Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2000 Earnings Presentation
19 slides from Sun Life Financial's earnings presentation, 2000
Slide 1: Presentation to Analysts and Investors
Presentation to Analysts and Investors First Quarter 2000
Slide 2: First Quarter 2000 - Highlights
First Quarter 2000 - Highlights X Net income was $197 million - up 55% from Q1/99 due to special charges in 1999. X Adjusted pro forma net income of $181 million, or $0.45 per share, - Up 18% from Q4/99 - Flat to Q1/99 due to timing and other issues - Up 10% after adjustment for these additional ite
Slide 3: Adjusted Pro Forma Net Income
Adjusted Pro Forma Net Income* ($ Millions) 220 170 Adjusted 120 Pro Forma Net Income 182 166 181 70 147 154 Reported Net Income 20 -30 -80 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Reported Net Income 127 -77 170 -56 197 Adjustments ** 55 243 -23 210 -16 Adjusted Pro Forma Net Income 182 166 147 154 181 * Earn
Slide 4: Adjusted Pro Forma Net Income Comparison
Adjusted Pro Forma Net Income Comparison ($ Millions) Q1/99 Q1/00 Growth (%) Adjusted Pro Forma Net Income 182 181 - Special Items • Change in tax rate (Canada) 6 • Venture capital gains net of asset 2 (23) provisions (US) • Gain on sale of MCIC (US) (5) • Tax adjustments (UK) (15) • Currency and Ot
Slide 5: Financial Performance on an Adjusted Pro Forma Basis
Financial Performance on an Adjusted Pro Forma Basis EPS ROE 12.5% 12.6% 11.7% 0.45 0.45 10.7% 10.1% 0.41 0.39 0.38 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 1999 2000 1999 2000 5
Slide 6: Strong Growth in Assets under Management (AUM)
Strong Growth in Assets under Management (AUM) Q1/00 Q1/00 vs vs ($ Billions) Q1/99 Q4/99 Mutual Funds 34% 9% 321 Total AUM 26% 7% 301 266 265 255 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Mutual and Other 162 172 170 200 220 Funds Segregated Funds 39 40 40 46 48 General Funds 54 54 55 55 53 6
Slide 7: New Sales - Mutual Funds
New Sales - Mutual Funds ($ Billions) 12.4 11.9 10.0 8.4 7.8 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Net New Sales 5.8 3.8 2.5 1.2 3.7 Redemptions 6.1 6.2 5.9 6.6 8.7 7
Slide 8: MFS - Continued Strong Net New Sales
MFS - Continued Strong Net New Sales NET NEW FLOWS NET NEW FLOWS (Non-Proprietary Channel) (Overall Industry) Year to Date Year to Date March 31, 2000 $US Billions March 31, 2000 $US Billions Putnam 6.5 Janus 28.8 AIM Management 3.8 Putnam 7.7 Munder Capital 3.8 INVESCO Funds 5.1 MFS 2.9 AIM Managem
Slide 9: Revenue Growth Highlighted by 30% fee growth
Revenue Growth Highlighted by 30% fee growth Q1/00 Q1/00 vs vs ($ Millions) Q1/99 Q4/99 Fee Income 30% 12% 3,871 3,737 Total 5% -3% 3,563 3,651 3,656 Revenue Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Fee Income 602 635 672 697 782 Investment 1,038 971 950 1,154 963 Income Premiums 1,923 2,045 2,034 2,020 1,992
Slide 10: Operating Expenses
Operating Expenses Total (excl (excl.. MFS) MFS 500 250 242 416 18% 220 224 206 206 60% 400 342 14% 200 329 334 328 300 10% 40% 150 200 6% 100 2% 100 20% Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Operating 329 342 334 416 328 Operating 206 206 220 224 242 Expenses Expenses Exp. rat
Slide 11: Financial Strength
Financial Strength Debt to Total Capital MCCSR 274% 21.6% 21.4% 21.4% 20.7% 270% 266% 262% Q1/99 Q4/99 Q1/00 Q1/00 Q1/99 Q4/99 Q1/00 Q1/00 Pro Forma Pro Forma * Pro forma data reflects effects of the issuance of 21.5 million shares as a result of exercise of over-allotment options by underwriters in
Slide 12: Financial Results by Country
Financial Results by Country 12
Slide 13: Canadian Operations
Canadian Operations Revenue Pro Forma Net Income* ($ millions) ($ millions) 969 1,108 1,031 925 959 51 45 43 35 27 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 * Represents earnings attributed to shareholders on a pro forma basis. There are no adjustments to net income. 1999 amounts h
Slide 14: U.S. Operations
U.S. Operations Revenue Pro Forma Net Income* ($ millions) ($ millions) 1,483 1,506 1,434 1,459 1,412 70 65 56 38 13 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 * Represents earnings attributed to shareholders on a pro forma basis. There are no adjustments to net income. 1999 amounts
Slide 15: MFS - Continued Record Earnings
MFS - Continued Record Earnings Assets Under Management Net Income* ($ billions) ($ millions) 219 199 157 168 167 62 56 49 44 38 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Mutual Funds 116 124 123 143 156 Managed 41 44 44 56 63 Funds * Represents Sun Life’s share of MFS total earnin
Slide 16: U.K. Operations
U.K. Operations Revenue Adjusted Pro Forma Net Income ($ millions) ($ millions) 55 705 687 671 590 577 32 19 17 -5 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 * Represents pro forma earnings attributed to shareholders, adjusted for special provisions related to UK pension business. 1
Slide 17: Asia Operations
Asia Operations Revenue Pro Forma Net Income* ($ millions) ($ millions) 15 13 117 93 97 95 95 7 5 -2 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 * Represents earnings attributed to shareholders on a pro forma basis. There are no adjustments to net income. 17
Slide 18: Summary
Summary X Broad strength across the entire North American franchise. X Key turnaround milestones achieved in U.K. X Significant progress towards achieving performance targets communicated in IPO road show. 18
Slide 19: Sun Life Financial
Sun Life Financial