Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q2 FY17 Earnings Presentation
31 slides from Bajaj Finserv's earnings presentation, Oct 27, 2016
Slide 1: Bajaj Finserv exchange filing letter
BAJAJ FINSERV 27 October 2016 To To The Corporate Relations Department. National Stock Exchange of india Lid The Bombay Stock Exchange Exchange Plaza, 5'" Floor 1°' Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Tower Bandra-Kurla Complex, Dalal Street, Fort, Mumbai 400 001. Band
Slide 2: Investor Presentation – Q2 FY17
Bajaj Finserv Limited Investor Presentation – Q2 FY17* * Financial year 2016‐17
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 4: Bajaj Finserv – A diversified financial services group
Bajaj Finserv – A diversified financial services group 57.28%* 74% 74% Bajaj Finance Bajaj Allianz Bajaj Allianz Life Limited General Insurance Insurance • Diversified NBFC present in • 2nd largest private General insurer • 4th largest private player in India in FY consumer finance, SME, in India as
Slide 5: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights All Figures in Rs Million Performance Highlights of Q2 FY 2017 over Q2 FY2016 CY 69118 12326 5758 27534 33.3% 37.3% 30.5% 4.1% PY 51852 8978 4411 26457 Gross Revenue Profit before Tax PAT Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) • Bajaj
Slide 6: Consolidated profit components
Consolidated profit components All Figures in Rs Million Consolidated profit components for Q2 FY2017 Intercompany adjustments Bajaj Finserv- Bajaj Allianz Standalone -216 Financial Distributors 407 Life 5758 Insurance 2 Bajaj Finserv General - Insurance 1494 Consolidated Bajaj Finance 1735 2336 Con
Slide 7: H1 Highlights
H1 Highlights All Figures in Rs Million Group Company Highlights BAJAJ FINSERV H1 FY17 H1 FY16 Growth BALIC H1 FY17 H1 FY16 Growth Gross Revenue 125,819 100,122 26% GWP 24,508 22,535 9% Net worth (Cons) 144,988 124,721 16% Total Investments 468,802 429,545 9% PAT 11,133 9,080 23% PAT 4,456 4,566 ‐2%
Slide 8: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 7
Slide 9: General Insurance – Overview
General Insurance – Overview STRATEGY Grow faster than market in chosen segments. Presence across retail and commercial lines, with a focus on retail business Emphasis on profitability through superior underwriting, & strong cash flow generation, resulting in superior ROE Deliver industry le
Slide 10: General Insurance – Overview: Differentiators
General Insurance – Overview DIFFERENTIATORS Industry leading combined ratios over the last Underwriting several years with superior ROE. Strength Highest PAT in private sector in FY16 Trend-setter in the industry for cash-less claims. First to insource health insurance administration. Sustain
Slide 11: General Insurance – Overview: Combined Ratio and ROE
General Insurance – Overview Combined Ratio (incl Motor Pool losses) 120.0% 113.5% 110.0% 104.8% 105.0% 102.2% 101.0% 101.5% 99.5% 98.1% 99.3% 100.0% 96.7% 90.0% Industry leading combined ratios 80.0% 70.0% on a sustained basis 60.0% 50.0% 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 BAGIC Top 5 Privat
Slide 12: Premium update
Premium update Diversified distribution mix BAGIC Premium Trend 59.01 70.00 53.01 16% 18% 45.84 45.72 60.00 21% 31% 41.09 40.09 37.61 37.06 36.76 50.00 32.03 Rs. Billion 28.22 40% 40% 26.96 36% 24.88 40.00 21.86 21.79 35% 15.00 30.00 13.02 11.35 14% 13% 12% 20.00 7% 7% 7% 12% 5% 10.00 23% 24% 23% 18
Slide 13: Business mix and AUM growth
Business mix and AUM growth AUM(cash and investments) ‐ Rs Billion Business Mix (as of end of period) 120 100% 103.6 11% 9% 9% 9% 10% 9% 7% 92.1 8% 6% 11% 100 20% 19% 18% 78.6 16% 16% 15% 34% 80 69.7 6% 8% 9% 6% 5% 5% 6% 6% 8% 58.4 6% 6% 6% 10% 50% 60 47.6 8% 5% 40 58% 59% 59% 55% 56% 51% 36% 20 0%
Slide 14: Capital efficiency and PAT trend
Capital efficiency and PAT trend All Figures in Rs Million BAGIC ‐ Capital Invested ‐ Networth PAT 6,000 5,623 5,642 36000 31,531 32000 5,250 27,897 28000 25,133 4,500 4,090 22,255 3,659 Rs. Million 24000 3,750 Rs. Million 2,951 2,879 20000 16,643 3,000 2,344 16000 12,553 9,587 2,250 12000 1,406 2,7
Slide 15: Bajaj Allianz General – Q2 highlights
Bajaj Allianz General – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY2017 over Q2 FY2016 CY 21,788 12,405 2,344 7.7% 45% 17% 67% PY 15,002 10,615 1,406 5.8% Gross Written Net Earned Premium Profit After Tax ROE Premium (Not Annualized) CY 94.3% 71.6% Solvency Ratio was 253%
