Earnings report 1st quarter 2014 - Bupa.cl€¦ · Executive summary Spanish English 94 84 100 40...
Transcript of Earnings report 1st quarter 2014 - Bupa.cl€¦ · Executive summary Spanish English 94 84 100 40...
Earnings report
1st quarter 2014
Revenues:
• LTM revenues amounted to Ch$546.859
million.
• 1Q’14 revenues amounted to Ch$140.195
million, increasing 12% compared to 1Q’13.
EBITDA:
• LTM EBITDA amounted to Ch$28.871
million.
• 1Q’14 EBITDA amounted to Ch$10.018
million, decreasing 15% compared to
1Q’13.
Net profit:
• LTM net profit amounted to Ch$8.367
million.
• 1Q’14 net profit amounted to Ch$3.502
million, decreasing 43% compared to
1Q’13.
The net financial debt at 2013 amounted to
Ch$90.305 million.
Ticker
Price (5/14/14)
Marcelo Bermúdez
Chief Financial Officer
Matías Pinto
Investor Relations
(562) 2 998 1824 / [email protected]
(562) 2 998 1800 / www.cruzblancasalud.cl
Date: 6/04/2014 – Time: 10:30 AM Chile time
Phone number:
Participants 56-2-29981900
Log in: 0109686
March 30th 2014 Exchange rate (Ch$ / US$) 550
Company Statistics
CRUZBLANCA
Ch$ 466
Market Cap (Ch$ bn)
Float (%)
Shares (# mm)
3-Mth Avg. daily volume (Ch$ mm)
Net debt / EBITDA (x)
295
44
638
475
3,13
Price Performance (Ch$)
Date: 6/04/2014 – Time: 11:30 AM Eastern time (New York)
Phone number:
Participants 56-2-29981900
Log in: 0109686
Teleconference
CRUZ BLANCA SALUD S.A.
Executive summary
Spanish English
94 84
100
40
60
80
100
120
23-06-2011 18-03-2014
CBS IPSA
23-06-2011 14-05-2014
Main Results
4Q’13 vs 4Q’12 - Consolidated
EBITDA Close-up
Outpatient business – Quarter Analysis
Hospital business – Quarter Analysis
Health insurance business – Quarter Analysis
International business – Quarter Analysis
EBITDA - Margins by Business Unit
CAPEX
Cash flow
Stock - Market Information
Glossary
Financial Statements
Contents
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3
5
7
8
10
12
14
15
16
17
18
19
21
Insurance Hospitals Outpatient International
Main Results
Cruz Blanca Salud in the fourth quarter showed a solid revenue growth, achieving double digit growth
compared to the same period of 2013. Regarding EBITDA and Net Profit margins, the company faced a
decrease compared to the same period of 2013. The lower margins reached in 1Q’14 are mainly explained by
the increase in the claims ratio of the Insurance business (Isapre Cruz Blanca), which has been increasing
steadily since 2012 and is due to the higher frequency of usage of hospital procedures, higher average prices
and higher expenses in temporary disability claims.
It is worth mentioning that during the last quarter of 2013 Cruz Blanca Life Insurance Company was launched
and started its operations selling supplementary health plans, enhancing the offering of health plans oriented to
new segments, which is in line with the strategy of Cruz Blanca Salud.
3
4th Quarter Overview
4th Quarter Main Drivers
Continued expansion in the outpatient segment (Chile and Perú) and life insurance company.
Higher claims rate in the Insurance business: from 86% in 1Q’13 to 88% in 1Q’14.
0,7pp lower occupancy rate in hospitals, achieving 53% in 1Q’14.
+27.793 additional average policy holders compared to 1Q’13.
1Q'14 1Q'13 Var. 2013 2012 Var.
Revenues (millions of Ch$) 140.195 125.386 11,8% 532.049 471.578 12,8%
EBITDA (millions of Ch$) 10.018 11.827 (15,3%) 30.680 38.810 (20,9%)
EBITDA margin (%) 7,1% 9,4% (2,3%)pp 5,8% 8,2% (2,5%)pp
Net profit (millions of Ch$) 3.502 6.129 (42,9%) 10.993 18.680 (41,2%)
Net margin (%) 2,5% 4,9% (2,4%)pp 2,1% 4,0% (1,9%)pp
# Shares w eighted average (thousands) 637.650 637.650 - 637.650 637.650 -
Daily transaction volume (millions of Ch$) 475 842 (43,6%) 538 631 (14,7%)
Policy holders average (Insurance) 362.294 334.501 8,3% 344.722 313.981 9,8%
Occupation rate (Hospitals) 53,0% 53,7% (0,7%)pp 53,4% 53,2% 0,2%
Used consultations rooms (Outpatient) 1.962 1.545 27,0% 1.656 1.254 32,1%
4
Income Statement Summary (Ch$ millions) 1Q'14 1Q'13 Var.
