Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q2 2017 Earnings Presentation
55 slides from Grupo De Inversiones Suramericana's earnings presentation, 2017
Slide 1: Corporate Presentation 2Q 2017
CORPORATE PRESENTATION 2Q 2017 1
Slide 2: Disclaimer
DISCLAIMER » The forward-looking statements contained herein are based on Management’s current forecasts and outlook. For better illustration and decision-making, figures for Suramericana, SURA Asset Management and its subsidiaries are administrative rather than accountant, and therefore may differ
Slide 3: Highlights
HIGHLIGHTS» 01 04 USD 7.5 bn MEXICO Market Cap GUATEMALA DOMINICAN Group of leading financial REPUBLIC Outstanding SALVADOR PANAMA services companies in Latam brand recognition 47 million COLOMBIA Clients* PERU BRAZIL Assets managed by our 02 05 strategic investments * » CHILE COP 585 tn ARGENTINA U
Slide 4: Investment Portfolio
INVESTMENT PORTFOLIO » STRATEGIC INVESTMENTS INDUSTRIAL INVESTMENTS CORPORATE VENTURE In alliance with Veronorte 81.1% 83.6% 46.4%* 35.2% 35.7%* GROWTH INVESTMENTS Insurance, Trends Pensions, Asset and Universal Processed Food Cement, Energy and Risk Management Wealth Management Banking and Infrastr
Slide 5: Industry and Geographic Diversification
I N D U S T R Y A N D G E O G R A P H I C D I V E R S I F I C AT I O N » Diversified financial services portfolio Geographic diversification Country Clients Revenues Net Income Assets COLOMBIA 25.2 50.5% 38.5% 56.4% CHILE 3.3 23.0% 28.6% 23.5% Banking MEXICO 7.6 9.1% 14.0% 5.1% Pension, AM & WM PERÚ
Slide 6: Large Client Base in Attractive Markets
L A R G E C L I E N T B A S E I N AT T R A C T I V E M A R K E T S » SURAMERICANA » SURA ASSET MANAGEMENT» BANCOLOMBIA » • 16.6 million clients in 9 countries. • 19.2 million clients in 6 countries. • 12 million clients • #1 Insurance company in Colombia • #1 Pension Fund in Latam with 23% • #1 Bank
Slide 7: History & Growth Stages
H I S T O R Y & G R O W T H S TA G E S » 1944 / 1990 1990 / 2007 2007 / 2016 2017 INSURANCE FINANCIAL INTERNATIONAL FOOTPRINT LEADERSHIP SERVICES EXPANSION OPTIMIZATION in Colombia group leader in Colombia Multi Latin, financial services group 7
Slide 8: Investment Portfolio
INVESTMENT PORTFOLIO » 2010» 2017» 28.6% Bancolombia 37% Bancolombia 3% Protección 24.4% Sura Asset Management 6% Suramericana USD 5.7 Bn 24% Grupo Nutresa 12.2% Suramericana 29% Grupo Argos Other USD 8.6 Bn 16.3% Grupo Nutresa 1% 18.2% Grupo Argos 46% in Financial Services 0.5% Otros 65% in Financi
Slide 9: Strategic Guidelines
S T R AT E G I C G U I D E L I N E S » COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES INNOVATION GEOGRAPHIC Development of our AND NEW BUSINESS EXPANSION AND MARKET Corporate Role » VENTURES DEVELOPMENT Executive Committee CREATING ADDED • CEOs from strategic investments • Long-term strategy CORPORAT
Slide 10: Innovation and New Ventures
I N N O V AT I O N A N D N E W V E N T U R E S » ALLIANCES Identify challenges of the digital age for our businesses, and partner for the development of specific projects, that help us make the transition together towards the future. » Big Data & Analytics » Blockchain » Identity STARTUP FACTORY COR
Slide 11: Comprehensive Range of Services and Synergies
COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES » ($) Wealth + – Life Cycle Universal Mandatory P&C Mandatory Voluntary Life Insurance Mutual Securities Programmed Annuities Assisted Banking Pensions Insurance Health Savings and Savings Funds Withdrawal Living ACCUMULATION PHASE DE-ACCUMULATION PHASE
Slide 12: Geographic Expansion and Market Development
MEXICO G E O G R A P H I C E X PA N S I O N #24 AND MARKET DEVELOPMENT» #3 DOMINICAN REPUBLIC GUATEMALA #5 #4 COLOMBIA EL SALVADOR #1 #2 PANAMA #1 #1 #4 #2 #2 #2 PERU #1 BRAZIL CHILE #22 #1 in P&C #4 Strategic Investments ARGENTINA URUGUAY #12 #2 #2 Number below each country corresponds to ranking i
Slide 13: Corporate Governance: Shareholders
CO RPO RAT E G O VERNANCE C O R P O R AT E G O V E R N A N C E » SHAREHOLDERS» 33.6% 27.1% Grupo Argos Total Outstanding Shares* 12.7% 10.2% Grupo Nutresa Colombian Pension 581,977,548 18.8% 26.1% Funds (COMM) (COMM + PREF) Outstanding Outstanding 20.6% 21.2% International Funds Common Shares Pref.
