Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q1 2016 Earnings Presentation
45 slides from Afp Habitat Sa's earnings presentation, May 2016
Slide 1: Company Presentation Q1-2016 Results
Company Presentation Q1-2016 Results May 2016
Slide 2: Agenda
Agenda 2016 Highlights Appendix 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) 675.10 as of March 31st, 2016.
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM Mar-16 Mar-15 Var 15/14 Var 15/14 % Revenues 41,180 37,800 3,380 8.9% Remuneration and Employee Related Expenses (8,621) (8,144) (477) 5.9% Other Operating Expenses (6,983) (6,955) (29) 0.4% Operating Expenses (15,605) (15,099) (506) 3.4% Depreciation and Amortiz
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 41,180 2,163 39,017 1,217 3.2% Remuneration and Employee Related Expenses (8,621) (1,044) (7,577) 567 -7.0% Other Operating Expenses (6,983) (1,429) (5,555) 1,400 -20.1% Operatin
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM Mar-16 % Mar-15 % Var 15/14 Var 15/14 % Revenues From Fees (Chile) Mandatory (CCICO) 36,192 93.5% 33,842 93.6% 2,350 6.9% APV 1,211 3.1% 1,134 3.1% 77 6.8% CAV 750 1.9% 676 1.9% 73 10.9% Pensions 568 1.5% 498 1.4% 69 14.0% Other Fees 8 0.0% 10 0.0% (2) -16.0% Total Revenues
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM Mar-16 % Mar-15 % Var 15/14 Var 15/14 % Administrative Employees Remuneration (4,190) 48.6% (3,930) 48.3% (260) 6.6% Sales Employees Remuneration (2,713) 31.5% (2,406) 29.5% (307) 12.8% Employee Short-Term Benefits (1,038) 12.0% (1,040) 12.8% 2 -0.2% Post-Employme
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 Mar-16 Dec-15 Var % Cash and Equivalents 54,457 42,146 29.2% Other Current Assets 5,003 5,910 -15.3% Total Current Assets 59,460 48,057 23.7% Reserve Requirements 285,624 282,261 1.2% Other Non Current Assets 25,452 22,850 11.4% Total Non Current Assets 311,076
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
AFP Habitat: Return on Investment 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 - 15 4.03 2.88 2.75 2.40 0.84 6.60 5.22 5.50 5.27 4.23 2.81 2.56 3.58 4.12 4.21 Aug- 15 - 0.68 0.04 1.81 2.51 1.60 8.20 6.64 6.
Slide 13: Return on Investment (Cont'd)
AFP Habitat: Return on Investment (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 (%) AF P MODELO_Ranking St at ement A B C D E A B C D E A B C D E St at ement A B
Slide 14: Agenda
Agenda 2015 Highlights Appendix 14
Slide 15: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 15
Slide 16: Stock Performance
Stock Performance 1985-2016YTD 2010-2016YTD Price (Base 100, Volume Traded CLP 31 Dec-2010) (CLP MM) 1000 May 10th, 2016: share price of CLP 830 900 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high 800 share price of CLP 1,010 700 2010: CChC purchases Citigroup’s shares and
Slide 17: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 17
Slide 18: 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 Mar-2016 Fx (CLP/USD) 675.10. 18
Slide 19: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD FX (Pesos/Dollar) UF MM 9.8% Average Monthly Salary 9.8% higher than Salary Base has grown at: industry average, as of Mar-2016 7.0% per year since Dec-04 6.0% per year since Dec-09 Source: SP as of Mar-201
Slide 20: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 25.4% 26.3% 25.6% 21.8% 22.2% 25% 18.3% 15.8% 20% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Mar-2016 Mar-2015 Mar-2014 Mar-2013 Mar-2012 Mar-2011 Mar-2010 Mar-2009 Mar-2008 Mar-2007 AFP Habitat
Slide 21: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 35% 35% 30% Provida 30% Provida MS (%) Contributors (Avg. LTM Mar-2016) MS (%) Contributors (Avg. LTM Mar-2016) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Plan
Slide 22: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 22
Slide 23: 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 (%) 23 Source: SP as of Mar-2016.
Slide 24: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1,468,133 1,486,324 1,500,000 1,300,000 1,100,000 900,000 700,000 576,462 545,434 500,000 300,000 100,000 37,176 16,261 -100,000 Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are
Slide 25: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 25
Slide 26: 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 27: AFP Industry Composition: 1981 – 2015
AFP Industry Composition: 1981 – 2015 1981 1990 1994 1995 1998 2004 2008 2015 (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 28: 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: 0.47%-1.54% of salary base the AFP (Habitat = 1.27%) Fee: 0.95%
Slide 29: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 29
Slide 30: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.2 bn5 Chilean Construction Chamber (Cámara Employees: 1,7121 Chilena de la Construcción, or CChC) 27 branches, 6 service centers, 22 mobile CChC controls AFP Habitat through branches
Slide 31: Revenues from Fees Breakdown
Revenues from Fees Breakdown Mar-14 Mar-16 2.3%1.8%1.6% Mar-14 Mar-16 AFP 94.2% Industry (exc. Habitat) CCICO APV CAV Pensions Other 31 Source: SP. AFPs’ financial statements.
Slide 32: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 32
Slide 33: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 3 2 1 3 2 1 As of Q4-2015 AFP Habitat is one of the most efficient AFP,´s under current commissions and when adjusting for commissions. Habitat has the 3rd lowest CCICO fee in the industry. Source: SP, Individual Financial Statemen
Slide 34: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 34
Slide 35: 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 36: Peruvian Operations (Cont'd)
Peruvian Operations (Cont’d) Affiliates Annual Return on Investment Affiliates (th) MS% Annualized Nominal Returns' Mar. 2016 / Mar. 2015 Habitat Integra Prima Profuturo Fund 1 N.A. 4.73% 3.91% 4.42% Fund 2 3.97% 2.93% 3.02% 2.45% Fund 3 N.A -1.09% -1.50% -0.30% • Due to regulations we are unable to
Slide 37: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 37
Slide 38: Contact with our Customers
Contact with our Customers We serviced over 302th customer visits in our branches Branch until March 2016 Offices Nationwide coverage currently includes 26 branches, 6 service centers, 22 mobile branches and 3 stands in malls. Up until Mar. 2016, our website transactions were 4.5 Internet MM Includi
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 61 Website thousand contacts from Jan-Mar 2016 Chat Up until March 2016 over 780,110 thtransactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines l
Slide 40: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In February, 2016 over 1.9 MM account statements Statements were sent to our affiliates 48% of these were emailed Social As of March, 2016 we had over 104,000 followers on Facebook and Twitter Networks First AFP to use social networks As of March, 2016 Hab
Slide 41: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 41
Slide 42: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 5.6 bn Fund B: USD 6.6 bn Fund C: USD 16.3 bn Fund D: USD 6.7 bn E: USD 7.7 bn Total: USD 42.8 bn 42 Source: SP as of Mar-2016. Fx (CLP/USD): 675.10.
Slide 43: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 43
Slide 44: 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 45: Company Presentation Q1-2016 Results
Company Presentation Q1-2016 Results May 2016