Third Quarter Report. For the period ended September 30, 2016

3 Third Quarter Report For the period ended September 30, 2016

TO THE SHAREHOLDERS Power Corporation of Canada s operating earnings attributable to participating shareholders (a non-ifrs inancial measure) for the quarter ended September, were $ million or $. per share, compared with $ million or $. per share in. Net earnings attributable to participating shareholders were $ million or $. per share, compared with $ million or $. per share in. NINE MONTH RESULTS Operating earnings attributable to participating shareholders for the nine months ended September, were $ million or $. per share, compared with $, million or $. per share in. Non-operating items, not included in operating earnings, resulted in a net charge of $ million which was mainly comprised of the Corporation s share of Groupe Bruxelles Lambert s (GBL) non-cash impairment charge as a result of a decrease in LafargeHolcim Ltd s share price, partially offset by a gain on the partial disposal of its interest in Total SA. Net earnings attributable to participating shareholders were $ million or $. per share, compared with $, million or $. per share in. RESULTS OF POWER FINANCIAL CORPORATION THIRD QUARTER RESULTS Power Financial reported operating earnings attributable to common shareholders for the quarter ended September, of $ million or $. per share, compared with $ million or $. per share in. Net earnings attributable to common shareholders were $ million or $. per share, compared with $ million or $. per share in. NINEMONTH RESULTS Operating earnings attributable to common shareholders for the nine months ended September, were $, million or $. per share, compared with $, million or $. per share in. Non-operating items, not included in operating earnings, were a net charge of $ million representing Power Financial s share of GBL s non-operating items, as discussed above. POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 1

Net earnings attributable to common shareholders were $, million or $. per share, compared with $, million or $. per share in. At September,, Power Corporation held a.% economic interest in Power Financial. Power Financial s contribution to Power Corporation s operating earnings was $ million for the quarter ended September,, compared with $ million in. For the nine months ended September,, Power Financial contributed $, million to Power Corporation s operating earnings, compared with $, million in. INCOME FROM INVESTMENTS THIRD QUARTER RESULTS Income from investments represented a gain of $ million for the quarter ended September,, compared with $ million in. The fair value of investments at the end of the quarter was $, million, compared with $, million at the end of. NINEMONTH RESULTS Income from investments represented a loss of $ million for the nine-month period ended September,, compared with a gain of $ million in. On behalf of the Board of Directors, Signed, Paul Desmarais, Jr.,..,.. Chairman and Co-Chief Executive Oficer Signed, André Desmarais,..,.. Deputy Chairman, President and Co-Chief Executive Oficer November, 2 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Power Corporation of Canada TABLE OF CONTENTS PART A POWER CORPORATION OF CANADA This document contains management s discussion and analysis of the financial condition and financial performance of Power Corporation of Canada (the Corporation) for the three months and nine months ended September 30, 2016 and the unaudited interim condensed consolidated financial statements of the Corporation as at and for the three months and nine months ended September 30, 2016. This document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada and mailed to shareholders of the Corporation in accordance with applicable securities laws. PART B POWER FINANCIAL CORPORATION Power Corporation of Canada PART A Power Financial Corporation PART B PART C GREAT-WEST LIFECO INC. Great-West Lifeco Inc. PART C IGM Financial Inc. PART D Pargesa Holding SA PART D IGM FINANCIAL INC. PART E POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 3 PART E PARGESA HOLDING SA

The trademarks contained in this report are owned by Power Corporation of Canada or by a Member of the Power Corporation Group of Companies TM. Trademarks that are not owned by Power Corporation are used with permission. 4 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Power Corporation of Canada PART A PART A POWER CORPORATION OF CANADA Management s Discussion and Analysis PAGE A 2 Financial Statements and Notes PAGE A 36 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 1

PART A POWER CORPORATION OF CANADA POWERCORPORATIONOFCANADA MANAGEMENT SDISCUSSIONANDANALYSIS A 2 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

ORGANIZATIONOFTHEINTERIMMD&A PART A POWER CORPORATION OF CANADA OVERVIEW POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 3

PART A POWER CORPORATION OF CANADA Lifeco IGMFinancial PowerFinancial Pargesa POWERCORPORATION A 4 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

POWERFINANCIAL Lifeco PART A POWER CORPORATION OF CANADA IGMFinancial POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 5

PART A POWER CORPORATION OF CANADA PargesaandGBL Portag3 Wealthsimple A 6 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

SAGARDINVESTMENTFUNDS SagardEurope PART A POWER CORPORATION OF CANADA SagardCapital POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 7

PART A POWER CORPORATION OF CANADA SagardChina September30, 2016 116 316 230 662 OTHERSUBSIDIARIES PowerEnergy SquareVictoriaCommunicationsGroup La Presse ControlledPortfolioInvestments OTHERINVESTMENTS A 8 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

BASISOFPRESENTATION Interim Financial Reporting PART A POWER CORPORATION OF CANADA Control BasisofAccounting EarningsandOther ComprehensiveIncome ImpairmentTesting ImpairmentReversal POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 9

PART A POWER CORPORATION OF CANADA PowerFinancial PowerEnergy SquareVictoriaCommunicationsGroup GBL SagardEurope SagardCapital SagardChina A 10 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART A POWER CORPORATION OF CANADA NON-IFRSFINANCIALMEASURESANDPRESENTATION operatingearnings other items non-operating earnings POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 11