Revenues 140.195 125.386 12%
Cost of sales (109.368) (97.478) 12%
Gross earnings 30.827 27.907 10%
Administration expense (24.213) (19.196) 26%
Earnings before taxes 4.461 7.396 (40%)
Taxes (958) (1.268) (24%)
Earnings (Loss) 3.502 6.129 (43%)
EBITDA 10.018 11.827 (15%)
Income Statement Summary (Ch$ millions) 2013 2012 Var.
Revenues 532.049 471.578 13%
Cost of sales (428.786) (375.679) 14%
Gross earnings 103.263 95.899 8%
Administration expense (85.278) (67.580) 26%
Earnings before taxes 13.128 24.229 (46%)
Taxes (2.135) (5.549) (62%)
Earnings (Loss) 10.993 18.680 (41%)
EBITDA 30.680 38.810 (21%)
Statement of financial position summary (Ch$ millions) 1Q'14 2013
Cash and cash equivalents + Other f inancial assets (current) 63.687 55.254
Total Assets 500.341 481.977
Financial Debt 153.992 150.831
Net Financial Debt 90.305 95.577
Total Liabilities 305.884 289.623
Equity 194.458 192.354
Total Equity and Liabilities 500.341 481.977
31.153
41.889 38.810 30.680 28.871
2010 2011 2012 2013 LTM(1)
367.445 415.270
471.578 532.049 546.859
2010 2011 2012 2013 LTM(1)
140.1952.725
11.989 679 3.769 1.097
125.386
1Q'13 1Q'14
10.018766 388
404 287 36
11.827
1Q'13 1Q'14
125.386
140.195
1Q'13 1Q'14
11.827 10.018
1Q'13 1Q'14
Outp
atie
nt
1Q’14 vs. 1Q’13 - Consolidated
1Q’14 Revenues amounted to Ch$140.195 million, a
12% increase compared to 1Q’13. Revenue growth for
this period is mainly due to: (1) an increase in policy
holders (8%) in the Insurance business; (2) a greater
activity in outpatient centers and (3) the contribution of
the acquired businesses Anglolab and MediPerú in
Perú.
1Q’14 EBITDA reached Ch$10.018 million,
decreasing by 15% compared to 1Q’13, mainly due
to a higher medical loss ratio in the insurance
business (from 84% in 4Q’13 to 84% in 1Q’14),
which could not be offset by the higher activity in the
providers network.
CAGR (2010 – 1Q’14) = 10%
CAGR (2010 – 1Q’14) = (2%) (15%)
1. Last twelve months (April 2013 – March 2014.
5
Insura
nce
Hospitals
Inte
rnatio
nal
Oth
ers
(1)
Ch$
million
Ch$
million
Insura
nce
Hospitals
Outp
atie
nt
Inte
rnatio
nal
Oth
ers
(1)
12%
Revenues
EBITDA
Ch$
million
Ch$
million
11.151
21.310 18.680
10.993 8.367
2010 2011 2012 2013 LTM(1)
6.129
3.502
1Q'13 1Q'14
1Q’14 net profit amounted to Ch$3.502 million.
The decrease of 43% is mainly explained by the
aforementioned increase in medical loss ratio in
the insurance business (+2pp) and the higher
financial expenses related to higher working
capital needs in the hospital business.
CAGR (2010 – 1Q’14) = (7%)
1. Consolidated adjustments among others.
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Ch$
million
Insura
nce
Hospitals
Outp
atie
nt
Inte
rnatio
nal
Oth
ers
(1)
(43%)
1Q’14 vs. 1Q’13 - Consolidated
Net profit
Ch$
million
3.502
12511
1.108
400 595
6.129
1Q'13 1Q'14
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Cruz Blanca Salud Consolidated(1)
Outpatient
Hospital
Insurance
International
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EBITDA Close-up
EBITDA per quarter by business unit
1. Includes consolidated adjustments among others.
2. Includes the one-time income from insurance liquidation in 3Q’11 related to operations interruption in some Integramédica centers
as a result of 2010’s earthquake for Ch$1.751 million.
