Corporate Presentation Grupo SURA Q2-2020
LEGAL 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 3,690.82 COP/USD (average exchange rate for 1H-2020), other financial figures are converted to USD with an exchange rate of 3,756.3 COP/USD (rate for end of period Q2-2020) only for re- expression purposes. 2
Corporate Presentation Strategy
DIVERSIFIED INVESTMENT PORTFOLIO 29% 78 % 46.1% stake* 1% and other investments in financial services #1 bank in Colombia and a leader in Central America 20% 81.1% stake 51 % in publicly listed 11% 35.2% stake* companies #1 in Colombia y #4 Latin America #1 in Colombia and a Note: leader in the region Valuation as of December 31, 2019. Suramericana is valued at 1.8x book value, SURA AM 11% 28% 83.6% stake 35.2% stake at implied valuation from CDPQ transaction and listed companies at market value. *Stakes in common (voting) shares #1 in Colombia and a #1 Pension Fund Manager leader in the region in the region MARKET CAP. INVESTMENT GRADE: BRAND ~60,000 +52 million 11 countries RECOGNITION COP 10.5 tn FITCH BBB (Int) S&P BBB- ~60% employees clients AAA (Col) June 30, 2020 4 4
HISTORY AND GROWTH STAGES 2017- 2007 / 2016 1944 / 1990 1990 / 2007 LEADERSHIP FINANCIAL SERVICES INTERNATIONAL EXPANSION FOOTPRINT OPTIMIZATION IN INSURANCE • Leader in Colombia Multi Latin, financial Divestment of Annuities business in Colombia services group (Ch., Pe., Mx) • Life Insurance (Mexico) • Non-core investments USD +500 MM FINANCIAL STRENGTH AND TRANSFORMATION AND EVOLUTION DELIVERING GREATER VALUE INVESTMENT CAPACITY OF OUR BUSINESSES TO OUR CLIENTS 5
GEOGRAPHIC FOOTPRINT CLIENTS FINANCIAL SERVICES DRIVERS 52 MM ECONOMIC IN 11 COUNTRIES GROWTH POPULATION 520 MM MIDDLE CLASS FORMATION +1.1% CAGR (2000-2018) DEMOGRAPHICS PENETRATION* UNDERPENETRATED INSURANCE BANKING PENSION FUNDS SECTORS ~ 51% vs. >130% 2.8% vs. 7.8% ~30% vs. >80% in US and UK Developed countries in US and UK FORMALIZATION OF THE ECONOMY *Source: Sigma Explorer – Swiss Re, IMF World Economic Outlook, OCDE, World Bank. Penetration measured as Premiums/GDP of the countries were Suramericana has presence, AUM/GDP in the countries were SURA AM has presence and loans/GDP in Colombia. 6
ESG STANDARDS AND RATINGS ESG Ratings Evolution Other Initiatives / Standards Index / Standard 2019 2016 2017 2018 DJSI (max. 100) 73 83 75 79 FTSE4GOOD (max. 5) 4.1 3.5 3.9 3.8 MSCI (max. AAA) BBB BBB BBB BB ISS ESG C C+ C+ DJSI Results 100 90 80 70 60 50 Prioritized SDG 40 30 20 10 0 Total Economic Environmental Social Dimension Dimension Dimension Best Grupo SURA 2018 Grupo SURA 2019 Mejor Avg. World Index Avg. Industry Promedio World Index Promedio industria 7
FINANCIAL METRICS GRUPO SURA EVOLUTION CONSOLIDATED REVENUES SURAMERICANA OPERATING REVENUES (COP tn) Total revenues (COP trillion) Insurance GWP 17.14 15.10 14.63 Health Care 3.87 revenues 22 11.95 3.13 2.61 19 19 13.27 18 2.19 12.02 11.96 CAGR 2015-19 7.70 14 9.77 1.82 Insurance GWP 22.5% 5.88 Health Care Revenues 20.8% 2019 2019 2015 2016 2017 2018 2015 2016 2017 2018 SURA AM COMMISSION INCOME (COP bn) CONSOLIDATED NET INCOME Net income (COP trillion) Mandatory Pensions 2,292 2,089 1,970 1,888 272 1,799 Voluntary Savings 231 1.7 207 and Investments 165 1.6 2,013 144 1,858 1,761 1,722 1.3 1.3 1.3 1,654 CAGR 2015-19 Pensions 5.0% Voluntary 17.2% 2019 2019 2015 2016 2017 2018 2015 2016 2017 2018 8
