inaugural green bond - …
TRANSCRIPT
March 2021
Inaugural Green Bond
Table of contents
1. Group Overview P.03
2. Financial Results P.07
3. Sustainability Strategy P.18
4. AXA’s Sustainability Bond Framework P.29
5. Inaugural Green Bond Summary P.39
6. Appendix P.45
7. Disclaimer P.55
1. Group Overview
Global leader in P&C Commercial lines
Growth avenues in Asia,International and AXA IM
Leader in P&C Commercial and HealthExcellent distributionBest-in-class technical performance
Unique product suite and geographic reachHardening pricing cycleUnderwriting discipline
Pivoting to Health, in Asia and InternationalAccelerating in Alternatives, expert in ESG
Leader in the attractive European market
4 | Inaugural Green Bond | March 2021All notes are on pages 58 to 60
AXA today
€4bnUnderlying earnings1
in France and Europe
€32bnP&C Commercial
revenues2
€2bnHealth revenues
in Asia2
€159bnAuM
in Alternatives3
Increasing protection needs
Contribute to building a better society
Focus on technical risksUpside from price increases
Leading global insurer for P&C Commercial lines Health and Protection leader in Europe and Asia
Maintaining client satisfaction and digital investments at a high level
Leader in climate transition and social inclusion on investment and insurance risk
P&C price increasesdue to low interest rates
All notes are on pages 58 to 60
AXA is uniquely positioned for post-Covid profitable growth
Demand for simplicity and speed
Long-term trends AXA’s unique position
82%1
Technical risks
€62bnPreferred segment
revenues2
94%NPS at or above market average3
<1.5°CInvestment warming
potential4
5 | Inaugural Green Bond | March 2021
Driving Progress 2023 | AXA’s five strategic actions
Expand Health and Protectionincluding through services, across all geographies
Simplify customer experience and accelerate efficiencyparticularly in Europe and France
Grow cash-flows across the Groupthrough continued life in-force management and Group simplification, and disciplined capital management
Strengthen underwriting performancenotably at AXA XL
Sustain our climate leadership position in shaping the climate transition
6 | Inaugural Green Bond | March 2021
2. Financial Results: FY20 Key Highlights
Full Year 2020 | Key highlights
€97bnRevenues
Good business momentum
Preferred segments +5% in 4Q20
200%Solvency II ratio
Very strong balance sheet
AXA XL integrated in internal model (+13pts)
€4.3bn2020 reported UE
Confident earnings outlook
+3% to +7% UEPS CAGR from €6.3bn rebased UE2
€1.43Proposed DPS1
AttractiveDividend
In line with FY19 initial proposal
All notes are on pages 58 to 608 | Inaugural Green Bond | March 2021
Improved P&C CY CoR1
(ex Covid-19 & Cats2)
P&C profitabilityContinued shift in L&S net flows in 2020 (€bn)
L&S business mix
1
AXA seizing opportunities from excellent business trends
3Q20 4Q20
+5%
+3%94.2%
FY19
94.7%
FY20
Revenue growthaccelerated in 4Q20
Preferred segments
Change at constant scope and FX for revenues
G/A
UL
PR
+5.0
-3.4
3
All notes are on pages 58 to 609 | Inaugural Green Bond | March 2021
AXA XL benefiting from higher pricing and disciplined management
Transformation actions
Continued strong pricing momentum
2021 UE target reaffirmed
4Q20
+22%
3Q20
+20% €1.2bn(with higher Cat load)
✓ Disciplined line-sizing
✓ Strong January renewals
AXA XL Insurance2
All notes are on pages 58 to 60
A new and simpler organization,already operational
Reduced volatilitywith a more conservative Nat Cat load and protection on legacy long tail lines1
Underwriting discipline focused on increasing profitability and high-potential products
10 | Inaugural Green Bond | March 2021
AXA performing well across other geographies
Resilient earnings in France and Europe
Pivoting to Health in Asia and International
Accelerating in Alternatives
FY19 FY20
4.3 4.3
stable
Underlying Earnings in France and Europe
FY19 FY20
3.74.0
+10%
Health revenues in Asia and International
FY19 FY20
139
159
+14%
Alternative AuMat AXA IM
Change at constant scope and FX for revenues and at constant FX for UE
In Euro billion
11 | Inaugural Green Bond | March 2021
AXA XL turnaround in a favorable market context
Confident outlook for 2021 and beyond
France & Europe geared for sustained delivery
Growth in Asia, International and AXA IM
0.5
1.5
2023E
4.3
FY20 UE rebased
6.3
+3% to +7%UEPS1 CAGR2
2020 rebased – 2023E
In Euro billion
FY20 reported UE
Add back Covid-19 and excess Cats3
All notes are on pages 58 to 6012 | Inaugural Green Bond | March 2021
2. Financial Results: Balance Sheet Highlights
Solvency II and credit ratings
198%205%
2015 2016 2017
197%
20192018 2020
205%193% 200%
Solvency II ratio1
(Target capital level: ca. 190%)
Credit ratings
All notes are on pages 58 to 60
AA- / Stable
Aa3 / Stable
AA- / Stable
14 | Inaugural Green Bond | March 2021
Full Year 2020 | Solvency II ratio
Solvency II ratioIn Euro billion
Key sensitivities
Solvency II ratio roll-forward
EOF SCR
59,4 55,0
30,0 27,5
FY19 FY20
198% 200%
AXA XLintegration
Market impact excl. Forex
FY19 Operatingreturn
Debt, forex and other
Dividend FY20
198%
+15pts
-11pts
-22pts
+13pts+7pts 200%
Interest rate -50bps
Ratio as of December 31, 2020
Interest rate +50bps
Credit migration1
Corporate spreads +50bps
Equity markets -25%
Euro Sovereign spreads +50bps1
Equity markets +25%
200%+10 pts
-15 pts
0 pt
+6 pts
-8 pts
-13 pts-7 pts
All notes are on pages 58 to 6015 | Inaugural Green Bond | March 2021
0,4 0,51,0
0,7
20242021
0.1
≥20402022 2023
7.1
2025 2026 2027 2028 2029 2030 2031-2039
0.3
6.6
Undated
1,0 1,0 1,0 1,2
2,82,0
1,00,6
2,60,4 0,8
0,7
2026
0.1
2021 20232022
0.4
2024 2025 2027
0.50.2
2028 20302029 2031-2039
0.3
≥2040 Undated
Economic maturity breakdown
Full Year 2020 | Gross financial debt and long-term maturities
Gross financial debt Contractual maturity breakdown
Debtgearing1 28.8% 26.8%
11,39,2
6,7
6,6
FY20
0.9
FY19
1.0
19.1
16.6
