Afp Habitat Sa · BCS:HABITAT
Afp Habitat Sa — JP Morgan Southern Cone & Andean Conference 2013
39 slides from Afp Habitat Sa's conference presentation, June 2013
Slide 1: AFP Habitat Company Presentation
AFP Habitat Company Presentation Southern Cone & Andean Conference June 26-27 | Lima, Peru
Slide 2: Industry Overview
B® HABITAT y | Seguridad y Confianza Industry Overview
Slide 3: AFP Industry Overview
AFP Industry Overview Chilean legislation (Law Decree 3500) established a compulsory individual 1980 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 regulatory mod
Slide 4: AFP Industry Composition: 1981 – 2013
AFP Industry Composition: 1981 – 2013 1981 1990 1994 1995 1998 2004 2008 2013 (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 of UNION UNION UNION only two A
Slide 5: AFP Products Offering
AFP Products Offering CCICO (Individual Compulsory Contribution Capitalization Accounts) 2.0%1.6% 1.1% § Compulsory savings = 10% of gross salary base1 § Fees: 0.77%-2.36% of salary base (Habitat = 1.27%) APV (Voluntary Contributions) § Voluntary pension contributions § Tax benefits on amounts <= UF
Slide 6: AFP Habitat Overview
Seguridad y Confianza B® HABITAT y | AFP Habitat Overview
Slide 7: Company Overview
Company Overview Snapshot Key Figures § AFP Habitat was founded in 1981, by the § Market Capitalization: USD 1.6 bn2 Chilean Construction Chamber (Cámara § Employees: 1,2121 Chilena de la Construcción, or CChC) § 27 branches, 16 service centers and 22 § CChC controls AFP Habitat through mobile branc
Slide 8: Stock Price Evolution
Stock Price Evolution 1985-2013YTD 2011-2013YTD CLP Price (Base 100, Volume 1000 (CLP MM) 31 Dec-2010) 1981: CChC creates AFP Habitat w/ 1MM shares; 180 4,000 2013: Habitat entered MSCI LATAM Mkt Cap: CLP 100 MM Small Cap Index, reaching historical high 900 share price of CLP 1,010 160 3,500 800 140
Slide 9: AFP Habitat Compulsory Products
AFP Habitat Compulsory Products 9
Slide 10: Compulsory Products
Compulsory Products Compulsory MS Ranking 2.8% 1.3% System Habitat 1.8% (CCICO) Habitat Habitat % Revenues 95.3% 94.2% 22.7% 2 from Fees1 Affiliates2 9.4 MM 2.1 MM 22.8% 2 94.2% Contributors1 5.4 MM 1.3 MM 23.6% 2 AFP Habitat Revenues from Fees Avg. Monthly 1,218 1,307 - 2 CCICO CAV APV RP Salary (U
Slide 11: Affiliates, Contributors & Salary Base
Affiliates, Contributors & Salary Base Contributors & Affiliates Contributors & Salary Base 40% 40% 35% MS (%) Contributors (Avg. LTM Apr-2013) MS (%) Contributors (Avg. LTM Apr-2013) 35% Provida Provida 30% 30% 25% 25% Capital Capital 20% 20% 15% 15% Cuprum Cuprum 10% Modelo 10% Modelo 5% 5% Planvi
Slide 12: Affiliates, Contributors & Salary Base (Cont'd)
Affiliates, Contributors & Salary Base (Cont’d) Affiliates & Contributors (MM) UF MM 2.4 38 2.2 34 2.0 1.8 30 1.6 26 1.4 22 1.2 1.0 18 0.8 14 0.6 0.4 10 Affiliates (MM) Contributors (MM) Salary Base (Monthly Avg.) (UF MM) Source: SP, as of Apr-2013. UF (CLP): 22,940.02. 12
Slide 13: Market Share by Salary Base
Market Share by Salary Base MS (%) Monthly Contributors 26.7% 28.1% 27.4% 25.7% 30% 28.5% 27.9% 28.3% 28.4% 27.1% 27.6% 26.3% 25.8% 24.7% 22.5% 24.9% 25.1% 23.9% 25% 22.6% 24.0% 21.2% 18.7% 20% 15% 10% 5% 0% 0 - 200 200 - 400 400 - 650 650 - 850 850 - > 1,200 Total (CLP th) 1,200 Mar-2011 Mar-2012 M
