Overview of Dai-ichi Life Vietnam (DLVN)

13th September 2016

General Director, Tran Dinh Quan

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Contents

Ⅰ. Vietnamese Market

Ⅱ. About DLVN

Ⅲ. DLVN – Management Philosophy

Ⅰ. Vietnamese Market

73

4.8%6.9%

0%

5%

10%

15%

20%

25%

30%

2008 2009 2010 2011 2012 2013 2014 2015 2016

CPI (YoY)1 Month Deposit Rate10-year Government Bond Yield

2.4%

74

(1) Vietnam Macro Economy

GDP Growth Rate CPI / Interest Rates

(Source: General Statistics Office of Vietnam, Bloomberg, DLVN)

Progress of TPP and deregulation will certainly facilitate the economic growth and FDI

Structural reform priorities are privatization, banking sector restructuring, etcLife insurance market is expected to grow further thanks to the middle class expansion

10-year government bond yield sharply dropped from 9% to 6% level in 2014, and then the yield stays at around 7%

Steady stream of FDI contributes financial market stability in Vietnam

GDP stays at 5-6% level. Economic outlook has improved, although it is indispensable for Vietnam to implement the structural reforms to accelerate its economic growth.Inflation is coming back due to the oil price rebound, while its level is still lower than the government forecast (3%).

E2016、E2017：IMF Estimates, as of July 20162016 GDP Government Target is 6.7％

Ⅰ. Vietnamese Market

0 3000 6000 9000 12000- 3,000 6,000 9,000 12,000 025005000750010000

0-45-910-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980+

Premium Income Penetration Premium Income/GDP

Vietnam 984mil USD 92mil 6.2% 0.7%

Thailand 13,297mil USD 68mil N/A 3.6%Japan 371,588mil USD 127mil 90%+ 8.4%

(Source: Reports of each countries of Insurance Institutions, EIU, Swiss Re)

Population

India 55,299mil USD 1,295mil N/A 2.6%

Although market size (Premium Income) is still small, continuous growth can be expected based on population size & penetration level.

(2014)

Vietnam

（2010）

Japan

(1970)Japan(2010)

AverageAge31y

AverageAge30y

Population Pyramid

75

AverageAge44y

Indonesia 10,159mil USD 254mil 5.8% 1.1%

Ⅰ. Vietnamese Market(2) Life Insurance Market – Growth Potential

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2 3 4 5

Taiwan

Hong Kong

JapanUKKorea

FranceSingapore

AustralliaCanadaUSAGermany

New Zealand

ThailandMalaysia

ChinaIndia

IndonesiaVietnam

Philippine

100 1,000 10,000 100,000

Premium

Income / G

DP

GDP per Capita(USD)

Although Premium Income/GDP of Vietnam Insurance Market is low score, Vietnam Insurance Market has a high potential for development with growth of their Economics and Importance of Life Insurance.

(Source: Data from Swiss Re)

◆ASIA

◆ASEAN

▲EUROPE

■NORTH AMERICA●OCEANIA

Mature Phase

ASIA

ASIA

NA・EUROPE

OCEANIA

76

Ⅰ. Vietnamese Market(3) Life insurance market situation with other countries

Growth Phase

Dawning Phase

As of 2015

4.4%

5.0%

5.7%

6.3%

7.2%7.3%

8.0%8.0%

9.0%

9.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1996 ： State-owned life insurer “Bao Viet” commenced the business. 1999 ～ ： Opened to foreign insurers. In 2015, 17 life insurers (2 domestic + 15 foreign insurers).New & competitive market. Initially developed by Western life insurers.

