Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (March 2019)
74 slides from Sun Life Financial's investor day presentation, Mar 26, 2019
Slide 1: Forward-looking Statements
In the Investor Day preset s hereinafter defined), Sun Life Financial Inc. ("SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and assoc are collectively referred to as “the Company’, “Sun Life Financial”, “we”, “our”, and “us Forward-looking Statements Certain statements in thi
Slide 2: Agenda
AGENDA Strategic Overview Financial Overview Q&A Session Sun Life Financial Canada Sun Life Financial U.S. Sun Life Financial Asia Q&A Session Sun Life Investment Management MFS Investment Management Q&A Session Closing Remarks and Session End Dean Connor Kevin Strain Jacques Goulet Dan Fishbein Cla
Slide 3: Delivering on our purpose, executing on strategic priorities
Dean Connor President & CEO, Sun Life Financial DELIVERING ON OUR PURPOSE, EXECUTING ON STRATEGIC PRIORITIES AND DRIVING CLIENT OUTCOMES as e « : Sun Life Life's brighter under the sun NVESTOR DAY 2019 KEY MESSAGES val A diversified business model, a strong balance sheet and financial discipline tha
Slide 4: History of strong execution
HISTORY OF STRONG EXECUTION Se Generating Strong Top and Bottom Line Growth Value of New Business" Insurance Sales“ (Excluding Sun Life Asset Management) ($ millions) 4-Year Growth (Smiling) 2018 Underlying EPS) ca | | $644 2014 2018 2018 Underlying ROE Total AUM™ Wealth Sales (S billions) (S billio
Slide 5: Effectively deploying capital through M&A
EFFECTIVELY DEPLOYING CAPITAL THROUGH M&A Over $2 billion in Capital Deployed over the Past Three Years, millions more in Strategic Investments G all al & Lifetime ROE in-line with Strategic fit under Four Pillar Adds scale or capabilities casein a 2019 Combining Bentall Kennedy and GreenOak RealEst
Slide 6: A client centric focus with alignment across our pillars
A CLIENT CENTRIC FOCUS WITH ALIGNMENT ACROSS OUR PILLARS A Growth Strategy Focused on High ROE and Strong Capital Generation Through Leading Positions in Attractive Markets Globally DIGITAL, DATA A Leader in Insurance and & ANALYTICS F Wealth Solutions in our 4 peur ty U.S. Canadian Home Market roup
Slide 7: Client index scores highlight progress on client initiatives
CLIENT INDEX SCORES HIGHLIGHT PROGRESS ON CLIENT INITIATIVES Proactive Contact Drives Increases in Client Index Scores 7 out of 1 1 Client Satisfaction with Improvement Business Sun Life businesses with top Proactive Contact vs. 2017 Initiatives fe q (6 very satisfied) (36 pt. improvement) quartile
Slide 8: Engaged employees aligned by our purpose
ENGAGED EMPLOYEES ALIGNED BY OUR PURPOSE Attracting, Retaining and Developing Top Talent is Central to our Success 85% 2,500 $150M+ Engagement Index Score; New jobs added over the past three Invested in training and outperforming the Global years to advance our innovation, digital, development since
Slide 9: Leading through distribution excellence
LEADING THROUGH DISTRIBUTION EXCELLENCE Sales and Advice Focused on Client Needs, Data & Analytics and More Holistic Approach a \ Deep expertise in Leadin iliti ‘ . : c g capabilities, advisory channel, High quality advice including technology and Innovative mindset bancassurance, broker and solutio
Slide 10: Strong execution supports medium-term financial objectives
STRONG EXECUTION SUPPORTS WS MEDIUM-TERM FINANCIAL OBJECTIVES” UNDERLYING RETURN ON EQuity® DIVIDEND PAYOUT RATIO SUN LIFE FINANCIAL (1) See “Forward-looking Statements” in the appendix INVESTOR DAY 2019 | 1! @ a financial > See i 2 EXECUTING ON OUR AMBITION To be One of the Best Insurance and Asset
Slide 11: Key Messages
KEY MESSAGES A diversified business model, a strong balance sheet and financial discipline that provides us with a strong offence and defense We are delivering on our strategic priorities, including Client obsession, to drive meaningful growth across all pillars Digital transformation is deeply embe
Slide 12: Demonstrating strong execution, financial discipline and capital strength
b= B —_—= -* Kevin Strain Chief Financial Officer, Sun Life Financial DEMONSTRATING STRONG EXECUTION, FINANCIAL DISCIPLINE AND CAPITAL STRENGTH a | . & : Sun Life Life's brighter under the sun SUN LIFE FINANCIAL INVESTOR DAY 2019 KEY MESSAGES Proven track record of execution on medium-term financial
Slide 13: Proven track record of execution
PROVEN TRACK RECORD OF EXECUTION Delivering Strong Growth and Exceeding Medium-Term Financial Objectives Underlying Net Income) Underlying ROE ($ millions) 13% EPS CAGR®) 4.2% 2,947 say 27s 2,546 11.6% 2,305 2,335 ‘ ‘ ‘ ; : 2014 «2015 «42016 «62017 «= 2018 2014 «2015 2016 2017 2018 mas growth to 14.
