Grupo SURA Corporate Presentation Q4-2019
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 accounting, and therefore may differ from those presented to official entities. Thus, Grupo de Inversiones Suramericana assumes no obligation to update or correct the information contained in this presentation. Figures from income statement are converted to USD with an exchange rate of 3,281.1 COP/USD (average exchange rate for 2019), other financial figures are converted to USD with an exchange rate of 3,277.1 COP/USD (rate for end of period Q4-2019) only for re-expression purposes. 2
Leading Financial Services Group in Latam with a solid and diversified portfolio 11 countries +52 million clients #1 PENSION FUND #1 INSURANCE #1 COLOMBIAN INDUSTRIAL MANAGER COMPANY BANK INVESTMENTS in Latam, with a in Colombia, with an with a leading with relevant positions growing voluntary established growth presence in Central in attractive markets savings business platform in Latam America USD 55.6 bn USD 147 bn USD 5.2 bn in AUM in Operating Revenues in loans A S S E T S M A N A G E D B Y O U R M A R K E T C A P I N V E S T M E N T G R A D E : B R A N D E M P L O Y E E S * R E C O G N I T I O N USD 5.9 bn +60,000 S T R A T E G I C I N V E S T M E N T S * FITCH BBB S&P BBB- ~60% USD 240 bn D e c e m b e r 3 1 , 2 0 1 9 3
Diversified Investment Portfolio and other investments Insurance, trends Cement, energy and risk management and infrastructure 1% 81.1% STAKE 35.2% STAKE* 11% 20% 11% USD Processed food 11.1 b n 35.2% STAKE 29% Pensions, asset and 28% wealth management 83.6% STAKE Universal banking 46.1% STAKE* 76% 49% Note: *SURA AM valued at the last transaction (CDPQ), in financial in publicly Suramericana at 1.8x BV and companies listed at market services listed companies value at the end of the quarter. 4 *Stakes in common shares
History & Growth Stages INSURANCE INTERNATIONAL LEADERSHIP EXPANSION in Colombia Multi Latin, financial services group 1 9 4 4 / 1 9 9 0 2 0 0 7 / 2 0 1 6 2 0 1 7 - 1 9 9 0 / 2 0 0 7 FOOTPRINT OPTIMIZATION FINANCIAL Divestments for USD ~500 MM SERVICES - Annuities business (Ch., Pe., Mx) leader in Colombia - Non-core investments 5
Building a Regional Platform with a Long Term View BECOMING THE CREATING LONG AND THE 4TH WITH A FOCUS ON LARGEST PENSION FUND TERM RELATIONS LARGEST LATAM FINANCIAL STRENGTH MANAGER IN LATAM WITH OUR CLIENTS INSURANCE GROUP # of clients AUM Dividends Gross received from from pension written premiums management our portfolio business 14 52 USD 10 bn USD 147 bn USD 90 USD 320 USD 1.2 bn USD 5.2 bn MILLION MILLION MILLION MILLION 2 0 1 0 2 0 1 9 2 0 1 0 2 0 1 9 2 0 1 0 2 0 1 9 2 0 1 0 2 0 1 9 SUCCESSFUL % Dividends & Net Income from Colombia # of countries DIVERSIFICATION FROM COLOMBIA 3 100% 49% 11 6 2 0 1 0 2 0 1 9 2 0 1 0 2 0 1 9 Nota: 2019 figures are LTM as of Q1-2019
Geographic Footprint P O P U L AT I O N C L I E N T S F I N A N C I A L S E R V I C E S 520 MM 52 MM + 1 . 1 % C A G R ( 2 0 0 0 - 2 0 1 8 ) I N 11 C O U N T R I E S P E N E T R AT I O N * B A N K I N G I N S U R A N C E P E N S I O N 2.8% vs . 7.8% 31% vs . >80% ~ 4 8 % vs . > 150% f o r a d v a n c e d c o u n t r i e s f o r U S a n d U K f o r U S a n d E U D R I V E R S ECONOMIC MIDDLE UNDER FORMALIZATION DEMOGRAPHICS GROWTH CLASS PENETRATED OF THE FORMATION SECTORS ECONOMY 7 *Penetration as measured by Premiums/GDP of the countries were Suramericana has presence, AUM/GDP in the countries were SURA AM has presence and loans/GDP in Colombia.
