Franz Kosyna,

1
Vienna Insurance GroupFinancing of Investments
5th Vienna Economic Forum November 10th, 2008

• Franz Kosyna,
• Member of the Executive Board of Vienna
  Insurance Group

2
Vienna Insurance Group

• Vienna Insurance Group
• Operating in 23 countriesof Central and Eastern
  Europe
• Largest Insurance Group in Central- and Eastern
  Europe
• No other Insurance Group has
• a higher CEE-share of premiums
• Around 23,000 employees

VIG-definition CEE CZ, SK, PL, RO, BG, HR, HU

3
Think globally act locally
Since more than 180 years successful in Austria
More than 15 years of success in CEE

• Continuous expansion by organic growth and
  through acquisitions
• Local management
• Exchange of know-how within the Group
• Multi-brand policy
• Multi-channel distribution
• Vienna Insurance Group reinvests
• profits earned in a CEE country within that
  country

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Investments
5
VIG Investment Strategy
VIG follows a long-term and selective strategy
Long term engagements

• Stakes in insurance companies (national and
  international) to expand business
• Stakes in non-insurance companies to support
  insurance business development (e.g. private
  hospitals, laboratories, hotels)

Selective engagements

• Selective market entrance in CEE regions and
  expansion in already entered markets through
  acquisitions and organic growth

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CEE Region Offers Multiple Growth
Insurance Density (USD)
Versicherungsd
Insurance
BIP Wachstum
GDP Growth
urchdringung
Penetration
2007

2009F
2007

2009F
2007
1
2007
1
3,3
5,0
CEE
2
3,3
5,0
CEE
2
5,8
2,3
Ö
sterreich
5,8
2,3
Ö
sterreich
9,2
1,8
EU 15
9,2
1,8
EU 15
Spain
population 10mn
GDP per Capita (USD)
1 Premiums in of GDP. 2 Weighted average for
CEE. CEE is defined as Bulgaria, Croatia, Czech
Republic, Hungary, Poland, Romania, Serbia,
Slovakia and Ukraine.
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Stepwise expansion to the family of Vienna
Insurance Group

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Vienna Insurance Group
Vienna Insurance Group Number 1 in CEE Top
market positions in the countries
Poland 4. position
Czech Rep. 2. Position
Ukraine 2. position MTPL
Austria 1. position
Slovakia 2. position motor vehicle ins. 1.
position
Bulgaria 1. position
Romania 1. position
Georgia 1. position
Croatia 4. position2. position Life
Albania 2. position
Serbia 4. position1. position Life
Core markets
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Investment example
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Transaction Erste Bank
Acquisition of the Erste Group insurance
companies

• Enormous customer potential
• Expansion of market position in Central and
  Eastern Europe
• General Distribution Agreement between Erste
  Group and the Vienna Insurance Group

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Financing
Successful Capital Increase 2008 largest ever
share offering by an insurance Group on the
Vienna Stock Exchange.

• Placement of 23 million shares
• Volume of the capital increase approx. EUR
  1.14 billion

Issue of a hybrid bonds with an volume of EUR
250 million

• to strengthen equity capital
• to finance acquisitions in Central and Eastern
  Europe

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• Thank you for your attention!