Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — FY2018 Earnings Presentation
41 slides from Aditya Birla Capital's earnings presentation, May 8, 2018
Slide 1: Investor Presentation: Financial Results FY17-18
Investor Presentation FINANCIAL RESULTS FY17-18 MUMBAI 8th May 2018 A leading Financial Services Conglomerate Aditya Birla Capital Limited
Slide 2: Table of Contents
Table of Contents 1 | Overview Pg. 3 - 6 2 | Business-wise Performance Pg. 7 - 35 3 | Consolidated Financials & Other Annexures Pg. 36 - 41 NOTE 1: The financials of Aditya Birla Capital are consolidated financials prepared as per Indian GAAP unless otherwise specified NOTE 2: The financial figures
Slide 3: Organisation Structure
Organisation Structure Aditya Birla Capital LTD Listed NBFC ADITYA BIRLA FINANCE LTD 100% 75% ADITYA BIRLA MONEY LTD Broking Housing Finance ADITYA BIRLA HOUSING FINANCE LTD 100% 50.01% ADITYA BIRLA INSURANCE BROKERS LTD 2 Insurance Advisory Life Insurance ADITYA BIRLA SUN LIFE INSURANCE 51% COMPANY
Slide 4: FY18: A Year of Milestones
FY18: A Year of Milestones LISTED Aditya Birla Capital No. 3 Mutual Fund4 Launched UNIFIED Brand Net VNB Positive in Life Insurance Business Crossed Rs 1,000 Cr Annual PAT1 HFC Achieved Full Year PROFITABILITY 1st FULL YEAR for Health Insurance with Manage over Rs 3,00,000 Cr in AUM2
Slide 5: Growth and Scale Across the Platform
Growth and Scale Across the Platform A Trusted Brand That Serves All Financial Needs.. ..with a Platform of Size and Scale Growth FY15 FY18 PROTECTING FINANCING Pan-India Life Insurance Ind FYP: 1.5x NBFC Lending Book: 2.5x presence with 1,600+ 1,90,000+ Health Housing Insurance* GWP: ~Rs 250 cr F
Slide 6: With Strong Financial Performance
With Strong Financial Performance Figures in Rs Crore 32% 24% +9.8% 21% 44% 51,378 305,295 4.3% 13,428 824 38,839 246,277 11,071 573 -5.5% FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 Lending Book1 AUM2 Net VNB Margin % Revenue3 Profit After Tax3 1 Includes AUM of Life Insurance, Health Insuran
Slide 7: Aditya Birla Finance Limited
Aditya Birla Finance Limited 7
Slide 8: A Well Diversified Portfolio
A Well Diversified Portfolio A multi-product offering catering to a range of customers’ needs Lending Book grew 25% y-o-y Mid Corporate Previous Year Lending Book: Rs 34,703 cr 17% Structured Finance 1% TL / WCDL 9% Retail Digital & Unsecured 11% Project Loan 1% 5% Cons Fin 6% LAP Net Interest Incom
Slide 9: Continuing to Deliver Strong Performance
Continuing to Deliver Strong Performance Figures in Rs Crore Strong NII growth Maintained Asset Quality while moving from 120 to 90 DPD 4.39% 4.38% NIM % Gross NPA Net NPA 0.92% 1,715 0.20% 0.65% 1,255 0.47% 0.17% 0.21% NII FY'17 FY'18 FY'17 FY'18 120 DPD 90 DPD Note 1: GNPA of 0.20% on account of e
Slide 10: Diversified and Competitive Cost of Borrowing
Diversified and Competitive Cost of Borrowing Consistently Maintaining a Diversified Borrowing Mix Resulting in Competitive Cost of Funds Bank CP NCD Sub debt & Perpetual 8.60% 5% 5% 33% 30% 7.83% 26% 25% 36% 40% FY '1 7 FY '1 8 FY'17 FY'18 Maintaining optimum Leverage Ratio Maintaining Adequate Liq
Slide 11: Key Financials – Aditya Birla Finance Limited
Key Financials – Aditya Birla Finance Limited Figures in Rs Crore ∆ LY% Quarter 4 Full Year ∆ LY% FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 34,703 43,242 Lending book 34,703 43,242 25% 11.6% 11.1% Average yield1 11.8% 11.1% 7.1% 6.8% Interest cost / Avg. Loan
Slide 12: Key Initiatives
Key Initiatives 1 Geography • Increase penetration in Tier 2/3 cities, together constituting ~85% of SME revenue pool Expansion • Target to add 22 cities to reach 50 cities by July 2018 2 Unsecured • Investment over 2 years has started yielding results Retail • Business to scale up over next 2-3 yea
Slide 13: Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Limited 13
Slide 14: Strong Growth in Lending Book
