Inversiones La Construccion Sa · BCS:ILC
Inversiones La Construccion Sa — Q1 2025 Earnings Presentation
40 slides from Inversiones La Construccion Sa's earnings presentation, May 2025
Slide 1: Conference Call 1Q25
Conference Call 1Q25 /2025MAY. MAY. /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 1Q25 Milestones & Consolidated Results 3 Zoom-in by Division 4 ILC’s Financial Position 5 Wrap-Up and Conclusions MAY. /2025 3
Slide 4: Context
Chapter Context 01 MAY. /2025 4
Slide 5: 1Q25: Macroeconomic Context
1Q25: MACROECONOMIC CONTEXT IPSA, S&P500 AND PENSION FUND C QUARTERLY MONETARY POLICY RATE (MPR) % RETURNS(1) % IPSA S&P 500 Fund C 15.0% 12.0% 14.0% 8.25% 9.0% 10.2% 7.2% 5,0% 5.1% 6.0% 2.3% 3.0% (4.6%) - 1Q24 1Q25 Jan-24 May-24 Sep-24 Jan-25 May-25 CPI CHILE QUARTERLY VARIATION • Global equity mar
Slide 6: 1Q25 Milestones & Consolidated Results
Chapter 1Q25 Milestones & 02 Consolidated Results MAY. /2025 6
Slide 7: 2025 Milestones
2025 MILESTONES ILC'S RETURN TO THE IPSA INDEX RECOGNITIONS 1. As of March 24th, the company was once again included in Chile’s main stock market index (IPSA), which comprises the country’s 29 most relevant stocks. ANNUAL ORDINARY SHAREHOLDERS' MEETING 2025 2. On April 24th, the Annual Shareholders'
Slide 8: Strong Performance of ILC Stock, Outperforming IPSA in 2024 and YTD 2025
STRONG PERFORMANCE OF ILC STOCK, OUTPERFORMING IPSA IN 2024 AND YTD 2025 ILC STOCK PRICE VS IPSA INDEX 24/03: ILC’s inclusion in the IPSA Stock Price Return 2025 YTD Ch$ Stock Price Return 2024 12.424 ILC Stock Return: +63.2% ILC: +20.3% Dividends: +7.9% (1) Dividend Yield: +7.1% IPSA Return: +25.0%
Slide 9: Our Fundamental Pillars to Achieve Growth 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 MAY. /2025 9
Slide 10: Lower Profit in 1Q25 Due to Global Market Volatility
LOWER PROFIT IN 1Q25 DUE TO GLOBAL MARKET VOLATILITY PROFIT AND ROAE ILC(1) 18.3% 13.8% 12.0% 10.8% 10.6% 17.0% 19.6% 14.0% Ch$ bn. Recurring Profit Extraordinary Profit / Loss -33.2% 12.3 182.6 180.6 129.4 146.6 90.3 91.0 86.5 88.4 59.3 39.6 (32.4) 2017 2018 2019 2020 2021 2022 2023 2024 1Q24 1Q25
Slide 11: 1Q25 Results Executive Summary
1Q25 RESULTS EXECUTIVE SUMMARY PROFIT CONTRIBUTION PER DIVISION 1Q25 VS 1Q24 ILC PROFIT BREAKDOWN Ch$ bn. Ch$ bn. 1Q25 Banco Internacional 10.0 59.3 0.1 Confuturo 5.4 AFP Habitat 13.4 AAISA 2.2 RedSalud 4.0 11.6 Consalud 6.5 (0.8) 39.6 Vida Cámara 1.5 (19.0) (1.7) (2.1) Vivir Seguros 5.6 (5.3) ILC S
Slide 12: Zoom-in by Division
Chapter Zoom-in by 03 Division MAY. /2025 12
Slide 13: Banking
MAY. /2025 Banking @ Banco . internacional LC®
Slide 14: Significant Loan Growth, Third-Highest YoY Increase in the Industry
