Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q3 2013 Earnings Presentation
47 slides from Afp Habitat Sa's earnings presentation, October 2013
Slide 1: Company Presentation Q3 2013 Results
Company Presentation Q3 2013 Results October, 2013
Slide 2: Agenda
Agenda 1. Q3 2013 Highlights 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 2
Slide 3: Agenda
Agenda 1. Q3 2013 Highlights 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 3
Slide 4: Q3 Consolidated Income Statement
Q3 Consolidated Income Statement CLP MM Jan-Sept-2013 Jan-Sept-2012 Var 13/12 Var 13/12 % Total Revenues up 5.7%. Revenues From Fees up 7.3% Revenues 95,939 90,763 5,176 5.7% despite fee reduction in Q2 2012. Remuneration and Employee Related Expenses (19,172) (16,580) (2,592) 15.6% Other Operating
Slide 5: Q3 Peru Operation Pro-Forma Adjustment
Q3 Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 13/12 Adj Var 13/12 % Revenues 95.939 66 95.873 5.110 5,6% Remuneration and Employee Related Expenses (19.172) (944) (18.228) (1.649) 9,9% vs 15.6% Other Operating Expenses (18.845) (1.701) (17.144) (3.036)
Slide 6: Q3 Revenues Breakdown
Q3 Revenues Breakdown CLP MM sep-2013 % sep-2012 % Var 13/12 Var 13/12 % Revenues From Fees (Chile) Mandatory (CCICO) 88.915 94,2% 82.928 94,3% 5.987 7,2% APV 2.683 2,8% 2.258 2,6% 425 18,8% CAV 1.605 1,7% 1.459 1,7% 146 10,0% Pensions 1.203 1,3% 1.323 1,5% (120) -9,1% Other Fees 19 0,0% 6 0,0% 13 1
Slide 7: Q3 Operating Expenses Breakdown
Q3 Operating Expenses Breakdown CLP MM sep-2013 % sep-2012 % Var 13/12 Var 13/12 % Administrative Employees Remuneration 10.758 56,1% 8.827 53,2% 1.931 21,9% Sales Employees Remuneration 4.415 23,0% 4.143 25,0% 272 6,6% Employee Short-Term Benefits 2.545 13,3% 2.383 14,4% 162 6,8% Post-Employment Be
Slide 8: 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: 175 counties mornings (comunas) New web services for Website chat service voluntary savings Business hours Online Appointment extension in the call
Slide 9: Q3 Consolidated Balance Sheet
Q3 Consolidated Balance Sheet CLP MM sep-2013 dic-2012 Var % Cash and Equivalents 57.324 55.794 2,7% Other Current Assets 2.725 4.046 -32,6% Total Current Assets 60.049 59.840 0,3% Reserve Requirements 212.615 197.779 7,5% Other Non Current Assets 22.598 21.401 5,6% Total Non Current Assets 235.213
Slide 10: 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 11: Agenda
Agenda 1. Q3 2013 Highlights 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 11
Slide 12: Stock Performance
Stock Performance 1985-2013YTD 2011-2013YTD 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 3.500 800 140 700 3.000 2010: CChC purchases Citigroup’s shares and then re-
Slide 13: Agenda
Agenda 1. Q3 2013 Highlights 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 13
Slide 14: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Contributors Affiliates (MM) (%) MSMS (%) Contributors (MM) MS (%) 10 30% 6 30% 9.3 9.5 5.2 5.3 9 8.6 8.8 9.0 26.5% 5.0 8.4 4.8 7.7 8.0 5 26.0% 26.2% 4.3 4.6 4.4 27% 8 27% 24.4% 7.0 7.1 7.4 24.7% 25.4% 26.2% 4.0 7 6.4 6.7 24.5% 4 23.6% 3.8 26.2% 25.0% 24.3% 6
Slide 15: 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 7.6% 30 1,100 1,000 25 900 20 800 15 700 600 10 500 Habitat Habitat Industry Average Monthly Salary 7.6% higher Salary Base has grown at: than industry average, as of Aug-13 8.5% per ye
Slide 16: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 40% MS (%) Contributors (Avg. LTM August-2013) MS (%) Contributors (Avg. LTM August-2013) 35% 35% Provida Provida 30% 30% 25% 25% Capital Capital 20% 20% 15% 15% Modelo Cuprum Cuprum 10% 10% Modelo 5% 5%
Slide 17: 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 18: Agenda
Agenda 1. Q3 2013 Highlights 2. Stock Performance 3. Mandatory Products 4. Voluntary Products 5. Funds Performance Appendix 18
Slide 19: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) 1,000 25% 4,500 40% 864 4,046 4,204 900 798 18.7% 4,000 3,741 3,703 35% 19.2% 18.7% 18.9% 800 20% 3,500 34.7% 3,053 33.3% 30% 693 30.7% 26.0% 30.7% 700 15.0% 15.4% 15.2% 15.2% 15.3% 3,000 29.0% 28.2% 27.9% 29.
