Equitable Holdings, Inc. · NYSE:EQH
Equitable — Investor Day (May 2023)
84 slides from Equitable's investor day presentation, May 10, 2023
Slide 1: Equitable's Next Chapter
Equitable’s Next Chapter Investor Day | May 10, 2023
Slide 2: Note Regarding Forward-Looking and Non-GAAP Financial Measures
Note Regarding Forward-Looking and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estima
Slide 3: May 10th Investor Day Agenda
May 10th Investor Day Agenda Section Presenters Duration Intro & welcome video Isil Müderrisoğlu, Head of Investor Relations 5 min Company Overview & Strategy Mark Pearson, President and Chief Executive Officer of Equitable Holdings 25 min Retirement Nick Lane, President of Equitable 15 min Asset Ma
Slide 4: Equitable's Next Chapter
Equitable’s Next Chapter Investor Day | May 10, 2023
Slide 5: Our mission
Our mission to help our clients secure their financial well-being so they can pursue long and fulfilling lives
Slide 6: Unique and integrated businesses across advice, retirement and asset management
Unique and integrated businesses across advice, retirement and asset management Proven track record of execution and business simplification, even through volatile times Attractive market opportunity for advice and solutions Competitive strengths in investments, risk management and broad distributio
Slide 7: Integrated advice, retirement and asset management
Integrated advice, retirement and asset management 100% owned 61% owned 100% owned Retirement Asset Management Wealth Management All weather product portfolio Leading active manager Holistic advice platform to meet the varying retirement with global distribution footprint providing insurance needs o
Slide 8: Track record of consistent execution
Track record of consistent execution Executing against all targets Delivering strong business performance1 8-10% Non-GAAP operating earnings per share growth $80bn Retirement gross premiums c.8% annual growth $6.5bn Capital returned, consistently delivering on payout target $67bn Asset Management ac
Slide 9: Improved quality of earnings and grew cash flows
Improved quality of earnings and grew cash flows Growing cash flows Reducing risk Cash flows to Holding Company Assets required in worst 2% market scenarios Measured by CTE 98 Legacy VA significantly reduced since IPO +31% -72% $100m annual cash $1.6bn $14bn flows accelerated $20bn in ▪ $22bn accoun
Slide 10: Business performance supports strong shareholder returns
Business performance supports strong shareholder returns Strong performance for equity investors Driven by 2x shareholder value Total shareholder return from IPO-YE’22 FCF per share to shareholders 59% +120% $3.53 41% 38% $1.60 EQH Life Peers1 S&P 500 2017 2022 1Arithmetic average includes AMP, BHF,
Slide 11: Resilience and consistency even in volatile times
Resilience and consistency even in volatile times 10yr UST S&P 500 2018 2019 2020 2021 2022 Combined RBC Ratio 440% 510% 410% 450% 425% Capital Return ($bn) $0.8 $1.2 $1.1 $1.8 $1.3 11 RETIREMENT
Slide 12: Conservative balance sheet and strong financial ratings
Conservative balance sheet and strong financial ratings Healthy capital ratios & liquidity Conservative GA portfolio Strong financial ratings as of 3/31/23, unless otherwise noted as of 3/31/23 as of 3/31/23 Alts & Other Equities Other 4% 425% Corporates 6% 7% U.S. Treasuries A1 Combined RBC ratio a
Slide 13: Bridging profit and purpose
Bridging profit and purpose since 2017 since 2014 signed in 2019 since 2015 13 RETIREMENT
Slide 14: Opportunities in our chosen markets
Opportunities in our chosen markets Favorable demographics Global active investable assets to grow Regulation promoting healthier industry Number of US retirees1 AUM by product +62% c.5% • Fair value accounting (LDTI) 89m CAGR $117trn $92trn • NAIC economic scenario Active Core generator interest ra
Slide 15: Strategy
Strategy Competitive edges how we will drive long-term value what sets us apart Defend & grow core businesses premier investment capabilities • Retirement capture greater margins through AB • Asset Management and Equitable’s investment services Our mission risk management Scale adjacent businesses t
Slide 16: Strategy Key growth initiatives
Strategy Key growth initiatives how we will drive long-term value execute by focusing on: Defend & grow core businesses 1. Core Retirement • Retirement • Capital-light product innovation • Asset Management • Differentiated distribution Our mission 2. Core Asset Management Scale adjacent businesses •
Slide 17: Strategy Key growth initiatives
Strategy Key growth initiatives how we will drive long-term value execute by focusing on: Defend & grow core businesses 1. Private Markets • Retirement • Scale with broad solution set and • Asset Management strong track record • Further $10bn capital Ourmission Our Scale adjacent businesses commitme
Slide 18: Strategy Key growth initiatives
Strategy Key growth initiatives how we will drive long-term value execute by focusing on: Defend & grow core businesses • Retirement • Asset Management 1. Higher growth markets in Asset Management Our mission • China and EMEA Scale adjacent businesses to help our clients 2. Insurance asset managemen