SIGNIFICANT LOAN GROWTH, THIRD-HIGHEST YOY INCREASE IN THE INDUSTRY BANCO INTERNACIONAL LOANS MARKET SHARE BY SEGMENT(1) +16.2% Total Market US$ bn. Industry: +2.4%(1) Mar-24 Mar-25 Share Mar-25(1) 3% 4.2 Commercial 2.51% 2.85% Mortgages 3% 3.6 10% Loans 1.65% Consumer 7% 87% VS 1.46% Commercial 90%
Slide 15: Establishing a Robust Funding Structure
ESTABLISHING A ROBUST FUNDING STRUCTURE FUNDING STRUCTURE MARCH 2024 VS 2025 Liquid reserves invested in Ch$ bn. Access to local and Chilean government international markets securities and Central Bank 5,011 5,068 instruments Other 11,1% 12,8% liabilities In March 2025, the bank In July 2024, it iss
Slide 16: Higher Loan Spread and Autofin Contribution Offset by End of FCIC
HIGHER LOAN SPREAD AND AUTOFIN CONTRIBUTION OFFSET BY THE END OF FCIC, WHICH WAS STILL IN EFECT DURING 1Q24 GROSS OPERATING RESULT EFFICIENCY RATIO(1) • A 12.6% QoQ increase in gross operating OPERATING EXPENSES income was driven by an improved Ch$ bn. Ch$ bn. +19.7% % -300bps +12.6% spread in comme
Slide 17: Higher Risk Expenses for Commercial and Autofin Loans
HIGHER RISK EXPENSES FOR COMMERCIAL AND AUTOFIN LOANS RISK EXPENSES Ch$ bn. 11.9 • Total risk expenses increased by Ch$4.6 billion 7.4 3.4 0.6 (QoQ), mainly due to higher provisions and write- 2.7 0.5 7.9 offs in commercial banking, along with increased 3.8 provisioning in Autofin. 1Q24 1Q25 Commerc
Slide 18: Improved Loan Spread and Autofin Offset by End of FCIC and Higher Risk Expenses
IMPROVED LOAN SPREAD AND BETTER PERFORMANCE FROM AUTOFIN OFFSET BY THE END OF THE FCIC AND HIGHER RISK EXPENSES BANCO INTERNACIONAL PROFIT & ROAE Ch$ bn. Profit ROAE 18.9% • Improved loan spread and better 18.2% performance from Autofin offset by lower 15.8% 14.9% result due to the end of the FCIC p
Slide 19: Annuities
MAY. /2025 Annuities confuturo LCA:
Slide 20: Sustained Demand for Annuities with Increased Participation by Confuturo
SUSTAINED DEMAND FOR ANNUITIES WITH INCREASED PARTICIPATION BY CONFUTURO ANNUITY RATE VS PROGRAMED WITHDRAWAL RATE ANNUITY INDUSTRY PREMIUMS AND Rate (%) CONFUTURO'S MARKET SHARE 5% Mar. 2025: 3.43% UF MM QoQ 4% GROWTH 3% 14.2% 2% 13.1% Mar. 2025: +16.6% 1% 3.30% 3.5 4.1 - +8.1% 2018 2019 2020 2021
Slide 21: A Flexible Sales Channel Strategy and Enhancing Cost Efficiency
A FLEXIBLE SALES CHANNEL STRATEGY AND ENHANCING COST EFFICIENCY ANNUITIES SOLD BY CHANNEL SG&A AND SG&A OVER AUM(1) 1.62% 1.09% 24% 28% 1.00% 1.00% 28% 28% 0.93% 36% 0.55% 0.49% 0.49% 0.36% 0.36% 40% 30% 28% 42% Ch$ bn. 29% +8.2% 9.2 7.9 7.8 8.4 6.9 42% 44% 35% 36% 30% 1Q21 1Q22 1Q23 1Q24 1Q25 1Q21
Slide 22: Weaker International Markets and Impairment Effects Drive Lower Results
