CORPORATE RESULTS 1Q2020 MAY 2020 Index Tanner at a Glance - PowerPoint PPT Presentation

CORPORATE RESULTS 1Q2020

MAY ı 2020 Index • Tanner at a Glance • Corporate Results • Balance Sheet • Covid-19 2

Tanner at a Glance NET LOANS ‘17 - ’1Q20 CAGR: 14.0% (MUS$) » Tanner is a non-bank financial institution from Chile with $1,528 $1,478 $1.183 over 25 years of experience and a leading position within $1,100 the auto financing and factoring industries. » Stands on highly diversified, strategically built loan and funding portfolios:  No business line represents more than 38% of total gross 2017 2018 2019 1Q 2020 loans.  Loans distributed across 17+ industries. PROFITABILITY (1)(2)  Top five customers represent less than 9% of our loan 11.05 10.76 10.70 9.73 portfolio.  No single creditor represents more than 5% of our funding » Our business model is based on operational excellency, 2.4 2.3 2.1 2.1 offering timely services enabled by vanguard technological developments. 2017 2018 2019 1Q 2020 » Highest standards of corporate governance, with a ROAE (%) ROAA (%) premier management team and board, supported by NET PROFIT ‘17 - ’1Q20 CAGR: 10.4% experienced shareholders. ( MUS$) Physical Branch » One of Chile’s highest ROAA across the finance industry Virtual Branch $ 38 $37 $ 35 $ 30 Intl. Local BBB- AA- Rating Rating 2017 2018 2019 1Q 2020 (LTM) 3 3 (1) ROAE = Net Profit LTM / Average Equity (2) ROAA = Net Profit LTM / Average Assets

MAYO ı 2020 Index • Tanner at a Glance • Corporate Results • Balance Sheet • Covid-19 4

Slight contraction of our net loans, maintaining risk within expected levels. NET LOANS DISTRIBUTION HIGHLIGHTS (MUS$) ‘17 - ’1Q20 CAGR: 14.1% • Tanner fell in profits 15,2% YoY and 3,3% YoY in net loans. Deudores Varios Empresas • NPL’s over 90 days reached 3,1% (2,5% in 1Q2019). Automotriz +11.4% • During January 2020, the placement of a bond in Switzerland $1,478 1,528 $ 1,388 5% $ 1,327 3% was agreed upon for CHF 200 million with a yield of 0,588%, 4% 6% $ 1,100 35% 37% 31% 4% 33% the disbursement took place during February. Additionally US$ 32% 88 million in commercial papers were placed during the first 65% 60% 59% 61% 64% quarter. 2017 2018 2019 1Q2019 1Q2020 NON PERFORMING LOANS (1) GROSS MARGIN DISTRIBUTION (2) ‘17 - ’1Q20 CAGR: 11.7% (MUS$) NPLs > 30 Days NPLs > 90 Days Subsidiaries & Treasury Corporate Auto-Financing -1,9% 6.9% $ 96 $ 22 $21 $ 89 5.6% 8% 6,2% 21% 22% $ 75 19% 4.9% 5,5% 31% 4.1% 18% 21% 22% 29% 30% 3,1% 2.7% 2.3% 2,5% 58% 61% 57% 52% 52% 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 5 (1) Mora = Non performing loans / (Loans + Provisions) (2) Gross Margin considers portfolio deterioration.

Corporate Division YIELD(1) NET LOANS ‘17 - ’1Q20 CAGR: 10.6% (MUS$) Leasing Crédito Factoring 11.7% 11.7% 11.3% 11.1% 11.0% +8% $ 914 $ 904 $ 877 10% 10% $ 812 10% 13% $ 699 32% 2017 2018 2019 1Q2019 1Q2020 38% 17% 42% 33% NON PERFORMING LOANS(2) 32% NPLs > 30 días NPLs > 90 días 4.9% 58% 52% 3.6% 3.4% 54% 3.8% 47% 51% 3.1% 2.4% 2.0% 2.3% 1.4% 1.6% 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 6 (1) Yield = LTM Income / Average Net Loans (2) NPL’S = Non performing loans / (Loan Stock + Provisions)

