INVESTOR PRESENTATION 17Q2 Company & Market Potential 3 - PowerPoint PPT Presentation

INVESTOR PRESENTATION 17Q2

Company & Market Potential 3 Company Overview 11 Financial Highlights 22 2

Company & Market Potential Company Overview Financial Highlights 3

Premium Production -17Q2 Number of Companies (17Q2) Number of Foreign Shared Companies Premium Production (₺ Bn) Non Life 39 Non Life 26 30% Life 22 Life 18 35,4 Reinsurance 2 Reinsurance 1 20% Total 63 Total 45 27,3 22,7 PREMIUM 17Q2 Life; 3,3 ₺ Bn; 14% 5,0 3,8 3,3 12.14 12.15 12.16 Non-Life; 19,8 ₺ Bn; Non Life Life 86%  SOURCE: Association of Insurance Companies

Mandatory Policies in Turkey (Earthquake & MTPL) EARTHQUAKE MTPL  17,6 million houses  21,6 million vehicles  54% of houses are non-insured  23% of vehicles are non-insured  SOURCE: turkstat, State Planning Organization, Association of Insurance Companies, bkm, tramer, TCIP

M&A in the Sector ˜$3,8Bn total M&A’s since 2006 2006 2007 2008 2010 2011 2014

Non-Life Trends in the Sector Non-Life Premium Per Person Premium / GDP Premium Per Person 2016 505 (%) ($) World 2,81 285 361 305 308 USA 4,29 2.449 219 215 165 163 UK 2,58 1.031 138 118 143 144 133 124 123 114 108 Switzerland 4,12 3.233 106 102 93 Poland 1,92 238 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Turkey 1,36 144 Premium($) Premium(TRY)  SOURCE: Treasury, Association of Insurance Companies, Swiss Re Sigma 3,2016

Top 10 Companies in the Sector -17Q2 Allianz Premium Production Non Life Companies 13% (₺ Mn) Other Allianz 2.604 Anadolu 33% 12% Anadolu 2.333 Axa 1.421 Mapfre 1.406 Axa .. .. 7% . . Mapfre Top 10 Companies 13.333 7% Other 6.489 5 to 10 Total 19.822 28%  SOURCE: Association of Insurance Companies

Non-life Companies Premium Production Anadolu Sigorta ( ₺ Mn) Non-Life Sector ( ₺ Mn) 17Q2 16Q2 (YoY) 17Q2 16Q2 (YoY) Branch GPW GPW Growth GPW GPW Growth MTPL 620 945 -34% 5.839 6.540 -11% MOD 461 485 -5% 3.285 3.044 8% Fire and Nat. D. 417 360 16% 2.897 2.382 10% Health 303 221 37% 2.737 2.323 18% Other 532 428 24% 5.065 4.125 23% Total 2.333 2.439 -4% 19.822 18.415 8%  SOURCE: Association of Insurance Companies

Aspects of Pooling System Includes high-risk policies; MTPL Pool Regulation Commercial vehicles (taxi,minibus, bus and trucks) + non-commercial vehicles at 1st, 2nd & 3rd segments Agency commission Premium & Claims distrubition; decreased to 8% 50% of them to be distributed to from 10% all companies equally, 50% of will be calculated based on last three years market share Discount rates dropped; %5 commission Commercial vehicles at 5th, 6th & will be paid to the issuer 7th segments reduced to 10%, company for claim 20% & 30% from 15%, 30%, 45% management respectively => %13 Premium increase

Company & Market Potential Company Overview Financial Highlights 11

History o Founded by Mustafa Kemal Atatürk in 1925 o First national insurance company o Main activity: Non-life insurance(until 1991, both life and non-life) o group company

Shareholder Structure (17Q2) Milli Reasürans Türk Anonim Şirketi 286.550.106 57,3% Other QİNVEST Portföy 30.693.090 6,1% 43% Nemtaş Nemrut Liman 26.444.763 5,3% Other 156.312.041 31,3% Total 500.000.000 100,0% Milli Reasürans 57% 77% of Milli Reasürans is owned by T. İş Bankası

Distribution Channels (17Q2) Samsun İstanbul (2) Trabzon Bursa Ankara İzmir Adana Gaziantep Antalya N. Cyprus 2.447 Professional • ~25% working exclusively with Anadolu Agencies • Working exclusively with Anadolu 1.365 Işbank Branches

Distribution Channels (17Q2) Direct Indirect 1% 7% Broker 12% 13% Agency 67%

Bancassurance Potential o Share of production 11,5%  13% in 17Q2 o ₺300 mn GWP in 17Q2 2016 516mn 2015 423mn 2014 325mn ˜ 15 M 2013 269mn İşbank 2012 Customer 204mn

Production by Regions (17Q2) Marmara Black Sea 56,2% 6,5% East Anatolia 2,4% Middle Anatolia 14,7% Aegean 9,2% South East Anatolia 3,1% Mediterranean 7,9% 17

Production by Branches (17Q2) GPW ₺ Mn MTPL; 620; 26% Other; 531; 23% Branch Market Share Rank MTPL 10,6% 2 MOD 14,1% 1 Total: ₺ 2,33 Bn Fire 14,4% 1 Health; 303; 13% Health 11,1% 3 Total 11,8% 2 MOD; 462; Fire and Nat. 20% D.; 417; 18%  SOURCE: Association of Insurance Companies

