Company Presentation

Transcription

1 Estrictamente Company Presentation May15 1 1

2 Estrictamente Company Overview Insurance Sector Revenues Net Income % Ownership Supplemental health insurance US$128.6 mm US$6,9 mm 99.9% Life Insurance Company (Annuities) US$640.7 mm US$19.4 mm 72.4% NonInsurance Sector Revenues Net Income % Ownership Pension funds administration (AFP) US$231.6 mm US$155.8 mm 67.5% Mandatory health insurance (ISAPRE) US$559.2 mm US$11.9 mm 99.9% Hospital healthcare services Outpatient healthcare services US$351.2mm US$3.5 mm 89.9% IT and outsourcing services US$7.0 mm US$0.38 mm 32.9% 2 2

3 Estrictamente ILC s Highlights Largest IPO in Chile (US$ 468 million) Awarded in Peru (1 st auction) ILC sold 51% (US$ 200 million) D&S in Peru (1 st auction) ILC acquired 67% (US$ 167 million) Jul12 Dec12 Jun13 Sep13 Nov13 CGVC acquired 27.9% of Corpvida (US$52 million) MoU signed for 50,5% (US$ 90 million) MoU to share control in Habitat ($925 per share) D&S in Peru (2 nd auction) Awarded in Peru (2 nd auction) Jul14 Aug14 Oct13 Dec14 Dec More than USD 300 million invested in the last 3 years 3 3

4 Ownership and stock price Estrictamente Ownership structure Dec14 Others Stockbrokers 4.7% 11.5% Year Dividend (CLP) Dividend paid 2012 $548 Dividend yield at $7,061 (IPO price) 7.76% Internationals 16.8% 2013 $ $ % 6.36% CChC 67.0% Market Ratios (May15) TOTAL $1, % Dividend policy: 60% 80% Stock Price Evolution (May8 th ) Peers P/E P/BV 40.0% Banmédica Bupa Chile Provida Habitat ILC 21.9x 24.9x 10.1x 9.6x 11.3x 5.3x 1.9x 3.3x 3.8x 1.6x 30.0% 20.0% 10.0% 0.0% 10.0% 20.0% 30.0% ILC IPSA $7,775 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 Savings Programmed Withdrawal Habitat average: Ch$ 691,162 (US$ 1,139) Chile average: Ch$ 636,713 (US$ 1,049) 5 5

6 Our subsidiaries Estrictamente Our Business 6 6

7 Habitat Estrictamente Income Statement (Th.US$*) Revenues Cost of sales SG&A Dec ,569 Gross Profit 231,569 (98,483) Dec , ,233 (88,431) Var. % 8.6% 8.6% 11.4% Created in 1981 under the new provisional system The only AFP under the same controller through all its history Operating Income 132, , % 67.5% owned by ILC Gain (loss) of the encaje 52,886 24, % EBITDAE** 146, , % Net Income 155, , % One of the most efficient AFP in terms of cost control and the second cheapest on fees Total AUM in the industry = US$165.4 bn **EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat s encaje. * Exchange rate of Ch$ as of December 31st,

8 Habitat Estrictamente 45,000 40,000 35,000 30,000 25,000 20,000 Evolution of Habitat AUM (US$ Million) CAGR: 6.8% 41,805 42,653 42,820 37,281 36,305 30, Contributor average salary Mandatory individual capitalization account Contributions = 10% of gross salary (capped at ~US$3,000 per month) Voluntary pension contributions Tax exempt, up to a certain amount Voluntary savings account Allows withdrawals at any time Programmed withdrawals Pension payment option in which retirees maintain their account with the AFP Contributors Distribution (As of Dec14) Ch$ 1,800,000 1,705, , , , , , , , , , , , , , , , , , , , , , Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 1 Contributors / affiliates Source: Superintendencia de pensiones CAGR: 8.3% Industry Habitat 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 1,178, , , , ,679 Provida Habitat Capital Modelo Cuprum Planvital Mandatory Fee 1.54% 1.27% 1.44% 0.77% 1.48% 0.47% Contribution rate % 58.9% 57.8% 48.2% 77.0% 56.3% Privado 8y Confidencial 8

9 Estrictamente Habitat Peru As of June 1st 2013, Habitat started operations in Peru. All the new entrant into the formal sector contribute into Habitat for two years December 2014, Habitat was awarded in the second auction in Peru 1,000,000 beneficiaries expected after two 50,000 0% auctions 4,354 67, , , , , ,388 0 jun13 sep13 dec13 mar14 jun14 sep14 dec14 450, , , , , , , ,000 Affiliates v/s Market Share Evolution 1% 2% 3% 4% 6% 7% 8% 7% 6% 5% 4% 3% 2% 1% 0% Mandatory mix fee rate after the first auction (%) Profuturo Over the contribution 1.49% Over the AUM 1.20% Integra 1.55% 1.20% Prima 1.51% 1.90% Habitat 0.47% 1.25% Average 1.26% 1.39% 9 9