Slide 14: Well diversified balance sheet
WELL DIVERSIFIED BALANCE SHEET SS High Quality Portfolio to Meet Policyholder Obligations Investment Profile Debt Securities, Commercial Bex Pecerbers 1/2719) » Well diversified and duration Mortgages and Loans by Rating matched portfolio {as at December 31, 2018) * Long history of managing eee pbs
Slide 15: Growing top line while increasing profitability of sales
GROWING TOP LINE WHILE INCREASING PROFITABILITY OF SALES VNB Driven by Higher Sales, Improved Mix of Business, Repricing and Gaining Scale in Asia ~ 4-Year Growth Value of New Business‘) (VNB) (Excluding Sun Life Asset Management) (§ millions) 2018 Insurance Sales(” CAGR +16 CAGR 1,154 2018 Wealth S
Slide 16: Strong defense through disciplined risk management
STRONG DEFENSE THROUGH DISCIPLINED RISK MANAGEM De-risking Activities Have Led to Reduced Income and Capital Sensitivities NET INCOME CAPITAL Sensiti to a 50 Basis Point . . Sensiti to a 50 Basis Point cove Interest Rates * No direct exposure to U.S. Variable rpenlig literest Rates (as a % of report
Slide 17: Demonstrated strength in capital across multiple measures
DEMONSTRATED STRENGTH IN CAPITAL ACROSS MULTIPLE MEASURES Strong Capital Position Provides Significant Flexibility 144% LICAT®) ratio at the holding company level. Higher than industry average of 134% Financial leverage ratio (%) 380 bps lower than long-term target ratio of 25% 25.2 2014 «2015 «2016
Slide 18: Driving value from closed blocks of business
DRIVING VALUE FROM CLOSED BLOCKS OF BUSINESS Run-off Businesses Contributed 12% of Underlying Net Income in 2018 . Sun Life U.S. Sun Life U.K. In-force Management Assets under Account value management (USS billions) (GBP billions) lil WT 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 SUN LIFE FIN
Slide 19: Key Messages
KEY MESSAGES Proven track record of execution on medium-term financial objectives Demonstrated financial discipline and high quality earnings §) + Improved business mix, strong balance sheet and well-managed risk profile + Profitable sales growth driven by improved mix and repricing * Investing for
Slide 20: Canada is a growth market for Sun Life
—»— 1] | b ~ help: Jacques Goulet President, Sun Life Financial Canada CANADA IS A GROWTH MARKET FOR SUN LIFE & ¢ Sun Life Life's brighter under the sun SUN LIFE FINANCIAL INVESTOR DAY 2019 KEY MESSAGES Proven track record of strong growth while advancing our leadership position in Canada Macro tren
Slide 21: Proven track record of strong growth
PROVEN TRACK RECORD OF STRONG GROWTH Strong Financial Discipline While Investing in Key Strategic Priorities to Drive Growth Underlying Net Income) Underlying Return On Equity Value Of New Business ($ millions) (ROE).2) (VNB) ($ millions) +6% +400 +10% CAGR® | [os 1 $1,036 15.2% $630 . 11.2% $435 zs
Slide 22: Macro trends in Canadian market creating opportunities
MACRO TRENDS IN CANADIAN MARKET CREATING OPPORTUNITIES FOR SUN LIFE Canadians are Concerned About Outliving their Retirement Savings, Staying Healthy and Having Convenient =| Access to Healthcare Protecting your family Managing your health Retiring with sufficient and loved ones and well-being money
Slide 23: Supporting clients with holistic advice at moments that matter
SUPPORTING CLIENTS WITH HOLISTIC ADVICE AT MOMENTS THAT MATTER Our Combined Platform Provides a Competitive Advantage Leadership at the worksite driven SUN by strategies like Total Benefits with a tol Clients Clients Clients ROLL-OVER phe tier pvenl Industry leading technology and digital capabiliti
Slide 24: Investment in digital capabilities
