Voya Financial, Inc. · NYSE:VOYA
Voya Financial — ING U.S. — IPO Roadshow (March 2014)
38 slides from Voya Financial's IPO roadshow presentation, Mar 18, 2014
Slide 1: ING U.S. Follow-On Equity Offering
Exhibit 99.2 ING U.S. America’s Retirement Company™ Making a secure financial future possible – one person, one family, one institution at a time ING U.S. Follow-On Equity Offering March 2014 RETIREMENT • INVESTMENTS • INSURANCE
Slide 2: Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Measures
Note Regarding Forward-Looking Statements and Use of Non-GAAP Financial Measures This document contains 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
Slide 3: Offering Summary
Offering Summary Company ING U.S., Inc. (“ING U.S.”) Exchange / Ticker NYSE / VOYA Shares Offered [33 – 36 million] Primary / Secondary 100% Secondary Selling Shareholder ING Groep N.V. Underwriters’ Option [15% Greenshoe (Secondary)] Expected Pricing Week of March 17 Joint Global Coordinators Morga
Slide 4: Office of the CEO
Office of the CEO Rod Martin Alain Karaoglan Ewout Steenbergen Chief Executive Officer Chief Operating Officer Chief Financial Officer More than 35 years of experience More than 25 years of experience More than 22 years of experience in financial services. Former in the financial services industry,
Slide 5: Focus on Execution, Driving Return on Equity Improvement
ING U.S. TODAY Focus on Execution, Driving Return on Equity Improvement Substantial Leading scope for Strong track franchise in continuing record of attractive Return on execution markets Equity (ROE) improvement 12% 400-500 # 1 CAGR bps publicly traded in Ongoing Business targeted increase in Defin
Slide 6: ING U.S. at a Glance
ING U.S. at a Glance Diverse Earnings – Three $9.3Bn Ongoing Businesses Market cap(1) 74% of earnings from Retirement Solutions and Investment Management (6) AUM / AUA(2) $511Bn FY’13 Ongoing Business Adjusted Operating Earnings Before Interest and Income Taxes: $1,212 million (6) Customers(3) 13M R
Slide 7: Three Key Sources of Value
Three Key Sources of Value Tax Assets Ongoing Potential Provide Business CBVA Value Potential Upside Retirement • Investments • Insurance 7
Slide 8: Continued Solid Execution since IPO, Supported by Favorable Markets
Continued Solid Execution since IPO, Supported by Favorable Markets Year in Review: 2013 Achievements Markets Forward Interest Rate Curve Initial Public Offering: Priced our IPO on May 1, Current (3/14/14) 2013 At IPO Secondary Offering: ING Group’s secondary offering (5/1/13) on October 23, 2013 re
Slide 9: America's Retirement Company
TM America’s Retirement Company Premier Franchise with Leading Positions in Attractive Markets Experienced Management Team Executing a 400-500bps ROE Improvement Plan by 2016 Solid Foundation Based on a Re-Capitalized and De-Risked Balance Sheet Retirement • Investments • Insurance 9
Slide 10: Leveraging Three Strong Platforms
Leveraging Three Strong Platforms Retirement Investment Insurance Solutions Management Solutions #1 publicly traded Defined 93% of fixed income #13 provider of term life Contribution recordkeeper assets and 84% of equity insurance (6) with a full array of assets outperformed #6 provider of stop loss
Slide 11: ING U.S. Today: A Different Kind of Company
ING U.S. Today: A Different Kind of Company Today: Value Creation Focus Capital management Profitable growth A Segment synergies Cultural Past: Top Line Focus Transformation Operational efficiency Market share Growth Our Metrics Acquisitions Risk-adjusted returns Sales Distributable earnings Sales a
Slide 12: Focus on Execution, Driving ROE Improvement
Focus on Execution, Driving ROE Improvement The ING U.S. Investment Proposition Solid foundation 1 Significant progress repositioning the company America’s Retirement Company™ 2 Premier franchise Leveraging three platforms Driving ROE improvement 3 On track to achieve 2016 targets Retirement • Inves
Slide 13: America's Retirement Company
America’s Retirement Company TM Premier Franchise with Leading Positions in Attractive Markets Experienced Management Team Executing a 400-500bps ROE Improvement Plan by 2016 Solid Foundation Based on a Re-Capitalized and De-Risked Balance Sheet Retirement • Investments • Insurance 13
