Slide 1: AFP Habitat Overview December 2010
AFP Habitat Overview December 2010
Slide 2: Industry Composition: 1981 – 2010
Industry Composition: 1981 – 2010 1981 1990 1994 1995 1998 2004 2008 2010 (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 UNION UNION UNION Habitat and Cuprum are SN CRISTOBAL the only
Slide 3: Industry Milestones: 1980 – 2010
Industry Milestones: 1980 – 2010 1980: DL 3.500 The compulsory 2002: Creation of privatized 2009: Joint multi-fund system and individual 1994-96: Highly bidding for SIS expansion of pension system competitive coverage voluntary pension was established environment alternatives 1980 1990 2000 2010 198
Slide 4: Pension Reform 2008
Pension Reform 2008 Most significants changes o Modifications introduced in 2008: • Elimination of fixed commission structure • AFPs permitted to charge fees on assets under management in CAV* • Solidarity Pillar: benefits insured by the government • Third Pillar: Voluntary pension contributions • V
Slide 5: AFP Industry Product Offerings
AFP Industry Product Offerings Individual Compulsory Contribution Capitalization Accounts (CCICO) • Compulsory savings = 10% gross monthly salary base* 2,1% 1,7% • Fee: % of salary base (1.14 – 2.36 %) APV (Voluntary Contributions) 1,4% • Voluntary pension contributions • Tax benefits on amounts <=
Slide 6: Individual Compulsory Contribution Capitalization Accounts (CCICO)
Individual Compulsory Contribution Capitalization Accounts (CCICO)
Slide 7: CCICO – Market Share
CCICO – Market Share Affiliates – Salary Base (2010) 50% 40% Total Salary Base Market Share Provida (Avg. 2010) 30% Habitat Capital 20% Cuprum 10% Modelo Planvital 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Affiliates Market Share (dec. 2010) • Habitat has maintained a very stabled MS both in numb
Slide 8: CCIO – Growth
CCIO – Growth Affiliates and Total Salary Base (2010 / 2008) 15,0% Habitat 14,5% Growth in Total Salary Base 14,0% ( Avg. 2008 - 2010) System 13,5% 13,0% 12,5% 12,0% 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% Growth in Affiliates (2008 - 2010) • Habitat registered one of the highest growth rates b
Slide 9: CCICO – Share of Contributors by Income Range
CCICO – Share of Contributors by Income Range (AFP Habitat 2010) 35% % Total Contributors per Income Range 30% 25% % Total Contributors 20% 29% 28% 15% 27% 27% 26% 23% 24% 10% 5% 0% (M$) 0 - 200 200 - 400 400 - 650 650 - 850 850 - 1.050 > 1.050 Total In December 2010, Habitat had 25.1% of contributo
Slide 10: CCICO – Affiliates and Salary Base
CCICO – Affiliates and Salary Base Evolution AFP Habitat 2005 - 2010 2.500.000 25,0 24,0 2.000.000 23,0 N° Affiliates 1.500.000 22,0 UF 21,0 1.000.000 20,0 500.000 19,0 - 18,0 Oct-06 Mar-06 Dic-07 Jul-08 Feb-09 Abr-10 Ene-05 Ago-05 Sep-09 May-07 Nov-10 Affiliates Avg. Gross Salary Lineal (Avg. Gross
Slide 11: Competitiveness
Competitivieness Leader in investment performance and low cost 1st 2nd 3rd 4th 5th AFP HABITAT Account 12 MONTHS (%) 36 MONTHS (%) 60 MONTHS (%) Statement (1) A B C D E A B C D E A B C D E Dec. 2010 12,40 12,09 9,78 7,08 7,01 -0,66 2,04 3,60 4,10 4,93 5,70 6,37 6,32 5,58 5,06 Aug. 2010 11,21 11,54 9
Slide 12: Voluntary Savings Contributions (APV + CAV)
Voluntary Savings Contributions (APV + CAV)
Slide 13: Voluntary Savings (APV + CAV)
Voluntary Savings (APV + CAV) Total Asset Under Management (AUM) Dec 2010 900.000 800.000 700.000 600.000 814.028 816.934 500.000 MM$ 400.000 300.000 639.925 200.000 100.000 401.767 2.151 8.479 - Habitat Capital Cuprum Modelo Planvital Provida • Total funds administered by the AFPs in voluntary cont
Slide 14: Voluntary AUM – Growth
Voluntary AUM – Growth (2010 / 2008) 80,0% 75,0% Growth in Assets under managemet CAV 70,0% Habitat (Dec. 2010 / 2008) System 65,0% 60,0% 55,0% 50,0% 50,0% 55,0% 60,0% 65,0% 70,0% 75,0% 80,0% Growth in assets under management APV (Dec 2010 / 2008) • Between 2008 y 2010, Habitat has had the best perf
Slide 15: Growth in APV AUM
