Sun Life Financial : Q1 2024 Earnings presentation

Q1'24 financial & operating results

For the period ended March 31, 2024

Sun Life Financial Inc. (unaudited)

In this presentation, Sun Life Financial Inc. ("SLF" or "SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "we", "us", "our", "Sun Life" and the "Company". Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS.

Forward-looking statements

Certain statements in this presentation and certain oral statements made by senior management during the earnings conference call on May 10, 2024 (collectively, this "presentation"), including, but not limited to, statements that are not historical facts, are forward-looking and are subject to inherent risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events and we cannot guarantee that any forward-looking statement will materialize. Except as may be required by law, we do not undertake any obligation to update or revise any forward-looking statements made in this presentation.

Non-IFRS financial measures

The Company prepares its financial statements in accordance with international financial reporting standards ("IFRS"). This presentation includes financial measures that are not based on IFRS ("non-IFRS financial measures"). The Company believes that these non-IFRS financial measures provide information that is useful to investors in understanding the Company's performance and facilitate the comparison of the quarterly and full year results from period to period. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed as alternatives to measures of financial performance determined in accordance with IFRS. For more information about these non-IFRS financial measures, refer to the Non-IFRS Financial Measures section on slide 20 and in our MD&A for the period ended March 31, 2024 ("Q1 2024 MD&A") in section N - Non-IFRS Financial Measures.

Drivers of earnings

Certain 2023 results in the Drivers of Earnings and Contractual Service Margin ("CSM") Movement Analysis were refined to more accurately reflect how the business is managed. Drivers of earnings is used to identify the primary sources of gains or losses in each reporting period and is not an IFRS financial measure. Additional information concerning our drivers of earnings is included in our Q1 2024 MD&A in section N - Non-IFRS Financial Measures.

Additional information

Additional information concerning forward-looking statements and non-IFRS financial measures is included at the end of this presentation.

Currency

Unless otherwise noted, all amounts are in Canadian dollars.

Rounding

Amounts in this presentation are impacted by rounding.

Sun Life - Q1 2024

2

Kevin Strain

President and Chief Executive Officer

Sun Life - Q1 2024

3

Q1 2024 financial highlights

Delivering on our Purpose to help Clients achieve lifetime financial security and live healthier lives

Executing on our ambition to be one of the best asset management and insurance companies in the world

Profitability		Financial Strength	Growth
Underlying net income1		Underlying ROE1		Assets under management1
$875 M (2)%	16.0%		$1,470 B +8%
Reported net income		Reported ROE1		Group - Health & Protection sales1
$818 M +1%	%		$528 M +4%
	15.0
Underlying EPS1		SLF Inc. LICAT ratio3		Individual - Protection sales1
$1.50 (1)%	148%		$757 M +48%
Reported EPS		Financial leverage ratio1		Diversified Business Mix4
$1.40 +2%	21.1%
	Year-to-date at March 31, 2024

New business CSM1,2	Total CSM
$347 M +50%	12.1 B +8%

• Announced 3 cent increase to quarterly common shareholder dividend

All results compared to Q1'23.

1 Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section in the appendix to these slides and Q1 2024 MD&A.

Footnotes 2-4: Refer to slide 22.

Sun Life - Q1 2024

Group - Health	Wealth & asset
& Protection
29%	management
	42%
Individual - Protection
29%

4

Progress on our Client Impact strategy

Our Purpose: Help Clients achieve lifetime

financial security and live healthier lives

Our Values: Caring, Authentic, Bold, Inspiring,

Impactful

Our Ambition: To be one of the best asset

management and insurance companies

in the world

Footnotes 1-4: Refer to slide 22.

