Earnings report 3rd quarter 2014

Earnings report

3rd quarter 2014



Revenues:

• LTM revenues amounted to Ch$578.259

million.

• 3Q’14 revenues amounted to Ch$151.422

million, increasing 10,6% compared to

3Q’13.



EBITDA:

• LTM EBITDA amounted to Ch$33.024

million.

• 3Q’14 EBITDA amounted to Ch$6.215

million, decreasing 36,5% compared to

3Q’13.



Net profit:

• LTM net profit amounted to Ch$13.002

million.

• 3Q’14 net profit amounted to Ch$1.741

million, decreasing 56,6% compared to

3Q’13.



Net financial debt as of September 2014

amounted to Ch$111.532 million.

Ticker Price (11/5/14) Marcelo Bermúdez Chief Financial Officer Sebastián Ahumada Investor Relations

(562) 2 998 2854 / [email protected] (562) 2 998 1800 / www.cruzblancasalud.cl

Investor Relations Department is available for further questions regarding this report at +56 2 29981800

November 10st ₂₀₁₄ Company Statistics CRUZBLANCA Ch$ 500 Market Cap (Ch$ bn) Float (%) Shares (# mm)

3-Mth Avg. daily volume (Ch$ mm) Net debt / EBITDALTM (x)

319 26,27 638 155 3,4 Price Performance (Ch$) Q&A

CRUZ BLANCA SALUD S.A.

Executive summary

Main Results

3Q’14 vs 3Q’13 - Consolidated

EBITDA Close-up

Outpatient business – Quarter Analysis

Hospital business – Quarter Analysis

Health insurance business – Quarter Analysis

International business – Quarter Analysis

EBITDA - Margins by Business Unit

CAPEX

Cash flow

Stock - Market Information

Glossary

Financial Statements

Appendix A

Contents

3

5

7

8

10

12

14

15

16

17

18

19

21

24

Insurance

Hospitals

Outpatient

International

Main Results

Cruz Blanca Salud in the third quarter showed a revenue growth of 10,6% compared to the same period of 2013. EBITDA as well as Net Profit margin decreased compared to the same period of 2013. The lower margins reached in 3Q’14 are mainly explained by the increase in the claims ratio of the Insurance business (Isapre Cruz Blanca), due to the higher frequency of usage of outpatient procedures and higher daily cost of medical leave.

3rd _{Quarter Overview}

3rd _{Quarter Main Drivers}

 Continued expansion in the outpatient segment (Chile and Perú) and life insurance company.  Higher claims rate in the Insurance business: 87,3% in 3Q’14

 2,2pp lower occupancy rate in hospitals, achieving 54,4% in 3Q’14.  +17.136 additional average policy holders compared to 3Q’13.

1. From 2Q’14 report, EBITDA calculation has been modified in order to meet the reporting criteria of the new controlling shareholder, Bupa. Therefore, when 3Q’2014 and 3Q’2013 are compared, both EBITDA’s are calculated according to the new method. When historical series are presented, only from the last quarter (2Q’14) is calculated under the new method. See Appendix A for further details.

3Q'14 3Q'13 Var. 9M'14 9M'13 Var.

Revenues (millions of Ch$) 151.422 136.931 10,6% 439.683 393.975 11,6% EBITDA (millions of Ch$) 6.215 9.782 (36,5%) 27.091 23.530 15,1%

EBITDA margin (%) 4,1% 7,1% (3,0%)pp 6,2% 6,0% 0,2%

Net profit (millions of Ch$) 1.741 4.008 (56,6%) 9.409 9.668 (2,7%)

Net margin (%) 1,1% 2,9% (1,8%)pp 2,1% 2,5% (0,3%)pp

# Shares w eighted average (thousands) 637.650 637.650 - 637.650 637.650 -Daily transaction volume (millions of Ch$) 155 394 (60,8%) 250 548 (54,3%) Policy holders average (Insurance) 366.239 349.103 4,9% 368.798 351.867 4,8%

Occupation rate (Hospitals) 54,4% 56,6% (2,2%)pp 53,1% 54,4% (1,3%)pp

1. Other financial assets include cash investments but exclude the guarantee legally required in Isapre CruzBlanca.

Statem ent of financial position sum m ary (Ch$ m illions) 3Q'14 2013

Cash and cash equivalents + Other financial assets (current and non current)1 46.989 55.254

Total Assets 509.592 481.977 Financial Debt 158.522 150.831 Net Financial Debt 111.532 95.577 Total Liabilities 319.413 289.623

Equity 190.179 192.354

Total Equity and Liabilities 509.592 481.977

Incom e Statem ent Sum m ary (Ch$ m illions) 3Q'14 3Q'13 Var. 9M'14 9M'13 Var.