Ch$ millions
Ch$ millions
Last twelve month EBITDA by business unit
(2) (2) (2)
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Cruz Blanca Salud Consolidated(1)
Outpatient
Hospital
Insurance
International
LTM EBITDA (Ch$ millions) 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Cruz Blanca Salud Consolidated(1) 41.889 40.523 40.347 39.568 38.810 37.294 30.343 32.660 30.680 28.871
Outpatient 16.476 17.589 18.650 16.606 17.495 16.796 16.853 17.061 17.689 17.285
Hospital 8.996 8.558 7.962 7.099 7.651 7.919 8.006 8.467 8.275 7.888
Insurance 16.072 14.040 13.874 16.192 14.154 13.193 5.830 7.736 5.007 4.241
International (60) (37) (20) 3 (204) (265) (394) (539) (250) (537)
Otros(1) 111 183 127 2 (670) (699) (283) (452) (42) 15
Ajustes(2) 294 190 (246) (335) 385 351 331 386 0 (21)
Quarter EBITDA (Ch$ millions) 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Cruz Blanca Salud Consolidated(1) 8.266 13.343 9.878 8.081 7.508 11.827 2.927 10.398 5.528 10.018
Outpatient 3.118 4.305 5.151 4.032 4.007 3.606 5.208 4.240 4.634 3.202
Hospital 1.681 1.954 1.769 1.694 2.233 2.222 1.857 2.155 2.041 1.834
Insurance 3.502 7.122 3.139 2.427 1.464 6.162 (4.224) 4.334 (1.266) 5.397
International (60) 23 17 24 (267) (39) (112) (121) 22 (326)
Otros(1) 441 (88) (226) (124) (232) (117) 190 (294) 179 (60)
Ajustes(2) (417) 27 27 27 303 (7) 7 83 (83) (28)
Outpatient Business - Quarter Analysis
The outpatient business maintained a consistent growth track,
posting revenues of Ch$30.008 million in 1Q’14, a 14% increase
compared to 1Q’13. The main drivers of this increase are:
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INTEGRAMÉDICA
(Ch$ millions) 1Q'12 2Q'12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14
Revenues 22.197 25.233 25.401 27.726 26.239 31.356 31.606 31.294 30.008
Cost of sales (13.335) (15.009) (14.952) (18.246) (17.645) (20.826) (20.071) (13.922) (18.592)
SG&A (5.569) (6.112) (7.528) (6.788) (6.116) (6.574) (8.651) (13.664) (9.502)
EBITDA 4.305 5.151 4.033 4.007 3.606 5.208 4.240 4.634 3.202
EBITDA margin 19,4% 20,4% 15,9% 14,5% 13,7% 16,6% 13,4% 14,8% 10,7%
Non operating expenses (697) (475) (600) (377) (499) (781) (989) (1.007) (1.043)
Net profit 2.223 2.965 2.464 1.777 1.762 2.955 1.600 2.237 654
LTM revenues (Ch$ mm)
LTM EBITDA (Ch$ mm)
Net financial debt (Ch$ mm)
Total outpatient centers (#)
Current (#)
New (#)
Avg consultation rooms (#)
124.265
17.285
34.249
29
24
5
1.990
Key figures
(1) Higher activity generated by the beneficiaries of Isapre Cruz
Blanca (20%).
(2) The opening of new medical centers, which include: Bandera
(April 2013) and Bío Bío (July 2013), Reñaca (July 2013),
Plaza Sur (January 2014) Plaza Vespucio (March 2014).
The above resulted in higher revenues in medical consultations
(16%), diagnostic exams (10%), ancillary services (20%) and other
services (15%).
Revenues
1.545 1.598 1.728 1.755 1.962
5.662
6.540 6.099 5.945
5.098
-
500
1.000
1.500
2.000
2.500
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Consultation rooms (avg)
Monthly revenue per averageconsultation room (Ch$ th)
Regarding expenses, operating costs increased by 5% in
1Q’14 compared to 1Q’13, mostly because of the increased
activity explained earlier.
SG&A expenses increased significantly from Ch$6.116 in
1Q,13 to Ch$9.502 in 1Q’14 (55%) mainly due to new
medical centers opened. This openings had an important
impact in personnel costs (20%), utilities (30%) and leases
(34%).
Outpatient Business - Quarter Analysis
9
1Q’14 EBITDA decreased compared to the same
period of 2013, mainly as a result of the new
centers opened that contributed with negative
EBITDA due to its fixed costs and its normal
maturity curve.