10 Estrictamente Our companies in the health business Average monthly contribution per contributor: USD $128.1 Average monthly contribution per beneficiary: USD $18.7 Medical Bill 10% of the gross salary is the average contribution % of the Net Salary Monthly premiums Copayment between the company and the employee % covered by: % covered by: the person 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,

11 Estrictamente Consalud Income Statement (Th. US$*) Dec 14 Dec 13 Var. % Revenues Cost of sales Gross Margin SG&A 559,234 (474,097) 85,137 (76,663) 514,743 (439,072) 75,671 (67,844) 8.6% 8.0% 12.5% 13.0% Created in 1984 under the new provisional health system (Isapre) 99.9% owned by ILC Operating Income EBITDA** 11,284 11, % 19,566 19, % The price of GES rose to UF due to the inclusion of 11 new diseases, since July 1st, 2013 Net Income 11,964 13, % Total Contributors in the industry = 1,772,584 Masvida 16.5% Others 5.1% Consalud 20.5% Colmena 16.2% Banmédica 20.4% Cruz Blanca 21.2% **EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost. *Exchange rate of Ch$ as of December 31st,

12 Estrictamente Consalud Loss ratio (as of Dec14) 84.2% 84.9% 85.7% 86.9% 87.9% 89.2% Average monthly contribution in US$ (Dec14) Medical plans Products offered Open network plans Preferred provider plans Closed network plans Complementary product offerings Additional coverage for catastrophic diseases Dental plans Pharmacy plans Revenues per Beneficiary (CLP) CAGR: 9.4% Source: Superintedencia de Salud and ILC 1 Operating revenues divided by the number of contributors. Exchange rate of Ch$5606,75 as of December30 th,2014; 2 Operating expenses divided by operating revenues Privado 12y Confidencial 12

13 Estrictamente Red Salud Income Statement (Th. US$*) Dec 14 Dec 13 Var. % Revenues Cost of sales Gross Margin 351,055 (278,021) 73, ,142 (248,204) 68, % 12.0% 5.9% One of the main private healthcare providers, reaching close to 18.6% of the private beds in Chile SG&A Operating Income EBITDA** (52,369) (47,175) 11.0% 20,665 21, % 39,941 38, % 89.9% owned by ILC National coverage through a network of 16 hospitals and 33 medical centers Net Income 3,471 6, % **EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost. *Exchange rate of Ch$ as of December 31st, Number of beds Red Salud market share (in terms of private hospital beds) 18,6% Source: ILC, annual reports of the companies as filed with the SVS, except Clinica Alemana, where the information has been derived from its website * Number of beds from our 12 regional hospitals 13 13

14 Estrictamente Red Salud: Main subsidiaries P&L (Dec14) Income Statement (Th. US$*) Megasalud Bicentenario Tabancura Avansalud Iquique Revenues 148,864 70,673 56,547 58,041 11,366 Cost of sales (120,561) (59,593) (43,150) (43,491) (7,368) Gross Margin 28,303 11,081 13,397 14,550 3,980 SG&A (19,234) (10,882) (9,066) (7,724) (2,553) Operating Income 9, ,332 6,826 1,427 EBITDA* 14,211 3,894 6,682 10,920 1,962 EBITDA Mg. 9.5% 5.5% 11.8% 18.8% 17.3% Net Income 7,468 (3,518) 2,730 3, Operating Data Average occupancy rate 80.5% 74.2% 67.0% 56.7% Average length of stay (days) Composition of the revenues (CLP million) *EBITDA calculated as Operating Income minus depreciation and amortization 14 14

15 Estrictamente Vida Cámara Income Statement (Th. US$*) D&S Chile Gross Profit* D&S Peru Gross Profit* Health & life insurance Gross Profit* Gross Profit SG&A Operating Income Non Operating Income Net Income Dec 14 (8,073) (5,613) (3,291) (8,086) (11,377) Dec 13 (6,357) (278) (3,188) (3,466) (6,853) (2,407) Var. % 27.0% N/A 1084% 153.6% 228% % Complementary health premiums market share (Dec14) 6.9% 6.9% 9.1% 23.0% 10,395 6, % MetLife EuroAmérica Security Previsión BICE Vida 184% On January 2012 launch the complementary health insurance business, adding more than 9,000 beneficiaries per month As of September 23rd 2013, Vida Cámara was awarded, with two of seven fractions, the D&S insurance auction in Peru. As of May 12th 2014, Vida Cámara was awarded, with two of nine fractions of the male pool, in the D&S auction in Chile. 7.3% Vida Cámara 13.5% Sura 8.6% Chilena Consolidada 12.4% 12.4% BCI Seguros Vida Others 15 15

