Qualitas Controladora S.a.b. De C.v. · BMV:Q

Qualitas Controladora S.a.b. De C.v — Investor Presentation (2018)

31 slides from Qualitas Controladora S.a.b. De C.v's investor presentation, 2018

  1. Slide 1: Corporate Presentation 1Q18

    p. 01 Corporate Presentation 1Q18

  2. Slide 2: 1Q18 = Financial Strength

    Quálitas | Corporate Presentation 1Q18 p. 02 Mexican specialized auto insurer with 24 years in the market Market leader in Mexico since 2007 Specialization allows Q to provide best quality service and keep cost under control International presence in the USA, Costa Rica and El Salvador UNDERWRITING

  3. Slide 3: Key financial indicators

    Quálitas | Corporate Presentation 1Q18 p. 03 Written Premiums Earned Premiums Comprehensive Financial Income Underwriting result Net Income Cash per Share Combined Ratio LTM ROE Q* Stock Price

  4. Slide 4: Stock trading and performance

    Quálitas | Corporate Presentation 1Q18 p. 04 Average daily trade Volume ∆% Value (MXN) ∆% Value (USD) ∆% Average XRT 2018 2017 1Q18 18.74 20.33 1Q18 806,137 51.5% 36,399,028 126.3% 1,942,659 145.5% 12 months 18.50 19.24 12 months 528,501 15.1% 19,293,986 45.4% 1,042,660 51.2% $50.32 Marketability In

  5. Slide 5: ROE and peer comparison

    Quálitas | Corporate Presentation 1Q18 p. 05 32.9% * Q* ROE 2017 P/E P/BV Q 29.4% 11.50 2.99 • No debt CREAL 15.1% 6.25 0.74 • Benefits from interest rates hikes GFREGIO 19.4% 13.99 2.50 • Inhouse payroll and employee FINDEP 5.5% 8.73 0.47 management – Employee Profit GBM 7.3% 29.87 2.16 Sharing ACT

  6. Slide 6: Outstanding Service Specialization

    Quálitas | Corporate Presentation 1Q18 p. 06 Outstanding Service Specialization  Top quality service  Unique Business Model  State of the art technology  Nationwide network with 410 offices  #1 auto insurance company in Mexico with 31.3%* of market share  Experienced management team “Focus on

  7. Slide 7: Operational Center Quálitas

    Quálitas | Corporate Presentation 1Q18 p. 07 Quálitas  Call Center  IT Support  Product Pricing Policyholders  New Channels: Telephone & Internet Service Offices  Owned by specialized entrepeneurs Agents  Independent decision-making  Compensation to office representatives links sales with cla

  8. Slide 8: Insured units

    Quálitas | Corporate Presentation 1Q18 p. 08 Insured units 15,114 3,814,489 13,650 49,248 *Quálitas Development Offices

  9. Slide 9: Timely & accurate cost booking

    Quálitas | Corporate Presentation 1Q18 p. 09 Timely & accurate cost booking = Positive adjustment in reserves Less capital requirements 1. Policy sale 2. Car accident 3. Claims attention & initial reserve 4. Budget submission 5. Valuation 6. Payment & reserves adjustments 7. Comprehensive Service Su

  10. Slide 10: Apps, portals and risk management

    Quálitas | Corporate Presentation 1Q18 p. 10 Q Agentes App Q Móvil App Risk Management • Encontrack • Mobileye • Route and risk hours study • Drivers Training • Employee Training • Reforestation Web Service Portals • Agents • Agencies • Claims Officers and Valuators Talent Incubator • Suppliers Prog

  11. Slide 11: Sales & Financing, New Car Sales, Imports

    Quálitas | Corporate Presentation 1Q18 p. 11 Sales & Financing Imports New Car Sales  -10.8% QoQ decrease  -13.4% Monthly decrease (March 2018)  Financing -> 75.3% of total sold units (Feb.18)  Import of used vehicles -> +16.8% (vs. Feb.17) New Car Sales Monthly Increase Source: Mexican Associat

