Investors Q3 2019 Earnings Release October 31, 2019 Solid - PowerPoint PPT Presentation

Presentation to Investors Q3 2019 Earnings Release October 31, 2019

Solid Financial Foundations 2019 Q3 YoY /Δ YTD  AvivaSA continues to maintain its #1 position in terms of total AuM Pension AUM (inc AE) 20.9bTL 21% (#1 position in private pension and #1 position in private companies ’ AE)  Focus on standalone products (ROP) and launch of long-term credit life product Total GWP (Life+PA) 625 mTL 48% helped to increase 48% YoY Total Technical Profit 397 mTL  Steady increase resulting from high profitability in life and pension scalability 12% Expense Ratio (1) 43.8%  The increase is mainly due to increase in sales commission expenses 1.3 pts  In addition to increase in technical profit, financial income is strong with higher Profit for the Period (IFRS) 176 mTL 18% interest rates and bigger assets  Strong profit combined with lean capital ROE (IFRS) 35.4% +0.2 pts Profit for the Period (SFRS)  SFRS Profit continues to converge to IFRS Profit 170 mTL 19% ● Strong dividend growth in accordance with strong growth in SFRS profit, Dividend Paid (2) 60 mTL 24% while maintaining the Solvency Ratio above 190%  Significant YoY growth achieved thanks to protection business VNB 280 mTL 76% 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: Şirkete Özel (Internal) (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) 55% FMC % (inc. State contribution) CAGR: 14% 9% 1,6 1,6 1,5 1,5 1,4 1,4 1,3 CAGR: 25% 75,4 556,1 68,8 21% 480,2 61,7 CAGR: 25% 56,8 20.948 392,6 52,1 358,2 17.300 17.339 45,7 45,4 15.325 254,2 11.792 196,9 181,0 9.212 7.127 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2018 Q3 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 65 66 65 41 49 34 41 40 37 47 8% 207,1 18% CAGR: 18% 181,0 CAGR: 17% 31% 171,1 155,7 202,4 28,3 186,8 138,7 25,6 23,9 22,2 157,8 114,2 144,1 19,6 16,7 111,8 15,2 103,4 86,1 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 (restated) Source: Company information. 3 *Pension figures are including AE AvivaSA: Şirkete Özel (Internal)

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 Source: EGM as of 30.09.2019 4 AvivaSA: Şirkete Özel (Internal)

New Action Plan to Expand Life Protection + Personal Accident Q3 2019 YTD / Q3 2018 YTD Total Premium Growth Rate DSF+Agency * Non-Credit Linked 35% 214,5 mTL (35%) Bancassurance 50% 186,7 mTL (30%) Non-Credit Linked 65% 216,5 mTL (35%) Bancassurance Credit Linked 49% 617,7 mTL (Total Company) (Total Company) * Including Corporate and Telemarketing (non bancassurance) 5 AvivaSA: Şirkete Özel (Internal)

A Story of Solid Profitable Growth Shareholders’ Equity and Solvency Ratio (TLm) Profit for the Period (TLm) Solvency Ratio CAGR: +23% 200,6 18% 225% 139%* 150% 172% 193% 159% 191% 176,7 31% 149,8 144,7 CAGR: +17% 729,6 105,0 621,1 92,0 87,1 549,4 555,6 29,1 427,7 333,7 355,5 62,9 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 (restated) 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 ( restated ) Technical Profit After G&A (TLm) ≈ EBIT 2015 2014 2016 2017 2018 Q3 2018 Q3 2019 (restated) CAGR: +23% ROE -2% 174,1 29% 18%* 27% 30% 34% 35% 35% 138,3 135,5 *Before write-off RoE is 26%,Solvency ratio is 154% 117,9  Steady increase in shareholders’ equity reflects active management of 79,9 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 Q3 2018 Q3 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: Şirkete Özel (Internal)

