Bolsa de Valores de Colombia Corporate Presentation 2018

Transcription

1 Bolsa de Valores de Colombia Corporate Presentation 2018 Jan

2 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 2

3 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 3

4 Bolsa de Valores de Colombia We are the strategic partner of the financial and capital market sectors in technology, information, trading and post-trading services Our Value Proposition Our Regional Presence Our Strengths Z Z Z Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation Equities Fixed Income Derivatives FX OTC Issuer Services Clearing Settlement Custody Market Data Assets Valuation Risk Management Tools Trading Systems Electronic Access Consultancy: Core Banking Treasury Capital Markets Shareholding 50% 94% 47% 31% 100% 54% Revenues Growth 12% CAGR Diversified Revenues 31% 41% Capital Technology Markets LTM 3Q17 Solutions ROE Profitability LTM 3Q17 ROA 21% 15% Values for Shareholders 4.15% Dividend Yield

5 Our Business Lines A complete service portfolio throughout the whole value chain Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation Growth Drivers Turnover - Interconnected Markets - Efficiency & Market Integrity Massification IT & Info Services that support Automation Regional Scope 5

6 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 6

7 Capital Markets We organize markets to ensure their eligibility We use technology to foster growth, facilitate the execution of trading strategies, and bring access to more participants Volume & Transaction Driven Revenue Business Line Revenue Contribution Fixed Income Market: Electronic trading and OTC registration services on public & corporate debt, money market, primary market for corporate debt Equity Market: Electronic trading on cash equities, securities lending, repos, ETFs, and foreign securities FX Market: Electronic trading, OTC registration services and hybrid platforms (electronic/voice) on: Spot Dollar, Next Day dollar, Forwards/Swaps and Options Derivatives Market: Electronic trading and OTC registration services on futures (interest rates, equities, fx) and swaps LTM 3Q17 22% Capital Markets Revenue 48,7 46,6 47,1 52,1 50,9 50,2 Revenue growth CAGR ,3 5,0 11,9 14,1 5,1 5,8 15,8 15,7 15,2 7,2 6,7 7,4 Capital Markets: 3% Derivatives: 50% FX: 15% Equity Market: -11% Fixed income: -1% 22,4 19,2 15,5 16,8 16,6 15,1 11,0 10,4 11,5 12,4 11,9 12,4 *Figures in COP$ Trillions *As of LTM 3Q LTM 2016 LTM 2017 Fixed Income Equity Market FX Derivatives 7

8 Capital Markets We organize markets to ensure their eligibility We use technology to foster growth, facilitate the execution of trading strategies, and bring access to more participants Fixed Income Equity Market Our Results CAGR 13-17: -2.4% CAGR 13-17: -4,3% 1,2 1,4 5 6 Fixed Income Market 100% corp. debt market share 52% Gov debt market share Equity Market 100% market share 27% volume traded by foreigners Electronic OTC Cash Equity Repos Securities Lending Derivatives Market Futures: 13% market share OTC: 52% market share 37% traded by 3 rd parties FX Market 72% market share 100% share of electronic trading FX (USD Billions) Derivatives (Volume) Capital Markets Strategy: CAGR 13-17: -1.1% CAGR 13-17: +20,3% Foster turnover liquidity Automate order management + interconnect markets Stimulate multi-market strategies Improve markets structure and quality Reach more investors Standardized OTC Traded Volume in COP$ Trillions. Since 2015 Fixed income market includes Set- ICAP Securities Derivatives Includes: Standardized (futures) and OTC (NDF, Swaps) 8

