IFRS in numbers. June 21, 2005

Transcription

1 IFRS in numbers June 21, 2005

2 Disclaimer and Cautionary Statements Concerning Forward-looking Statements The 2004 IFRS information presented is audited and has been prepared in accordance with the IFRS and IFRIC interpretation issued and effective or early adopted as of June AXA has applied the amendment to IAS 39 regarding the fair value option issued by the IASB on June 16, 2005 and the amendment to IAS 19 regarding employee benefits approved by the ARC, which are both expected to be formally endorsed by the European Commission in the second half of The IFRS standards and IFRIC interpretations that will be applicable at December 31, 2005, including those that will be applicable on an optional basis, are not known with certainty at this time. Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications 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 unknown risks and uncertainties and can be affected by other factors that could cause actual results and AXA s plans and objectives to differ materially from those expressed or implied in the forward looking statements (or from past results). These risks and uncertainties include, without limitation, the risk of future catastrophic events including possible future terrorist related incidents. Please refer to AXA s Document de Référence for the year ended December 31, 2004 and AXA's Annual Report on Form 20-F for the year ended December 31, 2003, for a description of certain important factors, risks and uncertainties that may affect AXA s business. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. IFRS in numbers June 21,

3 Table of Contents 1 : Introduction Page 4 2 : Summary IFRS Impacts on AXA s balance sheet Page 8 3 : Summary IFRS Impacts on AXA s revenues and earnings Page 19 4 : Summary IFRS Impacts on other indicators Page 29 5 : Conclusion Page 34 6 : Appendices Page 37 IFRS in numbers June 21,

4 1. Introduction

5 IFRS implementation in its final stage The conversion process started 30 months ago Strong governance both at central and local levels Strong involvement of staff, both locally and centrally, in the process Milestones for the conversion project: Kick-off: January 2003 AXA IFRS conversion guide: March 2003 First draft of IFRS 2004 Full consolidation: June 2004 Second draft of IFRS 2004 Full consolidation: October 2004 Presentation of IFRS Principles: January 6, 2005 Audited 2004 IFRS numbers: June 21, 2005 IFRS in numbers June 21,

6 Principles and final results are in line with our January indications Limited impact on opening balance sheet Underlying earnings remain broadly unchanged Adjusted earnings are benefiting from higher level of realized gains Net income is benefiting from higher adjusted earnings and absence of goodwill amortization Some volatility is generated and is essentially allocated to net income Fair value option on assets Derivatives accounting IFRS in numbers June 21,

7 IFRS at a glance FY 2004 FGAAP IFRS Change Closing shareholders' equity, gp share (Euro bn) % Opening shareholders' equity, gp share (Euro bn) % Underlying earnings: - Total (Euro million) - Per share* ( ) (83) -1% Adjusted earnings: - Total (Euro million) - Per share* ( ) % Net income: - Total (Euro million) - Per share* ( ) % *on a fully diluted basis IFRS in numbers June 21,

8 2. Summary IFRS impacts on AXA s balance sheet

9 Simplified Balance sheet as of December 31, 2004 Euro Dec. 31, 2004 FGAAP IFRS FGAAP IFRS Goodwill Shareholders Equity, gp share VBI Minority interests (MI) DAC & equivalent SH EQUITY & MI Other intangibles Technical reserves Invested assets Provisions for risks & charges Financing debt Other assets Other liabilities ASSETS LIABILITIES & SH EQUITY Note that Life DAC net of URR, tax, PB and minority interests = Euro 4.9bn Impacts on balance sheet are mainly driven by: Mark to market Scope of consolidation Change in presentation and gross-up of some balance sheet items IFRS in numbers June 21,

10 Main IFRS Impacts on December 31, 2004 total balance sheet At December 31, 2004 (Euro billion) Assets Liabilities SH Eq (1) (1) (1) IFRS in numbers June 21, FGAAP Assets Intangible gross-up MI & scope Mark-to-market Shadow DAC & VBI Pension asset gross-up Other adj. on VBI & GW IFRS Assets FGAAP Liab & SH eq Intangible gross-up MI & scope Mark-to-mkt (PB + DTL) Pension benefits TSS reclass SH equity, gp share IFRS Liab & SH eq

