Grupo Supervielle Sa Class B · BCBA:SUPV
Grupo Supervielle Sa Class B — J.P. Morgan LatAm & CEEMEA SMid Cap Opportunities Conference 2019
45 slides from Grupo Supervielle Sa Class B's conference presentation, Jul 31, 2019
Slide 1: Supervielle Company Presentation, July 2019
SUPERVIELLE SUPERVIELLE PY cordial Automatica s.a. SUPERVIELLE SeGUROS July, 2019 y ii SUPERVIELLE a ASSET Q invertirOnline.com 1 mila
Slide 2: Disclaimer
COMPANY PRESENTATION j Disclaimer This presentation contains certain forward-looking statements that reflect the current views and/or expectations of Grupo Supervielle and its management with respect to its performance, business and future events. We use words such as “believe,” “anticipate,” “plan,
Slide 3: Supervielle
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Slide 4: Non-Intervention zone
Non-Intervention zone Since April 29, 2019 the Central Bank has changed its Fx intervention strategy 4
Slide 5: 10.0% (3.8)% 2.1% 14.1% 15.6% 28.4% (2.3)% 36.2%
10.0% (3.8)% 2.1% 14.1% 15.6% 28.4% (2.3)% 36.2% 5
Slide 6: Flexibility under volatile macro scenario
COMPANY PRESENTATION GRUPO - SUPERVIELLE J Flexibility under volatile macro Scenario Soft Loan Demand Loan Growth 2.1% QoQ 23.1% YoY Governance Deposits Growth / Funding eee eae Non interest bearing Deposits (ARS) 41% of total AR$ deposits Deposits Growth 15.6% QoQ 97.5% YoY Costs Control Assets Gro
Slide 7: Supervielle Strategy: One Client Vision
GRUPO a SUPERVIELLE J Supervielle Strategy: One Client Vision Corporate Consumer Banking Customers Finance Customers SUPERVIELLE Automatica sa. 1.4 Mill. 5K 400K ACTIVE CUSTOMERS Insurance SUPERVIELLE ELLE USER EXPERIENCE Asset Management SUPERVIELLE DIGITAL TRANSFORMATION AND EFFICIENCY Online Brok
Slide 8: Our Digital Agenda
GRUPO a SUPERVIELLE | Our Digital Agenda = Customer Episodes / Routine transactions in branches = Digital Onboarding = Cash Management = Initiatives to drive higher efficiency in Senior Citizens Branches = A leaner and more agile management structure that facilitates synergies across the platform =
Slide 9: Supervielle
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Slide 10: Supervielle 2019 guidance
Supervielle 2019 guidance gare re Annual guidance in more challenging economic backdrop FY 2019 EXPECTATIONS Guidance BD changes in Macro Assumptions Total Loan Growth? 21-31% M Cost of Risk 5.0-5.8% GDP 3 Inflation 3 Badlar Rate (eop) 4 Monetary policy Rate (eop) 3 FX Ar$ (eop) 3 48 50 18.5 - 20.5%
Slide 11: First quarter 2019 highlights
COMPANY PRESENTATION First quarter 2019 highlights aura, Pe | 1Q19 results track in line with annual guidance in challenging macro environment; further strengthening the Company's position for long-term success Net Financial Income up 51.2% YoY and 4.2% QoQ reflecting higher asset & deposit volumes.
Slide 12: 163,849 163,849 146,123 141,115 146,123 141,115 120,789 120,789 96,570 96,570 12
163,849 163,849 146,123 141,115 146,123 141,115 120,789 120,789 96,570 96,570 12
Slide 13: 83,378 80,172 81,827 75,830 66,480
83,378 80,172 81,827 75,830 66,480 13
Slide 14: Supervielle loan performance
COMPANY PRESENTATION GRUPO - ] Supervielle loan performance SUPERVIELLE Soft market demand across all segments, combined with AR$ appreciation on US$-denominated loans and risk management focus weighs on loan book | | TOTAL LOAN PORTFOLIO BREAKDOWN BY SEGMENT Loans & Leasing Portfolio [AR$ Mill.]” C
Slide 15: 97,185 94,906 109,677 75,673 55,540
97,185 94,906 109,677 75,673 55,540 15
Slide 16: Funding & deposit base
Funding & deposit base sont | Actively managing wholesale & institutional deposit base to maximize spread in current environment BBP Funoine cars mils 15.6% 24.0% 215% (3.7% [115,476 | mar 18 jun 18 sep 18 Dec 18 Mar 19 = Deposits ™ Other Fis & Subordinated Negotiable Obligations!) ™ Shareholders eq
Slide 17: Net Financial Income & NIM
GRUPO a SUPERVIELLE Net Financial Income & NIM Net Financial Income up 4% QoQ from higher avg. asset & deposit volumes. Loans to assets ratio down 690 bps QoQ to 50% drives NIM contraction, despite AR$ Loan NIM increasing 70 bps | AS Financial Income [AR$ Mill. | NIM (%] TOTAL 19.8 17.3 18.2 20.3 19
