1. JORDAN BAGAN | JANE VASYLYSYNA| NICHOLAS COMO | NATALIA CHILES PEMCO A LITTLE DIFFERENT CSR

2. OBJECTIVE WHAT TYPE OF CSR STRATEGY SHOULD PEMCO IMPLEMENT THAT LEVERAGES THE PEMCO BRAND TO BUILD VALUE Overview | Analysis | Strategy | Implementation | Recap

3. OUR GOALS BE A LITTLE DIFFERENT continue to drive change through personal connections BE COURAGEOUS CSR LEADERS become CSR leaders instead of followers LEVERAGE BRAND bring CSR incentives and brand together Overview | Analysis | Strategy | Implementation | Recap

4. UNDERSTANDING WHAT’S IMPORTANT

5. THE MARKET Overview | Analysis | Strategy | Implementation | Recap

6. THE BACKGROUND Offices in Washington and Oregon 520 employees 114 partners 400,000 policies between 204,000 households Overview | Analysis | Strategy | Implementation | Recap

7. THE PROFILES Overview | Analysis | Strategy | Implementation | Recap

8. WHAT’S IMPORTANT Owners EPS Share Price Revenues Positive external feedback Insurance Co-op Movement of information Translatable into products Ensuring alignment Community Investment from companies Assistance with goals Betterment of society Strong relationships Overview | Analysis | Strategy | Implementation | Recap

9. COURAGEOUS STRATEGIES THAT ARE A LITTLE DIFFERENT

10. STRATEGIES Personal Health, Safety, Youth and Education Education to help build a brighter future Employee Engagement The true drivers of PEMCO CSR Customer Engagement CSR to leverage and promote brand; while, making a difference Overview | Analysis | Strategy | Implementation | Recap

11. A LITTLE DIFFERENT Personal Health, Safety, Youth and Education Grant and scholarship program Increasing volunteer hours Youth mentorship and development program Sponsor education/after school programs Address multiple issues Reach expansion Addresses the pillars Safe strategy – proof of concept Costly May reduce impact in other areas Limits employee engagement No real change Overview | Analysis | Strategy | Implementation | Recap

12. A LITTLE DIFFERENT Employee engagement Increasing volunteer hours Youth mentorship program Employee grants for community programs Building off existing programs Increases engagement Employee leadership and culture contribution Increase employee satisfaction May not align with brand goals Increased cost and constraints Overview | Analysis | Strategy | Implementation | Recap

13. A LITTLE DIFFERENT New investment opportunities Spread awareness Word-of-mouth marketing Spread brand image Costly No guarantee of buy-in Customer engagement Giving out dividends to customers Referral program Donating on your behalf Overview | Analysis | Strategy | Implementation | Recap

14. STRATEGIES Personal Health, Safety, Youth and Education Education to help build a brighter future Employee Engagement The true drivers of PEMCO CSR Customer Engagement CSR to leverage and promote brand; while, making a difference Overview | Analysis | Strategy | Implementation | Recap

15. RESPONSIBLE IMPLEMENTATION BUILT WITH GOALS IN MIND

16. IMPLEMENTATION Overview | Analysis | Strategy | Implementation | Recap Planning Stage: Internal Leadership Summit (2m) Host and Empower Employees at Summit (1m) Collect employee feedback (1m) Implement employee community grants (3m) Prepare youth mentorship program (3m) Implement pilot program (3m) Community Metrics (1m) Youth feedback (1m) Quarter OneQuarter TwoQuarter FourQuarter Three Employee Engagement

17. IMPLEMENTATION Overview | Analysis | Strategy | Implementation | Recap Develop a dividend return structure based on focus group research and given feasibility at time of launch (3m) Issue dividends (3m) Collect stories of those receiving dividends. Use for brand promotion “Celebrate the Differences”(on-going) Add to community metrics (1m) Quarter OneQuarter TwoQuarter FourQuarter Three Customer Engagement Develop referral program (3m) Pilot referral program (5m) Evaluate referral program (1m)

18. CELEBRATE THE DIFFERENCES

19. Overview | Analysis | Strategy | Implementation | Recap IMPLEMENTATION How PEMCO’s Referrals are different It’s a conversation. You’re out with your friend for coffee and surprisingly enough you’re talking about how happy your are with your PEMCO insurance. When you refer a friend to PEMCO, we donate $25 to a local charity of your choosing and your friend gets another $25 to donate to a local charity of their choice. It’s a win-win

20. THE IMPACT 2 - 6 Positive reviews get 56% of consumers to trust a business Of key purchasing influence is word-of- mouth Customers willingness to give referral if direct incentive or reward is involved Overview | Analysis | Strategy | Implementation | Recap 74% >50%

21. THE IMPACT Overview | Analysis | Strategy | Implementation | Recap Through a referral program we can impact 450 local charities 50 empowered employees must reach at least 10 community members 500 COMMUNITY MEMBERS IMPACTED 25 Enrolled in Youth Leadership Increased engagement from millennials

22. THE WHAT IFS Overview | Analysis | Strategy | Implementation | Recap Employee Engagement Rejection Identify and utilize trend setters in the workplace Low Youth Leadership Turnout Keep the program flexible Utilize feedback from pilot to determine demand Referral Program Rejection Reevaluate incentivesCreate feedback channels for consumers to understand the shortcomings Marketing Campaign Failure

23. THE RECAP Overview | Analysis | Strategy | Implementation | Recap Be Different Be Courageous Leverage Brand Personal Health, Safety, Youth and Education Employee Engagement Customer Engagement Employee and Customer Engagement 520 empowered employees 5200 community members reached 450 local charities impacted 3 Goals + 3 Strategies + 2 Implementations = PEMCO CSR

24. Question & Answers

25. Appendix Objective Goals The Market The Background The Profiles What’s Important Strategies PYE Employee Engagement Customer Engagement Strategies Recap Employee Engagement Implementation Customer Engagement Implementation Celebrate the Differences New Ad Word-of-mouth Impact Necessary reach What’s Ifs Recap Suitability Acceptability Feasibility Millennials Media Engagement Millennials Donations Millennials Marketing Days of service infographic Millennials Giving Employee company preferences Old vs. New consumers

26. SUITABILITY Overview | Analysis | Strategy | Implementation | Recap OptionProConRank PYE Address multiple issuesCostly Reach expansion May reduce impact in other areas Limits employee engagement Employee engagement Building off existing programs May not align with brand goals 1 Increases engagement Customer engagement New investment opportunities Customers may not want to donate 1 Spread awarenessMisleading profiles Attract new customers through word-of-mouth marketing

27. ACCEPTABILITY Overview | Analysis | Strategy | Implementation | Recap OptionProConRank PYE Addresses the pillarsNo real change 1 Safe strategy Employee engagement Increase employee satisfaction Employee vs. PEMCO recognition 1 Address multiple issues Increased cost and constraints Employee leadership and culture contribution Customer engagement Increased involvementCostly 1 Word-of-mouth marketingRequires research Spread brand image

28. FEASIBILITY Overview | Analysis | Strategy | Implementation | Recap OptionProConRank PYE People already in placeSmaller cost 2 Resources already in place Benchmarking Employee engagement Already happeningMid cost 1 Resources can be obtained Customer engagement Resources can be obtainedHigher cost 1 People may be obtained