Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q3 FY22 Earnings Presentation
71 slides from Cholamandalam Financial's earnings presentation, Feb 12, 2022
Slide 1: Cover letter to stock exchanges: Presentation to Analyst / Investor
February 12, 2022 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
Slide 2: Corporate Presentation – Q3-FY22
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q3-FY22 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 121 Years of $4.2 $22.4 Turnover cap (as on 31st Years Existence B B (FY21) Dec 2021) Listed 3 Sectors 29 Businesses 10 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 30,183 52,461 54,930 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 22,177 8,066 18,635 33,827 42,723 NA 12,207 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 (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.42% 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
Shareholding pattern Institutional Holders (More than 1%) Shareholding Pattern as of December 31, 2021 Top Domestic Institutional Holdings * ICICI Mutul Fund 12% * Aditya Birla Mutul Fund * HDFC Mutul Fund 15% 49% * Nippon India Mutual Fund * Franklin India Mutul Fund 24% Top Foreign Institutional H
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q3 FY22 3,727 543 13.26 2% 19% 17% Q3 FY21 3,645 455 11.34 Rs.in Cr. Revenue Profit after tax EPS (Rs.) Networth YTD-Dec-21 10,902 1,553 38.27 Dec-21 12,990 3% 14% 5% 0 YTD Dec-20 10,382 1,550 39.46 Mar-21 11,359 7
Slide 9: Performance Highlights - Consolidated Profit After Tax
Performance Highlights - Consolidated Profit After Tax 1,553 1,550 1,700 Q11,600 FY22 Q1 FY22 Q1 FY21 1,500 85 1,400 284 1,300 1,200 1,100 1,000 900 653 800 543 590 700 1,473 505 455 600 1,276 37 357 500 16 153 46 85 400 618 32 300 527 200 410 422 444 328 100 - -5 -10 -0 -1 -2 -2 -3 -7 -100 YTD Dec-
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) YTD Dec-21 YTD Dec-20 CIFCL YTD Dec-21 YTD Dec-20 Income 33 7 Disbursements (Rs. in Cr) 22,772 17,972 As of As of Expenses 9 18 31-Dec-2021 31-Dec-2020 Profit Before Tax 24 (10) AUM (Rs. in Cr) 79,161 75,813 Tax Expense 4 - No
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars December 31, March 31, 2021 2021 Owned Funds (A) 1,150.81 1,140.74 Adjusted Networth (B) 10,979.71 7,983.39 Risk Weighed Assets ( C) 1,282.95 1,290.11 Outside Liabilities (D) 161.76 162.19 Net assets (E) 1,282.18 1,279.35 Investment in equity
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) *22,272 107 1,129 * 17,972 4,881 0% 1% 1% 5% 5% 6% 6% 5% 4% 6% 5% 1,004 5% 17% 18% 21% 16% 20% 24% 21% 2,871 * 10,430 106 * 8,706 437 1 * 7,926 2,241 494 16,654 90% * 6,457 2,051 434 78% 74% 71% 77% 73% 78% 1,408 14,096 73% 381 * 3,589 * 3,635 1,29
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 72,724 * 67,821 * 70,023 * 68,745 94 * 67,182 1 5,039 0% 0% * 63,501 4,765 5% 7% 5% 7% 5% 7% 4,402 3,630 3,932 3,302 14,877 16,916 21% 22% 22% 23% 22% 14,288 15,971 23% 15,015 13,371 49,264 49,2
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *11,074 1457 *10,421 164 *9,887 164 *9,409 1272 164 *8,987 *8,595 164 164 164 10,909 9,723 10,256 8,823 9,245 607 8,431 524 431 432 409 327 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 FY21 FY2
Slide 16: Stage 3 Assets Trend
Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of December’21 is at 8.53% and 5.76% respectively 15
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q3FY22 Performance
Vehicle Finance: Q3FY22 Performance Disbursements • Disbursements grown by 26% in Q3 FY 22 as compared to Q3 FY 21. Assets under management • AUM have grown by 1% YoY Loss and • Loan losses improved to 1.4% from 3.0% in Q3 of FY 21 provisions Profit before tax • PBT grew by 68% in Q3 FY 22 as compar
Slide 19: Sector outlook – Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry had a de-growth of 13% in Q3 • More than 80% of our branches are present in the FY’22 & a marginal growth of 1% as of YTD Dec’21. rural areas, towns and semi urban areas which gives The sales momen
