Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2000 Earnings Presentation
20 slides from Sun Life Financial's earnings presentation, August 2000
Slide 1: Presentation to Analysts and Investors
Presentation to Analysts and Investors Second Quarter 2000
Slide 2: Second Quarter 2000 - Highlights
Second Quarter 2000 - Highlights ✸ Net income was $193 million compared to a $77 million loss in the second quarter of 1999 due to special charges in 1999. ✸ Shareholders’ net income of $197 million, or $0.47 per share, - Up 19% from the second quarter of 1999 - Up 9% from the first quarter of 2000
Slide 3: Shareholders' Net Income
Shareholders’ Net Income ($ Millions) 220 170 Shareholders' 120 Net Income 181 197 Reported Net 166 154 70 147 Income 20 -30 -80 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Reported Net Income -77 170 -56 197 193 Participating Policyholders * -25 -16 -3 -16 4 Adjustments ** 268 -7 213 - - Shareholders' Net Income
Slide 4: Financial Performance
Financial Performance EPS ROE 0.45 0.47 12.6% 12.9% 0.41 11.7% 0.39 0.38 10.1% 10.7% Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 1999 2000 1999 2000 Note: Based on shareholders’ net income. Periods prior to Q2 2000 are on an adjusted basis. 4
Slide 5: Strong Growth in Assets Under Management
Strong Growth in Q2/00 Q2/00 Assets Under Management vs vs Q2/99 Q1/00 ($ Billions) Mutual Funds 28% 2% Total AUM 24% 3% 330 321 301 266 265 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Mutual Funds 132 131 153 167 170 Managed Funds and 40 39 47 53 58 Other Segregated Funds 40 40 46 48 49 General Funds 54 55 55 53
Slide 6: Aggressive Fund Sales Growth
Aggressive Fund Sales Growth - Mutual and Managed Funds up 34% and 26%, respectively Net New Sales Market/Currency ($ Billions) Movements ($ Billions) 9.0 27.3 6.9 6.5 13.5 3.3 2.7 3.1 -1.0 -5.3 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Mutual Funds Gross New Sales 10.0 8.4 7.8 12.
Slide 7: 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 June 30, 2000 $US Billions June 30, 2000 $US Billions Putnam 9.5 Janus 35.4 AIM Management 8.4 Putnam 12.2 MFS 5.7 AIM Management 8.4 Alliance 4.7 Fidelity 7.3 Mund
Slide 8: MFS 7th Largest Manager of Variable Annuity Assets
MFS 7th Largest Manager of Variable Annuity Assets ($ Billions) 56.3 54.3 48.1 38.1 38.7 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 MFS * 14.2 14.8 20.4 24.8 26.6 SL (U.S.)/MFS ** 23.9 23.9 27.7 29.5 29.7 SL (U.S.)/MFS *** Market Share (%) 1.74 1.72 1.80 1.80 NA * Represents variable annuity assets managed by MF
Slide 9: Strong Sales Growth in Multi-Manager and Offshore VA Products
Strong Sales Growth in Multi-Manager and Offshore VA Products (US$ Millions) 6 months 3 months 1,689 1,375 1,043 918 771 1998 1999 2000 Q1/00 Q2/00 Offshore 81 90 319 147 172 Multi-Manager 15 151 357 154 203 Single Manager 947 1,134 1,013 470 543 Note: MFS sales of variable annuity funds to third pa
Slide 10: Revenue up 15%
Revenue up 15% - Highlighted by 28% Fee Growth Q2/00 Q2/00 ($ Millions) vs vs Q2/99 Q1/00 4,197 Fee Income 28% 4% 3,871 3,737 3,651 3,656 Total 15% 12% Revenue Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Fee Income 635 672 697 782 812 Investment 971 950 1,154 963 1,005 Income Life & Health 1,130 1,099 1,179 1,131
Slide 11: Operating Expenses (Non-MFS) Flat Year over Year
Operating Expenses (Non-MFS) Flat Year over Year Total (Non-MFS) MFS 267 500 20% 270 242 416 220 224 60% 400 342 342 206 334 328 300 15% 185 40% 200 100 10% 100 20% Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Operating 342 334 416 328 342 Operating 206 220 224 242 267 Expenses Expens
Slide 12: Financial Strength
Financial Strength Debt to Total Capital MCCSR 21.8% 21.4% 291% 20.4% 269% 262% Q2/99 Q4/99 Q2/00 Q2/99 Q4/99 Q2/00 12
Slide 13: Financial Results by Country
Financial Results by Country 13
Slide 14: Canadian Operations
Canadian Operations Revenue Net Income* ($ millions) ($ millions) 1,108 1,031 1,008 959 969 51 45 43 42 35 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 * Represents earnings attributed to shareholders. Periods prior to Q2 2000 are on a pro forma basis. 1999 amounts have been restated
Slide 15: U.S. Operations
U.S. Operations Revenue Net Income* ($ millions) ($ millions) 1,847 1,506 70 1,483 1,459 1,434 65 56 58 13 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 * Represents earnings attributed to shareholders. Periods prior to Q2 2000 are on a pro forma basis. 1999 amounts have been restated
Slide 16: MFS - Continued Strong Earnings
MFS - Continued Strong Earnings Assets Under Management Net Income* ($ billions) ($ millions) 219 226 199 62 62 168 167 56 49 44 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Mutual Funds 124 123 143 156 160 Managed 44 44 56 63 66 Funds * Represents Sun Life’s share of MFS total earnin
Slide 17: U.K. Operations
U.K. Operations - Turnaround Progressing Revenue Adjusted Net Income * ($ millions) ($ millions) 33 32 671 705 642 590 577 19 17 -5 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 * Represents earnings attributed to shareholders, adjusted for special provisions related to UK pension busi
Slide 18: Asia Operations
Asia Operations Revenue Net Income* ($ millions) ($ millions) 13 116 97 102 95 95 7 5 5 -2 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 * Represents earnings attributed to shareholders. Periods prior to Q2 2000 are on a pro forma basis. 18
Slide 19: Summary
Summary ✸ Solid shareholders’ earnings and ROE growth. ✸ Continued strength across the entire North American franchise. ✸ UK turnaround continued to progress. ✸ Confident in meeting or exceeding 2000 performance targets. 19
Slide 20: Sun Life Financial
Sun Life Financial