Investors H1 2019 Earnings Release August 06, 2019 Solid Financial - PowerPoint PPT Presentation

Presentation to Investors H1 2019 Earnings Release August 06, 2019

Solid Financial Foundations 2019 H1 2019 Q2 YoY /Δ QoQ /Δ  AvivaSA has maintained #1 position in terms of total AuM Pension AUM (inc AE) 22% 19.6bTL (#1 position at the private pension and #1 position at the private AE) Total GWP (Life+PA) 191 mTL 29% 8% 369 mTL  Focus on standalone products (ROP) helped to increase 29% YoY Total Technical Profit 16% -1% 247 mTL 123 mTL  Steady increase thanks to pension scalability and high profitability in protection segments 0.6 pts Expense Ratio (1) 44.5%  The decrease is due to higher increase in profit compared to the expense growth 31% Profit for the Period (IFRS) 116 mTL 65 mTL 26%  In Addition to 16% increase in technical profit, financial income is higher than prior year  ROE (IFRS) +5.2 pts 39.2% Strong profit combined with lean capital Profit for the Period (SFRS) 39% 22% 113 mTL 62 mTL  SFRS Profit has converged to IFRS Profit ● Strong dividend growth in accordance with strong growth in SFRS profit, Dividend Paid (2) 24% 60 mTL while maintaining the Solvency Ratio >150% 6%  MCEV has continued its growth underpinned by the quality of the in-force book MCEV 1,998 mTL 48%  Significant YoY growth achieved thanks to protection business VNB 162 mTL Note: (1) Expense ratio=(Opex-AE Related Expenses-Sales Expenses)/(Opex-AE Related Expenses-Sales Expenses+IFRS Proft Before Tax) 2 « Opex=G&A+Financial Expense » AvivaSA: Gizli (Confidential) (2) Second installment (40 mTL )will be paid on 27 November 2019

Differentiated Management of Trends and Dynamics per Segment Pension* Life Protection Personal Accident AUM – Inc. State contribution (TLm) Gross Written Premium (TLm) Gross Written Premium (TLm) FMC % (inc. State contribution) CAGR: 14% 1,6 1,6 1,5 1,5 1,4 1,5 1,3 CAGR: 25% 75,4 68,8 22% 480,2 CAGR: 25% 35% 1% 19.559 392,6 52,1 17.300 16.082 45,7 45,4 15.325 321,6 42,6 42,1 254,2 11.792 238,5 196,9 9.212 181,0 7.127 2014 2015 2016 2017 2018 H1 2018 H1 2019 2014 2015 2016 2017 2018 H1 2018 H1 2019 2014 2015 2016 2017 2018 H1 2018 H1 2019 (restated) Technical Profit (TLm) Technical Profit (TLm) Technical Profit (TLm) As Percentage Of Net Earned Premium As Percentage Of Net Earned Premium CAGR: 20% 233,8 60 54 57 57 59 57 62 41 49 34 41 40 36 47 207,1 CAGR: 16% CAGR: 17% 184,6 8% 155,7 28,3 138,7 27% 38% 144,1 23,9 122,4 22,2 114,2 113,8 111,8 104,5 103,4 17,4 16,7 86,1 15,2 82,4 12,5 2014 2015 2016 2017 2018 H1 2018 H1 2019 2014 2015 2016 2017 2018 H1 2018 H1 2019 2014 2015 2016 2017 2018 H1 2018 H1 2019 (restated) Source: Company information. 3 *Pension figures are including AE AvivaSA: Gizli (Confidential)

One of the Leading Company in Auto Enrolment Market Supported by Selective Presence Resu esults s and and Less Lessons s Lea Learned So So Far ar  More fragmented than regular pensions  Servicing capability is very important  Banks play a key role: AvivaSA achieved it’s targets mainly utilizing Akbank potential  Cannibalization on private pension system was lower than expected  Average opt-out ratio ~60% in the market 4 Source: EGM as of 30.06.2019 AvivaSA: Gizli (Confidential)

New Action Plan to Expand Life Protection + Personal Accident H1 2019 / H1 2018 YoY Total Premium Growth Rate DSF+Agency * Non-Credit Linked 43% 145,9 mTL (40%) Bancassurance Non- 38% 119,0 mTL (32%) Credit Linked 7% 103,8 mTL (28%) Bancassurance Credit Linked 29% 368,7 mTL (Total Company) (Total Company) 5 * Including Corporate and Telemarketing (non bancassurance) AvivaSA: Gizli (Confidential)

A Story of Solid Profitable Growth Shareholders’ Equity and Solvency Ratio (TLm) Profit for the Period (TLm) Solvency Ratio CAGR: +23% 225% 139%* 150% 172% 193% 152% 165% 31% CAGR: +17% 648,0 621,1 549,4 92,0 515,1 200,6 427,7 29,1 144,7 355,5 333,7 26% 116,0 105,0 87,1 88,7 62,9 2014 2015 2016 2017 2018 H1 2018 H1 2019 (restated) 2014 2015 2016 2017 2018 H1 2018 H1 2019 ( restated ) Technical Profit After G&A (TLm) ≈ EBIT 2015 2014 2016 2017 2018 H1 2018 H1 2019 (restated) CAGR: +23% ROE 156,3 29% 18%* 27% 30% 34% 34% 39% 2% *Before write-off RoE is 26%,Solvency ratio is 154% 117,9  Steady increase in shareholders’ equity reflects active management of 79,9 71,2 69,7 67,7 65,8 capitalization to fund business growth  Capital- light business, which benefits from AvivaSA’s measured approach to risk and new product introduction 2014 2015 2016 2017 2018 H1 2018 H1 2019 (restated)  Additional ROP DAC impact is calculated beginning from 2015 and has been reflected on 2019 opening equity, amount of 8.3 m TL. Source: Company information. 6 Note: Analysis on profitable growth derives from segmental information on this and following pages of the section, unless otherwise stated.. AvivaSA: Gizli (Confidential)

