Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Merger or Acquisition (October 2021)
14 slides from Sun Life Financial's merger presentation, Oct 4, 2021
Slide 1: Sun Life to acquire DentaQuest
Sun Life to acquire DentaQuest Building a Leading Position in U.S. Group Benefits October 2021 S U N L I F E • D E N T A Q U E S T
Slide 2: Forward-looking statements
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventur es and associates are referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Forward-looking statements Certain statements in this presentation and certain oral stat
Slide 3: Our Purpose and Four Pillar Strategy
OUR PURPOSE Helping our Clients achieve lifetime ✓ In line with strategy to grow U.S. Group financial security and live healthier lives Benefits OUR FOUR PILLAR STRATEGY ✓ Establishes a leading position in attractive U.S. Dental market US A Leader in U.S. Group Benefits ✓ Immediately accretive to ea
Slide 4: Transaction Summary
Transaction Summary (1) SUN LIFE TO • DentaQuest is the 2nd largest national provider of Dental benefits, with 33 million total members; ACQUIRE focused on the growing U.S. Government Programs space DENTAQUEST • Purchase price of US$2,475 million in cash(2) • Increases the scale of our U.S. business
Slide 5: Building a Leading Capital-Light, Health-focused U.S. Business
Building a Leading Capital-Light, Health-focused U.S. Business U.S. Annuity Business 2011-2013 2016 2018 2021 2021-2022 Sale of U.S. annuity Acquisition of Acquisition of Acquisition of Acquisition of segment & closure Assurant Employee PinnacleCare DentaQuest adds a Maxwell Health of individual lif
Slide 6: Government Programs and Dental Are Attractive
Government Programs and Dental Are Attractive Government Programs Highlights U.S. Dental - a Large and Growing Opportunity • Government Programs cover nearly 160 million • Second most popular benefit after health insurance Americans for health insurance and increasingly for other benefits(1) • Over
Slide 7: DentaQuest is a Leading Dental Benefits Provider
DentaQuest is a Leading Dental Benefits Provider • DentaQuest is the largest provider of Medicaid dental A Leading Dental Benefits Provider in the U.S. benefits, with growing Medicare, Affordable Care Act and (by Members)(1) commercial businesses; expanding access to oral care • The CareQuest Instit
Slide 8: DentaQuest is a Growth Story
DentaQuest is a Growth Story (1) • DentaQuest has been outgrowing peers in Strong Track Record of Growth recent years, and we expect robust growth to continue • Strong track record of adding and Revenue CAGR of 14% retaining clients, and delivering quality care to members • DentaQuest brings strong
Slide 9: Creation of a Leading Diversified U.S. Dental Business
Creation of a Leading Diversified U.S. Dental Business (1) A leading nationwide A leader in Government Programs Commercial provider network: ✓A leading Dental ∼130,000 dentists benefits provider in the U.S.(2) Strong Commercial capabilities National Commercial distribution team ✓A leader in Governme
Slide 10: Sun Life U.S. – A Leader in Group Benefits
Sun Life U.S. – A Leader in Group Benefits (1) DENTAQUEST SIGNIFICANTLY LEADING MARKET POSITIONS ATTRACTIVE MIX GROWS U.S. GROUP BENEFITS More than Doubles 70%+ Employee Benefits Stop-Loss(3) Revenues from Health(6) Business(2) Dental(4) Capital-Light 33 million Employee Benefits(5) New Members Dive
Slide 11: Key Financial Metrics
Key Financial Metrics (1) Purchase Price (2) US$2,475 million Price-to-Earnings(3) 13.7x Accretion: 2022 estimated Underlying EPS / ROE impact (full year)(4) C$0.17 / 42 bps 2024 estimated Underlying EPS / ROE impact(4) C$0.24 / 50 bps Impact of intangible amortization on estimated underlying EPS (2
Slide 12: Key Takeaways
Key Takeaways + ✓ In line with strategy to grow U.S. Group benefits ✓ Establishes a leading position in attractive U.S. Dental market ✓ Immediately accretive to earnings and ROE (1) ✓ Capital-light & highly cash generative ✓ Delivers on our Purpose by improving access to oral health care ✓ Track-rec
Slide 13: Appendix: Forward-Looking Information
Appendix: Forward-Looking Information Certain statements in this presentation are forward-looking, including but not limited to, statements relating to: (i) our growt h strategies and strategic objectives, (ii) the ability to complete the acquisition of DentaQuest, including obtaining necessary cons
Slide 14: Investor Relations
Investor Relations Yaniv Bitton Vice-President, Head of Investor Relations and Capital Markets 416-979-6496 yaniv.bitton@sunlife.com S U N L I F E • D E N T A Q U E S T 14
Sun Life Financial — Merger or Acquisition (October 2021) on 6ix