Manulife Financial Corporation · TSX:MFC
Manulife Financial — Shareholder Meeting (May 2015)
64 slides from Manulife Financial's shareholder meeting presentation, May 7, 2015
Slide 1: Delivering Results, Preparing for the Future
Delivering Results Preparing for the Future Manulife Financial Corporation and The Manufacturers Life Insurance Company Annual Meeting Thursday, May 7, 2015
Slide 2: Richard B. DeWolfe, Chairman of the Board
Delivering Results Preparing for the Future Richard B. DeWolfe Chairman of the Board
Slide 3: Platform Introductions
Platform Introductions Stephen B. Roder Senior Executive Vice President and Chief Financial Officer Donald A. Guloien President and Chief Executive Officer Stephen P. Sigurdson Executive Vice President and General Counsel Antonella Deo Vice President and Corporate Secretary 3
Slide 4: Recognizing Retiring Directors
Recognizing Retiring Directors Scott M. Hand 4
Slide 5: Recognizing Past Chairs of the Board
Recognizing Past Chairs of the Board William R. Blundell Sydney E. Jackson Arthur R. Sawchuk 5
Slide 6: Recognizing Employees
Recognizing Employees MM! Manulife. MM Manulife
Slide 7: Annual Meeting: Calling the Meeting to Order
Annual Meeting Calling the Meeting to Order 7
Slide 8: Caution regarding forward-looking statements
Caution regarding forward-looking statements This presentation consists of these slides and the associated remarks and comments, which are related and intended to be presented and understood together. This presentation contains forward-looking statements which are made pursuant to the “safe harbour”
Slide 9: Notice of Meeting, Quorum, Voting Instructions
Annual Meeting Notice of Meeting Confirmation of Quorum Voting Instructions Manulife Financial Corporation The Manufacturers Life Insurance Company 9
Slide 10: Election of Directors
Annual Meeting Election of Directors Manulife Financial Corporation The Manufacturers Life Insurance Company 10
Slide 11: Election of Directors
Annual Meeting Election of Directors Manulife Financial Corporation 11
Slide 12: Nominees for Election of Directors of Manulife Financial
Annual Meeting Nominees for Election of Directors of Manulife Financial Corporation: Joseph P. Caron Tsun-yan Hsieh John M. Cassaday P. Thomas Jenkins Susan F. Dabarno Donald R. Lindsay Richard B. DeWolfe John R.V. Palmer Sheila S. Fraser C. James Prieur Donald A. Guloien And
Slide 13: Election of Directors
Annual Meeting Election of Directors The Manufacturers Life Insurance Company 13
Slide 14: Nominees for Election of Policyholders' Directors
Annual Meeting Nominees for Election of Policyholders’ Directors of The Manufacturers Life Insurance Company: Joseph P. Caron John M. Cassaday Susan F. Dabarno Richard B. DeWolfe Luther S. Helms 14
Slide 15: Nominees for Election of Shareholder's Directors
Annual Meeting Nominees for Election of Shareholder’s Directors of The Manufacturers Life Insurance Company: Sheila S. Fraser John R.V. Palmer Donald A. Guloien C. James Prieur Tsun-yan Hsieh Andrea S. Rosen P. Thomas Jenkins Lesley D. Webster Donald R. Lindsay 15
Slide 16: Appointment of the Auditors
Annual Meeting Appointment of the Auditors Manulife Financial Corporation The Manufacturers Life Insurance Company 16
Slide 17: Proposed Auditor Appointee: Ernst & Young LLP
Annual Meeting Appointment of the Auditors Manulife Financial Corporation The Manufacturers Life Insurance Company Proposed Auditor Appointee: Ernst & Young LLP, Chartered Accountants 17
Slide 18: Advisory Resolution on Executive Compensation
Annual Meeting Approval by Shareholders of the Advisory Resolution Accepting Approach to Executive Compensation Manulife Financial Corporation 18
Slide 19: Tabling of 2014 Consolidated Financial Statements
Annual Meeting Tabling of 2014 Consolidated Financial Statements and Reports of the Auditor and Actuary thereon Manulife Financial Corporation The Manufacturers Life Insurance Company 19
Slide 20: Tabling of 2014 Information for Participating Policyholders
Annual Meeting Tabling of 2014 Information for Participating Policyholders as set out in the Report to Policyholders The Manufacturers Life Insurance Company 20
Slide 21: Stephen B. Roder, Chief Financial Officer
Delivering Results Preparing for the Future Stephen B. Roder Senior Executive Vice President & Chief Financial Officer
Slide 22: Delivering strong financial results
Delivering strong financial results Shareholders’ Net Income Core Earnings1 Core Return on Equity1 (C$ millions) (C$ millions) (%) +12% +10% - 80 bps 3,501 2,617 2,888 10.6 9.8 3,130 2013 2014 2013 2014 2013 2014 Insurance Sales1,2 Wealth Sales1,2 Assets Under Management1,2 (C$ millions) (C$ billion
Slide 23: Maintaining a high degree of financial flexibility
Maintaining a high degree of financial flexibility Regulatory Capital Ratio1 Financial Leverage Ratio (%) (%) 248 248 32.9 32.7 31.0 216 211 27.8 2011 2012 2013 2014 2011 2012 2013 2014 Delivered $2.4 billion in remittances2 from operating divisions to the group in 2014 1 Refers to the Minimum Conti
