘™•ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘‘–Š‡‡š’‡ –‡†‹’ƒ ‹–Š‡ —””‡–ƒ”‡– ‘—Ž†”‡•—Ž–‹ Šƒ‰‡•–‘–Š‡•‡ƒ••—’–‹ Š‡„‡•–‡•–‹ƒ–‡”‡–—”ƒ••—’–‹‘•ˆ‘”‡“—‹–‹‡•ƒ”‡’”‹ƒ”‹Ž›   ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‡–‡ƒ”‹‰•  ”‡ƒ•‡ȋ†‡ ”‡ƒ•‡Ȍ‹‘Ǧ’ƒ”–‹ ‹’ƒ–‹‰‹•—”ƒ ‡ Change   ‹‡“—‹–›˜ƒŽ—‡•ǣ ˜ƒŽ—‡•ˆŽ— –—ƒ–‡ǤŠ‡ˆ‘ŽŽ‘™‹‰’”‘˜‹†‡•‹ˆ‘”ƒ–‹‘‘–Š‡‡š’     c) NOTE   Ž‹ƒ„‹Ž‹–‹‡•™‹ŽŽˆŽ— –—ƒ–‡‹Ž‹‡™‹–Š‡“—‹–›˜ƒŽ—‡•ǤŠ‡”‡™‹ ’”‹˜ƒ–‡‡“—‹–‹‡•ǡˆ‘”‡šƒ’Ž‡ǡ•‡‰”‡‰ƒ–‡†ˆ—†’”‘†— –•ƒ†’”‘ ‘‡‹•—”ƒ ‡ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ”‡•—’’‘”–‡ ȋ ͹ͷ ‘ˆ ‡š’‡ –ƒ–‹‘ ‹•—”ƒ ‡ ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡•ƒ–ƒŽ‡˜‡Ž–Šƒ– ‘˜‡”•–Š‡ƒ˜‡”ƒ –ƒ‹Ž ‘†‹–‹‘ƒŽ ƒ ƒ– Ž‹ƒ„‹Ž‹–‹‡• ‘–”ƒ – ‰— ˆ—† •‡‰”‡‰ƒ–‡† ™‹–Š ’‘Ž‹ ‹‡• ‘” †‡”‹˜ƒ–‹˜‡•Ǥ —•‹‰ ”ƒ–‡ ‹–‡”‡•– ‰—ƒ”ƒ–‡‡• ‡‡ˆ‹– ‹–Š†”ƒ™ƒŽ „‡‡ ‹‹— Šƒ˜‡ —ƒ”ƒ–‡‡† ‰—ƒ”ƒ–‡‡• Ž‹ˆ‡–‹‡ ˆ—† •‡‰”‡‰ƒ–‡† ™‹–Š ƒ••‘ ‹ƒ–‡† ”‹•• Š‡ Ž‡ƒ”Ž›†‡ˆ‹‡†Ž‹‹–•–‘‹–‹‰ƒ–‡’”‹ ‡”‹•Ǥ  ‹ ˆ ‡ ‘ Š ƒ • ‹  ˜ ‡ • –  ‡  – ’ ‘ Ž ‹ › ‰ — ‹ † ‡ Ž ‹  ‡ • ‹  ’ Ž ƒ ‡ – Š ƒ – ’ ” ‘ ˜ ‹ † ‡ ˆ E n g ƒ†‹˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž

0 2 Equity ˜‡”•‹‰Š–‘ˆŽ‹“—‹†‹–›„›ƒƒ‰‡‡–ƒ†„› ‘‹––‡‡•‘ˆ–Š‡„ ‰‘‹‰‡ˆˆ‘”–•–‘†‹˜‡”•‹ˆ›ƒ†‡š’ƒ†Ž‘‰Ǧ–‡”‘”–‰ƒ‰‡ˆ—† ‡‰—Žƒ”ƒ••‡••‡–‘ˆ ƒ’‹–ƒŽƒ”‡– ‘†‹–‹‘•ƒ† ǯ•ƒ„‹Ž‹ ‡”ˆ‘”‹‰”‡‰—Žƒ” ƒ•Šˆ‘”‡ ƒ•–•ƒ†•–”‡••–‡•–‹‰Ǥ •—”‹‰‡ˆˆ‡ –‹˜‡ ‘–”‘Ž•‘˜‡”Ž‹“—‹†‹–›ƒƒ‰‡‡–’”‘ ‡••‡• ƒ‹–ƒ‹‹‰Ž‹“—‹†ƒ••‡–•ƒ†Ž‹‡•‘ˆ ”‡†‹––‘•ƒ–‹•ˆ›‡ƒ”Ǧ–  _ FINANCIAL B P F   C in in  48 _ 11 2   best equity 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 risk 1 6   - price 1  1 estimate - RISK 0   5 values _  v 1  . risk i n d d 

  MANAGEMENT

return

B  4 8 –‡ȋͷ ͵ȋ͵ ͳ͵ͻ ȋͷ͵Ȍ ͳ͵͹ ȋͷͷȌ ‹–‹‡•  assumptions   ȋ ‘–‹—‡†Ȍ ‹‹‹•ȋ͵Ȍͷ͵ ͷͶ ͷ͹͵ ȋͷ͵ͶȌ ͷ͹͵ ȋͷ͵͵Ȍ „‹Ž‹–‹‡•  ‰‡Ž‘••‹–Š‡™‘”•–ʹͷΨ‘ˆ–Š‡Ž‘••†‹•–”‹„—–‹‘Ǥ ŽŽ„‡ƒ††‹–‹‘ƒŽ‹’ƒ –•‘–Š‡•‡Ž‹ƒ„‹Ž‹–‹‡•ƒ•‡“—‹–› •’”‡•‡–‡†„‡Ž‘™ǣ ‡”Ž‹“—‹†‹–›‡‡†•Ǥ ͷŽ˜Ž ‘Š” ‘†ǡ ‹‡‘ †‡–‡”‹‡• ‹ˆ‡ ‘ ™‘”†•ǡ ‘–Š‡”  Ž‡˜‡ŽǤ ͹ͷȌ ‡ –‡†‹’ƒ –•‘ˆƒͳͲΨ‹ ”‡ƒ•‡‘”ͳͲΨ†‡ ”‡ƒ•‡ ”‡•ˆ ‰”Ž› ‡‡• ‹•—”ƒ ‡ †‡–‡”‹‡• ‰‡‡”ƒŽŽ› ‹ˆ‡ ‘ ƒ”ƒ–‡‡•ǡ „ƒ•‡†‘Ž‘‰Ǧ–‡”Š‹•–‘”‹ ƒŽƒ˜‡”ƒ‰‡•ǤŠƒ‰‡• ‘•ƒ†™‹ŽŽ‹’ƒ –„‘–Šƒ••‡–ƒ†Ž‹ƒ„‹Ž‹–› ƒ•Š †„›‹˜‡•–‡–’”‘’‡”–‹‡•ǡ ‘‘•Šƒ”‡•ƒ† ” ”†‹˜•‹‡—–”‡• ™‹–Š ƒ”‡–• ‡“—‹–› ‹ ‹˜‡•–‡– ’”—†‡– ‘” †— –•™‹–ŠŽ‘‰Ǧ–ƒ‹Ž ƒ•ŠˆŽ‘™•Ǥ ‡‡”ƒŽŽ›–Š‡•‡ Ͳ”ƒ‡ͳΨ† ‡•ͳΨ‹ ‡• ͳͲΨ†‡ ”‡ƒ•‡ ͳͲΨ‹ ”‡ƒ•‡ ͳͲΨ†‡ ”‡ƒ•‡ ͳͲΨ‹ ”‡ƒ•‡ –•‘ˆƒͳΨ‹ ”‡ƒ•‡‘”ͳΨ†‡ ”‡ƒ•‡‹–Š‡„‡•– Ψ‹ ‡• Ψ† ‡•ͳ”ƒ‡ͳΨ†‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ ͳΨ†‡ ”‡ƒ•‡ ͳΨ‹ ”‡ƒ•‡ –›–‘ƒ ‡••„ƒƒ† ƒ’‹–ƒŽƒ”‡–ˆ—†‹‰Ǥ Ǥ ‹‰•‘—” ‡•Ǥ ‘ƒ”†‘ˆ†‹”‡ –‘”•‘ˆ Ǥ —”‡‘ʹͳǡ Š˜– Šƒ‰‡† ‘– Šƒ˜‡ ƒ† ʹͲͳ͸ǡ ‘ˆ “—ƒ”–‡”  ‹‹ƒ‡–”—Š Š†‹‰ ”‰ƒˆ‘” ’”‘‰”ƒ Š‡†‰‹‰ ƒ –Š”‘—‰Š ‹–‹‰ƒ–‡† “‹› ——‡ǡ —”› ‘™”•ƒ† ˆ‘”™ƒ”†•ǡ —””‡ › ˆ—–—”‡•ǡ ‡“—‹–›  ˆ”Š”  Š  ‡–‘‘–Š‡ ‘ˆ •‡ –‹‘  –Š‡ ‹ ˆ—”–Š‡” †   ƒ ͳͲ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ ‡ ‡„‡”͵ͳǡʹͲͳͷ ƒ” Š͵ͳǡʹͲͳ͸ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 49 B   ‹••—‡• ƒ† ”‡‹˜‡•–‡– ‘ˆ ’”‹ ‹’ƒŽ •’ƒ‹†‘–Š‡•ƒŽ‡‘ˆ‹˜‡•–‡–ˆ—†•Ǥ ‡†‹– ”‹• ”‡Žƒ–‡† –‘ ”‡•‹†‡–‹ƒŽ ‘”–‰ƒ‰‡• ’‘•‘”‡† •‡ —”‹–‹œƒ–‹‘ –”—•–•Ǥ ƒ’ƒ ‹–› ˆ‘” ‘•ǡ”‡•‹†‡–‹ƒŽ‘”–‰ƒ‰‡•ƒ”‡•‘Ž†–‘–Š‹”† ƒ†ƒ‘”–‰ƒ‰‡‘†”‘‰”ƒȋ”‘‰”ƒȌǤ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡˆ‹š‡†‹ ‘‡•‡ —”‹–‹‡•ǡ ƒ†Š‡”‹‰–‘‹–•‹˜‡•–‡–’‘Ž‹ ›–Šƒ–‘—–Ž‹‡• –‹‘ƒŽ ‘—•‹‰ –‘”–‰ƒ‰‡Ǧƒ ‡†‡ —”‹–‹‡• ƒ†‘ŽŽƒ”•ǡƒ††‘‘–Šƒ˜‡•‹‰‹ˆ‹ ƒ–‡š’‘•—”‡ –Š”‘—‰Š’”‹˜ƒ–‡’Žƒ ‡‡–•ǡƒƒ†‹ƒ„ƒǦ ‹‡•–Š‡”‡‹•‘„Œ‡ –‹˜‡‡˜‹†‡ ‡‘ˆ‹’ƒ‹”‡– ƒ†‹˜‡•–‡–Ž‘ƒ’‘”–ˆ‘Ž‹‘•ǡƒ††‡”‹˜ƒ–‹˜‡• ˆ”‘‘’‡”ƒ–‹‰ ƒ•ŠˆŽ‘™•Ǥ  Šƒ‰‡†ƒ–‡”‹ƒŽŽ›•‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ •‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ ƒ˜‡ ‘– Šƒ‰‡† ƒ–‡”‹ƒŽŽ› •‹ ‡ ‡ ‡„‡” ͵ͳǡ ‡”‡†„ƒ ‘—–‡”’ƒ”–‹‡•‹‘”†‡”–‘”‡†— ‡–Š‡ ˆ—†•™Š‹ Šƒ”‡ Žƒ••‹ˆ‹‡†ƒ•ˆƒ‹”˜ƒŽ—‡–Š”‘—‰Š –ˆ—†•™Š‹ Šƒ”‡ Žƒ••‹ˆ‹‡†ƒ•ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ Š‘Ž†‘”–‰ƒ‰‡•’‡†‹‰•ƒŽ‡‘”•‡ —”‹–‹œƒ–‹‘–‘ ‹–‹‰•–ƒ†ƒ”†•Ǥ ‘ ‡”–ƒ‹‘ˆ–Š‡†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ‡”ƒ–‹‘•Ǥ Ž‡•‡ —”‹–‹‡•ƒ”‡”‡ ‘”†‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡ ‡ƒ”‹‰•Ǥ ‡–’”ƒ –‹ ‡•‘ƒ‘‰‘‹‰„ƒ•‹•–‘‡˜ƒŽ—ƒ–‡–Š‡‹” FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ȋ ‘–‹—‡†Ȍ  Ž‡†‹‰’‘Ž‹ ›ƒ†—†‡”™” ‹–• ƒƒ‰‡‡– ‘ˆ Ž‹“—‹†‹–› ”‹• Š POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER   MANAGEMENT 9  4 B 

risk

risk 

 d d n i . risk 1  RISK v rate  _  5 price    0 - 1 1 - 11 risk 6   1 risk  0 2 _ Interest Equity Currency C F

P _ 2 ‹•‡š’‘•‡†–‘‡“—‹–›’”‹ ‡”‹•‘‹–•’”‘’”‹‡–ƒ”›‹˜‡•–‡ •‡ —”‹–‹‡•ƒ†‹–•‡“—‹–›•‡ —”‹–‹‡•ƒ†’”‘’”‹‡–ƒ”›‹˜‡•–‡– ’”‘ˆ‹–‘”Ž‘••Ǥ”‡ƒŽ‹œ‡†‰ƒ‹•ƒ†Ž‘••‡•‘ƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒ ‹ ‘‡—–‹Ž–Š‡›ƒ”‡”‡ƒŽ‹œ‡†‘”—–‹Žƒƒ‰‡‡–‘ˆ †‡–‡” ‹•‡š’‘•‡†–‘‹–‡”‡•–”ƒ–‡”‹•‘‹–•Ž‘ƒ’‘”–ˆ‘Ž‹‘ƒ† —•‡†‹ ǯ•‘”–‰ƒ‰‡„ƒ‹‰‘’‡”ƒ–‹‘•Ǥ —–‹Ž‹œ‡•‹–‡”‡•–”ƒ–‡•™ƒ’•™‹–Šƒƒ†‹ƒ Š‡†—Ž‡  Šƒ”– ‹’ƒ –‘ˆˆŽ— –—ƒ–‹‰‹–‡”‡•–”ƒ–‡•‘‹–•‘”–‰ƒ‰‡„ƒ‹‰‘’ ǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡‡–‘ˆ‹–‡”‡•–”ƒ–‡”‹•Šƒ˜‡‘– c) ‹˜ƒŽ—‡ǡƒ–™Š‹ Š–‹‡–Š‡›ƒ”‡”‡ ‘”†‡†‹–Š‡•–ƒ–‡‡–•‘ˆ ’ƒ”–‹‡• ‹ Ž—†‹‰ ‡”–ƒ‹ —–—ƒŽ ˆ—†•ǡ•’‘•‘”‡†•‡ —”‹–‹œƒ–‹‘–”—•–•ǡƒ†„›‹••—ƒ ‡ƒ†•ƒŽ‡‘ˆƒ ‹•–‹–—–‹‘ƒŽ ‹˜‡•–‘”• ȋ Ȍǡ‹ Ž—†‹‰•ƒŽ‡•–‘ƒƒ†ƒ ‘—•‹‰”—•–—†‡”–Š‡ƒ  ƒ‹–ƒ‹• ‘‹––‡† ƒ’ƒ ‹–› ™‹–Š‹ ‡”–ƒ‹ ƒƒ†‹ƒ „ƒǦ• •ƒŽ‡• —†‡” –Š‡  ”‘‰”ƒ”‡’ƒ›‡–•Š‡Ž†‹’”‹ ‹’ƒŽ”‡‹˜‡•–‡–ƒ ‘—–•Ǥ ‘•‹•–• ‘ˆ ’ƒ”–‹ ‹’ƒ–‹‘ ‹ ‡™  ǯ• Ž‹“—‹†‹–› ’‘•‹–‹‘ ƒ† ǯ•ˆ‹ƒ ‹ƒŽ‹•–”—‡–•ƒ”‡‰‡‡”ƒŽŽ›†‡‘‹ƒ–‡†‹ƒƒ†‹ –‘ Šƒ‰‡•‹ˆ‘”‡‹‰‡š Šƒ‰‡”ƒ–‡•Ǥ b) ‘‹••‹‘•‘–Š‡•ƒŽ‡‘ˆ‹˜‡•–‡–ˆ—†• ‘–‹—‡–‘„‡’ƒ‹† ƒŽ•‘ƒ‹–ƒ‹••—ˆˆ‹ ‹‡–Ž‹“—‹†‹–›–‘ˆ—†ƒ†–‡’‘”ƒ”‹Ž› Ž‘‰Ǧ–‡” ˆ—†‹‰ •‘—” ‡•Ǥ Š”‘—‰Š ‹–• ‘”–‰ƒ‰‡ „ƒ‹‰ ‘’‡”ƒ–‹ ʹͲͳͷǤ Market a) Credit ǯ• ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•ǡ•‡ —”‹–‹‡•Š‘Ž†‹‰•ǡ‘”–‰ƒ‰‡  NOTE  ‡› Ž‹“—‹†‹–› ”‡“—‹”‡‡– ˆ‘”  ‹• –Š‡ ˆ—†‹‰ ‘ˆ ‘‹••‹‘     ƒ”‡•—„Œ‡ ––‘ ”‡†‹–”‹•Ǥ ‘‹–‘”•‹–• ”‡†‹–”‹•ƒƒ‰‡ ‡ˆˆ‡ –‹˜‡‡••Ǥ ƒƒ‰‡• ”‡†‹–”‹•”‡Žƒ–‡†–‘ ƒ•Šƒ† ƒ•Š‡“—‹˜ƒŽ‡–•„› ”‡†‹– ”‹• ’ƒ”ƒ‡–‡”• ƒ† ‘ ‡–”ƒ–‹‘ Ž‹‹–•Ǥ  ƒƒ‰‡• ” ’ƒ”–‹ —Žƒ”Ž›–Š”‘—‰Šƒ†Š‡”‹‰–‘‹–• ǯ•‡š’‘•—”‡–‘ƒ†ƒƒ‰‡‡–‘ˆ ”‡†‹–”‹•”‡Žƒ–‡†–‘ ƒ•Š ‘”–‰ƒ‰‡’‘”–ˆ‘Ž‹‘•ƒ††‡”‹˜ƒ–‹˜‡•Šƒ˜‡‘– Šƒ‰‡†ƒ–‡”‹ƒŽŽ› 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B49 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B50 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ȏͳȐ ‘–ƒŽ‡š’‡•‡  ‡‡ƒ•—”‡‡–•  š’‡•‡”‡ ‘‰‹œ‡†‹‡–‡ƒ”‹‰•   ‘•–Ǧ‡’Ž‘›‡–„‡‡ˆ‹–•      ‡•‹‘’Žƒ•  ‹ ‡š’‡•‡  „‡‡ˆ‹–• ’‘•–Ǧ‡’Ž‘›‡– ‘–Š‡” ƒ† ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍƒ”‡ƒ•ˆ‘ŽŽ‘™•ǣ ’Žƒ ’‡•‹‘ Š‡ NOTE   š‡•‡‘œ†‹–‡‘’‡‡•˜‘‡ȋ‘• ͺʹͶ͵ ʹͺͺ š’‡•‡”‡ ‘‰‹œ‡†‹‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ  E n  –—ƒ”‹ƒŽŽ‘••‡•”‡Žƒ–‡†–‘–Š‡’‡•‹‘’Žƒ•ƒ†‘–Š‡”’‘•–Ǧ‡ g ‘•–Ǧ‡’Ž‘›‡–„‡‡ˆ‹–• ‡•‹‘’Žƒ• ‡–‹–‡”‡•– ‘•– ‡”˜‹ ‡ ‘•–• ‡–‹–‡”‡•– ‘•– —”–ƒ‹Ž‡– ‡”˜‹ ‡ ‘•–• ‡”ƒ‡‹‹ —–”–••‡ ‡ͳͲͷ †‡ ”‡ƒ•‡‹†‹• ‘—–”ƒ–‡••‹ ‡‡ ‡„‡”͵ͳǡʹͲͳͷǤ 0 2 ‡—‘•‡•Ž™”ȋ”ƒ‡Ȍ–ƒ‹ —–”– ͵ ȋͶ͵ͳȌ ȋ͵Ȍ  –—ƒ”‹ƒŽŽ‘••‡• Šƒ‰‡‹–Š‡ƒ••‡– ‡‹Ž‹‰ ‡–—”‘ƒ••‡–•Ž‘™‡”ȋ‰”‡ƒ–‡”Ȍ–Šƒ†‹• ‘—–”ƒ–‡  –—ƒ”‹ƒŽŽ‘••‡• _ B P F C  50 _ 12 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - PENSION 0  5 _ v 1 ȏͳȐ ȏͳȐ . i n d d

B 5 0  PLANS  AND  OTHER  ’‘„ˆ–ˆ” Š–”‡ ‘–• ‡”Š ͳʹͳƒ” ʹͲͳ͸ ͵ͳǡ ƒ” Š ‡†‡† ‘–Š• –Š”‡‡ –Š‡ ˆ‘” „‡‡ˆ‹–• ’Ž‘›‡– POST Ǧ EMPLOYMENT —‡‹– ƒ• ‘–Š‡” ƒ† ‡ƒ”‹‰• ‡– ‹ Ž—†‡†  BENEFITS Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ  Ͳ͸ʹͲͳͷ ʹͲͳ͸ Ͳͷ͸ͻ ͵ͲͶ Ͷ͵ͳͷ ͵Ͷ͹ ʹȌͺͷ ȋʹ͸Ȍ ͳȌȂ ȋͳ͵Ȍ ͵ ʹͲ ͳ͵ ͻ ͷ͹ ͷͻ ͻ ͹ʹ ͷͻ ͷ ͸͸ ͷͷ ͸ Ͷ ͷ ͳ ͵ ͳ ͻ ͻ          †‡ ‘ ƒ –‘ †—‡ ‡  116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 51 B ͺ͵͹Ͳ ͳͺͺ ʹͺͲ ȋͳ͵Ȍ ͻʹ ʹͲͳ͸ ʹͲͳͷ Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ Š‡ƒ‰‰”‡‰ƒ–‡†‡ˆ‡””‡†–ƒš — ‡”–ƒ‹–›‘ˆ–Š‡”‡ ‘˜‡”ƒ„‹Ž‹–›‹•–ƒ‡‹–‘ ƒ”‡ǣ ’‡†‡– ‘ ˆ—–—”‡ –ƒšƒ„Ž‡ ‡ƒ”‹‰• ™Š‡”‡ –Š‡ ’”‹ƒ”‹Ž›†—‡–‘–Š‡‡ˆˆ‡ –ˆ”‘–Š‡”‡•—Ž–•‘ˆ ˆ‡”‡ ‡•ƒ†——•‡†–ƒšƒ––”‹„—–‡•‘Ž›–‘–Š‡ ͵ͳǡʹͲͳ͸‹•Ž‘™‡”–Šƒ–Š‡–Š”‡‡‘–Š•‡†‡† Œ—”‹•†‹ –‹‘•ǡƒ”‡†— –‹‘‘ˆ‹ ‘‡–ƒš‡•‹–Š‡ –‹‘•ƒ†–Š‡”‡•—Ž–•ˆ”‘–Š‡Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷǤ ’‘”ƒ–‹‘ǯ••–ƒ–—–‘”›‹ ‘‡–ƒš”ƒ–‡‘ˆʹ͸Ǥ͹Ψ†—‡ ‘ǯ•Š‹‰Š‡”’‡” ‡–ƒ‰‡‘ˆ‘Ǧ–ƒšƒ„Ž‡‹˜‡•–‡– ƒ†Œ—•–‡––‘–ƒš’”‘˜‹•‹‘•ˆ‘”–ƒšˆ‹Ž‹‰•‹–Š‡ ”‡†‹–•ǡƒ–ƒš•‡––Ž‡‡–™‹–Š–Š‡ƒƒ†ƒ‡˜‡—‡ ƒ ‹ƒŽ’Žƒ‹‰’”‘ ‡••’”‘˜‹†‡•ƒ•‹‰‹ˆ‹ ƒ–„ƒ•‹• ””‡†–ƒš„ƒŽƒ ‡•Ǥ Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸™ƒ•ͳͳǤͲΨǡ —–‹Ž‹œ‡†ǤŠƒ‰‡•‹ ‹” —•–ƒ ‡•‹ˆ—–—”‡’‡”‹‘†• ƒ”‘”–Š‡’”‡ ‡†‹‰›‡ƒ”Ǥ ‰Šˆ—–—”‡–ƒšƒ„Ž‡‡ƒ”‹‰•‹•’”‘„ƒ„Ž‡Ǥ –‹–›™‹ŽŽŠƒ˜‡–ƒšƒ„Ž‡‡ƒ”‹‰•ƒ†Ȁ‘”–ƒš’Žƒ‹‰ ̈́ͳǡ͵͹͵‹ŽŽ‹‘ƒ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ȋ̈́ͳǡͶ͵Ͷ‹ŽŽ‹‘ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  Šƒ”‡‘––ƒšƒ„Ž‡Ǥ   POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER RATE TAXES     TAX 1  5 B

d ASSETS d  n i . 1 INCOME EXPENSE v  _ INCOME TAX 5     0 - 1 1 TAX -  13 6  1 0 2 _ C F P _ 2 ƒ••‡–•ˆ‘”–Š‡‘•–•‹‰‹ˆ‹ ƒ–‡–‹–‹‡•™Š‡”‡–Š‹•ƒ’’Ž‹‡•‹• ƒ•ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷȌǤ  ‡ ‘‰‹–‹‘‹•„ƒ•‡†‘–Š‡ˆƒ ––Šƒ–‹–‹•’”‘„ƒ„Ž‡–Šƒ––Š‡‡ ‘’’‘”–—‹–‹‡•ƒ˜ƒ‹Žƒ„Ž‡–‘ƒŽŽ‘™–Š‡†‡ˆ‡””‡†–ƒšƒ••‡–•–‘„‡ ƒ›ƒ†˜‡”•‡Ž›‹’ƒ ––Š‡ƒ••‡••‡–‘ˆ–Š‡”‡ ‘˜‡”ƒ„‹Ž‹–›ǤŠ‡ ƒ ‘—–‹‡•–ƒ„Ž‹•Š‹‰–Š‡†‡ˆ‡””‡†–ƒšƒ••‡–•ǤŠ‡ƒ—ƒŽˆ‹ ˆ‘”–Š‡‡ƒ•—”‡‡–‘ˆ†‡ˆ‡””‡†–ƒšƒ••‡–•Ǥ Š‡ †‡ˆ‡””‡† –ƒš ƒ••‡–• ‘ˆ ‹ˆ‡ ‘ ‹ Ž—†‡ „ƒŽƒ ‡• ™Š‹ Š ƒ”‡”‡Ž‡˜ƒ–‡–‹–‹‡•Šƒ˜‡‹ —””‡†Ž‘••‡•‹‡‹–Š‡”–Š‡ —””‡–›‡ †‡  DEFERRED ‡ˆ‡””‡†–ƒšƒ••‡–•ƒ”‡”‡ ‘‰‹œ‡†ˆ‘”†‡†— –‹„Ž‡–‡’‘”ƒ”›†‹ˆ ‡š–‡––Šƒ–”‡ƒŽ‹œƒ–‹‘‘ˆ–Š‡”‡Žƒ–‡†‹ ‘‡–ƒš„‡‡ˆ‹––Š”‘—  EFFECTIVE Š‡‘˜‡”ƒŽŽ‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ˆ‘”–Š‡‘”’‘”ƒ–‹‘ˆ‘”–  NOTE INCOME Š‡ ‘’‘‡–•‘ˆ‹ ‘‡–ƒš‡š’‡•‡”‡ ‘‰‹œ‡†‹‡–‡ƒ”‹‰•   —””‡––ƒš‡• ‡ˆ‡””‡†–ƒš‡•     ‘’ƒ”‡†–‘ͳͷǤʹΨˆ‘”–Š‡ˆ—ŽŽ›‡ƒ”ʹͲͳͷƒ†ʹʹǤ͹Ψˆ‘”–Š‡–Š”‡ Š‡‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡•ƒ”‡‰‡‡”ƒŽŽ›Ž‘™‡”–Šƒ–Š‡‘” –‘‘Ǧ–ƒšƒ„Ž‡‹˜‡•–‡–‹ ‘‡ǡŽ‘™‡”–ƒš‹ˆ‘”‡‹‰Œ—”‹•†‹ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•™Š‹ Š‡‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š ‰‡ ›”‡Žƒ–‹‰–‘’”‡˜‹‘—•›‡ƒ”•ǯ‹–‡”ƒ–‹‘ƒŽ–ƒšƒ—†‹–•ǡƒ ǤǤǡƒ†–Š‡‹’ƒ –‘ˆǤǤ ‘”’‘”ƒ–‡–ƒš”ƒ–‡ Šƒ‰‡•‘†‡ˆ‡ ƒ” Š͵ͳǡʹͲͳͷƒ†–Š‡ˆ—ŽŽ›‡ƒ”ʹͲͳͷ‡ˆˆ‡ –‹˜‡‹ ‘‡–ƒš”ƒ–‡ Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ•™‡ŽŽƒ•‹ˆ‡ ‹ ‘‡ƒ†‹ ‘‡•—„Œ‡ ––‘Ž‘™‡”‹ ‘‡–ƒš”ƒ–‡•‹ˆ‘”‡‹‰ ǤǤƒ•ƒ”‡•—Ž–‘ˆƒƒƒ‰‡‡–‡Ž‡ –‹‘–‘ Žƒ‹ˆ‘”‡‹‰–ƒš 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B51 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B52 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ‹‹‡†’”‡—Ž’‡‡”†•ƒ‡ ͵Ȍȋ͵͵Ȍ ͸Ͳ͸ ͷ͹͵ ȋ͵ͳȌ ʹͻͲ ͹ͳ͵Ǥ ʹͷͻ  ˆ”‘–Š‡ ‘’—–ƒ–‹‘‘ˆ†‹Ž—–‡†‡ƒ”‹‰•’‡”•Šƒ”‡ƒ•–Š‡›™‡”‡ ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ǡ͹ǡʹʹͶǡͳ͸͵•–‘ ‘’–‹  ‹Ž—–‡† ƒ•‹  ͵ͻͲ Net  ȋͷͲȌ ƒ•‹ ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡—„‡”‘ˆ ‘‘•Šƒ”‡•‘—–•–ƒ†‹‰Ȃ ȋͶ͹ͻȌ Number  ʹͶͳ ‡–‡ƒ”‹‰•ƒ†Œ—•–‡†ˆ‘”†‹Ž—–‹˜‡‡ˆˆ‡ – ‹Ž—–‹˜‡‡ˆˆ‡ –‘ˆ•—„•‹†‹ƒ”‹‡• ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘ ‘‘•Šƒ”‡Š‘Ž†‡”• ͸͸͸ ‹˜‹†‡†•‘’‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡• ‡–‡ƒ”‹‰•ƒ––”‹„—–ƒ„Ž‡–‘•Šƒ”‡Š‘Ž†‡”• ͳʹ Earnings ͳǡ͹Ͷͳ ȋʹ͹Ȍ ’‡”•Šƒ”‡ǣ ȋ͵͹ͶȌ Š‡ˆ‘ŽŽ‘™‹‰‹•ƒ”‡ ‘ ‹Ž‹ƒ–‹‘‘ˆ–Š‡—‡”ƒ–‘”•ƒ†–Š‡†‡ ʹ͹ͺ NOTE ʹǡͲ͵͸   ȋͳ͹ʹȌ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷ       ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸   NOTE   ƒƒ ǡ‡†‘‡‹† ͵ȌͳͳͶʹͺȋͲȌ ͷȌ͹ͻ͹ ȋͷ͵Ȍ ȋ͸ͲͺȌ ʹͻͺ ͳǡͳͻͶ ͳǡͳͶͶ ȋ͵ͶȌ ȋʹͳȌ ȋͷͳͺȌ ͵ͻͻ ͳǡ͵͸ͻ ȋͺͷȌ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ‡‰–†ƒ‡ƒ‡‡ˆ ‘Š”•‘––‹‰ȂŽ–†͹ͳ ‹Ž—–‡† ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡—„‡”‘ˆ ‘‘•Šƒ”‡•‘—–•–ƒ†‹‰Ȃ E n g –‡‘’‡‡•˜‘‡ȋ‘•ȋ͸ ʹ ͹ȋʹȌ ͵ ͶͲ͹ ȋ͵Ȍ ȋͳʹͻȌ ͷ͹ ͷʹͺ ȋͷͻ͹Ȍ ȋͶ͸Ȍ ͸ ȋͳͶͶȌ ͳʹͳ ȋ͸͸͹Ȍ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ ͺ͹ –Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ȋŽ‘••Ȍ ‘‡–ƒš”‹‡‘—•ƒ†– ’‹ͲͶ ͲǤͻ ͲǤͶ ‘–‡–‹ƒŽ‡š‡” ‹•‡‘ˆ‘—–•–ƒ†‹‰•–‘ ‘’–‹‘• 0  earnings 2 _ B P F C    52 of _  15 14 2 0  POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 common 1 6    - per 1 1 - EARNINGS OTHER 0  5 common _ v 1  . shares i n d d

B  5  share 2  COMPREHENSIVE [millions]   PER    SHARE   INCOME ˆŽ‘™Š‡†‰‡• ˆŽ‘™Š‡†‰‡• ”‡˜ƒŽ—ƒ–‹‘ ”‡˜ƒŽ—ƒ–‹‘ ˜‡•–‡ ˜‡•–‡ ƒ† ƒ•Š ƒ† ƒ•Š  – –   –‡•–Šƒ–ƒ›„‡”‡ Žƒ••‹ˆ‹‡† –‡•–Šƒ–ƒ›„‡”‡ Žƒ••‹ˆ‹‡† •—„•‡“—‡–Ž›–‘‡–‡ƒ”‹‰• •—„•‡“—‡–Ž›–‘‡–‡ƒ”‹‰• ƒ–‹Ǧ†‹Ž—–‹˜‡Ǥ –”ƒ•Žƒ–‹‘ –”ƒ•Žƒ–‹‘ ‘‹ƒ–‘”•—•‡†‹–Š‡ ‘’—–ƒ–‹‘•‘ˆ‡ƒ”‹‰• —””‡ —””‡ ‘”‡‹‰ ‘”‡‹‰ ‘•ȋͳǡͻ͵ͷǡͶ͵Ͳ‹ʹͲͳͷȌŠƒ˜‡„‡‡‡š Ž—†‡† › ›   ‘”’‘”ƒ–‹‘• ‘”’‘”ƒ–‹‘• ‘–”‘ŽŽ‡ ‘–”‘ŽŽ‡ ƒ••‘ ‹ƒ–‡• ƒ••‘ ‹ƒ–‡• Šƒ”‡‘ Šƒ”‡‘ Œ‘‹–Ž Œ‘‹–Ž ƒ ƒ † † † † › › ˆ ˆ    „‡‡ˆ‹–’Žƒ• „‡‡ˆ‹–’Žƒ• ”‡ Žƒ••‹ˆ‹‡†–‘‡–‡ƒ”‹‰• ”‡ Žƒ••‹ˆ‹‡†–‘‡–‡ƒ”‹‰• ȋŽ‘••‡•Ȍ‘ ȋŽ‘••‡•Ȍ‘  –—ƒ”‹ƒŽ  –—ƒ”‹ƒŽ †‡ˆ‹‡ †‡ˆ‹‡ –‡•–Šƒ–™‹ŽŽ‘–„‡ –‡•–Šƒ–™‹ŽŽ‘–„‡ ‰ƒ‹• ‰ƒ‹• Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡ † †   ‘”’‘”ƒ–‹‘• ‘”’‘”ƒ–‹‘• Ͳ͸ʹͲͳͷ ʹͲͳ͸ Ǥ͸ ͲǤͺͲ ͲǤͺͲ ͲǤ͵͸ ͲǤ͵͸ ͷͷ͹ʹ ʹͷͺ Ǥ͹ͳ͵Ǥʹ ͵Ǥ͸ ‘–”‘ŽŽ‡ ‘–”‘ŽŽ‡ •‘‹–•‘–ƒŽ ƒ••‘ ‹ƒ–‡• ‘–ƒŽ ƒ••‘ ‹ƒ–‡• ͳ ȋͳȌ ȋͳȌ ͹ͳʹǤ͵ ʹ Šƒ”‡‘ Šƒ”‡‘ Œ‘‹–Ž Œ‘‹–Ž ƒ ƒ † † † † › › ˆ ˆ  116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 53 B Ž‘‰‹‡•ǡ ‘” •‹‹Žƒ” –‡ Š‹“—‡• —•‹‰ ’–‹‘ ”‡•–”‹ –‹‘•ǡ ‡”–ƒ‹ ‘˜‡”Ǧ–Š‡Ǧ ‹˜ƒ–‡ ‡“—‹–‹‡•ǡ •‘‡ ‘”–‰ƒ‰‡ Ž‘ƒ•ǡ ƒ–‡ „‘†•ǡ ‘•– ƒ••‡–Ǧ„ƒ ‡† •‡ —”‹–‹‡•ǡ  •’”‡ƒ†•ǡ –™‘Ǧ•‹†‡† ƒ”‡–•ǡ „‡ Šƒ”  •‡ —”‹–‹‡•ǡ ”‡•–”‹ –‡† •–‘ ǡ •‘‡ ’”‹˜ƒ–‡ –‡”˜ƒŽ•ǤŠ‡ˆƒ‹”˜ƒŽ—‡•ˆ‘”•‘‡‡˜‡Žʹ  “—‘–‡•ǡ ‹–‡”ƒŽ ’”‹ ‹‰ ‘†‡Ž•ǡ ‡š–‡”ƒŽ ‡Žͳ–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž‡ˆ‘”–Š‡ƒ••‡–‘” ‡ˆ‘”–Š‡ƒ••‡–‘”Ž‹ƒ„‹Ž‹–›ǡ•— Šƒ•‹–‡”‡•– •‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•—–‹Ž‹œ‹‰‡˜‡Ž͵‹’—–• ˜ƒŽ—‡‘ˆ†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–•‹•  ƒŽ —Žƒ–‡†—•‹‰ƒ”‡–‹ˆ‘”ƒ–‹‘ƒ–ƒ ”˜‹ ‡ ‹’—–• ‹ Ž—†‡ǡ „—– ƒ”‡ ‘– Ž‹‹–‡† –‘ǡ  ‘– „ƒ•‡† ‘ ‘„•‡”˜ƒ„Ž‡ ƒ”‡– ‹’—–• ƒ† —”‡•ǡƒ†—–—ƒŽƒ†•‡‰”‡‰ƒ–‡†ˆ—†•™Š‹ Š •–”‹ –‹‘•Ǥ ƒ –‹˜‡ƒ”‡–•ˆ‘”‹†‡–‹ ƒŽƒ••‡–•‘”Ž‹ƒ„‹Ž‹–‹‡• –›ˆ‘”–Š‡ƒ••‡–‘”Ž‹ƒ„‹Ž‹–›ǤŠ‡˜ƒŽ—‡•‘ˆ–Š‡  ‡ ‡„‡” ͵ͳǡ ʹͲͳͷ ˆ‹ƒ ‹ƒŽ •–ƒ–‡‡–• ƒ† •ƒ†Ž‹ƒ„‹Ž‹–‹‡•—–‹Ž‹œ‹‰‡˜‡Žͳ‹’—–•‹ Ž—†‡ ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•”‡ ‘”†‡†ƒ–ˆƒ‹”˜ƒŽ—‡ǡ Ž‹–‹‡•‹ Ž—†‡–Š‘•‡’”‹ ‡†—•‹‰ƒƒ–”‹š™Š‹ Š‹• ‡“—‘–‡†’”‹ ‡•ˆ‘”•‹‹Žƒ”ƒ••‡–•ƒ†Ž‹ƒ„‹Ž‹–‹‡•‹ ‘”†‡†ƒ–ˆƒ‹”˜ƒŽ—‡Šƒ˜‡„‡‡ ƒ–‡‰‘”‹œ‡†„ƒ•‡† Ž—ƒ–‹‘‡–Š‘†•ƒ†ƒ••—’–‹‘•†‡• ”‹„‡†‹–Š‡ Š‡ ƒŽ —Žƒ–‹‘•ƒ”‡•—„Œ‡ –‹˜‡‹ƒ–—”‡ǡƒ†‹˜‘Ž˜‡ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER INSTRUMENTS  FINANCIAL  OF  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER VALUE 3  5 B

d d n i . 1 FAIR v _ 5  0 - 1 1 - 16 6  1 0 2 _ ƒŒ‘”‹–› ‘ˆ ‡˜‡Ž ͵ •‡ —”‹–‹‡• ™‡”‡ ‘„–ƒ‹‡† ˆ”‘ƒ’’”ƒ‹•‡”•‘”„›†‹• ‘—–‹‰’”‘Œ‡ –‡† ƒ•ŠˆŽ‘™•Ǥ ‹ƒ ‹ƒŽƒ• •‹‰Ž‡Ǧ„”‘‡” ‹ Ž—†‡ ‡”–ƒ‹ „‘†•ǡ ‡”–ƒ‹‹˜‡•–‡–• ‹ ƒ••‡–Ǧ„ƒ ‡† —–—ƒŽ ƒ† •‡ —”‹–‹‡•ǡ •‡‰”‡‰ƒ–‡† ˆ—†• •‘‡ ‘—–‡”†‡”‹˜ƒ–‹˜‡•ƒ†‹˜‡•–‡–’”‘’‡”–‹‡•Ǥ ™Š‡”‡ ’” –Š‡”‡ ƒ”‡ ”‡†‡ ‡˜‡Ž ͵ ‹’—–• —–‹Ž‹œ‡ ‘‡ ‘” ‘”‡ •‹‰‹ˆ‹ ƒ– ‹’—–•‹ Ž—†‡ –Šƒ– ƒ”‡ •‹–—ƒ–‹‘• ™Š‡”‡ –Š‡”‡ ‹• Ž‹––Ž‡ǡ ‹ˆ ƒ›ǡ ƒ”‡– ƒ –‹˜‹ ‡˜‡Ž ʹ ‹’—–• —–‹Ž‹œ‡ ‘–Š‡”Ǧ–ŠƒǦ“—‘–‡† ’”‹ ‡• ‹ Ž—†‡† ‹ ‡˜ ‡˜‡Žͳ‹’—–•—–‹Ž‹œ‡‘„•‡”˜ƒ„Ž‡ǡ—ƒ†Œ—•–‡†“—‘–‡†’”‹ ‡•‹ –Šƒ––Š‡‘”’‘”ƒ–‹‘Šƒ•–Š‡ƒ„‹Ž‹–›–‘ƒ ‡••Ǥ ‹ƒ ‹ƒŽƒ••‡– ƒ –‹˜‡Ž›‡š Šƒ‰‡Ǧ–”ƒ†‡†‡“—‹–›•‡ —”‹–‹‡•ǡ‡š Šƒ‰‡Ǧ–”ƒ†‡†ˆ—– Šƒ˜‡ƒ˜ƒ‹Žƒ„Ž‡’”‹ ‡•‹ƒƒ –‹˜‡ƒ”‡–™‹–Š‘”‡†‡’–‹‘”‡ Ž‹ƒ„‹Ž‹–›ǡ‡‹–Š‡”†‹”‡ –Ž›‘”‹†‹”‡ –Ž›Ǥ‡˜‡Žʹ‹’—–•‹ Ž—† ƒ –‹˜‡ƒ”‡–•ǡƒ†‘–Š‡”Ǧ–ŠƒǦ“—‘–‡†’”‹ ‡•–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž ”ƒ–‡•ƒ†›‹‡Ž† —”˜‡•–Šƒ–ƒ”‡‘„•‡”˜ƒ„Ž‡ƒ– ‘‘Ž›“—‘–‡†‹ •‡ —”‹–‹‡• ™‡”‡ ‘„–ƒ‹‡† ˆ”‘ ƒ ’”‹ ‹‰ •‡”˜‹ ‡Ǥ Š‡ ’”‹ ‹‰ •‡ „‡ Šƒ” ›‹‡Ž†•ǡ ”‡’‘”–‡† –”ƒ†‡•ǡ „”‘‡”Ȁ†‡ƒŽ‡” “—‘–‡•ǡ ‹••—‡” •‡ —”‹–‹‡•ǡ‘ˆˆ‡”•ƒ†”‡ˆ‡”‡ ‡†ƒ–ƒǤ‡˜‡Žʹƒ••‡–•ƒ†Ž‹ƒ„‹ „ƒ•‡†‘ ”‡†‹–“—ƒŽ‹–›ƒ†ƒ˜‡”ƒ‰‡Ž‹ˆ‡ǡ‰‘˜‡”‡–ƒ†ƒ‰‡ › „‘†• ƒ† ‡“—‹–‹‡•ǡ ‘•– ‹˜‡•–‡–Ǧ‰”ƒ†‡ ƒ† Š‹‰ŠǦ›‹‡Ž† ‘”’‘” ‘•–‘˜‡”Ǧ–Š‡Ǧ ‘—–‡”†‡”‹˜ƒ–‹˜‡•ƒ†‘”–‰ƒ‰‡Ž‘ƒ•ǤŠ‡ˆƒ‹” †‡–‡”‹‡† —•‹‰ ˜ƒŽ—ƒ–‹‘ ‘†‡Ž•ǡ †‹• ‘—–‡†’”‹ƒ”‹Ž›‘„•‡”˜ƒ„Ž‡ƒ”‡–‹’—–•Ǥ ƒ•Š ˆŽ‘™ ‡–Š‘†‘ C F

P _ 2 Š‡ ˆ‘ŽŽ‘™‹‰ –ƒ„Ž‡ ’”‡•‡–• –Š‡ ‘”’‘”ƒ–‹‘ǯ• ˆ‹ƒ ‹ƒŽ ƒ••‡–• ‹ Ž—†‹‰–Š‡‹”Ž‡˜‡Ž•‹–Š‡ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›—•‹‰–Š‡˜ƒ •—ƒ”›‘ˆ•‹‰‹ˆ‹ ƒ–ƒ ‘—–‹‰’‘Ž‹ ‹‡•‘ˆ–Š‡‘”’‘”ƒ–‹‘ǯ• ƒ„‘˜‡Ǥ ƒ‹” ˜ƒŽ—‡• ƒ”‡ ƒƒ‰‡‡–ǯ• ‡•–‹ƒ–‡••’‡ ‹ˆ‹ ’‘‹–‹–‹‡ƒ†ƒ›‘–”‡ˆŽ‡ –ˆ—–—”‡ˆƒ‹”˜ƒŽ—‡•Ǥ ƒ† ƒ”‡ ‰‡‡”ƒŽŽ› — ‡”–ƒ‹–‹‡•ƒ†ƒ––‡”•‘ˆ•‹‰‹ˆ‹ ƒ–Œ—†‰‡–Ǥ       NOTE Š‡ ‘”’‘”ƒ–‹‘ǯ• ˆ‹ƒ ‹ƒŽ ƒ••‡–• ƒ† ˆ‹ƒ ‹ƒŽ Ž‹ƒ„‹Ž‹–‹‡• ”‡ —’‘–Š‡ˆ‘ŽŽ‘™‹‰ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›ǣ      0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B53 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B54 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ –‡‹„Ž–‡ͶȂȂͶ Ȃ Ȃ Ͷ ͳͶ͸ Ȃ  Ȃ –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ͳͶ͸ –Š‡”Ž‹ƒ„‹Ž‹–‹‡• ‡–‡– ” ‹„Ž–‡Ȃʹʹ͸ʹ ʹǡʹͷ͵ ʹ͹ ʹǡʹʹ͸ Ȃ Š‡”‡™‡”‡‘•‹‰‹ˆ‹ ƒ––”ƒ•ˆ‡”•„‡–™‡‡‡˜‡Žͳƒ†‡˜‡Žʹ  ʹǡͳͳ͸ ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• ʹ͵ Financial  ʹǡͲͻ͵ Ȃ ‘†• Financial     ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡– ‘–”ƒ –Ž‹ƒ„‹Ž‹–‹‡• Financial      ‘†• Financial  NOTE   –‡•‡• ͺ Ͳ Ͷͷͻͻ ͳͶ ͷǡʹ͵͹ ͷʹͲ ʹͲͶ ͷǡʹ͵͹ Ȃ Ȃ ͵ͺͳ ͷͳ͸ Ȃ Ͷ ͹͵ͷ ͳͳ ͷǡͲͶͻ ͸͹ͷ  ͳͻʹ –Š‡”ƒ••‡–• ͷǡͲͶͻ ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• Ȃ ˜‡•–‡–’”‘’‡”–‹‡• Ȃ ͷ͵ʹ Šƒ”‡• ͸͹ʹ ‘”–‰ƒ‰‡Ž‘ƒ• Ȃ ͵  –Š‡”ƒ••‡–• ‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ˜‡•–‡–’”‘’‡”–‹‡• Šƒ”‡• ‘”–‰ƒ‰‡Ž‘ƒ• E n g ˜‹ƒŽ‘ƒ‡ ʹȂͳ͸͵ ͳ ͳʹǡͲͳͶ ͸ǡ͸ͻʹ ͵ͺͶ Ȃ ͳ ͸͹ Ȃ ͸ʹ ͺ͸ǡͶ͸Ͳ ͳʹǡͲͳ͵ ͳͲ ͵ͺͶ ͳͲ Ȃ ͸ǡ͸ͳͷ Ȃ ͺ͸ǡͶͷͲ Ȃ ͸ʹ Ͷ ͳͳǡ͹͸͸ ͸ǡ͹ͷʹ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ͷ͹ͺ Ȃ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• Ȃ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͷ͸ Ȃ ͷͺ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ͺ͸ǡʹͶͷ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ͳͳǡ͹͸͸ ͸ ͳ ͷ͹ͺ Ȃ ͸ǡ͸ͻͲ Ȃ ͺ͸ǡʹͶͶ Ȃ ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• ˜ƒ‹Žƒ„Ž‡ˆ‘”•ƒŽ‡ ƒ‹”˜ƒŽ—‡–Š”‘—‰Š’”‘ˆ‹–‘”Ž‘•• 0 2 _ B P F C  54 _ 16     2 liabilities assets liabilities assets 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  - 1 1 - FAIR   0 recorded recorded 5 _ v   1 recorded recorded . i n d d 

VALUE

B   5 at at 4   fair fair   at at     fair fair   value value  OF   value value    FINANCIAL    INSTRUMENTS   ‹–Š‡•‡’‡”‹‘†•Ǥ ‡‡ ‡‡‡˜‡Ž͵ ‡˜‡Žʹ ‡˜‡Žͳ ‡‡ ‡‡‡˜‡Ž͵ ‡˜‡Žʹ ‡˜‡Žͳ ǡ͸ ͻͷ͹ͷ͵Ͳͳͳͳǡͻ͸ͻ ͷǡ͵͵Ͳ ͻͻǡͷ͹͹ ͹ǡͲ͸ʹ ͳͳͳǡͺ͸ʹ ͷǡͳʹͳ ͻͻǡͶͷͺ ͹ǡʹͺ͵  ȋ ‘–‹—‡†Ȍ Ͷ ǡͳ ͷͶǡ͵͵ͷ ͹ͷ Ͷǡͳͳͳ ͳͶͻ ǡ͵ ͹ʹǡ͸ͺʹ Ͷ͹ ʹǡ͸͵ʹ ͵ ʹǡͲ͹͵ ͷʹ ʹǡͲͳͺ ͵ ǡͷ ͶͶǡͻ͵ͻ ͹Ͷ Ͷǡͺͷͺ ͹            ƒ” Š͵ͳǡʹͲͳ͸  ‡ ‡„‡”͵ͳǡʹͲͳͷ ˆƒ‹”˜ƒŽ—‡ ˆƒ‹”˜ƒŽ—‡ ‘–ƒŽ ‘–ƒŽ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 55 B ””‘„‘”ƒ–‹‘ ‘ˆ     – – – – Žƒ••‡–•’”‡˜‹‘—•Ž› ‰ƒ–‡†ˆ—†•Ǥ ‘–”ƒ ‘–”ƒ Ž‹ƒ„‹Ž‹–‹‡• ‘–ƒŽ Ž‹ƒ„‹Ž‹–‹‡• ‘–ƒŽ ˜‡•–‡ ˜‡•–‡ ” ” –Š‡ –Š‡ ƒ••‡–• ƒ••‡–• ȋŽ‹ƒ„‹Ž‹–‹‡•Ȍ ȋŽ‹ƒ„‹Ž‹–‹‡•Ȍ – – ‡ ‡ ‡”‹˜ƒ–‹˜‡•ǡ ‡”‹˜ƒ–‹˜‡•ǡ  – – ȋ ‘–‹—‡†Ȍ  –• •—„•‹†‹ƒ”‹‡• Šƒ˜‡ —–‹Ž‹œ‡† ‡˜‡Ž ͵ ‹’—–• –‘ ‹ƒŽƒ••‡–•ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡•‡ƒ•—”‡†ƒ– ƒ†ʹͲͳͷǤ ’”‘’‡”–‹‡• ’”‘’‡”–‹‡• ˜‡•–‡ ˜‡•–‡ ˆ‘”•ƒŽ‡ ˆ‘”•ƒŽ‡ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡ ”‡’”‡•‡–•–Š‡—”‡ƒŽ‹œ‡†‰ƒ‹•‘ˆ‘”‡‹‰‡š Šƒ‰‡Ǥ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER ƒ„‹Ž‹–›‘ˆ‹’—–•‹˜ƒŽ—ƒ–‹‘‡–Š‘†‘Ž‘‰‹‡•ƒ•‡˜‹†‡ ‡†„› ‘ ‹Ž‹–›‘ˆ‹’—–•‹˜ƒŽ—ƒ–‹‘‡–Š‘†‘Ž‘‰‹‡•‘”–‘‘–Š‡”ˆ‹ƒ ‹ƒ ”‡––”ƒ•ƒ –‹‘•Ǥ Š INSTRUMENTS ‡†‡’–‹‘”‡•–”‹ –‹‘•‘‹˜‡•–‡–•‹—–—ƒŽˆ—†•ƒ†•‡‰”‡  –Š”‘—‰ –Š”‘—‰Š ƒ‹”˜ƒŽ—‡ ƒ‹”˜ƒŽ—‡ ’”‘ˆ‹–‘”Ž‘•• ’”‘ˆ‹–‘”Ž‘•• ˆ‘”•ƒŽ‡ ˆ‘”•ƒŽ‡ ˜ƒ‹Žƒ„Ž‡ ˜ƒ‹Žƒ„Ž‡ FINANCIAL  Ȃ Ȃ Ȃ Ȃ ͻͻ Ȃ ͵ Ȃ ͳͲʹ Š OF ȋͳȌ Ȃ Ȃ Ȃ ȋʹͺ͸Ȍ Ȃ Ȃ Ȃ ȋʹͺ͹Ȍ  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER –Š”‘—‰Š –Š”‘—‰ ƒ‹”˜ƒŽ—‡ ƒ‹”˜ƒŽ—‡ ’”‘ˆ‹–‘”Ž‘•• ’”‘ˆ‹–‘”Ž‘•• ȂȂȋʹȌȂȂȂȂȂȋʹȌ  ȋͺȌ ȋͳȌ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ȋͻȌ ȂȂȂȂȂȂ͸Ȃ͸ ȏ͵Ȑ ȏ͵Ȑ VALUE 5 ȏʹȐ  5 B

d d n i . 1   FAIR v _ ȏͳȐ ȏͳȐ 5  0 - 1 1 - 16 6  1 0 ‹ ‘‡ ‹ ‘‡ 2 _ ‡–‡ƒ”‹‰• ‘–Š‡” ‘’”‡Š‡•‹˜‡ ͵ Ȃ ͷ Ȃ ͷͷ ȋʹͺȌ Ȃ Ȃ ͵ͷ ‡–‡ƒ”‹‰• ‘–Š‡” ‘’”‡Š‡•‹˜‡ Ȃ Ȃ ȋ͵Ȍ Ȃ ʹͶ ȋͺȌ Ȃ Ȃ ͳ͵ C F ”‡ ‘”†‡†ƒ– ‘•–„‡‹‰”‡‡ƒ•—”‡†ƒ–ˆƒ‹”˜ƒŽ—‡—•‹‰”‡ ‡–ƒ ƒ”‡–’”‹ ‡•™‹–Š—Ž–‹’Ž‡’”‹ ‹‰˜‡†‘”•‘”–Š‡Ž‹ˆ–‹‰‘ˆ” P ”ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ —” Šƒ•‡•ƒŽ‡•‡––Ž‡‡–•–Š‡””ƒ•ˆ‡”•‘—–‘ˆ‡˜‡Ž͵ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ʹ Ȃ Ȃ ȋͳͲȌ ͵ Ȃ Ȃ Ȃ ͹Ͷ Ȃ Ȃ Ȃ ȋͳȌ Ȃ Ͷ Ȃ ͳ Ȃ ȋͶȌ Ȃ Ȃ Ȃ Ȃ Ȃ ͹ͻ ȋͳͶȌ Ͷ Ͷ Ͷ –‡ȂȂȂȂȂȂȂȋͳȌȋͳȌ —” Šƒ•‡•ƒŽ‡•‡––Ž‡‡–•–Š‡” ”ƒ•ˆ‡”•‹–‘‡˜‡Ž͵ Ȃ Ȃ Ȃ Ȃ Ȃ Ȃ ͵ͳ Ȃ Ȃ Ȃ Ȃ ͳͺͲ Ȃ Ȃ ͳ ȋͶȌ ʹ Ȃ Ȃ Ȃ Ȃ Ȃ ʹͳʹ Ȃ Ȃ ʹ ȋͶȌ ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ    ‘–ƒŽ‰ƒ‹•ȋŽ‘••‡•Ȍ     ‘—–‘ˆ‘–Š‡” ‘’”‡Š‡•‹˜‡‹ ‘‡ˆ‘”‹˜‡•–‡–’”‘’‡”–‹‡•  ”ƒ•ˆ‡”•‹–‘‡˜‡Ž͵ƒ”‡†—‡’”‹ƒ”‹Ž›–‘†‡ ”‡ƒ•‡†‘„•‡”˜ƒ„  ”ƒ•ˆ‡”• ‘—– ‘ˆ ‡˜‡Ž ͵ ƒ”‡ †—‡ ’”‹ƒ”‹Ž› –‘ ‹ ”‡ƒ•‡† ‘„•‡”˜ _ 2 ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͺͻ ͳ ͷ͵ ͳ ͶǡͻͶ͵ ȋͷͳȌ ͻ ȋʹͻȌ ͷǡͲͳ͸ ƒŽƒ ‡ǡ‡†‘ˆ’‡”‹‘† ͳ Ȃ ͷ͸ Ͷ ͷǡͲͶͻ ȋͷʹȌ ͳͳ ȋʹ͵Ȍ ͷǡͲͶ͸ ȏͳȐ ȏʹȐ ȏ͵Ȑ  ‘†•Šƒ”‡• Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳͷ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ͺ͸ ͳ ͳͻ ͳ Ͷǡ͸ͳ͵ ȋʹ͸Ȍ Ȃ ȋʹͺȌ Ͷǡ͸͸͸ ƒŽƒ ‡ǡ„‡‰‹‹‰‘ˆ›‡ƒ” ͳͲ ͳ ͸͹ ͳ ͷǡʹ͵͹ ȋͶ͹Ȍ ͳͶ ȋʹ͹Ȍ ͷǡʹͷ͸  NOTE Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡’”‡•‡–•ƒ††‹–‹‘ƒŽ‹ˆ‘”ƒ–‹‘ƒ„‘—–ˆ‹ƒ ˆƒ‹”˜ƒŽ—‡‘ƒ”‡ —””‹‰„ƒ•‹•ˆ‘”™Š‹ Š–Š‡‘”’‘”ƒ–‹‘ƒ†‹ †‡–‡”‹‡ˆƒ‹”˜ƒŽ—‡ˆ‘”–Š‡–Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ ‘†•Šƒ”‡• Š”‡‡‘–Š•‡†‡† ƒ” Š͵ͳǡʹͲͳ͸      0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B55 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B56 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _        ˆ‹ƒ ‹ƒŽƒ••‡–•ƒ†ˆ‹ƒ ‹ƒŽŽ‹ƒ„‹Ž‹–‹‡• ƒ–‡‰‘”‹œ‡†ƒ•‡˜‡Ž Š‡ˆ‘ŽŽ‘™‹‰–ƒ„Ž‡•‡–•‘—–‹ˆ‘”ƒ–‹‘ƒ„‘—–•‹‰‹ˆ‹ ƒ–—‘„NOTE   E ’”‘’‡”–‹‡• ˜‡•–‡– Type n g 0 2 _  B of P F  asset C  56 _ 16 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1  6  - 1 1 - FAIR 0 5 _ v 1 . i n d d 

