Pozavarovalnica Sava

Investor Presentation • Dec 23, 2022

December 2022 STRATEGY OF THE SAVA INSURANCE GROUP FOR 2023–2027

Disclaimer

IMPORTANT CAUTIONARY STATEMENTS CONCERNING PRELIMINARY IFRS 17 AND IFRS 9 (IFRS 17/9) EXPECTATIONS AND ASSESSMENTS

The audited annual report of the Sava Insurance Group and Sava Re for 2022 under IFRS 4 will be published in March 2023. On 1 January 2023, IFRS 4 will be replaced by IFRS 17, which is a new accounting standard applicable to (re)insurance contracts that will result in accounting changes with impacts on the Sava Insurance Group's consolidated income statement and balance sheet. Starting on 1 January 2023, the Sava Insurance Group will also begin applying the IFRS 9 standard on classifying and measuring financial assets and liabilities and certain contracts.

The Sava Insurance Group's estimates, expectations and assessments relating to IFRS 17/9 in this presentation are by their nature preliminary and subject to change during the formal implementation of IFRS 17/9 in the Group's financial reporting (IFRS 17/9 Implementation) through 2023. This presentation reflects the Group's estimates, expectations and assessments of the impact of IFRS 17/9 Implementation exclusively as of the date hereof. Undue reliance should not be placed on such estimates, expectations and assessments, which are qualified in their entirety by the forward-looking statements in the paragraphs below. Moreover, investors should note that no information related to IFRS 17/9 set out in this presentation has been audited or subject to a limited review by the Sava Insurance Group's auditors. In addition, IFRS 17/9 Implementation involves accounting judgements and choices between alternative accounting approaches. While this presentation reflects the Group's current assessment and expectations regarding these judgments, it is possible that, as the Group and the industry adapt to IFRS 17/9 reporting, the Group may determine that adjustments to its initial judgments are needed. There can be no assurance that such judgements and, more broadly, the ultimate impacts of IFRS 17/9 Implementation on the Group's presentation of its business, results of operations or financial condition will not differ materially from the illustrative information contained in this presentation.

IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES

Forward-looking statements

This document may contain forward-looking statements concerning the expectations, plans and goals of the Sava Insurance Group, which are based on estimates and assumptions of Sava Re's management board. Undue reliance should not be placed on such statements contained herein because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, in particular business performance, to differ materially from those expressed or implied in this document.

Duty to update

The Sava Insurance Group and Sava Re undertake no obligation to publicly update or revise any of these forward-looking statements or other information included in this document, except as required by applicable laws and regulations.

Non-GAAP financial measures

In addition, this presentation may refer to certain non-GAAP financial measures or alternative performance measures used by management in analysing the Sava Insurance Group's operating trends, financial performance and financial position, and providing investors with additional information that management believes to be useful and relevant regarding the Sava Insurance Group's and Sava Re's results. These non-GAAP financial measures generally have no standardised meaning and may therefore not be comparable to similarly labelled measures used by other companies. As a result, none of these non-GAAP financial measures should be considered in isolation from, or as a substitute for, the Group's consolidated financial statements and related notes prepared in accordance with IFRSs.

Strategic plan of the Sava Insurance Group for 2023–2027 3

Through commitment and constant progress, we ensure security and quality of life.

We build relationships with care, integrity and respect.

We exceed customer expectations through our ongoing effort to make improvements and strengthen relationships.

We are active in relation to our natural and social environment.

We are building a customer-centric, flexible and sustainability-oriented insurance group.

