AXA INVESTMENT MANAGERS

Transcription

1 AXA INVESTMENT MANAGERS Entering a new phase of growth Investor Day November 20, 2014 Andrea ROSSI CEO AXA Investment Managers Member of the AXA Group Executive Committee

2 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 unknown risks and uncertainties. Please refer to the section Cautionary statements in page 2 of AXA s Document de Référence for the year ended December 31, 2013, 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.

3 TODAY S KEY MESSAGES LEADING GLOBAL ASSET MANAGER WELL POSITIONED FOR THE NEXT PHASE OF GROWTH AXA IM VISION SUPPORTED BY CLEAR STRATEGIC PRIORITIES CONCLUDING REMARKS F3

4 Leading global asset manager well positioned for the next phase of growth

5 AXA IM A SUSTAINABLE GROWTH ENGINE WELL POSITIONED FOR 3 rd PARTY SUCCESS Structurally attractive business Attractive RoE driven by low capital requirements Strong Free Cash Flows generation Exposure to financial markets 16% RoE 1 1bn Free Cash Flows 2 generated over Strategic to insurance activities Investment performance excellence Wide range of asset classes / strategies Natural offset to interest rate exposure on insurance business 74% of AXA assets managed by AXA IM 3 Benefiting from parent synergies Stable insurance asset base Innovation support and seed money capacity Access to insurance distribution and developments 3.7bn 4 AuM raised in the last 2 years through AXA seed money Attractive 3 rd party franchise Provide investment performance and leading innovation Benefit from scale and operational leverage Leverage ALM know-how for liability driven clients 8.0bn of 3 rd party Net New Money 5 in 9M14 F5 All notes are on page F19 of this document

6 A LEADING GLOBAL ASSET MANAGER WITH AN ACTIVE AND DIVERSIFIED PORTFOLIO OF EXPERTISE Figures as at 09/30/2014 Strong contribution from 3 rd party business Balanced portfolio of active expertise One of the world s largest active asset managers Ca. 2,500 employees worldwide located in 28 cities and in 21 countries A well balanced multiasset player providing active and smart beta strategies only 1/3 of assets managed for third-party clients accounting for more than 50% of AXA IM revenues A strong track record in developing specialized franchises Assets: Euro 607 billion 66% 9M14 Revenues: Euro 825 million 1 44% AXA Insurance companies 34% 56% Third-party clients Asian JVs 15% Real Estate 9% Structured Finance 2% Solutions (MACS) 2 11% Quantitative Rosenberg 5% Structured Finance 3% Solutions (MACS) 2 6% Quantitative Rosenberg 2% Judgmental Framlington 3% Third-party assets: Euro 203 billion AXA assets: Euro 403 billion Fixed income 36% Judgmental Framlington 21% Real estate 9% Fixed income 77% Listed Fixed Income Listed Equities Multi-Assets Joint Ventures Alternatives F6 All notes are on page F19 of this document

7 WITH STRONG TRACK RECORD OF INVESTMENT PERFORMANCE ACROSS THE BOARD Figures as at 09/30/2014 Number of Funds ranked in first 2 quartiles 1 Annualized rolling outperformance 2 Fixed Income 3 years 67% 5 years 82% 3 years 0.5% 5 years 0.5% Judgmental Framlington 3 years 73% 5 years 94% 3 years 1.4% 5 years 2.4% Listed Equity Quantitative Rosenberg 3 years 78% 5 years 82% 3 years 0.7% 5 years 0.6% Solutions (MACS) 3 3 years 60% 5 years 75% 3 years 0.2% 5 years 0.5% Alternatives Alternative strategies (i.e. AXA Real Estate and AXA Structured Finance) performing above 1 year and 3 years benchmark and targets (e.g. 93% of AXA Structured Finance funds above IRR targets) F7 All notes are on page F19 of this document

8 ENABLING RESILIENT FINANCIAL PERFORMANCE WHILE POSITIONING FOR THE NEXT PHASE OF GROWTH Growing assets under management AUM 1 in Euro billion Resilient and growing profits Underlying Earnings 1 in Euro million ca bn FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 9M14 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 1H14 F8 All notes are on page F19 of this document

