Pb Fintech Limited · NSE:POLICYBZR
Pb Fintech — Q3 FY22 Earnings Presentation
51 slides from Pb Fintech's earnings presentation, Feb 7, 2022
Slide 1: Outcome of Board Meeting letter to exchanges
pb \Eintech/ Date: February 07, 2022 To National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5" Floor, Department of Corporate Services/ Listing Plot No. C/I, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai — 400051 Mumbai ~ 400001
Slide 2: PB Fintech clocks a strong 73% revenue growth; maintains margins at 40%
PB Fintech Limited, Press Release 7th February, 2022 Performance Review: Quarter ended December 31, 2021 We are pleased to announce our Quarterly performance results for the first time after listing publicly _______________________________ PB Fintech clocks a strong 73% revenue growth; maintains exi
Slide 3: Management commentary and About PB Fintech
Commenting on the QIII FY22 results, Yashish Dahiya, Chairman and Group CEO of PB Fintech, said “Scale is critical to the success of any marketplace we are currently at an ARR of over ₹ 8,000 Cr which is a growth of 60% YoY, we are now growing at scale. Margins in our existing businesses were mainta
Slide 4: Update Presentation for Quarter ended December 2021
Update Presentation for Quarter ended December 2021
Slide 5: Insurance Premium is 45x in 8 Years, Credit Disbursal is 46x in 7 Years
Insurance Premium is 45x in 8 Years Credit Disbursal is 46x in 7 Years Insurance Premium Over ₹ 8,100 Cr Disbursals Over ₹ 8,400 Cr (₹ Cr) Current ARR* (₹ Cr) Current ARR* 45x in 8 years 46x in 7 years 6,800 6,550 6,646 5.3x Growth in 4 years COVID 1,286 impact 143 151 FY15 FY16 FY17 FY18 FY19 FY20
Slide 6: Key Performance Indicators
Key Performance Indicators Strong Insurance Premium & Credit Disbursal Growth; Continuous Improvement in Advisor Productivity ARR ₹ Cr ^ Q3 FY21 Q3 FY22 YoY 9M FY21 9M FY22 YoY Jan-22 Jan-22 Insurance Premium 1,067 1,796 68% 3,478 4,812 38% 676 8,108 New insurance premium per advisor per month* (Lac
Slide 7: Financials – Q3
Financials – Q3 73% Revenue Growth, Maintaining Contribution, Investing in Initiatives & Brand Q3 FY21 Q3 FY22 ₹ Crores Total Existing New initiatives Total Existing New initiatives Revenue 212 209 3 367 317 50 Contribution (non-GAAP)# 86 87 (0) 85 126 (41) Contribution % 41% 41% -11% 23% 40% -82% A
Slide 8: Financials – 9M
Financials – 9M 44% Revenue Growth, Maintaining Contribution, Investing in Initiatives & Brand 9M FY21 9M FY22 ₹ Crores Total Existing New initiatives Total Existing New initiatives Revenue 616 608 8 885 814 71 Contribution (non-GAAP)# 221 220 0 234 291 (58) Contribution % 36% 36% 3% 26% 36% -82% Ad
Slide 9: Adjusted EBITDA to EBITDA walk
Adjusted EBITDA to EBITDA walk Upfronted ESOP Charges as per Ind-AS; Help Retain Talent ₹ Cr Q3 FY21 Q3 FY22 9M FY21 9M FY22 Adjusted EBITDA (non-GAAP) 2 (92) (65) (203) ESOP 24 226 26 432 IPO Cost 0 0 0 13 EBITDA (22) (318) (91) (647) ESOPs already accounted for in Prospectus for fully diluted calc
Slide 10: Renewal revenue at an annualized run rate of ₹210 Cr
Renewal revenue at an annualized run rate of ₹210 Cr Renewal Revenue Current Renewal Revenue = ₹ 210Cr^ Renewals = 90%+ margin FY18 FY19 FY20 FY21 FY22E Policybazaar Renewal Rev Paisabazaar Renewal Rev ^ : Based on ARR of Q3, Unaudited management accounts 7
Slide 11: Insurance & Credit Both Continue to Scale
Insurance & Credit Both Continue to Scale Improving Efficiency & Customer Experience Consistent focus on consumer education – to get inbound consumers Scale is key for a marketplace: we are at an annual run rate* of insurance premium of over ₹ 8,100 Cr growing at 50%+ YoY; lending / disbursals a
Slide 12: Increasing Depth and Breadth Across Insurance & Credit Value Chain
Increasing Depth and Breath Across Insurance & Credit Value Chain Existing businesses • Policybazaar • Paisabazaar New Segments / Markets • PB Partners – Tech platform for Independent agents • Corporate & SME Insurance • UAE Data & Convenience • AI initiatives for enhanced consumer experience • Docp
