FINSOCIAL

In June 2012, a dream was born, which became a reality not just as a productive business model, but also as a contribution to society, seeking to improve the quality of life of public teachers and pensioners in Colombia. At that time, 15 professionals decided to make a difference and started the FINSOCIAL operating engine to offer technology-backed low-risk financial solutions under the modality of payroll deduction loans and consumer loans, seeking to protect the integrity of our customers, help them achieve their goals, support them in their and their family’s difficulties.

The first task was to tear down the informal credit practices that bring unease and reduce the quality of life of those who often resort to microcredits for not having access to traditional banking. True to our values, our cornerstone is the social purpose of including financially and positively impacting the life of our customers by providing fast, agile loans without codebtor.

To build the brand, the four founding partners spent days structuring the business model and it was just at that moment that they realized that our target audience was being neglected by traditional banks. The reason? Many were reported in credit bureaus, others due to their repayment capacity, level of indebtedness or simply for being unbanked, and 50% of our customers are in that range.

At FINSOCIAL, we guarantee their security and give them a second chance to improve their credit score. Public teachers and pensioners: two low-risk niches in a huge market; their source of

payment is the nation and income stability is virtually lifelong, which is very important for the margins in our portfolio, standing below 1%.

Back in 2015 we took the first steps towards the FinTech sector with the use dematerialized promissory notes through Deceval, always ready to continue supporting our initial market, giving access loans with greater coverage and speed. In 2018 we decided to develop the Finsonet software inhouse, a platform that would give us the final pass to be part of the fourth industrial revolution in Colombia.

Thanks to the important strategic partnership with RED 5G, and given our position in the financial sector, the Inter-American Development Bank (IDB) recognized us as FinTech of Latin America and the Caribbean in 2018, after the investment of the important international fund KANDEO. This is the result of the work and knowledge of a team that made a common dream possible: to help and generate positive impact in the communities through financial and social inclusion.

In addition to our high standards, certifications, dedication, passion, technological effort and social inclusion, we began to be part of the Colombia Fintech Association and main members of the board of directors.

After a year of preparation in 2019 and participating in the local and international selection panel, FINSOCIAL became the first company in the Caribbean Region to be part of the Endeavor high-impact entrepreneurship network, which promotes economic development, mentoring and enterprise transformation. FINSOCIAL’S achievements in digital transformation:

Projects, FPDA (Finsocial Personal Digital Assistant): Tool that allows advisors and customers to manage loans by obtaining data directly from their ID. A scanner retrieves the information and requests the necessary authorizations, and from there the customer is profiled through a Web Service connection with Credit Bureaus and other sources of information.

Complaints & Grievances PQR PQR or customer service module: Development of innovation, technology and human resources, enabling streamlined and timely customer traceability, in addition to allowing us to establish rapport and efficient information management.

Omnichannel Strategy - Finsobot

Inbound marketing strategy “the flywheel” - Loyalty

Exponential Growth Our positioning in Barranquilla opened the doors for us to reach more teachers and pensioners now throughout the country, and a year after starting our operation (in 2013) we began our growth plan. We currently have offices in the main and intermediate cities and some municipalities where we identify the need for access to credit. So far, we have improved the quality of life of more than 30,000 customers nationwide.

For 2020, we intend to increase credit placement by 60% and reach every corner of the country, with the premise of not expecting customers to come to us, but to reach out to them through technology, understanding each and every one of their needs.

The company’s CEO, Santiago Botero, assures that FINSOCIAL’S business path is based on conscious capitalism driven by the determination of entrepreneurs and dreamers, who identified the journey and built deep roots of hard work, management, imagination and innovation.

Juntos, hoy es posibleEstamos entre las 25 mejores empresas para trabajar en Colombia. Y Finsocial firmaron la operación más grande registrada en Colombia para un originador de crédito no regulado, con una transacción de USD125 millones. La década empieza con el ingreso de Finsocial a la red de emprendedores Endeavor y el registro para la historia de ser la primera empresa de la Región Caribe en pertenecer a esta comunidad. Great Place to Work certifica a Finsocial como una de las mejores compañías para trabajar en Colombia en el 2019. Great Culture reconoce en Finsocial el desarrollo de una cultura organizacional Together, today is possibleAnd Finsocial signed the largest operation registered in Colombia for an originator of unregulated credit, with a transaction of USD125 million. The decade begins with the entry of Finsocial to the network of entrepreneurs Endeavor and the record for the history of being the first company in the Caribbean Region in belong to this community. Great Place to Work certifies Finsocial as one of the best companies for work in Colombia in 2019. Great Culture recognizes in Finsocial the development of an organizational culture amable y sostenible, la cual aspira a contar friendly and sustainable, which aspires to tell con 1.200 colaboradores para 2022.with 1,200 employees by 2022. El fondo de inversión internacional KANDEO The KANDEO international investment hace parte de Finsocial desde 2017. fund has been part of Finsocial since 2017.