Slide 19: Strategy Key initiatives
Strategy Key initiatives how we will drive long-term value execute by focusing on: Defend & grow core businesses • Retirement • Asset Management 1. Invest in our people Our mission • Enhance performance by Scale adjacent businesses attracting & retaining our talent to help our clients • Private Mark
Slide 20: Our mission
Our mission to help our clients secure their financial well-being so they can pursue long and fulfilling lives
Slide 21: Key financial goals to 2027
Key financial goals to 2027 Cash generation Payout ratio EPS growth $2bn 60-70% 12-15% of annual cash of Non-GAAP Non-GAAP operating generation by 2027 operating earnings EPS CAGR through 2027 New strategic targets support growth $110m $150m $10bn +350-500bps Incremental GA income Productivity savin
Slide 22: Performance culture: Management Team
Performance culture: Management Team Mark Pearson Seth Bernstein Kate Burke Onur Erzan José Ramón González President and CEO of President and CEO of Chief Operating Officer and Chief Head of Global Client Group and Chief Legal Officer and Corporate Equitable Holdings AllianceBernstein Financial Offi
Slide 23: Performance culture: EQH Board of Directors
Performance culture: EQH Board of Directors Joan Lamm-Tennant Mark Pearson Francis Hondal Arlene Isaacs-Lowe Daniel G. Kaye Chair President and CEO of Equitable Holdings Craig MacKay Bertram L. Scott George Stansfield Charles G.T. Stonehill 23 RETIREMENT
Slide 24: Retirement
Retirement Nick Lane President Equitable
Slide 25: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Market opportunity: leading retirement provider well-positioned to meet growing client demand 2 Track record: history of delivering innovative solutions to targeted client segments 3 Privileged distribution: industry-leadi
Slide 26: Market opportunity
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity There are existing and unmet needs for retirement solutions Aging population with enhanced longevity Changing consumer expectations and unmet needs 75 million 90% of advisors report an increase in client expectations
Slide 27: Market opportunity
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity Our Retirement offering addresses three core needs Accumulate Protect Transfer Retirement offering Tax-advantaged growth Protected equity & income Leaving legacy for family Investment RILAs ✓ ✓ Individual Retirement
Slide 28: Market opportunity
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity Upside in current markets with opportunity in adjacent markets Equitable’s addressable market size expansion Annual sales1 $250-300bn opportunity Workplace solutions Providing health solutions to small businesses Ins
Slide 29: Track record
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Track record We have leading positions with outperformance in markets with strategic moats Leading positions Strategic Moats Relative performance 3-Year CAGR Industry Equitable Individual #1 RILA • Targeted market with five core RILA c
Slide 30: Track record
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Track record Client-focused innovation tapping new markets across life stages Career starters Builders Pre-Retirees Next Chapters Life Legacies Deep grasp of client needs based Age <35 Age 35-52 Age 53-64 Age 65-79 Age >80 on life stag
Slide 31: Track record
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Track record Leader in emerging institutional 401(k) in-plan guarantee market Total 401(k) 401(k) in-plan guarantees $10trn AUM 20% of target date fund flows Total 401(k) Emerging • Employers seeking to improve DC plans to ensure stabl
Slide 32: Privileged distribution
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Privileged distribution Differentiated distribution model enables us to access market opportunity Affiliated distribution Third-party distribution 4,100 • Focus on channels with high 14,000 • Enhanced persistency c. • Stable source of
Slide 33: Privileged distribution
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Privileged distribution High-barrier third-party distribution channels in Individual Retirement market % of Equitable % of Industry VA players1 Rank Sales Sales Banks 32% <5 #1 15% Regional Agency 12% <5 (including P&C) #3 70% Independ
Slide 34: Attractive business mix
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Attractive business mix Current products have robust margins and narrow range of outcomes Robust margins Narrow range of outcomes Spread Yield on general account assets with low • SCS ALM matched and repriced every two weeks based cost
Slide 35: Attractive business mix
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Attractive business mix We primarily make money through fee and spread based earnings Retirement Offering Account Value1 Spread Fee UW Guarantees Investment RILAs $37bn ✓ Individual Retirement VA with income solutions $30bn ✓ Fully h
Slide 36: Guidance
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 5 Guidance Our Retirement business provides resilient and growing cash flows Robust inforce block Strong new business margins Retirement AUM (includes AV & reserves) Retirement VNB Value of new 5-7% 5-7% business (VNB): CAGR c.$190bn CAG
