Equity Research

July 9th, 2019 Monthly Andean Strategy Update Our Andean strategy remains unchanged

In June, the Andean region posted a positive performance across the CREDICORP CAPITAL RESEARCH board in line with other LatAm markets. Chile, Peru and Colombia posted • 6.6%, 6.1% and 9.6% returns in USD terms (+1.9%, +3.5%, and +4.2% in local terms), respectively; LatAm posted a 6.0% return in USD terms. Daniel Velandia, CFA We maintain our Overweight recommendation for Chile; the +(571) 3394400 ext. 1505 performance in June was positive, but there is still a long way to go. [email protected] • We expect the economy to grow by slightly above 2% in 1H19, but we assume the return of close-to-potential growth rates starting in 2H19. Carolina Ratto • Cencosud’s real estate IPO has passed and Enel Am’s subscription +(562) 2446 1768 period started last week. Although we still have to wait for 30 more [email protected] days, the overhang should disappear starting in August. • June was a positive month for the index with a generalized recovery; Tomás Sanhueza however, it is still soft, and major impulse should come going into 2H19. +(562) 2446 1751 • Valuations remain discounted, even when stressing the earnings growth [email protected] of relevant sectors such as Pulp, Retail and Banks. This leads to a limited downside to current levels. Sebastián Gallego, CFA We maintain our Neutral position on Colombia. Positive news drove +(571) 3394400 ext. 1594 the Colombian market in June as the Senate rejected the proposal to [email protected] eliminate some banking fees and the reorganization of Casino’s assets benefited Exito. Daniel Córdova • The local index climbed 10.1% in USD terms (4.6% in local currency), +(511) 416 3333 Ext. 33052 compared to a 6.2% increase for the MSCI Latam.. [email protected] • We maintain a neutral to positive view on the macro front, and we reiterate our 3.3% GDP forecast for 2019E. That said, we acknowledge that fiscal uncertainties remain. • Forward multiples continue to look attractive. • We maintain key players of the banking system as part of our Top Picks. Operating/financial trends should remain constructive towards 2020, and we continue to expect ROAE expansion. Furthermore, the rejection of the proposal to eliminate some banking fees was positive in our view. • We maintain our bets on other key sectors (cement & construction and private consumption). • Accordingly, our top picks are Davivienda, Bancolombia, Cementos Argos and Nutresa. We maintain our Underweight recommendation for Peru as concerns about the deterioration of the external front and weak investment at home persist. • The US and China are giving trade negotiations another chance, providing at least short-term support for base metals prices. • Private consumption remains relatively strong, providing support to names such as InRetail and IFS. • Non-mining private investment is still subdued. Even though there have been some positive signs from public investment, we need to see a more consistent trend before we become more constructive on Peru. • From a medium-term strategy viewpoint, we favor utilities to avoid the IMPORTANT NOTICE (US FINRA RULE 2242) This document is intended for INSTITUTIONAL INVESTORS and is not subject to all of the independence and volatility of mining companies and high beta sectors. disclosure standards applicable to debt research reports prepared for retail investors. Credicorp Capital may do or seek to do business with companies • Based on solid company fundamentals and their respective industry’s covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. favorable dynamics, we maintain Ferreycorp and InRetail as our Top Investors should consider this report as only a single factor in making their Picks. investment decision. Refer to important disclosures on page 22 to 25, Analyst Certification on Page 22. Additional disclosures on page 25. 1 Actualizar Contents

Monthly Andean Strategy Update

Chile: Some green shoots during the month; still a long way to go 5 Top Picks 8 Colombia: Several positive surprises on the Colombian market during June 9 Top Picks 13 Peru: With market risks still looming, opportunities come down to specific names 13 Top Picks 15

Valuation Summary 17

Economic Forecasts 21

2 Actualizar LTM Andean Equities Performance (in USD)

IPSA COLCAP SP BVL General Index MSCI Latam 130

120

110

100

90

80

70 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19

Source: Credicorp Capital, & Bloomberg

Andean Equities Fwd P/E (12 month rolling) vs 5Y historical average

P/E FWD vs Historical 5Y Average

20.0x 30.0% 18.0x 15.0x 20.0% 16.0x 13.7x 14.6x 14.0x 10.0% 12.0x 10.0x 0.0% 8.0x 6.0x -10.0% 4.0x -16% -17% -21% -20.0% 2.0x .0x -30.0% Chile Peru* Colombia *Peru: vs 2Y historical average Andean Equities Fwd EV/EBITDA (12 month rolling) vs 5Y historical average

EV/EBITDA FWD vs Historical 5Y Average

9.0x 0.0% 7.6x 8.0x 7.0x 7.2x -2.0% 7.0x -4.0% 6.0x -6.0% -8.0% 5.0x -10.0% 4.0x -12.0% 3.0x -15% -14% -14.0% 2.0x -16.0% -17% 1.0x -18.0% .0x -20.0% Chile Peru Colombia Source: Credicorp Capital, & Bloomberg

3 Strategy Summary within Andean Context Long view Short view (12-to-18 months) (1-to -3 months) Chile Allocation: Overweight (+) Safe haven on the regional landscape compared to riskier markets The Cencosud's real estate IPO has passed, while (+) Discounted valuations when compared to its history the Enel Americas capital increase just started its (+) Positive recovery in 2H19 of macro figures subscription period for 30 days. Although one deal (+) Important capital market events are fading away has gone by, we still have to wait not to have further (-) Negative impact of global risks overhang. We believe it all comes down to earnings (-) No clear catalyst with lacking earning growth in short term growth and macro recovery, as we believe those are (-) Exposure to risks coming from Argentina and Brazil the triggers to unlock the value seen in the discounted valuations of the market. Strategy: We continue to favor a stock picking strategy of companies with solid fundamentals, earnings momentum and clear catalysts. Top picks: ILC, Engie Chile and SQM-B Colombia Allocation: neutral (+) Better operating/financial trends at the banking sector and rejection of the law to The most important issues in the short term are: eliminate fees. global tensions, oil prices, exchange rate (+) Recovery of the consumption and cement/construction sectors. performance, corporate governance issues/news, (+) Inflows coming from local pension funds. special opeartions for ISA and Éxito and 2Q19 (-) Volatility across foreign markets. results. (-) Twin deficits. (-) Labour market. Strategy: We have decided to stay Neutral in Colombia. We see higher risk aversion around the globe, which is not particularly positive for Colombia even when considering a relative context. From a bottom-up perspective, we maintian Bancolombia and Davivienda in our top picks given the positive perspective on the sector. Finally, we continue to bet on private consumption and cement sectors. Top picks: Davivienda, Bancolombia, Cementos Argos, and Nutresa. Peru Allocation: Underweight (+) Private consumption remains resilient, in contrast with both public and private Momentum would continue in Luz del Sur, amid its investment. process of sale. For InRetail, we leverage on (+) Political noise is low, though risk of confrontation remains. synergies to be unlocked and 2Q19 results. Also, we (+/-) Truce in US-China trade war gives support to metal prices, but uncertainty is think Unacem's 2Q19 results will reaffirm additional high regarding final outcome of negotiations. value from the elimination of management (-) Business expectations deteriorated again; skepticism remains over meaningful contracts. Engie still shows upside potential, and economic stimulus measures. 2Q19 results should be sound. Finally, Nexa (-) Valuations of non-mining companies remain at their historical averages. Resources bets on zinc price recovery, and it is strongly discounted vs. its global peers.

Strategy: Trading ideas: As commodity price short-term risks persist, we continue favoring tocks such as Luz del Sur, InRetail, Unacem, Engie Peru and Nexa Ferreycorp, linked to the upcycle of mining investment. Also, strong private Resources. consumption in 2019 and company fundamentals support InRetail. Top Picks: InRetail and Ferreycorp.

4 Chile Some green shoots during the month; still a long way to go

Positive month in In June, the Chilean market posted a positive return in CLP (+1.9%) and USD terms of returns for (+6.6%), which was below the performance of Peru and Colombia in local currency Chile. (+3.5% and +4.2%, respectively). The local market posted a positive performance compared to previous months, which we ascribe to the recent rate cut by the Central Bank, reaffirming a better macro outlook for 2H19 as well as a higher appetite for large cap names that are discounted. However, we maintain our view that the recovery of the local index will be gradual during the 2H19, given that foreign investors are still on the sidelines of the local market with limited flow activity. This is enhanced by the holiday season in the northern hemisphere, which started in June. Local investors continue to be cautious and are not showing a clear trend. As we have mentioned in previous reports, we believe local investors have been on the sidelines due to two of the most significant capital market events of the year: (i) the USD 3.0bn capital increase of Enel Americas and (ii) the IPO of the real estate division of Cencosud, which is expected to amount to USD 1.0bn. The Cencosud operation has already been executed, and local investors had a strong participation, as we expected. Local investors purchased over 80% of the offering, with nearly 58% of the total going to local pension funds. In the case of the Enel Americas capital increase, the subscription period started on June 27th and lasts 30 days, which is why it remains a significant market event.

Short-term During June, the IPO of Cencosud Shopping S.A. (CSSA) took place, being one of momentum for the most important events in the market for 2019. On June 28th, CSSA was open to Cencosud is positive trade, with a placement price of CLP 1,521 per share, implying a market cap of USD due to deleveraging 2,800mn, with a book demand of 2.8x. During the IPO, the most active investors were and stronger AFPs, ending with 58.8% of the placement; as in the IPO of Mall Plaza, foreigners expectations for continued to show low levels of activity. The new real estate vehicle is an important 2H19. player in the region with assets in Chile (33 shopping centers), Peru (two shopping centers and two plots of land) and Colombia (four shopping centers located in Medellín, Bogotá, Barranquilla and Cali). Opportunities for the stock come from a potential GLA increase with low levels of CAPEX, mainly linked to potential Costanera Center expansions, (the remaining towers: ~109,000 sqm and additional commercial areas: ~23,000 sqm). However, we believe there are some risks for minorities: i) the inefficient capital structure; it is not clear if the company will use this money for future expansions or if the dividend yield policy will change; we estimate that the company will have a positive net cash flow (after capital expenditures, financial expenses, taxes and dividends, considering a dividend policy of ~30%) of ~USD 150-120mn and ii) certain conflicts of interest, like the ~40% of GLA in Chile that is leased to parties related to Cencosud, the contract Cencosud holding has with CSSA for back-office services and the landbank and commercial assets that could be transferred to CSSA. With the completion of the IPO, we expect a reduction of debt levels for Cencosud; with the ~USD 1bn raise due to the IPO, Cencosud will be able to reduce debt, reaching levels of ~4.0x and maintaining the investment grade rating. Looking forward, we are waiting for the extraordinary shareholders meeting that will be held on August 23rd, in which CSSA is expected to appoint the new board of directors.