Corporate Strategy Purpose: Create well-being and sustainable development for people, organizations and society. Aspiration: to become a referent Latin American Group in the financial services sector, thanks to our ability to evolve and provide superior added value to shareholders and society. STRATEGIC PRIORITIES STRATEGIC PILLARS Financial management ➢ Transformation and evolution of our businesses ➢ Financial strength and investment capacity Human talent and culture ➢ Delivering greater value to our clients Innovation and entrepreneurship Internal and external alliances Trust and reputation Knowledge ALIGNING OUR BUSINESSES WITH METRICS AND GOALS T R U S T C O N T R I B U T I O N T O S O C I E T Y • • S U S T A I N A B I L I T Y V A L U E C R E A T I O N • • Brand and Market development, externalities ROE Dow Jones reputation and contribution to SDG EVA Sustainability Index positioning 8
Portfolio Management Strategy SH AREHOLDER VALUE R ETU RN ON C APITAL GR OW TH SYSTEMATIC C APITAL MAN AGEMENT AT STRATEGIC PR OACTIVE C OR PORATE AD D IN G AC QUISITIONS D IVESTITURES VALUE TO U N ITS ALLOCATION A GR ANULAR LEVEL BE A BETTER OWNER BE IN GOOD BUSINESSES • Focus on value • After an intensive • Understanding of • Review capital • Position ourselves creation, granular expansion phase, competitive exposure and for future profitable analysis for whole focus on profitability advantages and allocation process growth. portfolio. and organic growth. value creation levers criteria. of each operation. 9 * Source: McKinsey
Grupo SURA’s Financials Evolution CONSOLIDATED REVENUES* HOLDING COMPANY RECEIVED DIVIDENDS 318 306 ~3.5x 13.3% -0.3% 281 6.2% 259 2010 Dividends 247 31.2% 6,679 5,913 5,897 183 5,570 Bancolombia 167 SURA AM 135 4,246 Grupo Argos 92 Grupo Nutresa 90 Protección Suramericana Other 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 T o t a l r e v e n u e s CONSOLIDATED NET INCOME CONT. OPERATIONS HOLDING COMPANY CASH FLOW (2019) 23 329 20.4% -18.0% 2.8% 27.9% 306 492 492 94 524 486 409 404 398 96 116 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 OPERATING INTEREST DIVIDEND CASH DIVIDENDS AND OPERATING CASH FLOW PAYMENT AVAILABLE OTHER INCOME EXPENSES & N e t i n c o m e 10 TAXES *Consolidated revenues figure includes Exchange Difference Figures in USD million
ADJUSTED ROE With an upward trend ADJUSTMENTS TO ROE Net Income: • Addback of non-cash expenses related to M&A 10.6% 10.3% 12% 9.7% Equity 11% 8.9% 10.4% • Associates and their portfolios, which are valued close to market 9.1% prices Normalized Adjusted ROE • Returns on legal reserves from mandatory pension funds (“ encaje ”) dic-17 dic-18 mar-19 jun-19 sep-19 dic-19 are normalized to reflect long-term returns on diversified portfolios ADJUSTED ROTE: 11.4 % 31 %
OUR PORTFOLIO Estimated value 0.1 11.1 1.2 1.3 9.3 3.2 -1.8 ~35% Discount 5.9 2.2 3.1 GRUPO OTHER PORTFOLIO HOLDCO DEBT + PORTFOLIO SURA AM SURAMERICANA BANCOLOMBIA GRUPO MARKET VALUE NUTRESA ARGOS NPV OF TAXES & VALUE (-) CAP. EXPENSES DEBT M A R K E T C A P I T A L I Z A T I O N Current Market Cap implies S H A R E S A D T V ( D e c . 3 1 , 2 0 1 9 ) non-listed assets valued at: ( C O M M O N + P R E F ) D 5.9 bn 0.6x BV D 4.5MM US US 0.4x Estimated value SURA AM valued at the last transaction (CDPQ), Suramericana at 1.8x equity and companies listed at market value at the end of the quarter Portfolio valuation estimated by Grupo SURA. Does not constitute an investment advisory Figures in USD bilion
Grupo SURA Individual Debt D E B T 550 M AT U R I T Y P R O F I L E » C R E D I T R AT I O S » 343 N E T D E B T / D I V I D E N D S ( F T M ) 4.1x 137 146 85 49 30 29 29 Max. 5x - - 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 I N T E R N A T I O N A L B A N K S L I Q U I D I T Y L O C A L B O N D S R E P O S B O N D S 0.93x USD 1.4 bn » F I N A N C I A L D E B T: Min. 1.2x 10 % 15 % L O A N T O VA L U E B A N K S CURRENCY U S D 13.1% TYPE OF B O N D S C O P EXPOSURE DEBT Max. range 25-30% 90 % 85 % 13 Figures in USD million
EXCELLENT RESULTS WITH RECORD HIGH NET INCOME Driven by operating dynamics and investment income OPERATING OPERATING INCOME ADVANCES IN STRATEGY REVENUES COP 3.0 tn • Improvement in profitability 19.5% + 55 bps COP COP 21.9 tn Adjusted ROE NET INCOME 13.3% • Optimization of invested capital COP 1.7 tn COP 2.5 tn 27.9% Before taxes • Divestments by Grupo SURA and subsidiaries USD 500 MM PROPOSALS FOR AGM 2017-2019 • Dividend payment • Share repurchase +15.3% COP 300,000 MM • Grupo SURA (holding) debt reduction 3 years COP 380,000 MM COP 850,000 MM COMMENTS FROM CEO 2017-2019 2019 • David Bojanini is retiring after 40 years in the Group and 13 as • Transformation of our businesses and creation of greater value CEO. to clients • Gonzalo Pérez named as new CEO with 38 of experience in the Group’s insurance subsidiary. 14
Recommend
More recommend
