Tune Ins Holdings BerhadQ2FY15 Financial Results

Analyst Presentation

August 2015

A G E N D A

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01Page 3 - 7

EXECUTIVE SUMMARY

• Key Highlights • 1HFY15 – Financial

Highlights • 2QFY15 – Financial

Highlights • Key Strategies • Outlook

2Q2015 & 1H2015Financial

Performance• Group• Global Travel• General Insurance

(TIMB)• Overseas Ventures

02Page 9 - 12

APPENDICES• Other Financial

Indicators

03Page 14 - 18

Key Highlights

Positive momentum across core business pillars with stronger positioning underway

Credit Rating

Rebranding & Reposition

Indonesia Acquisition

Global Travel

General Insurance

• Rating reaffirmed by RAM reflects TIH’s favorable operating performance backed by stablecaptive travel business & satisfactory financial metrics of GI businesses

• New rating accredited to TGR by A.M. Best in assisting to negotiate deals & underwriting termsparticularly in MENA region

• Announcement of proposed name change to Tune Protect Group Berhad with rebrandingexercise underway to better reflect the Group’s dynamic & holistic business activities & build astronger brand proposition; convenient, easy, affordable, online

• On-going discussion & awaiting the regulatory approvals

• Continued to diversify sales of Travel portfolio contribution from non-AirAsia partnersrepresenting 9% of total GWP in H1FY15 Vs 2% in H1FY14

• GWP growth of 24% in H1FY15 Vs H1FY14 driven by new markets, new channels (B2B portal,reseller, B2C), & new products (inbound travel, warrant, Visit Friend & Relative Embed (VFRE) &Family Plan Insurance)

Malaysia (TIMB)• Achieved underwriting margin of approximately 9% in Q2FY15 driven by growth in NEP with

improvement in claim & commission• New tie up (PA for National Football Development Programme), new franchises (Ford, Proton,

Jaguar) & new branch set up – Alor Star

Thailand (TIPCL)• Launched innovative product (Thai Rice Insurance) & started to roll out of proactive marketing

initiative (travel PA for AIS (international roaming))

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First Half 2015 – Financial Highlights

Excluding one-off gain in Q1FY14

1H 2014 1H 2015 1H 2014 1H 2015

124.7137.1

Operating Revenue registered 5.1% growth underpinned by growth in GEP in motor & medical businesses with higher investmentincome

NEP growth gaining momentum mainly driven by double-digit growth in TIMB despite softening economic environment in Malaysia

On a normalised basis, YTD PAT growth of 12.0% underpinned by improvement in TIMB businesses coupled with recovery in traveldemand especially in Malaysia & Thailand

Overseas ventures profit contribution of 3.8% driven by continued growth from MENA whilst Thai associate performance reflectsinvestment for growth

Debt-free balance sheet position coupled with healthy growth in total assets

Strong top line growth coupled with strong balance sheet position

1.091.25

FY2014 1H 2015

30.734.4

4.3

1H 2014 1H 2015

215.5226.5

OPERATING REVENUE(RM mil)

NET EARNED PREMIUM(RM mil)

PROFIT AFTER TAX(RM mil)

TOTAL ASSETS(RM bil)

4

14.6

17.2

Q2FY14 Q2FY15

Second Quarter 2015 – Financial Highlights

101.5

115.3

Q2FY14 Q2FY15

60.5

71.1

Q2FY14 Q2FY15

OPERATING REVENUE(RM mil)

NET EARNED PREMIUM(RM mil)

PROFIT AFTER TAX(RM mil)

Combined Ratio(%)

Q2FY14 Q2FY15

Operating revenue growth of 13.5% driven by strong growth in GEP mainly in motor, medical & travel class of businesses

NEP growth by 17.5% attributed to good traction in travel in the main markets coupled with higher retention in motor business

Decent profit growth of 17.7% underpinned by robust profit growth recorded for TIMB with good growth in targeted segmentscoupled with improvement in claims & commissions

Marginal decrease in combined ratio underpinned by improvement in claim and commission in selected segments

Double digit growth in 2Q across our core businesses

5

83.8% 83.7%

Five Key Strategies

STRATEGIES PERFORMANCE TO DATE ACTIVITIES

Continue to grow with AirAsia

• YTD sales growth of 14% yoy

• Launched Inbound Travel for Sri Lanka, Nepal, Korea & Taiwan • Launched travel insurance (warrants) for civil servants • Product enhancement and re-pricing for current routes• Increase penetration for offline channel via more active workshops given to travel agents

