Project Lazarus | NDRS Presentation (BofA)

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INVESTORS PRESENTATION AUGUST 2021

Transcript of Project Lazarus | NDRS Presentation (BofA)

Page 1: Project Lazarus | NDRS Presentation (BofA)

INVESTORS PRESENTATIONAUGUST 2021

Page 2: Project Lazarus | NDRS Presentation (BofA)

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Disclaimer

IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Wiz Soluções e Corretagem de

Seguros S.A. and its subsidiaries (collectively, the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (the

“Information”). In accessing the presentation, you agree to be bound by the following terms and conditions.

The Information may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This document may not be

removed from the premises. If this document has been received in error it must be returned immediately to the Company.

The Information is not intended for potential investors and does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase

securities of the Company, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. This document and its contents may

not be viewed by persons within the United States or “U.S. Persons” (as defined in Regulation S under the Securities Act of 1933, as amended (the “Securities Act”) unless they are qualified

institutional buyers “QIBs” as defined in Rule 144A under the Securities Act. By accessing the Information, you represent that you are (i): a non-U.S. person that is outside the United States or

(ii) a QIB You acknowledge that all or part of the Information may constitute material non-public information and you agree that you will not use such information or take any action in any way

that might give rise to any infringement of law, regulations or restrictions in this regard.

The Information has been prepared by the Company, and no other party accepts any responsibility whatsoever, or makes any representation or warranty, express or implied, for the contents of

the Information, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection with the Company and nothing in this document or at

this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future.

The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking

statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These

statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “bel ieve,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,”

“project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negat ive thereof. Such forward-looking statements involve known and

unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the Company’s actual results, performance or achievements to be materially different

from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions

regarding the Company’s present and future business strategies and the environment in which it will operate in the future.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or

the opinions contained therein. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies

only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any

updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from

any change in the Company’s expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising

after the date of this document. Market data used in the Information not attributed to a specific source are estimates of the Company and have not been independently verified.

Page 3: Project Lazarus | NDRS Presentation (BofA)

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Our history

Wiz has a successful financial and operational history, supported by

strategic partnerships and high quality management team

Foundation of Wiz¹

19732018

2020

2015

2019

2021

End of Rede CAIXA Operations

Wiz selected in competitive process

of Banco BRB

IPO

2012

GP Investimentos andCAIXA Seguradora committing to making

the IPO

Wiz' IPO (June 2015)

Celebration of New Operational Contractswith Caixa Seguridade, Caixa Seguros Holding and CNP Assurances

Wiz BPO Inception

Partnershipbetween Wiz

and Inter

Partnership between Wiz and

BMG

Operation seeks to sell insurance in indirect B2B2C

channels

Future ofWiz

Start ofOperations

Business Expansion New Directions

Commercialization

on Counter

CAIXA

Consolidation of the business

model and technological

transformation

Selected events in

diversification and inorganic

growth, among others

Wiz Vision

Start of Company`s turnaround process

New Management

Notes: (1) Wiz was founded under the name “FENAE Corretora”, which also became “Par Corretora” before being called Wiz.

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Bank Counter

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Core Business - Bancassurance Credit Solutions

Who we are

Wiz is one of the largest insurance and credit distributors in the

country and operates in multiple channels through its Business Units

We operate through

our Business Units,

in models B2B2C

and B2B2B, offering

on-site, remote and

digital solutions for

sale and after-sales

of insurance and

financial products.

D I V E R S I F I E D

BUSINESS MODEL

REDE

CAIXA¹

²

B2B Insurance

Non-Bank Counter Open Sea Channel Owner Open Sea

Our Partners

79.6% 0.8% 4.9% 5.4% 9.2%

Share of 1H21 Pro-Forma

Gross Revenue

Notes: (1) Run-off operation; (2) Pending closing.

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We are WizWe operate in the distribution of insurance and financial products+ 48 years of History

Business units+ 10

Employees4

+1.6 thousand

states of Brazil4Present in + 23

Gross Revenue5 in 2020

R$ 1,044 bn

Adjusted Net Income in 2020

R$ 300 mm

OUR

RESULTS

Insurance

Credit

Solutions

Premium Issued in

2020²

+ R$ 35 bn

Commercialized Credit in

2020³

+ R$ 5.5 bn

✓ Solutions that

encompass the entire

value chain of the

insurance market

Our Business Units offer face-to-face, remote and digital solutions for the

sale and after-sales of insurance and financial products

WIZSMarket Cap1+ R$ 2.8 bn

Notes: (1) Reference Date: 07/14/2021; (2) Includes insurance premium issued, capitalization bonds and pension contributions; (3) Accumulated result in 2020; (4) Reference Date: 03/31/2021; (5) Pro-Forma Gross Revenue.

