Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA

Grupo De Inversiones Suramericana — Investor Presentation (December 2022)

35 slides from Grupo De Inversiones Suramericana's investor presentation, December 2022

  1. Slide 1: Corporate Presentation December 2022

    Corporate : Presentation \) December 2022 A»)

  2. Slide 2: Forward-looking statements and figures notice

    The forward-looking statements contained herein are based on Management’s current forecasts and outlook, which have been made under assumptions and estimates of the management of the Companies and may present variations. For better illustration and decision-making, figures for Suramericana, SURA Ass

  3. Slide 3: Grupo SURA

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  4. Slide 4: Industrial and financial services portfolio

    FINANCIAL SERVICES INDUSTRIAL 83.6% 81.1% 46.2% | 24.5% 35.6% 35.9% | 27.2% #1 PENSION FUND #1 INSURANCE #1 COLOMBIAN #1 PROCESSED INFRASTRUCTURE MANAGER COMPANY BANK FOOD ASSET MANAGER in Latam, with a growing in Colombia, with an with a leading presence company in Colombia, With focus in Cement, v

  5. Slide 5: Profitable growth and expansion throughout Latam

    Profitable growth and expansión throught latam 1990 / 2007 2017 / 2022 1944 / 1990 2007 / 2016 FOOTPRINT OPTIMIZATION LEADERSHIP IN INSURANCE FINANCIAL SERVICES INTERNATIONAL EXPANSION • Organic growth in Colombia Leader in Colombia Multi Latin, financial ~ USD 3.1 bn (Revenue increase 2017 – 2022 L

  6. Slide 6: One of the largest footprints in financial services in LATAM

    One of the largest footprint on financial services in LATAM COUNTRIES CLIENTS EMPLOYEES 11 +67MM +64K EQUITY USD 7.4 bn ASSETS USD 20.5 bn MARKET CAP USD 4.4 bn % share of dividends by country* USA Others 4% 10% #1 in Colombia #1 Pension Fund #1 Bank in Colombia and a Panama #3 Latin America Manager

  7. Slide 7: An investment management organization

    AN INVESTMENT Who are we? Development is only MANAGEMENT sustainable in the long ORGANIZATION term if it is harmonious. What is our strategic objective? OBTAIN SUSTAINABLE LEVELS OF PROFITABILITY Generating Based on the harmonious economic value development of society OUR OWN APPLIED What makes us d

  8. Slide 8: Why invest in us?

    Why invest in us? As an Investment Manager we create economic value and help ensure harmonious level of development for our society with a portfolio with the following characteristics: Industries ✓ Long term vision Maturity ✓ Leading brands Stages Balanced ✓ Low penetration industries Portafolio ✓ H

  9. Slide 9: We manage capitals

    We manage capitals VALUE GENERATION We believe in a comprehensive Social Human view of the Company's Capital Capital management, around the maintenance and increase of capitals. Sustainable Profitability Adequate and balanced management is what really Natural Financial contributes to the generation

  10. Slide 10: Strategy

    Our commitment to the harmonic development of society Financial Capital Strategy 1 1 Capital sources*: Debt and equity issuances in capital markets for + USD 4 bn Shareholders 2 Capital allocation* and Acquisitions in the region for capital + USD 8.8 bn We build, develop and manage a structure balan

  11. Slide 11: Growth sustained over time despite pandemic's impact

    Total Revenues Insurance premiums Commission income CAGR: 12% CAGR: 17% CAGR: 9% 7,367 7,457 5,845 5,012 5,284 4,905 829 4,311 4,417 4,544 764 4,174 3,645 642 669 3,187 3,117 553 588 2,908 507 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Eq

  12. Slide 12: With a healthy post-covid recovery

    With a healthy post-covid recovery Dividends received by Grupo SURA USD MM (holding)* 392 243 247 265 224 209 184 193 141 157 109 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E Bancolombia Suramericana Sura AM Grupo Argos Nutresa Sura AM Holding company cash flow 2023 USD MM (e) 392 36 134