Our mission Our vision Our values

Contents

• Strategic priorities for 2023–2027
• Targets by Group activity and market for 2023–2027

Achievement of 2020–2022 strategy targets

Strategic plan of the Sava Insurance Group for 2023–2027 5

Strategy for 2020–2022

100% 95% 90% 85% 2019 2020 2021 2022 estimate Combined ratio non-life insurance + reinsurance < 95%

Achievement of 2020–2022 strategy targets

Return on investment portfolio

Contents

• Achievement of 2020–2022 strategy targets
• Strategic priorities for 2023–2027
• Targets by Group activity and market for 2023–2027

Strategic plan of the Sava Insurance Group for 2023–2027 7

Focusing on the customer Streamlining business processes Building sustainability

Key strategic priorities for 2023–2027

Strategic priorities for 2023–2027

Strategic plan of the Sava Insurance Group for 2023–2027 8

Targets for 2023–2027

average annual

Growth in operating revenue*

Solvency ratio

in 2027

Operating revenue*

non-life insurance + reinsurance

< 95%

Combined ratio

* Gross premiums written for (re)insurance companies and operating revenue for non-insurance companies.

9.5–10.5%

Return on equity

rising to 2.2% by 2027

Return on investment portfolio

Strategic priorities for 2023–2027

optimal capitalisation

Driving growth in all markets where we are present

Operating revenue planned for 2027

	Slovenia
	Insurance	> €600m	North
	Reinsurance	> €140m	Macedonia
	non-Group		Insurance > €20m
	Other	> €18m	Pensions > €7m
	Croatia		Montenegro
	Insurance	> €20m	Insurance > €20m
	Serbia		Kosovo
	Insurance	> €45m	Insurance > €30m

The key goal of the dividend policy is stable annual dividend growth, with due consideration of:

Sava Re aims to distribute between 35% and 45% of the net profit of the Sava Insurance Group each year over the period 2023–2027.

Dividend policy

• the estimated surplus of eligible own funds over the solvency capital requirement under Solvency II
• the Group's own risk and solvency assessment
• the capital models of the rating agencies S&P Global Ratings and AM Best
• and the Company
• new development projects requiring additional capital
• other relevant circumstances affecting the financial situation of the Company

the approved annual and strategic plans of the Group

Strategic plan of the Sava Insurance Group for 2023–2027 11

Key strategic priorities for 2023–2027

Focusing on the customer Streamlining business processes Building sustainability

Modernising information technology Building teams of satisfied and motivated

employees

Growing through acquisitions

Strategic priorities for 2023–2027

• Achievement of 2020–2022 strategy targets
• Strategic priorities for 2023–2027
  • Customer at the centre of everything we do
  • Process optimisation Sustainable development Information technology Employees
  • Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Contents

Ensuring the best and most comprehensive customer experience

Customer experience design Strategic initiatives

Better customer data management

Improved customer satisfaction

Higher customer retention

Automated and digitised interactions

Promotion of digital channels

Customer at the centre

We will build an integrated communication platform by connecting all touchpoints to the central customer relationship management platform and gradually moving to digital, personalised and

automated communication.

Integrated communication

Key elements for building an integrated customer communication platform across all channels

Integrated communication

At the heart of integrated communication is a new operational CRM system, which will be the key link between all communication channels and back-office systems, providing a single touchpoint for all communication.

Video call E-doctor E-mail Call Agent Ordinary mail E-janitor

Personal contact in sales and claims SavaNet Websites SMS message Online chat Social networks Online call

Remote damage survey

Call centre First contact resolution > 80%

We will help our customers move more smoothly across all touchpoints in the customer journey.

Hybrid sales model

We will streamline sales, administration and support activities, and empower agents and distributors with relevant tools and insights, so they can spend more time on customer care.

Hybrid sales model

Integrating operational CRM with back-office systems and digitising processes are the two objectives that will help us achieve better customer support.

Customer support

Key drivers for improving support activities

1 Integrating operational CRM with back-office systems

Strategic plan of the Sava Insurance Group for 2023–2027 18 Strategic priorities for 2023–2027 Customer at the centre of everything we do

2

Implementation of self-care services (corporate website, online sales sites, SavaNet, chatbot) and digital solutions (e-signing, remote damage assessment, video-identification)

First contact resolution

By transforming the call centre into a holistic customer care centre, we aim to build a more genuine customer relationship with a personal approach.

