Deutsche Bank Conference

Transcription

1 Deutsche Bank Conference May-13 Privado y Confidencial 1

2 Ownership and stock price Estrictamente Privado y Confidencial Ownership structure (Dec-12) May 5 th 2013 Mutual Funds & other institutional 6.1% Internationals 12.4% Stockbrokers 14.5% CChC 67.0% Market Cap (MMUS$) 1,926 Stock price (Ch$) 9,100 Net Income 2012 (Ch$ MM) 83,031 P/E P/BV 2.13 Evolution of the stock price 40% 32% 28.9% 24% 16% 8% 0% -8% 30.1% performance difference as of May 5th, % jul-12 ago-12 sep-12 oct-12 nov-12 dic-12 ene-13 feb-13 mar-13 abr % ILC IPSA Privado y Confidencial ILC Page 2 2

3 Company overview December, 2012 Revenues Net Income Ownership Retirement Sector Pension funds administration (AFP) US$253 mm US$ 155 mm 67.5% Healthcare and life Insurance Sector Health insurance institution (ISAPRE) Hospital healthcare services Outpatient healthcare services Suplemental helath insurance US$ 574 mm US$ 341 mm US$ 205 mm US$ 21 mm US$ 5 mm US$ 46 mm 99.9% 89.9% 99.9% Other Business Network of nine private schools and ojne subsidized private school IT and outsourcing services US$ 38 mm US$ 4 mm 99.9% 32.9% Exchange rate: CLP 479,96 per 1USD Privado y Confidencial ILC Page 3 3

4 Solid macroeconomic fundamentals ILC s industries have benefited from Chile s sustained economic growth Salary base and GDP growth (%, real terms) 20,0% Salary base (real) GDP (real) 15,0% 10,0% AVG: 6% 5,0% AVG: 5% 0,0% (5,0)% Source: SAFP and Central Bank; Note: Salary base = number of AFP contributors x average salary. Growth calculated based on the average salary base for the year Privado y Confidencial ILC Page 4 4

5 Revenues come from Estrictamente Privado y Confidencial $ Pension Fund Health insurance Healthcare 10% 1.27% Commission fee Voluntary savings Mandatory 7% Additional health contribution Taxes: Range 0% - 40% Voluntary Gross Salary Supplemental health insurance Net Salary Gross Salary Habitat average: Ch$ 578,907 (US$ 1,206) Chile average: Ch$ 547,553 (US$ 1,141) Source: Superintendencia AFP, as of Dec-12; exchange rate $ Privado y Confidencial ILC Page 5 5

6 Our Business Privado y Confidencial 6

7 Habitat Income Statement (Th.US$) Dec 12 Dec 11 Var. % Revenues Cost of sales 252, ,533-6,0% - Gross Profit 252, , % SG&A (94,754) (83,523) 13.4% Operating Income 158, , % Gain (loss) of the encaje 27,213 (3,846) N/A EBITDAE* 180, , % Net Income 155, , % Created in 1981 under the new provisional system The only AFP under the same controller over it history 67,5% owned by ILC The most efficient AFP in terms of cost control and the second cheapest on fees * EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat s encaje Privado y Confidencial ILC Page 7 7

8 Habitat: Key considerations Ample growth opportunities Salary base increase Cuprum 20.6% Planvital 2.8% Habitat 25.9% Voluntary savings products Modelo 0.7% Incorporation of independent workers to the system Capture of transfers from competitors Provida 28.5% Capital 21.6% Total AUM = US$162 bn Source: Superintendencia de Pensiones, as of December 31, 2012 Contributors market share (as of December 2012) Contribution rate % 58.4% 56.8% 78.9% 55.6% 48.9% PROVIDA HABITAT CAPITAL CUPRUM MODELO PLANVITAL Products offered 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 Source: Superintedencia de Pensiones 1 Contributors / affiliates Privado y Confidencial ILC Page 8 8

