Inversiones La Construcción (ILC) Investor Day 2023 summary

Strategy and portfolio evolution

• Reached 9 million beneficiaries across health, pensions, banking and annuities, with a focus on an aging population.

• Pensions represented 94%–95% of the business in 2012–2016; diversification followed in 2017–2022 through acquisitions including Confuturo and Banco Internacional.

• The next three to four years shift to growth, particularly at Banco Internacional and Confuturo, despite a challenging domestic environment.

• Strategic pillars are growth, profitability, flexibility, a strong financial position and ESG; assets grew 15x and AUM more than 3x over the decade.

Financial performance and capital

• Recurrent earnings were CLP 60–70bn through 2016; results later grew sustainably, exceeded CLP 100bn and delivered 2.3x higher profits.

• Dividends exceeded the IPSA average each year; a shareholder investing at the 2012 IPO had recovered 80% of the investment through dividends.

• Balance-sheet resources included CLP 263bn in cash and around CLP 80bn in safe income, supporting growth and resilience.

• About CLP 1.5bn was redeployed over the years through divestments, dividends and subsidiary funding, without additional shareholder capital.

• Long-term group ambitions are CLP 130–180bn in profit and ~15% ROE, following prior phases with CLP 60–80bn and CLP 90–120bn profit ranges.

Business growth plans

• Future earnings mix is expected to move toward three broadly equal parts: health, annuities and pensions, and banking.

• Banco Internacional targets doubling loans and reaching CLP 85–100bn profit by 2027, with ~15% ROE; growth may require ~CLP 100bn of capital over three to four years.

• The bank aims to double its 2.5% market share in five years, while expanding retail lending toward 25% of its portfolio and continuing to develop its business-banking base.

• Confuturo targets around CLP 80bn profit and 13% long-term ROE; aging demographics support annuity growth, with the 65+ population projected to reach 26% by 2050 from 12% in 2012.

• RedSalud EBITDA reached CLP 70bn, a level previously expected for 2027–2028; the growth approach prioritizes outpatient care, early detection and operational efficiency.