Manulife Financial Corporation · TSX:MFC

Manulife Financial — America's Select Franchise Conference 2016

21 slides from Manulife Financial's conference presentation, 2016

  1. Slide 1: Delivering Results, Preparing for the Future

    Delivering Results Preparing for the Future America’s Select Franchise Conference Steve Roder Senior Executive Vice President and Chief Financial Officer

  2. Slide 2: Caution regarding forward-looking statements

    Caution regarding forward-looking statements From time to time, MFC makes written and/or oral forward-looking statements, including in this presentation. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are

  3. Slide 3: Manulife is a leading global financial services company

    Manulife is a leading global financial services company Major presence in North America and Asia  128 years of history  Among top 10 life insurer in the world1  US$28 billion market capitalization1  ~20 million customers2  ~34,000 employees2  US$697 billion assets under management and administ

  4. Slide 4: We have a major presence in…

    We have a major presence in… … four of the world’s 10 … and some of the fastest growing largest economies… markets on the planet Gross Domestic Product Gross Domestic Product Growth (US$ trillion, 2015P, current prices) (10-year CAGR, 2004-2014, US$ Constant Prices) U.S.A 18.1 China 9.9% China 11.2

  5. Slide 5: Our strategy is gaining momentum

    Our strategy is gaining momentum Develop more holistic Build and integrate Leverage skills and our global wealth and experiences across and long-lasting asset management our international customer relationships businesses operations  Wellness programs  Recent acquisitions  Local initiatives rolle

  6. Slide 6: Strong top line growth in 2015

    Strong top line growth in 2015 Insurance Sales1 Wealth & Asset Management Other Wealth Sales1 (C$ billions) Gross Flows1 (C$ billions) (C$ billions) 3.4 114.7 7.5 18% 19% 2.5 48% 22% 24% 69.2 12% 53% 3.9 23% 53% 60% 55% 52% 56% 14% 15% 47% 14% 13% 2014 2015 2014 2015 2014 2015 Institutional U.S. Can

  7. Slide 7: Strong growth in new business value driven by higher volumes and improved margins in Asia

    Strong growth in new business value driven by higher volumes and improved margins in Asia New Business Value (NBV)1 (C$ millions) 2015 new business value of $955 million, up 37% U.S. +37% vs. 2014 Canada 955 Asia 1Q16 new business value of $287 million, up 70% 76 vs. 1Q15: 188 + Volumes and product

  8. Slide 8: Embedded Value growth reflects new business written at solid margins and the benefit of currency

    Embedded Value growth reflects new business written at solid margins and the benefit of currency Embedded Value1 (C$ billions) Embedded Value (“EV”) for our Insurance and Other Wealth businesses 2015 EV of $24/share, or $47.8 billion up 21% from 2014 47.8 + Just under half of the growth in EV relate

  9. Slide 9: Growing scale, particularly in Wealth and Asset Management

    Growing scale, particularly in Wealth and Asset Management Total assets under management and administration (AUMA)1 (C$ billions) 935 691  AUMA up $244 billion in 2015 599 vs. 2014 531  Driven by: + Acquisitions + Strong business growth + Currency movements 2012 2013 2014 2015 Other wealth Insuran

  10. Slide 10: Delivering sustainable underlying core earnings growth

    Delivering sustainable underlying core earnings growth Core earnings and net income (C$ billions) 3.5 3.4 3.1  Positive core earnings trajectory highlights Manulife’s powerful 2.9 operating momentum 2.6 2.2 2.2  In 2015, net income was 1.8 negatively impacted by mark-to- market charges related to

  11. Slide 11: Core earnings growth trajectory facilitating sustainable dividend increases

    Core earnings growth trajectory facilitating sustainable dividend increases Quarterly dividend (Cents per common shares; As of declaration date) +42% 18.5₵/sh 17.0₵/sh  Three dividend increases in less 15.5₵/sh than two years 13.0₵/sh  Target dividend payout ratio range of 30-40%  Dividend increa

