Slide 1: FY19 Earnings
FY19 Earnings February 20, 2020
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: Table of contents
Table of contents 1. FY19 highlights A.04 Thomas Buberl, Group CEO 2. FY19 Financial performance A.12 Etienne Bouas-Laurent, Group CFO A3 Full Year 2019 Earnings | February 20, 2020
Slide 4: FY19 highlights
FY19 Earnings February 20, 2020 FY19 highlights 1 Thomas Buberl, Group CEO
Slide 5: Key financial highlights – Full Year 2019
Key financial highlights – Full Year 2019 ▶ +5% revenues to Euro 104 billion, with growth across the board ▶ +5% UEPS growth, notably reflecting a strong technical result 1 ▶ +5 points Solvency II ratio to 198%, exit from EQH and lower gearing 2 3 ▶ +7% growth in dividend to 1.43 Euro per share A5 F
Slide 6: +5% in revenues to Euro 104 billion with growth across the board
+5% in revenues to Euro 104 billion with growth across the board Across preferred segments P&C Health Protection All other Commercial lines (32% of revenues 1) (14% of revenues 1) (16% of revenues 1) (38% of revenues1) Euro 104 billion +7% +6% +4% +4% FY19 Gross revenues And across all geographies +
Slide 7: Sustained earnings and dividend per share growth
Sustained earnings and dividend per share growth Underlying earnings Adjusted earnings Dividend per share per share per share +5% +6% +7% 2.48 2.59 2.76 1.43 2.61 1.34 FY18 FY19 FY18 FY19 FY18 FY19 o/w +2% from Forex Payout ratio1 52.2% 52.4% A7 Full Year 2019 Earnings | February 20, 2020 Changes on
Slide 8: We executed on our priorities and strengthened our balance sheet in 2019
We executed on our priorities and strengthened our balance sheet in 2019 Full exit of Reducing Strengthening Equitable Holdings Debt Gearing2 Solvency II Economic ownership 1 +5 pts 32% 198% 51% 29% 193% 0% January December FY18 FY19 FY18 FY19 25% - 28% target Does not rely on USD 5.7 billion On tra
Slide 9: Update on AXA XL
Update on AXA XL ▶ Strong topline growth in 2019: +10% gross revenues Contribution from revenue synergies and hardening cycle with strong and accelerating price increases in 2019 and into 2020 ▶ Adequate reserves at AXA XL: Euro 0.8 billion unallocated excess reserves at FY19 Impact of social inflat
Slide 10: 2019 achievements towards Ambition 2020 Focus and Transform
2019 achievements towards AXA’s Ambition 2020 Focus and Transform Growth: across all preferred segments, increased presence in China (AXA Tianping) Focus Simplification: AXA Bank Belgium, Poland, Czech Republic and Slovakia Strong balance sheet: resilient Solvency II and reduced gearing From L&S (EQ
Slide 11: We are fully on track to deliver on our four main Ambition 2020 targets
We are fully on track to deliver on our four main Ambition 2020 targets Underlying earnings per share1 Free cash flows2 In Euro billion +5% 25 Ambition 2020 Ambition 2020 3% - 7% 28 – 32 2015 – 2019 CAGR CAGR Cumulative 2016 – 2019 Cumulative 2016 – 2020E Adjusted return on equity1 Solvency II ratio
Slide 12: FY19 Financial performance
FY19 Earnings February 20, 2020 FY19 Financial performance 2 Etienne Bouas-Laurent, Group CFO
Slide 13: Earnings by geography, line of business, net income, balance sheet
Earnings by geography Earnings by line of business Net income Balance sheet A13 Full Year 2019 Earnings | February 20, 2020
Slide 14: Underlying earnings
Underlying earnings In Euro million Underlying earnings1 Underlying earnings by geography +2% FY18 FY19 Change 6,451 6,182 France 1,573 1,715 +9% Europe 2,496 2,544 +1% Asia & International 1,503 1,670 +6% 2 AXA XL -233 507 - Mainly United States 1,125 444 - higher financial Transversal & Central Ho