Slide 37: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Market opportunity: leading retirement provider well-positioned to meet growing client demand 2 Track record: history of delivering innovative solutions to targeted client segments 3 Privileged distribution: industry-leadi
Slide 38: Asset Management
Asset Management Seth Bernstein Chief Executive Officer AllianceBernstein
Slide 39: We are a leading active manager with premier investment capabilities
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS We are a leading active manager with premier investment capabilities Institutional & Retail Distribution Footprint 50+ 371 years of experience in Investment investment management professionals Zurich London Stockholm $676 billion Minneap
Slide 40: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Market opportunity: global active investible assets are expected to grow c.30% by 2027 2 Globally diversified business model: we are well-positioned in high-growth market segments 3 Structured to outperform: track record o
Slide 41: Global active investable assets are expected to grow c.30% by 2027
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity Global active investable assets are expected to grow c.30% by 2027 AUM by Product AUM by Geography AUM by Client Segment c.5% CAGR $117trn c.5% c.5% CAGR CAGR $92trn Europe Active Core Institutions N. America Solutio
Slide 42: Globally diversified business model
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Globally diversified business model Our platform generates and leverages competitive advantages Sustained organic growth through market cycles Driven by strong long-term investment track records Total active AUM annualized organic grow
Slide 43: Structured to outperform
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Structured to outperform Organic growth has driven improved financial results Organic Growth Mix Shift to Higher Value Assets Adjusted Operating Margins 5-yr average AOG for Active AUM Active Equities & Private Alts. as % of revenues T
Slide 44: Growth strategy
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth strategy We are investing in markets that will drive future growth Private Debt Insurance AUM ($trn) 5-year projected growth AUM ($trn) 5-year projected growth Products / Segments 1.3 10 – 12% 36.0 5 – 8% Active ETFs U.S. Retail
Slide 45: Growth strategy: Private Markets
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth strategy: Private Markets We aspire to grow AUM to $90-100bn over the next five years Private Markets AUM $90bn - $100bn AB CarVal acquisition results in $58bn1 Private Markets platform +10-12% • Private Credit: Middle Markets,
Slide 46: Growth strategy: Private Markets
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth strategy: Private Markets Leveraging Equitable’s commitments to grow third-party capital +10-12% CAGR $90-100bn third-party $56bn +14% CAGR $32bn $13bn $5bn commitment in 2014, fully funded1 $10bn commitment in July 2021, c.70%
Slide 47: Looking forward, multiple levers to drive margin expansion
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 5 Guidance Looking forward, we have multiple levers to drive margin expansion Path to 350-500bps of adjusted operating margin expansion by 2027 Range 1 Bernstein Research Services deconsolidation1 +200 - 250bps 2 Full realization of Nash
Slide 48: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Market opportunity: global active investible assets are expected to grow c.30% by 2027 2 Globally diversified business model: we are well-positioned in high-growth market segments 3 Structured to outperform: track record o
Slide 49: Wealth Management
Wealth Management Nick Lane President Equitable
Slide 50: Key Messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key Messages 1 Market opportunity: growing market with heightened demand for advice 2 Distinct approach: captures growing Retirement and fee-based advisory assets 3 Strong track record: consistent growth in AUM, net flows and advisor pro
Slide 51: Consumers are increasingly seeking holistic advice
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity Consumers are increasingly seeking holistic advice Americans are seeking advisors to help with their needs With heightened demand for holistic advice 65% 50% of Investors say the value of personalized c. advice has i
Slide 52: Equitable Advisors is targeting the $12trn mass-affluent market
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Market opportunity Equitable Advisors is targeting the $12trn mass-affluent market Mass Middle Mass-Affluent Affluent High Wealth Ultra-High Market Market Market Market Market Wealth Market Investable <$100k $100k-500k $500k-2m $2m-5m
Slide 53: Leading wealth management platform
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Distinct approach Leading wealth management platform Equitable Advisors’ key metrics Equitable Advisors’ core differentiators 4,100 Advisors $188bn Total Client Assets • Track-record of recruiting and developing advisors Average age 47