EBITDA
Integramédica Revenues EBITDA EBITDA margin
(Ch$ millions) (Ch$ millions) (%)
4Q'13 30.008 3.202 10,7%
New centers 524 (270)
4Q'13 (excluding new centers) 29.484 3.472 11,8%
1. New centers consist in 4 recently opened centers.
10.912 10.502 10.629 9.331 11.484
9.493 11.093 10.925 10.787
10.460
3.358 3.368 3.526
3.613 4.431
3.323 3.737 3.921
3.803
4.349
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
Other Ancilliary services
Diagnostic exams Medical consultations
(1)
Hospital Business - Quarter Analysis
Cruz Blanca Salud´s hospital network reached revenues of
Ch$14.423 million in 1Q’14, a 5% increase compared to the
same period of 2013. The abovementioned growth is mainly
explained by: (1) Clínica Antofagasta’s higher average prices,
that offsets its lower occupancy rate, (2) a higher activity level
in the home hospitalization business Clinical Service (16%) and
(3) Clínica Reñaca’s increase in occupancy rate and its derived
services such as medications.
10
LTM revenues (Ch$ mm)
LTM EBITDA (Ch$ mm)
Net financial debt (Ch$ mm)
Hospitals (#)
Avg beds:
Normal (#)
Critical (#)
Occupancy rate (%)
58.341
7.888
29.093
3
366
286
80
53
Key figures
HOSPITALS
(Ch$ millions) 1Q'12 2Q'12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14
Revenues 11.776 12.339 12.543 13.696 13.744 14.000 14.798 15.120 14.423
Cost of sales (9.493) (10.219) (10.361) (10.833) (9.904) (9.782) (9.842) (17.160) (11.531)
SG&A (1.008) (1.027) (1.156) (1.378) (2.568) (3.123) (3.598) 3.301 (1.925)
EBITDA 1.954 1.769 1.694 2.233 2.222 1.857 2.155 2.041 1.834
EBITDA margin 16,6% 14,3% 13,5% 16,3% 16,2% 13,3% 14,6% 13,5% 12,7%
Non operating expenses (138) 324 (302) (447) (163) (582) (720) (961) (682)
Net profit 688 723 1.231 1.875 811 388 941 532 300
(1) Excludes revenues from Clinical Service
(1) (1) (1) (1) (1)
Overview
EBITA for the overall hospital business in 1Q’13 amounted to
Ch$1.834 million, 17% below 1Q’13. This decrease is mainly
due to: (1) higher personnel expenses; and (2) the competitive
environment faced by Clínica Reñaca, that could not be offset
by the better sales mix in Clínica Antofagasta and the higher
activity in bed days of Clinical Service.
1Q’14 net profit was of Ch$300 million.
2. Personnel cost were reclassified into from SG&A to COS.
(2)
286 286 286 286 286
80 80 80 80 80
11.906 12.147 12.771 13.022 12.360
(1. 000)
1.000
3.000
5.000
7.000
9.000
11.000
13.000
15.000
-
100
200
300
400
500
600
700
800
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
# Critical beds (avg)
# Normal beds (avg)
Monthly revenue per bed (Ch$ th)
11
4Q’13 revenue
breakdown per hospital
(%)
Inversiones Clínicas CBS, this operation consolidates the home hospitalization business (acquired in July
2012) and the Clínica Santiago project including its start-up costs. Consolidated revenues were of Ch$852
million, increasing by 27% compared to the same period of the previous year, with 4.017 bed days in the
quarter (+16% compared to 1Q’13). 1Q’14 EBITDA reached Ch$136 million, increasing 35% as the result of (1)
the increase of sales; (2) the dilution of fixed costs; and (3) the capitalization of project expenses of Clínica
Santiago.
Clínica San José reached revenues of Ch$1.175 million in 1Q’14 decreasing 9% compared to 1Q’13. This
decrease is mainly explained by the lower average prices, specially in hospitalization, surgery and imaging,
which cannot be offset by the increase of the hospital´s activity levels measured as bed days in the quarter.
EBITDA margin of 1Q’14 was of 5%, decreasing 18pp compared to 1Q´13, mainly due to the lower revenues
and fixed costs.
Clínica Reñaca generated revenues of Ch$5.479 million in 1Q’14,
decreasing 1% compared to 1Q’13. The higher occupancy rate
(+3pp) could not compensate the lower average prices, specially in
hospitalization. In the quarter, EBITDA margin was of 6%, bellow the
11% of 1Q’13, mainly due to higher SG&A expenses as the result of
personnel (9%), advertising (115%),insurance (17%) and financial
assistance (24%).
