Estrictamente Privado y Confidencial
1Privado y Confidencial
January, 2013
Santander Conference
Estrictamente Privado y Confidencial
Disclaimer
This presentation may include market outlooks and forward-looking statements, which are based on
the beliefs and assumptions of ILC´s management and on information currently available to the
Company. They involve risks, uncertainties and assumptions because they relate to future events and
therefore depend on circumstances that may or may not occur in the future. Investors should
understand that general economic conditions, industry conditions and other operating factors could
also affect the future results of ILC and could cause results to differ materially from those expressed in
2Privado y ConfidencialILC Page 2
also affect the future results of ILC and could cause results to differ materially from those expressed in
such forward-looking statements.
This presentation contains certain performance measures that have been adjusted with respect to
IFRS definitions.
Estrictamente Privado y Confidencial
ILC’s history: Key milestones
2012
20102011
20032004
20082009
� RSA increases stake in SVLC to 51%
� Acquisition of RSA stake in SVLC and subsequent sale to Bicecorp
� Acquisition of Citigroup’s stake in AFP Habitat and subsequent sale of 14% in the stock exchange
� Second D&S insurance auction
� Vida Cámara
3Privado y ConfidencialILC Page 3
Source: ILC
19992000
2001
1980
2004
1984
1989
19961997
19851981
� CChC creates ILC
� Association with Citigroup and RSA to control AFP Habitat and SVLC, respectively
� First D&Sinsurance auction
� Corporate bond issuance
SVLC (life insurance)
� Vida Cámaraexpands its product offerings to supplemental health and voluntary life insurance
� ILC placed the largest IPO in Chile (US$ 468 million)
� Habitat was awarded in the first auction in Peru
Estrictamente Privado y Confidencial
IPO
� On July 20 th we placed our IPO, the largest in the Chilean history
� The IPO totalized US$ 468 million
� Price per share at IPO: $7,061 (US$ 14.5)
New ownership structure (Sep-12)
Mutual Funds & Other institutional 10.7%
CChC 67.0%
Internationals 11.1%
Stockbrokers 11.2%
0
2
4
6
8
10
12
14
Daily average trading:
US$ (million)
US$ 4.02 million (Since July 23rd )
US$ 2.98 million (Since Ago 1st )
4Privado y ConfidencialILC Page 4
14.5)
Evolution of the stock price
34.2% performance difference as of December 28th, 2012
Number of shares: 100,000,000.-0
jul-12 ago-12 sep-12 oct-12 nov-12 dic-12
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
19
-07
-20
12
26
-07
-20
12
02
-08
-20
12
09
-08
-20
12
16
-08
-20
12
23
-08
-20
12
30
-08
-20
12
06
-09
-20
12
13
-09
-20
12
20
-09
-20
12
27
-09
-20
12
04
-10
-20
12
11
-10
-20
12
18
-10
-20
12
25
-10
-20
12
01
-11
-20
12
08
-11
-20
12
15
-11
-20
12
22
-11
-20
12
29
-11
-20
12
06
-12
-20
12
13
-12
-20
12
20
-12
-20
12
27
-12
-20
12
IPSA ILC
32.1%
-2.1%
Estrictamente Privado y Confidencial
RETAIL
IPO demand
TOTAL DEMAND
US$ 755 million
US$ 2,236 million
34%
100%
INTERNATIONAL
COMPETITIVE DEMAND
US$ 401 million
US$ 1,144 million
35%
100%
5Privado y ConfidencialILC Page 5
INTERNATIONAL
NIMS
LOCAL INSTITUTIONAL
ILC RELATED
US$ 487 million
US$ 364 million
US$ 362 million
US$ 268 million
22%
16%
16%
12%
RETAIL
LOCAL INSTITUTIONAL
NIMS
ILC RELATED
US$ 315 million
US$ 207million
US$ 192 million
US$ 29 million
28%
18%
17%
3%
Estrictamente Privado y Confidencial
We are a leading provider of retirement, insurance and private healthcare services in Chile through a group of best-in-class businesses
Company overview
For September 30 th, 2012
� Pension funds administration (AFP)Retirement
Sector US$193 mm
Revenues
US$ 116 mm
Net Income
67.5%
Ownership
6Privado y ConfidencialILC Page 6
Note: Amounts stated in U.S. dollars have been translated at the exchange rate of CLP 470.48 per USD, which was the official rate certified by the Central Bank for September 28th, 2012
� Health insurance institution (ISAPRE)
� Hospital healthcare services
� Outpatient healthcare services
� Supplemental health and voluntary life
insurance
Healthcare and Life
Insurance Sector
� Network of nine private schools and one
subsidized private school
� IT and outsourcing services
Other Businesses
and Real Estate
US$ 198 mm US$ 46 mm 99.9%
US$ 432 mm
US$ 254 mm
US$ 18 mm
US$ 5 mm
99.9%
89.9%
US$ 25 mm US$ 1.4 mm
99.9%
32.9%
Estrictamente Privado y Confidencial
Attractive demographics and solid macroeconomic fundamentals
Resilient population and income growth
1,1%
1,0%
0,3%
Chile
U.S.
