Empresas Banmédica. Company and Market Overview September 2008

Transcription

1 Empresas Banmédica Company and Market Overview September 2008

2 Contents Market Overview Isapres Private Hospitals Empresas Banmédica Business organization Shareholder and stock Financial Evolution Main Business lines Financial Highlights Consolidated Business Areas Strategic View Health Insurance business line Medical Facility Opportunities International expansion: Colombia and Peru 2

3 Market Overview Isapres Private Hospitals Empresas Banmédica Business organization Shareholder and stock Financial Evolution Main Business lines Financial Highlights Consolidated Business Areas Strategic View Health Insurance business line Medical Facility Opportunities International expansion: Colombia and Peru 3

4 Market Overview Distribution of Population by Coverage Penetration Private Health Insurance 11,0% 11,5% 14,5% 14,7% 13,7% 14,4% 15,0% 15,2% 15,1% 16,8% 14,4% 16,4% 16,9% 16,9% 16,0% 15,7% 14,2% Colombia 15,9% 18,9% 21,8% 24,5% 25,7% 26,0% 25,9% 26,1% 24,4% 21,7% 20,0% 18,8% 17,9% 17,0% 16,6% 16,3% 16,3% USA 60% 75% Chile 16% UK 12% 73,1% 69,5% 63,7% 60,9% 60,6% 59,6% 59,0% 58,8% 60,5% 61,5% 65,6% 64,9% 65,2% 66,1% 67,4% 68,0% 69,5% Spain 10% Argentina 8% México 3% Fonasa Isapres Otros Perú 2% Source: Fonasa and Superintendence of Health Source: World Bank and Banmedica 4

5 Market Overview 8000 Health Expenditure over GDP Percapita 2005 Chilean health expenditure reaches around 8% of GDP. According to our projections, it is distributed by the following structure: Gasto en salud per cápita (US$ PPP) 6000 EEUU 4000 España Chile 2000 Argentina Perú Italia Out of Pocket US$2.500 MM Pharmacy US$ MM Public Sector US$ MM PIB per cápita (US$ m ile s PPP) Isapres US$ MM Source: World Bank Source: Banmedica 5

6 Market Overview: Isapres Beneficiaries of Isapre Industry Isapre Industry has recovered clients after economic crisis at the beginning of this decade (1Q) Revenues and Affiliates Isapre Industry Ingresos (US$ M Miles de afiliad Also, Isapre Industry has increased constantly its revenues, reaching to US$ 2 billions in Revenues Affiliates Source: S. of Health 6

7 Market Overview: Isapres Expenditure by Beneficiary Isapre Industry (CL $ 2007) Market Share Industry (2Q 08) Colmena 18,6% Más Vida Others1,8% 110,4% Banmédica & Vida Tres 30,8% Health Expediture Work Illnes Expenditure Source: S. of Health Cruz Blanca 20,4% Consalud 18% Source: S. of Health Health expenditure by beneficiary of Isapre Industry has increased at 6,6% a year from 2000 and work illness at 4,2% annually. Those rates are similar to USA and European health insurances and they are associated to heath trends like ageing populations, medical solutions and improvement of economic standards Empresas Banmédica holds leadership over isapre s market share, with close to 31% of revenues 7

8 Market Overview: Private Hospitals Occupancy Rate 2Q Market Share 2Q 2008 Santa María Dávila 80% 83% 77% 78% Indisa 13% Vespucio 4% CLC 14% CLC Alemana 72% 79% 68% 71% Tabancura 7% Alemana 19% Indisa 67% 66% Tabancura 66% 66% UC 64% 61% Vespucio 58% 57% 0% 20% 40% 60% 80% 100% 2Q 07 2Q 08 Dávila 24% UC 6% Santa María 14% Source: Banmédica Santa María and Dávila keep the highest occupancy of private hospitals in Santiago. Also, market share of Banmedica s hospitals reached 42% during first six months of

9 Market Overview Isapres Private Hospitals Empresas Banmédica Business organization Shareholder and stock Financial Evolution Main Business lines Financial Highlights Consolidated Business Areas Strategic View Health Insurance business line Medical Facility Opportunities International expansion: Colombia and Peru 9

10 Empresas Banmédica: Business Organization Strong position in health insurance and medical facilities business in Chile Banmédica gives complex health solutions to its clients International business model Empre médica 100% ROE Laboratories 81,7% San Felipe Hospital Capital injection for US$ 5 mm to increase participation to 63% 50,0% 10

11 Empresas Banmédica: Shareholders and Stock Shareholders Structure Others 33,8% Las Bardenas Chile S.A. 2,7% Grupo Garcés 2,3% Moneda S.A.A.F.I. 3,8% Grupo Fernández León (Inv. Sta. Valeria) 28,7% Grupo Penta 28,7% Source: SVS 2008 Prestige of shareholders Board and Managers with more than 20 years of experience in health industry Long term vision to invest and create value Stock Price Evolution Banmedica share price has been influenced by subprime market crisis. Market Cap range 18 months: US$ 0,85-1,1 billions Source: Bolsa de Comercio Santiago 11