Tier 1 Tier 2 Senior debt
In Euro billion
Remaining capacity
2.3
3.3
All notes are on pages 58 to 6016 | Inaugural Green Bond | March 2021
Full Year 2020 | Portfolio management and investment yields
Stable mix of high quality assetsFY20 Total General Account invested assets
Real Estate (6%)
Other Fixed Income (9%)
Governement bonds (43%)
Corporate bonds (28%)
Listed Equities (4%)
PE and HF (4%)
Cash and other (5%)
Euro
572billion
FY20 portfolio yield1
1,1%
2,6%
1,3%
AlternativeFixed Income
Core Fixed Income
FY20Fixed Income
2,8%
FY19
2.7%
FY20
-17 bps
FY20 Fixed Income reinvestment yield
Government bonds Average rating: AA
Corporate bonds Average rating: A
80% Fixed Income
3
2
o/w Euro 16 billion Green assets
All notes are on pages 58 to 6017 | Inaugural Green Bond | March 2021
3. Sustainability Strategy
AXA’s Purpose | Act for human progress by protecting what mattersThe result of a collaborative process with employees across the Group
19 | Inaugural Green Bond | March 2021
Our Purpose in action
Claims and solidarity measures€1.5bn claims1 expected to be paid
Employee well-beingGuaranteed employment and salaries during
lockdown2, global health program
Protecting our clients and employees
Providing capital to SMEs€700m investment in SMEs in France3
Investing in people and research5,000 recruitments in France in 2020,
funding to COVID-19 research and NGOs
Supporting economic recovery
All notes are on pages 58 to 60
AXA actively contributed to address societal challenges during COVID-19 crisis
20 | Inaugural Green Bond | March 2021
AXA’s Sustainability strategyAn ambition strongly linked to our Purpose
… backed by responsible and sustainable business practices all along the value chain
Climate Change & Biodiversity
Inclusive Protection
TaxRisk
Management Compliance HRGovernance
21 | Inaugural Green Bond | March 2021
AXA has been a leader since 2015, reinforcing itscommitments year-by-year
AXA’s climate leadership position
First to divest from coal, then ban insurance forcoal business, committing to a 0% coal world
Targeted “warming potential” of AXA’s investments to below 1.5°C by 2050
Embedding climate change in our new strategicplan “ Driving Progress 2023”
AXA 2020 Investor day Climate film
22 | Inaugural Green Bond | March 2021
In 2020, AXA continued to accelerate its climate & biodiversity leadership
As a global insurer
Carbon footprintreduction target of 20%
across AXA’s General Account Assets1 by 2025
Euro 24 billionGreen investment target by 2023
€16bn exposure in FY20 (€+4.4bn vs. FY19)
Intended increase in target commensurate with proceeds of the
inaugural green bond issuance2
AXA ClimateInnovative services to protect
against natural disasters
Net Zero Insurance Underwriting Alliance3
As a global investor
All notes are on pages 58 to 60
AXA XL Ocean Risk Initiative
23 | Inaugural Green Bond | March 2021
▶ 25% reduction in AXA’s CO2 emissions4
▶ Source 100% of AXA’s electricity from renewable energy sources by 2025
▶ Reduce unsorted waste per FTE by 10%
▶ Reduce water consumption per FTE by 10%
Pending approval from the Science Based Targets initiative5
AXA’s climate leadership extends to its own operations
Target Achieved
CO2 emissions per FTE1 -25% -38%
Reduce energyconsumption2 -35% -50%
Achieving our 2012 – 2020 targets New ambitious targets for 20253
All notes are on pages 58 to 6024 | Inaugural Green Bond | March 2021
Inclusive ProtectionAs a responsible insurer, AXA acts to address the protection gap
Dedicated product offering Working in coalitions
AXA Emerging CustomersEnabling vulnerable segments of the population
to access insurance products
22 million customers in 2020
Women in InsuranceIncreasing womens’ access to
insurance products
OECD-led« Business for Inclusive Growth »Fighting social inequality at a global level
through inclusive business models
Inclusive economy coalitionResponding to social vulnerabilities
in France
25 | Inaugural Green Bond | March 2021
Responsible investment | Focus on climate-related portfolio alignment
The “warming potential” approachAligning investments with the Paris Agreement
AXA’s corporate and sovereign investments display a “warming potential” of 2.8°C, which is below our benchmark1
All notes are on pages 58 to 60
(Corporate and Sovereign investments)
4.6°C
AXA’s divested
coal assets
AXA aggregate
Benchmark aggregate2
2.8°C
3.6°C
The carbon footprint of the « AXA aggregate » portfolio reduced by 31% between 2014 - 2019
2019
26 | Inaugural Green Bond | March 2021
Responsible investment | Focus on Green investments
FY20 Green investments breakdown
€4,832m – Real estate
€3,566m – Green bonds
€1,906m – Social bonds (incl. €367m of Covid-19 Impact bonds)
€1,854m – Infra equity
€966m – CRE loans
€48m – Impact€2,429m – Infra debt
Euro
16billion
27 | Inaugural Green Bond | March 2021
2020: 2nd placeScore: 88/100
Included inDJSI Europe & DJSI World indexes
Sector Leader1st / 51 insurance companies in
2020Included in Euronext Vigeo indices
AXA is a recognized sustainability leader
Included in theBloomberg Gender Equality
Indexin 2020
Score: AAAsince 2015
DJSI accounts for 10% of AXA employees
performance shares
“A+” 2020 UN PRI Scorecard (focus on Responsible Investment)
2nd / 278 insurance companies in 2020
28 | Inaugural Green Bond | March 2021
4. AXA’s Sustainability Bond Framework
Overall contribution to Sustainable Development Goals
AXA’s rationale for a Green, Social or Sustainability Bond issuance
AXA Investment Managers (“AXA IM”) has already positioned itself as a leader in the field of the green bond market. Since 2017, AXA IM has
been a member of the Executive Committee of the International Capital Markets Association (“ICMA”) for the Green and Social Bond
Principles, and has participated actively in several working groups on green bond-related matters, including green projects eligibility, external
reviews and impact reporting.