16 Estrictamente Vida Cámara Evolution of beneficiaries for the complementary health insurance In average, more than 9,000 beneficiaries per month Recent projects Complementary health insurance Life and catastrophic insurance Entrance in Peru New D&S Contract in Chile 16 16

17 Estrictamente Corp Group Vida Chile Income Statement (Th. US$*) Noninsurance activity profit Revenues from insurance activity Revenues from financial result Cost of sales Gross Margin SG&A Operating Income Insurance activity profit Net Income Dec 14 (11,364) Dec 13 (12,102) Var. % 6.5% 473, , , ,780 7,3% 12.6% (781,150) 50,991 (791,419) 37, % 35.8% (25,927) 25,064 (60,445) (22,883) 57.1% 210% 25,719 (8,490) 403% 17,042 (15,675) 209% 14.6% Market share on annuities 7.5% Market share on life insurance direct premium 16.3% Market share on AuM More than 300,000 policy holders in CorpVida Annuities market share in AuM (Dec14) 4.2% 6.51% 20.8% MetLife CGVC 7.3% Consorcio Nacional Penta Vida 9.5% BICE Vida 14.3% Sura 10.9% Principal Chilena Consolidada 12.7% 13.8% Others 17 17

18 Estrictamente Corp Group Vida Chile Subsidiaries results Income Statement (Th. US$*) Dec 14 Dec 13 Var. % Revenues from premium Revenues from investments Reserves and claims 63,608 67, % 158, , % (189,078) (189,055) 0.0% Gross Profit 32,733 8, % SG&A (6,446) (5,913) 9.0% Operating Income 26,287 2,152 1,121% Nonoperating Income 1, % Net Income 22,998 8, % Income Statement (Th. US$*) Dec 14 Dec 13 Var. % Revenues from premium Revenues from investments Reserves and claims 434, , % 181, , % (592,918) (590,960) 0.3% Gross Profit 23,246 18, % SG&A (24,227) (23,016) 5.3% Operating Income (981) (4,888) 79.9% Nonoperating Income 1,312 (17,586) 108% Net Income 2,721 (16,627) 116% 18 18

19 Financial Summary Estrictamente Financial Summary 19 19

20 Estrictamente Balance Sheet (Th. US$) Balance Dec 14 Dec 13 Income Statement Dec 14 Dec 13 Total current assets Total non current assets Total insurance assets 363, ,687 1,265,013 1,173,246 7,998,096 7,142,398 Non insurance activity operating income Non insurance activity non operating income 158,627 23, ,902 58,109 TOTAL ASSETS 9,626,955 8,691,331 Insurance activity operating income 13,687 (257) Total current liabilities 352, ,587 Insurance activity non operating income 3,281 2,251 Total non current liabilities Total insurance liabilities 708,939 7,430, ,847 6,574,713 Minority Interest (53,212) (45,104) TOTAL EQUITY 1,134,823 1,183,184 NET INCOME 114, ,110 TOTAL EQUITY & LIABILITIES 9,626,955 8,691,331 Non insurance activity EBITDAE** 210, ,837 (**)EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat s encaje. US$* Thousand Dec 14 US$* Thousand Dec 14 COVENANT < 1.0 X Short term debt 327,800 Cash & cash equivalent 320,011 Net Fin. Debt / Total Equity 0.55 x Long term debt Total financial debt 613, ,146 Total equity 1,134,113 LOCAL CREDIT RISK Feller Rate ICR AA+ AA+ (*)Exchange rate of Ch$ as of December 31 st,

21 Financial Data (as of Dec14) Estrictamente Financial Debt (Million US$) ILC Habitat Vida Cámara CGVC C. Machalí Consalud Red Salud TOTAL Short Term Bonds Bank loans Leasing Short Term Bonds Bank loans Leasing TOTAL Cash Flow from our main subsidiaries (Dec14) Dividends from our subsidiaries (Dec14) Dec14 (USD Th.) Distributable Net Income Dividend Policy Ownership Dividend to ILC Habitat 96,444 90% 67.5% 58,573 Red Salud 3, % 89.9% 3,120 Consalud* 15, % 99.9% 15,428 Vida Cámara (6,852) 100% 99.9% CGVC 17,042 30% 72.4% 3,702 TOTAL 125,547 80,823 (*) According to Superintendency of Health regulation. (**) According to the current dividend policy of each subsidiary as of December

22 Estrictamente For more information, please contact with: Ignacio González R. María Paz Merino Pagola CFO Head of Investor Relations Phone: (56 2) Phone: (56 2) Privado 22y Confidencial 22