Customer support

Customer at the centre of everything we do

Process optimisation

• Sustainable development
• Information technology
• Employees
• Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Strategic priorities for 2023–2027

Achievement of 2020–2022 strategy targets

Contents

We keep optimising business processes to make them more efficient and faster while cutting operational expenses.

Main objectives of process optimisation

2

Set up mechanisms for monitoring the effectiveness of processes (KPIs, dashboards)

1

Key areas for process optimisation

The key areas for process optimisation include process automation, rules and recommendations for making changes, and better process alignment.

Key areas of work

Rules and recommendations to prepare for change

• functional requirements
• involving different
• stakeholders
• key document for remaining phases of the software
• solution development

Change teams

• strong domain knowledge
• solution orientation

• articulation of a software solution for implementability checks

• identification of repetitive

• upgrading existing
• software solutions
• using software robots for automation

Alignment across all processes

• optimisation requires an integrated approach
• better alignment of organisational units

• Customer at the centre of everything we do Process optimisation Sustainable development Information technology Employees Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Strategic priorities for 2023–2027

Achievement of 2020–2022 strategy targets

Contents

Strategic plan of the Sava Insurance Group for 2023–2027 24

Main strategic sustainable development objectives 1 A credible and socially

responsible partner

2 A socially responsible asset and equity manager

3 A socially responsible and attractive employer

4 A group socially responsible to the wider community

We build long-term corporate social responsibility in continuous dialogue with our stakeholders, supporting global sustainability goals, with a particular focus on climate change, the health and

well-being of our customers, employees and the wider community.

Sustainable development

Sustainable development

Five key initiatives are identified in our Sustainable Development Strategy up to 2027.

We are pursuing the European ambition of a 55% cut in GHG emissions by 2030 for Group operations (scope 1 and 2) and for our investment portfolio compared to 2022 levels.

Achieving this target also depends on the climate action taken by the countries where we are present.

• Compliance with guidelines on responsible underwriting of non-life insurance business
• Reducing the carbon footprint of the portfolio by excluding fossil-fuel related activities (Do No Significant Harm principle)
• Developing products and activities and increasing revenue from products aligned with the taxonomy

Increasing ESG investments to exceed 20% by 2027

• Digitalising operations and lowering the carbon footprint by reducing business travel, paper consumption and waste
• Supply-chain review: assessing suppliers from a social and environmental responsibility perspective

Net Promoter Score: establishing a uniform methodology for the Group and monitoring trends

Measuring satisfaction using a suitable HR methodology and promoting a sustainability culture through the Heart for the World initiative

Responsible (re)insurance underwriting

Sustainability in the value chain and processes

Improving customer satisfaction

Satisfied and committed employees and strengthening sustainability culture

• Achievement of 2020–2022 strategy targets
• Strategic priorities for 2023–2027
  • Customer at the centre of everything we do Process optimisation Sustainable development Information technology Employees Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Contents

Areas designated for IT development

Business solutions and data warehouse

Strategic plan of the Sava Insurance Group for 2023–2027 27 Strategic priorities for 2023–2027 Information technology

IT processes and organisation

Infrastructure Security

We will gradually replace core business IT solutions, expand capacity and upgrade processes.

Business solutions and data warehouse

Data warehousing and business intelligence

Business solutions Business solutions and data warehouse

• Phasing in the new business IT solution for insurance (life and non-life) to replace the current solution
• Expanding capacities for using data and solutions in commercial use of the geographic information system
• Expanding capacities in fraud prevention
• Upgrading processes and technical support for performing complex tasks in data quality, data controls and a data dictionary
• Expanding the range of data sources included in the data warehouse and business intelligence reports for data warehouse user companies
• Expanding data from internal and external data sources to improve control of the 360-degree customer view, marketing support and claims handling, and to reduce operational and business risks

We plan to build a competence centre, upgrade the IT environment at the Group level and hire new IT staff.