PART A POWER CORPORATION OF CANADA RESULTSOFPOWERCORPORATIONOFCANADA EARNINGSSUMMARY CONDENSEDSUPPLEMENTARYNON-CONSOLIDATEDSTATEMENTSOFEARNINGS September 30, 2016 September30, 2016 Operatingearnings 1,033 355 (50) (12) 983 343 (45) 4 (98) (30) (39) (13) 801 304 Otheritems(non-operatingearnings) (178) (1) (178) (1) Netearnings(attributabletoparticipatingshareholders) 623 303 Earningspershare(attributabletoparticipatingshareholders) 1.72 0.65 (0.38) 1.34 0.65 NETEARNINGS A 12 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

OPERATINGEARNINGS PART A POWER CORPORATION OF CANADA CONTRIBUTIONTOOPERATINGEARNINGS PowerFinancial September 30, 2016 September 30, 2016 1,331 459 330 122 104 19 1,765 600 (98) (28) (93) (31) 1,574 541 1,033 355 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 13

PART A POWER CORPORATION OF CANADA September 30, 2016 September30, 2016 Canada 242 70 304 99 302 110 44 10 892 289 UnitedStates 253 89 (49) (6) (10) (5) 194 78 Europe 702 251 191 54 8 893 313 LifecoCorporate (14) (6) 1,965 674 1,331 459 A 14 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART A POWER CORPORATION OF CANADA September 30, 2016 September 30, 2016 536 199 123 46 99 34 758 279 (220) (81) 538 198 330 122 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 15

PART A POWER CORPORATION OF CANADA September 30, 2016 78.9 64.3 (3.3) 139.9 2016 Q3 78.1 49.6 4.5 132.2 A 16 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART A POWER CORPORATION OF CANADA September 30, 2016 September30, 2016 85 28 45 41 10 11 24 11 14 7 26 13 256 59 30 5 10 (6) 5 1 (20) (6) 281 53 104 19 September30, 2016 September30, 2016 1.09 1.09 1.35 1.34 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 17

PART A POWER CORPORATION OF CANADA Othersubsidiaries CORPORATEOPERATIONSOFPOWERCORPORATION Incomefrominvestments September 30, 2016 September 30, 2016 (5) (1) (39) 7 (10) (1) 12 6 (9) (1) (45) 4 A 18 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

September 30, 2016 September 30, 2016 48 2 21 3 4 73 5 PART A POWER CORPORATION OF CANADA Operatingandotherexpenses September 30, September 30, 2016 2016 65 19 24 8 8 3 1 98 30 OTHERITEMS September 30, 2016 September 30, 2016 67 (237) (6) (2) (1) (178) (1) (178) (1) POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 19

PART A POWER CORPORATION OF CANADA PowerFinancial PowerFinancial Othersubsidiaries Corporateoperations A 20 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

FINANCIALPOSITION CONSOLIDATEDBALANCESHEETS PART A POWER CORPORATION OF CANADA September 30, 2016 Assets 5,045 171,203 2,893 422 12,558 5,304 12,358 6,192 9,789 199,162 424,926 Liabilities 161,700 7,514 7,792 14,362 199,162 390,530 Equity 968 12,619 20,809 34,396 424,926 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 21

PART A POWER CORPORATION OF CANADA NON-CONSOLIDATEDBALANCESHEETS September30, 2016 Assets 819 1,875 10,882 328 377 14,281 Liabilities 400 294 694 Equity 968 12,619 13,587 14,281 A 22 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Cashandcashequivalents Investments PART A POWER CORPORATION OF CANADA Fairvalueof non-controlled portfolio investments [1] 276 358 432 1,066 390 419 1,875 Fairvalueof non-controlled portfolio investments [1] 194 470 498 1,162 310 494 1,966 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 23

PART A POWER CORPORATION OF CANADA InvestmentsinPowerFinancialandOthersubsidiaries EQUITY Non-participatingshares Participatingshareholders equity 2016 13,058 662 (494) (137) 31 (713) 240 (352) 345 10 (470) 12,619 A 24 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Outstandingnumberofparticipatingshares PART A POWER CORPORATION OF CANADA CASHFLOWS CONSOLIDATEDSTATEMENTSOFCASHFLOWS 2016 5,278 (1,676) (3,444) (198) (40) 5,085 5,045 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 25

PART A POWER CORPORATION OF CANADA NON-CONSOLIDATEDSTATEMENTSOFCASHFLOWS 2016 Operatingactivities 662 (263) 73 (52) 1 421 Financingactivities (39) (455) (1) (495) Investingactivities 682 (408) (187) (15) 72 (10) (12) 831 Cashandcashequivalents,atSeptember30 819 A 26 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART A POWER CORPORATION OF CANADA CAPITALMANAGEMENT POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 27

PART A POWER CORPORATION OF CANADA September30, 2016 Debenturesandotherdebtinstruments 400 250 5,126 1,325 734 (43) 7,792 Non-participatingshares 968 2,580 2,514 150 6,212 Equity 12,619 15,565 28,184 42,188 A 28 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

