RESULTS RELEASE FOR THIRD QUARTER 2017 EMPRESAS BANMEDICA S.A.

Transcription

1 RESULTS RELEASE FOR THIRD QUARTER 2017 EMPRESAS BANMEDICA S.A. Santiago, Chile November 22, 2017 Empresas Banmédica S.A. ( Banmédica o the Company ) (BCS: BANMEDICA ), the most comprehensive healthcare company in Chile and one of the most relevant in Latin America, announced consolidated financial results for the third quarter ended September 30, All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in Chilean pesos (Ch$). All variation comparisons refer to the same period of the previous year, unless otherwise indicated. Consolidated revenues for 3Q2017 reached Ch$392,300 million, increasing 7.9% vs. 3Q2016: (i) 7.4% increase in Chile (ii) 7.6% in Colombia; and (iii) 8.1% in Perú. Gross Income amounted to Ch$78,941million, an increase of 5.3% due mainly to an increase in revenues and a decrease in the loss ratio of the insurance business in Chile and Colombia. SG&A expenses increased 12.9% reaching Ch$ 57,151 million mainly due to higher expenses related to the start up of hospitals expansions and increase in bad debt expense. Consolidated EBITDA reached Ch$ 30,972 million, decreasing 7.0%. EBITDA margin reached 7.9% compared to 9.2% the prior year. On September 28, Pacífico EPS successfully achieved a bond issuance in the Peruvian market for 130 million nuevos soles. The results reported in the quarter were lower than expected, however the accumulated results for year are superior to 2016.The health providers segment in Chile continued the decrease in activity, nevertheless, we continue focusing efforts in consolidating an integral health offering for our clients. In Colombia and Peru we continue showing strong growth in results due to more affiliates in the insurance business and and increase in activity in the provider area. As I mentioned before, we continue consolidating our product offerings and optimizing cost structures in Chile, Colombia and Perú to continue as one of the most relevant healthcare companies in Latin America. Alejandro Danús, Empresas Banmédica s CEO. 1

2 FINANCIAL ANALYSIS THIRD QUARTER 2017 Consolidated Operating Results Consolidated revenues for the quarter totaled Ch$ 392,300 million, reflecting an increase of 7.9% with vs one year ago and principally explained by: (i) an increase of 2.9% in the number of beneficiaries and an increase of 5.9% in the average premium in the health insurance segment in Chile; (ii) higher average premium for Prepaid Medicine along with growth in affiliates in both POS and Prepaid Medicine for the health insurance segment in Colombia; (iii) a 3.1% increase in beneficiaries for the health insurance segment in Peru and (iv) an increase in the number of hospitalized patients and exams in healthcare providers business in Peru. Total consolidated costs amounted to Ch$313,359 million, reflecting an increase of 8.6% and mainly explained by higher medical expense in the Chile, Colombia and Perú health insurance businesses and which is principally related to the increase in beneficiaries. In the healthcare providers business in both Chile and Perú, costs grew driven by higher medical salaries as well as higher materials and supplies costs. SG&A expenses reached Ch$57,151 million with an increase of 12.9% mainly explained by higher expenses in Chile related to the start-up of: (i) the new H and I buildings at Clínica Dávila hospital, (ii) the expansion at Clínica Vespucio hospital, and (iii) the new Vidaintegra outpatient medical center in the Ñuñoa location of the city of Santiago. As a result, consolidated operating income for the quarter totaled Ch$21,790 million and consolidated EBITDA decrerased 7.0%, reaching Ch$30,972 million with an EBITDA margin of 7.9% compared to 9.2% the prior year. Consolidated Revenues 3Q2017 Other 1% Colombia 12% Consolidated EBITDA 3Q2017 Colombia 17% Other 1% Perú 18% Chile 69% Perú 25% Chile 57% 2

