Axa Sa · EURONEXT:CS
Axa Sa — FY2012 Earnings Presentation
50 slides from Axa Sa's earnings presentation, Feb 21, 2013
Slide 1: 2012 Full-Year Earnings Press Conference
2012 Full-Year Earnings Press Conference Paris - 21 February 2013
Slide 2: Cautionary note concerning forward-looking statements
Cautionary note concerning 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 be
Slide 3: AXA at a glance
AXA at a glance Regions Euro billion 90.1 revenues (1) Asia (excl. Japan) 8% Japan France 8% 26% 1,116 Euro billion assets under management (2) Insurance Northern, Underlying Central & United States Eastern Europe Earnings(4) 11% 4.3 Euro billion underlying earnings (1) 34% United Kingdom & Ireland
Slide 4: Agenda
Agenda 1 Focus on our transformation page 6 5 Asset management page 30 2 Life & Savings page 14 6 Global performance page 35 3 Property & Casualty page 20 7 Balance sheet indicators page 41 4 Focus on France page 26 8 Concluding remarks page 44 4 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 5: Halfway towards Ambition AXA, we are on track
Halfway towards Ambition AXA, we are on track A performance aligned with the financial Performance objectives of Ambition AXA Thanks to the commitment of the teams, the Execution roll-out of the Group’s strategic priorities continues to be on track Further strengthening of the balance sheet and 2012
Slide 6: Focus on our transformation
2012 Full-Year Earnings 1 Focus on our transformation Henri de Castries Chairman & Chief Executive Officer 6 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 7: Building a Group… better performing and more efficient
1 Building a Group… better performing and more efficient FOCUS ON OUR TRANSFORMATION Evolution of Group revenues and earnings Underlying Adjusted Revenues earnings earnings In Euro billion In Euro billion In Euro billion 90.1 90.1 4.5 4.3 3.9 3.5 FY09* FY12 FY09* FY12 FY09* FY12 FY12 Change FY12 Cha
Slide 8: Building a Group… more solid
1 Building a Group… more solid FOCUS ON OUR TRANSFORMATION Evolution of main financial solidity indicators Shareholders’ Debt gearing Solvency ratio equity In Euro billion 53.7 233% (2) 46.2 30% (1) 26% 171% FY09* FY12 FY09* FY12 FY09* FY12 FY12 Change FY12 Change FY12 Change FY12 vs. FY11 reported
Slide 9: Building a Group… more collaborative
1 Building a Group… more collaborative FOCUS ON OUR TRANSFORMATION Launch of the Life & Savings and Property & Casualty Global Business 2010 Lines: multi-country products, platform optimization, acceleration of skill and people transfers between entities … Creation of a Diversity & Inclusion departm
Slide 10: Building a Group… more responsible
1 Building a Group… more responsible FOCUS ON OUR TRANSFORMATION Building a more secure world: Acting for the long term: the collective interest is our interest our commitment The evolution of the ESG performance of the Group is Supporting research monitored by specialized external agencies, while
Slide 11: Strengthening our agility: geographical footprint 2009-2012
1 Strengthening our agility… to optimize our geographical presence FOCUS ON OUR TRANSFORMATION Evolution of AXA’s geographical footprint from 2009 to 2012 19 countries 4 Euro billion AXA has either entered or reinforced its presence invested in new since 2009 markets 102 million AXA staff present Ac
Slide 12: Leveraging pockets of growth in high growth markets