Summary of P&L from IFRS Segmental Reporting 2015 2014 2016 2017 2018 CAGR H1 2018 H1 2019 YoY Q1 2019 Q2 2019 QoQ (restated) Pension Technical Profit 114,2 138,7 155,7 207,1 233,8 20% 113,8 122,4 8% 65,7 56,6 -14% Life Protection Technical Profit 103,4 86,1 111,8 144,1 184,6 16% 82,4 104,5 27% 49,0 55,5 13% Life Savings Technical Profit 2,9 2,9 3,6 3,0 7,3 26% 3,9 2,8 -30% 1,1 1,7 49% 22,2 17% 38% 4% Personal Accident Technical Profit 15,2 16,7 23,9 28,3 12,5 17,4 8,5 8,9 Total Technical Profit 235,6 249,9 287,8 378,1 454,0 18% 212,7 247,0 16% 124,4 122,6 -1% General and Administrative Expenses -168,0 -184,0 -207,9 -260,2 -297,6 15% -143,0 -175,8 23% -88,6 -87,2 2% Total Technical Profit after G&A Expenses 67,7 65,8 79,9 117,9 156,3 23% 69,7 71,2 2% 35,8 35,4 -1% Total Investment Income & Other 42,2 49,8 52,3 63,3 102,6 25% 44,7 77,6 74% 31,4 46,2 47% Profit Before Taxes 109,9 115,6 132,2 181,2 258,9 24% 114,4 148,8 30% 67,2 81,6 21% Profit for the Period (Before Write-Off) 87,1 92,0 105,0 144,7 200,6 23% 88,7 116,0 31% 51,3 64,7 26% One-off Asset Write-Off Effect (net of tax) -29,1 Profit for the Period (After Write-Off) 87,1 62,9 105,0 144,7 200,6 23% 88,7 116,0 31% 51,3 64,7 26% One-off Asset Write-off: An IT project has been started at the end of 2012 in order to standardize all core insurance systems into a single application and integrate this core system with the peripheral systems. Although the project still continues, it has been decided to discontinue the development of the new core insurance application. Instead, current core systems will be modernized with a more agile methodology. Total capitalized costs related with this project was 48.7 Mtl, and TRY 36.3 Mtl of this cost (around 75%) has been written off in accordance with the aforementioned decision. 7 Source: Company information, IFRS and segmental reporting. AvivaSA: Gizli (Confidential)

Summary of P&L from SFRS Segmental Reporting 2015 2014 2016 2017 2018 CAGR H1 2018 H1 2019 YoY Q1 2019 Q2 2019 QoQ (restated) Pension Technical Profit -19,5 -16,0 -13,9 11,9 59,2 n/a 28,8 40,0 39% 24,2 15,8 -35% Life Technical Profit 39,9 22,1 46,6 57,3 92,2 23% 35,5 35,8 1% 14,5 21,2 46% Non-Life Technical Profit -1,7 6,4 -3,3 -0,5 0,9 n/a -0,5 2,1 n/a 0,0 2,1 n/a Total Technical Profit after G&A Expenses 18,7 12,4 29,4 68,7 152,3 69% 63,8 77,9 22% 38,8 39,1 1% Total Investment Income & Other 39,7 46,9 50,5 57,9 93,3 24% 40,9 66,9 63% 27,8 39,1 41% Profit Before Taxes 58,4 59,3 79,9 126,6 245,7 43% 104,7 144,8 38% 66,5 78,2 18% Profit for the Period (Before Write-Off) 45,9 46,9 63,2 101,7 191,2 43% 81,6 113,5 39% 51,1 62,3 22% One-off Asset Write-Off Effect (net of tax) -29,1 Profit for the Period (After Write-Off) 45,9 17,8 63,2 101,7 191,2 43% 81,6 113,5 39% 51,1 62,3 22% One-off Asset Write-off: An IT project has been started at the end of 2012 in order to standardize all core insurance systems into a single application and integrate this core system with the peripheral systems. Although the project still continues, it has been decided to discontinue the development of the new core insurance application. Instead, current core systems will be modernized with a more agile methodology. Total capitalized costs related with this project was 48.7 Mtl, and TRY 36.3 Mtl of this cost (around 75%) has been written off in accordance with the aforementioned decision. 8 Source: Company information, SFRS and segmental reporting. AvivaSA: Gizli (Confidential)

Top #1 at the Private Pension #1 at the private AE Business Become one of Maintain the leading leadership Priorities players in life position in market… pension… Significant improvement AvivaSA has become Generate Focus on at the pension lapse rate… to #4 position in June 2019 with strong IT customer Declining trend to 1,4% 10% market share progress… retention… over the last 3 months True Successful AvivaSA MobilApp project • Total Dovnloads – 270K customer Digital First / • Total Active Users – 110K composite MobilApp • App Rating – 4,6 IOS and 4,3 Android (Captive Agency / 360 ° product mix) Health product sales activities have started in Q3 2019 9 AvivaSA: Gizli (Confidential)

Market Consistent Embedded Value Disclosures 10