Company Presentation September 14

Transcription

1 Estrictamente Company Presentation September 14 1

2 ILC s Highlights ILC placed the largest IPO in Chile (US$ 468 million) 2012 June 1 st 2013 ILC sold 51% of Desarrollos Educacionales June 18 th 2013 ILC acquired 67% of the shares of Corp Group Vida Chile S.A. September 13 th 2013 November 18 th 2013 May 12 th 2014 August 19 th 2014 ILC subscribed a Memorandum of Understanding with the controlling shareholder of Banco Internacional. Habitat initiated operations in Peru, after being awarded the 1 st new affiliates auction for 2 years Vida Cámara was awarded in the D&S insurance auction in Peru Vida Cámara was awarded in the D&S insurance auction in Chile ILC Page 2

3 Ownership and stock price Ownership structure (Jun-14) Internationals 17.0% Mutual Funds & Others 4.2% Market Cap (MMUS$) Stock price (Ch$) Net Income 6M14 (US$* Th) September 8 th ,329 7,781 70,968 Stockbrokers 11.8% CChC 67.0% P/E 8.3 P/BV 1.62 Dividend Pay Out 60% 80% *Exchange rate of Ch$ as of June 30 th, ,0% Evolution of the stock price 30,0% 20,0% 10.2% 10,0% 0,0% 10,0% 20,0% 30,0% jul 12 ago 12 sep 12 oct 12 nov 12 dic 12 ene 13 feb 13 mar 13 abr 13 may 13 jun 13 ILC jul 13 ago 13 sep 13 oct 13 IPSA nov 13 dic 13 ene 14 feb 14 mar 14 abr 14 may 14 jun 14 jul 14 ago % 17.8% performance difference as of September 8 th, 2014 ILC Page 3

4 Estrictamente Company overview June, 2014 Revenues Net Income Ownership Retirement Sector Pension funds administration (AFP) Life Insurance Company (Annuities) US$125.4 mm US$ 94.2 mm 67.5% US$458.3 mm US$-1.04 mm 67.0% Healthcare and life Insurance Sector Health insurance institution (ISAPRE) Hospital healthcare services Outpatient healthcare services Supplemental health insurance US$303.8 mm US$ mm US$ 37.9 mm US$ 15.8 mm US$ 0.7 mm US$-2.5 mm 99.9% 89.9% 99.9% Other Business Network of nine private schools and one subsidized private school IT and outsourcing services US$3.12 mm US$0.34 mm 49.0%(*) 32.9% Exchange rate: CLP per 1USD (*) Since June 18 th, 2013 ILC Page 4 4

5 Revenues come from Estrictamente $ Pension Fund Retirement Insurance Healthcare 10% 1.27% Commission fee Voluntary savings Mandatory Health Insurance 7% Additional health contribution Gross Salary Taxes: Range 0% - 40% Supplemental health insurance Voluntary Health Insurance Net Salary Annuity Retirement Savings Habitat average: Ch$ 667,675 (US$ 1,208) Chile average: Ch$ 615,048 (US$ 1,113) Programmed Withdrawal Source: Superintendencia AFP, as of Jun-14; exchange rate $ ILC Page 5 5

6 Estrictamente Our Business 6

7 Estrictamente Habitat Income Statement (Th.US$*) Revenues Cost of sales June 14 June 13 Var. % 125, , % Gross Profit 125, , % SG&A (47,741) (46,710) 2,2% Operating Income 77,527 68, % Gain (loss) of the encaje 32,656 6, % EBITDAE** 85,611 76, % Net Income 94,161 67, % Created in 1981 under the new provisional system The only AFP under the same controller through all its history 67.5% owned by ILC One of the most efficient AFP in terms of cost control and the second cheapest on fees **EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat s encaje. * Exchange rate of Ch$ as of June 30th,2014. ILC Page 7 7

