project lazarus | ndrs presentation (bofa)
TRANSCRIPT
INVESTORS PRESENTATIONAUGUST 2021
2
Disclaimer
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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.
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.
5
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.
6
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
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.
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
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
10
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)
11
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
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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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
14
The inorganic growth strategy involves identifying
profitable opportunities in new counters
14
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.
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
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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
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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
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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
Website: www.ri.wizsolucoes.com.br
E-mail: [email protected]
Phone: +55 (11) 3080-0100
Investor Relations
Thank You!
20
Appendix
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