Growth in APV AUM (2003-2010) 88,9% 100,0% Assets under Management APV: 80,0% 56,2% % Var vs Previous Year 46,4% 46,2% 60,0% 40,5% 36,8% 36,8% 35,8% 34,4% 33,6% 32,4% 31,4% 28,2% 25,1% 24,8% 40,0% 23,4% 20,5% 18,1% 12,9% 10,5% 8,2% 20,0% -11,8% -7,7% -7,0% 0,0% 2003 2004 2005 2006 2007 2008 2009 201
Slide 16: Habitat: Pension Funds
Habitat: Pension Funds Assets Under Management (USDMM) & MS (Dec 2010) $ 540 $ 41 MS 33.0% MS 21.0% $ 1.175 $ 28 MS 29.2% MS 37.3% $ 34,902 MS 25.0% CCIO APV CAV Unemployment Savings VOL Note: MS: Habitat’s share in relation to the system Unemployment savings: refers to severance accounts for domest
Slide 17: Breakdown of Habitat's Funds (2010)
Breakdown of Habitat’s 5 Funds (2010) B: USD$ 8,557MM A: USD$ 7,796MM 1,062,237 Accounts 355,860 Accounts 22% 37% 20% 10% 12% 58% 12% 29% C: USD$ 15,296MM 826,570 Accounts D: USD$ 4,210MM 176,605 Accounts 19% 19% 10% 9% 14% E: USD$ 1,343MM 32,377 Accounts 16% 1% 2% 1% 67% 46% 96% F/X: US$1 = Ch$468
Slide 18: Brand Preference
Brand Preference (2008 – 2010) 28,7% 21,3% 20,9% 18,1% 16,1% 15,8% 14,9% 15,2% 13,4% 14,4% 13,9% 12,0% 11,7% 10,6% 11,1% 10,8% 8,4% 8,2% 6,9% 6,9% 6,7% 6,1% 5,3% 1,8% 1,1% 1,3% 1,5% 1,4% 0,6% S1-2008 S2-2008 S1-2009 S2-2009 S1-2010 S2-2010 Habitat Capital Provida Cuprum Planvital • Habitat has incre
Slide 19: Financial Results AFP Habitat
Financial Results AFP Habitat
Slide 20: Habitat Salary Base and Revenues from Fees
Habitat Salary Base and Revenues from Fees Evolution 2000-2010 TCC/CAGR Salary Base 2000-10 = 6,8% TCC/CAGR Revenues from Fees 2000-9 = 5,2% 300.000 TCC/CAGR Revenues from Fees 2000-10= 1,5% 250.000 MM$ / MUF 200.000 150.000 100.000 50.000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Rev
Slide 21: Habitat: Evolution of Results
Habitat: Evolution of Results (2006-2010) 75.000 55.000 35.000 15.000 -5.000 2006 2007 2008 2009 2010 -25.000 Profit Reserve Requirements EBITDAE Notes: • EBITDA: Net income before depreciation, amortization, financial costs and taxes • EBITDAE: EBITDA before return on mandatory reserve requirements
Slide 22: Operating Costs per Contributor
Operating Costs per Contributor Evolution 2005-2010 4.500 4.268 4.167 4.143 3.987 3.928 4.000 3.834 3.500 3.292 3.287 3.327 3.000 3.158 3.043 2.770 2.500 2.000 2005 2006 2007 2008 2009 2010 Habitat System - HAB Notes: • Capital: excludes amortization of intangible assets with a defined useful life (
Slide 23: % Operating Costs / Revenues from Fees
% Operating Costs / Revenues from Fees (2010) 120,0% 120,0% Operating Expenses as a % of Revenues from Fees Operating Expenses as a % of Revenues from Fees (all commissions = 1.36%) 100,0% 100,0% 80,0% 80,0% 60,0% 60,0% 40,0% 40,0% 20,0% 20,0% 0,0% 0,0% Habitat Capital Cuprum Planvital Provida Habit
Slide 24: Habitat: Price Share Evolution
Habitat: Price Share Evolution 650 1981: 1981:C.Ch.C. CChC creates creates 2010: CChC purchases AFP AFP Habitat Habitat 1MMw/ 1MM shares, Citigroup’s shares and 600 USD$2.5 shares, per share; then re-sells 14%; Mkt USD$2.5 Cap USD per share; 2.5MM Mkt Cap USD 850MM 550 Mkt Cap USD 2.5MM 500 2008: Pe
Slide 25: Habitat: Income Statement
Habitat: Income Statement December 2010 MM$ 2010 2009 VAR. % Revenues 108.949 137.931 -21,0% Gain (Loss) on Reserve Requirements 19.504 27.089 -28,0% Gain (Loss) on Disability Insurance Premium -353 -34.225 -99,0% Remuneration and Employee Related Expenses -20.770 -22.610 -8,1% Depreciation and Amor
Slide 26: Habitat: Balance Sheet
Habitat: Balance Sheet 31 December 2009 and 2010 MM$ 2010 2009 VAR % MM$ 2010 2009 VAR % CURRENT ASSETS 45.776 59.474 -23,0% CURRENT LIABILITIES 30.275 55.283 -45,2% NON CURRENT ASSETS 193.523 166.538 16,2% NON CURRENT LIABILITIES 17.281 13.391 29,0% Accrued Taxes from Reserve Reserve Requirements 1
Slide 27: Habitat: Dividend Policy
Habitat: Dividend Policy Dividend Policy since April 2007: o Distribute a minimum of 90% of “distributable net income”: o annual net income MINUS the difference earned on the required reserve in the event that it is positive (1) Policy on the Distribution of Interm Dividends: o Distribute 2 interm d
Slide 28: End of Presentation
End of Presentation AFP HABITAT Seguridad y Confianza