Slide 24: Asia Division
Asia Division Wealth Sales1,2 Insurance Sales1,2 (US$ billions) (US$ billions) 2014 Highlights +2% +31% Record3 insurance sales 8.3 8.0 1.0 1.3 Record3 wealth sales Leading share of net cash flows in Hong 2013 2014 2013 2014 Kong’s Mandatory Provident Fund Core Earnings1 Assets Under (US$ mill
Slide 25: Canadian Division
Canadian Division Wealth Sales1 Insurance Sales1 (C$ billions) (C$ millions) 2014 Highlights -5% -49% Announced the acquisition of Standard Manulife Bank 4.1 3.2 Institutional Life’s Canadian operations, which was 964 completed on January 30, 2015 Other 8.0 8.3 411 Retail 161 167 2nd highest ann
Slide 26: U.S. Division / John Hancock
U.S. Division / John Hancock Wealth Sales1 Insurance Sales1 (US$ billions) (US$ millions) 2014 Highlights +3% -11% Announced agreement to acquire New York Life’s Retirement Plan Services 28.2 29.2 563 501 business, which was completed on April 14, 2015 2013 2014 2013 2014 Record wealth sales of
Slide 27: Global Wealth & Asset Management
Global Wealth & Asset Management Assets Under Management1 (C$ billions) 2014 Highlights +38% Achieved 25th consecutive quarter of record assets under management 691 500 531 599 Net flows1 of over $18 billion into asset management & group retirement businesses 2011 2012 2013 2014 Gross Mutual Fun
Slide 28: 1Q15 Financial Highlights
1Q15 Financial Highlights Solid financial results: Reported net income attributed to shareholders of $723 million Delivered core earnings1 of $797 million, up $78 million vs. 1Q14 Generated strong wealth sales1 of $19 billion, up 15%2 vs. 1Q14 Generated insurance sales of $779 million, up 39
Slide 29: Summary
Summary In 2014, Manulife: Generated strong net income and core earnings Achieved record wealth sales Built strong insurance sales momentum Achieved record assets under management Maintained high financial flexibility Increased the quarterly dividend Announced two highly strategic acqu
Slide 30: Donald A. Guloien, President and CEO
Delivering Results Preparing for the Future Donald A. Guloien President and Chief Executive Officer
Slide 31: We help people with their big financial decisions
We help people with their big financial decisions 31
Slide 32: Customers received over C$21 billion in benefits
21 C$ billion Customers received claims, cash surrender values, annuity payments and other benefits valued in excess of C$21 billion in 2014.
Slide 33: Net income attributed to shareholders
33 Net income attributed to shareholders C$ billions 2010 2011 2012 2013 2014 ($1.7) $0.1 $1.8 $3.1 $3.5 Net income increased in 2014.to 3.5 G$ \billion MM Manulife
Slide 34: Delivering results for shareholders
Delivering results for shareholders Total 8.7% in 2014 Shareholder Return 73.9% over two years September 2014: +19% Two June 2015: +10% Dividend Total compounded increase +31% Increases over the last 12 months: 34
Slide 35: Deploying capital
35 Deploying capital LA Publié le 03 septembre 2014 a 17h13 PRESSE Manuvie rachete les actifs canadiens de la Standard Life pour 4 milliards THE WALL STREET JOURNAL. BUSINESS Dec. 23, 2014 3:03 p.m. ET Manulife to Buy New York Life’s Retirement-Plan Services Business THE STRAITS TIMES DBS Bank inks
Slide 36: Investment operations have continued to deliver great results
Investment operations have continued to deliver great results 36
Slide 37: New disclosures on Asia and Wealth and Asset Management
New disclosures to help investors better understand two of the Company’s key drivers of growth Asia Wealth and Asset Management 37
Slide 38: Strategy
Strategy 38
Slide 39: Customer profiles are changing and that creates opportunities
Customer profiles are changing and that creates opportunities Rise of Asia Baby- Aging Fast growing Tech-savvy middle class boomers population/ youthful millennials in North Wealth population everywhere America transfer e.g. Vietnam e.g. Japan 39
Slide 40: Media and technology accelerate sharing of ideas and trends
Media and technology accelerate the sharing of ideas and trends around the world 40
Slide 41: The customer is better educated and gaining control
The customer is better educated and gaining control 41
Slide 42: Technology is enabling and disrupting industries
Technology is enabling and disrupting industries 42
Slide 43: Regulators are becoming more aggressive consumer advocates
Regulators are becoming more aggressive consumer advocates Hong Kong Singapore Securities and Futures New balanced scorecard for Commission launches mystery financial advisors will include shopping program client feedback 43
Slide 44: Customers are yearning for simplicity
Customers are yearning for simplicity Ameriprise 44
Slide 45: Competitive landscape is being redefined
Competitive landscape is being redefined Traditional Emerging Insurance companies Asset management companies Banks 45
Slide 46: Differentiation matters!
