Corporate Presentation 3Q 2016

Transcription

1 Corporate Presentation 3Q

2 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 accountant, and therefore may differ from those presented to entities officers. Thus, Grupo de Inversiones Suramericana assumes no obligation to update or correct the information contained in this presentation 2

3 AGENDA GRUPO SURA STRATEGY GRUPO SURA CONSOLIDATED RESULTS SURA ASEGURAMIENTO, TENDENCIAS Y RIESGOS SURAMERICANA S.A INSURANCE AND SOCIAL SECURITY SURA ASSET MANAGEMENT PENSIONS, SAVINGS AND ASSET MANAGEMET BANCOLOMBIA, GRUPO ARGOS AND GRUPO NUTRESA 3

4 GRUPO SURA MAIN FIGURES AS OF SEPTEMBER 2016 CONSOLIDATED REVENUES USD 4.7 BILLION % vs. 3Q 2015 Including the RSA acquisitions MARKET CAP ~ 44 MILLION CLIENTS 7.5 BILLION USD USD ~178 BILLION ASSETS UNDER MANAGEMENT COUNTRIES INTERNATIONAL INVESTMENT GRADE Fitch BBB S&P BBB Local Rating: Fitch AAA Colombian company with the longest bond maturity 40 years Investment Portfolio 68% Financial Services 32% Industrial Sector 58% Of the portfolio is invested in liquid shares with important weight in the region s indices 2 1. Through our strategic investments: Sura Asset Management, Suramericana and Bancolombia 2. Grupo Argos, Grupo Nutresa, Bancolombia 4

5 GRUPO SURA STRATEGY Lima 5

6 FOCUS ON STRATEGIC SECTORS FINANCIAL INVESTMENTS INDUSTRIAL INVESTMENTS 81.1 % 78.7 % 46.4 % 35.2 % 35.7 % INSURANCE AND SOCIAL SECURITY PENSIONS, SAVINGS AND INVESTMENT UNIVERSAL BANKING PROCESSED FOOD CEMENT, ENERGY INFRASTRUCTURE AND REAL ESTATE OTHER INVESTMENTS *Stake in common shares As of September

7 STRATEGY COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES New customer-focused goals Strengthening our group dynamics and relationships. Taking a broader view of making further inroads in uncharted territories. INNOVATION AND NEW BUSINESS VENTURES Strengthening our capacity to generate new business and understanding new competitive environments CORPORATE GOVERNANCE Strengthening our corporate governance and aligning this with our Subsidiaries SOUND REPUTATION AND BRAND STRENGTH GEOGRAPHIC EXPANSION AND MARKET DEVELOPMENT Organic and inorganic growth based on our regional presence in both the current and target markets. Extending and drilling down on our current markets in line with the Group s strategy Prioritizing markets and lines of business HUMAN TALENT AND CORPORATE CULTURE Human talent as a key factor for service providers, ensuring the skills they need to develop their strategies both now and in the future Regional company promoting cultural exchanges while upholding the same values and identity that it has always had as a Group. Identifying and developing human talent. STRONG FINANCIAL POSITION A capital structure that ensures a sound financial structure to support the Company s sustainable growth. Development of our Corporate Role Executive Committee CEOs strategic investments Long-term strategic Expansion and synergies Financial Committee CFOs strategic investments Cash management Indebtedness and hedging M&A Consolidating the SURA trademark as a comprehensive brand of financial services and insurance solutions, in support of all the Group s lines of business in all those countries where it is present. 7

8 DIVIDENDS Grupo Nutresa 8.0% Grupo Argos 6.5% Uruguay 0.8% Peru 11.4% Other 7.7% Bancolombia 21.5% USD 345 MILLION Mexico 13.9% USD 345 MILLION Suramericana 10.1% BY COMPANY SURA Asset Management 53.9% Chile 25.8% BY COUNTRY Colombia 40.4% DIVIDEND EVOLUTION *Calculation done in a proforma basis Source: each of the companies annual report. Estimates done by Grupo SURA Figures in USD Million FX: 2, COP/USD E Bancolombia SURA AM Grupo Argos Grupo Nutresa Protección Suramericana Other 8