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Our business model

We enhance the results of our partners in the distribution of

insurance and credit by adding know-how in marketing & sales

Wiz Business Model Wiz has unique expertises that

together turns the Company

into a strategic partner for

insurance and financial

players

✓ Strategy

✓ Market / Tech

✓ Sales

✓ After Sales

Providers

Products

Channels

Governance

Strategy

Marketing

Sales

Direct Sale

RemoteSale

Digital

Omnichannel

Partners

Proprietary Channels

Open Sea

Counters

Banks

Dealerships

Others..

Insurers

Banks

HealthInsurers

ConsortiumAdministrators

FIDCs

Products

Planning Execution

Sales Channels

+ 10 Business Partners

Results Tracking

KPIs

CRMs

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Our positioning

Wiz has a unique business model in the insurance and credit sector, with

high expertise in bancassurance operations, aligning diversification and

high growth profile

Profound knowledge in the distribution

of insurance products

+ 48 years of experience in

banking channel composed of more

than 3 thousand points of sale

Assertive inorganic growth strategy

resulting in accretive combinations

and leverage model of new

operations

Robust business model with

diversified solutions

Differentiated operational model

allows scalability for new

business, leveraging

diversification strategy

Solid financial

performance

High operational efficiency

resulting in top line growth and

solid cash generation

Inorganic growth strategy

accelerating Wiz’s

diversification

Strong corporate culture underpinned by management alignment, shareholder accountability and commitment with Company’s long term growth

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Rede CAIXA Case: 47 years serving the largest bancassurance counter in the country

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Profound knowledge in the distribution of insurance

products Rede

PenetrationCredit Life Insurance/Payroll Credit

55,9%

0%

20%

40%

60%

2015 2016 2017

59,8%

0%

25%

50%

75%

2015 2016 2017

PenetrationResidential/Real Estate Financing

4,3 4,86,0 6,0 6,7 8,2

2015 2016 2017 2018 2019 2020

Premium Issued(in R$ bn)

Marketing SalesStrategy

• Commercial Strength• Product

Development of products, correlation analysis and

customer’s score carding

• Channel

Distribution channel strategy tailored for the agencies

• Bancassurance Model

• Direct Selling Model

Bank transaction Insurance offer

Customer portfolio Insurance offer

Achieved Results

On-site sales promoting engagement and

direct sale of insurance in Caixa branches.Wiz Asven (sales assistants) provides Support, product

suitability and promotion of Bancassurance products for

Caixa’s employees

Margin increase strategy with direct sales from Wiz

Asven (sales assistants) to selected customers judged

inclined to acquiring products and insurance

• Management

Monitoring the results.

Market Share Evolution(1)

8th

123456789

4th

123456789

2013 2020

14,6% CAGR13-205,1% CAGR13-20

Rede Caixa Market

Notes: (1) Source: SUSEP; written premiums in all segements.

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24,2 22,4

3237 34,7 36,2

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

33,2 52,775,2

104,0148,3

222,8

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

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Robust business model with diversified solutions

Inter Seguros Case: a skyrocketing distribution channel in the most complete digital insurance platfrom in the country

Achieved Results

Customer Portfolio(in thousands)

Net Premium(in R$ mm)

Number of Sales(in thousands)

Strategy Marketing Sales

• Appassurance

Sales model integrated in the customer journey with

product offer contextualized to the customer profile.

Insurance offer at the time of bank transaction, in

and out of the super app.

Contextualized Offer Data Analytics Segmentation

Bank transaction Adherent insurance

• Bancassurance

• Product

Construction of the most complete platform in Brazil.

Digital products

on the platform

+17

Marketing

Digital Products

Growth goes through structuring of the Business-MKT-IT tripod model.

IT

• Sales campaigns

Coordination of sales campaigns adhering to the

bank's strategies.

