Professional Documents
Culture Documents
Simplify to
accelerate
1
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 AXAs 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 AXAs Registration Document for the year ended
December 31, 2016, for a description of certain important factors, risks and uncertainties that may affect AXAs 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.
In addition, this report refers to certain non-GAAP financial measures, or alternative performance measures, used by management in analyzing AXAs operating
trends, financial performance and financial position and providing investors with additional information that management believes is useful and relevant
regarding AXAs results. These alternative performance measures generally have no standardized meaning and therefore may not be comparable to similarly
labelled measures used by other companies. As a result, none of these non-GAAP financial measures should be considered in isolation from, or as a substitute
for, the Groups consolidated financial statements and related notes prepared in accordance with IFRS. The Non-GAAP measures underlying earnings and
adjusted earnings are reconciled to net income on pages A16 and A17 of AXAs 1H17 results presentation. Other non-GAAP financial measures used in this
presentation are defined in the Glossary set forth in AXAs 1H17 Activity Report (pp. 83-88).
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated
entity, or the solicitation of an offer to buy any such securities, in any jurisdiction. A registration statement relating to shares of common stock of AXA Equitable
Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be sold nor may offers to
buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
2017 Introduction
Thomas Buberl
US IPO update
George Stansfield | Grald Harlin
Coffee break
4
Vision for the future of insurance
Empower people to
live a better life.
5
AXA: a global base with strong local market positions
France
France Spain
Asia
1H17 Switzerland Hong Kong
underlying
earnings1 Belgium Thailand
UK & Ireland Indonesia
US
Europe Germany Mexico
107
GLOBAL
INSURANCE
BRAND
FOR THE 9TH
CONSECUTIVE
million customers (FY16) YEAR3
6 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Simplify to accelerate
8 AXA Group Investor Day | November 14, 2017 Refer to page 59 for more details. All notes are on pages 63 and 64
Shift our portfolio towards preferred segments to grow
9 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Improve the balance between technical and financial margins
21% of
33% of
Group UE1
France Europe Group UE1
Asia2 16% of
Group UE1
6% of Group UE1
US AXA IM
(incl. AB)
16% of
Group UE1
International3 and AXA CS
6% of
Group UE1
13 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
A new leadership team to accelerate our transformation journey
Thomas Buberl,
Chief Executive Officer Gerald Harlin,
Jacques de Peretti, AXA Deputy CEO
Chairman and and CFO
CEO AXA France
Antimo Perretta, George Stansfield,
CEO AXA Europe Deputy CEO
and General Secretary
Karima Silvent,
Gordon Watson, Group HRD
CEO AXA Asia*
15
Evolution of governance through AXAs history and where we are today
30 years of success
with evolving governance AXA SA
Expand: 1990-2000
GLOBAL BUSINESS LINES
Two-tier: holding company with
investments in subsidiaries
REGION
Consolidate: 2000-2009
Three-tier: holding company with ENTITY
regions and subsidiaries
CURRENT ENGINES
Adapt governance to strategic segmentation
(10 countries, 84% of earnings1)
17 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
led us to delayer and simplify the organization
Five One
geographies corporate center
US Asia
Risk & control
International
Entities more
2017 2018
Consultation with social partners
Implementation
20 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
3
US IPO UPDATE
21
Contents
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
22 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
S-1 provides an extensive view on the US operations to be listed
Prospectus summary
Risk Factors
Dividend Policy
The Reorganization Transactions
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
23 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Simplified scope1 of AXA Groups operations for intended IPO
Ca. 4,700 affiliated AXA Advisors and ca. 200 Bernstein Financial Advisors
Access to more than 150,000 financial professionals (broker dealers, banks, P&C firms, general brokerage)
All notes are on pages 63 and 64
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
24 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
AXA Group on track towards IPO of US operations in 1H 2018
Selected milestones
September
2017 2018
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
25 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Contents
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
26 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Key restructuring transactions AXA Group is undertaking pre-IPO
A
Financing and internal loans repayment
B
Recapture of VA business and capitalization
C
Sale of AB units from AXA Group
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
27 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Pre-IPO restructuring: impact on AXA Group
A
USD 4.4 billion
A External financing
Financing and internal loans repayment
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
28 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Pre-IPO restructuring: impact on AXA Group
B Recapture of VA business and
USD 4.4 billion
A External financing capitalization
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
29 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Pre-IPO restructuring: impact on AXA Group
C
USD 4.4 billion
A External financing
Sale of AB units from AXA Group
New
structure
AXA Financial, Inc. CTE98 VA capitalization
~350% non-VA RBC ratio
AXA Equitable EQ AZ Life Re resulting in
Life Insurance Company
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
32 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Contents
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
33 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Anticipated changes to US hedging strategy: AXA Groups perspective
12
10
8 Resilient VA cash flows under
a range of scenarios
2.8% end of 2017 2.8% end of 2017 1.8% end of 2017 1.8% end of 2017
Interest rates2
3.4% end of 2027 4.9% end of 2027 2.1% end of 2027 2.1% end of 2027
The projected VA cashflows above are based on a number of important market and actuarial assumptions, in particular, relating to the performance of the capital
markets and actuarial and policyholder behavior experience, and represent estimated present value of the in-force variable business based on historical experience. To
the extent actual experience deviates from these assumptions, VA cashflows could materially deviate from the examples above.
