Team. Marcelo Bermúdez CFO Cruz Blanca Salud

Transcription

1 MARCH 2012

2 Team Marcelo Bermúdez CFO Cruz Blanca Salud

3 History of growth, profitability and acquisitions Cruz Blanca Salud s strategy is based on diversification and growth Association between Said Group and Linzor Capital Partners Acquisition IPO Acquisition Perú Incorporation Said Group enters the healthcare sector Acquisition Acquisition Acquisition Isapre Acquisition 2007 Acquisition Said Group expands its asset base in the healthcare sector Strategy of joint development in the healthcare sector 3

4 One of Chile s leading healthcare groups #1 provider of private outpatient service 14 outpatient care centers consultation rooms ~ visits Leading hospitals in their regions 3 hospitals 358 beds ~ hospital admissions #2 Chilean Isapre* by revenues beneficiaries policy holders 79 branch offices (*) Isapres are regulated private health insurance institutions 4

5 The Chilean healthcare sector has attractive growth opportunities

6 Chile s healthcare sector Policy holders and their dependents (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 election mode Public provider (outpatient or hospital) Private provider (doctors, outpatient or hospital) Decision of health insurance (public or private) are made by policy holders Policy holders contribute a mandatory 7% of Can be the same their salary and can contribute an additional voluntary amount Employers only collect and pay to the insurers Members decide according to their health plan where to get care Isapre (mandatory private health insurance) Closed or preferred provider plans Closed or preferred provider (outpatient or hospital) Insurers pay care providers up to the plan coverage and members pay the difference ( copayment ) Cruz Blanca Salud business areas (1) Source: Cruz Blanca Salud, from Superintendencia de Salud (National Health Authority) figures and Fonasa. Does not include Armed Forces, worker s compensation, medical leave expenditures and voluntary health insurance (2) Fx Rate: Ch$500/US$ 6

7 Cruz Blanca Salud, one of Chile s healthiest companies

8 Successful business model Commercial Synergies Insurance (Isapre) Hospitals Outpatient Centers To increase volume of sales among our 3 businesses 30% of health plans sold in 2011 were Preferred Provider Plans within our network Diagnostic services with no co-payment for members within our network Our hospitals capture 48% of the spending of our Isapre in the regions where they operate Spending by our Isapre at Integramédica has increased 4% since the acquisition of Integramédica Cost Synergies Providers operate as a network Outpatient Centers Hospitals Economies of scale in purchase of supplies and equipment Savings on administrative expenses and IT Attractive client value-proposition 8

9 Cruz Blanca Salud Successful Initial Public offering on June 23, 2011 Proceeds of US$ 164 million shareholders 44,2% free float Solid financial position: Net Financial Debt / EBITDA of 0,8x Ownership structure (2/03/2012) EV / EBITDA P / E NFD / EBITDA Other shareholders 8,62% Stockbrokera ge houses 15,97% Private pension funds (AFPs) 2,19% Mutual funds 1,53% Insurance companies 0,46% Said Group 40,85% Cruz Blanca Salud (1) 9,5x 17,1x 0,8x Chilean comparables 11,2x 17,5x 1,2x Banmédica 10,5x 16,1x 1,3x Clínica las Condes 12,7x 20,9x 0,3x Indisa 12,6x 18,2x 2,4x Brazilian comparables 12,4x 40,4x 0,1x Securities funds 15,47% Linzor Capital 14,92% Fleury 14,7x 31,8x 0,5x Dasa 10,4x 50,0x 0,0x Amil 13,2x 40,0x - Fx Rate: Ch$500/US$ Total shares: (1) Share price Ch$550 (19/03/2012) (2) Source: Bloomberg and Cruz Blanca Salud 9

10 Consolidated financials 2011 Revenue Breakdown US$ 831 million Hospitals 10% Outpatient 20% 2011 EBITDA Breakdown US$ 83 million Hospitals 20% Health Insurance 70% Health Insurance 40% Summary Balance Sheet US$ million Current assets 102,2 129,5 266,4 Non-current assets 335,9 534,3 593,6 Total Assets 438,1 663,8 860,0 Current liabilities 159,9 171,5 238,4 Non-current liabilities 132,9 307,7 261,9 Equity (Controlling shareholders) 115,2 157,4 331,0 Equity (Minority interest) 30,1 27,2 28,7 Total Liabilities + Shareholder's equity 438,1 663,8 860,0 Outpatient 40% Net financial debt 95,1 231,7 69,5 Fx Rate: Ch$500/US$ 10

11 Consolidated financials Revenues US$ thousand CAGR (09-11) Net Profit US$ thousand CAGR (09-11) EBITDA US$ thousand CAPEX Breakdown 2011 CAGR (09-11) Health Insurance 12% Hospitals 34% Fx Rate: Ch$500/US$ Outpatient 54% 11

12 Integramédica, #1 private outpatient provider Presence in 3 regions of the country where Revenue 56% of the population lives US$ thousand CAGR (07-11) 14 outpatient care centers Chile s largest private clinical laboratory specimen collection points Approximately annual lab tests outpatient consultation rooms EBITDA US$ thousand >1.560 doctors CAGR (07-11) ~ 4,4 million visits in the last year First outpatient institution with outpatient centers accredited by the National Health Authority Fx Rate: Ch$500/US$ 12