• Products' offer adhering to the

customer profile

• Protection Platform

Development Journey

75,7 120,2 180,1254,9

366,9

532

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

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Expansion of Product Portfolio Commercial Efficiency Expansion of Distribution Channels Operational and Financial Efficiency

Product Launches

for 2021+5

• Focus in products with purchase

recurrence and portfolio creation

• New products for all channels

Digital Physical

• Targeted and assertive commercial

strategy

• Commercial force engagement

through Wiz Engagement program

Corban Lojas HelpB2B and

B2C

• Leverage on BMG’s current distribution

channels

• Enhancement of channels in alignment

with BMG’s growth strategy

Digital

BMG Ecosystem Customer Service

Corporate Tax processes

Reduction in costs Operations renewal

Projects

Management

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Robust business model with diversified solutions

4,57,1

14,1

4Q20 1Q21 2Q21

4,36,0

12,5

4Q20 1Q21 2Q21

22,634,2

56,0

4Q20 1Q21 2Q21

• Adoption of MGW – Wiz Management

Model

• Constant seek for operational efficiency

enhancement

Achieved Results

BMG Corretora: going beyond the traditional banking environment, we specialize in selling through correspondents

Net Revenue(in R$ mm)

Gross Profit(in R$ mm)

Adj. EBITDA(in R$ mm)

Page 11: Project Lazarus | NDRS Presentation (BofA)

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Strategy Marketing Sales

• Market place of credit productsMarketplace of credit products for distributor partners.

• Expansion of the commercial networkFocus on partner's adherent profile for the asserted product

• Increase Market shareExplore opportunities with the goal to increase market share

• ProductStrategic partnerships with consortia providers –CaixaConsórcios, Itaú Consórcios, Santander Consórcios and Paraná Banco

• ChannelSegmentation of the commercial network - analysis of the potential of the partner to define the portfolio of products to be commercialized

• PromotionTailored marketing campaings

Achieved Results

• Integrated platformSales platform promotion (PPW) to support commercial network partners.

• Commercial force training

• Sales campaigns

Numbers of Partners(in thousands)

Volume of Credit Letters Sold(in R$ mm)

Robust business model with diversified solutions

Wiz Parceiros Case: one of the largest financial product distribution netwroks in the country

379 436526

599 662 714

1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

566,4 522,3 631,6 549,5 599,4

972,5 1.071,7843,7

1.006,6

1.421,21.647,7

1.467,8 1.378,21.612,3

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

Page 12: Project Lazarus | NDRS Presentation (BofA)

M&A Rationale

Large structural opportunity to complement our continuously growing range of diversified solutions

Client and Products Synergy

Transaction Feasibility

High Governance Standards

Mapped Opportunities

Recent

Transactions

▪ Oportunity backed by structural tailwinds in the

insurance and credit sectors, products that could be

comercialized by the targets distribution channels

✓ Bancassurance targets

✓ Credit counter targets

✓ Real Estate players targets

✓ Auto Dealerships targets

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Page 13: Project Lazarus | NDRS Presentation (BofA)

Client and Products Synergy

Counter Partnership (B2B) B2B2C Performance

Target Definition StrategyMarket Approach Strategy

Target Characteristic

1

2DISTINCT CORE BUSINESS

WITH LARGE NUMBER OF

TRANSACTIONS

On-site counter Digital counter/ Marketplaces

Performance

• Value creation in insurance play

• Commercial activation (engagement)

• Results management

• Sales force model

• Multichannel: from in-person to remote

• Service and after sales

Offer to partners

FIT WITH INSURANCE AND/

OR FINANCIAL PRODUCTS

Specialist in channel management

and distribution of financial and

insurance products

Focus on counters that promote business in their core business that are fit for profitability

through the sale of financial and insurance products

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The inorganic growth strategy involves identifying

profitable opportunities in new counters

Page 14: Project Lazarus | NDRS Presentation (BofA)

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Successful Transactions Resulting in Accretive

Combinations...

✓ Wiz won the state bank’s bidding process to operate through BRB’s direct an indirect channels for the next 20 years

✓ Creation of BRB Corretora de Seguros, an exclsuive brokerage firm for insurance products

419%2

Value Accretion

NewCo.

50.1%49.9%

Jul/21

703%2

Value Accretion

✓ Wiz entered into an agreement where Comp Line would assign and transfer to Wiz BPO certain service and agreements of which Comp Line was party

✓ The absorbed structure included commercial agreements, staff and physical structure

Other Shareholders

Inter Seuros

93.0%7.0%

Control Stake

290%1

Gross Revenue

Growth

Dec/18

✓ Acquisition of a stake in BMG Corretora for a 20 year exclusivity contract to operate through BMG’s direct and indirect distribution channels

BMG

40.0%60.0%

703%2

Value Accretion

145%1

Gross Revenue

Growth

Jun/20

✓ Acquisition of a stake in Inter Seguros, a 50 year exclusivity contract for sales of insurance products through Inter’s digital and physical distribution channels

193%1

Gross Revenue

Growth

1,866%2

Value Accretion

Inter Seuros

40.0%60.0%

Non-controling Stake

Jun/19

Control Stake Control Stake

Notes: (1) Quarterly revenue since acquisition date until 2Q21; (2) Considers the current street valuation for each transaction divided by the purchase price of the transaction.

