Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q1 FY23 Earnings Presentation
73 slides from Cholamandalam Financial's earnings presentation, Aug 10, 2022
Slide 1: Exchange cover letter: Presentation to Analyst / Investor
August 10, 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 S
Slide 2: Corporate Presentation – Q1-FY23
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q1-FY23 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 122 Years of $7.0 $23.0 Turnover cap (as on Years Existence B B (FY22) 30th Jun 2022) Listed 3 Sectors 29 Businesses 10 Companies 40 Geographical 105 Manufacturing 53,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 37,400 49,093 62,139 Turnover (Cr.) 23,431 8,432 15,049 PAT(Cr.) 1,788 1,341 2,305 Market Cap(Cr.) 26,711 9,384 14,488 31,260 50,908 NA 11,875 Turnover (Cr.) 19,068 4,363 3,290 15350 10,141 4.824 84 P
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) 45.40% 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 June 30, 2022 Top Domestic Institutional Holdings * ICICI Mutul Fund 14.42% * Aditya Birla Mutul Fund * HDFC Mutul Fund 11.82% * Nippon India Mutual Fund 48.62% * Sundaram Mutul Fund 25.14% Top Foreign Institutional
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q1 FY23 3,963 582 14.25 10% 63% 61% Q1 FY22 3,603 357 8.86 7
Slide 9: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.cr 582 Profit After Tax Q1Q1 FY22 FY22 Q1 FY21 590 0 20 357 390 29 562 190 329 -10 -0 Q1 FY23 Q1 FY22 CIFCL CMSGICL Others 8
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL Q1 FY23 Q1 FY22 Particulars (Rs. in Cr) Q1 FY23 Q1 FY22 Disbursements (Rs. in Cr) 13,329 3,635 As of As of Income 2 2 30-Jun-2022 31-Mar-2022 Expenses 2 3 AUM (Rs. in Cr) 86,703 82,904 Profit Before Tax (0) (1) No.of Branches 1,148 1,145 Tax Ex
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars June 30, 2022 March 31, 2022 Owned Funds (A) 1,187.23 1,187.17 Adjusted Networth (B) 12,962.09 12,072.90 Risk Weighed Assets ( C) 1,282.87 1,280.57 Outside Liabilities (D) 104.76 103.73 Net assets (E) 1,282.13 1,279.89 Investment in equity sha
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 35,490 2% 2% 7% 6% 2,618 5% 16% 6% 4% 5% 1,571 * 29,091 13% 14% 11% 4% 537 17% 1,505 * 26,043 5,862 624 16% 3,662 1,542 3,627 80% 78% 78% 25,439 * 13,329 72% 23,387 2,121 64% 20,249 * 3,635 478 2,169 204 199 386 8,562 2,846 FY20 FY21 FY22 Q1 FY22
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 81,925 * 76,907 2,937 1,642 5,497 * 69,996 * 67,821 0% 458 5,269 1% 2% 1% 4% 502 5% 7% 4,345 6% 7% 7% * 60,549 4,402 18,116 258 17,115 3,125 21% 21% 21% 14,777 22% 21% 14,513 12,960 52,881 55,37
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *12,316 *11,708 164 164 2147 *9,887 *9,560 164 164 *8,172 164 1515 12,152 11,543 1052 9,723 9,396 8,008 566 327 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 Reserves and Surplus Equity Share Capital * Total Networth 1
Slide 16: Chola – Stage 3 Assets Trend
Chola –Stage 3 Assets Trend Chola 44.27% 43.52% 42.93% 12.00% 41.52% 41.62% 40.69% 39.67% 38.80% 40.00% 10.00% 36.45% 35.51% 8.00% 35.00% 6.79% 6.16% 5.85% 6.00% 2.41% 30.00% 2.24% 4.37% 4.16% 3.80% 3.75% 3.96% 2.27% 4.00% 3.34% 2.98% 1.73% 1.58% 1.63% 1.75% 1.39% 25.00% 1.28% 4.38% 1.69% 2.00% 3.91
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q1 FY23 Performance
Vehicle Finance: Q1 FY23 Performance • Disbursements grew by 201% in Q1FY23 at Rs.8,562 crores as Disbursements compared to Rs.2,846 crores in Q1FY22. Assets under • AUM have grown by 14% YoY management Loss and • Loan losses improved to 2.1% in Q1FY23 from 3.8% in Q1FY22. provisions • PBT grew by 8
Slide 19: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment had a ▪ Increased demand for Light commercial vehicle will growth of 104% in Q1 FY’23. This is due to low help us garner higher volumes, however we will be base effect of the corres
