SURA ASSET MANAGEMENT. Corporate Presentation 3Q18

Transcription

1 SURA ASSET MANAGEMENT Corporate Presentation 3Q18

2 CONTENT 01 SURA Asset Management 02 Financial performance and comercial figures 03 Annexes SURA ASSET MANAGEMENT 2

3 SURA ASSET MANAGEMENT MAIN FIGURES MEXICO USD 27,657 M 14.8 % 7.3M 3,137 (Ranking 3) ASSET UNDER MANAGEMENT 19.6 MILLION OF CLIENTS USD BILLIONS International Investment grade: Fitch BBB+ Moody s Baa1 EL SALVADOR USD 5,070M 47.4 % 1.6 M 325 (Ranking 2) PERU COLOMBIA USD 33,554 M M 1,786 % (Ranking 2) 11.2 BILLONES 6 COUNTRIES USD 19,611 M 38.8 % 1.8M 675 (Ranking 1) Unidad Investment Management CHILE Market Share (AFP): 22.8% (Ranking 1) USD EBITDA MILLIONS USD 42,296M 19.2 % 1.8M 2,287 (Ranking 4) URUGUAY USD2,881 M 17.5 % 330Mil 139 8,493 EMPLOYEES (Ranking 2) Figures in million dollars, as of September 2018 Clients and AUM include Protección and Crecer, entities not consolidated by SURA AM SURA ASSET MANAGEMENT 3

4 A COMPANY WITH SUPPORT OF THEIR SHAREHOLDERS While the largest shareholder is Grupo Sura, we have four others shareholders, who have minority interest: Grupo Bolívar, Grupo Bancolombia, Corporación Financiera Internacional (IFC) and Grupo Wiese. SHAREHOLDERS 83.58% Grupo SURA 9.74% Grupo Bolívar 3.65% Grupo Bancolombia 3.03% Grupo Wiese SURA ASSET MANAGEMENT 4

5 GRUPO SURA OUR MAIN SHAREHOLDER FINANCIAL INVESTMENTS INDUSTRIAL INVESTMENTS 81.1 % 83.6 % 46.4 %* 35.2 % 35.7 % INSURANCE AND SOCIAL SECURITY Presence in 10 countries Specialized Company in the insurance and risk management sectors. Leader in the Insurance industry in Colombia 70 years of experience Number one Insurance Company in LATAM ex-brasil *Stake in common shares As of september 2016 PENSIONS, SAVINGS AND INVESTMENT Presence in 6 countries Nº1 in Pensions in Latinamerica Complete product offer in pensions, savings, protection and investments More than 35 years in the pension industry UNIVERSAL BANKING Presence in 6 countries Leading franchise in Colombia an Central America, markets with attractive growth perspectives ADR level 3 More than 140 years of experience Number #1 Bank in Colombia (By assets) Tenth Group most important in Latin america (by assets) Banagrícola: Number one Bank in El Salvador (by assets) Banistmo: Second largest bank in Panamá (by assets) PROCESSED FOOD Presence in 15 countries with production plants in 12 of them Leader in the processed food industry in Colombia Fourth* largest in Latin America CEMENT, ENERGY INFRASTRUCTURE AND REAL ESTATE Presence in 17 countries in Latinamerica Cementos Argos: Fifth cement producer in LATAM Fourth cement producer in USA Exports to 40 countries Celsia: Fourth power generator in Colombia, Handling concessions in Chile, Republica Dominicana, Panamá y Colombia Odinsa: road and airport concessions Concession Aeropuerto Mariscal Sucre, Ecuador (Quito) y El Dorado (Bogotá) Operation and maintenance of infraestructura assets and road projects. SURA ASSET MANAGEMENT 5