Slide 13: Two leading consumer destinations
Two leading consumer destinations Policybazaar Paisabazaar 56.4 mn 25.5 mn Registered Consumers(1) Consumers accessed their Credit Scores(4) Consumers who Consumers who 11.1 mn have purchased at least one insurance 2.5 mn have made at least one transaction on Transacting Consumers(2) policy through
Slide 14: Our philosophy on people & team
Our philosophy on people & team Cultural alignment & Operational freedom Tenure #Employees 5+ Years 615 7+ Years 237 10+ Years 53 11
Slide 15: policybazaar
policybazaar@
Slide 16: Policybazaar key metrics
90% Market share (online aggregators) 55% Unassisted transactions Motor – Four wheeler ₹ 4,755Cr 24.6mn Insurance premium Insurance Policies sold (FY21) (uptil Q3 FY21) 99% Unassisted transactions Motor – Two wheeler ₹ 1,796Cr Insurance premium (Q3 FY22) ₹ 9.6 Lacs Insurance premium per advisor per
Slide 17: Policybazaar is solving structural problems facing the insurance landscape in India
Policybazaar is solving the structural problems facing the insurance landscape in India and benefiting all stakeholders in the ecosystem Problems facing insurance Benefits to the insurer Benefits to the consumer industry Dependence on high Go-to digital insurance Consumer friendly user Low CAC cost
Slide 18: India continues to have one of the widest protection gaps
India continues to have one of the widest protection gaps; Health & Term Insurance is needed 65% of Healthcare spend is out of pocket 94% of income is not protected % Out of pocket spends Mortality protection gap (Total healthcare spends – Insurance coverage) (Protection required – Sum Insured) 37%
Slide 19: Policybazaar business model
Policybazaar business model Inbound consumers Consumer education through ↓ mass media & PR Direct traffic Direct declaration (vs consumer Pull (vs Push) Better conversion (Pull vs Push) intermediated) ↓ ↓ ↓ Lower Lapse rates, Increasingly efficient operations Sharp risk assessment, Higher Persistenc
Slide 20: Leveraging Data and Technology: Life Insurance
Leveraging Data and Technology: Life Insurance Preventing Early-Stage Fraud Payment & Proprietary PB Payment Graph Booking Check Device Fingerprinting Document verification at source with submitted KYC documents Face Person and Pre Issuance Video Call (PIVC) to check liveliness Matching Docu
Slide 21: Early Fraud Detection
Early Fraud Detection Using Face & Voice Biometrics Checking for impersonation by comparing the PIVC video (pre-issuance verification call) to previous calls Pre-Issuance Verification Call Biometric Match Report for Biometric Verification Insurer 18
Slide 22: Leveraging Data and Technology: Motor Insurance
Leveraging Data and Technology: Motor Insurance App-based Video Inspection for Policy Issuance and Claim Settlement Self-inspection video process for motor insurance - Converts manual process involving external surveyor into a simple self service flow - Makes consumer experience of policy issuance (
Slide 23: Leveraging Data and Technology: Automated Speech Recognition
Leveraging Data and Technology: Automated Speech Recognition (ASR) Health Insurance Renewal Intent & Consumer Word Cloud Generation Chat Email Determines Renewal Intent post each renewal call or visit Intent, context and ASR Sentiment (Speech-to-Text) Flags potential customer concerns (price, claims
Slide 24: paisabazaar
paisabazaar@®
Slide 25: Paisabazaar key metrics
~2.7 Cr ~10 Lacs monthly visits transactions ARR ~2.6 Cr Customers ~₹8,460 Cr have checked their Free Credit Score ~15 Lacs loan disbursals ARR1 from the platform* monthly enquiries (credit products) ~60 Partners across Banks, NBFCs & Fintechs Acquiring a customer every Customers from 3.9 Seconds 1,
Slide 26: India has one of the lowest credit penetration; credit market expected to grow
