AXA. Thomas Buberl Group CEO. Goldman Sachs European Financials Conference Frankfurt June 6, 2018

Transcription

1 AXA Thomas Buberl Group CEO 1 Goldman Sachs European Financials Conference Frankfurt June 6, 2018

2 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. 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 AXA s actual results to differ materially from those expressed or implied in the forward-looking statements. Please refer to Part 4 - Risk factors and risk management of AXA s Registration Document for the year ended December 31, 2017, for a description of certain important factors, risks and uncertainties that may affect AXA s business and/or results of operations. 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, except as part of applicable regulatory or legal obligations. This document does not constitute an offer to the public in France, nor a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended, in particular by Directive 2010/73/EU to the extent such Directive has been transposed in the relevant member State of the European Economic Area (together, the Prospectus Directive ). With respect to each Member State of the European Economic Area which has implemented the Prospectus Directive (the Member State ), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring a publication of a prospectus in any Member State. As used in this paragraph, the expression offer to the public in relation to any securities in a given Member State means any communication to persons in any form and by any means, presenting sufficient information on the terms of the offer and the securities to be offered, so as to enable an investor to decide to purchase or subscribe for these securities, as this definition be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, and includes any relevant implementing measure in each Member State. These selling restrictions with respect to Member States apply in addition to any other selling restrictions which may be applicable in the Member States who have implemented the Prospectus Directive. This document does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. 2

3 Making significant progress on our transformation journey Focus and Transform > Focus on fewer countries, with emphasis on scale and potential > Shift our portfolio towards preferred segments to grow > Improve the balance between technical and financial margin > Simplify the organization to get closer to the customer > Scale innovation ecosystem to build new business models 3

4 US IPO successful completion in line with our XL financing plan US IPO transactions In USD billion > IPO proceeds in line with our XL financing plan as announced on March 5, 2018 > Largest IPO in the insurance sector since 2002 Sale of AEH shares Mandatory exchangeable bonds Over-allotment options exercised in full by underwriters Overall proceeds from the IPO 1 > Retained potential upside (ca. 70% of ownership) for subsequent sell downs 2 Overall proceeds of USD 4.02 billion (or Euro 3.26 billion 3 ) 4 All notes are on page 12 of this document

5 XL Group acquisition financing secured In Euro billion > Financing elements in line with guidance ca > Not dependent on the issuance of any additional debt (given additional existing resources available to finance the remaining Euro 1 billion) Cash at hand US pre-ipo transactions 2 US IPO proceeds 3 Sub debt Transaction value XL financing secured 5 All notes are on page 12 of this document

6 XL Group acquisition well on track > Increase in CAT protection ahead of the next hurricane season Moving towards a predominantly P&C, Health and Protection company 2016 pre-tax underlying earnings, adding XL Group and excluding AXA US > All insurance and antitrust filings are in process > Integration workstreams well underway > New XL leadership team taking shape > XL Shareholder meeting to approve the transaction to be held on June 6, 2018 > Closing expected in H % P&C 10% Health 4% Asset management 4 14% Savings 3 New AXA 1,2 21% Protection 6 All notes are on page 12 of this document

7 Deleveraging a key priority for AXA with ample flexibility Debt gearing ca. 28% or below by 2020E retaining financial flexibility over the plan period ca. 32% > ca. Euro 1 billion of surplus cash per year (after dividend, financing and holding costs) < 28% IPO only IPO and potential subsequent selldowns > ca. Euro 2.1 billion 1 of cash upstream from the transformation of Swiss Group Life business over next three years > Potential disposals > Continued focus on inforce and other management actions FY18E FY20E 7 All notes are on page 12 of this document

8 1Q18 Activity indicators Continued focus on preferred segments Performance by geography Performance in preferred segments France Total revenues up 8% - excellent quarter, strong growth in L&S and Health Health revenues +7% Europe Asia Strong Solvency II ratio New Business Value up 3%. Continued growth and shift in business mix. Protection APE +9% 221% up 16 points from FY17 P&C Commercial revenues +2% 8

9 New business models enhancing growth agenda with disruptive partnerships Extension of partnerships Leading provider for platform solutions > Set protection standards for independent workers > Rolled out in 25 countries > Building affinity market place May 23, 2018 May 29, 2018 > Enabling biggest ride-sharing platform > Pan-European offering > On-demand and embedded products Served customers in over 100 million life moments in

10 Financial targets reaffirmed with focus on deleveraging Ambition 2020 targets reaffirmed Additional guidance 3% - 7% UEPS CAGR % - 14% Adjusted ROE Euro billion cumulative FCF 2 170% - 230% Solvency II ratio 3 range Supporting our 45% - 55% payout ratio guidance Earnings dilution neutralized in FY18, dilution from US IPO expected to be neutralized by acquisition of XL Group 190% - 200% Solvency II ratio at the end of 2018 post XL Group acquisition 28% or below Debt gearing by All notes are on page 12 of this document

11 11 Thank You

12 Notes Page 4 1. Before fees and expenses of the offerings 2. Potential upside for subsequent sell downs subject to market conditions 3. Based on foreign exchange rate as of March 5, 2018 (1 EUR = 1.23 USD, source: Bloomberg) Page 5 1. Based on foreign exchange rate as of March 5, 2018 (1 EUR = 1.23 USD, source: Bloomberg) 2. As announced in the press release on April 25, 2018 related to the completion of AXA s US pre-ipo reorganization transactions 3. Before fees and expenses of the offerings Page pre-tax underlying earnings excluding AXA SA 2. New AXA based on 2016 pre-tax underlying earnings excluding AXA SA and AXA US (Life & Savings and AB), and including 100% of XL Group. For XL Group, earnings are based on 2016 operating net income before taxes converted with a 2016 average foreign exchange rate of 1.11 USD per Euro 3. Savings includes G/A Savings, Unit-Linked and Mutual funds & Other 4. Asset Management and other: includes AXA IM and other insurance and non-insurance entities of AXA Page 7 1. As announced in the press release on April 10, 2018 and based on foreign exchange rate as of April 6, 2018 (1 Euro = CHF, source: Bloomberg) Page Compounded annual growth rate 2. Adjusted RoE and free cash flows are non-gaap financial measures. For further information, please refer to the reconciliation of adjusted ROE to the financial statements and its definition in the Glossary, which are provided in AXA s 2017 Activity Report (respectively, on page and pages 69 to 77). 3. The Solvency II ratio is estimated based on AXA s internal model calibrated based on adverse 1/200 years shock and assuming US equivalence. For further information on AXA s internal model and Solvency II disclosures, please refer to AXA Group s SFCR for FY2016, available on AXA s website ( 12