Global Player inTravel Insurance

• Non-AirAsia partners make up 9% of Global Travel GWP

• Cebu Air : YTD sales growth of 33% yoy

• AirArabia/Cozmo:YTD sales growth more than double yoy

Cebu Pacific : • Launched long haul markets - Qatar, Kuwait, Dubai • Activated offline via General Sales Agent (GSA) for Indonesia, UAE, Qatar & Kuwait • Product enhancement for current routes

AirArabia / Cozmo :• Launched Visit Friend & Relative Embed (VFRE) & Family Plan Insurance • Launched baggage wrap insurance in June at AirArabia airport• Launched new markets : Pakistan, Armenia, Iraq & Lebanon• Activated offline via (1) B2B portal in 5 markets in June, (2) Reseller in Qatar & Kuwait in

July, (3) B2C – Asia Medical Assistance (AMA) in 5 key markets

Strengthendigital businessfundamentals

• On track to launch new digital platform

• New web/mobile site to launch in early September, mobile app by end September

• Malaysia: YTD retention ratio increased by 1% yoyby actively monitoring our portfolio

Malaysia :• Launched PA Insurance for National Football Development Programme• Tied up with franchises- Jaguar, Proton & Ford • Launched new branch – Alor Setar in April 2015

Thailand : • New marketing initiative – tied up with AIS – provide International Roaming Insurance• Expanding mass reach and channels – Booterm Kiosk• New product – Thai Rice Insurance scheme

Strategic Acquisition

• Indonesia – ongoing discussion with regulators

• Timeline extended due to delays with regulator approvals

1

2

3

4

5

Enhance distribution channels & optimize retention

Progressively delivering on our strategies

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Outlook

Global Travel

General Insurance

Digital Transformation

Branding

New Partnerships & Products

• Global Travel - Top line to maintain double-digit growth amid weakening ringgit and softeningregional/domestic economic environment

• Participate in the submission of RFP (Request for Proposal) to airlines/non-airlines partners toexpand our travel portfolio

• Continue to expand our distribution channels (B2B) to increase penetration for offline channels• Launch inbound travel & lifestyle products for Thailand & Indonesia

• Malaysia - top line to outpace industry growth despite economic landscape

• Thailand – Investment for growth via more partnerships in Telco & bank businesses

• Launch new website for Malaysia; expand to Thailand and Middle East next

• New brand to be unveiled soon – Increase consumer awareness & building brand equity

• Explore partnerships with leading e-commerce players• Expand baggage protection insurance to Malaysia by targeting travellers at check in counter• Launch insurance for AirAsia premium flex & business class

We remain positive on continued growth for 2nd Half of 2015

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A G E N D A

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01Page 3 - 7

EXECUTIVE SUMMARY

• Key highlights • 1HFY15 – financial

highlights • 2QFY15 – financial

highlights • Key Strategies • Outlook

2Q2015 & 1H2015Financial

Performance• Group• Global Travel• General Insurance

(TIMB)• Overseas Ventures

02Page 9 - 12

APPENDICES• Other Financial

Indicators

03Page 14 - 18

TIH Group – Snapshot for 2Q2015 & 1H2015 Results

TIH (Consolidated) Q2 2015 Q2 2014 Q2 vs Q2 (%) 1H 2015 1H 2014 1H vs 1H (%)(in RM’000) A B A vs. B C D C vs. D

Income Statement

Operating Revenue 115,254 101,510 +13.5% 226,500 215,462 +5.1%

Gross Written Premiums 134,895 99,843 +35.1% 248,519 224,551 +10.7%

Net Earned Premiums 71,091 60,518 +17.5% 137,074 124,705 +9.9%

Investment and Other Income 6,448 5,818 +10.8% 13,761 16,212 -15.1%

Investment and Other Income(excluding sales of building)

