Inversiones La Construccion Sa · BCS:ILC
Inversiones La Construccion Sa — FY2024 Earnings Presentation
41 slides from Inversiones La Construccion Sa's earnings presentation, March 2025
Slide 1: Conference Call FY 2024
Conference Call FY 2024 /2025MAR. MAR. /2025 1
Slide 2: Disclaimer
DISCLAIMER Forward-looking statements are based on the beliefs and assumptions of ILC’s management, and on information currently available. They involve risks and uncertainties because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investo
Slide 3: Agenda
AGENDA 1 Context 2 2024 Milestones & Consolidated Results 3 Zoom-in by Division 4 ILC’s Financial Position 5 Wrap-Up and Conclusions MAR. /2025 3
Slide 4: Context
Chapter Context 01 MAR. /2025 4
Slide 5: 2024: Macroeconomic Context
2024: MACROECONOMIC CONTEXT IPSA, S&P500 AND PENSION FUND C ANNUAL RETURNS(1) MONETARY POLICY RATE (MPR) EoP, % % IPSA S&P 500 Fund C 11.25% 12% 8.25% 24.2% 23.3% 8% 17.8% 5.00% 4% 8.0% 8.3% 7.9% - Jan-23 May-23 Sep-23 Jan-24 May-24 Sep-24 Jan-25 2023 2024 CPI CHILE QUARTERLY VARIATION • In 2024, th
Slide 6: Pension System Regulatory Changes in Chile
PENSION SYSTEM REGULATORY CHANGES IN CHILE CURRENT SITUATION PENSION REFORM (MAIN CHANGES) • PGU of Ch$ 250,000(1) • Individual Pillar: • State contribution of Ch$ 214,296 to the poorest 90% (PGU)(1) o 10% of the taxable salary, paid by the employee • Mandatory: 10% of gross salary, charged to the o
Slide 7: 2024 Milestones & Consolidated Results
Chapter 2024 Milestones & 02 Consolidated Results MAR. /2025 7
Slide 8: Key Advances in 2024 Towards Our Goals
KEY ADVANCES IN 2024 TOWARDS OUR GOALS 2024 MILESTONES • Increased stake to 78.2% NEW STAGE • Agreement to increase the stake to 100% within 3Y • First bond issuance on the Swiss market • Total loans grew 16.1% YoY, outperforming the industry’s 3.9% growth Growth in Financial Business • Capital incr
Slide 9: ESG Results Over Time: ILC Positioned 5th Globally in the Industry
ESG RESULTS OVER TIME: ILC POSITIONED 5th GLOBALLY IN THE INDUSTRY EVOLUTION OF ILC’S DJSI SCORE +62% ILC’s Entry into the 5th Place Yearbook Globally ILC’s Entry into the DJSI 98 99 96 84 86 74 76 70 73 63 67 49 50 50 45 31 35 25 16 13 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Score Percent
Slide 10: Our Fundamental Pillars to Achieve Consistency
OUR FUNDAMENTAL PILLARS TO ACHIEVE GROWTH CONSISTENCY ESG PROFITABILITY Our Purpose: Be leaders in the construction of social and economic value that improves people's quality of life STRONG FLEXIBILITY FINANCIAL POSITION MAR. /2025 10
Slide 11: Profit in Line with 2023 Record, Adjusted for IFRS Liability
PROFIT IN LINE WITH 2023 RECORD, ADJUSTED FOR IFRS LIABILITY APPLICATION FROM THE SHORT LAW OF ISAPRES PROFIT AND ROAE ILC(1) 18.3% 13.8% 12.0% 10.8% 10.6% 17.0% 19.6% 14.0% • ILC achieved a profit of Ch$180.6 billion before adjustments from the Ch$ bn. Recurring Profit Extraordinary Profit / Loss a
Slide 12: 2024 Results Executive Summary
2024 RESULTS EXECUTIVE SUMMARY PROFIT CONTRIBUTION PER DIVISION 2024 VS 2023 ILC PROFIT BREAKDOWN Ch$ bn. 2024 Ch$ bn. Banco Internacional 37.8 2.5 0.6 Confuturo 71.3 15.6 3.4 AFP Habitat 56.5 182.6 0.5 AAISA 15.1 RedSalud 16.0 Accounting 30.8 liability 148.2 Consalud (49.5) Short Law of (32.4) (10.
