Financial Statements 30-06-2014

Transcription

CRUZ BLANCA SALUD S.A.
Review of Interim Financial Information
for the six-month periods ended on
June 30, 2014
(With the report of independent accountants)
Disclaimer: The following report is an english translation of the official Financial Statements of June 2014 oriented to
international investors.
CRUZ BLANCA SALUD S.A.
CONTENTS
Report Of The Independent Accountants
Interim Consolidated Classified Statement Of Financial Position
Interim Consolidated Statement Of Income, By Function
Interim Consolidated Statement Of Comprehensive Income
Interim Consolidated Statement Of Changes To Net Equity
Interim Consolidated Statement Of Cash Flows - Direct Method
Notes To The Interim Consolidated Interim Financial Statements
Th$: Amounts presented in thousands of Chilean pesos.
KPMG Auditores Consultores Ltda.
Av. isidora Goyenechea 3520, Piso 2
Las Condes, Santiago, Chile
Teléfono +56 (2) 2798 1000
Fax
+56 (2) 2798 1001
www.kpmg.cl
Report of the Independent Auditors
Mssrs. the Shareholders and Directors
Cruz Blanca Salud S.A.
We have reviewed the interim consolidated statement of financial position herein of Cruz Blanca Salud S.A.
and affiliates at June 30, 2014 and the interim consolidated statement of comprehensive income for the sixmonth period ended on June 30, 2014 and the corresponding statement of changes to net equity and cash
flows for the six month period ended on that date. The interim consolidated statement of comprehensive
income of Cruz Blanca Salud S.A. and affiliates for the six month period ended on June 30, 2013 and the
corresponding statement of changes to net equity and the cash flows for the six month period then ended
were reviewed by other auditors, whose report dated on August 29, 2013 stated that, based on their review,
they had no knowledge of any significant modification that should be made to said statements so that they
comply with IAS 34 of the International Financial Reporting Standards. The consolidated financial statements
of Cruz Blanca Salud S.A. and affiliates at December 31, 2013 prepared in accordance fo the International
Financial Reporting Standards (IFRS) which include the statement of financial position at December 31, 2013
which is presented in the financial statements herein, as well as its related disclosure notes, were audited by
other auditors who issued an unqualified opinion about said financial statements, in their report dated March
7, 2014.
Responsibility of the Administration
Management is responsible for the preparation and reasonable presentation of these financial statements in
accordance with IAS 34 "Interim Financial Information" of the International Financial Reportting Standards
(IFRS). This responsibility includes the design, implementation and maintenance of the relevant internal
control for the preparation and reasonable disclosures of interim financial information, in accordance with
the applicable framework of preparation and presentation of financial information.
Responsibility of the auditor
Our responsibility is to carry our review in accordance with generally accepted audit standards in Chile, as
applicable to reviews of interim financial information. The review of interim financial information consists
mainly of the application of analytical procedures and performing enquiries to those responsible of the
accounting and financial matters. The scope of a review of interim financial information is substantially
lower than that of an audit performed in accordance to generally accepted auditing standards in Chile where
the objective is to express an opinion on the financial information. Therefore, we do not express such an
opinion.
Conclusion
Based on our review, we do not have knowledge of any significant modification that should be made to the
interim financial information herein so that it complies with IAS 34 of the International Financial Reporting
Standards.
Luis Inostroza C.
Santiago, August 28, 2014.
KPMG Ltda.
CRUZ BLANCA SALUD S.A. AND AFFILIATES
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the periods ended June 30, 2014 (unaudited) and 2013 (unaudited), and
December 31, 2013
(A free translation from the original in Spanish)
CONTENTS
INTERIM CONSOLIDATED CLASSIFIED STATEMENT OF FINANCIAL POSITION
INTERIM CONSOLIDATED STATEMENT OF INCOME, BY FUNCTION
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
INTERIM CONSOLIDATED STATEMENT OF CHANGES TO NET EQUITY
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS - DIRECT METHOD
NOTES TO THE INTERIM CONSOLIDATED INTERIM FINANCIAL STATEMENTS
IFRS - International Financial Reporting Standards
IAS - International Accounting Standards
GAAP - Generally Accepted Accounting Principles
$ - Chilean pesos
Th$ - Thousands of Chilean pesos
UF - Unidad de fomento, a constant purchase power restatement unit
adjusted daily based on the prior month’s change in the Consumer
Price Index.
US$ - US dollars
S/. - New Peruvian Sol
Cruz Blanca Salud S.A. and Affiliates
CONTENTS
Page
I
INTERIM CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Assets
Liabilities and Net Equity
INTERIM CONSOLIDATED STATEMENT OF INCOME BY FUNCTION
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS - DIRECT METHOD
II
NOTES TO THE INTERIM CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1.
GENERAL INFORMATION
2.
SUMMARY OF MAIN ACCOUNTING POLICIES
2.1.
Accounting period
2.2.
Basis for preparation
2.3.
Standards, interpretations and amendments adopted by Cruz Blanca Salud S.A. and Affiliates
2.4.
Consolidation basis
2.5.
Segment reporting
2.6.
Conversion of balances, transactions and financial statements nominated in foreign currency
2.7.
Property, plant and equipment
2.8.
Investment property
2.9.
Intangible assets
2.10. Interest cost
2.11.
Impairment of non-financial assets
2.12. Financial assets
2.13. Derivative financial instruments and hedging activity
2.14. Inventory
2.15. Trade debtors and other receivables
2.16. Cash and cash equivalent
2.17. Shareholder’s capital
2.18. Dividends distribution
2.19. Trade creditors and other payables
2.20. Interest-bearing loans
2.21. Corporate income tax and deferred taxes
2.22. Employee benefits
2.23. Provisions
2.24. Classification of balances as current and non-current
2.25. Revenue recognition
2.26. Leases
2.27. Business combinations
2.28. Impairment
2.29. Environment
2.30. Changes in accounting standards
8
8
8
9
11
13
13
13
14
14
15
15
15
17
17
17
18
18
18
18
18
18
19
19
21
21
22
22
22
23
23
3.
FINANCIAL RISK MANAGEMENT
3.1.
Regulatory framework
3.2.
Correlation with economic cycles
3.3.
Competition
3.4.
Currency risk
3.5.
Foreign exchange rate risk
3.6.
Interest rate risk
3.7.
Insurance risk
3.8.
Calculation of fair value of financial instruments
3.9.
Financial risk management
24
24
24
24
24
24
25
25
25
25
1
1
2
3
4
5
6
7
Page
4.
MANAGEMENT ESTIMATES AND JUDGMENT
4.1.
Estimation on goodwill impairment
4.2.
Fair value of derivatives and other financial instruments
4.3.
Impairment of goodwill of investments and intangibles with indefinite useful life
4.4.
Fair value of assets and liabilities
4.5.
Useful lives and residual value
4.6.
Fair value of the provision on health related expenses and labor disability
4.7.
Fair value of non-declared and non-paid social payments (NDNP)
4.8.
Legal proceedings and other contingencies
30
30
30
31
31
31
32
32
32
5.
CASH AND CASH EQUIVALENT
32
6.
CURRENT AND NON-CURRENT FINANCIAL ASSETS AND LIABILITIES
6.1.
Other financial assets
6.2.
Other financial liabilities
6.3.
Derivative instruments
33
33
34
49
7.
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS AND LIABILITIES
7.1.
Other non-financial assets
7.2.
Other non-financial liabilities
49
49
49
8.
TRADE DEBTORS AND OTHER ACCOUNTS RECEIVABLE
8.1. Trade debtors and other accounts receivable, Gross and Net
8.2. Maturities of overdue and not impaired accounts
8.3. Maturities of current accounts
8.4 Impairment of trade debtors and other receivables
8.5 Breakdown of other accounts receivable
50
50
51
51
51
52
9.
BALANCES AND TRANSACTIONS WITH RELATED ENTITIES
9.1. Balances with related entities, not consolidated on a line-by-line basis
9.2. Transactions with related entities
9.3 Key personnel compensations
52
52
53
53
10.
INVENTORY
54
11.
INTANGIBLE ASSETS
11.1.
Breakdown of this accounting area
11.2.
Details of useful lives applied to this accounting area
11.3.
Intangibles roll-forward
11.4.
Intangible amortization charges to income
54
54
55
56
56
12.
INVESTMENTS IN AFFILIATES
12.1. Investments in affiliates
12.2. Summarized information
12.3 Joint arrangements
57
57
57
58
13.
BUSINESS COMBINATIONS
58
14.
GOODWILL
14.1.
14.2. Changes in goodwill
14.3
Impairment test
59
59
60
60
15.
PROPERTY. PLANT AND EQUIPMENT
15.1.
15.2. Conciliation of changes in Property, plant and equipment, by class
At June 30, 2014 and December 31, 2013
15.3. Assets subject to financial leases
15.4. Restrictions on property, plant and equipment
62
62
63
64
64
Page
16.
INVESTMENT PROPERTY
16.1.
Breakdown and roll-forward of this accounting area
16.2. Investment property Income and Expenses
64
64
64
17.
ASSETS AND LIABILITIES FROM CURRENT TAXES
65
18.
EMPLOYEE BENEFITS
66
19.
DEFERRED TAXES AND CORPORATE INCOME TAX
19.1.
Deferred tax balances, by company
19.2. Origin of deferred taxes
19.3. Changes in deferred taxes in the statement of financial position
19.4. Income tax result
19.5. Reconciliation of calculation of income tax
67
67
68
68
69
69
20.
TRADE ACCOUNTS PAYABLE AND OTHER PAYABLES
69
21.
PROVISIONS
21.1.
Breakdown of the accounting area
21.2. Changes in provisions
70
70
70
22.
NET EQUITY
22.1. Subscribed and paid-in capital
22.2. Shares
22.3. Dividends
22.4. Management of capital
22.5. Other reserves
22.6. Minority interest
70
70
70
71
71
71
72
23.
ORDINARY INCOME
73
24.
BREAKDOWN OF SIGNIFICANT INCOME ACCOUNTS
73
25.
FINANCIAL COSTS AND OTHER
74
26.
OTHER GAINS (LOSS)
74
27.
EARNINGS PER SHARE
75
28.
SEGMENT REPORTING
28.1. Assets and liabilities by segment
28.2. Statement of income by segment
28.3. Statement of cash flows by segment
75
79
79
82
29.
CONTINGENCIES. LAWSUITS AND OTHER
83
30.
GUARANTEES PLEDGED TO THIRD PARTIES. OTHER CONTINGENT
ASSETS AND LIABILITIES AND OTHER COMMITMENTS
84
31.
PERSONNEL DISTRIBUTION
91
32.
ENVIRONMENT
91
33
LOCAL AND FOREIGN CURRENCY
93
Page
34.
NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
95
35.
SIGNIFICANT EVENTS
95
36.
SUBSEQUENT EVENTS
100
At June 30, 2014 (unaudited) and December 31, 2013
Presented in thousands of Chilean pesos
ASSETS
NOTE
06/30/2014
12/31/2013
Th$
Th$
CURRENT ASSETS
Cash and cash equivalents
5
27,210,902
19,514,037
Other financial assets, current
6.1
11,615,013
26,074,375
Other non-financial assets, current
7.1
8,617,215
7,643,037
Trade debtors and other accounts receivable, current
8.1
50,800,836
46,853,452
Accounts receivable from related entities, current
9.1
366,560
485,993
Inventory
10
2,263,486
2,407,095
Tax assets, current
17
4,832,009
7,882,987
105,706,021
110,860,976
6.1
31,126,489
23,961,093
Other non-financial assets, non-current
7.1
38,275,998
36,869,057
Investments accounted for using the equity method
12.3
300,295
291,369
Intangible assets other than goodw ill
11.1
105,029,981
102,943,496
Goodw ill
14.1
83,720,463
83,533,337
15.1
120,658,439
116,913,293
Investment property
16.1
1,748,344
1,768,412
Deferred tax assets
19.1
Total Assets, Current
NON-CURRENT ASSETS
Other financial assets, non-current
5,364,570
4,922,321
Total assets, non-current
386,224,579
371,202,378
TOTAL ASSETS
491,930,600
482,063,354
1
INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At June 30, 2014 (unaudited) and December 31, 2013
LIABILITITES
06/30/2014
12/31/2013
Th$
Th$
6.2
24,346,326
24,158,186
20
97,298,252
88,253,418
21.1
25,916,173
23,447,529
635,140
NOTE
CURRENT LIABILITIES
Other financial liabilities, current
Trade creditors and other accounts payable
Other short-term provisions
Tax liabilities, current
17
238,404
Provisions for employee benefits, Current
18
1,746,192
856,307
Other non-financial liabilities, current
7.2
3,311,402
3,744,340
152,856,749
141,094,920
126,672,614
Total liabilities, current
NON-CURRENT LIABILITIES
Other financial liabilities, non-current
6.2
121,322,739
Other accounts payable, non-current
20
4,214
4,214
20,459,358
20,148,123
Deferred tax liability
19.1
Other non-financial liabilities, non-current
7.2
1,234,778
1,789,364
Total liabilities, non-current
143,021,089
148,614,315
Total Liabilities
295,877,838
289,709,235
65,253,465
65,253,465
51,378,174
51,378,174
9,987,587
10,601,632
57,511,618
53,382,056
184,130,844
180,615,327
EQUITY
Issued capital
22
Premium on issue of shares
Other reserves
22.5
Accumulated earnings (loss)
Equity attributable to ow ners of the controlling party
Non-controlling interest
22.6
11,921,918
11,738,792
EQUITY
196,052,762
192,354,119
TOTAL EQUITY AND LIABILITIES
491,930,600
482,063,354
2
INTERIM CONSOLIDATED STATEMENT OF INCOME BY FUNCTION
For the six-month periods ended June 30, 2014 and 2013 (unaudited)
INCOME STATEMENT BY FUNCTION
NOTE
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014
06/30/2013
06/30/2014
06/30/2013
Th$
Th$
Th$
Th$
Revenue from ordinary activities
23.1
288,261,039
257,044,471
147,700,681
131,308,396
Cost of sales
24.1
(223,876,229)
(208,932,764)
(114,507,888)
(111,454,346)
64,384,810
48,111,707
33,192,793
19,854,050
(50,309,144)
(40,047,266)
(25,604,575)
(20,307,950)
14,075,666
8,064,441
7,588,218
(453,900)
Gross earnings
Management expenses
24.1
Earnings (loss) from operating activities
Other income (loss)
26
(1,409,048)
(162,991)
(951,777)
Financial income
Financial costs
25
25
2,195,268
(4,612,460)
2,651,804
(4,227,380)
1,327,454
(2,311,213)
Exchange rate fluctuation
25
(34,428)
(7,656)
(40,683)
4,055
Results due to restatement units
25
(934,789)
5,783
(792,576)
(22,952)
(1,072,153)
Earnings before taxes
Income tax expense
19.4
Earnings (loss)
28,799
1,510,189
(2,138,344)
9,280,209
6,324,001
4,819,423
(1,611,428)
(663,823)
(652,942)
603,757
7,668,781
5,660,178
4,166,481
(468,396)
Earnings (loss) attributable to
Earnings (loss) attributable to ow ners of the controlling party
Earnings (loss) attributable to non-controlling interests
22.6
Earnings (loss)
7,394,444
5,298,734
3,992,536
274,337
361,444
173,945
(595,332)
126,936
7,668,781
5,660,178
4,166,481
(468,396)
Earnings per share $
Earnings (loss) per basic share
Earnings (loss) per basic share in continuing operations
27
Earnings (loss) per basic share in discontinued operations
Earnings (loss) per basic share
11.60
8.31
6.26
0.00
0.00
0.00
(0.93)
0.00
11.60
8.31
6.26
(0.93)
11.60
8.31
6.26
(0.93)
0.00
0.00
0.00
0.00
11.60
8.31
6.26
(0.93)
Earnings (loss) per dilluted share
Earnings (loss) per dilluted share in continuing operations
Earnings (loss) per dilluted share in discontinued operations
Earnings (loss) per dilluted share
27
3
STATEMENT OF COMPREHENSIVE INCOME
NOTE
Earnings (loss)
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014
06/30/2013
06/30/2014
06/30/2013
Th$
Th$
Th$
Th$
7,668,781
5,660,178
4,166,481
(468,396)
Com ponents of Other Com prehensive Incom e, Before Taxes
Earnings (loss) from cash flow hedging, before taxes
(1,290,412)
Earnings (loss) from conversion exchange rate differences, before taxes
682,218
48,915
(330,559)
(492,324)
(99,616)
64,726
(23,721)
(3,273)
(2,882)
104,975
Incom e Taxes related to com ponents of com prehensive incom e
Income tax related to cash flow hedging
(5,832)
Addition of incom e taxes related to com ponents of com prehensive incom e
Total com prehensive incom e
(614,026)
(53,974)
(268,715)
(411,070)
7,054,755
5,606,204
3,897,766
(879,466)
6,780,418
5,244,760
3,723,821
(1,006,402)
274,337
361,444
173,945
7,054,755
5,606,204
3,897,766
Com prehensive incom e attributable to
Comprehensive income attributable to Controlling Interests
Comprehensive income attributable to Non-Controlling Interests
Total Com prehensive Incom e
22.6
126,936
(879,466)
4
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
At June 30, 2014 and 2013(unaudited)
In thousands of Chilean pesos
Equity
attributable
Accum ulated
to the
Total Other
earnings
ow ners of
Reserves
(loss)
the
controlling
party
Th$
Th$
Th$
Other reserves
Statem ent of changes to net equity
Prem ium on
Conversion
issue of
foreign exchange
shares
rate differences
reserve
Issued
Capital
Th$
Th$
Th$
Cash flow
hedging
reserves
Other
reserves
Th$
Th$
Noncontrolling
interest
Net equity,
total
Th$
Th$
Opening balance at 01/01/2014
65,253,465
51,378,174
(82,337)
(4,917,556)
15,601,525
10,601,632
53,382,056
180,615,327
11,738,792
192,354,119
Restated Equity
65,253,465
51,378,174
(82,337)
(4,917,556)
15,601,525
10,601,632
53,382,056
180,615,327
11,738,792
192,354,119
Com prehensive incom e
Earnings (loss)
Other comprehensive income
0
0
0
0
0
0
0
682,218
682,218
0
(1,296,244)
(1,296,244)
0
0
0
0
(614,026)
(614,026)
7,394,444
0
7,394,444
7,394,444
(614,026)
6,780,418
274,337
0
274,337
7,668,781
(614,026)
7,054,755
Dividends
Other increase (decrease) in net equity
Total changes in equity
0
0
0
0
0
0
0
0
682,218
0
0
(1,296,244)
0
(19)
(19)
0
(19)
(614,045)
(3,264,882)
0
4,129,562
(3,264,882)
(19)
3,515,517
0
(91,211)
183,126
(3,264,882)
(91,230)
3,698,643
65,253,465
51,378,174
599,881
(6,213,800)
15,601,506
9,987,587
57,511,618
184,130,844
11,921,918
196,052,762
Changes in Equity
Closing balance at 06/30/2014
Statem ent of changes to net equity
Issued
Capital
Th$
Prem ium on
Conversion
issue of
foreign exchange
shares
rate differences
reserve
Th$
Th$
Equity
attributable
Accum ulated
to the
Total Other
earnings
ow ners of
Reserves
(loss)
the
controlling
Th$
Th$
Th$
Other reserves
Cash flow
hedging
reserves
Other
reserves
Th$
Th$
Noncontrolling
interest
Net equity,
total
Th$
Th$
65,253,465
51,378,174
(88,039)
(3,903,214)
15,525,137
11,533,884
47,867,574
176,033,097
14,181,488
190,214,585
Restated Equty
65,253,465
51,378,174
(88,039)
(3,903,214)
15,525,137
11,533,884
47,867,574
176,033,097
14,181,488
190,214,585
Changes in equity
Com prehensive incom e
Earnings (loss)
Other comprehensive income
0
0
0
0
0
0
0
(99,616)
(99,616)
0
45,642
45,642
0
0
0
0
(53,974)
(53,974)
5,298,734
0
5,298,734
Dividends
Other increase (decrease) in net equity
Total changes in equity
0
0
0
0
0
0
0
0
(99,616)
0
0
45,642
0
47,919
47,919
0
47,919
(6,055)
(3,304,211)
0
1,994,523
11,527,829
49,862,097
65,253,465
51,378,174
(187,655)
(3,857,572)
15,573,056
5,298,734
(53,974)
5,244,760
361,444
0
361,444
5,660,178
(53,974)
5,606,204
(3,304,211)
47,919
1,988,468
0
(67,041)
294,403
(3,304,211)
(19,122)
2,282,871
178,021,565
14,475,891
192,497,456
5
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS, DIRECT METHOD
STATEMENT OF CASH FLOWS, DIRECT METHOD
NOTE
01/01/2014
01/01/2013
06/30/2014
Th$
06/30/2013
Th$
Cash flow s proceeds from (used in) operating activities
Classes of collections from operating activities
Collection of sales of goods and rendering of services
Collections from premiums and benefits, annuities and other subscribed policy benefits
Other collections from operating activities
330,156,598
1,753,635
20,335,225
304,701,721
0
14,131,764
(257,447,890)
(42,124,864)
(633,829)
(32,622,359)
(246,326,266)
(34,920,753)
0
(17,413,198)
(4,113,395)
(25,443)
927,013
1,158,539
1,717
(7,072,760)
0
955,517
(1,159,878)
(2,356)
17,364,947
12,893,791
(5,814,826)
(366,102)
53,519,315
(41,839,334)
(3,210,000)
1,182,794
553
(824)
(5,011,970)
(591,604)
13,219,069
(40,794,994)
0
794,660
0
27,987
3,471,576
(32,356,852)
0
4,068,406
4,068,406
0
(8,290,795)
(3,644,978)
(114,982)
(5,954,365)
10
14,939,998
2,970,970
17,910,968
45,143
(7,022,833)
(3,172,998)
0
(4,210,515)
8,582
(13,936,704)
3,558,347
6,899,819
(15,904,714)
Classes of paym ents
Payments to suppliers for the procurement of goods and services
Payments to and on behalf of employees
Payments for premiums and benefits, annuities and other obligations derived from subscribed policies
Other payments from operating activities
Other operating collections and paym ents
Dividends paid
Interest paid
Interest collected
Income tax return (payment)
Other inflow s (outflow s) of cash
Net Cash flow s from (used in) operating activities
Cash flow s from (used in) investm ent activities
Acquisition of property, plant and equipment
Acquisition of intangibles
Proceeds from other long-term assets
Acquisition of other long-term assets
SISP guarantee
Interests received
Income tax reimbursement (paid)
Other cash inflow s (outflow s)
Net cash flow s from (used in) investm ent activities
Cash flow s from (used in) financing activities
Inflow s from long-term loans
Inflow s from short-term loans
Total inflow s from loans
Loans from related entities
Payment of loans
Payment of liabilities from financial leases
Dividends paid
Interests paid
Net cash flow s from (used in) financing activities
Net increase (decrease) of cash and cash equivalents, before the effect of changes in
exchange rate
Effect of changes in the exchange rate on cash and cash equivalents
797,046
Net Increase (decrease) of Cash and Cash Equivalents
7,696,865
Cash and cash equivalents at beginning of period
Cash and cash equivalents at closing of period
5
13,615
(15,891,099)
19,514,037
45,356,946
27,210,902
29,465,847
6
Cruz Blanca Salud S.A. And Affiliates
Notes To The Interim Consolidated interim financial statements
For the period ended June 30, 2014 (unaudited)
__________________________________________________________________
NOTE 1. - GENERAL INFORMATION
Cruz Blanca Salud S.A. (from hereon the “Company” or the “Group”) is a public Corporation, entered
into the Securities Registry of the Superintendence of Securities and Insurance under number 1,075. The
Company’s address is Cerro Colorado N° 5240, Torre Del Parque II, office 11 B, Las Condes, in the city of
Santiago, Republic of Chile. The Company was established on December 11, 2007 and its purpose is to
perform investments in financial assets, tangible and intangible, shares, bonds, medium term financing
instruments, and other financial instruments, rights in companies and specifically in those companies
whose business is the rendering of services in the Health Care or financing of health procedures or
benefits, or developing activities that are related or complementary to the Health Care industry, both in
Chile and abroad; manage, transfer, exploit and obtain gains from said services and; to perform all sorts
of acts and to enter into any contracts necessary for the fulfillment of the Company’s purpose or in the
development of its business.
Cruz Blanca Salud S.A.’s controlling party is Grupo Bupa Sanitas, through the company GBS Chile Uno
SpA, which owns 56.34% of the Company’s shares. GBS Chile Uno SpA is a company established under
the laws of the Republic of Chile, whose only contributor is Grupo Bupa Sanitas Chile S.L., a company
established and existing in accordance to the laws of the Kingdom of Spain (from hereon "Bupa
Sanitas").
Cruz Blanca Salud S.A. and its affiliate companies are companies of the health care industry. Its main
business areas are:





Insurance area
Hospital Health Care area
Outpatients Health Care area
International area (providers of outpatients healthcare services)
Other services
Its main affiliates are:











Isapre Cruz Blanca S.A.
Integramédica S.A.
Promotora de Salud S.A.
Desarrollo e Inversiones Médicas S.A.
Inversiones Clínicas Pukará S.A.
Corporación Médica de Arica S.A.
Servicios de Gestión Ltda.
Inversiones CBS SpA.
Cruz Blanca Salud Internacional S.A.
Inversiones Clínicas CBS S.A.
Cruz Blanca Compañía de Seguros de Vida S.A.
These Consolidated Interim Financial Statements correspond to the period ended June 30, 2014, which
were approved by the Board in the meeting held on August 28, 2014. The corresponding meetings of the
board of directors approved the financial statements of the affiliates.
The Company’s financial statements, corresponding to the period ended on December 31, 2013, were
approved by the Board in the meeting held on March 7, 2014.
7
NOTE 2. - SUMMARY OF THE MAIN ACCOUNTING POLICIES
Following is a description of the main accounting policies adopted in the preparation of these
Consolidated interim financial statements. These policies were applied consistently on the financial
statements herein presented.
These Consolidated interim financial statements are presented in thousands of Chilean pesos.
These Consolidated interim financial statements have been prepared according to International
Financial Reporting Standards issued by the International Accounting Standards Board (“IASB”).
The accounting policies adopted in the preparation of these Consolidated interim financial statements
have been designed following the IFRS current At June 30, 2014 and applied consistently to all the
periods presented in these consolidated interim financial statements.
2.1. Accounting period
The Consolidated Interim Financial Statements (from hereon, “financial statements”) cover the
following periods:

Statement of Financial Position, for the periods ended June 30, 2014 and December 31, 2013.

Statement of Changes in Net Equity and Statement of Cash Flows, Direct Method, for the periods
ended June 30, 2014 and 2013.

Statement of Income by Function and Statement of Comprehensive Income for the periods ended on
June 30, 2014 and 2013, for comparison purposes.
2.2. Basis for preparation
The interim consolidated financial statements have been prepared on the historic cost basis, except for
those items recorded at fair value such as is the case of the derivative instruments. The book value of
liabilities that qualify for hedge accounting is adjusted to reflect the fair value with regards to the hedged
risks.
In the preparation of the Consolidated interim financial statements critical accounting estimates have
been made to quantify certain assets, liabilities, income and expense. It is also required from
Management that they exercise judgment in the application of the accounting policies of the Cruz Blanca
Salud Group.
Minor reclassifications to the financial statements of the prior period were made for comparison
purposes. These reclassifications arise of recurring analyses performed by management to the items of
trade accounts receivable and payable, of deferred taxes, of other financial and assets and liabilities, and
other, always with the spirit of presenting uniform and comparative financial information of Group CBS.
The reclassifications do not involve changes in accounting criteria or estimates, in accordance with what
is set forth in IAS 8.
During this accounting period and in light of the accounting policies of the new controlling party Grupo Bupa Sanitas - certain reclassifications and adequations of policies have been made.
Concept
Reclassification or adoption of policies of new controlling party
Financial instruments
Reclassified according to their maturity
Other income, by function
Reclassified under ordinary income
Bank fees
Reclassified from financial costs to management expenses
Restructuring termination payments
Reclassified from expenses by function to other earnings / loss
Amortizationof client portfolio
Reclassified from management expense to other earnings / loss
8
The areas that require a greater degree of judgment or complexity, as well as areas where assumptions
and estimates are significant for these financial statements, are described in Note 4.
2.3. Standards, interpretations and amendments adopted by Cruz Blanca Salud S.A. and
its affiliates
The assessment of the impact of the new standards and interpretations in the Group and the Parent
Company are presented in this section.
New accounting decisions:
a) The following new standards, interpretations and amendments have been issued, but
are not in force as of their application date.
New Accounting Standards
Compulsory
application date
IFRS 9 “Financial Instruments”
This Standard introduces new requirements for the classification and
measurement of the financial assets, allowing its early application. The
standard requires that all financial assets be classified entirely based on the
entity's business model for the management of the financial assets and the
characteristics of the contracted cash flows of the financial assets. Under
this standard the financial assets are measured either at amortized cost or
at fair value. Only those financial assets classified at their amortized value
will be tested for impairment. Its effective application is for the annual
periods beginning on or after January 1, 2015. Its early adoption is allowed.
There is no official
compulsory application date
IFRS 15 "Revenue from contracts with clients"
This Standard provides a unique five-step model based on principles
which will be applied to all client contracts. These are the steps:





Identify the client contract
identify the performance obligations of the contract
Establish the transaction price
Allocate the transaction price to the performance obligations of the
contracts
Recognize income when the entity satisfies a performance
obligation.
Annual periods beginning
on or after January 1, 2017.
Early adoption is allowed.
The standard offers guidance about topics such as the point for revenue
recognition and divers related matters. New revenue disclosures are
introduced.
The Company’s Management does not foresee that the adoption of the
abovementioned standards, amendments and interpretations will have
any significant impact in the consolidated interim financial statements
of the Company in the period when they are first applied.
9
b) Improvements and amendments to accounting statements
New IFRS and improvements
Compulsory for the
periods started on
IAS 36 "Impairment"
Disclosure of the recoverable value for non-financial assets
Annual periods beginning on
or after January 1, 2014.
IAS 39" Financial Instruments: Recognition and Measurement"
Novation of derivatives and continuation of hedge accounting.
Annual periods beginning
on or after January 1, 2014.
IAS 27 "Separate Financial Statements," IFRS 10 "Consolidated
Financial statements" and IFRS 12 " Disclosure of Interests in
Other Entities."
All the modifications are applicable to Investment Entities, setting an
exception to the accounting treatment and eliminating the consolidation
requirement.
IAS 32 and IFRS 7
The modification focused in four main areas: the meaning of "currently has
a legal right of compensation," the application and liquidation of the
simultaneous realization, the compensation of the guarantee amounts and
the measurement unit for the application of the compensation
requirements.
IAS 19 Employee benefits - contributions from employees
or after July 1, 2014
(January 1, 2015). Early
adoption is allowed
IFRS 11 "Joint Arrangements"
Early adoption is allowed
IAS 16 "Property, plant and equipment," IAS 38 "Intangible
assets":
Clarification
of
acceptable
depreciation
and
amortization methods.
Early adoption is allowed
New interpretations
IFRIC 21, Liens
The Company’s Management does not foresee that the adoption of the abovementioned standards,
amendments and interpretations will have any significant impact in the consolidated interim financial
statements of the Company in the period when they are first applied.
10
2.4.
a.
Consolidation basis
Subsidiaries or affiliates
Subsidiaries are all entities over which Cruz Blanca Salud has control. Control is achieved where the
Company is exposed to, or has rights on, the variable returns from its involvement with the company
where it has an interest, and has the ability to affect those returns through its power over the investee.
Specifically, the Company controls an investee if and only if all of the following can be observed:

power over the investee (meaning, existing rights that give it the ability to direct the relevant
activities of the investee, that is, activities that significantly affect the returns of the investee).

exposure, or rights, to variable returns from its involvement with the investee.

