Power of Canada : Quarterly document 2022 (bpcc 2025 q4 eng sKseHHK)

Published: 2026-04-20 14:59:07 ET POW.TO

Published on 04/20/2026 at 02:59 pm EDT

ANNUAL

Power Corporation of Canada

‌T A B L E O F C O N T E N T S

PART B / GREAT-WEST LIFECO INC.

This document contains management's discussion and analysis of the financial condition, financial performance and cash flows of Power Corporation of Canada (the Corporation) for the twelve-month and three-month periods ended December 31, 2025 and the audited consolidated financial statements of the Corporation as at and for the year ended December 31, 2025. This document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada and is available under the Corporation's profile on SEDAR+, at https://www.sedarplus.ca.

PART A / POWER CORPORATION OF CANADA

Power Corporation of Canada

PA R T A

Great-West Lifeco Inc.

PA R T B

IGM Financial Inc.

PART C / IGM FINANCIAL INC.

PA R T C

POWER CORPORATION OF CANADA 1

The trademarks contained in this report are owned by Power Corporation of Canada or by a Member of the Power Corporation Group of Companies®. Trademarks that are not owned by Power Corporation are used with permission.

2 POWER CORPORATION OF CANADA

‌Power Corporation of Canada‌

PA R T A

PART A / POWER CORPORATION OF CANADA

Management's Discussion and Analysis

P A G E A 2

Financial Statements and Notes

P A G E A 9 8

POWER CORPORATION OF CANADA A 1

PART A / POWER CORPORATION OF CANADA

Abbreviations used throughout this Management's Discussion and Analysis (MD&A) are defined in the section "Abbreviations".

CAUTIONARY STATEMENT REGARDING FORWARD- LOOKING STATEMENTS

Certain statements in this MD&A, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' current expectations as disclosed in their respective MD&A. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries including the outlook for North American and international economies for the current fiscal year and subsequent periods, the Corporation's NCIB commenced in 2026, statements concerning deferred taxes, the fintech strategy, fundraising activities and investment strategies of the investment platforms, capital commitments by the Power group and third parties, the expected timing and impact of SHMI's investment in Unigestion, GBL's strategy to simplify its portfolio and expected impact of its partial divestment of GBL Capital's portfolio, and of its sale of Sienna Gestion, Sienna Private Credit and Sienna Real Estate, GBL's expected dividend, the expected impacts of GBL's and Baird's investment in SHMI, and the Corporation's subsidiaries' disclosed expectations including Lifeco's NCIB and the Corporation's participation therein, and its business transformation and other costs. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government administrations, regulation, legislation and policies, changes in tax laws, the impacts of trade relations, ongoing trade tensions and fiscal policy developments, geopolitical tensions and related economic impacts, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors, as well as the risks referenced in the section entitled "Risk Management" herein and in the section entitled "Risk Factors" of the Corporation's most recent Annual Information Form, and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this MD&A, the factors identified by such subsidiaries in their respective MD&A.

The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, and that strategic transactions, acquisitions, divestitures or other growth or optimization strategies will be completed on expected terms, including that any required approvals will be received when and on such terms as are expected, as well as other considerations that are believed to be appropriate in the circumstances. Other considerations also include the availability of cash to complete purchases under the NCIB, that the list of risks and uncertainties in the previous paragraph, collectively, are not expected to have a material impact on the Corporation, and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this MD&A, that the risks identified by such subsidiaries in their respective MD&A and Annual Information Form are not expected to have a material impact on the Corporation. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including this MD&A and its most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available at https://www.sedarplus.ca.

STATEMENT REGARDING NON- IFRS FINANCIAL MEASURES AND OTHER MEASURES

This MD&A contains financial measures (including ratios) that do not have a standard meaning under International Financial Reporting Standards (IFRS) Accounting Standards. Terms by which non-IFRS financial measures are identified include, but are not limited to, "adjusted net earnings from continuing operations (adjusted net earnings)", "adjusted net earnings from continuing operations per share (adjusted net earnings per share)", "adjusted net asset value", "adjusted net asset value per share", "consolidated assets under management and advisement", "consolidated assets and assets under administration" and "fee-related earnings". Management uses these financial measures in its presentation and analysis of the financial performance, financial condition and cash flows of Power Corporation, and believes that they provide additional meaningful information to readers in their analysis of the results of the Corporation. These non-IFRS financial measures may not be comparable to similar measures used by other entities. Refer to the section "Non-IFRS Financial Measures" in this MD&A for the appropriate reconciliations of these non-IFRS financial measures to measures prescribed by IFRS as well as additional details on each measure. Reconciliations of the adjusted net asset value and the holding company balance sheet are also included in the section "Adjusted Net Asset Value".

Adjusted net earnings from continuing operations (or adjusted net earnings) represents net earnings from continuing operations excluding Adjustments.

In the first quarter of 2025, the Corporation enhanced the disclosure of the components of consolidated assets and assets under administration to provide greater visibility of the assets managed within the Corporation's consolidated businesses. The comparative periods have been restated to conform with the current presentation.

This MD&A also includes other measures used to discuss activities of the Corporation, its consolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to, "assets under management", "assets under administration", "assets under management and advisement", "assets under management and advisement including strategic investments", "book value per participating share", "capital commitments", "carried interest", "fee-bearing capital", "market capitalization", "net asset value", "net carried interest", "unfunded commitments" and "weighted average management fee rate". In addition, the presentation of the holding company is used to present and analyze the financial position and cash flows of Power Corporation as a holding company. Refer to the section "Other Measures" in this MD&A for a definition of each measure.

ALL TABULAR AMOUNTS ARE IN MILLIONS OF CANADIAN DOLLARS, UNLESS OTHERWISE NOTED.

PART A / POWER CORPORATION OF CANADA

The following MD&A of Power Corporation of Canada (Power Corporation or the Corporation) (TSX: POW; POW.PR.E), a public corporation, is for the three-month and twelve-month periods ended December 31, 2025. This MD&A should be read in conjunction with the audited consolidated financial statements of Power Corporation and notes thereto for the twelve-month period ended December 31, 2025 (the 2025 Consolidated Financial Statements). Additional information relating to Power Corporation, including its Annual Information Form, may be found on the Corporation's website at https://www.powercorporation.com and on SEDAR+ at https://www.sedarplus.ca.

The Corporation's MD&A consists of three parts:

Part A - Power Corporation, presented on a consolidated basis, and including a discussion of the contribution to the holding company from Lifeco, IGM, GBL, and its alternative asset investment platforms and other investments;

Part B - Lifeco's annual MD&A, as prepared and disclosed by Lifeco in accordance with applicable securities legislation, which is also available either directly from SEDAR+ (https://www.sedarplus.ca) or from Lifeco's website (https://www.greatwestlifeco.com);

Part C - IGM's annual MD&A, as prepared and disclosed by IGM in accordance with applicable securities legislation, which is also available either directly from SEDAR+ (https://www.sedarplus.ca) or from IGM's website (https://www.igmfinancial.com).

Lifeco (TSX: GWO) and IGM (TSX: IGM) are public companies listed on the Toronto Stock Exchange. GBL is a public company listed on the Brussels Stock Exchange (EBR: GBLB). Market capitalizations reported in the following sections are at December 31, 2025 (refer to the section "Other Measures").

PART A / POWER CORPORATION OF CANADA

About the Corporation Liquidity, Capital and Risk Management

Power Corporation of Canada

Cash Flows

Group Structure

Capital Management

Table of Holdings

Risk Management

Financial Highlights

Financial Instruments and Other Instruments

Off-Balance Sheet Arrangements

Consolidated Operating Results 77 Contingent Liabilities

13 2025 Significant Developments and Transactions 77 Commitments and Contractual Obligations

17 Results of Power Corporation

18 Consolidated Statements of Earnings Accounting Policies

20 Contribution to Net Earnings and Adjusted Net Earnings 78 Summary of Critical Accounting Estimates and Judgments

81 Changes in Accounting Policies

Review of Segments and Operating Results 82 Future Accounting Changes

23 Lifeco

29 IGM Financial Other

34 GBL 82 Transactions with Related Parties

Other Components 83 Disclosure Controls and Procedures

38 Sagard and Power Sustainable 83 Internal Control over Financial Reporting

52 Other 84 Power Financial Corporation

86 Non-IFRS Financial Measures

Financial Position 88 Reconciliations of IFRS and Non-IFRS Financial Measures

55 Consolidated Balance Sheets 93 Other Measures

58 Holding Company Balance Sheets 96 Selected Annual Information

61 Adjusted Net Asset Value 97 Summary of Quarterly Results

PART A / POWER CORPORATION OF CANADA

POWER CORPORATION OF CANADA

OVERVIEW

Incorporated in 1925, Power Corporation (TSX: POW; POW.PR.E) is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. Through Power Financial, it holds a controlling interest in Lifeco and IGM and has an active fintech strategy. It also holds, jointly with the Frère Group of Belgium, a controlling interest in GBL.

Power Corporation conducts its investment activities, built upon a network of deep and long-standing relationships, to provide superior returns. Investment activities include investments in alternative asset managers, Sagard and Power Sustainable, investment funds, and interests in China resulting from more than 40 years of engagement. The Corporation aims to act as an owner with a long-term perspective and a strategic vision anchored in strong core values.

Power Corporation adheres to four overriding investing principles to pursue its objective of achieving sustainable long-term value creation in the best interests of the Corporation:

Long-term perspective;

Leading franchises with attractive growth profiles;

Strong governance oversight; and

Prudent approach to risk management.

VALU E CREATION S TRATE GY

Power Corporation's value creation strategy is focused on financial services, designed to generate long-term sustainable growth in earnings and dividends, and is based upon three key levers:

Operating company organic levers: organic growth strategies at the publicly traded operating companies;

Operating company inorganic levers: deployment and redeployment of capital; and

Power Corporation levers: actions that can be taken at the Corporation and between the Corporation and its publicly traded operating companies and investments.

Power Corporation, through its alternative asset investment platforms, continues to develop its alternative asset management businesses which build upon the investment capabilities that have been created over many years in several high-growth asset classes. The alternative asset investment platforms are focused on growing their asset management businesses through raising third-party capital and the Corporation intends to continue to provide proprietary capital to the different investment products managed by each.

Key franchises and business activities across the group

Insurance & Risk Solutions

Group Benefits

Asset Management

Wealth Management

Retirement Solutions

Asset Management

Strategic Investments:

Wealth Management

Listed Assets

Direct Private Assets Indirect Private Assets

Investment Holding

Alternative Asset Investment Platforms and Other

Wealth Management

Asset Management

PART A / POWER CORPORATION OF CANADA

The following chart reflects the economic interests held by the Corporation at December 31, 2025, which include the operating subsidiaries (Lifeco and IGM) and its interest in GBL, held through Power Financial, and interests held through the Corporation's alternative asset investment platforms.

In bold: Publicly listed holdings

Lifeco, through Canada Life, held a 3.9% interest in IGM, and IGM held a 2.4% interest in Lifeco.

Represents a 49.9% non-controlling voting interest. The interest in Northleaf is held through an acquisition vehicle in which Mackenzie held an 80% equity interest and Lifeco held a 20% equity interest.

Held through Parjointco, a jointly controlled corporation (50%). Parjointco held a 47.8% voting interest in GBL. Refer to the section "GBL" for a list of investments.

Includes a controlling interest in the Portage Ventures Funds and Wealthsimple, held through Power Financial, Lifeco and IGM.

Refer to the section "Sagard and Power Sustainable" for a list of investments held by each investment platform.

The Corporation held a 44.2% interest in SHMI, and Lifeco and GBL held interests of 11.0% and 4.9%, respectively. Refer to the section "Sagard and Power Sustainable".