5 The cut in the monetary policy rate was a moderate trigger in June. The BCCh cut the monetary policy rate by 50 bps to 2.50%, which we believe will be an impulse amid lower growth momentum and will set a more promising scenario for macro recovery in 2H19. However, as we mentioned in our last monthly report, it was not a material driver for the market. We believe the BCCh was just aligning itself with the market, which was pricing in weaker-than-expected activity, and, therefore, we do not expect a significant reaction from the Chilean stock market going forward.

We expect a return of The BCCh announced that the Imacec rose 2.3% y/y (+0.2% m/m) in May-19, in line close-to-potential with the market consensus, after the mixed signals from sectorial data in the last growth rates starting week of June and the recent positive surprise from commerce figures. This is the in 2H19. highest level since Dec-18. The main contribution came from non-mining components, and we highlight that the performance of mining-related sectors is still disappointing. Accordingly, we expect the economy to grow by slightly above 2% in 1H19, but we assume the return of close-to-potential growth rates starting in 2H19. The non-mining sectors’ positive momentum continues. In May-19, the mining Imacec decreased by 2.3% y/y, erasing the advance in Apr-19 (+1.9% y/y). This figure reflects a slower-than-expected dynamism from this relevant sector. In contrast, the non-mining components positively contributed to the Imacec expansion with growth of 2.8% y/y, the largest increase so far this year, led once again by a positive dynamism of services. More importantly, the seasonally-adjusted growth of non-mining activity showed a solid expansion of 0.4% m/m, driven by manufacturing and commerce. 2Q19 GDP will still grow closer to 2% than 3%. We preliminarily expect an Imacec increase of 2.2-2.5% in Jun-19 due to a high statistical comparison base (Imacec advanced 4.5% y/y in Jun-18). Also, we anticipate that Imacec growth could be affected by Chuquicamata’s 14-day labor strike. Furthermore, we highlight that non-mining sectors have continued to show positive trends. All-in, we reaffirm our 2.7% GDP growth rate forecast for this year led by a significant recovery of economic activity in 2H19.

Still a long way from During June, the local market had a generalized recovery after a weak performance seeing a significant in the first five months of the year. In fact, of the ten largest shares (~65% of the total recovery. market), the only shares that posted negative returns were Banco de Chile (-1.9%), SQM- B (-1.6%) and CMPC (-1.3%). Among the positive performances of large caps, we highlight Enel Americas (+5.8%), Falabella (+3.4%), Cencosud (+3.1%), BCI (+2.7%) and LATAM (+2.5%). It was a generalized recovery as only six of the 30 names in the index posted a negative return. However, the recovery is still mild, considering the discount in terms of valuation against the historical three-year averages of PE and EV/EBITDA.

6 Chile Strategy

We are keeping Chile in an Overweight position in the Andean region. We still ILC and Engie believe that a gradual recovery in 2H19 will come on the back of more favorable macro Chile continue to performance and a weaker base of comparison for EPS growth. In addition, there is a be in our Top more favorable balance of risks compared to Colombia, which has strongly outperformed, Picks; we have and Peru, which has greater exposure to commodities and the potential risks of the trade replaced SK with war between China and the US. SQM-B. Our Chilean equity sample is trading at 15.0x P/E 12m Fwd and 7.6x EV/EBITDA 12m Fwd; both continue to be significantly discounted against the market’s three-year average. As we have mentioned before, even when adjusting earnings for large sectors in the index such as Retail, Banks and Forestry, our sample is still trading below its three-year average, and downside seems limited. Our main concern is the limited short-term momentum, with value unlocked as earnings gradually improve as macro figures, especially consumption, start to recover. We believe our relative play should take a couple of months to pay off, considering the weak momentum of the Chilean market.

We maintain our selective strategy in the Chilean stock market. We have maintained ILC and Engie Chile in our Top Picks and have added SQM-B, replacing SK. SK had a really strong performance on the back of a positive outlook for the construction sector. We believe it has already paid off, and it is time to take profit. As for SQM-B, we believe shares have been significantly pressured due to an extremely negative implicit scenario for the production and price of lithium. In our view, the discount assigned by the market is unjustified, and we believe these price levels provide an attractive entry point.

P/E Forward (12-month rolling) FV/EBITDA Forward (12-month rolling)

26 12

24 11 22

20 10

18 9 16 15.0x 8 7.6x 14

12 7 Jul-13 Jul-15 Jul-17 Jul-19 Jul-13 Jul-15 Jul-17 Jul-19 Source: Company Reports, Credicorp Capital, & Bloomberg

7 Top Picks Chile

ILC and Engie ILC (BUY; TP: CLP 14,200). We recently updated our coverage of ILC shares, Chile continue to maintaining our Buy rating and adjusting our TP from CLP 12,900 to CLP 14,200 (+10%), be in our Top which implies a ~30% return including dividends. ILC shares decouple from the rest of the Picks; we have Chilean market as they are one of the few stories that offer an attractive ordinary EPS replaced SK with growth outlook for 2019 and beyond. In addition, valuations suggest that shares are SQM-B. trading cheap, and, since regulatory risk has significantly decreased, we believe downside risk is limited. This, together with a high dividend yield (over 4%), supports our thesis that ILC shares are high-quality assets that work perfectly as a long-term investment opportunity.

Engie Chile (BUY; TP: CLP 1,450). We are maintaining Engie Chile in our Top Picks. Its defensive profile, excellent long-term PPA portfolio and attractive dividend yield support our recommendation. The EBITDA 2019 guidance of USD 470mn implies a ~30% increase in results, on the back of the expansion of 375MW in the IEM project and sales of the new SIC contract.

SQM (BUY; TP CLP 32,000 (local) / USD 48 (ADR)). We recently updated our coverage of SQM, upgrading shares to Buy and adjusting our 2019YE TP to CLP 32,000 (local) / USD 48 (ADR). Our rating upgrade comes after the strong underperformance of the shares since our last report in March of 2019 (-19.3% (local) and -21.2% (ADR) vs -3.9% for the IPSA). We believe our recommendation could take a couple of months to pay off as we foresee challenging earnings momentum in the upcoming quarters; however, we believe the market is pricing in an extremely bearish long-term scenario for the company, and, therefore, we believe shares are extremely discounted. All in, we believe this is a good entry point for investors.

Chile - Top Picks

Chilean Picks Last Target Total Mkt. P/E FV/EBITDA P/BV Div Yield Price Price Upside Return (USD mn) 2019E 2020E 2019E 2020E LTM 2019E Sectors ILC 11,562 14,200 22.8% 27.3% 1,666 11.2 9.6 nm nm 1.6 4.5% Conglomerates Engie Chile 1,219.0 1,450.0 18.9% 23.1% 1,866 10.8 10.2 5.8 5.6 0.9 4.1% Utilities SQM-B 20,500.0 32,000.0 56.1% 61.5% 7,712 30.8 27.8 12.5 11.7 3.7 5.4% Materials Chilean Picks a 32.6% 37.3% 11,244 17.6 15.9 9.1 8.6 2.1 4.7% IPSA 5,055 6,150 22% 25% 154,481 15.4 13.8 8.6 9.0 1.6 3.8% a Simple average, excluding Market Capitalization

Sources: Bloomberg, Company Reports and Credicorp Capital a Simple average, excluding Market Capitalization b Prices in local currencies

8 Colombia Several positive surprises on the Colombian market during June

Market Color

In June, the COLCAP index outperformed the MSCI Latam. The local index rose 10.1% in USD terms (4.6% in local currency), compared to a 6.2% increase for the MSCI Latam. We believe that the positive performance in Colombia was mainly explained by: i) the rejection of the law designed to eliminate some banking fees, primarily for debit/credit cards, ii) the 3.19% increase in oil prices during the month and iii) the positive performance of the COP after the recent more dovish speech from the Fed.

Exito and Isa From a bottom-up perspective, the positive news for Exito shareholders, the expected posted strong effects of the conglomerates law on Aval and the expectation of potential divestments of results in June. ISA (both by EPM and the Government) also drove the COLCAP index. In fact, shares of these companies advanced 18.3%, 11.2% and 10.3%, respectively. A couple of weeks ago, Grupo Casino proposed a reorganization transaction for its Latin American assets. The proposed transaction involves: (i) the launch of an all-cash tender offer by GPA to acquire up to all shares of Almacenes Éxito S.A., (ii) the acquisition by Casino of all the controlling shares issued by GPA currently held indirectly by Exito for a fair price and (iii) the migration of GPA to Novo Mercado, with the conversion of all the preferred shares issued by GPA into common shares at a 1:1 ratio. The price to be offered by GPA for the shares of Exito will be examined by a special independent committee. The executive officers offered an indication price for Exito shares in the range of COP 16,000 to COP 18,000 per share. Given that this transaction eliminates corporate governance issues, we believe there is room for the acquisition of Exito to be placed in the upper part of this range. At the suggested price range (COP 16,000 - COP 18,000), valuations seem discounted when compared to peers (EV/EBITDA 6.4x - 7x vs 10.2x for LatAm food players). Our current target price includes a 25% corporate governance discount, which should decrease or even disappear after the restructuring of the company’s LatAm assets. Without considering this discount, our target price for Exito increases to ~COP 21,000 per share. This transaction alone will not contribute to reducing debt at the Casino level. Depending on the price, Casino should receive USD 1.2bn - USD 1.4bn for the sale of its 55.3% stake in Exito, but it will pay almost the same amount for Exito’s stake in Segisor. Gain for Casino is coming from unbounding value for lower corporate governance discount and the creation of a more liquid asset. This transaction will also simplify cash transference and dividend payment through the ownership chain.