ability to use its power over the investee to affect the amount of income of the investor.
When the Company has less than a majority of voting rights in an investee, the Company has power over
the investee when these voting rights are sufficient to give in practice the ability to unilaterally direct the
relevant activities of the investee. The Company evaluates all facts and circumstances to assess whether
the voting rights in an investee are sufficient to give it power, including:

the number of voting rights that the investor holds in relation to the number and spread that
other vote holders hold;

potential voting rights held by the investor, other vote holders or other parties;

rights arising from other contractual arrangements;

any additional facts and circumstances indicate that the investor has or does not have, as well as
the current ability to direct the relevant activities at the time these decisions need to be taken,
including the voting behavior patterns observed in previous shareholder meetings.
The Company reassesses whether it has control on an affiliate if facts and circumstances indicate that
there have been changes in one or more of the three control elements mentioned above.
The consolidation of an affiliate will start from the date when the investor gains control of the investee
and ceasing when it loses control over it. To account for the acquisition of a subsidiary, Cruz Blanca
Salud uses the acquisition method.
The acquisition cost is the fair value of the assets transferred, equity instruments issued and liabilities
incurred or assumed at the transaction date. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination is initially measured at fair value at the acquisition date.
The excess of cost of acquisition over the fair value of the share of Cruz Blanca Salud in the identifiable
net assets acquired is recognized as goodwill. If the cost of acquisition is less than the fair value of the
net assets of the subsidiary acquired, the identification and measurement of assets, liabilities and
contingent liabilities of the purchaser, and the measurement of the cost of the acquisition will be
reconsidered, the difference, which continues to exist, is recognized directly in the income statement.
Subsidiary companies are consolidated using the line by line combination of all assets, liabilities,
income, expenses and cash flows.
Non-controlling interests in subsidiaries are included in the assets of the parent company.
Intercompany transactions, balances and unrealized gains on transactions between Group companies
are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. When necessary, to ensure consistency with the policies adopted by
Cruz Blanca Salud, accounting policies of subsidiaries are changed.
11
b.
Transactions and non-controlling interests
In the case of an acquisition of non-controlling interest, the difference between any paid retribution and
the corresponding interest in the book value of the acquired net assets of the subsidiary is recognized
through Equity. Gains and losses from interest sales, as long as control is retained, are also recorded
through Equity.
c.
Associate companies
Associate companies are all those entities over which Cruz Blanca Salud S.A. has a significant influence
but does not hold control, and is generally represented with a share of 20% to 50% of the voting rights.
Investments in associates are accounted for using the equity method and are initially recorded at cost.
The investment of the Group in associates includes the goodwill identified at the time of acquisition, net
of any accumulated impairment loss.
The interest in gains or losses subsequent to the acquisition of its associates is recorded through income,
and the interest in the equity movements subsequent to the acquisition that are not income are carried
to the corresponding equity reserves (and are reflected as it corresponds in the statement of other
comprehensive income).
When the interest in the losses of an associate is equal or higher than the book value of the investment
in said associate, including any other non-secured account receivable, Cruz Blanca Salud S.A. does not
recognize additional losses, unless it has incurred in liabilities or performed payments on behalf of the
associate.
Unrealized earnings due to transactions between the head company and Group’s companies are
eliminated in proportion to the interest percentage in said companies. Unrealized losses are also
eliminated, except if the transaction gives evidence of an impairment loss of the transferred asset. When
necessary to ensure the uniformity with the policies adopted by the Company, the accounting policies of
the associate are modified.
Gains or losses from a share split in associates are recognized through income.
d.
Joint arrangements
Joint arrangements are included in the financial statements using the equity method as described in IAS
28, paragraph 11.
e.
Affiliate entities
e.1. The companies included in consolidation are the following:
Tax Id
Num ber
96.501.450-0
76.098.454-K
96.562.210-1
96.562.220-9
96.529.970-K
96.613.220-5
76.785.130-8
76.117.164-K
76.188.053-5
76.238.779-4
76.282.191-5
Ow nership percentage
Com pany Nam e
Integramédica S.A.
Inversiones CBS SPA
Cruz Blanca Salud Internacional S.A
Inversiones Clinicas CBS S.A.
Cruz Blanca Compañía de Seguros de Vida S. A.
Direct
06/30/2014
Indirect
Total
Direct
12/31/2013
Indirect
Total
95.16600%
99.99900%
53.15300%
71.51000%
85.43000%
68.97200%
99.00000%
100.00000%
99.99999%
99.99400%
99.99300%
3.80000%
0.00000%
0.00000%
11.52700%
0.00000%
0.00000%
1.00000%
0.00000%
0.00001%
0.00600%
0.00700%
98.96600%
99.99900%
53.15300%
83.03700%
85.43000%
68.97200%
100.00000%
100.00000%
100.00000%
100.00000%
100.00000%
95.16600%
99.99900%
53.15300%
71.51000%
85.43000%
68.97200%
99.00000%
100.00000%
99.99999%
99.99300%
99.990000%
3.80000%
0.00000%
0.00000%
11.52700%
0.00000%
0.00000%
1.00000%
0.00000%
0.00001%
0.00700%
0.01000%
98.96600%
99.99900%
53.15300%
83.03700%
85.43000%
68.97200%
100.00000%
100.00000%
100.00000%
100.00000%
100.00000%
On June 5, 2014 Inversiones Clínicas made a capital increase of $1,700,000,000 by issuing 1,700,000
shares which were entirely subscribed and paid for by CBS. This explains the change in distribution of
direct and indirect ownership percentage.
12
2.5.
Segment reporting
IFRS 8 requires that the entities adopt the “management approach” to disclose information on the
results of its operating segments. Segment reporting is disclosed in a way consistent with the internal
reports issued to those responsible of taking the relevant operating decisions. Said executives are those
responsible of allocating the resources and assessing the performance of the operational segments,
which have been identified as: Health Insurance, Hospital Health Provider, Outpatients Health
Providers and Other, for which the strategic decisions are made. This information is disclosed in Note
28.
2.6.
Conversion of balances, transactions and financial statements nominated in
foreign currency
a.- Presentation currency and functional currency
The items included in the financial statements of each of the Group’s entities are valued using the
currency of the main economic environment where the entity operates (“functional currency”). The
consolidated interim financial statements are presented in Chilean pesos, which is the functional and
presentation currency of the Parent company and of its affiliates. In the case of the Peruvian subsidiary,
its functional currency is the Peruvian New Sol.
b.- Transactions and balances
Transactions in foreign currency are converted to the functional currency using the exchange rates
current at the date of the transaction. Gains and losses in foreign currency that result from the
settlement of these transactions and the conversion at the closing exchange rates of the monetary assets
and liabilities nominated in foreign currency are carried through income, except when they should be
deferred through net equity, as is the case of results from strategies of cash flows hedging.
c.- Exchange rates
Assets and liabilities in foreign currency and those set in UF are presented at the following exchange
rates and closing values:
2.7.
Date
$ / US$
$ / S/.
$ / UF
06/30/2014
552.72
197.62
24,023.61
12/31/2013
524.61
187.49
23,309.56
06/30/2013
507.16
182.44
22,852.67
Property, plant and equipment corresponds mainly to land, constructions, infrastructure works,
vehicles, machinery and equipment, medical equipment, and are recorded at cost minus accumulated
depreciation and impairment losses, except in the case of the land, which are disclosed net of
impairment losses, if any.
Expansion or upgrade costs that represent an increase in the capabilities or useful life of the goods will
be capitalized as a greater cost.
Periodic maintenance, conservation and repair expenses are carried through income in the period they
are incurred.
Works in progress during the construction period include financial expenses that can be directly
attributed to the acquisition or construction and the personnel expenses related directly and other of
operating nature attributable to the construction. Works in progress are transferred to operating assets
once the period of trials is completed and they are available for use, moment when the depreciation
begins.
Depreciation is calculated on a straight-line basis over the estimated years of technical and / or
economic useful life of the assets, unless in special cases where to better represent the economic reality
it is required to use consumption units.
13
Residual values of the assets, useful lives and depreciation methods are reviewed and adjusted if
required, at each year’s closing.
Estimated useful lives for property, plant and equipment are contained in the following ranges,
considering the characteristics of the assets in each class:
Estim ated useful lives or depreciation rates used
Buildings
Plant and equipment
IT equipment
Fixed installations and accessories
Motor vehicles
Leasehold improvement
Other property, plant and equipment
Minim um
years
Maxim um
years
30
3
3
3
6
4
2
71
17
10
20
14
10
60
Gains and losses in the sale of Property, plant and equipment, are calculated comparing the proceeds
obtained with the corresponding book value and are carried through income. When selling assets
appraised according to IAS 16, the values recorded as revaluation reserves are transferred to
accumulated results.
2.8.
Investment property
This item includes mainly land, buildings and constructions held with the purpose to obtain income in
future sales, appreciation or exploitation under a lease regime, and are not used by the Group’s
companies. Said assets are valued initially at their acquisition cost, plus all other expenses incurred that
can be directly allocated. Subsequently, they are valued periodically at their appraisal value, bet of
depreciation and impairment of value. Management has defined periodicity to be a frequency of two
years. Depreciation is calculated on a straight-line basis in function of the useful life of the
corresponding goods.
2.9.
Intangible assets
a.- Goodwill
Goodwill represents the excess of the acquisition cost over the fair value of the Group’s interest in the
identifiable net assets of the affiliate or associate acquired on the transaction date. Goodwill related to
the acquisition of affiliates is recorded under Goodwill.
Goodwill related to acquisition of associates is included under Investment in Associates and is submit to
fair value impairment tests with the total balance of the associate. Goodwill recognized separately is
submitted to value impairment tests annually, and is valued at its cost less accumulated impairment
losses. Gains and losses from the sale of an entity include the book values of the goodwill related to the
sold entity.
Goodwill is allocated to the cash generating units in order to perform impairment tests. The allocation is
performed among those cash generating units or groups of cash generating units that are expected to
obtain benefits from the business combination that generated the goodwill.
A bargain purchase, or the higher cost acquired arising from the acquisition of an investment or a
business combination, is debited directly through the Income Statement, under Other Gains (Losses).
b.- Software
Purchased software licenses are capitalized on the basis of costs incurred to acquire and prepare them to
use the specific program. These costs are amortized linearly over their estimated useful lives.
Expenses related with development or maintenance of software are recognized as an expense when
incurred. Costs directly related with the production of unique and identifiable software controlled by the
14
Company, and that it is probable that may generate economic benefits greater than the costs over more
than one year, are recognized as Intangible Assets. Direct costs include personnel expenses that develop
the software and a reasonable percentage of overheads.
The development costs of software recognized as assets are amortized over their estimated useful lives.
c.- Trademarks
The Group’s trademarks correspond to Intangible Assets of indefinite useful life that are disclosed at
historic cost less any impairment losses. The Group believes that through investment in marketing, the
trademarks keep their value and therefore are considered to have an indefinite useful life and are not
subject to amortization. These assets are submitted to annual impairment tests or when there are
indicators that show a potential impairment.
d.- Client portfolio
Client portfolio is the intangible value allocated in the business combination of former Isapre ING Salud
S.A., which corresponds to the portfolio of affiliates and beneficiaries of that business. This intangible
asset has been deemed to have an indefinite useful life and is therefore amortized on the basis of the
expected benefits to be generated by the portfolio.
2.10.
Interest cost
Interest costs incurred in the construction of any qualified asset are capitalized over the time that is
required to complete and prepare the asset for its intended use. Other interest costs are recorded
through income (financial costs).
2.11.
Impairment losses of non-financial assets
Assets with an indefinite useful life are not subject to amortization and are annually submitted to
impairment test as described in Note 2.28 a). Assets subject to depreciation and amortization are
subject to impairment tests if some event or change in circumstances indicates that the book value may
not be recovered. An impairment loss is recorded for the excess in book value of the asset over its
recoverable value.
The recoverable value is the fair value of an asset less the costs to sell or value-in-use, the greater of the
two. In order to assess the impairment losses the assets are grouped at the lower level where there are
separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that
may have experienced an impairment loss are submitted to reviews at each balance sheet date to
determine whether the loss may be reversed.
2.12.
Financial assets
The Group classifies its financial assets in the following categories: at fair value with changes through
income, loans and accounts receivable, financial assets held to maturity and available for sale. The
classification depends on the purpose the financial assets were acquired for. Management establishes
the classification of the financial assets at the time of initial recognition.
a.- Financial assets at fair value with changes through income
Financial assets at fair value with changes through income are financial assets held for trading. A
financial asset is classified under this category if it is acquired mainly with the purpose of being sold in
the short-term. Derivatives are also classified as acquired for trading unless they are designated as
hedges. Assets in this category are classified as current assets.
Investments in financial instruments are initially recorded at cost and subsequently its value is updated
based on its market value (fair value).
Investments in shares are accounted for at their fair value, and the results are recorded under other
income.
15
b.- Loans granted and accounts receivable.
Loans and accounts receivable are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. In this category are include the trade debtors and other
receivables of the current assets, except for those maturities exceeding in 12 months since the balance
date, that are classified as non-current assets.
c.- Recognition and measurement of financial assets
Acquisitions and divestments of investments are recognized as of the negotiation date, meaning, on the
date that the Group commits to acquire or sell an asset. Investments are initially recognized at the fair
value plus transaction costs for all the financial assets not carried at fair value with changes through
income. Financial assets at fair value with changes through income are initially recorded at their fair
value and the transaction costs are carried to income.
Investments are written off in the books when the rights to receive cash flows from the investments are
exhausted or have been transferred and the Group has substantially transferred all the risks and
advantages derived from its ownership.
Financial assets held for sale and financial assets at fair value with changes through income are
subsequently valued at their fair value with counterparts in equity and income, respectively.
Loans, accounts receivable and financial assets held to maturity are recorded at their amortized cost
according to the effective rate method, recognizing the resulting interest in income.
Dividends income derived from financial assets at fair value with changes through income are
recognized in the statement of income under Other Income, when the right of the Group to obtain the
payment has been established.
The fair values of the investments with quotes available are based in the current purchase prices.
If the market for a financial asset is not active (for those securities that do not quote) the Group sets the
fair value using valuation techniques that include the use of recent available transactions between
willing and duly informed parties, related to other substantially equal instruments, the analysis of
discounted cash flows, and options pricing models using a maximum use of market inputs and placing
the least trust possible in specific inputs from the entity. In case that none of the abovementioned
techniques can be used to set a fair value, investments are recorded at their acquisition cost net of
impairment losses, if any.
The Group assesses at each closing date whether there is objective evidence that a financial asset or
group of financial assets may have experienced impairment losses. In the case of equity securities
classified as held for sale, to establish whether said titles have experienced impairment losses, whether
the fair value of the titles has decreased significantly or for an extended period of time below its cost will
be considered. If there is any evidence of this type for the financial assets held for sale, the accumulated
loss established from the difference between acquisition cost and the current fair value, less any
impairment loss in that financial asset previously recorded as a gain or loss is eliminated from the net
equity and is recorded as a loss in the income statement. Impairment losses recognized in the income
statement for equity instruments are not reversed through the income statement.
16
2.13.
Derivative financial instruments and hedging activity
Derivative instruments are initially recognized at their fair value in the date when the derivatives
contract has been signed and subsequently are valued at their fair value. The method to record a
resulting gain or loss depends on whether the derivative has been designated as a hedging instrument
and, if that is the case, on the nature of the accounting item it is hedging. The Group designates certain
derivatives as:


Hedging of a specific risk related to a recognized liability or a highly probable foreseen transaction
(hedging of cash flows).
Hedging of the fair value of recognized liabilities (fair value hedges).
The Group documents at the beginning of the transaction the existing relationship between the hedging
instruments and the hedged parties, as well as their objectives for the risk management and the strategy
to manage several hedging transactions. The Group also documents its assessment, both at the
beginning and on an ongoing basis, whether the derivatives used in the hedging transactions are highly
effective to compensate the changes in fair value or in the cash flows of the hedged parties.
The derivatives total fair value is classified as a non-current asset or liability if the outstanding maturity
of the hedged party is over 12 months and as a current asset or liability if the outstanding maturity of the
hedged party is lower than 12 months. The offsetting entry of this recognition is made in comprehensive
income.
When a hedging instrument reaches maturity or is sold, or when it ceases to comply with the
requirements to be recorded with the accounting treatment of hedging, any accumulated gain or loss in
equity as of that date remains in equity and is recognized when the projected transaction impacts the
income statement. When it is expected that the projected transaction will not occur, the accumulated
gain or loss in equity is transferred immediately to the income statement.
2.14.
Inventory
Inventory is valued at the lower of its cost or net realizable value. The cost is calculated using the
weighted average method. The net realizable value is the estimated sale price in the normal course of
business, less the applicable variable costs of goods sold.
Additionally, if needed, an impairment loss of inventory will be recorded when the cost of inventory
cannot be recovered, whether the inventory are damaged, have become partially or completely obsolete,
or if the sale price has declined.
At each period’s closing an assessment of the net realizable value of inventory is made, performing the
required adjustments in case of being overvalued.
2.15.
Trade debtors and other accounts receivable
These are recognized initially at their fair value (nominal value that includes an implicit interest) and
subsequently at their amortized cost according to the method of the effective interest rate, less any value
impairment loss provision. A trade accounts receivable impairment loss provision is set when there is
objective evidence that the Group will not be able to collect all the amounts owed according to the
original accounts receivable terms.
The existence of significant financial difficulties on behalf of the debtor, the probability that the debtor
becomes bankrupt or requires financial restructuring, and the existence of late or overdue payments are
considered indicators that the account receivable is impaired.
The implicit interest is broken down and recorded as a financial income as the interests are accrued.
The amount of the provision is the difference between the book value of the asset and the current value
of the projected cash flows, discounted at the effective interest rate. The book value of the asset is
17
reduced through the provision account and the amount of the loss is recorded in the income statement.
When an account receivable is considered uncollectable, it is written off against the corresponding
impairment provision. The subsequent recovery of amounts previously written-off is recorded as a debit
in the income statement.
2.16.
Cash and cash equivalent
Cash and cash equivalent include cash in banks, term deposits in financial institutions, other highly
liquid short-term investments with maturities of three months or less and bank overdrafts. In the
statement of financial position overdrafts - if any - are classified under current liabilities.
2.17.
Shareholder’s capital
Shareholder’s capital is represented by ordinary shares of one class and one vote per share.
Incremental costs directly attributable to the issue of new shares are presented in net equity as a
deduction, net of taxes, of the proceeds.
2.18.
Dividends distribution
As per what is explained in Note 22.3 dividends distribution corresponds to the policy set by
Management, this is 30% of the proceeds, subject to the agreements reached in the Shareholders
Meetings.
2.19.
Trade creditors and other payables
Trade creditors and other payables are recognized at their nominal value, as their average payment term
is short and there is no material difference with its fair value.
2.20. Interest-bearing loans
Loans are recorded initially at their fair value net of the costs incurred in the transaction. Subsequently,
loans are valued at their amortized cost; any difference between the proceeds (net of costs necessary to
obtain the loan) and the reimbursement value, is recognized in the income statement over the life of the
debt according to the method of the effective interest rate. The effective interest method consists of
applying the market rate of reference for debts of similar characteristics to the amount of the debt (net
of all costs required to obtain the loan).
Loans are classified as current liabilities unless the Group has an unconditional right to defer its
liquidations for at least twelve months beyond the balance sheet’s closing date.
2.21.
Corporate income tax and deferred taxes
The income tax expense includes taxes of Cruz Blanca Salud S.A. and its affiliates, based on the taxable
income for the period, along with the fiscal adjustments of prior periods and the change in deferred tax
balances.
Tax is recognized in the income statement, except when it is related to parties that are directly
recognized in equity. In that case, the tax is also recognized in equity (through the Interim consolidated
classified statement of Comprehensive Income).
Income tax is recorded on the basis of the liquid taxable income calculated for tax purposes.
Deferred taxes are calculated according to the liability method, over the temporary differences arising
from the tax base of assets and liabilities, and their book value. However, if the deferred taxes arise from
an initial recognition of an asset or a liability in a transaction different of a business combination that at
the time of the transaction does not impact income nor the tax gain or loss, it is not accounted for.
18
The deferred tax is calculated using approved or about to be approved and highly probable of being
passed tax rates, on the date of the financial statement and that are expected to be applicable when the
corresponding deferred tax asset becomes realized or deferred tax liability becomes liquidated.
Deferred tax assets are recorded when it is considered probable that the entities of the Group will have,
in the future, enough tax profits against which the assets may be made effective.
Deferred taxes have not been recorded for the temporary differences between the tax and accounting
values that investments in related parties may generate, as per what is set forth in IAS 12.
2.22.
Employee benefits
a.- Severance indemnity
The companies of the Group have not agreed this benefit with the employees.
b.- Personnel annual leave
The Group records an annual leave expense for the employees during the accrual period. This benefit
corresponds to all the employees and is equivalent to a fixed amount according to the individual labor
contracts with each partner.
This benefit is recorded at its nominal value.
c.- Employee bonuses
The payments related to the real performance bonuses accrued can differ of the amounts previously
recognized as liabilities, whose base of estimation were subject to the income of the period and to the
performance recorded in appraisals made by Management and objective appraisals (teamwork,
efficiency, empathy) and goals (income of the period, agreements, collectability indices and other).
2.23.
Provisions
Provisions for onerous contracts, legal proceedings and other contingencies, are set when:

The Group has a present liability, be legal or implicit, as a result of past events;

It is probable that a resource outflow will be required to settle the liability;

The amount has been estimated in a reliable manner.
Existing obligations at the balance date, arising as a result of past events whose settlement amount and
time are indeterminate, are recorded in the statement of financial position as a provision for the total of
the most probable amount that the Company estimates that it will have to disburse to settle the liability.
The provisions are quantified considering the best possible information on the date of their recognition.
In the Insurer area there are Provisions directly related to the Isapre business and correspond to
provisions of benefits accrued and not liquidated and for lawsuits related to health expenses and labor
disability subsidies (LDS, or SIL by its acronym in Spanish).
a.- Health expenses
The Health Insurance affiliate (Isapre) recognizes as expenses those benefits that, having materialized at
the closing date of the Financial Statements, have not been accounted for yet.
To come up with the provision the following were considered: benefits provided and not reported to the
Isapre, benefits provided and reported but not yet valued, and the benefits provided, reported and
valued but where the corresponding bonds have not been issued yet.
19
As an information starting-point were considered the Hospital Bonds, Medical Programs, Hospital
Reimbursements and Outpatients Reimbursements, and considering factors such as: behavior of
accident rates, historic trend, seasonal variables, processing time, prices, Specific Health Guarantees
(GES) and solution of medical programs and amount of benefits provided at the closing of each quarter
and liquidated on the following quarter.
b.- Labor Disability Subsidy (LDS)
LDS considers all medical leave that have been claimed but have not been valued, and those that, while
corresponding to the current closing period, have not been filed to the Isapre Cruz Blanca S.A.
To estimate the provision the following factors were considered: behavior of accident rates, historic
trend, seasonal variables, and amount of the benefits provided at the closing of each quarter and
liquidated on the following quarter.
In the calculation of the provision, the bonds and reimbursements for hospital and outpatients’ services
and LDS, the following was considered:


