Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Merger or Acquisition (December 2019)
13 slides from Voya Financial's merger presentation, Dec 18, 2019
Slide 1: Focused on Growth – Sale of Individual Life
Voya Financial Focused on Growth – Sale of Individual Life December 18, 2019
Slide 2: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements This presentation and the remarks made orally contain forward-looking statements. The company does not revise or update them to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to
Slide 3: Transaction Accelerates Future Free Cash Flows from Individual Life and Continues Focus on Growth
Transaction Accelerates Future Free Cash Flows from Individual Life and Continues Focus on Growth Accelerates Free ■ $1.7 billion of deployable capital from the Individual Life segment, accelerating the Investor Day Cash Flows target of at least $1 billion of free cash flow over 5 to 6 years1 Improv
Slide 4: Transaction Overview
Transaction Overview ■ Divested closed block Individual Life, Non-Retirement Annuities and pension risk businesses through sale of legal entities and reinsurance: Transaction Summary ■ SLD, SLDI, and certain subsidiaries acquired by affiliates of Resolution Life2 ■ VRIAC, RLNY, and RLI life insuranc
Slide 5: Transaction Accelerates Free Cash Flows From Individual Life
Transaction Accelerates Free Cash Flows From Individual Life Accelerated Cash Flows Expected Cash Flow Generation Profile at with Transaction Investor Day 2018 without Transaction $ millions $ millions ~$1,700 ~$1,500 $1,000+ ~$200 ~$200 ~$200 2019 2020 2021 2022 2023 2024 2019-2024E Reserve Financi
Slide 6: Path to EPS Growth
Path to EPS Growth $0.36 - $0.46 $0.15 - $0.20 $0.18 - $0.22 ($0.28) - ($0.30) ($0.18) - ($0.22) $1.80 - $1.90 $1.57 Reduce legal entities and administrative $1.45 $1.27 systems $1.27 $1.07 Streamline $1.07 operations and reporting TSA / ASA revenues 3 4Q'19 Run-Rate Individual Life and Strand
Slide 7: Committed to Achieving our Long-Term Targets
Committed to Achieving our Long-Term Targets Streamlined High End of EPS Growth Target1 Share Repurchases Businesses FCF Conversion 3 10%+ 85 - 95% $1 billion+ High Growth, Normalized FCF Share High Return, EPS Growth Conversion Repurchases Capital Light through 2021 Ratio in 2020 Businesses 1. Norm
Slide 8: Multiple Levers for Future Growth
Multiple Levers for Future Growth Retirement Employee Benefits Investment Management Leverage Scale, Brand and Expand share in faster Leverage and deepen Culture to drive growth growing Stop Loss & distribution and external across all Markets Voluntary benefits markets intermediary relationshi
Slide 9: Appendix
PLAN | INVEST | PROTECT 9 FINANCIAL
Slide 10: Transaction Structure
Transaction Structure Transaction Overview 3 Voya Resolution Structure accomplishes transfer of all of Financial Life Voya’s individual life business and majority of legacy blocks Resolution Life will establish a new life insurance Holdco in Colorado which will acquire the transferred regulated
Slide 11: Voya Simplified Following Transaction
Voya Simplified Following Transaction Transaction removes 5 regulated insurance companies, a broker-dealer, and reinsures certain life insurance policies, pension risk transfer business Voya Financial and non-retirement annuities to SLD. Inc. Voya Holdings SLD SLDI (Connecticut) (Colorado) (Arizona
Slide 12: Strong Free Cash Flow Conversion at Higher End of 85% – 95% from our Core Businesses
Strong Free Cash Flow Conversion at Higher End of 85% – 95% from our Core Businesses Projected Free Cash Flow Conversion by Segment Retirement 75 – 85% Investment Management 90 – 100% Employee Benefits 75 – 85% Corporate / Tax Asset Utilization Benefit 0 – 5% Total Free Cash Flow Conversion 85 – 95%
Slide 13: Future Revenues less tied to Mortality and Interest Rates
Future Revenues less tied to Mortality and Interest Rates Adjusted Operating Revenue Adjusted Operating Revenue at Investor Day Pro Forma for Transaction (Normalized)1 (Normalized)2 22% 18% 46% 54% 28% 32% Fee Income Investment Spread Net Underwriting 1. 3Q’18 TTM. Normalized for prepayment and alte
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