Manulife Financial Corporation · TSX:MFC
Manulife Financial — Shareholder Meeting (May 2014)
69 slides from Manulife Financial's shareholder meeting presentation, May 1, 2014
Slide 1: Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual and Special Meeting
Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world.
Slide 2: Opening Remarks
Opening Remarks Richard B. DeWolfe Chairman of Board of Directors Manulife Financial Corporation The Manufacturers Life Insurance Company 2
Slide 3: Platform Introductions
Platform Introductions Stephen B. Roder Senior Executive Vice President and Chief Financial Officer Donald A. Guloien President and Chief Executive Officer Stephen P. Sigurdson Executive Vice President and General Counsel Antonella Deo Vice President and Corporate Secretary 3
Slide 4: Recognizing Retiring Directors
Recognizing Retiring Directors Robert J. Harding Lorna R. Marsden 4
Slide 5: Recognizing Past Chairs of the Board
Recognizing Past Chairs of the Board William R. Blundell Gail C.A. Cook-Bennett Sydney E. Jackson Arthur R. Sawchuk 5
Slide 6: Recognizing Employees
Recognizing Employees IM Manulife. fre Hancock, MM! Manulife
Slide 7: Manulife Financial Corporation and The Manufacturers Life Insurance Company
Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world.
Slide 8: Calling the Meeting to Order
Annual and Special Meeting Calling the Meeting to Order 8
Slide 9: Caution regarding forward-looking statements
Caution regarding forward-looking statements This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. This presentation contains forward-looking statements which are made pursuant to the “safe harbour”
Slide 10: Note to users
Note to users Performance and Non-GAAP Measures We use a number of non-GAAP financial measures to measure overall performance and to assess each of our businesses. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance wi
Slide 11: Notice of Meeting, Quorum, Voting Instructions
Annual and Special Meeting Notice of Meeting Confirmation of Quorum Voting Instructions Manulife Financial Corporation The Manufacturers Life Insurance Company 11
Slide 12: Election of Directors
Annual and Special Meeting Election of Directors Manulife Financial Corporation The Manufacturers Life Insurance Company 12
Slide 13: Election of Directors
Annual and Special Meeting Election of Directors Manulife Financial Corporation 13
Slide 14: Nominees for Election of Directors of Manulife Financial Corporation
Annual and Special Meeting Nominees for Election of Directors of Manulife Financial Corporation: Joseph P. Caron Luther S. Helms John M. Cassaday Tsun-yan Hsieh Susan F. Dabarno Donald R. Lindsay Richard B. DeWolfe John R.V. Palmer Sheila S. Fraser James Prieur Donald A. Guloie
Slide 15: Election of Directors
Annual and Special Meeting Election of Directors The Manufacturers Life Insurance Company 15
Slide 16: Nominees for Election of Policyholders' Directors
Annual and Special Meeting Nominees for Election of Policyholders’ Directors of The Manufacturers Life Insurance Company: Joseph P. Caron John M. Cassaday Susan F. Dabarno Richard B. DeWolfe Scott M. Hand 16
Slide 17: Nominees for Election of Shareholder's Directors
Annual and Special Meeting Nominees for Election of Shareholder’s Directors of The Manufacturers Life Insurance Company: Sheila S. Fraser John R.V. Palmer Donald A. Guloien James Prieur Luther S. Helms Andrea S. Rosen Tsun-yan Hsieh Lesley D. Webster Donald R. Lindsay 17
Slide 18: Appointment of the Auditors
Annual and Special Meeting Appointment of the Auditors Manulife Financial Corporation The Manufacturers Life Insurance Company 18
Slide 19: Proposed Auditor Appointee: Ernst & Young LLP
Annual and Special Meeting Proposed Auditor Appointee: Ernst & Young LLP, Chartered Accountants 19
Slide 20: Confirmation of Amendments to By-Law No. 1
Annual and Special Meeting Confirmation of Amendments to By-Law No. 1 Establishing the Maximum Aggregate Annual Remuneration Payable to the Board of Directors in United States Dollars Manulife Financial Corporation The Manufacturers Life Insurance Company 20
Slide 21: Advisory Resolution on Executive Compensation
Annual and Special Meeting Approval by Shareholders of the Advisory Resolution Accepting Approach to Executive Compensation Manulife Financial Corporation 21
Slide 22: Tabling of 2013 Consolidated Financial Statements
Annual and Special Meeting Tabling of 2013 Consolidated Financial Statements and Reports of the Auditor and Actuary thereon Manulife Financial Corporation The Manufacturers Life Insurance Company 22
Slide 23: Tabling of 2013 Information for Participating Policyholders
Annual and Special Meeting Tabling of 2013 Information for Participating Policyholders as set out in the Report to Policyholders The Manufacturers Life Insurance Company 23
Slide 24: Financial Overview
Financial Overview Stephen B. Roder Senior Executive Vice President & Chief Financial Officer Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world.
