Vienna Insurance Group Financing of Investments 5th Vienna Economic Forum: November 10th, 2008 Vienna Insurance Group Financing of Investments Franz Kosyna, Member of the Executive Board of Vienna Insurance Group D/1

Vienna Insurance Group Operating in 23 countries of Central and Eastern Europe Largest Insurance Group in Central- and Eastern Europe* No other Insurance Group has a higher CEE-share of premiums Around 23,000 employees * VIG-definition CEE: CZ, SK, PL, RO, BG, HR, HU D/1

Think globally – act locally Since more than 180 years successful in Austria – More than 15 years of success in CEE Continuous expansion by organic growth and through acquisitions Local management Exchange of know-how within the Group Multi-brand policy Multi-channel distribution Vienna Insurance Group reinvests profits earned in a CEE country within that country D/1

Investments D/1

VIG follows a long-term and selective strategy VIG Investment Strategy VIG follows a long-term and selective strategy Long term – engagements Stakes in insurance companies (national and international) to expand business Stakes in non-insurance companies to support insurance business development (e.g. private hospitals, laboratories, hotels) Selective engagements Selective market entrance in CEE regions and expansion in already entered markets through acquisitions and organic growth D/1

CEE Region Offers Multiple Growth Insurance Density (USD) Versicherungsd Insurance BIP Wachstum GDP Growth urchdringung Penetration 2007 2007 – – 2009F 2009F 2007 2007 1 1 CEE CEE 2 2 5,0% 5,0% 3,3% 3,3% Ö Ö sterreich sterreich 2,3% 2,3% 5,8% 5,8% EU 15 EU 15 1,8% 1,8% 9,2% 9,2% Spain population: 10mn GDP per Capita (USD) 1 Premiums in % of GDP. 2 Weighted average for CEE. CEE is defined as Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Ukraine.

Stepwise expansion to the family of Vienna Insurance Group

Vienna Insurance Group Vienna Insurance Group – Number 1 in CEE Top market positions in the countries Vienna Insurance Group Poland: 4. position Czech Rep.: 2. Position Ukraine: 2. position MTPL Austria: 1. position Slovakia: 2. position motor vehicle ins.: 1. position Bulgaria: 1. position Romania: 1. position Georgia: 1. position Croatia: 4. position 2. position Life Albania: 2. position Serbia: 4. position 1. position Life Core markets

Investment example D/1

Transaction Erste Bank Acquisition of the Erste Group insurance companies Enormous customer potential Expansion of market position in Central and Eastern Europe General Distribution Agreement between Erste Group and the Vienna Insurance Group D/1

Issue of a hybrid bonds with an volume Financing Successful Capital Increase 2008: largest ever share offering by an insurance Group on the Vienna Stock Exchange. Placement of 23 million shares Volume of the capital increase: approx. EUR 1.14 billion Issue of a hybrid bonds with an volume of EUR 250 million to strengthen equity capital to finance acquisitions in Central and Eastern Europe D/1

Thank you for your attention! 12