Exhibit (c)(2) PRESENTATION TO LIBERTY FINANCIAL COMPANIES, INC. BOARD OF DIRECTORS MAY 2, 2001 1 DISCUSSION OUTLINE - Review of Annuities Segment Transaction - Asset Management - Next Steps REVIEW OF ANNUITIES SEGMENT TRANSACTION 2 ANNUITIES SEGMENT TRANSACTION - Sun Life will acquire Annuities segment for $1.702 billion - Based on an equity value of $1.702 billion, this implies multiples of: 2000A Net Operating Income 13.4x 2001P(1) Net Operating Income 12.1x 12/31/00 Book Value (ex. FAS 115) 1.32x (1) Based on management projections. 3 SUMMARY VALUATION ANALYSIS - ANNUITIES SEGMENT OVERALL VALUATION ANALYSIS SUGGESTS AN EQUITY REFERENCE RANGE OF $1.5 BILLION - $2.0 BILLION ($ in millions) - ------------------------------------------------------------------------------------------ Comparable Company Valuation Without Control Premium $1,250 - $1,450 With Control Premium 1,550 - 1,850 Comparable Acquisitions Valuation 1,400 - 2,000 M&R Actuarial Analysis(1) 1,500 - 2,000 - ------------------------------------------------------------------------------------------ EQUITY REFERENCE RANGE $1,500 - $2,000 - ------------------------------------------------------------------------------------------ SUN LIFE'S EQUITY VALUE PROPOSAL $1,702 - ------------------------------------------------------------------------------------------ (1) Actuarial appraisal prepared by Milliman & Robertson, Inc. 4 COMPARABLE PUBLIC COMPANIES ANALYSIS METHODOLOGY - Analyzed Equity Value to Net Operating Income and Book Value for companies with similar business to Annuities segment - Applied relevant multiples to segment's historical and projected data to estimate unaffected price range for the Segment - Added representative control premium 5 COMPARABLE PUBLIC COMPANIES SUMMARY COMPARABLE PUBLIC COMPANIES VALUATION ANALYSIS SUGGESTS AN EQUITY VALUE RANGE OF $1.55 BILLION TO $1.85 BILLION. ANNUITIES SEGMENT ($ in millions) COMPANY DATA RELEVANT MULTIPLE RANGE IMPLIED EQUITY VALUE RANGE - ----------------------------------------------------------------------------------------------------------------------------------- 2000A Net Operating Income $127 9.6x - 11.1x $1,217 - $1,407 2001P(1) Net Operating Income 140 8.5 - 11.1 1,187 - 1,550 12/31/00 Book Value (excl. FAS 115) 1,286 1.11 - 1.64 1,428 - 2,109 - ----------------------------------------------------------------------------------------------------------------------------------- INDICATED EQUITY REFERENCE RANGE $1,250 - $1,450 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- INDICATED VALUE WITH CONTROL PREMIUM 15% $1,438 - $1,668 25% 1,563 - 1,813 35% 1,688 - 1,958 - ----------------------------------------------------------------------------------------------------------------------------------- EQUITY REFERENCE RANGE WITH CONTROL PREMIUM $1,550 - $1,850 - ----------------------------------------------------------------------------------------------------------------------------------- (1) Based on management projections. 6 COMPARABLE PUBLIC COMPANIES ANALYSIS EQUITY VALUE TO: MARKET ----------------------------------------------------------------- CAP. (MM) `00 EPS `01E EPS BOOK VALUE(1) - ----------------------------------------------------------------------------------------------------------------------------------- American Annuity Group $ 721 9.6x 8.5x 1.16x American General 20,141 16.8 15.1 2.58 AmerUs 939 11.2 10.3 1.11 Lincoln National 8,706 12.4 12.3 1.75 Nationwide Financial 5,270 11.7 11.1 1.95 - ----------------------------------------------------------------------------------------------------------------------------------- High 16.8x 15.1x 2.58x Mean 12.3 11.4 1.71 Median 11.7 11.1 1.75 Low 9.6 8.5 1.11 - ----------------------------------------------------------------------------------------------------------------------------------- (1) Excluding FAS 115. 