12 Empresas Banmédica: Financial Evolution (US$ MM) Balance Sheets Current Assets Fixed Assets Other Assets Total Assets Current Liabilities Long Term Liabilities Minoritary Interest Equity Equity and Liabilities Statements of Operations Revenues Operating Expenses Administrative and Sales Operational Results Not Operational Results Net Results EBITDA Margin Operational 5,4% 6,1% 6,6% 8,7% 10,3% 8,7% 7,8% Ebitda 7,5% 8,6% 9,2% 11,7% 13,3% 11,3% 10,0% Net Result 3,1% 3,5% 4,1% 5,5% 6,8% 6,4% 5,6% 12

13 Empresas Banmédica: Main Business Lines Health Insurance Isapre Banmédica Affiliates: Beneficiaries: Market Share (#): 24,3% Branches: 79 Banmédica and Vida Tres Health Expenditure addressed to our medical network Banmedica s Network 35% Others 65% Isapre Vida Tres Affiliates: Beneficiaries: Market Share (#): 5,4% Branches: 31 Revenues: US$ 615 mm Ebitda: US$ 29 mm Net Result: US$ 29 mm 13

14 Empresas Banmédica: Main Business Lines Medical Facilities Clínica Santa María Square Meters: Attentions: Surgery Rooms : 14 Beds: (2009) Occupancy Rate: 81% Clínica Dávila Square Meters : Beds: (2009) Surgery Rooms: 16 Occupancy Rate: 80% Attentions: Revenues: US$ 247 mm Ebitda: US$ 44 mm Net Result: US$ 24 mm 14

15 Empresas Banmédica: Main Business Lines Medical Facilities Vida Integra Medical Centers: 12 Attentions: Managed Care operational system Home Medical Clinic Patients a year: Beds used daily: 80 Medical Procedures: 600 Those companies are in development stage. Revenues will reach around US$ 90 millions in 2008 Clínica Vespucio Square Meters m2 100 beds 6 surgery rooms Emergency Located in popular zone of Santiago Clínica Bio Bio Square Meters m2 60 beds 5 surgery rooms Located in Concepción (South of Chile) Clínica Ciudad del Mar Square Meters m2 52 beds 5 surgery rooms Located in Viña del Mar (beach 120 km. from Santiago) 15

16 Empresas Banmédica: Main Business Lines Rescue Service Affiliates: Market Share (#): 70% Medical Services a year: Hubs: 10 Ambulances: 79 Revenues: US$ 49 mm Ebitda: US$ 9 mm Net Result: US$ 6 mm 16

17 Empresas Banmédica: Main Business Lines International Business Colmédica (Colombia) Clínica del Country (Colombia) Beneficiaries: Square Meters : Market Share (prepago): 18% Beds: (2010) Call Services : Surgery Rooms: 11 Branches: 32 Occupancy Rate: 80% Revenues: US$ 206 mm Attentions: Ebitda: US$ 10 mm Revenues: US$ 54 mm Net Result: US$ 6 mm Ebitda: US$ 14 mm Net Result: US$ 8,3mm Laboratorios Roe and Clinica San Felipe (Perú) Square Meters: Beds: 55 Occupancy Rate: 74% 8 branches lab exams a year Revenues: US$ 22 mm Ebitda: US$ 5,5 mm Net Result: US$ 2,5 mm 17

18 Market Overview Isapres Private Hospitals Empresas Banmédica Business organization Shareholder and stock Financial Evolution Main Business lines Financial Highlights Consolidated Business Areas Strategic View Health Insurance business line Medical Facility Opportunities International expansion: Colombia and Peru 18

19 Financial Highlights: Consolidated Revenues (Y-1S) ($MM-08) CAGR: 8,2% $

20 Financial Highlights: Consolidated Ebitda Share 2008 (Y-1S) International 10% Ambulatory Serv 5% Health Insurance 27% Rescue Service 8% Med. Care Hosp 5% Hospitals 45% Total Annual Ebitda 1S 08: US$113 millions 20

21 Financial Highlights: Consolidated Balance Sheet (1S ) Balance Sheet (Ch $ Millions) JUN 1S 07 JUN 1S 08 Current Assets Fixed Assets Other Assets Total Assets Current Liabilities Long Term Liabilities Minoritary Interest Equity Equity and Liabilities

22 Financial Highlights: Consolidated Financial Results (1S 07-08) Financial Highlights (Ch $ Millions) JUN 1S 07 JUN 1S 08 Revenues Cost of Sales Gross Income Gross Margin (%) 27% 26% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 11% 11% Non Operating Result Net Income Net Margin (%) 6% 6% Revenues increased 5.3% Operating incresed 2.9% Ebitda Margin up 9.8% in 1S 08 compared with 1S 07 22

