Afp Habitat Sa · BCS:HABITAT

Afp Habitat Sa — Larraín Vial 7th Andean Conference 2013

39 slides from Afp Habitat Sa's conference presentation, March 2013

  1. Slide 1: Company Presentation

    Company Presentation March 2013

  2. Slide 2: 2012 Highlights

    nh AFP° > HABITAT Seguridad y Confianza 2012 Highlights

  3. Slide 3: 2012 Highlights

    2012 Highlights  In June 2012, AFP Habitat lowered its CCICO commissions from 1.36% to 1.27%, setting a precedent in the industry  It also lowered its RP fee from 1.25% to 0.95%, establishing the lowest RP fee in the market  The Company’s Net Profit reached CLP 74,576 MM, showing an increase of 2

  4. Slide 4: Industry Overview

    nh AFP° > HABITAT Seguridad y Confianza Industry Overview

  5. Slide 5: AFP Industry Overview

    AFP Industry Overview  1980: Chilean legislation (Law Decree 3500) established a compulsory individual 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 re

  6. Slide 6: Industry Composition: 1981 – 2012

    Industry Composition: 1981 – 2012 1981 1990 1994 1995 1998 2004 2008 2012 (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 the SN CRISTOBAL only

  7. Slide 7: AFPs Product Offerings

    AFPs Product Offerings CCICO (Individual Compulsory Contribution 2.0% Capitalization Accounts) 1.7%  Compulsory savings = 10% of gross salary base*  Fees: 0.77% - 2.36% of salary base (Habitat = 1.27%) 1.1% APV (Voluntary Contributions)  Voluntary pension contributions  Tax benefits on amounts <

  8. Slide 8: Funds Breakdown

    Funds Breakdown B: USD 28,320 MM A: USD 27,275 MM 1,898,250 Accounts 894,515 Accounts 21% 21% 38% 13% 11% 59% C: USD 63,028 MM 9% 28% 1,568,279 Accounts 17% 22% D: USD 24,312 MM 277,285 Accounts 14% 12% 8% 10% E: USD 19,086 MM 233,503 Accounts 1% 2% 1% 47% 70% 96% Domestic Fixed Income Foreign Fixed

  9. Slide 9: AFP Habitat Overview

    a nh AFP° HABITAT Seguridad y Confianza AFP Habitat Overview

  10. Slide 10: Company Overview

    Company Overview  AFP Habitat was founded in 1981, by the Chilean Construction Chamber (Cámara Chilena de la Construcción, or CChC)  CChC controls AFP Habitat through Inversiones La Construcción (ILC)  It is the 2nd largest AFP, in terms of affiliates, contributors, and assets under management (A

  11. Slide 11: Stock Price Evolution

    Stock Price Evolution 950 1981: 1981:C.Ch.C. CChC creates creates 2010: CChC purchases 900 AFP AFP Habitat Habitat 1MMw/ 1MM shares, Citigroup’s shares and USD$2.5 shares; per share; 850 then re-sells 14%; Mkt Mkt Cap Cap CLP USD1002.5MM MM Mkt Cap CLP 475,000 MM 800 750 2008: Pension 700 Reform int

  12. Slide 12: AFP Habitat Compulsory Products

    AFP Habitat Compulsory Products

  13. Slide 13: Compulsory Products

    Compulsory Products Compulsory MS Ranking System Habitat 2.6% 1.5% (CCICO) Habitat Habitat % Revenues 1.6% 95.2% 94.3% 23.3% 2 from Fees Affiliates 9.3 MM 2.1 MM 23.2% 2 94.3% Contributors 5.2 MM 1.3 MM 23.9% 2 Avg. Monthly 1,149 1,203 - 2 AFP Habitat Revenues from Fees Salary (USD) CCICO CAV APV RP

  14. Slide 14: Affiliates, Contributors & Salary Base

    Affiliates, Contributors & Salary Base 45% 45% 40% 40% Provida Provida MS Contributors (Avg. Jan – Dec 2012) MS Contributors (Avg. Jan –Dec 2012) 35% 35% 30% 30% Habitat Habitat 25% 25% Capital Capital 20% 20% 15% 15% Cuprum Modelo 10% 10% Cuprum Modelo 5% 5% Planvital Planvital 0% 0% 0% 5% 10% 15%

