Wiz Soluções e Corretagem de Seguros : Institutional Presentation

1973		2012		2014			2015		2016			2017				2018			2019

3

Products									Customers	% Revenue 1,2,3	% Stock5
Bancassurance
Life Mortgage Credit Life	Property &
		Casualty	93% 93% 92% 80% 72% 70%
Traditional

Auto

Substitutes

4

2014 2015 2016 2017 2018 2019

Pension Capitalization Consortium

Plans

										0%	0%	0%	2%	3%
															4
	Property &
Life	Auto	2015 2016 2017 2018 2019
Casualty

					Breach of	Credit Life
Consortium
					Warranty

				(...)
Warranty	Civil	Agro	Life	Engineering
	Liability

sales-After			Life	Pension	Capitalization	Other			Personnel
						Allocation
						Plans
											Document
						Mortgage	Credit Life				Management
	Consortium

0% 0% 0% 9% 9% 8%

2014 2015 2016 2017 2018 20194

7% 7% 8% 8% 8% 6%

4

2014 2015 2016 2017 2018 2019

0% 0% 0% 2% 2% 12%

4

2014 2015 2016 2017 2018 2019

1. Proforma Adjusted Gross Revenue; (2) Does not consider the Healthcare business unit, due to its operation being paused in 2017; (3) BPO Revenue considers only the Consortium product. The other products will start as revenue vertical in 1Q19; (4) 9M19 based numbers; (5) Percentile of gross revenues over the inventory from revenue stock (deals that were already closed and are being paid for) - 1H19 based numbers.

CAGR
25%	∆	CAGR	∆
	41%
	16%	28%

1 1

			∆
CAGR	∆	CAGR	24%
26%
16%
47%

1

1

¹ Net of pre operating expenses with the IPO.	7

Consolidated Proforma Gross Revenue

In BRL MM

			150.5	157.1	157.7	149.6	148.9	163.9	170.0	173.0	173.3	184.6	200.5
111.4	115.8	123.8

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Consolidated Adjusted EBITDA Margin

52.2% 47.2% 54.0% 46.9% 57.0% 62.5% 55.6% 45.9% 54.5% 56.1% 55.8% 54.9% 54.9% 54.7% 57.2%

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

Dividend Payment²

in BRL MM

	140.0		177.7
	113.3
81.4		81.8

2015

2016

2017

2018

2019 3

Note: (1) Consider revenues from new sales and "Other Products" revenues, that, due to its lower relevance, are not broken down within "stock revenues" and "new sales". (2) On 2H17 there were changes on Dividend payment policies of the Company, which now is set as an annual payment. Dividend paid in 2018 are due from the second half 2017 income. (3) Dividend approved in the board meeting for distribution throughout 2019, was paid in two installments:the first amounting R$53.3 million in May/19 and the second amounting R$124.4 million Nov/19.

SEGUROS

▪
▪
▪
▪
	TECH
▪	FRAMEWORKS

▪

$

ALLOCATION	RECRUITING	DEVELOPMENT	SALES MANAGEMENT
INTELLIGENGE	MODEL

Wiz'

In Loco

Network

Operates within

CAIXA's branches,

being solid and responsive to new strategies business model.

Non-assisted Branches

Assisted Branches

Allocation Model

Allocation by business

potential

Ideal exploit of people resource regarding technology use

The combination of people, processes and technology ensure the local actions are in line with our strategic challenges.

Action planning

Performance

Management

Quality relationship with CAIXA

BRL bln
	2nd			Premium from Mortgage Credit Insu. product
10.0				Bancassurance premiums ex-Mortgage Credit Insu.
0.3	5.6
	5.2	4.9	3.7
9.7	2.1	0.3	0.2	2.1
	1.9
			1.4
		4.9	0.4
	3.5	4.6
		3.3	2.1	1.9	1.4

•

´

SEGUROS

Activation quests complement the sales channels which leads to the client making the purchase via the remote and digital channels

─

─

─

─

─

─

─

SEGUROS

0.2% 0.6% 0.7% 1.2% 2.9% 1.8% 4.4%

²²

0.1% 0.2% 0.3% 0.5% 1.1% 0.8% 1.7%

151.9 174.0 171.1 171.1 160.7 176.0 164.3 178.6 186.4 151.5

2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19²

²²

Volume of Letters Sold		Share Partners Operation

Note: (1) Estimates based on the number of contracts sold according to ABAC and industry average ticket.

