2014 M A N A G E M E N T P R E S E N T A T I O N D E C E M B E R

Transcription

1 2014 M A N A G E M E N T P R E S E N T A T I O N D E C E M B E R

2 D I S C L A I M E R he forward-looking statements contained herein are based on Management s Tcurrent forecasts and outlook. For better illustration and decision-making, figures for Grupo de Inversiones Suramericana and the companies that belong to its investment portfolio are administrative rather than accountant, and therefore may differ from those presented to supervisory authorities. Thus, Grupo de Inversiones Suramericana assumes no obligation to update or correct the information contained in this presentation. 2

3 G R U P O S U R A M A I N F I G U R E S CONSOLIDATED REVENUES 2014: 5.0 Δ+ 14.2% vs USD USD Billion 11.0BN IS THE COMERCIAL VALUE OF THE INVESTMENT PORTFOLIO (12/2014) USD BN OF ASSETS UNDER MANAGEMENT 2 ~37 million clients in 9 countries 2 The market cap of Grupo SURA s linked companies represent 27.2%5 of Colombian total market cap. INTERNATIONAL RATING S&P BBB Fitch BBB- Local rating Fitch AAA Colombian company with the longest bond maturity. 40 years INVESTMENT PORTFOLIO COMPOSITION 64% (Financial services) 36% (Industrial sector) 62% Of the portfolio is invested in liquid shares with important weight in the region s indices 3 1 Considering Suramericana at 2xP/BV, SURA Asset Management at 1xP/BV and the rest of the companies at market value. 2 Through our strategic investments: Sura Asset Management, Suramericana and Bancolombia. 3 Grupo Argos, Grupo Nutresa, Bancolombia. 4 Includes information of Inversiones y Construcciones Estratégicas, Grupo SURA Panamá and Grupo SURA Finance (affiliates that are owned 100% by Grupo SURA). 5 Source: BVC. Figures as of December 31 de 2014 unless stated. 3

4 A G E N D A 1FOCUS ON STRATEGIC SECTORS 2 Successful regional expansion and consolidation plan 3 4 Solid financial results Our investments 4

5 1 F O C U S O N S T R A T E G I C S E C T O R S FINANCIAL INVESTMENTS INDUSTRIAL INVESTMENTS 81% 46 INSURANCE AND SOCIAL SECURITY 67% PENSIONS, SAVINGS AND INVESTMENT UNIVERSAL BANKING 36 %* * % CEMENT, ENERGY, PORTS, REAL ESTATE 35% PROCESSED FOOD REPRESENTS 64% OF THE PORTFOLIO *Stake in common shares 5

6 S T R A T E G Y 1Our prime purpose is to inspire trust based on long-term relationships and provide added value to all those investments that make up our portfolio. 6

7 1 I N V E S T M E N T P O R T F O L I O E V O L U T I O N 17.7% Grupo Argos 0.7% Other 22.5% SURA Asset Management 22.0% Grupo Argos USD 28.1% Grupo Nutresa 4.7% Otros 1.4% Proteccion 9.7% Suramericana 3.6 BILLION* DECEMBER % Bancolombia 17.2% Grupo Nutresa 11.0 USD BILLION* DECEMBER % Bancolombia 15.1% Suramericana Including the commercial value pursuant to accountant standards and the stakes held in GRUPO SURA and Affiliates. NOTE: Considering Suramericana at 2x P/BV, SURA AM at 1x P/BV and the other companies at market value. 7

8 1 D I V I D E N D S DIVIDENDS PER COMPANY 2015E DIVIDENDS PER COUNTRY 2015E* Grupo Nutresa 9.8% Grupo Argos 8.0% USD 310 Million SURA Asset Management 43.5% Mexico 11.3% Uruguay 0.6% Peru 9.3% Other 9.1% USD 310 Million Colombia 48.6% Bancolombia 28.0% Suramericana 10.8% Chile 21.1% *Calculation done in a proforma basis Source: each of the companies annual report. Estimates done by Grupo SURA 8