6,448 5,818 +10.8% 13,761 11,915 +15.5%

Net fees & commission (11,017) (9,648) +14.2% (23,163) (19,712) +17.5%

Net Claims (26,337) (24,461) +7.7% (52,557) (50,779) +3.5%

Management and other Expenses (22,160) (16,822) +31.7% (40,680) (32,877) +23.7%

Share of results of JV 106 (30) >100% 234 (30) >100%

Share of results of associates 305 339 -10.0% 1,073 339 >100%

PAT 17,226 14,631 +17.7% 34,429 35,027 -1.7%

PAT (excluding one off) 17,226 14,631 +17.7% 34,429 30,730 +12.0%

Key Ratios

ROE (annualised) 15.2% 14.6% +4.1% 15.2% 17.5% -13.1%

ROA (annualised) 5.5% 5.6% -1.8% 5.5% 6.7% -17.9%

EPS (sen) 2.15 1.91 +12.6% 4.34 4.47 -2.9%

Net commission ratio (%) 15.5% 15.9% -2.5% 16.9% 15.8% +7.0%

Net claim incurred ratio (%) 37.0% 40.4% -8.4% 38.3% 40.7% -5.9%

Management expenses ratio (%) 31.2% 27.5% 13.5% 29.7% 26.2% +13.4%

Combined ratio (%) 83.7% 83.8% -0.1% 84.9% 82.7% +2.7%

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Global Travel

2Q2015

32.6 m 31.9%

1H2015

64.7 m 24.0%

2Q2015

30.2 m 15.8%

1H2015

59.8 m 13.1%

2Q2015

14.1 m 1.4%

1H2015

29.3 m 1.7%

GROSS WRITTEN PREMIUM

NET EARNED PREMIUM

PROFIT AFTER TAX

TOTAL POLICIES ISSUED (ASIA only)

(Policies Count includes AirAsia, Cebu Pacific, Air Arabia & Cozmo)

Gross Written Premium• Q2FY15 & H1FY15: Good pipeline with strong double digit growth in GWP driven by

continuous growth in Malaysia, Thailand & Middle East markets

Net Earned Premium• Q2FY15 & H1FY15: Decent growth in NEP driven by continuous growth in top line

partially mitigated by UPR strain to be released when customers commence theirjourney

Profit After Tax• Q2FY15 & H1FY15: Growth in PAT underpinned by higher NEP & unrealised forex

gain offset by higher commission & management expenses to support businessexpansion

Total Policies Issued• Total policies issued of 4.09 mil (Asia only) mainly driven by Malaysia despite softer

economic environment & strong recovery in Thailand travel

2Q2015

2.05 m 7.9%

1H2015

4.09 m 2.5%

Strong top line growth driven by steady travel demand in Malaysia, Thailand & MENA

10

ASIA1H2015

Thailand20% (18%)

Indonesia8% (13%)

Others17% (19%)

Malaysia55% (50%)

1H2015 Composition 1H2014 Composition

yoy yoy

yoy yoy

yoy yoy

yoy yoy

GWP1H2015

Motor26% (25%)

PA & Medical32% (30%)

Marine13% (15%)

Fire16% (17%)

GWP2Q2015

Motor24% (30%)

PA & Medical33% (28%)

Marine12% (18%)Fire

21% (13%)

Misc12% (11%)

Misc13% (13%)

Malaysia (TIMB)

GROSS WRITTEN PREMIUM

NET EARNED PREMIUM

PROFIT AFTER TAX

2Q2015

119.2 m 36%

1H2015

217.3 m 10%

2Q2015

40.9 m 19%

1H2015

77.3 m 8%

2Q2015

6.7 m >100%

1H2015

10.5 m 15%

Gross Written Premium• Q2FY15: Strong double-digit growth driven by motor, medical & travel businesses• H1FY15: 10% growth in spite of lower GWP reported in Q1FY15 Vs same period last

year

Net Earned Premium• Q2FY15: 19% growth attributed to strong growth in GWP coupled with higher

retention of motor business• H1FY15: 8% growth attributed to strong growth in Q2FY15 partially impacted by

higher UPR strain in line with the business expansion

Profit After Tax• Q2FY15: Robust jump in PAT driven by stable growth across all underlying businesses• H1FY15: Underlying margin of 3% driven by continuous growth in NEP coupled with

improvement in claim & commission paid

Portfolio Mix• Q2FY15 & H1FY15: Optimising retention through actively monitoring our portfolio

mix

PROFIT AFTER TAX (excluding one-off)*

*Excluding one-off gain in 1Q2014

2Q2015

6.7 m >100%

1H2015

10.5 m >100%

Strong financial results supported by growth in main class of businesses

111H2015 Composition 1H2014 Composition2Q2015 Composition 2Q2014 Composition

yoy yoy

yoy yoy

yoy yoy

yoy yoy

UAE53% (65%)

