Slide 1: Company Presentation Q2-2016 Results
Company Presentation Q2-2016 Results September 2016
Slide 2: Agenda
Agenda 2016 Highlights Appendix Recent Events 2
Slide 3: Agenda: 2016 Highlights
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) 661.49 as of June 30th , 2016.
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM Jun-16 Jun-15 Var 16/15 Var 16/15 % Revenues 82.738 75.928 6.811 9,0% Remuneration and Employee Related Expenses (17.879) (16.981) (898) 5,3% Other Operating Expenses (14.842) (14.300) (542) 3,8% Operating Expenses (32.721) (31.281) (1.440) 4,6% Depreciation and
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 82.738 4.628 78.110 2.182 2,9% Remuneration and Employee Related Expenses (17.879) (2.084) (15.795) 1.186 -7,0% Other Operating Expenses (14.842) (2.836) (12.006) 2.294 -16,0% Op
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM Jun-16 % Jun-15 % Var 16/15 Var 16/15% Revenues From Fees (Chile) Mandatory (CCICO) 72.318 93,4% 67.691 93,5% 4.627 6,8% APV 2.467 3,2% 2.302 3,2% 165 7,2% CAV 1.503 1,9% 1.393 1,9% 111 7,9% Pensions 1.153 1,5% 1.017 1,4% 136 13,3% Other Fees 19 0,0% 19 0,0% (0) -1,1% Total
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM Jun-16 % Jun-15 % Var 16/15 Var 16/15 % Administrative Employees Remuneration (8.727) 48,8% (8.205) 48,3% (522) 6,4% Sales Employees Remuneration (5.581) 31,2% (5.497) 32,4% (83) 1,5% Employee Short-Term Benefits (2.190) 12,2% (1.900) 11,2% (291) 15,3% Post-Employ
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 Jun-16 Dec-15 Var % Cash and Equivalents 23.444 41.790 -44% Other Current Assets 4.189 6.267 -33% Total Current Assets 27.633 48.057 -42% Reserve Requirements 289.567 282.261 3% Other Non Current Assets 37.326 22.850 63% Total Non Current Assets 326.893 305.111
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 Apr- 16 - 4.37 - 2.76 - 0.90 0.67 1.46 4.42 3.98 4.71 4.76 4.26 1.79 1.96 3.19 3.86 4.18 Dec - 15 4.03 2.88 2.75 2.40 0.84 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 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
Slide 15: AFP Habitat: Return on Investment Peru
AFP Habitat: Return on Investment Peru 1st 2nd 3rd 4th Annualized Nominal Returns' Jul. 2016 / Jul. 2015 Habitat Integra Prima Profuturo Fund 1 8,41% 6,05% 6,03% 5,19% Fund 2 4,92% 3,83% 4,04% 2,51% Fund 3 1,22% -1,46% -1,66% -1,45% Source: Superintendencia de Banca, Seguros y AFP. Principales Varia
Slide 16: Agenda: 2015 Highlights, Appendix
Agenda 2015 Highlights Appendix 16
Slide 17: 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 17
Slide 18: Stock Performance
Stock Performance 1985-2016YTD CLP • Market Cap: USD 1.0 bn 18 Source: Bolsa de Comercio de Santiago (“BCS”). Information as of September 8th, 2016 Fx (CLP/USD) 660.95.
Slide 19: 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 20: 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 Jun-2016 Fx (CLP/USD) 661.49. 20
Slide 21: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD FX (Pesos/Dollar) UF MM 10.5% Average Monthly Salary 10.5% higher than Salary Base has grown at: industry average, as of Jun-2016 6.9% per year since Jun-04 6.4% per year since Jun-09 Source: SP as of Jun-2
Slide 22: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 25,4% 26,2% 25,7% 22,0% 22,3% 25% 18,3% 16,3% 20% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Jun-2016 Jun-2015 Jun-2014 Jun-2013 Jun-2012 Jun-2011 Jun-2010 Jun-2009 Jun-2008 Jun-2007 AFP Habitat
Slide 23: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 35% 35% 30% Provida 30% Provida MS (%) Contributors (Avg. LTM Jun-2016) MS (%) Contributors (Avg. LTM Jun-2016) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Plan
Slide 24: 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 25: 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 Jun-2016.
Slide 26: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1.600.000 1.493.379 1.496.235 1.400.000 1.200.000 1.000.000 800.000 575.692 600.000 546.887 400.000 200.000 38.242 16.415 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are cons
Slide 27: 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 28: 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 29: AFP Industry Composition: 1981 – 2016
AFP Industry Composition: 1981 – 2016 1981 1990 1994 1995 1998 2004 2008 2016 (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 30: 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 31: 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 32: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.0 bn5 Chilean Construction Chamber (Cámara Employees: 1,6511 Chilena de la Construcción, or CChC) 27 branches, 6 service centers, 22 mobile CChC controls AFP Habitat through branches
Slide 33: Revenues from Fees Breakdown
Revenues from Fees Breakdown Jun-14 Jun-16 2.3%1.8%1.6% Jun-14 Jun-16 AFP 94.2% Industry (exc. Habitat) CCICO APV CAV Pensions Other 33 Source: SP. AFPs’ financial statements.
Slide 34: 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 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 MS% Affiliates (th) Source: Superintendencia de Banca, Seguros y AFP – República del Perú. 36
Slide 37: 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 38: Contact with our Customers
Contact with our Customers We serviced over 594th customer visits in our branches Branch until June 2016 Offices Nationwide coverage currently includes 26 branches, 5 service centers, 22 mobile branches and 3 stands in malls. Up until June 2016, our website transactions were 8.8 Internet MM Includin
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 111 Website thousand contacts from Jan-Jun 2016 Chat Up until June 2016 over 1.4 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines loca
Slide 40: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In April, 2016 over 1.3 MM account statements Statements were sent to our affiliates 47% of these were emailed Social As of June, 2016 we had over 109,344 followers on Facebook and Twitter Networks First AFP to use social networks As of June, 2016 Habitat
Slide 41: 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 42: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 5.6 bn Fund B: USD 6.7 bn Fund C: USD 16.4 bn Fund D: USD 7.1 bn E: USD 7.7 bn Total: USD 45.4 bn 42 Source: SP as of Jun-2016. Fx (CLP/USD): 661.49
Slide 43: 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 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: Recent Events: Reform to the Chilean Pension System
Recent Events Reform to the Chilean Pension System 45
Slide 46: Recent Events
Recent Events • On August 9th, 2016 President Bachelet made her announcement about the Reforms to the Pension System in Chile. 46
Slide 47: Recent Events
Recent Events N° Reform Proposed 6 Eliminate or modify intermediary commissions Measures to increase competition within the system, such as the bidding process for the 7 portfolio of affiliates that allow commisions to be lowered and improve the services of the contributors. 8 Creation of State owne
Slide 48: Recent Events in Peruvian Pension System Legislation
Recent Events in Peruvian Pension System Legislation During the first semester of 2016, the Peruvian Congress approved two laws that allow affiliates to withdraw 95.5% of their accumulated savings from the Private Pension System and the remaining 4.5% will go towards healthcare. These laws will perm
Slide 49: Company Presentation Q2-2016 Results
Company Presentation Q2-2016 Results September 2016