Slide 25: Overview
Overview Demonstrated progress on our financial objectives The path to 2016 core earnings objective Pursuing sustainable growth in Asia, Wealth Management, Canada and the United States 2014 First Quarter Results 25
Slide 26: We are delivering on ambitious, but achievable, financial objectives
We are delivering on ambitious, but achievable, financial objectives Core Core Long-Term Earnings ROE Leverage Ratio (C$ billions) 4.0 13.0% 32.7% 31.0% 9.8% 10.6% 25.0% 2.2 2.6 2012 2013 2016 2012 2013 2016 2012 2013 Long Objective Objective Term Objective $4 billion 13% 25% in 2016 in 2016 Long-Te
Slide 27: 2013 financial performance demonstrates that we are delivering on our objectives
2013 financial performance demonstrates that we are delivering on our objectives Shareholders’ Net Income Wealth Sales1,2 Insurance Sales1,2 (C$ millions) (C$ billions) (C$ millions) +73% +37% -13% 2012 reflects increased sales in 3,130 49.7 advance of 3,279 product and 2,757 35.9 tax changes 1,810
Slide 28: The path to 2016 core earnings objective
The path to 2016 core earnings objective Core Earnings1,2 Wealth earnings drivers: (C$) Achieving operational scale in mutual fund businesses Wealth Management $4.0 billion Higher fee income fuelled by net flows Insurance E&E Savings Deferred Acquisition Costs run off on Variable Annuity busin
Slide 29: Pursuing sustainable growth by executing on our four core growth strategies
Pursuing sustainable growth by executing on our four core growth strategies Developing our Asian opportunity to the fullest Growing our wealth and asset management businesses around the world Building on our balanced Canadian business Continuing to drive sustainable earnings and opportunistic growth
Slide 30: Asia delivering substantial wealth sales growth
Asia delivering substantial wealth sales growth Wealth Sales1 Insurance Sales (US$ billions) (US$ billions) Key Highlights 8.3 1.4 2012 5.7 reflects 1.0 increased sales in Record 2013 wealth sales, up almost 60%2 advance of product Leading position in net cash flows in the Mandatory and tax Prov
Slide 31: Growing our wealth and asset management businesses around the world
Growing our wealth and asset management businesses around the world Funds Under Management1 (C$ billions) Key Highlights +26% 599 Continued strong mutual fund sales 477 500 531 Attained 21st consecutive quarter of record funds under management Manulife Asset Management generated strong results
Slide 32: Canada continues strong progression
Canada continues strong progression Wealth Sales1 Insurance Sales (C$ billions) (C$ billions) Key Highlights 12.1 1.3 10.1 1.1 Excluding Group Benefits, Record 2013 wealth sales, up 21%, drove insurance sales record funds under management declined 1%, year-over- Record mutual fund deposits, an i
Slide 33: John Hancock demonstrates profitable growth
John Hancock demonstrates profitable growth Wealth Sales1 Insurance Sales (US$ billions) (US$ billions) Key Highlights 28.2 0.60 0.56 20.2 2013 wealth sales up 39% driving record wealth funds under management Achieved record mutual fund deposits of more than $23 billion, an increase of 79% versu
Slide 34: First quarter 2014 financial highlights
First quarter 2014 financial highlights Reported net income attributed to shareholders of $818 million Generated core earnings1 of $719 million, up $34 million vs. 4Q13 Reported insurance sales1 of $537 million, down 15%2 vs. 1Q13 Achieved wealth sales of $13.8 billion, up 5% vs. 1Q13 Achi
Slide 35: Summary
Summary In 2013, Manulife: Demonstrated that we are delivering on our objectives through our solid financial performance Made progress toward our 2016 objective of $4 billion in core earnings1,2 Continued to execute on our four growth strategies in Asia, our Wealth & Asset Management business,
Slide 36: President's Address
President’s Address Donald A. Guloien President & Chief Executive Officer Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world. 36
Slide 37: Serving our Customers.
Serving our Customers. SIRE MM Manulife fro taneok,
Slide 38: We help people with their big financial decisions.
