Health Insurance in KSA Bupa Arabia Perspective May 2015

KSA Health Insurance Industry: Five Phases Pre-Enforcement (pre-2006) Rush for Growth and Capacity Building (2006 – 2011) Market Restructuring (2011 - 2014) Price Adjustment and Innovation (2014 – 2015) The Future: Continued Growth and Regulatory Change (post 2015)

KSA Health Insurance Industry: Pre-Enforcement Lives Covered Saudi Health Insurance Market Bupa Arabia KSA Market Bupa Arabia 2m 250k Until the mid-1990s, insurance was banned in KSA However, 100 companies were operating via overseas offices Private Medical Insurance was not a priority, as all Saudis had access to free healthcare In 1999, a Royal Decree mandated PMI for non-Saudis and created a governing body for health insurance, the Council of Cooperative Health Insurance (CCHI) However, growth remained low BUPA Middle East was incorporated in 1997 as a JV between Bupa Group and Nazer to serve the Saudi health insurance market The company focused on bringing together the international health insurance and expertise of the Bupa Group with the knowledge of starting up new businesses in Saudi Arabia of the Nazer Group 2006

KSA Health Insurance Industry: Rush for Growth Lives Covered Saudi Health Insurance Market Bupa Arabia KSA Market Bupa Arabia 2m 250k In 2006, CCHI worked with the Ministry of Interior to link medical insurance to residential and work permits making it easier to enforce the mandate Growth in the market accelerated We focused on building the capabilities to deliver great products and a fantastic customer experience This meant creating an operational structure, consistent with the Bupa way: Distribution Branding Provider infrastructure Customer service call center IT infrastructure Critically, it also meant the creation of a world-class team: Recruiting Development of people policies Training 2006 8m 1.2m 2011

KSA Health Insurance Industry: Market Restructuring Lives Covered Saudi Health Insurance Market Bupa Arabia KSA Market Bupa Arabia 2m 250k In this period, the supply of healthcare facilities did not kept pace with the growth of health insurance. This is put upward pressure on medical costs At the same time, the health insurance market underwent a “price war” with many competitors charging prices below medical costs Growth in the market continues at a significant pace We continued to focus on our core advantages: our healthcare credentials, our excellent customer service and our relationship with corporates throughout the Kingdom Bupa Arabia launched our “7 pillar strategy” which focused on executional excellence across the business: Expand Distribution Establish Healthcare Leadership Better Manage Medical Costs Improve Branding Improve Organisational Capability and Capacity 2006 8m 1.2m 2011 10m 2.5m 2014

Bupa Arabia “7 Pillar Strategy” Enhance Our Proposition: Expand Distribution. To develop a multi-channel strategy that ensures we are more easily accessible Reinforce our Service Advantages. To maintain lead over competitors in customer service Establish Healthcare Leadership. To establish new sources of differentiation, leveraging our healthcare focus Increase Our Efficiency Better Manage Medical Costs. To drive significant improvements to medical costs and customer service Invest in Key Enablers Improve Branding. To increase branding activity to support differentiation and growth. Improve Organisational Capability and Capacity. To ensure we continue to have the right capability and capacity to succeed. Increase Lobbying for More Effective Enforcement. To continue working with government to address the most pressing health issues in KSA 5. Improve Branding 7. Improve Organisational Capability and Capacity Invest in Key Enablers 1. Expand Distribution 3. Begin to Establish Healthcare Leadership Enhance Our Proposition 4. Better Manage Medical Costs Increase Efficiency 6. Work with Government to Improve Healthcare in KSA 2. Reinforce Our Service Differentiation

KSA Health Insurance Industry: Innovation Lives Covered Saudi Health Insurance Market Bupa Arabia KSA Market Bupa Arabia 2m 250k Thanks to government intervention that prevented pricing health insurance below risk cost, the extreme price pressure in the private medical insurance market abated from the first quarter of 2013 Without the ability to drive very low pricing, many of the industry’s smaller players (who are not differentiated) have begun to struggle We are focused on moving from “Health Insurer” to “Healthcare Partner” through innovativion: Up Your Service Passion: step change in service mindset and excellence Breakthrough in healthcare services Quality management systems An improved hospital experience We believe that having great talent and an “amazing culture” are critical to our success. We strive to: Be leaders in all we do Create an innovative and caring culture Be loved by customers Have amazing talent Consistently act according to our values 2006 8m 1.2m 2011 10m 2.5m 2014 10m 2.7m Q1 2015

Bupa Arabia: Innovative Strategy Bupa Arabia is the greatest healthcare company in the Arab world.  It is designed to deliver on its purpose. When it touches you, whether you are an employee, a customer or a community member, you live a longer, healthier, happier life.  We have written history. People love working at Bupa because of our amazing culture A healthcare partner to millions more people Extraordinary business performance Health insurance that leads the market in unlocking access to high- quality healthcare Provision (e.g., clinics and hospitals) sufficient to shift the industry to a patient-centric, outcomes-focussed paradigm Partnerships to tackle the most pressing healthcare needs We are leaders in all we do We have an innovative and caring culture We are loved by customers We have amazing talent We consistently act according to our values 10 million total customers 10 billion riyals in revenue

KSA Health Insurance Industry: The Future Regulatory change (or more firmly enforcing existing regulations) will lead to dramatic improvements in the quality of care in Saudi Arabia This should include: Increasing provision (hospitals and clinics) capacity by allowing foreign and health insurer ownership of provision Developing Public / Private Partnerships in provision, specifically outpatient services, to bring private sector expertise and experience Better enforcing the existing mandate for private health insurance to ensure there is no improper use of the public system Expanding the health insurance mandate to a broader spectrum of the Saudi population, allowing them to access the quality of private provision and allowing the government to increasingly focus on regulation, not healthcare delivery

Bupa Arabia Across the Phases Innovation Market Restructuring Rush for Growth Pre-Enforcement 10

Thank You 11