LARRAIN VIAL XI ANDEAN CONFERENCE - s21.q4cdn.coms21.q4cdn.com/417792851/files/doc_presentations/... · LARRAIN VIAL XI ANDEAN CONFERENCE Santiago, Chile March 2017. Estrictamente

Estrictamente Privado y Confidencial

1

LARRAIN VIAL XI ANDEAN CONFERENCE

Santiago, ChileMarch 2017


2

AGENDA

I. ILC at a Glance

II. ILC: Value Proposala. Proven expertise in realizing valueb. Industries with growth potential + internal improvement opportunitiesc. Disciplined capital management and strict corporate governance practicesd. Multiple avenues for consolidation & growth

III. Closing Remarks

IV. Appendix

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3

I. ILC at a Glance


4

ILC AT A GLANCE

Dividend Yield for 2016

8.5%at IPO’s price

ROE - Net Income(1)

14.7% - US$117 m.LTM September 2016

(1)Excluding the extraordinary accounting effect related to the ILC-Prudential association in AFP Habitat for US$339 million(2) FX: CLP$650/USD$

We aim to improve the quality of life of our clients, by offering them efficient and accessible services, mainly in the financial and health sectors.

We favor the creation of value, efficiency and sustainability, guided by the values of our Controller, the Chilean Construction Chamber (CChC).

Mission:

Sectors where ILC participates

Financial & Health

AuM as of September 2016

US$56.2 bill.(2)

in AFP Habitat, Confuturo and Corpseguros

Local Risk Rating

AA+

Consolidated Employees

~12,900in Chile and Peru

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5

II. ILC: Value Proposal


6

ILC: VALUE PROPOSAL

1.

Proven expertise in realizing value

2.

Industries with growth potential+ internal improvement opportunities

3.

Disciplined capital management and strict corporate governance practices

4.

Multiple avenues for consolidation & growth

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7

FOCUS ON THE FINANCIAL AND HEALTH SECTORS

2012Pre-IPO

Today

Financial Sector

96%

67.5% 89.9% 99.9% 99.9% 32.9% 99.9%

Health Sector IT

Financial Sector

Float:~50% international investors

~50% local investors67% 33%

40.3% 99.9% 50.6% 99.9% 99.9% 99.9%

Health Sector

Partnership

Education

Source: ILC

7

Executed in 2015-2016


8

72%

2%

21%

Others 5%

53%

34%

12%

7%

AFP Habitat and Isapre Consalud reduced their impact on results from 93% in 2010 to 49% in the first nine months of 2016

Others: -7% (Vida Cámara and Consalud)

ILC: Ordinary Net Result(1) Pre-IPO (2010) ILC: Ordinary Net Result(1) 9M16

GREATER DIVERSIFICATION OF RESULTS

(1) Individual results from ILC, iConstruye, Desarrollos Educacionales, Factoring Baninter and Baninter Corredores de Seguros were not consideredSource: ILC

8


9

43

(3)

84 86 73 94 96

106 112

113

11

72

52

34 34

343

95

157

125 128 130

11,3%

-0,9%

22,4%

32,1%

19,5% 19,3% 18,4%

14,3% 14,5%

-10%

0%

10%

20%

30%

40%

50%

60%

(15)

35

85

135

185

2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM Sept 16Ordinary Net Result Extraordinary Net Result ROE (right axis)

Ordinary net result growth

(2007-2016)+8%CAGR

~6%annual

450US$ m.

Dividend yield (1)

(2012-2016)

Extraordinary net result growth

(2007-2016)+17%CAGR

1

2

3

CAPEX

(2012-2016)4

CONSISTENT RETURN GENERATION

US$ m.

450

ILC: Net Result and ROE(1) Evolution

Dividend yield at IPO’s priceROE: Net result / Equity attributable to owners of the parent company (each end of period)Source: ILC. FX: 650 CLP$ / USD$

9

459

46

50.3%


10

ILC: VALUE PROPOSAL

1.


2.


3.


4.


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11

LIFE INSURANCE INDUSTRY: DEMOGRAPHIC AND ECONOMIC POTENTIAL

19,2%19,0%

16,3%

15,6%13,0%

8,6%

8,4%

Interest Rate: Programmed Withdrawals vs. Annuities

Others

Retirement Alternative Breakdown

Annuity Mkt. Share (Direct Premiums, LTM Sept 2016)Annuity Industry Gross Premiums (US$ m.)

US$4,297 m.

Source: AACh, SVS, Superintendencia Pensiones. FX: 650 CLP$ / USD$ 11

2.379

2.874 2.9942.773

3.689

4.297

2011 2012 2013 2014 2015 LTMSeptember

2016

53%64% 63% 61%

71%73%

47% 36%37% 39%

29%

27%

35.246 34.78838.804 39.218

43.693

54.051

2011 2012 2013 2014 2015 2016

Annuities Programmed Withdrawal

3,83% 3,82%

3,12% 3,26%

3,23%

2,85% 2,72%

2,43%

2012 2013 2014 2015 2016 2017

Programmed Withdrawal Annuities


12

ROE LTM (3)

Sept 201612%

6.360 8.489

2013 September 2016

392

698

2013 LTM September 2016

Acquisition:November 2013

Acquisition price

US$ 134 m.Participation acquired

67.0%Multiple acquisition (P/B)

0.83x

Strategy:Financial turnaround

New asset allocationLower leverage derived from

new investment strategyMinority stake acquisition at

0.84x(1) P/B

Annuity Direct Premiums (US$ m.)

Net Result (US$ m.)Portfolio Risk September 2016

+78% +33%

AuM (US$ m.)

13%

6%

% Real Estate(2)

% Stocks(2)

23%

4%

CONFUTURO: REFOCUSING ITS INVESTMENT STRATEGY AND CAPITAL STRUCTURE

(1) Includes: purchase of Confuturo’ s shares to Mass Mutual, subsequent capital increases and the acquisition of Inversiones Confuturo’ s remaining stake to CorpGroup(2) Considers the Espacio Urbano transaction (shopping centers) / % stocks reflects all investments at fair value(3) ROE: Net result / Average Equity attributable to owners of the parent companySource: AACh, SVS and ILC. FX: 650 CLP$ / US$

12

(7,9)

24,0

50,6

66,1

2013 2014 2015 LTMSeptember

2016

Principal

Metlife

Corpseguros

Confuturo before.∆+K

Confuturo 2013

Bice Vida

Security

Consorcio

Penta

09

11

13

15

17

00% 02% 04% 06% 08% 10% 12% 14%

Leve

rage (x

)

Investments in Stocks / AuM

Confuturo 3Q16


13

18,6%17,5%

14,7% 14,8%

17,2%

14,2%

11,0%

2010 2011 2012 2013 2014 2015 2016

Internal Credit Provided by Banking Sector 2015 (% GDP)GDP vs Bank Loans Growth (Chile)

IGPA Comparative ROE 2015Chilean Banking Industry ROE

Industry 2015 ROE

Banking 17.1%

Construction & Real Estate 12.7%

Utilities 10.9%

Retail 9.4%

Basic Materials 4.8%

Industrial -2.6%

CHILEAN BANKING INDUSTRY: PROFITABLE AND GROWING

Source: SBIF, World Bank, Bloomberg, BCS, Banco Central de Chile

13

5,8%5,8% 5,5%

4,0%

1,9% 2,1%

7,7%

17,3%

14,3%13,3%

10,7%12,2%

2010 2011 2012 2013 2014 2015

GDP Growth (real) Loans Growth (nominal)

194% 190%174%

147%134%

119% 111%

68%47%

37%


14

24,6 23,7 18,8

15,7

7,4

BBVA BICE Scotia Security

64,5 64,5 61,555,9

50,7

Security BBVA Scotia BICE

26.8

14.2

2015 2016

1.285

1.415

2015 2016

AAAAA AA

AA-A+

AA+

Scotia BICE BBVA Security - ILC

Loans (US$ m.) Risk Expenses (US$ m.)

Reciprocity(1) (Dec 2016, %)Efficiency (Dec 2016, %) Credit Rating (Dec 2016)

ROE 201610%

+10.1% -46.8%

Acquisition:November 2015

Acquisition price

US$ 100 m.Participation acquired

50.6%Multiple acquisition (P/B)

1.29x

Strategy:Turnaround

Focus on small and medium size companies

Risk and efficiency management

New board and management

BANCO INTERNACIONAL: FROM MACRO TO MICRO

(1) Time deposits / Total liabilitiesSource: SBIF, Banco Internacional. FX: 650 CLP$ / USD$

14

Net Income (US$ m.)

0,1

14,4

2015 2016


15

40%29% 21%

56%64%

69%

4% 7% 10%

1960 1992 2014

0-14 15-64 65+

Demographic Evolution (Population by Age)GDP vs. Health Expenditure 2015 (PPA, per Capita)

Beds (Every 1,000 Habitants)Physicians (Every 1,000 Habitants)

3,8

3,3

2,62,2

1,9 1,8

4,8

3,0 2,9

2,3 2.21,6

Australia

Chile

Germany

Japan

Mexico

Spain

Switzerland

Turkey

OECD

USA

0

2.500

5.000

7.500

10.000

10.000 20.000 30.000 40.000 50.000 60.000 70.000

2 X

Per Capita GDP PPA (US$/hab.)

Per

Cap

ita H

ealth

Exp

end

iture

PP

A

(US

$/h

ab

.)

Source: OECD Health Statistics 2015, Health at a Glance 2015, World Bank, INE

CHILEAN HEALTHCARE INDUSTRY: LACK IN SUPPLY FOR GROWING DEMAND

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16

10%11%

05%

06%

07%

08%

09%

10%

11%

12%

-

10,00

20,00

30,00

40,00

50,00

60,00

70,00

LTM Sept 2015 LTM Sept 2016

EBITDA Mg. EBITDA

37.58.4

2,3

12,2

-

2,0

4,0

6,0

8,0

10,0

12,0

14,0


EBITDA Margin LTM Sept 2016

11.4%

7,7x

4,5x

0,0x

1,0x

2,0x

3,0x

4,0x

5,0x

6,0x

7,0x

8,0x

9,0x


1.133

906

612

440 350 340

Red Salud Net Result (US$ m.) Net Debt / EBITDARed Salud EBITDA (US$ m.)

Number of Beds

+426%

Company EBITDA Mg. 2015

18.5%

16.0%

15.5%

9.7%

First-class healthcare assets across Chile

CAPEX L5Y

US$ 300 m.

Minority stake acquisition at 0.94x P/B

(June 2016)

Focus on efficiency and working capital

Improve synergies among the network

New management / corporate image renewal

Red Salud

Strategy:Operational turnaround

Comparable EBITDA Margins

-41.6%

+100 bps

(1) Considers Clínicas Dávila and Santa María(2) Number of beds as of September 30th, 2016. Considers Clínicas Bicentenario, Avansalud, Tabancura, Iquique, Elqui in La Serena, Integral in Rancagua, Mayor in Temuco and Magallanes in Punta ArenasSource: ILC, Clínicas de Chile AG (June 2015). FX: 650 CLP$ / USD$

RED SALUD: AFTER EXPANSION, FOCUS ON OPERATIONS

(1)

(2)

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• Prudential’s presence in Latam

• In March 2016 ILC associated with Prudential in AFP Habitat, in order to expand their footprint in the Latampension industry

• Prudential at a glance:

• Founded in 1875

• Presence in more than 40 countries

• Products:

• Life insurances• Annuities• Retirement products• Mutual funds• Investment management

• US$1,268 trillion in AuM / US$3.5 trillion inlife insurances

• 49,000 employees

• Market cap.: US$40 billion

Life insurance

Pensions

1997

1998

2006

2016

Source: Prudential

ILC – PRUDENTIAL ASSOCIATION IN AFP HABITAT

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18

27%

26%

3%

20%

3%

20%

Market Share by Contributors (December 2016)

Average Taxable Income in Chile (US$)

• AFP Habitat has a strong presence and recognition in the Chilean pension industry:

Investment Returns (Chilean Pesos)

Market Share by AuM (December 2016)

Source: Superintendencia de Pensiones. FX: CLP$661.37 per USD$

HABITAT CHILE: CONSOLIDATION IN THE HIGH-INCOME SEGMENT

18

5.3 million

US$179billion

22%

30%

10%

17%

13%

8%

Habitat Capital Cuprum Modelo Planvital Provida

Fund A -0.22% -1.10% -0.81% 0.26% -1.6% -1.6%

Fund B 1.68% 0.94% 1.12% 2.14% 0.0% 0.4%

Fund C 2.48% 1.63% 1.95% 2.76% 1.2% 1.0%

Fund D 3.49% 2.69% 2.82% 3.76% 2.3% 1.7%

Fund E 4.32% 4.23% 3.95% 4.43% 3.6% 2.8%

Rea l Annua l i zed Returns (Jan. 2016-Dec. 2016 )

1 2 3 4 5 6 500

700

900

1.100

1.300

2008 2009 2010 2011 2012 2013 2014 2015 2016

Ave

rage T

axa

ble

Incom

e (U

S$)

Additional Taxable Income AFP Habitat Average Taxable Income Industry


19

2%

40%

32%

26%

16%

32%

23%

29%

Peruvian Labor Force Breakdown (2015)

Workers: 15.8 m.

Market Share: AuM and Affiliates (December 2016)

(1) PPPS: Peruvian Private Pension SystemSource: SUNAT, INEI, CELADE, SBS. FX: 3.35 PEN$ / USD$

PERUVIAN PENSION INDUSTRY: FAVORABLE SCENARIO DRIVEN BY DEMOGRAPHY AND LOW LABOR FORMALITY

36%

64%

Independent Dependent

27%

73%

Formal Informal

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AuM: US$ 40,702 m. Affiliates: 6.3 m.

AuM per Affiliate December 2016 (US$)

Investment Returns PPPS(1) (Peruvian Soles)

Real Annualized Returns (Jan. 2016-Jan. 2017)

Habitat Integra Prima Profuturo

Fund 1 7.08% 4.54% 5.23% 3.2%

Fund 2 7.53% 6.87% 6.73% 5.7%

Fund 3 8.52% 7.3% 6.6% 6.8%

1 2 3 4

916

8.109 8.790

5.879 6.498

Habitat Integra Prima Profuturo PPPS


20

21%

20%20%

16%

17% 4%1%

ConsaludAdverse regulatory scenario

due to judicializationsCommercial know-how

Currently implementing efficiency improvements

#5 largest company in supplemental health insurances in Chile

Experience in collective contracts

New CEO and commercial turnaround

Market Share Isapres by Contributors (November 2016) Market Share Supplemental Health Insurances by Premiums (LTM September 2016)

Source: ILC, AACh, Superintendencia Salud. FX: 650 CLP$ / US$

US$706 m.1.9 m.

Vida Cámara

CONSALUD AND VIDA CÁMARA: CURRENT OPPORTUNITY

20

23%

11%

9%8%8%

7%

34%

Others


21

ILC: VALUE PROPOSAL

1.


2.


3.


4.


21


22

Net Financial Debt / Total Equity (September 2016)

DISCIPLINED CAPITAL MANAGEMENT

ILC’s debtUS$242 million (1)

Consolidated net debtUS$812 million (1)

ILC’s cashUS$130 million (1)

ILC Rating RiskAA+

Dividend Policy by Subsidiary (9M16)

Distributable Income(US$ million)

Dividend Policy(%)

ILC’s stake in subsidiary (%)

Habitat 82 90% 40.3%

Red Salud 10 100% 99.9%

Consalud (FEFI) 1.5 100% 99.9%

Vida Cámara 0 100% 99.9%

Inv. Confuturo 36 30% 99.9%

Banco Internacional 10 30% 50.6%

Total 129

22

0.38x

0.55x

0.85x 0.71x

1.00x

1.00x

2013 2014 2015 sept-16

NFD/Equity Cov. D,F & H-Series Cov. C-Series

(1) ILC Financial data as of September 2016FX: 650 CLP$ / US$

Debt: 60% Banks40% Bonds (1)

Amortization Schedule ILC (December 2016, US$ m.)

49,0

3,9 3,9 3,9 3,9 3,9 3,9 3,9 3,9 3,9 3,9

26 26,2 26,2

5,3 5,3 5,3 5,3 5,3

Bank Loans ILC-C ILC-D ILC-F ILC-H Liquidity (If: Stress Scenario)

Stress Scenario: Cash + Subsidiaries Dividends – ILC Dividends @ 30% = ~US$120 m.


23

STRICT CORPORATE GOVERNANCE STANDARDS

• Each of ILC’s subsidiaries has an independent Board of Directors and Management, who maximize the return of its company

67.0%

16.1%International Investors

Subsidiary’s Board of Directors

Subsidiary’s Management

• The Company is controlled by the Chilean Construction Chamber, a non-profit social entity, which annually elects 6 of the 7 directors of ILC during its Shareholders’ Meeting

Directors’ Committee

Investment Committee

ILC’s Board of Directors

ILC’s Management

ILC elects Board

Members

• ILC has a Committee of Directors, responsible for reviewing financial information and auditor’s reports, related parties transactions, remuneration systems, internal auditing procedures, among others

• ILC has also an Investment Committee responsible for reviewing financial decisions undertaken by ILC

• Other initiatives to enhance ILC’s Corporate Governance: Corporate Governance Manual, Ethic Code, Crime Prevention Model, Whistle Blows Channel, Comptroller, Management Control Department, among others

• The Chairman is elected for one year, renewable for a second period

Local Investors 16.9%

23

100%


24

ILC: VALUE PROPOSAL

1.


2.


3.


4.


24


25

BASED ON 2015-2016’S FOCUSES, ILC HAS SEVERAL OPPORTUNITIES:

AFP Habitat: Inversiones Confuturo:

Consolidate its association with Prudential

Strengthen its regional footprint in Latam

Maintain its leadership in the annuity industry

Further improve returns on investments, maintaining an adequate leverage

Banco Internacional:

Improve operational and administrative efficiency

Focus in medium and small size companies

Consolidate its new Management Team

Consalud:

Further improve efficiencies in costs and SG&A

Continue developing innovative complementary products

Vida Camara:

Consolidate in Supplemental Health Insurances

Red Salud:

Improve operational efficiency andsynergies between the network

Consolidate its new Management Team

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3. Closing Remarks


27

INVESTMENT HIGHLIGHTS

One of the largest Asset Managers in Latam

Consolidated controlling shareholder

Solid and stable credit risk rating

Proven access to capital markets

Demonstrated track-record in non-

discretionary industries

Attractive and consistent dividend

yield

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4. Appendix


29

SUMMARIZED FINANCIAL STATEMENTS AND SUBSIDIARIES FIGURES

Figures as of September 2016 / FX: CLP$650 per USD$ILC Net Debt: US$109,382 Th. Inversiones Confuturo Net Debt: US$164,588 Th. 29

Balance Sheet

Th. US$ December 2015

NON I NSURANCE ACTI V I TY ASSETS 1,411,559 1 ,741,910

Total Current Assets 388,403 400,092

Total non current assets 1,023,157 1,341,819

TOTAL I NSURANCE ACTI V I TY ASSETS 8,942,435 8 ,293,032

TOTAL BANKI NG ACTI V I TY ASSETS 2,137,826 1 ,865,271

TOTAL ASSETS 12,491,820 11,900,213

NON-I NSURANCE ACTI V I TY LI AB I LI TI ES 1,073,383 1 ,295,984

Total current liabilities 487,966 731,330

Total non current liabilities 585,418 564,654

I NSURANCE ACTI V I TY LI AB I LI TI ES 8,322,264 7 ,717,341

BANKI NG ACTI V I TY LI AB I LI TI ES 1,945,585 1 ,677,935

TOTAL LI AB I LI TI ES 11,341,232 10,691,261

1,032,107 780,385

Non-controlling interests 118,481 428,568

TOTAL EQUI TY 1,150,588 1 ,208,953

Equity attributable to owners of the parent company

September 2016

I ncome S tatement

Th. US$ September 2015

NON-I NSURANCE ACTI V I TY

Operating result 20,669 22,349

Non operating result 8,991 (26,523)

Profit (loss) before tax 29,660 (4,174)

Profit (loss) from discontinuing operations 352,561 91,886

Non-I nsurance activi ty p ro f i t 380,879 84,240

I NSURANCE ACTI V I TY 0 0

Operating result 63,754 20,046

Non operating result (19,267) 11,981

Profit (loss) before tax 44,487 32,027

I nsurance activi ty p ro f i t 43,136 26,283

BANKI NG ACTI V I TY 0 0

Operating result 9,349 -

Non operating result 278 -

Profit (loss) before tax 9,627 -

Bank ing activi ty p ro f i t 9 ,422 -

PROFI T (LOSS) FOR THE PER I OD 433,437 110,523

416,826 72,385

Pro f i t attributab le to non-contro l l ing interest 16,611 38,138

Pro f i t attributab le to owners o f the parent company

September 2016

Individual Results (LTM Sept 2016, Th. US$)

AFP Habitat Confuturo Corpseguros Banco Internacional Red Salud Consalud Vida Camara

Industry Pension Funds Life Insurance Life Insurance Bank Healthcare ProviderMandatory health

insuranceVoluntary health

insurance

Revenues 252,151 585,895 191,745 89,687 511,264 600,772 169,823

EBITDA / EBITDAE 156,636 64,706 10,028

Net Income 107,288 21,419 45,032 10,288 12,193 5,282 (1,343)

Assets 595,754 5,084,742 3,685,217 2,081,688 615,430 149,320 196,077

Liabilities 135,589 4,771,965 3,409,631 1,933,478 413,618 138,314 140,668

Equity 460,163 312,777 275,586 148,209 201,812 11,005 55,409

Financial Debt 0 83,017 188,877 223,969 280,730 5,450 3,319

% ownership ILC 40.3% 99.9% 99.9% 50.6% 99.9% 99.9% 99.9%


30

Voluntary Savings

Pension Funds Pensions Health Insurance Healthcare Providers

GR

OS

S S

ALA

RY

10%Mandatory contribution:Fee:1.27% of gross salary

7%

Voluntary additional contribution

0% -40% Taxes

NE

T S

ALA

RY

Voluntary contribution

PE

NS

ION Programmed withdrawal

Annuity

Mandatory contribution

2°

= market share position

2°

2°

6°

2°

2°

ILC PARTICIPATES IN NON-DISCRETIONARY INDUSTRIES, MAINTAINING STRONG COMPETITIVE POSITIONS

30


31

21.1%

6.7%

5.4%

22.1%7.9%

36.8%

1

2

3

45

6

5

26.2%

3.0%

2.1%

20.0%21.3%

27.4%1

45

6

23

22.1%

7.6%

12.5%

18.2%

8.8%

30.8% 1

2

3

4

5

6

20.6%

7.9%

14.9%

17.6%

6.5%

32.6%

2

3

45

6

IN 2015 CHILEAN PENSION FUNDS REPRESENTED 71% OF TOTAL GDP

Market Players(100% private)

Fee*(% on gross salary,

capped at US$2,642)

Affiliates10 Million

Contributors5.6 Million

Pensioners1.3 Million

1.27%0.47% 0.77% 1.44% 1.48% 1.54%

AuMUS$154 Billion

Taxable Income

(Average, US$)

US$ 888 US$662 US$809 US$797US$ 1,593

US$642

15.3%

16.1%

37.0%

16.6%

15.0%

B

A

C

D

E

Distribution of assets in the Industry by type of fund

AHigher risk

ELower risk

2 3 41 6

1

Return of funds in the last 12 months (real terms)

97.2% correspond to dependent workers.

Invested in:

With a return of:

(*) Planvital reduced its fee afterwards to 0.41% and Provida to 1.45%FX: CLP$710.16 per US$. Source: Superintendencia de Pensiones

4.03%

2.88% 2.75%2.40%

0.84%

3.79%

.2,49%2.16%

2.02%

0.70%

A B C D E

HABITAT

INDUSTRIANDUSTRY

31

1


32

IN 2015 PERUVIAN PRIVATE PENSION FUNDS REPRESENTED 19% OF TOTAL GDP

13,3%

69,6%

17,1%

12,9%

34,5%

26,1%

26,5%

11,3%

33,8%

24,4%

30,5%

Market Players(100% private)

Fee(% on income / % over AuM)

Affiliates6.0 Million

Contributors2.6 Million

Pensioners0.09 Million

AuMUS$36.5 Billion

Annual Contribution per Contributor / AuM per

Contributor(US$)

D

Distribution of assets by type of fund

III.Higher risk

I.Lower risk

2 3 41

Return of funds in the last 12 months (real terms)

Invested in:With a return of:

FX: PEN 3.4 per US$. Source: Superintendencia de Pensiones

0,38%1,25%

% Income % AuM

1,23%1,20%

% Income % AuM

1,19%1,25%

% Income % AuM

1,46% 1,20%

% Income % AuM

624 1.332

Annual Contr. AuM per Contr.

1.008

17.699


1.236

18.488


924

15.123


1

2

3

4

1

2

3

4

43,4%

29,0%

27,6%

2

3

4

1,2%

40,4%

31,7%

26,7%

1

2

3

4I.

II.

III.

N.A.

7,43%

N.A.

5,59% 5,66%

2,41%

Fund I. Fund II. Fund III.

Habitat Industry

32


33

97% OF CHILEANS ARE COVERED BY HEALTH INSURANCES, OF WHICH 75% IS MANAGED BY THE PUBLIC SECTOR (FONASA)

20,7%

15,9%

20,9%

4.3%

0.6%

16,8%

20,7%

Banmédica

Cruz Blanca

Masvida

Vida Tres

Optima

Source: Superintendencia de Salud, statistics 2014Dimensionamiento del Sector de Salud Privado en Chile - 2014

Supporter

Insurer

B

A

C

D

E

Isapre Fonasa OthersTotal Beneficiaries

13.5 MTotal Beneficiaries

3.3 M

Consalud

Colmena

Total Beneficiaries1.1 M

Market Players(Private and open)

Market share at the level of beneficiaries to open Isapres

Average Contribution(Annual, US$)

Loss Ratio

*

Provider Private sector, according to chosen plans with Isapres

Public sector

A - B

Public sector and some private providers

C - D

84.2% 86.9% 84.9% 85.7% 56.6% 89.2% 87.9%

$ 1,696 $ 2,454 $ 2,121 $ 2,960$ 570

$ 1,869 $ 2,007

Armed Forces

Chilean Army

Chilean Navy

Chilean Air Force

Chilean Police

Private sector, according to chosen plans with Isapres

Government(7% on taxable salary, capped at aprox US$3,000; with an average contribution of 10% in the case of Isapres)

FX: CLP$606.75 per US$* In November 2014 Ferrosalud changed its name into Óptima 33


34

THE PRIVATE HEALTHCARE SYSTEM PLAYS AN IMPORTANT ROLE TO MEET CHILEAN DEMAND FOR HEALTH

30%

70%

Public

48%

52%

Public

66%

18%

2%4%

10%

53.7%

22.7%

3.4%

11.5%

8.6%Geriatric and Phys. Clinics

Source: Dimensionamiento del Sector de Salud Privado en Chile – 2014Health at a Glance 2015

Private

Total Health Expenditure8.8% of GDP

Hospitals and Clinics~ 350

Public Hospitals

Private Clinics

Mutuals

Others

Public Hospitals

Private Clinics

Mutuals

Geriatric and Phys. Clinics

Others

Beds ~ 38 thousand

Private

Doctors~ 30 thousand

Red Salud: 858 beds

Red Salud: 11 private clinics

Geographic Distribution of Doctors in Chile

North2,418 doctors83.7 habitants by doctor

Center - North21,899 doctors47.1 habitants by doctor

Center - South4,415 doctors75.7 habitants by doctor

South1,264 doctors85.1 habitants by doctor

Private

Dentists~ 16 thousand

54%

46%

Public

Private

Nurses~99 thousand

34


35

Disclaimer:This document provides information about ILC Inversiones S.A. In any case this constitutes a comprehensive analysis of the financial, operational and sales situation of the Company, so to evaluate whether to purchase or sell securities of the Company, the investor must conduct its own independent analysis.In compliance with the applicable rules, ILC Inversiones S.A. publishes this document in its web site (www.ilcinversiones.cl) and submits to the Superintendencia de Valores y Seguros, the financial statements of the company and its corresponding notes, which are available for consultation and review.

Contact Information:Trinidad Valdés / IR Department / +56 2 2477 4673 / [email protected] / www.ilcinversiones.cl Camila Tagle / IR Department / +56 2 2477 4680 / [email protected] / www.ilcinversiones.cl

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