Breakfast with Equities Bancolombia – Tables & Graphics Economic, Industry and Market Research March 12, 2021 Breakfast with Bancolombia

Equity Market

COLCAP Index Performance LATAM Markets Performance*

1,800 YTD 1 YR INDEX Close 1 Day YTD 1 YR 1,700 USD USD 1,600 1,500 COLCAP 1,350 0.2% -6.1% -9.8% 4.2% 14.1% 1,400 1,300 BOVESPA 114,984 2.0% -3.5% -9.4% 22.3% 17.4% 1,200 IPSA 4,881 -0.2% 16.9% 16.3% 22.7% 44.6% 1,100 1,000 SPBLPGPT 22,739 0.2% 9.2% 7.0% 27.9% 26.7% 900 800 Mar-19 Jul-19 Nov-19 Mar-20 Jul-20 Nov-20 Mar-21 MEXBOL 47,674 0.3% 8.1% 4.4% 23.3% 27.9%

Source: Grupo Bancolombia, Thomson Reuters Source: Grupo Bancolombia, Thomson Reuters *To last night’s closing level

Colcap vs Andean Region Colcap vs Bovespa & Mexbol

Colcap Mexbol (Mexico) Bovespa (Brasil) Colcap IPSA (Chile) SPBLPGPT (Peru) 140 150 130 140 120 130 110 120 110 100 100 90 90 80 80 70 70 60 60 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21

Source: Grupo Bancolombia, Thomson Reuters Source: Grupo Bancolombia, Thomson Reuters

COLCAP Best Performers* COLCAP Worst Performers*

Equity Closing Price Daily Variation Equity Closing Price Daily Variation

Celsia 4,799 1.70% ETB 218 -2.20% Bancolombia PF 30,740 1.45% Cementos Argos PF 4,150 -0.93% 12,940 1.25% ISA 23,600 -0.84% PF 1,172 1.03% Grupo Argos PF 9,810 -0.76% Cementos Argos 5,500 0.92% GEB 2,545 -0.62% Source: Grupo Bancolombia, Thomson Reuters Source: Grupo Bancolombia, Thomson Reuters *To last night’s closing level *To last night’s closing level Breakfast with Bancolombia Equity Market REPOS and Total Shares Outstanding of the Balance in REPOS on Local Shares Underlying Stock

1,800 Number of Shares in Shares Equity % 1,600 Repos Outstanding 1,400 PFAVAL 48,450,340 7,143,227,185 0.7% 1,200 CORFICOLCF 2,042,814 306,642,525 0.7% GRUPOARGOS 2,487,285 645,400,000 0.4% 1,000 CEMARGOS 3,712,427 1,151,672,310 0.3% 800 NUTRESA 1,060,445 460,123,458 0.2% 600

PFBCOLOM 956,831 452,122,416 0.2% Billions Billions COP 400 GRUPOSURA 764,531 469,037,260 0.2% 200 CELSIA 1,524,274 1,069,972,554 0.1% 0 GEB 4,308,301 9,181,177,017 0.0% Mar-11 Mar-13 Mar-15 Mar-17 Mar-19 Mar-21 BCOLOMBIA 219,503 509,704,584 0.0%

Source: Grupo Bancolombia, BVC Source: Grupo Bancolombia, BVC

Our Coverage Universe 2021 Target Price Expected* Expected Total Equity 11-Mar Last review Dividend Dividend Recommendation Base Var (%) Return 2021E Yield