  12. Slide 12: 1Q18 Car theft and recovery, Costs

    Quálitas | Corporate Presentation 1Q18 p. 12 1Q18 Car theft and recovery  Industry:  +3% in theft  +7% in recovery Theft to Industry Recovery from Industry Theft to Quálitas Recovery from Quálitas Costs  Low demand decreases vehicle prices  Spare parts and repair costs keep going up Source: Coo

  13. Slide 13: Premiums written by segment

    Quálitas | Corporate Presentation 1Q18 p. 13 Premiums written by segment (MM MXN) Segment 1Q18 1Q17 Δ$ Δ% Subsidiaries’ growth (USD) Individual 2,336 1,933 402 20.8% 1Q18 Fleets 2,776 2,469 307 12.4% QIC (19.2%) Financial Institutions 3,485 3,923 (438) (11.2%) Q CR 5.4% Foreign subsidiaries 390 468

  14. Slide 14: Income Statement and Balance Sheet 1Q18

    Quálitas | Corporate Presentation 1Q18 p. 14 INCOME STATEMENT 1Q18 1Q17 Δ %/bp BALANCE SHEET 1Q18 1Q17 Δ %/bp Written Premiums 9,046 9,287 (2.6%) Assets 54,730 45,201 21.1% Net Written Premiums 8,882 9,265 (4.1%) Investments & Real Estate 28,727 23,018 24.8% Earned Premiums 7,675 6,706 14.4% Investe

  15. Slide 15: Market Penetration in Mexico

    Quálitas | Corporate Presentation 1Q18 p. 15 Market Penetration in Mexico 30% Mandatory Insurance in every State except for Michoacán Written premiums growth Market Share by segment CAGR(%)* Cars 25.3% Q 12.5% Market 7.4% Trucks 45.9% Market without Q 5.8% Tourists 16.5% Source: Mexican Association

  16. Slide 16: Acquisition, Claims, Operating and Combined ratios

    Quálitas | Corporate Presentation 1Q18 p. 16 Acquisition Claims Operating Combined

  17. Slide 17: Market share by insurer

    Quálitas | Corporate Presentation 1Q18 p. 17 09 10 11 12 13 14 15 16 17 Quálitas 18.9 19.6 20.1 21.5 22.5 24.9 25.3 31.5 31.3 G.N.P. 12.8 12.4 11.1 12.3 12.4 12.5 14.3 12.7 12.4 ABA (Chubb) 8.5 9.5 8.6 7.5 7.8 7.7 7.0 6.8 9.1 AXA 18.1 17.4 18.6 18.1 16.5 14.0 12.1 10.9 8.4 HDI Seguros 1.6 1.7 1.8 1.

  18. Slide 18: Industry comparison table

    Quálitas | Corporate Presentation 1Q18 p. 18 2009 2010 2011 2012* 2013 2014 2015 2016 2017 Total Total Quálitas (221) (76) 475 903 483 (95) 47 1,103 895 3,515 Quálitas 3,515 G.N.P. (499) (668) (371) (373) (27) (87) (221) (404) (952) (3,602) Other (8,231) ABA (Chubb) (170) (200) 356 411 368 132 (79)

  19. Slide 19: Industry comparison table

    Quálitas | Corporate Presentation 1Q18 p. 19 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Total Quálitas (220) (75) 475 903 484 (93) 48 1,104 897 3,524 Quálitas 3,524 G.N.P. (2,050) (1,906) (2,112) (2,508) (2,469) (3,405) (3,553) (1,855) (3,404) (23,261) Other (31,966) ABA (Chubb) (106) (150)

  20. Slide 20: Industry comparison table

    Quálitas | Corporate Presentation 1Q18 p. 20 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Total Quálitas 226 392 833 1,254 840 680 619 1,246 2,036 8,126 Quálitas 8,126 G.N.P. (10) (209) 11 69 356 186 102 188 (299) 394 Other 10,998 ABA (Chubb) 48 316 842 819 845 567 304 592 617 4,951 Bank-owned