Clínica Antofagasta in 1Q’14 posted revenues of Ch$6.917 million a 10% increase compared to 1Q’13, mainly
due to better average prices specially in hospitalization (11%), medications (17%), offsetting the lower
occupancy rate. 1Q’14 EBITDA margin was of 19%, unchanged compared to 1Q’13 –even though EBITDA is
higher- as the result of higher costs because of (1) the need of more medical personnel, and (2) increased third
party services.
Hospital Business - Quarter Analysis
38%
49%
8% 5%
ClínicaReñaca
ClínicaAntofagasta
Clínica SanJosé
ClinicalService
Health Insurance business - Quarter Analysis
Health Insurance business posted revenues of Ch$103.501 million in
1Q’14, increasing by 13% compared to 1Q’13. This increase is
mainly explained by:
(1) 8% growth in the number of policy-holders, from an average of
334.501 in 1Q’13, to an average of 363.294 in 1Q’14. This
increase in policy-holders was due to:
•Higher health plans sales as a result of the favorable
economic cycle of the country;
•The successful commercialization of MaxSalud(1) plans.
(2) 29% increase in GES premium, which contributes with additional
revenues of Ch$1.000 million per month since July of 2013.
12
1. The new plans MaxSalud are oriented to Fonasa affiliates who seek quality services at affordable prices, it operates through a general practitioner and a
closed providers network (3 contracted hospitals and Integramédica’s outpatient centers in Santiago).
2. GES is included in each Isapre plan by law and currently covers 80 diseases and medical conditions. The price readjustment can be performed every 3
years, unless new patologies are added before that term. In 2013 11 new patologies were added to the previous 69. The effect of the premium
readjustment is captured starting in the date of the price change and actual claims cost increase steadily in the 3 year period, typically resulting in
positive margins in the first part of the 3-year period.
LTM revenues (Ch$ mm)
LTM EBITDA (Ch$ mm)
Net financial debt (Ch$ mm)
Branches (#)
Avg :
Police holders (#)
Beneficiaries (#)
LTM claims rate (%)
546.859
4.241
(19.265)
79
362.294
652.462
87,9
Key figures
HEALTH INSURANCE
(Ch$ millions) 1Q'12 2Q'12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14
Revenues 82.360 85.045 86.492 89.348 91.512 92.683 98.065 100.374 103.501
Cost of sales (66.058) (73.236) (77.084) (79.045) (75.386) (86.816) (83.378) (91.743) (86.774)
SG&A (9.787) (9.336) (7.908) (9.453) (10.872) (11.011) (11.255) (10.955) (12.339)
EBITDA 7.122 3.139 2.427 1.464 6.162 (4.224) 4.333 (1.265) 5.397
EBITDA margin 8,6% 3,7% 2,8% 1,6% 6,7% (4,6%) 4,4% (1,3%) 5,2%
Non operating expenses 872 867 1.072 1.049 530 977 1.031 1.577 1.339
Net profit 5.978 2.789 1.277 1.530 4.638 (3.333) 3.462 (841) 4.626
(3) An increase in the price of health plans of 2,4% (real terms) in
July 2013, which is gradually captured according to the
anniversary of each contract;
(4) And higher premium per policy holder due to an increase in
affiliates´ salaries.
Revenues
334.501 340.638 349.103 354.645 362.294
91,2 90,7 93,6 94,0 94,6
70,0
80,0
90,0
100,0
110,0
120,0
130,0
100.000
150.000
200.000
250.000
300.000
350.000
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Policy holders (Avg)
Revenues per average pol icy holders (Ch$
thousands)
Health Insurance business - Quarter Analysis
With regards to costs, the claims rate in the 1Q’14 had an
increase of 2pp compared to 1Q’13 mainly due to: (1) 1pp
increase in temporary disability claims; and (2) 1pp increase in
ambulatory expenses.
Claims rate has shown an increasing trend in the period 1Q’13
to 1Q’14. This increase is explained by: (1) an increase in
medical leave expenses due to a higher daily cost as a result
of the increase in average affiliates wages; and (2) higher
average price per service resulting from: (i) price readjustment
performed by providers to the industry and (ii) a service mix
with more expensive procedures (elective surgeries).
Regarding to hospital expenses, there has been an increase in
the frequency of elective surgeries such as bariatric,
rhinoplasty, hernia, among others.
13
Claims rate (%)
Hospitalizations Outpatient Medical leave Others
SG&A expenses in the quarter grew compared to 1Q’13 due to the fixed costs related to the implementation
of Cruz Blanca Salud´s Life Insurance Company, which started its operations in the second semester or 2013.