Combined Ratio 120% 111% 107% 107% 106% 103% 103% 101% 9% 9% 9% 8% 100% 9% 9% 17% 10% 15% 15% 14% 14% 15% 15% 80% 85% 84% 83% 83% 80% 79% 76% 60% 40% 20% 0% 2012 2013 2014 2015 2016 17Q1 17Q2 Claims Ratio Net Comm. Ratio Expense Ratio

Profitability Technical Balance (mn TRY) 1H17 1H16 MOD 35,6 49,2 MTPL 36,8 -34,9 Fire 8,4 31,6 Health -9,1 3,2 P.Accident 37,5 25 Total 106,9 91,9 Combined Ratio 1H17 1H16 MOD 100,7% 95,3% MTPL 106,9% 124,2% Fire 109,7% 84,9% Health 117% 105% P.Accident 59,3% 60,3% Total 106,2% 105,5% 20

IBNR Reserve Development (mn.TRY) 111 mn TRY 50 mn TRY 805 719 659 259 633 694 222 644 566 69 120 564 460 446 437 310 2014 2015 1Q16 2Q16 3Q16 2016 1Q17 2Q17 21

Company & Market Potential Company Overview Financial Highlights 22

Growth Performance Tech. Reserves (mn TRY) Total Assets (mn TRY) 10 % 4.293 9 % 3.914 6.527 5.974 2.934 4.888 2.282 3.773 1.851 3.253 2013 2014 2015 2016 2Q17 2013 2014 2015 2016 2Q17 Shareholders' Equity (mn TRY) Cash and Marketable Sec. (mn TRY) 9% 1.332 4.210** 10 % 1.223 1.202 3.832* 1.020 913 2.776 2.250 1.785 2013 2014 2015 2016 2Q17 2013 2014 2015 2016 2Q17 • * 134 mn financial loans excluded 23 • ** 173 mn financial loans excluded

Balance Sheet Assets ( ₺ Mn) 30.06.2017 31.12.2016 Liabilities ( ₺ Mn) 30.06.2017 31.12.2016 Cash + Marketable Sec. 4.383* 3.966** Payables 735* 666** Receivables 1.076 1.049 Technical Provisions 4.293 3.914 Equity Participations 474 427 Shareholders' Equity 1.332 1.223 Fixed Assets 154 158 Other Liabilities 167 171 Other Assets 440 374 Assets 6.527 5.974 Liabilities 6.527 5.974 * 173 mn financial loans included ** 134 mn financial loans included

Income Statement – 1H17 ( ₺ mn) Change (%) P&L 1Q17 2Q17 1H17 1Q16 2Q16 1H16 (1H16-1H17) Tech. Income 864 850 1.714 708 775 1.483 16% Tech. Expenses -887 -932 -1.819 -772 -792 -1.564 16% Net Financial Inc. + Other Exp. 108 108 216 70 71 141 53% Gross Profit 85 26 111 5 55 60 83% Tax -23 -2 -25 -3 -11 -14 78% Net Profit 62 24 86 2 44 46 85%

Profitability ROE 7,39 7,18 7,02 6,46 5,31 2013 2014 2015 2016 1H17 ROE - consolidated 10,54 10,20 9,90 8,70 7,87 2013 2014 2015 2016 1H17

Affiliates - 17Q2 Equity (₺ M) 430 914 Market Cap (₺ M) 2.382 1335 Share Owned 20,0% 4,8% Share Value (₺ M) 476 64 Mcap : ₺1.410 mn Mcap : ₺870 mn Affiliates Deducted P / BV: 1,06 P / BV: 0,95

Stock Performance 2,82 2,90 113.000 2,70 2,58 2,50 2,41 2,50 103.000 2,36 2,30 2,16 93.000 2,10 1,88 1,84 83.000 1,90 1,72 1,68 1,68 1,68 1,67 1,65 1,65 1,64 1,70 1,59 1,58 1,55 73.000 1,50 63.000 1,30 12.15 01.16 02.16 03.16 04.16 05.16 06.16 07.16 08.16 09.16 10.16 11.16 12.16 01.17 02.17 03.17 04.17 05.17 06.17 BIST-100 ANSGR  Increase in ANSGR in 18 months: 82%  Increase in BIST-100 in 18 months: 40%

Investment Portfolio Other Stocks In 1H17; 1% 4% Bonds Dividend from ANHYT 28 mn TRY 10% Investment Income * 247 mn TRY Average Portfolio Income 14,1% Deposits Funds 74% * ANHYT dividend excluded. 11% TOTAL: TRY 3,82 Billion Booked Value: ₺434 Mn  TRY 3,41 bn at 31.12.2016 29

Thank you … For further information please e-mail to: investor.relations@anadolusigorta.com.tr or call Anadolu Sigorta Investor Relations on (+90 850 744 02 54), (+90 850 744 01 64) This presentation contains forward-looking statements and information on the business development of Anadolu Sigorta. These statements may be spoken or written and can be recognized by terms such as “ expects ”, “ anticipates ”, “ intends ”, “ plans ”, “ seeks ” or words with similar meaning. These statements are based on assumptions relating to the development of the economies of individual countries, and in particular of the insurance industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given involve a degree of risk, and the actual developments may differ from those forecasts. Anadolu Sigorta does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its content due to misleading information in this document.