Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q1 FY22 Earnings Presentation
80 slides from Cholamandalam Financial's earnings presentation, Aug 5, 2021
Slide 1: Presentation to Analyst / Investor cover letter
August 5, 2021 The Manager The Secretary Listing Department BSE Limited, National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Fort, Plot No.C-1, Block G Mumbai 400 001 Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol : CHOLAHLDNG Sc
Slide 2: Corporate Presentation – Q1-FY22
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q1-FY22 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 121 Years of $5.5 $18.2 Turnover cap (as on Years Existence B B (FY21) 30th Jun 2021) Listed 3 Sectors 30 Businesses 10 Companies 19 Geographical 90+ Manufacturing 50,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 33,924 33,946 54,551 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 26,374 7,550 11,896 22,466 42,077 NA 12,474 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(
Slide 5: Spirit of Murugappa
SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 4
Slide 6: Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.46% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 7: Shareholding pattern & Share price movement
Shareholding pattern & Share price movement Shareholding Pattern Share Price movement as of June 30, 2021 40% 35% 11% 30% 15% 25% 49% 20% 15% 25% 10% 5% 0% Promoters Mutual Funds Public FII Institutional Holders (More than 1%) CFHL Sensex Top Domestic Institutional Holdings * Nippo n India Mutual Fu
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Rs.in Cr. Revenue Profit after tax Networth EPS (Rs.) Revenue Profit after tax Networth EPS (Rs.) FY21 13905 1764 11359 43.93 Q1 FY22 3591 357 11736 8.86 39% 42% 6% 51% 17% 50% 11% 14% FY20 13136 1165 9702 29.35 Q1 FY21 3234 589 10311 15.39 7
Slide 9: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit after tax (Rs.crs) *1764 Q1Q1 FY22 FY22 268 Q1 FY21 *1165 2 102 1538 *590 1076 *357 153 0.2 32 444 328 -2 -15 -42 -5 -3 FY20 FY21 Q1FY21 Q1FY22 CIFCL CMSGICL CFHL CMSRSL *CFHL Consol 8
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) FY21 FY20 Q1 FY22 Q1 FY21 CIFCL FY21 FY20 Q1 FY22 Q1 FY21 Income 58 91 2 3 Disbursements (Rs. in Cr) 26,043 29,091 3,635 3,589 Expenses 24 4 3 6 AUM (Rs. in Cr) 76,529 66,943 75,763 70,826 Profit Before Tax 34 87 -1 -3 No.of B
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars June 30, 2021 March 31, 2021 Owned Funds (A) 1,140.37 1,140.74 Adjusted Networth (B) 10,273.74 7,983.39 Risk Weighed Assets ( C) 1,282.50 1,290.11 Outside Liabilities (D) 155.45 162.19 Net assets (E) 1,281.98 1,279.35 Investment in equity shar
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 30,451 * 29,091 5% 1,157 4% 5% 6% 5% 1,505 * 26,043 5% 14% 14% 17% 4,310 16% 4,199 1,542 4,252 90% 24,983 82% 80% 78% 78% 23,387 20,249 1% * 3,589 * 3,635 190 199 168 568 3,231 2,846 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 VF LA
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 69,996 * 67,821 4,345 * 63,501 * 60,549 4,402 4% 5% 6% 5% 7% 3,302 * 54,279 3,125 15,236 22% 22% 21% 15,015 22% 22% 1,912 13,371 13,218 11,762 50,415 48,403 75% 73% 72% 74% 71% 44,206 46,828 40,
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1515 *9,887 *9,560 164 164 *8,595 *8,172 1186 164 164 1052 *6,176 156 9,396 9,723 8,008 8,431 6,019 431 327 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Reserves and Surplus Equity Share Capital * Total Networth 14
Slide 16: Vehicle Finance
Vehicle Finance Primary Colours 15
Slide 17: Vehicle Finance: Q1FY22 Performance
Vehicle Finance: Q1FY22 Performance Disbursements • Disbursements declined by 12% in Q1FY22 as compared to Q1FY21. Assets under management • Assets have grown by 3% as compared to Q1FY21. Loss and • Loan losses is at 3.7% in Q1FY22 as compared to 0.5% in Q1FY21. provisions Profit before tax • PBT de