  12. Slide 12: Executing on a strategy that is expected to lead to sustainable Core ROE expansion

    Executing on a strategy that is expected to lead to sustainable Core ROE expansion For illustrative purposes only. Relative proportions – Not to scale. Core Return on Equity (ROE) expansion over the medium term1 13%+ Other areas of continuing focus  Generation of free cash flow for Impact of 10.3%

  13. Slide 13: Our fast growing Asia and Wealth & Asset Management businesses generate our highest returns…

    Our fast growing Asia and Wealth & Asset Management businesses generate our highest returns… Core earnings growth Core ROE (2015 vs. 2014; based on C$ reporting) (2015) Global Wealth and 27% 22% Asset Management Asia ex. WAM 30% 19% All other businesses1 20% 8% 19% 9% Total Company Total Company (in

  14. Slide 14: … and have been the focus of our recent major acquisitions and partnerships

    … and have been the focus of our recent major acquisitions and partnerships Acquisition of Standard Life’s Canadian Acquisition of New York Life’s operations Retirement Plan Services business1 Effective: January 30, 2015 Effective: April 14, 2015 15-year exclusive bancassurance Acquisition of Standa

  15. Slide 15: Asia – executing on a tremendous opportunity

    Asia – executing on a tremendous opportunity Core Earnings Insurance Sales (US$ millions) (US$ millions) +18% +28% 1,019 1,507 913 1,278 2014 2015 2014 2015 New Business Value Gross Flows (US$ millions) (US$ millions) +53% +56% 537 12,240 367 8,149 2014 2015 2014 2015 Note: Core Earnings has not bee

  16. Slide 16: Strong growth in Asia New Business Value and Asia NBV margin is improving

    Strong growth in Asia New Business Value and Asia NBV margin is improving driven in part by Japan Manulife Asia New Business Value (NBV)1 Manulife Asia NBV Margin (US$ millions) (%) +45% 34% +67% Total 27% 25% Japan +57% +45% 171 155 13% 116 122 95 98 78 69 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q

  17. Slide 17: Wealth and Asset Management – organic growth and acquisitions driving scale

    Wealth and Asset Management – organic growth and acquisitions driving scale Core Earnings Net Flows1 (C$ millions) (C$ billions) +27% +72% 639 34.4 502 18.3 2014 2015 2014 2015 AUMA1,2 Gross Flows1 (C$ billions) (C$ billions) +44% +46% 510 114.7 315 69.2 2014 2015 2014 2015 Note: Core Earnings has n

  18. Slide 18: Recently made strategic investments to bolster our scale in the pension business

    Recently made strategic investments to bolster our scale and market positions in the pension business Pension AUMA Pension AUMA Pension AUMA in Canada in the U.S. in Hong Kong (C$ billions) (US$ billions) (US$ billions) +106% +62% +25% 65 136 18 Acquired Acquired 2 Acquisition Standard New York of S

  19. Slide 19: Our mutual fund businesses in North America are displaying superior growth momentum

    Our mutual fund businesses in North America are displaying superior growth momentum to the market U.S. Canada Organic Growth Rate1 AUM Growth Rate2 (%) (%) John Hancock Manulife Industry Industry 33% 34% 33% 20% 19% 18% 15% 15% 14% 18% 8% 5% 10% 3% 1% -1% 2012 2013 2014 2015 2012 2013 2014 2015 1 So

  20. Slide 20: Summary

    Summary  Generating strong top line and new business value growth  Growing scale  Delivering sustainable, underlying core earnings growth  Focusing on regular and sustainable dividend increases as earnings grow  Executing on a strategy that is expected to expand Core ROE → Focusing growth on As

  21. Slide 21: Thank you

    Thank you Investor Relations contacts Robert Veloso, MBA, CFA Daniel Kenigsberg, MBA, CFA David Rancourt, CFA Vice President Assistant Vice President Assistant Vice President robert_veloso@manulife.com daniel_kenigsberg@manulife.com david_rancourt@manulife.com (416) 852-8982 (416) 852-7208 (416) 852

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