Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q4 FY22 Earnings Presentation
81 slides from Aditya Birla Capital's earnings presentation, May 12, 2022
Slide 1: Exchange intimation cover letter
Ref: No. ABCL/SD/MUM/2022-23/MAY/05 12 May 2022 BSE Limited National Stock Exchange of India Ltd th Phiroze Jeejeebhoy Towers, Exchange Plaza, 5 Floor, Dalal Street, Plot. C/1, Mumbai 400 001 G-Block, Bandra-Kurla Complex, Bandra (East), Scrip Code: 540691 Mumbai 400 051 Scrip ID: ABCAPITAL Symbol:
Slide 2: Investor Presentation: Financial Results Q4 FY22
Investor Presentation FINANCIAL RESULTS: Q4 FY22 MUMBAI 12th May 2022 A Leading Financial Services Conglomerate Aditya Birla Capital Limited 1
Slide 3: Table of contents
Table of contents 1 | Overview Pg. 3 - 16 2 | Business-wise Performance Pg. 17 - 75 3 | Other Updates Pg. 76 - 80 Copyright Content / 2016 NOTE 1: The financials of Aditya Birla Capital Ltd are consolidated financials prepared based on Ind AS unless otherwise specified NOTE 2: All financial figures
Slide 4: Q4 FY22 Performance Highlights: Snapshot
Q4 FY22 | Performance Highlights SNAPSHOT Q4 Consol. PAT Record FY22 Consol. Rank Delivery Vs. Targets Retailisation PAT1 ₹ 450 Cr. ₹ 1,706 Cr. A Top 100 listed On track to deliver 35 Million Company ahead of FY24 Targets Highest ever quarter 5 Year CAGR @ 24% Active Customers profit grew 20% Y-o-Y
Slide 5: Q4 FY22 Performance Highlights
Q4 FY22 | Performance Highlights NBFC & HOUSING FINANCE ASSET MANAGEMENT LIFE & HEALTH INSURANCE LENDING BOOK GROWTH & MIX AUM GROWTH & MIX PREMIUM GROWTH & MIX NBFC: Retail+SME1 book ↑ 25% y-o-y; Mix: 62% Domestic AAUM ↑ 10% y-o-y LI: FY22 Ind. FYP ↑ 14% y-o-y; Protection Mix: 6% HFC: Affordable bo
Slide 6: Strong financial performance
Strong financial performance 50%+ growth in Consolidated PAT I 36% CAGR Business-wise PAT performance Revenue1 (FY) ↑ 16% y-o-y PAT (FY) ↑ 51% y-o-y Businesses (INR Crores) FY21 FY22 ∆ LY% ↑ 1.3x NBFC 1,031 1,487 44% 23,633 ↑ 1.9x 1,706 20,453 Housing 176 253 44% 17,927 1,127 Asset Management 696 89
Slide 7: Delivering superior performance across cycles through diversification
Delivering superior performance across cycles through diversification ABCL Consol 3Y CAGR: FY19-22 Revenue Growth % Industry Aggregate (Average) (Peergroup Median) 15% 15% 17% 14% 12% 14% 10% 11% 8% 9% 9% 5% -5% YoY: YoY: YoY: 3Y CAGR: YoY: YoY: YoY: 3Y CAGR: NBFCs HFCs AMCs LIs Banks FY19-20 FY20-2
Slide 8: On track to deliver ahead of FY24 targets
On track to deliver ahead of FY24 targets Key Metrics FY18 FY19 FY20 FY21 FY22 FY24 Target Retail + SME mix 46% 49% 50% 56% 62% 65% NBFC Net Interest Margin 4.54% 4.91% 5.11% 5.34% 6.25% 6.25%+ Return on Assets 1.8% 1.9% 1.7% 1.7% 2.3% 2.5 – 2.7% Affordable mix 4% 13% 19% 27% 38% ~65% Housing Net In
Slide 9: Strong track record in building scale, retailization & profitability
Strong track record in building scale, retailization & profitability PROTECTING INVESTING FY17 FY22 Key Achievements FY17 FY22 Key Achievements Total Gross Premium1 5,778 13,867 ➢ Overall GWP (LI + HI) Retail AMC: Domestic AAUM 1.88 Lac 2.95 Lac Mix at 69% ➢ #1 non-bank affiliated AMC LI: Net VNB Ma