  13. Slide 13: Debt profile aligned with cash flow generation

    Debt profile aligned with cash flow generation Debt profile COP denominated debt (in COP MM) 530 Individual Net Debt* COP 838,361 MM USD (174 MM) 2,601,194 COP 4.4 tn (USD 871 mm) 1,762,833 114 117 47 62 60 37 62 - 21 - - - 20 2023 2024 2025 2026 2027 … 2029 2030 … 2032 … 2040 … 2049 Banks Local Bon

  14. Slide 14: Suramericana and SURA AM debt profile

    Suramericana debt profile ✓ Local Rating AAA (S&P) 64 64 60 Debt 24 USD 243 mm 10 9 - Double Leverage: 118.7% 2023 2024 2025 2026 2027 … 2031 Banks Local Bonds SURA AM debt profile ✓ International Ratings Baa1 (Moody´s) / BBB (Fitch) 500 Debt 350 USD 850 mm Net Debt / EBITDA : 2.4 x - - - - 2022 202

  15. Slide 15: Delivery 2022 & guidance 2023

    Exceeding expectations at the beginning of the year due to a better performance of the investment portfolio Delivery 2022 & guidance 2023 2022 2023 Controlling +47% +10%-15% vs +10-15% Net Income Debt / Receibed 3.9x <3x Dividends vs 3.7x-4.3x Adjusted ROE 9.9% 9% - 10% vs 8% - 9% Figures in COP tri

  16. Slide 16: Suramericana

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  17. Slide 17: Market leader in insurance industry

    Market leader on Insurance Industry and trends and risk 5% 2% management 2% 2% COUNTRIES CLIENTS EMPLOYEES 68% 9 +21MM +22K DIVERSIFIED GEOGRAPHIC FOOTPRINT IN A LOW PENETRATED MARKET P&C Life Health 3% 41% 27% 32% % share of WP by country WRITTEN PREMIUMS* USD 6.4 bn 11% 18.9% Strategic Shareholder

  18. Slide 18: Financial results impacted by COVID claims in 2020 and 2021

    Written premiums Retained Claims Expense efficiency ratio 10, 000 16.6% CAGR: 15% 9, 000 70.8% 72.2% 15.3% 15.6% 14.6% 65.1% 65.4% 63.1% 64.2% 65.2% 13.4% 6,355 8, 000 11.8% 12.0% 7, 000 5,120 6, 000 61.6% 4,396 57.9% 4,009 5, 000 3,452 3,548 2,809 4, 000 3,649 2,538 3, 000 1,842 1,835 2,150 2,045 2

  19. Slide 19: Suramericana 2022 delivery and 2023 guidance

    Profitability with above-budget delivery. Double-digit growth expectations for 2023 continue with a change in the mix of solutions impacting the loss ratio 2022 2023 +24.4% 13% - 16% Written Premiums vs +11-13% Claims Ratio 72.2% 72% - 74% vs 70%-71% Adm. Expenses/ 12% 11% - 12% Written Premiums vs

  20. Slide 20: SURA AM

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  21. Slide 21: Leading Latin American asset manager

    30% Leading Latin American Asset Manager in charge of pension funds, asset management and investment advise. 5% 21% COUNTRIES CLIENTS EMPLOYEES 6 +23MM +8K +3MM 9% RETIREMENT SAVINGS VOLUNTARY SAVINGS INVESTMENT MANAGEMENT AUM AUM AUM USD 120 bn USD 12 bn USD 12 bn* % share of AUM by country 88% CLI

  22. Slide 22: Commission income and profitability

    Commision Income Commision income by segment Return on legal reserve CAGR: 7% CAGR Mandatory: 5.4% CAGR Voluntary: 19% 11.4% 667 111 624 95 0.5% 549 54 64 76 7.6% 539 39 49 6.7% 463 491 5.6% 444 529 556 3.7% 405 414 437 473 473 1.4% 24 52 4 94 63 40 9 2016 2017 2018 2019 2020 2021 2022 2016 2017 201

