Corporate presentation 4Q-2017
D I S C L A I M E R » The forward- looking statements contained herein are based on Management’s current forecasts and outlook. For better illustration and decision-making, figures for Suramericana, SURA Asset Management and its subsidiaries are administrative rather than accountant, and therefore may differ from those presented to official entities. Thus, Grupo de Inversiones Suramericana assumes no obligation to update or correct the information contained in this presentation. All figures in USD are converted with an exchange rate of 2,984.0 COP/USD (exchange rate for December 31, 2017) only for re-expression purposes. 2
H I G H L I G H T S » 01 04 USD 7.8 bn M E X I C O Market Cap G U A T E M A L A Group of leading financial D O M I N I C A N Outstanding R E P U B L I C S A L V A D O R P A N A M A services companies in Latam brand recognition 48.8 million C O L O M B I A Clients * P E R U B R A Z I L 02 05 Assets managed by our strategic investments * » C H I L E COP 602 tn U R U G U A Y A R G E N T I N A Industry and geographic Experienced management USD 202 bn diversification team Investment grade: Fitch BBB S&P BBB- 03 06 57,000 Large client base in attractive High standards of employees * markets focused on long term corporate governance relationships * These figures correspond to Grupo SURA’s subsidiaries and strategic investments Suramericana, SURA Asset 3 Management and Bancolombia .
I N V E S T M E N T P O R T F O L I O » STRATEGIC INVESTMENTS INDUSTRIAL INVESTMENTS CORPORATE VENTURE In alliance with Veronorte 81.1% 83.6 % 46. 3 % * 35.2% 35. 3 % * GROWTH INVESTMENTS Insurance, Trends Universal Pensions, Asset and Processed Food Cement, Energy and Risk Management Banking Wealth Management and Infrastructure *Stakes in common shares. 4
I N D U S T RY A N D G E O G R A P H I C D I V E R S I F I C AT I O N » Diversified financial services portfolio Geographic diversification Country Clients Revenues Net Income Assets COLOMBIA 43.5% 49.2% 27.7 52.9% CHILE 3.7 20.8% 22.4% 29.0% MEXICO 7.3 9.0% 17.8% 9.1% Banking PERÚ Pension, AM & WM 2.0 2.3% 9.3% 4.6% ARGENTINA Insurance 1.9% 2.2% 1.0 6.3% PANAMA 0.7% 1.6% 0.8 2.1% OTHER of Equity focused 6.3 6.6% 4.4% 4.3% 66% on financial services 460 TOTAL 48.8 6,857 23,249 Figures in million USD as of December 31, 2017. Clients in million. Drivers » Economic Demographics Under penetrated Middle class Formalization growth sectors formation of the economy 5
L A R G E C L I E N T B A S E I N AT T R A C T I V E M A R K E T S » SURAMERICANA » SURA ASSET MANAGEMENT » BANCOLOMBIA » • 17.6 million clients in 9 countries. • 18.8 million clients in 6 countries. • +13 million clients • #1 Insurance company in Colombia • #1 Pension Fund in Latam with 23% • #1 Bank in Colombia and leading and largest in Latam (ex-Brazil). MS and USD 135 Bn in AUM. franchise in Central America. • Broad platform with Life, P&C and • Steady cash flows on monthly • Total assets of USD 68 bn. Social Security solutions. mandatory contributions. • Financial conglomerate that offers a • Strong risk management with • Growing voluntary business in wide portfolio of products and services geographic and market diversification. underpenetrated markets. in 10 countries. • Innovative approach to insurance • Upside potential due to attractive • NYSE listed since 1995. business. demographic trends. • Market Cap: USD 9.7 Bn. • GWP of USD 4.0 Bn (2017). AAA Local (BRC Investor Services) Baa1 ( Moody’s ) I BBB+ (Fitch) Baa2 (Moody’s) I BBB (Fitch) BB+ (S&P) 6
H I S T O RY & G R O W T H S TA G E S » 1990 / 2007 1944 / 1990 2007 / 2016 2017 INSURANCE FINANCIAL INTERNATIONAL FOOTPRINT LEADERSHIP SERVICES EXPANSION OPTIMIZATION in Colombia group leader in Colombia Multi Latin, financial services group 7
I N V E S T M E N T P O R T F O L I O » 2010 » 2017 » 25.3% Bancolombia Bancolombia 37% Protección 3% 27.8% Sura Asset Management Suramericana 6% USD 5.9 Bn 13.0% Suramericana Grupo Nutresa 24% USD 9.4 Bn Grupo Argos 29% 16.1% Grupo Nutresa Other 1% 17.2% Grupo Argos 46% in Financial Services 0.6% Other 66% in Financial Services Note: Portfolio considering Suramericana & SURA AM at 1x P/BV and public companies at market value. 8