Insurance and asset management responsibility to transition toward a more sustainable economy
AXA is convinced that insurers and asset managers have a major role to play in the transition toward a more sustainable economy in terms of
social and environmental issues. AXA is willing to contribute to this transition through the risk management products and services it offers.
Sustainable funding provides an opportunity to finance AXA’s Sustainability Strategy. AXA is committed to ensuring that all of its future
investments made in accordance with its Sustainability Bond Framework contribute to a positive social or environmental impact on society.
AXA Group has been involved in the sustainability bond market for several years
The issuance of Green, Social or Sustainability bonds by AXA SA is the continuation of AXA Group’s
strategy to implement sustainable practices across all its activities
30 | Inaugural Green Bond | March 2021
As a leading sustainability player,AXA is establishing a Sustainability Bond Framework:
AXA SA may issue 3 types of bonds:▶ Green bonds
▶ Social bonds
▶ Sustainability bonds1
▶ 5 eligible Green categories
▶ 5 eligible Social categories
Compliant with ICMA Principles and
AXA’s Responsible Investment
policies2
Aligned with the best market practices
AXA’s Sustainability bond framework aligns with
the following standards administered by ICMA:
▶ Green Bond Principles 2018
▶ Social Bond Principles 2020
▶ Sustainability Bond Guidelines 2018
Externally verified by Sustainalytics, which issued a Second-Party Opinion on the Framework
“Sustainalytics is confident that AXA SA is well-positioned to issue green, social or sustainabilitybonds and that AXA’s Sustainability Bond Frameworkis robust, transparent, and in alignment with the fourcore components of the Green Bond Principles (2018)and Social Bond Principles (2020), and with theSustainability Bond Guidelines (2018)”
AXA Sustainability Bond Framework | Overview
All notes are on pages 58 to 6031 | Inaugural Green Bond | March 2021
Use of Proceeds | Green categories
Eligible Green Categories EU Environmental Objectives SDGs
Green buildingsClimate change mitigationEnergy savings
Renewable energyClimate change mitigationGHG emissions reduction
Clean transportationClimate change mitigationGHG emissions reduction
Energy efficiencyClimate change mitigationGHG emissions reduction
Natural resources /
Sustainable forestry
Climate change mitigationProtection and restoration of biodiversity and ecosystemsCO2 sequestrationReduction of air pollution
In accordance with ICMA’s Green Bond Principles, AXA identified 5 eligible green categories, each of which contributes to one ormore EU environmental objectives and United Nations Sustainable Development Goals (SDGs)
32 | Inaugural Green Bond | March 2021
Eligible Social Categories Social objectives SDGs
Access to essential services Improve access to Healthcare
Affordable housing Support access to housing supply
Employment generation
through SME financingSupport job creation / retention
Digital inclusion Support digital inclusion via deployment of fiber optic
Response to natural disasters Support the resilience of the population affected
Use of Proceeds | Social categoriesIn accordance with ICMA’s Social Bond Principles, AXA identified 5 eligible Social categories, each of which contributes to one or more social objectives and United Nations Sustainable Development Goals (SDGs)
33 | Inaugural Green Bond | March 2021
Implementation of a dedicated Sustainability Bond Working
Group (SBWG) responsible for preparing information
regarding potential eligible green and social projects and
submitting proposals for allocation decisions to the AXA
Group’s Responsible Investment Committee (RIC) which will
act as the Sustainability Bond Committee (SBC)
Working Group sessions to be held on a semi-annual basis
The SBWG will include representatives from AXA’s‒ Group Treasury
‒ Group Investments
‒ Group Sustainability
‒ Group Risk Management
‒ Asset owners represented by AXA Group’s investment
department (GIA) / AXA IM
Process for project evaluation and selection | A two-fold approach
Sustainability Bond Working Group
The Sustainability Bond Committee will meet semi-annually
and will undertake the following missions:
▶ Evaluate and validate the pool of Green and Social projects,
and take decisions regarding any exclusions of assets from the
pool and potential changes to the Sustainability Bond Framework
▶ Monitor the pool of Green and Social projects during the lifetime
of the Green, Social or Sustainability bonds issued and
manage/escalate any shortfall in eligible projects/assets
▶ Draft, review and approve the allocation and impact reports
▶ Monitor the evolution of the Green, Social, Sustainability bond
markets with the goal of aligning AXA’s Sustainability Bond
framework with best market practices
Sustainability Bond Committee
34 | Inaugural Green Bond | March 2021
Management of Proceeds | AXA Group Investment (GIA) supervision
Allocation on nominal equivalence basis
Internal tracking system and monitoring Management of unallocated proceeds
All notes are on pages 58 to 60
The proceeds1 from AXA SA’s Green, Social or Sustainability Bond
issuances will be credited to AXA SA’s treasury account and
allocated semi-annually on a nominal equivalence basis by AXA SA
to a pool of Green and/or Social projects booked on AXA SA’s or
AXA Group entities’ balance sheet(s)
Allocation period: AXA intends to allocate the proceeds from any
bond issuance under the Framework within 36 months from the
settlement date of such issuance, on a best-efforts basis
Look-back period: proceeds may be allocated to Green and/or
Social projects booked on AXA SA’s or AXA Group entities’ balance
sheet(s) in the three calendar years prior to the issuance year of the
Green, Social or Sustainability Bonds
Allocation and look-back periods
GIA to implement a tracking system within GIA’s investment
controlling system to monitor and track the proceeds allocation, in
order to ensure that, upon full allocation, the aggregate amount
allocated to Green and/or Social projects is equal to the amount of
the proceeds of the relevant Green, Social or Sustainability bonds
issuance
Pending full allocation, an amount equivalent to the balance of
unallocated proceeds will be allocated to temporary investments
such as cash, cash equivalent and/or other liquid marketable
investments in accordance with the AXA’s Responsible Investment
Policy2
35 | Inaugural Green Bond | March 2021
Commitment to publish an audited allocation and impact report one
year after the issuance of Green, Social and Sustainability Bonds
under the Framework and annually thereafter until full allocation of
the proceeds, and as necessary in the event of material
developments
All reports will be made publicly available on AXA’s website
(https://www.axa.com/en/investor/sustainable-financing)
The allocation report will provide information such as:‒ total allocations to Green and Social projects
‒ share of proceeds respectively allocated to financing versus
refinancing
‒ amount of unallocated proceeds at reporting end-period (if any)
‒ breakdown of total amount of proceeds allocated to Green and
Social projects per category
‒ geographical breakdown of Green and Social projects
The impact report will provide, when feasible, various indicators
and metrics to outline the positive environmental / societal impacts
of each of the Green and Social projects
Allocation and impact reports
Reporting
Estimated ex-ante annual energy savings(in MWh/year)