VALUE

Valuation ƒ”‡–”ƒ–‡•Ǥ –Š‡ƒ••‡–„ƒ•‡†‘ —””‡– ƒ’‹–ƒŽ‹œƒ–‹‘”ƒ–‡•ƒ’’Ž‹ ƒ„Ž‡–‘ ”‡˜‡”•‹‘ƒ”›ƒ†‘˜‡”ƒŽŽ ‡š’‡†‹–—”‡•Ȍƒ††‹• ‘—–ǡ ”ƒ–‡•ǡ ƒ’‹–ƒŽƒ†‘’‡”ƒ–‹‰ ˆ—–—”‡Ž‡ƒ•‹‰ƒ••—’–‹‘•ǡ”‡–ƒŽ ƒ•ˆ—–—”‡ ƒ•ŠˆŽ‘™•ȋ•— Šƒ• ”‡“—‹”‡•–Š‡—•‡‘ˆ‡•–‹ƒ–‡••— Š ˜ƒŽ—‡‘ˆ‹˜‡•–‡–’”‘’‡”–› Š‡†‡–‡”‹ƒ–‹‘‘ˆ–Š‡ˆƒ‹” ‡š’‡ –‡†ˆ—–—”‡‡– ƒ•ŠˆŽ‘™•Ǥ ƒ†‘†‡Ž•–Šƒ–†‹• ‘—– ‘‡š’‡ –‡† ƒ’‹–ƒŽ‹œƒ–‹‘”ƒ–‡• ’”‘’‡”–›˜ƒŽ—ƒ–‹‘‘†‡Ž•„ƒ•‡† ƒ”‡‰‡‡”ƒŽŽ›†‡–‡”‹‡†—•‹‰ ˜‡•–‡–’”‘’‡”–›˜ƒŽ—ƒ–‹‘• B 5 6  approach  OF   FINANCIAL   INSTRUMENTS unobservable Significant ƒƒ ƒ‡‹Š‡˜”‰ˆ͵ͺ†‡ ”‡ƒ•‡‹–Š‡‡š’‡ –‡† ‡‹‰Š–‡†ƒ˜‡”ƒ‰‡‘ˆ͵ǤͺΨ ƒ ƒ ›”ƒ–‡ †‡ ”‡ƒ•‡‹–Š‡ ͺǤ͵Ψ ƒ‰‡‘ˆͶǤ͵ΨȂ ‡˜‡”•‹‘ƒ”›”ƒ–‡ ‹ —–”– ƒ‰ˆ͵ͳ ͲͲ†‡ ”‡ƒ•‡‹–Š‡†‹• ‘—– ͳͲǤͲΨ ƒ‰‡‘ˆ͵ǤͳΨȂ ‹• ‘—–”ƒ–‡  ͵‹–Š‡ˆƒ‹”˜ƒŽ—‡Š‹‡”ƒ” Š›Ǥ  input •‡”˜ƒ„Ž‡‹’—–•—•‡†ƒ–’‡”‹‘†‡†‹‡ƒ•—”‹‰   Input ȋ ‘–‹—‡†Ȍ  value  key Inter ˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ†‡ ”‡ƒ•‡‹ˆƒ‹” ”‡˜‡”•‹‘ƒ”›”ƒ–‡™‘—Ž† ‹ ”‡ƒ•‡‹–Š‡ ˜ƒŽ—‡Ǥ ”‡•—Ž–‹ƒ‹ ”‡ƒ•‡‹ˆƒ‹” ”‡˜‡”•‹‘ƒ”›”ƒ–‡™‘—Ž† †‡ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ”ƒ–‡™‘—Ž†”‡•—Ž–‹ƒ ‹ ”‡ƒ•‡‹–Š‡†‹• ‘—– ‹ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ”ƒ–‡™‘—Ž†”‡•—Ž–‹ƒ fair †‡ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ‰‡‡”ƒŽŽ›”‡•—Ž–‹ƒ ˜ƒ ƒ ›”ƒ–‡™‘—Ž† ‹ ”‡ƒ•‡‹–Š‡‡š’‡ –‡† ‹ ”‡ƒ•‡‹ˆƒ‹”˜ƒŽ—‡Ǥ ‰‡‡”ƒŽŽ›”‡•—Ž–‹ƒ ˜ƒ ƒ ›”ƒ–‡™‘—Ž†   value unobservable Ǧ relationship  measurement   inputs between   and    116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM 57 B ‡ ƒ••‡– ƒƒ‰‡‡– ƒ† ”‡‹•—”ƒ ‡ † ƒƒ‰‡‡– •‡”˜‹ ‡•Ǥ  ƒŽ•‘ ‡ƒ”• ‡”ƒŽ ˆ‹ƒ ‹ƒŽ ”‡’‘”–‹‰Ǥ Š‡ ˆ‘ŽŽ‘™‹‰ • ‘ˆˆ‡”‹‰ Ž‹ˆ‡ ‹•—”ƒ ‡ǡ Š‡ƒŽ–Š ‹•—”ƒ ‡ǡ  ‹ƒ ‹ƒŽ ƒ† ƒ”‰‡•ƒǤ Š‡•‡ ”‡’‘”–ƒ„Ž‡ ‹–•Ǣ ‘‹Žǡ ‰ƒ• ƒ† ƒŽ–‡”ƒ–‹˜‡ ‡‡”‰‹‡•Ǣ ƒ† ›™‹–Š†‹˜‡”•‹ˆ‹‡†‹–‡”‡•–•‹—”‘’‡Ǧ„ƒ•‡† ‹–‹‡• ‘ˆ ‘™‡” ‹ƒ ‹ƒŽ ƒ† ƒŽ•‘ ‹ Ž—†‡• ‘—” ‡•ǡ„—–’”‹ƒ”‹Ž›ˆ”‘ƒƒ‰‡‡–ˆ‡‡•ǡ ‘Ž—–‹‘•ˆ‘”‹†—•–”›Ǣ ‡‡–ǡƒ‰‰”‡‰ƒ–‡•ƒ† †ƒ’”‹ƒ”‹Ž›™‹–Š‹–Š‡ƒ†˜‹ ‡•‡‰‡–‘ˆ–Š‡ ‰•‡‰‡–ǯ• ‘–”‹„—–‹‘–‘‡–‡ƒ”‹‰•ǤŠ‡ ˜‡•‡”˜‹ ‡•Ǥ Ǥ ‘ˆ‡–‡ƒ”‹‰•”‡•—Ž–‹‰ˆ”‘–Š‡‹˜‡•–‡–• •‡‰‡–•ǣ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  ‹–‡†–ƒ–‡•ƒ†—”‘’‡Ǥ INFORMATION  ƒ†‡‡”‰›ƒ†‡˜‹”‘‡–ƒŽ•‡”˜‹ ‡• POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 5 B

d d n i . 1 SEGMENTED v _ 5  0 - 1 1 - 17 6  1 0 2 _ ˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡•ƒ”‡–Ǥ ‡ƒ”•”‡˜‡—‡•ˆ”‘ƒ”ƒ‰‡‘ˆ• ™Š‹ Š ƒ”‡ Šƒ”‰‡† –‘ ‹–• —–—ƒŽ ˆ—†• ˆ‘” ‹˜‡•–‡– ƒ†˜‹•‘”› ƒ  ‹ƒ ‹ƒŽ‹•ƒˆ‹ƒ ‹ƒŽ•‡”˜‹ ‡• ‘’ƒ›‘’‡”ƒ–‹‰‹ƒƒ ƒ”‰‡•ƒ‹•Š‡Ž†–Š”‘—‰Šƒ”Œ‘‹– ‘Ǥƒ”‰‡•ƒ‹•ƒŠ‘Ž†‹‰ ‘’ƒ ‹ˆ‡ ‘ ‹• ƒ ˆ‹ƒ ‹ƒŽ •‡”˜‹ ‡• Š‘Ž†‹‰ ‘’ƒ› ™‹–Š”‡–‹”‡‡– •—„•‹†‹ƒ”‹‡ ƒ† ‹˜‡•–‡– ƒƒ‰‡‡– •‡”˜‹ ‡• ƒ† ‡‰ƒ‰‡† ‹„—•‹‡••‡•’”‹ƒ”‹Ž›‹ƒƒ†ƒǡ–Š‡ –Š ‘’ƒ‹‡•ƒ –‹˜‡‹˜ƒ”‹‘—••‡ –‘”•ǣ‹‡”ƒŽ•Ǧ„ƒ•‡†•’‡ ‹ƒŽ–›• ‘ ”‡–‡Ǣ –‡•–‹‰ǡ ‹•’‡ –‹‘ ƒ† ‡”–‹ˆ‹ ƒ–‹‘Ǣ‡Ž‡ –”‹ ‹–›ǡƒ–—”ƒŽ‰ƒ•ǡ ™‹‡• ƒ† •’‹” ”‡˜‡—‡•ˆ”‘ˆ‡‡• Šƒ”‰‡†–‘‹–•—–—ƒŽˆ—†•ˆ‘”ƒ†‹‹•–”ƒ–‹ C F

P _ 2    NOTE Š‡ ‘”’‘”ƒ–‹‘ǯ• ”‡’‘”–ƒ„Ž‡ ‘’‡”ƒ–‹‰ •‡‰‡–••‡‰‡–• ƒ”‡ ”‡ˆŽ‡ – ‹ˆ‡ ‘ǡ ‘™‡”  ‹ƒ ‹ƒŽǯ•’”‘˜‹†‡•ƒ„”‹‡ˆ†‡• ”‹’–‹‘‘ˆ–Š‡–Š”‡‡”‡’‘”–ƒ„Ž‡‘’‡”ƒ–‹‰ ƒƒ‰‡‡– •–”— –—”‡ ƒ† ‹–      Š‡ ‘Ž— ‡–‹–Ž‡† Dz‘”’‘”ƒ–‡dz ‹• ‘’”‹•‡† ‘•‘Ž‹†ƒ–‹‘‡Ž‹‹ƒ–‹‘‡–”‹‡•Ǥ ‘ˆ ‘”’‘”ƒ–‡ ƒ –‹˜ Š‡‘”’‘”ƒ–‹‘‡˜ƒŽ—ƒ–‡•–Š‡’‡”ˆ‘”ƒ ‡„ƒ•‡†‘–Š‡‘’‡”ƒ–‹ ‘–”‹„—–‹‘–‘‡–‡ƒ”‹‰•‘ˆ‡ƒ Š•‡‰‡–‹ Ž—†‡•–Š‡•Šƒ”‡ –Šƒ–‹ˆ‡ ‘ƒ† Šƒ˜‡‹‡ƒ Š‘–Š‡”Ǥ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B57 PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B58 C C

_ PART B Q

U POWER FINANCIAL CORPORATION A T 1 _ ‘‡–š• ͶͶ ͹Ͳ ͷ ͳͲͷ ͸͵Ͷ Ȃ ͳʹǡͳͷ͸ ͹ͻʹ Ͷ ȋʹͻȌ ȋ͸ͺȌ Ͷͳ ȋ͵͸Ȍ ͳǡͺͺʹ ͳʹǡͻ͹Ͳ ȋͳͺͺȌ Ȃ ͳǡͷͺͳ Ȃ ͻǡ͸͹ͺ ͹ǡͲͳͷ Ȃ ȋͷͳȌ ʹͶ ȋͻ͵Ȍ ͶǡͲ͹͵ ͵ ʹͳͲ Ȃ ͷͳ͵ Ȃ ʹ͵ ȋͶʹȌ Ȃ Ȃ ʹ͸ʹ ͸ͺͲ Ȃ  ͳͳǡ͸͹ʹ Ȃ ͹ͺ Ȃ Ȃ ͷ͸͸ ͸͹ͻ ͹ʹ͵ ʹʹͺ A Ȃ Ȃ ͶͶ ͳǡʹͷͶ Contribution ͳʹǡ͵ͶͲ  ‘‡–ƒš‡• ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• ƒ”‰‡• ͳǡ͵ͷͲ Šƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–•‹ ͻǡ͸͹ͺ ͶǡͲ͹ͳ ͹ǡͲͳͷ ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡†  ‘–ƒŽ‡š’‡•‡• ‹ƒ ‹‰ Šƒ”‰‡• ’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‘‹••‹‘• ‹ˆ‡ ‘     ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”• Expenses ‘–ƒŽ”‡˜‡—‡• ‡‡‹ ‘‡ ˜‡•–‡–‹ ‘‡ǡ‡– ”‡‹—‹ ‘‡ǡ‡– Revenues Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳ͸ CONTRIBUTION NOTE   ͷ ͸ ͳͺ ͹Ȍ ͷ͸Ͷ ȋ͹͵Ȍ ȋͳͺͺȌ ͳ͸ͻ ͸ͷ͸  E n ttributable g ‘Ž‘–‘Ž† ”‘ƒ‹•‘‹–• ʹ ȋͺȌȋȌ ȋͳ ͺͳ ȋͶȌ ȋ͸ͶȌ ȋͳͺͺȌ Ȃ Ȃ ʹͳͲ ͳʹ ͸͸ͺ Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ†‹ ‘‡–ƒš‡• ‘•ƒ‡‘†”ͶͻͳͲȋͺȌȋʹʹͷͻ ͵ͳ ʹ͹Ͷ ȋ͹ʹȌ ȋ͵ʹȌ ͵ͳ ȋͳͺͺȌ Ȃ Ȃ ͳͲͲ ͸ͻ Ȃ Ͷͳͻ ʹ͵͹ Ȃ ‘‘•Šƒ”‡Š‘Ž†‡”• ‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡Š‘Ž†‡”• ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–• 0 2 _ B P F C  58 _ 17   2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6  to   - to 1 1  -  SEGMENTED net 0 5 _ v   TO 1 earnings . i n d d  NET

B 5 8   EARNINGS  INFORMATION   ͷ ͸ ͳͺ ͹Ȍ ͷ͸Ͷ ȋ͹͵Ȍ ȋͳͺͺȌ ͳ͸ͻ ͸ͷ͸ ȋ ‘–‹—‡†Ȍ     ƒ ‘’”– ‘–ƒŽ ‘”’‘”ƒ–‡ ͺͲȌ Ͷ 116-05-12 2:01PM 6 - 0 5 - 1 2

2 : 0 1

P M M P

1 0

PART B : 2

POWER FINANCIAL CORPORATION 2 1 - 5 0 - 6 116-05-12 2:01 PM ʹͲͻ 59 B ‘”’‘”ƒ–‡ ‘–ƒŽ ƒ  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER    ŽŽ‘ ƒ–‹‘‘ˆ‰‘‘†™‹ŽŽƒ† ‡”–ƒ‹ ‘•‘Ž‹†ƒ–‹‘ƒ†Œ—•–‡–•Ǥ ȋ ‘–‹—‡†Ȍ ͹͸ͻ ʹͲ͵ ʹ͹ ȋͶ͵Ȍ ͻͷ͸   INFORMATION  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER EARNINGS   9 NET  5 B

earnings d TO   d n  i . 1 net SEGMENTED  v  _ 5 to  ͵ͻͻǡͻͻͶ ͳͶǡͳͲͶ ʹǡ͸ͳͲ ͻʹʹ Ͷͳ͹ǡ͸͵Ͳ  ͵ͻͲǡ͵ͲͶ ͳͶǡͲ͵ͺ ʹǡͷͶ͵ ͻͲͻ ͶͲ͹ǡ͹ͻͶ   to 0  - ȏͳȐ ȏͳȐ 1 1 -   17 6 ASSETS   1 0 2 _ C F ‘–ƒŽƒ••‡–•‘ˆ‹ˆ‡ ‘ƒ† ‘’‡”ƒ–‹‰•‡‰‡–•‹ Ž—†‡–Š‡ƒ P ‘Ǧ ‘–”‘ŽŽ‹‰‹–‡”‡•–•‡”’‡–—ƒŽ’”‡ˆ‡””‡†•Šƒ”‡Š‘Ž†‡”•‘‘•Šƒ”‡Š‘Ž†‡”• Ȃ ʹͻ͸ Ͷ͹͵ Ȃ ͺͶ ͳͳͻ Ȃ Ȃ ʹ͹ ͵͵ ȋ͵ͲȌ ȋͶ͸Ȍ ͵ͷͲ ͵͵ ͷ͹͵ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Ȍƒ†ƒ••‘ ‹ƒ–‡•’‘Ž‹ ›Š‘Ž†‡”• ͳ͸ͲǡͻͲ͵ ͺǡͶʹ͸ ʹ͹͹ ͳͻͺǡͳͻͶ Ȃ Ȃ ͺ͹ͳ Ȃ ʹǡ͸ͳͲ ͳ͹ͲǡʹͲͲ Ȃ ͳͺ ʹǡͻͲͷ Ȃ ͳͻͺǡͳͻͶ ƒ† ƒ•Š‡“—‹˜ƒŽ‡–•Ȍƒ†ƒ••‘ ‹ƒ–‡•’‘Ž‹ ›Š‘Ž†‡”• ͳͷͺǡͻͻ͹ ͺǡʹͶͻ ʹ͸ͷ ͳͻ͵ǡͲͲͳ Ȃ Ȃ ͺͶ͵ Ȃ ʹǡͷͶ͵ ͳ͸ͺǡͲͺͻ Ȃ ʹ͹ ʹǡͺ͵ͷ Ȃ ͳͻ͵ǡͲͲͳ ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡•ǡƒ†‹ ‘‡–ƒš‡•Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘•ƒ†ƒ••‘ ‹ƒ–‡• ͻͻ͵ Ȃ ʹͷͺ Ȃ Ȃ ʹ͹ ȋͶʹȌ ͳǡ Ȃ ʹ͹ _ ttributable 2  ͹͸ͻ ʹͲ͵ ʹ͹ ȋͶ͵Ȍ ͻͷ͸ ȏͳȐ  ‡ ‡„‡”͵ͳǡʹͲͳͷ ˜‡•–‡†ƒ••‡–•ȋ‹ Ž—†‹‰ ƒ•Š ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• –Š‡”ƒ••‡–• –ƒ‰‹„Ž‡ƒ••‡–•ƒ†‰‘‘†™‹ŽŽ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—† ‘–ƒŽƒ••‡–• ‹ˆ‡ ‘ ͳͲǡͶͲͻ  Ͷǡ͹ͺͶ ͵Ͳǡʹͳͳ ƒ”‰‡•ƒ ͺͻͶ Ȃ ‘”’‘”ƒ–‡ ‘–ƒŽ Ȃ Ȃ ͳͷǡͳͻ͵ ͵͵ ͵ͳǡͳ͵ͺ A TOTAL ƒ” Š͵ͳǡʹͲͳ͸ ˜‡•–‡†ƒ••‡–•ȋ‹ Ž—†‹‰ ƒ•Š ˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ‘”’‘”ƒ–‹‘• –Š‡”ƒ••‡–• –ƒ‰‹„Ž‡ƒ••‡–•ƒ†‰‘‘†™‹ŽŽ ˜‡•–‡–•‘ƒ ‘—–‘ˆ•‡‰”‡‰ƒ–‡†ˆ—† ‘–ƒŽƒ••‡–• ͳͲǡʹ͵Ͷ ‹ˆ‡ ‘ Ͷǡͺͳͳ  ʹ͹ǡͺͲ͹ ƒ”‰‡•ƒ ͻ͹ͺ Ȃ ‘”’‘”ƒ–‡ Ȃ Ȃ ‘–ƒŽ ͳͷǡͲͶͷ ͵ͻ ʹͺǡͺʹͶ Expenses ‘–ƒŽ’ƒ‹†‘” ”‡†‹–‡†–‘’‘Ž‹ ›Š‘Ž†‡”•‘‹••‹‘•’‡”ƒ–‹‰ƒ†ƒ†‹‹•–”ƒ–‹˜‡‡š’‡•‡• ‹ƒ ‹‰ Šƒ”‰‡•‘–ƒŽ‡š’‡•‡•ƒ”‹‰•„‡ˆ‘”‡‹˜‡•–‡–•‹Œ‘‹–Ž› ‘–”‘ŽŽ‡† ͻǡͺͺͻŠƒ”‡‘ˆ‡ƒ”‹‰•ȋŽ‘••‡•Ȍ‘ˆ‹˜‡•–‡–•‹ ͳǡʹͲͷ  ‘‡–ƒš‡•Contribution Ȃ ʹͳ͵ ͷͳͷ ͹͹ Ȃ ͳͳǡ͸ͺ͸ Ȃ ʹ͸͹ ʹ͵ ͷͲ͵ Ȃ ͳʹ ʹʹͶ Ȃ ͻǡͺͺͻ ͳǡͶ͵Ͳ Ȃ Ȃ ͷͷ ȋͶͷȌ ȋʹͻȌ Ͷ ͹͵͹ ͳʹǡͳ͸Ͳ Ȃ ͳͲͶ ͳ ʹͺͲ  NOTE CONTRIBUTION Š”‡‡‘–Š•‡†‡†ƒ” Š͵ͳǡʹͲͳͷRevenues ”‡‹—‹ ‘‡ǡ‡– ˜‡•–‡–‹ ‘‡ǡ‡– ‡‡‹ ‘‡‘–ƒŽ”‡˜‡—‡•     ‹ˆ‡ ‘  ͸ǡͻ͵ʹ ͶǡͶͺͻ ƒ”‰‡• ͳʹǡ͸͹ͻ ͳǡʹͷͺ ͷͷ Ȃ ͹͸ͳ ͹Ͳ͸ Ȃ Ȃ Ȃ Ȃ ȋʹͳȌ Ȃ Ͷǡͷʹ͵ ȋ͹ͳȌ ȋͷͲȌ ͸ǡͻ͵ʹ ͳ͵ǡ͵͸ͻ ͳǡͻͳͶ ƒ”‹‰•„‡ˆ‘”‡‹ ‘‡–ƒš‡• ͻͻ͵ ʹͷͺ ʹ͹ ȋͶʹȌ ͳǡʹ͵͸ 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B59 Page intentionally left blank.

B 60 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng02_PFC_2016-11-05_v1.inddCC_QUAT1_Eng02_PFC_2016-11-05_v1.indd B60B60 116-05-126-05-12 2:012:01 PMPM M P

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 1 C erent page erent and ows as at ect the current ect the current to the number x refers “C” to the number of such page refers x and cash fl nancial position FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER fi nancial performance, PART C Great-West Lifeco Inc. Lifeco Great-West looking statements. looking statements based on certain assumptions and refl will not prove to be accurate, that assumptions may not be correct and that not be correct to be accurate, that assumptions may will not prove PAGE C 36 PAGE PAGE C 2 PAGE that could cause actual results to differ materially from the content of the content of materially from to differ that could cause actual results in this document and the page number without any prefi any in this document and the page number without uncertainties that may be general or specific and which give rise to the uncertainties rise to the be general or specific and which give that may for the periods ended on certain the periods for about the information dates and to present forward-looking statements, the material factors and assumptions that were statements, the material factors and assumptions that were forward-looking statements, please see the updating the content of forward-looking for on forward- and not to put undue reliance factors and assumptions carefully possibility that expectations, forecasts, predictions, projections or conclusions or conclusions projections predictions, possibility that expectations, forecasts, numbers. A page number with the prefi A page number numbers. Certain statements in the such subsidiary. and publicly disclosed by prepared applied in making the forward-looking statements, and the subsidiary’sapplied in making the forward-looking policy attached documents, including the section entitled Cautionary Note Regarding attached documents, other than statements of historical fact, are forward- of historical fact, are attached documents, other than statements in understanding the of assisting the reader the purposes for provided are for not be appropriate is cautioned that such statements may and the reader of such page in the original document issued by Great-West Lifeco Inc. Lifeco by Great-West of such page in the original document issued expectations of the subsidiary statements as set forth Forward-looking therein. objectives, strategic goals and priorities will not be achieved. strategic goals and priorities will not be achieved. objectives, other purposes. For further by the subsidiary provided as to the material factors information By its nature, forward-looking information is subject to inherent risks and risks and is subject to inherent information forward-looking By its nature, is cautioned to consider these The reader Information. Forward-Looking Please note that the bottom of each page in PartPlease note that the bottom of each page C contains two diff POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Financial Statements and Notes Financial Statements Management’s Discussion and Analysis and Discussion Management’s subsidiary’s fi subsidiary’s to the future expectations and plans relating management’s current The attached documents concerning Great-West Lifeco Inc. are documents documents Inc. are Lifeco The attached documents concerning Great-West 1 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G _ 3 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C1 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C2 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 _ by IFRS. used byothercompanies.Refertotheappropriatereconciliationsofthesenon-IFRSfinancialmeasuresprescribed non-IFRS financialmeasuresdonothavestandardmeaningsprescribedbyIFRSandaredirectlycomparabletosimilarmeasure investors withadditionalmeasuresofperformancetohelpassessresultswherenocomparableIFRSmeasureexists. However, "assets underadministration"andothersimilarexpressions.Non-IFRSfinancialmeasuresareusedtoprovidemanagement and are notlimitedto,"operatingearnings","constantcurrencybasis","premiumsanddeposits","sales","assetsundermanagement This MD&A containssomenon-IFRSfinancialmeasures. Terms bywhichnon-IFRSfinancialmeasures areidentifiedinclude,but CAUTIONARY NOTEREGARDINGNON-IFRSFINANCIAL MEASURES of newinformation,futureeventsorotherwise. specifically requiredbyapplicablelaw, theCompanydoesnotintendtoupdateanyforward-lookingstatementswhetherasaresu factors, uncertaintiesandpotentialeventscarefullynottoplaceunduerelianceonforward-lookingstatements.Other tha which, alongwithotherfilings,isavailableforreviewatwww.sedar.com. The readerisalsocautionedtoconsidertheseand Company's 2015 Annual MD&A under"RiskManagementandControlPractices""SummaryofCritical Accounting Estimates", is notexhaustive,andtheremaybeotherfactorslistedinfilingswithsecuritiesregulators,includingset out customer andemployeerelationsorcreditarrangements. The readeriscautioned thattheforegoinglistofassumptionsandfac ability tocompletestrategictransactionsandintegrateacquisitionsunplannedmaterialchangestheCompany's facilitie regulatory proceedings,catastrophicevents,continuityandavailabilityofpersonnelthirdpartyserviceproviders,theCo regulations, changesinaccountingpoliciesandtheeffect ofapplyingfutureaccountingpolicychanges,unexpectedjudicialor security (includingcyberattacks),paymentsrequiredunderinvestmentproducts,changesinlocalandinternational laws and to executestrategicplansandchangesplans,technologicalchanges,breachesorfailureofinformationsystems an statements includecustomerresponsestonewproducts,impairmentsofgoodwillandotherintangibleassets,theCompany'sabili Other importantfactorsandassumptionsthatcouldcauseactualresultstodiffer materiallyfromthosecontainedinforward-lo on factorsandeventsthatarenotwithinthecontrolofCompanythereisnoassurancetheywillprovetobecorre other generaleconomic,politicalandmarketfactorsinNorth America andinternationally. Manyoftheseassumptionsarebased and foreignexchangerates,investmentvalues,hedgingactivities,globalequitycapitalmarkets,businesscompetition policy lapserates,reinsurancearrangements,liquidityrequirements,capitalcreditratings,taxes,inflation,i prices forproductsprovided,saleslevels,premiumincome,feeexpensemortalityexperience,morbidityexperie substantially intheircurrentstate,including,withoutlimitation,withrespecttocustomerbehaviour, theCompany'sreputati contained hereinincludetheassumptionthatbusinessandeconomicconditionsaffecting theCompany’s operationswillconti forward-looking statements.Materialfactorsandassumptionsthatwereappliedinformulatingtheinformation performance, andthereaderiscautionedthatactualeventsresultscoulddiffer materiallyfromthoseexpressedorimplied financial servicesindustrygenerally, includingtheinsuranceandmutualfundindustries. They arenotguaranteesoffuture inherently subjectto,amongotherthings,risks,uncertaintiesandassumptionsabouttheCompany, economicfactorsandthe forecasts, predictions,projectionsandconclusionsaboutfutureeventsthatwerecurrentatthetimeofstatementsare with respecttotheexpectedbenefitsofacquisitionsanddivestitures.Forward-lookingstatementsarebasedonexpectations, growth rates),ongoingbusinessstrategiesorprospects,andpossiblefutureactionsbytheCompany, includingstatementsmade about theCompany'soperations,business,financialcondition,expectedperformance(includingrevenues,earningsor "estimates" andothersimilarexpressionsornegativeversionsthereof. These statementsmayinclude,withoutlimitation,stat depend uponorrefertofutureeventsconditions,includewordssuchas"expects","anticipates","intends","plans","be This MD&A maycontainforward-lookingstatements.Forward-lookingstatementsincludethatarepredictiveinnature, CAUTIONARY NOTEREGARDINGFORWARD-LOOKING INFORMATION Company's 2015 Annual Report. 31, 2016. statements fortheperiodendedMarch Also refertothe2015 Annual MD&A andconsolidatedfinancialstatementsinth dollars unlessotherwiseindicated. This MD&A shouldbereadinconjunctionwiththeCompany'scondensedconsolidatedfinancia accordance withInternationalFinancialReportingStandards(IFRS)unlessotherwisenotedandarepresentedinmillionsofCana The consolidatedfinancialstatementsofLifeco,whicharethebasisfordatapresentedinthisreport,havebeenprepared BASIS OFPRESENTATION AND SUMMARY OF ACCOUNTING POLICIES three majorreportablesegmen

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C 2 MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THEPERIODENDEDMARCH31,2016 DATED: MAY 5,2016 4   Management's Discussionand Analysis on, market mpany's ements lieves", nterest inthe oking other dian nce, n as tors nue by ct. ty s, 's ", e d lt s 116-05-11 3:12PM l 6

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM ct the ss of the services 3 ded group ment advice ompany has 2015 alculate total C ne growth. March 31 ontract liabilities. investment income, ness of the Company 14.7% 16.0% 665 662 3,8142,001 2,981 2,035 1,333 1,258 0.6880.32620.07 0.702 0.326 17.68 5,532 9,889 11,977 11,948 15,48028,122 12,938 25,548 2015 252,480652,415 238,650 560,102 619,981 556,893 Dec. 31 $ 399,935 $ 381,331 $6,162$6,932 $1,212,517 $1,176,874 $ 25,260 $ 22,888 $ 683 $ 700 14.0% 698 3,689 2,238 0.625 0.346 19.29 9,678 16,354 29,994 2016 237,984 628,229 558,290 March 31 March 31 As at or for the three months ended As at or for the three $7,015 $ 24,531 $620 Management's Discussion and Analysis and Discussion Management's  (1) 5 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER (4) (1) (3) (5) (2) (4) (1) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L premiums and deposits (a non-IFRS financial measure). This measure provides useful information as it is an indicator of top li This measure provides useful premiums and deposits (a non-IFRS financial measure). safekeeping, collecting investing activities. Services provided relating to assets under administration include recordkeeping, Administrative services are an important aspect of the overall busi settling of transactions or other administrative services. and should be considered when comparing volumes, size and trends. insurance administrative services only (ASO) contracts and deposits on proprietary mutual funds and institutional accounts to c insurance administrative services only (ASO) contracts and deposits on proprietary mutual These assets are beneficially owned by clients and the Company does not dire for which the Company earns fee and other income. Other assets under administration (a non-IFRS financial measure) includes assets where the Company only provides administration Other assets under administration (a non-IFRS financial measure) includes assets where the In addition to premiums and deposits reported in the financial statements, the Company includes premium equivalents on self-fun In addition to premiums and deposits reported in the financial statements, the Company includes insurance and investment c Paid or credited to policyholders includes the impact of changes in fair values of assets supporting Allocation Methodology" section. Return on common shareholders' equity is detailed within the "Capital provides an indicator of the size and volume of the overall busine assets under management (a non-IFRS financial measure) Total in respect of assets under management include the selection of investments, the provision of invest Services provided Company. funds where the C This includes internally and externally managed and discretionary portfolio management on behalf of clients. oversight over the investment policies. products) Group products Individual products W Net earnings Proprietary mutual funds and institutional net assets Proprietary mutual funds and institutional Dividends paid Book value Basic earnings G Self-funded premium equivalents (Administrative services only contracts) Self-funded premium equivalents (Administrative Policyholder deposits (segregated funds): Policyholder deposits Net premium income (Life insurance, guaranteed annuities and insured health (Life insurance, guaranteed annuities and Net premium income Proprietary mutual funds and institutional deposits Proprietary mutual funds and institutional _ Selected consolidated financial information financial information Selected consolidated except for per share amounts) (in Canadian $ millions, Total assets per financial statements $ 390,245 Premiums and deposits reported in the financial statementsPremiums and deposits reported in the 12,942 Amounts reported in the financial statements Amounts reported Other assets under administration Per common share 3

(5) (1) (2) (3) (4) CONSOLIDATED OPERATING RESULTS OPERATING CONSOLIDATED 0 Premiums and deposits: Total equity Total assets under management Total Total assets under administration $1,186,519 Total premiums and deposits Total Fee and other incomePaid or credited to policyholders 1,254 Return on common shareholders' equity Earnings Net earnings - common shareholders g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C3 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C4 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 share ($0.700diluted)ayearagoand$0.688percommon($0.686inthepreviousquarter. represents $0.625percommonshare($0.623diluted)forthefirstquarterof2016comparedto$0.702 $620 millioncomparedto$700ayearagoand$683inthepreviousquarter. Onapersharebasis,this Lifeco's netearningsattributabletocommonshareholdersforthethreemonthperiodendedMarch 31, 2016were West Financial)andPutnam Investments,LLC(Putnam),togetherwithLifeco’s Corporateoperatingresults. Company (CanadaLife)andIrishLifeGroupLimited(IrishLife);Great-West Life& Annuity InsuranceCompany(Great- Life) anditsoperatingsubsidiaries,LondonLifeInsuranceCompany(LondonLife), The CanadaLife Assurance Consolidated netearningsofLifecoincludethe The Great-West Life Assurance Company(Great-West NET EARNINGS _ regarding netearningsisincludedinthe"SegmentedOperatingResults"section. The informationinthetableaboveisasummaryofresultsfornetearningsCompany. Additional commentary

E Net earnings-commonshareholders Canada Europe United States Lifeco Corporate e anns-cmo hrhles$620 $ Net earnings-commonshareholders n g 0 Wealth Management Individual Insurance Canada Corporate Group Insurance U.S. Corporate Insurance &Annuities Asset Management Europe Corporate Reinsurance 3 _ C G W 4 L _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 4 6  Management's Discussionand Analysis $92 March 31 2016 For thethreemonthsended 101 276 226 287 (25) 16 67 63 90 63 (2) (2) (6) $51$77 $683$700 Dec. 31 2015 1 122 119 2 121 125 6 299 262 3 216 234 0 286 303 8(9) 109 18 74 12 41 6120 86 377 73 2 (1) (2) 4 (7) (4) 7 (6) (7) March 31 2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 5 . These . C " Management's Discussion and Analysis and Discussion Management's  effect of currency translation fluctuations effect " and " 7 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER impact of currency movement " , " POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L constant currency basis " W G _ 3

Foreign Currency such of terms are used to highlight the impact of foreign exchange on results, Throughout this document, a number as: Equity Markets lower operates, average equity market levels in the first quarter of 2016 were In the regions where the Company the quarter The change in average market levels and market volatility during compared to the same period in 2015. the first of approximately $13 million ($8 million positive impact on earnings in had a negative impact on net earnings to expectation, related to asset-based fee income and the costs related quarter of 2015), relative to the Company's by the Company. benefits within certain wealth management products offered guarantees of death, maturity or income earnings impacted by approximately $7 million ($7 million positive impact on In addition, net earnings were negatively Canada Corporate Asset Management and seed money investments held in the in the first quarter of 2015) related to business units. 14% in to the first quarter of 2015, average equity market levels were down by Comparing the first quarter of 2016 by 13% in broader Europe (as 500), in the U.S. (as measured by S&P TSX), by 5% Canada (as measured by S&P The 12% in the U.K. (as measured by FTSE 100), which impacted fee income. measured by Eurostoxx 50) and by 8% quarter of 2016 up 4% in Canada and 1% in the U.S.; however were down major equity indices finished the first compared to December 31, 2015. in broader Europe and 1% in the U.K., Interest Rate Environment of but did not impact the range decreased during the quarter, where the Company operates Interest rates in countries impact change in interest rates had no material The net tested through the valuation process. interest rate scenarios ratio. and Surplus Requirements (MCCSR) on the Minimum Continuing Capital on net earnings or disciplined processes rate fluctuations, the Company follows the Company's exposure to interest In order to mitigate insurance in fair values of bonds backing As a result, the impact of changes and liability cash flows. for matching asset change in the insurance contract by a corresponding offset through profit or loss is mostly contract liabilities recorded liabilities. ended March 31, 2016 financial statements for the period the Company's condensed consolidated Refer to note 5 to sensitivity to interest rate fluctuations. for a further description of the Company's 0 g MARKET IMPACTS MARKET n measures have been calculated using the average or period end rates, as appropriate, in effect at the date of the as appropriate, in effect measures have been calculated using the average or period end rates, This non-IFRS measure provides useful information as it facilitates the comparability of results comparative period. between periods. the British pound and the euro U.S. dollar, During the first quarter of 2016, the average currency translation rate of the net The overall impact of currency movement on the Company’s increased compared to the first quarter of 2015. compared to translation 31, 2016 was an increase of $23 million earnings for the three month period ended March rates a year ago. From December 31, 2015 to March 31, 2016, the market rates at the end of the reporting period used to translate U.S. The movements in end of period Canadian dollar decreased. British pound and euro assets and liabilities to the dollar, of foreign operations, including related market rates resulted in unrealized foreign exchange losses from the translation income. hedging activities, of $975 million during the quarter recorded in other comprehensive of Foreign Currency" periods are detailed in the "Translation rates for the reporting period and comparative Translation section. E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C5 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C6 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 contributions fromthenewplan. This measureprovidesanindicatorofnewbusinessgrowth. wealth managementproducts,salesincludeassetstransferredfrompreviousplanprovidersandtheexpectedannual proprietary mutualfundsandinstitutionalaccountsaswelldepositsonnon-proprietaryfunds.Forgroup on existingpolicies.Forindividualwealthmanagementproducts,salesincludedepositssegregatedfund annualized premiumsandpremiumequivalentsfornewpoliciesbenefitscoveredorexpansionofcoverage and annualizedpremiumsexpectedinthefirsttwelvemonthsofplan.Groupinsurance ASO salesreflect Sales (anon-IFRSfinancialmeasure)forrisk-basedinsuranceandannuityproductsinclude100%ofsinglepremium deposits onproprietarymutualfundsandinstitutionalaccounts. This measureprovidesanindicatoroftoplinegrowth. administrative servicesonly(ASO)contracts,depositsonindividualandgroupsegregatedfundproductsaswell products netofcededreinsurance(asdefinedunderIFRS),premiumequivalentsonself-fundedgroupinsurance Total premiumsanddeposits(anon-IFRSfinancialmeasure)includeonrisk-basedinsuranceannuity SALES DEPOSITS AND PREMIUMS AND impact. refinements. InCanada,anumberofsmallerassumptionchangescontributedtothe$9millionpositivenetearnings In Europe,netearningswerepositivelyimpactedbyactuarialassumptionchangesof$39millionduetomodeling impact of$48million,comparedto$82millionforthesamequarterlastyearand$97previousquarter. During thefirstquarterof2016,Companyupdatedanumberassumptionsresultinginpositivenetearnings CHANGES ACTUARIAL ASSUMPTION oa ae 48,000 $ Total sales _ section. Additional commentaryregardingpremiumsanddepositssalesisincludedinthe"SegmentedOperating Results" The informationinthetableaboveisasummaryofresultsforCompany'stotalpremiumsanddeposits sales. (1)

E oa rmusaddpst 29,994 $ Sales Total premiumsanddeposits United States Europe Canada Premiums anddeposits n Comparativefiguresforsales(anon-IFRSfinancialmeasure)havebeenrestatedtoimproveconsistencyacrosstheCompany'sb Europe -Insurance&Annuities g 0 United States Canada Asset Management Financial Services Reinsurance Insurance &Annuities Group Insurance Wealth Management Individual Insurance 3 units. _ C G W 6 L _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 0 6 - 0 5 (1) _ v 1 . i n d d

C 6 8  $3,268 $1,236 Management's Discussionand Analysis March 31 March 31 2016 2016 40,158 4,574 16,117 12,388 3,729 7,841 2,167 5,674 6,036 2,074 2,726 For thethreemonthsended For thethreemonthsended 909$27,762 $ 39,039 $ ,9 3,183 $ 3,492 $ 812$25,548 $ 28,122 $ ,0 1,154 $ 1,304 $ Dec. 31 Dec. 31 2015 2015 16020,123 31,630 ,1 4,456 3,917 59612,962 10,232 15,956 10,869 ,8 2,730 5,087 ,5 6,673 1,513 5,160 6,056 1,559 4,497 ,1 5,913 1,948 2,811 6,110 2,002 2,804 March 31 March 31 2015 2015 (1) usiness 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 7 C 2015 March 31 (1) 1 78 87 (30) (27) (844) 2,953 1,670 1,536 1,700 1,563 2015 Dec. 31 $ 826 $ 4,489 $1,623$1,475 (7) 51 (27) 2,410 1,673 1,700 For the three months ended For the three months 2016 March 31 March 31 $1,656 Management's Discussion and Analysis and Discussion Management's  9 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER which positively impacted common shareholders' net earnings by $14

POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G _ Net investment income $ 4,083 Changes in fair value through profit or loss Changes in fair value Investment expenses Regular net investment income Regular net investment Regular investment income Regular investment Net realized gains Investment income earned (net of investment properties expenses) Investment income earned losses on loans and receivables Allowances for credit Net investment income 3

million ($6 million net charge in the first quarter of 2015), primarily driven by upgrades to certain holdings related to million ($6 million net charge in the first quarter of 2015), primarily driven the U.K. hospitality industry. which is a tenant in properties that the Company has issued mortgages on, filed for April 2016, a U.K. retailer, In late The Company is assessing the impact on its holdings related to this retailer, administration (insolvency protection). however does not expect the impact to be material. Net investment income in the first quarter of 2016, which includes changes in fair value through profit or loss, decreased Net investment income in the first quarter of 2016 were The changes in fair values in the first quarter quarter last year. by $406 million compared to the same due to to an increase of $2,953 million for the first quarter of 2015, primarily an increase of $2,410 million compared yields in the first quarter of 2016 compared to the same quarter last year. a smaller decline in Canadian bond value first quarter of 2016 of $1,673 million, which excludes changes in fair Regular net investment income in the The increase was primarily million compared to the same quarter last year. through profit or loss, increased by $137 dollar, as the U.S. dollar and British pound strengthened against the Canadian due to the impact of currency movement include gains on available-for-sale securities of $31 by lower net realized gains. Net realized gains partially offset to $74 million for the same quarter last year. million for the first quarter of 2016 compared quarter, of 2016 increased by $3,257 million compared to the previous Net investment income in the first quarter of values of $2,410 million in the first quarter of 2016 compared to net decreases primarily due to net increases in fair in fair values during the first quarter was primarily due to The net increase $844 million in the previous quarter. net decrease in fair values in the previous quarter was primarily due to increases decreasing global bond yields, while the in U.K. and U.S. government bond yields. Credit Markets experienced net charges on impaired investments, including dispositions, In the first quarter of 2016, the Company recovery in the first quarter net earnings by $4 million ($3 million net which negatively impacted common shareholders’ in a net decrease in provisions for future of 2015). Changes in credit ratings in the Company's bond portfolio resulted credit losses in insurance contract liabilities, 0 g NET INVESTMENT INCOME INCOME NET INVESTMENT n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C7 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C8 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 which theCompanyprovidesgroupbenefitplanadministrationonacost-plusbasis. Company earnsinvestmentmanagementfeesonassetsmanagedandotherfees,aswell ASO contracts,under fee-for-service basis. The mostsignificantoftheseproductsaresegregatedfundsandmutualfunds,forwhichthe In additiontoprovidingtraditionalrisk-basedinsuranceproducts,theCompanyalsoprovidescertainproductsona FEE AND OTHERINCOME _ The amountsdonotincludebenefitpaymentsfor ASO contractsorsegregatedfundsandmutualfunds. value ofcertaininvestedassetssupportingthoseliabilitiesaswellchangesintheprovisionforfuturecredit losses. in insuranceandinvestmentcontractliabilities. The changesincontractliabilitiesincludetheimpactoffair payments, segregatedfundguaranteepolicyholderdividendandexperiencerefundpayments changes Amounts paidorcreditedtopolicyholdersincludelifeandhealthclaims,policysurrenders,annuity maturity PAID ORCREDITEDTO POLICYHOLDERS regarding feeandotherincomeisincludedinthe"SegmentedOperatingResults"section. The informationinthetableaboveisasummaryofgrossfeeandotherincomeforCompany. Additional commentary

E Fee andotherincome Canada United States Europe oa e n te noe$1,254 $ Total feeandotherincome n Canada Total United States Paid orcreditedtopolicyholders Europe g Segregated funds,mutualfundsandother ASO contracts Segregated funds,mutualfundsandother Segregated funds,mutualfundsandother 0 3 _ C G W 8 L _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 8 10  Management's Discussionand Analysis $9,678 $3,301 319 $ March 31 March 31 2016 2016 For thethreemonthsended For thethreemonthsended 4,265 2,112 362 571 321 43 ,3 9,889 $ 5,532 $ ,9 3,765 $ 2,799 $ $328$319 $1,333$1,258 Dec. 31 Dec. 31 2015 2015 ,4 5,003 1,649 ,8 1,121 1,084 6 358 369 3 573 637 2 327 327 139 41 March 31 March 31 2015 2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 9 C Management's Discussion and Analysis and Discussion Management's  11 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 C

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0 g For the three months ended March months ended For the three billion, were $9.7 or credited to policyholders amounts paid 2016, consolidated 31, The decrease liabilities. and a $3.2 billion increase in contract of policyholder benefit payments including $6.5 billion contract liabilities, mostly a $1.2 billion decrease in changes in the same period in 2015 consisted of of $0.2 billion from was primarily in the change in contract liabilities The decrease a $1.0 billion increase in benefit payments. by offset during the first quarter (Equitable Life) annuity business Assurance Society's The Equitable Life of due to the acquisition interest rates in Canada, liabilities as a result of changes in adjustments to insurance contract of 2015 and fair value treaties due to new and restructured reinsurance in benefit payments was primarily The increase the U.S. and Europe. currency movement. and the impact of by $4.1 billion. or credited to policyholders increased consolidated amounts paid quarter, Compared to the previous to fair value adjustments in contract liabilities, primarily due of a $3.4 billion increase in changes The increase consisted The increase and Europe. interest rates in Canada, the U.S. liabilities as a result of changes in to insurance contract treaties. in benefit payments, primarily due to new and restructured reinsurance also consisted of a $0.7 billion increase INCOME TAXES lower than the statutory income tax rate of 26.75% due to benefits income tax rate is generally The Company's effective and lower income tax in foreign jurisdictions. related to non-taxable investment income first quarter income tax rate of 3%, down from 23% in the had an effective In the first quarter of 2016, the Company due to a higher income tax rate for the first quarter of 2016 was primarily The decrease in the effective of 2015. rates consisting of non-taxable investment income and income subject to lower percentage of the Company's income During the first quarter of 2016, one-time items totaling $66 million decreased of income tax in foreign jurisdictions. The first quarter and settlements with tax authorities. income tax rate by 10%, primarily due to elections the effective income tax rate in for uncertain tax positions which increased the effective of 2015 included an increase in reserves that period. than the fourth quarter 2015 rate of 8%. income tax rate of 3% was lower The first quarter 2016 effective The decrease due to the reasons discussed above. Reducing the income tax rate was primarily in the first quarter 2016 effective Asset in the tax rate by 4% was a one-time true-up of a US$27 million tax benefit income fourth quarter 2015 effective segment. Management business unit of the U.S. n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C9 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C10 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 _ remained high,with99%oftheportfolioratedinvestmentgradeand81% A orhigher. assets atMarch 31, 2016and$114.9 billion or71%atDecember 31, 2015. The overallqualityofthebondportfolio investment policies. The totalbondportfolio,includingshort-terminvestments,was$114.1 billionor71%ofinvested Bond portfolio liabilities. and long-termfixed-incomeinvestments,primarilybondsmortgages,reflectingthecharacteristicsofCompany’s liability cashflowsandcapitalmarketconditions. The majority ofinvestmentsthegeneralfundareinmedium-term within theoverallframeworkofCompany’s policies,reviewingandadjustingthemonanongoingbasisinlightof so thatassetsarenotundulyexposedtoconcentration,creditormarketrisks. The Companyimplementsstrategies Company's insuranceandinvestmentproducts. The Companyfollowsprudentandconservative investmentpolicies, The Companymanagesitsgeneralfundassetstosupportthecashflow, liquidityandprofitability requirementsofthe INVESTED ASSETS euro andBritishpound,partiallyoffset bynewbusinessgrowth. 2015, primarilyduetotheimpactofcurrencymovementasCanadiandollarstrengthenedagainstU.S. dollar, 31, 31,2016decreasedby$26.0billionto$1.2trillioncomparedDecember Total assetsunderadministrationatMarch ASSETS CONSOLIDATED FINANCIAL POSITION

E netassets Proprietary mutualfundsandinstitutional netassets Proprietary mutualfundsandinstitutional n te sesudramnsrto 53053154,8 560,102 41,587 503,125 390,245 15,390 159,961 628,229 1,186,519 $ 83,424 Total assetsunderadministration 229,777 189,874 Other assetsunderadministration Total assetsundermanagement $ 789,413 146,860 286,257 Total assets $ 167,329 152,098 $ Assets Total assetsunderadministration Other assetsunderadministration Total assetsundermanagement Total assets Assets underadministration Assets g 0 3 te ses2734552,8 30,211 22,883 198,194 161,581 $ 4,535 50,071 91,959 $ 43,809 2,793 35,966 $ 67,701 70,269 $ Segregated fundsnetassets Other assets Invested assets odiladitnil ses5122452329,949 2,352 2,465 5,132 Goodwill andintangibleassets Segregated fundsnetassets Other assets Goodwill andintangibleassets Invested assets _ C G W 10 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 –ItistheCompany'spolicytoacquireonlyinvestmentgradebondssubjectprudentandwell-defined _ v 1 . i n d d

C 1 0 6,2 0,3 3,6 1,212,517 $ 238,062 $ 808,131 $ 166,324 $ 819$4,7 920$159,663 $ 49,230 $ 42,274 $ 68,159 $ aaaUie ttsErp Total Europe UnitedStates Canada aaaUie ttsErp Total Europe UnitedStates Canada 5,3 0,0 9,7 652,415 399,935 196,475 167,265 305,006 86,775 150,934 145,895 52153163,0 558,290 39,903 503,156 15,231 0403,7 826193,001 88,256 34,275 70,470 ,3 1,3 920252,480 29,210 218,231 5,039 237,984 29,913 202,833 5,238 ,0 ,5 01827,807 9,774 20,148 2,327 4,556 2,319 3,103 5,128 12 December 31,2015 March 31,2016  Management's Discussionand Analysis 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 11 C 4— 84625542 4 3 3 2 405136123105 21 7 6 5 5,821 26 14,238 65 1,538 1 Total December 31, 2015 December 31, 2015 20,984 18 35,623 31 20,364 18 December 31, 2015 December 1929% $1,962 $ 22,021 100% $94649% $ 1,962 100% $ 114,943 100% $ 36,434 32% % % Management's Discussion and Analysis and Discussion Management's  4— 84625543 4 3 3 2 412136122107 21 7 6 5 1,398 1 March 31, 2016 March 31, 20,629 18 34,757 31 21,694 19 $ 960 49% 13 3,6 31 $35,663 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER March 31, 2016 240 13,468 13,708 64 2,918 2,791 5,709 27 Insured Non-insured Total $ 740$ $ 3,898 1,245 $ $ 17,504 $ 1,985 21,402 9% 100% POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 1 – It is the Company’s practice to acquire only high quality commercial mortgages meeting strict only high quality commercial mortgages practice to acquire – It is the Company’s C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2

_ L Ontario Alberta British Columbia Newfoundland Saskatchewan Nova Scotia Manitoba New Brunswick Other Commercial Multi-family residential BB or lower BBB A AA AAA Single family residential W G _ Total $ 114,141 100 Mortgage loans by type Mortgage portfolio Single family residential mortgages Region March 31, 2016 Total $ 1,985 100% Total Bond portfolio quality Bond portfolio 3

The total mortgage portfolio was $21.4 billion or 13% of invested assets at March The total mortgage portfolio was $21.4 31, 2016, compared to $22.0 billion $3.9 billion or 18% of the mortgage portfolio. insured loans were or 14% of invested assets at December Total 31, 2015. Mortgage portfolio has a well-defined risk-rating system, which it uses The Company criteria. underwriting standards and diversification by the processes for commercial loans. Residential loans are originated in its underwriting and credit monitoring underwriting standards and are well diversified mortgage specialists in accordance with well-established Company’s specific diversification requirements for non-insured mortgages. across each geographic region, including 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C11 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C12 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 Energy Sector 2015). 31, 31, 2016(2.4%atDecember 2.4% ofbondandmortgageassets,includingfundsheldbycedinginsurers,atMarch 31, 2015)represents future creditlossesininsurancecontractliabilitiesof$3,462million($3,558atDecember 31, 2015)andactuarialprovisionsfor The aggregateofimpairmentprovisions$27million($24atDecember movement andcreditratingactivity, partiallyoffset bynormalbusinessactivity. compared to$3,558millionatDecember 31, 2015,adecreaseof$96millionprimarilyduetotheimpactcurrency 31, 2016,thetotalactuarialprovisionforfuturecreditlossesininsurancecontractliabilitieswas$3,462million At March consistent withtheCanadianInstituteof Actuaries' StandardsofPracticeandincludesprovisionsforadversedeviation. As acomponentofinsurancecontractliabilities,thetotalactuarialprovisionforfuturecreditlossesisdetermined Provision forfuturecreditlosses 2016. 31, average remainingamortizationperiodforthesinglefamilyresidentialmortgageportfoliois22yearsasatMarch the loan-to-valuetoamaximumof80%purchasepriceorcurrentappraisedvalueproperty. The weighted residential mortgages,theCompany’s investmentpolicieslimit theamortizationperiodtoamaximumof25yearsand insured aresubjecttotherequirementsofmortgagedefaultinsuranceprovider. Forneworiginationsofnon-insured and protectstheCompanyineventthatborrowerisunabletofulfiltheirmortgageobligations.Loansare million, ofwhich29%wereinsured.Insuredmortgagesincludewhereinsuranceisprovidedbyathirdparty During thethreemonthsendedMarch 31, 2016,singlefamilymortgageoriginations,including renewals,were$187 oa ,1 ,8 ,6 7,962 $ 1,561 $ 2,383 $ 4,018 $ Total Investment properties _ Mortgages Bonds 2016. state of Texas.31, The weightedaverageloan-to-valueratioofthecommercialmortgageswaslessthan55%atMarch Approximately 82%oftheportfoliowasconcentratedinprovince Alberta, withtheremainderprimarilyin well diversifiedacrosspropertytype-Industrial/Other(30%),Multi-family(27%),Office (23%) andRetail(20%). concentrated incertaingeographicregionswheretheeconomyismoredependentuponenergysectorand were energy sectorof$2.9billion,or1.7%investedassets,includingfundsheldbycedinginsurers. These holdingswere In addition,theCompanyalsoholdsindirectexposuretocommercialmortgagesandinvestmentproperties inthe half inIntegrated,IndependentandOilFieldServicesentities. 97% ratedinvestmentgrade. Approximately halfoftheportfoliowasinvestedinMidstreamand Refiningentitiesand sector relatedbondholdingswerewelldiversifiedacrossmultiplesub-sectorsandhighqualitywithapproximately holdings of$5.1billion,or3.0%investedassets,includingfundsheldbycedinginsurers. The Company'senergy At March 31, 2016,the Company's holdingsofenergysectorrelatedinvestmentsincludeddirectexposurebond (4) (3) (2) (1)

E Holdings ofEnergySector n g 0 3 Includes$611 millionofinsuredmortgagesatMarch31,2016and$613December2015. Includes certainfundsheldbycedinginsurerswithacarryingvalueof$524millionandanamortizedcost$493million. Amortized costofthesebondsis$5,013millionatMarch31,2016and$5,177December2015. annual consolidatedfinancialstatements. Energy sectorbondholdingsareasub-categoryofcertainindustrysectorspresentedinnote7(a)(ii)theCompany'sDecember _ C G W (2)(3) 12 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 (4) 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 1 2 (1) relatedBonds,MortgagesandInvestmentProperties ,2 ,7 ,1 5,106 $ 1,510 $ 2,070 $ 1,526 $ aaaUS uoeTotal Europe U.S. Canada ,0 1 12,564 51 313 2,200 9 292 — — 292 14 March 31,2016  Management's Discussionand Analysis $8,076 $5,216 Dec. 31,2015 Total 2,560 31, 2015 31, 300 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM ancial 13 15,736 (1) 198,194 C 2015 December 31 $ 374,675 $ 160,745 15,245 193,001 2016 March 31 $365,714 $157,468 Management's Discussion and Analysis and Discussion Management's  15 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER to the strengthening of the Canadian dollar against the U.S. dollar, to the strengthening of the Canadian dollar against the U.S. dollar,

POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 1 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L statements. W G Comparative figures have been reclassified as described in note 16 to the Company's March 31, 2016 condensed consolidated fin _ Total Other general fund liabilities Investment and insurance contracts on account of segregated fund policyholders Investment and insurance contracts on account Insurance and investment contract liabilities Total liabilities 3

(1) to $365.7 billion at March liabilities decreased by $9.0 billion 31, 2016 from December 31, 2015. Investment and Total by $5.2 billion, primarily due to the impact insurance contracts on account of segregated fund policyholders decreased $0.5 billion. Insurance and investment contract by net deposits of of currency movement of $5.7 billion, partially offset liabilities decreased by $3.3 billion, primarily due by the impact of fair value adjustments. euro and British pound, partially offset Annuity Guarantees Segregated Fund and Variable annuity products retail segregated fund products, unitized with profits (UWP) products and variable The Company offers investment funds. that provide for certain guarantees that are tied to the market values of the levels of death and by the Company offer The guaranteed minimum withdrawal benefit (GMWB) products offered U.S., Ireland and 31, 2016, the amount of GMWB products in-force in Canada, the At March maturity guarantees. Germany were $3,499 million ($3,488 million at December The Company has a hedging program in place 31, 2015). products. to manage certain risks associated with options embedded in its GMWB 0 g DERIVATIVE FINANCIAL INSTRUMENTS INSTRUMENTS FINANCIAL DERIVATIVE procedures with respect to the Company's policies and of 2016, there were no major changes During the first quarter governed by derivative transactions are generally The Company’s financial instruments. to the use of derivative which provide for legally enforceable Agreements, Master Association, Inc. (ISDA) and Derivatives International Swaps early termination of a transaction, counterparties in the event of close-out netting of exposure to specific and set-off the Company In the event of an early termination, bankruptcy. is not limited to, events of default and which includes, but same legal in the counterparty, against payables to the same receivables from a counterparty off is permitted to set Agreements may include Credit Support Master ISDA The Company’s arising out of all included transactions. entity, with its derivative and accepting of collateral in connection which require both the pledging Annex provisions, transactions. on derivative and overcollateralization, received collateral, including initial margin 31, 2016, total financial At March ($671 December 31, 2015) and pledged on derivative liabilities was $433 million assets was $73 million ($107 million at as a pledged on derivative liabilities decreased in the first quarter of 2016 million at December 31, 2015). Collateral against primarily driven by the impact of the strengthening Canadian dollar result of a decrease in derivative liabilities, fair values. the U.S. dollar on cross-currency swap March During the three month period ended contracts increased 31, 2016, the outstanding notional amount of derivative security due to an increase of $2.2 billion in forward settling to-be-announced by $2.5 billion to $19.2 billion, primarily transactions and regular hedging activities. fair value of those instruments exposure to derivative counterparty credit risk, which reflects the current The Company’s million at March in a gain position, increased to $602 2015. Market values 31, 2016 from $461 million at December 31, the U.S. as the end of period rates for the Canadian dollar strengthened against increased on cross-currency swaps pound. euro and British dollar, LIABILITIES n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C13 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C14 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 _ oa 050$59$3 0 1,247 991 $ 709 471 $ 36 — $ 559 541 $ 50,530 $ 9,828 Total Total Europe of earnings,adequacycapitalandavailabilitycashresources. to declareadividendonthecommonsharesofCompanytakesintoaccountvarietyfactorsincluding the level of theCompanyaredeclaredandpaidatsolediscretionBoardDirectorsCompany. The decision The Companydoesnothaveaformalcommonshareholderdividendpolicy. Dividendsonoutstandingcommonshares committed linesofcreditwithCanadiancharteredbanksforunanticipatedliquidityneeds,ifrequired ($0.9 billionatDecember31,2015)theLifecoholdingcompanylevel.Inaddition,Companymaintains sufficient 31, 2016wasapproximately$0.8billion 2015). Includedinthecash,cashequivalentsandshort-termbondsatMarch billion atDecember31,2015)andotheravailablegovernmentbondsof$35.1($35.6 31, the Companyanditsoperatingsubsidiariesheldcash,cashequivalentsshort-termbondsof$7.4billion ($7.1 31, 2016, bonds attheLifecoholdingcompanylevelandwithconsolidatedsubsidiarycompanies. At March and maintainingadequatelevelsofliquidinvestments. The Companyholdscash,cash equivalentsandshort-term The Company’s liquidityrequirementsarelargelyself-funded,withshort-termobligationsbeingmetbyinternalfunds LIQUIDITY LIQUIDITY AND CAPITAL MANAGEMENT AND ADEQUACY at anaveragecostpershareof$34.32(2015-$34.23)underitsNCIB. March 31, 2016,theCompanyrepurchasedandsubsequentlycancelled624,181commonshares(2015-765,450) 20,000,000 commonshares. The amendedNCIBwillcontinuetoJanuary7,2017.Duringthethreemonthsended under theCompany'sStockOptionPlan. The NCIBwasamendedeffective February23,2016topurchaseup up to8,000,000ofitscommonsharesatmarketpricesinordermitigatethedilutiveeffect ofstockoptionsgranted The Companycommencedanormalcourseissuerbid(NCIB)onJanuary8,2016foroneyeartopurchaseandcancel $37 millionoffloatingrateFirstPreferredShares. $2,264 millionofnon-cumulativeFirstPreferredShares,$2135-yearrateresetSharesand Share capitaloutstandingatMarch31,2016was$9,681million,whichcomprises$7,167millionofcommonshares, SHARE CAPITAL AND SURPLUS unit intheEuropesegment. were $8millionin-quarter($3forthefirstquarterof2015)withmajorityarisinginReinsurancebusiness having occurredandthemarketvaluesatthattime. The actual claimsbeforetaxassociatedwiththeseguarantees death) assumingitoccurredonMarch 31, 2016. The actualcosttotheCompanywilldependontriggerevent The investmentdeficiencymeasuresthepoint-in-timeexposuretoatriggerevent(i.e.,incomeelection,maturityor (2) (1)

E Europe United States Canada Segregated fundandvariableannuityguaranteeexposure n ReinsuranceexposureistomarketsinCanadaandtheUnitedStates. A policycanonlyreceiveapayoutfromoneofthethreetriggerevents(incomeelection,maturityordeath). Total deficienc g nuac nute ,0 1—43443 443 — 21 8,709 Reinsurance Insurance &Annuities 0 3 point-in-time exposureassumingthemostcostlytriggereventforeachpolicyoccurredonMarch31,2016. _ C G W 14 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 (2) - 0 5 _ v 1 . i n d d

C 1 4 953$—$3 8 189 $ 189 $ 36 $ — $ 29,503 $ aktVleIcm auiyDahTotal Death Maturity Income Market Value 1191 967 49 — 18 11,199 ,1 2 8548 28 — 520 1,119 16 Investment deficiencybybenefittype  Management's Discussionand Analysis March 31,2016 .