7 COMPARABLE ACQUISITIONS ANALYSIS METHODOLOGY - Analyzed comparable acquisitions of businesses in the annuities and life industries of more than $1 billion - Calculated aggregate transaction value and implied multiples of selected financial data - Applied relevant multiples to segment's historical data to estimate an implied acquisition price range for the segment 8 COMPARABLE ACQUISITIONS VALUATION COMPARABLE ACQUISITIONS VALUATION ANALYSIS SUGGESTS A VALUE RANGE OF $1.4 BILLION TO $2.0 BILLION. ANNUITIES SEGMENT ($ in millions) COMPANY RELEVANT IMPLIED EQUITY DATA MULTIPLE RANGE VALUE RANGE - ------------------------------------------------------------------------------------------------------------------------------------ 2000A Net Operating Income $127 10.1x - 18.0x $1,280 - $2,281 12/31/00 Book Value (ex. FAS 115) 1,286 1.10 - 1.70 1,415 - 2,186 - ------------------------------------------------------------------------------------------------------------------------------------ INDICATED EQUITY REFERENCE RANGE $1,400 - $2,000 - ------------------------------------------------------------------------------------------------------------------------------------ 9 COMPARABLE ANNUITY ACQUISITIONS (MORE THAN $1 BILLION) ($ in millions) ---------------------------------- EQUITY VALUE TO: TRANSACTION ---------------------------------- BUYER TARGET DATE VALUE BV NOI - ------------------------------------------------------------------------------------------------------------------------------ General Electric Capital First Colony Corporation Aug-96 $2,037 1.40x 14.0x Aegon NV Providian Corp. Dec-96 6,026 1.10 10.1 ING Group Equitable of Iowa Jul-97 2,600 2.60 18.8 Lincoln National Cigna (Annuity Business) Jul-97 1,400 3.00 19.0 American General Western National Sep-97 2,253 1.97 18.2 American International Group SunAmerica Inc. Aug-98 19,674 6.51 34.6 --------------------------------------------------------------------------------------------- High 6.51x 34.6 x Mean 2.76 19.1 Median 2.28 18.5 Low 1.10 10.1 --------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- 10 COMPARABLE LIFE ACQUISITIONS (MORE THAN $1 BILLION) EQUITY VALUE TO: TRANSACTION ---------------------------- BUYER TARGET DATE VALUE BV NOI - ----------------------------------------------------------------------------------------------------------------------------------- Aegon NV Transamerica Corp. Feb-99 $10,800 1.70x 21.5x Allstate American Heritage Life Jul-99 1,145 3.95 28.9 Metropolitan Life Insurance Co. GenAmerica Corp. Aug-99 1,541 0.92 10.6 ING Groep NV ReliaStar Financial Corp Apr-00 6,145 2.34 20.0 Hartford Financial Services Fortis Financial Group Jan-01 1,320 2.50 22.7 -------------------------------------------------------------------------------------------------- High 3.95x 28.9x Mean 2.28 20.7 Median 2.34 21.5 Low 0.92 10.6 -------------------------------------------------------------------------------------------------- COMPOSITE STATISTICS -------------------------------------------------------------------------------------------------- High 6.51x 34.6x Mean 2.54 19.8 Median 2.34 19.0 Low 0.92 10.1 -------------------------------------------------------------------------------------------------- 11 M&R ACTUARIAL APPRAISAL SUMMARY ACTUARIAL APPRAISAL VALUATION ANALYSIS SUGGESTS A VALUE RANGE OF $1.5 BILLION TO $2.0 BILLION ANNUITIES SEGMENT (DOLLARS IN MILLIONS) IMPLIED EQUITY VALUE RANGE - ------------------------------------------------------------------------------------------------------ M&R Appraisal at September 30, 2000 $1,526 - $2,397 M&R Estimate as of June 30, 2001 