8 Estrictamente Habitat: Key considerations Ample growth opportunities Cuprum 21.0% Modelo 1.5% Habitat 26.1% Salary base increase Voluntary savings products Planvital 2.7% Incorporation of independent workers to the system Capture of transfers from competitors Capital 20.9% Provida 27.9% Total AUM = US$170.1 bn Source: Superintendencia de Pensiones, as of June 30th, 2014 Contributors distribution (as of June 2014) Contribution rate % 58.9% 56.8% 46.4% 75.7% 48.0% 1,705,563 1,178, , , , ,679 PROVIDA HABITAT CAPITAL MODELO CUPRUM PLANVITAL Products offered Mandatory individual capitalization account Contributions = 10% of gross salary (capped at ~US$3,000 per month) Voluntary pension contributions Tax exempt, up to a certain amount Voluntary savings account Allows withdrawals at any time Programmed withdrawals Pension payment option in which retirees maintain their account with the AFP Source: Superintedencia de Pensiones 1 Contributors / affiliates ILC Page 8 8

9 Habitat: Key considerations Estrictamente Operating expenses & % fee income (Jun-14) Net Income (Ch$ mm) Fee Income (US$ million) Based on actual figures Adjusted to Habitat s 1.27% fee rate 90,000 CAGR ex-encaje ( 09-13) 7.5% 80,000 70,000 14,649 27,089 19,504 (1,846) 13,061 60,000 50,000 40,000 3,824 18,050 30,000 20,000 10,000 48,615 55,974 63,500 61,515 64,824 33,619 33, Jun 13 Jun 14 Current mandatory fee (August 2014) 40 Planvital Modelo Habitat Capital Cuprum Provida % 0.77% 1.27% 1.44% 1.48% 1.54% 0 00% 30% 60% 90% 120% 150% Expenses % Fee Income Fee income (US$ million) & Expenses % (Jun -14) Habitat Cuprum Provida Modelo Planvital Capital % 35.6% 47.8% 37.5% 67.3% 64.6% ILC Page 9 9

10 AFP Industry as of June 2014 Estrictamente 9.9% Annual growth of Gross Salary (nominal terms) 7.8% 7.6% 11.7% Source: Superintendencia de Pensiones, as of June, % 8.8% 8.1% Habitat Capital Cuprum Modelo Planvital Provida Sistema Ch$ 700, , , , , , ,000 Contributor average salary CAGR: 8.2% 667, , , , , , , , , , , , , ,013 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Jun 14 Industria Habitat Evolution of Contributors Evolution of Habitat AUM (US$ Million) 2,000,000 1,600,000 1,200, % 1.6% 0.3% 30,793 CAGR: 8.4% 36,305 37,281 41,805 42,653 44, , % 25.5% 400, % Habitat Capital Cuprum Modelo Planvital Provida Jun 14 jun 13 jun 14 var anual % Source: Superintendencia de Pensiones, as of June, 2014 ILC Page 10 10

11 AFP Industry as of June 2014 Estrictamente Contributors Evolution: Salary < CL$500 Th. N of Contributors 60,000 Contributors Evolution: Salary > CL$1,400 Th. N of Contributors 6,000 30,000 0 Habitat Capital Cuprum Modelo Planvital 4,000 2,000 Habitat Capital Cuprum Modelo Planvital Provida Provida 30,000 0 Contributors Market Share Evolution: Salary < CL$500 Th. 40.1% 39.8% 39.5% 39.1% 38.8% Contributors Market Share Evolution: Salary > CL$1,400 Th. 34.2% 33.6% 32.9% 32.7% 32.4% 22.5% 22.1% 21.7% 21.3% 21.0% 19.1% 18.8% 18.6% 18.4% 18.2% 10.8% 11.9% 12.9% 14.0% 14.9% 4.4% 4.4% 4.4% 4.4% 4.3% 3.2% 3.0% 2.9% 2.8% 2.8% Habitat Capital Cuprum Modelo Planvital Provida 25.2% 25.4% 25.5% 25.4% 25.4% 21.3% 21.3% 21.2% 21.1% 20.9% 15.3% 15.1% 15.2% 15.2% 15.2% 3.3% 3.9% 4.5% 5.0% 5.4% 0.7% 0.7% 0.7% 0.7% 0.7% Habitat Capital Cuprum Modelo Planvital Provida jun 13 jul 13 ago 13 sep 13 oct 13 nov 13 dic 13 ene 14 feb 14 mar 14 abr 14 may 14 jun 14 jun 13 jul 13 ago 13 sep 13 oct 13 nov 13 dic 13 ene 14 feb 14 mar 14 abr 14 may 14 jun 14 jun 13 jul 13 ago 13 sep 13 oct 13 nov 13 dic 13 ene 14 feb 14 mar 14 abr 14 may 14 jun 14 jun 13 jul 13 ago 13 sep 13 oct 13 nov 13 dic 13 ene 14 feb 14 mar 14 abr 14 may 14 jun 14 ILC Page 11 11