3 CHILE Chile: Health Insurance This business unit in Chile considers 2 private health insurance companies (Banmédica and Vida Tres), representing approximately 857,000 beneficiaries.during 3Q2017, this segment represented 43% of consolidated revenues and 4.6% of consolidated EBITDA. Revenues for the health insurance business area in Chile reached Ch$167,670 million, reflecting an increase of 6.9%. This incresse in principally explained by an increase of 3.9% in the average premium, the customer base rotation and an increase of 2.9% in the beneficiary base. Operating costs for the business unit grew similar to thee growth in revenues, increasing 6.9% and reaching Ch$ million, mainly due to a decrease of 0.1 percentage points (p.p.) in medical loss and medical leave expense ratio. SG&A expenses reched Ch$16,253 million, reflecting an increase of 10.0% mainly explained by an increase in commercial and administrative salaries. Consequently, the Operating Result was Ch$966 million, a slight decrease compared to the same period of 2016, while EBITDA reached Ch$1,426 million, with a decrease of 19.1% during the quarter. The EBITDA margin reached 0.9% compared to 1.1%. Chile: Healthcare Providers This business unit considers 5 hospitals (Santa María, Dávila, Ciudad del Mar, Vespucio and Bio Bío hospitals), 1 outpatient centers network (Vidaintegra) and 2 medical recue services (Help y Home Medical Clinic). During 3Q2017, this segment represented 36% of consolidated revenues and 45.6% of consolidated EBITDA. Total revenues for the healthcare provider business unit in Chile amounted to Ch$139,897 million (Ch$112,486 million for hospitals and Ch$27,411 million for outpatient services and rescue services), increasing 7.7%. This increase is mainly explained by growth in medical consultations, partly offset by a decrease in hospitalized patients and in imaging exams. It is worth mentioning that since the beginning of 2017, the industry has seen a decrease in the inpatient and outpatient services. Operating costs for the business unit grew 8.9%, reaching Ch$106,150 million in the quarter (Ch$85,716 million for hospitals and Ch$20,434 million for outpatient services and rescue services), principally driven by an increase in salaries for medical support personnel, medical fees and medical supplies. SG&A expenses totaled Ch$26,050 million (Ch$20,597 million for hospitals and Ch$5,453 million for outpatient services and rescue services), reflecting an increase of 35% and is explained by higher expenses related to the startup of the expansions of (i) the new H and I buildings of Clínica Dávila hospital, (ii) Clínica Vespucio hospital, and (iii) the new Vidaintegra outpatient medical center in the Ñuñoa location of the city of Santiago. Consequently, operating income amounted to Ch$7,697 million (Ch$6,173 million for hospitals and Ch$1,524 million for outpatient services and rescue services), decreasing 41.3%. EBITDA for the business unit decreased 23.7% and reached Ch$14,132 million (Ch$11,404 million for hospitals and Ch$2,728 million for outpatient services and rescue services) during the quarter, with an EBITDA margin of 10.1% compared to 14.3%. 3

4 Chile Hospitals Occupancy Rates Santa María Hospital Dávila Hospital Vespucio Hospital Other Hospitals 74,8% 77,4% 75,6% 80,4% 70,0% 69,6% 66,4% 67,0% 3Q2017 3Q2016 4

