MANAGEMENT PRESENTATION

Table of ContentsTable of Contents

1. Overview1. Overview 3. Mandatory Pension 3. Mandatory Pension 4. Voluntary Product4. Voluntary Product5. Severance Funds 5. Severance Funds

6. Investment Management (IM)6. Investment Management (IM)

2. Strategy2. Strategy

8. Main Challenges8. Main Challenges

7. Financial Information7. Financial Information

9. Appendix9. Appendix

AFP SHAREHOLDERS

• Grupo de Inversiones Suramericana S.A 48.35%• Bancolombia S.A. 24.64%, • Colsubsidio 18.54%, • Other 112 shareholders 8.46%

• Grupo AVAL (20%)• Banco de Bogotá (35.28%)• Banco de Occidente(23.10%)• Fiduciaria Bogotá y Fiduciaria de Occidente

• Grupo BBVA 99,95%

• In process of acquisition by GRUPOSURA

• Grupo Colpatria PE unit• Palmfund PE• Linzor Capital

• Part of Old Mutual Group

OverviewOverview

More than 1.700 employees working for the Future Economic Security of more than 2.600.000 affiliates in Colombia.

No. 1 in Satisfaction levels for affiliates and employers in 2010

•82,9 %Affiliates•82,6 % Employers

• No. 1 Historical Returns. Real return of 10,63% / year• No. 2 Market Share in AUM, US$ 15,7 BN

• AAA Rating in Funds, M1 as Mangers of Investment Assets• ISO 9001 Version 2000 Certified

Acquisition of AFP CRECER (El Salvador) – Est. process finished by August 2011

•360 Employees•US$ 2,5 BN in AUM•53% Market Share with 1.000.000 + affiliates•No. 1 Historical Returns and Customer Satisfaction

PROTECCION COLOMBIA

OverviewOverview

MANDATORY PENSION FUNDS:

• AUM:• Affiliates:• Historical Returns:• 3 Years:

Ranked # 2Ranked # 2Ranked # 1Ranked # 1

25,5 % Market Share.21 % Market Share.20,62 % Per year.15,75% Per year.

$US 13,353 Million (Sep 11)2,0 Million Affiliates (Feb-11)10,63% Real11,23% Real

SEVERANCE FUNDS:

• AUM:• Affiliates:• Collection 2011:• Historical Returns:

Ranked # 2Ranked # 3Ranked # 2Ranked # 2

26,1 % Market Share.20 % Market Share.28 % Market Share.14,69 % Per year.

$US 822 Million (Sep 11)1,2 Million Affiliates (Feb-11)$US 407 Million (Jan–Feb 11)5,19 % Real

VOLUNTARY FUNDS:

• AUM:• Affiliates:

Ranked # 2Ranked # 1

30,8 % Market Share.31 % Market Share.

$US 1,529 Million (Sep 11)116,054 Affiliates (Feb 11)

Organizational StructureOrganizational StructureBOARD OF DIRECTORS

RISK COMMITTEE AUDIT COMMITTEE

SOCIAL RESPONSIBILITY COMMITTEE

MANAGEMENT AND GOVERNANCE COMMITTEE

EXECUTIVE PRESIDENT

AUDIT DEPARTMENT

CHIEF MARKETING OFFICER

CHIEF ADMINISTRATIVE AND HR OFFICER

CHIEF OPERATIONS OFFICER

CHIEF FINANCIAL OFFICER

CHIEF COMMERCIAL OFFICER

CHIEF PLANNING, AND RISK MANAGEMENT CHIEF IT OFFICER CHIEF LEGAL OFFICER

Antioquia Regional Manager

Bogotá Regional Manager

Bogotá Central Regional Manager

Caribe Regional Manager

Occidente Regional Manager

Employees 1739 100%Administrative and Operational 608 35%Commercial 1063 61%Aprentices and trainees 68 4% DIRECCION GENERAL 398 23%Bogotá Regional 316 18%Bogotá Central Regional 290 17%Antioquia Regional 330 19%Occidente Regional 242 14%Caribe Regional 163 9%

• 5 Regional Offices

• 27 Cities

• 26 Sales Offices

• 17 Customer Service Branches

• 18 Multi Activity Offices

Marketing StrategyMarketing Strategy

PRODUCTS

I. FOR INDIVIDUALS: Mandatory Pensions

Severance Fund

Voluntary Savings

II. FOR COMAPANIES: Mandatory DC Corporate and State

Companies Plans

Mandatory Severance Funds for State Companies

Our Mission:To be allied with our affiliates and employers in the construction of their future financial security through a comprehensive range

of funds, insurance and financial services, adapted to their life cycle needs.