Western
Europe
Japan (0,1%)
Strong real GDP growth
4,1%
3,6%
5,7%
4,1%
1,6%
4,5%
4,0%
5,9%
4,5%
2,7%2,4%
CAGR 2000-2010 CAGR 2011-2015EPopulation (2011-2015E CAGR)
5,6%
2,1%
1,3%
0,3%
Real Disposable Income (2011-2015E CAGR)
7Privado y ConfidencialILC Page 7
Japan (0,1%)
GDP per capita 2011 (USD thousands)
12.9 5.6 7.0 48.1 31.5
Gross debt / GDP 2011
65% 22% 36% 100% 82%
Source: IMF and S&P
11%
14.0
Chile has the highest GDP per capita among its peers in Latin America
1,2%
Chile Brazil Peru Colombia U.S. E.U.
Credit Rating (S&P)
BBB BBB BBB- AA+AA-
0,3%
(5,0)%
0,0%
5,0%
10,0%
15,0%
20,0%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Salary base (real) GDP (real)
ILC’s industries have benefited from Chile’s sustained economic growth…
Source: SAFP and Central Bank; Note: Salary base = number of AFP contributors x average salary. Growth calculated based on the average salary base for the year
Salary base and GDP growth (%, real terms)
AVG: 6%
AVG: 5%
Source: U.S. Census Bureau, IMF, Euromonitor; Western Europe excludes Cyprus, Luxemburg and Malta
Estrictamente Privado y Confidencial
Revenues come from…
$1.27%
Commission fee
7%
Additional health contribution
Mandatory
Pension Fund Health insurance Healthcare
10%
Voluntary savings
8Privado y ConfidencialILC Page 8
Gross Salary
Net Salary
Taxes: Range 0% - 40%
Supplemental health insurance
Voluntary
Habitat average: Ch$ 572.278 (US$ 1,196)Chile average: Ch$ 547.585 (US$ 1,144)
Gross Salary
Source: Superintendencia AFP, as of Aug-12; exchange rate $478.5
Estrictamente Privado y Confidencial
Business Overview 2
9Privado y Confidencial
Estrictamente Privado y Confidencial
Habitat
� Revenues increased 6.2% due to higher number of contributors and salaries increased of Habitat contributors
� SG&A increased 5.8%
� The “encaje” result increased 229.5%
Income Statement (US$ Th.)
Revenues
Cost of sales
Sep – 12
192,916
-
SG&A (68,491)
Operating Income 124,432
Gross Profit 192,916
Sep – 11
181,669
-
(64,722)
117,241
181,669
Var. %
6.2%
-
5.8%
6.1%
6.2%
Gain (loss) of the encaje 16,915 (13,061) 229.5%
10Privado y ConfidencialILC Page 10
increased 229.5% compared to the same period of the last year
EBITDAE* 140,850 129,612
Net Income 115,992 89,793
* EBITDAE calculated as profit before tax minus depreciation, finance cost, other non operational cost and financial income due to Habitat´s encaje
8.7%
29.2%
N° account holders
N° contributors
Sep - 12
2,154,399
1,237,602
Assets under management (MM Ch$) 19,318,525
Contributors / Account holders 57.4%
Market Share
23.4%
24.4%
25.8%
Sep - 11
2.172.402
1.227.041
17,299,586
56.5%
Estrictamente Privado y Confidencial
Habitat: Key considerations
� Salary base increase
� Voluntary savings products
� Incorporation of independent workers to the system
� Capture of transfers from competitors
Ample growth opportunities
Total AUM = US$159 bnSource: Superintendencia de Pensiones, as of September 30, 2012
Habitat
25.8%
Capital
21.7%
Provida
28.5%
Modelo
0.5%
Cuprum
20.7%
Planvital
2.8%
11Privado y ConfidencialILC Page 11
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
Source: Superintendencia de Pensiones, as of September 30, 2012
Contributors market share (as of September 2012)
Source: Superintedencia de Pensiones1 Contributors / affiliates
Contribution rate1 51.1% 57.4% 55.2% 75.6% 51.7% 45.8%
1.752.746
1.237.602
1.039.017
473.885379.715
180.478
0
200.000
400.000
600.000
800.000
1.000.000
1.200.000
1.400.000
1.600.000
1.800.000
2.000.000
PROVIDA HABITAT CAPITAL CUPRUM MODELO PLANVITAL
Estrictamente Privado y Confidencial
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
� 700,000 new beneficiaries expected in two years
Ample growth opportunities
Total AUM = US$37 bnSource: SBS as of November 30, 2012
Horizonte
23.6%
Integra
29.9%
Prima
31.5%
Profuturo
15.0%
12Privado y ConfidencialILC Page 12
Mandatory mix fee rate after the first auction (%)