9 Issuer Services The Colombian Capital Market is a strong financing alternative for companies Recurring Revenue Business Line: Securities listing: Fixed income: Listing and annual maintenance fees vary for type of security and sector. Financial institutions (fixed fee) and real sector (% of the amount issued or in stock) Equities: Listing and annual maintenance fees are priced according to shareholder s equity as of Dec 31 of each year Issuances and public offerings: IPOs, Follow-Ons, Fixed income issuances, Tender Offers Deposit of Issuances: dematerialized issuance of Equities, Fixed Income, private equity funds, shareholders administration and book registry services. Training & Events Issuer Services Revenue The BVC promotes among listed companies the adoption of best practices on disclosure and investor relations (IR). IR Recognition is the guidance for the Colombian securities market adopted voluntarily by the BVC issuers. Revenue Contribution LTM 3Q17 22% 23,3 24,8 22,8 29,1 27,3 25,5 8,4 2,4 7,5 4,8 7,6 3,4 8,7 8,4 8,6 7,9 6,4 3,8 Revenues growth 6% CAGR ,5 12,5 11,8 12,5 12,6 13, LTM 2016 LTM 2017 *Pro Forma figures in COP$ Trillions * As of LTM 3Q17 Annual Listing Fees Listing Services Deposit of Issuances 9

10 Issuer Services The Colombian Capital Market is a strong financing alternative for companies 0,2 2,7 Total Amount Issued (COP Trillions) 0,5 6,6 9,3 10,0 1,2 0,3 5,9 CAGR 13-17: +4,4% 13,1 0,4 9,7 0,4 1,2 12, Fixed Income Equities Public Offerings # of Listed Issuers Fixed Income Equity ETF Issuances COP$73 trillion Dematerialized Issuances Our Results IR Recognition issuers 26 reporting sustainability on GRI $471 Trillion 343 Dematerialized Issuances (COP Trillions) Innovation Development of electronic systems that promote and guarantee transparency (book administration, Dutch auctions and other mechanisms for asset allocation) Issuer Services Strategy: Specific financing needs / liquidity on equities and fixed income Marketplace lending: mini bonds for SMEs 10

11 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 11

12 Post-Trading Services Business Lines Custody: Safekeeping and administration of local and international securities, maintaining the confidentiality of information. Securities Administration: Collection of property rights: principal, interest, returns of dividends for any securities deposited with us. Revenues by Business Line Transactions: Free of payment (FOP): Records the securities in the accounts and sub accounts of the direct depositors. Delivery versus payment (DVP): Offers the opportunity to transfer the securities only if the counter party completes the payment of the transaction. Delivery versus delivery (DVD): Automatic transaction that allows for the exchange of securities for securities. Revenue Contribution 18% LTM 3Q ,7 1,5 2,3 0,6 1,4 2,1 0,7 1,2 2,2 0,7 1,2 2,6 0,7 1,3 2,7 5,2 7,5 5,2 6,0 6, Custody Securities Administration Transactions Others *Pro Forma Figures in COP$ Trillions 12

13 Post-Trading Services We are consolidating the Colombian capital markets value chain Securities Under Custody (COP Trillions) Securities Administration (COP Trillions) Securities Custody Main Services: $487 Trillion Securities Administration $130 Trillion Issuers 198 custodians Transactions (Millions) 1,7 1.4 Million Transactions $702 Trillion 1,6 1,6 1,5 1, Source: DECEVAL 13

14 Post Trading Services Multi-asset Class Exchange Across All Market Infrastructure Regional Benchmarking Regional Turnover (USD Billions)* Capital Markets Equities Fixed Income Derivatives FX Market Cap Equities Fixed Income Post Trading Clearing & Settlement Custody 0, ,5 Information Assets under Custody (USD Billions) Technology bvc now has a stronger position to organize and modernize the Colombian capital market infrastructure to react to industry dynamics Indeval DCV Deceval BYMA Cavali Source: Company information, WFE and FIAB as of December

