RESULTS PRESENTATION SEPTEMBER 2017 HIGHLIGHTS 9M16 9M17 YoY - - PowerPoint PPT Presentation

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Dec 05, 2023 232 likes •400 views

RESULTS PRESENTATION SEPTEMBER 2017 HIGHLIGHTS 9M16 9M17 YoY NET LOANS (1) $ 1,183 $ 1,380 +16.7% Enterprises Division $ 789 $ 890 +12.8% i. Factoring $ 322 $ 415 +28.9% ii. Leasing $ 174 $ 153 -11.8% iii. Corporate

SLIDE 1

RESULTS PRESENTATION SEPTEMBER 2017

SLIDE 2

HIGHLIGHTS

9M16 9M17 Δ YoY NET LOANS(1) $ 1,183 $ 1,380 +16.7%

Enterprises Division $ 789 $ 890 +12.8% i. Factoring $ 322 $ 415 +28.9% ii. Leasing $ 174 $ 153

11.8%

iii. Corporate Lending $ 293 $ 321 +9.8% Auto-Financing Division $ 364 $ 449 +23.4%

NPLs > 90 DAYS(2) 4.5% 4.2%

30 bps

Enterprises Division 4.4% 3.8%

60 bps

i. Factoring 5.6% 3.1%

250 bps

ii. Leasing 7.5% 8.9% +140 bps iii. Corporate Lending 1.2% 2.1% +90 bps Auto-Financing Division 5.0% 5.3% +30 bps

REVENUES $ 140 $ 170 +21.6% GROSS MARGIN $ 67 $ 72 +6.6% NET PROFIT $ 25 $ 27 +7.8% ROAA(3) 2.2% 2.2%

ROAE(4)

8.6% 8.7% +10 bps

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions. 2) NPLs > 90 days defined as Non-Performing Loans > 90 days / Gross Loans. 3) ROAA defined as Annualized Net Income / Total Assets Average. 4) ROAE defined as Annualized Net Income / Total Equity Average.

SLIDE 3

GROSS MARGIN AND NET PROFIT NET LOANS(1)

$72 $67 $96 $27 $41 2015 9M2016 +6.6% +7.8% 9M2017 $25 2016 $35 $32 $80 2014 $91 Net Profit Gross Margin 9M2016 $1,255 2014 $1,242 9M2017 $1,183 +16.7% CAGR: +8.1% $1,380 2016 2015 $1,073

MAIN INDICATORS

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions.

NET PROFIT BREAKDOWN (9M2016 vs. 9M2017) REVENUES 3

$140 9M2017 $226 +21.6% $196 2014 9M2016 2015 $170 2016 $246 $5 $6 $25 $27 SG&A 9M2016 +7.8% Subsidiaries Op. Margin without Provisions 9M2017 $-5 Provisions and Write-Offs $-4 Taxes $1

Against Profit In favor of Profit

SLIDE 4

BREAKDOWN BY TYPE OF CLIENT(2) 9M17 NET LOANS BREAKDOWN(1)

DIVERSIFICATION

TOTAL PORTFOLIO CONCENTRATION(3) 9M17 ECONOMIC SECTOR DISTRIBUTION(2) 9M17 4

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions. 2) Does not include auto-financing clients. 3) Includes factoring, leasing, corporate lending and auto-financing.

15% +16.7% 9M2017 $1,380 3% 33% 23% 11% 30% $1,183 3% 24% 24% 13% 14% $1,242 32% 32% 4% $1,255 14% 3% 2015 38% 2016 3% 29% 14% $1,073 2014 30% 27% 9M2016 25% 31% 27% Factoring Others Auto-Financing Corporate Lending Leasing Top 5 Clients Top 25 Clients Top 15 Clients 28% 13% Top 35 Clients 34% 18% 29% Top 50 Clients 33% 43% 26% 21% 39%

December 2015

Enterprises

17% Finance Services 21% Non-Metal Manufacturing Industry Agriculture, Cattle Raising and Forestry Construction 6% 12% Real Estate Business and Rental Activities 14% Wholesale and Retail Trade 7% Transportation, Storage and Communications 8% 3% Metal Manufacturing Industry Education 5% 3% 4% Others Fishery 37% 33% 30% 85% 12% 3%

% CLIENTS % PORTFOLIO

SMEs Large Enterprises Corporations 65% 70% 67% 67% 64%

SLIDE 5

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions. 2) Yield defined as annualized income/average net loans. 3) NPLs > 90 days defined as Non-Performing Loans > 90 days / Gross Loans.

