Presentation to Analysts & Press - Great Eastern Life

2 nd Quarter Financial Resultsended June 30, 2003Great Eastern Holdings LimitedPresentation ExhibitsAugust 4, 2003

EXECUTIVE SUMMARYPerformanceimprovementdespite pooreconomicconditions• Despite sluggish & deteriorated economies, and slowed industry growth, GreatEastern (GE) improved quarterly performance over last quarter and year agoA stronger P&L– PAT increased 112% and 41% respectively– EPS increased 100% and 38% respectively– Life Insurance pre-tax profits increased142% and 57% respectivelyA stronger balance sheet– Life fund surplus increased 31% and 28% over Mar03 and Dec02 respectively– NAV/share improved 6% and 8% over Mar03 and Dec02 respectivelyContinued focus onpremium salesneeded to maintainmarket leadership;risks and uncertaintiesahead• While performance has improved, challenges remain for GE to drive premium salesand maintain market leadership– Despite better quarterly performance, half-yearly new business premium salesremain below year ago results– Although Malaysia continues its market leadership, Singapore would need to regainmarket grounds lost in 1 st quarter• High equity holding implies certain risks to Life Fund in both Singapore and MalaysiaStrategies set for 03began to achieveresults, and willcontinue to driveperformance• The 2003 strategies highlighted last year began to achieve results– Distribution strategy focused on strengthening capability and capacity– Life Planning, a new paradigm in insurance to plan life’s main priorities, was wellreceived, and it differentiated GE from competition– Customer insights enabled better product targeting; CRM roadmap in place to buildGE as a customer centric organisation1

DESPITE POOR GLOBAL ECONOMY, DETERIORATED SINGAPOREECONOMY AND SLOWED INSURANCE INDUSTRY….Sluggish key economies…GDP percent change on yearago, Q2 2003+ deteriorated SG GDPPercent change on yearago, 2003Slowed Insurance IndustryTotal Weighted Premium,SGD Millions1.93.9260-32%1.61780.60.0US Japan Eurozone-4.32003F Q1 Q21Q021Q03Source: The Economist; Monetary Authority of Singapore; Life Insurance Association2

GE PEFORMANCE IMPROVED, WITH PAT SIGNIFICANTLY ABOVE Q1,2Q02 AND Q202Quarterly PAT improved overlast quarterSGD millionsQuarterly PAT improvedover year agoSGD millionsHalf-yearly PAT improvedover year agoSGD millions112%85.226.941%60.485.226.9140.820.8*4%125.340.1MY38.4MY54.251.4MYSG24.515.658.3SG22.058.3SG65.8 73.9Q103Q203Q202Q2032Q022Q03* One-time asset disposal gain of SGD 20.8 million in Singapore3

EPS IMPROVED OVER LAST QUARTER AND YEAR AGOQuarterly EPS improvedover last quarterCents per share… and over year agoCents per sharewhile half-yearly EPSremains below year agoCents per share100%38%-10%18131830279Q103Q203Q202Q2032Q022Q034

LIFE INSURANCE PRE-TAX PROFIT, WHICH CONTRIBUTED 70% OFTOTAL PROFIT, IMPROVED OVER LAST QUARTER AND YEAR AGOQ2 Pre-tax profitSGD MillionsQ2 Pre-tax profit over last quarterPercent differenceQ2 Pre-tax profit over year agoPercent differencePAR21.410%14%Non-PAR51.9592%84%InvestmentLinked4.7-10%68%5

LIFE FUND SURPLUS (MARKED TO MARKET) INCREASED FROM MAR03AND DEC02Life fund surplus increased over31 March 2003SGD BillionsLife fund surplus increased over31 December 2002SGD Billions31% 28%2.33.02.43.031 Mar 03 30 Jun 0331 Dec 02 30 Jun 03Percent ofliability: 10.8%13.6% 11.3%13.6%6

NAV/SHARE IMPROVED FROM MAR03 AND DEC02Ratio8%6%3.46 3.533.7431 Dec 02 31 Mar 03 30 Jun 037

