Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — FY2013 Earnings Presentation
47 slides from Afp Habitat Sa's earnings presentation, March 2014
Slide 1: Company Presentation 2013 Results
Company Presentation 2013 Results March 2014
Slide 2: Agenda
Agenda 2013 Highlights Appendix 2
Slide 3: Agenda
Agenda 2013 Highlights Appendix 3
Slide 4: Trends Post June-2012 Fee Reduction
Trends Post June-2012 Fee Reduction Revenues from Fees (CLP MM) 127,313 117,524 31,924 32,888 30,921 31,581 29,842 29,807 29,549 28,326 1Q 2012 1Q 2013 2Q 2012 2Q 2013 3Q 2012 3Q 2013 4Q 2012 4Q 2013 2012 2013 CCICO Fee (%) 0% 0% 1.36% 1.36% 1.27% 1.27% 1.27% 1.27% 1.27% 1.27% 1Q 2012 1Q 2013 2Q 201
Slide 5: Key Figures
Key Figures Monthly Contributors Monthly Salary Base CLP th 1,182,726 1,180,997 623,974 568,863 2012 2013 2012 2013 Contributors Market Share Contributors Market Share Contributors Market Share Total > CLP 850k & < CLP 1MM pm > CLP 1MM pm 27.2% 27.6% 24.4% 25.6% 25.7% 23.5% 2012 2013 2012 2013 2012
Slide 6: Key Indicators (Cont'd)
Key Indicators (Cont’d) TOTAL AUM1 APV AUM1 CAV AUM1 USD bn USD MM USD MM 1,532 43 1,307 543 498 38 25.9% 26.2% 35.3% 35.9% 33.3% 35.3% 2012 2013 2012 2013 2012 2013 Source: AFP Habitat. (1): Figures in CLP converted to USD at Fx (CLP/USD) 524.61 as of Dec-2013. 6
Slide 7: Consolidated Income Statement
Consolidated Income Statement CLP MM 2013 2012 Var 13/12 Var 13/12 % Revenues 129,379 121,301 8,078 6.7% Total Revenues up 6.7%. Revenues From Fees up 8.3% Remuneration and Employee Related Expenses (26,180) (22,609) (3,571) 15.8% despite fee reduction in Q2 2012. Other Operating Expenses (25,183) (
Slide 8: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 13/12 Adj Var 13/12 % Revenues 129,379 274 129,105 7,804 6.4% vs 15.8% Remuneration and Employee Related Expenses (26,180) (1,624) (24,556) (1,947) 8.6% vs 21.0% Other Operating Expenses (25,183) (2,511) (22,6
Slide 9: Revenues Breakdown
Revenues Breakdown CLP MM 2013 % 2012 % Var 13/12 Var 13/12 % Revenues From Fees (Chile) Mandatory (CCICO) 119,865 94.1% 110,855 94.3% 9,010 8.1% APV 3,641 2.9% 3,031 2.6% 610 20.1% CAV 2,153 1.7% 1,926 1.6% 226 11.7% Pensions 1,626 1.3% 1,705 1.5% (80) -4.7% Other Fees 29 0.0% 7 0.0% 23 338.3% Tota
Slide 10: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM 2013 % 2012 % Var 13/12 Var 13/12 % Administrative Employees Remuneration 14,783 56.5% 12,099 53.5% 2,684 22.2% Sales Employees Remuneration 5,967 22.8% 5,604 24.8% 363 6.5% Employee Short-Term Benefits 3,492 13.3% 3,185 14.1% 307 9.6% Post-Employment Benefits 170
Slide 11: Part of the Operating Expenses increase is due to new services since H2 2012
Part of the Operating Expenses increase is due to new services since H2 2012 Habitat Móvil 13 Branches opening 22 mobile branches on Saturday Coverage: 177 comunas mornings and 191 localidades New web services for Website chat service voluntary savings Business hours Online Appointment extension in
Slide 12: 2013 Consolidated Balance Sheet
2013 Consolidated Balance Sheet CLP MM 2013 2012 Var % Cash and Equivalents 63,159 55,794 13.2% Other Current Assets 3,459 4,046 -14.5% Total Current Assets 66,617 59,840 11.3% Reserve Requirements 220,867 197,779 11.7% Other Non Current Assets 20,923 21,401 -2.2% Total Non Current Assets 241,790 21
Slide 13: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM 140.000 140.000 1 2 9 ,379 1 2 1 ,301 1 1 4 ,486 120.000 120.000 1 0 8 ,949 100.000 100.000 8 4 ,225 8 5 ,648 7 9 ,692 80.000 7 1 ,759 80.000 60.000 60.000 40.000 40.000 20.000 20.000 0 0 2010 2011 2012 2013 2010 2011 2012 2013 EBITDA / R
