page Under the wings of the lion Generali

page Under the wings of the lion

Generali Kazakhstan Generali PPF Holding Generali Group • Founded in 1831, Headquarter in Trieste (Italy) • Operating in more than 60 countries • Included to the TOP-40 largest companies in the world • Top 3 in European life insurance market • Over 65 million clients • Over 82 000 employees • Total written premiums in 2011 exceeded € 69 billion • Manages the assets of € 460 billion • 2007 - Establishment of holding company Generali PPF Holding B. V. page 2

page 3 Generali Kazakhstan Generali PPF Holding Created in 2007 Generali PPF Holding became leading insurer in CEE Leading European insurer in Life&Health and P&C segments: ► 65 Mln. clients ► 82 Ths. employees ► 69 Bln. Euro 2011 GPW ► 460 Bln. Euro Au. M 51% One of the largest finance groups in CEE. Approx. EUR 13 B under management. Businesses in: ►Banking ►Real estate ►Consumer electronics ►Agriculture ►Energy and mining 49% Countries of operation ►Belarus ►Bulgaria ►Croatia ►Czech Republic ►Hungary ►Kazakhstan ►Montenegro ►Poland ►Romania ►Russia ►Serbia ►Slovakia ►Slovenia and Ukraine More than 13 million clients Assets of € 14. 8 billion GPW € 3. 3 billion in 2011

page 4 Generali Kazakhstan Generali PPF Holding Life Insurance Market Structure in Kazakhstan – GLKZ Main Focus on Traditional Life Insurance LIFE INSURANCE Traditional Life Insurance Life Endowment Term Life Annuity Insurance Annuities under Pension annuities. Other annuities Workmen's’ compensation contracts

Generali Kazakhstan Generali PPF Holding Generali Life Kazakhstan • One of the leaders on the Kazakhstan insurance market; • Specialized in Life Insurance and Personal Accident; • Representative of Generali Employee Benefits (GEB): – a world-leading provider of employee benefit solutions for multinational companies. Following the results of 2011 «Generali Life» : • № 1 on the traditional life insurance market • The only international life insurance company • Total premiums collected - 30 mln Euro page 4

Generali Kazakhstan Generali PPF Holding page 6 Life Insurance Market Growth • The fastest growing segment in KZ insurance market. • Traditional Life insurance market growth – 420. 6% (12. 4 m. EUR): Main driver is bank assurance • Annuity insurance market growth – 52. 7% (34. 9 m. EUR)

page 7 Generali Kazakhstan Generali PPF Holding Market Position Accident insurance GPW amongst life insurers in 1 Q 2012 22. 0% § 7 life insurers (overall 36 insurers) Generali BTA Life § Life GPW share is 16. 2% in Total GPW (vs. 15. 3% in 2011) 1. 9% 0. 5% Kaz. Kom Life Halyk Life Generali Life market shares: 75. 5% § No. 3 in whole Life market with 15. 4% market share Traditional Life + workmen’s compensation annuities GPW in 1 Q 2012 § No. 1 in Accident (amongst life insurers) with 75. 5% market share § No. 1 in Traditional Life incl. workmen’s compensation annuities with 52. 1% 1. 1% 7. 4% 0. 2% Generali BTA Life Kaz. Kom Life Halyk Life Nomad Life 52. 1%Alliance Life 29. 1% § 1 Q 2011 – 1 Q 2012 Generali’s total growth rate 322. 4% 10. 1%

Generali Kazakhstan Generali PPF Holding page 8 Generali Employee Benefits - GEB

Generali Kazakhstan Generali PPF Holding Generali Employee Benefits • Consolidates a Clients worldwide Employee Benefits assets & liabilities in coordinated global plans • Each local insurance company of the Network is linked to GEB via a Reinsurance Treaty. • Local contracts are reinsured to Generali, in most cases 100%, i. e. Generali is the ultimate bearer of the risk. GEB provides: • Pooling arrangements • Captive solutions • Reinsurance page 9