Slide 13: Zoom-in by Division
Chapter Zoom-in by 03 Division MAR. /2025 13
Slide 14: Banking
MAR. /2025 Banking @ Banco . internacional iKC
Slide 15: Significant Growth in Loans and Improvement in Market Share
SIGNIFICANT GROWTH IN LOANS AND IMPROVEMENT IN MARKET SHARE BANCO INTERNACIONAL LOANS MARKET SHARE BY SEGMENT(1) US$ bn. +16.1% Total Market Industry: +3.9%(1) 2023 2024 Share 2024(1) 3% 4.1 Commercial 2.51% 2.77% Mortgages 3% 3.5 9% Loans 1.62% Consumer 7% 88% VS Commercial 90% Consumer 0.78% 1.20%
Slide 16: Establishing a Robust Funding Structure
ESTABLISHING A ROBUST FUNDING STRUCTURE FUNDING STRUCTURE 2023 - 2024(1) Ch$ bn. Liquid reserves invested in 4,448 4,377 Access to local and Chilean government international markets securities and Central Bank instruments Banks 14% 19% In 2023, a US$ 255 MM A/B In July 2024, it issued its first loan
Slide 17: Growth and Higher Loan Spread Offset by End of FCIC
GROWTH AND HIGHER LOAN SPREAD OFFSET BY THE END OF FCIC AND CONSOLIDATION EFFECTS GROSS OPERATING RESULT EFFICIENCY RATIO(1) • Growth and improved spread in OPERATING EXPENSES Ch$ bn. commercial and consumer loans, partially Ch$ bn. +36.5% +1,044 bps % offset by the end of FCIC +10.7% 105.3 190.3 •
Slide 18: Lower Risk Expenses for Commercial Loans Partially Offset by Autofin
LOWER RISK EXPENSES FOR COMMERCIAL LOANS PARTIALLY OFFSET BY FULL-YEAR AUTOFIN CONSOLIDATION RISK EXPENSES Ch$ bn. Commercial Consumer (Exc. Autofin) Autofin Mortgage • Total risk expenses decreased by Ch$3.8 bn (YoY) 27.6 due to lower provisions for commercial loans. 23.7 6.0 9.1 • Release of addit
Slide 19: Strong Loan Spread and Lower Risk Expenses Offset by FCIC Termination
STRONG LOAN SPREAD AND LOWER RISK EXPENSES OFFSET BY FCIC TERMINATION AND HIGH COMPARISON BASE BANCO INTERNACIONAL PROFIT & ROAE Ch$ bn. - 8.9% Profit ROAE 18.9% • Higher loan spread, lower risk expenses, 18.2% and increased contribution from Autofin 15.8% offset by a lower result due to the end of
Slide 20: Annuities
MAR. /2025 Annuities confuturo iKC
Slide 21: Annuity Market Maintained High Dynamism
ANNUITY MARKET MAINTAINED HIGH DYNAMISM ANNUITY INDUSTRY PREMIUMS AND ANNUITY RATE VS PROGRAMED WITHDRAWAL RATE Rate (%) CONFUTURO'S MARKET SHARE Dec. 2024: 5% 14.8% 4.14% UF MM 14.5% ANNUAL 4% GROWTH 3% Dec. 2024: 9.5% 16.1 2% 15.2 +6.2% 1% 3.25% 7.0 - +3.6% 89.6 92.8 2018 2019 2020 2021 2022 2023
