Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q2 2013 Earnings Presentation
45 slides from Afp Habitat Sa's earnings presentation, Sep 4, 2013
Slide 1: Company Presentation Q2 2013 Results
Company Presentation Q2 2013 Results September 4th, 2013
Slide 2: Agenda
Agenda 1. Q2 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 2
Slide 3: Agenda
Agenda 1. Q2 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 3
Slide 4: Income Statement
Income Statement CLP MM H1 2013 H1 2012 Var 13/12 Var 13/12 % Total Revenues up 2.8%. Revenues From Fees up 4.8% despite fee reduction Revenues 63,534 61,816 1,718 2.8% (pro forma revenues from fees up 12.2%). Remuneration and Employee Related Expenses (12,301) (10,824) (1,477) 13.6% Other Operating
Slide 5: 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 63,534 - 63,534 1,718 2.8% Remuneration and Employee Related Expenses (12,301) (457) (11,845) (1,020) 9.4% vs 13.6% Other Operating Expenses (12,439) (948) (11,491) (2,623) 29.6%
Slide 6: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM H1 2013 % H1 2012 % Var 13/12 Var 13/12 % Administrative Employees Remuneration 6,893 56.0% 5,734 53.0% 1,160 20.2% Sales Employees Remuneration 2,862 23.3% 2,703 25.0% 159 5.9% Employee Short-Term Benefits 1,633 13.3% 1,541 14.2% 92 6.0% Post-Employment Benefits
Slide 7: 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 12 Branches opening 22 mobile branches on Saturday Coverage: 176 counties mornings (comunas) New web services for Website chat service voluntary savings Business hours Online Appointment extension in the call
Slide 8: Revenues from Fees Breakdown
Revenues from Fees Breakdown Jun-10 Jun-13 1.8% 1.7% 2.3% 1.6% 2.8% 1.3% 94.2% 94.2% Jun-10 Jun-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: Pensions Superintendence (“SP”). AFPs’ financial statements. 8
Slide 9: Balance Sheet
Balance Sheet CLP MM Jun/2013 Mar/2013 Dec/2012 Var Jun/Mar % Var Jun/Dec % Cash and Equivalents 43,220 46,167 55,794 -6.4% -22.5% Other Current Assets 2,445 18,695 4,046 -86.9% -39.6% Total Current Assets 45,665 64,861 59,840 -29.6% -23.7% Reserve Requirements 205,302 204,461 197,779 0.4% 3.8% Othe
Slide 10: Agenda
Agenda 1. Q2 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 10
Slide 11: Stock Performance
Stock Performance 1985-2013YTD 2011-2013YTD Price Volume Traded CLP (Base 100, (CLP MM) 31 Dec-2010) 1000 180 4,000 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high 900 share price of CLP 1,010 160 3,500 800 140 3,000 2010: CChC purchases Citigroup’s shares and then 700 re-
Slide 12: Agenda
Agenda 1. H1 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 12
Slide 13: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Contributors MS (%) MS (%) Affiliates (MM) Contributors (MM) 10 9.3 9.5 30% 6 30% 8.6 8.8 9.0 5.2 5.2 9 8.0 8.4 5.0 7.7 5 26.5% 4.8 8 27% 26.0%26.2%26.2%26.2% 4.3 4.6 4.4 27% 7.0 7.1 7.4 25.4% 24.4% 4.0 25.0% 7 6.3 6.4 6.7 4 23.6% 3.8 26.2% 24.1%24.3% 3.6 23.
Slide 14: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Salary Base USD UF MM per Month 1,300 35 1,200 1,100 30 1,000 25 900 800 20 700 15 600 500 10 Habitat Industry Habitat § Average Monthly Salary 6.8% higher than industry average, as of Jun-13 § Salary Base has grown at 7.4% per year since
Slide 15: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 40% MS (%) Contributors (Avg. LTM June-2013) MS (%) Contributors (Avg. LTM June-2013) 35% 35% Provida Provida 30% 30% 25% 25% Capital Capital 20% 20% 15% 15% Cuprum Cuprum 10% Modelo 10% Modelo 5% 5% Plan
Slide 16: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 26.7% 28.0% 27.4% 25.9% 24.1% 25% 22.4% 19.2% 20% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total (CLP th) 1,000 Jun-2005 Jun-2006 Jun-2007 Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012 Jun-2013 § AFP Habitat has incr
Slide 17: Agenda
Agenda 1. H1 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 17
Slide 18: Voluntary Products
Voluntary Products MS Ranking APV System Habitat Habitat Habitat # Accounts1 833,256 157,344 18.8% 4 AUM 4,597 1,549 33.7% 1 (USD MM)1 MS Ranking CAV System Habitat Habitat Habitat # Accounts1 1,742,657 365,266 21.0% 3 AUM 1,623 576 35.5% 1 (USD MM)1 Source: SP. 1: Information as of Jun-2013. Fx (CL
Slide 19: AFP Habitat: Leader in Voluntary Products
AFP Habitat: Leader in Voluntary Products CLP MM 1,200,000 1,007,617 1,000,000 940,493 800,000 600,000 541,443 399,649 400,000 200,000 22,748 7,816 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM Source: SP, as of Jun-2013. 19
Slide 20: Voluntary AUM Evolution
Voluntary AUM Evolution # of accounts USD MM 600,000 2,500 500,000 2,000 400,000 1,500 300,000 1,000 200,000 500 100,000 0 0 # of Accounts AUM USD MM § APV AUM growth rate Jun-2013/Jun-2012: Habitat: 18.1%; AFP Industry: 9.0% § CAV AUM growth rate Jun-2013/Jun-2012: Habitat: 7.8%; AFP Industry: 4.7%
Slide 21: Agenda
Agenda 1. Q2 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 21
Slide 22: AFP Habitat: Leader in Return on Investment
AFP Habitat: Leader in Return on Investment 1st 2nd 3rd 4th 5th 6th AFP HABITAT Account 12 MONTHS (%) 36 MONTHS (%) 60 MONTHS (%) Statement A B C D E A B C D E A B C D E Apr-2013 3.56 2.85 3.86 4.45 4.43 1.60 2.22 3.03 3.45 4.41 0.17 1.76 3.18 3.73 4.47 Dec-2012 6.15 4.93 4.77 4.05 3.57 2.15 2.98 5.