Revenues 151.422 136.931 11% 439.683 393.975 12%

Cost of sales (121.826) (109.008) 12% (345.702) (317.941) 9%

Gross earnings 29.596 27.922 6% 93.981 76.034 24%

Administration expense (25.637) (20.810) 23% (75.946) (60.857) 25%

Earnings before taxes 2.227 5.066 (56%) 11.507 11.390 1%

Taxes (486) (1.058) (54%) (2.098) (1.722) 22%

Earnings (Loss) 1.741 4.008 (57%) 9.409 9.668 (3%)

EBITDA 6.215 9.782 (36%) 27.091 23.530 15%

6.215 4.284 308 978 204 1.798 9.782 3Q'13 3Q'14 9.782 6.215 3Q'13 3Q'14 136.931 151.422 3Q'13 3Q'14 367.445 415.270 471.578 532.049 578.259 2010 2011 2012 2013 LTM(1) Ou tp a tien t

3Q’14 vs. 3Q’13 - Consolidated

3Q’14 Revenues amounted to Ch$151.422 million, a 10,6% increase compared to 3Q’13. Revenue growth for this period is mainly due to: (1) an increase in policy holders (3,8%) in the Insurance business; (2) a greater activity in outpatient centers and (3) the contribution of Anglolab and MediPerú acquired in 2013 in Perú.

3Q’14 EBITDA reached Ch$6.215 million, decreasing by 36% compared to 3Q’13, mainly due to a higher medical loss ratio in the insurance business (up to 87,3% in 3Q’13) partially offset by better results in outpatient centers and a slightly higher activity in hospitals. CAGR (2010 – 3Q’14) = 13% CAGR (2010 – 3Q’14) = 2% (36%) In s u ra n c e H o s p it a ls In te rn a tion a l Ot h e rs(1 ) Ch$ million Ch$ million In s u ra n c e H o s p it a ls Ou tp a tien t In te rn a tion a l Ot h e rs(1 ) 10,6% Revenues EBITDA Ch$ million Ch$ million

1. Includes group’s IT and shared services, central administration expenses and consolidating adjustments among others.

151.422 1.708 10.167 1.889 3.383 760 136.931 3Q'13 3Q'14 31.153 41.889 _38.810 30.680 33.024 2010 2011 2012 2013 LTM(1)

1.741 3.011 84 666 193 1.687 4.008 3Q'13 3Q'14 4.008 1.741 3Q'13 3Q'14 11.151 21.310 18.680 10.993 10.734 2010 2011 2012 2013 LTM(1)

3Q’14 net profit amounted to Ch$1.741 million compared to Ch$4.008 in 3Q’13.

The decrease is mainly explained by the aforementioned increase in medical loss ratio in the insurance business, slightly higher interest expenses in the hospitals business, negative results in Perú due to the recent opening of the first IntegraMédica Center and the higher inflation effect in the Group financial debt. The abovementioned is offset by the outpatient business in Chile which showed a higher activity within established IntegraMédica Centers.

CAGR (2010 – 3Q’14) = (1%) Ch$ million In s u ra n c e H o s p it a ls Ou tp a tien t In te rn a tion a l Ot h e rs(1 )

3Q’14 vs. 3Q’13 - Consolidated

1. Includes interests, income and interest expenses at CBS holding company level, group’s IT and shared services, central administration expenses and consolidating adjustments among others.

EBITDA Close-up

EBITDA per quarter by business unit

1. Includes consolidated adjustments among others.

2. Includes the one-time income from insurance liquidation in 3Q’11 related to operations interruption in some Integramédica centers as a result of 2010’s earthquake for Ch$1.751 million.

3. Under new EBITDA calculated method. Ch$ millions

Ch$ millions

Last twelve month EBITDA by business unit

(2) (2) (2)

(3) 1Q'12 2Q'123Q'12 4Q'12 1Q'132Q'13 3Q'13 4Q'131Q'14 2Q'14 3Q'14

Cruz Blanca Salud Consolidated(1)

Outpatient

Hospital

Insurance

International

LTM EBITDA (Ch$ millions) 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

Cruz Blanca Salud Consolidated(1) 41.889 40.523 40.347 39.568 38.810 37.294 30.343 32.660 30.680 28.871 37.207 33.024