15 Post-Trading Services We are consolidating the Colombian capital markets value chain Where are we going? What are we doing? Growth Drivers Corporate integration with Deceval: Integration of the Colombian capital market infrastructure starting with the private Central Securities Depository Turnover - Interconnected Markets - Efficiency & Market Integrity - Massification Vertical integration: Optimize value chain processes, maximize efficiencies and expand product offering Integration with Clearing Houses Generate efficiencies in the Colombian capital market infrastructure: Reducing costs and enhancing the offering of more affordable, modern and reliable business solutions Organize new C&S framework: CCP for equities, multilateral settlement for fixed income Reliable and efficient C&S processes: Process optimization, custodians management, settlement by cycles, SAE Automate C&S processes: C&S complete cycle - Straight-Through-Processing, BaaS Facilitate C&S Cross-border mechanisms Our Results Dividends paid in 2017 from Long-term Investments & Subsidiaries increased by +65% YoY (COP$ 18billion) +1,5 million Transactions cleared and settled per year Largest individual shareholder of the entities in the capital markets value chain Shareholding: Deceval: 94% CRCC: 32% CCDC: 31% 15

16 Post-Trading Services Consolidating the Colombian capital markets value chain CRCC & CCDC Amount C&S Contracts C&S CRCC is the central counterparty for the Colombian capital market; provides C&S services for derivatives and money market $34 Trillion 1.8 Million CRCC Revenues CCDC Revenues CAGR 12-16: +20% CAGR 12-16: +13% % Revenue Distribution 3% C&S Services Others 97% 85% LTM 2016 LTM 2017 Amount C&S Transactions C&S CCDC provides clearing services for the foreign exchange market in Colombia US$270 Billion 408K 43% 29% 29% 27% CRCC EBITDA 5 26% 3 22% 2 2 CCDC EBITDA 38% 6 35% 3 41% 31% 6 38% 3 32% 29% 25% CRCC RoA CRCC RoE CCDC RoE CCDC RoA 35% 33% 32% 27% 26% 26% 29% 26% 23% 23% 10% 11% 9% 6% 6% 1% 0,5% 2% 2% 4% 4% 1% LTM 2016 LTM LTM 2016 LTM 2017 Source: CRCC & CCDC C&S figures as LTM 3Q17 Financial Figures as of LTM 3Q17 COP$ Billions 16

17 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 17

18 Information Services Information and knowledge at the service of financial and capital markets We use technology, analytics and digital marketing to grow our business and provide broader access Fee-Based & Subscription Revenue Business Line Revenue Contribution Terminals: market screens Knowledge services: Intermediary Access: electronic access service for trading, back office, custodians, and infrastructure providers Market Data: real-time information for vendors, development & licensing of indices, e-bvc (web & app) Information Services Revenue Main securities pricing vendor in Colombia Products: Valuation of market securities and other non-liquid assets Risk and portfolio management tools Indices Mutual funds data Academic Line: market training, virtual courses, academic program for retail investors, certifications Contests and simulators: universities & schools Digital strategy: websites and social media LTM 3Q17 10% Revenue growth CAGR ,8 16,1 18,9 22,7 22,5 23,1 1,4 1,3 1,3 1,2 7,0 6,7 7,3 0,9 1,1 4,9 4,0 4,1 10,1 10,2 10,2 8,8 5,7 6,7 1,6 1,7 1,7 1,7 2,8 2,6 2,6 2,6 2,5 2,7 Information Services: 16% Market Data: 25% Infovalmer: 33% Infovalmer 41% EBITDA margin LTM 3Q LTM 2016 LTM 2017 Terminals Intermediary Access Market Data Price Vendor (Infovalmer) Education *Figures in COP$ Billions *As of LTM 3Q17 18

19 Information Services Information and knowledge at the service of financial and capital markets We use technology, analytics and digital marketing to grow our business and provide broader access # of Vendors % Electronic orders SAE Our Results CAGR 13-17: +15% % 8% 6% 4% 36% 92% 92% 94% 96% 64% SAE Terminals 96% Daily Electronic orders through SAE +10 intl. indices Alliance BlackRock Infovalmer Assets valuated Participants educated at the BVC ,0 AUM ETF icolcap (COP Trillions) 2,5 1,5 2,7 3,7 # of Participants in BVC courses (thousands) CAGR 13-17: +57% 16,4 54,5 67,9 86,6 99,5 Information Services Strategy: Financial information Hub Analytics and second-generation services Real time data for risk management and automated trading Broader access through education and digital channels 19