YIELD(2)

ENTERPRISES DIVISION

5 NET LOANS BREAKDOWN(1)

17% 41% $839 21% 20% 12,8% $890 9M2017 36% 9M2016 $789 37% 47% 22% 2016 36% 43% 2015 $868 45% 35% 2014 $696 21% 19% 59% Factoring Corporate Lending Leasing 11.4% 11.8% 11.9% 9M2016 9M2017 11.6% 2016 2015 13.1% 2014

NPLs > 90 DAYS(3)

2014 4.2% 3.8% 6.1% 4.4% 5.2% 9M2016 9M2017 5.7% 4.2% 5.3% 2015

9.6%

6.1% 2016 7.4% NPLs > 30 days NPLs > 90 days

SLIDE 6

Source: Tanner, Companies Financial Statements. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions. 2) Market Share calculated as Tanner net loans over industry total portfolio, taking on consideration only institutions that appear in chart “Loans by Company”. 3) Yield defined as annualized income/average net loans.

ECONOMIC SECTOR DISTRIBUTION 9M17 NET LOANS(1), # CLIENTS AND MARKET SHARE(2)

$255 $152 $115 $91 $343 $170 $89 $79 $64 $19 $1,021 $768 $693 $415 $369

NET LOANS(1) BY COMPANY 9M17

Non-Banking Institution 9M2017 2016 13.5% 15.5% 14.4% 13.9% 2015 9M2016 14.9% 2014

FACTORING

$302 7.0% $413 8.0% 9.1% 2,258 2014 2016 $362 1,880 $415 9M2017 3,131 9M2016 8.3% 2,548 2015 8.9% $322 3,279 Market Share Net Loans Clients

YIELD(3)

Institutions with figures as of Dec-16 Non-Metal Manufacturing Industry 17% 5% Real Estate Business and Rental Activities 7% Construction 4% 5% Fishery Education Agriculture, Cattle Raising and Forestry Metal Manufacturing Industry Wholesale and Retail Trade Others 11% 4% 6% 24% 19% Transporation, Storage and Communications

SLIDE 7

NET LOANS(1) AND # CLIENTS PORTFOLIO CONCENTRATION 9M17 ECONOMIC SECTOR DISTRIBUTION 9M17 YIELD(2)

8.5% 9.0% 9.4% 2015 2016 8.2% 2014 9M2017 5.1% 9M2016

CORPORATE LENDING

Top 5 Clients 76.8% 69.0% 57.4% Top 20 Clients 64.1% 78.4% Top 10 Clients 50.0% Top 50 Clients 86.7% 86.6% 82.3%82.0% Top 30 Clients 9M2017 2015

$321 $293 $299 $149 978 971 1,261 2016 1,200 2015 9M2016 $392 2014 9M2017 Clients Net Loans Agriculture, Cattle Raising and Forestry 2% Fishery Wholesale and Retail Trade 10% 4% 9% 8% Finance Services 5% Education Construction Real Estate Business and Rental Activities 7% 52% Non-Metal Manufacturing Industry Others 4%

SLIDE 8

NET LOANS(1) AND # CLIENTS PRODUCT BREAKDOWN ECONOMIC SECTOR DISTRIBUTION 9M17 YIELD(2)

11.4% 12.7% 9M2016 9M2017 14.7% 11.8% 12.4% 2014 2015 2016

LEASING

36% 52% 31% 27% 33% 21% Machinery and Equipment Vehicles Real Estate $ 153 $ 174 9M2017 2015 912 9M2017 $153 $174 40.6% 39.4% 30.4% 30.4% 9M2016 1,073 2015 29.0% 36.2% 33.3% 30.3% 1,116 30.5% $177 $174 1,269 2016 $135 57.1% 15.5% 27.4% 2014 27.2% 51.9% 1,387 20.8% Vehicles Clients Real Estate Machinery and Equipment Others Metal Manufacturing Industry Hotels and Restaurants 3% Community Service Activities 3% Agriculture, Cattle Raising and Forestry 8% 11% Construction 11% Wholesale and Retail Trade 13% 6% Real Estate Business and Rental Activities Finance Services 2% 25% 17% Transporation, Storage and Communications