Slide 18: Sector outlook – Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry witnessed a growth of 39% in Q1 • More than 80% of our branches are present in the FY’22. The sales momentum in tractors is expected to rural areas, towns and semi urban areas which gives marginall
Slide 19: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a growth • Our focus is predominantly on retail customers mainly in of 321% in Q1 FY’22 with a low base effect. The second smaller towns and rural market. Our exposure to t
Slide 20: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) 1,07,732 (in Units) 1,06,865 61,159 54,819 Chola @ 12% Chola @ 35% 163% 54,037 242% 25,134 20,526 7,355 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 • Stronger demand from Consumption-
Slide 21: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 8,67,118 67,717 Chola @12% 7,08,179 6,47,848 51,131 Chola @ 197% 321% 591% 25,053 1,53,861 3,628 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 • Improved industrial act
Slide 22: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 23: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re
Slide 24: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Maharashtra Karnataka Maharashtra Kerala Kerala 6% 7% 6% 5% 6% Puducherry Gujarat 7% 5% Puducherry 10% 3% Telangana Gujarat 5% Telangana Goa
Slide 25: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler 3 Wheeler HCV HCV CE CE 0.3% 1% 5% 9% 6% 6% 2 Wheeler LCV 2 Wheeler 8% 4% 18% LCV 21% MUV 8% Used Vehicles Used Vehicles 22% 27% MUV 7%
Slide 26: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 383 504 164 9% 8% 6% 8% 6% 413 2% 3% 1% 5% * 4,781 944 7% 12% 16% 16% 363 1,231 18% 92 321 5% 20% 6% 5% 777 567 9% 8% 366 9% * 3,231 218 3% 10% 6% 297 600 4% Yield Yiel
Slide 27: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 5% 6% 6% 6% 6% * 49,936 * 50,415 * 49,264 * 48,403 12% 11% 10% 9% 9% 46,828 Low Yield 2,718 2,882 3,069 2,982 2,485 5,041 4,882 5,453 4,560 5,585 21% 20% 21% 21% 21% 10,209 10,472 Medium Yield
Slide 28: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) 24,983 *50,415 *48,403 1,479 *46,828 23,387 1,295 *44,206 2,054 *40,606 2,056 20,249 48,937 47,108 44,775 40,606 42,150 3,231 2,846 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 O
Slide 29: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7,388 1,287 1,269 6,563 5,430 945 -41% 440 1,905 1,686 258 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 28
Slide 30: Loan Against Property
Loan Against Property ary Colours 29
Slide 31: Loan Against Property – Q1FY22 Performance
Loan Against Property – Q1FY22 Performance • Disbursements has grown by 225% in Q1FY22 as compared to Disbursements Q1FY21. Asset under • The business has grown the assets by 11% in Q1FY22. management Loss and provisions • Loan losses is at 2.1% in Q1FY22 as against 0.3% in Q1FY21. Profit before tax
Slide 32: Loan Against Property - Industry outlook
Loan Against Property - Industry outlook Sector Outlook Chola’s Position • As per CRISIL, pick-up in economic activity with • Business has implemented a renewed credit policy favourable government measures supported MSMEs and is well equipped to capitalize on the demand in in FY21. Also, MSME borrow
Slide 33: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) CAGR - (3%) * 14,777 * 14,509 3,837 * 12,960 2,062 * 13,109 1,961 3,662 3,627 * 11,626 2,425 2,427 1,671 12,716 12,548 10,536 10,683 9,954 225% 119 386 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19
Slide 34: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,639 1,478 306 305 1,247 244 -25% 432 86 386 65 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 33