All notes are on pages 63 and 64
This presentation is not intended, and should not be construed, to be an offer of any securities of AXA S.A. or AXA Equitable Holdings, Inc. or any other affiliated entity, or the solicitation of an offer to buy any such securities, in any
35 AXA Group Investor Day | November 14, 2017 jurisdiction. A registration statement relating to shares of common stock of AXA Equitable Holdings, Inc. has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. Such shares may not be
sold nor may offers to buy be accepted prior to the time such registration statement becomes effective in accordance with the rules of the U.S. Securities and Exchange Commission.
Post-IPO implications for AXA Group
Positive outlook for cash, limited impacts on Solvency II and IFRS
USD 2.0 billion from pre-IPO transactions, before any potential proceeds from IPO
Cash Resilient VA cash flows across a range of scenarios
40% - 60% payout ratio1 targeted by AXA Equitable Holdings, effective 2018
37
4
Cash and Solvency II
38
Insights on our cash generation capacity and Solvency II operating return
Connection between operating free cash flows and SII operating return
L&S future cash flows L&S cash flows from illustrative new business*
36 L&S inforce future cash flows
32
28
24
20
16
12 Ambition 2020
8
4
0
Euro 28-32 billion
2016-2020E +6-10 years +11-15 +16-20 +21-25 +26-30 +31-35 +36-40 +41-45 +46-50 2016-2020E cumulative
years years years years years years years years
Group Operating FCF
Reaffirmed
* Based on a simplified assumption that FY16 new business is repeated each and every year from 2017 onwards.
L&S inforce undiscounted L&S inforce risk neutral L&S inforce future profits
future profits discounted future profits included in SII AFR
41 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
and will emerge in the form of operating FCF and AFR over time
In Euro billion
Cash Solvency II
42 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Link between Operating FCF and Solvency II operating return
In Euro billion
2016 2016 change in
Operating FCF AFR
Life &
2.9
Savings
5.1
A. Including realized capital gains and favorable claims experience (Euro 0.6 billion) B. Change in P&C required capital C. Holding costs
43 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Ambition 2020 Confidence in delivery of targets
24-27
segments and/or returned to shareholders
Cumulative 2016-2020E
+
Potential US IPO proceeds
44 AXA Group Investor Day | November 14, 2017
5
AMBITION 2020 UPDATE
45
Ambition 2020 earnings growth levers
Building blocks of underlying earnings per share
+ 3% =
-5%
Efficiency Growth Technical M&A 2015 2020E
margin UEPS CAGR
A B C D E
3%
0.41%
1.5% 10Y German Bund
+36 bps1 Interest rates
higher since June 21, 2016 headwinds
-1%
0%
June 2016 2020
10Y US Treasuries
5%
4%
2.40%
10Y US Treasuries
3% -5%
+69 bps1
2% higher since June 21, 2016
0%
June 2016 2020
47 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
B Leaner central functions help accelerate delivery on efficiency target
In Euro billion
2.1
25% reduction
in central function costs
FY16-1H17
0.5 achievement
48 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
C Update on contributions from growth in preferred segments
+5%
First 1.5 years1
+3%
First 1.5 years1
+1%
First 1.5 years1
+6%
First 1.5 years1
49 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
D Technical excellence successfully leading to improved profitability
Ambition 2020
D Technical excellence successfully leading to improved profitability
3% - 7%
UEPS CAGR1 Reaffirmed
51 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Q&A
52
6
CONCLUSION
53
Vision for the future of insurance
Empower people to
live a better life.
