Inversiones La Construcción S.A. (ILC) Earnings Call Transcript & Summary

[Audio Gap] [Interpreted] Financial Sector, specifically Banco Internacional and Confuturo Insurance Company. So I will show you a presentation. Agenda for today, we have the ILC Investor Day, we will have also Mario Chamorro for Banco Internacional, then a break, then Christian Abello from Confuturo, and then we will have some 40 minutes for Q&A session and closing remarks. So getting into the agenda, what we will focus on today is the consistency over time, despite a difficult context for the country and for some of the industry we operate in. We will also be talking about the strategy. We will zoom in, as I said before, with Mario and Christian on the financial businesses, and then we will have some closing remarks. So today in a nutshell, we are a group that reaches 9 million beneficiaries. We are focused on the aging population in pensions and health, especially through 4 industries that you very well know, health, pension, banking and annuities. And we operate with 5 strategic pillars that we will be addressing in detail. These are growth profitability, flexibility and a strong financial position, especially operating based on ESG principles and strategies that I will also be addressing. So this outlook is probably the second or third slide of the same meeting 10 years ago. What we promise leadership in the industries we were operating in. We promise financial soundness and cash flow generation. So these were -- this was a proposal 10 years ago. Of course, we've honored this proposal more than honored it. But let me remind you what we committed to. And when we divide this 10 or 11 years into stages, there is a first stage that was between 2012, 2016 when we came public, this was a business focused on pensions and 94%, 95% came from there. So there was a challenge of diversifying ourselves and also cleaning some other minor businesses like the [ dot-coms ] or [ vocational ] business and focus on larger scale and more growing businesses that was done between 2017 and 2022, we acquired 2 companies Confuturo and Banco Internacional. The first one was called CorpVida previously. We also developed -- or we were capable in fact, of reinventing ourselves in some of the existing businesses. And same thing in pension business, which is more recent, and I will later talk to you about. And for the next 3 or 4 years, we just have to grow, grow despite the context. And that growth focus and bed is on Banco Internacional and Confuturo. Another perspective to compare it with 10 years ago, which shows the magnitude of what we've done is to see some metrics in terms of balance sheet that illustrate this change assets. We've grown 15x in assets in the last few years. The asset under management, we've also grown more than 3x. Our equities have also grown. Our beneficiaries have also increase. Our industries, now we operate in 2 industries, and we have 40% more of employees. So what we've achieved during this 10 years from the growth point of view, has been really remarkable, and it has had unique characteristics that we will show you later. So despite our context, as I was just saying, we've been able to deliver. And this context when you set hard data, Chile, is not what it used to be. If you see up there on the right, Chile used to be a country that was growing much more than the rest of the world during the '90s, during the '80s, during the year 2000. And it stopped growing during the last decade. Chile was a country with a very remarkable characteristic for a low public indebtedness. If you see the peak here on the left, the lower part on the left against other OECD countries until '09, it had a low public debt, and now we are reaching almost 40% of the GDP. And as for economic uncertainty, we are also being used to an environment setting until 2019 of low uncertainty. This index is always close to 100. And then you could have some lips with an international crisis, but they were not attributable to an internal context or a domestic context. But now for 4 years, this index has been above 100. And even though in the last few months, it has gone down, it continues to be in never seen uncertainty levels. We've also experienced in the last 4 years some slow changes by the end of 2019. We will remember what happened, then we had the pandemic, the withdrawals, we had a constitutional process, presidential elections and political environment, it was not good at all. The social priorities have been changing in 2019 in pensions and health were the 2 first ones. You can see that and how now it changed to delinquency and inflation, especially those of us who are not so old, we thought it was not going to be a concern for us in our country. So there have been so many changes in a very short time. And this is a summary for each of the industries. Pensions, we had a pension reform at the end of [indiscernible] administration where we had a new universal guaranteed pension, the largest change in the last 20 years, but this was not promoted that way. It was just -- it just went through. In terms of annuities, there is a new product, which is more competitive, which is the scale annuity that has also generated an important change in the industry in the last few months. In the banking sector, we are doing the Basel III regulation. In the health sector, there have been more structural reforms as one that has almost been passed, which was the creation of a universal health plan, which is still in Senate. And today, we have [indiscernible] crisis as well. Within that outlook, the result delivery has been consistent to what we promised. We talked until 2016 of a consolidation stage. The company generated between CLP 60 billion and CLP 70 billion recurrent and what we've seen in the last 6 or 7 years has been a sustained growth. We always talk about the fact of having a sustained growth in different years. But this is a company that has already gone over the CLP 100 billion threshold. And when you see a return on -- the return, we can see this 2.3x increase in profits. So it is not balanced. It's rather between 13%, 15%. But despite all of this context and despite industries that are quite complex, we've been able to deliver to our shareholders in terms of results, not just the yield the result, but also the dividend yield. This showed the dividend per share of ILC since its opening. And you can see here in percentage, the dividend yield year after year in green. You can also see the reference. So the -- its average dividend. So every year, our dividend has been greater. So if there is a shareholder that entering 2012, they've already recovered 80% of their investments. So we believe that this also illustrates that of the IPO when we started, and we've honored the cash flow delivery. How have we been able to achieve all of this? Well, based on a strategy with 5 pillars. The first one is growth. This growth pillar, you can address that in 2 ways, organic and inorganic growth. The organic growth -- and shows many figures of industries we operate in. This reflects the potential and the bases that are still intact. If you see the AUM you can see between 2012 and 2019. Why 2019 because it's right before withdrawal, this industry increased at 11% annually. Then we have the distortion of withdrawal, so that which, of course, makes the 10% become 6.8%. And here on the right, when you see the amount of formal employees and how it's grown, you can see that there is a 9% growth. So in organic terms, despite the affiliates -- despite this is an industry that continues to mature, the AFP industry is still attractive. When we talk about annuities, the same thing happens. If you check this from the AUM life insurance company, annuity, which is the growth of annuity. You see that the growth rate has been over 9% despite withdrawals, despite times when annuities were not very much preferred. This was during the pandemic. And when you see the aging population between 2012 and 2050, that is to say when we started less than 40 years ago. The amount of people that are over 65 is multiplied by 3, and you can see here in the chart. As for banking, when you talk about placements in long series, we also have a 9% growth, the penetration of the banking sector in Chile is quite high. It's quite similar to the OECD countries. So to summarize, from the organic point of view, these are industries that show great potential. In terms of health, exactly the same thing happens despite difficulties and despite the complexities the times we have to experience. When you see the metrics of expenditure, health expenditure, Chile, I mean after the -- during the pandemic, this was measured until 2019. But this is an industry that is growing 10% per year. And you can continue to include different parameters in this metric, and you will get to the same conclusion. From the inorganic point of view, we've also made our most -- since the IPO, we've made successful acquisitions, the most relevant one, Confuturo and Banco Internacional, we believe that at very attractive multiples and values also from Confuturo, we've done replanning of asset allocation and probably the most emblematic thing was the acquisition of [indiscernible] in 2016. For you to have an idea, the cap rates for those assets represented 240 split points over the sale rate. We are talking about 130 points more or less. So this allowed us due to large size of assets to add a lot of value to the company. We bought a pension company in Colombia with this fund by the end of 2019. This is the third market for Habitat. We also recently acquired [ 2 ] routes in Chile and Peru with the idea of empowering the nonmandatory business. I will talk about this later. And we've also taken control of Autofin, an automotive company. So apart from the organic growth, we've also taken inorganic positions that allowed us to enhance our growth even further. So this chart here is very interesting. It shows the distortions we have sometimes have with pre-2019 story. When you see the industry and when we see the CAGR, in pensions, annuity, banking and health sectors. And you see the growth rates during the '90s, during the year 2000. These rates were higher than the current one except in the case of health, which is something different because expenses always go up. So when you talked about double digit until 2019, this was in a country context, which was quite different a country that was growing double the rate during the '90s and a country that was growing by 70% more during the 2000. So when you see 6.8 to 9.2, 9.0, 10.4 then you need to take it to the context of the country that is not growing at the same rate. It grows at a 2% rate. So again, this is a relative attractiveness, which is still present in this industry. The second pillar of the strategy, profitability. And we've also done this in existing assets and acquirers in existing assets, [indiscernible] headache until 2019, more or less. It was really hard for us to get [indiscernible] margin metrics similar to those of the market. And we've been able to do so through the strategy that was hard to implement. It took us a lot of effort that is now being implemented in Confuturo. [indiscernible] will be talking about what we did until now, but it has been enormous in the last 6, 7 years since its acquisition. We've been able to move 20% of the portfolio, $2 billion in order to move to $2 billion in a portfolio, you need to analyze 15 billion opportunities. Hyper-efficient company. I don't want to talk about this because they will be addressing Banco Internacional. The same thing we acquired a bank that was nonexistent. It had 0 results at a fuse strategy, and we've managed to turn it all over around Colombia, this is something different in terms of development, but we already see some light at the end of the tunnel. Also a company that was undermanaged and it was not focused on pensions. All of this was done with our own resources. We have not asked for any money to shareholders. We've moved around $1.5 billion during these years. And you can see here the use of funds where we have the funds coming from investment -- sorry, divestment. One was selling part of Habitat also dividends received. And where have these resources be used with paid down dividends, if you see this, there's kind of a similarity. We've also increased our capital in our subsidiaries in order to finance [ crisis ] and capital, and we've made mergers and acquisitions. So this does not really fit because there is also a payment of interest in 10 years. But this is for you to have an idea how resources moved around. And we've done it without asking for any additional resources to investors. When you see and compare it to any other financial group that is similar to us, all of them increased the capital over 2 years. And when you see the history of many of those groups, the net in the increase of dividend is 0. So I'm not exaggerating here. You can check it around. Now the third pillar is flexibility. This slide makes us very proud because much of what we have been looking for in these 10 years, is this to get some distance from the concentration that we had when we issued the IPO the most of them directly, Christian, Rodriguez and me. He used to talk about this 96% of the business was an AFP pension. Private pension fund manager. And when we take a look at the figures of last year, AFP represents 25% of the country. And then we see that the health sector, the pension sector and the financial sectors are stronger. So we've been able to diversify our matrix, thanks to our income sources. So we have prepared ourselves for regulatory changes. 10 years ago, we created a health insurance company and the same for the AFP. So we are working very hard to open up to savings products that are not mandatory for that. we restructured ourselves, we divided Habitat in 2 and in the international field. And then with Confuturo, you will see how we are prepared. So when we take a look at these presentations, we can take a look at the benchmark figures. And of course, we see some differences, but the approach that we have taken is the right one. The map that you can see here includes all the fintechs that operate in Chile of different types and sorts. We decided not to allocate dozens of million dollars into this world, but rather develop businesses and by solutions. So we chose road not to co-invest and not to believe that we are a venture capital company because we are not one. Confuturo was the first business that achieved an annuity milestone. And the same for individual products. In Red Salud, we made changes to the core systems, here's an ERP. We have a powerful partnership with Google that includes initiatives for big data use. We can produce and have the red relationship to clients to patients. In telemedicine, we have thousands of monthly consultations through telemedicine with a simple solution. We also have a patient portal, which sometimes works better than any physical clinic. We've enrolled lots of people. Some 13,000 people. And for Banco Internacional, we are going to listen to the presentation, but we've worked with the core system with digital and self services, digital solutions. We need to work harder on mobile app, but not having a tech T-shirt does not mean that we cannot compete appropriately with our peers. In relation to financial position, as you can see, we have focused on strengthening our balance sheet and our financial structure. You can see here that in 2012, we had access to domestic banks. We had some bonds placed in the local market. We didn't do anything in the American debt market, nothing in the private market in Chile. And today, we don't have bank loans. We have a clean local stores. We've got to have 11 million [ UEFs ] and we've been able to reduce, but we are also cleaning that financial source, and we were able to place a bond in 2022. And we were very fortunate in the timing because that bond was able to refinance the needs of the organization for the following 7 years. We had plus $5 rate, and it was very, very successful. And after having done the 144A, we were able to open up the door to the private debt financing and we also have to go through the American market, something that we've already done. We have a local rating, international rating, too. And we were able to have, at present that has complexities, but quite good on the right side of the balance sheet. We have CLP 263 billion in the cash. Most of that comes from the 144A bonds and also the possibility of financing the growth for next year. And then we have around $80 billion in safe income. And then we have a difference between the received dividends and the paid dividend. So this has been a surplus that we've been able to have as cash that allowed us to confront potential difficult scenarios. So on the left, we have a good profile and on the right, which would be the future, we are well prepared. Finally, ESG, this is an organization that from the very beginning, from its DNA ESG has been a concept that has always been present in our actions. Now let me try to explain what we mean with this slide. This is a map that includes all these solutions, all the indicators, certifications and metrics in relation to ESG. So we've been selective. So we've been able to be selective as to what tools to have to measure ourselves. We developed a journey, and this was effective since 2012, we started slowly in Stage 1, but then we moved on to ESG compliance. And over time, we've been able to develop a robust and clear strategy. With the compliance metrics, so on and so forth, reaching the peak of the pyramid to be distinctive to operate under a robust DSG scheme. So some of the metrics for you to see, we have 2 main thermometers. One is the sustainable -- Dow Jones Sustainability Index that for the sixth year in a row, together with 24 Chilean companies, we are part of it. So you can see how we've been improving in our percentage. So 50% in particular since 2018. And today, we are in percentile 98 globally, not Chile. So we are there, right there to be a good, sustainable company. And for the SS index that measures ESG in