SLIDE 9

NET LOANS(1) AND # CLIENTS NET LOANS(1) BY COMPANY

AUTO-FINANCING DIVISION

Source: Tanner, Companies Financial Statements. ANAC, CAVEM. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Net loans defined as net of provisions. 2) Yield defined as annualized income/average net loans. 3) Sales of new vehicles according to ANAC. Sales of used vehicles according to CAVEM.

INDUSTRY(3) YIELD(2)

24.6% 9M2017 2016 25.3% 25.0% 2014 9M2016 2015 25.3% 24.9% $ 1.563 $ 466 $ 449 $ 205

49,704 48,113 55,041 48,883 2014 9M2016 2016 $336 $449 9M2017 49,610 $380 $364 2015 $339 Net Loans Clients 348 296 306 282 338 972 949 877 868 4.9 9M2016 4.8 2016 4.9 1,003 2015 9M2017 4.6 2014 4.8 Total Number of Vehicles (million) Used Vehicles Sold (thousand) LTM New Vehicles Sold (thousand) LTM

SLIDE 10

 Provides brokerage and asset management services through 3

entities: ▪ Corredores de Bolsa (TCB): brokerage services, ranked #12 in the market. ▪ Asset Management (TAM): distribution of third parties feeder funds. ▪ Asesorías e Inversiones (TAI): strategic advisory services.

 >$ 450 USD Million in AUMs and > 2,000 clients. FUNDAMENTALS GROSS PROFIT(1)

INVESTMENTS

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Gross profit defined as revenues net of costs. Includes Treasury figures.

ASSETS UNDER MANAGEMENT MARKET SHARE BY TOTAL TRADING VOLUME 9M17

2015 $7.4 2016 2014 9M2017 9M2016 $10.8 +68.8% $6.4 $4.7 $10.0

8.2%

$395 2014 2015 9M2016 2016 $247 $499 9M2017 $313 $461 Banestado 19.4% BBVA 15.0% Banchile 9.4% Santander 9.4% BCI 9.2% Larraín Vial 5.0% Security 4.6% Euroamérica 4.2% BICE 3.9% CrediCorp 3.7% Itaú 3.3% Tanner Corredores de Bolsa 3.1% Others 9.7%

SLIDE 11

NPLs > 90 DAYS(1) – FACTORING NPLs > 90 DAYS(1) – AUTO-FINANCING

2.1% 9M2017 5.6% 2.7% 2.5% 3.1% 6.3% 2.7% 1.6% 1.8% 5.6% 2014 2013 2.4% 5.4% 9M2016 1.5% 2.7% 2015 2.2% 2.1% 5.0% 2016 2.2% 4.5% 2.1% 2.1% 2016 5.3% 3.5% 4.2% 2.5% 4.3% 3.1% 6.7% 2013 10.2% 3.6% 4.8% 2.9% 2.2% 4.6% 5.0% 3.3% 2.5% 5.6% 5.1% 5.3% 2014 4.3% 5.7% 5.8% 2015 6.9% 5.1% 9M2017 2.7% 9M2016

Write-offs 360 days

8.2% 2014 0.0% 9.1% 8.9% 7.5% 9M2017 2.1% 9M2016 1.2% 1.5% 7.0% 0.6% 2016 2015 6.0% 2013 Corporate Loans Leasing

NON-PERFORMING LOANS

NPLs > 90 DAYS(1) – LEASING AND CORPORATE LOANS

Source: Tanner, other companies financial statements. 1) NPLs > 90 days defined as Non-Performing Loans > 90 days / Gross Loans.

NPLs > 90 DAYS(1) – TANNER CONSOLIDATED

4.8% 4.8% 2014 2013 5.5% 4.2% 4.5% 2016 4.3% 2015 9M2016 9M2017

SLIDE 12

 Conservative mismatch of assets and liabilities, with no relevant

exposure to term, interest rates and/or foreign exchange.

