Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q1 FY2015 Earnings Presentation
38 slides from Religare Enterprises's earnings presentation, Aug 4, 2014
Slide 1: Religare Enterprises Limited Q1 FY15 Results
Religare Enterprises Limited Q1 FY15 Results August 4, 2014
Slide 2: Religare Enterprises Overview
Religare Enterprises Overview 1
Slide 3: REL Overview
REL Overview Religare is a Core Investment Company with subsidiaries operating across Financial Services verticals Business Overview • Religare Enterprises Limited is a Core Investment Company*, with operating subsidiaries across financial services verticals in India and in select verticals overseas
Slide 4: Portfolio Functions Overview
Portfolio Functions Overview REL’s primary objective is to ensure that its portfolio companies create equity value REL Structure and Functions • Religare Enterprises Limited (REL) is a Core Investment Company managed by a set of professionals and supervised by an independent Board • The businesses a
Slide 5: Growth in Portfolio
Growth in Portfolio REL has consistently grown its portfolio of businesses by investing in adjacencies organically and inorganically IFC investment in REL: ₹4.05 bn. PE Investments in RFL – Jacob Ballas: ₹2 bn. and Avigo: ₹1.5 bn. Invesco inducted as strategic partner in RAMC ESOP Scheme: Management
Slide 6: Consolidated Performance
Consolidated Performance $8 RELIGARE Values that bind
Slide 7: Key financial indicators – Q1 FY15
Key financial indicators – Q1 FY15 Revenue up 14% YOY Lending continues to dominate revenue mix (₹ mn) RELConsolidated ConsolidatedRevenue Revenue REL 11% 12% RSL+RCL+RCTL RFL 55% 55% 8,935 9,406 9,144 7,986 8,390 RGAM 15% 17% ARLI RHICL 3% 11% 4% 5% 8% Others 4% Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 F
Slide 8: Consolidated Income Statement – Q1 FY15
Consolidated Income Statement – Q1 FY15 QOQ Change YOY Change (₹ mn) Q1FY15 Q4 FY14 (%) Q1 FY14 (%) Total Income 9,144 9,406 -3% 7,986 14% Personnel Expenses 1,806 1,545 17% 1,635 10% Operating and Admin Expenses 2,723 3,075 -11% 2,275 20% Interest and Finance Charges 3,983 3,908 2% 3,919 2% Depreci
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at June 30, 2014 As at March 31, 2014 Owners’ Funds 36,645 31,877 Minority Interest 2,091 2,255 Non-Current Liabilities 92,890 89,013 Current Liabilities 85,267 88,107 Total Liabilities 216,894 211,252 Non-Current Assets Fixed Assets 19,845 19,927 Non-Current Inv
Slide 10: Performance of Portfolio Companies
Performance of Portfolio Companies 9
Slide 11: Lending
Lending Performance Review Net worth of Business ₹23.19 bn. Highlights Lending book of ₹111.2 bn. Religare Finvest 55% of REL’s consolidated Limited revenue (as of/q.e. 30-Jun-2014) One of India’s largest Strategic Non-Banking Improve ROE Priorities Financial Companies, Continuous focusing on the SM
Slide 12: Lending
Lending Calibrated growth of SME lending book Calibrated growth of SME lending book Consistent improvement in NIM (₹ bn) SME Working Capital SME Loan Against Property* Capital Market Lending NIM** Opex/ ANR SME CE/CV Finance 111.2 4.66% 4.70% 4.72% 97.6 99.1 102.8 9.1 4.21% 96.4 3.3 3.98% 9.3 8.9 8.
