Company Presentation As of December 2018 1 2 3 4 OVERVIEW BUSINESS - - PowerPoint PPT Presentation

Company Presentation

As of December 2018

OVERVIEW BUSINESS SEGMENTS FINANCIAL PERFORMANCE CORPORATE GOVERNANCE

3 1 2 4

2

December 2018 TOTAL ASSETS $ 2,055 NET LOANS OUTSTANDING1 $ 1,702 EQUITY $ 408 NET PROFIT $ 43 ROAE2 10.8% ROAA3 2.3% EQUITY TO ASSETS 19.8%

A Glimpse of Tanner

FINANCIAL INDICATORS

NPLs > 90 DAYS 2.3%

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 exchange rate of 694.77 CLP/USD. Figures in US$ M. 1) Net loans defined as gross loan portfolio – provisions. 2) ROAE calculated as Net Profit LTM / Total Average Equity 3) ROAA calculated as Net Profit LTM / Total Average Assets

With more than 25 years of presence in the financial sector, Tanner Servicios Financieros S.A. is currently one

• f the largest non-bank credit institutions in Chile and has

a leadership position with small-and medium-sized companies.

— Credit rating: BBB- international, AA- local — Highly diversified portfolio and funding sources: § Loans allocated across +16 industries. § Top five customers account for less than 13% of total

portfolio.

§ No single creditor represents more than 5% of total

liabilities.

— Broad network of +900 employees and 20 branches

across the country.

— Organized into 3 main divisions, comprised of:

CORPORATE

• Factoring
• Leasing
• Corporate

Loans AUTO LOANS

• Auto loans
• Insurance

INVESTMENTS

• Brokerage
• Investment

Banking Services

3

Strategy

OUR MODEL… …ALLOWS US TO

ü LEAD THE INDUSTRIES IN WHICH WE OPERATE ü ACHIEVE A >90% SECURED PORTFOLIO ü ESTABLISH A LOW RISK, RESILIENT BUSINESS

MODEL

ü ACHIEVE HIGH PROFITABILITY AND

GROWTH

HIGHLY COMMITTED SHAREHOLDERS

CLIENTS UNDERSERVED

BY COMMERCIAL BANKS

SPEED IS OF THE ESSENCE

• APPROVAL <30 MINUTES
• 24/7 AVAILABILITY

OPERATIONAL EXCELLENCE CONSERVATIVE BALANCE SHEET:

ü LOW LEVERAGE ü ACTIVE LIQUIDITY MANAGEMENT (DURATION / FUNDING / CREDIT RATINGS) 4

Investment Highlights

Source: Tanner

Strong balance sheet supported by superior financial performance

n Conservative asset and liability management, with diversified funding sources supported by a strong

capitalization base

n Proven track record of delivering superior financial results

3

One of the largest non-bank credit institutions in Chile

n Strong track record of organic and inorganic growth, with an established and loyal client base n Leading presence across core businesses, with a focus on serving the attractive small-and medium-

sized company sector

1

Diversified business model, focused on secured lending

n Diversified client base covered by a network of 44 branches throughout Chile n Balanced business model, with three main divisions and a series of businesses each accounting for

less than 25% of the profit

n Sound operational risk management

2

Corporate governance of the highest international standards

n Experienced management team supported by a strong shareholder base n Best-in-class Board of Directors, and corporate governance and compliance practices n Industry best practices

4

5

Competitive Landscape

Source: Tanner, ANAC, CAVEM, CMF with information dated December 31, 2018. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 697.44 CLP/USD. Figures in US$ M. 1) Yield defined as annualized income / average gross loan portfolio. 2) NPLs defined as non-perfoming loans > 90 days / gross loan portfolio.