Slide 18: Service fee income & income from insurance activities
COMPANY PRESENTATION 1) Excludesincome from insuranceactivities * Net services fee income + Income from insurance activities divided by the sum of Net interest income + Net income from financial instruments at fair value through profit or loss + Exchange rate differences on gold and foreign currency
Slide 19: Credit card, personal loans and retail NPL
Credit Card Loans NPL Credit Card Loans Delinquency +90 Personal Loans NPL Personal Loans Delinquency +90 Retail Segment NPL Retail Segment Delinquency • • 19
Slide 20: Asset quality consumer finance
Asset quality consumer finance GRUPO a SUPERVIELLE Reflecting earlier actions to tighten credit scoring standards, NPL creation and 3-month vintage remain below peak levels of 1H18 despite the overall weaker environment. BBP «30 DAYS DELINQUENCY, 3 MONTH VINTAGE Mar 17 Apr17 May 17 Jun 17 Jul 17 Aug
Slide 21: Efficiency
*Efficiency: Personnel, Administrative expenses and Depreciation & Amortization divided by the sum of Net interest income + Net income from financial instruments at fair value through profit or loss + Exchange rate differences on gold and foreign currency, net services fee income, income from insura
Slide 22: • 874,5 935.3 615.4 744.8 • 475.3
• 874,5 935.3 615.4 744.8 • 475.3 22
Slide 23: Capitalization
Capitalization GRUPO a SUPERVIELLE 80-bps sequential decrease in 1Q19 capital ratios following deferred tax, AR$ depreciation in the quarter and IFRS 16 implementation BBD PITAL DEPLOYMENT [Tier | ratio %1 1° 08 04 oH we Wh -0,4 a = me ~ . 12,1 TIER1 Capital Capital RWA Deferred Fx Impact on Other T
Slide 24: Supervielle
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Slide 25: Why Supervielle
GRUPO a SUPERVIELLE Js WHY SUPERVIELLE > Argentina: towards Fiscal Sustainability Great > Financial Sector: POTENTIAL Growth Potential Intact going into the >sUPV FUTU RE Operating Leverage Differentiated Strategy to Capture Growth Leadership in Relevant Products and Markets 25
Slide 26: Argentine banking business has potential for a growth cycle
COMPANY PRESENTATION The Argentine banking business has the potential for a growth cycle when the economy rebounds | Under-developed Banking & Insurance System S argentina 15 Loans to the Private Sector as a % of GDP (%) as of December 2017 except Brazil (as of Dec-16) Insurance Premiums Written?” L
Slide 27: Small industry size and low leverage levels
GRUPO a SUPERVIELLE Small industry size and low leverage levels with ample room for growth | { ARGENTINA: Third largest economy of Latin America but small industry size brazil @Pmexico Sargentina @ Colombia GSrrile (@) Peru > Small financial 246,4 ro) industry 01,4 31] es considering the u—" . size
Slide 28: Competition
GRUPO a SUPERVIELLE Ranking Competition | Financial System in million of Ps as of March 2019 Argentine Financial fegentne Erne stem nema y “ Deposits Assets Share Deposits ) Share: Banco de la Nacién Argentina S.A. 371,088.8 15.8% 1,217,369.4 20.3% 998,872.9 22.8% Banco de Galicia y Buenos Aires S.A
Slide 29: Supervielle Seguros
8th Private Bank in terms SUPV of Loans as of Follow On Mar 2019 Supervielle Seguros 29
Slide 30: Nationwide Network & Leadership in Core Products
GRUPO a SUPERVIELLE ] Nationwide Network & Leadership in Core Products Strong origination capacity for growth with the new capital DISTRIBUTION NETWORK AND CLIENT LEADERSHIP IN CORE PRODUCTS BASE WITH STRONG GROWTH POTENTIAL WITH COMPETITIVE ADVANTAGE . y CQeoraiat . SUPERVIELLE : = Branches: 204 =
Slide 31: Looking forward, Supervielle ranks high in KSF
| Looking forward, Supervielle ranks high in KSF GRUPO a SUPERVIELLE GROWTH customer DIVERSIFIED strategy base deposit base | Clear | | SIZEABLE | STRONG PRUDENT management to capital digital Avenues | ACCESS | transformation AGGRESSIVE | GROWTH Empowerment, FLEXIBILITY and FAST DECISIONS 31
Slide 32: Supervielle
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Slide 33: Key Macro Indicators 2018
