RESULTS PRESENTATION JUNE 2017 HIGHLIGHTS 1H16 1H17 YoY NET - - PowerPoint PPT Presentation

RESULTS PRESENTATION JUNE 2017

HIGHLIGHTS

2

1H16 1H17 Δ YoY NET LOANS(1) $ 733,174 $ 829,942 +13.2%

Factoring $ 209,003 $ 231,772 +10.9% Auto-Financing $ 223,375 $ 266,348 +19.2% Corporate Lending $ 174,999 $ 203,438 +16.3% Leasing $ 107,940 $ 103,664

• 4.0%

NPLs > 90 DAYS(2) 4.7% 4.0%

• 70 pbs

Factoring 5.5% 3.4%

• 210 pbs

Auto-Financing 5.6% 5.2%

• 40 pbs

Corporate Lending 1.3% 1.9% +60 pbs Leasing 7.3% 7.4% +10 pbs

REVENUES $ 56,695 $ 63,681 +12.3% GROSS MARGIN $ 28,570 $ 29,273 +2.5% NET PROFIT $ 10,658 $ 11,119 +4.3% ROAA(3) 2.3% 2.2%

• 10 pbs

ROAE(4) 8.9% 8.7%

• 20 pbs

Source: Tanner. Figures in million of Chilean pesos. 1) Net loans defined as loans net of provisions. 2) NPLs > 90 days defined as Non-Performing Loans > 90 days / Gross Loans. 3) ROAA defined as Annualized Net Income / Total Assets Average. 4) ROAE defined as Annualized Net Income / Total Equity Average.

GROSS MARGIN AND NET PROFIT NET LOANS(1)

$58,140 +2.5% 1H2017 $11,119 $29,273 +4.3% $26,089 $10,658 2015 2014 1H2016 $50,928 $61,493 $28,570 $22,347 $20,313 2016 Gross Margin Net Profit $792,357 2015 2014 $684,704 +13.2% 1H2017 CAGR +8.1% $829,942 1H2016 $733,174 2016 $800,749

MAIN INDICATORS

Source: Tanner. Figures in million of Chilean pesos. 1) Net loans defined as net of provisions.

NET PROFIT BREAKDOWN (1H2016 vs. 1H2017) REVENUES 3

1H2017 1H2016 $63,681 $56,695 +12.3% $156,893 $144,053 2014 $124,926 2015 2016 $1,477 Op. Margin without Provisions

• $1,154

1H2016 $10,658 SG&A $377 Provisions and Write-Offs Subsidiaries 1H2017 Taxes +4.3% $1,215

• $1,454

$11,119

Negative Effect Positive Effect

BREAKDOWN BY TYPE OF CLIENT2) NET LOANS BREAKDOWN(1)

DIVERSIFICATION

TOTAL PORTFOLIO CONCENTRATION(3) ECONOMIC SECTOR DISTRIBUTION(2) 4

Source: Tanner. Figures in billion of Chilean pesos. 1) Net loans defined as net of provisions. 2) Does not include auto-financing clients. 3) Includes factoring, leasing, corporate loans and auto-financing.

30.4% +13.2% 1H2017 $ 830 3.0% 12.5% 24.5% 32.0% 28.0% $ 733 2.9% 24.3% 23.9% 31.6% 13.8% $ 793 12.5% 31.5% 3.5% $ 800 27.1% 3.0% 2015 38.5% 2016 2.5% 28.9% 30.3% $ 686 2014 14.1% 28.5% 1H2016 23.9% 14.7% 14.0% Factoring Others Leasing Corporate Loans Auto-Financing 8% 12%

Financial Institutions

7%

Construction Transportation, Warehousing and Communications

10%

Non-Metallic Manufacturing Industry

6%

Real Estate Agriculture and Forestry Education

3% 6%

Others 4%

3%

Fishery Metallic Manufacturing Industry

20%

Retail Trade

21% Top 5 Clients Top 25 Clients Top 15 Clients 28% 12% Top 35 Clients 34% 18% 29% Top 50 Clients 33% 43% 25% 20% 39%

December 2015

36% 27% 37% 86% 12% 2%

% CLIENTS % LOANS

SMEs Large Enterprises Corporations

Source: Tanner. Figures in billion of Chilean pesos. 1) Net loans defined as net of provisions. 2) Market Share calculated as Tanner net loans over industry total portfolio, taking on consideration only institutions that appear in chart “Loans by Company”. 3) Yield defined as annualized income/average net loans.

