Grupo Supervielle S.A. Annual Report 2018

FY2018 Annual Report · Grupo Supervielle S.A.

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Buenos Aires, March 7, 2019

LETTER FROM THE CHAIRMAN

To the Shareholders:

As Chairman of the Board of Directors, I hereby submit the Annual Report of Grupo Supervielle
S.A. corresponding to the year ended December 31, 2018.

By way of introduction I would like to make an overview of the macroeconomic context during
the period under analysis.

According to recent International Monetary Fund (IMF) estimates, the world economy grew by
3.7% in 2018, a slight deceleration as compared to the 3.8% growth recorded in 2017. This
growth deceleration occurred in a context of decrease in the growth rate in world trade due to the
US-China trade conflict, the rise of international interest rates, particularly in the USA, and the
financial crisis in Turkey and Argentina, which gave rise to doubt with regard to growth in such
year. Regarding emerging economies, in the Latin America and Caribbean region, the growth
estimated by the IMF was 1.1% in 2018.

Commodities maintained the positive trend recorded from mid-2017 to the first half of 2018 to
then go down as a result of the US dollar strengthening in such stage. Thus, they ended 2018 on
average in a price level 12.4% lower than that at the close of 2017. In particular, the prices of
commodities exported by Argentina fell by 1.7%

During the year, the US Federal Reserve continued with the upward rate cycle which began in
December 2015, increasing on three occasions its reference interest rate (March, June and
December) by 0.25% until reaching 2.5% per annum with a lower limit of 2.25%. However, the
level reached remains too low as compared to historic values. Stock markets showed a marked
volatility featured in particular by the Federal Reserve rate policy and by capital movements from
emerging to developed countries. Thus, according to the MSCI index, shares went down by
10.4% at global level (in 2017 they had gone up by 20%), while emerging markets declined
16.6%.

During 2018, practically all the currencies of Argentina’s business partners depreciated as
compared to the US dollar in nominal terms, which boosted even more the Argentine peso's
depreciation during the year.

At national level, 2018 was featured by the discrepancy between the market expectations at the
close of 2017 and what finally happened during the year. In the BCRA’s Market Expectations
Survey (REM) of November 2017, economists estimated that the inflation rate for the year
would be 16.6%, the Currency Policy Rate (TPM) would end at 22%, the Nominal Exchange
Rate (TCN) would close at $20.3 and the economy would grow by 3.1%. Final data were far from
expected.

Part of the explanation for such discrepancy lies on the international context described above
which, despite the expectations at the beginning of the year, changed dramatically as compared to
what had been observed during 2016 and 2017. This change made Argentina suffer more than
the rest of emerging countries as a result of its vulnerability due to its high twin deficits (tax and
checking account deficits) which reached historical maximums, with the need of foreign currency
short term financing. This change in the international context, together with the rise in oil prices
and the increase of country risk, led to the adoption of the decision to seek assistance from the
International Monetary Fund (IMF) so as to receive preventive financing, leading to a new
agreement for US$57,000 million, in exchange of which the Government agreed to fiscal balance
targets, which included meeting the primary balance target in 2019 and a primary tax surplus of
1% in GDP terms in 2020.

The handling of the monetary policy did not contribute to mitigating the complex situation,
which was observed in the pressure repeatedly exerted on the exchange market at the beginning
of April. Its effects could not be counteracted with interest rate rises and BCRA interventions.
Finally, a new monetary and exchange program was implemented aimed at having monetary

aggregates as anchor, leaving aside inflation targets, as agreed in the Memorandum of
Understanding entered into with the IMF. The new monetary and exchange plan included the
commitment to not increase the monetary base until June 2019, except for December 2018 and
June 2019, which are the months when there is an increase in the demand of money. The
instrument used to implement this policy is the daily auction of Letras de Liquidez (LELIQ)
[Liquidity Bills] with banks, through which the BCRA establishes a bidding objective in line with
the monetary base; the interest rate is the result of such auction (which became the Monetary
Policy Rate, TPM). The new monetary policy scheme was supplemented by the determination of
exchange rate intervention and non-intervention zones applicable to the nominal exchange rate
(TCN). Said limits were adjusted daily at a monthly 3% rate during the last quarter of 2018.
Above the non-intervention zone, the BCRA may sell up to US$150 million per day to generate
an additional monetary contraction when the peso weakens. Conversely, the BCRA may buy
foreign currency in case the peso appreciates and is below the non-intervention zone. Within that
zone, the exchange rate may fluctuate freely.

As regards the activity level, the economy ended 2018 in recession, with an accumulated fall of
2.2% as of November of such year. The activity level was affected, in addition, by a severe
draught which significantly reduced agricultural sector contributions. This contraction can be
compared to the 2.9% expansion in 2017. International reserves at the BCRA rose by US$10,751
million, ending the year with a stock of US$65,806 million. However, this year was marked by the
strong reduction of international reserves on several occasions as a result of the sale of foreign
currency to contain the devaluation, which reduction was later set off by loans mainly from the
IMF. The nominal exchange rate at the end of 2018 was $37.8, up from $19.03, which accounts
for a devaluation of 101.4% as compared to the prior year closing. Throughout 2018 fiscal
balance remained a key issue for the administration which had to accelerate the fiscal deficit
reduction in pursuance of the commitment assumed with the IMF to have a primary fiscal deficit
of 2.7% in 2018. This year closed with a fiscal deficit of 2.4% vis-a-vis the GDP, reducing the
primary deficit by 1.4 p.p over the previous year and exceeding proposed targets. The inflation
rate showed a 47.6% increase as compared to the 24.8% inflation rate recorded in 2017.

As regards the banking industry’s evolution, private sector total deposits in the financial system
increased by 61.7% in 2018, well above the growth of loans. Deposits in Pesos increased by 41%,
while deposits in US dollars but measured in Pesos increased by 120.9%, as a result partly of the
rise of the nominal exchange rate and measured in US dollars, deposits increased 9.7%. On the
other hand, total loans to the private sector finally grew only 33% in the year, well below the
inflation level. Loans in pesos to the private sector rose 17% as a result of high interest rates and
economic recession.

Grupo Supervielle ended 2018 with a net income attributable to owners of $2,568 million, a
comprehensive income attributable to owners of $3,030 million, assets for $141,116 million,
loans and leasing for $80,171 million, deposits for $94,906 million and an attributable
shareholders’ equity of $17,156 million.

Return on equity was of 19.5%. The attributable comprehensive income was 61% higher than the
comparable 2017 result.

Throughout 2018, Grupo Supervielle, through its subsidiaries, increased its credit generation in
line with the industry’s growth levels, while its deposits generation was above growth levels of the
industry average.

The Corporate Banking portfolio recorded a strong growth in the first quarter of 2018 to then
decelerate in the ensuing quarters due to the rise in the interest rate and the evolution of
recession.

During the year the Oil&Gas team was completed with a view to developing the Oil and Gas
industry value chain, serving mainly SMEs suppliers of such value chain.

Under the customer relations management guidelines, we continued growing in the Plan Sueldo
portfolio, ranking second among private banks in net customer growth in the year.

The SMEs customer generation project continued both in the SMEs and Entrepreneurs & SMEs
segments.

The Entrepreneurs and SMEs segment continued with its development plan although in a more
challenging macroeconomic context than that of SMEs. During the year the subsegments
Franchises and Transportation launched in 2017 consolidated and a new specific value
proposition was generated oriented to the health subsegment.

Retail Banking continued offering a wide array of financial products and services aimed at
meeting the needs of their individual customers and designing tailored products. The customer
service model seeks to achieve maximum efficiency, preserving contact and the customized
assistance required by strategic segments; after analyzing the requirements of each customer,
products and services are tailored to their needs, through a sub-segmentation of customers that
provides a service level suitable to each profile.

Additionally, in line with the path traced in the previous year, substantial changes were promoted
in Service Centers, modernizing daily operations and meeting the needs of senior citizens. With
the implementation and expansion of automated solutions for queries and cash withdrawals that
include biometric identification, the banking sector has paved the way for the operation of future
generations of senior citizens.

With a renewed offer, special lines to suit the needs of the different segments and to digital
channel sales, the placement of personal loans was leveraged.

In addition, in view of the market expansion generated following the establishment of UVA
Mortgage Loans, a communicational and management strategy was launched to position the bank
at the top in order to increase its market share. To such end, the Bank posted banners in one of
the major real estate portals of Argentina and entered into agreements with brokers, large
developers and realtors to strengthen lead generation. UVA Mortgage Loans started in 2018 with
a strong dynamism, positioning Banco Supervielle among the first 5 private banks in terms of
placement of these loans. However, the peso devaluation, the rise of inflation and the
macroeconomic uncertyainty had a negative impact on this product.

On the other hand, the Bank restructured Pledge Loans with the purchase of Mila and the
expansion of marketing channels, through the incorporation of several car dealers, focusing
mainly on pricing redefinition, a new initial cross selling model for borrowers, and the
commencement, by the end of the year, with the transactions for UVA loans.

In 2018 the network's area of influence was expanded with the opening of three new branches.
These openings sought to identify those locations leveraging our commercial strategy and were
intended to consolidate the Bank’s presence in areas with high density of stores and achieve full
coverage in commercial corridors where SMEs are established. These openings include the first
Supervielle branch in the Province of Neuquén.

As regards the consumer financing segment developed mainly through Cordial Compañía
Financiera, the difficult macroeconomic context had a negative impact on its customer segment
and a decision was made in March to curb the growth of this segment. In order to mitigate the
risk, strong adjustments were introduced in credit policies, increasing cut-off points and
restricting the borrowing capacity of customers and leads. During the second quarter of 2018 two
additional negative effects were added: rising bank funding rates and a strong decrease in
demand, which affected the profitability of the different channels. Thus, in August, the consumer
segment was restructured with a view to adapting it to a new reality.

Cordial Servicios, our subsidiary dedicated to marketing non financial products, now part of the
consumer division, continued consolidating its value propositions during 2018, offering a wide
array of products, although it also suffered the reduction of its sales as a result of economic
recession. Through the telephone channel we continued to offer health prepaid services and
catalogue sale of electronic and home appliances. In the digital channel, the home appliances,
technology, home and furniture, sports, wellness and beauty, perfumes, tires and accessories
categories were marketed through Tienda Supervielle marketplace. The Tienda Supervielle travel

category continued growing as a sales channel and developing new products. In November 2018,
Tienda Supervielle Viajes became a part of the rewards program of Banco Supervielle, becoming
the major supplier of flights and hotels.

During 2018, Banco Supervielle created the customer centric organization-wide Transformation
area, which encompasses end-to-end digital processes. In addition, due to digital innovation, new
businesses, processes and technologies may be explored to establish the vision of a bank of the
future. Focused on the Bank’s efficiency and customer experience, digital strategy is implemented
by segment and by channel. Continuous improvement of information governance also allows
measuring the status and degree of advance and, particularly accelerate transformation.
Transformation involves the use of new working methodologies, new technologies and a strong
cultural change within the organization. Agile methodologies arise in response to current needs,
where the willingness to change and the prompt delivery of value are a competitive advantage.
Under this working methodology, independent, highly efficient work teams are formed with
short turnaround times.

SAM, our mutual funds manager, reduced by 7% the amount of assets managed at the end of
2018 as compared to the prior year showing a similar behavior to that observed in the mutual
funds industry, which was one of the financial industries most affected by the foreign exchange
crisis in Argentina.

As regards insurance, in its on-going process of introduction of new products for its different
customer segments, in 2018 Grupo Supervielle through Supervielle Seguros began to market the
Integral Insurance policies for Entreprenuers and SMEs.

In May 2018, within Grupo Supervielle’s initiatives of selective acquisitions to supplement its
strategy, we incorporated two new businesses. The first acquisition was Micro Lending S.A.
(MILA), a company specialized in the car loans financing, which allows Grupo Supervielle to
supplement the offer and play a relevant role in the attractive car loans market for the acquisition
of new and used automobiles - which market has a financing level of only 8% of the sales total in
Argentina - which creates cross-selling opportunities in all Grupo Supervielle companies. We
subsequently purchased InvertirOnline, a broker with a platform specialized in online trading of
stocks, bonds and derivatives, which is among the top five companies in the online broker
segment in Argentina, and a referent within the Fintech sector in the country. InvertirOnline
provides at the same time online training services and advice to its customers on finance and
investments, promoting the adoption of responsible investment decisions in line with customers’
knowledge and risk appetite.

Work continued on our Corporate Governance model, incorporating the best international
practices. Thus, during the year, we separated the roles of Chairman and CEO, focusing on the
CEO’s role on executing the Company’s Digital Transformation strategy, driving growth and
enhancing efficiency and profitability. As Chairman I will remain fully dedicated to Grupo
Supervielle setting the strategic direction for long-term success of the busines.

Grupo Supervielle has become an important referent of the Argentine financial system with a
high visibility potential in its community actions. Its social commitment has grown on a sustained
basis and, at present, Corporate Social Responsibility has a significant place in Grupo
Supervielle's agenda. In 2018 we continued focusing on our social and community activities with
20 programs grouped in 4 main lines of action: Education, Childhood, Senior Citizens, and
Institutional Strengthening. Grupo Supervielle issues on a yearly basis the Sustainability Report
following the guidelines and standards established by the Global Reporting Initiative (GRI). The
report surveys the achievements made and the challenges ahead in its ongoing sustainability
commitment, describing the performance of the different companies controlled by Grupo
Supervielle in the economic, social and environmental areas.

As regards the international context this year looks bleak as a lower economic growth is expected
than in 2018. Regarding Argentina, economic consulting firms gathered in the BCRA’s Market
Expectations Survey expect a negative economic growth rate of 1.2% as a result of the 2018
activity collapse but, as from the second quarter a positive rate of 1.5% is expected, resuming the
growth dynamics. Likewise, the inflation rate is expected to fall from 47.6% (at the end of the
year) to 29.0% while the Nominal Exchange Rate is expected to be $48.0, i.e. a year-on-year
depreciation of 26.8%.

We expect the recovery of the financial system after the 2018 deceleration, as the economy grows
and the inflation rate goes down in a context of lower volatility and greater confidence in the
local currency. Finally, the current high liquidity level, together with the good performance of
deposits in the last part of the year will, following the recovery of the loan demand, accelerate the
process of savings channeling to sustain and accelerate the economic recovery which will allow
the sustainable development and improvement of the quality of life of people.

In short, we are moderately optimistic regarding the outlook for the year as the Government is
launching a program for structural fiscal deficit reduction, a key cause of the recurring crises in
Argentina. Our estimates are that challenges will continue at the macroeconomic level during the
first half, but later there will be a gradual improvement. The next presidential elections may pose
a certain degree of uncertainty. In this context, our approach remains loan origination as a factor
to boost the real economy and preservation of a good credit quality. Franchise is well positioned
and we trust in our capacity to resume growth in a better macroeconomic context.

I am proud to share with you that we have received two awards during the year. In October,
Grupo Supervielle received the First Prize of the XII Edition of the Enrique Shaw Award of the
Asociación Cristiana de Dirigentes de Empresa (ACDE) “Towards a Business with a Human
Face” (Category Large Companies) for the Abuelos En Red (AER) Digital Inclusion Program.
Then, in November, Grupo Supervielle received the “Transparency” Award from the Inter-
American Council of Commerce and Production (IACCP) in alliance with the Buenos Aires
Stock Exchange and Alliance for Integrity. Finally, I take great pleasure in announcing that during
2018, Grupo Supervielle became part of the first Sustainability Stock Index of the Argentine
Market created by BYMA together with the Inter-American Development Bank, which evaluates
the performance of issuers in the four ESG-D pillars, based on the information reported and
available to the general public.

Finally, I would like to especially thank our teams, suppliers and customers, key players in our
past, present and future. To all, on behalf of the board, thank you for your support and
confidence.

Julio Patricio Supervielle
Chairman

LIST OF OFFICERS

Board of Directors
Chairman
Julio Patricio Supervielle
First Vice Chairman
Jorge Oscar Ramírez
Second Vice Chairman
Emérico Alejandro Stengel
Directors
Atilio María Dell ‘Oro Maini
Richard Guy Gluzman
Laurence Nicole Mengin de Loyer
Gabriela Macagni
Jorge Mocetti

Members of the Statutory Audit Committee

Statutory Auditors
Enrique José Barreiro
Carlos Alberto Asato
Valeria Del Bono Lonardi

Alternate Statutory Auditors
Carlos Enrique Lose
Roberto Anibal Boggiano
Carlos Alfredo Ojeda

Certifying Accountant of the Financial Statements for the fiscal year ended 12/31/2018

Sebastián Morazzo
Price Waterhouse & Co. S.R.L.

CEO
Jorge Oscar Ramírez

CFO
Alejandra Gladis Naughton

Corporate Management reporting to the CEO

Chief of Legal Affairs and AML
Sergio Gabriel Gabai

Chief Credit Officer
Pablo Di Salvo

Chief of Human Resources
Santiago Enrique Batlle

Chief of Central Services & Supply Management
Claudia Silvia Andretto

Chief Officer of Technology & Operations
Marcelo Vivanco

Corporate Management reporting to the Board of Directors

CRO
Javier Conigliaro

Head of Internal Audit
To be appointed. Hugo Roland and Valeria Duthu, both Executive Managers of the internal
audit team, temporarily hold the position together

Compliance Officer
Moira Almar

Chief Executive Officers of Grupo Supervielle Subsidiaries:

Banco Supervielle 1
Jorge Oscar Ramirez

Cordial Compañía Financiera / Tarjeta Automática / Micro Lending S.A. / Espacio Cordial
de Servicios (Consumer segment)
Juan Martín Monteverdi

Supervielle Seguros
Diego Squartini

Supervielle Asset Management
Guillermo Guichandut

InvertirOnline
Jose Vignoli

1 As of December 31, 2018, Nerio Alfredo Peitiado was the CEO until he resigned in February 2019 and such position was filled
by Jorge Oscar Ramirez, as approved by BCRA on February 8, 2019.

I.- About Grupo Supervielle

Table of Contents

II.- Main Indicators of the Consolidated Balance Sheet

III.- Annual Report

IV.- Report on the Degree of Compliance with the Corporate Governance Code

I.- ABOUT GRUPO SUPERVIELLE

Grupo Supervielle S.A. is an Argentine local financial services company and the controlling
company of the 7th largest private bank of Argentina in terms of loans, and the 10th bank if we
also consider public banks. It has a long history in the Argentine financial system with 130 years
of operation in the country and a leading competitive position in certain strategic market
segments. Grupo Supervielle S.A. offers financial and non-financial products and services,
especially designed to cover the diferent needs of its customers through multiple platforms and
brands. Grupo Supervielle operates through different segments: Retail Banking, Corporate
Banking, Treasury, Consumer Financing, Insurance and Asset Management and other services.

As of December 31, 2018, Supervielle’s assets amounted to AR$141,115.5 million in accordance
with Argentine Banking GAAP.. As of the date of this report, Supervielle had 344 access points
and approximately 2 million active customers.

Grupo Supervielle’s shares are listed on and traded in Bolsas y Mercados Argentinos (BYMA)
and in the New York Stock Exchange (NYSE) since May 19, 2016. As of December 31, 2018,
Grupo Supervielle had 456,722,322 issued shares, and floating shares in the capital markets
represented 65% of its capital stock.

Grupo Supervielle is a corporation organized in Argentina in 1979 that operates as a financial
services holding of the following financial services subsidiaries: a bank, Banco Supervielle S.A.; a
consumer financing entity, Cordial Compañía Financiera; a consumer financing company, Tarjeta
Automática; an asset management company, Supervielle Asset Management (SAM); the recently
acquired company specialized in car financing, Micro Lending, and an online trading broker,
InvertirOnline. Additionally, and based on its expertise and leadership in the financial services
business, Grupo Supervielle aims at reinforcing its commercial offer for its customers and has
expanded its offer in the last years with other business segments such as marketing of non-
financial products through its controlled company Espacio Cordial de Servicios and its insurance
business through Supervielle Seguros. Finally, the portfolio is completed with Sofital S.A.F. e I.I.,
a company mainly involved in the holding of interests in Grupo Supervielle companies.

II.- MAIN INDICATORS

Grupo Supervielle S.A., Consolidated

MAIN INDICATORS
Net income for the period attributable to the owners of the
controlling Company
Comprehensive income for the period attributable to the
owners of the controlling company
Assets (in thousands of Pesos)
Liabilities (in thousands of Pesos)
Shareholders’ Equity (in thousands of Pesos)
Shareholders’ Equity attributable to the owners of the

Dec. 2018

Dec. 2017

Change%

2,567,569

1,819,842

41.1%

3,029,982
141,115,541
123,945,364
17,170,177
17,155,555

1,878,429
92,202,420
77,682,252
14,520,168
14,369,575

61.3%
53.0%
59.6%

19.4%

controlling company
Shareholders’ Equity attributable to non-controlling
interests
ROAE(1)
ROAA(2)
Net Income from services/ (Net Income from services +
Gross Financial Margin)(3)
Net Income from services/ Administrative Expenses(3)
Non-performing loans / total loans
Provisions / Non-performing loans

14,622
19.5%
2.6%

21.6%
38.0%
4.1%
100.0%

150,593
19.1%
2.7%

25.6%
41.9%
3.1%
88.0%

(1) Comprehensive income for the period attributable to the owners of the controlling Company divided by

the average shareholders’ equity, calculated on a daily basis

(2) Comprehensive income for the period attributable to the owners of the controlling Company divided by

the average assets, calculated on a daily basis

(3) Including Income from insurance

III.- ANNUAL REPORT

A. EVOLUTION OF THE ECONOMY AND THE FINANCIAL SYSTEM

A.1. Macroeconomic Context in 2018

i) International Scenario2

According to recent International Monetary Fund (IMF) estimates, the world economy grew by
3.7% in 2018, a slight deceleration as compared to the 3.8% growth recorded in 2017. This
economic expansion is the result of a 4.6% estimated growth in emerging countries and a 2.3%
estimated growth in developed countries. This growth deceleration occurred in a context of
decrease in the growth rate in world trade (4% in 2018 vs. 5.2% in 2017) due to the US-China
trade conflict, the rise of international interest rates, particularly in the USA, and the financial
crisis in Turkey and Argentina, which gave rise to doubt with regard to growth in such year.

Regarding emerging economies, in the Latin America and Caribbean region, the growth estimated
by the IMF was 1.1% in 2018, which represents a slight 0.2% fall as compared to 2017. On the
other hand, Brazil recorded an estimated 1.3% growth, an improvement over last year’s figure
(1.1%) in spite of the turmoil generated by the presidential elections and a difficult international
financial context.

After accelerating its economic growth rate, China would be decelerating again, from a 6.9%
expansion rate in 2017 to an estimated 6.6% in 2018. India, on the other hand, would be
accelerating from 6.7% in 2017 to 7.3% in 2018.

Developed countries decelerated their growth in 2018 (an estimated 2.3% over 2.4% recorded in
2017) even when an improvement was recorded in the performance of economic activities in the
USA with an estimated growth of 2.9% in 2018 (vs. 2.2% in 2017). On the other hand, the
Eurozone’s performance decelerated 0.6 p.p. (percentage points) to 1.8% due to the fact that its
main economies were affected both by an international context featured by less commercial
growth and by domestic affairs. By way of example, Germany and Spain recorded worse
performances than in 2017: 1.5% (vs. 2.5% in 2017) and 2.5% (vs. 3.0%), respectively. On the
other hand, France faced social turmoil due to the increase in fuel prices while Italy formed a
weak government coalition while attempting to fight its fiscal deficit (which is about 1.6%
according to the IMF). Thus, their growth rate for 2018 was an estimated 1.5% and 1%,
respectively, as compared to 2.3% and 1.6%, respectively, in 2017. Japan continues to be trapped
in its low inflation scenario with low growth rates and decelerated its 1.9% rate of last year to an
estimated 0.9%. The Brexit remains a burden to the United Kingdom economy which might
decelerate its economic expansion rate again to 1.4% from 1.8% in 2017 (2.2% in 2015).

2 Provisional data. The source used was the IMF World Economic Outlook, published in January 2019.

During 2018, practically all the currencies of Argentina’s business partners depreciated as
compared to the US dollar in nominal terms (except for the Japanese Yen and the Swiss Franc),
which boosted even more the Argentine peso's depreciation during the year. In addition, due to
tax and Payment Balance deficits, and within a context of capital flight from emerging countries,
the local currency suffered a greater punishment than that of its peers. In real terms the peso
depreciated 23.5% on average (and 35.5% year-on-year in December 2018) according to the
BCRA (Central Bank of Argentina)'s Multilateral Real Exchange Rate Index.

Commodities3 maintained the positive trend recorded from mid-2017 to the first half of 2018 to
then go down as a result of the US dollar strengthening in such stage. Thus, they ended 2018 on
average in a price level 12.4% lower than that at the close of 2017. In particular, the prices of
commodities exported by Argentina fell by 1.7% as compared to figures recorded by late 2017.
However, on average the commodities price index prepared by the BCRA went up 3.7%.

Stock markets showed a marked volatility featured in particular by the Federal Reserve rate policy
and by capital movements from emerging to developed countries4. Thus, according to the MSCI
index, shares went down by 10.4% at global level (in 2017 they had gone up by 20%). Emerging
markets reached a growth peak by the end of 2018 following the positive trend of 2017 to then
record a negative trend throughout the year and close with a 16.6% fall, impacted by the pace of
Federal Reserve interest rate rises.

ii) Argentine Economy

2018 was featured by the discrepancy between the market expectations at the close of 2017 and
what finally happened during the year. By way of example, in the BCRA’s Market Expectations
Survey (REM) of November 2017, economists estimated that the inflation rate for the year would
be 16.6%, the Currency Policy Rate (TPM) would end at 22%, the Nominal Exchange Rate
(TCN) would close at $20.3 and the economy would grow by 3.1%. Final data were far from
expected as can be seen below.

Part of the explanation for such discrepancy lies on the international context described above
which, despite the expectations at the beginning of the year, changed dramatically as compared to
what had been observed during 2016 and 2017. This change made Argentina suffer more than
the rest of emerging countries as a result of its vulnerability due to its high twin deficits (tax and
checking account deficits) which reached historical maximums, with the need of foreign currency
short term financing. This change in the international context, together with the rise in oil prices
and the increase of country risk, led to the adoption of the decision to seek assistance from the
International Monetary Fund (IMF) so as to receive preventive financing. The first Stand By
agreement was entered into on June 12, 2018. However, pressure on the exchange rate and the
increase in the country risk continued, leading to a new agreement with the IMF for credit
assistance, from the initially agreed upon US$50,000 million to US$57,000 million, including even
tougher targets than the tax balance target, which included meeting the primary balance target in
2019 and a primary tax surplus of 1% in GDP terms in 2020.

The handling of the monetary policy did not contribute to mitigating the complex situation,
which could be noticed in the pressure repeatedly exerted on the exchange market at the
beginning of April. At first, the idea was to counteract such effects with reference interest rate
rises and exchange rate interventions, which did not bring about the expected results. However,
as the situation worsened, on June 14, Federico Sturzenegger resigned to his position as BCRA
governor and was replaced by Luis Caputo (former Minister of Finance). Caputo’s management
sought to increase interest rate rises and foreign exchange interventions with constant increases
in legal maximum reserve requirements in order to control foreign exchange volatility.
Nevertheless, the expected results were never achieved and only three months after taking office,
Caputo resigned and was replaced by Guido Sandleris (former Secretary of Economic Policy of
the Ministry of Economy) who implemented a new monetary and foreign exchange program

3 According to Thomsom Reuters CRY index.
4 Taking as a reference the MSCI indices prepared by MSCI Inc.

aimed at having monetary aggregates as anchor, as agreed in the Memorandum of Understanding
entered into with the IMF.

