Roadshow presentation

Corporate presentation
June 2015
Track record building experience
and know-how
IPO (Ps$3.6bn)
First-ever leasing portfolio securitization in
Mexico (Ps$200mm)
Founded by
Rodrigo Lebois
1993
Issues largest-ever leasing
securitization in Mexico (Ps$2bn)
Begins offering factoring
2001
Luis Barroso
(CEO) joins
Unifin
2002
2006
2009
2007
2012
“Promecap” and “Análisis y
Ejecución de Proyectos San Luis”
acquire 20% of the Company
First public market
short-term issuance
(Ps$20mm)
2014
2015
Ps$200mm capital increase
US$400mm debut debt issuance in
international capital markets
Portfolio evolution
(Ps$mm)
$14,478
Unifin’s portfolio has grown more than 120x over the last 12 years
$11,488
$9,297
26% CAGR during the
2008–2010 crisis
$120
$160
$305
$440
$651
2002
2003
2004
2005
2006
Source: Company public filings.
$1,154
2007
$1,669
$1,935
2008
2009
$6,155
$3,903
$2,664
2010
2011
2012
2013
2014
YTD 15
1
Unifin at a glance

operating leasing company in
1 #1 independent
(1)
Latin America (22 years operating)
2 Loan portfolio and net income have grown at
a ’12–’14 CAGR of 37% and 41%,
respectively
with an average ROAE(2)
3 Strong profitability,
(3)
and ROAA of 39% and 4%, respectively
over the last 3 years
Selected financial information
(Ps$mm)
2014
YTD 2015
Assets
15,348
19,512
Gross portfolio
11,488
14,478
Shareholders’ equity
1,535
3,963
482
595
ROAE(2)
33.9%
37.9%
ROAA(3)
3.2%
5.0%
NPL(4) ratio
0.6%
0.6%
Equity / assets
10.0%
20.3%
Net income
Corporate structure
(4)
4 Strong asset quality with leasing NPLs
Unifin Financiera
historically below 1%
Unifin Credit
Unifin Autos
5 Targets mainly the expanding SME segment
Leasing
Factoring
9.5%
Source: Company public filings.
(1)
(2)
(3)
(4)
Source: The Alta Group, 2013.
ROAE: Return on Average Equity.
ROAA: Return on Average Assets.
NPLs: Non-performing loans, with more than 30 days past due.
8.3%
Auto Loans
& Other
14.5%
76.0%
91.7%
Asset
purchase
and sale
As % of YTD 15 total portfolio
As % of YTD 15 total revenues
2
Unifin’s highlights
1
Leadership
Leading operating leasing company
focused in a market with strong growth
potential
6
Broad
experience
2
Highly experienced management team
with best-in-class processes and
corporate governance
5
Origination
process
Streamlined origination process with
robust credit risk management practices
Expanding
footprint
3
Expanding commercial structure, with
consolidated regional offices and a lean
national platform
Profitability
Sound financial performance delivering
strong growth and profitability
4
Financial
flexibility
Strong balance sheet, supported by
conservative leverage and sound
liquidity
3
1
Unifin’s target segment (SMEs) is
underserved in terms of financial products
Corporates are still underserved in Mexico…
2013 GDP $277
(US$bn)
105.9
$2,246
$378
$202
…driven by the underrepresented SME segment
$1,261
26%
48%
6.8
70.7
85%
50.3
4.1
47.8
26.9
99%
4.0
31.4
20.5
19.2
74%
30.6
0.6
52%
10.8
0.8
15%
Economic units
Total loans as % of GDP (2013)
Leasing portafolio as % of GDP (2013)
Source: World bank and local regulators from each country.
Employment
SMEs
Commercial loans as % of GDP (2014)
% of GDP
Financing
Other enterprises
Source: Mexican Ministry of Finance, as of 2012.
Operating leasing adheres to the SMEs’ needs
Use of capital asset
without upfront
purchase
No use of equity or
bank debt
Lease payments are
an operating
expense and are tax
deductible
Leasing provides SMEs with the benefits of owning capital assets, without having a relevant
impact on their liquidity
4
1
Largest independent local player in the
Mexican leasing space
Unifin ranked among the top players in Mexico and
LatAm
Company
Independent
LatAm rank
Unifin
1
SKC Rental
2
CHG Meridian Mexico
3
Financiera Bepensa
4
CSI Leasing de Mexico
5
ATC Sitios Infraco S.A.S
6
Tanner
7
Docuformas
8
Corporacion Financiera Atlas
9
CSI Latina Arrendamiento Mercantil
10
ATC Sitios de Colombia S.A.S
11
CGM Leasing
12
Relevant leasing companies in Mexico
Local / Independent
Country
Bank related
International
Brand / Specialized
Source: The Alta Group, as of 2013.
Independent leader focused on profitable segments with a broad product offering
5
1
Three main products providing fitted value
proposal for the Mexican SMEs
Leasing
Destination
 Machinery,
As % of total
portfolio(1)
 76.0%
Target clients
 SMEs
 Individuals
equipment & vehicles
with business
Factoring
 Working capital
 Any
 9.5%
 2.1%
 SMEs
 Individuals
activities
Number of
clients

