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Press conferencePress conference

Jahorina osiguranje adJahorina osiguranje ad

Dr Miroslav Miskic,

General Manager "Jahorina osiguranje" ad Pale – RS/BiH

Banja Luka , April 18, 2012

Insurance market in BH

Macroeconomic indicators 2009 2010

Population (millions) 3,84 * 3,84 *

GDP (BAM billions) 24,0 25,2

GDP per capita (BAM) 6.250 6.560

Growth of real GDP, % change -3,1 0,5

Unemployment rate 42% 42%

Inflation rate -0,4 2,4

Rating: Standard & Poor's: B+/Stable/B

1 EUR = 1,95583 BAM(*) – evaluation according to MMF and Global Finance

- Total share of insurance (share of annual premium per capita) in Bosnia and Herzegovina in 2010 amounted approximately 63 EUR

- In comparison with approximately 75 EUR in Serbia

- And with over 2.500 EUR in 15 EU countries

ABOUT JAHORINA OSIGURANJE

• "JAHORINA OSIGURANJE" AD Pale, established on August 11, 1992 as a mixed owned joint stock company.

• As of September 02, 2002 registered as a joint stock company with legal and natural entities as founders.

• As of January 20, 2012 Jahorina osiguranje ad is 100% owned by Vienna Insurance Group

• Insurance company „Jahorina osiguranje“ а.d. has been registered for following groups of business activities:

66030 Other insurance 66010 Life insurance (from IQ 2010) 67200 Auxiliary activities for insurance.

ABOUT JAHORINA OSIGURANJE

• „Jahorina osiguranje“ a.d. Pale operates at entire territory of Bosnia and Herzegovina.

• Business network comprises 8 branch offices with over 40 local offices and field offices throughout BH.

• Company is founder and owner of „Jahorina auto“ DOO, with capital share of 100%.

• „Jahorina auto“ DOO is specialized for vehicle technical checkup services and has widespread network of 30 stations for technical checkup of vehicles in all Republic Srpska.

ABOUT JAHORINA OSIGURANJE

Since 2002, the Company has Certificate of Quality Management System ISO 9001 : 2000, given by RW

TÜV Essen

JAHORINA AT THE BH MARKET

- Leading company – absolute leader in RS, progressive growth in FBHLeading company – absolute leader in RS, progressive growth in FBH

- Growth of market share of Jahorina osiguranje ad in BH is constant in last Growth of market share of Jahorina osiguranje ad in BH is constant in last years years

- Jahorina osiguranje ad Jahorina osiguranje ad was the first in RS at the end of was the first in RS at the end of 20112011 with 15,9% of with 15,9% of shareshare

- Takes 8Takes 8thth position on BH insurance market with 5,1% of share position on BH insurance market with 5,1% of share

- THE COMPANY VALUE exceeds 40 mill BAM (according to THE COMPANY VALUE exceeds 40 mill BAM (according to DUE DILLIGANCE DUE DILLIGANCE E&YE&Y evaluation evaluation))

JAHORINA in 2011

- Total income of the Company Total income of the Company 30,8 MIL30,8 MILL BAML BAM

- Expenditures in 2011 amounted Expenditures in 2011 amounted 30.2 MIL30.2 MILl BAMl BAM

- 24,5 MILL BAM of premium was invoiced in 2024,5 MILL BAM of premium was invoiced in 201111, and collected over 23, 1 , and collected over 23, 1 MILL BAMMILL BAM

- We paid We paid 88,,22 MIL MILLL BAM forBAM for 33765765 claims in 2011 (claims in 2011 (88,,33 mil mill BAM forl BAM for 3 3558558 claimsclaims in in 20102010))

- Profit was Profit was 555454.000 .000 BAM in 2011BAM in 2011

JAHORINA TODAY

- We have 215 employeesWe have 215 employees

- We sold We sold 2517 2517 risk packages, as a new productrisk packages, as a new product

- We insured approximately We insured approximately 65.000 65.000 motor vehicles against liabilitymotor vehicles against liability

- Casco insurance of approximately Casco insurance of approximately 2.800 2.800 vehiclesvehicles

- Approximately 1.020 life insurance policiesApproximately 1.020 life insurance policies

- Achieve long term cumulative growth of premium and Achieve long term cumulative growth of premium and incomes (ultimate goal)incomes (ultimate goal)

- Continuous training and development of young talents Continuous training and development of young talents

- Employment of experienced professionalsEmployment of experienced professionals

- Investment in long term relationships with clientsInvestment in long term relationships with clients

- Efficient, fair and quick settlement of claimsEfficient, fair and quick settlement of claims

- Continuous spreading of insurance business in all aspectsContinuous spreading of insurance business in all aspects

- Adequate portfolio structure with focus on life insuranceAdequate portfolio structure with focus on life insurance..

BUSINESS STRATEGY

Fundamental plan goals for 2012 are:

- Invoiced premium in amount of 26,7 MILL BAM

- Collected premium in amount 26,2 MILL BAM

- Expected amount of paid claims 8,5 MILL BAM

- Expenditures of conducting insurance 12,0 MILL BAM

- Expected profit 0,76 MILL BAM

- Number of permanently employed workers 249

PLAN FOR 2012

ACHIEVED IN IQ 2012

Invoiced premium BAM % Collected

premium BAM %

MTPL 3.420.129 63,86% 3.412.402 59,66%

CASCO 539.133 10,07% 496.488 8,68%

Property other 1.225.328 22,88% 1.656.491 28,96%

Non-life total 5.184.590 96,81% 5.565.381 97,30%

Life 170.702 3,19% 154.373 2,70%

GRAND TOTAL 5.355.292 100,00% 5.719.754 100,00%

JAHORINA IN VIG

- Jahorina osiguranje ad Jahorina osiguranje ad owned 100% by VIG since January 20, 2012owned 100% by VIG since January 20, 2012

- Extraordinary Assembly held on February 21, 2012 in TrebinjeExtraordinary Assembly held on February 21, 2012 in Trebinje

- New MANAGEMENT BOARD electedNew MANAGEMENT BOARD elected

- We are getting used to work in the great and powerful international We are getting used to work in the great and powerful international groupgroup

CSR ACTIVITIES IN 2011

Forthcoming activities

- Social Activity day (corporative voluntary work)Social Activity day (corporative voluntary work)

- Celebration of 20Celebration of 20thth anniversary of the Company anniversary of the Company

THANK YOU FOR ATTENTION

THANK YOU FOR PATIENCE