  15. Slide 15: Affiliates, Contributors & Salary Base (Cont’d)

    Affiliates, Contributors & Salary Base (Cont’d) Affiliates & Contributors (MM) UF MM 2,4 34 2,2 30 2,0 1,8 26 1,6 1,4 22 1,2 18 1,0 0,8 14 0,6 0,4 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Affiliates (MM) Contributors (MM) Salary Base (Monthly Avg.) (UF MM) F/X: USD 1 = CLP

  16. Slide 16: CCICO Share by Income Range

    CCICO Share by Income Range % Monthly Contributors 30% 28.2% 27.4% 27.2% 25.2% 23.9% 25% 23.1% 20.3% 20% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1.200 Total (CLP th) 1.200 As of December 2012, AFP Habitat had:  26.0% of contributors with a monthly salary base over CLP 850 th (US

  17. Slide 17: AFP Habitat Voluntary Savings (APV & CAV)

    AFP HABITAT Voluntary Savings (APV & CAV)

  18. Slide 18: Voluntary Products

    Voluntary Products MS Ranking 2.6% 1.5% APV System Habitat Habitat Habitat % Revenues 1.6% 2.0% 2.6% 30.0% 2 from Fees * # Accounts 797,777 151,038 18.9% 4 94.3% AUM (USD MM) 4,309 1,433 33.3% 1 AFP Habitat Revenues from Fees MS Ranking CCICO CAV APV RP CAV System Habitat Habitat Habitat % Revenues

  19. Slide 19: AFP Habitat: Leader in Voluntary Products

    AFP Habitat: Leader in Voluntary Products CLP MM 947.351 950.000 903.165 855.000 760.000 665.000 570.000 528.127 475.000 397.835 380.000 285.000 190.000 95.000 18.025 7.678 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM F/X: USD 1 = CLP 478.6 ; UF 1 = CLP 22,591

  20. Slide 20: Voluntary AUM Evolution

    Voluntary AUM Evolution # of accounts USD MM 600.000 2.500 500.000 2.000 400.000 1.500 300.000 1.000 200.000 500 100.000 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 # of Accounts AUM USD MM  APV AUM growth rate Dec-2012 / Dec-2011: Habitat: 18.5%; AFP Industry: 9.3%  CAV AUM growth

  21. Slide 21: Funds’ Performance

    AFP HABITAT Funds’ Performance

  22. Slide 22: AFP Habitat: Leader in Return on Investment

    AFP Habitat: Leader in Return on Investment 1st 2nd 3rd 4th 5th 6th AFP HABITAT Account 12 MONTHS (%) 60 MONTHS (%) Statement A B C D E A B C D E Dec-2012 6,15 4,93 4,77 4,05 3,57 -1,45 0,69 2,46 3,42 4,63 Aug-2012 -0,71 -0,28 0,78 2,04 2,71 -2,16 -0,03 1,75 3,00 4,81 Apr-2012 -7,30 -4,69 -1,89 0,64

  23. Slide 23: AFP Habitat: Leader in Return on Investment (Cont’d)

    AFP Habitat: Leader in Return on Investment (Cont’d) 1st 2nd 3rd 4th 5th 6th AFP CAPITAL_Ranking AFP PLANVITAL_ Ranking Accounts 12 MONTHS 60 MONTHS Accounts 12 MONTHS 60 MONTHS Statement A B C D E A B C D E Statement A B C D E A B C D E Dec-2012 3 4 4 5 4 3 5 5 3 2 Dec-2012 1 1 1 3 5 1 2 2 5 5 Aug-

  24. Slide 24: AFP Habitat Funds Breakdown

    AFP Habitat Funds Breakdown B: USD 7,947 MM 434,464 Accounts C: USD 15,984 MM A: USD 6,625 MM 21% 385,477 Accounts 215,673 Accounts 34% 17% 18% 21% 12% 13% 9% 56% 33% 14% 52% D: USD 5,601 MM E: USD 5,771 MM 83,930 Accounts 67,898 Accounts 8% 7% 0% 1% 1% 11% 98% 74% Domestic Fixed Income Foreign Fixe

  25. Slide 25: AFP Habitat Financial Statements, as of December 2012

    AFP HABITAT Financial Statements, as of December 2012

  26. Slide 26: Income Statement – IFRS

    Income Statement – IFRS CLP MM Dec 2012 Dec 2011 Var % Revenues 121,301 114,486 6.0% Gain (Loss) on Reserve Requirements 13,060 -1,846 - Gain (Loss) on Disability Insurance Premium -141 -817 -82.7% Remuneration and Employee Related Expenses -22,626 -20,530 10.2% Depreciation and Amortization -1,907

