Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q1 FY20 Earnings Presentation
36 slides from Bajaj Finserv's earnings presentation, Jul 25, 2019
Slide 1: Exchange filing cover letter for Investor Presentation
�BAJAJ \a..JFINSERV 25 July 2019 To To Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd 1 st Floor, New Trading Ring, Exchange Plaza, 5th Floor Rotunda Building, P J Tower, PlqtNo.C-1, G Block, Dalal Street, Mumbai 400 001 -Baridra-Kur11:
Slide 2: Bajaj Finserv Limited Investor Presentation - Q1 FY20
BAJA FINSERV BAJA) FINSERV LIMITED Investor Presentation - Q1 FY20°
Slide 3: Bajaj Finserv - A diversified financial services group
Bajaj Finserv - A diversified financial services group Stent BAJAJ FINSERV / Bajaj Finance Limited [ Bajaj Allianz General / Bajaj Allianz Life * Diversified business across Insurance # Insurance # consumer, payments, rural, SME, commercial & mortgages segments * Among the top 5 private sector * Inv
Slide 4: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights : FINSERV All Figures in Rs Million Performance Highlights of Q1 FY20 over Q1 FY19 (Ind AS) cy 122,723 8,453 248,762 31,645 PY 87,711 8,258 209,196 28,858 Total Revenue PAT* Net Worth Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) * Bajaj Fin
Slide 5: Consolidated profit components
Consolidated profit components Semen All Figures in Rs Million Consolidated profit components for Q1 FY20 (Ind AS) Intercompany oo. adjustments Bajaj Finserv- Standalone P| Others Insurance (100) Bajaj Finserv General Insurance 471 Bajaj Finance 4,515 Consolidated profit components for Q1 FY19 (Ind
Slide 6: Q1 FY20 Highlights
Q1 FY20 Highlights BAJA FINSERV FAA) FINSERVE™ gH FY20 | QHFYI9 | Growth | Total Revenue 122,723 87,711 40% Net worth 248,762 209,196 19% PAT 8,453 8,258 2% #Consolidated | $ Ind AS Consoldiated Profit Components” 1% 13% H (5 0 19% ' 1 27% H 1 1 H 68% ! 56% -1% 2018-19 Q1 FY 18-19 Q1 FY 19-20 MBFL M
Slide 7: Bajaj Finance Limited
BAJAJ FINSERV Bajaj Finance Limited
Slide 8: BFL - Key Strategic Differentiators
BFL - KEY STRATEGIC DIFFERENTIATORS FINSERV STRATEGY * Diversified financial services strategy seeking to optimise risk and profit, to deliver a sustainable business model and deliver a superior ROE and ROA * Focused on continuous innovation to transform customer experience to create growth opportun
Slide 9: BFL: Business Segments
BFL : Business Segments SINGER BAJA] FINANCE (~ (> Unique hub-and-spoke ) > (* wholesale Lending > + Largest consumer Focused on affluent electronics, digital products & furniture lender in India Presence in 944 locations with 79,000+ active points of sale Amongst the largest personal loan lenders E
Slide 10: BFL - Q1 FY20 highlights
BFL - Q1 FY20 highlights FINSERV All Figures in Rs Million Performance Highlights of Q1 FY20 over Q1 FY19 (Ind AS) cy 1,251,130 58,083 11,952 PY 878,765 39,378 8,359 Book Size Total Income Profit After Tax cy 1.0% 5.9% aN 42 Borrowing mix is not excessively dependent on banks. (Mix of 37 : 50 : 13 b
Slide 11: BFL: growth momentum continues
. BAJAJ BFL : growth momentum continues FINSERV All Figures in Rs Million Total Income 185,018 127,568 Qi FY20 Increase of 47% FY18 FY19 Q1 FY19 Q1 FY20 aE Net Interest Income Increase of 4 118,782 i QI FY20 Increase of 43% 25,787 81,429 FY18 FY19 Q1 FY19 Q1 FY20 Bajaj Finance Consolidated results a
Slide 12: BFL: Strong profit growth aided by low NPA and control on Opex
BAJAJ BFL : Strong profit growth aided by low NPA and FINSERV control on Opex All Figures in Rs Million Loss Provision and Net NPA% 16,000 15,014 2.0% 14,000 i I 12,000 |) 40,305 H 10,000 ! I ven sur 1000 {| 3,268 2,000 I 0 H 0.0% FY18 FY19 QUFYI9 =~ QU FY20 mam Loss Provision (Rs. millions) —@=Net
Slide 13: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 2
Slide 14: BAGIC - Key Strategic Differentiators