partners, clients, we've been going up consistently. This is the aggregated figure for all ILC businesses. So as you can see, we are working very hard. Christian is going to talk about this next in way of investing, in the way of working in our portfolio. We've also implemented some inclusion programs in health, in the aging sector, we launched our commitment program. Today, we get to 1 out of 3 people over 60. We get to 1 million people over 60. So they are with us. So we can make a difference with that age group through our businesses. And we have had a very active role in public debate in the industries where we operate. And it is, of course, our idea to be present. So this is a sustainability model that is composed of 6 pillars very much consolidated. It has a good governance structure. This is very important. All our subsidiaries have sustainability committees. There is a clear 4 pillar strategy here. We are partnered with global organizations that allow us to understand the metrics and the benchmarks. As I said, we had 2 in particular. In terms of reporting for the past 10 years, we've been working very hard on this pillar, and we have a specific social commitment to the elderly population. Our purpose is crystal clear. It has always been part of the DNA of the company. And now we formalize it. We want to be leaders in the construction of social and economic value that improves people's quality of life. Actually, we are in the middle of meetings with our subsidiaries and this is a good way to put the house in order in terms of values. We need to structure it, we need to promote it and drive it more strongly. So this has been a high-level presentation of our performance so far. And as I said before and moving on to what's next. We are seeing this future, which is very promising. This is a slide that shows the target of our results. So we thought that 1/4 of our results could come from our income sources. However, this slide or this map is changing and is going to be like this in the future. We are annuities, pensions and bank account for 1/3 and 1/3. And health is 1/3. So annuities and banking are showing grower -- sorry, higher growing trends. So this is what we are seeing. We are moving to a pie that has 3 similar parts with one part of relative importance. So let me tell you a few things about the bank, so that Mario can take the floor. We joined in 2015 and then we increased our share to reach 67%. And it has 4 simple metrics. The bank gets loans at 4x. It has reduced very deeply. Its risk expense from 39% to 12%, and it has substantially improved its efficiency. So here, we see what the bank looked like when we acquired it, 66% of risk expenses. So we had a negative margin. And in all metrics that we look at, we are the market leader today. So we have grown, as you can see on the chart at the top, the blue line versus the industry. Then during the pandemic, things sort of equaled and we took some distance in the past 9 months. We are still a small bank, so we are more flexible in certain terms. But our strategy is to grow at a very high rate, higher than the industry. We have doubled our factors. Mario is going to talk about consumers, even though at the very beginning, our focus was on SMEs, consumers is also a good business. So we are taking some actions to increase the consumer sector. But we are still part of a concentrated industry, where only 6 banks have a large size of the market. So when we made a map of our model, I could say that we are a specialized bank. We want to be universal knowing that we need to focus on a niche. We are small or medium-sized, and this is the place where we want to grow. What about the future? We want to do more of the same in a better way. We want to double the size of the bank. We want to have a bank worth CLP 85 billion, CLP 100 billion in profit. So we need to put our capital here in many aspects. This growth has a capital contribution of around CLP 100 billion in 3, 4 years, and this is something that we can assume. And with this surplus of dividends that we had we are more than prepared to pay this out. This is a scale that we can bear perfectly. On the annuities side, we purchased the company in late 2013, then we increased our properties in 2016. This is a business that has doubled it's AUMs. And in terms of results, even though the map of 2013, when we acquired it, is a little bit confusing because this was a very volatile business. It had its good and bad years. So we stabilized the business and now we have recurring results consistently 2021, 2022 were very good years. If we take a look at the future, considering the aging of the population and the higher demand in terms of pensions, we see growth. We see an industry where being a [indiscernible] provides scale and that scale is an advantage. So when we see this spectrum a long time -- this spread a long time, we've been able to attain higher spreads without taking so much risk. So our model is more conservative and it follows that logic. What do we see in 2027. We are seeing a company with profits around 13%, 14%. And a company that was in the game of the CLP 40 billion, CLP 50 billion, we are seeing it in the game of the CLP 70 million, CLP 80 billion profit. A robust company with a more profitable portfolio. What happens in the pension industry, you know that the pension fund industry in Chile is a mature industry. You can see the figures decade after decade, there has been a downward trend. So this is an industry that is at a more mature stage. And on the Q perspective, the number of affiliates has been growing at lower rates. So we faced an informality challenge. I would say this has gone down. We hope that this trend changes. But on the Q side, the industry is very mature. There is a reform along the way that was submitted to parliament last year, and I could talk about the reform for long, but maybe that's 2 most important aspects include that the reform fails to recognize that pensions were improved by 40%. In some segments, pensions were improved by 70%. So beyond the valid discussion about the amount of the pension and the dignity that they deserve from the replacement rate perspective today, we are on average. A second element that the reform fails to take is the definition of this replacement rate. Probably you saw the [indiscernible] report with pensioner data. As he said it very simply, the replacement range should be calculated based on the liquid salary of the person. And that will improve the replacement rate by 20%. Some people consider these as the pension based on the last salary or based on the best 10 years, based on the work in life. And then a second question is, have we considered all months or just the months that the person contributed? So there are like 3 or 4 replacement rates. So the numbers based on which the reform proposals were not the right ones. So I believe that there is an origin problem of this reform, a reform that did not consider that we were spending more than in 2018. And it didn't consider that the universal benefit as the name says, it's universal. So there are 900,000 people that did not get anything from the state. So by failing to recognize that, and you see how pension is a topic that declined in terms of priorities due to the PGU. So why -- why were they willing to accept a reform where one part would go to the individual account and the other part to the state account. Well, in the meantime, we have the largest pension reform of the country. So I think that is the heart of the discussion. And it's not easy to solve because again, if -- when submitting this bill, the government continues thinking based on the a replacement rate based on the last salary, it will be very hard to move on. But I always say the same thing in reforms like this, you can never confirm that everything will happen or nothing will happen. We will follow the political times. So from the size point of view, what do we have in these 3 companies, we are the second player of the Andean region. We managed $65 million and we have around 5 million members or affiliates different strategies in various countries. One was an acquisition, in the case of Colombia. The other one was a greenfield. In the case of Peru, we won the affiliates in the year, but each of this company has its own plan and its own challenges. Chile is a very stable company, it's an important cash flow generator. And though it is not accessing the organic growth so much because the nature in this case is that the one that is awarded [indiscernible] is the one that has the organic growth. Our commissions, our fees are on taxable profit. So the number of clients might be deteriorated by the -- this other factor has improved much more than the rest of the industry in the Peru and Colombia. Peru, this is around $10 million, $13 million company. We invested $30 million. That was the overall investment. And Peru has its own challenges because with the reform very recently that people withdraw 95% of the funds at retirement age. This is a system of saving. So 90% of the people that are in retirement age in Peru, they will draw their funds and they don't take a pension. So this is rather a saving system. In the case of Colombia, this is similar to the Chilean system, but the difference is that it's until like the Chilean system until 2010. So the risk of this insurance is included here. And large part of that, due to the specific knowledge of the group in that sense, has been to reduce the amount of accidents here. So it's been difficult because the insurance market in Colombia is less deep than that in Chile. And in the middle, there was a pandemic that really created a lot of shock in this case. But we've just opened bidding. We've obtained a reduction that will generate many millions of dollars in terms of margin. Another important aspect and we've also been developing in the voluntary or non provisional saving world. we are going to operate, and we are operating with Prudential in Chile and also in Peru and Colombia. This is not necessary because the AFP regulation allows for the distribution of this type of instruments. And this is a defensive move, let's say, there is no expectation in the short term that this unit will generate great results. You see the results of AGF in the market, and you realize that it's nothing easy, especially when you start from scratch. But in structural terms and in the long run, we see this as a complement, the rotation rates continues to be the same, those who can do this will have to take voluntary products because you won't reach the replacement rate, especially in those segments that are not subject to PGU and you cannot do that. And the fourth market is something permanent, something that you assess, but in Peru, it took 4 years to get in there in Colombia [indiscernible]. So it was the right time at the right moment, but this is something that is still in our minds. In terms of health, despite the size of the crisis and the health insurance sector, the foundation continues to be more or less the same demographic, continues to do its work, also technology, the public sector no matter how hard it tries it has some structural problems that it makes it enable to support the growing demand. And we've seen how the industry CapEx has reduced drastically. I remember at the beginning of 2010, we were all double -- I said all of us, we almost tripled the amount of bids in 5, 6 years. So we were all following the same path, but we don't see that nowadays. We see marginal investments, investments in equipment. We have [indiscernible] clinic in there, but we see that the installed capacity of the system will begin to become more restricted, so to speak. From the regulatory risk point of view, especially in the insurance aspect. There have been 3 [indiscernible] in the Supreme Court [ that ] had gone over -- against all principles. It has gone against the civil code and despite regulatory solutions that are legal solutions, the Supreme Court does not like them. And this takes us to limit situation where either we have a short law that gives some sustainability to the system or else -- and in the full system or else the system will collapse. Now how have we've been preparing for this? Because I'm not telling you anything new. This has just written papers in the morning. But how are we getting ready to do this? First, we have 3 quite sound companies. If we talk about the insurance sector, and this is relevant because it shows the change from the radical change in the insurance company, this becomes a public insurance. We are quite prepared for that. And proof of that is the chart that I'm showing you here. It shows the whole population that has been insured since 2014, 'til date in dark blue, those insured with complementary insurance and the other [indiscernible]. We have the same amount of insured people and beneficiaries. But you can see that the complementary are half and [indiscernible] also half. So if you see 10 years backwards, it was 20%, those that were insured in the complementary modality. And 80% under [indiscernible]. So if there is a change of structural model that enhances the complementary ones, we are there. This is a company ranks 3 and now is increasing the number of beneficiaries in terms of health. So from the standpoint of offering insurance solutions for this population, we are very well prepared to do that. From the foundations point of view, demand continues to grow. And this has been seen everywhere in terms of technology growth in population. So the demand over health increases. And you can see some figures here in the industry, medical consultation, 2x, exams 2.2, surgical interventions, almost 2x, and this won't change in Chile due to the insurance modality. In terms of the professionals, health care professionals, it was difficult. But in 2015, we made a deep change in our strategy and our management, and we focus on consolidating a network. That network started with the basics, focusing on acquisitions and basic policies, but it also added value to its operation in time. And an example, and I mentioned this before, we had 19 brands. Today, we have one. We have 23 call centers. Today, we have one. We had 15 or 16 websites. Today, we only have one. We used to have various remuneration policies, and that's all over. And today, we are running in a better stage, which is adding value, managing data, thinking about solutions for the whole network and implementing those solutions, and we are getting into the medical model as we call it. So we need more efficiency with stringent protocols with solutions for beneficiaries with a known cost. What has happened with the results, what you see down there. EBITDA is around CLP 40 billion. And that has changed to CLP 70 billion. Today, we are in the EBITDA level that we wanted to have probably for 2027 and 2028. The post-pandemic era helped us a lot because public insurance began to try our networks as a result of the pandemic, and they remain there. I'll show this later on in a different chart. And this change in EBITDA, which is almost 2x, it was the same structure. So the infrastructure that we did not have -- that was not really mature now brings us this result. And as I said before, what you see here on the left is the proportionate patients that enter or join our network by insurers. So we have the private insurer -- insurance. It's the darker bar. You can see here the percentages, 13%. And today, it represents over almost 40%. And the public insurance, FONASA, represented 29% and today is almost 40% and still growing. So this is in a more -- this is a scenario where most of them are in FONASA. Almost all of us should be there. This network knows how to work with those rates. There is no private network in Chile where the 40% are FONASA. And this has to do with our purpose. It has to do with our DNA. But in the current situation, this also help us. Another thing that helps us is that we have diversified income, both in terms of geography. We have 20% almost of our EBITDA coming from regional hospitals. And these are completely different realities to those of Santiago-specific markets with very marked characteristics, also 39% coming from clinics in Santiago and other 24% from outpatients and dental centers. These latter have no latent risk because copayment is lower. So both in terms of the insurer side and the professional and health care provider side, we are quite well prepared. Another thing that we've done, we've just signed an alliance with Cleveland Clinic. This is a strategic alliance not in terms of property, but what we are aiming at with this is, well, this has been recognized as the one of the most important ones in the world due to the quality of the medicine they render. And also it's not that big because its privilege and it has focused on the essence. And we have a partnership with them in order to import know-how in terms of experience in patient and customer evaluation in medical protocol, in neurosurgery, in cardiology, and they chose us. And they liked our approach. Why? Because we have a quality approach, a coverage approach. We don't spend more than 1 point of EBITDA in quality and a series of acknowledgments that we've been awarded with our service today is of excellence. If you go to Red Salud Providencia or in the Red Salud and Serena Medical Center, the experience is increasingly more homogeneous. This is always managed with metrics and numbers not like it was 7 or 8 years ago. So to summarize on the health care provider side, we continue to see an organic growth. We continue to consolidate the network. We have a cost structure and a pricing strategy that allow us to be efficient. We are developing partnerships as the one I mentioned with Cleveland Clinic. Data is really impressive. We have 600,000 appointment, 300 routes that visit us every year. So this massive data management allow us to better manage all of these and provide a better experience to our patients. And as I was saying, we have this flexibility of adapting to regulatory changes coming in the future. Having said that, I now give the floor to those who generate the dividend, Mario and Christian.