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 91 608 699 (380) (104) 2,498 15 C 2015 $1,092 $3,197 March 31 245 110 (135) (413) (708) 2,813 2016 For the three months ended $ 1,366 Management's Discussion and Analysis and Discussion Management's 

17 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 1 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G _ Cash flows relating to the following activities: Operations Financing Investment Cash flows Effects of changes in exchange rates on cash and cash equivalents Effects of changes in exchange rates on Cash and cash equivalents, beginning of period Cash and cash equivalents, beginning of Increase (decrease) in cash and cash equivalents in the period Increase (decrease) in cash and cash equivalents Cash and cash equivalents, end of period $ 2,923 3

The principal source of funds for the Company on a consolidated basis is cash provided by operating activities, including on a consolidated basis is cash provided by operating activities, including The principal source of funds for the Company These funds are used primarily to pay policy benefits, and fee income. premium income, net investment income well as operating expenses and commissions. Cash flows generated by operations policyholder dividends and claims as the liability cash requirements. Cash flows related to financing activities include are mainly invested to support future and associated dividends and interest payments. issuance and repayment of capital instruments, million from December 31, 2015. Cash flows cash equivalents increased by $110 In the first quarter of 2016, cash and to quarter of 2016 were $1,366 million, an increase of $274 million compared provided by operations during the first primarily used for payments of dividends to the first quarter of 2015. Cash flows used in financing were $413 million, a line of credit of a subsidiary of $41 million. the preferred and common shareholders of $374 million and a decrease to the Company increased the dividend to common shareholders from $0.326 per common share to During the quarter, 2016, cash flows were used by the Company to 31, $0.346 per common share. For the three months ended March acquire an additional $708 million of investment assets. OBLIGATIONS COMMITMENTS/CONTRACTUAL the first quarter of 2016, one of the Company's subsidiaries entered into Annual MD&A, during As reported in the 2015 The incremental annual lease agreement for 15 years commencing in 2018, which replaces an existing lease. an office lease payments relating to this agreement are not material. not changed materially from December Other than the item noted above, commitments/contractual obligations have 31, 2015. 0 g As a holding company, the Company’s ability to pay dividends is dependent upon the Company receiving dividends receiving upon the Company dividends is dependent ability to pay the Company’s company, As a holding regulation in a number of subsidiaries are subject to operating The Company’s subsidiaries. from its operating must be held in connection determining the amount of capital that of which maintains its own regime for jurisdictions, each the regulators in The requirements imposed by operating subsidiaries. businesses carried on by the with the different subsidiaries to pay impact the ability of the operating change from time to time, and thereby any jurisdiction may has changed to the Solvency the local solvency capital regime For entities based in Europe, dividends to the Company. European insurance and reinsurance During 2016, the Company's regulated January 1, 2016. II basis, effective potential capital volatility and undertake steps to manage the to develop internal risk models businesses will continue regulators. in cooperation with the European under the new regulations CASH FLOWS n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C15 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C16 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 and otherindustryparticipantsduringtheconsultationperiodsubsequentimplementationplanning. ongoing dialoguewithOSFI,theCanadianInstituteof Actuaries, theCanadianLifeandHealthInsurance Association completion andtheCompanycontinuestoactivelyengageindevelopmentconsultations. The Companywillcontinue draft guideline. The guidelinehascontinued toevolvesubsequentthemostrecentQuantitativeImpactStudy The CompanyhasactivelyparticipatedintheOSFIQuantitativeImpactStudiesoverrecentyearsrelatingto LICAT business, capitaldistributionandimpactbyriskcompanymaychange. Since OSFIdevelopedtheLICAT guidelinetobetteralignriskmeasureswiththeeconomicrealities ofthelifeinsurance guideline isnotexpectedtoincreasetheamountofcapitalinindustrycomparedcurrentMCCSRguideline. (LICAT). OSFIplansfortheLICAT guidelinetoreplacethe MCCSRguidelinein2018.OSFIhasstatedthattheLICAT On March31,2016,OSFIissuedforpublicconsultationthedraftguideline:LifeInsuranceCapital Adequacy Test OSFI RegulatoryCapitalInitiatives management. capital transactions,theCompanyusesandprovidestraditionalstructuredreinsurancetosupport andrisk capital planaswelltransactionsundertakenbymanagementpursuanttotheplan.Inadditionundertaking the Company'sstrategy, riskprofileandbusinessplans. The BoardofDirectorsreviewsandapprovestheannual capital plan. The capitalplanisdesignedtoensurethattheCompanymaintainsadequatecapital,takingintoaccount Management isresponsibleforestablishingcapitalmanagementproceduresimplementingandmonitoringthe The Companyhasestablishedpoliciesandproceduresdesignedtoidentify, measureandreportallmaterialrisks. liabilities, therewilllikelybefurtherregulatorycapitalandaccountingchanges,someofwhichmaysignificant. Due totheevolvingnatureofIFRSandproposedfuturechangesformeasurementinsurancecontract subsidiaries, areamortizedovertwelvequarters. re-measurements todefinedbenefitplans,impactingavailablecapitalfortheCompany’s federallyregulated to aprescribedinclusionforportionofintangibleassets. The OSFIMCCSRguidelinealsoprescribesthatquarterly In calculatingtheMCCSRposition,availableregulatorycapitalisreducedbygoodwillandintangibleassets,subject liquidity attheLifecoholdingcompanylevelMarch31,2016($0.9billionDecember2015). 263% (260%atDecember31,2015). The MCCSRratiodoesnottakeintoaccountanyimpactfrom$0.8billionof 31, 2016was 31, 2016was218%(226%atDecember2015).CanadaLife'sMCCSRratioMarch ratio atMarch Great-West Life’s31, 2016was236%(238%atDecember2015). LondonLife’s MCCSRratioatMarch MCCSR operating subsidiariesis175%to215%(onaconsolidatedbasis). subsidiaries, knownastheMCCSRratio. The internaltargetrangeoftheMCCSRratioforLifeco'smajorCanadian measurement forlifeinsurancecompaniesincorporatedundertheInsuranceCompanies Act (Canada)andtheir In Canada,theOffice oftheSuperintendentFinancialInstitutions(OSFI)hasestablishedacapitaladequacy Company. on theopinionsexpressedbyvariouscreditratingagenciesthatprovidefinancialstrengthandotherratingsto decisions oftheCompanyanditsoperatingsubsidiariesalsogiveconsiderationtoimpactsuchactionsmayhave the relevantminimumregulatorycapitalrequirementsinjurisdictionswhichtheyoperate. The capitalization The Company’s practiceistomaintainthecapitalizationofitsregulatedoperatingsubsidiariesatalevelthatwillexceed in thecontextofitsoperationalrisksandrequirementsstrategicplans. is dependentuponlocalregulatoryrequirements,aswelltheCompany’s internalassessmentofcapitalrequirements deployed initsvariousoperatingsubsidiaries. The amountofcapitaldeployedinanyparticularcompanyorcountry At theholdingcompanylevel,Companymonitorsamountofconsolidatedcapitalavailableandamounts CAPITAL MANAGEMENT AND ADEQUACY _

E n g 0 3 _ C G W 16 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 17 C uarters. 2015 2015 1.4 % (0.7)% (2.7)% (5.1)% 20.2 % 22.2 % 13.0 %16.8 % 16.014.7 % % 18.0 % 16.0 % Dec. 31 31 Mar. Management's Discussion and Analysis and Discussion Management's  2016 11.6 % Mar. 31 19 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER (2) 7 1 C

d (1) d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L Return on Equity is the calculation of net earnings divided by the average common shareholders' equity over the trailing four q Return on Equity is the calculation of net earnings Includes U.S. Corporate. W G _ Return on Equity

3

(1) (2) on net earnings of 14.0% at March 31, 2016, compared to 14.7% at December The Company reported ROE based along with the increased average The decline was caused by lower year-over-year in-quarter net earnings 31, 2015. of the Canadian dollar over the trailing four quarters. equity position caused by the weakening 0 Canada 20.0 % U.S. Financial Services Total Lifeco Net Earnings Basis 14.0 % U.S. Asset Management (Putnam)EuropeLifeco Corporate 0.2 % (2.7)% 16.4 % g OSFI will consider the comments received during the public consultation period in developing the final version of the developing the final period in the public consultation received during consider the comments OSFI will The guideline. of the LICAT runs to help inform the final calibration OSFI also plans to conduct test guideline. LICAT implementation planning and will continue to advance its contribute to the OSFI test run process Company will actively of the LICAT. for the future adoption METHODOLOGY ALLOCATION CAPITAL capital. costs in proportion to allocated which allocates financing a capital allocation methodology, The Company has method tracks the regulatory Life), this allocation Great-West and European segments (essentially For the Canadian financial Management (Putnam), it tracks the Asset and U.S. while for U.S. Financial Services capital requirements, units is consistently allocated across all business leverage capital Total value of the business units. statement carrying consolidated Company. ratio in each business unit mirroring the capital resulting in a debt-to-equity in proportion to total for each allows the Company to calculate comparable Return on Equity (ROE) The capital allocation methodology and the financing ROEs are therefore based on the capital the business unit has been allocated These business unit. charges associated with that capital. n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C17 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C18 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 of 2016. and collectiveownershipbyLifeco. There werenochangestotheCompany'sgroupcreditratingsinfirstquarter as wellanintegratedbusinessplatform.Eachoperatingcompanybenefitsfromthestrongimplicitfinancialsupport and Europe.Great-West Life,LondonLifeandCanadahavecommonmanagement,governancestrategy, supported bytheCompany’s leadingpositionintheCanadian insurancemarketandcompetitivepositionsintheU.S. Lifeco's operatingcompaniesareassignedagroupratingfromeachagency. This groupratingispredominantly and consistentdividendtrackrecord. strong ratingsrelativetoitsNorth American peergroupresultingfromitsconservativeriskprofile,stablenetearnings Lifeco anditsmajoroperatingsubsidiarieswereunchanged(setoutintablebelow). The Companycontinuedtoreceive Lifeco maintainsratingsfromfiveindependentcompanies.Inthefirstquarterof2016,creditfor RATINGS _ products togroupclientsinCanada. dismemberment, criticalillness,healthanddentalprotection,creditordirectmarketinginsuranceaswell specialty in Canada. Through theGroupInsurancebusinessunit,Companyprovideslife,accidentaldeathand business unit,theCompanyprovidesaccumulationproductsandannuityforbothgroupindividual clients provides life,disabilityandcriticalillnessinsuranceproductstoindividualclients. Through theWealth Management three primarybusinessunitsincludedinthissegment. Through theIndividualInsurancebusinessunit,Company Life, LondonLifeandCanadatogetherwithanallocationofaportionLifeco'scorporateresults. There are The CanadasegmentofLifecoincludestheoperatingresultsCanadianbusinessesoperatedbyGreat-West CANADA of thecompanies. States, EuropeandLifecoCorporate–reflectinggeographiclinesaswellthemanagementcorporate structure For reportingpurposes,theconsolidatedoperatingresultsaregroupedintofourreportablesegments–Canada, United results. operating subsidiaries,LondonLifeandCanadaLife;Great-West FinancialandPutnam;togetherwithLifeco'scorporate capital allocation.ConsolidatedoperatingresultsforLifecocomprisethenetearningsofGreat-West Lifeandits The consolidatedoperatingresultsofLifeco,includingthecomparativefigures,arepresentedonanIFRSbasis after SEGMENTED OPERATING RESULTS Poor's RatingsServices. perpetual capitalnotesassumedontheacquisitionofIrishLifearerated A byFitchRatingsand A- byStandard& Fitch Ratingsandalong-termcreditratingof A+ fromStandard&Poor'sRatingsServices. The ILA €200million Assurance Plc(ILA)isnotpartofthegroupratings.ILA hasaninsurerfinancialstrengthratingof AA from

E ic aig nue iaca teghA AA AA AA A+ Aa3 AA Aa3 A+ AA Aa3 A+ AA Aa3 A+ A(high) InsurerFinancialStrength Services InsuranceFinancialStrength Standard &Poor'sRatings Moody's InvestorsService IssuerRating Fitch Ratings FinancialStrength DBRS Limited A.M. BestCompany n g 0 3 _ C G W aigaec esrmn Lifeco Measurement Rating agency 18 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 1 8 uodntdDb AA- AA NR AA AA(low) AA AA A+ AA AA A AA Subordinated Debt A(high) Senior Debt Insurer FinancialStrength Senior Debt Subordinated Debt Senior Debt Financial Strength 20 Great-West Life  Management's Discussionand Analysis London Life Canada Life Great-West Financial 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 19 2015 C 2015 March 31 March 31 369 358 262 299 51 77 137 113 3,492 3,183 5,039 5,019 15,390 15,164 150,934 152,391 2015 Dec. 31 2015 Dec. 31 $ 166,324 $ 167,555 $6,110$5,913 $ 145,895 $ 147,372 $1,304$1,154 362 276 92 125 3,268 5,238 For the three months ended For the three months 15,231 152,098 For the three months ended 2016 2016 March 31 March 31 $6,036 $ 146,860 March 31 Management's Discussion and Analysis and Discussion Management's $1,236  retirement program. The Company claimed two retirement program. TM 21 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 1 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W compared to the same quarter last year. respectively. and Individual Insurance, which increased 125% and 11%, primarily due to strong sales in both Group of lower equity was primarily due to less favourable morbidity experience, the impact The decrease period last year. by lower income taxes. from investment experience, partially offset market levels and lower contributions lead its data and analytics capabilities with the view to generate insights that The Company continues to invest in been hired to has recently Officer Analytics Chief Data and A and better customer outcomes. to greater efficiency of excellence in this field and is The Company also plans to build its relationships with centres lead this effort. centre at the University of to collaborate on data projects. the IVADO currently concluding a partnership with the launch of the HelloLife team with three of its top awards for G Merit prizes for Internal Communication and Writing and won the Award of Excellence for Marketing, Advertising of Excellence for Marketing, Award and won the and Writing Merit prizes for Internal Communication and Brand Communication. _ Fee and other income administration Other assets under Total assets under administration $ 167,329 Premiums and deposits Sales Total assets under management Net earnings - common shareholders Net earnings - common Selected consolidated financial information - Canada consolidated financial Selected Proprietary mutual funds and institutional net assets Proprietary mutual funds Total assets 3

BUSINESS UNITS - CANADA INSURANCE INDIVIDUAL RESULTS OPERATING 2016 DEVELOPMENTS • $6.0 billion, an increase of $123 million Premiums and deposits for the three months ended March 31, 2016 were • Sales for the three months ended March $3.3 billion, a 3% increase from the same quarter in 2015, 31, 2016 were • for the three months ended March Net earnings to $299 million for the same 31, 2016 were $276 million, compared • • Management marketing of Business Communicators awarded the Wealth Association April 2016, the International In 0 g Premiums and deposits Sales Net earnings n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C19 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C20 C C

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U GREAT-WEST LIFECO INC. A T 1 new businessstrain. to thepreviousquarter, primarilyduetolowercontributionsfrominsurancecontractliabilitybasischangesandhigher The netearningsattributabletotheparticipatingaccountforfirstquarterof2016decreasedby$35millioncompared participating surplusassetsandhighernewbusinessstrain. million comparedtothesamequarterlastyear, primarilyduetolowercontributionsfrominvestmentexperienceon For thefirstquarterof2016,netearningsattributabletoparticipatingaccountdecreasedby$28million$5 to certainincometaxestimates. offset bylessfavourablemorbidityexperience.Inaddition,netearningsin2016werepositivelyimpactedchanges primarily duetohighercontributionsfrominvestmentexperienceandinsurancecontractliabilitybasischanges,partially Net earningsforthefirstquarterof2016increasedby$41millioncomparedtopreviousquarter. The increasewas earnings in2016werepositivelyimpactedbychangestocertainincometaxestimates. offset bylessfavourablemorbidityexperienceandlowercontributionsfrominvestmentexperience.Inaddition,net year. The increasewasprimarilyduetohighercontributionsfrominsurancecontractliabilitybasischanges,partially Net earningsforthefirstquarterof2016increasedby$15millionto$92comparedsamelast Net earnings primarily duetoa10%decreaseinparticipatinglifesales. Individual Insurancesalesforthefirstquarterof2016decreasedby$12millioncomparedtopreviousquarter, sales werecomparabletothesamequarterlastyear. increased by$3millionor27%andLivingBenefitssales$1million,whileUniversalLifeinsuranceproduct quarter lastyear. Participatinglifesalesremainedstrong,up$9millionor11%. Term Lifeinsuranceproductsales Individual Insurancesalesforthefirstquarterof2016increasedby$12millionto$125comparedsame Sales primarily duetolowerparticipatinglifepremiums. Individual Insurancepremiumsforthefirstquarterof2016decreasedby$68millioncomparedtopreviousquarter, of $83millionwerecomparabletosamequarterlastyear. to thesamequarterlastyear, primarilyduetoa10%increaseinparticipatinglifepremiums.LivingBenefitspremiums same quarterlastyear. IndividualLifepremiumsforthequarterincreasedby$81millionto$1,153compared Individual Insurancepremiumsforthefirstquarterof2016increasedby$82millionto$1,236compared Premiums anddeposits _

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 21 C 2015 March 31 316 308 119 122 3,220 2,944 2015 Dec. 31 $2,804$2,811 307 101 2,860 For the three months ended For the three months 2016 March 31 March 31 Management's Discussion and Analysis and Discussion Management's $2,726  23 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 2 C

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Premiums and deposits same of 2016 decreased by $85 million to $2,726 million compared to the Premiums and deposits for the first quarter due to lower premiums and deposits related to individual investment The decrease was primarily quarter last year. offset asset flows pertaining to segregated funds and mutual funds, partially funds, reflective of a decline in industry related to group capital accumulation plan (GCAP) products. by an increase in premiums and deposits The of 2016 decreased by $78 million compared to the previous quarter. Premiums and deposits for the first quarter offset premiums related to single premium group annuities (SPGAs), partially decrease was primarily driven by lower products. segregated fund products and GCAP by higher premiums related to individual Sales year. by $84 million to $2,860 million compared to the same quarter last Sales for the first quarter of 2016 decreased by higher sales of GCAP sales of individual investment funds, partially offset The decrease was primarily due to lower (IO) products. products and group investment only The decrease was by $360 million compared to the previous quarter. Sales for the first quarter of 2016 decreased by higher and SPGAs, partially offset products investment funds, GCAP primarily driven by lower sales of individual sales of group IO products. inflows for the first quarter of 2016 were and proprietary individual investment fund business, net cash For the GCAP in the same quarter last year and $358 million in the previous quarter. $341 million compared to $250 million Fee and other income Growth to the same quarter last year. Fee and other income of $307 million for the first quarter of 2016 was comparable assets under by lower fee income due to lower average in other income related to distribution arrangements was offset administration driven by lower average equity market levels. primarily compared to the previous quarter, Fee and other income for the first quarter of 2016 decreased by $9 million equity market levels. due to lower average assets under administration driven by lower average Net earnings million compared to the same quarter last Net earnings for the first quarter of 2016 decreased by $21 million to $101 experience, lower net fee income and The decrease was primarily due to lower contributions from investment year. less favourable longevity experience. primarily due to to the previous quarter, Net earnings for the first quarter of 2016 decreased by $18 million compared longevity by more favourable offset lower contributions from insurance contract liability basis changes, partially experience. WEALTH MANAGEMENT WEALTH RESULTS OPERATING 0 g Fee and other income Premiums and deposits Sales Net earnings n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C21 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C22 C C

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U GREAT-WEST LIFECO INC. A T 1 Premiums anddeposits Fee andotherincome Sales Net earnings _ For thefirstquarterof2016,CanadaCorporatenetearnings$16millionwerecomparabletoprevious quarter. Corporate. and highernetinvestmentincome,drivenbyfairvalueadjustmentsonpropertiesheldin Canada for thesamequarterlastyear. The changeinnetearningswasprimarilyduetochangescertainincometaxestimates For thefirstquarterof2016,CanadaCorporatehadnetearnings$16millioncomparedtoaloss$9 million Canada CorporateconsistsofitemsnotassociateddirectlywithorallocatedtotheCanadianbusinessunits. CANADA CORPORATE morbidity experience,drivenbybothimprovedlong-termdisabilityexperienceandhealthcareexperience. lower contributionsfrominsurancecontractliabilitybasischanges. The decreasewaspartiallyoffset bymorefavourable Net earningsforthefirstquarterof2016decreasedby$7millioncomparedtopreviousquarter, primarilydueto that resultedinone-timeadditionalclaimterminations,whichdidnotrecur2016. renewed. In addition,netearningsforthefirstquarterof2015werepositivelyimpactedbyaclaimsprocesschange implementing rateincreaseswithrespecttolong-termdisabilitycontractswhereappropriate,as are related tolargenon-refundcases,aswelllowercontributionsfrominvestmentexperience. The Companyis year. The decreasewasprimarily duetolessfavourablelong-termdisabilitymorbidityexperienceof$28million,mostly Net earningsforthefirstquarterof2016decreasedby$42millionto$67comparedsamelast Net earnings was comparabletothepreviousquarter. Fee andotherincomeof$43millionforthefirstquarter2016increased10%oversamelastyear Fee andotherincome sales inthelarge-casemarket,partiallyoffset bylowersalesinthemid-sizecasemarket. Sales forthefirstquarterof2016increasedby$148millioncomparedtopreviousquarter, primarilyduetohigher small-case marketsales. last year. The increasewasprimarilyduetohighersalesinthelarge-casemarket,alongwithincreasedcreditorand Sales forthefirstquarterof2016increasedby$157million,or125%,to$283millioncomparedsame Sales due toanincreaseinlarge-casemarketpremiumsanddeposits. Premiums anddepositsforthefirstquarterof2016increasedby$72millioncomparedtopreviousquarter, primarily quarter lastyear, primarilyduetoanincreaseinmid-sizeandlarge-casemarketpremiumsdeposits. Premiums anddepositsforthefirstquarterof2016increasedby$126millionto$2,074comparedsame Premiums anddeposits OPERATING RESULTS GROUP INSURANCE

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C 2 2 24  $2,074 Management's Discussionand Analysis March 31 2016 For thethreemonthsended 283 43 67 ,0 1,948 $ 2,002 $ Dec. 31 2015 3 126 135 139 41 4109 74 March 31 2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM usiness 23 (1) C 2015 March 31 92 98 637125 573 121 31,630 20,123 2015 503,125 494,200 305,006 292,510 218,231 211,294 Dec. 31 $ 15,956 $ 12,962 $ 808,131 $ 786,710 $ 86,775 $ 81,216 63 47 571 For the three months ended 40,158 2016 503,156 286,257 202,833 March 31 $ 16,117 Management's Discussion and Analysis and Discussion Management's $ 83,424  25 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 2 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 (1) _ L units. W to the same quarter last year, primarily due to lower contributions from investment experience, lower net fee income primarily due to to the same quarter last year, by lower income taxes. and higher operating expenses, partially offset G the Company's b Comparative figures for sales (a non-IFRS financial measure) have been restated to improve consistency across _ Selected consolidated financial information - United States Selected consolidated financial information 3 Sales Premiums and deposits

(1) 2016 DEVELOPMENTS • Net earnings for the three months ended March a decrease of US$51 million compared 31, 2016 were US$47 million, UNITED STATES UNITED the results of Putnam and Financial, of Great-West include the results results for Lifeco States operating The United together with an allocation Life and Canada Life, of Great-West in the United States branches the insurance businesses corporate results. of a portion of Lifeco's the Company provides the Empower Retirement brand, Services business unit, and specifically Through its Financial plans, administrative and defined contribution security products, including employer-sponsored an array of financial and advisory services. fund management as well as investment individual retirement accounts, recordkeeping services, its Individual Markets executive benefits products through provides life insurance, annuity and The Company also operations. management, certain administrative unit, the Company provides investment Asset Management business Through its range of investment products. and related services, through a broad functions, distribution OF FOREIGN CURRENCY TRANSLATION financial are translated into Canadian dollars at the market rate at the end of the Foreign currency assets and liabilities rate for the period. All income and expense items are translated at an average period. financial measure that highlights the impact of changes in currency translation Currency translation impact is a non-IFRS results between measure provides useful information as it facilitates the comparability of This rates on IFRS results. regarding non-IFRS Financial Measures at the beginning of this document. periods. Refer to the Cautionary Note 0 g Total assets under administration $ 789,413 Other assets under administration Total assets under management Proprietary mutual funds and institutional net assets Proprietary mutual funds and institutional Total assets Net earnings - common shareholders Net earnings - common shareholders (US$) Fee and other income n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C23 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C24 C C

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U GREAT-WEST LIFECO INC. A T 1 • Great-West Life& Annuity InsuranceCapital,LP IIhasUS$300millionof7.153%subordinateddebentures • _ • At the 23 The Companyhassetanannualcost-savingstargetofUS$40milliontoUS$50pre-tax.Integrationactivities • EmpowerRetirementcontinuestoincurstrategicandbusinessdevelopmentexpensesasitfocuseson • NetearningsforthethreemonthsendedMarch 31, 2016wereUS$67million,adecreaseofUS$30millionover • PremiumsanddepositsforthethreemonthsendedMarch 31, 2016wereUS$2.7billion,anincreaseofUS$0.5 • 31, 2016wereUS$20.3billion,anincreaseofUS$12.3billioncompared SalesforthethreemonthsendedMarch • 2016 DEVELOPMENTS FINANCIAL SERVICES BUSINESS UNITS–UNITEDSTATES

E n g business strategyandgrowthobjectives. Management doesnotexpectthatitwillpreventGreat-West FinancialorPutnamfromexecutingontheiroverall Markets businesses. The rulemayrequirechangestocertainaspectsofproductandservicedeliverybut is intheprocessofanalyzingruleagainstcurrentbusinesspracticesitsEmpowerRetirementandIndividual with therulewillgenerallyberequiredby April 10,2017(certainpartsbyJanuary1,2018).Great-West Financial reason ofprovidinginvestmentadvicetoaretirementplanorholderanindividualaccount.Compliance On April 6,2016,theU.S.DepartmentofLaborissuedanewruleredefiningandexpandingwhoisfiduciary by further discussion. Note 9totheCompany'scondensedconsolidatedfinancialstatementsforperiodendedMarch31,2016 agency considerationsandthecustompracticeinmarketwhichsecuritieswereissued. the marketconditions,legalstructureandobligations,usetobemadeofproceeds,regulatoryrating All relevantvariablesareidentifiedandevaluatedincludingbutnotlimitedtotheeconomicimpactCompany, and capitalinstruments,theydosoonacase-by-casebasisforeachspecificinstrumentunderconsideration. notification periodconcluded April 16,2016. When companieswithintheLifecogroupmakedecisionsoncapital outstanding maturingin2046,thathaveafirstcalldateofMay16,2016. The calloptionwasnotexercised,asthe 0 provider intheU.S.,wasnamed"RetirementLeaderof Year" foritscontributionstotheretirementindustry. market sharebydrivingfuturesalesandimprovingtheretentionofparticipantsassets. from systemandinfrastructureenhancements. The Companyexpectsthattheseenhancementswillincrease based inIndia,aswellscale-drivencostimprovements.Ongoingoperationswillincludeamortizationexpense increased utilizationofGreat-West Global,whichlaunchedinthethirdquarterof2015,withover350professionals expected tobeachievedthroughefficiencies fromtheconversionofbusinessontoasingleback-office platform, reflected uponthecompletionofbusinesstransformationinnextthreetofouryears. These synergiesare are expectedtobecompletedbythesecondquarterof2017withannualreductionoperatingcosts fully For thethreemonthsendedMarch31,2016,thesecostshavedecreasednetearningsbyUS$6million. earnings byUS$34millionandareexpectedtodecreasenetapproximatelyUS$20in 2016. year initiative,withoverUS$126millionalreadyinvestedbyMarch31,2016. over thenextseveralyears. The CompanyanticipatesinvestingapproximatelyUS$150millionintotalonthismulti- enhancements, whichwillimprovetheclient-facingexperienceaswellstreamlineback-office processing expenses, partiallyoffset bylowerincometaxes. the samequarterlastyear, primarilyduetolowercontributionsfrominvestmentexperienceandhigheroperating Retirement. billion fromthesamequarterlastyear, primarilyduetohighertransfersfromretailinvestmentoptionsinEmpower participant accountshavegrowntoover8millionatMarch31,2016from7.32015. to thesamequarterlastyear, primarilyduetohigherlargeplansalesinEmpowerRetirement.Retirement 3 _ C G W 24 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 rd 6 - Annual MutualFundIndustry Awards, EmpowerRetirement,thesecondlargestretirementservices 0 5 _ v 1 . i n d d

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In 2015,thesecostsdecreasednet

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM usiness 25 (1) C 2015 March 31 86 120 63 97 349 295 260 238 15,493 7,977 20,761 9,891 2015 Dec. 31 $5,087$2,730 $3,796$2,202 90 67 321 234 For the three months ended For the three months 20,270 27,770 2016 $3,729 March 31 March 31 $2,722 Management's Discussion and Analysis and Discussion Management's  27 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER (US$) 5 (US$) 2 C

d d n i . 1 v _ (US$) 5 0 - (1) 6 0 - 6 1 0 2 (1) (US$) _ L units. W G Company's b sales (a non-IFRS financial measure) have been restated to improve consistency across the Comparative figures for _ Sales Premiums and deposits 3

Premiums and deposits same of 2016 increased by US$0.5 billion to US$2.7 billion compared to the Premiums and deposits for the first quarter US$60 million in Individual Markets. due to increases of US$460 million in Empower Retirement and quarter last year, The increase in was due to higher transfers from retail investment options. The increase in Empower Retirement to higher sales in the executive benefits line of business. Individual Markets was primarily due quarter, quarter of 2016 decreased by US$1.1 billion compared to the previous Premiums and deposits for the first Retirement in the fourth quarter of 2015, which did not recur in 2016. primarily due to one large sale in Empower Sales last by US$12.3 billion to US$20.3 billion compared to the same quarter Sales in the first quarter of 2016 increased Approximately 90% of the in-quarter sales to an increase in Empower Retirement driven by large plan sales. due year, over 200,000 participants. increase related to one new client with due to an primarily by US$4.8 billion compared to the previous quarter, Sales in the first quarter of 2016 increased sales was primarily due to the same The increase in Empower Retirement increase in Empower Retirement sales. reason discussed for the in-quarter results. Fee and other income under administration, shareholder servicing Fee income is derived primarily from assets under management, assets fees are earned based services. Generally, fees, administration and record-keeping services and investment advisory of plans and participants for which services on assets under management, assets under administration or the number are provided. to US$234 million compared to the same Fee and other income for the first quarter of 2016 decreased by US$4 million fees driven by lower average equity market levels and one-time which reflects lower asset-based quarter last year, by growth in assets and participants. adjustments to fee income, partially offset The compared to the previous quarter. Fee and other income for the first quarter of 2016 decreased by US$26 million to variable asset-based fees of US$18 fourth quarter of 2015 included a one-time adjustment to fee income relating US$8 million, primarily due to the same million. Excluding the impact of this item, fee and other income decreased reasons discussed for the in-quarter results. (1) 0 Sales g Fee and other income Premiums and deposits Premiums and deposits Fee and other income Net earnings Net earnings OPERATING RESULTS OPERATING n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C25 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C26 C C

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U GREAT-WEST LIFECO INC. A T 1 earnings anddidnotrecur. contingent considerationrelatedtotheJ.P. MorganRetirementPlanServicesacquisitionthatpositivelyimpactednet based feesdrivenbyloweraverageequitymarketlevels. The fourthquarterof2015includedanadjustmenttothe to lowerincometaxesasdiscussedforthein-quarterresults,partiallyoffset bylowerfeeincomerelatedtoasset- Net earningsforthefirstquarterof2016increasedbyUS$4millioncomparedtopreviousquarter, primarilydue development expensesrelatedtoEmpowerRetirement,comparedUS$6millionforthefirstquarterof2015. election toclaimforeigntaxcredits.Firstquarter2016resultsincludeUS$5millionofstrategicandbusiness primarily bybusinessgrowth. The decreaseswerepartiallyoffset bylowerincometaxes,drivenamanagement last year, primarilyduetolowercontributionsfrominvestmentexperienceandhigheroperatingexpenses,driven Net earningsforthefirstquarterof2016decreasedbyUS$30milliontoUS$67comparedsame Net earnings _ • At the 23 FiveofPutnam'smutualfundsreceivedthe2016LipperFund Awards tohonourtheirconsistent, strongrisk-adjusted • 31, 2016wasUS$183million,adecreaseofUS$41millioncompared FeeincomeforthethreemonthsendedMarch • 31, 2016wereUS$9.0billion,anincreaseofUS$0.8billioncomparedto SalesforthethreemonthsendedMarch • 31, 2016ofUS$145.8billiondecreasedbyUS$13.4 Putnam’s endingassetsundermanagement(AUM)atMarch • 2016 DEVELOPMENTS ASSET MANAGEMENT

E n g 0 for itsindustryleadingsocialmediaplatforms. performance relativetotheirpeersforperiodsofthreeyearsormore. to thesamequarterlastyear. the samequarterlastyear. asset outflows. billion comparedtothesamequarterlastyear, primarilyduetothecumulativeimpactofnegativemarketsandnet billion comparedtothesamequarterlastyear, whileaverage AUM ofUS$141.4billiondecreasedbyUS$17.0 3 _ C G W 26 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 rd - 0 Annual MutualFundIndustry Awards, Putnamwontheinaugural"SocialMediaLeaderof Year Award" 6 - 0 5 _ v 1 . i n d d

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM arnings ges and 27 net earnings ctions. C 2015 March 31 915 14 3 44 42 12 20 23 15 17 12 1841 (13) 2 11 3 1431 (10) 2 33 34 218 213 288 278 163 172 216 224 13.5% 9.2% 2015 Dec. 31 $ 151,216 $ 158,396 $ 10,869 $ 10,232 $ 8,111 $ 8,252 (5) (8) (6) (4) 42 14 31 11 (17) (12) (25) (18) 199 250 145 183 For the three months ended For the three months (12.3)% 2016 March 31 March 31 Management's Discussion and Analysis and Discussion Management's $ 141,391 $ 12,388 $ 9,042  29 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER (1) (1) (2) (1) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER (1) 7 2 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L allocations, fair value adjustments related to stock-based compensation, certain tax adjustments and other non-recurring transa allocations, fair value adjustments related to stock-based compensation, certain tax adjustments (loss) includes the impact of dealer commissions and software amortization, and excludes the impact of corporate financing char (loss) includes the impact of dealer commissions and software amortization, and excludes (loss) divided by the sum of fee income and net investment income. Core net earnings (loss) (a non-IFRS financial measure) is a measure of the Asset Management business unit's performance. Core Core net earnings (loss) (a non-IFRS financial measure) is a measure of the Asset Management business unit's pre-tax core net e Pre-tax operating margin (a non-IFRS financial measure) is a measure of the W G Less: Financing and other expenses (after-tax) (US$) Less: Financing and other expenses (after-tax) fees Investment management Service fees Performance fees Underwriting & distribution fees Underwriting & distribution Investment management fees (US$) Service fees (US$) Performance fees (US$) Underwriting & distribution fees (US$) _ 3

(1) (2) Sales compared to the same quarter last year, Sales in the first quarter of 2016 increased by US$0.8 billion to US$9.0 billion a US$0.6 billion decrease in mutual fund sales. by due to a US$1.4 billion increase in institutional sales, partially offset due to an increase in the previous quarter, Sales in the first quarter of 2016 increased by US$0.9 billion compared to institutional and mutual fund sales of US$0.2 billion and US$0.7 billion, respectively. 0 g Average assets under management (US$) Sales Fee income Fee income Core net earnings (loss) Fee income (US$) Reported net earnings (loss) Sales (US$) Reported net earnings (loss) (US$) Pre-tax operating margin (US$) Fee income (US$) Core net earnings (loss) (US$) OPERATING RESULTS OPERATING n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C27 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C28 C C

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U GREAT-WEST LIFECO INC. A T 1 decreased byUS$7million,primarilyduetolowerincometaxesasdiscussedforthein-quarterresults. estimates ofUS$27million.Excludingtheseadjustmentsinthepreviousquarter, financingandotherexpenses quarter of2015,financingandotherexpensesincludedthepositiveimpactadjustmentstocertainincome tax of 2016wereUS$6millioncomparedtoanexpenserecoveryUS$14forthepreviousquarter. Inthefourth compared tonetearningsofUS$31millioninthepreviousquarter. Financingand otherexpensesforthefirstquarter results. The reportednetloss,includingfinancingandotherexpenses,forthefirstquarterof2016wasUS$18million primarily relatingtoanewleaseagreement,partiallyoffset bylowerincometaxesasdiscussedforthein-quarter income drivenbyunrealizedlossesonseedcapital,highercompensationcostsandone-timeexpensesofUS$5million the previousquarter. The changeinnetearningswasprimarilyduetolowerfeeincomeandinvestment The corenetlossforthefirstquarterof2016wasUS$12millioncomparedtoearningsUS$17 lower incometaxes,drivenbyamanagementelectiontoclaimforeigntaxcreditsofUS$6million. quarter of2016decreasedbyUS$4milliontoUS$6comparedthesamelastyear, primarilydueto compared tonetearningsofUS$2millionforthesamequarterlastyear. Financingandotherexpensesforthefirst million. Inthefirstquarterof2016,reportednetloss,includingfinancingandotherexpenses,wasUS$18million were partiallyoffset bylowerincometaxes,drivenamanagementelectiontoclaimforeigntaxcreditsofUS$3 seed capital,aswellone-timeexpensesofUS$5millionprimarilyrelatingtoanewleaseagreement. The decreases by decreased earnings net core recovery, expense this US$19 million,primarilyduetolowernetfeeincomeandinvestmentincome,drivenbyunrealizedlosseson Excluding recur. not did that million US$5 of recoveries earnings ofUS$12millionforthesamequarterlastyear. Corenetearningsinthefirstquarterof2015includedexpense The corenetloss(anon-IFRSfinancialmeasure)forthefirstquarterof2016wasUS$12millioncomparedto Net earnings to theseasonalityinwhichthesefeesareearned. to adecreaseininvestmentmanagementfeesdrivenbyloweraverage AUM andadecrease inperformancefeesdue Fee incomeforthefirstquarterof2016decreasedbyUS$33millioncomparedtopreviousquarter, primarilydue outflows. AUM, resultingfromthecumulativeimpactofnegativemarketperformanceovertwelvemonthperiodandnetasset last year. The decreasewasprimarilyduetoaininvestmentmanagementfeesdrivenbyloweraverage Fee incomeforthefirstquarterof2016decreasedbyUS$41milliontoUS$183comparedsame sales. on financialmarkets,therelativeperformanceofPutnam’s investmentproducts,thenumberofretailaccountsand service fees,aswellunderwritinganddistributionfees.Generally, feesareearnedbasedon AUM andmaydepend Fee incomeisderivedprimarilyfrominvestmentmanagementfees,performancetransferagencyandother Fee income _

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 29 2015 C March 31 2,936 1,613 1,087 (419) 3,859 2,644 4,252 5,608 (1,204) 23 (2,772) (3,063) (6,543)(2,291) (5,166) 442 80,180 87,269 71,036 71,127 2015 Dec. 31 $ 148,370 $ 159,208 $ 146,638 $ 157,572 $ 151,216 $ 158,396 907 (864) 4,083 4,959 (1,703) (3,176) (2,610) (7,569) For the three months ended For the three months 72,522 68,869 2016 March 31 March 31 Management's Discussion and Analysis and Discussion Management's  31 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 2 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G _ Ending assets $ 145,803 Impact of market/performance Net asset flows - Total Net asset flows - Institutional Redemptions - Institutional Net asset flows - Mutual funds Net asset flows - Mutual Sales - Institutional Redemptions - Mutual funds Redemptions - Mutual Beginning assetsSales - Mutual funds $ 148,370 Average assets under management Average Mutual funds Assets under management ($US) Assets under management Institutional assets Total average assets under management $ 141,391 3

The Europe segment comprises two distinct business units: Insurance & Annuities and Reinsurance, together with an The Europe segment comprises two distinct business units: Insurance & Annuities provides protection and wealth management allocation of a portion of Lifeco's corporate results. Insurance & Life in the U.K., the Isle of Man and products, including payout annuity products, through subsidiaries of Canada as well as through Irish Life in Ireland. Reinsurance operates primarily in the U.S., Barbados and Ireland, Germany, and is conducted through Canada Life, London Life and their subsidiaries. UNITED STATES CORPORATE UNITED STATES allocated to the United States business units, United States Corporate consists of items not associated directly with or including the impact of certain non-continuing items related to the U.S. segment. to both the same quarter last year and to the In the first quarter of 2016, the net loss of US$2 million was comparable previous quarter. EUROPE Average AUM for the three months ended March AUM for the three months ended March Average billion compared 31, 2016 was US$141.4 billion, a decrease of US$17.0 the twelve month period primarily due to the cumulative impact of negative markets over to the same quarter last year, nominal outflows for the first quarter of 2016 were US$1.7 billion compared to as well as net asset outflows. Net asset outflows were US$2.6 billion and In-quarter mutual fund net asset last year. net asset inflows in the same quarter billion. institutional net asset inflows were US$0.9 the impact of negative markets primarily due to by 6% compared to the previous quarter, AUM decreased Average of 2016. and net asset outflows in the first quarter 0 g ASSETS UNDER MANAGEMENT ASSETS n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C29 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C30 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 periods. RefertotheCautionaryNoteregardingnon-IFRSFinancialMeasuresatbeginningofthisdocument. rates onIFRSresults. This measureprovidesusefulinformationasitfacilitatesthecomparabilityofresultsbetween Currency translationimpactisanon-IFRSfinancialmeasurethathighlightstheofchangesincurrency period. All incomeandexpenseitemsaretranslatedatanaverageratefortheperiod. Foreign currencyassetsandliabilitiesaretranslatedintoCanadiandollarsatthemarketrateendoffinancial TRANSLATION OFFOREIGNCURRENCY _ Duringthefirstquarterof2016,IrishLifeInvestmentManagers (ILIM)launcheditsnewMulti-AssetMulti-Strategy • OnMarch 9,2016,theCompanyannouncedthatithadreachedanagreementtoacquire Aviva HealthInsurance • OnFebruary19,2016,theCompanysuccessfullycompletedtransferofapproximately31,000annuitypolicies • InEurope,SolvencyIIregulationscameintoeffect onJanuary1,2016. All oftheCompany'sregulatedEuropean- • PremiumsanddepositsforthethreemonthsendedMarch 31, 2016were$7.8billion,anincreaseof$1.2billion • Netearningsforthefirstquarterof2016$287millionwerecomparabletosamelastyear. • 2016 DEVELOPMENTS

E Total assets Selected consolidatedfinancialinformation-Europe Premiums anddeposits Fee andotherincome Net earnings-commonshareholders oa sesudramnsrto 229,777 $ Total assetsunderadministration Other assetsunderadministration Total assetsundermanagement Proprietary mutualfundsandinstitutionalnetassets n g 0 31, 2016from€48.5billionatMarch2015. Organization ofCanada(IIROC)advisors. Assets undermanagementforILIMhavegrownto€51.0billionatMarch Fund rangetoitsnetworkofCanadianMutualFundsDealer Association (MFDA)andInvestmentIndustryRegulatory approvals. participants. The transactionisexpectedtocloseinthethirdquarterof2016andsubjectcustomaryregulatory one oftheleadingprovidersinIrishhealthinsurancemarket,servicingacustomerbasemorethan400,000 Financial ServicesLimited(GloHealth)to100%ownership. Aviva HealthandGloHealthwillcombinetobecome Ireland Limited(Aviva Health),anIrishhealthinsuranceprovider, andtoincreaseits49%interestinGloHealth from EquitableLife,whichwasacquiredinthefirstquarterof2015. managing thepotentialcapitalvolatilityundernewregulations. sensitive tointerestratemovementsthanthepreviousregime.In2016,Companywillcontinuefocus on The capitalregimehasmovedfromafactor-basedapproachtomorerisk-basedmethodologywhichis more risk-focused BoardofDirectorsinvolvement,whichfitswellwiththeCompany'sexistingphilosophyandculture. regime andanewgovernance/supervisoryapproach. The newgovernanceregimefocusesonmoreactiveand based subsidiariesarepositionedtomeetthenewrequirements.SolvencyIIencompassesbothacapital agreements andtheimpactofcurrencymovement. from thesamequarterlastyear, primarilyduetohighersalesinIreland,newandrestructuredreinsurance 3 _ C G W 30 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 3 0 32  Management's Discussionand Analysis 7,841 $ 159,961 $ March 31 2016 189,874 39,903 29,913 For thethreemonthsended 321 287 ,5 6,673 $ 6,056 $ 6,6 152,743 $ 167,265 $ 3,6 222,609 $ 238,062 $ Dec. 31 2015 9,7 175,080 196,475 15747,529 41,587 92022,337 29,210 2 327 327 0 286 303 March 31 2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 g 0 - 6 116-05-11 3:12 PM 31 C 2015 March 31 320 322 234 216 3,917 4,456 2015 Dec. 31 $4,497$5,160 316 226 4,574 For the three months ended 2016 March 31 Management's Discussion and Analysis and Discussion Management's $5,674  33 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 3 C

d d n i . 1 v _ 5 0 Canada Life Group Insurance, in the U.K., retained the Number One Group Risk Provider position in the Number One Group Risk Provider Insurance, in the U.K., retained the Canada Life Group year in a row. survey of 2016, for the third Swiss Re ‘Group Watch’ of Canada Life in the Canada Life Investments, a subsidiary Awards, Trophy Funds At the 2016 European funds category)". Company (41-70 rated Asset Management "Best U.K. U.K., was awarded Irish Life was awarded the Life Sector overall winner in the 2016 Irish Brokers Association Annual Insurance Annual Insurance Association 2016 Irish Brokers the Life Sector overall winner in the Irish Life was awarded a row. for the sixth year in Awards Service - 6 0 - 6 1 0 2 _ L W G _ 3

Premiums and deposits same quarter of 2016 increased by $0.5 billion to $5.7 billion compared to the Premiums and deposits for the first in the first quarter of 2015. Excludin which included the acquisition of Equitable Life's annuity business quarter last year, to higher premiums and deposits increased by $2.1 billion primarily due the impact of the Equitable Life acquisition, payout higher pension sales in Ireland and Germany and higher sales of retail fund management sales in Ireland, impact of currency movement. annuities in the U.K., as well as the primarily of 2016 increased by $1.2 billion compared to the previous quarter, Premiums and deposits for the first quarter These increases were partially in Ireland and the impact of currency movement. due to higher fund management sales of wealth reflecting normal seasonal fluctuations, and lower sales by lower pension sales in Ireland and Germany, offset management products in the U.K. Sales which to the same quarter last year, Sales for the first quarter of 2016 increased by $0.1 billion to $4.6 billion compared of 2015. Excluding the impact of the included the acquisition of Equitable Life's annuity business in the first quarter discussed for premiums and deposits for Equitable Life acquisition, sales increased by 60% due to the same reasons the in-quarter results. due to the reasons discussed for quarter, Sales for the first quarter of 2016 increased by $0.7 billion from the previous premiums and deposits for the same period. BUSINESS UNITS – EUROPE BUSINESS UNITS ANNUITIES INSURANCE & RESULTS OPERATING 0 g Fee and other income Premiums and deposits Sales Net earnings • of awards: 2016, the Company received a number During the first quarter of n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C31 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C32 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 from investmentexperience. These decreaseswerepartiallyoffset byhighernewbusinessvolumesinU.K.payoutannuitiesandcontributions was primarilyduetolowercontributionsfromactuarialliabilitybasischangesandlessfavourablemorbidityexperience. Net earningsforthefirstquarterof2016decreasedby$8millioncomparedtopreviousquarter. The decrease less favourablemorbidityexperience. tax balances. These increaseswerepartiallyoffset bylowercontributionsfromactuarialliabilitybasischanges and from investmentexperienceandlowerincometaxes,includingtheimpactofU.K.corporatetaxratechangesondeferred year. The increasewasprimarilyduetohighernewbusinessvolumesinU.K.payoutannuities,contributions Net earningsforthefirstquarterof2016increasedby$10millionto$226comparedsamelast Net earnings to thesamereasonsdiscussedforin-quarterresults. Fee andotherincomeforfirstquarterof2016decreasedby$4millioncomparedtothepreviousquarter, primarilydue business isparticularlysensitivetothemarketlevelsatstartandendofareportingperiod. of Irishunit-linkedbusiness,partiallyoffset bytheimpactofcurrencymovement. The feeincome onthisblockof last year. The decreasewasprimarilyduetolowerinvestmentgainrelatedfeeincomeassociatedwith aclosedblock Fee andotherincomeforthefirstquarterof2016decreasedby$6millionto$316comparedsame Fee andotherincome Premiums anddeposits Net earnings Fee andotherincome _ previous quarter. Fee andotherincomeforthefirstquarterof2016$5millionwascomparabletosamelastyear andthe Fee andotherincome due tothesamereasonsdiscussedforin-quarterresults. Premiums anddepositsforthefirstquarterof2016increasedby$0.6billioncomparedtopreviousquarter, primarily the impactofcurrencymovement. to thesameperiodlastyear. The increasewasprimarilyduetonewandrestructuredreinsuranceagreements For thethreemonthsendedMarch31,2016,premiumsanddepositsincreasedby$0.7billionto$2.2compared correlated topremiumsreceived. where claimsarenotincurredbythereinsureruntilathresholdisexceeded.Earningstherefore directly contract liabilitiesareassumedonaproportionatebasiswilltypicallyhavesignificantlyhigherpremiumsthan treaties certain lifereinsurancetransactions,premiumswillvarybasedontheformoftransaction. Treaties whereinsurance Reinsurance premiumscanvarysignificantlyfromperiodtodependingonthetermsofunderlyingtreaties. For Premiums anddeposits OPERATING RESULTS REINSURANCE

E n g 0 3 _ C G W 32 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 3 2 34  $2,167 Management's Discussionand Analysis March 31 2016 For thethreemonthsended 63 5 ,5 1,513 $ 1,559 $ Dec. 31 2015 377 73 75 March 31 2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 33 C Property, Plant Property, IAS 16 Consolidated Financial IFRS 10 Joint Arrangements, Management's Discussion and Analysis and Discussion Management's  Investments in Associates and Joint Ventures Investments in , IAS 28 35 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER effective January 1, 2016. The adoption of these narrow scope January 1, 2016. effective Presentation of Financial Statements, , IAS 1 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Intangible Assets Disclosure of Interests in Other Entities 3 3 C

d d n i . , IAS 38 1 v _ 5 , IFRS 12 0 - 6 0 - 6 1 0 2 _ Annual Improvements 2012 - 2014 Cycle L W G _ 3

and financial statements. amendments did not have a significant impact on the Company’s significant changes there have been no In regards to future accounting policy changes that could impact the Company, Annual MD&A. from the disclosure included in the Company's 2015 Statements The Board of Directors is ultimately responsible for the Company's governance principles and policies. These include for the Company's governance principles and policies. The Board of Directors is ultimately responsible the guiding principles of risk management, and the Risk which establishes the Enterprise Risk Management Policy, in its aggregate levels and types of risk that the Company is willing to tolerate Appetite Framework, which reflects the the first quarter of 2016, there were no significant changes to the Company's business activities and operations. During the for a detailed description of Annual MD&A risk management and control practices. Refer to the Company's 2015 Company's risk management and control practices. ACCOUNTING POLICIES REPORTING STANDARDS FINANCIAL INTERNATIONAL impacting the Company in 2016, as well as Due to the evolving nature of IFRS, there are a number of IFRS changes The Company actively monitors future IFRS standards that could impact the Company in future reporting periods. Accounting Standards Board (IASB) to assess if the changes to the standards changes proposed by the International may have an impact on the Company's results or operations. The Company adopted the narrow scope amendments to IFRS for IFRS 11 LIFECO CORPORATE OPERATING RESULTS OPERATING LIFECO CORPORATE major operating results for activities of Lifeco that are not associated with the The Lifeco Corporate segment includes business units of the Company. to both the same quarter last 31, 2016 of $6 million was comparable March The net loss for the three months ended year and to the previous quarter. PRACTICES AND CONTROL RISK MANAGEMENT EUROPE CORPORATE items as well as the the impact of certain non-continuing account includes financing charges, The Europe Corporate international businesses. results for the legacy for the had a net loss of $2 million compared to a net loss of $7 million In the first quarter of 2016, Europe Corporate million relating to the integration of First quarter 2016 results include restructuring costs of $1 same quarter last year. to the Limited (LGII), compared to $6 million of restructuring costs relating Legal & General International (Ireland) quarter last year. integration of Irish Life for the same March The net loss for the three months ended $2 million in the current quarter, 31, 2016 decreased from $4 million to relating to the integration of LGII. primarily due to lower restructuring costs and Equipment 0 g Net earnings to the same quarter last $14 million to $63 million compared first quarter of 2016 decreased by Net earnings for the liability basis changes and less lower contributions from insurance contract The decrease was primarily due to year. impact of currency movement. by lower new business strain and the experience, partially offset favourable claims The decrease quarter. $10 million compared to the previous first quarter of 2016 decreased by Net earnings for the less favourable claims contract liability basis changes and to lower contributions from insurance was primarily due experience. n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C33 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C34 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 _ Related partytransactionshavenotchangedmateriallyfromDecember31,2015. TRANSACTIONS WITHRELATED PARTIES control overfinancialreporting. 31, 2016thathavemateriallyaffected, orarereasonablylikelytomateriallyaffect, theCompany'sinternal ended March There havebeennochangesintheCompany'sinternalcontroloverfinancialreportingduringthreemonth period assurance withrespecttofinancialstatementpreparationandpresentation. changes inconditions. Therefore, eventhosesystemsdeterminedtobeeffective can provideonlyreasonable financial reporting. All internalcontrolsystems haveinherentlimitationsandmaybecomeineffective becauseof IFRS. The Company’s managementisresponsibleforestablishingandmaintainingeffective internalcontrolover reliability offinancialreportingandthepreparationstatementsforexternalpurposesinaccordance with The Company’s internalcontroloverfinancial reportingisdesignedtoprovidereasonableassuranceregardingthe INTERNAL CONTROL OVERFINANCIAL REPORTING appropriate, toallowtimelydecisionsregardingrequireddisclosure. including thePresidentandChiefExecutiveOfficer andtheExecutiveVice-President andChiefFinancialOfficer, as territorial securitieslegislation,and(b)accumulatedcommunicatedtotheCompany'sseniormanagement, legislation is:(a)recorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedinprovincial relating totheCompanywhichisrequiredbedisclosedinreportsfiledunderprovincialandterritorialsecurities The Company’s disclosurecontrolsandproceduresaredesigned toprovidereasonableassurancethatinformation DISCLOSURE CONTROLS AND PROCEDURES $2,410 millionandfeeotherincomeof$1,254million. net investmentincomeof$1,673million,apositivechangeinfairvaluethroughprofitorlossonassets Total revenuefor thefirstquarterof2016was$12,352millionandcomprisespremiumincome$7,015million,regular diluted) forthefirstquarterof2016comparedto$0.702percommonshare($0.700ayearago. compared to$700millionreportedayearago.Onpersharebasis,thisrepresents$0.625common($0.623 Lifeco's consolidatednetearningsattributabletocommonshareholderswere$620millionforthefirstquarterof2016 (1) QUARTERLY FINANCIAL INFORMATION OTHER INFORMATION Net earnings Common shareholders

E Total revenue (in $millions,exceptpershareamounts) Quarterly financialinformation n g 0 3 Revenue includesthechangeinfairvaluethroughprofitorlossoninvestmentassets. _ Diluted -pershare Basic -pershare Total C G W 34 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - (1) 0 5 _ v 1 . i n d d

C 3 4 $12,352 2016 Q1 0.623 0.625 620 ,2 ,9 ,2 269$1,2 ,5 10,070 $ 8,451 $ 10,723 $ 12,679 $ 4,224 $ 8,596 $ 8,321 $ 4Q 2Q 4Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 .8 .2 .5 .0 .5 .8 0.615 0.616 0.686 0.687 0.657 0.658 0.700 0.702 0.659 0.661 0.722 0.724 0.686 0.688 8 2 5 0 5 8 615 687 657 700 659 720 683 36 052014 2015  Management's Discussionand Analysis 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 2015 35 Mar. 31 C 2015 June 30 2015 Sept. 30 2015 Dec. 31 $ 1.38$ $ 1.34 1.34 $ $ 1.31$ 1.25 $ $ 2.04$ 1.23 $ 1.27 $ 2.03 2.02 $ 1.24 $ 2.03$ 1.96 $ $ 1.50$ 1.89 $ 1.88 $ 1.46 1.50 $ 1.88 $ 1.46 1.39 $ $ 1.36 1.36 $ 1.40 Management's Discussion and Analysis and Discussion Management's 2016  $1.30 $1.37 $1.87 $1.96 $1.48 $1.51 37 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 3 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G _ Translation of foreign currency Translation of foreign Period ended 31 Mar. United States dollar Balance sheet Income and expenses British pound Balance sheet Income and expenses Euro Balance sheet Income and expenses 3

Additional information relating to Lifeco, including Lifeco's most recent consolidated financial statements, CEO/CFO including Lifeco's most recent consolidated financial statements, CEO/CFO Additional information relating to Lifeco, Form are available at www.sedar.com. Annual Information certification and 0 g TRANSLATION OF FOREIGN CURRENCY TRANSLATION The four primary currencies are in multiple currencies. subsidiaries, Lifeco conducts business Through its operating foreign currency assets Throughout this document, and the euro. the British pound the U.S. dollar, the Canadian dollar, and All income period. market rate at the end of the reporting into Canadian dollars at the and liabilities are translated rates employed are: The period. translated at an average rate for the expense items are n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C35 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C36 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 e anns-cmo hrhles$620 $ 680 656 Earnings percommonshare(note11) Net earnings-commonshareholders Preferred sharedividends Attributable tonon-controllinginterests Net earningsbeforenon-controllinginterests Income taxes(note14) Earnings beforeincometaxes Net earnings Benefits andexpenses Income _ E Restructuring andacquisitionexpenses Amortization offinitelifeintangibleassets Financing charges(note9) Premium taxes Commissions Operating andadministrativeexpenses Total paidorcreditedtopolicyholders Policyholder dividendsandexperiencerefunds Changes ininsuranceandinvestmentcontractliabilities Total netpolicyholderbenefits Net investmentincome(note4) Fee andotherincome Total netinvestmentincome Policyholder benefits Total netpremiums Premium income n iue 0.623 0.625 $ $ Diluted Basic Regular netinvestmentincome Changes infairvaluethroughprofitorloss Ceded premiums Gross premiumswritten g 0 Ceded Gross 3 _ C G W 36 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C CONSOLIDATED STATEMENTS OFEARNINGS 3 6 (in Canadian$millionsexceptpershareamounts) 38 $7,926  March 31 2016 12,352 For thethreemonthsended 1,208 9,678 3,139 6,170 1,254 4,083 6,642 7,015 1,673 2,410 (472) (911) 651 566 369

31 24 46 78 92 (unaudited) 4 5 $683$700 $0.686$0.700$0.688$0.702 $7,117$7,806 eebr3 March31 December 31 052015 2015 ,7 1,078 1,175 ,3 9,889 5,532 ,1 5,157 5,514 ,2 12,679 1,258 8,321 1,333 ,6 5,640 6,060 ,6 6,932 6,162 ,7 1,536 1,670 33 4,351 (303) 56 (483) (546) 84 2,953 (844) 95 (874) (955) 1 732 714 5 769 993 755 821 8 515 584 2 381 321 2 4,489 826 132 31 224 66 736 37 137 41 377 73 284 92 77 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 37 C 57 311 (3) (73) (1) (1) —20 —— —12 —1 10 (28) 10 51 (44) 130 (27) (135) (19) 48 (52) (42) 291 733 116 (223) 101289 (169) 511 188 680 (unaudited) 2015 2015 December 31 March 31 $ 714 $ 732 $ 1,003 $ 1,243 4 1 6 3 (1) (5) 10 95 19 62 (24) (31) (36) 121 (984) (242) For the three months ended For the three months 2016 March 31  39 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER (in Canadian $ millions) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 3 C

d d n i . 1 v _ 5 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF COMPREHENSIVE STATEMENTS CONSOLIDATED 0 - 6 0 - 6 1 0 2 _ L W Income tax expense Income tax (expense) benefit Income tax (expense) benefit Income tax expense Income tax expense Income tax (expense) benefit Income tax benefit G net investment in foreign operations operations benefit plans (note 13) _ of Earnings Earnings 3 Unrealized foreign exchange gains on euro debt designated as hedge of the Unrealized foreign exchange gains on euro assets Unrealized gains (losses) on available-for-sale Unrealized foreign exchange gains (losses) on translation of foreign gains (losses) on translation of Unrealized foreign exchange Realized gains on available-for-sale assets Unrealized gains (losses) on cash flow hedges Non-controlling interests Realized losses on cash flow hedges Total items that will not be reclassified (166) Re-measurements on defined benefit pension and other post-employment Re-measurements on defined benefit pension Non-controlling interests Total items that may be reclassified (836) 0 g Net earnings $ 651 Other comprehensive income (loss) Other comprehensive Statements subsequently to Consolidated Items that may be reclassified Total other comprehensive income (loss)Comprehensive income (loss) (1,002) $ (351) Items that will not be reclassified to Consolidated Statements of Items that will not be reclassified to Consolidated n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C37 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C38 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 Contributedsurplus oa iblte n qiy$390,245 $ Total liabilitiesandequity Total equity Accumulatedothercomprehensiveincome Accumulatedsurplus Commonshares Preferredshares Sharecapital(note10) Shareholders' equity Assets _ E Non-controllinginterestsinsubsidiaries Participatingaccountsurplusinsubsidiaries Non-controlling interests Equity Total liabilities Investment andinsurancecontractsonaccountofsegregatedfundpolicyholders(note8) Current incometaxes Other liabilities Deferred taxliabilities Accounts payable Capital trustsecurities Funds heldunderreinsurancecontracts Derivative financialinstruments Debentures andotherdebtinstruments Investment contractliabilities(note7) Insurance contractliabilities(note7) Liabilities Total assets Investments onaccountofsegregatedfundpolicyholders(note8) Deferred taxassets Current incometaxes Reinsurance assets(note7) Premiums incourseofcollection,accountsandinterestreceivable Derivative financialinstruments Owner occupiedproperties Fixed assets Other assets Intangible assets Goodwill Funds heldbycedinginsurers Loans topolicyholders Investment properties(note4) Stocks (note4) Mortgage loans(note4) Bonds (note4) Cash andcashequivalents n g 0 3 _ C G W 38 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 2,471 5 _ v 1 . i n d d

C 3 8 CONSOLIDATED BALANCESHEETS 3,494 (in Canadian$millions) 40 

(unaudited) 155,352 $ 390,245 $ 2,923 $ March 31 2016 24,531 10,672 365,714 193,001 193,001 159,663 114,141 1,216 7,167 2,514 12,954 21,402 106 248 2,608 1,470 1,983 2,015 5,284 2,116 1,770 5,144 3,833 3,878 5,896 8,321 5,049 7,827 514 161 324 602 638 296 99 399,935 $ December 31 158,492 $ 399,935 $ 2,813 $ (note 16) 2015 25,260 10,431 374,675 198,194 198,194 161,581 114,943 2,218 7,156 2,514 15,512 22,021 135 195 2,611 1,586 3,367 1,755 2,624 5,395 2,253 1,891 5,131 3,553 2,643 4,036 5,913 8,694 5,237 7,873 492 161 356 461 653 298 69 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM — 24,891 23,202 39 Total Total equity equity C $ 24,531 $ 22,888 4919 19 39 53 2,856 2,788 2,741 2,705 Non- Non- interests interests controlling controlling (unaudited)

other other income income Accumulated Accumulated comprehensive comprehensive  March 31, 2015 March 31, 2016 surplus surplus Accumulated Accumulated $ 9,491 $ 889 $ 99 41 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER surplus surplus Contributed Contributed (in Canadian $ millions) —16———16 ——(31)——(31) — —— (343) — — (19) — — (343) —— — — 651 — (1,002) — (23) 5 (1,025) 656 1517 (45) — — (17) — — — — 5721 (43) — — (21) — — — — (21)————(21) (26)————(26) 9,670 135 11,082 1,216 9,616 126 9,866 889 Share Share capital capital POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 3 C

d d n i CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY OF CHANGES STATEMENTS CONSOLIDATED . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W G Common shareholders Preferred shareholders (note 11) Preferred shareholders (note Preferred shareholders (note 11) — — (32) — — (32) _ Course Issuer Bid (note 10) payment plans (note 10) per Normal Course Issuer Bid (note 10) Course Issuer Bid (note 10) payment plans (note 10) per Normal Course Issuer Bid (note 10) 3 Common shareholders — — (325) — — (325) 0 g Share-based payment plans expense Shares purchased and cancelled under Normal Balance, end of period $ 9,681 $ 106 $ 10,672 $ 1,216 $ Dividends to shareholders Dividends to shareholders Shares exercised and issued under share-based Excess of redemption proceeds over stated capital Dilution loss on non-controlling interests Balance, beginning of year Balance, beginning of year Net earnings Other comprehensive loss $ 9,670 $ 135 $ 10,431 $ 2,218 $ 2,806 $ 25,260 Share-based payment plans expenseShares purchased and cancelled under Normal — 16 — — — 16 Shares exercised and issued under share-based Excess of redemption proceeds over stated capital Dilution gain on non-controlling interestsBalance, end of period — $ 9,668 — $ 3 — (3) — Dividends to shareholders Balance, beginning of year Net earnings Other comprehensive income $ 9,616 $ — 126 $ — — 9,134 $ — 378 — $ 2,643 732 $ 511 21,897 — 25 37 536 769 n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C39 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C40 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 ahadcs qiaet,edo eid$2,923 110 $ 2,813 Supplementary cashflowinformation Cash andcashequivalents,endofperiod Cash andcashequivalents,beginningofperiod Increase incashandequivalents Effect ofchangesinexchangerates oncashandequivalents Investment Activities Financing Activities Operations _ Dividendincomereceived E Interestpaid Interestincomereceived Investment inmortgageloans Investment instocks Investment ininvestmentproperties Bond salesandmaturities Stock sales Mortgage loanrepayments Investment inbonds Change inloanstopolicyholders Dividends paidoncommonshares Dividends paidonpreferredshares Investment propertysales Increase (decrease)indebenturesandotherdebtinstruments Decrease inlineofcreditsubsidiary Purchased andcancelledcommonshares(note10) Issue ofcommonshares(note10) Adjustments: Income taxespaid,netofrefundsreceived Earnings beforeincometaxes n Changes infairvaluethroughprofitorloss Change inreinsuranceassets Change indeferredacquisitioncosts Change infundsheldunderreinsurancecontracts Other Change infundsheldbycedinginsurers Change ininsuranceandinvestmentcontractliabilities g 0 3 _ C G W 40 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n d d CONSOLIDATED STATEMENTS OFCASHFLOWS

C 4 0 (in Canadian$millions) 42  $77 1,356 $39$ 680 $ (unaudited)