Amount
 Ps$100,000 –
Tenor
 12
Rate & fees
 Implicit rate: 16% – 23% fixed
 Fee: 1% – 3% per operation
1,867
$150,000,000
− Average: ~Ps$1,500,000
– 48 months
with business
(1)
 Personal guarantees
− Collateral for transactions
>Ps$5mm may be required,
upon credit committee request
Other loans account for 12.4% of total portfolio.
type of vehicle
 SMEs
 Individuals
activities


318
 Ps$500,000 –
8
$150,000,000
– 180 days
 Rate: TIIE + 12.5% – 19.0%
 Fee: 0.5% – 1.5% of the total
amount per month term
Guarantee
Auto loans
 Assignment of
loan
documentation guarantees and,
upon credit committee request,
collateral on real property
1,341
 Up
to 80% of the vehicle’s price
 12
– 60 months
 Rate: 12% – 18% fixed
 Fee:12 – 48 month loans:
2%
origination; 60 month loans: 3%
origination
 Personal guarantees and
collateral
6
1
Established presence and model has built up
barriers to entry
 22
years operating, catering the needs of the SME segment
 Tailor
made systems and technology
Know-how
 Robust
origination and collection processes
 Tailored
 Total
Scale and
presence
 399
credit analysis model (16 scorecards)
assets of Ps$19,512 million as of June 2015
employees and offices in 9 cities located in Mexico’s main economic hubs
 Required
infrastructure in place to support expected growth
 Purchasing
power with dealers and suppliers
 Shareholders’
 Authorized
Capital and
funding
 Access
equity of Ps$3,963 million as of June 2015
funding facilities of Ps$21,167 million (Ps$7,597 million available)
to multiple, competitive funding sources
− Securitizations, public debt (local and international), bank loans, development banks
and strong cash flow generation
7
2
Streamlined origination process with robust
credit risk management practices
6
Renewals / Sale of assets
Client prospecting
82% of clients renew their
leases
Dedicated centralized area to
define potential clients per
region
100% of the assets are sold at
the end of the contract
5
Credit Committee
Receive application
Analyze and interpret (credit
scoring)
2
Financial figures
Tax reports
Electronic, physical and
corporate committees
(depending on lease size)
4
1
Sector outlook
Credit experience
References
Credit & Legal bureau
Requires 3 banking and commercial
references
3
Default history
NPL history
Acceptance rate ~40%
Litigation history
On-going portfolio monitoring supported by an efficient multi-stage collection process
8
2 Unifin's specialized collection processes have helped
maintain NPLs consistently below 1%(1)