9 Habitat: Key considerations Estrictamente Privado y Confidencial Operating expenses & % fee income (Dec-12) Net Income (Ch$ mm) Fee Income (US$ million) 350 Based on actual figures Adjusted to Habitat s 1.27% fee rate ,089 19,504 Current mandatory fee (Dec 2012) Modelo 15,628 (21,832) CAGR ex-encaje ( 07-12) 22.1% (1,846) 13,061 22,635 26,561 48,615 55,974 63,500 61, Habitat Capital Cuprum Provida Planvital % 1.27% 1.44% 1.48% 1.54% 2.36% 20% 40% 60% 80% 100% Expenses % Fee Income Fee income (US$ million) & Expenses % (Dec 2012) Habitat Cuprum Provida Modelo Planvital Capital % 38.2% 44.6% 42.2% 60.7% 69.1% Privado y Confidencial ILC Page 9 9

10 Habitat: Operating Data Assets under management Contributor average salary Ch$ million Ch$ Fund type E Fund type D Fund type C Fund type B Fund type A 2,762,077 2,680,533 7,650,073 3,803,230 3,170, CAGR: 7.8% 442, , , , , , , , , ,108 Dec 08 Dec 09 Dec 10 Dec 11 Dec-12 Industry Habitat Source: Superintendencia de Pensiones, as of December 31, 2012 Evolution of Habitat AUM ( US$ Million) CAGR: 10.7% Privado y Confidencial ILC Page 10 10

11 Perú GDP per capita GDP per capita US$ US$ CAC: 11,6% 5,781 5,205 6, Unemployment rate rate % of labor force % of the labor force , E 2011 E 2012 E E Source: IMF Source: IMF The peruvian market presents ample growth oportunities, due to the level of development and the political and economic stability Estimated population million Million people CAC: 1,1% Source: Instituto Nacional de Estadísticas e Informática de Perú Privado y Confidencial ILC Page 11 11

12 Habitat: Peru Ample growth opportunities December 20 th, 2012, Habitat was awarded in the first auction in Peru All the new entrant into the formal sector contribute into Habitat for two years Prima 31,2% Profuturo 15,0% Horizonte 23,7% Integra 30,1% 700,000 new beneficiaries expected in two years Total AUM = US$36 bn Source: SBS as of December, 2012 Account holders market share (as of December 2012) Mandatory mix fee rate after the first auction (%) % Integra * 50% Profuturo Horizonte Integra Prima Profuturo Over the contribution Over the AUM Profuturo 1,49% 1,20% Horizonte Integra Prima Habitat PROMEDIO 1,65% 1,55% 1,51% 0,47% 1,33% 1,40% 1,20% 1,90% 1,25% 1,39% Source: SBS as of December, 2012 (*) On April 2013 Source: Superintendencia de Banca, Seguros y AFP del Perú Privado y Confidencial ILC Page 12 12

13 Potential synergies in the health business Average monthly contribution per contributor: USD $135.1 Average monthly contribution per beneficiary: USD $18.7 Medical Bill 10% of the gross salary is the average contribution % of the Net Salary Monthly primus Co-payment between the company and the employee % covered by the person % covered by: % covered by: 7% of the gross salary is the mandatory contribution SYNERGIES or USD 7,9* Full coverage of 69 diseases in a established network * The plan cost U.F. Privado y Confidencial ILC Page 13 13

14 Consalud Income Statement (Th. US$) Revenues Cost of sales Gross Margin Dec ,756 (476,554) 97,202 Dec ,656 (424,514) 85,143 Var. % 12.6% 12.3% 14.2% Created in 1984 under the new provisional health system (Isapre). SG&A Operating Income (75,944) 24,913 (69,036) 18, % 33.3% 99,9% owned by ILC. EBITDA* 32,419 25, % Net Income 21,481 17, % * EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost Privado y Confidencial ILC Page 14 14

