Manulife Financial Corporation · TSX:MFC

Manulife Financial — Barclays Global Financial Services Conference 2015

27 slides from Manulife Financial's conference presentation, Sep 16, 2015

1. Slide 1: Driving strong growth in a mature economy: Manulife Japan's success story

   Driving strong growth in a mature economy: Manulife Japan’s success story Barclays Global Financial Services Conference New York City September 16, 2015 Gavin Robinson President & CEO, Manulife Japan

2. Slide 2: Agenda

   Agenda Manulife at a glance The (under-appreciated) Japan story Manulife’s success in driving strong growth in Japan 1

3. Slide 3: Manulife is a leading global financial services company

   Manulife is a leading global financial services company US$37 billion US$708 billion market capitalization1 assets under management and administration1,3 30,000+ 8th largest employees1 life insurer in the world4 US$3.2 billion 3rd largest net income2 life insurer in North America3 1 As at June 30, 2

4. Slide 4: We have a major presence in...

   We have a major presence in… …Four of the world’s 10 largest … And some of the fastest growing economies… markets on the planet Gross Domestic Product Gross Domestic Product Growth (US$ trillion, 2015P, current prices) (10-year CAGR, 2004-2014, US$ Constant Prices) U.S.A 18.1 China 9.9% China 11.2 C

5. Slide 5: Well balanced business, with Asia contributing significantly to earnings and sales

   Well balanced business, with Asia contributing significantly to earnings and sales Core Earnings Insurance Sales Wealth & Asset Management Net Flows Data for the twelve months ending June 30, 2015; Excludes Corporate and Other Division; Core earnings, Sales and Net Flows are Non-GAAP measures. See “

6. Slide 6: Our Asian platform is well positioned...

   Our Asian platform is well positioned… Japan China Strong presence in Asia Taiwan  118 years in Asia Hong Macau Kong  7 million customers Thailand  Leading professional agency Vietnam Philippines Cambodia  100+ bank partners  Over US$80 billion assets Malaysia under management Singapore Indones

7. Slide 7: ... and well diversified

   … and well diversified Manulife Asia Total Sales (US$2,214 million) By channel By geography By product Others Alternative Professional Japan Indonesia Term, A&H And Mutual funds, & Others Agency Critical Illness pensions 5% 12% Japan 29% 33% 37% 44% 35% 30% Other Asia 35% Hong Kong 33% 22% 19% 22% 1

8. Slide 8: Agenda

   Agenda Manulife at a glance The (under-appreciated) Japan story Manulife’s success in driving strong growth in Japan 7

9. Slide 9: Not only is the Japanese market big...

   Not only is the Japanese market big… Japan is the world’s:  3rd largest economy1 Population 127 million GDP1 US$4.2 trillion  2nd largest insurance market2 Real GDP Growth1 1.0% Total insurance premiums2 US$532 billion  2nd largest pool of personal Insurance penetration2,4 11.1% financial assets

10. Slide 10: ... it is also experiencing key trends which create opportunity

    … it is also experiencing key trends which create opportunity Aging population Declining social Significant transfer welfare support of retirement funds Large cash holdings Changing industry Global insurers distribution gaining share 9

11. Slide 11: Japan's population is aging rapidly

    Japan’s population is aging rapidly By 2050, Japan’s “silver” class will represent ~40% of the population Population aged 65+1 Increased need for: (% of total population) 40 Japan → Health & medical insurance 30 → Investment solutions (e.g. mutual funds) 20 Asia (ex. Japan) → Income solutions World

12. Slide 12: Declining social welfare support is accompanied by stimulus measures to promote investment

    Declining social welfare support is accompanied by stimulus measures to promote investment US$25 billion invested in 8 million NISA accounts in 1st year1 (Millions) (US$ billions) 10 9.7 250 8.8 210 8.2 8 7.3 200 6 150 4.9 4 100 2 37 50 15 25 0 0 Jan. Jun. Dec. March 2020F2 2014 2014 2014 2015 # of

13. Slide 13: US$80 billion in retirement funds transferred from companies to individuals

    US$80 billion in retirement funds transferred from companies to the 1+ million individuals who retire every year Pension providers US$80 billion each year1 in lump sum payments New retirees2 US$10 billion US$14 billion US$56 billion (13%) (17%) (70%) Debt repayment Consumption Savings & Investments

14. Slide 14: Households have started to invest some of their cash holdings, notably in mutual funds

    Households have started to invest some of their cash holdings, notably in mutual funds… Household financial assets1 Mutual fund AUM2 (% of total) (¥ trillions) (%) (%) +63% 60 10 Currency & deposits (left axis) 8 55 6 50 93 81 4 Mutual funds 64 (right axis) 57 5 2 0 0 2011 2012 2013 2014 2011 2012 2