Sun Life - Q1 2024

Improving access to care and helping Clients live healthier lives

• Strong demand for the Canadian Dental Care Plan, with 1.7 million Canadians signed up as of the end of April
• Launched our Diabetes Care Program as part of our online Lumino Health Pharmacy app in Canada, helping plan members achieve their diabetes goals
• Offering Health Navigator, a personal health care navigation and advisory service, powered by PinnacleCare, to the large employer group benefits market, helping members access the right medical diagnoses for their needs
• Became the first major group benefits provider to offer Family Leave Insurance in five U.S. states1

Accelerating growth in Asia through distribution excellence and realizing value from strategic investments

• Achieved strong individual protection sales in Hong Kong, driven by broker relationships, contribution from our bancassurance partnership with Dah Sing Bank, and momentum from agency teams
• Sold 6.3% interest of Aditya Birla Sun Life Asset Management Company ("ABSLAMC"), generating a pre-tax gain of $98 million2

Thinking and acting more like a digital company, harnessing the power of Generative AI

• Leveraging GenAI to summarize complex medical records for PinnacleCare Clients and expected to reduce turnaround time from 14 days to 1 day, unlocking greater capacity to serve more Clients
• Experimenting with a GenAI chatbot in Sun Life Global Investments that provides faster responses to complex segregated fund inquiries and is projected to generate annual productivity savings of $1 million

Embracing our responsibility to create a more sustainable future

• Made several sustainable investments, including BentallGreenOak ("BGO") completing Ontario's first all-electric net zero carbon industrial building, and lnfraRed Capital Partners acquiring a portfolio of two operating, utility-scale renewable energy assets in the U.S.3
• BGO awarded 2024 ENERGY STAR® Partner of the Year-Sustained Excellence Award for 14th consecutive year4

5

Tim Deacon

Executive Vice President & Chief Financial Officer

Sun Life - Q1 2024

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Q1 2024 results

Profitability ($ millions)	Q1'24	Q1'23	Change
Wealth & asset management	408	411	(1)%
Group - Health & Protection	280	303	(8)%
Individual - Protection	278	291	(4)%
Corporate expenses & other	(91)	(110)	+17%
Underlying net income1 ($ millions)	875	895	(2)%
Reported net income ($ millions)	818	806	+1%

Growth	Q1'24	Q1'23	Change
Net wealth sales & asset management net flows1 ($ billions)	(10.0)	(1.8)	(8.2) B
Total AUM1 ($ billions)	1,470	1,364	+8%
Group sales1 ($ millions)	528	509	+4%
Individual sales1 ($ millions)	757	511	+48%
New business CSM1,2 ($ millions)	347	232	+50%

Financial strength	Q1'24	Q4'23	Change
SLF Inc. LICAT ratio3 (%)	148	149	(1) pp
SLA LICAT ratio3,4 (%)	142	141	+1 pp
Financial leverage ratio1 (%)	21.1	21.5	(0.4) pp
Book value per share ($)	37.41	36.51	+2.5%

1 Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section in the appendix to these slides and in our Q1 2024 MD&A.

Footnotes 2-6: Refer to slide 22.

Sun Life - Q1 2024

Results Highlights

Mixed operating results; business fundamentals remain solid

• Wealth & asset management: flat y/y as higher fee income driven by higher AUM offset by higher compensation expenses and lower net seed income
• Group - Health & Protection: solid revenue growth in Canada and the U.S. more than offset by less favourable morbidity experience and lower U.S. Dental results due to Medicaid redeterminations
• Individual - Protection: business growth in Asia more than offset by the sale of Sun Life UK5
• Corporate expenses & other: includes lower financing costs

Total AUM1 up 8% due to market appreciation, partially offset by net outflows Total insurance sales up 26% y/y

• Individual sales up 48% y/y primarily from higher sales in Hong Kong
• Group sales up 4% y/y driven by large case sales in Canada, partially offset by lower U.S. Dental sales

New business CSM up 50% y/y driven by strong sales performance in Hong Kong

Strong capital position

• SLF LICAT of 148%, down one percentage point q/q, which included the impact of share buybacks
• Low financial leverage ratio of 21.1%
• $1.5 billion in holdco cash1,6

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Q1 2024 results

Underlying net income1 ($ millions)

Impact of currency translation decreased underlying net income by $4M2

AM

CAN

U.S.

ASIA

CORP

282282 310316

237

189177141

(83) (81)

 Q1'24  Q1'23
Year-over-year growth
0%	(2)%	(20)%	+26%

Constant currency2 year-over-year growth

0%

(2)%

(20)%

+27%

Reported net income ($ millions)

Impact of currency translation decreased reported net income by $2M2

AMCANU.S. ASIA CORP

329

284254	290		235
		168	134
	97

(88) (79)

+12%	(12)%	(42)%	+75%
+12%	(12)%	(42)%	+77%

1. Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section in the appendix to these slides and in our Q1 2024 MD&A.
2. Percentage changes are reported on a constant currency basis, which excludes the impacts of foreign exchange translation.

