Management Corporate Presentation Q1-2020 Disclaimer The forward- - PowerPoint PPT Presentation

SURA Asset Management Corporate Presentation Q1-2020

Disclaimer The forward- looking statements contained herein are based on Management’s current forecasts and outlook. For better illustration and decision-making, figures for SURA Asset Management and its subsidiaries are administrative rather than accountant, and therefore may differ from those presented to official entities. Thus, SURA Asset Management assumes no obligation to update or correct the information contained in this presentation.

Content 01 02 03 04 Corporate Overview Financial Client Centric Strategy Performance Focus 05 06 07 08 Investment Mandatory Transversal Savings and Management Pension enabling Investment Business Business Strategy Business Guidelines 09 10 Q4 – 2019 Management Results Team and Corporate Governance Standards

OVERVIEW

Who we are #1 PENSION FUND 35 YEARS OF REGIONAL RELEVANT MANAGER EXPERIENCE PLATFORM CLIENT BASE i n the region, with a in Latam, with a with a leading in attractive markets growing voluntary unique knowledge in presence in 7 Savings and the asset countries Investment business management industry. +482 22.3% 9,189 ~20.5 million MARKET SHARE EMPLOYESS SOLUTIONS AND retail clients And 304 Mandatory Pension PRODUCTS FOR OUR CLIENTS Institutional clients I N V E S T M E N T G R A D E : 7 A S S E T S M A N A G E D B Y O U R O P E R A T I N G O P E R A T I N G FITCH BBB+ R E V E N U E E A R N I N G S B U S S I N E S S C O U N T R I E S USD 117 bn MOODYS Baa1 USD 92.4 m USD -33.1 m Figures as of March 2020. Products and institutional clients as of December 2019

Backed by reputable shareholders Support from Strong and Sophisticated Shareholders Second largest pension fund in Latin American holding company with a Colombian investment group with Canada, CDPQ managed assets strategic focus on the diverse financial significant experience in the financial of $308.3 billion invested in Canada services sector. sector and elsewhere. 6.7% 83.6% 9.7%

Business Units INSTITUTIONS PERSONS MANDATORY SAVINGS AND INVESTMENT INVESTMENT MANAGEMENT » Mandatory pension » Voluntary Pensions » Management of investment portfolios » Distribution of own Mutual Funds and open » Severance and services (Mandates and Funds) architecture » Creation of investment products and » Unit linked services including distribution to » Insurance distribution institutional clients » Sales and trading 88% 6% 6% AUM AUM AUM AUM AUM AUM USD 8.7 bn USD 8.7 bn USD 102.9 bn * USD 3.5 bn from WM business Figures as of March 2020

FINANCIAL PERFORMANCE

SURA AM ´ s Financials Evolution RETURN ON LEGAL RESERVE AUM 125,314 103.3 116,815 107,677 104,885 60.8 87,963 27.9 3.1 19.2% 2.7% 16.4% -6.8% Return on legal reserve (“ encaje ”) -73.7 2016 2017 2018 2019 YTD 2020 2016 2017 2018 2019 YTD 2020 OPERATING EARNINGS WITH A STABLE SALARY BASE 910.7 39,681 37,548 35,626 807.4 34,294 778.2 34,679 33,110 31,249 717.4 716.4 713.3 700.2 672.4 5.4% 5.9% 3.6% 3.9% 5.7% -12.6% 166.1 92.4 2016 2017 2018 2019 YTD 2020 2014 2015 2016 2017 2018 2019 YTD 2020 Operating earnings 9 Operating earnings exc. “ encaje ” Note: Figures in USD million

ROE Adjusted by Encaje 8,7% 8,5% 8,0% 7,9% 7,9% 7,9% 7,7% 7,6% 7,3% 7,6% 7,1% 7,5% 7,5% 7,3% 6,5% 6,7% 6,8% 6,5% 6,4% 6,2% 3T17 4T17 1T18 2T18 3T18 4T18 1T19 2T19 3T19 4T19 ROE Adjusted ROE Adjusted "Enaje" 28,9% 29,0% 28,9% 31,4% 23,6% 30,5% 27,8% 27,1% 25,7% 4T17 1T18 2T18 3T18 4T18 1T19 2T19 3T19 4T19 10 ROTE Adjusted Figures as of December 2019

Debt Sura Asset Management Debt Gross debt Maturity profile $ 500 DEC 19 1,090.3 DIC 19 $ 350 -4.7% $ 138 1,038.9 MAR 20 $ - $ - $ - 2020 2023 2024 2025 2027 2036 CLP Financial liability GROSS DEBT/ EBITDA LTM COP 0.04% hedge (BRUTA) 12.3% 1% 3.2x Financial Obligations 13% COST OF D (Total) CURRENCY TYPE OF DEBT EXPOSURE* 6.27% Bonds EBITDA YTD / INTERESTS issued USD 86% 4.2x 87.7% 11

CORPORATE STRATEGY

Corporate Strategy OUR PURPOSE Helping our clients to achieve their dreams and goals STRATEGIC GUIDELINES » Our client in the center of our » Core guidelines for the » Capacity development through strategy development of our transversal enabling strategy businesses guidelines • Persons • • • Investment Management Institutions Sustainability of our • Channel Management based Mandatory Business • Transforming our Savings in our advisory services • Innovation and digital and Investment Business transformation • Developing our • Human Talent and our Investment Management transforming culture Business