Slide 22: Higher Investment Returns Along with Fixed Income Impairments Releases
HIGHER INVESTMENT RETURNS ALONG WITH FIXED INCOME IMPAIRMENTS RELEASES CONFUTURO INVESTMENT RESULT Excluding CUI +18.4% +14.9% Ch$ bn. • Investment result grew by 18.4% 26.0 8.1 5.7 478.6 YoY (excluding CUI), reaching 16.3 9.6 416.6 (0.3) Ch$478.6 billion. This increase (3.2) (0.1) was primarily dri
Slide 23: Results Attributed to Higher Premium Income and Better Investment Performance
RESULTS MAINLY ATTRIBUTED TO HIGHER PREMIUM INCOME AND BETTER PERFORMANCE OF INVESTMENT PORTFOLIO CONFUTURO PROFIT & ROAE Ch$ MM 26.7% +23.2% 26.0% • Higher premium income, along with improved returns 133.1 14.6% 122.7 from the alternative 12.1% 12.4% investment portfolio and fixed 8.4% 86.3 70.0 in
Slide 24: Pensions
MAR. /2025 ae Ss ww Pensions HABITAT “Ade.aaisA Gos iKC
Slide 25: Improved Operating Result, Higher Returns on Legal Reserves
IMPROVED OPERATING RESULT, ALONG WITH HIGHER RETURNS ON LEGAL RESERVES REVENUES TAXABLE INCOME PER CONTRIBUTORS CONTRIBUTOR Ch$ bn. Ch$ Th. #2 Th. of People #3 +5.1% +7.5% -2.3% 239.4 251.5 1,391.0 1,495.2 974 952 • The average taxable income of AFP Habitat Chile contributors was 21.6% higher than t
Slide 26: Better Results Explained by Higher Returns on Legal Reserves
BETTER RESULTS MAINLY EXPLAINED BY HIGHER RETURNS ON LEGAL RESERVES AFP HABITAT PROFIT EVOLUTION Ch$ bn. +6.5% • The result was primarily driven by higher fees aligned with the increase in taxable income and returns on legal 135.1 129.9 131.6 140.1 reserves due to the better 128.7 108.8 90.9 perform
Slide 27: Higher Revenues in AFP Habitat Peru and Colfondos
HIGHER REVENUES IN AFP HABITAT PERU AND COLFONDOS REVENUES LEGAL RESERVE RETURNS REVENUES LEGAL RESERVE RETURNS Ch$ bn. Ch$ bn. Ch$ bn. Ch$ bn. +22.1% -40.3% +43.8% +21.6% 37.7 3.1 87.7 16.2 30.8 13.3 61.0 1.9 2023 2024 2023 2024 2023 2024 2023 2024 • Revenues increase by 22.1% compared to 2023, pri
Slide 28: Improved Pension Performance in Peru and Colombia
IMPROVED PENSION PERFORMANCE IN PERU AND COLOMBIA, SUPPORTED BY HIGHER FEE REVENUES AAISA PROFIT EVOLUTION +20.0% Ch$ bn. • The result was mainly explained by higher fee revenues and returns on legal reserves, partially 37.4 offset by higher operating expenses 31.1 20.1 3.9 2021 2022 2023 2024 MAR.
