Tune Ins Holdings Berhad ( K) Presentation (Last Updated - November 2013)

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1 Tune Ins Holdings Berhad ( K) Presentation (Last Updated - November 2013)

2 Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Tune Ins Holdings Berhad ( TIHB ) for use in presentations by TIHB and does not constitute a recommendation regarding the securities of TIHB. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither TIHB nor any of TIHB's advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The information set out herein is still in draft form and may be subject to updating, completion, revision, verification and amendment and such information may change materially. It should be understood that subsequent developments may affect the information contained in this presentation, which neither TIHB nor its advisors or representatives are under an obligation to update, revise or affirm. This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities of TIHB. The securities of TIHB have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act ), and may not be offered, sold or delivered within the United States or to U.S. persons absent from registration under or an applicable exemption from the registration requirements of the United States securities laws. This presentation and the information contained herein is being furnished to you solely for your information and may not be reproduced or redistributed to any other person, in whole or in part in any manner. In particular, neither the information contained in this presentation nor any copy hereof may be, directly or indirectly, taken or transmitted into or distributed in the U.S., Canada, Australia, Japan or any other jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of the United States or other national securities laws. No money, securities or other consideration is being solicited, and, if any is sent in response to this presentation or the information contained herein, it will not be accepted. By receiving this document, you acknowledge that you are an institutional investor within the ambit of Schedules 6 or 7 of the Capital Markets and Services Act This document should not be disclosed by you to any other person. By viewing this presentation, you are deemed to have represented and agreed that you and any customers you represent are not a U.S. person and are outside of the United States, and you are not acting for the account or benefit of a U.S. person (as defined in Regulation S under the Securities Act). 2 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

3 Purpose of Presentation 1 Company Overview 2 Our Business Pg 4 Pg 7 3 Plans & Strategies Pg 15 4 Financial Highlights Pg 24 5 Conclusion Pg 41 3 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

4 1. Company Overview 4 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

5 Tune Ins Holdings Corporate Structure Tune Group Sdn. Bhd. 1 AirAsia Berhad CIMB SI II Sdn Bhd. Retail / Institutional Investors 25.07% 16.19% 14.06% 44.68% Tune Ins Holdings Berhad (TIH) Tune LifeRe Ltd (TLR) 100% 100% 83.3% 80% Tune GenRe Ltd (TGR) Tune Insurance Malaysia Berhad (TIMB) 2 Tune Insurance (Labuan) Ltd (TIL) 3 100% Tune Direct Ltd (TDL) 100% Tune Direct Malaysia Ltd (TDM) Notes: 1. Shareholders: Tan Sri Dr Tony Fernandes (50%) and Dato Kamarudin Meranun (50%) 2. The remaining 16.7% is owned by minority and unrelated shareholders. 3. The remaining 20.0% is owned by Multi-Purpose Capital Holdings Berhad 5

6 Tune Ins Holdings Corporate Overview Business Insurance product manager and underwriter (directly or indirectly) across Asia Pacific Two core lines of business: Online and General Insurance Markets 16 countries and territories* Key ASEAN and China Exclusive Arrangements AirAsia, Tune Hotels, MICO (Cebu Pacific) 6 mil policies issued in 2012; 5.74 mil YTD (as at 3Q 2013) Profitability Online : Low cost distribution model with high profit margins General insurance : Focus on bottom line / underwriting profits Shareholders Tune Money and AirAsia; strong shareholder support from Tony and Kamarudin Public largely foreign investors including some renowned investors Note: * Hong Kong and Macau are considered as individual markets 6 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

7 2. Our Business 7 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

8 Online Insurance Business Model How We Serve Our Partners Across the Region Policyholders Insurance Premium Risk Policy Local Insurance Partner Commissions Reinsurance Premium Risk Policy Host/Online Partner TGR e.g. AirAsia, Tune Hotels, AirAsia Expedia and Cebu Pacific Distribution Agreement Reinsurance Premium Risk External Reinsurance Agents Online insurance products sold through websites of AirAsia, Tune Hotels, AirAsia Expedia and Cebu Pacific Without the incremental cost of direct marketing to customers, we are able to offer our products very competitively We believe the ease and lower cost makes our products very attractive to customers In Malaysia, we are licensed to underwrite directly, through TIMB In Thai, Indo, Sing, Aus, Phil, China, HK, Macau, Japan, Cambodia, Laos, Vietnam, Myanmar & India, Taiwan we have established arrangements with local insurance partners We are also in the process of securing arrangements in S.Korea & Brunei Products include AirAsia INSURE Travel Protection Plan, Cebu TravelSure, Tune Hotels Personal Accident Plan We buy excess of loss insurance to manage our underwriting exposure through highly-rated global reinsurers 8 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

