Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q4 2016 Earnings Presentation
43 slides from Afp Habitat Sa's earnings presentation, April 2017
Slide 1: Company Presentation Q4-2016 Results
Company Presentation Q4-2016 Results April 2017
Slide 2: Agenda
Agenda 2016 Highlights Appendix Recent Events 2
Slide 3: Agenda
Agenda 2016 Highlights Appendix 3
Slide 4: Key Indicators
Key Indicators Monthly Contributors Average Monthly Salary Base Contributors Mkt % Total CLP th TOTAL AUM1 APV AUM1 CAV AUM1 Source: AFP Habitat. (1): Figures in CLP converted to USD at average transactional Fx rate on previous business day 4 (CLP/USD) 667,17 as of December 31st, 2016.
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM Dec-16 Dec-15 Var 16/15 Var 16/15 % Revenues 167,337 153,651 13,686 8.9% Remuneration and Employee Related Expenses (37,503) (35,753) (1,750) 4.9% Other Operating Expenses (33,153) (32,522) (631) 1.9% Operating Expenses (70,656) (68,275) (2,381) 3.5% Depreciation
Slide 6: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 16/15 Adj Var 16/15 % Revenues 167,337 10,555 156,782 3,131 2.0% Remuneration and Employee Related Expenses (37,503) (4,392) (33,111) 2,642 -7.4% Other Operating Expenses (33,153) (6,434) (26,718) 5,804 -17.8%
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM Dec-16 % Dec-15 % Var 16/15 Var 16/15% Revenues From Fees (Chile) Mandatory (CCICO) 144,907 93.2% 135,796 93.2% 9,111 6.7% APV 5,105 3.3% 4,714 3.2% 391 8.3% CAV 3,088 2.0% 2,927 2.0% 162 5.5% Pensions 2,400 1.5% 2,105 1.4% 295 14.0% Other Fees 39 0.0% 160 0.1% (122) -75.9%
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM Dec-16 % Dec-15 % Var 16/15 Var 16/15 % Administrative Employees Remuneration (17,945) 47.9% (16,774) 46.9% (1,171) 7.0% Sales Employees Remuneration (11,803) 31.5% (11,434) 32.0% (370) 3.2% Employee Short-Term Benefits (5,160) 13.8% (4,398) 12.3% (761) 17.3% Post
Slide 9: Differentiated Service Offering
Differentiated Service Offering Habitat Móvil 13 Branches opening 22 mobile branches on Saturday mornings Coverage: 186 comunas and 188 localidades New web services for Website chat service voluntary savings Business hours extension Online Appointment in the call center Reservation Friday afternoon
Slide 10: 2016 Consolidated Balance Sheet
2016 Consolidated Balance Sheet CLP MM Dec-16 Dec-15 Var % Cash and Equivalents 43,629 42,146 3.5% Other Current Assets 4,108 5,910 -30.5% Total Current Assets 47,737 48,057 -0.7% Reserve Requirements 311,144 282,261 10.2% Other Non Current Assets 37,480 22,850 64.0% Total Non Current Assets 348,624
Slide 11: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM EBITDA / Reserve Requirement Net Profit CLP MM CLP MM 11 Source: AFP Habitat S.A. (“AFP Habitat” or “Habitat”) Consolidated Financial Statements under IFRS and GAP.
Slide 12: AFP Habitat: Return on Investment Chile
AFP Habitat: Return on Investment Chile 1st 2nd 3rd 4th 5th 6th AF P HABIT AT Ac c ount 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) St at ement A B C D E A B C D E A B C D E Dec - 16 - 0,22 1,68 2,48 3,49 4,31 4,14 4,24 4,71 4,55 4,00 5,11 4,44 4,75 4,66 4,11 Aug- 16 2.10 2.89 2.80 2.49 2.89 7.27 6
Slide 13: Return on Investment Chile (Cont'd)
AFP Habitat: Return on Investment Chile (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CAPIT AL_Ranking AF P CUPRUM_Ranking Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) St at ement A B C D E A B C D E A B C D E St at ement A B C D E A B C D
Slide 14: Return on Investment Chile (Cont'd)
AFP Habitat: Return on Investment Chile (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P PLANVIT AL_ Ranking AF P PROVIDA_Ranking AF P MODELO_Ranking Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mo
Slide 15: AFP Habitat: Return on Investment Peru
AFP Habitat: Return on Investment Peru 1st 2nd 3rd 4th Annualized Nominal Returns' Dec. 2016 / Dec. 2015 Habitat Integra Prima Profuturo Fund 1 10,54% 7,92% 8,64% 6,52% Fund 2 11,01% 10,32% 10,18% 9,10% Fund 3 12,03% 10,79% 10,01% 10,28% Source: Superintendencia de Banca, Seguros y AFP. Principales
Slide 16: Agenda
Agenda 2016 Highlights Appendix 16
Slide 17: Stock Performance
Stock Performance 1985-2017YTD Market Cap CLP $MM USD 1000 2.500 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high share price of CLP 1,000 900 1.933 Dec 31th, 2016: 800 2.000 share price of CLP 800 1.499 700 1.329 1.302 2010: CChC purchases Citigroup’s shares 1.500 1.199 1.