Slide 14: AFP Habitat: AFP of the Year 2013 by Fund Pro
AFP Habitat: AFP of the Year 2013 by Fund Pro AFP Habitat was awarded the “AFP of the Year 2013” Platinum Performance Award This distinction is for overall performance of the 5 funds In addition, funds C, D and E were granted recognition due to their efficiency in terms of the balance between perfor
Slide 15: AFP Habitat: Leader in Return on Investment
AFP Habitat: Leader in 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 - 13 7. 02 4. 59 4. 84 5. 62 4. 99 0. 50 0. 63 2. 11 3. 47 4. 45 10. 61 8. 89 7. 52 6. 51 5. 72 Aug- 13 4. 79 3. 12 3
Slide 16: AFP Habitat: Leader in Return on Investment (Cont'd)
AFP Habitat: Leader in Return on Investment (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CAPIT AL_Ranking AF P CUPRUM_Ranking AF P MODELO_Ranking Ac c ount s 12 Mo nt hs ( %) 36 Mont hs (%) 60 Mo nt hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) 60 Mont hs (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) St
Slide 17: Agenda
Agenda 2013 Highlights Appendix 17
Slide 18: 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 18
Slide 19: Stock Performance
Stock Performance 1985-2014YTD 2011-2014YTD Price Volume Traded CLP (Base 100, (CLP MM) 1000 31 Dec-2010) 2013: Habitat entered MSCI LATAM 180 4,000 Small Cap Index, reaching historical high share price of CLP 1,010 900 160 3,500 800 2010: CChC purchases Citigroup’s shares and then 140 re-sells 14%;
Slide 20: 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 20
Slide 21: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) MS (%) Total Contributors (MM) MS (%) MS (%) 6 30% 10 9, 3 9, 5 9,6 30% 5,2 5, 3 5,5 8, 6 8,8 9,0 26.5% 5,0 9 8,0 8,4 5 4,6 4, 4 4,8 7, 7 26.0% 26.2% 4,3 27% 8 7,1 7, 4 27% 24.4% 6, 7 7, 0 24.7% 24.5% 25.4% 26.2% 4,0 7 6, 3
Slide 22: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD UF MM 1,300 35 1,200 7.7% 30 1,100 1,000 25 900 20 800 700 15 600 500 10 Habitat Habitat Industry § Average Monthly Salary 7.7% higher § Salary Base has grown at: than industry average, as of Dec-2013 § 8.1% per ye
Slide 23: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 27.8% 27.2% 25.8% 25.7% 25% 23.5% 20.9% 20% 18.2% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total (CLP th) 1,000 Dec-2005 Dec-2006 Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 § AFP Habitat has incr
Slide 24: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 40% MS (%) Contributors (Avg. LTM December-2013) MS (%) Contributors (Avg. LTM December-2013) 35% 35% Provida Provida 30% 30% 25% 25% Capital Capital 20% 20% 15% 15% Modelo Cuprum Cuprum 10% 10% Modelo 5%
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: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) 1,000 898 25% 5,000 40% 19.2% 35.3% 900 798 33.3% 4,342 4,500 35% 18.7% 18.9% 30.7% 29.2% 30.7% 4,090 800 20% 4,000 29.0% 28.2% 16.2% 693 27.4% 27.9% 3, 782 3,744 30% 700 14.9% 15.0% 15.4% 15.2% 15.2% 15.3% 3,
Slide 27: AFP Habitat: Leader in Voluntary Products
AFP Habitat: Leader in Voluntary Products CLP MM 1,200,000 1,088,649 1,014,435 1,000,000 800,000 600,000 522,328 415,295 400,000 200,000 24,331 7,812 0 Habitat Capital Cuprum Modelo Planvital Provida § Voluntary Products = CAV & APV AUM § The regulator as well as industry players are constantly seek
Slide 28: 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 28
Slide 29: AFP Industry Overview
