Slide 1: Company Presentation Q3-2017 Results
Company Presentation Q3-2017 Results September 2017
Slide 2: Agenda
Agenda 2017 Highlights Appendix Recent Events 2
Slide 3: Agenda
Agenda 2017 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) 636,85 as of September 29th, 2017.
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM sept-17 sept-16 Var 17/16 Var 17/16 % Revenues 134,824 124,412 10,412 8.4% Remuneration and Employee Related Expenses (30,010) (27,480) (2,530) 9.2% Other Operating Expenses (24,947) (23,606) (1,341) 5.7% Operating Expenses (54,957) (51,086) (3,871) 7.6% Deprecia
Slide 6: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 17/16 Adj Var 17/16 % Revenues 134,824 11,393 123,431 (981) -0.8% Remuneration and Employee Related Expenses (30,010) (4,052) (25,958) 1,522 -5.5% Other Operating Expenses (24,947) (5,281) (19,666) 3,940 -16.7
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM sept-17 % sept-16 % Var 17/16 Var 17/16% Revenues From Fees (Chile) Mandatory (CCICO) 113,305 92.4% 108,261 93.2% 5,043 4.7% APV 4,432 3.6% 3,771 3.2% 661 17.5% CAV 2,535 2.1% 2,281 2.0% 254 11.1% Pensions 2,046 1.7% 1,768 1.5% 278 15.8% Other Fees 282 0.2% 29 0.0% 253 860.
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM sept-17 % sept-16 % Var 17/16 Var 17/16% Administrative Employees Remuneration (14,444) 48.1% (13,628) 49.6% (815) 6.0% Sales Employees Remuneration (8,742) 29.1% (8,676) 31.6% (66) 0.8% Employee Short-Term Benefits (4,218) 14.1% (3,376) 12.3% (843) 25.0% Post-Emp
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: 2017 Consolidated Balance Sheet
2017 Consolidated Balance Sheet CLP MM sept-17 dic-16 Var % Cash and Equivalents 45,908 43,629 5.2% Other Current Assets 3,377 47,693 -92.9% Total Current Assets 49,285 47,737 3.2% Reserve Requirements 345,368 311,144 11.0% Other Non Current Assets 41,175 37,480 9.9% Total Non Current Assets 386,544
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 ago- 17 9,25% 7,79% 5,33% 3,20% 2,16% 3,47% 3,52% 3,30% 2,73% 2,21% 7,16% 6,10% 5,69% 4,84% 3,82% abr- 17 12,97 11,41 9,03 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' Sep. 2017 / Sep. 2016 Habitat Integra Prima Profuturo Fund 0 5,09% 4,95% 4,74% 4,88% Fund 1 8,25% 7,15% 7,33% 6,65% Fund 2 10,49% 9,44% 9,15% 9,09% Fund 3 10,28% 9,40% 8,60% 9,01% Source: Superintendencia de Banca, Se
Slide 16: Agenda
Agenda 2017 Highlights Appendix 16
Slide 17: Stock Performance
Stock Performance 1985-2017YTD Market Cap CLP 1000 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high share price of CLP 1,000 900 Dec 31th, 2016: 800 share price of CLP 800 700 2010: CChC purchases Citigroup’s shares and then re-sells 14%; 600 Mkt Cap: CLP 475,000 MM 500 198
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 Sep-2017 Fx (CLP/USD) 636,85 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 11.9% higher than Salary Base has grown at: industry average, as of Sep-2017 7.0% per year since Sep-04 6.6% per year since Sep-09 Source: SP as of Sep-2017.
Slide 21: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 24,7% 26,2% 23,4% 21,0% 20,2% 25% 16,5% 20% 14,9% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Sep-2017 Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 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 Sep-2017) MS (%) Contributors (Avg. LTMSep-2017) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Planv
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 Sep-2017.
Slide 25: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 2.000.000 1.835.234 1.800.000 1.601.749 1.600.000 1.400.000 1.200.000 1.000.000 800.000 682.436 600.000 528.731 400.000 200.000 106.939 19.482 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as indu
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 – 2017
AFP Industry Composition: 1981 – 2017 1981 1990 1994 1995 1998 2004 2008 2017 (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 1.4 bn4 Chilean Construction Chamber (Cámara Employees: 1,7611 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 Sep-15 Sep-17 2.3%1.8%1.6% Sep-15 Sep-17 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 780th customer visits in our branches Branch until September 2017. Offices Nationwide coverage currently includes 26 branches, 5 service centers, 22 mobile branches and 3 stands in malls. Up until September 2017, our website transactions Internet were 13.3
Slide 38: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 119 Website thousand contacts from Jan-Sep. 2017 Chat Up until September 2017 over 1MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines l
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In October 2017 over 1.4 MM account statements Statements were sent to our affiliates 62% of these were emailed Social As of September, 2017 we had 136,401th followers on Facebook and Twitter Networks First AFP to use social networks As of September 2017 H
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 7.7 bn Fund B: USD 8.3 bn Fund C: USD 20.8 bn Fund D: USD 8.4 bn E: USD 9.8 bn Total: USD 55 bn 42 Source: SP as of Sep-2017 Fx (CLP/USD): 636,85
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 Q3-2017 Results
Company Presentation Q3-2017 Results September 2017