5 COLOMBIA Colombia: Health Insurance This business unit in Colombia considers 2 health insurance companies (Colmédica and Aliansalud), representing appoximately 440,000 beneficiaries. During 3Q2017, this segment represented 13.1% of consolidated revenues and 16.7% of consolidated EBITDA. Revenues for the health insurance business unit in Colombia reached Ch$51,321 million in 3Q2017, with an increase of 7.6%. This increase is principally explained by higher average premiums of Prepaid Medicine along with grwoth in affiliates in both POS and Prepaid Medicine. Operating costs for the business unit grew by 9.2%, reaching Ch$39,215 million, mainly driven by the mentioned increase in beneficiaries both in POS and Prepaid Medicine. Despite the higher level of beneficiaries, medical loss ratio declined by 1.1 p.p. SG&A expenses reached Ch$7,448 million, increasing 3.4% mainly explained by commercial expenses, salaries and IT. Consequently, operanting income amounted to Ch$4,658 million, growing 2.3%. EBITDA for the business grew 4.3% and reached Ch$5,180 million during the quarter, with an EBITDA margin of 10.1% compared to 10.4%. Colombia: Healthcare Providers This business unit considers 2 hospitals (Del Country and La Colina). In accordance with IFRS, Empresas Banmédica does not consolidate results for this operations since it holds a 42.3% stake of the mentioned hospitals. Results for this business unit are recognized as Equity in Income of Associotes and non-consolidated Subsidiaries at the non-operating level in the consolidated results. These operating results are analyzed for reference only. Total revenues for the healthcare providers business unit in Colombia remained stable compared to the previous year and amounted to Ch$20,053 million. The increased in inpatient and outpatient services at Clínica La Colina hospital was compensated by a slight decrease in hospital services at Clínica del Country hospital. Operating costs for the business unit declined 1.5%, reaching Ch$13,316 million in the quarter, and impacted by the exchange rate variation which offset local currency cost increases mainly in medical fees and medical supplies expenses. SG&A expenses of Colombian healthcare providers totaled Ch$3,618 million, reflecting an slight decrease of 0.7% impacted by the exchange rate variation whitch offset local currency SG&A mainly explained by higher general expenses given the additional beds from the expansión of Clínica del Country hospital. Consequently, operating income amounted to Ch$3,119 million reflecting a 4.8% increase. EBITDA for the business unit grew 7.3% and reached Ch$3,968 million during the quarter, with an EBITDA margin of 19.8% compared to 18.4%. Colombia Hospital Occupancy Rate 78,9% 80,2% 3T2017 3T2016 5

6 PERÚ Perú: Health Insurance This business unit in Perú considers 2 health insurance companies (Pacífico EPS and Pacífico AMED), representing approximately 857,000 and 340,000 beneficiaries, respectively. AMED corresponds to health insurance under Pacífico Seguros Generales and consolidates its results before taxes. During 3Q2017, this segment represented 11.9% of consolidated revenues and 4.8% of consolidated EBITDA. Revenues for the health insurance business unit in Perú reached Ch$46,691 million in 3Q2017, reflecting an increase of 4.9%. This increase is principally explained by grouwth of 3.1% in beneficiaries of Pacífico EPS. Operating costs for the business unit grew slightly by 3.3%, reaching Ch$41,384 million, driven by growth in beneficiaries. Despite the higher level of beneficiaries, medical loss ratio declined by 1.4 p.p. SG&A expenses reached Ch$4,181 million, reflecting an increase of 13.3% mainly due to increased salaries. Consequently, operating income amounted to Ch$1,126 million, growing by 51.8%. EBITDA for the business unit also reflected an increase of 43.6% and reached Ch$1,489 million during the quarter, with an EBITDA margin of 3.2% compared to 2.3%. Perú: Healthcare Providers This business unit considers 6 hospitals (San Felipe and Sanna network hospitals) and 6 outpatient centers (Laboratorio ROE, Sanna Medical Center, Aliada, Prosemedic, Coa and Precisa). During 3Q2017, this segment represented 10.8% of consolidated revenues and 22.1% of consolidated EBITDA. Total revenues for the healthcare providers business unit in Perú amounted to Ch$42,390 million, increasing 10.4%. This increase is mainly explained by growth for inpatient services from higher hospitalized patients, laboratory axams and images, as well as outpatient services growth due to increased oncology sessions and lab exams. Operating costs for the business unit grew 13.4%, reaching Ch$31,640 million in the quarter, principally driven by an increase in medical fees, medical supplies expenses and service costs. SG&A expenses of Peruvian healthcare providers totaled Ch$5,020 million, reflecting a drop of 16.1% and is mainly explained by lower general expenses. Consequently, operating income amounted to Ch$5,731 million, growing 26.9%. EBITDA for the business unit grew 21.3% and reached Ch$6,852 million during the quarter, with an EBITDA margin of 16.2% compared to 14.7%. Perú Hospital Occupancy Rate 64,4% 67,1% 3T2017 3T2016 6