Slide 18: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 19
Slide 19: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) MS (%) Total Contributors (MM) MS (%) AUM* Contributors / Affiliates MS (%) Percentage AUM (USD bn) Source: Superintendencia de Pensiones as of Dec-2016 Fx (CLP/USD) 667.29. 20
Slide 20: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD FX (Pesos/Dollar) UF MM 11.9% Average Monthly Salary 13.2% higher than Salary Base has grown at: industry average, as of Dec-2016 7.0% per year since Dec-04 6.4% per year since Dec-09 Source: SP as of Dec-2
Slide 21: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 26,4% 24,9% 25,9% 21,6% 25% 21,3% 17,6% 15,4% 20% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Dec-2016 Dec-2015 Dec-2014 Dec-2013 Dec-2012 Dec-2011 Dec-2010 Dec-2009 Dec-2008 Dec-2007 AFP Habitat
Slide 22: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 35% 35% 30% Provida 30% Provida MS (%) Contributors (Avg. LTM Dec-2016) MS (%) Contributors (Avg. LTM Dec-2016) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Plan
Slide 23: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 24
Slide 24: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) # of CAV Accounts AUM CAV # of accounts MS (%) USD th MS (%) 25 Source: SP as of Dec-2016.
Slide 25: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1.800.000 1.613.611 1.600.000 1.507.081 1.400.000 1.200.000 1.000.000 800.000 595.826 600.000 522.222 400.000 200.000 44.834 18.869 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry player
Slide 26: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 27
Slide 27: AFP Industry Overview
AFP Industry Overview 1980 Chilean legislation (Law Decree 3500) established a compulsory individual capitalization system with privately-managed pension funds (AFP) New AFP system launched with 12 players 1981 1985 AFPs authorized to invest in corporate stocks 2000 In accordance with regulatory mod
Slide 28: AFP Industry Composition: 1981 – 2016
AFP Industry Composition: 1981 – 2016 1981 1990 1994 1995 1998 2004 2008 2016 (12) (14) (21) (15) (8) (6) (5) (6) HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT HABITAT CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM CUPRUM ALAMEDA Since 1981, Habitat is one UNION UNION UNION of only two A
Slide 29: AFPs Product Offering
AFPs Product Offering CCICO (Mandatory Contribution Account) Pensions (RP, Programmed Withdrawals) Compulsory savings = 10% of gross Pension payment alternative whereby salary base1 affiliate maintains pension account with Fees: 0.41%-1.54% of salary base the AFP (Habitat = 1.27%) Fee: 0.95%
Slide 30: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 31
Slide 31: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.2 bn4 Chilean Construction Chamber (Cámara Employees: 1,7241 Chilena de la Construcción, or CChC) 26 branches, 5 service centers, 22 mobile CChC and Prudential Financial co-control AF
Slide 32: Revenues from Fees Breakdown
Revenues from Fees Breakdown Dec-14 Dec-16 2.3%1.8%1.6% Dec-14 Dec-16 AFP 94.2% Industry (exc. Habitat) CCICO APV CAV Pensions Other 33 Source: SP. AFPs’ financial statements.
Slide 33: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 34
Slide 34: Operation in Peru
Operation in Peru • AFP Habitat was awarded the first new affiliates auction in Peru to receive all new entrants for a 2-year period (starting June, 2013-ending May, 2015) • Our Commercial launch took place on June 1st, 2013 • In December, 2014 AFP Habitat proudly won the second affiliates auction i
Slide 35: Peruvian Operations (Cont'd)
Peruvian Operations (Cont’d) Affiliates 3rd Bidding Process in Peru MS% Affiliates (th) • In mid December, 2016 the 3rd new entrant affiliate bidding process was carried out in Peru. • 3 out of 4 existing private AFP’s participated: Habitat, Prima and Integra, whereas Profuturo abstained. • AFP Prim
Slide 36: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 37
Slide 37: Contact with our Customers
Contact with our Customers We serviced over 1.1MM customer visits in our Branch branches until December 2016 Offices Nationwide coverage currently includes 26 branches, 5 service centers, 22 mobile branches and 3 stands in malls. Up until December 2016, our website transactions Internet were 18.6 MM
Slide 38: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 226 Website thousand contacts from Jan-Dec. 2016 Chat Up until December 2016 over 2.6 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In October, 2016 over 1.4 MM account statements Statements were sent to our affiliates 58% of these were emailed Social As of December, 2016 we had 120,814 th followers on Facebook and Twitter Networks First AFP to use social networks As of December, 2016
Slide 40: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. Operation in Peru 7. Contact with our Customers 8. AFP Habitat Funds Breakdown 9. AFP Habitat Dividend Policy 41
Slide 41: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 5.5 bn Fund B: USD 6.6 bn Fund C: USD 16.9 bn Fund D: USD 7.4 bn E: USD 11.1bn Total: USD 48 bn 42 Source: SP as of Dec-2016. Fx (CLP/USD): 659.08
Slide 42: Dividend Policy
Dividend Policy AFP Habitat’s Dividend Policy Distribute a minimum of 90% of “distributable net income” (DNI): o Annual net income, minus the financial gains on the required reserve in the event that it is positive, and minus net reserves purchased in the period Policy of interim dividends: twic
Slide 43: Company Presentation Q4-2016 Results
Company Presentation Q4-2016 Results April 2017