Inversiones La Construccion SA · BCS:ILC

Inversiones La Construccion SA — Investor Presentation (September 2014)

29 slides from Inversiones La Construccion SA's investor presentation, September 2014

  1. Slide 1: Company Presentation

    Estrictamente Privado y Confidencial Company Presentation September‐14 Privado y Confidencial 1

  2. Slide 2: ILC's Highlights

    ILC’s Highlights  ILC acquired 67% of the shares of Corp Group Vida Chile S.A. August 19th 2014  ILC sold 51% of Desarrollos May 12th  ILC placed the Educacionales 2014 largest IPO in Chile November (US$ 468 million) 18th 2013  ILC subscribed a September Memorandum of 13th 2013 Understanding wit

  3. Slide 3: Ownership and stock price

    Ownership and stock price September 8th 2014 Ownership structure (Jun-14) Market Cap (MMUS$) 1,329 Mutual Funds & Others Internationals 4.2% Stock price (Ch$) 7,781 17.0% Net Income 6M14 (US$* Th) 70,968 Stockbrokers P/E 8.3 11.8% CChC P/BV 1.62 67.0% Dividend Pay Out 60%‐80% *Exchange rate of Ch$55

  4. Slide 4: Company overview

    Estrictamente Privado y Confidencial Company overview June, 2014 Revenues Net Income Ownership US$125.4 mm US$ 94.2 mm 67.5% Retirement  Pension funds administration (AFP) Sector  Life Insurance Company (Annuities) US$458.3 mm US$-1.04 mm 67.0% US$303.8 mm US$ 15.8 mm 99.9%  Health insurance inst

  5. Slide 5: Revenues come from…

    Estrictamente Privado y Confidencial Revenues come from… $ Pension Fund Retirement Insurance Healthcare 1.27% Commission fee 10% Voluntary savings Mandatory Health Insurance 7% Additional health contribution Gross Salary Taxes: Range 0% - 40% Voluntary Health Insurance Supplemental health insurance

  6. Slide 6: Our Business

    Estrictamente Privado y Confidencial Our Business Privado y Confidencial 6

  7. Slide 7: Habitat

    Estrictamente Privado y Confidencial Habitat Income Statement (Th.US$*) June – 14 June – 13 Var. % • Created in 1981 under the new provisional system Revenues 125,359 114,948 9.1% Cost of sales Gross Profit 125,359 - 114,948 - 9.1% - • The only AFP under the same controller through all its history S

  8. Slide 8: Habitat: Key considerations

    Estrictamente Privado y Confidencial Habitat: Key considerations Ample growth opportunities Modelo 1.5% Cuprum Habitat 21.0% 26.1%  Salary base increase Planvital  Voluntary savings products 2.7%  Incorporation of independent workers to the system Capital 20.9% Provida  Capture of transfers from

  9. Slide 9: Habitat: Key considerations

    Estrictamente Privado y Confidencial Habitat: Key considerations Operating expenses & % fee income (Jun-14) Net Income (Ch$ mm) 180 Based on actual figures 90,000 CAGR ex-encaje (‘09-’13) 7.5% Adjusted to Habitat’s 1.27% 80,000 160 fee rate 70,000 14,649 19,504 (1,846) 13,061 27,089 60,000 140 50,00

  10. Slide 10: AFP Industry as of June 2014

    Estrictamente Privado y Confidencial AFP Industry as of June 2014 Annual growth of Gross Salary Ch$ Contributor average salary (nominal terms) 700,000 667,675 638,923 650,000 CAGR: 8.2% 11.7% 9.9% 600,000 578,907 615,048 8.8% 7.8% 7.6% 8.1% 593,180 550,000 523,877 6.7% 475,543 547,553 500,000 442,06

  11. Slide 11: AFP Industry as of June 2014

    Estrictamente Privado y Confidencial AFP Industry as of June 2014 Contributors Evolution: Salary < CL$500 Th. Contributors Evolution: Salary > CL$1,400 Th. N° of N° of Contributors Contributors 60,000 6,000 Habitat Habitat 30,000 Capital 4,000 Capital Cuprum Cuprum Modelo Modelo 0 2,000 Planvital Pl

  12. Slide 12: Habitat: Peru

    Estrictamente Privado y Confidencial Habitat: Peru Habitat Ample growth opportunities 0.2% Profuturo 26.2%  December 20th 2012, Habitat was awarded in the first auction in Integra Peru 40.9%  All the new entrant into the formal sector contribute into Habitat for two years  600,000 new beneficiari

  13. Slide 13: Potential synergies in the health business

    Estrictamente Privado y Confidencial Potential synergies in the health business Average monthly contribution Average monthly contribution Medical Bill per contributor: USD $137.9 per beneficiary: USD $18.7 Monthly primus % covered by the person 10% of the Co-payment gross salary % of the between the

  14. Slide 14: Consalud

    Estrictamente Privado y Confidencial Consalud Income Statement (Th. US$*) Jun – 14 Jun – 13 Var. % Revenues 303,786 269,331 12.8% • Created in 1984 under the new Cost of sales (247,876) (203,896) 7.4% provisional health system Gross Margin 55,910 38,436 45.5% (Isapre) SG&A (39,892) (36,807) 8.4% • 9

  15. Slide 15: Consalud: Key considerations

    Estrictamente Privado y Confidencial Consalud: Key considerations Others  Growing demand prospects Masvida 5.2% Consalud 21.1% 15.6%  Leading private health insurance provider and strong market position  Strong brand recognition Colmena 16.2% Cruz Blanca  Continuous innovation and incorporation