Generali Kazakhstan Generali PPF Holding Pooling Arrangements Main advantages: • Financial return (experience rating); • Active risk management (Stop Loss, Loss Carry Forward, Pooling Point); • Better coordination of Employee Benefits plans; • Economies of scale thank to a better control on local costs; • Flow of information through a unique interface. Azerbaijan 1 Client Insurer Georgia Client 1 2 Insurer 2 Country. . . 1 Client Insurer GEB (Generali Trieste) Global customer account page 11

page 10 Generali Kazakhstan Generali PPF Holding Reinsurance to Captive Company Main advantages: • Tax efficiency; • Cash flow management; • Efficient use of capital; • Custom coverage otherwise unavailable; • Clear reports and easily accessible data warehouse. Azerbaijan 1 Client Insurer Georgia 2 1 Client Insurer 2 Country. . . Client 1 Insurer GEB (Generali Trieste) 3 Captive

Generali Kazakhstan Generali PPF Holding Generali Employee Benefits • Supplier of social programs for multinational corporations; • Operates since 1966; • Headquarters - Brussels, Belgium; • One of the three largest global network in the world; • World market share of corporate life insurance over 25%; • GEB total written premiums in 2011 exceeded 1. 5 billion Euros page 1 2

Generali Kazakhstan Generali PPF Holding page 1 3 GEB’s Global Clients And others, total 50 companies

Generali Kazakhstan Generali PPF Holding Credit Life page 23

Generali Kazakhstan Generali PPF Holding page 15 Benefits of Bank Assurance To the banks • Fee based income • Increase of return on assets • Increase staff productivity • Profitability • Enhances customer relationship • Creating universal banking platform • Increasing customer base To the insurers • Cheaper than agents • High penetration • Cost reduction • Greater control of their business • Target middle income customers • Provides competitive advantage To the customers • Reduced costs • Good quality product • Time saving and convenience • Security of finance exposure

Generali Kazakhstan Generali PPF Holding Disadvantages of Bank Assurance § § § Insurance is bought in order to have a loan Low understanding of the product purchased Reputational risk due to misunderstanding of the product by insureds page 22

Generali Kazakhstan Generali PPF Holding Reinsurance page 16

Generali Kazakhstan Generali PPF Holding Reinsurance • Life insurance • Medical insurance (to be available in 2013) • Strong financial rating: S&P «АА-» • The amount of reinsured premiums for Y 2011 - 99 538 982 Euro • Strong capital position: § Excess capital of € 2 billion § Low equity exposure § High quality asset portfolio page 14

Generali Kazakhstan Generali PPF Holding Reinsurance Accreditation in Azerbaijan Generali Life Kazakhstan is approved as reinsurer by Republic of Azerbaijan Ministry of Finance. page 15

Generali Kazakhstan Generali PPF Holding Endowment Life Insurance page 16

Generali Kazakhstan Generali PPF Holding page 18 Endowment Products Main Programme • Maturity • Death due to any reason Accidental: Endowment Products Additional coverages • Death; • Disability group 1 – 2; • Bodily injuries; • Temporary disability; • Hospitalization. Additional coverage for the Insurant • The premium-exemption due to disability group

Generali Kazakhstan Generali PPF Holding page 20 Distribution Channels in Europe • European insurers use a wide range channels • The importance of each distribution channel varies according to local specificities, national legislation, the type of product, consumer preferences, etc.

page 21 Generali Kazakhstan Generali PPF Holding Distribution Channels in Kazakhstan • Endowment market is less developed than in Europe • MLM is the main sales channel • Tied agents is second largest channel • Banks are on the early development stage (mainly segmented clients) 1 Client 1 Insured Agent 2 Network Leading Agent 3 MLM Agency 4 Generali

Generali Kazakhstan Generali PPF Holding Advantages and Disadvantages of Distribution Channels MLM Advantages: § Boost and rapid sales from the beginning § Motivated sales force § Finance savings on advertising Disadvantages: § Spoiled reputation of MLM structures § Lack of insurance knowledge of MLM agents § MLM-Network leads to higher rate of insurance premium which supports MLMNetwork commissions § Non-insurance motivation for policy purchase page 22

Generali Kazakhstan Generali PPF Holding Advantages and Disadvantages of Distribution Channels Direct sales and Tied agents Advantages: § Full control and responsibility on sales § Strong reputation § Agents deeply knows the product Disadvantages: § High fixed costs (salaries, trainings, offices…) § Slow and gradual start of sales focused on long-term success page 22

Generali Kazakhstan Generali PPF Holding Distribution Channels Development Strategy § § § Continue cooperation with MLM Networks Development of Tied agents on “Step-by-Step” mode Tied agents shall act as finance consultants Start cooperation with the banks offering products: ─ Linked to deposits ─ Combined with assistance services Understanding and developing true meaning and values of products page 22