9 Online Insurance Business Regional Reach AA Insure Travel Protection Plan INSURANCE PARTNERS TIMB KPI Dayin Mitra EQ ASIA MINAN ACE Tokojaya SOMPO ICICI Lombard ASIL ZURICH Malaysia Thailand Indonesia Singapore Hong Kong China Australia Laos Japan India Myanmar Taiwan Macau Vietnam Philippines Cambodia New market launch targets Brunei S.Korea Dubai Source: AirAsia s website (chart), Company 9 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

10 Online Insurance Business Low-cost Distribution AirAsia INSURE Travel Protection is available via AirAsia s online booking page, manage my booking and web check-in module In excess of 200 million passengers have flown with AirAsia, 160 routes, 81 destinations, 18 countries, 51 unique routes, 154 aircraft across the region. Provides vast opportunities for TIH to leverage its platform for marketing and distribution. Source: AirAsia Bhd Investor Presentation October Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

11 Online Insurance Business Replicable Business Model 1 Successful model and brand platform Fixed long-term revenues, low operating cost Highly scalable to roll-out across multiple regions Geographical breakdown Policies Issued for 3Q2013 Total no. of policies = 2.09 mil 2 3 Established Local Relationships Operational Platform & Know-how Established network of local insurance partners across key Asian markets Difficult to replicate, providing barrier to entry Proprietary TIPG Platform, globalized IT systems Share know-how and best practices across geographies Singapore 5% (6%) Indonesia 14% (14%) China 8% (5%) Others 8% (6%) Malaysia 45% (50%) 4 Talent Management Ability to attract and retain talent Active training & development program Thailand 20% (19%) Note: * China includes Hong Kong and Macau Key (font colour): Update: Entered into an agreement in May 2013 with Malayan Insurance Co Inc (Php) to manage CEBU Pacific Air International passengers (departing from other countries) effective June Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

12 General Insurance Business Product Offering We are licensed to issue policies in all classes of general insurance in Malaysia across a broad range of industry and customer segments Motor Foreign Workers Fire Engineering TIMB Marine Cargo Personal Accident Health & Dental 12 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

13 General Insurance Business Turnaround Story TIMB was acquired in May 2012 to enable us to capture revenue from underwriting general insurance including travel insurance in Malaysia. Post acquisition, we have taken active steps to position TIMB as a provider of a diversified portfolio of insurance products and realize synergies with our online insurance business with the following results and objectives: Turnaround Enhance Integrate Grow Improve capital base (CAR) Optimise investment portfolio/ reduce equity exposure Manage underwriting Optimising claims process Manage expenses Enhance existing management team by making appropriate hires Increased training and change profit commission strategy New brand launched on 27 Sep 2012 Introduce more efficient processes/ technology Product mix e.g. reducing motor exposure Wider range of products to AirAsia/Tune Group and its customers Gateway to introduce no-frills products to TIMB s motor insurance relationships Leverage BIG to promote our offerings Brand / recognition through digital direct proposition and differentiated products Cross-sell More complex business Teams set up to support family can support nonfamily e.g. aviation New accounts acquired since the acquisition include listed companies in engineering, manufacturing & publication industries. 13 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

14 Our Journey So Far Q3 FY09 Set up Labuan based captive JV Tune Insurance Labuan 2010 Q4 FY10 Management team enhanced to realize the full potential of the Insurance opportunities 2011 Q2 FY11 Formed TMGR and TMLR & signed 1 st Collaboration Agreement with AA. TIH was formed as the Group Holding Company Q4 FY 11 First premiums received in TMGR 2012 Q2 FY12 Acquired Oriental Capital Assurance (renamed to Tune Insurance Malaysia Berhad) Q3 FY12 Signed Distribution Agreement with AA & Tune Hotels to manage Travel Insurance Q1 FY13 Listed on Main Market of Bursa Malaysia with market cap of RM 1 billion. Q2 FY13 1. Signed CSPA to acquire Indonesian Gen Insurance Co. 2. Signed Strategic Partnership with Malayan Insurance to manage CEBU Pacific Air Int l Passenger Travel Insurance 3. TIH and TMGR (RI Co) were assigned A 1 /P1 ratings from RAM Services 14