LEADING FINANCIAL INSTITUTION — One of the largest Chilean non-bank credit institutions and a

relevant player in its core businesses:

§

#1 non-bank institution in the factoring industry (#4 overall)

§

#3 player in the auto financing business

— Investment grade (‘BBB-‘) by both S&P and Fitch Ratings: — Tanner targets small-and medium-sized companies, which typically

receive less effective coverage from the local banking industry:

FACTORING MARKET SHARE

4

BICE

8,6% 0,8% 2,1%

Santander Eurocapital Incofin

1,5% 10,1% 0,6% 1,5% 2,1% 2,2% 2,4% 4,7% 5,7% 8,1% 12,2% 15,8% 21,8%

Non-banking institutions

Source: forecastconsultores.cl for Achef. * Consorcio and LatamFactors Stock is as of December 2018

AUTO FINANCING: NET LOANS BY INSTITUTION(2) 9M18

$ 1,930 $ 576 $ 540 $ 238

Dated September 31, 2018 Dated December 31, 2018

6 # Clients Net Loans

SMEs Enterprise Corporations

85% 12% 3% 39% 27% 34%

Highlights

— Upgrade in local risk category from ‘A+’ to ‘AA-’ (S&P and Humphreys). — Net loan portfolio growth of 26.2% YoY. — NPL > 90 days drops 179 bps to 2.3%. — Local market bond issuances of UF 4,000,000 (~US 159 million) YoY.

COMPANY HIGHLIGHTS

Source: Tanner Financial Statements. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD and UF/CLP 27,565.79. Figures in US$ M. 1) Net loan portfolio defined as gross loan portfolio – provisions. 2)Gross Margin defined as revenues - costs for each business line.

NET LOAN PORTFOLIO BREAKDOWN (1) LIABILITIES MANAGEMENT GROSS MARGIN BREAKDOWN(2)

$ 250 $ 76 $ 65 $ 119 $ 75 $ 40 Local CCPP Foreign Institutions Dec.178 144A Payment Local Banks Local Bonds Foreign Banks $ 1,412 Dec.18 $ 1,287

The company raised +US$ 375 million in additional debt

2016 13% 58% 27% 7% 34% 2015 61% 52% 30% $ 84 19% 18% 2017 52% 29% 2018 $ 92 $ 73 $ 109 +19.4% Corporate Subsidiaries Auto-Financing

7

$ 349 $ 436 $ 518 $ 770 $ 857 $ 76 2017 2016 $ 34 $ 56 $ 1,108 2018 $ 1,153 $ 1,348 $ 1,702 +17% +26% Auto-Financing Corporate Subsidiaries

OVERVIEW BUSINESS SEGMENTS FINANCIAL PERFORMANCE CORPORATE GOVERNANCE

3 4 2 1

8

• I. Corporate Division

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M. 1) Net loan portfolio defined as gross loan portfolio – provisions. 2) Yield defined as annualized revenue / average net loan portoflio. 3) NPLs >30/90 days defined as non-perfoming loans > 30/90 days / gross loan portfolio.

YIELD(2) ENTERPRISE NET LOAN PORTFOLIO BREAKDOWN(1)

45% 43% 35% 20% 2017 36% 1.108 2015 21% 2016 32% 51% 17% 32% 58% 10% 2018 $ 797 $ 771 $ 857 +11,6% Factoring Leasing Corporate Loans 11.7% 2016 11.4% 2018 11.0% 2015 11.9% 2017

NPLs(3)

2018 5.3% 2015 2016 4.2% 2017 3.6% 5.7% 4.2% 4.9% 2.4% 1.4% NPLs > 30 days NPLs > 90 days

FUNDAMENTALS — Comprised of 3 businesses: §

Factoring: #1 non-bank competitor, >20 years of experience,

• perated solely as a factoring company until 2004.

§

Corporate lending.

§

Leasing.

— One-stop-shop and cross-selling opportunities. — Diversified portfolio, focused on industries with strong

fundamentals.

9

COMPANY NET LOAN PORTFOLIO BREAKDOWN (1)

(i) Factoring: Industry Highlights

. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M. (*) Figure as of November 2018

(**) Figure as of jun- 2018

INTEREST RATE EVOLUTION INDUSTRY HIGHLIHTS INDUSTRY: STOCK EVOLUTION INDUSTRY: STOCK AND INTEREST RATES

10

Source: ACHEF

— Highly competitive industry. More than 120

competitors

— Stock in historical level. — Prompt Payment Law — Basilea III

904 456 531 4,062 Banks nov-18 2017 4,326 Tanner, Internacional, Security Others* 5,422 5,917 1,060

Average Interest Rate** <8% 10%-13% >15%

5,917

2014 2009 2016 2015 2010 2011

2,802

2012 2013 2017 2018*

2,055 3,497 3,745 3,797 3,759 4,097 4,357 5,422 +12%

Stock Evolution

21.7% Corporate Company 42.3% SMEs 11.1% Real Estate 24.9%

Source: ACHEF

INDUSTRY: REVENUES PER SEGMENT

(i) Factoring: Highlights

Source: Tanner. Institution information based on September 31, 2018 financial statements. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M. 1) Net loans defined as gross loans – provisions. 2) Yield defined as annualized income / average net loans. 3) NPLs > 90 days defined as non-performing loans > 90 days / gross loan portfolio.