Considering only Light weight vehicles, Motorcycles and Real Estate. (2) 9M19 based numbers.

▪

▪

▪

¹ 9M19 Average.

SEGUROS

►	►	►	►	►	►
►	►			►
	►	►	►	►
►

• Product Design & Analysis
• Structuring & monitoring the sales channels
• Sales support intelligence

• Assistance to the product design
• Technical division and risk advisory
• Technical advisory towards the bank and major customers

• Sales force formed by specialized consultants
• Nationwide coverage
• Prior and post sales Backoffice support

RRAP

AMPA

AC	RO	TO
		MT
		DF
		GO
		MS
		SP
		PR
		SC
		RS

MA CE

PI PE

BA

MG

Proprietary Brokerage

Exclusive Brokerage Partner

SEGUROS

+

PARE

✓

✓

✓

✓

✓

+

+

SEGUROS

Consistent growth in funding and increase in credit portfolio backs up Inter's position as a strong player in the banking sector.

Banco Inter is Brazil's leading digital bank

Wiz appointed the Marketing Director to run the operation outside Wiz' network

Deposits

In MBRL

3,1 x

					'	1,112	1,458
466	618	843
	3Q18 4Q18 1Q19 2Q19 3Q19
Total digital accounts
			+13 thousand
In thousands
3,1x
								New accounts per
											working day
						3,264
							(3Q19)
		2,541
	1,0501,4521,935				+273 thousand

New accounts per

month (3Q19)

3Q18 4Q18 1Q19 2Q19 3Q19

										Credit card
					Transactional volume
					In MBRL
												1,902
										1,075
						215
						2017	2018	9M19
											Other Credit
											operations
			Mortgage Loan					Payroll Loan
			In MBRL							In MBRL		944
						2,390		780	811
				1,946
			1,529
			2017	2018	3Q19	2017	2018	3Q19

Inter Seguros' operation

Relationship with Insurance Companies

37

Inter Seguros' product portfolio and operating and financial highlights

38

Refined insurance offering at the moment of the bank transaction

Profitability of the customer base through tested and endorsed business model strategy

Corporate Governance

CEO

Headhunting with unanimous approval of Wiz and Banco Inter

(pending board approval)

MarketingComercial/

ControllerDirectorInstitucional

Director

First Steps

▪	Operational Strategy Development
▪	Roadmaps and business plan development

Business Strategy

Commercial business model

Business model focused on two fronts

Bancassurance model structuring

Margin increase strategy

Understanding the transaction as the foundation for insurance selling

Understanding the average customer profile

Definining the			Insurance
ideal product	Customer inclination study	Transaction	1ª offer	2ª offer
to each
transaction		Transaction A	Product A1	Product A2
	Studying correlations	Transaction B	Product B1	Product B2
	between bank transactions

and products

Explore opportunities to monetize the portfolio

▪	Strategy development for penetration in customer
	base
▪	Client approach strategy
▪	Inclusion of new products in the portfolio such as
	Credit Life and Consortium

Portfolio analysis

Analysis and cross-selling using a customer driven approach

Digital journey for data enriching to generate opportunities

Outcome management and follow-up

Margin	Sales
increase	Strategy
strategies
Renewal optimization	Client oriented approach
Client Recovery	Call-to-action through ideal
Portfolio Cross selling	offers to customers
Upsell on the already	Outcome management and
insured customers	follow-up

39

Deal suggests the acquisition of 40% of Inter Seguros, with down payment of R$ 45 MM and four installments earnout

		Rationale of 40% stake in Inter Seguros
		In R$ MM
							Acquisition Schedule
												Earnout based on EBITDA	25,9			25,9			25,9
														25,9												17.25
			34.																		17.25
40%	285	5		45									17.25										12,1
						17.25								12,1
		114														12,1
										12,1
		Valuation Stake =							Fixed	Waiver	2020/2021	2021/2022		2022/2023		2023/2024
		40%							Installment	2019/2020	EBITDA GOAL: EBITDA GOAL: EBITDA GOAL: EBITDA GOAL:
		2019
								R$ 23.2 MM		R$ 31.5 MM	R$ 42.4 MM	R$ 55.4 MM