11 Summary IFRS net impacts on December 31, 2004 shareholders equity At December 31, 2004 (Euro billion) (2.2) (0.8) (0.4) 0.8 (0.4) (0.1) FGAAP SH Equity P&C & Int'l equ. reserves DAC & equival. Invested assets deriv. & hedging Sharebased comp. & empl. benefits Business comb. Treasury sh. Compound fin. instr. & TSS reclass. Other Adj. IFRS SH Equity All impacts are group share. IFRS in numbers June 21,

12 Description of IFRS net impacts on December 31, 2004 shareholders equity (1/2) P&C and International Insurance equalization reserves Equalization reserves are eliminated with a Euro 0.3 billion net positive impact. DAC and equivalent For investment contracts with no DPF, DAC is written off, and partly replaced by DOC for contracts that provide Investment Management Services, resulting in a negative impact of Euro 0.1 billion. Invested assets and scope of consolidation The recording of invested assets (excluding real estate and loans) at fair value, the retrospective application of IFRS impairment rules and the extension of the scope of consolidation result in a positive impact of Euro 4.7 billion. Derivatives and hedging Marking to market derivatives results in a positive impact of Euro 0.5 billion as, under French GAAP, unrealized gains on derivatives were not recorded. Share-based compensation and employee benefits Past employee benefits deficit and on-going employee benefits actuarial gains/losses are incorporated in shareholders equity, with a negative impact of Euro 2.2 billion. Note that on-going employee benefits actuarial gains and losses are no longer amortized through P&L. IFRS in numbers June 21,

13 Description of IFRS net impacts on December 31, 2004 shareholders equity (2/2) Business combination Goodwill is booked in the local currency of the acquired entity under IFRS, and is therefore subject to currency fluctuations. This is partly offset by no 2004 goodwill amortization, resulting in a net negative impact of Euro 0.8 billion. Treasury shares Under IFRS, all treasury shares have to be netted to equity at cost, resulting in a negative impact of Euro 0.4 billion. Compound financial instruments (convertibles) & TSS reclassification The equity component (value of the option granted to convert the debt instrument into an equity instrument of the Company) of compound financial instruments is reported in shareholders equity with a positive impact of Euro 0.1 billion. The TSS ( Titres Super Subordonnés, which are undated deeply subordinated notes) issued in 2H04 are reclassified in equity, as they meet the IFRS definition of equity, with a positive impact of Euro 0.6 billion. IFRS in numbers June 21,

14 To isolate IFRS volatility, shareholders equity is shown both with and without change in December 31, 2004 Share capital, of which: - capital - capital in excess of nominal value - treasury shares Euro billion TSS Reserves related to change in FV of AFS OCI investments - Reserves related to change in FV of CF hedges - Other reserves (mainly equity component of compound financial instruments) Translation reserves -0.7 Retained earnings, of which: net income, group share Shareholders' equity at Dec 31, Reversal of change in fair value recorded in shareholders' equity -5.8 Shareholders' equity at Dec 31, 2004 excluding change in fair value Euro 6.6bn Minority Interests 2.5 SH Equity + MI at Dec 31, 2004 excluding change in fair value 25.3 Basis for Gearing IFRS in numbers June 21,

15 Breakdown of AXA s invested assets under December 31, 2004 (Euro billion) IFRS Investments in real estate properties 12.3 Invested Financial assets Loans 18.6 Assets backing contracts where the financial risk is borne by policyholders Total invested assets IFRS in numbers June 21,

16 Focus on Invested Financial Assets: 75% defined as AFS OCI AFS OCI Life & Savings Non life entities Fair value option Life & Savings - UK with-profit Life & Savings - others Non life entities Trading Life & Savings Asset Mgt & OFS Held by consolidated mutual funds/ satellite block Life & Savings - UK with-profit Life & Savings - others Non life entities Euro billion % % % % % Derivatives % TOTAL Invested Financial Assets % Markedto-market through P&L Assets designated at fair value through P&L either held directly or through consolidated mutual funds (satellite block) represent 25% of invested financial assets, of which 90% subject to shadow accounting Breakdown of assets designated at FV through P&L : 48% L&S Non Life 10% 42% L&S WP Subject to shadow accounting IFRS in numbers June 21,