S T R AT E G I C G U I D E L I N E S » COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES Development of our INNOVATION GEOGRAPHIC AND NEW Corporate Role » EXPANSION BUSINESS AND MARKET VENTURES DEVELOPMENT Executive Committee • CEOs from strategic investments CREATING ADDED VALUE • Long-term strategy HUMAN CORPORATE • Expansion and synergies TALENT GOVERNANCE AND INSPIRING TRUST AND CORPORATE CULTURE Financial Committee • CFOs from strategic investments • Cash management SOUND STRONG • Indebtedness and hedging REPUTATION FINANCIAL AND BRAND • M&A POSITION STRENGTH 9
I N N O VAT I O N A N D N E W V E N T U R E S » ALLIANCES Identify challenges of the digital age for our businesses, and partner for the development of specific projects, that help us make the transition together towards the future. » Big Data & Analytics » Blockchain » Identity STARTUP FACTORY CORPORATE VENTURE Investment in startups, with great potential, that are Platform for disrupting our businesses. experimentation, OBSERVATORY with different rules to those of the Create an holistic organization. vision of the world and industry Innovation cycle: • Research • Plan • Prototype • Go-to-market • Monitor • Adjust 10
C O M P R E H E N S I V E R A N G E O F S E R V I C E S A N D S Y N E R G I E S » ($) Wealth – + Life Cycle Assisted Programmed Annuities Universal Mandatory P&C Mandatory Voluntary Life Insurance Mutual Securities Withdrawal Living Banking Pensions Insurance Health Savings and Savings Funds ACCUMULATION PHASE DE-ACCUMULATION PHASE 11
MEXICO G E O G R A P H I C E X PA N S I O N #29 A N D M A R K E T D E V E L O P M E N T » #3 DOMINICAN REPUBLIC #5 GUATEMALA #4 COLOMBIA EL SALVADOR #1 #2 PANAMA #1 #1 #4 #2 #2 #2 PERU #1 BRAZIL CHILE #18 #1 in P&C #4 Strategic Investments ARGENTINA URUGUAY #17 #3 #2 Number below each country corresponds to ranking in the strategic investment’s respective markets. 12 For SURA AM ranking is presented for pension funds.
GOVERNANCE C O R P O R AT E G O V E R N A N C E » CORPORATE S H A R E H O L D E R S » 27.1% Grupo Argos and Total Outstanding Shares subsidiaries 33.6% Grupo Nutresa 581,977,548 10.2% 12.7% Colombian Pension 25.8% 18.6% Funds (COMM + PREF) (COMM) Outstanding Outstanding International Funds 21.5% Common Shares Pref. Shares 20.8% 80.6% 19.4% Retail Investors 4.0% 3.4% Local Institutional 11.4% Market Cap 10.9% Investors USD 7.8 BILLION International ownership evolution » International Funds 875 21.5% 21.8% 17.4% 20.5% Number of Shareholders 14.3% 390 10,975 337 363 364 12.3% 282 202 9.8% Average volume Traded Average volume Traded 508 42 490 Pref. Shares 477 485 0.0% 382 12 months Pref 12 months Common 295 229 USD 2.6 million USD 1.7 million 147 Comm. Shares 2010 2011 2012 2013 2014 2015 2016 2017 13 Source: Shareholders book as of December 31, 2017.
GOVERNANCE C O R P O R AT E G O V E R N A N C E : CORPORATE S U S T A I N A B I L I T Y A N D B O A R D C O M P O S I T I O N » HIGH CORPORATE STANDARDS Code of Good Governance in accordance with international practices. The Board of Directors has 7 members of which 4 are independent. The chairman and vice-chairman are independent. Main committees that oversee the corporate governance practices of the company: • Audit and Finance Committee (composed 100% of independent members) • Compensation and Development Committee. • Corporate Governance Committee • Risk Committee 14
SOUND REPUTATION AND BRAND STRENGTH» SOUND REPUTATION AND BRAND STRENGTH DOMINICAN REPUBLIC 2017: 37 MEXICO 2017: 54 2016: COLOMBIA 60% PANAMA 2017: 83 2017: 65 2014: 48% PERU BRASIL 2017: 49 SURA´S BRAND AWARENESS» 2017: 17 has surpassed the 50% threshold in most of the URUGUAY CHILE countries where it operates 2017: 66 2017: 66 ARGENTINA 2017: 25 15
S T R O N G F I N A N C I A L P O S I T I O N » Dividend evolution » 342 3x 293 276 Bancolombia 2010 Dividends 204 SURA AM 187 Grupo Argos 151 * Calculation done in a proforma basis Grupo Nutresa 103 101 Source: each of the companies’ annual report. Protección Estimates done by Grupo SURA Suramericana Figures in USD Million Other FX: 2,936.7COP/USD 2010 2011 2012 2013 2014 2015 2016 2017 40.6% SURA Asset Management Colombia 46% 25.3% Bancolombia Mexico 14% USD 300 16.0% Suramericana Chile 12% BY COMPANY BY COUNTRY Peru 8% MILLION 9.8% Grupo Nutresa Panama 7% 8.1% Grupo Argos Uruguay 3% 0.2% Other Other 9% 16
S T R O N G F I N A N C I A L P O S I T I O N » O P E R A T I N G C A S H F L O W Grupo SURA generates close to USD 200 million for debt, dividend payment and investments 2018E 49 115 362 313 197 Dividends and Operating Expenses Operating Cash Interest Cash Available Other Income Flow Figures in USD million 17 (1) FX = COP 2,984.00 per USD
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