Source: SBS as of November 30, 2012
Account holders market share (as of November 2012)
Prima
1,55%
Over the contribution
Integra
Over the AUM
1,51%
Horizonte
1,49%Profuturo
1,65%
PROMEDIO
0,47%Habitat
1,33%
1,20%
1,90%
1,20%
1,40%
1,25%
1,39%
Source: Superintendencia de Banca, Seguros y AFP del Perú
1,422,690
1,355,011
1,319,174
1,152,841
1.000.000
1.050.000
1.100.000
1.150.000
1.200.000
1.250.000
1.300.000
1.350.000
1.400.000
1.450.000
Horizonte Integra Prima Profuturo
Source: SBS as of November 30, 2012
Estrictamente Privado y Confidencial
Operating expenses & % fee income (Sep-12) Net Income (Ch$ mm)
Habitat: Key considerations
Based on actual figures
Adjusted to Habitat’s 1.27% fee rate
22,635 26,561 48,615 55,974 63,500 48,391 46,614 -
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
15,628
(21,832)
27,089 19,504
(1,846)
(6,145)7,958
CAGR ex-encaje (‘07-’11)29,4%
200
250
300
Fee
Inco
me
(US
$ m
illio
n)
13Privado y ConfidencialILC Page 13
Fee income (US$ million) & Expenses % (Sep – 2012)
Current mandatory fee (Sep – 2012)
Habitat
1.27%
Capital
1.44%
Cuprum
1.48%
Provida
1.54%
Planvital
2.36%
Modelo
0.77%
-
2007 2008 2009 2010 2011 9M11 9M12
50
100
150
20% 40% 60% 80% 100%
Fee
Inco
me
(US
$ m
illio
n)
Expenses % Fee Income
Habitat
193
Capital
172
Cuprum
145
Provida
260
Planvital
33
Modelo
24
35.5% 64.0%39.2% 40.3% 58.5%43.1%
Estrictamente Privado y Confidencial
Consalud
Revenues
Cost of sales
Sep – 12
432,205
(354,901)
EBITDA*
SG&A
27,959
(57,871)
Operating Income 22,083
Gross Profit 77,304
• Revenues increased 12.8% due to higher number of contributors and health plans indexed to the CPI
• Cost increased 11.6% mainly due to higher prices charged in the private hospitals
Sep – 11
383,272
(318,074)
19,580
(53,326)
13,917
65,198
Income Statement (US$ Th.) Var. %
12.8%
11.6%
42.8%
8.5%
58.7%
18.6%
14Privado y ConfidencialILC Page 14
EBITDA* 27,959
• SG&A increase 8.5% due to higher cost of sales force
Mandatory contributions (Ch$ million)
Voluntary contributions (Ch$ million)
Dec- 11
182,697
62,748
TOTAL (Ch$ million) 248,798
Others (Ch$ million) 3,353
Sep -12 (LTM)
204,226
69,009
277,766
4,530
19,580
Net Income 18,261 13,722
* EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost
42.8%
33.1%
Estrictamente Privado y Confidencial
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 Total Contributors = 1,550,300
Consalud
22.3%
Colmena
16.3%
Masvida
14.1%
Banmédica
21.1%
Cruz Blanca
20.6%
Others
5.5%
15Privado y ConfidencialILC Page 15
Products offered
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%
19%
14%
25%
25%
Isapre: 2.8 mm
Fonasa D: 3.0 mm
Fonasa C: 2.2 mm
Fonasa B: 4.0 mm
Fonasa A: 3.9 mm
Source: Superintendencia de Salud, as of September 30, 2012Others includes Vida Tres, Ferrosalud and close-ended isapres
Total Contributors = 1,550,300
Estrictamente Privado y Confidencial
Consalud: Key considerations
Number of Contributors (as of September 2012) Averag e monthly contribution 1 in US$ (Sep-12)
345.629 326.601 319.986
253.159
219.354
72.817
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
138,5
164,0
177,7 186,3
220,4
262,0
100
120
140
160
180
200
220
240
260
280
16Privado y ConfidencialILC Page 16
Source: Superintedencia de Salud and ILC 1 Operating revenues divided by the number of contributors; 2 Operating expenses divided by operating revenues
Loss ratio 2 (Sep-12)Number of Beneficiaries (as of September 2012)
81,7%
83,4%
83,9%
84,5%
85,5%85,7%
80%
81%
82%
83%
84%
85%
86%
Consalud Colmena Cruz Blanca Banmédica Másvida Vida Tres
50.000
Consalud Banmédica Cruz Blanca Colmena Másvida Vida Tres
100
Consalud Másvida Banmédica Cruz Blanca Colmena Vida Tres
659.371
613.778 599.352
470.635
417.637
137.690
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
Consalud Banmédica Cruz Blanca Colmena Másvida Vida Tres
Estrictamente Privado y Confidencial
Vida Cámara
Income Statement (US$ Th.)