Slide 29: Health
MAR. /2025 QD VIDACAMARA iKC
Slide 30: EBITDA Margin in RedSalud Grew on Inpatient Mix and Efficiency
EBITDA MARGIN IN REDSALUD GREW MAINLY DUE TO A MORE COMPLEX INPATIENT MIX AND INCREASED EFFICIENCY % REDSALUD’S EBITDA MARGIN BREAKDOWN 1.0% 0.8% 0.1% 11.8% (0.5%) 10.8% (0.4%) • The increase in EBITDA margin was primarily driven by a better mix in the inpatient sector and higher activity in dental
Slide 31: Reducing Regulatory Risk by Diversifying Sources of Income
REDUCING REGULATORY RISK BY DIVERSIFYING SOURCES OF INCOME REDSALUD’S REVENUE BREAKDOWN BY INSURER % Isapre Fonasa Out of pocket and others 15% 19% 13% 16% 20% 25% 23% • Public insurer Fonasa is gaining increased relevance in 28% 37% 45% 27% 36% 41% 48% the revenue breakdown, reaching 48% share. • R
Slide 32: EBITDA Grew Across All Segments of the Network
EBITDA GREW ACROSS ALL SEGMENTS OF THE NETWORK EBITDA AND EBITDA MARGIN REDSALUD EBITDA BY CENTER TYPE Ch$ bn. DENTAL AND OUTPATIENT EBITDA EBITDA Margin CENTERS 14.8% 16.0% +20.9% 33.9 38.8 13.3% 2023 2024 12.2% 11.8% 11.2% 10.8% 10.6% METROPOLITAN REGION 10.0% HOSPITALS 10.7% 12.1% 7.8% 29.2 37.0
Slide 33: Extraordinary Premium Helping Recover Monthly Contributions in Consalud
EXTRAORDINARY PREMIUM HELPING TO RECOVER AVERAGE MONTHLY CONTRIBUTIONS IN CONSALUD CONSALUD’S AVERAGE MONTHLY CONTRIBUTION AND LOSS RATIO Loss Ratio 87.4% 89.1% 86.1% 89.3% 97.3% 103.8% 97.4% 86.3% Ch$ 206,114 204,976 208,692 199,926 201,258 195,507 194,446 186,581 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 34: Decline in Beneficiaries Slowed in Latter Part of Year
THE DECLINE IN BENEFICIARIES SLOWED DOWN DURING THE LATTER PART OF THE YEAR CONSALUD BENEFICIARIES AND MARKET SHARE Th. Consalud Beneficiaries Market Share Consalud -19.8% -5.5% -1.2% • The largest decline in 20.9% beneficiaries occurred during 19.0% 19.0% 19.0% 19.1% 19.1% 2023 and early 2024 • Con
Slide 35: Higher Result in Health Insurance Driven by Beneficiary Growth
HIGHER RESULT IN HEALTH INSURANCE DRIVEN BY GROWTH IN BENEFICIARIES VIDA CÁMARA LOSS RATIO % 9% 1% Outpatient 89.3% 87.3% Inpatient 86.5% 81.5% 84.9% 83.9% 21% 68.1% 2024 49% Medicines Dental 19% Other 2018 2019 2020 2021 2022 2023 2024 VIDA CÁMARA BENEFICIARIES Th. of People • Premium income grew b
Slide 36: Financial Position
Chapter Financial Position 04 MAR. /2025 36
Slide 37: Well-Managed Debt Maturity and Liquidity Position
WELL-MANAGED DEBT MATURITY AND LIQUIDITY POSITION ILC (STANDALONE) AMORTIZATION SCHEDULE LIQUIDITY POSITION (DEC-2024) Ch$ bn. Bank Debt ILC-C ILC-H ILC-I ILC-J ILC-K 144A- Reg S 144A-Reg S 16.7% 300 225 150 Ch$ Investment 135.6 bn. Portfolio 75 Cash & 58.9% Equivalents - 24.3% 2025 2026 2027 2031 2
Slide 38: Strong Performance of ILC Stock, Outperforming IPSA
STRONG PERFORMANCE OF ILC STOCK, OUTPERFORMING IPSA IN 2024 AND YTD IN 2025 ILC STOCK PRICE VS IPSA INDEX Stock Price Return 2024 Ch$ ILC IPSA 9,678 • ILC Stock Return: +20.3% • Dividends: +7.1% 7,614 • IPSA Return: 8.3% 7,586 6,330 6,710 6,198 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 MAR. /
Slide 39: Wrap-up and Conclusions
Chapter Wrap-up and 05 Conclusions MAR. /2025 39
Slide 40: Key Advances Towards Our Goals
KEY ADVANCES TOWARDS OUR GOALS • We continue to increase our stake in this strategic sector, reinforcing our commitment to growth, retail financing expansion, and diversification. NEW STAGE • We play a leading role in a highly dynamic Growth in Financial Business industry, driven by organic growth l
Slide 41: Conference Call FY 2024
Conference Call FY 2024 /2025MAR. MAR. /2025 41
Inversiones La Construcción — FY2024 Earnings Presentation on 6ix