Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — Q3 2015 Earnings Presentation
51 slides from Afp Habitat Sa's earnings presentation, November 2015
Slide 1: Company Presentation Q3-2015 Results
Company Presentation Q3-2015 Results November 2015
Slide 2: Agenda
Agenda Recent Events 2015 Highlights Appendix 2
Slide 3: Agenda
Agenda Recent Events 2015 Highlights Appendix 3
Slide 4: Bravo Commission presents Proposals regarding the Pension Reform
Bravo Commission / Presidential Advisory Board presents their Proposals regarding the Pension Reform • On Monday, September 14th the Bravo Commission released its report regarding potential Reforms to the Chilean Pension System. • The report presented to the President contains 58 proposals. • Presid
Slide 5: Bravo Commission Pension Proposals 2015
Bravo Commission Pension Proposals 2015 Nº Proposal 1 Increase the coverage of the Solidarity Pension System to at least 80% of the population. Increase the amount of the Basic Solidarity Pension and the Maximum Pension with Solidarity 2 Contribution by 20%. Change the mechanism to access the benefi
Slide 6: Bravo Commission Pension Proposals 2015 - cont.
Bravo Commission Pension Proposals 2015- cont. Nº Proposal 15 Raise the current low fines for employers that discount but don't transfer their employees contributions. Extend the mandatory legal contribution period to the effective retirement age, in this case to an age greater 16 than 60 years of a
Slide 7: Bravo Commission Pension Proposals 2015 - cont.
Bravo Commission Pension Proposals 2015- cont. Nº Proposal Establish that the intermediary investment commissions are fully assumed by the AFP´s and not by the 30 affiliates. Creation of a state-owned AFP, which would follow the same rules and guidelines as the privately owned 31 AFP´s, with a mecha
Slide 8: Bravo Commission Pension Proposals 2015 - cont.
Bravo Commission Pension Proposals 2015- cont. Nº Proposal 46 Establish that Pension Fund Administrators must maintain Pension Education programs. Identify and implement strategic objectives, goals and indicators of the program and accomplishments 47 related to the Social Security Education Fund (FE
Slide 9: Agenda
Agenda 2015 Highlights Appendix 9
Slide 10: Key Indicators
Key Indicators Monthly Contributors Average Monthly Salary Base Contributors Mkt % Total CLP th TOTAL AUM1 APV AUM1 CAV AUM1 Source: AFP Habitat. (1): Figures in CLP converted to USD at average transactional Fx rate on previous business day 10 (CLP/USD) 704.68 as of September 30th, 2015.
Slide 11: Consolidated Income Statement
Consolidated Income Statement CLP MM sep-15 sep-14 Var 15/14 Var 15/14 % Revenues 114.165 104.635 9.530 9,1% Remuneration and Employee Related Expenses (26.057) (21.417) (4.640) 21,7% Other Operating Expenses (22.772) (19.606) (3.166) 16,1% Operating Expenses (48.829) (41.023) (7.806) 19,0% Deprecia
Slide 12: Peru Operation Pro-Forma Adjustment
Peru Operation Pro-Forma Adjustment CLP MM Consolidated IS Perú Effect Adjusted IS Adj Var 15/14 Adj Var 15/14 % Revenues 114.165 2.921 111.244 6.609 6,3% Remuneration and Employee Related Expenses (26.057) (1.538) (24.519) (3.102) 14,5% Other Operating Expenses (22.772) (2.381) (20.391) (785) 4,0%
Slide 13: Revenues Breakdown
Revenues Breakdown CLP MM sep-15 % sep-14 % Var 15/14 Var 15/14 % Revenues From Fees (Chile) Mandatory (CCICO) 101.317 93,3% 95.454 93,8% 5.862 6,1% APV 3.509 3,2% 3.124 3,1% 384 12,3% CAV 2.137 2,0% 1.776 1,7% 361 20,3% Pensions 1.554 1,4% 1.354 1,3% 200 14,7% Other Fees 29 0,0% 86 0,1% (57) -66,5%
Slide 14: Operating Expenses Breakdown
