ANADOLU HAYAT EMEKLILIK A.S. COMPANY PRESENTATION

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ANADOLU HAYAT EMEKLILIK A.S.COMPANY PRESENTATION
November 2009
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Index
Corporate Profile
Lines of Business - Life Pensions
Financials
Stock Data
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Corporate Vision

• To be the leading company in Turkey in all
  aspects of personal financial planning concerning
  the future of Turkey and the Turkish people

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Corporate Profile

• First life insurance company in Turkey
• Established in 1990 as a subsidiary of Türkiye
  Is Bankasi
• Market leader in life insurance sector since
  establishment
• Has been operating in pension business since
  27.10.2003
• The only Life Pension company publicly traded
  (since 2000)

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Ownership Structure
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TOTAL NUMBER OF COMPANIES AS OF 30.06.2009
Insurance Companies (Insurance) 55
- Non-Life 32
- Life 10
- Life Pension 12
- Pension 1
Reinsurance Companies 1
Source Treasury
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TURKEY INSURANCE SECTOR Premium Productions as
of 2008
Total Premium Per Capita (USD) 123
Non-Life Premium Per Capita (USD) 107
Life Premium Per Capita (USD) 16
Total Premium Production (Billion USD) 8,8
Total Premium Production / GDP 1,20
Source Treasury
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TURKEY PENSION SYSTEMContributions as of 2008
Total Pension Fund System Contributions Per Capita (USD) 50
Total Pension Fund System Contributions (Billion USD) 3,6
Total Pension Fund System Contributions / GDP 0,58
Source Treasury
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Growth Strategy

• Shift Distribution Channel Strategy
• Focus on Bancassurance
• New Strategic Partnerships with Banks
• Expanding Direct Sales Team
• Improve agency profile
• Improve Customer Service Quality
• Improve HR quality and thus productivity
• Focus on Corporate Pension Business

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Network
Bancassurance
1085 branches
334 branches
330 branches
84 branches

• 258 Licensed Salesperson

4 branches
3 branches
Direct Sales

• 306 Exclusive Agencies
• 47 Brokers

Agents Brokers
Other

• Internet
• Call Centre

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Corporate Profile
Lines of Business - Life Pensions
Financials
Stock Data
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Lines of Business
Life Insurance
Pensions

• Endowment
• Term Life
• Annuities

• Individual
• Corporate

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Private Pension System in Turkey Basic Features

• Started on 27.10.2003
• 12 Licensed pension companies
• Third pillar system
• Defined contribution
• Voluntary participation
• Tax incentives for both participant employer
• Fully funded system
• Minimum retirement age is 56
• Funds are managed by asset management companies
• Separate pension accounts for each participant
• Participants have the right to
• Switch funds or pension plan
• Transfer accounts between pension companies once
  a year
• Merge their separate pension accounts
• Cease contribution payments
• Leave at anytime

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Private Pension System in Turkey Tax Incentives

• Contribution Stage
• Contributions are tax deductible up to 10 of
  income with a cap of annual minimum wage.
• Employer contributions are also tax deductible
  subject to the same limits
• Investment Stage
• Investment income of pension funds are tax exempt
• No stamp tax in setting up pension funds
• No tax on transactions in pension system
• Benefits payments
• 25 of retirement payments are exempt from income
  tax
• Residual is subject to a witholding tax of 5
• Early surrenders are subject to 15 or 10 (in
  case of completion of 10 yrs within the system)
  witholding tax with no exemption

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Private Pension System in Turkey
TREASURY
PENSION MONITORING CENTRE
MONEY AND CAPITAL MARKETS
ASSET MANAGEMENT
Reporting of Pension Accounts
PARTICIPANT SPONSOR
PENSION ACCOUNT ADMINISTRATION
FUND ADMINISTRATION
Reporting of Funds
Reporting of Pension Accounts
CUSTODIAN BANK
CAPITAL MARKETS BOARD
Anadolu Hayat Emeklilik Is Asset
Management, HSBC Asset Management, TEB Asset
Management Isbank
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Private Pension System in Turkey Overview as of
30.10.2009
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Private Pension System Outlook
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Private Pension SystemSectoral Expectations for
2013
Consolidated Expectations of Pension Companies for 2013 Median
Total Number of Participants (Individual) 2,300,000
Total Number of Participants (Group) 953,941
Total Number of Participants (Total) 3,250,000
Total Number of Contracts (Individual) 2,500,000
Total Number of Contracts (Group) 985,495
Total Number of Contracts (Total) 3,475,000
Total Amount to be Invested (mio YTL) 23,000
Total Amount of Participant's Funds (mio YTL) 28,355
Total Number of Participants to Opt Out 650,000
Total Number of Contracts to be Transferred 105,000
Total Number of Authorized Intermediaries 15,000
Source Pension Monitoring Center
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KEY DRIVERS FOR GROWTH IN PENSION BUSINESS

