Manulife Financial Corporation · TSX:MFC
Manulife Financial — Citibank Global Financial Conference 2014
23 slides from Manulife Financial's conference presentation, Nov 20, 2014
Slide 1: Positioned to capture the Asia retirement market opportunity
Positioned to capture the Asia retirement market To change picture opportunity Citibank Global Financial Conference November 20, 2014 Singapore Steve Roder SEVP & Chief Financial Officer We operate as John Hancock in the United States, and Manulife in other parts of the world.
Slide 2: Agenda
Agenda Manulife at a glance The retirement opportunity in Asia Our plan to capture the opportunity leveraging our unique position in Asia 2
Slide 3: A leading global financial services company well positioned in key economies
A leading global financial services company that is well positioned in key economies Well Balanced Broad Distribution Core Earnings1 Platform Independent Financial Advisors Career Agency 28% Bancassurance Managing General Agency 40% 32% Diverse Product Well Offering Established Brands Life
Slide 4: Our deep understanding of the Asia market has been built over more than a century
Our deep understanding of the Asia market has been built over the span of more than a century 1800s 1900-1929 1930-1979 1980s 1990-1996 1997-2000 2001 - 2010 2011 – onwards 2004 – Entered 2012 – Entered 1992 – Entered Cambodia Taiwan 1999 – Re-entered Thailand 1931 – Opened first Insurance Japan 190
Slide 5: MFC Share Price Performance and Quick Facts
MFC common shares Quick Facts MFC Share Price Performance1 Since December 2011, MFC Quick Facts1 (C$ per share, December 2011 – September 2014) (As at September 30, 2014) shares have appreciated 97.1%2 and delivered total shareholder Closing Price C$21.54 return of over 116.3%2 25 3-mth Avg. Volume3
Slide 6: We are making solid progress in 2014
We are making solid progress in 2014 Core Earnings1 Shareholders’ Net Income Funds Under Management1,2 (C$ millions) (C$ millions) (C$ billions) +13% +56% +9% 2,175 2,861 663 1,932 575 1,833 3Q13 YTD 3Q14 YTD 3Q13 YTD 3Q14 YTD 3Q13 3Q14 Wealth Sales1,2 Mutual Fund Sales1,2 Insurance Sales1,2 (C$ bil
Slide 7: Agenda
Agenda Manulife at a glance The retirement opportunity in Asia Our plan to capture the opportunity leveraging our unique position in Asia 7
Slide 8: Asia's population is getting wealthier and older at a very fast pace
Asia’s population is getting wealthier and older at a very fast pace 1.2 billion people expected to join “Silver” class doubling middle class this decade every ~ 25 years Global middle class1 Global population over 65 years old2 (Population in millions) (Population in millions) Rest of World Rest of
Slide 9: The sandwich generation is supporting elderly parents, but expecting less from children
The sandwich generation is supporting elderly parents, but expecting less from children Expectations of familial financial support (% of respondents) 57% 55% 49% 43% 42% 38% 33% 21% 20% 20% 20% 16% 9% 0% Hong Kong Singapore Taiwan China Malaysia Indonesia Japan Expect to provide financial support to
Slide 10: The retirement opportunity
The retirement opportunity Most people are insufficiently prepared for retirement The Retirement Solution Gap Limited income, savings and investments People start to prepare for Move away from cash retirement too late Education and awareness People are living longer on cost of retirement
Slide 11: Sustaining wealth and health are key to support retirement
Sustaining wealth and health are key to support retirement and maintain quality living Having enough Maintaining 1 to spend at 2 pre-retired 3 Cost of health 4 older age living standard care Beat inflation Solutions: Savings and Pensions and Health and Investment Endowment annuities Medical
Slide 12: Agenda
Agenda Manulife at a glance The retirement opportunity in Asia Our plan to capture the opportunity leveraging our unique position in Asia 12
Slide 13: We have a unique position compared with our asset management peers
We have a unique position compared with our asset management peers Insurance Manulife Mutual Investment Asset Funds Linked Management Pensions Diversified product offering with increasing focus on retirement and wealth solutions 13
Slide 14: We are a leading provider of pension solutions in North America and Asia
We are a leading provider of pension solutions both in North America and in Asia CANADA CAD AUM: $28B Group Premiums & Deposits: $4.0B Retirement No. of retirement plans: 6,600 Solutions Members enrolled: 940K HONG KONG Defined Contribution No. 1 Group Pension 25% market share1 USD AUM: $13B Pension
Slide 15: We have an extensive global asset management footprint
We have an extensive global asset management footprint… More than 340 Investment Professionals; Offices in 17 countries and territories* Europe CANADA 9 Investment 52 Investment Professionals Professionals USA 133 Investment Professionals ASIA 149 Investment Professionals* United States Canada Brazi
Slide 16: Providing a full spectrum of investment capabilities to retail and institutional clients
…Providing a full spectrum of investment capabilities to retail and institutional clients Public Markets Asset Allocation Solutions Strategic & Multi-asset Customized Equity Fixed Income Tactical Funds Solutions On-the-ground capabilities Objective-based portfolio solutions focusing on local, region
Slide 17: We are growing our assets under management at a rapid pace
We are growing our assets under management at a rapid pace… Manulife Asset Management total AUM1 C$ billions 309 280 240 214 216 2010 2011 2012 2013 Q3 2014 1 AUM includes both external clients & General Fund, excl. General Fund AUM of non-MAM affiliates. 17
Slide 18: Strongest relative growth in AUM comes from clients outside North America
Strongest relative growth in AUM comes from clients based outside of North America Manulife Asset Management AUM by client domicile C$ billions Growth 309 (4Q10 – 3Q14) 23% Ex-North America + C$ 28 billion (+66%) 214 18% Canada + C$ 20 billion (+58%) 20% 16% 60% USA + C$ 47 billion (+34%) 64% Decemb
Slide 19: Growth is driven by a strong track record of excellence
Growth is driven by a strong track record of excellence Bisnis Indonesia named Manulife Fund managers throughout Asia named amongst Long-Only Fixed Income Asset Management (Indonesia) the Most Astute Investors in Asian Local Manager of the Year - Small Cap at ‘Best Fund House’ 2014 Currency Bo
Slide 20: Steady increase in number of Morningstar 4 or 5 Star rated funds
Steady increase in number of Morningstar 4 or 5 Star rated funds Morningstar 4 or 5 Star Rated Funds* As of September 30, 2014 85 Asia total = 30 5 Star Rated: 7 19 4 Star Rated: 23 70 66 57 59 15 20 11 11 38 9 66 46 48 51 50 29 5 Star Rated Funds 4 Star Rated Funds 2009 20101 2011 2012 20132 Q3 201
Slide 21: Summary
Summary Manulife is well positioned to capture the Asia retirement opportunity Global financial services player with deep roots in Asia Favorable demographics driving the Asian opportunity Leveraging our unique combination of insurance, retirement and wealth management platform Strong track
Slide 22: Notes to users
Notes 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 w
Slide 23: Thank you
Thank you Investor Relations contacts Steven Moore, MBA, FCSI, CGA, CFA, CFP Robert Veloso, MBA, CFA Eileen Tam, HKICPA, FCCA Senior Vice President and Treasurer Vice President Assistant Vice President steven_moore@manulife.com robert_veloso@manulife.com eileen_tam@manulife.com (416) 926-6495 (416)
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