Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — Merger or Acquisition (January 2022)
53 slides from Grupo Aval Acciones Y Valores Sa's merger presentation, Jan 31, 2022
Slide 1: BdB Spin-Off
BDB SPIN-OFF Current Structure ‘Structure After Spin-off ss eins asses eerie ise toe g & & 8 @ cam al = Bogota 5 BF — a anes, ete, 2 2
Slide 2: Aval Spin-Off
AVAL SPIN-OFF Structure after BdeB Spin-Off Structure after Grupo Aval Spin-Off sro mins, ro ans 3 & & AVAL AVAL vente £ %, m4 ? * 6 Socinded aided = se 2 ie ogors aL BH ec Heting enc toting ecnatiaoa Cop seat Cop
Slide 3: Merger and listing of BHI shares
h. Once the Merger is concluded, BHI previously registered in the National Registry of Securities and Issuers -RNVE- of the SFC, will list its shares in the Colombian Stock Exchange (Bolsa de Valores de Colombia). Prior to such listing, the aforementioned company will be listed on the Panama Stock E
Slide 4: Grupo Aval
Source: Grupo Aval 3. Parts involved in the Transaction 3.1. Grupo Aval Grupo Aval Acciones y Valores S.A. (hereinafter the "Company" or "Grupo Aval") is a corporation that was incorporated by Public Deed number 0043 of January 7, 1994; its domicile is located at Carrera 13 No. 26A - 47, Bogotá, D.C
Slide 5: Financial Statements Grupo Aval
Source: Financial Statements Grupo Aval 3.2. Sociedad Beneficiaria Aval S.A.S. Sociedad Beneficiaria Aval S.A.S. is a company incorporated for the purpose of acting as beneficiary company of the spin-off of Grupo Aval and its subsequent merger with BHI. Its equity corresponds to 68.74% of the shares
Slide 6: Nominal GDP growth vs Gross loans
Source: Colombian Superintendency of Finance Nominal GDP growth vs Gross loans
Slide 7: Consumer gross loans
Source: Colombian Superintendency of Finance Consumer gross loans (Ps billions)
Slide 8: Mortgages gross loans
Source: Colombian Superintendency of Finance Mortgages gross loans (Ps billions)
Slide 9: Commercial gross loans growth
Source: Colombian Superintendency of Finance Commercial gross loans growth
Slide 10: Saving accounts, time deposits and checking accounts composition
Source: Colombian Superintendency of Finance Saving accounts, time deposits and checking accounts composition
Slide 11: Time deposits
Source: Colombian Superintendency of Finance Time deposits (Ps. billions)
Slide 12: Checking accounts
Source: Colombian Superintendency of Finance Checking accounts (Ps. Billions)
Slide 13: Source: Colombian Superintendency of Finance
Source: Colombian Superintendency of Finance
Slide 14: Total Solvency Ratio
Source: Colombian Superintendency of Finance Total Solvency Ratio (%)
Slide 15: Market Cap, Volume, Dividend Yield
‘Market Cap Volumen (USD mm) Div Yield ROEZI€ “UsOmm) Tae tmes_2te(%) a wr Bs 3m ne ee ee) ms aM as ne % 5 4 ow cd 43 300 uo 4s a a 2s 4 aim 3 3 on ee, ee m4 wos ® 28 1 2 0 2 1 251 a) s 7 ow or Ce er er) 3 mB wi am Re ei on 3 438 4 a 2 g 70s en 00]
Slide 16: Regional bank peer comparison
BVA Argentina GF caica Macro Supervele Chile Banco de cite 2s mor a woes Santander Che asi oan 72 ame Compares ra te [Chile B59, 6 EC a Ea 7) Mesa Bonor 126) Mb NI 17S MOL waBK ame 90x Mw SartanderMenco $8 10s 072 O7 G85 Az 751 6x 109m km Boncocelboio, 348 12 age 4455 MOSe ke Tax 007 OS Banrego Nas
Slide 17: Methodology of valuation
Source: Feedback from 2021 Latam London Conference – Morgan Stanley (Sep 20,2021) 7. Methodology of valuation 7.1. Projection methodology for financial statements In this section, we detail the valuation methodology implemented by Metrix Finanzas. This methodology was executed calculating the presen