Expected annual renewable energy generation (MWh/year)
Refer to impact reports in appendix
Examples of key impact indicators
Estimated annual GHG emissions avoided (in tCO2e/year)
Estimated CO2 sequestrated(in tCO2e/year)
36 | Inaugural Green Bond | March 2021
Scope of work Second party opinion
▶ The Framework’s alignment with the Green
Bond Principles 2018, the Social Bond
Principles 2020, and the Sustainability Bond
Guidelines 2018, as administered by ICMA
Sustainalytics “is of the opinion that the AXA Sustainability Bond Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2018, Green Bond Principles 2018, and Social Bond Principles 2020”
▶ The credibility and anticipated positive
impacts of the use of proceeds
Sustainalytics “considers that the eligible categories will lead to positive environmental or social impacts and advance the UN Sustainable Development Goals, specifically SDG 3, 7, 8, 9, 11, and 15”
▶ The alignment of the issuer’s sustainability
strategy and performance and sustainability
risk management in relation to the use of
proceeds
Sustainalytics “is of the opinion that the AXA Sustainability Bond Framework is aligned with the Group’s overall sustainability strategy and initiatives and will further the Group’s action on its key environmental and social priorities and that AXA has implemented adequate measures and is well-positioned to manage and mitigate environmental and social risks commonly associated with the eligible categories”
External Review | Second-Party Opinion and external audit
▶ The annual allocation
and impact reports
will be verified by an
external independent
auditor
▶ The audit report will
be made publicly
available on AXA’s
website
External audit
37 | Inaugural Green Bond | March 2021
Asset pool | Overview of the eligible Green and Social projects
Split by eligible categories
82% – Green
18% - Social*
18% - Digital inclusion
31% – Renewable energy
28% – Green building
4% – Natural resources /Sustainable forestry
19% – Clean transportation
* Estimated portfolio of eligible social projects. Axa is currently developing relevant KPIs to assess the exact size of this portfolio.
More than €3 billion of potentially eligible Green and Social assets representing more than 50 projects
Split by geography
88% – Europe
11% – America
1% –Asia
Split by project type
38 | Inaugural Green Bond | March 2021
5. Green Bond Issuance Summary
AXA inaugural Tier 2 Subordinated Green Bond
▶ Issuer: AXA SA
▶ Notes: EUR [●] Fixed to Floating Rate Ordinary Subordinated Green Notes due 20[●]
▶ Expected ratings: [A3] by Moody’s, [BBB+] by S&P and [BBB] by Fitch
▶ Maturity: [●] [2041] subject to the Conditions to Redemption and Purchase
▶ First Call Date: [●] [2031]
▶ First Reset Date: [●] [2031]
▶ Mandatory Interest Deferral: In case of Regulatory Deficiency
▶ Optional Interest Deferral: Subject to a dividend pusher (6 month look-back)
▶ Use of proceeds: An amount equivalent to the proceeds from the issue of the Notes will be exclusively used to finance or re-finance, in
part or in full, new and/or existing eligible Green Projects as set out and defined in AXA’s Sustainability Bond Framework
*For further details, please refer to the indicative term sheet in the Appendix (pp. 47-48)
Key terms of the transaction*
40 | Inaugural Green Bond | March 2021
Example of eligible assets | Real estate
▶ 62-storey, 278-metre skyscraper
▶ Location: 22-24 Bishopsgate, City of London, UK
▶ Key indicators:
‒ EPC Level A+
‒ Certified: BREEAM Excellent, WiredScore Platinum
‒ 35% Reduction in BER
‒ CHP providing 60% of hot water demand
‒ 100% electricity from renewables
‒ 100% carbon offset natural gas
‒ 51% recycled/second-use materials
‒ 10% of floor space dedicated to tenant amenity & wellbeing
Direct real estate: Office development
35% CO2 emissions
Savings
100%electricity from
renewables
98% Construction waste
diverted from landfill
Closed loop recycling and composting
41 | Inaugural Green Bond | March 2021
Example of eligible assets | Forestry
▶ 7 200 hectares of productive forest land
▶ FCS and PEFC certified
▶ Location: Finland
▶ 7.6 MtCO2 of carbon stored in Kilpi III at December 2020
▶ In 2020, considering the change in soil carbon storage, the forest
growth and the harvested volume, the total annual forest carbon
balance was around 6 200t CO2 negative
▶ Considering the carbon balance of the forests and the carbon stored in
the wood products, the total annual carbon impact is 9 700 t CO2
positive. This considers the emissions from harvest, transportation, and
wood processing operations
Finnish forest
42 | Inaugural Green Bond | March 2021
Example of eligible assets | European Locomotive Leasing
▶ In 2020, AXA IM Real Assets acquired 49% of European Locomotive Leasing
▶ ELL leases its growing fleet of 152 Siemens electric Vectron locomotives to rail operators
▶ Headquartered in Austria, serving central Europe
▶ Aligned with EU policy of transferring freight from road to rail and energy-source from fossil fuels to a decarbonizing electricity grid
▶ Each locomotive can pull a train carrying the equivalent of over 70 heavy good vehicles
▶ Trains deliver an 80% reduction in carbon emissions versus trucks (all things being equal and not assuming zero carbon electricity)
Electric locomotives
43 | Inaugural Green Bond | March 2021
Example of eligible assets | Global renewable energy generation
▶ In 2020, AXA IM Real Assets acquired 20% of Acciona Energia Internacional
▶ Owns 48 wind and 3 solar farms across six continents
▶ Installed capacity of 2.4 gigawatts directly contributing to a zero-carbon electricity grid
Renewable Energy: Wind
44 | Inaugural Green Bond | March 2021
6. Appendix
AXA’s Sustainability Strategy | Responsible Investment
▶ ESG integrationAXA integrates ESG analysis into investment processes, using KPIs and qualitative research across most of its assets. This includes the implementation of ESG “minimum standards” rules based on ESG and controversy scores to review and potentially exclude underperforming issuers from AXA’s portfolios
▶ Climate-related portfolio alignmentCarbon metrics are integrated into investment decisions. AXA is also developing metrics for measuring the climate-related impact of its investments, in particular the contribution of its investments to the objective of the COP21 (“Paris Agreement”) to limit global warming
▶ Exclusions and sensitive ESG investmentsSector-based restrictions apply to sectors or companies that face acute social, human rights, ethical or environmental challenges. These currently include controversial weapons, coal mining and coal-based power generation, tar oil sands and associated pipelines, palm oil, food commodity derivatives, and tobacco
▶ A green investment target and transition financing toincrease the allocation of green assets across various asset classesand to support companies shifting towards less carbon-intensivebusiness models
▶ Impact investments that create intentional, positive,measurable and sustainable impacts on society while simultaneouslydelivering financial market returns
▶ Active stewardship through voting and engagement on a rangeof ESG or sustainability issues
Responsible
Investment
Strategy
ESG integration
Climate-related portfolio alignment
Exclusions and sensitive ESG investments
A green investment target and transition financing
Impact investments
Active stewardship
46 | Inaugural Green Bond | March 2021
Inaugural Green Transaction | Term Sheet (1/2)Indicative summary of the terms and conditions*
Issuer ▪ AXA SA
Notes ▪ EUR [●] Fixed to Floating Rate Ordinary Subordinated Green Notes due 20[●].
