Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q4 2014 Earnings Presentation
45 slides from Afp Habitat Sa's earnings presentation, March 2015
Slide 1: Company Presentation 4Q-2014 Results
Company Presentation 4Q-2014 Results March 2014
Slide 2: Agenda
Agenda 2014 Highlights Appendix 2
Slide 3: Agenda
Agenda 2014 Highlights Appendix 3
Slide 4: Key Indicators
Key Indicators Monthly Contributors Average Monthly Salary Base Contributors Mkt % Total CLP th 1,226,591 1,222,599 691.162 23.0% 22.3% 638.923 Dec-13 Dec-14 Dec-13 Dec-14 Dec-13 Dec-14 TOTAL AUM1 APV AUM1 CAV AUM1 USD bn USD MM USD MM MS% MS% MS% 43 1,548 559 37 1,323 469 26.2% 25.9% 35.3% 34.8% 35
Slide 5: Consolidated Income Statement
Consolidated Income Statement CLP MM Dec-14 Dec-13 Var 14/13 Var 14/13 % Revenues 140,504 129,379 11,125 8.6% Remuneration and Employee Related Expenses (29,543) (26,180) (3,363) 12.8% Other Operating Expenses (28,246) (25,183) (3,063) 12.2% Operating Expenses (57,789) (51,363) (6,426) 12.5% Depreci
Slide 6: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 14/13 Adj Var 14/13% Revenues 140,504 2,885 137,619 8,240 6.4% Remuneration and Employee Related Expenses (29,543) (2,565) (26,977) (798) 3.0% Other Operating Expenses (28,246) (4,535) (23,711) 1,472 -5.8% Ope
Slide 7: Revenues Breakdown
Revenues Breakdown CLP MM Dec/2014 % Dec/2013 % Var 14/13 Var 14/13 % Revenues From Fees (Chile) Mandatory (CCICO) 127,782 93.7% 119,865 94.1% 7,917 6.6% APV 4,226 3.1% 3,641 2.9% 586 16.1% CAV 2,425 1.8% 2,153 1.7% 272 12.6% Pensions 1,835 1.3% 1,626 1.3% 209 12.9% Other Fees 109 0.1% 29 0.0% 80 27
Slide 8: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM Dec/2014 % Dec/2013 % Var 14/13 Var 14/13 % Administrative Employees Remuneration (15,939) 54.0% (14,783) 56.5% (1,155) 7.8% Sales Employees Remuneration (6,646) 22.5% (5,967) 22.8% (679) 11.4% Employee Short-Term Benefits (4,695) 15.9% (3,492) 13.3% (1,203) 34.4%
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: 2014 Consolidated Balance Sheet
2014 Consolidated Balance Sheet CLP MM Dec/2014 Dec/2013 Var % Cash and Equivalents 44,321 63,159 -29.8% Other Current Assets 8,534 3,459 146.7% Total Current Assets 52,855 66,617 -20.7% Reserve Requirements 256,879 220,867 16.3% Other Non Current Assets 18,075 20,923 -13.6% Total Non Current Assets
Slide 11: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM 160,000 100,000 140,504 140,000 85,648 87,260 129,379 84,225 121,301 79,692 120,000 114,486 80,000 100,000 60,000 80,000 60,000 40,000 40,000 20,000 20,000 0 0 2011 2012 2013 2014 2011 2012 2013 2014 EBITDA / Reserve Requirement Net Profi
Slide 12: AFP Habitat: Return on Investment
AFP Habitat: Return on Investment 1st 2nd 3rd 4th 5th 6th 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 Dec - 14 8.81 8.27 9.01 7.85 6.95 7.32 5.91 6.19 5.82 6.95 4.42 4.34 4.96 5.05 5.45 Aug- 14 21.73 17.55 15.50 12.39 9.06 8.19 6.52 6.43 6.04 5.07
Slide 13: Return on Investment (Cont'd)
AFP Habitat: 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 ement A B
Slide 14: Agenda
Agenda 2014 Highlights Appendix 14
Slide 15: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 15
Slide 16: Stock Performance
Stock Performance 1985-2014YTD 2010-2014YTD Price (Base 100, Volume Traded CLP 31 Dec-2010) (CLP MM) 1000 180 4.000 March 6th, 2014: share price of CLP 915 900 160 3.500 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high 800 share price of CLP 1,010 140 3.000 2010: CChC purch
Slide 17: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 17
Slide 18: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) MS (%) Total Contributors (MM) MS (%) AUM* Contributors / Affiliates MS (%) Percentage AUM (USD bn) 1,800 35.9% 34.3% 40% 33.0% 35.3% 1,630 31.2% 33.5% 33.7% 1,600 32.6% 32.1% 1,539 1,516 35% 32.8% 1,396 33.3% 1,433 1,467 30
Slide 19: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD UF MM 1,400 1,300 1,200 1,100 8.6% 1,000 900 800 700 600 500 Habitat Industry Average Monthly Salary 8.6% higher than Salary Base has grown at: industry average, as of Dec-2014 7.5% per year since Dec-04 7.
