Manulife Financial Corporation · TSX:MFC

Manulife Financial — Investor Presentation (February 2016)

14 slides from Manulife Financial's investor presentation, Feb 11, 2016

  1. Slide 1: Core Return on Equity expansion path

    Core Return on Equity expansion path February 11, 2016

  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: Execution of our strategy is expected to lead to sustainable Core ROE expansion

    Execution of our strategy is expected to lead to sustainable Core ROE expansion For illustrative purposes only. Relative proportions – Not to scale. Core ROE expansion over the medium term1,2 Other levers being actively explored  Balance sheet optimization 13%+ − Blocks of business with suboptimal

  4. Slide 4: If not for Oil & Gas-related charges, 2015 core earnings would have included $346 million

    If not for Oil & Gas-related charges, 2015 core earnings would have included $346 million in investment-related experience WTI crude oil prices1 (US$ per barrel) Oct. 2014 to Dec. 2015 120  Oil prices dropped 60% since the fall of 110 2014 -60% 100 90  Our Oil & Gas portfolio was impacted, recordi

  5. Slide 5: 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 earnings1 growth Core ROE1 (2015 vs. 2014; based on C$ reporting) (2015) Global Wealth and 27% 22% Asset Management Asia ex. WAM 30% 19% All other businesses2 20% 8% Balance Sheet Optimization project u

  6. Slide 6: … 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 Acquisition of New York Life’s Canadian operations Retirement Plan Services business1 Effective: January 30, 2015 Effective: April 14, 2015 Strategic rationale: Strategic rationale: • Accelerat

  7. Slide 7: Recent major transactions' contributions to core earnings growth and Core ROE accretion expected to increase rapidly

    Recent major transactions’ contributions to core earnings growth and Core ROE accretion expected to increase rapidly For illustrative purposes only − Not to scale. Current estimation of core earnings contributions from recent major acquisitions and partnerships1,2,3 ($ millions) 400-4504  Based on

  8. Slide 8: Our E&E initiative makes us grow more efficiently…

    Our E&E initiative makes us grow more efficiently… General expenses as % of AUMA1 (%; based on C$ reporting) 0.81%  Areas of focus include operations, information 1.0 0.83% services, procurement, workplace 0.81% 0.77% 0.69% 0.67% transformation, organizational design 0.5 − 400 projects in total E&E

  9. Slide 9: … and frees up resources to fund strategic initiatives to sustain long-term earnings growth

    … and frees up resources to fund strategic initiatives to sustain long-term earnings growth and support ROE Innovative way to engage with customers Wellness and reward them for • Launched in the U.S. in April 2015; • Launched in March 2015 in Hong programs healthy living through Will be launched in

  10. Slide 10: Cross-functional team has been actively assessing options to optimize the balance sheet

    Cross-functional team has been actively assessing options to optimize the balance sheet 1 Identified blocks of business with sub-optimal capital utilization / lower ROE  Includes a number of blocks of business in U.S. and Canada 2 Optimization assessment (in-flight)  Prioritized blocks with higher

  11. Slide 11: Substantial cash generation creates opportunities for further capital deployment

    Substantial cash generation creates opportunities for further capital deployment Remittances as a proportion of core earnings for the 2013-2015 three-year period1,2 (C$ billions) 8.9  Generating significant cash flows available for redeployment into: 7.1 − Organic growth − Strategic and financial a

  12. Slide 12: While not in management's control, improvements in macro conditions would also support Core ROE expansion

    While not in management’s control, improvements in macro conditions would also support Core ROE expansion Rising Positive equity Currency interest rates markets performance movements Hedging program has Hedging program has Manulife is sensitive to largely eliminated direct significantly reduced dire

  13. Slide 13: 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

  14. Slide 14: Thank you

    Thank you Investor Relations contacts Robert Veloso, MBA, CFA Daniel Kenigsberg, MBA, CFA David Rancourt, M.Sc., 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 (4

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