Slide 18: Gross loans growth projections
Gross loans growth 2021p 2.022p 2.023 2.024p 2025p 2.026p Merigege leans p wee ‘consumes loans p ee a a Td commercial loans p Bay BOBO Total a a a Lean portfolio composition ZozIp —_-202p «202% —«2O2p ~—«DURSH_—-.02Hp Mortgage leans p Fo a ~CSRSCSCMODRSCOSH ‘consumes loans p Cr a nd commercial losne
Slide 19: Gross loans growth projections
Gross loans growth 2021p —-2.022p —2.023p 2.024 2.025p 2026p Merigage leans p a ed ‘consumes loans p 105% om 8m 82s om os commercial losne @ oa om ome 8am oe 628 Total Te 6% 65% 65s 6 65% Lean portfolio composition 202Ip «2.022 «2073p ~—«2O2-—«OASp —«.02 Merigege leans om om oe TOROS ‘consumes loans
Slide 20: Gross loans growth projections
Gross loans growth 2021p 2.02 —2.023p 2.024 —-2.025p ——2.026p Mengage lens p 7% 07% —*2 ~~ +A ~~ OA Consumerloans p 136% 988 BR BR BRB Commercialloans p 13% 31% RBI Tol sas +4798 ”~«RSSC*«w TSC {Loan portfolio composition 2021p 2.02 2023p «2.02 ~—-2.025p —-2.026p Mongage lens p ae 47RCABRSSC«CSRSOS*
Slide 21: Projection results by entity: Banco de Bogotá
7.5. Projection results by entity. 7.5.1. Banco de Bogotá Founded in 1870, Banco de Bogotá S.A. is the oldest financial institution in Colombia. It is a subsidiary of Grupo Aval, the leading financial group in Colombia. Banco de Bogotá covers the entire national territory and develops international
Slide 22: Source:
Source: Colombian Superintendency of Finance
Slide 23: Projections from Metrix Finanzas
Source: Colombian Superintendency of Finance and projections from Metrix Finanzas
Slide 24: Equity method of accounting
Source: Colombian Superintendency of Finance and projections from Metrix Finanzas Equity method of accounting + BHI: Metrix Finanzas conducted an independent valuation of BHI, the results of which are presented in this report. From this valuation, the value of the Profit Sharing Method (MPU) was tak
Slide 25: Projections from Metrix Finanzas
Source: Projections from Metrix Finanzas
Slide 26: BAC Credomatic
Source: Colombian Superintendency of Finance and projections from Metrix Finanzas 7.5.2. BAC Credomatic Grupo BAC Credomatic is one of the leading financial holding companies in Central America. Through its subsidiary banks, it offers financial services in El Salvador, Guatemala, Honduras, Nicaragua
Slide 27: Sioa ae eer ees
Sioa ae eer ees Peegieeemumennsimmes ane Tge ie LSS aoe
Slide 28: Total loans, interest rates and NIM
6 0 Total Loans, net (USO billons) 2017 2018 2019 2020 2021 2022 2023 O24 2025 2626 Interest rates (loans) (EAR %) ras 128 13% | | | Wil 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 NIM (USD billons) 2017 2oi8 2019 2020 2021 2022 2023 2024 2028. 2026 NIM (8) 708 69% 708 THI 2017 2o18 2019 2020
Slide 29: ROA, cost of risk, ROE, solvency ratio
Sa ave see w nee ROA(®) a 7 ee 16 16k Le Tee 7% 2017 2018 2019 2020 2071 2022 2023 Dams 2025 2006 ‘cost of Risk (%) 268 cas 2a 2m Day ili il | [| 2017 2018 2019 2020 2671 2022 2023 2aR4 2025 2006 1s 10% us 1 108 BRRSR ROE(*) TSO 157% r4gy THAN TES 15H 1528 TSO 1a8N LTT 2017 2018 2019 2020 2071 2072
Slide 30: Banco de Occidente
7.5.3. Banco De Occidente Founded in 1965 in Cali, Banco de Occidente belongs to Grupo Aval Acciones y Valores, which owns 72.3% of the bank. It currently has a network of 195 branches in Colombia, as well as subsidiaries in Panama and Barbados.
