Eurohold Bulgaria AD

Earnings Release • Aug 17, 2016

Realized sales in July 2016 by the companies in the group of Eurohold

EUROINS INSURANCE GROUP (EIG)

The insurance holding EUROINS INSURANCE GROUP registered a 11.2% increase in premiums (GWP) for July amounted to EUR 20.1 mm compared to EUR 18.1 mm for the same month of 2015. (Table 1.).

Table 1.
EIG	July
	(EUR'000)		Change (%)
	07'2016	07'2015
Euroins Bulgaria	3 700	4 745	-22.0%
Motor Hull	1 013	1 021	-0.7%
Motor TPL	2 007	1 523	31.7%
Property	204	1 437	-85.8%
Active reinsurance	-	-	-
Other	476	764	-37.8%
Euroins Romania	15 399	12 179	26.4%
Motor Hull	118	171	-31.3%
Motor TPL	14 671	11 382	28.9%
Property	223	254	-12.0%
Other	388	373	4.1%
Euroins Macedonia	992	1 066	-7.0%
Motor Hull	109	112	-2.2%
Motor TPL	623	688	-9.5%
Property	83	137	-39.9%
Other	178	129	37.4%
Euroins Life	40	109	-62.9%
EIG TOTAL GWP	20 132	18 100	11.23%
Euroins (HDI) Ukraine*	1 960	-	-

* Euroins (HDI) Ukraine will begin to consolidate in EIG by August 2016

Source: EIG

For the first seven months of 2016 the GWP of EUROINS INSURANCE GROUP registered 4.3% growth amounted to EUR 140 mm compared to EUR 134.1 mm for January-July 2015, according to preliminary data (Table 2.).

Euroins Bulgaria reported a decline in premiums in the first seven months of over 15%, which is the result of accounted in May'2015 EUR11.6 million from active reinsurance. If you eliminate the above one-off effect of reinsurance, the direct insurance business of Euroins Bulgaria was increased by above 23% for the first seven months of 2016.

Euroins Romania registered above 13% growth in premiums for the first seven months. As a result of the rapid pace of development in recent years, Euroins Romania is now the third company by market share on the Romanian insurance market. Currently, the company focuses on quality and diversification of its insurance portfolio through detailed market segmentation, which significantly reduces the levels of risk taken. For the current year the goal of management is to keep the market position and to improve significantly the financial result.

HDI Ukraine is already part of the group of Euroins Insurance Group, after Germanybased Talanx Group transferred the 99% of shares of the Ukrainian company to EIG on 12th of August. Ukraine's financial regulator approved the deal on 29th of July, 2016.

EIG	January-July (YTD)
	(EUR'000)		Change (%)
	01-07'2016	01-07'2015
Euroins Bulgaria	31 083	36 809	-15.6%
Motor Hull	6 700	6 123	9.4%
Motor TPL	14 778	9 919	49.0%
Property	1 646	3 139	-47.6%
Active reinsurance	1 400	11 565	-87.9%
Other	6 559	6 063	8.2%
Euroins Romania	103 360	91 341	13.2%
Motor Hull	773	935	-17.3%
Motor TPL	98 870	86 843	13.8%
Property	1 104	1 037	6.5%
Other	2 613	2 526	3.4%
Euroins Macedonia	5 065	5 314	-4.7%
Motor Hull	451	455	-0.8%
Motor TPL	3 278	3 327	-1.5%
Property	512	524	-2.3%
Other	824	1 009	-18.3%
Euroins Life	385	607	-36.6%
EIG TOTAL GWP	139 893	134 071	4.34%
Euroins (HDI) Ukraine*	7 423	-	-

Table 2.

* Euroins (HDI) Ukraine will begin to consolidate in EIG by August 2016

Source: EIG

AVTO UNION

The automotive holding AVTO UNION registered 19.2% decline with total of 344 sales of new PC and LCV for July, 2016 compared to 426 units realized in July, 2015. The highest number of sales for the month was realized by Espace Auto (Renault, Dacia) with 191

units, followed by Star Motors (Mazda) with 53 units, Auto Italia (Alfa Romeo, Fiat, Lancia, Maserati) with 42 units, Nissan Sofia (Nissan) - 29 units and Bulvaria (Opel, Chevrolet) with 29 units. (Table 3.)

Table 3.
Avto Union	July
Company	Units	Units	Change (%)
	07'16	07'15
AUTO ITALIA ALFA ROMEО,FIAT, LANCIA, MASERATI	42	31	35.5%
NISSAN SOFIA	29	32	-9.4%
NISSAN
ESPACE AUTO	191	264	-27.7%
RENAULT, DACIA
BULVARIA	29	39	-25.6%
OPEL, CHEVROLET
STAR MOTORS	53	60	-11.7%
MAZDA
TOTAL	344	426	-19.2%
			Source: Avto Union

For the first seven months of 2016 the automotive division of Eurohold registered 3% decline with 2242 sales of new PC and LCV compared to 2311 units for January-July 2015, according to preliminary data (Table 4.).

Table 4.
Avto Union	January-July (YTD)
Company	Units	Units	Change (%)
	01-07'16	01-07'15
AUTO ITALIA	237	199	19.1%
ALFA ROMEО,FIAT, LANCIA, MASERATI
NISSAN SOFIA	221	265	-16.6%
NISSAN
ESPACE AUTO	1236	1251	-1.2%
RENAULT, DACIA
BULVARIA	158	300	-47.3%
OPEL, CHEVROLET
STAR MOTORS	390	296	31.8%
MAZDA
TOTAL	2242	2311	-3.0%

Source: Avto Union