Our Company. One of Chile s leading healthcare groups (~ US$1,0 billion in revenues) Insurance #2 Isapre in revenues

Transcription

1 October

2 Our Company 2 One of Chile s leading healthcare groups (~ US$1,0 billion in revenues) Insurance #2 Isapre in revenues avg beneficiaries avg policy holders 78 branch offices throughout the country Life Insurance Co. Outpatient #1 provider of private outpatient service 25 centers throughout Chile avg consultation rooms visits International Initiating Latam expansion Perú (outpatient) Hospitals Leading hospitals in their regions 3 hospitals 366 beds ~ hospitalizations Santiago hospital project (314 beds up to 460 beds) Attractive value proposition for our more than 6 million customers, employees and doctors

3 History of Growth, Profitability and Acquisitions Cruz Blanca Salud s strategy is based on diversification and growth Acquisition Peru Acquisition Acquisition Peru IPO 2013 Acquisition 2012 Incorporation 2011 Said Group enters the healthcare sector Acquisition Acquisition Isapre Acquisition Acquisition Acquisition

4 Ownership Structure (September 2013) Main shareholders with a strategic long term vision Other shareholders 15,66% Stockbrokerage houses 7,77% Private pension funds (AFPs) 6,42% Mutual funds 4,13% Insurance companies 0,42% Said Group 40,64% Securities funds 24,96% Fx rate: Ch$500/US$ 2013: between 1/1/2013 and 9/30/2013 Average daily traded volume of US$1,1 million in

5 Industry Dynamics Main Chilean Healthcare Players REVENUES (US$ millions) MARKET CAP (US$ millions) INSURANCE HOSPITALS OUTPATIENT CENTERS Estimated market share Estimated market share Estimated market share Empresas Banmédica % 13% 3% Cruz Blanca Salud % 3% 10% Inversiones la Construcción (1) % 8% 6% Bethia group 656 N/A 20% Masvida group (2) 525 N/A 14% 2% Clínica Alemana N/A N/A N/A Clínica Las Condes % Red Salud UC N/A N/A N/A N/A Clínica Indisa % Red U.de Chile N/A N/A N/A N/A (1) Excludes revenues for non related health businesses (Pension founds and others) (2) Estimated sales of 2012 LTM: last twelve months (June 2013 July 2012) Fx Rate: Ch$500/US$ 5

6 Strategic Guideline To double our EBITDA in 5 years through organic growth ( ) Expanding offering of health plans to market segments enrolled in the public insurer Low cost closed plans Growing in the provider business Main driver: Outpatient business Increasing profitability of current facilities and expanding capacity New outpatient centers: 16 Integramédica centers 6 Sonorad centers 3 Integramédica Perú centers Santiago hospital project: 314 beds (first stage) Increasing synergies among our businesses Hospitals master plans 70 beds 22 consultation rooms Insurance Provider Outpatient Hospitals International 6

7 FINANCIAL RESULTS 7

8 Consolidated Results (US$ millions) Revenues EBITDA CAGR (10-2Q 13) CAGR (10-2Q 13) (1%) 560,3 734,9 831,2 942,7 998,1 62,3 3,5 80,3 77,6 60,7 16, LTM 2011 revenues include business interruption insurance payment to Integramédica (US$ 3,5 million) LTM 2011 EBITDA includes business interruption insurance payment to Integramédica (US$ 3,5 million) Net profit CAGR (10-2Q 13) +2% 6,1 19,7 35,3 20,9 Sustained revenue growth; +10% CAGR in the last three years 2,1 34, LTM 2011 net profit includes insurance payment to Integramédica due to property damage and business interruption (US$ 6 million) Fx rate: Ch$500/US$ LTM: last twelve months (June 2013 July 2012) 8

9 Consolidated Results (US$ millions) Revenues breakdown (LTM) US$998 million Insurance 720 Outpatient 221 Hospitals 108 International 4 Others(1) (55) Consolidated 998 EBITDA breakdown (LTM) US$61 million Insurance 12 Outpatient 34 Hospitals 16 Summary balance sheet Q 2013 Current assets Non-current assets Total Assets Current liabilities Non-current liabilities Equity (Controlling shareholders) Equity (Minority interest) Total Liabilities + Shareholder's equity Net financial debt (NFD) NFD / EBITDA 0,8 x 1,9 x 2,2 x NFD / Equity 0,2 x 0,4 x 0,4 x International Others(1) (1) (0) Balanced generation of cash flow Consolidated 61 (1) Consolidation adjustments and other minor subsidiaries (Holding Cruz Blanca Salud S.A. and Servicios de Gestión Ltda.) Fx rate: Ch$500/US$ LTM: last twelve months (June 2013 July 2012) 9