Factoring HIGHLIGHTS NET LOANS AND NUMBER OF CLIENTS ‘17 - ’1Q20 CAGR: 6.9% • Lower NPL’s product of strict origination policies implemented. Clients Net Loans (MUS$) • Lower placements compared to 4Q2019 due to the product’s stational demand. 3,578 3,734 3,650 3,454 3,177 • Increasing volume levels are expected, but not stock levels due to a $ 522 $ 475 new prompt payment law coming in effect. $437 $414 $ 356 • Product composition: - Invoices: they add up to over 68% of total factoring volume. - Confirming represents approximately 3%. - Checks and Promissory Notes: they represent around 19% and 2% of 2017 2018 2019 1Q2019 1Q2020 total Factoring volume. NON PERFORMING LOANS (1) YIELD (2) 14.5% 14.2% NPLs > 30 Days NPLs > 90 Days 13.9% 3.4% 12.4% 12.1% 3.0% 2.9% 2.7% 2.6% 2.1% 1.5% 1.4% 1.3% 1.1% 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 7 (1) NPL’S = Non performing loans / (Loan Stock + Provisions) (2) Yield = LTM Income / Average Net Loans

Factoring GROSS MARGIN (1) LOAN PORFOLIO INDUSTRY DISTRIBUTION (2) ‘17 - ’1Q20 CAGR: 10.3% ‘ Real Estate Others 14% 18% Financial Int. +1,1% 8% 34 34 31 16% 27 Commerce 9% Education 11% 13% Non Metal Manufacturing 11% Construction 2017 2018 2019 1Q2020 (LTM) Agriculture NON PERFORMING LOANS (3) LARGEST NON BANK FACTORING IN THE SYSTEM (Market share as % of gross loans) 20.4% 6 Instituciones no bancarias 15.1% 13.2% 11.2% 7.7% 8.4% 4.4% 5.4% 2.4% 2.4% 2.0% 2.0% 1.8% 0.6% 1.4% 1.5% 8 (1) Gross Margin considers portfolio risk charge (3) NPL’S = Non performing loans / (Loan Stock + Provisions) (2) Based on SII’s classifications.

Corporate Lending & Leasing HIGHLIGHTS YIELD (1) • This division’s primary objective is to diversify the loan portfolio with collateralized loans of longer duration. 10.2% 9.9% 9.9% 9.4% • Aimed at increasing cross selling, increasing our Factoring customer 9.3% base fidelity. • Decreasing Leasing placements as strategy turns exclusively to real estate leases. • Higher gross margins due to increasing commissions (Corporate lending) and interest (leasing). 2017 2018 2019 1Q2019 1Q2020 CORPORATE LENDING: NET LOANS AND NUMBER OF CLIENTS LEASING: NET LOANS AND NUMBER OF CLIENTS ‘17 - ’1Q20 CAGR: 25.4% ‘17 - ’1Q20 CAGR: -10.3% Vendor Machinery Clients ClientS Net Loans (MUS$) Auto Leasing Real State 837 771 707 676 857 676 560 373 578 344 348 311 $ 118 $ 108 266 $ 96 $ 22 $ 93 $ 93 $ 11 289 $ 11 $ 14 $ 19 $ 12 $ 35 $ 11 $ 12 $ 12 $ 21 $ 8 $ 8 $ 13 $ 15 224 $ 67 $ 62 $ 62 $ 47 $ 46 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 9 (1) Yield = LTM Income / Average Net Loans

Corporate Lending & Leasing CORPORATE LENDING & LEASING COLLATERALS GROSS MARGIN CORPORATE LENDING + LEASING (MUS$) ‘17 - ’1T20 CAGR: 31.5% Others No Physical Collateral 3% / 1% Mortgage 28% / 9% Crédito + Leasing 40% componen un +1.2% / 13% 31.1% de las colocaciones 23 23 totales 15 12 29% / 9% % Specified Portfolio / 2017 2018 2019 1Q2020 (LTM) Pledge % Total Portfolio CORPORATE LOANS: NPL’S > 90 DAYS (1) LEASING: NPL’S > 90 DAYS (1) 3.1% 8.0% 2.3% 2.1% 1.5% 3.5% 3.4% 1.2% 4.3% 3.3% 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2019 1Q2020 10 (1) NPL’S > 90 Days = NPL’s > 90 Days / (Loan stock + Provisions)