15. Slide 15: ... partly driven by the emergence of discretionary "Wrap" accounts

    … partly driven by the emergence of discretionary “Wrap” accounts “Wrap” accounts are gaining … and AUM is growing at an in popularity… exponential rate (Thousands) (¥ trillions) 3.9 400 4 300 2.6 3 200 1.6 2 Discretionary 1.2 307 0.9 249 100 0.7 1 0.6 129 60 88 43 46 0 0 June Dec. June Dec. June De

16. Slide 16: Nevertheless, vast amounts of cash remain on the sidelines

    Nevertheless, vast amounts of cash remain on the sidelines >50% of Japanese households’ financial assets are held in cash Household financial assets We believe that … (% of total)  Household deposit liquidity in Japan is excessive 47% 65%  Demographics are compelling deposit disintermediation 87%

17. Slide 17: Industry distribution shifting away from traditional "sales lady" model

    Industry distribution shifting away from traditional “sales lady” model used by local incumbents While the industry itself isn’t … it is marked by a shift in growing at a rapid pace… distribution mix Insurance and annuities sales1 Market share by distribution channel1 (¥ trillions) (% of total sales

18. Slide 18: Global players gaining market share from local incumbents

    Global players gaining market share from local incumbents… and still have lots of room to grow New business market share by Global competitors’ new business competitor type1 market share1 (% of insurance and annuities sales) (Based on 2014 insurance and annuities sales) Share Rank Global competitors

19. Slide 19: Agenda

    Agenda Manulife at a glance The (under-appreciated) Japan story Manulife’s success in driving strong growth in Japan 18

20. Slide 20: Broad and fully integrated suite of solutions puts Manulife Japan in a unique position

    Broad and fully integrated suite of solutions puts Manulife Japan in a unique position vs. other global competitors  Manulife is uniquely differentiated: Insurance solutions − Broad suite of solutions − High degree of collaboration & integration between businesses Multi- − Diverse and deepening Mut

21. Slide 21: Growing and diversifying our distribution footprint by partnering with major domestic players

    Multi-channel distribution Growing and diversifying our distribution footprint by partnering with major domestic players Manulife’s sales by distribution channel Mega banks Insurance4 Wealth (Total sales in ¥ billions2) BTMU 79 SMBC Financial institutions 1: SMTB 24%  125 partners  190K registered

22. Slide 22: Growing individual insurance sales at 23% CAGR – 10 times faster than other global competitors

    Insurance solutions Growing individual insurance sales at 23% CAGR – 10 times faster than other global competitors Growth Japan individual insurance sales1 (2005-2014) (Index based on ANP in Yen; 2005 = 100) 700 645 Manulife 23% CAGR 600 500 400 300 Global 200 2% CAGR 123 competitors (ex. Manulife)

23. Slide 23: Built out a comprehensive insurance offering

    Insurance solutions Built out a comprehensive insurance offering Protection Accident and health insurance Our solutions:  Term life insurance  Critical illness insurance  Whole life insurance  Hospitalization insurance  Estate planning Our recent additions:  New whole life (2014)  Enhanced Un

24. Slide 24: Actively growing our lower-risk wealth businesses

    Mutual funds & other wealth solutions Actively growing our lower-risk wealth businesses Manulife Wealth sales1 by product (%) Mutual fund sales1 ($US millions) 11% 717  Focused on meeting 46% expanding customer needs 1 − e.g. asset building, 2010 2014 succession planning 89% Fixed annuities & singl

25. Slide 25: Manulife's ability to provide integrated financial planning creates a unique value proposition

    Financial planning Manulife’s ability to provide integrated financial planning creates a unique value proposition for clients Industry: Needs − Most industry providers offer specific Wants Products financial solutions and limited product integration − Creates a gap between client “Life design” Tools

26. Slide 26: Manulife is a growing, nimble player in a massive and changing market

    Manulife is a growing, nimble player in a massive and changing market  Integrated suite of solutions that can meet a broad set of needs  Diversified and deepening distribution model  Growing individual insurance 10 times faster than global competitors  Actively capturing money in motion and grow

27. Slide 27: Thank you

    Thank you Investor Relations contacts Steven Moore, MBA, FCSI, CGA, CFA, CFP Robert Veloso, MBA, CFA David Rancourt, M.Sc., CFA Senior Vice President and Treasurer Vice President Assistant Vice President steven_moore@manulife.com robert_veloso@manulife.com david_rancourt@manulife.com (416) 926-6495

Manulife Financial — Barclays Global Financial Services Conference 2015 on 6ix