INVESTMENT IN DIGITAL CAPABILITIES Investments Creating New Capabilities and Extending Technology Lead Voice-enabled personal assistants provide search and account inquiry eSignature capability ~ 31% Applications in our Career Advisor network are straight-through Pilot to digitally engage Clients el
Slide 25: Making it easier for our clients to do business with us
MAKING IT EASIER FOR OUR CLIENTS TO DO BUSINESS WITH US Our Leading Digital, Data and Analytics Capabilities Differentiate us to Engage Clients in the Ways they Prefer z a = Full-service advice Estate and financial Assisted-Advice planning Financial advice Licensed professionals via call centre | «
Slide 26: Engaged employees driven by attracting, developing and retaining talent
ENGAGED EMPLOYEES DRIVEN BY ATTRACTING, DEVELOPING AND RETAINING DIVERSE TOP TALENT Named one of the Top 25 Companies to work for in Canada by LinkedIn One of “Canada’s Top Employers for Young People" for the 3" year in a row” Perfect score on the LGBT Corporate Canadian Index (CCI) for the 2°4 year
Slide 27: Leveraging our worksite advantage with clients and plan members
LEVERAGING OUR WORKSITE ADVANTAGE WITH CLIENTS AND PLAN MEMBERS Rollover and In-Plan Driving Growth by Connecting with Clients at Moments that Matter Rollover Wealth Asset Gathering” Assets Under Sales” (§ millions) Administration” (§ millions) (§ millions) +14% +30% +14% [cack | [cacr 1 [caer 1 $1,
Slide 28: Sun Life Global Investments expanding wealth presence
SUN LIFE GLOBAL INVESTMENTS EXPANDING WEALTH PRESENCE Strong Fund Performance Fueling Sales and Asset Growth Sun Life GLOBAL ~ Investments SLGI Assets Under Management (6 billions) . 2014 2015 Specializing in innovative investment solutions = Bringing the best in class asset managers to Canadians *
Slide 29: Financial discipline focused on prioritization and strong earnings growth
FINANCIAL DISCIPLINE FOCUSED ON PRIORITIZATION AND STRONG EARNINGS GROWTH 6%+ earnings growth”) Market Growth Rate Optimization of Accelerating Growth Delivering New Sun Life Canada Businesses Engines Models Earnings Growth Rate 19 KEY MESSAGES Proven track record of strong growth while advancing ou
Slide 30: Extending our reach and deepening client relationships in U.S. Group Benefits
Dan Fishbein, M:D. President, Sun Life Financial U.S. EXTENDING OUR REACH AND DEEPENING CLIENT RELATIONSHIPS IN U.S. GROUP BENEFITS Aa 4 . « : Sun Life Life's brighter under the sun SUN LIFE FINANCIAL NVESTOR DAY 2019 KEY MESSAGES Significant improvements in profitability have been driven by growth,
Slide 31: Delivering significant growth and profitability improvements
DELIVERING SIGNIFICANT GROWTH AND PROFITABILITY IMPROVEMENTS Underlying Net Income) After-Tax Group Sales (US$ millions) Benefits Margin”) (US$ millions) (*) +31% +780 +14% Ccacr® 1 | [cacr 1 2014 2018 2014 2018 2014 2018 measure See Measures" inthe SUCCESSFULLY ACHIEVING INTEGRATION MILESTONES On T
Slide 32: Deepening relationships in national accounts
DEEPENING RELATIONSHIPS IN NATIONAL ACCOUNTS Executing on Growth Opportunities in the Large Case Market 2018 Achievements * Strong presence in the National Accounts market with more than US$700 million of business in-force”” » Relationships with consultants and large national brokers critical to dis
Slide 33: Helping clients get the coverage they need
HELPING CLIENTS GET THE COVERAGE THEY NEED Transforming the Benefits Experience Through Ease of Doing Business MAXWELL HEALTH phday &: oe + Provides an intuitive, digital Client a experience » Delivers seamless integration of all a enrollment phases Z f » Drives deeper Client relationships » Proacti