RATINGS PART A POWER CORPORATION OF CANADA RISKMANAGEMENT POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 29

PART A POWER CORPORATION OF CANADA OWNERSHIPOFCOMMONANDPREFERREDSHARES LAWS,RULESANDREGULATIONS FINANCIALINSTRUMENTSRISK A 30 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

FINANCIALINSTRUMENTS DERIVATIVEFINANCIALINSTRUMENTS PART A POWER CORPORATION OF CANADA September 30,2016 38 13 20,770 625 (1,453) 3,312 54 137 (3) 24,270 679 (1,456) OFF-BALANCESHEETARRANGEMENTS GUARANTEES LETTERSOFCREDIT POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 31

PART A POWER CORPORATION OF CANADA CONTINGENTLIABILITIES COMMITMENTSANDCONTRACTUALOBLIGATIONS INCOMETAXES(NON-CONSOLIDATEDBASIS) TRANSACTIONSWITHRELATEDPARTIES SUMMARYOFCRITICALACCOUNTINGESTIMATESANDJUDGMENTS A 32 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

CHANGESINACCOUNTINGPOLICIES FUTUREACCOUNTINGCHANGES PART A POWER CORPORATION OF CANADA IFRS4 INSURANCECONTRACTS Insurance Contracts, IFRS9 FINANCIALINSTRUMENTS Financial Instruments, Financial Instruments: Recognition and Measurement Financial Instruments Insurance Contracts Deferral Approach Overlay Approach POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 33

PART A POWER CORPORATION OF CANADA IFRS15 REVENUEFROMCONTRACTSWITHCUSTOMERS Revenue from Contracts with Customers IFRS16 LEASES Leases, INTERNALCONTROLOVERFINANCIALREPORTING A 34 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

SUMMARYOFQUARTERLYRESULTS 2016 Q3 14,503 304 0.65 (1) PART A POWER CORPORATION OF CANADA 303 0.65 0.65 2016 Q3 (1) (1) (1) POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 35

PART A POWER CORPORATION OF CANADA POWERCORPORATIONOFCANADA September30, 2016 Assets 5,045 118,304 29,683 10,396 4,448 8,372 171,203 12,558 5,304 3,315 1,695 679 8,056 1,928 6,192 9,789 199,162 Totalassets 424,926 Liabilities 159,609 2,091 7,514 7,792 2,135 10,358 1,869 199,162 Totalliabilities 390,530 Equity 968 683 10,555 1,381 13,587 20,809 Totalequity 34,396 Totalliabilitiesandequity 424,926 A 36 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

2016 2016 Revenues 9,301 25,061 (967) (2,841) 8,334 22,220 1,543 4,773 2,307 7,850 3,850 12,623 1,938 5,698 381 1,121 14,503 41,662 Expenses 7,452 20,237 (545) (1,518) 6,907 18,719 404 1,154 3,278 10,429 10,589 30,302 813 2,434 1,984 5,932 121 367 13,507 39,035 996 2,627 (3) (188) 993 2,439 168 372 Netearnings 825 2,067 Attributableto 509 1,405 13 39 303 623 825 2,067 Earningsperparticipatingshare 0.65 1.34 0.65 1.34 PART A POWER CORPORATION OF CANADA POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 37

PART A POWER CORPORATION OF CANADA 2016 2016 Netearnings 825 2,067 Othercomprehensiveincome(loss) Itemsthatmaybereclassifiedsubsequentlytonetearnings 199 404 (4) (45) (27) (45) 4 6 172 320 (5) 71 2 (27) 1 2 (1) (1) (3) 45 78 (1,495) (15) 15 2 (2) 65 (1,482) 343 532 Total itemsthatmaybereclassified 577 (585) Itemsthatwillnotbereclassifiedsubsequentlytonetearnings (271) (877) 53 188 (9) (6) Total itemsthatwillnotbereclassified (227) (695) Othercomprehensiveincome(loss) 350 (1,280) Totalcomprehensiveincome 1,175 787 Attributableto 547 605 13 39 615 143 1,175 787 A 38 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Balance,beginningofyear Balance,endofperiod PART A POWER CORPORATION OF CANADA POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 39

PART A POWER CORPORATION OF CANADA 2016 Operatingactivities 2,439 (326) 10,359 481 32 (99) (7,850) 242 5,278 Financingactivities (914) (39) (455) (1,408) (1) 41 (423) (122) (160) 416 (19) (1,676) Investmentactivities 22,538 1,983 2,662 373 12 (45) (24,457) (3,273) (2,906) (331) (3,444) (198) (40) 5,085 Cashandcashequivalents,endofperiod 5,045 Netcashfromoperatingactivitiesincludes 4,376 395 A 40 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART A POWER CORPORATION OF CANADA NOTE1CORPORATEINFORMATION NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES InterimFinancialReporting POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 41

PART A POWER CORPORATION OF CANADA NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES BASISOFPRESENTATION A 42 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES USEOFSIGNIFICANTJUDGMENTS,ESTIMATESANDASSUMPTIONS PART A POWER CORPORATION OF CANADA FUTUREACCOUNTINGCHANGES IFRS9 FinancialInstruments FinancialInstruments, FinancialInstruments:Recognitionand Measurement InsuranceContracts FinancialInstrumentsInsuranceContracts POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 43

