Tanner Investor Information 2Q 2014

Transcription

1 Tanner Investor Information 2Q 2014

2 Tanner at a Glance Business Description Key Highlights (2Q 14) Tanner Servicios Financieros S.A. ( Tanner ) is a leading Chilean non-banking financial institution, offering a full range of financial products and services mainly to small and mediumsized enterprises ( SMEs ) The Company operates through 4 primary business segments: Domestic Factoring International Factoring Auto Financing Leasing In addition, the Company offers stock, commodities and insurance brokerage services through different subsidiaries Net Income Total Assets Net Loans Shareholders Equity # of Clients # of Branches # of Employees US$ 22.4 mm US$ 1,285.1 mm US$ 1,019.3 mm US$ 384.1mm Over 50, (Arica to Punta Arenas) 1,183 Extensive network of 35 branches through the country, which allow Tanner to reach Chile s diverse economic sectors Significant growth in last year, reflected in a 19.8% Net Loans CAGR (1) for the 2Q 13-2Q 14 period. Experienced management team, with a focus on adequate risk management and high corporate governance standards Net Loans by Business Segment (2Q 14) Leasing 14% 33% Domestic Factoring Clasificación de Riesgo Internacional BBB- BBB- Local A+ A+ Auto Financing 38% 15% International Factoring 2 Source: Tanner. Notes: Provisory Figures reported under IFRS. Amounts stated in US$ have been translated at the exchange rate of Chilean Peso ( CLP ) per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of June 2014). (1) CAGR: Compound Average Growth Rate. Calculated in Local Currency

3 More than 20 years Tanner is established by the controlling shareholders of Banco BHIF (now BBVA Chile), the Massu and Said Groups, under the name Bifactoring S.A. The Company s name was changed to Factorline S.A. in 1998 and later in 2011 to its current name Tanner becomes a member of Factors Chain International ( FCI ), the largest network of factoring companies in the world, enabling the Company to carry out international trade operations in 72 countries with 264 associates Auto financing division is created The IFC (World Bank) enters into Tanner with a 17.6% stake through a capital increase First bond issue in the local market (US$40mm) New issuance of local bonds totaling US$80mm Tanner Insurance Brokerage Division begins operations Issuance of local bonds totaling US$110mm US$20mm capital increase. Company s name changed to Tanner Servicios Financieros S.A. International bond issue USD 250 mm, 5 years, 4,375%. Acquisition of CIT Chile, nown Tanner Leasing Vendor The Capital Group enters into Tanner with a 27.0% stake through a capital increase of US$200mm Tanner participates actively in the foundation of the Chilean Factoring Association (Asociación Chilena de Empresas de Factoring A.G., or ACHEF ), which aims to provide an institutional framework for the sector and foster its development Registration with the Chilean Securities and Insurance Supervisor (Superintendencia de Valores y Seguros, or SVS ) Tanner performs the 1 st ever commercial paper issuance in Chile Tanner Commodities Brokerage Division is registered with the SVS as the first broker on Chile's Commodities Exchange Leasing division is created Issuance of local bonds totaling US$60mm US$20mm capital increase. Acquisition of a 50% stake in Tanner Securities Brokerage Division. Grupo Massu increases its stake to 71% US$41mm Capital increase Issuance of local bonds totaling US$70mm BBB- (investment grade) International Rating is obtained from both Fitch and S&P. 3 Source: Tanner

4 Solid Performance Net Loans (US$mm) Revenues (US$mm) $785.1 $972.4 $851.0 $1,019.3 $164.1 $202.8 $96.7 $105.2 (6 months) (6 months) Net Income (US$mm) Efficiency Ratio (1) $35.3 $ % 38.0% 37.1% 42.1% $21.4 $22.4 (6 months) (6 months) 4 Source: Tanner. Notes: Balance Sheet provisory figures reported under IFRS. Amounts stated in US$ have been translated at the exchange rate of CLP per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of June 2014) (1) Calculated as Administrative Expenses for the period divided by Gross Profit before Write-offs and Provisions for the period.