DISTRIBUTION CHANNELS

I. INTERNAL (FTE)

Specialized Channels for different segments of individuals/employers.

Corporate

State Owned Companies and Government.

Medium Size Companies

Small Size Companies and Independent Individuals.

Big Labor Outsourcers

II. EXTERNALBrokers

Agents

III. VIRTUAL & SERVICE CHANNELSProtección Branches

Contact Center

Web Services

ALLIANCES AND SYNERGIES

I. INSURANCE (w/Suramericana) Complementary D&S Insurance

(Protección Vida)

II. CREDIT (w/ Bancolombia) Loans to employers for Severance

Collection.

Loans to individuals with savings as Collateral

III. OPERATIONAL IT and Operational alliances with

Suramericana, Grupo Bancolombia and Enlace Operativo to improve Operational effectiveness.

SegmentationSegmentation

AFFILIATES EMPLOYERS20

- 35

35 -

4545

- 65

65 +

LIFE CYCLE

VALU

E

CORPORATEMEDIUMMICRO

GOVERNMENTOUTSOURCING

TYPE

Benefits of Segmentation:•Specialized Product Offer•Increased Coverage of Clients•Agents Profiles and compensation adjusted to market segments

VIP

VALUE

ENTREPRENEUR

Customer SegmentationCustomer Segmentation

  CORPORATE PUBLIC OUTSNG. MEDIUM MICRO TOTAL  

EMPLOYERS (M) No. Companies 3.1 3.0 11.7 36.6 326.8 381.3 Part (%). 0.8% 0.8% 3.1% 9.6% 85.7% 100.0%

               AFFILIATES (M) VIP 14.3 3.4 1.1 6.4 7.2 32.3 1.2% Value 14.1 3.1 1.2 5.9 4.7 29.0 1.1% Entrepreneur 465.7 53.2 369.9 407.0 1,255.8 2,552.1 97.7% Total 494.0 59.7 372.2 419.3 1,267.7 2,613.4 100% Part.(%) 18.9% 2.3% 14.2% 16.0% 48.5% 100.0%  

               REVENUES (US$MM) VIP $16.4 $3.6 $2.2 $7.7 $9.8 $40.6 26.0% Value $7.0 $1.6 $1.0 $3.0 $1.8 $14.5 9.3% Entrepreneur $39.4 $5.1 $17.5 $24.2 $12.8 $100.0 64.1% Total $62.8 $10.2 $20.7 $35.0 $24.4 $156.1 100% Part.(%) 40.2% 6.5% 13.3% 22.4% 15.6% 100.0%  

7,268

10,049

12,823 13,354

38.3%

27.6%

4.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

-

2000.0

4000.0

6000.0

8000.0

10000.0

12000.0

14000.0

16000.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM & Var.

Mandatory Pension Mandatory Pension

SYSTEM: AUM

Market Share AUMPROTECCIÓN: AUM

USD Millones

27.4% 26.7% 27.4% 27.8%

24.7% 25.7% 25.6% 25.5%

16.8% 16.4% 16.0% 15.8%14.4% 14.4% 14.3% 14.2%

11.9% 11.8% 11.6% 11.6%

4.8% 5.0% 5.1% 5.2%0%

5%

10%

15%

20%

25%

30%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion HorizonteColfondos ING Skandia

1 USD = 1.915 COP

System: Market Share Affiliates: 2,082,194System: Market Share Mandatory Collection

29.8%31.3% 31.8% 32.4%

23.8% 23.3% 22.9% 23.7%

16.4% 16.0% 15.9% 15.4%14.3% 13.8% 14.2% 13.8%

11.9% 11.6% 11.3% 10.7%

3.8% 4.0% 3.9% 4.1%0%

5%

10%

15%

20%

25%

30%

35%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion HorizonteColfondos ING Skandia

Mandatory Pension:Mandatory Pension: Proteccion + INGProteccion + ING

1 USD = 1.915 COP

10,753

14,675

18,658 19,453

36.5%27.1%

4.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

-

5000.0

10000.0

15000.0

20000.0

25000.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM & Var.