Slide 13: Lending – Financial Performance
Lending Financial Performance RFL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Total Income 4,986 5,215 -4% 4,876 2% Operating and Administrative Expenses 726 934 -22% 736 -1% Personnel Expenses 272 249 9% 273 0% Interest and Finance Charges 3,126 2,985 5% 3,27
Slide 14: Retail Broking
Retail Broking Performance Review Market share of Business 1.7% in equities Highlights and 3.2% in Religare Securities commodities Limited 12% of REL’s Religare Commodities consolidated Limited revenue (q.e. 30-Jun-2014) Religare Comtrade Limited Increase Strategic Distribution A formidable retail P
Slide 15: Retail Broking
Retail Broking Enhancing capabilities to strengthen client proposition Improving sentiment reflected in equity market volumes Market share improved in equities and maintained in commodities QOQ (ADTO# - ₹ bn) Commodities - Futures Equities - Options (%) Market Share - Equities * Market Share - Commo
Slide 16: Retail Broking – Financial Performance
Retail Broking Financial Performance RSL, RCL & RCTL Combined Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Total Income 1,060 1,043 2% 917 16% Operating and Administrative Expenses 534 545 -2% 471 13% Personnel Expenses 284 249 14% 289 -2% Interest and Finance
Slide 17: Capital Markets
Capital Markets Performance Review Business India IE cash market Highlights share of 1.5% Empanelled with Religare Capital 425 clients globally Markets Limited (as of/q.e. 30-Jun-2014) Asia-focussed Strategic Institutional Equities Priorities Increase Market and Investment Share Banking platform Att
Slide 18: Capital Markets
Capital Markets Creating a sustainable platform Client empanelment Business update No. of Institutional Empanelments* Backed by recovery in investor sentiment during the quarter, institutional equities business in India performance was strong resulting in operating break- even in May 624 636 475 4
Slide 19: Wealth Management
Wealth Management Performance Review Business AUM of Highlights ₹31.8 bn. Customer base of Religare Wealth over 4,600 Management Limited (as of 30-Jun-2014) Strategic An open architecture Increase Yield on Priorities platform targeting AUM growing affluence Increase Annuity Income 18
Slide 20: Wealth Management
Wealth Management Active advisory calls help clients net significant gains in portfolio values Client Base AUM (₹ bn) No. of Clients Total AUM 31.8 4,772 4,746 4,728 4,678 4,619 28.9 29.6 30.1 27.4 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 30-Jun-13 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 Re
Slide 21: Wealth Management – Financial Performance
Wealth Management Financial Performance RWM Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Total Income 50 53 -7% 68 -27% Operating and Administrative Expenses 16 26 -41% 22 -28% Personnel Expenses 49 52 -7% 60 -19% Interest and Finance Charges - - - - - Depreci
Slide 22: Asset Management
Asset Management Performance Review Business Highlights Q1FY15 Average AUM of ₹161 Religare Invesco Asset bn. Management Co. Pvt. Ltd. Strategic Entering the next phase Priorities of growth Profitable AUM Growth 21
Slide 23: Asset Management
Asset Management Entering the next phase of growth with Invesco’s induction as JV partner Industry-wide average AUM Religare Invesco mutual fund AUM grew 11% QoQ (₹ bn) Avg. Industry AUM (₹ bn) Religare - Average AUM 9,051 9,872 161 8,467 8,083 8,765 138 137 145 125 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY1
Slide 24: Asset Management – Financial Performance
Asset Management Financial Performance RIAMC Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Total Income 190 192 -1% 251 -24% Operating and Administrative Expenses 94 148 -36% 142 -33% Personnel Expenses 115 53 116% 191 -40% Interest and Finance Charges - - - -
Slide 25: Global Asset Management
Global Asset Management Performance Review Business Highlights AUM of $16.8 bn. Religare Global Asset (as of 30-Jun-2014) Management Strategic Building a multi- AUM Growth in Priorities boutique Alternative existing affiliates Asset Manager Launch of organic affiliates 24