Page 15: Project Lazarus | NDRS Presentation (BofA)

82 149 173

252 283 304 399

128 145

181

205 225

250 250 250

261

128 146

38 52

91 123

210

222

104109

21

43

1441

-

120

50

96

297

392451

592656

785

1.044

424

536

2014 2015 2016 2017 2018 2019 2020 1H20 1H21

Rede CAIXA - New Sales Rede CAIXA - Stock Others BUs Inter Seguros BMG Corretora

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Pro-forma Gross Revenue¹

In R$ mm

23% CAGR

26% Growth

Share - Pro-forma Gross Revenue² 1H21

27%27%

54%

CAIXA

OPER.

9% 5% 4%

OTHERS³

2%8%18%

Notes: (1) Including Inter Seguros revenue as of July/2019; (2) Including Inter Seguros and BMG Corretora revenue as of January 2020; (3) Others: Wiz B2U, Wiz Conseg and Wiz Benefícios.

…and accelerating Wiz’s Diversification

Run Off

Page 16: Project Lazarus | NDRS Presentation (BofA)

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Sound Financial Performance

Net revenue Adjusted1 EBITDA & Margin Adjusted2 Net Income & Margin

CAGR14-20: 19.6% CAGR14-20: 23.5% CAGR14-20: 23.4%

In R$ mmIn R$ mm In R$ mm

Notes: (1) Adjusted by other expenses and non-recurring expenses ; (2) Adjusted by Tax Shield, other expenses and non-recurring expenses.

274

364 404

530

585

682

803

319

445

125

189 202

305 324

382

443

159

218

45%

52%50%

58%55% 56% 55%

85 100

138

210 220

251

300

107

162

31%

27%

34%

40%38% 37% 37%

39.3% Growth

37.0% Growth51.8% Growth

Page 17: Project Lazarus | NDRS Presentation (BofA)

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Profound knowledge and

proven experience in the

sector

Win-win value

proposition for

strategic partnerships

Streamlined

insurance and

financial player

Diversified business

operation based on our

business units

Solid track record of

growth and profitability

Closing Remarks

Result driven and aligned

management, with

shareholder accountability

Page 18: Project Lazarus | NDRS Presentation (BofA)

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Our Focus for the Future

IMPROVING STANDARD OF GOVERNANCE… with management aligned with shareholders goals

CONTINUING TRACK-RECORD OF PROFITABILITY… increasing returns and expanding margins

MAINTAINING GROWTH… with current and new (M&A) partnerships

Page 19: Project Lazarus | NDRS Presentation (BofA)

Website: www.ri.wizsolucoes.com.br

E-mail: [email protected]

Phone: +55 (11) 3080-0100

Investor Relations

Thank You!

20

Page 20: Project Lazarus | NDRS Presentation (BofA)

Appendix

Page 21: Project Lazarus | NDRS Presentation (BofA)

Corporate culture

Strong culture oriented to people

development and delivery of results

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Stimulate people's development for an even better society.

FOCUS ON

RESULTS

WIZ PURPOSE

OUR ATTITUDES

OUR PRIZES

WORK AS A

TEAM

USE THE

METHODS, VALUE

THE SIMPLE

BE PERSISTENT

AND RESILIENT

REALIZE, LEARN,

IM PROVE, BUT

TRY

WIZZER IS IN LOVE

WITH WIZ

EMPLOYEE VALUE PROPOSITION

We bring different

people together to

develop

and achieve amazing

results, be whatever

challenge it is.

Talented people

deserve to fly high.

Is Wiz for you?

We show the strength

of diversity and the

importance of

connection.

BRING DIFFERENT

PEOPLE TOGETHER

It's our purpose,

it is our reason to

invest in people.

DEVELOPMENT

Show us that

we adapt, we offer

multiple experiences.

Resilience is with

Wiz.

MAY COME WHATEVER

CHALLENGE

We only believe in

what we do if we are

allied to the

effectiveness and

delivery.

ACHIEVE

RESULTS

We are a company

that gives opportunity,

recognizes and

defend meritocracy.

DESERVE TO FLY

HIGH

1 2

3 5

4