Slide 54: Strong track record
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Strong track record Track record of growth in net flows and improved mix towards advisory Strong investment & Retirement sales Growing investment net inflows Driving advisory AUA growth Industry growth over span: 6%1 +7% $22.9bn +9% $4
Slide 55: Distinctive model that develops advisors and attracts clients
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth drivers Distinctive model that develops advisors and attracts clients People Advice Planning Process Platform Over 4,100 Equitable advisors: Integrated Equitable advice model Operating platform that drives retirement • 2,300+ ge
Slide 56: Generate revenue across three value streams
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth drivers Generate revenue across three value streams Revenue is generated from sales of commission-based Retirement and investment products: • Retirement product distribution fees are margin-neutral as economics are captured Dist
Slide 57: Strong momentum with three key drivers of growth
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Growth drivers Strong momentum with three key drivers of growth 5-year annual growth rate Our opportunity • Increase advisor productivity by 2x to meet the average Advisor +10% productivity of top wealth management firms productivity P
Slide 58: Delivering 15% operating earnings growth through 2027
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 5 Guidance Delivering 15% operating earnings growth through 2027 15% c.$200m+ CAGR Productivity Margin $101m 4-5% 8-12% 2027F 2022 Free cash flow conversion of c.90% 58 RETIREMENT
Slide 59: Key Messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key Messages 1 Market opportunity: growing market with heightened demand for advice 2 Distinct approach: captures growing Retirement and fee-based advisory assets 3 Strong track record: consistent growth in AUM, net flows and advisor pro
Slide 60: Financials, Investments & Capital
Financials, Investments & Capital Robin M. Raju Chief Financial Officer Equitable Holdings
Slide 61: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Economic balance sheet: resilient through market cycles due to fair value framework 2 Strong execution: delivering on efficiency, yield enhancements and growth to create value 3 Capital optimization: strong cash flows and
Slide 62: Economic balance sheet
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Economic balance sheet Consistent RBC ratio and capital return across markets while reducing risk 10yr UST S&P 500 2018 2019 2020 2021 2022 Combined RBC Ratio 440% 510% 410% 450% 425% CTE98 Reserves ($bn) $14.7 $12.3 $14.4 $1.7 $4.0 Ca
Slide 63: Industry reforms and advocacy efforts moving closer to fair value
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Economic balance sheet Industry reforms and advocacy efforts moving closer to fair value Economic model distinguishes Equitable from peers With accounting and regulation moving closer to EQH Fair value assets and derivatives; • FASB Fa
Slide 64: Strong ratings supported by economic risk management
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Economic balance sheet Leading to strong ratings supported by economic risk management Strong capital ratios and financial ratings With diverse sources of liquidity As of 3/31/23, unless otherwise noted As of 3/31/23 425% Combined RBC
Slide 65: Conservative and resilient investment portfolio, supported by AB
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 1 Economic balance sheet With a conservative and resilient investment portfolio, supported by AB Diversified and high-quality general account portfolio As of 3/31/23 General account portfolio Fixed maturity portfolio Alts & Other Equitie
Slide 66: General account optimization delivering $110m annual incremental income
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Strong execution General account optimization delivering $110m annual incremental income Cumulative incremental annual income Driven by strategic priorities over the last five years Phase 1 Phase 2 Phase 3 Phase 1 • Reallocated UST to
Slide 67: Capital commitment to AB driving higher multiple growth
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Strong execution With capital commitment to AB driving higher multiple growth Seed investments in AB Contributing to enhanced yield in GA Driving higher multiple growth at AB Cumulative AB private markets seed investment Incremental an
Slide 68: Productivity initiatives delivering $150m annual net savings by 2027
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 2 Strong execution Productivity initiatives delivering $150m annual net savings by 2027 Cumulative annual productivity savings Operating model with track record of driving efficiency Phase 1 Phase 2 Phase 1 • Driving technology enablemen
Slide 69: We have optimized capital to drive future growth and secure cash flows