2Q2015

56.4 k

Overseas Ventures

TOTAL POLICIES ISSUED

PROFIT AFTER TAX

Middle East

Thailand

GROSS WRITTEN PREMIUM

PROFIT AFTER TAX

Gross Written Premium• Q2FY15 & H1FY15: Good GWP driven by continuous growth in motor & travel businesses

Profit After Tax• Q2FY15 & H1FY15: PAT reflects investment for growth with higher marketing expenses from

launch of innovative product (Thai Rice Insurance) & proactive marketing initiatives such asPA for AIS (international roaming), Tune Motion & Boonterm Kiosk

1H2015

106.4 k

2Q2015

0.2 m

1H2015

0.5 m

2Q2015

14.6 m

1H2015

23.6 m

2Q2015

0.6 m

1H2015

2.2 m

Overseas Ventures contribution reflects investment for growth

Total Policies issued• Q2FY15 & H1FY15: Increased in total policies

issued driven by continuous footprint expansion inMENA region

Profit After Tax• Q2FY15 & H1FY15: PAT driven by growth in top line

partially mitigated by higher ME in line withbusiness expansion

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MENA

1H2015 Composition

1H2014 Composition

India15% (14%)

Morocco9% (9%)

Others23% (12%)

A G E N D A

13

01Page 3 - 7

EXECUTIVE SUMMARY

• Key highlights • 1HFY15 – financial

highlights • 2QFY15 – financial

highlights • Key Strategies • Outlook

2Q2015 & 1H2015Financial

Performance• Group• Global Travel• General Insurance

(TIMB)• Overseas Ventures

02Page 9 - 12

APPENDICES• Other Financial

Indicators

03Page 14 - 18

224.6 248.5

99.8

134.9

9.8 11.3

5.7 5.8

215.5 226.5

101.5 115.3

1H2014 1H2015 Q2FY14 Q2FY15

1H2014 1H2015 Q2FY14 Q2FY15

42.4% 43.6% 43.2% 42.5%

57.6% 56.4% 56.8% 57.5%

1H2014 1H2015 Q2FY14 Q2FY151 Net earned premium = gross earned premium received - premiums ceded to external reinsurers

137.1124.7 71.160.5

Online

TIMB

TIH Group : Operating Revenue

1H2014 1H2015 Q2FY14 Q2FY15

OPERATING REVENUE (RM’ mil) GROSS WRITTEN PREMIUM (RM’ mil)

NET EARNED PREMIUMS1 (RM’ mil) INVESTMENT INCOME (RM’ mil)

H1FY15: Top line growth supported by strengthened underlying businesses

14

29.7% 26.2% 31.2% 27.5% 28.1%

38.3% 40.7%37.0% 40.4% 39.7%

16.9% 15.8% 15.5% 15.9% 18.4%

1 Management Expense divided by Net Earned Premiums 2 Sum of Net Claims, Management Expenses & Net Fees and Commissions divided by Net Earned Premiums

ME1

(%)

Combine ratio2

(%)

Net claim(%)

Commission(%)

84.9% 82.7% 83.7% 83.8% 86.2%

1H2015 1H2014 Q2FY15 Q2FY14 Q1FY15

TIH Group: Combined ratio

H1FY15 Vs H1FY14 - Higher combined ratio attributed to• Increase in ME due to ESOS provisions and higher licensing fees• Higher commission payout for middle east market in line with the continuous growth in travel business

Q2FY15 Vs Q2FY14 – lower combined ratio underpinned by• Improvement in claim management with lower claim amount reported in selected segments in TIMB• Mitigated by higher ME resulted by ESOS provisions and higher licensing fees

Q2FY15 Vs Q1FY15 – lower combined ratio driven by• Improvement in claim & commission in TIMB

15

Lower QoQ driven by claim improvement; higher YoY in line with business growth

34.4

30.7

17.214.6

17.2

4.3*

H1FY15 Vs H1FY14 - Higher underlying PAT attributed to• Continuous growth in travel, improvement in overall TIMB businesses together with higher contribution from oversea ventures

Q2FY15 Vs Q2FY14 – Higher PAT underpinned by• better PAT reported in TIMB business & continuous growth in travel partially offset by higher ME due to higher licensing fees

Q2FY15 Vs Q1FY15 – Flat PAT attributed to• better performance in TIMB businesses offset by higher management expenses

RM’mil

PAT PATQ2FY15(RM’mil)

Q2FY14(RM’mil)

1H2015(RM’mil)