Slide 10: The One ABC Platform Advantage
The “One ABC” Platform Advantage MONEY SOLUTIONS FOR LIFE UNIFIED BRAND INFRASTRUCTURE SYNERGIES CUSTOMER VALUE Comprehensive A unified brand Large customer product offering provides support to Pan India network of ecosystem and allowing us to build all businesses along co-located branches, analytic
Slide 11: Leading in Adoption of Cutting-edge Technology
Leading in Adoption of Cutting-edge Technology CENTRALIZED IMPLEMENTATION OF NEW TECHNOLOGIES FOR LEVERAGING SYNERGIES AND FASTER EARLY TECH ADOPTION REPLICATION WHATSAPP BOT: 4 One of the first in BFSI to integrate WhatsApp, Chatbot, Wide coverage with 280+ services, 6.8 mn+ customer opt-ins. Micro
Slide 12: Customer Value: The Power of Integrated ABC
Customer Value: The Power of Integrated ABC ABC MOBILE APP MONEY PLANNER Power in the hands of customers with unified First of its kind robotic advisory tool that enables mobile app with 250 services across businesses customers to plan their life’s goals with with seamless, personalized experience t
Slide 13: Leveraging Ecosystems for acquiring customers at scale
Leveraging Ecosystems for acquiring customers at scale Partner ecosystems Cloud Infrastructure OUTCOMES Banking & Ecommerce Contact Channel 150+ ecosystem partners including banks Finance Cos Centre Mgmt. digitally enabled across ABC AI/ML 3.8+ Mn customers acquired through BNPL Payment Fraud Aggreg
Slide 14: Data and Analytics
Data and Analytics LIFE INSURANCE HEALTH INSURANCE AMC LENDING 14% 11% 1% 73% of Individual First of Retail Fresh of Retail Gross Sale of retail portfolio ACQUISITION using ML risk Year Premium Premium (Excl. Micro/ Byte size products) scorecards 37% 18% 10% 10% UPSELL of Individual First of Retail
Slide 15: Leveraging digital technology
Leveraging digital technology Customer Acquisition Customer Service Customer Analytics & Value Scalability Click to connect call for Pre- Hybrid Cloud Strategy Leveraging Ecosystems One ABC App Approved offers Digital acquisition through eco Steady progress made on Public 30+% of One ID customers ac
Slide 16: ABC Digital impact metrics
ABC Digital impact metrics Progress on multiple vectors across businesses as a result of digital focus All metrics are for FY22 unless specified REVENUE 95%+ 4.1 Mn 19+ Mn 95%+ ENABLEMENT Customers customers acquired Live covered in payments and through digital onboarded digitally through digital ec
Slide 17: PAT grew ~3x over years
PAT grew ~3x over 5 years; ~2x over 2 years Figures in Rs. Cr. FY17 FY18 FY19 FY20 FY21 FY22 CAGR (FY17 - FY22) Lending Book 38,839 51,379 63,119 59,159 60,557 67,185 12% Gross Insurance Premium 5,778 6,146 8,008 8,882 11,076 13,867 19% Active Customers (Mn) 10 11 12 20 24 35 Assets under Management
Slide 18: NBFC
NBFC Aditya Birla Capital Limited 17
Slide 19: Performance Summary | NBFC | Aditya Birla Finance
Performance Summary | NBFC | Aditya Birla Finance 1 Disbursement momentum towards Retail and SME segments 2 Improving margins & profitability ➢ Strong momentum in Q4 disbursements at Rs 9,891 Crores (↑49% q-o-q; ↑51% ➢ FY22 PAT at Rs 1,108 Crores (↑ 44% y-o-y); RoA at 2.3% (↑ 63 bps y-o-y) y-o-y); R