Slide 35: Home Loans
Home Loans Primary Colours 34
Slide 36: Home Loans – Q1FY22 Performance
Home Loans – Q1FY22 Performance Disbursements • Disbursements has grown 5% in Q1FY22 as compared to Q1FY21. Asset under • The business has grown the assets by 33% in Q1FY22. management Loss and provisions • Loan losses is at 1.9% in Q1FY22 as against 0.3% in Q1FY21. Profit before tax • PBT has grown
Slide 37: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • While marginal demand recovery is expected in Q2, • Chola does not have material under construction exposure affordable housing demand may pick up only by Q3 driven to
Slide 38: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *4,406 *4,345 620 602 1,505 1,542 *3,302 *3,125 688 1,157 677 3,726 3,801 2,449 2,613 5% 1,912 190 199 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 On Book Assigned * Total AUM 37
Slide 39: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 112 519 357 64 38% 41 189 38 154 28 111 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 38
Slide 40: Funding Profile
Funding Profile <&} Chola aXe 39 Murugappa Financial Holdings
Slide 41: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.07 19.08 18.36 17.36 5.41 3.93 2.48 5.12 4.92 13.24 15.28 15.14 16.60 12.44 FY18 FY19 FY20 FY21 Q1FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care
Slide 42: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 58,513 * 60,578 * 62,047 * 63,730 * 63,197 7% 6% 7% 4% 5% 3% 2% 3% 2% 3% 6% 7% 6% 7% 7% 6% 6% 6% 4% 6% 3% 3% 2% 2% 3% 10% 11% 13% 14% 15% 58% 57% 57% 58% 55% 7% 7% 7% 7% 6% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Tier II Capit
Slide 43: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type *58,513 *60,578 *62,047 *63,730 *63,197 7% 7% 6% 7% 6% 1% 2% 2% 2% 2% 3% 3% 3% 1% 2% 4% 6% 6% 6% 6% 67% 65% 66% 67% 66% 1% 1% 3% 1% 4% 1% 4% 4% 4% 4% 9% 8% 10% 9% 8% 2% 3% 3% 2% 3% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Trusts Mu
Slide 44: ALM Statement as of 30th Jun 2021 (As per IND AS)
ALM Statement as of 30th Jun 2021 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2021 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 2,975.37 775.38 2,490.60 11.36 72.82 1,397.42 194.28 - 7,917.23 Advances 1,553.86 1,428.20 1,198.69 6,
Slide 45: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited 44
Slide 46: Overview of the General Insurance Industry in India
Overview of the General Insurance Industry in India 8 45
Slide 47: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP (CY20) Non-Life Insurance Density (Premium per capital) (CY20) (US$) (US$) 5754 9.00 5.20 2.50 2.40 2.30 1619 1.90 1.80 1.00 1.00 949 951 0.50 214 124 120 105 21 19 UK Brazil Japan Russia India USA
Slide 48: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years (Rs In Cr) CAGR (Last 15 Years) = 16% Growth of 13.8% over Q1 FY22 1,89,302 1,98,724 1,70,036 1,50,572 1,28,213 77,541 84,686 96,394 47,355 58,357 69,086 44,436 38,400 16
Slide 49: Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 38.9% share of the overall GWP Claims ratio is expected to stay flat for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims
Slide 50: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Working well Requiring Tweaks Yet to Take Off Mandatory Long term Third Party Insurance Crop Insurance Amendments to the Motor Vehicle Act 3 years for Cars, 5 years for 2W Claim ini
Slide 51: Overview of the Company
#pledgé2protect Overview of the Compan: &} Chola Ee murugappa Financial Holdings 50 SAPP:
Slide 52: Diversified Retail Revenue Stream, ensuring lesser dependency
Diversified Retail Revenue Stream, ensuring lesser dependency Motor constitutes 66% of the GWP diversified Multi-channel model ensures lesser concentration / across usage (CV, PV and TW) & diversified revenue stream Q1 FY’22 GWP by Product Q1 FY’22 GWP by Channel Others, 3.9% Others, 0.4% Individual