Earnout w/trigger @70% - @150%

Rules of dividend distribution by Inter Seguros

• Minimum mandatory distribution of 50% of earnings;
• The remaining amount should be retained in cash to cover 3 months of operating expenses and CAPEX, the rest should be distributed, except when unanimously decided by the partners;
• The Share of Wiz' dividends should be retained to ensure the payment of variable installments, until the acquisition is complete

Deals's details:

• The total amount for the acquisiton of 40% stake is R$114 MM;
• The Transaction should be paid through a down payment in the amount of R$45 MM - to be disbursed at the deal's closing - and variable installments, under the following rules:

1. The amount of R$69 MM should be paid in 4 installments of R$17,25 MM each, which will be adjusted upwards or downwards, triggered by the company's EBITDA, as the graphic shown in this slide;
2. The amount of the installmants may vary between R$0 to R$25.9 MM, based on yearly set goals. In case the goal is met below 70%, the amount of the following installment should be zero. In case the EBITDA is a percentage between 70% and 150% of the EBITDA goal, the amount should be the product of the variable installment times the percentage earned.
3. The installments will be adjusted by SELIC rate, limited to 15%

40

Key Financial Indicators, consolidated

Indicator (R$ MM)	3Q19	3Q18	∆%	9M19	9M18 ∆%
Gross Revenue	200.5	170.0	18.0%	558.4	482.8	15.7%
Net Revenue	179.5 151.6 18.4% 498.8 430.8 15.8%
Cost and Expenses	(75.9)	(64.6)	17.4%	(218.8)	(189.8)	15.3%
Other Rev./Exp.	(0.9)	2.1	n.a.	11.3	(9.8)	n.a.
EBITDA	102.6	89.1	15.3%	291.2	231.2	25.9%
EBITDA Margin	57.2%	58.7%	-1.6 p.p	58.4%	53.7%	4.7 p.p
Net Income	62.3	54.2	14.8%	172.9	134.8	28.3%
Net Margin	34.7%	35.8%	-1.1 p.p	34.7%	31.3%	3.4 p.p
Net income
attributable to	60.1	51.2	17.4%	165.6	129.2	28.2%
Shareholders

Gross Revenue, consolidated | R$ million

∆ YoY

+18.0%

170.0	173.0	173.3	184.6	200.5
3Q18	4Q18	1Q19	2Q19	3Q19

+15,7%
	558.4
482.8
9M18	9M19

EBITDA and EBITDA Margin, consolidated R$ million; %

Cash and Dividends R$ million

63.7%

58.7% 54.9% 54.7% 57.2%

89.1	84.6	98.4	90.2	102.2
3Q18	4Q18	1Q19	2Q19	3Q19

53.7%	58.4%
231.2	291.2
9M18	9M19

	42.3	1		56.0		83.8	56.0
140.0	0.7	0.0	0.0
120.0								-
100.0								(100.0)
80.0
								(200.0)
60.0			115.2		106.2		106.2
					(300.0)
40.0
20.0		53.0		53.9				(400.0)
0.0	12.8					12.8		(500.0)
	3Q18	4Q18	1Q19	2Q19	3Q19	9M18	9M19

EBITDA

EBITDA Margin

Cash

Dividends

Source:Company	42
¹Note: Figures from 4Q18 due to non-controlling shareholders.
²Note: Dividends paid in nov-19

Business Unit Performance

Business Units (BRL million)		3T19	3T18	∆%		9M19	9M18	∆%
Bancassurance Operation	140.1	134.6	4.1%	393.1	379.0	3.7%
Wiz BPO	25.2	3.0	732.6%	66.6	8.2	714.3%
Wiz Parceiros	17.0	14.5	17.5%	46.5	43.3	7.2%
Wiz Corporate	13.6	12.6	7.7%	35.4	36.8	-3.8%
Wiz B2U	4.3	4.8	-10.9%	14.0	14.9	-5.8%
Wiz Saúde	0.3	0.4	-40.9%	2.9	0.5	431.5%
Gross Revenue		200.5	170.0	18.0%		558.4	482.8	15.7%

(2) (2)

Source: Company
Note: : (1) The detailing of the Company's revenue stock isn't a finacially audited information and was calculated based on Wiz's internal reports, considering the	43
comissioning expenditure . The method used to get to this number is explained in our press release. (2) The auto segment was allocated entirely to B2U retroactively.