Slide 20: Strong revival in disbursements with focus on retailisation
Strong revival in disbursements with focus on retailisation Change in Loan Book Mix Focusing new disbursement in Retail and SME Segments Book Growth SME + Retail + HNI Disbursement SME + Retail + HNI 13% ↑ Y-o-Y 56% → 62% 51% ↑ Y-o-Y 65% of Q4 47,057 48,689 55,180 9,891 3% 3% 3% 704 35% 40% 6,570 50
Slide 21: Value accretive growth
Value accretive growth PAT Return on Assets Return on Equity1 ↑ 18% ↑ 20 bps ↑ 59 bps 298 2.4% 13.1% 254 2.2% 12.5% Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 ↑ 63 bps 2.3% ↑ 296 bps 12.5% ↑ 44% 1,108 1.7% 9.6% 769 Copyright Content / 2016 FY21 FY22 FY21 FY22 FY21 FY22 1 Based on monthly compou
Slide 22: Continue to deliver strong profits
Continue to deliver strong profits Margin improvement led by change in product mix CIR increase managed inspite of retail expansion strategy Net Interest Income1,3 0.52% 0.35% 31.66% 31.37% 31.23% 0.45% 30.17% 0.22% Fee Income CIR2,1 5.54% 5.85% 5.90% Core NIM 5.12% Q4FY21 Q4FY22 FY21 FY22 Q4FY21 Q4
Slide 23: Transformative journey in Retail segment
Transformative journey in Retail segment % Retail as a proportion of overall ABFL portfolio Scale the new products launched in Retail segment 19% 23% 32% Retail ➢ Small ticket and digital ecosystem products (e.g. Buy Now Pay Portfolio Later (BNPL), Checkout EMI, etc.) with lower average ticket size
Slide 24: Doubling our distribution to 320+ branches by FY23
Doubling our distribution to 320+ branches by FY23 68 159 320+ Branches Branches Branches Mar’20 Mar’22 Mar’23 Targeting Tier 3-4 mix at 85%+ by FY24 Targeting Tier 3-4 AUM mix at 25%+ by FY24 10% 9% 14% 25% Tier 1 14% Tier 1 48% Tier 2 20% Tier 2 19% 70% 67% Copyright Content / 2016 Tier 3+4 76% Ti
Slide 25: Monetizing the large scale customer acquisition engine
Monetizing the large scale customer acquisition engine 4.1+ Mn PL Cross-sell 37% customers acquired via Digital on BNPL customers started in of Retail segment Ecosystems in FY22 Mar’22; plan to scale in FY23 disbursements in FY22 via Digital Ecosystems Digital ecosystem portfolio and disbursals as a
Slide 26: SME expansion strategy with focus on digital ecosystem platform
SME expansion strategy with focus on digital ecosystem platform Increase penetration via focus on Expand in Tier 3-4 markets with Digital MSME platform for sourcing from across specific industries access to SME clusters the value chain - LIVE Industry sectors selected basis Market Present in 30 loca
Slide 27: Building granularity across segments
Building granularity across segments Loan book 8,838 11,326 17,620 Loan book 12,778 14,107 14,759 % Mix 19% 23% 32% % Mix 27% 29% 27% ATS (Rs Lakhs) 4.4 5.4 0.5 ATS (Rs Crore) 5.3 5.5 4.9 4% 3% 5% Retail1 LAS SME TL/ WCDL 51% 47% 52% 43% 45% 45% Unsecured LAP LRD 23% 26% 29% 44% 50% 44% Secured 21%
Slide 28: Continued focus on quality of book