I will talk to you about the story of Banco Internacional. Since it was acquired by ILC, this has been a growth-focused, fast-moving, healthy and efficient bank. But we are creditworthy, and we are efficient. The agenda for today begins by addressing our track record in the last 8 years already. And we will be talking a little bit more about the efficiency of the bank, the creditworthiness. And then we will focus on the two segments that we cover. This was previously a company bank. And 3% of that in 2015 was retail, and now it's changed a bit, the composition. So today, it's interesting to tell you what we are doing from the standpoint of individuals. And of course, we're also part of the ESG approach. And finally, I will give some closing remarks. So at a glance, in a very simple glance, the bank in October was a bank of 1 point -- sorry, CLP 5.1 billion in assets. And you can see the return over average capital of 16%. You can see here the loans and the share -- market share of 2.5%. Here, we excluded the CI and outside of Chile in local market. We have three subsidiaries since 2018. One is AGF and an insurance broker. And the most relevant thing has been the acquisition of Autofin. We have 51% of share, and it allows us to get into the inorganic way to the retail area, something that we've been offered for a long time. You can see our ratings here, internationally speaking, Standard & Poor's Global and Fitch and in local terms, [indiscernible] and ECR, respectively. When we welcome those who arrive at the bank, we began with this circle, something that we've been trying to do ever since ILC takes control of Banco Internacional. This is to show results, understanding bottom line, a greater growth and also improving our risk rating. And I will talk later on why this is so relevant. Today, what we started with some that gave a lot of advantage to the market. And in order to improve our ratings, we have two things that we believe are quite relevant: a greater fund and a cheaper one. If we do that, we'll be able to get to better quality clients. And as a consequence, our results will improve. And when that happens and the growth of the bank also improves, we believe that as we do it the right way, this also help us obtain better results in the rating, in the risk rating. And we get into this virtual circle, and this is what happened until now. This slide shows the bank behavior in two important variables in terms of growth and results. So we are talking about the concept of flexibility. If you see the portfolio up until 2019, it was above the level, the market level. And in 2022, we got closer to the market. Of course, an occasion of all the developments of that time. And in 2023, well, we were growing faster. So this is a scenario that accounts for this turnaround that we have been going through. I can remember that we were at the bank one day, and we made a presentation of saying where our opportunities were. And we even used a comics martian, an alien. And we said, this is an alien that doesn't know Chile. So today, we have imbalances in two relevant aspects: first, the risk of the portfolio; and second, a lower efficiency. So if we were able to solve that, if we were able to fix those two issues, what would be the size of the market? So we said in 2015, the market had a result of 0. And if with the same size we achieve the metrics of the industry, we should be in results around CLP 9 billion and CLP 10 billion. And that was to what extent or how long should we wait until we get this improvement in metrics. And so we said, let's take 3 years, 2018. And at the end of that year, we could be in line with the industry. But one thing is to say it, a different thing is to do it. We were able to get to that level. It was a by-the-book recipe. So we designed a strategy for the bank. We maintained it, and we finally got to that point. So we made a significant change in the structure of the bank collaborators. So we had around 800, and we used to be 500. That now 850, 90% is new. 90% of these partners arrived after I arrived the bank. So thanks to bringing specialists to the table, thanks to identifying and focusing on the pros and cons of the strategy we wanted to develop, we were able to grow the bank during this time. So it was maybe a traditional strategy by the book, but that has given us good results so far. So as I said, 2016, 2018, those were the 3 years where we are thought about getting to the standards of the industry. And as you can see here, CLP 12 billion approximately in 2017. This is what we expected when we go to the bank for the first time. So we've always thought about developing a bank that could offer value that could offer strategy. And the more successful banks have, in general, predictable results, a good logic, a good diversification strategy and diversification as a core pillar. So we think about the retail world and the acquisition of Autofin. So we went from 3% in 2016 to 28% in 2023. That was a correct way to diversify ourselves. Our growth numbers, you can see them. In terms of loans, we've grown in 2016 4 or 5x as you can see. So one way or other, this was really at scale. Everything that has to do with the regulations from Basel creates some sort of workload that is quite fixed depending on the market size. So this is a world where scales are very hard to get. So the results, the results are here. But if we compare this with 2015, we don't have any results. So we've been gradually improving this. In relation to the health and creditworthiness of the bank, we have seen growth between -- 3.6x between 2016 and today. And according to Basel III requirements, we have also some room to grow, reaching CLP 15.6 billion in October this year. So to that today, we are fulfilling our expectations, and we are fulfilling the creditworthiness under the requirement. In terms of liquidity, in a world of pandemic and social turmoil, we have seen together with the Board and the management team to take a conservative liquidity position. Even so, the liquidity indicators that are relevant to the industry, LCR of around 300% with a minimum of 100% and the net stable funding ratio, the NSFR also around 105%. The minimum requirement is 70%, but this is an indicator whose minimum requirement goes up and up. And it will be 100% probably in 2026. This is very relevant in terms of Basel requirements. Now from a benchmark perspective, as we can see on the chart, our liquidity indicator, the LCR is actually among the best of the industry, and the NSFR benchmark is in the middle of the chart. So what we mean is that our bank has always been very careful in terms of liquidity, and this is plain to see on these charts. In relation to risk indicators for the prudent policies, this is easy to recover actually. So in one way or other, this reflects the banks, and we measure this for the industry. They forecast or provisions based on loans around 9% in an industry that is really in a 2.4% average, but we've been going down significantly. And we have a collateral loan ratio that is high, 76.3, actually one of the highest of the industry, the highest whose characteristic is relevant and for the banks that are more focused on the business world. The second picture, the additional provisions benchmark and the collateral coverage benchmark as you can see, the provisions of our loans. If you take a look at the four banks that are part of this ranking, so it's the other banks as well, we are focused on the business world rather than the private customers, individuals. We see that there is a difference because the consumption is different. There is no collateral in that segment. So this accounts for that. This is a way in which we see these figures, considering the type of segment where we work. And in terms of additional provisions, well, we've had good provisions that equal 0.7% of the loans portfolio. And then we have the Estado Bank, the Chile Bank, and the other banks are more in line. So we have these additional provisions buffer, I would say compared to other indicators, which is very helpful for the solvency of the bank in relation to other things. In terms of other ways of measuring risk and provisions, we see the percentage growth operating revenues year-to-date. In October, we are at 15% in starting in '18 then 22% in 2019. There was a minus 4 bp. This is an indicator that in the industry has always been very stable and not necessarily following the economic cycle that there is a stable 22% range, as you can see from 2018 to the present. Of course, during the pandemic, we saw that it sort of escaped this trend. But today, post pandemic, it is going again into this 22%. We believe that a bank like ours should have these indicators like this because we have a very profound concern in terms of the business world. So this 14.7% as an indicator for similar banks is that for the [ BZ ] Bank. So the industry is at 22%, we are in 14%. And in terms of efficiency ratio, 60% in 2016, we now see its convergence to more industry levels of 45%. So a bank like ours considering the state it is at and the business where we go -- we work should be at around 50%. So we are good. Of course, we can use part of what we already have in order to drive growth, but probably this will improve. So we've had a relevant and important change in improving the efficiency, the operating efficiency of the bank. Improving the rating was very important to us because we are competitive, thanks to this. You can see that in 2015, when Banco Internacional was rated as A, but then in 2023, we are AA. And in the international market, we see that we are BBB+. So we have a very interesting profile. And you can tell when you meet with other bankers around the world, so the BBB+ feels very good of ourselves. But we, of course, know that this reflects what the bank is doing in terms of growth and creditworthiness. So this is an indicator that we really like, and we wanted to improve. We wanted to improve relevant results. So we have changed the asset structure, but let me share with you some of the changes that the liabilities have gone through. In late 2015, the bank was financed with wholesale deposits and issued loans at 30, 90 days. So it was a relevant risk, wholesale risk. We've been able to change our retail deposits. I'm going to share with you more about our products. Particularly the line deposits, we were able to improve the number of time deposits but also the number of clients. And the bank went back to the equity market. The bonds in 2015 were subordinated bonds issued well before that, that in 2018, we became a player in the bonds and banks and market again. So this means that we have these figures of our liability structure. As a result, there was a change in our rating, our bond spread. As you can see on the slide on the right, we have the spread that are -- well, this is very important for a 5-year bond and for the 6 months deposits. As you can see, the creditworthiness position and growth profile of the bank is very robust. Now let me share with you the world of commercial banking. Here, we have our market share in commercial loans. At industry level, we have 2.5%. And this figure has grown from 1% to 2.5% in 8 years, as you can see on the chart on this slide. It's important to note that when we see the credit committees or loans committees, we compete with the large banks, with the six largest banks. This is our competition base. So the challenge in our growth is to maintain a value proposition that makes it attractive for our clients, something that has occurred. But well, this is our Banco Internacional market share for you to see. So this is the distribution of the market share by segment. You can see the CMF information with CMF methodology and definition of terms. And in the world of corporate banking with loans over $20 billion -- $20 million, as you can see, we have most of the companies in that segment. And we have 0.9% of the market. Then we have the mega companies that have loans from $12 million to $20 million. So we have 4% in that segment. So it is true that, that 4% can be improved. There is a feeling that we still have some space in the corporate segment and in the small segment. So as was expected, the bank, well, as we know in the middle, large and mega segments has been like this. So we have room to grow 2.5% of the market. So in positive terms, we have 97.5% ahead to win. So this is an optimistic view of the story. Now how can we cover these segments? We have a corporate management. We have the big businesses management, middle and small size management. We know that these type of companies require different methodologies, different approaches according to their segments. And the strategies for each segment are different. So for corporate, for example, we participated in trade unions. We've offered some interesting activities for this segment. We have offered specialization and diversification by industry. And that has allowed us to be part of certain loans in syndication. So maybe 4, 5 years ago, this was unthinkable for the bank. And then in the next segment, large businesses in real estate, this is a segment. And it's important to clarify that in real estate, we have a limit. We cannot have loans above the equity, the effective equity of the bank. So everything that the CMS, things that must be, of course, complied. They set a limit on us. So I can absolutely reveal this. Well, this is something that we need to be, of course, under that limit, under the effective equity of the company. And also in this segment, we have gained some specialization by industry. We've been able to grow beyond the expectation. And finally, the businesses segment. This is where the bank was in 2015 a more factory level, let's say, access clients. After our intel areas are able to identify eligible clients, the executives operate based on a sort of factory approach. They call our clients. It's like a machine approach compared to the bigger segments just to accommodate their needs. So as you see, we have these three commercial divisions targeting at three different types of businesses. Each has different conditions, different structures. And this is part fortunate what has allowed us to grow as we have in the past years. What is the value proposition? We have all products that exist in the industry with all of its functionality. So we have all of the products and all functionalities as in the rest of the industry. Remember that this is quite a well-regulated industry, and you can do whatever is written under the law. What is not under the law cannot be done. So this is a way to look the legislative settings of the different countries. But we've also made great development because we believe that these are significant for the segment that we attack, which are the -- which is the business world in terms of FOGAPE, [indiscernible], all of the guarantee programs implemented by the government. We've developed an area where we have all of them. We believe that we are the only ones with all of these implemented guarantee programs, and it also give us very good results. We've grown, and you can see here the numbers, 200% in 3 years. And the accident indicators, those where we have had to collect, the R&D have been quite low, 1.8% in 2020, 2.5% in 2021. And in 2022, it has been practically 0. So this is also a product that is quite relevant for the business segment that we'd like to support. We've been going forward with self-service. When you think about the business world, what you might think customers might like in terms of technological breakthrough, probably self-service. And here, there are many things that they already have online in order to meet all of their financial needs. And we are improving our productivity also by generating the pre or the back office. In the automation. Credits, we also have online documentation and also automated credit application that really improves productivity, and we can deliver in a faster manner our products to customers. So we complemented the product offer. We have all the products that we need for these clients. We've made a specialization in state guarantees that have been quite important in the last few years, and we've been also making progress in the automation and technological world. Here, I would like to show you a video, quite brief video of some of the things that we have. [Presentation]

