Manulife Financial Corporation · TSX:MFC
Manulife Financial — Shareholder Meeting (2005)
25 slides from Manulife Financial's shareholder meeting presentation, 2005
Slide 1: An Exceptional Year
An Exceptional Year Dominic D’Alessandro President and Chief Executive Officer
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements This presentation may contain forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties and actual results may differ mater
Slide 3: A New Global Insurance Leader
A New Global Insurance Leader Products Global market leader Distribution Cost synergies Revenue synergies Strong capital position Geography 3
Slide 4: A Market-leading Global Insurer
Summary A Market-leading Global Insurer N. American Life Insurers Global Life Insurers 46.7 172.2 Market capitalization 36.8 80.1 34.7 C$ in billions 61.1 23.7 23.4 50.0 46.7 36.8 34.7 14.0 33.1 9.5 27.3 25.4 8.1 MET MFC PRU LNC AIG PFG SLF JP GWO AEGON MET AXA MFC PRU AVIVA PRU UK AIG ING Generali
Slide 5: 2004 Full Year Exceptional Results
2004 Full Year Exceptional Results (C$MM, except per share data) 2003 2004 Growth Shareholders’ Earnings $1,546 $2,564 66% Earnings per Share $3.33 $3.65 10% EPS Excl. Currency and $3.33 $3.95 19% Integration Costs Premiums and Deposits $31,036 $49,890 61% Funds Under Management $154,527 $347,677 12
Slide 6: 2004 Full Year Leading Market Positions
2004 Full Year Leading Market Positions Canada United States #1 in Individual Life #1 in Small Case 401(k) #1 in Group Life and Health #2 in Universal Life #1 in Segregated Funds #2 in Long Term Care #1 in Individual Fixed Annuities #4 in Variable Life #4 in Group Pensions #4 in Variable Annuities A
Slide 7: Strong Top Line Growth: Total Insurance Sales
2004 Full Year Strong Top Line Growth Total Insurance Sales C$ millions 2,000 1,500 1,000 500 0 2001 2002 2003 2004 7
Slide 8: Strong Top Line Growth: Wealth Management Sales
2004 Full Year Strong Top Line Growth C$ millions Total Wealth Management Sales 30,000 25,000 20,000 15,000 10,000 5,000 0 2001 2002 2003 2004 8
Slide 9: Integration of John Hancock Expense Synergies
Integration of John Hancock Expense Synergies Original Revised (US$ Millions) Target Target Realizing Expense Synergies United States $110 $150 • Achieved 50% run-rate by Canada 80 90 2004 year-end Asia 10 15 • Expect 100% run-rate by Investments 20 30 2005 year-end HO and Other 35 40 • Further bene
Slide 10: Growth in Funds Under Management
Growth in Funds Under Management C$ billions $400 $348 $300 25% U p1 $200 $155 $100 $0 2003 2004 Ge ne ral Fund Se gre gate d Funds Mutual Funds Othe r Funds 10
Slide 11: High Quality Asset Portfolio
High Quality Asset Portfolio As at March 31/05 C$ Billions % Cash & Short Term Investments 6.9 4 Policy Loans 6.9 4 Bonds: AAA/AA/A 68.7 41 BBB 31.1 18 BB & lower 6.6 4 Mortgages 28.9 17 Equities 8.3 5 Real Estate 4.7 3 Bank Loans and Other Investments 6.4 4 Total $168.5 100% 11
Slide 12: All Businesses Contributed to Success
All Businesses Contributed to Success Shareholders’ Net Income Corporate & Other U.S. Protection $153 million $467 million G&SFP $212 million U.S. Wealth Reinsurance Management $232 million $397 million Japan $165 million Canada $614 million Asia $324 million 12
Slide 13: All Businesses Contributed to Success: U.S. Protection
All Businesses Contributed to Success U.S. Protection $467 million • Addition of John Hancock’s businesses and brand • Excellent mortality experience • Tight expense management 13
Slide 14: All Businesses Contributed to Success: U.S. Wealth Management
All Businesses Contributed to Success U.S. Wealth Management $397 million • Strong organic business growth • Improved investment performance • Excellent sales and favourable retention 14
Slide 15: All Businesses Contributed to Success: Canada
All Businesses Contributed to Success Canada $614 million • Addition of Maritime Life and continued organic growth • Improved efficiency and market share • Strong investment performance 15
Slide 16: All Businesses Contributed to Success: Asia
All Businesses Contributed to Success Asia $324 million • Increasingly diversified • Solid growth of wealth management businesses • Geographic expansion 16
Slide 17: All Businesses Contributed to Success: Japan
All Businesses Contributed to Success Japan $165 million • Core life operations showed solid improvement • Extraordinary growth of variable annuity sales • Diversified distribution 17
Slide 18: All Businesses Contributed to Success: Reinsurance
All Businesses Contributed to Success Reinsurance $232 million • Favourable mortality • Addition of John Hancock’s IGP business • Solid investment return • Strong risk management 18
Slide 19: All Businesses Contributed to Success: Guaranteed and Structured Financial Products
All Businesses Contributed to Success Guaranteed and Structured $212 million Financial Products • Strong earnings contribution • Challenging market conditions • Focus on retail segment 19
Slide 20: Solid Results in First Quarter 2005
Solid Results in First Quarter 2005 Return on Earnings per Share Shareholders’ Equity $0.99 + 8% 14.1% 20
Slide 21: Creating Shareholder Value: Years of Tremendous Earnings Growth
Creating Shareholder Value 10 Years of Tremendous Earnings Growth Net Income C$ in millions $2,564 2,400 CAGR 2,000 25% + $1,546 1,600 $1,378 $1,159 1,200 $1,075 $874 $743 $710 800 $481 $503 400 $281 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 21
Slide 22: Delivering Shareholder Value: Share Price More Than Tripled Since IPO
Delivering Shareholder Value Share Price More Than tripled since IPO $100 invested in September 1999 would now have a market value of $322 $350.00 $300.00 MFC up 222% (since IPO) $250.00 $200.00 $150.00 TSX up 47% $100.00 $50.00 $0.00 Se 0 Se 1 Se 2 Se 3 Se 4 0 Ma 1 Ma 2 Ma 3 Ma 4 5 0 1 2 3 4 9 y -0
Slide 23: Delivering Shareholder Value: Consistent Growth in Dividend
Delivering Shareholder Value Consistent Growth in Dividend C$ 0.30 MFC Quarterly Dividend Per Share 0.25 0.20 0.15 0.10 0.05 0.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 4Q 9 1Q 9 00 00 4Q 0 00 01 3Q 1 4Q 1 01 2Q 2 3Q 2 02 02 2Q 3 03 03 1Q 3 2Q 4 04 4Q 4 Q 4 5 1999 2000
Slide 24: Sources of Future Growth
Sources of Future Growth Growth through ACQUISITIONS ORGANIC Growth Exceptional PERFORMANCE 24
Slide 25: 2004: An Exceptional Year
: 2004: An Exceptional Year [™! Manulife Financial