Economic Activity

According to Instituto Nacional de Estadísticas y Censos [the National Statistics and Census Bureau]
(“INDEC”), the economy would end 2018 in recession, accumulating a 2.2% fall as of November
of such year. As regards the annual dynamics, the economic activity recorded a positive year-on-
year growth rate only in the first quarter (3.9%) and then negative rates in the second (-4%) and
third quarter (-3.5%). In contrast, the activity level in 2017 had marked a year-on-year average
2.9% expansion. According to REM, the annual average growth for 2018 would be -2.4%5.

Foreign Trade and Foreign Exchange Market

During 2018 the trade balance deficit amounted to US$3,820 million, which implies a drop as
compared to the US$8,309 million deficit of 2017. The change in the dynamics of the trade
balance is the result of the fall in the activity level which began as from mid-year, and of the
foreign exchange depreciation which improved the relative prices of exports vis-a-vis imports.
While exports increased 5.1% during the year, imports dropped 2.2%, recording a greater fall in
the last months (27.1% for the last month). Exports recorded a 0.5% fall caused by the drop in
sales of primary products and agricultural manufactured goods, which were affected by the
draught of the first months of the year. On the other hand, imports fell 6.5% due to the fall of
capital goods and vehicles.

As was the case in 2016 and 2017, international reserves at the BCRA rose by US$10,751 million,
ending the year with a stock of US$65,806 million. However, this year was marked by the strong
reduction of international reserves on several occasions as a result of the sale of foreign currency
to contain the devaluation, which reduction was later set off by loans mainly from the IMF. The
most relevant reduction events were on June 21, when international reserves reached a minimum
of US$48,478 million to then go up on the next day as a result of the first IMF disbursement, and
on October 29, when reserves reached a minimum again (US$47,867 million) to then rise again
on the next day, and in December, as a result of successive IMF disbursements and the Swap
entered into with China.

The nominal exchange rate at the end of 2018 was $37.8, up from $19.03, which accounts for a
devaluation of 101.4% as compared to the prior year closing. The year was marked by periods of
strong devaluation, the most relevant being those recorded in May (+20.6%), June (+15.7%) and
August (+35,8%), which forced the BCRA to intervene on a daily basis in the foreign exchange
market through sales of US$15,968 million with a view to containing the rise of the nominal
exchange rate, but no successful results were achieved.

Labor Market

In 2018, total wages grew by 29.7% year-on-year as a result of the 30.4% rise of the total number
of registered employees and of 27.2% of the private sector non-registered employees. On the
other hand, the wages of private sector registered employees grew by 30.4% and those of the
public sector by 30.3%. In all cases, wages grew well below inflation, thus causing the fall of real
wages.

The unemployment rate of the first, second and third quarter was 9.1%, 9.6% and 9%,
respectively, averaging 9.2% in the first 3 quarters of the year. Comparing the average
unemployment rates of the first three quarters of 2018, there was an increase of 50 basic points
(from 8.7% in 2017 to 9.2% in 2018). On the other hand, the activity rate increased from 46.3%
in the third quarter of 2017 to 46.7% in the third quarter of 2018.

Fiscal Balance

One of the critical aspects of the year was access to financing by the Federal Treasury. While at
the beginning of the year (with a country risk of 349 basis points at the end of 2017) the
Government managed to secure foreign financing for US$9,000 million, external and internal
shocks caused a constant increase of the country risk, which rose to 612 basic points (a 263 basic

5 REM as of November 2018.

point increase). This put an end to foreign financing and led to the execution of an agreement
with the IMF for the first time since 2005. Thus, on June 12, the first stand-by 36-month
agreement was entered into with the IMF, which established certain fiscal and monetary targets.
In exchange, the country obtained DEG6 35,379 million - equivalent to approximately US$50,000
million - the first disbursement being of approximately US$15,000 million on June 20 and then
US$2,900 million quarterly disbursements as from September, until June 2021, provided the
agreed upon targets are met. However, after the first disbursement, the government was forced
to renegotiate the IMF agreement due to the greater volatility, the rise in the nominal exchange
rate and the increase in the country risk to about 800 basic points by late August (811 basic
points at year end). On October 17, the Government entered into a second stand-by agreement
with the IMF increasing the agreement amount by DEG5,335 million (approximately US$7,100
million) reaching a total of US$57,000 million, in addition to the rescheduling of disbursements,
advancing funds until December 2018 for DEG9,600 million (approximately US$13,400 million)
reaching a total of US$28.400 million in the year, and DEG16,300 (approximately US$22,650
million) in 2019. At the end of 2019, 90% of the agreed amount will have been disbursed if all
targets have been achieved.

As a result of the IMF agreement, the Government accelerated the fiscal deficit reduction in
order to gain access to the IMF disbursements. In such regard, the Government committed to
having a primary fiscal deficit of 2.7% (as compared to the 2018 GDP), achieving the primary
fiscal balance target in 2019 and a primary fiscal surplus of 1%, as compared to the 2020 GDP.
Nicolás Dujovne, the Minister of Economy, announced on January 18, 2019 that the government
achieved the IMF target of 2.4% primary deficit as compared to the GDP, which was reduced by
1.4 p.p. as compared to the previous year. This was possible thanks to the rise in income during
the year by 30.2% while primary expenses rose to 22.4% due to the limits imposed to capital
expense (+1.1%) and other current expenses (+19.6%) which included, among other, discretional
transfers to the provinces. However, the financial deficit closed at 5.2% as compared to the PBI,
with a 0.8 percentage points decrease as compared to the primary deficit, due to the 72.9%
increase of interest rates during the year. Looking to 2019, the Government had the Argentine
Congress approve the national Budget which complied with the IMF targets. To meet the
primary balance target new taxes would have to be imposed (export taxes and increase of
personal assets tax) and expenses would have to be reduced, mainly of capital and subsidies
(transfer of subsidies to the provinces and increase in utilities rates).

Monetary Policy

As from October 1, the BCRA introduced major changes in the monetary and foreign exchange
policy as a result of the high nominal instability recorded since May, which led to a significant rise
of the nominal exchange rate and of prices in general, which resulted in the abandonment of the
“Inflation Targets” program which has been implemented since 2016. The BCRA decided to
establish a strong, immediately noticeable and verifiable commitment to not increase the
monetary base (control system of monetary aggregates) until June 2019, except for December
2018 and June 2019, which are the months when there is an increase in the demand of money.
The instrument used to implement this policy is the daily auction of Letras de Liquidez (LELIQ)
[Liquidity Bills] with banks, through which the BCRA establishes a bidding objective in line with
the monetary base; the interest rate is the result of such auction (which became the Monetary
Policy Rate, TPM).

At the same time and throughout the year, the BCRA fulfilled the commitment to redeem the
outstanding Letras del Banco Central (LEBACs) [Central Bank Bills]. Bank holdings were
replaced by LELIQs. On the other hand, balances held by institutional investors and individuals
went down from the maximum recorded in the first quarter of 2018 to 0 by the end of the year.
To achieve such target, the BCRA mainly increased the minimum liquidity requirements for
Banks so as to moderate the monetary expansion derived from the gradual reduction of the
renewed amounts to be invested in other assets than those issued by the BCRA.

On October 8 the LELIQs annual interest rate reached a maximum of 73.52% and fell to 59.25%
at year-end (a 14.3 percentage points decrease). The interest rate recorded its lowest level in
November due to a reduced nominal volatility, the inflation expectations and the decline of the

6 DEG: IMF currency.

high inflation levels recorded in September and October. However, the decrease in interest rates
slowed down as from December due to the recovery of the amount of money in circulation,
which was higher than usual for that period.

The BCRA over fulfilled the monetary base target all the months since the launching of the new
scheme: $19,000 million in October, $15,000 million in November and $14,000 million in
December. The contractionary bias of the monetary policy, strengthened by the new scheme,
enabled regaining control of the economy; the monthly inflation decreased from 6.5% in
September and 5.4% in October to 3.2% in November and 2.6% in December. However,
inflation is still high in spite of the fact that the monetary policy is lagging.

The new monetary policy scheme was supplemented by the determination of exchange rate
intervention and non-intervention zones applicable to the nominal exchange rate. The lower-
bound non-intervention zone (October 1, 2018) was initially established at $34/1 US$ and the
upper-bound non-intervention zone at $44/1 US$. Said limits were adjusted daily at a monthly
3% rate during the last quarter of 2018. Above the non-intervention zone, the BCRA may sell up
to US$150 million per day to generate an additional monetary contraction when the peso
weakens. Conversely, the BCRA may buy foreign currency in case the peso appreciates and is
below the non-intervention zone. Within that zone, the exchange rate may fluctuate freely. In
addition to the aforementioned changes, the BCRA announced its commitment to put an end to
money issuance resulting from temporary advance transfers to the Treasury, the remittance of
profits from purchase of foreign currency and the redemption of Lebacs.

Inflation

The inflation rate (measured by the Consumer Price Index) increased by 47.6% while the core
inflation rate (excluding regulated and seasonal goods prices) increased by 47.7% in 2018, as
compared to the 24.8% inflation rate and 21.1% core inflation rate of last year. The inflation rate
was well above the 15% inflation target determined by the monetary authority at the beginning of
the year and the market expectations. Price increase accelerated in the third and fourth quarters
due to successive devaluations, particularly following the increase of the nominal exchange rate at
the end of August, and inflation reached its peak since 1991. Notwithstanding the foregoing, in
October the Government implemented a new monetary plan based on the control of monetary
aggregates and a nominal exchange rate flotation band which is adjusted on a daily basis to
anchor the economy and lower inflation expectations.

The highest price increases were recorded in the Patagonia (50.6%), Cuyo (49.5%), Northern
region (47.8%) and Pampeana region (47.6%) while in the City of Buenos Aires and Greater
Buenos Aires it was below the average (47.1%)

As regards inflation components in 2018, the price expansion was led by goods, with increases of
50.5%, while services increased by 42.8%. This was due to the fact that great devaluations have a
greater impact on tradable goods than in non-tradable ones (services). This may be clearly seen in
the wholesale inflation rate (mostly affected by price increases due to devaluation), which was of
73.5%, well above retail inflation.

A.2. The Financial System in 2018

Financial System

During 2018 the financial system liquidity increased due to the increase in deposits, well above
loans, in a scenario of rising interest rates. The broad liquidity ratio (including not only cash but
also BCRA instruments and the 2020 Bond of the Argentine Treasury recorded as reserve
requirements) of the banks in aggregate reached 56% of deposits in December, recording an
increase of 16.3 percentage points in the year.

A significant aspect to be taken into account is that the financial system continued presenting
good solvency ratios during 2018, in spite of the strong rise in the nominal exchange rate. The
regulatory capital adequacy ratio of the sector totaled 15.6% of the risk weighted assets, according
to November data, which represents an 82.4% adequacy in excess of that under applicable
regulations.

As of November, profits of the financial system went up to 3.8% of assets and 34.1% of net
worth, which represents a 0.8% and 8.3% increase, respectively, as compared to 2017.

Deposits and Loans

In 2018 private sector total deposits in the financial system increased by 61.7%, closing the year
at $3,143,508 million. By currency, deposits in Pesos increased by 41% and totaled $2,047,370
million, while deposits in US dollars but measured in Pesos increased by 120.9% totaling
$1,096,138 million, as a result partly of the rise of the nominal exchange rate (measured in US
dollars, deposits increased to US$ 28,992 million, representing a 9.7% increase). By type of
deposit of the private sector in Pesos, the increase was led by CER/UVA adjustable Fixed Term
Deposits (+858.4%) and Non Adjustable Fixed Term deposits (+63.5%) while transactional
deposits recorded a lower activity (Savings Accounts and Ckecking Accounts grew by 23% and
24%, respectively). Fixed term deposits had a good performance mainly in the last three months,
as a result of the 50% growth of the year generated by the new monetary plan implemented by
the BCRA which, in addition to restricting the holding of LEBACs throughout the year by
institutional investors and individuals, which moved funds to the financial system, tried to attract
said deposits by increasing interest rates.

Besides, private sector loans recorded a year-over-year increase of 33% and totaled $2,133,212
million. Private sector loans in Pesos grew by 17%; the poor performance was due to the increase
of the interest rate and the strong economic recession. By product, credit card loans grew by
30.5%, personal loans by 19.2%, advances 17.4% and pledge loans by 10.7% while unsecured
documents targeted to the corporate segment fell by 12.8%. Mortgage loans recorded a 62.4%
increase, partly due to the good beginning of year and partly to the 47.6% inflation rate, used to
adjust UVA loans, which represent a significant part of the portfolio.

Interest Rates

At the end of the year the BADLAR interest rate of Private Banks was 26.3 percentage points
above the 2017 level (49.5% in 2018 vs. 23.3% in 2017) and the TM20 (for deposits above
$20,000,000) recorded a similar behavior, with an increase of 28 percentage points. The call
interest rate among private banks was 60.3% at the end of the year, as compared to 29.2% at the
end of 2017. All interest rates climbed as a result of the rise of the reference rate implemented by
the monetary authority to hold back devaluation and the rise of prices.

A.3. The Insurance Industry in 2018

The total insurance portfolio is made up of 37% of Automobile insurance, 17% of other
Property insurance, 17% of Personal insurance and 29% of Occupational risk insurance.

The share of insurance in the Argentine GDP was 2.9% in 2017, as compared to 8.1% in
developed markets and 8.6% in Brazil and 6.5% in Chile.

In 2017 there were 187 insurance companies, 16 of which offered Retirement insurance, 36
offered only life insurance (which includes Collective, Individual, Pension and Retirement,
Health, Personal accidents and Burial), 13 offered only Occupational risk insurance and 5 offered
public passenger transportation insurance. The remaining 117 offered Property Insurance or
“mixed” policies (Property and Personal insurance).

[References: Aseguradoras: insurance companies
Reaseguradoras locales: local reinsurance companies]

Outlook

The outlook for the insurance market is encouraging, with an expected growth of the insurance
market in aggregate, provided that the macroeconomic so permits.

We expect that homeowners’ insurance, special multiple peril and trade credit insurance, among
other, -currently with low market penetration- will continue growing as in recent years as a result
of a higher insurance awareness.

The Life and Retirement segments show growth prospects that will depend to a large extent on
the improvement of tax incentives to this type of insurance and the state policies regarding
financial inclusion, stability and development.

A.4. The Mutual Funds Industry in 2018

The industry’s growth measured in terms of monthly average balances as of December 2018 as
compared to December 2017 recorded an 8% increase, and if only Mutual Funds in pesos are
taken into account, it represents 6%. During the year mutual funds in US dollars recorded a 20%
increase – measured in Pesos - due to the devaluation of the local currency, and a 44% decrease
measured in US dollars.

The increase was well below inflation data, interest rate levels and Peso depreciation during the
year. Until April the industry showed a sustained growth; however, as from May, due to the
devaluation and the rise of interest rates, a decrease was recorded in managed balances due to the
volatility in their valuation that lasted 5 months, until September. During the last quarter of the
year, with the stabilization of these variables, the fall stopped and showed an increase driven by
institutional and corporate customers through lower risk products such as cash funds and
Argentina short term fixed income funds.

During the year investments were made in money market funds. With a 172% year-on-year
growth, these funds represented 10% of the industry in December 2017, to reach 25% in
December 2018. Said growth was due to the almost null volatility in returns (which were 34% on
average during the year – a year featured by high volatility-), and the immediate liquidity at
redemption.

The Argentina Short Term (t+1) Fixed Income funds in Pesos were the most affected by the
financial crisis. They recorded a 43% fall during the year, and represented 22% of the industry’s
aggregate managed funds in December 2018, as compared to 42% in December 2017. Its valued
feature of having returns similar to those of fixed term deposits, with low volatility and 24-hour
liquidity, suffered due to the sudden increase of interest rates in Pesos, and recorded negative
returns in certain periods. At the same time, the Peso devaluation speeded the redemption by
individuals, who chose to “dollarize” their investments. During the last quarter there was a slight
recovery driven by stability and returns.

The Argentina Fixed and Mixed Income funds in US dollars showed a similar behavior. Its
managed funds increased by 15% during the year, measured in Pesos, as a result of the
devaluation, but in US dollars they recorded a 47% fall. Thus, its share in the industry’s total was
17% in 2018, as compared to 16% in 2017. These products had experienced a strong growth in
2017, with good returns and low volatility. However, as from May investors began to flee due to
the negative returns caused by the fall of prices of local government and private bonds. Although
there was a certain degree of stabilization during the last quarter, managed funds still don’t show
a recovery.

The Argentina Mid and Long Term Fixed and Mixed Income funds in Pesos recorded a 16%
growth, and increased their share to 19% in December 2018, as compared to 18% in December
2017. Although these products were also affected by the high volatility of their returns, their
portfolios are made up of foreign currency assets and may also use hedging financial instruments;
and since their major investors are Institutional customers they did not fall as significantly as t+1
products and Argentina funds in US Dollars.

The Argentina and foreign Variable Income funds maintained their 4% share of the industry,
with a 3% year-on-year growth. It continues being a segment that does not raise the interest of
local investors.

The 8% growth of the local industry may be broken down as follows: corporate investors fell by
11%, institutional investors rose by 41% and individuals fell by 8%. As of the end of 2018, 42%
of Mutual Funds investors were corporate investors, 43% were institutional investors and 15%
were individuals.

2018 was featured by a decrease in the investments of corporate customers and individuals
mainly in Argentina Short Term (t+1) Fixed Income funds in Pesos and Argentina Fixed and
Mixed Income funds in US Dollars; together with a growth of Institutional investments in Money
Market funds. Besides, taking into account these circumstances, there was a lower share of fund
managers related to the main private Banks, which fell from 52% in December 2017 to 48% in
December 2018, and an increase in the share of independent managers of bank groups, which
increased their share by 37% in December 2018 as compared to 29% in December 2017.

A.5. 2019 Outlook

As regards the international economic scenario, one of the risks is deceleration of world growth.
The outlook is not favorable as the world economy is expected to grow in 2019 by 3.5% (revised
downwards in January as compared to IMF estimates of October) which would imply a
deceleration of the growth estimated for this year. What could mitigate the deceleration of the
world growth rate and, mainly of the USA, is the decline in the market expectations with respect
to the rise in interest rates by the Federal Reserve Bank in 2019. However, for Argentina, the
picture looks different basically because no deceleration is expected of world trade (which is
estimated to grow 4% at the 2018 pace). As for Brazil, Argentina’s main trade partner, an
acceleration is expected in growth of approximately 2.5% (as compared to 1.3% growth in 2018),
which will be beneficial, in particular, for those industry-related activities. Finally, the
expectations regarding international interest rates, unlike what happened in 2018, could favor
emerging bonds in general and those of Argentina in particular.

Economic consulting firms gathered in the BCRA’s Market Expectations Survey expect for our
country a negative economic growth rate of 1.2% as a result of the 2018 activity collapse while a
null growth is expected for the first quarter (quarter-on-quarter level, deseasonalized). As from
the second quarter a positive rate of 1.5% is expected, resuming the growth dynamics.

Likewise, the inflation rate is expected to fall from 47.6% (at the end of the year) to 29.0%
(December-December year-on-year variation) which would lead to disinflation. The monthly
average of the Nominal Exchange Rate is expected to be $48.0, i.e. a year-on-year depreciation of
26.8%, representing a deceleration as compared to the 2018 devaluation.

In short, we are moderately optimistic regarding the outlook for the year. Our estimates are that
challenges will continue at the macroeconomic level during the first half, but later there will be a
gradual improvement. The next presidential elections may pose a certain degree of uncertainty.

B. EVOLUTION OF GRUPO SUPERVIELLE

B.1. Acquisitions

On May 2, 2018, Grupo Supervielle purchased Micro Lending S.A. (MILA). MILA specializes in
the car financing. With its 36 branch network and agreements with over 5,000 car dealers across
the country, MILA allows Grupo Supervielle to supplement the products offer and play a
relevant role in the attractive car financing market for the acquisition of new and pre owned –
which market has a financing level of only 8% of the sales total in Argentina - which creates
cross-selling opportunities in all Grupo Supervielle companies.

Subsequently, on May 24, 2018, Grupo Supervielle purchased 100% of the capital stock of
InvertirOnline (“IOL”), through the acquisition of 100% of the capital stock both of
InvertirOnline S.A. and of InvertirOnline.com Argentina S.A.

IOL is a broker with an integrated proprietary platform specialized in online trading of stocks,
bonds and derivatives, which is a leader among the top five in the online broker segment in
Argentina, and a referent within the Fintech sector in the country. InvertirOnline provides at the
same time online training services and advice to its customers on finance and investments. It thus
promotes the adoption of responsible investment decisions in line with customers’ knowledge
and risk appetite, attracting more users to alternative savings instruments whose markets have a
great potential in the country. The capital market in Argentina, both in terms of transacted
volumes and of capitalization sizes, is within the smallest of the region. This purchase is within
Grupo Supervielle’s initiatives of selective acquisitions to supplement its strategy, in this case of
digital transformation. This acquisition clearly represents a qualitative leap in Grupo Supervielle’s
customer experience and at the same time offers new significant opportunities to IOL customers,
who become part of the platform of Grupo Supervielle and thus gain access to its traditional
products.

B.2. Corporate Image, Positioning and Communications

From Supervielle’s Marketing area, the main advertising campaigns launched in 2018 were:
Mortgage Loans; the positioning of Tienda Supervielle in the world of e-commerce; and in the
last quarter of the year the “Lo grande de ser una Pyme” campaign, based on Supervielle’s
strategic positioning in this segment. The Health Subsegment was launched as part of this last
campaign.

Most of the aforementioned communication campaigns were developed in mass media, with
brand presence through non traditional ads in the most viewed TV shows, reaching a higher
audience percentage beyond the traditional ads. These campaigns were also developed on cable
TV, in shows such as: “Naturaleza Salvaje” (Discovery) and -Argentine Superliga - Soccer
tournament - (TNT Sports). Supervielle was also present in large formats in the streets, subways
and buses and in the major FM and AM radio stations at country level.

As regards the customer service proposal, during 2018, Supervielle was present in the Atlantic
coast, sponsoring beach clubs in Mar del Plata, launching the Summer action: Barrileteada de
Reyes de Supervielle [Kite Flying] on January 6, where over 500 families flew kites. During the
winter season, Supervielle was present in Bariloche, with exclusive benefits. Within the
framework of the celebration of Children’s Day, the winter season at Cerro Catedral concluded
with a Fair for kids with games and Supervielle gifts. At the same time, in Mendoza, the Bank was
the Main Sponsor at the Green Market Festival and, in Buenos Aires, it was present in the Plaza
de las Banderas in Tecnópolis during the Unicef’s event “Un Sol para los chicos.” By late 2018,
the Bank was for the first time the Main Sponsor of a concert in a soccer stadium, with more
than 30,000 people, where a strong presence and exposure were achieved through the exclusive
presale, media plan and brand presence at the stadium.

2018 marked the 10th anniversary of the Bank’s celebrating La Vendimia [the grape harvest
festival] in Mendoza, with the exclusive event Vía Blanca for more than 250 customers. This
event has been in the province’s cultural agenda during the last years.

In connection with the digital area, there was an increase in microsegmentation and in the
number of deliveries in the email marketing strategy. Automatic deliveries were also generated
according to behavior in the first life cycles of customers by segment (customer journey).
Supervielle was present in major digital media. In massive campaigns, funnel retargeting was used
in programmatics to improve conversion and maximize business objectives (mass media and
google). In the social area, participation in campaigns AlwaysOn. A more aggressive strategy in
searchers (Google) with performance strategy (traffic, lead generation, etc.).

B.3. Corporate Social Responsibility (“CSR”) and Creation of Sustainable Value

Corporate Social Responsibility Strategy

Putting Values into Action

Grupo Supervielle has become an important referent in the Argentine financial system with high
visibility potential in its community activities. Its social commitment has been growing in a
sustained fashion and the strong regional presence of its main subsidiary, Banco Supervielle,
allows it to take action in certain sectors where social investment is insignificant.

We have four strategic objectives for all actions taken:

 Become an agent of change and creator of sustainable social value.
 Develop an innovative and transforming strategy with measurable and high-impact

actions.

 Synergize CSR initiatives with local communities in which the bank has commercial

activity.

 Build a cooperative and co-responsible organizational culture, through initiatives in

partnership with different NGOs and Corporate Volunteering.

Grupo Supervielle’s CSR Strategic Plan was developed basically through the Bank with 20
programs (in addition to Voluntariado Capitanes) grouped in four lines of action:

Senior Citizens: We promote an active and healthy aging, social participation and prevention of
dependency to go through the process of aging in a joyful and active manner.

Childhood: We help fight against child poverty and malnutrition and promote social
transformation through art.

Education: We promote opportunities to build a better future through education.

Institutional Strengthening: We contribute to the development of a long-term public agenda.

Context:

According to INDEC’s 2010 census, 10.2% of the Argentine people are 65 years old or older.

20% to 30% of senior citizens suffer from lack of family appreciation and affection and this gets
worse in the lowest social strata. 50% of senior citizens consider they are not sufficiently
appreciated in all their capacities.7

Programs:

Abuelos en Red

Proprietary Program

Abuelos en Red is a digital and financial inclusion program designed by Banco Supervielle and
aimed at active senior citizens who are fully integrated in their community, where they can find
opportunities for generational exchange both at real and virtual level.

The program was launched in 2007 with a view to training senior citizens in the use and benefits
of new technologies.

The program also seeks to promote financial inclusion in senior citizens through modules which
bring customers closer to new automatic channels and to the use of banking products.

Abuelos en Red is delivered through a Training Center Network made up of public and private
universities and training institutes which are attended by senior citizens, free of charge. This year
12,133 training sessions were held at 33 training centers of 21 universities within the Bank's area
of influence. Additionally, senior citizen customers have a fanpage @AERSupervielle in
Facebook where they can contact other senior citizens, exchange their experiences, participate in
activities and games on line.

7 Social Debt Barometer, regarding senior citizens. http://www.uca.edu.ar/uca/common/grupo81/files/2016-Prensa-
Barometro-Personas-Mayores.pdf

Concurso Grandes Autores, Relatos Cortos

Proprietary Program

For the fourth consecutive year, the Bank organized a literary contest aimed at its senior citizen
customers. The contest seeks to connect with senior citizens and add value to the bank-customer
relationship, placing senior citizens in roles where they can have an active participation in the
community. The stories are their expression, a reflection of their lives, of their experience
throughout the years and of their own way of looking at our history and our time. In addition,
the contest generates hope, stimulating imagination and creative activity.

In 2018, 772 short stories were presented by contestants from Buenos Aires, City of Buenos
Aires, Chaco, Entre Ríos, Misiones, Río Negro, San Luis, San Juan, Mendoza, Santa Fe, Tucumán
and Córdoba. The average age of participants was 71. Customers aged 55 to 98 participated in the
contest.

This initiative also includes the participation of volunteer employees who preselect the stories.
This year, 60 Grupo Supervielle volunteers worked on the preselection.

The first prize received $35,000 and the right to the radio adaptation of the story for Radio
Cultura, the second received $26,000 and the third one $18,000. The three winning works and the
finalists were printed in La Cita newspaper and the website www.supervielle.com.ar.

La Cita Newspaper
In partnership with Proyecto Surcos

This newspaper, which is free of charge, provides information to raise awareness about health
care, healthy aging, and prevention of dependency. The newspaper has a monthly print-run of
105,000 copies distributed in 123 Service Centers and Branches. Along with Proyecto Surcos, the
Bank contributes to the construction of social support networks that allow senior citizens to
identify problems and concerns common in their generational group and exchange information
and solutions. In 2017, the program was expanded to the Social Media through the production of
contents in different formats (graphic and audiovisual) to promote active and healthy aging
through advice, trivia, games, quizzes and drills, among others.

Childhood: We support organizations fighting against child poverty and malnutrition and foster
social transformation through art.

Context:

 48% of Argentine children are poor and 8.4% are extremely poor.
 Almost half of the deaths of children under 5 years of age is due to malnutrition.
 2 out of 10 children live in unsafe homes in terms of food. These conditions jeopardize

their rights and evolution.8

Programs:

Donar alimentos es donar futuro

The Bank works in partnership with NGOs to promote the prevention of, and recovery from,
child malnutrition. The Bank's commitment to children includes early childhood care and
nutrition.

