Axa Sa · EURONEXT:CS
Axa Sa — H1 2015 Earnings Presentation
34 slides from Axa Sa's earnings presentation, Aug 4, 2015
Slide 1: AXA 2015 Half Year Earnings Press Conference
AXA 2015 HALF YEAR EARNINGS Press Conference Paris - August 4, 2015
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 1st half of 2015
AXA at a glance in the 1st half of 2015 Regions 55 21% EURO BN France revenues1 16% 5% United United Kingdom & Ireland 103 MILLION States 8% clients2 2% Insurance Mediterranean & Direct Underlying Latin America Region Earnings5 3.1 4% 9% Intern. EURO BN Insurance Asia excl. Japan underlying earnings
Slide 4: Agenda
Agenda 1. INTRODUCTION 5. EARNINGS SNAPSHOT & 2. LIFE & SAVINGS AND HEALTH FINANCIAL STRENGTH 3. PROPERTY & CASUALTY 6. CONCLUDING REMARKS 4. ASSET MANAGEMENT 4 | AXA |Half Year 2015 earnings | August 4, 2015
Slide 5: Introduction
1 Introduction Henri de Castries Chairman & Chief Executive Officer
Slide 6: Steady growth and all-time high underlying earnings
In the 1st half of 2015, steady growth and all-time high underlying earnings 55 € bn GROWTH OF EARNINGS DURING THE 1ST HALF OF 2015 Revenues +10%1 3 SOURCES OF GROWTH: MATURE MARKETS, HIGH 3.1 € bn Underlying Earnings GROWTH MARKETS & DIGITAL +12%1 CONFIRMED FINANCIAL STRENGTH 215 % Economic S
Slide 7: Highlights of the 1st half of 2015
Highlights of the 1st half of 2015 PURSUE THE GROUP’S TAKE ACTION ANTICIPATE & INSURE DEVELOPMENT IN THE NEW NEEDS FOR THE ENVIRONMENT WORLD Distribution partnerships for Partnership with Divestment from coal & protection products with BlaBlaCar in France and tripling of our green Nippon Life in Jap
Slide 8: Our sources of growth
Our 3 sources of growth MATURE HIGH GROWTH MARKETS MARKETS Strategic allocation of capital Focus on profitable towards growing markets growth and disciplined and business lines capital allocation DIGITAL TRANSFORMATION Across the value chain 8 | AXA |Half Year 2015 earnings | August 4, 2015
Slide 9: Building tomorrow's growth in mature and emerging markets
Building tomorrow’s growth: in mature and emerging markets MATURE MARKETS HIGH GROWTH MARKETS Continental Europe Protection & Health +12% APE in Life & Savings ORGANIC +4% and Unit-Linked GROWTH +11% Property & Casualty revenues 1H 20151 New business sales (APE) +7% Direct revenues Intent to increas
Slide 10: Building tomorrow's growth through digital transformation
Building tomorrow’s growth: through our digital transformation SCOUT ENGAGE INVEST Detect emerging Attract new skills & Gain knowledge trends deploy talent Support promising Accelerate digital Learn, pilot, implement companies awareness (San Francisco, Shanghai) (Paris, Singapore) (Europe, North Ame
Slide 11: Building tomorrow's growth: better protect with the help of data
Building tomorrow’s growth: better protect with the help of data The Data Innovation Lab: a concrete reality for AXA Audience & Consumer Household Intelligent bodyshop Upsell propensity Driving score Value Targeting geo-pricing orientation modelling pricing discount (Group) (France) (Spain) (US) (Sw
Slide 12: In line with Ambition AXA's financial objectives
In line with Ambition AXA’s financial objectives Underlying Earnings per Share Group operating Free Cash Flows AMBITION AXA AMBITION AXA 1H 2010 – 1H 2015 TOTAL 2011-2014 OBJECTIVE OBJECTIVE +5 to +10% annually from 2010 to 2015 +7% € 24 bn total 2011-2015 € 19.6 bn (Compound annual growth rate) (Co
Slide 13: Life & Savings and Health
2 Life & Savings and Health Denis Duverne Deputy Chief Executive Officer
Slide 14: Life & Savings and Health
Life & Savings and Health € 20 billion increase in the value of our customers’ Life Insurance invested assets € 6 billion benefits paid to Protection & Health 1.1 million customers benefited from health customers assistance services 14 | AXA |Half Year 2015 earnings | August 4, 2015
Slide 15: New business sales (APE) by activity
New business sales (APE) by activity 5% growth in new business Protection Unit-Linked G/A Savings Mutual Funds & Health & Other +2% +13% +8% +21% -8% -5% +18% +37% comp. reported comp. reported comp. reported comp. reported 1,360 1,350 1,207 1,114 479 522 455 381 1H 2014 1H 2015 1H 2014 1H 2015 1H 2
Slide 16: Focus on the most profitable regions and segments
Ambition AXA Focus on the most profitable regions and segments Optimisation Acceleration of the business mix in emerging countries1 New business sales (APE) New business sales (APE) +5% +16% +12% +32% comp. reported comp. reported € 3.7 bn € 3.2 bn 14% Mutual Funds 680 & other 12% 513 37% New busine
Slide 17: Underlying earnings: a steady growth