CLIENT CENTRIC FOCUS

Clients at the core of our corporate strategy O u t s t a n d i n g CLIENTS BRAND AWARENESS b r a n d r e c o g n i t i o n 20.5 19.8 1.4 19.0 1.3 1.3 18.7 1.1 1.1 17.3 17.0 16.7 18.5 1.0 15.7 0.9 0.7 17.9 17.3 R e l e v a n t 0.7 17.0 C l i e n t b a s e 66% 15.8 63% 62% 15.5 54% 15.4 48% 45% 14.5 37% 21% 2012 2019 2012 2013 2014 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2015 H i g h c l i e n t r e c o m m e n d a t i o n MANDATORY TOTAL VOLUNTARY +4.5% +3.9% +13.0% CAGR 12-19 CAGR 12-19 CAGR 12-19 Figures in million

MANDATORY PENSION BUSINESS

Mandatory pension business Investments Highlights N a t u r a l S o u r c e E c o n o m i c a n d O u t s t a n d i n g f u n d s U n d i s p u t a b l e o f R e v e n u e D e m o g r a p h i c s p e r f o r m a n c e a n d l e a d e r s h i p i n S t a b i l i t y G r o w t h E f f i c i e n c y i n t h e R e g i o n o p e r a t i v e m o d e l

Mandatory pension business Investments Highlights N a t u r a l S o u r c e E c o n o m i c a n d O u t s t a n d i n g f u n d s U n d i s p u t a b l e o f R e v e n u e D e m o g r a p h i c s p e r f o r m a n c e a n d l e a d e r s h i p i n S t a b i l i t y G r o w t h E f f i c i e n c y i n t h e R e g i o n o p e r a t i v e m o d e l

Highly stable business compared to other financial services The Mandatory Pension Funds System Is a Natural Source of Revenue Stability TRADITIONAL ASSET MANAGERS Stable cash flows as fees are mostly based on monthly Vulnerable cash generation as fees are more volatile, generally contributions based on AuM and performance Longstanding client relationship with recurrent, “sticky” Not captive client base, can flee easily contributions Investor’s asset allocation and performance lead Regulated fund performance is similar among fund managers, leading to lower client churn to higher client churn Upside potential due to attractive demographic trends More mature and developed markets

Mandatory pension business Investments Highlights N a t u r a l S o u r c e E c o n o m i c a n d O u t s t a n d i n g f u n d s U n d i s p u t a b l e o f R e v e n u e D e m o g r a p h i c s p e r f o r m a n c e a n d l e a d e r s h i p i n S t a b i l i t y G r o w t h E f f i c i e n c y i n t h e R e g i o n o p e r a t i v e m o d e l

Strong Macro Performance Despite Global Volatility… REAL GDP GROWTH UNEMPLOYMENT RATE SURA- AM’s markets 11% continue to present 3,5% 10,3% 3,3% 10% 3,1% compelling fundamentals 2,8% 9% 8,9% 2,6% 2,4% 2,3% 8% supporting long-term 2,3% 2,3% 2,2% 7,9% 2,1% 1,9% 7% 1,7% 6,6% growth: 6% 5,7% 1,0% 5% ✓ Resilient economic i 4% 3,8% 3% growth and growing 2% Latam Chile Mexico Uruguay Colombia Peru El Salvador 2012 2013 2014 2015 2016 2017 2018 2019 2020 labor markets Avg. 14-19 Avg. 20-24 Chile Mexico Colombia ✓ Young populations and ii Peru Uruguay El Salvador LABOR FORCE (MM) increasing employment formalization 58 48 ✓ Deep under-penetration iii of pension and wealth 27 22 19 management products 16 10 8 3 3 2 2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Chile Colombia Mexico Peru El Salvador Uruguay Source: Economist Intelligence Unit and Factset. World Bank

...Coupled With Strong Growth Potential Given Favorable Demographics… Strong Share of Population in Savings and Accumulations Age Poised to Bolster AUM Age 2010 2050 Programm 100+ Withdrawal 592MM Annuities 368MM 10% 25% 90 – 94 people over and people ed 80 – 84 20 over 20 Attractive 70 – 74 60 – 64 Demographics in a accumula 51% Savings 53% 50 – 54 period tion and Fast Growing 40 – 44 30 – 34 Market (1) 20 – 24 10 – 14 0 – 4 12 8 4 0 4 8 12 12 8 4 0 4 8 12 (%) (%) Men Women 81,5 Growing Life 65,4 Expectancy in LatAm (1) 1.4% 10.9% 4.4% 14.2% 6.5% 10.6% 71,0 62,1 Growing (Million) Economically Active 26,5 24,8 Population 19,7 17,8 9,0 9,2 3,0 3,3 1,9 1,8 Chile Mexico Colombia Peru Uruguay El Salvador % Var 2019 2029 Source: ECLAC and Economist Intelligence Unit. (1) Population distribution for Latin America as reported by ECLAC.

… In Underpenetrated Pension Industry Low Penetration of Financial Services in LatAm Result in a Growing Opportunity in the Mandatory Pension June 2019 % GDP – PENSIONS 73% 62% 38% 28% 22% 26% 25% 27% 21% 18% 18% 14% 17% 10% Chile México Peru Colombia Uruguay Salvador LATAM Dic_10 Jun_19 Source: LatinoAFP *2019 Market penetration = AUM / GDP. .