Slide 1: Half Year Earnings 2018
Half Year Earnings 2018 Press conference August 2, 2018
Slide 2: Important Legal Information and Cautionary Statements Concerning Forward-Looking Statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or objectives. Un
Slide 3: Agenda
Agenda 1. Introduction 2. Business performance 3. Summary of earnings & Financial strength 4. Concluding remarks 3 Half Year Earnings 2018 | August 2, 2018
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO
Slide 5: Very strong operating performance in the first half of 2018
Very strong operating performance in the first half of 2018 53.6 3.3 3.6 2.8 Dynamic organic growth 233 for all geographies and in preferred segments € bn € bn € bn € bn % Strong increase in underlying earnings Gross Underlying Adjusted Net Solvency II per share towards the revenues earnings1 earnin
Slide 6: AXA's simplified organization is bearing fruit
AXA’s simplified organization1 is bearing fruit 1H18 1H18 Underlying earnings Underlying earnings (in € billion) growth FRANCE 0.8 +9% Strong growth across all preferred segments EUROPE (excl. France) 1.3 +10% Strong recovery in Italy and positive momentum in preferred segments with high levels of p
Slide 7: Delivering on preferred segments and technical profits
Delivering on preferred segments and technical profits P&C HEALTH PROTECTION COMMERCIAL LINES +2 % Revenues +7 % Revenues +10% APE HY18 vs. HY17 HY18 vs. HY17 HY18 vs. HY17 95.0% | (-0.8 pt) 94.9% | (-0.3 pt) 96.2% | (-0.6 pt) P&C Combined ratio Health Combined ratio Protection Combined ratio Change
Slide 8: Ambition 2020: Delivering on the upper end of the target ranges
Ambition 2020 | Delivering on the upper end of the target ranges Underlying Free Adjusted Solvency II earnings cash-flows 2 return Ratio 3 per share on equity 2 +6% €6.3 bn 15.6% 233% HY18 vs. HY17 FY17 HY18 HY18 3% - 7% €28-32 bn 12% - 14% 170% - 230% UEPS CAGR1 2015-2020 Cumulative 2016-2020 Targe
Slide 9: Transforming the risk profile of the Group
Transforming the risk profile of the Group Less exposure to financial risk IPO Swiss Group Life AXA Life of our US operations business Europe Successful IPO of AXA AXA to transform its in-force Potential disposal of European Equitable Holdings Swiss Group Life business Variable Annuities carrier Ove
Slide 10: Transforming the risk profile of the Group
Transforming the risk profile of the Group More technical margin Acquisition of XL Group Integration progressing well ü Financing of acquisition secured Creating the leading global P&C Commercial lines player ü Reduced1 potential CAT impacts by ca. 40% relative to last year Strong complementarities
Slide 11: Digital transformation with innovative partnerships
Digital transformation with innovative partnerships Offers a new standard Creates unique solutions to Builds a global insurance of protection for support new types platform through digital independent workers of mobility partnership 11 Half Year Earnings 2018 | August 2, 2018
Slide 12: Business performance
2 Business performance Gérald Harlin Deputy CEO & Group CFO
Slide 13: France: Growth fueled by preferred segments and technical expertise
France | Growth fueled by preferred segments and technical expertise Underlying earnings Profitability Business Activity In € million +9% 816 93.7% P&C Combined ratio +8% +12% 749 (-0.6 pt) Revenues Health Higher technical margin +5% in P&C, despite higher Protection natural event charges L&S +2% (+
Slide 14: Europe: Growth and profitability from disciplined execution
Europe | Growth and profitability from disciplined execution Underlying earnings Profitability Business Activity In € million +10% +3% 1,271 1,185 93.9% P&C +4% (-0.6 pt) Combined ratio Health Italy Revenues Spain Significantly higher +11% UK & Ireland Protection APE technical margin mainly in Switz
Slide 15: Asia: Growing in competitive markets with strong profitability
Asia | Growing in competitive markets with strong profitability Underlying earnings Profitability Business Activity In € million +4% Asia – High 576 544 96.5% P&C Combined ratio +3% +3% (-1.1 pts) Revenues Japan Potentials Higher technical margin +8% in Japan Hong Kong Hong Kong Higher Unit-Linked m
Slide 16: United States: Strong operating performance under IFRS
United States | Strong operating performance under IFRS Underlying earnings Profitability Business Activity In € million or -8 % +30% Adjusted for reduced ownership 565 (Euro -41 million) and 1H17 one-offs1 +1.3 AB management fee +4% APE bps €0.8 bn 465 Higher Unit-Linked management fees and GMxB he
Slide 17: International: Building for growth and improving technical profitability
International | Building for growth and improving technical profitability Underlying earnings Profitability Business Activity In € million +2% +12% +3% Health 218 210 100.1% P&C (stable) Combined ratio +4% Revenues P&C Increased profits from Russia, Commercial lines Turkey, the Gulf region and Mexic
Slide 18: AXA Investment Managers: Strong earnings growth
AXA Investment Managers | Strong earnings growth Underlying earnings Volumes In € million +10% 139 €13 bn €641 bn 129 Higher management fees +5% (+4%) Higher performance fees Higher earnings from Net inflows Revenues Average assets Asian JVs third party under management €4 billion HY17 HY18 Changes
Slide 19: Summary of earnings & Financial strength
3 Summary of earnings & Financial strength
Slide 20: Group Results
Group | Results Underlying earnings Adjusted earnings Net income In € billion In € million In € million +9% -11% Total Group 3,628 €3.3 bn 2,796 +9% Underlying earnings growth per share HY18 vs. HY17 +6% HY18 HY18 Changes at comparable basis are constant Forex, scope and methodology for activity ind
Slide 21: Main financial strength indicators
Main financial strength indicators Shareholders’ equity Solvency II ratio Financial strength ratings In € billion 233% 205% 69.6 66.0 AA- stable Aa3 negative 2017 HY18 2017 HY18 AA- stable Guidance for FY18 (post expected XL closing) 190-200% 21 Half Year Earnings 2018 | August 2, 2018
Slide 22: General Account invested assets
General Account invested assets Allocation of invested assets New fixed income investments (General Account insurance invested assets) HY18 ~23% ~8% Government bonds and related 20% 34% Below Investment Grade credit* (average rating AA) Other* Corporate bonds ~8% €597 bn Asset-Based Securities €32 b
Slide 23: Conclusion
4 Conclusion Thomas Buberl Group CEO
Slide 24: Conclusion
Conclusion ü Very strong operating performance in the first half of 2018 ü Strong increase in underlying earnings per share towards the top end of our Ambition 2020 target range ü Dynamic organic growth for all geographies and in preferred segments ü Strong acceleration on the transformation of the
Slide 25: Q&A Session
Q&A Session
Slide 26: Socially Responsible Investment Ratings
Socially Responsible Investment Ratings 2016 Sector Leader, Ranked “A+” in the 2017 General score: A- ranked 1st out of 37 “Assessment Report” Score level: « Leadership » Included in Euronext Vigeo (Responsible Investment strategy) indices Score: AAA 2017: 2nd in sector Included in the General score
Slide 27: 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. Underlying earnings and adjusted earnings are non-GAAP financial measures. For further information, please refer to the reco