Slide 14: Comprehensive Plan with Clear Goals
Comprehensive Plan with Clear Goals Ongoing Business Adjusted Operating Ongoing Business Adjusted Operating ROE Goal ROC Goal 400–500bps 300–400bps 10-11% 12-13% 7.2% 8.3% 2012 Ongoing Business 2016 Target Ongoing 2012 Ongoing Business 2016 Target Ongoing Adjusted Business Adjusted Adjusted Business
Slide 15: Evidence Our Plan is Working
Evidence Our Plan is Working Ongoing Business Adjusted Operating ROC(1) Notable items that might not recur contributed to the improvement in the Margin category (1) Ongoing Business includes Retirement, Annuities, Investment Management, Individual Life, and Employee Benefits segments and excludes Cl
Slide 16: Each Business Has Its Own ROC / ROE Target
Each Business Has Its Own ROC / ROE Target and Each Contributed to ROE / ROC Improvement in 2013 (1) Ongoing Business Adjusted Operating ROE / ROCs 2016 Target 2012 2013 Range ROC by Segment: Retirement 7.2% 8.9% 10.0 – 11.0% Annuities 5.9% 7.3% 7.0 – 9.0% (4) Investment Management P/T Op. Margin 24
Slide 17: Retirement Solutions – Leading Franchise Driving Long-Term Growth and Returns
Retirement Solutions – Leading Franchise Driving Long-Term Growth and Returns Ongoing Business Adjusted Operating Earnings Key Drivers of ROC Improvement Before Interest and Income Taxes(1) ($ millions) Adjusting crediting rates in response to changes in the external rate environment $734 Margin Inc
Slide 18: Investment Management – Scalable Platform Leveraging Strong Investment Performance
Investment Management – Scalable Platform Leveraging Strong Investment Performance Ongoing Business Adjusted Operating Earnings Key Drivers of Improvement Before Interest and Income Taxes & Margin(1) ($ millions) $165 Improving sales force productivity Margin Reducing retail outflows $132 Increasing
Slide 19: Insurance Solutions – Repositioned Toward Capital Efficient Products
Insurance Solutions – Repositioned Toward Capital Efficient Products Ongoing Business Adjusted Operating Earnings Key Drivers of ROC Improvement Before Interest and Income Taxes (1) ($ millions) Continuing to manage expenses relative to sales volume Margin Managing non-guaranteed elements of in-forc
Slide 20: America's Retirement Company
America’s Retirement Company TM Premier Franchise with Leading Positions in Attractive Markets Experienced Management Team Executing a 400-500bps ROE Improvement Plan by 2016 Solid Foundation Based on a Re-Capitalized and De-Risked Balance Sheet Retirement • Investments • Insurance 20
Slide 21: Financial Transformation Driving Value Creation
Financial Transformation Driving Value Creation Valuable Significant Balance Sheet Ongoing Improvement in Re-structuring Franchise and Profitability and De-risking Other Assets 12% Ongoing Business Significantly reduced leverage Ongoing Business Adjusted Operating Earnings 12% –13% ROE target by Bef
Slide 22: Solid Improvement in Operating Earnings While Keeping Administrative Expenses Flat
Solid Improvement in Operating Earnings While Keeping Administrative Expenses Flat Ongoing Business Adjusted Operating Earnings Before Interest and Income Taxes (1) ($ millions) $1,212 $1,093 $976 $767 $854 2009 2010 2011 2012 2013 Ongoing Business Administrative Expenses ($ millions) 1% CAGR $1,597
Slide 23: 4Q'13 & 1Q'14 Operating Earnings Observations and Seasonality
4Q’13 & 1Q’14 Operating Earnings Observations and Seasonality ($ millions, pre-tax and pre-DAC) 1Q’14 Observed Variances and 4Q'13 Non-Recurring and Variable Items Anticipated Seasonality Lehman Recovery and LIHTC $ 9.0 Through the end of February, we had ~$2 million of prepayment fee income CB - IS
Slide 24: Continued Positive Net Flows
Continued Positive Net Flows Retirement Net Flows(1) ($ billions) $1.8 $1.3 $1.4 Net Flows excl. Stable $0.5 Value $0.6 $0.9 Stable Value Net Flows $0.6 $0.5 $0.4 $0.2 $0.4 $0.2 $0.2 $0.5 $0.2 $0.2 $0.4 $0.2 $0.4 $0.3 $0.3 $0.2 $0.2 ($0.1) 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 Investment M
Slide 25: Active Hedge Program in Closed Block Variable Annuity
