Grupo de Inversiones Suramericana S A : 2022 Q4 Individual financial statements

SEPARATE

FINANCIAL STATEMENTS

4th Quarter 2022

GRUPO DE INVERSIONES SURAMERICANA S.A.

Cra. 43A #5A - 113

Medellín, Colombia

gest

A 1 | GRUPO SURA

TABLE OF CONTENT

NOTE 1. REPORTING ENTITY ............................................................................................................ 17

NOTE 2. BASIS OF PRESENTATION OF SEPARATE FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES ................................................................................................................... 17

2.1. Statement of compliance .................................................................................... 17

2.2. Basis of presentation ........................................................................................ 18

2.3. Significant accounting policies .......................................................................... 19

NOTE 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND CAUSES OF UNCERTAINTY IN

THE PREPARATION OF THE FINANCIAL STATEMENTS .................................................................. 28

NOTE 4. NORMS ISSUED NOT EFFECTIVE YET ................................................................................ 32

NOTE 5. FINANCIAL INSTRUMENTS ............................................................................................... 36

• 5.1. Financial Assets ................................................................................................. 36

• 5.2. Financial liabilities ............................................................................................ 37

NOTE 6. TAXES .............................................................................................................................. 44

6.1. Current income tax ............................................................................................ 45

6.2. Deferred tax ...................................................................................................... 46

6.3. Tax matters in Colombia .................................................................................... 46

6.4. Deferred Tax Assets Not Recognized ................................................................. 47

6.5. Uncertainty regarding income tax treatments .................................................... 47

NOTE 7. INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES ......................................................... 47

7.1. Investment in associates .................................................................................... 47

7.2. Investments in subsidiaries ............................................................................... 49

7.3. Impairment of investments in associates and subsidiaries ................................. 50

NOTE 8. EMPLOYEE BENEFITS ...................................................................................................... 54

8.1. Short-term benefits ........................................................................................... 54

8.2. Long-term benefits ........................................................................................... 55

8.3. Post-employment benefits ................................................................................ 56

NOTE 9. PREFERRED SHARES ....................................................................................................... 58

NOTE 10 EQUITY .............................................................................................................................. 58

10.1. Issued capital ................................................................................................... 58

10.2. Issuance premium ........................................................................................... 59

10.3. Reserves ......................................................................................................... 59

10.4. Reserves for share repurchase ......................................................................... 59

NOTE 11. DIVIDENDS PAID AND DECLARED ..................................................................................... 60

NOTE 12. OTHER COMPREHENSIVE INCOME ................................................................................... 60

NOTE 13. INCOME ............................................................................................................................ 62

NOTE 14. ADMINISTRATIVE EXPENSES .......................................................................................... 62

NOTE 15. FEES ................................................................................................................................ 63

NOTE 16. FINANCIAL RESULTS ....................................................................................................... 63

• 16.1. Foreign exchange difference (Net) .................................................................... 64

• 16.2. interests .......................................................................................................... 64

NOTE 17. EARNINGS PER SHARE ................................................................................................... 64

NOTE 18. FAIR VALUE ..................................................................................................................... 65

18.1. Fair value measurement on a recurring basis ..................................................... 66

18.2. Determination of fair value ............................................................................... 67

18.3. Fair value of financial assets and liabilities recognized at amortized cost or other

valuation method ..................................................................................................... 68

NOTE 19. RISK MANAGEMENT ......................................................................................................... 69

NOTE 20. CAPITAL MANAGEMENT ................................................................................................. 77

NOTE 21. OTHER MATTERS ............................................................................................................. 78

NOTE 22. RELATED PARTY DISCLOSURES ..................................................................................... 79

NOTE 23. EVENTS AFTER THE REPORTING DATE .......................................................................... 80

NOTE 24. APPROVAL OF THE FINANCIAL STATEMENTS ............................................................... 80

ANALYSIS OF FINANCIAL RESULTS (UNAUDITED) ........................................................................ 82

RESPONSIBILITIES OF THE DIRECTORS OVER THE ACCOUNTS

The Directors are required to prepare the financial statements, for each financial period, that reasonably present the financial position of the Company, results, and cash flows, at December 31, 2022, with comparative figures at December 31, 2021. For the preparation of these financial statements, the Directors are required to:

• - Select appropriate accounting policies and apply them consistently.

• - Present information, including accounting policies, that are relevant, reliable, comparable, and comprehensive.

• - Make judgments, and reasonable, prudent estimates.

• - State whether applicable accounting standards have been followed, subject to any significant deviation revealed, and explained, in the accounts.

• - Prepare the accounts, based on the ongoing business, unless it is inappropriate to presume that the Company will continue in business.

The Directors confirm that the accounts meet the above requirements.

In addition, the Directors consider that they are responsible for maintaining appropriate accounting records, which reveal, with reasonable accuracy, at any time, the financial situation of the Company. They are also responsible for safeguarding the assets of the company and, therefore, for taking reasonable steps to prevent and detect fraud, and other irregularities.

Gonzalo Alberto Pérez Rojas

Juan Guillermo Chica Ramírez

President

Public Accountant Professional Card 64093-T

CERTIFICATION OF THE SEPARATE FINANCIAL STATEMENTS

The undersigned Legal Representative and Public Accountant, under whose responsibility the separate financial statements were prepared, certify:

That for the issuance of the statement of financial position, at December 31, 2022, and of the separate income statement for the year, as well as, the statement of other comprehensive income, changes in equity statement, and the cash flow statement, for the year ended on that date, which are in compliance with the norms, and are made available to shareholders and third parties, and whose information, contained in them, have been previously verified and the figures taken faithfully from the books.

Said affirmations, explicit and implicit, are the following:

Existence: The assets and liabilities of Grupo de Inversiones Suramericana S.A., exist on the cut-off date and the transactions recorded, have been realized during the year.

Integrity: All economic events have been recognized.

Rights and obligations: The assets represent probable future economic benefits, and liabilities represent probable future economic sacrifices, obtained or under the charge of Grupo de Inversiones Suramericana S.A., on the cut-off date.

Valuation: All elements have been recognized, in the appropriate amounts.

Presentation and disclosure: Economic events have been correctly classified, described, and disclosed.

In accordance with article 46 of Law 964 of 2005, in my capacity as legal representative of Grupo de Inversiones Suramericana S.A., the financial statements and other reports relevant to the public, related to the financial year ending 31 December 2022 and 31 December 2021 do not contain defects, inaccuracies or errors that prevent the true financial position or operations of the Company from being known.

Gonzalo Alberto Pérez Rojas

Juan Guillermo Chica Ramírez

President

Public Accountant Professional Card 64093-T