WEAKER INTERNATIONAL MARKETS AND IMPAIRMENT EFFECTS DRIVE LOWER RESULTS Ch$ bn. CONFUTURO INVESTMENT RESULT Excluding CUI • Investment result excluding CUI -16.8% reached Ch$87.9 billion in 1Q25, 105.6 down 16.8% QoQ. The decline 4.2 1.6 was mainly driven by asset 87.9 (6.0) (1.6) (5.8) impairments,
Slide 23: Solid Premium Growth Offset by Lower Investment Result
SOLID PREMIUM GROWTH OFFSET BY LOWER INVESTMENT RESULT FROM WEAKER GLOBAL MARKET PERFORMANCE CONFUTURO PROFIT & ROAE Ch$ bn. 26.7% 26.0% • Solid premium growth, along with a lower investment result 133.1 14.6% 122.7 explained mainly by a high 12.1% 12.4% comparison base in 1Q24 -65,5% 8.4% 86.3 due
Slide 24: Pensions
MAY. /2025 ae Ss ww Pensions HABITAT “Ade.aaisA Gos iLCA8:
Slide 25: Improved Operating Revenues Offset by Lower Returns on Legal Reserves
IMPROVED OPERATING REVENUES DRIVEN BY HIGHER TAXABLE INCOME, OFFSET BY LOWER RETURNS ON LEGAL RESERVES REVENUES TAXABLE INCOME PER CONTRIBUTORS Ch$ bn. CONTRIBUTOR Ch$ Th. #2 Th. of People #3 +5.6% +8.2% -2.2% 62.7 66.2 1,422.6 1,539.5 • As of March 2025, the average 961.0 940.2 taxable income of AF
Slide 26: Higher Revenues in AFP Habitat Peru and Colfondos, Offset by Lower Returns
HIGHER REVENUES IN AFP HABITAT PERU AND COLFONDOS, OFFSET BY OFFSET BY LOWER RETURNS ON LEGAL RESERVES REVENUES LEGAL RESERVE RETURNS REVENUES LEGAL RESERVE RETURNS Ch$ bn. Ch$ bn. Ch$ bn. Ch$ bn. +7.2% +1.8% 4.5 10.1 21.5 21.9 9.4 0.7 (0.3) (0.3) 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 • Lower nomi
Slide 27: Results Primarily Affected by Lower Returns on Legal Reserves
RESULTS PRIMARILY AFFECTED BY LOWER RETURNS ON LEGAL RESERVES AFP HABITAT PROFIT(1) BEFORE TAXES AND ENCAJE EVOLUTION • AFP Habitat’s and AAISA profit Ch$ bn. was primarily driven by lower returns on legal reserves, due to weaker performance of equity- 136.2 144.7 149.6 -5.8% 119.4 118.5 132.9 expos
Slide 28: Health
MAY. /2025 QD VIDACAMARA LCA:
Slide 29: More Complex Mix with Increased Activity in Dental and Outpatient Services
MORE COMPLEX MIX WITH INCREASED ACTIVITY IN DENTAL AND OUTPATIENT SERVICES DROVE HIGHER REVENUES REDSALUD OUTPATIENT AND DENTAL ACTIVITY INDICATORS MEDICAL EXAMS DENTAL CONSULTATION SERVICES MM. MM. Th. +4.4% +12.9% +1.0% 1.2 1.3 2.5 631.1 637.6 2.3 1Q24 1Q25 1Q24 1Q25 1Q24 1Q25 REDSALUD INPATIENT A
Slide 30: EBITDA Margin in RedSalud Grew Due to More Complex Inpatient Mix
EBITDA MARGIN IN REDSALUD GREW MAINLY DUE TO A MORE COMPLEX INPATIENT MIX AND INCREASED EFFICIENCY REDSALUD’S EBITDA MARGIN BREAKDOWN % 11.9% 0.2% 0.1% 0.4% 12.1% (0.3%) (0.2%) • The increase in EBITDA margin was primarily driven by a better mix in the inpatient sector and higher activity in dental