6 BUSINESS GROWTH Acquisition of 50% BBVA AFP Horizonte in Perú Adquisición de Acquisition of Primero Seguros de Vida A stock brokerage firm, Agente de Valores SURA was started up Constitution of a Stock Brokerage Sociedad Agente de Bolsa SURA BlackRock Distribution Agreement Begining of SURA AM Acquisition of ING Latam Incorporation of Asset Manager-AFISA SURA Merger between Proteccion and ING Colombia Acquisition of 63% Seguros SURA (Formerly Invita) and Hipotecaria SURA 2012 Incorporation Corredora de Bolsa SURA Annuities business Relaunch Distribution agreement with BlackRock 2013 International 10-year USD 500MM bond offering. The notes priced at a yield of 4.930% and a coupon of 4,875%. The order book was over subscribed 8.0x Distribution of insurance policies through our insurance brokerage firm (Corredora de Seguros Uruguay) Infrastructure Fund lauch by USD 400 MM Distribution agreement with Franklin Templeton 2017 Real Estate Fund Launch Distribution agreement with BlackRock Bond issue for USD 350 million Sale of annuities company in Chile Sale of insurance company Sura Peru and Mexico years of experience, with a unique knowledge in the asset management industry. SURA ASSET MANAGEMENT 6

7 Wealth WE PROVIDE A COMPREHENSIVE SAVINGS PRODUCT PORTFOLIO DESIGNED TO COVER ALL LIFE CYCLE NEEDS ($) + Life Cycle Mandatory Pensions Voluntary Savings Life Insurance and Savings Mutual Funds Securities Programmed Withdrawal Annuities ACCUMULATION PHASE DE-ACCUMULATION PHASE We support our customers on achieving their dreams and goals with our complete product offering designed to cover their needs throughout their life cycle SURA ASSET MANAGEMENT 7 7

8 UNDISPUTED LEADER IN STABLE MANDATORY PENSION BUSINESS Over 2x Market Share of Next Competitor Economic Group Region 22.8% 19.2% 14.8% 38.8% 36.9% 17.5% 47.4% Ranking 1 st Ranking 4 th Ranking 3 rd Ranking 1 st Ranking 2 nd Ranking 2 nd Ranking 2 nd 9.3% 25.0% 0.0% 10.8% 27.9% 4.4% 9.4% 7.5% 19.2% 6.8 % 22.6% 6.9% 42.8% 6.1% 18.3% 4.3% 25.5% 12.8% 4.8% 14.5% Total AUM (USDBN) Number of players Figures as of September 2018 This information is removed from superintendency of each country, which includes only AFP S AUM (Mandatory Pension, Voluntary Pension and Severance). SURA ASSET MANAGEMENT 8 8

9 STRATEGY PROVING SUCCESSFUL GIVEN GROWTH IN VOLUNTARY SAVINGS 37% Growth in Voluntary Savings in the Last 24 Months (More Than the Industry Average) Total MS (%) Voluntary Pension (1) Mutual Funds Life Insurance Annuities Growth 12 months Growth 24 months 9.9% % 7.3% 6.2% 10% 20% 9.9% 1.8% 13.7% 13.5% 0.6% 12% 17% 6.1% - 9.9% 0.1% - 3% 9% 4.8% 18.3% 3.9% 0.4% 5.4% 17% 29% 4.2% 4.3% % 9.4% 8% 18% 4.0% 19.7% 2.4% 3.7% 4.4% 13% 37% 3.5% 14.4% - 1.2% 10.7% 9% 20% 3.2% 12.5% 1.5% 1.8% 5.8% 8% 16% 3.3% - 5.3% 0.003% - 5% 14% 3.5% 1.9% 5.5% 0.1% 0.1% 33% 48% Total AUM (USD BN) % 27% Figures as of December (1) Includes Voluntary Pensions from Protección in Colombia, an entity in which we have a 49.4% ownership interest but do not consolidate SURA ASSET MANAGEMENT 9 9

10 STRONG FINANCIAL PERFORMACE MAIN FIGURES ASSETS UNDER MANAGEMENT CLIENTS sep sep-18 VOLUNTARY MANDATORY MANDATORY VOLUNTARY CAGR 2012 Sep 2018: 11.3% MANDATORY 10.3% WM-LI&A 21.8% Figures in billion dollars CAGR 2012 Sep 2018: 4.0% MANDATORY 1.4% WM-LI&A 20.3% Figures in million (*) PROTECTION S AND AFP CRECER AUM are included. while SURA Asset Management has no control over AFP PROTECTION (and therefore indirectly AFP CRECER),data from both companies are included only for information purposes, because SURA Asset Management has a significant equity stake in these. 10 SURA ASSET MANAGEMENT 10