In the second year of the matching funds campaign with Banco de Alimentos in Buenos Aires,
Córdoba, Tucumán, Mendoza and Mar del Plata $65,410 were raised per month, ensuring the
supplementary feeding of 4,354 persons per month. 4.01% of individual donors of Banco de
Alimentos are Supervielle customers.

8 Source: UNICEF / UCA’s Social Debt Observatory.

Combatir la Desnutrición Infantil
In partnership with Fundación Pilares and A.C. Pequeños Pasos

Fundación Pilares - Barracas CONIN Center: Since 2012, the Bank supports the CONIN Center
of slum Villa 21-24. The contribution this year was used to finance part of the Supplementary
Feeding Assistance attended by 39 children, 43 mothers and 4 pregnant women.

Each shift includes pediatric, nutritional, social work, child development consultations, health
and cooking workshops and the delivery of food bags.

In addition, during the year, Supervielle participadted in the Fundraising Dinner organized by the
Funación and as part of its community service activities it arranged the delivery of 25 Christmas
boxes for families participating in the program.

Asociación Civil Pequeños Pasos: the Bank supports Espacio de Primera Infancia, in San Martín.
Its investment in the Program Nutrición de Primera Infancia represented 70% of the yearly cost
of the infant room attended by 49 children 45 days to one year old.

Socializar a Los Niños a Través del Arte
In partnership with Casa Rafael

The Bank assists Fundación Casa Rafael in stimulating resilience in socially vulnerable children
through art and psychological and social support. Since 2006, Casa Rafael has provided services
to some 230 children between 4 and 18 years old in the Chinese neighborhood of La Boca. Casa
Rafael takes care of children exposed to miscellaneous risks arising from the place they live in.
Workshops are spaces where the kids can socialize and grow, taking advantage of their creative
resources, to become active and positive community builders.

The direct financial contribution was used to cover 89.28% of the cost of the two teachers of the
Audiovisual Arts Workshop (attended by20 chilren over 10 years olf and 30 children aged 7 to
10), 73.79% of the cost of the Espacio JugArte teachers (attended by 35 children between 4 and 7
years old) and 30.64% of the cost of the two teachers of the Hip-Hop Workshop (attended by 35
children aged 7 to 17).

All of the funds received from Banco Supervielle in 2018 were used for the teaching area and
represent 11.87% of the budget for professionals in direct contact with beneficiaries, excluding all
administrative expenses.

A contribution was also made for a wall painting (by 38 children aged 7 to 17). The activity
included a community service day with the participation of 5 Bank volunteers who shared an
afternoon with workshop children and helped them make part of the wall painting on the streets.

In 2018 two workshops were held thanks to the Bank’s contribution made in 2017 for projects
personally introduced by professionals of Casa Rafael under the Cultural Patronage System.

Education: we create opportunities to build a better future for youths through education

Context:

 1 out of 2 youths DROPS OUT of secondary school.
 9 out of 10 youths DO NOT complete university studies.
 The year-on-year drop-out rate in secondary school is 15.8% - the highest in Latin

America.9

9 Source: IDESA

Futuros Egresados
In partnership with Cimientos

Cimiento’s work is focused on supporting students who attend schools in vulnerable socio-
economic contexts by providing economic and academic support, helping them develop skills
and improve school performance, better their chances in life and project their future with greater
opportunities. In 2018, a total 80 scholarships were granted to students: 25 scholarships were
maintained at school No. 51 Maestro Faustino Segundo Mendoza in San Luis, 15 scholarships for
4th year at school No. 11 "Benito Juárez" in Villa Mercedes, 21 scholarships for 5th year of
“Escuela Ernesto Sábato” in Mendoza and 19 more scholarships at Escuela No. 4148 Manuel
Belgrano for 3rd year students. In December 21 scholarship recipients of Mendoza graduated. 10
of the Mendoza graduates will take part in the paid apprenticeship Construyendo mi Futuro in
2019.

The total 80 scholarships were financed this year by the Bank's customers who became active
donors of Cimientos in 2015, 2016 and 2018.

As part of the Corporate Volunteering Program, 44 employees of the Bank are sponsors of one
or two scholarship beneficiaries, allowing them to meet and connect with professionals who, in
turn, may inspire them to dream big. Sponsors receive semi-annual reports on the beneficiaries'
school record and their life situation and are encouraged to contact the children through a
platform managed by the NGO.

Construyendo Mi Futuro
In partnership with Enseñá por Argentina

Support continued to Fundación Enseñá por Argentina, which fosters inclusion and quality of
education through leaders committed to promoting quality education opportunities for everyone.
The work done by Enseñá por Argentina impacts on two large groups of beneficiaries. On the
one hand, students in socially vulnerable enviroments who face important daily challenges to
remain in the education system and wish to make it to university. On the other hand, young
professionals who, motivated by the desire to make a change in society, are trained to educate in
schools in vulnerable locations convinced that inequality and social injustice can be reduced
through education.

In 2018, the Bank financially supported the training of 10 professionals that impact on the school
performance of some 1,200 students.

On the other hand, the Human Resources area of the Bank organized the ninth edition of
Construyendo mi Futuro with the participation of 83 youths, 32 of which were children of
employees and 43 were graduates from schools where the NGO Enseñá por Argentina works
and 8 children of Fundación Germinare. Participants worked one to two months at Service
Centers, Branches and Central Bank Areas.

The program seeks to bring youths closer to the first job experience. In addition, they are
provided the tools to develop both at personal and professional level and helps them become
aware of the importance of a professional career looking to the future.

Becas Universitarias Anpuy
In partnership with Fundación Anpuy

In 2018, the Bank continued financing 24 university scholarships for youths together with
Fundación Anpuy which is part of the Cimientos network, in the province of Salta. These youths
were raised in the small town of La Unión, Rivadavia district, and currently study in Orán, City of
Salta and Tucumán. The youths receive economic and academic support throughout their courses
of studies so that they may achieve academic success. 4 youths graduated this year.

Las Ventajas de Permanecer en la Escuela
In partnership with Junior Achievement

In 2018 6 programs “Fundamentos Empresariales” were held at 4 schools in the city of
Mendoza. The program was delivered by 12 bank volunteers and attended by 174 5th grade
students.

Aprendiendo a Ahorrar
In partnership with the Central Bank of Argentina

For the second year in a row, the Bank and the BCRA delivered financial education workshops at
schools in the province of Mendoza. The workshops were organized in coordination with the
Schools Department of the province.

The workshops, in charge of CSR personnel, were intended to teach youngsters the benefits of
saving over consuming to achieve objectives which cannot be attained without specific financial
planning or decisions. The workshops also offered basic financial knowledge for the use of
money and information on the different savings options in the banking system.

4 workshops were delivered which were attended by 306 5th year students.

Formación de líderes educativos
In partnership with Consejo Empresario Mendocino

The Program is aimed at improving the management of transformative programs in public and
private schools in the Province of Mendoza, with the heads of said schools as key players of this
process.

Managing an educational organization requires distinctive skills and qualifications, therefore it is
critical to train education professionals with a comprehensive managerial vision.

The aim of this Program is to promote the switch from a traditional bureaucratic and process
centered management model to an achievement oriented model.

The Program’s methodology, developed by Fundación Córdoba Mejora, was first implemented in
2012 in the Province of Córdoba, and later transferred to Consejo Empresario Mendocino
(CEM) through a cooperation agreement entered into in 2014.

The duration of the program is two years. In 2018, the Bank financed 19 scholarships and 80
scholarship recipients have graduated since 2015.

Formación de becas universitarias Bisblick
In partnership with Bisblick

Bisblick´s aim is to support low income youngsters during their education and labor inclusion
process through the granting of scholarships for college or university studies, so that they may
develop their interests and talents, improve their labor prospects and therefore their quality of
life.

Institutional Strengthening: we contribute to the development of a long term public agenda.

Context:

In our country, the average confidence in institutions is lower than 50%. Confidence in
government officers is 41%, only exceeding confidence in mass media, which is at a floor of
39%.10

10 Source: Trust Barometer Edelman 2018

Integridad y Transparencia
In partnership with RAP

The Bank continued supporting Red de Acción Política (pluralistic and non partisan association)
in the training and strengthening of political leaders. Created in 2002, RAP is a space of
coordination for:

 Men and women actively engaged in politics who are invited to join RAP (Políticos RAP),

and

 Citizens and institutions engaged in public life and with an interest in making a

contribution to the country from a non partisan place.

The Bank, which is part of a network formed by other institutions and individuals, gives financial
support to RAP (Associate Member).

Dinero y Política
In partnership with CIPPEC and Poder Ciudadano

Work was done for the fourth year in the project intended to improve the current campaign
financing system and contribute to the implementation of new mechanisms with a view to
enhancing transparency in campaign financing and strengthening the controls exerted by electoral
authorities.

Observatorio de la Justicia
In partnership with CIPPEC

The project seeks to promote and strengthen the capacities of the Council for the Judiciary. It
proposes monitoring the degree of effectiveness of the courts in corruption matters and
considering sensitive areas as part of the public agenda in order to improve the administration of
justice.

EDULAB
In partnership with CIPPEC

The mission of EDULAB consortium is to be an innovation catalyst for educational justice in
Argentina. Its objective is to think, design and make possible, together with other institutions,
actionable maps of the educational system of the future.

Barómetro de la deuda social con las personas mayores
In partnership with UCA and Fundación Navarro Viola (FNV)

The Bank supports the research work of UCA’s Social Debt Observatory for Argentina on the
living conditions of senior citizens, based on the UN’s Universal Declaration of Human Rights
and the promotion of Comprehensive Human Development of senior citizens. Together with
FNV we promote the exchange of scientific information among sociologists, psychologists,
educators and social workers. Three thematic bulletins are published with primary information
collected through the Argentina Social Debt Survey [Encuesta de la Deuda Social Argentina].

MAMBA
In partnership with MAMBA

Banco Supervielle partners with Asociación Amigos del Moderno to support the institution as a
strategic partner of the Museum of Modern Art (MAMBA). This initiative allows Banco
Supervielle to consolidate its presence in the art world and offer its clients and employees new
benefits related to culture in the City of Buenos Aires.

The Bank’s contribution ensured sustainability and allowed long-term planning to the museum’s
management. This resulted in an increased number of visitors to the museum, which grew year
upon year, from 87,500 in 2014 to 200,000 in 2018.

In addition, this year, 12,000 school teachers participated in specific training sessions on art,
20,000 persons participated in the museum’s educational activities and 1,000 persons participated
in institutional visits.

During 2018, 8 national and international exhibits were staged in which 130 national and
international artists participated. 7 artist catalogues were published and 95 events were held at the
museum.

Community work

Voluntariado Capitán
Proprietary Program

In 2018 the Bank launched the third edition of the program Voluntariado Capitanes. This
program focuses on enhancing the commitment of Grupo Supervielle’s employees to the
community and creating real impact in the communities where Grupo Supervielle is present. The
volunteers, led by a captain, organize cooperation projects with NGOs. Projects must focus on
local development and community strengthening and must relate to one of the four CSR pillars:
Education, Institutional Strengthening, Childhood or Senior Citizens.

In 2018, 20 programs were carried out, 9 of which were in the City of Buenos Aires and Greater
Buenos Aires, 6 in Mendoza, 2 in Córdoba, 1 in Mar del Plata, 1 in Tucumán and 1 in San Luis.
13 of these programs were related to childhood, 5 to education and 2 to senior citizens. Among
the main activities, volunteers refurbished spaces, equipped rooms and carried out activities with
children, youngsters and adults. All the 20 projects were carried out by employees of Banco
Supervielle, CCF, Cordial Servicios and Supervielle Seguros.

B.4. Evolution of Operations

Grupo Supervielle’s strategy lies in consolidating the growth path achieved during its long history,
strengthened by the capital expansion in 2016 and 2017, and offering, through all its companies,
multi-brand (financial and non-financial) products especially designed to meet the needs of its
customers. Its companies focus on multi-segment customers and have a great cross selling
potential. Due to its scale and diversity, Grupo Supervielle seeks to achieve high efficiency levels
through the development of shared corporate services.

BANCO SUPERVIELLE

Banco Supervielle is the 7th largest private bank in Argentina in terms of loans and ranks 10th
including public banks. It has a long history in the Argentine financial system, operating in the
country for the past 130 years, with a leading competitive position in certain attractive market
segments which are strategic for Grupo Supervielle. The Bank offers miscellaneous financial
products and services, especially designed to meet the different needs of customers through
multiple platforms and brands.

Banco Supervielle is also the controlling shareholder of Cordial Compañía Financiera, a
consumer finance company operating at Walmart Argentina stores as financial service provider
for its customers. Banco Supervielle is the main subsidiary of Grupo Supervielle.

The Bank has direct presence in major regions and cities of Argentina, particularly in the
metropolitan area of the Greater Buenos Aires, which is the most densely populated area in the
country and the most important one in commercial terms, and in the Cuyo region, which includes
the provinces of Mendoza, San Juan and San Luis.

As of December 31, 2018, its infrastructure supported its multi-channel distribution strategy, with
a strategic presence nation-wide through 309 access points, including 182 bank branches (78 of
which are bank branches operating as payment centers for senior citizens), 22 sales and collection
centers and 79 points of sale of Cordial Compañía Financiera located at Walmart supermarkets;
26 branches of Mila offering car loans for the acquisition of automobiles (in addition to its 209
related car dealers), 526 ATMs and 217 self-service terminals. On the other hand, as of
December 31, 2018, it also provided financial services through the 35 branches of Tarjeta
Automática and through other points of sale in other retailers.

Corporate Banking Segment

The Corporate Area of Banco Supervielle’s Corporate Banking segment is made up of three
commercial areas, three product areas and one Commercial Intelligence and Planning area.
Corporate, Mid-Sized and Large Companies and SMEs areas are located in the City of Buenos
Aires (CABA) and the Greater Buenos Aires (GBA). The rest of the country is served by the
Interior area, present in Mendoza, Santa Fe, Córdoba, Tucumán, San Juan, San Luis and
Neuquén. On the other hand, International Trade, Leasing and Transactional Banking – all
product areas – give advice on, and generate, new businesses with Corporate and Retail Banking
customers through their highly trained officers. The structure also includes the Commercial
Intelligence and Planning area which provides support to Banking teams in the analysis of data,
information generation, management follow-up and commercial planning.

The Corporate Banking segment operates with all company segments, mainly focusing on small
and mid-sized companies. By the end of 2018, its portfolio was of about 4,934 customers,
managed by account officers and marketing assistants.

The customer service model is based on regionalization. Services to SMEs and large companies
in the City of Buenos Aires and its vicinities are provided through regional branches located in
the most densely populated industrial and commercial areas.

2018 – year of consolidation of the Corporate Banking Strategic Plan.

Its main pillars were:

 Prioritizing investments and efforts in segments, regions, chains and specific products

intended to develop a unique competitive position.

 Growing in the SME segment with focus on key sub-segments leveraging strengths in

products.

 Developing proposals focused on comprehensive relationships, aiming at becoming our
customers' first choice bank and at attaining reciprocity and high cross-selling capacities.

 Enhancing the business profitability improving productivity and efficiency of commercial

and operational areas.

Products and services for companies

Corporate Banking businesses are generated through the main lending products and focusing on
corporate cash management through borrowing products and commissionable services.

The main credit assistance products include overdrafts, check discount, invoices and work
certificates, discounts (unsecured or secured) financial loans, loans secured by Mutual Guarantee
Societies (MGS), Foreign Trade financing lines and Leasing in its different types.

With the intent to provide to our customers agile and simple cash management solutions, during
the past years the Corporate Banking segment focused on increasing the functionality of its
collection and payment products and on increasing the set of available transactions through
Online Banking Empresas. This improved the performance of Cash Management products and
of Foreign Trade products, supported by traditional checking accounts and special checking
accounts. Additionally, the Bank offers a wide array of Mutual Funds for management of
financial surpluses adjusted to companies’ liquidity and profitability needs.

In synergy with the Retail Banking, the services also include payroll payments through Planes
Sueldo and products for the High Net Worth segment (customer Company executives).

SMEs Segment

AMBA SMEs

 New Customers: +32% of new customers as compared to 2017.
 Average Asset Volume: +16% as compared to 2017.

Lead Generation Model

 The sales force focused exclusively on attracting the taxpayers segment known as

Responsables Inscriptos.

 Generation of leads: identifying prospecting sources and working with each relevant area

to turn such data into future customers.

Channel Prioritization and Selection
A referral protocol was developed based on invoicing and channel type (Branch, E&P Sales
Force and SMEs officer).

Customer Service Model

 Greater development in the customer service model.

The largest 20 branches of the Bank offer tailor made services, and have 2 executive profiles: one
with a reduced customer portfolio and focused on high turnover companies, and another who is
focused on low turnover Entrepreneurs & SMEs. This facilitates the provision of specialty
services to large companies and greater agility for small companies; thus, 85% of branches and
92% of customers received a personalized service, and resulted both in customer base growth
and service level maintenance.

Banco Supervielle continues providing a close and effective service to SMEs, and to that effect its
business executives assist a lower number of customers than the average in other banks, thus
ensuring that customers receive an adequate service to promote their business.

 Launching of the Node Service Model.

The Node Service Model is intended to balance customer portfolios managed by SMEs officers;
to that end a dedicated officer is assigned every two or three branches so as to increase the
synergy between the Corporate and the Retail Banking segments. In this line, the regions and
nodes of both Banking segments were also mirrored. In addition, the “SMEs Week” was
implemented, whereby the branch manager and the SMEs officer work together to generate new
Plan Sueldo accounts among its Corporate Banking customers.

 NPS.

In 2018, the NPS measurement was implemented in the SMEs segment of Corporate Banking,
which averaged a ratio of 33%. In the Entrepreneur and SMEs segment, the NPS reached 32%.

Subsegments
The proposals of the Franchises and Transportation subsegments launched in 2017 consolidated
in 2018. The customer base grew by 71% and 23%, respectively, as compared to December 2017.

In line with the Bank’s intent to become the Bank for SMEs, a value proposition was launched in
November 2018 aimed at the Health sector, in line with the positioning started in 2017. During
2019, Supervielle will continue launching special proposals for different sectors and/or industries
which encompass more than 50% of the country's SMEs.

Franchises
Following the path started in 2017, the focus was placed on lead generation, which recorded a
140% increase as compared to 2017. On the other hand, the customer base went up 68%.

In order to expand the universe of qualified customers and not only assist prequalified brands
(40), in July the SGRs joined in to assist customers under a franchise agreement who do not have
a credit track record (start up).

As part of its exclusive value proposition, Banco Supervielle finances up to 40% of the initial
investment (cap of $800 thousand for new franchisees), offering preferential rates and a 6 month
grace period for repayment of principal.

Transportation
In spite of the economic situation and the increase in rates, pillar of the proposed lead
generation, the origination of new customers went hand in hand with the segment’s pace,
increasing the customer base by more than 23%.

Health
A value proposition intended to cater for the needs of Health and Diagnostic Centers, Outpatient
Doctors’ Offices, Laboratories and Pharmacies was presented in November and to that end,
focus groups were held with sector companies and customers. The proposal is featured by
promptness in loan granting and agreements with vendors. As regards credit, requests for

amounts less than $10 million were answered within 24 hours and requests for amounts above
$10 million were answered within 72 hours.

Foreign Trade

During 2018, the simplified exchange regulations prevailing in the previous two years for foreign
trade continued, which has led to a more agile settlement process.

The commercial action developed by foreign trade teams resulted in the Bank’s market share
growing by 25% in terms of goods exports.

As regards the financing of foreign trade, the rising trend of the past year continued during the
first half. However, on reaching the third quarter, the imports segment started to contract as a
result of the first peso devaluation. Over the end of the year a strong recovery was recorded in
the exports business of the Bank’s customers.

By the end of October and with a view to promoting Argentine exports and the inflow of foreign
currency, the Ministry of Production and Labor invited Banco Supervielle to take part in the
Argentina Exporta Program oriented to prefinance sales abroad of Argentine SMEs. The
program grants financing for up to US$200 thousand, at a maximum nominal interest rate of 7%
and for a maximum term of 1 year. The facility is secured by Garantizar SGR, Acindar Pymes
SGR and Fogar. As from November, the Bank launched a lead generation campaign under this
program, which will continue throughout 2019.

As to settlements and foreign trade transactions, in 2018 the Bank continued with the
digitalization of its transactions and achieved an 80% paperwork reduction.

Following on this digital trend, the E-Comex channel continued to consolidate. Importer and/or
exporter customers make inquiries on their ongoing transactions and manage payments and/or
collections through Corporate Online Banking. The digital tool was updated during 2018 for the
purposes of agility and simplicity.

Banco Supervielle remains the only bank in the Argentine financial system to operate in the
International Factoring market, through FCI (formerly called Factor Chain International).

In December 2017, a customer service center was created called “Contacto Comex,” staffed with
a team of experts fully dedicated to respond foreign trade inquiries from our customers and over
5,000 customer cases were dealt with during 2018.

Leasing

The Leasing Management meets the leasing needs of all commercial banking areas of Banco
Supervielle. While leasing remains a very attractive instrument for companies to finance
investments related to business growth and operating efficiency, the rise in interest rates and the
deceleration of economy caused a significant fall in the volume of contracts executed.

During 2018, processes were improved to achieve benefits resulting from the merger of Middle
Office and Back Office teams, and enhancing the customer’s experience. Due to the digital
transformation the product will continue being highly accepted in the market.

Wines Sector

During 2018 the Wines Division of Banco Supervielle consolidated as a benchmark in the
industry, being the only Argentine Bank with a division dedicated to servicing wine cluster
companies, which has a deep knowledge of the sector’s complexities.

The quarterly report has become a source of reference for company executives of the value chain.
The main officers of sector companies as well as specialized journalists are invited to the
presentation of the annual report, which in 2018 was held at the Hyatt Hotel of Mendoza in early
May.

The Sitevinitech, the largest fair of wine industry suppliers in South America, took place from
May 16 through 18 at Arena Maipú in Mendoza. Wine-related goods, supplies and services are
exhibited there. The 2018 edition had over 200 participants and more than 15,000 visitors. The
Bank was a Platinum Sponsor of the fair and had an active participation with a stand and
sponsoring the talk by economist Gustavo Reyes. The Leasing Community for capital goods was

launched at the fair, which is formed on the one hand, by wine makers and business units and on
the other hand, by suppliers of capital goods for the wine industry. This helps community
members to obtain better terms in connection with their investment plans.

The Bank was one of the first entities (which is not a vineyard) to become a member of the
Cámara de Bodegueros de San Juan [Vineyard Chamber of San Juan]. With more than 80 years
old, the Chamber gathers the main bottling vineyards of the Province of San Juan. In the annual
Chamber meeting held in June in the City of San Juan, the Bank delivered a talk on the wine
industry scenario.

The Bank’s Wines Division organized the “Innovation Week,” a joint effort with Universidad
Nacional de Cuyo, the Andean Development Corporation and the Chilean Consulting Firm
Transforme. This program invited 25 wine industry related companies to a one week intense
training and work meeting to deal with matters related to Innovation in the Wine Industry. This
was the first step for the future establishment of a center for Innovation in the Province of
Mendoza. In 2018 the primary sector continued to be supported through Harvest and Carriage
loans and financing of grape purchases by wine makers. By late 2018, the Vineyard Tour was
launched to support wine tourism. Through this program, Banco Supervielle cards holders obtain
significant discounts in visits, wine tasting and restaurants of member vineyards.

Agricultural Plan

The Ministry of Agriculture of Argentina rated the 2017/18 Agricultural Campaign as the worst
ever in the past 50 years(*). In addition to this dramatic yield reduction, during 2018 there were
other local economic variables, such as a more than 100% depreciation of the US$/$exchange
rate, with the resulting increase of export taxes, also for agricultural products, as well as
international variables related to agricultural commodity prices, which were affected mainly due
to the “US-China trade war.”

As regards those products intended for domestic market, the most affected were those highly
dependent on corn. Their cost is stated in US dollars while domestic consumption is stated in
pesos. These activities include mainly cattle finishing, poultry and dairy farms mainly.

Considering the profile of the customers generated following the implementation of the
Agricultural Policy of Banco Supervielle, the decision-making matrix of which is based on climate
risk, giving priority to farm owners, and on risk diversification by type of production and area,
the default rate of this portfolio was very low.

In the Province of San Luis the Bank was present at major events (Rural Exhibitions, Technical
Talks, Auctions by well-known cattle farms and related provincial events), and maintained its
leadership in the Agricultural Segment in such Province. The Bank also had a greater presence in
other areas where it has branches, such as the NOA and Mesopotamia regions through the
Tucumán and Rosario branches, respectively.

Mutual Guarantee Societies (SGRs)

During 2018, the Bank continued operating with 70% of the SGRs authorized in the country (24
over 35 authorized SGRs and Guarantee Funds). The Bank remained a sector leader, being
recognized as the Bank for SGR Bank by the Cámara Argentina de Sociedades y Fondos de
Garantías [Argentine Chamber of Guarantee Societies and Funds] (Casfog), by other banks and
by the Control Authority (Ministry of Production/Sepyme).

Banco Supervielle was also a leader in innovation for being the first private Bank to operate with
the Digital Guarantee Certificate issued by Garantizar SGR - (No. 1 entity in the country - 50%
of the market share) and also for executing an agreement with this MGS to offer a Business
Credit Card with guaranteed purchase limit.

Due to the its expertise and the sector’s recognition, Banco Supervielle was elected by the
Ministry of Production to execute with the BICE the Agreement for receipt of guarantees issued
by the Fondo de Garantía Argentina, thus becoming the first private Bank in the country to
develop these operations basically oriented to loans for SMEs.

Together with some SGRs, financing facilities were developed for SMEs, members of the value
chain, entrepreneurs and franchises.

Oil & Gas Project

The Bank considers that the oil sector has a high growth potential. Therefore, in 2018, the Bank
decided to lay the bases for the development of this project. The Bank worked together with an
international consulting firm specialized in the sector and a multi-disciplinary team. The
implementation of this project began in 2018 and will extend throughout 2019. Oil and gas
activities record a sustained growth, though with cycles. The most attractive oil and gas areas, the
Neuquén and San Jorge gulf basins, are located in the Patagonia and concentrate 80% of the
country’s oil and gas production and investments.

An important milestone was the opening in April of a new branch in the city of Neuquén, in
addition to the existing customer service model. This allows for a close contact with the value
chain of large operators and an improved competitiveness through the incorporation of new
Planes Sueldo of individuals with high purchasing power residing in the area.

According to estimates, the development of the Vaca Muerta oilfield has a significant potential
for several value chains, to wit: Services for Extraction, Operation & Maintenance and
Transportation, to mention the main three.

An Oil & Gas Team Leader was hired for the Corporate and Large and MEGRAs Area, who
shall coordinate the marketing actions for this sector to fulfill the anticipated lead generation and
development plan.

Transactional Banking

The Bank continued with the investment process of previous years, improving the offer of
collection and payment products, with a view to increasing transactional banking activities with
customers.

Corporate Digital Banking

2018 was a turning point for Banco Supervielle’s Digital Banking due to the merging of the
Corporate Digital Banking and the Individual Digital Banking areas into a new Transformation
Area. The most important milestones for companies were the opening of two new operation
channels, the New Corporate Mobile Banking and a new Corporate Digital Banking platform
which will replace the current Corporate Home Banking.

In addition to the implementation of new technologies, a new form of work, Agile, was
implemented, and the Corporate Digital Banking was the first Project of the Bank developed
according to this methodology.

It was implemented in 2018 and was gradually applied to all customers, entering a new
construction and functionality migration stage.

The most relevant achievements include the new Business Online Banking, with a new design
and technology, a menu with everything only 2 clicks away, a modern consolidated position, new
paper-less self-management processes, a better help and search module, user surveys and health
monitoring modules and Analytics.