15 Consalud: Key considerations Growing demand prospects Leading private health insurance provider and strong market position Cruz Blanca 21.0% Others 4.7% Consalud 22.5% Strong brand recognition Continuous innovation and incorporation of new technologies First choice provider for people moving from the public to the private health insurance system Banmédica 21.1% Total Contributors = 1,584,340 Source: Superintendencia de Salud, as of December, 2012 Others includes Vida Tres, Ferrosalud and close-ended isapres Masvida 14.4% Colmena 16.3% 18% 19% 14% 25% 25% Isapre: 2.8 mm Fonasa D: 3.0 mm Fonasa C: 2.2 mm Fonasa B: 4.0 mm Fonasa A: 3.9 mm Products offered Medical plans Open network plans Preferred provider plans Closed network plans Complementary product offerings Additional coverage for catastrophic diseases Dental plans Pharmacy plans Privado y Confidencial ILC Page 15 15

16 Consalud: Key considerations Estrictamente Privado y Confidencial Number of Contributors (as of December 2012) Average monthly contribution 1 in US$ (Dec-12) , ,1 160,1 173,8 180,9 216, Consalud Banmédica Cruz Blanca Colmena Másvida Vida Tres 100 Consalud Másvida Banmédica Cruz Blanca Colmena Vida Tres Number of Beneficiaries (as of December 2012) Loss ratio 2 (Dec-12) % 86% 86% 85% 84,9% 85,3% 86,2% 85,5% % % 84% 83% 83% 82,8% 83,0% 0 Consalud Banmédica Cruz Blanca Colmena Másvida Vida Tres 82% Consalud Colmena Cruz Blanca Banmédica Másvida Vida Tres Source: Superintedencia de Salud and ILC 1 Operating revenues divided by the number of contributors; 2 Operating expenses divided by operating revenues Privado y Confidencial ILC Page 16 16

17 Consalud: Operating data Estrictamente Privado y Confidencial Dec- 11 Mandatory contributions (Ch$ million) Voluntary contributions (Ch$ million) 182,697 62,748 Others (Ch$ million) 3,353 TOTAL (Ch$ million) 248,798 Dec ,570 65,216 20, ,922 Contributors N Contributors Revenues / Contributor (Ch$) , , , ,364 7,0% 353, ,0% 778,195 Dec-10 Dec-11 Dec N Beneficiaries , ,960 Beneficiaries 639, , , ,053 Dec-10 Dec-11 Dec-12 Revenues / Beneficiary (Ch$) Privado y Confidencial ILC Page 17 17

18 Red Salud Income Statement (Th. US$) Revenues Cost of sales Gross Margin SG&A Operating Income EBITDA* Dec ,301 (269,006) Dec ,183 (219,525) Var. % 21.8% 22.5% 72,294 60, % (53,158) (48,800) 8.9% 19,136 11, % 41,677 29, % One of the main private healthcare providers, reaching close to 20% of the private beds in Chile. 89,9% owned by ILC. National coverage through a network of 17 hospitals and 32 medical centers. Net Income 5,469 2, % * EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost Privado y Confidencial ILC Page 18 18

19 Red Salud: Overview Chilean private hospitals by number of beds (2011) Davila Bicentenario Indisa Alemana Santa Maria Las Condes Sanatorio Aleman Tabancura Reñaca Antofagasta Alemana Temuco Hospital Fusat U.C. San Carlos Del Profesor U.C. Central Clínico de VM Clínica Integral Las Lilas Avansalud H. Clínico del Sur * 553 ILC market share (in terms of private hospital beds): 20% Red Salud hospitals Others Source: ILC, annual reports of the companies as filed with the SVS, except Clinica Alemana, where the information has been derived from its website; *Represents the original number of beds for this project, still not approve by the board. Privado y Confidencial ILC Page 19 19

20 Red Salud: Operational data Estrictamente Privado y Confidencial Dec-11 Admissions Emergency room visits 37,987 90,555 Surgeries 39,151 Patient days 89,418 Dec-12 48, ,214 44, ,535 Includes Bicentenario, Avansalud, Tabancura and Iquique hospitals Dec - 12 Average ocupancy rate Average lenght of stay (days) Tabancura Avansalud 74.1% 53.4% Bicentenario 61.2% Iquique 56.3% Evolution of revenues Ch$ million ,635 25,656 28,631 13,725 19,035 25,592 11,398 27,869 Ch$ million ,645 86,123 97, ,234 5,865 6,060 Tabancura Avansalud Bicentenario Iquique ,442 47,816 28,469 Dec-10 Dec-11 Dec-12 Dec-10 Dec-11 Dec-12 Hospital revenues Outpatient revenues Privado y Confidencial ILC Page 20 20