Regarding Aval, we believe that the outperformance was explained by higher demand for the name. It is important to note that The Conglomerates Law sets new ground rules for related-party investments, making them possible (they were highly restricted before the adoption of the law). This allows for inflows from Aval’s related parties.

9 The rejection of the bill that was seeking to eliminate some banking fees acted as a short-term catalyst for the banking industry. On June 18th, the Third Commission of the Senate did not approve the law because the bill could violate the freedom of business and potentially affect the access of certain segments of the population, particularly low income individuals, to financial products. We believe that the news was positive from a market perspective, particularly for the banking sector. In fact, since the rejection of the bill in Congress, Aval, Bancolombia and Davivienda have increased by 4.4%, 2.0% and 0.8% (in USD terms), respectively. Finally, it is important to note that, if the leaders of the initiative try to present the bill to Congress again, the law must be approved in both chambers, with two debates in each chamber. The new legislative period starts this month (July 20th, 2019) in Colombia.

Regarding market players and flows, local pension funds had by far the largest net buying position in May-19; meanwhile, ETF flows to equities in Colombia have stayed resilient when compared to regional peers (Chile and Peru). As of May-19, local pension funds had the largest net buying position (USD 335.6 mn); these agents were followed by brokerage firms with a modest buying position of USD 22.5 mn. On the other hand, foreigners, retail and corporates have all become net sellers with net selling positions of USD 148.5 mn, USD 87.5 and USD 69.0 mn, respectively. This allocation supports our current Neutral recommendation for Colombia. However, we highlight that equity-oriented ETF flows to Colombia have been stronger when compared to peers in the region. In fact, inflows to Colombia (as of June 28th, 2019) amounted to USD 269 mn, compared to -USD 57 mn for Chile and USD 20 mn for Peru.

Macro / political developments

The mid-term fiscal framework was published in June. In our view, the fiscal outlook is not as clear as the MoF believes it to be. However, a strategy has been defined. The MFMP 2019 was presented with four main messages: i) higher growth is the bet of the government, ii) the fiscal outlook is clear, iii) the latest tax reform and the implementation of the electronic invoice will allow a stabilization of tax revenues and iv) the MoF will improve the efficiency of public spending. Thus, another tax reform will not be needed, according to the MoF. Importantly, the MoF reaffirmed the fiscal deficit targets of 2.4% and 2.2% of GDP for 2019 and 2020, meaning that the additional room provided by the Fiscal Rule Committee will not be used. We think that the outlined fiscal strategy is headed in the right direction. That said, most assumptions are subject to relatively high uncertainty, especially considering the optimistic GDP growth estimates of 3.6% in 2019 and 4.0% in 2020.

Our year-end In June, we released our quarterly macro report, in which we introduced our main macro COLCAP target assumptions for Colombia. We continue to expect an acceleration of the economy during remains at 1,720 the upcoming quarters. We acknowledge that GDP surprised us to the downside in 1Q19, points. growing 2.8% y/y vs our 3.5% estimate. That said, this was almost entirely explained by a depressed building sector (-8.8% y/y). Oil-mining, commerce, financial activities and real estate services improved significantly, even when seasonally-adjusted series are considered. On the demand side, private consumption continued to accelerate in 1Q19 (4.0% y/y; 4Q18: 3.6% y/y), and leading indicators for 2Q19 point towards further strengthening amid favorable fundamentals. Ex-construction investment showed healthy behavior with the machinery and equipment component growing 17.4% y/y. We expect favorable conditions for businesses, including lower taxes, higher sentiment and low interest rates, to lead to stronger investment ahead. In addition, civil works should maintain a positive trend amid solid public spending prior to regional and local elections (Oct-19), and a faster pace of execution of 4G road concessions and a gradual recovery of the building sector seem likely. All-in, we maintain our GDP growth estimates at 3.3% and 3.2% for 2019 and 2020, respectively.

10 Inflation has remained relatively stable this year (currently standing at 3.31% vs 3.24% in Dec-18). Supply shocks have explained the rise from the cyclical low of Feb-19 (3.01%), including higher food and regulated prices, while the average of core measures has stayed below 3%. We have increased our year-end estimate to 3.5% (3.3% before) due to these supply shocks and the possibility of higher tradable prices amid recent COP depreciation (though the COP has performed better in recent days) and a demanding base of comparison. As for monetary policy, the dramatic change in global conditions and the recent dovish language from the BanRep’s governor suggest that it is likely that the BanRep will remain on hold for longer. Thus, we now expect the repo rate to remain at 4.25% for the remainder of the year.

Equity strategy

Despite our Neutral position on a regional basis, our 2019E year-end target for the COLCAP index remains unchanged at 1,720 points (consistent with a still positive view on local equities). From a bottom-up perspective and considering forward trading multiples, the local market remains attractive. The Colombian equity market currently trades at a 12-month forward of 14.6x P/E and 7.2x EV/EBITDA, compared to an average of 18.4x and 8.4x over the last three years. Levels remain one standard deviation below historical levels.

Regarding asset selection, our equity strategy is unchanged. The top banks continue to be in our core equity strategy, and we maintain our bets on Cementos Argos and Nutresa.

As we mentioned in the last report, we recently updated our figures for both banks. Operating/financial trends should continue to maintain positive momentum across the banking industry, mainly driven by: i) acceleration of loan growth (we forecast a figure of 9.0% y/y in 2019, compared to 6.2% y/y in 2018), ii) a decrease of 10-30 bps in cost of risk during the 2019-2020 period compared to the levels observed in 2017-2018, iii) the lack of capital concerns and requirements, even when considering the implementation of Basel III standards (excluding M&A) (density in risk-weighted assets may decline as new regulations may require changes, particularly in the commercial and mortgage segment) and iv) the combination of ROAE expansions (at least 100 bps during the 2019-2020 period vs 2018) and trading multiples below or close to 1.5x P/BV 2019E, which is an ideal combo for investors. We expect to observe this positive trend in the figures reported in 2Q19. Finally, the main short-term threat to our thesis dissipated after Congress rejected the bill designed to eliminate some banking fees. We will continue to monitor any further developments in Congress as the new legislative period starts on July 20th, 2019.

We maintain our view of a slow recovery in the Colombian cement sector (in terms of prices and quantities) during 2019. Cement dispatches have posted a 1.6% LTM increase, while prices have increased 6.35% YTD, above our 4.00% estimate. We highlight that this is the first simultaneous increase since 2015. Furthermore, we highlight that prices are still below import parity, which could make further price increases possible. At this point, a key threat to our thesis is the entrance of Ecocementos. In the construction sector, there are early signs of improvement. The decline in housing inventory and the deceleration in the decrease of licenses are positive, in our view. However, we highlight that inventories remain high.

On the consumption front, some signs of recovery have been seen in recent macro figures as well as in the results of the companies in the sector. We expect that to gradually improve which is why we are favoring stock on the sector in our Top Picks.

Finally, private consumption fundamentals remain resilient, and we maintain Nutresa as one of our Top Picks.

11 P/E Forward (12-month rolling) EV/EBITDA Forward (12-month rolling)

28 11 26 24 10 22 9 20 18 8 16 14 7 14.6x 7.2x 12 10 6 Jul-16 Jul-17 Jul-18 Jul-19 Jul-16 Jul-17 Jul-18 Jul-19 Source: Company Reports, Credicorp Capital, & Bloomberg

12 Top Picks Colombia

Davivienda (BUY; T.P.: COP 42,000). We are maintaining Davivienda in our Top Picks. We recently released a new update on the bank, in which we reiterated our BUY rating (see report). Our positive view on the bank is mainly supported by: i) higher expected loan growth in Colombia compared to the industry average for the region (12.1% y/y vs 8.8% y/y for 2019E), ii) better trends in asset quality compared to prior years due to lower provision expenses in key corporate cases and an improvement of the retail segment, particularly in Colombia, iii) recent developments on the digital front related to new products that have a higher contribution to the total sales of the bank (27.0% of total sales currently come from digital channels vs 1.0% in 1Q18), iv) ROAE that is expected to improve by at least 100 bps from 2019E in 2020E and v) the fact that our T.P. has an implicit valuation of a conservative 1.5x P/BV 2019E and that shares look attractive when adjusting P/BV for value generation in 2020E.

Bancolombia (HOLD; T.P.: COP 43,000). In addition to similar trends in loan growth and lower provision expenses in Colombia when compared to Davivienda, we believe that Bancolombia will post a better operating/financial performance mainly driven by: i) efforts on OPEX that should lead to a cost-to-income ratio of 48.6% in 2019E, compared to 50.1% in 2018 and ii) its focus on the consumer segment, in which we expect the bank to grow by more than 15.0% y/y, compared to ~12.0% y/y for the industry. Finally, we believe that relative valuation looks attractive when considering the adjusted P/BV for value generation towards 2020E.

Cemargos (BUY; T.P.: COP 9,900). We are maintaining Cemargos in our Top Picks. We believe the fundamentals for Cemargos are attractive given the simultaneous price and volume increases in Colombia and the expectation of decreases in energy prices. This should lead to EBTIDA margin expansions in Colombia. In the case of the US market, we continue to expect a slight increase in the top line. Furthermore, we expect the BEST 2.0 program to pay off. This should result in EBTIDA margin expansions in the US. As a result, Cemargos’ EBITDA should expand by +20% during 2019, and its price has dropped ~40% since last year.