Slide 20: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 26,5% 26,4% 25,2% 24,2% 25% 22,5% 19,5% 20% 17,0% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Dec-2006 Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 AFP Habitat´s overal
Slide 21: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 35% 35% 30% Provida Provida MS (%) Contributors (Avg. LTM Dec-2014) MS (%) Contributors (Avg. LTM Dec-2014) 30% 25% 25% 20% Capital 20% Capital 15% 15% Modelo Cuprum 10% 10% Cuprum Modelo 5% 5% Planvital
Slide 22: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 22
Slide 23: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) 35.3% 34.8% 5,000 40% 33.3% 4,449 4,500 30.7% 4,342 29.2% 35% 30.7% 29.0% 27.9% 4,090 4,000 28.2% 3,782 3,744 27.4% 30% 3,500 25.4% 26.0% 24.2% 3,087 3,000 25% 2,604 2,500 2,297 20% 2,109 2,000 1,548 15% 1,502
Slide 24: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1.400.000 1.279.848 1.296.802 1.200.000 1.000.000 800.000 600.000 567.972 501.131 400.000 200.000 32.823 13.564 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are constantly see
Slide 25: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 25
Slide 26: 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 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 UNION UNION UNION of 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: 0.47%-1.54% of salary base the AFP (Habitat = 1.27%) Fee: 0.95%
Slide 29: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 29
Slide 30: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.5 bn5 Chilean Construction Chamber (Cámara Employees: 1,5611 Chilena de la Construcción, or CChC) 27 branches, 6 service centers, 22 mobile CChC controls AFP Habitat through branches
Slide 31: Revenues from Fees Breakdown
Revenues from Fees Breakdown Dec-11 Dec-14 1.8% 1.8% 1.7% 1.3% 2.6% 3. 1% 2.3%1.8%1.6% 93.7% 93.8% Dec-11 Dec-14 1.2% 1.9% 2.1% AFP 94.2% Industry (exc. Habitat) 94.7% CCICO APV CAV Pensions Other Source: SP. AFPs’ financial statements. 31
Slide 32: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 32
Slide 33: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 110% 100% 90% 80% 70% 13,6% 60% 1,3% 50% 27,9% 1,8% 27,6% 40% 1,2% 13,7% 30% 0,6% 17,2% 14,7% 20% 0,4% 33,9% 29,9% 13,4% 31,0% 10% 19,6% 17,5% 8,4% 0% 1 3 2 1 4 3 2 4 Habitat Capital Cuprum Modelo Planvital Provida As of Q4-2014 AF
Slide 34: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. 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) • In upcoming May 2015 it will have been two years since our Commercial launch took place on June 1st, 2013 • In December, 2014
Slide 36: Peruvian Operations (Cont'd)
Peruvian Operations (Cont’d) Affiliates Anual Return on Investment Affiliates (MM) MS% 500,000 8% Fund 1 Fund 2 Fund 3 7% 450,000 7% Habitat 8.09% 8.04% 5.13% 400,000 6% 400,388 6% Integra 7.34% 7.87% 4.43% 350,000 5% Prima 7.34% 7.27% 4.59% 300,000 4% 341,969 Profuturo 7.23% 8.57% 5.91% 250,000 4%
Slide 37: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 37
Slide 38: Contact with our Customers
Contact with our Customers We serviced over 1.2 MM customer visits in our Branch branches until December 2014 Offices Nationwide coverage currently includes 27 branches, 6 service centers, 22 mobile branches and 3 stands in malls Up until December 2014, our website visits totaled 8.6 Internet & MM a
Slide 39: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 69 Website thousand contacts from Jan-Dec 2014 Chat Up until December 2014 over 2.5 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines l
Slide 40: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In October 2014, over 1.4 MM account statements Statements were sent to our affiliates 49% of these were emailed Social As of December, 2014 we had over 83,570 followers on Facebook and Twitter Networks First AFP to use social networks As of December, 2014
Slide 41: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. AFP Habitat Dividend Policy 41
Slide 42: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 6.8 bn Fund B: USD 7.6 bn Fund C: USD 16.2 bn 12% 15% 26% 16% 16% 16% 43% 14% 6% 63% 27% 46% Fund D: USD 6.3 bn E: USD 6.5 bn 4% 4% 4% 1% 14% 15% Total: 91% USD 43.6 bn 67% Source: SP as of Dec-2014. Fx (CLP/USD): 607.38. 42
Slide 43: Appendix
Appendix 1. Stock Performance 2. Mandatory Products 3. Voluntary Products 4. AFP Industry Overview 5. AFP Habitat Overview 6. AFPs Operating Cost Structure 7. Operation in Peru 8. Contact with our Customers 9. AFP Habitat Funds Breakdown 10. 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: Company Presentation 4Q-2014 Results
Company Presentation 4Q-2014 Results March 2014