PART A POWER CORPORATION OF CANADA NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES IFRS15 RevenuefromContractswithCustomers RevenuefromContractswithCustomers, IFRS16 Leases Leases, A 44 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE3ACQUISITIONS POWERENERGYCORPORATION LIFECO PART A POWER CORPORATION OF CANADA POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 45

PART A POWER CORPORATION OF CANADA NOTE4INVESTMENTS CARRYINGVALUESANDFAIRVALUES NOTE5INVESTMENTSINJOINTLYCONTROLLEDCORPORATIONSANDASSOCIATES A 46 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE6SEGREGATEDFUNDS INVESTMENTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS PART A POWER CORPORATION OF CANADA INSURANCEANDINVESTMENTCONTRACTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS INVESTMENTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 47

PART A POWER CORPORATION OF CANADA NOTE6SEGREGATEDFUNDS NOTE7INSURANCEANDINVESTMENTCONTRACTLIABILITIES INSURANCEANDINVESTMENTCONTRACTLIABILITIES A 48 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE8STATEDCAPITAL AUTHORIZED ISSUEDANDOUTSTANDING PART A POWER CORPORATION OF CANADA NonParticipatingShares ParticipatingShares TotalParticipatingShares NonParticipatingShares ParticipatingShares POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 49

PART A POWER CORPORATION OF CANADA NOTE9SHAREBASEDCOMPENSATION STOCKOPTIONPLAN Compensationexpense,, A 50 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE10CAPITALMANAGEMENT PART A POWER CORPORATION OF CANADA LIFECO InsuranceCompaniesAct POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 51

PART A POWER CORPORATION OF CANADA NOTE10CAPITALMANAGEMENT IGMFINANCIAL NOTE11RISKMANAGEMENT A 52 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT POWERCORPORATION,POWERFINANCIALANDOTHERSUBSIDIARIES Liquidityrisk PART A POWER CORPORATION OF CANADA Creditrisk POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 53

PART A POWER CORPORATION OF CANADA NOTE11RISKMANAGEMENT Marketrisk a) Currencyrisk b) Interestraterisk c) Equitypricerisk A 54 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT LIFECO PART A POWER CORPORATION OF CANADA Liquidityrisk Creditrisk Marketrisk a) Currencyrisk POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 55

PART A POWER CORPORATION OF CANADA NOTE11RISKMANAGEMENT b) Interestraterisk Changeininterestrates A 56 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT c) Equitypricerisk PART A POWER CORPORATION OF CANADA Changeinequityvalues Changeinbestestimatereturnassumptions POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 57

PART A POWER CORPORATION OF CANADA NOTE11RISKMANAGEMENT IGMFINANCIAL Liquidityrisk Creditrisk A 58 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT Marketrisk a) Currencyrisk b) Interestraterisk PART A POWER CORPORATION OF CANADA c) Equitypricerisk NOTE12PENSIONPLANSANDOTHERPOSTEMPLOYMENTBENEFITS POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 59

PART A POWER CORPORATION OF CANADA NOTE13INCOMETAXES INCOMETAXEXPENSE EFFECTIVEINCOMETAXRATE DEFERREDTAXASSETS A 60 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE14OTHERCOMPREHENSIVEINCOME PART A POWER CORPORATION OF CANADA NOTE15EARNINGSPERSHARE Earnings Numberofparticipatingshares Netearningsperparticipatingshare POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 61

PART A POWER CORPORATION OF CANADA NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS A 62 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS Financialassetsrecordedatfairvalue Financialliabilitiesrecordedatfairvalue PART A POWER CORPORATION OF CANADA Financialassetsrecordedatfairvalue Financialliabilitiesrecordedatfairvalue POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 63

PART A POWER CORPORATION OF CANADA NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS A 64 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS Typeofasset Valuationapproach Significant unobservableinput Inputvalue Interrelationshipbetween keyunobservableinputs andfairvaluemeasurement PART A POWER CORPORATION OF CANADA POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 65

PART A POWER CORPORATION OF CANADA NOTE17SEGMENTEDINFORMATION A 66 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues PART A POWER CORPORATION OF CANADA Expenses Contributiontonetearnings Attributableto POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 67

PART A POWER CORPORATION OF CANADA NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues Expenses Contributiontonetearnings Attributableto A 68 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues PART A POWER CORPORATION OF CANADA Expenses Contributiontonetearnings Attributableto POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 69

PART A POWER CORPORATION OF CANADA NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues Expenses Contributiontonetearnings Attributableto A 70 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE17SEGMENTEDINFORMATION TOTALASSETS PART A POWER CORPORATION OF CANADA NOTE18SUBSEQUENTEVENT POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 A 71

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Power Financial Corporation PART B Management s Discussion and Analysis PAGE B 2 Financial Statements and Notes PAGE B 30 PART B POWER FINANCIAL CORPORATION The attached documents concerning Power Financial Corporation are documents prepared and publicly disclosed by such subsidiary. Certain statements in the attached documents, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the current expectations of the subsidiary as set forth therein. Forwardlooking statements are provided for the purposes of assisting the reader in understanding the subsidiary s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about the subsidiary s 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. By its nature, forward-looking 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. For further information provided by the subsidiary as to the material factors that could cause actual results to differ materially from the content of forwardlooking statements, the material factors and assumptions that were applied in making the forward-looking statements, and the subsidiary s policy for updating the content of forward-looking statements, please see the attached documents, including the section entitled Forward-Looking Statements. The reader is cautioned to consider these factors and assumptions carefully and not to put undue reliance on forward-looking statements. POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 1