IT processes and organisation

Progressive capacity building of the professional competence centre for solutions shared Group-wide

Ensuring sufficient human resources to provide support for the required level of IT service capacities

Upgrading the operational and risk-control IT environment at the Group level

IT processes and organisation

Business solutions IT management Human resources

We will upgrade our internal cloud, integrating it more deeply with external cloud services.

IT infrastructure

• centralised services in Group subsidiaries

Purchasing and implementing various systems for maintenance automation, expanding the range of the control environment's IT controls, and expanding the range of sensors for preventive detection and reduction of operational risks

We will upgrade our crisis response procedures while continuing to invest in organisational and technical controls.

IT security

• Continuously upgrading the crisis response process in cyber security and business continuity
• Expanding the range of penetration tests and establishing internal capacities for running them
• Excluding the chief information security officer (CISO) from IT (the planning – control – reporting process)

Setting up external cloud security during its implementation phase

• Customer at the centre of everything we do Process optimisation Sustainable development Information technology Employees Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Strategic priorities for 2023–2027

Achievement of 2020–2022 strategy targets

Contents

Strategic plan of the Sava Insurance Group for 2023–2027 33

Attracting and retaining the best talent

Key priorities of the HR strategy

Developing our staff Building a performance culture

Working towards sustainability Digitalisation and optimisation

Strategic priorities for 2023–2027 Employees

Attracting and retaining the best talent

• Building a recognised employer brand
• Adapting and updating methods for attracting and selecting staff
• Improving the experience of employees in all phases of the employee life cycle

Developing our staff

• Identifying and developing leaders
• Developing knowledge and competencies to achieve strategic business goals
• Promoting career opportunities within the Group

Building a performance culture

• Promoting transparent communication and respectful relations
• Setting structured goals
• Monitoring implementation
• Providing feedback
• Recognising and rewarding performance

Working towards sustainability

• Promoting a healthy and positive lifestyle for employees
• Encouraging individual and group involvement in ESG projects and activities
• Valuing diversity and promoting equality and inclusion
• Preventing discrimination and psychosocial risks

Strategic plan of the Sava Insurance Group for 2023–2027 38

Digitalisation and optimisation

• Optimising organisational and staffing structure for better alignment with strategic business goals
• Upgrading and digitising HR processes
• Adopting modern ways of working and flexible employment

Contents

• Customer at the centre of everything we do Process optimisation Sustainable development Information technology Employees Growth through acquisitions
• Targets by Group activity and market for 2023–2027

Strategic priorities for 2023–2027

Achievement of 2020–2022 strategy targets

We are planning to strengthen our position in our existing markets, selectively enter new markets, achieve economies of scale and keep abreast of industry developments.

Growth through acquisitions

Complementary activities

Insurance companies, international

Strengthening the Group's position in the region

• Achieving economies of scale
• Keeping abreast of capital market developments in the region and partnering with bank distributors

Pension companies

Strengthening the Group's position and achieving economies of scale in its existing

markets

Healthcare

Comprehensive range of health services

Achieving synergies and full integration of support activities into the Group's product range

Contents

• Achievement of 2020–2022 strategy targets
• Strategic priorities for 2023–2027
• Targets by Group activity and market for 2023–2027

Key strategic business pillars

Integral risk management

Corporate support functions

Insurance	Reinsurance operations
Non-life, Slovenia	Non-Group
Life, Slovenia	Group
Non-life, international
Life, international

Growth generators

Average return on revenue

Strategic plan of the Sava Insurance Group for 2023–2027 44

Contents

• Achievement of 2020–2022 strategy targets
• Strategic priorities for 2023–2027
• Objectives by Group activity and market for 2023–2027
  • Non-life insurance Life insurance Reinsurance Mutual funds and pensions Assistance services Management of financial investments

Non-life insurance

Better use of data in key product groups will take personalisation and preventive assistance services to a higher level, resulting in higher profitability.