Slide 14: Corporate Governance: Sustainability and Board Composition
CO RPO RAT E G O VERNANCE C O R P O R AT E G O V E R N A N C E : S U S TA I N A B I L I T Y A N D B O A R D C O M P O S I T I O N » HIGH CORPORATE STANDARDS Code of Good Governance in accordance with international practices. The Board of Directors has 7 members of which 4 are independent. The chairm
Slide 15: Sound Reputation and Brand Strength
SOUND REPUTATION SO UND REPUT AT I O N AND BRAND STRENGTH» AND BRAND ST RENG T H DOMINICAN REPUBLIC 2016: 21 MEXICO 2016: 51.4 2016: PANAMA COLOMBIA 60% 2016: 59 2016: 81 2014: 48% PERU SURA´S BRAND AWARENESS» 2016: 29.2 has surpassed the 50% threshold in all but one of the CHILE URUGUAY countries w
Slide 16: Strong Financial Position: Dividend Evolution
STRONG FINANCIAL POSITION » Dividend evolution » 348 282 300 3x Bancolombia 2010 Dividends 208 SURA AM 190 Grupo Argos 154 *Calculation done in a proforma basis Grupo Nutresa 102 105 Source: each of the companies’ annual report. Protección Estimates done by Grupo SURA Suramericana Figures in USD Mil
Slide 17: Operating Cash Flow
STRONG FINANCIAL POSITION » O P E R AT I N G C A S H F L O W Grupo SURA generates close to USD 125 million for debt, dividend payment and investments 2017 DIVIDEND DISTRIBUTION » 2017E (1) 63 86.6% Dividend paid in 125 preferred shares 312 249 125 USD 15 million Dividend paid in Dividends and Other
Slide 18: Debt
DEBT» GRUPO SURA Banks Debt maturity profile » 550 International Bonds 24.0% Banks Local Bonds TYPE OF DEBT 74.3% Bonds 300 193 1.7% Repos 178 137 73 95 52 33 54 - 33 - 32 2017 2018 2019 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 Credit ratios» CURRENCY COP 67.1% Net Debt / Dividends Liquidity
Slide 19: Human Talent and Corporate Culture
H U M A N T A L E N T A N D C O R P O R AT E C U L T U R E » Key aspects» Key practices» » Business culture » Technology at the service of human talent » Talent development » Leadership formation » High potential talents » Talent retention » Working environment and engagement » Compensation and bene
Slide 20: Grupo SURA Consolidated Results 1H2017
GRUPO SURA CONSOLIDATED RESULTS 1H2017 20
Slide 21: Statement of Financial Position: Assets
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » GRUPO SURA CONSOLIDATED 1H 2017 Assets » dec-16 22,232 23,330 15,034 + 1,098 22,232 13,907 4.9% jun-17 23,330 0.0 5,000 .0 10 , 00 0.0 15 , 00 0.0 20 , 00 0.0 25 , 00 0.0 jun-17 Var. $MM %Change Investments 8,113 (476) -5.5% Investments in rel
Slide 22: Statement of Financial Position: Liabilities and Equity
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » GRUPO SURA CONSOLIDATED 1H 2017 Liabilities » dec-16 13,907 + 1,128 Total shareholder’s equity » 8.1% jun-17 15,034 dic-16 8,325 0.0 2,000 .0 4,000 .0 6,000 .0 8,000 .0 10 , 00 0.0 12 , 00 0.0 14 , 00 0.0 16 , 00 0.0 18 , 00 0.0 20 , 00 0.0 -3
Slide 23: Statement of Comprehensive Income
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » GRUPO SURA CONSOLIDATED 1H 2017 Total revenues » Total expenses » Net income » jun-16 2,665 jun-16 2,288 jun-16 303 + 596 + 680 -100 22.4% 29.7% -34.6% jun-17 3,260 jun-17 2,968 jun-17 203 0.0 50 0.0 1,00.0 1,50.0 2,00.0 2,50.0 3,00.0 3,50
Slide 24: Statement of Comprehensive Income: Net Income Bridge
