Power Financial Corporation Reports First Quarter 2013 Financial Results and Dividends

Power Financial Corporation Reports First Quarter 2013 Financial Results and 
Dividends 
Readers are referred to the sections entitled "Non-IFRS Financial Measures" 
and "Forward-Looking Statements" at the end of thisrelease. 
WINNIPEG, May 14, 2013 /CNW Telbec/ - Power Financial Corporation (TSX: PWF) 
today reported earnings results for the three months ended March 31, 2013. 
FIRST QUARTER RESULTS
Operating earnings attributable to common shareholders, a non-IFRS financial 
measure, for the quarter ended March 31, 2013 were $407 million or $0.57 per 
share, compared with $371million or $0.52 per share in the corresponding 
period in 2012, an increase of 9.5% on a per share basis. 
Other items, not included in operating earnings, for the first quarter of 2013 
resulted in a net charge of $13 million, compared with a contribution of $83 
million in the corresponding quarter of 2012. Additional details on other 
items can be found in the sections entitled "Pargesa Holding SA" and "Earnings 
Summary" below. 
Net earnings attributable to common shareholders for the quarter ended March 
31, 2013 were $394 million or $0.55 per share, compared with $454 million or 
$0.64 per share in the corresponding quarter of 2012. 
RESULTS OF GREAT-WEST LIFECO, IGM FINANCIAL AND PARGESA 
GREAT-WEST LIFECO INC.
For the quarter ended March 31, 2013, Great-West Lifeco Inc. (Lifeco) reported 
operating and net earnings attributable to common shareholders of 
$517million or $0.544 per share, compared with $449 million or $0.474 per 
share in the corresponding period of 2012. 
As at March 31, 2013, Power Financial and IGM Financial Inc. (IGM) held 68.1% 
and 4.0%, respectively, of Lifeco's common shares. Lifeco's contribution to 
Power Financial's operating earnings was $353 million for the quarter ended 
March 31, 2013, compared with $306million in the same period in 2012. 
IGM FINANCIAL INC.
For the quarter ended March 31, 2013, IGM reported operating and net earnings 
available to common shareholders of $181 million or $0.72 per share, compared 
with $199 million or $0.77 per share in the same period in 2012. 
As at March 31, 2013, Power Financial and The Great-West Life Assurance 
Company, asubsidiary of Lifeco, held 58.7% and 3.7%, respectively, of IGM's 
common shares. IGM contributed $107 million to Power Financial's operating 
earnings for the quarter ended March31, 2013, compared with $114 million for 
the corresponding period in 2012. 
PARGESA HOLDING SA 
For the quarter ended March 31, 2013, Pargesa Holding SA (Pargesa) reported an 
operating loss of SF17million, compared with an operating loss of 
SF9million in the corresponding period in 2012. Other items, not included in 
operating earnings, in the first quarter of 2013 resulted in a net charge of 
SF44 million, which consisted of Pargesa's share of an impairment charge 
recorded by its subsidiary Groupe Bruxelles Lambert in connection with its 
investment in GDF Suez. In the first quarter of 2012, other items represented 
a contribution of SF271million. Net loss for the first quarter of 2013 was 
SF61 million, compared with net earnings of SF262million in the 
corresponding quarter of 2012. 
Power Financial has a 50% interest in Parjointco N.V., which in turn held a 
55.6% equity interest in Pargesa at March 31, 2013. Pargesa's contribution to 
Power Financial's operating earnings, expressed in Canadian dollars, was a 
charge of $5 million for the three-month period ended March 31, 2013, compared 
with a charge of $3million in the corresponding period in 2012. 
DIVIDENDS ON PREFERRED SHARES
The Board of Directors today declared quarterly dividends on the Corporation's 
preferred shares, as follows: 
 ____________________________________________________________________
|SERIES - STOCK     |RECORD DATE  |PAYMENT DATE   |AMOUNT            |
|SYMBOL             |             |               |                  |
|___________________|_____________|_______________|__________________|
|Series A - PWF.PR.A|July 25, 2013|August 15, 2013|At a floating rate|
|                   |             |               |equal to one      |
|                   |             |               |quarter of 70% of |
|                   |             |               |the average       |
|                   |             |               |prime rate of two |
|                   |             |               |major Canadian    |
|                   |             |               |chartered banks(  |
|                   |             |               |[1])              |
|___________________|_____________|_______________|__________________|
|Series D - PWF.PR.E|July 10, 2013|July 31, 2013  |34.375¢           |
|___________________|_____________|_______________|__________________|
|Series E - PWF.PR.F|July 10, 2013|July 31, 2013  |32.8125¢          |
|___________________|_____________|_______________|__________________|
|Series F - PWF.PR.G|July 10, 2013|July 31, 2013  |36.875¢           |
|___________________|_____________|_______________|__________________|
|Series H - PWF.PR.H|July 10, 2013|July 31, 2013  |35.9375¢          |
|___________________|_____________|_______________|__________________|
|Series I - PWF.PR.I|July 10, 2013|July 31, 2013  |37.50¢            |
|___________________|_____________|_______________|__________________|
|Series K - PWF.PR.K|July 10, 2013|July 31, 2013  |30.9375¢          |
|___________________|_____________|_______________|__________________|
|Series L - PWF.PR.L|July 10, 2013|July 31, 2013  |31.875¢           |
|___________________|_____________|_______________|__________________|
|Series M - PWF.PR.M|July 10, 2013|July 31, 2013  |37.50¢            |
|___________________|_____________|_______________|__________________|
|Series O - PWF.PR.O|July 10, 2013|July 31, 2013  |36.25¢            |
|___________________|_____________|_______________|__________________|
|Series P - PWF.PR.P|July 10, 2013|July 31, 2013  |27.50¢            |
|___________________|_____________|_______________|__________________|
|Series R - PWF.PR.R|July 10, 2013|July 31, 2013  |34.375¢           |
|___________________|_____________|_______________|__________________|
|Series S - PWF.PR.S|July 10, 2013|July 31, 2013  |30¢               |
|___________________|_____________|_______________|__________________| 
([1]) In accordance with the articles of the Corporation 
DIVIDEND ON COMMON SHARES
The Board of Directors also declared a quarterly dividend of 35 cents per 
share on the Corporation's common shares payable August 1, 2013 to 
shareholders of record on June28,2013. 
For purposes of the Income Tax Act (Canada) and any similar provincial 
legislation, all of the above dividends on the Corporation's preferred and 
common shares are eligible dividends. 
ABOUT POWER FINANCIAL
Power Financial Corporation is a diversified management and holding company 
that has interests, directly or indirectly, in companies in the financial 
services sector in Canada, the United States and Europe. It also has 
substantial holdings in a diversified industrial group based in Europe. Power 
Financial Corporation is a member of the Power Corporation group of companies. 
To learn more, visit www.powerfinancial.com. 
EARNINGS SUMMARY                                                  


