Manulife Financial Corporation · TSX:MFC
Manulife Financial — Investor Presentation (March 2012)
30 slides from Manulife Financial's investor presentation, Mar 6, 2012
Slide 1: Manulife Operations in the ASEAN Region
Manulife Operations in the ASEAN Region Well Positioned to Ride the Economic Wave David Wong SVP & Regional Executive, South East Asia March 6, 2012
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the “safe harbour” provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this presenta
Slide 3: Agenda
Agenda Exciting ASEAN Region Growth Strategies and Opportunities 3
Slide 4: Agenda
Agenda Exciting ASEAN Region Manulife in ASEAN Positive demographic trends Well positioned to ride the economic wave Growth Strategies and Opportunities 4
Slide 5: Manulife is strategically positioned in a diverse, growing region
Manulife is strategically positioned in a diverse, growing region ASEAN region facts Manulife in ASEAN 10 countries in the region We’re in 6 countries, including the 4 largest Nearly 600 million people Announced our intention to enter Cambodia Youthful and increasing middle-class Access
Slide 6: ASEAN population demographics support an increasing need for financial products
ASEAN population demographics support an increasing need for financial products ASEAN Demographics Largest Proportion of Total Population (millions) Population Under 30 % below age 30 Large, young population with an emerging urban middle class 54% 1,337 Strong economic growth with GDP growing ~
Slide 7: ASEAN has one of the lowest insurance penetration providing scope for significant growth
ASEAN has one of the lowest insurance penetration providing scope for significant growth Insurance Market Current Future Segmentation Maturing Emerging Giant Giants Indonesia, Malaysia, South Korea, Philippines, China Countries Japan Taiwan, Hong Vietnam, Thailand, India Kong, Singapore Cambodia GDP
Slide 8: Significant ambitions for Manulife to expand in ASEAN by 2015
Significant ambitions for Manulife to expand in ASEAN by 2015 Key Ambitions Be a top 3 player in our key markets Double the number of agents, from 26,000 to greater than 50,000 by 2015 Expand bancassurance relationships across all territories and secure regional bank partnerships Increase we
Slide 9: Agenda
Agenda Exciting ASEAN Region Growth Strategies and Opportunities Increase distribution capacity: proprietary agents and bancassurance Grow the Wealth and Asset Management businesses Pursue other growth opportunities Build the Manulife brand Customer focused product development Address ke
Slide 10: Accelerating sales growth by expanding the bancassurance and agency distribution channels
Accelerating sales growth by expanding the bancassurance and agency distribution channels APE Sales1 by Channel 2005 2010 2015 Objectives2 US$191 million US$289 million ~US$1 billion 8% 10% 8% 2% 32% 50% CAGR 9% CAGR 28% 60% 40% 90% Agency Bancassurance Brokers & Others Proprietary Agency Bancassura
Slide 11: Growing distribution capabilities through an expanded agency network
Growing distribution capabilities through an expanded agency network Number of Agents Rapidly expanding the proprietary agency 27,000 channel in major urban centres in the Up 170% ASEAN region Record number of agents in 2011: Vietnam (~12,000) – 5-yr CAGR of 33% Indonesia (~8,000) – 5-yr CAG
Slide 12: Philippines Story: Increasing reach by expanding agency network to provinces
Philippines Story: Increasing reach by expanding agency network to provinces Number of branches Strategy to expand the agency network to 15 the provinces has helped us accelerate growth 10 Increase the number of branches by expanding into provincial cities Recruit and develop experienced manag
Slide 13: Investing in bancassurance partnerships and increasing the channel's contribution
Investing in bancassurance partnerships and increasing the channel’s contribution Singapore ASEAN Insurance APE Sales1 by Bancassurance Channel Indonesia (millions) Over 40 relationships signed in ASEAN 20% 44 Philippines CAGR Malaysia 15 Vietnam 2005 2011 Selective and exclusive strategic partnersh
Slide 14: Indonesia Story: Expecting to propel Insurance APE's through the Danamon deal
Indonesia Story: Expecting to propel Insurance APE’s through the Danamon deal Insurance APE Sales1 (US$ millions) 278 Danamon contribution Bancassurance is already a big Rest of Indonesia contributor towards sales in Indonesia Over 10 Bancassurance relationships in Danamon Indonesia already esta
Slide 15: Growing the Wealth and Asset Management businesses is a key focus
Growing the Wealth and Asset Management businesses is a key focus Customers’ need for wealth Asia Funds Under Management1 (US$ millions) and asset management Growing ASEAN demand for good quality ASEAN wealth (and protection) products Rest of Asia Rise of middle class ASEAN CAGR 7,457 Trustwor