Operating Expenses Breakdown CLP MM sep-15 % sep-14 % Var 15/14 Var 15/14 % Administrative Employees Remuneration (12.364) 47,5% (11.561) 54,0% (803) 6,9% Sales Employees Remuneration (8.458) 32,5% (4.656) 21,7% (3.802) 81,7% Employee Short-Term Benefits (3.276) 12,6% (3.334) 15,6% 58 -1,8% Post-Emp
Slide 15: Differentiated Service Offering
Differentiated Service Offering Habitat Móvil 13 Branches opening 22 mobile branches on Saturday mornings Coverage: 186 comunas and 188 localidades New web services for Website chat service voluntary savings Business hours extension Online Appointment in the call center Reservation Friday afternoon
Slide 16: 2015 Consolidated Balance Sheet
2015 Consolidated Balance Sheet CLP MM sep-15 dic-14 Var % Cash and Equivalents 44.167 44.321 -0,3% Other Current Assets 7.496 8.534 -12,2% Total Current Assets 51.663 52.855 -2,3% Reserve Requirements 271.976 256.879 5,9% Other Non Current Assets 22.493 18.075 24,4% Total Non Current Assets 294.470
Slide 17: Consolidated Results Evolution
Consolidated Results Evolution Revenues EBITDAR CLP MM CLP MM EBITDA / Reserve Requirement Net Profit CLP MM CLP MM 17 Source: AFP Habitat S.A. (“AFP Habitat” or “Habitat”) Consolidated Financial Statements under IFRS and GAP.
Slide 18: AFP Habitat: Return on Investment
AFP Habitat: 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 Aug- 15 - 0.68 0.04 1.81 2.51 1.60 8.20 6.64 6.80 6.21 4.69 4.59 4.02 4.64 4.80 4.43 Apr- 15 10.29 8.90 8.85 7.04 5.26 7.23 5.95 6.
Slide 19: Return on Investment (Cont'd)
AFP Habitat: Return on Investment (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CAPIT AL_Ranking AF P CUPRUM_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 (%) AF P MODELO_Ranking St at ement A B C D E A B C D E A B C D E St at ement A B
Slide 20: Agenda
Agenda 2015 Highlights Appendix 20
Slide 21: 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 21
Slide 22: Stock Performance
Stock Performance 1985-2015YTD 2010-2015YTD Price (Base 100, Volume Traded CLP 31 Dec-2010) (CLP MM) 1000 November 10th, 2015: share price of CLP 818 900 2013: Habitat entered MSCI LATAM Small Cap Index, reaching historical high 800 share price of CLP 1,010 2010: CChC purchases Citigroup’s shares 70
Slide 23: 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 23
Slide 24: Mandatory Products Indicators
Mandatory Products Indicators Affiliates Total Contributors Affiliates (MM) MS (%) Total Contributors (MM) MS (%) AUM* Contributors / Affiliates MS (%) Percentage AUM (USD bn) Source: Superintendencia de Pensiones as of Sep-2015 Fx (CLP/USD) 704.26 24
Slide 25: Mandatory Products Indicators (Cont'd)
Mandatory Products Indicators (Cont’d) Average Monthly Salary Monthly Salary Base USD FX (Pesos/Dollar) UF MM 8.6% Average Monthly Salary 8.6% higher than Salary Base has grown at: industry average, as of Sep-2015 7.9% per year since Sep-04 8.2% per year since Sep-09 Source: SP as of Sep-201
Slide 26: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 30% 26.2% 26.3% 23.4% 25.2% 22.4% 25% 19.1% 17.3% 20% 15% 10% 5% 0% (CLP th) 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,000 Total 1,000 Sep-2015 Sep-2014 Sep-2013 Sep-2012 Sep-2011 Sep-2010 Sep-2009 Sep-2008 Sep-2007 Sep-2006 AFP Habitat
Slide 27: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 35% 35% 30% Provida 30% Provida MS (%) Contributors (Avg. LTM Sep-2015) MS (%) Contributors (Avg. LTM Sep-2015) 25% 25% 20% 20% Capital Capital 15% 15% Cuprum Modelo Modelo 10% 10% Cuprum 5% 5% Planvital Plan
Slide 28: 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 28
Slide 29: Voluntary Products Indicators
Voluntary Products Indicators # of APV Accounts AUM APV # of accounts MS (%) USD th MS (%) # of CAV Accounts AUM CAV # of accounts MS (%) USD th MS (%) 29 Source: SP as of Sep-2015.