                                                                 

(unaudited)                                  Three months ended      
                                          March 31,   March 31,
                                               2013        2012 ((1))

Contribution to operating earnings from                              
subsidiaries and Parjointco                                    
    Lifeco                                      353         306      
    IGM                                         107         114      
    Pargesa ((2))                               (5)         (3)      
                                                455         417      

Results from corporate activities              (16)        (17)      

Dividends on perpetual preferred shares        (32)        (29)      

Operating earnings attributable to common                            
shareholders                                    407         371

Other items (see below)                        (13)          83      

Net earnings attributable to common                                  
shareholders                                    394         454

Earnings per share                                                   
(attributable to common shareholders)                          
    - operating earnings                       0.57        0.52      
    - non-operating earnings                 (0.02)        0.12      
    - net earnings                             0.55        0.64      
                                                                 

OTHER ITEMS                                                      
                                                                 

(unaudited)                                  Three months ended      
                                          March 31,   March 31,
                                               2013        2012      

Share of Pargesa's other items                                       
    Impairment charge on GDF Suez              (13)                  
    Gain on partial disposal of Pernod                       46      
    Ricard                                           
    Gain on disposal of Arkema                               43      
    Other (charge) income                                   (6)      
                                               (13)          83      

(1) Effective January 1, 2013, the Corporation adopted revised IAS 19
    (IAS 19R), Employee Benefits.
    In accordance with the required transitional provisions, the
    Corporation retrospectively applied
    the revised standard. The 2012 comparative financial information
    in this report has been
    restated accordingly.

