Afp Habitat Sa · BCS:HABITAT

Afp Habitat Sa — Q3 2016 Earnings Presentation

49 slides from Afp Habitat Sa's earnings presentation, November 2016

  1. Slide 1: Company Presentation Q3-2016 Results

    Company Presentation Q3-2016 Results November 2016

  2. Slide 2: Agenda

    Agenda 2016 Highlights Appendix Recent Events 2

  3. Slide 3: Agenda

    Agenda 2016 Highlights Appendix 3

  4. 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) 659.08 as of September 30th , 2016.

  5. Slide 5: Consolidated Income Statement

    Consolidated Income Statement CLP MM Sep-16 Sep-15 Var 16/15 Var 16/15 % Revenues 124,412 114,165 10,247 9.0% Remuneration and Employee Related Expenses (27,480) (26,057) (1,423) 5.5% Other Operating Expenses (23,606) (22,772) (834) 3.7% Operating Expenses (51,086) (48,829) (2,257) 4.6% Depreciation

  6. 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 124,412 7,397 117,015 2,850 2.5% Remuneration and Employee Related Expenses (27,480) (3,052) (24,428) 1,629 -6.3% Other Operating Expenses (23,606) (4,642) (18,964) 3,808 -16.7%

  7. Slide 7: Revenues Breakdown

    Revenues Breakdown CLP MM Sep-16 % Sep-15 % Var 16/15 Var 16/15% Revenues From Fees (Chile) Mandatory (CCICO) 108,261 93.2% 101,317 93.3% 6,944 6.9% APV 3,771 3.2% 3,509 3.2% 263 7.5% CAV 2,281 2.0% 2,137 2.0% 144 6.7% Pensions 1,768 1.5% 1,554 1.4% 214 13.8% Other Fees 29 0.0% 29 0.0% 1 2.5% Total

  8. Slide 8: Operating Expenses Breakdown

    Operating Expenses Breakdown CLP MM Sep-16 % Sep-15 % Var 16/15 Var 16/15 % Administrative Employees Remuneration (13,628) 49.6% (12,364) 47.5% (1,264) 10.2% Sales Employees Remuneration (8,676) 31.6% (8,458) 32.5% (218) 2.6% Employee Short-Term Benefits (3,376) 12.3% (3,276) 12.6% (100) 3.1% Post-E

  9. 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

  10. Slide 10: 2016 Consolidated Balance Sheet

    2016 Consolidated Balance Sheet CLP MM Sep-16 Dec-15 Var % Cash and Equivalents 39,597 42,117 -6.0% Other Current Assets 2,987 5,939 -49.7% Total Current Assets 42,584 48,057 -11.4% Reserve Requirements 305,309 282,261 8.2% Other Non Current Assets 39,347 22,850 72.2% Total Non Current Assets 344,65

  11. 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.

  12. 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 Aug- 16 2.10 2.89 2.80 2.49 2.89 7.27 6.55 6.52 5.69 4.46 5.13 4.46 4.76 4.61 3.93 Apr- 16 - 4,37 - 2,76 - 0,90 0,67 1,46 4,4

  13. Slide 13: Return on Investment Chile (Cont'd)

    AFP Habitat: Return on Investment Chile (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CUPRUM_Ranking AF P CAPIT AL_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

  14. 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

  15. Slide 15: AFP Habitat: Return on Investment Peru

    AFP Habitat: Return on Investment Peru 1st 2nd 3rd 4th Annualized Nominal Returns' Sep. 2016 / Sep. 2015 Habitat Integra Prima Profuturo Fund 1 15.68% 13.06% 13.98% 11.65% Fund 2 17.34% 16.08% 16.00% 14.17% Fund 3 19.80% 16.83% 15.65% 16.29% Source: Superintendencia de Banca, Seguros y AFP. Principa

  16. Slide 16: Agenda

    Agenda 2016 Highlights Appendix 16

  17. 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

  18. 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.

  19. 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

  20. 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 Sep-2016 Fx (CLP/USD) 659.08. 20

  21. Slide 21: 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-2016  6.8% per year since Sep-04  6.4% per year since Sep-09 Source: SP as of Sep-2

  22. Slide 22: Market Share by Salary Base

    Market Share by Salary Base MS (%) Monthly Contributors 30% 26,0% 26,3% 25,1% 21,9% 21,8% 25% 17,9% 16,2% 20% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Sep-2016 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007  AFP Habitat

  23. 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 Sep-2016) MS (%) Contributors (Avg. LTM Sep-2016) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Plan

  24. 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

  25. 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 Sep-2016.

  26. Slide 26: AFP Habitat: Voluntary Products

    AFP Habitat: Voluntary Products CLP MM 1.800.000 1.577.719 1.600.000 1.542.323 1.400.000 1.200.000 1.000.000 800.000 597.247 600.000 558.353 400.000 200.000 41.174 18.617 - Habitat Capital Cuprum Modelo Planvital Provida  Voluntary Products = CAV & APV AUM  The regulator as well as industry player

  27. 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

  28. 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

  29. 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

  30. 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%

  31. 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

  32. Slide 32: Company Overview

    Company Overview Snapshot Key Figures  AFP Habitat was founded in 1981, by the  Market Capitalization: USD 1.2 bn5 Chilean Construction Chamber (Cámara  Employees: 1,7021 Chilena de la Construcción, or CChC)  26 branches, 6 service centers, 22 mobile  CChC and Prudential Financial co-control AF

  33. Slide 33: Revenues from Fees Breakdown

    Revenues from Fees Breakdown Sep-14 Sep-16 2.3%1.8%1.6% Sep-14 Sep-16 AFP 94.2% Industry (exc. Habitat) CCICO APV CAV Pensions Other 33 Source: SP. AFPs’ financial statements.

  34. 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

  35. 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

  36. 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

  37. 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

  38. Slide 38: Contact with our Customers

    Contact with our Customers We serviced over 892th customer visits in our branches Branch until September 2016 Offices Nationwide coverage currently includes 26 branches, 5 service centers, 22 mobile branches and 3 stands in malls. Up until September 2016, our website transactions Internet were 14.2

  39. Slide 39: Contact with our Customers (Cont'd)

    Contact with our Customers (Cont’d) This online chat assistance service allowed over 180 Website thousand contacts from Jan-Sept. 2016 Chat Up until September 2016 over 2.0 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machin

  40. Slide 40: Contact with our Customers (Cont'd)

    Contact with our Customers (Cont’d) Account In October, 2016 over 1.4 MM account statements Statements were sent to our affiliates 58% of these were emailed Social As of September, 2016 we had over 115,819 followers on Facebook and Twitter Networks First AFP to use social networks As of September, 2

  41. 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

  42. Slide 42: AFP Habitat Funds Breakdown

    AFP Habitat Funds Breakdown Fund A: USD 5.4 bn Fund B: USD 6.6 bn Fund C: USD 16.9 bn Fund D: USD 7.4 bn E: USD 10.8 bn Total: USD 47 bn 42 Source: SP as of Sep-2016. Fx (CLP/USD): 659.08

  43. 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

  44. 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

  45. Slide 45: Recent Events: Reform to the Chilean Pension System

    Recent Events Reform to the Chilean Pension System 45

  46. 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

  47. 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

  48. 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

  49. Slide 49: Company Presentation Q3-2016 Results

    Company Presentation Q3-2016 Results November 2016

AFP Habitat — Q3 2016 Earnings Presentation on 6ix