10 Outpatient Business: Integramédica #1 private outpatient service provider #1 in revenues in the outpatient market % market share by revenues Multiformat multibrand strategy Integramédica = 17 outpatient centers Sonorad = 6 diagnostic centers Others (2 centers) Outpatient services at affordable prices Medical consultation / Imaging / Dental / Ancillary services/ Others 10% 90% Source: Cruz Blanca Salud Integramédica Others Chile s largest private clinical laboratory 27 specimen collection points Approximately ~ annual lab tests doctors 10

11 Integramédica, #1 Private Outpatient Provider Main lines of business: Outpatient centers: 85% of revenues medical consultations imaging dental services dermatology ancillary services Laboratory: 15% of revenues Processes exams from Integramédica and other providers Revenues US$ thousands CAGR (10-2Q 13) LTM 2011 revenue includes business interruption insurance payment to Integramédica (US$ 3,5 million) EBITDA and EBITDA margin US$ thousands / % CAGR (10-2Q 13) ,1% 20,3% 17,3% 15,1% LTM EBITDA margin 2011 EBITDA includes business interruption insurance payment to Integramédica (US$ 3,5 million) Fx rate: Ch$500/US$ LTM: last twelve months (June 2013 July 2012) 11

12 Hospital Business: Clínicas Reñaca, Antofagasta and San José de Arica, and Clinical Service (home care) Presence in three regions of the country Leading hospitals in their geographic areas (#1 in market share) High complexity sqm built 366 beds / 80 critical Clínica Reñaca 81 medical consultations Clinical Service one of the leading home health care providers Clínica Antofagasta 12

13 Leading Hospitals in their Geographic Areas Main business lines: Revenues US$ thousands Hospitalizations: 70% of revenues surgeries hospitality medications diagnosis exams CAGR (10-2Q 13) Outpatient services: 30% of revenues ER medical consultations diagnosis exams LTM EBITDA and EBITDA margin US$ thousands/ % CAGR (10-2Q 13) ,6% 18,6% 15,4% 15,0% LTM EBITDA margin Fx rate: Ch$500/US$ LTM: last twelve months (June 2013 July 2012) 13

14 Insurance Business: Isapre Cruz Blanca Operating since the creation of the private health system in Chile (1981) #2 in revenues in the Isapre market % market share by revenues Brand strengh (#2 in market share) 78 branch offices and three mobile offices (nationwide coverage) 27,5 21,7 19,7 17,5 13, th avg policy holders +629 th avg beneficiaries Banmédica Cruz Blanca Colmena Consalud Masvida Regulatory framework undergoing revision Source: Asociación de Isapres, June 2013 figures o Changes likely to provide increased certainty on business regulation Life Insurance Company start up 14

15 Isapre Cruz Blanca, #2 in Revenues One year contracts indexed to inflation Medical cost is subject to price and frequency of usage Revenues US$ thousands CAGR (10-2Q 13) Coverage includes medical leave Cost control through agreements with private hospitals and clinics, including Integramédica and Cruz Blanca Salud hospital network LTM Claims rate % 84,0% 84,2% 86,1% 88,4% LTM EBITDA and EBITDA margin US$ thousands / % CAGR (10-2Q 13) ,9% ,3% 4,1% ,6% LTM EBITDA margin Fx rate: Ch$500/US$ LTM: last twelve months (June 2013 July 2012) 15

16 Acquisitions Biolab Centro de Diagnóstico Dra. Pilar Gazmuri Resomasa (Peru) Clínica Santa Lucía Clinical Service Sonorad Anglolab (Peru) MediPerú (Peru) Fx rate: Ch$500/US$ Clínica Santa Lucía Main outpatient center of the San Bernardo area of Santiago Acquisition of 100% of equity = US$ 6,2 million sqm / 75 consultation, exam and procedure rooms EBITDA growth (LTM June ) = 115% Sonorad Outpatient network of diagnostic exams Acquisition of 100% of equity = US$ 13,8 million 6 outpatient centers / lab exams / imaging exams EBITDA growth (LTM June ) = 18% Clinical Service Home health care provider, #2 in market share Acquisition of 100% of equity = US$ 2,8 million Bed days 2011 = EBITDA growth (LTM June ) = 132% Anglolab Laboratory Acquisition of 70% of equity = US$ 6 million lab exams MediPerú Outpatient center of diagnostic exams Acquisition of 100% of equity = US$ 5,8 million sqm