17 Analysis of invested financial assets with related P&L volatility Invested financial assets with change in fair value through P&L, excluding UK WP and Dec. 31, (Euro billion) L&S Non Life TOTAL Fixed Maturities Equity Others TOTAL Satellite investment portfolio with: Mainly Life & Savings assets, which are subject to shadow accounting Tactical asset allocation/active management with total return objective Closely monitored expected return and volatility IFRS in numbers June 21,

18 IFRS impact on technical reserves +Euro 8.3 bn, mainly shadow December 31, 2004 (euro billion) FGAAP IFRS Total technical reserves of which L&S of which Non-life (Euro bn) + Insurance contracts o/w insurance contracts o/w insurance contracts where the financial risk is borne by PH 73.4 Investment contracts 71.9 o/w Investment contracts with DPF 31.7 o/w Investment contracts w/o DPF 0.9 o/w Investment contracts where the financial risk is borne by PH 39.4 Liabilities arising from policyholders participation 19.8 Total unit-linked balance = Euro billion IFRS in numbers June 21,

19 3. Summary IFRS impacts on AXA s revenues and earnings

20 Summary IFRS Impacts on FY04 revenues (Euro billion) FGAAP: Euro 72.2bn IFRS: Euro 67.0bn Asset Mgt & OFS 3.9 P&C and Int l Insurance Life & Savings Asset Mgt & OFS Deposit accounting on L&S investment contracts w/o DPF: UK: Euro - 3.9bn France: Euro - 0.4bn Australia/NZ: Euro -0.3bn OFS revenues are shown net of interest payments under IFRS: Euro - 0.4bn P&C and Int l Insurance Life & Savings 42.3 IFRS in numbers June 21,

21 Summary of differences between French GAAP and IFRS earnings French GAAP IFRS Underlying Earnings + Realized capital gains & losses attributable to shareholders (including Forex impact*) + FGAAP impairments + IFRS impairments Adjusted Earnings + Goodwill amortization + Goodwill impairment and related intangibles amortization + Exceptional operations resulting from change in scope Net Income + Profit or loss (excluding Forex impact*) on financial assets (under fair value option) & derivatives *Except mark-to-market of AXA SA derivatives which are used to hedge subsidiaries underlying earnings against currency fluctuations IFRS in numbers June 21,

22 Snapshot of French GAAP and IFRS FY04 earnings Earnings per share (euro) FY 2004 (Euro million) FGAAP IFRS Diff. FGAAP* IFRS* Underlying earnings (83) Realized capital gains & losses attributable to shareholders and impairments Adjusted Earnings Goodwill and related intangibles (649) (42) 607 Exceptional operations resulting from change in scope Profit or loss on financial assets (under fair value option) & derivatives (258) Net Income *Weighted average number of fully diluted shares was million under FGAAP versus million under IFRS. See appendices for more details on differences between FGAAP and IFRS number of shares. IFRS in numbers June 21,

23 Summary IFRS Impacts on FY04 Underlying Earnings Euro million (88) (12) (65) FY04 FGAAP Underlying Earnings Scope DAC & equival., VBI & liability valuation Share-based comp. Employee benefits P&C & Int'l Ins. Equ. Reserves Others FY04 IFRS Underlying Earnings IFRS in numbers June 21,

24 Description of IFRS impacts on FY04 Underlying Earnings Difference in scope of consolidation IFRS capture earnings on underlying securities when French GAAP reflected dividends distributed by the now consolidated mutual fund and real-estate entities, leading to some timing differences in the emergence of earnings. For investment contracts w/o DPF, notably in the UK, IFRS impacts are: Changes to reserves valuation No VBI amortization, as VBI related to these contracts is written off Lower deferred cost amortization as DAC is written off and only partly replaced by DOC In the UK, overall impact of Euro -21 million. Share-based compensation The fair value at grant date is accrued through Underlying Earnings over the vesting period for equity-settled instruments. The value of the discount offered to employees for Shareplan is expensed. Employee benefits As past actuarial gains & losses (URL) were recognized through the opening balance sheet, they no longer need to be amortized, with a positive impact of Euro 57 million. P&C and International Insurance equalization reserves The elimination of equalization reserves results in a Euro 12 million positive impact. IFRS in numbers June 21,