Slide 53: LOB Wise - Quarterly Growth Trends
LOB Wise - Quarterly Growth Trends Other Particulars Months Fire Comml Motor HAT Crop Others Total Lines In Q1, Chola MS April'21 3.0% 33.7% 43.3% 22.9% -86.8% 9.6% 19.8% • Overall growth at 4.7% May'21 4.7% 31.2% -14.0% 29.5% 54.1% 1.8% 7.2% Industry Jun'21 5.9% 24.3% -3.6% 28.9% -65.4% 0.4% 4.9% •
Slide 54: Current Partnerships (1/2)
Current Partnerships (1/2) Banks 8 Small Finance Bank/Gramin Banks NBFC’s 53
Slide 55: Current Partnerships (2/2)
Current Partnerships (2/2) OEM Private Cars 8 OEM Others Digital 54
Slide 56: Key Investment Highlights
Key Investment Highlights 8 55
Slide 57: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth Q1 FY’22 Solid GWP growth over the last 10 years 8th Largest Private Insurer High growth over the last 5 years Rs In Crs (CAGR 2015-2021 = 15.1%) by GWP 4103 4429 4398 4388 3133 2452 3602 3992 4379 4386 2313 2851 900 139 282 8 4.8% market 50
Slide 58: Volumes Sustained Despite Stress in Financier Partners
Volumes Sustained Despite Stress in Financier Partners GWP Mix% 18.1% 15.8% 8.1% 11.5% 19.0% 22.8% 28.6% 30.5% 20.5% 31.6% 15.7% 14.9% 17.2% 19.2% 20.4% 8 45.7% 46.5% 46.1% 38.8% 29.0% FY'18 FY'19 FY'20 FY'21 Q1 FY'22 Financers OEM Agency Others ▪ Due to economic slowdown, volumes from financiers ar
Slide 59: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs 189 165 Commercial 141 17% 100 100 57 67 Retail 83% 8 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Q1 FY'22 Significant growth in retail oriented policies Balanc
Slide 60: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system Private GI Market Share by GWP 0.0% 2.3% 10.1% 16.4% 22.4% 22.1% 20.5% 22.1% 8.3% 25.4% 8.2% 29.8% 7.8% 77.4% 75.6% 67.9% 7.4% 7.4% 7.3% 8 58.2% 7.0% 49.7% FY'15 F
Slide 61: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment Health/ PA Segment GWP grew at 18% CAGR (FY2015-21) Significant traction in Motor CAGR = 34.2% # Policies in 000s GWP Rs In Crs (FY’2015-21) 5,299 663 623 561 3,597 243 1,992 135 1,243 8 909 FY'15 FY'19 FY'20 FY'21 Q1 FY'22 FY'15 FY'19 FY'20 FY
Slide 62: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment GWP Mix% 5.5% 1.9% 2.1% 11.0% 11.1% 9.0% 12.1% 11.3% 9.0% 16.7% 24.1% 10.3% 67.4% 73.5% 8 70.3% 64.9% FY'19 FY'20 FY'21 Q1 FY'22 MOTOR COMMERCIAL HEALTH OTHERS ▪ In FY19, Crop Insurance premium accounted for ~10% of the topline which was discon
Slide 63: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (Chola Finance + Coromandel+ CIE) (IBL + Toyota) (PSU Banca, NBFC, OEM) 32.3% of 16.9% of FY21 GWP 26.2% of FY21 GWP Q1 FY22 GWP GWP Rs In Crs CAGR = 38.8% GWP Rs In Crs GWP Rs In Crs 123
Slide 64: Pan India Multi-channel distribution network
Pan India Multi-channel distribution network Jammu & Kashmir Offices as on Jun’21 1 Punjab 1 Himachal Pradesh 1 132 471 12 Chandigarh Chola MS branches Digitally Enabled Offices Uttrakhand 1 Haryana across India (Chola Insurance Xpress) 1 Delhi 1 Rajasthan Uttar Pradesh 1 Sikkim Assam 3 7 2 39 Bihar
Slide 65: Strengths in Bancassurance
Strengths in Bancassurance Chola MS - No 2 in GI Bancassurance Space (Non Captive) – FY’21 The First 5 The Next 5 The Rest 2337 All Figures In Rs. Cr 1569 1247 1206 1097 1087 285 279 215 8 128 95 80 55 50 26 9 4 1 0 Bharti Axa Magma HDI Oriental Shriram Godigit ICICI HDFC Ergo Chola MS Reliance Nati
Slide 66: Superior Claims Management Process
Superior Claims Management Process 10,000+ 9,500+ 94% Network of cashless Network of cashless In-house claims garages hospitals assessment 80% 54% Industry highest Cost savings due to negotiated early and out of 8 settlement in TP court settlement High settlement ratio in OD Highest settlement in TP
