Earnings report 1st quarter 2014 - Bupa.cl€¦ · 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

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

2

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.

6

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

7

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:

8

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