Collection process driven by distinct, specialized teams at each stage of the collection process
Días
-5
Friendly
reminder
0
Due date
2 to 7
8 to 30
31 to 60
61 to 90
Second
reminder
Call center
action
Extrajudicial
collection
Workout
Team 1
Team 2
Team 3
Team 4
>90
Judicial
collection
Collection is greatly facilitated by Unifin maintaining ownership of the asset
Client’s shareholder(s) and / or top management are personally liable in case of default or the
asset not being returned
Source: Company.
(1)
Non-performing loans, with more than 30 days past due.
9
3
Strong growth of highly profitable
operational results
Net income(1)
Revenues
(Ps$mm)
595
(Ps$mm)
5,179
482
60
3,154
232
International
notes & Hedge
mark-tomarket
338
2,973
2,325
Sale of shares
in Unifin
Agente de
Seguros y
Fianzas
247
243
2,135
40
2012
2013
Adjusted ROAE and
2014
YTD 14
YTD 15
ROAA(2)
2013
2014
363
YTD 14
YTD 15
Dividends paid
(Ps$mm)
Adj. ROAE
(4)
40.7%
2012
207
41.5%
37.9%
100
100
90
33.9%
60
Adj.
ROAA
4.2%
3.8%
3.2%
2012
2013
2014 (2)
5.0%
YTD 15 (3)
Payout
68.8%
ratio(5)
24.6%
29.6%
20.7%
2012
2013
2014
YTD 15
Unifin has reported positive net income for more than 60 consecutive quarters
Source:
(1)
(2)
(3)
(4)
(5)
Company public filings.
Broken down non-recurring items are shown on an after-tax basis.
In 2014, Unifin’s shareholders made a Ps$200 million capital injection.
Calculated using the net income of the last 12 months divided by the average total assets.
Calculated using the net income of the last 12 months divided by the average equity.
Calculated as dividends paid in current year divided by previous year’s net income.
10
3
Unifin has consistently delivered high
growth
…along with factoring…
Leasing origination continues to grow…
(Ps$mm)
(Ps$mm)
6,307
5,257
5,389
4,616
4,758
3,165
3,319
2,390
2,664
2,083
2011
2012
3,751
2013
2014
YTD 14
YTD 15
2011
2,311
2012
2013
2014
YTD 14
YTD 15
…supported by sound origination pipeline, with three principal sources of growth
Current pipeline
Organic growth
National Infrastructure Program
 Ps$8.6bn of approved credits awaiting disbursal
 Additional Ps$13bn in application
 Plans to open 2 new regional offices + 2 new
sales teams in Mexico City
 US$596bn of additional spending with 70%
targeting energy, communications and transport
 Unifin plans to target 0.5% of the planned
investments over the next 5 years
Foreseeable strong growth
Source: Company public filings.
11
Diversified portfolio by industry and
geography, with highly fragmented client base
Client’s economic sector
Geographic zone
Type of equipment
Mexico City &
Metropolitan area
Nuevo Leon
Services
Leasing
19%
State of Mexico
19%
Commerce
25%
Coahuila
3%
3%
Industry and
Manufacturing
16%
14%
42%
Transportation
Campeche
Other
Queretaro
6% 7%
Construction
Machinery
29%
Tamaulipas
48%
6%
3%
5%
Transportation
26%
29%
Tabasco
Others (24 states)
Client’s economic sector
Geographic zone
Services
5%
6%
15%
Factoring
4
Commerce
Mexico City &
Metropolitan area
State of Mexico
1%
4%
3%
Nuevo Leon
7%
44%
Industry and
Manufacturing
Queretaro
45%
8%
Jalisco
15%
Transportation
21%
Construction
Aguascalientes
26%
Campeche
Others (11 states)
~3,500 clients
Largest exposure represents
<2%
Top 25 represents <27%
Leasing is Unifin’s core business accounting for 76% and 92% of the total portfolio and
revenues in 2Q 2015, respectively
Source: Company public filings.
Note:
As of 2Q 2015.
12
4
Strong funding profile, with ongoing access
to liquidity
Unifin maintains a diverse funding profile…
…while increasing its ample liquidity
(Ps$mm)
(Ps$mm)
21,167
Maturity
profile
19,052
13,570
14
months
12,597
Available
funding:
7,597
15,195
20%
19%
13,570
12,597
9,015
49
months
11,405
43%
26%
9,015
48%
5,668
22%
18%
5,668
35%
52%
32%
37%
44
months
46%
2012
Securitization
Source: Company.
2013
2014
Public debt
YTD 2015
Bank loans
2012
2013
Authorized facilities
2014
YTD 2015
Outstanding debt
13
4
Strong balance sheet, supported by conservative
levels of leverage despite rapid portfolio growth
Financial liabilities (incl. securitizations)
Leverage (excl. securitizations)
(Ps$mm)
6.3x
5.5x
12,597
13,570
5.5x
5.4x
4.5x
4.5x
9,015
2.7x
2.2x
5,668
2012
2013
2014
YTD 2015
2012
2013
Total leverage
Equity
2014
YTD 2015
Financial leverage (1)
Equity to assets
(Ps$mm)
20.3%
3,963
9.6%
8.9%
2012
2013
1,535
675
2012
10.0%
953
2013
2014
YTD 2015
Source: Company public filings.
(1)
Calculated as financial debt (excluding securitizations) divided by shareholders’ equity.
2014
YTD 2015
14
4
Prudent risk management
Assets
Liabilities