Slide 20: AFP Habitat: Leader in Voluntary Products
AFP Habitat: Leader in Voluntary Products CLP MM 1.200.000 1.012.686 1.000.000 943.498 800.000 600.000 520.954 392.471 400.000 200.000 23.545 7.582 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are constantly seekin
Slide 21: Agenda
Agenda 1. Q3 2013 Highlights 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 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- 13 4.79 3.12 3.59 3.98 3.56 1.17 1.18 2.18 3.15 4.16 1.55 2.63 3.71 4.23 4.96 Apr- 13 3.56 2.85 3.86 4.45 4.43 1.60
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 CAPIT AL_Ranking AF P CUPRUM_Ranking AF P MODELO_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 (%) Ac c ount s 12 Mont hs (%) 36 Mont hs (%) St at
Slide 24: Agenda
Agenda 1. Q3 2013 Highlights 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) 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 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 1.6 bn2 Chilean Construction Chamber (Cámara Employees: 1,3601 Chilena de la Construcción, or CChC) 27 branches, 14 service centers and 22 CChC controls AFP Habitat through mobile branc
Slide 31: Revenues from Fees Breakdown
Revenues from Fees Breakdown Jun-10 Sep-13 1.8% 1.7% 2.3% 1.6% 2.8% 1.3% 94.2% 94.2% 2.3%1.8%1.6% Jun-10 Jun-13 1.1% 0.9% 2.0% 1.6% 1.8% 1.7% AFP Industry (exc. Habitat) 95.2% 94.2% 95.6% CCICO APV CAV Pensions Other Source: Pensions Superintendence (“SP”). AFPs’ financial statements. 31
Slide 32: 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 32
Slide 33: 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 34: 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 35: 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 35
Slide 36: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 110% 110% 0.8% 100% 100% 90% 90% 80% 80% 46.1% 70% 70% 60% 0.4% 60% 1.1% 1.0% 50% 2.6% 50% 25.4% 24.7% 2.9% 0.6% 2.1% 40% 40% 1.7% 21.9% 2.5% 1.7% 21.8% 10.8% 30% 9.2% 24.6% 18.0% 30% 18.1% 58.6% 18.1% 0.4% 20% 20% 15.1% 29.4% 32.3
Slide 37: 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 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. 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 1.1 MM customer visits in our Branch branches until September 2013 Offices Nationwide coverage currently includes 27 branches, 14 service centers and 22 mobile branches Up until September 2013, our website visits totaled Internet & 5.3 MM and over 9.9 MM t
Slide 41: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This new online chat assistance service allowed over 40 Website thousand contacts from Jan-Sept 2013 Chat Up until August 2013 over 1.3 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machine
Slide 42: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In June 2013, over 1.3 MM account statements Statements were sent to our affiliates 44% of these were emailed Social As of September, 2013 we had over 1,482 followers on Facebook and Twitter Networks First AFP to use social networks As of September, 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 8. AFP Habitat Dividend Policy 43
Slide 44: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 7.4 bn Fund B: USD 8.0 bn Fund C: USD 15.9 bn 7,8% 15,4% 17,9% 14,7% 39,7% 22,8% 12,6% 15,9% 60,9% 15,5% 29,8% 47,0% Fund D: USD 5.8 bn E: USD 5.7 bn 5,4% 1,7% 1,7% 0,6% 14,7% 11,5% Total: USD 42.9 bn 68,4% 96,0% Int'l Stocks Local FI Int'l FI Local Stocks Sou
Slide 45: 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 8. 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 Q3 2013 Results
Company Presentation Q3 2013 Results October, 2013