Outpatient 16.476 17.589 18.650 16.606 17.495 16.796 16.853 17.061 17.689 17.285 17.152 18.206 Hospital 8.996 8.558 7.962 7.099 7.651 7.919 8.006 8.467 8.275 7.888 8.765 8.880 Insurance 16.072 14.040 13.874 16.192 14.154 13.193 5.830 7.736 5.007 4.241 12.717 8.187 International (60) (37) (20) 3 (204) (265) (394) (539) (250) (537) (985) (1.297) Otros(1) 111 183 127 2 (670) (699) (283) (452) (42) (13) (615) (869) Adjustments(2) 294 190 (246) (335) 385 351 331 386 0 7 173 (83) 1Q'12 2Q'123Q'12 4Q'12 1Q'132Q'13 3Q'13 4Q'131Q'14 2Q'14 3Q'14

Cruz Blanca Salud Consolidated(1)

Outpatient

Hospital

Insurance

International

Quarter EBITDA (Ch$ millions) 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

Cruz Blanca Salud Consolidated(1) 8.266 13.343 9.878 8.081 7.508 11.827 2.927 10.398 5.528 10.018 11.263 6.215

Outpatient 3.118 4.305 5.151 4.032 4.007 3.606 5.208 4.240 4.634 3.202 5.076 5.294 Hospital 1.681 1.954 1.769 1.694 2.233 2.222 1.857 2.155 2.041 1.834 2.734 2.270 Insurance 3.502 7.122 3.139 2.427 1.464 6.162 (4.224) 4.334 (1.266) 5.397 4.252 (197) International (60) 23 17 24 (267) (39) (112) (121) 22 (326) (560) (433) Otros(1) 441 (88) (226) (124) (232) (117) 190 (294) 179 (88) (412) (547) Adjustments(2) (417) 27 27 27 303 (7) 7 83 (83) 0 173 (173)

Outpatient Business - Quarter Analysis

The outpatient business maintained a consistent growth track, posting revenues of Ch$34.898 million in 3Q’14, a 10% increase compared to 3Q’13. The main drivers of this increase are:

LTM revenues (Ch$ mm) LTM EBITDA (Ch$ mm) Net financial debt (Ch$ mm) Total outpatient centers (#)

Current (#) New (#)

Avg consultation rooms (#)

130.008 18.206 31.761 29 24 5 2.073 Key figures

(1) Higher activity generated by the beneficiaries of Isapre Cruz Blanca (22%).

(2) The opening of new medical centers, which include: Bandera (April 2013) and Bío Bío (July 2013), Reñaca (July 2013), Plaza Sur (January 2014) Plaza Vespucio (March 2014).

The above resulted in higher revenues in medical consultations (12%), diagnostic exams (7%), ancillary services (14%) and other services (10%). Revenues 1.545 1.598 1.728 1.755 1.962 2.126 2.073 5.662 6.540 6.099 5.945 5.098 5.301 5.612 500 1.000 1.500 2.000 2.500 1.000 2.000 3.000 4.000 5.000 6.000 7.000 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

Consultation rooms (avg)

Monthly revenue per average consultation room (Ch$ th) INTEGRAMÉDICA (Ch$ millions) 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4T'13 1Q'14 2Q'14 3Q'14 Revenues 22.197 25.233 25.401 27.726 26.239 31.356 31.606 31.294 30.008 33.807 34.898 Cost of sales (13.335) (17.060) (12.901) (18.246) (17.645) (20.826) (20.071) (13.922) (18.592) (20.538) (20.706) SG&A (5.569) (4.061) (9.580) (6.788) (6.116) (6.574) (8.651) (13.664) (9.502) (9.980) (9.726) EBITDA 4.305 5.151 4.032 4.007 3.606 5.208 4.240 4.634 3.202 5.076 5.294 EBITDA margin 19,4% 20,4% 15,9% 14,5% 13,7% 16,6% 13,4% 14,8% 10,7% 15,0% 15,2%

Non operating expenses (697) (475) (600) (377) (499) (781) (989) (1.007) (4.385) (2.252) (1.881) Net profit 2.223 2.965 2.464 1.777 1.762 2.955 1.600 2.237 654 1.985 3.287

Regarding expenses, operating costs increased by 3% in 3Q’14 compared to 3Q’13, aligned with the expenses increase.

SG&A expenses increased from Ch$8.651 million in 3Q’13 to Ch$9.726 in 3Q’14 (12%) mainly due higher utilities and rent expenses resulting from the new centers added. While, personnel restructuring, which took place during 2Q’14 (severance payments reached Ch$ 921 million), partially offset the above mentioned SG&A during this period.

Outpatient Business - Quarter Analysis

3Q’14 EBITDA increased compared to the same period of 2013, mainly as a result of:

(1) Better performance of established medical centers. Although this is partially offset by new

centers which had negative EBITDA

contribution due to its fixed costs and its normal maturity curve.

