Axa Sa · EURONEXT:CS
Axa Sa — H1 2021 Earnings Presentation
36 slides from Axa Sa's earnings presentation, Aug 2, 2021
Slide 1: Half-Year Earnings 2021, August 2, 2021
August 2, 2021 iq »
Slide 2: Important Legal Information and Cautionary Statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, tr
Slide 3: Agenda
3 Halfear Earnings 2021 | August 2, 202] 1 Introduction Thomas Buberl, Group CEO 2 Business performance Frédéric de Courtois, Group Deputy CEO 3 Financial performance Alban de Mailly Nesle, Group CFO 4 Conclusion Thomas Buberl, Group CEO
Slide 4: Thomas Buberl, Group CEO
Thomas Buberl Group CEO
Slide 5: First half of 2021: Excellent performance across the Group
First half of 2021 | Excellent performance across the Group REVENUES UNDERLYING NET SOLVENCY Il EARNINGS INCOME RATIO €54bn €3.6bn €4.0bn 212% +10 Los 1420 +19 Lois 1420 +7% wane + 12% vs 1H20 ex. Covid! +3 8%); 1H20 ex. Covid? ~ 1 2pts? ° Strong growth in revenues and underlying earnings across our
Slide 6: Revenues: Strong business dynamics in business lines
6 Revenues | Strong business dynamics in business lines Half Year Earnings 2021 | August 2, 2021 vs. 1H20 +4,, +3 +12), P&C €28.1bn HEALTH €1.9bn LIFE & SAVINGS €16.9bn ASSET MANAGEMENT €0.7bn
Slide 7: Underlying earnings: Excellent performance across markets
Underlying earnings | Excellent performance across markets 1H21 vs. 1H20 ex. Covid impact! FRANCE / EUROPE +7 % €2.4bn ASIA +6» €0.7bn €3.6bn +40. €0.6bn +101% vs 1H20 AXAIM +12 vs 1H20 ex. Covid impact! +32” €0.2bn 7 HalfYear Earnings 2021 | August 2, 2021 All notes are on pages 34, 35 & 36 ofthis
Slide 8: AXA XL: Delivering, with confident outlook
AXA XL | Delivering, with confident outlook Underlying earnings In Euro billion +40% —y \) ~ 0.6 STRONG CONTINUED PRICING os UNDERWRITING MOMENTUM? : PERFORMANCE +15% Insurance CoR 95.8% +10% Reinsurance PORTFOLIO FAVORABLE RE-UNDERWRITING RESERVES REVIEW WELL ADVANCED Excess reserves at €0.4bn 1H20
Slide 9: Strategy: Continued simplification and innovation
9 Strategy | Continued simplification and innovation @ 7 Finalization of the sale of our operations in Greece Announcement of the sale of our operations in Malaysia Half Year Earnings 2021 | August 2, 2021 1 Europe: AXA and Microsoft collaborate to create a digital healthcare platform France: Launch
Slide 10: Strategy: Strengthening of our climate commitments
Strategy | Strengthening of our climate commitments LAUNCH OF THE PUBLICATION CHAIR OF THE AXA FOR PROGRESS OF OUR 2021 NET-ZERO INSURANCE INDEX CLIMATE REPORT ALLIANCE * 7shared Group “Warming potential” Action plan roll-out commitments at 2.7°C, below the market’s at COP26 + 3 targets impacting (3
Slide 11: Strategy: On track with our Driving Progress 2023 plan
Strategy | On track with our Driving Progress 2023 plan UNDERLYING +7 0 * Grow our health and protection businesses EARNINGS Ye (0) PER SHARE (ex. Covid)! ° Simplify the customer experience and continue to improve efficiency * Strengthen underwriting performance * Sustained leadership in climate cha
Slide 12: Business performance, Frédéric de Courtois
Business perf Frédéric de Courtois Group Deputy CEO
Slide 13: P&C Revenues: Favorable pricing momentum in Commercial lines
P&C Revenues | Favorable pricing momentum in Commercial lines Gross revenues Commercial lines pricing!: +7% In Euro billion +49 4% 7Y +11% 28.1 28.1 +3% +3% AXA XL France Europe Commercial +6% Personal lines pricing?: stable +1% +1% Personal +1% -3% 1H20 1H21 France Europe Asia & Int'l 13 Half Year