9 CASH FLOW GENERATION Grupo SURA generates close to USD 200 million for debt and dividend payment, and for investments 2016 (E) (1) Dividends and Other Income Operating Expenses Operating Cash Flow Interest Cash Available Figures in USD million (1) FX = COP 2, per USD

10 20. 0% 15. 0% 10. 0% 5.0% 0.0% SHAREHOLDERS 4.5% 10.5% 28.3% Grupo Argos and subsidiaries Grupo Nutresa 3.6% 10.0% 34.7% 21.6% (COMM+PREF) Colombian Pension Funds International Funds 20.4% (COMM) 10.3% Retail Investors 24.9% Institutional Investors 18.6% 12.7% TREND IN INTERNATIONAL INVESTORS % 20.5% 21.6% 14.3% % % % 1.9% Q-2016 Source: Shareholders books as of September 30th, 2016 Outstanding Ord. Shares: 469,037,260 Outstanding Pref. Shares: 106,334,963 Total outstanding shares: 575,372,223 Market Cap (USD billion): 7.5 International Funds: 850 Number of Shareholders: 14,509 Average volumen Traded 12 months Common: USD$3.4 Million Average volumen Traded 12 months Pref: USD$1.9 Million 10

11 CORPORATE GOVERNANCE AND SUSTAINABILITY HIGH CORPORATE STANDARDS Code of Good Governance in accordance with international practices. 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: Audit and Finance Committee (composed 100% of independent members) Compensation and Development Committee. Corporate Governance Committee Risk Committee 11

12 CORPORATE RESPONSIBILITY SOCIAL DEVELOPMENT 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. BUSINESS MANAGEMENT Practices used to obtain our corporate goals. PUBLIC ARENA Creating knowledge so as to strengthen the institutional structures of all those countries where we are present. A COMPREHENSIVE VIEW OF OUR CORPORATE RESPONSIBILITY We are convinced that everything we do today shall affect both our shareholders and our environment in the future. 12

13 13 BUSINESS MODEL FOCUSED ON CLIENTS VOLUNTARY SAVINGS Comprehensive service offer designed to satisfy the different needs through the life cycle. Strategies and synergies to strengthen the retention of our clients VALUE OFFER Life Cycle MANDATORY PENSIONS DISTRIBUTION Focus y Efficiency 44 MILLION CLIENTS PRODUCTS Comprehensive and specialized offer UNIVERSAL BANKING $ Equity Mandatory Pensions Protection (Insurance/ Savings) Universal Banking RETIREMENT + - LIFE CYCLE Pensions and Annuities INSURANCE ACCUMULATION DEACCUMULATION Time

14 MÉXICO REPÚBLICA DOMINICANA GUATEMALA EL SALVADOR STRATEGIC BUSINESS EXPANSION New presence including the RSA acquisition PANAMÁ COLOMBIA BRASIL PERÚ STRATEGIC INVESTMENTS CHILE URUGUAY 44 ARGENTINA MILLION CLIENTS 14

15 DEMOGRAPHIC FUNDAMENTALS YOUNG AND GROWING POPULATION INTERESTING DEMOGRAPHIC EVOLUTION IN LATAM (1) Age MM de people over 20 7% 47% (%) (%) Year Men Women MM people over 20 19% 51% Annuities Savings and accumulation period 100 LIFE EXPECTANCY EVOLUTION IN LATAM Time CAGR ECONOMICALLY ACTIVE POPULATION GROWTH Source: ECLAC and Economic Intelligence Unit Million % 2.7% 5.6% 1.9% 2.7% 0.0% Chile México Perú Colombia Uruguay El Salvador 15

