Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q2 FY2018 Earnings Presentation
43 slides from Aditya Birla Capital's earnings presentation, 2017
Slide 1: A leading financial services conglomerate
A leading financial services conglomerate
Slide 2: Overview, Business-wise Performance, Consolidated Financials and Glossary
Overview 3–7 Business-wise Performance 8 – 34 Consolidated Financials and other annexures 35 – 42 Note 1 : The financials of Aditya Birla Capital Limited are consolidated financials prepared as per Indian GAAP unless otherwise specified Note 2 : The financial figures in this presentation have been r
Slide 3: Group structure and subsidiaries
Aditya Birla Finance 100% NBFC Limited 75% Aditya Birla Money Broking Listed Limited Housing Aditya Birla Housing 100% Finance Finance Limited 50.01% Insurance Aditya Birla Insurance Advisory Brokers Limited 2 Life Aditya Birla Sun Life 51% Insurance Insurance Company Ltd.1 100% Private Aditya Birla
Slide 4: Aditya Birla Capital Limited: 'ONE ABC'
Aditya Birla Capital Limited: ‘ONE ABC’ Adityabirlacapital.com 1800-270-7000 • ONE brand that you can trust and look for a holistic • ONE website to discover, • ONE phone number for understanding and provision purchase and get serviced all queries and requests of all your money needs for all your mo
Slide 5: Universal Financial Solution Provider
Universal Financial Solution Provider To Enable people to protect things they value Life Insurance | Health Insurance | Motor Insurance | Corporate General Insurance | Travel PROTECTING Insurance To Enable people to realize aspirations and ambitions INVESTING Mutual Funds | Wealth Management | Stock
Slide 6: Key Milestones
Key Milestones 1 Launch of Universal brand “Aditya Birla Capital” – Single brand for all money needs & solution 2 Indian Embedded Value at ` 3,810 Cr. vs. Traditional Embedded Value at ` 3,428 Cr. (FY17) 3 Highest ever domestic AAUM market share at 10.7% and highest ever equity market share at 9.0%
Slide 7: Revenue, Earnings Before Tax, Lending Book and AUM
Revenue 1 Earnings Before Tax 1 (` Crore) 3,193 5,894 388 747 318 595 2,791 5,093 Q2FY17 Q2FY18 H1FY17 H1FY18 Q2FY17 Q2FY18 H1FY17 H1FY18 Lending Book Assets Under Management 2 (incl. Housing Finance) 281,299 44,675 217,157 31,823 Q2FY17 Q2FY18 Q2FY17 Q2FY18 1 Aditya Birla Nuvo Limited transferred i
Slide 8: Performance highlights: Q2 FY 2017-18
Performance highlights : Q2 FY 2017-18 8 Copyright © 2017 Aditya Birla Capital
Slide 9: Aditya Birla Finance Limited
Aditya Birla Finance Limited
Slide 10: Aditya Birla Finance financial summary
(` Crore) FY14 FY 15 FY 16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 ∆ LY% Lending book 11,735 17,588 25,755 26,267 28,951 29,852 34,703 34,703 36,250 38,898 34% Average yield * 13.3% 13.0% 12.4% 12.0% 12.0% 11.5% 11.7% 11.8% 11.4% 11.1% Interest cost / Avg. Loan book 8.4% 8.2% 7.8% 7.8%
Slide 11: Loan book mix ₹38,898 Cr. (Sept '17)
Mid Corporate 17% Structured Finance Project Loan 1% 5% TL / WCDL 6% Cons Fin 5% Retail Digital & Unsecured 9% 3% LAP 5% TL / WCDL 13% LAS 2% Broker 1% Large Corporate 36% LAP 6% Structured Finance Loan Book Mix 8% ` 38,898 Cr. SME (Sept ’17) 25% LRD 6% Supply Chain 3% Project Loan 15% TL / WCDL 8%
Slide 12: Rating upgraded to AAA; branch expansion plan
Earnings before Tax (` Cr.) Ranks among top 5 private diversified NBFCs1, in terms of loan book 535 Long term issuer rating upgraded to ‘AAA’ by India Rating and 410 Research reflecting strong parentage and sound credit profile Optimising ALM profile ABFL continues to have well balanced ALM profile