Slide 15: France | Gross revenues and underlying earnings
France | Gross revenues and underlying earnings In Euro billion Net flows across preferred segments +4% In Euro billion ▶ P&C stable +1.4 25.2 26.2 Gross ▶ Health +6% +0.7 +0.6 revenues +0.2 ▶ L&S +5% Protection Health Unit- G/A FY18 FY19 Linked Savings +9% 1.7 ▶ P&C +24% 1.6 P&C Health L&S investme
Slide 16: Europe | Gross revenues and underlying earnings
Europe | Gross revenues and underlying earnings In Euro billion +4% UK Germany Italy 36.5 34.4 ▶ P&C +3% P&C Health L&S ▶ Health +4% +4% +4% +17% Gross price and new positive price Unit-Linked and revenues business in Motor effect G/A Savings ▶ L&S +6% FY18 FY19 +1% 2.5 2.5 ▶ P&C +10% P&C Health Lif
Slide 17: Asia & International | Gross revenues and underlying earnings
Asia & International | Gross revenues and underlying earnings In Euro billion +5% Turkey Mexico Hong Kong 15.5 16.9 ▶ P&C +5% P&C Health Protection ▶ Health +8% +18% +16% +10% Gross from both Personal new large growth in revenues and Commercial accounts broker and agency ▶ L&S +3% FY18 FY19 +6% 1.5
Slide 18: AXA XL | Gross revenues and underlying earnings
AXA XL | Gross revenues and underlying earnings FY19 results impacted by Nat … and a favorable Reducing risk and Cat and social inflation… pricing momentum earnings volatility in 2020 Euro 507million +10% FY19 Underlying earnings FY19 Gross revenues ▶ Reduction in Property Cat exposure ▶ Above norma
Slide 19: Earnings by geography, line of business, net income, balance sheet
Earnings by geography Earnings by line of business Net income Balance sheet A19 Full Year 2019 Earnings | February 20, 2020
Slide 20: Underlying earnings
Underlying earnings In Euro million Underlying earnings Underlying earnings by business lines +2% FY18 FY19 Change 6,451 6,182 Property & Casualty 2,207 3,341 +12% Life & Savings 3,479 2,870 -1% Health 630 699 +5% Other local Asset management 541 390 -3% holdings, and higher Banking & Holdings -675
Slide 21: Property & Casualty | Underlying earnings
+5% Property & Casualty | Underlying earnings revenues In Euro million Underlying earnings Lower combined ratio… Or -1.1 pts +12% excl. AXA XL -0.6 pt 99.1% 97.0% 98.7% 3,341 4.2% 96.4% -2.1% 4.0% -2.2% ▶y 2,207 Current All year Current All year year year FY18 FY19 Natural Catastrophe Prior year res
Slide 22: Life & Savings | Underlying earnings
+5% Life & Savings | Underlying earnings revenues In Euro million Underlying earnings Investment margin -1% 3,479 ▶ Higher investment margin (+2%) +2 bps lower investment yields more than offset by 2,870 lower crediting rates 66 bps 68 bps lower reserves (Swiss Group Life transformation) ▶ Lower tec
Slide 23: Health | Underlying earnings
+6% Health | Underlying earnings revenues In Euro million Underlying earnings Gross revenues +5% +5% 699 7,132 7,568 630 Individual ▶ Higher revenues (+6%) with growth across the board FY18 FY19 ▶ Slightly higher combined ratio +7% +0.1 pt to 94.1% as a lower expense 5,924 6,432 ratio was more than
Slide 24: Asset management | Underlying earnings
-2% Asset management | Underlying earnings revenues In Euro million Underlying earnings AXA IM Alternatives AUM -3% Euro 137 billion (+13%) 541 Real Assets: #1 in Europe, #5 worldwide 1 AXA IM underlying earnings (-3% to Euro 264 million): AB 390 ▶ Higher Assets Under Management to Euro 801 billion
Slide 25: Earnings by geography, line of business, net income, balance sheet