Slide 14: P&C Profitability: Strong underwriting performance
P&C Profitability | Strong underwriting performance Underlying earnings Combined ratio In Euro billion +323% or +13% ex Covid! in 1H20 +0.4 101.7% a a 2.2 +15 EE Or —_ 95.1% 7 -0.2 ex Covidt 7 93.3% Underwriting Investment Tax, FX " result income and other 4.1% 91.4% Hi covid-19" 0.5 Hi Nat Cat Non-
Slide 15: P&C Combined ratio: Strong technical profitability across geographies
P&C Combined ratio | Strong technical profitability across geographies AXA XL France Europe ; 73.9pts +0.2pt p 70. a 99.7% 91.4% : 8% 89.6% 89.7% 1H20 (ex. Covid)! 1H21 1H20 (ex. Covid)! 1H21 1H20 (ex. Covid)! 1H21 15 Half Year Earnings 2021 | August 2, 2021 All notes are on pages 34, 35 & 36 ofthis
Slide 16: L&S Revenues: Growing across markets, with high quality mix
L&S Revenues | Growing across markets, with high quality mix Gross revenues In Euro billion +129 [_ 12% —- 16.9 15.6 Protection +4% Unit-Linked +35% Capital Light! G/A +19% Traditional G/A 4% 1H20 16 Half Year Earnings 2021 | August 2, 2021 1H21 Revenues by geography In Euro billion +20% +2% 7.6 aa"
Slide 17: L&S - APE and NBV: Growing our highly profitable product mix
L&S - APE and NBV | Growing our highly profitable product mix APE NBV NBV margin In Euro billion In Euro billion +9% | U +15% 5 +2.5pts 2.8 NBV margin 1.4 45.8% 46.8% 1.3 Protection +4% 56% and Health? an 41% Unit-Linked +35% Capital Light? G/A +28% 28% Traditional G/A -8% 12% 1H20 1H21 1H20 1H21 1H
Slide 18: L&S profitability: Higher technical margin, resilient investment margin
L&S profitability | Higher technical margin, resilient investment margin Underlying earnings In Euro million 1H20 Technical Investment General margin margin expenses 18 Half Year Earnings 2021 | August 2, 2021 Taxes, Forex & other! 1,240 1H21 * Higher technical margin from business growth and the no
Slide 19: Health: Continued profitable growth
Health | Continued profitable growth Gross revenues Combined ratio Underlying earnings In Euro billion In Euro million [ +3% | ; +0.2pt 7 | +5% | 7.9 7.9 94.0% 94.4% 388 386 - Stable | 1H20 1H21 1H20 1H21 1H20 1H21 19 Half Year Earnings 2021 | August 2, 2021
Slide 20: Asset management: Higher AUM with favorable business mix
Asset management | Higher AUM with favorable business mix Average AUM In Euro billion Vs +15% [i _ Alts +9% Core i; +5% 20 Half Year Earnings 2021 | August 2, 2021 Net inflows by platform In Euro billion +8.9 +5.5 +3.6 — me Alts Core JVs Net inflows by client In Euro billion +9.4 +8.9 Third party Ma
Slide 21: Asset management: Earnings growth from margin expansion
Asset management | Earnings growth from margin expansion Gross revenues Cost income ratio Underlying earnings In Euro million In Euro million +17% al | -3.6pts | +32% | a 71.0% 170 67.3% 606 130 1H20 1H21 1H20 1H21 1H20 1H21 21 HalfYear Earnings 2021 | August 2, 2021
Slide 22: Financial performance, Alban de Mailly Nesle
Financial p arfo | Alban de Mailly Neste) ~ » Group CFO
Slide 23: Underlying earnings: Strong 1H21 performance
Underlying earnings | Strong 1H21 performance In Euro million In Euro million +12% +101% | (ex. Covid) 3,643 1H20 1H21 Change Property &Casualt 544 2,209 — +323% 713% perty y 4 ° (ex. Covid)? Life & Savings 1,165 1,240 +10% 1,885 Health 388 386 +5% Asset Management 130 170 +32% Holding & other 341 -
Slide 24: Net income: Strong growth from UE and favorable market conditions