So that is what we are doing in terms of automation and making the most of all tech advantages in the business world. As I was saying, our vision is to be more efficient and more [ appellant ] in as long as our customers can be better self-serve. This is not any company. We only have those that already have an offer and our clients that have gone through all the credit processes of the bank. Today, we have 2.5%. And we would like, of course, to double that number in 5 years. We do believe we have the conditions to do so. We have the team, the willingness and of course, the support of our shareholders in placing the necessary equity in whenever we needed it to make the bank grow. So we believe that everything I said are challenges that we always find clients in larger banks. But until now, we've been able to have a value proposition that makes us attractive for our customers. So originally speaking, as I said a while ago, the bank was 97%, business, 3% individuals. And we said, let's have kind of a runoff of those 6 billion consumption credit that we had at the very beginning to minimize that because the quality of the portfolio was not that good. And let's see if we have some other opportunities in the world in order to be a bit more relevant in the retail segment. And somehow, things happened. Digitization reduced the competitive advantage we had of having 10 subsidiaries and having no sales force in a world that was based on a large network of subsidiaries. We had to compete with banks with 300, 400 subsidiaries and many, many employees. So today, that has changed significantly and somehow we've gone along the growth of the bank. Pablo also mentioned that we will need to be more focused on advertising in order to show what we've done in terms of product development for the retail world. Here is where we believe this [ virtuous ] circle of lower risk and better clients happens. Our competitive edge here would be that we have good result prediction models. And in my professional life, I really worked hard in this area, but now I'm sure that the way we are doing things because I've also experienced the same model in other lines, and they were positive in terms of the bottom line. And in this case, what we want is to go to lower-risk individuals, lend at a cheaper price. And our election of customers is done by ourselves. And we offer our products to those clients, and this has been our strategy until now. This chart shows this fundamental foundation with the scoring models that we have, we choose. And well, in fact, this is back test of clients 1 year afterwards. You can see that there is a 5.6% risk, 1 year after the credit was delivered, and those that were not chosen have a 32% risk. So we are capable of maintaining this as we've done until now. For sure, the development of retail area in the bank will be very efficient and will be very valuable for the organization. This is one of two models used by the retail world. The traditional model is the one that I mentioned before and a lot of subsidiaries in pre-digitization world with sales force in the street. And there's another model, which is a risk area that defines those that we are going to look for in order to lend our money. And that's the logic that we've implemented and that supports are present to the retail world. Also, in terms of digital products, the amount of clients in the bank has increased significantly between 2022 and 2023, almost multiplied by two. We began in 2019 and 2022 with the online deposits. [ Laresio ] also has this. This is for nonclients. And we also have a consumption credit for online. And this is the only bank that offers that, and this allowed us to increase significantly or grow significant -- this is a description of our value proposition with a comparison with other banks, the mobile app, digital term deficits that I was just mentioning. We are the only ones, but I think that Itau also has this, to be fair. Also digital consumer loans. We are the only bank and in terms of digital checking accounts and digital credit cards, we are at the same level as the rest of the industry. This is what the bank has developed in the last few years. So in terms of our strategic position, we have unique products. Another video. [Presentation]