(2) Power Financial has a 50% interest in Parjointco N.V., which in
    turn held a 55.6% equity
    interest in Pargesa at March 31, 2013.


Non-IFRS Financial Measures
In analyzing the financial results of the Corporation and consistent with the 
presentation in previous years, net earnings attributable to common 
shareholders are classified into the following components: 


    --  operating earnings attributable to common shareholders; and
    --  other items or non-operating earnings, which include the
        after-tax impact of any item that management considers to be of
        a non-recurring nature or that could make the
        period-over-period comparison of results from operations less
        meaningful, and also include the Corporation's share of any
        such item presented in a comparable manner by its subsidiaries
        and jointly controlled corporation.

However, management uses these financial measures in its presentation and 
analysis of the financial performance of Power Financial, and believes that 
they provide additional meaningful information to readers in their analysis of 
the results of the Corporation.

Operating earnings attributable to common shareholders and operating earnings 
per share are non-IFRS financial measures that do not have a standard meaning 
and may not be comparable to similar measures used by other entities.

Forward-Looking Statements
Certain statements in this News Release, other than statements of historical 
fact, are forward-looking statements based on certain assumptions and reflect 
the Corporation's current expectations, or with respect to disclosure 
regarding the Corporation's public subsidiaries, reflect such subsidiaries' 
disclosed current expectations. Forward-looking statements are provided for 
the purposes of assisting the reader in understanding the Corporation's 
financial performance, financial position and cash flows as at and for the 
periods ended on certain dates and to present information about management's 
current expectations and plans relating to the future and the reader is 
cautioned that such statements may not be appropriate for other purposes. 
These statements may include, without limitation, statements regarding the 
operations, business, financial condition, expected financial results, 
performance, prospects, opportunities, priorities, targets, goals, ongoing 
objectives, strategies and outlook of the Corporation and its subsidiaries, as 
well as the outlook for North American and international economies for the 
current fiscal year and subsequent periods. 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, interest and foreign exchange rates, global 
equity and capital markets, management of market liquidity and funding risks, 
changes in accounting policies and methods used to report financial condition 
(including uncertainties associated with critical accounting assumptions and 
estimates), the effect of applying future accounting changes, business 
competition, operational and reputational risks, technological change, changes 
in government regulation and legislation, changes in tax laws, unexpected 
judicial or regulatory proceedings, catastrophic events, the Corporation's and 
its subsidiaries' ability to complete strategic transactions, integrate 
acquisitions and implement other growth strategies, and the Corporation's and 
its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned to consider these and other factors, uncertainties and 
potential events carefully and not to put undue reliance on forward-looking 
statements. Information contained in forward-looking statements is based upon 
certain material assumptions that were applied in drawing a conclusion or 
making a forecast or projection, including management's perceptions of 
historical trends, current conditions and expected future developments, as 
well as other considerations that are believed to be appropriate in the 
circumstances, including that the list of factors in the previous paragraph, 
collectively, are not expected to have a material impact on the Corporation 
and its subsidiaries. While the Corporation considers these assumptions to be 
reasonable based on information currently available to management, they may 
prove to be incorrect.

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

Additional information about the risks and uncertainties of the Corporation's 
business and material factors or assumptions on which information contained in 
forward-looking statements is based is provided in its disclosure materials, 
including its most recent Management's Discussion and Analysis and Annual 
Information Form, filed with the securities regulatory authorities in Canada 
and available at www.sedar.com.



Mr. Stéphane Lemay Vice-President, General Counsel and Secretary 514-286-7400

SOURCE: POWER FINANCIAL CORPORATION

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/May2013/14/c6557.html

CO: POWER FINANCIAL CORPORATION
ST: Quebec
NI: FIN ERN DIV FIN 

-0- May/14/2013 16:06 GMT


 
Press spacebar to pause and continue. Press esc to stop.