Slide 1: Full Year 2017 Earnings Press Conference
Full Year 2017 Earnings Press Conference February 22, 2018
Slide 2: Important Legal Information and Cautionary Statements Concerning Forward-Looking Statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or objectives. Un
Slide 3: Agenda
Agenda 1. Introduction 2. Business performance 3. Summary of earnings & Financial strength 4. Concluding remarks 3 Full Year 2017 Earnings | February 22, 2018
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO
Slide 5: Excellent performance in 2017
Excellent performance in 2017 €98.5 bn €6.0 bn €6.2 bn 205% €1.26 Gross revenues Underlying earnings1 Net income Solvency II Ratio Dividend Stable +7% +8% +8pts +9% Underlying earnings and net income All geographies contributed The Group accelerates towards crossed the Euro 6 billion mark for to gro
Slide 6: All geographies contributing to growth in earnings
All geographies1 contributing to growth in earnings Underlying Earnings earnings growth (in Euro billion) France 1.4 +3% Market leader focused on profitability Accelerating in preferred segments supported by distribution strength Europe 2.3 +2% European Leader in P&C and Health Strong profitability
Slide 7: Strong growth in key segments
Strong growth in key segments P&C Health Unit-Linked Commercial lines +2% +6% +7% Revenues Revenues APE FY17 vs. FY16 FY17 vs. FY16 FY17 vs. FY16 7 Full Year 2017 Earnings | February 22, 2018
Slide 8: Ambition 2020 | Delivering on the upper end of the target range
Ambition 2020 | Delivering on the upper end of the target range Underlying earnings Free Adjusted return Solvency II per share cash flows on equity2 ratio3 +7% €6.3bn 14.5% 205% FY17 vs. FY16 FY17 FY17 FY17 ! ! ! ! 3% - 7% €28-32bn 12% - 14% 170% - 230% UEPS CAGR1 2015-2020 Cumulative 2015-2020 Targ
Slide 9: 2017 | A year of important choices
2017 | A year of important choices Change Reaffirm Simplify the Group's risk profile the strategic role the organization with the IPO of of our activities in to be closer to our US operations asset management the customer 9 Full Year 2017 Earnings | February 22, 2018
Slide 10: Ambitions | Be the preferred partner to our customers with innovative health services
Ambitions | Be the preferred partner to our customers with innovative health services Deployment of telemedecine Accelerating on our Payer to Partner strategy 10 million beneficiaries Better health choices at a lower cost An immediate solution in 70% of cases Over 1 million lives covered 10 Full Yea
Slide 11: Ambitions | Be the #1 partner to the platform economy
Ambitions | Be the #1 partner to the platform economy Partnerships with more than 150 platforms … … in more than 20 countries Serving customers in over 100 million life moments 11 Full Year 2017 Earnings | February 22, 2018
Slide 12: Ambitions | Continue to be a leader in the fight against climate change
Ambitions | Continue to be a leader in the fight against climate change 3 billion Euros €12 additional divestments from carbon-intensive energy producers bn Green investments by 2020 The Group stops insuring new coal, oil sands and associated pipelines business 12 Full Year 2017 Earnings | February
Slide 13: Business performance
2 Business performance
Slide 14: Jacques de Peretti
Jacques de Peretti Chairman & CEO of AXA France
Slide 15: France | Solid results, key objectives achieved
France | Solid results, key objectives achieved Underlying earnings Underlying earnings Revenues In Euro million By activity (pre-tax) +3% +4% +6% +13% +1% 45% Total Protection Unit-Linked P&C P&C & Health Commercial 1,429 Excluding a significant contract lines in Q4 2016 16% L&S L&S +8% Unit-Linked
Slide 16: France | Simplify the lives of our clients
France | Simplify the lives of our clients Move from a payer Innovate in Be an to a partner for our clients « new territories » engaged company Medical teleconsultation New economy Prevention Home autoservices Cyber risk Community building 24/7 Access International support Diversity 16 Full Year 201
Slide 17: Gérald Harlin
Gérald Harlin Deputy CEO & Group CFO
Slide 18: Europe | Strong technical results and growth in preferred segments
Europe | Strong technical results and growth in preferred segments Underlying earnings Profitability Revenues In Euro million +2% -23% G/A Savings 2,305 2,326 94.6% P&C -1% +30% Italy (-0.5 pt) Combined ratio Spain Unit-Linked UK & Ireland Higher technical margin +3% in Germany and Belgium P&C Comme
Slide 19: Asia | Strong profitability in highly competitive markets
Asia | Strong profitability in highly competitive markets Underlying earnings Profitability Revenues In Euro million +7% 1,089 -6% 1,047 97.6% P&C +1% Japan Combined ratio (-0.2 pt) +2% Lower pension costs Hong Kong Japan in Japan Economic +9% revenues High Potentials Improved morbidity in Japan 78.