Slide 20: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position ▪ The Heavy commercial vehicle segment had a • Our exposure in this segment is around 8% at a growth of 25% in Q3 FY’22 & 87% growth as of YTD portfolio level. We are closely monitoring this Dec’21 on account of a very l
Slide 21: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Two-wheeler industry had a de-growth of 25% in • The company intends to maintain its focus on two- Q3 FY’22 & 6% de-growth as of YTD Dec’21. The wheeler funding with a clear eye for credit semiconductor issue had a
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 85,135 1,59,887 Chola @ 15% Chola @ 25% 66,358 (6%) 58,747 1,06,964 52,862 97,398 99,277 50,490 92,857 Q3 FY'19 Q3 FY'20 Q3 FY'21 Q3 FY'22 Q3 FY'26 (E) Q3 FY'19 Q3 FY'20 Q3 FY'21 Q3 FY'22 Q3 FY'26 (E)
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) 1,01,436 (in Units) Chola @ 84% Chola @29% 14,46,211 CAGR @ 10% 66,985 (15%) 51,137 8,97,983 7,84,612 7,86,477 7,61,478 40,765 37,186 Q3 FY'19 Q3 FY'20 Q3 FY'21 Q3 FY'22 Q3 FY'26 (E) Q3 FY'19 Q3 FY'20 Q3 F
Slide 24: 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 25: 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 26: Vehicle Finance - Disbursement/Portfolio Mix – Q3FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q3FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 6% Kerala Kerala 6% 6% 5% 10% Puducherry 6% Puducherry Gujarat 10% 4% 5% 0% Telangana Telangana Gujarat
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q3FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q3FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE CE 1% 4% 0.3% 9% 6% LCV 6% 2 Wheeler 2 Wheeler 18% 7% 4% LCV 21% MUV 8% Used Vehicles 27% CAR Used Vehicles MUV 10%
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 7,647 447 6% 8% 6% 6% 6% 333 3% 4% 5% 5% * 6,084 * 6,153 * 6,161 7% 1,332 16% Yield Low 397 18% 19% 17% 383 504 164 279 20% 413 5% 569 7% 944 8% 8% 1,158 9% Mediu Yield 1,231 776 6%
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 6% 6% 6% 6% 6% * 49,936 * 50,415 50,675 Medium Yield Low Yield * 48,403 * 49,285 10% 9% 9% 9% 8% 2,882 3,069 3,189 2,982 3,083 5,041 4,882 3,937 4,560 4,313 20% 21% 21% 21% 21% 10,472 10,568 10
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 49,936 * 50,675 *48,403 *49,264 *49,285 *46,828 891 1,910 1,103 1,692 1,295 2,054 16,654 14,096 47,108 47,354 48,182 48,244 49,785 44,775 7,647 6,161 6,084 4,781 3,231 2,846 Q1 Q1 Q2 Q2 Q3
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 24% 1,369 5,719 5,493 1,108 68% 591 521 440 1,905 1,885 1,892 1,922 1,922 359 1,686 309 258 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 FY21 FY22 FY21 FY22 FY21 FY22
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q3 FY22 Performance
Loan Against Property – Q3 FY22 Performance Disbursements • Disbursements grown by 39% in Q3 FY 22 as compared to Q3 FY 21. Asset under • AUM have grown by 12% YoY. management • Loan losses increased to 1.4% from 1.2% in Q3 of FY 21 which is due Loss and provisions to additional overlay provisions c
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • MSME sector witnessed high impact of the first • On back of improved economic activities, and second wave of the pandemic in fiscal 2021 Business has witnessed increased demand for and in Q1 fiscal 2022 respectively. However,
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 59% * 16,218 3,884 * 15,421 * 14,513 * 14,457 1,680 * 13,866 1,828 * 13,109 1,961 2,218 2,351 2,427 2,436 65% 39% 14,537 1,736 1,763 13,592 12,552 12,239 11,516 10,683 1,265 1,052 119 3
Slide 36: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 298 1,345 1,208 238 130 470 103 432 442 423 87 386 399 86 65 65 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q3 FY22 Performance
Home Loans – Q3 FY22 Performance Disbursements • Disbursements grown by 1% in Q3 FY 22 as compared to Q3 FY 21 Asset under • AUM have grown by 28% YoY. management Loss and provisions • Loan losses at 1.2% in Q3 FY 22 as compared to 2.8% in Q3FY 21. Profit before tax • PBT grew by 154% in Q3 FY 22 as