Slide 16: Pursuing other opportunities to drive growth in the ASEAN region
Pursuing other opportunities to drive growth in the ASEAN region Launch in Cambodia in mid-2012: First-mover advantage and favourable demographics 100% foreign ownership allowed and very few restrictions on capital New Markets flow Leverage experience in Vietnam Continue to look at other p
Slide 17: Investing in increasing the brand awareness across the region
Investing in increasing the brand awareness across the region Vietnam Thailand Philippines Cambodia Singapore Malaysia Indonesia Despite Manulife’s long presence in ASEAN, our name awareness remains low 17
Slide 18: Singapore Story: Campaigning has significantly increased consumer awareness
Singapore Story: Campaigning has significantly increased consumer awareness Our awareness is These campaigns up 136% after have helped increase branding brand awareness campaigns in 2011 with 2 out of 3 (28% in Sep 10 vs. people in Singapore 66% in Nov 11) now aware of Manulife Singapore Almost half
Slide 19: Sustainable earnings and profits through the development of customer focused products
Sustainable earnings and profits through the development of customer focused products Insurance Wealth Management Syariah Employee Benefits Focus is not just on top line growth but also on: Designing products that meet Competition customer needs Customer Improving profit margins (sale of Needs
Slide 20: Some key risks and challenges remain
Some key risks and challenges remain Diversity ASEAN is a collection of hetrogenous countries - diversified on the basis of religion, culture and race This leads to a variety of consumer behaviours requiring unique strategies for success Key Challenge: How do we take our best practices and app
Slide 21: Appendix
Appendix: Indonesia Vietnam The Philippines Singapore Malaysia Thailand Cambodia
Slide 22: Indonesia is a key bancassurance success story
Indonesia is a key bancassurance success story Well positioned in an emerging market: Manulife Indonesia at-a-glance1 Manulife Indonesia is strong and well established and has recorded a profit 20 Ownership 95% consecutive years Established 1985 Emerging market, young population with emerging
Slide 23: Rapid expansion of agency force will be a key to success in Vietnam
Rapid expansion of agency force will be a key to success in Vietnam Vietnam highlights: Manulife Vietnam at-a-glance1 Large, emerging market Ownership 100% Future growth engine for Manulife Established 1999 Key strategies in Vietnam: Increase agency force in major cities Employees 404 Fo
Slide 24: Increasing distribution reach in The Philippines by expanding into provinces
Increasing distribution reach in The Philippines by expanding into provinces The Philippines highlights: Manulife Philippines at-a-glance1 Emerging market Ownership 100% Young population Emerging middle class Established First policy in 1901, wholly owned domestic Currently a significant m
Slide 25: Singapore's pursuing a high net-worth and wealth management strategy
Singapore’s pursuing a high net-worth and wealth management strategy Singapore highlights: Manulife Singapore at-a-glance1 Maturing market and ageing population Ownership 100% Wealth management hub for the region Established 1980 Currently a significant market for Manulife Employees ~240 K
Slide 26: Entry into Takaful market in Malaysia offers significant growth potential
Entry into Takaful market in Malaysia offers significant growth potential Malaysia highlights: Manulife Malaysia at-a-glance1 Emerging market Ownership 59% (publicly listed) Young population Established 1963 Emerging middle class Not currently a significant contributor for Employees ~240 M
Slide 27: In Thailand we are positioned well and looking to gain scale
In Thailand we are positioned well and looking to gain scale Thailand highlights: Manulife Thailand at-a-glance1 Emerging market Ownership 94.7% Not currently a significant contributor for Manulife Established 1951 Employees ~110 Key strategies in Thailand: Agents 582 Develop professional
Slide 28: Early mover strategy in Cambodia to gain market share
Early mover strategy in Cambodia to gain market share Cambodia highlights: Manulife Cambodia at-a-glance1 Currently no life insurance products available in the country Ownership 100% First firm to introduce products Established Mid-2012 (estimated) Employees NA Key strategies in Cambodia: Ag
Slide 29: Note to users
Note 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 wi
Slide 30: Thank you
Thank you SJRJR J (1 Manulife Financial | For your future
Manulife Financial — Investor Presentation (March 2012) on 6ix