Corporate Presentation September, 2016
One of the largest financial services providers Investment manager Mutual Funds*** Retirement Voluntary Fund* Private Equity Funds* Trust* and Third Party Portfolios** Services Trust* Capital market brokerage** Exchange market brokerage** * Managed by Alianza Fiduciaria (AF) ** Managed by Alianza Valores (AV) *** Managed by AF and AV
Leaders in the financial market managing 12.7 billion in assets 1 AF in Real Estate Trust (USD 4,25 BN) AF as independent manager of Mutual Funds (USD 1,13 BN) AF as Private Equity Funds manager (USD 1,10 BN) 2 Largest broker of Exchange rate derivatives (USD 7,3 BN año acumulado) 3 Largest administrative trustee player (USD 15,2 BN) AV in Standardized Derivatives trading *Including Private Equity Funds *Assets managed by Alianza Valores, Alianza Fiduciaria and Fiducor **Colombian equity index
Assets managed by Alianza (AF and AV) cover a broad spectrum of products Assets Under Management (Alianza Fiduciaria + Alianza Valores) July 2016 figures in USD Billions Source Alianza AF AF AF AV AV AF AV AV AF: Alianza Fiduciaria AV: Alianza Valores
Our shareholders add strong value and support USD 34 BN* in assets under management +310 companies have capital investments USD 2.1 BN In commitments dedicated to Latin America +USD 1.5 BN Invested in Colombia +50 years managing companies in different subsectors of the financial services industry: Insurance, credit bureaus, trusts administration, and brokerage services Economic group Investments in different industries as financial services, agribusiness, automotive, and real estate.
Advent International is one of the private equity investors with more experience in Latin America Examples of investments led by the office México D.F. Office opened in 1996 12 investment professionals 20 investments Examples of investments led by the office México, D.F. Bogotá Bogotá Office opened in 2011 12 investments professionals 7 investments 4 43 52 33 offices installed for at least 19 years (1) investment professionals investments (2) exits São Paulo São Paulo Office opened in 1997 18 investments profesionals 18 investments Examples of investments led by the office In 2014 Advent International raised LAPEF VI, the largest private equity fund dedicated to Latin America with USD 2.1 billion in commitments (1) México D.F., Bogotá, São Paulo and the former office in Buenos Aires (2) Including 7 investments from the former office in Buenos Aires 6
A board that reflects the best practices Ernesto de Lima Le Franc Chairman of board of directors Bachelor Degree: Universidad del Valle BSc Business Administration. Advanced management courses at Stanford University Mauricio Salgar Industrial ingeneer from Universidad de los Andes and Master in Business Administration at MIT. Managing Director in Advent International. VP Sanford. COO and CEO Ecopetrol and Booz&Co Associate AF: Main member, AV: Main member AF: Main member, AV: Main member Pedro José Piedrahíta Plata Bachelor of Science de MIT. He served as CFO in Delima Marsh. CFO Delima Marsh. (40 years of experience in Colombian financial sector) Lucas Marulanda Industrial ingeneer from Universidad de los Andes and Msc Industrial Engineering. MBA at Emory University. Director Advent International, Inverlink investment Bank VP. AF: Main member, AV: Main member AF: Pending, AV: Main member José Alejandro Piedrahíta Chemical engineer from Worcester Polythecnic Institute and MBA at Kellogg School of Management. Has served in McKinsey & Co, Bank of America and Darwin Capital.. AF: Main member, AV: Main member Fuad Velasco Juri (Independent) Economist of US Air Force Academy, MBA at Maryland University and completed the CEO Management Program of Kellogg School of Management. Nexus Capital Partners shareholder. VP Fiducolombia. President of Fiduciaria Bancolombia. VP Bancolombia AF: Main member, AV: Main member AF: Alianza Fiduciaria AV: Alianza Valores