7 Consolidated Non-Operating Result During 3Q2017 consolidated non-operating result amounted to a loss of Ch$4,488 million, which compares with the loss of Ch$4,949 million the prior year and is principally explained by (i) lower exchange rate loss of Ch$1,625 million in 3Q2017 compared with Ch$1,796 million in 3Q2016, and (ii) an increase in financial expenses, which amounted to Ch$5,003 million, due to a 14.15% higher financial debt level vs. december 2016, resulting from the bond issuance in January The aforementioned items were partially offset by a decrease of 19.8% in financial income, which amounted to Ch$2,049 million, and is explained mainly by a decrease average cash and equivalents of 5% compared to december 2016 levels. Consolidated taxes for the quarter amounted to Ch$7,359 million, with a 2.4% increase in the effective rate, due to a higher contribution of the operations in Colombia and Perú, where the tax rate is higher than Chile. Consolidated Net Results Consolidated net income for the quarter decreased by 28.9%, reaching Ch$7,107 million, mainly driven by higher operating results previously explained, but which were offset by lower non-operating results and higher taxes. Net income per share amounted to Ch$8.8 per share, with no variation in the number of shares outstanding. Other News On September 8, 2017, the company issued an essential event due to potential acquisition of shares of Banmédica SA, the transaction is subject to a series of conditions to be binding, among others, the performance of a due diligence by the interested party. As of the date of issuance of these financial statements, this process is still under development. On November 15, 2017, in the extraordinary session of the board of directors, the Company issued an essential fact that relates to the shares of Banmédica SA, which the majority shareholders of the Company, Inversiones Santa Valeria Limitada and Empresas Penta SA, have reported that have agreed with Unitedhealth Group Incorporated ("UHG") to extend the exclusivity period of the negotiation for the benefit of UHG contained in the non-binding agreement signed on August 16, 2017, until December 31,

8 FINANCIAL ANALYSIS ACCUMULATED AS 30 OF SEPTEMBER, 2017 Operating Results Consolidated revenues for the first 9 months of the year totaled Ch$1,141,300 million, representing an increase of 8.7% with respect to the prior year, mainly due to: (i) an increase of 2.9% in total beneficiaries along with 5.9% in average premiums for health insurance in Chile; (ii) higher average premiums for Prepaid Medicine and higher affiliates both in POS and Prepaid Medicine for health insurance in Colombia; (iii) 3.1% higher beneficiaries for health insurance in Perú, and (iv) higher hospitalized patients and lab exams in the healthcare providers business in Perú. Consolidated operating costs for the period reached Ch$890,886 million and increased 8.1% which is mainly explained by higher medical expenses for the health insurance business in Chile, Colombia and Perú mainly due to increased beneficiaries. In the healthcare providers business in Chile and Perú costs grew from increased medical fees and medical supplies expenses. Consolidated SG&A expenses for the period were Ch$163,494 million with an increase of 13.3% and mainly related to the start-up in Chile of: (i) the new H and I buildings of Clínica Dávila hospital, (ii) Clínica Vespucio hospital, and (iii) the new Vidaintegra medical center in the Ñuñoa location of the city of Santiago, as well as increased salaries in Perú. As a result, consolidated operating income amounted to Ch$86,920 million, while consolidated EBITDA for the period reached Ch$112,849 million, reflecting a 6.5% increase and an EBITDA margin of 9.9% compared to 10.1%. Non-operating Results During the first 9 month of 2017, consolidated non-operating result amounted to a loss of Ch$9,309 million, which compares favorably with the loss of Ch$11,890 million the prior year. The improvement is principally explained by (i) a noncash exchange rate gain of Ch$752 million compared with a loss of Ch$3.270 million in 2016, and (ii) an increase in financial income which totaled Ch$8.534 million, mainly due to a higher average cash position. These improvements were partially offset by an increase of 20.6% in financial expenses, which amounted to Ch$14,549 million, mainly explained by the increase in average financial debt of 14.15% as compared to december 2016, resulting from the bond issuance in january Consolidated taxes for the period amounted to Ch$26,368 million, with an increase of 13.7% respect to the same previous period. Consolidated Net Results Consolidated net income for the first 9 months increased by 6%, reaching Ch$41,902 million, mainly driven by higher operating results previously explained, as well as improved non-operating results and higher minority interest income from better results in the Colombia operations, which were partly compensated by increased taxes. Net income per share amounted to Ch$