2016 For thethreemonths ended March31 (8,314) (2,410) 7,610 1,125 1,366 3,208 (135) (752) (984) (708) (413) (343) (131) (188) 662 260 (74) (31) (41) (21) (58) 19 10 15 — (5) 8 $60 $40 3,197 $ 1,288 $ $993 2015 (9,937) (2,953) 2,498 9,837 1,092 2,851 (624) (360) (104) (180) (380) (325) 699 581 566 272 (32) (11) (43) (26) (92) (88) 91 11 10 88 57 4 9 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM effective effective 41 C Presentation as issued by the , IAS 1 Disclosure of Interests in Other (unaudited) Intangible Assets , IFRS 12  , IAS 38 Interim Financial Reporting Annual Improvements 2012 - 2014 Cycle Annual Improvements 2012 - 2014 Cycle and 43 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER Property, Plant and Equipment Property, Consolidated Financial Statements , IAS 16 , IFRS 10 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 4 C Investments in Associates and Joint Ventures Investments in

d d n i . 1 v $ millions except per share amounts) $ millions except per _

Joint Arrangements 5 0 , IAS 28 - 6 0 - 6 1 0 2 _ L Use of Significant Judgments, Estimates and Assumptions Use of Significant Judgments, Estimates and make significant judgments, estimates In preparation of these financial statements, management is required to disclosures. the reported amounts of assets, liabilities, net earnings and related and assumptions that affect management believes that the amounts Although some uncertainty is inherent in these judgments and estimates, where significant judgments have been recorded are reasonable. Key sources of estimation uncertainty and areas in note 2 of the Company's made are further described in the relevant accounting policies as described notes thereto. December 31, 2015 consolidated annual audited financial statements and January 1, 2016. The adoption of these narrow scope amendments did not have a significant impact on the The adoption of these narrow scope amendments January 1, 2016. statements. financial Company’s policies that could impact the Company, There have been no other significant changes to the future accounting statements. as disclosed in the December 31, 2015 consolidated annual audited financial of Financial Statements Entities Great-West Lifeco Inc. (Lifeco or the Company) is a publicly listed company (Toronto Stock Exchange: GWO), is a publicly listed company (Toronto Lifeco Inc. (Lifeco or the Company) Great-West Company is 100 Osborne Street North, The registered address of the domiciled in Canada. incorporated and (Power Financial) of the Power Financial Corporation Canada, R3C 1V3. Lifeco is a member Winnipeg, Manitoba, and its direct parent is Power Financial. group of companies insurance, retirement in the life insurance, health services holding company with interests Lifeco is a financial States and Europe primarily in Canada, the United management and reinsurance businesses, savings, investment Life), London Life Assurance Company (Great-West Life The Great-West through its major operating subsidiaries Annuity Life & Company (Canada Life), Great-West Assurance Canada Life The Insurance Company (London Life), Financial) and , LLC (Putnam). Insurance Company (Great-West at unaudited financial statements (financial statements) of the Company as The condensed consolidated interim 31, 2016 were approved by the Board of Directors on May 5, 2016. and for the three months ended March 31, 2015 consolidated read in conjunction with the Company's December These financial statements should be and notes thereto. annual audited financial statements with the 31, 2016 have been prepared in compliance at March The financial statements of the Company Accounting Standard (IAS) 34, requirements of International of computation Board (IASB) using the same accounting policies and methods Accounting Standards International 31, 2015 except as described statements for the year ended December followed in the consolidated financial below. for amendments to International Financial Reporting Standards (IFRS) The Company adopted the narrow scope IFRS 11 W G _ 3 (in Canadian 0 1. Corporate Information 2. Policies Accounting of Basis of Presentation and Summary g CONDENSED NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS STATEMENTS INTERIM FINANCIAL CONSOLIDATED TO CONDENSED NOTES n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C41 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C42 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 3. Business Acquisitions _ 2. BasisofPresentationandSummary Accounting Policies(cont'd) E n g 0 material impactontheCompany'sfinancialresults. approvals, isexpectedtobecompletedinthethirdquarterof2016. The transactionisnotexpectedtohavea leading providersintheIrishhealthinsurancemarket. The transaction,whichissubjecttonormalregulatory ownership. The Companyalsoannouncedthat Aviva HealthandGloHealthwillcombinetobecomeoneofthe company, andtoincreaseits49percentinterestinGloHealthFinancialServicesLimited(GloHealth)100 reached agreementstoacquire Aviva HealthInsuranceIrelandLimited(Aviva Health),anIrishhealthinsurance On March9,2016,theCompanyannouncedthatitsindirectwhollyownedIrishsubsidiary, IrishLifeGroupLimited, do nothaveathird-partycreditrating. credit ratingswhereavailable.Managementjudgmentisrequiredwhensettingforinstrumentsthat contract liabilitiesreliesuponinvestmentcreditratings. The Company'spracticeistousethirdpartyindependent and foreignexchangemarketconditions. The provisionforfuturecreditlosseswithintheCompany'sinsurance The resultsoftheCompanyreflectmanagement'sjudgmentsregardingimpactprevailingglobalcredit,equity 3 _ C G W 42 L _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n d d

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 43 Fair value C 57 57 534635 N/A 601 2,815 2,815 6,647 6,647 7,783 8,148 7,8735,237 7,305 5,237 11,53516,905 11,535 18,253 14,23822,021 15,298 23,446 114,943 116,291 December 31, 2015 value Carrying $ 83,688 $ 83,688 $ 150,074 $ 152,279 18,207 14,911 Fair value  50 50 459 N/A 622 623 6,696 6,696 2,709 2,709 7,694 8,113 7,827 7,369 11,37616,477 11,376 13,708 21,402 23,024 March 31, 2016 114,141 115,871 value Carrying $ 83,579 $ 83,579 45 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER (1) (1) (1) (2) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 4 C

d d n i . 1 v _ 5 0 total fair value amount presented. significantly reduces an accounting mismatch. Changes in the fair value of financial assets designated as significantly reduces an accounting mismatch. in insurance contract liabilities, since the by changes offset fair value through profit or loss are generally liabilities is determined with reference to the assets supporting the measurement of insurance contract liabilities. of earning investment income. that is actively traded for the purpose - 6 Fair value cannot be reliably measured, therefore the investments are held at cost and excluded from the profit or loss on initial recognition if it eliminates or financial asset is designated as fair value through A 0 Classified fair value through profit or loss Classified fair value - Designated fair value through profit or loss Designated fair value Available-for-sale Available-for-sale at cost Available-for-sale, Loans and receivables Residential Commercial Designated fair value through profit or loss Designated fair value through profit Equity method 6 (2) (1) During the period ended March 31, 2016, the Company completed the transfer of annuity policies from The transfer of annuity policies from During the period ended March 31, 2016, the Company completed the As a result, the related assets Assurance Society (Equitable Life) acquired during 2015. Equitable Life statements are now recorded presented as Funds Held by Ceding Insurers in the December 31, 2015 financial in Portfolio Investments. a portfolio as fair value through profit or loss on initial recognition if it is part of financial asset is classified A Bonds Mortgage loans Stocks 1 Investment propertiesTotal 5,049 5,049 $ 148,419 $ 151,313 0 2 _ L W (a) investments are as follows: and estimated fair values of portfolio Carrying values G _ 3 0 g 4. Portfolio Investments n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C43 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C44 C C

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U GREAT-WEST LIFECO INC. A T 1 _ 4. PortfolioInvestments(cont'd) E n g c Netinvestmentincomecomprisesthefollowing: (c) 0 b Includedinportfolioinvestmentsarethefollowing: (b) 3 _ C G W Carryingamountofimpairedinvestments 44 L _ oa ,3 3 3 7$9 4,083 $ 94 $ 87 $ 232 $ 239 $ 3,431 $ Total Changes infairvalueon Regular netinvestmentincome ended March31,2016 For thethreemonths 2 0 through profitorlossassets POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 December 31,2015. carrying valuesforloansandreceivablesarenetofallowances$24atMarch 31, 2016and$20at The carryingamountofimpairedinvestmentsincludesbonds,stocksandmortgageloans. The above 6 Other incomeandexpenses Net realizedgains Investment incomeearned oa 353 $ Total Impaired amountsbyclassification Recorded atfairvaluethrough Designated fairvaluethrough Classified fairvaluethrough Net allowancesforcredit - 0 profit orloss profit orloss profit orloss receivables losses onloansand Loans andreceivables Available-for-sale Fair valuethroughprofitorloss 6 Other classifications Available-for-sale - 0 5 _ v 1 . i n d d

C 4 4 ,9 3 9$8 8 1,676 $ 183 $ 83 $ 79 $ 237 $ 1,094 $ Bonds ,9 5 4(2 2,410 (62) 24 152 — 2,296 ,5 5 6)2,344 (62) 1,673 — 156 152 63 — 80 2,254 239 1,135 19———20 31 — — — — — 42—— 1 9 ——42 — 11 30 ———24—24 —(7)———(7) 2)(7 (47) (27) (20) — — — Mortgage 46 loans Stocks  Investment properties $311 March 31 2016 32 10 te Total Other 396 355 $ $ December 31 2015 30 11 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 45 C Other Total properties Investment  Stocks loans 47 Mortgage FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER —1———1 ———55—55 5———45 45—— 1,095 2522,577 63 — 63 162 63 — 1,536 114 2,853 2,622 — 162 55 114 2,953 Bonds POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 4 C

d d n i . 1 v Available-for-saleOther classifications 73 5 — 8 1 — — — — — 74 13 _ losses on loans and receivables profit or loss profit or loss profit or loss 5 Net allowances for credit Classified fair value through Designated fair value through Recorded at fair value through 0 Other income and expenses — — — (25) (27) (52) Investment income earnedNet realized gains $ 1,017 $ 243 $ 62 $ 88 $ 90 $ 1,500 - 6 0 through profit or loss assets - Changes in fair value on fair value Total $ 3,717 $ 252 $ 225 $ 118 $ 177 $ 4,489 ended March 31, 2015 income Regular net investment For the three months For the three 6 Investment income earned comprises income from investments that are classified as available-for-sale, loans income from investments that are classified as available-for-sale, loans Investment income earned comprises or designated as fair value through profit or loss. Investment and receivables and investments classified interest income and premium and discount amortization. Income income from bonds and mortgages includes Allianz income from the investment in IGM Financial Inc. (IGM) and from stocks includes dividends and equity includes rental income earned on investment properties, ground rent Ireland. Investment properties income land, fee recoveries, lease cancellation income, and interest and income earned on leased and sub-leased investment properties. Other income includes policyholder loan income, other investment income earned on income earned from derivative financial instruments and other foreign exchange gains and losses, miscellaneous income. 1 0 2 _ L The Company has policies relating to the identification, measurement, monitoring, mitigating and controlling of The Company has policies relating to the identification, measurement, The key risks related to financial instruments are credit risk, liquidity risks associated with financial instruments. The Risk Committee of the Board of Directors is responsible interest rate and equity). risk and market risk (currency, The Company's approach to risk management has not substantially for the oversight of the Company's key risks. For Annual Report. Certain risks have been outlined below. changed from that described in the Company's 2015 approach, see the "Financial a discussion of the Company's risk governance structure and risk management 2015 consolidated audited financial Instruments Risk Management" note in the Company's December 31, statements. measure and report all material identify, The Company has also established policies and procedures designed to for implementing and monitoring risks. Management is responsible for establishing capital management procedures all capital transactions undertaken by management. The Board of Directors reviews and approves the capital plan. W G _ 3 4. Portfolio Investments (cont'd) 4. Portfolio 0 5. Financial Instruments Risk Management g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C45 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C46 C C

_ PART C Q

U GREAT-WEST LIFECO INC. A T 1 _ 5. FinancialInstrumentsRiskManagement(cont'd) E n g 0 (a) Credit Risk 3 (c) Market Risk (b) Liquidity Risk _ C G W Credit riskistheoffinanciallossresultingfromfailuredebtorstomakepaymentswhendue. 46 L _ be asindicated. the Companycannotprovideassurancethatactualimpactonnetearningsattributedtoshareholderswill for therespectivefactorsbasedonassumptionsoutlinedabove.Givennatureofthesecalculations, For thesereasons,thesensitivitiesshouldonlybeviewedasdirectionalestimatesofunderlying ThegenerallimitationsoftheCompany's internalmodels. • Interactionsamongthesefactorsand assumptionswhenmorethanonechanges,and • Changesinbusinessmix,effective incometaxratesandothermarketfactors, • Actualexperiencediffering fromtheassumptions, • Changesinactuarial,investmentreturnandfutureactivityassumptions, • Assessmentofthecircumstancesthatledtoscenariomayleadchangesin(re)investmentapproaches • valuation date. Actual resultscandiffer significantlyfromtheseestimatesforavarietyofreasonsincluding: such asthesensitivityduetospecificchangesininterestratelevelsprojectedandmarketpricesat These financialstatementsincludeestimatesofsensitivitiesandriskexposuremeasuresforcertainrisks, Caution RelatedtoRiskSensitivities risk andequityrisk. of changesinmarketfactorswhichincludethreetypes:currencyrisk,interestrate(includingrelatedinflation) Market riskisthethatfairvalueorfuturecashflowsofafinancialinstrumentwillfluctuateasresult Managementcloselymonitorsthesolvencyandcapitalpositionsofitsprincipalsubsidiariesoppositeliquidity • TheCompanycloselymanagesoperatingliquiditythroughcashflowmatchingofassetsandliabilities • due. The followingpoliciesandproceduresareinplacetomanagethisrisk: Liquidity riskisthethatCompanywillnotbeabletomeetallcashoutflowobligationsastheycome similar industries.NosignificantchangeshaveoccurredfromtheyearendedDecember31,2015. debtors thathavesimilarcreditriskcharacteristicsintheyoperatethesamegeographicregionor Concentrations ofcreditriskarisefromexposurestoasingledebtor, agroupofrelateddebtorsorgroups Concentration ofCreditRisk 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 and interestratescenariosconsidered, banks. The CompanymaintainscommittedlinesofcreditwithCanadianchartered via capitalmarkettransactions. requirements attheholdingcompany. Additional liquidityisavailablethroughestablishedlinesofcreditor yield ofassets. forecasting earnedandrequiredyields,toensureconsistencybetweenpolicyholderrequirementsthe - 0 6 - 0 5 _ v 1 . i n d d

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 47 C  49 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 4 C

d d n i . 1 non-participating insurance and investment contract liabilities and their supporting assets by non-participating insurance and investment strengthening 10% A in an immaterial change to net earnings. approximately the same amount resulting currencies would be expected to decrease non-participating of the Canadian dollar against foreign and their supporting assets by approximately the same insurance and investment contract liabilities in net earnings. amount resulting in an immaterial change 31, 2015. not change the total provision for interest rates at March 31, 2016 and December 31, 2015. not change the total provision for interest rates at March 31, 2016 and December v _ 5 0 Currency risk relates to the Company operating and holding financial instruments in different currencies. financial instruments in different to the Company operating and holding Currency risk relates by currency, liabilities that are not matched insurance and investment contract For the assets backing losses not to the risk of foreign exchange exchange rates can expose the Company changes in foreign foreign operations. In addition, the Company has net investments in The liability decreases. by offset accordance with IFRS, foreign denominated in Canadian dollars. In debt obligations are mainly Company’s hedging in foreign operations, net of related gains and losses from net investments currency translation Strengthening or other comprehensive income. are recorded in accumulated activities and tax effects, pound and euro spot rates British the U.S. dollar, dollar spot rate compared to weakening of the Canadian book value per share and capital the Company’s Correspondingly, total equity. impacts the Company’s are also impacted. ratios monitored by rating agencies • currencies would be expected to increase 10% weakening of the Canadian dollar against foreign A cash flows are not closely matched and interest rates change Interest rate risk exists if asset and liability in value between the asset and liability. causing a difference Asset Liability Method assets and liabilities are used in the Canadian Projected cash flows from the current made regarding rates of assumptions have been Valuation to determine insurance contract liabilities. The valuation assumptions use best income, equity and inflation. returns on supporting assets, fixed and inflation assumptions with an assumed correlation together estimates of future reinvestment rates These margins are set in accordance with professional standards. with margins for adverse deviation of misestimation and/or future deterioration in the best estimate necessary to provide for possibilities assurance that insurance contract liabilities cover a range of possible assumptions and provide reasonable for continued appropriateness. outcomes. Margins are reviewed periodically (including increasing, decreasing and fluctuating rates) under a number of interest rate scenarios Testing to cover a broader The total provision for interest rates is sufficient is done to assess reinvestment risk. Actuaries Canadian Institute of or more severe set of risks than the minimum arising from the current prescribed scenarios. of long-term historical results The range of interest rates covered by these provisions is set in consideration immediate 1% parallel shift in the An and is monitored quarterly with a full review annually. view of the range of interest rates to be covered by would not have a material impact on the Company’s range of scenarios impact the Company’s the parallel shift could the provisions. If sustained however, covered. Actuaries Canadian Institute of The total provision for interest rates also considers the impact of the prescribed scenarios: • yield curve on the prescribed scenarios would of an immediate 1% parallel increase in the The effect • would of an immediate 1% parallel decrease in the yield curve on the prescribed scenarios The effect - 6 0 - 6 1 (i) Currency Risk Risk (i) Currency (ii) Interest Rate Risk 0 2 _ L W G _ 3 5. Financial Instruments Risk Management (cont'd) Instruments Risk Management 5. Financial 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C47 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C48 C C

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U GREAT-WEST LIFECO INC. A T 1 _ 5. FinancialInstrumentsRiskManagement(cont'd) E n g 0 3 _ C G W (iii) Equity Risk 48 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 or 10%decreaseinequityvalues: as equityvaluesfluctuate. The followingprovidesinformationontheexpectedimpactsofa10%increase these liabilitieswillfluctuateinlinewithequityvalues. There willbeadditionalimpactsontheseliabilities and privateequities,forexamplesegregatedfundproductswithlong-tailcashflows.Generally Some insuranceandinvestmentcontractliabilitiesaresupportedbyproperties,commonstocks insurance contractliabilitiesataconditionaltailexpectationof75(CTE75)level. rate derivatives.Forpolicieswithsegregatedfundguarantees,theCompanygenerallydetermines Guaranteed MinimumWithdrawalBenefitguaranteesusingequityfutures,currencyforwards,andinterest associated withsegregatedfundguaranteeshavebeenmitigatedthroughahedgingprogramforlifetime in placethatprovideforprudentinvestmentequitymarketswithinclearlydefinedlimits. The risks equity marketsandotherpricingrisk. To mitigatepricingrisk,theCompanyhasinvestmentpolicyguidelines Equity riskistheuncertaintyassociatedwithvaluationofassetsandliabilitiesarisingfromchangesin 1% decreaseinthebestestimateassumptions: and liabilitycashflows. The followingprovidesinformationontheexpectedimpactsofa1%increaseor Changes inthecurrentmarketcouldresultchangestotheseassumptionsandwillimpactbothasset The bestestimatereturnassumptionsforequitiesareprimarilybasedonlong-termhistoricalaverages. rates atboththelowandhighendofrangeinterestrecognizedinprovisions: The followingprovidesinformationontheeffect ofanimmediate1%increaseordecreaseintheinterest of a1%changeintheCompany'sviewrangeinterestratestobecoveredbytheseprovisions. on theinsuranceandinvestmentcontractliabilitiesimpactingshareholdersnetearningsofCompany Another wayofmeasuringtheinterestrateriskassociatedwiththisassumptionistodetermineeffect Change ininterestrates Change inbestestimatereturn Change inequityvalues - 0 assumptions Increase (decrease)innet Increase (decrease)ininsurance Increase (decrease)innet Increase (decrease)in Increase (decrease)innet Increase (decrease)in 6 - 0 5 earnings and investmentcontractliabilities earnings contract liabilities non-participating insurance earnings investment contractliabilities non-participating insuranceand _ v 1 . i n d d

C 4 8 18 696 $ (168) $120$$ 53 573 $ (533) $432$$ 137 $ (55) $47$$ 0 nrae10%decrease 10% increase %ices 1%decrease 1% increase %ices 1%decrease 1% increase 50 March 31,2016 March 31,2016 March 31,2016  (498 (457 (105 ) ) ) 0 (430) $ 109 $ 13 614 $ (163) $ 3 (457) $ 433 $ (108) $ 45 $ 54 573 $ (534) $ 139 $ (53) $ 0 nrae10%decrease 10% increase %ices 1%decrease 1% increase %ices 1%decrease 1% increase December 31,2015 December 31,2015 December 31,2015 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 49 C  51 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 4 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ L W The Company’s assets and liabilities recorded at fair value have been categorized based upon the following fair at fair value have been categorized assets and liabilities recorded The Company’s value hierarchy: markets for identical quoted prices (unadjusted) in active measurements utilize observable, Level 1: Fair value utilizing Level 1 inputs include Assets and liabilities that the Company has the ability to access. assets or liabilities funds which have futures, and mutual and segregated equity securities, exchange-traded actively exchange-traded restrictions. an active market with no redemption available prices in 1 that are observable than quoted prices included in Level measurements utilize inputs other Level 2: Fair value quoted prices for similar assets and Level 2 inputs include indirectly. either directly or for the asset or liability, such other than quoted prices that are observable for the asset or liability, liabilities in active markets, and inputs The fair values for some are observable at commonly quoted intervals. as interest rates and yield curves that The pricing service inputs include, but are not limited to, a pricing service. Level 2 securities were obtained from quotes, issuer spreads, two-sided markets, benchmark securities, benchmark yields, reported trades, broker/dealer those priced using a matrix which is based on and reference data. Level 2 assets and liabilities include offers and agency securities, restricted stock, some private bonds and equities, credit quality and average life, government corporate bonds, most asset-backed securities, most over-the-counter most investment-grade and high-yield the contracts that are measured at fair value are mostly included in derivatives, and mortgage loans. Investment Level 2 category. one or more significant inputs that are not based on observable market Level 3: Fair value measurements utilize of the The values asset or liability. market activity for the there is little, if any, inputs and include situations where obtained from single broker quotes, internal pricing models, or external majority of Level 3 securities were certain bonds, certain asset-backed Assets and liabilities utilizing Level 3 inputs generally include appraisers. in mutual and segregated funds where there are redemption securities, some private equities, investments derivatives, and investment properties. restrictions, certain over-the-counter G _ 3 0 g 6. Measurement Fair Value n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C49 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C50 C C

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U GREAT-WEST LIFECO INC. A T 1 _ 6. FairValue Measurement(cont'd) E n g 0 level: The followingpresentstheCompany’s assetsandliabilitiesmeasured atfairvalueonarecurringbasisbyhierarchy Derivatives Investment properties Total available-for-salefinancialassets Available-for-sale financialassets Total financialassetsatfairvaluethroughprofitorloss sesmaue tfi au ee ee ee Total 3 Level 2 Level Level1 Financial assetsatfairvaluethroughprofitorloss Cash andcashequivalents Assets measuredatfairvalue Other assets: 3 oa sesmaue tfi au 013$9,5 ,0 113,710 $ 5,108 $ 98,459 $ 10,143 $ Derivatives Liabilities measuredatfairvalue Total assetsmeasuredatfairvalue oa iblte esrda arvle$13$415$2 4,271 $ 23 $ 4,105 $ 143 $ Total liabilitiesmeasuredatfairvalue Other liabilities Investment contractliabilities There werenotransfersoftheCompany'sassetsandliabilitiesbetweenLevel12inperiod. (3) (2) (1) _ C G Excludescollateralpledgedof$361. Includescashcollateralundersecuritieslendingagreements. Excludescollateralreceivedof$73. W 50 L Stocks Bonds Stocks Bonds Other Trading accountassets _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 (2) 5 _ (3) (1) v 1 . i n d d

C 5 0 52 ,2 2,923 $ — $ — $ 2,923 $ ,1 2,015 $ — $ 2,012 $ 3 $ ,3 6225 92,984 56 86,292 6,636 ,3 56,696 55 5 6,636 9 9 586 2 192 392 4 140 — — 140 4 140 — — 140 9—150 11,426 1 1 — 11,376 49 49 ,4 5,049 5,049 — — 136—11,376 — 11,376 — 627186,288 1 86,287 — ,9 32,116 23 2,093 — 3599 —602  March 31,2016 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 51 C December 31, 2015 December  4 457 — 461 $ 3$2,621$—$2,624 53 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 5 C

d d (2) (1) n i . 1 v _ 5 0 - 6 0 - 6 1 Trading account assets 381 204 5 590 BondsStocksBondsStocks 6,573 — 86,493 8 — 56 10 11,534 66 86,503 — 6,647 1 11,535 1 57 0 2 Excludes collateral pledged of $608. Excludes collateral pledged of $608. Excludes collateral received of $107. Excludes collateral received of $107. _ L (2) (1) There were no transfers of the Company's assets and liabilities between Level 1 and Level 2 in the period.There were no transfers of the Company's Investment contract liabilitiesTotal liabilities measured at fair value $ 3 $ — 4,847 $ 2,226 27 $ 4,877 27 2,253 Other assets: Total assets measured at fair valueLiabilities measured at fair value Derivatives $ 9,827 $ 98,696 $ 5,320 $ 113,843 W Assets measured at fair valueAssets measured Cash and cash equivalents fair value through profit or loss Financial assets at at fair value through profit or lossTotal financial assets financial assets Available-for-sale 6,573Total available-for-sale financial assets Level 1 86,501Investment properties $ Level 2Derivatives 2,813 $ 3 Level 76 Total 93,150 — $ 56 — $ 11,534 2,813 2 — 11,592 — 5,237 5,237 G _ 3 6. Fair Value Measurement (cont'd) Measurement 6. Fair Value 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C51 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C52 C C

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U GREAT-WEST LIFECO INC. A T 1 _ 6. FairValue Measurement(cont'd) E n g 0 Total gains(losses) Balance, beginningof basis andforwhichtheCompanyhasutilizedLevel3inputstodeterminefairvalue: The followingpresentsadditionalinformationaboutassetsandliabilitiesmeasuredatfairvalueonarecurring 3 Mrh3,21 $ — $ — $ March31,2016 innetearningsfor theperiodincluded Change inunrealized Total gains(losses)for aac,edo eid$1$—$ — $ 1 $ Balance, endofperiod Transfers intoLevel3 Other Sales Purchases Level3 Transfers outof (4) (3) (2) (1) _ er$1 $ 1 $ 10 $ year C G Included inother Included innet noe$—$—$ — $ — $ assets heldat gains (losses)for income in netinvestment the periodincluded Includesilliquidequitieswhereprices arenotquoted;however, theCompanydoesnotbelievechanging Includesinvestmentsinmutualandsegregatedfundswherethereareredemptionrestrictions. The fairvalue Transfers intoLevel3aredueprimarilyto decreased observabilityofinputsinvaluationmethodologies. Othercomprehensiveincome forinvestmentpropertiesrepresentstheunrealizedlossesonforeignexchange. income comprehensive earnings W 52 L _ inputs toreasonablyalternateassumptionswouldchangethevaluessignificantly. is basedonobservable,quotedprices. on investmentsinmutualandsegregatedfunds. evidenced bycorroborationofmarketpriceswithmultiplepricingvendorsortheliftingredemptionrestrictions Transfers outofLevel3aredueprimarilytoincreased observabilityofinputsinvaluationmethodologiesas 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - (2) 0 6 - (1) 0 5 _ v 1 . i n d d

C (2) 5 2 loss bonds Fair value profit or through —— 1)——(4) — — (10) — ———————(4)— 2—74—— 177— ———————— (8)(1)————(9)—(1)——— Available- for-sale bonds Fair value stocks profit or through loss 66 (3) (3 54 55 (3 (3 —24)— 21 — — $—$2 1$— 21 $ $ — — 24 $ 21 $ $ — $ — )$ 24 $ $ — )$ $1$ $1$ Available- for-sale stocks March 31,2016 Investment properties  5,237 5,049 (286 )— $5$ $2$ account assets- trading Other (4) Level 3 assets Total 5,320 5,108 (287 (14 )— )— $27 Investment liabilities $23 contract 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 — — 116-05-11 3:12 PM — 53 contract liabilities C $— $— $27 Investment $28 )— )— )— (38 (47 261 255 379 333 (286 261 5,320 4,718 Total assets Level 3 5 — — (4) Other trading assets - account $5$ $—$ $—$ $—$ )— 243 249 379 278 (282 249 5,237 4,613  properties Investment — December 31, 2015 December 31, stocks for-sale Available- $1$ $1$ )——— )— (4 (4 66 50 55 17 (3) FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER loss through profit or stocks Fair value ————— bonds for-sale Available- ———— ———————— 5— 7— (34) — POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER through profit or Fair value loss bonds $5$—$7$—$ $86$1$ (2) 3 5 C

d d n i . 1 (1) v _ 5 (2) 0 - 6 0 - 6 Transfers out of Level 3 are due primarily to increased observability of inputs in valuation methodologies as 3 are due primarily to increased observability of inputs in valuation out of Level Transfers prices with multiple pricing vendors or the lifting of redemption restrictions evidenced by corroboration of market on investments in mutual and segregated funds. is based on observable, quoted prices. inputs to reasonably alternate assumptions would change the values significantly. 1 0 2 earnings comprehensive income exchange. income for investment properties represents the unrealized gains on foreign Other comprehensive methodologies. Level 3 are due primarily to decreased observability of inputs in valuation into Transfers The fair value in mutual and segregated funds where there are redemption restrictions. Includes investments the Company does not believe changing the Includes illiquid equities where prices are not quoted; however, included in earnings for assets held at December 31, 2015 $ 5 $ — $ 7 $ — $ _ Included in net Included in other L year (2) (3) (4) (1) Balance, end of year $ 10 $ 1 $ Change in unrealized gains for the year Total gains for the gains for Total year included in net investment income Purchases out of Transfers Level 3 — — Sales — — te ———————(1) RepaymentsOther into Level 3 Transfers (47) W Balance, beginning of Total gains G _ 3 6. Fair Value Measurement (cont'd) Measurement 6. Fair Value 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C53 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C54 C C

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U GREAT-WEST LIFECO INC. A T 1 _ . InsuranceandInvestmentContractLiabilities 7. 6. FairValue Measurement(cont'd) E n g 0 and liabilitiescategorizedasLevel3inthefairvaluehierarchy. The followingsetsoutinformationaboutsignificantunobservableinputsusedatperiod-endinmeasuringassets oa 5,6 ,4 152,324 $ 5,144 $ 157,468 $ Total Investment contractliabilities Insurance contractliabilities oa 6,4 ,3 155,614 $ 5,131 2,253 $ 160,745 $ — 153,361 $ 5,131 2,253 $ 158,492 $ Total Investment contractliabilities Insurance contractliabilities 3 _ C properties Investment Valuationapproach Type ofasset G W 54 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 asset basedoncurrentmarketrates. capitalization ratesapplicabletothe discount, reversionaryandoverall and operatingexpenditures) assumptions, rentalrates,capital cash flows(suchasfutureleasing the useofestimatessuchasfuture value ofinvestmentpropertyrequires flows. The determination ofthefair discount expectedfuturenetcash capitalization ratesandmodelsthat valuation modelsbasedonexpected generally determinedusingproperty Investment propertyvaluationsare . i n d d

C 5 4 aac aeWihe vrg f38 dces i te expected the in decrease A Weighted averageof3.8% reversionary the in decrease A Vacancy rate Rangeof4.3%-8.3% rate discount the in A decrease Reversionary rate Rangeof3.1%-10.0% Discount rate Inputvalue unobservable input Significant 56 5,5 ,4 150,208 $ 5,144 $ 155,352 $ liability liability Gross Gross  ,1 2,116 — 2,116 December 31,2015 March 31,2016 Reinsurance Reinsurance assets assets result inadecreasefairvalue. vacancy ratewouldgenerally An increaseintheexpected result inanincreasefairvalue. vacancy ratewouldgenerally a decreaseinfairvalue. reversionary ratewouldresultin in fairvalue. An increase inthe rate wouldresultinanincrease decrease infairvalue. discount ratewouldresultina value. An increase inthe would resultinanincreasefair fair valuemeasurement key unobservableinputsand Inter-relationship between Net Net 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM (7) (1) 25 382 231 211 1,390 2,596 5,016 1,593 7,810 2,331 (1,759) (4,742) 55 42,160 80,829 50,101 10,839 12,467 198,181 C 2015 2015 December 31 $ 174,966 $ 187,433 $ 11,656 $ 198,194 6 6 (1) 16 659 702 424 5,927 1,396 2,615 (1,374) (5,688) (5,446) (5,193) (2,350) 42,433 76,822 49,022 10,647 ended March 31 193,531 2016 For the three months 2016 March 31 $ 11,992  57 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 5 C

d d n i . 1 v _ 5 0 Net investment income Net realized capital gains on investments Net unrealized capital gains (losses) on investments Unrealized gains (losses) due to changes in foreign exchange rates Policyholder withdrawals Policyholder deposits Segregated Fund investment in General Fund General Fund investment in Segregated Fund Net transfer from General Fund Non-controlling mutual funds interest - 6 0 - Additions (deductions): 6 1 Bonds Accrued income Other liabilities Non-controlling mutual funds interest Total $ 193,001 Cash and cash equivalents Mortgage loans Mutual funds Investment properties Stocks and units in unit trusts Balance, beginning of year $ 198,194 Balance, end of period $ 193,001 Total 0 2 _ L W The following presents details of the investments, determined in accordance with the relevant statutory reporting in accordance with the relevant details of the investments, determined The following presents policyholders: on account of segregated fund region of the Company's operations, requirements of each (a) fund policyholders on account of segregated Investments (b) on account of segregated fund policyholders Investment and insurance contracts G _ 3 0 g 8. Segregated Funds 8. Segregated n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C55 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C56 C C

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U GREAT-WEST LIFECO INC. A T 1 _ 8. SegregatedFunds(cont'd) E n g Company's December31,2015Management'sDiscussionand Analysis. Analysis fortheperiodendedMarch 31, 2016andthe"RiskManagementControlPractices"sectionof the the "SegregatedFundandVariable Annuity Guarantees"sectionoftheCompany's Management'sDiscussionand For furtherdetailsontheCompany'sriskandguaranteeexposuremanagementoftheserisks,refer to 0 c Investmentsonaccountofsegregatedfundpolicyholdersbyfairvaluehierarchylevel(note6) (c) 3 _ C G W 3 duringtheperiodendedMarch31,2016. evidenced bycorroborationofmarketpriceswithmultiplepricingvendors. There werenotransfersintoLevel Transfers outofLevel3aredueprimarilytoincreased observabilityofinputsinvaluationmethodologiesas Transfers intoLevel3aredueprimarilytodecreased observabilityofinputsinvaluationmethodologies. aac,edo eid$11,541 $ 11,765 $ Balance, endofperiod Transfers outofLevel3 Sales Purchases Total gains(losses)includedinsegregatedfundinvestmentincome Balance, beginningofyear Investments onaccountofsegregated 56 L Investments onaccountofsegregated _ fund policyholdersforwhichtheCompanyhasutilizedLevel3inputstodeterminefairvalue: The followingpresentsadditionalinformationabouttheCompany'sinvestmentsonaccountofsegregated where theCompanydoesnothavevisibilitythroughtounderlyingassets. Level 2assetsincludethosewherefairvalueisnotavailablefromnormalmarketpricingsourcesand Company's abilitytoutilizeobservable,quotedpricesinactivemarkets. from Level2to1($412weretransferredatDecember31,2015)basedonthe During thefirstthreemonthsof2016certainforeignstockholdingsvaluedat$2,646havebeentransferred (1) (1) 2 fund policyholders fund policyholders 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 Excludes otherliabilities,netofassets,$1,842. Excludes otherliabilities,netofassets,$1,187. - 0 6 - 0 5 _ v 1 . i n d d

C 5 6 (1) (1) 2,8 733$1,6 199,381 $ 11,765 $ 67,333 $ 120,283 $ 2,1 295$1,4 194,843 $ 11,541 $ 62,985 $ 120,317 $ ee ee ee Total 3 Level 2 Level Level 1 ee ee ee Total Level 3 Level2 Level 1 58 December 31,2015  March 31,2016 March 31 2016 (169) (121) 66 — $11,765$10,390 December 31 2015 1,039 (607) 944 (1) 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 3 7 66 76 57 C 2015 Carrying $1 $77 3 7 2015 —21 66 76 ended March 31 (765,450) (26) 2016 1,670,744 57 Number Value For the three months 996,699,371 $ 7,102 997,604,665 $ 7,154 $2 $78  Carrying 2016 —17 For the three months ended March 31 For the three months ended March 473,574 15 (624,181) (21) Number Value 59 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 5 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ Issuer Bid capital per Normal Course Issuer Bid Interest on operating lines and short-term debt instruments Interest on operating other debt instruments Interest on long-term debentures and Interest on capital trust securities Other L Purchased and cancelled under Normal Course Common shares Balance, beginning of yearExcess of redemption proceeds over stated 993,350,331 $ 7,156 Exercised and issued under stock option plan Balance, end of period 993,199,724 $ 7,167 W Operating charges: Financial charges: Total Financing charges consist of the following: Financing charges On January 5, 2016, the Company announced a normal course issuer bid commencing January 8, 2016 and commencing January 5, 2016, the Company announced a normal course issuer bid On January terminating January 7, 2017 to purchase for cancellation up to but not more than 8,000,000 of its common shares to the current normal course at market prices. On February 22, 2016, the Company announced an amendment The common shares at market prices. issuer bid allowing the Company to purchase up to 20,000,000 of its 7, 2017. February 23, 2016 and will continue until January amended normal course issuer bid was effective Subsequent to the quarter ended March 31, 2016, Great-West Life & Annuity Insurance Capital, LP II, a subsidiary, II, a subsidiary, Annuity Insurance Capital, LP Life & 31, 2016, Great-West Subsequent to the quarter ended March junior subordinated debentures with a first par call date of May 16, 2016 elected to not call its U.S. $300 7.153% of 2046. Beginning May 16, 2016, the debentures will pay a floating rate and a final maturity date of May 16, Financial also entered into an interest rate swap transaction Great-West interest set at 3-month LIBOR plus 2.538%. of of interest and will receive a floating 3-month LIBOR plus 2.538% rate whereby it will pay a fixed 4.68% rate interest on the notional principal amount. Common Shares G _ 3 0 g 9. Financing Charges Charges 9. Financing n 10. Share Capital 10. Share E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C57 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C58 C C

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U GREAT-WEST LIFECO INC. A T 12. Capital Management 1 1 EarningsperCommonShare 11. _ 10. ShareCapital(cont'd) E n g (a) Policies and Objectives 0 March 31,2015). stock planwithacarryingvalueof$15(1,670,744$57duringthethreemonthsended During thethreemonthsendedMarch 31, 2016,473,574commonshareswereexercisedundertheCompany’s normal courseissuerbid). was recognizedasareductiontoequity($21duringthethreemonthsended value ofthesharesrepurchasedforcancellation. The excesspaidovertheaveragecarryingvaluewas$17and normal courseissuerbidatacostof$26). The Company’s sharecapitalwasreducedbytheaveragecarrying common sharesatacostof$21(765,450duringthethreemonthsendedMarch 31, 2015undertheprevious 31, 2016,the Companyrepurchasedandsubsequentlycancelled624,181 During thethreemonthsendedMarch iied e omnsae$0.3460 $ 0.623 0.625 $ $ 620 $ Dividends percommonshare 995,058,486 Diluted earningspercommonshare Basic earningspercommonshare Average numberofcommonsharesoutstanding-dilutedbasis Add: Potentialexerciseofoutstandingstockoptions Average numberofcommonsharesoutstanding Number ofcommonshares Net earnings-commonshareholders Preferred sharedividends Net earnings Earnings 3 _ C G W toprovideanefficient capitalstructuretomaximizeshareholdersvalueinthecontextofCompany’s • tomaintainstrongcreditandfinancialstrengthratingsoftheCompany ensuringstableaccesstocapital • tomaintainthecapitalizationofitsregulatedoperating subsidiariesatalevelthatwillexceedtherelevant • level. The primaryobjectivesoftheCompany’s capitalmanagementstrategyare: The Companymanagesitscapitalonbothaconsolidatedbasisaswellattheindividualoperatingsubsidiary regulators inthevariousjurisdictionswhereCompanyanditssubsidiariesoperate. Company’s shareholders,policyholdersandholdersofsubordinatedliabilitiesinadditiontotherelevant of theCompany’s stakeholders.Forthesepurposes,theBoardconsiderskeystakeholderstobe appropriate fortheCompanyandensuringcapitalisdeployedinamannerconsistentwithexpectations Managing capitalisthecontinualprocessofestablishingandmaintainingquantityquality 58 L _ 2 0 operational risksandstrategicplans. markets; and minimum regulatorycapitalrequirementsinthejurisdictionswhichtheyoperate; POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 5 8 60 

March 31,2015undertheprevious 651 $ 993,250,972 For thethreemonths 2016 1,807,514 ended March31 (31) 0.3260 0.700 $ 0.702 $ $ $700$732 999,131,469 996,852,230 2015 2,279,239 (32) 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 200% 238% 59 2,535 C 2015 December 31 $ 13,195 $$ 15,730 6,599 194% 236% 2016 March 31  61 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 5 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 Adjusted Net Tier 1 CapitalNet Tier 2 CapitalTotal Capital RequiredTier 1 Ratio $ 12,722 $ 6,559 2,770 Total Capital AvailableTotal Ratio $ 15,492 The capital planning process is the responsibility of the Company’s Chief Financial Officer. The capital plan Financial Officer. Chief Company’s process is the responsibility of the The capital planning Board of of Directors and approved by the Company’s Executive Committee of the Board is reviewed by the undertaken and approves all capital transactions The Board of Directors reviews basis. Directors on an annual by management. various its subsidiaries is assessed by considering capitalization for the Company and The target level of in the relevant regulatory capital requirements probability of falling below the minimum factors such as the strength and rating agencies that provide financial the views expressed by various credit operating jurisdiction, honour all policyholder and capital to be able to desire to hold sufficient and the Company, other ratings to the confidence. the Company with a high degree of other obligations of Canada has established a capital adequacy of the Superintendent of Financial Institutions In Canada, the Office Act (Canada) and incorporated under the Insurance Companies measurement for life insurance companies Continuing Capital and Surplus Requirements. For this purpose, their subsidiaries, known as the Minimum of the capital are mandated by the guidelines issued by the Office various additions or deductions from Continuing The following provides a summary of the Minimum Canada. Superintendent of Financial Institutions Life: and ratios for Great-West Capital and Surplus Requirements information 0 Other foreign operations and foreign subsidiaries of the Company are required to comply with local capital or subsidiaries of the Company are required to comply with local capital or Other foreign operations and foreign jurisdictions. solvency requirements in their respective 2 _ L W (b) Regulatory Capital (b) Regulatory G _ 3 12. Capital Management (cont'd) 12. Capital 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C59 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C60 C C

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U GREAT-WEST LIFECO INC. A T 1 3 PensionPlansandOther Post-EmploymentBenefits 13. _ E n g 0 Pension plansandotherpost-employmentbenefitsre-measurements- Other post-employmentbenefits-re-measurements Total pensionplansandotherpost-employmentbenefitsexpenseincluding comprehensive incomeareasfollows: The totalpensionplansandotherpost-employmentbenefitsexpenseincludedinoperatingexpenses Pension plans-re-measurements Pension plansandotherpost-employmentbenefitsexpense-Consolidated Other post-employmentbenefits Pension plans Weighted averagediscountrate 3 to re-measurethedefinedbenefitobligationatfollowingdates: The followingsetsouttheweightedaveragepensionplansandotherpost-employmentbenefitsdiscountrateused (1) _ C G comprehensive loss emaueet 291 $ re-measurements Statements ofEarnings ThisincludestheCompany'sshareofpensionplanre-measurementsforaninvestmentinassociate Actuarial loss Pension plansre-measurementloss W Actuarial (gain)loss-investmentinassociate Change intheassetceiling Administrative expenseslessthanassumed Return onassetsgreaterthanassumed Actuarial loss Net interestcost Service costs Net interestcost Curtailment Service costs 60 L _ accounted forundertheequitymethod. 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n d d

C 6 0 (1) 62 2016 3.5% March 31  0521 2014 2015 2015 .%38 3.5% 3.8% 3.1% $52 For thethreemonths 2016 ended March31 December 31 231 242 273 (26) (13) 11 45 49 (9) (1) (6) 4 3 1 6 $284 $50 2015 (420) 206 223 537 17 56 85 61 — — 4 5 4 1 6 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 75 61 C 2015 $ 224 $ 149 (30) ended March 31 2016 For the three months $54  63 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 6 C

d d n i . 1 v _ 5 0 - 6 0 - 6 1 Total income tax expense $ 24 Deferred income taxes Current income taxes Income tax expense (recovery) consists of the following: Income tax expense 0 The overall effective income tax rate for Lifeco for the three months ended March income tax rate for Lifeco for the three months The overall effective was 3.5% compared 31, 2016 income The effective for the three months ended March to 13.3% for the full year 2015 and 22.6% 2015. 31, Company's statutory income tax rate of 26.75% due to benefits related tax rates are generally lower than the lower income tax in certain foreign jurisdictions. to non-taxable investment income and 31, 2016 is lower than the rate for the three income tax rate for the three months ended March The effective income tax rate primarily due to a higher the full year 2015 effective months ended March 31, 2015 and consisting of non-taxable investment income and income subject to percentage of the Company's income foreign jurisdictions, as well as the impact of elections and settlements lower rates of income tax in certain with tax authorities. and unused losses and income tax asset is recognized for deductible temporary differences deferred A realization of the related income tax benefit through future taxable profits carryforwards only to the extent that is probable. it is probable that the entity will have taxable profits and/or tax planning Recognition is based on the fact that the deferred income tax asset to be utilized. Changes in circumstances opportunities will be available to allow The uncertainty of the the assessment of the recoverability. in future periods may adversely impact The Company's annual tax assets. recoverability is taken into account in establishing the deferred income of deferred income tax assets. financial planning process provides a significant basis for the measurement on future taxable profits where the The deferred income tax asset includes balances which are dependent The aggregate deferred year. relevant entities have incurred losses in either the current year or the preceding 31, 2016 ($1,434 at at March income tax asset for the most significant entities where this applies is $1,373 December 31, 2015). 2 _ L W (a) Income Tax Expense Tax (a) Income (b) Rate Effective Income Tax Assets Tax (c) Deferred G _ 3 0 g 14. Income Taxes Taxes 14. Income n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C61 PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C62 C C

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U GREAT-WEST LIFECO INC. A T 1 ConsolidatedNetEarnings 15. SegmentedInformation _ E n g 0 3 e anns(os 7 533()651 (4) 313 620 620 $ (6) 65 (4) $ 680 287 277 308 $ (4) 63 65 $ 276 325 251 $ Net earnings(loss)-commonshareholders 26 Impact ofcapitalallocation Net earnings(loss)beforecapitalallocation Preferred sharedividends 333 Net earnings(loss) Non-controlling interests Net earnings(loss)beforenon-controlling Income taxes(recovery) Earnings (loss)beforeincometaxes (1) _ Restructuring andacquisitionexpenses Financing charges neet 8 632()656 (4) 312 66 282 interests Amortization offinitelifeintangibleassets Benefits andexpenses Income For thethreemonthsendedMarch31,2016 C G Other Paid orcreditedtopolicyholders Fee andotherincome Total netinvestmentincome Net investmentincome Total netpremiums W Includes commissions,operatingandadministrativeexpensespremiumtaxes. Changes infairvaluethroughprofitorloss Regular netinvestmentincome 62 L _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 (1) - 0 6 - 0 5 _ v 1 . i n d d

C 6 2 ,6 ,8 ,7 7,015 $ — $ 2,774 $ 1,380 $ 2,861 $ Canada 64 ,9 ,8 ,7 12,352 — 4,970 2,886 4,496 ,0 ,1 ,6 9,678 — 4,083 4,265 — 2,112 1,875 3,301 935 1,273 1 8 5 1,866 4 359 686 817 6 7 2 1,254 — 2,410 1,673 — — 321 1,392 483 571 481 454 362 537 736 5()(1 2 — 31 (2) — (21) 24 5 46 (2) 78 — — — 25 — 13 26 8 (40) 12 22 51 37 16 29 —31—4 5 United States  1(1)— 5 Europe Corporate Lifeco Total 116-05-11 3:12PM 6 - 0 5 - 1 1

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GREAT-WEST LIFECO INC. 1 1 - 5 0 - 6 116-05-11 3:12 PM 63 Total C Lifeco Corporate Europe  States United 763 586 324 4 1,677 5,030 1,929 5,721 (1) 12,679 65 Canada FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 6 C

d d n i . 1 v _ 5 (1) 0 - 6 0 - 6 1 Regular net investment incomeRegular net investment through profit or lossChanges in fair value 1,376 232 629 1,345 395 — 513 2,953 (1) 1,536 0 2 Includes commissions, operating and administrative expenses and premium taxes. Includes commissions, operating and administrative Total net premiumsNet investment income incomeTotal net investment Fee and other income $ 2,667 $ 2,005 729 $ 627 3,536 358 $ 1,858 — 573 $ 6,932 (1) 327 4,489 — 1,258 Paid or credited to policyholdersOther 3,765 1,121 5,003 — 9,889 _ L For the three months ended March 31, 2015 months ended For the three Income Benefits and expenses Amortization of finite life intangible assets interests 14 17 5 — 36 336 124 313 (4) 769 Financing chargesRestructuring and acquisition expenses — 1 29 6 36 — 12 7 — 77 The Company corrected the classification of $73 of deferred tax liabilities to investment contract liabilities to conform The Company corrected the classification of $73 of deferred tax liabilities to The reclassifications had no impact on the net earnings of the Company. to the current period presentation. (1) Earnings (loss) before income taxesIncome taxes (recovery)Net earnings (loss) before non-controlling Non-controlling interestsNet earnings (loss)Preferred share dividends 459Net earnings (loss) before capital allocationImpact of capital allocation 168Net earnings (loss) - common shareholders $ 277 123 371 299 $ 122 33 44 121 (5) $ 26 303 305 58 286 22 2 993 $ — 122 (4) (6) $ (1) (1) 2 311 700 700 6 224 (19) — (4) — (2) 37 732 32 — W G _ 3 15. Segmented Information (cont'd) 15. Segmented 16. Comparative Figures 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng03_GWL_2016-06-05_v1.indd C63 Page intentionally left blank.

C 64 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

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IGM FINANCIAL INC. 1 1 - 5 0 - 6 116-05-11 3:11 PM 1 D erent erent and ows as at to the x refers ect the current ect the current x “D” refers to the number of such “D” refers x the content of forward- er materially from and cash fl nancial position FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER fi nancial performance, PART D IGM Financial Inc. IGM Financial looking statements, the material factors and assumptions that were applied looking statements, the material factors and assumptions that were looking statements based on certain assumptions and refl will not prove to be accurate, that assumptions may not be correct and that not be correct to be accurate, that assumptions may will not prove PAGE D 46 PAGE PAGE D 2 PAGE that could cause actual results to diff that could cause actual results on forward-looking statements. to put undue reliance in making the forward-looking statements, and the subsidiary’s in making the forward-looking policy for uncertainties that may be general or specific and which give rise to the uncertainties rise to the be general or specific and which give that may statements, please see the attached updating the content of forward-looking for the periods ended on certain the periods for about the information dates and to present possibility that expectations, forecasts, predictions, projections or conclusions or conclusions projections predictions, possibility that expectations, forecasts, not and is cautioned to consider these factors and assumptions carefully reader page numbers. A page number with the prefi page numbers. prefi without any page in this document and the page number issued by IGM Financial Inc. number of such page in the original document Certain statements in the such subsidiary. and publicly disclosed by prepared attached documents, other than statements of historical fact, are forward- of historical fact, are attached documents, other than statements in understanding the of assisting the reader the purposes for provided are for not be appropriate is cautioned that such statements may and the reader documents, including the section entitled Forward-Looking Statements. The Statements. documents, including the section entitled Forward-Looking expectations of the subsidiary statements as set forth Forward-looking therein. objectives, strategic goals and priorities will not be achieved. strategic goals and priorities will not be achieved. objectives, other purposes. For further by the subsidiary provided as to the material factors information By its nature, forward-looking information is subject to inherent risks and risks and is subject to inherent information forward-looking By its nature, Please note that the bottom of each page in PartPlease note that the bottom of each page D contains two diff POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Financial Statements and Notes Statements Financial Management’s Discussion and Analysis Discussion Management’s subsidiary’s fi subsidiary’s to the future and plans relating expectations management’s current The attached documents concerning IGM Financial Inc. are documents documents IGM Financial Inc. are The attached documents concerning 1 D

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U IGM FINANCIAL INC. A T 1 _ and amortization” (AdjustedEBITDA)arealsonon-IFRS measures.EBIT, financial and amortization” (EBITDA)and“adjustedearningsbeforeinterest,taxes,depreciation “Earnings beforeinterestandtaxes”(EBIT),“ similar measuresusedbyothercompanies. have standardmeaningsprescribedbyIFRSandmaynotbedirectlycomparableto measures toassessearningsperformance.Thesenon-IFRS measuresdonot financial measureswhichareused to providemanagementandinvestorswithadditional financial share” (EPS)and“operating returnonaveragecommonequity”(ROE) arenon-IFRS “Operating earningsavailabletocommonshareholders”,“operating dilutedearningsper • Operatingearningsavailabletocommonshareholders;and • accordance withIFRS,maybesubdividedintotwocomponentsconsistingof: Net earningsavailabletocommonshareholders,whichisanadditionalmeasurein subsidiaries’ control,affecttheoperations,performanceandresultsofCompany, and A varietyofmaterialfactors,manywhicharebeyondtheCompany’s andits may notbecorrectandthatobjectives,strategicgoalsprioritieswillachieved. predictions, projectionsorconclusionswillnot andwhichgiverisetothepossibilitythatexpectations,forecasts, be generalorspecific By itsnature,thisinformationissubjecttoinherentrisksanduncertaintiesthatmay based oninformationcurrentlyavailabletomanagement,theymayprovebeincorrect. in thecircumstances.WhileCompany considerstheseassumptionstobereasonable expected futuredevelopments,aswellotherfactorsthatarebelievedtobeappropriate looking statements,includingtheperceptionofhistoricaltrends,currentconditionsand in drawingaconclusionormakingforecast This informationisbaseduponcertainmaterialfactorsorassumptionsthatwereapplied conditional verbssuchas“may”,“will”,“should”, “would”and“could”. “forecasts” ornegativeversionsthereofandothersimilarexpressions,future “anticipates”, “plans”,“believes”,“estimates”, “seeks”, “intends”,“targets”,“projects”, depend uponorrefertofutureeventsconditions,includewordssuchas“expects”, periods. Forward-lookingstatementsincludethatarepredictiveinnature, yearandsubsequent North Americanandinternationaleconomies,forthecurrentfiscal ongoing objectives,strategiesandoutlookoftheCompany, aswelltheoutlookfor results,performance,prospects,opportunities,priorities,targets,goals, expected financial condition, without limitation,statementsregardingtheoperations,business,financial statements maynotbeappropriateforotherpurposes.Theseinclude, current expectationsandplansrelatingtothefuture.Readers arecautionedthatsuch the periodsendedoncertaindatesandtopresentinformationaboutmanagement’s understanding theCompany’s positionandresultsofoperationsasatfor financial current expectations.Forward-lookingstatementsarepr forward-looking statementsbasedoncertainassumptionsandreflectIGMFinancial’s Certain statementsinthisMD&A,otherthanofhistorical fact,are MD&A, havebeenpreparedinaccordancewithInternational are thebasisofinformationpresentedinCompany’s The InterimFinancialStatementsofIGMFinancial,which should bereadinconjunctionwiththeunauditedInterim 2016and as atandforthethreemonthsendedMarch 31, condition ofIGMFinancialInc.(IGMortheCompany) management’s viewoftheresultsoperationsandfinancial The Management’sDiscussionandAnalysis(MD&A)presents IGM FINANCIALINC. FIRST NON-IFRS FINANCIALMEASURES FORWARD-LOOKING STATEMENTS BASIS OFPRESENTATION AND MANAGEMENT’S DISCUSSIONANDANALYSIS E n g comparison of results from operations less meaningful. comparison ofresultsfromoperationslessmeaningful. considers tobeofanon-recurringnatureorthatcouldmake theperiod-over-period Other items,whichincludetheafter-taximpactofanyitemthatmanagement 0 4 _ D I G M 2 _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 2 AND ADDITIONALIFRSMEASURES earnings before interest, taxes, depreciation earnings beforeinterest,taxes,depreciation or projectionasreflectedintheforward- prove to be accurate, that assumptions prove tobeaccurate,thatassumptions ovided to assist the reader in ovided toassistthereaderin SUMMARY OFACCOUNTING POLICIES MANAGEMENT’S DISCUSSIONANDANALYSIS results inaccordancewithIFRSTables 1,2and3. Refer totheappropriatereconciliationsofnon-IFRS measurestoreported financial IFRS andarerelevanttoanunderstandingoftheentity’sfinancial performance. additional IFRSmeasuresastheyareinadditiontotheminimumlineitemsrequiredby additional measurestoassessearningsperformance.These additional IFRSmeasureswhichareusedtoprovidemanagementandinvestorswith “Earnings beforeincometaxes”and“netearnings directly comparabletosimilarmeasuresusedbyothercompanies. measuresdonothavestandard meaningsprescribedbyIFRSandmaynotbe financial less meaningful,arefurtherexcludedtoarriveatAdjustedEBITDA.Thesenon-IFRS nature, orthatcouldmake theperiod-over-period of capitalassetsandamortizationintangibleassets.Otheritemsanon-recurring beforetheimpactofdifferent profitability results. EBITDAisacommonmeasureusedintheassetmanagementindustrytoassess management, investorsandinvestmentanalyststoevaluateanalyzetheCompany’s EBITDA andAdjustedarealternativemeasuresofperformanceutilizedby securities regulatoryauthoritiesinCanada,availableatwww.sedar.com. withthe Discussion andAnalysisitsmostrecentAnnualInformationForm,filed statements isbasedprovidedinitsdisclosurematerials,includingthisManagement’s material factorsorassumptionsonwhichinformationcontainedinforward-looking Additional informationabouttherisksanduncertaintiesofCompany’s businessand or otherwise. unanticipated events,whetherasaresultofnewinformation,futureeventsorresults, after thedateonwhichsuchstatementsaremade,or no obligationtoupdateanyforward-lookingstatementsreflecteventsorcircumstances requiredbyapplicableCanadianlaw,theCompany Other thanasspecifically undertakes place unduerelianceonforward-lookingstatements. to considertheseandotherfactors,uncertaintiespotentialeventscarefullynot affect anyoftheCompany’s forward-lookingstatements.The readerisalsocautioned The readeriscautionedthattheforegoinglistnotexhaustiveoffactorsmay subsidiaries’ successinanticipatingandmanagingtheforegoingfactors. acquisitions andimplementothergrowthstrategies,theCompany’s andits catastrophic events,theCompany’s abilitytocompletestrategic transactions,integrate and legislation,changesintaxlaws,unexpectedjudicialorregulatoryproceedings, risks, businesscompetition,technologicalchange,changesingovernmentregulations estimates), theeffectofapplyingfutureaccountingchanges,operationalandreputational condition (includinguncertaintiesassociatedwithcriticalaccountingassumptionsand and fundingrisks,changesinaccountingpoliciesmethodsusedtoreportfinancial exchange rates,globalequityandcapitalmarkets, managementofmarket liquidity political andmarket factorsinNorthAmericaandinternationally,interestforeign include, butarenotlimitedto:theimpactorunanticipatedofgeneraleconomic, from currentexpectationsofestimatedoranticipatedeventsresults.Thesefactors its subsidiaries,andtheirbusinesses,couldcauseactualresultstodiffermaterially Financial Statements). inCanadiandollars(Note2oftheInterim and are presented Accounting Standard34, 2016. May 6, 2016isasof as atandforthethreemonthsendedMarch 31, onwww.sedar.com.Report filed Commentary intheMD&A Statements) aswellthe2015IGMFinancialInc.Annual Condensed Consolidated FinancialStatements(Interim Interim FinancialReporting financing methods, income taxes, depreciation methods,incometaxes,depreciation financing available to common shareholders” are available tocommonshareholders”are comparison of results from operations comparison ofresultsfromoperations to reflect the occurrence of to reflecttheoccurrenceof measures are considered measures areconsidered (IFRS) 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 1 1 - 5 0 - 6 (1) 116-05-11 3:11 PM 3 D EARNINGS EPS EARNINGS

(1) (1) MANAGEMENT’S DISCUSSION AND ANALYSIS EARNINGS EPS EARNINGS

(1) 2016 2015 2015 2016 2015 2015 MARCH 31 31 MARCH DECEMBER 31 31 MARCH QUARTER REPORT 2016 / / QUARTER REPORT 2016 management for the firstmanagement of 2016 were $130.4 billion quarter to $146.5 billioncompared in the first quarter of 2015. three shareholders for the available to common Net earnings months ended March 31, $167.0 million were 2016 or 69 cents net earnings available to common per share compared with shareholders of $200.3 millioncents per share for the or 80 2015. comparative period in $4.8 billionShareholders’ equity was as at March 31, 2016, unchanged from December 31, on average 2015. Return three months ended March 31,common equity for the 2016 with 17.1% for the comparative period was 14.3% compared dividend per common share declared in in 2015. The quarterly the first 2016 was 56.25 cents, unchanged from the quarter of fourth quarter of 2015. EARNINGS EPS FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. $ 167.0 $ 0.69 $ 173.9 $ 0.71 $ 200.3 $ 0.80 $ 167.0 $ 173.9 $ 200.3 $ 304.2 $ 346.4 $ 348.9 NON-IFRS FINANCIAL MEASURES POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 257.6 219.6 210.5 348.9 312.5 304.2 3 D

$ 167.0 $ 0.69 $ 198.2 $ 0.81 $ 200.3 $ 0.80 d d n i . 1 v _ 5 0 - 6 0 - 6

1 0 2 _ M G I _ IGM FINANCIAL INC. FINANCIAL IGM SUMMARY OF CONSOLIDATED OPERATING RESULTS OPERATING CONSOLIDATED OF SUMMARY TABLE 1: RECONCILIATION OF RECONCILIATION TABLE 1: THREE MONTHS ENDED (1) Diluted earnings per share ($ millions) – Operating earnings available to common shareholders Non-IFRS measure and other charges, net of tax Restructuring – IFRS Net earnings available to common shareholders Adjusted EBITDA – Non-IFRS measure – – (24.3) (0.10) – – Interest expense on long-term debt and other charges Restructuring long-term amortization EBITDA – Non-IFRS measure on Commission dividends expense share Interest of capital assets and intangible assets and other Amortization taxes preferred Income Earnings before income taxes Perpetual (11.0) Net earnings available to common shareholders – IFRS (22.9) (23.2) (2.2) (2.2) (2.2) (22.8) (11.1) (59.8) – (58.6) (58.7) (9.8) (33.9) (41.3) (43.5) (55.1) – IGM Financial Inc. (TSX:IGM) is one of Canada’s premier financial of Canada’s Inc. (TSX:IGM) is one IGM Financial are principal businesses The Company’s services companies. each Financial Corporation, Inc. and Mackenzie Investors Group of the the advice segment primarily within operating distinctly financial services market. management were $127.1 billionMutual fund assets under at March 31, 2016 compared with $131.5 billion at March 31, 2015 and $127.5 billion at December 31, mutual 2015. Average for the firstfund assets under management quarter of 2016 were $124.4 billion compared to $129.9 billion in the first quarter of 2015. were $132.9 billion assets under management at March 31, Total $148.4 billion2016 compared with at March 31, 2015 and $133.6 billion at December 31, total assets under 2015. Average 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D3 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D4 C C 6

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U IGM FINANCIAL INC. A T 1 _ • • to segments: Certain itemsreflectedinTables 2and3arenotallocated Segment OperatingResults sectionsoftheMD&A. operations arediscussedineachoftheirrespectiveReview of segments basedonEBITasshowninTables 2and3.Segment Management measures andevaluatestheperformanceofthese Corporate andOther. • (Mackenzie InvestmentsorMackenzie) • • Investors Group reporting,are: organizational structureandinternalfinancial IGM Financial’sreportablesegments,whichreflectthecurrent noet xs 13 55.1 41.3 2.2 2.2 TOTAL 210.5 257.6 RefertoNon-IFRSFinancialMeasuresandAdditionalIFRSinthisMD&AforanexplanationoftheCompany’susen (1) 60.2 489.4 CORPORATE & OTHER 480.5 57.7 282.4 266.3 149.3 154.0 Net earningsavailabletocommonshareholders MACKENZIE Perpetual Net earnings preferred 44.1 261.5 266.9 42.4 93.0 722.8 760.9 77.8 16.1 227.9 share 91.6 213.6 445.5 71.7 457.0 15.3 185.7 Income 210.9 147.4 145.0 76.2 77.6 dividends 135.0 121.3 Earnings taxes INVESTORS GROUP before Interest income Earnings beforeinterestandtaxes taxes expense $ 431.7 $ 435.5 $ 185.4 $ Non-Commission $ 63.7 $ 62.0 $ 206.7 679.1 $ Commission 705.9 Expenses 55.0 43.7 Net (22.9) 29.3 29.6 4.2 Fee investment Revenues 0.3 income income 21.5 13.8 ($ millions) and (22.8) other Operating earningsavailabletocommonshareholders IGM FINANCIALINC. FIRST THREE MONTHSENDED TABLE REPORTABLE SEGMENTS E n g Mackenzie –closingtheinvestmentmanagementoffice – activities relateto: relationships.Thelargestcomponentsofthese back office certain investmentmanagementactivitiesandthirdparty severance andpaymentstothirdpartiesrelatedexiting 2015 Restructuringandothercharges term debt. Interest expense 0

4 in Singaporeaswellimplementingotherpersonnel _ D I G 2: M MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 4 _ 2 CONSOLIDATED OPERATINGRESULTSBY POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 169.2 202.5 6 - 0 6 - 0 5 – representsinterestexpenseonlong- _ v 2016 2015 2016 2015 2016 2015 2016 2015 20162015 1 . i n QUARTER REPORT2016 / d d

D 4 $ 163.1 $ $ 32.8 33.9 $ 56.9 36.4 $ 233.4 190.7 $ 280.4 –primarilyreflects MANAGEMENT’S DISCUSSIONANDANALYSIS $ 167.0 $ 200.3 (1) (1) SEGMENT–