(2) Revenues increased compared to the same period of 2013 mainly in diagnostics exams and ancillary services which have higher

EBITDA margin compared to medical

consultations. EBITDA

(1) New centers consist in 4 recently opened centers which are Bío Bío (July 2013), Reñaca (July 2013), Plaza Sur (January 2014) Plaza Vespucio (March 2014). 9.331 11.484 11.712 11.706 10.848 12.923 13.107 9.493 11.093 10.925 10.787 _10.460 11.160 11.732 3.613 4.431 4.447 4.395 _4.340 4.813 5.068 3.803 4.349 4.521 4.407 _4.361 4.911 4.991 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000

Other Ancillary services

Diagnostic exams Medical consultations

IntegraMédica Revenues (Ch$ millions) EBITDA (Ch$ millions) EBITDA m argin (%) 3Q'14 34.898 5.294 15% New centers(1) 692 -322

HOSPITAL (Ch$ millions) 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Revenues 11.776 12.339 12.543 13.696 13.744 14.000 14.798 15.120 14.423 15.724 15.855 Cost of sales (9.493) (10.219) (10.361) (10.833) (9.904) (9.782) (9.842) (17.160) (11.531) (11.772) (12.009) SG&A (1.008) (1.027) (1.156) (1.378) (2.568) (3.123) (3.598) 3.301 (1.915) (2.092) (2.494) EBITDA 1.954 1.769 1.694 2.233 2.222 1.857 2.155 2.041 1.834 2.734 2.270 EBITDA margin 16,6% 14,3% 13,5% 16,3% 16,2% 13,3% 14,6% 13,5% 12,7% 17,4% 14,3%

Non operating expenses (138) (216) (302) (447) (163) (430) (720) (961) (1.407) (1.315) (2.106)

Net profit 688 723 1.231 1.875 811 388 941 532 300 971 749

Hospital Business - Quarter Analysis

Cruz Blanca Salud´s hospital network reached revenues of Ch$15.855 million in 3Q’14, a 7,4% increase compared to the same period of 2013. The abovementioned growth is mainly explained by: (1) Clínica Antofagasta’s higher average prices, that offsets its slightly lower occupancy rate, (2) a higher activity level in the home hospitalization business Clinical Service (27%) and (3) Clínica San Jose’s higher activity in hospitalization and imaging.

LTM revenues (Ch$ mm) LTM EBITDA (Ch$ mm) Net financial debt (Ch$ mm) Hospitals (#) Avg beds: Normal (#) Critical (#) Occupancy rate (%) 61.122 8.880 40.108 3 360 278 82 54 Key figures

(1) Excludes revenues from Clinical Service

(1) (1) (1) (1) (1)

Overview

EBITDA for the overall hospital business in 3Q’14 amounted to Ch$2.270 million, 5,3% over 3Q’13. This increase is mainly due to: (1) Clínica Antofagasta’s higher average prices; (2) better sales mix in Clínica San José; and (3) the higher activity in bed days of Clinical Service.

3Q’14 net profit was of Ch$749 million.

(2) 286 286 286 286 286 286 273 80 80 80 80 80 80 82 11.906 12.147 12.771 13.022 12.360 13.498 13.764 (1. 000) 1.000 3.000 5.000 7.000 9.000 11.000 13.000 15.000 100 200 300 400 500 600 700 800 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

# Critical beds (avg) # Normal b eds (a vg)

Monthly re ven ue per bed (Ch$ th)

3Q’14 revenue

breakdown per hospital (%)

Inversiones Clínicas CBS, this operation consolidates the home hospitalization business (acquired in July

2012) and the Clínica Santiago project including its start-up costs. Consolidated revenues were of Ch$1.196 million, increasing by 54% compared to the same period of the previous year, with 4.959 bed days in the quarter (+27% compared to 3Q’13). 3Q’14 EBITDA reached Ch$208 million, increasing 117% as the result of (1) the increase of sales; (2) the dilution of fixed costs; and (3) the capitalization of project expenses of Clínica Santiago.

Clínica San José reached revenues of Ch$1.579 million in 3Q’14 increasing 6,2% compared to 3Q’13. This

increase is mainly explained by higher activity in hospitalization and imaging, which are offset by lower occupancy rates from critical beds. EBITDA margin of 3Q’14 was of 8,9%, decreasing 7,2pp compared to 3Q´13, mainly due to the lower gross margin and fixed costs.

Clínica Reñaca generated revenues of Ch$5.525 million in 3Q’14, decreasing 7% compared to 3Q’13. This decrease is mainly explained by the lower activity in hospitalization and surgery. Addtionaly, the occupation rate decreased in 14pp. In the quarter, EBITDA margin was 0,5pp lower over the 10,7% of 3Q’13, mainly because of the lower revenues in 3Q’14.