16 USA Europe Chile Colombia El Salvador Mexico Panama Peru Dom. Republic Uruguay USA Europe Chile Colombia El Salvador Mexico Panama Peru Dom. Republic Uruguay FINANCIAL SERVICES PENETRATION 83.0% 84.4% 68.3% PENSION PENETRATION (% GDP) 195.1% 167.1% BANKING PENETRATION (% GDP) 19.8% 31.6% 15.7% 0.9% 19.9% 20.8% 23.5% 11.0% 76.5% 47.6% 43.6% 24.0% 89.3% 31.4% 23.1% 27.1% 45.3% USA WA OECD* Chile Colombia El Salvador Mexico Panama Peru Dom. Republic Uruguay 7.3% 6.8% CONSIDERATIONS 4.2% INSURANCE PENETRATION (% GDP) 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. 2.5% 2.0% 2.1% 3.0% 1.8% 1.2% 2.2% 2.4% 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, BID, IMF, Swiss Re Sigma Report. As of

17 GRUPO SURA CONSOLIDATED RESULTS 3Q Panama 17

18 0.0 5, , , , , 00.0 STATEMENT OF FINANCIAL POSITION CONSOLIDATED 19,282 22,580 ASSETS 10,233 13,939 SHAREHOLDER S EQUITY LIABILITIES 9,049 8, ASSETS dec-15 sep-16 19,282 2,468 22, , % Ex-RSA % sep-16 Var. $MM % Change Cash and cash equivalents % Investments 8,619 1, % Accounts receivable 1, % Technical insurance reserves - reinsurers % Identified intangible assets 1, % Other assets % Main variations 3,034 Figures in USD Million Darker bars correspond to RSA figures 18

19 0.0 5, , , , , , , , , , 00.0 STATEMENT OF FINANCIAL POSITION CONSOLIDATED LIABILITIES TOTAL SHAREHOLDER S EQUITY dec-15 10, ,706 MM 36.2% Ex-RSA dec-15 9, MM -4.5% sep-16 1,852 13, ,854 MM 18.1% sep-16 8,641 sep-16 Var. $MM %Change Financial liabilities 1, % Technical reserves 8,480 1, % Accounts payable % Issued securities 2, % Main variations 3,392 Figures in USD Million Darker bars correspond to RSA figures 19

20 0 50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5, ,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5, ,00 1,20 1,40 1,60 1,80 STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED TOTAL REVENUES sep-15 sep-16 3, , , % Ex-RSA % sep-16 Var. $ % Var % / Revenues Retained premiums (net) 2, % 55.5% Commission income % 11.8% Revenues on services rendered % 12.5% Investment income % 11.8% Revenues via equity method 224 (40) -15.1% 4.8% Exchange difference (net) % Main variations 1,177 TOTAL EXPENSES sep-15 sep-16 2, , , % Ex-RSA % sep-16 Var. $ % Var % / Revenues Retained claims 1, % -27.2% Adjustments to reserves % -13.8% Costs of services rendered % -12.6% Administrative expense % -18.0% Brokerage commissions % -7.0% Interest % -2.9% Main variations 1,007 NET INCOME sep-15 sep % Ex-RSA % Figures in USD Million Darker bars correspond to RSA figures 20

21 DEBT GRUPO SURA Repos 1.5% Banks 22.4% USD 36.8% COP 63.2% TYPE OF DEBT CURRENCY EXPOSURE* Bonds 76.1% DEBT MATURITY PROFILE Banks International Bonds Local Bonds Figures in USD Million *Includes hedges at the agreed rates 21

22 SURA ASEGURAMIENTO, TENDENCIAS Y RIESGOS SURAMERICANA S.A CONSOLIDATED RESULTS 3Q Bogotá 22

23 MEXICO % 1.4M DOMINICAN REPUBLIC (Ranking 5) 8.6 % 0.1M EL SALVADOR (Ranking 2) PANAMA (Ranking 4) SURAMERICANA S.A Market Share 19.3 % 0.6M COLOMBIA (Ranking 1) 23.8 % + 3 % 3 11M 9.1 % 0.2M Clients PREMIUM BREAKDOWN BY COUNTRY Argentina 7.0% Panama 3.2% Brazil 3.6% Mexico 4.2% Salv ador 3.0% Uruguay 1.9% Dom. Rep. 1.8% CHILE 13 % 1.6M BRASIL 1M 2015 Clients: 11 Milllion Employees: Advisers: URUGUAY Chile 12.5% 12.6 % 0.1M Clients: 15.7 Milllion Employees: Advisers: Colombia 62.9% 1 Excluding Auto Insurance 2 Estimate based on 2016 Budget, including RSA 3 In P&C 4 Premium Breakdown as of December % 0.6M 23