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » CONSOLIDATED Fx Impact and non- Grupo SURA and Other* recurring expenses 4 18 319 (14) Net Income excluding Fx (78) (3) (15) impact and non-recurring (15) (8) 209 provisions +11.4% Non-recurring Fx Impact** (+) provisions Net Income ∆ Net
Slide 25: SURA Insurance, Trends & Risks: Suramericana Results 1H 2017
SURA INSURANCE, TRENDS & RISKS SURAMERICANA S.A CONSOLIDATED RESULTS 1H 2017 25
Slide 26: Suramericana
SURAMERICANA» MEXICO Ranking 24 0.4% 0.2 M 1H GWP EL SALVADOR USD 1.8 Ranking 2 DOMINICAN billion 16.3% REPUBLIC PANAMA 0.7 M Ranking 4 Ranking 5 9.1% 8.1% 0.2 M 0.1 M 54.3% Colombia COLOMBIA Ranking 1 15.3% Chile 10.4% Argentina 24.5% 4.9% Brazil 10.8 M 4.7% Mexico BRAZIL Ranking 22 3.4% Panama 2.7
Slide 27: Suramericana Business Model
SURAMERICANA» BUSINESS MODEL CENTERED ON CLIENT EXPERIENCE AND VALUE CREATION 01 04 Create great client experience and Build and develop competitive shareholders’ value advantages: Human talent, Technology and innovation, GTR 02 05 Strategic and emerging risk RSA Integration: management » Develop ne
Slide 28: Suramericana Consolidated Figures
SURA INSURANCE, TRENDS AND RISK MANAGEMENT » SURAMERICANA S.A. CONSOLIDATED FIGURES Total Revenues» Total Expenses » Net Income» jun-16 1,608 jun-16 1,506 jun-16 91 +624 MM +613 MM +4 MM 38.8% 40.7% 4.4% jun-17 2,232 jun-17 2,118 jun-17 95 0.0 20 00 . 40 00 . 60 00 . 80 00 . 1,000 . 1,200 . 1,400 .
Slide 29: Suramericana Net Income Bridge
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » CONSOLIDATED FIGURES SURAMERICANA S.A. Corporate Segment 4.5 7.8 14.0 (9.4) (1.5) 95.5 91.4 4.0 Net income excluding (9.6) (5.8) exchange difference at the Corporate Segment +16.3% Net Income Life Non-Life Health Care Fx Impact Admin. Inte
Slide 30: Segments: Premiums and Claims Ratio 1H 2017
SEGMENTS» PREMIUMS AND CLAIMS RATIO 1H 2017 Life » Non life » Health care » Premiums Retained Claims Ratio Premiums Retained Claims Ratio Services rendered Claims Ratio jun-17 %Var jun-17 jun-16 jun-17 %Var jun-17 jun-16 jun-17 %Var jun-17 jun-16 Life 96 6.2% 26.8% 25.3% Auto 411 76.1% 61.7% 63.9% E
Slide 31: SURA Asset Management Consolidated Results 1H 2017
SURA ASSET MANAGEMENT CONSOLIDATED RESULTS 1H 2017 31
Slide 32: Strategic Guidelines: Focus on the Client
S T R AT E G I C G U I D E L I N E S » FOCUS ON THE CLIENT 32
Slide 33: SURA Asset Management Strategic Guidelines
SURA ASSET MANAGEMENT » STRATEGIC GUIDELINES 01 04 The client is the absolute priority Disruptive advisory based and is at the core of our strategy commercial model 02 05 Sustainability of the mandatory Excellence in Asset business Management 03 06 Acceleration of the Focus on efficiency voluntary b
Slide 34: SURA Asset Management Total Company Figures
Nº1 in Pensions in Latam FIGURES MEXICO Ranking 3 TO TAL C O M PAN Y » EL SALVADOR USD 27.4 Bn 7.5 M AUM Ranking 2 15.0% 2,865 USD 125 billion USD 4.5 Bn 1.5 M 47.3% 333 COLOMBIA Ranking 2 Clients USD 28.9 Bn 5.9 M 19.1 million +8.0% PERU Ranking 1 36.7% 2,124 Voluntary +14.7% I Mandatory +7.7% USD
Slide 35: SURA Asset Management Consolidated Figures 1H 2017
SURA ASSET MANAGEMENT » CONSOLIDATED FIGURES 1H 2017 Total revenues » Total expenses » Net income » jun-16 836 jun-16 698 jun-16 81 +44.5 MM +48.3 MM -4 MM 5.3% 6.9% -4.9% jun-17 881 jun-17 747 jun-17 77 0.0 20 0.0 40 0.0 60 0.0 80 0.0 1,00.0 1,20.0 1,40.0 0.0 20 0.0 40 00 . 60 00 . 80 00 . 1,000 .
