Slide 1: AXA 2016 Half Year Earnings Press Conference
AXA 2016 HALF YEAR EARNINGS Press Conference Paris - August 3, 2016
Slide 2: Forward-looking statements
Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and
Slide 3: AXA at a glance in the first half of 2016
AXA at a glance in the first half of 2016 Regions 54 22% EURO BN France revenues1 15% United 3% States United Kingdom & Ireland 103 MILLION 7% clients2 3% Insurance Mediterranean & Direct Underlying Latin America Region 3.1 3% Earnings5 10% EURO BN International Insurance Asia excl. Japan Underlying
Slide 4: Agenda
Agenda 4. ASSET MANAGEMENT 1. INTRODUCTION 5. EARNINGS SNAPSHOT & 2. LIFE & SAVINGS AND HEALTH FINANCIAL STRENGTH 3. PROPERTY & CASUALTY 6. CONCLUDING REMARKS 4 | AXA |Half Year 2016 Earnings | August 3, 2016
Slide 5: Introduction
1 Introduction Thomas Buberl Deputy CEO1 1 Thomas Buberl will become CEO of AXA as of September 1st , 2016.
Slide 6: In the first half of 2016, resilient earnings despite headwinds
In the first half of 2016, resilient earnings despite headwinds € 3.1bn RESILIENT EARNINGS Underlying Earnings stable1 SELECTIVE AND PROFITABLE GROWTH € 3.2 bn CONFIRMED FINANCIAL STRENGTH IN A LOW Net Income INTEREST RATE +4%1 ENVIRONMENT 197 % WELL SUITED AMBITION 2020 STRATEGIC PLAN Solve
Slide 7: Profitable and selective growth
Profitable and selective growth Strong profitability of new business sales 37.3% € 3.3 bn Life & Savings and Health New Business Margin New Business Sales (APE) Profitable business and growing revenues 96.0% +3.7% 1 Property & Casualty Combined ratio Revenues Strong net inflows Asset Management € 19
Slide 8: Confirmed financial strength in a low interest rate environment
Confirmed financial strength in a low interest rate environment Strong Solvency II ratio1 Resilience to market movements 230% 200% 197% Target Ratio as of June 30, 2016 197% range 170% Interest rate : +50 bps 202% Interest rate : -50 bps 192% Corporate spreads : +75% 196% Equity markets : +25% 200%
Slide 9: Ambition 2020
Ambition 2020 FOCUS TRANSFORM Selective growth New customer experience Efficiency and margins From Payer to Partner Capital and cash Adapt capabilities 9 | AXA |Half Year 2016 Earnings | August 3, 2016
Slide 10: With Ambition 2020: our growth levers
With Ambition 2020: our growth levers What is in our hands: 8% Underlying earnings per share (UEPS) CAGR1 Interest 1% 3% - 7% rate 2% headwind 2% + 3% = -5%, -1% Efficiency Growth Technical M&A 2015 - 2020E margin UEPS CAGR1 All notes are on page 34 of this document 10 | AXA |Half Year 2016 Earnings
Slide 11: Ambition 2020: key objectives
Ambition 2020: key objectives Underlying earnings per share Group operating free cash-flows 3-7% € 28-32 bn CAGR1 2015-2020E cumulative 2016E-2020E Adjusted return on equity2 Solvency II ratio 12% - 14% 170% - 230% 2016E-2020E Target range All notes are on page 34 of this document 11 | AXA |Half Yea
Slide 12: 2016 Half Year Earnings
2016 Half Year Earnings Gérald Harlin Chief Financial Officer
Slide 13: In the first half of 2016, AXA stood by its million clients
In the first half of 2016, AXA stood by its 103 million clients € 6 billion benefits paid to Protection & Health 1.5 million customers benefited from health customers assistance services € 6 billion in compensations paid to our individual € 4 billion in compensations paid to our customers after a Pr
Slide 14: Life & Savings and Health
/ 2 Life & Savingsand Health
Slide 15: New business sales (APE) by activity
New business sales (APE) by activity Slight decrease in new business, strong net flows Protection Unit-Linked G/A Savings Mutual Funds & Health & Other +6% -1% -18% -21% +22% +64% -21% -30% comp. reported comp. reported comp. reported comp. reported 1,343 1,326 1,187 939 of which capital light Savin
Slide 16: Focus on Health
Focus on Health Growing and profitable business Global footprint Growth and high profitability (Includes Health reported in both Life & Savings and Property & Casualty) Others1 Hong Kong 14% 3% 27% France +3% +2% comp. reported Mexico 6,112 6,240 4% Gross Japan revenues Gross revenues 11% Germany 23
Slide 17: Life & Savings and Health - underlying earnings by business
Life & Savings and Health - underlying earnings by business Solid growth Underlying earnings by business (pre-tax) Underlying earnings +4% +4% comp. reported 28% 1,915 Unit-linked 1,835 4% Mutual funds & other 50% Protection & Health 18% G/A Savings 1H 20151 1H 2016 in Euro million Asset yield on th
