Deutsche Bank Conferences21.q4cdn.com › 417792851 › files › doc_presentations_es › ...Source: Superintendencia de Pensiones, as of December 31st, 2013 Contributors market share

Estrictamente Privado y Confidencial

1Privado y Confidencial

Deutsche Bank ConferenceMay-14

ILC Page 2

� Habitat initiated operations

in Peru, after being awarded

the 1st new affiliates auction

for 2 years

2012

June 1st

2013

ILC’s Highlights

� ILC sold 51% of Desarrollos

Educacionales

� ILC acquired 67% of the

shares of Corp Group Vida

Chile S.A.

� ILC placed the

largest IPO in Chile

(US$ 468 million)

June

18th

2013

September

13th 2013

November

18th 2013

� Vida Cámara was awarded

in the D&S insurance

auction in Peru

ILC Page 3

Ownership and stock price

17.2%performance difference as of April 29 th, 2014

Ownership structure (Dec-13)Market Cap (MMUS$)

Stock price (Ch$)

Net Income 12M13 (US$* Th)

1,320

7,400

160,890

P/E 8.8

P/BV 1.6

April 29th 2014

-12.4%

4.8%

Evolution of the stock price

Dividend Pay Out 60%-80%

*Exchange rate of Ch$524.61 as of December 31tt, 2013

-30,0%

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

40,0%

ILC IPSA


4Privado y ConfidencialILC Page 4

December, 2013

Exchange rate: CLP 524,61 per 1USD(*) Since June 18th, 2013

� Pension funds administration (AFP)

� Life Insurance Company (Annuities)

Retirement Sector

� Health insurance institution (ISAPRE)

� Hospital healthcare services

� Outpatient healthcare services

� Supplemental health insurance

Healthcare and life

Insurance Sector

� Network of nine private schools and one

subsidized private school

� IT and outsourcing services

Other Business

US$601.6 mm

Revenues

US$ 64.9 mm

N.A.

Net Income

US$ -2.7 mm

67.0%

Ownership

99.9%

US$595.3 mm

US$ 366.8 mm

US$ 15.3 mm

US$ 7.2 mm

99.9%

89.9%

US$6.9 mm US$0.9 mm49.0%*

32.9%

Company overview

US$246.6 mm US$ 151.5 mm 67.5%



Revenues come from…

Gross Salary

Net Salary

Taxes: Range 0% - 40%

$1.27%

Commission fee

Supplemental health insurance

7%

Additional health contribution

Pension Fund Retirement

Habitat average: Ch$ 638,923 (US$ 1,218)Chile average: Ch$ 593,180 (US$ 1,131)

Source: Superintendencia AFP, as of Dec-13; exchange rate $524.61

10%

Voluntary savings

Annuity

SavingsRetirement

Programmed Withdrawal

Mandatory Health Insurance

Voluntary Health Insurance

Insurance Healthcare



Our Business



Habitat

Income Statement (Th.US$*)

Revenues

Cost of sales

Dec – 13

246,619

-

EBITDAE**

SG&A

161,670

(102,277)

Operating Income 144,043

Gross Profit 246,619

Dec – 12

231,221

-

163,905

(86,388)

144,564

231,221

Net Income 151,490 142,182

Var. %

6.7%

-

-1.4%

18,4%

-0.4%

6.7%

6.5%

Gain (loss) of the encaje 27,924 24,896 12.2%

• Created in 1981 under the newprovisional system

• The only AFP under the samecontroller through all its history

• 67.5% owned by ILC

• One of the most efficient AFP interms of cost control and thesecond cheapest on fees

**EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat´s encaje.* Exchange rate of Ch$524,61 as of December 31st,2013.



Habitat: Key considerations

� Salary base increase

� Voluntary savings products

� Incorporation of independent workers to the system

� Capture of transfers from competitors

Products offered

Mandatory individual capitalization account� Contributions = 10% of gross salary (capped at

~US$3,000 per month)

Voluntary pension contributions� Tax exempt, up to a certain amount

Voluntary savings account� Allows withdrawals at any time

Programmed withdrawals� Pension payment option in which retirees maintain

their account with the AFP

Ample growth opportunities

Total AUM = US$162.7 bnSource: Superintendencia de Pensiones, as of December 31st, 2013

Contributors market share (as of September 2013)

Source: Superintedencia de Pensiones1 Contributors / affiliates

Contribution rate1

53,0% 57.9% 57,7% 50.1% 77,0% 49,0%



0

50

100

150

200

250

300

350

0,0% 30,0% 60,0% 90,0% 120,0%

Net Income (Ch$ mm)

Fee income (US$ million) & Expenses % (Dec – 2013)

Current mandatory fee (Dec – 2012)

Operating expenses & % fee income (Dec-13)

Habitat: Key considerations

Based on actual figures

Adjusted to Habitat’s 1.27% fee rate

Habitat

1.27%

Capital

1.44%

Cuprum

1.48%

Provida

1.54%

Planvital

2.36%

Modelo

0.77%

Fee

Inco

me

(US

$ m

illio

n)

Expenses % Fee Income

Habitat

247

Capital

220

Cuprum

190

Provida

327

Planvital

42

Modelo

39

41.5% 68.9%39.1% 54.2% 50.3%40.7%

CAGR ex-encaje (‘09-’13) 7.5%



AFP Industry as of Dec-13

Evolution of Contributors

Contributor average salary

Evolution of Habitat AUM (US$ Million)

Source: Superintendencia de Pensiones, as of December 31, 2013

Annual growth of Gross Salary(nominal terms)

429.034 442.013

471.108

507.869

547.553

593.180

429.414

442.068

475.543

523.877

578.907

638.923

400.000

450.000

500.000

550.000

600.000

650.000

700.000

Dic 08 Dic 09 Dic 10 Dic 11 Dic-12 Dic-13

Industria Habitat

Ch$

CAGR: 8.3%

CAGR: 8.5%



AFP Industry as of Dec-13

Contributors Evolution: Salary < CL$500 Th. Contributors Evolution: Salary > CL$1,400 Th.

Contributors Market Share Evolution: Salary < CL$500 Th.

Contributors Market Share Evolution: Salary > CL$1,400 Th.



Habitat: Peru

� December 20 th 2012, Habitat was awarded in the first auction in

Peru

� All the new entrant into the formal sector contribu te into Habitat

for two years

� 600,000 new beneficiaries expected in two years

� As of June 1 st 2013, Habitat started operations in Peru.

Mandatory mix fee rate after the first auction (%)

Ample growth opportunities

Total AUM = US$36.2 bnSource: SBS as of December 2013

Contributors market share (as of December 2013)

Prima

1,55%

Over the contribution

Integra

Over the AUM

1,51%

1,49%Profuturo

PROMEDIO

0,47%Habitat

1,26%

1,20%

1,90%

1,20%

1,25%

1,39%

Source: Superintendencia de Banca, Seguros y AFP del PerúSource: SBS as of December 2013



Potential synergies in the health business

7% of the gross salary

is the mandatory

contribution

* The GES plan cost 0.325 U.F since July 1st, 2013

Full coverage of 80 diseases in an established network *

10% of the gross salary

is the average contribution

Average monthly contribution per contributor: USD $137.4

Medical Bill

Monthly primus

Co-payment between the company and the employee

Average monthly contribution per beneficiary: USD $18.7

% covered by:

% covered by:

% of the Net Salary

% covered by the person

or

USD 15.2**



Consalud

Dec – 13

595,338

(507,819)

(78,466)

13,476

87,519

Dec – 12

524,923

(435,994)

(69,481)

22,793

88,929

15,250 19,653

Var. %

13.4%

16.5%

12.9%

-40.9%

-1.6%

-22.4%

Income Statement (Th. US$*)

Revenues

Cost of sales

SG&A

Operating Income

Gross Margin

Net Income

• Created in 1984 under the newprovisional health system(Isapre)


• The price of GES rose to UF0.325 due to the inclusion of 11new diseases, since July 1st,2013

22,368 29,660 -24.6%EBITDA**

**EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost.*Exchange rate of Ch$524,61 as of December 31st, 2013.



Products offered

Consalud: Key considerations

� Growing demand prospects

� Leading private health insurance provider and strong market position

� Strong brand recognition

� Continuous innovation and incorporation of new technologies

� First choice provider for people moving from the public to the private health insurance system

Medical plans

� Open network plans� Preferred provider plans� Closed network plans

Complementary product offerings

� Additional coverage for catastrophic diseases

� Dental plans� Pharmacy plans

18.6%

18.2%

13.6%

29.8%

19.7%

Isapre: 3.06 mm

Fonasa D: 3.0 mm

Fonasa C: 2.2 mm

Fonasa B: 4.9 mm

Fonasa A: 3.2 mm

Source: Superintendencia de Salud, as of December 2013Others includes Vida Tres and Ferrosalud.

Total Contributors = 1,683,587

Source: Fonasa, as of December, 2012



Consalud: Key considerations

Source: Superintedencia de Salud and ILC 1 Operating revenues divided by the number of contributors. Exchange rate of Ch$521.64 as of December 31th,2013; 2 Operating expenses divided by operating revenues

Number of Contributors (as of December 2013) Average monthly contribution 1 in US$ (Dec-13)

Loss ratio 2 (as of December 2013)Number of Beneficiaries (as of December 2013)

137,4150,4

163,5170,0

200,7

244,1

0,0

50,0

100,0

150,0

200,0

250,0

300,0

Consalud Másvida Banmédica Cruz Blanca Colmena Vida Tres

84,7%

86,8%87,0%

87,5%

88,5%

90,0%

82,0%

83,0%

84,0%

85,0%

86,0%

87,0%

88,0%

89,0%

90,0%

91,0%

Consalud Vida Tres Banmédica Másvida Cruz Blanca Colmena



Consalud: Operating data

Mandatory contributions (Ch$ million)

Voluntary contributions (Ch$ million)

Dec- 11

182,697

62,748

TOTAL (Ch$ million) 248,798

Others (Ch$ million) 3,353

Dec-12

208,126

66,793

275,380

461

Dec-13

231,374

80,426

312,320

520

Source: Superintedencia de Salud.

639,776

671,571

675,665

388,883

410,053

462,241

340,000

360,000

380,000

400,000

420,000

440,000

460,000

480,000

620,000

630,000

640,000

650,000

660,000

670,000

680,000

Dec-11 Dec-12 Dec-13

BeneficiariesN° Beneficiaries Revenues / Beneficiary

(Ch$)



Red Salud

Dec-13

366,798

(287,066)

(54,562)

25,171

79,733

Dec-12

312,252

(246,111)

(48,634)

17,508

66,141

7,232 4,502

Var. %

17.5%

16.6%

12.2%

43.8%

20.5%

60.6%


Revenues

Cost of sales

SG&A

Operating Income

Gross Margin

Net Income

• One of the main privatehealthcare providers, reachingclose to 18.5% of the privatebeds in Chile


• National coverage through anetwork of 17 hospitals and 33medical centers

44,983 38,130 18.0%EBITDA**

**EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost.*Exchange rate of Ch$524,61 as of December 31st ,2013.



68

100

103

105

105

128

256

330

335

360

220

540

Iquique

Las Lilas

Avansalud

UC San Carlos

UC Lira

Tabancura

Las Condes

Alemana

Santa María

Indisa

Bicentario

Davila

Chilean private hospitals by number of beds (2012)

Red Salud: Overview

493*

Red Salud hospitals

Others

ILC market share (in terms of private

hospital beds): 18,5%

Source: ILC, annual reports of the companies as filed with the SVS, except Clinica Alemana, where the information has been derived from its website; *Represents the original number of beds for this project, still not approve by the board.

222

235235



Evolution of revenues – Red Salud

Red Salud: Operating data

Admissions

Emergency room visits

Dec-12

48,035

116,214

Patient days 120,535

Dec-13

52,577

132,077

129,237

Tabancura

Avansalud

Average ocupancy rate

73.8%

67.3%

Iquique 51.8%

Bicentenario 66.0%

Average lenght of stay (days)

2.89

1.47

2.43

3.10

Dec - 13

Includes Bicentenario, Avansalud, Tabancura and Iquique hospitals

Evolution of EBITDA LTM – Clínica Bicentenario



Red Salud: Operating data

Evolution of Revenues, Net Income and EBITDA of ou r private hospitals and outpatient centers

*EBITDA calculated as Operating income minus D&A

Income Statement (Dic-12) Megasalud Avansalud Tabancura Bicentenario Iquique

Million Ch$

Revenues 75.045 25.592 28.631 27.869 6.060

Cost of Sales ( 57.525) ( 19.534) ( 21.721) ( 25.497) ( 4.411)

Gross Profit 17.520 6.058 6.910 2.372 1.648

SG&A ( 10.754) ( 3.095) ( 4.209) ( 4.801) ( 1.674)

Operating Income 6.766 2.963 2.701 ( 2.429) ( 25)

Net Income 5.050 1.196 1.682 ( 4.641) ( 54)

EBITDA(*) 9.438 4.877 3.853 ( 634) 192

EBITDA Mg. 12,6% 19,1% 13,5% -2,3% 3,2%(*) EBITDA is the Operating Result minus depreciation and amortization

Income Statement (Dic-13) Megasalud Avansalud Tabancura Bicentenario Iquique

Million Ch$

Revenues 84.320 31.565 31.949 36.204 6.499

Cost of Sales ( 65.827) ( 24.508) ( 24.279) ( 31.819) ( 4.323)

Gross Profit 18.493 7.057 7.671 4.385 2.176

SG&A ( 11.079) ( 4.055) ( 4.843) ( 4.517) ( 1.539)

Operating Income 7.414 3.002 2.828 132- 637

Net Income 5.658 1.328 1.953 ( 2.575) 440

EBITDA(*) 10.382 5.277 4.159 1.884 836

EBITDA Mg. 12,3% 16,7% 13,0% 5,2% 12,9%(*) EBITDA is the Operating Result minus depreciation and amortization



Vida Cámara

Dec – 13

64,871

(64,253)

(11,208)

(4,010)

7,198

Dec – 12

189,015

(126,930)

(16,442)

51,788

68,231

(2,785) 42,106

Var. %

(65.7%)

(49.4%)

(31.8%)

(107.7%)

(89.5%)

(101.6%)

Revenues from insurance activities

Cost of Sales

SG&A

Operating Income

Gross Margin

Net Income

• Created in 2009 due to theacquisition of 99.9% of RBS(Chile) Seguros de Vida S.A.


• On January 2012 launch thecomplementary healthinsurance business, addingmore than 15,000 beneficiariesper month

• As of September 23rd 2013,Vida Cámara was awarded,with two of seven fractions, theD&S insurance auction in Peru

*Exchange rate of Ch$524,61 as of December 31tst 2013.


6,579 6,146 7.0%Revenues from financial result



Vida Cámara: Key considerations

� Since July 2012, Vida Cámarastopped supplying the D&S insurance

� 36% premium market share in the D&S business (July 2010-June 2012)

� Complementary health insurance

� Life and catastrophic insurance

� Entrance in Peru

In average, more than 9,000 beneficiaries per month

Evolution of beneficiaries for the complementary h ealth insurance

New projects



Corp Group Vida Chile

• As of November 18th, 2013 the due diligence process finished and ILC acquired 67% of the shares of Corp Group VidaChile S.A.. The price paid for the shares and social rights was CLP $87,250 million (US$ 167.5 mm)

Key Considerations (as of December 2013)

• 14,7% Market share on annuities

• 8,1% Market share on life insurance direct premium

• 16,6% Market share on AuM

• More than 300,000 policy holders in CorpVida

Source: Asociación Chilena de Aseguradores



Financial Summary



Balance Sheet

Dec – 13

439,950

1,399,563

10,100,221

Dec – 12

467,768

1,364,869

2,012,167

Balance

Total current assets

Total non current assets

TOTAL ASSETS

330,303

797,341

7,604,138

297,631

477,875

128,820

Total current liabilities

Total non current liabilities

Total insurance liabilities

1,368,439 1,107,842TOTAL EQUITY

10,100,221 2,012,167TOTAL EQUITY & LIABILITIES

US$* Thousands

Dec – 13

180,092

674,314

US$* Thousand

Short term debt

Long term debt

854,405Total financial debt

Dec – 13

331,231

1,368,439

US$* Thousand

Cash & cash equivalent

Total equity

< 1.0 X

0.38 x

COVENANT

Net Fin. Debt / Total Equity

(*)Exchange rate of Ch$524.61 as of December 31st, 2013

8,260,708 179,530Total insurance assets

Dec– 13

180,312

Dec – 12Income Statement

Non insurance activity operating income

160,890 158,271NET INCOME

238,065 243,582

Profit attributable to non-controlling interest and

income tax expense

184,428

67,208Non insurance activity non

operating income26,360

Insurance activity operating income

(297) 51,788

Insurance activity non operating income

2,603 707

(88,937) (105,011)

Non insurance activity EBITDAE**

(**)EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat´s encaje.



85,986 84,814

15,56011,735

20,00423,599

6,236 4,744

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2012 2013

Others

Red Salud

Consalud

Habitat

Ch$ million

Financial Data (December-13)

Financial Debt

Cash Flow from main subsidiaries (Dec-13) EBITDA (non insurance business) (Dec-13)

Credit Risk

Feller Rate:AA+

Humphreys:AA+

Local credit rating

*Exchange rate of Ch$524,61 as of December 31st, 2013

(*) According to Superintendent of Health regulation. (**) According to the current dividend policy of each subsidiary as of December 2013

Financial Debt

(USD million) ILC Habitat

Vida

Cámara

Corp Group

Vida Chile S.A. C. Machalí Consalud Red Salud TOTAL

Corto Plazo 3,3 0,1 1,6 143,7 0,3 5,2 25,9 180,1

Bonds 3,3 - - 21,8 - - 2,3 27,4

Bank loans - - 1,6 122,0 0,3 5,2 18,0 147,0

Financial leasing - 0,1 - - - - 5,6 5,6

Largo Plazo 274,9 0,5 - 186,8 6,2 1,0 205,0 674,3

Bonds 106,1 - - 186,8 - - 85,8 378,6

Bank loans 168,8 - - - 6,2 1,0 36,7 212,7

Financial leasing - 0,5 - - - - 82,5 83,0

Total 278,2 0,5 1,6 330,5 6,5 6,2 230,9 854,4

Dec-13

Distributable

Net Income

(Ch$ mm)

Dividend

Policiy** %

Ownership

%

Div. to ILC

(Ch$ mm)

Habitat 56,385 90% 67.5% 34,244

Red Salud 3,794 100% 89.9% 3,411

Consalud* 9,454 100% 99.9% 9,445

Vida Cámara ( 1,461) 100% 99.9% -

CGVC 1,736 30% 67.0% -

Total 69,908 47,099



Deutsche Bank ConferenceMay-14

For more information, please contact with:

Ignacio González R. María Paz Merino Pagola

CFO Head of Investor Relations

Phone: (56 2) 2477 4606 Phone: (56 2) 2477 4673

[email protected] [email protected]

www.ilcinversiones.cl

Documents

Deutsche Bank Conferences21.q4cdn.com › 417792851 › files › doc_presentations_es › ...Source: Superintendencia de Pensiones, as of December 31st, 2013 Contributors market share