9 18. 0% 16. 0% 14. 0% 12. 0% 10. 0% 8.0% 6.0% 4.0% 2.0% 0.0% 1 S H A R E H O L D E R S Grupo SURA continues to increase its international funds shareholder base. As of December international funds owned Grupo SURA stocks. The average volume trade during 2014 for both stocks was of USD 7.9 million in the BVC. SHAREHOLDERS (COMM+PREF) SHAREHOLDERS (COMMON) 5.3% 10.7% 30.7% Grupo Argos and subsidiaries Grupo Nutresa 15.6% 4.0% 8.1% 37.1% 17.4% Colombian Pension Funds International Funds % 25.6% Shareholders Common Preferred T 14 Figures in thousands Retail Investors Institutional Investors % 12.7% International Funds 14.3% 17.4% % % % % 3.8% 1.9% T 14 Market Cap (USD Billions) 9.7 P/BV: 1.01 Outstanding shares: 575,372,223 Preferred: 106,334,963 Common: 469,037,260 9

10 1 C O R P O R A T E G O V E R N A N C E A N D A W A R D S AWARDS 2014 CORPORATE STANDARDS Grupo Sura has a Code of Good Governance in accordance with international practices. Best managed company in Colombia 2nd company in Latin America in the category of banking and financial services Gold Class, 2nd place worldwide Best Financial Multilatin Company Best managed company in Latin America Best cross-border business The Board of Directors has 7 members of which 4 are independent. The chairman and vice-chairman are independent. Main committees that oversee the corporate governance practices of the company Investment Committee Audit and Finance Committee (composed 100% of independent members) Compensation and Development Committee. Member of the Dow Jones Sustainability Indices for its responsible and comprehensive management of business practices. Four consecutive years in : 10

11 1 C O R P O R A T E R E S P O N S I B I L I T Y SOCIAL DEVELOPMENT A COMPREHENSIVE VIEW OF OUR CORPORATE RESPONSIBILITY Our commitment to sustainable development lies at the core of our strategic planning initiatives. We are convinced that everything we do today shall affect both our shareholders and our environment in the future. BUSINESS MANAGEMENT Practices used to obtain our corporate goals. Playing an active role in a wide range of social development programs either in the form of institutional donations or the volunteer work of Grupo SURA s employee PUBLIC ARENA Creating knowledge so as to strengthen the institutional structures of all those countries where we are present 11

12 A G E N D A 2 SUCCESSFUL REGIONAL EXPANSION AND CONSOLIDATION PLAN 1 Focus on Strategic sectors 3 4 Solid financial results Our investments 12

13 2 S T R A T E G I C B U S I N E S S E X P A N S I O N PRESENCE IN THE MAIN COUNTRIES OF THE REGION DOMINICAN REPUBLIC GUATEMALA PANAMA COLOMBIA MÉXICO PERÚ EL SALVADOR INTERNATIONAL ACQUISITIONS OF OUR STRATEGIC INVESTMENTS CHILE URUGUAY BANCOLOMBIA Banagricola Banco AgroMercantil Banistmo SURAMERICANA Agrícola de Seguros Proseguros Asesuisa 2013 Seguros Banistmo * Perú SURA ASSET MANAGEMENT ING AFP Crecer 2011 Invita 2012 AFP Integra Molina & Swett Afisa Sura AFP Horizonte* Primero Seguros

14 2 L A T I N A M E R I C A N B R A N D PRESENCE IN THE MAIN COUNTRIES OF THE REGION 14

15 Age Age 2 D E M O G R A P H I C F U N D A M E N T A L S Real GDP Growth % 4.0% 3.2% 2.8% 1.9% 1.2% 0.4% 0.8% 0.2% 0.2% USA Chile GDP Growth Colombia El Salvador GDP per cápita growth Mexico 8.1% 6.2% 5.6% Panama 4.0% 4.3% Peru 2.5% Dominican Rep 5.0% 4.7% Uruguay LATAM population evolution % -4% -2% 0% 2% 4% 6% 65.4 LATAM life expectancy % -2% 0% 2% 4% Male Female Source: CELADE, CEPAL population division, IMF 15