Nutresa (BUY; T.P.: COP 31,900) We continue to be optimistic about the company’s performance in the mid term. 1Q19 results left us with a more positive view on growth, which, in our view, will be the main driver for shares. Our thesis on Nutresa is based on: i) the volume growth trend, which has already shown a recovery, leveraging on the company’s leading position in its core categories under a more favorable scenario for consumption in Colombia, ii) increases in prices due to innovation, sales mix and specific price increases, iii) a favorable scenario for commodities and iv) the turnaround story in the underperforming segments of recent years: TMLUC and El Corral.

Colombia - Top Picks Colombian Picks Last Target Total Mkt. P/E FV/EBITDA P/BV Div Yield Price Price Upside Return (USD mn) 2019E 2020E 2019E 2020E LTM 2019E Sector Davivienda 40,080 42,000 5% 7% 5,808 11.9 9.8 nm nm 1.6 2.0% Banks Bancolombia 40,700 43,000 6% 8% 11,819 12.3 10.4 nm nm 1.6 2.8% Banks Nutresa 25,220 31,900 26% 29% 3,659 16.7 14.7 8.4 7.7 1.4 2.3% Food & Beverages Cemargos 7,590 9,900 30% 34% 3,208 44.2 43.2 10.6 10.5 1.4 3.2% Cement & Construction Colombian Picks a 17% 19.4% 24,494 21.3 19.5 9.5 9.1 1.5 2.6% COLCAP 1,564 1,720 10% 14% 103,751 15.5 13.7 7.7 7.1 1.0 4.5%

Sources: Bloomberg, Company Reports and Credicorp Capital a Simple average, excluding Market Capitalization

13 Peru With market risks still looming, opportunities come down to specific names

The economy’s underperformance continued in April, reinforcing trends that have Primary sectors triggered downward revisions to 2019 GDP forecasts. Economic activity was flat in fared worse than April (+0.02% y/y), significantly below market expectations (Bloomberg: +1.0% y/y), mainly expected, triggering due to a further contraction of primary sectors (fishing, mining and primary resource a downward revision manufacturing). On the other hand, sectors linked to domestic demand managed to to our 2019 GDP maintain healthy growth throughout 1Q19, with the exception of construction, which estimate. suggests that private consumption will be the main growth engine this year. However, the lackluster performance of primary sectors and the deterioration of the international environment triggered a downward revision to our 2019 GDP growth forecast, from 3.7% to 3.0%. Similarly, the Ministry of Economy and Finance cut its estimate, from 4.2% to 3.7%, and the Central Bank did so, from 4.0% to 3.4%.

Early activity indicators point towards a better economic outlook in 3Q19, though we remain cautious about these signals. Domestic cement consumption rose 4.3% y/y Some positive in May, above the average of the Jan-Apr period (+2.5% y/y). Although this is an signals in the acceleration, we are waiting for a consistent trend to emerge before becoming more construction sector, optimistic on the short-term outlook for cement companies and the construction industry. though we still need Moreover, even though, according to Finance Minister Carlos Oliva, public investment to see a consistent surged 19% y/y in Jun-19 (after a ~30% contraction in May-19), we remain cautious as trend. this indicator has shown wide variability in recent months. Furthermore, as of Jun-19, regional governments have only executed 20% of their 2019 budget for public works. Overall, we believe more consistent results need to be seen to increase the short-term appeal of names such as Unacem, Pacasmayo and Ferreycorp.

Although the On the external front, a calmer start to 3Q19, but there are still key risks. On the external front looks edges of the recent G20 Summit, the US and China agreed to resume trade negotiations, calmer this month, giving each other a few concessions. In the very short term, as long as this truce lasts, commodity price risk base metal prices should find support near current levels after a volatile June (copper is high, which could +2.5%, zinc -6.2%). However, as geopolitical risks have mixed with strictly trade issues, continue to impact uncertainty about the direction of metal prices in the upcoming months remains high. mining production. As expected, LTM inflation fell in June; Central Bank (BCR) to maintain its policy rate at 2.75% this year. CPI fell 0.09% m/m in June, below expectations (Bloomberg: +0.10%), and, thus, 12-month inflation retreated to 2.3%, well within the BCR’s target range (1%-3%). 12-month core inflation (excl. food & energy) also fell to 2.3%. Since the economy is not showing demand-side pressures, annual inflation should remain around current levels in 2H19. In this scenario, the BCR would maintain its accommodative stance for the rest of the year, as long as the economy keeps growing close to but below Political noise is its potential. lower; new frictions may arise near the Political noise has diminished; for now, the government’s main challenge is to end of July due to reignite positive expectations on the economy. The Executive’s political reform the Executive’s package is being debated in the corresponding committees in Congress, which has set political reform July 25th as the deadline for a plenary vote. We cannot rule out another confrontation package. around that date if the government considers the final form of the reform package to have been substantially altered. On the other hand, business expectations on the performance of the economy fell again last month, with a growing sense that more aggressive measures are needed to propel non-mining private and public investment.

14 Peru Strategy

In June, the Lima Stock Exchange reversed the losses witnessed in May and April, yielding 6.14% in USD and 3.51% in PEN. The appreciation was mainly driven by index heavyweights Buenaventura and Southern Copper amid a slight recovery in copper prices and a surge in gold prices as a result of the recent dovish tone of the Fed. Additionally, Luz del Sur surged 13.77% m/m as it disclosed its controller received a non-binding offer for the purchase of the company. Moreover, IFS announced that it submitted to the SEC the F-1 Form for the listing of shares on the NYSE, which boosted its shares by 7.99% to USD 50, in line with our target price of USD 49.

We maintain our Underweight recommendation for Peru as, on the local front, We maintain our public and private investment remain weak (despite a slight recovery in cement Underweight consumption), in spite of a not-so-harsh external front. As already stated, cement recommendation for consumption grew in May but is below expectations since the YTD figures are still weak. Peru as the local Furthermore, both public and private investment remain subdued. To this extent, the June front is not yet figure for public investment may be misleading as previous months showed significant showing clear decreases. As such, nothing has materially changed, thus we maintain our relative call in recovery signs. Peru.

Confidence in local private consumption remains. As such, InRetail continues to be one of our Top Picks, even though it has been rallying since the start of the year. Additionally, we favor utilities to avoid the volatility of mining companies and high beta sectors for now. On cement & construction, Unacem should start to reflect the value of the elimination of management fees, while Pacasmayo’s stock seems weak due to reconstruction delays. On the other hand, Ferreycorp’s 2019 results should continue benefiting from its strong positioning in terms of mining investment, and we believe the current price is not reflecting this.

Trading at a strong discount against its historical averages, despite the recent We still prefer surge. At 13.7x 12M forward P/E, companies under our coverage are trading at a ~12.7% domestic demand discount against the two-year historical average (corrected for the significant losses in stocks amid Buenaventura). Likewise, at 7.0x, the 12M forward EV/EBITDA is at a 13.5% discount vs commodity price the five-year historical average. For both multiples, the discount is at approximately one uncertainty in the standard deviation from historical averages. short term. Market multiples seem to be fairly priced on an ex-mining companies basis. Mining companies are still trading below historical averages, affected by depressed metal prices. On the other hand, stocks linked to domestic demand are trading close to their historical averages.

P/E Forward (12 month rolling) * FV/EBITDA Forward (12 month rolling) *

22 11

20 10

18 9

16 8 7.0x 13.7x 14 7

12 6 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jul-19

Source: Company Reports, Credicorp Capital, & Bloomberg *Mean in the chart considers the last 2 years.

15 Top Picks Peru

InRetail (BUY; T.P.: USD 43.80). We maintain our strong conviction on the name as the We continue to see new guidance of ~30% growth in EBITDA for Pharma and ~15% growth in EBITDA for upside potential in Food seems achievable. Growth opportunities in Food are coming from the new formats InRetail in the short Economax (cash & carry) and Mass (hard discounter), which reached ~7% and ~3%, and medium terms as respectively, of total food sales in 1Q19. Also, we believe that Inkafarma Express will synergies from allow InRetail to continue to gain market share in the traditional channel and that there is vertical integration room to improve margins due to synergies from vertical integration and store maturation. are yet to be fully All in, we believe that InRetail has a strong positioning in the Peruvian market and should realized. be able to continue to expand it.

Ferreycorp (BUY; T.P.: PEN 3.00). Ferreycorp revenues increased significantly in 1Q19 on the back of a growing spare parts & services (SP&S) business line, deliveries of equipment for mining units for contracts signed in 2018 and sales to the construction sector. Gross margin increased more than expected due to the higher participation of the SP&S segment in the sales mix, which reached record levels. The gross margin improvement, coupled with higher-than-expected depreciation and amortization, led to a We expect mining 2.9 pp increase in the EBITDA margin. Net income was further boosted by non-cash investment to post exchange rate (FX) gains as the PEN and CLP appreciated against the USD. expansions of 23% in 2019 and 17% in We believe Ferreycorp has attractive medium-term fundamentals. It will provide a fleet of 2020. CAT trucks of 320 MT and other types of equipment for the Quellaveco mining project; also, for a five-year period, it will provide specialized support to this Anglo American project (total value of the contract is USD 500mn, above our expectations). In addition, Ferreycorp has a USD 100mn contract with the Mina Justa project of Minsur to deliver CAT machines in 2019 and 2020. As such, Ferreycorp has locked in strong growth rates in sales of new machinery until at least 2021. Additionally, the sales of spare parts and services should continue to grow, albeit at a more moderate rate, providing more stability to the company’s overall revenues. These positive factors will drive 2019 results, and we believe this positive impact is not yet priced in at current price levels. All in all, Ferreycorp is positioned to be one of the top performers in this mining investment upcycle. .