NET LOANS(1) and # CLIENTS FUNDAMENTALS

2015 2016 12.9% 2017 13.9% 2018 11.8% 13.5% 278 332 438 640 2,548 2016 1,880 3,177 2015 2017 3,281 2018 Clients Net Loans

YIELD(2) NPLs > 90 DAYS(3) – FACTORING

2014 2015 2016 2017 2018 6.3% 5.0% 5.6% 2.9% 1.1%

11

— #1 non-banking competitor in the industry. — >20 years of presence in the sector, operating as a sole factoring

company until 2004.

— Diversified portfolio, focused on industries with strong

fundamentals.

— Higher returns compared to loans with similar risk profiles. — Significant source of liquidity due to its short duration.

* As of September 2018 (in USD MM) Source: ANAC, companies' financial statements, interviews

INDUSTRY ASSETS GROWTH AUTO LOANS MARKET SHARE

• II. Auto Financing Division

NEW CAR SALES EVOLUTION INDUSTRY HIGHLIGHTS

— Industry highly related to the automobile industry. — Low vehicle penetration rate in the country. — 45%-50% of the payment method of the car sales are

through auto loans. 35%-40% through bank loans and 10%-20% are with cash.

— Highly competitive industry. — Car sales are in historical level: 417.038 new cars sales

and ~ 997.000 used cars on 2018.

12

2.265 2.578 3.181 3.763 2015 2016 2017 2018* +18,4% 305,540 417,038 2016 2015 2017 2018 282,232 359,515 +13.9%

16% 47% 14% 7% 16%

Others

Source: Tanner, ANAC, CAVEM, CMF with information dated December 31, 2018. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 697.44 CLP/USD. Figures in US$ M. 1) Yield defined as annualized income / average gross loan portfolio. 2) NPLs defined as non-perfoming loans > 90 days / gross loan portfolio.

YIELD(2)

2015 24.5% 2016 25.2% 24.9% 2017 2018 24.6%

NPLs > 90 DAYS(3) – AUTO FINANCING 2018 2015 2014 2017 2016

6.9% 6.7% 5.1% 5.5% 4.4%

• II. Auto Financing Division

NET LOAN PORTFOLIO(1) AND # CLIENTS

$ 309 $ 349 $ 436 $ 518 49,704 48,113 57,293 2016 2015 2017 67,577 2018 Clients Net Loan Portfolio

FUNDAMENTALS — Attractive risk / return profile.

§ Secured by pledge of car. § Exposure reduced by down-payment.

— Diversified sales strategy:

§ Electronic Bidding Platform (Amicar): 59.1% § Dealers: 27.5% § Direct: 13.4%

— Portfolio composition: 69% new cars / 31% used cars. — Cross-selling of insurance products with attractive yields.

13

• III. Tanner Investments

Source: Tanner. Bolsa de Comercio de Santiago. Note: All figures converted from CLP to USD on September 30, 2018 with an exchange rate of 660.42 CLP/USD. Figures in US$ MM.

TOTAL TRADING VOLUME MARKET SHARE 12M18

$ 302.6 2015 2016 2017 $ 516.4 2018 $ 945.0 $ 381.8

NET PROFIT

Non-banking institutions

ASSETS UNDER MANAGEMENT

2016 2017 2018 $ 2.12 $ 3.24 $ 4.04

+52.8% +24.7%

14

— Provides brokerage and asset management services through 3

entities: § Corredores de Bolsa (TCB): brokerage services, #11 player in the market. § Asset Management (TAM): distribution of third parties feeder funds. § Asesorías e Inversiones (TAI): strategic advisory services.

