AFP Habitat Company Presentation

Transcription

1 AFP Habitat Company Presentation Southern Cone & Andean Conference June Lima, Peru

2 Industry Overview 2

3 AFP Industry Overview Chilean legislation (Law Decree 3500) established a compulsory individual capitalization system with privately-managed pension funds (AFP) New AFP system launched with 12 players AFPs authorized to invest in corporate stocks In accordance with regulatory modifications, each AFP introduces a 2 nd fund Creation of multi-fund system (5 funds); non-afp asset managers permitted to offer voluntary pension savings product (APV) Pension Law Reform Joint bidding of life and disability insurance (SIS); AFPs serve only as passthru entities for insurance premiums A new AFP is awarded a 2-year auction for new affiliates; consequently, today there are 6 AFPs (each with 5 funds) in the Industry 3 of the 4 largest AFPs are acquired by foreign entities 3

4 AFP Industry Composition: (12) 1990 (14) 1994 (21) 1995 (15) 1998 (8) 2004 (6) 2008 (5) 2013 (6) HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM ALAMEDA SN CRISTOBAL UNION UNION UNION Since 1981, Habitat is one of only two AFPs that has grown organically and not via M&A PROTECCION PROTECCION PROTECCION EL LIBERTADOR EL LIBERTADOR EL LIBERTADOR PROVIDA PROVIDA PROVIDA PROVIDA PROVIDA PROVIDA PROVIDA PROVIDA BANGUARDIA SANTA MARIA SANTA MARIA SANTA MARIA SANTA MARIA SANTA MARIA SANTA MARIA SUMMA SUMMA BANSANDER SUMMA BANSANDER SUMMA SUMMA-BANS SUMMA-BANS CAPITAL CAPITAL APORTA FOMENTA APORTA FOMENTA APORTA-FOM. FUTURO FUTURO FUTURO ARMONIZA ARMONIZA PREVIPAN VALORA VALORA QUALITAS MAGISTER MAGISTER MAGISTER MAGISTER MAGISTER CONCORDIA CONCORDIA CONCORDIA PLANVITAL PLANVITAL PLANVITAL PLANVITAL PLANVITAL PLANVITAL PLANVITAL PLANVITAL INVIERTA INVIERTA BANNUESTRA GENERA MODELO 4

5 AFP Products Offering CCICO (Individual Compulsory Contribution Capitalization Accounts) Compulsory savings = 10% of gross salary base 1 Fees: 0.77%-2.36% of salary base (Habitat = 1.27%) APV (Voluntary Contributions) Voluntary pension contributions Tax benefits on amounts <= UF 600 / UF 900 year 2 Annual Fee: 0.50%-0.70% AUM (Habitat = 0.55%) CAV (Voluntary Contribution Account) Voluntary savings contributions Eligible for tax benefits Annual Fee: 0.60%-0.95% AUM (Habitat = 0.95%) RP (Programmed Withdrawals) Pension payment alternative whereby affiliate maintains pension account with the AFP Fee: 0.95%-1.25% of monthly pension amount (Habitat = 0.95%) 1.1% 2.0% 1.6% 95.3% 3 Industry Revenues from Fees CCICO CAV APV RP 1: Gross salary base: gross salary (in 2013 capped at UF 70.3 or USD 3,420) subject to compulsory deductions. Fx (CLP/USD): UF (CLP): 22, : UF 600 = USD 29,189; UF 900 = USD 43,784. Fx (CLP/USD): UF (CLP): 22, : Industry revenues from fees Q = USD 284 MM ; Jan-Mar 2012= USD 257 MM. Source: Superintendencia de Pensiones ( SP ).