The Corporation held a 73.0% interest in PSM, and Lifeco held a 20.4% interest. Refer to the section "Sagard and Power Sustainable".

PART A / POWER CORPORATION OF CANADA

As a holding company, the Corporation uses adjusted net asset value 1, which presents the fair value of the participating shareholders' equity of the holding company, to assess the value, composition and size of its investment holdings. The charts below present the composition and relative size of investment holdings within the Power group, as well as show the composition of the assets included in the adjusted net asset value and the holding company balance sheet, which are discussed in detail later in this MD&A.

TOTAL HO LDIN G COMPA N Y ASSETS

IN ADJU STED NET ASSET VALU E IN HOLD ING COMPA NY B ALANCE SHEET

Adjusted net asset value is a non-IFRS financial measure. Refer to the sections "Adjusted Net Asset Value" and "Non-IFRS Financial Measures".

Includes fintech investments held by the Corporation including investments in the Portage Ventures Funds, Portage Capital Solutions and Wealthsimple.

Includes the Corporation's cash and cash equivalents, other assets and investments held by the holding company and its investments in standalone businesses.

PART A / POWER CORPORATION OF CANADA

The Corporation holds controlling interests, through Power Financial, in Lifeco and IGM. It also has significant holdings in a portfolio of European-based global companies through its investment in GBL.

LIFECO

Great-West Lifeco Inc. (TSX: GWO), market capitalization of $61.3 billion (refer to the section "Other Measures") at December 31, 2025, is a financial services holding company that provides wealth, retirement, group benefits and insurance and risk solutions to its over 40 million customer relationships. Lifeco operates in the United States (U.S.), Canada and Europe under the brands Empower, Canada Life and Irish Life.

At December 31, 2025, Power Financial and IGM held interests of 68.7% and 2.4%, respectively, in Lifeco's common shares, representing approximately 65% of the voting rights attached to all outstanding Lifeco voting shares. The Insurance Companies Act limits voting rights in life insurance companies to 65%.

IGM FINANCIAL

IGM Financial Inc. (TSX: IGM), market capitalization of $14.5 billion at December 31, 2025, is a leading Canadian diversified wealth and asset management company supporting advisors and the clients they serve in Canada, and institutional investors globally. IGM provides a broad range of financial planning and investment management services to help approximately two million Canadians meet their financial goals. IGM's principal operating subsidiaries are wealth manager IG Wealth Management and asset manager Mackenzie Investments. IGM also holds a number of strategic investments that provide benefits to its operating subsidiaries while furthering IGM's growth prospects.

At December 31, 2025, Power Financial and Canada Life, a subsidiary of Lifeco, held interests of 62.9% and 3.9%, respectively, in IGM's common shares.

GBL

Power Financial Europe SA, a wholly owned subsidiary of Power Financial, and the Frère Group each hold a 50% interest in Parjointco. At December 31, 2025, Parjointco held a 34.2% indirect (47.8% of the voting rights) controlling interest in GBL, a Belgian holding company listed on the Brussels Stock Exchange.

GBL (EBR: GBLB), market capitalization of €10.1 billion at December 31, 2025, is an established investment holding company. As a leading and active investor in Europe, GBL is focused on long-term value creation with the support of a stable family shareholder base. GBL is focused on delivering meaningful growth by providing attractive returns to its shareholders through a combination of growth in its net asset value per share, a sustainable dividend and share buybacks.

PART A / POWER CORPORATION OF CANADA

Power Corporation continues to develop alternative asset investment platforms (investment platforms) that manage portfolios in several alternative asset classes, principally in North America and Europe. The alternative asset investment platforms offer alternative strategies to traditional long-term investment strategies. Traditional long-term investment strategies generally invest in publicly traded shares and fixed income investments, whereas the alternative asset investment strategies include venture capital, private equity, private credit as well as real estate and infrastructure. At December 31, 2025, the alternative asset investment platforms had $51.8 billion of assets under management, including unfunded commitments (refer to the section "Other Measures").

SAGARD

Sagard is a global multi-strategy alternative asset management firm active in venture capital, private equity, private credit and real estate. Sagard delivers flexible capital, an entrepreneurial culture, and a global network of investors, commercial partners, advisors, and value creation experts to its portfolio companies. Sagard also engages in private wealth management and holds strategic interests in other alternative asset management businesses. The firm has offices in Canada, the U.S., Europe and the Middle East. At December 31, 2025, Sagard had $47.4 billion of assets under management, including unfunded commitments.

The asset management business of Sagard is consolidated under Sagard Holdings Management Inc. (SHMI). The Corporation held a 44.2% controlling interest in SHMI at December 31, 2025 (50.8% at December 31, 2024). Lifeco and GBL also held interests of 11.0% and 4.9%, respectively, in SHMI at December 31, 2025.

POWER SUSTAINABLE

Power Sustainable is a sustainability-focused investment manager with offices in Canada and the U.S. Power Sustainable finances companies and projects that aim for both competitive returns and positive sustainability outcomes, and offers institutional investors exposure to alternative assets which aim to accelerate and scale sustainable solutions across multiple industries. Power Sustainable invests in companies and projects that contribute to decarbonization, sustainable cities and communities and resource efficiency, which are priorities shared by its global network of clients, asset owners, partners and employees. Power Sustainable is currently comprised of four strategies: Power Sustainable Energy Infrastructure, Power Sustainable Infrastructure Credit, Power Sustainable Lios (agri-food private equity) and Power Sustainable Decarb Private Equity. At December 31, 2025, Power Sustainable had $4.4 billion of assets under management, including unfunded commitments.

The asset management business of Power Sustainable is consolidated under Power Sustainable Manager Inc. (PSM). The Corporation held a 73.0% controlling interest in PSM at December 31, 2025 (74.7% at December 31, 2024). Lifeco also held an interest of 20.4% in PSM at December 31, 2025.

The standalone businesses include the Corporation's controlling interest in LMPG.

PART A / POWER CORPORATION OF CANADA

At December 31, 2025, the Corporation's main holdings were as follows:

% economic

Holdings

Publicly traded operating companies 1

interest Nature of investment Accounting method

Lifeco 2 68.7 Controlling interest Consolidation

IGM 3 62.9 Controlling interest Consolidation

GBL 4 17.1 Joint control Equity method

Alternative asset investment platforms

Sagard

SHMI 5

44.2

Controlling interest

Consolidation

BEX 6

45.0

Controlling interest

Consolidation

PEM 7

100.0

Controlling interest

Consolidation

HalseyPoint

40.0

Joint control

Equity method

Wealthsimple 1 8

13.9

Controlling interest

Consolidation

Portage Ventures I 1 9

63.0

Controlling interest

Consolidation

Portage Ventures II 1 10

12.4

Controlling interest

Consolidation

Portage Ventures III 11

2.4

Controlling interest

Consolidation

Portage Ventures IV 12

4.8

Controlling interest

Consolidation

Portage Capital Solutions 13

29.2

Controlling interest

Consolidation

Sagard Funds 14

various

Investment

Fair value through profit or loss

Power Sustainable

Power Sustainable Manager 15

73.0

Controlling interest

Consolidation

Power Sustainable Energy Infrastructure Partnership 16

28.3

Controlling interest

Consolidation

Potentia

100.0

Controlling interest

Consolidation

Nautilus

100.0

Controlling interest

Consolidation

Standalone businesses

LMPG 49.6 Controlling interest Consolidation

Investments held by the Corporation through Power Financial.

IGM also held a 2.4% interest in Lifeco.

Canada Life also held a 3.9% interest in IGM.

Held through Parjointco, a jointly controlled corporation (50%). Parjointco held a controlling interest in GBL.

Lifeco and GBL also held interests of 11.0% and 4.9%, respectively, in SHMI. At December 31, 2025, management of Sagard held a fully diluted interest of 17.4% in SHMI. SHMI also has a long-term incentive program pursuant to which certain key members of management have received, or will receive in the future, compensation in the form of equity of SHMI vesting over a 5-year period.

The Corporation, through Sagard U.K. Management Ltd., a wholly owned subsidiary of SHMI, currently has an exercisable option to buy an additional 5.1% equity interest in BEX.

In the third quarter of 2025, Sagard acquired the remaining interest of 62.0% in PEM.

Portage Ventures I and IGM also held interests of 9.6% and 28.9%, respectively, in Wealthsimple (see also the section "Wealthsimple" in the section "Sagard and Power Sustainable").

Lifeco and IGM also held equal interests of 18.5% in Portage Ventures I.

Power Financial held a 7.7% interest, Sagard held a 4.7% interest, and Lifeco and IGM also held equal interests of 7.7% in Portage Ventures II.

Lifeco and IGM also held interests of 9.0% and 4.0%, respectively, in Portage Ventures III.

Lifeco and IGM also held interests of 11.4% and 3.3%, respectively, in Portage Ventures IV.

Lifeco also held an interest of 27.9% in Portage Capital Solutions.

The Corporation held a non-controlling interest in various funds managed by SHMI. Lifeco and GBL also held investments in certain of these funds. Refer to the section "Asset Management Activities" in the section "Sagard and Power Sustainable" for a list of investments and the respective holdings.

At December 31, 2025, management of Power Sustainable held a 6.6% interest in PSM. Lifeco also held an interest of 20.4% in PSM. PSM also has a long-term incentive program pursuant to which certain key members of management may receive, in the future, compensation in the form of equity of PSM vesting over a 5-year period.

Lifeco also held a 12.9% interest in PSEIP.

PART A / POWER CORPORATION OF CANADA

Three months ended Twelve months ended

(in millions of dollars; except per share and as otherwise noted)

December 31,

2025

September 30,

2025

December 31,

2024

Net earnings 1

408

703

933

Net earnings from continuing operations 1

408

703

933

Adjusted net earnings from continuing operations 1 2

867

863

829

Per share - basic 1

Net earnings

0.64

1.10

1.44

Net earnings from continuing operations

0.64

1.10

1.44

Adjusted net earnings from continuing operations 3

1.36

1.35

1.28

December 31,

2025

December 31,

2024

2,572

2,743

2,572

2,792

3,400

2,971

4.01

4.23

4.01

4.31

5.31

4.58

Dividend declared (per participating share)

0.6125

0.5625

2.4500

2.2500

Dividend yield 4

3.4%

4.1%

5.0%

Total consolidated assets (in billions)

926

917

851

Total consolidated assets under management and advisement 2 (in billions)

1,433

1,403

1,259

Total consolidated assets and assets under administration 2 (in billions)

3,971

3,946

3,599

Adjusted net asset value 1 2

54,526

46,206

38,974

Participating shareholders' equity

23,082

23,501

22,930

Per share 1

Adjusted net asset value 3

85.77

72.24

60.44

Book value 5

36.31

36.74

35.56

Market capitalization 6

46,377

38,518

28,913

Share price (Subordinate Voting Shares)

Ending

72.95

60.22

44.84

72.95

44.84

High

74.91

60.30

47.89

74.91

47.89

Low

58.97

52.06

42.23

41.88

35.83

Number of participating shares outstanding

End of period

635.7

639.6

644.8

635.7

644.8

Average

637.2

641.1

645.6

640.9

648.1

Attributable to participating shareholders.

Non-IFRS financial measure. Refer to the section "Non-IFRS Financial Measures".

Non-IFRS ratio. Refer to the section "Non-IFRS Financial Measures".

Dividend yield is calculated as the annualized dividend per participating share based on the dividend declared during the reporting period divided by the share price of a Subordinate Voting Share at the end of the reporting period.

Refer to the section "Other Measures".

Represents the closing price of a Subordinate Voting Share at the end of the applicable reporting period multiplied by the aggregate of Subordinate Voting Shares and Participating Preferred Shares outstanding.