The cost of the benefits accrued at each monthly closing and that were accounted for in subsequent
dates.
The amount of the provision was set as the moving average of the last twelve moths of the subsidies
accrued at closing and accounted for after that date.
c.- Ongoing risk reserve
For the purposes of the Life Insurance Company, and according to what is set forth in General Standard
NCG 306 (letter b, point 1, Title III), this note presents the rationale for the application of the exception
indicated in said standard, according to which this affiliate records its liabilities with the Health
insurance beneficiaries, whose intermediary is the Isapre, by establishing an ongoing risk reserve
equivalent to one month of average premium, prior to discounting the acquisition costs, in accordance
to the requirements of the Superintendence of Securities and Insurance.
d.- Claims reserve
In the Life Insurance Company liabilities are recorded (Claims payable, outstanding claims, in
settlement process, and incurred but not reported). This Incurred But Not Reported reserve (from
hereon IBNR reserve) has the purpose to set a reserve to compensate the future cost of claims occurred
in the current period, but will not be informed until a time in the future that may be more or less close to
the present. In accordance with what is set forth in NCG 306 of the SVS and Circular 507, the IBNR
liabilities are estimated by applying the transitory method defined by the Superintendence of Securities
and Insurance.
The outstanding and settled claims correspond to the amount of claims of this type that as of the closing
of the financial statements were settled but as of the closing date have not been paid to the beneficiary.
Here are included the claims that are being assessed by the insurance Company to determine whether a
payment is due.
20
2.24.
Classification of balances as current and non-current
In the statement of financial position, balances are classified according to their maturity, as current if
the maturity is equal or lower to twelve months counted from the cut-off date of the financial
statements, and as non-current those that exceed that time frame.
2.25.
Revenue recognition
a.- Ordinary revenue
In the health service rendering business, ordinary revenue derived from the rendering of services are
recognized in accordance with IAS 18, when they can be reliably measured and in function of the
progress level of the rendering or realization of the transaction at the closing date.
Ordinary revenue is presented net of value added tax, returns, rebates and discounts and after
eliminating intercompany sales within the group where they consolidate.
Revenues derived from the rendering of medical services (hospital and outpatients), are recognized
generally in the period in which the services are provided and accrued on the basis of estimated
revenues as at the closing date of the financial statements.
For the Insurer business, according to what is set in IAS 18 it is necessary to recognize revenue on an
accrual basis. This implies the recognition of non-declared and non-paid (NDNP) contributions arising
from the obligation of the beneficiaries to pay the contribution (signed contracts between beneficiaries
and Isapre). The NDNP and DNP must be recorded net of impairment, avoiding in this manner the
recognition of assets that will not finally be recognized as an equity increase. In this segment, the Life
Insurance Company recognizes its revenue on an accrual basis on the accepted and ceded premium, in
accordance with what is set forth in Circular 1499 and it its subsequent modifications, which are in line
with IFRS.
With regards to commissions and direct costs of the sales area, and considering that there are studies
that demonstrate that the contract length of the beneficiary portfolio is approximately of six years, and
in order to correlate revenues (contributions) with expenses, it is allowed to recognize as an asset said
amount and to defer it over the average period of contract length of the beneficiaries, and with regards
to additional products such as unemployment insurance and death insurance, it is necessary to
recognize a provision to cover the net cost of benefits, for all beneficiaries that have their insurance
current at the closing date of the financial statements.
Ordinary income of the Insurance Company correspond to those net premiums originated by the sale of
Insurance Policies in the period between the date of authorization to operate granted by the
Superintendence of Securities and Insurance and the closing date of the financial statements.
b.- Interest income
Interest income is recognized using the effective interest method. When an account receivable suffers
impairment, the Group reduces the book value to its recoverable value, discounting the future cash flows
at the original effective rate of the instrument, and carries the discount as a lower interest income. The
interest income from loans that have suffered value impairment losses are recognized using the effective
rate method. At the closing date, these amounts are not relevant.
c.- Dividends income
Dividends income is recognized when the right to perceive the payment is established, in the case of the
investments that are not accounted for using the equity method.
21
2.26.
Leases
a.- When an entity of the Group is the lessee - Financial lease
The property, plant and equipment leases are recorded as financial leases when the Group holds
substantially all the risks and advantages derived from ownership. Financial leases are capitalized at eh
beginning of the lease at the lower of the fair value of the leased property or at the present value of the
minimum lease payments.
Each lease payment is distributed among the liability and the financial burdens to achieve a constant
interest rate on the outstanding balance of the debt. The corresponding lease liabilities, net of financial
burden, are included in other non-current accounts payable. The interest element of the financial cost is
charged to income over the life of the lease. The asset acquired under a financial lease scheme is
depreciated over the shorter of its useful life or the life of the contract.
b.- When an entity of the Group is the lessee – Operating lease
Leases where the lessor retains a significant part of the risks and advantages derived from the ownership
are classified as an operating lease. Payments for operating lease (nets of any incentive received by the
lessor) are charged to income on a linear basis over the life of the lease, unless it is more appropriate to
use another, mire systematic, basis that better represents the benefits generation pattern for the user,
independent of the actual fashion in that installments are made.
c.- When an entity of the Group is the lessor
Assets leased to a third party under operating lease contracts are included within property, plant or
equipment.
Revenue derived from the lease is recognized linearly over the term of the lease.
2.27
Business combinations
Business combinations are accounted for using the acquisition method. This involves the recognition at
fair value of identifiable assets (including previously non recognized intangible assets) and liabilities
(including contingent liabilities and future restructuring) of the acquired business.
Goodwill acquired in a business combination is initially valued at cost, and is defined as the excess of the
cost of the business combination over the company’s interest in the fair value of the assets, liabilities and
contingent liabilities identifiable in the acquisition. After the initial recognition, goodwill is measured at
cost less any accumulated impairment loss. For the purposes of impairment tests, goodwill acquired in a
business combination is allocated as of the acquisition date to each cash generating unit or groups of
cash generating units that are expected to get benefits from the combination synergies, notwithstanding
whether other assets or liabilities of the Group are allocated to these units or groups of units.
If the acquisition cost is lower than the fair value of the net assets of the acquired subsidiary, the
difference is carried directly to income.
Transaction costs are treated as expenses at the time they are incurred. For business combinations
performed in stages the fair value of the acquired company is measured at each opportunity, recognizing
the effects of changes in the interest in the results in the period in which they occur.
The accounting policies of the subsidiaries shall be modified if necessary, to guarantee the uniformity
with the policies adopted by the Cruz Blanca Salud Group. Minority interest is presented as a separate
component of net equity (non-controlling interest).
2.28
Impairment
Impairment tests are assessments performed to specific assets in order to test whether they can be
recovered or realized at a value equal or higher than its current book value.
22
a)
Non-financial assets
As set forth in IAS 36, balances of Property, Plant and Equipment are subject to impairment tests every
time that an event or change in circumstances of the business indicates that the book value of the assets
may not be recoverable, whereas goodwill and other Non-financial assets with indefinite useful life are
tested annually. The recoverable value of an asset is estimated as the greater of the net sales price and
the value-in-use. An impairment loss is recognized when the balance exceeds the recoverable amount.
A previously recognized impairment loss can be reversed if a change has occurred in the estimates
performed to calculate the recoverable amount, but not for an amount higher than the amount
calculated and accounted for in prior years. In the case of goodwill, a previously recognized impairment
loss is not reversible.
In order to assess the impairment losses, assets are grouped at the lower level for which there are
separately identifiable cash flows (cash generating units). Non-financial assets other than goodwill that
may have experienced an impairment loss are subject to reviews at each closing date to check for
reversals of the loss.
Cash generating units are the smallest identifiable groups of assets whose continuous use generates cash
inflows that are mainly independent of those generated by the use of other assets or groups of assets.
b)
Financial assets
In accordance with IAS 39, at the end of each period an assessment is carried to check if there is
objective evidence that assets or groups of financial assets are impaired. The effects of impairment will
be accounted for only if there is objective evidence of one or more events that occur after the initial
recognition of the financial asset, and when this impairment has future effects on the related cash flows.
Trade debtors are periodically assessed with regards to their agreed terms and those that are overdue
are reviewed and monitored for the purposes of getting evidence of their recoverability. In case of
obtaining objective evidence that the cash flows may not be recovered then the Company has a basis on
which to make a Trade debtors impairment estimate.
Trade debtors for which an impairment provision has been recorded are periodically reviewed to obtain
evidence of probable subsequent billing or collection in order to recognize, if needed, the impairment or
write-off of said receivable.
Therefore, the impairment or doubtful accounts provision related to Trade Debtors is calculated when
there is evidence that Cruz Blanca Salud S.A. or one of its affiliates will not receive payments in
accordance to the original sale terms. Furthermore, provisions are recorded when the customer enters
into a legal process of bankrupcy, or when Cruz Blanca Salud S.A. or some of its subsidiaries have
exhausted all collection methods over a reasonable time frame, either in a normal or legal stage.
Complementary information can be found in Note 3.9 b).
2.29.
Environment
Disbursements related to environment that do not correspond to property, plant and equipment
additions, are recorded as an expense in income of the period, or in the period where they are incurred.
2.30
Changes in accounting criteria
The Group has not made changes in accounting estimates or policies compared to prior periods.
23
NOTE 3.- FINANCIAL RISK MANAGEMENT
The Company is exposed to the risks of the industry where it develops its activity, such as changes in the
Regulatory framework, correlation with economic cycles and competition. The Company is also exposed
to risks related to the financial structure of the Company and its affiliates, as well as insurance risk in the
Isapre and Life Insurance industries.
The main risk situations that the Group faces are:
3.1.
Regulatory framework
With regards to the Health Care and Insurance businesses the Superintendence of Health is
permanently supervising its operations and checking the compliance with the current regulations. This
forces the subsidiary Isapre Cruz Blanca to comply with the regulations of the industry.
Cruz Blanca Salud S.A. and Cruz Blanca Compañía de Seguros de Vida S.A. are entities subject to
regulation by the Superintendence of Securities and Insurance (SVS).
Cruz Blanca Salud S.A. and affiliates have the technical, management and financial capabilities to
comply with the required regulations and to adequate its operations to the legal requirements.
Additionally, the Company is permanently improving its Quality Policies applicable to each of its
subsidiaries, like for example the current process of certification of its hospitals and outpatient care
centers.
3.2.
Correlation with economic cycles
This industry has a relative positive correlation to the economic cycle where there are a series of elective,
non-urgent, services that people may postpone. However, Cruz Blanca Salud S.A. and affiliates have as a
business strategy the rendering of Health Care services of quality at an accessible price and develops its
commercial strategies according to this to minimize the effect of said cycles.
3.3.
Competition
In the Insurance business, competition among its agents generates the need to permanently offer
improvements in the benefits offered to its beneficiaries, with a potential impact no margins. In the
health care business, competition results in efforts to improve technology and service levels. Both in the
insurance health care businesses the Company and its affiliates hold trademarks of recognized prestige
and with a relevant market position at national level, considering in the case of the hospitals the areas of
influence in the regions where they are located. Additionally, the have a financial structure that allows
them to perform the required investments to keep a relevant position in their respective markets.
3.4.
Currency risk
Financial liabilities of the companies are mainly nominated in UF and Chilean pesos. Investments are
mainly made in Chilean pesos, notwithstanding specific investments in medical equipment that are set
in foreign currency for which the Parent company and its affiliates, through its Finances area, attempt to
hold an adequate financial structure to control and mitigate the risk of fluctuations in the value of these
currencies, generating financing instruments or financial investments in foreign currencies that reduce
the impact from currency fluctuations from the moment that the investment decision is made up to the
moment that the asset is installed and must be paid.
3.5.
Foreign exchange rate risk
The head company holds investments in Peru which results in an exposure to the fluctuation of the
exchange rate the Peruvian new sol and US dollar. The investment is controlled from Chile in Chilean
pesos.
Despite the above, at the closing of this period the Head Company and its Affiliates do not hold
significant balances in currencies other than the functional currencies, and therefore there is no
significant exposure to the foreign exchange rate risk in these companies.
24
3.6.
Interest rate risk
The Company, through its Finances area, aims to have a financing structure that allows it to control the
volatility of the cost of debt and to minimize the Interest rate risk and its impact on the Company’s
income. A portion of the debt is agreed with a fixed interest rate (mainly the portion related to the
Bonds) and a portion with a variable rate - mainly the portion related to the Syndicated Loan - which
has been transformed to fixed rate through the use of derivative instruments.
3.7.
Insurance risk
With regards to the Insurance business of the Company, management on Insurance risk is based on the
correct pricing of the insurance plans that the Company trades. To perform the pricing the following
aspects must be considered, among others:
a) Income estimates: socio economic segment, number of beneficiaries, permanence rate, and overdue
rate.
b) Cost estimates (claims rate): age, gender, socioeconomic segment, geographic zone, preferred health
care provider, and frequency, price of benefits.
The pricing method considers, for a given costs level (given the frequency of according to the portfolio’s
configuration) and a target claims rate (defined for the segment), the estimation of required income to
reach that level of claims rate. After obtaining the income the price is estimated considering the risk
factors that the portfolio configuration generates for these expenses.
The composition of the beneficiaries in Isapre Cruz Blanca S.A., by region, is the following:
Description
Num ber of affiliates (Policies)
06/30/2014
12/31/2013
Market share %
06/30/2014
12/31/2013
Region
143,477
139,396
40%
39%
Santiago
219,211
219,558
60%
61%
Total
362,688
358,954
100%
100%
In the Life Insurance Company, internal policies have been set based on regulation requirements to
manage insurance own risks, among which are: Reinsurance Management Risks, Product Development
and Pricing Risks, Subscription Risks, Claims Risks and Reserve Management Risks.
3.8.
Calculation of fair value of financial instruments
As part of the risk analysis, a market value analysis has been performed over the bank liabilities of the
Company At December 31, 2014. This analysis consists in obtaining the present value of the future cash
flows of the current financial debt using rates representative of the market conditions according to the
Company’s risk and the outstanding term of the debt. This analysis concluded that there are no
significant effects with respect to the values of the financial debt calculated by the amortized cost
method.
3.9.
Financial risk management
Cruz Blanca Salud S.A. has a formal policy, approved by the Board and reviewed at least annually, which
sets forth the general indications regarding the management of the Financial Risk of the Company.
25
In this sense, the Company understands as “Risk Management” the process that involves how the entity
identifies, assesses, responds, monitors and reports those risks relevant to the size, volume and
complexity of its operations.
Cruz Blanca Salud S.A. understands the different types of risks that the Company faces according to the
industry where each affiliate operates and how these companies interact with economic and financial
environment that, under certain circumstances, could impact the business expectations and the
financial sustainability in the medium and long term.
On the other hand, according to the scenario that the industry may be facing, the Company must assess
the impact on business development for circumstances arising from fluctuations in the economic cycle
(for example, inflationary scenarios) and exceptional unemployment levels.
These factors make Cruz Blanca Salud S.A. continuously search method that result in improvements of
its benefits in the lines of services, faced to a high competition scenario.
In the performance of its daily operations, Cruz Blanca Salud S.A. faces different factors that could
impact the achievement of the profitability targets. These factors could impact the organization by
different transmission mechanisms, generating scenarios of financial uncertainty that could result in
defaults with counterparts in financial operations, liquidity contractions, significant fluctuations in the
values of assets and liabilities held in portfolio, among other matters. Given this, the Corporate Finance
Management is responsible to perform the actions related with the financial risk management.
According to the financial risk management policies, the Company uses derivative instruments only with
the purpose of hedging exposure to currency and interest rate risks derived from the Company’s
operations and its sources of financing. The company does not acquire derivatives for trading.
The Company classifies its risks according to the underlying uncertainty source and their transmission
method. Therefore the Company understands that the risks it faces are:
a.- Liquidity risk
Cruz Blanca Salud S.A. uses the concept of liquidity risk when speaking of that financial uncertainty at
different time frames, related with the Company’s capability to respond to the net cash requirements
that support its operations, both in normal and exceptional conditions.
As a liquidity risk management policy, the Company holds an adequate level of liquidity through longterm credit facilities for amounts that are sufficient to support the requirements of each of its business
lines, projected over a period that is in function of the situation and expectations of the equity and debt
markets.
The analysis of financial liability maturities of Cruz Blanca Salud S.A. is presented following:
Maturity analysis
Class
Currency
Syndicated loan
$
Bond
UF
Other loans
$
Other loans
Other loans
2014
2015
2016
2017
2018 and beyond
Th$
Th$
Th$
Th$
Th$
Total
1,236,113
7,834,350
7,488,121
15,184,891
14,304,910
46,048,385
788,496
1,572,939
1,577,277
1,575,108
53,351,873
58,865,693
10,805,781
4,082,383
3,847,468
3,595,502
4,814,707
27,145,841
S/.
19,093
118,231
109,451
31,965
21,365
300,105
UF
1,163,162
3,134,999
3,060,316
4,227,104
24,301,413
35,886,994
Leasing
$
2,801,296
5,073,247
3,915,652
1,458,963
36,792
13,285,950
Leasing
S/.
70,102
132,364
129,951
122,157
20,505
475,079
Leasing
UF
876,035
1,297,581
989,136
747,319
2,206,483
6,116,554
17,760,078
23,246,094
21,117,372
26,943,009
99,058,048
188,124,601
Total
26
This analysis does not include the effect of the swap hedge accrued at this date for an amount of Th$
6,987,270 and the present value at June 30, 2014 of these liabilities is Th$ 145,669,065 (See note 6.2).
The Company periodically updates its cash flow projections for a moving period of 60 months, and
recurrently performs an analysis of the financial situation, of the economic environment and an analysis
of the debt market so that, in case it is required, to enter into new financing or to restructure existing
credits over terms that are coherent with the cash flow generation capability of the different businesses
where the Company participates. Notwithstanding, it counts with short-term lines of credit that have
been approved but not used, cash and cash equivalent to manage the short-term liquidity needs, which
allow for a significant reduction of risk.
Those financial asset investments disclosed in Notes 4.1 and 6.1 do not present liquidity issues that may
alter the exposure to risk.
The liquidity indices at the closing of each period are:
RATIO
06/30/2014
12/31/2013
Liquidity
0.77
0.85
Acid
0.76
0.84
Indebtedness
1.51
1.51
In conclusion, the Company holds the required cash to cover its financial obligations.
b.- Credit risk
The concept of credit risk is used to speak mainly to that financial uncertainty, at different time frames,
related with the compliance with obligations subscribed with counterparts, at the moment of exercising
contractual rights to receive cash or other financial assets from Cruz Blanca Salud S.A.
The Company holds trade accounts receivable that represents 10.13% of the total assets. The credit risk
related to accounts receivable is managed and permanently monitored by Management. In addition, the
Company has set policies, procedures and controls that allow minimizing the credit risks.
In this manner, the portion of clients that remain uncollectable is established. For these clients, the
Company performs through its external lawyers a process of pre-legal and legal collection. Also,
impairment or doubtful accounts are estimated and this balance is disclosed in notes 8.1 and 8.4.
From a point of view of concentration, the Company has defined that the risk profile can be
differentiated by client type. In this manner, the total exposure is made up of:
Client
%
Isapre
71
Fonasa
19
Institutions / Companies
8
Private individuals
2
According to the information presented in the table above, one of the main customers of the Company
are Isapre, segment which gathers 71% of the total, with an average collection period of 37 days after
billing, and 100 days after a patient is discharged, which is a minimum level of delinquency given the
current regulation on the industry, that places emphasis on the financial capability of these institutions.
There are no foreseeable contingencies for this concept with regards to this client segment. The same is
true for account receivables from Fonasa (19%), which can be considered very close to “risk free” given
27
its condition of social security provider institution that is financed by direct contributions by the State of
Chile.
The third group, with an 8% share, corresponds to companies with agreements, for which the Group has
hired an external collections service that presents weekly to the Finance Department the results of its
work, as these companies present the higher relative risk level within the segments with greater share.
Although from a point of view of attributes the “individuals” segment is the most risky, the impact of the
occurrence of events of credit would not result material given the low share over the total exposure.
The collection of payment from a patient in hospital is supported by promissory notes which are
released to the patients once that the corresponding bill has been paid either in cash or through financial
instruments. For this reason the guarantees are not material against the total of accounts receivable as
its risk exposure is not significant.
Affiliates of the outpatients segment, given the business practice of collecting the payment prior to
initiating the medical appointment or procedure have a lower risk credit in accounts receivable.
The affiliates of the insurer segment perform a risk credit assessment based on current policies and its
actual collection probability of the amounts accrued monthly that are related to the coverage granted.
c.- Market risk
The market risk concept is used to address that financial uncertainty at different time frames related to
the future developments of the market variables relevant to the financial performance.
Specifically, the relevant financial variables to the business of the Company are:
-
Exchange rate Chilean peso to UF
Reference interest rate (TAB - Interbank active rate, as per its acronym in Spanish)
The abovementioned activities establish the magnitude of the interest payment of some of the most
important liabilities of the Head Company and some affiliate companies.
Market variables sensitivity analysis
When faced to uncertainty scenarios created from these factors, the net exposition amount of these
assets and liabilities has been submitted to sensitivity tests according to the expected volatility in the
interest rate (TAB 180) and the behavior of the UF in the calculation of the maximum exposure amounts
in face of eventual changes in the conditions of the economic environment.
With regards to the assets subject to UF volatility and given the investment portfolio in UF that the
Company holds at June 30, 2014, there has been a gain of Th$ 1,126,601 at a rate of 3.09%
With regards to the liabilities, the impact in results from changes in the variables identified as risky is
analyzed according to both positive and negative changes expected, and taking in consideration the
volatility of the variable rate of debt TAB 180, the hedging effect can be seen in the following table:
28
Type
Currency
Balance
Th$
Syndicated loan (1)
Unsw apped
Sw apped
Bond
Other loans
Leasing
$ / UF
$
UF
UF
UF
UF
39,467,556
3,256,000
31,246,684
36,814,173
21,136,571
5,295,388
Totals
(1)
(2)
(3)
(4)
Market
Variable
Variable
Volatility
Variable
Changes
TAB
TAB
TAB
UF
UF
UF
+-1,65% (2)
+-1.65% (2)
3.09% (3)
3.09% (3)
3.09% (3)
3.09% (3)
1.65%
1.65%
3.09%
3.09%
3.09%
3.1%
Profit
Th$
+
53,724
0
0
0
0
53,724
-
53,724
0
1,137,558
653,120
163,627
2,008,029
Equity / (hedge) (4)
Th$
+
-
0
965,523
0
0
0
965,523
0
965,523
0
0
0
965,523
Corresponds to a syndicated loan partially hedged with a CLP/UF swap and fixed rate on 91.88% of the
liability.
TAB 180 volatility between 2008 and 2012 according to statistics of the Central Bank of Chile
UF volatility between 2008 and 2012 according to the Central Bank of Chile; equivalent to the (positive)
increase of the average UF in said period.
Corresponds to the change by recording equity as an effect of the designated hedging relationships.
Cruz Blanca Salud S.A. At June 30, 2014 does not have significant balances in readjustable monetary
assets in currencies other than the functional currency (Chilean peso) and its exposition to the market
risk is focused on the balances of the outstanding debts. The sensitivity analysis of said balances,
considering the portion nominated on a different base than the functional currency (equivalent to UF
3,933,331), shows a potential loss in income equivalent to Th$ (1,954,305) considering the volatility of
the UF in the last 5 years. However, it should be noted that a significant portion of the Company’s cash
flows come from the Insurance business that are restated monthly following the change in the UF, which
mitigates the abovementioned exposure.
Additionally, the Company presents an exposure to the changes to the TAB rate for 180 days for a
portion of the syndicated loan whose impact on income, after applying the volatility of the last 5 years of
the TAB 180 rate, would be a loss of income of Th$ 53,724 and a gain or loss in net assets of Th$965,523
a portion that has 100% hedge effectiveness.
An internal structure has been set to carry the actions to manage the exposure to financial risk, where
the Group’s Finance Management is in charge of assessing the requirement of performing hedging
operations, mainly, of liabilities nominated under a variable interest rate or in currencies different to the
functional currency.
Currently the Company uses derivative instruments to mitigate the exposure to the Interest rate risk that
generate those liabilities nominated with a variable interest rate, specifically the syndicated loan indexed
to a TAB rate on Chilean pesos. Specifically, among the actions to mitigate financial risk is the hedge for
an approximate amount of Th$ 52,560,000 through Cross-Currency Swaps where the active component
replicates the conditions set for the debt. The current balance of the hedged debt is Th$ 31,246,684 and
the total amount of the syndicated loan is Th$ 34,502,684.
This hedging effect is what is reflected in the sensitivity table, showing that the effect of change in the
interest rate and the value of the UF impact in the opposite way the effect on the liability.
Part of the risk management is to identify and minimize the effect of the risk situations that affect the
Company’s risk profile. Specifically, a series of assets has been defined, that can be chosen to form part
of the Company’s investment portfolio.
A structure of investment limits has been defined, according to an external classification setup, which
differentiates on the basis of the class of instrument, issuer type and credit rating of short and longterm. In this manner, the institutions that are eligible as counterparts of the Company, are:
29
Type of issuer
Short-term
Long-term
instrum ents instrum ents
Banks
State and Private Companies
Pension Funds Managers
Level 1
Aafm / M1
AA
AA
-
With these ratings Cruz Blanca Salud S.A. seeks to hedge the eventual risks that may arise as a
consequence of its business and performance.
d.- Insurance risk
With regards to the Insurance business of the Company, management on Insurance risk is based on the
correct pricing of the insurance plans that the Company trades. To perform the pricing the following
aspects must be considered, among others:
Income estimates: socio economic segment, number of beneficiaries, permanence rate, and overdue
rate.
Cost estimates (claims rate): age, gender, socioeconomic segment, geographic zone, preferred health
care provider, and frequency, price of benefits.
The pricing method considers, for a given costs level (given the frequency of according to the portfolio’s
configuration) and a target claims rate (defined for the segment), the estimation of required income to
reach that level of claims rate. After obtaining the income the price is estimated considering the risk
factors that the portfolio configuration generates for these expenses.
NOTE 4.- MANAGEMENT ESTIMATES AND JUDGMENT
The accounting policies adopted in the preparation of these consolidated interim financial statements
are prepared as required by IFRS 1. These policies have been designed following IFRS current as of June
30, 2013 and applied consistently to all periods presented in these consolidated interim financial
statements.
Estimates and criteria used are continuously assessed and are based on historic experience and other
factors, including the expectation of occurrence of future events that are deemed reasonable according
to circumstance.
The Group makes estimates and assumptions with regards to the future. Accounting estimates are, by
definition, seldom equal to actual results. Estimates and assumptions that have a significant risk of
causing a material adjustment to the asset and liability balances of next year are disclosed following:
4.1.
Estimation on goodwill impairment
The Group assesses annually if goodwill has suffered any impairment, according to the accounting policy
described in Note 2.9 a). Recoverable amounts of the cash generating units have been established on the
base of the calculation of their value in use and are disclosed in Note 14.
4.2.
Fair value of derivatives and other financial instruments
The fair value of financial instruments that are not traded in an active market (shares without quote or
insufficient market presence, off-market derivatives, etc.) is calculated using valuation techniques.
The Financial Instruments have been accounted at their fair value in the statement of financial position
At June 30, 2014, based on the methods set forth in IAS 39. Said methods applied to each class of
financial instruments are classified according to its hierarchy in the following manner:
-
Level I: value or price quote in identical asset or liability markets.
30
-
Level II: inputs from sources different than the quote values in Level I but that may be observed in
the market of assets of liabilities either directly (price) or indirectly (obtained from prices).
-
Level III: inputs for assets and liabilities that are not based on observed market data.
The following chart presents the financial assets and liabilities measured at fair value according to their
valuation hierarchy:
Classes of financial
instrum ents at fair value
06/30/2014
Current
Th$
12/31/2013
Non-current
Th$
Current
Th$
Non-current
Th$
Hierarchy
Financial Assets
Superintendence Guarantee
Mutual Funds
Term Deposits
Bonds and mortgages
Shares
0
0
15,131,767
18,514,304
812
18,484,926
437,446
2,782,312
9,421,805
0
0
0
27,998,290
11,825,132
911
14,295,813
245,656
2,299,440
7,120,184
0
Total assets
33,646,883
31,126,489
39,824,333
23,961,093
Interest-bearing loans
Financial lease liabilities
Bonds
Sw ap contracts
Other bank loans
13,406,076
6,297,656
-21,490
1,158,901
3,505,183
67,087,888
11,570,819
36,835,663
5,828,369
0
14,599,776
6,174,366
770,426
1,064,375
1,549,243
72,678,872
13,667,515
35,712,927
4,613,300
0
Total liabilities
24,346,326
121,322,739
24,158,186
126,672,614
Total
9,300,557
(90,196,250)
15,666,147
(102,711,521)
Level II
Level II
Level II
Level II
Level II
Financial liabilities
4.3.
Level II
Level II
Level II
Level II
Level II
Impairment of goodwill of investments and intangibles with indefinite useful life
The Group holds intangibles with indefinite useful life that are presented at historic cost less any
impairment loss. These assets are subject annually to impairment tests, or when there are factors that
indicate a potential impairment.
4.4.
Fair value of assets and liabilities
The fair value is the amount at which an asset can be bought or sold or the amount at which a liability
can be incurred or liquidated in a current transaction between duly informed parties at arm’s length
conditions. The Group estimates that said values based on the best estimate available make use of
models or other valuation techniques.
4.5.
Useful lives and residual value
The valuation of investments in property, plant and equipment consider the performing of assessments
to calculate both the residual values and the useful lives to use in the calculation of the depreciation of
each asset. These estimates consider variables as operations, technology and alternative use of the
assets.
In the case of the depreciation of medical equipment, the depreciation has been estimated based on the
useful life that Management has estimated for each of these assets through estimations of constructive
aspects (materiality of the components that make up the equipment), intensity in the use of the goods
(time or frequency of use of the equipment) and costs related to repairs.
31
4.6.
Fair value of the provision on health related expenses and labor disability
These provisions are recorded as a provision whose amount is equivalent to the most probable amount
that the Group estimates it will have to disburse to settle the liability with impact on results. See note
2.23 for additional information.
4.7.
Fair value of non-declared and non-paid social payments (NDNP)
This value represents those non-declared and not paid contributions at the closing of the period and that
have been recognize as revenue according to IAS 18. Amounts calculated are based on the real behaviors
of collection considering a 3-year history and its moving average measured considering the expected
rate of occurrence.
4.8.
Legal proceedings and other contingencies
The Group assesses periodically through its management and/or legal counsel the impact of litigation in
the financial statements, as set forth in IAS 37.
NOTE 5.- CASH AND CASH EQUIVALENT
Cash and cash equivalents included in the Consolidated Statements of Financial Position At June 30,
2014 and December 31, 2013, is the following:
Balances at
Cash and Cash Equivalents
Cash
Bank account balances
Short-term deposits up to 90 days
Marketable securities of quick liquidation (overnight deposits, mutual funds)
Bonds and mortgage letters
Total cash and cash equivalents
06/30/2014
12/31/2013
Th$
Th$
544,352
435,078
4,634,680
5,329,001
4,634,071
5,059,418
16,934,049
8,238,086
463,750
452,454
27,210,902
19,514,037
The breakdown by currency type is the following:
Currency
US dollar
Peruvian New Sol
UF
Non restatable Chilean pesos
Balances at
06/30/2014
12/31/2013
Th$
Th$
2,375
1,508,614
2,222,527
23,477,386
8,077
1,891,781
2,612,040
15,002,139
27,210,902
19,514,037
Cash and cash equivalents included in the Consolidated Interim Statements of Financial Position At
June 30, 2014 and December 31, 2013, does not differ from those presented in the Interim Consolidated
Statements of Cash Flows, as explained in the following chart:
32
Reconciliation of Cash and Cash Equivalents
presented in the statem ent of financial position w ith
that in the statem ent of cash and cash equivalents
Balances at
06/30/2014
12/31/2013
Th$
Th$
Cash and Cash Equivalents
27,210,902
19,514,037
Cash and Cash Equivalents (statem ent of cash flow s)
27,210,902
19,514,037
NOTE 6.- OTHER CURRENT AND NON-CURRENT FINANCIAL ASSETS
NOTE 6.1.
OTHER FINANCIAL ASSETS
The breakdown of this accounting area at June 30, 2014 and December 31, 2013 is the following:
Other financial assets
Mutual funds (variable income)
Term deposit
Superintendence guarantee
Shares
Marketable securities of quick liquidation (overnight
deposits, mutual funds)
Term deposit
Term deposit
Superintendence guarantee
Marketable securities of quick liquidation (overnight
deposits, mutual funds)
Total
Currency
06/30/2014
NonCurrent
Current
Th$
12/31/2013
NonCurrent
Current
Th$
Non restatable pesos
0
4,663,982
0
812
437,446
1,609,815
2,059,884
0
0
7,900,787
0
911
245,656
1,762,684
1,391,986
0
0
852,165
775,560
608,754
New Peruvian Sol
UF
UF
0
5,833,714
0
0
1,172,497
16,425,042
14,715
15,023,369
0
0
536,756
12,903,827
UF
1,116,505
8,569,640
2,359,032
6,511,430
11,615,013
31,126,489
26,074,374
23,961,093
These assets are presented at fair value, recognizing the changes in value through income under
Financial Income.
The investments performed by Isapre Cruz Blanca S.A. in order to comply with the obligations set forth
in the Law, with regards to the guarantee that the Health Institutions must deposit and maintain, as well
as the investments held by the Life Insurance Company to keep the minimum risk equity, are assets
recorded at fair value, recognizing the changes in value in income under Financial Income.
33
NOTE 6.2. OTHER FINANCIAL LIABILITIES
The breakdown of this accounting area at June 30, 2014 and December 31, 2013 is the following:
Areas
Bank loans
Currency
US dollars
Non-restatable pesos
Peruvian New Sol
UF
Total bank loans
Financial leasing liabilities
US dollars
Peruvian New Sol
UF
Total financial leasing liabilities
Sw ap contracts
Bond debt
Other financial loans
Total Other financial loans
Total
UF
UF
06/30/2014
NonCurrent
Th$
Th$
12/31/2013
NonCurrent
Th$
Th$
Current
Current
22,385
12,228,858
69,635
1,085,198
76,460
46,831,406
128,649
20,051,373
21,231
13,468,748
63,474
1,046,323
83,164
52,481,139
155,825
19,958,744
13,406,076
67,087,888
14,599,776
72,678,872
102,391
4,846,208
14,328
1,334,729
252,401
7,297,339
60,420
3,960,659
140,302
4,529,803
10,414
1,493,847
289,201
8,901,361
65,408
4,411,545
6,297,656
11,570,819
6,174,366
13,667,515
1,158,901
5,828,369
1,064,375
4,613,300
-21,490
36,835,663
770,426
35,712,927
0
3,505,183
0
0
18,770
1,530,473
0
0
3,505,183
0
1,549,243
0
24,346,326 121,322,739
24,158,186 126,672,614
34
6.2.1. The breakdown of currencies and maturities of interest-bearing loans is the following:
At June 30, 2014 - Current
Tax Id
Num ber of
Debtor Entity
76.005.001-6
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
79.576.810-6
79.576.810-6
95.432.000-6
95.432.000-6
95.432.000-6
95.432.000-6
95.432.000-6
95.432.000-6
76.012.645-4
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
76.012.653-5
96.359.000-8
96.359.000-8
76.398.000-6
76.098.454-k
76.098.454-k
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
0-E
0-E
Totals
Nam e of Debtor Entity
Cruz Blanca Salud S.A. (*)
Desarrollo e Inversiones Medicas S.A.
Clínica Reñaca S.A.
Centro Medico Antofagasta S.A
Centro Medico Antofagasta S.A.
Inmobiliaria Centro Medico Antofagasta
Servicios y Abastecimientos a Clínicas S.A.
Inmobiliaria Somequi S.A.
Sociedad Médica Quirúrgica de Antofagasta S.A.
Integramédica Centros Médicos S.A.
Integramédica S.A.
Integramédica S.A.
Corporacion Medicas de Arica S.A.
Resonancia Magnética S.A.
Country
Tax Id
Num ber of
Creditor
Com pany
Creditor Nam e
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Peru
Peru
97.023.000-9
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.080.000-K
97.053.000-2
97.032.000-8
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.080.000-K
97.004.000-5
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
76.645.030-k
97.023.000-9
97.023.000-9
97.053.000-2
97.080.000-K
97.080.000-K
97.080.000-K
97.080.000-K
97.080.000-K
97.053.000-2
97.053.000-2
0-E
0-E
Banco Corpbanca
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Bice
Banco Security
BBVA
Banco Security
Banco Security
Banco Bice
Banco Chile
Banco Bice
Banco Chile
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Itaú
Banco Corpbanca
Banco Corpbanca
Banco Security
Banco Bice
Banco Bice
Banco Bice
Banco Bice
Banco Security
Banco Security
Banco Security
Banco de Crédito del Perú
Am ortization
Type
Annual
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Annual
Annual
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Monthly
Currency
Nom inal
Interest
rate (%)
Effective
interest
rate (%)
Maturity
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
New Peruvian Sol
US Dollar
6.59%
5.50%
5.00%
6.00%
5.50%
4.00%
7.63%
6.04%
7.63%
6.95%
4.70%
4.87%
7.05%
6.17%
6.71%
7.31%
4.67%
4.43%
4.37%
4.70%
4.43%
4.47%
5.46%
4.70%
7.19%
6.59%
7.80%
5.25%
6.32%
6.32%
6.32%
6.32%
7.12%
7.12%
7.12%
8.00%
8.50%
6.70%
5.58%
5.00%
6.00%
5.50%
4.00%
7.78%
6.13%
7.78%
7.07%
4.76%
4.93%
7.18%
6.26%
6.83%
7.45%
4.73%
4.48%
4.42%
4.76%
4.48%
4.52%
5.53%
4.76%
7.43%
6.70%
7.95%
5.32%
6.42%
6.42%
6.42%
6.42%
7.25%
7.25%
7.25%
8.00%
8.50%
06/30/2018
01/03/2026
12/02/2025
04/05/2020
07/03/2033
04/10/2032
08/11/2014
08/11/2014
08/04/2014
10/06/2014
10/10/2032
02/09/2020
05/05/2014
08/01/2014
01/01/2014
02/04/2014
09/10/2031
09/10/2031
09/10/2031
10/10/2032
09/10/2031
09/10/2031
04/30/2019
10/10/2032
09/25/2017
06/30/2018
11/29/2018
05/28/2019
10/15/2014
10/15/2014
10/15/2014
10/15/2014
08/01/2014
08/01/2014
08/01/2014
01/24/2017
11/05/2018
1 to 3
m onths
Th$
(17,907)
33,339
22,390
24,746
15,511
38,351
1,108,800
352,761
454,414
457,035
17,586
24,491
Current
3 to 12
m onths
Th$
Balance at
06/30/2014
4,946,862
83,969
56,043
61,621
35,543
92,642
0
0
0
0
41,769
61,621
0
0
4,928,955
117,308
78,433
86,367
51,054
130,993
1,108,800
352,761
454,414
457,035
59,355
86,112
0
1,261,667
60,485
23,129
5,207
8,793
2,079
5,147
8,649
1,545
9,503
0
96,496
17,440
239
239
239
239
302,588
554,428
161,288
16,871
5,601
151,315
57,863
13,025
20,884
5,201
12,877
25,945
3,669
29,602
618,000
1,492,365
52,323
100,000
100,000
100,000
100,000
0
0
0
52,764
16,784
211,800
80,992
18,232
29,677
7,280
18,024
34,594
5,214
39,105
618,000
1,588,861
69,763
100,239
100,239
100,239
100,239
302,588
554,428
161,288
69,635
22,385
5,073,389
8,332,687
13,406,076
1,261,667
35
At June 30, 2014 - Non-current
Tax Id
Num ber of
Debtor Entity
76.005.001-6
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
95.432.000-6
95.432.000-6
76.012.645-4
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
76.012.653-5
96.359.000-8
96.359.000-8
76.398.000-6
76.098.454-k
76.098.454-k
96.613.220-5
0-E
0-E
Totals
Inmobiliaria Centro Medico Antofagasta
Integramédica S.A.
Integramédica S.A.
Country
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Peru
Peru
Tax Id
Num ber of
Creditor
Com pany
Creditor Nam e
97.023.000-9
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
76.645.030-k
97.023.000-9
97.023.000-9
97.053.000-2
0-E
0-E
Banco Corpbanca
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Itaú
Banco Corpbanca
Banco Corpbanca
Banco Security
Am ortization
Type
Annual
Monthly
Monthly
Monthly
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Annual
Annual
Monthly
Monthly
Monthly
Currency
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
New Peruvian Sol
US Dollar
Nom inal
Interest
rate (%)
Effective
interest
rate (%)
Maturity
6.59%
5.50%
5.00%
6.00%
5.50%
4.00%
4.70%
4.87%
4.67%
4.43%
4.37%
4.70%
4.43%
4.47%
5.46%
4.70%
7.19%
6.59%
7.80%
5.25%
8.00%
8.50%
6.70%
5.58%
5.00%
6.00%
5.50%
4.00%
4.76%
4.93%
4.73%
4.48%
4.42%
4.76%
4.48%
4.52%
5.53%
4.76%
7.43%
6.70%
7.95%
5.32%
8.00%
8.50%
06/30/2018
01/03/2026
12/02/2025
04/05/2020
07/03/2033
04/10/2032
10/10/2032
02/09/2020
09/10/2031
09/10/2031
09/10/2031
10/10/2032
09/10/2031
09/10/2031
04/30/2019
10/10/2032
09/25/2017
06/30/2018
11/29/2018
05/28/2019
01/24/2017
11/05/2018
1 to 3 years
Th$
Non-current
From 3 to 5
Over 5 years
years
Th$
Th$
17,251,342
223,917
149,448
164,321
94,782
262,999
118,680
164,321
426,880
163,239
36,746
59,340
14,672
36,329
69,188
10,425
86,949
2,162,000
5,975,999
139,529
128,649
44,758
12,322,387
223,917
149,448
164,321
94,782
286,929
130,092
164,321
461,325
176,411
39,711
65,046
15,856
39,261
575,125
11,427
11,760
1,544,000
7,476,969
831,842
0
31,702
0
737,059
485,706
1,048,631
667,425
2,580,653
1,252,518
1,034,937
3,742,887
1,431,284
322,189
626,259
128,642
318,534
0
110,019
0
0
0
0
0
0
27,784,513
24,816,632
14,486,743
Balance at
06/30/2014
29,573,729
1,184,893
784,602
1,377,273
856,989
3,130,581
1,501,290
1,363,579
4,631,092
1,770,934
398,646
750,645
159,170
394,124
644,313
131,871
98,709
3,706,000
13,452,968
971,371
128,649
76,460
67,087,888
(*): The loan with Corpbanca corresponds to a syndicated loan where the following banks are involved: Corpbanca with 59%, BancoEstado with 18%, Banco
BICE with 13% and Banco Security with 11%. This loan has financial covenants identical to those of the Bonds issue, covenants that are described in Note
6.2.4.
36
At December 31, 2013 - Current
Tax Id
Num ber of
Debtor Entity
76.005.001-6
0-E
0-E
95.432.000-6
95.432.000-6
76.012.645-4
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
76.012.653-5
96.359.000-8
96.359.000-8
95.432.000-6
95.432.000-6
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
79.576.810-6
79.576.810-6
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
96.613.220-5
76.098.454-K
76.098.454-K
76.398.000-6
Totals
Centro Médico Antofagasta S.A.
Inmobiliaria Centro Medico Antofagasta S.A.
Integramédica S.A.
Integramédica S.A.
Country
Chile
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Current
Tax Id
Num ber of
Creditor
Com pany
Creditor Nam e
97.023.000-9
0-E
0-E
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.080.000-K
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.080.000-K
97.053.000-2
97.032.000-8
97.053.000-2
97.080.000-K
97.080.000-K
97.080.000-K
97.080.000-K
97.080.000-K
97.053.000-2
97.053.000-2
97.023.000-9
97.023.000-9
76.645.030-K
Banco Corpbanca
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Bice
Banco Chile
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Bice
Banco Security
Banco BBVA
Banco Security
Banco Bice
Banco Bice
Banco Bice
Banco Bice
Banco Bice
Banco Security
Banco Security
Banco Corpbanca
Banco Corpbanca
Banco Itaú
Am ortization
Type
Annual
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Annual
Annual
Monthly
Currency
New Peruvian Sol
US Dollar
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
Nom inal
Interest
rate (%)
Effective
interest
rate (%)
6.59%
8.00%
8.50%
4.70%
4.86%
4.67%
4.43%
4.37%
4.70%
4.43%
4.47%
5.45%
4.70%
6.71%
7.31%
5.50%
5.79%
4.29%
5.62%
4.98%
7.63%
7.31%
7.63%
7.50%
5.25%
7.70%
7.70%
7.70%
7.70%
7.72%
7.70%
7.70%
6.59%
7.80%
7.19%
6.70%
8.00%
8.50%
4.76%
4.92%
4.73%
4.48%
4.42%
4.76%
4.48%
4.52%
5.53%
4.76%
6.83%
7.45%
5.58%
5.87%
4.34%
5.70%
5.04%
7.78%
7.45%
7.78%
7.64%
5.32%
7.85%
7.85%
7.98%
7.98%
7.87%
7.85%
7.85%
6.70%
7.95%
7.43%
Maturity
06/30/2018
01/24/2017
11/05/2018
10/10/2032
02/09/2020
08/10/2031
09/10/2031
09/10/2031
10/10/2032
09/10/2031
08/10/2031
04/30/2019
10/10/2032
01/01/2014
02/04/2014
01/03/2026
12/02/2025
04/05/2020
07/03/2033
04/10/2032
05/13/2014
02/14/2014
05/01/2014
06/01/2014
05/28/2019
02/25/2014
02/25/2014
02/25/2014
03/12/2014
06/30/2018
11/29/2018
09/28/2017
1 to 3
m onths
3 to 12
m onths
Balance at
12/31/2013
Th$
Th$
0
15,439
5,308
16,894
24,004
58,065
22,204
4,998
8,447
1,996
4,942
8,489
1,484
629,368
1,262,248
32,773
22,016
24,293
15,278
36,846
10,599
351,033
5,166
457,969
17,085
100,393
100,393
100,393
100,393
301,120
552,160
160,628
0
702,000
9,256
4,929,057
48,035
15,923
39,607
59,789
144,430
55,230
12,433
19,803
4,964
12,292
25,174
3,479
0
0
81,473
54,377
59,789
34,487
88,415
1,100,000
0
450,000
0
50,767
0
0
0
0
0
0
0
618,000
1,500,064
28,508
4,929,057
63,474
21,231
56,501
83,793
202,495
77,434
17,431
28,250
6,960
17,234
33,663
4,963
629,368
1,262,248
114,246
76,393
84,082
49,765
125,261
1,110,599
351,033
455,166
457,969
67,852
100,393
100,393
100,393
100,393
301,120
552,160
160,628
618,000
2,202,064
37,764
5,163,680
9,436,096
14,599,776
37
At December 31, 2013 - Non-current
Tax Id
Num ber of
Debtor Entity
76.005.001-6
0-E
0-E
95.432.000-6
95.432.000-6
76.012.645-4
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
76.012.653-5
96.359.000-8
96.359.000-8
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.562.220-9
96.613.220-5
76.098.454-K
76.098.454-K
76.398.000-6
Totals
Inmobiliaria Centro Medico Antofagasta S.A.
Integramédica S.A.
Integramédica S.A.
Country
Chile
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Non-current
Tax Id
Num ber of
Creditor
Com pany
Creditor Nam e
97.023.000-9
0-E
0-E
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.053.000-2
97.023.000-9
97.023.000-9
76.645.030-K
Banco Corpbanca
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Security
Banco Corpbanca
Banco Corpbanca
Banco Itaú
Am ortization
Type
Annual
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Annual
Annual
Monthly
Currency
New Peruvian Sol
US Dollar
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
Nom inal
Interest
rate (%)
Effective
interest
rate (%)
Maturity
6.59%
8.00%
8.50%
4.70%
4.86%
4.67%
4.43%
4.37%
4.70%
4.43%
4.47%
5.45%
4.70%
5.50%
5.79%
4.29%
5.62%
4.98%
5.25%
6.59%
7.80%
7.19%
6.70%
8.00%
8.50%
4.76%
4.92%
4.73%
4.48%
4.42%
4.76%
4.48%
4.52%
5.53%
4.76%
5.58%
5.87%
4.34%
5.70%
5.04%
5.32%
6.70%
7.95%
7.43%
06/30/2018
01/24/2017
11/05/2018
10/10/2032
02/09/2020
08/10/2031
09/10/2031
09/10/2031
10/10/2032
09/10/2031
08/10/2031
04/30/2019
10/10/2032
01/03/2026
12/02/2025
04/05/2020
07/03/2033
04/10/2032
05/28/2019
06/30/2018
11/29/2018
09/28/2017
1 to 3
years
From 3 to 5
years
Over 5
years
Th$
Th$
Th$
9,804,188
142,903
42,465
112,538
159,437
405,836
155,192
34,935
56,269
13,948
34,538
67,132
9,885
217,261
145,006
159,437
91,965
248,917
135,382
1,236,000
6,000,000
83,971
19,357,205
24,734,311
12,922
40,699
123,361
159,437
439,258
167,973
37,811
61,680
15,097
37,383
67,132
10,836
217,261
145,006
159,437
91,965
272,873
135,382
3,088,000
7,500,000
34,669
37,552,493
0
0
0
1,247,943
1,044,035
3,746,823
1,432,790
322,528
623,971
128,777
318,869
507,682
109,619
769,467
507,521
1,057,322
670,579
2,575,668
705,580
0
0
0
15,769,174
Balance at
12/31/2013
34,538,499
155,825
83,164
1,483,842
1,362,909
4,591,917
1,755,955
395,274
741,920
157,822
390,790
641,946
130,340
1,203,989
797,533
1,376,196
854,509
3,097,458
976,344
4,324,000
13,500,000
118,640
72,678,872
(*): The loan with Corpbanca corresponds to a syndicated loan where the following banks are involved: Corpbanca with 59%, BancoEstado with 18%, Banco
BICE with 13% and Banco Security with 10%.
38
6.2.2.- The breakdown of financial leasing liabilities is the following:
At June 30, 2014 - current
Current
Tax Id
Num ber of
Debtor Entity
0-E
0-E
0-E
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
78.804.370-8
78.804.370-8
95.432.000-6
95.432.000-6
79.576.810-6
79.576.810-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
Servicios y Abastecimientos a Clínicas S.A
Soc. Instituto de Cardiología el Norte Ltda.
Clinica Reñaca S.A.
Integramédica de Centros Médicos S.A.
Countr
y
Peru
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Creditor Nam e
Banco de Credito del Perú
BBVA Banco Continental del Perú
Banco Santander
Banco Santander
Banco Santander
Banco Security
Banco Bice
Banco Bice
Banco Security
Banco Security
Banco Bice
Banco Santander
Banco Security
Banco Security
Banco Bice
Banco Bice
Banco Corpbanca
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Am ortization
type
Monthly
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Currency
US dollar
US dollar
New Peruvian Sol
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
Nom inal
Interest
Rate (%)
5.30%
6.50%
7.40%
3.87%
4.31%
3.87%
3.90%
2.63%
5.22%
4.77%
7.38%
4.44%
6.80%
5.84%
4.74%
7.23%
7.08%
7.85%
7.44%
6.90%
6.77%
6.71%
7.18%
3.60%
3.53%
6.33%
6.36%
6.22%
6.36%
6.13%
7.09%
6.90%
6.66%
7.57%
6.70%
7.44%
7.38%
7.34%
7.04%
9.35%
7.21%
11.15%
6.86%
7.01%
Effective
Interest
Rate (%)
5.30%
6.50%
7.40%
3.94%
4.40%
3.94%
3.97%
2.67%
5.35%
4.87%
7.63%
4.53%
7.02%
6.00%
4.84%
7.47%
7.31%
8.14%
7.70%
7.12%
6.98%
6.92%
7.42%
3.66%
3.59%
6.52%
6.55%
6.40%
6.55%
6.31%
7.32%
7.12%
6.87%
7.83%
6.91%
7.70%
7.63%
7.59%
7.27%
9.76%
7.45%
11.73%
7.08%
7.24%
1 to 3
m onths
3 to 12
m onths
Th$
Th$
24,808
1,723
3,487
1,388
3,112
7,625
15,170
23,342
21,236
14,157
24,282
21,200
10,286
4,855
15,548
1,471
5,497
35,986
16,598
48,802
41,034
33,292
33,487
32,120
13,579
21,347
25,279
51,353
11,191
18,673
14,701
52,617
10,767
25,450
26,979
36,481
11,827
37,014
22,342
20,752
41,392
3,532
15,054
19,175
71,728
4,132
10,841
4,141
9,449
23,043
25,561
55,098
64,519
43,160
73,547
63,496
30,524
14,265
43,494
4,529
16,919
111,193
51,251
150,210
126,150
102,546
102,898
32,377
9,112
65,325
77,338
156,986
34,176
56,971
45,313
89,500
33,213
78,231
83,267
113,028
36,451
113,885
68,854
64,047
127,399
10,836
46,156
58,796
Balance at
06/30/2014
96,536
5,855
14,328
5,529
12,561
30,668
40,731
78,440
85,755
57,317
97,829
84,696
40,810
19,120
59,042
6,000
22,416
147,179
67,849
199,012
167,184
135,838
136,385
64,497
22,691
86,672
102,617
208,339
45,367
75,644
60,014
142,117
43,980
103,681
110,246
149,509
48,278
150,899
91,196
84,799
168,791