6 AFP Habitat Overview 6

7 Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Chilean Construction Chamber (Cámara Chilena de la Construcción, or CChC) CChC controls AFP Habitat through Inversiones La Construcción (ILC) It is the 2 nd largest AFP, in terms of affiliates, contributors, and assets under management (AUM) 1 It is the largest AFP in voluntary products AUM (APV and CAV) 1 Market Capitalization: USD 1.6 bn 2 Employees: 1, branches, 16 service centers and 22 mobile branches nationwide 1 AUM: USD 42.9 bn 1 Ownership Board Members 3 AFP Habitat had 401 registered shareholders as of Apr % 28.8% 67.5% ILC Inversiones Unión Española S.A. Others José Antonio Guzmán M. President Luis Nario M. Vice-President Jaime Danús L. Director José Miguel García E. Director Fernando Zavala C. Director Klaus Schmidt-Hebbel D. Director Luis Rodríguez V. Director Source: SP and Bolsa de Comercio de Santiago ( BCS ). 1: Information as of May : Information as of June 24, Fx (CLP/USD): : Elected on April 25,

8 Stock Price Evolution YTD YTD 1981: CChC creates AFP Habitat w/ 1MM shares; Mkt Cap: CLP 100 MM 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high share price of CLP 1,010 CLP Price (Base 100, 31 Dec-2010) Volume (CLP MM) 4,000 3, : CChC purchases Citigroup s shares and then re-sells 14%; Mkt Cap: CLP 475,000 MM ,000 2, : Creation of CSV (life insurance company) using funds obtained from AFP Habitat dividends 1996: Citigroup becomes shareholder; Mkt Cap: CLP 79,500 MM 2008: Pension reform introduced 2004: First discussions regarding pension reform 1998: tender offer for 9.3% of shares; Mkt Cap: CLP 68,010MM 2008: Int l financial crisis (Lehman Bros.) ,000 1,500 1, Jan/85 Jan/87 Jan/89 Jan/91 Jan/93 Jan/ : Share split: 1000x1 Jan/97 Jan/99 Jan/01 Jan/03 Jan/05 Jan/07 Jan/09 Jan/11 Jan/ Dec/10 Feb/11 Apr/11 Jun/11 Aug/11 Oct/11 Dec/11 Feb/12 Apr/12 Jun/12 Aug/12 Oct/12 Dec/12 Feb/13 Apr/13 0 Volume Traded Habitat IPSA IGPA Market Cap: USD 1.6 bn 1 Source: BCS. 1: Information as of June 24, Fx (CLP/USD):

9 AFP Habitat Compulsory Products 9

10 Compulsory Products Compulsory (CCICO) System Habitat MS Habitat Ranking Habitat 1.8% 2.8% 1.3% % Revenues from Fees % 94.2% 22.7% 2 Affiliates MM 2.1 MM 22.8% 2 Contributors MM 1.3 MM 23.6% 2 Avg. Monthly Salary (USD) 2 1,218 1,307-2 AUM (USD bn) % % AFP Habitat Revenues from Fees CCICO CAV APV RP Programmed Withdrawals (RP) System Habitat MS Habitat % Revenues from Fees 1 1.6% 1.3% 18.5% N Pensions Paid 3 498,662 81, % Source: SP. 1: Information as of Mar : Information as of Apr Fx(CLP/USD): : Information as of May Fx (CLP/USD):

11 Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 40% MS (%) Contributors (Avg. LTM Apr-2013) 35% 30% 25% 20% 15% 10% Cuprum Modelo Capital Provida MS (%) Contributors (Avg. LTM Apr-2013) 35% 30% 25% 20% 15% 10% Modelo Capital Cuprum Provida 5% Planvital 5% Planvital 0% 0% 10% 20% 30% 40% MS (%) Affiliates (Avg. LTM Apr-2013) Source: SP, as of Apr : Total Salary Base: Internal estimate. 0% 0% 5% 10% 15% 20% 25% 30% 35% MS (%) Total Salary Base 1 (Avg. LTM Apr-2013) 11 11