Differentiation matters! Low differentiation = High differentiation = Low return High return Name Brand Generic 46
Slide 47: Status Quo is not an option
Status Quo is not an option MM Manulife
Slide 48: Theme One
Theme One Our ability to offer insurance and wealth products, and customer- needs based solutions, will competitively differentiate Develop more holistic and long- our distribution channels. lasting customer relationships 48
Slide 49: Theme One (continued)
Theme One (continued) A. 360 degree view of the customer B. Simpler, more customer-needs focused experience C. More tools for distributors D. End-to-end customer experience, accessible anytime, anywhere Develop more holistic and long- lasting customer relationships 49
Slide 50: Theme Two
Theme Two Build and integrate our global wealth and asset management businesses. Expand our footprint. 50
Slide 51: Theme Three
Theme Three Leverage skills and experiences across our international operations 51
Slide 52: Some early examples of customer centricity in action
Some early examples of customer centricity in action Rolling out 360 degree view of the customer in most locations around the world by 2016 Launching Electronic Point of Sale capability across Asia Launched Centre for Professional Development in Asia to transform our sale and service model to
Slide 53: The old customer journey
The old customer journey Buy Life Insurance Bob, age 43 Underwriting Policy Premium Notice 53
Slide 54: The whole new customer journey
The whole new customer journey KNOW YOUR HEALTH Vitality Age: 46 Earn points for Bob, age 43, buys Initial Vitality Goal: Exercise 3X per biometrics from life insurance policy Status: Bronze week underwriting Bob receives his free Fitbit device from John Hancock. Receive email Earn points for Earn p
Slide 55: This proposition opens the door to many more conversations
A company which actively partners with A traditional life customers to help insurance company them achieve a long, healthy, happy and fulfilled life This proposition opens the door to many, many more conversations … 55
Slide 56: Success driven by employees, agents and partners
Success driven by the dedicated efforts of our employees, agents and partners 56
Slide 57: Notable retirements
Notable retirements Scott Hand Bob Cook 57
Slide 58: Thank you
Delivering Results Preparing for the Future Thank you
Slide 59: Voting Results
Annual Meeting Voting Results Manulife Financial Corporation The Manufacturers Life Insurance Company 59
Slide 60: Conclusion of Meeting
Annual Meeting Conclusion of Meeting Manulife Financial Corporation The Manufacturers Life Insurance Company 60
Slide 61: Question and Answer Period
Annual Meeting Question and Answer Period Manulife Financial Corporation The Manufacturers Life Insurance Company 61
Slide 62: Note to users - Performance and Non-GAAP Measures
Note to users - Performance and Non-GAAP Measures 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 p
Slide 63: Website citations
Website citations LAPRESSE.CA, « Manuvie rachete les actif canadiens de la Standard Life pour 4 milliards, » published September 3, 2014 http://affaires.lapresse.ca/economie/canada/201409/03/01-4796918-manuvie-rachete-les-actifs-canadiens-de-la- standard-life-pour-4-milliards.php. THE WALL STREE
Slide 64: Website citations (continued)
Website citations (continued) Khan Academy. https://www.khanacademy.org/ edX. https://www.edx.org/ Stanford Online. http://online.stanford.edu/ HarvardX. http://harvardx.harvard.edu/ Trip Advisor. http://www.tripadvisor.ca/ FutureAdvisor. https://www.futureadvisor.com/ Oriental Daily N