Slide 30: AFP Habitat: Voluntary Products
AFP Habitat: Voluntary Products CLP MM 1,395,763 1,400,000 1,200,000 1,000,000 800,000 600,000 572,033 545,733 400,000 200,000 34,170 15,409 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM The regulator as well as industry players are constantly seeking ways
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: AFP Industry Overview
AFP Industry Overview 1980 Chilean legislation (Law Decree 3500) established a compulsory individual capitalization system with privately-managed pension funds (AFP) New AFP system launched with 12 players 1981 1985 AFPs authorized to invest in corporate stocks 2000 In accordance with regulatory mod
Slide 33: AFP Industry Composition: 1981 – 2015
AFP Industry Composition: 1981 – 2015 1981 1990 1994 1995 1998 2004 2008 2015 (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 UNION UNION UNION of only two A
Slide 34: 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: 0.47%-1.54% of salary base the AFP (Habitat = 1.27%) Fee: 0.95%
Slide 35: 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 35
Slide 36: Company Overview
Company Overview Snapshot Key Figures AFP Habitat was founded in 1981, by the Market Capitalization: USD 1.2 bn5 Chilean Construction Chamber (Cámara Employees: 1,7581 Chilena de la Construcción, or CChC) 27 branches, 6 service centers, 22 mobile CChC controls AFP Habitat through branches
Slide 37: Revenues from Fees Breakdown
Revenues from Fees Breakdown Sep-13 Sep-15 2.3%1.8%1.6% Sep-13 Sep-15 AFP 94.2% Industry (exc. Habitat) CCICO APV CAV Pensions Other 37 Source: SP. AFPs’ financial statements.
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: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 3 2 1 3 2 1 As of Q2-2015 AFP Habitat is one of the most efficient AFP,´s under current commissions and when adjusting for commissions. Habitat has the 3rd lowest CCICO fee in the industry. Source: SP, Individual Financial Statemen
Slide 40: 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 40
Slide 41: 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) • Our Commercial launch took place on June 1st, 2013 • In December, 2014 AFP Habitat proudly won the second affiliates auction i
Slide 42: Peruvian Operations (Cont'd)
Peruvian Operations (Cont’d) Affiliates Anual Return on Investment Affiliates (th) MS% Annualized Nominal Returns' Sept. 2015 / Sept. 2014 Habitat Integra Prima Profuturo Fund 1 N.A. 3,15% 1,54% 3,42% Fund 2 2,51% 0,54% 0,04% 2,16% Fund 3 N.A -4,89% -5,20% -1,66% • Due to regulations we are unable t
Slide 43: 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 43
Slide 44: Contact with our Customers
Contact with our Customers We serviced over 885th customer visits in our branches Branch until September 2015 Offices Nationwide coverage currently includes 26 branches, 6 service centers, 22 mobile branches and 3 stands in malls. Up until Sept. 2015, our website visits totaled 10 MM Internet Includ
Slide 45: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This online chat assistance service allowed over 89 Website thousand contacts from Jan-Sept 2015 Chat Up until September 2015 over 2.2MM transactions were Habi-Express serviced through the self-service Habi-Express machines (Self-Service) 64 self-service machines
Slide 46: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In October, 2015 over 1.4 MM account statements Statements were sent to our affiliates 51% of these were emailed Social As of September, 2015 we had over 711,803 followers on Facebook and Twitter Networks First AFP to use social networks As of September, 2
Slide 47: 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 47
Slide 48: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 5.6 bn Fund B: USD 6.4 bn Fund C: USD 14.6 bn Fund D: USD 6.3 bn E: USD 5.6 bn Total: USD 39.2 bn 48 Source: SP as of Sep-2015. Fx (CLP/USD): 704.68.
Slide 49: 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 49
Slide 50: 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 51: Company Presentation Q3-2015 Results
Company Presentation Q3-2015 Results November 2015