9 AXA IM vision supported by clear strategic priorities

10 AXA IM VISION IS SUPPORTED BY CLEAR STRATEGIC PRIORITIES GROWTH Capture multiple sources of growth through targeted developments CLIENT CENTRIC OFFERING Enhance client centric business model across the full value chain «BE A WORLD-CLASS LEADER CONSISTENTLY SATISFYING CLIENT NEEDS» OPERATIONAL EXCELLENCE Leverage the size and scope of our operations to drive operational excellence CULTURE Build One AXA IM F10

11 GROWTH Capture multiple sources of growth through targeted developments Development priorities Capture opportunities in selected high growth markets Deepen presence where AXA IM is already strong through segmented approaches Target mature markets in which AXA IM is not playing at its fair market share Serve and support AXA around the globe Reinforce historical strong position through segmented approach Europe: Maintain market share with Institutional clients, selectively target Retail and Defined-Contribution and better leverage AXA distribution capacity Build on existing presence / capabilities US & Canada: Develop Institutional and Retail segments with an initial focus on AXA IM successful US expertise Sovereign Wealth Funds: Reinforce globally, particularly in Middle East Develop further distribution coverage Asia (including Japan): Benefit from growth of wealth accumulation, leverage the development of AXA Group and accelerate in Japan Latin America: Target sources of long term growth and leverage AXA Group presence Nordics: Main focus on pension funds and insurance companies F11

12 CLIENT CENTRIC OFFERING Enhance client centric business model across the full value chain INNOVATION MANUFACTURING Constant focus to meet and anticipate client demands Leading in industry innovation with circa 10 new strategies launched per year Tailoring existing offering to specific client needs: Specific share classes e.g. Solvency 2 friendly Mainstreaming ESG 1 criteria for AXA assets Align investment capabilities to the way clients manage their investments Full scope of credit offering in one single expertise with the integration of AXA Structured Finance capabilities into AXA Fixed Income Creation of a Solutions hub In Euro billion Continuously delivering on client satisfaction AXA IM ranking ( ) Greenwich Quality Index 1 st quartile in Investments 1 st two quartiles for Service and in overall ranking Net New Money CLIENT COVERAGE Ensure comprehensive approach Creation of dedicated transversal business lines for Retail/Wholesale and Institutional clients Reinforcing client servicing through a more developed local coverage -21 FY10-4 FY11 0 FY12 FY13 9M14 F12 All notes are on page F19 of this document

13 PIONEERS ON SMARTBETA TM PRODUCTS Innovation at the service of client needs Client need Innovative solution: SmartBeta Well diversified and low cost way to improve financial markets return being more efficient than passive Capitalizing on market inefficiencies avoiding inherent drawbacks of indexing and optimized implementation SmartBeta Equity Leveraging AXA Rosenberg capabilities Leader in systematic investing since 1985 Data platform with over 40 years of granular data history for 20,000 companies Delivering investment performance: 1 year outperformance at 1,16% 1 SmartBeta AUM since inception in Euro billion SmartBeta Equity SmartBeta Credit 4.3 SmartBeta Credit Leveraging AXA Fixed Income capabilities years of successful experience in running low-risk, lowturnover portfolios Access to high quality data and broad credit coverage combined with strong risk management culture and efficient execution Delivering investment performance: all strategies getting strong support from consultants 0.2 FY12 FY13 9M 14 F13 All notes are on page F19 of this document

14 FOCUS ON GLOBAL CREDIT CONTINUUM OFFERING Constantly adapting to a changing environment at the service of client needs Client need Innovative solution: Global credit continuum offering Clients looking for diversification and yield under constraints, evolving towards outcome oriented solutions across asset classes Organization perfectly aligned with client way of thinking and supported by successful franchises and innovation Successful franchises AUM US Short Duration High Yield in Euro billion Innovation SmartBeta TM Credit expertise Global Strategic bonds expertise European Mid Cap Private Placement Platform 9M14 Leading franchises matching investors demand, in particular in a low interest rate environment Commercial Real Estate Debt M14 A constantly renewed pipeline of innovation Leveraged loans (CLO and funds) Infrastructure debt platform Alternative Credit initiative Mortgage loans Full credit spectrum covered Integration of Structured Finance within Fixed Income Broaden range of assets covered within Real Estate Ability to combine elements within the credit spectrum and beyond Global Fixed Income products to play between geographies Development of Solutions & ALM driven approaches Ability to combine real assets, listed equities and credit F14