COLCAP 1,350 Nov-20 1,490 10.3% 3.2%

Bogotá $ 78,180 Nov-20 $ 90,700 16.0% $ 3,336 4.3% 20.3% Overweight Canacol $ 10,350 Nov-20 $ 16,400 58.5% $ 547 5.3% 63.7% Speculative Overweight Celsia $ 4,799 Nov-20 $ 5,310 10.6% $ 262 5.5% 16.1% Market-weight Cemargos $ 5,500 Nov-20 $ 7,000 27.3% $ 128 2.3% 29.6% Overweight CLH $ 3,812 Feb-21 $ 7,950 108.6% $ - 0.0% 108.6% Overweight Conconcreto $ 480 Nov-20 N.A N.A $ - N.A N.A Under Review Corficol $ 32,370 Dec-20 $ 32,400 0.1% $ 2,042 6.3% 6.4% Underweight $ 31,200 Nov-20 $ 31,500 1.0% $ 321 1.0% 2.0% Underweight $ 2,368 Feb-21 $ 2,580 9.0% $ 17 0.7% 9.7% Overweight El Cóndor $ 1,080.00 Nov-20 $ 3,410 215.7% $ 24 2.2% 218.0% Overweight ENKA $ 14 Nov-20 $ 25 77.6% $ - 0.0% 77.6% Overweight ETB $ 218 Nov-20 $ 350 60.5% $ - 0.0% 60.5% Speculative Overweight GEB $ 2,545 Nov-20 $ 2,500 -1.8% $ 178 7.0% 5.2% Underweight Grupo Argos $ 12,940 Nov-20 $ 16,500 27.5% $ 382 3.0% 30.5% Overweight Grupo Aval $ 1,160 Nov-20 $ 1,270 9.5% $ 54 4.7% 14.1% Market-weight ISA $ 23,600 Nov-20 $ 23,250 -1.5% $ 1,303 5.5% 4.0% Underweight Nutresa $ 23,600 Nov-20 $ 31,600 33.9% $ 702 3.0% 36.9% Overweight Promigas $ 7,800 nov.-20 $ 7,700 -1.3% $ 462 5.9% 4.6% Underweight Terpel $ 7,800 Nov-20 $ 11,470 47.1% $ - 0.0% 47.1% Overweight Source: Grupo Bancolombia, Thomson Reuters Breakfast with Bancolombia Local Equity Market

Performance Multiples Closing Mkt Cap Volume % 1 YR ADTV Index/Stock Price PE (x) EV/EBITDA (x) (US$ mn) (US$) Volume 12 52 Weeks 52 Weeks (US$) (COP) 1 Day YTD Months Min Max 2021E 2022E 2021E 2022E COLCAP 1,350 81,980 - - 0.2% -6.1% 4.2% 880.7 1,468.2 - Bancolombia 30,160 8,237 784,878 3.4% 0.1% -13.8% 0.9% 17,700 35,800 28.7x 15.5x N.A. N.A. 2,055,353 Bancolombia PF 30,740 8,237 2,980,038 12.8% 1.5% -12.4% -4.8% 17,760 35,700 28.7x 15.5x N.A. N.A. 6,600,547 Banco de Bogota* 78,180 7,288 39,960 0.2% 0.0% 3.4% -4.7% 58,000 83,400 9.7x 10.2x N.A. N.A. 214,740 BVC 12,120 206 78,627 0.3% 0.2% 2.0% 21.3% 8,000 12,870 9.6x 17.2x 6.9x 7.6x 116,531 Canacol* 10,350 520 261,152 1.1% 0.9% -0.5% -4.2% 7,810 11,490 8.8x 8.9x 4.0x 3.6x 511,185 Celsia* 4,799 1,445 308,566 1.3% 1.7% 1.3% 9.7% 3,450 4,899 20.7x 17.9x 7.9x 7.6x 259,669 Cementos Argos* 5,500 2,027 294,830 1.3% 0.9% -11.0% 24.2% 2,415 6,275 31.6x 22.5x 7.8x 7.3x 671,390 Cementos Argos PF* 4,150 2,027 24,090 0.1% -0.9% -7.8% -1.0% 2,220 4,690 31.6x 22.5x 7.8x 7.3x 81,990 Corficol* 32,370 2,920 30,149 0.1% 0.5% -0.1% 10.0% 19,600 33,000 6.5x 7.1x N.A. N.A. 525,761 Corficol PF* 25,820 2,920 9,531 0.0% 0.4% -1.4% 5.4% 19,500 27,600 6.5x 7.1x N.A. N.A. 161,812 Davivienda PF* 31,200 948 4,247,460 18.3% 0.3% -14.3% -7.4% 22,040 37,400 8.1x 7.2x N.A. N.A. 1,006,910 Ecopetrol* 2,368 27,400 5,969,844 25.7% -0.2% 5.5% 6.2% 1,300 2,491 11.6x 10.7x 6.0x 5.4x 6,152,701 ETB* 218 218 32,635 0.1% -2.2% 0.5% -0.9% 169 248 -12.7x -14.4x 1.6x 1.9x 55,606 GEB* 2,545 6,576 730,229 3.1% -0.6% -4.0% 15.2% 1,745 2,890 11.8x 10.9x 11.3x 10.5x 1,207,529 Éxito 13,570 1,709 704 0.0% 0.0% -2.3% -11.2% 9,800 16,700 26.2x 13.3x 6.5x 2.4x 59,875 Grupo Aval PF* 1,172 7,298 1,506,361 6.5% 1.0% -1.8% -3.1% 700 1,210 9.4x N.A. N.A. N.A. 2,607,503 Grupo Sura 22,440 3,591 1,848,806 7.9% -0.3% -11.2% -7.3% 14,900 26,470 45.4x 7.9x 12.2x 13.4x 1,681,979 Grupo Sura PF 19,800 3,591 1,170,473 5.0% 0.0% -10.0% -8.7% 10,920 22,650 45.4x 7.9x 12.2x 13.4x 454,329 Grupo Argos* 12,940 2,935 69,563 0.3% 1.3% -6.9% -2.7% 7,000 14,500 20.7x 14.9x N.A. N.A. 1,220,082 Grupo Argos PF* 9,810 2,935 54,533 0.2% -0.8% -6.6% -11.8% 5,500 11,000 20.7x 14.9x N.A. N.A. 122,197 ISA* 23,600 7,356 1,523,516 6.5% -0.8% -8.2% 38.8% 11,000 29,250 13.7x 13.4x 9.2x 9.1x 2,212,945 Nutresa* 23,600 3,056 234,086 1.0% 0.4% -1.7% 7.3% 16,800 25,000 16.7x 15.2x 8.9x 8.2x 906,598 Promigas* 7,800 2,491 296 0.0% 0.0% -7.1% -0.6% 6,500 8,400 10.2x 9.4x 11.4x 10.3x 109,421 Mineros 4,150 306 39,652 0.2% -0.2% -0.4% 32.0% 2,170 4,485 3.0x 3.0x 1.7x 1.7x 133,210 Terpel* 7,800 398 18,321 0.1% 0.0% -9.3% -21.6% 6,300 9,160 6.2x 3.7x 5.0x 3.7x 74,620 Non-index: CLH* 3,812 2,130,361 128 0.2% 0.0% -17.7% 16.0% 1,360 5,090 13.2x 7.1x 6.6x 5.6x 322,005 Conconcreto 480 153 14 0.0% 0.0% 9.3% 22.8% 302 543 23.5x N.A. 25.8x N.A. 57,102 Grupo Aval* 1,160 7,298 30,362 0.1% 0.0% 0.4% -3.3% 863 1,300 9.4x N.A. N.A. N.A. 12,967 El Cóndor* 1,080 175 26,477 0.1% 4.8% -9.9% -11.5% 870 1,214 6.1x 10.7x 14.6x 17.2x 14,531 Enka* 14 47 1,260 0.0% 0.0% 21.7% 43.0% 7 15 6.2x 3.3x 2.8x 2.7x 8,041 HCOLSEL 12,748 435 547,597 2.4% 1.0% -6.8% 6.7% 8,288 13,820 N.A. N.A. N.A. N.A. 670,015 Fabricato 5 12 377 0.0% 0.0% -0.9% -2.1% 4 6 6.7x N.A. 4.5x N.A. 1,888 PF 165 16 3,060 0.0% 0.0% -17.1% -86.4% 30 1,150 N.A. N.A. 9.2x 4.9x 94,877 *Stocks under coverage *P/E and EV/EBITDA estimated by Bancolombia Source: Grupo Bancolombia, Thomson Reuters Breakfast with Bancolombia Colcap