Slide 34: U.S. Stop-Loss market opportunity
U.S. STOP-LOSS MARKET OPPORTUNITY Market Trends Support Continued Strong Growth in Self-insured Market 61%" of U.S. employees ii? are covered by a self-insured plan Smaller moving to self-insured model” (1) Henry J. Kaiser Family Foundation Employer Health Benefits Survey (2) PwC's Health Research I
Slide 35: Size, scale, and data provide a competitive advantage
SS SIZE, SCALE, AND DATA PROVIDE A COMPETITIVE ADVANTA\ Leveraging Capabilities to Extend Leadership Position in a Growing Market @ @ #1 INDEPENDENT U.S. LARGEST DEDICATED DIGITAL, DATA & ANALYTICS STOP-LOSS PROVIDER: SALES TEAM: DRIVING RESULTS: » Access to 90% of stop-loss * 45 specialists with de
Slide 36: Providing a full-range of turnkey group products & services
PROVIDING A FULL-RANGE OF TURNKEY GROUP PRODUCTS & SERVICES FullscopeRMS Broadens our Offering for Industry Partners FullscopeRMS* » Acomprehensive suite of group capabilities for insurance companies, health plans and third party administrators » Based on our successful DisabilityRMS model » Leading
Slide 37: Driving double digit earnings growth
DRIVING DOUBLE DIGIT EARNINGS GROWTH a GROUP cae ng Group Benefits Target After U.S. Group Benefits target after-tax profit margin Employee Benefits 3-4% Stop-Loss 7-8% Blended Market Contribution from Contribution from Gray Bes somes Eakigs Growth Rate’ ‘Margin Improv Strategic Yocom hare “Market g
Slide 38: Well positioned in Asia's largest and fastest growing markets
‘SS ruil Claude Accum President, Sun Life Financial Asia WELL POSITIONED IN ASIA’S LARGEST AND FASTEST GROWING MARKETS SUN LIFE FINANCIA KEY MESSAGES Established in many of Asia's largest and fastest growing markets with attractive ne fundamentals to support double-digit growth i Proven track record
Slide 39: Our markets in Asia have attractive fundamentals
OUR MARKETS IN ASIA HAVE ATTRACTIVE FUNDAMENTALS Global Growth in Insurance Penetration and Wealth Creation will be Powered by Asia's Expanding Middle Class ~90% of the next billion entrants into the middle class will be in Asia‘) Global Middle Class Spending”) 2015 Mi Asia-Pacific Ml Rest of World
Slide 40: Continued strong track record of execution
CONTINUED STRONG TRACK RECORD OF EXECUTION... Consistent Top-line and Bottom-line Growth 4 Value of New Business’) Underlying Net Income“) mamnbex of Cents (§ millions) (§ milions) (in millions) 417% +19% +16% 21 360 523 1 —_ 182 ; 290 = 2014 2018 2014 2018 2014 2018 Individual Life & Health Wealth
Slide 41: Achieving excellence across all distribution platforms
ACHIEVING EXCELLENCE ACROSS ALL DISTRIBUTION PLATFORMS... Driving Quality and Reach Through a Multi-channel Approach Agency Bancassurance We have strong bank partners in 5 markets, and bancassurance sales have MOST RESPECTED ADVISOR grown at a CAGR of 25% since 2014, Build MRA as a meaningful = care
Slide 42: Reaching more clients with a balanced product suite
REACHING MORE CLIENTS WITH A BALANCED PRODUCT SUITE Our product strategy is Client-centric - Develop products through Client insights Focused on improving speed-to-market Continue to introduce innovative products and solutions to differentiate our offering Focus on H&A to balance our portfolio in ea
Slide 43: Hong Kong Client App
vy Hong Kong Client App Family coverages summary — on Dashboard View your policies and coverage of your whole family on one page Push Notification — Premium due alert Receive a heads-up of the premium due dates of all your plans and policies Investment-linked fund management Keep abreast of the fund