Desde 2018 el BID destaca a Finsocial como empresa fintech de América Latina y el Caribe. Since 2018, the IDB has highlighted Finsocial as a fintech company in Latin America and the Caribbean.

FundaciónFinsocial

A través de la Fundación Finsocial la firma estimula el acceso a la educación deportiva y financiera para hogares de bajos ingresos y comunidades vulnerables, impactando a más de 26.000 personas. Through the Finsocial Foundation the firm stimulates access to sports education and financial support for low-income households and vulnerable communities, impacting more than 26,000 people.

En 2018 Finsocial recibió la distinción B Corp Best for the World por sus prácticas de responsabilidad social y medio ambiental. In 2018 Finsocial received the B Corp distinction Best for the World for its social and environmental responsibility.

Docentes Teachers

Pensionados Retired

Mujeres Women

Hombres Men

US $132.750 Millions Current portfolio balance

US $72.856 Millions Loan origination

US $58.045 Millions future income pending of current portfolio

0.36% past due payroll deduction loan portfolio index

EBITDA US $5.448 Millions 2019

Millions Profit before taxes Anual origination ⁽¹⁾

Data in US $ millones

27

2017 58 86 150 234 313 389

2018 2019F 202OE 2021E 202 2E 202 3E Equity ⁽¹⁾

Data in US $ millones

10 22 24 New injection x US $ 40 mill

63 82 111 151

2017 2018 2019F 202OE 2021E 202 2E 202 3E

Net profit ⁽¹⁾

Data in US $ millones

0 2 4 New injection x US$ 40 mill

10 19 29 40

2017 2018 2019F 202OE 2021E 202 2E 202 3E Current portfolio balance ⁽¹⁾⁽²⁾

Data in US $ millones

45 91 139 218 354 513 676

2017 2018 2019F 202OE 2021E 202 2E 202 3E

⁽¹⁾ Assumes FX COP / USD of 3,200 for all years ⁽²⁾LManaged portfolio levels in 2023 equate to a target market penetration of 5%

investor@finsocial .co www.finsocial.co finsocial finsocial finsocial _ sas

We are a company with heart, backed by a team of more than 550 collaborators and a robust technological base, which makes us the #1 option for our customers. Teachers in administrative careers and pensioners are our target market, these groups are one of the least risky in the consumer loan market due to the low volatility of their income and because they are paid directly by the National Government. We currently have more than 2 million potential customers across the country and we always strive to improve the quality of life of each one of them. We became the first in our segment to be endorsed and certified by the international rating agency Fitch Ratings, with ‘ABPS/S2(col)’ with a stable perspective outlook. According to the agency, we have shown “high performance in general functions as administrator.” We also earned the trust of large international and national investors, such as Kandeo Fund, and institutional funding, such as Bancolombia, Banco de Bogotá, Banco de Occidente, Coltefinanciera and Bancoomeva. We have great allies that support and protect our loans: Grupo

Sura and Seguros Mundial. We continue working to consolidate our position in the national and international market and to earn our customers’ trust. This year we hope to become a regulated entity, this will double our worth and quadruple any new investor’s value.

What sets us apart from the competition is our own technological platform (Finsonet) developed inhouse, with a scoring system that safely expands the potential customer base. We go where others cannot, we have strong brand identity and target niche development, since we have institutional funding by entities regulated by the Financial Superintendence.

We are permanently strengthening our base of funders and allied financial entities, among which we highlight the largest investment in Colombia by one of the most credible international banks: Morgan Stanley, who, trusting our country and the entrepreneurial ecosystem, has invested $125 million to boost the origination of new consumer loans. A privileged position that allows us to “swim with the big fish” and validate our operation. nuestra operación.

RED 5G is without a doubt FINSOCIAL business group’s top partner. The company, which started as our systems engineering department, had an exponential and accelerated growth, to such an extent that it achieved business independence and is today the quintessential technological supplier of every company that makes up the group and others.

The first technological creation of the company RED 5G was the Finsonet software for FINSOCIAL, which manages the loan procedure from the sales advisor to the disbursement. The platform has evolved and has gained experience in simplifying the customer, the advisor and the company’s efforts. All for our users to have a better experience.

Our platform developed inhouse by RED 5G began to grow and Finsonet started awakening the interest of different companies outside the group, bringing it to a higher level, no longer exclusive to FINSOCIAL but also made available to Bancoomeva, Allianz and Seguros Mundial.