— >US$900 M in AUM and >2,000 clients. FUNDAMENTALS

CORPORATE GOVERNANCE

4

OVERVIEW

1

BUSINESS SEGMENTS

2

FINANCIAL PERFORMANCE

3

15

CONSOLIDATED REVENUES NET LOAN PORTFOLIO GROSS MARGIN AND NET PROFIT

Succesful Track Record

NPLs(3)

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M. 1) Net loan portfolio definded as gross loan portfolio – provisions. 2) NPLs > 90 days definded as non-performing loans > 90 days/ gross loans.

16

$ 226 $ 179 $ 220 $ 279 2017 2015 2016 2018 Revenues $ 73 $ 84 $ 92 $ 109 $ 29 $ 32 $ 36 $ 43 2015 2017 2016 2018 Gross Margin Net Profit 4.4% 2018 2015 4.8% 2016 6.9% 2017 7.4% 6.9% 4.1% 4.9% 2.3% NPLs > 30 days NPLs > 90 days $ 349 $ 436 $ 518 $ 770 $ 857 $ 1,153 2018 2017 $ 34 2016 $ 56 $ 1,108 $ 76 $ 1,348 $ 1,702 Corporate Auto-Financing Subsidiaries

LIQUIDITY(1) AND INTEREST HEDGE (2) ROAA(6) LEVERAGE (3) AND CAPITALIZATION(4)

Equity

1.8 1.8x 1.8x 2015 1.8x 2016 2018 2017 1.5x 2.6x 1.7x 1.3x Current Ratio Interest Hedge Ratio 2016 0.2x 2015 2017 0.2x 0.2x 0.2x 2018 3.0x 3.0x 3.3x 4.0x Leverage Capitalization

ROAE(5)

2018 9.7% 2015 9.2% 2016 8.8% 2017 10.8% Average 2015-2018: 10.1% 2.3% 2015 2016 2.3% 2017 2018 2.3% 2.3% Average 2015-2018: 2,3%

Source: Tanner 1)Current Ratio defined as Current Assets / Current Liabilities. 2)Interest Hedge Ratio defined as (Profit Before Tax + Financial Expenses) / Financial Expenses. 3)Leverage defined as Total Liabilities / Total Equity. 4)Capitalization defined as Equity / Total Assets 5)ROAE defined as Net Income / Total Average Equity. 6)ROAA defined as Net Income / Total Average Assets.

17

Liability Management

Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M.

FUNDING BREAKDOWN LIABILITIES COMPOSITION BALANCE MATURITY PROFILE

Loans Others Commercial Paper Bonds

Local Loans $248 16% Local Bonds $482 32% Commercial Paper $156 10% International Loans $266 18% [NOMBRE DE CATEGORÍA] [VALOR] [PORCENTAJE] [NOMBRE DE CATEGORÍA] [VALOR] [PORCENTAJE]

$ 55 $ 177 $ 221 $ 77 $ 80 $ 123 $ 153 $ 176 $ 41 $ 57 $ 64 $ 24 $ 126 $ 1 $ 100 2021 2H19 2022 2020 $ 231 $ 278 >2022 $ 141 $ 81 $ 147 1Q19 $ 381 $ 2 2Q19 $ 248 $ 17 $ 12 2015

72%

2017

61% 4% 8% 26% 27% 6% 3% 20%

2016

5% 8% 61% 7% 10% 49% 34%

2018 $ 974 $ 1,039 $ 1,236 $ 1,507 Others Commercial Paper Loans Bonds

LIQUIDITY POLICIES

— 1) The mismatch duration between assets and

liabilities must be, at least of 0.5 years. 2) Short Terms credit lines & collections of corporate loans portfolio must cover, at least, six months of all the non-renewable liabilities.

18

19

FINANCIAL PERFORMANCE

3

OVERVIEW

1

BUSINESS SEGMENTS

2

CORPORATE GOVERNANCE

4

Shareholders

PROPERTY COMPOSITION BOARD MEMBERS

Ricardo Massu

President 40+ years of experience

Martín Díaz-Plata

Director

Jorge Sabag

Vice-President 34+ years of experience

Jorge Bunster

Director

Eduardo Massu

Director

Óscar Cerda

Director

Pablo Eguiguren

Director

5% 1% 1% 53% 26% 1% 7% 6% Inversiones Bancarias S.A. Asesorías Financieras Belén (J.Sabag) Inversiones Gables Others Inversiones Similan CIPEF (Capital Group) F.I.P. Tanner Valores Massu Group

—

Capital International Private Equity Fund (CIPEF) is the global private equity arm of Capital Group, an ~US$ 1.4 trillion in AUM independent fund manager with >80 years of experience.

