Presentation to Investors Q1 2019 Earnings Release April 30, 2019 - PowerPoint PPT Presentation

Presentation to Investors Q1 2019 Earnings Release April 30, 2019

Solid Financial Foundations and Historical Track Record of Value Creation 2019 Q1 YoY /Δ Pension AUM (inc AE) 12% 17.9bTL  AvivaSA has maintained #1 position in terms of AuM Total GWP (Life+PA) 26% 177 mTL  Focus on standalone products(ROP) helped to increase 26% YoY Total Technical Profit 24% 124 mTL  Steady increase thanks to pension scalability and high profitability in protection segments Expense Ratio (1) 3.5 pts 47.9%  The decrease is due to higher increase in profit compared to the expense base for the ratio Profit for the Period (IFRS) 51 mTL 41%  In Addition to 24% increase in technical profit, financial income is higher than prior year  Strong profit combined with lean capital ROE (IFRS) +3.3 pts 32.6% Profit for the Period (SFRS) 51 mTL 56%  SFRS Profit has converged to IFRS Profit ● Strong dividend growth in accordance with strong growth in SFRS profit, Dividend Paid (2) 60 mTL 24% whilemaintaining theSolvency Ratio >150%  higher performance in the life sales, dominated by the return of premium sold through VNB (Net of tax) 74 mTL 40% bancassurance channel. Note: (1) Expense ratio=(Opex-AE Related Expenses-Sales Expenses)/(Opex-AE Related Expenses-Sales Expenses+IFRS Proft Before Tax) « Opex=G&A+Financial Expense » 2 (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 1,4 1,4 CAGR: 25% 75,4 68,8 12% 480,2 CAGR: 25% 17.300 17.865 392,6 52,1 15.926 15.325 45,7 26% 45,4 27% 11.792 254,2 9.212 196,9 25,8 181,0 7.127 149,4 20,4 117,7 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 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 52 61 41 49 34 41 40 31 47 207,1 CAGR: 16% CAGR: 17% 184,6 155,7 28,3 138,7 144,1 17% 23,9 22,2 114,2 111,8 36% 103,4 16,7 62% 86,1 15,2 65,7 56,2 49,0 8,5 35,9 5,3 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 (restated) Source: Company information. 3 *Pension figures are including AE

One of the Leading Company in Auto Enrolment Market Supported by Selective Presence Market Shares ( Σ of Rounds 1-6) Result ults and nd Lesson ons Learned d So o Far Number of Participants  More fragmented than regular 7% Other (8 Companies) 12% 16% pensions State (3 Companies)  Servicing capability is very important 30% Top Competitors (3  Banks play a key role: AvivaSA 38% Companies) achieved it’s targets mainly utilizing AvivaSA Akbank potential 92% 41%  Cannibalization on private pension 24% system was lower than expected  Average opt-out ratio ~60% in the 22% 17% market 1% Public Private Total 4 Source: EGM as of 31.03.2019

New Action Plan to Expand Life Protection + Personal Accident Q1 2019 / Q1 2018 YoY Total Premium Growth Rate DSF+Agency * Non-Credit Linked 44% 69,2 mTL (39%) Bancassurance Non- 47% 61,1 mTL (34%) Credit Linked -7% 47,2 mTL (27%) Bancassurance Credit Linked 26% 177,4 mTL (Total Company) (Total Company) 5 * Including Corporate and Telemarketing (non bancassurance)

A Story of Solid Profitable Growth Profit for the Period (TLm) Shareholders’ Equity and Solvency Ratio (TLm) Solvency Ratio CAGR: +23% 225% 139%* 150% 172% 193% 147% 154% CAGR: +17% 621,1 565,0 549,4 92,0 41% 200,6 485,2 427,7 29,1 144,7 355,5 333,7 16% 105,0 87,1 62,9 51,3 36,3 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 (restated) 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 ( restated ) Technical Profit After G&A (TLm) ≈ EBIT 2015 2014 2016 2017 2018 Q1 2018 Q1 2019 (restated) CAGR: +23% ROE 156,3 29% 18%* 27% 30% 36,9% 29,9% 32,6% *Before write-off RoE is 26%,Solvency ratio is 154% 117,9 20% 79,9  Steady increase in shareholders’ equity reflects active management of 67,7 65,8 capitalization to fund business growth 35,8 29,8  Capital- light business, which benefits from AvivaSA’s measured approach to risk 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 and new product introduction (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..