Slide 67: Tech Enablers across the value chain
Tech Enablers across the value chain Channels Platforms Service Improvement (Products & Services) (Scale, User Experience) (Productivity, Ease of use) ▪ ~93% of monthly policy issuance is through ▪ Introduced Phoenix as new microservices ▪ RPA bots enabling 25+ processes in finance, system integrate
Slide 68: Glimpse of new Tech & Digital Capabilities across the value chain (1/2)
Glimpse of new Tech & Digital Capabilities across the value chain (1/2) Distribution Build Sales Fulfilment Underwriting SME Commercial Tailor UW OCR End to End Digital Policy Issuance Health Rules Assets Health Pre Policy Onboarding of agents Health Policy Engine (UW & (Prospecting, lead, COP, Issu
Slide 69: Glimpse of new Tech & Digital Capabilities across the value chain (2/2)
Glimpse of new Tech & Digital Capabilities across the value chain (2/2) Claims Renewals Operations & Servicing Provider Portal RPA for Claims, AI based Health Claim Workflow NRLMS proctoring for new Assets AI based Motor Finance, Renewal Lead Claims OCR Claim Adjudication Management & Operations hir
Slide 70: Robust Enterprise-wide Risk Management Framework
Robust Enterprise-wide Risk Management Framework Claims Risk Active Fraud Control Unit, Fraud Analytics, Centralised verification of all motor claims Underwriting Client wise and location wise monitoring of risk accumulation on monthly basis Business sourcing Focus on diversification across channels
Slide 71: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2018-19 2019-20 2020-21 Q1 2021-22 No’s in Number of Customers 100 141 165 189 lacs No’s in Number of policies issued 29 45 63 14 lacs Chola MS Branch No’s 90 135 141 132 Chola Insurance Xpress Outlets No’s 469 510 471 471 8 PSB Branches No’s 19000+
Slide 72: Financial Summary
#pledgePprotect Ch Ss ‘ial Summary &} Chola Ee murugappa Financial Holdings 71 SAPP:
Slide 73: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 18.7% 30.9% 16.2% 6000 4824 4705 35.0% 14.9% 5000 4429 4398 4400 30.0% 13.0% 4103 25.0% 4000 9.8% * 20.0% 3000 8.0% 6.0% 4.7% 904 12.9% 15.0% 10.0% 7.8% * 5.9% 6.3% 993 2000 -0.7% 0.0% 5.0% 1000 -2.5% 0.0% 0 -5.0 % #3 FY'19
Slide 74: Top 10 Private companies LR & COR – FY'21
Top 10 Private companies LR & COR – FY’21 NIC/NEP Acq costs CoR After Insurers Motor + EOM / Strain On LRs, Health Fire PA Overall NEP OD TP Chola MS compares ICICI Lombard 62.2% 69.7% 89.0% 63.7% 24.2% 68.6% 33.3% 101.9% favourably Bajaj Allianz 54.0% 78.1% 81.7% 54.5% 44.2% 68.5% 28.4% 96.8% On Ac
Slide 75: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) FY’20 FY’21 Q1 FY’22 Particulars – In Rs. Cr FY18 FY19 FY’20 FY’21 IND AS IND AS I GAAP IND AS Gross Written Premium 4103 4429 4398 4824 4388 4705 904 993 Net Earned Premium 2824 3050 3437 3437 3202 3202 837 837 PBT 347 257 260 216 375 367 37 38 PAT 243 179 149 125 282 276
Slide 76: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 C Govt Sec 1303 1623 2623 4155 4074 20.5% 21.3% 28.1% 37.7% 36.5% S Govt Sec 805 1436 3693 3508 3371 12.7% 18.9% 39.6% 31.8% 30.2% Housing sector 1040 1027 620 955 1242 16.4% 13.5% 6.6%
Slide 77: Stage 3 - Provisions & Write off (Rs. in Crs)
Stage 3 - Provisions & Write off (Rs. in Crs) Provision Net Exposure Int. Acc. Total % on Name of the Issuer Exposure ECL Write off (Post But not due Impairment Gross Impairment) exposure DHFL 156.70 24.13 46.88 96.40 143.28 37.55 79.23% ILFS 106.97 17.80 21.11 82.69 103.81 20.97 83.19% IFIN 59.99 5
Slide 78: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–40907638 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 77
Slide 79: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 80: Thank You
Financial Holdings Thank You ake murugappa
Cholamandalam Financial Holdings — Q1 FY22 Earnings Presentation on 6ix