PART A / POWER CORPORATION OF CANADA

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

Lifeco 1

856

842 760

IGM 1

190

188 156

GBL

(15)

(11) 18

Effect of consolidation - Lifeco and IGM 2

(45)

(39) (6)

Publicly traded operating companies

986

980 928

December 31,

2025

December 31,

2024

3,191

2,858

685

586

(38)

(98)

(65)

3,740

3,454

Sagard and Power Sustainable

(27)

(10)

105

(71)

Standalone businesses

(5)

(2)

(5)

(14)

(64)

986

951

913

3,831

3,319

Corporate operations and Other 3

(119)

(88)

(84)

(431)

(348)

Adjusted net earnings 4 5

867

863 829

3,400

2,971

Adjustments 6

(459)

(160) 104

(828)

(179)

Net earnings 4

408

703

933

2,572

2,792

Contribution based on earnings reported by Lifeco and IGM.

Refer to the detailed table in the section "Results of Power Corporation".

Includes the contribution to adjusted net earnings from the Corporation's other investment activities, as well as corporate operations, which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the section "Corporate operations and Other" below.

Attributable to participating shareholders.

Non-IFRS financial measure. Refer to the section "Non-IFRS Financial Measures".

Refer to the detailed table of Adjustments in the section "Review of Segments and Operating Results".

PART A / POWER CORPORATION OF CANADA

In February 2026, subsequent to year-end, the Corporation announced that the current President and Chief Executive Officer (CEO), Mr. R. Jeffrey Orr will become Vice-Chair of the Corporation and will be succeeded as President and CEO by Mr. James O'Sullivan, currently President and CEO of IGM Financial, effective July 1, 2026. These leadership changes are part of a well-planned and robust succession planning process that provides continuity while building on the Power group's momentum.

Mr. Orr will stand for re-election to the Corporation's Board of directors at the Corporation's upcoming annual meeting of shareholders and is expected to continue to serve on the Boards of IGM, Lifeco and some of their subsidiaries. He is also expected to remain Chair of the Boards of IGM and Lifeco until June 30, 2026.

In 2025, the Corporation continued to maintain a strong balance sheet and a prudent amount of available cash and cash equivalents. Total capital returned to participating shareholders in 2025 exceeded $2.2 billion, including repurchases of its Subordinate Voting Shares under its NCIBs of $711 million, at an average cost per share of $57.43, and over $1.5 billion in dividends paid to participating shareholders. On March 1, 2026, the Corporation renewed its current NCIB, which is effective until the earlier of February 28, 2027 or the date on which the Corporation has purchased the maximum amount of 20 million Subordinate Voting Shares.

A number of strategic developments and transactions were completed throughout 2025, including:

$260 million after tax of business transformation and other costs, of which $73 million after tax was recorded in the fourth quarter of 2025.

PART A / POWER CORPORATION OF CANADA

On January 2, 2026, subsequent to year-end, Lifeco announced the renewal of its current NCIB commencing January 6, 2026 and terminating January 5, 2027 to purchase for cancellation up to but not more than 20,000,000 of its common shares at market prices. The renewed NCIB continues to permit Lifeco to purchase its shares from Power Financial in order for Power Financial to maintain its approximate proportionate percentage ownership in Lifeco. For additional information, refer to the section "Consolidated Financial Position - Lifeco Capital Structure" in Part B of this MD&A.

$394 million comprised primarily of a return of capital, as well as an equity sale. IGM's interest decreased from 20.5% to 17.2% due to the equity sale and adjustment to certain previously issued share-based awards which aligns Rockefeller's management with long-term equity ownership. As a result, the investment's carrying value decreased and a gain was recognized in the Consolidated Statements of Earnings, excluded from adjusted net earnings. IGM will continue to account for its investment in Rockefeller using the equity method.

PORTFOLIO S IMP LIF ICA TI ON

GBL is committed to its stated strategic priorities of (i) portfolio simplification, (ii) direct private investments and (iii) attractive shareholder returns. In 2025, GBL made progress in those strategic priorities:

GBL Capital portfolio divestments: On November 3, 2025, GBL announced the monetization of a significant portion of assets from the GBL Capital portfolio. The sale of these assets, through multiple transactions, represents a net asset value of €2.0 billion 1 and is expected to generate total proceeds of €1.7 billion. In 2025, €1.0 billion was received and a deferred payment of €0.5 billion is to be received twelve months post-closing. The majority of the transactions closed in the fourth quarter of 2025; the transaction value of this portfolio was primarily reflected in the activities of GBL in the third quarter of 2025. GBL Capital also transferred €0.6 billion of unfunded commitments and will no longer make new commitments in this strategy.1

Subsequent to year end, on February 25, 2026, GBL announced the exit of its remaining position in Umicore in the context of portfolio simplification, aligned with its key strategic priorities. GBL disposed of its remaining 8.0% interest or

19.6 million shares for total proceeds of €0.3 billion. The investment in Umicore was classified as FVOCI in accordance with IFRS 9 and therefore these disposals have no impact on GBL's net consolidated earnings.

1 As at December 31, 2024.

In 2025, the alternative asset investment platforms continued their fundraising efforts, raising total capital commitments (refer to the section "Other Measures") of $5.4 billion 1, including the following:

SAGARD

POWER SUSTAINABLE

SAGARD

INVESTMEN TS I N SHM I

The Corporation remains the controlling shareholder of SHMI subsequent to these transactions and the transactions did not have a significant impact on the consolidated financial statements.

STRATEGIC PAR TNERSH IP S BY SHMI

SHMI acquisition of BEX Capital SAS (BEX): In June 2025, SHMI completed the previously announced transaction to acquire a strategic interest in BEX, a specialized secondaries investment firm with offices in Nice and New York. Sagard's investment in BEX marks a significant step in its expansion into private equity secondaries. The agreement includes a path for Sagard to acquire all of the remaining equity of BEX on December 31, 2029. Upon closing of the transaction, the Corporation determined that it has control of BEX, through Sagard, in accordance with IFRS 10, Consolidated Financial Statements. As a result, the Corporation consolidated BEX on the date of acquisition. BEX had $3.3 billion (US$2.4 billion) of assets under management at December 31, 2025.

PART A / POWER CORPORATION OF CANADA

1 Includes commitments from the Corporation, associated companies and third parties. Refer to the section "Sagard and Power Sustainable" in the section "Review of Segments and Operating Results".

PART A / POWER CORPORATION OF CANADA

Additional investment in Performance Equity Management (PEM): In August 2025, SHMI acquired an additional 62.0% interest in PEM, increasing its economic interest to 100%, primarily in exchange for Class B shares of PEM which are expected to be settled on December 31, 2028. The acquisition of the remaining economic interest in PEM will facilitate collaboration and integration within Sagard's growing strategy in private equity investment solutions. The Corporation continues to have control of PEM, through Sagard, in accordance with IFRS 10, Consolidated Financial Statements; the transaction did not have a significant impact on the financial statements. In November 2025, PEM announced that it had rebranded as Sagard Private Equity Solutions, marking the completion of its integration into Sagard's global middle-market private equity platform.

SHMI acquisition of Unigestion Private Equity Holding SA (Unigestion) private equity business: On September 23, 2025, Sagard and Unigestion announced the combination of their middle-market private equity businesses, combining their private equity primaries, secondaries and co-investment activities. The new platform, Sagard Private Equity Solutions, which includes BEX and PEM (and excludes Sagard's direct private equity strategies), will manage over US$23 billion 1 in private equity assets and will offer an enhanced geographical reach and product scope, delivering bespoke and scalable private equity solutions across primaries, secondaries and co-investments to institutional and high-net-worth investors. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals and customary closing conditions. The Corporation, through Sagard, expects to acquire 100% of the equity of Unigestion and as such consolidate the private equity activities of Unigestion subsequent to closing of the transaction.

FINTECH INVEST MENTS

WEALTHSIMPLE

On October 27, 2025, Wealthsimple announced that it had signed a $750 million equity offering, consisting of a $550 million primary offering, as well as a secondary offering. The fundraising round was led by GIC and Dragoneer Investment Group, and included participation from new and existing investors. On October 31, 2025, the primary offering closed and the Corporation, through Power Financial, and IGM each invested $100 million. Following the transaction, the Power group's undiluted equity interest in Wealthsimple decreased to 52.4%, representing a voting interest of 57.5% and a fully diluted equity interest of 40.7% at December 31, 2025. The Corporation remains the controlling shareholder of Wealthsimple. A secondary transaction totalling $190 million closed on December 19, 2025.

1 As at June 30, 2025.

PART A / POWER CORPORATION OF CANADA

This section presents:

The "Consolidated Statements of Earnings in accordance with IFRS"; and

The contributions to Power Corporation of its operating subsidiaries (Lifeco and IGM) and GBL, which are held through Power Financial, the contribution of the Corporation's alternative asset investment platforms and standalone businesses, as well as the contribution from the corporate operations and other to the net earnings and adjusted net earnings of Power Corporation. A discussion of the contributions of each of the reportable segments and other components follows in the section "Review of Segments and Operating Results".

Adjusted net earnings is a non-IFRS financial measure. Refer to the section "Non-IFRS Financial Measures" for a description and reconciliation of IFRS and non-IFRS financial measures.

The 2025 Consolidated Financial Statements of the Corporation have been prepared in accordance with IFRS, as issued by the IASB, and are presented in Canadian dollars.

The financial statements of the Corporation include the consolidated results of Power Financial which include the results of Lifeco, IGM, Wealthsimple and the Portage Ventures Funds, which are controlled by Power Financial. Power Financial's investment in GBL is held through Parjointco. Parjointco is a holding company jointly controlled by Power Financial and the Frère Group, and is accounted for using the equity method.

The investment platforms manage and operate alternative asset investment funds in which third-party investors, the Corporation and associated companies can participate. The Corporation controls a fund when it is exposed, or has rights, to variable returns from its involvement with the fund and has the ability to affect those returns through its power to direct the relevant activities of the fund. Management of the Corporation determines whether the Corporation is a principal or an agent when the Corporation or its subsidiaries act as a fund manager and also invest in the fund. The Corporation determines that it is a principal when it has sufficient capital invested and exposure to variability of returns generated as a result of the decisions of the Corporation or its subsidiaries as a fund manager and considers the rights held by other investors, including their ability to remove the fund manager.

The Corporation's reportable segments include Lifeco, IGM Financial and GBL, which represent the Corporation's investments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect Power Corporation's management structure and internal financial reporting. The Corporation evaluates its performance based on the operating segments' contributions to earnings.

The holding company comprises the corporate activities of the Corporation and Power Financial, on a combined basis, and presents the investment activities of the Corporation. The investment activities of the holding company, including the investments in Lifeco, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holding company's assets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections "Financial Position" and "Cash Flows" present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 35 of the 2025 Consolidated Financial Statements, and reconciliations of these statements are provided throughout this MD&A.

PART A / POWER CORPORATION OF CANADA

Power Corporation's consolidated statements of earnings for the three months and twelve months ended December 31, 2025 are presented below. The Corporation's reportable segments include Lifeco, IGM and GBL, as well as the holding company. These tables reflect the contributions to the net earnings attributable to Power Corporation's participating shareholders from its reportable segments and Sagard and Power Sustainable, the Corporation's alternative asset investment platforms, which include controlled and consolidated investment funds and investments, and the Corporation's standalone businesses.