Clínica Antofagasta in 3Q’14 posted revenues of Ch$7.555 million a 15% increase compared to 3Q’13, mainly

due to better average prices specially in surgery, physiotherapy and x-rays, offsetting the lower occupancy rate (1,9pp lower). 3Q’14 EBITDA margin was of 17,9%, over the 17,4% of 2Q’13, as the result of higher revenues and lower SG&A.

Hospital Business - Quarter Analysis

35% 48% 10% 8% Clínica Reñaca Clínica Antofagasta Clínica San José Clinical Service

Health Insurance business - Quarter Analysis

Health Insurance business posted revenues of Ch$108.507 million in 3Q’14, increasing by 11% compared to 3Q’13. This increase is mainly explained by:

(1) 5% growth in the number of policy-holders, from an average of 349.103 in 3Q’13 to an average of 366.239 in 3Q’14.

(2) 29% increase in GES premium1, in July 2013 which contributes with additional revenues of Ch$1.000 million per month.

(3) An increase in the price of health plans of 2,4% (real terms) in July 2013, which is gradually captured according to the anniversary of each contract.

(4) Higher inflation in the period (LTM 5,1%) which benefited inflation-adjusted contracts.

1. GES is included in each Isapre plan by law and currently covers 80 diseases and medical conditions. The price readjustment can be performed every 3 years, unless new patologies are added before that term. In 2013 11 new patologies were added to the previous 69. The effect of the premium readjustment is captured starting in the date of the price change and actual claims cost increase steadily in the 3 year period, typically resulting in positive margins in the first part of the 3-year period.

LTM revenues (Ch$ mm) LTM EBITDA (Ch$ mm) Net financial debt (Ch$ mm) Branches (#) Avg : Police holders (#) Beneficiaries (#) LTM 3Q’2014 claims rate (%) 108.507 8.187 (34.878) 79 366.239 654.788 87,3 Key figures HEALTH INSURANCE (Ch$ millions) 1Q'12 2Q'12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14 2Q’14 3Q’14 Revenues 82.360 85.045 86.492 89.348 91.512 92.683 98.065 100.374 103.501 107.550 108.507 Cost of sales (66.058) (73.236) (77.084) (79.045) (75.386) (86.816) (83.378) (91.743) (86.774) (90.557) (96.895) SG&A (9.787) (9.336) (7.908) (9.453) (10.872) (11.011) (11.255) (10.955) (12.339) (12.687) (12.802) EBITDA 7.122 3.139 2.427 1.464 6.162 (4.224) 4.333 (1.265) 5.397 4.252 (197) EBITDA margin 8,6% 3,7% 2,8% 1,6% 6,7% (4,6%) 4,4% (1,3%) 5,2% 4,0% (0,2%)

Non operating expenses 872 867 1.072 1.049 530 977 1.031 1.577 1.339 997 1.865

Net profit 5.978 2.789 1.277 1.530 4.638 (3.333) 3.462 (841) 4.626 4.321 451 Revenues 334.501 340.638 349.103 354.645 362.294 362.610 366.239 91,2 90,7 93,6 94,0 94,6 97,3 97,6 70,0 80,0 90,0 100,0 110,0 120,0 130,0 100.000 150.000 200.000 250.000 300.000 350.000 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

Poli cy h olders (Avg)

Health Insurance business - Quarter Analysis

With regards to costs, Claims rate has shown an increasing trend in the period 3Q’13 to 3Q’14. This increase is explained by :

(1) Slightly higher average coverage and frequency of use in ambulatory procedures.

(2) Increase in medical leave expenses due to a higher daily cost as a result of the increase in average affiliates wages, higher daily expenses and higher rate of beneficiaries using medical leave benefit. Up to date, daily medical leave expenses have increased per contract in 8,13pp from 3Q’13.

(3) Slight lower decrease in hospital expenses due to a lower use of plans by beneficiaries. There has been a decreasing trend in hospital expenses since March 2014.

Claims rate (%)

Hospitalizations Outpatient Medical leave Others

SG&A expenses in the quarter grew compared to 3Q’13 due to the fixed costs related to the implementation of Cruz Blanca Salud´s Life Insurance Company, which started its operations in the second half of 2013. Costs and SG&A

3Q’14 EBITDA decreased from Ch$4.333 million in 3Q’13 to a negative figure of Ch$ 197 million in 3Q’14. This is mainly referred to the abovementioned increased claims rate.