Peru - Top Picks

Peruvian Picks Last Target Total Mkt. P/E FV/EBITDA P/BV Div Yield Price Price Upside Return (USD mn) 2019E 2020E 2019E 2020E LTM 2019E Sectors InRetail 39.00 43.80 12% 13.2% 3,958 27.7 18.8 13.2 12.1 3.1 0.9% Retail Ferreycorp 2.30 3.00 30% 36.8% 679 7.6 8.0 6.5 6.3 1.1 6.4% Materials Peruvian Picks a 21% 25.0% 4,638 17.6 13.4 9.9 9.2 2.1 3.6% S&P/BVL 20,770 23,400 13% 15% 37,641 14.7 12.8 8.9 7.6 2.0 2.6% a Simple average, excluding Market Capitalization, IFS share price in USD Source: Company Reports, Bloomberg and Credicorp Capital

16 Valuation Summary

June 2019

17 Chile

ADTV P/E FV/EBITDA P/BV Div Yield. ROAE ROAA Company Sector Px Last Px Target Rating Mkt. Cap Local ADR 2019E 2020E 2019E 2020E LTM 2019E 2020E 2019E 2020E 2019E 2020E AESGener Utilities 183 190 HOLD 2,216 1.6 8.2 8.7 6.6 6.2 0.9 13.0% 12.4% 10.5% 10.0% 3.4% 3.2% Aguas-A Utilities 406 390 UPERF 3,482 2.8 18.3 17.3 10.3 9.8 3.9 5.8% 6.1% 22.4% 23.3% 7.5% 7.7% Andina-B Food & Beverages 2,436 2,880 HOLD 3,165 4.3 0.4 17.8 15.7 8.4 7.9 2.8 4.2% 4.7% 15.4% 16.6% 6.0% 6.6% AntarChile Conglomerates 8,100 13,900 BUY 5,331 1.0 8.6 7.8 5.7 5.8 0.8 5.0% 4.8% 8.8% 9.1% 2.5% 2.6% Banco de Chile Banks 100 98.0 UPERF 14,747 7.7 2.2 15.8 14.6 nm nm 3.1 3.4% 3.6% 18.7% 19.1% 1.7% 1.7% Banco Santander Banks 51.2 56.0 HOLD 14,011 8.0 9.6 14.5 13.1 nm nm 3.2 4.2% 4.6% 20.0% 20.4% 1.6% 1.6% BCI Banks 46,882 49,100 HOLD 9,256 3.6 14.4 12.0 nm nm 1.8 2.2% 2.5% 12.3% 13.7% 1.0% 1.1% Besalco Construction 624 745 BUY 510 0.4 22.3 19.6 8.9 8.0 1.9 2.6% 2.9% 8.2% 8.9% 2.2% 2.4% CCU Food & Beverages 9,550 9,530 HOLD 5,202 3.7 5.7 21.3 19.1 10.2 9.5 3.3 5.1% 2.8% 12.6% 13.7% 7.2% 7.8% CMPC Pulp & Paper 1,830 2,100 HOLD 6,649 6.2 136.8 46.9 8.9 7.9 0.8 2.3% 0.7% 0.6% 1.8% 0.3% 0.9% Colbun Utilities 139.4 160.0 BUY 3,406 2.2 13.0 13.1 6.4 6.7 1.0 12.3% 6.5% 7.7% 7.8% 4.2% 4.2% Concha y Toro Food & Beverages 1,429 1,520 HOLD 1,540 1.4 16.4 16.4 11.7 10.8 1.9 2.4% 3.7% 11.0% 10.4% 5.9% 5.7% Copec Pulp & Paper 7,100 7,600 HOLD 13,564 7.4 21.8 22.0 9.4 9.0 1.2 3.2% 2.3% 5.8% 5.6% 2.6% 2.6% Embonor-B Food & Beverages 1,495 1,980 BUY 1,062 0.7 14.8 14.0 7.4 7.0 2.3 4.9% 5.1% 13.6% 13.7% 6.8% 6.9% Enel Americas Utilities 117.8 120.0 HOLD 9,750 13.4 10.4 0.2 0.2 4.6 4.0 2.4 6.2% 6.8% 15.3% 15.4% 4.7% 5.7% Enel Chile Utilities 65.3 74.0 HOLD 6,506 5.3 1.8 0.2 0.2 6.6 6.0 1.3 5.6% 6.3% 11.7% 13.2% 5.4% 6.3% Engie Chile Utilities 1,219.0 1,450.0 BUY 1,866 2.1 10.8 10.2 5.8 5.6 0.9 4.1% 9.4% 8.3% 8.5% 5.0% 5.3% Entel Telecom & IT 6,949 6,550 HOLD 3,020 2.4 40.8 30.7 7.5 6.9 1.6 0.0% 0.8% 4.1% 5.3% 1.4% 1.8% Falabella Retail 4,430.0 5,400.0 HOLD 16,307 17.0 20.0 16.7 12.6 10.9 2.4 1.3% 2.0% 10.3% 11.4% 3.6% 4.1% Forus Retail 1,650 2,310 BUY 618 0.5 16.2 14.7 9.2 8.5 1.9 2.5% 2.5% 11.8% 12.0% 10.5% 10.8% Habitat Financials 945 1,260 BUY 1,361 0.2 9.7 8.5 6.4 5.9 2.6 7.4% 7.4% 25.8% 26.8% 20.4% 21.3% Hites Retail 460 500 HOLD 254 0.2 15.9 12.4 11.1 9.5 1.3 2.4% 3.2% 7.8% 9.3% 3.2% 3.7% ILC Conglomerates 11,562.0 14,200.0 BUY 1,666 1.2 11.2 9.6 nm nm 1.6 4.5% 4.2% nm nm nm nm Itau Corpbanca Banks 5.65 7.65 BUY 4,128 2.9 0.1 12.1 9.7 nm nm 0.9 2.5% 3.0% 7.0% 8.3% 0.8% 0.9% Latam Airlines Transport 6,230 7,330 HOLD 5,804 5.7 4.1 19.2 15.8 8.0 7.3 1.4 0.8% 1.9% 6.6% 7.5% 1.5% 1.7% Masisa Materials 45 43 HOLD 506 0.3 51.4 141.4 11.0 12.5 0.5 2.2% 1.0% 1.0% 0.4% 0.8% 0.3% Parque Arauco Real Estate 1,902 1,970 HOLD 2,499 1.8 17.4 20.4 17.9 17.1 4.9 3.1% 3.2% 10.8% 8.8% 4.2% 3.4% Quiñenco Conglomerates 1,801 2,135 HOLD 4,340 0.9 17.3 16.8 nm nm 1.0 5.6% 6.0% nm nm nm nm Ripley Retail 536 663 HOLD 1,498 1.5 14.2 12.8 19.2 17.4 1.1 4.1% 4.3% 7.6% 8.2% 2.5% 2.7% Salfacorp Cement & Construction 850 980 BUY 550 0.6 15.1 13.3 19.4 16.8 1.0 2.0% 2.0% 6.6% 7.2% 2.3% 2.5% Security Conglomerates 274 330 HOLD 1,468 0.9 9.5 8.9 nm nm 1.4 5.1% 6.1% 13.7% 13.6% 0.9% 0.9% SK Industrial 1,275 1,373 BUY 1,932 0.3 16.8 13.7 8.8 7.7 1.5 3.5% 4.9% 9.0% 10.6% 3.3% 3.9% Sonda Telecom & IT 937 1,070 HOLD 1,187 1.3 33.0 22.0 10.3 8.7 1.6 0.7% 1.7% 4.9% 7.1% 2.6% 3.6% SQM-B Materials 20,500 32,000 BUY 7,712 14.7 32.9 30.8 27.8 12.5 11.7 3.7 5.4% 3.2% 12.9% 14.7% 6.1% 6.8% Chile Sample 5,055 6,150 154,481 132.7 15.4 13.8 8.6 9.0 1.6 3.8% 3.8% 9.7% 10.7% 2.0% 2.2%

Source: Company Reports, Credicorp Capital, & Bloomberg. For LATAM, EV/EBITDAR

18 Colombia

ADTV P/E FV/EBITDA P/BV Div Yield. ROAE ROAA Company Sector Px Last Px Target Rating Mkt. Cap Local ADR 2019E 2020E 2019E 2020E LTM 2019E 2020E 2019E 2020E 2019E 2020E Avianca Transport 1,545 2,160 UPERF 505 0.3 0.5 nm nm 4.8 4.5 0.4 0.0% 0.0% -2.3% -5.1% -0.4% -0.7% Bancolombia Banks 40,700 43,000 HOLD 11,819 6.1 15.0 12.3 10.4 nm nm 1.6 2.8% 3.0% 12.4% 13.6% 1.4% 1.5% BVC Financials 12,540 13,300 BUY 233 0.2 13.9 13.5 8.0 7.8 1.6 6.0% 5.1% 11.5% 11.4% 8.9% 8.9% Canacol Oil & Gas 10,680 10,680 HOLD 595 0.1 1.1 nm 5.4 3.2 3.0 2.6 0.0% 0.0% 35.2% 28.0% 12.1% 11.5% Cemargos Cement & Construction 7,590 9,900 BUY 3,208 2.1 44.2 43.2 10.6 10.5 1.4 3.2% 3.3% 2.9% 3.1% 1.3% 1.3% CLH Cement & Construction 4,490 5,700 HOLD 772 0.4 13.0 10.4 7.3 6.7 0.5 0.0% 0.0% 3.9% 4.7% 2.0% 2.5% Davivienda Banks 40,080 42,000 BUY 5,808 1.3 11.9 9.8 nm nm 1.6 2.0% 2.5% 12.8% 14.0% 1.3% 1.5% Ecopetrol Oil & Gas 3,010 3,580 HOLD 38,506 10.0 20.6 8.8 7.1 4.4 4.0 2.5 7.4% 7.4% 23.9% 26.5% 10.8% 13.1% Éxito Retail 16,700 16,150 HOLD 2,344 1.6 13.0 12.3 7.0 6.5 1.1 1.9% 3.8% 7.3% 8.5% 0.9% 1.0% Grupo Argos Conglomerates 17,660 21,500 HOLD 4,494 1.9 26.4 20.8 9.7 8.7 1.0 2.0% 2.1% 3.6% 4.5% 1.2% 1.6% Grupo Aval Banks 1,290 1,400 HOLD 8,971 2.0 1.7 10.4 9.0 nm nm 1.8 4.0% 4.3% 15.4% 16.7% 1.7% 1.9% Grupo Sura Conglomerates 33,980 39,100 HOLD 6,070 3.9 12.3 11.5 nm nm 0.8 1.6% 1.6% 6.3% 6.4% 2.2% 2.2% Nutresa Food & Beverages 25,220 31,900 BUY 3,659 1.2 16.7 14.7 8.4 7.7 1.4 2.3% 2.5% 5.3% 5.9% 3.1% 3.4% Colombia Sample 1,564 1,720 103,751 35.8 15.5 13.7 7.7 7.1 1.0 4.5% 4.8% 12.2% 14.3% 2.5% 2.9%