13 45,0 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0, ,0 13,0 12,0 11,0 10,0 9,0 8,0 7,0 6,0 5,0 4,0 Integramédica, #1 private outpatient provider Revenues of 4Q 11 amounted to US$ 41 million (Δ + 18%) 3 new MRI s Increase in imaging exams Remodeling of outpatient care centers Δ + trade volume with Isapre Cruz Blanca beneficiaries Δ + trade volume with Fonasa beneficiaries Acquisition of Santiago s premier mammogram diagnostic center Revenue US$ million 34,9 5,2 4,8 9,9 4,2 5,9 14,4 14,9 16,4 4Q'10 41,0 4Q'11 Other Ancillary services Diagnostic exam Medical consultations Monthly revenue per consultation room Lower comparison base as result of 2010 earthquake New outpatient center Puente Alto 12,1 12,9 EBITDA of 4Q 11 reached US$ 6 million (Δ - 3%) Increase in S&A Opening of Puente Alto medical center 4Q'10 4Q'11 Consultation room (Avg) Monthly revenue per average consultation room (US$ th) 4Q 10 higher comparison base due to insurance claims payment for 2010 earthquake Fx Rate: Ch$500/US$ 13

14 Leading Hospitals in their geographic areas Presence in 3 regions of the country Revenues sq. ft. built 358 beds, of which 80 are critical-care 81 consultation rooms US$ thousand CAGR (07-11) recent consultation rooms (Marina Arauco Boulevard) More than imaging and lab tests EBITDA US$ thousand CAGR (07-11) Fx Rate: Ch$500/US$ 14

15 ,0 22,0 20,0 18,0 16,0 14,0 12,0 10,0 8,0 6,0 Leading Hospitals in their geographic areas Revenues in 4Q 11 reached US$ 24 million Monthly revenue per bed (Δ + 4%) 21,5 21,6 Δ + surgeries (+3%) Sales mix with higher average prices Δ + critical beds (+11%) 4Q'10 4Q'11 4Q 11 EBITDA amounted US$ 3 million (Δ - 11%) Δ + revenues Fixed costs related to Clínica Reñaca s new # Critical beds (Avg) # Normal beds (Avg) Monthly revenue per bed (US$ th) Revenue distribution 4Q 11 by hospital outpatient clinic which has not yet reached its maturity level (although it has improve its Clínica Reñaca Clínica Antofagasta activity) 45% Slightly increase in accruals receivables 46% 10% Clínica San José Fx Rate: Ch$500/US$ 15

16 Isapre Cruz Blanca, #2 by revenues Since the creation of the private health system (1981) 79 branch offices (nationwide coverage) > policy holders and > members #2 in revenues in the Isapre market % market share by revenues 28,3 21,3 20,4 17,1 12,9 Strength of brand in spite of absence of Cruz Blanca name for 7 years Regulatory framework undergoing revision Changes likely to provide increased certainty on business regulation Source: Asociación de Isapres, December 2011 figures Revenues US$ thousand CAGR (07-11) EBITDA US$ thousand Fx Rate: Ch$500/US$

17 ,0% 110,0% 100,0% 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 500,0 450,0 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Isapre Cruz Blanca, #2 by revenues Revenues in 4Q 11 reached US$ 158 million Monthly revenue per policy holder (Δ + 9%) Δ + number of policy holders (+7% / 4Q 11-4Q 10 period) Greater retention , ,5 150, ,3 175,3 New beneficiaries Increase in health plans prices (3,9% increase in 2010 and 6,9% in 2011) Revenues per average policy holders (US$) Policy holders (Avg) EBITDA 4Q 11 reached US$ 7 million Δ + claims Claims rate % Seasonal effect 87,7% 83,8% 84,2% Fx Rate: Ch$500/US$ Source: Cruz Blanca Salud 17

18 Investment Plan

19 Investment Plan: strategic guidelines Grow in the provider business Main driver: outpatient business Increase profitability of current facilities and expand capacity Increase synergies among our businesses Expand offering of health plans to market segments enrolled in the public insurer system With organic growth we would double our EBITDA in 5 years Outpatient visits from to over 7,000,000 Lab tests from to over Inpatient days from to over Policy holders from to over

20 Investment Plan: next 3 years Projected Capex: US$ 100 million Hospitals Integramédica 10 new outpatient care centers in 3 years 1 center already under construction in Santiago 1 center recently open (November) Expansion of capacity and renewal of equipment at existing facilities Capacity expansion Clínica Reñaca Master Plan (60%) Capacity expansion Clínica Antofagasta (30%) Capacity expansion Clínica San José (10%) 54 new beds Improvement of facilities and medical equipment Isapre Investment in better technologies and optimization of branch offices network Inorganic Growth and Development of New Businesses Analysis of growth opportunities through M&A (recently P. Gazmuri, Biolab and Clínica Santa Lucía) Development of greenfield projects 20

21 Investment Plan: Integramédica In Santiago Puente Alto Opened Santiago Ñuñoa Contract Contract Maipú S. Bernardo Under construction Contract La Florida Contract Outside Santiago Concepción Contract Talca Contract Valparaíso Temuco New Centers

22 Investment Plan: Integramédica Maipú outpatient care center 22

23 Investment Plan: Clínica Reñaca Master plan ~ US$ 21 million Remodeling and expansion of the Hospital Operating room remodeling Increase of parking space Additional sq. ft. 28 new beds by the beginning of 2013 (with the capability of an additional 54 beds) Medical equipment ~ US$ 2 million

24 Investment Plan: recent developments New Hospital in Santiago* Selection of property Total estimated investment of US$ 102 million in 3/4 years Initial capacity of 200 beds (up to 400 beds) Perú We recently initiated activities in Perú: Hiring of Peruvian manager André Borit (former Banmédica Perú) Incorporation of the subsidiary Cruz Blanca Salud Perú S.A.C. Acquisition of Resomasa (imaging) Analysis of prospects in the outpatient, inpatient and insurance businesses * This investment is subject to the fulfillment of several conditions (e.g. purchase of property, administrative approvals of the project, etc.) 24

25 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). 25

26 MARCH 2012