—

Focused on emerging markets, has invested >US$ 4.5bn in 82 companies across 25 countries and 35 industries.

—

Controlled by Mr. Ricardo Massu, founder and current Chairman of the Board.

—

Massu Group has a 100% shareholding interest in Inversiones Bancarias S.A.

—

Controlled by Mr. Jorge Sabag, current Vice Chairman of the Board.

Massu Group Asesorías Financieras Belén

MAIN SHAREHOLDER PROFILE

Capital Group

Administradora Tanner Inversiones Los Corrales

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Corporate Governance

Source: Tanner. 1) CMF: Comisión para los Mercados Financieros, Securities and Insurance Local Regulator.

— Review and control of business strategy, monthly results, budget, investments, financial performance, among others. Board of Directors Asset and Liability Management Committee Compliance Committee Credit Committee Audit Committee — Approval of all credit lines over US$ 300k for factoring and corporate lending, and over US$ 400k for leasing. — Proposals to improve procedures behind loan underwriting process. — Review of internal audit reports, control of annual internal audit plan, regulatory compliance and compliance with

comments from external auditors and regulator.

— Review of macroeconomic and microeconomic indicators and their impact across business lines, as well as financial

performance, liquidity position and currency/duration mismatches.

— Prevention of money laundering and terrorism financing, and review of compliance matters. TANNER´S CORPORATE GOVERNANCE FRAMEWORK

— Tanner is subject to CMF1 rules and regulations, given its status of an issuer of securities in the local debt capital

markets.

— World-class corporate governance practices based on Capital Group’s vast experience.

Operational Risk and Security Information Committee — Prioritize and provide the resources to mitigate the main operational risk events, implement management models and

information security policies and procedures.

New Products Committee — Determine the feasibility of incorporating a new product or modifying existing products

21

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APPENDIX

22

December 2018 figures

12M17 12M18 Δ YoY Net Loan Portfolio(1) $ 1,348 $ 1,702 +26.2%

Corporate Division $ 857 $ 1,108 +29.4% i. Factoring $ 437 $ 640 +46.5% ii. Leasing (*) $ 145 $ 114

• 21.7%

iii. Corporate Loans $ 275 $ 354 +29.0% Auto-Financing Division $ 436 $ 518 +18.9%

NPLs > 90 Days(2) 4.07% 2.28%

• 179 bps

Corporate Division 3.61% 1.42%

• 220 bps

i. Factoring 1.06% 2.93%

• 186 bps

ii. Leasing 8.02% 4.73%

• 473 bps

iii. Corporate Loans 2.33% 1.45%

• 88 bps

Auto-Financing Division 5.45% 4.40%

• 106 bps

Income $ 220 $ 279 +27.0% Gross Margin $ 92 $ 109 +19.4% Net Profit $ 36 $ 43 +17.5% ROAA(3) 2.3% 2.3% +0 bps ROAE(4) 9.7% 10.8% +103 bps

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 694.77 CLP/USD. Figures in US$ M. 1) Net loan portfolio definded as gross loan portfolio – provisions. 2) NPLs > 90 days definded as non-performing loans > 90 days/ gross loans. 3) ROAA calculated as net profit LTM / total average equity. 4) ROAE calculated as net profit LTM / total average assets.

23

(*) The variation in leasing net loans, is mainly due to the new strategy of the división, which consist in focusing on non - auto leasing deals.

Balance Sheet (1/2)

Source: Tanner. Note: All figures converted from CLP to USD at the December 31, 2018 exchange rate of 694.77 CLP/USD.

