ANNUAL GENERAL MEETING WHERE ARE WE HEADED? Antonio Huertas MAPFRE Chairman and CEO March 11, 2016
Strategic Plan 2016-2018 Regional Areas Three-year Strategic Commitments 2
The new strategy STRATEGIC PLAN 2016-2018 FOCUS ON PROFITABLE GROWTH Client orientation Digital transformation Excellence in technical management Culture and internal talent 3
Focus on profitable growth Client orientation Client Segmentation Peru and Portugal Global Client Experience Model NPS results 2016: 70% operations 4
Focus on profitable growth Digital transformation Global Digital Transformation Model + 200 projects Digital Direct Business Plan 5
Focus on profitable growth Excellence in technical management Global Operational Efficiency Model MAPFRE Service Providers Corporate Technology Platform 6
Focus on profitable growth Culture and internal talent Global Talent Management Project Performance evaluation Mobility Equal opportunities and social inclusion 7
Global macroeconomic environment Growing uncertainty IMF 2016 GDP growth forecast: +3.5% Slowdown in China Fall in the price of oil Overreaction in markets 8
Opportunities for our business IBERIA Spain 2016 GDP growth: 2.7% Lower unemployment rate Greater domestic consumption Easier access to credit Reactivation of the real estate market Increase in number of new car registrations Buoyancy of tourism Multichannel development Solvency II Scale Entrepreneurship and self-employment Largest distribution network in Spain 9
Business strategy IBERIA Client orientation Multichannel development Perceived quality Excellence in technical management New MAPFRE SPAIN Digital transformation: New Automobile, Home and Health rate calculators 10
Global macroeconomic environment LATIN AMERICA Economic uncertainty Impact of fall in commodity prices on region's economies Structural reforms Low penetration of insurance 11
LATAM NORTH Business development plans Development of Multichannel Distribution Model Digital and Telephone Business Client segmentation Mass Market Insurance and Microinsurance Business growth in Company client Internal management projects Improved technical management Operational efficiency, digitization and process automation Solvency II 12
Opportunities for our business LATAM SOUTH Multichannel distribution Investment in HR and professional development Unification of IT areas Consolidation of improvements in technical management Process and operation automation 13
Global macroeconomic environment BRAZIL Decline of GDP in 2015: -3.8% Interest rates inflation Rating cut Devaluation of Brazilian real Opportunities for insurance CONFIDENCE IN THE RECOVERY 14
Opportunities for our business BRAZIL MAPFRE Network and Channels Penetration of Banco do Brasil Channel Development of HEALTH area Savings insurance Internal management projects Reduction of Contact Centers Management efficiency Insurance-Assistance synergies Resource optimization Company simplification 15
Global macroeconomic environment NORTH AMERICA GDP +2.4% in 2015 Controlled inflation 2016 GDP forecast: +2.6% Return to profitability for our activities 16
Business opportunities NORTH AMERICA Consolidation New Regional Structure 1 2 3 4 Profitability in Massachussetts Multichannel Distribution Digital Channel Automobile VERTI 2017 Joint USA/Mexico plan Life-risk USA Life Puerto Rico 5 6 7 Boost Assistance businesses 17
Global macroeconomic environment EMEA 2016 GDP forecast: +1.7% Depreciation of euro ECB policies 18
Opportunities for our business EMEA Multichannel distribution in Turkey Profitable growth: Turkey, Germany and Italy Review ASISTENCIA positioning Direct Line Italy and Germany: Rebranding to VERTI GLOBAL RISKS 19
Global macroeconomic environment APAC 2016 GDP forecast: +5.5% Slowdown in China Strong growth in insurance industry: Automobile insurance in China 2015: +16% Online distribution: +65% 20
Opportunities for our business APAC Digital Automobile Insurance project in Shandong PREMINEN comparison sites agreement CESVICHINA RE in China Development of ASISTENCIA business 21
Other business units MAPFRE RE One of the world's top reinsurance companies 19 offices Digitization of operations Management of Group's reinsurance coverage 22
Other business units MAPFRE GLOBAL RISKS One of the main global risks reinsurers Leader in Spain and Latin America New technology platform Specialty lines in London 23
Other business units MAPFRE ASISTENCIA Solid growth in USA 2 nd largest assistance company in Mexico Brazil, with BB MAPFRE INSUREANDGO 24
New Projects MAPFRE AM: Asset Management Global management of MAPFRE investments Management of third-party assets 25
New Projects STUDIES SERVICE Studies and research on insurance Macroeconomic and financial analysis Regulatory trends 26
Main strategic objectives for the next three years 1 FINANCIAL Creation of sustainable value for shareholders 31,000 million euros in revenues by 2018 Average ROE >11% Dividend yield around 5% Payout of 50-65% 27
Main strategic objectives for the next three years 2 CLIENT ORIENTATION Measurement perceived quality NPS in 80% Non-Life private premiums business 70% business lines: NPS > competitors Market share Improvement in 75% of Non-Life business Life and Pensions distribution 28
Main strategic objectives for the next three years 3 DIGITAL TRANSFORMATION Increase of 30% in digital transactions Increase of 50% in digital business: MAPFRE VERTI INSUREANDGO 29
Main strategic objectives for the next three years 4 EXCELLENCE IN TECHNICAL AND OPERATIONAL MANAGEMENT Group Combined Ratio <96% Spain: 96% Brazil 92% USA: 98% Expense ratio <28% Cost savings 2016-2018: 150 million euros Provider management: 60% of assignments automated 30
Main strategic objectives for the next three years 5 CULTURE AND TALENT Satisfaction Rate GPTW: >80% Gender equality 40% of management levels occupied by women 2% of workforce: people with disabilities Occupational and geographic mobility: 10% of workforce annually 31
Social Action Culture Health Promotion Accident Prevention and Road Safety Insurance and Social Protection 2015: 650 activities in 30 countries 17 million beneficiaries 32
Inclusion of vulnerable groups in labor market 1,500 people in three years VOLUNTEERING 765 activities in 23 countries 4,400 employees 33
A business Group that is socially responsible and committed to our environment, our clients and our entire organization 34
Sustainability Plan 2016-2018 A company that is... Ethical, with values of solidarity Innovative Transparent and committed 35
Active Transparency Plan Transparency is the best way to develop TRUST 36
Thank you