23 Financial Highlights: Business Areas Health Insurance (1S 07-08) Health Insurance Financial Highlights (Ch $ Millions) 1S 07 1S 08 Revenues Cost of Sales Gross Income Gross Margin (%) 18,44% 17,28% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 6,88% 6,12% Non Operating Result Net Income Net Margin (%) 6,27% 6,08% Net margin decreased 19 bsp due to medical loss ratio grew slightly. However, for 2008 the trend of net income is maintaining profit level of last year 23

24 Financial Highlights: Business Areas Hospitals * (1S 07-08) Hospitals Financial Highlights (Ch $ Millions) 1S 07 1S 08 Revenues Cost of Sales Gross Income Gross Margin (%) 29,51% 30,67% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 16,46% 17,93% Non Operating Result Net Income Net Margin (%) 8,16% 8,49% Gross margin increased 116 bsp Ebitda rose more than $1.500 millions Net income increased 8.2% and net margin 33 bsp * Note: Hospitals area includes the following institutions: Santa María, Dávila, Vespucio, Ciudad del Mar and Bio Bio 24

25 Financial Highlights: Business Areas Ambulatory Services (1S 07-08) Ambulatory Services Financial Highlights (Ch $ Millions) 1S 07 1S 08 Revenues Cost of Sales Gross Income Gross Margin (%) 20,87% 19,41% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 13,49% 11,88% Non Operating Result Net Income Net Margin (%) 6,07% 4,96% 25

26 Financial Highlights: Business Areas Rescue Services (1S 07-08) Rescue Services Financial Highlights (Ch $ Millions) 1S 07 1S 08 Revenues Cost of Sales Gross Income Gross Margin (%) 63,96% 64,23% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 20,13% 20,16% Non Operating Result Net Income Net Margin (%) 14,64% 14,86% 26

27 Financial Highlights: Business Areas Colmédica Colombia (1S 07-08) Colmédica Financial Highlights (Ch $ Millions) S S Revenues Cost of Sales Gross Income Gross Margin (%) 23,93% 21,97% SG & A Depreciation Operating Income Ebitda Ebitda Margin (%) 7,63% 7,75% Non Operating Result Net Income Net Margin (%) 5,21% 4,39% Colmedica s net income decreased in Chilean pesos for revaluation of Colombian currency. Operating and net income expressed in Colombian pesos rose to June 2008 compared with June

28 Financial Highlights: Business Areas C. del Country Colombia (1S 08) Clínica del Country S.A. Financial Highlights (Ch $ Millions) S Revenues Cost of Sales Gross Income Gross Margin (%) 28,10% SG & A Depreciation -836 Operating Income Ebitda Ebitda Margin (%) 24,19% Non Operating Result -861 Net Income Net Margin (%) 13,33% 28

29 Financial Highlights: Business Areas Empremédica Perú (1S 08) Empremédica Clínica San Felipe y Lab. Roe Financial Highlights (Ch $ Millions) S Revenues Cost of Sales Gross Income Gross Margin (%) 32,55% SG & A -998 Depreciation -247 Operating Income Ebitda Ebitda Margin (%) 22,73% Non Operating Result -621 Net Income 874 Net Margin (%) 11,41% 29

30 Market Overview Isapres Private Hospitals Empresas Banmédica Business organization Shareholder and stock Financial Evolution Main Business lines Financial Highlights Consolidated Business Areas Strategic View Health Insurance business line Medical Facility Opportunities International expansion: Colombia and Peru 30

31 Strategic View: Health Insurance Business Line Isapres: Revenues and Affiliates last 5Y Ingresos (US$ MM) Ingresos Afiliados Source: S. of Health Miles de afiliados Isapre s industry has consolidated the mass of clients and competitors. Although isapre s market is mature, last year affiliates of private health insurance grew 6% Isapres: Net Income / Revenue Ratio ,73% We are focused on getting higher return with our current clients. Medium and high income segments Selective sales 1,84% Strong relationship with medical network BM & V3 Competitors Source: S. of Health 31

32 Strategic View: Medical Facility Opportunities Banmedica s Medical Beds Offer increment 23% Opportunity # 1: We have excess of demand for medical attentions in our hospitals. We are increasing our infrastructure to attend more patients. Banmedica s hospital bed capacity will increase around 23% by Source: Banmédica Public expenditure in Private Medical Institutions (*) CAGR: 9,7% Opportunity # 2: Public sector (Fonasa) is buying private health attentions. In fact, public budget oriented to private sector reaches around US$ 600 millions currently, increasing at 10% a year. Clinica Dávila (hospital) and Vidaintegra (ambulatory centers) are receiving patients from Fonasa (*) CL $ millions Source: Fonasa 32

33 Strategic View: International Expansion Taking advance of the lapse of 20 years CSF expansion plan Roe Laboratories: radiological services and openings out of Lima New Hospital Replicating Banmedica s Business Model Increase mass of affiliates of Colmédica Clínica del Country expansion plan New hospitals and medical centers 33