ECONOMIC SECTOR DISTRIBUTION NET LOANS(1), # CLIENTS AND MARKET SHARE(2)

$ 85 $ 651 $ 353 $ 219 $ 499 $ 187 $ 234 $ 232 $ 85 $ 12 $ 68 $ 33 $ 50 $ 63 $ 38

NET LOANS(1) BY INSTITUTION

Non-Banking Institution 2015 2016 13.9% 1H2017 1H2016 13.5% 15.5% 13.9% 2014 15.1%

FACTORING

5

2014 3,279 9.1% $264 2015 7.0% 8.3% 2,137 $209 1,880 8.3% $232 2,882 1H2016 $193 8.0% 2016 1H2017 2,548 $231 Clients Market Share Net Loans Others 5% 11%

Real Estate

11%

Non-Metallic Manufacturing Industry Metallic Manufacturing Industry

7% 4%

Fishery Agriculture and Forestry Education

19%

Retail Trade

4%

Transportation, Warehousing and Communications

30% 5% 5%

Construction

YIELD(3)

Data as of Dec-16

NET LOANS(1) AND # CLIENTS NET LOANS(1) BY INSTITUTION

AUTO-FINANCING

Source: Tanner. Figures in billion of Chilean pesos. 1) Net loans defined as net of provisions. 2) Yield defined as annualized income/average net loans. 3) Sales of new vehicles according to ANAC. Sales of used vehicles according to CAVEM.

INDUSTRY(3) YIELD(2)

24.6% 25.3% 2014 1H2016 1H2017 25.3% 24.6% 24.9% 2016 2015 $ 929 $ 266 $ 247 $ 115

6

47,820 49,704 $215 2014 2016 $266 52,386 1H2016 1H2017 $223 $242 2015 48,113 $217 49,610 Net Loans Clients 4.9 4.8 4.9 4.8 4.6 328 292 306 282 338 986 934 877 868 1,003 2014 2016 2015 1H2016 1H2017 Vehicles Fleet (Million) Thousand of New Vehicles Sold LTM Thousand of Used Vehicles Sold LTM

Source: Tanner. Figures in billion of Chilean pesos. 1) Net loans defined as net of provisions. 2) Yield defined as annualized income/average net loans.

NET LOANS(1) AND # CLIENTS PORTFOLIO CONCENTRATION ECONOMIC SECTOR DISTRIBUTION YIELD(2)

5.1% 2016 2015 8.5% 1H2016 8.3% 10.0% 2014 9.4% 1H2017

CORPORATE LENDING

57.4% Top 5 Clients 47.5% 84.5% 86.6% Top 20 Clients 60.9% 69.0% Top 10 Clients Top 30 Clients Top 50 Clients 80.0% 75.1% 82.3% 78.4% 1H2017 2015

7

$ 203 $ 175 $ 191 $ 95 971 1,257 2014 2015 1H2017 1H2016 2016 1,138 1,100 $ 250 Net Loans Clients 8%

Non-Metallic Manufacturing Industry Financial Institutions Retail Trade

45%

Education

6%

Real Estate

2%

Construction

10%

Fishery Agriculture and Forestry

9% 4% 13%

Others

4%

Source: Tanner. Figures in billion of Chilean pesos. 1) Net loans defined as net of provisions. 2) Yield defined as annualized income/average net loans.

NET LOANS(1) AND # CLIENTS PRODUCT BREAKDOWN ECONOMIC SECTOR DISTRIBUTION YIELD(3)

1H2017 11.3% 1H2016 12.1% 2016 12.4% 2015 12.7% 2014 14.7%

LEASING

8

Others

8%

Mine and Quarries Exploitation

3%

Hotels and Restaurants

3%

Metallic Manufacturing Industry

3%

Construction

10%

Real Estate 11% Agriculture and Forestry

13%

Retail Trade

13%

Financial Institutions

17%

Transportation, Warehousing and Communications

21% 34% 52% 29% 27% 37% 21% Machinery & Equipment Vehicles Real Estate $ 104 $ 111 1H2017 2015 968 1H2017 $ 104 34,1% 28,9% 37,0% 1H2016 $ 108 1.167 43,4% 31,1% 25,5% 2016 $ 110 1.072 38,8% 29,8% 31,4% 2015 $ 111 1.323 51,9% 27,2% 20,8% 2014 $ 86 1.387 57,1% 27,4% 15,5% Clients Machinery & Equipment Vehicles Real Estate

NPLs > 90 DAYS(1) – FACTORING NPLs > 90 DAYS(1) – AUTO-FINANCING

Without Pescanova Write-offs 360 days

8.2% 2014 0.0% 9.1% 7.4% 7.3% 1H2017 1.9% 1H2016 1.3% 1.5% 7.0% 0.6% 2016 2015 6.0% 2013 Corporate Lending Leasing

NON-PERFORMING LOANS

NPLs > 90 DAYS(1) – LEASING AND CORPORATE LENDING

Source: Tanner, other companies financial statements. 1) NPLs > 90 days defined as Non-Performing Loans > 90 days / Gross Loans. 2) Starting the second quarter of 2017, due to the resolution of the Pescanova arbitrage, the Company write-off this loan from the accounting.