16 USA Europe Chile Colombia El Salvador Mexico Panama Peru Dominican Rep Uruguay USA Europe Chile Colombia El Salvador Mexico Panama Peru Dominican Rep Uruguay USA Europe Chile Colombia El Salvador Mexico Panama Peru Dominican Rep Uruguay 2 F I N A N C I A L S E R V I C E S P E N E T R A T I O N Pension penetration (% GDP) Banking penetration (% GDP) 183.8% 74.5% 77.0% 61.6% 18.6% 29.8% 12.3% 0.82% 17.7% 19.6% 10.1% 132.2% 93.5% 76.9% 39.7% 43.3% 26.8% 34.8%26.4% 28.0% 7.8% 6.8% Insurance penetration (% GDP) 3.9% 3.1% 2.4% 2.4% 2.0% 1.5% 1.3% 2.1% Considerations Given the low penetration of financial services in LATAM, Grupo SURA estimates a considerable growth of its business in the countries where it is present. Grupo SURA s main interest is to provide a comprehensive portfolio of financial services in these countries. Average of the countries where Grupo SURA has presence *Weighted average of the countries that are part of OECD. Source: Regulatory filings, OECD, IMF, Swiss Re Sigma Report 16

17 A G E N D A 3 SOLID FINANCIAL RESULTS 1 Focus on Strategic sectors 2 4 Successful regional expansion and consolidation plan Our investments 17

18 3 F I N A N C I A L R E S U L T S REVENUES OPERATIONAL EXPENSES % % OPERATIONAL INCOME NET INCOME % % Figures in USD million 18

19 3 K E Y R A T I N G A R G U M E N T S Sound credit profile of the companies from which Grupo SURA receives dividends Diversified and stable source of dividends INTERNATIONAL RATING S&P BBB FITCH BBB- LOCAL RATING FITCH AAA Adequate Debt Service Coverage Historic low leverage levels Adequate liquidity and ability to access alternative sources of liquidity 19

20 3 R E A S O N S T O I N V E S T Robust balance sheet with low leverage levels Investment portfolio with exposure to different economic sectors Non replicable investment portfolio Sustained growth in received dividends Leading companies in profitable markets with excellent perspectives Financial strength and good operational perspectives Excellent liquidity position Access to local and international capital markets 67% of the portfolio is invested in liquid stocks 20

21 A G E N D A 4 OUR INVESTMENTS 1 Focus on Strategic sectors 2 3 Successful regional expansion and consolidation plan Solid financial results 21

22 4 S T R A T E G I C I N V E S T M E N T S S U R A M E R I C A N A Nº1 COMPANY IN INSURANCE IN COLOMBIA WITH PRESENCE IN EL SALVADOR, DOMINICAN REPUBLIC AND PANAMA MILLION CLIENTS USD2.9 BILLION IN PREMIUMS IN ,605 EMPLOYEES (includes agents) 24.0% MARKET SHARE (Colombia)* 10 USD 1.0 BILLION SHAREHOLDERS EQUITY EL SALVADOR ASESUISA CLIENTS 976 ths MS>19.2% MARKET PENETRATION 2.4 % PANAMA SEGUROS SURA CLIENTS 74ths MS>4.5 % MARKET PENETRATION 3.2 % DOMINICAN REPUBLIC - SURA CLIENTS 104ths MS> 9.7 % MARKET PENETRATION 1.3 % COLOMBIA SURA ARL - EPS CLIENTS 9.0mm MS>24.0 % MARKET PENETRATION 2.7 % USD189.8 MILLIONS NET INCOME 11.2% EXPENSE RATIO Figures as of December 2014 unless otherwise stated 22

23 1,20 1, % 20. 0% 15. 0% 10. 0% 5.0% 0.0% -5.0% 4 S T R A T E G I C I N V E S T M E N T S S U R A M E R I C A N A Suramericana Individual FS (USD Million) Q4 14 Q4 13 % Var. YoY Total assets 1, % Current assets % Investments 1, % Total liabilites % Shareholders' equity 1, % Operating income % Earnings from Equity Method % Operating expenses (12) (8) 42.1% Net income % REVENUE BREAKDOWN REVENUES PER SUBSIDIARIES SURA Dominican Rep Asesuisa 2% 4% SURA Panama 2% Other subsidiaries 2% 15.3% 953 Q4 13 Q4 14 % Var YoY Workers Compensation 12% USD 2.9 billion Life Insurance 35% % % % EPS SURA 20% % % 19.6% Property and Casualty 23% Life Insurance Property and Casualty EPS SURA Workers Compensation Asesuisa SURA SURA Panama Dominican Rep Figures in USD millions 23