Lifeco IGM GBL

Holding company

Alternative

asset investment platforms and

Other 1

Effect of consolidation 2

Power Corporation Consolidated net earnings

December 31,

2025

September 30, December 31,

2025 2024

Insurance service result Insurance revenue Insurance service expenses Net expense from

reinsurance contracts

5,690

(4,403)

(423)

5,690

5,594

5,399

(4,403)

(4,245)

(4,145)

(423)

(471)

(415)

Total insurance service result

864

878

839

Net investment result

Net investment income (loss) 3

Net investment result from insurance activities 4

2,594

(2,009)

306

(57)

2,857

4,573

(2,009)

(3,651)

988

Total net investment result

585

306

(57)

848

922

1,033

Fee income and other revenues

2,052

1,011

512

(74)

3,501

3,371

3,201

Operating and administrative expenses

(2,130)

(673)

(60)

(1,148)

(3,917)

(3,535)

(3,500)

Financing charges

(87)

(32)

(13)

(83)

(214)

(202)

(207)

Earnings before investments in jointly controlled corporations and associates, and income taxes

1,284

315

(68)

(413)

(36)

1,082

1,434

1,366

Share of earnings (losses) of investments in jointly controlled corporations and associates

116

(195)

177

(37)

261

Earnings before income taxes

1,296

431

(195)

(68)

(236)

(73)

1,155

1,500

1,627

Income tax expense (recovery)

158

106

(7)

264

305

197

Net earnings

1,138

325

(195)

(68)

(229)

(80)

891

1,195

1,430

Attributable to

Non-controlling interests

Non-participating shareholders Participating shareholders of

Power Corporation 2

489

649

134

191

(195)

(119)

(111)

(118)

(80)

467

479

484

408

703

933

1,138

325

(195)

(68)

(229)

(80)

891

1,195

1,430

Alternative asset investment platforms and Other is comprised of the Corporation's alternative asset investment platforms, which include consolidated investment funds, as well as the investment activities held through Power Financial including Portage Ventures I, Portage Ventures II and Wealthsimple, and the Corporation's standalone businesses.

The results presented for Lifeco and IGM are as reported by each. The Effect of consolidation includes the elimination of intercompany transactions and the application of the Corporation's accounting method for investments under common ownership. The contribution from Lifeco, IGM, GBL and Alternative asset investment platforms and Other to net earnings attributable to participating shareholders of the Corporation includes the effect of consolidation, and represents the contribution to the holding company.

Includes net investment income and changes in FVPL included in the net investment result on the consolidated statements of earnings.

Includes net finance income (expenses) from insurance contracts, net finance income (expenses) from reinsurance contracts and changes in investment contract liabilities.

Lifeco IGM GBL

Holding company

Alternative asset

investment platforms and

Other 1

Effect of consolidation 2

Power Corporation Consolidated net earnings

December 31,

2025

December 31,

2024

Insurance service result Insurance revenue Insurance service expenses Net expense from

reinsurance contracts

22,321

(17,239)

(1,703)

22,321

21,214

(17,239)

(16,368)

(1,703)

(1,599)

Total insurance service result

3,379

3,247

Net investment result

Net investment income (loss) 3

Net investment result from insurance activities 4

13,705

(11,683)

1,160

(92)

14,849

12,237

(11,683)

(8,860)

Total net investment result

2,022

1,160

(92)

3,166

3,377

Fee income and other revenues

7,895

3,779

1,854

(232)

13,296

11,804

Operating and administrative expenses

(8,277)

(2,560)

(216)

(3,372)

247

(14,178)

(12,462)

Financing charges

(379)

(129)

(54)

(281)

(6)

(849)

(812)

Earnings before investments in jointly controlled corporations and associates, and income taxes

4,640

1,132

(236)

(639)

(83)

4,814

5,154

Share of earnings (losses) of investments in jointly controlled corporations and associates

309

(263)

482

(121)

462

376

Earnings before income taxes

4,695

1,441

(263)

(236)

(157)

(204)

5,276

5,530

Income tax expense (recovery)

534

334

878

929

Net earnings - continuing operations

4,161

1,107

(263)

(237)

(165)

(205)

4,398

4,601

Net loss - discontinued operations

(115)

Net gain - disposal of discontinued operations

Net earnings

4,161

1,107

(263)

(237)

(165)

(205)

4,398

4,530

Attributable to

Non-controlling interests

Non-participating shareholders Participating shareholders of

Power Corporation 2

1,540

2,621

449

658

(263)

139

(431)

(152)

(13)

(205)

1,771

1,735

2,572

2,743

4,161

1,107

(263)

(237)

(165)

(205)

4,398

4,530

PART A / POWER CORPORATION OF CANADA

Includes net investment income and changes in FVPL included in the net investment result on the consolidated statements of earnings.

Includes net finance income (expenses) from insurance contracts, net finance income (expenses) from reinsurance contracts and changes in investment contract liabilities.

As a holding company, the Corporation evaluates the performance of each segment based on its contribution to net earnings and adjusted net earnings attributable to participating shareholders. A discussion of the results of Lifeco, IGM and GBL is provided in the section "Review of Segments and Operating Results" below.

PART A / POWER CORPORATION OF CANADA

This section details the contribution to the net earnings and adjusted net earnings attributable to Power Corporation's participating shareholders from Lifeco, IGM, GBL and Sagard and Power Sustainable, the Corporation's alternative asset investment platforms, which include the contribution from controlled and consolidated investments, standalone businesses, and the corporate operations and other.

Three months ended Twelve months ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

Adjusted net earnings from continuing operations 1

Lifeco 2

856

842 760

3,191

2,858

IGM 2

190

188 156

685

586

GBL

(15)

(11) 18

(38)

Effect of consolidation - Lifeco and IGM 3

(45)

(39) (6)

(98)

(65)

986

980

928

3,740

3,454

Sagard and Power Sustainable

(27)

(10)

105

(71)

Standalone businesses

(5)

(2)

(5)

(14)

(64)

Corporate operations and Other 4

(119)

(88)

(84)

(431)

(348)

867

863

829

3,400

2,971

Adjustments 5

Lifeco 2

(135)

(47) 1

(473)

(123)

IGM 2

(2) 3

(3)

GBL

(180)

(67) −

(225)

(44)

Effect of consolidation - Lifeco and IGM

(39)

(9) 1

(31)

(9)

(341)

(125) 5

(724)

(179)

Sagard and Power Sustainable

(118)

(35) (12)

(116)

(26)

Standalone businesses

- 111

(459)

(160) 104

(828)

(179)

Net earnings from continuing operations 6

Lifeco 2

721

795 761

2,718

2,735

IGM 2

203

186 159

690

583

GBL 2

(195)

(78) 18

(263)

Effect of consolidation - Lifeco and IGM

(84)

(48) (5)

(129)

(74)

645

855

933

3,016

3,275

Sagard and Power Sustainable

(113)

(62)

(22)

(11)

(97)

Standalone businesses

(5)

(2)

106

(2)

(38)

Corporate operations and Other 4

(119)

(88)

(84)

(431)

(348)

408

703

933

2,572

2,792

Net earnings (loss) from discontinued operations - Putnam

(49)

Net earnings 6

408

703

933

2,572

2,743

Adjusted net earnings from continuing operations (adjusted net earnings) is a non-IFRS financial measure. Refer to the section "Non-IFRS Financial Measures". For a reconciliation of Lifeco, IGM, and Sagard and Power Sustainable's non-IFRS adjusted net earnings to their net earnings and the contribution to adjusted net earnings from GBL and standalone businesses, refer to the sections "Lifeco", "IGM Financial", "GBL", "Sagard and Power Sustainable" and "Standalone Businesses" in the section "Review of Segments and Operating Results" below which detail the contribution to net earnings and adjusted net earnings of each.

Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL.

See the table below for details on Effect of consolidation.

Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, as well as corporate operations, which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the section "Corporate operations and Other" below.

See the section "Adjustments" below, including details on Effect of consolidation.

Attributable to participating shareholders.

PART A / POWER CORPORATION OF CANADA

Three months ended Twelve months ended

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Earnings per share - basic 1

Adjusted net earnings from continuing operations

1.36

1.35

1.28

5.31

4.58

Adjustments

(0.72)

(0.25)

0.16

(1.30)

(0.27)

Net earnings from continuing operations

0.64

1.10

1.44

4.01

4.31

Net earnings (loss) from discontinued operations - Putnam

(0.08)

Net earnings

0.64

1.10

1.44

4.01

4.23

1 Attributable to participating shareholders.

EFFECT OF CONSOLIDAT I ON

Effect of consolidation reflects:

The elimination of intercompany transactions; and

The application of the Corporation's accounting method for investments under common ownership to the reported net earnings of the publicly traded operating companies, which include:

An adjustment related to Lifeco's investment in PSEIP, PSM and SHMI; and

An allocation of the results of the fintech portfolio, including Wealthsimple, the Portage Ventures Funds and Portage Capital Solutions, to the contributions from Lifeco and IGM based on their respective interest.

The following table summarizes the effect of consolidation on adjusted net earnings for Lifeco and IGM:

Three months ended Twelve months ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

Lifeco

(33)

(20) (11)

(53)

(48)

IGM 1

(12)

(19) 5

(45)

(17)

(45)

(39)

(6)

(98)

(65)

1 The second and third quarters of 2025 include a charge of $14 million and $38 million, respectively, related to IGM's share of the carried interest payable due to the increase in fair value of the investment held in Wealthsimple through a limited partnership managed by Sagard ($33 million in the twelve-month period ended December 31, 2024).

Q4 2025 vs. Q4 2024 and Q3 2025 2025 vs. 2024

Net earnings

$408 million or $0.64 per share, compared with $933 million or

$1.44 per share in the corresponding period in 2024, a decrease of 55.6% on a per share basis, and $703 million or $1.10 per share in the third quarter of 2025.

Net earnings from continuing operations

$408 million or $0.64 per share, compared with $933 million or

$1.44 per share in the corresponding period in 2024, a decrease of 55.6% on a per share basis, and $703 million or $1.10 per share in the third quarter of 2025.

Adjusted net earnings from continuing operations

$867 million or $1.36 per share, compared with $829 million or

$1.28 per share in the corresponding period in 2024, an increase of 6.3% on a per share basis, and $863 million or $1.35 per share in the third quarter of 2025.

$2,572 million or $4.01 per share, compared with $2,743 million or

$4.23 per share in the corresponding period in 2024, a decrease of 5.2% on a per share basis.

$2,572 million or $4.01 per share, compared with $2,792 million or

$4.31 per share in the corresponding period in 2024, a decrease of 7.0% on a per share basis.

$3,400 million or $5.31 per share, compared with $2,971 million or

$4.58 per share in the corresponding period in 2024, an increase of 15.9% on a per share basis.

Contribution to net earnings and adjusted net earnings from continuing operations from Lifeco, IGM and GBL

Contribution to net earnings from continuing operations of

$645 million, compared with $933 million in the corresponding period in 2024, a decrease of 30.9%, and $855 million in the third quarter of 2025.

Contribution to adjusted net earnings from continuing operations of $986 million, compared with $928 million in the corresponding period in 2024, an increase of 6.3%, and $980 million in the third quarter of 2025.

Contribution to net earnings from continuing operations of

$3,016 million, compared with $3,275 million in the corresponding period in 2024, a decrease of 7.9%.

Contribution to adjusted net earnings from continuing operations of $3,740 million, compared with $3,454 million in the corresponding period in 2024, an increase of 8.3%.

PART A / POWER CORPORATION OF CANADA

NET EARNINGS AND ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS

The Corporation's net earnings for the three-month period ended December 31, 2025 decreased by $525 million or 56.3% and adjusted net earnings increased by $38 million or 4.6% from the corresponding quarter in 2024:

$43 million from Power Sustainable in the corresponding quarter in 2024.

The Corporation's net earnings for the twelve-month period ended December 31, 2025 decreased by $220 million or 7.9% and adjusted net earnings increased by $429 million or 14.4% from the corresponding period in 2024:

A discussion of the results of Lifeco, IGM, GBL and Sagard and Power Sustainable is provided in the sections "Lifeco", "IGM Financial", "GBL" and "Sagard and Power Sustainable" in the section "Review of Segments and Operating Results" below.

For additional discussion of the results of Lifeco and IGM, refer to Parts B and C, respectively, of this MD&A.