14,368
61,210
77,971
39
At June 30, 2014 - current (continued)
Current
Tax Id
Num ber of
Debtor Entity
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-51
76.398.000-52
76.398.000-52
76.398.000-52
76.398.000-53
76.398.000-54
96.986.050-3
96.986.050-3
96.969.860-9
96.969.860-9
96.969.860-9
96.879.440-k
96.879.440-k
96.879.440-k
79.716.500-K
79.716.500-K
79.716.500-K
79.716.500-K
76.030.075-6
76.030.075-6
Integramédica S.A.
Integramédica S.A.
Exámenes de Laboratorio S.A.
Centro de Diagnóstico Dra. Pilar Gazmuri S.A.
Sonorad II S.A.
Sonorad II S.A.
Sonorad II S.A.
Sonorad I S.A.
Sonorad I S.A.
Sonorad I S.A.
Sonorad I S.A.
Servicios de Gestión Limitada
Countr
y
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Creditor Nam e
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco de Chile
Banco de Chile
TecnoImagen
Andueza & Principal
ING Seguros de Vida
Banco Itaú
Banco Itaú
Banco BICE
Banco BICE
Banco BICE
Banco BCI
Banco Itaú
Banco Itaú
Banco Security
Banco Internacional
Banco Internacional
Banco Internacional
Cruz del Sur Seguros de Vida
ING Seguros de Vida
Am ortization
type
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Currency
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
UF
Nom inal
Interest
Rate (%)
6.76%
7.28%
7.10%
6.76%
6.79%
6.86%
6.58%
7.16%
7.16%
6.61%
6.67%
6.45%
6.76%
6.24%
6.74%
6.13%
21.64%
8.58%
8.19%
7.07%
6.67%
6.80%
7.08%
6.70%
6.50%
4.95%
5.94%
5.57%
6.55%
6.55%
6.55%
5.65%
5.08%
Effective
Interest
Rate (%)
6.97%
7.53%
7.34%
6.97%
7.00%
7.08%
6.78%
7.40%
7.40%
6.82%
6.88%
6.64%
6.97%
6.43%
6.95%
6.31%
23.92%
8.92%
8.50%
7.31%
6.88%
7.01%
7.31%
6.91%
6.70%
5.06%
6.11%
5.71%
6.75%
6.75%
6.75%
5.80%
5.20%
TOTAL
1 to 3
m onths
3 to 12
m onths
Th$
Th$
66,184
25,929
11,308
29,716
16,607
50,922
36,349
46,042
48,292
45,216
9,263
20,993
10,636
1,900
32,940
15,836
3,897
4,336
11,640
2,247
4,277
3,879
5,938
9,635
16,638
1,401
21,972
18,040
5,335
5,209
5,387
17,052
98,769
1,623,796
Balance at
06/30/2014
203,239
80,249
34,971
91,252
50,927
156,311
111,594
142,528
132,577
138,380
28,342
64,194
32,525
5,808
100,768
48,351
0
12,534
36,011
6,896
13,102
11,964
18,288
29,736
11,158
3,315
44,597
54,737
16,395
15,955
16,575
52,703
303,923
269,423
106,178
46,279
120,968
67,534
207,233
147,943
188,570
180,869
183,596
37,605
85,187
43,161
7,708
133,708
64,187
3,897
16,870
47,651
9,143
17,379
15,843
24,226
39,371
27,796
4,716
66,569
72,777
21,730
21,164
21,962
69,755
402,692
4,673,860
6,297,656
40
At June 30, 2014 - Non - current
Non-current
Tax Id
Num ber of
Debtor Entity
Countr
y
Creditor Nam e
Am ortization
type
Currency
Nom inal
Interest
Rate (%)
Effective
Interest
Rate (%)
1 to 3
years
Th$
0-E
0-E
95.431.000-0
95.431.000-0
95.431.000-0
95.431.000-0
78.804.370-8
78.804.370-8
95.432.000-6
95.432.000-6
79.576.810-6
79.576.810-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-6
76.398.000-51
Peru
Peru
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Banco Santander
Banco Santander
Banco Santander
Banco Bice
Banco Security
Banco Security
Banco Bice
Banco Santander
Banco Security
Banco Security
Banco Bice
Banco Bice
Banco Corpbanca
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco BICE
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Banco Itaú
Monthly
Monthly
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
At maturity
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
US dollar
New Peruvian Sol
UF
UF
UF
UF
UF
UF
UF
UF
5.30%
7.40%
3.87%
4.31%
3.87%
5.22%
4.77%
7.38%
4.44%
6.80%
5.84%
4.74%
7.23%
7.08%
7.85%
7.44%
6.90%
6.77%
6.71%
7.18%
6.33%
6.36%
6.22%
6.36%
6.13%
7.09%
6.66%
7.57%
6.70%
7.44%
7.38%
7.34%
7.04%
9.35%
7.21%
11.15%
6.86%
7.01%
6.76%
7.28%
7.10%
6.76%
6.79%
6.86%
6.58%
7.16%
6.61%
6.67%
6.45%
6.76%
6.24%
5.30%
7.40%
3.94%
4.40%
3.94%
5.35%
4.87%
7.63%
4.53%
7.02%
6.00%
4.84%
7.47%
7.31%
8.14%
7.70%
7.12%
6.98%
6.92%
7.42%
6.52%
6.55%
6.40%
6.55%
6.31%
7.32%
6.87%
7.83%
6.91%
7.70%
7.63%
7.59%
7.27%
9.76%
7.45%
11.73%
7.08%
7.24%
6.97%
7.53%
7.34%
6.97%
7.00%
7.08%
6.78%
7.40%
6.82%
6.88%
6.64%
6.97%
6.43%
205,430
31,921
6,688
6,475
39,916
29,494
90,855
169,257
118,225
89,414
39,416
123,818
8,683
32,382
172,581
66,639
249,620
240,651
120,141
262,719
190,113
225,163
456,155
99,499
165,348
64,277
19,179
221,238
38,368
25,983
65,403
261,965
97,633
46,264
260,211
30,382
135,321
172,723
464,328
27,736
12,076
208,478
142,524
397,486
240,356
16,313
404,281
82,872
187,115
95,218
16,881
Over 3
years and
up to 5
years
Th$
46,971
28,499
0
0
0
0
0
0
0
40,989
0
136,105
0
0
0
0
0
0
0
8,454
20,085
61,102
31,480
59,768
0
0
0
0
0
0
0
0
0
0
0
0
7,734
0
0
0
0
0
0
0
0
54,387
14,916
33,592
25,879
3,024
Over 5
years
Balance at
06/30/2014
Th$
0
0
0
0
0
0
0
0
0
0
0
104,503
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
252,401
60,420
6,688
6,475
39,916
29,494
90,855
169,257
118,225
130,403
39,416
364,426
8,683
32,382
172,581
66,639
249,620
240,651
120,141
262,719
198,567
245,248
517,257
130,979
225,116
64,277
19,179
221,238
38,368
25,983
65,403
261,965
97,633
46,264
260,211
30,382
135,321
180,457
464,328
27,736
12,076
208,478
142,524
397,486
240,356
16,313
458,668
97,788
220,707
121,097
19,905
41
At June 30, 2014 - Non - current (continued)
Tax Id
Num ber of
Debtor Entity
Countr
y
Creditor Nam e
Am ortization
type
Currency
Nom inal
Interest
Rate (%)
Effective
Interest
Rate (%)
1 to 3
years
Th$
76.398.000-52
76.398.000-52
76.398.000-52
76.398.000-53
76.398.000-54
96.986.050-3
96.986.050-3
96.969.860-9
96.969.860-9
96.969.860-9
79.716.500-K
79.716.500-K
79.716.500-K
76.030.075-6
76.030.075-6
Integramédica S.A.
Integramédica S.A.
Sonorad I S.A.
Sonorad I S.A.
Sonorad I S.A.
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Banco de Chile
Banco de Chile
TecnoImagen
Andueza & Principal
ING Seguros de Vida
Banco Itaú
Banco Itaú
Banco BICE
Banco BICE
Banco BICE
Banco Security
Banco Internacional
Banco Internacional
Cruz del Sur Seguros de Vida
ING Seguros de Vida
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
UF
UF
UF
UF
UF
UF
UF
6.74%
6.13%
21.64%
8.58%
8.19%
7.07%
6.67%
6.80%
7.08%
6.70%
5.57%
6.55%
6.55%
5.65%
5.08%
6.95%
6.31%
23.92%
8.92%
8.50%
7.31%
6.88%
7.01%
7.31%
6.91%
5.71%
6.75%
6.75%
5.80%
5.20%
TOTAL
Non-current
Over 3
years and
Over 5
up to 5
years
years
Th$
Th$
Balance at
06/30/2014
294,916
140,328
66,589
37,848
0
0
37,632
56,064
19,372
38,310
9,735
30,444
13,702
57,077
3,754
12,961
152,593
869,296
1,712
0
0
1,709
0
0
0
0
0
0
171,869
962,053
0
0
0
0
0
0
0
0
0
0
421,289
518,864
361,505
178,176
0
39,344
56,064
19,372
40,019
9,735
30,444
13,702
57,077
3,754
12,961
745,751
2,350,213
8,711,398
1,814,765
1,044,656
11,570,819
42
At December 31, 2013 - Current
43
At December 31, 2013 - current (Continued)
44
At December 31, 2013, non-current
45
At December 31, 2013, non- current (Continued)
46
6.2.3.-Reconciliation of minimum payments of financial leases
Financial lease obligations are effectively guaranteed as the property rights over the asset are reverted to the
lessor in case of default.
The breakdown by maturity of minimum lease payments and its present value is the following:
Reconciliation of m inim um
paym ents of financial lease,
Lesee
06/30/2014
Gross Value
Interest
12/31/2013
Present
Value
Gross Value
Interest
Present
Value
Less than one year
Betw een one and five years
Over five years
7,221,404
11,538,951
1,117,227
923,748
1,012,788
72,571
6,297,656
10,526,163
1,044,656
8,247,877
14,941,005
1,471,499
2,073,511
2,607,170
137,819
6,174,366
12,333,835
1,333,680
Total
19,877,582
2,009,107
17,868,475
24,660,381
4,818,500
19,841,881
6.2.4.- Bonds
On June 30, 2012, the Head Company issued bonds in the local market for a total of UF 1,550,000 with
maturity on June 30, 2033, as stated in the complementary public deed dated June 19, 2012, which was filed
to the SVS on June 21, 2012.
On this occasion the company issued bond series A, consisting of 3,100 debt securities with a nominal value
of UF 500 each. These bonds were placed directly in the local market at an effective issue rate of 4.34% per
year.
There are certain ratios related to the issue of the bond, which are the following:
a) Consolidated indebtedness ratio. At the end of each calendar quarter the consolidated indebtedness
level shall be no higher than 1.75 times, measured on the balances of the Consolidated interim financial
statements. For these effects, the Financial Indebtedness ratio is defined as a ratio between Financial
Debt and Equity lower than 1.75 times of the Issuer Total.
b) Net Financial Expenses Coverage Ratio. Beginning on 31 march 2012, at the end of each calendar
quarter, the Net Consolidated Financial Expenses Coverage ratio will not be lower than 2.5 times and as
of June 30, 2014, it will not be lower than 3.0 times. Net Financial Expenses Coverage Ratio will be the
ratio between the Issuer’s EBITDA of the last twelve months and the Issuer’s Net Financial Expenses of
the last twelve months. However, the covenant in this section will be considered to be in default only
when the abovementioned Net Financial Expenses Coverage ratio is lower to the level indicated above in
two consecutive quarters.
47
The breakdown of the bonds at June 30, 2014 is the following
Current
Tax Id Num ber
Debtor Entity
76.005.006-6
Nam e Debtor Entity
Country
Chile
Am ortization
Type
Annual
Face Rate
(%)
Currency
UF
4.23%
Effective
Rate (%)
4.34%
Maturity
Date
06/30/2033
TOTALS
1 to 3
m onths
Th$
Non-current
3 to 12
m onths
Th$
Balance at
06/30/2014
Th$
1 to 3 years
Th$
Over 3 and
up to 5
Th$
(13,523)
(7,967)
(21,490)
(21,303)
(21,303)
(13,523)
(7,967)
(21,490)
(21,303)
(21,303)
Over 5
years
Th$
Balance at
06/30/2014
Th$
36,878,269
36,835,663
36,878,269
36,835,663
The breakdown of the bonds at December 31, 2013 is the following
Tax Id Number
Debtor Entity
76.005.006-6
TOTALS
Name Debtor Entity
Country
Chile
Amortization
Type
Annual
Currency
UF
Face Rate (%)
4.23%
Effective Rate
(%)
4.34%
Maturity Date
6/30/2033
1 to 3
months
Th$
Current
3 to 12
months
Th$
Balance at
12/31/2013
Th$
770,426
0
770,426
0
770,426
770,426
1 to 3 years
Th$
Non-current
Over 3 and
Over 5 years
up to 5 years
Th$
Th$
0
0
0
0
35,712,927
35,712,927
Balance at
12/31/2013
Th$
35,712,927
35,712,927
48
NOTE 6.3. DERIVATIVE FINANCIAL INSTRUMENTS
The Group hires derivative financial instruments to cover its financial risks related to exchange rate and
interest rates.
The Group, on June 30, 2010 subscribed derivative currency and interest rate “swap” contracts with the
banks Corpbanca and Security, which denominates a debt in pesos at variable rate into UF at a fixed annual
rate of 4.83%, according to the following chart:
Sw ap
Sw ap
Sw ap
Sw ap
Sw ap
Sw ap
Sw ap
Sw ap
Fair value
valuation at
06/30/2014
Th$
Fair value
valuation at
12/31/2013
Th$
Net equity at
06/30/2014
Net Equity at
12/31/2013
Bank
Maturity
Contract rate
Hedge
Th$
Banco Corpbanca
Banco Corpbanca
Banco Corpbanca
Banco Security
Banco Security
Banco BCI
Banco BCI
Banco BCI
07/02/2018
07/02/2018
07/02/2018
06/30/2018
06/30/2018
11/05/2018
04/01/2014
11/01/2017
Tab 180 + 1%
Tab 180 + 1%
Tab 180 + 1%
Tab 180 + 1%
Tab 180 + 1%
11.42%
11.39%
7.95%
20,000,000
12,124,800
5,466,400
2,408,800
1,792,000
112,064
151,182
478,947
3,341,207
2,024,772
915,491
400,944
342,140
(9,335)
0
(27,949)
2,724,964
1,651,328
746,640
326,996
279,036
(2,982)
(11,060)
(37,247)
(2,936,826)
(1,779,717)
(804,690)
(352,419)
(334,739)
(1,964)
0
(5,880)
(2,320,583)
(1,406,273)
(635,840)
(278,470)
(279,036)
(4,034)
272
3,973
Total
42,534,193
6,987,270
5,677,675
(6,216,235)
(4,919,991)
Instrum ent type
Th$
Th$
(*) Effects in Equity are recorded net of deferred taxes.
These contracts qualify as hedging contracts on recognized liabilities, recognizing the differences in fair
value in equity, as Other Comprehensive Income under “Cash flow hedging reserve” as set forth in IAS 39
and IFRS 7.
NOTE 7
OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS AND
LIABILITIES
NOTE 7.1
OTHER NON-FINANCIAL ASSETS
The breakdown of this area is the following:
Other non-financial assets
Currency
Prepayments of medical fees
Cost of deferred commissions
Prepayments to suppliers for w orks and projects
Prepaid expenses
Guarantees given
Prepayments of medical fees
Prepaid expenses
Guarantees given
Guarantees given
Prepaid expenses
Peruvian New Sol
Peruvian New Sol
Peruvian New Sol
UF
UF
Total
NOTE 7.2
06/30/2014
Current
Non-Current
Th$
Th$
12/31/2013
Current
Non-Current
Th$
Th$
609,826
6,986,047
0
659,718
137,907
6,833
25,312
111,667
4,345
75,560
0
37,258,916
0
47,463
969,619
0
0
0
0
0
604,212
6,491,451
0
407,784
89,503
0
22,516
0
4,504
23,067
0
35,162,023
344,012
56,354
1,306,668
0
0
0
0
0
8,617,215
38,275,998
7,643,037
36,869,057
OTHER NON-FINANCIAL LIABILITIES
The breakdown of this area is the following:
Area
Currency
Deferred income
Termination payments
Sundry creditors
Dividends payable
Guarantees received
Guarantees received
Dividends payable
Sundry creditors
New Peruvian soles
New Peruvian soles
New Peruvian soles
Total
06/30/2014
Current
NonTh$
Th$
12/31/2013
Current
NonTh$
Th$
16,861
1,187
846,164
2,343,071
2,715
90,822
0
10,582
0
0
0
0
459,000
0
0
775,778
12,371
0
574,817
3,150,345
2,634
0
0
4,173
0
0
0
0
609,000
0
0
1,180,364
3,311,402
1,234,778
3,744,340
1,789,364
49
7.2.1.- Breakdown of deferred income:
Area
NOTE 8.
06/30/2014
NonCurrent
current
Th$
Th$
12/31/2013
NonCurrent
current
Th$
Th$
Dental services
Kynesiology services
12,309
4,552
0
0
9,031
3,340
0
0
Total
16,861
0
12,371
0
TRADE DEBTORS AND OTHER ACCOUNTS RECEIVABLE
8.1 Trade debtors and other accounts receivable, gross and net
The breakdown of this area is as follows:
Trade debtors and other account receivables,
Net
Debtors from sales and services
Accrued receivables
Notes receivable
Receivables from staff and other debtors
Other accounts receivable
Other receivables
06/30/2014
Currency
Peruvian New Sol
Peruvian New Sol
Peruvian New Sol
Gross
Accrued receivables
Notes receivable
Other accounts receivable
Other receivables
Accrued receivables
Notes receivable
Employee accounts and sundry debtors
Allow ance for doubtful accounts
Non-Current
Th$
Th$
Peruvian New Sol
Peruvian New Sol
Peruvian New Sol
0
0
0
0
0
0
0
0
17,369,510
15,509,061
7,194,408
3,282,204
1,389,092
1,542,600
42,005
2,861,996
0
0
0
0
0
0
0
0
50,800,836
0
49,190,876
0
Current
Non-Current
Current
Th$
Th$
23,882,440
19,566,094
9,472,626
4,907,439
2,182,565
1,149,779
38,728
1,056,663
62,256,334
Currency
Peruvian New Sol
12/31/2013
NonCurrent
Th$
Th$
Current
18,535,919
18,124,695
5,848,911
3,871,349
2,182,565
1,142,006
38,728
1,056,663
06/30/2014
Currency
Gross
Im pairm ent of trade debtors and other accounts
receivable
Current
0
0
0
0
0
0
0
0
0
12/31/2013
NonCurrent
Th$
Th$
22,651,408
16,945,864
10,627,315
4,213,692
1,389,092
1,544,497
42,005
2,861,996
60,275,869
06/30/2014
Current Non-Current
Th$
Th$
12/31/2013
NonCurrent
Current
Th$
Th$
5,346,521
1,441,399
3,623,715
1,036,090
7,773
5,281,898
1,436,803
3,432,907
931,488
1,897
11,455,498
0
0
0
0
0
0
11,084,993
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
50
8.2.- Overdue not-yet-impaired balances
The maturity terms of debtors and other account receivables that are not impaired are the following:
Trade debtors and other account receivables, overdue and
not im paired, net
With maturity
With maturity
With maturity
With maturity
With maturity
With maturity
With maturity
With maturity
in less than three months
betw een three and six months
betw een six and tw elve months
beyond tw elve months
Balances
06/30/2014
12/31/2013
Th$
Th$
Currency
Peruvian New Sol
Peruvian New Sol
Peruvian New Sol
Peruvian New Sol
11,417,939
4,420,278
10,265,692
507,522
1,000,620
73,158
30,851
29,603
Total trade debtors and other account receivables overdue,
not paid and not im paired
10,387,664
3,486,948
8,577,822
418,388
676,166
49,454
20,869
19,976
27,745,663
23,637,287
The criteria for the impairment of accounts receivable are presented in Note 2.28 b). The balances disclosed
in the adjoining charts are still recoverable and therefore do not show evidence of impairment, according to
the procedures and controls established by management, that would evidence that they will not be
recoverable or billable in the future.
8.3.- Maturities of current receivable balances
The maturity terms of debtors and account receivables are the following:
Currency
06/30/2014
Th$
Peruvian New Sol
16,786,806
4,231,767
817,103
116,332
1,103,165
16,393,292
4,503,036
838,282
138,842
1,342,713
23,055,173
23,216,165
Trade debtors and other account receivables, current, net
With maturity
With maturity
With maturity
With maturity
With maturity
Total current trade debtors, net
12/31/2013
Th$
8.4.- Impairment of trade debtors and other account receivables
The changes in impairment of trade debtors and other accounts receivable is the following:
06/30/2014
Im pairm ent of trade debtors and other accounts receivable
Opening balance
Increase (decrease) of the period
Write-off of impaired financial assets of the period
Closing balance
Currency
Current
Non-Current
Th$
Th$
11,084,993
872,310
(501,805)
11,455,498
0
0
0
0
12/31/2013
NonCurrent
Th$
Th$
Current
10,123,574
1,916,667
(955,248)
11,084,993
0
0
0
0
51
8.5 Breakdown of Other Receivables, net
Other Receivables
06/30/2014
NonCurrent
Current
Th$
Th$
Currency
Reimbursable expenses
Prepayments to suppliers
VAT Credit
Sundry debtors
Prepayments to suppliers
VAT Credit
Reimbursable expenses
New Peruvian Sol
New Peruvian Sol
New Peruvian Sol
Total
12/31/2013
NonCurrent
Current
Th$
Th$
108,622
760,158
1,224,737
89,048
10,946
1,041,069
4,648
0
0
0
0
0
0
0
120,068
252,713
1,006,684
9,624
4,905
519,668
0
0
0
0
3,239,228
0
1,913,662
0
0
0
0
NOTE 9.- BALANCES AND TRANSACTIONS WITH RELATED PARTIES
In accordance with IAS 24, following are disclosed the outstanding balances at the periods closing with
entities which, while related, are outside of the consolidation scope of Cruz Blanca Salud S.A. Further down
are the most significant transactions with related parties included in the eliminations of these financial
statements
9.1.- Balances with related parties (which have not been consolidated):
Tax Id.
12.549.764-0
Related Entity
Clinical Market S.A.
Nature of
relationship
Transaction
description
Transaction term s
Currency
Joint Arrangement
Current account
Over 90 days and up to a year
Chilean pesos
Totals
Balance receivable
06/30/2014
12/31/2013
NonNonCurrent
Current
Current
Current
Th$
Th$
Th$
Th$
366,560
0
485,993
0
366,560
0
485,993
0
Transactions as of
06/30/2014
12/31/2013
First level issuer com pany
Servicios de Gestion Limitada
Tax Id of receiving
entity
Receiving
related entity
Country of
origin
Nature of
relationship
Transaction
description
12.549.764-0
Clinical Market S.A.
Chile
Joint agreement
Services rendered
Transactio
n am ount
Th$
366,561
Im pact in
incom e
Transactio
n am ount
Th$
Th$
0
0
Im pact in
incom e
Th$
0
The transactions with related parties which are controlled by the head company Cruz Blanca Salud S.A. and
that are presented in Note 1, have been eliminated in these financial statements as indicated in paragraph 4
of Note 2.4 a). Those eliminated transactions correspond to the purchase and sale of services between the
different companies of the Group. The most relevant transactions are the sale of hospital and outpatients
services to individuals that are covered by Isapre institutions, among which are those related with Isapre
Cruz Blanca. The breakdown of the main transactions is presented in note 9.2.
52
9.2.- Transactions with related entities
Following is a breakdown of the most relevant transactions carried between related parties included in
these consolidated interim financial statements. Note that amounts do not exceed UF 1,500.
First level issuer com pany
Cruz Blanca Servicios Tecnológicos S.A.
Centro Médico Familiar S.A.
Inmobiliaria Cruz Blanca S.A.
Integramédica S.A.
Integramédica S.A.
Cruz Blanca S.A.
Cruz Blanca S.A.
Cruz Blanca S.A.
Cruz Blanca S.A.
Inmuebles Panamericana S.A.
Cruz Blanca Cía de Seguros S.A.
Inmobiliaria y Constructora CBS S.A.
Cruz Blanca Servicios Profesionales S.A.
Cruz Blanca Servicios Profesionales S.A.
Servicios de Gestión S.A.
Servicios de Gestión S.A.
9.3.-
Tax Id of
receiving
entity
12.549.764-0
76.024.387-6
76.005.001-6
96.501.450-0
76.098.454-K
95.431.000-0
76.398.000-6
96.501.450-0
96.845.430-7
96.501.450-0
96.501.450-0
79.576.810-6
76.238.779-4
95.432.000-6
0-E
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
97.032.000-8
Receiving related entity
Centro Médico Clínica Reñaca S.A.
Integramédica S.A.
Servicios y Abastacemientos a Clínicas S.A.
Integramédica S.A.
Integramédica Perú S.A.C.
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Banco BBVA
Country of
origin
Nature of
relationship
Transaction description
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Perú
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Chile
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Common Head Co.
Affiliate
Affiliate
Affiliate
Affiliate
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Common Director
Services rendered
Services rendered
Interests and restatements
Medical services
Services rendered
Services rendered
Lease
Lease
Services rendered
Services rendered
Professional consulting
Interests and restatements
Lease
Term deposit
Withdraw al of term deposit
Term deposit
Term deposit
Bond purchase
Bond Sale
Bond purchase
Bond Sale
Bond purchase
Bond Sale
Mutual fund contribution
Mutual fund liquidation
Transactions as of
06/30/2014
12/31/2013
Transaction
Im pact in
Transaction
Im pact in
am ount
incom e
am ount
incom e
Th$
Th$
Th$
Th$
2,861,280
85,037
1,215,635
391,470
895,308
136,669
56,929
204,495
60,342
11,012,572
294,728
49,758
42,306
49,758
137,449
311,146
316,212
776,196
778,335
562,820
563,879
250,166
250,078
96,037
96,227
429,290
436,599
114,539,284
114,556,660
22,098,500
22,101,777
0
0
19,953,501
19,956,654
1,722,616
1,722,826
450,440
450,507
8,202,515
8,203,782
4,153,065
4,153,755
10,392,177
10,393,722
8,657,902
8,659,291
457,350
458,260
2,404,437
85,037
1,215,635
328,967
895,308
136,669
56,929
204,495
60,342
11,012,572
294,728
49,758
42,306
49,758
137,449
0
5,066
0
2,139
0
1,058
0
88
0
190
0
7,308
0
17,375
0
3,277
0
0
0
3,153
0
210
0
67
0
1,267
0
689
0
1,545
0
1,388
0
910
2,304,649
0
323,790
128,667
872,575
16,001
64,277
197,990
82,173
11,079,434
285,744
48,016
0
48,016
0
7,494,866
7,493,315
1,483,325
1,489,097
0
0
856,320
862,952
2,225,322
2,232,938
0
0
120,031,760
120,052,927
29,073,149
29,078,647
60,004
60,105
0
0
0
0
0
0
19,103,557
19,107,200
253,367,236
253,415,307
17,081,686
17,085,052
29,894,542
29,900,492
203,562
204,394
1,936,680
0
323,790
108,123
872,575
16,001
61,277
197,990
82,173
11,079,434
285,744
48,016
0
48,016
0
0
1,551
0
5,772
0
0
0
6,632
0
7,616
0
0
0
21,167
0
5,498
0
100
0
0
0
0
0
0
3,643
0
48,071
0
3,366
0
5,950
0
832
Key management compensation
The details of the amounts paid to the members of the Board and Key Management of the Parent Company
is below:
Concepts
Currency
06/30/2014
12/31/2013
Board members compensation
Key management personnel
Th$
Th$
93,205
4,557,485
94,208
3,758,258
The total compensation paid to managers and main executives of the Parent Company is made of the base
salary plus the statutory reward on profits.
Management is made of first-line Managers, Area Managers, Medical Directors and Area Sub-Managers,
and therefore its change is made relevant through the increase in the amount of professionals hired as a
result of new businesses.
Performance bonuses are only granted after the appraisals that the Board carries annually. The amount of
said bonuses paid at June 30, 2014 amounted to Th$ 62,498 (in 2013 it amounted to Th$ 149,215).
53
NOTE 10.- INVENTORY
The breakdown of this accounting area is the following:
Classes of Inventory
06/30/2014
Th$
Drugs
Clinical supplies
Consumables
Other Inventory
Total
12/31/2013
Th$
885,140
761,542
526,210
90,594
973,016
693,403
575,101
165,575
2,263,486
2,407,095
06/30/2014
Th$
12/31/2013
Th$
Following is presented additional information about inventory:
Inventory additional inform ation
Inventory costs recognized as expense during the period
Amount of inventory w rite-dow ns
(9,000,468)
(10,433)
(6,912,263)
(3,294)
NOTE 11.- INTANGIBLE ASSETS
11.1.- The breakdown of this accounting area is the following:
Intangible Assets, Net
Client Portfolio, Net
Patents, Trademarks and Other Rights, Net
Softw are, Net
Other Identifiable Intangible Assets, Net
Total Intangible Assets, Net
Intangible Assets, Gross
Client Portfolio, Gross
Patents, Trademarks and Other Rights, Gross
Softw are, Net
Other Identifiable Intangible Assets, Gross
06/30/2014
Th$
12/31/2013
Th$
2,974,153
89,634,531
11,623,171
798,126
2,337,751
89,265,182
11,010,937
329,626
105,029,981
102,943,496
06/30/2014
Th$
12/31/2013
Th$
7,039,765
89,765,263
23,827,127
831,555
6,246,472
89,383,518
22,189,769
361,257
121,463,710
118,181,016
06/30/2014
12/31/2013
Th$
Th$
Client Portfolio
Patents, Trademarks and Other Rights
Softw are
Other Identifiable Intangible Assets
(4,065,612)
(130,732)
(12,203,956)
(33,429)
(3,908,721)
(117,772)
(11,179,396)
(31,631)
Total accum ulated am ortization and im pairm ent
(16,433,729)
(15,237,520)
Total Intangible Assets, Gross
Accum ulated Am ortization and Im pairm ent
54
As the main intangible asset is "Patents, Trademarks and Other Rights," following is the breakdown of this
line at net value, at the closing date of these financial statements:
Accum ulated Am ortization and Im pairm ent
Useful
06/30/2014
12/31/2013
Life
Th$
Th$
Isapre Cruz Blanca
Indefinite
37,393,578
37,387,670
Clínica Antofagasta
Indefinite
5,899,437
5,899,437
Clínica Reñaca
Indefinite
3,765,483
3,765,483
Clínica San José Arica
Indefinite
1,337,361
1,337,360
Clinical Service
Indefinite
568,280
568,280
Integramédica
Indefinite
36,371,877
36,376,855
Sonorad
Indefinite
1,554,728
1,295,607
Centro Diagnóstico Doctor Pilar Gazmuri
Indefinite
367,616
367,616
Resomasa
Indefinite
541,854
512,768
Anglolab
Indefinite
1,710,896
1,754,106
Other rights
15 years
247,565
117,772
Other rights (Accumulated amortization)
15 years
(124,144)
(117,772)
89,634,531
89,265,182
Total accum ulated am ortization and im pairm ent
Within Patents, Trademarks and Other rights, the most significant items are the brands with an indefinite
useful life. These will continue to be used and will generate economic benefits for the head company and the
whole of Group CBS.
Of those intangibles with definite useful life, these are in the range disclosed in note 11.2 below, and those
with an indefinite useful life have an impairment test applied as set in note 2.28 a).
11.2.- Details of useful lives applied to the intangibles is the following:
Estimated useful lives or amortization rates
used
Trademarks
Client portfolio
Patents and other rights
Software
Licenses and programs
Minimum Life
Maximum Life
15
12
1
1
1
15
58
48
48
5
55
11.3.- Intangibles roll-forward is as follows:
Current Period
Client
Portfolio, Net
Th$
Patents,
tradem arks
and other
rights
Th$
Softw are,
Net
Th$
Other
identifiable
intangible assets,
Net
Th$
Total
Intangible
Assets, Net
Th$
Opening Balance
Reclassifications
Additions
Divestments
Amortization
Increase (Decrease) due to change foreign exchange rate
Other increase (decrease)
2,337,751
752,629
0
0
(156,891)
40,664
0
89,265,182
0
0
0
(7,272)
117,500
259,121
11,010,937
0
1,721,398
(96,869)
(1,021,553)
9,258
0
329,626
0
481,062
(18,719)
(1,805)
7,962
0
102,943,496
752,629
2,202,460
(115,588)
(1,187,521)
175,384
259,121
Balances at 06/30/2014
2,974,153
89,634,531
11,623,171
798,126
105,029,981
Current Period
Opening Balance
Reclassifications (1)
Additions
Divestments
Amortization
Increase (Decrease) due to change foreign exchange rate
Other Increase (Decrease)
Balances at 12/31/2013
Client
Portfolio, Net
Patents,
tradem arks
and other
rights
Softw are,
Net
Other
identifiable
intangible assets,
Net
Total
Intangible
Assets, Net
Th$
Th$
Th$
Th$
Th$
4,157,866
1,207,229
0
0
(319,882)
0
(2,707,462)
85,740,085
1,295,607
2,199,303
0
(15,396)
(1,810)
47,393
7,497,630
(10,590)
5,527,532
(135,270)
(1,942,724)
0
74,359
0
0
329,626
0
0
0
0
97,395,581
2,492,246
8,056,461
(135,270)
(2,278,002)
(1,810)
(2,585,710)
2,337,751
89,265,182
11,010,937
329,626
102,943,496
(1) The reclassifications are generated in the acquisition accounting process in accordance with IFRS 3
Business Combinations. These refer to confirmations of the investment fair value allocated between
intangibles and goodwill in a period of up to 12 months after the date of control, as per paragraph 45 of
IFRS 3.
11.4.- Intangible amortization charges to income are the following:
Line item in incom e statem ent that includes the
am ortization of identifiable intangible assets
Cost of sales
Management expense
Other earnings (loss)
Other expense, by function
TOTAL
01/01/2014
01/01/2013
04/01/2014
04/01/2014
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
340,271
847,250
0
0
796,284
810,058
0
0
178,214
413,788
0
0
776,888
306,750
0
0
1,187,521
1,606,342
592,002
1,083,638
56
NOTE 12.- INVESTMENTS IN AFFILIATES
12.1 Investments in affiliates
Investments in affiliates of Cruz Blanca Salud S.A. included in the consolidation of these financial
statements present the following changes:
At June 30, 2014.
Tax Id Num ber
96.501.450-0
76.098.454-K
96.562.210-1
96.562.220-9
96.529.970-K
96.613.220-5
76.785.130-8
76.117.164-K
76.188.053-5
76.238.779-4
76.282.191-5
Com pany Nam e
Integramédica S.A.
Inversiones CBS SPA S.A.
Cruz Blanca Cía de Seg. de Vida S. A.
Opening
01/01/2014
Th$
Accrued
Incom e
Th$
Dividends
Reserve
Th$
Paid
dividends
Th$
Capital
Increase
Th$
Derivatives
(Sw ap)
Th$
26,500,237
107,130,568
1,982,081
13,131,076
14,270,467
4,651,720
884,869
29,482
13,045,906
15,352,068
2,275,337
9,030,065
2,744,208
(43,844)
(271,573)
1,277,239
(113,488)
54,413
2,389
(1,017,308)
291,647
(541,229)
(2,709,026)
(823,260)
0
0
(383,164)
0
0
0
0
(87,494)
0
(2,175,127)
0
0
0
0
0
0
0
0
0
0
199,253,811
11,412,519
(4,002,944)
(2,175,127)
Accrued
Incom e
Th$
Dividends
Reserve
Th$
23,577,083
101,568,180
2,042,739
13,487,709
12,195,424
4,599,910
315,907
16,709
2,399,820
9,799,251
0
4,175,934
8,531,717
(37,631)
(224,750)
1,570,549
81,727
568,962
11,657
(243,183)
743,079
(461,294)
(1,252,780)
(2,559,515)
0
0
(471,165)
(24,518)
0
0
0
(222,924)
0
0
(677,744)
0
0
0
0
0
0
0
0
0
0
0
0
0
1,080,000
0
0
0
10,880,919
5,000,000
2,736,631
0
(71,993)
0
0
0
0
0
0
2,643
0
0
0
339,923
(23,027)
(131,883)
(104,341)
(5,399)
0
1,116
5,707
32,662
0
170,002,732
14,716,767
(4,530,902)
(677,744)
19,697,550
(69,350)
114,758
0
0
0
0
0
0
0
0
0
1,700,000
1,150,000
2,850,000
Other
Th$
0
(55,703)
0
0
0
0
0
0
(8,055)
0
0
0
0
0
0
(5)
0
0
30
682,188
(14)
0
(63,758)
682,199
Closing
balance at
Th$
30,646,149
108,995,813
1,938,237
12,859,503
15,164,537
4,538,232
939,282
31,901
12,702,731
17,256,207
2,884,108
207,956,700
At December 31, 2013:
Tax Id Num ber
96.501.450-0
76.098.454-K
96.562.210-1
96.562.220-9
96.529.970-K
96.613.220-5
76.785.130-8
76.117.164-K
76.188.053-5
76.238.779-4
76.282.191-5
Com pany Nam e
Integramédica S.A.
Cruz Blanca Cía de Seg. de Vida S. A.
Opening
01/01/2013
Th$
Paid
dividends
Th$
Capital
Increase
Th$
Derivatives
(Sw ap)
Th$
Other
Th$
Closing
balance at
Th$
26,500,237
107,130,568
1,982,081
13,131,076
14,270,467
4,651,720
884,869
29,482
13,045,906
15,352,068
2,275,337
199,253,811
12.2 Summarized information on affiliates
06/30/2014
Tax Id
96.501.450-0
76.098.454-K
96.562.210-1
96.562.220-9
96.529.970-K
96.613.220-5
76.785.130-8
76.117.164-K
76.188.053-5
76.238.779-4
76.282.191-5
Com pany nam e
12/31/2013
Total Assets
Total
Liabilities
Incom e
Total Assets
Total
Liabilities
Incom e
Th$
Th$
Th$
Th$
Th$
Th$
Integramédica S.A.
Cruz Blanca Compañía de Seguros de Vida S. A.
141,888,750
161,319,070
4,129,464
37,046,480
40,220,280
10,337,535
10,360,795
190,835
21,067,170
18,380,483
4,560,155
109,687,535
52,153,559
482,951
18,636,873
21,940,152
3,506,654
9,400,693
158,934
7,523,895
1,121,881
1,675,858
9,488,775
2,754,760
(82,485)
(325,063)
1,567,697
(181,307)
55,086
2,388
(993,993)
291,800
(541,268)
127,543,237
159,213,065
4,211,287
35,802,938
37,859,853
10,483,639
10,822,389
191,580
21,814,890
16,696,538
2,778,636
99,698,728
51,910,793
482,288
17,055,134
20,698,915
3,470,189
9,917,374
159,886
7,975,263
1,342,196
503,071
4,387,766
8,554,186
(70,798)
(214,201)
2,037,477
175,790
576,118
11,665
(212,505)
743,456
(461,340)
TOTAL
449,501,017
226,288,985
12,036,390
427,418,052
213,213,837
15,527,614
On June 5, 2014, Cruz Blanca Salud S.A. paid Th$ 1,1700,000 in Inversiones Clínicas CBS S.A. as capital
contribution.
On March 12, 2014, Cruz Blanca Salud paid Th$ 1,150,000 as capital increase in Cruz Blanca Compañía de
Seguros de Vida S.A.
57
On December 31, 2013, Cruz Blanca Salud paid Th$ 1,080,000 as capital increase in Inversiones Clínicas
Pukará S.A.
On December 23, 2013, Cruz Blanca Salud made capital contributions amounting to Th$ 10,880,919 to CBS
International for the execution of its expansion plan in Peru.
During the first half of 2013 the Head Company Cruz Blanca Salud S.A. established the affiliate company
Cruz Blanca Compañía de Seguros de Vida S.A., paying a capital contribution of $2,736,631.
On the first-half of 2013 Cruz Blanca Salud S.A. has made capital contributions of Th$ 5,000,000 in
12.3 Joint arrangements
During June 2013 Servicios de Gestión Limitada entered into a joint agreement with Clinical Market S.A.,
with a contribution to the shared account of UF 12,500.
NOTE 13.- BUSINESS COMBINATIONS
During 2014 there have been no processes that qualify as a "business combination" in accordance
to IFRS 3.
Acquisitions during 2013
I)
Acquisition of Mediperú S.A.
Through the essential matter filed on September 10, 2013, Cruz Blanca Salud S.A. communicated that its
subsidiary Cruz Blanca Salud Perú S.A.C. it had acquired 100% of the share ownership of the companies
Mediperú S.A. and Panaholdings Investment Corp. Both companies carry - under the brand "MediPerú" in the Republic of Peru the business of diagnosis through imaging, MRI, tomography, X-rays and
laboratory sample taking in the city of Lima. The purchase price amounted to the US$ 5.8 million, amount
which was financed in its entirety with funds of the acquiring company.
MediPerú, Panaholding
8/31/2013
Th$
Business combination cost
Cash
Contingent payment
Total cost of business combination
3,021,787
164,824
3,186,611
Identifiable assets acquired and liabilities assumed
Other assets
Goodwill
Net property, plant and equipment
Accounts payable
Other liabilities
Net assets
10,124
894,610
0
3,790,433
(581,843)
(557,849)
3,555,475
Cruz Blanca Salud Perú S.A.C. (100%)
3,555,475
Bargain purchase
Total
0
(368,864)
3,186,611
58
II)
Acquisition of Anglolab S.A.
On July 16, 2013 the Peruvian subsidiary Cruz Blanca Salud Perú S.A.C. entered in a share purchase
agreement through which it acquired 70% of the share ownership - and therefore, control - of the company
Anglolab S.A. a company established under the laws of the Republic of Peru, whose business is to render
clinical laboratory, blood bank and pathologic anatomy services in different hospitals and health centers in
Lima and other provinces of the Republic of Peru. The purchase price amounted to US$ 6 million, and is
subject to financial and accounting adjustments. The price was paid with funds of the acquiring entity.
7/16/2013
Th$
Anglolab
Business combination cost
Cash
Contingent payment
3,249,384
600,145
Total cost of business combination
3,849,529
Identifiable assets acquired and liabilities assumed
Other assets
Net property, plant and equipment
Accounts payable
Other liabilities
45,329
3,634,925
1,303,014
(922,876)
(861,994)
Net assets
3,198,398
Cruz Blanca Salud Perú S.A.C. (70%)
2,238,879
Goodwill
(959,520)
1,610,651
Total
2,890,010
NOTE 14.- GOODWILL
Goodw ill, Net
06/30/2014
Th$
12/31/2013
Th$
Goodw ill, Net
83,720,463
83,533,337
Total Goodw ill Net
83,720,463
83,533,337
Goodw ill, Gross
06/30/2014
Th$
12/31/2013
Th$
Goodw ill, Gross
83,720,463
83,533,337
Total Goodw ill Gross
83,720,463
83,533,337
Accum ulated am ortization and im pairm ent
06/30/2014
Th$
12/31/2013
Th$
Purchased goodw ill
0
0
Total Accum ulated am ortization and im pairm ent
0
0
59
14.2.- The roll-forward of Goodwill is the following:
Changes in Goodw ill 2014
Goodw ill, Net
Th$
Increase (decrease) from changes in the foreign exchange rate
83,533,337
Total at 06/30/2014
83,720,463
Changes in Goodw ill 2012
187,126
Goodw ill, Net
Th$
Additions and reclassifications (1)
85,123,348
(1,590,012)
Total at 12/31/2013
83,533,336
(1) Additions at December 31, 2013 consist of:
Additions and reclassifications as of Decem ber 31, 2013
Th$
Direct Goodw ill in acquisitions made by CBS Internacional S.A.
Decrease in minority interest
Goodw ill in acquisition of Sonorad S.A. allocated as trademark
1,531,722
(1,826,127)
(1,295,607)
Total at 12/31/2013
(1,590,012)
Subsequent movements of goodwill are generated in the context of purchase accounting of IFRS 3. in the
case of Clinical Service S.A. the compliance with the 12-month period at June 30, 2013. In the case of
Sonorad S.A. this term ended on September 2013. In the case of the acquisitions of 2013 made through CBS
Perú, as part of CBS Internacional S.A., the updating of the process concludes in July 2014 for Anglolab S.A.
and in September 2014 for MediPeru S.A.
The abovementioned goodwill correspond to the amount determined at the date of change of control and
therefore when the 12-month period for the "acquisition accounting" period starts, as per IFRS 3.
14.3
Impairment test on goodwill
At each annual closing of Group CBS closing, a qualified third party is charged with the assessment and
application of an impairment test on each goodwill that has been in the financial statements for over a year.
Goodwill acquired during the period are valued and allocated as required by IFRS 3 and presented in Note
13.
Goodwill current at the period's end and included in a Cash Generating Unit (CGU) are the following and
are shown next to their impairment tests.
60
Cash Generating Unit for Im pairm ent Test at 06/30/2014
CGU
1
2
3
4
5
6
7
8
9
Legal entity nam e
Servicios Clínicos Domiciliarios S.A.
Sonorad I S.A.
Sonorad II S.A.
Centro Diágnostico Doctora Pilar Gazmuri S.A.
Cruz Blanca Salud Perú S.A.C.
Integramedica S.A.
Integramedica S.A.
Integramedica S.A.
Integramedica S.A.
Com m ercial nam e
Isapre Cruz Blanca
Clínica Antofagasta
Clínica Reñaca
Clínica San Jose Arica
Clinical Service
Sonorad
Sonorad
Doctora Pilar Gazmuri
Resomasa
Integramedica
Clínica Santa Lucía
Biolab
Labatría
Subtotales
Cash Generating Units acquired during 2014 (2)
Legal Entity Nam e
AngloLab S.A.
Mediperú S.A.
Totales
Total Unidad Generadora de Flujo
Direct
goodw ill
(1)
Th$
Indirect
goodw ill
(1)
Th$
Brand
Th$
8,779,115
2,616,391
4,586,287
288,828
1,007,067
1,749,083
0
420,310
1,775,135
55,121,804
0
0
0
0
0
0
0
0
0
3,044,690
0
0
0
2,898,551
167,304
92,552
37,387,670
5,899,437
3,765,483
1,337,360
568,280
1,295,607
0
367,616
512,768
36,376,855
0
0
0
76,344,020
6,203,097
87,511,076
Direct
goodw ill
(1)
Th$
986,220
0
Indirect
goodw ill
(1)
Th$
Net value of
Recoverabl
C.G.U. Book
assets at fair
e value
Value
value in
(Value in
affiliate
use)
Th$
Th$
Th$
26,879,339
25,078,776
24,441,603
7,781,697
1,749,638
5,548,249
0
764,096
2,010,929
29,839,858
0
0
0
73,046,124
33,594,604
32,793,373
9,407,885
3,324,985
8,592,939
3,044,690
1,552,022
4,298,832
121,338,517
2,898,551
167,304
92,552
0
0
Net value of
C.G.U. Book
assets at fair
Value
value in
Th$
Th$
Th$
1,754,106
936,623
3,676,949
0
3,396,077
3,396,077
986,220
0
1,754,106
77,330,240
6,203,097
89,265,182
105,498,888
42,604,202
39,655,254
12,023,259
4,621,712
13,226,319
0
2,422,581
4,720,788
143,354,699
0
0
0
Brand
(1) Direct and indirect goodwill are made of the amount directly generated in the business combination
and the amounts that already existed in the accounting of the acquired companies.
The impairment tests applied at the closing of the financial statements to the goodwill detailed above
indicate that their value in use are greater than the book values of the CGU, and therefore there is no
impairment of said investments.
Variables used in the calculation of the value in use of the CGU are made from the characteristics of each
business unit and on the basis of the requirements in paragraph 134 d) of IAS 36, as described below:
a)
Key assumptions for the projected cash flows: In the Hospital and Outpatients segments the main
variables are the occupancy rates of installations and medical equipment, as well as the ability to
transfer prices, mainly, the fluctuations in the costs of personal and supplies; in the Insurer
segment the variables are the average accident rates of contributors and beneficiaries, and the
commercial ability to adjust the contributions.
b)
Method used to estimate future values of key variables: this is based on the historic information
analysis, as well as assumptions and management's business plans, plus publicly available
information on the industry and regulations.
c)
Cash flows projection term: based on IAS 36, assessments are made each five years, with the sole
exception of the hospital segment which is made each 10 years, in order to link the cash flows to
the target occupancy levels and therefore avoid inferences related to perpetuity growth rate higher
than zero after the fifth year.
Perpetuity growth rates: the impairment analyses do not consider perpetuity growth rates other
than zero.
d)
e)
(2)
Discount rates: the discount rates used in the different impairment tests are those derived from
the application of the Capital Pricing Method (CAPM) and therefore the rates correspond to the
Weighted Average Cost of Capital (WACC).
The CGUs listed in the chart correspond to recent acquisitions and there is no evidence of
impairment at the closing date of these financial statements.
The parameters used in the WACC calculation are obtained from public sources and, therefore,
verifiable by any interested third party.
Finally, as the projections are made in a constant value currency, the discount rates are real rates.
61
NOTE 15.- PROPERTY, PLANT AND EQUIPMENT
Classes of Property, Plant and Equipm ent, Net (Disclosure)
Construction in Progress, Net
Land, Net
Buildings, Net
Plant and Equipment, Net
Information technology equipment, Net
Fixed Installations and Accessories, Net
Motor Vehicles, Net
Leasehold Improvements, Net
Leased assets, Net
Other Property, Net
Total Property, Plant, and Equipm ent, Net
Classes of Property, Plant and Equipm ent, Gross (Disclosure)
06/30/2014
12/31/2013
Th$
Th$
7,279,737
19,846,680
29,291,058
13,040,288
3,084,870
15,105,157
146,856
4,554,581
26,352,660
1,956,552
12,704,160
19,899,424
24,467,592
12,403,379
2,769,705
11,797,751
161,003
5,056,791
26,362,333
1,291,155
120,658,439
116,913,293
06/30/2014
12/31/2013
Th$
Th$
7,279,737
19,846,680
34,738,091
53,058,658
9,250,056
22,634,989
288,213
7,432,531
38,276,217
2,071,123
Construction in Progress, Gross
Land, Gross
Buildings, Gross
Plant and Equipment, Gross
Information technology equipment, Gross
Fixed Installations and Accessories, Gross
Motor Vehicles, Gross
Leasehold Improvements, Gross
Leased assets, Gross
Other Property, Gross
Total Property, Plant, and Equipm ent, Gross
Classes of Accum ulated Depreciation and Im pairm ent in Property, Plant and
Equipm ent (Disclosure)
12,704,160
19,899,424
29,388,132
50,456,639
8,324,334
17,735,889
301,135
7,422,946
37,177,790
1,940,463
194,876,295
185,350,912
06/30/2014
12/31/2013
Th$
Th$
Buildings
Plant and Equipment
Information technology equipment
Fixed Installations and Accessories
Motor Vehicles
Leasehold Improvements
Leased assets
Other Property
(5,447,033)
(40,018,370)
(6,165,186)
(7,529,832)
(141,357)
(2,877,950)
(11,923,557)
(114,571)
(4,920,540)
(38,053,260)
(5,554,629)
(5,938,138)
(140,132)
(2,366,155)
(10,815,457)
(649,308)
Total Accum ulated Depreciation and Im pairm ent in Property, Plant and
Equipm ent
(74,217,856)
(68,437,619)
Accumulated Depreciation and Impairment,
62
15.2.- The following tables present the reconciliation of changes in property, plant and equipment, by class at June 30, 2014 and
December 31, 2013:
Current Period
Construction
in Progress
Land
Buildings,
Net
Plant and
Equipm ent,
net
IT
Equipm ent,
net
Fixed
installations and
accessories, net
Motor
vehicles,
Net
Leasehold
Im provem ents,
Net
Leased
assets
Other Property,
Plant and
Equipm ent, Net
Property, Plant
and Equipm ent,
Net
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Internal reclassifications
Additions
Write offs
Depreciation expense
Increase (Decrease) due to foreign exchange
fluctuations
12,704,160
(7,624,283)
2,111,113
(18,073)
0
106,820
79,867
28,160
89,136
8,214
40,893
0
0
62,644
81,637
116,913,293
0
8,820,616
(40,493)
(5,532,348)
497,371
Changes, Total
(5,424,423)
(52,744)
4,823,466
636,909
315,165
3,307,406
(502,210)
(14,147)
(9,673)
665,397
3,745,146
7,279,737
19,846,680
29,291,058
13,040,288
3,084,870
15,105,157
(341,207)
5,042,644
26,352,661
1,956,551
120,658,439
Prior period
Construction
in Progress
Land
Buildings,
Net
Plant and
Equipm ent,
net
IT
Equipm ent,
net
Fixed
installations and
accessories, net
Motor
vehicles,
Net
Leasehold
Im provem ents,
Net
Leased
assets
Other Property,
Plant and
Equipm ent, Net
Property, Plant
and Equipm ent,
Net
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
7,455,708
2,094,867
3,249,353
617,979
(181,569)
(1,374,103)
200,509
0
15,751
0
(9,725)
(46,532)
5,478,637
(138,997)
728,687
0
0
(1,009,423)
22,301,961
(510,943)
6,767,558
132,026
(164,034)
(2,603,213)
Internal reclassifications
Additions
Acquisition from business combinations
Write offs
Increase (Decrease) from restatement recognized
inIncrease
equity (Decrease) due to foreign exchange
fluctuations
Changes, Total
19,899,424
(132,611)
0
0
0
24,467,592
5,044,732
262,930
0
(512,356)
5,449,123
(998,463)
7,955,021
5,754
(9,391)
0
16,043,107
0
2,820,558
1,820
0
0
24,230,908
375,234
728
159,728
0
(808,462)
12,403,379
1,228,274
721,208
(12,354)
(1,389,355)
11,765,990
(472,719)
2,159,985
1,283,778
(40,705)
(2,277,443)
2,769,705
(203,066)
950,865
(429)
(440,419)
3,081,391
(177,684)
801,968
56,291
(429)
(847,118)
11,797,751
3,066,852
1,174,875
0
(975,214)
161,003
0
10,571
(986)
(511,795)
5,056,791
0
17,154
(8,651)
(22,650)
26,362,334
(374,911)
1,964,480
0
(1,661,886)
1,291,154
(1,004,987)
1,607,420
0
(18,673)
561,719
(3,647)
564,460
375,260
(208)
(174,935)
96,569,053
167,648
25,064,069
2,632,636
(406,061)
(9,141,229)
2,242,118
0
1,082,255
926,877
0
0
0
0
0
232,986
0
896
301,220
(48,316)
0
19,673
(437,094)
(101,741)
86,234
(84)
(144,630)
(57,306)
(7,178)
0
1,000
(2,113)
0
(2,653)
208,646
(2,981)
(28,514)
(194,625)
7,255,037
3,856,317
236,684
637,389
(311,686)
4,342,043
(39,506)
(421,846)
4,060,373
729,435
20,344,240
12,704,160
19,899,424
24,467,592
12,403,379
2,769,705
11,797,751
161,003
5,056,791
26,362,334
1,291,154
116,913,293
(20,316)
63
15.3.- The Assets subject to financial leases are the following:
Property, Plant and Equipm ent in financial lease,
Net
06/30/2014
Th$
Buildings in financial lease
Plant and equipment in financial lease
IT equipment in financial lease
Other property, plant and equipment in financial lease
12/31/2013
Th$
6,050,873
17,990,211
2,311,578
-
Total
6,140,971
18,162,795
2,315,718
253,790
26,352,662
26,873,274
15.4.- Restrictions on Property, plant and equipment
Some affiliates of the Group hold real estate mortgages (See Note 30).
NOTE 16.- INVESTMENT PROPERTY
The composition and movement of this accounting area at June 30, 2014 and at December 31, 2013 is
the following:
16.1.- Composition and changes of investment property.
Investm ent property, Fair Value Method
06/30/2014
Th$
12/31/2013
Th$
Opening balance
Other increase (decrease), investment property
Changes in investm ent properties, fair value m odel, total
1,768,412
(20,068)
0
(20,068)
1,803,014
(40,134)
5,532
(34,602)
Total
1,748,344
1,768,412
Investment property of the Group corresponds to physical space destined to be exploited as leases, in
which contracts it is established the responsibility of the lessor to maintain the assets.
Depreciation is calculated using the straight-line method, and the useful life assigned to these goods is of
60 years.
The book values do not differ significantly of the fair values.
16.2.- Investment property income and expense
Incom e and expense, investm ent property
Income amount from lease of investment properties
01/01/2014
06/30/2014
Th$
57,534
01/01/2013
06/30/2013
Th$
53,795
04/01/2014
06/30/2013
Th$
23,026
04/01/2014
06/30/2012
Th$
35,341
64
NOTE 17.- CURRENT TAX ASSETS AND LIABILITIES
a) Following is a breakdown of current tax assets and liabilities, by Company:
06/30/2014
Current tax assets and liabilities
Balance
Asset
Th$
Liability
Th$
Inversiones Clínica Pukará S.A.
Integramédica S.A.
Corporacion Medica de Arica S.A.
Inversiones CBS SPA.
Totals
1,163,691
446,860
246,344
98,335
2,130,282
586,865
0
13,495
46,203
99,934
4,832,009
Net consolidated asset (liability) position
4,593,605
0
0
0
0
139,612
0
748
13,479
55,605
28,960
238,404
12/31/2013
Balance
Asset
Liability
Th$
Th$
Integramédica S.A.
Corporacion Medica de Arica S.A.
840,694
0
410,637
282,634
2,750,673
2,380,254
519,658
42
25,168
526,972
143,244
3,011
0
1,037
26,512
225,156
0
82,995
4,660
0
103,155
108,389
83,236
0
Totals
7,882,987
635,140
Net consolidated asset (liability) position
7,247,847
65
b) Following is a breakdown of current tax assets and liabilities by concept:
06/30/2014
Th$
12/31/2013
Th$
Assets
Monthly tax prepayments
Absorbed profits prepayment
Training expense
Arica Law
Prior year income tax
1,941,617
1,188,719
101,119
336,730
3,633,289
4,399,614
1,638,721
275,008
336,352
2,091,777
Total assets
7,201,474
8,741,472
Income tax reserve
Other taxes payable
2,604,825
3,044
1,440,738
52,887
Total liabilities
2,607,869
1,493,625
Total net asset (liability) position
4,593,605
7,247,847
Liabilities
NOTE 18.- EMPLOYEE BENEFITS
06/30/2014
Area
12/31/2013
Current
Non-Current
Current
Non-Current
Th$
Th$
Th$
Th$
Performance Bonus Reserve
1,746,192
0
856,307
0
Total
1,746,192
0
856,307
0
66
NOTE 19.- DEFERRED INCOME TAX
19.1.- Deferred tax balances, by company is the following:
06/30/2014
Deferred taxes
Integramédica S.A.
Corporacion Médica de Arica S.A.
TOTALS
Balance
Asset
Th$
Liability
Th$
0
267,623
109,818
0
2,757,836
25,880
352
520,817
1,051,655
341,876
288,713
8,615,364
383,723
1,103,178
7,868,126
834,008
89,471
6,231
28,821
1,433,454
96,982
0
5,364,570
20,459,358
12/31/2013
Deferred taxes
Balance
Asset
Th$
Liability
Th$
Promotora S.A.
Integramédica S.A.
Corporacion Médica de Arica S.A.
0
0
260,727
58,351
0
3,009,033
15,512
0
729,198
288,196
434,586
126,718
8,550,916
0
532,000
1,096,568
7,333,167
892,152
133,797
6,231
1,484,150
96,577
22,565
0
TOTALS
4,922,321
20,148,123
67
19.2.- The origin of deferred taxes is the following:
Deferred tax assets
06/30/2014
Th$
12/31/2013
Th$
Related to property, plant and equipment
Related to amortizations
Related to accumulations (or accruals)
Related to Provisions
Related to Purchase Option Funds
Related to Financial Instruments
Related to Tax Losses
Relativos a existencia
Related to Others
Related to Assets in Leasing
Related to Tax Goodw ill
204,739
255
119,450
9,225,743
747,872
1,035,266
14,082,038
18,787
37,422
4,277,025
529,976
580,707
0
30,247
9,337,108
681,559
1,146,648
13,036,692
0
21,165
4,333,335
540,383
Total
30,278,573
29,707,844
Deferred tax liabilities
06/30/2014
Th$
12/31/2013
Th$
Related to property, plant and equipment
Related to intangibles
Related to contributions declared and not paid
Related to Financial Instruments
Related to Leasing
Related to Others
Related to Deferred Commissions
Related to Prescriptions
Related to Brands
3,701,183
2,401,908
1,721,682
474,862
4,978,887
1,651,532
9,008,809
3,528,372
17,906,126
4,192,043
2,375,421
1,571,237
47,426
5,490,484
1,955,887
8,437,204
3,627,023
17,236,921
Total
45,373,361
44,933,646
19.3.- Changes in deferred taxes are the following:
Roll-forw ard of deferred tax assets
Opening balance of deferred tax assets
Increase (decrease) in deferred tax assets
Acquisition in business combinations of deferred tax assets
Other increase (decrease) in deferred tax assets
Closing balance of deferred tax assets
Roll-forw ard of deferred tax liabilities
Opening balance of deferred tax liabilities
Increase (decrease) in deferred tax liabilities
Acquisition in business combinations of deferred tax assets
Other increase (decrease) in deferred tax liabilities
Closing balance of deferred tax liabilities
06/30/2014
Th$
29,707,844
570,134
0
0
30,277,978
06/30/2014
Th$
44,933,646
180,693
259,022
0
45,373,361
12/31/2013
Th$
25,074,452
4,301,507
467,443
(135,558)
29,707,844
12/31/2013
Th$
36,860,327
6,530,639
1,560,934
(18,254)
44,933,646
68
19.4.- Results from income taxes are broken down as follows:
01/01/2014
06/30/2014
Th$
(Expense) incom e from incom e taxes, current and deferred
01/01/2013
06/30/2013
Th$
04/01/2014
06/30/2014
Th$
04/01/2013
06/30/2013
Th$
Current tax expense
Adjustments to current tax of prior periods
Other current tax expense
(1,969,685)
(415,950)
18,697
(1,088,202)
(6,320)
(505)
(1,605,172)
(415,950)
18,926
(159,596)
(6,720)
(633)
Tax expense, current, Net total
(2,366,938)
(1,095,027)
(2,002,196)
(166,949)
755,510
0
452,552
(21,348)
1,349,254
0
792,054
(21,348)
755,510
431,204
1,349,254
770,706
Deferred income (expense) from taxes related to the creation and reversal of temporary
differences
Other deferred tax expense
Tax expense deferred, Net total
Incom e tax Gain (Expense)
(1,611,428)
(663,823)
(652,942)
603,757
19.5.- The following chart shows the reconciliation of the tax calculation with the
statutory rate and with the effective rate:
Reconciliation of the Tax Expense using the Legal Rate
w ith Tax Expense using the Effective Rate
01/01/2014
06/30/2014
Th$
Tax expense using the legal rate
Tax effect of rates in other territories
Tax effect of non-taxable ordinary revenue
Tax effect of expenses not deducted for tax purposes
Tax effect of the fiscal benefit not recognized previously in income
Other
Other increase (decrease) in charges from statutory taxes
01/01/2013
06/30/2013
Th$
(1,856,042)
232,922
54,181
(29,953)
8,264
16,007
(36,807)
Total adjustm ents from taxes using the legal rate
244,614
Incom e tax expense using the effective rate
(1,611,428)
04/01/2014
06/30/2014
Th$
04/01/2013
06/30/2013
Th$
(963,885)
87,208
(40,068)
268,346
8,264
23,772
(36,579)
214,431
(10,546)
330,639
23,664
0
22,500
23,069
600,977
310,943
389,326
(663,823)
(652,942)
(1,264,800)
32,405
578,394
0
0
(9,317)
(505)
603,757
NOTE 20.- TRADE ACCOUNTS PAYABLE AND OTHER PAYABLES
06/30/2014
Area
Current
Th$
12/31/2013
NonTh$
Current
Th$
NonTh$
Notes payable
Medical services reimbursements payable
Subsidies payable
Excess in current account
Payments in excess of social savings
Doctor participations
Professional fees
Physician fees
Withholdings
Dvidendos por pagar
Suppliers
Expired checks
Management agreements
Erroneous social savings payment
Sundry provisions
Reimbursements
Other accounts payable
3,732,541
13,158,729
15,550,471
13,615,550
2,473,230
3,635,982
237,158
5,138,731
2,743,145
7,473,830
6,656,389
10,275,449
357,467
532,645
8,790,785
146,274
2,779,876
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4,214
3,723,697
14,711,675
13,817,890
12,128,301
2,122,222
2,513,735
151,807
4,398,491
2,248,422
9,041,558
4,206,762
10,440,160
162,557
494,442
6,041,843
194,440
1,855,415
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4,214
Total
97,298,252
4,214
88,253,417
4,214
69
NOTE 21.- PROVISIONS
06/30/2014
Classes of Provisions
Current
Th$
12/31/2013
Non-current
Th$
Current
Th$
Non-current
Th$
Health expenses provision
Subsidy expenses provision
Ongoing risk reserves provision
Claims reserves provision
Other provisions
22,997,454
1,836,742
745,909
298,484
37,584
0
0
0
0
0
21,488,010
1,750,179
130,670
39,201
39,469
0
0
0
0
0
Total
25,916,173
0
23,447,529
0
21.2.- Following is the roll-forward of provision balances:
Health care
expenses
provision
Th$
Additional provisions
Increase (decrease) in existing provisions
Consumed provision
Reversal of unused provision
Health
subsidies
expense
provision
Th$
Ongoing
risk
reserves
provision
Th$
Claim s
reserves
provision
Other
Provisions
Total
Th$
Th$
Th$
21,488,010
0
67,475,197
(65,965,753)
0
0
1,750,179
0
15,001,237
(14,914,674)
0
0
130,670
624,981
(9,742)
0
0
0
39,201
268,361
(9,078)
0
0
0
39,468
16,845
84,912
(84,828)
(16,845)
(1,969)
23,447,528
910,187
82,542,526
(80,965,255)
(16,845)
(1,969)
22,997,454
1,836,742
745,909
298,484
37,583
25,916,172
Health care
expenses
provision
Th$
Health
subsidies
expense
provision
Th$
Ongoing
risk
reserves
provision
Th$
Claim s
reserves
provision
Other
Provisions
Total
Th$
Th$
Th$
Additional provisions
Increase (decrease) in existing provisions
Consumed provision
Reversal of unused provision
24,032,906
0
(1,722,565)
0
0
(822,331)
1,791,322
0
(41,143)
0
0
0
0
124,222
6,448
0
0
0
0
37,267
1,934
0
0
0
67,296
0
37,383
(43,675)
(3,981)
(17,555)
25,891,524
161,489
(1,717,943)
(43,675)
(3,981)
(839,886)
21,488,010
1,750,179
130,670
39,201
39,468
23,447,528
NOTE 22.- NET EQUITY
22.1.- Subscribed and paid-in capital
As of June 30, 2014 the authorized, subscribed and paid in capital of the Company amounts to Th$
65,253,465, made of 637,650,000 shares.
22.2.- Shares
As of June 30, 2014, 642,000,000 shares represent the Shareholders’ capital, of which 637,650,000 are
subscribed and paid.