24 0 50 1,00 1,50 2,00 2,50 3, ,00 1,50 2,00 2,50 3, SURA ASEGURAMIENTO, TENDENCIAS Y RIESGOS SURAMERICANA S.A CONSOLIDATED FIGURES TOTAL REVENUES sep-15 sep-16 1, , % Ex-RSA % sep-16 Var. $ % Var % / Revenues Retained premiums (net) 1, % 66.5% Revenues on services rendered % 19.2% Investment income % 10.4% Main variations 882 TOTAL EXPENSES sep-15 sep-16 1, , % Ex-RSA % sep-16 Var. $ % Var % / Revenues Retained claims 1, % 35.8% Costs of services rendered % 19.4% Administrative expense % 17.1% Fees % 5.6% Brokerage commissions % 9.9% Main variations 818 NET INCOME sep-15 sep % Ex-RSA % Figures in USD Million Darker bars correspond to RSA figures 24

25 SEGMENTS PREMIUMS AND CLAIMS RATIO LIFE HEALTH CARE Premiums Retained Claims Ratio sep-16 %Var sep-16 sep-15 Life % 24.9% 20.0% Group Life % 39.0% 31.5% Pension % 98.9% 95.9% Health % 66.8% 63.8% ARL (worker c % 57.4% 51.8% ARL (worker comp.) 24.9% RSA 1.1% Other 4.4% TOTAL PREMIUMS Life 18.9% Group Life 13.6% Services rendered sep-16 %Var sep-16 sep-15 EPS % 93.4% 94.4% IPS % Dinámica % Total % Claims Ratio RSA % 8.6% 0.0% Other % 118.2% 95.4% Total 1, % 60.1% 55.6% Health 21.6% Pension 15.6% NON LIFE Premiums Retained Claims Ratio sep-16 %Var sep-16 sep-15 Auto % 67.9% 64.0% Fire % 33.5% 30.7% Mandatory roa % 59.8% 49.9% RSA % 0.0% Other % 34.5% 36.0% Total 1, % 48.9% 53.9% RSA 49.8% Other 14.1% TOTAL PREMIUMS Auto 20.5% Fire 8.3% Mandatory road accident 7.3% Figures in COP Million 25

26 SURA ASSET MANAGEMENT CONSOLIDATED RESULTS 3Q Santiago de Chile 26

27 MEXICO (Ranking 3) USD 25.2Bn 15.1 % 6.3M 3,025 SURA ASSET MANAGEMENT Nº1 in Pensions in Latinamerica EL SALVADOR (Ranking 2) COLOMBIA (Ranking 2) AUM Market Share Clients Employees USD 4.2Bn 47.2 % 1.42M 302 PERÚ (Ranking 1) USD17.8Bn 40.0 % 2.1M 1,280 USD % 25.2Bn M 1,872 CHILE (Ranking 4) USD36.8Bn 19.6 % 1.9M 2,493 AUM: USD BILLION Market Share: 23.2% (#1) Clients: 18.6 million Employees: 9,124 URUGUAY (Ranking 2) USD2.1Bn 17.8 % 316, Bn= Thousand Million 27

28 ,00.0 1,20.0 1,40.0 1,60.0 1, SURA ASSET MANAGEMENT CONSOLIDATED FIGURES TOTAL REVENUES sep-15 sep-16 1, , MM 21.2% sep-16 Var. $ %Change %/Revenue Retained premiums (net) % 46.6% Commission income % 31.6% Investment income % 18.7% Revenues via equity method % 1.9% Exchange difference (net) % Main Variations TOTAL EXPENSES sep-15 sep MM 12.8% sep-16 Var. $ %Change %/Revenue Retained claims % -17.3% Adjustments to reserves % -36.1% Administrative expense % -21.6% Interest % -2.6% Main Variations sep NET INCOME sep MM 111.4% Figures in USD Million 28