NPLs > 90 DAYS(1) – TANNER CONSOLIDATED (2)

Without Pescanova

9

3.9% 4.4% 3.6% 4.8% 4.8% 2014 2013 5.5% 4.0% 4.7% 2016 4.3% 2015 4.0% 1H2016 3.6% 3.9% 1H2017 2.3% 1H2017 2.8% 5.5% 3.0% 1.8% 3.4% 6.3% 2.7% 1.6% 1.6% 1.8% 5.6% 2014 2013 2.4% 5.4% 2.6% 1H2016 1.5% 2.8% 2.5% 2015 2.2% 2.1% 2.5% 5.0% 2016 2.2% 4.5% 2.1% 2.6% 2016 5.2% 3.5% 4.2% 2.5% 4.3% 3.1% 6.7% 2013 10.2% 5.5% 4.7% 3.6% 2.3% 5.0% 5.6% 3.2% 2.5% 5.6% 5.1% 5.3% 2014 4.3% 5.7% 5.8% 2015 6.9% 5.1% 1H2017 3.0% 1H2016

 Conservative mismatch of assets and liabilities: ▪

Assets average duration: 1.0 year.

▪

Liabilities average duration: 1.9 years.

 Both assets and liabilities with no relevant exposure to interest

rates or foreign currency.

Total Financial Liabilities as of June, 2017 CLP 692,267 million (~ USD 1,042 million)

ASSETS AND LIABILITIES MANAGEMENT

DEBT PROFILE AND BALANCE

29,4 32,9 52,0 46,0 27,7 32,9 52,0 46,0 27,7

2019 2018 $77.7 $198.0 $23.8 $149.3 $3.6 2017 $20.6 $17.0 $27.1 $113.4 $25.3 $39.6 $163.8 2021 2020 +2021 $27.1 $88.1 $158.4 $169.3 $36.9 $30.9 $13.4 Others Bonds Commercial Paper Bank Loans

Source: Tanner. Figures in billion of Chilean pesos. 1) Assets fully hedged. 2) Equity included in liabilities.

CLP 35% UF 29% USD 25% CHF 11% CLP 43% UF 22% USD 25% CHF 10%

ASSETS(1) LIABILITIES(2)

10

1H2017 $ 692.3

65%

2016

27%

2014

3% 6%

2015 $ 510.8

14% 1%

$ 706.6

4% 72% 19% 5% 8% 23% 25% 4%

$ 642.9

61% 61%

DEBT EVOLUTION MATURITY PROFILE

ROAE(5) CURRENT RATIO(1) AND INTEREST COVERAGE(2)

FINANCIAL RATIOS

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

ROAA(6) LEVERAGE(3) AND CAPITALIZATION(4)

2.2% 1H2017 2015 2.3% 2014 2.3% 2016 1H2016 2.3% 3.4% Average 2014-2017: 2.7%

11

2014 2.4x 2.6x 2015 1.8x 1.8x 1.5x 2016 1.8x 1H2017 1.6x 2.0x 1H2016 1.8x 1.8x Interest Coverage Ratio Current Ratio 3.0x 2015 3.0x 0.2x 2014 2.6x 0.3x 0.2x 2.9x 0.3x 2.8x 2016 0.3x 1H2017 1H2016 Capitalization Leverage 2015 8.8% 2014 12.1% 8.7% 8.9% 1H2017 1H2016 2016 9.2% Average 2014-2016: 10.0%

STRATEGY

12 OUR MODEL… …ALLOWS US TO

✓ LEAD IN THE INDUSTRIES IN WHICH WE

OPERATE

✓ ACHIEVE AN >80% SECURED PORTFOLIO ✓ HAVE ESTABLISHED A LOW RISK, RESILIENT

BUSINESS MODEL

✓ ACHIEVE HIGH PROFITABILITY AND

GROWTH HIGHLY COMMITTED SHAREHOLDERS

CLIENTS UNDERSERVED

BY COMMERCIAL BANKS

SPEED IS OF THE ESSENCE

• DECISIONS IN <30 MINUTES
• 24/7 AVAILABILITY

OPERATIONAL EXCELLENCE CONSERVATIVE BALANCE SHEET:

✓ LEVERAGE < 3.0 x ✓ ACTIVE LIQUIDITY MANAGEMENT (DURATION / FUNDING / CREDIT RATINGS)

Contact Information:

María Gloria Timmermann Head of Investor Relations Huérfanos 863, 10th Floor, Santiago – Chile Operator: + 562 2674 7500 E-mail: maria.Timmermann@tanner.cl