Grupo Supervielle S A : Sustainability Reports 2023

We encourage the dreams of our customers, providing solutions for their growth

Index

Letter from the Chairman

Scenarios in which We Operate

• → International Scenario

• → Local Scenario

• → Economic Data

• → Economic Activity

• → Prices

• → Public Finance

• → External Sector

• → Monetary Policy

• → Financial System

• → Insurance Market

• → Mutual Fund Industry

• → Outlook for 2024

Integrated Value Creation

• → Preparation of the Report

• → Sustainability Strategy

• → Stakeholder Engagement

• → Materiality Analysis

• → How We Create Value

Grupo Supervielle Today

• → Long-Term Value Creation

• → Supervielle Ecosystem

• → Share Structure

• → Board of Directors

• → Committees

• → Good Governance Practices

• → Risk Governance

• → Ethics and Conduct

GRI and SASB Content Index

PWC Verification Report Financial Statements

Compliance with the Corporate Governance Code

Intellectual and Industrial Capital

Customer-Centric

Our Digital and Cultural Transformation: Towards a New Operating Model

Closeness and Continuous Improvement of Our Service Channels

Information Security

Grupo Supervielle Business Segments

Procurement of Goods and ServicesBrand Positioning

Human Capital

We Support Our TeamsTalent Attraction and RetentionTrainingDevelopment and Performance Management

Diversity and Equal Opportunities

Support to Victims of Gender-Based Violence

Benefits

Occupational Health and Safety

Remuneration

Freedom of AssociationInternal Communi-cations and Events

Letter from the Chairman

Dear readers,

I am pleased to present to you the Annual Integrated Report of Grupo Supervielle for the year ended December 31, 2023, with the highlights of our manage-ment for the creation of financial and non-financial value.

During the previous year, we established a clear path towards profitability, with operational integration and efficiency measures intended to execute the strategic pillars of our businesses and build bank of the future. It is with great satisfaction that I inform today that in 2023 we achieved a successful performance as shown by our results: a 17% ROE in real terms, a robust 21% Tier 1 capital ratio and a 1.2% non-performing loan portfolio ratio, reaching historical minimum levels, in a challenging macroeconomic and political context, fea-tured by high inflation and credit penetration that continued to fall to levels below 7% in relation to GDP.

Regarding the transformation process, throughout the period we enhanced the customer-centric and prod-uct-oriented operating model. We continued to optimize digital, virtual and automated channels, while transforming our branch network to offer higher value transactions and drive cross-selling efforts. This improved our NPS and positioned the Virtual Hub as a highly efficient transactional channel. As a result,we closed the year with 137 branches, as compared to 183 at the beginning of the process in 2020. We also recorded a 17% increase in the number of customers per branch over the previous year.

In our Individuals segment we continued to improve competitive NPS and to drive sustained digital adop-tion, greater loyalty and cross-selling. In particular, the number of digital retail customers had a year-on-year increase of ten points, reaching 62%. Additionally, 64% of personal loans were originated digitally, up from 34% a year ago. Digital sales of insurance prod-ucts offered through digital and non-digital channels also increased, reaching 26% as compared to 10% in January 2023.

Worthy of mention is the strong adoption of our digital wallet: from January to December 2023 the number of transfers grew from 3 million to 7 million, QR code pay-ments increased from 25 thousand to 250 thousand and payments for public utilities increased by 84%. Along these lines, we increased 9 times the number of individual customers who, during the year, invested in, and withdrew funds from, the FCI Premier Renta Corto Plazo through the Inversión Rápida product, which also resulted in a 7 times increase in managed assets in nominal terms.

Furthermore, we achieved material results in the stra-tegic priorities of the Business segment, improving NPS in all segments for the second year in a row. In the second half of the year we recovered market share and closed the year with a slight increase, new cus-tomers and greater loyalty among SMEs and business customers. Throughout the year we completed the digital offer of products for working capital financing; in December, 93% of Factoring transactions, 72% of Unsecured Loans and 52% of Overdrafts were carried out digitally by SME customers. At the same time, we continued to expand our share of demand deposits and foreign trade transactions.

In the Insurance segment, we improved the digital experience of our customers, with a wider array of products which are simpler to contract and claims self-management. Under the operation of Supervielle Seguros and Supervielle Productores Asesores de Seguros, during the current year we doubled sales and began to scale the product offering through the Virtual Hub. We also grew more than 50% in the placement of policies for commercial customers, increased the stock brokered by Supervielle Bróker by 37% and 88% of total expired policies were renewed.