Strong Growth in Lending Book Figures in Rs Crore Lending Book grew ~2x y-o-y Loan Book Growth Gross Disbursements Previous Year Lending Book: INR 4,136 cr 8,137 5,105 Reduction in Average HL Ticket Size 4,136 2,802 From 45 Lakhs to 27 Lakhs Steady Path to Profitability FY'17 FY'18 FY'17 FY'18 EBT I
Slide 15: Diversification Across Products & Geographies
Diversification Across Products & Geographies Portfolio Mix (%) Geographic Mix (%) 12% 5% 11% 36% 38% 32% 26% Affordable Housing West South Construction Finance 18% 19% North LAP East 56% 58% 31% 29% Home Loans 15% 14% FY'17 FY'18 FY'17 FY'18 • 51 branches current operational with 2700+ channel part
Slide 16: Turning Profitable in just 7 Quarters of Operation
Turning Profitable in just 7 Quarters of Operation Figures in Rs Crore Number of Customers Average Ticket Size (in Lakhs) Home Loan 45 27 19,074 Ticket Size 66 37 6,333 FY'17 FY'18 FY'17 FY'18 Net Interest Income (NII) & NIM %1 GNPA & NNPA % 3.2% 3.0% NIM % Gross NPA Net NPA 172 0.53% 0.43% 87 0.34%
Slide 17: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited Figures in Rs Crore ∆ LY% Quarter 4 Full Year ∆ LY% FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 4,136 8,137 Lending book 4,136 8,137 ~2x 10.7% 9.7% Average yield 10.7% 9.9% 7.3% 6.9% Interest cost / Avg. Loa
Slide 18: Key Initiatives
Key Initiatives 1 Branch • Target to add 33 new branches by March 2019, reaching a total of 84 branches Expansion 2 Affordable • Continue to scale up affordable housing to tap into Tier 2 – 4 cities Housing 3 Product Mix • Target to reach 60: 20: 20 product mix in Home Loan: LAP: Construction Financ
Slide 19: Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited 19
Slide 20: Steadily Gained Market Share to Become No.3 Mutual Fund in India
Steadily Gained Market Share to Become No.3 Mutual Fund in India Figures in Rs Crore Market Leadership with No.3 Rank 2,67,739 AAUM market Share of 10.75% 2,10,742 20,209 1,52,427 15,693 Equity AAUM grew 73% y-o-y Growth in 161,079 15,924 AAUM 145,135 Making equity composition at 35% 104,612 86,450
Slide 21: Continued Focus on Retail Expansion
Continued Focus on Retail Expansion 6.0 Pan-India presence across 226 locations Significant 3.9 Addition of 19 branches in FY18 Growth in Investor Folio (Mn) Mar-17 Mar'18 B-15 AUM crosses Rs 40k crore mark 1,200 B-15 AUM grew y-o-y by 49% vis-à-vis 38% industry growth. Market share reaches 9.4% Dou
Slide 22: Balanced Distribution Network
Balanced Distribution Network Overall AUM Sourcing Mix (%) Equity AUM Sourcing Mix (%) IFA Bank National Distributor Direct IFA Bank National Distributor Direct 17% 19% 42% 43% 24% 22% 23% 19% 19% 17% 13% 13% 40% 42% 22% 25% FY'17 FY'18 FY'17 FY'18 Balanced Sourcing Mix IFA has Greater Share in Equi
Slide 23: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited Figures in Rs Crore ∆ LY% Quarter 4 Full Year ∆ LY% FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 1,95,049 2,47,529 Domestic Avg. AUM* 1,95,049 2,47,529 27% 49,914 86,450 Domestic Equity Avg. AUM* 49,914 86,450 7
Slide 24: Key Initiatives
Key Initiatives 1 Customer & Distributor • Focusing on distributor and customer expansion Expansion 2 Geographical • Market penetration through branch expansion Expansion 3 Customer • Increasing customer engagement activities to make service a differentiator Services Aditya Birla Capital Limited 24
Slide 25: Aditya Birla Sun Life Insurance Limited
Aditya Birla Sun Life Insurance Limited 25
Slide 26: Delivering Value Driven Growth
Delivering Value Driven Growth Figures in Rs Crore Individual FYP grew by 20% y-o-y 27% Previous year: Rs 960 crore Growth in Positive Net VNB Margin at 4.3% Indiv. FYP 960 1,152 Key Drivers: 711 - Good volume growth, - Expense management, FY'16 FY'17 FY'18 - Increasing Protection in Product mix, an
Slide 27: Balanced Product and Distribution mix
Balanced Product and Distribution mix Increasing Share of Protection in Product Mix Non-agency Contribution Increasing Significantly 23% 32% 2% 5% 7% 8% Protection 10% Direct 32% 6% 19% 38% Non-Par Banca 4% Brokers Par Agent 24% 29% ULIP 77% 68% 39% 30% FY'17 FY'18 FY'17 FY'18 • Balanced product mix