The new Business Online Banking incorporated new functionalities and improvements:

o New Corporate Credit Card queries,
o New DEBIN/CREDIN product.
o new Débito Directo product
o integration of new Club de Puntos.
o New transfer concepts.
o UX improvement in Foreign Trade transactions.
o Improvements in Custody and Factoring (unified application and better reports).
o New collections and escrow account queries.
o Management of Banelco Depósito cards.
o New Corporate Mobile channel, unified in a single app with: authorizations
Module, Balance and Movement queries, Face biometrics for App access, self-
management of key unblocking/new keyword, new DEBIN/CREDIN products,
Analytics module.

o More functionality in the App for checks: improvements in check image capture,
adjustment of information messages, health monitors and Analytics, IPhone X
optimization (new splash, images), Optimization of 4K, WQHD, FHD and large
screen devices, usability improvements.

o Improvements in the iFactus channel: possibility to receive invoices in other
standard formats, first Bank in Argentina authorized by GS1 International for
electronic data exchange, new health monitors and Analytics, debt reporting and
payment button for collection.

o More services in Interbanking: regulatory adjustments through Communication A

4835 and A 4928 (new types of transfer).

o Updating of Swift services: Statements of more than one account MT940,

Balances as at value date.

Commercial Intelligence and Planning

Focusing on data analysis and data transformation into information and knowledge aimed at
increasing business volumes and consequently the results of the Banking segment, an
interdisciplinary work was carried out during 2018 for an internal restructuring, through a new
non-vertical form of work to achieve more agile and collaborative work methodologies.

[Segmentos: Segments
Productos: Products
Proyectos: Projects
Campañas: Campaigns
Bases de Datos y Clientes: Data and Customer Bases]

2018 achievements worth mentioning include:

•

Implementation of Machine Learning Services to model and analyze data for the
standardization of behaviors based on information supplied as cases.

Initial segmentation of the customer portfolio of the Bank and of the Banking sector in
particular

Implementation of Comex and Leasing contact service circuits.

• CRM
•
• 360° Survey – Legal Persons
• Opportunities Module – Loading and follow up of Account Planning.
• Training of officers in the provinces, Cuyo and AMBA
• Account Planning Project – Customer portfolio development

• Gathering and availability of information for commercial teams
•

Implementation of the methodology to increase the commercial productivity of
executives

• Campaigns

•

Information was generated for over 30 campaigns throughout the year

Customer Satisfaction

A new edition was conducted in 2018 of the Annual Satisfaction Survey of the Corporate
Banking sector. As compared to the 2017 survey, the general result reflected the impact of the
negative business expectations on the valuation of members and suppliers, and represented the
Bank’s strategy, focused on customers that concentrate all their transactions with Banco
Supervielle. In this regard, the NPS (Net Promoter Score) of the customers using Supervielle as
their secondary bank went down while it increased for those who use it as their main bank.

The mostly used channel remains the Business Officer, which confirms that interpersonal
closeness is key in commercial relationships. There is a unique communication opportunity for
officers specialized in the different products to meet customers’ needs to a greater extent, based
on their availability and expertise.

Retail Banking Segment

Banco Supervielle’s Retail Banking offers a wide array of financial products and services designed
to meet the needs of individuals, small businesses and entrepreneurs: Personal Loans, Mortgage
Loans, Bank Guarantee for Tenants, Salary Advances, Secured Loans, Payroll Payment Plan
(Planes Sueldo), Credit Cards, Debit Cards, Savings Accounts, Time Deposits, Checking
Accounts, and financial services and investments such as Mutual Funds, Insurance and
Guarantees, and Senior Citizens Benefit Payments.

The focus is on automatic channels to provide greater functionality to face-to-face and digital
automatic platforms, not only to expedite transactions but also to generate new marketing
channels.

The service model seeks to achieve maximum efficiency while maintaining personal contact and
customized assistance required by customers of strategic segments; once the specific needs of
each customer are assessed, specific products and services are designed to meet their needs,
through a sub segmentation of customers to offer the adequate service level to each customer
profile. The personal service model is enhanced to suit high net worth customers, “Identité,” and
individuals engaged in business and small companies “Entrepreneurs & SMEs,” reaching an 85%
+ network coverage of Identité customers and 90% of Entrepreneurs and SMEs.

In 2018 the network's area of influence was expanded with the opening of three new branches.
These openings were intended to consolidate the Bank’s presence in areas with high density of
stores and achieve full coverage in commercial corridors where SMEs are established.

Additionally, continuing with the path set in the past year, substantial changes were promoted in
Service Centers, modernizing daily operations and meeting the needs of senior citizens. With the
development and expansion of automatic solutions for queries and cash withdrawals that include
biometric identification, the bank has paved the way for future generations of senior citizen
customers.

Products and Services

During 2018 the Bank promoted bankarization at all levels, promoting streamlined transactions
and enhancing the use of automatic channels.

In line with the development of strategic segments the specific needs of customers were
evaluated with a view to designing products and services that meet the requirements of each sub-
segment. These launchings are based on the knowledge of customers’ life cycle so as to actively
support their development and that of their community and foster employment generation.

In the senior citizens segment, the coverage and functionalities of the biometric network was
enhanced so as to make face-to-face service processes more efficient, thus achieving significant
improvements in transactional times, a positive perception of the Bank-Customer relationship
and a better experience for senior citizens.

In 2018 the programs Aeris, Aeris Empresas and Club Supervielle merged, giving rise to a new
loyalty program with a new brand and visual identity of the public site, extending the benefits to
the Bank’s general portfolio and making access options to tourism products and services more
flexible through greater synergies with the suppliers. The next steps include the integration with
Tienda Supervielle Productos and the development of a specific program aimed at the senior
citizens.

Investments

With focus on the efficiency of operations the Bank continued strengthening and developing
autonomous channels for a comprehensive management of investments operations. Following
the past year’s development of the Centro Integral de Inversión for a personalized service, in
2018 the Bank started preparations for the merger of management platforms, to offer more agile
products and better investment alternatives to its customers, which will lead to a greater
penetration in terms of management of funds of current customers and an increase of lead
generation of high net worth customers.

A high percentage of time deposits, mutual funds and purchase and sale of shares, bonds and
currency was made through automatic channels, supported by communicational actions and the
establishment of specific benefits. In addition, UVA-denominated time deposits were launched,
with an attractive proposal to use automatic channels.

Insurance

In 2018, the Integral Insurance policies was launched which completes the services offered
mainly to Entrepreneurs and SMEs, which service is fully processed by Supervielle Seguros.

The group’s perception was strengthened by the design of new products, in an interdisciplinary
effort by Supervielle Seguros and the Product areas and Retail Banking Segment, especially
designed to cater for the actual needs of each customer segment. The Bank seeks to add value to
the new lifestyles and new habits, incorporating a pet insurance, bicycle insurance and a policy
covering high-end products for VIP customers.

Work continued in the improvement of products, such as the online quotation and purchase of
car insurance policies, and life insurance and burial insurance for Senior Citizens, which are
highly valued by that segment. In addition, the Home insurance was repositioned as civil liability
coverage for occurrences of daily life.

Digital development is undoubtedly the new paradigm for insurance sales. To be available to
customers wherever they may be, so that they can purchase, give an opinion, simulate and
compare through digital channels. Insurance policies for Protected Bag, Protected Technology,
Protected Contents and ATM Robberies are available in Online Banking. The Banking segment
worked hard on the incorporation of greater and more expanded offers in digital channels and in
the continuous improvement of processes to ensure savings and a greater efficiency, promoting
usability to guarantee the best customer experience.

Loans

The placement of personal loans was boosted by a renewed offer and special facilities in line with
the needs of each segment, together with the sale through digital channels.

During 2018, in view of the widening of the market following the implementation of the UVA
Mortgage Loans, a communicational and management strategy was launched to position the bank
at the top in order to increase its market share. To such end, the Bank posted banners and
mortgage calculators in one of the major real estate portals of Argentina and entered into
agreements with brokers, large developers and realtors to strengthen lead generation.

With a view to generating a better experience for customers, the bank engaged in the detailed
study of the mortgage management end-to-end process, which resulted in considerable benefits
both for the bank and the customers. From the bank’s perspective: obtaining a greater
understanding of the web and the operating flow, management and performance indicators of the
Bank and of third parties, identification and automatization of key processes with reduced
processing times, planning of the investment in digital agencies and channels. From the
customers’ perspective: obtaining a more fluid communication as well as real time visualization of

the proceeding status, streamlined mortgage management and a significant reduction in times
from the first contact to loan settlement.

These achievements had a significantly positive impact on the product’s performance during the
first half of the year. However, as the product is highly dependent on the changes in the country’s
economic situation, in the second half of 2018 the product’s performance remained well below
expectations. Nevertheless, the Bank continued to focus on the increase of its market share and is
highly prepared to obtain it.

By mid-year, the pioneer “Bank Guarantee for Tenants” product started to be offered also in
areas outside the Greater Buenos Aires area. The product was developed taking advantage of the
change in customers’ preferences and needs, and relying on the management of its own Mortgage
Nodes, represented by officers specialized in real estate products and by a wide network of
brokers, which gave the product nation-wide scope.

The Bank also restructured the Pledge Loans focusing mainly on pricing redefinition, a new initial
cross selling model for borrowers, expansion of marketing channels through the incorporation of
several car dealers and the commencement, by the end of the year, with the transactions for UVA
loans.

Focusing on efficiency, the Bank redefined policies, the contract framework of transactions and
macro processes with special emphasis on critical issues. By the end of the year, the sections
related to the definition of credit policies applying to the product were under way.

Means of Payment

During 2018, traditional debit cards were replaced by chip debit cards for the segments more
exposed to the skimming. The Bank thus managed to rank high in the system due to the
introduction of chip Debit Cards.

In line with the Digital Transformation, strong focus was placed on the incorporation of
contactless technology in Mastercard Platinum and Black cards. By late 2018, the International
and Gold cards were added, thus completing the whole Mastercard portfolio, offering innovating
products to meet the demand of customers and facilitate their daily transactions.

Still focusing on Digital Transformation, migration continued from paper to digital card
statements, and automatic processes were developed for delivery of card statements by email.

A delivery service was implemented for Credit Cards, optimizing card delivery times and
activation.

During 2018, E&P executives and Sales Force Officers received training so as to start 2019
focused on new merchant settlements.

Segments

Entrepreneurs and SMEs
The Bank worked on lead generation and on the development of contact and generation
networks through agreements with SME associations and with presence in specific events related
to economy, finance, investment and franchise. As a result, the Bank recorded a significant
growth in the specific Franchises and Transportation subsegments established last year.

Taking into account the good results obtained by the subsegments developed, and based on the
survey of the life cycle behavior of companies engaged in various activities, the Health
subsegment was recently launched with high expectations, with tailor made value propositions,
like its predecessors.

Development of the differentiated service model continued to include over 80% of the branches
and over 90% of the segment’s customers. The Bank relied on specific executive profiles for
assistance of its customers, offering specialized services to larger SMEs and streamlined services
to smaller SMEs. As regards lead generation, the Bank has a special sales force trained through
the “Universidad PyME” with a fully developed commercial management model based on
specialists.

Hand in hand with the hard work done in lead generation and acquisition, campaigns were
launched in the media (“Lo Grande de ser una Pyme”) as well as products (the new Occupational
Risk insurance [ART]), focusing on the migration to automatic channels of the larger transaction
flow of involved customers.

Identité

The High Net Worth segment of Banco Supervielle continued to strengthen in 2018. With a 360°
turn, changes were made in the segment’s vision as regards customer contact and assistance.
Based on this new style, to announce the brand and architecture redesign, a rollout campaign was
launched via web and email. This change of vision required revisiting the way of thinking and
doing, adopting the good practices developed in other segments and improving the segment’s
distinctive aspects.

Under this premise, focus was placed on the customers’ life cycle, with the emphasis on the first
stages with a view to quickly activating and digitalizing each customer, reducing maturities and
promoting the redirectioning of transactions to automatic channels at an early stage. This resulted
in the creation of new service protocols compatible with these actions, and training sessions were
carried out at different structure levels and new internal service agreements were executed to
render lead generation and assistance circuits more fluid and consistent, reduce response times
and, therefore, enhance the customers’ satisfaction standard from the first contact.

One particular event that took place in 2018 was the launching of the Bank’s referral program,
for the design of which the online channel (Homebanking) was adopted as a primary means of
communication. The program is based on significant incentives for the referring party and more
benefits for the referred party, including product rebates, preferential rates and savings on credit
card consumptions, seeking additionally to favor the cross selling ratio of the newly referred
customers.

During the year, considering that investment is one of the distinctive aspects of high net worth
customers, developments were implemented for the consolidation of holdings and investments,
so as to boost the growth of the segment.

Senior Citizens

Banco Supervielle monthly pays ANSES benefits to over 1 million beneficiaries, including
pensions and social plans, and thus is the private bank with the largest presence in this segment.

In 2018 the Bank continued offering products and services in line with the needs of senior
citizens while further developing improvements in the value proposition and service model.
Based on the knowledge of the customers’ life cycle and their distinctive characteristics, the
redesign was promoted of the commercial management model with focus on the penetration in
high net worth customers and the implementation of specific policies to obtain the greatest
risk/benefit ratio in low income segments.

The service model was enhanced through Caja Rápida (Cash dispenser with biometric
identification) in its Service Centers, reaching a 100% coverage of the network and directing the
necessary effort to communication and training of its handling to favor acceptance and
acquaintance by senior citizens, with clear benefits in terms of waiting times and operation agility.

Based on the good results obtained, pilot tests were conducted to make this equipment available
at Service Center lobbies, allowing 24-hour use, thus reducing the customers flow during bank
hours.

In line with the efforts to improve our service level, a new customers flow manager was
implemented from which allow for a better management, control and study of transactions and
customer segments, as well as referral to the most favorable transaction channel according to the
transaction requested, streamlining daily transactions.

Individuals

In 2018, focus continued on the portfolio digitalization process, to further develop these
channels for placement of products and transactions of customers.

Ambitious lead generation objectives were maintained but special focus was placed on retention
processes taking into account the economic scenario, by providing benefits to retained higher
value customers.

By the beginning of 2018, credit policies of the Plan Sueldo subsegment were reviewed which
allowed better approval ratios of credit products, improving cross sell and activation ratios. With
the strategy of being the first choice bank, by the end of the year the loyalty program was
relaunched as the new Club Supervielle, with more and better benefits.

In line with the first choice bank and activation objectives, by mid-year, the new Journey of
Customers was defined, improving communication and the proposal within the first 90 days after
admission.

Contact Center

The Contact Center manages queries and complaints and sales to customers by phone, e-mail,
chat or social media.

The Bank continued working with a specialized team to solve certain money complaints and offer
immediate solutions. Management of the leads generated through digital campaigns was
enhanced, which allowed for its growth as a sales channel.

With a view to streamlining customer contact, work continued during the year to improve
response automatization processes. After the long way gone in this department, a high percentage
of queries now receive automatic response.

In 2018 the teams at the contact center, investment center, customer service area and processes
and continuous improvement area were integrated with the construction of the new ecological
building. Care for detail and the use of state-of-the-art technology permitted the generation of a
friendly work environment for work teams, strengthening synergies in the pursuit of commercial
and service objectives, which were fully attained during the year.

Specifically, as regards the call center, the implementation of new technological tools has allowed
obtaining a full vision of each contact, not only with the monitoring of conversations but also
with the detailed information obtained by each representative in order to respond a particular
query or request. This feedback was used to standardize the required information and facilitate
access and understanding, obtaining higher savings in terms of effort and time and aiming at
maximum efficiency in customer contact.

Strategic Leadership, Mendoza and San Luis

The Bank has the most extensive network among private banks in the Province of Mendoza and
has taken action to continue its development and growth with a strong regional commitment
offering exclusive benefits to its customers. Strong campaigns were launched to attract customers
with its own resources and through external marketers.

The Bank is the financial agent of the municipalities of the city of Mendoza, Godoy Cruz, San
Martín and Luján de Cuyo, and participates in bidding processes for services involving public
entities, aimed at rendering a quality all-inclusive service based on its expertise with government
entities. From the first contact, the Bank focuses on generating a win-win relationship with
customers, which is highly valued for the establishment of long term relationships.

In addition, as in previous years, the Bank invested in the most relevant sports, artistic and
cultural events in the community of Mendoza.

Banco Supervielle is the leading bank in the province of San Luis, with the greatest presence and
the widest geographic coverage. The Bank operates with private business franchises and renders
universal banking services to individuals and to small and mid-sized companies. Additionally, the

Bank offers its corporate customers in the Province of San Luis a wide array of financial services,
with main focus on infrastructure and construction projects.

The Bank has over 230 employees, 23 branches, 3 service centers, and 125 ATMs and self-service
terminals in the Province of San Luis. The Bank has 220,000 customers in the Province, 33,000
of which are civil servants and 18,000 are employees of private companies, whose salaries are
paid through the Bank. The Bank’s infrastructure represents 50% of all the province’s bank
branches and service centers. Its extensive network of 24 hour ATMs and self-service terminals
has bill recognition, online deposit processing and check image capture features.

The Bank acted as financial agent of the Province of San Luis until February 28, 2017. However,
up to this date, the Bank continues rendering financial agency services to the Government of the
Province. In December 2018 the Province of San Luis called for a public bidding to appoint a
financial agent. The term for submission of the offer ends on March 15, 2019, therefore the Bank
is currently working on the documents to be submitted in connection with the bid.

In 2018 the Bank was awarded the bid to become the financial agent of the City of San Luis.

Treasury and Finance Segment

Trading Desk and Institutional Sales

During 2018 Banco Supervielle’s trading desk, together with the commercial area, continued
dealing in public securities and by mid-year the Bank ranked 12 in the MAE’s ranking.

With institutional customers, particularly mutual funds and insurance companies, the Bank’s
share in the special checking account deposit market averaged 18.3% of the banking system.

Correspondent Banks

During 2018 the volume of foreign credit facilities increased, both as regards applications
received and use, which resulted in a clear support by international banks regarding foreign trade
and of working capital facilities.

In that sense, international entities offered short and medium term loans, with 3-year
disbursements under the IDB program by the end of the first half of the year.

Capital Markets

Banco Supervielle is one of the leading entities in the Argentine capital market. Since 2003 the
Bank has acted as arranger and underwriter in issues for over $42,000 million in the Capital
Market, with a wide array of products: financial trusts, negotiable obligations, etc. The Capital
Market division has an active role in the arrangement and management of private Syndicated
Loans.

During 2018 the Bank acted as arranger and underwriter of Financial Trusts for $1,832 million,
and Negotiable Obligations for $2,424 million, in both cases combining Banco Supervielle’s and
third party’s issuances, accounting for a 4.23% market share.

Public Sector and Intermediate Entities

In June 2018 the Bank entered into a 12-month agreement with the Province of San Luis to
continue providing the services required by the Province throughout the year.

Besides, in October 2018, Banco Supervielle was awarded the bid to be the financial agent of the
Municipality of San Luis, thus consolidating its presence in this segment in which the Bank serves
all the municipalities of the Province.

Additionally to the services rendered in Mendoza and San Luis, the Bank worked with the public
sector in the provinces of San Juan, Córdoba, Buenos Aires and also with National Universities.

Credits and Collections in Banco Supervielle

The Corporate Credit Area’s mission is to achieve an adequate credit quality of the asset portfolio
in line with the Bank’s risk appetite. Credit processes use scoring models in the different
customer segments (Senior Citizens, Plan Sueldo, Mercado Abierto) that support admission
decisions and credit facilities updates based on behavior models. An admission scoring model is
also used in the Entrepreneurs & SMEs segment.

Credit information is provided related to portfolio evolution, recovery levels, collection processes
and credit alerts in order to continue training the organization in credit matters and provide
information to the commercial areas so that they have credit management indicators and can act
directly on their portfolios.

In fiscal year 2018, training in Corporate Credit matters continued both in the Credit Area and in
the commercial areas. With the support of external advisors, courses were delivered to
commercial officers and analysts of corporate segments.

The Retail Collection Area implemented a new tool for the management of delinquent accounts
at the branches, through the daily linking of delinquent accounts, using a Behavior Score for a
more efficient collection management of call centers. A new collection call center was opened
and a new out-of-court collection strategy was developed by management cycle to ensure a 90-
day portfolio turnover. In San Luis the debit against accreditation of defaulting customers was
implemented and the agencies audit schedule was changed to include a preliminary cycle and a
review cycle for those with results below the defined standards.

The SME’s Area continued developing specific policies for the different subsegments, updating
existing policies and approving new ones. During 2018 the first review of behavior qualifications
was carried out, greatly contributing to the management and requalification of existing SME
customers. The different rating versions will contribute to a prompt response of customers and
portfolio control. The plan for 2019 is to start with massive qualifications in value chains so as to
deliver a significant number of prospective customers to the commercial area.

Regarding the Area of Credit for Large and Medium-Sized Companies and Financial Entities,
throughout 2018 the team of credit analysts was consolidated, which allowed facing a challenging
year due to the economic context volatility. During the second quarter portfolio review actions
were carried out to anticipate which economic sectors and specific customers were likely to be
more affected by the worsening macroeconomic situation. Based on these reviews the planned
actions for each sector/customer were monitored.

The Credit Intelligence area continued consolidating, with an Analytics team and a Management
Reporting team devoted to credit management. Employees with know-how and expertise in the
area were hired to improve data generation, making it more specific and timely.

The plan for 2019 is to continue preserving the quality of our credit exposures, reinforcing
portfolio review exercises and supporting those customers with sustainable activities and financial
capacity which require some kind of debt structure reprofiling.

Consumer Finance Segment

The Consumer Finance business of Grupo Supervielle is developed through its subsidiaries
Cordial Compañía Financiera S.A. and Tarjeta Automática S.A. Mila and Espacio Cordial de
Servicios were annexed to this segment in 2018.

Products

Cordial Compañía Financiera is a company specialized in consumer finance and financial services.
Its business model is based on providing financing solutions to specific target groups, mainly C2
and C3, with focus on two core pillars:

(i)

(ii)

Accessibility: flexible customer centric proposals adequate for the multichannel concept.

Diversification: tailored products that meet the customers’ needs in every stage of their
life with distinct value propositions for each cluster.

The multichannel concept requires that the company be present countrywide, and it is currently
settled in 22 provinces through 114 branches of its 3 main marketing channels:

 Walmart financial services

 Tarjeta Automática

 “Tu Crédito Hipertehuelche”

Results varied largely throughout 2018, with a first quarter in which CCF consolidated as one of
the three main companies in the sector. During that period the company continued with its plan
to increase the personal loan sector, plus a strategy oriented to increase the number of credit
cards and the level of consumption and activity. To achieve this goal, new advertising dynamics, a
strong BTL campaign (having the FIFA World Cup as core idea) and an improved global value
proposition were developed.

However, in March CCF started to experience a portfolio deterioration as a result of the
economic situation, which affected mainly the company’s target segments and increased the non
performing portfolios. In order to mitigate the risk, as from the second half of March, strong
adjustments were introduced in credit policies, increasing cut-off points and restricting the
borrowing capacity of customers and leads. During the second quarter of 2018 two additional
negative effects were added: rising bank funding rate and a strong decrease in demand, which
affected the profitability of the different channels.

In that scenario, during the second half of the year a deep restructuring of the commercial area
was carried out to face the new macroeconomic environment of Argentina, which implied a
decrease of placements. The restructuring included staff downsizing, the unification of channels
and reduction of businesses with higher risk potential. Besides, the use of shared services was
optimized and costs were subject to strict control.

The commercial strategy focused on the customer portfolio, strengthening the basic promotional
dynamics and reducing those proposals that might lead its customers to over indebtedness.

Once this process was over, the company focused on the preparation of a strategic plan to be
implemented in the last months of 2018 and during 2019, which is aimed at improving CCF
position as benchmark in the consumer financing segment, through the controlled development
of certain products.

It should be highlighted that in said plan the company’s main products were not discontinued but
they were adapted to the new reality. A breakdown follows of the main products by entity and
their main features:

 Open Credit Card: it is a financial tool that may be used for purchases in the stores of
merchants accepting Mastercard and for cash advances, within the limits determined by the
entity, which may be obtained in the Permanent Promotion Booths located in Walmart
Argentina S.R.L., Hipertehuelche and Tarjeta Automática stores.

 Retail Store Credit Card: these are credit cards issued by a retailer for purchases only in pesos
in that retailer’s stores. They are mainly intended to obtain customer loyalty and incremental
sales. At present, CCF operates this product only with Walmart Argentina S.R.L.



Insurance and other non-financial products: insurance policies for Personal Accidents,
Protected Bag, Health, Unemployment, Total Protection, Home Emergency, Extended
Warranty, Protected Technology and Home, under agreements with certain insurance
companies.

 Personal Loans: fixed rate cash loans using the French amortization system.

 Consumer Loans: Credit lines for the purchase of certain products; the transaction is

completed upon delivery of the purchased products.

Channels and Regions

The 2019 strategy concentrates mainly on the three channels which are described below, together
with its position during 2018, its situation and the competitive advantages to develop the 2019
plan.

Walmart Financial Services

In December 2014 CCF renewed the agreement as exclusive provider of Walmart financial
services, until August 2020. Due to the deterioration of the purchasing power of the consumer
segment customers in 2018, CCF focused on improving and adapting the credit card’s value
proposition to the new scheme. Growth drivers were as follows:

 New business dynamics under the concept: “a new benefit every day,” focused on giving our
customers access to basic needs products and reducing the offers to purchase electronic and
other durable goods.

 Renewed offer of distinctive products and promotions during key events or special dates

such as “Black Friday,” “Discount Marathon” and Christmas.

 Renewed business dynamics in Chango Mas, with an increase of cash backs and a proposal

adapted to the segment.

 Renewed Promotion dynamics with discounts by category and differential discounts.

The Bank also continued improving the global value proposition through the implementation of
new attributes which improve the quality of the program:


Implementation of Phase 2 of the Mobile App
 Migration from paper statements to E-Statements
 Customer Loyalty: part of the activity focused on finding improvements to increase

customers’ average tenure.

At present the Walmart channel concentrates much of the monthly placement of financial
products. The strategy in this business is to provide financial products for personal consumption
tied to the Walmart brand, with the co-branded Mastercard Walmart card being the main
payment instrument. The total product portfolio is as follows:

 Mastercard open credit card
 Walmart credit card
 Personal protection and health insurance
 $YA cash loans
 Consumer loans

In order to strengthen its presence and maximize customer satisfaction and leads, CCF has
financial services booths in all formats (large and medium-sized) in 79 sales and customer service
points.

The commercial strategy is focused on providing a broad product portfolio to meet the needs of
customers and leads both inside and outside the chain.

Competitive Advantages

CCF’s competitive advantages are as follows:

 Exclusivity agreement with Walmart to market financial products until 2020.
 Tie to the Walmart brand, which enhances customer loyalty.
 High levels of traffic due to its presence in one of the largest retailers in Argentina.
 Wide products portfolio to meet the needs of the segment.
 Business dynamics shared with the supermarket, which allows:
o Exclusive promotions (discounts, interest-free installments)
o Exclusive sales events

o Exclusive offers on special dates

 Experience Model Branches: a unique mix between a bank branch and a financial retailer,
which facilitates the customer experience through self-service terminals, exclusive services
areas, token displays, etc. 50% of the branches have this format.

 High levels of cross selling through multiple channels.

Tarjeta Automática

In December 2012 CCF began to market loans and cards under $YA and Carta Automática
brands through Tarjeta Automática branch channel of Grupo Supervielle.