25 FY04 Adjusted Earnings are higher than FGAAP as higher impairments were recognized in the opening balance sheet Euro million Increased realized capital gains in line with lower historical costs under IFRS (83) Reversal of impairment allowances recorded under French GAAP as they were passed through IFRS opening balance sheet FY04 FGAAP Adjusted Earnings IFRS impact on Underlying Earnings Realized gains attributable to Shareholders FY04 IFRS Adjusted Earnings IFRS in numbers June 21,

26 Summary IFRS impacts on FY04 Net Income Euro million Absence of goodwill amortization under IFRS Natural & FV hedges - Assets under FV option, mainly mutual funds accounts 607 (258) Derivatives, mainly AXA SA Absence of exceptional profit in Alliance Capital - MONY restructuring provision FY04 FGAAP Net Income IFRS impact on Adjusted Earnings Goodwill & related intangibles Exceptional Operations Profit or loss on financial assets (under FV option) & derivatives FY04 IFRS Net Income IFRS in numbers June 21,

27 Exceptional operations decreased by Euro 258 million under IFRS compared to FGAAP as: The FGAAP Euro 112 million positive impact related to rights exercised by former Sanford Bernstein shareholders to sell Alliance Capital units to AXA Financial is eliminated under IFRS, as the provision offsetting the 2000 dilution gain related to the acquisition of Sanford Bernstein was recognized in the 2004 Opening Balance Sheet. In the context of an acquisition, IFRS does not allow the booking in the Purchase GAAP balance sheet of restructuring costs which were not strictly defined by the acquired company at the date of acquisition. As a result, MONY restructuring provisions amounting to Euro 146 million are reflected in IFRS 2004 net income. IFRS in numbers June 21,

28 Focus on 2004 profit/loss on derivatives: AXA SA The Euro 254 million impact on 2004 net income from change in fair value of derivatives is mainly coming from AXA SA: Interest rate hedging strategies considered as speculative under IFRS. In the future, further hedge accounting qualifications might allow to reduce volatility induced by AXA SA interest rate derivatives. Mark-to-market of hedging of underlying earnings foreign exchange exposure (Euro 73 million impact). IFRS in numbers June 21,

29 4. Summary IFRS impacts on other indicators

30 Gearing stands at 42% under December 31, 2004 (Euro billion) FGAAP IFRS - Total Financing debt on balance sheet Reversal of mark-to-market of interest rate derivatives not eligible for hedge accounting* Total financing debt used for gearing ratio Cash AXA SA level Total net debt Shareholders' equity & minority interests Less change in FV recorded in SHE -5.8 Shareholders' equity & minority interests for gearing** 25.3 Total net debt / Shareholders' equity & minority interests** 39% 42% * In the IFRS balance sheet, the financing debt includes the mark-to market of interest rate derivatives. For interest rate derivatives not eligible for hedge accounting, the mark-to-market is reversed as the related debt instruments are not marked-to-market. ** Shareholders equity is adjusted under IFRS to exclude changes in fair value of invested assets or derivatives flowing through shareholders equity (see slide 14 for more details) IFRS in numbers June 21,

31 well within our comfort zone 60% 55% 54% 50% 45% 40% 49% 46% 43% 39% 42% 35% 30% IFRS FGAAP IFRS in numbers June 21,

32 Dividend policy is unchanged: starting yearend 2005, dividend expected to represent 40% to 50% of IFRS adjusted earnings which will benefit from a higher stock of unrealized gains Euro million, except per share amounts Adjusted Earnings IFRS 2004 Dividend paid Pay-out ratio 44% 47% 40% DPS IFRS in numbers June 21,

33 P&C Combined ratio FY ,8% 99,3% 99.3% Reclassification of interests credited on P&C technical reserves relating to annuities from technical result to investment expenses (mainly Workers Compensation in Belgium) 98,8% (0.3%) 98,3% (0.4%) (0.1%) 98.5% 97,8% FGAAP Equalization reserve Interests credited to P&C techn. reserves relating to annuities Employee benefits IFRS IFRS in numbers June 21,