20 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Post-Trading Services Information Services Technology Solutions & Innovation BVC Financial Highlights 20

21 Technology Solutions & Innovation We enable financial industry capabilities We deliver IT innovation and digital solutions for financial and capital markets Where are we going? What are we doing? Enable market platforms: Trading and post-trading Enable electronic market access: Interconnected Markets Explore and appropriate new technologies: Digital channels, cloud services, algo-trading and analytics Expand the IT solutions offering for the financial market Revenue Contribution 28% LTM 3Q17 Growth Drivers Turnover - Interconnected Markets - Efficiency & Market Integrity - Massification Shared Services: Modernization and IT consolidation for Infrastructure providers Broker-as-a-Service: Back Office, Master Trader and digital services Fintech: Investment and financing technologies, Blockchain Integrated Services BVC + Sophos: IT solutions for Capital Markets In 2017 Migrating to: Nasdaq X-stream INET New Features: Single trading platform for equities, derivatives, fixed income and MILA Pre-trade risk management Market monitoring capabilities Algorithmic and HFT protocols 21

22 Sophos Leverages our IT Strategy A regional player specialized in IT services for banking, capital markets and digital channels Revenue Contribution Recurring Revenue Business Line Regional experience and in depth knowledge of our clients business 15 years experience 20 clients in Colombia and 8 clients in Latin America ISO 9001 & CMMI Regulatory and industry expertise Sophos Revenue 21,4 25,2 Specialized implementation and integration services Core banking solutions Treasury solutions Credit & debit cards processing solutions Digital channels Design, development and testing 21,4 26,6 35,7 62,3 2,9 31,8 5 1,1 4,2 52 Partner of the leading worldwide providers LTM 2016 LTM ,9 2,4 2,3 4,7 43,5 65,7 1,2 3,7 57,6 28% LTM 3Q17 Revenue growth 32% CAGR EBITDA growth 44% CAGR EBITDA margin 22% LTM 3Q17 Net margin 11% LTM 3Q17 *Figures in COP$ Billions *As of LTM 3Q17 Colombia Mexico Chile Panama 22

23 Technology Solutions & Innovation Master Trader Project - BVC Trading Platform Upgrade All Markets in One Single Trading Platform GR G.R. Pre-Trade Phase 1: 1Q18 Phase 2: 3Q18 Current Trading Infrastructure 78% Progress Master Trader: Fixed Income Market Master Trader: All Markets MEC Plus X-stream TW Fixed Income Public Debt Fixed Income Private Debt MEC Plus 8.1 Equities Derivatives X-stream CLASSIC Integrated Platform X-stream TW Fixed Income Public Debt* X-stream INET Fixed Income Private Debt MEC Plus 8.3 Equities Derivatives X-stream CLASSIC Integrated Platform Fixed Income Public Debt* Equities Derivatives MILA X-stream INET UTrader MILA Rapid Addition UTrader MILA Rapid Addition Optimized Trading Infrastructure Fixed Income Private Debt MEC Plus 8.3 *Includes: Primary and secondary market Dates could be subject to change Migrating to: Nasdaq X-Stream INET New Features: Single trading platform for all Markets Pre-trade risk management Market monitoring capabilities Algorithmic and HFT protocols 23

24 BOLSA DE VALORES DE COLOMBIA - BVC Overview Our Business Lines: Capital Markets & Issuer Services Technology Solutions & Innovation Information Services Post-Trading Services BVC Financial Highlights 24