15 OPERATIONAL EXCELLENCE Leverage the size and scope of operations to drive operational excellence A continuous approach to deliver improvement in Cost Income ratio A scalable global operating model ready to on-board additional growth at marginal cost IT architecture and infrastructure improvement IT infrastructure upgrade completed Investment platform front office tool architecture under review 76% 2 75% Operating Cost Income ratio 1-6pts Full revamp of data platform Launch of multi-year data transformation program 72% 72% 70% Continuous optimization of existing operational set-up Lean management program Fund range rationalization FY10 FY11 FY12 FY13 1H14 F15 All notes are on page F19 of this document

16 CULTURE Build on One AXA IM A corporate project and new mind-set, framed around 3 key themes CLIENT CENTRICITY UNITY SIMPLICITY Leverage AXA IM evolving organization Full empowerment, full alignment Agility and speed Creation of the Client Group to better address client needs Enhance monitoring of quality of service to continuously improve moments which matter the most for clients Refocus on a unique AXA IM branding and strengthen brand identity Reinforce transparency, leadership and empowerment Strengthen recognition and reward for performance to align further company and client long-term interests Develop a more agile way of working Transform & simplify IT architecture Achieve a step-up change in data management to accelerate digitalization F16

17 Concluding remarks

18 CONCLUDING REMARKS Key takeaways Priorities going forward A sustainable growth engine well positioned for 3 rd party success Pursue the new phase of growth in particular through 3 rd party business development A proven win-win model with the AXA Group Deliver on geographical developments Performing and innovative client centric offering Continue to adapt our offering Scalable global operating model ready to on-board additional growth at marginal cost Continue efforts on AXA IM cost income ratio F18

19 Notes Page F5 1. Adjusted ROE as of June 2014: 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 2. AXA IM free cash flow (AXA IM dividend at 100%) incl. special dividend linked to AXA Private equity sale 3. Figures as of 06/30/ AuM raised since 09/30/ Excl. AXA Main Fund & Unit Linked Page F6 1. Revenue split between AXA Insurance companies and 3rd party clients is based on revenues net of distribution fees and before intercompany eliminations (9M14 net revenues were 814m). 2. MACS: Multi Asset Client Solutions (includes multi-assets, external managers and total return) Page F7 1. Morningstar data AXA IM scope: Crossborder Funds - 41bn of AuM. Past performance cannot be relied on as a guide to future performance or construed as a reliable indicator for future performance 2. Scope: AXA IM Funds with outperformance objective respectively 111bn of AuM for 5 years annualized rolling outperformance and 122bn of AuM for 3 years annualized rolling outperformance. Past performance cannot be relied on as a guide to future performance or construed as a reliable indicator for future performance 3. MACS: Multi Asset Client Solutions (includes multi-assets, external managers, total return and structured products) Page F8 1. Excluding AXA Private Equity 2. Excluding Rosenberg Coding Error provision Page F12 1. Environmental, Social and Governance criteria 2. Excluding Private Equity Page F13 1. As at 10/31/2014 Page F15 1. Excluding financial result & AXA Private Equity 2. Excluding AXA Rosenberg coding error provision F19

20 Appendix

21 BIOGRAPHY ANDREA ROSSI CEO, AXA IM Andrea is Chief Executive Officer of AXA Investment Managers and member of the AXA Group Executive Committee. He had been previously Chief Executive Officer of AXA Assicurazioni from 2008 to 2013, and Chief Executive Officer & Deputy Chairman of AXA Insurance Gulf and Middle East from 2006 to Andrea joined AXA Group in 2001, after having worked for Olivetti, General Electric and Transamerica Aegon. F21