Tarjeta Automática consists of a network of branches created in 1996 with a strong positioning in
the Patagonia region. At present it has 20 own branches in 9 provinces. CCF’s commercial
strategy in this channel is to offer a wide array of financial services, such as:

 $YA cash loans
 Mastercard Carta Automática open card


Individual protection insurance

The channel’s objective is the leadership in the Patagonia region through a differential proposal:
services similar to those of a bank but with an approach similar to that of a regional financial
entity. To meet the demand of our customers the network focuses on the marketing of loans as
the gateway.

Competitive Advantages

CCF’s competitive advantages in this channel are as follows:

 Widespread brand recognition of Carta Automática, especially in the southern region.
 Wide portfolio of competitive financial products.
 Excellent location of branches at both region and city level.
 Segmented promotions similar to bank offers.
 High levels of cross selling through multiple channels.

CCF is the leader in the consumer loan segment in the Carta Automática markets, with high
satisfaction and brand awareness levels among its customers (source: 2018 Quantitative Survey).

“Tu Crédito Hipertehuelche”

In 2017 CCF renewed for another three years the exclusivity agreement with Hipertehuelche. The
purpose of the new agreement is to further develop the financial services program in order to
reach those segments that still do not have access to financing, and also develop a differential
financial proposal to tie customers to the retail. To that end CCF launched miscellaneous
financial products, each of them associated with different purchasing behaviors. In turn, new
products and processes were implemented to offer financing to those segments with low
bankarization.

As in the Walmart channel, one of the core actions during 2018 was to increase the share of CCF
payment methods in Hipertehuelche. To this end the Bank worked along three lines:

Improved limits and value proposition


 “Anniversary Month” campaign
 Launching of products for segments with low bankarization
 Exclusive offers for purchases paid with CCF payment methods.

This resulted in a 10% increase in CCF’s share in several months, which evidences a consolidated
interdependence between both companies.

Currently the retail has 15 branches in the main cities in the southern region of Argentina. There
is a financial services stand in each branch where CCF’s products are marketed.

The financial services offered are:

Individual protection insurance

 Mastercard Carta Hipertehuelche card

 “Tu Crédito” consumer loans
 “Mi Vivienda”

This agreement allows CCF to strengthen its presence in one of its target regions and to focus on
the consumer loan niche, which is still little developed in the C2 and C3 segments.

Competitive Advantages

CCF’s competitive advantages in this channel are as follows:

 Widespread brand recognition of Carta Automática, particularly in the southern region, which

is used as umbrella brand in the open credit card product.

 Wide porftolio of competitive financial products.
 Exclusivity Agreement with Hipertehuelche.
 Business dynamics shared with the retailer.
 Consumer product for construction with high maximum amounts.

2018 Projects

In spite of the market difficulties, Cordial continued investing in the development of projects,
focused on improving the customer experience and the customer journey through the
optimization of touchpoints. To that end Cordial developed new information channels, improved
the existing technology and optimized many of its processes.

Within that framework, the following projects were developed:

 Launching of Mobile App Phase Two, which consists of:

o Statement preview
o Loan status
o Chat
o Push Message
o Recent movements preview

 Card embossing in all the Experience WMs branches

 New activation processes for inactive customers

 New improvements in the consumer loan origination system which shortens and simplifies

both back end and front end processes.

 New commercial model for Carta Automática branches. A pilot plan was developed, in
association with electronic goods and services suppliers to make an integral offer to
customers

 New model of Telemarketing management, which increased productivity three fold.

 New Phase of customer project. An external consultant was retained to cooperate with CCF

in the building of a new customer experience, which resulted in the:

o Implementation of a new NPS to measure portfolio loyalty
o Mapping of customer Journey, to attack all break points
o New segmentation based on the archetypes created during 2017, to adjust product

offer to each cluster

o Implementation of actions for a variety of moments of truth

In order to be positioned as the company with the largest financing products offer, CCF reached
an agreement with MILA (a company of Grupo Supervielle specialized in the marketing of car

loans) to offer car financing through car dealers using MILA channels. Thus, Cordial contributes
to Grupo Supervielle’s strategy to become a player in the car financing market. As this new
product is backed by a security interest, the ratio of non-performing loans is reduced.

In line with the launching of new products, during 2018 a new insurance strategy was developed,
focused not only on the placement but also on all the customer journey. This new plan has two
phases:

Phase 1: partly implemented in 2018, it is focused on communication channels and loyalty

1.
strategy.

Phase 2: to be implemented in 2019. It consists of the launching of new products specific

2.
to each customer archetype defined during 2018.

2019 Projects

In line with the strategy defined in 2018, during 2019 CCF’s management will be oriented to the
offer of more sophisticated financial products in order to enhance the customer experience along
its life cycle. Based on this objective, these will be the main projects to be developed:

Implementation of a new product origination application


 New digital marketing strategy
 New loan settlement
 New Insurance strategy:

o Launching of new products

 Pets
 Rental insurance
 New unemployment product
 Education insurance
 Women’s health
 Bike insurance
o Development of new channels
o Development of new experiences and communication channels

 New processes within the “Customer Experience” framework
 New customer acquisition models through indirect channels
 Development of existing digital channels: 3rd Phase of the mobile app for Walmart and Carta

Automática channels
Implementation of secured cash loans
Implementation of contactless technology for all Mastercard cards



 Re-branding of all portfolio brands

Digital Strategy

The aim of the digital strategy area for 2019 is to develop a 100% digital business of the various
business units of the Consumer Division. The digital strategy area is made up of the following
areas: KYC (in charge of the origination), Digital Engagement (in charge of the commercial and
operative management of digital channels), Data Analytics (formerly Commercial Intelligence)
and Digital Channels. These agile teams will be in charge of startup of the new origination
infrastructure which includes the decision engine, the process manager and the api, with focus on
the digital channel.

 Creation of the digital channel area in charge of the development of apps and public

webs

 Rebranding and Reengineering of digital channels. New app in iOS.
 Co-creation with Marketing the digital marketing area and defining an advertising strategy

in Facebook/Instagram, Google and Youtube.

 Automatization of the marketing processes related to communications with customers
(web push, push, mail, sms) and event detection (touchpoints) in physical and digital
channels. Development and implementation of a contracting policy for our customers.
 Development of product and service self-management within digital channels. From the
origination to product renewal, developing an experience throughout all the life cycle of
our customers (servicing).

 Development of the digital ecosystem of the car business, from financial products such as

secured pledge loans to the marketing of third parties involved in the value chain.
Implementation of a loyalty program by consumption and behavior (Gamification)
Implementation of QR Payments in digital channels through the SPS Decidir gateway
Implementation of Digital Refund through the debit card




 Development of the digital pledge pilot aimed at achieving 24 hour transfers.
 Operative efficiency (e-Statement, Technology and communications expenses)


Integration with MasterCard network functionalities such as: Consumption Analysis
(PFM), Credit Card Functionalities

 Creation of the data governance model with all core areas.
 Moving towards a Data Self-Management culture.
 Conversion of the data generated in the social media and our digital channels into

actionable information (Digital Analytics)

 Maintenance and evolution of experience metrics such as NPS.


Joint work with the Human Resources area to offer better solutions to our employees and
foster organizational change with a view to a more agile management.

Marketing and Communications

The goals of the Marketing and Communications area will be the creation, development and
positioning of a new digital Brand, the strategic planning and implementation of the digital
marketing plan: Google Ads, RRSS, Universal app campaigns and the strategic definition and
implementation of content Marketing.

Credit and Collection

The Company is carrying out a reengineering of the application assessment process to update its
processes and assessment systems.

This reengineering will allow for a faster and more flexible implementation of its credit policy.
The assessment process will continue to be centralized and seeks to automatize and streamline
most controls using information available from credit bureaus or, for example, Central de
Deudores [Debtors Central].

Besides, the management of credit policies was included in the Integral Risk Committee, securing
a more encompassing view of the assessment of said policies.

Since late March 2018 changes were implemented to the origination and cross sales policies to
limit the credit offer to those segments more exposed to the uncertainties caused by the
macroeconomic situation. In addition, the model of internal behavior Scoring used in cross sales
activities was improved and updated, and an improved model is being developed for the
evaluation of leads and customers without the required length of bank-customer relationship.

Models for income inference provided by credit bureaus were added to the existing processes,
thus improving the repayment capacity assessment and limiting customer indebtedness.

Finally, and taking into account the increase of the nonperforming portfolio ratio during 2018, a
thorough review was conducted and changes were implemented in strategies and collection teams
so as to offer adequate assistance to nonperforming customers. Statistical tools were incorporated
to set collection management priorities, introducing data enrichment processes and improving
collection agency assignment and control tools.

As a result of all those changes and adjustments in credit and collection processes, indicators of
early delinquency and non performing portfolios were stabilized during the second half of the
year.

Espacio Cordial de Servicios (Cordial Servicios)

As a result of the restructuring conducted in August 2018, Cordial Servicios became part of the
consumer financing sector of Grupo Supervielle.

Cordial Servicios was established in October 2012 and started doing business in December of
such year. The business was created to sell various types of goods and services related to

insurance, tourism, health care plans and/or services and other goods and services provided for
in its corporate by-laws.

During 2018 Cordial continued operating and growing in the direct and indirect channels already
developed. Regarding the open channel, it continued growing through sales points located at
service centers of Banco Supervielle throughout the country, trading mainly home appliances,
health plans, prepaid services and tourism with new products and group tours for senior citizens.
In Alliance with Cordial Compañía Financiera, it was present in six branches of the supermarket
chain Emilio Luque and in La Plata branch of Carta Automática.

As regards indirect channels, the telephone channel continued to be used for the sale of prepaid
health services and catalog sales of home and electronic appliances.

The digital channel, through Tienda Supervielle Marketplace, was used to sell home appliances,
technology, home and furniture, sports, wellness and beauty, toys, perfumes, tires and
accessories. As regards the tourism category, Tienda Supervielle continued growing as a sales
channel and developing new products related to flights, hotels, trains, travel assistance and
experiences such as the FIFA World Cup 2018. In November 2018, Tienda Supervielle Viajes
became a part of the Rewards program of Banco Supervielle, as the main supplier of flights and
hotels. In the services category, the sale of health plans continued through a strong online
strategy in the social media and developing digital self-management products.

During 2018, 65,000 home appliances were sold, which generated an income of over $280
million, and 100,000 service plans, which generated an income of over $423 million.

The goal of Cordial Servicios for 2019 is to increase the income in its 78 sales points and the
indirect sales channels already developed. As regards insurance and services categories, new
products are being developed for the face to face and online channels, and for alliances with
certain strategic partners. As regards Tourism, the B2B channel will begin to be developed, with
the corporate sale to Banco Supervielle. As regards Tienda Supervielle, the travel section will
expand to new customers through the Blanca Brand, and the product category will expand to
sections such as apparel, supermarket, cars, among other, and will be integrated to Club
Supervielle.

Microlending S.A.U (Mila)

Microlending S.A.U (Mila) is a Company devoted to originating car financing loans and was
acquired by Grupo Supervielle on May 2, 2018.

In 2018 the Company originated pledge loans for a total of $ 660 million from 6,948 transactions.
That represented a year-on-year decrease of 17% in terms of capital and 29% in terms of
transactions.

The abovementioned performance occurred in an economic environment featured by a strong
reduction in the sale of cars, both new and second hand. In 2018 a total of 772,477 new cars
(167,406 of which were financed through pledge loans) and 1,565,045 second hand cars (98,807
of which were financed through pledge loans) were sold in Argentina. As compared to 2017, the
sale of new cars fell by 10% while the sale of second hand cars fell by 7%. The financing of new
cars fell by 25% while the financing of pre owned cars fell by 22%.

Throughout the year MILA operated with five insurance companies, offering a wide array of
products, and generated an income that represents about 20% of the total income of the
Company.

The goal for 2019 is to expand the placement of transactions, and therefore an increase of the
sales force of MILA in different regions of the country to achieve a greater capillarity to its
network.

Besides, commercial actions will be strengthened to increase penetration in the car dealers
channel (increased supply through the launching of loans with UVA interest rates).

Supervielle Asset Management (SAM)

SAM offers mutual fund services designed to cover a broad range of possibilities in investment
objectives and risk profiles. It manages the PREMIER family of funds.

The PREMIER family of funds consists of a Money Market Fund (Premier Renta CP in Pesos),
three Argentina Short Term Fixed Income funds in Pesos (Premier Renta Plus, Premier Renta
Fija Ahorro, Premier Capital), five Argentina Fixed Income and Mixed Income funds in Pesos
(Premier Renta Fija Crecimiento, Premier Commodities, Premier Inversión, Premier Balanceado
and Premier Renta Mixta), two Argentina Fixed Income funds in US dollars (Premier Renta
Mixta in US Dollars and Premier Performance), a Variable Income fund (Premier Renta
Variable), and an Investment Fund in SME securities (Premier FCI Abierto PyMEs).

Assets managed at the end of 2018 show a decrease of about 7% (in average as of December),
similar to the results of the sector.

The Money Market fund showed an increase of 262%, mainly due to the investments of
institutional customers, representing 40% of the managed funds in December 2018, as compared
to 10% in December 2017.

The Argentina Short Term Fixed Income funds in pesos (t+1) fell by 57%, and its share on the
total managed funds fell to 28% in December 2018, as compared to 61% in December 2017. As
from May, due to the devaluation and the rise of interest rates, the yield became significantly
volatile and corporate and individual customers began to redeem their funds. The funds managed
showed a recovery as from the fourth quarter of the year, due to the stabilization of interest and
exchange rates.

The Argentina Fixed and Mixed Income funds in US dollars recorded a 17% growth in terms of
pesos. However, in terms of US dollars the funds recorded a 43% fall. The share on the total
managed funds increased to 21% in December 2018 as compared to 17% in December 2017. In
spite of the fact that during the last quarter the fall ceased, investments in this segment have not
yet recovered.

The three product segments mentioned above concentrate 89% of the managed funds, and
constitute the core business of SAM’s Mutual Funds business.

As regards type of customer of the portfolio, corporate customers fell by 11%, institutional
customers grew by 36% and individual customers fell by 60% in 2017. Thus, the customer base
changed as compared to 2017, and at present corporate customers represent 49% (51% in
December 2017), institutional customers represent 42% (29% in December 2017) and individual
customers represent 9% (20% in December 2017).

Products are marketed through the channels of the Depositary Company, Banco Supervielle,
representing 99,6% of managed assets, and External Placement Agents, which make up the
remaining 0.4% of the managed assets.

Banco Supervielle places funds through the face-to-face channel of its Branch network, Centro
Integral de Inversiones (call center) and mainly through the Home Banking online channel.

Transactions carried out by corporate customers through Home Banking reached 60% in
December 2018, which rises to 87% if Retail Banking corporate customers are considered.

In December 2018, 95% of the transactions carried out by individual customers were through
Home Banking.

In June 2013, SAM was ISO 9001 certified for meeting the requirements of the quality
management system on "Design and development, marketing, management, administration and
control of Mutual Funds." In October 2018, IRAM's review audit recertified SAM, updated to
the IRAM ISO 9001:2015 standard.

In July 2018, the Centro Integral de Inversiones of Banco Supervielle started operations related
to Mutual Funds transactions.

In December 2018 Premier mutual funds began to be marketed through the IOL platform under
a Mutual Funds Distributor agreement.

The objectives for 2019 are based on the following pillars:

Launching of New Products:

Following the regulation of certain recently amended laws, new mutual funds will be developed
for Qualified Investments, Pension Savings and Foreign Funds.

Commercial Policies:

More marketing and communication actions will be taken to increase the share of Premier
Mutual Funds within the Mutual Funds Industry of Argentina.

The Premier Mutual Funds page will be renewed with a new look and feel and the incorporation
of Investor’s Profile and Investment Simulator.

Automatic Channels:

The update of the Home Banking channel platform for Banco Supervielle customers is scheduled
for the second half of the year. A new version of the VFHome app, improved for customer
experience, will be included.

InvertirOnLine

InvertirOnLine.com is a technological Company of the financial sector, which was created by the
end of 2000 as a company that could seize the growth opportunity of the e-trading segment in a
region where both the financial sector and the new technologies were lagging as compared to
other more developed regions. The company’s team work understood that the globalization
process lies on three pillars: “democratization of information,” through video cable networks,
satellites, cell phones, Internet and the Access to information in general, “democratization of
technology,” due to computers and Internet, and “democratization of financial services” whereby
everyone may have access to various financial services such as the Stock Exchanges.

Nowadays InvertirOnline.com (IOL) specializes in “Online Trading,” its mission being the
“Democratization of Financial Services,” based on the following pillars: technology, innovation
and scalability. Some of its competitive advantages are:

1. . More than 15 years of experience in the market
2. . Created and designed as a 100% online broker
3. . Wide array of services through a user friendly platform
4. . “1 to N” scalability
5. . Proprietary technology. Knowhow of the Fix protocol
6. . It is the most visited Investment and Finance website of Argentina
7. . Education platform to democratize brokerage services
8. . Leading position in the social media

Pursuant to Provision No. 2.392 of the Argentine Securities Commission, dated September 22,
2014, InvertirOnline S.A. was registered as a (non-distributor) Broker-Dealer [Agente de
Liquidación y Compensación Propio] under number No. 273. Besides, pursuant to Provision
No. 2.926 of said body, dated November 24, 2015, the Company was registered as Mutual Funds
Distributor [Agente de Colocación y Distribución Integral de Fondos Comunes de Inversión]
under No. 1.

As part of Grupo Supervielle the Company will be able to leverage its growth and take advantage
of the synergy of the different businesses of Supervielle.

The 2019 projects include the development of products aimed both at sophisticated users, such
as financial products operated in ROFEX, and at users who are not acquainted with financial
products, such as primary and secondary offer of LECAPs, US dollar Treasury Bills, purchase
and sale of foreign exchange, among other. Besides, early in 2019 it started to offer Access from
the Argentine account to the main markets in the USA, such as NYSE Arca, NASDAQ, CBOE
Edge, CBOE BATS, with a wide offer of products.

Supervielle Seguros

In 2018 the Company incorporated the marketing of special multiple peril policies focused on the
Entrepreneurs and SMEs segment.

The company is continuously offering new products to the different customer segments of
Grupo Supervielle companies: high net worth
(Identité), senior citizens,
Entrepreneurs and SMEs, customers of the Consumer Financing and Medium and Large
companies segments. We will be developing different marketing channels.

individuals

Supervielle Seguros S.A. focuses on the marketing of insurance policies, such as Personal
Accidents, Protected Bag, Life, Home, Protected Content, Total Protection, Broken Bones and
Protected Technology through the networks of Banco Supervielle S.A. and Cordial Compañía
Financiera S.A, as well as on Credit Related and other insurance intended to meet the needs of
their different channels and customers.

Though the current organizational structure remains flexible, focused on critical strategic and
control duties, supporting the remaining processes with core areas of Grupo Supervielle S.A. and
with the advice of independent specialists through the implementation of services agreements,
the company began during this year with the survey of processes to determine the investments
required in technology and infrastructure, with a view to optimizing its processing capacity.

Objectives for 2019

The objective of Supervielle Seguros for 2019 is to consolidate the company's current insurance
business and the development of the business of Health and Unemployment Insurance, among
other, focusing on the Entrepreneur and SMEs, medium and large companies, senior citizens and
Consumer Financing segments. Additionally, an evaluation shall be performed of all those
products that contribute to the provision of financial services and insurance to Grupo
Supervielle's customers.

Supervielle Seguros will continue implementing the defined information technology to optimize
the commercial management and internal processes, implementing all the available technology
for the digital transformation of the businesses.

Other Companies

Sofital

Sofital is mainly a holding company.

B.5. Information Technology and Operations

During 2018 the Corporate Technology and Operations Management of Banco Supervielle
continued adapting its functional scheme to its strategy, in line with the business, and enhancing
the existing capacity.

The area’s strategic planning was updated, with a three-year scope, based on the following lines:
business strategic plans (initiatives executed by IT in line with the Bank’s strategies); the evolution
of current technological capacities arising from improvement opportunities; and finally, the
definition and execution of IT strategic plans, which correspond to technological strategic plans
that pave the way for the evolution in areas such as technological infrastructure, applications,
service operation, quality and governance.

The business’ strategic projects were grouped in 5 programs: Cash Management, Digital Banking,
Service Model, Senior Citizens, Commercial Platform and Efficiency. Within these programs the
following projects were concluded: new functionalities for Collection, Direct Debit and Securities
in custody for companies; renewal of the website with a new use experience accessing from any
appliance, improving visibility and the offer of products and benefits offered by the Bank; the
implementation of the online sale of account and credit card packages for individuals with digital
experience, either through the sales force or self-management; migration of all corporate
improved use experience and functionality;
customers to the new platform, with an
implementation of a new solution for queue management in service centers and installation of
Cash Dispensers to improve the service to senior citizens.

As regards the evolution of IT capacities to guarantee an efficient operation model and the
positioning of the area as enabler of Online Banking, the advances in Channel architecture,
Commercial Platform and Integration are worth mentioning, as well as improvements in Project
management and solution-building model through the adoption of agile and modern software
technologies.

In line with specific IT projects, we can mention the reengineering of services offered by the
integration layer, improvements in the core applications processing scheme and the advances to
improve employees’ productivity (better WiFi connection and renewal of desktops for
notebooks, datacenter improvements (virtualization of low platform servers, data base migration,
monitoring) and the adoption of cloud platforms.

Besides, a great advance was made in connection with the Information Security strategy, such as
improvements in the cybersecurity infrastructure and a project to improve monitoring and
electronic fraud prevention.

Centralized Operations

At the beginning of 2018 the Operations area of Banco Supervielle started a transformation
process related to their work and service methodology through the implementation of the LEAN
philosophy as pilot test in one of its teams. A dedicated space was prepared, the “LEAN Room,”
where training and team meetings are carried out. 22 employees from Retail and Corporate areas
were trained in the LEAN philosophy and tools. The most significant processes of the pilot area
were evaluated to identify problems, waste and improvement opportunities.

Work cells were designed, each in charge of one person, management indicators and visual panels
were generated, and training plans on polyfunctionality were established to achieve the expected
efficiency.

An initiative originated during the kaizen (continuous improvement) meetings was implemented,
which consists in improving the customer experience by reducing the time of response in cases
of dispute of charges for local purchases made with debit cards.

Work also started with other Operations teams, with the aim of achieving total implementation
by 2020.

B.6. Digital Transformation

During 2018 Banco Supervielle created the Transformation Area, which includes the following
areas: Digital Channels and Transformation, Innovation, Customer Experience and Processes,
Strategic Projects, Management Control, Commercial Productivity and Data. Transformation
encompasses organization-wide, customer-centric end to end digital processes. The focus on
digital innovation enables the exploration of new businesses, processes and technologies to
determine the vision of a bank of the future. It is focused on the Bank’s efficiency and customer
experience, by segment and channel, with the aim of redefining the organization. Continuous
improvement of data governance facilitates the measurement of status and progress, and enables
the acceleration of digitalization.

Transformation includes the use of new work methodologies, new technologies and a strong
cultural change within the Organization. To meet the current needs new Agile technologies are
adopted, where readiness to change and a prompt delivery of value are a competitive advantage.
This results in more collaborative and autonomous work teams, with shorter and more efficient
turnaround times.

In the Digital Channel areas, access to the new Online Corporate Banking was implemented
gradually, taking the building and migration of functionalities to a new level. The launching was
aimed at simplifying and accelerating process times, promoting self-management in the digital
channel.

Access to Online Business was unified to the Individuals mobile app, the Bank thus becoming
part of the group of Banks offering digital services from a mobile app. New modules were
introduced for authorizations, balances and movements, face biometrics to access the application
and other services, in addition to the analytic results module.

Through an evolutive process, improvements were introduced in check image capture to
accelerate adoption and usability of the Checks application, a mobile app that enables check
deposits through images.

Supervielle is the first Bank in Argentina that has been certified by GS1 Internacional
(Certification on Electronic Document Exchange) for electronic data exchange. Through the
iFactus channel customers may receive invoices in other standard formats, have access to new
health and analytics monitors and to debt information, and collect payments using the payment
button.

Face biometrics was implemented to access Individuals and Businesses Mobile Apps, in line with
security parameters and control monitoring.

In order to improve the Customer Experience, the new Supervielle.com.ar website was created,
following the concept of a modern customer experience in line with the best international
practices, friendly in terms of use and maintenance, which facilitates access to information related
to Banco Supervielle financial services both to customers and leads, with a view to attracting new
customers in the platform. This new and modern UI represents a step towards an enhanced
image and experience in all the bank’s digital assets.

Improvements were made to facilitate access to information of financial products, in
implementations within the online Individuals banking such as a new access design, foreign
currency exchange with non-residents, online resetting of digital password through SMS, a new
referral program for high income customers, unification of Club Supervielle loyalty program and
making UVA fixed term deposits.

In line with the growth of UVA Mortgage Loans the www.hipotecarios.supervielle.com.ar
website was launched, where those customers interested in these loans may make consultations,
simulate instalments and prequalify in three simple steps, and digitally submit the required
documents.

As regards Digital OnBoarding, a platform is under way to allow the digital acquisition of
financial products. To that end a pilot was used as a model to redefine the experience and work
on the design of a new tool during 2019, which will simplify the registration process of New
Customers, with an end-to-end vision.

The Customer Experience management prioritizes the customer experience in every initiative and
interaction. The aim is to consolidate the capacity to improve projects and processes across the
organization. It also enables the unification of methodologies such as Design Thinking and the
implementation on business solutions based on customer journeys.

In 2018 the active listening of customers was extended both to face-to-face and digital
interactions, and relational studies were introduced to achieve an integral Net Promoter Standard.
Through continuous improvement actions the average NPS of the branches was improved, and
the good levels obtained in 2017 were maintained in the Service Centers. As regards business
development the Mortgage Loan product was transformed, based on experience levers, achieving
an excellent level of recommendation.

The Processes Management is in charge of the design of processes, measurement of operational
performance and internal rules. Its mission is to execute the plans to achieve an efficient and
dynamic operational model in line with business requirements. Together with the business and
technology areas, these teams participated in more than 30 initiatives and several continuous
improvement requirements. During 2018, the objective was process digitalization, with the focus
on Origination, products such as Mortgage and Pledge Loans and tactic actions to improve
efficiency.

During 2018, the Data Management developed the Data Governance model for the Bank. Some
of its most important results include the definition of functional architecture, with specific
governance areas, such as Users, Chief Data Officer, Technology, and other, the determination of
Policies and Fora for data governance and the design of the Functional Model development
roadmap.

During the second half of the year, the Governance Model was implemented and a large set of
data was entrusted to the Chief Data Officer, defining the KPIs to determine the quality of
governance data.

The Digital Innovation team, together with other areas, designed the first smart digital contracts
based on Blockchain technology, which offer greater speed, flexibility and security when hiring
services. Thus the Bank is the first entity to develop solutions based on this technology, which
has led to a paradigmatic change with the elimination of intermediaries and the decentralization
of management.

With the social media and shared security in full blossom, the Digital Innovation team is also
trying to offer a simpler and more secure access both to customers and leads, including face and
voice biometrics and remote document capture.

In short, the Transformation Management supports the Bank’s digitalization and modernization
process to increase efficiency and enhance customers service.

B.7. Digital Innovation Developments

In 2018 the BCRA’s policy to promote innovation and entrepreneurship continued.

- In May 2018 the BCRA provided for the creation of a Uniform Virtual Code (CVU) which
enables the identification and traceability of transfers from sight accounts when at least one of
those accounts belongs to a payment services company. The objective of the CVU is to facilitate
inter-operability among sight accounts and payment services, and its format is compatible with
the Uniform Banking Code (CBU).

- The BCRA initiatives continue, such as the Financial Innovation Program (PIF) and Financial
Innovation Desks, a public-private work space formed by experts from the Central Bank, Fintech
companies, Banks, entrepreneurs and public and private entities, which aim is to develop tools
and solutions to increase financial inclusion and payment infrastructure, technologies and cross
cutting systems, alternative credit and savings channels and solutions through the use of
Blockchain technology.