PART A / POWER CORPORATION OF CANADA

OVERVIEW OF THE BUSINESS

Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, wealth and asset management and reinsurance businesses. Lifeco operates primarily in the U.S., Canada and Europe under the brands Empower, Canada Life and Irish Life. For reporting purposes, Lifeco has four major reportable segments: the United States, Canada, Europe, and Capital and Risk Solutions. Lifeco focuses on four key lines of business that extend across its reportable operating segments: Retirement (serves the retirement needs of customers, primarily through employer plan sponsor-enabled relationships); Wealth (advice-enabled wealth management solutions for retail customers including retail savings and wealth products); Group Benefits (health and wellness benefits that are delivered at scale primarily through employer plan sponsor-enabled relationships including Group Life & Health); and Insurance & Risk Solutions (including life insurance, disability, and critical illness coverage for individuals, and payout annuities for individuals and pension plans as well as reinsurance).

The United States segment is operated by Empower, a leading provider of employer-sponsored retirement savings plans in the public/non-profit and corporate sectors. Empower consists of: Empower Workplace Solutions, which aligns with the Retirement line of business, offering saving, investing and advisory services through employer-sponsored plans; and Empower Personal Wealth, which aligns with the Wealth line of business, offering individual product solutions and providing retail wealth management products and services to individuals, including individual retirement accounts and after-tax investment accounts. The United States segment also includes an allocation of a portion of Lifeco's Corporate results and the results of Putnam, classified as discontinued operations in 2024.

The Canada segment is operated by Canada Life, offering a broad portfolio of financial and benefit plan solutions for individuals, families, businesses and organizations through four primary lines of business: Retirement, Wealth, Group Benefits and Insurance & Annuities and includes an allocation of a portion of Lifeco's Corporate results. Through the Retirement business unit, Lifeco provides retirement savings, income and annuity products and other speciality products to group clients in Canada. Through the Wealth business unit, Canada Life provides wealth savings and income products and services to individual customers. Through the Group Benefits business unit, Canada Life provides life, accidental death and dismemberment, critical illness, disability, health and dental protection and creditor insurance to group clients in Canada. The Insurance & Annuities business unit offers individual life, disability and critical illness insurance products and services, as well as individual life annuities to individual customers.

The Europe segment comprises four distinct lines of business: Retirement, Wealth, Group Benefits and Insurance & Annuities. The Europe segment operates under the Canada Life brand in the U.K. and Germany and under the Irish Life brand in Ireland along with other acquired brands within the broker market in Ireland and includes an allocation of a portion of Lifeco's Corporate results. The Retirement business unit includes group pensions business in Ireland, and the Group Benefits business unit consists of group life and health insurance business in the U.K. and Ireland. The Wealth business unit consists of investment products offered in the U.K., pension, savings and investment products offered in Ireland and pension products offered in Germany. The Insurance & Annuities business unit consists of bulk and individual payout annuities offered in the

U.K. and Ireland, equity-release mortgages offered in the U.K., and individual protection insurance offered in Ireland and Germany.

The Capital and Risk Solutions segment includes Lifeco's reinsurance business under the Insurance & Risk Solutions line of business, which operates primarily in the U.S., Barbados, Bermuda and Ireland, and includes an allocation of a portion of Lifeco's Corporate results. Reinsurance products are provided through Canada Life and its subsidiaries and include both reinsurance and retrocession business transacted directly with clients or through reinsurance brokers. In June 2025, Lifeco announced that the Capital and Risk Solutions segment ceased new business for its U.S. traditional life mortality risk reinsurance line of business in order to increase focus on core markets of structured solutions, longevity reinsurance and catastrophe retrocession.

The Corporate segment includes operating results for activities of Lifeco that are not associated with the major business units, including certain overhead expenses, earnings on surplus, financing charges and related taxes not directly associated with the operations of the major business units, the results of PanAgora, dividend income from shareholdings in Franklin Templeton, and the results of the U.S. insurance portfolio including a retained block of life insurance, predominately participating policies, which are now administered by Protective Life Insurance Company, as well as a closed life retrocession block and GLWB products.

See Part B of this MD&A for additional information on Lifeco.

RESULTS

PART A / POWER CORPORATION OF CANADA

Contribution to Power Corporation

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

December 31,

2025

December 31,

2024

Average direct ownership (%)

68.7

68.8 68.2

68.6

68.2

Net earnings from continuing operations

649

765 735

2,621

2,661

Adjusted net earnings from continuing operations

823

822 749

3,138

2,810

Dividend received

1,544

1,411

Contribution to earnings

As at

December 31,

2025

December 31,

2024

Contribution to holding company balance sheets

Investment in Lifeco, carrying value

17,237

17,108

% of total holding company assets

58.4

59.6

Investment in Lifeco, fair value

42,147

30,292

% of total holding company assets, at fair value

69.2

67.7

Reconciliation of contribution to net earnings and adjusted net earnings of Power Corporation

Three months ended Twelve months ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

Contribution to Power Corporation's:

Adjusted net earnings from continuing operations As reported by Lifeco

Effect of consolidation 1

856

842

760

3,191

2,858

(33)

(20)

(11)

(53)

(48)

823

822 749

3,138

2,810

Adjustments

As reported by Lifeco

(135)

(47) 1

(473)

(123)

Effect of consolidation 2

(39)

(10) (15)

(44)

(26)

(174)

(57)

(14)

(517)

(149)

Net earnings from continuing operations

649

765

735

2,621

2,661

Net earnings (loss) from discontinued operations - Putnam

(48)

Net earnings

649

765

735

2,621

2,613

The Effect of consolidation includes the elimination of intercompany transactions and the application of the Corporation's accounting method for investments under common ownership including an adjustment for Lifeco's investment in PSEIP, PSM and SHMI and an allocation of the results of the fintech portfolio.

Refer to the section "Adjustments" for details of Effect of consolidation.

Adjusted and net earnings per share as reported by Lifeco

Three months ended Twelve months ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

Adjusted net earnings from continuing operations 1 2

1.36

1.33

1.20

5.03

4.50

Adjustments 3

(0.21)

(0.08)

(0.74)

(0.20)

Net earnings from continuing operations 1

1.15

1.25

1.20

4.29

4.30

Net earnings 1

1.15

1.25

1.20

4.29

4.23

Attributable to Lifeco common shareholders.

Defined as "base earnings per common share" by Lifeco, a non-IFRS ratio; refer to the section "Non-GAAP Financial Measures and Ratios" in Part B of this MD&A.

See the section "Adjustments" below.

Contribution to adjusted and net earnings by segments as reported by Lifeco

PART A / POWER CORPORATION OF CANADA

Three months ended Twelve months ended

December 31,

2025

September 30,

2025

December 31,

2024

(restated) 1

December 31,

2025

December 31,

2024

(restated) 1

Adjusted net earnings from continuing operations 2 3

United States

440

436

381

1,582

1,408

Canada

400

371

362

1,462

1,418

Europe

256

266

260

1,023

946

Capital and Risk Solutions

258

265

232

965

856

Corporate

(109)

(113)

(120)

(383)

(436)

1,245

1,225

1,115

4,649

4,192

Adjustments 4

Market experience relative to expectations 5

(61)

(216)

214

Assumption changes and management actions 5

(27)

(25) 16

(87)

(149)

Business transformation and other impacts

(73)

(56)

(30)

(260)

(112)

Amortization of acquisition-related finite life intangible assets

(36)

(37)

(148)

Tax legislative changes and other tax impacts

(197)

(67) 1

(689)

(181)

Net earnings from continuing operations 2

United States

417

376

333

1,436

1,229

Canada

425

483

377

1,464

1,640

Europe

128

188

339

609

930

Capital and Risk Solutions

203

280

203

861

656

Corporate

(125)

(169)

(136)

(410)

(444)

Net earnings from continuing operations 2

1,048

1,158

1,116

3,960

4,011

Net earnings (loss) from discontinued operations - Putnam

(115)

Net gain from disposal of discontinued operations - Putnam

Net earnings 2

1,048

1,158

1,116

3,960

3,940

In the first quarter of 2025, Lifeco made disclosure enhancements to the segment and line of business classifications and has restated the comparative results for 2024 to conform with the current presentation. For additional information, refer to the section "Summary of Earnings Reclassifications" in Part B of this MD&A.

Attributable to Lifeco common shareholders.

Defined as "base earnings (loss)" by Lifeco, a non-IFRS financial measure; refer to Part B of this MD&A for additional details including a definition and reconciliation by segment.

See the section "Adjustments" below. Described as "items excluded from base earnings" by Lifeco; refer to Part B of this MD&A.

Refer to Part B of this MD&A for more details, including a definition of these Adjustments.

Q4 2025 vs. Q4 2024 and Q3 2025 2025 vs. 2024

Net earnings

$1,048 million or $1.15 per share, compared with $1,116 million or $1.20 per share in the corresponding period in 2024, a decrease of 4.2% on a per share basis, and $1,158 million or

$1.25 per share in the third quarter of 2025.

Net earnings from continuing operations

$1,048 million or $1.15 per share, compared with $1,116 million or $1.20 per share in the corresponding period in 2024, a decrease of 4.2% on a per share basis, and $1,158 million or

$1.25 per share in the third quarter of 2025.

Adjusted net earnings from continuing operations

$1,245 million or $1.36 per share, compared with $1,115 million or $1.20 per share in the corresponding period in 2024, an increase of 13.3% on a per share basis, and $1,225 million or

$1.33 per share in the third quarter of 2025.

$3,960 million or $4.29 per share, compared with $3,940 million or $4.23 per share in the corresponding period in 2024, an increase of 1.4% on a per share basis.

$3,960 million or $4.29 per share, compared with $4,011 million or $4.30 per share in the corresponding period in 2024, a decrease of 0.2% on a per share basis.

$4,649 million or $5.03 per share, compared with $4,192 million or $4.50 per share in the corresponding period in 2024, an increase of 11.8% on a per share basis.

U NITED STATES (CO N T I N U IN G O PE R AT IO N S )

PART A / POWER CORPORATION OF CANADA

Net earnings from continuing operations in the three-month period ended December 31, 2025 increased by US$63 million (C$84 million) to US$300 million (C$417 million), compared with the corresponding quarter in 2024. Adjusted net earnings were US$317 million (C$440 million) in the three-month period ended December 31, 2025, an increase of US$45 million (C$59 million), compared with the corresponding quarter in 2024, primarily due to:

Higher fee and spread income driven by higher asset levels from elevated equity markets and participant growth in both the Retirement and Wealth businesses; and

Favourable tax adjustments in the Retirement business;

Partially offset by an increase in operating expenses incurred to support the growth in both the Retirement and Wealth businesses.

Adjusted net earnings in the three-month period ended December 31, 2025 excluded Adjustments of negative US$17 million (C$23 million), compared with negative US$35 million (C$48 million) in the corresponding quarter in 2024. The decrease in negative Adjustments was primarily due to the non-recurrence of guarantee assessment fees associated with an acquired business in the fourth quarter of 2024 recognized in the Retirement business, as well as model refinement in the current year, which was recognized in both the Retirement and Wealth businesses. These increases were partially offset by general restructuring costs and higher integration expenses.

Net earnings from continuing operations in the twelve-month period ended December 31, 2025 increased by US$135 million (C$207 million) to US$1,031 million (C$1,436 million), compared with the corresponding period in 2024. Adjusted net earnings were US$1,136 million (C$1,582 million) in the twelve-month period ended December 31, 2025, an increase of US$108 million (C$174 million), compared with the corresponding period in 2024, primarily due to the same reasons explained in the three-month period above, partially offset by higher credit-related impacts on invested assets in both the Retirement and Wealth businesses.

