PZU’s investor relations

Meeting stringent information governance requirements for public companies and fulfilling information needs of different groups of stakeholders, the Management Board of PZU undertakes various investor relations activities aimed at improving transparency in the company and procuring equal access to information. Therefore, PZU has consistently applied the “Principles for PZU to Conduct its Information Policy for Capital Market Participants”.

PZU’s shareholder structure

According to current reports regarding the percentage of share capital and votes held by shareholders at the shareholder meeting, the sole shareholder controlling more than 5% of PZU’s stock as of 31 December 2019 was the State Treasury of the Republic of Poland (34.2%). In July 2019 Nationale-Nederlanden Otwarty Fundusz Emerytalny and Nationale Nederlanden Dobrowolny Fundusz Emerytalny reported that they had dropped below 5% of share capital and votes at the PZU shareholder meeting PZU’S SHARE CAPITAL AND SHAREHOLDERS.

According to a survey¹ carried out at the end of 2019, PZU’s shareholder structure was stable. The share of foreign investors increased 0.4 p.p. y/y to 35.4% at the expense of domestic investors, which was chiefly related to the decline in the share held by open-end pension funds (OFE). EQUITY AND BOND MARKET. The share held by retail investors remained at a similar level to the one seen in 2018, namely 7.5%.

PZU shareholder structure - main investor groups

Percentage of stocks held by North American investors continued to increase in 2019. At the end of 2019 it was 14.7%, i.e. up 1.5 p.p. y/y (vs. 5.1% in 2014).

Investors from the United Kingdom maintained the largest weight in PZU’s shareholders structure with a share of 18.1% of all stocks held by institutional investors (excluding the State Treasury of the Republic of Poland). Compared to 2018 funds from Norway and Sweden emerged in the community of investors with a shareholding of several percentage points.

Open-end pension funds and fund management companies in PZU’s shareholder composition in 2015-2019

North American investors 2015-2019

Composition of PZU’s shareholders by geography

Communication with capital market participants using digital tools

In 2019, PZU continued to hold regular meetings attended by representatives of its Management Board during which it published its quarterly results. The strategy update was an additional event. All corporate events held with capital market participants in mind were transmitted live in the form of a webcast (with simultaneous translation into English). Recordings of these meetings are available on PZU’s website in the investor relations section at https://www.pzu.pl/relacje-inwestorskie/do-pobrania.

15 MARCH

Execution of the #newPZU 2018 strategy

14 MAY

Q1 2019 report

24 MAY

Ordinary Shareholder Meeting

29 AUGUST

Q2 2019 report

6 SEPTEMBER

Extraordinary Shareholder Meeting

14 NOVEMBER

Q3 2019 report

The most important events, achievements and plans were presented once again in the form of an online Annual Report at raportroczny2018.pzu.pl. Users have been provided with tools enabling a multi-directional analysis of corporate and macroeconomic events as well as financial results. This report includes interactive infographics, animations and video clips, which offer a succinct presentation of the PZU Group’s activity in 2018.

Activities targeting institutional investors

In 2019, PZU representatives participated in the following:

• 3 non-deal roadshows in New York, Paris and Frankfurt (2 in 2018);
• 16 international finance conferences attended by global institutional investors (14 in 2018);
• 4 conferences for institutional investors held in Warsaw (6 in 2018);

during which nearly 150 meetings with approximately 240 fund managers and analysts representing funds and asset management companies were held.

Moreover, in 2019 the number of face-to-face meetings and the number of investor meetings held with investors, especially international investors using remote means of communication in the company’s headquarters increased. PZU representatives took part in approximately 40 meetings and conference calls with more than 100 people representing asset management companies and in approximately 70 meetings and conference calls with analysts who issue recommendations for PZU’s stock.

Investment centers visited in 2019 (number of visits)

Activities addressed to retail investors

In 2019, PZU engaged in active dialogue with retail investors providing them with reliable and up-to-date information on PZU’s business, the insurance industry and its financial results. In this respect, PZU implemented both communication projects (e.g. the online report, a newsletter, a factsheet, mass mailing) and took active steps to enable direct contact between investors and the Company's representatives, including, in particular:

• for the ninth time it participated in the largest conference for retail investors from Central and Eastern Europe organized in Poland by the Polish Association of Individual Investors: the 23rd Wall Street Conference in Karpacz;
• organized 4 chats with retail investors hosted by the Member of the PZU Management Board in charge of the PZU Group’s Finance Division after publication of each quarter’s financial results.

Without interruption since 2012 PZU has also been participating in a program conducted by the Polish Association of Individual Investors called “10 of 10: Communicate Effectively. Its purpose is to promulgate high communication standards between public companies and retail investors.

Prizes and distinctions for IR activities

PZU’s investor relations activities are highly regarded by investors, analysts and the media. In 2019, PZU received among others the following prizes and distinctions in this area:

• 2nd place for Paweł Surówka, the PZU Group’s CEO in the Extel 2019 survey in the ranking of the best CEOs in terms of investor relations in Poland;
• special award entitled “The Best of the Best” in the contest entitled “The Best Annual Report 2018”, whereby it joined the community of the best public companies in terms of reporting;
• special prize for the best on-line annual report in the Banks and Financial Institutions category;
• award for offering the best Investor Relations service in the contest entitled Issuer’s Golden Website (public companies constituting the WIG20 and mWIG40 indices);
• distinction for the best IFRS/IAS-compliant activity report in the Banks and Financial Institutions category.

IR objectives in 2020

The main objectives of PZU’s investor relations function in 2020:

• strengthen good relations between the PZU Management Board and the community of investors, both in the local market and in the global market;
• ensure understanding and approval for PZU’s business strategy among investors and analysts;
• secure a deep and broad market for PZU’s shares and bonds by continuing investor-friendly measures to build a diversified base (in terms of geography, numbers and profile) of an appropriate number of well-informed investors familiar with the company;
• ensure a reliable valuation for PZU’s stock by providing sell-side analysts of investment banks and brokerage houses with high quality information about PZU’s operations, industry trends, drivers of financial performance and feedback after analysis of their recommendations;
• widen sell-side research coverage, in particular among international investment banks;
• provide the PZU Management Board with regular feedback concerning the perception of PZU among capital market players and broad knowledge of current and potential shareholders of the company;
• monitor investor sentiment towards PZU shares and changes in the shareholder structure in order to adopt the most adequate investor relations measures and tools;
• develop digital tools to address investor needs better, i.a. implement new solutions in the online annual report and enhance the functionality of the investor relations service;
• extend the scope of non-financial reporting;
• report carbon footprint data;
• deploy a loyalty program.

¹ Shareholder structure survey by IPREO.