Costs and SG&A
1Q’14 EBITDA decreased a 12% compared to 1Q’13 amounting Ch$5.397 million. This is mainly referred to
the abovementioned increase in the medical loss ratio.
4Q’13 Net Profit was of negative Ch$4.2620 million.
86,3% 88,3% 87,4% 88,2% 88,4%
-
10, 0%
20, 0%
30, 0%
40, 0%
50, 0%
60, 0%
70, 0%
80, 0%
90, 0%
100, 0%
28,9% 29,3% 29,7% 29,4% 29,5%
40,4% 41,3% 40,0% 40,4% 40,7%
16,2% 16,6% 16,6% 17,1% 17,2%
0,9% 1,0% 1,1% 1,3% 1,0%
LTM1Q'13
LTM2Q'13
LTM3Q'13
LTM4Q'13
LTM1Q14
-
5,0%
10, 0%
15, 0%
20, 0%
25, 0%
30, 0%
35, 0%
40, 0%
45, 0%
Regulatory framework(1)
There has not been further developments regarding the bill in Congress. The bill was at the Senate's Health
Committee and has not been reviewed in 2014. For the bill to be passed it requires acceptance by the Health
Committee of the Senate, the Senate and finally the House of Representatives. All of the above is highly
unlikely to occur since the new government has stated that it will withdraw the original bill and substitute it by a
new one that will include the opinion of the commission of experts that will be summoned by the new
government in the next few months.
1. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not
purport to be all-inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct
their own independent investigation and analysis of the company. Interested parties can only rely on the result of their own investigation and the
representations and warranties made in any definitive agreement that may be executed.
International business - Quarter Analysis
Revenues in Cruz Blanca Salud Perú for 1Q’14 amounted to Ch$1.664 million, increasing 194% compared to
1Q’13 explained by the incremental revenues from the recently acquired laboratory Anglolab (July 2013) and
outpatient network MediPerú (September 2013). However 4Q’13 EBITDA was of Ch$(326) million mainly
because of fixed costs due to the opening in march 2014 of the first Integramédica outpatient medical center.
14
6.162
2.2223.606
11.827
5.397
1.8343.202
10.018
5,2%
12,7%
10,7%
7,1%
6,7%
16,2%
13,7%
9,4%
0
2.000
4.000
6.000
8.000
10. 000
12. 000
14. 000
Insurance Hospital Outpatient Cruz Blanca Salud(1)
Ch$Millions
13.1937.919
16.796
37.294
4.2417.888
17.285
28.871
1,1% 13,5% 13,9%
5,3%
3,7% 15,1%
16,1%
7,7%
0
5.000
10. 000
15. 000
20. 000
25. 000
30. 000
35. 000
40. 000
Insurance Hospital Outpatient Cruz Blanca Salud(1)
Ch$Millions
EBITDA - Margins by Business Unit
1Q’13 1Q’14 4Q'12 4Q'13 4Q'12 4Q'13 1Q’13 1Q’14
LTM 1Q’13 LTM 1Q’14 LTM 1Q’13 LTM 1Q’14 LTM 1Q’13 LTM 1Q’14 LTM 1Q’13 LTM 1Q’14
15
1. Includes consolidated adjustments among others.
3.870
9.7577.196
4.382
2Q'13 3Q'13 4Q'13 1Q'14
CAPEX
1Q’14 CAPEX was of Ch$4.382 million. The main investments were oriented to the Outpatient
business, in which Ch$2.025 million were invested in the habilitation and equipment of new centers
which will open soon. During 1Q’14, the Hospital business invested Ch$1.984 million, mainly
concentrated in: (1) building permits of Clínica Santiago project; and (2) Clínica Antofagasta
remodeling and acquisition of new equipment. CAPEX in the International segment reached
Ch$1311 million.