Slide 20: United States | Growth with an improved product mix
United States | Growth with an improved product mix Underlying earnings Life & Savings Asset Management In Euro million +16% 1,135 998 +14% NBV €0.4bn Increase in management €12bn Net inflows o/w €10 billion in Retail fee bps and lower cost income ratio at AB +6% APE US Life €1.8bn Higher Unit-Linke
Slide 21: International | Building for growth and managing for profits
International | Building for growth and managing for profits Underlying earnings Profitability Revenues In Euro million +20% 101.4% +6% 337 (+0.2 pt) o/w +1.5 pts P&C Combined ratio +2% Excluding Turkey 288 Nat Cat Higher investment income and improved technical margin in Turkey 101.6% Health Combin
Slide 22: AXA IM | Strong growth in underlying earnings
AXA IM | Strong growth in underlying earnings Underlying earnings Volumes Cost income ratio In Euro million +16% 257 €8bn Net inflows o/w €9 billion in third party -1.6 225 pts Higher management fees Improved cost income ratio Assets under €746bn 72.4% Improved mix from Asian JVs management 70.8% At
Slide 23: Summary of earnings & Financial strength
3 Summary of earnings & Financial strength
Slide 24: Group | Topline overview
Group | Topline overview Life & Savings APE Health Revenues P&C Revenues (excluding health) In Euro million In Euro million In Euro million -1% +6% +1% 31,887 31,763 5,772 5,607 12,403 11,958 Protection 2,122 -4% +2% 15,113 2,057 Commercial 15,125 Lines G/A Savings 1,438 -7% 1,269 + 7% 1,631 Persona
Slide 25: Group results
Group results Underlying earnings Adjusted earnings1 Net income In Euro million In Euro million In Euro million +8% +8% Total Group 6,457 €6bn 6,209 +7% Underlying earnings growth per share FY17 vs. FY16 +7% FY17 FY17 25 Full Year 2017 Earnings | February 22, 2018
Slide 26: Main financial strength indicators
Main financial strength indicators Shareholders’ equity Solvency II ratio Financial strength ratings In Euro million 205% AA- 70.6 69.6 197% stable Aa3 stable AA- FY16 FY17 FY16 FY17 stable 26 Full Year 2017 Earnings | February 22, 2018
Slide 27: General Account invested assets
General Account invested assets Allocation of invested assets New fixed income investments (General Account insurance invested assets) 2017 ~27% 4% 35% ~8% Government bonds Cash Below Investment and related Corporate bonds Average rating: AA Grade credit* 3% Listed equities ~9% 6% €575bn 3% Asset-Ba
Slide 28: Dividend
Dividend Dividend Distribution rate In euro per share +9 % 1.26 49% 1.16 Payout ratio guidance: 45-55% of adjusted earnings 2016 2017 28 Full Year 2017 Earnings | February 22, 2018
Slide 29: Conclusion
4 Conclusion Thomas Buberl Group CEO
Slide 30: Concluding remarks
Concluding remarks Excellent performance in 2017 Underlying earnings and net income crossed the Euro 6 billion mark for the first time in the company’s history All geographies contributed to growth in earnings The Group accelerates towards the objectives of Ambition 2020 30 Full Year 2017 Earnings |
Slide 31: Q&A Session
Q&A Session
Slide 32: Socially Responsible Investment Ratings
Socially Responsible Investment Ratings 2016 Sector Leader, Ranked “A+” in the 2017 General score: A- ranked 1st out of 37 “Assessment Report” Score level: « Leadership » Included in Vigeo Euronext (Responsible Investment strategy) indices General score: 87/100 2017: 2nd in sector Included in the (S
Slide 33: Notes
Notes Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified. Page 5 1. Underlying earnings is a non-GAAP financial measure. For further information, please refer to the reconciliation of underlyin