Slide 28: Improvement in Persistency and Strong Expense Management
Improvement in Persistency and Strong Expense Management Figures in Rs Crore Consistent Increase in 13th & 25th month persistency Coupled with Better Expense Management (Opex Ratio) 71.4% 75.2% Without Commission With Commission 60.2% 64.4% 20.7% 20.1% 16.3% 15.6% 13th month 25th month FY'17 FY'18 F
Slide 29: Key Financials – Aditya Birla Sun Life Insurance Limited
Key Financials – Aditya Birla Sun Life Insurance Limited Figures in Rs Crore ∆ LY% Quarter 4 Full Year ∆ LY% FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 20% 411 491 Individual First year Premium 960 1,152 20% 422 473 Group First year Premium 1,574 1,511 1,065 1
Slide 30: Key Initiatives
Key Initiatives 1 Protection • Grow protection product segment in overall mix Mix • Penetrate through individual and group channels 2 Banca • Leverage existing relationships and acquire new partners Partnerships • Grow HDFC Bank partnership 3 Value • Maintain product mix, persistency and expenses to
Slide 31: Aditya Birla Health Insurance Limited
Aditya Birla Health Insurance Limited 31
Slide 32: Strong 1st full year of Performance
Strong 1st full year of Performance Figures in Rs Crore GWP at nearly ~ Rs 250 crore 4.5x 243 4.5x growth in GWP over FY17 Strong GWP More than 1 million lives covered Growth 54 71 driven by 21 Retail Significantly scaled distribution channels FY17 FY18 Q4 FY17 Q4 FY18 And a network of 4200+ Hospita
Slide 33: Driving Value through Diversification
Driving Value through Diversification Channel mix - Increasing contribution from Banca Geographical diversification (% contribution of Non-Metro) 30% 46% 48% 46% 42% Agency 24% 20% 13% 15% 14% 28% 32% Banca 41% 37% 26% 26% Others Q1 FY'18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'18 Q2 FY'18 Q3 FY'18 Q4 FY'1
Slide 34: Other Financial Services businesses
Other Financial Services businesses
Slide 35: Other Financial Services Businesses
Other Financial Services Businesses Figures in Rs Crore ∆ LY% Quarter 4 Full Year ∆ LY% FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 2.2x 68 152 Aggregate Revenue 280 448 1.6x (8) (4) Aggregate Earnings before tax (9) 5 Profitable • Premium placement rose y-o-y
Slide 36: Annexure: Consolidated Financials
Annexure Consolidated Financials
Slide 37: Consolidated Profit & Loss
Consolidated Profit & Loss Figures in Rs Crore Quarter 4 Full Year FY 16-17 FY 16-17 FY 17-18 Key Performance Parameters FY 16-17 FY 17-18 Like to Like (PY) 1 (PY) (CY) (PY) (CY) FY 16-17 1 Like to Like Reported Reported (PY) 3,353 2,161 4,203 Revenue 5,823 13,428 11,071 21% 860 850 1,260 EBITDA 3,4
Slide 38: Segment Revenue
Segment Revenue Figures in Rs Crore Quarter 4 Full Year FY 16-17 FY 17-18 FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 788 2,236 Life Insurance 788 6,375 913 1,204 NBFC 3,425 4,480 96 192 Housing 315 615 275 350 Asset Management 968 1,249 26 103 General Insurance Broking 121 261 34 44 Broking 131 162 23 71
Slide 39: Segment EBT
Segment EBT Figures in Rs Crore Quarter 4 Full Year FY 16-17 FY 17-18 FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 40 45 Life Insurance 40 166 197 287 NBFC 837 1,114 (2) 9 Housing (16) 24 85 138 Asset Management 337 493 3 3 General Insurance Broking 39 40 4 4 Broking 8 13 (54) (57) Health Insurance (89) (1
Slide 40: Aditya Birla Capital Limited
Aditya Birla Capital Limited CIN: L67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujarat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013 Website: www.adityabirlacapital.com 40
Slide 41: Glossary
Glossary CY – Current Year NIM – Net Interest Margin FY – Financial Year (April-March) DPD – Days past due PY – Corresponding period in Previous Year CAB – Corporate Agents and Brokers PQ – Previous Quarter AAUM – Quarterly Average Assets under Management Q1– April-June FYP – Fir