Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Investor Presentation (March 2020)
42 slides from Cholamandalam Financial's investor presentation, March 2020
Slide 1: Cholamandalam Financial Holdings Limited Corporate Presentation – FY20
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED (CFHL) CORPORATE PRESENTATION – FY20 1
Slide 2: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 119 Years of $5.35 $10 Turnover cap (as on 31st Years Existence B B (FY19) Mar 2019 Listed 3 Sectors 28 Businesses 9 Companies 18 Geographical 90+ Manufacturing 50,000+ Work force Countries Presence Locations Locations 2
Slide 3: Spirit of Murugappa
SPIRIT OF MURUGAPPA &S Chola Financial Holdings
Slide 4: Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.50% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 5: Shareholding pattern & Share price movement
Shareholding pattern & Share price movement Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 CFHL (Rs. / Share) 479.00 466.05 488.15 504.20 290.05 BSE Sensex 38,672.91 39,394.64 38,667.33 41,253.74 29,468.49 5
Slide 6: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax Networth EPS (Rs.) FY20 13136 1165 4591 29.35 -18% -21% 20% 16% FY19 10947 1415 3944 37.13 Major reasons for Drop in Profit after tax - One time impairment provision of Rs 504 Cr. on loans to cover contingencies on account of C
Slide 7: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit after tax FY20 CFHL CMSRSL 0% FY19 CFHL CMSRSL 0% 0% 0% CMSGICL CMSGICL 12% 14% CIFCL CIFCL 88% 86% Rs.in Cr. Rs.in Cr. CFHL CMSGICL CIFCL CMSRSL CFHL Consol CFHL CMSGICL CIFCL CMSRSL CFHL Consol 1 138 1026 1 1165 1 196 1217 1 1415 7
Slide 8: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) FY20 FY19 CIFCL FY20 FY19 Income 91 74 Disbursements (Rs. in Cr) 29,091 30,451 Expenses 4 3 Assets Under Management (Rs. in Cr) 60,549 54,279 Profit Before Tax 87 71 No.of Branches 1,105 900 Tax Expense 4 4 Profit After Tax 83
Slide 9: Cholamandalam Investment and Finance Company Limited (CIFCL)
Cholamandalam Investment and Finance Company Limited (CIFCL) 9
Slide 10: CIFCL: Financial Summary (Rs. in Cr)
CIFCL: Financial Summary (Rs. in Cr) Disbursements Assets Under Management 12% 30,451 29,091 60,549 54,279 25,114 42,924 18,591 34,167 16,380 29,650 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Profit After Tax Networth 32% 8,172 6,176 5,098 1,186 1,052 4,285 974 3,657 568 719 FY16 FY17 FY18 FY
Slide 11: Vehicle Finance
Vehicle Finance & Chola aye murugq| 1a Financial Holdings ii SAPP
Slide 12: Vehicle Finance: FY20 Performance
Vehicle Finance: FY20 Performance Disbursements • Disbursements has degrown -6% in FY20 as compared to FY19. Assets under management • Assets have grown by 9% as compared to FY19. Loss and • Loan losses is at 0.9% as compared to 0.8% of FY19 at normal level as provisions well as after adjusting COVI
Slide 13: Sector outlook – Vehicle Finance business
Sector outlook – Vehicle Finance business Sector Outlook Chola’s Position • A faster recovery of the Rural sector and a good Rabi • More than 80% of our branches ae present in the harvest expected to support tractor demand rural areas, towns and semi urban areas which immediately post easing of lock
Slide 14: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ -3% Chola @ -10% CAGR @ 4% CAGR @ 5% 5,65,408 2,73,844 2,34,621 4,61,213 4,31,438 2,00,406 1,93,023 3,68,795 1,72,740 3,31,905 YTD Mar'17 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'25 (E) YTD Ma
Slide 15: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ -58% Chola @3% CAGR @ 5% (47%) 33,54,249 33,72,151 2,95,394 2,65,425 30,18,149 31,14,258 2,38,165 27,74,277 2,19,032 1,55,168 YTD Mar'17 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'25 (E)
Slide 16: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 17: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re
Slide 18: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala Kerala 6% 5% 6% 5% 5% 5% Pondicherry Pondicherry 10% 11% Telangana 4% Telangana 4%
Slide 19: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE 1% CE 13% 6% 2% 5% 5% 2 Wheeler LCV 2 Wheeler 4% 19% 6% LCV 21% MUV 6% Used Vehicles 26% Used Vehi
Slide 20: Vehicle Finance: Financial summary FY20 (I)
Vehicle Finance: Financial summary FY20 (I) Disbursements (₹Cr) Assets under management (₹Cr) IGAAP IND AS IGAAP IND AS 2,056 24,983 -6% 42,150 23,387 40,606 20,607 31,473 14,471 3,360 12,383 2,186 20,271 17,914 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assignment 20
Slide 21: Vehicle Finance: Financial summary FY20 (II)
Vehicle Finance: Financial summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 21% 6,563 1,269 5,430 -26% 988 945 4,192 3,609 3,159 682 555 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 21
Slide 22: Home Equity
Home Equity & Chola aye murugq| 1a Financial Holdings 22 SAPP
Slide 23: Home Equity— FY20 Performance
Home Equity— FY20 Performance Disbursements • Disbursements has de-grown -5% in FY20 as compared to FY19. Asset under • The business has grown the Assets by 11% in FY20 management • Loan losses is at 0.04% from -0.04% at normal level & is at 0.7% from Loss and provisions -0.04% after adjusting COVID