1H2014(RM’mil)

Online* 14.1 13.7 29.3 28.5

TIMB 6.7 2.0 10.4 9.1

Share of associate (Thailand)

0.3 0.3 1.1 0.3

Share of JV 0.1 -0.01 0.2 -0.01

1H 2015 1H 2014 Q2FY15 Q2FY14 Q1FY15

* Comprises of TGR & other subsidiaries

TIH Group: Profit After Tax

H1FY15: Higher underlying PAT attributed to strong Q2FY15 results

16

* One off gain in sales of building in Q1FY14

1.1%* 1.0%*

1.9%* 2.0%*

Q2FY14 Q2FY15 1H2014 1H2015

Wholesale funds, 2.1%

Deposits with FI, 72.2%(mainly via wholesale funds)

TIH Group : Investment Portfolio & Income

Unit and property trust funds, 2.5%

PORTFOLIO MIX

Debt securities, 20.2%

Equity securities 3.0%

Loans, 0.1%

Higher investment income attributed to low risk investment strategy

5.7 5.8

9.8 11.3

Q2FY14 Q2FY15 1H2014 1H2015

INVESTMENT INCOME (RM’ mil)

* Investment yield for 3 months & 6 months# Investment income (include rental income) /(total investment+ total investment

property)

INVESTMENT YIELD#

TIH Group565.1 mil

17

U.A.E52% (68%)

India16% (13%)

Morocco9% (9%)

Egypt6% (1%)

Europe5% (5%)

Others13% (5%)

Malaysia 55% (50%)

Thailand 20% (18%)

Indonesia 8% (13%)

Singapore 4% (5%)

China5% (7%)

Others8% (7%)

Malaysia 54% (53%)

Thailand 19% (16%)

Indonesia 9% (13%)

Singapore 4% (4%)

China6% (7%)

Others8% (7%)

U.A.E54% (68%)

India15% (13%)

Morocco 9% (9%)

Egypt5% (1%)

Europe4% (5%)

Others13% (5%)

Malaysia54% (51%)

Thailand20% (17%)

Indonesia9% (13%)

Singapore4% (5%)

China5% (7%)

Others8% (7%)

U.A.E51% (66%)

India15% (14%)

Morocco 9% (9%)

Egypt6% (2%)

Europe5% (5%)

Others14% (5%) U.A.E

53% (65%)

India15% (14%)

Morocco 9% (9%)

Egypt5% (2%)

Europe5% (5%)

Others13% (5%)

Malaysia54% (48%)

Thailand20% (19%)

Indonesia 9% (13%)

Singapore 4% (5%)

China6% (8%)

Others7% (7%)

Travel Business (Asia & Middle East)

56.4 k in Q2 2015(vs 24.1 k in Q2 2014)

106.4 k in 1H 2015(vs 24.1 k in 1H 2014)

1.94 million in Q2 2015(vs. 2.06 million in Q2 2014)

ASIA*

MENA & EU^

3.87 million in 1H 2015(vs. 4.23 million 1H 2014)

49.7 k in Q2 2015(vs. 15.1 k Q2 2014)

96.4 k in 1H 2015(vs. 15.1 k 1H 2014)

2.05 million in Q2 2015(vs. 1.90 million in Q2 2014)

4.09 million in 1H 2015(vs. 3.99 million in 1H 2014)

ASIA*

^ sold via AirArabia & Cozmo* sold via AirAsia & Cebu Pacific

2014 2015

MENA & EU^

POLICIES ISSUEDPOLICIES EARNED

Q2 1H Q2 1H

Q2 1H Q2 1H

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This presentation has been prepared by Tune Ins Holdings Bhd (“Company”) in connection with the InterimFinancial Statements (unaudited) for the financial period ended 30 June 2015 and announced by theCompany on the Main Market of Bursa Malaysia Securities Berhad on 18 August 2015.

Information contained in this presentation is intended solely for your reference. Such information is subjectto change without notice, its accuracy is not guaranteed and it may not contain all material informationconcerning the Company. Neither we nor our advisors make any representation regarding, and assumes noresponsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any informationcontained herein.

In addition, the information may contain projections and forward-looking statements that reflect theCompany’s current views with respect to future events and financial performance. These views are based oncurrent assumptions which are subject to various risks factors and which may change over time. Noassurance can be given that future events will occur, that projections will be achieved, or that the Company’sassumptions are correct. Actual results may differ materially from those projected.

Disclaimer

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