15 3. Plans & Strategies 15 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

16 Plans & Strategies Leverage on the Growth of AirAsia s Businesses Expand to all markets where AA operates Expand into new markets alongside AA (e.g. India AOC) Manage the insurance needs of AA s customers beyond just Travel Insurance Improve Online Take/up Rates & Tailor our Sales & Marketing Efforts Improve consumer education through tubetorials, advertorials, personalisation and advocates Leverage our access to brand recognition of AA and Tune Companies Tailor our marketing efforts through data analytics / personalisation in all markets Replicate & Expand Travel Insurance Business Model Expand our travel insurance business by establishing tie/ups with other partners e.g. other airlines, hotels, travel agents Leveraging our proprietary system, strong local relationships and on/the/ground experience Expand beyond travel insurance through Business-to-Consumer (B2C) distribution Capture Synergies from TIMB Integration & Diversify Product Offering Improve profitability and portfolio mix of TIMB s products Develop a quality branch / agency force distributing the desired mix of products Improve effectiveness of IT systems to enable e-submission and real time MIS Leverage AA and Tune Companies other businesses for marketing TIMB products Enhance Revenue Streams via Strategic Acquisitions Selectively seeking opportunities to acquire businesses with the relevant licenses in our core SEA markets Capture underwriting revenue previously ceded to third party insurance partners in these markets Broaden our ability to offer a range of products especially via B2C 16 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

17 Leverage on the Growth of AirAsia s Businesses Brunei South Korea AirAsia Markets Our Markets Malaysia Thailand Indonesia Singapore Australia China Macau Hong Kong Philippines Cambodia Myanmar and Taiwan launched this year Travel insurance for Zest Air AA India AOC WIP 504 aircraft across the region Increasing adoption of internet booking Saudi Arabia Vietnam Laos India Japan Myanmar 65m page visits per month from 25m unique visitors Nepal Taiwan LCC share of market continually rising 17

18 Improve Online Take/up Rates & Tailor our Sales & Marketing Efforts Brochure Offline Online Bunting Airport adverts Education via social media Video on YouTube, weekly challenge on Facebook and Twitter Billboard Inflight Ads Integrated Campaign In-flight Magazine MATTA Ground activation Radio Ad Online Ads Targeted Online banners ads Facebook Application TUNETASTIC RACE Car wrap/mobile advertising Targeted Monthly edm 18

19 Replicate & Expand Travel Insurance Business Model Strategic partnership with Malayan Insurance Co. Inc. (MICO) in the Philippines Partnership within AirAsia/ Tune Group Insurance for Tune Hotels guests MICO Leading non-life insurance co. in Philippines Cebu Pacific Air Philippines largest carrier Travel insurance for Cebu Pacific Air passengers w.e.f. 13 June Further business development ongoing Launched AA Expedia (white label) in Malaysia & Thailand Enablers RAM Rating for TMGR (claims paying ability): Long term A 1 Short term P1 Outlook - Stable Note: 1. For passengers departing from HK, Macau, Msia & Spore to the Philippines 19

20 Tune Direct Overview of Sales Model Sample 1 B2C Sample Inquiry 3 basic message delivery channel : Quote 3 Digital Lead Generation Channel address Web Channelbrowser cookies 2 Digital Direct Marketing Apply Ancillary Mobile Channelmobile numbers Buy Policy Policy Administration: Inquiry Change Claims Renewal 20

21 Capture Synergies from TIMB Integration & Diversify Product Offering Securing business opportunities within Tune Group companies & partners Recruiting quality agents to market profitable products 1,023 Total agents 1,131 Total agents Q 2013 Rebalancing portfolio mix Fire 6.0% Fire 6.0% Motor 35.0% PA & Medical 10.0% Misc 15.0% Marine 14.0% Motor 55.0% Misc 15.0% PA & Medical 27.0% Marine 17.0% 3Q Q