21 Vida Cámara Income Statement Revenues Cost of Sales Gross Margin SG&A Operating Income EBITDA* Net Income * EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost Dec ,822 (140,627) Dec ,092 (232,380) Var. % (36.2%) (39.5%) 64,195 88,713 (27.6%) (14,406) (6,949) 107.3% 49,790 81,763 (39.1%) 56,768 88,961 (36.2%) 46,023 72,140 (36,2%) Created in 2009 due to the acquisition of 99,9% of RBS (Chile) Seguros de Vida S.A. 99,9% owned by ILC Until June 2012 was focus in the Disenable and Survivorship insurance (D&S) On January 2012 launch the complementary health insurance business, adding more than 15,000 beneficiaries per month Privado y Confidencial ILC Page 21 21

22 Vida Cámara: Key considerations New projects Since July 2012, Vida Cámara stopped supplying the D&S insurance Complementary health insurance Life and catastrophic insurance Entrance in Peru 36% primus market share (July 2010-June 2012) Evolution of beneficiaries for the complementary health insurace Number of beneficiaries ,400 97, , , , , , , , ,061 In average, more than 15,000 beneficiaries per month ,311 41,626 1,376 5,957 15,801 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Privado y Confidencial ILC Page 22 22

23 Other Business Income Statement (Th. US$) Dec 12 Dec 11 Var. % Revenues 37,889 Cost of Sales (14,277) Gross Margin 23,612 32,600 (12,053) 20, % 18.5% 14.9% SG&A (14,955) (13,389) 11.7% Operating Income 8,657 7, % EBITDA* 10,982 9, % Net Income 3,717 2, % * EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost Dec - 12 N of Private Schools N of Subsidized School 9 1 Privado y Confidencial ILC Page 23 23

24 Financial Summary Privado y Confidencial 24

25 Balance Sheet and Income Statement Ch$ millions Balance Dec 12 Dec 11 Income Statement Dec 12 Dec 11 Total current assets 338, ,158 Revenues 678, ,281 Total non current assets 717, ,935 Cost of sales (432,187) (426,431) TOTAL ASSETS 1,055,603 1,004,093 Gross Margin 245, ,850 Total current liabilities 173, ,031 SG&A. 126, ,000 Total non current liabilities 315, ,695 TOTAL LIABILITIES 489, ,726 Operating Income 120, ,136 TOTAL EQUITY 566, ,367 Non Operating Income 17,471 (1,081) TOTAL EQUITY & LIABILITIES 1,055,603 1,004,093 NET INCOME 83,031 81,570 Million Ch$ Dec 12 Millon Ch$ Dec 12 COVENANT < 1,0 X Short term debt 28,361 Cash & cash equivalent 116,203 Net Fin. Debt / Total Equity 0.18 x Long term debt 187,141 Total equity 566,032 Total financial debt 215,502 Privado y Confidencial ILC Page 25 25

26 Financial Data (Dec-12) Estrictamente Privado y Confidencial Financial Debt Financial Debt (USD million) ILC Habitat Vida Cámara Red DDEE Consalud Salud TOTAL Short Term Bonds Bank loans Leasing in UF Long Term Bonds Bank loans Leasing in UF Total Credit Risk Feller Rate: AA+ Humphreys: AA+ Local credit rating EBITDA (Dec-12) Net Income (Dec-12) Ch$ Million ,8% ,0% EBITDA V.Cámara Ch$ Million ,8% ,8% V.Cámara Net Income M11 12M12-12M11 12M12 Privado y Confidencial ILC Page 26 26

27 Deutsche Bank Conference May-13 Privado y Confidencial 27