India continues to have one of the lowest credit penetration Credit Market expected to grow strongly Under penetration in India’s Consumer Lending Fast-growing unsecured consumer credit market Outstanding loan balance as a % of nominal GDP (CY2020) Loan disbursals1 (₹ Lac Crs) 16.6 79.2% 55.6% 8.2 1
Slide 27: Paisabazaar.com: Platform of Choice for India's Credit Needs
Paisabazaar.com: Platform of Choice for India’s Credit Needs End to end Largest Depth and Intelligence to independent breadth of help Assistance marketplace offerings consumers model Highest brand recall* 63 partnerships Industry 1st “Chance Assistance from across banks, Biggest bank to of Approval”
Slide 28: Economies of segmentation
Economies of segmentation Products that cater to consumers from super prime going all the way to Credit challenged 2014 2015 2016 2017 2018 2019 2020 2021 2022 25
Slide 29: We are driving credit score awareness in the country
We are driving credit score awareness in the country Deep analytics driving product innovation & monetization 2.6 Cr customers have become credit aware Driving deep Segmentation to innovate, fill need gap Strong repeat customer behaviour: 71% of the disbursals from existing customers *Int ernal Mana
Slide 30: Neo-lending: Building a strong product suite to cover segment gaps
Neo-lending : Building a strong product suite to cover segment gaps Brand Building 100% Ownership Annuity Rev stream Improved insight Increased brand salience E2E ownership = Superlative Leading to higher NPV Creates a virtuous across lifetime experience cycle of intelligence 3 Products live – acros
Slide 31: Covid has accelerated digitization in lending
Covid has accelerated digitization in lending Digital platforms likely to become even more natural choice for consumers 1.5x conversion rates & instant disbursal leading to better customer experience KYC Underwriting Repayment & verification Contracting • NACH eMandate • Central KYC Registry • Pre-a
Slide 32: Our Investments & New Initiatives
Our Investments & New Initiatives 29
Slide 33: Our Investment Philosophy
Our Investment Philosophy Seed stage or series A – Prefer “BUILD” over “BUY” Strengthen the existing businesses (steer clear of unrelated new business lines) Scale Higher Conversion rates Enhanced Consumer Engagement Product Innovation Customer service convenience Claims support Be
Slide 34: PB Partners: Market leader in 6 months via build vs buy
PB Partners Market leader in 6 months via build (v/s buy) A platform for independent sellers of Insurance and other financial products Enable seller to sell across Products and Suppliers via an app Tech based platform for Research, Issuance, and Customer Management Market leader with ₹40 Cr
Slide 35: PB Corporate: Delivering A New Age Corporate/SME Insurance Experience
PB Corporate: Delivering A New Age Corporate/SME Insurance Experience India’s Fastest Growing Corporate Insurance Business Trusted by India’s best (with a 92% retention on large clients) ₹ Cr 9M FY22 Growth % Premium (₹ Cr) 276 308% Employees Insured (mn) 1.1 530% Comprehensive product offering onli
Slide 36: Visit Health: Gamified Digital Health Services Provider
Visit Health: Gamified Digital Health Services Provider 9M FY22 Revenue Growth 100% PBT Margin 7.5% Health & Wellness Services for Corporates (Online/Offline Doctor Consultations, 1 Annual Health Checkup, Discounts on Labs & Pharmacy) 2 Digital OPD Membership Plans for Consumers 3 Digital Health Ser
Slide 37: Docprime: Digital Health locker integrated with NDHM
Docprime: Digital Health locker integrated with NDHM (B2B service business only) A single mobile window to access and store customer and family heath data Hospitals Clinics Insurers Health Locker represents and becomes customer’s custodian for his/her health data Diagnostic Labs Genomic Analysis Com
Slide 38: MyLoanCare Ventures
MyLoanCare Ventures MyLoanCare Ventures received NBFC licence from RBI in Sep 2021 PB has acquired 24.93% stake in Dec 2021 100% digitally powered lending platform “MONEYWIDE” using analytics-based tech stack Why is it relevant to us? It will assist Paisabazaar to fill segment and convenie