Expected ratings▪ [A3] by Moody’s, [BBB+] by S&P and [BBB] by Fitch
Maturity ▪ [●] [2041] subject to the Conditions to Redemption and Purchase
First Call Date ▪ [●] [2031]
First Reset Date ▪ [●] [2031]
Status▪ Ordinary Subordinated Obligations▪ Senior to any Undated Subordinated Notes, any Undated Subordinated Obligations, any prêts participatifs granted to the Issuer, any
titres participatifs issued by the Issuer and any Deeply Subordinated Notes issued by the Issuer
Interest▪ Fixed rate until First Reset Date payable annually in arrear. Thereafter reset on the First Reset Date at a rate equal to the sum of 3-month
Euribor (subject to Benchmark Discontinuation provision) and the Margin (including 100bps step-up)
Interest Deferral
▪ Interest will be mandatorily deferred in case of Regulatory Deficiency, subject to regulatory waiver▪ The Issuer may elect to defer any interest provided a dividend on ordinary or preference shares has not been declared or paid in the
preceding 6 months (provided that the Interest Payment Date is not a Mandatory Interest Deferral Date)▪ Deferred interest payments will constitute Arrears of Interest which are cumulative and not compounding
Optional Redemption
▪ The Issuer may, at its option, redeem all or some only of the Notes then outstanding on (i) any day falling in the period from (and including) the First Call Date to (and including) the First Reset Date or (ii) any Interest Payment Date thereafter at par, subject to the Conditions of Redemption and Purchase
Special Event Redemption
▪ The Issuer may redeem all of the Notes at par at any time for tax reasons (WHT Event, Gross-up Event and Tax Deductibility Event), upon a Regulatory Event, Accounting Event, Rating Methodology Event or clean-up (>= 80%), subject to the Conditions to Redemption and Purchase
* For more detailed terms and conditions (including defined terms), please refer to the preliminary prospectus dated March 26, 202147 | Inaugural Green Bond | March 2021
Inaugural Green Transaction | Term Sheet (2/2)Indicative summary of the terms and conditions*
Conditions to Redemption and Purchase
▪ All redemptions are subject to (i) prior Relevant Supervisory Authority approval; (ii) no Regulatory Deficiency; (iii) no Insolvent Insurance Affiliate Winding-up (if then required); subject to regulatory waiver in certain conditions
Special Event Substitution/Variation
▪ As an alternative to early redemption, the Issuer has the option to substitute the Notes (in whole) or vary the terms at any time without the consent of the Noteholders upon a Regulatory Event or a Rating Methodology Event (subject to certain conditions, including the terms of the substitution or variation not being prejudicial to the interest of Noteholders)
Regulatory Deficiency
▪ Non-compliance with Issuer/Group SCR or MCR, or any applicable capital requirements for internationally active insurance groups▪ Regulatory request, for the Issuer to take specified action in relation to payments under the Notes
Denomination ▪ EUR 100k and integral multiples of EUR 1k in excess thereof up to (and including) EUR 199k
Law/Listing▪ English Law (save for the Status and Subordination provisions governed by French law) / Official List of the Luxembourg Stock Exchange
(regulated market)
Taxation ▪ Mandatory gross-up for withholding tax, subject to customary circumstances
Documentation▪ Issued under AXA’s EMTN Programme dated [●], 2021, as supplemented, via a tranche prospectus to be approved by the CSSF on [●],
2021
Events of default ▪ None
Waiver of set-off▪ No holder of any Note may at any time exercise or claim any Set-Off Rights against any right, claim, or liability the Issuer has or may have
or acquire against such holder
Use of proceeds▪ An amount equivalent to the proceeds from the issue of the Notes will be exclusively used to finance or re-finance, in part or in full, new
and/or existing eligible Green Projects as set out and defined in AXA’s Sustainability Bond Framework
48 | Inaugural Green Bond | March 2021 * For more detailed terms and conditions (including defined terms), please refer to the preliminary prospectus dated March 26, 2021
Reporting | Impact report – Green eligible categories
Eligible categories Examples of output indictors Example of impact indictors
Green buildingsNumber of dwellings / assets built / renovated
Number of dwellings / assets by type of certificationEstimated ex-ante annual energy savings (MWh/year)
Renewable energy Installed capacity (MW)Expected annual renewable energy generation (MWh/year)
Estimated annual GHG emissions avoided (tCO2e/year)
Clean transportationLength of rail construction
Number of electric vehicle charging points installedEstimated annual GHG emissions avoided (tCO2e/year)
Energy efficiency Number of installed smart metersEstimated ex-ante annual energy savings (in MWh/year)
Estimated annual GHG emissions avoided (tCO2e/year)
Natural resources / Sustainable
ForestrySurface of FSC and/or PEFC certified forests (in ha) Estimated CO2 sequestrated (in tCO2e/year)
49 | Inaugural Green Bond | March 2021
Reporting | Impact report – Social eligible categories
Eligible categories Examples of output indictors Example of impact indictors
Access to essential
services
Number of hospitals supported
Number of new beds provided
Number of beneficiaries (students)
Number of dwellings per university
Territorial impact data, if applicable
Affordable housingNumber of new / refurbished dwellings
Number of beneficiaries
Employment generation through SME
financing
Number of SMEs financed (per regions)
Number of Jobs created
Number of Jobs retained
Digital inclusion Number of beneficiaries
Response to natural disastersNumber of beneficiaries
Number of public institutions helped
50 | Inaugural Green Bond | March 2021
Use of Proceeds | Green categories (1/2)
Eligible categories DescriptionEU environmental
objectivesSDGs
Green buildings
Investments/financing dedicated to the construction and acquisition of energy-efficient buildings
which either:
▪ have a primary energy demand at least 20% lower than the one resulting from the local NZEB
▪ have reached at least EPC A level,
▪ obtained at least LEED Platinum, BREEAM Excellent (or better) or HQE Excellent (or better)
certifications (or any equivalent local certification, DNGB (Gold or above) , Minergie, etc.)