Earnings by geography Earnings by lines of business Net income Balance sheet A25 Full Year 2019 Earnings | February 20, 2020
Slide 26: Net income
Net income In Euro million +75% Details of FY19 net income 3,857 Underlying earnings 6,451 Net realized capital gains 393 1 -791 Mainly disposals of Change in fair value & forex AXA Bank Belgium 2,140 and ALE3, and EQH Exceptional and discontinued operations -1,634 deconsolidation Integration and re
Slide 27: Earnings by geography, line of business, net income, balance sheet
Earnings by geography Earnings by line of business Net income Balance sheet A27 Full Year 2019 Earnings | February 20, 2020
Slide 28: Shareholders' equity and adjusted ROE
Shareholders’ equity and adjusted ROE In Euro billion FY18 Shareholders' equity 62.4 69.9 62.4 Change in net unrealized capital gains +7.7 Net income for the period +3.9 Dividends -3.2 Change in pension benefits -0.7 Forex and other -0.2 FY18 FY19 FY19 Shareholders' equity 69.9 Adjusted 14.4% 16.0%
Slide 29: Solvency II ratio: +5 points to 198%
Solvency II ratio: +5 points to 198% 2019: solvency II ratio 1 roll-forward Key sensitivities Ratio as of December 31, 2019 198% FY18 Solvency II ratio 193% Interest rate +50bps +8 pts Interest rate -50bps -12 pts Operating return +22 pts Corporate spreads +50bps -3 pts Equity markets +25% +5 pts Di
Slide 30: Prudence in IFRS reserves
Prudence in IFRS reserves Excess of IFRS reserves AXA XL excess of IFRS reserves IFRS reserves in excess of undiscounted SII BEL In Euro billion in Euro billion 1.5 6.8 ACSA AXA XL excess reserves excess 5.2 of Euro 0.8 billion -0.6 0.8 XL PGAAP AXA (excl. XL) Risk margin excess reserves of Euro 6.0
Slide 31: Cash, financial debt and gearing
Cash, financial debt and gearing Cash at holding Gross financial debt In Euro billion o/w -1.8 debt repaid o/w -3.3 mainly from Main drivers of FY19 evolution 24.2 EQH deconsolidation 3.0 19.1 Cash remittance +5.6 o/w +0.7 from one-offs Dividend paid in 2019 -3.2 FY18 FY19 1.7 Holding costs and inte
Slide 32: Q&A
FY19 Earnings February 20, 2020 Q&A
Slide 33: AXA Investor Relations | Keep in touch
AXA Investor Relations | Keep in touch Meet our management Call us Investor Relations +33 1 40 75 48 42 March 17-18 Morgan Stanley European Financials Conference London Andrew Wallace-Barnett +33 1 40 75 46 85 Head of Investor Relations March 31 HSBC West Coast Financials Conference San Francisco Fr
Slide 34: Thank You
FY19 Earnings February 20, 2020 Thank You
Slide 35: Scope
Scope ▪ France: includes insurance activities, banking activities and holdings in France. ▪ Europe: includes Belgium (insurance activitie s and holding), Italy (insurance activities), Ge rmany (insurance activities excluding AXA Art, including banking activities and holdings), Spain (insurance activ
Slide 36: Notes (1/3)
Notes (1/3) Page A5 1. Underlying earnings per share is an APM. For further information, please refer to the reconciliation of these non-GAAPfinancial measures to the financial statements and to its definition in the Glossary, which are provided in AXA’s 2019 Activity Report (respectively, on pages
Slide 37: Notes (2/3)
Notes (2/3) Page A11 1. Underlying earnings per share and Adjusted Return on Equity are APMs. For further information, please refer to the reconciliation of these non-GAAP financial measures to the financial statements and to their definitions in the Glossary, which are provided in AXA’s 2019 Activi
Slide 38: Notes (3/3)
Notes (3/3) Page A29 1. The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXA Group’s SFCR as of December 31, 2018, available on AXA’s websit