Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Merger or Acquisition (December 2017)
18 slides from Voya Financial's merger presentation, Dec 21, 2017
Slide 1: Positioned for Leadership – Sale of CBVA & Annuities
Voya Financial Positioned for Leadership – Sale of CBVA & Annuities December 21, 2017
Slide 2: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements This presentation and the remarks made orally contain forward-looking statements. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not i
Slide 3: Landmark Transaction Opens the Next Chapter for Growth
Landmark Transaction Opens the Next Chapter for Growth Eliminate CBVA tail risk and volatility Significantly Less tied to interest rate and insurance risks Reduce Risk Lower cost of equity Focus enterprise on high growth, high return, capital-light Focus on Growth businesses Become a faste
Slide 4: Transaction Overview
Transaction Overview Divested CBVA and Annuities businesses through a legal entity sale of Voya Insurance and Annuity Company (VIAC) Transaction Summary CBVA acquired by Venerable, sponsored by affiliates of Apollo Global Management, Crestview Partners, and Reverence Capital Partners, together w
Slide 5: Reduced Exposure to Market & Insurance Risks
Reduced Exposure to Market & Insurance Risks Risk Category Exposure Reduction Businesses for Overall Voya to be Divested Interest Rate Meaningful CBVA & Annuities Market Equity Moderate CBVA Credit Moderate Annuities Lapse Meaningful CBVA & Annuities Insurance Benefit Utilization Meaningful CBVA & A
Slide 6: Leading Retirement, Investment, and Benefits Franchise
Leading Retirement, Investment, and Benefits Franchise 1 Focus on high growth, high return, capital-light businesses 2 High free cash flow generation with strong balance sheet 3 Diverse management team with a track record of driving growth and rapid improvement in financial results 6
Slide 7: Focus on high growth, high return, capital-light businesses
Focus on high growth, high return, capital-light businesses Pro Forma Operating Earnings Key Business Strengths Retirement: Leading provider of comprehensive retirement solutions, with ability to leverage size and scale − Top three market position in Small Ind. Life 19% Over 80% of Corporate, K-12
Slide 8: Investments in Businesses Have Yielded Significant Growth and Profitability since IPO
Investments in Businesses Have Yielded Significant Growth and Profitability since IPO Retirement Investment Management Employee Benefits AUM ($bn) $135 IM Sourced AUM ($bn) In-Force Premium ($mm) $83 $1,873 High Growth $90 $1,287 $54 2012 3Q'17 2012 3Q'17 2012 3Q'17 ROC Operating Margin ROC 10% 34%
Slide 9: High Free Cash Flow Generation with Strong Balance Sheet
High Free Cash Flow Generation with Strong Balance Sheet Free Cash Flow $600 - $700mm annual free cash flow1 Generation Accelerate utilization of existing $1bn share repurchase authorization by June 30, 2018 Capital Deployable capital from transaction intended for additional share repurchases
Slide 10: Executed Significant Improvement Across Many Metrics
Executed Significant Improvement Across Many Metrics 2012 LTM 3Q’17 Enhanced Ongoing 8.3% +720bps 15.5% Business ROE1 Strong EPS $2.81 +39% $3.90 Growth2 Excess Capital - Cumulative $3.4bn Returned Moody’s A3 A2 Strength of S&P A- Upgrades A Balance Fitch A- A Sheet3 CBVA AUM $43bn $35bn (To Be Dive
Slide 11: Clear Path to EPS Growth
Clear Path to EPS Growth Target Quarterly Operating EPS within 12 Months of Closing $0.10 - $0.12 $0.10 - $0.12 ($0.21) ($0.10) - ($0.12) $110-$130mm Consolidate IT platforms annual $0.99 Migrate to cloud $1.10 - $1.20 environment $110-130mm annual Streamline operations through process digit
Slide 12: Leading Retirement, Investment, and Benefits Franchise
Leading Retirement, Investment, and Benefits Franchise 1 Focus on high growth, high return, capital-light businesses 2 High free cash flow generation with strong balance sheet 3 Diverse management team with a track record of driving growth and rapid improvement in financial results 12
Slide 13: Appendix
Appendix PLAN | INVEST | PROTECT
Slide 14: Retirement – Leading Franchise Driving Long-Term Growth and Returns
Retirement – Leading Franchise Driving Long-Term Growth and Returns Leader Across Key Segments Key Initiatives Segment Sales / Deposits Assets Focus on customer retirement outcomes by encouraging greater employee participation, Small Corporate1 #3 #5 raising participant savings rates, and optimizi
Slide 15: Investment Management – Continued Strong Performance Across Broad Capabilities
Investment Management – Continued Strong Performance Across Broad Capabilities Key Statistics ($bn)¹ Key Initiatives Investment Management Sourced Third- Support high growth market segments with Party Net Flows (TTM) $5.8 additional sales resources Investment Management Sourced AUM as of Improve
Slide 16: Employee Benefits – High Return and Capital Generation Business
Employee Benefits – High Return and Capital Generation Business Key Rankings Key Initiatives Improve block performance in Stop Loss to ensure Stop Loss Based on Annualized profitable growth Premium #4 Improve customer and distributor experience and lower unit costs by simplifying operations Supp
Slide 17: Continuing to Deliver on Operating Initiatives – 2017 and Beyond
Continuing to Deliver on Operating Initiatives – 2017 and Beyond 1Q’17 2Q’17 3Q’17 2017 Growth Metrics1 Commentary Scorecard Scorecard Scorecard Small/Mid Corporate: Deposits +5% to • 3Q’17: +14% y-o-y +10% • YTD’17: +31% y-o-y Retirement • 3Q’17: -8% y-o-y Tax-Exempt: Deposits 0% to +5%
Slide 18: Transaction Structure
Transaction Structure Transaction Overview Cede Structure accomplishes transfer of Annuities Apollo, substantially all of CBVA to Venerable, and Segment Voya Athene Crestview, Annuities to Athene 3 Reverence Apollo, Crestview, and Reverence, together 1 with Athene and Voya, will establish Cede V
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