Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q1 FY14 Earnings Presentation
38 slides from Religare Enterprises's earnings presentation, Aug 2, 2013
Slide 1: Religare Enterprises Limited Q1 FY14 Results
Religare Enterprises Limited Q1 FY14 Results 2 August 2013
Slide 2: Religare Enterprises Overview
Religare Enterprises Overview 1
Slide 3: REL Overview
REL Overview Religare is a Financial Services Holding Company with subsidiaries operating across Financial Services verticals Business Overview • Religare Enterprises Limited is a Financial Services Holding Company, with operating subsidiaries across financial services verticals in India and in sele
Slide 4: Portfolio Functions Overview
Portfolio Functions Overview REL’s primary objective is to ensure that its portfolio companies create equity value REL Structure and Functions • Religare Enterprises Limited (REL) is a Non-Operative Holding Company managed by a set of professionals and supervised by an independent Board • The busine
Slide 5: Growth in Portfolio
Growth in Portfolio REL has consistently grown its portfolio of businesses by investing in adjacencies organically and inorganically IFC investment in REL: ₹4.05 bn. PE Investments in RFL – Jacob Ballas: ₹2 bn. and Avigo: ₹1.5 bn. Invesco inducted as strategic partner in RAMC ESOP Scheme: Management
Slide 6: Consolidated Performance
Consolidated Performance 2S RELIGARE Values that bind
Slide 7: Key financial indicators – Q1 FY14
Key financial indicators – Q1 FY14 Revenue decline QOQ mainly driven by planned decline Lending revenue share lower QOQ but continues to in average lending book size dominate the mix REL Consolidated Revenue RSL+RCL REL Consolidated Revenue 13% 11% (₹ mn) RFL 64% 61% 8,599 9,124 8,662 8,487 7,986 RG
Slide 8: Consolidated Income Statement – Q1 FY14
Consolidated Income Statement – Q1 FY14 QOQ Change YOY Change (₹ mn) Q1 FY14 Q4 FY13 (%) Q1 FY13 (%) Total Income 7,986 8,487 -6% 8,599 -7% Personnel Expenses 1,635 1,456 12% 1,417 15% Operating and Admin Expenses 2,275 2,787 -18% 2,111 8% Less: Net Exp. of JV Recoverable (141) (64) nm (177) -20% To
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at June 30, 2013 As at March 31, 2013 Owners’ Funds 31,528 31,754 Share Capital 2,055 2,055 Reserves and Surplus 29,473 29,699 Minority Interest 2,097 2,135 Non - Current Liabilities 83,369 91,920 Current Liabilities 85,302 77,140 Total Liabilities 202,296 202,94
Slide 10: Performance of Portfolio Companies
Performance of Portfolio Companies 9
Slide 11: Lending: Performance Review
Lending Performance Review Net worth of Business ₹21.95 bn. Highlights SME book size of ₹96.4 bn. Religare Finvest 61% of REL’s consolidated Limited revenue (as of/q.e. 30-Jun-2013) One of India’s largest Strategic Non-Banking Improve ROE Priorities Financial Companies, Continuous focusing on the SM
Slide 12: Lending: Consolidation phase complete
Lending Consolidation phase complete Consolidation phase complete Core NIM in target band (₹ bn) SME Working Capital* SME Loan Against Property* Capital Market Lending NIM** Opex/ ANR SME CE/CV Finance* 117.0 4.02% 3.91% 4.02% 113.5 3.79% 3.86% 108.2 12.4 11.6 96.4 10.2 94.8 15.0 13.5 12.6 9.3 9.5 7
Slide 13: Lending: Financial Performance
Lending Financial Performance RFL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Total Income 4,876 5,474 -11% 5,729 -15% Operating and Administrative Expenses 736 1,016 -28% 778 -5% Personnel Expenses 273 217 26% 262 4% Total Expenses 1,009 1,233 -18% 1,040 -3%
Slide 14: Retail Broking: Performance Review
Retail Broking Performance Review Market share of Business 1.7% in equities Highlights and 2.1% in Religare Securities commodities Limited 11% of REL’s consolidated Religare Commodities revenue Limited (q.e. 30-Jun-2013) Increase A formidable retail Strategic Distribution broking platform with Prior
Slide 15: Retail Broking: Performance affected by business mix
Retail Broking Performance affected by business mix Market wide turnover growth driven by Options Religare’s business mix impacted market share (ADTO# - ₹ bn) Commodities - Futures Equities - Options (%) Market Share - Equities * Market Share - Commodities Equities - Cash Equities - Futures 1,921 2.