So as I was saying, the online consumption credit for nonclients is unique in the industry. And what identified as in the last few days has been the acquisition of Autofin. This automotive industry today, we would like to multiply the share, and it provides 31,000 clients, this transaction where we acquired 50% at book value. It was quite a win-win transaction because ultimately, the price is quite appealing. But at the same time, we allow for those to keep a 49% to access at a fund cost and banking leverage that has a relevant value. So we believe that we can meet this offer to different dealers and clients. So I think that we could be quite a competitive player in this industry as from August 1, it has become part of the bank. It already consolidated results with us. And financial statement and the first few months, we've been trying to have an interaction between Autofin and the bank and make it as efficient as we can, so that all of the reports that are requested by the regulator were complied with everything that was asked for. Of course, within the general guidelines of the ESG, and we do believe this is relevant. We are also part of this, this is the general commitment that we have in relation to ESG in the bank. It has been quite welcomed by those collaborating in the organization. And the pillars that we chose are FX, culture valued by our collaborators, ever since we started measuring this indicator. The bank has reached the SSIndex certifications for 4 years in a row, ever since we started. This has been quite valued in the organization. In terms of sustainable banking, we are carbon neutral bank, including the measurement of the carbon footprint of our clients. We've also considered the ESG risk as part of the nonfinancial risk matrix, and we've also the changed credit risk policy in order not to provide credit to those activities that we believe that somehow go against the environment. In terms of inclusion, it has always been relevant for the bank. From the very beginning, we've always argued that from the social demographic aspect, tenants should not only be in one area of the country or the city. They are everywhere, and we've complied with that. And another indicator that I always mention is that general management, there are 12 management. And 4 of them, we have women, and this is the bank that includes the greatest amount of women in executive decisions in the industry. So that is from looking the best talent. Of course, we are always seeking for the best in order to work. Today, we're being advised by the IDB in order to improve our competence in the ESG world, something that I forgot to mention and is important. We had $255 million that we've got from the IDB, and this favors our growth, especially for 2024, with the implementation of NSFR. And we want to be a good supporter financial dedication. We believe that there is space here. There are several banks and companies work in the same regard, and we do believe that we have a lot to contribute. So this is the evolution of the survey test. This is the traditional market testing indicator. This is the SMBs world. We went from the last to #1. As you can see, 72, in particular. Today, we are the bank with the highest Ipsos surveyed test score. So this is in line with our growth strategy. So we are very happy about that. And finally, in a complex social and economic context, Banco Internacional has successfully achieved growth and profitability targets. And we are developing from our SME core. We are diversifying to the retail sector because we are confident that a more diversified banking assets and liabilities will have a higher value. And we believe we still have a lot grow in the segment of individual clients. Our share is low, but in the business world, we are very active. So we are confident that even though the economic scenario is not as we would like it to be, we have the necessary tools to keep on growing. Thank you. Just to tell you that, well, loans 2x and then the net income, CLP 85 billion to CLP 100 billion. So these figures, we believe that we can get to CLP 85 billion, CLP 100 billion probably by 2027. This is our target. The ROE around 15%. This is the threshold that most banking entities and the Basel world requires.

Thank you, Mario. Thank you, Pablo, for your presentation. We are going for the 10-minute break. There is a coffee outside, and we are going back with the Confuturo presentation and the Q&A. Thank you. [Break]

Good morning. I would like to thank your presence today. Together with Jorge Espinoza, the CIO of the company, who is here with me, we are going to talk about Confuturo. This is a profitable business with a sustained growth. We are one of the main life insurance companies in the country, and we play a key role in the industry. Our strategy focuses on flexibility. So our presentation is very simple. First, I'm going to talk about the fact that Confuturo has a very robust participation in the industry. I'm going to talk about value creation. And finally, some closing remarks. We are one of the leading annuities providers in Chile. According to this chart, we are fourth in annuity premiums, with $557 million in the past month, with 40% market share. In general, we always run in the second, third, fourth place. And we are the largest company in terms of pensions paid 115,000. We have a good operational advantage, and we had 15% market share. So every month, 1 out of 6 pensions paid by the company is paid with Confuturo. We are #4 in the voluntary product premiums for voluntary pension savings. And our purpose here is to reach the second or first place in the next years. We are #3 in AUMs with $9.2 billion. This accounts for 14% of market share in terms of the portfolio that we manage. And we are #1 in real estate. As Pablo mentioned before, we, for many years, anticipated the strategy of moving towards asset allocation that would prioritize real estate, basically due to the long-term characteristic of our liability. And many of these are shopping centers and malls. Some of you asked me about the risk. Our class of shopping center is different from the rest. These are neighborhood shopping centers, and only 39% of the GLA accounts for retail. The rest accounts for commodities or staple items, pharmacies, supermarkets. So our malls are less exposed to the changes in the purchase in habits of consumers. And finally, our company is part of the exclusive group of AA plus group of companies, which are the 5 largest companies in the market. So let me briefly share with you the alternative investment pension alternatives in Chile. We have 2 private alternatives. We have annuities and program withdrawals offered by the AFPs. So the life insurance companies are fixed in U.S. inflation adjusted, and the longevity release and the financial release are on the side of the company. So the person gets a constant pension also the life. That is a difference with the profound withdrawals, the AFP, where there is a regular recalculation of the speed at which people withdraw their money. So there is a risk maintained and longevity risk, too. If a person lives long or too long, that person might be without a pension. On the annuity side, there is only a part that is heritable. There is a 5- to 10-year guarantee. So whenever the person is missing, there is an inheritance in place for the family. But for the program withdrawals, everything that remains will be heritable. Here, we can see the finance in terms of expectations between the 2 products, you see that the program withdrawal start high, and as time goes by, the new life expectations actually are a little bit playing against program withdrawal. So we started at 65 and the chances for a person to live until the age of 85 are higher when the person is alive at 75 than at 65. So this makes the fund go down, and thus, the pension. If we assume a constant profitability, there is no mutualization of the risk. So they play with their own portfolio. And remember that there was an effort in the country to propose a pension reform. And it was clear that the annuity product was really senseful from the pension perspective, because you say through the life to secure the pension during the nonworking ages. So annuities are more competitive than program withdrawals, to such an extent that the preference for annuities is at around 50%, 55%. So out of 100 people who get a pension, more than half choose annuities. And those who choose program withdrawals will always be able to shift to annuities in the future. Let me take a look at the industry of annuities, in particular. I really like this chart. You can see that in 2012, 33% of the population in Chile, was around 0 to 24 years. What about 2050? Only 23% of the Chilean people will be in the 0 to 24-year segment. What will happen with people over 65? 2012 represented 12% of the population. And 2050, we will see more than double, 26% of the population in the country. In this age group, this will bring about a huge challenges, challenges in the labor market, of course, challenges in the pension market. And if you see the chart on the right, you will see that the market -- the direct premiums market for annuities has increased 50% in the past 10 years. And when you project in a conservative approach, only considering 65 years and above, we see that in the next 25 years, this figure is going to double. So this is independent from the economic context. We've seen that in years with lower growth rates, we have seen a rise in the number of pension -- pensioneers. So the future growth, considering the age -- the aging behavior of the Chilean population, the growth is secure. This is a capital-intensive industry, and we can see that there has been a consolidation in the annuity market for the past 13 years. So 13 years ago, there were only 7 life insurance companies that accounted for 80% in 2023. Only 5 companies account for this. We are part of that top 5 companies. So this means that in the future, we also expect that this market consolidates or the bigger companies with operational leverage can keep up its operational advantage. So for a company like Confuturo, growing like this means marginal increases in the fixed cost basis. Now let me share with you how we create value in the business. We have split this into 4. First, customer value proposition, efficiency and productivity, ESG, and Jorge is going to talk about the investment portfolio of the company. Let's move on to clients. We have a different company. Our goal is to pay the best pensions of the industry. And this strategy is not easy to implement. Of course, it's not easy to be profitable as a company and pay the best price. This is achieved, thanks to efficiency. And this is a very important focus for the company. And we are very proud that ever since 2016 to the present, in comparison to the best companies of the industry, we've always been leading the positions in terms of best pensions. This is the result of the strategy that the company has of offering the best pension at the best price. Another important change that we've been able to make is related to how we provide this. So customer support and essential segment. We didn't have other mechanisms to satisfy their needs. That wouldn't be for some cases, the face-to-face support that from 2019 into 2023 from 35% of face-to-face support, we only have 6% today. And this was basically done, giving new tools to the customers that don't have to get on the bus, get on the train to ask for the card, to sign a document because all these activities can be done digitally. So of course, the older people might not interact so often, but we migrated 94% of activities are done in this way. Now it was a challenge, of course, making these changes without affecting quality. When you tell people not to come to the branch, and you give them an app or you give them a tool, you need to do it in the right way so as to protect the service quality. And you can check the numbers at the top. 84% was our satisfaction with virtual methods. And today, 90% of clients say they are very satisfied with this. So we've been able to be efficient in the way we deliver service. So out of the 19 branches we have in the country, we only have 9, and 4 were changed into commercial offices. Let's talk about our efficiency and productivity. This is another way for us to offer value. There has been a very important change in annuity channels, sales channels. 82% traditionally, where 82% of the sales were then by people who worked exclusively. 82% of the sales came through that channel. Today, only 30% comes through that channel. We have privileged what we call a direct channel. When the person goes through their fees, the they want to get into the pension scheme and the person chooses Confuturo at that very moment or they get their quotes and they might negotiate and they just close the deal. The advantage is that the fees for the client, that part will increase the pension amount. This is how we give pensioners even higher pensions. So from 11% that we used to have in the direct channel, today, we have 40%. And then we have the brokers segment. They are very important in our strategy, because we want to be flexible of being able to get in and get out and be more aggressive or less aggressive depending on the market opportunities. So if you have a channel where 82% of the annuities come from people who work for us, we need to be not so flexible because we cannot leave to 100 people with our producing. So this mix of channels allows us to deliver on our strategy for commercial flexibility. In terms of individual life insurance business, we used to have 3 channels, a very robust one. That was the traditional channel of savings market -- the savings insurance market. So we had 240 people. Now there was a huge change in the industry. This channel is very expensive in terms of the initial fee that -- it's 17 months of premium that are given as an initial fee. Now in the past, these products considered retire -- withdrawal charges. Because if you stayed shorter than expected, you had to pay the fees for that, the charges for that. But due to some changes that were made on the regulatory side, they removed these terms. And so that mix that we were able to have, with a huge investment for acquisition with no exit barriers, was good for us to empower the other 2 channels, which are the brokers and an external sales channel that spends 100% of the time sell-in and also supplementing it with other ways of working. So thanks to this mix, we have around 85% of the sales through that channel and 15% in the direct sales channel. So we are very flexible to face this segment. And here, we have good information about efficiency. If you take a look at the red bars at the bottom, we've been able to maintain the total fixed costs of the company. Even though we had an important increase in the number of pension areas and clients and the investment portfolio. So the red line, as you can see, shows the SG&A over AUMs, 0.44. So thanks to an effective management of the fixed costs of the company, we were able to reduce these costs by 1/3. So our strategy of offering the best pension is achieved only if we maintain the profitability of the company and being efficient in costs. And just to tell you that as part of this, #1 that you can see here, this #1 includes an increase in cybersecurity and control and compliance. So everything that has to do with operational terms has decreased. And finally, let me share with you our ESG strategy, which has 4 pillars: employees, clients, environment and the community. And there is something special to this, which is the engagement of the directors, some Board committees in the company. So you have this organizational chart here, there are 4 areas that report to the Board. We have the audit area, the compliance officer that reports to the Board. But the most important thing is the involvement of the Board in the most important areas. We have Commercial Committee that develops the commercial and product strategy. We have a Technical Committee that reviews all the mortality tables and how they convey are against adjustments. They review the segments of the products, so on and so forth. Then we have an Investment Committee. I would say that, by far, this should be the most important committee. So 100% of directors are part of this committee, and Jorge is going to talk about this. But another important and relevant topic is that 100% of investments and the divestments of the company are approved by this Investment Committee. We also have an operational risk on Cybersecurity Committee. We have an Audit and Compliance Committee, a Human Resources Committee and an ESG Committee. All these composed by company directors. And last, well, not last, but let me highlight what we've done in 2023 in terms of ESG. Our company, in terms of carbon footprint, the operation of the company is not really relevant, not at all. However, if you go to the finance portfolio, that is to say, how much -- I mean, what is the carbon footprint of the companies we invest in, that is quite a relevant number. And that is our greatest challenge for all investment companies. In fact, we are the first company to measure carbon footprint in their investment portfolio. Overall, issuers that are part of it. This year, we did that for the second time. And the most important thing is that we are the first company to set a quantitative goal to reduce carbon footprint in the commercial portfolio. And we are committed to have a 20% reduction by 2030. What do I mean by this is that each of the emission reduction plans of companies that are part of our investment portfolio need to achieve this plan in 2030. And each investment needs to be done under the carbon footprint level. So by 2030, we will be able to reduce 20% of our overall CO2 -- sorry, carbon footprint emission. So high contamination level companies that we would like to be part of, we would like to have a convertibility plan. For instance, we think that it's more valuable to sell all of the offers of highest contamination companies. That would be easier than participating in our reconversion project generator that works with carbon. It would be better to leave that aside than to reconvert it. But it would be better for the planet to have an active participation. So that will be addressed exceptionally, if that's the case. And the last ESG chart, let me just highlight what you have down there at the bottom part. We cooperated with Fundación las Rosas. We've been committed to them for a long time already, and we've acquired a very important commitment, which is to build a nursing home, the most modern one in Chile in Latin America. We are now in the development stage. And this is -- we want to materialize our goal, which is to improve the well-being of our elderly in Chile. So that is our purpose. We are very much in line with what Pablo already mentioned as one of the goals of ILC. We partnered with Università Cattolica in the observatory of the elderly, whose goal is to develop various research, with the purpose to improve the quality of life of the elderly in Chile, given the demographics that we are now facing. And we already have 26 reports that have been published, and this is delivered both to legislators as well as institutes. Everything that's related with public policies, they all have this input that we are producing together with Università Cattolica. We also have 40 courses that are delivered to the elderly and we have 16,000 people that have already registered in our courses. These courses have to do, for instance, with Excel spreadsheets or things that the elderly want to know about in order to improve the quality of life. Something also very successful last year, and we had to double, we offered a free of charge service worker of -- an assistant worker and to help them in -- fill in different sheets, et cetera. So our social worker was at their disposal, and this was great service for our Confuturo clients. We also launched, as part of our ESG policy, a platform -- well, this is not a Confuturo platform, because it is open to all the community, which is [indiscernible]. So those who are in the preretirement stage, and want to understand the processes and the products and what's best for whom, they can join [indiscernible] free of charge, and they will learn about the whole process. They can ask about their personal situation. And this is seen on a case by case, and this is open to all the community, and we have over 200,000 visits already. And last, we have extended the leadership program to all of our employees. So with this, I will now leave Jorge, who will be talking about how to add value on the left part of the balance sheet, which has to do with the investment. Jorge, you have the floor.