The Colombian stock index traded on the upside in a new day of rallies for international equities due to renewed optimism after the approval of the stimulus plan in the US and a moderation in the behavior of the yields of Treasury bonds. It was, however, a day of low transactional dynamism.

The Colcap advanced 0.21%, to 1,350.35 points, consolidating a YTD loss of 6.09% in local currency and 9.54% in USD. The session traded USD23.2 mn, with a concentration of 9.4% in the closing auction, while ETF trades represented 4.24% of the open market volume. The largest volume purchases were made in GRUPOSURA and PFGRUPSURA.

Best Performers Worst Performers CELSIA (1.70%) ETB (-2.20%) PFBCOLOM (1.45%) PFCEMARGOS (-0.93%) GRUPOARGOS (1.25%) ISA (-0.84%)

1,350.35 points +0.21%

Volume USD23.2 mn

YTD COP -6.09%

YTD USD -9.54%

News

Grupo Aval: 4Q20 Results Mitigated by Good Performance of Non-Financial Business Marketweight - TP COP1,270 Although Grupo Aval’s 4Q20 results are negative, in our opinion, they are the least negative within the financial sector, thanks to the resilience of the non-financial business (through ), which helped mitigate the high expense in provisions, achieving a much more moderate contraction in net income and maintaining a double-digit ROE.