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Capital optimization We have optimized capital to drive future growth and secure cash flows We are investing in future growth While de-risking and driving cash flow consistency Drives Private Markets to $58bn1 AUM $1bn reserve financin
Slide 70: Legacy VA will be less than 5% of 2027 earnings
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Capital optimization Legacy VA will be less than 5% of 2027 earnings Legacy is rapidly shrinking Capital backing Legacy will release Legacy operating earnings CTE 98 assets backing businesses Reducing Legacy exposure $2-3bn of annual r
Slide 71: Delivering record value of new business in Retirement and Wealth Management
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Capital optimization Delivering record value of new business in Retirement and Wealth Management Capital allocation drives future cash flows Value of new business: Present value of future profits from new business $600m Capital diversi
Slide 72: Positioning us to grow cash flows to Holdings by 50%
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Capital optimization Positioning us to grow cash flows to Holdings by 50% Expect to increase cash flows 50% by 2027 $2.0bn $1.3bn 2023F Retirement Legacy capital release Asset Management Wealth Management 2027F 72 RETIREMENT
Slide 73: More resilient cash flows through different environments
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 3 Capital optimization With more resilient cash flows through different environments Annual cash flow generation to the HoldCo Base case: 6% equity return & 2% dividend yield, $2.0bn 10-year UST follows forward curve Severe downturn: -25
Slide 74: Today our relative value suggests upside for investors
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Shareholder opportunity Today our relative value suggests upside for investors Price-to-earnings Price-to-free cash flow Non-GAAP operating earnings1 Cash flow generation1 Legacy (2x) Wealth Mgmt (11x) Asset Mgmt for 10% 7% Retirement
Slide 75: While our capital allocation generates consistent accretion
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 4 Shareholder opportunity While our capital allocation generates consistent accretion Strong earnings growth Consistent cash generation $2.0bn $2.5bn Enables $2.0bn $1.3bn 60-70% payout ratio of Non-GAAP operating earnings 2022 2027F 202
Slide 76: Non-GAAP operating EPS 12-15% growth
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 5 Guidance Non-GAAP operating EPS 12-15% growth driven by organic growth and capital return 12-15% CAGR Organic Growth Share Repurchases $4.97 4-5% 8-10% Strong organic growth Higher cash flow conversion drives increased earnings drives
Slide 77: Looking ahead, our priorities remain unchanged
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS 5 Guidance Looking ahead, our priorities remain unchanged Economic Profitable Capital return to Optimize balance sheet business growth shareholders capital structure Financial flexibility & 15%+ IRR on new Bias towards buybacks Capital &
Slide 78: Key financial goals to 2027
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key financial goals to 2027 Cash generation Payout ratio EPS growth $2bn 60-70% 12-15% of annual cash of Non-GAAP Non-GAAP operating generation by 2027 operating earnings EPS CAGR through 2027 New strategic targets support growth $110m $
Slide 79: Key messages
RETIREMENT • ASSET MANAGEMENT • WEALTH MANAGEMENT • FINANCIALS Key messages 1 Economic balance sheet: resilient through market cycles due to fair value framework 2 Strong execution: delivering on efficiency, yield enhancements and growth to create value 3 Capital optimization: strong cash flows and
Slide 80: Appendix
Appendix Equitable Holdings Investor Day May 10, 2023
Slide 81: Financial guidance
Appendix Financial guidance $1.3bn dividends and distributions from subsidiaries to HoldCo in 2023 Cash generation $2.0bn of annual cash generation by 2027 Payout ratio guidance 60-70% of Non-GAAP operating earnings Long-term EPS growth guidance 12-15% compound annual growth rate through 2027 Genera
Slide 82: ESG at Equitable: Drive business value through a deliberate ESG strategy
Appendix ESG at Equitable: Drive business value through a deliberate ESG strategy Investing in our people Caring for the environment Building stronger communities Upholding stakeholder trust Enhance enterprise Integrate sustainable practices Foster mobility and Deliver trusted products and performan
Slide 83: ESG at Equitable: Leverage our big systems to deliver outcomes
Appendix ESG at Equitable: Leverage our big systems to deliver outcomes Investing in our people Caring for the environment Building stronger communities Upholding stakeholder trust Enhance enterprise Integrate sustainable practices Foster mobility and Deliver trusted products and performance by attr
Slide 84: ESG Operating Model: Rigor and controls to ensure long-term impact
Appendix ESG Operating Model: Rigor and controls to ensure long-term impact • Experienced and diverse Board of Directors Governance and oversight • Dedicated Board committee for oversight of ESG strategy • ESG Steering Committee comprised of senior leaders to ensure accountability • Reported under S