AXA Payer to Partner Journey: Innovating in the Face of Disruption

AXA PAYER TO PARTNER JOURNEY PRESENTING TO: MR. THOMAS BUBERL GSB Consulting Group

SITUATIONAL ANALYSIS Growth focus? Global footprint with a responsible mindset Highly innovative and willing to take risks Escalating socio- economic and climate threats Digital disruption Transformation focus? How will AXA redefine its value proposition and business model in the face of technological and societal disruption?

VALUE PROMISE AND PATH FORWARD 5 Year Strategy through a digital integrated personal insurance solution and preventative risk mitigation Client Conversion to Insurance of the Future 30-40% Margin Improvement from 6.2% to 7.1% New AXA, a true partner of customers Customers 4M Combat Technological and Societal Disruption

KEY ISSUES Change in Consumer Patterns Grudge purchase New exciting Insurtech competition Lines of business close to customer Climate change Socio-political risks Increasingly unpredictable Evolution of Risk Exposure to Financial Markets Interest rates Inflation Impending recession

RECOMMENDATION AXA Flex Digital integrated personal insurance solution Leverage data to change consumer behavior Customized offering for customer of the future Preventative Risk Mitigation Strategy Partnering with Municipalities and Governments Initiatives in high-risk, high-density population areas

ANALYSIS JANE

VALUE PROPOSITION trust $100bn business 103m customers across 64 countries Wide reach global footprint Responsible investments stability Simplifying and enhancing the healthcare journey of customers Empowering people to live a better life innovation, prevention, care Reliable accuracy

CUSTOMER ANALYSIS Customer profile Customer need Limited customer segments New young, digital-first consumers have different needs Changing consumer behavior Grudge purchase Choice Flexibility Simplicity Seamless Personalization Customer service Need to be more customer-centric and drive personalization to respond to changing customer needs

INCREASING RISK Risks Trends Life and savings is 60% of Revenue in 2016 BUT, highly dependent on financial markets (financial risk harder to diversify than insurance risk) - Need to reduce sensitivity to financial risks Natural disasters Inflation risks Global growth slowdown Low interest rates Volatile financial markets Digitalisation Longer life expectancy New pathologies Rising healthcare costs Virtual doctors Vertically integrated systems AI opportunity Growth in Non life- sector Wide Product portfolio life & savings, property & casualty, health, asset management, banking Health = 13m customers in 36 countries 12% of revenue (large growth opportunity) Need to implement preventative strategies to mitigate risk and improve profitability

COMPETITIVE LANDSCAPE Digital-first Insurtechs AxaNext (incubator) Axa Flex Global insurance premiums >$5 trillion Emerging tech = lower barriers to entry Narrow range of services Wide range of services Growth in Insurtechs - $8bn AIG Growth in non-life sector Allianz Axa Generali Aviva Zurich Traditional Need to innovate and transform the business to be more digitally focused to respond to changing landscape

ALTERNATIVES AND PATH FORWARD SHIVANI

ALTERNATIVES M&A of Insurtech Companies Vertical Integration Asia Growth Strategy Brick &Mortal Healthcare Channels Virtual Doctors Insurance Industry Trend Large Market with increasing disposable income Prevent reinventing the wheel Insurance industry trend

DECISION CRITERIA Digital Future Readiness Customer Centricity Risk Core Mitigation Competency

DECISION MATRIX Digital Future Readiness Customer Centricity Core Competency Risk Mitigation AXA Flex Preventative Risk Mitigation Vertical Integration (alt) M&A of Insurtech Companies (alt) Asia Growth Strategy (alt)

DECISION MATRIX Digital Future Readiness Customer Centricity Core Competency Risk Mitigation AXA Flex Preventative Risk Mitigation Vertical Integration (alt) M&A of Insurtech Companies (alt) Asia Growth Strategy (alt)

REC 1: AXA FLEX Why? Personal Insurance Product Focused Integration Solution Brace self against financial markets, possible impending recession Why? Millennial and Gen Y consumer segment focused digital platform- one stop shop Support the aging global population, demand experiential products Why? Leverage datapoints and partnerships to reduce payout ratio Rewards based behavior changing strategy Outcome: Hedge against financial markets, move to digital future, capture young captive customer base

REC 1: AXA FLEX Why? Personal Insurance Product Focused Integration Solution Brace self against financial markets, possible impending recession Why? Millennial and Gen Y consumer segment focused digital platform- one stop shop Support the aging global population, demand experiential products Why? Leverage datapoints and partnerships to reduce payout ratio Rewards based behavior changing strategy Payer-To-Partner

REC 1I: PREVENTATIVE RISK MITIGATION STRATEGY Strategic partnerships with governments and municipalities Projects in high risk, high density areas Reduce risk through mitigative projects Outcome: Reduce payout ratio, address unpredictive risks through prevention

IMPLEMENTATION KATE

IMPLEMENTATION 1: AXA FLEX Customer : What s in it for me Flexibility Going beyond insurance coverage Choice/ Personalization Simplicity CUSTOMER NEEDS New Product: Solves how you give back to customers

IMPLEMENTATION 1: AXA FLEX Points for going to the gym Based on gym card swipes Discount on gym fees 50 HEALTH REWARDS points Points for buying healthy foods Based on grocery card swipes Discount on groceries 50 DRIVE REWARDS points Points for better driving Measure through tracker Discount on fuel Finally a product where there is something in it for consumers AND Those rewards influence consumer behavior in a manner that decreases mitigates risks and decreases payouts