Slide 20: Sector outlook – Vehicle Finance business (2/3)
Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a ▪ Our focus continues to be on retail customers growth of 41% in Q1 FY’23 due to improvement in especially in smaller towns and rural areas. We will semiconductor supplie
Slide 21: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a ▪ Our exposure in this segment is around 6% at a growth of 61% in Q1 FY’23 due to a portfolio level and our focus will be on building a predominantly low base in Q1 of last year
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) Chola @ 144% (in Units) 1,10,301 Chola @ 127% 62,541 1,06,865 1,08,688 54,819 52,705 CAGR @ 10% CAGR @ 10% 104% 54,037 25,134 20,526 7,355 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'23 YTD Mar'27 (E) Q1 FY'20 Q1 FY'21 Q1
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ 263% Chola @145% 60,905 62,340 10,43,366 41% 51,131 143% 9,11,032 CAGR @ 10% CAGR @ 20% 7,08,179 6,47,848 25,053 1,53,861 3,628 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'23 YTD Mar'27 (E) Q1 FY'2
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 – Q1FY23
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY23 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 5% Kerala Kerala 6% 5% 7% 6% Puducherry 10% Puducherry 10% Gujarat 4% 5% Telangana Gujarat 0% Telangana
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY23
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY23 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 3 Wheeler 3 Wheeler CE 0.3% HCV CE 1% 6% 6% 9% 6% 2 Wheeler 2 Wheeler LCV 8% 4% 19% LCV 21% MUV Used Vehicles 9% Used Vehicles 27% 29% MUV 7%
Slide 28: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY23
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY23 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 3 Wheeler 3 Wheeler CE 0.3% HCV CE 1% 6% 9% 6% 6% 2 Wheeler 2 Wheeler LCV 8% 4% 19% LCV 21% MUV Used Vehicles 9% Used Vehicles 27% 29% MUV 7%
Slide 29: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 8,785 * 8,562 572 502 6% 6% 6% 7% 6% * 7,647 664 556 4% 5% 5% 8% 6% 447 333 * 6,161 1,579 1,595 18% 19% 17% 18% 19% 1,332 397 279 590 8% 7% 780 8% 7% 9% 569 1,158 838 10% 956 12% 10%
Slide 30: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 55,376 * 52,881 * 50,675 3,557 6% 6% 6% 6% 6% Low Yield * 48,403 * 49,285 3,395 3,189 4,000 9% 9% 8% 7% 7% 2,982 3,083 3,914 3,937 4,560 4,313 11,630 21% 21% 21% 21% 21% 10,995 Medium Yield 1
Slide 31: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *55,376 *52,881 547 25,439 *50,415 693 23,387 1,479 *48,403 *44,206 1,295 20,249 2,056 54,829 52,187 48,937 47,108 42,150 8,562 2,846 FY20 FY21 FY22 Q1 FY22 Q1FY23 FY20 FY21 FY22 Q1 FY22 Q1 F
Slide 32: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7,721 7,440 2,054 6,624 1,287 945 1,916 2,013 480 258 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 31
Slide 33: Loan Against Property
Loan Against Property ary Colours 32
Slide 34: Loan Against Property – Q1 FY23 Performance
Loan Against Property – Q1 FY23 Performance • Disbursements grew by 462% in Q1FY23 at Rs.2,169 crores as Disbursements compared to Rs.386 crores in Q1FY22. Asset under • AUM have grown by 25% YoY. management Loss and provisions • Loan losses improved to -0.1% in Q1FY23 from 2.1% in Q1FY22. Profit be
Slide 35: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • The Overall portfolio of NBFC credit is expected to • Chola’s LAP business has witnessed strong grow at 11-12% during this fiscal and the overall growth during Q1 with the highest ever outstanding book of NBFCs is projected at
Slide 36: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 18,116 * 17,115 5,862 1,418 * 14,777 1,544 * 14,513 * 12,960 2,062 1,961 2,425 3,662 3,627 16,699 15,571 462% 2,169 12,716 12,552 10,536 386 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 F
