Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q3 FY2018 Earnings Presentation
32 slides from Bajaj Finserv's earnings presentation, Feb 1, 2018
Slide 1: Cover letter to stock exchanges for Q3 FY18 investor presentation
BAJAJ FINSERV 1 February 2018 Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd 1st Floor, New Trading Ring, Exchange Plaza, 5th Floor Rotunda Building, P J Tower, Plot No.C-1, G Block, Dalal Street, Mumbai 400 001 Bandra-Kurla Complex, Sa
Slide 2: Bajaj Finserv Limited Investor Presentation – Q3 FY18
BAJAJ FINSERV LIMITED Investor Presentation – Q3 FY18* * Financial year 2017-18
Slide 3: Bajaj Finserv – A diversified financial services group
Bajaj Finserv – A diversified financial services group 55.13%* 74% 74% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life Insurance # Insurance # • Diversified NBFC present in consumer finance, SME, • Highest PAT among private • Among the top 5 private sector commercial and rural lending
Slide 4: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights All Figures in Rs Million Performance Highlights of Q3 FY18 over Q3 FY17 CY 76,655 17,635 7,486 28,693 21% 28% 22% 4% PY 63,172 13,782 6,138 27,597 Total Revenue Profit before Tax PAT Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) • Bajaj Fin
Slide 5: Consolidated profit components
Consolidated profit components All Figures in Rs Million Consolidated profit components for Q3 FY18 Intercompany adjustments Bajaj Finserv- Standalone - Others 110 Life 7,486 Insurance 2 Bajaj Finserv General - Insurance 1,206 Consolidated Bajaj Finance 1,936 4,232 Consolidated profit components for
Slide 6: 9M Highlights
9M Highlights All Figures in Rs Million Highlights of Group Companies BAJAJ FINSERV 9M FY18 9M FY17 Growth BAJAJ FINANCE 9M FY18 9M FY17 Growth Total Revenue 217,701 174,676 25% AUM 763,837 576,048 33% Net worth (Cons) 200,614 152,625 31% Total Income 97,720 73,193 34% PAT 20,560 17,271 19% PAT 19,2
Slide 7: Bajaj Finance Limited
Bajaj Finance Limited # # Standalone 6
Slide 8: Bajaj Finance - Overview
Bajaj Finance - Overview Business Construct Non-bank with strategy & structure of a bank with consistent track record of profitability Focused on mass affluent & above clients with strong cross sell orientation Diversified financial services strategy seeks to optimise risk and profit to delive
Slide 9: Bajaj Finance – Overview: Differentiators
Bajaj Finance – Overview DIFFERENTIATORS Part of the Bajaj Group – one A trusted brand with strong brand equity of the oldest & most respected business houses Focus on mass affluent and Overall franchise of 24.81 Mn and Cross sell client above customers base of 14.37 Mn Strong focus on cross sel
Slide 10: Bajaj Finance’s businesses
Bajaj Finance’s businesses BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and- electronics, digital SMEs with an average products covering spoke model in 588 products & furniture annual sales of ₹ 10-12 short, medium and location
Slide 11: Bajaj Finance has clocked healthy growth in revenues
Bajaj Finance has clocked healthy growth in revenues All Figures in Rs Million Book Size Total Income 800,000 730,687 120,000 700,000 99,890 100,000 600,000 568,323 542,848 80,000 73,334 500,000 427,558 400,000 60,000 54,182 311,994 300,000 40,744 229,710 40,000 31,097 35,433 167,436 27,000 200,000
Slide 12: Portfolio quality continues to be good, and operating costs remain under control
Portfolio quality continues to be good, and operating costs remain under control All Figures in Rs Million Operating expenses as a % of NII Loss Provision and Net NPA% 9,000 8,039 2.0% 60.0% 8,000 45% 46% 45% 50.0% 43% 41% 40% 40% 7,000 5,429 6,000 40.0% 5,000 3,846 30.0% 4,000 3,000 2,588 0.45% 0.4
Slide 13: Bajaj Finance – Q3 highlights
Bajaj Finance – Q3 highlights All Figures in Rs Million Performance Highlights of Q3 FY18 over Q3 FY17 CY 730,687 35,433 7,668 35% 31% 38% PY 542,848 27,000 5,557 Book Size Total Income Profit After Tax CY 1.08% 5.0% • Borrowing mix is not excessively dependent on banks. (Mix of 32 : 57 : 11 between
Slide 14: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 13
Slide 15: General Insurance – Overview: Strategy
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 & CoR Deliver indust
Slide 16: General Insurance – Overview: Differentiators
General Insurance – Overview DIFFERENTIATORS Industry leading combined ratios over the last several years with superior ROE Strong selection of Risk Highest PAT in private sector in FY17 Trend-setter in the industry for cash-less claims. First to insource health insurance administration Disrup
Slide 17: Consistently delivering industry leading combined ratios and RoEs
