Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q1 2014 Earnings Presentation
46 slides from Afp Habitat Sa's earnings presentation, May 2014
Slide 1: Company Presentation Q1-2014 Results
Company Presentation Q1-2014 Results May 2014
Slide 2: Agenda
Agenda 2014 Highlights Appendix 2
Slide 3: Agenda
Agenda 2014 Highlights Appendix 3
Slide 4: Key Figures
Key Figures Monthly Contributors Monthly Salary Base CLP th 1,182,726 1,180,997 623,974 568,863 2012 2013 2012 2013 Contributors Market Share Contributors Market Share Contributors Market Share Total > CLP 850k & < CLP 1MM pm > CLP 1MM pm 27,2% 27,6% 24,4% 25,6% 25,7% 23,5% 2012 2013 2012 2013 2012
Slide 5: Key Indicators (Cont’d)
Key Indicators (Cont’d) TOTAL AUM1 APV AUM1 CAV AUM1 USD bn USD MM USD MM 1.498 44 42 1.272 525 481 26.0% 26.1% 33.4% 35.6% 35.5% 35.8% mar-13 mar-14 feb-13 feb-14 feb-13 feb-14 Source: AFP Habitat. (1): Figures in CLP converted to USD at Fx (CLP/USD) 551.18 as of Mar-2014. 5
Slide 6: Consolidated Income Statement
Consolidated Income Statement CLP MM Mar-14 Mar-13 Var 14/13 Var 14/13 % Total Revenues up 10.2%. Revenues 34,623 31,426 3,197 10.2% Revenues From Fees up 9.8% Remuneration and Employee Related Expenses (6,462) (5,673) (789) 13.9% Other Operating Expenses (5,715) (5,434) (281) 5.2% Operating expense
Slide 7: 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 34,623 378 34,245 2,820 9.0% vs 13.9% Remuneration and Employee Related Expenses (6,462) (594) (5,868) (195) 3.4% vs -7.1% Other Operating Expenses (5,715) (665) (5,050) 384 -7.1
Slide 8: Revenues Breakdown
Revenues Breakdown CLP MM Mar-14 % Mar-13 % Var 14/13 Var 14/13 % Revenues From Fees (Chile) Mandatory (CCICO) 31,726 93.5% 29,119 94.2% 2,606 9.0% APV 993 2.9% 853 2.8% 141 16.5% CAV 561 1.7% 548 1.8% 13 2.4% Pensions 437 1.3% 395 1.3% 42 10.7% Other Fees 230 0.7% 6 0.0% 224 3859.9% Total Revenues
Slide 9: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM Mar-14 % Mar-13 % Var 14/13 Var 14/13 % Administrative Employees Remuneration (3,801) 58.8% (3,034) 53.5% (767) 25.3% Sales Employees Remuneration (1,346) 20.8% (1,307) 23.0% (39) 3.0% Employee Short-Term Benefits (667) 10.3% (831) 14.6% 164 -19.8% Post-Employment
Slide 10: Differentiated Service Offering
Differentiated Service Offering Habitat Móvil 13 Branches opening 22 mobile branches on Saturday Coverage: 177 comunas mornings and 191 localidades New web services for Website chat service voluntary savings Business hours Online Appointment extension in the call Reservation center Friday afternoon
Slide 11: 2014 Consolidated Balance Sheet
2014 Consolidated Balance Sheet CLP MM Mar-14 Dec-13 Var % Cash and Equivalents 70.349 63.159 11,4% Other Current Assets 3.900 3.459 12,8% Total Current Assets 74.249 66.617 11,5% Reserve Requirements 229.874 220.867 4,1% Other Non Current Assets 21.131 20.923 1,0% Total Non Current Assets 251.005 2
Slide 12: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM 140.000 140.000 1 2 9 ,379 1 2 1 ,301 1 1 4 ,486 120.000 120.000 1 0 8 ,949 100.000 100.000 8 4 ,225 8 5 ,648 7 9 ,692 80.000 7 1 ,759 80.000 60.000 60.000 40.000 40.000 20.000 20.000 0 0 2010 2011 2012 2013 2010 2011 2012 2013 EBITDA / R
Slide 13: 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 14: 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 Dec - 13 7.02 4.59 4.84 5.62 4.99 0.50 0.63 2.11 3.47 4.45 10.61 8.89 7.52 6.51 5.72 Aug- 13 4.79 3.12 3.59 3.98 3.56 1.1
Slide 15: 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 16: Agenda
Agenda 2014 Highlights Appendix 16
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: Stock Performance
Stock Performance 1985-2014YTD 2011-2014YTD 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 2010: CChC purchases Citigroup’s shares and then 140 re-sells 14%;
Slide 19: 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 19
Slide 20: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) (%)(%) MS MS Total Contributors (MM) MS (%) 10 9,3 9,5 9,6 30% 6 30% 8,8 9,0 9 8,4 8,6 5,2 5,3 5,3 8,0 26.5% 5,0 8 7,1 7,4 7,7 27% 5 26.0% 26.2% 4,6 4,4 4,8 27% 6,7 7,0 24.7% 24.5% 24.4% 4,3 25.0% 7 6,3 6,4 23.9% 24.2% 26.2%
Slide 21: Mandatory Products Indicators (Cont’d)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD UF MM 1.300 35 1.200 8.8% 30 1.100 1.000 25 900 800 20 700 15 600 500 10 Habitat Habitat Industry Average Monthly Salary 8.8% higher Salary Base has grown at: than industry average, as of Feb-2014 8.0% per ye