POWERFINANCIALCORPORATION MANAGEMENT SDISCUSSIONANDANALYSIS PART B POWER FINANCIAL CORPORATION B 2 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

ORGANIZATIONOFTHEINTERIMMD&A OVERVIEW PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 3

POWERFINANCIAL PART B POWER FINANCIAL CORPORATION Lifeco IGMFinancial Pargesa LIFECO UnitedKingdomReferendum B 4 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

IGMFINANCIAL PARGESAANDGBL PART B POWER FINANCIAL CORPORATION PORTAG3 WEALTHSIMPLE POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 5

BASISOFPRESENTATION Interim Financial Reporting PART B POWER FINANCIAL CORPORATION Control BasisofAccounting EarningsandOther ComprehensiveIncome ImpairmentTesting ImpairmentReversal B 6 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

GBL PART B POWER FINANCIAL CORPORATION NON-IFRSFINANCIALMEASURESANDPRESENTATION operatingearnings other items non-operating earnings POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 7

RESULTSOFPOWERFINANCIALCORPORATION EARNINGSSUMMARY CONDENSEDSUPPLEMENTARYNON-CONSOLIDATEDSTATEMENTSOFEARNINGS PART B POWER FINANCIAL CORPORATION September 30, 2016 September 30, 2016 Operatingearnings 1,331 459 330 122 104 19 1,765 600 (98) (28) (93) (31) 1,574 541 Otheritems(non-operatingearnings) [1] (271) (2) (271) (2) Netearnings(attributabletocommonshareholders) 1,303 539 Earningspershare(attributabletocommonshareholders) 2.21 0.76 (0.38) 1.83 0.76 NETEARNINGS OPERATINGEARNINGS B 8 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

CONTRIBUTIONTOOPERATINGEARNINGSLIFECO,IGMANDPARGESA Lifeco PART B POWER FINANCIAL CORPORATION September 30, 2016 September 30, 2016 Canada 242 70 304 99 302 110 44 10 892 289 UnitedStates 253 89 (49) (6) (10) (5) 194 78 Europe 702 251 191 54 8 893 313 LifecoCorporate (14) (6) 1,965 674 1,331 459 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 9

PART B POWER FINANCIAL CORPORATION B 10 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

IGMFinancial September 30, 2016 September 30, 2016 PART B POWER FINANCIAL CORPORATION 536 199 123 46 99 34 758 279 (220) (81) 538 198 330 122 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 11

PART B POWER FINANCIAL CORPORATION September 30, 2016 78.9 64.3 (3.3) 139.9 2016 Q3 78.1 49.6 4.5 132.2 B 12 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Pargesa September 30, 2016 September30, 2016 85 28 45 41 10 11 24 11 14 7 26 13 256 59 30 5 10 (6) 5 1 (20) (6) 281 53 PART B POWER FINANCIAL CORPORATION 104 19 September30, 2016 September30, 2016 1.09 1.09 1.35 1.34 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 13

PART B POWER FINANCIAL CORPORATION CORPORATEOPERATIONSOFPOWERFINANCIAL September 30, 2016 September 30, 2016 (14) (56) (19) (13) (4) (2) (1) (13) (4) (84) (28) (98) (28) B 14 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

OTHERITEMS September 30, 2016 September 30, 2016 101 (360) (9) (3) (2) (271) (2) Pargesa PART B POWER FINANCIAL CORPORATION Pargesa POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 15

FINANCIALPOSITION CONSOLIDATEDBALANCESHEETS PART B POWER FINANCIAL CORPORATION September30, 2016 Assets 4,238 168,948 2,893 280 12,558 5,304 11,272 5,866 9,319 199,162 419,840 Liabilities 161,700 7,514 6,658 13,263 199,162 388,297 Equity 2,580 16,589 12,374 31,543 419,840 B 16 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NON-CONSOLIDATEDBALANCESHEETS September30, 2016 PART B POWER FINANCIAL CORPORATION Assets 875 62 13,154 2,839 2,893 118 19,941 Liabilities 250 522 772 Equity 2,580 16,589 19,169 19,941 Cashandcashequivalents POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 17

InvestmentinLifeco,IGMandParjointco PART B POWER FINANCIAL CORPORATION EQUITY Preferredshares Commonshareholders equity 2016 16,970 1,396 (933) (149) 314 (955) 131 (412) 534 7 (695) 16,589 B 18 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Outstandingnumberofcommonshares CASHFLOWS CONSOLIDATEDSTATEMENTSOFCASHFLOWS 2016 5,334 (1,642) (3,455) (187) 50 4,188 4,238 PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 19

NON-CONSOLIDATEDSTATEMENTSOFCASHFLOWS 2016 PART B POWER FINANCIAL CORPORATION Operatingactivities 1,396 (474) 26 948 Financingactivities (95) (826) Investingactivities (16) (6) 5 870 Cashandcashequivalents,atSeptember30 875 (921) (22) B 20 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