54
Simplify to accelerate
+5% 6.2
2020
2020
3% billion 28 - 32
- Euro billion
1H17 vs. 1H16 7% FY16 cumulative FCF
UEPS CAGR1
14.7% 12%
-
14%
201% 170%
-
230%
1H17 9M17 Target range
56 AXA Group Investor Day | November 14, 2017 All notes are on pages 63 and 64
Thank You
57
6
Appendices
58
AXA entities classification
CURRENT ENGINES HIGH POTENTIALS SMALLER ENTITIES
(10) (6) (26)
Belgium Algeria Lebanon
Brazil
France AXA Bank Belgium Luxembourg
Azerbaijan Malaysia
Germany China
Cameroon Morocco
Hong Kong Colombia Nigeria
Indonesia CZ & Slovakia Poland
Italy
Egypt Russia
Japan
Mexico Gabon Senegal
Spain Greece Singapore
Gulf region South Korea
Switzerland Philippines
India Tunisia
UK & Ireland Ivory Coast Turkey
Thailand Jordan Ukraine
US and AB
AXA Corporate Solutions AXA Investment Managers AXA Art AXA Assistance
99.5% 100%
Coliseum Reinsurance
0.47% AXA Financial, Inc.b ~0.03%
Company
AXA AXA
AllianceBernstein AXA AXA Equitable Funds
Network, Advisors,
Corporation Distributors LLC Management Group, LLC
LLC LLC
a. Directly and indirectly
b. We intend to merge AXA Financial, Inc. into AXA Equitable Holdings, Inc. after the consummation of the offering
c. As of December 31, 2016, AXA Financial, Inc. and its subsidiaries economic interest in AB was approximately 45%
Public
AXA S.A
Stockholders
AXA AXA
AllianceBernstein AXA AXA Equitable Funds
Network, Advisors,
Corporation Distributors LLC Management Group, LLC
LLC LLC
a. We intend to merge AXA Financial, Inc. into AXA Equitable Holdings, Inc. after the consummation of the offering
b. For details on our economic ownership and general partnership interest in AB, see the following chart in the next slide
100%
AllianceBernstein
1.0% 28.0% 0.1%
Corporationb
1.0% 34.9%
AllianceBernstein L.P.c
a. We intend to merge AXA Financial, Inc. into AXA Equitable Holdings, Inc. after the consummation of the offering
b. AllianceBernstein Corporation is the general partner of AB Holding and ABLP
c. 1.1% held by unaffiliated holders
Page 41
1. The boundaries of contracts principle set by the Solvency II rules define which future premiums expected from inforce contracts already underwritten may be included in the projection
2. The market value margin is the present value of the cost of future economic capital requirements for non-hedgeable risks. The MVM is a part of the market-consistent value of liabilities
Page 42
1. 2016 numbers are consistent with the Embedded Value and AFR report. For illustrative purposes we have included an estimated MVM release from inforce (ca. Euro 0.7 billion) and MVM consumption for new business (ca. Euro 0.7
billion) separately in the chart. These two amounts offset each other in the FY16 EV and AFR report and were captured in the line Change in market value margin.
Page 43
1. Combined impacts from operating change in AFR (Euro +6.9 billion) and change in SCR (Euro +0.6 billion) in FY16
Page 47
1. Market data as of November 10, 2017
Page 48
1. Subject to social partners approval
Page 49
1. Based on weighted contribution of growth rates on a comparable basis in FY16 and 1H17
2. Commercial lines excl. Group health
Page 51
1. Underlying earnings per share compound annual growth rate
Page 56
1. Compound annual growth rate
2. Adjusted ROE: Return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average shareholders equity excluding undated debt and reserves related to change in fair value