Slide 23: 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 CA PIT AL_Ra nking AFP CUPRUM_Ranking A F P MODELO_Ranking Ac c o unt s 12 MONT HS 36 MONT HS 60 MONT HS Ac c ount s 12 MONT HS 36 M ONT HS 60 M ONT HS Ac c ount s 12 MONT HS S t at e ment A B C D E A B C D E A B C D E
Slide 24: Agenda
Agenda 1. Q2 2013 Financial Statements 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 24
Slide 25: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 25
Slide 26: 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 27: 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 28: AFPs Product Offering
AFPs Product Offering CCICO (Mandatory Contribution Account) 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%-1.25% of
Slide 29: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 29
Slide 30: Company Overview
Company Overview Snapshot Key Figures § AFP Habitat was founded in 1981, by the § Market Capitalization: USD 1.5 bn2 Chilean Construction Chamber (Cámara § Employees: 1,2431 Chilena de la Construcción, or CChC) § 27 branches, 14 service centers and 22 § CChC controls AFP Habitat through mobile branc
Slide 31: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 31
Slide 32: 2012 Income Statement
2012 Income Statement CLP MM Dec-2012 Dec-2011 Var % Revenues 121,301 114,486 6.0% Gain (Loss) on Reserve Requirements 13,060 -1,846 - Gain (Loss) on Disability Insurance Premium -141 -817 -82.7% Remuneration and Employee Related Expenses -22,626 -20,530 10.2% Depreciation and Amortization -1,907 -1
Slide 33: Dec-2012 Balance Sheet
Dec-2012 Balance Sheet CLP MM Dec-2012 Dec-2011 Var % Current Assets 59,840 49,882 20.0% Non Current Assets 219,180 198,728 10.3% Reserve Requirements 197,779 176,376 12.1% Other Non Current Assets 21,401 22,353 -4.3% TOTAL ASSETS 279,020 248,610 12.2% CLP MM Dec-2012 Dec-2011 Var % Current Liabilit
Slide 34: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 34
Slide 35: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 120.0% 120.0% 0.8% 100.0% 100.0% 80.0% 80.0% 47.9% 60.0% 0.4% 60.0% 1.1% 1.0% 2.6% 26.2% 21.0% 4.3% 40.0% 0.6% 2.1% 40.0% 18.6% 3.7% 20.9% 1.7% 1.7% 9.7% 8.4% 17.4% 16.8% 23.9% 16.8% 55.3% 0.4% 20.0% 20.0% 28.7% 27.6% 30.3% 32.4% 3
Slide 36: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 36
Slide 37: 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 o Total of 700.000 new affiliates expected § Commercial launch took place on June 1st, 2013 § Total investment of approximately USD
Slide 38: Operation in Peru (Cont'd)
Operation in Peru (Cont’d) Economic Overview Demographics § 2012 GDP: USD 200.3 bn1 § Population: 30.1 MM1 § 2012 GDP Growth: 6.3%1 § Workforce: 10.7 MM2 § 2012 Inflation: 2.65%1 § Unemployment: 6.8%* (Lima) § Country risk premium: 135 bps3 Pension Fund Industry Overview Affiliates Contributors Cont
Slide 39: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 39
Slide 40: Contact with our Customers
Contact with our Customers We serviced over 880 thousand customer visits in our Branch branches until July 2013 Offices Nationwide coverage currently includes 27 branches, 14 service centers and 22 mobile branches Up until June 2013, our website visits totaled 2.9 MM Internet & and over 6.0 MM trans
Slide 41: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This new online chat assistance service allowed over 28 Website thousand contacts from Jan-Jun 2013 Chat In H1 2013 over 1.0 MM transactions were serviced Habi-Express through the self-service Habi-Express machines (Self-Service) • 64 self-service machines located
Slide 42: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In February 2013, over 2.0 MM account statements Statements were sent to our affiliates 37% of these were emailed Social As of June 30th, 2013 we had over 1,020 followers on Facebook and Twitter Networks First AFP to use social networks As of April, 2013 H
Slide 43: Appendix
Appendix 1. AFP Industry Overview 2. AFP Habitat Overview 3. 2012 Financial Statements 4. AFPs Operating Cost Structure 5. Operation in Peru 6. Contact with our Customers 7. AFP Habitat Funds Breakdown 43
Slide 44: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 7.3 bn Fund B: USD 7.8 bn Fund C: USD 15.6 bn 17% 22% 19% 20% 39% 9% 13% 15% 13% 59% 28% 46% Fund D: USD 5.6 bn E: USD 5.0 bn 0% 2% 1% 7% 11% 11% Total: USD 41.3 bn 71% 97% Int'l Stocks Local FI Int'l FI Local Stocks Source: SP as of Jul-2013. Fx (CLP/USD): 51
Slide 45: Company Presentation Q2 2013 Results
Company Presentation Q2 2013 Results September 4th, 2013