LIABILITY MANAGEMENT HOLDING COMPANY Successful bond issue allows early management of 2021 maturities INDICATORS DEBT PROFILE AFTER ISSUANCE » » NET DEBT Figures in COP billion COP 4.5 bn NET DEBT/ DIVIDENDS 1,859 (12M) 3.9x » % USD DEBT (NET OF HEDGING) 1,022 6% Max. 5x 718 425 296 300 289 180 166 98 100 - CASH FLOW COVERAGE … … … … … 2020 2021 2022 2023 2024 2026 2027 2029 2030 2032 2040 2049 1.3x Banks Local bonds 2020 local bonds International bonds Min. 1.2x SUCCESSFUL LOCAL BOND ISSUANCE – AUGUST 2020 AMOUNT ISSUED BID TO COVER AVERAGE DURATION AVERAGE COST LEVERAGE (LTV) COP 1 tn 2.23x 10.9 yrs 4.89% 15.3% With current Max. 25-30% reference rates *USD denominated debt converted at hedge rates. Current administrative information 9
CASHFLOW HAS ALLOWED US TO DELEVERAGE AFTER EXPANSION PHASE COP DENOMINATED DEBT GRUPO SURA (HOLDING) 2020 CASHFLOW REDUCTION (in COP tn) Figures in COP billion 1.76 109 1,132 1,022 COP -202,726 MM 357 364 1.56 11 291 Dividends and Operating Operating Interest expense Paid dividends Investments Available cash other income expenses & cashflow March 2017 June 2020 taxes USD DENOMINATED DEBT GRUPO SURA (HOLDING) RECEIVED DIVIDENDS REDUCTION (in USD MM) (COP trillion) 1.13 1.04 1.00 ~3.8x 0.92 USD - 238.5 MM 0.85 0.81 2010 Dividends 1,169 Bancolombia 930 0.60 SURA AM 0.55 Grupo Argos 0.44 Grupo Nutresa Protección 0.30 0.30 Suramericana Other March 2017 June 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 10
COVID-19 CRISIS MANAGEMENT SOCIETY FINANCIAL EMPLOYEES CLIENTS AND RISKS AND BUSINESSES OPPORTUNITIES Working together Moment to be Update on risks and Focus on liquidity Preserve their wellbeing to be part of the relevant opportunities and solvency solution 11
COVID-19 CRISIS MANAGEMENT AND RECENT HIGHLIGHTS EMPLOYEES CLIENTS AND BUSINESS Preserve their wellbeing Moment to be relevant Suramericana +1,500 new hires of health professionals in Colombia. Covid-19 tests: +200,000 tests processed (~ 13% of the country's total) and a 200% increase in daily processing capacity. Gateway: 20% of administrative employees Oxygen therapy: +14,000 patients attended; 1.7% have been hospitalized and 0.39% to ICU. reassigned to serve customers. Support in economic reactivation: • Workers ’ Compensation (ARL): +109,000 companies advised on biosafety protocols; +14.3 million protection elements delivered. • Empresas SURA: +44,500 companies contacted. New solutions adapting to the needs of customers: SOCIETY • Plan Elige, Salud Digital (health care), Vida Digital (individual life). • Plan Complementario 60 más (complementary plan to mandatory health). Working together to be part of the • Mobility: usage-based insurance. solution Autos SURA in Uruguay: Acquisition of companies for mobility assistance. Active participation in search of the general SURA Asset Management solution. Launch of real estate funds (Col and Peru) and financing for SMEs (Col) Learnings and proprietary knowledge shared with public entities and competitors. Incorporation of a SICAV in Luxembourg. Fiduciaria SURA : closing of the acquisition of a fiduciary in Colombia. 12
COVID-19 CRISIS MANAGEMENT AND RECENT HIGHLIGHTS RISKS AND OPPORTUNITIES FINANCIAL Update on risks and opportunities Focus on liquidity and solvency Increase in sales effectiveness. We maintain capital above regulatory requirements and focus on preserving liquidity Grupo SURA Suramericana • Payment of 2020 debt maturities with own cash generation: COP 131,000 MM. Higher demand of Life and Health insurance • solutions. Fx hedging: debt in USD is now equivalent to 6% of the total. • Issuance of local bonds ensuring resources for 2021 maturities. SURA Asset Management Suramericana Regulatory changes in mandatory pension systems: • Payment of local bonds in June for COP 150,000 MM. • Chile. • AAA rating ratified for Suramericana and Seguros SURA Colombia. • Colombia. • Mexico. SURA Asset Management • Peru. • Baa1 international rating by Moody’s (Jun 2020). Savings relevance : voluntary savings and net Flow reached COP 1.9 tn in 1H 2020. 13
Recommend
More recommend
