ANADOLU HAYAT EMEKLİLİK A.Ş.
COMPANY PRESENTATION
May 2008
Index
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
2
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
3
Corporate Profile

First life insurance company in Turkey

Established in 1990 as a subsidiary of Türkiye İş Bankası

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)
4
Ownership Structure
Türkiye İş Bankası A.Ş.
62%
Anadolu Anonim Türk Sigorta Şirketi
20%
Fortis Bank A.Ş.
1%
Milli Reasürans A.Ş.
1%
Free Float
16%
5
TOTAL NUMBER OF COMPANIES AS OF 2007
Insurance Companies (Insurance)
50
- Non-Life
28
- Life
11
- Life & Pension
10
- Pension
1
Reinsurance Companies
Source: Treasury
6
1
TURKEY INSURANCE SECTOR
Premium Productions as of 2007
Total Premium Per Capita (USD)
133
Non-Life Premium Per Capita (USD)
117
Life Premium Per Capita (USD)
16
Total Premium Production (Billion USD)
9,4
Total Premium Production / GDP
1,28
Source: Treasury
7
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
 Ongoing comprehensive CRM project

Improve HR quality and thus productivity

Focus on Corporate Pension Business
8
Network
Bancassurance
962 branches
4 branches
Direct Sales
Agents & Brokers
237
303
Exclusive Agencies
42 Brokers
Call
9
13 branches
Licensed Salesperson
Internet
Other
284 branches
Centre
295 branches
80 branches
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
10
Lines of Business
Pensions


Individual
Corporate
Life Insurance



11
Endowment
Term Life
Annuities
Private Pension System in Turkey
Basic Features











Started on 27.10.2003
11 Licensed pension companies, as of 31.12.2007
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
12
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
13
Private Pension System in Turkey
TREASURY
PENSION MONITORING CENTRE
Reporting of
Pension Accounts
PARTICIPANT &
SPONSOR
PENSION
ACCOUNT
ADMINISTRATION
*
ASSET
MANAGEMENT **
FUND
ADMINISTRATION
***
Reporting of
Pension Accounts
MONEY AND
CAPITAL
MARKETS
Reporting of
Funds
CUSTODIAN BANK
CAPITAL MARKETS BOARD
14
* Anadolu Hayat Emeklilik
** İş Asset Management, HSBC Asset Management, TEB Asset Management
*** Isbank
Private Pension System in Turkey
Overview as of 31.05.2008
2.000.000
Fund Size
($ Mil)
4.000
1.500.000
3.000
1.000.000
2.000
500.000
1.000
-
0
2003
15
2004
2005
Funds ($ Mil)
2006
2007
2008/5
Number Of Participants
Number of
Participants
5.000
Private Pension System Outlook
As of
31.12.2003
2004 %
Change
As of
31.12.2004
2005 %
Change
As of
31.12.2005
2006
Change
As of
31.12.2006
2007
Change
As of
31.12.2007
2008
Change
As of
31.05.2008
Net Asset Value (USD Mio)
AHE
4
775%
35
271%
130
188%
374
110%
785
9%
857
Sum of
Sector
31
626%
225
306%
913
119%
1,996
98%
3,943
7%
4,231
Market
Share
12.9%
15.6%
14.2%
18.7%
20.0%
20.26%
Number of Participants
AHE
3,114
985%
33,798
190%
98,178
93%
188,285
58%
296,746
13%
336.489
Sum of
Sector
15,245
1961%
314,257
114%
672,696
60%
1,060,273
37%
1,453,869
9%
1.584.370
Market
Share
20.4%
16
10.8%
14.6%
17.8%
20.4%
21.24%
Private Pension System
Sectoral Expectations for 2013
Consolidated Expectations of Pension Companies for 2013
Total Number of Participants (Individual)
Total Number of Participants (Group)
Median
2,300,000
953,941
Total Number of Participants (Total)
3,250,000
Total Number of Contracts (Individual)
2,500,000
Total Number of Contracts (Group)
Total Number of Contracts (Total)
985,495
3,475,000
Total Amount to be Invested (USD million)
19,631
Total Amount of Participant's Funds (USD million)
24,202
Total Number of Participants to Opt Out
650,000
Total Number of Contracts to be Transferred
105,000
Total Number of Authorized Intermediaries
Source: Pension Monitoring Center
17
15,000
KEY DRIVERS FOR GROWTH IN
PENSION BUSINESS