Slide 39: UAE: No other international plans for now
UAE No other international plans for now Continued focus on protection against death, disease & disability Started operations in FY19 38% Insurance Premium No 1 in website traffic by Segment 56% Health Term 5% Motor Close No 2 on the premium originated Others Collaboration with UAE government Focus
Slide 40: END
END For any queries please email: investor.relations@pbfintech.in Registered Office PB Fintech Limited Plot 119, Sector 44 Gurugram- 122001 Haryana 37
Slide 41: Price Waterhouse Chartered Accountants LLP Review Report
Price Waterhouse Chartered Accountants LLP Review Report To The Board of Directors PB Fintech Limited (Erstwhile, PB Fintech Private Limited/Etechaces Marketing and Consulting Private Limited) Plot No. 119, Sector-44, Gurugram-122001 Haryana 1. We have reviewed the standalone unaudited financial res
Slide 42: Statement of Standalone Unaudited Financial Results
'B FINTECH LIMITED (ERSTWHILE, PB FINTECII PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN: LS190911R2008PLCO37998 STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEM
Slide 43: Notes to Standalone Unaudited Financial Results
PB FINTECH LIMITED (ERSTWHILE, PB FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) si REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN: L51909HR2008PLC037998 NOTES TO STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED DE
Slide 44: Notes to Standalone Results (continued)
PB FINTECH LIMITED . (ERSTWHILE, PB FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN: L51909HR2008PLC037998 10. Figures for the previous quarters have been regrouped / reclassified, wherever necessary, t
Slide 45: Price Waterhouse Chartered Accountants LLP Review Report
Price Waterhouse Chartered Accountants LLP Review Report To The Board of Directors PB Fintech Limited (Erstwhile, PB Fintech Private Limited/Etechaces Marketing and Consulting Private Limited) Plot No. 119, Sector-44, Gurugram-122001 Haryana 1. We have reviewed the consolidated unaudited financial r
Slide 46: Entities included in the consolidated results
4. The Statement includes the results of the following entities: Parent PB Fintech Limited Subsidiaries: Policybazaar Insurance Brokers Private Limited Paisabazaar Marketing and Consulting Private Limited Icall Support Services Private Limited Accurex Marketing and Consulting Private Limited PB Mark
Slide 47: Review report: subsidiaries not reviewed
7. We did not review the interim financial information / financial results of 3 subsidiaries included in the consolidated unaudited financial results, whose interim financial information / financial results reflect total revenues of Rs. 650.69 lakhs, total net loss after tax of Rs. 932.10 lakhs and
Slide 48: Statement of Consolidated Unaudited Financial Results
PR FINTECH LIMITED (ERSTWHILE, PO FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA. [22001 CIN:LSt90911Ra008PL.CuR7O98 STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECE
Slide 49: Consolidated Unaudited Segment Information
PB FINTECH LIMITED (ERSTWHILE, PB FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) REGD. OFFICE : PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN:151909HR2008PLCO37998 ‘CONSOLIDATED UNAUDITED SEGMENT INFORMATION FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 20
Slide 50: Notes to the Consolidated Unaudited Financial Results
PB FINTECH LIMITED (ERSTWHILE, PB FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN: L51909HR2008PLC037998 NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEM
Slide 51: Notes to the Consolidated Results (continued)
PB FINTECH LIMITED (ERSTWHILE, PB FINTECH PRIVATE LIMITED / ETECHACES MARKETING AND CONSULTING PRIVATE LIMITED) 10. i REGD. OFFICE: PLOT NO. 119, SECTOR 44, GURGAON, HARYANA- 122001 CIN: L51909HR2008PLC037998 The Insurance Regulatory and Development Authority of India (“IRDAI”) had carried out certa