PROTECCIÓN + ING: AUM

USD Millones

27.4% 26.7% 27.4% 27.8%36.6% 37.5% 37.2% 37.1%

16.8% 16.4% 16.0% 15.8%14.4% 14.4% 14.3% 14.2%

4.8% 5.0% 5.1% 5.2%0%

5%

10%

15%

20%

25%

30%

35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion+ING HorizonteColfondos Skandia

Market Share AUM

System: Market Share Mandatory Collection System: Market Share Affiliates: 3,140,550

29.8% 31.3% 31.8% 32.4%

35.7% 34.9% 34.2% 34.3%

16.4% 16.0% 15.9% 15.4%14.3% 13.8% 14.2% 13.8%

3.8% 4.0% 3.9% 4.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion+ING HorizonteColfondos Skandia

15.7% 15.9% 16.1% 16.3%

19.0% 18.4% 18.2% 17.7%

29.1%30.1% 30.7% 31.8%

35.4% 34.7% 34.2% 33.4%

0.9% 0.9% 0.8% 0.8%0%

5%

10%

15%

20%

25%

30%

35%

40%

Feb_2008 Feb_2009 Feb_2010 Feb_2011Colfondos Horizonte PorvenirProteccion+ING Skandia

PROTECCIÓN: AUM Market Share AUM

USD Millones

Voluntary Product Voluntary Product

955.51,166.5

1,418.61,529.7

22.1% 21.6%

7.8%

0%5%10%15%20%25%30%35%40%45%50%

- 200.0 400.0 600.0 800.0

1000.0 1200.0 1400.0 1600.0 1800.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM % Var.

36.9% 36.6% 36.5% 36.7%

29.1% 29.9% 30.0% 30.8%

19.7% 18.9% 19.1% 18.7%

3.2% 4.1%

5.1% 5.0%5.6%4.9%

4.5%4.5%5.5%

5.6%4.7%

4.3%0%

5%

10%

15%

20%

25%

30%

35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Skandia Proteccion PorvenirING Colfondos Horizonte

1 USD = 1.915 COP

Market Share AffiliatesPROTECCIÓN: Affiliates

99,423 104,956112,491

122,107

5.6%7.2%

8.5%

0%

2%

4%

6%

8%

10%

12%

14%

-

20000.0

40000.0

60000.0

80000.0

100000.0

120000.0

140000.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

Affiliates % Var.

PROTECCIÓN: AUM Market Share AUM

USD Millones

Voluntary Product: Voluntary Product: Proteccion + ING Proteccion + ING

1 USD = 1.915 COP

Market Share Affiliates

1,060.5

1,325.6

1,661.71,780.1

25.0% 25.4%

7.1%

0%5%10%15%20%25%30%35%40%45%50%

- 200.0 400.0 600.0 800.0

1000.0 1200.0 1400.0 1600.0 1800.0 2000.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM % Var.

36.9% 36.6% 36.5% 36.7%

32.3% 34.0% 35.1% 35.9%

19.7% 18.9% 19.1% 18.7%

5.6%

4.9% 4.5%

4.5%

5.5%

5.6% 4.7%

4.3%0%

5%

10%

15%

20%

25%

30%

35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Skandia Proteccion+ING PorvenirColfondos Horizonte

16.4% 17.2%

10.7% 10.6%12.9% 12.4%

13.4%12.2%

23.2%20.6% 22.3% 22.9%

32.3%34.5% 35.9% 36.3%

15.1%15.2%

17.7% 18.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Feb_2008 Feb_2009 Feb_2010 Feb_2011Colfondos Horizonte PorvenirProteccion+ING Skandia

PROTECCIÓN + ING: Affiliates

112,885 119,771 126,196136,611

6.1%5.4%

8.3%

0%

2%

4%

6%

8%

10%

12%

14%

-

20000.0

40000.0

60000.0

80000.0

100000.0

120000.0

140000.0

160000.0

Feb_2008 Feb_2009 Feb_2010 Feb_2011

Affiliates % Var.