Leasing portfolio in fixed rate and factoring in
variable rate

Average term of 36 months

38% international bond, 42% securitizations and
20% bank debt
− 96.5% long-term and 4.4% short-term

Assets in local currency

Average term of 40 months

44% of financial liabilities in USD
Risk management
Business plan considers an increasing interest rate
Securitizations have an interest rate cap on TIIE(1) at 7.0%
Financial liabilities denominated in USD are fully hedged (principal + interest)
(1)
Mexican interbank lending rate.
15
5 Targeted, growing presence in Mexico’s key commercial
centers with virtual presence in the whole country
The regions in which Unifin has physical
presence represent 53.8% of Mexico’s 2013
GDP and 47.9% of the total SMEs…
Hermosillo
Chihuahua
Monterrey
Queretaro
Guadalajara
Bajio
Veracruz
Merida
% GDP
% SMEs
Consolidated presence
52.3%
45.6%
Recent openings
1.5%
2.3%
Upcoming openings
5.3%
6.1%
Cancun
…additionally, Unifin’s presence includes 4 of
the top 5 regions in number of SMEs
(% of total SMEs by state)
Mexico City &
Metropolitan
area
12.2%
Puebla
9.7%
7.0%
State of
Mexico
DF
Jalisco
6.1%
5.8%
Veracruz
Puebla
Expansion to 9 offices from 3 in 2012, with one new opening expected in 2015
Source: Company; INEGI.
16
5 Despite a growing workforce, Unifin has maintained a
high level of operating efficiency supporting its margins
Unifin continues to increase its workforce since 2012…
…with the majority comprised of an incentivized,
variably compensated sales force…
(Number of employees)
1.5x
7%
399
9%
341
259
Finance &
Administration
Sales force
33%
280
16%
Operations
Corporate
35%
2012
2013
2014
I.T.
YTD 15
…while maintaining strong levels of operating efficiency
Efficiency ratio(2)
Administrative expenses / total assets
4.7%
49.6%
49.4%
44.6%
3.4%
3.5%
38.6%
2.9%
2012
2013
2014
YTD 15 (1)
Source: Company public filings.
(1)
Calculated using annualized administrative expenses for the quarter.
(2)
Calculated as operating expenses divided by the sum of net financial margin before provisions plus net fees.
2012
2013
2014
YTD 15
17
6
Outstanding and experienced management
team
Name
Position
Years of
experience in the
financial sector
Years at Unifin
Rodrigo Lebois
Chairman
34
22
Luis Barroso
Chief Executive Officer
32
14
Jose María Muñíz
Chief Institutional Relations Officer
45
10
Gerardo Mier y Terán
Chief Financial Officer
10
4
Rodrigo Balli
Chief Operating Officer
16
10
Michael Goeters
Executive Vice President Leasing
25
12
Juan José del Cueto
Executive Vice President
10
5
Diego Aspe
Executive Vice President Factoring
33
9
Eduardo Castillo
Executive Vice President Regional
33
1
Gerardo Tietzsch
Chief Business Development Officer
16
<1
Source: Company public filings.
#1
leasing
company
in LatAm
Approx.
3,500
clients
Portfolio
of
Ps$14.4
bn
18
Appendix
19
Financial statements
Income statement
(P s$ mm)
Operating lease income
Interest income
Other lease benefits
Depreciation of assets under operating lease
Interest expense
Other lease expenses
Financial margin
Allowance for loan losses