18
Economic Improvements in Turkey
 Structural reforms
 Extended maturities
 Purchasing power
Advantages of Pension System
 Tax incentives
 Transparent system
 Participating to the investment process
New Regulations
 Vesting
 Right of transfers to the pension system
KEY DRIVERS FOR OUR MARKET
LEADERSHIP
19

Distribution network

Diversified products

Fund performance

Charging structure

Service quality
Private Pension System in Turkey
Overview as of 31.05.2008
Number Of
Participants
Market
Share
Funds
($ Mil)
Market
Share
AHE
336,489
21.2%
857
20.3%
XXX
308,660
19.5%
560
13.2%
XXX
241,435
15.2%
999
23.6%
XXX
230,931
14.6%
643
15.2%
XXX
151,624
9.6%
251
5.9%
Other 5
315,231
19.9%
920
21.8%
1,584,370
100.0%
4,230
100.0%
Total
20
Private Pension Funds & Mutual Funds
Fund Type
Average
Maturity
Net Asset
Value
(USD
Million)
Equity
(%)
Turkish
Treasury
Bonds
(%)
Reverse
Repo
(%)
Money
Market Inst.
(%)
Foreign
Currency
Sec.(%)
Other
(%)
PRIVATE PENSION FUNDS
31.12.2007
533
3,917
11.60
68.87
13.66
0.42
0.51
4.94
31.05.2008
467
4,217
9.35
67.81
15.91
0.14
0.52
6.27
31.12.2007
85
22,649
2.48
37.86
56.40
2.97
0.05
0.24
31.05.2008
54
21,169
1.67
35.82
58.33
3.29
0.05
0.84
MUTUAL FUNDS
21
Pension Products
Fund Menu
Conservative
Balanced