Market Share AUMPROTECCIÓN: AUM

USD Millones

Severance FundsSeverance Funds

537.1

670.4

798.5 822.4

24.8%19.1%

3.0%

0%

10%

20%

30%

40%

50%

60%

70%

- 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM % Var.

31.4% 32.0% 32.8% 33.4%

24.4% 25.4% 25.7% 26.1%

18.8% 17.8% 17.1% 16.6%12.4% 12.4% 12.3% 11.8%

10.7% 10.1% 10.0% 9.9%2.2% 2.2% 2.2% 2.2%0%

5%

10%

15%

20%

25%

30%

35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion HorizonteING Colfondos Skandia

1 USD = 1.915 COP

Market Share AffiliatesPROTECCIÓN: Affiliates

970,0751,053,267 1,034,433

1,114,222

8.6%

-1.8%

7.7%

-10%

0%

10%

20%

-

250000.0

500000.0

750000.0

1000000.0

1250000.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

Affiliates % Var.

810.0

998.3

1,179.9 1,193.0

23.2%18.2%

1.1%0%

10%

20%

30%

40%

50%

60%

70%

-

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

Sep_2008 Sep_2009 Sep_2010 Sep_2011

AUM % Var.

Market Share AUMPROTECCIÓN: AUM

USD Millones

Severance Funds: Severance Funds: Proteccion + ING Proteccion + ING

1 USD = 1.915 COP

31.4% 32.0% 32.8% 33.4%

36.9% 37.9% 38.0% 37.9%

18.8% 17.8% 17.1% 16.6%

10.7% 10.1% 10.0% 9.9%

2.2% 2.2% 2.2% 2.2%0%5%

10%

15%

20%25%

30%35%

40%

Sep_2008 Sep_2009 Sep_2010 Sep_2011Porvenir Proteccion+ING HorizonteColfondos Skandia

1,749,319 1,859,290 1,938,490 1,886,157

6.3%4.3%

-2.7%

-10%

0%

10%

20%

- 250000.0 500000.0 750000.0

1000000.0 1250000.0 1500000.0 1750000.0 2000000.0 2250000.0

Feb_2008 Feb_2009 Feb_2010 Feb_2011

Affiliates % Var.

Market Share AffiliatesPROTECCIÓN: Affiliates

12.4% 12.7% 13.4%16.2%

21.1% 21.8% 22.9% 23.0%

30.8% 30.8% 29.6% 30.0%

34.9% 34.0% 33.4%30.2%

0.7% 0.7% 0.7% 0.6%00%

05%

10%

15%

20%

25%

30%

35%

40%

Feb_2008 Feb_2009 Feb_2010 Feb_2011Colfondos Horizonte PorvenirProteccion+ING Skandia

13.3%15.5%

12.1% 13.8% 14.2%

2.1%

4.1% 5.4%

19.6%

12.8%

-4.2%-10%

-5%

0%

5%

10%

15%

20%

25%

100120140160180200220240260280

Rentabilidad Anual Rentabilidad Indiciada

13.3%15.5%

12.1%13.8% 14.2%

2.1%4.1% 5.4%

19.6%

12.8%

-1.7% -5%

0%

5%

10%

15%

20%

25%

100120140160180200220240260280300

CES

Rentabilidad Anual Rentabilidad IndiciadaAnual Return Unit Price

18.54%22.36%

17.70%20.87%

27.92%

8.33% 6.50% 5.52%

30.27%

18.90%

-2.11% -5%0%5%10%15%20%25%30%35%

100150200250300350400450500

Rentabilidad Anual Rentabilidad Indiciada

Investment Performance

Mandatory Severance Fund - LT

Industry Returns – Mandatory Pensions Industry Returns – Severance Fund - LT

13.3%15.5%

12.1%13.8% 14.2%

2.1%4.1% 5.4%

19.6%

12.8%

-1.7% -5%

0%

5%

10%

15%

20%

25%

100120140160180200220240260280300

CES

Rentabilidad Anual Rentabilidad IndiciadaAnual Return Unit Price

Sumary Incomen Statemet 2008 2009 2010 Sep_2011 2011E 2012E 2013E 2014E 2015E CAGR '11 - 15'