▪

Assets, average duration: 1.0 year.

▪

Liabilities, average duration: 1.7 years.

 Access to diversified sources of funding: ▪

Bonds: 8 local bonds and 2 international bonds outstanding.

▪

Commercial Paper: first-ever, current #1 issuer in the local market.

▪

Bank Loans: strong relationship with Chilean comercial Banks and increasing access to foreign institutions.

 Total Liabilities as of 9M2017: $ 1,165 million. ASSET AND LIABILITY MANAGEMENT FINANCIAL POSITION

DEBT PROFILE AND BALANCE SHEET

29,4 32,9 52,0 46,0 27,7 32,9 52,0 46,0 27,7

Source: Tanner. All figures converted from CLP to USD at the September 30, 2017 exchange rate of 637.93 CLP/USD. Figures in MM. 1) Assets, fully hedged. 2) Equity included in liabilities.

CLP. 40.0% UF. 28.7% USD. 22.1% CHF. 9.2% CLP 44.2% UF 24.5% USD 22.1% CHF 9.2%

ASSETS(1) LIABILITIES(2)

$126 $257 $123

2017 $220

$97

$126 2020 2019 2021 2018 +2021 $41 $257 $220

$170 $20 $134

$299

$49 $62 $54 $41

Others Commercial Paper Bonds Bank Loans

2015

8% 20% 24% 14% 61%

2014 $ 1,075

27%

$ 801

1% 6% 23% 5% 4% 3%

$ 1,008

61%

9M2017 2016

64%

$ 1,165

72%

SLIDE 13

ROAE(5) CURRENT RATIO(1) AND INTEREST COVERAGE(2)

FINANCIAL RATIOS

Source: Tanner. 1) Current Ratio defined as Current Assets / Current Liabilities. 2) Interest Coverage Ratio defined as (Profit Before Tax + Financial Expenses) / Financial Expenses. 3) Leverage defined as Total Liabilities / Total Equity. 4) Capitalization calculated as Total Equity / Total Assets. 5) ROAE defined as Annualized Net Income / Total Equity Average. 6) ROAA defined as Annualized Net Income / Total Assets Average.

ROAA(6) LEVERAGE(3) AND CAPITALIZATION(4)

2.3% 9M2017 2.2% 9M2016 2.2% 2016 2015 2.3% 2014 3.4% Average 2014-2017: 2.7%

1.8x 9M2017 2.1x 1.8x 9M2016 1.8x 2016 2.6x 1.7x 1.8x 2014 2.4x 1.8x 2015 1.5x Current Ratio Interest Coverage Ratio 3.0x 9M2016 0.2x 0.2x 2.7x 3.0x 2015 2.6x 3.1x 0.3x 2016 0.2x 0.3x 9M2017 2014 Capitalization Leverage 8.7% 9.2% 2016 2014 9M2016 8.8% 2015 8.6% 9M2017 12.1% Average 2014-2016: 10.0%

SLIDE 14

STRATEGY

14 OUR MODEL… …ALLOWS US

✓ INDUSTRY LEADERS IN THE SEGMENTS

WHERE WE OPERATE

✓ +80% OF SECURED LOANS ✓ LOW RISK AND RESILIENT BUSINESS MODEL

TO MARKET FLUCTUATIONS

✓ HIGH PROFITABILITY AND SIGNIFICANT

GROWTH HIGHLY COMMITTED SHAREHOLDERS

CLIENTS UNDERSERVED

BY COMMERCIAL BANKS

SPEED IS OF THE ESSENCE

DECISIONS IN < 30 MINUTES
AVAILABILITY 24/7

OPERATIONAL EXCELLENCE CONSERVATIVE BALANCE SHEET:

✓ LEVERAGE < 3.0 ✓ ACTIVE LIQUIDITY MANAGEMENT DURATION / FUNDING / CREDIT RATINGS

SLIDE 15

Contact Information:

María Gloria Timmermann Head of Investor Relations Huérfanos 863, 10th Floor, Santiago – Chile Operator: + 562 2674 7500 E-mail: maria.Timmermann@tanner.cl