Stock options
On occasion of the capital increase of June 2011, the Company set apart a total of 4,350,000 shares for
executive compensation plans in a program of options on shares of Cruz Blanca Salud S.A. According to
the Company By-Laws, the subscription and undersigning period of these shares expires in June 2016.
As of this date there are no undersigning option contracts in force.
70
The Board of Directors allocated an undersigning options package in August 2011, whose accrual and
exercise period was accelerated due to the change in control over the Company that occurred in
February 2014, and none of the options was exercised. The Board has not adopted any initiatives to
renovate or reallocate said undersigning options.
22.3.- Dividends
At June 30, 2014, the dividends policy of the Company is to distribute at least a 30 per cent of the net
profits that the balance sheet reflects, among the shareholders, as a dividend in cash in proportion of
their share ownership percentage. However, in case of reaching an unanimous agreement (of all issued
shares) in the corresponding meeting, a smaller percentage may be distributed or it could be agreed to
not perform a dividends distribution. By agreement adopted by the absolute majority of the shares
present at a shareholders’ meeting, it can be agreed that the portion of the profits that is not destined to
dividends payable during the period, either as minimum or additional dividends, may be used in capital
increases previously agreed or that could be agreed in the future; or to the payment of dividends in
future accounting periods.
In the meeting of the Board of Directors held on March 19, 2012 it was decided that the policy regarding
the calculation of the distributable net profits would be the “gains (loss) attributable to the owners of the
controlling party” without any adjustments.
22.4.- Capital management
Capital management refers to the management of the Group’s Equity. The objectives of Cruz Blanca
Salud S.A., with regards to capital management are to safeguard the capabilities of equity to continue as
a going concern, in addition to seek a good return for the shareholders.
To accomplish these objectives, the Group permanently monitors the returns it achieves on each of its
businesses, maintaining its correct workings and maximizing in this manner the shareholders’
profitability.
Part of the process of following-up with each business consists in seeking that the decision making
regarding the financial investment instruments comply with a conservative profile, in addition to
positive market conditions. Financial instruments correspond to those set in the investments policy
defined for the company, which is permanently monitors by the Group’s Board. Within the activities
related to the capital management, Management periodically reviews the balance of cash and cash
equivalents, which is the basis for the investment decision-making.
22.5.- Other reserves
Other reserves forming part of the Company’s equity are the following:
Concept
06/30/2014
Th$
Other Reserves
Opening balance at January 01
Cash flow hedging reserve
Conversion difference reserve
Other reserves
Total other reserves
12/31/2013
Th$
12/31/2013
Th$
10,601,632
(1,296,244)
682,218
(19)
11,533,884
(1,014,342)
5,702
76,388
11,533,884
45,642
(99,616)
47,919
9,987,587
10,601,632
11,527,829
The main balances correspond to the following concepts:

Cash flow hedging reserves: the cash flow hedging reserve originates from the application of hedge
accounting with certain financial assets. This reserve is transferred to income of the period at the
maturity of the contracts or when the operation stops qualifying as hedge accounting, whichever
occurs first.
71

Reserves for exchange rates conversion changes: this reserve is generated by the conversion of the
financial statements of affiliates that have a functional currency other than the Chilean peso, and
therefore while applying IAS 21 the effect of said conversion from the functional currency of the
affiliate to the head company’s presentation currency, the effect is recognized in equity.

Other Reserves: This item is generated by the purchases of interest with shareholders that did not
trigger a change in control.
22.6.- Minority interest
Minority interest or non-controlling ownership in equity at the closing date of the financial statements is
as follows:
Nam e of affiliate
Minority
Minority
Minority
Minority
Minority
Minority
Minority
Interest in Promotora Salud S.A.
Interest in Desarrollo e Inversiones Médicas S.A.
Interest in Clínica Pukará S.A.
Interest in Isapre Cruz Blanca S.A.
Interest in Corporación Médica de Arica S.A.
Interest in Integramédica S.A
Interest in CBS Internacional S.A.
Type
Affiliate
Affiliate
Affiliate
Affiliate
Affiliate
Affiliate
Affiliate
Equity
Equity
Minority 06/30/2014
Interest %
Th$
Minority 12/31/2013
Interest %
Th$
46.850%
16.963%
14.567%
0.990%
31.030%
0.001%
30.130%
Totals
1,708,276
3,477,270
3,116,089
318,715
2,292,649
168,602
840,317
46.850%
16.963%
14.567%
0.990%
31.030%
0.001%
30.355%
11,921,918
1,746,918
3,500,120
2,890,468
275,594
2,361,572
170,632
793,488
11,738,792
Minority interest or non-controlling ownership in income at the closing date of the financial statements
is as follows:
Nam e of the subsidiary
Minority
Minority
Minority
Minority
Minority
Minority
Minority
Interest Promotora Salud S.A.
Interest Desarrollo e Inversiones Médicas S.A.
Interest Clínica Pukará S.A.
Interest Isapre Cruz Blanca S.A.
Interest Corporación Médica de Arica S.A.
Interest Integramédica S.A
Interest CBS Internacional S.A.
TOTALS
Type
Affiliates
Affiliates
Affiliates
Affiliates
Affiliates
Affiliates
Affiliates
Incom e
Incom e
06/30/2014
12/31/2013
Minority 06/30/2014
Interest %
Th$
Minority 3/31/2012
Interest %
Th$
46.850%
16.963%
14.567%
0.990%
31.030%
0.001%
30.130%
(38,642)
(9,716)
262,742
93,916
(67,818)
10,522
23,333
274,337
46.850%
16.963%
15.550%
0.990%
31.030%
0.001%
30.100%
(14,673)
49,101
164,304
66,571
74,542
7,123
14476
361,444
72
NOTE 23.- ORDINARY INCOME
23.1.- The following is a breakdown of ordinary income:
Ordinary Incom e
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
Revenue from Health contributions (Insurer segment)
Revenue from Insurance Premiums (Insurer segment)
Revenue from Hospital Services Provided
Revenue from Outpatient Health Services Provided
Revenue from international segment (outpatients)
Revenues from other segments
Consolidation adjustments
209,488,020
1,934,518
30,148,975
63,821,671
3,433,460
3,646,434
(24,212,039)
184,195,233
0
27,693,858
57,595,542
1,121,187
3,733,308
(17,294,657)
106,671,344
1,250,006
15,726,232
33,813,528
1,769,643
1,860,362
(13,390,434)
Total
288,261,039
257,044,471
147,700,681
92,683,252
0
14,270,965
31,053,657
554,807
1,775,258
(9,029,543)
131,308,396
NOTE 24.- CONTENTS OF SIGNIFICANT INCOME ACCOUNTS
Following is the breakdown of the main costs of sales and management expenses:
Costs by Nature
Health expense
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014
06/30/2013
06/30/2014
12/31/2013
Th$
Th$
Th$
Th$
(140,492,490)
(132,085,958)
(70,493,916)
(70,602,152)
Subsidy expenses
(34,321,865)
(30,256,523)
(18,385,763)
(16,596,580)
Expenses of clinical personnel
(14,388,636)
(13,677,480)
(7,033,133)
(6,333,912)
Medical fees
(28,634,075)
(25,371,943)
(15,399,462)
(14,376,836)
Equipment maintenance cost
(2,011,956)
(1,491,343)
(1,076,967)
(814,237)
External service costs
(4,639,899)
(5,609,028)
(2,266,262)
(3,463,890)
Clinical supplies cost
(8,153,041)
(6,154,145)
(4,350,415)
(4,134,598)
Depreciation and amortization
(4,818,609)
(3,949,213)
(2,696,762)
(2,024,514)
(57,581)
(916,681)
(34,038)
(695,628)
Drug costs
(723,289)
(913,309)
(353,559)
(402,522)
Other exploitation costs
(973,852)
(1,173,898)
(619,444)
(949,607)
Other consumption costs
(230,881)
(180,562)
(96,261)
(15,955)
(2,554,534)
(3,290,756)
(912,099)
(462,860)
Leases
Other services costs
Insurance technical reserves
(874,521)
0
(664,764)
-
Claims costs
(739,185)
0
(430,655)
-
Reinsurance broker commission
(208,670)
0
(208,670)
-
Other
(851,021)
(460,523)
348,953
Consolidation adjustment due to to inter segment costs
Total cost of sales
Management personnel expense
(268,396)
20,808,987
16,406,471
10,974,805
9,069,992
(223,865,118)
(208,932,764)
(114,507,888)
(111,454,346)
(26,778,512)
(20,397,344)
(13,409,382)
(11,636,111)
Overheads
(5,676,652)
(4,343,515)
(3,143,433)
(2,835,614)
External services
(3,247,912)
(4,435,334)
(1,947,437)
(2,702,228)
Management leases
(6,555,289)
(2,372,161)
(3,418,763)
(172,663)
Other services costs
(8,090,730)
(7,249,296)
(3,954,221)
(1,900,693)
(1,921,328)
(1,673,554)
(978,288)
(758,337)
(896,010)
(2,128,455)
(257,768)
(1,582,715)
Other
Consolidation adjustment due to to inter segment costs
Total m anagem ent expenses
Total
2,857,289
2,552,393
1,504,717
1,280,411
(50,309,144)
(40,047,266)
(25,604,575)
(20,307,950)
(274,174,262)
(248,980,030)
(140,112,463)
(131,762,296)
73
NOTE 25.- FINANCIAL INCOME (COSTS) AND OTHER
The composition of this account is the following:
Financial Incom e
01/01/2014
06/30/2014
Th$
01/01/2013
06/30/2013
Th$
04/01/2014
06/30/2014
Th$
04/01/2013
06/30/2013
Th$
Financial Incom e
Financial Interests
Other Financial Income
Total Financial Incom e
1,695,578
499,690
2,477,261
174,543
1,063,585
263,869
1,424,227
85,962
2,195,268
2,651,804
1,327,454
1,510,189
Bank loans expenses
Bonds expense
Financial lease expenses
Bank expenses
Card commission expenses
Other expenses
(2,968,293)
(771,037)
(609,785)
(129,248)
(45,427)
(88,670)
(2,501,348)
(748,875)
(652,037)
(205,207)
(14,279)
(105,634)
(1,509,148)
(390,838)
(319,437)
(36,978)
(28,269)
(26,543)
(1,419,719)
(379,652)
(328,568)
(7,748)
(1,292)
(1,365)
Total Financial Expense
(4,612,460)
(4,227,380)
(2,311,213)
(2,138,344)
(34,428)
(7,656)
(40,683)
4,055
(934,789)
5,783
(792,576)
(22,952)
(3,386,409)
(1,577,449)
(1,817,018)
(647,052)
Financial expense
Exchange rate difference
Results from changes in restatem ent units
Total financial incom e
NOTE 26.- OTHER INCOME (LOSS)
The composition of this account is the following:
Breakdow n of Other Incom e and Expense, By Function
Termination payments related to restructuring
01/01/2014
01/01/2013
04/01/2013
04/01/2012
06/30/2014
06/30/2013
06/30/2014
06/30/2013
Th$
Th$
Th$
Th$
(1,132,802)
(110,095)
(1,132,802)
Interests
0
0
1,388
22
Write offs
0
(3,428)
5,756
6,889
(276,246)
(49,468)
173,881
131,983
(1,409,048)
(162,991)
(951,777)
28,799
Other income (loss)
Total other expense by function
(110,095)
74
NOTE 27.- EARNINGS PER SHARE
Earnings per share are the following:
Basic earnings per share
01/01/2014
06/30/2014
Th$
01/01/2013
06/30/2013
Th$
04/01/2013
06/30/2014
Th$
04/01/2012
06/30/2013
Th$
Earnings attributable to the controlling party
7,394,444
5,298,734
3,992,536
-
595,332
Earnings available to com m on shareholders, basic
7,394,444
5,298,734
3,992,536
-
595,332
637,650,000
637,650,000
637,650,000
Weighted average of shares, basic
Basic Earnings (Losses) per shares in Chilean pesos ($)
Dilluted earnings per share
Earnings attributable to the controlling party
Weighted average of shares, basic
Weighted average of shares, dilluted
Dilluted Earnings (Losses) per shares in Chilean pesos ($)
11.60
01/01/2014
06/30/2014
Th$
7,394,444
637,650,000
637,650,000
11.60
8.31
01/01/2013
06/30/2013
Th$
5,298,734
637,650,000
637,650,000
8.31
637,650,000
6.26
(0.93)
04/01/2013
06/30/2014
Th$
3,992,536
637,650,000
637,650,000
6.26
04/01/2012
06/30/2013
Th$
-
595,332
637,650,000
637,650,000
(0.93)
NOTE 28.- SEGMENT REPORTING
Cruz Blanca Salud S.A. and the affiliate companies that make up the Group are companies of the health
care industry and develop its operations only in the national market.
The operating segments are reported in a fashion consistent with the presentation of internal reports
that management uses in the decision-making and controls processes. Cruz Blanca Salud S.A. bases its
designation of the segments based on the differentiation of services and on the financial information
available to the decision makers, with regards to matters such as profitability measurement and
investment allocation.
Management has determined the operating segments on the basis of the five big business areas where it
participates:

Insurance Area:
The Insurer area is essentially Isapre Cruz Blanca, which is present in the health care market since 1981,
date when the Private Health System was initiated in Chile. According to data at December 2012 of the
Superintendence of Health, Isapre Cruz Blanca S.A. is the biggest open Isapre in terms of market share
measured in total revenues of 2012 (21.8%) and the second in number of beneficiaries (21.0%). As of
October 2013, Compañía Cruz Blanca Seguros de Vida S.A. has joined this segment in a pre-operational
stage. As of the period's end it has been operating for a couple of months.

Hospital health care Area:
The hospital health care area is made of Clínica Reñaca, Clínica Antofagasta and Clínica San José. These
three hospitals total, over 366 beds, with 79 critical beds, which represents a significant regional
contribution considering that in the country there are only 18 hospitals that have over 100 beds.
Clínica Reñaca: present in the region of Valparaíso since 1982, it has become in a highly complex
Hospital after the investments made during the last 10 years, that include the incorporation of state-ofthe-art technology and improvements in the intensive care and intensive treatment pavilions. Today it
has 15,655 square meters and 164 beds, 36 of which are critical beds.
Clínica San José: available to users of the region of Arica and Parinacota since 1991. It is a referent for
medium and high complexity interventions in the region, thanks to a development plan on equipment
75
and installations implemented since 2007. Currently it counts with 7,506 square meters built and 52
beds, six of which are critical.
Clínica Antofagasta: Since 1980 it has been present in the region of Antofagasta. It is currently the main
high complexity Hospital in the North of the country, and equipped with the best technology. It has over
13,753 square meters built with 151 beds, 37 of which are critical beds.
The company Clinical Service of the Metropolitan Region of Santiago has been added as part of the
Hospital healthcare segment.

Outpatients health care area:
The outpatients health care area is made of the Integramédica Network, which includes a total of 27
consolidated centers of Integramédica (20), Sonorad (7) and Pilar Gazmuri (1). With this structure, the
Integramedica Network is the main private outpatients health care provider in the Country, offering
approximately 1,990 examination rooms in average, where over 1,300 health care professionals work.
Among the services offered are all medical specialties, dentistry, imaging (sound imaging, scanner, MRI,
among others), as well as support services such as digestive endoscopy, dermatologic, trauma and
otolaryngology specialists.8

International Area:
The international area is made of the following companies:
Resomasa, is a company established in 1992 and that focuses on rendering diagnosis services based in
magnetic resonance imaging and scanner in Peru. Its commercial model is based on two pillars: the
installation of resonators in the main hospitals of the Peruvian capital and sales through its sales team.
Resomasa operates three resonators and a multi-slice CT-scanner, with high-resolution equipment
compared to the Peruvian market’s standards. As for its market share, the company holds 15% of the
total of the resonators in Lima and it is estimated that between 15% to 20% of the resonation services
rendered.
Integramédica Perú SAC, a company established on July 31, 2012, is currently in a pre-operational stage.
It has the purpose of becoming the main outpatient health care provider in Peru. To this effect, it plans
to open new diagnosis centers in the country. Each diagnosis center will have adequate capabilities to
service the areas of general physicians, pediatric, traumatology, imaginery and procedures.
Anglolab is a Peruvian health company founded in 1994 with operations in Lima and other Peruvian
provinces. This company focuses in rendering clinical laboratory analyses. Currently the company
operates in thirteen locations which are able to carry a wide variety of tests. Its commercial model is
based in the signing of agreements to operate laboratories in the premises of hospitals and private
health institutions.