EXECUTIVE SUMMARYPerformanceimprovementdespite pooreconomicconditions• Despite sluggish & deteriorated economies, and slowed industry growth, GreatEastern (GE) improved quarterly performance over last quarter and year agoA stronger P&L– PAT increased 112% and 41% respectively– EPS increased 100% and 38% respectively– Life Insurance pre-tax profits increased142% and 57% respectivelyA stronger balance sheet– Life fund surplus increased 31% and 28% over Mar03 and Dec02 respectively– NAV/share improved 6% and 8% over Mar03 and Dec02 respectivelyContinued focus onpremium salesneeded to maintainmarket leadership;risks and uncertaintiesahead• While performance has improved, challenges remain for GE to drive premium salesand maintain market leadership– Despite better quarterly performance, half-yearly new business premium salesremain below year ago results– Although Malaysia continues its market leadership, Singapore would need to regainmarket grounds lost in 1 st quarter• High equity holdings implied certain risks to Life Fund in both Singapore and MalaysiaStrategies set for 03began to achieveresults, and willcontinue to driveperformance• The 2003 strategies highlighted last year began to achieve results– Distribution strategy focused on strengthening capability and capacity– Life Planning, a new paradigm in insurance to plan life’s main priorities, was wellreceived, and it differentiated GE from competition– Customer insights enabled better product targeting; CRM roadmap in place to buildGE as a customer centric organisation8

WHILE GROSS PREMIUM INCOME GREW IN SECOND QUARTER, IT ISSTILL BELOW YEAR AGO PERFORMANCEQuarterly premium improvedover last quarterSGD Billions… But below year agoperformanceSGD Billions-3%Half-yearly premium stillbelow year agoSGD Billions11%-15%0.971.081.11 1.082.422.05SinglePremium:SGD BQ103 Q203Q202 Q203 2Q02 2Q030.3 0.4 0.4 0.4 1.1 0.79

WHILE MALAYSIA MAINTAINED MARKET LEADERSHIP; CATCH UPREQUIRED FOR SINGAPORE TO REGAIN LOST GROUND IN Q1Malaysia maintained market leadershipMarket share* by Total Weighted PremiumPercentSingapore needs to regain lost groundMarket share* by Total Weighted PremiumPercentLost ground inregular premiummarket share19.6 19.925.223.42Q022Q03E2Q022Q03E* 2Q03 market share figures estimated10

HIGH EQUITIES HOLDINGS IMPLIES SOME RISKS, BUT THEY AREMANAGEDEquities as percentof total assetPercentEquities as percentof Non-Par FundPercentStress test on 30 June 2003indicates that• Singapore Life Fund can withstanda 32% dip in equity holdings243124• Malaysia Life Fund can withstand a63% dip in equity holdingsHigh equity holding in Non-Parimplies potential earnings impactdue to equities volatilitySingaporeMalaysiaSingapore &MalaysiaSGD 3.8B SGD 2.9BSGD 0.5B11

EXECUTIVE SUMMARYPerformanceimprovementdespite pooreconomicconditions• Despite sluggish & deteriorated economies, and slowed industry growth, GreatEastern (GE) improved quarterly performance over last quarter and year agoA stronger P&L– PAT increased 112% and 41% respectively– EPS increased 100% and 38% respectively– Life Insurance pre-tax profits increased142% and 57% respectivelyA stronger balance sheet– Life fund surplus increased 31% and 28% over Mar03 and Dec02 respectively– NAV/share improved 6% and 8% over Mar03 and Dec02 respectivelyContinued focus onpremium salesneeded to maintainmarket leadership;risks and uncertaintiesahead• While performance has improved, challenges remain for GE to drive premium salesand maintain market leadership– Despite better quarterly performance, half-yearly new business premium salesremain below year ago results– Although Malaysia continues its market leadership, Singapore would need to regainmarket grounds lost in 1 st quarter• High equity holding implies certain risks to Life Fund in both Singapore and MalaysiaStrategies set for 03began to achieveresults, and willcontinue to driveperformance• The 2003 strategies highlighted last year began to achieve results– Distribution strategy focused on strengthening capability and capacity– Life Planning, a new paradigm in insurance to plan life’s main priorities, was wellreceived, and it differentiated GE from competition– Customer insights enabled better product targeting; CRM roadmap in place to buildGE as a customer centric organisation12