Adjusted net earnings in the twelve-month period ended December 31, 2025 excluded Adjustments of negative US$105 million (C$146 million), compared with negative US$132 million (C$179 million) in the corresponding period in 2024. The decrease in negative adjustments was primarily due to:

The non-recurrence of prior-year Prudential integration and restructuring expenses;

Model refinement in the current year, which was recognized in both the Retirement and Wealth businesses; and

Favourable tax adjustments recognized in the current year in the Retirement business;

Partially offset by higher guarantee assessment fees in the current year compared with the prior year.

CANADA

Net earnings in the three-month period ended December 31, 2025 increased by $48 million to $425 million, compared with the corresponding quarter in 2024. Adjusted net earnings in the three-month period ended December 31, 2025 were

$400 million, an increase of $38 million compared with the corresponding quarter in 2024, primarily due to:

Favourable Group Benefits and Individual Insurance experience;

Higher fee income due to higher assets resulting from market appreciation; and

Changes in certain tax estimates;

Partially offset by lower earnings on surplus from lower interest rates.

Adjusted net earnings in the three-month period ended December 31, 2025 excluded Adjustments of positive $25 million, compared with Adjustments of positive $15 million in the corresponding quarter in 2024, including market experience relative to expectations of positive $30 million, compared with positive $9 million in the corresponding quarter in 2024, primarily due to more favourable private equity performance and credit spread impact, partially offset by less favourable interest rate impacts.

Net earnings in the twelve-month period ended December 31, 2025 decreased by $176 million to $1,464 million, compared with the corresponding period in 2024. Adjusted net earnings in the twelve-month period ended December 31, 2025 were

$1,462 million, an increase of $44 million compared with the corresponding period in 2024, primarily due to:

Higher Group Benefits earnings from favourable long-term disability experience;

Higher Retirement earnings from asset growth driven by market appreciation; and

Changes in certain tax estimates;

Partially offset by lower earnings on surplus from lower interest rates.

Adjusted net earnings in the twelve-month period ended December 31, 2025 excluded Adjustments of positive $2 million, compared with Adjustments of positive $222 million in the corresponding period in 2024, primarily due to:

A restructuring provision recorded in the second quarter of 2025;

Less favourable impact of assumption changes and management actions. For additional information, refer to the section "Assumption Changes and Management Actions" in Part B of this MD&A; and

Less favourable interest rate and public equity impacts;

Partially offset by improved credit spread and private equity performance.

EU ROPE

PART A / POWER CORPORATION OF CANADA

Net earnings in the three-month period ended December 31, 2025 decreased by $211 million to $128 million, compared with the corresponding quarter in 2024. Adjusted net earnings in the three-month period ended December 31, 2025 were

$256 million, a decrease of $4 million compared with the corresponding quarter in 2024, primarily due to:

Lower Group Benefits earnings from unfavourable group benefits experience in the U.K., partially offset by favourable group mortality experience in Ireland; and

Lower Insurance & Annuities earnings due to Ireland's less favourable individual protection experience and lower equity-release mortgage (ERM) origination fees in the U.K.;

Partially offset by higher Wealth earnings from higher fee income driven by client assets growth and the positive impact of currency movements across all lines of business.

Adjusted net earnings in the three-month period ended December 31, 2025 excluded Adjustments of negative $128 million, compared with Adjustments of positive $79 million in the corresponding quarter in 2024, primarily due to:

Unfavourable impact of assumption changes and management actions. For additional information, refer to the section "Assumption Changes and Management Actions" in Part B of this MD&A;

Unfavourable market experience relative to expectations compared with a positive impact in the prior year, primarily due to the impact of changes in risk-free interest rates; and

Negative business transformation and other impacts, primarily due to higher restructuring costs.

Net earnings in the twelve-month period ended December 31, 2025 decreased by $321 million to $609 million, compared with the corresponding period in 2024. Adjusted net earnings in the twelve-month period ended December 31, 2025 were

$1,023 million, an increase of $77 million compared with the corresponding period in 2024, primarily due to:

Higher Group Benefits earnings from favourable experience in the U.K. and Ireland;

Higher Wealth earnings from higher fee income driven by client assets growth; and

Positive impact of currency movements across all lines of business;

Partially offset by lower earnings on surplus resulting from dividends paid to the parent holding company and lower trading gains.

Adjusted net earnings in the twelve-month period ended December 31, 2025 excluded Adjustments of negative $414 million, compared with Adjustments of negative $16 million in the corresponding period in 2024, primarily due to:

More unfavourable assumption changes and management actions. For additional information, refer to the section "Assumption Changes and Management Actions" in Part B of this MD&A;

Unfavourable market experience relative to expectations compared with a positive impact in the prior year, primarily due to the impact of a reduction in credit spreads in the U.K. and from changes in risk-free interest rates; and

Negative business transformation and other impacts, primarily due to higher restructuring costs.

CAPITA L AND R ISK SOLU T IONS

Net earnings in the three-month period ended December 31, 2025 of $203 million were comparable with the corresponding quarter in 2024. Adjusted net earnings in the three-month period ended December 31, 2025 were $258 million, an increase of $26 million compared with the corresponding quarter in 2024, primarily driven by Capital Solutions new business growth, and modest unfavourable insurance experience as a result of fourth quarter seasonality and the benefit of a diversified portfolio.

Adjusted net earnings in the three-month period ended December 31, 2025 excluded Adjustments of negative $55 million, compared with Adjustments of negative $29 million in the corresponding quarter in 2024, primarily due to a negative impact from a management action relating to an international legacy insurance portfolio, as well as the impact of interest rate and credit spread relative to expectations.

Net earnings in the twelve-month period ended December 31, 2025 increased by $205 million to $861 million, compared with the corresponding period in 2024. Adjusted net earnings in the twelve-month period ended December 31, 2025 were

$965 million, an increase of $109 million compared with the corresponding period in 2024, primarily due to the same reasons explained in the three-month period above.

Adjusted net earnings in the twelve-month period ended December 31, 2025 excluded Adjustments of negative $104 million, compared with Adjustments of negative $200 million in the corresponding period in 2024, primarily due to the change in net impact of actuarial assumption updates, and the impact of interest rate and credit spread movements relative to expectations. For additional information, refer to the section "Assumption Changes and Management Actions" in Part B of this MD&A.

ADJU STMENTS

PART A / POWER CORPORATION OF CANADA

Adjustments are items excluded from net earnings from continuing operations in the determination of adjusted net earnings by Lifeco's management. Refer to the further discussion above in each of Lifeco's operating segments.

In 2025, Adjustments with a net negative earnings impact of $689 million after tax consist of:

In the fourth quarter of 2025, Adjustments were a net negative impact of $197 million, which consisted of business transformation and other impacts of negative $73 million after tax (negative $91 million pre-tax), market experience relative to expectations of negative $61 million after tax (negative $84 million pre-tax), amortization of acquisition-related finite life intangibles of negative $36 million after tax (negative $49 million pre-tax), and assumption changes and management actions of negative $27 million after tax (negative $28 million pre-tax).

In the third quarter of 2025, Adjustments were a net negative impact of $67 million, which consisted of business transformation and other impacts of negative $56 million after tax (negative $68 million pre-tax), amortization of acquisition-related finite life intangibles of negative $37 million after tax (negative $47 million pre-tax), and assumption changes and management actions of negative $25 million after tax (negative $25 million pre-tax), partially offset by market experience relative to expectations of positive $40 million after tax (positive $47 million pre-tax), and a positive impact from tax legislative changes and other tax impacts of $11 million.

In the second quarter of 2025, Adjustments were a net negative impact of $255 million, which consisted of business transformation and other impacts 1 of negative $121 million after tax (negative $181 million pre-tax), market experience relative to expectations of negative $104 million after tax (negative $116 million pre-tax), amortization of acquisition-related finite life intangibles of negative $38 million after tax (negative $51 million pre-tax), and assumption changes and management actions of negative $3 million after tax (negative $5 million pre-tax), partially offset by a positive impact from tax legislative changes and other tax impacts of $11 million.

In the first quarter of 2025, Adjustments were a net negative impact of $170 million, which consisted of market experience relative to expectations of negative $91 million after tax (negative $113 million pre-tax), amortization of acquisition-related finite life intangibles of negative $37 million after tax (negative $51 million pre-tax), assumption changes and management actions of negative $32 million after tax (negative $42 million pre-tax), and business transformation and other impacts of negative $10 million after tax (negative $13 million pre-tax).

In 2024, Adjustments with a net negative earnings impact of $181 million after tax consisted of:

In the fourth quarter of 2024, Adjustments were a net positive impact of $1 million, which consisted of market experience relative to expectations of positive $38 million after tax (positive $59 million pre-tax), assumption changes and management actions of positive $16 million after tax (positive $21 million pre-tax), and a positive impact from tax legislative changes and other tax impacts of $14 million, partially offset by amortization of acquisition-related finite life intangibles of negative $37 million after tax (negative $51 million pre-tax), and business transformation impacts of negative $30 million after tax (negative $34 million pre-tax).

In the third quarter of 2024, Adjustments were a net negative impact of $202 million, which consisted of assumption changes and management actions of negative $203 million after tax (negative $235 million pre-tax), amortization of acquisition-related finite life intangibles of negative $36 million after tax (negative $47 million pre-tax), and business transformation and other impacts of negative $4 million after tax (negative $7 million pre-tax), partially offset by market experience relative to expectations of positive $41 million after tax (positive $46 million pre-tax).

In the second quarter of 2024, Adjustments were a net negative impact of $33 million, which consisted of business transformation and other impacts of negative $29 million after tax (negative $35 million pre-tax), amortization of acquisition-related finite life intangibles of negative $37 million after tax (negative $52 million pre-tax), and a negative impact from tax legislative changes 2 of $34 million, partially offset by assumption changes and management actions of positive $39 million after tax (positive $1 million pre-tax) and market experience relative to expectations of positive

$28 million after tax (positive $45 million pre-tax).

In the first quarter of 2024, Adjustments were a net positive impact of $53 million, which consisted of market experience relative to expectations of positive $107 million after tax (positive $136 million pre-tax) and a positive impact from tax legislative changes and other tax impacts 2 of $34 million, partially offset by assumption changes and management actions of negative $1 million after tax (positive $3 million pre-tax), business transformation and other impacts of negative

$49 million after tax (negative $67 million pre-tax), and amortization of acquisition-related finite life intangibles of negative $38 million after tax (negative $50 million pre-tax).

The information above has been derived from Lifeco's annual MD&A; see Part B of this MD&A for additional information on Lifeco's annual results. Lifeco's most recent annual MD&A is available under its profile on SEDAR+ (https://www.sedarplus.ca).

Includes the provision releases related to unclaimed deposits from current and former shareholders related to the 2003 acquisition of Canada Life Financial Corporation, recorded in the Corporate segment in the second quarter of 2025.

The GMT legislation was enacted in Canada on June 20, 2024, retroactive to January 1, 2024. The negative impact recognized in the second quarter of 2024 included a

$34 million retroactive impact for the first quarter of 2024 as a result of Canada's enactment of legislation in the second quarter. The adjusted net earnings for the first quarter of 2024 have been presented on a pro forma basis as if the legislation had been enacted in the first quarter of 2024, reflecting the impact to adjusted net earnings of $34 million. Refer to Part B of this MD&A for further details.

OVERVIEW OF THE BUSINESS

IGM is a leading wealth and asset management company supporting advisors and the clients they serve in Canada, and institutional investors globally. IGM's core business is comprised of wealth manager IG Wealth Management and asset manager Mackenzie Investments. IGM also holds a number of strategic investments that provide benefits to the operating subsidiaries while furthering IGM's growth prospects. IGM has three reportable segments: Wealth Management, Asset Management, and Corporate and Other.