12 Estrictamente Habitat: Peru Ample growth opportunities December 20 th 2012, Habitat was awarded in the first auction in Peru All the new entrant into the formal sector contribute into Habitat for two years 600,000 new beneficiaries expected in two years As of June 1 st 2013, Habitat started operations in Peru. As of June 2014, Habitat Market Share is 4.3% in terms of affiliates Profuturo 26.2% Prima 31.6% Habitat 0.2% Total AUM = US$38.2 bn Integra 40.9% Source: SBS as of June 2014 Contributors distribution (as of April 2014) Mandatory mix fee rate after the first auction (%) Over the contribution Over the AUM 2,043,980 1,846,122 Profuturo 1.49% 1.20% 1,466,526 Integra 1.55% 1.20% Prima 1.51% 1.90% Habitat 0.47% 1.25% 198,481 PROMEDIO 1.26% 1.39% Integra Profuturo Prima Habitat Source: SBS as of April 2014 Source: Superintendencia de Banca, Seguros y AFP del Perú ILC Page 12 12

13 Estrictamente Potential synergies in the health business Average monthly contribution per contributor: USD $137.9 Average monthly contribution per beneficiary: USD $18.7 Medical Bill 10% of the gross salary is the average contribution % of the Net Salary Monthly primus Co-payment between the company and the employee % covered by the person % covered by: 7% of the gross salary is the mandatory contribution % covered by: or USD 15.2** Full coverage of 80 diseases in an established network * * The GES plan cost U.F since July 1 st, 2013 ILC Page 13 13

14 Estrictamente Consalud Income Statement (Th. US$*) Revenues Cost of sales Gross Margin Jun ,786 (247,876) 55,910 Jun ,331 (203,896) 38,436 Var. % 12.8% 7.4% 45.5% Created in 1984 under the new provisional health system (Isapre) SG&A Operating Income EBITDA** Net Income (39,892) 17,269 (36,807) 3,712 15,841 5,235 **EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost. *Exchange rate of Ch$ as of June 30th, % 365.2% 22,070 7, % 202.6% 99.9% owned by ILC The price of GES rose to UF due to the inclusion of 11 new diseases, since July 1 st, 2013 ILC Page 14 14

15 Estrictamente Consalud: Key considerations Growing demand prospects Leading private health insurance provider and strong market position Masvida 15.6% Others 5.2% Consalud 21.1% Strong brand recognition Continuous innovation and incorporation of new technologies First choice provider for people moving from the public to the private health insurance system Colmena 16.2% Banmédica 20.9% Total Contributors = 1,718,053 Source: Superintendencia de Salud, as of May 2014 Others includes Vida Tres and Ferrosalud. Cruz Blanca 21.0% Products offered Source: Fonasa, as of December, % Isapre: 3.12 mm 18.2% Fonasa D: 3.0 mm 13.6% Fonasa C: 2.2 mm 29.8% Fonasa B: 4.9 mm 19.7% Fonasa A: 3.2 mm Medical plans Open network plans Preferred provider plans Closed network plans Complementary product offerings Additional coverage for catastrophic diseases Dental plans Pharmacy plans ILC Page 15 15