Underlying earnings A steady growth Underlying earnings by business (pre-tax) Underlying earnings +2% +13% comp. reported 31% Unit-Linked 1,862 1,651 2% Mutual Funds & Other 49% Protection & Health 18% G/A Savings 1H 2014 1H 2015 in Euro million Asset yield on the 3.7% investment portfolio 17 | AXA
Slide 18: Property & Casualty
3 Property & Casualty Denis Duverne Deputy Chief Executive Officer
Slide 19: Property & Casualty
Property & Casualty 10 € billion in compensations paid to our customers after a Property & Casualty claim 200,000 1.6 million new contracts through Direct customers taken care of by AXA Assistance following a car breakdown 19 | AXA |Half Year 2015 earnings | August 4, 2015
Slide 20: Revenues by market segment
Revenues by market segment Good momentum in Asia and Direct Mature Emerging Direct Total markets markets1 +0% +5% +4% +20% +7% +16% +1% +8% comp. reported comp. reported comp. reported comp. reported 18,183 o/w Asia 16,820 +6% 14,082 13,349 2,712 2,269 1,389 1,202 1H 2014 1H 2015 1H 2014 1H 2015 1H
Slide 21: Combined ratio & Underlying earnings
Combined ratio & Underlying earnings Improved combined ratio and underlying earnings growth Combined ratio Underlying earnings +0% +5% comp. reported 95.8% 95.1% 1,286 1,226 1H 2014 1H 2015 1H 2014 1H 2015 in Euro million Asset yield on the 3.7% investment portfolio 1H 2015 21 | AXA |Half Year 2015
Slide 22: Asset Management
4 Asset Management Denis Duverne Deputy Chief Executive Officer
Slide 23: Assets Under Management roll-forward
Assets Under Management roll-forward Up by € 116 billion Assets Under Management (AUM) roll-forward in Euro billion Assets Under 2014 1H 2015 61 1,152 Management in Euro billion in Euro billion AXA IM 20 Assets managed for AXA 401 423 28 7 Third party 222 270 1,036 Total 623 694 AB Assets managed fo
Slide 24: Underlying earnings
Underlying earnings Strong increase in the net flows and earnings Net flows Underlying earnings o/w €19 bn through JV in Asia vs. €5 bn in 1H 2014 28 +6% +21% comp. reported (incl. joint-ventures1) 11 222 184 1H 2014 1H 2015 in Euro billion 115 101 83 108 7 3 1H 2014 1H 2015 1H 2014 1H 2015 in Euro
Slide 25: Earnings snapshot & Financial strength
5 Earnings snapshot & Financial strength Denis Duverne Deputy Chief Executive Officer
Slide 26: A disciplined and agile Group with Ambition AXA
A disciplined and agile Group with Ambition AXA A balanced contribution of each business line to growing earnings Underlying earnings by business (pre-tax) Group Underlying Earnings +2% +12% 41% comp. reported Property & Casualty 3,102 and International Insurance 2,777 24% 35% Protection & Health Sa
Slide 27: Adjusted earnings & Net income
Adjusted earnings & Net income Good progress in adjusted earnings Adjusted earnings Net income +3% +12% -7% +2% comp. reported comp. reported 3,485 3,112 3,077 3,008 1H 2014 1H 2015 1H 2014 1H2015 in Euro million in Euro million Adjusted earnings growth is mainly driven by Net income lower increase
Slide 28: Main financial strength indicators
Main financial strength indicators A robust balance sheet 65.2 66.9 Shareholders’ Mainly reflects Net Income equity in Euro billion contribution & favorable forex 2014 1H 2015 201% 215% High Solvency ratio, mainly reflects Economic Solvency the contribution of underlying earnings. 2014 1H 2015 24% 2
Slide 29: General Account invested assets
General Account invested assets Good diversification and quality of the investment portfolio Allocation of invested assets Asset and Liability Management (General Account insurance invested assets) Duration of Group Fixed Income assets and liabilities as of June 30, 2015 Assets 7 years 4% 33% Liabil
Slide 30: Concluding remarks
6 Concluding remarks Henri de Castries Chairman & Chief Executive Officer
Slide 31: Staying the course of Ambition AXA and pursuing the transformation
Staying the course of Ambition AXA and pursuing the transformation of the Group CONTINUOUS 1H 2015 GOING DELIVERY HIGHLIGHTS FORWARD Profitable growth Pursuit of the Well positioned to Group’s achieve the Strong balance development in the objectives of sheet world: Brazil, Egypt Ambition AXA
Slide 32: Q&A Session
Q&A Session 2015 Half Year Earnings
Slide 33: SRI ratings
SRI ratings 2014 Sector leader, Ranked “A+” in the 2015 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) 100/100 General score: 77% General score: 81/100 (vs. sector
Slide 34: Notes
Notes Page 3 1. First Half of 2015. 2. As of 12/31/2014. 3. Interbrand ranking 4. As of June 30, 2015. 5. Half Year 2015 insurance underlying earnings (Life & Savings ; Property & Casualty : International Insurance). 6. Pre-tax Half Year 2015 underlying earnings, excluding holdings. 7. Including G/A