24 Assets (Th US$) 12-31-2018 12-31-2017 Δ $ Δ % Current Assets Cash and cash equivalent 36,665 121,818 (85,153)

• 69.9%

Other current financial assets 150,157 70,700 79,457 112.4% Other current non-financial assets 2,541 2,227 314 14.1% Trade receivables and other current accounts receivable, net 1,109,684 867,890 241,794 27.9% Current accounts receivable from related parties 659 651 8 1.3% Current tax assets 18,496 11,887 6,609 55.6% Non-current assets held for sale 11,469 8,946 2,523 28.2% Total Current Assets 1,329,671 1,084,120 245,552 22.6% Non-Current Assets Other non-current financial assets 54,054 32,076 21,978 68.5% Other non-current non-financial assets 4,061 8,949 (4,887)

• 54.6%

Trade receivables and other non-current accounts receivable, net 592,435 480,493 111,942 23.3% Non-current accounts receivable from related parties 981 879 101 11.5% Intangible assets other than goodwill 7,945 5,050 2,894 57.3% Goodwill 2,538 2,538

• 0.0%

Property, plant and equipment 4,590 4,809 (219)

• 4.6%

Property Investments 13,409 4,527 8,881 196.2% Deferred tax assets 45,019 43,024 1,995 4.6% Total Non-Current Assets 725,032 582,346 142,686 24.5% Total Assets 2,054,703 1,666,466 388,238 23.3%

Balance Sheet (2/2)

Source: Tanner. Note: All figures converted from CLP to USD at the December 31, 2018 exchange rate of 694.77 CLP/USD.

25

Liabilities (Th US$) 12-31-2018 12-31-2017 Δ $ Δ % Current Liabilities Other current financial liabilities 860,135 525,174 334,961 63.8% Trade payables and other current accounts payables 130,846 100,568 30,278 30.1% Other short-term provisions 440 705 (265)

• 37.6%

Short-term employee benefits provisions Current tax liabilities 5,696 1,155 4,542 393.4% Other current non-financial liabilities 3,319 1,681 1,638 97.4% Total Current Liabilities 1,000,436 629,296 371,140 59.0% Non-Current Liabilities Other non-current financial liabilities 646,564 649,299 (2,735)

• 0.4%

Non-current accounts payable

• Deferred tax liabilities

163

• 163

Total Non-Current Liabilities 646,727 649,299 (2,572)

• 0.4%

#¡DIV/0! Total Liabilities 1,647,164 1,278,595 368,568 28.8% Equity 407,540 387,870 19,670 5.1% #¡DIV/0! Total Equity and Liabilities 2,054,703 1,666,466 388,238 23.3%

Income Statement

Source: Tanner. Note: All figures converted from CLP to USD at the December 31, 2018 exchange rate of 694.77 CLP/USD.

26

01-01-2018 01-01-2017 Δ $ Δ % 09-30-2018 12-31-2017 Revenue from ordinary activities 279,049 219,761 59,287 27.0% Sales cost (169,558) (128,052) (41,506) 32.4%

• Gross profit

109,491 91,709 17,782 19.4% Other revenue, by function 3,235 3,496 (261)

• 7.5%

Administrative expenses (63,738) (55,193) (8,545) 15.5% Other profits (losses) (39) 20 (59)

• 297.0%
• Operating margin

48,949 40,032 8,917 22.3% Financial revenue 146 281 (135)

• 47.9%

Financial costs (430) (314) (116) 36.9% Foreign exchange differences 16 (56) 72

• 128.1%

Income by adjustment units 124 214 (90)

• 42.1%
• Profit (losses) before taxes

48,805 40,157 8,648 21.5% Revenue (expense) from profit taxes (6,002) (3,714) (2,288) 61.6%

• Profit (losses)

42,802 36,442 6,360 17.5% Profit (losses) attributable to controller's property owners 42,268 35,433 6,835 19.3% Profit (losses) attributable to non-controller shares 534 1,010 (476)

• 47.1%

INCOME STATEMENT Th US$

More Than 25 Years of Proven Track Record

Source: Tanner

1993 2013 2014 2004 2008 2010 2011 2012 2007 2002

• Tanner is established by

the controlling shareholders of Banco BHIF (now BBVA Chile), the Massu and Said Groups, under the name Bifactoring S.A. The Company’s name was changed to Factorline S.A. in 1999.

• Tanner registers with the

Chilean Securities and Insurance Supervisor (known as the SVS, for its initials in Spanish)

• Tanner completes the first

ever issuance of commercial paper in Chile.

• IFC acquires a 17.6%

stake in Tanner through a capital increase.

• Tanner completes its first

bond issuance in the local market for about USD40mm.

• Tanner obtains a BBB-

(investment grade) international rating from both Fitch and S&P.