9 Financial Indicators Millions of Ch$ 3Q17 2Q17 1Q17 4Q16 3Q16 Capital Expenditures 35,763 19,740 24,897 23,147 17,111 Cash and Equivalents 54,663 63, , ,036 62,424 Total Financial Debt 440, , , , ,338 -Financial Debt short term 50,134 45,705 92, ,673 51,276 -Financial Debt long term 389, , , , ,062 Ratios (times) Liquidity 1.07 X 1.07 X 1.00 X 0.79 X 0.87 X Indebtness 1.20 X 1.12 X 1.12 X 1.08 X 0.93 X Covenant Indebtness < 2.03 X < 2.03 X < 2.02 X < 2.02 X < 2.01 X Financial expense coverage 7.94 X 8.43 X 8.71 X 8.73 X 8.69 X Covenant financial expense coverage > 3.21 X > 3.21 X > 3.21 X > 3.21 X > 3.21 X Local Risk Ratings - Fitch Ratings AA- (stable outlook) - Feller AA- (stable outlook) Liquidity = EBITDA LTM/Total Financial Debt Indebtness = Total Financial Debt / Shareholders Equity Financial expense coverage = EBITDA LTM/Financial expense 9

10 CAPEX as of September 2017 Insurance Chile Insurance 1% Colombia 6% Providers Perú 33% Providers Chile 60% Capital Expenditures As of September 30, 2017, consolidated capital expenditures reached Ch$80,400 million, equivalent to 3.52 times depreciation. Investments for the period included inchile: Vespucio Hospital (Ch$16,543 million), Santa María Hospital (Ch$13,361 million), Dávila Hospital (Ch$8,888 million), Ciudad del Mar Hospital (Ch$5,212 million), Vidaintegra medical center (Ch$3,302 million) and insurance Chile (Ch$667 million); in Colombia: Colmédica (Ch$ 4,516 million); and the healthcare providers business in Perú (Ch$26,054 million). Empresas Banmédica Empresas Banmédica is the most comprehensive healthcare company in Chile and one of the most relevant in Latin America, with the most modern hospitals, specialized testing laboratories, outpatient centers with the latest technology, health insurance companies and medical rescue units in Chile, Colombia and Perú. With almost 30 years of experience in Chile, over 20 years in Colombia and 10 years in Perú, Banmédica holds a leadership position in the markets where it operates, serving over 2 million beneficiaries and operating 13 hospitals and almost 2,000 beds in the 3 countries. Banmédica s strategy is focused on consolidating its operations in Chile, improving productivity through innovation as a central pillar; and expanding the Colombia and Perú operations through organic growth from the favorable perspectives of the healthcare sector in Latin America. For more information, visit Note on Forward-Looking Statements Statements contained in this release relating to the business outlook of the Company, projections of operating or financial results, the growth potential of the Company and the market and macroeconomic estimates are mere forecasts and are based on the expectations of Management in relation to the Company s future. These expectations are highly dependent on changes in the market, Latin America s general economic performance particularly that of countries where we have operations, the industry and international markets and are thus subject to change. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise. Investors are encouraged to read risk factors included in the Annual Report, available on the Company s corporate website: 10