Good morning to everyone. In general, I am on your side of the audience. So this is a new experience for me. So let's hope we can have a clear presentation. In terms of how to create value for the company on the left side of the balance sheet with our assets. Basically, I would say that there are 3 pillars, and Pablo already mentioned them in part of his presentation. First, what has to do with the investment portfolio, we'll see a detail further on. This rebalance has allowed us to increase our investment to large assets. One, are the international alternative assets, almost 10% since the ILC took over the company. And the other one, 9% of real estate assets. We bought Espacio Urbano in 2016, by the end of 2016, that was important, and it has continued to grow today. So that would say that the first pillar of value creation. There is another pillar, which is our internal philosophy, our investment philosophy, I will show you the 7 pillars that we have, what we believe, what we do every day, and we are convinced how investments should be done. And last, there is another pillar, which is also very important for value creation, especially sustainable value creation, which is the control of all investments that are done by the company. This is deeply analyzed and once we do this, we have a continuous follow-up that has been quite useful in time. Let me start with this slide. I believe has several messages. But let me highlight 3 key messages. First, if we go to the upper part, the size of the investment portfolio. This is quite big for Chilean and almost international standards. You can see that 8.6 million correspond to annuities, maybe you don't see this, but this portfolio is quite diversified. We'll see this later on. And 70% of this portfolio a bit more is invest in Chile, 28% outside Chile, and we'll see this further on. Down there, you'll see the very simple cash flow that shows that the company is growing and has many more bullets, as we say, to make new investments. This is from January to September. The company has sold final income for over $500 million, and they pay pensions $437 million, a huge portfolio generating income that comes from maturities and coupon payments over $500 million, and this allows us to invest by the end of September this year, almost $600 million. Since we are an annuity company that has long-term liabilities in U.S., we give a very important priority to fixed income and from the $6 million, almost 6%. We have Chilean fixed income and also foreign and $240 million is investment in real estate, alternative operating expenses and among others. So here, this slide and the next one, there is a lot of information, lots of bullet points, but what I would like to convey here is that basically, the company has quite a proactive approach in managing the different asset classes. For instance, let me give you 2 or 3 examples of each asset class. What has to do with Chilean fixed income. We are permanently watching the proposal, trying to find opportunities and names that could be improved or deteriorate in order to rebalance our portfolio, something we've done, and it was very important. This was not done last year, but the year before that in 2021 with very good results for 2022. We anticipated an important inflation. So we activated the portfolio in U.S. through purchase of instruments and derivatives, et cetera. So we had a very good 2022 by monetary correction that was related to the U.S. If we go to the international fixed income, we would like to highlight 2 or 3 points. Our database is 9,000 bonds worldwide. We are not just looking for bonds in Latin America, also Europe and Asia, and we also have an investment in Africa. As I said, a huge database, 9,000 bonds. Every time we invest or to almost 100%, the investment is hedged into U.S. So we want to have assets that will generate long-term cash flow in U.S. And the other relevant point in terms of international fixed income that I would like to show and the fact that we have a relevant source of liquidity. When we had the withdrawals in 2021 and the local market was closed, we were able to generate all of the liquidity that we needed by selling bonds overseas and the conditions. At that point rates were still low, so we generated liquidity with profit. Another line of business that we always analyze is to manage our currency, which is managed actively on the one hand, and another part of the portfolio is based on an optimum hedge coverage that could be mentioned in the Q&A later on. And in terms of equity, I would say that we've done 2 things. One, we've reduced the exposure of public portfolio. But the important change is the significant increase in investment in international alternative assets. We'll see that later on in more detail. This was based on a program that was thoroughly thought. It started in 2014, I would say that up to date, this is not a young program, but relatively mature one. Another assets that we also like is real estate financing, maybe we should highlight lease-in and mortgages. These are instruments that provide very good rate. They give us terms, generally long term in U.S. with the real estate guarantee, but these are liquid. But we could have liquid assets now. And this was also mentioned by Christian, he explained it very well, real estate. Here in 2016, we bought Walmart 10 shopping centers and these are quite neighboring shopping centers. The anchor store would be Walmart. It sells first need articles. It was never closed during the pandemic. And around Walmart, there is another set in banking and pharmacies. So it's quite expensive. We like it. We've been doing good. We have a lot in the portfolio, but then we'll show you that we can diversify that asset class through investment, as you can see there in logistics. And that there is another driver. Maybe I would like to highlight the last one over there. I don't know if you can see that. This says successful investment recovery in special situation and important portfolio and also special situations like LATAM, Guacolda today, clinical survey that was a real estate financing, and we'll be able to obtain quite reasonable recoveries, covering most of the debt mostly. What I was saying about this. [ The interpreter apologizes, there is no audio. ] So here, we can see the different drivers and whenever we want to have a particular business via bond or a share or whatever, there is a very stringent study of the investment alternative acquired, a thorough research done by the managers -- by the risk managers and investment managers separately. We are always trying to have a diverse portfolio, and we'll see this later on. And all of that is included within our construction of our efficient portfolio. This efficient portfolio, it's not that we just came up with having alternative assets or real estate, but this is born based on quite a sound academic work, which has to do with the optimization portfolio of markets that has to do with the volatility of different assets, and we work with variance and covariance and it gives us a reserve alternatives. And so the Board chooses the proposal, which in general is the share ratio. So risk control, as I said before, is something very important extent an export prior to the investment, we analyze what we are going to do. And afterwards, of course, we have the large portfolio, but in fact, we are permanently analyzing the investments of this portfolio. And this is done by people, so teamwork for us is fundamental. We really emphasize on that, but it should not only be worked there because you can work, do teamwork and have quality individuals. So in line with that, we have people with a lot of experience recognized in the market. And we think that this is a mix that works for us. I don't know if it's a recipe for success, but it's generated good returns in time. I already touched on this, if you like the most theoretical aspect of it. This is our asset allocation model based on the market with portfolio imitation principles 2 or 3 aspects here. Here, the inputs are the expected returns of assets the cost of the liability, also volatility, this could be historical or expected. It is more difficult to estimate. But in general, we use historical one. The model also includes because if you just leave the model, you give different solutions, but we also include limitations that have to do with regulations also market limitations, liquidity limitations and great worthiness. And what is the output of the model a series of portfolio P1, P2, P3, P4, those are the portfolios. And we compare to baseline and then we have a proposal in general, we have three or four portfolios to the investment committee that are very much involved in everything that we do. And luckily, that's the case. And then which is the portfolio, and that is the one that wants to be implemented in the long run. This is done every year, but this has not changed every year. The long-term target portfolio has small fine tunings but principles are very clear, and I will show you right now. So here, I would like you to see the first two columns, 2013. Why is 2013 important because well, in 2013 -- sorry, 2023, 10 years have passed. So it's important for changes. What are the changes made? What do you have there on the right? We had quite an important rebalancing. Let me highlight two assets that I mentioned before, the 9.5, which is an international alternative and almost 8, which is real estate. How has this been financed by Southern Local fixed income with low return? That's first point. Second, if we compare 2023 in September with last column, which is what has been done for the long term with important degree of satisfaction on having the portfolio where we wanted to be, maybe we need to do some small fine tuning reduce maybe the international fixed income, but 90-10, 95-5 is already done. This does not imply that now we will forget about this because we need to rebalance and optimize each of the assets. I'm getting to the end. So let me share with you the alternative investment funds, which were very important for us that was the value, the program creation. We created earnings were as over $150 million. So the TIR is around 14.4 today, maybe next year is going to go down a little bit, but it is in two digits, which is a very good investment. And for real estate, at the very beginning, in 2021, '23, '27, 2021, very much concentrated on retail, which we like that we should also diversify. Also in the timeline that we can see here, this is how the real estate portfolio will change, retail might go down as the Industrial segment will go up. Well, this was shown by Pablo before, but just a couple of comments. The business has improved in the past two years because we have a good increase in annuities, 180. This is very good. And the net profit and the ROAE 2013, there were some problems. But then if we could draw an imaginary line the lobe is positive. We've had very ROAE rates, 2021, '22. Those were very good, 2017 then -- we know our expected ROAE. There is some volatility, but the good thing is that the trend is upward along the time. Thank you very much. These variabilities, what we are going to see in the future as well, basically because the investment portfolio we have in private equity and some public market positions. If you're senseful in the long term because what we need to deal with the short-term variability. So we shall see. In the past 2 years, we've had exceptional years then I'm going to show you the next page. The target that we have is there, it's plain to see. These years will not necessarily repeat the same way, but we are very happy because we were able to diversify our investment portfolio. Our turnaround will be very important. We are happy, and we are now focusing on how can we diversify in C class. First, the real estate investments, we are growing very strongly in logistics. So it's logistics, of SMEs, offices and small offices and warehouses. So we are taking advantage of the parking lots of the malls in Antofagasta. We are starting a second construction phase, and we also build in [indiscernible] in the shopping mall there. So that will bring about lots of benefits for the residents of the area. But just a few words to close. Many of these points were mentioned already, but let me emphasize a couple. Aging population in Chile provides a steady flow of organic growth for annuities. So this ensures relevant growth in the next years. We are prepared to grow in line with the industry with a robust commercial, operational and financial position. The future growth together with efficiency will allow us to generate more flexibility in our commercial and investment terms -- teams. And our focus will continue the improvement of our ESG values. These are the targets that we set ourselves. 80 billion approximately, this is what we want to get to. And the goal is to get to these targets. This is a very large company, a very profitable company. 13% ROAE is long-term expectations. So we are very proud of what we have achieved in the past 10 years, and we are very anxious and happy for the future. Thank you.

