Mapfre S A : (12.2021) Presentation on the termination of the bancassurance agreements with BANKIA and business restructuring in Spain

Madrid, December 29, 2021

SPANISH SECURITIES AND EXCHANGE COMMISSION

PRIVILEGED INFORMATION

In line with the current provisions, please find attached privileged information for shareholders and the public in general.

Ángel L. Dávila Bermejo General Counsel

Termination of the bancassurance agreements with BANKIA and business restructuring in Spain

December 29, 2021

Overview

• Total proceeds received by MAPFRE for the sale to CAIXABANK of 51% of BANKIA VIDA (BV), as well as for the termination of the agency contract for the distribution of Non-Life insurance amount to €571 mn. This sum corresponds to:
• • 100% of the market value of MAPFRE's 51% stake in BV (€294 mn) and the Non-Life insurance business (€225 mn), as determined by an independent appraiser
  • Plus 10% (≈€52 mn) that corresponds to MAPFRE for the termination of the alliance as a

Compensation

result of BANKIA's merger

• Arbitration is sought for MAPFRE's right to receive an additional 10% of the value of the Life and Non-Life businesses if, according to the bancassurance agreements signed, the termination of the alliance as a result of BANKIA's merger constitutes a circumstance (e.g. change in control) that grants MAPFRE the right to receive 120% of the valuation, instead of 110%, as CAIXABANK affirms, as it considers the merger as an extension of the BANKIA network
• MAPFRE disagrees with the market value assigned to BANKIA VIDA business
• Part of the proceeds received will be used to improve operational efficiency and reduce

Use of proceeds	financial expenses, resulting in annual savings of over €46 mn

• MAPFRE reaffirms its commitment to return to the pre-Covid dividend level as soon as possible
• Investments will continue to be made in the business, analyzing both organic and inorganic opportunities, with a focus on strategic markets and channels

2

MAPFRE disagrees with the market value assigned to BANKIA VIDA business

Valuation multiples - BANKIA VIDA
Valuation		294
Equity1		321
MCEV2		365
Valuation/MCEV		0.8 x
Valuation/Equity		0.9 x
X times earnings (PER)3		4.4 x

The figures reflect MAPFRE's 51% stake in BV

1. At 12.31.2020 (2) Market Consistent Embedded Value at 12.31.2020. Includes the equity value of the company, plus the present value of future profits of the portfolio in force (3) 2020 result

• It is a very profitable company distributing dividends every year
• Its financial statements have been audited with a favorable opinion
• There was a perpetual exclusivity agreement for the distribution of Life insurance through BANKIA's former branch network
• Its MCEV2, verified by an actuarial expert, amounted to €715 mn. This value does not include the future profits from new policies resulting from the exclusive distribution agreement.

Notice is hereby given of MAPFRE's express disagreement with the market value of the Life

insurance business determined by the independent appraiser, as it does not follow the

instructions given by the parties for its calculation, and accordingly MAPFRE will exercise the

necessary legal actions to defend its legitimate rights

Million euros

3

Impacts on MAPFRE's financial statements

1. Transaction profit (€171 mn)

• €141 mn correspond to the capital gain from the closing of the transaction
• €30 mn correspond to the result attributed to MAPFRE for the 51% stake in BV from April to the closing date

				Transaction profit
				Net gain2	Net result
mn€	Compensation	Gross gain1			since April2
TOTAL	571	191		141	30	€171 mn
MAPFRE VIDA	324	0		-1	30
MAPFRE ESPAÑA	247	191		141

2. Impact on year-end result due to accounting reclassification (€31 mn)

• Following the deconsolidation of the subsidiary, an additional €31 mn will be reflected in the consolidated result as a consequence of the reclassification of BV's unrealized capital gains from valuation adjustment reserves to year-end results, in line with IFRS 10 criteria
• This will have a neutral impact in equity

3. Potential contingent assets and revenue (€52 mn)

• Arbitration is sought for MAPFRE's right to receive an additional 10% of the value of the Life and Non-Life businesses if, according to the bancassurance agreements signed, the termination of the alliance as a result of BANKIA's merger constitutes a circumstance (e.g. change in control) that grants MAPFRE the right to receive 120% of the valuation, instead of 110%, as CAIXABANK affirms, as it considers the merger as an extension of the BANKIA network
• It will be accounted in P&L as soon as the real collection right is recognized (expected to be settled in 2022)

1.	Before taxes and minorities	4
2.	After taxes and minorities, to the last closing figure known (11.30.2021)