12 Affiliates, Contributors & Salary Base (Cont d) Affiliates & Contributors (MM) UF MM Affiliates (MM) Contributors (MM) Salary Base (Monthly Avg.) (UF MM) Source: SP, as of Apr UF (CLP): 22,

13 Market Share by Salary Base MS (%) Monthly Contributors 30% 25% 20% 15% 10% 5% 0% 22.6% 21.2% 18.7% 26.3% 24.7% 22.5% 26.7% 28.1% 27.4% 25.7% 28.5% 28.3% 27.9% 28.4% 27.1% 27.6% , % 24.0% 25.8% 25.1% > 1,200 Total 23.9% (CLP th) Mar-2011 Mar-2012 Mar-2013 As of Mar-2013, AFP Habitat had: 26.3% of contributors with a monthly salary base over CLP 850 th (USD 1,799), vs 25.1% in Mar % market share over the USD 2,539 monthly salary base vs. 24.0% in Mar-2011 Source: SP, as of Mar Fx (CLP/USD):

14 AFP HABITAT Voluntary Savings (APV & CAV) 14

15 Voluntary Products APV System Habitat MS Habitat Ranking Habitat 1.8% 2.8% 1.3% % Revenues from Fees 1 2.0% 2.8% 32.1% 2 # Accounts 2 833, , % 4 AUM (USD MM) 2 4,597 1, % % AFP Habitat Revenues from Fees CAV System Habitat MS Habitat Ranking Habitat CCICO CAV APV RP % Revenues from Fees 1 1.1% 1.8% 36.8% 1 # Accounts 2 1,742, , % 3 AUM (USD MM) 2 1, % 1 Source: SP. 1: Information as of Mar : Information as of Apr Fx (CLP/USD):

16 AFP Habitat: Leader in Voluntary Products CLP MM 1,200,000 1,100,000 1,000, , , ,000 1,002, , , , , , , , , ,000-23,194 7,922 Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM Source: SP, as of Apr

17 Voluntary AUM Evolution # of accounts 600,000 USD MM 2, , , , , ,000 2,000 1,500 1, # of Accounts AUM USD MM APV AUM growth rate Apr-2013/Apr-2012: Habitat: 17.1%; AFP Industry: 7.8% CAV AUM growth rate Apr-2013/Apr-2012: Habitat: 8.0%; AFP Industry: 3.3% The regulator as well as industry players are constantly seeking ways to encourage individuals to supplement their compulsory pension savings Source: SP, as of Apr Fx (CLP/USD):

18 AFP HABITAT Financial Statements 18

19 Income Statement IFRS CLP MM Mar-2013 Mar-2012 Var. % Revenues 31,426 31, % Gain (Loss) on Reserve Requirements 4,645 8, % Gain (Loss) on Disability Insurance Premium (31) (42) -25.3% Remuneration and Employee Related Expenses (5,673) (5,096) 11.3% Depreciation and Amortization (523) (482) 8.6% Other Operating Expenses (5,434) (4,207) 29.2% Financial Costs (9) (3) 172.7% Income (Loss) from Investments % Share of Profit (Loss) from Related Partners % Exchange Differences (8) (14) -44.5% Result on Indexed Unit Adjustments % Other Non-Operating Income 2, % Other Non-Operating Expenses (69) (68) 1.6% Profit (Loss) before Tax 28,243 31, % Income Tax Expenses (5,820) (5,274) 10.3% Net Profit (Loss) 22,423 26, % EBITDA 1 28,775 31, % EBITDAR 2 24,130 23, % Source: SP and AFP Habitat. 1: EBITDA: Net income before depreciation, amortization, financial costs and taxes. 2: EBITDAR: EBITDA before return on mandatory reserve requirements. 19