Slide 39: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have material under construction • Despite the Covid wave 3 Affordable housing demand exposure to developer supplied houses is expected to remain intact as economic disruptions • Chola’s LTV at a portfolio
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *5,039 *4,765 1,129 *4,402 553 579 1,004 602 *3,932 *3,630 *3,302 643 668 688 4,486 4,186 494 3,801 434 437 3,288 381 2,962 2,613 190 199 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY21 FY22 FY21
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 492 89% 148 367 78 154% 164 174 55 154 51 124 132 41 111 28 29 22 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 FY21 FY22 FY21 FY22 FY21 FY22 Dec20 Dec21 40
Slide 42: Funding Profile
Funding Profile <&} Chola aXe 41 Murugappa Financial Holdings
Slide 43: 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 19.63 19.79 17.36 5.41 3.93 2.48 2.96 2.99 4.92 15.28 15.14 16.60 16.67 16.80 12.44 FY19 FY20 FY21 Q1FY22 Q2FY22 Q3FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Lo
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 62,047 * 63,730 * 63,197 * 62,309 * 65,806 7% 4% 5% 7% 7% 2% 3% 2% 2% 2% 6% 7% 6% 6% 5% 6% 6% 6% 7% 7% 2% 3% 3% 2% 2% 13% 14% 14% 15% 14% 57% 55% 58% 55% 57% 7% 7% 6% 7% 6% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Tier II Capit
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 62,047 * 63,730 * 63,197 * 62,309 * 65,806 6% 7% 6% 6% 5% 2% 2% 2% 4% 2% 3% 1% 2% 2% 2% 6% 6% 6% 6% 7% 65% 66% 63% 66% 67% 1% 3% 1% 1% 4% 1% 4% 4% 4% 4% 10% 9% 8% 11% 11% 3% 2% 3% 2% 3% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Tr
Slide 46: ALM Statement as of 31st Dec 2021 (As per IND AS)
ALM Statement as of 31st Dec 2021 (As per IND AS) (₹Cr) ALM snapshot as on 31st Dec 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 2,440.64 175.00 1,137.59 1,012.45 53.60 232.71 194.28 1,071.22 6,317.49 Advances 2,177.95 2,002.60 1,6
Slide 47: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 46
Slide 48: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) Particulars – In Rs. Cr FY’21 Q3 FY'21 Q3 FY'22 YTD Dec FY21 YTD Dec FY’22 Gross Written Premium 4388 1167 1320 3118 3442 Growth -0.2% 7.7% 13.1% -4.7% 10.4% *PBT 375 47 24 314 82 PAT 282 36 18 237 62 Networth 1885 1840 1946 1840 1946 Investment portfolio 11061 10493 12042
Slide 49: LOB Wise - Quarterly Growth Trends
LOB Wise - Quarterly Growth Trends LOB Wise - Monthly Growth Trends Other Particulars Months Fire Comml Motor Health PA Crop Others Total Lines Q1 FY'22 4.1% 30.2% 3.1% 24.9% 42.4% -56.1% 4.8% 11.1% Q2 FY'22 14.0% 20.4% 6.3% 27.5% 56.4% -9.9% 6.7% 10.7% In Q3, Chola MS Industry Q3 FY'22 8.8% 28.8% 1
Slide 50: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth YTD Dec FY’22 Solid GWP growth over the last 10 years High growth over the last 5 years (CAGR 2015-2021 = 15.1%) Rs In Crs 8th Largest Private Insurer 4429 4398 4388 by GWP 4103 3133 3119 3442 2452 3992 3602 4379 4386 2313 2851 3119 3442 139
Slide 51: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 13.1% 3442 14.9% 12.9% 16. 0% 500 0 4388 14. 0% 10.4% 14. 0% 450 0 12. 0% 400 0 350 0 7.7% 3118 10. 0% 8.0 % 12. 0% 10. 0% 300 0 6.0 % 8.0 % * * 250 0 4.0 % 200 0 -0.2% 1167 1320 2.0 % 6.0 % 3.2% 150 0 -4.7% 0.0 % 1.9% 0.9%
Slide 52: Constantly improving operating metrics
Constantly improving operating metrics YTD Dec YTD Dec Particulars 2018-19 2019-20 2020-21 FY’21 FY’22 Number of Customers (Live No in Lacs 100 141 165 166 245 Customer) Number of policies issued No in Lacs 29 45 63 44 70 Market Presence(Branch + CIE + VO) No’s 559 645 593 606 632 PSB Branches* No’s
Slide 53: Loss Ratio (%)
Loss Ratio (%) Line of Business FY2021 Q3 2021 Q3 2022 YTD Dec FY’21 YTD Dec FY’22 Motor OD 57.01% 60.91% 69.14% 49.84% 65.22% Motor TP 79.72% 83.16% 64.13% 82.80% 62.33% Health, Travel & PA 77.22% 117.78% 71.23% 71.24% 128.77% Fire 33.82% 39.13% 45.43% 42.33% 45.26% Marine 73.52% 83.92% 53.69% 74.8