1,687 - 2,644 - ------------------------------------------------------------------------------------------------------ REFERENCE RANGE $1,500 - $2,000 - ------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------ 12 M&R ACTUARIAL APPRAISAL OF KEYPORT LIFE INSURANCE COMPANY SUMMARY OF ACTUARIAL APPRAISAL - ESTIMATES OF VALUE ($ in millions) DISCOUNT RATE -------------------------------------------------------- COMPONENT OF VALUE 9.0% 11.0% 13.0% - ------------------------------------------------------------------------------------ ------------------ ----------------- Adjusted Statutory Book Value as of Sept. 30, 2000 $987.8 $987.8 $987.8 ESTIMATED VALUE AS OF SEPTEMBER 30, 2000: INFORCE BUSINESS After-Tax Existing Business 829.5 755.7 693.8 Cost of Capital (200% RBC) (136.6) (189.6) (234.9) ---------- ----------- ---------------- Subtotal After Cost of Capital 692.9 566.1 458.9 FUTURE BUSINESS After-Tax Future Business 1,007.2 710.1 494.4 Cost of Capital (200% RBC) (290.7) (367.1) (415.0) ---------- ----------- ---------------- Subtotal After Cost of Capital 716.5 343.0 79.4 Total Value In-force and Future Business $2,397.3 $1,896.9 $1,526.2 ESTIMATED VALUE AS OF JUNE 30, 2001: Total Value In-force and Future Business After-Tax $2,644.0 $2,094.0 $1,686.8 - ------------------------------------------------------------------------------------------------------------------------ SOURCE: Milliman & Robertson, Inc. 13 ANNUITIES SEGMENT TRANSACTION OTHER MAJOR TERMS: - 338 (h) (10) Election - Assumption of all material liabilities associated with the business - Includes Special Retention and Severance Plan for segment's employees - Excludes restricted stock and stock option liabilities - Transition Services Agreement to be entered into by Liberty Financial - Break-up fee of 5% (approximately $85 million) 14 CSFB'S OPINION SUN LIFE'S PURCHASE PRICE FOR THE ANNUITIES SEGMENT IS FAIR, AS OF THE DATE HEREOF, TO LIBERTY FINANCIAL COMPANIES FROM A FINANCIAL POINT OF VIEW ASSET MANAGEMENT 15 ASSET MANAGEMENT BUSINESS - - Withdrawal of First Union has resulted in no immediate acquiror for Asset Management business - - CSFB believes that a successful remarketing of the business can be accomplished - Certain potential asset management acquirors were occupied with other activities in late 2000 - Certain potential asset management acquirors may have been skeptical that a separate sale of the asset management business would be possible - - CSFB has had contact with 61 potential buyers: - 26 U.S. and Canadian Institutions - 28 European - 7 Rest of world - - Given Asset Management Q1 results, expected value is likely to be lower than First Union's proposal 16 SALE OF ASSET MANAGEMENT BUSINESS - - Results in Q1 are 30% below management plan - - $7.9BN reduction to AUM in Q4 2000 and Q1 2001 from market action REVISED ($ in millions) 2001P Q1 2001 PRELIMINARY 2000A(1) AT 9/30/00 Q1 2001A ANNUALIZED 2001P ----------------------------------------------------------------------------------------------------------------- Revenues $383.9 $460.8 $105.6 $422.4 $416 - $433 Operating Expenses(2) (261.3) (297.3) (76.6) (306.4) (295) EBITDA 79.7 122.1 17.0 68.0 73 - 90 AUM $51.8BN $60.9BN $48.9 BN NA NA ----------------------------------------------------------------------------------------------------------------- (1) Includes Wanger for 3 months (2) Excludes amortization of deferred distribution costs and depreciation expense. Source: LFC Management NEXT STEPS 17 NEXT STEPS - - Continue marketing Asset Management business - - Determine final buyer for Asset Management business - - Depending upon transaction structures, assess disposition of proceeds to common stockholders and bondholders - - Close transactions