Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Shareholder Meeting (June 2003)
41 slides from Sun Life Financial's shareholder meeting presentation, Jun 4, 2003
Slide 1: 3rd Annual Meeting of Shareholders of Sun Life Financial Services of Canada Inc.
3rd Annual Meeting of Shareholders of Sun Life Financial Services of Canada Inc. 132nd Annual Meeting of Sole Shareholder and Voting Policyholders of Sun Life Assurance Company of Canada
Slide 2: Donald A. Stewart, Chief Executive Officer
Donald A. Stewart Chief Executive Officer 1
Slide 3: Sun Life Financial
Life Financial
Slide 4: The Vision Continues
The Vision Continues Donald A. Stewart Chief Executive Officer 3
Slide 5: SLF Canada: Creating a new organization
SLF Canada Creating a new organization 4
Slide 6: SLF Canada: Creating a new organization
SLF Canada Creating a new organization: • Synergy and Cost Savings • Keep people informed • Information Systems conversions near completion • 34% ownership in CI Funds • McLean Budden - United States success 5
Slide 7: SLF United States
SLF United States • Consolidated Keyport & IFMG – Challenging market conditions 6
Slide 8: S&P 500 Performance
S&P 500 Performance Jan 2000 – Mar 31/03 1600 1500 1400 1300 1200 1100 1000 900 800 700 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 2000 2001 2002 1Q/03 7
Slide 9: 5 Year Treasuries
5 Year Treasuries Jan 2000 – Mar 31/03 7.00 6.00 5.00 4.00 3.00 2.00 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 2000 2001 2002 1Q/03 8
Slide 10: SLF United States
SLF United States • Consolidated Keyport & IFMG – Challenging market conditions – Steps being taken 9
Slide 11: United States
United States • Consolidated Keyport & IFMG • MFS growing International and Institutional business • Growing Protection business 10
Slide 12: SLF Asia
SLF Asia China Tianjin 2,000 sales force India 17 cities 5,000 sales force Hong Kong Sales up 91% Philippines #2 in Individual Life 11
Slide 13: SLF United Kingdom
SLF United Kingdom Tightly focused operation: • Business restructured • ROE in excess of 15% • Repatriation of capital 12
Slide 14: Sun Life Financial stands for:
Sun Life Financial Sun Life Financial stands for: • Integrity V A • Financial strength and security L • International leadership U • Operational excellence E 13
Slide 15: A Family of Brands
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Slide 16: Distinctive Capabilities
Distinctive Capabilities • People & performance management • Value-based risk management • Internationalization 15
Slide 17: Greatest Strength
Greatest Strength • Dedicated people • Character & Imagination & Resilience • Earning customer loyalty 16
Slide 18: Shaping the Environment
Shaping the Environment • International competitiveness: critical public policy issue • Public interest must be served • "Cross pillar" mergers create few synergies 17
Slide 19: Working Hard to Build Value
Working Hard to Build Value 18
Slide 20: Bill Stinson, Lead Director
Bill Stinson Lead Director 19
Slide 21: Board Effectiveness
Board Effectiveness • Lead Director responsible for effective functioning of Board • Sun Life Financial Board – Independent Directors – Meet regularly without Management – Focus on strategy and risk management – Annual evaluation – Agendas raise important matters 20
Slide 22: Integrity
Integrity • Trust, governance and value • Engaged and experienced • Management commitment and integrity • "Tone from the top" 21
Slide 23: Separation of Roles of Chairman and CEO
Separation of Roles of Chairman and CEO • Current governance structure has worked well • Corporate governance expectations and norms are evolving • Important to adapt to change 22
Slide 24: Strong Fundamentals Yield Solid Results In Challenging Markets
Strong Fundamentals Yield Solid Results In Challenging Markets Paul Derksen Executive Vice-President & Chief Financial Officer 23
Slide 25: Accomplishments
Accomplishments Clarica combination – Integration on track – Amalgamation completed December 2002 – Solidified a leading position in Canada CI Funds partnership – 34% ownership – #4 in Canadian market – $33.1B in fee-earning assets 24
Slide 26: Accomplishments
Accomplishments Keyport/IFMG – Successful integration – Met accretion targets UK restructured – Sold Group businesses – Outsourced administration – C$ 550mm capital repatriated 25
Slide 27: Disciplined Risk Management Practices
Disciplined Risk Management Practices • Board Risk Review Committee • Executive Risk Management Committee • Chief Risk Officer • Earnings at Risk analysis • Stable and predictable earnings 26
Slide 28: Consistent Performance Despite Equity Market Challenges
Consistent Performance Despite Equity Market Challenges S&P 500 Index Daily Average Operating EPS 1427 2002/2001 Earnings 1194 Clarica 994 Restructuring down 17% 2.32 up 13% 2.06 1.90 C$ 1,260 mm $792 $872 up 44% million million 27 2000 2001 2002
Slide 29: Balanced Business Model
Balanced Business Model Operating Earnings (C$mm) 400 350 300 Acquisitions 250 200 Protection & 150 Other 100 50 Equity Linked 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2000 2001 2002 28
Slide 30: Consistent Performance Despite Equity Market Challenges
Consistent Performance Despite Equity Market Challenges S&P 500 Index Daily Average 2003/2002 EPS Earnings down 24% 0.59 0.56 down 5% 0.48 $343 up 34% $256 million $202 million million 1Q 2001 1Q 2002 1Q 2003 29
Slide 31: Strong Capital Base
Strong Capital Base MCCSR Ratio 230% 237% 206% 210% 193% Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 30
Slide 32: Clarity in Reporting
Clarity in Reporting • Stock options expensed in 2002 • Special items clearly identified • Sources of Earnings • Embedded Value 31
Slide 33: Outlook
Outlook • Clear strategic focus • Strong commitment to risk management Shareholder • Conservative investment portfolio Value • Superior capital strength • Clarity in financial reporting 32
Slide 34: Sun Life Financial
Life Financial
Slide 35: Sun Life Financial Services of Canada Inc.
Holding Sun Life Financial Company Services of Canada Inc. Insurance Sun Life Company Assurance Company with of Canada Policyholders 34
Slide 36: Sun Life Financial
Life Financial
Slide 37: Blue Ballot
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Slide 38: Yellow Ballot
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Slide 39: Green Ballot
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Slide 40: Forward Looking Information
Forward Looking Information This presentation contains forward looking statements with respect to the Company, including its business operations and strategy and financial performance and condition. Although Management believes that the expectations reflected in such forward looking statements are r
Slide 41: Sun Life Financial
Life Financial