Active Hedge Program in Closed Block Variable Annuity Change in Statutory Reserves Relative to Hedge 4Q’13 Results ($ billion) Equity impacts (increase) decrease in stat reserve liability Available resources Equity impacts increase (decrease) in hedge assets of $4.3 billion (1) Guaranteed LB $1.5 St
Slide 26: Closed Block Variable Annuity Cash Flow Scenarios Improved Over Past Year
Closed Block Variable Annuity Cash Flow Scenarios Improved Over Past Year ($ billions) Time Zero Equivalent PV of Cash Flows PV of Cash Flows We switched to a Scenario Assumptions as of Year End as of Year End as of Year End 2012(2) 2013(2) Present Value (PV) 2012(1) methodology because Equity retur
Slide 27: Significant NPV of Projected Tax Savings
Significant NPV of Projected Tax Savings ($ millions) SLDI Related Life Subgroup Non-Life Subgroup Op. Loss Carry Forwards Deferred Losses Deferred Losses Deferred Losses Non-Life federal net Losses incurred on VA Losses incurred on VA Tax-based goodwill operating loss carry hedge program resident h
Slide 28: America's Retirement Company
America’s Retirement Company TM Premier Franchise with Leading Positions in Attractive Markets Experienced Management Team Executing a 400-500bps ROE Improvement Plan by 2016 Solid Foundation Based on a Re-Capitalized and De-Risked Balance Sheet Retirement • Investments • Insurance 28
Slide 29: ING U.S. is on a path to become Voya Financial
“4 ING U.S. is on a path to become VOYA FINANCIAL’ RETIREMENT | INVESTMENTS | INSURANCE VOYA FINANCIAL
Slide 30: Appendix
Appendix Retirement • Investments • Insurance 30
Slide 31: Profile of the Variable Annuity Closed Block
Profile of the Variable Annuity Closed Block ($ millions) VA policies sold primarily between 2001 and 2010 offered living and / or death benefit guarantees Majority of customer accounts were invested (at customer’s discretion) in equities Equity market downturn depressed account values Net Amount %
Slide 32: Resources Needed Have Declined Over the Past Year
Resources Needed Have Declined Over the Past Year Reflecting Lower Expected Benefit Payments ($ billions) Year End Resources Needed Year End 2013 Change 2012 Scenario 1 $8.9 $5.2 $(3.7) Scenario 2 6.2 2.4 (3.8) Scenario 3 5.3 1.8 (3.5) Scenario 4 4.6 1.4 (3.2) Resources Needed = PV Benefit Payments,
Slide 33: CBVA Benefit Payments and Hedge Losses Declined More than Fees Versus 2012
CBVA Benefit Payments and Hedge Losses Declined More than Fees Versus 2012 PV of Cash Flows: Scenario 3 Year End Year End ($ billions) 2012 2013 (1) Available Resources $7.5) $4.3) PV of Fees Net of Expenses 7.4) 6.3) PV of Benefit Payments (4.6) (2.1) PV of Hedge Gain/Loss (8.1) (6.0) PV of Cash Fl
Slide 34: Capital and Returns by Segment
Capital and Returns by Segment ($ millions) Adjusted Operating Return Capital as of Capital as % of on Capital for the December 31, Consolidated Year Ended 2013 Capital December 31, 2013 By Segment: Retirement 4,007 27% 8.9% Annuities 1,713 12% 7.3% Investment Management 302 2% 35.4% Individual Life
Slide 35: Reconciliation of Adjusted Operating Earnings to Net Income
Reconciliation of Adjusted Operating Earnings to Net Income ING U.S. Reconciliation of Ongoing Business Adjusted Operating Earnings to Net Income (Loss) Year ended Year ended Year ended ($ in millions) December 31, 2013 December 31, 2012 December 31, 2011 Ongoing Business adjusted operating earnings
Slide 36: Reconciliation of Ongoing Business Adjusted Operating Earnings Before Interest and Income Taxes
Reconciliation of Ongoing Business Adjusted Operating Earnings Before Interest and Income Taxes Reconciliation of Ongoing Business Adjusted Operating Earnings Before Interest and Income Taxes ($ millions) 2013 2012 2011 2010 2009 Ongoing Business Operating Earnings Before Interest and Income Taxes R
Slide 37: Reconciliation of Adjusted Operating Return on Capital and Return on Equity
Reconciliation of Adjusted Operating Return on Capital and Return on Equity Year Ended December 31, 2013 Retirement Solutions Investment Insurance Solutions Ongoing Business Closed Block Corporate and Other Consolidated Retirement Annuities Management Individual Life Employee Benefits Variable Annui
Slide 38: Making a secure financial future possible
Making a secure financial future possible – one person, one family, one institution at a time Retirement • Investments • Insurance 38