Slide 24: Home Equity: Industry outlook
Home Equity: Industry outlook Sector Outlook Chola’s Position • CRISIL expects the COVID-19 pandemic and the • Chola shall continue to focus on retail ticket size loans lockdown to impact credit growth majorly during first to reduce concentration risk half of fiscal 2021. Measures from RBI and Gover
Slide 25: Home Equity—Financial Summary FY20 (I)
Home Equity—Financial Summary FY20 (I) Disbursements (₹Cr) Assets under Management (₹Cr) IGAAP IND AS IGAAP IND AS -5% 11% 3,837 2,425 3,662 3,476 1,671 3,174 671 3,056 1,978 2,904 9,954 10,536 9,424 6,873 6,689 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assigned 25
Slide 26: Home Equity—Financial Summary FY20 (II)
Home Equity—Financial Summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 19% 1,478 305 1,217 1,247 1,184 -20% 1,124 261 244 221 207 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 26
Slide 27: Cholamandalam MS General Insurance Company Limited (CMSGICL)
Cholamandalam MS General Insurance Company Limited (CMSGICL) 27
Slide 28: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years (Rs In Cr) CAGR (Last 15 Years) = 17% 1,89,302 1,69,449 1,50,572 1,28,213 96,394 77,541 84,686 58,357 69,086 38,400 47,355 26,200 28,899 31,904 16,000 18,100 21,000 FY'04
Slide 29: Motor & Retail Health are the Largest GI Segment and Continue to Grow
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 63% of the overall GWP for Private With favorable regulations & increasing motor premium– General Insurers (single largest segment) Claims ratio is expected to normalize (Private Motor Insurance–
Slide 30: Industry Landscape – Solid GWP Growth for Private GI Players (Ex-Crop)
Industry Landscape – Solid GWP Growth for Private GI Players (Ex-Crop) FY'20 GWP Growth over Last 5 years GWP FY'20 Motor FY'20 Heath + FY'20 Fire Insurers Market Share (Rs in Crs) FY'20 CAGR Mix % PA Mix% Mix% ICICI-Lombard 13302 10.5% 9.4% 15.4% 51.0% 24.0% 11.7% Bajaj Allianz 10298 7.3% 7.3% 17.2
Slide 31: Amongst the Fastest Growing Private General Insurer
Amongst the Fastest Growing Private General Insurer FY’20 Solid GWP growth over the last 10 years 8th Largest High growth over the last 5 years Private Insurer Rs In Crs CAGR (2009-20) = 18.4% (CAGR 2015-2020 = 18.4%) by GWP 4,103 4,429 4,398 (8th Rank without Crop) 3,133 2,452 1,855 1,890 1,621 968
Slide 32: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commerci 141 al 8% 89 89 67 57 41 Retail 92% FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 Significant growth in retail oriented policies Balanced Geographic Pres
Slide 33: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment Increasing market share in Motor (Largest GI Segment) Significant traction in Motor Private GI Market Share by GWP # Policies in 000s CAGR = 31.7% 8.2% 8.3% 6th 7.8% 3,597 7.4% 7.4% 6.5% 1,992 Largest Private 909 Motor General Insurer FY'15 FY'
Slide 34: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (Chola Finance + Coromandel+ SMO) (IBL + Toyota) (PSU Banca, NBFC, OEM) 34% of FY20 GWP 28% of FY20 GWP 23% of FY20 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs CAGR = 46.7% 1498 1237 12
Slide 35: Pan India Multi-channel distribution network
Pan India Multi-channel distribution network Offices as on Mar’20 143 464 Chola MS branches Digitally Enabled Offices (Chola across India Insurance Xpress) 900+ 30k+ Access to Chola Finance Network of agents branches 4+ Mobikwik Large OEM partnership Digital partnership 10+ Banca / NBFC tie-ups. Acc
Slide 36: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 30.9% 6000 35.0% 29.7% 27.8% 4552 4824 19.1% 19.4% 18.7% 4429 4398 30.0% 4103 17.4% 5000 25.0% 3133 13.0% 13.4% 4000 20.0% 3000 15.0% 2452 8.0% 10.7% 9.8% 10.0% 1890 6.0% 7.8% 2000 5.0% -0.7% 1000 0.0% 0 -5 . 0% 1.9% FY'15 F
Slide 37: Financial Highlights
Financial Highlights FY'19(I FY 2019-20 Particulars – In Rs. Cr FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 ND AS) I GAAP IND AS Gross Written Premium 685 785 968 1347 1621 1855 1890 2452 3133 4103 4429 4552 4398 4824 Net Earned Premium 385 462 627 869 1167 1431 1482 1691 2248 2824 3050 3
Slide 38: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Mar-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 C Govt Sec 1303 1623 1765 2300 2969 2623 20.5% 21.3% 22.2% 27.2% 33.4% 28.2% S Govt Sec 805 1436 1955 2263 2729 3693 12.7% 18.9% 24.6% 26.7% 30.7% 39.8% Housing sector 1040
Slide 39: Investments – Provisions for Stressed Assets (Rs In Crs)
Investments – Provisions for Stressed Assets (Rs In Crs) Gross % of Provisions Particulars Write off Net Exposure Provision Exposure (including Write off) As at March 2019 167 22 145 15 22% As at March 2020 495 109 386 211 65% 39
Slide 40: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–40907638 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 40
Slide 41: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 42: Thank You
Financial Holdings Thank You ake murugappa
Cholamandalam Financial Holdings — Investor Presentation (March 2020) on 6ix