IMPLEMENTATION 1: AXA FLEX How do we communicate with customers Traditional channels Through PARTNERSHIPS (at partners locations) PARTNER Gyms Grocery stores Fuel stations BENEFIT Our extensive customer base encouraged to buy through the partners increase in volumes If resistance subsidize portion of discount Launch First in Europe (understand customers and have a good relationship)

IMPLEMENTATION I1: PREVENTATIVE RISK MITIGATION STRATEGY PARTNERSHIPS are key to both strategies Identify areas of prone to natural disasters: California municipality Wild fires Investing into Fire breaks Local firefighting infrastructure Training Data sharing MUTUALLY BENEFICIAL: Reduces effects for the communities and municipalities Payout on natural disaster greatly reduced

IMPLEMENTATION: TIMELINE Y1 Y2 Y3 Y4 Y5 Approach partners Negotiate terms Build platforms using AXA Next Market platform Launch platform (Europe first) Updates and improvements based on feed back Identify high risk areas Create strategic mutually beneficial partnerships

FINANCE VAN ZYL

COST BUDGET EUR Million 2020 2021 2022 2023 2024 Total AXA Flex Product Development Launch Marketing EUR EUR EUR EUR - EUR EUR EUR 200 50 22 EUR EUR EUR 100 20 271 EUR EUR EUR - - EUR EUR EUR - - EUR EUR EUR - - - 300 70 1,760 520 946 Cybersecurity EUR 150 EUR 50 EUR - EUR - EUR - EUR 200 Preventative initiatives EUR 500 EUR 500 EUR 500 EUR 500 EUR 500 EUR 2,500 HR Developers & Data Science Team Client Service Team EUR EUR EUR - EUR EUR 100 50 EUR EUR 140 50 EUR EUR 196 50 EUR EUR 274 50 EUR EUR 384 50 1,095 250 Total EUR 1,072 EUR 1,131 EUR 1,266 EUR 1,771 EUR 934 EUR 6,175 Self Funded AxaNext Incubator Intetrnal Venture Fund Monitor: Costs savings & Conversion rate

ASSUMPTION AND DRIVERS Description Assumption Note Market growth 1-2% Mature market Personal insurance conversion rate 30-40% Improved value proposition & Success of marketing drive New client acquisition 4mil Revenue/Customers EUR1107 Dividend payout ratio 50% Capital structure No change PE Multiple 10x

BASE CASE FORECASTS EUR Billion Revenue Customers Axa Flex Converted Customers New Customers Total Revenue 2019 102.87 EUR 92,926,829 2020 114.00 EUR 103,000,000 2021 116.28 EUR 104,030,000 EUR 200,000 116.50 EUR 2022 118.61 EUR 105,070,300 EUR 1,700,000 750,000 121.32 EUR 2023 120.98 EUR 106,121,003 EUR 3,200,000 1,500,000 126.18 EUR 2024 123.40 EUR 107,182,213 EUR 4,550,000 4,000,000 132.86 EUR Notes 0.22 2.71 5.20 9.46 EUR - - EUR - - Success of conversion Success of marketing 5.25% CAGR 7.10%Preventative measures & decreased payout 9.43 EUR 87.24 EUR 10.81% - 102.87 114.00 Margin 6.20% 6.20% 6.40% 6.80% 7.00% Net Profit Equity RoE EUR EUR 6.38 66.73 9.56% EUR EUR 7.07 70.26 10.06% EUR EUR 7.46 73.99 10.08% EUR EUR 8.25 78.11 10.56% EUR EUR 8.83 82.53 10.70% 8.14% CAGR Metric EPS RoE Solvency Your Target 3-7% 12-14% 170% - 230% Achieved Yes Not yet Yes

RISKS AND CONTINGENCY PLANS Risks Contingencies Target market definition (digital natives). Investment in Cybersecurity. Privacy concerns re data sharing Slow take-up of new offering due to high switching costs Investment in customer service department. Roll out of tailored product once it addresses customer needs. Consider acquisitions. Asia: Missed opportunity?

CONCLUSION SHIVANI

WHAT YOU ASKED OF US How should AXA advance on its Payer-to-Partner transformation journey? How could it speed up innovation to create new products/services/experiences? What could AXA do to have greater impact in Asia? How can AXA s long established processes and ways of working change to adapt?

CONCLUSION How will AXA redefine its value proposition and business model in the face of technological and societal disruption? AXA Flex Change in Consumer Patterns Preventative Risk Mitigation Strategy Evolution of Risk AXA Flex Exposure to Financial Markets Client Conversion to Insurance of the Future 30-40% Margin Improvement from 6.2% to 7.1% New AXA, a true partner of customers Customers 4M

APPENDICES

SWOT ANALYSIS Geographical footprint Open to innovation Responsible investment Partnerships Legacy systems Stock price stagnation Large corporation (lack of flexibility) Product development Health & Life insurance Geographical Expansion Vertical Integration & add-on s Partnerships Pay-per-use schemes Digital disruption Highly competitive Recession Climate change Increasing risk- political, environmental, cyber security Sluggish growth Life insurance regulations THREATS OPPORTUNITIES WEAKNESSES STRENGTHS