24 % 60. 0% 50. 0% 40. 0% 30. 0% 20. 0% 10. 0% 0.0% 4 Premiums and Claims (USD Million) S U R A M E R I C A N A P & C I N S U R A N C E Premiums 4Q 14 % Var YoY Premiums 4Q 13 % Retained Claims Ratio 4Q 14 Automobile % % % 60.1% SOAT % % % 51.2% Fire % % % 25.5% Transport % % % 29.0% Third party liabilities % % % 31.8% Other % % % 46.5% Total % % % 52.7% % Var Retained Premiums 4Q 14 % Var YoY RETAINED PREMIUMS AND CLAIMS PREMIUMS DISTRIBUTION % % % 29.0% 31.8% Automobile SOAT Fire Transport Third party liabilities 46.5% Other Retained Premiums 4Q 14 Retained Claims 4Q 14 % Retained Claims Ratio 4Q 14 PREMIUMS DISTRIBUTION 15% Other 5% Third party liabilities 3% Transport 21% Fire 18% SOAT 38% Automobile Figures in USD millions 24

25 % 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 4 S U R A M E R I C A N A L I F E I N S U R A N C E Premiums and Claims (USD Million) Premiums 4Q 14 % Var YoY Premiums 4Q 13 % Retained Claims Ratio 4Q 14 Health % % % 62.8% Individual life % % % 23.6% Group life % % % 30.3% Other life % % % 50.6% Subtotal Life % % % 42.1% Disability and Survivorship % % % 92.4% Annuities % % % 607.0% Total % % % 57.8% % Var Retained Premiums 4Q 14 % Var YoY RETAINED PREMIUMS AND CLAIMS PREMIUMS DISTRIBUTION 62.8% % 30.3% % PREMIUMS BREAKDOWN 23% Disability and Survivorship 1% Annuities 27% Health % Health Individual life Group life Other life Disability and Survivorship Annuities Retained Premiums 4Q 14 Retained Claims 4Q 14 % Retained Claims Ratio 4Q 14 6% Other life 20% Group life 23% Individual life Figures in USD millions 25

26 4 S T R A T E G I C I N V E S T M E N T S S U R A A S S E T M A N A G E M E N T Nº1 COMPANY PENSIONS IN LATINAMERICA SPECIALIZED IN SAVINGS AND INVESTMENT PENSIONS IN LATINAMERICA COLOMBIA Mandatory Voluntary Severance Funds MILLION CLIENTS USD114 BILLION IN ASSETS UNDER MANAGEMENT 9,292 EMPLOYEES 23.3% MARKET SHARE (LATAM consolidates)* USD MILLIONS NET INCOME 17 USD 3.7 BILLION SHAREHOLDERS EQUITY MILLION IN EBITDA 2014 MÉXICO Pension Funds Asset Management Annuities Life Insurance Financial figures include SURA AM subsidiaries, while nonfinantial figures include AFP Proteccion and Crecer (Not controlled) EL SALVADOR Pension Funds Insurance Broker PERU Pension Funds Asset Management Life Insurance CHILE Pension Funds Asset Management Life Insurance Equities URUGUAY Pension Funds Asset Management *Countries where the company has presence 26 Figures as of December 2014

27 4 S T R A T E G I C I N V E S T M E N T S S U R A A S S E T M A N A G E M E N T STRATEGY Mandatory Pension Distribution Focus and synergies Brand Business Scale Share of Wallet Value Proposition Advisory 17million CLIENTS Client Bonding And Retention Products Expanded and Specialized Offer Voluntary Savings Corporate strategy with a client focus, adapted to each country s environment. Leverage Of the voluntary savings business from mandatory pensions. 27

28 4 S T R A T E G I C I N V E S T M E N T S S U R A A S S E T M A N A G E M E N T Assets under management (USD Billion) 15.8% 21.0% 11.2% 15.5% 18.6% 9.2% SUAM % Chile México Perú Colombia Uruguay El Salvador 1.7 Q Q %Var Affiliates Mandatory (15.5 Million) -2.3% -0.1% -0.8% 4.2% 3.1% 5.2% SUAM + 1.1% Chile México Perú Colombia Uruguay El Salvador 0.3 Q Q %Var Base Salary (USD 42,384 Million) Commission (%) 6.4% 15.1% 13.5% 14.3% 6.8% 13,333 14,185 9,462 8,224 15,028 13,240 SUAM % 1.44% 1.44% 1.21% 1.52% 1.52% 1.15% 1.00% 1.99% 1.99% 1.10% 0.95% 1.13% 1,140 1,303 2,253 2,406 Chile Perú Colombia Uruguay El Salvador Q Q %Var Chile México (AUM) Perú Colombia Uruguay El Salvador Q Q Notes: 1. Clients and AUM include AFP Proteccion and Crecer which are no consolidated by SURA Asset Management. 28

