Axa Sa · EURONEXT:CS
Axa Sa — FY2016 Earnings Presentation
34 slides from Axa Sa's earnings presentation, Feb 23, 2017
Slide 1: 2016 Full Year Earnings Press Conference
2016 FULL YEAR EARNINGS Press conference Paris – 23 February 2017
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: Agenda
Agenda 1. INTRODUCTION 2. BUSINESS LINES 3. FRANCE 4. SUMMARY OF EARNINGS & FINANCIAL STRENGTH 5. CONCLUDING REMARKS 3 | AXA |Full Year 2016 Earnings | February 23, 2017
Slide 4: Introduction
Introduction Thomas Buberl Chief Executive Officer
Slide 5: In 2016, AXA delivered a good performance
In 2016, AXA delivered a good performance € 100 bn Revenues €100 billion revenues for the +2% 1 first time in Group’s history € 5.7 bn Underlying earnings Earnings growth in 2016 +3%1 Solid results in a challenging 197% macroeconomic environment Solvency II ratio On track towards Ambition 10
Slide 6: On track towards Ambition 2020 targets
On track towards Ambition 2020 targets FOCUS & TRANSFORM Underlying earnings per share Group operating free cash flows 4% €6.2 billion FY16 vs. FY15 FY16 EUR 28 – 32 bn 3% - 7% CAGR1 2015-2020E Cumulative 2016E-2020E Adjusted return on equity2 Solvency II ratio3 13.5% 197% FY16 FY16 12% – 14% 17
Slide 7: Health: an expanding market
Health: an expanding market The ‘better health’ opportunity: € 12 bn FY16 revenues1 • Prevention through wellbeing and health analytics • Coordination of customer’s healthcare journey +4% FY16 gross revenues • Targeted management of chronic diseases growth Employee Health Gateway: available in 94.9%
Slide 8: Life & Savings: a profitable growth
Life & Savings: a profitable growth The ‘retirement’ opportunity: € 6.6 bn New business sales (APE1) • Clients are ready to invest in upside- generating products • Strong potential in capital light +2 % savings 40% • Key strengths across the value chain with advice, omni-access and proprietary asset
Slide 9: Commercial lines: well positioned in an attractive market
Commercial lines: well positioned in an attractive market The ‘business protection’ opportunity: € 17.2 bn FY16 revenues • SMEs: innovation and agility • Mid Market: expertise and customized offers +2% • AXA International Services: our global network to support our clients FY16 revenues growth 48% I
Slide 10: Asia: a growth story
Asia: a growth story The ‘next 100 million customers’ +16% APE growth opportunity: • Leveraging a unique partnerships portfolio • Improving the business mix towards +3% P&C economic revenues higher margin Protection & Health and Lifestyle products growth • Reaching the emerging middleclass € 588 m I
Slide 11: Becoming an innovation leader: collaborating with new players
Becoming an innovation leader: collaborating with new players €40 million invested in 26 start-ups Strategic partnerships Launch of a €150 million Fund of Funds Exploring new markets and segments 3 pilot projects launched Part of our global emerging customers Innovations in health and
Slide 12: Becoming an innovation leader: people management
Becoming an innovation leader: people management Partners’ committee AXA awarded EDGE Certification 40 top executives to steer AXA’s Women in senior leadership roles: transformation reaching at least 33% in 2020 Developing the skills of our employees A progressive, global parental leave
Slide 13: Becoming an innovation leader: a better impact on society
Becoming an innovation leader: a better impact on society AXA divests from the tobacco industry • Divestment value: € 1.8 billion • Alignment between our investments and our insurance business Partnership with Sustainable reporting UNICEF on impact prevention • AXA wins top award for its investment-
Slide 14: Business lines
Business lines Gérald Harlin Chief Financial Officer
Slide 15: Life, Savings & Health: new business sales
Life, Savings & Health New business sales (APE) by activity Protection Unit-Linked G/A Savings Mutual Funds & Health & Other +2% -10% +15% +10% comp. comp. comp. comp. 3,025 2,949 1,837 1,549 1,438 943 664 658 FY15 FY16 FY15 FY16 FY15 FY16 2015 2016 Restated1 Restated1 Restated1 Restated1 in Euro mi
Slide 16: Life, Savings & Health: underlying earnings
Life, Savings & Health Underlying earnings Underlying earnings by business (pre-tax) Underlying earnings +2% comp. 23% 3,375 3,507 Unit-Linked 55% Protection & Health FY 2016 19% G/A Savings 3% Mutual Funds FY15 FY16 & Other Restated in Euro million Asset yield on the investment portfolio 3.3% FY16
Slide 17: Property & Casualty: revenues by market