11 STRATEGY OUR PURPOSE We accompany our clients to achieve their goals and dreams STRATEGIC GUIDELINES» Our client in the center of our strategy» Core guidelines for the development of our businesses» Capacity development through transversal enabling strategy guidelines SURA ASSET MANAGEMENT 11

12 Mandatory business Volunteer Business (Funds, WM and Insurance) Mandatory Business Asset Management Business Savings and Investment Business EVOLUTION OF THE BUSINESS MODEL to the future SURA Asset Management Chile Mexico SURA Asset Management SURA Asset Management Perú Colombia Uruguay El Salvador SURA ASSET MANAGEMENT 12

13 EVOLUTION OF THE BUSINESS MODEL INDIVIDUAL CLIENT INSTITUTIONAL CLIENT MANDATORY SAVINGS AND INVESTMENT ASSET MANAGEMENT» Mandatory pension» Severance» Voluntary Pensions» Distribution of own Mutual Funds and open architecture» Unit linked» Insurance distribution» Purchase sale of investment assets» Management of investment portfolios (Mandates and Funds)» Creation of products and services ADVICE FACILITY / ACCESSIBILITY AND RELATIONSHIP / SERVICE SURA ASSET MANAGEMENT 13

14 STRONG GROWTH POTENTIAL GIVEN FAVORABLE DEMOGRAPHICS Strong Share of Population in Savings and Accumulations Age Poised to Bolster AUM Attractive Demographics in a Fast Growing Market (1) Age MM people over 20 10% 53% MM people over (%) (%) Men Women 25% 51% Annuities Savings and and Programmed accumulati Withdrawal on period Growing Life Expectancy in LatAm (1) Growing Economically Active Population 2.0% 2.8% 2.1% 1.9% 0.7% 1.8% (Million) Chile Mexico Peru Colombia Uruguay El Salvador Source: ECLAC and Economist Intelligence Unit. (1) Population distribution for Latin America as reported by ECLAC CAGR SURA ASSET MANAGEMENT 14 14

15 FINANCIAL SERVICES PENETRATION Low Penetration of Financial Services in LatAm Result in a Growing Opportunity in the Mandatory Pension and Savings Industries 2Q16 % GDP PENSIONS % GDP MUTUAL FUNDS (1) 2015 % GDP LIFE INSURANCE 97.4% 91.0% 8.0% 70.7% 79.4% 51.0% 33.6% 2.5% 3.0% 14.7% 20.3% 21.3% 23.3% 18.6% 9.4% 3.3% 7.5% N.A. 0.3% 1.0% 0.9% 0.8% 0.6% 0.5% (2) (2) Source: AIOS, EIU, OECD, Oxford Economics, FIAFIN, World Bank Market penetration = AUM / GDP. Source: Swiss Re Sigma Report, Local Regulators. Market penetration = Net Life Insurance Premiums / GDP. (1) 2016 figures for Chile, Colombia and Mexico figures for US, UK and Peru figures for El Salvador (2) Figures as of SURA ASSET MANAGEMENT 15 15

16 Santiago de Chile FINANCIAL PERFORMANCE AND COMERCIAL FIGURES

17 STATEMENT OF FINANCIAL POSITION CONSOLIDATED 8,586 3,015 3,115 8,562 5,572 5,371 ASSET (+0.3%) LIABILITIES (+3.7%) EQUITY (-3.2%) SEP 18 SEP 18 DIC 17 DIC 17 Figures in million dollars ASSETS LIABILITIES AND SHAREHOLDERS EQUITY SEP 18 DIC 17 %Var SEP 18 DIC 17 %Var Financial assets 4, , % Technical reserves-insurance contracts 3, , % Goodwill and intangible assets 2, , % Financial Obligations and bonds , % Investments in related companies % Financial liability for hedging % Investments properties % Deferred tax liabilities % Cash and cash equivalents % Current tax % Deferred acquisition cost (DAC) % Accounts payable % Deferred tax asset % Other liabilities % Current tax % Non Current Liabilities available for sale % Non current Asset available for sale Total Liabilities 5, , % Other assets % Total asset 8, , % Shareholders equity 3, , % Figures in million dollars 17