Source: Company Reports, Credicorp Capital, & Bloomberg

19 Peru

ADTV P/E FV/EBITDA P/BV Div Yield. ROAE ROAA Company Sector Px Last Px Target Rating Mkt. Cap Local ADR 2019E 2020E 2019E 2020E LTM 2019E 2020E 2019E 2020E 2019E 2020E Aceros Arequipa Materials 0.74 0.85 BUY 298 0.0 5.1 5.9 3.7 4.0 0.5 7.2% 7.1% 9.4% 7.6% 4.9% 3.9% Alicorp Food & Beverages 10.34 13.00 HOLD 2,631 0.9 15.4 13.3 10.9 9.9 3.0 2.7% 3.3% 16.7% 17.5% 6.0% 6.7% Cementos Pacasmayo Cement & Construction 5.8 8.1 HOLD 740 0.3 0.1 16.7 14.3 8.3 7.8 1.6 5.2% 6.0% 9.4% 10.8% 5.1% 5.9% Cerro Verde Mining 21.56 28.30 BUY 7,526 0.1 11.7 11.6 4.8 4.8 1.4 2.3% 2.6% 11.0% 10.4% 7.8% 7.5% Enel Generacion Peru Utilities 2.4 2.6 BUY 2,124 0.0 12.7 12.2 7.5 7.2 2.3 5.1% 5.1% 17.9% 17.5% 12.7% 12.8% Enel Distribucion Peru Utilities 5.50 6.85 HOLD 1,097 0.1 9.5 9.0 6.2 5.9 1.9 4.2% 4.4% 17.1% 16.3% 8.1% 7.9% Engie Peru Utilities 6.5 7.8 HOLD 1,192 0.1 10.9 10.3 6.8 6.6 1.1 5.1% 6.4% 9.6% 9.8% 5.0% 5.3% Ferreycorp Materials 2.30 3.00 BUY 679 0.5 7.6 8.0 6.5 6.3 1.1 6.4% 9.2% 12.8% 11.6% 5.6% 5.2% Graña y Montero Cement & Construction 1.9 2.5 HOLD 439 0.2 0.4 14.4 12.1 5.3 4.7 0.7 0.0% 3.0% 4.5% 5.2% 1.2% 1.5% IFS Conglomerates 46.30 49.00 BUY 5,542 0.7 12.8 11.7 nm nm 2.8 3.6% 4.3% 18.9% 18.7% 2.1% 2.1% InRetail Retail 39.0 43.8 BUY 3,958 2.0 27.7 18.8 13.2 12.1 3.1 0.9% 0.5% 10.9% 14.4% 3.4% 4.7% Luz del Sur Utilities 14.27 13.75 HOLD 2,073 0.2 16.0 15.3 10.9 10.3 2.6 4.3% 4.4% 15.6% 15.5% 7.1% 7.0% Nexa Resources Mining 9.5 14.2 BUY 1,215 1.6 1.6 10.2 5.4 1.1 0.9 0.5 -5.8% -5.9% 4.8% 8.6% 2.1% 3.8% Minsur Mining 1.68 1.95 BUY 1,438 0.2 28.4 22.2 8.5 8.7 1.2 0.0% 0.0% 3.9% 4.8% 2.0% 2.5% Unacem Cement & Construction 2.4 3.5 BUY 1,327 0.2 9.2 8.6 6.4 6.3 1.1 2.3% 2.2% 10.9% 10.6% 4.5% 4.8% Volcan Mining 0.55 1.00 HOLD 2,140 0.4 25.2 23.9 9.4 9.1 3.2 1.8% 1.7% 12.0% 11.8% 3.7% 3.8% Peru Sample 20,770 23,400 37,641 25.2 14.7 12.8 8.9 7.6 2.0 2.6% 2.9% 12.1% 12.2% 4.2% 5.7% Source: Company Reports, Credicorp Capital, & Bloomberg

20 Economic Forecasts

June 2019

21 Economic Forecasts

CHILE National Accounts (YoY) 2015 2016 2017 2018 2019F 2020F Current GDP (USDmm) 244,417 250,266 277,184 299,148 297,703 318,187 GDP (%) 2.3 1.3 1.5 4.0 2.7 3.3 Domestic Demand (% v ar.) 2.5 1.3 3.1 4.7 3.5 3.7 Total Consumption (% v ar.) 2.6 2.9 2.7 3.7 3.2 3.3 Inv estment / GDP 23.8 22.9 21.6 21.7 22.1 22.4 CPI 4.4 2.7 2.3 2.6 2.6 3.0 Reference rate (end of y ear) 3.50 3.50 2.50 2.75 2.25 2.75 Ex change rate (end of y ear) 709 667 615 696 675 665 Ex change rate (av g.) 655 677 649 640 675 670 Fiscal Balance (% GDP) -2.2 -2.7 -2.8 -1.7 -2.2 -1.9 Foreign Reserves (USDmm) 38,643 40,494 38,983 39,861 40,000 42,000 Source: INE, BCCh, Dipres & Credicorp Capital Estimates

PERU National Accounts (YoY) 2015 2016 2017 2018 2019F 2020F Current GDP (USDmm) 191,517 194,745 214,332 225,259 225,500 235,500 GDP (%) 3.3 4.0 2.5 4.0 3.0 3.5 Domestic Demand (% v ar.) 2.9 1.1 1.4 4.3 3.1 3.7 Total Consumption (% v ar.) 4.9 2.8 2.2 3.6 3.4 3.4 Inv estment / GDP 23.8 22.2 20.9 21.4 21.5 22.0 CPI 4.4 3.2 1.4 2.2 2.3 2.5 Ov ernight interest rate (end of y ear) 3.75 4.25 3.25 2.75 2.75 2.75 Ex change rate (end of y ear) 3.41 3.36 3.24 3.37 3.35-3.40 3.35-3.40 Ex change rate (av g.) 3.19 3.38 3.26 3.29 3.30-3.35 3.35-3.40 Fiscal Balance (% GDP) -2.1 -2.6 -3.1 -2.5 -2.0 -2.0 Foreign Reserves (USDmm) 61,485 61,686 63,621 60,121 66,500 67,300 Source: INEI, BCR & Credicorp Capital Estimates

COLOMBIA National Accounts (YoY) 2015 2016 2017 2018 2019F 2020F Current GDP (USDmm) 293,321 283,148 314,458 330,083 342,149 370,470 GDP (%) 3.0 2.1 1.4 2.7 3.3 3.2 Domestic Demand (% v ar.) 2.4 1.2 1.2 3.8 4.0 3.4 Total Consumption (% v ar.) 3.4 1.6 2.4 3.9 4.0 3.3 Inv estment / GDP 23.8 23.2 22.2 22.4 22.6 22.6 CPI 6.8 5.8 4.1 3.2 3.5 3.2 Ov ernight interest rate (end of y ear) 5.75 7.50 4.75 4.25 4.25 4.75 Ex change rate (end of y ear) 3,175 3,002 2,984 3,249 3,150 3,050 Ex change rate (av g.) 2,760 3,051 2,951 2,957 3,250 3,100 Fiscal Balance (% GDP) -3.0 -4.0 -3.6 -3.1 -2.6 -2.4 Foreign Reserves (USDmm) 46,741 46,683 47,637 48,402 50,402 51,507 Source: DANE, BanRep, Bloomberg & Credicorp Capital Estimates

22 Important Disclosures

This research report was prepared by Credicorp Capital Peru S.A and/or Credicorp Capital Colombia Sociedad Comisionista de Bolsa and/or Credicorp Capital S.A. Corredores de Bolsa, companies authorized to engage in securities activities in Peru, Colombia and Chile, respectively and indirect subsidiaries of Credicorp Capital Ltd. (jointly referred to as “Credicorp Capital”). None of the companies jointly referred to as Credicorp Capital are registered as broker-dealers in the United States and, therefore, they are not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. This research report is provided for distribution only to “major U.S. institutional investors” in reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information provided in this research report can do so only through Credicorp Capital Securities Inc., a registered broker-dealer in the United States. Under no circumstances may a U.S. recipient of this research report effect any transaction to buy or sell securities or related financial instruments directly through Credicorp Capital. CCSI or any of its representatives are not involved in any way in the preparation, development, or supervision of the research report and does not have any influence whatsoever over the research content. Any analyst whose name appears on this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority (“FINRA”) and is not a registered representative of Credicorp Capital Securities Inc. and, therefore, is not subject to applicable restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research analyst account.

A. Analyst Disclosures The functional job title of the person(s) responsible for the recommendations contained in this report is Equity Research Analyst unless otherwise stated on the cover.

Regulation AC - Analyst Certification: Each Equity Research Analyst listed on the front-page of this report is principally responsible for the preparation and content of all or any identified portion of this research report and hereby certifies that with respect to each issuer or security or any identified portion of the report with respect to an issuer or security that the Equity Research Analyst covers in this research report, all of the views expressed in this research report accurately reflect their personal views about those issuer(s) or securities. Each Equity Research Analyst also certifies that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that Equity Research Analyst in this research report. Each Equity Research Analyst certifies that he or she is acting independently and impartially from the referenced company/shareholders, directors and is not affected by any current or potential conflict of interest that may arise from any of the companies’ activities. Analyst Compensation: The research analyst(s) primarily responsible for the preparation of the content of this research report attest(s) that no part of his or her compensation was, is or will be, directly or indirectly, related to the specific recommendations that he or she expressed in the research report. The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues. Registration of non-US Analysts: Unless otherwise noted, the non-US analysts listed on the front of this report are employees of one of the companies jointly referred as Credicorp Capital, which are non-US affiliates of Credicorp Capital Securities Inc., a SEC registered and FINRA member broker-dealer. Equity Research Analysts employed by the companies jointly referred as Credicorp Capital, are not registered/ qualified as research analysts under FINRA/NYSE rules, are not registered representatives of Credicorp Capital Securities Inc. and may not be subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public appearances, and trading securities held by a research analyst account. Please refer to www.credicorpcapital.com for further information relating to research and conflict of interest management.