Use of data for greater segmentation, improvement and personalisation of products

Enhance personalisation

Raise profitability

Improve preventive assistance services

Key strategic goals

Non-life insurance

Motor Home

Small and medium-sized enterprises Niche insurance Cyber Other major areas

• Portfolio profitability
• Data-based product segmentation, personalisation and redesign
• Sustainable product components
• New coverages for e-vehicles
• Partnering with providers of car sharing services

• Preventive services and mitigation of damage
• Assistance services
• Sustainable components of products (e.g. solar panel insurance)
• Data-based product segmentation, personalisation and redesign

• Product modularity (any choice of risks)
• Assistance services
• Sustainable components of products (e.g. solar panel insurance)

• Embedded insurance
• Insurance of leisure activities
• Simplicity of purchasing insurance
• Connectivity with external distributors

• Preventive services and mitigation of damage
• Assistance services
• Liaising with specialised cybersecurity service providers

• Digital equipment insurance
• Partnerships with banks, e.g. credit insurance
• Health insurance with assistance
• Upgrading the health insurance assistance experience

Non-life insurance

Gross premiums written

Slovenia

Average annual growth in gross premiums written > 3% Average combined ratio < 94%

Gross premiums written

International

Average annual growth in gross premiums written > 6% Average combined ratio < 95%

Life insurance

Key strategic goals

Health

Investment

and savings

Protection

• Wide range of protection products for target customer segments and sales channels
• Developing additional prevention coverages and services
• Linking insurance with solutions aligned with policyholder lifestyles
• Active involvement of customers and non-insurance providers in the life ecosystem

• Offering attractive unit-linked products for targeted customer segments and sales channels
• Providing additional services to best-rated customers
• Progressive integration of ESG strategies
• Developing less capital-intensive products

• Further development of new coverages and expanding into up-market health insurance
• Personalised product offer for best-rated customers

• Linking lifestyles to prevention programmes

• Addressing demographic challenges with a focus on long-term care products and services

Objectives by Group activity and market for 2023–2027 Life insurance

Strategic plan of the Sava Insurance Group for 2023–2027 49

We will achieve our strategic goals through in-depth customer segmentation, a flexible product mix and processes streamlined using new technologies.

Life insurance

Transparent and flexible product offer

Efficient development

through modular product design

Streamlined processes using new technologies Deep ESG alignment

customer segmentation

Life insurance

Gross premiums written

Slovenia

Average annual growth in gross premiums written > 2%

Gross premiums written

International

Average annual growth in gross premiums written > 10%

Reinsurance

Balanced diversification and growth of reinsurance portfolio in line with target profitability

By region, class of business and form of reinsurance

Portfolio alignment to ESG guidelines

Seeking new opportunities in renewable energy outside the Group

Use of modern approaches and new technologies

New CORE IT system, new pricing tools, development of aggregate exposure modelling

Objectives by Group activity and market for 2023–2027 Reinsurance

Average annual growth in gross premiums written > 4% Average combined ratio < 95%

Mutual funds

Development of own sales channels

and sales support

Enhanced product mix

by introducing life-cycle funds abroad

Continuous development of investment portfolios with risk-adjusted returns above the industry average

Upgrading internal processes and cost efficiency gains

Compound annual growth rate for assets under management > 8%

Pensions

Sales channels

banking, insurance, digital sales channel to be developed

Offering

range of mutual funds to be aligned to customer needs

Objectives by Group activity and market for 2023–2027

Assistance services

Portfolio diversification

Continue providing assistance services to non-Group customers

Development of sales and sales channels

Providing TBS Team 24 services outside insurance industry

Digitisation of the entire business environment of TBS Team 24

Digitalising and streamlining business processes to support call centre operators

Opportunities for entering new markets

Expanding to markets where the Sava Insurance Group is not present

Average annual revenue growth > 4%

We maintain a strong rating profile of our investment portfolio and keep focusing on ESG investments.

Management of financial investments

THANK YOU FOR YOUR ATTENTION.