Q1 2016VS.2015 • • preferred shares. declared ontheCompany’s 5.90%non-cumulativefirst Perpetual preferredsharedividends effective income taxratesonforeignoperations. which alsoincludes,butisnotlimitedto,theeffectoflower reported inoperatingearningsisreflectedOtheritems, year. Theeffectofchangesinmanagement’sbestestimates taxes recordedinprioryearsmaybeadjustedthecurrent of itsprovisionforincometaxesand,asaresult, andregularlyassessestheoveralladequacy income taxfilings levels ofincometaxes.Managementmonitorsthestatusits Tax planningmayresultintheCompany recordinglower Table 4. Income taxes– InvestorsGroup–introducinganewin-housedealer –

long term. overthe and clientsisintendedtoachieveefficiencies platform willenhancetheserviceexperiencetoConsultants relationship withitsthirdpartycarryingbroker. Thisnew platform fornomineeaccountsandexitingitscurrent toMackenzieprovide greaterbenefits overtime. corporate priorities,whichmanagementbelieveswill changes inordertoredeploy

changesintheeffectivetaxratesareshown on-IFRS financialmeasures. 6. $200.3 $167.0 resources towardsother –representsthedividends

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MANAGEMENT’S DISCUSSION AND ANALYSIS on-IFRS financial measures. ORPORATE & OTHER OTHER & ORPORATE TOTAL . 31 31 . 31 DEC. 31 MAR. (2.87) (0.76) (2.79) (0.57) (2.29) (0.25) $ 167.0 $ 198.2

QUARTER REPORT 2016 / / QUARTER REPORT 2016 Q1 2016 VS. Q4 2015 Q1 2016 VS. 2016 2015 2015 2015 2015 2016 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER 26.84 % 26.73 % 26.61 %

SEGMENT – SEGMENT IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. (1) $ 167.0 $ 173.9 $ 167.0 $ MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 19.65 % 19.80 % 21.37 % 276.7 189.5 $ 233.4 36.4 $ 50.9 $ 33.9 36.3 $ $ 163.1 $ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER INCOME TAX RATE 5 (1) D

2016 2016 2015 2015 2016 2015 2016 2015 d d n i . 1 v _ 5 176.1 169.2 0 - 6 CONSOLIDATED OPERATING RESULTS BY OPERATING CONSOLIDATED 0 - 6 3: 1 0 2 _ M G I _ TABLE 4: EFFECTIVE TABLE 4: TABLE THREE MONTHS ENDED MAR THREE MONTHS ENDED THREE MONTHS Operating earnings available to common shareholders statutory rates Income taxes at Canadian federal and provincial of: Effect consolidation Loss affiliate’s earnings Proportionate share of (1) with Related Parties section of this MD&A for additional information. See the Transactions (3.56) (3.57) (2.70) (1) in this MD&A for an explanation of the Company’s use of n Refer to Non-IFRS Financial Measures and Additional IFRS Measures INVESTORS GROUP MACKENZIE C MACKENZIE GROUP INVESTORS other (23.2) and ($ millions) 13.8 17.6 income income 0.3 Revenues investment Fee 1.1 29.6 31.0 (22.9) Net 43.7 49.7 Expenses 705.8 Commission 679.1 $ 196.0 $ 62.0 61.7 $ $ Non-Commission 185.4 $ 448.1 $ 431.7 $ $ expense charges and taxes Earnings before interest other taxes and Interest income Restructuring before 127.2 135.0 77.6 72.3 149.0 147.4 taxes 197.1 Earnings 185.7 15.3 465.7 71.7 445.5 dividends 214.5 91.6 227.9 15.0 73.9 755.5 722.8 92.7 42.4 Income 264.3 261.5 41.4 share preferred Net earnings Perpetual 146.2 Net earnings available to common shareholders 149.3 276.2 282.4 57.7 478.8 489.4 56.4 – (33.9) 219.6 210.5 2.2 2.2 41.3 43.5 Other items Other Effective income tax rate – net earnings 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D5 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D6 C C 8

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U IGM FINANCIAL INC. A T 1 _ Review oftheBusinesssectionsinMD&A. Mackenzie arediscussedfurtherineachoftheirrespective Changes inassetsundermanagementforInvestorsGroupand total assetsundermanagementaredetailedinTable 5. 2015.Changesin atMarch 31, 2016 comparedto$148.4 billion Total atMarch 31, assetsundermanagementwere$132.9 billion N ts ls 47$ 8 (8)$ 6 7 6 6 970 5,499 66$ (801) 970 60$ (2) 216 66 79$ (28) 60 433 569$ (387) 588$ $ (282) 467$ (735) 6,469 79 – 3,159 $ 276 (576) 51 (1) 569 2,450 – (387) (141) (963) 3,728 588 3,038 326 467 675 985 302$ (189) CONSOLIDATED –$ – Beginning –$ $ assets 196$ 2,267 $ 4,672 $ – 2,365 $ 262$ 5,512 2,683 $ Net 842$ 3,689 $ 1,716 $ –$ change Market COUNSEL PLANNING –$ in and Net income $ assets undermanagement sales MACKENZIE Change intotalassets Net sales Gross 417 Combined sales 192 INVESTORS GROUP 46 Net 65 sales Gross andotheraccounts (121) sales (228) 120 537 497 156$ 348$ Sub-advisory, institutional 14$ 60$ 355 14$ 79$ (198) (106) 588$ $ Total 15$ $ 467$ $ 30$ mutual Net 4,145 91$ 3,940 fund 177 sales Net 112$ 245 $ net – 1,871 sales 382 1,731 2,104 1,964 sales 430$ Total 19$ long-term – mutual 17$ $ 196$ money Gross 2,267 $ 4,370 $ 2,365 $ 262$ 4,527 1,841 $ fund 102$ 1,973 $ market 110$ sales Gross 261$ gross 303$ Mutual funds – sales $ sales long-term – ($ millions) money market Ending assets IGM FINANCIALINC. FIRST THREE MONTHSENDED TABLE TOTAL ASSETSUNDERMANAGEMENT SUMMARY OFCHANGESIN E n g During thesecondquarterof2015,MDFinancialManagementreassignedsub-advisoryresponsibilitiesonfourfixedincomeman March 31, 2015). Total assetsundermanagementexcluded$7.2billionofsub-advisedbyMackenzieonbehalfInvestorsGroupandInvestm Counsel ($738millionand$247in2015). Total GrossSalesandNetexcluded$540million$93million,respectively,inaccountssub-advisedbyMackenzieonbe 0 4 _ D I G 5: M 6 _ 2 CHANGE INTOTALASSETS POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 (2) - 0 $ 75,223 $ 76,497 $ 60,690 $ 74,604 $ 4,229 $ 4,126 $ 132,913 $ 148,388 6 - 0 5

_ v 2016 2015 2016 2015 2016 2015 2016 2015 20162015 1 . i n QUARTER REPORT2016 / d d

D 6 UNDERMANAGEMENT MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 31 MAR. 74,897 73,459 61,653 3,850 4,178 70,876 133,648 141,919 MANAGEMENT’S DISCUSSIONANDANALYSIS INVESTMENT – Q12016VS.2015 fourth quarters of 2015 and 2.7% in the first quarter of 2016. quarterof2016. fourth quartersof2015and2.7%inthefirst of 2015,howeverdeclinedby2.1%and0.6%inthethird twoquarters assets generallyincreasedover2014andinthefirst reflect changesindomesticandforeignmarkets. Theseaverage over theeightmostrecentquarters,asshowninTable 6,largely Changes inaveragedailymutualfundassetsundermanagement measures tonetearningsinaccordancewithIFRS. most recentquartersandthereconciliationofnon-IFRS financial The SummaryofQuarterlyResults inTable 6includestheeight SUMMARY OFQUARTERLY RESULTS

dates (totalling$10.3billion)advisedbyMackenzie. half ofInvestorsGroupandInvestmentPlanning ent PlanningCounsel($6.8billionat

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IGM FINANCIAL INC. 1 1 - 5 0 - 6 116-05-11 3:11 PM 194.5 7 D

190.8

198.8

MANAGEMENT’S DISCUSSION AND ANALYSIS lts section included in this MD&A for an 213.6

215.9

QUARTER REPORT 2016 / / QUARTER REPORT 2016 208.4

214.5 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 227.9 $ 124.4 $ 127.8 $ 128.6 $ 131.4 $ 129.9 $ 124.6 $ 126.2 $ 123.6 $ 127.1 $ 127.5 $ 124.9 $ 129.7 $ 131.5 $ 126.0 $ 125.2 $ 125.2 $ 132.9 $ 133.6 $ 130.9 $ 136.0 $ 148.4 $ 141.9 $ 140.6 $ 141.4 ($ millions) (1) ($ millions)

($ billions)

($ billions)

POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 7 OF QUARTERLY RESULTS OF QUARTERLY (1) D

d (¢)

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5 0 - 6 0 - 6 1 0 2 _ M explanation of Other items used to calculate the Company’s Non-IFRS financial measures. Non-commission Non-commission G I _ TABLE 6: SUMMARY SUMMARY TABLE 6: Interest undernoted charges before costs other Earnings other and and Restructuring distributions taxes Client income before Earnings taxes Income dividends earnings shareholders share Net common $ 167.0 – $ 173.9 preferred $ 199.0 $ 198.5 210.5 $ 200.3 $ 148.9 to $ 219.7 $ 190.3 – 253.5 Perpetual 256.9 available (33.9) 256.7 257.6 earnings 266.0 – 286.4 Net 258.7 – 210.5 219.6 256.9 256.7 – 257.6 185.0 Reconciliation of Non-IFRS financial measures – 286.4 240.4 2.2 – 22.9 – 23.2 2.2 23.2 – 2.2 (81.0) 22.9 – 512.3 22.8 502.0 494.8 2.2 506.5 – 23.3 503.3 – 476.0 463.8 23.2 2.2 (18.3) 463.1 22.9 – 2.2 41.3 43.5 169.2 2.2 176.1 55.7 201.2 200.7 56.0 202.5 2.2 151.1 221.9 55.1 192.5 33.9 64.5 47.9 Total mutual fund assets under management Total assets under management (1) Financial Measures and Additional IFRS Measures in addition to the Summary of Consolidated Operating Resu Refer to Non-IFRS Operating earnings available to common shareholders Basic – Diluted – Net earnings available to common shareholders Basic – Diluted – Average daily mutual fund assets 69 69 81 81 81 81 69 69 80 80 71 71 80 80 81 81 83 83 80 80 87 87 80 80 81 81 59 59 87 87 75 75 shareholders – non-IFRS measure tax non-IFRS tax of – Operating earnings available to common of net shareholders net charges, costs, – other Other items: other – and (24.3) and Restructuring – distributions $ 167.0 $ 198.2 $ 199.0 $ 198.5 $ 200.3 Client $ 208.1 – 219.7 $ $ 203.9 IFRS – – Net earnings available to common – shareholders – – Earnings per Share – (59.2) – – – (13.6) – $ 167.0 $ 173.9 $ 199.0 $ 198.5 $ 200.3 $ 148.9 $ 219.7 $ 190.3 of earnings Consolidated statements Revenues fees Management fees other Administration and fees income Distribution investment Net 43.7 Expenses 49.7 Commission Q1 Q4 Q3 Q1 Q4 Q3 Q2 Q2 45.9 2015 2016 2015 2015 2015 2014 2014 2014 44.6 55.0 503.9 517.0 $ 507.4 $ $ 509.1 517.3 $ 508.5 $ $ 504.1 483.8 $ $ 46.2 46.2 100.3 104.7 104.6 32.5 106.0 102.3 100.7 102.0 99.3 95.0 97.0 92.7 95.3 94.5 87.7 85.0 86.1 261.5 264.3 263.2 722.8 267.7 755.5 266.9 751.7 253.9 763.2 249.8 760.9 245.7 742.0 750.2 721.8 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D7 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D8 C C 10

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U IGM FINANCIAL INC. A T 1 _ held theCertified FinancialPlanner(CFP)designation or its 2016,1,546individualsinourConsultant network At March 31, timesthatofaConsultantis five withlessthanfour years. gross salesperConsultant withgreaterthanfouryearsexperience productivity. Forexample,theaveragelevelofinvestmentfund more experienceandtenure,there 2016 comparedto2,819ayearearlier. Asnew Consultants gain years ofInvestorsGroupexperiencewas2,850atMarch 31, The individualsintheConsultant networkwithmorethanfour highest quarterendlevelinthehistoryofcompany. 2015.Thisrepresentsthe of 5,321,upfrom5,156atMarch 31, 2016, InvestorsGrouphadaConsultant network At March 31, our networkto117regionoffices. Greater Toronto Areawere tobeopenedinthe across Canada.Threenewregionoffices distribution networkofConsultants basedin114regionoffices advisor. Atthecentreoftheserelationshipsisanational based onthelengthofrelationshipwithfinancial non-advised households,andthatthisadvantageincreases advisorhavehigherassetsthan receiving advicefromafinancial studies inrecentyearswhichindicatethatclienthouseholds of long-termrelationships.Thisapproachisconsistentwith offering comprehensiveplanningtoitsclientswithinthecontext Investors Groupdistinguishesitselffromitscompetitionby Maximizingreturnsonbusinessinvestmentbyfocusing • Extendingthediversityandrangeofproductsofferedby • Providinganeffectivelevelofadministrativesupporttoour • advice,productsand Emphasizingthedeliveryoffinancial • Growingourdistributionnetworkbyexpandingthenumber • aligned. InvestorsGroup’s businessstrategyisfocusedon: shareholders, clients,Consultants andemployeesareclosely Investors Groupstrivestoensurethattheinterestsof IGM FINANCIALINC. FIRST CONSULTANT NETWORK INVESTORS GROUPSTRATEGY REVIEW OFTHEBUSINESS INVESTORS GROUP E n g control overexpenditures. Consultants andimproved andresultinincreasedefficiency clientsand resources oninitiativesthatdirectlybenefit enduring clientrelationships. Investors Groupaswecontinuetobuildandmaintain during alleconomiccycles. Consultants andclients,includingactivecommunication services throughourexclusivenetworkofConsultants. development. and supportingexistingConsultants intheirgrowthand attractingnewConsultantsof regionoffices, toourindustry 0 4 _ D I G M 8 _ 2 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 0 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 8 recently announcedandwillexpand is typically an increase in sales is typicallyanincreaseinsales MANAGEMENT’S DISCUSSIONANDANALYSIS platform is expected to result in efficiencies over the long term. overthelong term. platform isexpectedtoresultinefficiencies support thehighnetworthsegmentofourclientbase.Thenew the introductionofnewIIROC basedproductsdesignedto automation oftransactionactivity.Thisplatformwillalsosupport by athirdpartyserviceprovider (MFDA) nomineeaccountswhicharecurrentlyperformed Canada (IIROC) andMutualFund DealersAssociationofCanada preparation forInvestmentIndustryRegulatory Organizationof to internalizecarryingbroker functionalityandclientstatement Consultants andclients.Thisnewdealerplatformwillallowus 2016 whichwilldeliveranenhancedserviceexperienceto A newdealerplatformisscheduledtobeintroducedinAugust Platform Dealer New on the accompanying charts. The first chartreflectsin-quarter on theaccompanyingcharts.Thefirst net cashflowandfundholdingsineachquarterasillustrated Individual clientsexperiencedifferentreturnsasaresultoftheir the changeinassetvaluesoftheseholdingsduringquarter. reporting oftheirInvestorsGroupmutualfundholdingsand Regular communicationwith ourclientsincludesquarterly Statements Quarterly as at March 31, 2016. as atMarch 31, under managementinQuebecwereapproximately$13 billion Mutualfundassets Quebec andthe21regionoffices. supporting approximately1,100Consultants throughout over 250employeesandoperatingunitsformostfunctions has clients intherestofCanada.TheQuebecGeneralOffice Group’s inWinnipeg,ManitobaforConsultants headoffice and Consultants andclientsresidinginQuebecfromInvestors Group’s locatedinMontrealfor QuebecGeneralOffice This administrativesupportisprovidedfrombothInvestors improvements toservicingsystems. reporting, effectiveproblemresolutionsupport,andcontinuous timely andaccurateclientaccountrecord-keeping and Administrative supportforConsultants andclientsincludes education requirements,andaccountabilitytoethicalstandards. through education,standardized examinations,continuing planningcompetence individual todemonstratefinancial thatrequirean planningqualifications accepted financial 2015.TheCFPandF.Pl.March 31, designationsarenationally asCFPorF.Pl.to beorqualified isup23%from1,890at to gainthesedesignations.Thetotalof2,325thosestudying thereare779individualsenrolledintheseprograms In addition, Quebec equivalent,theFinancialPlanner(F.Pl.) designation. ADMINISTRATIVE SUPPORT ANDCOMMUNICATION FOR CONSULTANTS ANDCLIENTS , as well as provide increased , aswellprovideincreased 116-05-11 3:11PM 6 - 0 5 - 1 1

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90% of clients rate of return range 3.2 5 Year universe of 67.8% for three stars † MANAGEMENT’S DISCUSSION AND ANALYSIS are an objective, quantitative † 4.9 3 Year

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month anniversary date. Median Returns - % ROR % % ROR CLIENT ACCOUNT RATE OF RETURN (ROR) EXPERIENCE RATE OF RETURN CLIENT ACCOUNT 31, 2016 AS AT MARCH ASSETS UNDER MANAGEMENT FUND PERFORMANCE CLIENT EXPERIENCE SURVEY ranking service and 17.8% had a rating of four or fiveranking service stars. This compared to the Morningstar At March 31, funds 2016, 53.7% of Investors Group mutual had a rating of three stars or better from the Morningstar Consultants maintain a high degree of contact with our clients, maintain a high Consultants planning andcontinuing to reinforce the importance of long-term a diversified portfolio. Ongoing surveys of our clients investment advice and serviceindicate a strong appreciation of the value of through varying economic cycles. provided by our Consultants surveys to measure Investors Group has an ongoing program of client experience for new and existing clients: • receive a survey at their three All new Investors Group clients • annually. All existing clients are surveyed ending March 31,The results of the surveys for the four quarters 7. 2016 are detailed in Table The level of mutual fund assets under management is influenced by three factors: sales, redemptions and net asset values of our funds. Changes in assets under management for the periods 8. under review are reflected in Table or better and 33.3% for four and five March 31, star funds at 2016. Morningstar Ratings measure of a fund’s three, five risk-adjusted and ten year performance relative to comparable funds. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 90% of clients rate of return range 0.0 Q1 16 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER equired data has been gathered 9 D

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G Median Returns - % ROR % % ROR I _ CLIENT PERFORMANCE AND CLIENT PERFORMANCE AND OF RETURN REPORTING RATE client account median rates of return for the current year. The current year. client account median rates of return for the rates of return second chart reflects the client account median based on one, three and five year timeframes as at March 31, lower ranges of rates 2016. Both charts also illustrate upper and Group clients. of return around the median for 90% of Investors For the three months ended March 31, 2016, the client account and 50% of median rate of return was approximately 0.02% clients experienced positive returns. our clients Investors Group has long believed that providing rate of return with personal account level performance and meaningful benefitinformation over multiple time periods is a to provided through our clients and further demonstrates the value That is why in advice over the history of our client relationships. 2009 we took initial steps to develop this information for clients and we began capturing the necessary information to calculate account level money-weighted internal rates of return. Beginning with the June 30, 2015 client statement period, we added quarterly multiple-period account rate of return reporting client statements. This important to most Investors Group’s component of the rules adopted by the Canadian Securities Model Administrators as Phase 2 of the Client Relationship (CRM2) was implemented by Investors Group two years before the required deadline. As the r since 2009, our clients now have a multiple-period view of their three year and five year rates performance, including one year, of return. CLIENT ACCOUNT RATE OF RETURN (ROR) EXPERIENCE RATE OF RETURN CLIENT ACCOUNT 4

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U IGM FINANCIAL INC. A T 1 _ Inc., agloballeaderinriskparityinvestmentmanagement. The privatepoolissub-advisedbyPanAgora AssetManagement, diversifying riskacrossandwithinabroadarrayofassetclasses. aims togenerateattractiverisk-adjustedreturnsovertimewhile focusingontheallocationofrisk.This approach diversification driven byequities,riskparityutilizesauniqueapproachto of capital,whichresultsinabalancedportfolio’s riskbeing 2016. Whiletraditionalassetallocationfocusesonthe Parity PrivatePool,whichbecameavailableonJanuary 25, privatepool,InvestorsRisk Investors Groupannounceditsfirst of Canadianinvestors. new fundsthatarewell-suitedtothelong-termdiverseneeds and diversityofourinvestmentofferingwiththeintroduction Investors Groupcontinuestoenhanc e hnei ses 2 135 ,3 (61 (89.3) (76.1) 2.0 3,038 1.9 92 (4.1) 1,365 % 24.5 1.3 73,459 % (1.2) 326 73,532 $2,365 74,897 $1,821 1,777 1,821 $2,267 1,800 96 Average dailyassets Ending assets Beginning assets Net changeinassets Net sales(redemptions) Redemptions Sales ($ millions) Willingtorefer Satisfiedwithlevelofcontact Haveafinancialplan Satisfied with Client householdswith12+monthstenure service Willingtorefer Satisfiedwithdiscussionaboutgoalsandconcerns Offeredafinancialplan Satisfied with New clienthouseholdssurveyed90daysafteraccountopening service Surveys completedforthefourquartersendingMarch31,2016 aktadicm (4) ,6 2,450 1,365 (141) Market andincome IGM FINANCIALINC. FIRST THREE MONTHSENDED CHANGES TOMUTUAL TABLE 8: CHANGEIN TABLE 7: CLIENTEXPERIENCE E n g 0 4 _ D I G M 10 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 523 487 647 . (1.7) % 0.4 % $76,497 $74,897 $75,223 - 0 6 - 0 5 _ v 359 520 546 23 (2.5) % (2.3) % $75,456 $75,250 $73,549 1 . i n QUARTER REPORT2016 / d – 467 588 d MUTUAL FUNDASSETSUNDER

D FUND PRODUCTOFFERING 1 0 SURVEY – INVESTORSGROUP e theperformance,scope MANAGEMENT’S DISCUSSIONANDANALYSIS MANAGEMENT– INVESTORSGROUP MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 2016 2015 2015 2015 20152016 2015 Budget ProposalwilltreataswitchbetweenCorporate Class fund corporation(the“2016BudgetProposal”).The2016 switching betweendifferentclassesofshareswithinamutual would eliminatethedeferralofcapitalgainstaxforinvestors The March 22,2016,Federal Budgetannounced proposalsthat 2015. March 31, at in assetsundermanagementcomparedto$6.4 billion 2016,theCorporate ClassFunds totalled$7.1 billion March 31, the groupoffundswithnoimmediatetaxconsequences.At ability toswitchonafee-freebasisamong60fundswithin Corporate ClassInc.™isafundstructurewhichfeaturesthe funds andthe Corporate ClassInc.™,aswellacompletelineofportfolio manager investmentprogramswhichincludeInvestorsGroup Investors Groupoffersseveralmanagedassetandmulti- INVESTMENT PROGRAMS MANAGED ASSETANDMULTI-MANAGER i Profile managedassetprogram.InvestorsGroup Profile 88 85 92% 93 92 96% % CHANGE N/M N/M (20.6) N/M 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 13 1 1 - 5 0 - 6 116-05-11 3:11 PM 11 D ASSETS UNDER ASSETS UNDER MANAGEMENT’S DISCUSSION AND ANALYSIS Profile under program assets i – Q1 2016 VS. Q1 2015 Profile, are products with unbundled fee which i QUARTER REPORT 2016 / / QUARTER REPORT 2016 CHANGE IN MUTUAL FUND MANAGEMENT PanAgora Asset Management, Inc., Aristotle Capital Boston, LLC, LLC, Capital Boston, Inc., Aristotle Asset Management, PanAgora LLC. Asset Management and At March 31, 2016, the management were $1.6 billion, an increase of 36% from $1.2 billion at March 31, 2015. Investors Group’s mutual fund assets under management were Investors Group’s $75.2 billion at March 31,2016, representing a decrease of 1.7% from $76.5 billion at March 31, daily mutual fund 2015. Average assets were $73.5 billion in the first quarter of 2016, down 2.5% from $75.5 billion in the first quarter of 2015. For the quarter ended March 31, 2016, sales of Investors Group network were $2.3 billion,mutual funds through its Consultant in 2015. Mutuala decrease of 4.1% from the comparative period fund redemptions totalled $1.8 billion, an increase of 1.3% sales for the firstfrom 2015. Investors Group mutual fund net quarter of 2016 were $467 million compared with net sales of $588 million and income market During the first in 2015. quarter, resulted in a decrease of $141 million in mutual fund assets compared to an increase of $2.5 billion in the first quarter of 2015. $2.0 billionSales of long-term funds were for the first quarter Net sales of year. of 2016, a decrease of 6.7% from the previous long-term funds for the first quarter of 2016 were $355 million compared to net sales of $497 million in 2015. annualized quarterly redemption rate for Investors Group’s long-term funds was 8.9% in the first of 2016 compared quarter twelve to 8.8% in the first quarter of 2015. Investors Group’s month trailing redemption rate for long-term funds was 8.7% at March 31, 2016 compared to 8.5% at March 31, 2015, and remains well below the corresponding average redemption Institute of rate for all other members of the Investment Funds Canada (IFIC) of approximately 15.8% at March 31, 2016. Over the last several years, a component of the redemptions long-term redemption rate has included in Investors Group’s funds and transfers to Investors related to the Cornerstone The (GIFs). Group Series of Guaranteed Investment Funds Unbundled Fee Structures client assets are in Investors Group’s A growing portion of Series U and advisory fee is charged to the client structures where a separate At March 31,account by the dealer. $5.4 billion, 2016, or 7.2% mutual fund assets under management, of Investors Group’s unbundled fee structures, up 60% from were in products with $3.4 billion at March 31, 2015. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. Profile investment i POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER Profile pricing structure program has a i 1 1 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M increase of 32.1% from $17.4 billion at March 31, 2015. client’s account, advisory fee, which is charged directly to a funds. from the fees charged to the underlying investment At March 31, Series U assets under management had 2016, increased to $3.8 billion, compared to $2.2 billion at March 31, 2015, an increase of 73%. G I _ Profile™ Assets in Excess of $500,000 HIGH NET WORTH OFFERINGS HIGH NET WORTH i High net worth clients represent a growing segment of our High net worth clients Group has several offerings to address the client base. Investors clients and continues to look at ways to needs of high net worth to this segment. provide further offerings Pricing for Households with Investment differentiated Investors Group has investment solutions with Investors Group pricing for households with investments in funds in excess of $500,000. • Series J had assets of $23.0 billion at March 31,2016, an • structure which separates the Series U provides a pricing distributions to In September 2015, Investors Group provided to these lower priced solutions clients who had not transferred when they when they were eligible, up to the earlier of transferred or to April 30, 2015. funds occurring after September 2016 as a disposition at fair 2016 as a disposition after September funds occurring capital trigger will likely tax purposes which value for market series of shares between different Switches gains or losses. by the fund will not be affected Class same Corporate within the Investors Group continues to assess the 2016 Budget Proposal. Budget Proposal for Investors Group implications of the 2016 Class Inc. Corporate which separates the advisory fee, which is charged directly which separates the advisory fee, which is charged directly to a client’s account, from the fees charged to the underlying investment funds. The program is advised by a select group of global money Capital Investment Management, Toron management firms: I.G. Asset Management (Canada) Inc., Inc., JPMorgan Markets Limited, Baring International Investment Jarislowsky, Fraser Investment Management, Putnam Investments Limited, Laketon Aristotle Capital Investment Management, Inc., Canada ULC, This is a unique portfolio management program, launched This is a unique portfolio management program, in 2001, that is available for households with assets held at Investors Group in excess of $250,000. portfolios have been designed to maximize returns and manage and asset classes, management styles risk by diversifying across geographic regions. The 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D11 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D12 C C 14

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U IGM FINANCIAL INC. A T 1 _ from March 31, 2015. from March 31, unchanged 2016, totalsegregatedfundassetswere$1.7 billion, segregated fundsaremanagedbyInvestorsGroup.AtMarch 31, retirement incomeforlife.Theinvestmentcomponentsofthese (LIB)optiontoprovideguaranteed a LifetimeIncomeBenefit SelectGIFpoliciesallowfor and estateplanningefficiencies. guaranteefeatures,potentialcreditorprotection death benefit combined withriskmanagement,fullandpartialmaturity funds provideforlong-terminvestmentgrowthpotential portfolios andsixindividualsegregated funds.Thesesegregated Assurance Company andinclude14fund-of-fundsegregated GIFs aresegregatedfundpoliciesissuedbyTheGreat-West Life Investors GroupSeriesofGuaranteedInvestmentFunds (GIFs). Investors Groupofferssegregatedfundswhichincludethe previous quarter. inthe comparedtonetredemptionsof$93 million $355 million Net salesoflong-termfundsforthecurrent quarterwere inthepreviousquarter. current quartercomparedto$1.5 billion forthe quarter. Salesoflong-termfundswere$2.0 billion current quarterandcomparedto forthe Investors Groupmutualfundnetsaleswere$467 million quartercomparedto8.8%inthefourthof2015. first and theannualizedquarterlyredemptionratewas8.9%in quarter,the first decreased1.2%fromthepreviousquarter for 2015. Mutualfundredemptions,whichtotalled$1.8 billion anincreaseof24.5%fromthefourthquarter $2.3 billion, Group mutualfundsthroughitsConsultant networkwere 2016,salesofInvestors For thequarterendedMarch 31, inthefourthquarterof2015,adecrease2.3%. to $75.3 billion quarterof2016compared inthefirst assets were$73.5 billion 2015.Average dailymutualfund atDecember 31, $74.9 billion 2016,anincreaseof0.4%from atMarch 31, were $75.2 billion Investors Group’s mutualfundassetsundermanagement redemption rateforlong-termfundswouldhavebeen8.5%. 2016.Excludingsuchitems,thetwelvemonthtrailing March 31, GIFs, accountfor0.2%ofourlong-termredemptionrateat redemption activityand,togetherwiththetransfersto as asubstituteformoneymarket fundswhichhavehigher Money Market Fund. Thesefundsareusedbyourclients between 30%and50%oftheirassetsinInvestorsCanadian Cornerstone fundsareincomeportfoliowhichinvest IGM FINANCIALINC. FIRST SEGREGATED FUNDS OTHER PRODUCTSANDSERVICES MANAGEMENT CHANGE INMUTUALFUND E n g 0 4 _ D I G M 12 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 – Q12016VS.Q42015 _ v 1 . i n QUARTER REPORT2016 / d d

D 1 2 ASSETSUNDER zero netsalesintheprevious MANAGEMENT’S DISCUSSIONANDANALYSIS Canada MortgageBondProgram(CMBProgram).Securitization (NHA MBS)andareapprovedsellersofNHAMBSintothe issuers ofNationalHousingActMortgage-Backed Securities Canada MortgageandHousingCorporation (CMHC)-approved institutional investors.Certain subsidiariesofInvestorsGroupare Canadian Corporate BondFund, securitizationprograms,and the InvestorsMortgageandShortTerm IncomeFund, Investors by InvestorsGroupMortgagePlanningSpecialistsaresoldto Through itsmortgagebankingoperations,mortgagesoriginated that meettheindividualneedsandgoalsofeachclient. permitted bytheregulationstodevelopmortgagestrategies Canada, andworkwithourclientstheirConsultants as Planning Specialistsarelocatedthroughouteachprovincein plan.InvestorsGroupMortgage a comprehensivefinancial residential mortgagestoInvestorsGroupclientsaspartof Investors Groupisanationalmortgagelenderthatoffers will enhancehighnetworthinvestmentplanningcapabilities. separately managedaccountsandfee-basedwhich platform arealsoscheduledtobeintroducedandinclude platform in2016andnewproductsavailableundertheIIROC More Consultants areexpectedtotransitiontheIIROC planningcontext. within afinancial business modelwhichhasamanagedassetfocusdelivered These Consultants continuetooperateinourestablished Investment IndustryRegulatory OrganizationofCanada(IIROC). and completedthetransitionoftheirregistrationto securities. Inaddition,moreofourConsultants becameeligible our Consultants andarelicensedtoadviseonindividual additional SecuritiesPlanningSpecialistswhoworkalongside plan. Thisinvolvedfurtherdevelopmentofoursystemsand individual securitiesownedbyourclientswithintheirfinancial In 2015,wecontinuedtoenhanceourservicesaccommodate Group SecuritiesInc. of ourSecuritiesPlanningSpecialistsavailablethroughInvestors planning. InvestorsGroupConsultants canreferclientstoone andinvestment securities servicestocomplementtheirfinancial in allCanadianprovincesandterritoriesprovidingclientswith Investors GroupSecuritiesInc.isaninvestmentdealerregistered in 2015. anincreaseof8.6%from$17 million premiums were$18 million, sales ofinsuranceproductsasmeasuredbynewannualized 2016, Insurance ServicesInc.ForthequarterendedMarch 31, Investors GroupdistributesinsuranceproductsthroughI.G. MORTGAGE OPERATIONS SECURITIES OPERATIONS INSURANCE 116-05-11 3:11PM 6 - 0 5 - 1 1

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† 13 D All-in-One † offering totalled $3.1 billion at † MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 ADDITIONAL PRODUCTS AND SERVICES ADDITIONAL PRODUCTS AND SERVICES of credit and deposit account to meet the needs of our clients meet the needs of our deposit account to of credit and to costs. Clients have access overall interest while minimizing as well as a private labeled of banking machines, a network Banking centre. The Solutions and client service client website offering supports Investors Group’s approach to delivering total approach to Group’s offering supports Investors financial our clients through a broad financial solutions for lending products of Investors Group planning platform. Total Banking clients in the Solutions March 31, 2016. Banking credit associated with Solutions Available accounts originated for the quarter ended March 31,accounts originated for 2016 was $170 million, to $60 million compared in 2015. At March 31, of Solutions Banking All-in-One 2016, the balance outstanding products was $1.5 billion,39% which represented approximately accounts. of total available credit associated with these Investors Group also provides its clients with guaranteed Investors Group also provides its clients with Ltd., Co. investment certificates offered by Investors Group Trust as well as a number of other financial institutions. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. continues to experience continues to experience † POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER

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d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M G I _ SOLUTIONS BANKING SOLUTIONS Investors Group’s Solutions Banking Investors Group’s programs also include certain bank-sponsored asset-backed asset-backed include certain bank-sponsored programs also mortgages are Residential paper (ABCP) programs. commercial intermediary operations. Investors Group’s also held by the quarter ended March 31,Mortgage fundings for 2016, were $457 million to $389 million compared in 2015, an increase of 17.2%. At March 31, by Investors 2016, mortgages serviced banking operations totalled Group related to its mortgage $10.6 billion, compared to $10.0 billion at March 31, 2015, an increase of 5.7%. high rates of utilization by Consultants and clients. The offering by Consultants high rates of utilization provided by consists of a wide range of products and services distribution the under a long-term lines of credit, agreement and includes: investment loans, accounts, and credit personal loans, creditor insurance, deposit was introduced. cards. In April 2015, a new All-in-One product solution that This product is a comprehensive cash management loan, revolving line integrates the features of a mortgage, term 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D13 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D14 C C 16

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U IGM FINANCIAL INC. A T 1 _ due toonemorecalendardayin2016compared2015. infeeincome inthecurrent period by anincreaseof$2.6 million solutions. Thedecreaseinmanagementfeeswasoffsetpart from transfersofeligibleclientsintolowerfeeinvestment points in2015.Thisdeclinebasisresultedprimarily 2016was168.5basispointscomparedto169.9 March 31, management feerateforthethreemonthperiodended as adeclineintheaveragemanagementfeerate.The daily mutualfundassetsof2.5%,asshowninTable 8,aswell 2016wasduetothedecreaseinaverage ended March 31, The netdecreaseinmanagementfeesthethreemonths in2015. or2.5%from$316.2 million $8.0 million quarterof2016,adecrease inthefirst $308.2 million fund assetsundermanagement.Managementfeeswere depend largelyonthelevelandcompositionofmutual management servicesprovidedtoitsmutualfunds,which Investors Groupearnsmanagementfeesforinvestment the provisionofsecuritiesservicesprovideadditionalfeeincome. 8. 262 6. 22 6.0 2.2 0.1 266.3 (0.9) 11.3 276.2 (0.6) (35.8) 6.1 (3.7) 282.4 3.0 (1.5) 68.3 (21.6) 121.3 435.5 127.2 76.7 448.1 (2.5) 68.8 21.5 80.2 135.0 % 79.0 431.7 (3.4) 7.8 % 68.4 17.6 (5.5) 0.8 $316.2 (3.7) 46.3 13.8 $318.9 52.8 73.0 Earnings beforeinterestandtaxes 49.9 $308.2 76.4 73.6 Non-commission Assetretentionbonusandpremium Commission Expenses Netinvestmentincomeandother Distribution Administration Management fees fees Revenues fees ($ millions) distribution ofinsuranceandSolutionsBanking and distributionofInvestorsGroupmutualfunds.The Fee incomeisgeneratedfromthemanagement,administration presented inTable9. Investors Group’searningsbeforeinterestandtaxesare IGM FINANCIALINC. FIRST THREE MONTHSENDED TABLE 9: OPERATINGRESULTS FEE INCOME Q12015 Q1 2016VS. REVIEW OFSEGMENTOPERATING RESULTS E n g 4. 6. 457.0 465.7 445.5 0 4 _ D I G M 14 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 1 4 6. $195 9. (39 (14.5) % (13.9) % $190.7 $189.5 $163.1 – INVESTORSGROUP MANAGEMENT’S DISCUSSIONANDANALYSIS † productsand MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 2016 2015 2015 2015 20152016 2015 fee-based redemptions. depending onthelevelofdeferredsaleschargeattributableto products andredemptionfees.Redemption feeincomevaries primarily toincreasesindistributionfeeincomefrominsurance in2015,due from$46.3 million 2016 increasedby$3.6 million quarterof forthefirst Distribution feeincomeof$49.9 million BankingservicesprovidedthroughSolutions • SecuritiestradingservicesprovidedthroughInvestorsGroup • DistributionofinsuranceproductsthroughI.G. Insurance • Portfoliofunddistributionfees. • Redemption feesonmutualfundssoldwithadeferred • Distribution feesareearnedfrom: increase of0.8%. ayearago,an in thecurrent quartercomparedto$73.0 million under management.Administrationfeestotalled$73.6 million largely onthelevelandcompositionofmutualfundassets services toitsunittrustmutualfunds,whichalsodepend administrative servicestoitsmutualfundsandtrusteeship Investors Groupreceivesadministrationfeesforproviding intheprioryear. comparedto$0.7 million totalled $1.3 million market quarterof2016,thesewaivers funds.Forthefirst portion oftheinvestmentmanagementfeesonitsmoney also reflectedtheeffectofInvestorsGrouphavingwaiveda Management feeincome andaveragemanagementfeerates Securities Inc. Services Inc. sales charge. % CHANGE (4.3)

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IGM FINANCIAL INC. 17 1 1 - 5 0 - 6 116-05-11 3:11 PM N/M 15 D % CHANGE % MANAGEMENT’S DISCUSSION AND ANALYSIS nd to Investors Canadian Corporate Bond Fund as well QUARTER REPORT 2016 / / QUARTER REPORT 2016 quarter ended March 31,quarter ended 2016 to ($1.8) million compared fair due to favourable was primarily decrease to 2015. The securitization related in 2015 on certain value adjustments financial instruments. EXPENSES • $5.8 million – decreased by value adjustments the for Fair Investors Group incurs commission expense in connection with commission expense in connection with Investors Group incurs mutual funds and other financialthe distribution of its services of these are paid on the sale and products. Commissions with the level of sales. The expense for products and fluctuate consists of the amortization of the deferred selling commissions and the reduction of the unamortized asset over its useful life asset associated with redemptions. deferred selling commission sale of mutual funds are deferred and paid on the Commissions years. Commission amortized over a maximum period of seven expense was $79.0 million for the first quarter of 2016, an increase of $2.3 million from $76.7 million2015. The increase in commission resulted primarily from higher mutual fund balance amortization, higher write-offs of the unamortized with redemptions, of deferred selling commissions associated of other financialand compensation related to the distribution services and products. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER 2016 2015 2015 2015 2016 2015 2015 2015 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 217 275 332 (34.6) (21.1) 2.7 3.8 7.1 (28.9) 7.1 3.8 2.7 (62.0) (28.9) (1.7) (1.4) (1.7) (21.4) – IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. The increase resulted from POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 1 D

d (3) d n i . (1) 1 v _ 5 0 MORTGAGE BANKING OPERATIONS – INVESTORS GROUP MORTGAGE BANKING OPERATIONS – - 6 0 - 6 (1) (2) 10: 1 0 2 _ M as gains realized on those sales. $3.2 millionthe quarter ended March 31, for 2016 to $14.9 million compared to 2015. higher margins on securitized loans. by $4.4 million the quarter ended March 31, for 2016 to $2.7 million compared to 2015. The decrease in gains in the of sale activity.three month period resulted from a lower level G I _ TABLE NET INVESTMENT INCOME AND OTHER AND INCOME NET INVESTMENT THREE MONTHS ENDED (2) mortgage issuance and insurance costs, interest earned on warehoused mortgages, and servicing and other. Represents sold. amounts principal (3) Represents (1) sales to institutional investors through private placements, to Investors Mortgage and Short Term Income Fund, a Represents Other Securitizations Other $ 610 653 $ $ 378 % % (6.6) 61.4 $ 827 $ 928 $ 710 % % (10.9) 16.5 ($ millions) income Total mortgage banking income Interest on securitized loans Net interest income expense Interest income interest sales Net on Gains $ 46.4 $ 47.1 $ 47.1 % % 14.9 (1.5) 31.5 (1.5) 16.5 30.6 11.7 35.4 (9.7) 2.9 27.4 (11.0) Fair value adjustments adjustments value Fair Average mortgages serviced (1.8) (2.3) Securitizations 4.0 Other 21.7 Mortgage sales to: $ 14.1 $ 6,872 $ 16.6 $ 6,813 $ 21.1 $ 6,526 % 3,615 % 3,554 (15.1) (33.2) 3,404 % 0.9 10,487 $ % 5.3 1.7 10,367 $ $ 6.2 9,930 % 1.2 % 5.6 Net investment income and other includes income related to includes income related income and other Net investment related to net interest income operations and mortgage banking intermediary operations. and other was $13.8 millionNet investment income in the first of $7.7 millionquarter of 2016, a decrease from $21.5 million in 2015. mortgage related to Investors Group’s Net investment income $14.1 millionbanking operations totalled for the firstquarter $21.1 millionof 2016 compared to in 2015, a decrease of $7.0 million.operations for the A summary of mortgage banking in 10. The changes is presented in Table quarter under review due to: were mortgage banking income • securitized loans – increased by Net interest income on • Gains realized on the sale of residential mortgages – decreased 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D15 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D16 C C 18

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U IGM FINANCIAL INC. A T 1 _ mutual fundassetsundermanagement. 2015. Thedecreasewasprimarilyduetothechangeinaverage inthefourth quarterof quarter of2016from$76.4 million inthefirst Administration feesdecreasedto$73.6 million quarter of2016,unchangedfromthefourth2015. inthefirst Money market fundwaiverstotalled$1.3 million duetoonelesscalendardayinthe Adecreaseof$3.3 million • Thedecreaseinaveragedailymutualfundassets of2.3%for • quarterwasprimarilydueto: the first fourth quarterof2015.Thenetdecreaseinmanagementfees quarterof2016comparedwiththe inthe first $308.2 million or3.4%to Management feeincomedecreasedby$10.7 million investments insystemrelatedprojects. from these2015initiativesaswelltheeffectofcontinuing or11.3%.Theincreaseresultedlargely increase of$13.7 million in2015,an quarterof2016comparedto$121.3 million first forthe efforts. Non-commissionexpenseswere$135.0 million investment management,andotherbusinessdevelopment Consultant networkexpansion,advertisingandmediaefforts, were undertaken toimprovesupportinseveralareas,including: mutual fundsundermanagement.In2015,severalinitiatives and otherproducts,aswellsub-advisoryfeesrelatedto administration, marketing andmanagementofitsmutualfunds primarily relatetothesupportofConsultant network,the Non-commission expensesincurredbyInvestorsGroup Assetretentionpremium,whichisadeferredcomponentof • Assetretentionbonus,whichisbasedonthevalueofassets • the following: Asset retentionbonusandpremiumexpenseiscomprisedof IGM FINANCIALINC. FIRST FEE INCOME Q42015Q1 2016VS. E n g first quartercomparedtothefourthof2015. first the quarterasshowninTable 8. assets undermanagement. 2015. Theincreasewasrelatedtotheinyear-end comparedto 2016to$11.6 million quarter endedMarch 31, forthe retention premiumexpenseincreasedby$0.4 million based onassetsundermanagementateachyearend.Asset compensation designedtopromoteConsultant retention,is under management. The decreasewasprimarilyduetotheinassets comparedto2015. 2016to$56.8 million ended March 31, forthequarter under management,decreasedby$0.3 million 0 4 _ D I G M 16 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 1 6 MANAGEMENT’S DISCUSSIONANDANALYSIS undertaken in2015. other costsinadditiontotheeffectofannualizinginitiatives to thecontinuinginvestmentsinsystemrelatedprojectsand in thefourthquarterof2015.Theincreasewaslargelydue or6.1%from$127.2 million quarter, anincreaseof$7.8 million inthecurrent Non-commission expenseswere$135.0 million quarterof2016. inthefirst to $68.4 million retention bonusandpremiumexpensedecreasedby$0.4 million servicesandproducts.Theasset distribution ofotherfinancial decrease primarilyrelatedtolowercompensationthe inthepreviousquarter. The compared with$80.2 million Commission expenseinthecurrentquarterwas$79.0 million • Fair value adjustments – increased by $0.5 million in the first Fair inthefirst valueadjustments–increasedby$0.5 million • Gainsrealizedonthesaleofresidentialmortgages– • Netinterestincomeonsecuritizedloans–decreasedby • banking incomeweredueto: previous quarterasshowninTable 10.Thechangesinmortgage inthe from$16.6 million of 2016,adecrease$2.5 million quarter inthefirst banking operationstotalled$14.1 million Net investmentincome relatedtoInvestorsGroup’s mortgage Group’s mortgagebankingoperations. primarilyrelatedtoInvestors quarter, adecreaseof$3.8 million intheprevious quarterof2016comparedto$17.6 million first inthe Net investmentincome andotherwas$13.8 million as lowerredemptionfees. from insuranceproductsales,largelyduetoseasonality,aswell quarter primarilyduetodecreases indistributionfeeincome inthefourth from$52.8 million 2016 decreased by$2.9 million quarterof inthefirst Distribution feeincomeof$49.9 million EXPENSES NET INVESTMENTINCOME ANDOTHER instruments inthepreviousquarter. value adjustmentsoncertainsecuritizationrelatedfinancial in thepreviousquarterprimarilyduetounfavourablefair comparedto($2.3) million quarter of2016to($1.8) million, primarily duetolowervolumes. inthepreviousquarter comparedto$3.8 million $2.7 million, quarterof2016to inthefirst decreased by$1.1 million due tolowermargins. inthepreviousquarterprimarily compared to$16.5 million quarterof2016to$14.9 million, inthefirst $1.6 million 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 19 1 1 - 5 0 - 6 116-05-11 3:11 PM 17 D fund ranking † . † pronounced than in the retail pronounced than in the priced products and its focus MANAGEMENT’S DISCUSSION AND ANALYSIS had a rating of three stars or better † universe of 67.8% for three stars or better and † QUARTER REPORT 2016 / / QUARTER REPORT 2016 ASSETS UNDER MANAGEMENT FUND PERFORMANCE channel given the relative size and the nature of the distribution size and the nature of the distribution channel given the relative accounts. These accounts are also subject relationships of these rebalance activities which may result in to ongoing reviews and a significant under management. change in the level of assets is positioned to continue to build and enhance Mackenzie of experienced its distribution relationships given its team network, investment professionals, strength of its distribution broad product shelf, competitively are The changes in mutual fund assets under management 11 and the changes in total assets under summarized in Table 12. At March 31, 2016, management are summarized in Table fund and total assets under management mutual Mackenzie’s were $47.6 billion and $60.7 billion, respectively. assets under management is The change in Mackenzie’s value of the market determined by the increase or decrease in and by the the securities held in the portfolios of investments level of sales as compared to the level of redemptions. private label mutual fund arrangement with Lifeco subsidiary with Lifeco subsidiary mutual fund arrangement private label channel, Mackenzie’s the strategic alliance Quadrus. Within is with the head office relationship primary distribution of the or investment company. insurance company respective bank, provides investment Mackenzie In the institutional channel to pension plans, foundations and othermanagement services attracts new institutional business through institutions. Mackenzie and management consultants.its relationships with pension activity in strategic alliance and Gross sales and redemption can be more institutional accounts on client experience and investment excellence. Long-term investment performance is a key measure of Long-term investment performance is a key ongoing success. At March 31,Mackenzie’s 2016, 32.4% of rated in the top two performance mutual funds were Mackenzie quartiles for the one year time frame, 27.1% for the three year time frame and 37.3% for the five year time frame. Mackenzie also monitors its fund performance relative to the ratings it receives on its mutual funds from the Morningstar service. At March 31, mutual funds 2016, 54.4% of Mackenzie measured by Morningstar 33.3% for four and five star funds at March 31, 2016. These ratings exclude the Quadrus Group of Funds and 19.1% had a rating of four or five This compared to stars. the Morningstar

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER that directly impact the success 7 1 eyes. This impacts the strategic priorities eyes. This impacts the D

d their d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M performance G I _ MACKENZIE INVESTMENTS MACKENZIE REVIEW OF THE BUSINESS OF REVIEW MACKENZIE STRATEGY MACKENZIE we select to fulfil and drive future business that commitment mandate is two-fold: win in the Canadian growth. Our strategic meaningful strategic relationships, both in retail space, and build be the company of choice for institutional support of our goal to aim investors, financial We advisors and individual investors. by gathering the best minds in the to achieve this mandate to changing needs of financialinvestment industry, responding with distinctive and innovative solutions, advisors and investors in everything we do. and continuing to deliver institutional quality are six key Supporting this vision and strategic mandate strive to achieve: foundational capabilities that our employees • and consistent risk-adjusted Delivering competitive • quality and innovative products and services Launching high • and servicing capabilities Strengthening distribution • Building brand leadership • and process discipline excellence Focusing on operational • innovative culture Fostering a winning and seeks to maximize returns on business investment Mackenzie by focusing resources in areas distribution of our strategic mandate: investment management, and client experience. continues to build an investment Founded in 1967, Mackenzie research and advisory business through proprietary investment partners in a portfolio management while utilizing strategic focuses on multiple selected sub-advisory capacity. Our business Strategic Alliances and Institutional. distribution channels: Retail, distributes its retail investment products through Mackenzie sales teams work third party financial advisors. Mackenzie’s with many of the more than 30,000 independent financial advisors and their firmsIn addition to its retail across Canada. also has specialty teams focused distribution team, Mackenzie Within on strategic alliances and the institutional marketplace. offers certain series the strategic alliance channel, Mackenzie of its mutual funds and provides sub-advisory services to third party and related party investment programs offered by banks, insurance companies and other investment companies. Strategic alliances with related parties include providing advisory and services to Investors Group, Investment Planning Counsel subsidiaries, and also include a (Lifeco) Lifeco Inc. Great-West Mackenzie strives to ensure that the interests of shareholders, of shareholders, to ensure that the interests strives Mackenzie are closely aligned. clients and employees dealers, advisors, to the financial are committed of success vision: We Mackenzie’s investors, through 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D17 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D18 C C 20

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U IGM FINANCIAL INC. A T 1 _ 060 163 464 16 (18.7) % (1.6) % $74,604 (6.5) % $61,653 (1.7) % $60,690 $50,944 $48,445 $47,627 (44.8) (1.1) Average totalassets 23,660 13,208 Sub-advisory, Mutual institutional 13,063 funds Consists of: and other accounts e hnei ses 93 132 3,728 3,159 (27.3) 1,362 % 3.5 (1.6) 1,728 % 3.8 (963) $3,689 (576) $2,593 3,120 2,959 Duringthefourthquarterof2015,certainthirdpartyprogramswhichincludeMackenziemutualfundsmadefundallocationc (1) $2,683 3,070 Beginning assets Net changeinassets Market andincome Net sales(redemptions) 2,162 Redemptions 2,268 Sales (6.7) ($ millions) 1,025 % 1,452 11.4 (1.9) % (1.9) (818) $1,973 (620) $1,652 2,079 2,079 $1,841 2,039 48,445 2.2 (0.7) 47,420 48,782 Duringthefourthquarterof2015,certain thirdpartyprogramswhichincludeMackenziemutualfundsmadefundallocationc (1) Daily averagemutualfundassets Ending assets Beginning Net changeinassets assets Market andincome Net sales(redemptions) Redemptions Sales ($ millions) Ending assets 3 Basedondailyaveragemutualfundassetsandmonth-endsub-advisory,institutionalotherassets. (3) (2) IGM FINANCIALINC. FIRST THREE MONTHSENDED THREE MONTHSENDED TABLE TABLE E n g During thesecondquarterof2015,MDFinancialManagementreassignedsub-advisoryresponsibilitiesonfourfixedincomema redemptions of$297millionandnet$239million. redemptions of$297millionandnet$239million. 0 4 _ D I G 12: 11: M 18 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 CHANGE INTOTALASSETS CHANGE INMUTUALFUND 1 6 (2) 767 845 094 17 (6.5) % (1.7) % $50,944 $48,445 $47,627 - 0 060 163 464 16 (18.7) % (1.6) % $74,604 $61,653 $60,690 6

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D 1 8 672 843 042 36 (7.4) % (3.6) % $50,492 $48,493 $46,742 UNDERMANAGEMENT–MACKENZIE ASSETS UNDERMANAGEMENT–MACKENZIE MANAGEMENT’S DISCUSSIONANDANALYSIS

( 9) 47 (0) 53.6 (86.8) (198) (427) (106) 978 162 352 31 (18.8) % (3.1) % $73,592 $61,682 $ 59,778 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 61,653 2.3 (13.0) 60,291 70,876 37 (6) 6 (5.7) (387) (366) 569 2016 2015 2015 2015 20152016 2015 20152016 2015 ndates (totalling$10.3billion)advisedbyMackenzie. hanges whichresultedingrosssalesof$58million, hanges whichresultedingrosssalesof$58million, % CHANGE % CHANGE N/M N/M N/M N/M N/M N/M

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IGM FINANCIAL INC. 21 1 1 - 5 0 - 6 116-05-11 3:11 PM 19 D MANAGEMENT’S DISCUSSION AND ANALYSIS UNDER MANAGEMENT – UNDER MANAGEMENT – QUARTER REPORT 2016 / / QUARTER REPORT 2016 CHANGE IN ASSETS Q1 2016 VS. Q4 2015 Mackenzie’s mutual fund assets under management were mutual fund assets under Mackenzie’s $47.6 billion at March 31, 2016, a decrease of 1.7% from pre-tax earnings from these mandate changes is not meaningful. from these mandate pre-tax earnings had $10.3 billionThe mandates on June 5, in assets 2015 and assets for sub-advisory, ending in Mackenzie’s were included 12. at March 31, and other accounts institutional 2015 in Table a continues to advise MD on Mackenzie Following the change, number of fixed balanced and equity mandates. income, March 31,In the three months ended mutual 2016, Mackenzie’s $1.8 billion,fund gross sales were a decrease of 6.7% from $2.0 billion fund Mutual period last year. in the comparative period were $2.0 billion,redemptions in the current a decrease net redemptions for the Mutual fund of 1.9% from last year. March 31,three months ended 2016 were $198 million, as of $106 millioncompared to net redemptions During last year. in assets and income resulted market the current quarter, decreasing by $620 million as compared to an increase of $2.3 billionyear. last In the three months ended March 31, gross 2016, Mackenzie’s $2.7 billion,sales for total assets under management were a decrease of 27.3% from $3.7 billion in the comparative period in the current period were $3.1 billion, Redemptions last year. 1.6% lower than the first quarter of 2015. Net redemptions for the three months ended March 31, $387 million, 2016 were as compared to net sales of $569 million During last year. and income resulted in assets market the current quarter, decreasing by $576 million as compared to an increase of $3.2 billion last year. of long-term mutual funds in the three month Redemptions period ended March 31, 2016, were $2.0 billion, unchanged quarterly annualized from the first quarter of 2015. Mackenzie’s was 16.9% in the redemption rate for long-term mutual funds first quarter of 2016, compared to 16.2% in the first quarter twelve-month trailing redemption rate of 2015. Mackenzie’s March 31,for long-term mutual funds was 16.4% at 2016, The corresponding average as compared to 14.4% last year. twelve-month trailing redemption rate for long-term mutual funds for all other members of IFIC was approximately 15.2% at March 31, twelve-month trailing redemption 2016. Mackenzie’s rate is comprised of the weighted average redemption rate for front-end load assets, deferred sales charge and low load assets with redemption fees, and deferred sales charge assets without redemption fees (matured assets). Generally, redemption rates for front-end load assets and matured assets are higher than the redemption rates for deferred sales charge and low load assets with redemption fees.