86,3% 88,3% 87,4% 88,2% 88,4% 86,1% 87,3% -10, 0% 20, 0% 30, 0% 40, 0% 50, 0% 60, 0% 70, 0% 80, 0% 90, 0% 100, 0% 28,9% 29,3% 29,7% 29,4% 29,5% 29,3% 29,6% 40,4% 41,3% 40,0% 40,4% 40,7% _{39,1% 39,7%} 16,2% 16,6% 16,6% 17,1% 17,2% 17,1% 17,6% 0,9% 1,0% 1,1% 1,3% 1,0% 0,7% 0,4% LTM 1Q'13 LTM 2Q'13 LTM 3Q'13 LTM 4Q'13 LTM 1Q14 LTM 2Q'14 LTM 3Q'14 -5,0% 10, 0% 15, 0% 20, 0% 25, 0% 30, 0% 35, 0% 40, 0% 45, 0%

Regulatory framework(1)

There has not been further developments regarding the bill in Congress. The bill was at the Senate's Health Committee and has not been reviewed in 2014. For the bill to be passed it requires acceptance by the Health Committee of the Senate, the Senate and finally the House of Representatives. All of the above is highly unlikely to occur since the new government has stated that it will withdraw the original bill and substitute it by a new one that will include the opinion of the commission of experts that has been summoned by the new government.

On October 8th_{, this commission presented a non-binding document entitled “Estudio y Propuesta de un Nuevo}

Marco Jurídico para el Sistema Privado de Salud” – “Study and propose for a new legal framework for the Private Health System”, which includes: i) Social Security Plan (PSS) that cover both Fonasa and Isapres; ii) Universal Pooled Fund with public and private funds to cover health benefits (most expensive ones); iii) Inter-Isapre Fund to adjust the portfolio of beneficiaries by risk; iv) Regulation of complementary or additional health insurance by the local authority (Health Superintendence) and v) Creation of an institution that manages Medical leave with a tripartite funding by the employer, the employee and the government. The Ministry of Health has not mentioned when the new bill will be sent to the Congress. However, it is stated that the Ministry may or may not consider this proposal when structuring a new bill.

1. The information contained herein has been prepared to assist interested parties in making their own evaluation of the company and does not purport to be all-inclusive or to contain all the information that a potential counterparty may desire. In all cases, interested parties should conduct their own independent investigation and analysis of the company. Interested parties can only rely on the result of their own investigation and the representations and warranties made in any definitive agreement that may be executed.

International business - Quarter Analysis

Revenues in Cruz Blanca Salud Perú for 3Q’14 amounted to Ch$2.136 million, increasing 155% compared to 3Q’13 explained by the higher accounted revenues from laboratory Anglolab and outpatient network MediPerú which were acquired in July 2013 and September 2013, respectively. However 3Q’14 EBITDA was of Ch$(433) million mainly because of fixed costs due to the opening in march 2014 of the first IntegraMédica outpatient medical center.

4.087 2.067 3.495 9.782 (197) 2.270 5.294 6.215 (0,2%) 14,3% 15,2% 4,1% 4,2% 14,8% 11,1% 7,1% (2.000) 0 2.000 4.000 6.000 8.000 10. 000 12. 000

Insurance Hospital Outpatient Cruz Blanca Salud(1)

Ch$ Millions 7.183 8.443 16.481 31.446 8.187 8.880 18.206 33.024 1,9% _14,5% 14,0% 6,5% 1,9% 15,0% 14,1% 6,1% 0 5.000 10. 000 15. 000 20. 000 25. 000 30. 000 35. 000

Insurance Hospital Outpatient Cruz Blanca Salud(1)

Ch$ Millions

EBITDA - Margins by Business Unit

3Q’13 3Q’14 3Q'13 3Q'14 3Q'13 3Q'14 3Q’13 3Q’14

LTM 3Q’13 LTM 3Q’14 LTM 3Q’13 LTM 3Q’14 LTM 3Q’13 LTM 3Q’14 LTM 3Q’13 LTM 3Q’14

3.870 9.757 7.196 4.382 4.439 12.599 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14

CAPEX

3Q’14 CAPEX was of Ch$12.599 million. The main investment were oriented to Clínica Santiago project in which Ch$9.901 were oriented directly to construction expenses and capitalization of project expenses. Other investments were oriented to the Outpatient business, in which Ch$1.944 million were invested in the habilitation and equipment of new centers which will open during 2015. During 3Q’14, the Hospital business, invested Ch$377 million. CAPEX in the International segment reached Ch$212 million. CAPEX breakdown (Ch$ millions) 2013 = Ch$25.065 million 15% 82% 1%2%1% Outpatient Hospitals Insurance International Others

Cash flow

STATEMENT OF CASH FLOWS, DIRECT METHOD (Ch$ millions)

