Inversiones La Construccion SA · BCS:ILC

Inversiones La Construccion SA — Investor Presentation (March 2015)

29 slides from Inversiones La Construccion SA's investor presentation, March 2015

  1. Slide 1: Company Presentation

    Estrictamente Privado y Confidencial Company Presentation March-15 Privado y Confidencial 1

  2. Slide 2: ILC's Highlights

    ILC’s Highlights  ILC subscribed an MoU with the controlling shareholder of Banco Internacional December  ILC acquired 67% of the 18-19th shares of Corp Group October 2014 Vida Chile S.A. 28th  ILC sold 51% of August 2014  ILC placed the Desarrollos 19th largest IPO in Chile Educacionales May 12

  3. Slide 3: Ownership and stock price

    Ownership and stock price March 13th 2015 Ownership structure (Dec-14) Others Market Cap (MMUS$) 1,226 4.7% Stockbrokers 11.5% Stock price (Ch$) 7,445 Net Income 9M14 (US$* Th) 88,712 Internationals 16.8% P/E 7.97 P/BV 1.54 CChC 67.0% Dividend Pay Out 60%-80% *Exchange rate of Ch$599.22 as of Septem

  4. Slide 4: Company overview

    Estrictamente Privado y Confidencial Company overview September, 2014 Revenues Net Income Ownership US$231.6 mm* US$155.8 mm* 67.5% Retirement  Pension funds administration (AFP) Sector  Life Insurance Company (Annuities) US$640.7 mm US$19.4 mm 72.4% US$420.7 mm US$ 12.0 mm 99.9%  Health insuranc

  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$*) Dec – 14 Dec – 13 Var. % • Created in 1981 under the new provisional system Revenues 231,569 213,233 8.6% Cost of sales Gross Profit 231,569 - 213,233 - 8.6% - • The only AFP under the same controller through all its history SG&

  8. Slide 8: Habitat: Key considerations

    Estrictamente Privado y Confidencial Habitat: Key considerations Modelo 1.7% Ample growth opportunities Cuprum Habitat 21.2% 25.9%  Salary base increase  Voluntary savings products Planvital 2.8%  Incorporation of independent workers to the system  Capture of transfers from competitors Provida 2

  9. Slide 9: Habitat: Key considerations

    Estrictamente Privado y Confidencial Habitat: Key considerations Operating expenses & % fee income (Dec-14) Net Income (Ch$ mm) 350 CAGR ex-encaje (‘09-’14) 5.1% Based on actual figures 100,000 90,000 Adjusted to Habitat’s 1.27% 32,089 80,000 fee rate 300 70,000 19,504 (1,846) 13,061 14,649 27,089 6

  10. Slide 10: AFP Industry as of December 2014

    Estrictamente Privado y Confidencial AFP Industry as of December 2014 Ch$ Annual growth of Gross Salary Contributor average salary (nominal terms) 750,000 691,162 700,000 12.25% 11.83% CAGR: 8.3% 638,923 650,000 8.97% 578,907 636713.0 8.18% 600,000 7.42% 7.34% 6.59% 593,180 550,000 523,877 500,000 4

  11. Slide 11: AFP Industry as of December 2014

    Estrictamente Privado y Confidencial AFP Industry as of December 2014 Contributors Evolution: Salary < CL$500 Th. Contributors Evolution: Salary > CL$1,400 Th. 50,000 6,000 40,000 5,000 30,000 Habitat Habitat 20,000 4,000 Capital Capital 10,000 3,000 Cuprum Cuprum 0 Modelo 2,000 Modelo -10,000 Planv