A board that reflects the best practices Jorge Alberto Uribe Echavarría Economist from George Washington University. Specialization in International marketing at Besançon University. Former Defense Minister of Colombia in 2004. Former president of Delima Marsh. AF: Main member Ernesto de Lima Bohmer Business manager from Trinity University (San Antonio, TX). Different positions in Datecsa, Delima & Cia., Progreso Corporación AF: Substitute, AV: Substitute Emilio Echavarría (Independent) Business manager from Universidad EAFIT. Postgraduate degree in Management at the London Polytechnic. Msc Economic Development at the London University. Advance Direction Program at Wharton (Philadelpia). President of Valores Industriales, Valores Bancolombia for 20 years. AF: Substitute, AV: Substitute Gabriel Uribe Téllez (Independent) Economist from Universidad Javeriana. Specialization in Banking at Universidad de los Andes. President of Riegel Ltda. Asesores de seguros. Has served as VP in Banco Santander, VP in Bancolombia and VP in Megabanco AF: Substitute, AV: Substitute AF: Alianza Fiduciaria AV: Alianza Valores 8
Trust Companies ranked by AUMs in Trust* July 2016 Figures in USD Billions 21.32 4th Largest Trust Company by AUMs 9.84 13.26 11.45 4.14 3.72 Source: Superintendencia Financiera de Colombia *July Exchange rate USDCOP: 3,081,75 includes Management, Investment, Guarantee and Real Estate trusts
Trust Companies ranked by AUMs in Real Estate Trusts* July 2016 Figures in USD Billions 4.36 1st Largest Trust Company by AUMs 1.63 2.28 4.17 1.21 0.5 Source: Superintendencia Financiera de Colombia *July Exchange rate USDCOP: 3,081,75 includes trust companies (doesn t include brokerage companies)
Financial groups ranked by AUMs in mutual funds* July 2016 Figures in USD Billions Bancolombia 4.8 4th largest financial group ranked by mutual funds AUMs Grupo Aval Davivienda Alianza 1.3 1.2 4.2 Citi 0.7 Source: Superintendencia Financiera de Colombia *July Exchange rate USDCOP: 3,081,75 Does not include Private Equity Funds 11
Integrated products and services platform of Alianza allows clients to offer complete solutions under format of «one-stop-shop» Assets Trust Warranty Trust Management and payments trust Invoice discounting Trust Bond holders representative Alianza with INVERLINK on investment banking issues Other assets Liquidity Funds Referenced collection Scattering payments Simultaneous Liquidity and surplus Local currency investments Mutual Funds Trust Third Party Portfolios Fixed income (bonds, Time Deposits) Equity Portfolios TTV s Interest rate derivatives and equity derivatives Real estate asssets Real Estate Trust Retirement Pension Retirement Pension Fund Visión - Stable Portfolio - Closed alternatives Foreign currency investments Operators of exchange market (buying and selling currencies) Standardized derivatives on dollar Bonds and shares through contract with EFG correspondent
Why work with Alianza?
We have a management team with extensive experience and professionalism Luis Fernando Guzmán Chief Executive Officer (AF)* 19 years of experience Universidad Externado. Juris Doctor Universidad del Rosario. Taxation Fiduciaria Bogotá, HSBC Fiduciaria y Editorial Temis Gustavo Adolfo Martínez García Trust Services VP (AF)* 25 years of experience Universidad Externado. Juris Doctor Experience in Business y and Trust products. Superintendencia Financiera de Colombia, Empresa Constructora Oikos, Findeter Mauricio Guzmán Treasury and Institucional Sales VP (AV)** 21 years of experience Universidad de los Andes. Bsc. Economist Universidad Javeriana. Finances Specialization Almagario, Bancolombia, Profesionales de Bolsa Luis Fernando Fandiño Distribution & Sales VP (AV and AF)* 25 years of experience Universidad del Rosario. Bsc. Economist Universidad Javeriana. Marketing Management Banco de Bogotá, Banco Caja Social y Corporación Financiera Santander y filiales Angela Sanchez Business Advisor 20 years of experience Universidad de la Salle Davivienda, Alianza Valores Felipe Chavez Business Advisor 5 years of experience Universidad de Medellin Alianza Valores * Legal Representative of Alianza Fiduciaria ** Legal Representative of Alianza Valores 14