Revenues
Cost of sales
Sep– 12
197,601
(137,563)
EBITDA*
SG&A
57,114
(10,079)
Operating Income 49,959
Gross Profit 60,038
• Revenues decreased 16.0% mainly from the termination of the D&S insurance since July 2012
• Costs decreased as a result of lower payments on claims under the D&S
• SG&A increased 228.2% due
Sep – 11
235,109
(175,236)
64,726
(2,936)
56,937
59,873
Var. %
(16.0%)
(21.5%)
(11.8%)
243.2%
(12.3%)
0.3%
17Privado y ConfidencialILC Page 17
EBITDA* 57,114 • SG&A increased 228.2% due to higher sales force related to new business lines
Beneficiaries complementary health insurance
Jan - 12
1,376
Beneficiaries complementary health insurance
Sep- 12
130,115
64,726
Net Income 45,865 52,498
* EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost
(11.8%)
(12.6%)
Estrictamente Privado y Confidencial
Vida Cámara: Key considerations
� Until June 2012, Vida Cámaraprovided disability and survivorship (D&S) insurance
� 36% market share in terms of premiums (July 2010-June 2012 period)
� Supplemental health insurance
� Life and catastrophic insurance
� Participation in mass tender processes
New projects
18Privado y ConfidencialILC Page 18
An average of 14,000 new beneficiaries per month
Evolution of the supplemental health insurance bene ficiaries during the year 2012
1,376 5,957
15,801
34,311 41,626
71,400
97,913
117,394
130,115
-
20.000
40.000
60.000
80.000
100.000
120.000
140.000
January February March April May June July August September
Number of
beneficiaries
Estrictamente Privado y Confidencial
Red Salud
Income Statement (US$ Th.)
Revenues
Cost of sales
Sep – 12
254,067
(199,575)
EBITDA*
SG&A
4,543
(41,433)
Operating Income 13,059
Gross Profit 54,492
• Revenues increased 20.6% due to higher activity in Bicentenario and Avansalud
• Costs raised 20.9% due to higher operation in Bicentenario and Avansalud
Sep– 11
210,664
(165,054)
912
(38,021)
7,590
45,610
Var. %
20.6%
20.9%
398.0%
9.0%
72.1%
19.5%
19Privado y ConfidencialILC Page 19
EBITDA* 4,543
• SG&A increased 9.0% due to higher expenses in Bicentenario
Admissions
Emergency room visits
Patient days
Surgeries
Dec 11
912
Net Income 30,460 20,529
* EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost
398.0%
48.4%
Sep 12
37,987
90,555
89,418
39,151
34,910
81,387
89,166
36,483
Estrictamente Privado y Confidencial
Chilean private hospitals by number of beds (2011)
Red Salud: Overview
128
240
253
302
347
350
230
553
Tabancura
Sanatorio Aleman
Las Condes
Santa Maria
Alemana
Indisa
Bicentenario
Davila
493*
Geographic footprint and regional market share by number of beds (2011)
Regions
Metropolitan Region: 14%
17 private hospitals and 32 outpatient care centers
Region I: 33%
Region II: 18%
Region III: 73%
Region IV: 100% 208
20Privado y ConfidencialILC Page 20
96
98
100
103
104
105
105
106
120
126
152
162
H. Clínico del Sur
Avansalud
Las Lilas
Clínica Integral
Clínico de VM
U.C. Central
Del Profesor
U.C. San Carlos
Hospital Fusat
Alemana Temuco
Antofagasta
Reñaca
Nationwide Presence
Region VI: 36%
Region VIII: 15%
Region X: 15%
Region XII: 100%
Region IX: 30%
Region VII: 71%
Region V: 23%
Red Salud hospitals
Others
ILC market share (in terms of private hospital beds): 20%
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.