Slide 44: Capturing growth in underpenetrated mutual fund market in India
Well Positioned to Capture Growth in One of the World's Most Underpenetrated Mutual Fund Markets ABSLAMC is a leading Mutual Fund Player in India Mutual Fund Penetration a with $49 billion in assets under management Mutual Fund AUM as a % of GDP() Assets Under Management 1.38 population’) ($ billion
Slide 45: Reaching beyond our existing market segments
REACHING BEYOND OUR EXISTING MARKET SEGMENTS Leverage International's Expertise to Penetrate Untapped Onshore HNW Sun Life Financial® INTERNATIONAL Asia HNW market is fastest growing globally Providing Distribution Partners with insight, and expected to nearly double by 2025") ba and support to serv
Slide 46: We will continue to grow scale
WE WILL CONTINUE TO GROW SCALE" x = | And Improve Margins in Each of our Markets — > | Philippines — Extend leadership = India Life - improve China = foais ba position distribution quality sustainable value creation ca Hong Kong — Expand distribution through strategic partnerships Indonesia — Focus
Slide 47: Key Messages
KEY MESSAGES Established in many of Asia's largest and fastest growing markets with attractive fundamentals to support double-digit growth Proven track record of success evidenced by our strong financial results Focus on outcomes for Clients to support business growth * Continued focus on distributi
Slide 48: Expanding capabilities across our asset classes and delivering exceptional investment performance
Steve Peacher President, Sun Life Investment Manage' EXPANDING CAPABILITIES ACROSS OUR ASSET CLASSES AND DELIVERING EXCEPTIONAL INVESTMENT PERFORMANCE & = Sun Life Life's brighter under the sun INVESTOR DAY 2019 KEY MESSAGES Institutional demand for liability-driven investing, alternative fixed inco
Slide 49: Our target markets continue to grow with favourable market trends
(USS trillions) (USS trillions) 50% 16 25 OUR TARGET MARKETS CONTINUE TO GROW WITH FAVOURABLE MARKET TRENDS LDI Assets and Allocations | Growth of Corporate Alternatives Outsourced ieuans — (USS billions) Fixed Income Allocations Assets Growth Assets | $60 s8@ fe! 3 & 2383388 age RR9888 $20 2012 201
Slide 50: Bentall Kennedy & GreenOak: combining the strengths
BENTALL KENNEDY & GREENOAK: COMBINING THE INN STRENGTHS OF TWO LEADING INVESTMENT MANAGERS" Complementary Operations - Expanded Capabilities - Global Reach SS Complementary global platform with combined AUM') of $40 billion and Der coe, 700+ clients AUM Eeeaeyean Core + Expands product suite into cl
Slide 51: Increase in assets driven by organic growth and strategic acquisitions
INCREASE IN ASSETS DRIVEN BY ORGANIC GROWTH AND STRATEGIC ACQUISITIONS Assets Under Management2.) ($ billions) Target Operating Margin” 20%* 2015 2016 2017 2018 (HUSLIC MM Ryan Labs [Mi Prime Advisors [lll Bentall Kennedy ——"GreenOak (1) Includes ~$14 billion of AUM (as of December 31, 2018) from th
Slide 52: Continued focus on key success factors to drive growth
CONTINUED FOCUS ON KEY SUCCESS FACTORS TO DRIVE GROWTH PERFORMANCE CAPABILITIES DISTRIBUTION SCALE => GROWTH Outstanding Broad set of yield- Sales efforts Organized for scale Increases in A\ investment oriented organized to bring and growth revenue and performance and investment our complete through
Slide 53: Appendix: Important information related to this presentation
APPENDIX Important information related to this presentation This presentation is intended for institutional investors only. It is not for retail use or distribution to individual investors. The information in this presentation is not intended to provide specific financial, tax, investment insurance,