Before we open for questions, and before inviting the three speakers to the stage, let me conclude with just two slides that one way or other summarize what we are looking for, for the next 3 years and some final messages. You know the company for long. Many of you have been with us ever since it opened and let me check the following. As a summary of all these 4 areas, business areas on the pension side, there is a potential for the market. Voluntary savings product, this is a tactical move and there is a lot of room to create value to consolidate this regional logic. So our regional scale makes us think that there are certain activities that can be concentrated and consolidated best practices, scale efficiency. We should go that along that way. On Confuturo, there is an organic growth. We have a unique business model that allows us to be flexible. When we acquired this business, the first question we made to the board was who will decide on the selling price? The commercial area was very clear on this. There was a good number of free brokers, brokers that had to be busy. But the model changed completely, and now we can create more flexible value. And of course, efficiency that Christian made reference to, we have the second, a more efficient company in the market. So this means that actually we are the most efficient in annuities. For Banco Internacional, we have high hopes for growth in commercial loans, but we are also putting our efforts on the retail sector. We believe there are inorganic opportunities as well. There is a whole world of nonbanking entities that are weak. They don't have access to financing and they have some issues like [indiscernible] and we have our eyes set on those potential opportunities. And on the health side, despite the crisis, there is a consolidation of the largest health network in Chile. There is flexibility for the future and there is area of importing more strategic partners. So from 2012 to 2015 we gave a company that had profits from CLP 60 million to CLP 80 billion with ROAE 15 to 18. From 2017 to 2022, we went up from CLP 90 billion to CLP 120 billion. And we are thinking about a future with CLP 130 billion, CLP 180 billion and ROAE around 15. So the ROAE have a tax rate. Remember that the tax rate in Chile went from 17 to 27. So the tax office took 2 points of ROAE. So the 15, 18 that we saw in 2012, 2016, if we hadn't have these rate, the following 4 year period would be different. And in the future, we would have 17%, 18%. Second, these ROAE levels. If you remember, this was the rule of three that we would learn at school it resembled the equity discount rate. So we got to 7%, 8% discount rates easily, even though there are businesses that are under regulatory pressure. So this would be part of what we do through diversification, through smart tactics, we were able to reduce the risk of these assets. Now what Christian and Mario explained as well, the marginal PIR of the business that we are doing with the futures or the annuity sales are 2-digit PIRs. So they add value to the 7%, 8% ROE. In terms of ESG technology and digitalization, we've done our homework, and we were very good, but we have sold a little, not as much as we would have liked. So we see other peer companies in the region, not just in Chile that have performed better. And our management model was the same as we presented at the IDL. A model where the managerial teams are taking the lead. We are part of the strategies. We are part of the acquisitions. We have our routine strategies that this is a managerial model. And then if we multiplied ourselves by 15 in assets, we've increased our client base by 2 and the matrix model is intact. We are not a holding of 90 people. We do not focus on technology and investing million dollars in development that are imposed on our subsidiaries. We are a matrix of 22 people only. So I believe that we deserve a holding price and not a discount actually. And finally, let me close by saying that we are very proud of what we have done. We see that such a huge effort by the teams has been done without ruling out our purpose for economic, social value for our customers. We have never resigned to the values that we want. And no matter what they say, we believe that this is the right thing for our clients. Thank you very much. And with this, we are open for a few questions and answers. Mario and the speakers, please come and join us on the stage.

Thank you very much for your presentation. I have three questions actually, if I am allowed. So the first question in relation to pensions and habitat. What do you think about the organization of the industry. Beyond the reforms and the numbers, there are some ideas that come from the right -- the bidding processes of old affiliates that have a huge impact on the returns. We are asked for the new affiliates, we can work based on commissions. So it's surprising because they come from the right. What do you think about the reorganization of the industry? And what would be your proposal in order to get something from the industry reorganizations? Because even though remaining the same would be good for the company, it might not be so sustainable. What do you think? What do you think about that reform? And then for Confuturo, could you please share with us the real marginal TIRs. And the ranges, what about the ranges? What are the models for private equity returns and the real estate part, what would be the marginal TIR as maximum that these businesses would give. And what about the dividends of Confuturo, what do you expect? What about the growth in terms of investments. Do you think that this could be maintained? What about the coupons, those bonds? And lastly, the bank has shown that it's moving to a new position in the segment that it is competing today. These have given good results. So how do you see this movement? And how do you see this idea of moving to other segments? How do you see the competitive advantage in that? Because if it was more of the same, maybe we could base our sales on the current advantages, but to what extent do you think that keeping the return is possible if you are shifting to something different, different from where you achieved great results in the past years.