Serving our Customers. We help people with their big financial decisions. 38
Slide 39: Serving our Customers: $599 billion, 20 million customers, $19 billion
Serving our Customers. $599 billion invested to support life insurance products, retirement plans, and other financial needs 20 million customers $19 billion in claims, cash surrender values, annuity payments and other benefits 39
Slide 40: Serving our Customers: employees, inquiries, new products
Serving our Customers. 28,000 employees 12 million inquiries new products launched 23 in Asia, 24 in Canada, 21 in U.S. 40
Slide 41: Serving our Shareholders.
Serving our Shareholders. 41
Slide 42: Net Income attributed to shareholders
Serving our Shareholders. Billions Net Income attributed to shareholders $4 $3 $2 $1 $0 -$1 -$2 2010 2011 2012 2013 42
Slide 43: $39 billion market capitalization, 60% shareholder return
Serving our Shareholders. $39 billion market capitalization 60% shareholder return 248% capital ratio 43
Slide 44: 2016 Objectives
2016 Objectives $4 billion 13% Core Core Earnings “ROE” 44
Slide 45: 2016 Objectives
2016 Objectives $4 billion 13% Core Core Earnings ROE 45
Slide 46: 2013 Performance: $2.6 billion Core Earnings
2013 Performance $2.6 billion Core Earnings 46
Slide 47: 2013 Performance: Core Earnings and Core ROE
2013 Performance $2.6 billion 10.6% Core Core Earnings ROE 47
Slide 48: Asia
Asia $8.5 billion wealth sales 57,500 agents Expanded distribution platform 48
Slide 49: Canada
Canada $6.5+ billion mutual fund deposits 5th in net sales 1st in Canada licensed to administer PRPPs 49
Slide 50: U.S.
U.S. $23+ billion mutual fund deposits New 401k platform gained traction Strong sales lower risk insurance products 50
Slide 51: Wealth and Asset Management
Wealth and Asset Management Almost $16 billion net mutual fund flows $243 billion assets under management 70 funds rated 4 or 5 stars by Morningstar 51
Slide 52: 2009 Long Term Objectives
2009 Long Term Objectives Grow our businesses Optimal use of capital Reduce equity exposure Balance between margins and market share Extend our product reach Capitalize on opportunities Maintain strong capital levels 52
Slide 53: We operate as John Hancock in the United States, and Manulife elsewhere
We operate as John Hancock in the United States, and Manulife in other parts of the world. 53
Slide 54: Non-Financial Measures of Success
Non-Financial Measures of Success 2013 2013 Professional Insurance Service Award Manulife-Sinochem John Hancock Retirement Plan Services #1 in five categories 54
Slide 55: We operate as John Hancock in the United States, and Manulife elsewhere
We operate as John Hancock in the United States, and Manulife in other parts of the world. 55
Slide 56: Boston Marathon
Boston Marathon MARATHON | Penk i ¥ MM! Manulife
Slide 57: Looking Forward
Looking Forward Customer Centricity Products and Distribution Technology Culture Talent Brand Efficiency and Effectiveness 57
Slide 58: Efficiency and Effectiveness Program
Efficiency and Effectiveness Program Over 300 projects – 70% in execution Workplace Transformation IT Infrastructure teams consolidated Global Procurement Project 58
Slide 59: We operate as John Hancock in the United States, and Manulife elsewhere
We operate as John Hancock in the United States, and Manulife in other parts of the world. 59
Slide 60: Quote from a Customer
Quote from a Customer “ I left my employer so I was closing my account and I had a bunch of questions and I wanted you to know that my service rep was unbelievable. She helped me complete my paperwork and answered my questions about my statement. It made me feel really well cared for. At some point
Slide 61: We operate as John Hancock in the United States, and Manulife elsewhere
We operate as John Hancock in the United States, and Manulife in other parts of the world. 61
Slide 62: Retiring Directors
Retiring Directors Lorna R. Marsden Robert J. Harding 62
Slide 63: Thank You
Thank You MM! Manulife
Slide 64: Manulife Financial Corporation and The Manufacturers Life Insurance Company
Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world.
Slide 65: Voting Results
Annual and Special Meeting Voting Results Manulife Financial Corporation The Manufacturers Life Insurance Company 65
Slide 66: Conclusion of Meeting
Annual and Special Meeting Conclusion of Meeting Manulife Financial Corporation The Manufacturers Life Insurance Company 66
Slide 67: Question and Answer Period
Annual and Special Meeting Question and Answer Period Manulife Financial Corporation The Manufacturers Life Insurance Company 67
Slide 68: Thank you
Annual and Special Meeting Thank you 68
Slide 69: Manulife Financial Corporation and The Manufacturers Life Insurance Company
Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual and Special Meeting Thursday, May 1, 2014 We operate as John Hancock in the United States, and Manulife in other parts of the world.