Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q1 FY2019 Earnings Presentation
34 slides from Bajaj Finserv's earnings presentation, Jul 19, 2018
Slide 1: Exchange filing cover letter for Q1 results presentation
~BAJAJ \Iii FINSERV 19 July 2018 To To 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 Co
Slide 2: Bajaj Finserv Limited Investor Presentation – Q1 FY19
BAJAJ FINSERV LIMITED Investor Presentation – Q1 FY19* * Financial year 2018-19
Slide 3: Bajaj Finserv – A diversified financial services group
Bajaj Finserv – A diversified financial services group 54.99% 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: Adoption of Ind AS Accounting standards
Adoption of Ind AS Accounting standards • Bajaj Finserv has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2018 • Insurance companies’ stand-alone numbers are as per Indian GAAP as Ind AS is not applicable to them. However, for consolidation purposes, they have provided Ind
Slide 5: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights All Figures in Rs Million Performance Highlights of Q1 FY19 over Q1 FY18 (Ind AS) CY 87,711 19,903 8,258 28,858 16% 58% 41% 4% PY 75,356 12,591 5,845 27,699 Total Revenue Profit before Tax PAT Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) •
Slide 6: Consolidated profit components
Consolidated profit components All Figures in Rs Million Consolidated profit components for Q1 FY19 (Ind AS) Intercompany adjustments Bajaj Finserv- Standalone - Others 60 Life 8,258 Insurance - Bajaj Finserv General - Insurance 1,352 Consolidated Bajaj Finance 2,249 4,597 Consolidated profit compon
Slide 7: Q1 FY19 Highlights
Q1 FY19 Highlights All Figures in Rs Million Highlights of Group Companies BAJAJ FINSERV$ Q1 FY19 Q1 FY18 Growth BAJAJ FINANCE$# Q1 FY19 Q1 FY18 Growth Total Revenue 87,711 75,356 16% AUM 933,139 689,454 35% Net worth (Cons) 209,196 167,203 25% Total Income 39,413 28,339 39% PAT 8,258 5,845 41% PAT
Slide 8: Bajaj Finance Limited
BAIA FINSERV Bajaj Finance Limited
Slide 9: 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 10: 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 28.28 Mn. and Cross sell client base above customers of 16.55 Mn. Strong focus on cross s
Slide 11: Bajaj Finance’s businesses
Bajaj Finance’s businesses BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and-spoke electronics, digital SMEs with an average products covering short, model in 693 locations products & furniture annual sales of around medium and
Slide 12: Bajaj Finance – Q1 highlights
Bajaj Finance – Q1 highlights All Figures in Rs Million Performance Highlights of Q1 FY19 over Q1 FY18 (Ind AS) CY 899,037 39,413 8,359 38% 39% 81% PY 651,837 28,339 4,609 Book Size Total Income Profit After Tax CY 1% 5.2% • Borrowing mix is not excessively dependent on banks. (Mix of 30 : 61 : 9 be
Slide 13: 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 Q1 FY19 899,037 127,719 808,158 Increase by 38% 651,837 Q1 FY19 Increase by 39% 39,413 28,339 FY18 Q1 FY18 Q1 FY19 FY18 Q1 FY18 Q1 FY19 Net Interest Income 81,503 Q1 FY19 Increase by 46% 25,777 17,6
Slide 14: Portfolio quality continues to be good, operating costs under control
Portfolio quality continues to be good, operating costs remain under control with profitability All Figures in Rs Million Loss Provision and Net NPA% 11,000 10,349 2.0% 10,000 9,000 8,000 7,000 6,000 3,268 5,000 4,000 3,051 0.44% 3,000 2,000 0.53% 1,000 0.38% 0 0.0% FY18 Q1 FY18 Q1 FY19 Loss Provisi
Slide 15: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 14
Slide 16: BAGIC - Key Strategic Differentiators
BAGIC - Key Strategic Differentiators STRATEGY Strategy is to focus on retail product lines, with diversified distribution supported by prudent underwriting and strong cash flow generation, while delivering excellence in customer service. DIFFERENTIATORS “Number 1 in Profits and Number 2 in GWP amon
Slide 17: Bajaj Allianz General – Q1 highlights
Bajaj Allianz General – Q1 highlights All Figures in Rs Million Performance Highlights of Q1 FY19 over Q1 FY18 CY 24,294 17,308 16,121 2,911 23% 15% 21% 36% PY 19,732 14,994 13,339 2,133 Gross Written Net Written Premium Net Earned Premium Profit After Tax Premium Ex Crop GWP was Rs. 24,192 Mn in
Slide 18: BAGIC has maintained Combined ratio below 100%
BAGIC has maintained Combined ratio, below 100% on a sustained basis Combined Ratios (Including Motor TP Pool Losses) 98.1% 96.7% 99.3% 96.8% 95.8% 92.3% 90.2% FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 1. Combined Ratios are in accordance with the Master Circular on ‘Preparation of Financial statemen
Slide 19: BAGIC retains its position among top private insurers in Gross Premium
