RESULTS PRESENTATION SEPTEMBER 2017...Jan 01, 2017 · 2016 9M2017 13.5% 15.5% 13.9% 14.4% 2015...

RESULTS PRESENTATION

SEPTEMBER 2017

HIGHLIGHTS

2

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.

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 ProfitGross Margin

9M2016

$1,255

2014

$1,242

9M2017

$1,183

+16.7%

CAGR: +8.1%

$1,380

20162015

$1,073

MAIN

INDICATORS



NET PROFIT BREAKDOWN (9M2016 vs. 9M2017)

REVENUES

3

$140

9M2017

$226 +21.6%

$196

2014 9M20162015

$170

2016

$246

$5

$6$25

$27

SG&A9M2016

+7.8%

SubsidiariesOp. Margin without

Provisions

9M2017

$-5

Provisions and

Write-Offs

$-4

Taxes

$1

Against Profit In favor of Profit

BREAKDOWN BY TYPE OF CLIENT(2) 9M17

NET LOANS BREAKDOWN(1)

DIVERSIFICATION

TOTAL PORTFOLIO CONCENTRATION(3) 9M17

ECONOMIC SECTOR DISTRIBUTION(2) 9M17

4



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 ClientsTop 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 ManufacturingIndustry

Agriculture, Cattle Raising and ForestryConstruction6%

12%

Real Estate Businessand Rental Activities14%

Wholesale andRetail Trade

7%

Transportation, Storage and Communications

8%

3%Metal Manufacturing Industry

Education5%

3%

4%Others

Fishery

37%

33%

30%

85%

12%3%

% CLIENTS % PORTFOLIO

SMEs Large Enterprises Corporations

65

%

70

%

67

%

67

% 64

%



2) Yield defined as annualized income/average net 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 LendingLeasing

11.4% 11.8%11.9%

9M2016 9M2017

11.6%

20162015

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

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.


2) Market Share calculated as Tanner net loans over industry total portfolio, taking on consideration only institutions that appear in chart “Loans by Company”.


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

9M20172016

13.5%

15.5%14.4%13.9%

2015 9M2016

14.9%

2014

FACTORING

6

$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 ShareNet LoansClients

YIELD(3)

Institutions with figures as of Dec-16

Non-MetalManufacturing Industry

17%

5%

Real Estate Businessand Rental Activities

7%

Construction

4%

5%

Fishery

Education

Agriculture, Cattle Raisingand Forestry

Metal ManufacturingIndustry

Wholesaleand Retail Trade

Others

11%

4%

6%

24%

19%

Transporation, Storageand Communications




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

9M20172015

7

$321$293$299

$149

978971

1,261

2016

1,200

2015 9M2016

$392

2014 9M2017

Clients Net Loans

Agriculture, Cattle Raising

and Forestry

2%

Fishery

Wholesale and Retail Trade10%

4%

9%

8%

Finance Services

5%

Education

Construction

Real Estate Business and Rental Activities

7%

52%Non-MetalManufacturing Industry

Others

4%





PRODUCT BREAKDOWN ECONOMIC SECTOR DISTRIBUTION 9M17

YIELD(2)

11.4%12.7%

9M2016 9M2017

14.7%

11.8%12.4%

2014 2015 2016

LEASING

8

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 ClientsReal Estate Machinery and Equipment

OthersMetal Manufacturing Industry

Hotels and Restaurants

3%Community Service Activities

3%

Agriculture, Cattle Raisingand Forestry

8%

11%

Construction

11%

Wholesale andRetail Trade

13%

6%

Real Estate Businessand Rental Activities

Finance Services

2%

25%

17%

Transporation, Storageand Communications


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.



3) Sales of new vehicles according to ANAC. Sales of used vehicles according to CAVEM.

INDUSTRY(3)

YIELD(2)

24.6%

9M20172016

25.3% 25.0%

2014 9M20162015

25.3%24.9%

$ 1.563

$ 466

$ 449

$ 205

9

49,70448,113 55,04148,883

2014 9M20162016

$336 $449

9M2017

49,610

$380 $364

2015

$339

Net LoansClients

348296306282338

972949877868

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

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


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

20162014 9M20179M2016

$10.8

+68.8%

$6.4

$4.7

$10.0

10

8.2%

$395

2014 2015 9M20162016

$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%

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%

20142013

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%

20162015

6.0%

2013

Corporate LoansLeasing

NON-PERFORMING

LOANS

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

Source: Tanner, other companies financial statements.


NPLs > 90 DAYS(1) – TANNER CONSOLIDATED

4.8%4.8%

20142013

5.5%

4.2%4.5%

2016

4.3%

2015 9M2016 9M2017

11

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

29,432,952,0

46,027,7

32,952,046,0

27,7Source: 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.

12

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)

LIA

BIL

ITIE

S(2

)

$126

$257

$123

2017

$220

$97

$126

20202019 20212018 +2021

$41

$257

$220

$170

$20

$134

$299

$49

$62

$54

$41

Others

Commercial Paper

Bonds

Bank Loans

8%

2015

8%20% 24%

14%

61%

2014

$ 1,075

27%

$ 8011%

6%

23%

5%

4%

3%$ 1,008

61%

9M20172016

64%

$ 1,165

72%

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%

20162015

2.3%

2014

3.4%

Average 2014-2017: 2.7%

13

1.8x

9M2017

2.1x 1.8x

9M2016

1.8x

2016

2.6x

1.7x1.8x

2014

2.4x

1.8x

2015

1.5x

Current Ratio Interest Coverage Ratio

3.0x

9M2016

0.2x0.2x

2.7x3.0x

2015

2.6x

3.1x

0.3x

2016

0.2x

0.3x

9M20172014

CapitalizationLeverage

8.7%9.2%

20162014 9M2016

8.8%

2015

8.6%

9M2017

12.1%

Average 2014-2016: 10.0%

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

Contact Information:

María Gloria Timmermann

Head of Investor Relations

Huérfanos 863, 10th Floor, Santiago – Chile

Operator: + 562 2674 7500

E-mail: [email protected]

RESULTS PRESENTATION SEPTEMBER 2017...Jan 01, 2017 · 2016 9M2017 13.5% 15.5% 13.9% 14.4% 2015...

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Transcript of RESULTS PRESENTATION SEPTEMBER 2017...Jan 01, 2017 · 2016 9M2017 13.5% 15.5% 13.9% 14.4% 2015...