Within this context, Banco Supervielle and a group of 7 local capital Banks participated in
Arfintech capitalization rounds and invested in investment, payment, insurance and cybersecurity
companies. In 2018 Grupo Supervielle also launched an initiative to work in collaboration with
fintech and insurtech companies through investment vehicles, with the objective of entering into
associations with exponential companies that generate yields for the fund and synergies with
certain Group’s strategic areas. The aim is to create incremental business opportunities for the
companies and the portfolio’s businesses. Two capitalization rounds were completed this year by
the Trust and investments were made in insurance brokerage companies and solutions for
businesses.

C. Board of Directors, Structure and Internal Control

Board of Directors

As set forth in section nine of the Corporate Bylaws, Grupo Supervielle is run and managed by a
Board of Directors that consists of three to nine members. The Shareholders' Meeting may also
appoint the same number or less of alternate Directors.

At present, the Board of Directors is made up of eight members, with no alternate directors, all
of whom reside in Argentina.

As of this date, the members of the Board of Directors are:

Chairman

Julio Patricio Supervielle

First Vice-Chairman

Jorge Oscar Ramírez

Second Vice-Chairman

Emérico Alejandro Stengel

Directors

Atilio Dell’Oro Maini
Laurence Nicole Mengin de Loyer
Jorge Mocetti
Richard Gluzman
María Gabriela Macagni

It is the Board’s responsibility to promote and review the general business and risk policies and
strategies and to control that measures are taken at management level to identify, monitor and
mitigate the assumed risks.

It is the Board’s duty to manage the Bank's businesses and approve general policies and
strategies, in particular:

 the strategic or business plan, as well as management objectives and annual budget;
 investment and financing policy;
 Corporate Governance Code;
 corporate social responsibility policy;
 risk control and management policies and all other measures aimed at regularly

monitoring internal data and control systems;

 on-going training programs for directors

The total amount paid or allocated to payment of fees to Directors of Grupo Supervielle S.A. or
its subsidiaries amounted to $124,727,802 in 2018, compared to $73,152,978 in the prior fiscal
year.

Statutory Audit Committee

The Statutory Audit Committee in charge of supervision of the Company is made up of three
statutory auditors and three alternate statutory auditors.

Under the Argentine Companies Law, the duties and responsibilities of the Statutory Audit
Committee are to supervise that the company’s management of Grupo Supervielle S.A. is carried
out according to law. Statutory auditors do not take part in the management and cannot hold
managerial positions. They are in charge, among other, of the preparation of the yearly report on
the financial statements for shareholders.

Statutory auditors are appointed by the Annual Shareholders' Meeting, for a term of one year,
and may be re-elected. Alternate statutory auditors take office in case of temporary or permanent
absence of statutory auditors.

As of this date, the Statutory Audit Committee is made up as follows:

Statutory Auditors

Enrique Barreiro
Carlos Asato
Valeria del Bono Lonardi

Alternate Statutory Auditors Carlos Lose

Roberto Boggiano
Carlos Ojeda

Corporate Governance

The Corporate Governance Code adopted by Grupo Supervielle seeks to reflect the best
corporate governance practices based on stringent standards of full information, efficiency,
control, ethics, investor protection, equal treatment of investors and corporate transparency, so
as to create and preserve value for the Bank, its shareholders, customers, employees and the
general public.

The Corporate Governance Code adheres to the guidelines of the Rules of the Argentine
Securities Commission (CNV Rules). The Code also follows the guidelines of the Central Bank of
Argentina, which are observed by its subsidiaries Banco Supervielle and Cordial Compañía
Financiera.

Grupo Supervielle has also adopted a Code of Ethics that establishes the main guidelines of
professional and labor conduct for all employees of the Bank and their suppliers.

C.1. Committees

Committees reporting to the Board of Directors

C.1.1. Audit Committee

By virtue of the Capital Markets Law (No. 26.831) GS must have an audit committee, which is in
charge of assisting the Board in the supervision of financial statements and the control of
compliance with the policies, processes, procedures and rules set forth by GS and its subsidiaries.

The Rules of the Audit Committee establish its specific duties:

ii.

iii.

iv.

vi.

vii.

viii.

Supervise compliance, adjustment and effective operation of internal control systems to
ensure reasonability, reliability, adequacy and consistency of the financial statements and
the accounting or financial information of Grupo Supervielle and of the financial
statements and information consolidated with its subsidiaries.
Supervise proper and timely compliance with applicable regulations on money laundering,
conducts in securities markets, data protection and disclosure requirements made by
competent authorities.
Ensure that the Code of Ethics and all the rules of conduct codes both internally and
before securities markets, comply with the regulatory requirements and are appropriate for
Grupo Supervielle.
Verify that the audit policies are complete and updated, and once approved submit them to
the Board of Directors for consideration and approval.
Become acquainted with the risks inherent in businesses of Grupo Supervielle (financial,
reputation, legal and operative) and monitor compliance with the policies designed to
mitigate those risks.
Evaluate the quality of internal processes with a view to improving the quality of customer
service, risk control and efficiency of Grupo Supervielle’s operations.
Ensure that the Board properly ratifies the decisions made by the Committees when
required by corporate governance rules and supervise compliance with said policies.
Seek to maintain an adequate internal control in all its related companies, aimed at
minimizing risks through the consolidation of good control practices generated from the
experiences of each of said companies.

Additionally, the Audit Committee prepares an annual work plan which is submitted to the Board
of Directors and the Statutory Audit Committee. The members of the Board, of the Statutory
Audit Committee and the independent accountants must attend the meetings of the Audit
Committee if so required, and provide full cooperation and information. The Audit Committee
may retain experts and advisors to help them in their tasks and has unlimited access to all the
information and documents of the Company.

The Audit Committee is made up of three directors who, during the fiscal year ended on
December 31, 2018 acted as independent directors, pursuant to the provisions of the Argentine
Securities Commission.

C.1.2. Anti-Money Laundering and Terrorist Financing Committee (AML and TF).

Grupo Supervielle has an Anti-Money Laundering and Terrorist Financing Committee, in charge
of:

ii.

iii.

iv.
v.

Verifying compliance with current regulations on anti-money laundering and terrorist
financing applicable directly and at subsidiary level, to ensure that Grupo Supervielle and its
subsidiaries have an adequate compliance level in line with the best practices in the subject.
Becoming acquainted with amendments to applicable regulations, ensuring that the internal
policies and procedures manuals are updated accordingly.
Verifying, and conducting surveys on, the best market practices on money laundering and
terrorist financing prevention, promoting their application by Grupo Supervielle and its
subsidiaries.
Ensuring due compliance with the duty of disclosure to the corresponding authorities.
Carrying out all those duties established by the Financial Information Unit (UIF) and other
provisions applicable thereto.

Additionally, the Anti-Money Laundering and Terrorist Financing Committee prepares an annual
work plan which is submitted to the Board of Directors and the Statutory Audit Committee. The
members of the Board, of the Statutory Audit Committee and the independent auditors must
attend the meetings of the Audit Committee if so required, and provide full cooperation and

information. The Anti-Money Laundering and Terrorist Financing Committee may retain experts
and advisors to help them in their tasks and has unlimited access to all the information and
documents of the Company.

The Anti-Money Laundering and Terrorist Financing Committee is made up of two Directors
(one of which acts as the Compliance Officer with the Financial Information Unit (UIF) and as
Chairman of the Committee and another Director who acts as Alternate Compliance Officer and
Reporting Member with due knowledge of Anti Money and Terrorist Financing Policies, who
regularly submits to the Committee a report of the situation and relevant facts of each of the
related companies.

C.1.3 Risks Committee

The Risks Committee’s duties include:

ii.

iii.

iv.

vi.

vii.

viii.

ix.

Deal at institutional level with strategies and policies applicable to the management of
credit, market, interest rate, liquidity, operational risks and any other risks that may affect
GS and its subsidiaries pursuant to the applicable regulations and best practices, verifying
their proper implementation and enforcement. Submit to the Board of Directors, for
approval, the strategy and policy documents on risk management. Validity of said
documents must be reviewed on a yearly basis.
Define the risk appetite levels and tolerance of Grupo Supervielle at consolidated level and
the global risk profile for approval by the Board of Directors.
Approve the threshold and limit structure for risk management as well as follow up on the
corresponding indicators. This includes the standalone Risk Dashboard and Consolidated
Risk Maps to control trading transactions of trading portfolios.
Regularly monitor the different risks of Grupo Supervielle and the application of strategies
and policies defined for their management.
Evaluate the capital adequacy ratio of Grupo Supervielle, analyzing the Annual Capital Self-
Assessment Report (IAC) prior to submitting it to the Board of Directors for consideration
and approval.
Define the policy and methodological framework for stress tests as part of the risk
management of Grupo Supervielle. Approve
individual and
comprehensive stress tests for different risks; evaluate and discuss the results of stress tests
and make recommendations on the contingency plans to be applied, using the results of the
tests to consider the application or review of limits and submit all the results to the Board
of Directors for approval.
Design effective information channels and systems to keep the Board of Directors duly
informed about all risk management issues.
Approve the methodological framework and developments of quantitative models used for
risk management and the internal methodological framework and internal models
developed for the calculation of the economic capital of each of those risks.
Become acquainted with the information circulars and rules on risks issued by any
regulatory agency applicable to any company of Grupo Supervielle, as well as the impact of
the application of said information circulars and rules on the Bank’s current operations.

the scenarios for

The Risks Committee is made up of at least two Directors, the CEO, the CFO, the CRO, the
Chief Credit Officer, the Credit Risk and Business Continuity Manager and the Financial Risk
Manager.

C.1.4 Ethics, Compliance and Corporate Governance Committee

The Ethics, Compliance and Corporate Governance Committee is in charge of assisting the
Board of Directors in the adoption of best corporate governance practices to maximize the
growth capacity of GS and its subsidiaries and to prevent value destruction.

The Ethics, Compliance and Corporate Governance Committee's duties include:

Prepare and submit to the Board of Directors for approval the Corporate Governance
Program and the Ethics and Compliance Program that will be oriented to the gradual
adoption of international ethics, compliance and corporate governance standards by GS
S.A. and its subsidiaries.

ii.

iii.
iv.

vi.

vii.

viii.

ix.

xi.

xii.

xiii.
xiv.
xv.

Propose to the Board of Directors an annual agenda and schedule for the execution of the
Corporate Governance and Ethics and Compliance Programs.
Define ethics and compliance policies and procedures.
Foster and supervise compliance with the Corporate Governance and Ethics and
Compliance Programs and inform the Board of Directors of any deviation and make any
recommendations as may be deemed convenient.
Become acquainted with the information circulars and rules issued in particular by the
Argentine Securities Commission, the Central Bank of Argentina, the Superintendence of
Bodies Corporate and in general by any other supervisory body, as well as the impact of the
application of said information circulars and rules on Grupo Supervielle's corporate
governance practices.
Make recommendations to the Board of Directors regarding the gradual adoption of the
provisions of General Resolution No. 516/2007 (as supplemented) of the Argentine
Securities Commission on the Corporate Governance Code and the provisions of
Communication “A” 5201 (“Guidelines for Corporate Governance of Financial Entities”)
of the Central Bank of Argentina (as supplemented).
Become acquainted with the recommendations of the Basel Committee and make
recommendations to the Board of Directors for their gradual adoption.
Submit to the Board of Directors an Annual Compliance Report of the Corporate
Governance objectives.
Review the results of the inspections conducted by the BCRA and other regulatory
agencies and consider the independent auditors’ qualifications on matters related to ethics,
compliance and corporate governance.
Inform the Board of Directors on a quarterly basis on the general status of the Corporate
Governance and Ethics and Compliance Programs as well as on incidents and complaints.
Make proposals to the Board of Directors for possible changes to this Committee’s
Internal Rules so as to improve its goals and functions.
Make proposals to the Board of Directors for policies and procedures for the assessment
and self-assessment of the members of the Board of Directors and of the Board of
Directors’ committees.
Make recommendations to the Board of Directors regarding its composition.
Define policies and guidelines regarding Grupo Supervielle's related parties.
Perform any such duties as are assigned to this Committee by the Board of Directors.

The Ethics, Compliance & Corporate Governance Committee shall be formed by at least three
Directors, the CEO and the Compliance Officer.

C.1.5. Human Resources Committee

The Human Resources Committee is a body of Grupo Supervielle S.A. whose decisions also
apply to its subsidiaries in charge of approving and overseeing the incentives systems, including
those aligned with the risk appetite established by the Board, and variable compensation
(bonuses, variable compensation, profit sharing), participating in the setting of fixed and variable
compensation policies and in performance assessment systems.

The Human Resources Committee approves and monitors the compensation policies of Grupo
Supervielle and its subsidiaries, and also cooperates in the design of compensation policies and
performance assessment systems.

The duties of the Human Resources Committee include, among other:

ii.
iii.

Submit to the Board of Directors proposals for appointment of directors of Grupo
Supervielle and its subsidiaries and of the other officers as decided by the Board of
Directors.

Submit to the Board of Directors proposals regarding directors compensation policies.
Prepare an annual report on directors compensation policies and submit its conclusions

and recommendations to the consideration of the Board of Directors.

iv. Gather information on regular assessments of the staff of Grupo Supervielle and its

subsidiaries.

v. Determine the mechanism used to search directors, either through an independent

human resources agency or directly.

vi. Approve the hiring of the services of independent human resources agencies.

The Human Resources Committee is made up of three Directors, and the Chief of Human
Resources attends the meetings as Secretary.

C.1.6. Credit House Limit Committee

The Credit House Limit Committee is the highest authority in the credit risk decision-making
structure of GS and companies under its direct and indirect control with respect to approval
of credit limits in excess of their authority.

The Credit House Limit Committee has the following duties:

i. Approve credit policies and limits of the companies under direct and indirect control of

Grupo Supervielle.

ii. Review and establish credit risk limits vis-a-vis customers and counterparts of the
companies under direct and indirect control of GS proposed by the business
platforms of said companies relating to facilities, term, guarantees, special conditions
and environmental risks in connection with the financing of relevant investment
projects.

iii. Ratify the credit authority approved by the Board of Directors for each of the Credit

Committes of the companies under direct and indirect control of Grupo Supervielle.

iv. Oversee the performance of the Credit Committees of the companies under direct and

indirect control of Grupo Supervielle.

It is made up of three Directors of Grupo Supervielle, the CEO of Grupo Supervielle, the
CEO of Banco Supervielle, the Chief Credit Risk Officer of Banco Supervielle, the Head of
Corporate Banking and/or the Head of Finance and/or the Head of Retail Banking of Banco
Supervielle.

C.1.7. Information Disclosure Committee

The Information Disclosure Committee is a body of Grupo Supervielle S.A. whose decisions also
apply to its subsidiaries.

The Information Disclosure Committee's duties include:

ii.

iii.

iv.

Supervise the control and procedures system for information disclosure to ensure that (i)
the information that must be disclosed to the public (either directly or through the
regulatory agencies) is recorded, processed, summarized and disclosed accurately and
timely.
Evaluate the effectiveness of disclosure controls and procedures and determine the need or
convenience of making changes to said controls and procedures regarding the preparation
of ensuing regular reports.
Review all the relevant information that must be submitted to the Argentine Securities
Commission, Bolsas y Mercados Argentinos S.A., Buenos Aires Stock Exchange, Mercado
Abierto Electrónico S.A., US Securities and Exchange Commission, NYSE, Central Bank
of Argentina, Superintendence of Insurance of Argentina and other regulatory agencies in
connection with: (i) mandatory regular reports, (ii) press releases with financial information,
information on significant or material transactions, (iii) the disclosure of relevant facts, (iv)
oral communications and written correspondence to shareholders and investors and (v) any
other relevant information that must be disclosed.
Make proposals to the Board of Directors about the Investors Communication Policy,
Confidentiality and Use of Privileged information and control compliance therewith.

The Information Disclosure Committee is made up of three Directors, the CEO, the CFO, the
CRO, the Chief of Legal Affairs and AML, the Compliance Officer, the Head of Internal Audit,
the Head of Accounting and Investor Relations Officer.

C.1.8. Fintech Investments Committee

The Fintech Investments Committee duties include analyzing and making decisions about the
following:

ii.
iii.

Analysis and approval of the company’s participation in fintech endeavors, and related
products and projects.
Proposal and execution of cost estimates and investments for each endeavor.
Follow up of the evolution of endeavors and projects.

The Fintech Investments Committee is made up of at least three directors.

C.2. Compensation Policy for the Board of Directors and Senior Management

The members of the Board of Directors and of the Statutory Audit Committee receive
compensation for their performance pursuant to the provisions of the Argentine Companies Law
and the rules of the Argentine Securities Commission.

The total compensation to Directors determined or approved by the Shareholders' Meeting held
annually to deal with the items of Section 234 of the Argentine Companies Law, can in no event
exceed the limits established by the CNV and by Section 261 of the Argentine Companies Law.

If the performance by any Director of technical and administrative tasks justifies payment of
compensation in excess of the amounts established by the CNV, said payments may only be
made if they are expressly agreed by the Shareholders’ Meeting, to which end the matter must be
included as an item of the Shareholders’ Meeting Agenda.

The Human Resources Committee is in charge of approving all incentive systems and of
determining fixed compensation policies and performance assessment systems for the Senior
Management and the other members of the staff, excluded the members of the Board of
Directors. The most relevant features of the system’s design are:

Information relating to design and structure of compensation processes

The underlying concept of the structure compensation of Grupo Supervielle and its subsidiaries
is to achieve an adequate balance between obtaining results and managing risks in general. The
design of compensation processes aims at remunerating and recognizing employees’ contribution
in the achievement of individual, unit and company goals in an environment of healthy
competition and merit and performance based payment, within a robust risk control framework.

Description of the measures which take into account current and future risks in compensation processes

The variable component of the compensation of Grupo Supervielle executive officers is
determined taking into account the achievement of individual objectives, those of their business
units and the goals of each company, as well as the achievement of specific goals aimed at
keeping the different risks within the desired thresholds.

Some of the risks taken into account in the incentives plan include:

a) Credit Risk: The objectives of the Credit and Commercial Officers of each company are
to keep credit risk below desirable parameters, such as: (i) delinquency; (ii) % of non-
performing portfolio (determined by the Board of Directors) over total portfolio, and (iii)
loan loss provisions, among other.

b) Strategic Risk: The objectives of the Chief Executive Officer and Head of Administration
and Management Control of each company are to alert about any deviations from the main
performance variables of the bank’s finances vis-a-vis the annual plan, and to take measures
to adjust said deviations.

c) Market, Liquidity, Rate and Securitization Risk: The objectives of the Finance Officer of
each company are to achieve profitability targets by implementing miscellaneous operations
within a framework that ensures that the risks assumed are within those ranges accepted by
the Bank and those permitted by the regulatory body.

Description of the method implemented by Grupo Supervielle and its subsidiaries to calculate performance-based
compensation during the evaluation period.

The Management of each company has a variable remumeration scheme based on the
achievement of individual objectives and those of the respective company. Individual objectives
define a performance score that impacts on the calculation of compensation. Achievement of the
objectives of the respective company is an indicator for increasing or reducing the variable
incentive amount.

Description of the method implemented to adjust compensation taking into account long- term performance
(including the deferral policy of Grupo Supervielle)

Grupo Supervielle has in place a deferred payment bonus with specific objectives, which is paid
at the close of the third year as from its granting.

Description of the different types of variable compensation used by Grupo Supervielle and its subsidiaries and
justification of same.

Variable compensation is only paid in cash, in the understanding that cash payment is the most
direct and convenient way of compensation.

Managements Reporting to the Board of Directors

SOX Management

Given its condition of foreign issuer before the US Securities and Exchange Commission, Grupo
Supervielle created the SOX Management, reporting directly to the CFO of Grupo Supervielle to
ensure alignment with the criteria outlined in the “Internal Control Framework” issued by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO” Report) and
meet the requirements of Sections 302, 404 and 906 of the Sarbanes Oxley Law (SOX). Its main
activities during 2018 were:

a) Definition of the annual scope of the SOX certification process, and generation of

control matrices supporting said processes.

b) Inclusion of the accounting and financial reporting processes of companies acquired by

Grupo Supervielle during this year in the annual certification process.

c) Monitoring of compliance with the execution of controls defined as key for each process.
d) Advice for the continuous incorporation of the best internal control practices for the
main processes of Grupo Supervielle (such as Loans, Accounting, Factoring, Checking
Account, Insurance, etc.)

e) Continuous training of Grupo Supervielle personnel, including the employees of

companies acquired by Grupo Supervielle.

f) Implementation of remediation actions in case of deviations detected by the internal or

external audit.

Additionally, the Head of SOX certification of Grupo Supervielle was included as permanent
guest in the Operational Risks Committee and the Internal Audit Committee.

At the end of 2018 no material control deficiencies had been reported that should be informed to
the Internal Audit Committee and therefore that should be included in the accounting reports
submitted to the SEC.

Compliance Management

During 2018, the Compliance Management, independent of the business and reporting directly to
the Ethics, Compliance and Corporate Governance Committee of the Board of Directors,
continued working on the implementation and supervision of the policies and procedures tending
to the best market practices.

With a view to promoting an integration culture and to monitoring compliance with the Code of
Ethics, the Compliance Management took over the management of the Ethics Line and of the
Investigations area, in charge of managing alleged noncompliance reports made and applying
penalties.

A program to guarantee the best practices in sales quality was launched by the management
together with audit and customer experience and various training courses were carried out in
such connection.

In November 2018, Grupo Supervielle received the “Transparency” Award from the Inter-
American Council of Commerce and Production (IACCP) in alliance with the Buenos Aires
Stock Exchange and Alliance for Integrity. The award was granted during the “Ser y Parecer“
business meeting as part of 75th Anniversary of IACCP, and is an acknowledgment to the efforts
to make a better country through the development of entrepreneurial awareness, equal
opportunities, job generation, construction of a sustainable future and intelligent inclusion of
Argentina in the global context.

The Compliance Management continues with the review and drafting of Policies and Procedures
that guarantee transparency and the proper behavior by its employees, in line with the best
market practices.

D. Risk Governance

As Grupo Supervielle started trading its capital stock in the capital markets, the Board of
Directors defined a new Corporate Governance model to ensure the correct alignment of the
management of the different business units with a control and risks environment according to
international standards. Thus, at Grupo Supervielle, the Chief Risk Officer reports directly to the
Board of Directors of Grupo Supervielle and of Banco Supervielle, so as to guarantee the
separation of the business and risks managements.

The Chief Executive Officers of each of Grupo Supervielle’s companies, report to the CEO of
Grupo Supervielle. The risk governance structure is completed with the board committees and
senior management of the specific areas.

E. Negotiable Obligations Program

Negotiable Obligations – Grupo Supervielle

On September 22, 2010, Grupo Supervielle’s Shareholders’ General Meeting passed the adhesion
to the public offering regime pursuant Law 17,811 and the creation of a Simple Negotiable
Obligations Issuance Global Program, non-convertible into shares, which was passed by the
National Securities Commission on November 11, 2010. Said negotiable obligations may be
short, medium and/or long term, subordinated or not, with or without guarantee, in pesos, in US
dollars or any other currency, for a maximum current amount that shall not exceed, at any time,
1,000 (one thousand million pesos) or its equivalent in any other currency, pursuant to the last
amendment of the Program on May, 7, 2015.

Following its IPO and issuance of the new capital stock, Grupo Supervielle has cancelled the
Negotiable Obligations on their respective due dates. As of December 31, 2018, Grupo
Supervielle S.A. held the following series of negotiable obligations pursuant to their issuance
terms:

Class

Date of
Issuance

Currency

Class XIII

01.31.2014

Ps.

Amount
(in
thousands)
23,100

Rate

Due Date

BADLAR + 6.25%

01.31.2019

As of the date of this report, this issuance had been fully repaid on its maturity date.

F. Analysis of the Balance Sheet and Results

Consolidated Data

CONSOLIDATED BALANCE SHEET (in thousands
of pesos)
Assets
Cash on hand and cash in banks
Securities at fair value through profit or loss
Derivatives
Swaps
Other financial assets
Loans and other financing
Non financial public sector
Other financial entities
Non financial private sector and residents abroad
Other debt securities
Financial assets used as security
Investments in equity instruments
Property, plant and equipment
Investment property
Intangible assets
Assets for deferred income tax
Other non financial assets
Inventories
Non current assets for sale
Total Assets

Liabilities
Deposits
Liabilities at fair value through profit or loss
Derivatives
Other financial liabilities
Financing received from the BCRA and other
Issued negotiable obligations
Liabilities for current income tax
Subordinated negotiable obligations
Provisions
Liabilities for deferred income tax
Other non financial liabilities
Total Liabilities
Shareholders’ Equity
Shareholders’ equity attributable to the owners of the
controlling company
Shareholders’ equity attributable to non controlling interests
Total Liabilities and Shareholders’ Equity

As of December 31, As of December 31,

2018

2017

33,687,553
15,112,115
15,924

1,715,534
78,791,903
32,802
398,551
78,360,550
4,311,095
2,007,217
10,404
1,777,403
412,822
1,961,817
519,231
728,068
61,655
2,800
141,115,541

94,906,014
268,086
94,222
4,268,401
8,033,222
9,307,171
192,999
1,383,817
86,915
172
5,404,345
123,945,364
17,170,177

17,155,555

14,622
141,115,541

11,097,803
11,404,286
26,916
3,349,822
1,614,444
60,444,044
32,607
326,011
60,085,426
359,197
1,301,237
46,653
1,174,057
198,371
190,638
489,175
403,111
102,666

92,202,420

56,408,685
-
-
3,899,874
3,524,267
8,588,970
692,711
685,873
80,163
-
3,801,709
77,682,252
14,520,168

14,369,575

150,593
92,202,420

Consolidated Comprehensive Income Statement (in
thousands of pesos)
Interest income
Interest expense
Net Interest income
Fee income
Fee expense
Income from Insurance Activities
Net fee income
Subtotal
Net income (loss) from measurement of financial
instruments at fair value through profit or loss
Difference in quotation of gold and foreign currency
Financial income and holding gains (losses)
Other operating income
Loan loss
Net operating income
Benefits to personnel
Administration expenses
Depreciations and impairment of assets
Other operating expenses
Operating income (loss)
Income before tax on business activities
Income tax
Net Income (loss) for the year
Net income (loss) for the year attributable to the owners of
the controlling company
Net income (loss) for the year attributable to non controlling
interests
Other comprehensive income (loss)
Other comprehensive income attributable to non controlling
interests
Other comprehensive income attributable to non controlling
interests
Comprehensive Income (loss) for the year
Comprehensive income for the year attributable to the
owners of the controlling ompany
Comprehensive income for the year attributable to non
controlling interests

As of December 31, As of December 31,

2018

2017

25,416,468
(14,954,100)
10,462,368
5,121,990
(1,140,506)
657,554
4,639,038
15,101,406

5,584,803

835,758
6,420,561
1,852,306
(4,220,645)
19,153,628
7,244,626
4,599,163
354,601
3,547,388
3,407,850
3,407,850
814,975
2,592,875

2,567,569

25,306

462,889

462,413

476

3,055,764

3,029,982

25,782

13,909,161
(5,354,954)
8,554,207
3,862,625
(625,652)
479,011
3,715,984
12,270,191

2,194,972

250,758
14,715,921
1,325,483
(1,928,766)
14,112,638
5,355,259
3,365,971
303,133
2,576,497
2,511,778
2,511,778
665,611
1,846,167

1,819,842

26,325

58,668

58,587

1,904,835

1,878,429

26,406

Standalone Data

Standalone Comprehensive Income (loss) (in thousands of pesos)
As of December 31:
Interest income
Interest expense
Net interest income
Net income (loss) from measurement of financial instruments at fair value
through profit or loss
Difference in quotation of gold and foreign currency
Other operating income
Net operating income
Benefits to personnel
Administration expenses
Depreciation and impairment of assets
Other operating expense
Operating income (loss)
Income from subsidiaries, associated and joint businesses
Income before tax on continuing activities
Income tax on continuing activities
Net income (loss) for the year
Other comprehensive income (loss)
Comprehensive income (loss) for the year

2018

2017

129,349
(9,794)
119,555

3,488
(9,288)
(5,800)

703,106

635,339

(24,072)
158,626
957,215
176,879
95,841
14,895
10,264
659,336
2,098,545
2,757,882
190,313
2,567,569
462,413
3,029,982

3,041
95,467
728,047
39,044
86,190
21
32,578
570,214
1,249,991
1,820,205
363
1,819,842
58,587
1,878,429

Consolidated Cash Flow (in thousands of pesos)

Cash flow from operating activities
Cash flow from investment activities
Cash flow from financing activities
Effect of exchange rate change
Total cash flow change

As of December 31, As of December 31,

2018

2017

17,498,333
(4,023,496)
5,681,098
6,395,255
25,551,190

(3,289,957)
(714,614)
13,431,796
2,445,729
11,872,954

Net income (loss) for the year ended December 31, 2018 attributable to the owners of the
controlling company amounted to Pesos 2,567.6 million, up from Pesos 747.7 million as
compared to a net income (loss) of Pesos 1,819.8 million in 2017 as a result of an increase of
Pesos 848.6 million in the income from investments in related entities (Banco Supervielle S.A.
recorded a net profit of Pesos 1,588.7 million as compared to Pesos 715.2 million in 2017),
together with a profit of Ps. 193.6 million in income from investments in government securities.