18 STATEMENT OF FINANCIAL POSITION DEBT DEBT EBITDA - YTD DEC 17 SEP 18 1, ,014.1 SEP % -4.3% SEP CLP COP 1.8% 9.2% CURRENCY EXPOSURE* Financial liability hedge 1% Financial Obligations 14% TYPE OF DEBT 2.1x 1.6x 7.4x DEBT / EBITDA LTM (GROSS NET) EBITDA YTD / INTEREST USD 89.0% Figures in million dollars 2017 EBITDA is restated at exchange rates of September 2018, to eliminate the effect of conversion rates. Bonds issued 85% 6.4% 6.5% 6.4% COST OF DEBT (USD with hedge COP Total) 18

19 SURA ASSET MANAGEMENT CONSOLIDATED INCOME STATEMENT SEP 18 SEP 17 % Var %Var Excl - Forex effects Fee and commission income % 7.5% Investment income % -20.3% Gains and losses at fair value % -94.0% "Encaje" return % -64.8% Income (Expense) of Equity Method % -25.9% Other operating revenue % -16.3% Operative revenues for pension funds administration % -3.1% Gross premiums % -41.6% Premiums ceded to reinsurers (11.7) (7.8) 50.6% 44.9% Net Premiums % -42.8% Proceeds from investments backing reserves % 28.6% Gains and losses at fair value backing reserves % -40.5% Claims (292.9) (251.4) 16.5% 12.6% Movement in premium reserves (167.2) (421.1) -60.3% -61.5% Insurance Margin % 22.3% Gastos operacionales de ventas (108.5) (100.4) 8.2% 6.2% Costos de Adquisición Diferidos -DAC (6.0) (4.6) 30.7% 37.2% Operating and administrative expenses (283.7) (272.3) 4.2% 3.0% Wealth tax (0.1) (7.5) -98.3% -98.3% Total operating expenses (398.4) (384.8) 3.5% 2.2% Figures in million dollars Operating income % -5.6% Financial income % 66.1% Financial expense (41.7) (47.0) -11.4% -12.3% Income (expense) financial derivatives (9.1) % % Income (Expense) on exchange differences 11.7 (12.0) % % Net earnings before income tax % 0.6% Income tax (67.4) (85.7) -21.3% -22.0% Profit for the year from continuing operations % 14.2% Profit for the year from discontinued operations % -94.1% Net earnings for the year % 7.7% 19

20 SURA ASSET MANAGEMENT CONSOLIDATED FIGURES OPERATIVE INCOME FOR PENSION FUNDS ADMINISTRATION INSURANCE MARGIN sep % < -3.1% sep % < 22.3% sep sep OPERATING EXPENSE NET INCOME sep sep % < 2.2% 9.2% < 7.7% sep sep Figures in million dollars sep -17 sep -18 %var %Var. Excl. Forex effect SURA ASSET MANAGEMENT 20