Auto Financing HIGHLIGHTS • This product has an attractive risk to return profile, with the vehicle as NET LOANS AND NUMBER OF CLIENTS ‘17 - ’1Q20 CAGR: 21.5% guarantee and sizeable down payments. 77,888 Clients Net Loans (MUS$) 69,989 75,797 • Tanner has diversified into three sales channels: 67,577 533 • 1) AMICAR 551 57,293 • 2) Dealers 435 422 • 3) Direct. 355 • We expect to increase our share in the new vehicles market given the better payment behavior, driven by our recent agreement with Nissan Chile. • Cross-selling with Tanner Corredora de Seguros. 2017 2018 2019 1Q2019 1Q2020 YIELD (1) GROSS MARGIN (2) ‘17 - ’1Q20 CAGR: -1.2% (MUS$) 25.2% 24.5% 24.0% 21.4% 21.3% +9.3% 26 22 22 20 2017 2018 2019 1Q2019 1Q2020 2017 2018 2019 1Q2020 (LTM) 11 (1) Yield = LTM Income / Average Net Loans (2) Gross Margin considers portfolio risk charge

Auto Financing PORTFOLIO DISTRIBUTION DISTRIBUTION BY SALES CHANNEL Used 13% 10% Directo 13% 12% 14% 31% 36% 33% 40% Dealer 57% 54% 54% AMICAR 48% 86% New 2017 2018 2019 1Q 2020 STRONG PRESENCE IN THE AUTO FINANCING INDUSTRY NPL’s > 90 Days (1) (GROSS LOANS 4Q 2019) Usado 5.82% 5.60% 5.45% 14% 5.07% 4.98% 4.90% 4.70% 4.53% 4.54% 4.39% 4.40% 4.40% 4.27% 276 4.70% 3.93% 4.65% 3.87% 4.60% 4.40% 4.27% 3.70% 575* 2.89% 2.91% 3.64% 2.77% 2.68% 3.37% 2.59% 3.01% 2.71% 2.68% 2.64% 2.58% 2.58% 2.40% 630 86% 2.24% 2.19% Nuevo 2017 2018 2019 1T 2020 1,685 dic-17 mar-18 jun-18 sept-18 dic-18 mar-19 Jun-19 Sep-19 Dec-19 Mar-20 12 (1) NPL’S > 90 Days = NPL’s > 90 Days / (Loan stock + Provisions) *Tanner’s NPL’s displayed to 1Q 2020

Tanner Investments HIGHLIGHTS BROKERAGE RANKING 1Q 2020* • Through it’s three vehicles it offers several investment alternatives to it’s individual and institutional clients: Tanner Corredores de Bolsa: Offers brokerage services. • • Asset Management (TAM): Third party fund distribution. • Asesorías e Inversiones (TAI): Strategic advisory services. • TCB reports losses for 1Q 2020, mainly due to the spread deterioration in several fixed income instruments held within the portfolio. TCB NET PROFIT INCOME DISTRIBUTION ‘17 - ’1T20 CAGR: 22.5% ‘17 - ’1Q20 CAGR: 1.9% (MUS$) (MUS$) -46.7% 17 5.2 15.0% 14 14 8.6% 17.0% 17.1% 5.3% 3.3 20.9% Others 9 24.4% 2.7 23.0% 2.6 13.2% FX 7.2% 20.1% 29.6% Stocks 65.2% 45.0% 59.5% Fixed Income 28.9% 2017 2018 2019 1Q2020 (LTM) 2017 2018 2019 1Q 2020 (LTM) 13 (*) According to brokerage amounts published by Bolsa de Comercio de Santiago