Cost Breakdown per U.N.

Costs (R$ MM)			3T19	3T18		∆%	9M19	9M18		∆%
Bancassurance			(24.1)	(23.9)		0.7%	(70.0)	(68.3)		2.5%
Wiz BPO			(15.3)	(4.3)	257.3%	(42.1)	(11.6)	263.5%
Wiz Parceiros			(3.0)	(2.9)		2.7%	(8.3)	(7.9)		4.8%
Wiz Corporate			(4.9)	(5.3)	-8.1%	(14.4)	(14.1)		2.4%
Wiz B2U			(2.5)	(3.2)	-22.0%	(7.6)	(9.7)	-21.2%
Wiz Saúde			(0.4)	(0.2)	157.5%	(1.3)	(0.6)		98.7%
Costs			(50.2)	(39.8)	26.0%	(143.7)	(112.2)	28.1%
Costs Breakdown 3Q19		Headcount Breakdown
Bancassurance	Wiz Parceiros	Wiz B2U	3Q18	3Q19
Wiz BPO	Wiz Corporate	Wiz Saúde
4.9%	1.1%		1,1
	29		1,084
9.8%						738
						181		39	44
6.0%			48.0%	Bancassurance	BPO*		Parceiros
R$ 50,2MM
30.5%				121		108	98	94	5	17
				Corporate	B2U			Saúde

*Note: BPO operation started officially in nov/18, approximate figures

44

Expenses Breakdown
G&A (R$ MM)		3Q19	3Q18	∆%	9M19	9M18	∆%
Personnel		(15.5)	(16.3)	-5.2%	(45.4)	(49.1)	-7.6%
Third Party		(2.3)	(0.9)	157.4%	(5.6)	(4.0)	38.6%
Tecnology and Telecom	(2.7)	(3.5)	-24.4%	(9.8)	(12.3)	-20.3%
Occupation		(0.9)	(1.4)	-37.9%	(2.5)	(4.3)	-41.7%
Other		(4.4)	(2.7)	65.5%	(11.8)	(7.8)	50.7%
General and Administrative	(25.7)	(24.8)	+3.7%	(75.1)	(77.6)	-3.2%
Other rev./expenses	(0.9)	2.1	n.a.	11.3	(9.8)	n.a.
G&A Expenses Breakdown 3Q19			Headcount Breakdown
Personnel	Tec. Telecom	Other		3Q18	3Q19
Third Party	Occupation
17.1%
3.4%
					255	258
10.4%	R$25.7 MM
9.0%		60.2%			Administrative
Source: Company							45

WIZ CLOSES THE DEALS FOR NEW OPERACIONAL TERMS, TAKING PART IN RESTRUTURING CAIXA'S INSURANCE ENVIRONMENT

COMISSION RATIOS

BROKERAGE/CO-BROKERAGE Wiz

1. Conditions

▪ Commission rates are fixed

2. Commission

Lines

Commission Rates(*) (¹)

Tax Basis

% Revenue²

until February 2021, except

when indicated

▪ (*) Commission rates on main

product lines in accordance

with current Operational

Agreement. These rates may

vary over time due to change

in product mix of each line.

▪ Reduction of Mortgage

commission rate as of January

2019 due to breach of

commission payment related

to the project for Mortgage

into the Bank Correspondents

Life

Credit Insurance

Mortgage - Recurring Comission

Mortgage - Upfront Comission

Residential

Corporate MR

Auto³

12%

9.64%

2018: 6%

2019-21:4%

2018: 200%

2019-21:0%

15%

10.5%

4.2%-7%

% of installment received	32%
% of total billed premium	25%
% of installment received	20%
% of first installment	7%
received
% of installment received	6%
% of installment received	3%
% of installment received	4%

Nota: : (1) The average commission rates are: Life- 10.8%; Mortgage - 5.6%; Credit Insurance - 9.1%; Residential - 10.7%; Corporate MR - 10.3%; Auto - 4.1%. Commission ratio estimated based on the commission of past 12 months over the premium SUSEP in the period

1. Percentage of each line over the gross revenue of Parent Company (Wiz without its affiliates and subsidiaries). Average of last twelve months.
2. Variation over the time depends on the mix of products sold, pursuant the interaction between the client and CAIXA.