25 Financial Highlights Attractive Pro Forma Financial Profile Enterprise Value: COP $708 Trillion Stock Transaction Price: COP $25,12 * New Shares Outstanding: LTM Op. Revenues COP $156 COP $76 Combined Pro forma COP $232 Balance Sheet and Dividend Policy Strong combined balance sheet with no financial debt Attractive dividend policy: ordinary dividend 70% and extraordinary dividend 30% LTM EBITDA LTM Net Profit COP $43 COP $27 COP $41 COP $25 COP $84 Cash and Earnings Generation Solid combined cash generation profile Enables an attractive dividend policy and future investments growth opportunities 3Q17 Cash Flow COP $26 COP $24 Synergy Opportunities COP $7 $8 billion annual cost synergies expected to be realizable by the end of 2019, significant savings related to business optimizations 35% of synergies benefits expected to be transferred to all market participants from 2018, via trading services Revenue synergies from Deceval representing an additional 33% of BVC consolidated revenues (LTM 3Q17) Significant additional revenue growth thanks to the development of new products and services like electronic invoice, promissory notes, SMEs financing platform among others. 169 LTM 3Q17 Total Revenue Benchmarking (USD Millions)** BMV BVC BYMA BCS BVL Pro forma consolidated financials and Pre-synergies as of LTM 3Q17 in COP $ Billions *calculated using the average closing price for bvc s share for the ninety (90) calendar days prior to the closing date **bvc: Pro forma Operating Revenues and Pre synergies as of LTM 3Q17 in USD $ Millions Source: Company information 25

26 Financial Highlights Combined Business well Diversified and Attractive Revenue Mix Consolidated 0% 1% 42% Operating Revenues COP $156 Billion 11% 32% 13% 33% 4% 6% Operating Revenues COP $76 Billion 44% 28% 17% Operating Revenues COP $232 Billion 22% 22% 15% 10% Capital Markets Information Services Other Revenues Issuer Services IT Solutions Deposit of Issuances Securities Administration Other Revenues Custody Transactions Capital Markets Information Services Post-Trading Issuer Services IT Solutions Other Revenues Expansion of recurrent revenues in post-trading, maintaining the potential upside in trading revenues creating greater scale and financial strength Pro forma Operating Revenues and Pre synergies as of LTM 3Q17 26

27 Financial Highlights Combined Business well Diversified and Attractive Revenue Mix Revenue by Business Line 1% Revenue by Company 1% Revenue by Type 17% 22% 3% 9% 27% 24% 27% 28% 22% 33% 76% 10% Capital Markets Information Services Post-Trading Issuer Services IT Solutions Other Revenues BVC Sophos Set Icap FX Deceval Infovalmer Set Icap Securities Trading Revenues Non-Trading Revenues Resilient, attractive and diversified revenue mix across Colombian market infrastructure Valuable portfolio businesses expansion through organic initiatives and acquisitions Greater participation of non-trading revenues reducing volatility and increasing resilience Pro forma Operating Revenues and Pre synergies as of LTM 3Q17 27

28 BVC Ownership Structure Foreign shareholders represents 28% of BVC s ownership Shareholders Distribution Banks 47% Foreigners 28% Brokerage Firms 8% Pension Funds 9% Real Sector Universities 2% 4% Individuals 2% Mutual Funds 0,2% Less Than 1% Shareholder's Distribution 899 Shareholders 5 Shareholders 24% Ownership Between 5% - 10% 18% Ownership Between 1% - 5% 17 Shareholders 58% Ownership Total 921 Shareholders January 2018 BVC Stock: Listed since June 22th Free Float: 50%* Stock type: Common voting shares Shares outstanding: Ownership Restriction: 10% shareholding restriction of the BVC according to Colombian law 510 of All brokers must have 91 million shares (0,3%) to trade at the Colombian market. Board of Directors 7 13 Members 6 *According to the article of decree 2555 Non-Independent Members Independent Members As of January

29 Thank You For further information please contact: Carlos Barrios Director of Investor Relations Office & Corporate Social Responsibility Bolsa de Valores de Colombia Tel. (+57 1) Ext