Financial margin adjusted for credit risk
Commissions and fees (net)
Financial intermediation results
Other operation income (net)
Administrative and promotional expenses
Operating income
Valuation effects of other permanent investments
Income before income tax
Current income tax
Deferred income tax
Income tax expense
Consolidated net income for the year
Source: Company public filings.
2012
$1,842.7
355.9
126.8
(1,050.1)
(452.2)
(153.3)
669.8
(14.4)
655.4
(6.1)
42.8
(10.1)
(328.0)
354.0
(11.3)
342.7
(178.8)
79.6
(99.2)
243.5
2013
$2,591.7
367.7
194.3
(1,536.1)
(573.6)
(221.0)
823.0
(63.8)
759.2
(10.2)
39.3
(8.3)
(362.8)
417.2
11.3
428.5
(291.8)
201.0
(90.8)
337.7
2014
$3,648.6
1,146.9
383.2
(2,150.1)
(1,513.7)
(425.0)
1,089.9
30.0
1,119.9
(10.0)
118.7
11.3
(535.1)
704.8
–
704.8
(456.5)
234.2
(222.3)
482.5
YTD 2014
$1,660.3
256.2
218.2
(941.5)
(372.2)
(228.7)
592.1
40.0
632.1
(16.0)
–
11.7
(267.6)
360.2
–
360.2
(165.1)
52.0
(113.0)
247.2
YTD 2015
$2,436.5
308.9
227.3
(1,402.6)
(554.4)
(244.7)
770.9
–
770.9
(15.9)
337.3
26.0
(292.0)
826.2
–
826.2
(300.3)
68.8
(231.5)
594.7
20
Financial statements (cont’d)
Balance sheet
(P s$ mm)
Cash and cash equivalents
Derivatives with trading purposes
Performing loans portfolio:
Commercial loans
Consumer loans
Total performing loans portfolio
Past due loans portfolio:
Commercial loans
Total past due loans portfolio
Total loans portfolio
Less:
Allowance for loan losses
Loans portfolio (net)
Other accounts receivable
Foreclosed assets (net)
Property, machinery and equipment (net)
Valuation of other permanent investments
Other assets:
Deferred charges and advanced payments
Deferred income tax
Other long term assets
Total assets
Debt securities
Short-term
Long-term
Bank borrowings and loans from other entities:
Short-term
Long-term
Other accounts payable:
Income tax payable
Sundry creditors and other accounts payable
Deferred credits and advanced collections
Total liabilities
Contributed capital
Capital stock
Share premium
Earned capital:
Capital reserves
Retained earnings
Consolidated net income for the year
Total stockholders’ equity
Total liabilities and stockholders’ equity
Off-balance sheet items:
Contractual lease rentals to be accrued held in trust
Contractual lease rentals to be accrued
Source: Company public filings.
2012
$206.5
21.0
2013
$1,009.7
42.2
2014
$573.7
856.4
YTD 2014
$591.4
12.4
YYD 2015
$1,048.6
1,477.6
1,852.6
81.1
1,933.7
1,982.8
178.6
2,161.4
2,767.6
236.7
3,004.3
2,172.1
200.2
2,372.2
3,577.8
307.4
3,885.2
20.8
20.8
1,954.5
178.4
178.4
2,339.8
70.2
70.2
3,074.5
66.0
66.0
2,438.2
82.3
82.3
3,967.5
(56.6)
1,897.9
101.4
13.0
4,249.0
3.3
(120.3)
2,219.5
188.3
12.7
6,689.0
14.9
(88.1)
2,986.4
211.9
130.6
9,610.7
14.9
(79.5)
2,357.8
45.6
38.6
7,927.4
14.5
(87.9)
3,879.6
54.4
156.1
11,689.7
18.8
381.2
110.7
10.9
6,994.9
267.7
311.7
3.0
10,758.7
406.0
545.8
11.6
15,348.0
383.8
363.7
15.7
11,752.4
519.2
614.6
53.0
19,511.5
1,019.1
3,602.7
4,621.8
1,016.1
5,672.7
6,688.8
166.6
9,975.8
10,142.4
12.8
6,428.8
6,441.7
164.8
10,740.9
10,905.7