22 Notable Deals Salcon Berhad Star Publication Favelle Favco Berhad Emico Holdings Berhad Telco Corporation (M) Berhad Berhad Boon Siew Group Kossan Group Evergreen Fibreboard Berhad Century Logistics Holdings Berhad Headboard Berhad London Biscuits Holdings Berhad Press Metal Berhad Tomypak Berhad Yinson Holdings Berhad Ralco Corporation Berhad Versatile Creative Berhad Knee San Berhad Teck Seng Holdings Berhad 22

23 Enhance Revenue Streams via Strategic Acquisitions Ang Andi Bintoro Meilyana Bintoro Ang Andi Bintoro 78.5% 21.2% 0.26% 30% 70% PT Tune Batavia Insurance 1 Target to own 70% equity in PT Batavia Mitratama Insurance Total investment: Approximately USD 9 million (depending on NTA upon completion) Retain 30% profit from Indonesian travel insurance business & initiate regional footprint Note: 1. Name is for illustration purposes only 23

24 4. Financial Highlights 24 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

25 3Q 2013 Results - Key Highlights Continued Growth Group operating revenue RM 98.8 million up 44.3% v 3Q 2012 and RM million up 107.3% v YTD 2012 Online travel sales Up 48.8% v 3Q 2012 and 36.0% v YTD 2012 TIMB sales RM 80.5 million up 51.0% v 3Q 2012 and RM252.3 million up 39.3% v YTD 2012 Continued diversification 55% of online travel business from non-malaysian markets up from 50% in 3Q 2012 TIMB non-motor insurance up from 45.0% in 3Q 2012 to 65.0% in 3Q 2013 Increased Profits Group PAT - RM 17.6 million up 59.3% v 3Q 2012 and RM50.2 million up 81.5% v YTD 2012 Online travel - RM 13.5 million up 48.0% v 3Q 2012 and RM37.0 million up 44.3% v YTD 2012 TIMB PAT - RM 5.0 million down 42.4% v 3Q 2012 and RM19.3 million up 45.1% v YTD 2012 Strong Balance Sheet Total assets RM 976 million. TIMB CAR Increased from 226% as at 31 Dec 2012 to 269.5% as at 30 Sept Zero debt Low Risk Investments YTD Investment income RM 18.2 million; equities < 1% 25

26 Unaudited Financial Results (Statutory*) Group PAT increased 82% to RM50.2 million YoY; Group PBT increased 65% to RM53.0 million YoY 3Q Q Q 2012 (Restated) 3Q vs 2Q Variance 3Q vs 3Q Variance YTD 2013 YTD 2012* (Restated # ) Y-o-Y Variance (RM 000) (RM 000) (RM 000) (%) (%) (RM 000) (RM 000) (%) A B C A vs. B A vs. C D E D vs. E Operating Revenue 98,810 96,707 68, , , Net Earned Premiums 61,452 61,551 57,035 (0.2) , , Investment Income 1 4,793 5,516 8,058 (13.1) (40.5) 18,189 11, Fees & commission income 6,163 6,635 2,272 (7.1) ,388 3, Net Claims (21,495) (27,331) (25,375) (21.3) (15.3) (70,693) (35,376) 99.8 Other Expenses (30,839) (30,457) (28,084) (2.7) 9.8 (90,174) (50,591) 78.2 Profit before Tax 20,074 15,914 13, ,015 32, Profit after Tax 17,623 17,323 11, ,169 27, * Based on statutory accounts (TIMB was acquired on 23 May 2012 thus only 4 months results included in YTD 2012). # Restated after Purchase Price Allocation adjustments for May 2012 OCA acquisition (Additional amortisation and depreciation expenses of RM0.5 million (net of tax) for YTD 2013 and RM 0.2 million for YTD 2012). 1 Investment income = investment income + realised gains & losses + other operating income 26

27 Pro Forma Operating Revenue Year-on-year increase through growth in Online sales and TIMB non-motor sales % of Pro Forma Operating Revenue Online TIMB 14.6% 85.4% 17.6% 82.4% 20.0% 80.0% 19.9% 80.1% 23.0% 76.6% 24.5% 75.5% 21.6% 78.0% 24.0% 75.5% RM mil YTD 2012 YTD Q Q Q 2013 Gross operating revenue has increased 12.9% v YTD 2012 whereas gross written premium has increased 28.8% v YTD 2012 and by 42.6% v 3Q 12 reflecting the focus on quality not quantity immediately following the acquisition of TIMB Key:

28 Pro Forma Net Earned Premiums 1 Year-on-year growth despite motor quota share % of Pro Forma Net Earned Premiums Online TIMB 25.8% 74.2% 25.8% 74.2% 31.3% 68.7% 29.9% 70.1% 39.8% 60.2% 41.3% 58.7% 29.1% 70.9% 36.4% 63.6% 41.8% 58.2% RM mil YTD 2012 YTD 2013 YTD 2013 (Excl MMIP) Q Q Q 2013 YoY increase due to growth in Online business, offsetting decline in TIMB s net earned premium reflecting focus on underwriting profits including a 25% motor quota share undertaken to help derisk the motor portfolio. Key: 1 Net earned premium = gross earned premium received - premiums ceded to external reinsurers

29 Pro Forma Net Claims 1 & Net Claims Ratio 2 Continued improvement in net claims and net claims ratio RM mil (%) % 52.1% 45.8% 56.4% 40.3% 34.7% 44.5% 44.3% 35.0% 60.0% 50.0% 40.0% YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) Q Q Q % 20.0% 10.0% 0.0% Results reflecting continued focus on the expeditious settlement of outstanding claims as well as a more balanced sales portfolio and focus on quality business Key: 1 Net claims comprises of gross claims paid and gross change to contract liabilities as well as claims ceded to reinsurers and change to contract liabilities ceded to reinsurers 2 Net claims divided by net earned premium

30 Pro Forma Profit After Tax PAT up 78% vs YTD 2012 RM mil YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) Q Q Q 2013 PAT growth reflecting substantial growth in online sales, zero debt and continued growth in TIMB offsetting decline in investment income given more prudent investment strategy Key:

31 Pro Forma Key Operating Ratios Travel insurance and TIMB both contribute to good underwriting margins Pro Forma Management Expense Ratio 1 and Combined Ratio 2 ME Ratio (%) Combined Ratio (%) 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 83.9% 14.0% 77.8% 78.7% 11.5% 18.6% 17.1% 87.9% 78.5% 73.7% 23.8% 24.6% YTD 2012 YTD 2013 YTD 2013 (Exc MMIP) 100.1% 78.1% 16.1% 18.1% 83.1% 75.0% 24.4% 23.7% 2Q Q Q Q % 90.0% 60.0% 30.0% 0.0% Combined ratio QoQ improvement in underwriting margin reflecting reduced management expenses and a lower claims ratio. ME ratio Prudent provisioning in respect of Best Re adds 1.9% to 3Q Management expenses Key: 1 Management Expense divided by Net Earned Premiums 2 Sum of Net Claims, Management Expenses & Net Fees and Commissions divided by Net Earned Premiums

32 ONLINE: Sales and Profit Strong growth in travel insurance sales and profit Gross Sales before Reinsurance (RM mil) % % Q Q 2013 YTD 2012 YTD 2013 Commentary Gross sales before reinsurance increased 48.8% vs 3Q 2012 providing a similar increase in net profit. Good contributions from all major markets, in particular China and Thailand. Profit After Tax (RM mil) % % Q Q 2013 YTD 2012 YTD

33 ONLINE: Number of Policies Issued Continued growth in markets outside Malaysia in 3Q 2013 particularly China and Thailand China 8% (5%) Others 8% (6%) China 8% (5%) Others 7% (5%) Singapore 5% (6%) Singapore 5% (6%) Indonesia 14% (14%) Malaysia 45% (50%) Indonesia 15% (13%) Malaysia 46% (52%) Thailand 20% (19%) Thailand 19% (19%) 2.09 million Policies Issued in 3Q 2013 (vs million in 3Q 2012) 5.74 million Policies Issued YTD 2013 (vs million YTD 2012) Malaysia 57% in FY 2011, 51% in FY 2012, 46% in YTD 2013 Key (font colour):