Slide 16: Retail Broking: Financial Performance
Retail Broking Financial Performance RSL & RCL Combined Abridged Income Statement * QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Total Income 901 1,063 -15% 1,116 -19% Operating and Administrative Expenses 468 720 -35% 567 -17% Personnel Expenses 288 267 8% 344 -16% Total Expenses 756 9
Slide 17: Capital Markets: Performance Review
Capital Markets Performance Review Business India IE cash market Highlights share of 1.3% Empanelled with Religare Capital over 620 clients globally Markets Limited (as of/q.e. 30-Jun-2013) Asia-focussed Strategic Institutional Equities Priorities Increase Market and Investment Share Banking platfor
Slide 18: Capital Markets: Creating a sustainable platform
Capital Markets Creating a sustainable platform Client empanelment Business update No. of Institutional Empanelments* Intense focus on revenue growth to accelerate path to profitability Traction in secondary commissions in the first quarter of the fiscal, strong IBD pipeline for H1 FY14 576 604 61
Slide 19: Wealth Management: Performance Review
Wealth Management Performance Review Business AUM of Highlights ₹27.4 bn. Customer base of Religare Macquarie over 4,700 Wealth Management Limited (as of 30-Jun-2013) Strategic An open architecture Increase Yield on Priorities platform targeting AUM growing affluence Increase Annuity Income 18
Slide 20: Wealth Management: Utilizing the breadth of the platform
Wealth Management Utilizing the breadth of the platform to drive future growth Client Base AUM No. of Clients (₹ bn) Total AUM 4,972 4,894 4,849 28.4 28.8 28.3 4,687 4,772 27.5 27.4 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 30-Jun-12 30-Sep-12 31-Dec-12 31-Mar-13 30-Jun-13 Relationship Manag
Slide 21: Wealth Management: Financial Performance
Wealth Management Financial Performance RMWM Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Total Income 68 75 -9% 36 88% Operating and Administrative Expenses 22 22 -2% 25 -14% Personnel Expenses 60 60 1% 64 -5% Total Expenses 82 82 0% 89 -8% EBITDA (14) (7) nm
Slide 22: Asset Management: Performance Review
Asset Management Performance Review Business Q1FY14 Average Highlights AUM of ₹138 bn. Religare Invesco Asset Continues to Management Co. Pvt. break-even Ltd. operationally Strategic Entering the next phase Priorities of growth Profitable AUM Growth 21
Slide 23: Asset Management: Entering the next phase of growth
Asset Management Entering the next phase of growth with Invesco’s induction as JV partner Industry-wide average AUM Religare Invesco MF AUM grew 25% YOY (₹ bn) Avg. Industry AUM (₹ bn) Religare - Average AUM 8,467 141 142 138 8,167 7,865 7,473 127 6,928 110 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q1FY13
Slide 24: Asset Management: Financial Performance
Asset Management Financial Performance RIAMC Abridged Income Statement QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Total Income 251 210 20% 135 55% Operating and Administrative Expenses 139 152 -9% 55 55% Personnel Expenses 193 88 119% 86 122% Total Expenses 332 240 38% 141 80% EBITDA
Slide 25: Global Asset Management: Performance Review
Global Asset Management Performance Review Business Highlights AUM of $14.0 bn. Religare Global Asset Management (as of 30-Jun-2013) Strategic Building a multi- AUM Growth in Priorities boutique Alternative existing affiliates Asset Manager Launch of organic affiliates 24
Slide 26: Global Asset Management: Financial Performance
Global Asset Management Financial Performance RGAM Inc. Abridged Consolidated Income Statement QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Total Income 1,221 1,123 9% 1,014 20% Operating and Administrative Expenses 194 138 41% 149 30% Personnel Expenses 582 552 5% 498 17% Total Expense
Slide 27: Health Insurance: Performance Review