23 B. Ownership and Material Conflicts of Interest

Other significant financial interests

Credicorp Capital Securities Inc. or its affiliates ´beneficially own´ securities issued by the companies referenced in this report according to the following table:

Type of instruments Equal or less than USD 50,000 Equal or less than USD 100,000 Equal or less than USD 500,000 Equal or less than USD 1,000,000 More than USD 1,000,000 Other equity securities - Minsur - - AESGener, Aguas Andinas, Banco de Chile, BCI, Cencosud, CMPC, Colbun, Itaucorp, ECL, Falabella, LATAM Airlines, Ripley, Santander Chile, Security, Debt securities Entel - Davivienda, IFS ETB SQM, Ecopetrol, Grupo Aval, Alicorp, Cementos Pacasmayo, Enel GX Peru, Enel DX Peru, Engie Peru, Luz del Sur, Milpo, Minsur, Unacem, Volcan Avianca, Bancolombia, Celcia, Cemargos, Cemex Latam Deriv ativ es on equity /debt Holdings, Ecopetrol, EEB, Éxito, - - - - securities Grupo Argos, Grupo Aval, ISA, Nutresa

The research analyst(s) primarily responsible for the preparation of the content of this research report or their household members ´beneficially own´ securities issued by the companies referenced in this report according to the following table:

Type of instruments Equal or less than USD 10,000 Equity securities BCI, Ferreycorp, and InRetail Debt securities - Derivatives on equity/debt - securities C. Compensation and Investment Banking Activities

Credicorp Capital Securities Inc. or its affiliates have managed or co-managed a public offering of securities, in the past 12 months, for the following company(ies): Davivienda, ISA, Alicorp, Engie Peru and Luz del Sur. Credicorp Capital Securities Inc. or its affiliates currently have or had, within the past 12 months, the following company(ies) as investment banking client(s): Davivienda, EEB, ISA, Aceros Arequipa, AIH, Alicorp, Buenaventura, Cementos Pacasmayo, Engie Peru, Ferreycorp, Graña y Montero, IFS, InRetail, Luz del Sur, Milpo and Volcan. Credicorp Capital Securities Inc. or its affiliates also have received compensation, within the past 12 months, for investment banking services from the following company(ies): Davivienda, GEB, ISA, Aceros Arequipa, AIH, Alicorp, Buenaventura, Cementos Pacasmayo, Engie Peru, Ferreycorp, Graña y Montero, IFS, InRetail, Luz del Sur, Milpo and Volcan. Credicorp Capital Securities Inc. or its affiliates also expect to receive or intend to seek compensation, in the next 3 months, for investment banking services from the following company (ies): Davivienda, GEB, ISA, Aceros Arequipa, AIH, Alicorp, Buenaventura, Cementos Pacasmayo, Engie Peru, Ferreycorp, Graña y Montero, IFS, InRetail, Luz del Sur, Milpo and Volcan.

D. Other Compensation and Non-Investment Banking Activities

Credicorp Capital Securities Inc. or its affiliates currently provide or have provided, within the past 12 months, non-investment-banking securities-related services to the following company(ies): Banco de Chile, BCI, Copec, ItauCorpbanca, EISA, Falabella, Habitat,, Santander, SMU, Hites, Avianca, Banco de Bogota, Bancolombia, BVC, Cemargos, Davivienda, Ecopetrol, EEB, ETB, Exito, Grupo Argos, Grupo Sura, ISA, Nutresa, and Promigas.

24 Credicorp Capital Securities Inc. or its affiliates also have received compensation, within the past 12 months, for non-investment-banking securities-related services from the following company(ies): Banco de Chile, BCI, Copec, ItauCorpbanca, EISA, Falabella, Habitat,, Santander, SMU, Hites, Avianca, Banco de Bogota, Bancolombia, BVC, Cemargos, Davivienda, Ecopetrol, EEB, ETB, Exito, Grupo Argos, Grupo Sura, ISA, Nutresa, and Promigas. Credicorp Capital Securities Inc. or its affiliates currently provides or have provided, within the past 12 months, non-securities-related services to the following company(ies): Banco de Chile, BCI, ItauCorpbanca, Forus, Habitat, LATAM, Santander, SK, Banco de Bogota, Bancolombia, Davivienda, Aceros Arequipa, AIH, Alicorp, Cementos Pacasmayo, Cerro Verde, Enel Dx Peru, Enel Gx Peru, Engie Peru, Ferreycorp, Graña y Montero, Luz del Sur, Milpo, and Unacem. Credicorp Capital Securities Inc. or its affiliates also have received compensation, within the past 12 months, for non-securities services from the following company(ies): Banco de Chile, BCI, ItauCorpbanca, Forus, Habitat, LATAM, Santander, SK, Banco de Bogota, Bancolombia, Davivienda, Aceros Arequipa, AIH, Alicorp, Cementos Pacasmayo, Cerro Verde, Enel Dx Peru, Enel Gx Peru, Engie Peru, Ferreycorp, Graña y Montero, Luz del Sur, Milpo, and Unacem. E. Market Making Cedicorp Capital Securities Inc. or its affiliates act as market maker in the following company(ies): Almendral, Besalco, Invercap, Masisa, Quiñenco, Ripley, Grupo Security, SM SAAM, Enjoy, BVC, EEB, ETB, Alicorp, Cementos Pacasmayo, Engie Energia Peru and Ferreycorp. F. Rating System Stock ratings are based on the analyst’s expectation of the stock’s total return during the twelve to eighteen months following assignment of the rating. This view is based on the target price, set as described below, and on the analyst’s opinion, general market conditions and economic developments. Buy: Expected returns of 5 percentage points or more in excess over the expected return of the local index, over the next 12-18 months. Hold: Expected returns of +/- 5% in excess/below the expected return of the local index over the next 12-18 months. Underperform: Expected to underperform the local index by 5 percentage points or more over the next 12-18 months. Under Review: Company coverage is under review. The IPSA, COLCAP and IGBVL indexes are the selective equity indexes calculated by the Bolsa de Comercio de Santiago, the Bolsa de Valores de Colombia, and the Bolsa de Valores de Lima, respectively. In making a recommendation, the analyst compares the target price with the actual share price, and compares the resulting expected return for the IPSA, the COLCAP, and/or the SPBVL indexes, as estimated by Credicorp Capital S.A. Corredores de Bolsa, Credicorp Capital Colombia Sociedad Comisionista de Bolsa, and/or CredicorpCapital Peru S.A, and then makes a recommendation derived from the difference in upside potential between the shares and the respective index. G. Distribution of Ratings

Buy Hold Underperform Restricted / UR

Companies covered with this rating 36% 46% 6% 13%

Compensation for investment banking 40% 31% 25% 0% services in the past 12 months*

*Percentage of investment banking clients in each rating category. H. Price Target Unless otherwise stated in the text of this report, target prices in this report are based on either a discounted cash flow valuation or comparison of valuation ratios with companies seen by the analyst as comparable or a combination of the two methods. The result of this fundamental valuation is adjusted to reflect the analyst’s views on the likely course of investor sentiment. Whichever valuation method is used there is a significant risk that the target price will not be achieved within the expected timeframe. Risk factors include unforeseen changes in competitive pressures or in the level of demand for the company’s products. Such demand variations may result from changes in technology, in the overall level of economic activity or, in some cases, in fashion. Valuations may also be affected by changes in taxation, in exchange rates and, in certain industries, in regulations. Investment in overseas markets and instruments such as ADRs can result in increased risk from factors such as exchange rates, exchange controls, taxation, and political and social conditions. This discussion of valuation methods and risk factors is not comprehensive – further information is available upon request.

25 II.ADDITIONAL DISCLOSURES

This product is not for retail clients or private individuals.

The information contained in this publication was obtained from various publicly available sources believed to be reliable, but has not been independently verified by the companies jointly referred as Credicorp Capital, therefore they do not warrant the completeness or accuracy of such information and does not accept any liability with respect to the accuracy or completeness of such information, except to the extent required by applicable law. This publication is a brief summary and does not purport to contain all available information on the subjects covered. Further information may be available on request. This report may not be reproduced for further publication unless the source is quoted. This publication is for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any securities, or as an invitation, inducement or intermediation for the sale, subscription or purchase of any securities, or for engaging in any other transaction. This publication is not for private individuals.

Any opinions, projections, forecasts or estimates in this report are those of the author only, who has acted with a high degree of expertise. They reflect only the current views of the author at the date of this report and are subject to change without notice. The companies jointly referred to as Credicorp Capital have no obligation to update, modify or amend this publication or to otherwise notify a reader or recipient of this publication in the event that any matter, opinion, projection, forecast or estimate contained herein, changes or subsequently becomes inaccurate, or if research on the subject company is withdrawn. The analysis, opinions, projections, forecasts and estimates expressed in this report were in no way affected or influenced by the issuer. The author of this publication benefits financially from the overall success of Credicorp Capital. The investments referred to in this publication may not be suitable for all recipients. Recipients are urged to base their investment decisions upon their own appropriate investigations that they deem necessary. Any loss or other consequence arising from the use of the material contained in this publication shall be the sole and exclusive responsibility of the investor and Credicorp Capital accepts no liability for any such loss or consequence. In the event of any doubt about any investment, recipients should contact their own investment, legal and/or tax advisers to seek advice regarding the appropriateness of investing. Some of the investments mentioned in this publication may not be readily liquid investments. Consequently it may be difficult to sell or realize such investments. The past is not necessarily a guide to future performance of an investment. The value of investments and the income derived from them may fall as well as rise and investors may not get back the amount invested. Some investments discussed in this publication may have a high level of volatility. High volatility investments may experience sudden and large falls in their value which may cause losses. International investing includes risks related to political and economic uncertainties of foreign countries, as well as currency risk.