Slide 13: Asset quality, ROE, ROA and borrowings mix
Gross NPA Net NPA ROE ROA 16.3% 16.0% 15.1% 15.4% 14.9% 14.6% 14.3% 14.7% 12.6% 0.90% 0.82% 0.71% 0.74% 0.69% 0.63% 0.47% 0.50% 0.53% 0.27% 0.29% 0.32% 0.33% 0.16% 0.22% 0.21% 0.33% 0.34% 2.1% 2.0% 2.2% 2.1% 1.9% 1.9% 2.1% 2.0% 1.7% Q2FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18
Slide 14: Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Limited
Slide 15: Aditya Birla Housing Finance financial summary
(` Crore) FY 15 FY 16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 ∆ LY% Lending book 142 1,973 2,432 2,872 3,235 4,136 4,136 4,816 5,777 2X Average yield (%) 11.2% 10.9% 10.7% 10.7% 10.8% 10.7% 10.7% 10.2% 9.9% Interest cost (%) NA 7.1% 7.9% 7.7% 7.5% 7.3% 7.6% 7.8% 7.7% Net Interest Income
Slide 16: Turned profitable; affordable housing launched
Turned profitable within 7 quarters of full operations Launched Affordable housing in June 2017 to tap future growth Gross Disbursement (` Cr) Loan Book 1,181 (` Cr) 5,777 1,069 4,816 930 4,136 790 3,235 585 594 2,872 555 2,432 463 427 1,973 1,232 880 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17
Slide 17: Rating upgrade and branch expansion
Long term issuer rating upgraded to ‘AAA’ by India Rating and (` Crore) Research reflecting strong parentage and focused growth Q2FY17 Q2FY18 ∆% strategy Revenue 74 140 2x ↑ Focus on optimal Product-Sourcing-Customer mix EBT (1) 3 ↑ Direct sourcing increased y-o-y from 39% to 44% Net Worth 365 639 7
Slide 18: Portfolio mix, geographic mix, yield and sourcing mix
Portfolio Mix Loan Book - Geographic Mix (%) Home Loan Loan against Property Construction Finance 2% 5% 6% 7% 8% 9% 12% 11% 12% 15% 35% 30% 34% 34% 35% 36% 34% 32% 31% 30% 18% 63% 62% 60% 58% 56% 57% 58% 59% 56% 38% Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 North West East South
Slide 19: Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited
Slide 20: AMC financial summary
(` Crore) FY14 FY 15 FY 16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 ∆ LY% Domestic AAum* 82,740 107,168 133,004 149,093 168,881 180,808 195,049 173,406 205,715 224,650 33% Domestic Equity AAum* 10,744 20,041 30,850 34,969 40,779 43,440 49,914 42,254 59,891 68,592 68% Total Income (Incl.
Slide 21: AAUM market share and PMS growth
4th largest in India with highest ever AAUM market share at 10.7% (PY: 10.5%) (` Crore) Ranks #4 in Equity AAUM with highest ever market share at 9.0% (PY: 8.0%) Q2FY17 Q2FY18 ∆% Industry Equity AUM grew by 49% y-o-y while ABSLAMC registered AAUM 1,83,033 2,44,609 34% ↑ 68% growth in past one year D
Slide 22: Growth in AAUM and market share
Growth in AAUM (` Cr) Share of Equity in Domestic AAUM (%) 244,609 225,176 19,959 31 210,742 29 194,925 19,461 183,033 15,693 26 14,117 23 24 23 23 24 24 153,754 152,427 163,121 14,152 150,271 14,029 16,867 17,193 15,924 156,058 145,824 145,135 128,102 137,368 103,880 104,612 114,123 102,302 59,891
Slide 23: Channel Mix and Number of Folios
No. of Folio (Mn) Channel Mix (%) – Sept ‘17 4.8 13% 4.3 4.0 3.6 43% 3.1 3.3 26% 2.8 2.9 2.7 18% Sept-15 Dec-15 Mar-16 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Sept'17 Bank IFA National Distributors Direct Copyright © 2017 Aditya Birla Capital Aditya Birla Sun Life AMC Limited 23
Slide 24: Aditya Birla Sun Life Insurance Co. Ltd.
