#1ZZZALY ALLIANZ MALAYSIA BERHAD (12428-W) 46TH ANNUAL GENERAL MEETING TUESDAY, 30 JUNE 2020 Allianz (#2POLL ADMINISTRATOR AND SCRUTINEERS Allianz ⑪ tricor Poll Administrator Tricor Investor & Issuing House Services Sdn Bhd Mega Corporate ☑ Independent Scrutineer Mega Corporate Services Sdn Bhd O Copyright Allianz SE 30-Jun-20 2#3ITEM 1 OF THE AGENDA Allianz ⑪ FOR INFORMATION To receive the Audited Financial Statements for the financial year ended 31 December 2019 and the Directors' and Auditors' Reports thereon O Copyright Allianz SE 30-Jun-20 13#4GROUP PERFORMANCE 01 O Copyright Allianz SE 30-Jun-20 Allianz ⑪ 4#5MALAYSIA INSURANCE MARKET IS UNDER PENETRATED BUT GROWTH REMAINS SUBDUED AND CHALLENGING Malaysian Conventional Insurance Industry 21 38,918 General insurers General agents 14 Life insurers 75,707¹ Life agents 1.3% Insurance penetration (% of GDP) 3.1% 2 Insurance penetration (% of GDP) 3 + Life insurance & Family Takaful coverage of 41.0% (2017: 36.5%) Data source:- 1 No of Agents from LIAM Annual Report 2018 -0.8% GWP GROWTH 2019 (2018 +1.5%) +14.8% ANP GROWTH 2019 (2018 +1.0%) 2 General - defined as Gross Written Premium/Gross Domestic Product, Life defined as total inforce policies premium/Gross Domestic Product 3 Percentage of Malaysians who own at least one individual life insurance or family takaful policy in 2018 (Source: Bank Negara Malaysia) O Copyright Allianz SE Allianz 4.3% GDP GROWTH 2019 (2018 +4.7%) -2.0% - +0.5% PROJECTED GDP GROWTH 2020 5#6DELIVERED A STRONG PERFORMANCE WITH A RECORD SET OF FINANCIAL RESULTS FY 2019 Allianz RM 5.5 bil + 6.8% (2018 + 7.9%) Operating revenue RM 4.9 bil + 9.3% (2018 + 5.1%) Gross Written Premium RM 692.1 mil +33.4% (2018 + 18.7%) Profit before tax ALIM RM340.7 mil +66.7% AGIC RM362.4 mil +13.0% AMB RM(11.0) mil +83.3% RM 2.04 + 21.4% (2018 + 11.1%) Basic earnings per ordinary share RM 0.65 + 62.5% (2018 +233.3%) Dividend Per Ordinary Share RM 19.7 bil + 13.2% (2018 + 4.9%) Total assets O Copyright Allianz SE 6#7DIVERSIFICATION IN TWO STRONG PILLARS OF BUSINESSES: Allianz MAINTAIN MARKET LEADERSHIP IN GENERAL INSURANCE & DELIVER STRONG GROWTH IN LIFE INSURANCE Gross Written Premium (GWP) (RM' mil) 5-yr CAGR +4.4% +9.3% ד 4,923 4,505 4,133 4,183 4,285 Allianz Life 3,968 +14.3% y-o-y growth 2725 1834 1,952 2,100 2,150 2,384 2134 2,181 2,083 2,136 2,121 2198 2014 O Copyright Allianz SE 2015 2016 General insurance 2017 2018 ■Life insurance 2019 Allianz Life maintained top 5 position in ANP, with 8.5% market share¹ (2018 8.4%) Allianz General +3.6% y-o-y growth Allianz General maintained its market leader position with 12.3% market share² (2018 11.8%) 1 Source: LIAM industry statistics Jan-Dec 2019 2 Source: ISM Market Performance Report Jan-Dec 2019 7#8Allianz DELIVERED A PROFITABLE GROWTH FROM DIVERSIFIED BUSINESS PORTFOLIO Managing the impact and challenges from de-tariffication and liberalisation Profit before Tax (RM' mil) 5-yr CAGR +10.3% +33.4% 692 519 423 438 455 341 437 Allianz Life 204 106 117 138 173 351 317 321 317 315 264 2014 2015 