  27. Slide 27: Balance Sheet – IFRS

    Balance Sheet – IFRS CLP MM Dec 2012 Dec 2011 Var % Current Assets 59,840 49,882 20.0% Non Current Assets 219,180 198,728 10.3% Reserve Requirements 197,779 176,376 12.1% Other Non Current Assets 21,401 22,353 -4.3% TOTAL ASSETS 279,020 248,610 12.2% CLP MM Dec 2012 Dec 2011 Var % Current Liabilitie

  28. Slide 28: Results Evolution

    Results Evolution CLP MM 80.000 65.000 50.000 35.000 20.000 5.000 -10.000 2006 2007 2008 2009 2010 2011 2012 -25.000 Profit Profit (Loss)from EBITDAR * Mandatory Reserve *EBITDAR: EBITDA before return on mandatory reserve requirements. EBITDA: Net income before depreciation, amortization, financial

  29. Slide 29: Contributors and Salary Base Growth

    Contributors and Salary Base Growth Contributors Salary Base (UF) (Average Jan-Dec) (Average Jan-Dec) 25.4% 24.6% 25.9% Milestones December 2012: 1,267,888 25.5% 30,881,177 1,232,404 28,205,740  Improvement in domestic labor market (increase in salaries and low unemployment rate) 2.9% 9.5%  Contri

  30. Slide 30: % Operating Costs / Revenues from Fees

    % Operating Costs / Revenues from Fees 120,0% 120,0% (All Commissions = 1.32%) 0,7% 100,0% 100,0% 48,0% 80,0% 80,0% 1,0% 0,9% 0,4% 60,0% 60,0% 2,6% 1,6% 0,5% 27,3% 30,5% 1,6% 28,1% 2,2% 1,5% 1,6% 0,5% 40,0% 40,0% 11,7% 13,0% 23,3% 17,7% 25,0% 20,1% 58,9% 17,7% 21,3% 20,0% 20,0% 29,5% 33,6% 32,0% 25,

  31. Slide 31: 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

  32. Slide 32: AFP Habitat New Businesses

    a = AFP° HABITAT Seguridad y Confianza AFP HABITAT New Businesses

  33. Slide 33: Operation in Peru

    Operation in Peru  On December 20, 2012, AFP Habitat was awarded the first new affiliates auction in Peru  AFP Habitat to receive all new entrants into the formal sector, for a 2- year period o 700.000 new affiliates expected along that period  Mixed fee: o 0.47% fee of gross salary base (no cap

  34. Slide 34: AFP Habitat Commercial Highlights

    AFP HABITAT Commercial Highlights

  35. Slide 35: New Services Since 2012

    New Services Since 2012 Habitat Móvil 22 mobile branches 10 Branches opening Coverage: 50 counties on Saturday mornings (comunas) New contract signed with Website chat service two financial institutions in order to increase the pension payment Business hours extension in the call center Friday after

  36. Slide 36: Contact with our Customers

    Contact with our Customers We serviced over 1.6 MM customer visits in our branch offices Branch during year 2012 Offices Nationwide coverage currently includes 27 branches, 16 service centers and 22 mobile branches In 2012, our website visits totaled 4.8 MM and over 13.2 MM Internet & transactions w

  37. Slide 37: Contact with our Customers (Cont’d)

    Contact with our Customers (Cont’d) In 2012 over 198,000 transactions were executed via Smart smartphones Phones 2.5x the activity observed in year 2011 In 2012 over 2 MM clients were serviced through the self- Habi-Express service Habi-Express machines (Self-Service) • 64 self-service machines loca

  38. Slide 38: Contact with our Customers (Cont’d)

    Contact with our Customers (Cont’d) Account In 2012, over 4.0 MM account statements were sent to our Statements affiliates 43% of these were emailed Social As of Dec-2012, over 30,000 followers on Facebook and Twitter Networks First AFP to use social networks Habitat has 68 account executives dedica

  39. Slide 39: Company Presentation

    Company Presentation March 2013

AFP Habitat — Larraín Vial 7th Andean Conference 2013 on 6ix