Fideicomiso Irrevocable F/2061 · BIVA:FHIPO/14
Fideicomiso Irrevocable F/2061 — Fideicomiso Hipotecario (FHipo) — Q3 2017 Earnings Presentation
37 slides from Fideicomiso Irrevocable F/2061's earnings presentation, October 2017
Slide 1: 3rd Quarter 2017 Results
Investment that Transforms 3rd Quarter 2017 Results INVESTOR RELATIONS Ignacio Gutiérrez / CFO ig@fhipo.com Xavier Martínez / IRO xm@fhipo.com inverstorrelations@fhipo.com Ph: +52 (55) 4744-1100 www.fhipo.com [ENGLISH TRANSLATION FOR INFORMATION PURPOSES ONLY, IN THE EVENT OF ANY CONFLICT, THE SPANI
Slide 2: Index
Index Performance and achievements during the quarter Mexican mortgage market Mortgage origination programs Portfolio composition - 3Q17 Performance of our CBFIs - 3Q17 Leverage strategy Financial results & key metrics Risk assessment Our outlook Financial statements - 3Q17 2
Slide 3: 1. Performance and achievements during the quarter
1. Performance and achievements during the quarter
Slide 4: Performance and Achievements during the 3Q17
Performance and Achievements during the 3Q17 These were FHipo’s achievements during the 3rd quarter of 2017 Successful result of our MBS "FHIPOCB 17U" for Ps. $3,363 million FHipo continued its share buyback program during 3Q17 Outstanding CBFIs as of 2Q17 Outstanding CBFIs as of 1st securitization
Slide 5: FHipo was Awarded Best Social Impact Mortgage Provider 2017
FHipo was Awarded “Best Social Impact Mortgage Provider 2017” Benefiting Worker’s Savings FHipo’s Achievements Today, Mexican AFOREs (pension funds) are FHipo's main investors, holding a significant number of FHipo's outstanding CBFIs. FHipo, by Greater Dynamism and private sector participation ge
Slide 6: 2. Mexican mortgage market
LH | FIDEICOMISO | Hipotecario 2. Mexican mortgage market
Slide 7: Occupation, Employment and Mortgage Rates in Mexico
Occupation, Employment and Mortgage Rates in Mexico The population contributing to the Mexican Social Security Institute (IMSS) has increased steadily in recent years, while unemployment rate has remained low and continues its positive trend. Progressive increase in the formal economy and downward u
Slide 8: Infonavit's Mortgage Loan Origination
Infonavit’s Mortgage Loan Origination Infonavit expects to originate ~376 thousand loans per year for the next five years (2017 to 2021), which translates in a CAGR (’16 – ’21) of 7.0% Infonavit’s mortgage loan origination 2016 - 2021 Infonavit’s projected mortgage portfolio registered within its ba
Slide 9: Fovissste's Mortgage Loan Origination
Fovissste’s Mortgage Loan Origination Fovissste expects to originate ~40 billion pesos worth of mortgages annually Distribution of Fovissste’s originated portfolio (amounts in billions of pesos) Fovissste Loans: Projected Total Origination 42 19.6% 0.5% During 2015, 58.6% of the loans 40 5.6% origin
Slide 10: 3. Mortgage origination programs
3. Mortgage origination programs
Slide 11: FHipo currently participates in the following mortgage origination programs
FHipo currently participates in the following mortgage origination programs: Program Characteristics Income Level 4.5 VSM onwards 3.5 VSM to 5.0 VSM 1.0 VSM onwards Target Destination Home acquisition (guaranteed by a valid mortgage) Borrower’s Age 18 - 64 years Maximum Loan ~ USD $101,740 (1) ~ USD
Slide 12: 4. Portfolio composition - 3Q17
4. Portfolio composition - 3Q17 As of September 30th, 2017
Slide 13: Consolidated Portfolio Composition as of 3Q17
Consolidated Portfolio Composition as of 3Q17 Summary of FHipo’s consolidated portfolio characteristics (Infonavit and Fovissste(1)) (loan balance as of September 30th, 2017) FHipo - Consolidated Portafolio Total Balance (FHipo's Participation) Ps. $25,702 million (2) Total Number of Loans 82,266 Av
Slide 14: Infonavit's and Fovissste's mortgage portfolio characteristics
Infonavit’s and Fovissste’s mortgage portfolio characteristics Infonavit’s mortgage portfolio characteristics (Infonavit Total and Más Crédito) Distribution by borrower’s salary in VSM at loan origination date Distribution by interest rate in VSM (1) (as % of total loans within Infonavit’s portfolio
Slide 15: Consolidated mortgage portfolio characteristics
Consolidated mortgage portfolio characteristics (as % of total loans within consolidated portfolio) Distribution by Loan-to-Value (LTV) at loan Distribution by borrower’s salary in VSM at loan origination date origination date Distribution by origination program 21.1% < 4.5 40.8% 37.4% 32.9% 28.4% 4
Slide 16: 5. Performance of our CBFIs - 3Q17
5. Performance of our CBFIs - 3Q17
Slide 17: Performance of FHipo's CBFIs during the 3Q17 and Analysts Coverage
Performance of FHipo’s CBFIs during the 3Q17 and Analysts Coverage FHipo´s Certificados Bursátiles Fiduciarios Inmobiliarios (CBFIs) performance during the 3Q17 Average Price $ 22.26 FHipo informs that the # of CBFIs During the 3Q17 FHipo MXN $ Average Volume 981,918 prepayment option of the acq
Slide 18: 6. Leverage strategy
LH | FIDEICOMISO | Hipotecario 6. Leverage strategy
Slide 19: Diversified Sources of Funding
Diversified Sources of Funding FHipo has achieved financing through different types of leverage structures, through private institutions and the local debt market. Below we display the main factors of these financial structures. Diversified Funding Competitive Funding rates Long-Term Funding Short-T