Slide 54: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Category Mar-20 Mar-21 Dec-20 Dec-21 Mar-20 Mar-21 Dec-20 Dec-21 C Govt Sec 2623 4155 4053 4371 28.1% 37.7% 38.7% 36.4% S Govt Sec 3693 3508 3516 3233 39.6% 31.8% 33.6% 26.9% Housing sector 620 955 893 1029 6.6% 8.7% 8.5% 8.6% Infra sector 688 771 722 1502 7.4% 7.0
Slide 55: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system GI Market Share by GWP 74.3% 77.7% 65.4% 74.9% 63.0% 16.4% 18.1% 16.0% 23.0% 24.4% 4.9% 4.8% 25.4% 25.6% 24.8% 29.3% 29.4% 4.6% 4.5% 4.3% 58.2% 56.3% 59.3% 46.3% 4
Slide 56: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment LOB Wise Mix% Motor 9% 3% 11% 9% 13% 3% 5% 13% 14% 3% PA & Others 6% 4% 6% 7% 3% Crop 71% 31% 70% 71% Commercial 28% Health FY'21 Q3 FY'21 Q3 FY'22 YTD Dec FY'21 YTD Dec FY'22 ▪ In FY19, Crop Insurance premium accounted for ~10% of the topline
Slide 57: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commercial 245 10.1% 165 166 141 100 100 57 67 Retail 89.9% FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 YTD YTD Dec Dec FY'21 FY'22 Significant growth in retail
Slide 58: Multi-channel model ensures lesser concentration & diversified revenue stream
Multi-channel model ensures lesser concentration / & diversified revenue Stream Channel wise Mix% 1.2% 2.9% 1.0% 2.0% 1.1% Banks 5.2% 2.9% 4.0% 5.4% 5.0% Corporate Agents- Others 25.0% 22.3% 23.0% 33.7% 32.5% Corporate Agent Captive* Brokers 35.7% 35.3% 35.9% 35.5% 34.9% Internet 4.9% 8.9% 6.7% 4.0%
Slide 59: Volumes Sustained Despite Stress in Financier Partners
Volumes Sustained Despite Stress in Financier Partners GWP Mix% 18.1% 15.8% 8.1% 11.5% 12.6% 13.0% 22.8% 28.6% 30.5% 29.4% 20.5% 32.0% 15.7% 14.9% 17.2% 19.2% 18.1% 22.8% 45.7% 46.5% 46.1% 38.8% 39.8% 32.2% FY'18 FY'19 FY'20 FY'21 YTD Dec FY'21 YTD Dec FY'22 Financers OEM Agency Others* ▪ Due to eco
Slide 60: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (CIE + Chola Finance + Coromandel) (IBL + Toyota) (PSU Banca, NBFC, OEM) 34.9% of 16.5% of 29.74% of YTD Dec FY22 GWP YTD Dec FY22 GWP YTD Dec FY22 GWP CAGR = 38.8% GWP Rs In Crs GWP Rs I
Slide 61: 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 ▪ Introduced Phoenix as new ▪ RPA bots enabling 25+ processes in through system integrated channels microservice
Slide 62: 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 Tailor UW OCR Commercial End to End Digital Health Rules Health Pre Policy Policy Issuance Assets Onboarding of agents Health Policy Engine (UW & Medical Digitization API Frau
Slide 63: 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 NRLMS AI based proctoring Health Claim Workflow AI based Motor Claim RPA for Claims, Assets Renewal Lead Finance, Operations for new hires Claims OCR Adjudication Management
Slide 64: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP Non-Life Insurance Density (Premium per capital) (CY20) (US$) (CY20) (US$) 5754 9.00 5.20 2.50 2.40 2.30 1.90 1.80 1619 1.00 1.00 0.50 949 951 214 124 120 105 21 19 Brazil China Indonesia UK S.Korea
Slide 65: 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) Growth of 11.4% CAGR (Last 15 Years) = 16% over YTD Dec FY21 1,89,3021,98,724 1,70,036 1,61,081 1,50,572 1,28,213 84,686 96,394 58,357 69,086 77,541 47,355 18,
Slide 66: Motor & Retail Health are the Largest GI Segment and Continue to Grow
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 37.8% 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 67: Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR)
Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR) Growth YTD Dec FY'22 Market Last 5 years Motor Mix Heath + PA Insurers over YTD Crop Mix% Fire Mix% GWP (Rs in Crs) Share GWP CAGR % Mix% Dec FY'21 ICICI-Lombard 13311 2.8% 9.8% 11.6% 43.7% 21.3% 4.9% 16.5% Bajaj Allianz 10420 6.4% 7
Slide 68: 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 PMFBY fin
Slide 69: 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 68
Slide 70: 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 71: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
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