Property & Casualty Revenues by market Mature Markets Emerging Markets1 Direct Total +2% +7% +7% +3% comp. comp. comp. comp. 35,604 34,831 27,606 26,940 5,159 5,134 2,864 2,732 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 Restated Restated Restated Restated in Euro million in Euro million in Euro million
Slide 18: Property & Casualty: combined ratio & underlying earnings
Property & Casualty Combined ratio & Underlying earnings Combined ratio Underlying earnings +2% comp. 96.2 % 96.5 % 2,482 2,514 FY15 FY16 FY15 FY16 Restated Restated in Euro million Asset yield on the 3.4% investment portfolio FY16 18 | AXA |Full Year 2016 Earnings | February 23, 2017
Slide 19: Asset management: assets under management
Asset management Assets under management Average assets under management Total average assets under management -3% 618 595 -1% 1,071 1,059 (excl. JVs) FY15 FY16 in Euro billion +2% (excl. Friends Life Impact) +1% 464 453 FY15 FY16 FY15 FY16 in Euro billion in Euro billion 19 | AXA |Full Year 2016 Ea
Slide 20: Asset management: net flows and underlying earnings
Asset management Underlying earnings Net flows Underlying earnings +56 -8% comp. +42 458 (incl. JVs1) 416 FY15 FY16 234 -1% in Euro billion 225 224 -16% +3 191 (+6% excl. Tax one-off) -12 FY15 FY16 FY15 FY16 in Euro million in Euro billion All notes are on page 34 of this document 20 | AXA |Full Yea
Slide 21: France
France Jacques de Peretti Chairman & Chief Executive Officer of AXA France
Slide 22: AXA France in 2016
AXA France in 2016 Key figures A variety of businesses Underlying earnings (pre-tax) €22.8 Bn 94.1% 45 % Property & 10% Life & Savings Revenues Combined ratio P&C Casualty Unit-Linked growth: 4,1% (FY15: 95.3%) 19% 26% Life & Savings 40% Protection & +6% G/A Savings Health Unit-Linked ratio in indiv
Slide 23: AXA France in 2020: greater simplicity for our clients
AXA France in 2020: greater simplicity for our clients! … thanks to multi The first multi expertise access, competitive … for more simplicity for insurer … and innovative services our clients … … More expertise in each Reinforcement of Multi- During the subscription market access process A committed
Slide 24: Earnings summary & Financial strength
Earnings summary & Financial strength Gérald Harlin Chief Financial Officer
Slide 25: Group Underlying earnings
Group Underlying earnings Underlying earnings by business (pre- tax) Group Underlying Earnings +3% 39% comp. Property & Casualty 5.5 5.7 27% 34% Protection & Savings Health & Asset Management1 FY15 FY16 in Euro billion Underlying Earnings per share growth FY16 vs. FY15 +4% All notes are on page 34 o
Slide 26: Adjusted earnings & Net income
Adjusted earnings & Net income Adjusted earnings Net income +3% +2% At constant Forex At constant Forex 5,940 6,103 5,829 5,617 FY15 FY16 FY15 FY16 in Euro million in Euro million 26 | AXA |Full Year 2016 Earnings | February 23, 2017
Slide 27: Main financial strength indicators
Main financial strength indicators 68.5 70.6 Shareholders’ Mainly driven by the net equity income contribution in Euro billion FY15 FY16 205% 197% Solvency II Remains well within our ratio target range FY15 FY16 Financial strength AA- Aa3 AA- ratings stable stable stable 27 | AXA |Full Year 2016 Ear
Slide 28: General Account invested assets
General Account invested assets Allocation of invested assets New fixed income investments (General Account insurance invested assets) 2016 ~28% ~12% Government bonds and 4% 35% Below Investment Grade credit * related Average rating: AA Cash Corporate 3% bonds Listed equities 5% € 583 bn 3% ~8% New
Slide 29: Dividend
Dividend Dividend Payout Ratio in Euro per share +5% comp. 1.10 1.16 48% Payout Ratio Guidance 45-55% 2015 2016 of adjusted earnings 29 | AXA |Full Year 2016 Earnings | February 23, 2017
Slide 30: Concluding remarks
Concluding remarks Thomas Buberl Chief Executive Officer
Slide 31: Concluding remarks
Concluding remarks A strong performance On track on the headline targets of our Ambition 2020 plan Focusing on the execution of clear management levers Pursuing the transformation of the Group Becoming an innovation leader to empower people to live a better life 31 | AXA |Full Year 2016 Ea
Slide 32: Q&A Session
Q&A Session 2016 Full Year Earnings
Slide 33: Socially Responsible Investment Ratings
Socially Responsible Investment Ratings 2016 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 indices strategy) General score: 87/100 Score: 85/100 (vs. sector a
Slide 34: Notes
Notes Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified. Page 5 1. Changes on a reported basis. Page 6 1. Compound annual growth rate, on a reported basis 2. Adjusted ROE: return corresponds t