Investments/financing dedicated to the renovation of buildings reaching at least 30% of energy
efficiency improvement
Climate change
mitigation
Energy savings
Renewable Energy
Investments/financing dedicated to the construction and operation of electricity generation facilities
supporting a transition to a net zero emissions economy:
▪ solar and wind facilities
▪ other low-carbon energy sources with lifecycle emissions lower than 100gCO2e/kWh,
including small-scale hydropower projects (<25 MW)
Climate change
mitigation
GHG emissions
reduction
Clean
transportation
Investments/financing dedicated to the construction and maintenance of infrastructure dedicated to
low carbon transport:
▪ public transport: zero direct emissions transport activities (e.g. light rail transit, metro, tram,
trolley, bus and rail)
▪ infrastructure for low carbon transport:‒ Infrastructure required for zero direct emissions transport (e.g. electric charging points,
electricity grid connection upgrades, hydrogen fuelling stations or electric highways)
‒ Infrastructure and equipment for active mobility (walking, cycling, e-bikes, etc.)
‒ Transport infrastructure which enables significant reductions in carbon emissions and
contributes meaningfully to decarbonisation of transport emissions
Climate change
mitigation
GHG emissions
reduction
51 | Inaugural Green Bond | March 2021
Use of Proceeds | Green categories (2/2)
Eligible categories Description EU environmental objectives SDGs
Energy efficiency
Investments/financings dedicated to the manufacturing, installation,
maintenance and repair of energy efficiency devices such as:
▪ smart thermostats systems
▪ building automation and control systems for energy and lighting
▪ smart meters for heat, cool and electricity
Climate change mitigation
GHG emissions reduction
Natural resources /
Sustainable forestry
Investments/financings dedicated to the acquisition, maintenance and
sustainable management of forests and lands in France and in Europe:
▪ certified forests (FSC, PEFC or equivalent)
▪ forest regeneration projects which have been awarded carbon credit
(e.g. VER) by an internationally recognised certifier
Climate change mitigation
Protection and restoration of
biodiversity and ecosystems
CO2 sequestration
Reduction of air pollution
52 | Inaugural Green Bond | March 2021
Use of Proceeds | Social categories (1/2)
Eligible categories Description Social objectives SDGs
Access to essential
services
▪ Hospitals/Healthcare: Investments / financing of the construction, refurbishment, maintenance
and operation of public hospitals, clinics, healthcare centers, or other healthcare facilities
providing universal access as a public service (no restrictions based on specific groups or on
affordability)
Target population: Population including the most vulnerable
▪ Student Housing: Investments / financing of the construction, refurbishment, maintenance and
operation of housing for students that are pursuing higher education and provide access to
accommodations without any restrictions to specific groups of students or based on income ;
however, rents above the regional average are excluded
Target population: Student population
Improve access to
healthcare
Improve access to
student housing
Affordable housing
Investments / financing of the construction, refurbishment, maintenance and operation of social
housing infrastructure, meeting the statutory definition and relevant eligibility criteria as set out in
the applicable local regulation
Target population: Low-income population
Support access to
housing supply
53 | Inaugural Green Bond | March 2021
Use of Proceeds | Social categories (2/2)
Eligible categories Description Social objectives SDGs
Employment
generation through
SME financing
Investments that support local economic development and job creation/retention in the
context of the COVID-19 recovery via the financing of small, medium and micro-sized (SMEs)
with primary focus in the health, medico-social, Silver Economy, renewable energy, circular
economy, social tourism, culture sectors
Target population: SMES with primary focus in sectors with positive social impact
Support job
creation / retention
Digital inclusion
Investments in projects or activities that allow for the deployment of fiber optic network for
populations located in unconnected or underserved areas / territory of France (in terms of
fixed network)
Target population: Population in underserved and unconnected areas of France/Europe
Support digital inclusion via
deployment of fiber optic
Response to
natural disasters
Investment and/or financing for the prevention of natural disasters such as floods, droughts
and storms or wildfires
Target population: Population affected by natural disaster
Support the resilience of the
population affected
54 | Inaugural Green Bond | March 2021
Disclaimer
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES
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 orobjectives. 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 thatcould cause AXA’s actual results to differ materially from those expressed or implied in such forward looking statements. Please refer to Part 5 - “Risk Factors and Risk Management” of AXA’s UniversalRegistration Document for the year ended December 31, 2020 (the “2020 Universal Registration Document”) for a description of certain important factors, risks and uncertainties that may affect AXA’sbusiness and/or results of operations, particularly in respect of the Covid-19 crisis. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflectnew information, future events or circumstances or otherwise, except as required by applicable laws and regulations.
In addition, this presentation refers to certain non-GAAP financial measures, or alternative performance measures (“APMs”), used by Management in analyzing AXA’s operating trends, financialperformance and financial position and providing investors with additional information that Management believes to be useful and relevant regarding AXA’s results. These non-GAAP financial measuresgenerally 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 shouldbe considered in isolation from, or as a substitute for, the Group’s consolidated financial statements and related notes prepared in accordance with IFRS. A reconciliation from APMs UnderlyingEarnings and Combined Ratio to the most directly reconcilable line item, subtotal or total in the financial statements of the corresponding period is provided on pages 47 and 48 of the 2020 UniversalRegistration Document. APM Underlying Earnings per share is reconciled to the financial statements in the table set forth on page 54 of the 2020 Universal Registration Document. The calculationmethodology of Debt Gearing is set out on page 50 of AXA's 2020 Universal Registration Document. The above-mentioned and other non-GAAP financial measures used in this presentation are defined inthe Glossary set forth on pages 479 to 483 of the 2020 Universal Registration Document.