Aditya Birla Sun Life Insurance Co. Ltd.
Slide 25: Life insurance financial summary
(` Crore) FY14 FY 15 FY 16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 FY17 Q1 FY18 Q2 FY18 ∆ LY% Individual First year Premium 879 761 711 133 176 240 411 960 170 206 17% Group First year Premium 818 1,177 1,509 321 526 304 423 1,574 251 488 Renewal Premium 3,136 3,295 3,359 654 764 706 1,064 3,190 602 716 Tot
Slide 26: Indian Embedded Value and business highlights
Indian Embedded Value at ` 3,810 Cr. vis-à-vis Traditional Embedded (` Crore) value of ` 3,428 Cr. as on 31st March 2017 Gross VNB margin at 28.87% and Net VNB margin (5.5)% H1 FY17 H1 FY18 ∆% Gross Premium Improvement in quality of business and product mix (H1 FY18) First Year 1,158 1,115 4% ↓ 13th
Slide 27: Product mix, persistency and fund performance
Individual Life (Product Mix -H1 FY18) Individual New Business Mix (H1 FY18) 5% 12% 24% 36% 19% 69% 35% Agency Third Party Direct Marketing ULIP PAR Non PAR Term Fund Performance (%) 13th Month Persistency (%) Benchmark Fund 71.5% 9.9% 70.4% 9.4% 9.7% 16.1% 8.1% 7.8%8.5% 8.8% 67.7% 7.7% 8.4% 8.4% 12
Slide 28: Indian Embedded Value components (FY17)
Indian Embedded Value– Components (FY17) (` Crore) 2,161 3,810 Time Value of Options & Guarantees 2,046 Adjusted 97 Net worth 210 Present IEV Value of Cost of Non 90 1,649 Hedgeable Risks Frictional Future Cost Profits Value of in Force Business Milliman India Pvt. Ltd. was engaged by Aditya Birla S
Slide 29: Value of New Business and VNB Margins
Value of New Business and VNB Margins – FY17 Components of VNB Amount (` Cr) Value of New Business (VNB) (A) 281 Acquisition expense overrun (B) (335) Net VNB (C = A+B) (54) Annualized new business premium (APE) 973 Gross VNB Margins (= A / APE) 28.87% Net VNB Margins (C/APE) (5.5%) Note: APE is cal
Slide 30: Reference Rates and Assets sensitivities
Reference Rates and Assets Scenarios % change in % change in IEV VNB Base value (` Cr.) 3810 281 Increase in 100 bps in the reference rates 1.65% 17.4% Decrease in 100 bps in the reference rates -1.89% -22.3% Increase in 200 bps in the reference rates 2.10% 31.4% Decrease in 200 bps in the reference
Slide 31: Expenses, Mortality and Morbidity sensitivities
Expenses , Mortality and Morbidity Scenarios % change in % change in IEV VNB Base Value (` Cr.) 3810 281 10% increase in acquisition expenses n/a -5.6% 10% decrease in acquisition expenses n/a 5.6% 10% increase in maintenance expenses -2.1% -1.6% 10% decrease in maintenance expenses 1.6% 1.6% 5% pro
Slide 32: Premium Discontinuance Rate sensitivities
Premium Discontinuance Rate Scenarios % change in % change in IEV VNB Base value (` Cr.) 3810 281 10% proportionate increase in Lapse Rates -1.1% -5.2% 10% proportionate decrease in Lapse Rates 1.2% 4.1% 50% proportionate increase in Lapse Rates -4.4% -23.6% 50% proportionate decrease in Lapse Rates
Slide 33: Other Financial Services businesses
Other Financial Services businesses
Slide 34: Health insurance with differentiated business model