Cash Fund

Intnl. Mixed Fund

Conservative Fund

Eurobond $ Fund

Bond Fund

Eurobond € Fund

Balanced Fund
66%
22
23%
Aggressive

Equity Fund

Aggressive Fund
11%
29.12.2006-31.12.2007
Weighted Average Return
Net Asset Value (USD
million)
Weighted
Average Return
(%)
Anadolu Hayat Emeklilik
785
21.01
XXX
494
20.49
XXX
55
20.39
XXX
252
19.71
XXX
204
19.49
XXX
120
18.60
XXX
975
18.47
XXX
605
16.37
XXX
217
15.72
XXX
237
14.74
3,943
18.46
Private Pension Firm
TOTAL
23
Pension Production by Channel
2006
2007
2008 / 5
Direct to Customer +
Direct Sales
6%
2,1 %
2,5 %
Broker
0,4 %
1,0 %
0,6 %
Agency
15 %
4,4 %
5,9 %
Is Bank
5%
5,5 %
3,6 %
Is Bank + Direct Sales
34 %
37,8 %
43,8 %
Is Bank + Agency
15 %
18,3 %
18,5 %
HSBC
24 %
23,4 %
16,5 %
TEB + Agency
0,3 %
7,0 %
7,7 %
Anadolubank
1%
0,5%
0,9 %
100 %
100%
100%
BANCASSURANCE
Total
24
65,9 %
Pension Products
Charging Structure & Minimum Contribution
Explanation
Charging Method
Limit
Individual Pension
Plans (#3)
Minimum
At the phase of
entrance to the
System for each
pension account
ENTRANCE FEE
MANAGEMENT FEE
To cover
administrative
expenses
FUND
MANAGEMENT
FEE
MIN.
CONTRIBUTION
25
Can be deferred till
the leaving date or
can be collected by
installments
Minimum
Wage
On contributions
8%
To cover fund
management
expenses
On NAV of each fund
1/10,000
(daily)
3,72%
(annual)
Min. monthly
amount to be paid
regularly for at
least 10 yrs.
-
-
wage
Deferred till leaving
within 5 yrs. (Min.wage
in first 3 yrs, ½ of Min
wage between 3-5 yrs)
After 5 yrs completion
0
0% to 8% (depending
on the contribution
amount & payment
method)
2.34% (annual average)
60 YTL
Group Pension Plans
(#117)
0
to Minimum wage
Deferred till leaving
within 5 yrs. for some
plans
After 5 yrs completion
0 for all plans
%0 to %5
%1 to %2,59 (annual)
38 YTL
Life Insurance in Turkey
Market Shares (Premium Production)
PENSION COMPANY
2006
2007
2008 / 3
AHE
25 %
24 %
20 %
XXX
13 %
15 %
28 %
XXX
9%
11 %
8%
XXX
7%
8%
7%
XXX
8%
7%
7%
XXX
6%
6%
4%
Others
31 %
29%
26 %
TOTAL
100 %
100%
100%
26
Life Insurance in Turkey
Market Shares (Mathematical Reserves)
PENSION
COMPANY
AHE
XXX
XXX
XXX
XXX
XXX
Others
TOTAL
%
33,7
13,2
11,0
9,7
6,9
5,9
19,6
100
2006
( Mio $)
926
364
302
267
189
163
540
2.751
%
37,8
N/A
N/A
N/A
N/A
N/A
N/A
-
2007(*)
( Mio $)
1.276
N/A
N/A
N/A
N/A
N/A
N/A
3.376
(*) Mathematical reserve figures for each company are not available yet.The
consolidated figures as of 31.12.2007 has been announced by Treasury.
27
Life Products / Profit Sharing Rates
28
YEAR
PROFIT
SHARE(%)
USD(%)
CPI(%)
1998
98
53
70
1999
119
73
69
2000
43
24
39
2001
76
114
69
2002
62
14
30
2003
47
-15
18
2004
29
-4
9
2005
23
0
8
2006
16
5
10
2007
20
-17
8
AVERAGE
53
25
33
Life Portfolio
Total Number of Policies
2006
2007
2007 / 3
2008 / 3
Endowment
156.951
125.697
148.280
118.210
Annuity
40.001
39.394
39.014
39.210
Term Life
508.550
711.556
611.061
666.053
Total
705.502
876.647
798.355
823.473
29
Life Portfolio
Total Premium Production(US$)
2006
2007
Endowment 141.076.963 153.562.421
2007 / 3
2008 / 3
32.381.398
30.874.958
Term Life
28.232.529
41.863.416
6.810.588
7.283.516
Annuity
71.795.350
95.543.912
19.588.672
28.597.777
241.104.842 290.969.749
58.780.658
66.756.252
Total
30
Life Portfolio
Premium Production - New Business (US$)
2006
2007
2008 / 4
Endowment
5.414.278
4.567.671
277.862
Term Life
24.130.090
40.326.182
8.233.553
Annuity
57.602.723
79.583.312
7.681.598
Total
87.147.091
124.477.165
16.193.013
31
Life Production by Channel
2006
2007
2008 / 4
Agency & Broker
44 %
36%
39%
Direct to Customer & Direct Sales
23 %
24%
28%
28 %
33%
17%
BANCASSURANCE
Isbank
Isbank & Direct Sales
5%
7%
HSBC
15%
1%
Total
100 %
32
100%
100%
32%
Life Products
Charging Structure
Explanation
Charging
Method
Limit
For
AGENCY
COMMISSION
-
On
premiums
Group Life
Products
TRL - $/€
1.Year 30%-20%
2. Year 5%-2%
3. Year+ 3%-2%
Varies
according to the
group
None
TRL - $/€