Slide 54: Delivering on our purpose, executing on strategic priorities and focusing on client outcomes
Chief Executive Officer, MFS Investment Management DELIVERING ON OUR PURPOSE, EXECUTING ON STRATEGIC PRIORITIES AND FOCUSING ON CLIENT OUTCOMES SUN LIFE FINANCIAL INVESTOR DAY 2019 of success and a MEFS is differentiated in its ability to deliver MFS has been making on strategic initiatives MFS is a
Slide 55: History of strong execution
HISTORY OF STRONG EXECUTION MFS is a Significant Source of Income and Cash Flow Net Income Average Net Assets() (US GAAP US$ millions) (US$ billions) +5% +3% (cack 1 car 1 Dividends (US$ millions) ACTIVE REMAINS THE LARGER REVENUE OPPORTUNITY Money Continues to Flow from Active to Passive Revenue’)
Slide 56: Gradual reduction in fees across both active and passive
GRADUAL REDUCTION IN FEES ACROSS BOTH ACTIVE AND PASSIVE Actively Managed”) Passively Managed”) 0.86% 5 0.84% 0.82% 0.78% 0.63% 0.60% Si 0.55% B ous 0.10% | 0.10% | cos EEF oom Ee aoon 2014 2015 2016 2017 2014 2015 2016 2017 mEquity ~ Bond mEquity © Bond (1) Source: IC, Lipper and Momingstar. Active
Slide 57: Industry consolidation
INDUSTRY CONSOLIDATION SX Three Broad Themes Underpinning the Acceleration in Industry Consolidation > C} 1. Broadening Go Big Strategic Horizons Partnerships Acquiring to expand product Adding scale to find Using a minority stake to suite or expand into new “middle of the P&L" enhance distribution
Slide 58: World class distribution platform
WORLD CLASS DISTRIBUTION PLATFORM Starting from a Position of Strength » World's largest sovereign wealth funds » World's largest pension funds * Onall 20 of the industry's top 20 U.S. retail dealer platforms * Top 10 brand awareness amongst U.S. retail managers » Non-US. retail distribution through
Slide 59: Measuring conviction with time
MEASURING CONVICTION WITH TIME Holding Horizon Matters to Outperformance “Stocks largely held by long-horizon funds outperform stocks largely held by short-horizon funds = by 2.4%-3.8% a year, adjusted ton ee ee for risk, over the following 6.85 years five-year period.” Short horizon funds hold stoc
Slide 60: Engaging with clients on investment horizon
ENGAGING WITH CLIENTS ON INVESTMENT HORIZON Sample Rolling Returns, March 1996 — December 2018 Rolling 10 Years ee 2G Manager Returns (%) 5 ° 5 15 5 ° 5 10 15 Rolling 5 Years Rolling 3 Years 35 2° 2 £40 5 € 5 g é « 0 zB 5 % Benchmark Retums (%) 215 Benchmark Returns () $-10 = -25 -10 5 ° 5 10 20 25
Slide 61: ESG is embedded in our investment style
ESG IS EMBEDDED IN OUR INVESTMENT STYLE Most ESG-Friendly Fund Shops Firms with the largest proportion of actively managed equity fund assets in products with “high” or “above average” ESG scores. _ -_ Lazard AMG Funds Invesco BlackRock JP. " Oppenheimer John fan Morgan Funds Hancock SUN LIFE FINANC
Slide 62: Diversity drives sustainable long-term value creation
\\ DIVERSITY DRIVES SUSTAINABLE LONG-TERM VALUE CREATIC HOW WE BUILD TEAMS HOW WE INVEST HOW WE ALIGN INVESTOR DAY 2019 DIVERSITY OF MFS Investment division are women Investment employees 17% Women in Be from 12% in 2010) ex-US ey C-Suite fyag New hires over the last 5 years MFS assets Woren at Offi
Slide 63: Investment performance remains strong against peers
INVESTMENT PERFORMANCE REMAINS STRONG AGAIN PEERS... % of MFS Funds’ Class A Share Assets ranked in the top half of their Lipper category All Funds 70% 78% 79% 94% Fixed-Income Funds 61% 66% 59% 86% Global & International Equity Funds 99% 100% 91% 91% Domestic Equity Funds 66% 77% 83% 97% All Funds
Slide 64: Where it beat passive benchmarks