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. seeks to seeks POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 1 UNDER MANAGEMENT – UNDER MANAGEMENT – D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M seeks to generate income, with an emphasis on capital seeks to generate income, preservation, by investing primarily in investment-grade fixed income securities denominated in Canadian or foreign governments. currencies that are issued by companies or Mackenzie Unconstrained Bond ETF (TSX:MUB) to provide cycle, a positive total return over a market conditions, by investing primarily in regardless of market fixed income the world securities of issuers anywhere in and in derivative instruments. Mackenzie Floating Rate Income ETF (TSX:MFT) in floating rate generate current income by investing primarily of issuers debt instruments and/or high yield debt securities located anywhere in the world. ETF (TSX:MKB) Mackenzie Core Plus Canadian Fixed Income investing seeks to provide a steady flow of income by and primarily in investment-grade Canadian government corporate fixed income instruments and asset-backed securities with maturities of more than one year. Mackenzie Core Plus Global Fixed Income ETF (TSX:MGB) Mackenzie Core Plus Global Fixed Income G I _ CHANGE IN ASSETS Q1 2016 VS. Q1 2015 CHANGES TO PRODUCT OFFERINGS CHANGES Mackenzie’s mutual fund assets under management were mutual fund assets under management Mackenzie’s $47.6 billion at March 31, 2016, a decrease of 6.5% from $50.9 billion at March 31, sub-advisory, Mackenzie’s 2015. institutional and other accounts at March 31, 2016 were $13.1 billion, a decrease of 44.8% from $23.7 billion last year. at March 31, total assets under management Mackenzie’s 2016 were $60.7 billion, a decrease of 18.7% from $74.6 billion at March 31, 2015. On June 5, 2015, MD Financial Management Inc. (“MD”) reassigned sub-advisory responsibilities on four fixed income The impact on Mackenzie’s mandates advised by Mackenzie. • • • Mackenzie’s diversified products is designed suite of investment Mackenzie’s continues investors. Mackenzie needs and goals of to meet the shelf by providing enhanced investment to evolve its product solutions for financial their investment clients. advisors to offer launched four unique fixed On April 19, 2016, Mackenzie The addition of these (ETFs). Funds income Exchange Traded broad and innovative fund complements Mackenzie’s active ETFs investor-focus vision to provide advisors line-up and reflects its solutions to drive investor outcomes and investors with new goals. These four fixedand achieve their personal income ETFs, Stock Exchange, offer investors Toronto which will trade on the to utilize in building long-term another investment option diversified will be managed by The suite of ETFs portfolios. and are as follows: Fixed Income Team Mackenzie’s • 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D19 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D20 C C 22

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U IGM FINANCIAL INC. A T 1 _ $297 million and net redemptions of $239 million. Excludingthis andnetredemptionsof$239 million. $297 million redemptionsof changes resultingingrosssalesof$58 million, which includeMackenzie mutualfunds,madefundallocation During thefourthquarterof2015,certainthirdpartyprograms, inthepreviousquarter. with netredemptionsof$427 million compared funds forthecurrentquarterwere$198 million the previousquarter. NetredemptionsofMackenzie mutual quarter, forthefirst decreasedby1.9%from totalled $2.0 billion the fourthquarterof2015.Mutualfundredemptions,which anincreaseof11.4%from fund grosssaleswere$1.8 billion, 2016,Mackenzie mutual For thequarterendedMarch 31, 2015,assummarizedinTableDecember 31, 12. at adecreaseof1.6%from$61.7 billion $60.7 billion, 2016,were total assetsundermanagementatMarch 31, 2016.Mackenzie’s atMarch 31, to$13.1 billion $13.2 billion institutional andotheraccountsdecreasedby1.1%from 2015.Mackenzie’s sub-advisory, atDecember 31, $48.4 billion IGM FINANCIALINC. FIRST E n g 0 4 _ D I G M 20 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 2 0 MANAGEMENT’S DISCUSSIONANDANALYSIS were $215 million. the fourthquarterof2015,netredemptionslong-termfunds in thepreviousquarter. Excludingrebalancetransactionsduring comparedtonetredemptionsof$454 million were $228 million Net redemptionsoflong-termfundsforthecurrentquarter the fourthquarter, excludingrebalancetransactions,was14.3%. annualized quarterlyredemptionrateforlong-termfunds 16.9%, comparedto16.7%forthefourthquarter. Mackenzie’s for long-termmutualfundsthecurrent quarterwas of 2015.Mackenzie’s annualizedquarterlyredemptionrate unchangedfromthefourthquarter quarter were$2.0 billion, Redemptions oflong-termmutualfundassetsinthecurrent in thefourthquarter. comparedtonetredemptionsof$188 million were $198 million compared tothefourthquarterof2015,andnetredemptions quarterof2016 and redemptionsincreased14.4%inthefirst transaction inthefourthquarter, grosssalesincreased15.5% 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 23 1 1 - 5 0 - 6 116-05-11 3:11 PM 21 D e in retail-priced products, e in retail-priced products, % CHANGE % MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 following the loss of certain sub-advisory mandates from MD following the loss of certain Inc. as previously discussed. In addition, Financial Management day in the firstthere was one more calendar quarter of 2016 than in the first in of 2015 which resulted in an increase quarter the current quarter. management fees in providing earns administration fees primarily from Mackenzie funds. Administration fees were $22.4 millionservices to its mutual March 31,for the three months ended to 2016, as compared $25.5 million 2015, as part of the retail in 2015. Effective April 1, operating expensepricing changes previously announced, the fund 1, 2007 wasadjustment that had been in place since August was entitled to adiscontinued. Under this adjustment, Mackenzie not exceed a pre- payment from certain funds should such funds eliminating the fundestablished level of net assets. The impact of in administration feesoperating expense adjustment was a decline of $1.0 million for the three months ended March 31, 2016. earns distribution fee income on redemptions of Mackenzie charge purchase mutual fund assets sold on a deferred sales fees Redemption option and on a low load purchase option. assets range from 5.5% in the charged for deferred sales charge first year and decrease to zero after seven years. Redemption 3.0% in the firstfees for low load assets range from 2.0% to to zero after two or three years, depending year and decrease in the three on the purchase option. Distribution fee income average management fee rate in the first fee rate in average management of 2016 was quarter The 98.1 basis points in 2015. points compared to 108.0 basis a change fee rate was due to average management increase in management, including of assets under in the composition a greater shar the impact of having FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER 2016 2015 2015 2015 2015 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. $ 36.4 $ 50.9 $ 56.9 % (28.5) % (36.0) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 2 D

d d n i . 1 v _ 5 0 OPERATING RESULTS – MACKENZIE - 6 0 - 6 13: 1 0 2 _ M G I _ REVIEW OF SEGMENT OPERATING RESULTS OPERATING SEGMENT OF REVIEW Q1 2016 VS. Q1 2015 REVENUES TABLE THREE MONTHS ENDED fees ($ millions) fees Revenues fees Distribution Management Administration 3.2 Net investment income and other (21.9) 2.4 4.2 2.5 commission Expenses Commission Trailing Non-commission 22.4 23.8 $ 160.5 Earnings before interest and taxes 25.5 $ 169.8 0.3 (5.9) $ 178.0 (12.2) 57.4 1.1 % 60.1 185.4 (5.5) 14.3 62.1 77.6 196.0 % 185.7 13.8 (9.8) 72.3 206.7 4.2 15.7 197.1 (4.5) 76.2 (7.6) 210.9 (5.4) 3.6 7.3 (72.7) 149.3 (8.9) (10.3) 1.8 (5.8) 146.2 (11.9) (92.9) 154.0 2.1 (3.1) The largest component of Mackenzie’s revenues is management of Mackenzie’s The largest component fees depends on the level fees. The amount of management under management. Management and composition of assets on the investment objective and the fee rates vary depending assets under management. For account type of the underlying mandates have higher management example, equity-based fee rates than fixed income mandates and retail mutual fund management fee rates than sub-advised accounts have higher mutual Mackenzie’s and institutional accounts. The majority of fund assets are purchased on a retail basis. retail mutual fund offering, certain series Within Mackenzie’s dealers are offered for fee-based programs of participating by the dealer whereby dealer compensation is charged directly does not pay the to a client (primarily Series F). As Mackenzie management fees. dealer compensation, these series have lower At March 31, these series had $3.6 billion 2016, in assets, an increase of 16.3% from the prior year. Management fees were $160.5 million for the three months ended March 31, 2016, a decrease of $17.5 million from or 9.8% $178.0 million The net decrease in management fees year. last management was due to the decline in average assets under of 18.8% in the three months ended March 31, 2016, offset rate. Mackenzie’s by an increase in average management fee Mackenzie’s earnings before interest and taxes are presented in and taxes are presented before interest earnings Mackenzie’s 13. Table 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D21 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D22 C C 24

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U IGM FINANCIAL INC. A T 1 _ $1.4 million or 1.8% from $76.2 million in2015. or1.8%from$76.2 million $1.4 million 2016,anincreaseof in thethreemonthsendedMarch 31, management. Non-commissionexpenseswere$77.6 million administration, marketing andmanagementofitsassetsunder Non-commission expensesareincurredbyMackenzie inthe points in2015. 2016,comparedto49.2basis the threemonthsendedMarch 31, mutual fundassetsundermanagementwere49.1basispointsin 2016.TrailingMarch 31, commissionsasapercentageofaverage 7.4% inaveragemutualfundassetsforthethreemonthsended The changeintrailingcommissionsresultedfromthedeclineof lastyear. or7.6%from$62.1 million a decreaseof$4.7 million 2016, inthethreemonthsendedMarch 31, were $57.4 million front-end, deferredsaleschargeorlowload.Trailing commissions fund typeandthepurchaseoptionuponwhichwassold: fund assetsundermanagement.Thesefeesvarydependingonthe retail mutualfundsandarecalculatedasapercentageof Trailing commissionspaidtodealersareoncertainclassesof of deferredsalescommissionsassociatedwithredemptions. years combinedwithlowerwrite-offsoftheunamortizedbalance the loweramountofdeferredsalescommissionspaidinrecent lastyear. Thisdeclineisconsistentwith compared to$15.7 million 2016,as inthethreemonthsendedMarch 31, was $14.3 million applicable deferredsaleschargeassets.Commission expense period ofsevenyearsfromthedateoriginalpurchase purchase oftheapplicablelowloadassetsandoveramaximum over amaximumperiodofthreeyearsfromthedateoriginal with redemptions.Mackenzie amortizessellingcommissions of theunamortizeddeferredsellingcommissionassetassociated the amortizationofassetoveritsusefullifeandreduction option. Theexpensefordeferredsellingcommissionsconsistsof mutual fundsonadeferredsaleschargeandlowloadpurchase Mackenzie payssellingcommissionstothedealersthatsellits in2015. $154.0 million or3.1%from 2016,adecreaseof$4.7 million ended March 31, forthethreemonths Mackenzie’s expenseswere$149.3 million last year. 2016comparedto$4.2 million March 31, forthethreemonthsended income andotherwas$0.3 million and aresoldasthirdpartyinvestorssubscribe.Netinvestment investments aregenerallymadeintheprocessoflaunchingafund related toMackenzie’s investmentsinproprietaryfunds.These Net investmentincomeandotherincludesreturns lastyear. from$3.2 million $0.7 million adecreaseof 2016was$2.5 million, months endedMarch 31, IGM FINANCIALINC. FIRST EXPENSES E n g 0 4 _ D I G M 22 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 2 2 MANAGEMENT’S DISCUSSIONANDANALYSIS expenses normally incurred in the first quarter.expenses normallyincurredinthefirst The increaserelatedprimarilytotheseasonalnatureofcertain inthefourthquarterof2015. quarter comparedto$72.3 million inthecurrent Non-commission expenseswere$77.6 million points inthefourthquarterof2015. quarterwas49.1basispointscomparedto49.6 the first under management.Theeffectivetrailingcommissionratefor 3.6% periodoverdecreaseinaveragemutualfundassets quarter of2015.Thechangeintrailingcommissionsreflectsthe inthefourth or4.5%from$60.1 million decrease of$2.7 million Trailing inthecurrentquarter, a commissionswere$57.4 million 2016, anincreaseof3.6%fromthefourthquarter2015. inthequarterendedMarch 31, commissions was$14.3 million Commission expenserelatedtotheamortizationofselling in thefourthquarterof2015. or2.1%from$146.2 million quarter, anincreaseof$3.1 million forthecurrent Mackenzie’s expenseswere$149.3 million inthefourthquarterof2015. quarter comparedto$1.1 million forthecurrent investment incomeandotherwas$0.3 million a fundandaresoldasthirdpartyinvestorssubscribe.Net investments aregenerallymadeintheprocessoflaunching related toMackenzie’s investmentsinproprietaryfunds.These Net investmentincomeandotherincludesreturns average assetsundermanagement. quarter. Thedecreaseinthequarterwasduetoadecline intheprior or5.9%from$23.8 million decrease of$1.4 million inthecurrentquarter, a Administration feeswere$22.4 million quarterof2016 Therewasonelesscalendardayinthefirst • Mackenzie’s averagemanagementfeeratewas108.0basis • Average totalassetsundermanagementwere$59.8 billion • in managementfeesareasfollows: fourth quarterof2015.Factors contributingtothenetdecrease inthe or5.5%from$169.8 million a decreaseof$9.3 million forthecurrentquarter, Management feeswere$160.5 million in thefourthquarterof2015. or5.8%from$197.1 million quarter, adecreaseof$11.4 million forthecurrent Mackenzie’s revenues were$185.7 million Q1 2016 VS. Q42015 Q1 2016VS. REVENUES EXPENSES decrease of$1.8 million. than inthefourthquarterof2015,whichresulteda composition ofassetsundermanagement. points inthefourthquarterof2015duetoachange points inthecurrent quarterascomparedto109.5basis quarter, adecreaseof3.1%. intheprior in thecurrentquartercomparedto$61.7 billion 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 25 1 1 - 5 0 - 6 116-05-11 3:11 PM 23 D % CHANGE % MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 Q1 2016 VS. Q4 2015 section of this MD&A, offset in part by lower interest income on by lower interest MD&A, offset in part section of this equivalents. cash and cash related to Investment interest and taxes Earnings before were $0.6 millionPlanning Counsel higher in the first quarter of 2016 period in 2015. compared to the same and other totalled $29.6 millionNet investment income in the first compared to $31.0 million quarter of 2016 in the fourth due to a decrease in the Company’s quarter of 2015 primarily as discussed in the earnings Lifeco’s proportionate share of Position section of this MD&A. Financial Consolidated to Investment Earnings before interest and taxes related were $1.1 millionPlanning Counsel lower in the first quarter of 2016 compared with the previous quarter. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER 2016 2015 2015 2015 2016 2015 2015 2015 MAR. 31 DEC. 31 MAR. 31 DEC. 31 MAR. 31 IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. $ 33.9 $ 36.3 $ 32.8 % (6.6) % 3.4 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 2 D

d d n i . 1 v _ 5 0 OPERATING RESULTS – CORPORATE AND OTHER OPERATING RESULTS – CORPORATE AND - 6 0 - 6 14: 1 0 2 _ M G I _ CORPORATE AND OTHER AND CORPORATE REVIEW OF SEGMENT OPERATING RESULTS RESULTS OPERATING SEGMENT OF REVIEW Q1 2016 VS. Q1 2015 TABLE THREE MONTHS ENDED ($ millions) income Revenues Fee income and other Net investment Expenses Commission Non-commission Earnings before interest and taxes 29.6 $ 62.0 $ 61.7 31.0 $ 63.7 15.3 42.4 91.6 15.0 41.4 29.3 92.7 % 16.1 0.5 44.1 93.0 % (2.7) 57.7 2.0 (4.5) (1.2) 2.4 56.4 (5.0) (1.5) 60.2 (3.9) 1.0 2.3 (4.2) The Corporate and Other segment includes net investment includes net investment and Other segment The Corporate Group or Mackenzie allocated to the Investors income not of share of earnings proportionate the Company’s segments, operating results Lifeco Inc. (Lifeco), its affiliate, Great-West as Inc., other income, as well Counsel for Investment Planning entries. consolidation elimination interest and taxes are and other earnings before Corporate 14. presented in Table and other increased to $29.6 millionNet investment income in the firstof 2016 compared to $29.3 million quarter in 2015. month period was largely due to The increase in the three proportionate share of Lifeco’s an increase in the Company’s Position Financial earnings, as discussed in the Consolidated 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D23 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D24 C C 26

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U IGM FINANCIAL INC. A T 1 _ E ut euiis 1. 13 1. 10.5 12.2 11.3 12.1 34.2 33.7 45.0 44.7 $6.1 $6.0 $8.6 $8.5 Proprietary Fair valuethroughprofitorloss Equity investment securities Available forsale Proprietary funds ($ millions) investment funds orloss. recognized atfairvaluethroughprofit asheldfortradingand securities ofthesefundsareclassified Annual Report (AnnualFinancialStatements).Theunderlying Financial Statementsincludedinthe2015IGMInc. investment fundasdiscussedinNote2oftheConsolidated the Company hasmadetheassessmentthatitcontrols Certain proprietaryinvestmentfundsareconsolidatedwhere other intheConsolidated StatementsofEarnings. gains andlossesarerecordedinNetinvestmentincome equity securitiesandproprietaryinvestmentfunds.Unrealized orlossinclude asfairvaluethroughprofit Securities classified and anysubsequentlossesarealsorecordedinnetearnings. totheConsolidatedthey arereclassified StatementsofEarnings that thereisobjectiveevidenceofimpairment,atwhichtime income untiltheyarerealizedormanagementdetermines available forsalesecuritiesarerecordedinOthercomprehensive proprietary investmentfunds.Unrealizedgainsandlosseson asavailableforsaleincludeinvestmentsin Securities classified in Table 15. The compositionoftheCompany’s securitiesholdingsisdetailed 2015. 2016, unchangedfromDecember 31, atMarch 31, IGM Financial’stotalassetswere$14.8 billion IGM FINANCIALINC. FIRST TABLE FAIR VALUE THROUGHPROFITORLOSSSECURITIES AVAILABLE FORSALESECURITIES SECURITIES CONSOLIDATED FINANCIALPOSITION IGM FINANCIALINC. E n g 0 4 _ D I G 15: M 24 _ 2 0 SECURITIES POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 2 4 MANAGEMENT’S DISCUSSIONANDANALYSIS MARCH 31,

sponsored NationalHousingActMortgage-Backed Securities Company securitizesresidentialmortgagesthroughtheCMHC by thirdpartiesthatinturnissuesecuritiestoinvestors.The planning specialistsaresoldtosecuritizationtrustssponsored residential mortgagesoriginatedbyInvestorsGroupmortgage Through theCompany’s mortgagebankingoperations, originatedbysubsidiariesofLifeco. $2.3 billion ofresidentialmortgages,including Group services$12.9 billion or Canadianbanksponsoredsecuritizationprograms.Investors including CanadaMortgageandHousingCorporation (CMHC) primarily throughsalestothirdpartiesonafullyservicedbasis, Residential mortgagesoriginatedbyInvestorsGrouparefunded held temporarilybytheCompany pendingsaleorsecuritization. asheldfortradingareresidentialmortgages Loans classified 2015. atDecember 31, 2016, comparedto$7.1 billion atMarch 31, entities, hasbeenrecordedandtotalled$7.2 billion investors. Anoffsettingliability,Obligationstosecuritization sponsored bythirdpartiesthatinturnissuesecuritiesto of residentialmortgagessoldtosecuritizationprograms asloansandreceivablesareprimarilycomprised Loans classified 2015. December 31, 2016,comparedto49.8%at 51.2% oftotalassetsatMarch 31, Loans consistedofresidentialmortgagesandrepresented The compositionoftheCompany’s loansisdetailedinTable 16. SECURITIZATION ARRANGEMENTS LOANS 53 49 19 $50.8 $51.9 $64.9 44.7 $ 65.3 45.9 56.3 56.8 OT ARVLE OT FAIR VALUE COST FAIR VALUE COST 2016

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IGM FINANCIAL INC. 27 1 1 - 5 0 - 6 116-05-11 3:11 PM 25 D 2016 2015 MARCH 31 31 MARCH DECEMBER 31 MANAGEMENT’S DISCUSSION AND ANALYSIS $ 7,576.8 $ 7,392.4 384.2 577.9 $ 7,576.8 $ $ 1,417.0 $ 1,451.6 1,417.0 $ $ (13.7) (12.9) $ 6,999.6 $ 7,008.9 6,999.6 $ 7,008.2 $ 6,998.9 MAR. 31 MAR. 31 QUARTER REPORT 2016 / / QUARTER REPORT 2016 INVESTMENT IN AFFILIATE In the first quarter of 2016, the Company securitized loans In the first quarter of 2016, the Company cash proceeds of through its mortgage banking operations with $596.9 million compared to $374.2 million 2015. Additional in securitization activities, information related to the Company’s hedges of related reinvestment and including the Company’s Risk section of interest rate risk, can be found in the Financial Statements. this MD&A and in Note 4 of the Interim Financial 4% equity Investment in affiliate represents the Company’s IGM Financial and Lifeco Inc. (Lifeco). interest in Great-West Lifeco are controlled by Power Financial Corporation. Financial’s The equity method is used to account for IGM as it exercises significantinvestment in Lifeco, influence. The earnings is recorded proportionate share of Lifeco’s Company’s and other Corporate in Net investment income and other in the value for the three reportable segment. Changes in the carrying months ended March 31, 2016 compared with 2015 are shown 17. in Table

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. interest income and interest 794.4 904.3 $ $ POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER omprehensive income (loss) and other adjustments 12.1 (4.5) 802.9 930.5 $ $

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Fair value, end of period Carrying value, end of period Proportionate share of other c ($ millions) Carrying value, beginning of period received Proportionate share of earnings Dividends 27.8 25.9 ($ millions) Loans and receivables allowance Less: Collective Held for trading 0.7 0.7 expense, utilizing the effective interest rate method, recorded expense, utilizing the effective interest rate of swaps over the term of the mortgages, (ii) the component the Company entered into under the CMB Program whereby and receives pays coupons on Canada Mortgage Bonds repaid mortgage investment returns on the reinvestment of cash reserves held principal, are recorded at fair value, and (iii) cost. under the ABCP program are carried at amortized (NHA MBS) and the Canada Mortgage Bond Program (CMB (NHA MBS) and the Canada asset-backed Program) and through Canadian bank-sponsored retains commercial paper (ABCP) programs. The Company of credit risk and servicing responsibilities and certain elements assets. The prepayment risk associated with the transferred mortgages is mitigated credit risk on its securitized Company’s of financialthrough the use of insurance. Derecognition the transfer of assets in accordance with IFRS is based on has retained risks and rewards of ownership. As the Company risk associated prepayment risk and certain elements of credit transactions through the securitization with the Company’s for as secured CMB and ABCP programs, they are accounted records the transactions under these borrowings. The Company related obligations programs as follows: (i) the mortgages and are carried at amortized cost, with 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D25 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D26 C C 28

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U IGM FINANCIAL INC. A T 1 _ in thefourthquarterof2015.AdjustedEBITDAforeachperiod quarterof2015and$346.4 million inthefirst $348.9 million quarterof2016comparedto inthefirst $304.2 million depreciation andamortization(AdjustedEBITDA)totalled from itsoperations.Adjustedearningsbeforeinterest,taxes, cashflows IGM Financialcontinuestogeneratesignificant Financecommonsharer • Pay quarterlydividendsonitsoutstandingcommonshares. • Maintainliquidityrequirementsforregulatedentities. • Pay interestanddividendsrelatedtolong-termdebt • Temporarily mortgagesinitsmortgagebanking finance • Financeongoingoperations,includingthefundingofselling • Working capitalisutilizedto: the Company’s depositoperations. 2015.Working capitalexcludes atMarch 31, $1,277.1 million 2015and atDecember 31, compared with$980.3 million 2016 atMarch 31, Working capitaltotalled$841.8 million 2015, asshowninTable 18. atMarch 31, 2015and $4.7 million atDecember 31, $2.8 million 2016,comparedto atMarch 31, operations were$3.2 million Cash andcashequivalentsrelatedtotheCompany’s deposit 2015. atDecember 31, 2016 comparedwith$983.0 million atMarch 31, Cash andcashequivalentstotalled$607.2 million ahadcs qiaet $ . $ . $ 4.7 $ 234.3 2.8 $ 292.3 3.2 283.0 $ Total assets Loans Accountsandotherreceivables Cashandcashequivalents Assets ($ millions) Total liabilitiesandshareholders’equity Shareholders’ equity Other liabilities Deposit liabilities Liabilities andshareholders’equity IGM FINANCIALINC. FIRST TABLE LIQUIDITY CONSOLIDATED LIQUIDITYANDCAPITAL RESOURCES E n g normal courseissuerbid. preferred shares. operations. commissions. 0 4 _ D I G 18: M 26 _ 2 0 DEPOSIT OPERATIONS–FINANCIALPOSITION

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D 2 epurchases relatedtotheCompany’s 6 1. $305 $263.4 $320.5 $311.7 MANAGEMENT’S DISCUSSIONANDANALYSIS 2016 2015 2015 20162015

funding risk. the Company’s exposuretoandmanagementofliquidity for informationrelatedtoothersourcesofliquidityand Refer totheFinancialInstrumentsRisksectionofthisMD&A rating agenciesinreviewingassetmanagementcompanies. is acommonmeasureutilizedbyinvestmentanalystsandcredit being animportantalternativemeasure ofperformance,EBITDA inthefourthquarterof2015.Aswellas 2015 and$58.6 million quarterof inthefirst quarter of2016comparedto$58.7 million inthefirst selling commissionswhichtotalled$59.8 million under reviewexcludestheimpactofamortizationdeferred • A net decrease of $9.2 million in deposits and certificates in indepositsandcertificates Anetdecreaseof$9.2 million • 2016 comparedto2015relatedto: Financing activitiesduringthethreemonthsendedMarch 31, in 2015. in2016ascomparedto$131.7 million were $39.7 million Cash flowsfromoperatingactivities,netofcommissionspaid, in2015. in2016comparedto$84.8 million were $73.8 million in2015.Cashcommissionspaid compared to$216.5 million 2016,as duringthequarterendedMarch 31, $113.5 million Operating activities,beforepaymentofcommissions,generated in2015. quarter comparedtoadecreaseof$93.1 million inthe Cash andcashequivalentsdecreased by$375.8 million 2016. Financial StatementsforthequarterendedMarch 31, Statements ofCashFlowswhichformsparttheInterim Table 19–CashFlowsisasummaryoftheConsolidated CASH FLOWS 2016 compared to a net increase of $29.2 million in2015. 2016 comparedtoanetincreaseof$29.2 million MAR. 31 DEC. 31 MAR. 31 MAR. 31 DEC. 31 MAR. 2. 54 24.4 25.4 25.5 1. $305 $263.4 $320.5 $ 311.7 0. $301 $252.5 $310.1 10.3 $ 300.9 0.5 9.9 0.5 10.3 0.6 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 29 1 1 - 5 0 - 6 116-05-11 3:11 PM N/M N/M 27 D MANAGEMENT’S DISCUSSION AND ANALYSIS (73.8) (84.8) 13.0 (227.7) 1.2 (187.8) (226.0) 16.9 QUARTER REPORT 2016 / / QUARTER REPORT 2016 CAPITAL RESOURCES CAPITAL The Company’s capital management objective is to maximize capital management objective The Company’s is Company shareholder returns while ensuring that the supports regulatory capitalized in a manner which appropriately expansion. requirements, working capital needs and business practices are focused on capital management The Company’s preserving the quality of its financial position by maintaining Capital of the a solid capital base and a strong balance sheet. of long-term debt, perpetual preferred shares consists Company $6.1 billionand common shareholders’ equity which totalled at March 31, 2016, compared to $6.2 billion at December 31, its capital management regularly assesses 2015. The Company conditions. practices in response to changing economic its ongoing capital is primarily utilized in The Company’s requirements, business operations to support working capital business long-term investments made by the Company, subject expansion and other strategic objectives. Subsidiaries to regulatory capital requirements include investment dealers, dealers, portfolio managers, mutual fund dealers, exempt market investment fund managers and a trust company. These subsidiaries are required to maintain minimum levels of capital based on either working capital, liquidity or shareholders’ equity. subsidiaries have complied with all regulatory The Company’s capital requirements. The total outstanding long-term debt was $1,325.0 million at March 31, 2016, unchanged from December 31, 2015. Long-term debt is comprised of debentures which are senior subject to standard unsecured debt obligations of the Company covenants, including negative pledges, but which do not include any specified financial or operational covenants. 31 MAR. 31 MAR. CHANGE % FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. % (45.9) 1,122.9 607.2 $ $ (93.1) (375.8) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER issuance of common shares of 7 2 D

d d FLOWS n i . 1 v _ 5 0 - 6 0 - 6 19: CASH 1 0 2 _ M obligations to securitization entities compared to a net obligations to securitization entities compared decrease of $61.7 million in 2015. $0.4 million in 2016 compared with $12.2 million in 2015. a cost of IGM Financial’s normal course issuer bid at $104.3 million compared with the purchase of 1,385,000 common shares at a cost of $62.1 million in 2015. totalled $2.2 million unchanged from 2015. in 2016, totalled $137.8 million in 2016 compared to $141.4 million in 2015. securities with proceeds of $10.8 million in 2016 compared to $10.0 million and $21.8 million, respectively, in 2015. to a net decrease of $7.9 million related in 2015 primarily mortgage to residential mortgages in the Company’s banking operations. acquisitions were $17.0 million in 2016 compared to $13.9 million in 2015. G I _ TABLE THREE MONTHS ENDED THREE MONTHS 2016 2015 Decrease in cash and cash equivalents Decrease in cash and beginning of period Cash and cash equivalents, end of period Cash and cash equivalents, • A net increase of $65.2 million in 2016 arising from • Proceeds received on the 983.0 1,216.0 (19.2) ($ millions) Operating activities paid Before payment of commissions Commissions Net of commissions paid Financing activities Investing activities • $ common shares in 2016 under The purchase of 2,991,900 113.5 $ 216.5 • preferred share dividends which The payment of perpetual 39.7 • common share dividends which The payment of regular (47.6) % 131.7 ended March 31,Investing activities during the three months to: 2016 compared to 2015 primarily related • (69.9) The purchases of securities totalling $24.9 million and sales of • A net increase in loans of $183.5 million in 2016 compared • Net cash used in additions to intangible assets and 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D27 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D28 C C 30

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U IGM FINANCIAL INC. A T 1 _ for long-term debt. This rating indicates S&P’s view that the for long-termdebt.ThisratingindicatesS&P’sviewthatthe debentures byS&Pisthesixthhighestof22ratingsused The AratingassignedtoIGMFinancial’sseniorunsecured rating organization. and aresubjecttorevisionorwithdrawalatanytimebythe reflect thepotentialimpactofallrisksonvaluesecurities security foraparticularinvestor. Theratingsalsomaynot or otherfactorsthatmightdeterminesuitabilityofaspecific the securitiesofCompany anddonotaddressmarket price These ratingsarenotarecommendationtobuy,sellorhold obtained fromtherespectiveratingagencies’websites. categories foreachoftheagenciessetforthbelowhavebeen with thetermsofeachobligation.Descriptionsrating the capacityofacompanytomeetitsobligationsinaccordance a companyandareindicatorsofthelikelihood ofpaymentand independent measureofthecreditqualitysecurities Credit ratingsareintendedtoprovideinvestorswithan stable ratingtrend. Company’s seniorunsecureddebenturesis“A (High)”witha Dominion BondRatingService’s (DBRS)currentratingonthe senior unsecureddebenturesis“A” withastableoutlook. The currentratingbyStandard&Poor’s(S&P)oftheCompany’s bid willbecompletedbaseduponmanagement’sdiscretion. periods, purchasesundertheCompany’s normalcourseissuer periods. Outsideofthesepre-determinedtradingblackout issuer bidduringcertainpre-determinedtradingblackout common sharesaretobe provides standardinstructionsregardinghowIGMFinancial’s its commonshares.Theautomaticsecuritiespurchaseplan has establishedanautomaticsecuritiespurchaseplanfor In connectionwithitsnormalcourseissuerbid,theCompany Statements ofChangesinShareholders’Equity. in commonsharecapitalarereflectedtheConsolidated or$0.5625pershare.Changes share dividendsof$136.1 million or$0.36875pershareandcommon dividends of$2.2 million in 2016includedthedeclarationofperpetualpreferredshare and forothercapitalmanagementpurposes.Otheractivities stock optionsissuedundertheCompany’s stockoptionplan its commonsharesinordertomitigatethedilutiveeffectof course issuerbidonMarch20,2016topurchaseup5%of Financial Statements).TheCompany commencedanormal under itsnormalcourseissuerbid(refertoNote5theInterim 2016atacostof$104.3 million three monthsendedMarch 31, The Company purchased2,991,900commonsharesduringthe 2015. remain unchangedfromDecember 31, 2016 atMarch 31, Perpetual preferredsharesof$150 million IGM FINANCIALINC. FIRST E n g 0 4 _ D I G M 28 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D purchased underitsnormalcourse 2 8 MANAGEMENT’S DISCUSSIONANDANALYSIS Obligationstosecuritizationentitiesare valuedbydiscounting • asloansandreceivablesarevaluedby Loansclassified • asheldfortradingarevaluedusingmarket Loansclassified • assetsandliabilitiesarevalued Securitiesandotherfinancial • assumptions: Fair valueisdeterminedusingthefollowingmethodsand liabilities. certain otherfinancial assets,accountspayableandaccruedliabilities, financial cash equivalents,accountsandotherreceivables,certain approximation offairvalue.Theseitemsincludecashand measured atfairvalueifthecarryingamountisareasonable liabilitiesnot assetsandfinancial value informationforfinancial liabilities.Thetableexcludesfair assetsandfinancial financial Table 20presentsthecarryingamountsandfairvaluesof the rating. an understandingofDBRS’sopinionregardingtheoutlookfor According toDBRS,the“Stable” ratingtrendhelpsgiveinvestors factors areconsideredmanageable. may bevulnerabletofutureevents,butqualifyingnegative While thisisafavourablerating,entitiesintheA(High)category obligationsissubstantial. capacity forthepaymentoffinancial debt securitiesratedA(High)areofgoodcreditqualityandthe for long-termdebt.UndertheDBRSratingscale, highestofthe26ratingsused debentures byDBRSisthefifth The A(High)ratingassignedtoIGMFinancial’sseniorunsecured intermediate term. S&P considersthattheratingisunlikely tochangeoverthe According toS&P, the“Stable” ratingoutlook meansthat economic conditionsthanobligationsinhigherrated categories. susceptible totheadverseeffectsofchangesincircumstancesand obligation isstrong,butthesomewhatmore Company’s commitmentonthe capacitytomeetitsfinancial FINANCIAL INSTRUMENTS terms andcharacteristics. securities issuedbythesesecuritizationentitieshavingsimilar the expectedfuturecashflowsatprevailingmarket yieldsfor market yields. discounting theexpectedfuturecashflowsatprevailing interest ratesforloanswith similarcreditriskandmaturity. in thevaluationtechniques. flows. Whereverpossible,observablemarket inputsareused discount ratesandthetiming andamountoffuturecash techniques areusedthatrequireassumptionsrelatedto When aquotedmarket priceisnotreadilyavailable,valuation using quotedpricesfromactivemarkets, whenavailable. 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 31 1 1 - 5 0 - 6 116-05-11 3:11 PM 31, 2015 29 D DECEMBER

MANAGEMENT’S DISCUSSION AND ANALYSIS 2016 2016 QUARTER REPORT 2016 / / QUARTER REPORT 2016 CARRYING VALUE VALUE CARRYING FAIR VALUE VALUE CARRYING FAIR VALUE See Note 10 of the Interim Financial Statements which provides See Note 10 of the Interim Financial Statements of fair value of additional discussion on the determination financial instruments. carrying values and Although there were changes to both the fair values of financial instruments, these changes did not have for a material impact on the financial condition of the Company the three months ended March 31, 2016. MARCH 31, MARCH FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 2 D

d d n i . 1 v _ 5 0 FINANCIAL INSTRUMENTS FINANCIAL - 6 0 - 6

20: 1 0 2 _ M contractual cash flows using market interest rates currently contractual cash flows using market credit risks. offered for deposits with similar terms and debenture available in the market. rates for prices, where available, prevailing market market maturities, or instruments with similar characteristics and discounted cash flow analysis. G I _ TABLE • Deposits and certificates are valued by discounting the • using quoted prices for each Long-term debt is valued • Derivative financial instruments are valued based on quoted ($ millions) at fair value Financial assets recorded Securities instruments financial for sale – Available Loans – Held for trading Derivative – Held for trading instruments receivables Other financial assets at amortized cost Financial assets recorded and Loans Loans financial – Derivative at fair value Financial liabilities recorded certificates and entities Other financial liabilities Financial liabilities recorded at amortized cost Deposits securitization 66.4 66.4 to 58.4 Obligations 58.4 debt Long-term 58.4 58.4 57.8 $ 57.8 6,998.9 8.6 7,249.8 56.3 $ 577.9 7,154.9 7,008.2 8.6 7,264.2 7,265.9 300.9 302.3 56.3 9.3 577.9 7,092.4 310.1 311.8 $ 7,272.4 6.1 9.3 44.7 $ 5.7 384.2 6.1 1,325.0 1,657.3 44.7 384.2 5.7 9.3 1,325.0 1,661.2 9.3 4.1 4.1

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U IGM FINANCIAL INC. A T 1 _ TheInvestmentCommittee overseesmanagement ofthe • TheExecutiveCommittee isresponsiblefortheoversightof • following committees: managementmandateprimarilythroughthe out its risk The BoardofDirectorsprovidesoversightandcarries Company’s InternalAuditDepartment. and the Department, corporateanddistributioncompliancegroups, is providedbytheEnterpriseRiskManagement(ERM) the ExecutiveCommittee oftheBoard.Additionaloversight an executiveRiskManagementCommittee accountableto risk managementineachbusinessunitandoversightby Company ownershipof anditssubsidiaries,withidentified comprehensive andconsistentframeworkthroughoutthe The Company’s riskgovernancestructureemphasizesa Management Committee. the Company’s ERMPolicy,whichisapprovedbytheRisk management culture.TheERMFramework isestablishedunder riskmanagementprocess,and risk principles,adefined coreelements:riskgovernance,appetite, which includesfive through itsEnterpriseRiskManagement(ERM)Framework The Company’s riskmanagementapproachisundertaken program isprotectingandenhancingourreputation. and return.Fundamental toourenterpriseriskmanagement taking inordertoachieveanappropriatebalancebetweenrisk business unitsandseekstoensure prudentandmeasuredrisk- coordinates riskmanagementacrosstheorganizationandits risk managementapproach.Theapproach management cultureandtheimplementationofaneffective to itsongoingsuccess.TheCompany emphasizesastrongrisk in itsbusinessactivities.Itsabilitytomanagetheserisksiskey The Company isexposedtoavarietyofrisksthatareinherent IGM FINANCIALINC. FIRST RISK GOVERNANCE RISK MANAGEMENTFRAMEWORK RISK MANAGEMENT E n g regular basistoensurethatitisfunctioningeffectively. riskmanagementprocessona thefinancial iii) reviewing procedures andcontr implementation andmaintenanceofappropriatepolicies, risks inaccordancewithtolerances,ii)monitoringthe procedures areinplac liquidity andfundingriskby:i)ensuringthatappropriate Company’s risks,beingmarket financial risk,creditand basis toensure thatitisfunctioningeffectively. and iii)reviewingtheriskmanagementprocessonaregular procedures andcontr establish risktolerances,ii)ensuringthatappropriatepolicies, procedures areinplac enterprise riskmanagementby:i)ensuringthatappropriate 0 4 _ D I G M 30 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d ols to manage financial risks,and ols tomanagefinancial ols areimplementedtomanagerisks, e to identify and manage financial e toidentifyandmanagefinancial e toidentifyandmanagerisks

D 3 0 MANAGEMENT’S DISCUSSIONANDANALYSIS Management Committee. and riskappetiteoftheorganizationasestablishedbyRisk aligning businessandoperationalstrategieswiththeriskculture identifying opportunitiesforriskreductionortransfer, andiv) risks, ii)implementingcontrolactivitiestomitigateiii) assessment, documentationandescalationof identification, include: i)establishingandmaintainingproceduresforthe Responsibilities ofbusinessunitandsupportfunction leaders risk managementassociatedwiththeirrespectiveactivities. have primaryownershipandaccountabilityfortheongoing The leadersofthevariousbusinessunitsandsupportfunctions Defence of Line First ERM Framework. assurance andvalidationofthedesigneffectiveness functions andaThirdLineInternalAuditfunctionproviding risk management,supportedbySecondLinemanagement reflecting thebusinessunitshavingprimaryresponsibilityfor using theThreeLinesofDefencemodel,withFirstLine The Company hasassignedresponsibilityforriskmanagement respective companies. overall responsibilityforoverseeingriskmanagementoftheir oftheoperatingcompanieshave The ChiefExecutiveOfficers and reinforcingastrongcultureofriskmanagement. strategy andriskappetite,iv)establishing“toneatthetop” Company’s andpr riskprofile theCompany’s riskappetite,iii)ensuringthe policy, ii) defining andmaintainingtheriskframework by: i) establishing providing oversightoftheCompany’s riskmanagementprocess Officer. The committeeisresponsibleformanagement Financial Officer, andtheGeneralCounsel andChiefCompliance of theCo-Presidents theChief andChiefExecutiveOfficers, executive RiskManagementCommittee whichiscomprised Management oversightforriskmanagementresideswiththe riskoversightresponsibilities Othercommitteeshavingspecific • TheAuditCommittee riskoversightresponsibilities hasspecific • Directors, Officers andEmployees(CodeDirectors, Officers ofConduct). administration oftheCode ofBusinessConduct andEthics for Committee whichoverseesconflictsofinterestaswellthe practices, andiii)theRelated Party andConduct Review Nominating Committee whichoverseescorporategovernance compensation policiesandpractices,ii)theGovernance include: i)theCompensation Committee whichoversees compliance activities. the controlenvironmentaswellCompany’s disclosure,internalcontrolsand in relationtofinancial ocesses arealignedwithcorporate 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 33 1 1 - 5 0 - 6 116-05-11 3:11 PM 31 D opriate risk taking, and often are MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 emerging risks and risk response. emerging risks changing circumstances. KEY RISKS OF THE BUSINESS RISK MANAGEMENT CULTURE • identification Appropriate of existing and and understanding • of risks based upon and escalation Timely monitoring ability Significant affect the Company’s risks that may adversely and business objectives are identifiedto achieve its strategic management process. ongoing risk through the Company’s across our organizations use a consistent methodology We identificationand business units for assessment of risks. and of evaluating the impact and likelihood Risks are assessed by after consideration of controls and any the potential risk event The results of these assessments are risk transfer activities. risk appetite and tolerances and may considered relative to result in action plans to adjust the risk profile. on an ongoing Risk assessments are monitored and reviewed including the ERM basis by business units and by oversight areas and coordinates Department. The ERM Department promotes effective risk communication and consultation to support regularly management and escalation. The ERM Department on the assessment reports on the results of risk assessments and and to the process to the Risk Management Committee Board. of the Executive Committee Risk management is intended to be everyone’s responsibility responsibility Risk management is intended to be everyone’s engages within the organization. The ERM Department and all business units in workshops to foster awareness business activities. incorporation of our risk framework into our have an established business planning process which We compensation reinforces our risk management culture. Our do not encourage programs are typically objectives-based, and or reward excessive or inappr identifies risks to which its businesses and The Company operations could be exposed considering factors both internal and external to the organization. These risks are broadly grouped into six categories. aligned specifically with risk management objectives. Our risk management program emphasizes integrity, ethical practices, responsible management and measured risk-taking with a long-term view. Our standards of integrity and ethics are to directors, which applies of Conduct reflected within our Code officers and employees. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. oups which are responsible for POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 1 3 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M operating environment. G I _ RISK MANAGEMENT PROCESS RISK APPETITE AND RISK PRINCIPLES The Company’s risk management process is designed to foster: The Company’s • Ongoing assessment of risks and tolerance in a changing Third Line of Defence line of defence and The Internal Audit Department is the third management and provides independent assurance to senior of risk management the Board of Directors on the effectiveness policies, processes and practices. the Company’s establishes The Risk Management Committee Risk Appetiteappetite for different types of risk through the one of four the Risk Appetite Framework, Under Framework. and businessappetite levels is established for each risk type levels range from These appetite activity of the Company. for risk and seeks to has no appetite those where the Company readily accepts minimize any losses, to those where the Company exposure while seeking to ensure that risks are well understood and managed. These appetite levels guide our business units as they engage in business activities, and inform them in establishing policies, limits, controls and risk transfer activities. A Risk Appetite Statement and Risk Principles provide further guidance to business leaders and employees as they conduct risk management activities. The Risk Appetite Statement’s emphasis reputation and brand, ensure is to maintain the Company’s financial flexibility, and focus on mitigating operational risk. Second Line of Defence provides (ERM) Department Risk Management The Enterprise to the Risk Management and reporting oversight, analysis risk the level of risks relative to the established on Committee Other responsibilities of the Company. appetite for all activities and maintaining the enterprise risk include: i) developing and framework, ii) managing the management program process, and iii) providing guidance enterprise risk management unit and support function leaders. and training to business has a number of committees of senior business The Company oversight of specificleaders which provide business risks, Risk Management and Information including the Financial committees. These committees perform Services Risk Oversight practices critical reviews of risk assessments, risk management units and and risk response plans developed by business support functions. the Company’s Other oversight accountabilities reside with corporate and sales compliance gr regulations. ensuring compliance with policies, laws and 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D31 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D32 C C 34

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U IGM FINANCIAL INC. A T 1 _ Pension funding including certainmutualfunds,institutionalinvestorsthrough operations, residentialmortgagesaresoldtothirdparties long-term fundingsources.Throughitsmortgagebanking temporarily holdmortgagespendingsaleorsecuritizationto The Company liquiditytofundand alsomaintainssufficient cash flows. on thesaleofmutualfundscontinuetobepaidfromoperating commissions paidonthesaleofmutualfunds.Commissions A key fundingrequirementfortheCompany isthefundingof OversightofliquiditymanagementbytheFinancialRisk • Ongoingeffortstodiversifyandexpandlong-termmortgage • Regular assessmentofcapitalmarket conditionsandthe • Performingregularcashforecastsandstresstesting. • Ensuringeffectivecontrols overliquiditymanagement • Maintainingliquidassetsandlinesofcredittosatisfynear • The Company’s liquiditymanagementpracticesinclude: due orarise. to meetcontractualoranticipatedcommitmentsastheycome cashinatimelyandcost-effectivemanner or obtainsufficient Liquidity andfundingriskistheofinabilitytogenerate ogtr et – – 525.0 800.0 1,325.0 Includesfutureminimumleasepaymentsrelatedtoofficespaceandequipmentusedinthenormalcourseofbusiness. (1) 282.6 8.0 7.7 2.6 Operating leases Long-term 300.9 – $ $ Obligations 18.3 $ Deposits – debt 38.8 $ Derivative 1.3 $ to 1,062.2 58.4 and ($ millions) financial 6,061.2 securitization 31.5 certificates 7,154.9 instruments entities Total contractualobligations (2) The next required actuarial valuation will be completed based on a measurement date of December 31, 2016.Pensionfundingr ThenextrequiredactuarialvaluationwillbecompletedbasedonameasurementdateofDecember 31, (2) IGM FINANCIALINC. FIRST AS AT MARCH31,2016 TABLE LIQUIDITY ANDFUNDINGRISK RISK FINANCIAL 1) E n g of Directors. leaders, andbytheInvestmentCommittee oftheBoard Management Committee, business acommitteeoffinance funding sources. Company’s abilitytoaccessbankandcapitalmarket funding. processes. term liquidityneeds. Lease paymentsarechargedtoearningsintheperiodofuse. market performance,regulatoryrequirements,changesinassumptionsandmanagement’sabilitytochangefundingpolicy. variability andwillbedeterminedbasedonfutureactuarialvaluations.Pensioncontributiondecisionsaresubjecttochange, 0 4 _ D I G 21: M EAD ER ER 5YAS TOTAL 5 YEARS YEARS 1 YEAR DEMAND 32 _ 2 0 CONTRACTUAL OBLIGATIONS POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 (2) 6 (1) - 1. – – – 16.1 16.1 0 – 26.6 80.8 43.1 150.5 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 3 2 $ 282.6 $ 1,131.2 $ 6,713.5 $ 878.5 $ 9,005.8 MANAGEMENT’S DISCUSSIONANDANALYSIS LS HN - AFTER LESS 1-5 THAN lines of $350 million (December 31, 2015 – $350 million) and 2015–$350 million) (December 31, lines of$350 million 2016consistedofcommitted lines ofcreditasatMarch 31, 2015.The 2016, unchangedfromDecember 31, at March 31, as Schedule ICanadiancharteredbankstotalled$525 million lines ofcredit.TheCompany’s linesofcreditwithvarious cash equivalents,liquidityisavailablethroughtheCompany’s In additiontoIGMFinancial’scurrentbalanceofcashand The Company’s contractualobligationsarereflectedinTable 21. Continued toassessadditionalfundingsources forthe • Continued toexpandourfundingchannelsbyissuingNHA • the Company: As partofongoingliquiditymanagementduring2016and2015, upon market conditionsandissubjectto change. by CMHC.Theavailabilityofmortgageinsuranceisdependent that securitizedloansbeinsuredbyaninsurerisapproved to change.AconditionoftheNHAMBSandCMBProgramis market conditionsandgovernmentregulationsthataresubject securitization trustsandNHAMBSisdependenton fund residentialmortgagesthroughCanadianbank-sponsored Reinvestment Accounts.TheCompany’s continuedabilityto and reinvestmentofprincipalrepaymentsheldinthePrincipal the CMBProgramconsistsofparticipationinnewissues bank-sponsored securitizationtrusts.Capacityforsalesunder Company maintainscommittedcapacitywithincertainCanadian sales toCanadaHousingTrust undertheCMBProgram. The Mortgage-Backed Securities(NHAMBS)securitiesincluding trusts, andbyissuancesaleofNationalHousingAct private placements,Canadianbank-sponsoredsecuritization Company’s mortgagebankingoperations. MBS tomultiplepurchasers. as contributionsareaffectedbymanyfactorsincluding equirements beyond2016aresubjecttosignificant 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 35 1 1 - 5 0 - 6 116-05-11 3:11 PM 33 D MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 mortgage portfolio default insurance held by the Company; and mortgage portfolio default insurance held by the Company; own network of Mortgage Planning Specialists and Investors as part of a client’s comprehensive Group Consultants financial plan. (December 31, 2015 – $4.6 billion), is obligated the Company timely payment of principal and coupons irrespective to make Mortgage Portfolio As at March 31, 2016, residential mortgages, recorded on the of $7.6 billion balance sheet, Company’s (December 31, 2015 – $7.4 billion) consisted of $7.0 billion sold to securitization programs (December 31, 2015 – $7.0 billion), $577.9 million held pending sale or securitization (December 31, 2015 – $384.2 million) and $29.0 million related to the Company’s intermediary operations (December 31, 2015 – $27.7 million). credit risk related to residential manages The Company mortgages through: • Adhering to its lending policy and underwriting standards; • Its loan servicing capabilities; • of client-insured mortgage default insurance and Use • Its practice of originating its mortgages exclusively through its In certain instances, credit risk is also limited by the terms and nature of securitization transactions as described below: • Under the NHA MBS program totalling $4.6 billion Cash and Cash Equivalents At March 31, equivalents of $607.2 million 2016, cash and cash (December 31, – $983.0 million) 2015 of cash consisted balances of $44.7 million (December 31, – $105.4 million) 2015 chartered banks and cash equivalents on deposit with Canadian of $562.5 million (December 31, 2015 – $877.6 million). comprised primarily of Government of Cash equivalents are totalling $64.0 millionCanada treasury bills (December 31, 2015 – $132.2 million), and government provincial government paper of $226.9 millionguaranteed commercial (December 31, 2015 – $446.6 million) acceptances issued by and bankers’ of $251.6 millionCanadian chartered banks (December 31, 2015 – $298.8 million). and cash manages credit risk related to cash The Company that outlines equivalents by adhering to its Investment Policy The Company credit risk parameters and concentration limits. The regularly reviews the credit ratings of its counterparties. financialmaximum exposure to credit risk on these instruments is their carrying value. to and management of credit risk exposure The Company’s related to cash and cash equivalents and fixed income securities have not changed materially since December 31, 2015. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 3 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M G I _ CREDIT RISK CREDIT RISK Credit risk is the potential for financial loss to the Company if a Credit risk is the potential for financial to the Company loss counterparty to a transaction fails to meet its obligations. cash and cash equivalents, securities holdings, The Company’s mortgage portfolios, and derivatives are subject to credit risk. monitors its credit risk management practices on The Company an ongoing basis to evaluate their effectiveness. uncommitted lines of $175 millionuncommitted (December 31, 2015 – $175 million). its uncommitted lines has accessed Company The by a bank any advances made the past; however, of credit in sole credit are at the bank’s lines of under the uncommitted discretion. As at March 31, 2016 and December 31, the 2015, of credit or its was not utilizing its committed lines Company credit. uncommitted lines of for funding purposes related to the The actuarial valuation registered defined benefitCompany’s plan, based on pension of December 31,a measurement date 2013, was completed the actuarial valuation, the registered in May 2014. Based on deficitpension plan had a solvency of $23.4 million compared to $106.3 million actuarial valuation, which in the previous date of December 31,was based on a measurement 2012. The reduction in solvency deficit resulted primarily from higher returns on the plan assets, and is interest rates and market has made required to be funded over five years. The Company contributions of $3.2 million in 2016 (2015 – $3.2 million). contributions of approximately make expects to The Company $19.3 million in 2016. Pension contribution decisions are by many factors subject to change, as contributions are affected performance, regulatory requirements, changes including market change funding in assumptions and management’s ability to will be based on a policy. The next required actuarial valuation measurement date of December 31, 2016. available Management believes cash flows from operations, described above are cash balances and other sources of liquidity liquidity needs. The Company sufficient the Company’s to meet cash continues to have the ability to meet its operational and its declared flow requirements, its contractual obligations, is to declare dividends. The current practice of the Company on a quarterly basis and pay dividends to common shareholders of Directors. The declaration of at the discretion of the Board on a variety dividends by the Board of Directors is dependent of factors, including earnings which are significantly influenced performance has on by the impact that debt and equity market fee income and commission and certain other the Company’s liquidity position and its management expenses. The Company’s of liquidity and funding risk have not changed materially since December 31, 2015. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D33 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D34 C C 36

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U IGM FINANCIAL INC. A T 1 _ it utilizes to hedge interest rate risk, to facilitate securitization it utilizestohedgeinterestraterisk,facilitatesecuritization The Company isexposedtocreditriskthroughderivativecontracts Derivatives 2015. since December 31, related tomortgageportfolioshavenotchangedmaterially The Company’s exposuretoandmanagementofcreditrisk adverse realestatemarket conditions. characteristics, andiii)regularstresstestingoflossesunder trends, ii)currentportfoliocreditmetricsandotherrelevant on: i)historicalcreditperformanceexperienceandrecent all credit-relatedlossesinthemortgageportfoliosbased 2015, andisconsideredadequatebymanagementtoabsorb 2016,unchangedfromDecember 31, atMarch 31, $0.7 million The Company’s collectiveallowanceforcreditlosses was and theadequacyofcollectiveallowanceforcreditlosses. The Company regularlyreviewsthecreditqualityofmortgages ownership associatedwiththeseloans. has transferredsubstantiallyalloftherisksandrewards not recordedontheCompany’s balancesheetastheCompany thefunds.Theseloansare in certaincircumstancesbenefiting Bond Fund throughanagreementtorepurchasemortgages Term IncomeFund andtotheInvestorsCanadianCorporate mortgage loanssoldtotheInvestorsMortgageandShort The Company alsoretainscertainelementsofcreditriskon 2015. atDecember 31, $1.4 million 2016,comparedto atMarch 31, portfolios were$1.5 million Uninsured non-performingmortgagesover90daysonthese 2015. atDecember 31, comparedto$2.9 million $2.4 million, 2016,impairedmortgagesontheseportfolioswere March 31, 2015–76.8%).Asat sheet were76.3%insured(December 31, 2016,residentialmortgagesrecordedonbalance At March 31, Creditriskformortgagessecuritizedbytransfertobank- • IGM FINANCIALINC. FIRST E n g 2015 –36.6%). held inABCPTrusts 2016(December 31, insuredatMarch 31, risk isfurthermitigatedbyinsurancewith35.2%ofmortgages sheet andwillberecordedoverthelifeofmortgages.This to futurenetinterestincomear accounts arereflectedon 2016.Cashreserve respectively,atMarch 31, – $38.9 million), 2015 (December 31, and$40.0 million 2015 –$47.7 million) (December 31, the fairvaluesofwhichwere$49.7 million held incashreserveaccounts islimitedtoamounts 2015–$2.4 billion) (December 31, sponsored securitizationtruststotalling$2.4 billion 100% oftheloansareinsuredbyanapprovedinsurer. borrower. However, asrequiredbytheNHAMBSprogram, of whethersuchpaymentswerereceivedfromthemortgage 0 4 _ D I G M 34 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 3 4 the balancesheet,whereasrights and futurenetinterestincome, e notreflectedonthebalance MANAGEMENT’S DISCUSSIONANDANALYSIS Interest Rate Risk Rate Interest TheCompany hasincertaininstancesfundedfloatingrate • swaps withCanadianScheduleIcharteredbanksasfollows: mortgage bankingoperationsbyenteringintointerestrate The Company managesinterestrateriskassociatedwithits used intheCompany’s mortgagebankingoperations. instruments portfolio andoncertainofthederivativefinancial The Company isexposedtointerestrateriskonitsmortgage changes inforeignexchangerates. exposure to in Canadiandollarsanddonothavesignificant Company’s instrumentsaregenerallydenominated financial in foreignexchangerates,interestratesorequityprices.The instrumentsduetochanges changes inthevaluesofitsfinancial Market riskisthepotentialforlosstoCompany from 21 totheAnnualFinancialStatements. Note 4oftheInterimFinancialStatementsandNotes2,6 activities andutilizationofderivativecontractscanbefoundin Additional informationrelatedtotheCompany’s securitization 2015. materially sinceDecember 31, Management ofcreditriskrelatedtoderivativeshasnotchanged 2016. atMarch 31, risk relatedtoderivativeswasnotsignificant management hasdeterminedthattheCompany’s overallcredit are allCanadianScheduleIcharteredbanksand,asaresult, Counterparties 2015–$1.0 million). 2016 (December 31, atMarch 31, to futurenetinterestincome,was$4.5 million agreements andcollateralarrangementsincludingrights arrangements. Theexposuretocreditrisk,consideringnetting does notgiveeffecttoanynettingagreementsorcollateral 2015–$58.4 million) (December 31, position of$66.4 million credit riskexposurerelatedtoderivativesthatareinagain other parameterstomanagecounterpartyrisk.Theaggregate with itsInvestmentPolicywhichincludescounterpartylimitsand The Company’s derivativeactivitiesaremanagedinaccordance arrangements. theirobligationsunderthese its counterpartiesfailtofulfil gain position,theCompany isexposedtocreditriskthat To theextentthatfairvalueofderivativesisina discussed morefullyundertheMarket RisksectionofthisMD&A. based compensationarrangements.Thesederivativesare transactions, andtohedgemarket riskrelatedtocertainstock- MARKET RISK investment returnsonreinvestedmortgageprincipalandis Company ispartytoaswapwherebyitentitled toreceive As previouslydiscussed,aspartoftheCMBProgram, of thesecuritizationtransactionsunderCMBProgram. rateCanadaMortgageBonds aspart mortgages withfixed 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 37 1 1 - 5 0 - 6 116-05-11 3:11 PM 35 D 3.3 3.1 1.5 % 8.4 1.7 % 8.5 23.2 29.4 34.2 24.0 29.0 33.7 63.1 % 24.1 12.8 63.8 % 23.7 12.5 100.0 % 100.0 % 100.0 % 100.0 % MANAGEMENT’S DISCUSSION AND ANALYSIS ASSETS UNDER MANAGEMENT QUARTER REPORT 2016 / / QUARTER REPORT 2016 RISKS RELATED TO RISKS RELATED At March 31, 2016, IGM Financial’s total assets under management were $132.9 billion compared to $133.6 billion at December 31, 2015. primary sources of revenues are management, The Company’s as an annual administration and other fees which are applied As a result, percentage of the level of assets under management. revenues and earnings are indirectly the level of the Company’s exposed to a number of financial risks that affect the value of basis. These include assets under management on an ongoing changes in equity prices, interest rates and risks, like market on debt securities, foreign exchange rates, as well as credit risk within our loans and credit exposures from other counterparties client portfolios. Equity Price Risk risk on its proprietary is exposed to equity price The Company funds which are classifiedinvestment available for sale as securities and proprietary investment securities and on its equity funds which are classified as fair value through profit or loss. investment funds and equity The fair value of the proprietary was $64.9 millionsecurity investments at March 31, 2016 15. (December 31, 2015 – $50.8 million), as shown in Table compensation sponsors a number of deferred The Company where payments to participants arrangements for employees performance of the common to the are deferred and linked its exposure hedges Inc. The Company shares of IGM Financial use of forward agreements and total to this risk through the return swaps. MUTUAL FUNDS TOTAL FUNDS MUTUAL CONSOLIDATED FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. ASSET AND CURRENCY MIX POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 5 3 D

d d n i . 1 v _ 5 0 ASSETS UNDER MANAGEMENT – - 6 0 - 6 22: 1 0 2 _ M obligated to pay Canada Mortgage Bond coupons. This swap Bond coupons. This pay Canada Mortgage obligated to fair value of $52.5 millionhad a negative (December 31, 2015 $47.4 million)– negative notional amount and an outstanding of $923 million at March 31, 2016 (December 31, – 2015 $740 million).enters into interest rate swaps The Company I chartered banks to hedge the risk with Canadian Schedule earned on floating rate mortgages and that the interest rates decline. The fair value of these swaps reinvestment returns totalled $58.8 million (December 31, – $54.5 million), 2015 on amount of $2.1 billionan outstanding notional at March 31, 2016 (December 31, 2015 – $1.8 billion). value of The net fair these swaps of $6.3 million at March 31, 2016 (December 31, 2015 – $7.1 million) and have are recorded on balance sheet amount of $3.0 billionan outstanding notional (December 31, 2015 – $2.6 billion). committed interest rates may have on the value of mortgages long-term to or held pending sale or securitization to enters into interest rate funding sources. The Company rate risk related to funding swaps to hedge the interest pending sale or costs for mortgages held by the Company swaps totalled securitization. The negative fair value of these $0.1 million (December 31, 2015 – negative $0.1 million) on an outstanding notional amount of $138 million at March 31, 2016 (December 31, 2015 – $88 million). G I _ TABLE AS AT MARCH 31, 2016 MARCH 31, 2016 AS AT CAD Domestic equity Foreign equity Real Property USD Other Short-term fixed income and mortgages Other fixed income Cash • to the impact that changes in is exposed The Company As at March 31, 2016, the impact to annual net earnings of a have been a 100 basis point increase in interest rates would decrease of approximately $0.1 million (2015 – a decrease of $2.4 million). exposure to and management Company’s The since of interest rate risk have not changed materially December 31, 2015. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D35 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D36 C C 38

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U IGM FINANCIAL INC. A T 1 _ Internal AuditDepartment. the Company’s compliancedepartments,ERMDepartmentand ongoing evaluationoftheeffectivenesscontrolsisprovidedby through policiesandprocess Operational risksrelatingtopeopleandprocessesaremitigated operational risk. processes havebeendevelopedtosupportthemanagementof programs,policies,training,standardsandgovernance Specific day tooperationalrisksoftheirrespectivebusinessunits. The businessunitleadersareresponsibleformanagementofthe has averylowappetiteforriskinthisarea. operational riskmanagementandinternalcontrol.TheCompany The Company’s riskmanagementframeworkemphasizes harm orregulatoryactions. loss,reputational financial The impactcanresultinsignificant assets, andinadequateapplicationofinternalcontrolprocesses. modelsandvaluations,fraudmisappropriationof financial and systemfailures,errors relatingtotransactionprocessing, operational risks,includinginformationtechnologysecurity OurCompanyidentified. isexposedtoabroadrangeof other risksoftheCompany andmaynotalwaysbeseparately tomeasure,giventhatitformspartof risk canbedifficult processes inplacetomanageotherrisks.Asaresult,operational Operational riskaffectsallbusinessactivities,includingthe external events,butexcludesbusinessrisk. or failedinternalprocessessystems,humaninteraction Operational riskistheoflossresultingfrominadequate activities suchashedginginrelationtotheseexposures. expectations, andgenerallyitdoesnotengageinrisktransfer to theCompany’s resultsandconsistentwithstakeholder exposure toinvestmentreturnsonitsclientportfoliosisbeneficial markets.financial TheCompany believesthatoverthelongterm, management, revenues,earningsandcashflowtochangesin The Company regularlyreviewsthesensitivityofitsassetsunder geographic region,industrysector, investmentteamandstyle. byassetclass, under managementarebroadlydiversified management alignsitwiththeexperienceofitsclients.Assets The Company’s exposuretothevalueofassetsunder rates associatedwithdifferentassetclassesandmandates. result inlowerrevenuesdependinguponthemanagementfee incomeinstruments,whichcould between equityandfixed in thecompositionofCompany’s assetsundermanagement marketChanging financial conditionsmayalsoleadtoachange IGM FINANCIALINC. FIRST OPERATIONAL RISK RISK OPERATIONAL 2) E n g 0 4 _ D I G M 36 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 3 6 controls. Oversightofrisksand MANAGEMENT’S DISCUSSIONANDANALYSIS or contractual agreements. unexpected losses,andwhereitisrequiredbylaw,regulators that isappropriate toprovideadequateprotectionagainst assesses anddeterminesthenatureextentofinsurance The Company hasaninsurancer disruption. critical operationsandprocessesintheeventofabusiness to supportthesustainment,managementandrecoveryof The Company hasabusinesscontinuitymanagementprogram detect, respondtoandmanagecybersecuritythreats. monitor andenhanceitsdefences scrutiny orreputationaldamage.TheCompany continuesto consequences includinglostrevenue,litigation,regulatory of clientsorotherstakeholders, andcouldresultinnegative informationandthat attack couldcompromiseconfidential sophistication ofcyberattacksinthemarketplace. Suchan exposed torisksrelatingcybersecurityandtheincreasing advisorexperience.Asaresult,weare the clientandfinancial systems andtechnologytosupportitsbusinessoperations industry andourCompany’s operations.TheCompany uses risktoour management. Informationsecurityisasignificant controls overtechnologydevelopmentandchange Operational risksdrivenbysystemsaremanagedthrough consolidated financial position. consolidated financial the modelscouldhaveanadverseeffectonCompany’s changes intheinternalassumptionsorotherfactorsaffecting implementation andapplicationofthesemodels.However, market prices.Effectivecontrolsexistoverthedevelopment, internal assumptions,observablemarket inputsandavailable assessment ofpotentialacquisitions.Thesemodelsincorporate testing, managementofcashflows,capitalmanagement,and instruments,operationalscenario valuation offinancial The Company usesavarietyofmodelstoassistin:the requirements ofself-regulatoryorganizationstowhichthey The Company anditssubsidiariesarealsosubjecttothe in CanadawhichregulatetheCompany anditsactivities. agencies ofthefederal,provincialandterritorialgovernments and regulatoryrequirements, IGM Financialissubjecttocomplexandchanginglegal,taxation reporting andcommunications. management compliance,accounting requirements. Thisincludesdistributioncompliance,investment complying withlaws,contractualagreementsorregulatory Legal andRegulatory Compliance Riskistheriskofnot LEGAL ANDREGULATORY COMPLIANCE MODEL RISK including therequirementsof eview processwhereit and internalcontrols, procedures toprevent, 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 39 1 1 - 5 0 - 6 116-05-11 3:11 PM 37 D MANAGEMENT’S DISCUSSION AND ANALYSIS believe that sound corporate governance QUARTER REPORT 2016 / / QUARTER REPORT 2016 ACQUISITION RISK ACQUISITION 3) GOVERNANCE, OVERSIGHT AND STRATEGIC RISK outcome of any such legal actions, based on current knowledge based on current any such legal actions, outcome of not management does with legal counsel, and consultation or in these matters, individually of any of outcome expect the effect on the Company’s to have a material adverse aggregate, consolidated financial position. The Company is also exposed to risks related to its acquisitions. The Company thorough due diligence prior to undertakes The Company completing an acquisition, but there is no assurance that the will achieve the expected strategic objectives or cost Company and revenue synergies subsequent to an acquisition. Subsequent changes in the economic environment and other unanticipated ability to achieve expected factors may affect the Company’s earnings growth or expense reductions. The success of an acquisition is dependent on retaining assets under management, employees of an acquired company. clients, and key Governance, oversight and strategic risk is the risk of potential Governance, oversight from inadequate or inappropriate adverse impacts resulting management of incentives and conflicts, governance, oversight, and strategic planning. in the importance of good corporateIGM Financial believes role played by directors in thegovernance and the central governance process. We and its shareholders.is essential to the well being of the Company of the Board Oversight of IGM Financial is performed by and through its seven committees. The Directors directly and Chief Executive two Co-Presidents previously had Company Officers responsible for the management of the Company. Chief Executive Effective May 6, 2016, a sole President and Officerof IGM Financial has been named. The Company’s operating activities are carried out principally by three Financial companies – Investors Group Inc., Mackenzie Inc. – each of and Investment Planning Counsel Corporation Executive Officer. which are managed by a President and Chief planning process that supports has a business The Company by the Board development of an annual business plan, approved for the and targets of Directors, which incorporates objectives of management compensation are Components Company. and other targets associated with the achievement of earnings plans and direction objectives associated with the plan. Strategic into the are part of this planning process and are integrated risk management program. Company’s FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ols. The Company has a number ols. The Company of compliance. The monitoring of departments responsible for providing 7 3 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M G I _ CONTINGENCIES The Company is subject to legal actions arising in the normal The Company course of its business. Although it is difficult to predict the belong. These and other regulatory bodies regularly adopt new bodies regularly adopt and other regulatory belong. These Company that apply to the regulations and policies laws, rules, that apply include those These requirements and its subsidiaries. that company and those as a publicly traded to IGM Financial of their subsidiaries based on the nature apply to the Company’s regulations related to securities markets, activities. They include the provision of financial products and services, including fund insurance and mortgages, and other management, distribution, in which in the markets the Company activities carried on by and affecting the Company standards it operates. Regulatory the financial industry are significant services and are being are and its subsidiaries The Company continually changed. reviews as part of the normal ongoing subject to regulatory the various regulators. process of oversight by to comply with laws, rules or regulations could lead to Failure have an adverse regulatory sanctions and civil liability, and may The Company reputational or financial effect on the Company. risk through its efforts manages legal and regulatory compliance to promote a strong culture on the Company regulatory developments and their impact chaired Initiatives Committee is overseen by the Regulatory Affairs. It also continues Regulatory by the Vice-President, processes and to develop and maintain compliance policies, oversight, including specific communications on compliance and and reporting. The legal matters, training, testing, monitoring receives regular reporting on of the Company Audit Committee compliance initiatives and issues. ethics and integrity IGM Financial promotes a strong culture of approved by the Board of Directors, of Conduct through its Code to all IGM which outlines standards of conduct that apply of Conduct Financial directors, officers and employees. The Code conduct of directors, incorporates many policies relating to the officers and employees, and covers a variety of relevant topics, Individuals subject such as anti-money laundering and privacy. attest annually that they understand the of Conduct to the Code requirements and have complied with its provisions. Business units are responsible for management of legal and regulatory compliance risk, and implementing appropriate policies, procedures and contr of different compliance oversight of investment management and distribution-related compliance activities. The Internal Audit Department also provides oversight and investigations concerning regulatory compliance matters. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D37 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D38 C C 40