Our mutual fund management company, Supervielle Asset Management (SAM), closed the year with aver-age funds of $404 billion and a market share of 1.72%.

Finally, IOL Invertironline achieved significant growth in terms of commissions, reaching the milestone of one million accounts and nearly 720,000 App downloads. Throughout the year, more than 14 million transactions were carried out, 916 thousand accounts were opened, with 483,580 active customers and more than $653 billion of managed assets at the end of December.

During the reported period, we invested $2,446,787,265 in training, totaling 35,746 training hours and 16 average hours per person. 449 employees from all the regions where we operate participated in more than one volun-teering action, 61% of whom were women.

To maximize opportunities and generate shared value with our value chain, in 2023 we developed supplier risk management with an integrative and holistic approach under our Third Party Risk Management Policy.

On behalf of the Board of Directors, I would like to close by expressing my gratitude to our teams, suppli-ers, shareholders and customers for their support and trust in the quality of our products and the sustainable performance of our organization. I invite you to browse the pages that follow and learn more about the results achieved as of December 31, 2023.

Throughout the reporting period, we continued to develop goals and objectives that are part of our sus-tainability strategy.

In environmental terms, we reduced total electric power consumption by 12% as compared to 2022, increased the use of renewable sources to 2,122 MWh and offset 100% of our 2022 carbon footprint. Within the framework of our social responsibility actions, we trained 8,249 persons in the responsible and sustain-able use of financial instruments. We continued to develop various projects related to education, children, senior citizens, institutional strengthening and initia-tives that promote culture and the arts.

In order to strengthen the sustainable management of the credit portfolio, we continued implementing the Environmental and Social Risk Policy that classifies the activities of our customers based on social, envi-ronmental or climate change risks. Looking forward, we are confident in our ability to drive the strong expansion of our loan portfolio once the economy sta-bilizes and resumes growth. We also continued to issue SVS (Social, Green and Sustainable) Bonds and launched an Environmental, Social and Governance (ESG) Mutual Fund through our subsidiary SAM, which promotes the financing of companies with sus-tainable development projects.

Julio Patricio Supervielle Chairman

In 2023 we achieved a successful performance as shown by our results: a 17% ROE in real terms, a robust 21% Tier 1 capital ratio and a 1.2% non-performing loan portfolio ratio, reaching historical minimum levels.

International Scenario

Local Scenario

The reported year was featured by a slowdown in the global economy, which grew 3.0% in 2023 as com-pared to 3.5% in 2022, according to International Monetary Fund (IMF) estimates.

As from the tightening of monetary policy by central banks, inflation continued to decline throughout the year. As a result, the U.S. Federal Reserve raised the Federal Funds rate by an additional 1% to a range of 5.25 - 5.50%, in addition to the increase of more than 4% in 2022. Similar trends were followed by the Bank of England and the European Central Bank, resulting in a strengthening of their currencies.

In turn, commodities partially reversed the price rises caused by Russia's invasion of Ukraine. However, they are still above historical levels. The price of oil, mean-while, remains at high levels due to the greater resilience of the global economy faced with rising rates and the conflict in the Middle East between Israel and the Hamas terrorist group.

During the reported period, the local environment was strongly impacted by the November 19 run-off, when Javier Milei was elected President of Argentina.

The Milei Administration's first initiatives focused on the liberalization of the country's economy, a strategy that was formalized through Emergency Decree (DNU) No. 70/2023, which repeals and amends more than 300 laws. It establishes the deregulation of trade, ser-vices and industry throughout the Argentine territory and renders ineffective the restrictions on the supply of goods and services that distort market prices, among its main guidelines.

The DNU was supplemented by the Omnibus Bill sub-mitted to Congress by the Executive with the aim of declaring a public emergency in different areas and pro-posing structural reforms with an impact on the tax system, the social security system and the private sector, among other. However, given the lack of agreement in the preliminary negotiations with the other political forces, at the close of this report the government decided to withdraw the bill from legislative consideration.

The new administration has presently announced mea-sures to reduce the tax deficit and achieve financial balance by the end of 2024 and promoted a change in relative prices, with which it seeks to correct Argentine economic distortions. Along these lines, it updated the exchange rate, which lagged far behind the evolution of prices. An adjustment in subsidies to the rates of public utilities (water, electricity, gas and transport) was also announced, which had suffered a great delay during the previous administration, as they rose well below inflation.