GRUPO a SUPERVIELLE J Key Macro Indicators 006 2018 GDP real growth (%) 80 90 41 (59) 101 60 0) 24 «29@5) 27 «2 27 5) (68) Ga) Primary fiscal balance (excludes | > 9 25 25 12 14 02 (02) 7) (9) (27) (43) G9 (26) OD) interest) (as a % of GDP) Total public debt (as a % of GDP) Trade balance (in million
Slide 34: 1,300 bps Since Feb 2019 Since July 2019
1,300 bps *Minimum reserve requirements for new time deposits since Oct 1 to Jan31, 2019 are set up 100% in leliqs Since Feb 2019 Since July 2019 34
Slide 35: Lebac and Leliq
11.3% As % of GDP 1,389.3 1,374.3 8.1% 1,340.8 As % of GDP 1,298.6 1,254.8 6.7% 1,111.8 1,121.4 As % of GDPe 1,072.5 1,070.3 5.6% As % of GDP 5.0% 982.2 931.1 As % of GDP 927.6 942.8 854.5 825.0 774.8 788.5 773.4 744,0 709.1 722.4 Lebac (Financial Entities) Lebac (Non Financial Entities) Leliq 35
Slide 36: Capital & Liquidity
COMPANY PRESENTATION Capital & Liquidity BD ar itauization )-2. morse [sax] [82x] [39%] fe6%] [ox [1326] anticyclical buffer > +10.5% including conservation buffer ** 90 bps of additional CET1 remains at Grupo Supervielle > 8.0% Total capital regulatory minimum > 6.0% Tier | regulatory minimurtiiexe
Slide 37: Assets & liabilities repricing dynamics
COMPANY PRESENTATION Assets & liabilities repricing dynamics equee,e | While AR$ liabilities reprice in an average of 35 days, AR$ total Assets are fully repriced in 154 days, and AR$ loans are fully repriced in an average term of approximately 257 days Avg. Repricing % of (GEW79) AR$ Assets Total A
Slide 38: Interest Rates & Securities Breakdown
COMPANY PRESENTATION GRUPO a SUPERVIELLE J Interest Rates & Securities Breakdown BBP in teREST RATES (961 Interest earned on Loans 39.7% 42.1% 33.8% 30.9% 29.7% (234) 1,008 AR$ 52.1% 55.0% 44.2% 38.4% 36.0% (286) 1,612 U$S | 6.8% 7.2% 6.1% 5.6% 47% (42) 207 | Yield on Investment Porfolio 51.2% 48.2%
Slide 39: Interest Earning Assets
Interest Earning Assets Investment Portfolio Government and Corporate Securities Securities Issued by the Central Bank Total Investment Portfolio Loans Loans to the Financial Sector Overdrafts Promissory Notes Mortgage loans Automobile and Other Secured Loans Retail Banking Personal Loans Consumer F
Slide 40: Interest Bearing Liabilities
Interest Bearing Liabilities Time Deposits AR$ Time Deposits Fx Time Deposits Special Checking Accounts AR$ Special Checking Accounts Fx Special Checking Accounts Borrowings from Other Fin. Inst. & Unsub Negotiable Obligations Subordinated Loans & Negotiable Obligations Total Interest-Bearing Liabil
Slide 41: 410,456 427,760 432,668 432,668 369,227 421,725 385,131 326,765 238,814 64,231 91,919 90,253 102,321 101,932
410,456 427,760 432,668 432,668 369,227 421,725 385,131 326,765 238,814 64,231 91,919 90,253 102,321 101,932 53,328 56,629 22,457 69,804 496,663 498,128 505,975 521,106 532,412 545,151 571,211 641,893 668,068 9,686 5,569 3,387 3,565 13,368 4,558 3,659 2,885 3,731 36,127 30,052 29,890 30,339 30,959 3
Slide 42: Ratios
Ratios Key Indicators - Quarterly Profitability ROAE ROAA Net Interest Margin Net Fee Income Ratio Cost / Assets Efficiency Ratio Liquidity & Capital Loans to Total Deposits! Liquidity Coverage Ratio (LCR)? Total Equity / Total Assets Proforma Consolidated Capital / Risk weighted assets Proforma Con
Slide 43: Supervielle loan portfolio
GRUPO a Families and individuals Commerce Civil Construction Services Manufactures Chemicals & Plastics Oil, Gas & Mining Primary Production Electricity & Water Fruits & Vegetables Sugar Wine Industry Cereals Food & Beverage Vehicles Supervielle loan portfolio SUPERVIELLE Highly atomized, diversifie
Slide 44: novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble
novation Simplicity Nunbte Commitment Respect Efficiency Innovation Simplicity Nimble 2 Commitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Effie niitment Respect Efficiency Innovation Simplicity Nimble Commitment Respect Efficiency | Efficiency Innovation Simplicity Nimble
Slide 45: Grupo Supervielle
GRUPO | a SUPERVIELLE
Grupo Supervielle — J.P. Morgan LatAm & CEEMEA SMid Cap Opportunities Conference 2019 on 6ix