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U IGM FINANCIAL INC. A T 1 _ Cost andCompensation Disclosure–Dealersmustalso • PerformanceandRateofReturn Reporting –Dealersmust • 2016 andcomprisethefollowing: effective forannualperiodscommencingnolaterthanJuly15, rules thataretothesameeffect).Thesenewrequirements the MutualFund DealersAssociationofCanadahaveadopted Investment IndustryRegulatory OrganizationofCanadaand with them,includingthecompensationpaidtodealer(the performance oftheirinvestmentsandthecostsassociated to providetheirclientswithenhancedinformationonthe Model (CRM2)thatwillrequiredealers,amongotherthings, adopted anewsetofrulesasPhase2theClientRelationship In March2013,theCanadianSecuritiesAdministrators(CSA) productsorservicesislimited. treatment offinancial subsidiaries tomitigatetheimpositionofdifferentialregulatory discuss themwithregulators,theabilityofCompany andits monitor suchinitiatives,andwherefeasiblecommentuponor compensation. WhiletheCompany anditssubsidiariesactively also impactproductstructures,pricing,anddealeradvisor or applicationofregulation.Regulatory developmentsmay other differencesthatmaybeasaresultofdifferingregulation treatment, disclosurerequir of theCompany’s productsincluderegulatorycosts,tax Regulatory differencesthatmayimpactthecompetitiveness providers, tothirdpartydistributionchannelsandclients. service be lesscompetitivethantheproductsofotherfinancial of makingtheproductsCompany’s subsidiariesappearto Company. Particular regulatoryinitiativesmayhavetheeffect and regulationthatcouldhaveanadverseimpactonthe The Company isexposedtotheriskofchangesinlaws,taxation impact upontheCompany’s results. businessactivitiesorfinancial regulatory, legal,ortaxrequirementsthatmayhaveanadverse Regulatory developmentriskisthepotentialforchangesto IGM FINANCIALINC. FIRST 4) REGULATORY DEVELOPMENTS DEVELOPMENTS REGULATORY 4) CLIENT RELATIONSHIP MODEL E n g provide clientswithanannualreportonallcharges withdraw funds. to save,invest,transferbetweendifferentinvestmentsand provides ahelpfulviewoftheresultsclients’manydecisions are properlyreflectedintherateofreturncalculations.This that clientcashflowsto,from,andwithintheiraccounts is onethattheCompany supports.Thisapproachensures and investments.Thisprescribedcalculationmethodology cashflows intoandoutoftheaccountallunderlyingfunds weighted methodologywhichtakes intoconsiderationall each ofaclient’saccounts.Therulemandatesusedollar- information, includingpercentagerateofreturnresults,on provide clientswithannualmultiple-periodperformance 0 4 _ D I G M 38 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 3 ements, transactionprocessesor 8 AND POINTOFSALE MANAGEMENT’S DISCUSSIONANDANALYSIS evidence thatcommission-basedcompensationcreates compensation affectadviceandoutc the developmentofnewcompensationpolicies.Allforms the impactofcompensationisconclusiveenoughtojustify the key conclusionsfromthe of thiscomprehensiveresear percentage ofclientassets.OnJune11,2015,theresults fee chargedtotheclientaccountandexpressedasanannual paid directly bytheclient, whichoftenoccursasanadvisory compensation inthiscontextmeansdealeris by theproductmanageronanongoingbasis.Fee-based ratio andtrailerfeesbasedonassetsarepaidtothedealer embedded withinthemutualfundmanagementexpense is paidonatransactionandwheredealercompensation means arrangementswhereamutualfundsalescommission long term.Commission-based compensationinthiscontext the natureofadviceandinvestmentoutcomesover fee-based versuscommission-basedcompensationchanges to evaluateexistingliteratureanddetermineiftheuseof two researchprojects.The to Canada’s mutualfundfeestructuresandcommissioned The CSAhasbeenreviewingand project formutualfunds. staged approachtoimplementationofthepointsale(POS) for thepurchaseofamutualfund.ThisconcludesCSA’s delivered bydealerstoclientsbeforeacceptinganinstruction Effective May30,2016,Fund Facts willberequiredto this initiative. closed onMarch 10,2016.TheCompany willcloselymonitor respect ofexpandingtherequirements.Thecommentperiod issues raised.TheMFDAhasnotformulatedapositionin in natureandintendedtopromotefurtherdialogueonthe and shorttermtradingfees.Thisconsultationispreliminary such asmanagementfees,operatingcosts,redemptionfees owning investmentfundsthatarenotpaidtothedealer, disclosure introducedbyCRM2toincludeothercostsof feedback inrespectofexpandingthecostandcompensation of Canada(MFDA)publishedaconsultationbulletinseeking On December18,2015,theMutualFund DealersAssociation MUTUAL FUNDFEESAND management costs. Performance (MRFP)relatedtodistributionandfund through Fund Facts andtheManagementReport ofFund existing disclosureincludinginformationalreadyprovided information toourclientsandwillbuildonalreadyrequired account. Thesenewrequirementswillprovideimportant compensation thatthedealerreceivesrelatedtoaclient’s associated withtheiraccounts,includingdirectandindirect Brondesbury Groupwasretained ch weremadepublic.Oneof BESTINTERESTSTANDARDS research was:“Evidence on conducting researchrelated omes. Thereisconclusive 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 41 1 1 - 5 0 - 6 116-05-11 3:11 PM 39 D ecting a reference to MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 COOPERATIVE CAPITAL MARKETS REGULATORY SYSTEM MARKETS REGULATORY CAPITAL COOPERATIVE 5) BUSINESS RISK GENERAL BUSINESS CONDITIONS on the appropriateness of introducing a statutory best interest a statutory best of introducing on the appropriateness its active will continue The Company 2012. October, standard in regulators on this subject. engagement with dialogue and the Quebec Court of Appeal. The remaining provinces and the Quebec Court cooperative system territories have also not chosen to join the the Regulations with earlier announcements, to date. Consistent so far under substantially maintain the harmonization achieved of securities laws by adopting the national system the current current form. The and multilateral instruments, largely, in their closed on Regulations comment period for the revised CMA and is continuing to monitor this December 23, 2015. The Company initiative and the potential effect it will have on its activities and those of its subsidiaries, particularly in the area of the regulation of mutual funds. In 2013, the Government of Canada, as part of its Economic In 2013, the Government an intention to establish a common Action Plan, indicated working markets capital Canada’s securities regulator for provinces and territories. In September cooperatively with the of Canada and participating provincial 2014, the Government two proposed pieces of legislation to jurisdictions published system, regulatory capital markets implement the cooperative Act and the Capital Capital Markets namely the Provincial Stability Act. Markets draft of the On August 25, 2015, a revised consultation Act (CMA) along with accompanying Provincial Capital Markets proposed initial commentary was published, along with certain would The CMA and Regulations draft regulations (Regulations). laws together constitute the single set of provincial/territorial legislation under replacing provincial and territorial securities regulatory system in the proposed cooperative capital markets Saskatchewan, the six jurisdictions (Ontario, British Columbia, which Yukon) New Brunswick, Prince Edward Island and opposition from have currently agreed to participate. Of note, and the Quebec Quebec, Alberta and Manitoba remains strong of the cooperative government has now challenged the validity regulatory system dir capital markets General Business Conditions Risk refers to the potential for an General Business Conditions unfavourable impact on IGM Financial resulting from competitive or other external factors relating to the marketplace. Global economic conditions, changes in equity markets, demographics and other factors including political and government instability, can affect investor confidence, income levels and savings decisions. This could result in reduced sales of IGM Financial’s products and services and/or result in investors FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 9 3 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M G I _ problems that must be addressed. Fee-based compensation Fee-based compensation must be addressed. problems that is not enough evidence but there a better alternative, is likely lead to better long-term certainty that it will to state with also identifiesfor investors.” The report outcomes in the gaps that fillingresearch and suggests improve these gaps would compensation practices. One of the policy formulation regarding states: “In our view, no empirical studies report’s observations whether investors have greater have been done to document returns with fee-based compensation after-fee investment compensation.” The cautions instead of commission-based any research-based policy changes in this report will temper believes this research, one The Company considered by the CSA. and substantive reviews performed of the most comprehensive is a valuable contribution to the discussion globally on the topic, in the mutual surrounding appropriate forms of compensation fund and financial services industry. report of the On October 22, 2015, the CSA published the of historical mutual second research project which is an analysis influence mutual fund data to assess whether fee structures contained in the fund sales. There are no recommendations report, will be among report which, along with the Brondesbury CSA as part of its the various inputs to be considered by the communicate a policy review. The CSA has stated that it aims to direction sometime in 2016. whether The CSA also continues to review and consider when advice is the introduction of a best interest standard and if so, provided to retail clients is required and feasible, the most efficient way to implement such a standard. On 33-404 Paper April 28, 2016, the CSA published Consultation Dealers and Proposals to Enhance the Obligations of Advisers, Paper), Their Clients (the Consultation Toward Representatives 26, 2016. The with the comment period closing on August is the result of continuing CSA consultations Paper Consultation clients and registrants. and research on the relationship between proposes a set of targeted reforms Paper The Consultation which all CSA jurisdictions are consulting on and also describes a potential regulatory best interest standard. The Consultation indicates that only the Ontario Securities Commission Paper of New Services Commission and the Financial and Consumer Brunswick are supportive of the introduction of a best interest is of the Securities Commission standard. In addition, the B.C. view that implementing only the proposed targeted reforms will advance the best interests of Paper in the Consultation investors, and that imposing an over-arching best interest standard may not be workable, and will create uncertainty for registrants. The securities commissions in Quebec, Alberta, Manitoba, and Nova Scotia have expressed strong reservations but will review the comments that are received. This paper initial consultation paper follows the publication of the CSA’s 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D39 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D40 C C 42

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U IGM FINANCIAL INC. A T 1 _ Counsel Mackenzie Investors Group IGM FinancialInc. competitiveness inthemarketplace. respective productandserviceoffering,pricing,toensure The Company’s subsidiariesalsocontinuallyreviewtheir products, withafocusonbuildingenduringrelationships. level ofserviceandsupportabroadrangeinvestment advisors, aswellretailandinstitutionalclientswithahigh The Company providesConsultants, independentfinancial Landscape sectionofthisMD&Aforafurtherdiscussion. position andoperatingresults.PleaserefertoTheCompetitive could haveanadverseimpactupontheCompany’s financial reputation andactionstaken bycompetitors.Thiscompetition relative servicelevels,pricing,productattributes, factors, includingproductsandservicesofferedbycompetitors, development andretentioncanbeinfluencedbyanumberof investment managersandproductservicetypes.Client serviceproviders, environment, competingwithotherfinancial IGM Financialanditssubsidiariesoperateinahighlycompetitive quality orbreadth. resulting frominadequatepr There ispotentialforunfavourableimpactsonIGMFinancial Mackenzie SegmentOperatingResults sectionsofthisMD&A. Table 23 andarediscussedintheInvestorsGroup Redemption ratesforlong-termfundsaresummarized in maintaining perspectiveandfocusontheirlong-termobjectives. advisorsplayakeyfinancial roleinassistinginvestors investing. InperiodsofvolatilityConsultants andindependent andlong-term planning,diversification on themeritsoffinancial industry continuetotake stepstoeducateCanadianinvestors planningacrosseconomiccycles.TheCompanyfinancial andthe communicating withclientsandemphasizingtheimportanceof The Company, acrossitsoperatingsubsidiaries,isfocusedon Related toAssetsUnderManagementsectionofthisMD&A. under management,asdescribedmorefullytheRisks marketslevel offinancial andthevalueofCompany’s assets redeeming theirinvestments.Thesefactorsmayalsoaffectthe IGM FINANCIALINC. FIRST TABLE PRODUCT/SERVICE OFFERING E n g 0 4 _ D I G 23: M 40 _ 2 0 TWELVE MONTHTRAILINGREDEMPTIONRATE 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 4 0 oduct orserviceperformance, MANAGEMENT’S DISCUSSIONANDANALYSIS FORLONG-TERMFUNDS 2016 MAR. 2015 31 MAR. 31 and incompetitionwithMackenzie. Mackenzie alsoderives generally offertheirclientsinvestmentproductsinadditionto, advisors.Financialadvisors sales throughthirdpartyfinancial Mackenzie of thisMD&A. discussed intheInvestorsGroupReview oftheBusinesssection advice,as and servicesinthecontextofpersonalizedfinancial needs ofitsclientsbydeliveringadiverserangeproducts of Consultants andonrespondingtothecomplexfinancial Investors Groupisfocusedongrowingitsdistributionnetwork Investors Group’s resultsofoperationsandbusinessprospects. loss ofclientaccountswhichcouldhaveanadverseeffecton numberofkeyloss ofasignificant Consultants couldleadtothe The market advisorsisextremelycompetitive.The forfinancial inthatindividualConsultant.based ontheclient’sconfidence which canleadtoastrongandpersonalclientrelationship Group Consultants haveregulardirectcontactwithclients its mutualfundsalesthroughConsultant network.Investors Investors GroupConsultantnetwork Mackenzie funds,andsub-advisorsotherproductsuppliers. businesspartners,clientsof distribution, strategicandsignificant Investors Groupclientsandconsultants,Mackenzie retail to otherkey relationships.Theserelationshipsprimarilyinclude unfavourable impactsonIGMFinancialresultingfromchanges Business/Client relationshipsriskreferstothepotentialfor brand, assetclass,mandate,styleandgeographicregion. under managementandproductshelfbyinvestmentteam, competitive advantage,anddoessobydiversifyingitsassets investment processesanddisciplinesthatprovideitwitha the Company’s results.TheCompany’s objectiveistocultivate Meaningful and/orsustainedunderperformancecouldaffect and assetretention,aswelladverselyimpactourbrands. could reducethelevelofassetsundermanagementandsales investment performancerelativetobenchmarksorpeers on itsproductsrelativetobenchmarksandpeers.Poor The Company strivestodeliverstronginvestmentperformance BUSINESS/CLIENT RELATIONSHIPS – Mackenzie derivesthemajorityofitsmutualfund –InvestorsGroupderivesallof 47% 12.6% 14.4% 14.7 % 16.4 % . 8.5% 8.7 % 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 43 1 1 - 5 0 - 6 116-05-11 3:11 PM 41 D MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 our businesses, which includes management and operation of and operation which includes management our businesses, and business operations; or managed assets company-owned practices; and our procurement regulatory issues; and client demands for products and services.related trends to meet • of and operation associated with the ownership Direct risks • services we offer risks as a result of the products and Indirect • Identification of emerging environmental and management • and appropriately leverage environment to understand Failure commitment to responsible IGM Financial has a long-standing Corporate in the Company’s management, as articulated as approved by the Board of Statement Responsibility us to responsibly manage our Directors which commits environmental footprint. to adequately manage environmental risks could Failure adversely impact our results or our reputation. the across IGM Financial manages environmental risks having responsibility with business unit management Company, for identifying, assessing, controlling and monitoring IGM environmental risks pertaining to their operations. Responsibility Financial’s Executive Management Corporate to environmental oversees its commitment Committee responsibility and risk management. are signatories to the Principles Investors Group and Mackenzie investors Investment (PRI). Under the PRI, for Responsible social and formally commit to incorporate environmental, processes. In governance (ESG) issues into their investment and Investment Planning addition, Investors Group, Mackenzie policies which provide have implemented investing Counsel at information on how these ESG issues are implemented each company. management IGM Financial reports on its environmental In Report. Responsibility and performance in its Corporate participates in the Carbon Disclosure addition, the Company Project (CDP) survey, which promotes corporate disclosures on greenhouse gas emissions and climate change management. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER ounts than in a retail relationship. ounts than in a retail 1 4 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M G I _ PEOPLE RISK PEOPLE RISK 6) ENVIRONMENTAL RISK People risk refers to the potential inability to attract or retain People risk refers to the potential inability develop to an appropriate level of employees or Consultants, key proficiency, or manage personnel succession or transition. personnel play an Management, investment and distribution managing and important role in developing, implementing, IGM Financial. The distributing products and services offered by retain and loss of these individuals or an inability to attract, motivate sufficient numbers of qualified affect personnel could IGM Financial’s business and financial performance. from environmental Environmental risk is the risk of loss resulting our operations. issues involving our business activities and of issues, such as Environmental risk covers a broad spectrum health, pollution, climate change, biodiversity and ecosystem waste and the unsustainable use of water and other resources. environmental risks to IGM Financial include: Key sales of its investment products and services from its strategic and services from its investment products sales of its the Due to the nature of institutional clients. alliance and relative relationships and the relationship in these distribution can be and redemption activity accounts, gross sale size of these these acc more pronounced in its investment products is highly market ability to Mackenzie’s access to these distribution networks. dependent on continued access could have a material adverse The inability to have such prospects. operating results and business effect on Mackenzie’s to manage this risk and to is well positioned Mackenzie enhance its distribution relationships. continue to build and of financial diverse portfolio products and its long- Mackenzie’s educational record, marketing, term investment performance one of Canada’s made Mackenzie and service support has These factors leading investment management companies. of the Business Review are discussed further in the Mackenzie section of this MD&A. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D41 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D42 C C 44

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U IGM FINANCIAL INC. A T 1 _ financial planningand investmentmanagementservices. financial integrated participants,similartoIGMFinancial,whoofferboth vertically- is characterizedbyanumberoflarge,diversified, servicesindustry shelf. Accordingly,theCanadianfinancial adviceimplementedthroughacc financial serviceprovidersstrivetooffercomprehensive of thesefinancial and insuranceagentsalesforceshavebecomeobscuredasmany bank branches,fullservicebrokerages, planningfirms financial proprietary productsandservices.Traditional distinctionsbetween serviceprovidersofferingacomprehensiverangeof financial Competition andtechnologyhavefosteredatrend towards most investorrequirements available inabroadrangeofmandatesandstructurestomeet professional management,flexibilityandconvenience,are ofdiversification, funds provideinvestorswiththebenefits to remainthepreferredsavingsvehicleofCanadians.Investment managers. Managementbelievesthatinvestmentfundsarelikely the Company isamongthecountry’slargestinvestmentfund inmutualfundassetsundermanagement, With $127 billion pooled funds,closedendfundsandexchangetradedfunds. product categoriesincludingsegregatedfunds,hedge funds arecomprisedofmutualfundproducts,withother such asstocksandbonds.Approximately77%ofinvestment Other assettypesincludedepositproductsanddirectsecurities assetclassheldbyCanadians. making itthelargestfinancial 2014, $1.4 trillionresidedininvestmentfundsatDecember 31, assetsor Approximately 40%ofCanadiandiscretionaryfinancial plansandgoals. remain focusedonlong-termfinancial the importanceofarelationshipwithanadvisortodevelopand Company adviceand activelypromotesthevalueoffinancial advisorscomparedtothosewhodonot.The use financial outcomesfor Canadians who betterfinancial significantly goals.Multiplesourcesofemergingresearchshow financial advisors astheyworkwithclientstoplanforandachievetheir of theCompany’s businessmodelistosupportthesefinancial the Company’s productsandservices,thecoreemphasis Financial advisorsrepresenttheprimarydistributionchannelfor consisted ofbankdeposits. advisoryrelationship,approximately61% outside ofafinancial longer-term savingsneedsofCanadians.Ofthe$1.2trillionheld advisor,a financial andthisistheprimarychannelserving assetsareheldwithinthecontextofarelationshipwith financial for retirementpurposes.Over65%($2.4trillion)ofthese cash managementpurposestolonger-terminvestments held was diverse,rangingfromdemanddepositsheldforshort-term recent reportfromInvestor 2014basedonthemost institutionsatDecember 31, financial assetswith Canadians held$3.6trillionindiscretionaryfinancial IGM FINANCIALINC. FIRST THE FINANCIALSERVICES ENVIRONMENT OUTLOOK E n g 0 4 _ D I G M 42 _ 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 4 Economics. Thenatureofholdings 2 and preferences. ess to a broad product ess toabroadproduct MANAGEMENT’S DISCUSSIONANDANALYSIS responses asappropriate. engages inpolicydiscussionsanddevelopsproductservice Company monitorsdevelopmentsonanongoingbasis,and structures, dealerandadvisorcompensationdisclosure.The and service offeringsof the Company, includingpricing,product or publicpreferencesc product typesordeliverychannels,andchangesinregulations Competition serviceproviders,alternative fromotherfinancial classes forashareoftheinvestmentassetsCanadians. and theirproductscompetewithstocks,bondsotherasset with otherinvestmentmanagersforassetsundermanagement, Mackenzie andInvestmentPlanningCounsel competedirectly brokerages, banksandinsurancecompanies.InvestorsGroup, aswellfullservice planningfirms, including otherfinancial compete directlywithotherr environment. InvestorsGroupandInvestmentPlanningCounsel IGM Financialanditssubsidiariesoperateinahighlycompetitive • Advancing and changing technology. Anevolvingcompetitive landscape. • Changesintheregulatoryenvironment. • Publicpolicyrelatedtoretirementsavings. • Continued advisor. importanceoftherolefinancial • Changesininvestorattitudesbasedoneconomicconditions. • ShiftingdemographicsasthenumberofCanadiansintheir • continue tobeinfluencedbythefollowingtrends: servicesindustrywill Management believesthatthefinancial participants areacquired consolidation inthissegmentoftheindustryassmaller 2016.Managementanticipatescontinuing at March 31, assets and69%oftotalmutualfundundermanagement subsidiaries representing69%ofindustrylong-termmutualfund andtheir to beveryconcentrated,withthetenlargestfirms Theindustrycontinues large, oftenvertically-integrated,firms. Canadian mutualfundmanagementindustryischaracterizedby As aresultofconsolidationactivityinthelastseveralyears, 2016. long-term mutualfundassetsatMarch 31, represented43%oftotalindustry firms managers andaffiliated mutual fundassetsofthe“bigsix”bank-owned one ormoremutualfundmanagementsubsidiaries.Collectively, and mutualfunds.Inaddition,eachofthe“bigsix”bankshas planning continue toplaceincreasedemphasisonbothfinancial full serviceanddiscountbrokerage subsidiaries.Bankbranches through theirtraditionalbankbranches,aswell productsandservices Canadian banksdistributefinancial THE COMPETITIVE LANDSCAPE prime savingsandretirement yearscontinuetoincrease. ould impactthecharacteristicsofproduct by largerorganizations. etail financial serviceproviders, etail financial 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 45 1 1 - 5 0 - 6 116-05-11 3:11 PM 43 D MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 BENEFITS OF BEING PART OF THE OF THE BENEFITS OF BEING PART POWER FINANCIAL GROUP OF COMPANIES BROAD PRODUCT CAPABILITIES BROAD PRODUCT ENDURING RELATIONSHIPS distribution through over 30,000 independent financial through over 30,000 distribution advisors. alliance business, in its growing strategic also, Mackenzie distribution manufacturing and Canadian and U.S. partners with of management to a number to provide investment complexes mandates. retail investment fund IGM Financial enjoys significantIGM Financial enjoys advantages as a result of that advisors enjoy with clients. In the enduring relationships have strong heritages and subsidiaries addition, the Company’s to replicate. cultures which are challenging for competitors IGM FinancialAs part of the Power Financial group of companies, benefits through expense savings from shared service arrangements, and capital. as well as through access to distribution, products IGM Financial’s subsidiaries continue to develop and launch IGM Financial’s subsidiaries strategic investment planning tools to innovative products and optimized portfolios for clients. assist advisors in building FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 4 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M channels emphasizing comprehensive financialchannels emphasizing planning with a financialthrough a relationship advisor. sub-advisory relationships. and cultures of its subsidiaries. of companies. G I _ BROAD AND DIVERSIFIED DISTRIBUTION IGM Financial’s distribution strength is a competitive advantage. IGM Financial’s distribution strength is a competitive largest financialIn addition to owning two of Canada’s planning Planning organizations, Investors Group and Investment access to has, through Mackenzie, IGM Financial Counsel, IGM Financial continues to focus on its commitment to provide on its commitment continues to focus IGM Financial financial and advice quality investment service products, long- and of the Company effective management innovations, believes Management for its clients and shareholders. term value is well-positioned to meet competitive that the Company on future opportunities. challenges and capitalize including: enjoys several competitive strengths, The Company • and diversified Broad distribution with an emphasis on those • quality product capabilities, leading brands and Broad • Enduring client relationships and the long-standing heritages • Benefits of being part of the Power Financial group 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D43 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D44 C C 46

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U IGM FINANCIAL INC. A T 1 _ Hedgeaccounting:Thisphasereplacesthecurrentrule-based • Impairmentmethodology:Thisphasereplaces thecurrent • andmeasurement:Thisphaserequiresthat Classification • was completedinthreeseparatephases: instruments.Thestandard standard foraccountingfinancial The IASBissuedIFRS9whichreplacesIAS39,thecurrent may haveontheCompany’s operations. (IASB) andanalyzestheeffectthatchangesinstandards proposed bytheInternationalAccountingStandardsBoard The Company continuouslymonitorsthepotentialchanges 2015. from thosereportedatDecember 31, There werenochangestotheCompany’s accountingpolicies 2015. December 31, related tocriticalaccountingestimatesfromthosereportedat There werenochangestotheCompany’s assumptions the Company’s reporting. internalcontroloverfinancial materially affected,orarereasonablylikely tomateriallyaffect, the Company’s reportingthathave internalcontroloverfinancial quarter of2016,therehavebeennochangesin During thefirst IGM FINANCIALINC. FIRST IFRS 9 FINANCIALINSTRUMENTS FUTURE ACCOUNTING CHANGES CHANGES INACCOUNTING POLICIES SUMMARY OFCRITICALACCOUNTING ESTIMATES INTERNAL CONTROL OVERFINANCIALREPORTING CRITICAL ACCOUNTING ESTIMATES ANDPOLICIES E n g management activities. that morecloselyalignstheaccountingwithanentity’srisk hedge accountingrequirementsinIAS39withguidance expected lossmodel. assetswithan incurred lossmodelforimpairmentoffinancial assets. characteristics ofthefinancial assetsandthecontractualcashflow managing thefinancial fair valueonthebasisofentity’sbusinessmodelfor ateitheramortized costor assetsbeclassified financial 0 4 _ D I G M 44 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / d d

D 4 4 MANAGEMENT’S DISCUSSIONANDANALYSIS the Company. Updateswillbeprovidedastheprojectsdevelop. will resultinchangestoexistingIFRSstandardsthatmayaffect The IASBiscurrentlyundertakinganumberofprojectswhich standard iscurrentlybeingassessed. periods beginningonorafterJanuary1,2019.Theimpactofthis requirements. Thestandardiseffectiveforannualreporting 12 months)andlow-valueassetleasesareexemptfromthese use assetandinterestontheleaseliability.Short-term(lessthan recognizes therelatedexpenseasdepreciationonright-of- its obligationtomake leasepaymentsforallleases.Alessee leased assetandacorrespondingleaseliabilityrepresenting right-of-use assetrepresentingitsrighttousetheunderlying The IASBissuedIFRS16whichrequiresalesseetorecognize currently beingassessed. on orafterJanuary1,2018andtheimpactofstandardis This standardiseffectiveforannualreportingperiodsbeginning customer inanamountthatreflectstheexpectedconsideration. recognize revenueasthegoodsor contracts withcustomers.Themodelrequiresanentityto model forentitiestouseinaccountingrevenuearisingfrom The IASBissuedIFRS15whichoutlinesasinglecomprehensive currently beingassessed. on orafterJanuary1,2018andtheimpactofstandardis This standardiseffectiveforannualreportingperiodsbeginning OTHER IFRS 16 LEASES IFRS 15 REVENUEFROM CONTRACTS WITHCUSTOMERS services aretransferredtothe 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 47 1 1 - 5 0 - 6 116-05-11 3:11 PM 45 D MANAGEMENT’S DISCUSSION AND ANALYSIS QUARTER REPORT 2016 / / QUARTER REPORT 2016 SEDAR OUTSTANDING SHARE DATA OUTSTANDING Additional information relating to IGM Financial, including Additional information relating to IGM Financial, financial most recent statements and Annual the Company’s Information Form, is available at www.sedar.com. Outstanding common shares of IGM Financial as at March 31,Outstanding common Outstanding stock options as at 2016 totalled 241,810,764. March 31, of which 3,996,381 were 2016 totalled 8,691,076, 3, 2016, outstanding common shares exercisable. As at May and outstanding stock options totalled totalled 241,193,050 were exercisable. 8,287,095, of which 3,981,598 of $150 millionPerpetual preferred shares as were outstanding at March 31, 3, 2016. 2016, unchanged at May For further information on transactions involving related involving related information on transactions For further Annual Financial Company’s Notes 8 and 25 to the parties, see Statements. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER debentures and related dividend 5 4 D

d d n i . 1 v _ 5 0 - 6 0 - 6 1 0 2 _ M of 4.51% preferred shares of a wholly-owned subsidiary of of 4.51% preferred shares As sole consideration for the Power Financial Corporation. $1.67 billion issued Company preferred shares, the of 4.50% to Power Financial Corporation. secured demand debentures settle these has legally enforceable rights to The Company intends financial the Company instruments on a net basis and to exercise these rights. subsidiary of of 4.51% preferred shares of a wholly-owned consideration for the As sole Power Financial Corporation. issued $0.33 billionpreferred shares, the Company of 4.50% Corporation. secured demand debentures to Power Financial enforceable rights to settle these has legally The Company intends financial on a net basis and the Company instruments to exercise these rights. G I _ OTHER INFORMATION OTHER TRANSACTIONS WITH RELATED PARTIES WITH RELATED TRANSACTIONS The Company entered into tax loss consolidation transactions consolidation transactions entered into tax loss The Company after Financial Corporation, company, Power with its parent rulings: obtaining advance tax • acquired $1.67 billion January 7, 2014, the Company On • acquired $0.33 billion January 6, 2015, the Company On The preferred shares and income and interest expense are offset in the Consolidated expense are offset in the Consolidated income and interest savings arise due to Tax Financial Statements of the Company. the tax deductibility of the interest expense. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D45 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D46 C C 48

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Average numberofcommonshares (See accompanyingnotestointerimcondensedconsolidatedfinancialstatements.) – Diluted – Basic Earnings pershare – Diluted – Basic Net earningsavailabletocommonshareholders Perpetual preferredsharedividends Net earnings Income taxes Earnings beforeincometaxes Interest Non-commission Commission Expenses Proportionateshareofaffiliate’searnings Netinvestmentincomeandother Distribution fees Administration fees Management fees Revenues (in thousandsofCanadiandollars,exceptsharesandpershareamounts) (unaudited) IGM FINANCIALINC. FIRST CONSOLIDATED STATEMENTS OFEARNINGS INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS E n g 0 4 _ D I G M

46 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016

6 - 0 6 - 0 5 (in dollars)(Note11) _ v 1 . i n QUARTER REPORT2016 / INTERIM d d

D 4 6 (in thousands)(Note11)

CONDENSEDCONSOLIDATEDFINANCIALSTATEMENTS

THREEMONTHSENDEDMARCH31 $ 166,963 $ 0.69 $ 0.69 169,176 261,515 $ 483,836 243,211 243,127 210,544 512,295 227,867 722,839 100,350 41,368 22,913 15,877 94,968 27,808 2,213 2016 $ 200,346 $ 55,065 22,750 29,081 94,533 $ 0.80 0.80 $ $ 251,421 251,211 2,213 202,559 257,624 503,239 213,622 266,867 760,863 102,236 509,111 $ 25,902 2015 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 49 1 1 - 5 0 - 6 116-05-11 3:11 PM 47 D (637) (6,516) (12,950) 2015 2015 (5,736) 3,208 $ 196,043 2,571 9,599 $ 202,559 (26) 520 494 2016 4,164 9,411 (8,099) $ 161,077

$ 169,176 (22,168) ENDED MARCH 31 THREE MONTHS CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER

QUARTER REPORT 2016 / INTERIM / QUARTER REPORT 2016 net of tax of $10 and $233

net of tax of $(756) and $(51) net of tax of nil IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. net of tax of $(193) and $(1,185) net of tax of $8,198 and $4,788 net of tax of $8,198 and POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER

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6 1 0 2 _ M G I _ CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME COMPREHENSIVE OF STATEMENTS CONSOLIDATED Available for sale securities sale (losses), for to Net earnings Items that may be reclassified subsequently gains Available unrealized Net losses to net earnings, Reclassification of realized (gains) Investment in affiliate and other and affiliate (loss), in income Investment comprehensive Other Comprehensive income

Other comprehensive income (loss), net of tax Other comprehensive (losses), benefits be reclassified to Net earnings Items that will not gains Employee actuarial Net (loss), income comprehensive Other and other in affiliate – employee benefits Investment financial statements.) (See accompanying notes to interim condensed consolidated Net earnings (unaudited) (in thousands of Canadian dollars)

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U IGM FINANCIAL INC. A T 1 _ (See accompanyingnotestointerimcondensedconsolidatedfinancialstatements.) Loans Incometaxesrecoverable Accountsandotherreceivables Securities Cashandcashequivalents Assets (in thousandsofCanadiandollars) (unaudited) These interimcondensedconsolidatedfinancialstatementswereapprovedandauthorizedforissuancebytheBoardofDirectorso Obligationstosecuritizationentities Other liabilities Deposits and Derivative certificates financial Income instruments Accountspayableandaccruedliabilities taxes payable Liabilities Goodwill Intangible assets Deferred income Deferred taxes selling Capital commissions assets Investment in Other affiliate assets Derivative financial instruments cuuae te opeesv noe(os Accumulatedothercomprehensive income (loss) Retained earnings Contributed surplus Common shares Perpetual preferred Share shares capital Shareholders’ Equity Long-term debt Deferred income taxes IGM FINANCIALINC. FIRST CONSOLIDATED SHEETS BALANCE E n g 0 4 _ D I G M

(Note 3) 48 _ 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0

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CONDENSEDCONSOLIDATEDFINANCIALSTATEMENTS

602,517 $ 607,170 $ 14,791,242 $ 350,009 $ 14,791,242 2,659,856 3,017,873 1,604,508 150,000 10,022,381 1,325,000 7,154,921

4,768,861 7,576,853 1,232,803 MARCH 31 485,925 300,915 741,571 148,313 930,465 320,465 (40,093) 32,818 64,922 58,425 26,721 71,792 55,797 66,365 36,573 2016 10,243 50,762 564,660 983,016 $ $ 14,831,081 4,848,396 7,392,448 57,836 53,267 64,946 54,926 58,364 449,018 310,074 386,727 $ $ 14,831,081 2,659,856 1,219,720 727,527 140,356 904,257 35,569 3,070,873 1,623,948 150,000 9,982,685 1,325,000 308,349 7,092,414 DECEMBER 31 2015 (31,994) n May6,2016. 116-05-11 3:11PM 6 - 0 5 - 1 1

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6 116-05-11 3:11 PM 49 D EQUITY (Note 8) INCOME (LOSS) INCOME (LOSS) SHAREHOLDERS’ CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31 SURPLUS EARNINGS EARNINGS SURPLUS (Note 5) FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER QUARTER REPORT 2016 / INTERIM / QUARTER REPORT 2016 SHARE CAPITAL SHARE ACCUMULATED ACCUMULATED

– – – (83,886) – (83,886) – – – – – – 169,176 – – – – – 169,176 (19,850) – 410 169,176 – (8,099) 161,077 – (8,099) – – (8,099) – – – – – – 1,026 – – (22) – – – (19,850) – – – (2,213) 410 – (136,077) – 1,026 – – – (136,077) (2,213) (22) CHANGES IN SHAREHOLDERS’ EQUITY IN SHAREHOLDERS’ CHANGES (Note 5) $ 150,000 $ 1,623,948 $ 35,569 $ 3,070,873 $ (31,994) $ 4,848,396 $ 3,070,873 $ (31,994) 1,623,948 $ 35,569 $ 150,000 $ $ $ 150,000 $ 1,604,508 $ 36,573 $ 3,017,873 $ (40,093) $ 4,768,861 $ 3,017,873 $ (40,093) 1,604,508 $ 36,573 $ 150,000 $ $ IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER

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d d – – – (61,073) – (61,073) – (61,073) – – –

n i . 1 v _ 5 0 - (Note 5) (Note 5) 6 0 - SHARES SHARES CONTRIBUTED RETAINED CONTRIBUTED SHARES SHARES 6 1 0 2 _ M G I _ CONSOLIDATED STATEMENTS OF STATEMENTS CONSOLIDATED PREFERRED COMMON COMPREHENSIVE TOTAL TOTAL COMPREHENSIVE OTHER COMMON PERPETUAL PREFERRED 2016 (unaudited) (in thousands of Canadian dollars) period Balance, beginning of

(See accompanying notes to interim condensed consolidated financial statements.) Balance, beginning of period of beginning 2015 4,840,879 $ Balance, (110,718) 3,112,512 $ $ 1,655,581 33,504 $ 150,000 $ $ Balance, end of period of end Balance, 4,836,895 $ (117,234) 3,110,844 $ $ 1,661,017 32,268 $ 150,000 $ $ Balance, end of period Other comprehensive income (loss), Other comprehensive income net of tax Common shares stock option plan Issued under Purchased for cancellation Exercised Comprehensive income expense Stock options period Current Perpetual preferred share dividends Common share dividends Common share cancellation excess and other Net earnings Perpetual preferred share dividends – – – (2,213) – (2,213) – (140,941) (2,213) – – – (140,941) earnings Net – Other comprehensive income (loss), dividends net of tax plan income option Comprehensive – stock share cancellation under dividends Common shares – for Issued expense Purchased – 14,608 preferred period – Stock options share Current Exercised – – – Perpetual – Common (9,172) – – – Common share cancellation excess and other – – – – – 202,559 202,559 14,608 – (6,516) 196,043 – – 1,134 – 202,559 – (9,172) – – – – 1,134 – – (2,370) – – – (2,370) (6,516) (6,516) 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D49 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D50 C C 52

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(See accompanyingnotestointerimcondensedconsolidatedfinancialstatements.) Interest paid Deferred selling Changesinoperatingassetsandliabilitiesother commissions paid Amortizationofcapitalandintangibleassets Deferred Adjustmentstodeterminenetcashfromoperatingactivities selling commission Incometaxespaid amortization Earningsbeforeincometaxes Operating activities (in thousandsofCanadiandollars) (unaudited) e dces)ices ndpst n etfcts Net(decrease)increaseindepositsandcertificates Financing activities e nrae(erae nolgtost euiiainette Perpetualpreferredsharedividendspaid Commonsharespurchasedforcancellation Issueofcommonshares Netincrease(decrease)inobligationstosecuritizationentities Commonsharedividendspaid Purchaseofsecurities Investing activities Netadditionstocapitalassets Net(increase)decreaseinloans Proceedsfromthesaleofsecurities e ahue nadtost nagbeast n custos Netcashusedinadditionstointangibleassetsandacquisitions Decrease incashandequivalents ahadcs qiaet,bgnigo eid Interestanddividendsreceived Supplemental disclosureofcashflowinformationrelatedtooperatingactivities Cash equivalents Cash Cash andcashequivalents,endofperiod Cash andcashequivalents,beginningofperiod IGM FINANCIALINC. FIRST CONSOLIDATED STATEMENTS OFCASH FLOWS E n g 0 4 _ D I G M

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CONDENSEDCONSOLIDATEDFINANCIALSTATEMENTS

THREEMONTHSENDEDMARCH31 $ 40,709 (77,914) $ 210,544

(104,337)

(187,829) (183,455)

$ 62,246 $ 607,170 $ 44,741 $ 607,170 (137,752) (227,676) (375,846) 113,494 562,429 983,016 (89,453) (73,835) (24,896) (17,003) (13,078) 10,526 59,791 39,659 65,244 10,756 (9,159) (2,213) 2016 388 $ 44,977 $ 216,486 257,624 $ 9,409 58,703 131,724 12,238 (61,671) 21,774 $ 63,751 $ $ 1,122,939 1,066,004 56,935 $ 1,215,980 $ 1,122,939 2015 (62,203) (47,047) (84,762) 29,171 (62,086) (2,213) (226,010) (141,449) 7,882 (9,964) (13,933) (4,514) 1,245 (93,041) 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 53 1 1 - 5 0 - 6 116-05-11 3:11 PM 51 D CONTRACTS WITH CUSTOMERS CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE INTERIM hedge accounting requirements in IAS 39 with guidance hedge accounting requirements in IAS 39 an entity’s risk that more closely aligns the accounting with management activities. IFRS 15 REVENUE FROM IFRS 16 LEASES The IASB issued IFRS 15 which outlines a single comprehensive The IASB issued IFRS 15 which outlines a single revenue arising model for entities to use in accounting for requires an entity from contracts with customers. The model are transferred to recognize revenue as the goods or services the expected to the customer in an amount that reflects annual reporting consideration. This standard is effective for and the impact periods beginning on or after January 1, 2018 of the being assessed. standard is currently to recognize a The IASB issued IFRS 16 which requires a lessee right-of-use asset representing its right to use the underlying leased asset and a corresponding lease liability representing its obligation to make lease payments for all leases. A lessee recognizes the related expense as depreciation on the right- of-use asset and interest on the lease liability. Short-term (less than 12 months) and low-value asset leases are exempt from these requirements. The standard is effective for annual reporting periods beginning on or after January 1, 2019. The impact of this standard is currently being assessed. • This phase replaces the current rule-based Hedge accounting: periods beginning This standard is effective for annual reporting of the standard is on or after January 1, 2018 and the impact currently being assessed. IGM Financial Inc. is a financial services company which IGM Financial Inc. is a of Canadians through its principal serves the financial needs distinctly within the advice segment subsidiaries, each operating market. The Company’s wholly-owned of the financial services are Investors Group Inc. and Mackenzie principal subsidiaries Financial Corporation. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 , using the accounting POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 1 5 D

d d n i (unaudited) (In thousands of Canadian dollars, except shares and per share amounts) dollars, except shares and per thousands of Canadian (unaudited) (In . 1 v _ Interim Financial Reporting 5 0 - CORPORATE INFORMATION CORPORATE 6 0 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING OF SIGNIFICANT SUMMARY - 6 1 0 2 _ M financial assets be classified at either amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. incurred loss model for impairment of financial assets with an expected loss model. G I _ NOTES TO THE INTERIM CONDENSED TO THE INTERIM NOTES NOTE 2 NOTE 1 NOTE 1 FUTURE ACCOUNTING CHANGES IFRS 9 FINANCIAL INSTRUMENTS The IASB issued IFRS 9 which replaces IAS 39, the current The IASB issued IFRS 9 which replaces IAS The standard standard for accounting for financial instruments. was completed in three separate phases: • Classification and measurement: This phase requires that • Impairment methodology: This phase replaces the current The unaudited Interim Condensed Consolidated Financial The unaudited Interim Condensed Consolidated Statements) have Statements of the Company (Interim Financial Accounting been prepared in accordance with International Standard 34, March 31, 2016 March 31, Company) is a publicly listed company IGM Financial Inc. (the and domiciled in Canada. The (TSX: IGM), incorporated the Company is 447 Portage Avenue, registered address of Canada. The Company is controlled by Winnipeg, Manitoba, Power Financial Corporation. Financial policies as set out in Note 2 to the Consolidated Statements for the year ended December 31, 2015. The Interim with the Financial Statements should be read in conjunction IGM Financial Consolidated Financial Statements in the 2015 Inc. Annual Report. changes The Company continuously monitors the potential Standards Board proposed by the International Accounting in the standards (IASB) and analyzes the effect that changes may have on the Company’s operations. 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D51 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D52 C C 54

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U IGM FINANCIAL INC. A T 1 _ Less: Collective allowance Held fortrading

investment returnsontheNHAMBSandreinvestmentof whereby theCompanypayscouponsonCMBsandreceives transactions, theCompanyentersintoaswaptransaction on theobligationstosecuritizationentities.AspartofCMB The Companyearnsinterestonthemortgagesandpays is carriedatamortizedcost. proceeds receivedasObligationstosecuritizationentitieswhich sheets andhasrecordedanoffsettingliabilityforthenet the Companyhasretainedthesemortgagesonitsbalance prepayment riskandcertainelementsofcreditrisk.Accordingly, the requirementsforderecognitionasCompanyretains paper (ABCP)programs.Thesetransactionsdonotmeet through Canadianbank-sponsoredasset-backedcommercial Program andCanadaMortgageBond(CMB) National HousingActMortgage-BackedSecurities(NHAMBS) Canada MortgageandHousingCorporation(CMHC)sponsored The Companysecuritizesresidentialmortgagesthroughthe on thesaleofresidentialmortgagestotalled$2.7 million Gainsrealized (2015–$35.4 million). loans, was$31.5 million on obligationstosecuritizationentities,relatedsecuritized Totalinterestexpense (2015–$47.4 million). was $46.6 million Total interestincomeonloansclassifiedasandreceivables 2015–$2,902). (December 31, Total impairedloansasatMarch31,2016were$2,418 Residential mortgages Loans andreceivables Provision Write-offs, Balance, The changeinthecollectiveallowanceforcreditlossesisasfollows: for net beginning credit of of losses recoveries period Balance, end of period IGM FINANCIALINC. FIRST NOTE 4 NOTE 3 E n g 0 4 _ D I G M 52 _ SECURITIZATIONS LOANS 2 0 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 1 6 - 0 6

- 0 5 _ v 1 . i n QUARTER REPORT2016 / NOTESTO d d

D 5 2 THE INTERIMCONDENSED $ 898,632 $ 3,582$ 6,097,385 $ 6,999,599 RLS YAS ER TOTAL 5 YEARS YEARS OR LESS 1 YEAR these mortgagesareinsured. payments whendue.Creditriskisfurtherlimitedtotheextent no recoursetotheCompany’sotherassetsforfailuremake reserves andfuturenetinterestincomeastheABCPTrustshave which arecarriedatcost.Creditriskislimitedtothesecash Company hasprovidedcashreservesforcreditenhancement under theprogram.AspartofABCPtransactions, Program areinsuredbyCMHCoranotherapprovedinsurer All mortgagessecuritizedundertheNHAMBSandCMB regardless ofwhetheramountsarereceivedfrommortgagors. an obligationtomaketimelypaymentssecurityholders Under theNHAMBSandCMBProgram,Companyhas 2015–negative$47.4 million). (December 31, atMarch31,2016 and hadanegativefairvalueof$52.5 million returns onrepaidmortgageprincipal,isrecordedasaderivative to theobligationpayCMBcouponsandreceiveinvestment repaid mortgageprincipal.Acomponentofthisswap,related other items. mortgages heldfortrading,portfolioinsurance,issuecosts,and mortgage bankingrelateditemsincludinginterestincomeon other. Netinvestmentincomeandotheralsoincludes These amountswereincludedinNetinvestmentincomeand (2015–$4.0 million). banking operationstotalled$(1.8) million Fairvalueadjustmentsrelatedtomortgage $7.1 million). (2015 – 6,998,918

CONSOLIDATED FINANCIALSTATEMENTS CONTRACTUAL MATURITY 1 –5 OVER 681 202 (226) $ 705 $ 7,576,853 $ 681 MARCH 31 577,935 2016 7,008,231 705 384,217 75 762 $ $ 7,392,448 $ 705 $ DECEMBER 31 TOTAL 2015 (132) $ 7,008,936 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 55 1 1 - 5 0 - 6 116-05-11 3:11 PM 31, 2015 53 D (1,385,000) (9,172) STATED STATED SHARES VALUE 250,411,395 $ 1,661,017 250,411,395 $ 327,049 14,608 MARCH 150,000 6,000,000 $ 1,655,581 251,469,346 $ OBLIGATIONS TO TO OBLIGATIONS STATED 31, 2016 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 2,388,984 2,454,392 (65,408) 2,454,392 2,388,984 MORTGAGES ENTITIES MORTGAGES NET SECURITIZED SECURITIZATION SECURITIZED

$ 4,581,648 $ 4,700,529 $ 6,970,632 $ (118,881) $ 7,220,583 $ 7,154,921 $ 7,264,161 $ (184,289) $ (43,578) $ 6,981,264 $ 7,238,046 $ 7,092,414 $ 7,272,394 $ (111,150) $ (34,348) 14,526 410 SHARES VALUE TO THE INTERIM 241,810,764 $ 1,604,508 (2,991,900) (19,850) 6,000,000 $ 150,000 244,788,138 $ 1,623,948 until after the reporting period. Issue costs are amortized over until after the reporting period. Issue costs rate basis. the life of the obligation on an effective interest FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 (continued) POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 3 5 D

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_ 5 0 - 6 31, 2015 0 SHARE CAPITAL SECURITIZATIONS SECURITIZATIONS - 6 1 31, 2016 0 2 _ M G I _ NOTE 5 NOTE 4 AUTHORIZED ISSUED AND OUTSTANDING MARCH DECEMBER

Balance, end of period Purchased for cancellation for Purchased Perpetual preferred shares – classified as equity: First preferred shares, Series B The carrying value of Obligations to securitization entities, The carrying value of Obligations to securitization principal payments which is recorded net of issue costs, includes not due to be settled received on securitized mortgages that are Common shares: Balance, beginning of period Issued under Stock Option Plan Carrying value NHA MBS and CMB Program Bank sponsored ABCP Total $ 4,611,583 $ 4,669,974 2,369,681 $ (58,391) 2,422,440 (52,759) Carrying value NHA MBS and CMB Program Bank sponsored ABCP Total Fair value Fair value Unlimited number of: in series First preferred shares, issuable in series Second preferred shares, issuable Class 1 non-voting shares Common shares, no par value 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D53 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D54 C C 56

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U IGM FINANCIAL INC. A T 1 _ a normalcourseissuerbid,effectiveuntilMarch19,2016, March 10,2016.On20,2015,theCompanycommenced or5%ofitscommonsharesoutstandingasat 12.1 million Pursuant tothisbid,theCompanymaypurchaseup 2016whichiseffectiveuntilMarch19,2017. March 20, The Companycommencedanormalcourseissuerbidon excess ofthestatedvaluewaschargedtoRetainedearnings. Thepremiumpaidtopurchasethesharesin $62.1 million). (2015– shares) werepurchasedatacostof$104.3 million In thefirstquarterof2016,2,991,900shares(2015–1,385,000 of upto7.5yearsfromthegrantdateandareexercisable reflective oftheexpectedoptionlife.Optionsvestoveraperiod volatility oftheCompany’ssharepriceoversixyearswhichis Expected volatilityhasbeenestimatedbasedonthehistoric Expected dividendyield Expected volatility Expected optionlife Risk-free interestrate Exercise price ended March31,2016hasbeenestimatedat$1.61per average fairvalueofoptionsgrantedduringthethreemonths options toemployees(2015–1,293,075).Theweighted- In thefirstquarterof2016,Companygranted1,575,595 – Exercisable – Outstanding Common shareoptions contained intheFirstQuarter2016ReporttoShareholders of theCompany’sManagement’sDiscussionandAnalysis the CompanyarediscussedinCapitalResourcessection The capitalmanagementpolicies,proceduresandactivitiesof

IGM FINANCIALINC. FIRST STOCK OPTIONPLAN NORMAL COURSEISSUERBID NOTE 7 NOTE 6 NOTE 5 E n g 0 4 _ D I G M 54 _ SHARE-BASED PAYMENTS CAPITAL MANAGEMENT SHARECAPITAL 2 0 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / NOTESTO d d

D 5 4 (continued) THE INTERIMCONDENSED bid willbecompletedbaseduponmanagement’sdiscretion. periods, purchasesundertheCompany’snormalcourseissuer periods. Outsideofthesepre-determinedtradingblackout issuer bidduringcertainpre-determinedtradingblackout common sharesaretobepurchasedunderitsnormalcourse provides standardinstructionsregardinghowtheCompany’s its commonshares.Theautomaticsecuritiespurchaseplan has establishedanautomaticsecuritiespurchaseplanfor In connectionwithitsnormalcourseissuerbid,theCompany common sharesoutstandingasatMarch13,2015. or5%ofits which authorizedittopurchaseup12.5 million performance targetsaremet. the outstandingoptionscanonlybeexercisedoncecertain no laterthan10yearsafterthegrantdate.Aportionof models include: dates was$35.06.Theassumptionsusedinthesevaluation model. Theweighted-averageclosingsharepriceatthegrant option (2015–$3.49)usingtheBlack-Scholespricing 2015. significantly sinceDecember 31, 2015 IGMFinancialInc.AnnualReportandhavenotchanged and inNote17totheConsolidatedFinancialStatements CONSOLIDATED FINANCIALSTATEMENTS

THREE MONTHSENDEDMARCH31

6.44% 18.00% 0.96% $ 34.94 3,996,381 8,691,076 MARCH 31 6 years 2016 2016 $ 43.97 6 years 3,526,658 7,441,165 2015 DECEMBER 31 2015 5.12% 20.00% 1.04% 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 57 1 1 - 5 0 - 6 116-05-11 3:11 PM 55 D CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AVAILABLE INVESTMENT INVESTMENT AVAILABLE quoted prices that are observable or corroborated by quoted prices that are observable or corroborated observable market data; and little or Unobservable inputs that are supported by primarily no market activity. Valuation techniques are model-based. BENEFITS SECURITIES AND OTHER TOTAL AND BENEFITS SECURITIES EMPLOYEE SALE FOR IN AFFILIATE TO THE INTERIM $ (111,874) $ (22,168) 2,658 13,575 (8,099) 494 $ 77,222 $ (134,042) $ $ (31,994) 3,152 $ 90,797 $ (40,093) to the Consolidated Financial Statements in the 2015 IGM to the Consolidated Financial Statements in changed significantly Financial Inc. Annual Report and have not since December 31, 2015. Level 3 – are not Markets are considered inactive when transactions occurring with sufficient regularity. Inactive markets may be characterized by a significant decline in the volume and level of observed trading activity or through large or erratic bid/offer spreads. In those instances where traded markets are not considered sufficiently active, fair value is measured using valuation models which may utilize predominantly observable market inputs (Level 2) or may utilize predominantly non- observable market inputs (Level 3). Management considers all reasonably available information including indicative broker quotations, any available pricing for similar instruments, recent arms length market transactions, any relevant observable market inputs, and internal model-based estimates. Management exercises judgment in determining the most appropriate inputs and the weighting ascribed to each input as well as in the selection of valuation methodologies. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 COMPREHENSIVE INCOME (LOSS) INCOME COMPREHENSIVE POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 5 5 D

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_ 5 0 - FAIR VALUE OF FINANCIAL INSTRUMENTS VALUE FAIR 6 Unadjusted quoted prices in active markets for identical assets or liabilities; Observable inputs other than Level 1 quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than 0 RISK MANAGEMENT ACCUMULATED OTHER OTHER ACCUMULATED - 6 1 31, 2016 31, 2015 0 2 _ M G I _ NOTE 10 NOTE 9 NOTE 8 MARCH MARCH The risk management policies and procedures of the Company The risk management policies and procedures Risk section of the are discussed in the Financial Instruments Analysis contained in Company’s Management’s Discussion and and in Note 20the First Quarter 2016 Report to Shareholders are generally Fair values are management’s estimates and point in time calculated using market conditions at a specific calculations are and may not reflect future fair values. The are matters of subjective in nature, involve uncertainties and significant judgment. and those for All financial instruments measured at fair value one of three levels which fair value is disclosed are classified into that distinguish fair value measurements by the significance of the inputs used for valuation. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in the most advantageous market, utilizing a hierarchy of three different valuation techniques, based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 – Level 2 – Balance, beginning of period Balance, beginning of period (loss) Other comprehensive income Balance, end of period Amounts are recorded net of tax. $ (12,950) (123,510) $ 2,571 194 $ $ (136,460) $ 3,863 12,598 $ 2,765 (110,718) $ (6,516) 16,461 $ (117,234) Balance, beginning of period (loss) Other comprehensive income Balance, end of period 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D55 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D56 C C 58

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U IGM FINANCIAL INC. A T 1 _ loans, derivativefinancialinstruments,depositsandcertificates Level 2assetsandliabilitiesincludefixedincomesecurities, available fromactivemarkets. financial liabilitiesininstanceswheretherearequotedprices securities andopen-endinvestmentfundunitsother Level 1financialinstrumentsincludeexchange-tradedequity assumptions: Fair valueisdeterminedusingthefollowingmethodsand IGM FINANCIALINC. FIRST NOTE 10 E n g discounted cashflowanalysis. instruments withsimilarcharacteristicsandmaturities,or market prices,whereavailable,prevailingratesfor Derivative financialinstrumentsarevaluedbasedonquoted debenture availableinthemarket. Long-term debtisvaluedusingquotedpricesforeach offered fordepositswithsimilartermsandcreditrisks. contractual cashflowsusingmarketinterestratescurrently Deposits andcertificatesarevaluedbydiscountingthe terms andcharacteristics. securities issuedbythesesecuritizationentitieshavingsimilar the expectedfuturecashflowsatprevailingmarketyieldsfor Obligations tosecuritizationentitiesarevaluedbydiscounting expected futurecashflowsatprevailingmarketyields. Loans classifiedasLevel3arevaluedbydiscountingthe rates forloanswithsimilarcreditriskandmaturity. Loans classifiedasLevel2arevaluedusingmarketinterest used inthevaluationtechniques. cash flows.Whereverpossible,observablemarketinputsare related todiscountratesandthetimingamountoffuture valuation techniquesareusedthatrequireassumptions available. Whenaquotedmarketpriceisnotreadilyavailable, are valuedusingquotedpricesfromactivemarkets,when Securities andotherfinancialassetsliabilities 0 4 _ D I G M 56 _ 2 0 FAIR VALUE OFFINANCIALINSTRUMENTS 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / NOTESTO d d

D 5 6 THE INTERIMCONDENSED (continued) certain otherfinancialliabilities. financial assets,accountspayableandaccruedliabilities, equivalents, accountsandotherreceivables,certain approximation offairvalue.Theseitemsincludecashand measured atfairvalueifthecarryingamountisareasonable value informationforfinancialassetsandliabilitiesnot those recordedatamortizedcost.Thetablealsoexcludesfair between thosefinancialinstrumentsrecordedatfairvalueand their levelsinthefairvaluehierarchy.Thetabledistinguishes values offinancialassetsandliabilities,including The followingtablepresentsthecarryingamountsandfair notional amountoftheswap. assumed mortgageprepaymentrateincreases(decreases)the on historicalprepaymentpatterns.Anincrease(decrease)inthe average unobservableprepaymentrateof15%whichisbased determine thefairvalueofswap,isdeterminedusingan the swaps.Thenotionalamount,whichisaninputusedto is determinedbydiscountingtheprojectedcashflowsof on thereinvestmentofrepaidmortgageprincipal.Fairvalue Canada MortgageBondsandreceivesinvestmentreturns the CMBProgramwherebyCompanypayscouponson which representthecomponentofaswapenteredintounder instruments consistofprincipalreinvestmentaccountswaps and derivativefinancialinstruments.Derivative other financialassets,obligationstosecuritizationentities no tradingactivityvaluedusingbroker-dealerquotes,loans, Level 3assetsandliabilitiesincludesecuritieswithlittleor broker quotes. The fairvalueoflong-termdebtisdeterminedusingindicative similar techniquesusingprimarilyobservablemarketinputs. valuation models,discountedcashflowmethodologies,or instruments anddepositscertificatesaredeterminedusing dealer pricequotes.Thefairvalueofderivativefinancial is determinedusingquotedmarketpricesorindependent and long-termdebt.Thefairvalueoffixedincomesecurities CONSOLIDATED FINANCIALSTATEMENTS 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 59 1 1 - 5 0 - 6 116-05-11 3:11 PM 57 D CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE INTERIM VALUE FAIR 9,273 – – 5,745 9,273 5,745 9,273 – – 5,745 (continued) 56,290 53,993 1,019 1,278 66,365 56,290 – 66,365 – 66,365 58,425 – 5,923 52,502 58,425 577,935 – 577,935 – 577,935 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER 6,998,918 – 7,249,835 7,220,583 29,252 $ 8,632 $ 8,632 $ – $ – $ 8,632 300,915 7,154,921 1,325,000 – 302,250 – 1,657,305 – 7,264,161 7,264,161 – – 302,250 1,657,305 – CARRYING VALUE CARRYING 1 LEVEL 2 LEVEL LEVEL 3 TOTAL QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 7 5 D

d d n i . 1 v _ 5 0 - FAIR VALUE OF FINANCIAL INSTRUMENTS INSTRUMENTS OF FINANCIAL VALUE FAIR 6 31, 2015 0 - 6 1 31, 2016 0 2 _ M G I _ NOTE 10 MARCH DECEMBER There were no significant transfers between Level 1 and Level 2 in 2016 and 2015. – Available for sale for Financial assets recorded at fair value Available Securities – $ 6,092 $ $ 6,092 – $ – $ 6,092

at fair value Financial assets recorded Securities – Available for sale – Held for trading for trading Held for – Held instruments Loans – assets financial financial Derivative receivables Other and Financial assets recorded at amortized cost Loans 44,670 Loans – instruments 42,215 58,364 384,217 liabilities financial 1,167 Financial liabilities recorded at fair value financial Derivative 1,288 – entities certificates 44,670 Other – 7,008,231 58,364 384,217 securitization and Financial liabilities recorded at amortized cost 9,273 to Deposits – – 7,265,902 debt Obligations – 57,836 7,238,046 384,217 27,856 58,364 7,092,414 Long-term – – – 10,422 – 4,145 47,414 57,836 9,273 7,272,394 310,074 4,145 7,272,394 – 9,273 – – 311,770 – 1,325,000 – 311,770 4,145 1,661,150 – 1,661,150 – – Held for trading Loans instruments financial Derivative – Held for trading Financial assets recorded at amortized cost Financial assets recorded Loans – Loans and receivables certificates Financial liabilities recorded at amortized cost and Deposits debt to securitization entities Obligations Long-term Other financial assets financial Other Financial liabilities recorded at fair value liabilities financial Derivative financial instruments Other 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D57 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D58 C C 60

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U IGM FINANCIAL INC. A T 1 _ vrg ubro omnsae usadn (1) Excludes2,291thousandsharesin2016relatedtooutstandingstockoptionsthatwereanti-dilutive(2015–571thousand). Diluted Basic Add:Potentialexerciseofoutstanding stockoptions Averagenumberofcommonshares outstanding Number ofcommonshares Netearningsavailabletocommonshareholders Perpetual preferred Net share earnings dividends Earnings Otherfinancialassetspreviouslyrecorded atcostwerere-measuredfairvalueusingrecentmarkettransactions. (3) IncludedinAvailableforsalesecurities –Netunrealizedgains(losses)intheConsolidatedStatementsofComprehensiveI (2) IncludedinNetinvestmentincome the ConsolidatedStatementsofEarnings. (1) Other financial assets Securities Assets – instruments,net Held Derivative financial Liabilities for –Heldfortrading Other financial $ assets trading Securities 1,603 $ 19 $ – Assets $ – $ – $ – JANUARY $ BALANCE 1,622 The followingtableprovidesasummaryofchangesinLevel3assetsandliabilitiesmeasuredatfairvalueonrecurringbasis INCLUDED 1 (LOSSES) GAINS/ NET IN OTHER GAINS/(LOSSES) INCLUDED EARNINGS COMPREHENSIVE PURCHASES IN ntuet,nt 637 2,0) (9) ,0 – 50,739 – 2,301 (793) – (27,506) 26,327 instruments,net Derivative financial Liabilities vrg ubro omnsae usadn iue ai Earnings percommonshare Averagenumberofcommonshares outstanding–dilutedbasis MARCH IGM FINANCIALINC. FIRST MARCH NOTE 11 NOTE 10 E n g 0 4 _ D I G 31, 2015 31, 2016 M 58 _ 2 0 EARNINGSPERCOMMON SHARE FAIR VALUE OFFINANCIALINSTRUMENTS 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / NOTESTO (3) d d – – 3,562 – – 5,711 9,273

D

5 (in thousands)

8 (in dollars) $ 1,288 $ (10) $ – $ – $ – $ – $ 1,278 744 (,0) 117 ,7 – 52,502 – 1,157 4,075 (8,006) 47,414 9,273 – – – – – 9,273 (1)

THE INTERIMCONDENSED (1) INCOME (continued) (2) CONSOLIDATED FINANCIALSTATEMENTS AD AND TRANSFERS BALANCE ISACSSTLMNS IN ISSUANCES SETTLEMENTS

ncome. THREEMONTHSENDEDMARCH31 $ 0.69 $ 0.69 $ 166,963 $ 169,176 243,127 243,211 2,213 2016 /OUT MARCH 31 84 $ 0.80 0.80 $ $ 251,211 200,346 2,213 $ 202,559 $ 210 251,421 2015 . 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 61 1 1 - 5 0 - 6 116-05-11 3:11 PM 59 D CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE INTERIM of 4.51% preferred shares of a wholly-owned subsidiary of of 4.51% preferred shares As sole consideration for the Power Financial Corporation. Company issued $0.33 billion of 4.50% preferred shares, the to Power Financial Corporation. secured demand debentures enforceable rights to settle these The Company has legally on a net basis and the Company intends financial instruments to exercise these rights. funds. It also earns fee revenues from the provision of brokerage funds. It also earns fee revenues from the provision banking products. services and the distribution of insurance and revenues In addition, Investors Group earns intermediary activities and primarily from mortgage banking and servicing products. from the assets funded by deposit and certificate services it provides as Mackenzie earns fee-based revenues from as investment advisor fund manager to its investment funds and to sub-advisory and institutional accounts. Planning Counsel, Corporate and Other includes Investment net investment equity income from its investment in Lifeco, income, and also income on unallocated investments, other includes consolidation elimination entries. • acquired $0.33 billion 6, 2015, the Company On January and debentures and related dividend The preferred shares are offset in the Consolidated income and interest expense of the Company. Tax savings arise due to Financial Statements the tax deductibility of the interest expense. FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 9 5 D

d d n i . 1 v _ 5 0 - SEGMENTED INFORMATION RELATED PARTY TRANSACTIONS PARTY RELATED 6 0 - 6 1 0 2 _ M of 4.51% preferred shares of a wholly-owned subsidiary of of 4.51% preferred shares As sole consideration for the Power Financial Corporation. Company issued $1.67 billion of 4.50% preferred shares, the to Power Financial Corporation. secured demand debentures enforceable rights to settle these The Company has legally on a net basis and the Company intends financial instruments to exercise these rights. G I _ NOTE 13 NOTE 12 The Company’s reportable segments are: Group • Investors • Mackenzie Other and • Corporate structure These segments reflect the current organizational measures and and internal financial reporting. Management based on earnings evaluates the performance of these segments before interest and taxes. in the conduct of Investors Group earns fee-based revenues related to the its core business activities which are primarily of its investment distribution, management and administration The Company entered into tax loss consolidation transactions consolidation transactions entered into tax loss The Company Power Financial Corporation, after with its parent company, rulings: obtaining advance tax • $1.67 billion January 7, 2014, the Company acquired On 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D59 PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D60 C C 62

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U IGM FINANCIAL INC. A T 1 _ annsbfr noetxs Total assets Goodwill Identifiable assets Net earningsavailabletocommonshareholders Perpetual Net Income Earnings beforeincometaxes preferred Interest earnings Earnings beforeundernoted taxes share expense Non-commission Commission Expenses dividends Netinvestmentincomeandother Distribution fees Administration fees Management fees Revenues 2016 IGM FINANCIALINC. FIRST THREE MONTHSENDEDMARCH31 NOTE 13 E n g 0 4 _ D I G M 60 _ 2 0 SEGMENTEDINFORMATION 1 POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 6 - 0 6 - 0 5 _ v 1 . i n QUARTER REPORT2016 / NOTESTO d d

D 6 0 (continued) THE INTERIMCONDENSED $ $ 12,131,386 $1,794,122 10,380,911 $ $1,304,134 2,472,714 $ $ 9,033,130 1,937,617 $ 14,791,242 233,457 33,929 36,454$ $ 163,074 $ $483,836 15,127 $ $160,491 $ 308,218 CONSOLIDATED FINANCIALSTATEMENTS 1,347,781 143,495 1,168,580 2,659,856 INVESTORS CORPORATE 8,1 4,0 763 489,382 57,663 149,302 227,867 282,417 15,211 77,627 261,515 42,452 135,029 71,675 147,388 722,839 91,592 185,756 445,491 377 38 2,9 43,685 29,590 318 94,968 42,527 2,563 100,350 13,777 4,348 49,878 22,384 73,618 GROUP MACKENZIE AND TOTAL OTHER $ 166,963 169,176 41,368 210,544 22,913 2,213 116-05-11 3:11PM 6 - 0 5 - 1 1

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IGM FINANCIAL INC. 63 1 1 - 5 0 - 6 116-05-11 3:11 PM 61 D CONDENSED CONSOLIDATED FINANCIAL STATEMENTS GROUP MACKENZIE AND OTHER TOTAL AND GROUP MACKENZIE INVESTORS CORPORATE CORPORATE INVESTORS TO THE INTERIM 456,998 210,966 760,863 210,966 92,899 456,998 480,489 154,044 60,135 266,310 1,347,781 1,168,580 143,495 2,659,856 FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER (continued) QUARTER REPORT 2016 / NOTES / QUARTER REPORT 2016 POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER IGM FINANCIAL INC. FIRST IGM FINANCIAL INC. 1 6 D

d d n i . 1 v _ 5 0 - SEGMENTED INFORMATION INFORMATION SEGMENTED 6 0 - 6 1 0 2 _ M G I _ NOTE 13 THREE MONTHS ENDED MARCH 31 31 THREE MONTHS ENDED MARCH 2015 fees fees Revenues Management Administration fees Distribution Net investment income and other Expenses Commission Non-commission expense taxes Earnings before undernoted earnings Interest 102,236 22,750 Earnings before income taxes 3,667 25,540 Income 73,029 Net 55,065 $ 316,181 $ 177,962 $ Perpetual preferred share dividends 14,968 $ 509,111 202,559 Net earnings available to common shareholders 21,518 46,270 assets Identifiable 3,246 45,017 Goodwill 94,533 4,218 assets Total 29,247 121,331 144,979 76,186 77,858 16,105 $ 213,622 44,030 266,867 54,983 190,688 $ 56,922 $ 32,764 280,374 $ 8,272,283 $ 1,342,012 $ 2,140,083 11,754,378 $ $ $ 9,620,064 $ 2,510,592 200,346 $ 2,283,578 14,414,234 $ 257,624 2,213 4 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D61 Page intentionally left blank.