1 Strengthening our agility… to leverage pockets of growth in high growth markets FOCUS ON OUR TRANSFORMATION High growth market & business contribution (1) Increasing contribution of ICBC – AXA on track to create a high growth markets leading franchise in China China APE in Euro million, 6,058 100%
Slide 13: Improving our business mix
1 Strengthening our agility… to improve our business mix FOCUS ON OUR TRANSFORMATION Evolution of insurance sales & margins Property & Casualty Life & Savings Mutual Funds 9% & Other 11% 28.3 26.2 Unit-Linked 34% 32% Revenues APE In Euro Billion by segment G/A 17% 27% Savings FY09* FY12 Protection 4
Slide 14: Life & Savings
2012 Full-Year Earnings 2 Life & Savings Jacques de Vaucleroy Global Head of Life & Savings and Health CEO of the Northern, Central and Eastern Europe Region Member of the Management Committee 14 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 15: Life & Savings scope overview
2 Scope overview LIFE & SAVINGS A few features A balanced business mix APE by activity in 2012 3.9 Euro billion net inflows in 2012 Unit-Linked 32% Protection & Health 40% € 6,170 m APE 2012 11 Euro billion benefits paid to Mutual Funds & other 11% G/A Savings 17% Protection & Health customers A div
Slide 16: New business sales by activity
2 New business sales by activity Continued selective growth LIFE & SAVINGS Protection & Mutual Funds G/A Savings Unit-Linked Health & other APE in Euro million APE in Euro million APE in Euro million APE in Euro million 2,445 2,184 1,977 1,809 +7% 1,155 comp. 1,044 +2% comp. 704 -10% 586 comp. +13%
Slide 17: New business sales by market segment
2 New business sales by market segment Acceleration in the second half of the year LIFE & SAVINGS New business sales Mature markets +2% 29% High-growth markets(1) 17% France New Business FY12 Margin 22% Sales (APE) on new business Japan FY12 vs. FY11 comp. 10% € 6,170 m Northern APE 2012 United-Stat
Slide 18: Underlying earnings by activity (pre-tax)
2 Underlying earnings by activity (pre-tax) Two thirds of the earnings come from Protection & Health LIFE & SAVINGS Protection & G/A Savings Unit-Linked Health In Euro million In Euro million In Euro million 2,201 2,273 +3% reported 0% comp. 692 553 504 +25% reported & comp. -4 FY11* FY12 FY11* FY12
Slide 19: Underlying earnings (post-tax)
2 Underlying earnings (post-tax) Strong progression notably driven by the United States LIFE & SAVINGS Underlying earnings Life & Savings In Euro million 2012 Change 2,635 Underlying earnings In Euro at constant by country/region million Forex 2,138 France 706 +14% United-States 522 +107% Japan 374
Slide 20: Property & Casualty
2012 Full-Year Earnings 3 Property & Casualty Jean-Laurent Granier Chairman & CEO of AXA Global P&C CEO of the Mediterranean and Latin America Region Member of the Management Committee 20 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 21: Property & Casualty scope overview
3 Scope overview PROPERTY & CASUALTY A few features A diversified distribution FY12 revenues by channel insurer Agents #4 worldwide 38% 19 euro billion compensation paid in Brokers & other € 28.3 bn FY12 Revenues Direct (2) 2012 for the benefit of 46% 11% #1 10 million customers Partnerships 5% inte
Slide 22: Revenues by market segment
3 Revenues by market segment Very good momentum in high growth markets PROPERTY & CASUALTY In Euro million Mature High growth Direct (2) Total market markets (1) 28,315 27,046 21,609 22,257 o/w Direct in the United-Kingdom -17% 3,843 o/w other countries +9% +2% +3% 3,335 comp. + + = comp. +12% comp.