2016 2017 ■General insurance & investment holding AMB 2018 2019 ■Life insurance 66.7% y-o-y growth (26.3% CAGR) Allianz General 11.7% y-o-y growth (2.1% CAGR) Maintain strong discipline in pricing & prudent expense management Deliver healthy and sustainable margins. Achieved NBV of RM259 mn (+29.6%) Push for profitable mix & claims management to deliver in de-tariff environment. Achieved Net Combined Ratio of 91.0%. O Copyright Allianz SE 8#9Allianz RECORD PBT DRIVEN BY A STRONG GROWTH IN CORE PROFIT AND FAIR VALUE IMPACT Profit before Tax (RM' mil) +40.7 +64.2 -5.0 +58.4 11.7 46.7 692.1 519.0 +14.8 PBT 12M 2018 Profit Growth General Business Profit Growth Life Business Profit Growth Investment recurring Holdings One-off, non- Fair Value/ Ταχ Impact PBT 12M 2019 Tax Impact ■Fair Value O Copyright Allianz SE Core profit excluding fair value gain and non- recurring adjustments (RM' mil) 519.0 +14.2% 593.0 268.6 Allianz Life 204.4 31.4% y-o-y growth 314.6 324.4 2018 2019 Allianz General 2.9% y-o-y growth 9#10DELIVERING OUR PROMISE TO SHAREHOLDERS TO STRENGTHEN DIVIDEND RETURNS Achieved a record high dividend payout ratio of 50.2% and dividend yield 1 of 4.4% Dividend Per Share (RM sen) Ordinary Share 5-yr CAGR Preference Share +67% +63% Allianz ⑪ 2017 2018 2019 Dividend Yield 0.9% 3.1% 4.4% Payout Ratio 15.9% 40.3% 50.2% Dividend policy of minimum payment ratio of 30% is subject to: 78.00 Meeting regulatory capital requirements increase to correspond with growth of insurance business +233% 65.00 132.1 115.0 48.00 40.00 81.4 70.7 Setting aside sufficient capital to finance new business growth and expansion 5.00 6.00 8.4 10.7 6.50 7.80 11.0 13.8 9.00 10.80 12.00 14.40 24.6 15.6 18.6 21.0 2014 2015 2016 2017 2018 2019 *All figures shown within the column bar above are dividend amount in RM'mil. Obtaining regulatory approval for dividend from subsidiaries O Copyright Allianz SE 1 Dividend yield = total dividend payout divided by market capitalisation 10 10#11GENERAL BUSINESS 02 O Copyright Allianz SE 30-Jun-20 Allianz ⑪ 11#12ALLIANZ GENERAL: MAINTAINING MARKET LEADERSHIP Allianz ⑪ KPIs GWP growth Commission ratio ALLIANZ GENERAL ALLIANZ GENERAL Industry¹ 12M 2019 Takaful² 12M 2019 12M 2019 12M 2018 3.6% -0.7% -0.8% 18.8% 11.7% 12.3% 10.0% 9.4% Claims ratio ■ Overall 59.1% 62.1% 58.1% 58.1% Motor 63.6% 67.3% 70.1% 72.7% Expense ratio 20.2% 18.4% 24.7% 31.0% Combined ratio 91.0% 92.8% 92.8% 98.5% Market Share¹ 12.3% Market Rank³ 1 O Copyright Allianz SE Notes: 1) Source: ISM Market Performance Report Jan-Dec 2019 2) Source: ISM Takaful Market Performance Report Jan-Dec 2019 3) Based on AGIC Revenue by account & ISM Market Performance Report Jan-Dec 2019 12#13OUTPERFORM INDUSTRY AMIDST SUBDUED GROWTH ENVIRONMENT Gross Written Premium (RM' mil) Distribution Channel & Portfolio Mix 2019 GI Industry Growth -0.8% CIMB-143 +3.6% 2,134 2,181 2,083 2,136 2,121 2,198 2014 O Copyright Allianz SE 2015 2016 2017 2018 2019 Tele- marketing 2.7% Allianz Agent 57.5% Broker 13.3% Motor 62.6% Banca 1.6% Franchise 24.9% Misc 