  23. Slide 23: SURA AM 2022 delivery and 2023 guidance

    Profitability impacted by negative yields in the macroeconomic context. Recovery in 2023 due to expectations of lower interest rates and inflation 2022 2023 (0.3%) 9% - 11% AUM vs +10-12% Commission income (8.3%) 26% - 29% vs (2%) - (5%) Adjusted ROE 5.1% 6% - 7% vs 6% - 7% ROTE 15.4% 17% - 21% vs 2

  24. Slide 24: Bancolombia

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  25. Slide 25: Leader financial institution

    Leader financial institution COUNTRIES CLIENTS EMPLOYEES 6 +25MM +31K LISTED IN NYSE SINCE 1995 17.6 MM 47% 372 MM Active Digital Users Colombian Digital transactions Monetary Transactions ASSETS USD 73.3 bn #1 MOST RECOGNIZED AND BEST EQUITY USD 8.1 bn REPUTATION BRAND IN MARKET CAP USD 7.7 bn COLO

  26. Slide 26: ROE to continue improving with loan growth and NIM expansion

    ROE to continue improving as a result of loan growth and NIM expansion Loans NIM CAGR: 10% 54,086 2023 40,479 6.8% 35,623 36,338 6.0% 6.1% 5.7% 5.7% 30,170 31,650 34,008 5.2% 5.0% Loan growth 4% - 6% 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 NIM 6.5% - 6.7% Net Income Adj

  27. Slide 27: Grupo Argos

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  28. Slide 28: Infrastructure investment manager and cement leader

    Infrastructure investment manager of reference in the American continent, leader in the cement business COUNTRIES FITCH RATINGS EMPLOYEES 18 AAA +13K #1 cement and 43% of non-conventional Operates road and concrete in Colombia renewable capacity under airport concession development in Colombia. busi

  29. Slide 29: Revenues, EBITDA, net income and assets

    Total revenues EBITDA CAGR: 7% CAGR: 6% 5,015 1,227 2023 1,125 3,948 3,833 1,019 3,420 3,425 918 932 3,364 3,288 851 788 Total revenues COP 22.0 - 22.5 tn 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 EBITDA COP 5.2 – 5.5 tn Net Income Assets CAGR: 4% CAGR: 4% 338 11,838 295

  30. Slide 30: Grupo Nutresa

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  31. Slide 31: Largest processed foods group in Colombia

    Largest processed foods group in Colombia with leading brands in the main categories. COUNTRIES INTERNATIONAL EMPLOYEES SALES 17 39% +45K +100 #1 19 +53,8% Years DJSI Branches Market 2021 Share Colombia ASSETS USD 4.3 bn EQUITY USD 2.2 bn EBITDA* USD 463 MM MARKET CAP USD 4.3 bn *Figures Last Twelve

  32. Slide 32: Revenues, EBITDA and net debt

    Total revenues Gross profit | Gross profit Margin CAGR: 8% 4,004 44.9% 44.1% 42.8% 44.2% 41.9% 40.3% 36.6% 2030 2,993 2,615 2,340 1,466 2,039 2,043 2,119 1,205 872 902 951 1,032 1,096 Revenues 2x sales achieved in 2020 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 ROIC > Ke E

  33. Slide 33: Annexes

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  34. Slide 34: Pension system type and deduction percentage

    System type Unique Unique (in transition) In competition In competition Unique Combined ICS ICS ICS 11.5% 13.7% 11.74% + 16.0% 15.0% 22.5% Deduction Employer: 10.15% Employer: 2.3% Commission fee Employer: 12.0% Employer: 7.75% Affiliate: 15% percentage Affiliate: 1.125% Affiliate: 11.4% Affiliate A

  35. Slide 35: Investor Relations and Capital Markets

    INVESTOR RELATIONS AND CAPITAL MARKETS Investors and Capital Markets Manager Investors and Capital Markets Specialist CARLOS EDUARDO GONZALEZ MARIA ALEJANDRA DUQUE cegonzalezt@gruposura.com.co maduque@gruposura.com.co Investors and Capital Markets Director Investors and Capital Markets Analyst DANIE

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