Continued focus on quality of book Gross Stage 3 % Stage 3 PCR % Net Stage 3 % Risk Adjusted Margins ↓ 79 bps Q-o-Q ↑ 274 bps Q-o-Q ↓ 54 bps Q-o-Q ↑33 bps Q-o-Q GS3 Provision NS3 Core Credit Cost % 3.9% 45.2% 44.6% 2.3% 5.1% 41.9% 4.8% 4.8% 3.1% 1.7% 2.7% 1.5% 1.2% 1.4% 1.2% 1,305 1,956 1,733 590 81
Slide 29: Adequate provisioning and security cover across segments
Adequate provisioning and security cover across segments 1.8x Net Security Cover1 Net Security Customer Segment GS3 GS3 % Provision NS3 NS3 (%) Security ▪ 73% of total loan book secured. ~Additional 4% Value Cover1 secured through CGTMSE scheme, making over 77% of book secured. SME 255 1.7% 105 150
Slide 30: Well matched ALM with adequate liquidity
Well matched ALM with adequate liquidity ALM optimised for liquidity and costs 31st Mar 20221 Adequate liquidity under stress test scenario 100% 100% Liability Maturity (Mar’23) Fund Available as on Mar 31, 2023 Cumulative Outflows Cumulative Inflows (Including interest payments) (Assuming 85% of co
Slide 31: Leveraging technology across end-to-end lending processes
Leveraging technology across end-to-end lending processes Progress on multiple vectors contributing to customer acquisition, service & process efficiencies Sourcing Collections Revenue Enablement 96% 4.1+ Mn 37% ▪ Fully agile tech stack for customer ▪ ABFL Re-payment hub activated Customers Customer
Slide 32: Key Financials – Aditya Birla Finance Limited
Key Financials – Aditya Birla Finance Limited Quarter 4 Figures in Crs Year Ended FY 20-21 FY 21-22 FY 20-21 FY 21-22 Key Performance Parameters (PY) (CY) (PY) (CY) 48,689 55,180 Lending book 48,689 55,180 13% 11.85% 11.71% Average yield (Incl. Fee Income) 11.69% 11.74% 5.87% 5.34% Interest cost / A
Slide 33: Housing Finance
Housing Finance Aditya Birla Capital Limited 32
Slide 34: Performance Summary | Housing Finance
Performance Summary | Housing Finance | AB Housing Finance 1 Disbursements to target segment 2 All time high margins & Profitability ➢ FY22 PAT at Rs 197 Crore (↑ 44% y-o-y); FY22 RoA at 1.7% (↑ 58 bps y-o-y) ➢ Strong growth in Q4 disbursal at Rs 1,310 Crore (↑ 20% q-o-q ; ↑ 16% Y-o-Y) ➢ Q4 FY22 PAT
Slide 35: Momentum in disbursement to focused segments
Momentum in disbursement to focused segments Growing loan book with increased retail mix Strong disbursements revival in target segment Affordable Customer Count Affordable Gross Disbursal Affordable Customer Count 2x over 2 yrs ↑ 9% Q-o-Q I ↑ 20% Y-o-Y ↑ 12% Q-o-Q I ↑ 5% Y-o-Y ↑ 13% Q-o-Q I ↑ 13% Y
Slide 36: Growth in Affordable Segment
Growth in Affordable Segment Affordable AUM Affordable disbursement Tier wise branch presence for Affordable segment AUM: 2Y CAGR ↑ 42% Disbursal: 2Y CAGR ↑ 60% Mar’21 Mar’22 4,510 583 612 18% 15% 3,244 Tier 1 2,241 Tier 2 17% 238 55% 27% Tier 3 & 4 68% Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY20 Q4 FY21 Q4 FY2
Slide 37: Continue to deliver strong profits
Continue to deliver strong profits Margin improvement led by change in product mix CIR driven by operating leverage Net Interest Income1 Cost Income Ratio 485 386 38.6% 41.8% 40.0% 37.8% 105 130 Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY22 FY21 FY22 NIM1 % 3.62% 4.52% 3.23% 4.24% Opex2 % 1.53% 2.06% 1.
