Banco Davivienda (PFDAVVNDA) Investor Update summary

Corporate structure transformation and share issuance

• Davivienda Group established as a holding company for all Banco Davivienda businesses, aiming to unify strengths and enable faster scaling.

• Ongoing share issuance allows Banco Davivienda shareholders to become shareholders of Davivienda Group, including preferred and minority common shareholders.

• Share exchange is on a one-to-one basis, with no new money being raised; controlling shareholders have already contributed their shares.

• The process is designed to optimize ownership structure, comply with regulations, and prepare for integration with Scotiabank.

Integration with Scotiabank and transaction structure

• Integration involves BNS contributing subsidiaries in Panama and Costa Rica, and transferring assets to Davivienda Group.

• New shares will be issued to BNS, resulting in BNS holding approximately 20.15% of Davivienda Group, with current shareholders owning the remaining 79.85%.

• The transaction is expected to increase Davivienda Group's equity by 39% to COP 22.8 trillion, unlocking a one-time gain of 11% in intrinsic value for participating shareholders.

Financial profile, synergies, and growth outlook

• The combined entity will have a more diversified operation, with market share increases in Colombia, Costa Rica, and Panama.

• Projected annual operational savings of COP 900 billion to COP 1.2 trillion starting in 2028, with integration costs of COP 600-700 billion mainly incurred in 2026-2027.

• Expected cost-to-income ratio of 43-45% and ROE of 14-16% by 2028-2029.

• Synergies will be captured through technology, network, procurement, and operational efficiencies, with additional opportunities in SME, corporate, and wealth management segments.