Slide 14: AFP Habitat Voluntary Savings (APV & CAV)
AFP HABITAT Voluntary Savings (APV & CAV) 14
Slide 15: Voluntary Products
Voluntary Products MS Ranking 2.8% 1.3% APV System Habitat Habitat Habitat 1.8% % Revenues 2.0% 2.8% 32.1% 2 from Fees1 # Accounts2 833,256 157,344 18.8% 4 94.2% AUM 4,597 1,549 33.7% 1 (USD MM)2 AFP Habitat Revenues from Fees CCICO CAV APV RP MS Ranking CAV System Habitat Habitat Habitat % Revenues
Slide 16: AFP Habitat: Leader in Voluntary Products
AFP Habitat: Leader in Voluntary Products CLP MM 1,200,000 1,100,000 1,002,206 1,000,000 945,364 900,000 800,000 700,000 600,000 550,289 500,000 403,839 400,000 300,000 200,000 100,000 23,194 7,922 - Habitat Capital Cuprum Modelo Planvital Provida Voluntary Products = CAV & APV AUM Source: SP, as of
Slide 17: 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 # of Accounts AUM USD MM § APV AUM growth rate Apr-2013/Apr-2012: Habitat: 17.1%; AFP Industry: 7.8% § CAV AUM growth rate Apr-2013/Apr-2012: Habitat: 8.0%; AFP Industry: 3.3%
Slide 18: AFP Habitat Financial Statements
AFP HABITAT Financial Statements 18
Slide 19: Income Statement – IFRS
Income Statement – IFRS CLP MM Mar-2013 Mar-2012 Var. % Revenues 31,426 31,006 1.4% Gain (Loss) on Reserve Requirements 4,645 8,783 -47.1% Gain (Loss) on Disability Insurance Premium (31) (42) -25.3% Remuneration and Employee Related (5,673) (5,096) 11.3% Expenses Depreciation and Amortization (523)
Slide 20: Balance Sheet – IFRS
Balance Sheet – IFRS CLP MM Mar-2013 Mar-2012 Var. % CURRENT ASSETS 64,861 55,803 16.2% NON CURRENT ASSETS 225,931 210,053 7.6% Reserve Requirements 204,461 186,784 9.5% Other Non Current Assets 21,470 23,268 -7.7% TOTAL ASSETS 290,792 265,856 9.4% CURRENT LIABILITIES 14,479 11,815 22.6% NON CURRENT
Slide 21: 2012 Income Statement – IFRS
2012 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
Slide 22: Dec-2012 Balance Sheet – IFRS
Dec-2012 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 L
Slide 23: Results Evolution
Results Evolution CLP MM CLP MM 80,000 22,000 65,000 17,000 50,000 12,000 35,000 7,000 20,000 2,000 5,000 -10,000 2006 2007 2008 2009 2010 2011 2012 Mar-2012 Mar-2013 -3,000 -25,000 -8,000 Profit Profit (Loss) from EBITDAR 1 Mandatory Reserve Source: AFP Habitat Financial Statements. Financial State
Slide 24: Revenue Evolution Overview
Revenue Evolution Overview Contributors Salary Base (UF) (Average LTM Mar-2013) (Average LTM Mar-2013) Milestones Mar-2013: 25.2% 24.3% 1,266,255 25.8% 31,491,174 § Improvement in domestic 26.1% 1,240,349 28,806,007 labor market (increase in salaries and low unemployment rate) 2.1% 8.7% § Contributo
Slide 25: Operating Costs Structure
Operating Costs Structure Current Commissions All Commissions =1.27% 120.0% 120.0% 0.8% 100.0% 100.0% 80.0% 80.0% 47.9% 60.0% 0.4% 60.0% 1.1% 1.0% 2.6% 26.2% 21.0% 4.3% 40.0% 0.6% 2.1% 40.0% 18.6% 3.7% 20.9% 1.7% 1.7% 9.7% 8.4% 17.4% 16.8% 23.9% 16.8% 55.3% 0.4% 20.0% 20.0% 28.7% 27.6% 30.3% 32.4% 3
Slide 26: 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 27: AFP Habitat New Businesses
AFP HABITAT New Businesses 27
Slide 28: 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 for a 2-year period o Total of 700.000 new affiliates expected § Commercial launch took place on June 1st, 2013 § Total investment of approximately USD
Slide 29: Operation in Peru (Cont'd)
Operation in Peru (Cont’d) Economic Overview Demographics § 2012 GDP: USD 200.3 bn1 § Population: 30.1 MM1 § 2012 GDP Growth: 6.3%1 § Workforce: 10.7 MM2 § 2012 Inflation: 2.65%1 § Unemployment: 6.8%* (Lima) § Country risk premium: 169 bps3 Pension Fund Industry Overview Affiliates Contributors Cont
Slide 30: AFP Habitat Funds Performance
AFP HABITAT Funds Performance 30
Slide 31: AFP Habitat: Leader in Return on Investment
AFP Habitat: Leader in Return on Investment 1st 2nd 3rd 4th 5th 6th Account 12 MONTHS (%) 36 MONTHS (%) 60 MONTHS (%) Statements A B C D E A B C D E A B C D E Apr. 2013 3.56 2.85 3.86 4.45 4.43 1.60 2.22 3.03 4.45 4.41 0.17 1.76 3.18 3.73 4.47 Dec. 2012 6.15 4.93 4.77 4.05 3.57 2.15 2.98 5.41 3.95 5
Slide 32: AFP Habitat: Leader in Return on Investment (Cont'd)
AFP Habitat: Leader in Return on Investment (Cont’d) 1st 2nd 3rd 4th 5th 6th AF P CAP IT AL_Ranking AFP CUPRUM_Ranking A F P MODELO_Ranking Ac c o unt s 12 MONT HS 36 MONT HS 60 MONT HS Ac c ount s 12 MONT HS 36 M ONT HS 60 M ONT HS Ac c ount s 12 MONT HS St a t e ment A B C D E A B C D E A B C D E
Slide 33: AFP Habitat Funds Breakdown
AFP Habitat Funds Breakdown Fund A: USD 6.9 bn Fund B: USD 8.1 bn Fund C: USD 16.3 bn 17% 22% 19% 20% 39% 9% 13% 15% 13% 59% 28% 46% Fund D: USD 5.7 bn E: USD 5.9 MM 0% 2% 1% 7% 11% 11% Total: USD 42.9 bn 71% 97% Int'l Stocks Local FI Int'l FI Local Stocks Source: SP, as of May-2013. F/X (CLP/USD):
Slide 34: AFP Habitat Commercial Highlights
AFP HABITAT Commercial Highlights 34
Slide 35: New Services since 2012-2013
New Services since 2012-2013 Habitat Móvil 22 mobile branches 12 Branches opening Coverage: 176 counties on Saturday (comunas) mornings New contract signed with Website chat service two financial institutions in order to increase the pension payment Business hours Online Appointment extension in the
Slide 36: Contact with our Customers
Contact with our Customers We serviced over 500 th customer visits in our branch Branch offices until April 2013 Offices Nationwide coverage currently includes 27 branches, 16 service centers and 22 mobile branches Up until Jan-Apr 2013, our website visits totaled 2.9 Internet & MM and over 3 MM tra
Slide 37: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) This new online chat assistance service allowed over 19 Website thousand contacts from Jan-Apr 2013 Chat In Q12013 over 500 th clients were serviced through Habi-Express the self-service Habi-Express machines (Self-Service) • 64 self-service machines located in br
Slide 38: Contact with our Customers (Cont'd)
Contact with our Customers (Cont’d) Account In February 2013, over 2.0 MM account statements Statements were sent to our affiliates 37% of these were emailed Social As of May, 22nd, 2013 we had over 666 followers on Facebook and Twitter Networks First AFP to use social networks As of April, 2013 Hab
Slide 39: AFP Habitat
AFP Habitat Company Presentation Southern Cone & Andean Conference June 26-27 | Lima, Peru
AFP Habitat — JP Morgan Southern Cone & Andean Conference 2013 on 6ix