Slide 22: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 27,8% 27,2% 25,8% 25,7% 25% 23,5% 20,9% 20% 18,2% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total (CLP th) 1,000 Dec-2005 Dec-2006 Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 AFP Habitat has incr
Slide 23: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 35% 35% MS (%) Contributors (Avg. LTM Feb-2014) MS (%) Contributors (Avg. LTM Feb-2014) Provida 30% Provida 30% 25% 25% 20% Capital Capital 20% 15% 15% Modelo Cuprum 10% Cuprum 10% Modelo 5% 5% Planvital
Slide 24: 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 24
Slide 25: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) 5000 35.3% 35.6% 40% 1,000 898 913 25% 33.3% 4,342 4,274 19.2% 4500 35% 900 798 30.7% 29.2% 30.7% 4,090 19.1% 4000 18.7% 18.9% 27.4% 27.9% 3,782 3,744 29.0% 28.2% 800 20% 30% 3500 25.4% 26.0% 16.2% 693 24.2% 7
Slide 26: AFP Habitat: Leader in Voluntary Products
AFP Habitat: Leader in Voluntary Products CLP MM 1.200.000 1.131.523 1.058.823 1.000.000 800.000 600.000 522.641 427.811 400.000 200.000 26.574 8.072 0 Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are constantly seek
Slide 27: 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 27
Slide 28: 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 29: 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 30: 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 31: 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 31
Slide 32: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.3 bn2 Chilean Construction Chamber (Cámara Employees: 1,3332 Chilena de la Construcción, or CChC) 27 branches, 8 service centers and 22 mobile CChC controls AFP Habitat through branch
Slide 33: Revenues from Fees Breakdown
Revenues from Fees Breakdown Jun-10 Dec-13 1.7% 1.3% 1.8% 2.9% 2.3% 1.6% 0.0% 94.1% 94.2% 2.3%1.8%1.6% Comisiones Obligatorias Comisiones por APV Jun-10 Comisiones por CAV Dec-13 Comisiones por Pen Otras Comisiones 1.1% 0.9% 2.0% 1.6% 1.8% 1.7% AFP Industry (exc. Habitat) 95.2% 94.2% 95.6% CCICO APV
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: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 110% 110% 100% 100% 90% 90% 50.8% 80% 80% 70% 14.9% 70% 60% 1.3% 60% 6.2% 1.1% 50% 28.0% 5.1% 50% 27.2% 24.1% 2.3% 25.2% 40% 2.0% 0.6% 40% 1.6% 20.8% 12.0% 10.3% 1.6% 64.2% 30% 23.9% 30% 14.7% 14.7% 0.4% 20% 20% 31.4% 35.4% 35.4% 3
Slide 36: 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 36
Slide 37: 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) • Commercial launch took place on June 1st, 2013 • Total investment of approximately USD 20 MM during the first 4 years Mixed Aff
Slide 38: 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 38
Slide 39: Contact with our Customers
Contact with our Customers We serviced over 1.4 MM customer visits in our Branch branches until December 2013 Offices Nationwide coverage currently includes 27 branches, 8 service centers and 22 mobile branches Up until March 2014, our website visits totaled 1.8 MM Internet & and over 3.5 MM transac
Slide 40: Contact with our Customers (Cont’d)
Contact with our Customers (Cont’d) This new online chat assistance service allowed over 14 Website thousand contacts from Jan-Mar 2014 Chat Up until March 2014 over 470 MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines
Slide 41: Contact with our Customers (Cont’d)
Contact with our Customers (Cont’d) Account In December 2013, over 2.4 MM account Statements statements were sent to our affiliates 34% of these were emailed Social As of March, 2014 we had over 69,852 followers on Facebook and Twitter Networks First AFP to use social networks As of Dec, 2013 Habita
Slide 42: 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 42
Slide 43: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 6.4 bn Fund B: USD 7.4 bn Fund C: USD 16.1 bn 14,1% 23,2% 17,2% 16,0% 40,1% 12,9% 14,3% 12,5% 9,6% 61,9% 29,9% 48,4% Fund D: USD 5.8 bn E: USD 6.4 bn 5,2% 1,8% 2,4% 0,6% 13,1% 11,6% Total: USD 42.3 bn 70,1% 95,2% Int'l Stocks Local FI Int'l FI Local Stocks Sou
Slide 44: 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 44
Slide 45: 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 46: Company Presentation Q1-2014 Results
Company Presentation Q1-2014 Results May 2014