30 Appendix 30

31 Diversified Revenues Distribution Strategy 74% from recurrent revenues Total Revenues 232 CAGR 08-16: +13% LTM 2016 LTM 2017 RECURRENT REVENUES 74% 13% 3% 14% 15% Total Revenue COP$53 Billion 55% 20% 12% 8% Total Revenue COP$82 Billion 15% 45% 28% 17% 1% Total Revenue COP$ 232 Billion 10% 22% 22% Issuer Services Information Services Technology Solutions and Innovation REVENUES TIED TO MARKET ACTIVITY 26% Capital Markets: Fixed Income FX Equities OTC Derivatives *Figures in COP$ Billions * Includes Deceval combined Pro Forma and Pre Synergies as of LTM 3Q17 31

32 BVC Financial Highlights 59% 58% 43% EBITDA CAGR 12-16: +6% 53% 55% 53% 54% 35% 35% 30% 32% Net Profit 31% 31% CAGR 12-16: +3% 31% 28% 37% % 33% 33% % % 20% % 21 17% LTM 2016 LTM 2017 EBITDA BVC EBITDA DECEVAL EBITDA Margin BVC EBITDA Margin DECEVAL BVC and Deceval have no financial debt Balance Sheet Assets Liabilities Shareholder's Equity *Figures in COP$ Trillions *BVC and Deceval consolidated results as of LTM 3Q LTM 2016 LTM BVC DECEVAL LTM 2016 LTM 2017 Net Profit BVC Net Profit DECEVAL Net Margin BVC Net Margin DECEVAL 38% 37% 28% 28% 23% 18% 25% 20% 22% RoE - RoA 30% 30% 30% 24% 23% 24% 24% 16% 17% 16% LTM 2016 LTM % RoE BVC RoA BVC RoE DECEVAL RoA DECEVAL 33% 22% 21% 15% 32

33 BVC Financial Highlights 16,5 11,9 14,1 11,5 11,5 8,1 Ratios 12,3 11,50 7,6 7,31 14,78 9,35 1,42 4,8% 1,42 6,3% EPS / Dividend Yield ,2% 5,2% CAGR 12-16: -11% 4,15% 3,8 3,6 2,5 3,0 2,91 3,77 0,89 0,89 0, LTM 2016 LTM 2017 P / E EV / EBITDA P / BV Benchmark 40, EPS Div. Yield Payout ratio % 100% 127% 67% 71% 71% CAGR 12-16: +39% 33 Cash Flow 19,0 6,9 4,3 21,9 15,8 2,0 18,7 17,9 12,7 9,6 3,4 2,4 19,6 15,1 4,0 10,79, P/E EV/EBITDA P/BV *Figures in COP$ Trillions *Only bvc consolidated results as of LTM 3Q17, Deceval not included. *Benchmark: As of December 2017, Source: Bloomberg LTM 2016 LTM 2017 Consolidated Figures in $COP Billions 33

34 Business Model: BVC is a multi-asset Exchange with presence along the value chain of the Colombian capital market MARKET EQUITIES FIXED DERIVATIVES CURRENCIES INCOME TRADING OTC / SEN OTC OTC CLEARING SEN SETTLEMENT BR d CRCC (1) BR BR CUSTODY BR: Colombian Central Bank 34

35 Colombian Capital Market MARKET Colombia USA TRADING Multiple Trading Venues CLEARING SETTLEMENT CSD REGULATION SEC BVC has shareholdings along the capital market value chain. Clearing, settlement and central depository at the final beneficial owner level increase confidence in the Colombian market. Regulation prohibits internalization of orders, dark pools d and OTC equities trading. Naked short selling and naked access are not allowed for over night transactions. Omnibus accounts are not permitted except for MILA. Settlement & Clearing is bilateral between the Exchange and the CSD in Equities and Fixed income market Clearing, settlement and custody occur at the brokerage houses. Each prime broker has its own d structure to control its customers portfolios and settle positions (impact on the prime broker s costs). BR: Colombian Central Bank 35