20 Balance Sheet IFRS CLP MM Mar-2013 Mar-2012 Var. % CURRENT ASSETS 64,861 55, % NON CURRENT ASSETS 225, , % Reserve Requirements 204, , % Other Non Current Assets 21,470 23, % TOTAL ASSETS 290, , % CURRENT LIABILITIES 14,479 11, % NON CURRENT LIABILITIES 23,615 18, % Accrued Taxes from Reserve Requirements 22,939 17, % Other Non Current Liabilities % SHAREHOLDERS EQUITY 252, , % Non-controlling interest 2 0 NA TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 290, , % Source: SP and AFP Habitat. 20

21 2012 Income Statement IFRS CLP MM Dec-2012 Dec-2011 Var % Revenues 121, , % Gain (Loss) on Reserve Requirements 13,060-1,846 - Gain (Loss) on Disability Insurance Premium % Remuneration and Employee Related Expenses -22,626-20, % Depreciation and Amortization -1,907-1, % IT Development Costs Other Operating Expenses -20,804-17, % Financial Costs % Income (Loss) from Investments 2,837 2, % Share of the profit (loss) from equity accounted associates 3,387 2, % Exchange Differences % Result on indexed unit adjustments % Other Non-Operating Income % Other Non-Operating Expenses % Profit (Loss) before Tax 95,363 75, % Income Tax Expenses -20,787-14, % Net Profit (Loss) 74,576 61, % EBITDA 1 97,270 77, % EBITDAR 2 84,209 79, % Source: SP and AFP Habitat. 1: EBITDA: Net income before depreciation, amortization, financial costs and taxes. 2: EBITDAR: EBITDA before return on mandatory reserve requirements. 21

22 Dec-2012 Balance Sheet IFRS CLP MM Dec-2012 Dec-2011 Var % Current Assets 59,840 49, % Non Current Assets 219, , % Reserve Requirements 197, , % Other Non Current Assets 21,401 22, % TOTAL ASSETS 279, , % CLP MM Dec-2012 Dec-2011 Var % Current Liabilities 26,193 22, % Non Current Liabilities 22,542 16, % Accrued Taxes from Reserve.Requirements 21,870 16, % Other Non Current Liabilities % Shareholders Equity 230, , % TOTAL LIABILITIES AND.SHAREHOLDERS EQUITY 279, , % Source: SP and AFP Habitat. 22

23 Results Evolution CLP MM CLP MM 80,000 22,000 65,000 17,000 50,000 12,000 35,000 7,000 20,000 2,000 5,000-10, Mar-2012 Mar ,000-8,000-25,000 Profit Profit (Loss) from Mandatory Reserve EBITDAR 1 Source: AFP Habitat Financial Statements. Financial Statements under IFRS. 1: EBITDAR: EBITDA before return on mandatory reserve requirements. EBITDA: Net income before depreciation, amortization, 23 financial costs and taxes.

24 Revenue Evolution Overview Contributors (Average LTM Mar-2013) 25.2% 1,240, % 24.3% 1,266, / / % 28,806,007 Salary Base (UF) (Average LTM Mar-2013) 8.7% 25.8% 31,491, / /13 Milestones Mar-2013: Improvement in domestic labor market (increase in salaries and low unemployment rate) Contributors/affiliates ratio: o LTM Mar-2013: 58.9% o LTM Mar-2012: 57.1% CLP MM / UF MM Salary Base and Revenues from Fees Evolution Revenues from Fees (CLP MM) Total Salary Base (UF MM) Mar-12 Mar-13 0 Source: SP and AFP Habitat. 24