Estrictamente Privado y Confidencial
Evolution of revenues
Red Salud: Key considerations
Tabancura
Avansalud
Iquique
Bicentenario
Average occupancy
rate
Average length of stay
(days)Sep-12
73.8%
53.6%
57.0%
60.2%
3.14
1.36
2.57
3.00
23,635
13,725
5,865
25,656
19,035
11,398
6,234
27,695
23,510 23,686
5,846
3.000
8.000
13.000
18.000
23.000
28.000
Tabancura Avansalud Bicentenario Iquique
Ch$ million
21Privado y ConfidencialILC Page 21
Source: Clinics of Chile A.G., Cruz Blanca Salud, Banmedica and Red Salud, as of December 31, 2011Note: Red Salud includes beds of subsidiaries and affiliates
Total Private Hospital Beds = 6,101
Red Salud
20%
Banmédica
18%
Cruz Blanca
6%Alemana
6%
Indisa
5%
Las Condes
4%
Others
41%
Dec-10 Dec-11 Sep-12 (LTM)
Estrictamente Privado y Confidencial
Other business
Income Statement US$ Th.
Revenues
Cost of sales
Sep – 12
25,163
(10,062)
EBITDA*
SG&A
5,916
(10,969)
Operating Income 4,308
Gross Profit 15,102
• Revenues increased 16.3% due to higher number of students and higher outsourcing services
• Costs increased 17.7% due to higher salary expenses in both business
• SG&A increased 11.7% due
Sep – 11
21,638
(8,548)
4,778
(9,824)
3,365
13,090
Var. %
16.3%
17.7%
23.8%
11.7%
28.0%
15.4%
22Privado y ConfidencialILC Page 22
EBITDA* 5,916 • SG&A increased 11.7% due to higher expenses in maintenance and administration
N° of private schools
N° of subsidized schools
Sep - 12
9
1
* EBITDA calculated as profit before tax minus depreciation, finance cost and other non operational cost
4,778
Net Income (325) 1,394
23.8%
528.6%
Estrictamente Privado y Confidencial
Financial Summary
23Privado y Confidencial
Estrictamente Privado y Confidencial
Consolidated financials
EBITDA composition (Sep-12)Net Income composition (Sep-12)
Ch$ million Ch$ million
36,836
8,582
21,557 1,921
(1,971)
66,926
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
66.267 123.738
13.154
26.871
14.331 3.115
20.000
40.000
60.000
80.000
100.000
120.000
140.000
24Privado y ConfidencialILC Page 24
Ch$ million
-
Habitat Consalud Vida Cámara Red Salud Others ILC
-
Habitat Consalud Vida Cámara Red Salud Others ILC
80.340 96.867
30.452
26.871
-
20.000
40.000
60.000
80.000
100.000
120.000
140.000
9M11 9M12
20.6%
11.7%110,792
123,738
Vida CámaraEBITDA
30.209
45.347
24.699
21.579
-
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
9M11 9M12
50.1%
21.9%54,908
66,926
Vida CámaraNet Income
Ch$ million
Estrictamente Privado y Confidencial
Consolidated financials
CAPEX Financial Debt (Sep-12)
SHORT TERM
Bonds
Sep – 12
58.8
3.2
Leasing in UF 29.2
Bank loans 26.5
LONG TERM
Bonds
399.3
210.2
Leasing in UF 106.5
Bank loans 82.6
Million USD* Ch$ million
20,551
15,852
19,536
12.000
14.000
16.000
18.000
20.000
22.000
25Privado y ConfidencialILC Page 25
Leasing in UF 106.5
Accumulated Dividends – Year 2012
Net Income
Ch$ millionSeptember 2012
66,926
Encaje ** 9,503
Distributable Net Income 57,423
Dividend Policy Accumulated Dividend ($/share)
Dividend Yield 9M 2012
60%
80%
344.5
459.4
4.9%
6.5%
Cash & cash equivalent for ILC
127.7
* The exchange rate of $470.483 as of September 30th ** Includes the financial income from the legal reserve plus net purchases for this legal reserves
10.000
Dec-10 Dec-11 Sep-12 (LTM)
Estrictamente Privado y Confidencial
26Privado y Confidencial
January, 2013
Santander Conference