Slide 20: Funding Structure as of 3Q17
Funding Structure as of 3Q17 Funding Structure (figures in million of pesos) Maximum Sources of Funding Type of Funding Benchmark Rate Margin Amount Withdrawn Maturity Date / Duration amount CDVITOT 15U Securitization UDIBONO 2019 (1.80%) +100 bps - $1,707 (1) Financial Duration: 2019 CDVITOT 15-2U
Slide 21: Understanding the accounting effects of our securitizations | FHIPOCB 17U
Understanding the accounting effects of our securitizations| FHIPOCB 17U According to International Financial Reporting Standards (IFRS), FHipo does not consolidate its securitizations given that they have no recourse to its balance. Therefore, they should be understood as off-balance leverage. Thes
Slide 22: Methodology and calculation of leverage and liquidity ratios (CNBV)
Methodology and calculation of leverage and liquidity ratios (CNBV) for mortgage REITs Leverage limit methodology and calculation (CNBV) for Mortgage REITs in Mexico Regulation applicable for Development or Real Estate Trust Certificates (CBFIs) in which the trust assets are mainly intended to gra
Slide 23: Exceptional Asset Quality
Exceptional Asset Quality In this slide we illustrate the development of our Non-performing Loans (NPLs), as well as our high levels of credit reserves. Stable levels of Non-Performing Loans (“NPLs”) with conservative allowance for loan losses 1.35% NPL’s as % of the consolidated Portfolio (“CP”) On
Slide 24: Attractive risk-return profile
Attractive risk-return profile FHipo’s Estimated Financial Margin (Asset Yield vs. Debt Cost) as of the 3Q17 Having considered the recent increases of the Mexican benchmark interest rate and our liabilities at fixed rates, we continue to have an attractive margin. Our assets continue to have com
Slide 25: 7. Financial results & key metrics
7. Financial results & key metrics
Slide 26: Solid financial results in 3Q17
Solid financial results in 3Q17 P&L Summary 3Q17 Revenue from our on-balance portfolio… reached Ps. $358.9 million, which P&L exclude the revenue from the transferred FHIPOCB 17U portfolio, income that was incorporated under “valuation of receivable benefits in securitization figures in Ps. 000s, ex
Slide 27: Yield of our CBFIs and Invested Capital
Yield of our CBFIs and Invested Capital The following charts illustrate the yield per CBFI for the 3Q17 and the yield of the invested capital since November 2016 FHipo’s Distribution and Yield Return on Invested Capital (calculation of accumulated yield since 4Q16) Distribution and yield on the issu
Slide 28: Our Key Metrics and Relevant Financial Information in 3Q17
Our Key Metrics and Relevant Financial Information in 3Q17 Main Financial Metrics Quarter to Quarter Year to date Figures are presented according to each metric (%, $) 3Q17 3Q16 3Q17 3Q16 We closed the 3Q17 with a Financial Margin and Interest Revenues Financial Margin of 37.6%… Financial Margin - "
Slide 29: 8. Risk assessment
LH | FIDEICOMISO | Hipotecario 8. Risk assessment
Slide 30: Risk Assessment
Risk Assessment 1. Credit Risk In accordance with the internal methodology for the calculation of probability of default, considering a loss given default of 49.6%(1) for Infonavit Total and Infonavit Más Crédito, 36.9%(2) for Infonavit 3.5 VSM and 84.0%(3) for Fovissste, and a loan exposure (outs
Slide 31: Risk Assessment (Cont.)
Risk Assessment (Cont.) 2. Market Risk As of September 30st, 2017, the VaR is of Ps. $0.00 pesos (since there were no investments in securities). We determined the VaR considering: 1. The use of historical method. 2. We considered a 99% confidence level for 10 days. 3. Our Market VaR limit is esta
Slide 32: 9. Our outlook
LH | FIDEICOMISO | Hipotecario 9. Our outlook
Slide 33: Guidance - Outlook
Guidance - Outlook 1 FHipo has been delivering on its goals and objectives established since its IPO: Equity deployment, FHipo mortgage diversification, profitability, credit quality and efficient leverage strategy… we plan to continue with such positive trend during 2017. 2 FHipo will continue grow
Slide 34: 10. Financial Statements - 3Q17
10. Financial Statements - 3Q17
Slide 35: Financial Statements – Balance Sheet
Financial Statements – Balance Sheet Balance Sheet 3Q17 (figures in 000s of MXN pesos) 3Q17 3Q16 Variation % Var ASSETS Cash and cash equivalents $747,965 $406,570 $341,395 84.0% Debt securities 154 0 154 N/A Current mortgage loans 18,389,353 13,970,169 4,419,184 31.6% Past due mortgage loans 201,28
Slide 36: Financial Statements – P&L
Financial Statements – P&L Income Statement (figures in 000s of MXN pesos, except Net Income per CBFI) Quarter to Quarter Year to date 3Q17 3Q16 Variation % Var 3Q17 3Q16 REVENUES Interests on mortgage loans $358,889 $446,668 ($87,779) (19.7%) $1,528,550 $1,134,176 Investment income 14,151 7,909 6,2
Slide 37: Disclaimer
Disclaimer This document was produced for information purposes only, for the exclusive use of the recipient. It should be understand as informative and should not be considered as a basis for any investment or financial transaction, therefore FIDEICOMISO HIPOTECARIO F/2061 (“FHipo”, the “Company” or
Fideicomiso Hipotecario (FHipo) — Q3 2017 Earnings Presentation on 6ix