897.6
149.1
1,046.7
1,735.6
590.9
2,326.5
2,061.7
392.8
2,454.5
2,155.9
819.9
2,975.9
2,072.7
591.9
2,664.6
36.5
546.5
583.0
68.6
6,320.1
83.5
611.1
694.6
95.9
9,805.8
100.2
982.3
1,082.5
133.3
13,812.7
27.1
800.6
827.7
106.9
10,352.2
89.0
1,715.3
1,804.3
174.0
15,548.7
275.0
125.0
400.0
275.0
125.0
400.0
875.0
125.0
1,000.0
1,000.0
1,000.0
2,932.7
2,932.7
17.1
14.4
243.4
674.9
6,995.0
29.3
185.7
338.0
953.0
10,758.8
46.2
6.7
482.4
1,535.3
15,348.0
29.3
123.6
247.2
1,400.1
11,752.4
70.3
365.0
594.8
3,962.8
19,511.5
3,271.0
929.9
4,200.9
5,587.0
1,370.7
6,957.7
6,038.4
2,375.4
8,413.8
5,401.5
1,919.5
7,321.0
6,229.6
4,281.3
10,510.9
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About UNIFIN
UNIFIN is a non-regulated Mexican leasing company, operating as a non-banking financial services company, specializing in three
main business lines: operating leasing, factoring and auto and other lending. Through UNIFIN’s leasing business line, its core
business line, the Company offers operating leases for all types of equipment and machinery, various types of transportation vehicles
(including cars, trucks, helicopters, airplanes and other vessels) and other assets in a variety of industries. Through its factoring
business line, UNIFIN provides liquidity and financing solutions to its customers by purchasing or discounting accounts receivable
and by providing vendor financing. UNIFIN’s auto loans and other lending business line is focused on financing the acquisition of new
and used vehicles, while the other lending portion of such business line includes financing working capital needs and the acquisition
of other capital assets.
This document may contain certain forward-looking statements. These statements are non-historical facts, and they are based on the
current vision of the Management of Unifin Financiera, S.A.B. de C.V., SOFOM, ENR for future economic circumstances, the
conditions of the industry, the performance of the Company and its financial results. The terms "anticipated", "believe", "estimate",
"expect", "plan" and other similar terms related to the Company, are solely intended to identify estimates or predictions. The
statements relating to the declaration or the payment of dividends, the implementation of the main operational and financial
strategies and plans of investment of equity, the direction of future operations and the factors or trends that affect the financial
condition, the liquidity or the operating results of the Company are examples of such statements. Such statements reflect the current
expectations of the management and are subject to various risks and uncertainties. There is no guarantee that the expected events,
trends or results will occur. The statements are based on several suppositions and factors, including economic general conditions
and market conditions, industry conditions and various factors of operation. Any change in such suppositions or factors may cause
the actual results to differ from expectations.
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