25 Operating Costs Structure Current Commissions All Commissions =1.27% 120.0% 120.0% 100.0% 100.0% 0.8% 80.0% 80.0% 47.9% 60.0% 40.0% 20.0% 0.0% 0.4% 1.0% 26.2% 0.6% 2.1% 18.6% 1.7% 3.7% 8.4% 17.4% 16.8% 23.9% 28.7% 27.6% 30.3% 18.2% 21.8% 14.1% HABITAT CAPITAL 1 CUPRUM MODELO PLANVITAL PROVIDA2 Employee Expenses Other outflows from operations Depreciation and Amortization 60.0% 1.1% 2.6% 21.0% 4.3% 40.0% 1.7% 9.7% 20.9% 16.8% 0.4% 55.3% 20.0% 32.4% 31.7% 15.4% 26.2% 18.2% 9.1% 0.0% HABITAT CAPITAL1 CUPRUM MODELO PLANVITAL PROVIDA2 Employee Expenses Other outflows from operations Depreciation and Amortization In Q AFP Habitat has continued to be the most efficient AFP, and one of the most efficient when adjusting for commissions (Habitat has the 2 nd lowest CCICO fee in the industry) Source: SP, Individual Financial Statements as of Mar Fx (CLP/USD): : Capital: excludes amortization of intangible assets with a defined useful life (acquisition of 100% shares of AFP Bansander). 2: Provida: excludes amortization of intangible assets acquired through the merger of its operations. 25

26 Dividend Policy AFP Habitat s Dividend Policy Distribute a minimum of 90% of distributable net income (DNI): o Annual net income, minus the financial gains on the required reserve in the event that it is positive, and minus net reserves purchased in the period Policy of interim dividends: twice per year Dividends distributed over 2012 net income CLP 52,000 MM (CLP 52 per share) o o o Oct 2012: CLP 10 per share Jan 2013: CLP 10 per share May 2013: CLP 32 per share Equals 97.8% of 2012 DNI (DNI = CLP 53,172 MM ; 90% = CLP 47,856 MM) Dividends distributed over 2011 net income CLP 50,000 MM (CLP 50 per share) o o o Oct 2011: CLP 9 per share Jan 2012: CLP 9 per share May 2012: CLP 32 per share Equals 90.9% of 2011 DNI (DNI = CLP 54,982 MM; 90% = CLP 49,483 MM) 26

27 AFP HABITAT New Businesses 27

28 Operation in Peru On December 20, 2012, AFP Habitat was awarded the first new affiliates auction in Peru AFP Habitat to receive all new entrants for a 2-year period o Total of new affiliates expected Commercial launch took place on June 1 st, 2013 Total investment of approximately USD 20 MM during the first 4 years Commissions: Peruvian AFP s Commission on Flows Commission on Flows (Monthly) Mixed Commissions Commission on AUM 1 (Annually) Habitat N/A 0.47% 1.25% Integra 1.74% 1.55% 1.20% Prima 1.60% 1.51% 1.25% Profuturo 1.84% 1.49% 1.20% Source: AFP Habitat and Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones ( SBS ). 1 Fee applied over AUM incorporated into the system starting on February 1,

29 Operation in Peru (Cont d) Economic Overview Demographics 2012 GDP: USD bn GDP Growth: 6.3% Inflation: 2.65% 1 Country risk premium: 169 bps 3 Population: 30.1 MM 1 Workforce: 10.7 MM 2 Unemployment: 6.8% * (Lima) Pension Fund Industry Overview AFP Affiliates (MM) 4 % Contributors (MM) 5 % Contributors 5 / Affiliates 5 AUM (USD bn) 4 % Horizonte % % 40.9% % Integra % % 49.2% % Prima % % 50.3% % Profuturo % % 37.5% % Total % % 44.7% % 1: Source: Banco Central de Reserva del Peru. 2: Source: Instituto Nacional de Estadísiticas e Informática del Perú. 3: Source: Bloomberg CDS average as of 24-June : Source: SBS, as of May Fx (PEN/USD): : Source: SBS, as of Feb : Horizonte was acquired by Integra and Profuturo on a 50/50 deal. 29