Consistently delivering industry leading combined ratios and RoEs Combined Ratio 110.0% 105.0% 104.7% 99.5% 102.2% 98.1% 101.0% 96.7% 101.5% 99.3% 96.8% 101.7% 99.2% 94.3% 88.8% 90.0% 70.0% 50.0% FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q2 FY18 BAGIC Top 5 Private Players ROE (for the period non-annulized)
Slide 18: BAGIC continues to deliver high efficiency of capital
BAGIC continues to deliver high efficiency of capital All Figures in Rs Million BAGIC - Capital Invested - Networth 43,018 35,346 33,486 50,000 27,897 22,255 40,000 16,643 12,553 30,000 20,000 10,000 2,768 2,768 2,768 2,768 2,768 2,768 2,768 0 FY13 FY14 FY15 FY16 FY17 Q3 FY17 Q3 FY18 No Capital infu
Slide 19: BAGIC retains its position among top private insurers in terms of GWP
BAGIC retains its position among top 2 private insurers in terms of GWP Industry Premium Trends (Ex Specialized GDPI) 1,134 1,200 1,050 874 537 900 776 706 Rs. Billion 750 629 397 600 351 320 450 279 330 282 300 597 386 425 477 127 157 150 350 155 173 - FY13 FY14 FY15 FY16 FY17 Q3 FY17 Q3 FY18 PSU P
Slide 20: BAGIC has a balanced business mix
BAGIC has a balanced business mix Business Mix 100% 9% 9% 9% 10% 9% 9% 8% 8% 6% 19% 18% 19% 18% 19% 16% 16% 8% 9% 13% 6% 6% 13% 15% 5% 5% 6% 6% 7% 9% 9% 50% 6% 5% 5% 59% 59% 55% 56% 46% 46% 44% 0% FY13 FY14 FY15 FY16 FY17 9M FY17 9M FY18 Motor (Retail) Health (Retail) Group Health Prop, Liability, E
Slide 21: BAGIC continues strong AUM growth
BAGIC continues strong AUM growth AUM(cash and investments) - Rs Billion (as of end of period) 140 133 120 108 BAGIC 105 continues to 100 grow its 92 AUM 79 strongly 80 70 58 Investments 60 are largely in fixed 40 income securities 20 0 FY13 FY14 FY15 FY16 FY17 Q3 FY17 Q3 FY18 20
Slide 22: Bajaj Allianz General – Q3 highlights
Bajaj Allianz General – Q3 highlights All Figures in Rs Million Performance Highlights of Q3 FY18 over Q3 FY17 CY 18,924 14,861 2,617 6.3% 10% 18% 33% PY 17,216 12,588 1,971 6.1% Gross Written Net Earned Premium Profit After Tax ROE Premium (Not Annualized) Ex Crop GWP was Rs. 18,187 Mn in Q3 FY18
Slide 23: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 22
Slide 24: Life Insurance - Overview: Strategy
Life Insurance - Overview STRATEGY Grow regular premium Diversified distribution channels with an emphasis on individual agents Maintain a balanced product mix Maintain leadership amongst private companies in the financial inclusion segment 23
Slide 25: Life Insurance - Overview: Differentiators
Life Insurance - Overview DIFFERENTIATORS Large pan proprietary agency force Large Proprietary Wide distribution reach of offices and agents Agency Force Lean support structure In terms of lives covered in group schemes, BALIC Financial Inclusion leads the private sector, with about 35% shar
Slide 26: Strong growth in Individual Rated premiums
Strong growth in Individual Rated premiums All Figures in Rs Million Individual Rated NB Agency Individual Rated NB 12,000 12,000 10,101 10,000 10,000 8,667 8,000 7,172 8,000 6,429 6,000 6,000 4,000 3,648 4,000 2,854 2,555 2,882 2,000 2,000 - - FY16 FY17 Q3 FY17 Q3 FY18 FY16 FY17 Q3 FY17 Q3 FY18 • F
Slide 27: Diversified product mix
Diversified product mix Individual Rated NB Premium - Product Individual Rated NB Premium - Product Mix (Annual) Mix (Quarterly) 80% 80% 75% 72% 70% 60% 60% 51% 42% 40% 40% 25% 23% 21% 20% 20% 7% 5% 4% 5% 0% 0% Individual - Par Individual - Non Individual - Unit Individual - Par Individual - Non Ind
Slide 28: Assets Under Management have grown 12%
Assets Under Management have grown 12% AUM as of end of period in Rs Billion AUM AUM (Mix) 600 524 Unit Linked Other than Unit Linked 493 350 468 299 500 284 436 441 273 300 249 380 388 400 245 219 250 216 226 213 208 192 195 175 300 200 135 150 200 100 100 50 0 0 FY13 FY14 FY15 FY16 FY17 Q3 FY17 Q3
Slide 29: BALIC is amongst the most capital efficient private insurers
BALIC is amongst the most capital efficient private insurers All Figures in Rs Million Capital Invested - Networth 100,000 90,453 BALIC’s Networth is 7.5 times 84,756 82,698 76,315 the Capital infused as of 80,000 67,490 58,708 Q3 FY18 60,000 48,441 No Capital infused after 12,107 12,107 12,107 12,1
Slide 30: Bajaj Allianz Life – Q3 highlights
Bajaj Allianz Life – Q3 highlights All Figures in Rs Million Performance Highlights of Q3 FY18 over Q3 FY17 CY 3,648 5,685 7,956 17,392 28% 17% 14% 17% PY 2,854 4,860 6,999 14,847 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 1,629 600% 524,008 Solvency Ratio as on -15% 31 De
Slide 31: 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 32: Thank You
BAJAJ FINSERV Thank You 31