30-09-2014 / 30-06-2014

30-09-2013 / 30-06-2013

Net Cash flows from (used in)

operating activities 4.458 5.202

Classes of collections from

operating activities 182.512 163.587 Classes of payments (180.767) (165.154)

Other operating collections and

payments 2.712 6.768

Net cash flows from (used in)

investment activities (12.358) 4.844

Cash flows used to obtain control on

subsidiaries or other businesses -

-

Purchase of property, plant and

equipment (13.552)

(4.969)

Other investment activities 1.194 9.813

Net cash flows from (used in)

financing activities 5.552

(9.227)

Net increase (decrease) of cash and cash equivalents, before the effect of changes in exchange rate

(2.349) 819

Effect of changes in the exchange

rate on cash and cash equivalents (797)

(14)

Net Increase (decrease) of Cash

and Cash Equivalents (3.146) 805

Cash and cash equivalents at

beginning of period 27.211 29.466

Cash and cash equivalents at

closing of period 24.065 30.271

3Q’14 net cash flow from operating activities was of Ch$744 lower than the same period of 2013 mainly due to higher payments of services in the Insurance and Outpatient business.

3Q’13 net cash flow from investments activities was of (Ch$12.358) million. This was mainly explained by CAPEX plan, including construction and project expenses of Clinica Santiago.

3’Q14 net cash flow from financing activities reached Ch$5.552 million mainly explained by inflows from long-term loan to finance Clínica Santiago contract.

Stock – Market Information

CRUZBLANCA shares reached a price of Ch$500 on November 5th_{, 2014. From the date of the IPO} (June 23, 2011) up to November 5th_{, 2014, the shares achieved an average daily trade volume of} Ch$483(1) million.

CRUZBLANCA Market Cap

Closing Price 11/5/2014 (Ch$ per share) 500 Number of shares (#) 637.650.000

2014 High (Ch$ per share) 502 Market Cap 11/5/2014 (Ch$ millions) 318.825

2014 Low (Ch$ per share) 415 Free Float (Excludes Bupa as Controlling

Shareholder and the Said Family) 26,27%

Profitability of shares Daily trading volume(1)

Price stock (6/23/2011 – 11/5/2014) 0% YTD'14 (Ch$ millions) 250

Dividend yield 2,4%

1. Excluding the volumes traded at the time of the IPO and Public Tender Offer.

100 100 83 40 60 80 100 120 140 23-06-2011 05-11-2014

CruzBlanca vs IPSA (market index)

Glossary

1. From last report Current account surplus fee and Management fee are included in Gross earnings. See appendix A for further details.

2. Other financial assets include cash investments but exclude the guarantee legally required in Isapre CruzBlanca.

Fundamentals Description Unit 3Q'14 3Q'13

EBITDA(1) Gross earnings - Sales and

Administration Expenses + Depreciation and amortization

Ch$ millions 6.215 9.782

EBITDA Margin EBITDA / Revenue from ordinary activities (Annual)

% 4,1 7,1

Net margin Earnings (loss) / Revenue from ordinary activities (Annual)

% 1,1 2,9

ROE Earnings / Equity (Annual) % 5,6 6,7

Net financial debt / EBITDA( 2)

(Other current financial liabilities + Other non current financial liabilities - Cash and equivalents - Other current and non current financial assets) / EBITDA

Times 3,4 2,7

Definitions Description

Mandatory Health Insurance

Employed workers must choose between enrolling in Fonasa or an Isapre; premiums are deducted from payroll. However, enrollment is voluntary for the self-employed

Fonasa “Fondo Nacional de Salud” or National Health Fund is the public or Government’s health plan which provides healthcare and sick-leave coverage for the very poor and to any person that wishes to enroll. It offers one health plan to all its members, with different copayment levels according to family income

Isapre “Instituciones de Salud Previsional” are private prepaid health insurance plans that cover healthcare and sick leave. They offer many different health plans according to risk factors (age, gender, employment status) and to premiums paid

Plan of Explicit Guarantees in Health (GES)

Coverage of a required number of pathologies, guaranteed by Law, that both

Fonasa and Isapre’s must cover

Current account surplus fee

In compliance with regulations of the Superintendencia de Salud (National Health Authority), these fees are charged to policy holders’ current accounts that hold surplus generated by their health plan premium payments

Management fee Fees charged to other Isapre’s for the management of their portfolios

Fundamentals Description Unit 3Q'14 3Q'13

Used consultation rooms (Integramédica)

Corresponds to the average consultation room available

(Annual) Consultation room 2.073 1.728 Revenues / Consultation rooms

Revenues (Annual) / Used consultations room / Months

Ch$ thousands 5.612 6.099

Bed days (hospitals) Days used in hospitals beds

(Annual)