At the end of the year, the agreement with the IMF was almost deactivated. Initially, the targets were modified because the drought prevented the accumulation of reserves. Even so, the targets were not fulfilled and the IMF did not make the disbursement of approximately $3.3 billion provided for by the fifth and sixth reviews of the agreement that had taken place in August.

The new administration reached a new agreement with an adjustment in the targets for 2024, mainly in terms of the tax area from a primary deficit of 0.9% of GDP to a primary surplus of 2%. The reserve accumulation target

was raised to $10 billion, from $8.2 billion. Such a differ-ence is not observed in practice, since the IMF considers that the US$2,700 million that the BCRA obtained in the last days of December was in fact an accumulation of reserves. With these changes, the IMF could disburse, in addition to the $3.3 billion not disbursed in November 2023, an advance of $1.4 billion of the disbursements scheduled for March and June.

Public Finance

The primary deficit represented approximately 2.7% of GDP, failing to meet the target agreed with the IMF of 1.9%, while the financial deficit stood at 5.9%. The fiscal deterioration as compared to 2022 is due to the loss of 4.7% in revenues, mainly as a result of the sig-nificant drop in income from withholdings as a result of the drought. At the same time, public expenditure fell by 4.9%, mainly due to a reduction in real terms in social benefits and subsidies.

to $350, remaining at that level until November 15, when the crawling peg scheme was restored. After the inauguration of President Javier Milei and the swear-ing-in of the new monetary authorities, the exchange rate was devalued by 118% and a crawling peg scheme was established with a 2% depreciation per month.

Monetary PolicyEconomic Data

External Sector

Economic Activity

The Argentine economy recorded a cumulative year-on-year decline of 1.6 %1, largely due to the drought that mainly affected the agricultural sector (-20.4%). Due to import restrictions, a smaller decline than expected was recorded, increasing trade debt to importers. According to the latest data available at the end of October, more than 33,000 jobs were created while total wages showed a cumulative drop in 2023 of 4.9% as compared to the pre-vious year in real terms (122% nominal year-on-year).

The result of the trade balance accumulated a deficit of US$6,926 million as compared to a surplus of US$6,923 million in 2022. The result is largely explained by the 24.5% drop in exports as a result of the drought, while imports were not affected to the same extent.

Regarding the gross international reserve level, a loss of US$22,995 million was recorded and the year closed with a stock of US$21,603 million.

Until the new authorities of the BCRA took office, the monetary policy interest rate (interest rate on liquidity bills or LELIQs) increased from 75% at the close of 2022 to 133% as of December 18, 2023, an increase of 58%. The new government stopped tendering LELIQs, while the rate of reverse repos, which are 1-day bills, became the benchmark for monetary policy, reaching a nominal annual 100% at the close. In addition, the National Treasury began to issue fixed-rate bills, promoting the transfer of debt from the BCRA. In this way, the elimina-tion of LELIQs does not result in an increase in the monetary base, but rather in a reduction in the BCRA's balance sheet, both in terms of liabilities and assets.

Prices

The headline inflation index as measured by the Consumer Price Index (CPI) reflected an increase of 211.4%, the highest since 1990. On the other hand, core inflation, which excludes the effect of regulated and seasonal goods prices, stood at 229.4%.

The dynamics of the exchange rate until the Primary, Open, Simultaneous and Mandatory Elections (PASO) was governed by a crawling peg scheme, with adjust-ments by the Central Bank of Argentina (BCRA) at a rate similar to that of inflation. After the PASO, the exchange rate was devalued by 21.8%, from $287

1 Data published by the National Institute of Statistics and Censuses

(INDEC), which at the close of this report covered up to December 2023.

Financial System

Insurance Market

During the reported year, the regulations established by the BCRA remained in force, such as the establishment of a minimum interest rate to be paid by financial insti-tutions for time deposits, the Productive Investment Financing Line (LIP), which continued to be the main tool used to channel credit to MSMEs under more favorable conditions, as well as the setting of maxi-mum interest rates for credit card financing.

At the end of the year, the deposits and loans to GDP ratio was 17.0% and 6.9%, according to the latest data available as of September 2023, as compared to 18.3% and 7.3%, respectively, in December 2022. Total pri-vate sector deposits in the financial system increased by 171.1% (-13.0% in real terms) while total loans to the private sector increased by 148.8% year-on-year (-20.1% in real terms).