Slide 16: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 15
Slide 17: Life Insurance – Overview
Life Insurance ‐ Overview STRATEGY Grow regular premium Diversified distribution channels with an emphasis on individual agents Maintain a sustainable product mix Maintain leadership amongst private companies in the financial inclusion segment 16
Slide 18: Life Insurance – Overview: Differentiators
Life Insurance ‐ Overview DIFFERENTIATORS Deep pan India distribution presence Large Proprietary Focus on improving efficiency and productivity of Agency Force agency channel BALIC leads the private sector, with about 40% Financial Inclusion share of lives covered in group schemes (FY16) Wel
Slide 19: New business update
New business update All Figures in Rs Million Individual Rated NB Group NB 9,000 25,000 7,755 8,000 7,172 19,938 7,000 20,000 6,000 16,451 5,000 15,000 4,000 3,382 10,014 10,000 8,144 3,000 2,257 2,117 5,569 2,000 1,284 5,000 2,759 1,000 ‐ ‐ 2014‐15 2015‐16 H1 FY 2016 H1 FY 2017 Q2 FY 2016 Q2 FY 201
Slide 20: Diversified product mix
Diversified product mix Individual Rated NB Premium ‐ Product Mix Individual Rated NB Premium ‐ Product Mix 80% 66% 63% 100% 60% 51% 49% 40% 40% 51% 40% 31% 50% 45% 42% 42% 28% 20% 11% 13% 9% 8% 6% 6% 0% 0% Individual ‐ Par Individual ‐ Non Par Individual ‐ Unit Linked Individual ‐ Par Individual ‐
Slide 21: Assets Under Management are significant
Assets Under Management are significant AUM (Rs Billion) AUM (Rs Billion) (as of end of period) (as of end of period) 500 469 350 436 441 300 Unit Linked Other than Unit Linked 450 394 380 388 300 266 400 245 249 350 250 216 219 213 203 300 192 200 175 250 150 135 200 94 150 100 100 50 50 0 0 2011‐1
Slide 22: Capital efficiency and PAT
Capital efficiency and PAT All Figures in Rs Million Capital Invested ‐ Networth 90,000 80,771 80,771 80,000 76,315 72,091 72,091 67,490 70,000 58,708 60,000 BALIC’s Networth is 6.7 times 48,441 50,000 the Capital infused. 40,000 35,606 No Capital infused after FY08 12,107 12,107 12,107 12,107 12,10
Slide 23: Bajaj Allianz Life – Q2 highlights
Bajaj Allianz Life – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY2017 over Q2 FY2016 CY 2,117 5,569 6,650 14,467 65% 202% ‐7% 23% PY 1,284 2,759 7,125 11,719 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 2,019 784% 468,802 ‐7% 9% PY 2,161 Solvency R
Slide 24: Bajaj Finance Limited
Bajaj Finance Limited # 23 # Standalone
Slide 25: Bajaj Finance – Overview
Bajaj Finance ‐ Overview Overview A non bank with strategy, structure & support model of a bank Diversified financial services strategy envisages an optimal mix of risk and profit to deliver a sustainable business model The business construct is to deliver a sustainable and superior ROA & ROE
Slide 26: Bajaj Finance – Overview: Differentiators
Bajaj Finance – Overview DIFFERENTIATORS Strong brand equity of Bajaj Focus on mass affluent and group above customers Strong focus on cross-sell covering assets, insurance & Diversified lending strategy wealth products Deep investment in Highly agile and innovative technology and analytics 25
Slide 27: Bajaj Finance – Business / Product Launch Journey
Bajaj Finance – Business / Product Launch Journey AUM mix: Consumer (45%), SME (39%), Commercial (12%), Rural (4%) as of Q2FY17 26
Slide 28: Bajaj Finance has clocked healthy growth in revenues
Bajaj Finance has clocked healthy growth in revenues All Figures in Rs Million Book Size 600,000 Total Income 499,811 80,000 73,835 500,000 427,558 365,154 70,000 400,000 60,000 54,182 311,994 50,000 300,000 40,744 229,710 40,000 31,097 200,000 167,436 30,000 21,719 23,660 122,831 17,006 20,000 100,
Slide 29: Quality of assets is good, and operating costs remain under control
Quality of assets is good, and operating costs remain under control All Figures in Rs Million Loss Provision and Net NPA% Operating expenses as a % of NII 6000 2.00% 5,429 5000 60% 47% 45% 46% 44% 44% 44% 4000 3,846 45% 50% 40% 3000 2,588 30% 2000 1,818 1,691 1,544 0.45% 1,368 20% 0.28% 0.28% 1000 0
Slide 30: Bajaj Finance – Q2 highlights
Bajaj Finance – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY2017 over Q2 FY2016 CY 499,811 23,660 4,078 37% 39% 46% PY 365,154 17,006 2,794 Book Size Total Income Profit After Tax CY 0.8% 5.1% • Borrowing mix is not excessively dependent on banks (38:62 mix between banks a
Slide 31: Thank You
BAJAJ FINSERV Thank You 30