CAPITALMANAGEMENT PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 21

PART B POWER FINANCIAL CORPORATION September30, 2016 Debenturesandotherdebtinstruments 250 5,126 1,325 (43) 6,658 Preferredshares 2,580 2,514 150 5,244 Equity 16,589 9,710 26,299 38,201 RATINGS B 22 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

RISKMANAGEMENT PART B POWER FINANCIAL CORPORATION OWNERSHIPOFCOMMONANDPREFERREDSHARES POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 23

LAWS,RULESANDREGULATIONS PART B POWER FINANCIAL CORPORATION FINANCIALINSTRUMENTSRISK FINANCIALINSTRUMENTS DERIVATIVEFINANCIALINSTRUMENTS B 24 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

September 30,2016 13 20,770 625 (1,453) 3,312 54 24,095 679 (1,453) OFF-BALANCESHEETARRANGEMENTS PART B POWER FINANCIAL CORPORATION GUARANTEES LETTERSOFCREDIT CONTINGENTLIABILITIES COMMITMENTSANDCONTRACTUALOBLIGATIONS POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 25

INCOMETAXES(NON-CONSOLIDATEDBASIS) TRANSACTIONSWITHRELATEDPARTIES PART B POWER FINANCIAL CORPORATION SUMMARYOFCRITICALACCOUNTINGESTIMATESANDJUDGMENTS B 26 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

CHANGESINACCOUNTINGPOLICIES FUTUREACCOUNTINGCHANGES IFRS4 INSURANCECONTRACTS Insurance Contract IFRS9 FINANCIALINSTRUMENTS Financial Instruments, Financial Instruments: Recognition and Measurement Financial Instruments Insurance Contracts Deferral Approach Overlay Approach PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 27

IFRS15 REVENUEFROMCONTRACTSWITHCUSTOMERS Revenue from Contracts with Customers, PART B POWER FINANCIAL CORPORATION IFRS16 LEASES Leases, INTERNALCONTROLOVERFINANCIALREPORTING B 28 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

SUMMARYOFQUARTERLYRESULTS 2016 Q3 14,106 541 0.76 (2) 539 0.76 0.76 2016 Q3 (2) (2) PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 29

POWERFINANCIALCORPORATION September30, 2016 PART B POWER FINANCIAL CORPORATION Assets 4,238 118,044 29,683 8,401 4,448 8,372 168,948 12,558 5,304 3,173 1,118 679 7,558 1,917 5,866 9,319 199,162 Totalassets 419,840 Liabilities 159,609 2,091 7,514 6,658 2,132 9,327 1,804 199,162 Totalliabilities 388,297 Equity 2,580 804 14,597 1,188 19,169 12,374 Totalequity 31,543 Totalliabilitiesandequity 419,840 B 30 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

2016 2016 Revenues 9,301 25,061 (967) (2,841) 8,334 22,220 1,527 4,778 2,307 7,850 3,834 12,628 1,938 5,698 14,106 40,546 Expenses 7,452 20,237 (545) (1,518) 6,907 18,719 404 1,154 3,278 10,429 10,589 30,302 813 2,434 1,578 4,702 101 309 13,081 37,747 1,025 2,799 3 (176) 1,028 2,623 168 365 Netearnings 860 2,258 Attributableto 290 862 31 93 539 1,303 860 2,258 Earningspercommonshare 0.76 1.83 0.76 1.82 PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 31

PART B POWER FINANCIAL CORPORATION 2016 2016 Netearnings 860 2,258 Othercomprehensiveincome(loss) Itemsthatmaybereclassifiedsubsequentlytonetearnings 35 277 (4) (50) (21) (70) 2 9 12 166 (5) 71 2 (27) 1 2 (1) (1) (3) 45 63 (1,408) (15) 15 2 (2) 50 (1,395) 343 540 Total itemsthatmaybereclassified 402 (644) Itemsthatwillnotbereclassifiedsubsequentlytonetearnings (251) (795) 53 188 (9) (6) Total itemsthatwillnotbereclassified (207) (613) Othercomprehensiveincome(loss) 195 (1,257) Totalcomprehensiveincome 1,055 1,001 Attributableto 246 307 31 93 778 601 1,055 1,001 B 32 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Balance,beginningofyear Balance,endofperiod PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 33

2016 PART B POWER FINANCIAL CORPORATION Operatingactivities 2,623 (324) 10,359 481 32 (99) (7,850) 112 5,334 Financingactivities (535) (95) (826) (1,456) 23 (423) (188) 416 (14) (1,642) Investmentactivities 22,228 1,983 1,980 373 12 (33) (24,077) (3,273) (2,458) (190) (3,455) (187) 50 4,188 Cashandcashequivalents,endofperiod 4,238 Netcashfromoperatingactivitiesincludes 4,374 362 B 34 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE1CORPORATEINFORMATION PART B POWER FINANCIAL CORPORATION NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES InterimFinancialReporting POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 35

PART B POWER FINANCIAL CORPORATION NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES BASISOFPRESENTATION USEOFSIGNIFICANTJUDGMENTS,ESTIMATESANDASSUMPTIONS B 36 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES FUTUREACCOUNTINGCHANGES IFRS9 FinancialInstruments FinancialInstruments, FinancialInstruments:Recognitionand Measurement InsuranceContracts FinancialInstrumentsInsuranceContracts PART B POWER FINANCIAL CORPORATION IFRS15 RevenuefromContractswithCustomers RevenuefromContractswithCustomers, POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 37