To the extent permitted by applicable law, no liability whatsoever is accepted for any direct or consequential loss, damages, costs or prejudices whatsoever arising from the use of this publication or its contents.

This report may not be independent of Credicorp Capital’s proprietary interests. Credicorp Capital trades the securities covered in this report for its own account and on a discretionary basis on behalf of certain clients. Such trading interests may be contrary to the recommendation(s) offered in this report

Credicorp Capital (and its affiliates) has implemented written procedures designed to identify and manage potential conflicts of interest that arise in connection with its research business, which are available upon request. The Credicorp Capital research analysts and other staff involved in issuing and disseminating research reports operate independently of Credicorp Capital’s Investment Banking business. Information barriers and procedures are in place between the research analysts and staff involved in securities trading for the account of Credicorp Capital or clients to ensure that price sensitive information is handled according to applicable laws and regulations.

26 Credicorp Capital Securities Inc., is a wholly owned subsidiary of Credicorp Capital Ltd.

Nothing herein excludes or restricts any duty or liability to a customer that Credicorp Capital Securities Inc. have under applicable law. Investment products provided by or through Credicorp Capital Securities Inc. are not insured by the Federal Deposit Insurance Corporation and are not deposits or other obligations of any insured depository institution, may lose value and are not guaranteed by the entity that published the research as disclosed on the front page and are not guaranteed by Credicorp Capital Securities Inc.

Investing in non-U.S. Securities may entail certain risks. The securities referred to in this report and non-U.S. issuers may not be registered under the U.S. Securities Act of 1933, as amended, and the issuer of such securities may not be subject to U.S. reporting and/or other requirements. Rule 144A securities may be offered or sold only to persons in the U.S. who are Qualified Institutional Buyers within the meaning of Rule 144A under the Securities Act. The information available about non-U.S. companies may be limited, and non-U.S. companies are generally not subject to the same uniform auditing and reporting standards as U.S. companies. Securities of some non-U.S. companies may not be as liquid as securities of comparable U.S. companies. Securities discussed herein may be rated below investment grade and should therefore only be considered for inclusion in accounts qualified for speculative investment.

Analysts employed by one of the companies jointly referred to as Credicorp Capital, all of which are non-U.S. broker-dealers, are not required to take the FINRA analyst exam. The information contained in this report is intended solely for certain "major U.S. institutional investors" and may not be used or relied upon by any other person for any purpose. Such information is provided for informational purposes only and does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of 1933, as amended, or under any other U.S. federal or state securities laws, rules or regulations. The investment opportunities discussed in this report may be unsuitable for certain investors depending on their specific investment objectives, risk tolerance and financial position.

In jurisdictions where Credicorp Capital Securities Inc. is not registered or licensed to trade in securities, or other financial products, transactions may be executed only in accordance with applicable law and legislation, which may vary from jurisdiction to jurisdiction and which may require that a transaction be made in accordance with applicable exemptions from registration or licensing requirements.

The information in this publication is based on sources believed to be reliable, but Credicorp Capital Securities Inc. does not make any representation with respect to its completeness or accuracy. All opinions expressed herein reflect the author's judgment at the original time of publication, without regard to the date on which you may receive such information, and are subject to change without notice.

Credicorp Capital Securities Inc. or its affiliates may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. These publications reflect the different assumptions, views and analytical methods of the analysts who prepared them. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is provided in relation to future performance.

Credicorp Capital Securities Inc. and any company affiliated with it may, with respect to any securities discussed herein: (a) take a long or short position and buy or sell such securities; (b) act as investment and/or commercial bankers for issuers of such securities; (c) act as market makers for such securities; (d) serve on the board of any issuer of such securities; and (e) act as paid consultant or advisor to any issuer. The information contained herein may include forward-looking statements within the meaning of U.S. federal securities laws that are subject to risks and uncertainties. Factors that could cause a company's actual results and financial condition to differ from expectations include, without limitation: political uncertainty, changes in general economic conditions that adversely affect the level of demand for the company's products or services, changes in foreign exchange markets, changes in international and domestic financial markets and in the competitive environment, and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their entirety by this cautionary statement.

Other countries: Laws and regulations of other countries may also restrict the distribution of this report. Persons in possession of this document should inform themselves about possible legal restrictions and observe them accordingly.

27 CONTACT LIST

ANDEAN RESEARCH TEAM SALES & TRADING

Daniel Velandia, CFA Felipe García Head of Research & Chief Economist Head of Sales & Trading [email protected] [email protected] # (571) 339 4400 Ext 1505 # (571) 339 4400 Ext. 1132

EQUITY RESEARCH EQUITY SALES & TRADING

Carolina Ratto Mallie Andre Suaid Head of Equity Research - Retail Head Equities Regional [email protected] [email protected] # (562) 2446 1768

CHILE PERU COLOMBIA CHILE PERU COLOMBIA

Tomás Sanhueza Daniel Córdova Sebastián Gallego, CFA René Ossa Rodrigo Zavala Juan A. Jiménez Head of Equity Research - Consumer & Head of Equity Research Peru Head of Equity Research - Banks Head of Equity Head of Equity - Peru Head of International Equity Sales Transport. [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] # (562) 2446 1751 # (511) 416 3333 Ext 33052 # (571) 339 4400 Ext 1594 # (562) 2651 9324 # (511) 313 2918 Ext 36044 # (571) 339 4400 Ext 1701

Steffania Mosquera German Barousse Renzo Castillo Santiago Castro Ezequiel Fernández Luis Vicente Senior Analyst: Cement & Construction, Vice President Equity Sales Equities Sales International Sales & Trading VP Utilities Senior Analyst: Mining & Utilities Non Bank financials [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] # (562) 2450 1637 # (511) 416 3333 Ext 36167 # (571) 339 4400 Ext 1344 # (562) 2651 9344 # (511) 416 3333 Ext 37854 # (571) 339 4400 Ext 1025 Ursula Mitterhofer Maria Fernanda Luna Credicorp Capital Securities INC Andrés Cereceda Juan Pablo Brosset Daniel Mora Senior Associate Sales & Trading Equities Sales Associate: Pulp & Paper, Materials, Healthcare, Pension Funds Analyst: Cement & Construction Analyst [email protected] [email protected] [email protected] [email protected] [email protected] # (562) 2450 1613 # (511) 416 3333 Ext 36182 Rafael Solis # (562) 2446 1798 # (511) 416 3333 Ext 36018 # (571) 339 4400 Ext 1609 Institutional Equity Sales Cristóbal Grez Credicorp Capital UK Ltd. [email protected] Joel Lederman Nicolas Erazo Associate Equity Sales # (786) 999 1619 Associate - Retail Analyst [email protected] Marilyn Macdonald [email protected] [email protected] # (562) 2450 1629 International Equity Sales David Crummy # (562) 2651 9332 # (571) 339 4400 Ext 1365 [email protected] Equity Sales Trader Ana María Bauzá # (4477) 7151 5855 [email protected] Felipe Navarro Corporate Access # (786) 999 1618 Senior Analyst: Construction, Industrial & Ports [email protected] [email protected] # (562) 2450 1609 # (562) 2450 1688

Macarena Ossa Analyst [email protected] # (562) 2450 1694

FIXED INCOME & ECONOMICS RESEARCH FIXED INCOME SALES & TRADING

CHILE PERU COLOMBIA Andrés Nariño Alfredo Bejar Director Sales Offshore Head of International FI Josefina Valdivia Cynthia Huaccha Camilo A. Durán [email protected] [email protected] Head of Fixed Income Fixed Income Associate Macro Analyst # (571) 339-4400 Ext. 1459 # (511) 205 9190 Ext 36148 [email protected] chuaccha@credicorpcapital [email protected] # (562) 2651 9308 # (511) 416 3333 Ext 37946 # (5511) 339 4400 Ext. 1383 CHILE PERU COLOMBIA

Ignacio Sabelle Guido Riquelme Evangeline Arapoglou Carlos Sanchez Fixed Income Analyst Head of Sales Head of international FI Sales Head of Fixed Income [email protected] [email protected] [email protected] [email protected] # (562) 2651 9368 # (562) 2446 1712 # (511) 416 3333 Ext 36099 # (571) 323 9154

Lorena Palomeque Juan Francisco Mas Andrés Valderrama Gustavo Trujillo Senior Economist Fixed Income Sales Fixed Income Sales Head of Sales [email protected] [email protected] [email protected] [email protected] # (562) 2651 9385 # (562) 2446 1720 # (511) 416 3333 Ext 40352 # (571) 323 9252

Rafael Gaete Natalia Jurado Andrés Agudelo Local Fixed Income Sales Fixed Income Sales Fixed Income Sales [email protected] [email protected] [email protected] # (562) 2651 9336 # (511) 416 3333 Ext 36027 # (571) 339 4400 Ext 1180

Diego Hidalgo Guillermo Arana Emilio Luna Local Fixed Income Sales Fixed Income Sales Fixed Income Sales [email protected] [email protected] [email protected] # (562) 2450 1693 # (511) 313 2902 Ext. 36144 # (571) 339 4400

Lizeth Espiritu Patricio Luza Fixed Income Sales Fixed Income Sales [email protected] [email protected] Credicorp Capital Securities INC # (562) 2450 1619 # (511) 416 3333 Ext. 36168

Carla Tejada Jhonathan Rico Fixed Income Analyst Fixed Income Trader [email protected] [email protected] # (511) 416 3333 Ext. 36143 # 1 (786) 9991614

Ana Lucía Rondón Medina Sales Renta Fija Michael Tafur [email protected] Fixed Income # (511) 416 3333 Ext. 40339 [email protected] # 1 (786) 9991607

28