D 62 POWER CORPORATION OF CANADA — FIRST QUARTER REPORT 2016

PPCC_QUAT1_Eng04_IGM_2016-06-05_v1.inddCC_QUAT1_Eng04_IGM_2016-06-05_v1.indd D62D62 116-05-116-05-11 3:113:11 PMPM M P

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PARGESA HOLDING SA 1 1 - 5 0 - 6 116-05-11 3:10 PM 1 E nancial results results nancial FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER PART E Pargesa Holding SA Holding Pargesa of Pargesa Holding SA as issued by Pargesa Holding SA. Holding SA as issued by Pargesa of Pargesa POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER The attached document discloses information relating to the fi relating The attached document discloses information 1 E

d d n i . 1 v _ 5 0 - 1 1 - 6 1 0 2 _ R A P _ 5 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E1 PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E2 C C

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U PARGESA HOLDING SA A T 1 _ š’ƒ†‹‰‹–•Dz‹ —„ƒ–‘”dz‹˜‡•–‡–•ǡ  ‘–‹—‡†–‘‹ ”‡ƒ• ƒ‡™Ž„—‡–‹˜•• Š– ‹Ž ”†ƒŽ ‘– ‰”ƒ†—ƒŽŽ› ™‹ŽŽ –Šƒ– ’”‘ ‡‡†•™‹ŽŽ„‡”‡‹˜‡•–‡†ƒ†–Š‡Ž‡˜‡Ž‘ˆ”‡–—”ˆ”‘–Š‡‡ ‹˜‡•–‡–• ƒ‡ –‘ —•‡† „‡ ™‹ŽŽ •ƒŽ‡• –Š”‘ ˜‹•‹„Ž‡ „‡ ™‹ŽŽ ‹ ‘‡ ‘’‡”ƒ–‹‰ ƒ”‰‡•ƒǯ• –‘ ‘–”‹„—–‹‘   –Šƒ– ‹’ƒ – –Š‡ Š‘Ž†‹‰ǡ –Š‹• ‘ ›‹‡Ž† †‹˜‹†‡† Š‹‰Š –Š‡ ‹˜‡ ˆ‘” ‘ˆ̀Ͷʹͺ‹ŽŽ‹‘Ǥ•ƒ”‡•—Ž–‘ˆ–Š‡•‡–”ƒ•ƒ –‹‘•ǡ  ‹•–‹–—–‹‘ƒŽ‹˜‡•–‘”•ǤŠ‡•‡–”ƒ•ƒ –‹‘•”‡’”‡•‡–‡†ƒ–‘–ƒŽ ƒ’‹–ƒŽǡ„‘–Š‹–Š‡ƒ”‡–ƒ†–Š”‘—‰Šƒ’”‹˜ƒ–‡’Žƒ ‡‡–„› –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ǡ •‘Ž†ƒƒ††‹–‹‘ƒŽʹ͹Ǥͷ‹ŽŽ‹ HIGHLIGHTS š Šƒ‰‡ƒ†‘–Š‡ƒ”‹•š Šƒ‰‡Ǣƒ†ƒŽ ‰‹‡ȋ‡‡”‰›Ȃ‡Ž‡ –”‹ ‹–›ƒ†‰ƒ•ȌǤ ‹•Ž‹•–‡†‘–Š‡™‹• ‹‡”‘†‹ ƒ”†ȋ™‹‡•ƒ†•’‹”‹–•ȌǡͳͷǤͲΨ‹ ȋ‹•’‡ –‹‘ǡ ‹‡”ƒŽ•ȌǡͻǤͶΨ‹ƒˆƒ”‰‡ ‘Ž ‹ȋ ‡‡–ǡƒ‰‰”‡‰ƒ–‡•ƒ† ‘ ”‡Ž‹•–‡†‘–Š‡—”‘‡š–š Šƒ‰‡ȋǣ ȌǤ––Š‡•ƒ‡†ƒ–‡ǡ ”‡’”‡•‡–‹‰ͷʹǤͲΨ‘ˆ–Š‡˜‘–‹‰”‹‰Š–•Ǥ ǡƒŠ‘Ž†‹‰ ‘’ƒ› •ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡƒ”‰‡•ƒŠ‡Ž†ƒͷͲǤͲΨ‡“—‹–›‹–‡”‡•–ȋ•ƒ Ž‹‹–‡†—„‡”‘ˆŽƒ”‰‡—”‘’‡ƒ ‘’ƒ‹‡•Ǥ ™‹–œ‡”Žƒ†ƒ†‹–••Šƒ”‡•ƒ”‡Ž‹•–‡†‘–Š‡™‹••š Šƒ‰‡ȋ ‹ƒ”‰‡•ƒ ‘Ž†‹‰ȋƒ”‰‡•ƒȌǡ–Š‡ƒ”‰‡•ƒ‰”‘—’ǯ•’ƒ”‡– ‘‡–Š‡”Žƒ†•Ǧ„ƒ•‡† ‘’ƒ›–Šƒ–ǡƒ•ƒ–ƒ” Š͵ͳǡʹͲͳ͸ǡŠ‡Ž†ƒ͹ͷ ‘™‡” ‹ƒ ‹ƒŽ‘”’‘”ƒ–‹‘ƒ†–Š‡ ”°”‡ ”‘—’‘ˆŠƒ”Ž‡”‘‹ǡ   E n g

0 •–”ƒ–‡‰‹ •Šƒ”‡Š‘Ž†‹‰Ǥ ’—––‘•Šƒ”‡Š‘Ž†‡”•ˆ‘”ƒ’’”‘˜ƒŽƒ––Š‡ƒ—ƒŽ‰‡‡”ƒŽ‡‡–‹‰ ƒ”‡–˜ƒŽ—‡‘ˆ̀ͳǤ͵„‹ŽŽ‹‘ǤŠ‡ƒ’’‘‹–‡–‘ˆƒ ”‡’”‡•‡ †‹†ƒ•ǣ–ƒ” Š͵ͳǡʹͲͳ͸ǡ Š‡Ž†͸ǤͳΨ‘ˆ†‹†ƒ•ǯ• ƒ’‹–ƒŽȋͶ ‡”•‹‰ ”‡˜Ž‡ ˆ ͺ͵ ‹Ž‘Ǥ –  ”ǯƒ—ƒ ƒ’‹–ƒŽ ‹ ‘”‡ǯ• ‹ ‘”‡ǯ• – ‹ŽŽ‹‘Ǥ ‘ˆ ̀ͺ͵͵ •Šƒ”‡Š‘Ž†‡”•ƒ’’”‘˜‡†–Š‡ƒ’’‘‹–‡–‘ˆƒ•‡ ‘††‹”‡ –‘””‡’” ͳ͹ǤͲΨ ‘ˆ Š‡Ž† ˜ƒŽ—‡ ƒ”‡–  ƒ ʹͲͳ͸ǡ ”‡’”‡•‡–‹‰ ͵ͳǡ ƒ” Š – ‹ ‘”‡ǣ ƒ”‡–˜ƒŽ—‡‘ˆ̀ʹͻͳ‹ŽŽ‹‘Ǥ –‡šǣ–ƒ” Š͵ͳǡʹͲͳ͸ǡ Š‡Ž†ͳ͵ǤͷΨ‘ˆ–‡šǯ• ƒ’‹–ƒŽȋ͹Ǥ 5 _ E P A R 2 _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6 - 1 1 - 0 5 _ v  1 . i n d d

E 2 PARGESA Ž–Š‡‘–Š‡” ‘’ƒ‹‡•  HOLDING ‘‘–ƒŽ•Šƒ”‡•ǡ”‡’”‡•‡–‹‰ͳǤͳΨ‘ˆ–Š‡ ‘’ƒ›ǯ• ™‹˜‡•–‡–•Ǥ ƒ‘—–‘ˆ̀ͳ„‹ŽŽ‹‘ƒ†‰‡‡”ƒ–‡†ƒ ƒ’‹–ƒŽ‰ƒ‹ ˜‡”‹ˆ‹ ƒ–‹‘ǡ–‡•–‹‰ƒ† ‡”–‹ˆ‹ ƒ–‹‘Ȍǡƒ†ʹǤ͵Ψ‹ •   š Š ƒ  ‰ ‡ Ǣ  ƒ ˆ ƒ ” ‰ ‡ ‘ Ž ‹   ‹ • Ž ‹ • – ‡ † ‘  – Š ‡  ™ ‹ • •  ǣ ȌǤŠ‡ƒ”‰‡•ƒ‰”‘—’Š‘Ž†•‹–‡”‡•–•‹ƒ Š‡Ž†ͳǤ͵Ψ‘ˆ‘–ƒŽǯ• ƒ’‹–ƒŽƒ–ƒ” Š͵ͳǡʹͲͳ͸Ǥ ‡‹–••–ƒ‡•‹†‹†ƒ•ǡ‹ ‘”‡ƒ†–‡šǤ ƒ”‡Ž‹•–‡†‘–Š‡ƒ”‹•š Šƒ‰‡Ǥ ‰‘– Ͳ͸ ™˜”–‡ ” ‡• ” –Š‡ ˆ”‘ ’”‘ ‡‡†• –Š‡ ‘™‡˜‡”ǡ ʹͲͳ͸Ǥ —‰Š‘—– ™ƒ›‘ˆƒƒ ‡Ž‡”ƒ–‡†„‘‘„—‹Ž†‹‰’”‘ ‡••–‘ Š‡Ž†ƒͷ͵ǤͺΨ‹–‡”‡•–‹ ‡”›•ȋ‹†—•–”‹ƒŽ ǤͶΨ˜‘–‹‰‹–‡”‡•–ƒ†ƒͷͷǤͷΨ‡“—‹–›‹–‡”‡•– ‡‹ʹͲͳͷȌ‹ ”‘—’‡”—š‡ŽŽ‡•ƒ„‡”–ȋ Ȍǡ –‡ȌǡͳǤ͵Ψ‹‘–ƒŽȋ‡‡”‰›Ȃ‘‹Žƒ†‰ƒ•Ȍǡ͹ǤͷΨ  ‘ƒ›ͳʹǡʹͲͳ͸Ǥ†‹†ƒ•™‘—Ž†–Š‡„‡ ‘‡ƒ ‡Ž‰‹—ǡ‡ƒ ŠŠ‘Ž†ͷͲǤͲΨ‘ˆƒ”Œ‘‹– ‘ǤǤǡƒ ™Š‘•‡Š‡ƒ†‘ˆˆ‹ ‡‹•‹”—••‡Ž•ǡ‡Ž‰‹—ǡ‹• ‹—‡ ‘ ‘‡†’‹‰  Š –Š‡•‡ ™Š‡ ‘ †‡’‡†‹‰ ‹ ‘‡ǡ –‘ ”‹„—–‡ SA Š•” †•‘ƒ• ‹Ž ƒ‡  ‘–ƒŽǯ• ‘ Šƒ˜‡ ™‹ŽŽ †‹•’‘•ƒŽ• ”‡ ‡– –Š‡•‡ ƒ›”‡ƒ ƒ‹• ‡† ˆ‹‡  ‡‡˜ƒǡ ‹ ‘ˆˆ‹ ‡ Š‡ƒ† ‹–• Šƒ• ƒ”‰‡•ƒ ’ƒ›Ǥ ‡•‡–‹‰ Ǥ –ƒ–‹˜‡–‘†‹†ƒ•ǯ••—’‡”˜‹•‘”›„‘ƒ”†™‹ŽŽ„‡ Ǥ͹Ψƒ–‡ ‡„‡”͵ͳǡʹͲͳͷȌǡ”‡’”‡•‡–‹‰ƒ ͸Ψƒ–‡ ‡„‡”͵ͳǡʹͲͳͷȌǡ”‡’”‡•‡–‹‰ƒ  ‰”Ž ‡–‘”Ž ͸ʹͲͳ͸ǡ ʹ͸ǡ ’”‹Ž ‘ ‡‡–‹‰ ‰‡‡”ƒŽ Ž ͳǤΨ – ‡‡„” ͳʹͲͳͷȌǡ ͵ͳǡ ‡ ‡„‡” ƒ– ȋͳ͸Ǥ͸Ψ   116-05-11 3:10PM 6 - 0 5 - 1 1

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PARGESA HOLDING SA 1 1 - 5 0 - 6 116-05-11 3:10 PM 3 E  ‘ˆ ”‡•—Ž–•ǡ –Š‡ ‘–”‹„—–‹‘ ‘ˆ –Š‡ ƒ‹ RESULTS ̀Ͷʹ͸‹ŽŽ‹‘ȋƒ’’”‘š‹ƒ–‡Ž›ͺͶΨ‘ˆ–Š‡ ƒ”‰‡•ƒ ‘–‹—‡•–‘’—„Ž‹•Šƒ‡ ‘‘‹   –”ƒ•ƒ –‹‘•Ǥ Ǧ‘’‡”ƒ–‹‰ ‹–‡• ‹ –Š‡ ‹ ‘‡ǡ –Š‡ ‘Ǧ Ȍ ƒ “—‹”‡† ƒ ‹†‹”‡ – ƒŒ‘”‹–› •–ƒ‡ ‹ –Šƒ––Š‡›Šƒ†•‹‰‡†ƒƒ‰”‡‡‡–™‹–Š–Š‡ †–Š‡‹’ƒ –‘ˆ‡–ˆ‹ƒ ‹ƒŽ‹ ‘‡ǤŠ‡ ‡”•ǡƒ’”‹˜ƒ–‡‡“—‹–›ˆ—†–‘™Š‹ Š‹‡ƒ ‘ ‘ˆ ‡—”‹‰ ”‡‡ ‘—–ƒ‹ǡ  Ǥǡ ƒ ‰”‘—’ ‹–Š –Š‡ ‹ ‘‡ ˆ”‘ –Š‡ ‘’‡”ƒ–‹‘• ‘ˆ –Š‡ ›•–ƒ‡‹–Šƒ– ‘’ƒ›ǡ–Š‡’ƒ”‡– ‘’ƒ›  ƒ‘—–‡† –‘ ̀͵ͷͲ ‹ŽŽ‹‘ ȋ̀Ͷͳ͵ ‹ŽŽ‹‘ ƒ– ˆ‹ƒ ‹ƒŽ‹•–”—‡–•Ȍǡ•‘–Š‹• ‘–‹—‘—•˜‹‡™ ‹ˆ”‡•Šˆ‘‘†Ǥ Žƒ”–Š‡‹ ‘‡ˆ”‘’”‹˜ƒ–‡‡“—‹–›ƒ –‹˜‹–‹‡•ƒ† ‹‘‘ˆ–Š‡‰”‘—’ǯ•”‡•—Ž–•Ǥ  ‘‡ –‹‘™‹–Š†‹•’‘•ƒŽ•ƒ†ƒ›”‡•–”— –—”‹‰ †‹ˆˆ‡”‡–ƒ ‘—–‹‰–”‡ƒ–‡–•†‡’‡†‹‰‘–Š‡ ‘”ƒ–‹‘‘˜‡”–Š‡Ž‘‰–‡”ƒ„‘—––Š‡ ‘–”‹„—–‹‘ ‡‰”ƒ–‹‘ˆ‘” ‡”›•ǡ‡“—‹–›‡–Š‘†ˆ‘”ƒˆƒ”‰‡—’–‘ FINANCIAL  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER PARGESA’S  ™Š‹ ŠŠ‹‰ŠŽ‹‰Š–‹’ƒ”–‹ — OF  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER 3 E

d d n i PRESENTATION .  1 v _ 5 0 - 1 1 - 6 1 0 2 _ R ƒ” ŠʹͲͳ͸ǡƒ‰”‘—’‘ˆ‹˜‡•–‘”•ǡ‹ Ž—†‹‰ƒ’‹–ƒŽƒ”– ƒ’‹–ƒŽ ‘‹––‡† ̀ͳͳ͵ ‹ŽŽ‹‘ ‹ ʹͲͳͷǡ ˆ‹ƒŽ‹œ‡† –Š‡ ƒ “—‹•‹–‹ •’‡ ‹ƒŽ‹œ‹‰‹’‡”•‘ƒŽ„‡˜‡”ƒ‰‡•›•–‡•Ǥ ˆ‘—†‡”ƒ†ƒŒ‘”‹–›•Šƒ”‡Š‘Ž†‡”‘ˆ”‘•‘Ž–‘ƒ “—‹”‡ƒ‹‘”‹– ‘ˆ ”ƒ† ”ƒ‹•ǡƒ Šƒ‹‘ˆ ”‡ Š•—’‡”ƒ”‡–•–Šƒ–•’‡ ‹ƒŽ‹œ‡• – ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ †‡„– ˆ—† ƒ”–‡•‹ƒ Šƒ† ƒ†‡ˆ—†ǯ• ‘‹–‡–•Ȍ‹˜‡•–‡†‹’”‹ƒ”›ƒ†•‡ ‘†ƒ”›ˆ‹ƒ ‹‰ ƒ’‹–ƒŽ ƒŽŽ• ‘ˆ ƒ” ŠʹͷǡʹͲͳ͸ǡƒ‰”‘—’‘ˆ‹˜‡•–‘”•Ž‡†„›ƒ‰ƒ”†ƒ‘— ‡† ‹ƒ ‹°”‡‘‘’‹‰ǤǤǤǡƒ—”‘’‡ƒ–Š‡‡Ǧ’ƒ”‘’‡”ƒ–‘”Ǥ  –Š‡ ˆ‹”•– “—ƒ”–‡” ‘ˆ ʹͲͳ͸ǡ ”‰‘ ƒ’‹–ƒŽ ƒ”–‡”•  ȋ A

P _ 5 – ƒ” Š ͵ͳǡ ʹͲͳ͸ǡ ǯ• ‘‹–‡–• —†‡” ‹–• ˆ‹ƒ ‹ƒŽ ’‹ŽŽƒ”  ‡ ‡„‡”͵ͳǡʹͲͳͷȌǤ   ‘–Š‡”‹˜‡•–‡–ˆ—†•ȋ ‘„‹‡†—†‡”‹‡ƒƒ’‹–ƒŽƒ– Ȍƒ ƒƒŽ›•‹•ƒŽ•‘†”ƒ™•ƒ†‹•–‹ –‹‘„‡–™‡‡–Š‡‘’‡”ƒ–‹‰ƒ†‘ ‘’‡”ƒ–‹‰’ƒ”–„‡‹‰ ‘’‘•‡†‘ˆ‡– ƒ’‹–ƒŽ‰ƒ‹•ƒ†Ž‘••‡•‹ ‘•–•ƒ†‹’ƒ‹”‡–•ǡ‘””‡˜‡”•ƒŽ•‘ˆ’”‡˜‹‘—•‹’ƒ‹”‡–•Ǥ  ’”‡•‡–ƒ–‹‘‘ˆ‹–•”‡•—Ž–•ǡ‹‘”†‡”–‘’”‘˜‹†‡ ‘–‹—‘—•‹ˆ ‘ˆ‡ƒ Š‘ˆ‹–•ƒŒ‘”•Šƒ”‡Š‘Ž†‹‰•–‘‹–•”‡•—Ž–•Ǥ ”‡“—‹”‡ ‰”‘—’ǯ•’‡” ‡–ƒ‰‡Š‘Ž†‹‰‹‡ƒ Š‘ˆ‹–•‹˜‡•–‡–•ȋˆ—ŽŽ‹– —‡͵ͲǡʹͲͳͷǡ™‹–Š‘–Š‡”ƒŒ‘”‰”‘—’Š‘Ž†‹‰•„‡‹‰„‘‘‡†ƒ• ™‘—Ž†„‡‹–‡””—’–‡†™‹–Š‘—––Š‹•ƒ††‹–‹‘ƒŽ‡ ‘‘‹ ’”‡•‡–ƒ– Š‡ ‡ ‘‘‹  ’”‡•‡–ƒ–‹‘ •Š‘™•ǡ ‹•Šƒ”‡Š‘Ž†‹‰•–‘–Š‡ ‘•‘Ž‹†ƒ–‡†‹ ‘‡‘ˆƒ”‰‡•ƒǡ–‘‰‡–Š‡”™ –‡”• ‘ˆ –Š‡ ‰”‘—’ǯ• •Šƒ”‡ Š‘Ž†‹‰ ‘’ƒ‹‡•ȋƒ”‰‡•ƒƒ† Ȍǡ ECONOMIC ƒ††‹–‹‘–‘–Š‡ƒ ‘—–•†”ƒ™—’‹ƒ ‘”†ƒ ‡™‹–Š ǡ  ‹‡ƒƒ’‹–ƒŽȋ ǯ•Dzˆ‹ƒ ‹ƒŽ’‹ŽŽƒ”dzȌǣ  0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E3 PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E4 C C

_ PART E Q

U PARGESA HOLDING SA A T 1 _ Net ‘Ǧ‘’‡”ƒ–‹‰‹ ‘‡ȋŽ‘••Ȍˆ” p p p Operating ȏ—ƒ—†‹–‡†Ȑ ȏ‹‹ŽŽ‹‘•‘ˆ™‹••ˆ”ƒ •Ȑ  ‘”†‹‰–‘–Š‹•ƒ’’”‘ƒ Šǡ–Š‡‡ ‘‘‹ ”‡•—Ž–•ˆ‘”–Š‡ˆ‹”•–   –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸™ƒ•ͳǤͲͻ͸ǡ ‘’ƒ”‡†™‹–ŠͳǤͲ͹Ͳ‹–Š‡ ‘•–‹ ‘‡ ‘‡•ˆ”‘ ǯ• ‘–”‹„—–‹‘ǡ™Š‹ Š‹•†‡‘‹ƒ–‡†  Ȁ ƒ‡ƒ‡‡ ƒ‰ƒ‡     ̀Ȁ ƒ˜‡”ƒ‰‡‡š Šƒ‰‡”ƒ–‡ ˜‡”ƒ‰‡—„‡”‘ˆ•Šƒ”‡•‹ ‹” —Žƒ–‹‘ȏ‹–Š‘—•ƒ†•Ȑ  ‘Ǧ‘’‡”ƒ–‹‰‹ ‘‡ȋŽ‘••Ȍˆ”‘ ‘•‘Ž‹†ƒ–‡†‘”‡“—‹–›Ǧƒ ‘—– Economic ‡‡”ƒŽ‡š’‡•‡•ƒ†–ƒš‡• ‡–ˆ‹ƒ ‹ƒŽ‹ ‘‡ƒ†‡š’‡•‡• ‘–”‹„—–‹‘ˆ”‘’”‹˜ƒ–‡‡“—‹–›ƒ –‹˜‹–‹‡•ƒ†‘–Š‡”ˆ—†• Operating E er er er n g ”• Š”ˆ‘‡ƒ‹‰‹   •Šƒ”‡‘ˆ‘’‡”ƒ–‹‰‹ ‘‡ •Šƒ”‡‘ˆ‘’‡”ƒ–‹‰‹ ‘‡ ƒˆƒ”‰‡ȋ—–‹Ž —‡͵ͲǡʹͲͳͷȌ Equity ‡”›• Consolidated –†˜† ‡–†‹˜‹†‡†   Non ‘ƒ–†˜† ‡–†‹˜‹†‡† ‘–ƒŽ    0  share share share income 5 _ E P Ǧ A consolidated: R 4     _ [SF] [SF] [SF] method POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016  2   operating contribution contribution 0  1 (loss) 6    - 1 1  - 0 5   _ v 1  . income  i n d d  

of of

E   4 the the  ŠŽ‹‰ ƒ‹•  ‘Š‘Ž†‹‰ ‘’ƒ‹‡•   main main   shareholdings shareholdings    † ƒ‹•  ‡† ‘’ƒ‹‡• “—ƒ”–‡”‘ˆʹͲͳ͸™‡”‡ƒ•ˆ‘ŽŽ‘™•ǣ ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǡƒʹǤͶΨ Šƒ‰‡Ǥ ‹‡—”‘•ǤŠ‡ƒ˜‡”ƒ‰‡̀Ȁ ‡š Šƒ‰‡”ƒ–‡‹                                 FIRST  QUARTE 84,659 (371.3) (444.9) 1.096 (4.39 2016 25.6 76.8 41.5 26.3 58.4 0.91 0.69 (3.2) (6.3) (1.6) (8.7) î R   ʹ͵Ǥ͵  ͷ͵Ǥ͹  )    ȋ͹ǤʹȌ ͺͶǡ͸ͷͻ ͳǤͲ͹Ͳ ͸Ǥʹ ͵͹Ǥ͵  ͷ͵ǤͶ    ʹͲͳͷ ͺ͸Ǥ͹ ͵ͻǤͻ 1.02 0.63 0.63 ȋ͸ǤͻȌ ȋͺǤͲȌ ʹǤͳ î      116-05-11 3:10PM 6 - 0 5 - 1 1

3 : 1 0

P M M P

0 1

PART E : 3

PARGESA HOLDING SA 1 1 - 5 0 - 6 116-05-11 3:10 PM 5 E  „—–’ƒ›ƒ„Ž‡‹ʹͲͳ͸ǡ‘–Š‡„ƒ•‹•‘ˆ–Š‡ Ž‡ǡ ‘Ž›   ‘–”‹„—–‡• –‘ –Š‡ ˆ‹”•– “—ƒ”–‡” Žƒ–‡† ‹ ™‹•• ˆ”ƒ •ǡ ™ƒ•  ʹͷǤ͸ ‹ŽŽ‹‘ǡ FUNDS ƒ”‰‡ ‘Ž ‹”‡’”‡•‡–ƒ”‰‡•ƒǯ••Šƒ”‡‘ˆ‡–  •–‘̀ͺʹǤ͹‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ǡ ‘™ Žƒ••‹ˆ‹‡†ƒ•ƒƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ˆ‹ƒ ‹ƒŽ ”‡Žƒ–‹‰–‘–Š‡•‡ˆ—†•ȋ‹ Ž—†‹‰ƒƒ‰‡‡– “—ƒ”–‡”‘™ƒ”†•Ǥ ʹͲͳ͸ǡ ™‹ŽŽˆ‘”–Š‡ˆ‹”•– „‘‘‡†‘–Š‡†ƒ–‡–Š‡›ƒ”‡ƒ‘— ‡†„›–Š‡ ‡ˆ‘”‡‘Ž‘‰‡” ‘–”‹„—–‡•–‘ƒ”‰‡•ƒǯ•‹ ‘‡Ǥ –ˆ—†• ‘‡’”‹ƒ”‹Ž›ˆ”‘‹˜‡•–‡–•Š‡Ž† ‡ˆ‘—”–Š“—ƒ”–‡”‘ˆʹͲͳͷǡ „‘‘‡†–Š‡–Š‹”†  ’ƒ –‘ˆ ǯ••ƒŽ‡‘ˆ‘–ƒŽ•Šƒ”‡•‹–Š‡ˆ‹”•– ‘ˆ–ƒš‡•ǡ ‘’ƒ”‡†™‹–ŠǦ̀ͻǤ͹‹ŽŽ‹‘‹–Š‡ˆ‹”•– Ž‡‘ˆ•Šƒ”‡•‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸Ǥ  ‘‡•–‘‘†ƒ–̀͹ʹǤͶ‹ŽŽ‹‘ǡ˜‡”•—•̀͸ͺǤͷ‹ŽŽ‹‘ –‹‘™ƒ• ͶͳǤͷ‹ŽŽ‹‘ǡ˜‡”•—• ͵͹Ǥ͵‹ŽŽ‹‘‹–Š‡ ™‹••ˆ”ƒ •ǡ™ƒ• ͹Ǥʹ‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆ ʹǤͳ‹ŽŽ‹‘‹ Ž—†‡†ƒ”‰‡•ƒǯ• ͹Ǥͻ‹ŽŽ‹‘•Šƒ”‡‘ †‹‰‹ ‘”‹• †‡Ǥ FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER HOLDINGS INVESTMENT   OTHER   AND ACCOUNTED  Ǧ ‹•’‘•ƒŽ‘ˆ‹–•ƒŒ‘”‹–›Š‘Ž  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER HOLDINGS EQUITY   ACTIVITIES  AND 5  E

d d n i . 1 v _ 5 EQUITY 0  - 1 1  -  6 1 0  CONSOLIDATED 2 Ǧ _  R A P _ 5 †‹˜‹†‡†•”‡ ‘”†‡†„› ˆ”‘–Š‡•‡ ‘’ƒ‹‡•Ǥ•ƒ‰‡‡”ƒŽ”— ‘’‡”ƒ–‹‰‹ ‘‡Ǣ–Š‡‘–Š‡”Š‘Ž†‹‰• ‘–”‹„—–‡ˆ”‘–Š‡•‡ ‘† –‹‡”‡ ‘”†–Š‡†‹˜‹†‡†”‡ ‡‹˜‡†ˆ”‘ƒˆƒ”‰‡ ‘Ž ‹ǡ™Š‹ Š‹• ƒ••‡–Ǥ –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ǡƒ”‰‡•ƒǯ••Šƒ”‡‘ˆ ǯ• ‘–”‹„— ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǤ Total ‘–ƒŽǯ• ‡‰ƒ–‹˜‡ ˆ‹”•– “—ƒ”–‡” ʹͲͳ͸ ‘–”‹„—–‹‘ ”‡ˆŽ‡ –•“—ƒ”–‡”‘ˆʹͲͳ͸Ǥ†‡”ƒ ‘—–‹‰”—Ž‡•ǡ‹–‡”‹†‹˜‹†‡†•ƒ”‡ –Š‡ ‹ „‘ƒ”†‘ˆ†‹”‡ –‘”•ƒ†‘–‘–Š‡‡ˆˆ‡ –‹˜‡’ƒ›‡–†ƒ–‡Ǥ –Š ‹–‡”‹ †‹˜‹†‡† ˆ‘” ʹͲͳͷǡ ™Š‹ Š ™ƒ• ƒ‘— ‡† ‹—„‡”‘ˆ•Šƒ”‡•Š‡Ž†ƒ–‡ ‡„‡”͵ͳǡʹͲͳͷǡ‹Ǥ‡Ǥǡ„‡ˆ‘”‡–Š‡•ƒ  –‘„‡” ʹͲͳͷ PRIVATE ‘–”‹„—–‹‘•ˆ”‘’”‹˜ƒ–‡‡“—‹–›ƒ –‹˜‹–‹‡•ƒ†‘–Š‡”‹˜‡•–‡ „› –Š”‘—‰Š‹‡ƒƒ’‹–ƒŽǡƒ•™‡ŽŽƒ•ˆ”‘‰‡‡”ƒŽ‡š’‡•‡• ˆ‡‡•ȌǤ –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǡ–Š‡‡– ‘–”‹„—–‹‘‘ˆ –Š‡‰ƒ‹”‡ƒŽ‹•‡†„› ‘–Š‡†  Š‡Š‘Ž†‹‰‹ƒˆƒ”‰‡™ƒ•†‡ ‘•‘Ž‹†ƒ–‡†‹ —Ž›ʹͲͳͷƒ†–Š‡” NON Š‡ ‘–”‹„—–‹‘• ˆ”‘ ‘–ƒŽǡ  ǡ ‰‹‡ǡ ‡”‘† ‹ ƒ”† ƒ† ƒˆ SGS  CONSOLIDATED Imerys ‡”›•”‡ ‘”†‡†ƒͷǤͺΨ”‹•‡‹‡–‹ ‘‡ˆ”‘ —””‡–‘’‡”ƒ–‹‘ ‘’ƒ”‡†™‹–Š̀͹ͺǤʹ‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǤ‡–‹ ƒ›‡ƒ”‡ƒ”Ž‹‡”ȋƒˆ–‡”‘Ǧ”‡ —””‹‰‹–‡•‘ˆǦ̀ͳͲǤ͵‹ŽŽ‹‘‡– ‘’ƒ”‡†™‹–Š ʹ͵Ǥ͵‹ŽŽ‹‘ƒ›‡ƒ”‡ƒ”Ž‹‡”Ǥ Lafarge ƒ”‰‡•ƒǯ••Šƒ”‡‘ˆƒˆƒ”‰‡ǯ•‡–‘’‡”ƒ–‹‰Ž‘••ǡ–”ƒ•Žƒ–‡†‹ ʹͲͳͷǤ “—ƒ”–‡” ‘ˆ ʹͲͳͷȌǤ ƒ”‰‡•ƒǯ• •Šƒ”‡ ‘ˆ ‡”›•ǯ• ‡– ‹ ‘‡ǡ –”ƒ• 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E5 PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E6 C C

_ PART E Q

U PARGESA HOLDING SA A T 1 _    ‹”•–“—ƒ”–‡”ʹͲͳͷ‘Ǧ‘’‡”ƒ–‹‰‹ ‘‡ˆ”‘Š‘Ž†‹‰ ‘’ƒ‹‡•    –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ǡ‘Ǧ‘’‡”ƒ–‹‰Ž‘••ˆ”‘Š‘Ž†‹‰  ͵ͻǤͻ‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǤ ‹ ‘‡ ‘Ǧ‘’‡”ƒ–‹‰ ‘ˆ ƒ‘—– ‡– Š‡ ‘Ǧ‘’‡”ƒ–‹‰‹ ‘‡‘ˆ ‡”›•ƒ†ǡ‹ʹͲͳͷǡƒˆƒ”‰‡Ǥ ‘Ǧ‘’‡”ƒ–‹‰‹ ‘‡ȀŽ‘••ˆ”‘ ‘•‘Ž‹†ƒ–‡†‘”‡“—‹–›Ǧƒ ‘—–‡† NON –Š‘•‡‘ˆ Ǥ Š‡‰‡‡”ƒŽ‡š’‡•‡•ƒ†–ƒš‡•Ž‹‡‹–‡”‡’”‡•‡–•ƒ”‰‡•ƒǯ•‰ GENERAL •Šƒ”‡•†—”‹‰–Š‡’‡”‹‘†Ǥ Š‡’‘•‹–‹˜‡ƒ‘—–”‡ ‘”†‡†‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸’”‹ƒ ƒ‘—–‘ˆ ͵ͺǤͲ‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳ͸ǡ ‘’ƒ”‡† ƒ”‰‡•ƒǯ••Šƒ”‡‘ˆ–Š‡ƒ”‹‰–‘ƒ”‡–‘ˆ–Š‡•‡‹’Ž‹ ‹–Ž›‡ ‹’Ž‹ ‹–Ž›‡„‡††‡†‹–Š‡‡š Šƒ‰‡ƒ„Ž‡ƒ† ‘˜‡”–‹„Ž‡„‘†•‹ ‘ˆ “—ƒ”–‡”‘ˆʹͲͳͷǤ –‹ Ž—†‡• ǯ•ƒ”‹‰–‘ƒ”‡–ǡƒ––Š‡‡ “—ƒ”–‡” ˆ‹”•– –Š‡ ‹ ‹ŽŽ‹‘  ʹ͸Ǥ͵ –‘ ƒ‘—–‡† – ‡š’‡•‡•Ǥ ‡–ˆ‹ƒ ‹ƒŽ‹ ‘‡ƒ†‡š’‡•‡•‹ Ž—†‡•‹–‡”‡•–‹ ‘‡ƒ† NET  E n g

0 ‘ˆ–Š‡•Šƒ”‡ ƒ’‹–ƒŽ‘ˆ—‡œǡ–‘„‘†Š‘Ž†‡”•™Š‘‡š‡” ‹•‡†–Š‡‹ Ž‡˜‡Ž‘ˆƒ”‰‡•ƒȌ‘–Š‡†‡Ž‹˜‡”›‘ˆͳǤ͹‹ŽŽ‹‘—‡œ•Šƒ”‡•ȋˆ ƒ”‰‡•ƒǯ• ͷǤͲ‹ŽŽ‹‘•Šƒ”‡‘ˆ–Š‡‡–‰ƒ‹ȋ‹ Ž—†‹‰ƒŠ‹• ‘ˆ •ƒŽ‡ ǯ• ˆ”‘ ‹ ‘‡ –Š‡ Š‹•–‘”‹ ƒŽ‡š Šƒ‰‡Ǧ”ƒ–‡‰ƒ‹‘ˆ ͳͳǤʹ‹ŽŽ‹‘ƒ––Š‡Ž‡˜‡Ž‘ˆ ‘ˆ •Šƒ”‡ ‹ŽŽ‹‘  ͵ͶǤ͸ ƒ”‰‡•ƒǯ• ƒ”‰‡•ƒǯ• ͵ͻͺǤͺ‹ŽŽ‹‘•Šƒ”‡‘ˆ–Š‡ ƒ’‹–ƒŽ‰ƒ‹”‡ ‘”†‡†„› •–ƒ–‡‡–Ǥ • ‘ Ž † Ȍ”‹•‡‹–Š‡•Šƒ”‡’”‹ ‡™‹ŽŽ„‡”‡ ‘”†‡††‹”‡ –Ž›‹‡“—‹–›ƒ† ǡ ™ Š ‹ Ž’”‡••”‡Ž‡ƒ•‡‘ˆƒ” ŠͳͺǡʹͲͳ͸Ǥ•–Š‡Š‘Ž†‹‰‹• Žƒ••‹ˆ‹‡†ƒ ‡ ƒ  –Š‡”‡ˆ Šƒ† › – ̀͸͸ǤͶͻǤ ˆ ‘ˆ Dz•‹‰‹ˆ‹ ƒ–dz†‡ Ž‹‡‹–Š‡•Šƒ”‡’”‹ ‡ǡ™Š‹ Š”‡•—Ž–‡†‹ƒ — ˜ƒŽ—‡ „‘‘ ” ‹–• – „‡Ž‘™ ͵ͲΨ Š –Šƒ ‘”‡ ‡™ƒ• ” † ‡ ‹’ƒ‹”‡ ‹ŽŽ‹‘ Ž ̀ͳǡͶͶ͵ ƒˆƒ”‰‡ ‘Ž ‹ǡ‹ƒ ‘”†ƒ ‡™‹–Š Ǥ–ƒ” Š͵ͳǡʹͲͳ͸ǡ–Š‡ ‹ –Š‡ ‘ˆ  •Šƒ”‡ ‡ ‹ŽŽ‹‘ ™ Ǧ ͺͳͺǤ͵ ‹ƒ”‰‡•ƒǯ• Ž Ž Ž ‡ ƒ † – ‘ ƒ  ƒ † † ‹ – ‹ ‘  ƒ Ž ‹  ’  Šˆ”– —”‡‘ʹͳǡ Ž†ƒŠ•‘‹ƒ‡š Šƒ‰‡Ǧ Š‹•–‘”‹ ƒŽ ƒ ƒ”‰‡•ƒǤ ‹ Ž—†‹‰ ʹͲͳ͸ǡ ‘ˆ “—ƒ”–‡” ˆ‹”•– –Š‡ ‹ ˆ—”–Š‡”‹’ƒ‹”‡–‘ˆ ʹͷǤʹ‹ŽŽ‹‘‘ ǯ•Š‘Ž†‹‰‹‰‹ 5 _ E  P Ǧ FINANCIAL A OPERATING R 6 _ POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0 1 6  - 1 EXPENSES 1 - 0 5 _ v 1 . i n  d INCOME d 

INCOME

E 6  AND  AND  TAXES 

 EXPENSES  Ž•ˆ‘ŠŽ‹‰ ‘’ƒ Š‘Ž†‹‰ ˆ”‘ ȀŽ‘••  ‘’ƒ‹‡•ƒ‹Ž› ‘•‹•–‡†‘ˆǣ ‹’ƒ‹”‡–„‡‹‰”‡ ‘‰‹œ‡†ǡƒ•ƒ‘— ‡†‹–Š‡ ‘”‡”Ž›—‡œ˜‹”‘‡‡–Ȍǡ”‡’”‡•‡–‹‰ͲǤͶΨ ƒ”‰‡•ƒǤ „‡††‡††‡”‹˜ƒ–‹˜‡‹•–”—‡–•”‡’”‡•‡–‡†ƒ‡– Ͳ͸ ƒ‡™–͸ʹ ‹Ž‘‹–‡ ˆ‹”•– –Š‡ ‹ ‹ŽŽ‹‘  ͸Ǥʹ ™‹–Š ‘’ƒ”‡† ʹͲͳ͸ǡ  ™‹–Š ͳͲǤͻ‹ŽŽ‹‘‹–Š‡ˆ‹”•–“—ƒ”–‡”‘ˆʹͲͳͷǤ ‘–‹–Š‡‹ ‘‡•–ƒ–‡‡–ȋ—Ž‡••–Š‡ƒ••‡–‹• ‡‡”ƒŽ‡š’‡•‡•ƒ†–ƒš‡•ƒ•™‡ŽŽƒ•‹–••Šƒ”‡‘ˆ ••—‡†„› Ǥ –‘”‹ ƒŽ‡š Šƒ‰‡Ǧ”ƒ–‡‰ƒ‹‘ˆ ͵ǤͲ‹ŽŽ‹‘ƒ––Š‡ •ƒƒ˜ƒ‹Žƒ„Ž‡Ǧˆ‘”Ǧ•ƒŽ‡ˆ‹ƒ ‹ƒŽƒ••‡–ǡƒ›ˆ—–—”‡ ”‹Ž›”‡ˆŽ‡ –•–Š‡†”‘’‹’”‹ ‡•‘ˆ–Š‡—†‡”Ž›‹‰ †‘ˆ‡ƒ Š’‡”‹‘†ǡ‘ˆ–Š‡†‡”‹˜ƒ–‹˜‡‹•–”—‡–• ”‡š Šƒ‰‡”‹‰Š–•‡ƒ”Ž›Ǥ ‡š’‡•‡•ƒ•™‡ŽŽƒ•‘–Š‡”ˆ‹ƒ ‹ƒŽ‹ ‘‡ƒ†  ‘–Š‡•ƒŽ‡‘ˆͳǤͳΨ‘ˆ‘–ƒŽǯ••Šƒ”‡ ƒ’‹–ƒŽ ƒ‹Ž› ‘•‹•–‡†‘ˆǣ ‡Ǥ ƒˆƒ”‰‡ ‘Ž ‹•Šƒ”‡’”‹ ‡™ƒ•̀ͶͳǤʹͺǡ™Š‹ Š  ‘’ƒ‹‡• ‘’”‹•‡•ƒ”‰‡•ƒǯ••Šƒ”‡‘ˆ–Š‡ ƒ‡ ƒ ˆ ͷǤŽ‹ – ŠŽ˜Ž ‘ˆ Ž‡˜‡Ž –Š‡ ƒ– ‹ŽŽ‹‘  ͳͷͷǤʹ ‘ˆ ‰ƒ‹ ”ƒ–‡ ‹„‹‰ ‡‘œ†  Š‹ ‘‡ –Š‡ ‹ ”‡ ‘‰‹œ‡† „‡‹‰ ƒ‹”‡– ‡™• ͶͶͻ ‹Ž‘ǡ ‘’”† ™‹–Š ‘’ƒ”‡† ‹ŽŽ‹‘ǡ Ȃ ͶͶͶǤͻ ™ƒ• ‹‡• –”‡ ‘‰‹œ‡†„› ‘‹–•Š‘Ž†‹‰‹ ǤŽ‹ ‘ƒ•ƒ‡ǡ Ž†ƒ ‹ Ž—†‹‰ •Šƒ”‡•ǡ ‘–ƒŽ ‹ŽŽ‹‘ ͳǤͺ  ” ‘•† Š–”•‘† Š– ƒƒ ƒ”• –Šƒ– –Š”‡•Š‘Ž† –Š‡ ”‘••‡† ‘”‡ 116-05-11 3:10PM 6 - 0 5 - 1 1

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PARGESA HOLDING SA 1 1 - 5 0 - 6  116-05-11 3:10 PM ȋͷǤ͹Ȍ ȋͷǤ͹Ȍ 1.02 ͺ͸Ǥ͹ ͺ͵Ǥ͹ ͹ͳǤͺ ʹͲͳͷ ȋ͵ʹǤ͵Ȍ 7 ͳʹʹǤ͹ ͳͺͳǤ͵ ͳǤͲ͹Ͳ ʹͲͻǤͶ ͺͶǡ͸ͷͻ ͳǡͳ͵ͺǤ͹ ȋͳǡͲͶͳǤͳȌ E      )    R 7.5 63.1 33.2 2016 (4.39 (40.0) 1.096 (371.3) (302.6) (859.1) (737.7) (673.9) 84,659 1,243.8 (1,122.4) QUARTE  FIRST                                ‘•‘Ž‹†ƒ–‡†ˆ‹‰—”‡•ˆ‘”ƒ”‰‡•ƒǡ ƒ† IFRS ‡”ƒ–‹‰‡š’‡•‡•‘ˆ ‡”›•ǡ™Š‘•‡ƒ ‘—–• –‘‰‡–Š‡”™‹–Š–Š‡ ƒ’‹–ƒŽ‰ƒ‹”‡ ‘”†‡†‘ •™‹ŽŽ„‡”‡ ‘”†‡†ˆ”‘–Š‡•‡ ‘†“—ƒ”–‡”  ”‹•‡•–Š‡‡–†‹˜‹†‡†•”‡ ‘”†‡†„›–Š‡‰”‘—’ •ƒ ‘—–‡†ˆ‘”—•‹‰–Š‡‡“—‹–›‡–Š‘†—–‹Ž –•—•‹‰–Š‡‡“—‹–›‡–Š‘†Ǥ ʹͲͳͷǡ–Š‹•Ž‹‡ •Šƒ”‡‘ˆ–Š‡ ‘•‘Ž‹†ƒ–‡†‡–’”‘ˆ‹– ‘–”‹„—–‡† “—ƒ”–‡”‘ˆʹͲͳ͸ǡ–Š‹•Ž‹‡‹–‡ƒ‹Ž› ‘’”‹•‡† ƒ•™‡ŽŽƒ•‹’ƒ‹”‡–•ƒ†”‡˜‡”•ƒŽ•‘ˆ’”‡˜‹‘—• ‡†—‡–‘–Š‡‹‘”‹–›•Šƒ”‡Š‘Ž†‡”•‘ˆ ƒ† ‹’ƒ –‘ˆ ǯ•†‡”‹˜ƒ–‹˜‡ˆ‹ƒ ‹ƒŽ‹•–”—‡–• ƒ”‰‡•ƒ‰”‘—’ˆ‹ƒ ‹ƒŽ•–ƒ–‡‡–•Ǥ ‘ŽŽ‘™•ǣ ʹͲͳ͸ǡ–Š‹•‹–‡‹ Ž—†‡†–Š‡ ƒ—ƒŽ†‹˜‹†‡† WITH ‡”‘ˆʹͲͳͷǡ–Š‹•Ž‹‡‹–‡ƒ‹Ž›‹ Ž—†‡†–Š‡ ƒ’‹–ƒŽ  FIRST QUARTER REPORT 2016 REPORT FIRST QUARTER  [SF]  ACCORDANCE  shareholders  IN  ȏ‰”‘—’•Šƒ”‡Ȑ  Pargesa  to  POWER CORPORATION OF CANADA — OF CANADA CORPORATION POWER RESULTS ȏ‹ Ž—†‹‰‹‘”‹–›‹–‡”‡•–•Ȑ  OF shareholders  (loss)   attributable 7   E

d d n profit i share  . (loss)   1 Pargesa v  _ per net 5   to 0  - 1  profit 1  - 6 1 0 2 _ earnings  R A P _ ttributable 5 ˜‡”ƒ‰‡—„‡”‘ˆ•Šƒ”‡•‹ ‹” —Žƒ–‹‘ȏ‹–Š‘—•ƒ†•Ȑ —‡͵ͲǡʹͲͳͷǤ Š‡‹–‡‹‘”‹–›‹–‡”‡•–•ƒ‹Ž›”‡Žƒ–‡•–‘–Š‡•Šƒ”‡‘ˆ‹ ‘ ‡”›•ǡ–Š‡•‡–™‘ ‘’ƒ‹‡•„‡‹‰ˆ—ŽŽ› ‘•‘Ž‹†ƒ–‡†‹–‘–Š‡  ̀Ȁ ƒ˜‡”ƒ‰‡‡š Šƒ‰‡”ƒ–‡ Š‡ ‘–Š‡” ˆ‹ƒ ‹ƒŽ ‹ ‘‡ ƒ† ‡š’‡•‡• ƒ† –ƒš‡• ‹–‡• ’”‘˜‹†‡ ‡”›•ǤŠ‡ˆ‹”•–‘ˆ–Š‡•‡–™‘Ž‹‡‹–‡•‹ Ž—†‡•–Š‡‘Ǧ ƒ•Š „‡‹‰ƒ”‡†–‘ƒ”‡–Ǥ  ‘‡ȋŽ‘••Ȍˆ”‘ƒ••‘ ‹ƒ–‡•ƒ†Œ‘‹–˜‡–—”‡•”‡’”‡•‡–•–Š‡ „›•Šƒ”‡Š‘Ž†‹‰•ƒ ‘—–‡†ˆ‘”‹–Š‡ƒ”‰‡•ƒˆ‹ƒ ‹ƒŽ•–ƒ–‡‡ ‹–‡™ƒ• ‘’‘•‡†’”‹ƒ”‹Ž›‘ˆƒˆƒ”‰‡ǯ• ‘–”‹„—–‹‘ǡ™Š‹ Š™ƒ ––”‹„—–ƒ„Ž‡–‘‹‘”‹–›‹–‡”‡•–• A Basic ’‡”ƒ–‹‰‹ ‘‡ƒ†‡š’‡•‡•ƒ”‡’”‹ƒ”‹Ž›–Š‡”‡˜‡—‡•ƒ†‘’  PRESENTATION Š‡•‹’Ž‹ˆ‹‡†‹ ‘‡•–ƒ–‡‡–‹ƒ ‘”†ƒ ‡™‹–Š ‹•ƒ•ˆ ȏ‹‹ŽŽ‹‘•‘ˆ™‹••ˆ”ƒ •Ȑ ȏ—ƒ—†‹–‡†Ȑ ’‡”ƒ–‹‰‹ ‘‡ ’‡”ƒ–‹‰‡š’‡•‡• –Š‡”‹ ‘‡ƒ†‡š’‡•‡• Operating ‹˜‹†‡†•ƒ†‹–‡”‡•–ˆ”‘Ž‘‰Ǧ–‡”‹˜‡•–‡–• ƒ”‡ˆ—ŽŽ› ‘•‘Ž‹†ƒ–‡†Ǥ –Š‡”‹ ‘‡ƒ†‡š’‡•‡•‹ Ž—†‡•‡– ƒ’‹–ƒŽ‰ƒ‹•ƒ†Ž‘••‡• ‹’ƒ‹”‡–•‘‰”‘—’•Šƒ”‡Š‘Ž†‹‰•ƒ†‘’‡”ƒ–‹‘•Ǥ –Š‡ˆ‹”•– –Š‡ ‹’ƒ‹”‡– ”‡ ‘”†‡† „›  ‘ ‹–• Š‘Ž†‹‰ ‹ ǯ••ƒŽ‡‘ˆͳǤͳΨ‘ˆ‘–ƒŽǯ••Šƒ”‡ ƒ’‹–ƒŽǤ –Š‡ˆ‹”•–“—ƒ”– ƒˆƒ”‰‡ ‘Ž ‹ǡ ‰ƒ‹”‡ ‘”†‡†‘ ǯ••ƒŽ‡‘ˆͲǤͳΨ‘ˆ‘–ƒŽǯ••Šƒ”‡ ƒ’‹–ƒŽǤ Š‡†‹˜‹†‡†•ƒ†‹–‡”‡•–ˆ”‘Ž‘‰Ǧ–‡”‹˜‡•–‡–•‹–‡ ‘’ ˆ”‘‹–•‘Ǧ ‘•‘Ž‹†ƒ–‡†‹˜‡•–‡–•Ǥ –Š‡ˆ‹”•–“—ƒ”–‡”‘ˆ ”‡ ‡‹˜‡† „› ǡ ™Š‹Ž‡ ‘•– ‘ˆ –Š‡ †‹˜‹†‡†•‘™ƒ”†•Ǥ ˆ”‘ ‘–Š‡” Š‘Ž†‹‰ –Š‡”ˆ‹ƒ ‹ƒŽ‹ ‘‡ƒ†‡š’‡•‡• Consolidated  ‘‡ȋŽ‘••Ȍˆ”‘ƒ••‘ ‹ƒ–‡•ƒ†Œ‘‹–˜‡–—”‡• ƒš‡• 0 g n E _ 1 T A U Q _ C C PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E7 PPCC_QUAT1_Eng05_PAR_2016-11-05_v1.indd E8 C C

_ PART E Q

U PARGESA HOLDING SA A T 1 _  —„ƒ–‘” Ȁ ‡ ƒ‰ƒ‡ Ǥͻ ͳǤͲͻͳ    ̀Ȁ ‡š Šƒ‰‡”ƒ–‡ Total ‹ƒ ‹ƒŽ’‹ŽŽƒ” ‘ƒͳ͵Ͳ͹ͶǤ Ͳͻ ͳͷ ͳͶ ͹ͲͶ ͳͺ ͳ͹ ͳǡͳͻͶ ̀ ͶͲǤͳ ͳǡͲ͸Ͷ ͳǡͶ͵͵ ͳǡʹͺͻ  ʹǡͲ͵ʹ ̀ ͻͺǤͲ ͲǤ͹ ̀ ͸ͳǤ͵ ̀ ͶͳǤ͵ ’‡”•Šƒ”‡‘’”‹ŽʹͻǡʹͲͳ͸Ǥ ͹Ǥͷ ƒ”‰‡•ƒǯ•ˆŽ‘™Ǧ–Š”‘—‰Šƒ†Œ—•–‡†‡–ƒ••‡–˜ƒŽ—‡‹•’—„Ž‹•Š‡†‡˜ ͵Ǥͺ ͳǤ͵ ʹ͸Ǥͻ ͶǤ͹ ͳͷǤͲ ȋͳȌ ͹Ǥͷ p ͷ͵Ǥͺ ͻǤͶ A ‡– ƒ•Šȋ†‡„–Ȍ –”‡ƒ•—”›ƒ••‡–• ‰‹‡ ‘–ƒŽ ‡”‘†‹ ƒ”†   ƒˆƒ”‰‡ ‘Ž ‹ ‡”›• ȏ—ƒ—†‹–‡†Ȑ ȏ‹‹ŽŽ‹‘•‘ˆ™‹••ˆ”ƒ •Ȑ  •ƒ–ƒ” Š͵ͳǡʹͲͳ͸ Pargesa’s Ž –Š‡ ˆ‘” ”ƒ–‡• ‡š Šƒ‰‡ ƒ† ˜ƒŽ—‡• ƒ”‡– —””‡– –Š‡ ‘ˆ „ƒ•‹• ƒ”‰‡•ƒǯ•ˆŽ‘™Ǧ–Š”‘—‰Šƒ†Œ—•–‡†‡–ƒ••‡–˜ƒŽ—‡™ƒ• ͻͳǤͺ’‡” ADJUSTED  ‹˜‡•–‡–•Ǥ –‹•„”‘‡†‘™ƒ•ˆ‘ŽŽ‘™•ǣ ‘•‘Ž‹†ƒ–‡†•Šƒ”‡Š‘Ž†‡”•ǯ‡“—‹–›ȋ‘”ˆƒ‹”˜ƒŽ—‡ˆ‘”’”‹˜ƒ–‡‡“ E er n djusted Š‡’‡” ‡–ƒ‰‡‘ˆ‰‹‡ ƒ’‹–ƒŽ‹ Ž—†‡••Šƒ”‡•Š‡Ž†ƒ•–”‡ƒ•— g ‡ͳǤ Ǥ ͷʹ ͸ ͻ ͳͷͻ Ͷͷͷ ͹ʹ͵ ͸Ǥͺ ͺǤͷ ͵Ǥͳ ͳ͵Ǥͷ ͳ͹ǤͲ ͸Ǥͳ –Š‡” –‡š ‹ ‘”‡ †‹†ƒ•  †‹˜‹†‡†•”‡ ‡‹˜‡†‹ 0 Pargesa 5 _ ȋͳȌ  E P portfolio A Ǥ Ǥ ͵͸̀ ͳ͵Ǥ͸ ͳǤʹ ʹǤ͵  R 8  _  flow net POWER CORPORATION OFCANADA — FIRST QUARTER REPORT 2016 2 0  share 1 6  asset - Ǧ 1 through 1  -  0  NET 5 _  v value 1 . i n ’”‹‘”’‡”‹‘†•Ǥ  d adjusted  d ASSET



E 8  net  VALUE  asset  value     Ψ  ͹ǡ͹͹ͳͳͲͲ › ‡–‡–ȋǤΨ ˆ ‹ǯ•ƒ‡ ƒ‹ƒȌ ‡—–ˆ‘• ˆ”‘ ”‡•—Ž–‹‰ ƒ’‹–ƒŽȌ •Šƒ”‡ ‰‹‡ǯ• ‘ˆ ȋͲǤͳΨ ‹˜‡•–‡–• ”›    Ψ —‹–›ˆ—†•Ȍƒ† —””‡–‡š Šƒ‰‡”ƒ–‡•ˆ‘”—Ž‹•–‡† ‡”›™‡‡‘–Š‡ ‘’ƒ›ǯ•™‡„•‹–‡Ǥ –™ƒ• ͻ͸Ǥͳ •Šƒ”‡ƒ–ƒ” Š͵ͳǡʹͲͳ͸Ǥ –‹• ƒŽ —Žƒ–‡†‘–Š‡ •‡•ƒ‡‘†•ƒ†  Š„‘˜Ž‡ ‘ˆ ˜ƒŽ—‡ „‘‘ –Š‡ ‘ ƒ† •Šƒ”‡Š‘Ž†‹‰•ǡ ‹•–‡†    Ƭ 61.3     SF      Ǧ ǡͳͳͲ͵ ͺǡͲͳ͵ Ͷͺȋ͸Ȍ ȋͶ͹ͺȌ 91. ͵͵ ʹ͵͸ Ͳͷ ͶͲ͹ ͷ͸ ʹ Ͷͷͻ ͳʹ͸ 8      Ψ  Šƒ”‡ 116-05-11 3:10PM 6 - 0 5 - 1 1

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P M Corporate Information

POWER CORPORATION OF CANADA

 Victoria Square Montréal, Québec, Canada HY J  

 Bay Street, Suite  Toronto, Ontario, Canada MJ S www.powercorporation.com

This document is also available on the Corporation’s website Transfer Agent and Registrar and on SEDAR at www.sedar.com. Computershare Investor Services Inc.

Stock Listings O ces in: Montréal, Québec; Toronto, Ontario; Shares o Power Corporation o Canada are listed on the Vancouver, British Columbia Toronto Stock Exchange: www.investorcentre.com

Subordinate Voting Shares: POW Participating Pre erred Shares: POW.PR.E Shareholder Services First Pre erred Shares  Series: POW.PR.F First Pre erred Shares, Series A: POW.PR.A Shareholders with questions relating to the payment o First Pre erred Shares, Series B: POW.PR.B dividends, change o address and share certi cates should First Pre erred Shares, Series C: POW.PR.C contact the Trans er Agent: First Pre erred Shares, Series D: POW.PR.D Computershare Investor Services Inc. First Pre erred Shares, Series G: POW.PR.G Shareholder Services  University Avenue, th Floor Toronto, Ontario, Canada MJ Y Telephone:  toll ree in Canada and the U.S. or  www.computershare.com

Power Corporation o Canada has been designated “A Caring Company” by Imagine, a national program to promote corporate and public giving, volunteering and WE SUPPORT support in the community.

To learn more about the organizations we support, visit www.PowerCorporationCommunity.com

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