30 AFP HABITAT Funds Performance 30

31 AFP Habitat: Leader in Return on Investment 1st 2nd 3rd 4th 5th 6th Account 12 MONTHS (%) 36 MONTHS (%) 60 MONTHS (%) Statements A B C D E A B C D E A B C D E Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Notas: La rentabilidad es variable, por lo que nada garantiza que las rentabilidades pasadas se repitan en el futuro. Infórmese sobre las comisiones y el resultado de la medición de la calidad de servicio de su AFP en Source: SP. Circulares N 1581, 1613, 1658, 1682, 1701, 1755, 1767, 1799, 1809, 1823, 1839 and

32 AFP Habitat: Leader in Return on Investment (Cont d) 1st 2nd 3rd 4th 5th 6th AF P CAPIT AL_Ranking Ac c ount s 12 MONT HS 36 MONT HS 60 MONT HS St at ement A B C D E A B C D E A B C D E Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec AFP CUPRUM_Ranking Ac c ount s 12 MONT HS 36 MONT HS 60 MONT HS St at ement A B C D E A B C D E A B C D E Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec AFP MODELO_Ranking Ac c ount s 12 MONT HS St at ement A B C D E Apr Dec Aug Apr Dec Aug AFP PLANVIT AL_ Ranking Ac c ount s 12 MONT HS 36 MONT HS 60 MONTHS Stat ement A B C D E A B C D E A B C D E Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec AFP PROVIDA_Ranking Ac c ount s 12 MONTHS 36 MONTHS 60 MONT HS St at eme nt A B C D E A B C D E A B C D E Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Aug Apr Dec Notas: La rentabilidad es variable, por lo que nada garantiza que las rentabilidades pasadas se repitan en el futuro. Infórmese sobre las comisiones y el resultado de la medición de la calidad de servicio de su AFP en Source: SP. Circulares N 1581, 1613, 1658, 1682, 1701, 1755, 1767, 1799, 1809, 1823, 1839 and

33 AFP Habitat Funds Breakdown Fund A: USD 6.9 bn Fund B: USD 8.1 bn Fund C: USD 16.3 bn 9% 19% 13% 20% 39% 15% 17% 22% 13% 59% 28% 46% Fund D: USD 5.7 bn E: USD 5.9 MM 11% 7% 11% 0% 2% 1% Total: USD 42.9 bn 71% 97% Int'l Stocks Local FI Int'l FI Local Stocks Source: SP, as of May F/X (CLP/USD): CLP

34 AFP HABITAT Commercial Highlights 34

35 New Services since Habitat Móvil 22 mobile branches Coverage: 176 counties (comunas) Website chat service 12 Branches opening on Saturday mornings New contract signed with two financial institutions in order to increase the pension payment Business hours extension in the call center Friday afternoon and Saturday morning Online Appointment Reservation 35

36 Contact with our Customers Branch Offices We serviced over 500 th customer visits in our branch offices until April 2013 Nationwide coverage currently includes 27 branches, 16 service centers and 22 mobile branches Internet & Mailings Up until Jan-Apr 2013, our website visits totaled 2.9 MM and over 3 MM transactions were executed virtually Call Center Between Jan-Apr 2013, we received over 260,000 calls in our Contact Center 43.3% of calls were directly taken by a service assistant 36

37 Contact with our Customers (Cont d) Website Chat This new online chat assistance service allowed over 19 thousand contacts from Jan-Apr 2013 Habi-Express (Self-Service) In Q12013 over 500 th clients were serviced through the self-service Habi-Express machines 64 self-service machines located in branch offices throughout the country Smart Phones Up to April ,560 transactions were executed via smartphones 3.0x the activity observed same period

38 Contact with our Customers (Cont d) Account Statements In February 2013, over 2.0 MM account statements were sent to our affiliates 37% of these were ed Social Networks As of May, 22nd, 2013 we had over 666 followers on Facebook and Twitter First AFP to use social networks Advisory Services As of April, 2013 Habitat has 81account executives dedicated to providing personal advisory services to current and potential clients Intensive promotion of voluntary savings products 38

39 AFP Habitat Company Presentation Southern Cone & Andean Conference June Lima, Peru