Slide 31: Diversifying Sources of Income
DIVERSIFYING SOURCES OF INCOME REDSALUD’S REVENUE BREAKDOWN BY INSURER % Isapre Fonasa Out of pocket and others 15% 19% 13% 16% 18% 18% 20% 25% 23% • Public insurer Fonasa is gaining increased relevance in the revenue 28% 37% 45% 27% 36% 41% 48% 46% breakdown, reaching 51% share. 51% • RedSalud cont
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. EBITDA EBITDA Margin DENTAL AND OUTPATIENT CENTERS 15.2% 17.7% 13.3% 12.2% 8.6 11.3 11.8% 11.2% 1Q24 1Q25 10.6% 10.8% METROPOLITAN REGION HOSPITALS 7.8% 13.5% 13.5% 87.0 9.5 10.8 75.6 76.7
Slide 33: Recovery of the Average Monthly Contribution in Consalud
RECOVERY OF THE AVERAGE MONTHLY CONTRIBUTION IN CONSALUD CONSALUD AVERAGE MONTHLY CONTRIBUTION Loss Ratio 86.1% 89.3% 97.3% 103.8% 97.4% 86.3% 88.1% UF 5.7 5.7 5.6 5.4 5.2 5.1 5.0 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 AUG/23 ENE/24 MAY/24 SEP/24 OCT/24 GES Price GES Price Superintendency Promulgation I
Slide 34: Decline in Beneficiaries Slowed During Late 2024 and 1Q25
THE DECLINE IN BENEFICIARIES SLOWED DOWN DURING THE LATTER PART OF THE 2024 AND 1Q25 CONSALUD BENEFICIARIES AND MARKET SHARE Th. of People Consalud Beneficiaries Market Share Consalud -19.8% -5.5% -1.6% • The largest decline in 644 beneficiaries occurred during 517 507 2023 and early 2024 498 494 48
Slide 35: Higher Premiums Driven by Beneficiary Growth Offset by Higher Loss Ratio
HIGHER PREMIUMS DRIVEN BY GROWTH IN BENEFICIARIES OFFSET BY HIGHER LOSS RATIO % VIDA CÁMARA LOSS RATIO(1) 9%1% Outpatient 82.7% 86.4% 82.5% Inpatient 76.8% 22% 1Q25 50% Medicines Dental 18% Other 1Q22 1Q23 1Q24 1Q25 Th. of People • Premium income grew by 22.5% VIDA CÁMARA BENEFICIARIES +18.4% aligne
Slide 36: ILC's Financial Position
Chapter Financial Position 04 MAY. /2025 36
Slide 37: Well-Managed Debt Maturity and Liquidity Position
WELL-MANAGED DEBT MATURITY AND LIQUIDITY POSITION ILC (STANDALONE) AMORTIZATION SCHEDULE LIQUIDITY POSITION (MAR-2025) Ch$ bn. Bank Debt ILC-C ILC-H ILC-I ILC-J ILC-K 144-Reg S 144A-Reg S 300 11.4% 225 150 Ch$ Cash & 142.2 bn. Investment Equivalents Portfolio 75 27.2% 61.5% - 2035 2029 2039 2025 202
Slide 38: Wrap-up and Conclusions
Chapter Wrap-up and 05 Conclusions MAY. /2025 38
Slide 39: 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. As of 1Q25 we reached 100 thousand clients and achieved 16.2% YoY loan growth, NEW STAGE significantly outperforming the
Slide 40: Conference Call 1Q25
Conference Call 1Q25 /2025MAY. MAY. /2025 40
Inversiones La Construcción S.A. (ILC) — Q1 2025 Earnings Presentation on 6ix