• Economic Improvements in Turkey
• Structural reforms
• Extended maturities
• Purchasing power
• Lack of confidence in the social security system
• Advantages of Pension System
• Tax incentives
• Transparent system
• Participating to the investment process
• New Regulations
• Vesting
• Right of transfers to the pension system

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KEY DRIVERS FOR OUR MARKET LEADERSHIP

• Distribution network
• Diversified products
• Fund performance
• Charging structure
• Service quality

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Private Pension System in Turkey Overview as of
30.10.2009
Number Of Participants Market Share Funds (mio TL) Market Share
AHE 424,800 21.9 1,875 21.6
XXX 386,893 20.0 1,262 14.6
XXX 300,897 15.5 1,887 21.8
XXX 264,516 13.7 1,303 15.0
XXX 155,113 8.0 487 5.6
Other 7 403,743 20.9 1,860 21.4
Total 1,935,962 100.0 8,674 100.0
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Private Pension Funds Mutual Funds
Fund Type Average Maturity Net Asset Value (mio TL) Equity () Turkish Treasury Bonds() Reverse Repo () Money Market Inst.() Foreign Currency Sec.() Other ()
PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS PRIVATE PENSION FUNDS
31.12.2008 376 6,369 7.83 69.73 15.56 0.01 0.53 6.34
30.10.2009 383 8,680 10.03 69.04 15.22 0.19 0.39 5.13
MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS MUTUAL FUNDS
31.12.2008 53 23,692 1.51 43.46 50.24 4.30 0.04 0.45
30.10.2009 100 32,022 2.55 39.19 52.92 4.19 0.08 1.07
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Pension Products Fund Menu
Conservative
Balanced
Aggressive

• Intnl. Mixed Fund
• Eurobond Fund
• Eurobond Fund
• Balanced Fund

• Cash Fund
• Conservative Fund
• Bond Fund

• Equity Fund
• Aggressive Fund

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31.12.2008-30.10.2009 Weighted Average Return
Private Pension Firm Net Asset Value (mio TL) Weighted Average Return ()
XXX 487 25.70
XXX 84 24.16
Anadolu Hayat Emeklilik A.S. 1,875 23.68
XXX 1,887 20.36
XXX 12 19.40
XXX 13 18.20
XXX 418 18.08
XXX 1,303 17.84
XXX 1,262 16.63
XXX 512 15.64
XXX 507 15.57
XXX 314 14.55
TOTAL 8,674 19.15
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As of 30.10.2009
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Pension Production by Channel
2007 2008 2009 / 10
Direct to Customer Direct Sales 2,1 3,4 3,4
Broker 1,0 1,0 1,0
Agency 4,4 6,2 5,4
BANCASSURANCE BANCASSURANCE BANCASSURANCE BANCASSURANCE
Is Bank 5,5 2,5 1,1
Is Bank Direct Sales 37,8 43,9 47,3
Is Bank Agency 18,3 19,0 19,3
HSBC 23,4 17,8 18,9
TEB Agency 7,0 4,9 2,4
Anadolubank 0,5 1,3 1,2
Total 100 100 100
67,7
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Pension Products Charging Structure Minimum
Contribution
 