BAGIC - KEY STRATEGIC DIFFERENTIATORS Strive for market share growth through a well-diversified product portfolio and multi-channel distribution supported by prudent underwriting DIFFERENTIATORS = Industry leading combined ratios consistently over Strong selection of Risk & prudent time - BAGIC’s Co
Slide 15: BAGIC: Q1 FY20 highlights
BAGIC : Q1 FY20 highlights © BAHIA | Allianz @ All Figures in Rs Million Performance Highlights of Q1 FY20 over Q1 FY19 cy 28,433 17,167 19,464 2,104 py 24,294 17,308 16,121 2,911 Gross Written Net Written Premium —_—Net Earned Premium Profit After Tax Premium = Ex Crop GWP was Rs. 27,244 Mn in Q1 F
Slide 16: BAGIC: Combined Ratio trend
BAGIC : Combined Ratio trend @ BAJA 4|Allianz@ Combined Ratio (CoR) 103.1% FY17 FY18 FY19 Q1 FY19 Q1 FY20 Impact of Odisha Floods (Fani) was Rs.300 Mn. on underwriting result during Q1 FY20 Excluding the Impact of Odisha Floods, the CoR is at 101.6% for Q1 FY20 1. Combined Ratios are in accordance w
Slide 17: BAGIC: Profit after tax and capital efficiency
BAGIC : Profit after tax and capital efficiency © BAJA 4|Allianz @ All Figures in Rs Million PAT 9,212 7,278 7,799 2,911 2,104 FY17 FY18 FY19 QI FY19 Q1 FY20 Total Capital infused is Rs.2,768 Mn Capital Invested & Networth No Capital infusion since FY08 53,710 51,640 47,759 44,664 35,346 FY17 FY18 F
Slide 18: BAGIC: Consistently amongst top private insurers in terms of Gross Premium
BAGIC : Consistently amongst top 2 private insurers in terms of Gross Premium © BAHIA | Allianz @ Industry GDPI Trend Q1 FY20 GDPI growth 12% (Rs. Bn.) 1,617 H 1,415 | 1,199 ! 930 ! = 237 ! I 364 407 602 678 687 ! ! 7a FY17 FY18 FY19 Qi FY19 Qi FY20 mPSU mPrivate Insurers’ —_ Industry BAGIC Premium
Slide 19: BAGIC: Balanced product mix
BAGIC : Balanced product mix © BA JAB Allianz @ Business Mix 9 20% 13% 15% 14% 5% 5% 44% 44% FYI7 FY18 FY19 Qi FY19 Q1 FY20 = Ex Crop GWP Growth for Q1 FY20 was 13% and for FY19 was 26% > = Others 4% 9 tee 4. BAgri (Crop Insurance) * m Prop, Liability, Engg ‘* m™ Group Health /. ° @ Health (Retail)
Slide 20: BAGIC: Channel Mix - Bancassurance strengthening
BAGIC: Channel Mix - Bancassurance @BAIA4|Altianz @ strengthening Channel Mix a 9% ™ Corporate Agents - > Banks 20% “ ™ Corporate Agents - Others Ny = Individual Agents Ne @ Direct Business m Brokers FY17 FY18 FY19 Q1 FY19 Q1 FY20 = With over 75 corporate agent bancassurance tie-ups, this channel ha
Slide 21: BAGIC - Virtual Points of Presence - An industry first
BAGIC - VIRTUAL POINTS OF PRESENCE -AN gus mse INDUSTRY FIRST VSO Success Graph 10,000 7.3% 8,000 H 5.0% H 6,000 H 7.2% 3.2% H 9 4,000 H 6.0% I I 2,000 t | ig =H FYI7 FY18 FY19 Qi FY19 Q1 FY20 m VSO GWP VSO contribution to co GWP 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% * Initiated in August 201
Slide 22: BAGIC: Assets Under Management continue to grow
BAGIC : Assets Under Management continue to @BAIA4|Altianz @ grow AUM (cash and investments) Q1 FY20 Increase of 17% over QI FY19 BAGIC 174,656 continues to grow its AUM strongly 172,367 149,732 148,229 Rs. Million Investments are largely in fixed income securities 108,291 Investment Leverage of 3.3
Slide 23: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 22
Slide 24: BALIC - Key Strategic Differentiators
BALIC - KEY STRATEGIC DIFFERENTIATORS STRATEGY * Balance growth with balanced product mix, seeking steady increase in market share of individual business * Business construct is to balance customer benefit with shareholder returns, focusing on New Business Value DIFFERENTIATORS Diversified Distribut
Slide 25: BALIC - Q1 FY20 highlights
BALIC - Q1 FY20 highlights © BAHIA | Allianz @ All Figures in Rs. Million Performance Highlights of Q1 FY20 over Q1 FY19 cy 3,322 6,678 8,227 18,367 py 2,829 4,247 6,409 13,614 Individual Rated NB Group NB Renewal Premium — Gross Written Premium cy 617 578,596 790% : = Profitability impacted due Zo.