GEB - 4Q20 Results Outstanding Performance Across All Businesses Underweight - TP COP2,500 GEB’s 4Q20 results were outstanding, showing growth compared to 4Q19 in revenues, EBITDA, and net income, which is outstanding when considering the context of the Covid-19 pandemic. At the business level, 4Q20 figures were above our expectations, mainly due to better performance by TGI and Emgesa. It is worth highlighting the performance of GEB and its businesses in Q4 and FY2020 attributable to what we have called the pandemic resistance formula: diversification + regulated businesses + USD exposure. Net income was driven by a surprise in the exchange difference item that went from an income of COP19.7 bn in 4Q19 to one of COP250.9 bn in 4Q20 due to the exchange rate variation effect during the quarter on liabilities in foreign currency.

Finally, the increase in the proposed dividend for 2021 of 27% YoY to COP178/share stands out, which at market prices offers an attractive return of 7%. Precisely because of this attribute, we believe that the share price can be sustained given the current market conditions, even though the share price exceeds our target price. Breakfast with Bancolombia

Sovereign Bonds & FX Market

FX Performance – USD/COP and USD/BRL Fixed Income – TES Yield Curve (%)

4-Mar-21 11-Mar-21 USDCOP USDBRL 4,000 6.20 6.80% 6.58% 6.00 6.40% 6.27% 3,900 5.54 6.57% 5.80 6.00% 5.68% 6.24% 3,800 5.60 5.60% 5.63% 3,700 5.40 5.20% 4.89% 5.20 3,600 4.80% 5.00 4.40% 4.95% 3,500 4.80 4.00% 3.80% 3,400 4.60 3.60% 3,554 3.62% 4.40 3.20% 3,300 4.20 2.80% 4.00 3,200 2.40% 2.07% 3.80 3,100 3.60 2.00% 1.90%

3,000 3.40 1.60%

Jul-24

Apr-28

Jun-32

Aug-26 Sep-30

Var bp May-22

7-Jan

4-Mar

4-Feb

5-Nov

3-Dec

22-Oct

29-Oct

14-Jan

21-Jan

28-Jan

11-Feb

18-Feb

25-Feb

11-Mar

12-Nov

19-Nov

26-Nov

10-Dec

17-Dec 24-Dec 31-Dec -17 -18 -6 5 3 1

Source: Grupo Bancolombia, Thomson Reuters Source: Grupo Bancolombia, Thomson Reuters

Commodity Prices by Category (Base 100, 12 months) Commodity Prices by Category (var%)

Units 11-Mar-21 Daily YTD Agricultural Precious Metals Reference Index Industrial Metals Energy 150 CRB Index unit 194.5 1.5% 15.9% Energy 140 WTI US$/bbl 66.0 2.5% 36.1% 130 Brent US$/bbl 69.6 2.4% 34.3% 120 Coal US$/tn 89.0 0.0% 10.6% 110 Industrial Metals 100 Copper US$/lb 4.1 2.5% 17.9% Precious Metals 90 Gold US$/oz 1722.3 0.0% -9.0% 80 Silver US$/oz 26.2 0.2% -0.6% 70 Agriculture 60 Arabica Coffee cent US$/lb 131.8 1.9% 2.8% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Wheat cent US$/bu 636.3 -2.2% -0.7% Corn cent US$/bu 555.0 1.3% 14.7% Sugar US$/lb 16.4 2.5% 5.6% Source: Grupo Bancolombia, Thomson Reuters Source: Grupo Bancolombia, Thomson Reuters Economic, Industry and Market Research Juan Pablo Espinosa Arango Chief Economist and Head of Economic, Industry and Market Research [email protected]

Economic Research Industry Research Equity Research Arturo Yesid González Peña Jhon Fredy Escobar Posada Jairo Julián Agudelo Restrepo Quantitative Specialist Head of Agroindustry Research Head of Equity Research [email protected] [email protected] [email protected]

Juan Camilo Meneses Cortes Nicolás Pineda Bernal Diego Alexander Buitrago Aguilar Macroeconomic Specialist Head of Commerce Research Energy Analyst [email protected] [email protected] [email protected]

Juan Manuel Pacheco Perez Juan Sebastián Neira Orozco Andrea Atuesta Meza International and Markets Analyst Commerce Industry Analyst Financial Sector Analyst [email protected] [email protected] [email protected]