17 INVESTMENT PLAN

18 Investment Plan : Capex ( ): US$ 350 million Life Insurance Co. US$ 6 million Santiago hospital US$ 150 million Perú US$ 35 million Isapre US$ 14 million Hospitals (existing) US$ 55 million Integramédica US$ 90 million Inorganic growth and development of new businesses Analysis of growth through M&A (recently Resomasa, Clínica Santa Lucía, Clinical Service, Sonorad and Anglolab) Fx rate: Ch$500/US$ 18

19 Investment Plan: Integramédica Integramédica format 13 centers Puente Alto S. Bernardo Maipú Santiago S. Bernardo Integ. 22 Integ. 23 Integ. 26 Integ. 27 Talca La Florida Integ. 24 Integ. 28 Concepción Integ. 25 Integ. 29 Sonorad format 6 centers Sonorad 7 Sonorad 8 Sonorad 9 Sonorad 10 Sonorad 11 Sonorad 12 Others format P. Gazmuri # centers Reference: Opened With contract To be defined Acquisition 19

20 Investment Plan: Life Insurance Company Life Insurance company: Flexible business model for possible outcomes from Isapre s regulation changes Seeks to participate in new health market segments, which have had a strong development through the last years (US$411 million market) Diversification in the generation of revenues Group synergies Additional products Health insurance Mandatory personal accident insurance Complementary companies insurance Fx rate: Ch$500/US$ 20

21 Investment Plan: Clínica Reñaca Master plan ~ US$21 million (40% of advance) Remodeling and expansion of the Hospital Operating room remodeling Increase of parking space Additional sqm Fx rate: Ch$500/US$ 21

22 Investment Plan: Clínica Antofagasta and San José Master plan Clínica Antofagasta Maternity hospital - Pediatric Starting in 2013 US$18 million investment sqm 70 additional beds at the beginning of 2015 Master plan Clínica San José Outpatient center Starting in 2013 US$3 millones investment sqm 22 new consultation rooms for 2015 Fx rate: Ch$500/US$ 22

23 Investment Plan: New Projects Perú Recently initiated activities in Perú: Creation of the subsidiary Cruz Blanca Salud Perú S.A.C. Acquisition of Resomasa (imaging) Analysis of opportunities in the outpatient, hospital and insurance businesses in Perú Integramédica Perú development plan: 2 centers per year for the next 3 years; reaching a total of 6 new centers Contract signed for the first location in Megaplaza Independencia, which allows to open the first outpatient center for the end of The center will have sqm surface with an investment of US$4,9 million Acquisition Anglolab Fx rate: Ch$500/US$ 23

24 Investment Plan: Hospital in Santiago Property acquired ( sqm) New Hospital in Santiago Total estimated investment of US$ 198 million (US$18 as of today) Initial capacity of 314 beds (up to 460 beds) New subsidiary created: Inversiones Clínicas CBS S.A. Perú Fx rate: Ch$500/US$ 24

25 Appendix: Industry Dynamics Policy holders and their dependants (together beneficiaries ) Insurance Market (1) US$ million Higher income population Q: 18% $: 35% Lower income population Q: 82% $: 65% Fonasa (public health insurance) Institutional mode Free choice mode Public provider (outpatient or hospital) Private provider (doctors, outpatient or hospital) Decision on which health insurance to choose (public or private) is made by policy holders Policy holders contribute a mandatory 7% of their salary, with a cap, and can contribute an additional voluntary amount Employers only collect employee contributions and pay them to insurers Members decide according to their health plan where to get care Insurers pay care providers up to the plan coverage and members pay the difference ( copayment ) Isapre (mandatory private health insurance) Closed or preferred provider plans (1) Source: Cruz Blanca Salud, from Superintendencia de Salud (National Health Authority) figures and Fonasa (National Health Fund). Does not include Armed Forces, worker s compensation, medical leave expenditures and voluntary health insurance (2) Fx Rate: Ch$500/US$ Can be the same Closed or preferred provider (outpatient or hospital) Cruz Blanca Salud business areas 25

26 Disclaimer The information contained herein shall not be deemed an indication of the state of the company s business, financial condition, results of operations and/or prospects. The company assumes no responsibility for, or makes any representation or warranty, express or implied, with respect to, the accuracy, adequacy or completeness of the information contained herein. The Company expressly disclaims any liability based on such information, errors therein or omissions therefrom. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all-inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the company. Interested parties can only rely on the result of their own investigation and the representations and warranties made in any definitive agreement that may be executed. Prospective investors who require additional information or have questions regarding the company should direct correspondence to or contact: Joaquín Solís de Ovando (ir@cruzblanca.cl). 26

27 October