Health Insurance Performance Review Business GWP of Highlights ₹514 mn. Over 560,000 Religare Health lives covered Insurance Co. Limited (as of/q.e. 30-Jun-2013) Strategic Positioned to capture Priorities significant Group Grow GWP with synergies efficient use of Capital 26
Slide 28: Health Insurance: Rapidly established a sizable hospital network
Health Insurance Rapidly established a sizable hospital network No. of lives covered Business Update (000s) No. of Lives Cumulative Gross Written Premium (GWP) of ₹513.6 mn in Q1FY14 • Cumulative GWP of ₹901.6 mn. in first four 563 quarters of operations • Providing health cover to over 560,000 li
Slide 29: Health Insurance: Financial Performance
Health Insurance Financial Performance RHICL Abridged Income Statement QOQ Change (₹ mn) Q1FY14 Q4FY13 (%) Gross Written Premium 514 190 170% Net Written Premium 471 168 180% Net Earned Premium 212 75 183% Net Claims Incurred 202 83 142% Net Commission 21 15 43% Operating & Administrative Expenses 7
Slide 30: Life Insurance: Performance Review
Life Insurance Performance Review Business Over 275,000 Highlights lives covered ₹5.3 bn. capital AEGON Religare Life invested by REL Insurance Co. Limited (as of 30-Jun-2013) Efficient use of Strategic Capital Pioneer in Online Priorities Achieve Distribution Breakeven Generate Equity Value above t
Slide 31: Life Insurance: Leadership in use of technology
Life Insurance Leadership in use of technology once again recognised Steadily growing customer base Premium Income split (000s) No. of Customers (₹ mn) Single Renewal First year premium 1,608 30 1,020 273 279 7 886 1,146 227 240 251 790 12 13 575 706 451 642 9 425 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1
Slide 32: Life Insurance: Financial Performance
Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q1FY14 Q4FY13 (%) Q1FY13 (%) Premiums Earned (Net) 528 1,576 -66% 759 -30% # Investment and Other Income 352 -178 -297% 111 218% Total Income 880 1397 -37% 870 1% Commission 15 58 -75% 31 -53% Operating
Slide 33: Appendix: Portfolio Companies’ Balance Sheets
Appendix: Portfolio Companies’ Balance Sheets 32
Slide 34: Portfolio Companies’ Balance Sheets (1/4)
Portfolio Companies’ Balance Sheets (1/4) RFL Abridged Balance Sheet RSL & RCL Combined Abridged Balance Sheet (₹ mn) As at June 30, 2013 (₹ mn) As at June 30, 2013 Owners’ Funds 21,951 Owners’ Funds 4,658 Share Capital 2,281 Share Capital 345 Reserves and Surplus 19,670 Reserves and Surplus 4,313 N
Slide 35: Portfolio Companies’ Balance Sheets (2/4)
Portfolio Companies’ Balance Sheets (2/4) RIAMC Abridged Balance Sheet* RHICL Abridged Balance Sheet* (₹ mn) As at June 30, 2013 (₹ mn) As at June 30, 2013 Owners’ Funds 373 Owners’ Funds 1,143 Share Capital 698 Share Capital 1,750 Reserves and Surplus (324) Reserves and Surplus (607) Non - Current
Slide 36: Portfolio Companies’ Balance Sheets (3/4)
Portfolio Companies’ Balance Sheets (3/4) RGAM Abridged Balance Sheet RMWM Abridged Balance Sheet** (₹ mn) As at June 30, 2013 (₹ mn) As at June 30, 2013 Owners’ Funds 8,597 Owners’ Funds 119 Share Capital* 239 Share Capital* 1,210 Reserves and Surplus 8,358 Reserves and Surplus (1,091) Minority Int
Slide 37: Portfolio Companies’ Balance Sheets (4/4)
Portfolio Companies’ Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at June 30, 2013 Owners’ Funds 1,030 Share Capital 12,000 Reserves and Surplus -10,970 Policyholders' Funds (including funds for discontinued policies and future appropriation) 10,422 Current Liabilities 574 Total Liabi
Slide 38: Disclaimer
Disclaimer This conference call may include forward-looking statements. These forward-looking statements are statements regarding Religare's intentions, estimates, forecasts, projections, beliefs or current expectations concerning, among other things, Religare's results of operations, financial cond