Slide 37: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,827 1,642 475 1,479 306 244 207 518 432 65 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 36
Slide 38: Home Loans
Home Loans Primary Colours 37
Slide 39: Home Loans – Q1 FY23 Performance
Home Loans – Q1 FY23 Performance • Disbursements grew by 140% in Q1FY23 at Rs.478 crores as Disbursements compared to Rs.199 crores in Q1FY22. Asset under • AUM have grown by 25% YoY. management Loss and provisions • Loan losses improved to 0.4% in Q1FY23 from 1.9% in Q1FY22. Profit before tax • PBT
Slide 40: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position • Revival of demand was witnessed in Q1 FY23 and is • Chola is expanding its geographical footprint expected to sustain in remaining quarters of FY23. especially in the North, East & West Zones and deepening footprint in South to augment
Slide 41: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *5,497 *5,269 500 527 *4,345 *4,402 1,542 1,571 620 602 1,505 *3,125 677 4,997 4,742 3,726 3,801 2,449 478 199 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 On Book Assigned * Tota
Slide 42: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 671 215 519 357 112 87% 77 189 154 64 41 FY20 FY21 FY22 Q1 FY22 Q1 FY23 FY20 FY21 FY22 Q1 FY22 Q1 FY23 41
Slide 43: Funding Profile
Funding Profile <&} Chola aXe 42 Murugappa Financial Holdings
Slide 44: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 19.07 19.15 17.36 5.41 3.93 3.13 2.90 4.92 15.28 15.14 16.49 16.25 12.44 FY19 FY20 FY21 FY22 Q1FY23 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 63,197 * 62,309 * 65,806 * 69,174 * 73,929 4% 5% 7% 7% 2% 7% 2% 2% 2% 2% 6% 5% 6% 5% 6% 6% 6% 7% 2% 4% 7% 2% 3% 2% 2% 15% 17% 14% 14% 14% 58% 55% 57% 61% 58% 6% 7% 6% 6% 5% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Tier II Capit
Slide 46: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 63,197 * 62,309 * 65,806 * 69,174 * 73,929 6% 6% 5% 5% 6% 2% 4% 2% 3% 3% 2% 2% 2% 2% 3% 2% 5% 6% 6% 7% 66% 66% 67% 63% 69% 1% 1% 1% 1% 5% 1% 4% 4% 4% 4% 11% 11% 9% 11% 8% 3% 2% 3% 3% 4% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Tr
Slide 47: ALM Statement as of 30th Jun 2022 (As per IND AS)
ALM Statement as of 30th Jun 2022 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2022 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 3,361.54 - 21.68 196.38 - - - 1,533.41 5,113.00 Advances 3,913.09 2,557.50 5,200.49 8,421.64 13,213.01
Slide 48: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 47
Slide 49: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) Particulars – In Rs. Cr FY'20 FY’21 FY'22 Q1 FY'22 Q1 FY'23 Gross Written Premium 4398 4388 4824 900 1290 Growth -0.7% -0.2% 9.9% 4.7% 43.3% NWP 3409 3357 3572 656 932 NEP 3437 3202 3437 837 921 U/W Results -247 -287 -433 -100 -142^ Investment income (Net of other expenses)
Slide 50: 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 In Q1, Chola MS Lines Apr'22 14.8% 24.5% 29.3% 26.4% 5.4% 93.2% 18.8% 23.3% • Overall growth higher May'22 11.0% 24.5% 41.5% 17.3% -14.8% 36.1% 55.9% 24.7% than i
Slide 51: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth Q1 FY’23 Solid GWP growth over years (CAGR FY2016 - FY 2022 = 11.9% (With Crop); 13.0% (Without Crop) Rs In Crs 9th Largest 4824 Private Insurer 4103 4429 4398 4388 900 1290 by GWP 3133 2452 3602 3992 4379 4386 4824 2313 2851 139 282 501 437
Slide 52: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) FY’22 Excluding exceptional item RoNW @ 9.13% 600 0 43.3% 50. 0% 4824 45. 0% # 500 0 4398 4388 40. 0% 400 0 35. 0% 30. 0% 14.9% 9.9% 25. 0% 4.7% 9.3% 300 0 1290 20. 0% * 900 15. 0% 3.9% 200 0 10. 0% 100 0 -0.7% -0.2% 5.0 % 1
Slide 53: Constantly improving operating metrics
Constantly improving operating metrics Q1 2021- Q1 2022- Particulars 2018-19 2019-20 2020-21 2021-22 22 23 Number of Customers (Live Customer) No in Lacs 100 141 165 254 189 282 Number of policies issued No in Lacs 29 45 63 99 14 23 Market Presence(Branch + CIE + VO) No’s 559 645 593 638 624 639 PSB