We have a management team with extensive experience and professionalism Carlos Londoño Chief Investments Officer (AF y AV)* 20 years of experience Universidad de los Andes. Systems Engineer Universidad de los Andes. MBA Corredores Davivienda, Valores Bavaria Internet. Estrategias Corporativas Vacancy Chief Operating Officer (AV y AF) Until last June, Federico Wartenberg served in this position Ricardo Pérez Chief Strategy and Marketing Officer (AV and AF)** 15 years of experience Universidad de los Andes. BSc Economics Universidad Sabana. Finances Specialization Universidad de los Andes. Master in Economics Bancolombia, Alianza Valores Arturo Boada Chief Financial Officer (AV and AF)* 37 years of experience Universidad de los Andes. BSc Economics Universidad de los Andes. Master in Economics Fiduciaria Bogotá, RSA, Fiducolombia, Seguros Fénix, Bermúdez y Valenzuela, Superintendencia Bancaria Iván Ordoñez VP de Riesgos (AF y AV) 20 years of experience Universidad de los Andes. Mechanical Engineer CESA Corporate Finance specialization Credicorp Capital, Banco de Bogotá, Fiducor, Fidultra y Ultrabursátiles Mario Augusto Gómez Cuartas VP. Jurídico (AF y AV)* 15 years of experience Universidad Javeriana. Juris Doctor Universidad Sabana. Administrative Law Experience in government contracting, litigator and advisor. Procuraduría General de la Nación, Acueducto de Bogotá y Fondo de Vigilancia y Seguridad * Legal Representative of Alianza Fiduciaria ** Legal Representative of Alianza Valores AF: Alianza Fiduciaria AV: Alianza Valores 15
Current Ratings Alianza Fiduciaria and Alianza Valores Alianza Fiduciaria Counterparty risk AAA (col) Validity: June 10th, 2017 Alianza Fiduciaria Investment Asset Manager Highest Standards Validity: June 8th, 2017 Perspectiva negativa Alianza Valores High Standards Forthcoming publication
How it works... Open your account Wire Transfer from your local Bank Register your investment (Legal Assistance is required) BANREP requests urgent matter Final Investment
The best exchange rate is the one that lets you close your deal on time * Max. days in Citibank account: 10 days. * Government formularies in the same day. (We strongly advise you to work with a Lawyer). Standard fee with real time rates allowing you to access to an excellent exchange
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Update Financial Statements 1Q 2016
In the first quarter of 2016 Alianza Valores had an excellent financial performance (YoY) Revenue Figures in millions of USD EBITDA Figures in millions of USD Net income Figures in millions of USD 5,6 8,0 1,25 0,866 0,33 0,115 1S 2015 1S 2016 1S 2015 1S 2016 1S 2015 1S 2016 42% 4x 8x increase vs. 2015 first semester growth vs 2015 first semester growth vs 2015 first semester July Exchange rate USDCOP: COP 3,081.75
In the first quarter of 2016 Alianza Fiduciaria continued with the strong financial performance shown in 2015 Revenue Figures in millions of USD EBITDA Figures in millions of USD Net Income Figures in millions of USD 9,5 12,6 8,5 10,7 4,5 5,3 1S 2015 1S 2016 1S 2015 1S 2016 1S 2015 1S 2016 32% 1x 17% increase vs. 2015 first semester increase vs. 2015 first semester increase vs. 2015 first semester July Exchange rate USDCOP: COP 3,081.75
PEI (the biggest REIT of Colombia)
Investors Presentation
Patrimonio Estrategias Inmobiliarias - PEI Portfolio s Description First real estate institutional vehicle in Colombia structured under the model of REITs, focused on corporate property investments. Consolidated since its inception as a leader in the real estate segment, with more than 495,000 m 2 of GLA and presence in 12 cities in Colombia. Long term horizon, 99 years and renewable up to 99 additional years. 39 real estate properties, worth US $697 MM. 508 lease agreements, with an average lease term of 6.8 years. 96% Occupancy and 98% lease renewal. PEI s Securities (TEIS) are rated i-aaa and Terranum Inversión g-aaa for the Effectiveness Portfolio Management. 38
Terranum Inversión Expert Real Estate Manager ESTRATEGIAS CORPORATIVAS SANTO DOMINGO GROUP INVESTMENT Structured and manages the leader Real Estate Trust in Colombia PEI. Provides stable investment alternatives in the real estate sector.