5 Strong Capital Structure Shareholders Equity (US$mm) Leverage (1) $373.9 $ x 4.9x $177.2 $ x 2.3x ROAE (2) ROAA (3) 23.9% 16.2% 23.2% 11.8% 4.0% 3.9% 4.0% 3.5% Capital increase 5 Source: Tanner. Notes: Balance Sheet provisory figures reported under IFRS. Amounts stated in US$ have been translated at the exchange rate of CLP per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of June 2014). (1) Calculated as Total Liabilities divided by Total Shareholders Equity at the end of each period. (2) Calculated as Net Income for the period (annual) divided by average Shareholders Equity for the period. (3) Calculated as Net Income for the period (annual) divided by average Total Assets for the period.

6 Risk Management Reflected in Low NPL Ratios (1) days > 90 days Factoring 5.4% 5.4% 7.1% 2 Q14: excluding G.Pescanova operations, index >90 days is 3.6% 1.6% 1.1% 1.1% 1.3% 1.2% 1-90 days > 90 days Auto Financing 1.2% 1.3% 1.1% 1.3% 0.9% 1.2% 1.2% 1.5% 1-90 days > 90 days Leasing 2.5% 2.1% 2.1% 2.2% 1.3% 1.3% 1.5% 1.7% 6 Source: Tanner. Note: Provisory Figures reported under IFRS. (1) NPL Ratio: Non-Performing Loans / Total Loans.

7 Funding Base Solid Financial Position Funding Breakdown (2Q 14) Access to diversified sources of funding Bank Loans: established relationships with most Chilean domestic banks combined with an increasing access to foreign institutions Local Commercial Paper: first-ever and #1 issuer in the market (35% of issue volume in 2014) Local Bonds: 9 issues to date, with outstanding debt totaling ~US$270.6mm International Bond: first international issue, US$ 250 mm, 5 years Foreign Banks 6% Domestic Banks 2% Commercial Paper 19% Local Bonds 38% Strong liquidity provided by the factoring portfolio, with an average daily collection of ~US$9mm at June 30, 2014 Capital increases performed in have allowed the Company to finance its growth plan Foreign Bonds 35% US$709.0mm Current Debt Maturity Profile Total Debt (2014): US$709.0mm $163.3 $92.6 $79.5 $290.5 $22.0 $43.8 $11.6 $5.8 $ Sources: Tanner, SVS. Note: Figures reported under IFRS. Amounts stated in US$ have been translated at the exchange rate of CLP per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of March 2014).

8 Other Business Segments Securities Brokerage Summary Overview Acquired by Tanner in 2011 Securities brokerage and wealth management Strong brand recognition: 90 years in the local market New experienced senior management since Apr-12 Focus on becoming one of the top 5 leaders in the market $1.8 Net Income (US$mm) $4.7 $3.6 -$ Q'13 2Q'14 Commodities Brokerage Summary Overview Started operations in 2005 and 1 st commodities broker to register with the SVS Engaged in brokerage factoring transactions and inventory financing Leading player with proven growth track record Net Income (US$mm) $ 1.1 $ 0.7 $ 0.5 $ Q' 13 2Q' 14 Insurance Brokerage Summary Overview Dedicated insurance brokerage subsidiary created in 2011 Significant growth opportunities derived from cross selling the Company s core business lines (i.e. auto financing) Net Income (US$mm) $ 1.7 $ 1.1 $ 0.5 $ 0.3 All these subsidiaries are supervised by the SVS 8 Sources: Tanner, Bolsa de Comercio de Santiago ( BCS ), Bolsa de Productos de Chile ( BdeP ), AACh. Notes: Tanner s Balance Sheet and Income Statement provisory figures reported under IFRS. Amounts stated in US$ have been translated at the exchange rate of CLP per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of June 2014).

9 Summary Financial Statements

10 Summary Financial Statements Income Statement US$mm Q'13 2Q'14 Revenues Cost of Sales Gross Profit Administrative Expenses Operating Income Profit Before Taxes Income Tax Non-Controlling Interest Net Income Balance Sheet US$mm Q'13 2Q'14 Cash & Cash Equivalents ST Net Loans Total Current Assets LT Net Loans Total Non-Current Assets Total Assets , , ,285.1 ST Debt Accounts Payable Total Current Liabilities LT Debt Total Non-Current Liabilities Total Liabilities Equity Attributable to Owners of Parent Non-Controlling Interest Total Shareholders Equity Source: Tanner. 10 Notes: Balance Sheet provisory figures reported under IFRS. figures June 2014 Amounts stated in US$ have been translated at the exchange rate of CLP per US$, which was the official rate certified by the Central Bank for June 30, 2014 (last business day of June 2014).