Life Insurance Market Growth in Vietnam

(Source: Association of Vietnamese Insurers)

7 14 16 17117 1111 13 17No, of

Companies

Market Share in 2015Company Establishment Share

1 Prudential (UK) 1999 29.1%

2 Bao Viet 1996 26.6%

3 Manulife (Canada) 1999 11.8%

4Dai-ichi Life Vietnam(Japan)

2007(1999) 9.3%

5 AIA(Hong Kong) 2000 9.1%

6 ACE Life (USA) 2005 4.3%

7 PVI Sunlife(VN・Canada） 2013 2.2%

8 Generali(Italiy） 2011 2.0%

9 Hanwha Life(Korea) 2008 1.9%

10 Prevoir (France) 2005 1.4%

11 VietinAviva (VN･UK) 2012 1.1%

12 Cathay Life (Taiwan) 2008 0.5%

13 VCLI(VN･France) 2008 0.2%

14 BIDV Metlife(VN・USA） 2014 0.2%

15 Fubon Life(Taiwan) 2011 0.1%

16 G.Eastern Life (Singapore)

2008 0.1%

17 Phu Hung 2013 0.0%

First Year PremiumRenewal Year Premium

Premium Income(Bil VND)

MarketShare

DLVN Market Share*

Market CAGR (2006-2015) First Year Premium: +29.5%Premium Income: +18.1%

DLVN entered in Vietnam in 200777

Ⅰ. Vietnamese Market(4) Life Insurance Market – History & Our Position

*Premium Income base

* Bancassurance sales = around 6%

Agency Channel94%

(estimation)

* 2015 New Business (First Year Premium) base* 1 JPY = 185 VND (1 VND = 0.0054 JPY)

Mainly through Agency channel is selling saving/investment-oriented products.Alternative Channel (e.g. Bancassurance) has been growing rapidly.

Distribution Channels Products

Tied Agency is a main distribution channel

Bancassurance channel is now rapidly developing in Vietnam 13,265 Bil VND

(71Bil JPY)

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Ⅰ. Vietnamese Market(5) Life Insurance Market – Distribution Channels & Products

(Source: Association of Vietnamese Insurers)

Ⅱ. About DLVN

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155 locationsNation wide

Head Officein Ho Chi Minh City

Acquisition 18th January, 2007

Head Office Ho Chi Minh City, Vietnam

Chairman Mr. Takashi Fujii

General Director Mr. Tran Dinh Quan

Number of Employees (*) 739

Number of Agencies(*) About 50,000

Number of Sales Offices (*) 155

Charter Capital (*) 1,141bil VND (6.1bil JPY)

Assets (*) 7,652bil VND (41.3bil JPY)

Premium Income(*) 3,539bil VND (19.1bil JPY)

Number of Policies in Force (*) About 380,000

Profit after Tax(*) 102bil VND (550mil JPY)

Solvency (*) 231%

1VND=0.0054JPY （End of Dec 2015）80

Ⅱ. About DLVN(1) Overview of DLVN

(*1)・・ End of Dec 2015

End-July 2016, 1,767bil VND (9.5bil JPY)

*Regulation requirement : ≧100%

End-July 2016, 170 sales offices.

473 585 744 995 1,166

1,479 1,857

2,546

3,539

124%127%

134%

117%

127% 126%

137%139%

100%

110%

120%

130%

140%

150%

-

1,000

2,000

3,000

4,000

5,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

FYP RYP Premium Income Growth (YoY)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018<Phase 1>Enhance Business Base

<Phase 2>Enhance Sales &Enhance Financial Base

<Phase 3>Sustainable Premium IncomeGrowth & Improve Profitability

<Phase 4>Improve Market Position for Sustainable EV Growth

Diversification Balance with 2 main products + Launch new productsBalance with 2 main products + Launch new products

Expand Sales Network Agency + Alternative ChannelAgency + Alternative Channel

Products

Channel

(Bil VND)

Educational Insurance

Agency

（2 main products UL: Universal Life, VE: Variable Endowment）

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Ⅱ. About DLVN(2) DLVN Strategy

Premium Income Growth Rate(YoY)Agency

SustainableGrowth

AlternativeChannel

Development

FYP TOP3By 2018

factors 2010 2015 GrowthActive FCs* (month/Avg) 2,243 4,491 200%

PoliciesIn-force 177,845 366,999 206%

Sales Offices 55 153 278%

New Business Renewal Year Premium

-

500

1,000

1,500

2,000

2,500

2007 2008 2009 2010 2011 2012 2013 2014 2015

*Active FCs : FCs(Financial Consultant) who sell more than 1 Insurance policy within 1 month.