Slide 26: Global Asset Management – Financial Performance
Global Asset Management Financial Performance RGAM Inc. Abridged Consolidated Income Statement QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Total Income 1,552 1,401 11% 1,221 27% Operating and Administrative Expenses 174 174 0% 194 -10% Personnel Expenses 699 658 6% 582 20% Interest and
Slide 27: Health Insurance
Health Insurance Performance Review Business GWP of Highlights ₹533.4 mn. in Q1FY15 Religare Health 3,610 hospitals Insurance Co. Limited in provider network (as of 30-Jun-2014) Strategic Positioned to capture Priorities significant Group Grow GWP with synergies efficient use of Capital 26
Slide 28: Health Insurance
Health Insurance Rapidly achieving scale Gross Written Premium Business Update (₹ mn) GWP Gross Written Premium (GWP) of ₹533 mn. in Q1FY15 Total Paid-up Share Capital at ₹2.5 bn.; solvency 514 533 position at 156% 422 320 268 Pan-India coverage through 43 offices and 1,100+ employees Q1FY14 Q
Slide 29: Health Insurance – Financial Performance
Health Insurance Financial Performance RHICL Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Gross Written Premium 533 422 27% 514 4% Net Written Premium 487 298 63% 471 3% Net Earned Premium 295 200 48% 212 39% Net Claims Incurred 196 69 186% 202 -3% Net Commiss
Slide 30: Life Insurance
Life Insurance Performance Review Business Approx. 336,000 Highlights lives covered AEGON Religare Life ₹5.8 bn. capital invested by REL Insurance Co. Limited (as of 30-Jun-2014) Efficient use of Strategic Capital Pioneer in Online Priorities Achieve Distribution Breakeven Generate Equity Value abov
Slide 31: Life Insurance
Life Insurance Acknowledged leader in use of technology Steadily growing customer base Premium Income split (000s) No. of Customers (₹ mn.) Single Renewal First year premium 1,922 6 328 336 1,013 1,011 1,284 279 290 301 12 3 694 575 666 675 1 9 425 487 632 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 335
Slide 32: Life Insurance – Financial Performance
Life Insurance Financial Performance ARLI Abridged Income Statement* YOY QOQ Change Change (₹ mn) Q1FY15 Q4FY14 (%) Q1FY14 (%) Premiums Earned (Net) 632 1,853 -66% 528 20% Investment Income and Other Income 1,111 532 109% 352 216% Total Income 1,743 2,385 -27% 880 98% Commission 28 117 -76% 14 100%
Slide 33: Appendix: Portfolio Companies’ Balance Sheets
Appendix: Portfolio Companies’ Balance Sheets 32
Slide 34: Portfolio Companies’ Balance Sheets (1/4)
Portfolio Companies’ Balance Sheets (1/4) RFL Abridged Balance Sheet RSL, RCL & RCTL Combined Abridged Balance Sheet (₹ mn) As at June 30, 2014 (₹ mn) As at June 30, 2014 Owners’ Funds 23,186 Owners’ Funds 4,941 Share Capital 2,256 Share Capital 345 Reserves and Surplus 20,930 Reserves and Surplus 4
Slide 35: Portfolio Companies’ Balance Sheets (2/4)
Portfolio Companies’ Balance Sheets (2/4) RWM Abridged Balance Sheet* RIAMC Abridged Balance Sheet* (₹ mn) As at June 30, 2014 (₹ mn) As at June 30, 2014 Owners’ Funds 75 Owners’ Funds 592 Share Capital 1,270 Share Capital 765 Reserves and Surplus (1,195) Reserves and Surplus (173) Non - Current Lia
Slide 36: Portfolio Companies’ Balance Sheets (3/4)
Portfolio Companies’ Balance Sheets (3/4) RGAM Inc. Abridged Consolidated Balance Sheet RHICL Abridged Balance Sheet* (₹ mn) As at June 30, 2014 (₹ mn) As at June 30, 2014 Owners’ Funds 11,007 Owners’ Funds 1,252 Share Capital 0 Share Capital 2,500 Reserves and Surplus 11,007 Reserves and Surplus (1
Slide 37: Portfolio Companies’ Balance Sheets (4/4)
Portfolio Companies’ Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at June 30, 2014 Owners’ Funds 1,508 Share Capital 13,075 Reserves and Surplus (11,567) Policyholders' Funds (including funds for discontinued policies and future 13,284 appropriation) Current Liabilities 900 Total Liab
Slide 38: Religare Enterprises Limited
Religare Enterprises Limited D3, P3B, District Centre, Saket, New Delhi 110017 Email: investorrelations@religare.com RBI Disclaimer: (a) Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctnes
Religare Enterprises — Q1 FY2015 Earnings Presentation on 6ix