Other
The results from other areas in addition to those mentioned above, related to Cruz Blanca Salud and
other non-transferred to the operating segments, is presented under the Others concept, and do not
represent significant amounts on an individual basis to be designated as an operating segment.
76
28.1.- ASSETS AND LIABILITIES BY SEGMENT
Insurer
06/30/2014
12/31/2013
Th$
Th$
Hospital Healthcare
06/30/2014
12/31/2013
Th$
Th$
Outpatients Healthcare
06/30/2014
12/31/2013
Th$
Th$
International
06/30/2014
12/31/2013
Th$
Th$
Other
06/30/2014
12/31/2013
Th$
Th$
Consolidation Adjustm ents
06/30/2014
12/31/2013
Th$
Th$
TOTALS
06/30/2014
12/31/2013
Th$
Th$
CURRENT ASSETS
19,558,645
8,846,356
997,349
618,494
45,387
956,241
1,510,732
1,891,781
5,098,789
7,201,165
0
0
27,210,902
19,514,037
4,493,232
234,018
0
0
1,041,428
1,018,581
0
14,716
6,080,353
24,807,060
0
0
11,615,013
26,074,375
7,145,969
6,535,078
350,553
170,666
948,797
890,384
143,812
22,516
28,084
24,393
0
0
8,617,215
7,643,037
11,792,023
12,357,248
28,169,542
25,026,785
8,480,181
7,304,912
2,237,397
2,109,213
121,693
55,294
0
0
50,800,836
46,853,452
Accounts receivable from related parties, current
24,472,986
29,627,253
1,305,349
1,785,891
1,767,163
1,675,745
0
0
12,570,396
7,453,028
0
0
1,458,261
1,655,134
646,514
622,612
158,711
129,349
0
0
Inventory
Tax assets, current
Total Assets, Current
98,335
67,561,190
2,753,684
1,380,003
1,356,173
2,130,282
2,380,254
60,353,637
33,661,057
30,613,143
15,059,752
14,848,729
46,203
4,096,855
526,972
1,177,186
4,694,547
25,076,501
40,406,844
865,904
(39,749,334)
0
0
(39,749,334)
(40,055,924)
0
0
(40,055,924)
366,560
485,993
2,263,486
2,407,095
4,832,009
7,882,987
105,706,021 110,860,976
NON-CURRENT ASSETS
29,433,664
22,185,776
0
0
0
0
0
0
1,692,825
1,775,317
0
0
31,126,489
23,961,093
37,340,573
35,240,845
63,459
432,362
866,475
1,195,850
0
0
5,491
0
0
0
38,275,998
36,869,057
1,539,966
1,531,461
1,686
0
0
0
0
0
1,004,197
1,004,198
(2,545,849)
(2,535,659)
0
0
0
0
5,348,940
5,235,260
0
0
0
0
208,364,099 199,649,639
(213,412,744)
(204,593,530)
300,295
291,369
2,231,047
2,620,572
6,550,371
6,260,671
43,705,182
42,864,624
3,639,023
2,452,809
47,697,129
47,537,591
1,207,229
1,207,229
0
0
1,550,625
1,550,625
63,456,645
63,456,645
2,948,481
2,761,355
14,422,413
14,422,413
1,342,299
1,342,299
8,053,752
8,262,864
61,756,504
59,899,498
35,473,180
33,838,184
9,331,155
8,839,558
6,043,848
6,073,189
0
0
Accounts receivable from related entities, non-current
Investments accounted w ith the equity method
Goodw ill
105,029,981 102,943,496
83,720,463
83,533,337
120,658,439 116,913,293
Investment property
0
0
436,403
439,910
0
0
0
0
1,311,941
1,328,502
0
0
1,748,344
1,768,412
Deferred tax assets
288,713
126,718
745,197
622,786
2,757,836
3,009,033
1,051,656
729,198
521,168
434,586
0
0
5,364,570
4,922,321
Total assets, non-current
TOTAL ASSETS
78,887,715
69,968,236
146,448,905 130,321,873
76,453,185
74,441,112
146,259,318 144,364,336
16,970,315
14,782,920
281,063,111 272,225,435
(213,409,065)
(204,579,661)
386,224,579 371,202,378
110,114,242 105,054,255
161,319,070 159,213,065
21,067,170
19,477,467
306,139,612 312,632,279
(253,158,399)
(244,635,585)
491,930,600 482,063,354
77
28.1.- ASSETS AND LIABILITIES BY SEGMENT (CONTINUED)
Insurer
Hospital Healthcare
International
Other
Consolidation Adjustm ents
TOTALS
06/30/2014
12/31/2013
06/30/2014
12/31/2013
06/30/2014
12/31/2013
06/30/2014
12/31/2013
06/30/2014
12/31/2013
06/30/2014
12/31/2013
06/30/2014
12/31/2013
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
CURRENT LIABILITIES
0
0
8,226,047
8,531,470
9,416,811
8,459,828
171,456
184,134
6,532,012
6,982,754
0
Trade creditors and other accounts payable
70,608,241
65,225,714
10,231,246
8,680,842
12,647,188
10,922,550
2,332,562
2,062,403
1,366,967
1,858,470
112,048
Accounts payable to related entities, current
5,100,138
3,452,781
4,315,574
2,785,420
3,792,454
3,643,982
2,084,312
0
24,103,757
29,311,894
25,916,173
23,445,560
0
0
0
0
0
0
0
1,969
0
0
Other short-term provisions
Tax liabilities, current
Provisions for employee benefits, Current
Total liabilities, current
(39,396,235)
24,346,326
24,158,186
(496,561)
0
97,298,252
88,253,418
(39,194,077)
0
0
25,916,173
23,447,529
635,140
0
0
28,960
340,601
139,612
82,995
55,605
108,389
14,227
103,155
0
0
238,404
1,010,968
164,235
180,778
274,923
125,016
156,809
51,395
20,629
378,035
239,711
0
0
1,746,192
856,307
855,333
576,128
116,555
50,860
16,861
12,371
101,405
4,173
2,221,048
3,100,808
0
0
3,311,202
3,744,340
103,490,853
92,864,418
23,099,160
20,664,116
26,137,942
23,278,535
4,796,735
2,379,728
34,616,046
41,598,761
(39,284,187)
(39,690,638)
152,856,549 141,094,920
NON-CURRENT LIABILITIES
Accounts payable to related entities, non-current
Deferred tax liability
Total liabilities, non-current
Total Liabilities
0
0
21,046,530
20,847,060
24,722,609
27,131,106
517,929
593,598
75,035,671
78,100,850
0
0
4,214
4,214
0
0
0
0
0
0
0
0
0
0
0
0
190,862
0
0
0
0
0
2,714,632
2,800,921
7,868,126
7,333,167
1,351,959
1,537,546
834,008
892,152
1,433,453
1,484,150
8,650,416
8,579,712
(2,905,494)
321,396
0
(2,800,921)
321,396
0
121,322,739 126,672,614
4,214
4,214
0
0
20,459,358
20,148,123
1,234,778
1,789,364
0
0
0
0
459,000
609,000
775,778
1,180,364
0
0
7,872,340
7,337,381
22,589,351
22,384,606
26,015,617
28,632,258
2,727,160
3,258,112
86,400,719
89,481,483
(2,584,098)
(2,479,525)
143,021,089 148,614,315
111,363,193 100,201,799
45,688,511
43,048,722
52,153,559
51,910,793
7,523,895
5,637,840
121,016,765 131,080,244
(41,868,285)
(42,170,163)
295,877,638 289,709,235
(174,103,513)
(171,253,513)
EQUITY
22,487,221
21,337,221
48,726,327
47,026,327
88,930,016
88,930,016
13,957,949
13,957,949
65,255,465
65,255,465
Premium on issue of shares
0
0
0
0
0
0
0
0
51,378,174
51,378,174
Other reserves
0
0
5,186
60,890
289,608
(384,537)
9,843,987
10,460,205
(125,580)
12,598,291
8,782,853
14,516,122
13,892,242
20,061,707
18,140,734
(527,274)
58,633,890
54,446,985
(46,753,792)
(41,353,484)
35,085,512
0
30,120,074
0
63,216,835
1,208,896
60,892,955
1,112,578
108,996,909 107,131,640
168,602
170,632
12,702,957
840,318
13,046,138
793,489
185,111,516 181,540,829
11,331
11,206
(220,982,885)
9,692,771
(212,116,309)
9,650,887
184,130,844 180,615,327
11,921,918
11,738,792
EQUITY
35,085,512
30,120,074
64,425,731
62,005,533
109,165,511 107,302,272
13,543,275
13,839,627
185,122,847 181,552,035
(211,290,114)
(202,465,422)
196,052,762 192,354,119
TOTAL EQUITY AND LIABILITIES
146,448,705 130,321,873
(253,158,399)
(244,635,585)
Issued capital
Accumulated earnings (loss)
Equity attributable to ow ners of the controlling party
(25,614)
(25,614)
110,114,242 105,054,255
161,319,070 159,213,065
(1,544,600)
21,067,170
19,477,467
306,139,612 312,632,279
0
65,253,465
65,253,465
0
51,378,174
51,378,174
490,688
9,987,587
10,601,632
57,511,618
53,382,056
491,930,400 482,063,354
78
28.2.- STATEMENT OF INCOME BY SEGMENT
Insurer (2)
STATEMENT OF INCOME BY FUNCTION
Hospital Healthcare
01/01/2014
01/01/2013
04/01/2014
04/01/2013
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
Earnings (loss)
Revenues from ordinary activities
Costs of sales
Gross Earnings
Management expenses
Other expenses, by function
211,422,538 184,752,516 107,549,890 92,954,018
(177,330,472) (162,204,723) (90,556,666) (86,818,547)
34,092,066
(25,527,977)
(752,405)
7,811,684
Interest income
Financial
Interest incost
gain (loss) of affiliates and joint
businesses accounted for using the equity
method
Foreign exchange difference
Results from restatement units
0
2,101,578
(126,752)
Earnings (loss), before taxes
Income tax expense
22,547,793
16,993,224
(21,882,815) (12,687,263) (10,554,816)
(750,109)
(752,405)
(750,109)
(85,131)
4,014
1,885,658
(230,268)
3,553,556
(5,169,454)
1,388
1,252,978
(47,289)
82,736
1,032,526
(114,894)
0
0
1,244,270
0
0
42,800
0
0
542,174
11,030,780
1,617,073
5,302,807
(2,083,273)
6,135,471
(311,894)
(981,413)
0
0
2,084
(4,167,002)
833,902
30,148,974 28,598,228 15,724,409 14,804,707
(23,302,881) (21,373,035) (11,772,129) (11,436,036)
6,846,093
7,225,193
3,952,280
3,368,671
(4,007,669)
(14,575)
(3,908,888)
(868,188)
(2,091,519)
(14,575)
(1,340,066)
(868,188)
2,823,849
2,448,117
1,846,186
1,160,417
(311,802)
6,493
(852,648)
(113,724)
84,069
(856,601)
(201,049)
(183)
(403,217)
(946)
72,852
(493,626)
344,636
(287)
(644,437)
33,851
(31,817)
(27,990)
206,917
(2,104)
(375,367)
(207,279)
(31,453)
(11,612)
1,365,804
(95,162)
1,535,905
(229,115)
1,071,183
488,353
(100,107)
(125,449)
Earnings (loss) from continuing operations
8,947,507
1,305,179
4,321,394
(3,333,100)
1,270,642
1,306,790
971,076
362,904
Earnings (loss)
8,947,507
1,305,179
4,321,394
(3,333,100)
1,270,642
1,306,790
971,076
362,904
Fees from Surplus current account and fees (1)
1,367,483
0
1,270,969
0
698,850
0
1,745,691
0
1,710,916
0
888,279
0
761,304
0
EBITDA
EBIT
9,179,167
7,931,718
1,185,838
(85,131)
4,569,540
2,509,068
4,159,033
2,448,117
2,734,465
1,846,186
1,921,721
1,160,417
4,252,406
3,553,556
639,013
0
(4,530,441)
(5,169,454)
79
28.2.- STATEMENT OF INCOME BY SEGMENT (Continued)
Other
01/01/2014
01/01/2013
04/01/2014
04/01/2013
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
Earnings (loss)
Costs of sales
Gross Earnings
Management expenses
63,821,671 57,686,211 33,807,179 31,434,046
(39,129,563) (38,470,678) (20,537,787) (20,825,840)
24,692,108
19,215,533
(19,476,806) (12,690,569)
0
(331)
5,215,302
6,524,633
Interest income
Financial
Interest incost
method
(921,485)
23,400
(1,247,689)
(13,350)
28,426
(1,351,022)
Income tax expense
0
0
4,326
3,073,854
(319,094)
0
0
(34,343)
5,154,344
(437,280)
13,269,392
10,608,206
(9,980,348)
0
(6,487,819)
(331)
3,289,044
4,120,056
(576,792)
12,040
(641,327)
0
0
4,321
2,087,286
(102,605)
(13,310)
18,915
(917,451)
0
603
(33,389)
3,175,424
(220,618)
3,646,435 3,788,424 1,832,116 1,820,841
(2,403,943) (2,624,554) (1,205,906) (1,083,942)
1,242,492
1,163,870
626,210
(1,859,713) (1,263,959) (1,111,302)
0
0
0
(617,221)
(100,089)
(485,092)
736,899
(678,054)
0
58,845
0
7,114
437
7,364
506,881 1,155,391
284,017
616,523
(2,799,992) (2,753,198) (1,429,634) (1,329,045)
11,417,417
(29,557)
(1,541,977)
7,058,142
17,606
25,316
6,444,736
(29,470)
(963,704)
99,629
16,903
19,965
6,935,551
5,410,282
3,821,290
(509,816)
516,367
249,958
233,653
103,345
2,754,760
4,717,064
1,984,681
2,954,806
7,451,918
5,660,240
4,054,943
(406,471)
Earnings (loss)
2,754,760
4,717,064
1,984,681
2,954,806
7,451,918
5,660,240
4,054,943
(406,471)
3,073,989
0
2,380,126
0
1,786,597
0
1,252,383
0
145,417
0
138,877
0
73,233
0
69,137
0
EBITDA
EBIT
8,289,291
4,284,361
8,904,759
6,524,633
5,075,641
3,289,044
5,372,439
4,120,056
(471,804)
(582,911)
38,788
(100,089)
(411,859)
(485,092)
127,982
58,845
80
28.2.- STATEMENT OF INCOME BY SEGMENT (Continued)
International Area
Adjustm ents
Accum ulated
01/01/2014 01/01/2013 04/01/2014 04/01/2013
01/01/2014
01/01/2013
04/01/2014
04/01/2013
01/01/2014
01/01/2013
04/01/2014
04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
06/30/2014
Th$
06/30/2013
Th$
3,433,459 1,122,837 1,757,610
(2,518,357) (666,245) (1,410,205)
(24,212,038) (18,903,745) (12,970,523) (10,260,854)
20,808,987 16,406,471 10,974,805
9,036,501
Earnings (loss)
Costs of sales
Gross Earnings
915,102
Management expenses
456,592
347,405
566,380
(339,763)
288,261,039 257,044,471 147,700,681 131,319,138
(223,876,229) (208,932,764) (114,507,888) (111,467,627)
226,617
(3,403,051)
(2,497,274)
(1,995,718)
(1,224,353)
64,384,810
48,111,707
33,192,793
19,851,511
(846,183)
1,618,628
(50,309,144)
0
(40,047,266)
0
(25,604,575)
0
(20,233,699)
0
14,075,666
8,064,441
7,588,218
(1,409,048)
2,195,268
(4,612,460)
0
(162,991)
2,651,804
(4,227,380)
0
(951,777)
1,327,454
(2,311,213)
0
28,799
1,510,133
(2,149,453)
0
(34,428)
(934,789)
(7,656)
5,783
(40,683)
(792,576)
(25,394)
(22,952)
(2,200,078)
(45,704)
(727,773) (1,089,909)
0
(45,704)
(326,761)
0
2,763,099
812,684
426,738
1,618,628
1,355,766
812,684
(1,330,680)
(271,181)
(788,208)
(100,144)
172,732
0
172,732
0
1,124
(29,587)
0
220
(37,207)
0
695
(11,839)
0
82
(24,158)
(175,761)
(444,208)
444,208
(47,045)
(501,960)
1,000,916
(175,761)
(222,093)
222,093
0
(4,584)
0
0
6,555
0
0
(9,109)
0
0
(11,447)
0
(11,762,053)
0
3,029
(7,091,993)
0
0
(6,651,653)
0
0
107,650
0
0
(301,613)
(808,461)
(135,667)
(11,762,053)
(6,640,082)
(6,654,682)
559,561
369,734
64,508
297,530
51,931
(993,993)
(237,105)
(510,931)
(83,736)
(11,762,053)
(6,640,082)
(6,654,682)
559,561
7,668,781
5,660,178
4,166,481
(397,944)
Earnings (loss)
(993,993)
(237,105)
(510,931)
(83,736)
(11,762,053)
(6,640,082)
(6,654,682)
559,561
7,668,781
5,660,178
4,166,481
(397,944)
407,357
0
121,879
0
228,091
0
60,865
0
(149,302)
(271,181)
(560,117)
(788,208)
(39,279)
(39,279)
Interest income
Financialincost
Interest
method
(1,363,727)
Income tax expense
EBITDA
EBIT
(923,323)
(1,299,855)
0
0
0
(47,045)
(230,765)
729,721
0
9,280,209
0
6,324,001
(1,611,428)
4,819,423
(663,823)
(652,942)
(382,188)
(1,041,055)
643,111
0
0
0
0
0
0
0
0
6,739,937
0
5,622,767
0
3,675,050
0
2,782,702
0
172,732
0
0
172,732
172,732
0
0
20,815,603
12,842,381
13,687,208
8,516,349
11,263,268
7,588,218
2,328,951
(1,992)
(1): EBITDA for the Insurer area considers, in addition to depreciation and amortization, the following accounts included under "Other Income, by Function:" Surplus Current Account Fee, and
Management Fee.
(2): Since June 2013, the Insurer Area includes the balances of Cruz Blanca Compañía de Seguros de Vida S.A.
(3): Revenues from ordinary activities between related entities that are eliminated in the consolidation adjustments column - which are later redistributed among the different cost and expense
items - are the following:
Revenues from sales to related entities
Insurer (2)
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
851,391
0
439,222
0
Hospital Healthcare
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
8,763,322
6,617,899
4,613,907
3,644,210
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
Other
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
11,865,853
2,731,472
9,788,572
6,538,494
5,364,777
2,497,274
1,378,900
1,251,867
Consolidation Adjustments
01/01/2014 01/01/2013 04/01/2014 04/01/2013
06/30/2014 06/30/2013 06/30/2014 06/30/2013
Th$
Th$
Th$
Th$
0
0
0
0
01/01/2014
06/30/2014
Th$
Accumulated
01/01/2013 04/01/2014
06/30/2013 06/30/2014
Th$
Th$
04/01/2013
06/30/2013
Th$
24,212,038
18,903,745
10,260,854
12,970,523
81
28.3 CASH FLOWS BY SEGMENT
Insurer (2)
STATEMENT OF CASH FLOWS, DIRECT METHOD
Hospital Healthcare
Other
International area
Consolidation adjustm ents
Accum ulated
01/01/14
01/01/13
01/01/14
01/01/13
01/01/14
01/01/13
01/01/14
01/01/13
01/01/14
01/01/13
01/01/14
01/01/13
01/01/14
01/01/13
06/30/14
06/30/13
06/30/14
06/30/13
06/30/14
06/30/13
06/30/14
06/30/13
06/30/14
06/30/13
06/30/14
06/30/13
06/30/14
06/30/13
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
Th$
223,352,513
0
0
0
223,352,513
197,905,000
0
0
0
197,905,000
33,977,420
18,069,953
2,653,307
2,978,478
10,275,682
32,976,076
12,858,123
2,903,707
1,079,063
16,135,183
64,125,031
23,474,630
10,182,702
2,636,677
27,831,022
69,144,064
19,267,116
6,802,876
16,460,376
26,613,696
4,924,457
318,159
0
0
4,606,298
330,156,598
41,862,742
12,836,009
5,615,155
269,842,692
304,701,721
32,339,844
9,706,583
17,539,439
245,115,855
1,753,635
0
0
0
0
0
20,335,225
14,131,680
0
0
0
0
Cash flow s proceeds from (used in) operating activities
Classes of collections from operating activities
Collection of sales of goods and rendering of services
Collections from the Isapre
Collections from Fonasa
Collections from Agreements
Other collections
Collections from premiums and benefits, annuities and other subscribed policy benefits
Other colllections from operating activities
4,676,581
214,605
0
0
4,461,976
3,777,177
0
0
0
3,777,177
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,753,635
0
0
84
0
0
0
0
20,335,225
14,131,764
Classes of paym ents
Payments to suppliers for the procurement of goods and services
Payments to and on behalf of employees - Salary Advances
Payments to and on behalf of employees - Social savings and services
Payments for premiums and benefits, annuities and other subscribed policy benefits
Other payments from operating activities
(187,821,090) (172,560,195)
(15,456,048) (15,268,634)
(10,964,526) (10,977,430)
(972,796)
(937,438)
(3,518,726)
(3,353,766)
(633,829)
0
(26,132,897)
(3,208,654)
(19,185,489) (20,404,861)
(9,581,755) (8,828,624)
(6,817,704) (6,296,062)
(504,741)
(506,530)
(2,259,310) (2,026,032)
0
0
(3,042,585) (2,188,618)
(43,570,352) (49,996,595)
(13,528,271) (9,357,256)
(10,369,110) (7,109,523)
(472,768)
(174,937)
(2,686,393) (2,072,796)
0
0
(2,377,751) (2,387,192)
(3,300,915)
(1,822,778)
(1,482,059)
(32,501)
(308,218)
0
(274,589)
(2,906,467)
(1,466,238)
(1,185,539)
(37,241)
(243,459)
0
(202,756)
(4,113,395)
5,203,361
0
0
0
927,013
927,013
153,290
4,410
0
14,466,689
0
0
0
955,517
955,517
599,729
(2,359)
1,700,854
16,120,780
(3,570,044)
(1,736,012)
(1,719,929)
0
(16,083)
0
(58,981)
(458,148)
0
0
0
0
0
(457)
0
0
0
0
0
0
(735,556)
0
0
0
0
0
0
(9,425,521)
(257,447,890) (246,326,266)
(42,124,864) (34,920,752)
(31,353,328) (25,568,554)
(1,982,806)
(1,656,146)
(8,788,730)
(7,696,053)
(633,829)
0
(32,622,359) (17,413,198)
Other operating collections and paym ents
Dividends paid
Dividends received
Interest paid
- Interests received from investments
- Interests received trade current account
Interest collected
Income tax returns (payments)
Net cash flow s from (used in) operating activities
(3,603,352)
0
(25,443)
(23,371)
(2,072)
0
0
1,342,858
0
0
0
0
0
0
0
0
(1,601,725)
(9,425,518)
0
0
0
0
0
0
0
(325,770)
(2,693)
0
79,481
0
0
0
0
0
(44,213)
0
0
0
0
0
0
0
0
(11,839)
0
0
0
0
0
0
0
0
(113,669)
0
0
0
0
0
0
0
0
0
0
13,111,572
9,971,954
1,839,128
1,589,241
4,636,818
7,289,352
3,603,352
(7,072,760)
(5,203,361) (14,546,170)
0
0
0
0
0
0
0
0
0
0
0
0
0
9,425,521
(4,113,395)
0
(25,443)
(23,371)
(2,072)
927,013
927,013
1,158,539
1,717
(7,072,760)
0
0
0
0
955,517
955,517
(1,159,878)
(2,356)
(458,605)
(2,335,565) (21,618,930)
17,364,947
12,893,792
0
0
(4,878,029)
(230,352)
(80,003)
8,339,855
(15,619,026)
(3,210,000)
10,214,212
0
1,163,344
772,561
390,783
0
0
0
0
(2,199,666)
(303,139)
(237,248)
0
(23,628,520)
0
5,184,148
0
713,720
713,720
0
0
10
0
0
0
(2,233,180)
0
0
0
0
0
162,092
7,945
7,945
0
0
(824)
0
(4,600,000)
(613,691)
(2,199,889)
(352,117)
0
0
0
0
535,462
62,237
6,237
0
0
0
0
0
545,000
(2,931,423)
0
0
0
0
29,959,196
0
0
0
0
553
0
0
0
(3,489,882)
(2,258,858)
0
(5,528)
(390)
0
24,168,922
0
5,578
5,578
0
0
0
0
0
0 (1,797,213)
0
0
(383,764)
0
(285,590)
0
0
0
0
0
0
0
0
0
0
0
703
0
703
0
0
0
0
0
0
0
0
1,851
1,281,693
6,569,012
11,030,783 13,963,761
0
0
0
0
0
0
0
0
0
0
(40,281,072) (38,642,618)
(162,092)
(535,462)
0
0
0
0
0
0
0
0
0
0
0
0
(5,814,826)
(366,101)
53,519,315
(41,839,334)
(3,210,000)
0
0
1,182,794
792,011
390,783
553
(824)
0
0
(5,011,970)
(591,604)
13,219,069
(40,794,994)
0
0
0
794,660
735,841
2,819
0
27,987
(4,299,999)
(20,470,695)
(2,063,967)
(7,167,998)
27,573,326
18,419,842
(668,651) (1,797,213)
(28,130,688) (18,643,456)
3,471,577
(32,356,852)
0
1,150,000
0
0
0
120,000
0
0
(170,000)
0
0
0
0
0
0
0
0
2,736,905
0
0
0
96,361
0
0
(89,784)
(11,453,477)
(699)
0
0
(699)
0
0
0
0
0
3,069,118
3,069,118
3,379,393
(4,010,042)
(367,946)
(42,647)
(610,665)
(813,468)
(703,011)
(78,396)
(32,061)
0
10
9,601,851
0
0
2,970,970
2,970,970
682,591
(1,332,136)
(414,078)
(186,903)
(1,361,691)
(513,277)
(429,366)
(72,131)
(11,780)
0
0
0
0
0
0
0 14,939,998
999,288
0
999,288 14,939,998
(1,125,630)
21,471
758,000
(676,244)
(2,986,447) (2,553,673)
(27,528,000) (31,214,734)
(1,279,770) (3,500,000)
(1,958,439)
(778,755)
(1,958,439)
(211,660)
0
(566,674)
0
(421)
0
0
0
0
0
171,799
0
0
0
0
0
0
0
4,644,514 10,138,079
(5,000,000) (5,014,453)
(213,459)
(205,247)
(11,145,015) (12,839,609)
0
(7,014,192)
(3,151,007) (2,917,784)
(1,479,471) (1,145,395)
(96,428)
(103,927)
0
(170,127)
(1,575,108) (1,498,335)
0
(5,440)
0
0
0
0
0
2,027,644
(38,753)
(77,126)
(1,059)
0
(31,451)
0
(18,131)
(13,320)
0
0
2,207,306
0
0
0
0
1,800,805
0
0
0
0
0
0
0
0
0
0
0 (11,980,956)
(1,150,000) (2,736,905)
0
0
0
0
0
0
(9,045,921) (12,694,164)
0
0
0
0
38,886,721 44,331,030
1,775,453 23,329,360
0
0
0
0
0
0
0
0
0
0
0
14,021
0
0
0
4,068,406
4,068,406
0
(8,290,795)
(3,644,978)
0
(114,982)
(5,954,365)
(4,140,921)
(192,955)
(45,381)
(1,575,108)
10
0
0
14,939,998
2,970,970
17,910,968
45,143
(7,022,833)
(3,172,998)
0
0
(4,210,515)
(1,786,421)
(742,732)
(183,027)
(1,498,335)
8,581
9,447,327
(33,120,998) (23,761,937)
(14,864,967) (17,686,847)
1,879,255
4,008,111
30,466,253
(1,587,860)
0
0
0
0
0
0
0
0
0
Cash flow s from (used in) investm ent activities
Cash flow s received from the loss of control on subsidiaries or other businesses
Cash flow s used to obtain control on subsidiaries or other businesses
Loans granted to related entities
Acquisition of property, plant and equipment
Acquisition of intangibles
Proceeds from other long-term assets
Acquisition of other long-term assets
Funding and update of Superintendence Guarantee (less)
Collection of amounts from related entities
Dividends received
Interests received
- Interests received trade current account
Income tax returns (payments)
Net cash flow s from (used in) investm ent activities
0
(1,851)
(1,281,693)
(171,799)
(6,697,754) (7,660,522)
(36,107)
(250,084)
(508)
(2,239)
45,179,460 13,224,597
(26,220,308) (17,166,084)
0
0
107,664
9,289,548
0
0
10,802
13,125
10,802
10,306
0
2,819
0
0
0
27,977
11,061,556
(2,697,332)
Cash flow s from (used in) financing activities
Proceeds from the issue of shares
Proceeds from the Issue of Other Equity Instruments (1)
Inflow s from long-term loans
Inflow s from short-term loans
Total inflow s from loans
Loans obtained from related entities
Payment of loans
Payment of liabilities from financial leases
Payment of loans to related entities
Dividends paid
Interests paid
- Interests paid - Loans
- Interests paid - Leases
- Interests paid - Trade current account
- Interests paid - Bond
Net cash flow s from (used in) financing activities
Net increase (decrease) of cash and cash equivalents, before the effect of changes in exchange rate
Effect of changes in the exchange rate on cash and cash equivalents
1,100,000
9,911,573
800,717
(8,710,694)
(19,209,435)
15,542
603,753
378,914
(58)
3,868,570
(128)
(910,854)
0
1,947,257
0
(2,102,557)
178
(4,263,399)
53
10,712,290
(19,193,893)
378,856
3,868,442
(910,854)
1,947,257
(2,102,379)
(4,263,346)
Cash and cash equivalents at beginning of period
8,846,356
26,396,912
618,494
1,917,708
956,241
1,005,399
7,201,165
16,045,543
Cash and cash equivalents at closing of period
19,558,646
7,203,019
997,350
5,786,150
45,387
2,952,656
5,098,786
11,782,197
Net Increase (decrease) of Cash and Cash Equivalents
(377,256)
(3,791)
1,752,293
40,262,386
0
(13,936,704)
6,899,820
3,558,346
(15,904,714)
0
0
797,046
1,749,703
0
0
7,696,866
(15,891,099)
1,891,781
309,680
0
0
19,514,037
45,356,947
1,510,734
2,059,383
0
0
27,210,903
29,465,848
(381,047)
(2,590)
0
13,615
82
NOTE 29.- CONTINGENCIES, LITIGATION AND OTHER
The Parent Company does not have contingencies nor faces legal proceedings. Its affiliates face litigation
or potential litigation, on court or off court proceedings within the normal course of its operations.
According to the estimates of the legal advisors of the Company, Management does not believe that any
of these proceedings may result in material gains or losses for any of the group's companies.
Following is a summary of the lawsuits or other legal proceedings.
a) Isapre Cruz Blanca S.A.
At June 30, 2014, the summary of the ongoing proceedings both Courts of Justice and in arbitration
processes arising from claims against Isapre Cruz Blanca S.A. by its beneficiaries is the following:
1.
Proceedings in courts of justice:
a. Ordinary trials: there is knowledge of 15 ongoing ordinary lawsuits by the beneficiaries
against the Isapre.
b. Protection recourse: There is knowledge of 15,121 protection recourses based on the
restatement of the base price as of June 30, 2014. In addition, as of that date there are
28 other recourses related to other topics, among which can be noted recourses for
health plan coverages, CAEC coverage, change of CAEC service provider, house hospital
care, undeclared preexistent illness, contract termination, medical leaves, and other
matters.
2. Proceedings in arbitration:
There is knowledge of 322 arbitration proceedings for claims against the Isapre by its
beneficiaries, in process as of June 30, 2014 in the arbitration court of the Intendence of Health Funds
and Insurances.
As of June 30, 2014, the Company holds outstanding lawsuits against it for claims related to the normal
course of business, which according to the legal advisors of the companies, do not present risks of
significant losses.
b) Integramédica S.A.
As of June 30, 2014, the Company holds outstanding lawsuits against it for claims related to the normal
course of business, which according to the legal advisors of the companies, do not present risks of
significant losses.
c) Promotora de Salud S.A.
As of June 30, 2014, this company does not have outstanding lawsuits. Its subsidiary Clinica Reñaca S.A.
at December 31, 2013, has outstanding lawsuits against it for claims related to the normal course of
business, which according to the legal counsel, do not present risks of significant losses.
d) Desarrollo e Inversiones Médicas S.A.
As of June 30, 2014, this company does not have outstanding lawsuits. Its subsidiary Clinica Reñaca S.A.
has outstanding lawsuits against it for claims related to the normal course of business, which according
to the legal counsel, do not present risks of significant losses.
e) Inversiones Clínicas Pukará S.A. and affiliate
As at June 30, 2014, there are outstanding lawsuits against the Company related to the normal course of
its business, which according to the legal advisors of the companies do not represent a risk of significant
losses.
83
f) Corporación Médica de Arica S.A. and affiliate
As at June 30, 2014, there are outstanding lawsuits against the Company related to the normal course of
its business, which according to the legal advisors of the companies do not represent a risk of significant
losses.
g) Inversiones CBS SpA
As of June 30, 2014 this company does not have outstanding legal proceedings or contingencies.
h) Cruz Blanca Salud Internacional S.A.
i)
j)
k) Cruz Blanca Compañía de Seguros de Vida S.A.
NOTE 30.- GUARANTEES PLEDGED TO THIRD PARTIES, OTHER CONTINGENT ASSETS
AND LIABILITIES AND OTHER COMMITMENTS
a) Cruz Blanca Salud S.A.
The Company has pledged the following guarantees with third parties:
In relation to the contract of guarantee and co-debt dated November 17, 2010 which was sighted by the
Public Notary of Santiago Mr. Eduardo Diez Morello the companies became a guarantor and co debtors
in favor of Corpbanca, Banco Security, Banco Bice and Banco del Estado de Chile, in relationship to all
the liabilities of Inversiones Médicas Cuatro S.A., Idelpa Salud Dos S.A. (both companies are nowadays
part of Cruz Blanca Salud S.A.) and Integramédica under the contract “Debt recognition, and
modification of credit contract” granted on that same date and sighted by the public notary Humberto
Santelices Narducci.
The Company has the following covenants related to the Bond Issuing Contract:
Prohibition to grant real guarantees. Cruz Blanca Salud S.A. will not grant nor will it allow that any of its
Relevant Subsidiaries grant real guarantees, meaning liens or mortgages, that guarantee new Bond
emissions or any other money financing operation, or other financing or existing obligations or that may
arise in the future, as long that the total accumulated amount of all the liabilities guaranteed by Cruz
Blanca Salud S.A. and/or its Relevant Subsidiaries, exceed 5% of the Total Assets of Cruz Blanca Salud
S.A.. Notwithstanding, for this purpose the following real guarantees will not be considered: a/ those
current at the date of the Bond Issue Contract; b/ those established to finance, refinance, pay or
amortize the acquisition, construction, development or improvement price or cost of assets of Cruz
Blanca Salud S.A. or of its subsidiaries, as long as the corresponding guarantee remains on the same
acquired, built, developed or improved asset, is established at the same time with the acquisition,
construction, development or improvement or within one year of the occurrence of any of these events,
and as long as the guaranteed obligation does not exceed the acquisition, construction, development or
improvement price or cost; c/ those that are granted by Cruz Blanca Salud S.A. in favor of its
Subsidiaries or from the subsidiaries to Cruz Blanca Salud S.A., with the purpose of covering liabilities
between them; d/ those granted by an entity that, subsequent to the date of grant of a guarantee,
merges, is absorbed into, or becomes a subsidiary of, Cruz Blanca Salud S.A.; e/ those that set liens on
84
assets acquired by Cruz Blanca Salud S.A. and that are established prior to its acquisition; f/ those
established by legal requirements or by legal mandate; g/ those that establish, replace or take the place
of any of the aforementioned guarantees; and h/ those established on the shares issued by the Relevant
Subsidiaries.
Notwithstanding, Cruz Blanca Salud S.A. or any of its Subsidiaries may always grant real guarantees to
other liabilities if, previously and simultaneously, they establish guarantees that are at least
proportionally equivalent in favor of the Bondholders. In this case the proportion of guarantees will be
assessed at each opportunity by the Bondholders’ Representative who, if it deems the guarantee
sufficient, will grant the instruments to grant the guarantees in favor of the Bondholders.
In case of doubt or of difficulties between the Representative and the Cruz Blanca Salud S.A. with
regards to the proportionality of the guarantees, the matter will be subject to the knowledge and
decision of the arbiter that may be designed in accordance to the Twenty-First clause of Bond Issue
Contract, and who will resolve with the faculties established therein. Cruz Blanca Salud S.A. will only be
able to set the guarantee if it obtains a favorable sentence to its pretensions and in no case will it be able
to grant them during the trial proceedings. For the purposes of calculating whether the total amount of
liabilities guaranteed with real guarantees exceed the amount corresponding to five percent of the Total
Assets of Cruz Blanca Salud S.A., as required in this section, the calculation must be made at one time at
the time of granting said real guarantees, based on the last consolidated quarterly financial statements
of Cruz Blanca Salud S.A..
Finally, following the contract related to the lines of credit between Inmobiliaria y Constructora CBS
S.A. and Banco Itaú and BBVA, Chile, dated July 17, 2014, the Company has signed as codebtor of the
liabilities of Inmobiliaria y Constructora CBS S.A. and has granted liens on the total amount of shares
that it holds in Inversiones Clínicas CBS S.A.
b) Isapre Cruz Blanca S.A.
On March 27, 2008 the Company established guarantees in favor of Banco de Chile which are comprised
by trademarks entered in the Register of Trade Marks of the Department of Industrial Property of the
Ministry of Economy, Promotion and Tourism.
On November 20, 2008, the twenty-fifth Extraordinary Shareholders Meeting was held to discuss the
authorization to pledge guarantees of third party obligations, according to what is set forth in number 5,
article 57 of Law 18,046. Said meeting approved that Isapre Cruz Blanca S.A. become guarantor and co
debtor of the liabilities that may arise in the lease cession contracts of the related company Inmobiliaria
Cruz Blanca S.A., with the insurance company ING Seguros de Vida S.A. and Compañía de Seguros de
Vida Cruz del Sur S.A.; the value of the cessions amounts to UF 51,822 and UF 10,983 respectively.
On September 24, 2009 was held the 26th Extraordinary Shareholder Meeting to discuss the
authorization to pledge guarantees for third party liabilities, in accordance to number 5, article 57, Law
18,056. The Meeting approved that Isapre Cruz Blanca S.A. would become codebtor of the liabilities that
Inmobiliaria Cruz Blanca S.A. would incur with Compañía Metlife Seguros de Vida S.A. with regards to
leasing cession contracts. Said cession amounts to UF 3,892.
In compliance with what is set forth in Circular 77 of the Superintendence of Health, the Company
covers its obligations by means of investments for Th$ 15,635,489 and bank performance bonds for Th$
49,000,000 At December 31, 2013.
Guarantees
Following is the composition of the guarantees pledged by the affiliate Isapre Cruz Blanca S.A. At
December 31, 2013 and June 30, 2014:
85
Concept
06/30/2014
Th$
12/31/2013
Th$
Bank performance bonds
Credits
49,626,208
2,000,000
49,000,000
2,500,000
Total
51,626,208
51,500,000
Bank perform ance bonds
Issuer
06/30/2014
Th$
12/31/2013
Th$
Banco Crédito e Inversiones
Banco de Chile
Banco Corpbanca
Banco BBVA
Banco Estado
Banco Santander
Banco Bice
9,000,000
7,000,000
8,000,000
8,000,000
10,000,000
7,000,000
626,208
9,000,000
7,000,000
8,000,000
8,000,000
10,000,000
7,000,000
0
Total bank perform ance bonds
49,626,208
49,000,000
c) Integramédica S.A.
1) Guarantees
With regards to the pledges that affect the assets of the Company, as of this date the following
guarantees of the subsidiaries of Integramédica, are in force:
The company Integramédica S.A. became a joint debtor of the liabilities acquired by its affiliate
companies Integramédica Centros Médicos S.A. and Exámenes de Laboratorio S.A. as a result of the
“Appendix to the End User of SAP support License” subscribed on September 6, 2011.
The company Integramédica S.A. became severally and jointly liable of the liabilities of its
subsidiary Centro de Diagnóstico Doctora Pilar Gazmuri S.A. as a result of the “Lease Contract” it
entered into on September 30, 2011 with Sociedad de Inversiones Chacabuco Limitada.
The company Integramédica S.A. became severally and jointly liable of the liabilities of its
subsidiary Integramédica Centros Médicos S.A. for the Cessions of the following contracts: Plaza
Oeste S.A. and Health Group S.A. (today Integramédica S.A.) that took place on June 30, 2000;
Plaza La Serena S.A. and Health Group S.A. (today Integramédica S.A.) occurred on June 30, 2000;
Nuevos Desarrollos S.A. and Integramédica S.A. occurred on January 31, 2012; Nuevos Desarrollos
S.A. and Integramédica S.A. occurred on January 31, 2012; Puente Alto S.A. (today Plaza Tobalaba
S.A. and Integramédica S.A.) occurred on November 20, 2002; Plaza El Trebol S.A. and Health
Group S.A. (today Integramédica S.A.) occurred on April 28, 2000; Nuevos Desarrollos S.A. and
Integramédica S.A. occurred on July 2, 2008; Administradora Plaza Vespucio S.A. e Integramédica
S.A. occurred on January 31, 2012.
The Company Integramédica S.A. became severally and jointly liable of the liabilities acquired by its
subsidiary Integramédica Centros Médicos S.A. with regards to the cession of the Lease contract
between Los Montes S.A. and Integramédica S.A., which was signed on November 30, 2007.
According to the contract “Debt recognition, and modification of credit contract” dated November
17, 2010 and sighted by the Public Notary Mr. Humberto Santelices Narducci, both in the loan
operation and in regards to the guarantees the following personal guarantees were established:
86
Integramédica Centros Médicos S.A., Laboratorio Labatria S.A., Exámenes de Laboratorio S.A.,
Laboratorios Integrados S.A., y Florida Salud Integral S.A. became guarantors and co debtors in
favor of Corpbanca, Banco Security, Banco Bice and Banco del Estado de Chile, in relationship to all
the liabilities of Inversiones Médicas Cuatro S.A., Idelpa Salud Dos S.A. (both companies are
nowadays part of Cruz Blanca Salud S.A.) and Integramédica under the contract “Debt recognition,
and modification of credit contract” granted on that same date and sighted by the public notary
Humberto Santelices Narducci.
The company Integramédica Centros Médicos S.A. became co debtor of the company Centro de
Diagnóstico Doctora Pilar Gazmuri S.A. with regard to all the liabilities that the latter acquires with
Banco Bice for the acquisition of a Tomosynthesis equipment.
d) Desarrollo e Inversiones Médicas S.A.
The Company Desarrollo e Inversiones Médicas S.A. holds a first degree mortgage in favor of Banco
Security, on the building located at Anabaena 336, Jardín del Mar, Reñaca, Commune of Viña del
Mar, related to the mortgage interest bearing loan. The net fixed asset value amounts to Th$
8,874,635 at December 31, 2012.
The subsidiary Clinica Reñaca S.A. became a guarantor and codebtor of Desarrollo e Inversiones
Médicas S.A. with regards of the mortgage debt of the latter with Banco Security.
e) Inversiones Clínicas Pukará S.A.
The Company has become codebtor of its affiliate Centro Médico Antofagasta S.A. with regards to
the liabilities that this company has acquired towards Banco Bice, to maintain a working capital line
of credit.