BAGIC retains its position among top 2 private insurers in terms of Gross Premium Industry GDPI Trend FY18 growth 18% Q1 FY19 growth 11% (Rs. Bn.) 1,415 1,199 916 737 729 803 647 597 378 439 297 343 329 364 602 678 197 350 386 425 477 164 165 167 FY13 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 PSU Pri
Slide 20: Strong profit growth resulting in high efficiency of capital
Strong profit growth resulting in high efficiency of capital All Figures in Rs Million PAT CAGR of 23% between FY14 – FY18 PAT 9,212 7,278 5,623 5,642 36% increase 4,090 2,911 2,133 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 No Capital infusion since FY08 BAGIC - Capital Invested - Networth Accumulate
Slide 21: BAGIC has a balanced business mix
BAGIC has a balanced business mix Business Mix 9% 9% 10% 9% 8% 12% 10% 8% 6% 2% 18% 19% 20% 18% 16% 16% 20% 9% 6% 6% 13% 14% 5% 11% 23% 6% 6% 7% 9% 5% 6% 5% 5% 59% 55% 56% 46% 44% 50% 44% FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 Motor (Retail) Health (Retail) Group Health Prop, Liability, Engg Agri
Slide 22: BAGIC’s Channel Mix: Bancassurance strengthening
BAGIC’s Channel Mix : Bancassurance strengthening Channel Mix 7% 5% 8% 7% 11% 13% 12% 9% 13% 7% 19% 20% 21% 24% 20% 16% 28% 18% 26% 31% 40% 42% 36% 32% 35% FY16 FY17 FY18 Q1 FY18 Q1 FY19 Brokers Direct Business Individual Agents Corporate Agents - Others Corporate Agents - Banks Focus on Bancassur
Slide 23: BAGIC’s AUM continues to grow
BAGIC’s AUM continues to grow AUM(cash and investments) - Rs Billion (as of end of period) Q1 FY19 Increase by 28% FY18 Increase by 150 37% 148 BAGIC continues to 117 grow its AUM strongly 108 92 Investments are largely in 79 fixed income securities 70 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 22
Slide 24: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 23
Slide 25: BALIC – Key Strategic Differentiators
BALIC – KEY STRATEGIC DIFFERENTIATORS STRATEGY • Balance growth with balanced product mix, seeking steady increase in market share. • Business construct is to balance customer value with shareholder returns, focusing on New Business Value DIFFERENTIATORS “Consistently among the top 5 private insurer
Slide 26: Bajaj Allianz Life – Q1 highlights
Bajaj Allianz Life – Q1 highlights All Figures in Rs. Million Performance Highlights of Q1 FY19 over Q1 FY18 CY 2,829 4,247 6,409 13,614 2% 9% 36% 18% PY 2,781 3,905 4,711 11,536 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 1,462 532,192 770% Solvency Ratio as on -26% 30 Jun
Slide 27: Productivity has improved strongly
Productivity has improved strongly All Figures in Rs. Regular Premium Ticket Size Regular Premium Ticket Size Q1 FY19 increase by (Agency) 17% FY18 Increase by 18% 48,031 62,858 45,449 59,084 41,026 50,165 50,013 37,066 FY17 FY18 Q1 FY18 Q1 FY19 FY17 FY18 Q1 FY18 Q1 FY19 FY17 FY18 Q1 FY18 Q1 FY19 FY
Slide 28: Efforts to improve Persistency paying off
Efforts to improve Persistency paying off Persistency 13th Month Persistency 25th Month 77% 73% 58% 58% 68% 68% 51% 51% 63% 48% Persistency - 13th Month Persistency - 25th Month FY16 FY17 FY18 Q1 FY18 Q1 FY19 FY16 FY17 FY18 Q1 FY18 Q1 FY19 Persistency 37th Month 49% 42% 44% 45% 39% Persistency - 37t
Slide 29: BALIC’s Individual Rated premiums
BALIC’s Individual Rated premiums All Figures in Rs Million FY18 Increase Individual Rated NB Agency Individual Rated NB by 38% FY18 Increase 11,065 by 31% 8,476 10,101 Q1 FY19 Increase 13,972 Q1 FY19 decrease by 2% 12% 2,781 2,829 2,406 2,128 FY17 FY18 Q1 FY18 Q1 FY19 FY17 FY18 Q1 FY18 Q1 FY19 Inst
Slide 30: Diversified product mix with greater mix of traditional business
Diversified product mix with greater mix of traditional business Individual Rated NB Product Mix (Annual) Individual Rated NB Mix (Quarterly) 3% 5% 7% 5% 4% 19% 24% 35% 25% 42% 78% 70% 72% 61% 51% FY16 FY17 FY18 Q1 FY18 Q1 FY19 Individual - Unit Linked Individual - Par Individual - Non Par Individua
Slide 31: BALIC is amongst the most capital efficient private insurers
BALIC is amongst the most capital efficient private insurers Net worth (Rs. Mn.) • BALIC’s accumulated profits are 86% of the Net worth as 92,182 93,813 at 30 Jun 2018 84,756 86,715 76,315 • No Capital infused after FY08 67,490 58,708 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 AUM (Rs. Bn.) • Q1 FY19
Slide 32: Assets Under Management are significant
Assets Under Management are significant AUM as of end of period in Rs Billion AUM (Mix) 306 313 291 279 249 213 217 219 214 214 219 209 192 175 FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 Unit Linked Other than Unit Linked Of the UL Funds of Rs.219 Billion, 59% is equity funds as on 30 Jun 2018 31
Slide 33: 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 34: Thank You
BAJAJ FINSERV Thank You 33