NOTE2BASISOFPRESENTATIONANDSUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES IFRS16 Leases Leases, PART B POWER FINANCIAL CORPORATION NOTE3BUSINESSACQUISITIONS B 38 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE4INVESTMENTS CARRYINGVALUESANDFAIRVALUES PART B POWER FINANCIAL CORPORATION NOTE5INVESTMENTSINJOINTLYCONTROLLEDCORPORATIONSANDASSOCIATES POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 39

NOTE6SEGREGATEDFUNDS INVESTMENTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS PART B POWER FINANCIAL CORPORATION INSURANCEANDINVESTMENTCONTRACTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS B 40 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE6SEGREGATEDFUNDS INVESTMENTSONACCOUNTOFSEGREGATEDFUNDPOLICYHOLDERS PART B POWER FINANCIAL CORPORATION NOTE7INSURANCEANDINVESTMENTCONTRACTLIABILITIES INSURANCEANDINVESTMENTCONTRACTLIABILITIES POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 41

NOTE8STATEDCAPITAL AUTHORIZED ISSUEDANDOUTSTANDING PART B POWER FINANCIAL CORPORATION FirstPreferredShares(perpetual) CommonShares FirstPreferredShares CommonShares B 42 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE9SHAREBASEDCOMPENSATION STOCKOPTIONPLAN Compensationexpense PART B POWER FINANCIAL CORPORATION, POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 43

NOTE10CAPITALMANAGEMENT PART B POWER FINANCIAL CORPORATION LIFECO InsuranceCompaniesAct B 44 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE10CAPITALMANAGEMENT IGMFINANCIAL NOTE11RISKMANAGEMENT PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 45

NOTE11RISKMANAGEMENT POWERFINANCIAL Liquidityrisk PART B POWER FINANCIAL CORPORATION Creditrisk Marketrisk a) Currencyrisk B 46 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT b) Interestraterisk c) Equitypricerisk LIFECO PART B POWER FINANCIAL CORPORATION Liquidityrisk Creditrisk POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 47

NOTE11RISKMANAGEMENT PART B POWER FINANCIAL CORPORATION Marketrisk a) Currencyrisk b) Interestraterisk B 48 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT Changeininterestrates c) Equitypricerisk PART B POWER FINANCIAL CORPORATION Changeinequityvalues Changeinbestestimatereturnassumptions POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 49

NOTE11RISKMANAGEMENT IGMFINANCIAL Liquidityrisk PART B POWER FINANCIAL CORPORATION Creditrisk B 50 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE11RISKMANAGEMENT Marketrisk a) Currencyrisk b) Interestraterisk c) Equitypricerisk PART B POWER FINANCIAL CORPORATION NOTE12PENSIONPLANSANDOTHERPOSTEMPLOYMENTBENEFITS POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 51

NOTE13INCOMETAXES INCOMETAXEXPENSE PART B POWER FINANCIAL CORPORATION EFFECTIVEINCOMETAXRATE DEFERREDTAXASSETS B 52 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE14OTHERCOMPREHENSIVEINCOME PART B POWER FINANCIAL CORPORATION NOTE15EARNINGSPERSHARE Earnings Numberofcommonshares Netearningspercommonshare POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 53

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS PART B POWER FINANCIAL CORPORATION B 54 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS Financialassetsrecordedatfairvalue Financialliabilitiesrecordedatfairvalue PART B POWER FINANCIAL CORPORATION Financialassetsrecordedatfairvalue Financialliabilitiesrecordedatfairvalue POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 55

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS PART B POWER FINANCIAL CORPORATION B 56 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE16FAIRVALUEOFFINANCIALINSTRUMENTS Typeofasset Valuationapproach Significant unobservableinput Inputvalue Interrelationshipbetween keyunobservableinputsand fairvaluemeasurement PART B POWER FINANCIAL CORPORATION POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 57

NOTE17SEGMENTEDINFORMATION PART B POWER FINANCIAL CORPORATION B 58 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues Expenses Contributiontonetearnings PART B POWER FINANCIAL CORPORATION Attributableto POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 59

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues PART B POWER FINANCIAL CORPORATION Expenses Contributiontonetearnings Attributableto B 60 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues Expenses Contributiontonetearnings PART B POWER FINANCIAL CORPORATION Attributableto POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 B 61

NOTE17SEGMENTEDINFORMATION CONTRIBUTIONTONETEARNINGS Revenues PART B POWER FINANCIAL CORPORATION Expenses Contributiontonetearnings Attributableto TOTALASSETS B 62 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