Slide 38: Continued focus on quality of book
Continued focus on quality of book Gross Stage 3 % Stage 3 PCR % Net Stage 3 % Risk Adjusted Margins Δ: ↓ 10 bps Q-o-Q Δ: ↓ 37 bps Q-o-Q Δ: ↓ 6 bps Q-o-Q Δ: ↑ 38 bps Q-o-Q GS3 Provision NS3 Core Credit Cost % NIM (adj. Credit Cost) % 36.3% 1.40% 1.34% 4.10% 2.12% 3.72% 34.0% 33.6% 1.16% 2.02% 2.82%
Slide 39: Well matched ALM with adequate liquidity
Well matched ALM with adequate liquidity ALM optimised for liquidity and costs (As on 31st Mar 2022) Adequate liquidity under stress test scenario Liability Maturity (Till Mar’23) Fund Available as on Mar 31, 2023 100% 100% Including interest payments (Assuming 85% collections) Cumulative Outflows 2
Slide 40: Digital impact metrics in Housing Finance
Digital impact metrics in Housing Finance Progress on multiple vectors contributing to customer acquisition, service & process efficiencies Sourcing Underwriting Revenue 85%+ 85%+ 46%+ ▪ Integration live between EZGO & Enablement ▪ Central Processing Hub for data customers Reduction of Reduction in
Slide 41: Value accretive growth
Value accretive growth PAT Return on Assets Return on Equity1 ↑ 50% 54 ↑ 65 bps 1.90% ↑ 3.6% 13.85% 36 1.25% 10.23% Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 ↑ 44% 197 ↑ 58 bps 1.72% ↑ 3.0% 13.00% 137 1.15% 9.96% Copyright Content / 2016 FY21 FY22 FY21 FY22 FY21 FY22 1 Based on monthly compoun
Slide 42: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited Quarter 4 Figures in Rs Crore Year Ended FY 20-21 FY 21-22 Key Performance Parameters FY 20-21 FY 21-22 (PY) (CY) (PY) (CY) 11,869 12,005 Lending book 11,869 12,005 10.25% 10.31% Average yield** 10.33% 10.33% 6.63% 5.79% Net Interest cost / Avg.
Slide 43: Asset Management
Asset Management Aditya Birla Capital Limited 42
Slide 44: Performance Summary | Asset Management
Performance Summary | Asset Management | ABSL Asset Management Co 1 Momentum in AUM growth and value accretive mix 2 Strong and growing retail franchise ➢ Mutual Fund QAAUM at Rs 2.96 Lac Crore (↑ 10% y-o-y); Backed by consistent ➢ Investor folios ~7.9 Mn; Added 1.29 Mn folios in FY22 investment per
Slide 45: Rebound in AUM growth
Rebound in AUM growth Closing Assets under Management Average Assets under Management All figures in Rs. Cr All figures in Rs. Cr Domestic Total Equity Equity Mix Overall QAAUM Domestic Equity Equity Mix ↑ 7% Y-o-Y ↑ 22% Y-o-Y 42% (PY: 37%) ↑ 9% Y-o-Y ↑ 25% Y-o-Y 41% (PY: 36%) 3,07,409 2,81,035 2,62
Slide 46: Strong retail franchise
Strong retail franchise Retail KPIs Equity QAAUM Individual MAAUM B-30 MAAUM Size Rs 1,20,993 Crore Rs 1,38,019 Crore Rs 45,982 Crore AAUM Mix 40.9% (PY: 36.0%) 47.8% (PY: 46.9%) 15.9% (PY: 16.1%) Rs. Crore Rs. Crore Rs. Crore ↑ 9% ↑ 5% ↑ 25% 1,38,019 1,20,993 45,982 43,754 96,934 1,26,982 Yearly Gr
Slide 47: Focus on Growing SIP Book
Focus on Growing SIP Book Building sustainable SIP Book Long Tenure SIP Book SIP Book in Rs Cr.(1) Quarterly New SIP (1) registrations # of Live Outstanding SIPs (1) % Count of Total SIPs (2) Count (‘000) (Mn) (Mar-22) 895 794 324 3.17 2.80 89% 80% 222 Mar-21 Mar-22 Over 5 Years Over 10 Years Copyri
Slide 48: Large and well-diversified distribution network
Large and well-diversified distribution network Continue to expand distributor base and empaneled 7,000+ new MFDs in FY22 280+ 72,000+ 110+ 90+ 240+ 80+ Locations MFDs Banks1 Emerging Market National Digital Representatives Distributors Partners Overall Asset Sourcing Mix1 Higher MFD Share in Equity