12.3% PA & Health 6.0% Marine 3.6% Fire 15.5% 13#14GENERAL BUSINESS: HIGHER UNDERWRITING PROFIT & INVESTMENT INCOME Profit Before Tax (RM' mil) 320.6 +13.0% PBT Drivers (RM' mil) Allianz ⑪ +12.3 +28.8 +0.7 362.4 320.6 362.4 PBT 12M 2018 UW result Investment Others income PBT 12M 2019 12M 2018 137.8 182.6 0.2 320.6 12M 2019 166.6 194.9 0.9 362.4 2018 2019 Change 28.8 12.3 0.7 41.8 14 O Copyright Allianz SE#15GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER CLAIMS RATIO Allianz ⑪ Combined Ratio 1.8 pts ■Commission Ratio ■Claims Ratio 90.6% 92.9% 93.8% 93.6% 92.8% 91.3% 90.3% 96.4% 86.0% 91.0% 18.4% 16.7% 17.9% 18.7% 20.0% 18.4% 20.5% 17.2% 20.2% 24.5% Expense Ratio Net Combine Ratio excluding one-off impact: 61.1% 62.9% 63.4% 61.0% 62.1% 65.3% 58.7% 61.1% 4Q 2019 12M 2019 59.1% 51.6% Expense Ratio 24.5% 20.2% Claim Ratio 53.7% 59.7% Commission Ratio 13.5% 12.6% 12.8% 12.1% 11.7% 12.6% 12.3% 12.2% 12.0% 12.8% 9.9% 11.7% Net Combine Ratio 91.7% 92.5% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 12M 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 12M 2019 O Copyright Allianz SE 15#16TRANSFORMATION OF GENERAL BUSINESS Allianz Push For Profitable Portfolio 1 Shift to NM 2 Introduce new products 3 Motor profitability 4 Retention & Renewal Management ए Underwriting & Claims Transformation 5 Claims management 6 Underwriting & pricing Organisational Transformation 7 Increase corporate productivity 8 Agency 2.0 9 Branch configuration Digital Leadership 10 E2E digital ecosystem to serve as customer acquisition & sales engine Digital and Advanced Analytics: Digital strategy roadmap; advanced analytics roadmap Governance: Project management architecture with clear KPIs; Evolusi team setup Change Management: Change story, communication and employee engagement plan O Copyright Allianz SE 16#17Allianz DIGITAL PARTNERS AT A GLANCE Growth via Digital Partnerships Digital Channel GWP grew by more than 2.5x from RM3.6mn in 2018 to RM 9.4mn in 2019 e-Commerce recommend.my kaodim Fintech/ Others Financial Ringgit Plus CompareHero.my We compare, you save Policy Street Mobility/ Home SPEEDHOME TraqKid care@kipleHome Transport Touch a til ze SOCAR NGO eWallet KATSANA Grab CARPUT ... and more 50+ on board 32 Active as at 2019 How It Works/ Partnership Benefits Participate in an open digital ecosystem through win-win digital partnerships Customised Solutions - Design products & services to match partners' business needs and its customers profiles Customer Centricity - Enhance partners' customer and/or employee engagement by offering relevant insurance protection Accessibility - Nationwide Allianz branch network; digital product setup enables quick roll-out of products to partner's platforms Partnership Support - continuous support on partner onboarding, marketing & promotion, product training etc. Reciprocity - Allianz customers exposed to partners' products and services & vice versa O Copyright Allianz SE 17#18LIFE BUSINESS 03 O Copyright Allianz SE 30-Jun-20 Allianz ⑪ 18#19ALLIANZ LIFE: OUTPERFORMED