36 Colombian Macroeconomic Ratios GDP Growth Inflation (%) 4,6% 6,8% 4,3% 5,8% 3,1% 2,0% 2,0% 3,7% 4,1% 1,9% Central Bank Repo Rate (%) 7,50% 3.100, FX Rate 4,50% 5,75% 4,75% 4,50% 2.844,00 Jan ,25% 2.900,00 Var YoY YTD MoM -3,2% -1,8% -4,7% * 2.700,00 *Central Bank Intervention Rate as of January

37 Colombian Macroeconomic Ratios 300 AUM Pension Funds (COP Trillions) AUM Distribution (%) 250 CAGR 12-16: 11% Cash and Derivatives 3% Foreign Equity Market 27% Local Fixed Income 45% Foreign Fixed Income 6% Local Equity Market 19% Multi-fund Scheme since More than 29 Million affiliates COLOMBIA RATING EVOLUTION MOODY'S S & P FITCH RATING DATE RATING DATE RATING DATE Ba1 (Positive) 9-Sep-10 BB+ (Positive) 7-Jul-10 BB+ (Stable) 21-Jun-07 Baa3 (Stable) 31-May-11 BBB- (Stable) 16-Mar-11 BB+ (Positive) 14-Oct-10 Baa3 (Positive) 8-Jul-13 BBB- (Positive) 15-Aug-12 BBB- (Stable) 6-Mar-13 Baa2 (Stable) 28-jul-14 BBB (Stable) 24-Apr-13 BBB (Stable) 10-Dec-13 Baa2 (Stable) 26-may-16 BBB (Negative) 16-feb-16 BBB (Stable) Jan-Aug-Nov 14 Baa2 (Stable) 29-jun-17 BBB (Negative) 18-Jan-17 BBB (Stable) May-Dec 15 Baa2 (Stable) 31-oct-17 BBB - (Stable) 30-ene-18 BBB (Negative) 22-Jul-16 BBB (Stable) BBB(Estable) 10-Mar Oct-17 Foreign Investment (USD Billions) 4,7 12,4 16,8 15,1 4,4 11,4 CAGR 13-17: -4% CAGR 13-17: -12% 5,9 4,0 8,8 10, *Source: Colombian Financial Supervisor and Colombian Central Bank FDI Portfolio 37

38 Colombian Macroeconomic Ratios 4 th Investment 2011 Grade Since Largest economy in Latin America with 48 million people and 7 cities with population over 1 million GDP CAGR 09-16: 3% ONE DIGIT INFLATION since 1999 Inflation Rate for January 2018 is : 3,68%. 9 th Largest Fixed Income Market in the World ADTV in BVC as of January 2018: USD 1.4 billion Market Capitalization CAGR 08-16: 6% Equities Market CAGR 08-16: Derivatives Market CAGR 13-17: 3 rd Derivatives market in Latin America 1% 20% Unemployment Rate as of December 2017 is : 9,4% FX Market CAGR 13-17: 12% Sustained growth of the Colombian Pension Funds CAGR 13-17: 12% Portfolio Foreign Investment CAGR 10-16: 16% *Source: WFE, World Bank, BVC, Colombian Central Bank, DANE 38

39 Disclaimer: The views expressed in this presentation not necessarily reflect the institutional view of the Colombian Stock Exchange (BVC for its acronym in Spanish). The information contained herein is only accurate as of the date thereof, may be updated, supplemented, amended or otherwise altered by subsequent presentations, reports and/or any communication made by the BVC. Since the information is subject to change the BVC will not necessarily inform you of such changes. This presentation may contain forward-looking statements that involve a number of risks and uncertainties or other factors beyond BVC s control that could cause actual results materially differ from those projected and do not guarantee any future BVC performance. These factors include, but are not limited to i. economic, political and market conditions and fluctuations; ii. changes in domestic and foreign regulation; and iii. adoption of government policies related to the securities markets. The financial statements contained in this document are for the period herein described and are provided for informational purposes. The BVC is not liable for the use that third parties give to the information contained herein. The most recent financial statements approved by the Board of the BVC are those published for the [I] quarter of BVC cautions the investor that the information set forth in this communication cannot be considered as sufficient in order to make investment decisions. 39