Income by Business

(in thousands of Pesos)

Income from interests in Banco Supervielle S.A.
Income from interests in Cordial Compañía Financiera S.A.
Income from interests in Tarjeta Automática S.A.
Income from interests in Cordial Microfinanzas S.A.
Income from interests in Supervielle Asset Management S.A.
Income from interests in Espacio Cordial de Servicios S.A.
Income from interests in Supervielle Seguros S.A.
Income from interests in Sofital S.A.F. e I.I.

Income from interests in Micro Lending S.A.U.

Income from interests in InvertirOnline S.A.U. and
InvertirOnline.Com Argentina S.A.U.

31/12/2017
715,183
5,554
10,452
1,355
107,553
105,515
218,780
85,597

31/12/2018

1,588,667
(30,744)
(79,546)

166,438
143,283
306,278
88,570

(164,454)

68,925

Income from interests in FF Fintech

Administration expenses

11,128

2,098,546

1,249,991

The administration expenses of Grupo Supervielle S.A. as of Decemberl 31, 2018 and 2017 were:

Items
(in thousands of pesos)
Banking expenses
Professional fees
Fees of directors and statutory auditors
Taxes, charges and contributions
Payroll expenses
Insurance
Office expenses and services
Office expenses and services
Other expenses
Total

Total as of
12/31/2018

Total as of
12/31/2017

2,147
44,657
12,408
18,219
176,879
2,818
3,044
12,547
272,719

-
309
14,455
25,418
38,075
39,044
2,584
1,873
3,475
125,234

Net income from measurement of financial instruments at fair value through profit or loss

Items
(in thousands of pesos)
Interest from Time Deposits
Income from holding of government bonds
Income from holding of mutual funds
Income from Term Operations- Forwards
Total

12/31/2018

12/31/2017

17,447
618,421
22,042
45,196
703,106

28,319
328,733
269,189
9,099
635,339

Financial income (expense) and holding gains (losses) provided by assets mainly consist of
revaluation of, and interest on, time deposits in Financial Instruments and income not allocated
from temporary investments in liquidity funds.

Financial income (expense) and holding gains (losses) provided by liabilities basically consist of
interest on negotiable obligations.

Other Income and Expense

On December 1, 2008 and on January 16, 2010, the Company and Banco Supervielle entered into
a services contract whereby the Company undertakes to provide financial, strategic and
commercial advisory services for the search and generation of new businesses and expansion of
existing businesses.

In addition, Grupo Supervielle entered into similar agreements with Tarjeta Automática S.A.,
Supervielle Asset Management S.A. and Sofital S.A.F. e I.I., effective as from January 1, 2009,
with Cordial Compañía Financiera S.A. effective as from August 1, 2011 and with Espacio
Cordial de Servicios S.A. effective as from December 26, 2013. As of December 31, 2018 and
2017, the income for such advice amounted to Pesos 65,129 thousand and 53,987 thousand.

In 2013 Grupo Supervielle S.A. entered into agreements with Espacio Cordial de Servicios S.A.
and Cordial Compañía Financiera S.A. to grant licenses to use certain brands on behalf of the
Company with the intent to promote the marketing of goods and services provided by the
aforementioned companies, which were amended on November 1, 2016. These agreements
resulted in an income for the Company of Pesos 4,460 thousand and Pesos 5,713 thousand as of
December 31, 2018 and 2017, respectively.

On May 26, 2014, Grupo Supervielle entered into an agreement for provision of call center
services with CAT Technologies Argentina S.A. for an indefinite term. In addition, on March 31,
2017, it entered into an agreement with Ciudad Microfinanzas S.A. whereby it shall receive a
consideration during a term of 12 months for the use of the Brand License. Based on such

agreements, Grupo Supervielle reported income as of December 31, 2018 and 2017 of Pesos
2,666 thousand and Pesos 3,206 thousand respectively.

Income Tax

As of December 31, 2018 the Company recorded an income tax charge of Pesos 190,313 on its
taxable assets, mainly derived from financial income on the investment portfolio. Income from
interests in other companies is not taken into account for determination of the taxable income (it
is paid at company level) and dividends are exempt.

Regulatory Capital

The table below presents the consolidated minimum capital position of Banco Supervielle.

Consolidated Information

CAPITAL STOCK PAYMENT
Tier 1 (a) Capital
Deductible Items from Tier 1 (b) Capital
Supplementary Shareholders' Equity (Tier 2 Capital)

CAPITAL REQUIREMENT
Requirement for Credit Risk
Requirement for Operational Risk
Requirement for Market Risk

EXCESS CAPITAL
Basic Shareholders' Equity (a) - (b)
RISK WEIGHTED ASSETS

In millions of Pesos

Change

12/31/2018 12/31/2017 Amount

12,199
(871)
1,164
12,492

6,593
1,539
302
8,434
4,058
11,328
103,021

10,066
(374)
913
10,605

5,067
1,049
121
6,237
4,368
9,692
76,113

2,133
(497)
251
1,887

1,526
490
181
2,197
(310)
1,636
26,908

21.2%
133.0%
27.5%
17.8%

30.1%
46.7%
149.4%
35.2%
-7.1%
16.9%
35.4%

Grupo Supervielle's Pro forma consolidated Tier 1 capital ratio amounts to 12.9% as of
December 31, 2018. This ratio includes $927 million which the Company maintains as liquidity
excess which could be applied to growth of its business and its subsidiaries and $1,000 million as
capital contribution to Banco Supervielle in November 2018. Said capitalization was approved by
BCRA in January 2019.

Proposal for Profit Distribution

The profit for fiscal year 2018 amounted to $2,567,568,851. In addition, through the adoption of
the International Financial Reporting Standards as from 1/1/2018, adjustments were made to
income/loss of prior years were made for $(911,607,000) which resulted in net retained earnings
of Pesos 1,655,961,851, which this Board of Directors proposes to distribute as follows:

•

To cash dividends: $303,000,000

To Optional Reserve: $1,352,961,851 for future investments.

If the above project is approved by the Shareholders' Meeting, Grupo Supervielle S.A.'s
Shareholders' Equity would be as follows:

Capital Stock
Additional Paid-in Capital
Statutory Reserve
Optional Reserve
Other Comprehensive Income
Retained Earnings
Total Shareholders’ Equity

31.12.2018
Thousands of Pesos
456,722
8,996,882
91,344
6,708,810
598,797

16,852,555

IV.-REPORT ON THE DEGREE OF COMPLIANCE WITH THE
CORPORATE GOVERNANCE CODE

GRUPO SUPERVIELLE S.A.

Fiscal Year ended 12/31/2018

Compliance

Total(1)

Partial(1)

Non-
compliance
(1)

Inform (2) or Explain (3)

PRINCIPLE I. BRING TRANSPARENCY TO THE RELATIONSHIP BETWEEN THE
ISSUER, THE ECONOMIC GROUP TO WHICH IT BELONGS AND/OR ITS RELATED
PARTIES
Recommendation
Guarantee
I.1:
disclosure
the
by
Management Body of
policies applicable to the
relationship of
the
Issuer with the economic
it
to which
group
belongs and /or
its
related parties.

The Policy of Operations with Related
Parties of Grupo Supervielle defines the
general guidelines for operations among
its related parties, so that they are
conducted in terms of transparency,
equity and impartiality, are duly reported
in the financial statements and executed
following the best corporate governance
practices, in line with the principles and
institutional values, the Corporate
Governance Code and other policies
determined by the Board of Directors.

Recommendation
I.2: Ensure the
existence of
preventive schemes
for conflicts of
interest.

Recomendation I.3:
Prevent the improper use
of privileged information

Companies controlled by Grupo
Supervielle comply with the disclosure
provisions and requirements set forth in
the regulations applicable to their
activity.
The Conflicts of Interest Policy of
Grupo Supervielle S.A., also applicable
to its controlled companies, is intended
for all members of the Board of
Directors, the Statutory Audit
Committee, Senior Management and
other employees under any kind of
employment relationship (the “Persons
Subject to the Policy”) and defines the
reference framework for preventing and
managing conflicts of interests to avoid
or limit their negative impact on the
interests of Grupo Supervielle S.A. and
its subsidiaries.

Conflict of interests arises when the
personal interests of the Persons Subject
to the Policy interfere or collide in any
way with the Company’s interests.

The main risk in case of a conflict of
interests is that they may affect the
decision making process or interfere so
as to prevent an efficient and objective
work. The Persons Subject to the Policy
must act with honesty and ethics and in
furtherance of the Company’s interests,
avoiding situations that represent a real
or potential conflict between their
personal interests and those of the
company.

Section 5. 2.10 of the Corporate
Governance Code establishes general
guidelines on how to deal with conflicts
of interests.

The Policy of Communication with
Investors, Confidentiality and Use of
Privileged information is intended for all
members of the Board, the Statutory

Audit Committee, Senior Management
and other employees under any kind of
employment relationship of Grupo
Supervielle S.A. and its subsidiaries, and
establishes the procedures and guidelines
relative to (i) daily treatment of
confidential information; (ii)
communication with all market players
and (iii) restrictions to persons subject to
the policy for trading securities of the
Company and other issuers in which
connection the persons subject to the
policy may have access to material non
public information.

Section 5.2.9 of the Corporate
Governance Code establishes the general
guidelines on confidentiality and the use
of privileged information.

PRINCIPLE II. ESTABLISH THE BASIS FOR A ROBUST ADMINISTRATION AND
MONITORING OF THE ISSUER

Recommendation II. 1:
Ensure that the
Management Body takes
over the administration
and monitoring of the
Issuer and its strategic
approach.

State whether:
II.1.1 the Management
Body approves:
II.1.1.1 the strategic or
business plan, as well as
annual management and
budget objectives.

II.1.1.2 the policy of
investments (in financial
assets and capital goods)
and financing

II.1.1.3 the corporate
governance policy
(compliance with the
Corporate Governance
Code)

II.1.1.4 the policy of

The Board of Directors is responsible for
the strategic leadership of Grupo
Supervielle.

The Board of Directors is responsible for
the management of Grupo Supervielle’s
businesses and approving the Company's
general policies and strategies.

In particular, the Board is in charge of
approving: (i) the strategic or business
plan as well as the annual management
and budget objectives; (ii) the investment
and financing policy; (iii) the Corporate
Governance Code; (iv) the corporate
social responsibility policy; (v) the risk
control and management policies and any
other related to the regular supervision of
internal information and control systems
and (vi) the development of ongoing
training programs for directors and senior
executives

Section 5.2 of the Corporate Governance
Code establishes the general guidelines for
the Board of Directors.
It is the Board of Directors' responsibility
to approve the investments and financing
policy.
(Section 5.2 (ii) of the Corporate
Governance Code).

The Company has a Corporate
Governance Code approved by the Board
of Directors in line with the Rules of the
Argentine Securities Commission.
The Board is responsible for the creation,
dissemination and updating of the
Corporate Governance Code
(Section 5.2(iii) of the Corporate
Governance Code).
The Human Resources Committee is in

selection, evaluation and
compensation of senior
managers.

II.1.1.5 the policy of
assignment of
responsibilities to senior
managers.

II.1.1.6 the monitoring of
succession plans for
senior managers.

II.1.1.7 the corporate
social responsibility
policy.

II.1.1.8 the risk
management and internal
control policies, and fraud
prevention policies.

charge, among other, of approving and
monitoring the compensation policies and
performance assessment systems of the
Senior Management of Grupo Supervielle
and its subsidiaries.
The assignment of responsibilities to
senior managers is approved and
monitored by the Human Resources
Management, which is in charge of
establishing the guidelines for that policy

The Human Resources Committee is in
charge of analyzing and proposing to the
Board the assessment processes
applicable to the Senior Management and
to key personnel retention.
The Board of Directors of Grupo
Supervielle approves the Corporate Social
Responsibility Strategic Plan.
The Company issues on a yearly basis the
Sustainability Report of Grupo
Supervielle, which includes information
relative to its subsidiaries, in line with the
guidelines and standards established by
the Global Reporting Initiative (GRI).

The report highlights the achievements
and challenges of its permanent
commitment to sustainability, describing
the performance of the miscellaneous
subsidiaries of Grupo Supervielle in the
economic, social and environmental
fields.
The Board of Directors is in charge of
approving the risk management policy,
the internal audit plan and the fraud
prevention regulations.

Pursuant to the provisions of Section 6.4
of its Corporate Governance Code,
Grupo Supervielle has implemented the
following processes: (i) approval of
expenses, contracts and payments to
ensure due authorization at the time an
invoice is received and when it is paid by
check or bank transfer; (ii) monthly
budget control on all expenses incurred in
the month and throughout the year,
reviewing any deviation or unexpected
expenses; (iii) control of financial
transfers, with different levels of signature
and the requirement of two signatures for
transfers to third parties; (iv) periodic
procedures to perform bank
reconciliations, expense allocation and
recording of accounting entries in the
journal, to guarantee that there are no
significant errors in the balance sheet;
(v)quarterly issue of stand-alone and
consolidated statements, subject to review
by the independent auditor.
The tasks related to information and
internal control of each subsidiary are
defined and implemented by each of
them.
The risk management and internal control
and information systems of GS are
supervised by the Audit Committee,
which gathers and deals with the
information submitted by the main
subsidiaries.
As explained below, the Risk
Management Committee and the Audit
Committee (made up of Directors and
other officers of Grupo Supervielle)

specifically deal with the issues that are
within their scope of action.
One of the duties of the Board of
Directors of Grupo Supervielle is to
approve the development of on-going
training programs for directors and senior
executives to update their knowledge and
skills.
Training policies serve to establish general
guidelines to be implemented by
employee training programs, in line with
business objectives and the requirements
of the position.
The training plan is reviewed on an on-
going basis, in order to meet business
needs.
Section 5.2.13 of the Corporate
Governance Code establishes the general
guidelines on this matter.

Grupo Supervielle has a body which
defines in advance the matters that will be
included in the agenda of the Board of
Directors’ Meetings. That body is made
up of four directors of Grupo Supervielle
(including the Chairman and the Secretary
of the Board of Directors) and meets on a
monthly basis.

The Secretary of the Board of Directors
delivers to the Senior Managers the
agenda for the following Board of
Directors.

The presentations related to the items of
the agenda of each Board meeting are
made available to the members of the
Board for consultation with due
anticipation with regard to each meeting.
The Secretary of the Board of Directors is
in charge of distribution of information
and documents required for each Board
of Directors’ meeting, and also assists the
Chairman in the performance of their
duties and oversees the development of
the Board of Directors’ meetings and the
Shareholders’ meetings.
Section 5.2.6 of the Corporate
Governance Code establishes the general
guidelines on this matter.
The matters submitted to the
consideration of the Board of Directors
include an analysis of the risks associated
with the decisions that may be made,
taking into account the level of corporate
risk defined as acceptable by the
Company.

II.1.1.9 the policy of on-
going training for
members of the
Management Body and
senior managers.
Describe the main aspects
of these policies, if any.

II.1.2 If relevant, include
other policies applied by
the Management Body
that have not been
mentioned and describe
the most significant
features.
II.1.3 The Issuer has in
place a policy to ensure
availability of relevant
information for decision
making by the
Management Body and
direct consultation by the
management, so that all
its members (executives,
external and independent)
have equal access to said
information with
sufficient anticipation to
make an adequate analysis
of its content. Explain.

II.1.4 The matters
submitted to the
Management Body’s
consideration include a
risk analysis of the
decisions that may be
made, taking into account
the level of corporate risk
defined as acceptable by
the Issuer. Explain
Recommendation II.2:
Ensure effective Business
Management Control.

State whether:

The Management Body
verifies:

II.2.1 compliance with the
annual budget and
business plan

II.2.2 the performance of
senior managers and
whether they meet the
goals (obtained profits as
compared to expected
profits, financial rating,
quality of the accounting
report, market share, etc.).
Provide a description of
the relevant aspects of the
Issuer’s Management
Control Policy, describing
techniques employed and
monitoring frequency by
the Management Body.

Recommendation II.3:
Inform about the
performance assessment
process of the
Management Body and its
impact.

II.3.1 Each member of
the Management Body
complies with the
Company Bylaws and
with the Rules that govern
the operation of the
Management Body.
Describe the main
guidelines of the Rules.
Indicate the degree of
compliance with the
Bylaws and Rules.

the objectives established,
the business and

The Board of Directors approves and monitors
compliance with the annual budget.
Besides, as holding company, Grupo Supervielle
approves the business plans of its subsidiaries and
prepares the consolidated business plan, taking
the
into account
situation of
the budgets
presented.
The Board of Directors approves the
annual budget prepared by the
Management Control and, through the
Management Committee, controls its
compliance on a monthly basis. The
approved budget contemplates
objectives for Grupo Supervielle, and
describes in detail the specific objectives
of each subsidiary.

The purpose of the monthly follow up
by the Management Committee is to
verify the business performance and the
need of any corrections, so as to ensure
that the objectives set out in the annual
budget are duly met. It includes budget
follow up, portfolio position, a detailed
analysis of revenues, expenses, and
other items for each of Grupo
Supervielle companies and for Grupo
Supervielle on a consolidated basis.

Said analysis is based on a monthly
report with the conclusions of the
period on a consolidated basis for
Grupo Supervielle and a monitor with
key indicators, the general situation and
the particular situation of each
subsidiary.

Grupo Supervielle's Directors comply
with the duties and powers assigned to
them by the Company Bylaws and the
Corporate Governance Code.

Pursuant to the provisions of said Code
the Board of Directors is in charge of the
business management and of approving
the general policies and strategies of the
Company.

In particular, it is in charge of approving:
(i) the strategic or business plan and the
annual management objectives and
budgets, (ii) the investment and financing
policy; (iii) the Corporate Governance
Code, (iv) the corporate social
responsibility code; (v) the risk control
and management policies and any other
policy intended for the regular follow up
of internal control and information
systems and (vi) the development of
ongoing training programs for directors
and senior managers.

Section 5.2 of the Corporate Governance
Code establishes the general guidelines on

II.3.2 The Management
Body sets out its results
taking into account the
goals set at the beginning
of the period, so that
shareholders can assess
the degree of compliance
with these objectives,
both financial and non-
financial. In addition, the
Management Body
presents an analysis of the
degree of compliance with
the policies mentioned in
Recommendation II,
items II.1.1 and II.1.2.

Recommendation II.4:
That the number of
external and independent
members of the
Management Body is
significantly proportional.

II.4.1 The number of
external and independent
executive members of the
Management Body (the
latter defined by the rules
of this Committee) is in
proportion to the Issuer’s
capital structure. Explain.

II.4.2 During the current
year, at the Shareholders’
Meeting it was agreed that
at least 20% of the
members of the
Management Body shall
be independent members.

Recommendation II.5:
Guarantee the
implementation of
standards and procedures
for the selection and
proposal of members of
the Management Body
and senior managers.

II.5.1: The Issuer has in
place an Appointments
Committee

II.5.1.1 made up of at
least three members of
the Management Body,
most of them
independent members

II.5.1.2: chaired by an
independent member of
the Management Body

that matter.

Grupo Supervielle's shareholders assess
the management and performance of the
Board of Directors at the Annual
Shareholders’ Meeting, as set forth by
section 234, paragraphs 1 and 2 of the
Companies Law (No. 19.550), as
amended and supplemented.

In addition, the members of the Board of
Directors regularly carry out self-
assessments of their duties and
performance, and also 360 degree
assessments.

In line with the best corporate
governance practices, Grupo Supervielle
promotes the presence of a sufficient
number of independent directors among
its Board of Directors.

During the year ended on December 31,
2018 four of the eight directors of Grupo
Supervielle were independent, in
compliance with the applicable rules of
the Argentine Securities Commission
during that period.
The composition of the Board of
Directors complies with the indicated
proportion.
The independence of the Directors has
not been questioned and none of them
had to refrain from acting due to conflicts
of interest.

Pursuant to the Companies Law (No.
19.550), it is the duty of the Annual
Shareholders' Meeting to appoint the
members of the Board.
The Human Resources Committee is in
charge of assisting the Board of Directors
in relation to the appointment, assessment
and compensation Senior Officers.
The Human Resources Committee is
made up of four directors, two of which
are independent. The Chief of Human
Resources is the Secretary of the
Committee.

The Human Resources Committee is
chaired by a non-independent Director.

Its adequacy will be evaluated.

II.5.1.3 which has duly
qualified members with
expertise in human capital
policies

II.5.1.4 that meets at least
twice a year.

II.5.1.5 its decisions are
not necessarily binding on
the Shareholders’
Meeting, but are of an
advisory nature as regards
the selection of the
Members of the
Management Body.

II.5.2 If there is an
Appointments
Committee, it

II.5.2.1. verifies the
annual review and
evaluation of its rules and
proposes changes to the
Management Body for
their approval.

II.5.2.2 proposes the
development of criteria
(qualifications, experience,
professional reputation
and ethics, among other)
for the selection of new
members of the
Management Body and
senior managers.

II.5.2.3 identifies the
candidates for the
Management Body to be
proposed by the
Committee to the
Shareholders’ Meeting.

II.5.2.4 proposes
members of the
Management Body who
are to take part in the
different Committees of
the Management Body,
according to their
professional record.

II.5.2.5 recommends that
the Chairman of the
Board should not also
hold the position of
general manager of the
Issuer.

II.5.2.6 ensures that the
resumés of the members
of the Management Body
and senior managers are
available on the Issuers
web page, where their
term of office is clearly
stated (in the case of
members of the

The members of the Human Resources
Committee are qualified and have
expertise in the matter.

As established in its Internal Rules, the
Human Resources Committee meets at
least every two months and/or as
required to perform its duties. It also
meets upon request by any of its
members.

The proposals of the Human Resources
Committee are not binding on the
Shareholders’ Meetings, but are of an
advisory nature.

The Human Resources Committee may
review its Internal Rules and propose
changes to the Board, as may be deemed
necessary.

The Human Resources Committee
submits to the Board the criteria for
selecting members of the members of
Senior Management.

It also supervises the induction process
for new Directors and gives advice
regarding compliance with applicable
regulations on directors' independence.

The Human Resources Committee gives
advice to the Management Body for the
search of new candidates to be appointed
at the Shareholders’ Meeting.

The Board of Directors of Grupo
Supervielle is in charge of determining the
composition of the Board Committees
and their members.

The Chairman of the Board of Directors
is not the Company’s CEO.

The professional records of all the
members of the Board and Senior
Management are included in the
information that the Company publishes
in the website and in the Financial
Information System (Autopista de la
Información Financiera) of the Argentine
Securities Commission.

Management Body).

II.5.2.7 verifies that there
is a succession plan for
the Management Body
and senior managers.

II.5.3 If considered
relevant, include policies
implemented by the
Issuer’s Appointments
Committee not
mentioned above.

Recommendation II.6:
Evaluate the convenience
of having other members
of the Management Body
and/or statutory audit
committee and/or
shareholders’ supervisory
committee perform duties
in several Issuers.

Recommendation II.7:
Ensure Training and
Development of the
members of the
Management Body and
senior managers of the
Issuer.
II.7.1 The Issuer has in
place ongoing Training
Programs related to the
Issuer’s
existing needs
regarding the members of
the Management Body
senior managers,
and
which
include matters
related to their duties and
responsibilities, corporate
risk management, specific
knowledge of the business
regulations,
and
its
corporate
governance
dynamics and corporate
social responsibility, and
in
the
members of the Statutory

case of

the

Directors are elected at the Shareholders’
Meeting.
The Human Resources Committee
analyzes the Human Resources Strategic
Plan and submits it to the Boards of
Directors of its subsidiaries.

It also submits to the Board of Directors
the candidates for CEO, deputy CEO,
and other officers as may be requested by
the Board of Directors, and prepares
succession plans.

In the performance of its duties, the
Director is subject to the incompatibilities
established by the applicable regulations,
the Company Bylaws and the Corporate
Governance Code and the Policy of
Conflicts of Interest.

Directors cannot fill, either directly or
indirectly, positions in competing
companies of Grupo Supervielle or its
subsidiaries, nor render representation or
advisory services to such companies,
except with the prior approval of the
Board of Directors.

The Directors of Grupo Supervielle
cannot hold management positions in its
subsidiaries, except with the prior
approval by the Board of Directors

(Section 5.2.11 of the Corporate
Governance Code)

Grupo Supervielle has in place ongoing
training programs for Directors.

In addition, the Corporate Human
Resources Management designs and
implements the training program for the
Senior Management on a yearly basis,
which includes specific training activities
for Grupo Supervielle’s subsidiaries.

audit
control

Committee,
Audit
accounting
international
and
standards,
internal
and
specific capital markets
regulations.
II.7.2
Issuer
The
encourages, through other
means not mentioned in
II.7.1, members of the
Management Body and
senior managers to take
ongoing
to
enhance their education
the
and add value
Issuer. Indicate how this
is done.
PRINCIPLE III. GUARANTEE AN EFFECTIVE POLICY FOR THE IDENTIFICATION,
MEASUREMENT, MANAGEMENT AND DISCLOSURE OF BUSINESS RISK.

Besides the annual training program,
Grupo Supervielle encourages ongoing
training of the members of the
Management Body and Senior
Management, identifying opportunities
for development within the country and
abroad, for an update of regulatory
aspects and current trends of the industry.

training

Recommendation III:
The Management Body
must have in place a
comprehensive corporate
risk policy and monitor its
correct implementation.
III.1 The Issuer has in
place policies for the
comprehensive
management of corporate
risks (compliance with the
strategic, operational,
financial, accounting, legal
and tax objectives,
regulations and other).

Describe their most
relevant aspects.

III.2 There is a Risk
Management Committee
within the Management
Body or CEO. Indicate if
there are in place
procedure manuals and
detail the main risk factors
that are specific to the
Issuer or its activity and
the mitigation actions
implemented. In the

Grupo Supervielle has a Corporate Risk
Management responsible of defining and
monitoring the general risk policies of its
subsidiaries. The Management has a
cross-cutting vision that encompasses all
the subsidiaries, adapting the risk
management in each of them in
proportion to the nature and size of their
business.
In this line, Banco Supervielle and Cordial
Compañía Financiera have specific units
to deal with risk management matters,
and Cordial Compañía Financiera
delegates to Banco Supervielle certain
tasks as part of the shared services
program. Regarding the other subsidiaries
of Grupo Supervielle, risk management
duties are mainly delegated to Banco
Supervielle or Cordial Compañía
Financiera.
In line with the provisions of
Communication "A" 5203 and
Communication "A" 5398 (Guidelines for
Risk Management in Financial Entities)
and the best practices on the matter, the
Board approves the objectives, guidelines
and risk policies and the global limits of
exposure to risk.