The information contained herein does not purport to be a comprehensive or complete summary of AXA's Sustainability Bond Framework (the "Framework") or the second-party opinion issued bySustainalytics with respect to the Framework (the "SPO"). This presentation is qualified in its entirety by the contents of the Framework and the SPO and should be read in conjunction therewith. TheFramework and the SPO are available on AXA's website (https://www.axa.com/en/investor/sustainable-financing).
This presentation is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, and shall not constitute an offer, solicitation or sale in anyjurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The distribution, publication or release of thispresentation or any information contained therein or relating thereto may be prohibited by law in certain jurisdictions. Persons into whose possession this presentation or information comes arerequired to inform themselves of and to observe these restrictions. Non-compliance with these restrictions may result in the violation of legal restrictions in such jurisdictions. AXA does not accept anyliability to any person in relation to the distribution of such presentation or information in any jurisdiction.
This presentation does not constitute a recommendation concerning any issue of securities. Potential investors should consult a professional adviser as to the suitability of the Notes referred to hereinfor the person concerned.
This presentation and the information it contains may not be published, released, forwarded, transmitted or distributed, directly or indirectly, in or into the United States (including its territories anddependencies) or to any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1933) or any person located or resident in the United States.
56 | Inaugural Green Bond | March 2021
This presentation is an advertisement and not a prospectus for the purposes of Regulation (EU) 2017/1129 of June 14, 2017 (as amended, the “Prospectus Regulation”) and Delegated Regulation (EU)2019/979 of March 14, 2019, as amended. Investors in the European Economic Area (“EEA”) who wish to obtain information on the terms and conditions of the Notes, and determine whether or not theymay, and wish to, subscribe thereto are urged to read, and refer exclusively to, the prospectus to be submitted by AXA SA for approval to the Luxembourg Financial Markets Authority (Commission deSurveillance du Secteur Financier) (the “CSSF”), before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in thesesecurities. Such prospectus will be published on AXA’s website (www.axa.com, Section “Investors”, sub-section “Legal Information & Financing”, pages “Listed Notes (EMTN)” or “Listed Notes (other)”)and on the website of the Luxembourg Stock Exchange (www.bourse.lu). The approval of this prospectus by the CSSF should not be understood as an endorsement of the securities offered or admittedto trading on a regulated market.
The Notes referred to herein are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to, and no action has been or will beundertaken to offer, sell or otherwise make available any Notes, to any retail investor in the EEA. For the purposes of this provision: (a) “retail investor” means a person who is one (or more) of thefollowing: (i) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “MiFID II”); or (ii) a customer within the meaning of Directive (EU) 2016/97, as amended, where thatcustomer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a “qualified investor” as defined in the Prospectus Regulation; and (b) the expression“offer” includes the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase orsubscribe for the Notes, as applicable. Consequently no key information document required by Regulation (EU) No. 1286/2014 (as amended, the “PRIIPs Regulation”) for offering or selling the Notes, orotherwise making them available, to retail investors in the EEA has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investor in the EEA may beunlawful under the PRIIPs Regulation.
This presentation is not a prospectus within the meaning of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “UK ProspectusRegulation”) and has not been approved, filed or reviewed by any regulatory authority of the United Kingdom (“UK”). This presentation has not been approved by an authorized person for the purposesof Section 21 of the Financial Services and Markets Act 2000, as amended (the “FSMA”). Accordingly, this presentation is not being distributed to, and must not be passed on to, the general public in theUnited Kingdom. The communication of this presentation is exempt from the restriction on financial promotions under Section 21 of the FSMA on the basis that it is only directed at and may only becommunicated to (1) investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “FPO”), (2) high net worthcompanies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the FPO, and (3) persons outside the United Kingdom (together being referred to as“relevant persons”), and must not be acted on or relied upon by persons other than relevant persons. Any investment activity referred to in this presentation is available only to relevant persons and willbe engaged in only with relevant persons.
The Notes referred to herein are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to, and no action has been or will beundertaken to offer, sell or otherwise make available any Notes, to any retail investor in the UK. For the purposes of this provision a “retail investor” means a person who is one (or more) of the following:(i) a retail client as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the “EUWA”); or (ii) a customerwithin the meaning of the provisions of the FSMA and any rules or regulations made under the FSMA to implement Directive (EU) 2016/97, where that customer would not qualify as a professional clientas defined in point (8) of Article 2 of Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the EUWA; or (iii) not a “qualified investor” as defined in the UK Prospectus Regulation.Consequently no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EUWA (as amended, the “UK PRIIPs Regulation”) for offering orselling the Notes, or otherwise making them available, to retail investors in the UK has been prepared and therefore offering or selling the Notes or otherwise making them available to any retail investorin the UK may be unlawful under the UK PRIIPs Regulation.
57 | Inaugural Green Bond | March 2021
Notes (1/3)Page 41. Underlying Earnings. Underlying Earnings (“UE”) is an APM. For further information, please refer to the reconciliation of this non-GAAP financial measure to the financial statements and to its definition in the Glossary,
which are provided in AXA’s 2020 Universal Registration Document (respectively, on pages 47 to 48 and 480).2. As of FY20.3. Assets under Management, as of FY20.
Page 51. Based on FY19 pre-tax Underlying Earnings, excluding Equitable Holdings Inc. and AXA SA and other central holdings.2. As of FY20. Preferred segments: includes Health, P&C Commercial lines and Protection, as set out in the 2017 Investor Day presentation dated November 14, 2017.3. As of December 2020 (by main lines of business in entities).4. Target related to contain “warming potential” of AXA's investments to below 1.5°C by 2050.
Page 81. Dividend per share of €1.43 will be proposed at the Annual General Meeting on April 29, 2021 and is expected to be paid on May 11, 2021 with an ex-dividend date of May 7, 2021. 2. FY20 Underlying Earnings rebased includes actual Underlying Earnings restating for “Covid-19 claims” and natural catastrophes in excess of normalized.
“Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. “Covid-19 claims” does not include any financial market impacts (including impacts on investment margin, unit-linked and asset management fees, etc.) relating to the Covid-19 crisis. The AXA Group normalized level of Natural Catastrophe charges expected for 2020 is at ca. 3% of Gross Earned Premiums. Natural Catastrophe charges include natural catastrophe losses regardless of event size.
Page 91. Current year combined ratio. Combined ratio is an APM. The calculation methodology of the combined ratio is set out on page 50 of AXA’s 2020 Universal Registration Document.2. Exclude the impacts of €1.5bn “Covid-19 claims” in 2020 (P&C net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. “Covid-19
claims” does not include any financial market impacts including impacts on investment margin, etc. relating to the Covid-19 crisis) and natural catastrophes charges. Natural Catastrophe charges include naturalcatastrophe losses regardless of event size.
3. PR stands for Protection; UL stands for Unit-Linked; G/A stands for General Account Savings.
Page 101. AXA XL entered into an adverse development cover agreement with Enstar Group Limited. Under the terms of the agreement, AXA XL will obtain coverage for 90% of potential adverse developments on AXA XL’s legacy
long tail line reserves for accident years 2019 and prior. Please refer to AXA’s FY20 press release and page B30 in FY20 Presentation Appendix for more details.2. Renewals only at AXA XL Insurance, price effect calculated as a percentage of renewed premiums. Price effect for each quarter based on renewal premiums in each respective quarter at AXA XL.
Page 121. Underlying Earnings per share (“UEPS”) is an APM. For further information, please refer to the reconciliation of this non-GAAP financial measure to the financial statements and to its definition in the Glossary, which
are provided in AXA's 2020 Universal Registration Document (respectively, on pages 54 and 480).2. Compounded Annual Growth rate of +3% to +7% Underlying Earnings per share for 2020 rebased - 2023 as set out in the 2020 Investor Day presentation on December 1, 2020; period-to-period results may vary.3. FY20 Underlying Earnings rebased includes actual Underlying Earnings restating for “Covid-19 claims” and natural catastrophes in excess of normalized.
“Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. “Covid-19 claims” does not include any financial market impacts (including impacts on investment margin, unit-linked and asset management fees, etc.) relating to the Covid-19 crisis. The AXA Group normalized level of Natural Catastrophe charges expected for 2020 is at ca. 3% of Gross Earned Premiums. Natural Catastrophe charges include natural catastrophe losses regardless of event size.
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Notes (2/3)Page 14
1. The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXAGroup’s Solvency and Financial Condition Report (SFCR) as of December 31, 2019, available on AXA’s website (www.axa.com). Pursuant to the authorization from AXA’s lead supervisor (the ACPR), the contribution ofentities that were part of the XL Group (“XL entities”), and are now part of the AXA XL division, to the Group Solvency II ratio is, as from December 31, 2020, calculated with the AXA Group internal model. In compliancewith the prior decision from ACPR, the XL entities contributed to the Group’s solvency capital requirement as of December 31, 2019 using the Solvency II standard formula.
Page 15
1. Sensitivity to Euro sovereign spreads assumes a 50bps spread widening of the Euro sovereign bonds vs. the Euro swap curve (applied on sovereign and quasi-sovereign exposures). Sensitivity to credit rating migrationassumes 20% of corporate bonds (including private debt) held are downgraded by one full letter (3 notches).
Page 16
1. Debt gearing is used to measure the financial leverage of the Group. AXA’s debt gearing is calculated by dividing gross debt (financial debt and undated subordinated debt) by total capital employed. Total capitalemployed is equal to the sum of gross debt and consolidated shareholders’ equity (excluding undated subordinated debt and reserves relating to the change in fair value of financial instruments and of hedgeaccounting derivatives). Debt Gearing is an APM. The calculation methodology of Debt Gearing is set out on page 50 of AXA's 2020 Universal Registration Document.
Page 171. Gross asset yield.2. Mainly private equity and hedge funds, as well as non-listed equities.3. Notably including real estate debt and CLOs.
Page 201. Claims herein include P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. Claims herein do not include any
financial market impacts (including impacts on investment margin, unit-linked and asset management fees, etc.) relating to the Covid-19 crisis. 2. AXA communicated on April 1, 2020 that “the crisis will have no impact on employment or on the remuneration of employees during the confinement period”. 3. €500m entrusted with CAPZA to enable SMEs to strengthen their balance sheets and recover from the Covid-19 shock, and ca. €200m in the FFA CDC Covid-19 program.
Page 231. Aggregated 20% reduction across General Account assets related to Corporate Fixed Income, listed equities and Real Estate assets.2. For further details on the contemplated inaugural green bond issuance, please refer to slide 40.3. AXA called for the launch of this alliance in December 2020
59 | Inaugural Green Bond | March 2021
Notes (3/3)Page 241. (energy, business travel, car fleet and paper) in TCO2eq/FTE2. Scopes 1 & 23. Starting year 20194. (in absolute terms t.CO2 eq.) broken down into the following CO2 emissions reduction sub-targets:
• -20% from AXA’s vehicle fleet emissions• -35% from AXA’s power consumption linked to building and data centers• -18% from AXA’s business travel emissions
5. The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets.
Page 261. Prudence must be exerted when analyzing these figures, as the underlying methodologies are still evolving.2. Weighted average reflecting the allocation of AXA’s portfolio based on the following benchmarks: MSCI World ACWI (equities), BofA Merrill Lynch Global Aggregate Corporate (corporate debt), JPM GBI Global
(sovereign debt).
Page 311. Bonds where an amount equivalent to the proceeds of the issuance is exclusively applied to finance or refinance, in part or in full, a combination of both Green Projects and Social Projects.2. All projects and assets financed under AXA’s Sustainability Bond Framework will undergo AXA’s overall investment review process, which includes the assessment of broader risk factors including potential financial,
legal, regulatory and governance risks. In accordance with its Responsible Investment policy, AXA will not use the proceeds of any Green, Social or Sustainability Bonds issuance to knowingly finance (1) companies listed in AXA’s exclusion list or (2) projects, assets or businesses involved in the following types of activities:• coal mining and coal-based energy production• oil sands production and oil sands-related pipelines• tobacco manufacturing• palm oil production• food (“soft”) commodities derivatives• controversial weapons manufacturing
Page 351. Gross proceeds2. Please refer to footnote 1 page 31
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