Slide 31: Source: Colombian Superintendency of Finance
Source: Colombian Superintendency of Finance
Slide 32: Source: Colombian Superintendency of Finance
Source: Colombian Superintendency of Finance
Slide 33: Metrix Finanzas projections
Source: Colombian Superintendency of Finance and Metrix Finanzas projections
Slide 34: Banco Popular
Source: Colombian Superintendency of Finance and Metrix Finanzas projections 7.5.4. Banco Popular Incorporated in 1950, started operations in Manizales. Up to the date has a network of over 200 branches. Grupo Aval Acciones y Valores S.A. is the main shareholder of the bank with a stake of 93,7%.
Slide 35: Source:
Source: Colombian Superintendency of Finance
Slide 36: Metrix Finanzas projections
Source: Colombian Superintendency of Finance and Metrix Finanzas projections
Slide 37: Metrix Finanzas projections
Source: Colombian Superintendency of Finance and Metrix Finanzas projections
Slide 38: Banco AV Villas
Source: Colombian Superintendency of Finance and Metrix Finanzas projections 7.5.5. Banco AV Villas Incorporated in 1972 as “Corporación de Ahorro y Vivienda 4 Las Villas” and in 1997 it became a subsidiary of Grupo Aval Acciones y Valores. Initially founded as a specialized bank for the financing o
Slide 39: Source:
Source: Colombian Superintendency of Finance
Slide 40: Metrix Finanzas projections
Source: Colombian Superintendency of Finance and Metrix Finanzas projections 4 The equivalent to a Thrift. A specialized financial entity in Home Loans.
Slide 41: Metrix Finanzas projections
Source: Colombian Superintendency of Finance and Metrix Finanzas projections
Slide 42: Corficolombiana
Source: Colombian Superintendency of Finance and Metrix Finanzas projections 7.5.6. Corficolombiana Metrix Finance used financial information from the financial institution as of October 2021. The financial information as of October 2021 was taken from the interim financial statements provided by Gr
Slide 43: Infrastructure, Hospitality, Financials
Infrastructure Hospitality Financials OS Yea ESTELAR CasadeBolsa
Slide 44: Corficolombiana Summary of projections
Source: Corficolombiana Summary of projections
Slide 45: Assets, net income and liabilities
Assets (Ps. Billions) 7a268 sat as mas vane 2017 zp1e 2019 20m 20m 2022 20m DON 2025 20% 25n20 Net income (Ps. Billions) 1608 505 eS Te 1516 4499 1534 = 1 | | | | f 2or7 2018 2019 2020 2021 2022 2000 2024 2005 202% 2000 599s 6023 207 2018 Liabilities (Ps. Billions) arma 9996 10236 10408 TOTS e260 St
Slide 46: Porvenir
Source: Corficolombiana 7.5.7 Porvenir Incorporated in 1991 as a pension fund. Its current functions include the administration of pension and severance funds, as well as the administration of the trusts 5 constituted by the territorial entities. Among its main shareholders are Banco de Bogotá (36.5
Slide 47: Deloitte valuation of Porvenir
Source: Deloitte valuation of Porvenir
Slide 48: Deloitte valuation of Porvenir
Source: Deloitte valuation of Porvenir 5 “Patrimonios Autónomos” for its denomination in Spanish.
Slide 49: Deloitte valuation of Porvenir
Source: Deloitte valuation of Porvenir
Slide 50: Grupo Aval valuation results
Source: Deloitte valuation of Porvenir 8. Grupo Aval valuation results Grupo Aval Acciones y Valores S.A. is the holding company of Aval Financial Conglomerate, one of the main financial groups in Latin America, with presence in 12 countries. Grupo Aval is one of the largest financial groups in Colo
Slide 51: Grupo Aval and projections from Metrix Finanzas
Source: Grupo Aval and projections from Metrix Finanzas
Slide 52: Grupo Aval and projections from Metrix Finanzas
Source: Grupo Aval and projections from Metrix Finanzas
Slide 53: Representative market exchange rate (TRM)
Representative market exchange rate (TRM) June 30, 2021 = 3,756.67 / TRM October 31, 2021 = 3,784.44 / TRM November 30, 2021 = 4,010.98 8.2.4. Grupo Aval valuation:
Grupo Aval Acciones y Valores — Merger or Acquisition (January 2022) on 6ix