Net income | Strong growth from UE and favorable market conditions In Euro million +191% | 3,996 1,429 1H20 1H21 24 Half Year Earnings 2021 | August 2, 2021 In Euro million Gains/losseson financial assets +547 o/w Net realized capital gains +257 o/w Change in fair value and Forex! +290 Exceptional a
Slide 25: Shareholders' equity: High ROE at 16.6%
Shareholders’ equity | High ROE at 16.6% In Euro billion In Euro billion 71.6 68.4 FY20 Shareholders' equity 71.6 Changein net unrealized capital gains AT Netincome forthe period +4.0 Dividend (paid in May 2021) 3.4 Change in pension benefits +0.5 Forex and other +0 FY20 1H21 5 derl 1H21 Shareholder
Slide 26: Solvency II ratio: Very strong at 212%
Solvency II ratio | Very strong at 212% 1H21: Solvency! ratio roll-forward FY20 Solvency II ratio 200% Operating return +12 pts Dividend accrual -6 pts Market impact excl. Forex +3 pts Debt issuance +4 pts Forex and Other -0 pt 1H21 Solvency II ratio 212% 26 Half Year Earnings 2021 | August 2, 2021
Slide 27: Investments: Yields supported by Alternatives, resilient L&S margin
Investments | Yields supported by Alternatives, resilient L&S margin 1H21 Fixed Income P&C yieleP L&S investment margin reinvestment yield 0, 0, 2.3% 2.8% 2.6% 69bps 69bps 1.3% 0.9% Core Alternative! 1H21 1H20 1H21 1H20 1H21 Government bonds Average rating: AA Corporate bonds Average rating: A 10-20
Slide 28: Debt gearing within guidance and strong credit ratings
Debt gearing within guidance and strong credit ratings Debt gearing Rating Outlook 27.6% —— S&P Global Ratings March, 2021 AA- Stable Moobpy’s June, 2021 Aa3 Stable FitchRatings —May2021 AA- Positive (revised from stable) FY20 1H21 28 Half Year Earnings 2021 | August 2, 2021
Slide 29: Conclusion
Conclusion. Thomas Buberl Group CEO -
Slide 30: Excellent performance across the Group
Excellent performance across the Group 4 Strong growth in revenues and underlying earnings across our geographies and business lines 4 Rebound in P&C profitability, notably at AXA XL, after a year impacted by Covid-19 A Continued strategic actions to simplify the Group and innovate in healthcare 4 C
Slide 31: Q&A session
Slide 32: AXA is a recognized sustainability leader
AXA is a recognized sustainability leader MSCI "=: > Score: AAA Member of Dow Jones Sustainability Indices Powered by the S&P-Global CSA 2020: 2"4 place Score: 88/100 Included in DJSI Europe & DJSI World indices DJSI accounts for 10% of AXA’s performance shares for top management 32 Half Year Earnin
Slide 33: Perimeter
Perimeter France: includes insurance activities, banking activities and holdings in France. Europe: includes Switzerland (insurance activities), Germany (insurance activities, holding, and banking activities until its disposal on December 31, 2020), Belgium (insurance activities and holdings), Unite
Slide 34: Notes (1/3)
Notes (1/3) Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified, Page5 1 “Covid-19 claims in 1H20” includes P&C, L&S and Health net claims related to Covid-19 in 1H20, as well as the impacts fro
Slide 35: Notes (2/3)
Notes (2/3) Page 14 P&C Covid-19 claims in 1H20” includes P&C net claims related to Covid-19 in 1H20, as well as the P&C impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19 in 1H20. “P&C Covid-19 claimsin 1H20” does not include any financial market impacts inc
Slide 36: Notes (3/3)
Notes (3/3) Page 24 1. Includes the change in fair value of interest rate, equity and foreign exchange economic hedges not eligible for hedge accounting under IAS 39. Page 25 1. Includes impact of change in fair value of derivatives that qualify to be booked through other comprehensive income Euro -