Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Merger or Acquisition (May 2002)
11 slides from Sun Life Financial's merger presentation, May 22, 2002
Slide 1: Presentation to Analysts and Investors
Presentation to Analysts and Investors Achieving Scale in Canadian Mutual Funds May 22, 2002
Slide 2: 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 3: Highlights
Highlights • Sun Life Financial will exchange its 100% interests in Spectrum and Diversico for a 30% economic interest in C.I. Fund Management Inc. (“C.I.”). • EPS impact is neutral in 2003 and expected to be accretive by 1 - 2¢ in 2004 (No revenue synergies assumed). • C.I. will receive preferred a
Slide 4: Transaction Rationale
Transaction Rationale • Achieves requisite scale in the consolidating mutual fund industry: enhances margins ensures access to shelf space • Provides Sun Life Financial with significant stake in well-positioned top tier player (long-term funds): #4 among Canadian mutual fund companies #3 non
Slide 5: Achieve Top 4 Ranking Among Canadian Mutual Funds
Achieve Top 4 Ranking Among Canadian Mutual Funds Long Term Mutual Fund Assets $(000’s) 1 Investors Group/Mackenzie 75,400,380 2 AIM Funds Management Inc. 36,172,910 3 Fidelity Investments Canada Ltd 32,819,640 C.I./Spectrum/Clarica 32,551,280 4 AGF Management Ltd 29,102,340 5 RBC Funds Inc. 24,708,
Slide 6: Term Sheet
Term Sheet • Transaction Exchange 100% of Spectrum and Diversico (including segregated funds) for 30% economic interest in C.I. (existing position in C.I. is 1.6%) • Distribution Agreement C.I. to have preferred access to Clarica’s 4000+ advisors/managers. May be terminated on change of control of C
Slide 7: Term Sheet (cont…)
Term Sheet (cont…) • Standstill 3 years at 34% (non-diluted) • Shareholders Agreement Management controlling 18.7% (15% pro forma) may not tender into take-over bid for 3 years and has granted ROFR to Sun Life Financial for 5 years • Expected Closing Date July 2002 • Preconditions Closing of Clarica
Slide 8: Financial Overview
Financial Overview • EV/EBITDA Multiple 9.0X • Gain on Sale $200 - 250 million • EPS accretion 2003 Neutral 2004 1 - 2¢ 8
Slide 9: C.I. is a Strong Partner With an Outstanding Track Record
C.I. is a Strong Partner With an Outstanding Track Record • C.I. management team recognized among the most well- regarded in Canadian mutual funds. • Experienced integrator of acquired franchises (e.g BPI) and lowest cost operator. • C.I. investment advisory strategy aligned with Sun Life objectives
Slide 10: Summary
Summary • Strategically positions Sun Life Financial in core wealth management products • Achieves scale-driven, sustainable, operating economics • Reduces integration risk • Accretive to EPS by 2004 • Builds shareholder value 10
Slide 11: Sun Se.
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Sun Life Financial — Merger or Acquisition (May 2002) on 6ix