21 SEGMENTS MAIN FIGURES MANDATORY sep 18 sep 17 %Var %Var Excl - Forex effects Fee and commission income % 6.6% "Encaje" return % -65.0% Income (Expense) of Equity Method % -31.8% Operative income for pension funds administra % -4.3% Total operating expenses (230) (221) 3.9% 3.1% Operating income % -9.4% Income tax (74) (79) -6.5% -7.2% Net earnings for the year % -8.2% VOLUNTARY sep 18 sep 17 %Var %Var Excl - Forex effects Fee and commission income % 15.1% Income (Expense) of Equity Method % 68.4% Insurance Margin % -3.9% Total operating expenses (84) (77) 0 0 Operating income (3.4) (6.7) -48.9% -48.3% Income tax (2.4) (0.2) % % Net earnings for the year (5.4) (4.4) 23.8% 25.2% Figures in million dollars INSURANCE sep 18 sep 17 %Var %Var Excl - Forex effects Net Premiums % -55.2% Proceeds from investments backing reserves % 29.9% Claims (113) (95) 18.6% 15.6% Movement in premium reserves (123) (291) -57.7% -58.7% Insurance Margin % 33.9% Total operating expenses (27) (25) 0 3.0% Operating income % 100.0% Net earnings for the year % -35.0% CORPORATE sep 18 sep 17 %Var %Var Excl - Forex effects Total operating expenses (58) (61) -5.8% -7.2% Financial expense (40) (45) -11.8% -12.7% Income (Expense) financial derivatives (2) % % Income (Expense) on exchange differences 9 (10) % % Income tax 11 (2) % % Net earnings for the year (71) (111) -36.0% -36.8% SURA ASSET MANAGEMENT 21

22 MANDATORY MAIN FIGURES FEE AND COMMISSION INCOME 7.4% 8.6% 8.2% -3.8% 7.5% 3.3% 9.4% 8.1% 1.7% 6.6% ENCAJE RETURN -59.6% -40.8% -96.8% -57.2% -64.5% -61.2% -40.4% -96.8% -54.7% -65.0% Chile Mexico Peru Uruguay Total OPERATIVE EXPENSES 16.1% -2.2% 1.5% -13.2% 3.9% 11.7% -1.5% 1.4% -8.3% 3.1% Chile Mexico Peru Uruguay Total NET INCOME -12.7% 20.7% -11.7% -8.0% -33.9% -7.0% -16.1% 21.6% -11.8% -2.7% -35.2% -8.2% Chile Mexico Peru Uruguay Total sep -17 Figures in million dollars sep -18 %var %Var. local currency Chile Mexico Peru Uruguay EM Protección y AFP Crecer Total SURA ASSET MANAGEMENT 22

23 MANDATORY COMMERCIAL FIGURES ASSET UNDER MANAGEMENT AFFILIATES (MILLION) 1.1% 6.6% 1.0% -1.1% 9.0% 8.7% 4.4% 3.6% 9.0% 2.1% 12.9% 10.3% 8.7% 6.6% -3.0% 5.3% -8.4% 1.0% 4.3% 4.4% 2.47% 122, , ,280 37,870 26,695 18,354 25,051 18,173 2,736 2,766 30,973 28,423 5,070 4, Chile Mexico Peru Uruguay Protección El Salvador Total Chile Mexico Peru Uruguay Protección El Salvador Total SALARY BASE FEE 7.74% 5.65% -0.65% 10.30% 4.95% 7.60% 3.6% 5.5% 5.0% 8.3% 5.0% 5.7% 31,347 29,135 10,934 10,371 10,148 6,753 9,403 6,392 2,215 1,074 1,081 2,110 Chile Peru Uruguay Protección El Salvador Total 1.99% 1.87% 1.42% 1.55% 1.55% 1.44% 1.26% 1.03% 1.09% 1.02% 1.04% 1.15% Chile Mexico Peru Uruguay Protección El Salvador Figures in million dollars Figures include Protección and Crecer, entities not consolidated by SURA AM sep -17 sep -18 %var %Var. local currency SURA ASSET MANAGEMENT 23

24 VOLUNTARY MAIN FIGURES FEE AND COMMISSION INCOME 12.7% 9.3% 77.4% 58.8% -10.8% 17.1% 8.4% 10.1% 77.2% 67.9% -12.4% 15.1% NET PREMIUMS WITH SAVINGS -23.8% -5.7% -26.7% -9.6% Chile Mexico Peru Uruguay Colombia Total Chile Total OPERATIVE EXPENSES 9.3% 9.8% 13.2% -28.5% 59.3% 9.0% 5.1% 10.6% 13.1% -24.4% 56.4% 6.9% Chile Mexico Peru Uruguay Corporate and others Total Figures in million dollars sep -17 sep -18 %var %Var. In local currency SURA ASSET MANAGEMENT 24