Slide 49: Growing Alternative Assets Business
Growing Alternative Assets Business Passives 1,692 2,090 2,964 5,302 9,962 Passive AUM (Rs Crore) 2 1,167 FOF ~3,95,000 6x Investor Folios Serviced Growth in Passives 1 1,039 7,439 Index 3,187 ETF 878 654 233 805 764 404 921 1,078 1,008 1,076 1,355 15+ Product Pipeline Mar-21 Jun-21 Sep-21 Dec-21 Ma
Slide 50: Holistic Digital Innovation
Holistic Digital Innovation Customer Customer Distributor 77% 88% 88% Digital Payments 99% Onboarding Servicing Onboarding Innovation and Continuous improvement of our Digital Assets Partner Assets Investor Assets Partner API services Investor Active Mobile App for IFAs Mobile App Account App Copyri
Slide 51: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited Quarter 4 Figures in Rs Crore Year Ended FY 20-21 FY 21-22 Key Performance Parameters FY 20-21 FY 21-22 (PY) (CY) (PY) (CY) 2,69,278 2,95,805 Domestic AAUM 2,44,501 2,92,578 96,934 1,20,993 Domestic Equity AAUM 84,776 1,15,446 9,522 10,674 Alternate
Slide 52: Life Insurance
Life Insurance Aditya Birla Capital Limited 51
Slide 53: Performance Summary | Life Insurance
Performance Summary | Life Insurance | ABSL Insurance Co 1 Consistent growth in Individual and Group Business 2 High growth in Renewal and Total Premium ➢ Ind. FYP ↑ 11% in Q4 (9% for Industry) and ↑ 14% in FY22 (14% Y-o-Y in FY21) ➢ FY22 Renewal premium1 ↑ 24% y-o-y, 22% CAGR over 2 years ➢ Product
Slide 54: Consistent growth in Individual and Group Business
Consistent growth in Individual and Group Business Individual FYP1 Group New Business Premium ABSLI Private Players Industry ABSLI Private Players Industry Δ FY’21 ↑ 30% Y-o-Y ↑ 23% Y-o-Y ↑ 15% Y-o-Y Δ FY’21 ↑ 14% Y-o-Y ↑ 22% Y-o-Y ↑ 16% Y-o-Y Δ FY’20 ↑ 74% Y-o-Y ↑ 47% Y-o-Y ↑ 20% Y-o-Y Δ FY’20 ↑ 30
Slide 55: Multi Channel Distribution Strategy
Multi Channel Distribution Strategy Pan India well diversified distribution scale 2,900+ 340+ 79,500+ 7 14,400+ Cities Own Branches Agents Banca Tie-ups Bank Branches HDFC Bank, DCB, KVB, Indian Bank, DB, DBS, Ujjivan Strong growth across channels Resulting in a balanced sourcing mix Product Mix by
Slide 56: Peer Comparison - Superior Performance Across KPIs
Peer Comparison - Superior Performance Across KPIs Individual FYP Renewal Premium*1(YoY %) Persistency *1 Opex Ratio *1 EV Growth** Bank Backed Non Bank Backed 22% Industry Peers 16% 16.1% 88% 84% 18.3% 14.4% 12% 80% 17.3% 73% 10.8% 10.6% 7% 2 Y CAGR YoY- FY22 2 Y CAGR 9M- FY22 13M 25M FY19 H1 FY22
Slide 57: Focus on value accretive product mix
Focus on value accretive product mix Product Mix Products and Risk Management New products launched in last 18 months contributed to 45% of Ind. FYP 6.2% 5.8% 5.5% ➢ Saral Pension, Vision Life Income Plus Plan, Guaranteed Annuity Plus New Product and Assured Saving plan across segment with multiple
Slide 58: Steady increase in Margins, fast progress on guidance
Steady increase in Margins, fast progress on guidance Net VNB12 Embedded Value (in cr) Net VNB Margin ↑ 68% Y-o-Y 9.5% 5.7% 0.3% 369 17 173 609 6.9% 10.6% 15.0% 3.0x EVOP: Rs.995 Cr 369 RoEV: 15.4% 7,609 6,441 219 5,188 125 FY20 FY21 Unwind of Profit Net VNB Operating & Economic FY22 Copyright Conte
Slide 59: Constant Quality Improvements
Constant Quality Improvements Total Renewal Premium Persistency1 Controlled Opex2 Renewal Growth Digital Renewal Improving Persistency across all cohorts Controlled Opex to premium ratio ↑ 24% Y-o-Y 73% FY’22 FY’21 FY’20 Δ 2Y 85% 13th 82% ↑ 2% 83% 15.9% 3.2% 6,475 +22% 73% 13.9% 25th 72% ↑ 5% 12.7%