The Wealth Management segment reflects the activities of its core business and strategic investments that are principally focused on providing financial planning and related services to retail client households. This segment includes the activities of IG Wealth Management, a retail distribution organization that serves Canadian households through its investment dealer and other subsidiaries licensed to distribute financial products and services. IG Wealth Management provides clients with personalized advice, comprehensive financial planning, insurance and mortgage services and professionally managed investment solutions. IG Wealth Management distinguishes itself from its competition by offering comprehensive planning to its clients that synchronizes their financial lives. This segment also includes the investment management activities of these organizations, including mutual fund management and discretionary portfolio management services, as well as IGM's strategic investments in Rockefeller (classified as an investment in an associate) and Wealthsimple (classified by IGM as an investment at FVOCI).

The Asset Management segment reflects the activities of its core business and strategic investments primarily focused on providing investment management services. This segment includes the operations of Mackenzie Investments which provides investment management services to a suite of investment funds that are distributed through third-party dealers and financial advisors, and through institutional advisory mandates to financial institutions, pensions and other institutional investors. Mackenzie Investments is a diversified asset management solutions provider and provides investment management and related services with a wide range of investment mandates through a boutique structure and multiple distribution channels. Mackenzie seeks to be Canada's preferred global asset management solutions provider and business partner. This segment also includes IGM's strategic investments in ChinaAMC and Northleaf, which are classified as investments in associates.

The Corporate and Other segment primarily represents the investments made by IGM in Lifeco and the Portage Ventures Funds (refer to the section "Sagard and Power Sustainable"), IGM's unallocated capital, as well as consolidation elimination entries.

See Part C of this MD&A for additional information on IGM.

PART A / POWER CORPORATION OF CANADA

RESULTS

Contribution to Power Corporation

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

December 31,

2025

December 31,

2024

Average direct ownership (%)

62.9

62.5 62.2

62.6

62.3

Net earnings from continuing operations

191

168 180

658

583

Adjusted net earnings from continuing operations

178

169 161

640

569

Dividend received

333

Contribution to earnings

As at

December 31,

2025

December 31,

2024

Contribution to holding company balance sheets

Investment in IGM, carrying value

4,337

4,094

% of total holding company assets

14.7

14.3

Investment in IGM, fair value

9,144

6,792

% of total holding company assets, at fair value

15.0

15.2

Reconciliation of contribution to net earnings and adjusted net earnings of Power Corporation

Three months ended Twelve months ended

December 31,

September 30,

December 31,

2025

2024

2025

2024

Contribution to Power Corporation's

Adjusted net earnings from continuing operations As reported by IGM 1

Effect of consolidation 2

190

188 156

685

586

(12)

(19) 5

(45)

(17)

178

169 161

640

569

Adjustments

As reported by IGM

(2) 3

(3)

Effect of consolidation 3

1 16

(1)

Net earnings from continuing operations

191

168

180

658

583

Net earnings (loss) from discontinued operations

Effect of consolidation 4

(1)

Net earnings

191

168

180

658

582

Based on adjusted net earnings available to IGM common shareholders.

Refer to the section "Adjustments" for details of Effect of consolidation.

Represents IGM's share of the discontinued operations of Lifeco.

PART A / POWER CORPORATION OF CANADA

Adjusted and net earnings per share as reported by IGM

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

December 31,

2025

December 31,

2024

Adjusted net earnings 1 2

Adjustments 3 4

1.27

0.09

1.27 1.05

(0.01) 0.02

4.61

0.03

3.95

(0.02)

Net earnings 1 5

1.36

1.26 1.07

4.64

3.93

Available to IGM common shareholders.

Adjusted net earnings per share is a non-IFRS ratio; refer to the section "Non-IFRS Financial Measures and Other Financial Measures" in Part C of this MD&A.

See the section "Adjustments" below.

Described as "Other items" by IGM; refer to Part C of this MD&A.

Diluted earnings per share.

Contribution to adjusted net earnings by segments and net earnings as reported by IGM

Three months ended Twelve months ended

December 31,

2025

September 30,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Wealth Management 1

178

158

133

591

478

Asset Management 1

110

377

350

Corporate and Other 1

125

111

Adjusted net earnings 2 3

301

301 250

1,093

939

Adjustments 3 4

(3) 5

(5)

Net earnings 2

322

298

255

1,101

934

Debt and interest expense is allocated to each segment based on IGM's assessment of: i) capacity to service the debt, and ii) where the debt is being serviced.

Available to IGM common shareholders.

Adjusted net earnings is a non-IFRS financial measure; refer to Part C of this MD&A for additional details including a definition and reconciliation. IGM does not allocate Adjustments to segments.

Described as "Other items" by IGM; refer to Part C of this MD&A.

Q4 2025 vs. Q4 2024 and Q3 2025 2025 vs 2024

PART A / POWER CORPORATION OF CANADA

Net earnings

$322 million or $1.36 per share, compared with $255 million or

$1.07 per share in the corresponding period in 2024, an increase of 27.1% on a per share basis, and $298 million or $1.26 per share in the third quarter of 2025.

Adjusted net earnings

$301 million or $1.27 per share, compared with $250 million or

$1.05 per share in the corresponding period in 2024, an increase of 21.0% on a per share basis, and $301 million or $1.27 per share in the third quarter of 2025.

$1,101 million or $4.64 per share, compared with $934 million or

$3.93 per share in the corresponding period in 2024, an increase of 18.1% on a per share basis.

$1,093 million or $4.61 per share, compared with $939 million or

$3.95 per share in the corresponding period in 2024, an increase of 16.7% on a per share basis.

Adjusted net earnings exclude Adjustments of a positive earnings impact of $8 million in the twelve-month period ended December 31, 2025, which include a positive earnings impact of $21 million in the fourth quarter, compared with Adjustments of a negative earnings impact of $5 million in the corresponding twelve-month period in 2024. These Adjustments are not allocated to segments. The following is a summary of each segment's net earnings and adjusted net earnings:

WEALTH MA NAGEMENT

Adjusted net earnings increased by $45 million to $178 million in the three-month period ended December 31, 2025, compared with the corresponding quarter in 2024. Adjusted net earnings of Wealth Management include a positive contribution from strategic investments of $11 million, compared with a negative contribution of $2 million in the corresponding quarter of 2024. The contribution to adjusted net earnings from IG Wealth Management increased by

$32 million to $167 million, primarily due to:

An increase in income from advisory fees of $41 million to $383 million, primarily due to the increase in average assets under advisement (AUA) 1 of 13.2%, partially offset by a decrease in the advisory fee rate. The average advisory fee rate for the three-month period was 96.3 basis points of average AUA, compared with 97.7 basis points in the corresponding quarter in 2024. Fee rates are determined based on client AUA levels and the average rate will fluctuate based on changes in a client's AUA as well as product mix;

An increase in income from product and program fees of $34 million to $300 million, primarily due to the increase in average assets under management (AUM) 1 of 13.1%. The average product and program fee rate for the three-month period was 85.3 basis points of AUM, compared with 85.5 basis points in the corresponding quarter in 2024; and

An increase in other financial planning revenues of $11 million to $53 million, primarily due to higher earnings from mortgage banking operations and higher revenues from the distribution of insurance products.

Partially offset by:

An increase in advisory and business development expenses of $33 million to $307 million in the three-month period which includes compensation paid to advisors, the majority of which varies directly with asset or sales levels. Asset-based compensation increased by $25 million to $203 million, primarily due to an increase in AUA. Sales-based compensation payments are based upon the level of net new assets contributed to client accounts and are capitalized and amortized as they reflect incremental costs to obtain a client contract. Sales-based compensation increased by $3 million to

$30 million. Other advisory and business development expenses increased by $5 million to $74 million in the three-month period, primarily due to higher compensation paid on the distribution of insurance products;

An increase in sub-advisory expenses of $7 million to $57 million, primarily due to changes in AUM; and

An increase in income taxes of $11 million to $61 million.

Adjusted net earnings increased by $113 million to $591 million in the twelve-month period ended December 31, 2025, compared with the corresponding period in 2024. Adjusted net earnings of Wealth Management include a positive contribution from strategic investments of $9 million, compared with a negative contribution of $12 million in the corresponding period in 2024. The contribution to adjusted net earnings from IG Wealth Management increased by

$92 million to $582 million, primarily due to:

An increase in income from advisory fees of $145 million to $1,440 million, primarily due to the increase in average AUA of 12.9%, partially offset by a decrease in the advisory fee rate and one less calendar day in the twelve-month period of 2025, compared with the same period in 2024. The average advisory fee rate for the twelve-month period was 97.3 basis points of average AUA, compared with 98.8 basis points in the corresponding period in 2024;

An increase in income from product and program fees of $118 million to $1,113 million, primarily due to the increase in average AUM of 12.5%. The average product and program fee rate for the twelve-month period was 85.2 basis points of AUM, compared with 85.6 basis points in the corresponding period in 2024; and

An increase in other financial planning revenues of $25 million to $180 million, primarily due to the same reasons explained in the three-month period above.

1 Refer to the section "Other Measures".

Partially offset by:

PART A / POWER CORPORATION OF CANADA

An increase in advisory and business development expenses of $119 million to $1,153 million in the twelve-month period. Asset-based compensation increased by $97 million to $762 million, primarily due to the same reason explained in the three-month period above. Sales-based compensation increased by $10 million to $115 million. Other advisory and business development expenses increased by $12 million to $276 million in the twelve-month period, primarily due to the same reason explained in the three-month period above;

An increase in sub-advisory expenses of $25 million to $216 million, primarily due to the same reason explained in the three-month period above;

An increase in operations and support expenses of $13 million to $475 million, which includes costs that support wealth management and other general and administrative functions such as product management, technology and operations, as well as other functional business units and corporate expenses;

A decrease in net investment income and other of $4 million to $8 million. Net investment income and other consists of unrealized gains or losses on investments in proprietary funds, investment income earned on cash and cash equivalents and securities, and other income not related to IG Wealth Management's core business. It also includes a charge from the Corporate and Other segment for the use of unallocated capital; and

An increase in income taxes of $34 million to $212 million.

ASSET MANAGEMEN T

The Asset Management segment includes the fees received from IGM's investment funds, Wealth Management segment and third parties for investment management services.

Adjusted net earnings increased by $1 million to $88 million in the three-month period ended December 31, 2025, compared with the corresponding quarter in 2024. Adjusted net earnings of Asset Management includes a positive contribution of

$28 million from strategic investments, an increase of $3 million compared with the corresponding quarter in 2024. The adjusted net earnings of Mackenzie decreased by $2 million to $60 million, primarily due to:

An increase in expenses of $12 million to $134 million, primarily due to an increase in advisory and business development expenses of $6 million and an increase in operations and support expenses of $6 million compared with the corresponding quarter in 2024. The increase in advisory and business development expenses was primarily attributed to higher wholesaler commissions consistent with the increase in investment fund net sales. Operations and support expenses include costs associated with business operations, including technology and business processes, in-house investment management and product shelf management, corporate management and support functions. These expenses primarily reflect compensation, technology and other service provider expenses; and

A decrease in net investment income and other of $7 million to $2 million. Net investment income and other primarily includes investment returns related to Mackenzie's investments in proprietary funds, which are generally made in the process of launching a fund and are sold as third-party investors subscribe.

Partially offset by:

An increase in net asset management fees, which is asset management fees offset by dealer compensation expenses, of

$16 million to $221 million. Net asset management fees - third party were $185 million, an increase of $12 million compared with the corresponding quarter in 2024, primarily due to an increase in the average AUM of 15.2%, partially offset by a decrease in the net asset management fee rate. Mackenzie's net asset management fee rate was 49.0 basis points for the three months ended December 31, 2025, compared with 52.8 basis points in the corresponding quarter in 2024. The decrease in rate was driven by a change in the composition of AUM, including the impact of having a greater share in non-retail-priced products. Asset management fees - Wealth Management were $35 million, an increase of $4 million from the corresponding quarter in 2024.