16
CAPEX breakdown
(Ch$ millions)
2013 = Ch$25.065 million
46%
45%
1%7%
0%Outpatient
Hospitals
Insurance
International
Others
Cash flow
17
STATEMENT OF CASH FLOWS,
DIRECT METHOD (Ch$ millions)
01-01-2014 /
31-03-2014
01-01-2013 /
31-03-2013
Net cash flows from (used in)
operating activities 12.576 10.501
Classes of collections from
operating activities 174.166 151.347
Classes of payments (161.770) (135.883)
Other operating collections and
payments 180 (4.962)
Net cash flows from (used in)
investment activities 8.961 3.733
Cash flows used to obtain control on
subsidiaries or other businesses 0 (2)
Purchase of property, plant and
equipment (2.490) (2.036)
Other investment activities 11.451 5.771
Net cash flows from (used in)
financing activities (1.497) (455)
Net increase (decrease) of cash
and cash equivalents, before the
effect of changes in exchange
rate
20.040 13.779
Effect of changes in the exchange
rate on cash and cash equivalents 313 8
Net Increase (decrease) of Cash
and Cash Equivalents 20.353 13.787
Cash and cash equivalents at
beginning of period 19.514 45.357
Cash and cash equivalents at
closing of period 39.867 59.144
1Q’14 net cash flow from operating activities
was of Ch$2.075 higher than the same period
of 2013.
CAPEX flow of Ch$2.490 was financed with
the better net cash flow.
40
60
80
100
120
140
23-06-2011 18-03-2014
CruzBlanca vs IPSA (market index)
CBS IPSA
Stock – Market Information
CRUZBLANCA shares reached a price of Ch$466 on May 14th, 2014. From the date of the IPO (June 23,
2011) up to May 14th, 2014, the shares achieved an average daily trade volume of Ch$522(1) million.
CRUZBLANCA Market Cap
Closing Price 5/14/2014 (Ch$ per share) 470 Number of shares (#) 637.650.000
2014 High (Ch$ per share) 490 Market Cap 5/14/2014 (Ch$ millions) 294.926
2014 Low (Ch$ per share) 415 Free Float 44%
Profitability of shares Daily trading volume(1)
Price stock (6/23/2011 – 3/18/2014) (6.0%) YTD'14 (Ch$ millions) 379
Dividend yield 2,4%
1. Excluding the volumes traded at the time of the IPO and Public Tender Offer.
18
94
84
23-06-2011 14-05-2014
Glossary
1. Current account surplus fee and Management fee are Isapre revenues.
19
Fundamentals Description Unit 1Q'14 1Q'13
EBITDA(1)Gross earnings - Administration
sales + Depreciation and
amortization + Current account
surplus fee +Management fee
(Annual)
Ch$ millions 10.018 11.827
EBITDA Margin EBITDA / Revenue from
ordinary activities (Annual)
% 7,1 9,4
Net margin Earnings (loss) / Revenue from
ordinary activities (Annual)
% 2,5 4,9
ROE Earnings / Equity (Annual) % 4,3 8,9
Net f inancial debt / EBITDA (Other current f inancial liabilities
+ Other non current f inancial
liabilities - Cash and equivalents
- Other current f inancial
assets) / EBITDA
Times 3,1 1,8
Debt-to-equity Total liabilities / Equity Times 1,6 1,5
Definitions Description
Mandatory Health
Insurance
Employed workers must choose between enrolling in Fonasa or an Isapre;
premiums are deducted from payroll. However, enrollment is voluntary for the
self-employed
Fonasa “Fondo Nacional de Salud” or National Health Fund is the public or Government’s
health plan which provides healthcare and sick-leave coverage for the very poor
and to any person that wishes to enroll. It offers one health plan to all its
members, with different copayment levels according to family income
Isapre “Instituciones de Salud Previsional” are private prepaid health insurance plans
that cover healthcare and sick leave. They offer many different health plans
according to risk factors (age, gender, employment status) and to premiums paid
Plan of Explicit Guarantees
in Health (GES)
Coverage of a required number of pathologies, guaranteed by Law, that both
Fonasa and Isapre’s must cover
Current account surplus
fee
In compliance with regulations of the Superintendencia de Salud (National Health
Authority), these fees are charged to policy holders’ current accounts that hold
surplus generated by their health plan premium payments
Management fee Fees charged to other Isapre’s for the management of their portfolios
20
Fundamentals Description Unit 1Q'14 1Q'13
Used consultation rooms
(Integramédica)
Corresponds to the average
consultation room available
(Annual)
Consultation
room
1.962 1.545
Revenues / Consultation
rooms
Revenues (Annual) / Used
consultations room / Months
Ch$ thousands 5.098 5.662