  16. Slide 16: Consalud: Key considerations

    Estrictamente Privado y Confidencial Consalud: Key considerations Number of Contributors (as of May 2014) Average monthly contribution1 in US$ (June 2014 LTM) 400,000 250 235.9 362,254 361,162 359,026 350,000 195.1 200 300,000 277,686 267,804 169.8 158.1 250,000 149.2 150 137.9 200,000 150,000 100 1

  17. Slide 17: Consalud: Operating data

    Estrictamente Privado y Confidencial Consalud: Operating data Dec-12 Dec-13 Jun-14 LTM Mandatory contributions (Ch$ million) 208,126 231,374 239,262 Voluntary contributions (Ch$ million) 66,793 80,426 91,539 Others (Ch$ million) 461 520 563 TOTAL (Ch$ million) 275,380 312,320 331,364 N° Beneficiarie

  18. Slide 18: Red Salud

    Estrictamente Privado y Confidencial Red Salud Income Statement (Th. US$*) Jun-14 Jun-13 Var. % • One of the main private Revenues 183,569 165,533 10.9% healthcare providers, reaching Cost of sales (144,993) (130,759) 10.9% close to 18.6% of the private Gross Margin 38,575 34,775 10.9% beds in Chile

  19. Slide 19: Red Salud: Overview

    Estrictamente Privado y Confidencial Red Salud: Overview Chilean private hospitals by number of beds (2013) Davila 540 Bicentario 228 493* Alemana 400 Santa María 335 Indisa 321 Las Condes 256 Tabancura 128 222 ILC market share UC Lira 105 (in terms of private UC San Carlos 105 hospital beds): 18,6%

  20. Slide 20: Red Salud: Operating data

    Estrictamente Privado y Confidencial Red Salud: Operating data Jun-13 Jun-14 Admissions 25,542 25,645 Emergency room visits 61,271 68,617 Patient days 61,698 63,668 Includes Bicentenario, Avansalud, Tabancura and Iquique hospitals Average Average lenght of June - 14 stay (days) ocupancy rate Tabancu

  21. Slide 21: Red Salud: Operating data

    Estrictamente Privado y Confidencial Red Salud: Operating data Evolution of Revenues, Net Income and EBITDA of our private hospitals and outpatient centers Income Statement (Jun-14) Megasalud Avansalud Tabancura Bicentenario Iquique Ch$ millions Revenues 44,926 16,566 16,083 19,724 2,918 Cost of sal

  22. Slide 22: Vida Cámara

    Estrictamente Privado y Confidencial Vida Cámara Income Statement (Th. US$*) Jun – 14 Jun – 13 Var. % • Created in 2009 due to the acquisition of 99.9% of RBS Revenues from insurance activities 34,631 22,267 55.5% Revenues from financial result 3,333 3,836 (13.1%) (Chile) Seguros de Vida S.A. Cost o

  23. Slide 23: Vida Cámara: Key considerations

    Estrictamente Privado y Confidencial Vida Cámara: Key considerations New projects  Since July 2012, Vida Cámara stopped supplying the D&S  Complementary health insurance insurance  Life and catastrophic insurance  Entrance in Peru  36% premium market share in the D&S business (July 2010-June 20

  24. Slide 24: Corp Group Vida Chile

    Estrictamente Privado y Confidencial Corp Group Vida Chile • As of November 18th, 2013 ILC Income Statement (Th. US$*) Jun – 14 (**) Jun – 13 Var. % acquired 67% of the shares of Non-Insurance Activity Profit (4,485) (4,547) 1.4% Corp Group Vida Chile S.A. Revenues from insurance activities 277,565

  25. Slide 25: Corp Group Vida Chile

    Estrictamente Privado y Confidencial Corp Group Vida Chile Income Statement evolution of Corp Group Vida Chile subsidiaries Corpseguros S.A. US$ Th. (*) US$ Th. (*) Income Statement 1H14 1H13 Var % 2Q14 2Q13 Var % Premium Income 35,881 49,403 -27.4% 17,174 22,861 -24.9% Annuity 34,439 47,820 -28.0%

  26. Slide 26: Financial Summary

    Estrictamente Privado y Confidencial Financial Summary Privado y Confidencial 26

  27. Slide 27: Balance Sheet

    Estrictamente Privado y Confidencial Balance Sheet US$* Thousands Balance Jun – 14 Dec – 13 Income Statement Jun– 14 Jun – 13 Total current assets 380,831 412,412 Non insurance activity 102,917 85,820 operating income Total non current assets 1,340,302 1,287,934 Non insurance activity non 14,980 9,5

  28. Slide 28: Financial Data (as of June 2014)

    Estrictamente Privado y Confidencial Financial Data (as of June 2014) Financial Debt Credit Risk Financial Debt Corp Group (USD million) ILC Habitat Vida Cámara Vida Chile S.A. C. Machalí Consalud Red Salud TOTAL Feller Rate: Short Term 0.8 0.1 2.7 117.8 0.3 0.1 30.4 152.0 AA+ Bonds 0.8 ‐ ‐ 17.8 ‐ ‐

  29. Slide 29: Company Presentation

    Estrictamente Privado y Confidencial Company Presentation September‐14 For more information, please contact with: Ignacio González R. María Paz Merino Pagola CFO Head of Investor Relations Phone: (56 2) 2477 4606 Phone: (56 2) 2477 4673 igonzalez@ilcinversiones.cl mmerino@ilcinversiones.cl www.ilcin

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