… Solid and Resilient Technical Profitability with Operating Leverage Potential… Expense Ratio (%) Technical Profit (TLm) Expense ratio=(Opex-AE Related Expenses-Sales Expenses)/(Opex-AE Related Expenses-Sales Expenses+IFRS Proft Before Tax) 62,0% 56,0% 53,3% 51,4% 50,1% 47,9% 45,6% CAGR: 18% 454,0 CAGR: 15% 378,1 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 * ** 24% 297,6 287,8 260,2 Breakdown of Gen. Expenses, IFRS (Q1 2019) 249,9 235,6 26% 207,9 Other Marketing Expenses 184,0 168,0 20% 4% 124,4 100,3 88,6 70,5 Sales Personnel Expenses 35% 2014 2015 2016 2017 2018 Q1 2018 Q1 2019 ** HO Personnel (restated) Expenses 27% Technical Profit G&A IT Expenses 11% Sales Expenses 3% Source: Company information *Excluding write-off 7 ** Excluding one off costs (8,5 million TL), G&A expenses yoygrowth rate would decrease to %17,2 from %25,7 and expense ratio would be %43,5.

Summary of P&L from IFRS Segmental Reporting 2015 2014 2016 2017 2018 CAGR Q1 2018 Q1 2019 YoY (restated) Pension Technical Profit 114,2 138,7 155,7 207,1 233,8 20% 56,2 65,7 17% Life Protection Technical Profit 103,4 86,1 111,8 144,1 184,6 16% 35,9 49,0 36% 2,9 26% -61% Life Savings Technical Profit 2,9 3,6 3,0 7,3 2,9 1,1 Personal Accident Technical Profit 15,2 22,2 16,7 23,9 28,3 17% 5,3 8,5 62% Total Technical Profit 235,6 249,9 287,8 378,1 454,0 18% 100,3 124,4 24% General and Administrative Expenses * -168,0 -184,0 -207,9 -260,2 -297,6 15% -70,5 -88,6 26% Total Technical Profit after G&A Expenses 67,7 65,8 79,9 117,9 156,3 23% 29,8 35,8 20% Total Investment Income & Other 42,2 49,8 52,3 63,3 102,6 25% 17,9 31,4 76% Profit Before Taxes 109,9 115,6 132,2 181,2 258,9 24% 47,7 67,2 41% Profit for the Period (Before Write-Off) 87,1 92,0 105,0 144,7 200,6 23% 36,3 51,3 41% 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% 36,3 51,3 41% 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 Surce: Company information, IFRS and segmental reporting. * Excluding one off costs (8,5 million TL), G&A expenses yoygrowth rate would decrease to %17,2 from %25,7.

Summary of P&L from SFRS Segmental Reporting 2015 Q1 Q1 2014 2016 2017 2018 CAGR YoY (restated) 2018 2019 Pension Technical Profit -19,5 -16,0 -13,9 11,9 59,2 n/a 17,3 24,2 40% Life Technical Profit 39,9 22,1 46,6 57,3 92,2 23% 12,2 14,5 19% Non-Life Technical Profit -1,7 6,4 -3,3 -0,5 0,9 n/a -1,8 0,0 n/a Total Technical Profit after G&A Expenses 18,7 12,4 29,4 68,7 152,3 69% 27,7 38,8 40% Total Investment Income & Other 39,7 46,9 50,5 57,9 93,3 24% 15,2 27,8 83% Profit Before Taxes 58,4 59,3 79,9 126,6 245,7 43% 42,9 66,5 55% Profit for the Period (Before Write-Off) 45,9 46,9 63,2 101,7 191,2 43% 32,8 51,1 56% 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% 32,8 51,1 56% 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. 9 Source: Company information, SFRS and segmental reporting.

Top Business Become one of Maintain the leading leadership Priorities players in life position in market… pension… Generate Focus on strong IT customer progress… retention… True customer Digital First / composite MobilApp (Captive Agency / 360 ° product mix) 10

Market Consistent Embedded Value Disclosures 11