AFP Industry Overview Chilean legislation (Law Decree 3500) established a compulsory individual 1980 capitalization system with privately-managed pension funds (AFP) 1981 New AFP system launched with 12 players 1985 AFPs authorized to invest in corporate stocks 2000 In accordance with regulatory mod
Slide 30: AFP Industry Composition: 1981 – 2013
AFP Industry Composition: 1981 – 2013 1981 1990 1994 1995 1998 2004 2008 2013 (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 of UNION UNION UNION only two A
Slide 31: 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: 0.77%-2.36% of salary base the AFP (Habitat = 1.27%) § Fee: 0.95%
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: Company Overview
Company Overview Snapshot Key Figures § AFP Habitat was founded in 1981, by the § Market Capitalization: USD 1.2 bn3 Chilean Construction Chamber (Cámara § Employees: 1,2541 Chilena de la Construcción, or CChC) § 27 branches, 8 service centers and 22 mobile § CChC controls AFP Habitat through branch
Slide 34: Revenues from Fees Breakdown
Revenues from Fees Breakdown Jun-10 Dec-13 1.7% 1.3% 1.8% 2.9% 2.3% 1.6% 0.0% 94.1% 94.2% Jun-10 Dec-13 1.1% 0.9% 2.0% 1.6% 1.8% 1.7% AFP Industry (exc. Habitat) 95.2% 95.6% CCICO APV CAV Pensions Other Source: SP. AFPs’ financial statements. 34
Slide 35: 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 35
Slide 36: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 110% 110% 100% 100% 90% 90% 50.8% 80% 80% 70% 14. 9% 70% 1.3% 60% 60% 6.2% 1. 1% 50% 28. 0% 50% 27.2% 5. 1% 24. 1% 2.3% 25.2% 40% 1. 7% 0. 6% 40% 1.7% 2. 0% 12.0% 20. 8% 30% 10.3% 30% 64.2% 17. 6% 23. 9% 17.6% 0.4% 20% 20% 35.4% 31
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: Operation in Peru
Operation in Peru • On December 20, 2012, AFP Habitat was awarded the first new affiliates auction in Peru • AFP Habitat to receive all new entrants for a 2-year period • Commercial launch took place on June 1st, 2013 • Total investment of approximately USD 20 MM during the first 4 years Mixed Affil
Slide 39: 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 39
Slide 40: Contact with our Customers
Contact with our Customers We serviced over 1.4 MM customer visits in our Branch branches until December 2013 Offices Nationwide coverage currently includes 27 branches, 8 service centers and 22 mobile branches Up until December 2013, our website visits totaled 6.9 Internet & MM and over 12 MM trans
Slide 41: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This new online chat assistance service allowed over 48 Website thousand contacts from Jan-Dec 2013 Chat Up until December 2013 over 1.8 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machin
Slide 42: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In December 2013, over 2.4 MM account Statements statements were sent to our affiliates 34% of these were emailed Social As of December, 2013 we had over 1,759 followers on Facebook and Twitter Networks First AFP to use social networks As of December, 2013
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: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 7.6 bn Fund B: USD 7.9 bn Fund C: USD 15.8 bn 14.1% 23.2% 17.2% 14.0% 40.1% 8.2% 12.9% 14.3% 14.1% 63.8% 29.9% 48.4% Fund D: USD 5.9 bn E: USD 5.5 bn 5.2% 1.8% 2.4% 0.6% 13.1% 11.6% Total: USD 42.7 bn 70.1% 95.2% Int'l Stocks Local FI Int'l FI Local Stocks Sou
Slide 45: 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 45
Slide 46: 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 47: Company Presentation 2013 Results
Company Presentation 2013 Results March 2014