Slide 60: Growing AUM and Strong Investment Practices
Growing AUM and Strong Investment Practices Strong Investment Processes | Competitive returns | Good Portfolio Asset Under Management Composition of AUM 6% 22% 60,796 26% 52,615 41,126 30% 74% 76% 78% 22% 24% 26% 38% FY’20 FY’21 FY’22 Debt Equity Equity Debentures and Investment Performance1 bonds G
Slide 61: Focus on Longer Policy Term and Younger customer profiles
Focus on Longer Policy Term and Younger customer profiles Average Policy term Average age of customer FY’22 FY’21 FY’20 FY’22 FY’21 FY’20 Non Par 14 38 Non Par 16 17 38 38 37 32 Par 39 27% Upsell contribution for Par 35 32 FY’22 of Individual FYP 33 Protection 40 Protection 35 38 35 37 38 25 ULIP 37
Slide 62: Leveraging technology and data analytics in Life Insurance
Leveraging technology and data analytics in Life Insurance Strong Digital KPIs with focus on scalability, superior customer servicing and use of data analytics to cross-sell Customer Customer Self Pre-Approved 96% Digital Renewal 73% 83% 22% Onboarding Servicing New Business Engagement Customer Rete
Slide 63: Key Financials – Aditya Birla Sun Life Insurance Limited
Key Financials – Aditya Birla Sun Life Insurance Limited Quarter 4 Figures in Rs Crore Year Ended FY 20-21 FY 21-22 Key Performance Parameters FY 20-21 FY 21-22 (PY) (CY) (PY) (CY) 739 826 Individual First year Premium 2,076 2,442 597 1,032 Group First year Premium 2,488 3,223 1,856 2,217 Renewal Pr
Slide 64: EV Sensitivity
EV Sensitivity Figures in Rs Crore Sensitivity Table Scenarios Δ IEV Δ Gross VNB Reference Rates and Assets Increase of 100 bps in the reference rates 2.20% 5.10% Decrease of 100 bps in the reference rates -3.50% -6.30% Policy/premium discontinuance rates (Proportionate) 10% Increase (multiplicative
Slide 65: Health Insurance
Health Insurance Aditya Birla Capital Limited 64
Slide 66: Performance Summary | Health Insurance
Performance Summary | Health Insurance | AB Health Insurance Co. 1 Sustained strong growth 2 Strong financial management ➢ Continued growth momentum: FY22 GWP Rs 1,727 Crore (↑ 33% y-o-y)| Industry ➢ Achieved breakeven in Q4 FY22 I One of the fastest break even amongst SAHI market share ↑ 2.1% (PY:
Slide 67: Business Outcomes
Business Outcomes GWP growth at 1.3x y-o-y Lives covered growth at 1.4x y-o-y Retail Mix at 76% 14 Mn.+ through rural & micro/ byte-sized products Lives Covered (Mn.) Revenue (Rs. Cr.) 1.98x 1,727 2.3x 19 1,301 13 872 76% Retail & Rural 14 Rural & Byte 82% 8 80% 10 5 18% 24% Group Retail & Group 20%
Slide 68: Scaled-up, diversified and digitally enabled distribution -1/2
Scaled-up, diversified and digitally enabled distribution -1/2 Multi-channel & Digitally enabled distribution Diversified and scaled network Agency: Scalable channel with 183 branches* FY21 FY22 Diversified retail channel mix | Agency GWP ↑ +1.4x of PY | ABC synergy → agent base expansion 71% 76% Rs
Slide 69: Scaled-up, diversified and digitally enabled distribution -2/2
Scaled-up, diversified and digitally enabled distribution -2/2 Distribution digital capabilities Key partners • Partner specific products • Built a robust digital ecosystem for • Digital renewals • 1 cr super top up customer acquisition • AI based campaigns • Contextual & Byte sized products • Partn
Slide 70: Pillars for achieving scale and differentiation
4 Pillars for achieving scale and differentiation ABHI Purpose – Empower & Motivate families to prioritize their health and live fulfilling lives Value creation at ABHI Differentiated Eco-system Business Model Digital Data & Analytics Development Copyright Content / 2016 Key Enablers Product Technol