Slide 18: Property & Casualty
/ 3 Property & Casualty
Slide 19: Revenues by market segment
Revenues by market segment Good momentum in emerging markets and Direct Mature Emerging Direct Total markets markets1 +2% +2% +11% +1% +6% +4% +4% +2% comp. reported comp. reported comp. reported comp. reported 18,183 18,602 14,082 14,407 2,712 2,743 1,389 1,451 1H 2015 1H 2016 1H 2015 1H 2016 1H 20
Slide 20: Combined ratio & Underlying earnings
Combined ratio & Underlying earnings Natural events impacted profitability Combined ratio Underlying earnings -6% -9% comp. reported 95.1% 96.0% 1,286 1,176 1H 2015 1H 2016 1H 2015 1H 2016 in Euro million Asset yield on the 3.5% investment portfolio1 20 | AXA |Half Year 2016 Earnings | August 3, 201
Slide 21: Asset Management
4 Asset Management
Slide 22: Assets Under Management roll-forward
Assets Under Management roll-forward Up by € 28 billion Assets Under Management (AUM) roll-forward in Euro billion 35 Assets Under 2015 1H 2016 2 (26) 1,152 Management in Euro billion in Euro billion 17 1,124 AXA IM Assets managed for AXA 423 424 Third party 246 255 Total 669 679 AB Assets managed f
Slide 23: Underlying earnings
Underlying earnings Decrease due to lower revenues Net flows Underlying earnings o/w €16 bn through JV in Asia vs. €19 bn in 1H 28 2015 -3% -4% comp. reported 17 (incl. joint-ventures1) 222 213 1H 2015 1H 2016 108 98 in Euro billion 115 116 7 S1 2015 S1 2016 2 En millions d’euros 1H 2015 1H 2016 in
Slide 24: Earnings snapshot & Financial strength
5 Earnings snapshot & Financial strength
Slide 25: Underlying earnings
Underlying earnings Good performance of the Life & Savings and Health business line Underlying earnings by business (pre-tax) Group Underlying Earnings +0% +0% 38% comp. reported Property & Casualty and International Insurance 3,075 3,063 26% 36% Savings Protection & & Asset Health Management1 1H 20
Slide 26: Adjusted earnings & Net income
Adjusted earnings & Net income Good progress in net income Adjusted earnings Net income -2% -3% +4% +4% comp. reported comp. reported 3,457 3,364 3,207 3,077 1H 20161 1H 2016 1H 20151 1H 2016 in Euro million in Euro million Decrease mainly driven by lower net realized Good growth, supported by under
Slide 27: Main financial strength indicators
Main financial strength indicators A robust balance sheet 68.5 74.1 Shareholders’ Mainly driven by higher unrealized equity gains on fixed income assets and in Euro billion net income contribution. 2015 1H 2016 205% 197% High solvency II ratio, lower mainly Solvency II ratio due to adverse financial
Slide 28: General Account invested assets
General Account invested assets Good diversification and quality of the investment portfolio Invested Assets Allocation (General Account insurance invested assets) 33% Corporate bonds 6% Cash 3% Listed equities 5% Real Estate € 598 bn As of June 30, 20161 3% Alternative investments2 8% 42% Other Fix
Slide 29: The Group is resilient to low interest rates and higher market volatility
The Group is resilient to low interest rates and higher market volatility 74bps 1H 2016 LIFE INVESTMENT MARGIN Interest rate headwind in line 3.5% 1H16 P&C INVESTMENT YIELD1 with “Ambition 2020” strategic plan 2% 1H16 REINVESTMENT YIELD1 All notes are on page 34 of this document 29 | AXA |Half Year
Slide 30: Concluding remarks
6 Concluding remarks Thomas Buberl
Slide 31: Conclusion
Conclusion Strong and resilient balance sheet Most diversified composite insurer Strong cash flows supporting dividends Early mover in Life & Savings product mix Proven track record in cost efficiencies Clear vision “From payer to partner” Renewed management team 31 | AXA |Half Year 20
Slide 32: Q&A Session
Q&A Session 2016 Half Year Earnings
Slide 33: SRI ratings
SRI ratings 2014 Sector leader, Ranked “A+” in the 2016 Included in the CDP Climate ranked 1st out of 37. “Assessment Report” Disclosure Leadership Included in Vigeo Euronext (Responsible Investment Index, with a score of indices strategy) 98/100 General score: 83/100 General score: 87/100 Included
Slide 34: Notes
Notes Page 3 1. First Half of 2016. 2. As of 12/31/2015. 3. Interbrand ranking 4. As of June 30, 2016. 5. Half Year 2016 insurance underlying earnings (Life & Savings ; Property & Casualty : International Insurance). 6. Pre-tax Half Year 2016 underlying earnings, excluding holdings. 7. Including G/A