• International bond

issuance for USD250mm.

• CIPEF, an EM private

equity firm, acquires a 27% stake in Tanner through a capital increase.

• Company name

changes to Tanner Servicios Financieros S.A.

• Tanner enters the

factoring business.

• Tanner Commodities

Brokerage Division is registered with the SVS as the first broker on Chile's Commodities Exchange.

• Tanner enters the

leasing business.

• Tanner Insurance

Brokerage Division begins operations.

• Tanner acquires CIT

Chile, now Tanner Leasing Vendor.

• Tanner acquires a 50%

stake in Tanner Securities Brokerage Division.

• Tanner enters the

corporate lending business. Entry into new business área. 2005

• Tanner enters the

auto financing business. 2010 2015 2016 2017 2011 50,588 2012 2014 2013 2018 23,674 34,015 42,674 53,561 51,202 54,586 62,164 68,845 +14%

CLIENTS

2017

• Tanner Asset

Management Division starts operations 2018

• Tanner obtains a AA-

local rating from both Humphreys and S&P

• Net loan portfolio in

historical level.

27

(ii) Corporate Loans and Leasing

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 with an exchange rate of 697.44 CLP/USD. Figures in US$ M. 1) Net loans defined as gross loans – provisions. 2) NPLs > 90 days defined as non-perfoming loans / gross loan portfolio.

CORPORATE NET LOAN PORTFOLIO(1) AND # CLIENTS

$ 378 $ 289 $ 289 $ 354 971 837 578 2015 2016 1,261 2017 2018 Clients Net Loans

LEASING NET LOAN PORTFOLIO(1) AND # CLIENTS

$ 31 $ 49 $ 57 $ 58 $ 128 $ 114 $ 88 $ 56 857 560 1,073 $ 159 1,269 $ 163 $ 145 $ 114 Others Real Estate Clients

FUNDAMENTALS

2015 2016 2017 2018 8.0% 8.2% 2.3% 0.6% 1.5% 7.0% 3.3% 1.5%

NPLs > 90 DAYS(2)

28

Leasing Corporate Loans

LEASING: — Implemented in 2007 in response to demand from SME clients. — Key role in portfolio diversification strategy due to longer maturities. — High potential for growth in real estate leasing and cross-selling

• pportunities to factoring clients.

— Since 2018, we moved out from de auto leasing business. CORPORATE LOANS — Focused on SMEs, delivering higher returns with shorter duration. — Mainly working capital loans to factoring clients; goal is to increase client loyalty by funding growth.

Prompt Payment Law: Summary

The payment period is 30 consecutive days from the 25th month of publication of the law. The first two years the payment term will be 60 days.

General Payment Period Public Sector Exceptional Payment Term

The law will allow, in very exceptional cases, the parties can agree a payment period of more than 30 days, fulfilling conditions that include, among others, a written agreement that can not constitute an abuse for the creditor and that must be registered in a Ministry of Economy register. The payment term is 30 calendar days and a payment term of up to 60 days can be established in case of bidding or contracts.

n The factoring industry, whose income depends on the delay of payment to suppliers,

should make changes in their business models, because of The Prompt Payment Law, which enters in regime in early 2021, and contemplates the following subjects:

29

Prompt Payment Law: Impact on Tanner

Source: Tanner. Note: All figures converted from CLP to USD on December 31, 2018 exchange rate of 694.77 CLP/USD. Figures in US$ M.

INVOICE PER DURATION FACTORING NET LOANS 2018 $342 $123 $76 $101 Invoices

Checks Others Promissory Note

$190 $114 $39 > 60 days

Between 30 and 60 days < 30 days

LAW IMPACT $102 $44 $44

Agreement between parties Lost

Conform to the New Law

ESTIMATED IMPACT ON FACTORING NET LOANS

6.8%

n The estimated loss of factoring net loans, because of the new law is 6.8% (2.6% of

Tanner´s net loans)

n We assume that 50% of the amounts related to invoices whose duration exceed 60

days, will be part of the “Agreement between parties” legal choice.

n The remaining 25% will adjust to the new payment period deadline. 30

Contact Information: Maria Paz Merino Head of Investor Relations El Golf 40, 9th floor, Las Condes, Santiago – Chile Phone number: + 562 2731 8810 E-mail: maria.merino@tanner.cl