RED 5G continued innovating and decided to launch online loans for third-party sales, its first customer under this modality was Bancoomeva, a company that, in addition to purchasing the FINSOCIAL portfolio, decided to acquire the platform.

Currently, the tech company is developing machine learning, the computer science of autonomously learning based on behavior, which will be applied to the decision engine to tell whether or not a customer can access a loan. .

Between 90 and 180 days is the time that Colombians must wait, on average, to receive specialized medical attention. This is one of the greatest barriers faced by socioeconomic strata 1, 2 and 3, which prevents them from accessing and enjoying optimal health services.

We entered the market in 2016 and we are the link between users and health, which is why we developed a technological platform that allows Colombians to access specialized doctors and services within 3 days at a lower price than a private appointment.

Our customers need no affiliation or membership, no monthly fees and no age limit are required.

They just have to sign up for free through our service channels (telephone, chat, app and web), schedule an appointment, generate the payment PIN and then go directly to the medical specialist or to the selected medical institution.

More than 13,000 people from the Colombian Caribbean have trusted our operation, we have a portfolio of more than 1,600 medical services in more than 71 specialties, with 103 service providers, in Atlántico, Cartagena, Santa Marta, Magangué and Valledupar.

We are an insurance agency engaged in protecting Colombians with our collective plans and through tech support tools.

Our digital development allows users to know the insurance policies they have, the current status of their claims, receive online service and their payment status.

The platform has been our greatest support in the development of “Para Todos” (For Everyone), which began operations in June 2018. Last year we became the first certified B corporation insurance agency in Colombia. We are focused on selling all types of insurance products, both to individuals and legal entities. And we ventured into the sale of microinsurance: insurance adapted to the needs of each customer at a low cost, to reach populations that our insurance providers usually do not reach, promoting social inclusion and working hard to become a large Insurtech company.

We believe in inclusion and that everyone deserves to be insured, at Finance for Everyone we created Wiipo, a technological financing platform for insurance policies that allows customers to access and pay for these services within a maximum term of 10 months.

Wiipo has a policy simulator, where the agency can project the value of their insurance and the respective fees to the customer. Once the conditions are accepted, the customer receives an OTP code that confirms the link between the service and the payment.

Our projection is to be among the big InsurTech companies in Colombia, we provide streamlined processes, without formalities, that do not require documentation and our customers can apply from anywhere.

We favor our customers with a lower financing interest rate than credit cards and we currently work with Allianz.

The Finsocial Foundation was born in 2018, supporting the generous nature, philanthropic spirit and corporate social responsibility of FINSOCIAL.

The objective of the foundation and of our Corporate Social Responsibility is to look after the interests of children, youth, women teachers head of household and older adults in the country, through different programs that promote education and seek comprehensive development in the most vulnerable areas, reducing poverty rates and transforming their mentality to project a better future.

We firmly believe that financial education is the secret to reduce poverty rates, social and gender inequality in the country, we work hard for financial inclusion in each of the links of the social chain to reduce economic indicators that put our society at a disadvantage.

Through our different campaigns, we have been able to reach even the most remote regions in the country. Our vision is to execute projects that promote education and improve the sociocultural environment of people with limited resources, such as: schools, educational centers and nursing homes for the elderly.

At the end of 2019, we socially impacted more than 25,000 families in Colombia through the following programs: Joy Brigades, supporting educational institutions, Goal Finsocial, promoting the development of sports activities, Financial Education, Finsocial Christmas, and volunteer programs in all the country.

Currently, we work with and support four world-renowned NGOs: Scholas, Global Money Week, UN Global Compact and UNICEF. We have partnered with UNICEF under the Schools of Peace cooperation program, which seeks to increase opportunities for children and adolescents in areas affected by the armed conflict in the department of Cordoba.

For 2022 we expect to be the country’s first nonprofit organization with high impact strategies in financial training, always hand in hand with national and international strategic partners and allies.

+25,000 families reached +15,400 school kits delivered to children from the schools with most needs in Colombia +1,000 pairs of shoes delivered to different foundations, 5 soccer schools and a total of 463 child athletes have received uniforms, cleats, balls and gear. +1,000 children and 100 teachers in more than 8 schools in the Department of Atlántico have been reached by our financial education training program. 28 schools supported with infrastructure to improve the educational environment of children and teachers; 36 volunteer events with FINSOCIAL employees. + 50.000 benefited families during Covid-19 through the delivery of foods.

Implementation of a financial education program in all of Finsocial´s credit lines with our international allied Aflatoun.