Slide 23: All-year combined ratio
3 All-year combined ratio Another year of technical profitability improvement PROPERTY & CASUALTY Improved current-year Improved all-year combined ratio combined ratio 99.6% 98.8% -0.8 pt 97.9% 97.6% comp. FY11 FY12 Favorable Prior Year + -0.3 pt comp. Reserve Development FY11 FY12 FY11 FY12 -1.2% -
Slide 24: Focus on large risks
3 Focus on large risks Emerging markets’ development strategy PROPERTY & CASUALTY European Operations #3 player in 90 countries Revenues Combined ratio Underlying earnings Net income in Euro million in Euro million increased by 17% to € 166 m 97.9% 97.8% 150 145 1,986 2,069 -0.2 pt -3% +3% comp. com
Slide 25: Underlying earnings
3 Underlying earnings Slight increase, the Direct segment becomes profitable PROPERTY & CASUALTY P&C underlying earnings Underlying earnings by FY12 Change In Euro at constant country/region million Forex In Euro million France 486 -2% 1,895 1,848 Switzerland 420 +3% Germany 251 +13% Medla region 23
Slide 26: Focus on France
2012 Full-Year Earnings 4 Focus on France Nicolas Moreau Chairman & CEO of AXA France Member of the Management Committee 26 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 27: AXA France in 2012
4 AXA France in 2012 FOCUS ON FRANCE A few features Diversified activities FY12 pre-tax underlying earnings distribution Unit-Linked 9 million customers 16% G/A Savings 19% 9% market share in Property & Casualty #1 insurer Protection & Health Property & In Protection & 27% Casualty Health collective
Slide 28: New business
4 New business High sales in our priority segments FOCUS ON FRANCE Protection & Health Property & Casualty AXA is the Sales increase in 2012 +6% top seller in #1 Revenue Improved Combined Ratio by 0.5 pt in 2012 this segment increase in 2012 +2% 95.1% Success of new products: Entour’Age (dependency)
Slide 29: Operational transformation
4 Operational transformation A year of innovation to better serve the needs of our customers FOCUS ON FRANCE 1 Making clear and transparent commitments Comparing ourselves with our peers 2 and seeking our customers’ ideas and opinions Gestion épargne Service à Providing online differentiating salari
Slide 30: Asset Management
2012 Full-Year Earnings 5 Asset Management Denis Duverne Deputy Chief Executive Officer 30 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 31: Asset Management scope overview
5 Scope overview ASSET MANAGEMENT Complementary business models – A multi-expert model structured by asset – Structured by “Investment Style” class – Focus on growth and value equities, – An expertise in fixed income, equities blend strategies, fixed income Product offer and quantitative management
Slide 32: Assets under management roll-forward
5 Assets under management roll-forward A 56 billion euro increase ASSET MANAGEMENT Assets Under Management (AUM) roll-forward In Euro billion 73 Assets under FY11 FY12 903 management in Euro billion in Euro billion (17) AXA IM Assets managed for AXA 334 365 847 3 Third party 178 188 (4) Total 512 55
Slide 33: Revenues and net flows evolution
5 Revenues and net flows evolution Net flows back into positive territory in the second half of the year ASSET MANAGEMENT Revenues In Euro million FY12 net flows: € +3bn In Euro billion 3 3 0 3,269 3,343 -3 1Q 2012 2Q 2012 3Q 2012 4Q 2012 +2% reported -3% comp. FY12 net flows: € -4bn In Euro billion
Slide 34: Underlying earnings
5 Underlying earnings High growth driven by cost efficiency ASSET MANAGEMENT Underlying earnings Asset Management In Euro million 382 Underlying earnings Change 321 2012 at constant by asset manager in Euro million Forex AXA IM 223 +1% +19% AllianceBernstein 159 +39% reported +14% comp. FY11 FY12 34
Slide 35: Global performance
2012 Full-Year Earnings 6 Global performance Denis Duverne Deputy Chief Executive Officer 35 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 36: Revenues
6 Revenues Performing mature markets and acceleration in high growth markets GLOBAL PERFORMANCE Insurance revenues by region* Revenues by segment Change Asia (excl. Japan) Direct FY11 FY12 3% in Euro million comp. 3% Life & Savings 52,431 55,016 +3% Japan 8% Property & Casualty 27,046 28,315 +3% Fra