29 MANDATORY PENSION MARKET FIGURES ASSETS UNDER MANAGEMENT 5.4% -5.6% 3.0% 12.1% 13.9% 1.4% 4.3% 6.8% 16.1% 16.3% 17.2% 13.9% 8.7% 12.1% 102,429 98,213 FUND MEMBERSHIP (MM) -2.7% 17.5% -0.6% 1.3% 2.9% 4.8% 7.7% ,757 24,500 32,016 21,602 22,888 16,010 21,506 15,542 4,334 1,987 2,227 4, Chile Mexico Peru Uruguay Colombia El Salvador Total Chile Mexico Peru Uruguay Colombia El Salvador Total WAGE BASE COMMISSION FEE Figures in USD Million 11.5% 9.0% 12.1% 6.8% 21.6% 10.1% 2.1% 0.7% 11.6% 6.8% 4.7% 3.7% 9,066 10,112 6,062 6, ,426 8, ,736 2,110 28,791 26,151 Chile Peru Uruguay Colombia El Salvador Total sep-15 sep-16 %Var %Var 1.44% 1.44% 1.55% 1.55% 1.11% 1.07% 1.10% 1.09% Chile México (AUM) 1.99% 1.99% 1.18% 1.26% Peru Colombia Uruguay El Salvador sep-16 sep-15 %Change COP %Change Local Currencies 29

30 MANDATORY PENSION MAIN FIGURES COMMISSION INCOME 11.9% 1.5% 11.0% 11.9% 7.3% 2.4% 2.7% 2.5% 11.4% 2.9% RETURN ON ENCAJE 45.0% 0.0% 0.0% 18.8% 693.6% 32.7% 0.0% 0.0% 18.3% 575.6% Chile Mexico Peru Uruguay Total sep-15 sep-16 %Var %Var OPERATING EXPENSES 16.6% 3.6% 4.8% 11.9% 7.9% 6.7% 4.8% -3.1% 11.4% 3.8% Chile Mexico (4) (2) Peru Uruguay Total NET INCOME 10.6% 10.0% 47.4% 1.1% 17.3% 17.3% 1.3% 11.2% 36.2% 0.7% 17.3% 12.2% Chile Mexico Peru Uruguay Total Chile Mexico Peru Uruguay Colombia Total Figures in USD Million sep-16 sep-15 %Change COP %Change Local Currencies 30

31 VOLUNTARY SAVINGS SEGMENT MARKET FIGURES ASSETS UNDER MANAGEMENT CLIENTS (THOUSANDS) 13.7% -3.9% 72.3% 73.6% 11.5% 9.6% 15.1% 18.3% 94.6% 81.6% 11.5% 20.0% 8,608 9, % 20.8% 14.3% 66.0% 8.5% 10.4% ,495 2,835 3,222 3,360 1,770 1, Chile Mexico Peru Uruguay Colombia Total sep-16 sep-16 %Change %Var Chile Mexico Peru Uruguay Colombia Total sep-16 sep-16 %Change NET FLOW -5.9% 35.5% 0.0% 61.2% -20.6% 48.0% -4.7% 66.7% 0.0% 68.6% -20.6% 59.8% RETURNS -53.1% 58.8% 0.0% -28.6% 0.0% 120.9% -52.4% 95.4% 0.0% -25.3% 0.0% 148.5% 438 Figures in USD Million Chile Mexico Peru Uruguay Colombia Total Chile Mexico -9Peru Uruguay Colombia Total sep-16 sep-16 %Change %Var sep-16 sep-15 %Change COP %Change Local Currencies 31