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Ⅱ. About DLVN(3) Sales Channels – Agency Channel

Agency Channel is the current Main Engine of DLVN topline growth.

(Bil VND)

Introduced Customer Loyalty Program from 2013 (Includes additional Points for customers’ voluntarily renewal premium payment.)

Customer SeminarDai-ichi Financial Advisory Center in HCM & Ha NoiSales Method

*MDRT: Million Dollar Round TableOrganize Seminar regularly to let customers understand well about risks of life, family money management, and necessity of life insurance product.

Enhance Individual sales, and increase MDRT* qualifiers.

<Others Distribution>

Exclusive

VN Post

Mocap

Others

Corporate Agents, Brokers, etc

<Bancassurance>

Exclusive

HD Bank

Non Exclusive

ACB

OCB

VP Bank

Sacombank

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Ⅱ. About DLVN(3) Sales Channels – Alternative Distribution

Developing Alternative Channel via collaboration with several banks, VN Post & other distributions.

1.4% 1.1% 1.3% 1.6%

3.9%

9.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

-

10.00

20.00

30.00

40.00

50.00

2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2

First Year Premium

Contribution for First Year Premium(Bil VND)

2015 Full Year: 1% Contribution 2016 1st Half : 7% Contribution

Aim to contribute 10% of First Year Premium in end 2016

Current Partners

New Business

★ Started VN Post

Sales(Mar. 2016)

MOU Signing Ceremony

Japan Post Insurance(Kampo), Dai-ichi Life Japan, and Vietnam Post have signed the memorandum with regard to their trilateral collaboration in providing life insurance services in Vietnam on 19th April 2016.

Kampo life will share to DLVN and VN Post their Know-how of Life Insurances sales through the Post distribution.

Already had several meetings among Dai-ichi Life, Kampo, and DLVN about cooperation in Vietnam.

Ⅲ. DLVN – Management Philosophy

84

Through the long term commitment from Dai-ichi Life Japan, DLVN has achieved higher growth than the market average.

85

Ⅲ. DLVN – Management Philosophy(1) Our Management Philosophy

Dai-ichi Life Japan

Dai-ichi Life Vietnam

“ Gắn bó dài lâu ”Same Corporate Mission一生涯のパートナーBy your side, for life

Long-term Commitment

- Committed local management team(only two CEOs since the foundation of 2007)

- Strong capital supports for the above market growth

(= Lifetime Partner)

Group synergy- Respecting each other, Learning from each

other, Growing together(e.g.) Providing DLVN agency business experiences to other DL group companies to generate value creation synergies

86

DLVN has been committed to various CSR activities to make contributions to Vietnamese society.DLVN will establish a CSR Foundation for long-term and well-planned CSR activities throughout the country.

Donation Ceremony for Eye operations (2016)

Million bricks for a happy life (2015) Donation to Kumamoto (2016)

Through this Activity, DLVN received 2015 Asia Insurance Industry Award in Singapore.

DLVN has contributed to Donation for Eye Operation since 2008 with Dai-ichi Life Japan.

DLVN employees and Agencies voluntarily contributed to Kumamoto.

Ⅲ. DLVN – Management Philosophy(2) Our CSR Activities

87

DLVN has been committed to various CSR activities to make contributions to Vietnamese society.DLVN will establish a CSR Foundation for long-term and well-planned CSR activities throughout the country.

Ⅲ. DLVN – Management Philosophy(2) Our CSR Activities

Received “Prime Minister Award”Since established, DLVN have conducted CSR activities, and spending a total of more than 15 billion Vietnamese dong (as of 30/06/2016).DLVN received the “Prime Minister Award” in 2014, because these activities was esteemed to have contributed to the growth of Vietnam.

THANK YOU

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