Slide 37: Focus on operational efficiency
6 Focus on operational efficiency More competitive and efficient, to the benefit of our customers GLOBAL PERFORMANCE Competitiveness € 0.2 bn potential savings identified in addition to our initial Ambition AXA 1.0 1.7 objectives In Euro billion Well on-track on our productivity gain 0.4 objectives…
Slide 38: Underlying earnings
Underlying earnings 6 Progression reflecting the resilience of our insurance activities GLOBAL and the net recovery of the savings and asset management businesses PERFORMANCE Underlying earnings by business(1) Group underlying earnings In Euro million Property & Casualty & International Insurance 42
Slide 39: Adjusted earnings & net income
6 Adjusted earnings & net income Very good performances excluding exceptional items GLOBAL PERFORMANCE Adjusted earnings In Euro million 4,548 3,460 The increase of the adjusted earnings is mainly driven +31% by the increase of the underlying earnings as well as reported higher realized capital gain
Slide 40: Dividend
6 Dividend Dividend is increasing to 0.72€ per share GLOBAL PERFORMANCE Dividend In Euro per share 0.72 Operating Free Cash Flows up 0.69 to € 4.7 bn Increased adjusted earnings FY11 FY12 To be paid on May 14, 2013 Dividend yield (1) 5.4% Robust balance sheet Payout ratio (2) 40% 40 - AXA - 2012 Ful
Slide 41: Balance sheet indicators
2012 Full-Year Earnings 7 Balance sheet indicators Denis Duverne Deputy Chief Executive Officer 41 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 42: Main financial strength indicators
7 Main financial strength indicators Strengthened solidity reflected by the progression of all indicators BALANCE SHEET 46.4 53.7 Shareholders’ Mainly reflects higher unrealized equity capital gains and solid net income In Euro billion FY11* FY12 233% (1) 188% Solvency I At historical highs ratio FY
Slide 43: General Account invested assets
7 General Account invested assets Good diversification and quality of the investment portfolio BALANCE SHEET Total insurance Changes invested assets in asset allocation Alternative • Net inflows, investment income and maturities: Real Estate investments (2) invested mainly in corporate and governmen
Slide 44: Concluding remarks
2012 Full-Year Earnings 8 Concluding remarks Henri de Castries Chairman & Chief Executive Officer 44 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 45: Main achievements in 2012
8 Main achievements in 2012 CONCLUDING REMARKS Ambition AXA: halfway there and well on track Growth and performance Ambition AXA: successful roll-out Selectivity shift towards products that address Underlying Earnings +9% ever-evolving client needs Adjusted Earnings +28% Acceleration in high
Slide 46: Q&A Session
2012 Full-Year Earnings ? Q&A Session 46 - AXA - 2012 Full-Year Earnings - 21 February 2013
Slide 47: 2012 Key figures
2012 Key figures APPENDICES Change Change in Euro million unless otherwise noted FY11 FY12 on a reported basis on a comparable basis GROUP: KEY FIGURES Total revenues 86,107 90,126 +5% +2% Underlying Earnings 3,772 4,251 +13% +9% Adjusted Earnings 3,460 4,548 +31% +28% Net Income 4,190 4,152 -1% -4%
Slide 48: SRI ratings
SRI ratings APPENDICES Human Resources 53 % (+) 2012 1-year trend 2012 Human Rights 52 % (+) Overall score 74% (sector avg.: 48%) Stable Community involvement 44 % (+) Social 65% (sector avg.: 41%) +2 pts Environment 65 % (+) Environmental 80% (sector avg.: 46%) -5 pts Business behaviour 53 %
Slide 49: Notes
Notes Page 3 1. Full Year 2012. 2. As of December 31, 2012. 3. 2009 to 2012 Interbrand ranking. 4. Full Year 2012 insurance underlying earnings, excluding international insurance. 5. Pre-tax Full Year 2012 underlying earnings, excluding holdings. 6. Including G/A Savings, Unit-Linked and Banking. Pa
Slide 50: Definitions
Definitions 2012 financial statements are subject to completion of audit procedures by AXA’s independent auditors. AXA's FY12 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at December 31, 2012. Adjusted earnings, underlying