Slide 1: MAPFRE and Banco do Brasil Update Their Strategic Alliance in the Insurance Business
MAPFRE AND BANCO DO BRASIL UPDATE THEIR STRATEGIC ALLIANCE IN THE INSURANCE BUSINESS June 26, 2018
Slide 2: Overview
OVERVIEW A corporate reorganization under which MAPFRE will control 100% of MAPFRE BB SH2 (“SH2”), which will be renamed MAPFRE SEGUROS and will include: o All the businesses from the traditional channel o The Auto business from the bank channel o The renewal rights of the Large Risks business fro
Slide 3: Consideration and Funding
CONSIDERATION The base price amounts to 2.406 billion Brazilian reals (578 million euros* at 03.31.2018 / 546 million euros at the current exchange rate), with adjustments to the price based on: Dividends until the operation closing date, once the relevant authorizations are received Annual ad
Slide 4: Structure of the Operation
STRUCTURE OF THE OPERATION Partial spin-off of BB MAPFRE SH1 (“SH1”) by means of the segregation of the shareholding in MAPFRE Vida, which will be absorbed by MAPFRE BB SH2 (“SH2”) Partial spin-off of MAPFRE BB SH2 (“SH2”) by means of the segregation of the shareholding in Aliança do Brasil Segu
Slide 5: Reallocation of Insurance Businesses Resulting from the Agreement
REALLOCATION OF INSURANCE BUSINESSES RESULTING FROM THE AGREEMENT MAPFRE SHAREHOLDING IN ENTITIES - % VARIATION SHAREHOLDING VARIATION ENTITY PREVIOUS NEW 75% MAPFRE VIDA (Life / Agent) 25% 100% 50% BRASIL VEÍCULOS (Auto / Bank) 50% 100% 50% MAPFRE SEGUROS GERAIS (Non-Life / Agent) 50% 100% -25% ALI
Slide 6: Previous Structure and Current Agreement
BB SH1 MAPFRE BB SH2 MAPFRE PREVIOUS STRUCTURE 75% 25% 50% 50% BANK CHANNEL MAPFRE BANK CHANNEL MAPFRE • Life • Life • Auto • Auto • Mortgage Life • Mortgage Life • Large Risks • Large Risks • Agro • Agro • SMEs • SMEs • Homeowners • Homeowners • Other • Other BB BB MAPFRE SH1 MAPFRE MAPFRE MAPFRE S
Slide 7: Capital Position
CAPITAL POSITION IFRS IMPACT: Exit of non-controlling interests, amounting to 402 million euros* Acquisitions of additional shareholdings do not generate goodwill or other intangibles, under IFRS The excess price over book value is directly accounted for against reserves, and at March 31, 2018
Slide 8: What Does the Agreement Represent for MAPFRE?
WHAT DOES THE AGREEMENT REPRESENT FOR MAPFRE? Significantly boosts its shareholding in the business in MAPFRE BRASIL 3-year objectives Brazil Increases the profit contribution Simplifies MAPFRE’s strategy execution in Brazil Leverages the MAPFRE brand in Brazil – the company Average growth
Slide 9: Investor Relations
Investor Relations Natalia Núñez Investor Relations and Capital Markets Director natalia.n@mapfre.com Antonio Triguero Leandra Clark Marta Sanchidrián Raquel Alfonso atriguero@mapfre.com clarkle@mapfre.com sanchim@mapfre.com asraque@mapfre.com
Slide 10: Contact us
Contact us If you are an investor or shareholder and would like to receive more information regarding the MAPFRE share or have questions regarding MAPFRE´s results and strategy, please find contact information below: Shareholders Investors Investor Relations MAPFRE S.A. 900 10 35 33 (Spain) (+34) 91
Slide 11: Disclaimer
Disclaimer This document is purely informative. Its content does not constitute, nor can it be interpreted as, an offer or an invitation to sell, exchange or buy, and it is not binding on the issuer in any way. The information about the plans of the Company, its evolution, its results and its divide