Days 17.771 19.069

Occupation rate (hospitals) Bed days / maximum utilization capacity of beds (Average

number of beds x days in the year)

% 54,4 56,6

Isapre claims rate (Health care costs + temporary disability claims) / Revenue from ordinary activities

(Annual)

% 87 87

Policy holders Corresponds to the average of policy holders (Annual)

Persons 366.239 349.103

Revenues / Policy holders Revenue / Number of policy holders

Statement of Financial Position

ASSETS (Ch$ thousands)

3Q'14

2013

CURRENT ASSETS

Cash and cash equivalents

24.857.740

38.682.220

Other financial assets, current

22.131.752

16.571.473

Other non-financial assets, current

9.805.519

7.643.037

Trade debtors and other accounts receivable, current

54.568.851

46.767.544

Receivables from related entities, current

374.091

485.993

Inventory

2.414.450

2.407.095

Taxes receivable, current

6.802.629

7.882.987

Total current assets

120.955.032

120.440.349

NON-CURRENT ASSETS

Other financial assets, non current

19.876.244

14.295.813

Other non-financial assets, non current

40.057.114

36.869.057

Investments stated at participation method

302.100

291.369

Intangible assets other than goodw ill

105.207.658

102.943.496

Goodw ill

83.823.627

83.533.337

Property, plant and equipment

131.539.984

116.913.293

Investment property

1.738.310

1.768.412

Deferred tax asset

6.091.847

4.922.321

Total non-current assets

388.636.884

361.537.098

Statement of Financial Position

LIABILITIES (Ch$ thousands)

3Q'14

2013

CURRENT LIABILITIES

Other financial liabilities, current 26.598.311 24.158.186 Trade accounts payable and other payables 96.785.655 88.122.642 Payables to related entities, current 96.929 -Other short-term accruals 26.944.267 23.447.529 Current tax liabilities 800.334 680.009 Current provisions related to employee benefits 2.948.510 856.307 Other non-financial liabilities, current 3.653.891 3.744.340

Total current liabilities 157.827.897 141.009.013

NON CURRENT LIABILITIES

Other financial liabilities, non current 131.923.525 126.672.614 Non current liabilities 4.214 4.214 Deferred tax liability 28.504.177 20.148.123 Other non current, non financial liabilities 1.153.056 1.789.364

Total non current liabilities 161.584.972 148.614.315

Total Liabilities 319.412.869 289.623.327

EQUITY

Issued capital 65.253.465 65.253.465 Accumulated earnings (losses) 51.772.309 53.382.056 Premium in issue of shares 51.378.174 51.378.174 Other reserves 10.199.309 10.601.632

Equity attributable to the controlling party 178.603.257 180.615.327

Non-controlling interests 11.575.790 11.738.792

Total Equity 190.179.047 192.354.119

Statement of Income

Incom e Statem ent (Ch$ thousands) 3Q'14 3Q'13 9M'14 9M'13

Revenue from ordinary activities 151.421.805 136.930.862 439.682.844 393.975.333

Cost of sales (121.825.865) (109.008.416) (345.702.094) (317.941.180)

Gross earnings 29.595.940 27.922.446 93.980.750 76.034.153

Other income, by function - - - -Administration expenses (25.637.260) (20.809.932) (75.946.404) (60.857.198)

Other expenses, by function - - - -Other earnings (losses) (88.927) (253.153) (1.497.975) (416.144) Financial income 987.101 496.608 3.182.369 3.148.412 Financial costs (2.343.571) (2.237.122) (6.956.031) (6.464.502) Exchange rate differences (45.087) (45.271) (79.515) (52.927) Restatement unit income (241.234) (7.662) (1.176.023) (1.879)

Earnings before taxes 2.226.962 5.065.914 11.507.171 11.389.915

Income tax expense (486.371) (1.057.871) (2.097.799) (1.721.694)

Earnings (losses) from continuing operations 1.740.591 4.008.043 9.409.372 9.668.221

Earnings (losses) from continuing operations

Earnings 1.740.591 4.008.043 9.409.372 9.668.221

Earnings attributable to

Earnings attributable to ow ners of the controlling interests 1.586.525 3.798.346 8.980.969 9.097.080 Earnings attributable to non controlling interests 154.066 209.697 428.403 571.141

Earnings (loss) 1.740.591 4.008.043 9.409.372 9.668.221

Earnings per share Earnings per split share

Earnings per split share in continuing operations 2,5 6,0 14,1 14,3 Earnings (loss) per split share in discontinued operations - - -