THE MARKET Annualised New Premiums 12M 2019 Growth 12M 2018 Growth Allianz 5-year CAGR (2014-2019) ALLIANZ Distribution Channel ALLIANZ LIFE (% growth) Industry (% growth) Market share Market rank ALLIANZ LIFE (% growth) Industry (% growth) LIFE (% growth) Industry (% growth) Agency (Traditional) 13.4% 2.3% 14.5% 3 60.0% 1.3% 11.6% -7.8% Agency (IL) 11.4% 14.4% 9.3% Agency (Total) 12.0% 11.8% 10.4% 55 5.5% -1.9% 7.6% 8.4% 16.5% -1.2% 8.6% 3.7% Bancassurance 35.2% 21.9% 5.0% 8 3.7% 4.9% 21.5% 16.7% Employee Benefits 20.0% 6.6% 9.1% 4 21.4% 6.9% 9.6% 11.1% Total 16.3% 14.8% 8.5% 5 14.2% 1.0% 10.6% 7.5% O Copyright Allianz SE Notes: Source: LIAM statistic as of 31 December 2019 19#20Allianz ⑪ LIFE BUSINESS: GROWTH IN BOTH SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums ("GWP") (RM' mil) O Copyright Allianz SE 2,383.5 +14.3% 2,725.0 GWP Mix & Growth (%) (12M 2019) Mix Single Premium 18.0% Recurring 2,235.6 1,963.3 Premium 82.0% Growth 420.2 489.4 16.5% 13.9% 2018 2019 Single Premium Recurring Premium Single Premium Recurring Premium 20 20#21Allianz LIFE BUSINESS: GROWTH IN ANP DRIVEN BY AGENCY, BANCASSURANCE AND EMPLOYEE BENEFITS CHANNELS Annualised New Premiums ("ANP") (RM' mil) ANP Channel Mix (%) (12M 2019) 512.8 85.8 +16.0% 594.8 Alternative Distribution/ Bancassurance Corporate [ 4.1% 116.0 19.6% 454.0 404.5 2018 2019 Agency Bancassurance Direct Marketing Employee Benefits O Copyright Allianz SE Agency 76.3% 21 24#22LIFE BUSINESS (AGENCY): CONTINUE TO FOCUS ON PROFITABLE REGULAR INVESTMENT-LINKED PRODUCTS WITH CONTRIBUTION FROM TRADITIONAL BUSINESS Allianz Agency Annualised New Premiums (RM'mil) Agency Product Mix (%) (12M 2019) By ANP +12.2% 454.0 Traditional 26.9% By Policy Count Traditional 13.0% 404.5 107.7 O Copyright Allianz SE 121.9 332.1 296.8 2018 2019 Investment-Linked Traditional Investment- Linked 73.1% Investment- Linked 87.0% Agency ANP Growth (%) (12M 2019) Investment- Linked Traditional 11.9% 13.2% 22 22#23LIFE BUSINESS DELIVERED PROFITABLE GROWTH Profit Before Tax (RM' mil) +26% 67% 72 Fair value gain and non-recurring 32% 269 204 Core profit 173 138 106 117 2014 O Copyright Allianz SE 2015 2016 2017 2018 2019 Allianz ⑪ Focus on healthy and sustainable margins supported by disciplined pricing methodologies and sound risk management Focus on writing more investment- linked protection products Delivered RM259 mn in NBV (29.6% y-o-y growth) 23 23#24Allianz ⑪ OPERATION TRANSFORMATION OBJECTIVES Change Customer and Distributor Experience and drive end-to-end Automation: "True Straight Through Processing (STP)" Transformation success based on its three pillars: Key Principles: Simple Paperless • Instant Issuance of Policy in 5 minutes ( needs analysis, quotation and e-submission in 20-25 minutes) • With zero paper. "True" STP with no human intervention • Customer As at Dec 2019, 23% of all new policies were issued within 5 minutes (>35% in May 2020) Onboarding 70% of all new business were issued with e-Policies (>80% in May 2020) • Increase usage and enable simple self-service through portals and apps for enquiries and transactions. • • For agents, the ambition is 95-100% (digital) self-service via Agent Portal/Discover on behalf of customer. Customer has the choice for multi-access but focus on adoption of Customer Portal. . STP and digitisation for Servicing. Customer and Agent . 