Likewise, the Board approves the
methodologies to identify, measure,
mitigate and monitor different types of
risks. It is informed of the risk exposure
assumed by the Bank and analyses and
approves the annual capital self-
assessment report, as well as the
comprehensive stress test associated with
the business plan.

In line with the best corporate
governance practices and with the
recommendations of the Central Bank of
Argentina in Communications "A" 5201
(Guidelines for Corporate Governance of
Financial Entities) and "A" 5203 and 5398
(Guidelines for Risk Management in
Financial Entities), Grupo Supervielle has
in place the Risk Management
Committee.

absence of such a
Committee, it will be
appropriate to describe
the oversight role played
by the Audit Committee
in reference to risk
management.

Also, explain the degree
of interaction between the
Management Body or its
Committees with the
Issuer’s General
Management on
comprehensive corporate
risks management.

includes

Its duties are (among other): (i) Deal at
level with strategies and
institutional
policies applicable to the management of
credit risk, market risk, interest rate and
liquidity, operational and other risks that
may affect GS and
its subsidiaries
pursuant to the applicable regulations and
best practices, verifying
its proper
implementation and enforcement. Submit
to the Board of Directors, for approval,
the strategy and policy documents on risk
management. Validity of said documents
must be reviewed on a yearly basis; (ii)
define the risk appetite and tolerance
a
levels of Grupo Supervielle
consolidated level and also the global risk
profile for approval by the Board of
Directors; (iii) approve the threshold and
limit structure for risk management as
well as follow up on the corresponding
indicators. This
the Risk
Dashboard and Risk Map consolidated
and used for the control of trading
transactions of the trading portfolios
included in the map, (iv) regularly monitor
the different risks of Grupo Supervielle
and the application of strategies and
policies defined for their management,
(v) evaluate the capital adequacy ratio of
Grupo Supervielle, analyzing the Annual
Capital Self-Assessment Report (IAC)
prior to submitting it to the Board of
Directors for consideration and approval,
(vi) define the policy and methodological
framework for stress tests as part of the
risk management of Grupo Supervielle.
Approve the scenarios for individual and
comprehensive stress tests for different
risks; evaluate and discuss the results of
stress tests and make recommendations
on the contingency plans to be applied,
using the results of the tests to consider
the application or review of limits and
submit all the results to the Board of
(vii) design
Directors
effective
and
systems to keep the Board of Directors
duly informed about all risk management
matters of Grupo Supervielle,
(viii)
approve the methodological framework
and developments of quantitative models
used for risk management and the internal
methodological framework and models
developed for the calculation of the
economic capital of each of those risks;
and (ix) become acquainted with the
information circulars and rules on risks
issued by any regulatory agency applicable
to any of Grupo Supervielle's companies,
as well as the impact of the application of
said information circulars and rules on the
current operations of Grupo Supervielle.

for approval,
information

channels

Grupo Supervielle has in place a General
Risk Management Policy to address the
treatment of specific business risks and
the actions for measurement, monitoring
and mitigation thereof. The description of
the risk management framework is set out
in the notes to the financial statements.

The composition of this Committee
ensures not only fluid interaction between
the members of the Board of Directors
and the Chief Operating Officer (COO)
of Grupo Supervielle and with the Senior

III.3 The Risk
Management Officer or
equivalent position has
independent duties within
the Issuer’s General
Management and is
responsible for the
implementation of risk
management policies.

Please specify.
III.4 Risk management
policies are regularly
updated in accordance
with expert
recommendations and
methodologies.
Indicate which ones
(Enterprise Risk
Management, according
to COSO -Committee of
Sponsoring Organizations
of the Treadway
Commission, ISO 31000,
IRAM 17551, section 404
of the Sarbanes-Oxley
Act, and other).

III.5 The Management
Body reports on the
results of risk
management monitoring
carried out jointly with
the General Management
in the financial statements
and in the Annual Report.
Explain the main items of
these reports.

Management.

The Risk Management is responsible for
the identification, evaluation, monitoring,
control and mitigation of the entity’s
risks. This unit reports directly to the
Board of Directors of Grupo Supervielle,
in line with the corporate governance
guidelines recommended by the Basel
Committee on Banking Supervision.

Risk Management keeps its specific
policies and procedures updated and
submits for approval by the Board of
Directors the strategy documents and risk
management policies of the subsidiaries
applying proportionality criteria according
to the nature and size of their business.
The methodologies used are those
established by the current regulations of
the Central Bank of Argentina and the
best practices recommended by the Basel
Committee on Banking Supervision.
This documentation is reviewed on an
annual basis to ensure its validity.

The Annual Report and the notes to the
financial statements provide detailed
information on the results, the
methodologies used in the management
of risks by the Company and their
exposure.
Likewise, Banco Supervielle publishes
quarterly on a consolidated basis the
Market Discipline document on its
website
http://www.supervielle.com.ar/Institucio
nal/informacion-financiera.
Said document contains qualitative and
quantitative information on risk
management, including data on
composition and capital adequacy,
exposure to credit, liquidity, market,
interest rate, securitization and
operational risks and information related
to compensation and risk-aligned
objectives.

PRINCIPLE IV. SAFEGUARD THE INTEGRITY OF THE FINANCIAL INFORMATION
THROUGH INDEPENDENT AUDITS

Recommendation IV:
Guarantee the
independence and
transparency of the duties
entrusted to the Audit
Commitee and to the
Independent Auditor

IV.1 The Management
Body, on electing the
members of the Audit
Committee taking into
account that most of
them should be
independent, assesses the
convenience of it being
chaired by an independent
member.

IV.2 There is an internal
auditor that reports to the
Audit Committee or to
the Chairman of the
Management Body and is

The Audit Committee is made up of
three Directors. During the fiscal year
ended December 31, 2018, such directors
were independent, pursuant to the rules
of the Argentine Securities Commission.

The Chairman of the Audit Committee is
an Independent Director.

The tasks of the Internal Audit are carried
out by a Corporate Internal Audit
Management reporting to the Audit
Committee.
Its main duty is to establish, for Grupo

responsible for the
evaluation of the internal
control system.

IV.3 The members of the
Audit Committee conduct
an annual evaluation of
suitability,
the
and
independence
the
performance
of
Auditors,
Independent
appointed
the
Shareholders Meeting.

IV.4 The Issuer has a
policy related to the
turnover of the members
of the Statutory Audit
Committee and / or the
Independent Auditor; and
in the case of independent
auditors, whether
turnover includes the
audit firm or only the
individuals.
PRINCIPLE V. RESPECT SHAREHOLDER RIGHTS

Recommendation V.1:
Ensure that shareholders
have access to
information about the
Issuer.

V.1.1 The Management
Body promotes regular
briefings with
shareholders, together
with the presentation of
the interim financial
statements. Explain, and
indicate the number and
frequency of meetings
held during the year.

V.1.2 The Issuer has in
place information
channels for investors and
a specialized area to deal
with their queries. In

Supervielle's companies, the general
guidelines to be used for audit plans, for
consistency of applicable work
methodologies, to follow up on audit
plans of the companies and evaluate the
follow up on the most critical remarks
that are still non-conforming.
The Audit Committee conducts an annual
assessment of the Internal Audit plans
and performance through the analysis of
its methodology and annual work plan,
meetings and reports.
Besides, it assesses the internal control of
the company and its subsidiaries and the
operation of the administrative-
accounting system through the analysis of
the reports prepared by Internal and
External Audits, the Statutory Audit
Committee and interviews and statements
of officers of subsidiaries.
The Audit Committee is in charge of an
annual assessment of the management,
operation, work plans, quality,
independence and sufficiency of the
Inernal Audit.
The Audit Committee approves the
Annual Plan of Internal Audit.
The Audit Committee conducts an annual
assessment of the independence, work
plans and performance of the
Independent Auditors.
Said assessment is conducted through the
analysis of the different services, reports,
interviews, correspondence and the
documents requested by the Committee.
In compliance with the applicable
provisions in each fiscal year the Audit
Committee submits to the Argentine
Securities commission a report on the
Board of Directors’ proposals for
appointment of Independent Auditors.
Grupo Supervielle complies with the
regulations on External Audit established
by the CNV Rules.
Besides, the Audit Committee evaluates
on an annual basis the suitability,
independence and performance of the
independent auditor and the members of
the audit team.

Grupo Supervielle has appointed an
Investor Relations Officer to act as liaison
between shareholders and investors and
Grupo Supervielle and to comply with the
appicable regulatory requirements of the
CNV.
The Head of Investor Relations organizes
regular conference calls with investors to
submit the quarterly reports of results.

Grupo Supervielle publishes its financial
statements in the Argentine Securities
Commission, Bolsas y Mercados
Argentinos S.A., Mercado Abierto
Electrónico S.A. and the US Securities
and Exchange Commission.

addition, it has a website
that can be accessed by
shareholders and other
investors, and facilitates
an access channel so that
they can establish contact
with each other.

Provide details.

Recommendation V.2:
Promote the active
participation of all
shareholders.

V.2.1 The Management
Body adopts measures to
encourage the
participation of all
shareholders in the
General Shareholders
Meetings. Explain and
distinguish between the
actions required by law
and those voluntarily
offered by the Issuer to its
shareholders.

V.2.2 The Rules for
Shareholders' Meeting
ensure that all
information is available in
advance to shareholders
for decision making.
Describe the main
guidelines.

V.2.3 The methods
implemented by the
Issuer allow minority
shareholders to propose
items for discussion at the
Shareholders Meeting in
accordance with the
provisions of applicable
laws. Explain the results.

V.2.4 The Issuer has
policies to encourage the
participation of major
shareholders, such as
institutional investors.
Specify.

V.2.5 At the Shareholders
Meetings where

The Company has a web site
(http.//www.gruposupervielle.com.ar)
that may be accessed by shareholders and
the general public.

Grupo Supervielle meets the applicable
legal provisions to promote attendance of
all shareholders to the Annual
Shareholders’ Meetings. To that end,
notices of Shareholders Meetings are
published in the Official Gazzette of
Argentina, in another newspaper with
wide circulation, Bolsas y Mercados
Argentinos S.A., Mercado Electrónico
Abierto S.A. and the US Securities and
Exchange Commission.
Grupo Supervielle has not taken other
actions than those required by current
regulations, to the extent that the
shareholders’ right to attend Shareholders’
Meetings is assured, and provided they
meet the statutory and by-law
requirements to attend the meeting and
are not barred from attending,
participating and exercising their voting
and other rights.

Grupo Supervielle considers that the
availability of information for decision-
making at shareholders meetings is duly
regulated by the Argentine Companies
Law (No. 19.550), the Capital Markets
Law (No. 26.831) and the Rules of the
Argentine Securities Commission.

Grupo Supervielle is highly respectful of
the rights of all its shareholders. For that
reason, general meetings are convened
and held in strict compliance with the
procedures established by the Argentine
Companies Law (No. 19.550), the Capital
Markets Law (No. 26.831) and the rules
of the Argentine Securities Commission,
and of those exchanges or markets where
its shares are listed as well as the
provisions contained in the Company
Bylaws.
The procedure is regulated by this
statutory and bylaw framework, so that
minority shareholders can exercise their
right to include items in the meetings’
agenda.
Likewise, Grupo Supervielle's
shareholders’ meetings may be supervised
by oversight bodies to verify that
meetings have been duly called and held.
The calls are made to all shareholders
without distinction and under the
procedures established in the applicable
rules.

Acceptance of the provisions of the
Company’s Corporate Governance Code
is a pre-requisite to the acceptance of the

candidates are proposed
for the Management
Body, the following
information is provided
prior to the vote: (i) the
stance of each of the
candidates regarding the
adoption or not of a
Corporate Governance
Code; and (ii) the grounds
for that stance.

Recommendation V.3:
Guarantee the principle of
equality between number
of shares and votes.

Recommendation V.4:
Establish methods
to
protect all shareholders
against takeovers.
Answer whether:
The Issuer adheres to the
mandatory
tender offer
scheme. If not, explain if
there are in place alternate
schemes in the Bylaws,
such as
tag along or
others.

Recommendation V.5:
Increase the percentage of
outstanding shares on
capital stock.

Answer whether: the
Issuer’s dispersion of
shares is of at least 20%
for its ordinary shares. If
not, if the Issuer has a
policy to increase market
dispersion.

Indicate the Issuer’s
percentage of the capital
stock and how it changed
over the last three years.

position of Director.

Grupo Supervielle highlights the
importance of the active participation of
minority shareholders at the meetings,
and it is committed to ensure
enforcement of their rights.
In that sense, there are no limitations to
their participation or voting rights at the
meetings.

Grupo Supervielle adheres to the
mandatory tender offer scheme
established by Law No. 26.831 and the
rules of the Argentine Securities
Commission, as supplemented and
amended.

At present the capital stock of Grupo
Supervielle S.A. amounts to $456,722,322,
made up of: (i) 126,738,188 registered non
endorsable Class A shares of common
stock of $1par value each entitled to 5
votes per share (27.75% of the capital
stock) and (ii) 329,984,134 registered non
endorsable Class B shares of common
stock of $1 par value each entitled to 1
vote per share (72.25% of the capital
stock).
Under applicable legal and bylaw
provisions, each class or shares grants its
holders the same rights. Class B shares are
authorized for listing on Bolsas y
Mercados Argentinos S.A., Mercado
Abierto Electrónico S.A. and the New
York Stock Exchange (through ADSs).
During the last three years the capital
stock of Grupo Supervielle has changed
as follows:
As of 12/31/2015 it amounted to
$248,970,528 made up of (i) 126,738,188
registered non endorsable Class A shares
of common stock of $1 par value each
and entitled to 5 votes per share (50,9%
of its capital stock); (ii) 119,032,340
registered non endorsable Class A shares
of common stock of $1 par value each
and entitled to 1 vote per share (47.8% of
its capital stock); and (iii) 3,200,000
preferred shares of 1$ par value each not
entitled to vote (1.2% of the capital
stock).
As of 12/31/2016 it amounted to
$363,777,615 made up of (i) 126,738,188
registered non endorsable Class A shares
of common stock of $1 par value each
and entitled to 5 votes per share (34.84%
of its capital stock); (ii) 237,039,427
registered non endorsable Class A shares
of common stock of $1 par value each
and entitled to 1 vote per share (65.16%
of its capital stock).

As of 12/31/2017 it amounted to
$456,722,322 made up of (i) 126,738,188
registered non endorsable Class A shares
of common stock of $1 par value each
and entitled to 5 votes per share (27.75%
of its capital stock); (ii) 329,984,134
registered non endorsable Class B shares
of common stock of $1 par value each
and entitled to 1 vote per share (72.25%
of its capital stock). This structure has not
changed during the year under analyisis.

Section 5.1.3. of the Code of Corporate
Governance seths forth that dividends be
declared and paid annually provided that
there are available legal funds, as
determined by the Annual Shareholders’
Meeting.
The Board of Directors shall make a
recommendation to our shareholders
regarding the amount of dividends to be
distributed. This recommendation will
depend on a number of factors, including
without limitation, our operating results,
cash flows, financial condition, capital
levels, legal, contract and regulatory
requirements and investment and
acquisition opportunities. As a general
rule, the Board of Directors will
recommend an efficient use of capital, i.e.
the Board of Directors shall recommend
reinvesting profits if there are organic or
inorganic investment opportunities or
distributing dividends in case of capital
excess.
The Board of Directors of Grupo
Supervielle may also decide to pay interim
dividends, in which case each of the
Directors and the members of the
Statutory Audit committee shall have
unlimited and joint liability for payment
of said dividends in case liquid realized
profits at the end of the fiscal year in
which said early dividends were paid are
not enough to cover said payment.
In accordance with the CNV Rules, cash
dividends shall be paid to shareholders
within 30 calendar days after approval of
said distribution by the Shareholders’
Meeting.
In the case of share dividends, or in the
case of share and cash dividends, shares
and cash must be made available to
shareholders within three months of the
date of notice of authorization of the
public offering of the shares to be
distributed.
Shareholders will be entitled to receive
dividends and other distributions, if any.
Dividends are distributed pro rata
according to the number of shares of each
shareholder. The right of the shareholders
to claim payment of dividends lapses
three years after the date on which they
were made available to shareholders, and
the amount not claimed within that
timeframe is considered as extraordinary
profit for the Issuer.
Under the Companies Law No. 19.550 of
Argentina, the CNV Rules, as

Recommendation V.6:
Ensure that the company
has in place a transparent
dividend policy.

V.6.1 The Issuer has a
dividend distribution
policy established in the
Company Bylaws and
approved by the
Shareholders' Meeting, in
which the conditions for
distributing cash or share
dividends are established.
If it is the same, indicate
criteria, frequency and
conditions that must be
met for the payment of
dividends.

V.6.2 The Issuer has

documented processes for
the preparation of the
proposal for allocation of
its retained earnings to
statutory or optional
reserves, carryforward to
the ensuing fiscal year and
/ or payment of
dividends.

supplemented and amended, and the
Bylaws of Grupo Supervielle, upon the
closing of the financial year 5% of the
profit for the year plus (minus)
adjustments from prior years must be
allocated to the statutory reserve until
reaching 20% of the adjusted capital
stock.
Pursuant to the Bylaws of Grupo
Supervielle, liquid realized profits at the
end of the fiscal year are allocated as
follows: (i) 5% to the statutory reserve
fund until reaching 20% of the subscribed
for capital stock, (ii) to payment of
compensation of Directors and members
of the Statutory Audit Committee, (iii) to
payment of dividends on preferred shares,
giving priority to unpaid cumulative
dividends and (iv) the balance, in whole
or in part, to an additional share of
preferred shares and dividends on
common shares or to optional reserve
funds or to a new account or as may be
determined by the Shareholders’ Meeting.
PRINCIPLE VI. MAINTAIN A DIRECT AND RESPONSIBLE RELATIONSHIP
WITH THE COMMUNITY

Explain such processes
and state which minutes
of shareholders' meetings
contains the approval or
not of such distribution of
(cash or share) dividends
if not provided for in the
corporate by-laws.

Recommendation VI:
Disclose to the
community those matters
related to the Issuer and
provide a communication
channel with the
company.

VI.1 The Issuer has an
updated website that may
be freely accessed and
that provides relevant
company information
(Company Bylaws,
economic group,
composition of the
Management Body,
financial statements,
annual report, etc.), and
also receives users’
general queries.

VI.2 The Issuer publishes
a Social and
Environmental
Responsibility Report on
an annual basis, which is
monitored by an
independent Auditor. If
applicable, indicate the
scope of legal or
geographic coverage of
the report and where it
may be found. Specify
what standards or actions
have been adopted to
carry out its corporate
social responsibility policy
(Global Reporting
Initiative and / or the
United Nations Global
Compact, ISO 26,000,
SA8000, Millennium
Development Goals, SGE
21-Ethical and Socially
Responsible Management
System – Foretica; AA
1000 Accountability
Standards, Equator

Grupo Supervielle deals with the queries
of shareholders through the area of the
Investor Relations Officer, who acts as
liaison with investors and shareholders.
In addition, it has a free access website
with relevant information about the
Company (www.supervielle.com.ar).

Grupo Supervielle includes in the
Sustainability Report an annual balance
sheet of its activities in the area of
corporate social responsibility.
The Sustainability Report encompasses
the following general contents: (i) Strategy
and analysis; (ii) Organization profile; (iii)
Material aspects and coverage; (iv)
Stakeholder participation; (v)Governance;
(vi) Ethics and integrity. In turn, the
report includes specific contents focused
on: (i) Economics; (ii) Environment; (iii)
Human rights; (iv) Company; (v) Product
liability and (vi) Human resources.

The Sustainability Report is available on
the website.

Principles, among others).
PRINCIPLE VII. FAIR AND RESPONSIBLE COMPENSATION

Recommendation VII:
Establish clear
compensation policies for
the members of the
Management Body and
senior managers, with
special focus on statutory
or other limitations based
on the existence or non
existence of profits.

VII.1: The Isssuer has a
Compensation
Committee:

VII.1.1 made up of at
least three members of
the Management Body,
most of them
independent.

VII.1.2: chaired by an
independent member of
the Management Body.

VII.1.3 has members who
are qualified and have
expertise in human
resources policies

VII.1.4 that meets at least
twice a year

VII.1.5 its decisions are
not necessarily binding on
the Shareholders’ Meeting
or the Shareholders'
Supervisory Committee,
but are of an advisory
nature as regards the
compensation of the
Members of the
Management Body.

VII.2 If there is a
Compensation
Committee, it:

VII.2.1 ensures that there
is a clear relationship
between the performance
of key personnel and their
fixed and variable
compensation, taking into
account the risks assumed
and management thereof.

VII.2.2 supervises that
the variable portion of the
compensation of
members of the
Management Body and
senior managers is linked
to the medium and / or
long-term performance of
the Issuer.

VII.2.3 reviews the
competitive position of
the Issuer's policies and

Grupo Supervielle has in place a Human
Resources Committee.

The Committee is made up of four
directors. Two directors are independent.
The Chief of Human Resources is the
Secretary of the Committee.

The Human Resources Committee is
chaired by a non-independent Director.
Its adequacy will be evaluated.

The members of the Human Resources
Committee are qualified and have
expertise in the matter.

As established in its Internal Rules, the
Human Resources Committee meets at
least every two months and/or as required
to comply with its duties.
It also meets upon request by any of its
members
The proposals of the Human Resources
Committee are not binding on the
Shareholders’ Meetings, but are of an
advisory nature.

The Human Resources Committee
establishes the compensation policy for
the subsidiaries of Grupo Supervielle.
The Human Resources Committee
recommends to the Board of Directors
the policies, practices and incentives for
the management of risks, capital and
liquidity.

The approves and monitors incentive
systems, including those aligned with the
risk appetite set by the Board, and variable
compensation (bonus, variable
compensation, profit sharing).

The Human Resources Committee makes
proposals to the Board of Directors on
the Human Resources Policies for the

different Group companies.
Accordingly, each Policy establishes
guidelines for the review of the
competitive position in terms of
compensation and benefits.

The Human Resources Policy establishes
guidelines for the retention, promotion,
termination and suspension of key
personnel.

The Human Resources Committee
reports on the guidelines established in
relation to retirement plans.

The Chairman of the Human Resources
Committee regularly informs the Board of
Directors about its actions and proposes
the measures it considers appropriate
within the scope of its duties.

In Grupo Supervielle's opinion, it is
considered a best practice for the
Chairman of the Human Resources
Committee to be present at the
Shareholders' Meetings.

practices regarding
compensation and
benefits of similar
companies, and
recommends changes, if
necessary.

VII.2.4 defines and
communicates the policy
of retention, promotion,
termination and
suspension of key
personnel,

VII.2.5 reports on the
guidelines for determining
retirement plans for the
members of the
Management Body and
senior managers of the
Issuer,

VII.2.6 regularly reports
to the Management Body
and to the Shareholders
Meeting on the actions
taken and the topics
discussed at its meetings,

VII.2.7 guarantees the
presence of the Chairman
of the Compensation
Committee at the
Shareholders' Meeting
that approves
compensation to the
Management Body, to
explain the Issuer's policy
regarding compensation
of the members of the
Management Body and
senior managers.

VII.3 If considered
relevant, mention the
policies applied by the
Issuer’s Compensation
Committee that have not
been mentioned above

VII.4 If there is no
Compensation
Committee, explain how
the duties described in
VII. 2 are carried out
within the Management
Body.
PRINCIPLE VIII. PROMOTE BUSINESS ETHICS

Recommendation
VIII:Guarantee ethical
behavior in the Issuer.

VIII.1 The Issuer has a
Code of Business
Conduct. Indicate main
guidelines and if it is
known by the general
public. This Code is
signed by at least the
members of the
Management Body and
senior managers. Indicate
whether its application is
encouraged among
suppliers and customers.

Grupo Supervielle has in place a Code of
Ethics whose provisions apply to all
employees at Grupo Supervielle and its
subsidiaries, including their dependants,
those persons under forward contracts,
or performing their duties during a trial
period, members of the Board of
Directors, independent advisors, suppliers
and any third party who, by reason of its
relationship with Grupo Supervielle, may
affect the reputation of the Company or
of any of its entities and companies.
The Code of Ethics must be signed by all
employees, and it is published on the
Company’s intranet.
Failure to comply with the Code of Ethics

VIII.2 The Issuer has in
place methods to receive
reports of any unlawful or
unethical conduct, in
person or electronically,
ensuring that the
information transmitted
has high standards of
confidentiality and
integrity, such as the
registration and
preservation of
information. Indicate if
complaints are received
and evaluated by the
Issuer’s staff or by
external and independent
professionals for greater
protection of those
reporting the breach.

VIII.3 The Issuer has in
place policies, procedures
and systems for the
management and
resolution of complaints
referred to in VIII.2.
Describe the most
relevant aspects thereof
and indicate the degree of
involvement of the Audit
Committee in these
resolutions, particularly in
the case of complaints
about internal control
issues for accounting
report and about the
conduct of members of
the Management Body
and senior managers.

may lead to the application of disciplinary
and legal sanctions and determine the
termination of employment or contract of
infringing employees. The guidelines
established by the Code of Ethics take
precedence over all orders coming from
senior officers and are part of the set of
rules and regulations in force.

Grupo Supervielle has an external
outsourced Ethics Line available to
employees, suppliers and customers for
complaints through three alternative
channels: a free telephone line, free e-mail
or a Webpage. Anonymous reports on
irregularities or improper behavior may be
filed through any of these channels.

The Ethics Line of Grupo
Supervielle/Banco Supervielle is a
communication channel that may be used
to report irregularities or breaches of an
internal rule, particularly the Code of
Ethics and the Integrity Program for the
Prevention of Corrupt Acts. The Ethics
line guarantees confidentiality of the
information reported, anonymity of
reporting parties and the prohibition of
retaliation and the right to defense of the
reported party.

During the year 2018, a total of 154
reports were made in connection with
Grupo Supervielle and 98 in connection
with Banco Supervielle. The 3 main
reasons of the reports were: rudeness,
customer complaints and irregularities.

Complaints are received by an external
supplier and referred to the Compliance
Management.

All complaints are analyzed and
investigated jointly by the areas involved
in the report. The Compliance
Management issues a monthly report
addressed to the President, CEOs, Chief
of Human Resources, Audit and Legal
Affairs. If so required, the case is referred
to the Discipline Committee for the
application of penalties.

PRINCIPLE IX: BROADEN THE SCOPE OF THE CODE

Recommendation IX:
Encourage the inclusion
of provisions that make
for good governance
practices in the Company
Bylaws.

Considering that the relevant provisions
of the Corporate Governance Code are
already included in the Company Bylaws,
and that all the applicable legal provisions
provide a very complete regulatory
framework, it is not deemed necessary to
make other statutory provisions in this
regard for the time being.

(1) Indicate with an X if applicable.
(2) In case of full compliance, report how the Issuer complies with the principles and recommendations of

the Corporate Governance Code.
(3) In case of partial compliance or non-compliance, give the reason why and indicate what actions the
Issuer’s Management Body intends to take to include any pending provisions, if any, in the ensuing or
subsequent fiscal years.

Then, the documents were analysed and after a brief exchange of opinions the Board
unanimously resolved to approve the Annual Report, the Balance Sheet, the Income Statement,
the Statement of Changes in Shareholders’ Equity and the Statement of Cash Flows, and
supplemental information, notes and the Informal Summary for the fiscal year ended on
December 31, 2018.

In addition, the Report of the Statutory Audit Committee and the Auditors’ Report to the
Financial Statements were submitted to the Board of Directors.

2. Audit Committee

Upon motion made by the Chairman, the content of the minutes of meeting of the Audit
Committee held on [ ] was submitted to the Board of Directors.

3. Next Meeting of the Board of Directors

The Chairman informed that the next meeting of the Board of Directors would be convened as
and when set forth by the law.

There being no further business to transact, the meeting was adjourned at [hour].