  21. Slide 21: Industry comparison table

    Quálitas | Corporate Presentation 1Q18 p. 21 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Total Quálitas 246 415 835 1,256 841 682 621 1,248 2,037 8,179 Quálitas 8,179 G.N.P. 1,001 691 701 663 790 223 169 2,126 2,669 9,033 Other 191,708 ABA (Chubb) 399 303 875 854 796 478 340 807 722 5,576 Tot

  22. Slide 22: Portfolio by type of issuer, risk, return on equities

    Quálitas | Corporate Presentation 1Q18 p. 22 Portfolio by risk Portfolio by type of issuer Return on equities Strategy 1Q18 -Fixed Income (83% of total portfolio) Equities Focus on short-term and variable rate 1Q18 bonds Q-annualized yield 1.87% -Equities (17% of total portfolio) NAFTRAC yield (40.2

  23. Slide 23: Average Invested Assets and Mexico's Interest Rate

    Quálitas | Corporate Presentation 1Q18 p. 23 Average Invested Assets, float, MXN bn CAGR: 23.2% Return on investments Mexico’s Interest Rate 1 Quálitas’ investment porfolio grows continiously and is directly benefited from the hikes in interest rates. CAGR – Compound anual growth rate 1 Cetes 28 - T

  24. Slide 24: Dividend, share price and capital stock reduction

    Quálitas | Corporate Presentation 1Q18 p. 24 Dividend Q* Closing Payments** Price $11.12 $11.00 $0.50 $20.13 $1.50 $31.62 $30.54 $21.72 $0.50 $29.33 Actions to be taken after the AGM: $0.60 $36.50 • To amortize 15 million shares $0.70 $50.32 (reduction of capital stock) $3.80 • To pay a cash dividen

  25. Slide 25: Cash per share versus investment funds

    Quálitas | Corporate Presentation 1Q18 p. 25 Investment Fund 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 CAGR ACTIPAT 7.8 9.3 8.6 10.8 11.7 12.2 12.7 13.7 14.8 15.1 7.6% GBMMOD 1.7 2.0 2.1 2.6 3.0 3.2 3.2 3.4 3.6 3.6 8.6% VECTPA 1.3 1.6 1.4 1.7 1.7 1.6 1.6 1.7 1.9 1.8 3.6% BMERPAT 62.3 73.3 69

  26. Slide 26: Dividend Policy

    Quálitas | Corporate Presentation 1Q18 p. 26 Dividend Policy Q aims to maintain a minimum stockholders’ equity of 1.5 times the regulatory capital requirement. Between 50% and 90% of the surplus will be distributed as a dividend, depending on the Company’s capital requirements for future projects.

  27. Slide 27: Analyst coverage

    Quálitas | Corporate Presentation 1Q18 p. 27 Institution Analyst E-mail Target Price Actinver Enrique Mendoza emendoza@actinver.com.mx 55.0 MXN Buy BBVA Research Rodrigo Ortega r.ortega@bbva.com 34.9 MXN Buy Grupo Bursátil Mexicano Jorge Benitez jjbenitez@gbm.com.mx - - Interacciones Manuel González

  28. Slide 28: Investor relations contacts

    Quálitas | Corporate Presentation 1Q18 p. 28 Mariana Fernández Andreina Incandela María Fernanda Escobar T: + 52 55 1555 6103 T: + 52 55 1555 6104 T: + 52 55 1555 6175 mfernandez@qualitas.com.mx aincandela@qualitas.com.mx mfescobar@qualitas.com.mx qinversionistas.qualitas.com.mx

  29. Slide 29: Quálitas | Corporate Presentation 1Q18 p. 29

    Quálitas | Corporate Presentation 1Q18 p. 29

  30. Slide 30: Quálitas | Corporate Presentation 1Q18 p. 30

    Quálitas | Corporate Presentation 1Q18 p. 30

  31. Slide 31: Quálitas | Corporate Presentation 1Q18 p. 31

    Quálitas | Corporate Presentation 1Q18 p. 31

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