100% E-Notification - Paperless Communication to Customer Engagement ⚫ 30% of all servicing transactions were completed digitally in December 2019 (almost 50% in April 2020) with >90% in of all communication sent electronically. Claims Experience • Instant Payment of Claims to Customer with STP • 100% Cashless • Al for Fraud detection and Claims Auto-Adjudication (CAA) • O Copyright Allianz SE Hospital network integration and Automation and Biometrics for health Claims Digital submission for health and reimbursement claims was at 28% in December 2019, and growing to 33% in April 2020 A Instant Automated * 24 24#25Allianz ⑪ ITEM 2 (a) OF THE AGENDA ORDINARY RESOLUTION 1 To approve the payment of Directors' fees of RM2,036,194 to Non-Executive Directors of the Company and its insurance subsidiaries for the financial year ended 31 December 2019 O Copyright Allianz SE 30-Jun-20 25 25#26Allianz ⑪ ITEM 2 (b) OF THE AGENDA ORDINARY RESOLUTION 2 To approve the payment of Directors' benefits of up to an amount of RM1,140,860 to Non- Executive Directors of the Company and its insurance subsidiaries from 1 July 2020 until the next Annual General Meeting of the Company O Copyright Allianz SE 30-Jun-20 26#27ITEM 3 OF THE AGENDA Allianz ⑪ ORDINARY RESOLUTION 3 To re-elect Y. A.M Tunku Zain Al-'Abidin Ibni Tuanku Muhriz, who retires by rotation in accordance with Clause 19.1 of the Constitution of the Company O Copyright Allianz SE 30-Jun-20 27 27#28ITEM 4 (a) OF THE AGENDA ORDINARY RESOLUTION 4 To re-elect Madam Claudia Salem, who was appointed to the Board during the year and retires in accordance with Clause 19.7 of the Constitution of the Company O Copyright Allianz SE 30-Jun-20 Allianz ⑪ 28#29ITEM 4 (b) OF THE AGENDA Allianz ⑪ ORDINARY RESOLUTION 5 To re-elect Mr. Peter Ho Kok Wai, who was appointed to the Board during the year and retires in accordance with Clause 19.7 of the Constitution of the Company O Copyright Allianz SE 30-Jun-20 29 29#30Allianz ⑪ ITEM 5 OF THE AGENDA ORDINARY RESOLUTION 6 To re-appoint Messrs. PricewaterhouseCoopers PLT as Auditors of the Company for the financial year ending 31 December 2020 and to authorise the Directors to fix their remuneration O Copyright Allianz SE 30-Jun-20 30#31ITEM 6 OF THE AGENDA Allianz ⑪ ORDINARY RESOLUTION 7 Proposed Shareholders' Mandate for Recurrent Related Party Transactions with Allianz SE Group O Copyright Allianz SE 30-Jun-20 31#32ITEM 7 OF THE AGENDA Allianz ⑪ ORDINARY RESOLUTION 8 Proposed Shareholders' Mandate for Recurrent Related Party Transactions with Rapidpro Consulting Sdn Bhd. O Copyright Allianz SE 30-Jun-20 32 32#33ALLIANZ MALAYSIA BERHAD (12428-W) 46TH ANNUAL GENERAL MEETING ZZZALY TUESDAY, 30 JUNE 2020 MEETING ENDED Allianz (