Okay, let me start with AFP in relation to the reform, I would make a distinction first, the way as it has been considered, the reform fails to have actual figures for a real diagnosis. So it is not an adequate reform. PGU is not solving the problem, but at least improves the pensions for the first 70%, 40%, 50% increases so the problem is on the following 30%, 40% that is not linked to PGU or has a very low PGU and the reform is not focused on that. . Second, the reform is not considering the informality of the labor market either. The [indiscernible] density is about 50% and below. So today, the informal market or labor informality has increased. So if we are discussing how pensions are going to be improved and at what segment, that is a discussion that must be, of course, made. Now if this is a matter of new reform, that's a different story. And there are some political parties that are talking about this already, that put the emphasis on the industry. Now the point is, is the industry expensive or not? Most of you are in the asset management world. And if you take a look at any mutual fund, 150 basis points is the minimum, and the industry charges 50. So when you compare the 401 American system, the European system, this is a very cost-competitive system. So again, is the system expensive? No. I would say no, it's quite competitive indeed. So the next question that comes to my mind is what reforms could the industry implement to change? One reform and a measure that could be implemented is to shift the commission as was done in Peru, an alternative commission was offered. So there was an alternative commission to work on the salary and make it more comparable and stop talking about something academic. Let me give you an example. The report cited by the government to justify a reorganization of the industry talks about the economies of scale, talks about separating in the account administration, the fund administration. So if you take a look at that report, its economies of scale up to 1.5 million of affiliates, then it talks about economies of the space. So exact one everybody is in the field of 1.5 million. So there is not an intention to group them altogether. So the idea that if we centralize systems, considering the technologies that exist, it will be of no use. We have systems by use. So 1,000 [indiscernible] for 100,000 affiliate. So the barrier of entry to the industry is the same. That's why two new players have joined the market. So I believe that is the main discussion is the property of the funds, then we should listen to what people want. People want solidarity with the taxes. So if we consider that this is the reform that Chile needs, a reform that will alleviate the informal market, so on and so forth, then the reform could be implemented. Otherwise, it will be difficult. But as I was telling during the break, I used to have a boss who said I have seen people that are following the political times. Times are volatile, you just need to be patient. But in structural terms, this is what we see. The reform is deficient because they are not considering all aspects. The profitability of the margin, now this goes changes in time. So two things that I mentioned, one, everything that has to with ratification that used to be commercially driven today's investment driven. That is an important change. Second, our flexibility in distribution channels allow us to get in and get out more aggressively depending on the market possibilities. So lately, the IRR -- last businesses have been highest rank. It has moved between 9% and 13% in the last few years. Today, it's between 12% and 14%, the highest range. So this is -- I mean, there is a part of that profitability that was already expected because now that we are investment driven, we know exactly what we're going to invest the money that will arrive. Part of that are businesses that are already committed. For instance, real estate business that come up every day. We do have a commitment in last 3 or 4 months, whether by financing or profit and that I mean many of these centers are bought, I asked. So given that that investment is real, we get the money, and we invest that IRR. There's another percentage and our private equities, but this has a long-term profitability but may be volatile. And the last part are the fixed income rates. So today, this is a higher drag between 12% and 14%. Yes, given the asset mix that we are using to invest with new money. When it's in 8.5%, for instance, we adopted a more conservative position when these are the levels, we've chosen a more aggressive one. In fact, this year, the decision was to sell much more than we have in the budget, and we had two advantages in the last year, one high IRR and zero accounting credibility. So this means that you don't have to do accounting losses for the new sale, which is an anomalous situation. But it allows us to take advantage of that in the past were given to that. The second question has to do. Well, I don't know if I have to answer to that, the dividend policy that we need to consider is zero in the next 10 years. No, just joking. So the dividend policy, to make projections 30%, for instance, of the profit in dividend, but this is somehow tricky because insurance company have reserves that go directly to network and do not go to results. So when you're talking about 30% of profitability, it's not just 30% of network of the equity, all insurance companies have some installments. This was from the past, and it's [Foreign Language] in Spanish. So that's why 30% could be 60% of the net worth version. But that dividend trend with that, we will meet our program for the next 10 years for sure. But this is decided by the board every year. The private equity you mean? The non-expected return has been plus $18. When we decided to get into the program, we did not expect that but a greater profitability than the public market because you have that plus liquidity basically. And therefore, return is in dollar, plus $12, plus $14. This is what we believe for the future. And if you convert it to U.S., it might be between $100 and $150. In June, the tables of 2014 were paid. This was the highest impact. So as from the second semester last year, we no longer have that erosion of the table of 2014, which was really like USD 800,000 a year. So there's less pressure then we had so that they are not pay 0% dividend. I'm sorry, but we cannot listen to what they are saying anything if they don't speak to the mic. As for the new risks that we are taking in terms of going to a segment that we were not -- and before, even though it is true that we don't have any prior experience, we do have the team in charge that are really appointed with that. They've wide experience in that return, and that's how we somehow will move forward. Second, our expectation when we shape the bank, the idea is that 25% of the total portfolio will be retail large banks in Chile is 50-50 and even more. And third, I think it's quite relevant. The more significant thing here is risk. So we have monitoring and control of risk on a permanent basis because when you see the Chilean story in this segment, one has destroyed that value has been to take exacerbated risk levels or too high risk levels, all banks in Chile had a consumption division. I used to work at one. That was consumption division, then it was bank and then it disappear. And basically, when the maximum rate was different and the risk of levels which portfolio were higher than the spread that you can obtain. So the risk what I learned and what you analyze in history is that the critical factor here, and this is what we need to monitor. Because from the point of view of efficiency of having everything digitized, today, this is a positive point for us to develop the business. It does not demand so much investment or investing so much physical subsidiaries. And so we believe that risk control is what determines everything. This is the key point and on the other hand, we are not expecting to have a 50-50 bank, but to improve the diversification through a percentage of loans that reached 25% in the end.

As you were saying that the scale has always been important, but now even more so due to regulatory aspects, investment technology. How do you see the financial industry for the next 10 years in terms of consolidation? And how would you play that role? .

When you compare the structure of banking today with 6 large banks and 4 smaller banks, this is a structure that is not so weird around the world. Canada, for instance, has a similar one and Israel as well. To say something, it seems like if you allow banks to freely merge, you get to this specific structure. So in our point of view, in Chile, I think that something may remain to be consolidated if we participate or not. I now give the fort to someone else, of course, but I think that we don't see it so significant in relation to what we have nowadays. Basically, based on that, I assume and for the merger of two banks that have more than 10% share in the market, probably it won't go over the antitrust. And something might still remain to be defined with smaller banks, but I don't imagine a significant change.

I have a question in terms of the portfolio, those credits above $20 million. And given the current size of total placements, maybe these could take us to a level of optimization that could generate some risk.

We believe that the segment of corporate business above $20 million. As the bank grows, it becomes less risky. We believe that the governance of banks in terms of risk is quite good, and it has always been consolidated in terms of advisers from the very beginning. And then with board that are very well experienced in that regard. We believe that we won't take any higher risk. We could work on spreads.

My question is for Confuturo. I would like to know when you talk about private equity investment, you talked about a 15% IRR. I would like to know the percentage that corresponds to the appraisal of the fund. And what percentage corresponds to distribution in cash to fund contributors? And second, I would like to better understand when you talk about the coverage of funds, you -- I mean, private equity funds -- don't have an amortization calendar. So there's kind of a mismatch in the expected cash flow. How do you handle that liquidity risk and with the needs that you have?

The coverage is done with forward -- from dollar-peso I mean because there's no flow. So you cannot do it with swaps. So we handle it that way. 100% of the company, we have covered the Not 100%. I think it's different, the policy, and it has to do with an optimum hedge model, but the instrument that we use to manage these are forwards. What was the other question?

What was the percentage of the IRR?

Well, ultimately, this is always distribution when you measure this because it's the actual profitability that you get when you get the money only then you have the actual rate. But as it is maintained, which is basically in last 4, 5 years depending on the fund. As long as there is no return of the fund, there's always appraisals in the middle, and it depends on the capacity. To give you an example, we just returned from a visit to the main manager in the U.S. And next year, they anticipate that this is not a year of returns. Why? Because the IPOs markets, it's close. Basically, they forecast that by the end of next year, there will be a reduction of FED rates and it might improve the possibility of going back to return. So next year, what we'll see will be appraisals rather than returns and low returns. So but the expected return of the fund is done throughout the period, and that is completed with the return. Now within the period, you will have appraisals periods and in the end, you will have the return, as I said. .

Let me add something to that. In relation to the first question, we cover the alternative position, we rebalance twice a week versus the back-to-market of alternatives that does not change, but by the end of the month, you get the appraisals, and this is hedged peso or dollar U.S. coverage. Practically everything is cover, except for what Christian said, which is an optimum hedge, but the pool of international portfolio is covered. And as for the second question, also adding to what Christian already said, our program is not a super mature one, but it's not young. It's kind of a middle age program. And if you see the appraisal in terms of distribution between 25% to 30%, and the rest of that would be appraisal. So maybe not next year, but the following one, we will have good distribution, and then we'll be able to have a profitability. I know that you are heading that way with your question, right?

My question was about [Foreign Language], I wanted to understand how complex it is to manage Working capital, I understand the more extended terms of ISAPRE and FONASA and in virtue of how complex it is to project the cap and also the uncertainty that we have, what level of efficiency can you implement in the business in order to keep a competitive structure.

First, I understand the question. And in normal times, FONASA was not a good thing here. But FONASA as nowadays is a good payer, except for the level that they have with [indiscernible] anyway, that's past story. But they are operating to 90 days. And almost half of the sale is insured by FONASA, we don't see any risk there. I don't want to imagine the situation of the other providers. But from that point of view, our credit risk is more diversified as well as the payment period. Second, we implemented a plan 6, 7 months ago of liquidity. And take liquidity. And [indiscernible] is well prepared for an adverse climate. As for efficiency, there are several elements, something that is not really table, but this is not very mentioned. And the industry will change because this represents quite a relevant component of cost. And also, we have a series of initiatives that go from self-service, data management and efficiency. I mean the health management comes from different worlds, some come from retail, others of consultancy and there is a relevant growth coming from LatAm. And what we apply in that efficiency logic, the use times, waiting times, tension protocols is a lot of the airplane industry. And these have given good results. We have daily surgery is something we could not really expect some years ago. Also telemedicine, as I mentioned, 18,000, 20,000 consultations, we are talking about large medical centers, and we have not got really into it. This is just a simple consultation, not so comprehensive in the diagnostic area, the same thing. Everything that has to do with diagnostics, it can be outsourced. NAB, we are in a plan of centralizing all of this management that is decentralized today aims at the efficiency that we are aiming at. Our big difference is that in a terminal crisis, our network with FONASA patients or ISAPRE patients that become FONASA patients is quite quick unlike others. So we need to go through the experience, but we are really very well prepared to do so. And the working capital has been a great concern because this is not just a matter of how much you lose or not. The most relevant crisis when this is very much stressed, well, the working capital will be able to operate.

Last question on behalf of investors that are remotely connected. They are related to the growth in IoT, what's the capital needs that subsidiaries will need in order to support this?

Well, with the dividends of Confuturo, we will finance the growth of the bank. That's quite clear, I believe. What we observe at least in the last 2 or 3 years is that we will continue to be able to honor our debt. And generally on surplus that will allow us to finance organic and inorganic growth. We don't see stress in that regard, let's say. And one is defined is to support the growing plan out of the bank. I think there is a pending compensation with Confuturo as to whether continue to see this reality of spreads and IRR for longer term. Of course, these are decisions that add value and generate profitability in our discount rate, where we see lower needs and not just out of the crisis situation. but for something that has more to do with structural aspect is in the health service providers. When you look outside, what has that been happening in more developed countries is that -- I'm talking about most developed countries. I mean, Germany, France, also the U.S., you see that debt for 100,000 have been going down. That is to say the industry is investing more in diagnosis and outpatient activity in predictive activity, early detection more than or in technologies that allow me to operate more efficiently the surgery and the day rather than in logic of award or a bet, which is a long CapEx. So we see that if our organization such as ours can generate a more efficient management model, we should bet on the outpatients and early detection rather than on the other. And in terms of amount of pesos, this is more limited than creating clinics from scratch or duplicating beds as we used to do that. We are not observing that. So I think that we have financial capacity, cash flow and resources to finance what we need for the next 3, 4 years. Well, we've been very punctual. So we would like to formally conclude this meeting. Thank you very much for your participation, and we are at your disposal. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]