11 GLOSSARY Isapre (Institución de Salud Previsional): Private Health Insurance Company. FONASA (Fondo Nacional de Salud, Chile): Public health insurance entity. GES (Garantías Explícitas en Salud, Chile): Group of legally guaranteed benefits for affiliates of Fonasa and Isapres for certain health problems. EPS (Entidad Prestadora de Salud, Perú): Health insurance company. AMED (Asistencia Médica Perú): Suplementary private health insurance. Medicina Prepagada (Colombia): Suplementary private health insurance. POS (Plan Obligatorio de Salud, Colombia): Mandatory Health program. Beneficiary: person who is eligible to receive health insurance benefits, such as dependents included in affiliate s plan (children, spouse, other). Affiliate or Enrollee: policy-holder of health insurance plan. Average premium: Total premium received divided by the number of beneficiaries for the period. Medical leave expense or SIL (Subsidy for work-disability, Chile): Employed healthinsurance affiliates can make use of medical leave from work due to partial or total work disability. Based on certain requirements, affiliates may be eligible for SIL, which replaces affiliate s remuneration (Chile). Medical loss ratio: Percentage of health costs divided by corresponding revenues. Medical leave expense ratio: Percentage of medical leave expense or subsidy divided by corresponding revenues. Inpatient/Outpatient services: Patient service provided for diagnostics, therapy, or surgery, implying the use of equipment, instruments, installations and specialized professionals. Occupancy rate or Average occupancy: Percentage of used bed days divided by available beds days. Outpatient medical center: centers for medical services that do not require overnight stay. Emergency mobile rescue service (Help, Chile): Rescue service provided by ambulance or telephone assistance. Examination room: Physical space for medical consultation or exams. EBITDA: Operating results plus depreciation. For more information, please contac: Javier Eguiguren Tomás Robinson Chief Financial Officer Deputy Finance Manager +(56) (56) jeguiguren@banmedica.cl trobinson@banmedica.cl 11

12 CONSOLIDATED RESULTS Ch$ Million 3Q17 3Q16 A/A (%) Beneficiaries (eop) 2,155,749 2,099, % Ocupancy rate (%) 74.8% 76.4% -1.6 p.p. Revenues 392, , % (Cost of sales) (313,359) (288,553) 8.6% Gross Profit 78,941 75, % Gross Margin (%) 20.1% 20.6% (SG&A + Others) (57,151) (50,623) 12.9% Operating Results 21,790 24, % EBITDA (1) 30,972 33, % EBITDA margin (%) 7.9% 9.2% Non-Operating: -Financial income 2,049 2, % -Financial (expense) (5,003) (4,521) 10.7% -Exchange rate difference (1,625) (1,796) -9.5% -Other non-operating 91 (1,187) % Profit before taxes & min. interest 17,302 19, % -Income tax (7,359) (7,187) 2.4% -Minoritary interest (2,836) (2,252) Net profit (loss) 7,107 9, % Earnings per share (Ch$/share) % Accumulated 2017 Accumulated 2016 A/A (%) Beneficiaries (eop) 2,155,749 2,099, % Occupancy rate (%) 73.8% 74.7% -0.9 p.p. Revenues 1,141,300 1,049, % (Cost of Sales) (890,886) (823,978) 8.1% Gross Profit 250, , % Gross Margin (%) 21.9% 21.5% (SG&A + Others) (163,494) (144,262) 13.3% Operating Results 86,920 81, % EBITDA (1) 112, , % EBITDA margin (%) 9.9% 10.1% Non- Operating: -Financial Income 8,534 7, % -Financial (expense) (14,549) (12,062) 20.6% -Exchange rate difference (752) (3,270) -77.0% -Others non-operating (2,542) (3,802) -33.1% Profit before taxes $ min. interest 77,611 69, % -Income tax (26,368) (23,201) 13.7% -Minoritary interest (9,341) (6,982) Net profit (loss) 41,902 39,467 6% Earnings per share (Ch$/share) % (1)EBITDA= Operanting result + depreciation + amortization. 12