16 Consalud: Key considerations Estrictamente Number of Contributors (as of May 2014) Average monthly contribution 1 in US$ (June 2014 LTM) 400, , , , , , , , , , , ,000 50,000 75, Consalud Cruz Blanca Banmédica Colmena Masvida Vida Tres 0 Consalud Masvida Banmedica Cruz Blanca Colmena Vida Tres Number of Beneficiaries (as of May 2014) Loss ratio 2 (as of June 2014 LTM) 800, % 700, , , , , , , , , % 88.0% 86.0% 85.0% 87.9% 88.2% 88.3% 89.8% 300, , , ,475 Consalud Banmédica Cruz Blanca Colmena Masvida Vida Tres 84.0% 82.0% 80.0% 78.0% 82.7% Consalud Cruz Blanca Banmedica Vida Tres Masvida Colmena Source: Superintedencia de Salud and ILC 1 Operating revenues divided by the number of contributors. Exchange rate of Ch$ as of June 30 th,2014; 2 Operating expenses divided by operating revenues ILC Page 16 16

17 Consalud: Operating data Estrictamente Dec-12 Dec-13 Mandatory contributions (Ch$ million) 208, ,374 Voluntary contributions (Ch$ million) 66,793 80,426 Jun-14 LTM 239,262 91,539 Others (Ch$ million) TOTAL (Ch$ million) 275, , ,364 Beneficiaries N Beneficiaries Revenues / Beneficiary (Ch$) 700, , , , , , , , , , ,000 $ 410,053 $ 462,241 $ 494, , , ,669 Dec 12 Dec 13 Jun 14 LTM 550, , , , , ,000 Source: Superintedencia de Salud, FEFI Consalud as of March ILC Page 17 17

18 Estrictamente Red Salud Income Statement (Th. US$*) Revenues Cost of sales Gross Margin Jun ,569 (144,993) 38,575 Jun ,533 (130,759) 34,775 Var. % 10.9% 10.9% 10.9% One of the main private healthcare providers, reaching close to 18.6% of the private beds in Chile SG&A Operating Income EBITDA** Net Income (27,322) 11,253 (23,343) 11, % (1.6%) 20,223 21,629 (6.5%) 718 5,073 (85.8%) 89.9% owned by ILC National coverage through a network of 16 hospitals and 33 medical centers **EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost. *Exchange rate of Ch$552,72 as of June 30th,2014. ILC Page 18 18

19 Estrictamente Red Salud: Overview Chilean private hospitals by number of beds (2013) Davila 540 Bicentario * Alemana 400 Santa María 335 Indisa 321 Las Condes 256 Tabancura UC Lira UC San Carlos Avansalud Las Lilas Iquique ILC market share (in terms of private hospital beds): 18,6% Red Salud hospitals Others Source: ILC, annual reports of the companies as filed with the SVS, except Clinica Alemana, where the information has been derived from its website; *Represents the original number of beds for this project, still not approve by the board. ILC Page 19 19

20 Red Salud: Operating data Estrictamente Jun-13 Admissions 25,542 Emergency room visits 61,271 Patient days 61,698 Jun-14 25,645 68,617 63,668 Includes Bicentenario, Avansalud, Tabancura and Iquique hospitals June - 14 Average ocupancy rate Average lenght of stay (days) Tabancura Avansalud 71.0% 64.0% Bicentenario 71.9% Iquique 54.5% Evolution of revenues Red Salud Evolution of EBITDA LTM Clínica Bicentenario Ch$ million 250, , , ,000 97, , ,088 50, ,442 74,735 77,307 Dec 12 Dec 13 Jun 14 LTM Hospital revenues Outpatient revenues ILC Page 20 20

21 Red Salud: Operating data Estrictamente Evolution of Revenues, Net Income and EBITDA of our private hospitals and outpatient centers Income Statement (Jun-14) Megasalud Avansalud Tabancura Bicentenario Iquique Ch$ millions Revenues 44,926 16,566 16,083 19,724 2,918 Cost of sales (35,760) (12,582) (12,400) (16,538) (1,995) Gross Profit 9,166 3,984 3,683 3, SG&A (5,761) (2,149) (2,776) (2,958) (761) Operating Income 3,405 1, Net Income 2, (1,452) 42 EBITDA (*) 4,929 3,075 1,611 1, EBITDA Mg. 11.0% 18.6% 10.0% 6.6% 11.5% (*) EBITDA calculated as Operating Income minus depreciation and amortization Income Statement (Jun-13) Megasalud Avansalud Tabancura Bicentenario Iquique Ch$ millions Revenues 40,042 15,158 15,321 17,065 3,180 Cost of sales (31,150) (11,820) (11,732) (14,866) (2,201) Gross Profit 8,891 3,337 3,589 2, SG&A (5,384) (1,771) (2,408) (2,018) (745) Operating Income 3,507 1,566 1, Net Income 2, (918) 164 EBITDA (*) 4,983 2,681 1,818 1, EBITDA Mg. 12.4% 17.7% 11.9% 6.8% 10.5% (*) EBITDA calculated as Operating Income minus depreciation and amortization ILC Page 21 21