ENTRANCE FEE
MANAGEMENT FEE
FUND MANAGEMENT FEE
MIN. CONTRIBUTION
Explanation Charging Method Limit Individual Pension Plans (3) Group Pension Plans (117)
At the phase of entrance to the System for each pension account Can be deferred till the leaving date or can be collected by installments ½ of Minimum Wage ½ of minimum wage Deferred till leaving within 5 yrs. After 5 yrs completion 0 0 to ½ of minimum wage Deferred till leaving within 5 yrs. for some plans After 5 yrs completion 0 for all plans
To cover administrative expenses On contributions 8 0 to 8 (depending on the contribution amount payment method) 0 to 5
To cover fund management expenses On NAV of each fund 1/10,000 (daily) 3,72 (annual) 2.5 (annual average) 1 to 2,6 (annual)
Min. monthly amount to be paid regularly for at least 10 yrs. - - 66 TL 42 TL
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Life Insurance in Turkey Market Shares (Premium
Production)
PENSION COMPANY 2006 2007 2008
AHE 25 24 22
XXX 13 15 19
XXX 9 11 9
XXX 7 8 8
XXX 8 7 7
XXX 6 6 5
Others 31 29 30
TOTAL 100 100 100
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Life Insurance in Turkey Market Shares
(Mathematical Reserves)
PENSION COMPANY 2007 2007 2008 2008
( Mio TL) ( Mio TL)
AHE 35,0 1.420 35 1.589
XXX 12 476 12 550
XXX 11 460 11 497
XXX 10 406 10 444
XXX 7 277 6 269
XXX 5 221 6 270
Others 20 795 21 972
TOTAL 100 4.054 100 4.591
Source Treasury
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Life Products / Profit Sharing Rates
YEAR PROFIT SHARE() USD() CPI()
1999 119 73 69
2000 43 24 39
2001 76 114 69
2002 62 14 30
2003 47 -15 18
2004 29 -4 9
2005 23 0 8
2006 16 5 10
2007 20 -17 8
2008 17 30 10
AVERAGE 45 22 27
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Life PortfolioTotal Number of Policies
2007 2008 2008 / 9 2009 / 9
Endowment 125.697 103.724 108.230 91.128
Annuity 39.394 39.223 39.349 39.876
Term Life 711.556 667.734 696.135 876.607
Total 876.647 810.681 843.714 1.007.611
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Life Portfolio Total Premium Production(TL)
2007 2008 2008 / 9 2009 / 9
Endowment 177.682.069 176.014.174 129.877.831 132.290.621
Annuity 111.279.994 134.910.683 107.193.049 211.036.912
Term Life 49.930.404 33.989.420 28.251.954 23.620.295
Total 338.892.467 344.914.277 265.322.834 366.947.828
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Life Portfolio Premium Production - New
Business (TL)
2008 2008 / 9 2009 / 9
Endowment 6.980.140 4.333.419 8.285.946
Annuity 134.910.683 107.193.049 211.036.912
Term Life 33.491.012 27.783.308 23.739.581
Total 175.381.835 139.309.776 243.062.439
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Life Production by Channel
2007 2008 2009 / 9
Agency Broker 40 43 34
Direct to Customer Direct Sales 23 30 34

Isbank 27 16 16
Isbank Direct Sales Agency 9 10 15
HSBC 1 1 1
Total 100 100 100
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Life Products Charging Structure
 
AGENCY COMMISSION
MANAGEMENT FEE
FUND CHARGE
RISK PREMIUM
Explanation Charging Method Limit Individual Life Products Group Life Products
- On premiums For term life products total of commission rates cannot exceed 25. For other products total of commission rates cannot exceed 50. Annual max.limit is 10 TRL - / 1.Year 30-20 2. Year 5-2 3. Year 3-2 Varies according to the group
To cover administrative expenses On premiums None TRL - / 1.Year 5-3 2. Year 4-3 3. Year 3-3 Varies according to the group
To cover fund management expenses On current years revenues Max. 15 of the revenues 5 10 for early surrenders 5 10 for early surrenders
Depends on the age and sex of the insured On premiums No minimum or maximum limits - -
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Corporate Profile
Lines of Business - Life Pensions
Financials
Stock Data
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Financial Highlights
( Mio TL) 2007 2008
Written Premium 337 345
General Technical Profit 8 18
Total Assets 2.825 3.400
Paid-In Capital 175 250
Shareholders Equity 344 350
Math. Profit Sharing Provisions 1.453 1.608
Net Profit 45 53
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Financial Highlights
(Mio TL) 2008/9 2009/9
Written Premium 265 367
General Technical Profit 4 13
Total Assets 3.190 4.281
Paid-In Capital 250 250
Shareholders Equity 329 414
Math. Profit Sharing Provisions 1.561 1.858
Net Profit 30 62
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Allocation of Period Profit
  2008 2007 2006 2005
Net Profit (TL) 52.905.238 45.481.212 25.285.434 41.031.408
Net Distributable Profit (TL) 50.211.779 43.472.277 23.973.676 34.216.634
Dividend to Shareholders (TL) 42.000.000 35.000.000 12.000.000 15.000.000
- Cash 42.000.000 15.000.000 12.000.000 5.000.000
- Bonus Share - 20.000.000 - 10.000.000
Cash / Net Profit () 79,39 32,98 47,45 12,18
Cash / Net Distributable Profit () 83,65 34,50 50,05 14,61
Bonus Share / Net Profit () - 43,97 - 24,37
Bonus Share / Net Distributable Profit () - 46,00 - 29,22
Dividend to Shareholders / Net Profit () 79,39 76,95 47,45 36,55
Dividend to Shareholders / Net Distributable Profit () 83,65 80,51 50,05 43,83
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Capital Adequacy
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Financials Income Statement
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Financials Income Statement
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Financials Balance Sheet
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Financials Balance Sheet
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Corporate Profile
Lines of Business - Life Pensions
Financials
Stock Data
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ANADOLU HAYAT EMEKLILIK Stock Data
Year Year-end Price () MCAP()
2003 0,56 140.000.000
2004 0,98 245.000.000
2005 1,80 450.000.000
2006 2,05 512.500.000
2007 2,55 637.500.000
2008 0,83 207.500.000
2009/10 2,66 665.000.000
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