13 OPERATING RESULTS BY COUNTRY THIRD QUARTER (Ch$ million) Chile Colombia Perú Figures exclude consolidation 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 adjustments Average exchange rate US$ % 2, , % % Beneficiaries (eop) 857, , % 439, , % 857, , % Occupancy rate (%) 76.2% 79.7% -3.5 p.p. 77.2% 76.8% 0.5 p.p. 67.6% 65.9% 1.7 p.p. Revenues 309, , % 51,321 47, % 76,459 70, % (Cost of Sales) (257,434) (239,003) 7.7% (39,215) (35,918) 9.2% (60,401) (55,759) 8.3% Gross Profit 52,560 49, % 12,106 11, % 16,058 14, % Gross Margin (%) 17.0% 17.2% 23.6% 24.7% 21.0% 21.2% (SG&A + Others) (43,779) (35.882) 22.0% (6,780) (6,687) 1.4% (8,284) (9,465) -12.5% Operating Results 8,781 13, % 5,326 5, % 7,774 5, % EBITDA (1) 15,854 19, % 5,849 5, % 9,408 8, % EBITDA margin (%) 5.1% 6.9% 11.4% 11.5% 12.3% 11.9% Results by Business Area Figures exclude consolidation adjustments Chile Colombia Perú Health Insurance 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 Beneficiaries (eop) 857, , % 439, , % 857, , % Average Premium* (Th Ch$) % % % Revenues 167, , % 51,321 47, % 46,691 44, % (Cost of Sales) (150,451) (140,721) 6.9% (39,215) (35,918) 9.2% (41,384) (40,072) 3.3% Gross Profit 17,219 16, % 12,106 11, % 5,307 4, % Gross margin (%) 10.3% 10.3% 23.6% 24.7% 11.4% 10.0% (SG&A + Others) (16,253) (14,782) 10.0% (7,448) (7,203) 3.4% (4,181) (3,691) 13.3% Operating Results 966 1, % 4,658 4, % 1, % EBITDA (1) 1,426 1, % 5,180 4, % 1,489 1, % EBITDA margin (%) 0.9% 1.1% 10.1% 10.4% 3.2% 2.3% Chile Colombia (**) Perú Healthcare Providers 3Q17 3Q16 3Q17 3Q16 3Q17 3Q16 Occupancy rate (%) 76.2% 79.7% -3.5 p.p. 77.2% 76.8% 0.5 p.p. 67.6% 65.9% 1.7 p.p. Beds (eop) 1,134 1, Outpatient services 1,156,903 1,176, % 7,041 6, % 258, , % Revenues 139, , % 20,053 20, % 42,390 38, % (Cost of Sales) (106,150) (97,505) 8.9% (13,316) (13,517) -1.5% (31,640) (27,902) 13.4% Gross Profit 33,747 32, % 6,737 6, % 10,751 10, % Gross Margin (%) 24.1% 24.9% 33.6% 32.9% 25.4% 27.3% (SG&A + Others) (26,050) (19,292) 35.0% (3,618) (3,644) -0.7% (5,020) (5,980) -16.1% Operating Results 7,697 13, % 3,119 2, % 5,731 4, % EBITDA (1) 14,132 18, % 3,968 3, % 6,852 5, % EBITDA margin (%) 10.1% 14.3% 19.8% 18.4% 16.2% 14.7% (1) EBITDA= Operanting result + depreciation + amortization. ( *) Average monthly Premium for the period. (**) Results for Healthcare Providers in Colombia do not consolidate. 13