Slide 36: SURA AM Net Income Bridge
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » CONSOLIDATED FIGURES Corporate Segment 3 14 2 97 Net Income excluding Fx (13) impact and non-recurring 82 11 provisions 7 (30) (7) (2) +33.6% Non-recurring Fx Impact** (+) provision Net Income Mandatory Voluntary Insurance Annuities Fx Imp
Slide 37: Mandatory Pension: Market Figures 1H 2017
M A N D AT O R Y P E N S I O N » MARKET FIGURES 1H 2017 Assets Under Management » Pension fund membership (mm)» 16.7% 19.2% 15.5% 39.0% 19.7% 13.6% 18.1% 12.3% 13.5% 9.3% 23.9% 19.7% 8.7% 13.9% 111,770 -2.4% 16.4% -0.2% -0.2% 4.3% 4.6% 7.7% 94,673 17.3 16.0 36,017 7.4 6.3 30,871 20,394 24,301 22,324
Slide 38: Mandatory Pension: Main Figures 1H 2017
M A N D AT O R Y P E N S I O N » MAIN FIGURES 1H 2017 Commission income » Return on legal pension reserve (“encaje”) » 0.1% -5.5% -6.8% 14.8% -3.1% 1916.2% 231.4% 56.2% 254.4% 348.4% 2.3% 8.7% -3.6% 10.9% 3.7% 1962.1% 281.0% 61.7% 242.3% 376.4% 284.8 275.9 41.5 23 113.1 106.9 94.6 94.7 65.7 61.2 10
Slide 39: Voluntary Savings Segment: Main Figures
V O L U N T A R Y S AV I N G S S E G M E N T » MAIN FIGURES 1H 2017 Assets Under Management » Clients (thousands) » 25.4% 26.8% 44.9% 250.3% 21.0% 27.5% 20.7% 20.8% 37.1% 212.3% 21.0% 23.0% 7.7% 34.5% 23.5% -4.9% 12.7% 14.7% 10,506 1,010 880 8,241 4,101 393 424 3,102 3,234 279 314 2,473 1,803 2,182
Slide 40: Voluntary Savings Segment: Commissions and Net Income
V O L U N T A R Y S AV I N G S S E G M E N T » MAIN FIGURES 1H 2017 Commission income» Net premiums with savings » 14.1% 5.5% 46.7% 146.4% 17.1% 23.0% 831.3% 25.3% 16.7% 21.3% 51.8% 138.0% 25.3% 25.8% 970.6% 28.2% 30.5 164.5 168.2 26.0 133.8 134.2 15.7 13.8 10.4 11.0 1.6 2.4 0.2 0.5 0.0 0.9 0.4 3.6
Slide 41: Insurance Segment: Main Figures 1H 2017
INSURANCE SEGMENT » MAIN FIGURES 1H 2017 Net premiums » Adjustments to reserves » -29.3% -2.0% -22.6% -33.1% 21.9% -23.0% -27.7% 12.7% -18.6% -31.5% 40.1% -19.6% 275 0 0 207 213 147 -44 -53 68 66 -131 -196 -185 0 0 -240 Chile Mexico Peru Total Chile Mexico Peru Total Retained claims» Net income» 23.