Slide 26: BALIC: Strong ticket size
BALIC : Strong ticket size @ BAJA 45 | Allianz @ All Figures in Rs. Regular Premium Ticket Size Regular Premium Ticket Size (Agency) Qi FY20 IAD 60,823 Increase of 51% frm FY19 increase of 27% increase of 23% 56,128 FY19 Increase of 19% 74714 4 1 ” 1 ! 48,031 | 45,449 1 ' ’ ! 62,858 | rT t H 1 57,76
Slide 27: BALIC: Persistency trend
BALIC : Persistency trend © BAJA | Allianz @ Persistency 13" Month Persistency 25" Month 50% 49% 45% FY18 BS FY19 MQTFY19 © Q1FY20 79% 77% H 75% 2% 68% H 66% H H L : E L 1 I 1 I 1 I 1 I 1 I 1 t ! \ LJ FYI8. MFYI9 mQUFYI9 ~mQ1FY20 FYI8. mFYI9: mMQUFYI9 QI FY20 Persistency 37 Month Persistency 49‘ Mon
Slide 28: BALIC: Individual Rated premiums
BALIC : Individual Rated premiums © BAHIA | Allianz @ All Figures in Rs Million Individual Rated NB Q1 FY20 increase of 17% 17420, 1 13,972 H 1 1 1 1 1 2,829 3,322 1 | | FY18 FY19 Qi FY19 Qi FY20 Individual Rated NB Agency FY19 Increase of 9% Q1 FY20 decrease of 13% I 11,065 12,039 | 1 I I I {2,128
Slide 29: BALIC: Balanced product mix
BALIC : Balanced product mix © BAJA 4|Allianz @ Individual Rated Mix Share of Non-ULIP business in individual business increasing 10% 5% @ Individual - Non Par @ Individual - Par m Individual - Unit Linked FY18 FY19 Q1 FY19 Q1 FY20 Group NB Mix Share of protection business in group increasing ™ Grou
Slide 30: BALIC: Assets Under Management
BALIC : Assets Under Management @BAIA4|Altianz @ AUM (Mix) * AUM growth of 8.7% for Q1 FY20 over Q1 FY19 ' ! I ¢ Of the UL Funds of Rs.228 Bn., 566 EE 61% is equity funds as on 30 306 336 313 351 Jun 2019 (60% as on 31 Mar ! 2019 out of the UL Funds of I Rs.230 Bn.) ' I FY18 FY19 Qu FY19 Qi FY20 mUn
Slide 31: Annexure
BAJAJ FINSERV Annexure 30
Slide 32: BAGIC: Loss Triangle: Whole Account Excluding IMTPIP on Net Basis
BAGIC : Loss Triangle : Whole Account Excluding @ensasjanianz@ IMTPIP on Net Basis as at 31 March 2019 Particulars (Rs. Mn) A] Ultimate Net loss Cost - Original Estimate 33,840 11,525 12,952 13,966 17,138 24,093 27,962 31,663 35,632 42,579 52,882 B] Outstanding losses & IBNR (end of year 0) 7,848 4,
Slide 33: BAGIC: Loss Triangle: Whole Account Excluding IMTPIP on Net Basis
BAGIC : Loss Triangle : Whole Account Excluding @ensasjanianz@ IMTPIP on Net Basis as at 31 March 2019... Particulars (Rs. Mn) 31-Mar-09 and Prior A] Ultimate Net loss Cost - Original Estimate 33,840 = 11,525 12,952 13,966 17,138 24,093 27,962 31,663 35,632 42,579 52,882 p] ultimate Net Loss Costre-
Slide 34: BAGIC: Loss Triangles - IMTPIP reserving
BAGIC : Loss Triangles - IMTPIP reserving @ BAJA 4 |Allianz @ * The IMTPIP came to operation on 1% April 2007 exclusively for third party claims in respect of commercial vehicles. All insurers registered to carry on non-life insurance business including motor business were automatically required to
Slide 35: Disclaimer
on, BAJA Disclaimer FINSERV 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 se
Slide 36: Thank You
BAJAJ FINSERV Thank You 35