Adjusted net earnings increased by $27 million to $377 million in the twelve-month period ended December 31, 2025, compared with the corresponding period in 2024. Adjusted net earnings of Asset Management includes a positive contribution of $138 million from strategic investments, compared with $116 million in the corresponding period in 2024. The adjusted net earnings of Mackenzie increased by $5 million to $239 million, primarily due to:

An increase in net asset management fees, which is asset management fees offset by dealer compensation expenses, of

$51 million to $834 million. Net asset management fees - third party were $701 million, an increase of $39 million compared with the corresponding period in 2024, primarily due to an increase in the average AUM of 11.4%, partially offset by a decrease in the net asset management fee rate and one less calendar day in the twelve-month period of 2025. Mackenzie's net asset management fee rate was 50.0 basis points for the twelve months ended December 31, 2025, compared with 52.9 basis points in the corresponding period in 2024. The decrease in rate was driven by the same reason explained in the three-month period above. Asset management fees - Wealth Management were $133 million, an increase of $12 million from the corresponding period in 2024.

Partially offset by:

An increase in expenses of $36 million to $499 million, primarily due to an increase in operations and support expenses of

PART A / POWER CORPORATION OF CANADA

$23 million and an increase in advisory and business development expenses of $13 million in the twelve-month period. The increase in advisory and business development expenses was primarily attributed to the same reason explained in the three-month period above;

A decrease in net investment income and other of $9 million to $15 million; and

An increase in income taxes of $2 million to $86 million.

ASSETS U NDER MANAGEM ENT AND ADVISEMENT

AUA are the key driver of the Wealth Management segment.

AUM are the key driver of the Asset Management segment and an additional driver of revenues and expenses within the Wealth Management segment in relation to its investment management activities.

Total assets under management and advisement (AUM&A) were as follows:

December 31,

September 30,

December 31,

September 30,

(in billions of dollars)

2025

2024

Wealth Management

IG Wealth Management AUM

138.7

138.0

123.2

120.8

IG Wealth Management other AUA

20.2

17.9

17.2

15.6

Assets under advisement

158.9

155.9

140.4

136.4

Asset Management

Third-party AUM

151.2

146.7

129.9

128.5

Sub-advisory and AUM to Wealth Management

92.8

83.4

83.6

Assets under management

244.0

239.5

213.3

212.1

Consolidated 1

Assets under management

289.9

284.7

253.1

249.3

Assets under management and advisement 2

310.1

302.6

270.4

264.9

Represents the consolidated AUM&A of IGM. In the Wealth Management segment, assets under management is a component part of assets under advisement. All instances where the Asset Management segment is providing investment management services or distributing its products through the Wealth Management segment are eliminated in IGM's reporting such that there is no double counting of the same client savings held at IGM's core businesses.

Includes adjustment representing the elimination of double counting where business is reflected within multiple segments.

Total average assets under management and advisement were as follows:

(in billions of dollars)

2025

2024

Wealth Management

IG Wealth Management AUA

157.8

150.5

141.2

142.5

139.4

132.9

128.1

124.0

IG Wealth Management AUM

139.5

133.0

124.5

125.5

123.3

117.7

113.5

110.0

Asset Management

Third-party AUM

149.7

141.2

132.7

132.2

130.0

125.7

122.8

121.0

Total AUM

243.2

230.7

217.9

217.5

213.9

207.5

201.8

198.9

Consolidated 1

Assets under management

289.2

274.2

257.2

257.7

253.3

243.4

236.3

231.0

Assets under management and advisement 2

307.5

291.7

273.8

274.7

269.3

258.6

250.9

245.0

Represents the consolidated AUM&A of IGM. All instances where the Asset Management segment is providing investment management services or distributing its products through the Wealth Management segment are eliminated in IGM's reporting such that there is no double counting of the same client savings held at IGM's core businesses.

Includes adjustment representing the elimination of double counting where business is reflected within multiple segments.

ADJU STMENTS

PART A / POWER CORPORATION OF CANADA

Adjustments are items excluded from net earnings in the determination of adjusted net earnings by IGM's management.

In 2025, adjusted net earnings exclude a positive impact of $8 million after tax ($26 million pre-tax), consisting of:

Gain on partial sales of investment in associates of $26 million after tax ($44 million pre-tax), net of one-time costs, recorded in the fourth quarter; and

IGM's proportionate share of Lifeco's adjustments of negative $18 million, of which $5 million was recorded in the fourth quarter.

In 2024, adjusted net earnings excluded a negative impact of $5 million after tax ($10 million pre-tax), consisting of:

A positive impact of $5 million related to the benefit from a tax loss consolidation transaction that IGM entered into with a subsidiary of the Corporation, recorded in the fourth quarter;

IGM's proportionate share of Rockefeller's one-time debt refinancing costs of negative $3 million, related to the early repayment of one of Rockefeller's financing facilities, recorded in the second quarter; and

IGM's proportionate share of Lifeco's adjustments of negative $7 million, of which nil was recorded in the fourth quarter.

The information above has been derived from IGM's annual MD&A; see Part C of this MD&A for additional information on IGM's annual results. IGM's most recent annual MD&A is available under its profile on SEDAR+ (https://www.sedarplus.ca).

OVERVIEW OF THE BUSINESS

GBL is an established investment holding company. As a leading and active investor in Europe, GBL is focused on long-term value creation with the support of a stable family shareholder base. GBL is focused on delivering meaningful growth by providing attractive returns to its shareholders through a combination of growth in its net asset value per share, a sustainable dividend and share buybacks. GBL's portfolio is composed of global companies, leaders in their sectors, in which GBL can contribute to value creation by being an active professional investor.

At December 31, 2025, GBL's portfolio was mainly comprised of the following investments (% equity ownership):

LISTED ASSETS

SGS (SIX: SGSN) (14.3%) - testing, inspection and certification solutions

Pernod Ricard (EPA: RI) (6.8%) - premium spirits

Imerys (EPA: NK) (54.7%) - industrial mineral-based specialty solutions

adidas (XETR: ADS) (3.5%) - design, development and distribution of sporting goods

DIRECT PR IVATE ASSETS

Affidea (99.2%) - provider of advanced diagnostics and outpatient services

Sanoptis (84.3%) - provider of ophthalmology services

Voodoo (14.9%) - developer and publisher of mobile games

Umicore (EBR: UMI) (8.0%) - automotive catalysts, cathode materials for batteries and precious metals recycling

Concentrix (NASDAQ: CNXC) (14.1%) - global provider of customer experience (CX) solutions and technologies

Ontex (EBR: ONTEX) (19.98%) - provider of personal hygiene solutions

Parques Reunidos (23.0%) - operator of leisure parks

Canyon (52.4%) - direct-to-consumer manufacturer of premium bicycles

Through GBL Capital and Sienna Investment Managers, GBL has activities in indirect private assets and third-party asset management. GBL Capital invests in externally managed funds and direct co-investments allocated to buyout, venture capital/growth, private credit and hedge funds.

GBL reported a net asset value (refer to the section "Other Measures") at December 31, 2025 of €14,035 million or

€105.37 per share, compared with €15,681 million or €113.30 per share at December 31, 2024.

RESULTS

PART A / POWER CORPORATION OF CANADA

Contribution to Power Corporation

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

Average direct ownership (%) 1

17.1

17.1 16.5

Contribution to earnings

Net earnings (loss)

(195)

(78) 18

Adjusted net earnings (loss)

(15)

(11) 18

December 31,

2025

2024

16.9

16.1

(263)

(38)

175

Total dividend received 2

As at

December 31,

2025

December 31,

2024

Contribution to holding company balance sheets

Investment in GBL, carrying value

3,291

3,683

% of total holding company assets

11.1

12.8

Investment in GBL, fair value

2,691

2,162

% of total holding company assets, at fair value

4.4

4.8

Average direct ownership presented does not consider the effect of the treasury shares held by GBL. The average economic ownership including the effect of treasury shares was 18.6% for the twelve-month period ended December 31, 2025 (17.9% in 2024).

The dividend received from Parjointco was €112 million for the period ended December 31, 2025, compared with €62 million for the period ended December 31, 2024.

Reconciliation of contribution to net earnings and adjusted net earnings of Power Corporation

Three months ended Twelve months ended

December 31,

2025

September 30, December 31,

2025 2024

December 31,

2025

December 31,

2024

Contribution to Power Corporation's Adjusted net earnings (loss) Adjustments

Imerys impairment and other charges and

currency translation reclassification

Loss on partial divestment of GBL Capital portfolio and Sienna Investment Managers

Affidea's gain on debt modification

(15)

(11) 18

(38)

(155)

− −

(155)

(44)

(25)

(67) −

(92)

− −

(180)

(67) −

(225)

(44)

Net earnings (loss)

(195)

(78) 18

(263)

PART A / POWER CORPORATION OF CANADA

Contribution to net earnings (loss) as reported by GBL

Three months ended Twelve months ended

December 31,

September 30,

December 31,

(in millions of euros)

2025

2024

2025

2024

Share of earnings (loss) of associates and consolidated operating companies of:

Imerys Affidea Sanoptis Canyon

Parques Reunidos/Piolin II

GBL Capital and Sienna Investment Managers

(285)

(225)

(52)

(23)

(15)

(34)

(36)

(71)

(75)

(6)

(19)

(6)

(19)

(13)

(18)

(4)

(25)

(14)

(1)

(29)

(308)

(46)

(281)

(168)

Net dividends from investments:

SGS

126

Pernod Ricard

adidas

Umicore

Concentrix

Other

211

255

Other financial income (expenses)

(29)

(144) 144

(208)

197

Other operating income (expenses)

(47)

(54) (51)

(196)

(171)

Gains (losses) from disposals, impairments and reversals of non-current assets

(71)

(84) (1)

(157)

Interest income (expenses)

(1)

1 (10)

(21)

Taxes

(1)

− −

(1)

Net earnings (loss) 1 2

(416)

(253) 77

(625)

132

Described as "IFRS consolidated net result" in GBL's publicly disclosed information.

Attributable to GBL shareholders.

Q4 2025 vs. Q4 2024 and Q3 2025 2025 vs. 2024

Net earnings (loss)

Net loss of €416 million, compared with net earnings of €77 million in the corresponding period in 2024, and a net loss of €253 million in the third quarter of 2025.

Net loss of €625 million, compared with net earnings of

€132 million in the corresponding period in 2024.

For the three-month period ended December 31, 2025, the net loss was €416 million, compared with net earnings of

€77 million in the corresponding quarter in 2024. The decrease in net earnings of €493 million was mainly due to:

An increase in the negative contribution from the share of earnings of associates and consolidated operating companies of €262 million to a negative contribution to GBL to €308 million, compared with a negative contribution of €46 million in the corresponding quarter in 2024, mainly due to:

A negative contribution from Imerys of €285 million, primarily related to a non-cash goodwill impairment charge of

€467 million of its Solutions for Refractory, Abrasives and Construction business due to difficult market conditions, as well as charges related to a cost and performance improvement program of €41 million and project-related write-offs of Imerys British Lithium of €31 million. GBL's share of the impairment and other charges was €295 million; and

A decrease in the contribution from Affidea of €24 million and GBL Capital and Sienna Investment Managers of

€13 million to a negative contribution to GBL of €23 million and €14 million, respectively.

Partially offset by:

An increase in the contribution from Sanoptis of €69 million to a positive contribution to GBL of €33 million; and

A decrease in the negative contribution from Parques and Canyon of €5 million and €13 million, respectively, to a negative contribution to GBL's earnings of €13 million and €6 million.

Disclaimer

PCC - Power Corporation of Canada published this content on April 20, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 20, 2026 at 18:58 UTC.