22 Estrictamente Vida Cámara Income Statement (Th. US$*) Revenues from insurance activities Revenues from financial result Cost of Sales Gross Margin SG&A Operating Income Net Income *Exchange rate of Ch$552,72 as of June 30 tth Jun 14 34,631 3,333 Jun 13 22,267 3,836 Var. % 55.5% (13.1%) (34,106) 3,858 (20,358) 5, % (32.8%) (7,348) (3,490) (5,275) % (844%) (2,525) 277 (1012%) Created in 2009 due to the acquisition of 99.9% of RBS (Chile) Seguros de Vida S.A. 99.9% owned by ILC On January 2012 launch the complementary health insurance business, adding more than 9,000 beneficiaries per month As of September 23 rd 2013, Vida Cámara was awarded, with two of seven fractions, the D&S insurance auction in Peru. As of May 12 th 2014, Vida Cámara was awarded, with two of nine fractions of the male pool, in the D&S auction in Chile. ILC Page 22 22

23 Estrictamente Vida Cámara: Key considerations New projects Since July 2012, Vida Cámara stopped supplying the D&S insurance Complementary health insurance Life and catastrophic insurance Entrance in Peru 36% premium market share in the D&S business (July 2010-June 2012) Evolution of beneficiaries for the complementary health insurance In average, more than 9,000 beneficiaries per month ILC Page 23 23

24 Estrictamente Corp Group Vida Chile Income Statement (Th. US$*) Non-Insurance Activity Profit Revenues from insurance activities Revenues from financial result Cost of Sales Gross Margin SG&A Operating Income Insurance Activity Profit Net Income Jun 14 (**) (4,485) Jun 13 (4,547) Var. % 1.4% 277, , , ,139 (9.8%) 18.0% (444,174) 14,167 (450,734) 10,194 (1.5%) 39.0% (14,145) 22 (18,829) (8,635) (24.9%) 100.3% 485 (2,788) 117.4% (1,048) (4,203) 301% As of November 18 th, 2013 ILC acquired 67% of the shares of Corp Group Vida Chile S.A. The price paid for the shares and social rights was CLP $87,250 million (US$ mm) Key Considerations (as of June 2014) *Exchange rate of Ch$552,72 as of June 30 tst 2014.(**) ILC only consolidate the 1Q14 period. 15.5% Market share on annuities 7.9% Market share on life insurance direct premium 16.4% Market share on AuM More than 300,000 policy holders in CorpVida ILC Page 24 24