COMISSION RATIOS

PARTNERS OPERATION (FINANSEG)

1. Conditions

▪ (1) Commission policy start with

contract signing, applied only on

insurances policies sold from that

date on. Installments due to

insurance contracts signed before

this date, pay 30% a commission

rate to Wiz.

▪ (2) Commissioning derived from

Consortium Indication will go from

1% to 1.45% by the signing date to

2. Commission
Product		Commission	Tax basis
Breach of Warranty	25%	% on installments
Insurance (SQG)
Credit		35%	% on installments
Insurance	(1)
Backoffice		35%	Fee defined by
	activity provided

the end of 2018, reducing to 1.25%

as of jan/2019.

▪ (3) Success fee percentage is

subject to:

▪ % achievement of agreed

sales targets between the

parts

▪ % of minimum duration until

the 13th month of the portfolio

Consortium (Indication)(2)

Success Fee - Platform (3)

Contracts with same maturity

date until 2018:

1.45%

Contracts with same

maturity date as of 2019:

1.25%

Contracts with same

maturity date as of 2019:

0% - 1.5%

Consortium letter value, paid in 4 times

Consortium letter value, paid in 4 times

sold

1. The previous sucess fee (Platform), corresponding to 0,65%, shall be suspended for the consortium contracts with same maturity date sold between the date of execution of the agreement until december 31st 2018

COMISSION RATIOS

BACKOFFICE

1. Conditions

▪ The commission payment will be owed from the

starting transaction date by segment, after the

contract signing.

▪ After 12 months of service rendering, the respective

values will be inflation-adjusted by the IPCA-IBGE

consumer price index.

▪ After 24 months of rendering of services, there will

be an annual decrease of 4% on the per-unit values

paid as commission

2. Commission
Product	Commission	Reference Values
Life	qty contracts X R$0.458/month	Qty of contracts effective
in Dec 18: 3.57 MM
Pension Plans	qty contracts X R$0.458/month	Qty of contracts effective
		in Dec 18: 1.57 MM

Until feb/21:

▪	(1) The commission rates after Feb. 2021 will change
	only for the contracts sold from that date on
▪	(2) Following the JV2's definition, the maintenance of

Credit Insurance(1)

qty contracts X R$0.125/month

contracts with same

maturity date as of mar/21: qty contracts X R$0.458/month

Qty of contracts effective in Dec 18: 4.07 MM

the services' provisions for the new mortgage

contracts with the same maturity dates, is

conditioned to CNP winning the bidding procedure

▪ (3) In the event CNP does not win JV2's bidding

procedure, the contracts with same maturity date'

commission after feb/21 will go from R$0.458 to

R$0.509, to all active reminiscent Mortgage contracts

in the portfolio

	Until feb/21:
Mortgage(1,2,3)	qty contracts X R$0.125/month
contracts with same
	maturity date as of mar/21:
	qty contracts X R$0.458/month

Qty of contracts effective in Dec 18: 3.50 MM

Governance and Compliance evolution

Caixa Seguridade new multiple-JV shareholder structure (1)

Sizable Risks

Premium

Consortium

Auto

Life

Mortgage

Healthcare

Dental

Assistance

and Mass

Services

Corporate

Bonds

Pension Plans

and home

Insurance types:

Partner will hold

Partner will hold

Credit Life

Up to 6 different

Partner will hold

Property &

Up to 3 total

Partner will hold

partners in 6

One exclusive

Casualty,

25% of the

25% of the

CNP will hold

25% of the

25% of the

partners

different areas

partner

Transportation,

economic rights

economic rights

aprox. 40% and

economic rights

economic rights

Agro, etc

Caixa Seguridade

Partner:

Partner:

Partner:

Partnership via

60% of the

Partner:

Partnership via

Partnership via

Partner:

economic rights

75% ON

50%+1 ON

50% ON +1

commercial

50% ON +1

commercial

commercial

50% ON +1

75% PN

0% PN

0% PN

agreement

0% PN

agreement

agreement

0% PN

CNP Assurance:

50% ON +1

30% PN

(1) Slide based on Material Facts released by Caixa Seguridade on the 10th and 24th of May.