34 5. Conclusion

35 Long live IFRS From now on, all internal processes are centered around IFRS All future financial releases will be on an IFRS basis with comparable numbers HY 05 activity indicators release: July 28, 2005 HY 05 earnings Summary release: September 6, 2005 Detailed release: September 22, 2005 Financial supplement and MD&A focused on underlying earnings IFRS in numbers June 21,

36 As a summary Everything is as expected No change to our operating environment Key performance indicators remain the same Earnings capacity and balance sheet strength are confirmed IFRS in numbers June 21,

37 6. Appendices Balance sheet as of January 1, 2004 Impact on intangible assets as of December 31, 2004 Focus on other liabilities as of December 31, H04 IFRS earnings Number of shares for EPS calculation P&C Combined Ratios by country Earnings by country Glossary

38 Simplified Balance Sheet as of January 1, 2004 ( 2004 Opening Balance Sheet ) Euro January 1, 2004 FGAAP IFRS FGAAP IFRS Goodwill Shareholders Equity, gp share VBI Minority interests (MI) DAC & equivalent SH EQUITY & MI Other intangibles Technical reserves Invested assets Provisions for risks & charges Financing debt Other assets Other liabilities ASSETS LIABILITIES & SH EQUITY Note that life DAC net of URR, tax, PB and minority interests = Euro 4.5 bn IFRS in numbers June 21,

39 Summary IFRS net impacts on 2004 opening shareholders equity At January 1, 2004 (Euro billion) FGAAP SH Equity 0.3 P&C & Int'l equaliz. reserves (0.1) DAC & equival. All impacts are group share. 2.5 Invested assets 0.2 Deriv. & hedging (2.0) Sharebased comp. & empl. benefits (1.3) Business combin. (0.5) Treasury shares 0.1 Compound fin. instr. (0.1) Other Adj IFRS SH Equity IFRS in numbers June 21,

40 Description of IFRS net impacts on 2004 opening shareholders equity (1/2) P&C and International Insurance equalization reserves Equalization reserves are eliminated with a Euro 0.3 billion net positive impact. DAC and equivalent For investment contracts with no DPF, DAC is written off, and partly replaced by DOC for contracts that provide Investment Management Services, resulting in a negative impact of Euro 0.1 billion. Invested assets and scope of consolidation The recording of invested assets at fair value, the retrospective application of IFRS impairment rules and the extension of scope of consolidation result in a positive impact of Euro 2.5 billion. Derivatives and hedging Marking to market derivatives results in a positive impact of Euro 0.2 billion as under French GAAP unrealized gains on derivatives were not recorded. Share-based compensation and employee benefits Past employee benefits deficit is incorporated in the opening shareholders equity, partly offset by the release of the FGAAP provisions for some equity-settled plans, resulting in a total negative impact of Euro 2.0 billion. IFRS in numbers June 21,

41 Description of IFRS net impacts on 2004 opening shareholders equity (2/2) Business combination Goodwill is booked in the local currency of the acquired entity under IFRS and is therefore subject to currency fluctuations, resulting in a negative impact of Euro 1.3 billion. Treasury shares Under IFRS, all treasury shares have to be netted to equity at cost, resulting in a negative impact of Euro 0.5 billion. Compound financial instruments (convertibles) The equity component (value of the option granted to convert the debt instrument into an equity instrument of the Company) of compound financial instruments is reported in shareholders equity with a positive impact of Euro 0.1 billion. IFRS in numbers June 21,

42 Reconciliation of 2004 IFRS opening to closing shareholders equity Euro billion 30 Mark-to-market of AFS OCI (0.3) Reclassification of the TSS issued in 2H04 as it meets the IFRS definition of equity IFRS opening SH Equity 2004 IFRS Net Income Ch. In FV through SH Equity Employee benefits actuarial gains/losses Treasury shares TSS Others 2004 IFRS closing SH Equity IFRS in numbers June 21,

43 Detailed shareholders equity roll forward (Euro billion) Share capital Other reserves Translation reserve Retained earnings Total MI Total Equity Balance at Jan 1, Impact of transactions with SH** (0.7) 1.8 S O R I E* Others Reserves related to Changes in FV through SHE CTA of the year (0.7) (0.7) Employee benefits actuarial gains (losses) (excl. CTA impacts) (0.3) (0.3) Net income of the period Total SORIE (0.7) Balance at Dec 31, (0.7) *SORIE = Statement Of Recognized Income and Expense **SH = Shareholders IFRS in numbers June 21,