Sun Life - Q1 2024

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MFS: A global leader in public asset management

Business Group Results (US$)

Profitability	Q1'24	Q1'23	Change
Underlying net income1 ($ millions)	189	188	+1%
Reported net income ($ millions)	180	200	(10)%
Pre-tax net operating margin1,2 (%)	37.2	36.8	+0.4 pp
Total revenue ($ millions)	817	767	+7%
Expenses ($ millions)	567	519	+9%

Growth	Q1'24	Q1'23	Change
Total net flows1 ($ billions)	(8.6)	(4.3)	(4.4) B
Institutional net flows1 ($ billions)	(2.9)	(2.4)	(0.5) B
Retail net flows1 ($ billions)	(5.7)	(1.8)	(3.9) B
Total assets under management1 ($ billions)	630	570	+10%
Institutional AUM1 ($ billions)	207	190	+9%
Retail AUM1 ($ billions)	423	381	+11%
Average net assets (ANA)1 ($ billions)	609	566	+8%

Quarterly Highlights (US$)

• Underlying net income in-line with prior year as higher fee income from ANA growth was offset by higher expenses, including fair value changes in management's participation in MFS shares
• Reported net income down 10% y/y driven by the impact of fair value changes of shares owned by management
• Pre-taxnet operating profit margin of 37.2% was in-line with prior year; down 2.2 percentage points from prior quarter due to seasonal compensation expenses
• Ending AUM of $630 billion up 10% y/y reflecting market appreciation, partially offset by net outflows; up 5% q/q
• Long-termretail fund performance remains good with 97% and 53% of fund assets ranked in the top half of their respective Morningstar categories based on 10- and 5-year performance, respectively

1. Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section in the appendix to these slides and in our Q1 2024 MD&A.
2. Pre-taxgross operating margin was 33.3% in Q1 2024 and 32.8% in Q1 2023.

Sun Life - Q1 2024

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SLC Management: Growing a premier alternatives platform

Business Group Results				Quarterly Highlights
Profitability	Q1'24	Q1'23	Change	• Underlying net income in-line with prior year as fee-related earnings growth
Fee-related earnings1 ($ millions)	69	68	+1%
was offset by lower net seed investment income during Q1
Pre-taxfee-related earnings margin1,2 (%)	23.9	24.3	(0.4) pp
• Fee-related earnings up 1% y/y on higher AUM, reflecting strong capital
Pre-tax net operating margin1,2 (%)	21.8	20.6	+1.2 pp
raising and deployment, partially offset by higher expenses
Underlying net income1 ($ millions)	28	28	0%
• FRE margin flat y/y; net operating margin up one percentage point y/y
Reported net income ($ millions)	42	(17)	nm
				• Reported net income higher y/y driven by a gain on the early termination of
Growth	Q1'24	Q1'23	Change	a distribution agreement
				• Fee-earning AUM increased 4% y/y driven by continued capital deployment
Total assets under management1,3 ($ billions)	226	218	+4%
				and favourable asset value changes
Total AUM net flows1 ($ billions)	1.5	3.2	(1.7) B
Assets under administration1 ($ billions)	11.2	50.1	(78)%	• AUM not yet earning fees can generate annualized fee-related revenue of
Fee-earning AUM1 ($ billions)	179	172	+4%	more than $180 million, once invested4
Fee-earning AUM net flows1 ($ billions)	2.9	2.5	+0.4 B
AUM not yet earnings fees1 ($ billions)	21.4	20.8	+3%
Capital raising1 ($ billions)	3.5	2.3	+1.3 B
Deployment1 ($ billions)	5.6	6.0	(0.4) B

"nm" - not meaningful

1 Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section in the appendix to these slides and in our Q1 2024 MD&A.

4 This statement is a forward-looking statement within the meaning of applicable securities laws. For more information, refer to "Forward-looking Statements" and "Risk Factors" on slide 21. Footnotes 2-3: refer to slide 22.

Sun Life - Q1 2024

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