Health insurance with differentiated business model Offering – Hospitalization + Incentivized wellness + Chronic benefit GWP (Rs. Crs) 96 In H1 FY18, Gross Premium written at Rs 96 Cr and over 6 lacs lives covered as on date. 54 Market share of fresh GWP during H1 at ~ 2% FY17 H1 FY18 Access – Creat
Slide 35: General insurance advisory, broking, PE and online PFM
In General Insurance Advisory, premium placement rose y-o-y by 35% to ` 779 Cr. Other Financial Services (Aggregate) (` Crore) while general insurance industry’s premium grew by 19%. Q2FY17 Q2FY18 Market share in industry’s premium placement grew to 1.98% (PY: 1.51%) Revenue 68 82 Quarterly revenue
Slide 36: Consolidated Financials and other annexures
36 Copyright © 2017 Aditya Birla Capital 36
Slide 37: Consolidated Profit & Loss Account
(` Crore) Q2 Half Year Quarter 2 Half Year (Like to Like) Consolidated (Like to Like) 2016-17 2016-17 2017-18 Profit & Loss Account 2016-17 2017-18 2016-17 (PY) # (PY) (CY) (PY) (CY) (PY) # 2,791 1,244 3,193 Revenue 2,372 5,894 5,093 907 863 1,151 EBITDA 1,682 2,208 1,746 569 569 729 Less : NBFC Int
Slide 38: Consolidated revenue by segment
(` Crore) Quarter - 1 Quarter 2 Revenue Half Year 2017-18 2016-17 2017-18 2016-17 2017-18 (PQ) (PY) (CY) (PY) (CY) 1,149 - 1,519 Life Insurance - 2,668 1,146 927 1,246 NBFC (Incl. Housing Finance) 1,782 2,392 271 243 312 Asset Management 447 583 47 28 39 General Insurance Advisory 65 86 34 33 36 Bro
Slide 39: Segment EBIT
(` Crore) Quarter - 1 Quarter 2 EBIT Half Year 2017-18 2016-17 2017-18 2016-17 2017-18 (PQ) (PY) (CY) (PY) (CY) 29 - 41 Life Insurance - 69 264 220 281 NBFC (Incl. Housing Finance) 394 544 95 67 106 Asset Management 153 201 18 8 10 General Insurance Advisory 25 27 0 2 1 Broking 0 2 (33) (8) (47) Hea
Slide 40: Revenue and EBT by business
(` Crore) Quarter 2 Half Year Revenue EBT ` Crore Revenue EBT 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 (PY) (CY) (PY) (CY) (PY) (CY) (PY) (CY) 853 1,107 221 277 Aditya Birla Finance (Incl. Wealth Division) 1 1,649 2,134 410 535 1,547 1,519 34 41 Birla Sun Life Insurance 2 2,72
Slide 41: Abbreviations
Abbreviations Description IEV Indian Embedded Value TEV Traditional Embedded Value ANW Adjusted Net Worth VIF Value of In-Force Business VNB Value of New Business MTM Mark to Market SII Solvency Two Regime RFR Risk Free Rates Copyright © 2017 Aditya Birla Capital 41
Slide 42: Aditya Birla Capital Limited
Aditya Birla Capital Limited CIN: L67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujrat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013 Website: www.adityabirlacapital.com Copyright
Slide 43: Disclaimer
The information contained in this presentation is provided by Aditya Birla Capital Limited (“ABCL or the Company”), formerly known as Aditya Birla Financial Services Limited, to you solely for your reference. This document is being given solely for your information and for your use and may not be re
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