Slide 42: Appendix
APPENDIX 42
Slide 43: SURA Asset Management: Mandatory Segment
SURA ASSET MANAGEMENT » MANDATORY SEGMENT Net Income: +9.6% 15 155 11 • Net Income grows 15.7% excluding exchange rate 142 2 differences. (10) (5) • AUM of USD 111 Bn growing 14% driven by good market performance. • Mexico where fees are based on AUM grows 13.5%. • Affiliates reach 17.3 million (+ 7
Slide 44: SURA Asset Management: Voluntary Savings
SURA ASSET MANAGEMENT » VOLUNTARY SAVINGS Net Income AFP Net Income 1H2016 Chile Mexico Peru Uruguay Protección Corporate 1H2017 • AUM of USD 10.5 Bn growing 23% with good dynamism in all countries. • Mexico, Chile and AFP Protección stand out with growth of 21%. 4.0 • Clients reach 1.0 million (+14
Slide 45: Demographic Fundamentals
D E M O G R A P H I C F U N D A M E N TA L S » YOUNG AND GROWING POPULATION 364 MM 559 MM Age 2010 people over 20 2050 100+ people over 20 INTERESTING DEMOGRAPHIC 90 – 94 7% 19% EVOLUTION IN LATAM » 80 – 84 Annuities 70 – 74 60 – 64 50 – 54 47% 51% Men 40 – 44 Savings and 30 – 34 accumulation 20 – 2
Slide 46: Financial Services Penetration
FINANCIAL SERVICES» PENETRATION Pension penetration (%GDP)» Banking penetration (%GDP) » 188.8% 97.4% 79.4% 70.7% 97.9% 86.6% 83.0% 33.6% 30.6% 47.1% 45.6% 32.4% 42.3% 27.9% 29.8% 49.3% 21.3% 20.3% 23.3% 14.7% Estados Colombia Perú Panamá México Uruguay Europa Chile El salvador Dominicana Unidos Eur
Slide 47: Cross Holding Structure
CROSS HOLDING STRUCTURE » FINANCIAL SERVICES 12.7% 33.6% 35.2% 35.7% PROCESSED FOOD INFRASTRUCTURE 12.4% 9.6% 47
Slide 48: Mandatory Pension Fund Segment
M A N D AT O R Y P E N S I O N F U N D S E G M E N T » Contributions to pension funds are Steadily increasing revenues driven AUM tend to be stable, mandatory and correlated to size of by contributions to funds / assets as pensions are “sticky” the formal workforce » Flows into pension funds are a f
Slide 49: Key Main Characteristics
KEY MAIN CHARACTERISTICS » 49
Slide 50: Key Main Characteristics
KEY MAIN CHARACTERISTICS » 50
Slide 51: Our Vision: Two Major Challenges for Latin American Pension Systems
OUR VISION» TWO MAJOR CHALLENGES FOR THE LATIN AMERICAN PENSION SYSTEMS: CLOSE THE EXISTING PENSION GAPS » ENHANCING THE INTEGRATION BETWEEN » or non-contribution Social assistance pillar A mandatory contribution pillar A voluntary savings pillar THE 3 PILLARS 51
Slide 52: Our Vision: Proposals for Enhancing a Multi-Pillared Pension System
OUR VISION» PROPOSALS FOR ENHANCING A MULTI-PILLARED PENSION SYSTEM More savings and More efficient Multi-funds Enhancing Incorporating over a longer investment protect against competition alternative period of time portfolios risk investment options Increasing Adequate Extending Enhancing the Creat
Slide 53: Undisputed Leadership in Highly Stable Mandatory Pension Business
U N D I S P U T E D L E A D E R S H I P I N H I G H LY S T A B L E M A N D AT O R Y P E N S I O N B U S I N E S S » 23.3% 19.6% 14.9% 36.2% 40.0% 17.8% 47.1% Ranking 1st Ranking 4th Ranking 3rd Ranking 2nd Ranking 1st Ranking 2nd Ranking 2nd Metlife 11.1% 26.2% 2.5% Prudential 10.9% 27.3% 2.2% Princ
Slide 54: From Labor Cycle to Generational Cycle
FROM LABOR CYCLE T O G E N E R AT I O N A L C Y C L E » PERSONAL WEALTH Wealth Cycle ACCUMULATION DE-ACCUMULATION Life Cycle 0 – 17 18 – 26 27 – 36 37 – 46 47 – 55 56 – 65 65 + Mandatory Pensions Voluntary Savings Investments Asset Management Loans Payments Mandatory Insurance Voluntary Insurance 54
Slide 55: Contact
DAVID BOJANINI CEO RICARDO JARAMILLO CFO JUAN CARLOS GOMEZ IR MD ANDRES ZULUAGA IR SPECIALIST E-mail: ir@gruposura.com.co Phone: (574) 3197039 www.gruposura.com.co 55
Grupo de Inversiones Suramericana — Q2 2017 Earnings Presentation on 6ix