WE EMBARKED ON GE’S 2003 STRATEGIES LAST YEAR1. Strengthen agency capability & capacity; build FAcompany2. Enhance a great brand2Q focus3. Develop customer insights to tailor services andproducts to different customer segments4. Drive costs efficiencies through shared services and ITintegration5. Make GE a great environment to attract, groom andretain talent6. Expand into the region13

1. DISTRIBUTION STRATEGY CENTERED ON BUILDING AGENCYCAPACITY AND CAPABILITY, AND FA COMPANYBuild agencycapacityRecruitment• Multi-channel recruiting– Corporate-led– Agency-led• New recruiting incentivesDistributionstrategyBuild agencycapabilityRetentionSales productionTraining• Focused retention of high performers throughrapid advancement programmes• Assistance programmes for underperformers• Formation of agency groups for sharedresources and learning• Life-planning centred training programmes– Certification based– Advancement based– Skills basedSet up FAcompanyStrengthenBancassurance• Closer interaction and align marketingstrategies with OCBC14

2. LIFE PLANNING: A NEW DISTINCT PARADIGM IN USING INSURANCETO PLAN LIFE’S PRIORITIES“Life planning is an innovative yet simple way ofhelping you achieve your goals and aspirations in life”A positive attitude on life and on planning toenforce “Life is Great” mantraAll en-compassing process, much morethan mere financial planningRefreshingly simple:Extracting the essence of planning down to• Protection• Investment• Education• Retirement15

3. CUSTOMER INSIGHTS ENABLED BETTER PRODUCT TARGETING; CRMROADMAP TO BUILD GE AS CUSTOMER CENTRIC ORGANISATIONCustomer insightsallows for accuratesegmenting…… leading tosegment-specificstrategiesA CRM roadmap towards customer centricorganisation in place to develop long termcapabilities with short term sales impact …Current valuePrioritycustomers• Product /offeringstrategies• Needs-basedsolutionsdevelopment• Channel strategiesStrategyProcesses /CapabilitiesPotential valueTechnologyOrganisation16

APPENDIX• FAQ and other material issues• Exhibits on key GE financial performance• Great Eastern Holdings Limited Quarterly Report17

FAQ AND OTHER MATERIAL ISSUES• Environmental challenge– Low interest rates– Post-SARs, critical year issues• Financial Advisers Act• Divestment of Malaysian Operations• RBC impact & dividend policy• CPF Funds• Regional expansion18

APPENDIX• FAQ and other material issues• Exhibits on key GE financial performance• Great Eastern Holdings Limited Quarterly Report19

2Q03 GROUP GROSS PROFIT (PRE-TAX): NEAR-EVEN SPLIT BETWEENTWO COUNTRIES, INSURANCE FORMS BULK OF BUSINESSPercent of total100% = SGD 101MM SGD 172MMSGD 71MM12%Fee Income4% Investment36%Investment41%Malaysia96%Insurance52%Insurance59%SingaporeSingapore businessbreakdownBy CountryMalaysia businessbreakdown20

ASSET ALLOCATION (MARKED TO MARKET) REMAINS LARGELYCONSTANTPercent of totalSingaporeMalaysia100% = SGD 17.7B SGD 16.4B 100% = SGD 9.6B SGD 8.8BReal Est& OthersCash10 911 104 38 12Equities27 293130FI52 5257 5530 Jun 03 31 Dec 0230 Jun 03 31 Dec 0221

MANAGEMENT EXPENSE STABLISED EVEN AS NEW CORPORATEINITIATIVES WERE INTRODUCEDManagement expense ratioPercent2.46 2.443.022.772Q02 4Q02 1Q03 2Q0322

A SHIFT TOWARDS ANNUAL PREMIUM NEW BUSINESS (LIFE) INSINGAPORE; EQUAL MIX FOR MALAYSIASingapore annual premium newbusinessPercent of totalMalaysia annual premium newbusinessPercent of totalSinglepremium989295406052Annualpremium25356040482001 2002 2Q032001 2002 2Q03ElderShield23

APPENDIX• FAQ and other material issues• Exhibits on key GE financial performance• Great Eastern Holdings Limited Quarterly Report24