Fee on Contributable Salary Base (3%) 141.2 173.7 197.7 164.4 229.4 241.1 259.5 277.9 296.2 8.49%Disability and Survivorship (D&S) 59.5 71.9 94.2 101.2 145.3 152.7 151.4 162.1 172.8 14.42%

Net Fee Income Mandatory Pension 81.7 101.8 103.5 63.2 84.1 88.4 108.1 115.8 123.4 4.47%Fee Income Severance Funds 21.2 27.8 22.7 18.5 27.1 29.8 32.8 36.1 39.8 11.99%Fee Income Voluntary Funds 17.7 22.2 29.1 23.9 33.7 37.8 42.8 48.5 54.5 13.38%

Total Revenues 125.0 162.5 165.4 110.0 155.2 167.0 195.0 211.8 229.3 7.01%

Opeating Expenses 87.6 116.9 123.2 86.2 133.1 142.2 145.4 145.7 151.8 4.30%

Operating Results 37.4 45.6 42.2 23.8 22.1 24.8 49.5 66.1 77.5 22.97%

Encaje Income 7.0 29.0 25.0 7.5 18.0 23.0 26.0 30.0 34.0 7.84%

Net Income 29.0 48.7 44.8 20.6 27.0 32.1 50.5 63.9 74.0 15.80%

29.0%25.3% 27.1%

35.7%40.7%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

2010 2011E 2012E 2013E 2014E

27.1%

17.4% 19.2%

25.9%30.2%

00%

05%

10%

15%

20%

25%

30%

35%

2010 2011E 2012E 2013E 2014E

Financial ResultsFinancial Results

Million USD

NET MARGIN EBITDA MARGIN

- Sep 2011 1 USD = 1,915 COP- 2011E-2015E 1 USD = 1.817 COP

Balance SheetBalance Sheet

ROE ROA

Million USDSep 2011 1 USD = 1,915 COP

Balance Sheet 2008 2009 2010 Sep_2011

AssetsCash 12.5 16.8 29.4 127.6Investmet 110.9 161.4 193.3 201.9Property and Equipment 20.1 23.3 23.1 21.7Others Assets 10.5 13.2 20.3 46.2Total Assets 154.0 214.7 266.1 397.3

LiabilitiesTax Retentions 4.9 13.8 10.6 13.7Othes Liabilities 27.1 28.3 25.6 33.5Total Liabilities 32.0 42.1 36.2 47.2

EquityShareholders Equity and Reserves 88.7 118.8 173.0 317.2Surplus 4.3 5.2 11.8 12.3Current Year Profits 29.0 48.7 44.8 20.6Total Equity 122.0 172.7 229.6 350.1

24.3%

11.2% 9.8%

14.3%16.1%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2010 2011E 2012E 2013E 2014E

16.8%

9.7%8.7%

12.7%14.3%

0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%

2010 2011E 2012E 2013E 2014E

Main ChallengesMain Challenges

D&S INSURANCE

Increased loss ratio in the last 3 years, due to:

•Social and demographic changes•Rulings from Courts that extended benefits and eligibility criteria•Change in Mortality Tables

Severe adverse impact in AFP income and profits. More than 60% of Total Fees dedicated to pay for D&S insurance

PENSION REFORM

The Colombian Pension System needs a structural reform to improve its overall performance .

•Competition within mandatory system between DC-AFPs (Private) and DB- ISS (Public) creates asymmetries and inefficiencies.•Public Pensions and ISS are becoming an unsustainable fiscal burden •A Social Pillar for the poorest group of the population is necessary to create a more equitable system (as Solidarity Pillar in Chile)

Operation of AFPs could be improved in areas like Administration Fees (from AUM instead of from collection), D&S insurance, minimum pension guarantees, where other countries have undertaken successful reforms.

CAPITAL REQUIREMENTS & SOLVENCY MARGIN

Capital requirements very high compared with other countries.

•Encaje – 1% of AUM in Mandatory Funds•Solvency Margin of 1/48 of AUM (Excluding Public Debt) and inducing conflicts of interest.•Need to introduce requirements based on Operational Risk