Summary of P&L from IFRS Segmental Reporting 2015 Q3 2018 Q3 2019 2014 2016 2017 2018 CAGR YoY Q2 2019 Q3 2019 QoQ (restated) YTD YTD Pension Technical Profit 114,2 138,7 155,7 207,1 233,8 20% 171,1 181,0 6% 56,6 58,6 3% Life Protection Technical Profit 103,4 86,1 111,8 144,1 184,6 16% 157,8 186,8 18% 64,2 66,3 3% Life Savings Technical Profit 2,9 2,9 3,6 3,0 7,3 26% 5,9 3,6 -39% 1,7 0,8 -50% 22,2 17% 31% -7% Personal Accident Technical Profit 15,2 16,7 23,9 28,3 19,6 25,6 8,9 8,3 Total Technical Profit 235,6 249,9 287,8 378,1 454,0 18% 354,5 397,0 12% 131,3 133,9 2% General and Administrative Expenses -168,0 -184,0 -207,9 -260,2 -297,6 15% -216,1 -261,5 21% -87,2 -85,7 -2% Total Technical Profit after G&A Expenses 67,7 65,8 79,9 117,9 156,3 23% 138,3 135,5 -2% 44,1 48,2 9% Total Investment Income & Other 42,2 49,8 52,3 63,3 102,6 25% 56,0 93,0 66% 37,5 31,4 -16% Profit Before Taxes 109,9 115,6 132,2 181,2 258,9 24% 194,3 228,5 18% 81,6 79,7 -2% Profit for the Period (Before Write-Off) 87,1 92,0 105,0 144,7 200,6 23% 149,8 176,7 18% 64,7 60,7 -6% 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% 149,8 176,7 18% 64,7 60,7 -6% 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. At the end of 2015, it has been decided to discontinue the development of the new core insurance application. Instead, current core systems started to 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. Source: Company information, IFRS and segmental reporting. 7 AvivaSA: Şirkete Özel (Internal)

Summary of P&L from SFRS Segmental Reporting 2015 Q3 2018 Q3 2019 2014 2016 2017 2018 CAGR YoY Q2 2019 Q3 2019 QoQ (restated) YTD YTD Pension Technical Profit -19,5 -16,0 -13,9 11,9 59,2 n/a 42,5 54,7 29% 15,8 14,7 -7% Life Technical Profit 39,9 22,1 46,6 57,3 92,2 23% 85,5 57,2 -33% 21,2 21,5 1% Non-Life Technical Profit -1,7 6,4 -3,3 -0,5 0,9 n/a 1,0 4,0 297% 2,1 1,9 -11% Total Technical Profit after G&A Expenses 18,7 12,4 29,4 68,7 152,3 69% 129,0 115,9 -10% 39,1 38,0 -3% Total Investment Income & Other 39,7 46,9 50,5 57,9 93,3 24% 55,1 102,2 85% 39,1 35,3 -10% Profit Before Taxes 58,4 59,3 79,9 126,6 245,7 43% 184,1 218,1 18% 78,2 73,3 -6% Profit for the Period (Before Write-Off) 45,9 46,9 63,2 101,7 191,2 43% 142,5 169,5 19% 62,3 56,0 -10% 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% 142,5 169,5 19% 62,3 56,0 -10% 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. At the end of 2015, it has been decided to discontinue the development of the new core insurance application. Instead, current core systems started to 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. Source: Company information, SFRS and segmental reporting. 8 AvivaSA: Şirkete Özel (Internal)

Top Business Bec Become one one of of Main intain the he leading lea eadership ip Priorities players in pla n lif ife pos posit itio ion in n market… pension… Gen Generate Foc ocus on on strong IT IT customer cus progress… retention… True cus customer composit ite Di Digital Fi First / (Ca Captive Agency / Mobil ilApp 360 ° pr 360 prod oduct t mix) x) 9 AvivaSA: Şirkete Özel (Internal)

Market Consistent Embedded Value Disclosures 10