Great-West Lifeco Inc. PART C Management s Discussion and Analysis PAGE C 2 Financial Statements and Notes PAGE C 41 Please note that the bottom of each page in Part C contains two different page numbers. A page number with the prefix C refers to the number of such page in this document and the page number without any prefix refers to the number of such page in the original document issued by Great-West Lifeco Inc. The attached documents concerning Great-West Lifeco Inc. are documents prepared and publicly disclosed by such subsidiary. Certain statements in the attached documents, other than statements of historical fact, are forwardlooking statements based on certain assumptions and reflect the current expectations of the subsidiary as set forth therein. Forward-looking statements are provided for the purposes of assisting the reader in understanding the subsidiary s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about the subsidiary s 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. PART C GREAT-WEST LIFECO INC. By its nature, forward-looking 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. For further information provided by the subsidiary as to the material factors that could cause actual results to differ materially from the content of forward-looking statements, the material factors and assumptions that were applied in making the forward-looking statements, and the subsidiary s policy for updating the content of forward-looking statements, please see the attached documents, including the section entitled Cautionary Note Regarding Forward-Looking Information. The reader is cautioned to consider these factors and assumptions carefully and not to put undue reliance on forwardlooking statements. POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 C 1

PART C GREAT-WEST LIFECO INC. C 2 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016

PART C GREAT-WEST LIFECO INC. POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 C 3

IGM Financial Inc. PART D Management s Discussion and Analysis PAGE D 2 Financial Statements and Notes PAGE D 50 Please note that the bottom of each page in Part D contains two different page numbers. A page number with the prefix D refers to the number of such page in this document and the page number without any prefix refers to the number of such page in the original document issued by IGM Financial Inc. The attached documents concerning IGM Financial Inc. are documents prepared and publicly disclosed by such subsidiary. Certain statements in the attached documents, other than statements of historical fact, are forwardlooking statements based on certain assumptions and reflect the current expectations of the subsidiary as set forth therein. Forward-looking statements are provided for the purposes of assisting the reader in understanding the subsidiary s financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about the subsidiary s 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. By its nature, forward-looking 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. PART D IGM FINANCIAL INC. For further information provided by the subsidiary as to the material factors that could cause actual results to differ materially from the content of forwardlooking statements, the material factors and assumptions that were applied in making the forward-looking statements, and the subsidiary s policy for updating the content of forward-looking statements, please see the attached documents, including the section entitled Forward-Looking Statements. The reader is cautioned to consider these factors and assumptions carefully and not to put undue reliance on forward-looking statements. POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016 D 1

MANAGEMENT S DISCUSSION AND ANALYSIS The Management s Discussion and Analysis (MD&A) presents management s view of the results of operations and financial condition of IGM Financial Inc. (IGM Financial or the Company) as at and for the three and nine months ended September 30, 2016 and should be read in conjunction with the unaudited Interim Condensed Consolidated Financial Statements (Interim Financial Statements) as well as the 2015 IGM Financial Inc. Annual Report and the 2016 IGM Financial Inc. First and Second Quarter Reports to Shareholders filed on www.sedar.com. Commentary in the MD&A as at and for the three and nine months ended September 30, 2016 is as of November 3, 2016. BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES The Interim Financial Statements of IGM Financial, which are the basis of the information presented in the Company s MD&A, have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (IFRS) and are presented in Canadian dollars (Note 2 of the Interim Financial Statements). 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 IGM Financial s current expectations. Forward-looking statements are provided to assist the reader in understanding the Company s financial position and results of operations 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. Readers are 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 Company, 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. This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forwardlooking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect. 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 material factors, many of which are beyond the Company s and its subsidiaries control, affect the operations, performance and results of the Company, 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, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company s ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company s and its subsidiaries success in anticipating and managing the foregoing factors. The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company s forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements. Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are 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 Company 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 Management s Discussion and Analysis and its most recent Annual Information Form, filed with the securities regulatory authorities in Canada, available at www.sedar.com. PART D IGM FINANCIAL INC. NON-IFRS FINANCIAL MEASURES AND ADDITIONAL IFRS MEASURES Net earnings available to common shareholders, which is an additional measure in accordance with IFRS, may be subdivided into two components consisting of: Operating earnings available to common shareholders; and Other items, 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. Operating earnings available to common shareholders, operating diluted earnings per share (EPS) and operating return on average common equity (ROE) are non-ifrs financial measures which are used to provide management and investors with additional measures to assess earnings performance. These non-ifrs financial measures do not have standard meanings prescribed by IFRS and may not be directly comparable to similar measures used by other companies. Earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) are also non-ifrs financial measures. EBIT, EBITDA and Adjusted EBITDA are alternative measures of performance utilized by management, investors and investment analysts to evaluate and analyze the Company s results. EBITDA is a common measure used in the asset management industry to assess profitability before the impact of different financing methods, income taxes, depreciation of capital assets and amortization of intangible assets. Other items of a non-recurring nature, or that could make the period-over-period comparison of results from operations less meaningful, are further excluded to arrive at Adjusted EBITDA. These non-ifrs financial measures do not have standard meanings prescribed by IFRS and may not be directly comparable to similar measures used by other companies. Earnings before income taxes and net earnings available to common shareholders are additional IFRS measures which are used to provide management and investors with additional measures to assess earnings performance. These measures are considered additional IFRS measures as they are in addition to the minimum line items required by IFRS and are relevant to an understanding of the entity s financial performance. Refer to the appropriate reconciliations of non-ifrs financial measures to reported results in accordance with IFRS in Tables 1 to 4. IGM FINANCIAL INC. THIRD QUARTER REPORT 2016 / MANAGEMENT S DISCUSSION AND ANALYSIS 5 D 2 POWER CORPORATION OF CANADA THIRD QUARTER REPORT 2016