Paolo Betancur Montoya Santiago Espitia Pinzón Agroindustry Analyst Juliana Aguilar Vargas, CFA Macroeconomic Analyst [email protected] Cement & Infrastructure Analyst [email protected] [email protected] Javier David Villegas Bryan Hurtado Campuzano Real Estate and Hotels Analyst Ricardo Andrés Sandoval Carrera International and Regional Analyst [email protected] Oil & Gas & Airlines Analyst [email protected] [email protected] Valentina Gómez Garzón Commerce Sector Analyst Deiby Alejandro Rojas Cano [email protected] Valentina Martínez Jaramillo Macroindustry Analyst Consumer & Industry Analyst [email protected] Juan Esteban Echeverri Agudelo [email protected] Administrative Assistant [email protected] Julian Andrés Gómez Quintero Andrés Uribe Rendón Junior Analyst Intern José Manuel Lopera Molina [email protected] [email protected] Intern [email protected] Jairo Andrés Burgos Guerra Intern Research Assistant [email protected] Alejandro Quiceno Rendón Research Editor [email protected] Terms of use This report has been prepared by Analysis Bancolombia a research and analysis department at Grupo Bancolombia. It shall not to be distributed, copied, sold, or altered in any way without the express permission of Grupo Bancolombia, nor be used for any purpose other than to serve as background material which does not constitute an offer, advice, recommendation, or suggestion by Grupo Bancolombia for making investment decisions or conducting any transactions or business. The use of the information provided is solely the responsibility of the recipient.

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The information and opinions in this research report constitute a judgment as of the date indicated and are subject to change without notice. The information may therefore not be accurate or current. Future projections, estimates, and forecasts are subject to several risks and uncertainties that prevent us from ensuring that they will prove correct or accurate, or that the information, interpretations, and knowledge on which they are based will be valid. In that sense, actual results may substantially differ from the forward-looking statements contained here. You should be aware of the fact that investments in securities or other financial instruments involve risks. Past results do not guarantee future performance.

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As regards to conflicts of interest, we declare that (i) Valores Bancolombia S.A. Comisionista de Bolsa and/or Banca de Inversión Bancolombia S.A. Corporación Financiera have participated in structuring or underwriting/placing equity securities for Bancolombia S.A., (ii) Grupo Bancolombia is the beneficial owner of 10% or more of the shares issued by Valores Simesa S.A., and Proteccion S.A., (iii) Bancolombia is one of the biggest shareholders of Fondo Inmobiliario – FIC, and (iv) Valores Bancolombia S.A. Comisionista de Bolsa is a wholly owned subsidiary of Bancolombia S.A. Nevertheless, it has been prepared by our Analysis Bancolombia department team based on strict internal policies that require from us objectivity and neutrality, as well as independence from our areas of brokerage and investment banking.

The information contained in this report is not based, does not include nor has been structured based on privileged or confidential information. Any opinions or projections contained herein are solely attributable to the author and have been prepared independently and autonomously in the light of the information available at the time.

The content of this message does not constitute a professional recommendation to make investments according to the terms of article 2.39.1.1.2 of the Decree 2555 of 2010 or the regulations that modify, replace or complement it.

Rating System The investment recommendation on the issuers under coverage by Analysis Bancolombia is governed by the rating system presented below, subject to the following criteria:

The upside potential is the percentage difference between the target price of securities issued by a particular issuer and their market price. The target price is not a forecast of the price of a stock, but a fundamental independent valuation made by Analysis Bancolombia, which seeks to reflect the fair price the market should pay for the shares on a given date.

Based on an analysis of the relative upside potential amongst the securities of companies under coverage and the COLCAP index, the ratings of the assets are determined as follows:

Overweight: when the upside potential of a stock exceeds by 5% or more the return potential of the COLCAP index. Market Weight: when the upside potential of a stock does not differ by more than 5% from the return potential of the COLCAP index. Underweight: when the upside potential of a stock is 5% or more below the return potential of the COLCAP index. Under Review: the company’s coverage is under review and therefore there’s no rating or target price.

Additionally, at the discretion of the analyst, the speculative qualification that complements the recommendation will continue to be used, taking into account the risks seen in the performance of the asset, its future development and the volatility the movement of the stock may show.

The fundamental potential of the index is determined based on the methodology established by the BVC for the calculation of the COLCAP index, considering the target prices published by Analysis Bancolombia. This will be made with the Colcap basket on the dates of calculation May and November of every year. For the companies part of the index but not covered, the consensus of market analysts will be used.

Currently, Analysis Bancolombia has 18 companies under coverage, distributed as follows:

Overweight Market Weight Underweight Under Review Number of issuers with ratings of: 11 2 5 1 Percentage of issuers with ratings of: 58% 11% 26% 5%