Interest rates recorded a strong increase throughout the year: BADLAR reached 130% by early December to then close the year at 109.76%, exceeding the 2022 result by 40%. As aforesaid, at year end, the monetary policy rate reached 100% (25 points higher than the previous year). Guaranteed minimum rates for the payment of time deposits were established at 110% as of December 31 when, as of December 15, they were at 133% (due to a BCRA adjustment) and one year earlier, at 75%.

The financial system's liquidity and solvency remained high. The liquidity indicator (including not only cash available, but also BCRA instruments and National Treasury bonds eligible to pay reserve requirements) for the financial system reached 88.6% as of December 31, 2023. This implies an increase of 14.2 points as com-pared to 2022. In addition, the sector's regulatory capital payment ratio totaled 32.4% of risk-weighted assets.

There are 192 insurance companies in Argentina (as of September 30, 2023), 18 of which are engaged in Retirement Insurance, 36 exclusively in Life Insurance (including Group, Individual, Pension, Health, Personal Accidents and Funeral), 12 specialized in Occupational Risks and 5 in Public Passenger Transportation. The remaining 121 companies are engaged in other property and casualty insurance operations or "mixed" opera-tions covering both property and casualty insurance. Finally, the local market is also made up of 16 reinsur-ance companies, 11 of which are domestic and 5 are branches of foreign companies.

The industry's activity is measured in terms of premi-ums written net of cancellations. During fiscal year 2022, the latest information available as of the date of this report, the total insurance market recorded more than $1,803 billion, which represents a nominal growth of 65% over the previous year which, in turn, rep-resents a growth in real terms of 0.83%.

Nevertheless, the sector reached 3.01% of the Gross Domestic Product (GDP) in 2022, which evidences the importance of the local insurance and reinsurance sector for the Argentine economy with a -0.01% change over the previous year.

Mutual Fund Industry

By type, 80% of policies are Property Insurance and 20% are Casualty Insurance. The first segment is led by Motor Vehicles, which is close to $689.8 billion, rep-resenting 47.4% of property and casualty insurance policies. Then, Occupational Risks reached about $385 billion becoming the second in line, representing 27% of the segment.

Group Life and Credit Life lines reached together about $132.9 billion, representing 51% of the total Personal Insurance policies.

Finally, to complete the big picture of the insurance market, the brokerage segment is made up of 46,207 insurance and reinsurance brokers who have to meet a series of requirements to manage the insurance con-tracted through them.

In December 2023, the monthly average of managed funds recorded a rise of 15% in real terms as compared to the close of 2022.

Considering market managers, while banking groups grew by 11% year-on-year, independent managers grew by 23%. The higher growth of the second group ensures a 37% market share in the sector as a whole, with 63% remaining in the hands of banking groups.

The sector is comprised of the following products, by order of importance and by volume of managed funds: → Money Market funds for immediate liquidity: they represent 50% of the total managed funds with an increase in real terms in the year of 9%. This product allows investors to limit their loss of monetary bal-ance holdings which generates inflation. Management of this product is led by banking groups with an 85% market share.

→ Medium-term local fixed and mixed income funds in pesos: they account for 27% of the sector. They include products offering liquidity in 48 hs (T+2), with asset portfolios in line with the evolution of inflation, the official exchange rate or other combina-tions on a discretional basis. Managed funds present an annual increase in real terms of 36% and inde-pendent asset managers lead the market with 59% of the total.

→ Short-term local fixed income funds in pesos, which offer liquidity in 24 hours (T+1) and with the same return as the Badlar rate: they represent 5% of the sector as a whole and their annual change fell by 28% in real terms due to the interest of investors for other inflation or dollar linked products in December. → Funds with a lower market share: SMEs,

Infrastructure and ESG (8%); Foreign Fixed and Mixed Income Funds (5%); Local Fixed and Mixed Income Funds in US dollars (3%) and Variable Income and Total Return (4%).

The major customers with the highest share in the total of the aggregate insurance industry are companies which represent 56% and grew by 11% over 2022, basically with investments in Money Market funds.

Likewise, ACDIs (Agents with Proprietory Portfolio) grew by 80%, reaching a 17% market share. These customers record a higher annual growth in real terms and act on behalf of their own customers, estimated in 12.5 million.

Finally, individual customers recorded an annual growth in real terms of 26%, concentrating 7% of managed funds.