34 ONLINE: Number of Policies Earned Revenue is recognised when a customer commences their journey China 8% (6%) Others 7% (5%) China 7% (5%) Others 6% (4%) Singapore 5% (6%) Singapore 5% (6%) Indonesia 17% (14%) Malaysia 46% (51%) Indonesia 16% (13%) Malaysia 47% (53%) Thailand 17% (18%) Thailand 19% (19%) 2.03 million Policies Earned in 3Q 2013 (vs million in 3Q 2012) 5.53 million Policies Earned YTD 2013 (vs million YTD 2012) Malaysia 52% in FY 2012, 47% in YTD 2013 Key (font colour):

35 TIMB: Gross Written Premium and Net Written Premium Fire and Online Travel Insurance drive increase in Premium Gross Written Premium (RM mil) Commentary % Gross Written Premium ( GWP ) % GWP increased YoY and QoQ mainly driven by increase in Fire and Online Travel Insurance Q Q 2013 YTD 2012 YTD 2013 Net Written Premium ( NWP ) Excluding motor insurance, NWP increased YoY by RM20 million or 85%. Net Written Premium (RM mil) - 0.4% % Q Q 2013 YTD 2012 YTD

36 TIMB: Portfolio Mix Portfolio well balanced as drive for quality agents selling the right mix of products continues Portfolio Mix Commentary Fire 6.0% Misc 15.0% PA & Medical 27.0% Motor 35.0% Marine 17.0% PA & Medical 10.0% Fire 6.0% Misc 15.0% Marine 14.0% Motor 55.0% Continued efforts undertaken to rebalance TIMB s business portfolio to more profitable segments of non-motor business. Portfolio mix (M:NM) for YTD 2013 is 31%:69% vs 48%:52% for YTD Q Q 2012 Total as at June 2013 No of Agents 3Q 2013 Total as at Sep 2013 Recruited Terminated Suspended (A) (B) (C) (D) (E=A+B-C-D) 1, ,131 36

37 TIMB: Profit After Tax Another quarter of underwriting profits Profit After Tax (RM mil) % % 19.3 Commentary Profit after tax decreased QoQ mainly due to lower investment income, particularly in realised gain on sale of investment and interest income. Profit after tax increased YoY mainly due to balanced portfolio with more profitable segments of non-motor business resulted in lower claims and net fees & commissions Q Q 2013 YTD 2012 YTD

38 TIMB: Investment & Other Income YoY decrease reflecting minimal equity holding from which to realise gains Investment & Other 1 Income (RM mil) Portfolio Mix -27.4% Portfolio Mix As at 30 Sep % Equity securities 1.0% Loans 0.1% Wholesale fund 12.2% Debt securities 28.2% Deposits with FI 43.7% Q Q 2013 YTD 2012 YTD 2013 Investment Yield # 1.1% * 0.6% * 2.9% 2.6% 3Q Q 2013 YTD 2012 YTD Other includes realised gains & losses and other operating income * Investment yield for 3 months # Investment income (exclude rental income) / investment 38

39 Capital Expenditures and Indebtedness 1 Capital Expenditures From FY2009 up till 1Q2013, no material capital expenditure Planned capital expenditure FY : Purpose: Implementation of a new core insurance system and associated technology in TIMB Amount: Approximately RM10.0m Sources of funding: Cash flows from operation Indebtedness FY 2012 Indebtedness comprised of term loans from RHB Bank Berhad and CIMB Bank Berhad of up to RM160.0 million to finance acquisition of TIMB Group Interest payable at the prevailing cost of funds plus a margin. Following listing (Feb 20), debt 100% repaid Now Zero Gearing Source: TIH Group s MD&A discussion 39 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

40 Dividend Policy We target for a payout ratio of not less than 40% of our consolidated profit in each financial year beginning 2013 Our Company intends to adopt a policy of active capital management. We propose to pay dividends out of cash generated from our operations after setting aside the necessary funding for capital expenditure and working capital needs. As part of this policy, we target for a payout ratio of not less than 40% of our consolidated profit for the year under MFRS, in each financial year beginning 1 January 2013, subject to the confirmation of our Board and to any applicable law, licence and contractual obligations and provided that such distribution will not be detrimental to our Group s cash requirements, or to any plans approved by our Board. Source: TIH Group s MD&A discussion 40 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

41 5. Conclusion 41 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.

42 Conclusion Exclusive Relationship with AirAsia Experienced Management Team & Strong Shareholders Support Proven Business Model Attractive Industry Fundamentals (Insurance & Travel Lifestyle) Ability to Leverage Extensive Electronic Database 42 Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan.