credicorp xv andean investors...

Estrictamente Privado y Confidencial

1

CREDICORP XV ANDEAN INVESTORS CONFERENCELima, PeruSeptember 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 practices

III. Closing Remarks

IV. Appendix

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3

I. ILC at a Glance


4

ILC AT A GLANCE

Dividend Yield LTM June 2017

12.7%at IPO’s price

ROE-Net Inc. LTM June 2017(1)

16.2% - US$172 m.

(1) FX: CLP$650/USD$Source: ILC, Superintendencia de Pensiones Chile, Superintendencia de Banca, Seguros y AFP Perú, Asociación de Aseguradores de Chile

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 June 2017(1)

US$63 bill.in AFP Habitat, Confuturo and

Corpseguros

Local Risk Rating

AA+

Consolidated Employees

~12,200in Chile and Peru

4


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

6


7

FOCUS ON THE FINANCIAL AND HEALTH SECTORS

2012Pre-IPO

Today

Financial Sector

96%

67.5% 99.9% 89.9% 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 with

Education

Source: ILC 7Executed in 2015-2016

Pension Funds (Chile & Peru)

Pension Funds (Chile)

Healthcare Network (Chile)

Mandatory Health Insurance (Chile)

IT Platform (Chile) School Network (Chile)

Life Insurances (Chile)

Corporate Banking (Chile)

Healthcare Network (Chile)

Mandatory Health Insurance (Chile)

Supplementary Health Insurance (Chile)

Disability & Survivorship Insurance (Chile)


8

80%

17%

4%

45%

39%

10%

5%5% 4%

AFP Habitat and Isapre Consalud reduced their impact on results from 97% in 2012 to 49% in last twelve months as of June 2017

-8% (ILC Individual and Others)

ILC: Ordinary Net Result 2012 (IPO) ILC: Ordinary Net Result LTM June 2017

GREATER DIVERSIFICATION OF RESULTS

Source: ILC

8

-1% (ILC Individual, Others and Vida Camara)

US$91.5 million

US$172.2 million


9

92 97 106 112 111

172 36

33

343

19% 18%14% 15%

50%

16%

0%

10%

20%

30%

40%

50%

60%

-

50

100

150

200

250

300

2012 2013 2014 2015 2016 LTM June 2017

Ordinary Net Result Extraordinary Net Result ROE (%)

Ordinary net result growth

(2012-2017)+14.1%

CAGR

8.7%annual

450US$ m.

Average Dividend yield (1)

(2012-2017)

Extraordinary net result

(2012-2017)~US$90 m. annually (average)

1

2

3

CAPEX

(2012-2017)4

CONSISTENT RETURN GENERATION

US$ m.

ILC: Net Result and ROE Evolution

(1) Dividend yield at IPO’s priceSource: ILC. FX: 650 CLP$ / USD$ 9

450


10

ILC: VALUE PROPOSAL

10

1.


2.


3.



11

2017: ORGANIZATIONAL STRUCTURE READY TO FACE GROWTH

19812013

2013

2015

2008

1984

2012

Demographic and Economic

Factors(exogenous)

Search for Regional

Expansion(endogenous)

Company

Financial

Financial

Financial

Health

Health

Health

Internal Improvement Opportunities(endogenous)

Sector

Future2012 - 2016

11Source: ILC


12

Consorcio & CN Life17.4%

Metlife16.4%

Penta Vida16.2%

Confuturo & Corpseguros

14.9%

Bice Vida9.3%

Others25.6%

LIFE INSURANCE INDUSTRY: DEMOGRAPHIC AND ECONOMIC POTENTIAL

Interest Rate: Programmed Withdrawal vs. Annuity Retirement Alternative Breakdown

Annuity Mkt. Share (Direct Premiums, LTM June 2017)Annuity Industry Gross Premiums (US$ m.)

US$3,882 m.

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

12

64% 63% 61%71% 71% 69%

36%37% 39%

29%29% 31%34,788

38,804 39,218 43,693

48,851 47,030

2012 2013 2014 2015 2016 LTM June2017

Annuity Programmed Withdrawal

2,922 3,044 2,820

3,752

4,296 3,882

2012 2013 2014 2015 2016 LTM June2017

3.24%

2.85%2.74%

2.39%

3.83% 3.92%

2.91%

3.26%

2012 2013 2014 2015 2016 2017

Annuity Programmed Withdrawal


13

448 580

2013 LTM June 2017ROE LTM

Inversiones Confuturo June 2017

18%

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 P/B

Annuity Direct Premiums (US$ m.)

Net Result (US$ m.)Portfolio Risk (June 2017)

+29%+21%

AuM (US$ m.)

13%

6%

% Real Estate

% Stocks

23%

3%

CONFUTURO: REFOCUSING ITS INVESTMENT STRATEGY

Source: AACh, SVS and ILC. FX: 650 CLP$ / US$ 13

7,275 8,807

2013 June 2017

Bice Vida

Consorcio

Confuturo

Corpseguros

EuroaméricaMetlife Penta Vida

Principal

SecuritySura

8.00

10.00

12.00

14.00

16.00

18.00

0% 5% 10% 15%

Leve

rage (x)

% Equity / AuM (8)

24

51

65

87

2013 2014 2015 2016 LTM June2017


14

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 2016Chilean Banking Industry ROE

Industry 2016 ROE

Banking 13.1%

Retail 12.6%

Construction & Real Estate 9.9%

Basic Materials 5.8%

Industrial 2.4%

CHILEAN BANKING INDUSTRY: PROFITABLE AND GROWING

Source: SBIF, World Bank, Bloomberg, BCS, Banco Central de Chile 14

194% 190%174%

147%134%

119% 111%

68%47%

37%5.8%

5.8% 5.5%4.0%

1.9% 2.3%1.6%

8%

17%

14%13%

11%12%

6%

2010 2011 2012 2013 2014 2015 2016

GDP Growth (real) Loans Growth (nominal)


15

1714

1311

8

Bice Scotia BBVA Security BI

5853 51 49 48

BI Security BBVA Scotia Bice

5.5

16.1

LTM June 2016 LTM June 2017

17.914.8


1,322

1,582

June 2016 June 2017

AAA

AA AAAA-

A+

AA+

Scotia BICE BBVA Security - ILC

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

Reciprocity(1) (June 2017, %)Efficiency (June 2017, %) Credit Rating (June 2017)

ROE LTM June

201711%

+20% -17%

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

Growth in loans

BANCO INTERNACIONAL: REDUCING GAPS WITHIN THE INDUSTRY

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

15

Net Income (US$ m.)

+193%


16

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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17

53.2 53.5

10.9%10.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0


EBITDA EBITDA Mg.

4.9x

5.3x

4.7x

4.8x

4.9x

5.0x

5.1x

5.2x

5.3x

5.4x

June 2016 June 2017

8.87.1

-

01

02

03

04

05

06

07

08

09

10


1,141

920

612452

370296

Net Result (US$ m.) Net Debt / EBITDAEBITDA (US$ m.)

Number of Beds

-20%

Company EBITDA Mg. 1H16 EBITDA Mg. 1H17

18.6% 16.9%

11.8% 9.6%

13.7% 9.6%

16.6% 3.8%

First-class healthcare assets across Chile

Estimated CAPEX next 3Y

~US$ 100 m.

Minority stake acquisition at 0.94x P/B

(June 2016)

Focus on efficiency and working capital

Improve synergies among the network

New corporate governance / image renewal

Red Salud

Strategy:Operational turnaround

Comparable EBITDA Margins

+7%-9 bps

Source: ILC, Clínicas de Chile AG (November 2016). FX: 650 CLP$ / USD$

RED SALUD: LOOKING FOR OPERATIONAL EXCELLENCE

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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$1,334 trillion in AuM / US$3.7 trillion inlife insurances

• 49,000 employees

• Market cap.: US$48 billion

Life insurance

Pensions

1998

1999

2006

2016

Source: Prudential

ILC – PRUDENTIAL ASSOCIATION IN AFP HABITAT

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19

Capital17.0%

Cuprum8.0%

Habitat21.2%

Modelo13.8%

Planvital11.7%

Provida28.3%

Capital19.5%

Cuprum19.8%

Habitat27.2%

Modelo4.5%

Planvital3.4%

Provida25.5%

Market Share by Contributors (June 2017)

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 (June 2017)

Source: Superintendencia de Pensiones. FX: CLP$650 per USD$

HABITAT CHILE: CONSOLIDATION IN THE HIGH-INCOME SEGMENT

19

5.2 million

US$194billion

680 725 781 842 913 980 1,046 1,098 1,130 0.17

25 48

70 84

104 145 148

Dec.2009

Dec.2010

Dec.2011

Dec.2012

Dec.2013

Dec.2014

Dec.2015

Dec.2016

June2017A

vera

ge T

axab

le In

com

e

(US

$)

Additional Taxable Income AFP Habitat Average Taxable Income IndustryRank Pension Fund Returns (L3Y, June 2017)

Habitat Capital Cuprum Modelo Planvital Provida

Fund A 1° 4° 2° 3° 6° 5°

Fund B 1° 4° 3° 2° 6° 5°

Fund C 1° 4° 2° 3° 6° 5°

Fund D 1° 3° 2° 2° 5° 4°

Fund E 1° 2° 3° 4° 5° 6°


20

Habitat2.8%

Integra39.6%

Prima31.7%

Profuturo25.9%

Habitat17.4%

Integra31.2%

Prima23.3%

Profuturo28.1%

Peruvian Labor Force Breakdown (2015)

Workers: 15.9 m.

Market Share: AuM and Affiliates (June 2017)

(1) PPPS: Peruvian Private Pension SystemSource: SUNAT, INEI, CELADE, SBS. FX: 3.25 PEN$ / USD$

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

20

AuM per Affiliate June 2017 (US$)

Investment Returns PPPS(1)

Independent35%

Dependent65%

Formal27%

Informal73%

US$44billion

6.4 million

Rank Pension Fund Returns (L3Y, June 2017)

Habitat Integra Prima Profuturo

Fund 1 1° 2° 3° 4°

Fund 2 1° 2° 4° 3°

Fund 3 1° 3° 4° 2°

1,110

8,791 9,388

6,369 6,911

Habitat Integra Prima Profuturo PPPS


21

Vida Tres4.4%

Nueva Masvida15.8%

Colmena17.6%

Consalud20.2%

Cruz Blanca20.9%

Banmédica21.0%

Metlife22.4%

Security Previsión12.4%

Euroamérica11.4%Chilena Consolidada

11.2%

Vida Cámara9.9%

Otros32.8%

ConsaludFacing an adverse scenario due to higher loss ratios and

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 Beneficiaries (June 2017) Market Share Supplemental Health Insurances by Premiums (June 2017)

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

US$593 m.3.3 m.

Vida Cámara

CONSALUD AND VIDA CÁMARA

21


22

ILC: VALUE PROPOSAL

22

1.


2.


3.



23

Net Financial Debt / Total Equity

DISCIPLINED CAPITAL MANAGEMENT

ILC’s net debtUS$280 million (1)

Consolidated net debtUS$905 million (1)

ILC’s cashUS$95 million (1)

ILC Rating RiskAA+

Dividend Policy by Subsidiary

23(1) ILC Financial data as of June 2017FX: 650 CLP$ / US$

Debt: 66% Bonds34% Banks(1)

Amortization Schedule ILC (June 2017, US$ m.)

0.38x

0.55x0.85x

0.69x

0.74x

1.0x

1.2x

Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 June 2017

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

158

6 6 6 6 6 6 6 6 6 6

40 40 40

8 8 8 8 8

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

Bank Loans ILC-C ILC-D ILC-F ILC-H

6M17Distr. Net Income

(Th. US$)

Dividend Policy (%)

Ownership (%)

Habitat 56,022 90% 40.3%

Red Salud 1,846 100% 99.9%

Consalud 7,925 100% 99.9%

Vida Cámara 4,440 100% 99.9%

Inversiones Confuturo 62,167 30% 99.9%

Banco Internacional 7,696 30% 50.6%

Total 140,096


24

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 entity, which annually elects five of the seven 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%

24

100%


25

3. Closing Remarks


26

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

26


27

4. Appendix


28

SUMMARIZED FINANCIAL STATEMENTS AND SUBSIDIARIES FIGURES

Figures as of June 2017 / FX: CLP$664.23 per USD$Inversiones Confuturo Net Debt: US$151 m./ ILC Net Debt: US$362 m. / ILC’s SG&As LTM June 2017: US$6.2 m. 28

Ba l ance S heet

Th. US$ June 2017 Dec. 2016

NON I NSURANCE ACTI V I TY ASSETS 1,414,448 1 ,403,245

Total Current Assets 390,035 401,203

Total Non Current Assets 1,024,413 1,002,042

TOTAL I NSURANCE ACTI V I TY ASSETS 9,023,893 8 ,805,848

TOTAL BANKI NG ACTI V I TY ASSETS 2,170,424 2 ,081,163

TOTAL ASSETS 12,608,765 12,290,255

NON-I NSURANCE ACTI V I TY LI AB I LI TI ES 1,110,858 1 ,064,812

Total Current Liabilities 517,023 445,661

Total Non Current Liabilities 593,836 619,150

I NSURANCE ACTI V I TY LI AB I LI TI ES 8,313,541 8 ,191,883

BANKI NG ACTI V I TY LI AB I LI TI ES 1,992,086 1 ,893,417

TOTAL LI AB I LI TI ES 11,416,485 11,150,111

1,081,966 1,025,120

Non-Controlling Interests 110,313 115,024

TOTAL EQUI TY 1,192,279 1 ,140,144

TOTAL LI AB I LI TI ES + EQUI TY 12,608,765 12,290,255

Equity Attributable to Owners of the Parent Company

Income S ta tement

Th. US$ 6M16

NON-I NSURANCE ACTI V I TY

Operating result 21,869 12,634

Non operating result 18,079 212

Profit (loss) before tax 39,948 12,846

Profit (loss) from discontinuing operations 0 342,811

Non-I nsurance activi ty p ro f i t 37,566 355,706

I NSURANCE ACTI V I TY


Non operating result 279 (15,042)


I nsurance activi ty p ro f i t 72,010 36,519

BANKI NG ACTI V I TY


Non operating result (25) 21


Bank ing activi ty p ro f i t 2 ,564 5,427

PROFI T (LOSS) FOR THE PER I OD

109,399 384,602

Pro f i t attributab le to non-contro l l ing interest 2,741 13,050

6M17

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

Individual Results (LTM June 2017, 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 262,775 850,668 329,875 80,048 523,734 643,081 69,047

EBITDA / EBITDAE N.A. N.A. N.A. N.A. 52,366 N.A. N.A.

Net Income 158,721 41,893 43,629 15,765 6,946 16,820 8,020

Assets 620,182 5,226,440 3,602,110 2,125,568 612,950 170,826 108,213

Liabilities 137,328 4,893,635 3,302,829 1,984,323 424,547 146,105 46,621

Equity 482,837 332,806 299,281 141,245 173,297 24,721 61,592

Net Financial Debt (44,811) (7,922) 67,880 48,754 277,848 (19,207) (1,171)

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


29

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

ILC PARTICIPATES IN NON-DISCRETIONARY INDUSTRIES

29


30

10.8%

8.8%

6.6%

3.9%

2.3%

10.6%

8.5%

6.3%

3.7%

2.1%

Fund A Fund B Fund C Fund D Fund E

Habitat Industry

21%

7%

5%

23%8%

36%

13%

15%

36%

17%

19%27%

3%5%

19%

20%

26%

21%

12%

14%17%

8%

28%20%

13%

15%16%

6%

30%

5

CHILEAN PENSION FUNDS REPRESENTED 69% OF GDP IN 2016

Market Players(all private)

Fee(% on gross salary,

capped at ~US$2,600)

Affiliates10.2 million

Contributors5.3 million

Pensioners1.4 million

1.27%0.41% 0.77%

1.44% 1.48% 1.45%*

AuMUS$193 Billion

Taxable Income

(Average, US$)

B

A

C

D

E

Distribution of assets in the Industry by type of fund

AHigher risk

ELower risk

2 3 41 6

Return of Funds 2017 (Real Terms)

97% correspond to dependent workers

Invested in: With a return of:

FX: CLP$650 per USD$. Source: Superintendencia de Pensiones*As of the end of 2016 AFP Provida’ s fee was 1.54% 30

1

2

34

5

6

1

2

34

5

6

1

2

3

4

5

6

1

2

3

4

5

6

US$ 1,278US$ 822 US$ 994 US$ 1,172

US$ 2,078

US$ 919


31

01%

I.11%

II.73%

III.15%

3%

40%

32%

25%

19%

31%25%

25%18%

31%

23%

28%

PERUVIAN PRIVATE PENSION FUNDS REPRESENTED 27% OF TOTAL GDP IN 2016

31

0.9%0

11.6%I.

71.5%II.

15.9%III.

0.02%

43.5%

29.0%

27.5%

Market Players(all private, in addition to a

state owned institution)

Fee*(% on income / % over AuM)

Affiliates6.3 million

Contributors2.8 million

Pensioners0.09 million

AuMUS$43.8 billion

Annual Contribution per Contributor / AuM per

Contributor(US$)

AuM Breakdown by FundUS$43.8 billion

III.Higher risk

0.Lower risk

2 3 41

Return of Funds 2016 (Real Terms)

Invested in: With a return of:

7.1% 7.5%8.5%

4.5%

6.5% 7.%

Fund I. Fund II. Fund III.

Habitat System

620930

Annual Contrib. AuM per Affiliate

1,025

8,232


1,218

8,923


944

6,596


1

2

3

4

1

2

3

4

1

2

3

4

1

2

3

4

FX: PEN 3.3 per US$. Source: Superintendencia de Banca, Seguros y AFP

0.38%1.25%

% Income % AuM

0.90% 1.20%

% Income % AuM

0.87% 1.25%

% Income % AuM

1.07%1.20%

% Income % AuM


32

US$ 1,193 US$ 1,491 US$ 1,349 US$ 1,519

US$ 367

US$ 1,461 US$ 1,365

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

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

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$650 per US$ 33

86.7% 87.5% 86.3% 84.9%43.2%

88.2% 87.9%


33

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

33

54%

46%

Public

Private


34

Disclaimer:“The information contained herein has been prepared to assist prospective investors in making their own analysis and evaluation of Inversiones La Construcción S.A. and its subsidiaries (the “Company”) and does not purport to contain all the information that a potential investor may desire. This presentation includes forward-looking statements regarding the Company’s commercial, financial and operational outlook, that could be affected for a number of different reasons, such as changes in the economy, regulation, its subsidiaries and other future conditions. Forward-looking statements involve risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied. Therefore, they are subject to change and the Company undertakes no obligation to publicly update or revise any forward looking statements to reflect events or circumstances that may arise after the date of this presentation. Prospective investors are urged to also review the main risks as defined by the Company, which are described in Note 5 of the Company´s Financial Statements.It is the sole and complete responsibility of the prospective investor to determine the use of the information provided and is therefore solely responsible for investment decisions or any other operation in the stock market made on the basis of it.”

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

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