Bed days (hospitals) Days used in hospitals beds
(Annual)
Days 17.060 17.703
Occupation rate (hospitals) Bed days / maximum utilization
capacity of beds (Average
number of beds x days in the
year)
% 53,0 53,7
Isapre claims rate (Health care costs + temporary
disability claims) / Revenue
from ordinary activities
(Annual)
% 88 86
Policy holders Corresponds to the average of
policy holders (Annual)
Persons 362.294 334.501
Revenues / Policy holders Revenue / Number of policy
holders
Ch$ thousands 94,6 91,2
Statement of Financial Position
21
ASSETS (Ch$ thousands) 1Q'14 2013
CURRENT ASSETS
Cash and cash equivalents 36.438.925 38.682.220
Other f inancial assets, current 27.247.987 16.571.473
Other non-financial assets, current 9.077.435 7.643.037
Trade debtors and other accounts receivable, current 50.708.623 46.767.544
Receivables from related entities, current 365.993 485.993
Inventory 2.185.100 2.407.095
Taxes receivable, current 8.073.650 7.882.987
Total current assets 134.097.713 120.440.349
NON-CURRENT ASSETS
Other f inancial assets, non current 15.790.109 14.295.813
Other non-financial assets, non current 37.132.231 36.869.057
Investments stated at participation method 295.089 291.369
Intangible assets other than goodw ill 103.771.586 102.943.496
Goodw ill 83.695.282 83.533.337
Property, plant and equipment 119.160.575 116.913.293
Investment property 1.758.379 1.768.412
Deferred tax asset 4.640.072 4.922.321
Total non-current assets 366.243.323 361.537.098
TOTAL ASSETS 500.341.036 481.977.447
Statement of Financial Position
22
LIABILITIES (Ch$ thousands) 1Q'14 2013
CURRENT LIABILITIES
Other f inancial liabilities, current 26.827.678 24.158.186
Trade accounts payable and other payables 97.618.367 88.122.642
Payables to related entities, current - -
Other short-term accruals 24.533.173 23.447.529
Current tax liabilities 736.432 680.009
Current provisions related to employee benefits 943.761 856.307
Other non-financial liabilities, current 5.659.688 3.744.340
Total current liabilities 156.319.099 141.009.013
NON CURRENT LIABILITIES
Other f inancial liabilities, non current 127.164.662 126.672.614
Non current liabilities 4.214 4.214
Deferred tax liability 21.128.915 20.148.123
Other non current, non financial liabilities 1.266.628 1.789.364
Total non current liabilities 149.564.419 148.614.315
Total Liabilities 305.883.518 289.623.327
EQUITY
Issued capital 65.253.465 65.253.465
Accumulated earnings (losses) 55.763.391 53.382.056
Premium in issue of shares 51.378.174 51.378.174
Other reserves 10.256.321 10.601.632
Equity attributable to the controlling party 182.651.351 180.615.327
Non-controlling interests 11.806.167 11.738.792
Total Equity 194.457.518 192.354.119
TOTAL EQUITY AND LIABILITIES 500.341.036 481.977.447
Statement of Income
23
Income Statement (Ch$ thousands) 1Q'14 1Q'13 2013 2012
Revenue from ordinary activities 140.195.209 125.385.812 532.049.487 471.577.899
Cost of sales (109.368.341) (97.478.418) (428.786.161) (375.678.674)
Gross earnings 30.826.868 27.907.394 103.263.326 95.899.225
Other income, by function 365.149 350.263 2.169.709 1.671.669
Administration expenses (24.212.811) (19.196.376) (85.278.148) (67.579.683)
Other expenses, by function (781.523) (550.062) (1.070.066) (1.016.523)
Other earnings (losses) (112.578) (113.345) (149.817) (513.686)
Financial income 867.814 1.141.615 3.955.573 3.601.858
Financial costs (2.471.833) (2.160.359) (9.579.036) (8.587.072)
Exchange rate differences 6.255 (11.711) (108.212) 13.664
Restatement unit income (26.555) 28.735 (75.241) 739.491
Earnings before taxes 4.460.786 7.396.154 13.128.088 24.228.943
Income tax expense (958.486) (1.267.580) (2.134.847) (5.548.837)
Earnings (losses) from continuing operations 3.502.300 6.128.574 10.993.241 18.680.106
Earnings (losses) from continuing operations
Earnings 3.502.300 6.128.574 10.993.241 18.680.106
Earnings attributable to
Earnings attributable to ow ners of the controlling interests 3.401.908 5.894.066 10.327.248 17.654.531
Earnings attributable to non controlling interests 100.392 234.508 665.993 1.025.575
Earnings (loss) 3.502.300 6.128.574 10.993.241 18.680.106
Earnings per share
Earnings per split share
Earnings per split share in continuing operations 5,3 9,2 16,2 27,7
Earnings (loss) per split share in discontinued operations - - - -
Earnings per split share 5,3 9,2 16,2 27,7