Asset Portfolio Corporate Assets Manizales 7,820 Medellín 14,916 Bogotá 11,696 Bogotá m 2 m 2 m 2 15,926m 2 Bogotá 4,686 Bogotá 4,393 Bogotá 6,117 Bogotá 12,737 m 2 m 2 m 2 m 2 Bogotá 3,634 Bogotá 20,585 Bogotá 7,123 Bogotá 9,060 m 2 m 2 m 2 m 2 Medellín 15,797 Medellín 890m m 2 2 Tenjo 12,426 Bogotá 2,487 m 2 m 2 16 Assets in 150,293 m 2 Corresponding 30% of total area. 48 Leases generating US $26.9MM Representing 49% of revenues 1 40 1 Budget 2016 TRM = CO $3022.35
Asset Portfolio Corporate Assets Manizales 7,820 Medellín 14,916 Bogotá 11,696 Bogotá m 2 m 2 m 2 15,926m 2 Bogotá 4,686 Bogotá 4,393 Bogotá 6,117 Bogotá 12,737 m 2 m 2 m 2 m 2 Bogotá 3,634 Bogotá 20,585 Bogotá 7,123 Bogotá 9,060 m 2 m 2 m 2 m 2 Medellín 15,797 Medellín 890m m 2 2 Tenjo 12,426 Bogotá 2,487 m 2 m 2 16 Assets in 150,293 m 2 Corresponding 30% of total area. 48 Leases generating US $26.9MM Representing 49% of revenues 1 41 1 Budget 2016 TRM = CO $3022.35
Investors Participation: by Type of Investor By Type of Investor Detail of Investors Equity Value = US $512.39 MM 1 Equity Value = US $512.39 MM 1 Voluntary 19.5% Pension Funds 0.3% 7.1% 6.9% 1.8% 7.5% 2.8% Severance Mandatory 6.3% Other Institutional 6.3% Voluntary (Alternative) 16.1% Family Offices 58.1% Individual Investors 19.5% 29.1% Individual Family Office Insurance 18.7% Investment Trust Emplyee Fund 42 1 TRM = CO $3022.35
CO $MM CO $MM In 2015 the amount traded in secondary market grew to CO $377,127 MM, corresponding to US $124.8 MM 2 Transactions CO $MM 1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total mar.-16 CO $MM 22,681 54,893 96,008 87,487 75,290 127,149 165,668 277,716 355,127 111,585 1,373,604 53,001 60,000 40,000 20,000 0 Num. 20 50 317 545 537 764 1,221 1,832 2,562 556 8,404 180 CO $MM Number 500 450 400 350 300 250 200 150 100 50 0 Number Market Price CO $MM 1 % sobre valor de referencia 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total mar.-16 Mínimo 87.7% 91.5% 93.4% 99.7% 97.9% 98.0% 99.7% 99.9% 99.9% 99.9% 87.7% 99.9% Promedio 96.7% 99.8% 101.3% 107.6% 109.0% 110.0% 109.5% 109.5% 107.7% 104.7% 108.1% 104.0% 10.0MM Máximo 101.0% 102.8% 107.2% 112.7% 115.0% 114.9% 114.4% 114.0% 113.0% 113.2% 115.0% 108.9% 9.0MM Precio Referencia 8.0MM 7.0MM Precio Prom 6.0MM 5.0MM 4.0MM Throughout 2016 the title has traded on average 93% of working days 1. Transactions include only purchase securities, they does not include sale of securities or simultaneus operations 2. TRM (March 31 st 2015) = CO $3022.35 43
PEI s securities are a moderate risk and a stable return investment alternative PEI Profitability vs COLCAP, Local Fixed Rent, USD, DTF, S&P 500 (%) (March 1 st, 2007 March 31 st, 2016) Index E.A. Apr-15 Mar-16 Apr-14 Mar-15 Aggregate PEI CO $ 14.2% 14.3% 11.2% 234.3% COLCAP N/A 0.5% -23.1% N/A DTF 90 5.5% 5.1% 4.2% 63.2% S&P 4.6% 0.0% 9.7% 49.9% USD 3.4% 16.3% 30.9% 35.4% Volatility (Standard deviation of the cumulative percentage change) PEI COLCAP DTF 90 S&P USD Aggregate march 2007 Last 12 months 4.9% 17.7% N.A. 21.7% 12.6% 3.9% 17.5% N.A. 16.7% 16.7% IPC 2007, 5.69% - 2008, 7.67% - 2009, 2.00% - 2010, 3.17% - 2011, 3.27% - 2012, 3.73% - 2013, 2.44% - 2014, 1.94%- 2015, 3.66%- 2016, 6.77% La rentabilidad E.A. y acumulada del COLCAP no aplica, debido a que este indicador inició operaciones el 01 de abril de 2008, por lo cual no son comparables en el tiempo 44
Communication with Investors Goal: Provide necessary information to help investors take decisions about their investments. Outreach Activities Investor s annual meeting Biannual Teleconferenc e Customized service Road Show Communication Channels Teleconferences. Monthly and quaterly report. Website www.pei.com.co Annual Survey. Virtual informative emails. inversionistas@pei.com.co to receive questions and comments. Updating and confirmation of the database. 45 UPDATES Website www.pei.com.co, due to virtual information needs. Website www.terranum.com (Terranum Inversión Section)
Thank you!