32 VOLUNTARY SAVINGS SEGMENT MAIN FIGURES COMMISSION INCOME 20.7% 4.8% 22.9% 56.7% 0.0% 14.2% % 6.0% 13.5% 56.0% 0.0% 9.2% NET PREMIUMS WITH SAVINGS 26.9% 161.2% 147.8% 31.8% 16.1% % 129.0% 20.6% Chile Mexico Peru Uruguay Colombia Total Chile Mexico Peru Total Figures in USD Million OPERATING EXPENSES 2.8% 3.2% 79.7% 6.6% 0.0% 15.0% -5.9% 4.4% 66.1% 6.2% 0.0% 8.5% Chile Mexico Peru Uruguay Corporate Total NET INCOME 0.0% -12.9% 368.8% 7.8% 0.0% -12.2% 121.2% 0.0% -11.9% 333.2% 7.3% 0.0% -12.2% 99.9% Chile -0.6 Mexico Peru Uruguay Colombia Corporate Colombia sep-16 sep-15 %Change COP %Change Local Currencies 32

33 INSURANCE SEGMENT MAIN FIGURES NET PREMIUMS 20.1% 13.8% -37.1% 6.1% 9.9% 15.1% -41.9% -0.7% ADJUSTMENTS TO RESERVES 18.0% 10.5% -44.8% 3.3% 8.0% 11.7% -49.0% -3.6% Chile Mexico Peru Total Chile Mexico Peru Total RETAINED CLAIMS 43.2% 27.6% 16.2% 27.7% 31.0% 29.1% 7.4% 20.5% NET INCOME 71.6% 444.6% 126.8% 133.6% 57.0% 450.8% 109.6% 116.3% 48 Chile Mexico Peru Total Figures in USD Million Chile Mexico Peru Total sep-16 sep-15 %Change COP %Change Local Currencies 33

34 BANCOLOMBIA, GRUPO NUTRESA AND GRUPO ARGOS Medellín 34

35 BANCOLOMBIA 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 ADR Level 3 USD USD 66.4 TOTAL ASSETS 9.0 MARKET CAP 9.0 TIER I MAIN FIGURES Bn Bn % 23.4 MARKET SHARE* (COLOMBIA) DEC MM NET INCOME USD 6.2 NIM % % *By Gross Loans As of September 30th, 2016 unless otherwise stated 35

36 GRUPO ARGOS STRATEGIC OPERATIONS Cement Energy Ports Coal Real Estate Infrastructure MAIN FIGURES Holding 22.0% Cement 41.0% USD 950 EBITDA MM USD 5.2 MARKET CAP Bn Real Estate 1.0% Port Facilities 1.0% Infrastructure 11.0% DISTRIBUCIÓN EBITDA Energy 24.0% 25.3 EBITDA MARGIN % USD 135 NET INCOME MM 7.0 % DIVIDEND GROWTH Source : Grupo Argos As of September 30th, 2016 unless otherwise stated 36

37 GRUPO NUTRESA Leader in the processed food industry in Colombia and the fourth* largest in Latin America Presence in 15 countries with production plants in 12 of them In 2013 it acquired Tresmontes Lucchetti, the second largest processed food company in Chile. It also made a joint venture with Alsea to develop the Starbucks franchise in Colombia In 2015 it acquired Grupo El Corral, the largest fast food chain in Colombia Ice Cream 5.3% TMLUC 9.4% Pasta 2.5% Retail Food 8.5% DISTRIBUCIÓN EBITDA Meat 24.4% USD USD 278 EBITDA 4.0 MARKET CAP MAIN FIGURES MM Bn USD 60.8 % MARKET SHARE (COLOMBIA) 110 NET INCOME MM Chocolates 13.8% Coffee 16.0% As of September 30th, 2016 unless otherwise stated Cookies 20.1% ADR LEVEL % INTERNATIONAL SALES 37

38 CEO: DAVID BOJANINI CFO: RICARDO JARAMILLO IR MD: JUAN CARLOS GOMEZ IR Specialist: MARIA ADELAIDA OCHOA Phone: (574) GRUPO SURA App Para dispositivos móvil (App Store Google Play) 38