Management Corporate Presentation Q3 - 2019 Disclaimer The - PowerPoint PPT Presentation

SURA Asset Management Corporate Presentation Q3 - 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 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 Investment 05 06 07 08 Mandatory Transversal Savings and Management Pension enabling Investment Business Business Strategy Business Guidelines 09 10 Q3 – 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 in Latam, with a i n the region, 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. +591 22.6% 9,188 ~20 million MARKET SHARE EMPLOYESS SOLUTIONS AND retail clients Mandatory Pension PRODUCTS FOR OUR And 324 CLIENTS Institutional clients I N V E S T M E N T G R A D E : 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 7 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 141 bn MOODYS Baa1 USD 744.4 m USD 345.7 m Figures as of September 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 » Severance » Distribution of own Mutual Funds and open (Mandates and Funds) architecture » Creation of investment products and » Unit linked services » Insurance distribution » Sales and trading 88% 6% 6% AUM AUM AUM AUM AUM AUM USD 9.6 bn USD 10.2 bn USD 124.9 bn * USD 3.9 bn from WM business Figures as of September 2019

FINANCIAL PERFORMANCE

SURA AM ´ s Financials Evolution RETURN ON LEGAL RESERVE AUM 141,189 98.4 126,296 Return on legal reserve (“ encaje ”) 124,255 120,881 101,197 66.3 30.3 9.9% 19.5% 20.9 8.8% 4.2 2016 2017 2018 YTD SEP 18 YTD SEP 19 2016 2017 2018 YTD SEP 18 YTD SEP 19 WITH A STABLE SALARY BASE OPERATING EARNINGS 866.5 804.8 US$ MM 798.0 793.8 38.937 768.1 750.8 738.4 729.9 727.0 36.961 696.6 35.578 34.356 32.433 30.406 29.044 4.7% 5.9% 3.6% 5.4% 3.9% 2016 2017 2018 YTD SEP 18 YTD SEP 19 2014 2015 2016 2017 2018 3Q18 3Q19 Operating earnings 9 Operating earnings exc. “ encaje ” Note: Figures in USD million

ROE Adjusted by Encaje 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% 6,5% 6,4% 6,2% 3T17 4T17 1T18 2T18 3T18 4T18 1T19 2T19 3T19 ROE Ajustado ROE Adjusted ROE Ajustado Encaje ROE Adjusted Encaje 28,9% 29,0% 28,9% 23,6% 30,5% 30,4% 27,8% 27,1% 25,7% 3T17 4T17 1T18 2T18 3T18 4T18 1T19 2T19 3T19 10 ROTE Ajustado ROTE Adjusted

Debt Sura Asset Management Debt Gross debt Maturity profile $500 DEC 18 DIC 18 1,060.2 $350 -1.5% $107 SEP 19 1,044.6 $24 $- $- $- $- $- 2017 2018 2019 2020 2023 2024 2025 2027 2036 2.1x CLP Financial liability COP 0.04% hedge 10.7% 1% GROSS DEBT/EBITDA LTM 5.1x Financial Obligations 12% CURRENCY TYPE OF DEBT EBITDA YTD / INTEREST EXPOSURE* 6.32% Bonds USD issued 89.2% COST OF DEBT 87% (Total) 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 • • Institutions • Sustainability of our • Investment Management Mandatory Business • Channel Management based Transforming our Savings in our advisory services • and Investment Business • Innovation and digital Furthering our Investment transformation • Management Business • Human Talent and our transforming culture

CLIENT CENTRIC FOCUS

Clients at the core of our corporate strategy O u t s t a n d i n g b r a n d CLIENTS BRAND AWARENESS r e c o g n i t i o n 20.2 19.8 19.0 1.4 1.3 18.7 1.3 1.1 17.3 1.1 17.0 16.7 18.3 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 63% 15.8 62% 15.5 54% 15.4 48% 45% 14.5 37% 21% 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2016 2017 2018 YTD 2015 H i g h c l i e n t 2019 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 Regulated fund performance is similar among fund managers, Investor’s asset allocation and performance lead 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… LABOUR FORMALIZATION REAL GDP GROWTH SURA- AM’s markets 76,0% 72,8% 3,8% 64,9% continue to present 3,3% 3,2% 3,1% 51,8% 2,8% 2,7% compelling fundamentals 51,5% 2,6% 2,6% 2,4% 43,4% 2,3% 2,2% 2,2% 42,0% 2,0% supporting long-term 31,7% 30,0% 26,8% 1,1% growth: N/A N/A ✓ Resilient economic i Latam Chile México Uruguay Colombia Peru El Chile Mexico Colombia Peru Uruguay Salvador growth and growing Salvador 2015 2016 2017 2018 labor markets Avg. 14-18 Avg. 19-23 ✓ Young populations and UNEMPLOYMENT RATE ii LABOR FORCE (MM) 14% increasing employment 12% formalization 58,9 54,8 10% 8,8% 8% 6.5% ✓ Deep under-penetration iii 6,5% 6% 5,9% 25,4 5,2% of pension and wealth 26,6 4% 4,6% 18,3 17,2 management products 2% 8,6 9,1 0% 2,7 2,9 2010 2012 2014 2016 2018 2020 1,8 1,8 2014 2015 2016 2017 2018 Mexico Peru Chile Chile Colombia Mexico Uruguay Colombia El Salvador Peru El Salvador Uruguay Source: Economist Intelligence Unit and Factset.

...Coupled With Strong Growth Potential Given Favorable Demographics… Strong Share of Population in Savings and Accumulations Age Poised to Bolster AUM Age 2010 2050 100+ Programm 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 53% 51% Savings 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) 7.1% 5.4% 16.8% 7.1% 12.1% 14.4% 72,5 62,0 Growing (Million) Economically Active 26,3 24,6 Population 19,8 17,3 9,3 8,7 3,3 3,0 1,8 1,9 Colombia Chile El Salvador Peru Mexico Uruguay % Var 2018 2028 Source: ECLAC and Economist Intelligence Unit. (1) Population distribution for Latin America as reported by ECLAC.