Slide 71: Differentiated Business Model
Differentiated Business Model Analyze Customer demographics Attract Health-conscious Customers Personalized Health management 03 02 01 Risk Stratification & Intervention 04 IMPROVE YOUR HEALTH GET REWARDED KNOW YOUR HEALTH Customer Servicing demographic Member High Health Details Risk 180+ data Medi
Slide 72: Differentiated & segmented offerings
Differentiated & segmented offerings Diversified product suite with differentiated health first offerings enabling market expansion Product Differentiators Industry First Offerings Incentivized Wellness 100% HealthReturnsTM 1 Cr Super Top Up with a leading Broker Chronic Care Management Global Healt
Slide 73: Holistic & integrated health eco system
Holistic & integrated health eco system Preventive Promotive Diagnostic Centers Physical & Holistic & Integrated Eco System Nutritional health Alternative • Integrated platform for personalized health Medicine Mental health recommendations and Health Management & Mindfulness Interventions • Meeting
Slide 74: Data & Analytics
Data & Analytics Investing in High End Capabilities CLTV – Acquisition /Retention / Cross sell Risk Management-UW & Fraud Customer Demographic Servicing Health Underwriting Member Interaction Interaction Details Provider (Retail Customer) Digital Claims footprint Policy details Claims Wellness Organ
Slide 75: Digital Capabilities
Digital Capabilities Progress on multiple vectors contributing to customer acquisition, retention & process efficiencies Lead Generation Revenue 98% 10Mn 85% 37% Predictive analysis & Enablement Digital marketing ML based cross-sell though digital Customer on- Customers Welcome Calls Self servicing
Slide 76: Key Financials – Aditya Birla Health Insurance Limited
Key Financials – Aditya Birla Health Insurance Limited Quarter 4 Figures in Rs Crore Year Ended FY 20-21 FY 21-22 Key Performance Parameters FY 20-21 FY 21-22 (CY) (CY) (CY) (CY) 360 419 Retail Premium1 1,061 1,308 81 138 Group Premium 239 418 441 557 Gross Written Premium 1,301 1,727 424 532 Revenu
Slide 77: Other Updates
Other Updates Aditya Birla Capital Limited 76
Slide 78: Other Financial Services Businesses
Other Financial Services Businesses Strong performance across financial metrics across these businesses Revenue (FY) ↑ 21% y-o-y PBT (FY) ↑ 46% y-o-y Revenue (Q4) ↑ 21% y-o-y PBT (Q4) ↑ 106% y-o-y ↑ 1.4x ↑ 2.7x ↑ 2.3x 1,081 190 ↑ 1.5x 294 42 896 130 242 756 193 18 21 69 FY20 FY21 FY22 FY20 FY21 FY22
Slide 79: Consolidated Profit & Loss
Consolidated Profit & Loss Quarter 4 Figures in Rs Crore Full Year FY 20-21 FY 21-22 Consolidated Profit & Loss FY 20-21 FY 21-22 (PY) (CY) (PY) (CY) 18% 5,589 6,617 Revenue 19,254 22,230 15% 420 529 Profit Before Tax (before share of profit/(loss) of JVs 1,277 1,946 80 79 Add: Share of Profit/(loss
Slide 80: A financial services conglomerate meeting the life time needs of its customers
A financial services conglomerate meeting the life time needs of its customers 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
Slide 81: Disclaimer
Disclaimer The information contained in this presentation is provided by Aditya Birla Capital Limited (“ABCL or the Company”), formerly known as Aditya Birla Financial Services Limited, to you solely for your reference. Any reference herein to "the Company" shall mean Aditya Birla Capital Limited, t