1.Year 5%-3%
2. Year 4%-3%
3. Year+ 3%-3%
Varies
according to the
group
On current
year’s
revenues
Max. 10% of the revenues
5%
5%
On
premiums
No minimum or maximum limits
-
-
MANAGEMENT
FEE
To cover
administrative
expenses
On
premiums
FUND CHARGE
To cover fund
management
expenses
RISK PREMIUM
Depends on
the age and
sex of the
insured
33
term life products total of
commission rates cannot
exceed 25%.
For other products total of
commission rates cannot
exceed 80%.
Individual Life
Products
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
34
Financial Highlights
($ Mil)
Written Premium
2006
2007
241
291
-3
7
1.613
2.437
Paid-In Capital
125
151
Shareholders’ Equity
229
297
Math.& Profit Sharing Provisions
939
1.253
18
39
General Technical Profit
Total Assets
Net Profit
35
Financial Highlights
($ Mil)
2007/3
2008/3
Written Premium
59
70
General Technical Profit
-1
0,2
1.711
2.205
Paid-In Capital
127
134
Shareholders’ Equity
234
223
Math.& Profit Sharing Provisions
958
1.138
4
7
Total Assets
Net Profit
36
Financials
Income Statement
($ Mil)
2006
2007
0,14
0,13
-0,20
-0,06
-0,23
-0,10
391,3
-378,7
480,4
-457,7
12,6
12,6
22,7
33,0
-27,8
-15,2
-48,8
-15,8
IV- GENERAL TECHNICAL PROFIT / LOSS
-2,7
6,8
GHI-
36,6
-8,3
-3,7
50,1
-4,7
-3,0
V- COMPANY ASSETS PROFIT / LOSS
VI- PERIOD PROFIT / LOSS (IV+V)
24,6
22,0
42,4
49,2
VII- PROVISION FOR TAX & OTHER LEGAL LIABILITIES
-4,0
-10,0
IX- PERIOD NET PROFIT / LOSS (VII - VIII)
18,0
39,2
TECHNICAL PART
A- NON-LIFE TECHNICAL INCOME
BI-
NON-LIFE TECHNICAL EXPENSES
NON-LIFE TECHNICAL PROFIT / LOSS
CD-
LIFE TECHNICAL INCOME
LIFE TECHNICAL EXPENSES
IIE-
LIFE TECHNICAL PROFIT / LOSS
PENSION FUND TECHNICAL INCOME
FIII-
PENSION FUND TECHNICAL EXPENSES
PENSION FUND TECHNICAL PROFIT / LOSS
INVESTMENT INCOME
INVESTMENT EXPENSES
PROFIT FROM OTHER & EXTRAORDINARY
37
Financials
Income Statement
($ Mil)
TECHNICAL PART
A- NON-LIFE TECHNICAL INCOME
2007/3
2008/3
0,03
-0,13
BI-
NON-LIFE TECHNICAL EXPENSES
NON-LIFE TECHNICAL PROFIT / LOSS
-0,03
0,00
-0,19
-0,32
CD-
LIFE TECHNICAL INCOME
LIFE TECHNICAL EXPENSES
97,1
-95,4
128,0
-127,4
IIE-
LIFE TECHNICAL PROFIT / LOSS
PENSION FUND TECHNICAL INCOME
1,7
5,5
0,5
10,7
-8,1
-2,7
-1,0
-10,8
-0,1
0,2
9,3
9,2
-1,1
-1,7
-0,9
-0,3
6,5
5,5
8,0
8,2
-1,6
4
-1,5
7
F- PENSION FUND TECHNICAL EXPENSES
III- PENSION FUND TECHNICAL PROFIT / LOSS
IV- GENERAL TECHNICAL PROFIT / LOSS
G-
INVESTMENT INCOME
HI-
INVESTMENT EXPENSES
PROFIT FROM OTHER & EXTRAORDINARY
V- COMPANY ASSETS PROFIT / LOSS
VI- PERIOD PROFIT / LOSS (IV+V)
VII- PROVISION FOR TAX & OTHER LEGAL LIABILITIES
IX- PERIOD NET PROFIT / LOSS (VII - VIII)
38
Financials
Balance Sheet
($ Mil)
ASSETS
I.
LIQUID ASSETS
II.
MARKETABLE SECURITIES
III.
2006
2007
25,2
53,5
1.110,4
1.480,5
RECEIVABLES
393,5
806,0
IV. INVESTMENTS
V. FIXED ASSETS
66,5
17,1
70,9
21,1
0,8
5,0
1.613,5
2.437,0
401,0
975,0
825,5
1.299,4
5,3
6,4
3,2
8,7
229,0
297,0
18,0
1.613,5
39,2
2.437,0
VI. OTHER ASSETS (NET)
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
I.
II.
PAYABLES
TECHNICAL PROVISIONS
III.
OTHER PROVISIONS
IV. TAX PROVISIONS
V.
SHAREHOLDERS' EQUITY
VI. PROFIT
TOTAL LIAB.& SH.EQUITY
39
Financials
Balance Sheet
($ Mil)
2007/3
2008/3
ASSETS
I.
LIQUID ASSETS
II.
MARKETABLE SECURITIES
III. RECEIVABLES
IV. INVESTMENTS
V.
FIXED ASSETS
VI. OTHER ASSETS (NET)
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
44
51
1.114
1.372
462
2
755
5
73
3
17
19
1.711
2.205
I.
PAYABLES
473
794
II.
TECHNICAL PROVISIONS
994
1.181
III.
OTHER PROVISIONS
7
3
4
234
4
223
4
7
1.711
2.205
IV. TAX PROVISIONS
V. SHAREHOLDERS' EQUITY
VI. PROFIT
TOTAL LIAB.& SH.EQUITY
40
Corporate Profile
Lines of Business - Life & Pensions
Financials
Stock Data
41
ANADOLU HAYAT EMEKLİLİK
Stock Data
Year
Year-end
Price ($)
2003
0,90
157.500.000
2004
1,59
278.250.000
2005
2,91
509.250.000
2006
3,33
582.750.000
2007
4,11
719.250.000
2008/5
3,38
591.500.000
42
MCAP($)
THANK YOU…
43