Facing Challenges in a Disruptive Industry: The AXA 2025 Strategy

At the core of the AXA 2025 strategy is the transformation from a payer-centric model to a partnership-focused approach. The key objectives include accelerating innovation, expanding in the Asian market, and adapting processes for the digital era. The presentation to Mr. Thomas Buberl highlighted strategic recommendations for reinventing AXA, with a focus on insurance, healthcare, and real estate in Asia. Embracing megatrends like climate change and advanced technology is crucial for staying ahead in the industry.

• AXA 2025
• Disruptive Industry
• Transformation
• Innovation
• Asian Market

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1. We strive for your success. AXA 2025 All set for the future Presenting to: Mr. Thomas Buberl (CEO AXA Group) Delivered by: Louisa Vogt, Albert Gorlick, Marvin Klose, Jona Vogel Paderborn University Montreal, 9th January 2020

2. Driving question. How to face challenges in disruptive industry? Advance on payer-to-partner transform journey Key Deliverables Speed up innovation to differentiate Bigger impact in Asian market Change establish process in digital world 2

3. Solution preview. Strategic recommendation 2 1 Reinvention of AXA on way from payer-to-partner Implementation actions 3 1 Insurance.Now 2 Hospitals & Real Estate in Asia Increased price per share 3 AXA connect & Francis to 31 by 2030 3

4. Road to success. Status Quo Implementation Strategy Outlook 4

5. Status Quo 5

6. Status Quo Strategy Implementation Outlook AXA Group at a glance. Channel Product Customer Websites Agents In EU, Asia, US, Middle East, Latin America, Africa Companies Individuals Organizations Asset management Life & savings Health Banking Property & Casualty Solid and reliant business model with great potential 6

7. Status Quo Strategy Implementation Outlook Disrupted by the market. Profit New normal Clear Inevitable Detectable Disruptor Incumbent Time Tackle changing industry to increase profits 7

8. Status Quo Strategy Implementation Outlook Changing customer needs. Value Flexi- bility Persona- lization Simplic ity Choice Availability Consider customer needs to be closer to the customer 8

9. Status Quo Strategy Implementation Outlook Megatrends high impact on industry. Climate change Protection needs Sustain- ability Advanced technology Sociopolit- ical turmoil Urgency to consider megatrends 9

10. Status Quo Strategy Implementation Outlook Growing Asian market. Opportunities Strategy Underinsured emerging middle class Rising living standards Increase on healthcare challenges Burgeoning commerce businesses Upgrading technological expertise Improving claim management and operational efficiency Reducing loss ratios Strengths Leverage partnerships Reach new customers More value to existing customers Improve business mix Become the preferred insurer in Asia 10

11. Status Quo Strategy Implementation Outlook AXA Next building an innovative ecosystem. AXA AXA Venture Partners Kamet Business continuity for Platform economy AXA Partners AXA Labs Mobility Health SMEs AXA Global Parametic Started path to create payer-to-partner but still long journey to go 11

12. Status Quo Strategy Implementation Outlook Highly competitive landscape across multiple segments, products and specialities. Global AXA Banks Global multiline Insurers Asset managers Insure techs Innovative Regional insurance carriers Path to outperform competitors improvement of innovations 12

13. Status Quo Strategy Implementation Outlook Financial status quo promising financial situation with need to focus. Gross revenue per business segment Financial KPIs - 2,2 % Revenue: euro 57,949 mn. - 0,7 % 2018 5,6 % Underlying earnings: 3,620 mn. 11,2 % 3 % 0 10,000 20,000 30,000 40,000 50,000 60,000 Life & Saving in mn. Banking Asset Management Health Property & Casualty Focus on Health, Property and casualty to increase revenue in this growing segments 13

14. Status Quo Strategy Implementation Outlook Financial status quo diversified revenue streams per market. Revenue per market Transversal & Central Holdings International AXA XL US Asia Europe France 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 mn. 2017 2018 2019 H1 Focus on most promising markets to grow in the future Europe, France, Asia and the US 14

15. Status Quo Strategy Implementation Outlook Financial status quo underlying earnings. Underlying earnings Transversal & Central Holdings International AXA XL US Asia Europe France -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 2017 2018 2019 H1 mn. Underlying earning structure support the focus on Europe, France, Asia and the US 15

16. Status Quo Strategy Implementation Outlook Financial status quo shareholder overview. in % 210 205 Financial KPIs 205 200 197 Dividend per share: 1.34 (in 2018) 193 195 190 190 - 7 % Solvency ratio II: 190 % 185 180 Shareholders equity: 66,725 mn. 175 170 Price per share: 23.39 2016 2017 2018 2019 Solvency II ratio Promising financial situation but shareholder has to be 16

17. Strategy 17

18. 18

19. Status Quo Strategy Implementation Outlook Challenges impacting the industry. Low interest rates Ambiguous impact of digitization Low growth rates 19

20. Status Quo Strategy Implementation Outlook Key success factors. Customer centricity Strategic decisions must be based on predefined criteria. Long-term growth Revenue/Cost Each alternative must be evaluated equally. Feasibility Strategic fit 20

21. Status Quo Strategy Implementation Outlook SafeFuture 2025 21

22. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 22

23. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 23

24. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 24

25. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 25

26. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 26

27. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 27

28. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 28

29. Status Quo Strategy Implementation Outlook Efficient process optimization. Separate improvements in subsidiaries New streamlined brand The creation of a new, agile and highly efficient organization will impact the whole company in the long run. AXA will leverage emerging technologies to boost process efficiency 29

30. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 30

31. Status Quo Strategy Implementation Outlook Focused expansion to Asia. Casualty & Property Asset Criteria Banking Health Life & Savings Management Decision specific Customer centricity factors Long-term growth Revenue/Cost Industry factors Feasibility Strategic fit 31

32. Status Quo Strategy Implementation Outlook Focused expansion to Asia. Casualty & Property Asset Criteria Banking Health Life & Savings Management Decision specific Customer centricity factors Long-term growth Revenue/Cost Industry factors Feasibility Strategic fit Casualty & Property and Health are growing sectors Asset management is already addressed 32

33. Status Quo Strategy Implementation Outlook Future trends in Asian market are in favor. Financial inclusion of underinsured middle class Rising standards of living Increase in healthcare challenges Burgeoning commercial business Trends underline the proposed strategy 33

34. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 34

35. Status Quo Strategy Implementation Outlook Internal speed-up of innovations. Focus on acquisitions In-house development AXA will focus on the in-house development of new capabilities and knowledge. AXA has the capabilities and manpower to develop new capabilities in the future 35

36. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 36

37. Status Quo Strategy Implementation Outlook From payer to partner. Offline (increase of agents) Online (digital assistant) The introduction of a digital assistant will enable customers to connect with AXA whenever needed. 37

38. Status Quo Strategy Implementation Outlook SafeFuture 2025 The path to success. AXA Processes Improve each subsidiary separately Create new & lean brand Expansion to Asia Asset Casualty & Property Banking Health Life & Savings Management Innovation Speed-Up Focus on Acquisitions In-house development Payer to Partner Offline Online Implementation actions Hospitals & Real Estate AXA connect & Francis Insurance.Now 38

39. Implementation 39

40. Status Quo Strategy Implementation Outlook Establish digital first brand to prepare for digitalization. Focus new brand on AXA s existing property and casualty products future option: extend to health Operations mainly done automatically low operating cost Online only brand with strong technological background Focus on developed countries Insurance.Now by AXA Backend: Store contracts and activities in blockchain Use blockchain-based smart contracts to issue new contracts to customer Robotic process automation (RPA) for processing customer requests See your policies Book new policy Benefits Revenue of 10 bn. in 2025 by new brand Increase profitability by 5% Get help Insurance.Now will be AXA s answer to digitalizing world 40

41. Status Quo Strategy Implementation Outlook Diverse strategy for a growing market with risks. Focus on property & casualty + health in Asian market New hospitals will meet requirements of emerging markets while enhancing brand reputation Real estate business will grow presence in Asian market while addressing climate change challenges Grow revenue in Asia by 20% Attract young, tech-savvy customer AXA + AXA is enhancing its cooperation with WHO to build 100 new hospitals in China, Indonesia and Philipines by 2023 Beijing Real Estate Development Build the sustainable living of the future Benefits Capitalize on growing market while keeping risks in mind 41

42. Status Quo Strategy Implementation Outlook Online platform and personal assistant will complete your journey from payer-to-partner. Francis your personal assistant Online platform to connect your customer Include telemedicine service where available Give 50% discount on Apple smartwatch with special health policy Increase NPS by 10% Getting closer to customer Increase cross-selling by 10% Lock-in effect for customer AXA connect What you can do: Discuss about car & home financing Find health and fitness tips Access and manage AXA policies getting personalized help wherever and whenever you need it Benefits AXA connect & Francis will be AXAs connection to the customer 42

43. Status Quo Strategy Implementation Outlook Acquire Element AI to leverage AI knowledge. Cost: 14.5 18 bn. Cost Due diligence: High expertise in AI 200+ PhDs Due- diligence Post merger: Include in AXA next division Setup DevOps structure to accelerate innovation Post-merger integration Element AI s expertise in natural language processing will enable tailored customer experience 43

44. Status Quo Strategy Implementation Outlook Contingencies. 1 Government restrictions Asia impact Seek for local partner 1 2 Slow translation of efficiencies 3 Increase IT development budget 2 Growth of casualty & property and health not big enough in Asia Include asset management 3 probability Several risks have been identified but mitigation actions are available 44

45. Status Quo Strategy Implementation Outlook Roadmap. 2020 2021 2022 2023 2024 2025 Cost (in bn.) Insurance.Now Setup new organization 0.3 Develop mobile app 0.15 Integrate blockchain & AI 0.1 Aisa strategy Cooperation with WHO and building of 100 hospitals 2 Cooperation with real estate developer 0.1 AXA connect & Francis Acquire Element AI 14.5 18 Integrate Element AI in AXA next 1.8 Develop online platform 0.5 Discount on smartwatches 0.2 45 Total cost: 19.65 22.65

46. Outlook 46

47. Status Quo Strategy Implementation Outlook Financial outlook. revenue Financial KPIs 300,000 250,000 Dividend per share: 2.4 200,000 150,000 Solvency ratio II: 240 % 100,000 Price per share: 31 50,000 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Group Insurance now Insurance.Now will boost revenue significantly 47

48. Status Quo Strategy Implementation Outlook Monday morning actions. Plan workshop with Head of Asia Set-up meeting with COO Contact Jean-Francois Gagne (CEO ElementAI) 48

49. We strive for your success. SafeFuture 2025