44 Impact on intangible assets at December 31, dec. 31, 2004 (Euro billion) FGAAP Main IFRS impacts IFRS Goodwill Translation of goodwill in local currency - No amortization of goodwill in 2004* - Others VBI Gross up of tax - Write-off of VBI related to investment contracts w/o DPF - Shadow VBI DAC & equivalent Gross up of URR** - Shadow DAC Excluding reclassifications (gross-up of DAC URR and VBI tax), intangibles are down Euro 2.4 billion Life DAC net of URR, Tax, PB and MI is 4.9 billion VBI net of Tax and MI is 1.9 billion * 2004 FGAAP net income included Euro 308 million goodwill amortization related to Bernstein put exercises in exceptional operations, which is reversed under IFRS. ** URR (Unearned Revenue Reserves) represent the deferral of fees charged to PH which are to be recognized over the life of the contract, on the same basis as the amortization of DAC. DAC was previously shown net of URR on the balance sheet. Under IFRS, it will be shown gross. IFRS in numbers June 21,

45 Focus on other liabilities at December 31, Dec. 31, 2004 Euro billion FGAAP Main IFRS Impacts IFRS Other liabilities MI* for consolidated investment funds CDO notes from CDO s consolidation Deferred tax: gross-up of tax on VBI Deferred tax: other Others (mainly reclassification) *MI = Minority Interests IFRS in numbers June 21,

46 Snapshot of French GAAP and IFRS 1H04 earnings Earnings per share (euro) 1H04 (Euro million) FGAAP IFRS Diff. FGAAP* IFRS* Underlying earnings (37) Realized capital gains & losses attributable to shareholders and impairments Adjusted Earnings Goodwill and related intangibles (337) (38) 299 Exceptional operations resulting from change in scope Profit or loss on financial assets (under fair value option) & derivatives (65) (17) (17) Net Income *Weighted average number of fully diluted shares was million under FGAAP versus million under IFRS. IFRS in numbers June 21,

47 Summary IFRS Impacts on 1H04 revenues (Euro billion) FGAAP: Euro 37.3bn IFRS: Euro 34.9bn Asset Mgt & OFS 1.9 P&C and Int l Insurance Life & Savings Asset Mgt & OFS - Deposit accounting on L&S investment contracts w/o DPF: UK: Euro 1.8bn France: Euro - 0.2bn Australia/NZ: Euro -0.1bn P&C and Int l Insurance Life & Savings OFS revenues are shown net of interest payments under IFRS: Euro - 0.2bn IFRS in numbers June 21,

48 Summary IFRS Impacts on 1H04 Underlying Earnings Euro million (73) (15) (15) H04 FGAAP Underlying Earnings Scope DAC & equival., VBI & liability valuation Share-based comp. Employee benefits P&C & Int'l Ins. Equ. Reserves Others 1H04 IFRS Underlying Earnings IFRS in numbers June 21,

49 Summary IFRS Impacts on 1H04 Adjusted Earnings Euro million (37) - Reversal of Impairment allowances recorded under French GAAP as they were passed through IFRS opening balance sheet (Euro +130m) - Increased realized capital gains in line with lower historical costs under IFRS, more than offset by Forex impact (Euro -22m) H04 FGAAP adjusted earnings IFRS impact on underlying earnings Realized gains attributable to Shareholders 1H04 IFRS adjusted earnings IFRS in numbers June 21,

50 Summary IFRS Impacts on 1H04 Net Income Euro million (65) (15) H04 FGAAP Net Income IFRS impact on Adjusted Earnings Goodwill & related intangibles Exceptional Operations Profit or loss on financial assets (under FV option) & derivatives 1H04 IFRS Net Income IFRS in numbers June 21,