14 OPERATING RESULTS BY COUNTRY ACCUMULATED AS OF SEPTEMBER (Ch$ million) Chile Colombia Perú Acum. Acum. Acum. Acum. Acum. Acum. Figures exclude consolidation adjustments Average exchange rate US$ % 2, , % % Beneficiaries (eop) 857, , % 439, , % 857, , % Occupancy rate (%) 73.6% 76.6% -3.0 p.p. 80.2% 78.9% 1.3 p.p. 67.1% 64.4% 2.7 p.p. Revenues 890, , % 156, , % 222, , % (Cost of Sales) (724,687) (678,241) 6.8% (114,952) (102,724) 11.9% (174,195) (163,842) 6.3% Gross Profit 165, , % 41,403 36, % 48,384 44, % Gross Margin (%) 18.6% 18.1% 26.5% 26.1% 21.7% 21.2% (SG&A + Others) (120,983) (101,478) 19.2% (21,988) (19,508) 12.7% (25,205) (27,149) -7.2% Operating Results 44,608 48, % 19,415 16, % 23,179 16, % EBITDA (1) 64,196 65, % 20,923 17, % 28,012 22, % EBITDA margin (%) 7.2% 8.0% 13.4% 12.8% 12.6% 10.8% Results by Business Area Figures exclude consolidation adjustments Chile Colombia Perú Health Insurance Acum. Acum. Acum. Acum. Acum. Acum Beneficiaries (eop) 857, , % 439, , % 857, , % Average Premium* (Th Ch$) % % % Revenues 493, , % 156, , % 139, , % (Cost of Sales) (421,076) (396,891) 6.1% (114,952) (102,724) 11.9% (122,208) (118,357) 3.3% Gross Profit 72,882 57, % 41,403 36, % 17,228 13, % Gross Margin (%) 14.8% 12.6% 26.5% 26.1% 12.4% 10.4% (SG&A + Others) (47,522) (42,339) 12.2% (23,886) (21,148) 12.9% (12,245) (11,498) 6.5% Operating Results 25,360 14, % 17,517 15, % 4,983 2, % EBITDA (1) 26,747 16, % 19,024 16, % 5,976 3, % EBITDA margin (%) 5.4% 3.6% 12.2% 11.7% 4.3% 2.3% Chile Colombia (**) Perú Healthcare Providers Acum. Acum. Acum. Acum. Acum. Acum Ocupancy rate (%) 73.6% 76.6% -3.0 p.p. 80.2% 78.9% 1.3 p.p. 67.1% 64.4% 2.7 p.p. Beds (eop) 1,134 1, Outpatient services 3,313,845 3,370, % 20,523 19, % 733, , % Revenues 389, , % 60,939 59, % 123, , % (Cost of Sales) (301,192) (279,053) 7.9% (40,130) (39,189) 2.4% (92,537) (82,532) 12.1% Gross Profit 88,328 88, % 20,808 19, % 31,156 30, % Gross Margin (%) 22.7% 24.1% 34.1% 33.6% 25.2% 26.9% (SG&A + Others) (67,999) (53,744) 26.5% (11,364) (10,621) 7.0% (15,456) (17,831) -13.3% Operating Results 20,329 35, % 9,445 9, % 15,700 12, % EBITDA (1) 38,081 51, % 12,096 11, % 19,082 15, % EBITDA margin (%) 9.8% 13.9% 19.8% 19.2% 15.4% 13.8% (1) EBITDA= Operanting result + depreciation + amortizations. ( *) Average monthly Premium for the period. (**) Results for Healthcare Providers in Colombia do not consolidate. 14

15 KEY INDICATORS (Thousands of Ch$) Chile Colombia Perú HEALTH INSURANCE Beneficiaries (eop) 857, , % 439, , % 857, , % -Revenues ($)/beneficiaries (1) % % % -Medical loss ratio (%) 68.94% 70.77% -1.8 p.p % 72.65% -1.2 p.p % 89.65% 2.0 p.p. -Sick leave ratio (%) 16.31% 16.64% -0.3 p.p. Chile Colombia Perú HEALTHCARE PROVIDERS Beds (eop) 1,134 1, % % % -Hospital occupancy rate 73.6% 76.6% -3.0 p.p. 80.2% 78.9% 1.3 p.p. 67.1% 64.4% 2.7 p.p. -Revenues ($) / beds (1) 454, , % 185, , % 412, , % Outpatient services (1) 4,444,826 4,503, % 26,386 26, % 975, , % (1) Based on last twelve-month figures 15

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