Inmobiliaria Somequi Ltda.
The real estate located at Washington N° 2,489 and Baquedano N° 298, have mortgages on them to
guarantee the obligations with Banco Security since 2007. These assets have restrictions to be
pledged and divested.

At June 30, 2014, there are assets located at the Obelisco Building of Matta N° 1839, Antofagasta,
whose divestment has been agreed and collected, but at the closing of 2011 were still recorded in the
Real Estate Registry under the name of the Company. The mortgages have not been raised due to:

-
Pending inscription of parking ports number 218, 222, 223 of the second level, 308, 311 and 326
of the third level.
-
Pending to record in deed the parking port number 225 of the second level.
To guarantee the obligations that this company acquired in 2007 with Banco Security, the Company
has mortgaged the real estate located at Matta N° 1923, 1927, 1931, 1933, 1945 and 1959, Coquimbo
N° 671 in the city of Antofagasta. These assets can not be pledged or divested.

The real estate located at Washington N° 2,489 and Baquedano N° 298, have mortgages to
guarantee the obligations the company acquired in 2006 with Banco Security. These assets cannot
be pledged or divested.
87

Inmobiliaria Centro Médico Antofagasta S.A.
To guarantee the obligations acquired by Servicios and Abastecimientos a Clínicas S.A. with Banco
Security during 2006 and 2007, mortgages have been established on the following assets:
1.
First mortgage on:
-
All the underground and the first, second and third levels and eleventh level of the Pukará
building located at Matta N° 1868.
-
On the property located at 8367 Pedro Aguirre Cerda Avenue, lot 255, block 19, of the El
Trocadero suburb.
2. Also, the lending company established a second mortgage on the same building to guarantee the
faithful and timely commitment of all and each of the obligations that the Affiliate Company
currently owes.
3. For the assets singled out in point a)1. there is a restriction to pledge and divest, in favor of
Banco Security.
To guarantee the obligations acquired in 2006 with Banco Security, the Company has set mortgages
on real estate located in Matta numbers 1923, 1927, 1931, 1933, 1945 and 1959, Coquimbo N° 671 of
the city of Antofagasta. These assets have restrictions to pledge and divest.
f) Servicios de Gestión Ltda.
The related company Isapre Cruz Blanca S.A. is established as guarantor and co debtor of the obligations
that the affiliate company Inmobiliaria Cruz Blanca S.A. acquired in the leasing cession contracts, in favor
of the insurance companies ING Seguros de Vida S.A. and Compañía de Seguros de Vida Cruz del Sur S.A.
On September 24, 2009, Isapre Cruz Blanca S.A. was established guarantor and co debtor of the
obligations that the affiliate company Inmobiliaria Cruz Blanca S.A. acquired in the leasing cession
contracts, in favor of MetLife Chile Seguros de Vida S.A.
With regards to the financial lease contracts that Isapre Cruz Blanca S.A. held with ING Seguros de Vida
S.A. and Compañía de Seguros de Vida Cruz del Sur S.A. and by agreement of the Board, during 2008 a
renegotiation and restructuring has been carried out on the real estate leasing contracts that Isapre Cruz
Blanca S.A. holds with said insurance companies and that, in a first stage, considered the modification of
the payment terms, rates and installments related to those contracts and, in a second stage, included the
cession of rights and obligations that would correspond to Isapre Cruz Blanca S.A. as lessee and main
subject of the purchase options, to the affiliate company Inmobiliaria Cruz Blanca S.A., which belongs to
the same entrepreneurial group. The latter subsequently sub-leased the assets to Isapre Cruz Blanca S.A.
As a result of the cession, the terms and conditions of the leasing contracts did not experience changes with
regards to the current conditions and allows that through sub leases, Isapre Cruz Blanca S.A. can keep the
use of the real estate.
As requisite to get access to the cession of leasing contracts, the lessors ING Seguros de Vida S.A. and
Compañía de Seguros de Vida Cruz del Sur S.A. requested that Isapre Cruz Blanca S.A. would become
guarantor and co debtor of the obligations that under those contracts, the affiliate Inmobiliaria Cruz
Blanca S.A. would acquire in favor of the abovementioned insurance companies, which was approved by
the twenty-fifth Extraordinary Shareholders Meeting held on November 20, 2008.
During September 2009 a new financial lease contract was made with MetLife Chile Seguros de Vida S.A.,
which included the cession of rights and obligations in the same terms that corresponded to Isapre Cruz
Blanca S.A. as lessee and main subject of the purchase option, to the company Inmobiliaria Cruz Blanca
S.A., which belongs to the same entrepreneurial group.
88
As a result of the contract of guarantee and co-debt dated November 17, 2010, sighted by the Public Notary
of Santiago Mr. Eduardo Diez Morello, Servicios de Gestión Limitada, (iv) Inmobiliaria Cruz Blanca and
Centro Medico Familiar S.A. became guarantors and co debtors in favor of Corpbanca, Banco Security,
Banco Bice and Banco del Estado de Chile with regards to all liabilities of Inversiones Médicas Cuatro
S.A., Idelpa Salud Dos S.A. (both companies currently Cruz Blanca Salud S.A.) and Integramédica under
the contract named "Acknowledgement of Debt, Modification of Contract of Credit" granted on that
same date, and sighted by the Public Notary Humberto Santelices Narducci.
Through deeds dated May 11, 2011, Inmobiliaria Cruz Blanca S.A. exercised the purchase option set in
the leasing contracts with Metlife Chile Seguros de Vida S.A.
Subsequently, through deeds dated June 16, 2011 Metlife Chile Seguros de Vida S.A. lifted and cancelled
for all legal purposes, the commercial pledge and prohibitions, declaring that there is no debt related to
the contracts mentioned herein.
g) Inversiones CBS SpA
As a result of the contract of guarantee and co-debt dated November 17, 2010, sighted by the Public Notary
of Santiago Mr. Eduardo Diez Morello, this company became a guarantor and co debtor in favor of
Corpbanca, Banco Security, Banco Bice and Banco del Estado de Chile with regards to all liabilities of
Inversiones Médicas Cuatro S.A., Idelpa Salud Dos S.A. (both companies currently Cruz Blanca Salud
S.A.) and Integramédica under the contract named "Acknowledgement of Debt, Modification of Contract
of Credit" granted on that same date, and sighted by the Public Notary Humberto Santelices Narducci.
h) Cruz Blanca Salud Internacional S.A.
As of June 30, 2014, the company does not have guarantees pledged to third parties, nor contingent assets
or liabilities nor other commitments.
i)
There are inscriptions regarding the following properties:
1.
This company owns the following real estate located in Arica, and that are pledged in mortgage in
favor of Banco Security: Box numbers 112, 113, 213, 214, 219, 312, D-11, D-12, D-13, D-14, DX, 401,
402, 404, 405, 406, 410, 414, 417, 419, 420, 421, 423, 424, 425, 427, 428, 429, 430, 431, 432, 433,
435, 436 and Hospital, Building Edificio Clinica San José located in 1370 Juan Noé street, Arica,
which is entered in page 2631 number 2080 and page 2630 number 2079, both in the Properties
Register of the Real Estate Registry of Arica, of year 1991.
2. Transit, power and visitation easements recorded in page 4602 number 1958 in the Registry of
Mortgage and Liens of the Curator of Real Estate of Arica.
j)
As of June 30, 2014, the company has the following guarantees pledged to third parties:
The company is a joint and severally liable codebtor of the liabilities of Inmobiliaria y Constructora
CBS S.A. related to the contract of lines of credit signed on July 17, 2014 with Banco Itaú and BBVA.
In the same contract the company has granted a lien on the total amount of the shares it owns in
The company Inmobiliaria y Constructora CBS S.A. has pledged the following guarantees:
In regards to the contract for the opening of lines of credit signed on July 17, 2014 with Banco Itaú and
Banco BBVA and has pledged the following guarantees in favor of the aforementioned banks:
Lien on the whole of the subordinated debt.
89
Mortgage on the following land owned by the company:
a) Property located in Avenida Departamental 01455-A, La Florida, Santiago.
b) Property located in Avenida Departamental 01455-B, La Florida, Santiago.
Lien on the construction and operation contracts that may be signed regarding the hospital that will be
built in the abovementioned locations.
The companies Servicios Clínicos Domiciliarios S.A.and Servicios de Personal Clínico CBS Dos S.A.
have not pledged guarantees nor have other commitments.
k) Cruz Blanca Compañía de Seguros de Vida S.A.
As of June 30, 2014, the company does not have guarantees pledged to third parties, nor contingent
assets or liabilities nor other commitments.
NOTE 31.- PERSONNEL DISTRIBUTION
The personnel distribution of the Group At June 30, 2014 and December 31, 2013 is the following:
06/30/2014
Segm ent
Insurer Area
Hospital Healthcare Area
Outpatients Healthcare Area
International Area
Other
Total
Managers
and
Executives
Staff and front
desk
Clinical Area
Total
28
36
75
12
18
1,978
592
1,665
186
135
0
1,345
1,302
249
0
2,006
1,973
3,042
447
153
169
4,556
2,896
7,621
12/31/2013
Segm ent
Insurer Area
Hospital Healthcare Area
Outpatients Healthcare Area
International Area
Other
Total
Managers
and
Executives
Staff and front
desk
Clinical Area
Total
28
39
76
9
18
1,926
755
1,873
156
126
0
1,163
1,320
220
0
1,954
1,957
3,269
385
144
170
4,836
2,703
7,709
90
NOTE 32.- ENVIRONMENT
As Cruz Blanca Salud S.A. is an investment company, does not generate operations that could impact
the environment, and for this reason it has not made disbursements related to this.
The affiliates are concerned about the protection of the environment. As a result, all installations that
operate continuously use as a main source of power electricity and gas, using only in cases of emergency
oil for the power generator equipment.
The handling of both solid and liquid waste is of paramount importance for Group CBS and its affiliates
that are involved in the hospital and outpatients healthcare. Therefore, there is a strict control on the
compliance of the handling of solid waste in accordance with the Ministry of Health (REAS, by its
acronym in Spanish). The same is true regarding the liquid waste which is managed with a detailed
discharge control plan through discharge chambers and an adequate use of sanitizers and cleaning
chemicals while minimizing the impact to the environment and to peoples' health.
The affiliates are participants in the health care provider market, whose nature involves the rendering of
a service that does alter the environmental conditions. Both the parent company and its affiliates
comply with the current standards and regulations.
On June 20, 2014 the Regional Secretary of the Ministry of Transportation and Telecommunications of
the Metropolitan Region, in Resolution Number 4140, approved the Study of Impact on the Urban
Transportation System presented by Inmobiliaria y Constructora CBS S.A. for the project named
"Clínica Cruz Blanca" which will be located in Avenida Departamental 1455, La Florida, Santiago.
91
NOTE 33.- LOCAL AND FOREIGN CURRENCY
Assets
06/30/2014
Th$
12/31/2013
Th$
27,210,902
19,514,037
US dollar
Peruvian New Sol
UF
2,375
1,508,614
2,222,527
23,477,386
8,077
1,891,781
2,612,040
15,002,139
11,615,013
26,074,375
Peruvian New Sol
UF
0
6,950,219
4,664,794
14,716
17,382,401
8,677,258
8,617,215
7,643,037
Peruvian New Sol
UF
143,812
79,905
8,393,498
22,516
27,571
7,592,950
Cuentas por cobrar a entidades relacionadas corrientes
366,560
485,993
366,560
485,993
50,800,836
46,853,452
Peruvian New Sol
2,237,397
48,563,439
2,109,178
44,744,274
Inventory
2,263,486
2,407,095
Peruvian New Sol
158,711
2,104,775
129,349
2,277,746
Current tax assets
4,832,009
7,882,987
Peruvian New Sol
46,203
4,785,806
143,244
7,739,743
105,706,021
110,860,976
Total Current Assets
92
NOTE 33.- LOCAL AND FOREIGN CURRENCY (Continued)
31,126,489
23,961,093
UF
26,167,179
4,959,310
19,952,013
4,009,080
38,275,998
36,869,057
38,275,998
36,869,057
105,029,981
102,943,496
Peruvian New Sol
3,639,023
101,390,958
2,452,809
100,490,687
Goodw ill
83,720,463
83,533,337
Peruvian New Sol
2,948,480
80,771,983
2,761,355
80,771,982
Property, plant, and equipm ent
120,658,439
116,913,293
Peruvian New Sol
9,331,155
111,327,284
8,839,558
108,073,735
Investm ent property
1,748,344
1,768,412
1,748,344
1,768,412
Deferred tax assets
5,364,570
4,922,321
Peruvian New Sol
1,051,655
4,312,915
729,198
4,193,123
Investm ents accounted for using the equity m ethod
300,295
291,369
300,295
291,369
Total Non-Current Assets
386,224,579
371,202,378
Total Assets
491,930,600
482,063,354
93
NOTE 33.- LOCAL AND FOREIGN CURRENCY (Continued)
06/30/2014
12/31/2013
Th$
Th$
24,346,326
24,158,186
US dollar
Peruvian New Sol
UF
124,776
83,963
2,398,437
21,739,150
161,533
73,888
3,329,366
20,593,399
Trade payables and other accounts payable, current
97,298,252
88,253,418
Peruvian New Sol
2,332,562
94,965,690
2,062,403
86,191,015
Current tax payables
238,404
635,140
Peruvian New Sol
3,044
235,360
83,236
551,904
Other provisions, current
25,916,173
23,447,529
25,916,173
23,447,529
Em ployee benefits provisions, current
1,746,192
856,307
Peruvian New Sol
51,395
1,694,797
0
856,307
3,311,402
3,744,340
Peruvian New Sol
101,404
3,209,998
0
3,744,340
Total Current Liabilities
152,856,749
141,094,920
121,322,739
126,672,614
328,861
189,069
60,847,695
59,957,114
372,365
221,233
60,083,216
65,995,800
4,214
4,214
4,214
4,214
Deferred tax liabilitites, non-current
20,459,358
20,148,123
Peruvian New Sol
Pesos
1,433,453
19,025,905
1,484,150
18,663,973
1,234,778
1,789,364
775,778
459,000
0
1,789,364
Equity
196,052,762
192,354,119
196,052,762
192,354,119
Total non-current liabilities and Net Equity
339,073,851
340,968,434
Total Liabilities
491,930,600
482,063,354
Liabilities
US dollar
Peruvian New Sol
UF
Peruvian New Sol
94
NOTE 34.- NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED
OPERATIONS
The Group does not have non-current assets held for sale nor discontinued operations.
NOTE 35.- SIGNIFICANT EVENTS
As of June 30, 2014, the Company has issued the following significant events:
General Shareholders' Meeting
On April 25, 2014 the Company reported to the Superintendence of Securities and Insurance that on
that date was held the Ordinary Shareholders’ Meeting of Cruz Blanca Salud S.A., which was held with a
quorum of 92.009672% of the shares issued and paid.
During this meeting the following matters were covered:
1.
The Annual Report, General Balance and Financial Statements of the company, corresponding
to the 2013 period, had been approved;
2. The Report of the Independent Auditor with respect for the period ended on December 31, 2013,
was approved;
3. The compensation of the Board for the 2012 period and the expenses for said period was
approved.
4. The activity report of the Directors Committee and their compensation was approved for the
2014 period.
5.
The report on the information described in Title XVI (Disclosures on transactions with related
entities) of Law 18046 on Corporations was approved.
6. KPMG Auditores Consultores Limitada was designated as the Independent Auditor for the 2014
period.
7.
Humphreys Limitada and Fitch Chile Clasificadora de Riesgo Limitada were designated as risk
ratings agencies.
8. The newspaper Diario Financiero was designated as the medium which will carry the official
publications of the Company.
9. As definite minimum compulsory dividend, an additional profit distribution of $6.5 (six point
five Chilean pesos) per share, payable from may 7, 2012 to the shareholders recorded in the
corresponding Registry five days prior to that date. In this regard, Annex 1 to the Circular
Number 660 of the Superintendence of Securities and Insurance is attached.
10. It was made present that a certified copy of the minutes of the Meeting would be sent to the
Superintendence of Securities and Insurance within the time frame set for this in the current
regulations and that at each opportunity the representatives of the Pension Funds
Administration companies voiced their approval.
Summon to General Shareholders' Meeting
On March 28, 2014 the Company reported to the Superintendence of Securities and Insurance that in
meeting of the Board of Directors held on March 27, the Board agreed to:
A. Summon the General Shareholders' Meeting to assemble on April 24, 2014 at 11.30am in Teatro Mori,
located at 5413 Avenida Presidente Kennedy, Las Condes, in order to:
1.
Make a statement regarding the Annual Report, General Balance and Financial Statements of
95
the Company, corresponding to 2013.
2.
Make a statement regarding the report of the independent accountants.
3.
Make a statement regarding the Board compensation for the period 2013 and to report on Board
expenses corresponding to 2013.
4.
Report on activities and expenses of the Committee of Directors and to establish its
compensation for 2013.
5.
Report on information set forth in Title XVI of Law 18,046.
6.
Designate an independent accountant.
7.
Designate risk rating agencies.
8.
Designate the newspaper where the company's communications will be published.
9.
Propose amounts for dividend payments.
10. Treat any other matter of interest for the shareholders and that may be the subject of this type of
Meeting.
B. Regarding dividends payments, the Board agreed to propose to the Shareholders Meeting the
payment of $6.5 per share, corresponding to 40.13% of 2013's profits.
Election of Committee of Directors and Chairman of the Board
On March 12, 2014 Cruz Blanca Salud S.A. reported that in Board session held on March 11, 2014, the
Board of Directors approved the following:
1.
To appoint Mr. Salvador Said Somavía as Chairman of the Board of Cruz Blanca Salud S.A.
2.
As independent member of the Board, Mr. Jorge Bande Bruck appointed Messrs.’ Carlos
Antonio Jaureguizar Ruiz-Jarabo and Rodrigo Muñoz Muñoz to form with him the Directors
Committee of the Company, as set forth in article 50bis of Law 18.046.
Agreements of the extraordinary Shareholders' Meeting
On March 12, 2014, the Company reported to the Superintendence of Securities and Insurance that
during the Extraordinary Shareholders' Meeting of Cruz Blanca Salud S.A. held on March 11, 2014, the
following agreements were reached:
1.
To increase the amount of Members of the Board from 7 to 9 members.
2.
To modify article 7 of the Company's by-laws to reflect the increase in the number of members
that compose the Board of Directors.
3.
To revoke the current Board of Directors and to elect the following people as the Company's
Directors, for the following three years:









4.
Alvaro Erazo Latorre
Carlos Antonio Jaureguizar Ruiz-Jarabo
Gabriela Pueyo Roberts
Ignacio Ereño Iribarren
Jorge Bande Bruck (independent)
José Francisco Tomás Martínez
Monica Paramés García-Astigarraga
Rodrigo Muñoz Muñoz
Salvador Said Somavía
Prepare a revised consolidated text of the Company By-Laws.
96
Outcome of the Tender Offer
On February 24 the Company reported to the Superintendence of Securities and Insurance of the
successful outcome of the tender offer made by Grupo Bupa Sanitas Chile Uno SpA. Said company
acquired control of Cruz Blanca Salud on February 24, 2014, by acquiring 359,520,000 shares that
represent a 56% of its share capital, and therefore has acquired the control of Cruz Blanca Salud S.A.
This will be realized on March 11, 2014, in the Extraordinary Shareholders' Meeting.
Summon To Extraordinary Shareholders' Meeting
On January 31, 2014 the Company communicated to the Superintendence of Securities and Insurance of
the summon to an Extraordinary Shareholders' Meeting of Cruz Blanca Salud S.A. to be held on March
11, 2013 in order to increase the number of Directors from 7 to 9, to modify the Company By-Laws in
case of reaching said agreement, revoke the current Board and name the new Board members if the
previous step is approved, and to agree on a new consolidated text for the By-Laws.
Satisfactory Due Diligence
On January 15, 2014, the Company reported to the Superintendence of Securities and Insurance that the
due diligence process carried by Bupa Sanitas SL was satisfactorily concluded.
This due diligence took place in the context of the tender offer that Fondo de Inversión Privado
Costanera ("FIP Costanera") had communicated to the Company, related to the conditional promise to
sell shares underwritten with Grupo Bupa Sanitas S.A., related to a tender offer for the acquisition of
shares for at least 50% of the share capital of CBS plus one share (which could reach up to 56% of the
share capital of CBS).
Signature of promise to trade shares
On December 1, 2013, Cruz Blanca Salud S.A. communicated the following to the Superintendence of
Securities and Insurance:
1) Fondo de Inversión Privado Costanera ("FIP Costanera"), which is related to the Said Somavía
family and that is the current controlling party of CBS, communicated that it has underwritten a
conditional promise to sell its interest to Grupo Bupa Sanitas S.L., a company organized and
established in accordance to the laws of the Kingdom of Spain ("Bupa Sanitas"), seeking a tender
offer for shares for at least 50% of the share capital of BCS plus one share (which can also be for up
to 56% of the share capital of CBS), which shall establish as success condition obtaining acceptances
to sell for 50% of the CBS share capital, plus one share.
2) The share price in the tender offer shall be $525 per share. The transaction also includes a put
option for the remainder of the shares that FIP Costanera shall hold in CBS, which can be executed
after 24 months since the closing of the transaction or before in case of a change in control of CBS. If
the option is executed it will implemented through a second tender offer for shares for the total of
the CBS shares that are not held by Bupa Sanitas - meaning, addressed to all shareholders -. The
price will be the same price of the original tender offer corrected by inflation capped at 4% per year.
3) Bupa Sanitas and FIP Costanera have agreed to provide mutual exclusivity while the confirmation
due diligence is carried out. In case the confirmation due diligence is satisfactory for Bupa Sanitas, it
is expected that the tender offer will occur during January 2014.
4) The Board of Directors has not issued an opinion about the convenience of the transaction for the
shareholders, which will happen, in case the tender offer comes to happen, in the terms foreseen in
the Capital Markets Law and CBS will keep the Superintendence informed about every relevant
development with regards to the events disclosed.
Authorization to operate for Cruz Blanca Compañía de Seguros de Vida S.A. (Life
Insurance Company)
97
On October 17, 2013, the company informed that on October 15, 2013, Cruz Blanca Compañía de
Seguros de Vida S.A. received the authorization to operate from the Superintendence by means of
Circular 23083.
Acquisition of Mediperú S.A.
In significant event filed on September 10, 2013, Cruz Blanca Salud S.A. informed that through its
Peruvian subsidiary Cruz Blanca Salud Perú S.A.C., it has signed a share purchase agreement through
which it acquired 100% of the shares of the companies MediPerú S.A. and Panaholdings Investment
Corp., companies that under the brand "MediPerú" in the Republic of Peru, carry the business of
imaging diagnosis, resonance, tomography, x-rays, echography and samples collection in the city of
Lima. The purchase price amounted to US$ 5.8 million, amount entirely financed through the acquirer's
own funds.
The sellers do not have any relationship with Cruz Blanca Salud S.A. nor with its subsidiary Cruz Blanca
Salud Perú S.A.C. and therefore the acquisition is not a transaction with a related party as presented in
the Corporations Act.
Acquisition of Anglolab S.A.
On July 17, 2013, the company informed that on July 16, 2013 and through its Peruvian subsidiary Cruz
Blanca Salud Peru S.A.C., it signed a share purchase agreement through which it acquired 70% of the
shares and therefore the control of the company Anglolab S.A., a company established under the laws of
the Republic of Peru, whose business is performing clinical laboratory activities, blood bank and
pathological anatomy in different hospitals and medical centers in Lima and other provinces of the
Republic of Peru. The purchase price - entirely funded with the acquirer's own funds - amounted to US$
6 million, price that is subject to financial and accounting adjustments.
The sellers do not have any relationship with Cruz Blanca Salud S.A. nor with its subsidiary Cruz Blanca
Salud Perú S.A.C. and therefore the acquisition is not a transaction with a related party as presented in
the Corporations Act.
Establishment of Cruz Blanca Compañía de Seguros de Vida S.A. (Life Insurance
Company)
On May 2, 2013 it was informed that on April 30, 2013 the legal formalities for the constitution of
special corporation Cruz Blanca Compañía de Seguros de Vida S.A. were completed by entering
company in the Registry of Commerce of Santiago and the publication in the Official Gazette of
certificate issued by the Superintendence of Securities and Insurance containing the extract of
company's bylaws.
the
the
the
the
In addition, it was stated that the authorization to exist and the approval of the bylaws of the Company
were granted through exempt resolution number 122 of April 18, 2013.
Election of Committee of Directors and Chairman of the Board
On April 30, 2013, Cruz Blanca Salud S.A. reported that in Board session held on April 29, 2013, the
Board of Directors approved to designate Mr. Salvador Said Somavía as Chairman of the Board of Cruz
Blanca Salud S.A. and Messrs.’. Alvaro Fischer Abeliuk, Jorge Bande Bruck and Rodrigo Muñoz Muñoz
were appointed members of the Committee of Directors of the Company.
Agreements of General Shareholders' Meeting and dividend payment
On april 26, 2013, the Company reported to the Superintendence of Securities and Insurance that on
that date it carried the General Shareholders' Meeting of Cruz Blanca Salud S.A., which was held with
95,633% of the issued shares and paid by the company. During this meeting the following topics were
treated:
1.
Approval of the Annual Report, General Balance and Financial Statements of the Company for
98
2012;
2.
Approval of the Independent Accountant's report corresponding to the period ended December
31, 2012;
3.
Election of the members of the Board, resulting in the election of the following persons:
a. Alvaro Fischer Abeliuk (independent);
b. Jorge Bande Bruck (independent);
c. Marcos Büchi Buc;
d. Alvaro Erazo Latorre:
e. Rodrigo Muñoz Muñoz:
f. Salvador Said Somavía; and
g. Pablo Wagner San Martín
4.
Approval of the compensation proposed for the Board for 2013 and the corresponding expenses
corresponding to 2012.
5.
Approval of the report on the activities of the Committee of Directors and its compensation for
2013.
6.
Approval of the report on the information required in Title XIV of Law 18.046.
7.
Designation of PricewaterhouseCoopers Consultores, Auditores y Compañía Limitada as the
independent accountants for 2013.
8.
Designation of Clasificadora de Riesgo Humphreys Limitada and Fitch Chile Clasificadora de
Riesgo Limitada as risk rating agencies.
9.
Designation of Diario Financiero as the medium that will contain the Company's publications.
10.
Approval of the definitive minimum statutory dividend distribution under the form of an
additional $11 (eleven Chilean pesos) per share. This dividend will be payable as of May 7, 2013,
to the shareholders recorded in the corresponding Registry on the midnight of the fifth business
day prior to the payment date.
To this effect, find attached as appendix form 1 of Circular number 660 of the Superintendence of
Securities and Insurance.
Summon to General Shareholders' Meeting and Dividend proposal
On April 4, 2013 the Company reported to the Superintendence of Securities and Insurance that in
meeting of the Board of Directors held on April 3, 2013 the Board agreed to:
Summon the General Shareholders' Meeting to assemble on April 26, 2013 at 10 am in Teatro Mori,
located at Avenida Presidente Kennedy 5413, Las Condes, in order to:
1.
Make a statement regarding the Annual Report, General Balance and Financial Statements of
the Company, corresponding to 2012.
2.
Make a statement regarding the report of the independent accountants.
3.
Election of Member of the Board.
4.
Make a statement regarding the Board compensation for the period 2013 and to report on Board
expenses corresponding to 2012.
5.
Report on activities and expenses of the Committee of Directors and to establish its
compensation for 2013.
6.
Report on information set forth in Title XVI of Law 18,046.
7.
Designate an independent accountant.
8.
Designate risk rating agencies.
9.
Designate the newspaper where the company's communications will be published.
99
10.
Propose amounts for dividend payments.
11.
Treat any other matter of interest for the shareholders and that may be the subject of this type of
Meeting.
Regarding dividends payments, the Board agreed to propose to the Shareholders Meeting the payment
of $11 per share, corresponding to 39.73003% of the shares of 2012.
Establishment of a Life Insurance Company
On January 9, 2013 the company reported that in the Board Meeting held on that date it was agreed to
create a life insurance company, which would be an affiliate of Cruz Blanca Salud S.A.
The company’s name will be Cruz Blanca Compañía de Seguros de Vida S.A. and its single purpose will
be to insure, on a premium base, the risks of people or to guarantee said people, within or at the end of a
term, a principal, a settled policy or an annuity for the insured person or the beneficiaries, in accordance
to what is set forth in articles four and eight of Law Decree 251 of 1931, as well as, to enter into any other
activity that the Superintendence of Securities and Insurance authorizes with a general standard or
other regulation that declare consistent or complementary to the business of insurance companies of the
second group.
It was also reported that this company shall have an initial capital of UF 120,000 split among 3,421,131
shares of a single series without par value. Cruz Blanca Salud S.A. will own 99.99% of the shares issued
by Cruz Blanca Compañía de Seguros de Vida S.A.
The company will be financed through capital contributions from its shareholders, notwithstanding that
in the future it may generate its own financing alternatives.
Finally, it was reported that once that once establishment formalities are complete, the Superintendence
of Securities and Insurance will be notified.
NOTE 36.- SUBSEQUENT EVENTS
Management believes that in the period between June 30, 2014 and the issue date of these financial
statements, there have been no financial or other events that may significantly affect the balances or the
interpretation of these financial statements, except for the following:
Loan to build a hospital in the commune of La Florida
On July 2014 the company Inmobiliaria y Constructora CBS S.A., which is an indirect subsidiary of Cruz
Blanca Salud S.A., signed a loan agreement with Banco Bilbao Vizcaya Argentaria, Chile y Banco Itau
Chile for an amount of up to UF 3,224,940. The proceeds from the loan will be used in the construction
expenses and Value Added Tax financing related to the construction and operation of a hospital of
Group Cruz Blanca Salud. The hospital will be located in the commune of La Florida, Metropolitan
Region. The loan has a term of 20 years, including the construction period, and the contract considers
the habitual guarantees for this type of operations, such as a mortgage on the land where the hospital
will be located and lien on the shares of the affiliates. Furthermore, Cruz Blanca Salud S.A. has been
established as joint and severally liable codebtor to guarantee the creditors of the complete, effective and
timely compliance of all the obligations assumed under the loan contract.
100

Financial Statements 30-06-2014

Transcription

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