29 4 S T R A T E G I C I N V E S T M E N T S S U R A A S S E T M A N A G E M E N T Revenues (1,978.3 USD Million) Consolidated financial figures under IFRS. Operational expenses (1,538.8 USD Million) % +44.1% -7.1% +7.6% NA Net income ( USD Million) SURA AM % Chile México Perú Uruguay Colombia % +26.4% +77.7% +16.5% NA SURA AM % % +67.2% -16.1% +8.0% Chile México Perú Uruguay EBITDA ( USD Million) SURA AM % +4.9% +36.6% +61.1% +55.7% NA SURA AM % Chile México Perú Uruguay Colombia Chile México Perú Uruguay Colombia Notae: 1. AFP Proteccion and Crecer are no fully consolidated given the stake of 49.36%. Income from Colombia corresponds to the equity method and dividends received from AFP Proteccion. 2. Chile s results exclude dividends received from local subsidiaries (USD million for 2014 and USD million for 2013) as well as Peru (USD 23.8 million for 2014 and USD 9.1 million for 2013) and from Uruguay (USD 10.0 million for 2014), which were subsequently eliminated in the consolidated financial statements 3. Figures in million dollars 29 29

30 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 4 S T R A T E G I C I N V E S T M E N T S B A N C O L O M B I A Bancolombia ended successfully its local stock issuance (USD1.4 billion with a bid to cover of 2.7 times) to strengthen its capital structure. Leading franchise in Colombia an Central America, markets with attractive growth perspectives Focus on growth in profitable segments Preserves a culture of conservative risk management, maintaining sound levels of capital and liquidity 24.4% Market share* USD 11.4 Market cap Bn Revenues Net income Net interest margin % % % 6.4% 5.5% 5.8% USD 62.2 Total assets 2.9% PDLs/Total loans Bn dic.-09 dic.-10 dic.-11 dic.-12 dic.-13 dic % Allowances/PDLs *Colombia. Figures in USD billion as of December Source : Grupo Bancolombia 30

31 USD Millions 4, , , , , , , % 40. 0% 30. 0% 20. 0% 10. 0% 0.0% 4 P O R T F O L I O I N V E S T M E N T S G R U P O A R G O S STRATEGIC INVESTMENTS USD EBITDA Mm Cement Energy Ports Real Estate 8.7% EBITDA GROWTH* EBITDA DISTRIBUTION 14% Holding 1% Other 46% Cement 2, % 2, % 2, , % 25% 3, % USD 6.8 MARKET CAP 8.1% Bn Dividend growth (Common.) % Energy dic.-10 dic.-11 dic.-12 dic.-13 dic.-14 Revenues Net Income EBITDA Margin USD NET INCOME Mm Figures in USD billion as of December 2014 unless otherwise stated. Source : Grupo Argos 31

32 USD Millions 3, , , , , % 20. 0% 15. 0% 10. 0% 5.0% 0.0% 4 P O R T F O L I O I N V E S T M E N T S G R U P O N U T R E S A Leader in the processed food industry en Colombia and the fourth* largest in Latin America. Presence in 15 countries with production plant in 12 of them. In 2013 it acquired Tresmontes Lucchetti, the second largest processed food company in Chile. USD EBITDA Bn In 2014 it acquired Grupo El Corral, the largest fast food chain in Colombia. USD 5.5 Market Cap Bn 15% Chocolates EBITDA DISTRIBUTION 9% Ice Cream 11% TMLUC 17% Coffee 3% Pasta 1,864 26% Meat 19% Cookies 12.1% 2, % 2, % 2,465 2, % 13.4% dic.-10 dic.-11 dic.-12 dic.-13 dic.-14 Revenues Net Income EBITDA Margin Level 1 ADR 60.6% Market share (Colombia) NET INCOME Figures in USD billion as of December 2014 unless otherwise stated. Source Grupo Nutresa *Measured by Market Cap 32

33 CEO: DAVID BOJANINI CFO: IGNACIO CALLE IR Director : LUIS EDUARDO MARTÍNEZ IR Specialist: DANIEL MESA ir@gruposura.com.co Phone: (574) GRUPO SURA App for mobile devices (App Store Google Play)