25 VOLUNTARY COMMERCIAL FIGURES ASSET UNDER MANAGEMENT CLIENTS (Miles) 3.5% 26.5% 17.8% 27.7% 11.2% 13.5% 13.5% 6.1% 29.3% 19.1% 45.7% 12.5% 16.1% 14.9% 16,789 14, % 20.4% 9.8% 3.3% 16.2% 1,265 1,120 4,016 3, ,258 1, ,239 9,900 2,581 2,321 Chile Mexico Peru Uruguay Protección UIM Total Chile Mexico Peru Uruguay Protección Total NET FLOW -33.6% 12.5% -70.3% -72.5% -28.6% -37.0% -31.9% 15.1% -69.9% -68.7% -27.8% -35.5% 733 RETURN % % 0.00% % % % -33.7% -49.3% 0.0% -17.2% -65.1% -51.8% Chile Mexico Peru Uruguay Protección Total sep -17 sep Chile Mexico Peru Uruguay Protección Total SURA ASSET MANAGEMENT 25 %var %Var. In local currency

26 Santiago de Chile ANNEXES

27 SURA ASSET MANAGEMENT RECURRING INCOME AND EBITDA REAL FX YTD RESULTS RECURRING INCOME SEP 18 SEP 17 % Var %Var Excl - Forex effects EBITDA SEP 18 SEP 17 % Var %Var Excl - Forex effects Net Income without non-recurring items % 160.0% Utilidad discontinua Non-Recuerrent Items (0.1) (2.0) (0.9) 0.0% Wealth tax (0.1) (7.7) -98% -98.3% Wealth tax impact in Protección s equity method (1.7) -100% % Tax benefit AFP Capital Provisión COFECE México Misys (14.5) Net Income without non-recurring items % 127.3% Underlying Result Before minority interest % 301.5% +Depreciation and amortization % 212.8% Consolidated EBITDA % 135.5% EBITDA without "Encaje" % 315.6% Margin Ebitda without " Encaje" 7.5% 30.6% -75.6% Non-Cash Items Intangible asset amortization (ING and Invita) (26.8) (29.2) -8.1% -8.1% Deferred tax intangible asset (ING and Invita) % -6.4% Intangible asset amortization (Horizonte) 5.3 (5.3) % % Deferred tax intangible asset (Horizonte) (1.5) % % Income (expense) exchange difference 11.6 (12.3) % % Income (expense) financial derivatives (9.1) % % Net Income after non-recurring and noncash items % 77.2% Encaje "return" % -64.8% Net Income after non-recurring and noncash items-without encaje "return" % 302.4% Figures in million dollars 27 SURA ASSET MANAGEMENT 27

28 SURA ASSET MANAGEMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASSETS SEP 18 DIC 17 Var% Financial assets 4, , % Goodwill 1, , % Other intangible assets % Investments in associates % Investment properties % Accounts receivable % Deferred acquisition costs (DAC) % Cash and Cash equivalents % Deferred tax assets % Current tax % Fixed assets % Financial asset for hedging % Activos por contratos de reaseguros % Others % Non Current Assets held for sale TOTAL ASSETS 8, , % LIABILITIES SEP 18 DIC 17 Var% Technical reserves 3, , % Bonds % Financial obligations % Financial liability for hedging % Deferred tax liabilities % Current tax liabilities % Accounts payable % Employee benefits % Deferred income liabilities (DIL) % Provisions % Other liabilities % Liabilities of a disposal group classified as held for TOTAL LIABILITIES 5, , % SHAREHOLDERS EQUITY Subscribed and paid-in capital % Share premium 3, , % Other capital reserves % Other comprehensive income % Net income from the year % Translation differences (988.9) (855.9) 15.5% Total controlling interest 3, , % Non-controlling interest % TOTAL EQUITY 3, , % Figures in million dollars TOTAL LIABILITIES AND SHAREHOLDERS 8, , % 28 SURA ASSET MANAGEMENT 28