.. WHERE IT BEAT PASSIVE BENCHMARKS 10 year Rolling Performance (1998 — 2018) 1-month roll-forwards AVG EXCESS —_% OF PERIODS COMPOSITE BENCHMARK RETURNS* = OUTPERFORMING 5 largest MFS Large Cap Value Equity Russell 1000 Value - Total Return Sebi MES Global Equity MSCI The World index - Net Return 2
Slide 65: Geographic segments by market addressability
GEOGRAPHIC SEGMENTS BY MARKET ADDRESSABILITY Growing Outside the U.S. is a Priority 5Yr. Total Revenue Opportunity by S5Yr. Net Flows 2018-2022, $8, By Country 50% 70% tm o RB sow F x Q vec 3S 30% Italy ‘ Spain @ Asi2-Pacific = 20% Other Americas Key: @ Americas eS es on “ © Evrope-Middle East! : on
Slide 66: Gaining an advantage through big data
GAINING AN ADVANTAGE THROUGH BIG ee Employ Data Analytics to Drive Better Client Outcomes QQ gh iS @ Embrace new trends in and partner with to drive better business information technology... leading experts... outcomes. * Artificial intelligence * Universities * Client engagement quality * Digital *
Slide 67: MFS cost structure flexibility
MFS COST STRUCTURE FLEXIBILITY TOTAL COMPANY EXPENSES PERSONNEL EXPENSES aid (50% of Total Expenses) Sales Commissions Amortization of % Deferred Variable Volume / Formulaic 59% Variable Salaries and Compensation 41% Benefits 30% sun ure rinanciat @ INVESTOR DAY 2019 | 27 PRE-TAX INCOME AND MARGINS
Slide 68: Key Messages
KEY MESSAGES Proven track record of success and a significant source of revenue and net income opportunity MFS is differentiated in its ability to deliver consistent long-term investment returns MFS has been making solid progress on strategic initiatives MFS is a strong financial contributor to Sun
Slide 69: Appendix: Investment Performance Presentation Report
APPENDIX investment M Performance Presentation Report 2018, Q4 J s A. MF: Composite: NFS inernabonal Equty Compote ‘Benchmark: MSC! EAFE - Net Reta Pens Tompsate —Genchmart (030 milion) Creation Date: 31-Dec-1997 = == nite Inception Date: 01-Mor.1906 =e ues ‘ mane lnvvestinent Objective: seen capt s
Slide 70: Performance Presentation Report 2018, Q4
yet kms Bencrmart | a | Coviation Assets feelin: ia 0 It’s _ compote Compost st _ aaa a eo aaa pened jetiees ators Despersion End of Period aon Creation Dove: Ea La ae a w Li teases 73 Inception Date: 0! Jan 1908 aid ue es ne ” eles - = vm " m = ‘a meet te erga gown capes Rouge nvesmerts nna 2278 cy
Slide 71: Performance Presentation Report 2018, Q4
Performance Presentation Report 2018, Q4 Q MES’ " anasréevston __ Assets Composite Benchmar: Russe 10008 Crowe Tt Es ea ‘Creation Oe: 31-Dec-1097 a aot a 20 ee mrs ‘neepion Dae: 0809-1005 a eae Obata: fo rower on er ow wee ange a Teper ary eS 7 wane at igen sn mane aa 296 ar Einrenes wang paws thee
Slide 72: Appendix: Forward-Looking Statements
APPENDIX INVESTOR DAY 2019 Forward-Looking Statements Certain statements made in the Investor Day presentations are forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995
Slide 73: Risk Factors
Risk Factors reer Face el cas oe ions and esti and ions and proj to be inaccurate and our actual results or events to differ mat fro 4 in or implied by th made in the Day pr ions, including our are set out below. The realization 0 poking i ial objecti depends on our busi ‘ance which, in turn, is sub
Slide 74: Non-IFRS financial measures
Return on equity Fi leverage ratio Dividend payout ratio Value of New Business reven [inter dn net ratio for MFS fetes ming for SLF U.S. Group Benefits . caret . Assumption changes and management actions Real estate market seraltivites 13. Other. also uses the ¥,non IFRS financial measures for which