25 Estrictamente Corp Group Vida Chile Income Statement evolution of Corp Group Vida Chile subsidiaries Corpseguros S.A. Income Statement US$ Th. (*) 1H14 1H13 Var % US$ Th. (*) 2Q14 2Q13 Var % Premium Income 35,881 49, % 17,174 22, % Annuity 34,439 47, % 16,455 22, % Loans 1,442 1, % % Result of Investments 81,725 77, % 45,330 38, % Reserves and Claims (103,025) (118,600) -13.1% (48,323) (56,751) -14.9% Gross Profit 14,581 8, % 14,180 5, % Administrative expenses (3,429) (3,031) 13.1% (1,660) (1,331) 24.7% Operating Income 11,152 5, % 12,520 3, % Non Operating income 1,225 (757) 261.9% 493 (1,093) 145.1% Profit before tax 12,378 4, % 13,013 2, % Income tax expenses (1,305) 3, % (1,186) 3, % Profit to Corpseguros S.A. (**) 11,072 8, % 11,827 5, % (*) Exchange rate of $ as of June 30th (**) ILC only consolidate the 2014 d Corpvida S.A. US$ Th. (*) US$ Th. (*) Income Statement 1H14 1H13 Var % 2Q14 2Q13 Var % Premium Income 253, , % 123, , % Annuity 205, , % 98, , % Individual Life Insurance 40,869 31, % 20,070 17, % Corporate 6,212 20, % 3,261 10, % Loan 1,602 1, % % Result of Investments 88,156 65, % 52,620 17, % Reserves and Claims (340,552) (326,176) 4.4% (165,099) (164,835) 0.2% Gross Profit 1,290 (1,870) 169.0% 10,605 (16,821) 163.0% Administrative expenses (12,370) (10,888) 13.6% (6,716) (5,499) 22.1% Operating Income (11,080) (12,757) 15.1% 3,889 (22,320) 117.4% Non Operating income (1,254) % (2,554) 2, % Profit before tax (12,334) (11,904) -3.5% 1,334 (19,654) 106.8% Income tax expenses 1, % 956 (63) % Profit to Corpvida S.A. (**) (10,588) (11,237) 6.1% 2,290 (19,717) 111.6% (*) Exchange rate of $ as of June 30th (**) ILC only consolidate the 2014 period. ILC Page 25 25

26 Estrictamente Financial Summary 26

27 Estrictamente Balance Sheet US$* Thousands Balance Jun 14 Dec 13 Income Statement Jun 14 Jun 13 Total current assets Total non current assets Total insurance assets 380, ,412 1,340,302 1,287,934 8,241,978 7,840,589 Non insurance activity operating income Non insurance activity non operating income 102,917 14,980 85,820 9,525 TOTAL ASSETS 9,963,111 9,540,934 Insurance activity operating income (3,468) 469 Total current liabilities 277, ,504 Insurance activity non operating income Total non current liabilities Total insurance liabilities 745,084 7,635, ,176 7,217,411 Profit attributable to noncontrolling interest and income tax expense (43,947) (41,781) TOTAL EQUITY 1,283,158 1,298,843 NET INCOME 70,968 54,080 TOTAL EQUITY & LIABILITIES 9,963,111 9,540,934 Non insurance activity EBITDAE** 130, ,338 (**)EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat s encaje. US$* Thousand Jun 14 US$* Thousand Jun 14 COVENANT < 1.0 X Short term debt 152,005 Cash & cash equivalent 334,210 Net Fin. Debt / Total Equity 0.38 x Long term debt 670,105 Total financial debt 822,111 Total equity 1,283,158 (*)Exchange rate of Ch$ as of June 30 th, 2014 ILC Page 27 27

28 Estrictamente Financial Data (as of June 2014) Financial Debt Credit Risk Financial Debt (USD million) ILC Habitat Vida Cámara Corp Group Vida Chile S.A. C. Machalí Consalud Red Salud TOTAL Short Term Bonds Bank loans Leasing Long Term Bonds Bank loans Leasing Total Feller Rate: AA+ Humphreys: AA+ Local credit rating Cash Flow from our main subsidiaries (Jun-14) EBITDA (non insurance business) (Jun-14) US$ Th. Jun 14 Distributable Net Income (US$ Th) Dividend Policy** % Ownership % Div. to ILC (US$ Th.) 140, ,000 7,087 2,819 20,223 Habitat 57,876 90% 67.5% 35,149 Red Salud % 89.9% 646 Consalud* 15, % 99.9% 15,766 Vida Cámara (2,525) 100% 99.9% CGVC (1,048) 30% 67.0% Total 70,803 51, ,000 80,000 60,000 40,000 20,000 21,629 7,806 76,817 22,070 85,611 Others Red Salud Consalud Habitat 0 1H13 1H14 (*) According to Superintendency of Health regulation. (**) According to the current dividend policy of each subsidiary as of June 2014 ILC Page 28 28

29 Estrictamente Company Presentation September 14 For more information, please contact with: Ignacio González R. María Paz Merino Pagola CFO Head of Investor Relations Phone: (56 2) Phone: (56 2)