51 Number of shares for FY04 EPS calculations: French GAAP vs. December 31, 2004 (in million shares, except when otherwise noted) BASIC: FGAAP delta IFRS Weighted avg number of outstanding shares Reversal of FGAAP restatement following the ORAN (-14.5m) - Deduction of treasury shares under IFRS (-25.9m) DILUTION IMPACTS: - on earnings (Euro million) on weighted average number of shares Dilution impact of 2 convertible notes that become dilutive as IFRS net income is higher than FGAAP FULLY DILUTED: Weighted avg number of outstanding shares IFRS in numbers June 21,

52 Number of shares for 1H04 EPS calculations: French GAAP vs. June 30, 2004 (in million shares, except when otherwise noted) BASIC: FGAAP delta IFRS Weighted avg number of outstanding shares Deduction of treasury shares under IFRS (-29.0m) DILUTION IMPACTS: - on earnings (Euro million) on weighted average number of shares Dilution impact of 1 additional convertible note becoming dilutive in IFRS as compared to FGAAP FULLY DILUTED: Weighted avg number of outstanding shares IFRS in numbers June 21,

53 IFRS detailed impact on FY04 P&C combined ratio FY 2004 Combined ratio FGAAP Impact of equalization reserve Interests credited to P&C technical reserves relating to annuities Employee benefits IFRS France 99.3% 0.0% -0.3% -0.2% 98.8% Germany 98.8% 0.1% -0.1% 98.8% Belgium 103.0% -0.9% -4.4% -0.4% 97.3% United Kingdom & Ireland 98.2% -0.7% -0.1% 97.4% Southern Europe 99.5% -0.1% -0.1% 0.0% 99.3% Other countries 100.0% -0.1% -0.1% 99.8% TOTAL P&C 99.3% -0.3% -0.4% -0.1% 98.5% IFRS in numbers June 21,

54 IFRS detailed impact on 1H04 P&C combined ratio 1H04 Combined ratio FGAAP Impact of equalization reserve Interests credited to P&C technical reserves relating to annuities Employee benefits IFRS France 99.9% -0.3% -0.1% 99.5% Germany 99.5% 0.0% -0.3% 99.2% Belgium 100.3% -0.9% -4.3% -0.2% 94.9% United Kingdom & Ireland 98.5% -0.7% -0.3% 97.5% Southern Europe 99.4% 0.0% -0.3% 0.0% 99.1% Other countries 99.9% -0.2% 0.0% 99.7% TOTAL P&C 99.4% -0.3% -0.4% -0.2% 98.5% IFRS in numbers June 21,

55 FY04 earnings by country FGAAP vs. IFRS FY 2004 Underlying earnings Adjusted earnings Net income Euro million IFRS FGAAP Var. IFRS FGAAP Var. IFRS FGAAP Var. Life & Savings France US UK Japan Germany Belgium Southern Europe Other Countries of which Australia / New Zealand of which Hong-Kong Property & Casualty France Germany Belgium UK & Ireland Southern Europe Others countries International Insurance AXA RE AXA CS Assurance Others Asset Management Alliance Capital AXA Investments Managers Other financial services Holdings TOTAL IFRS in numbers June 21,

56 1H04 earnings by country FGAAP vs. IFRS 1H04 Underlying earnings Adjusted earnings Net income Euro million IFRS FGAAP Var. IFRS FGAAP Var. IFRS FGAAP Var. Life & Savings France US UK Japan Germany Belgium Southern Europe Other Countries of which Australia / New Zealand of which Hong-Kong Property & Casualty France Germany Belgium UK & Ireland Southern Europe Others countries International Insurance AXA RE AXA CS Assurance Others Asset Management Alliance Capital AXA Investments Managers Other financial services Holdings TOTAL IFRS in numbers June 21,

57 Glossary AFSoci: Available For Sale, with change in fair value flowing through shareholders equity ARC: Accounting Regulatory Committee DAC: Deferred Acquisition Costs DOC: Deferred Origination Costs DPF: Discretionary Participation Feature FGAAP: French Generally Accepted Accounting Principles IFRS: International Financial Reporting Standards IASB: International Accounting Standards Board IFRIC: International Financial Interpretation Committee MI: Minority Interests PB: Policyholders participation URR: Unearned Revenue Reserve SH: Shareholders SHE: Shareholders equity SORIE: Statement Of Recognized Income and Expense VBI: Value of Business In force WP: With-Profits IFRS in numbers June 21,

58