  12. Slide 12: Habitat: Peru

    Estrictamente Privado y Confidencial Habitat: Peru Habitat Ample growth opportunities 0.4% Profuturo 24.1%  December 20th 2012, Habitat was awarded in the first auction in Integra Peru 37.2%  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 $137.8 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 • Created in 1984 under the new Income Statement (Th. US$*) Sep – 14 Sep – 13 Var. % Revenues 420,722 383,158 9.8% Cost of sales (352,308) (328,398) 7.3% provisional health system Gross Margin 68,414 54,760 24.9% (Isapre) SG&A (57,805) (53,105) 8.9% • 99

  15. Slide 15: Consalud: Key considerations

    Estrictamente Privado y Confidencial Consalud: Key considerations  Growing demand prospects Others 5.2% Consalud Masvida 20.7%  Leading private health insurance provider 16.2% 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 September 2014) Average monthly contribution1 in US$ (Sep. 2014 LTM) 300 400,000 367,125 363,617 362,014 350,000 250 238.2 300,000 283,619 283,361 194.0 200 168.8 250,000 158.0 137.8 144.9 150 200,000 150

  17. Slide 17: Consalud: Operating data

    Estrictamente Privado y Confidencial Consalud: Operating data Dec-12 Dec-13 Sep -14 LTM Mandatory contributions (Ch$ million) 208,126 231,374 241,378 Voluntary contributions (Ch$ million) 66,793 80,426 92,893 Others (Ch$ million) 461 520 558 TOTAL (Ch$ million) 275,380 312,320 334,829 Contributors B

  18. Slide 18: Red Salud

    Estrictamente Privado y Confidencial Red Salud Income Statement (Th. US$*) Sep-14 Sep-13 Var. % • One of the main private Revenues 262,726 236,861 10.9% healthcare providers, reaching Cost of sales (205,780) (186,453) 10.4% close to 18.6% of the private Gross Margin 56,946 50,408 13.0% 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 Sep-13 Sep-14 Admissions 39,140 39,609 Emergency room visits 97,450 99,822 Patient days 96,243 100,306 Includes Bicentenario, Avansalud, Tabancura and Iquique hospitals Average Average lenght of September - 14 stay (days) ocupancy rate T

  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 (Sep-14) Megasalud Avansalud Tabancura Bicentenario Iquique Ch$ millions Revenues 68,387 25,884 25,231 30,833 4,800 Cost of sal

  22. Slide 22: Vida Cámara

    Estrictamente Privado y Confidencial Vida Cámara Income Statement (Th. US$*) Sep – 14 Sep – 13 Var. % • Created in 2009 due to the acquisition of 99.9% of RBS D&S Chile- Gross Profit ** (3,937) (1,691) (132.9%) D&S Peru – Gross Profit ** (5,408) - - (Chile) Seguros de Vida S.A. Health and life Insur

  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  8.4% premium market share in the  New D&S Contract in Chile Su

  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$*) Sep – 14 (**) Sep – 13 Var. % acquired 67% of the shares of Non-Insurance Activity Profit (6,346) (8,305) 30.9% Corp Group Vida Chile S.A. • Revenues from insurance activities 364,5

  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 9M14 9M13 Var % 3Q14 3Q13 Var % Premium Income 48,631 53,478 -9.1% 15,534 7,908 96.4% Annuity 46,639 51,317 -9.1% 14,8

  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 Sep – 14 Dec – 13 Income Statement Sep– 14 Sep – 13 Total current assets 355,252 380,408 Non insurance activity 129,405 116,655 operating income Total non current assets 1,268,292 1,187,989 Non insurance activity non 24,145 15

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

    Estrictamente Privado y Confidencial Financial Data (as of September 2014) Financial Debt Credit Risk Financial Debt Vida Corp Group (USD million) ILC Habitat Cámara Vida Chile S.A. C. Machalí Consalud Red Salud TOTAL Feller Rate: Short Term 30.2 0.1 - 262.3 1.2 0.1 34.8 328.8 AA+ Bonds 1.9 - - 18.3

  29. Slide 29: Company Presentation

    Estrictamente Privado y Confidencial Company Presentation March-15 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.ilcinvers

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