Slide 54: Loss Ratio (%)
Loss Ratio (%) Loss Ratio%(NIC/NEP) Line of Business FY2020 FY2021 FY2022 Q4 FY22 Q1 FY'22 Q1 FY'23 Motor OD 61.9% 57.0% 69.8% 82.8% 56.5%* 75.8% Motor TP 90.7% 79.7% 63.4% 66.6% 61.7%* 77.6% Motor Total 83.0% 74.3% 65.1% 70.8% 60.4% 77.1% Health, Travel & PA 40.8% 77.2% 117.1% 78.9% 186.3% 55.1% He
Slide 55: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Jun-20 Jun-21 Jun-22 Jun-20 Jun-21 Jun-22 C Govt Sec 3051 4074 5905 31.1% 36.5% 45.8% S Govt Sec 4037 3371 3082 41.1% 30.2% 23.9% Housing sector 753 1204 1014 7.7% 10.8% 7.9% Infra sector* 618 765 1545 6.3% 6.9% 12.0% Approved - Other Corp Bonds 621 311 31
Slide 56: 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 83.0% 74.3% 65.1% 60.4% 77.1% 5.2% 10.1% 16.4% 23.1% 20.5% 21.8% 4.9% 22.1% 25.4% 4.8% 29.3% 29.8% 34.3% 4.7% 4.6% 67.9% 58.2% 47.6% 49.7% 4
Slide 57: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 0.4% 0.0% 0.0% 0.0% 0.0% 7.7% 6.3% 6.7% 5.7% 7.4% 10.9% 13.0% 13.4% 18.2% 18.3% 7.2% 9.4% 9.0% 10.0% 10.7% 73.8% 71.2% 70.9% 66.1% 63.6% FY'20 FY'21 FY'22 Q1 FY'22 Q1 FY'23 Motor Health Commercial PA & Others Crop ▪ Focus on Commercial business
Slide 58: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs 282 Commercial 254 14.0% 165 141 100 100 Retail 57 67 86.0% FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 Q1 FY'23 Significant growth in retail oriented pol
Slide 59: Multi-channel model ensures lesser concentration & diversified revenue stream
Multi-channel model ensures lesser concentration / & diversified revenue Stream Channel wise Mix% Corporate Agent Captive* 0.0% 0.0% 0.0% 0.1% 0.4% 0.0% Brokers 0.3% 0.4% 0.5% 3.6% 0.4% 6.7% 4.7% 4.6% 4.6% 3.6% 4.4% 5.2% 5.1% 5.2% Banks 21.2% 27.9% 22.1% 32.6% 27.5% Direct Business Corporate Agents-
Slide 60: Volumes Sustained Despite Stress in Financier Partners
Volumes Sustained Despite Stress in Financier Partners GWP Mix% 15.8% 8.1% 11.5% 12.3% 18.1% 19.0% 18.9% 28.6% 20.5% 22.8% 30.5% 31.9% 31.7% 27.7% 15.7% 14.9% 17.2% 19.2% 23.2% 22.9% 20.3% 45.7% 46.5% 46.1% 38.8% 32.6% 29.0% 30.5% FY'18 FY'19 FY'20 FY'21 FY'22 Q1 FY'22 Q1 FY'23 Financers OEM Agency
Slide 61: 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) 30.7% of 13.3% of Q1 FY’23 GWP 30.5% of Q1 FY’23 GWP Q1 FY’23 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs CAGR =
Slide 62: 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) ▪ ~94% of monthly policy issuance is ▪ Introduced Phoenix as new ▪ RPA bots enabling 25+ processes in through system integrated channels microservice
Slide 63: 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 64: 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 RPA for Claims, Assets Renewal Lead Finance, Operations for new hires Claims OCR AI based Motor Claim Management & Adjudicati
Slide 65: 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) (CY21) (US$) (CY21) (US$) 9.10 2520 5.20 1764 1039 855 2.20 2.20 2.20 1.90 1.70 1.00 0.90 0.50 229 154 130 111 22 22 China Indonesia UK Brazil USA Ja
Slide 66: 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 22.9% CAGR (Last 15 Years) = 15% over Q1 FY22 220772 189302 198724 170036 150572 128213 77541 84686 96394 47355 58357 69086 54491 38400 16000 18100 2
Slide 67: 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 39.6% share of the overall GWP Motor Claim ratio for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims Ratio) CAGR: 14% 83%
Slide 68: Industry Growth – Q1 FY'23
Industry Growth – Q1 FY’23 Addressable Market Share Preferred lines - Chola MS Industry Ex -Crop INSURER(Rs. in Mn) Growth over Q1 Growth over Q1 GWP Rs in Mn Crop Group Health Govt Health ,Group & Govt FY'22 FY'22 Health ICICI-Lombard 53703 28.2% 1405 10834 0 41465 21.4% Bajaj Allianz 31002 25.4% 1
Slide 69: Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR)
Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR) Q1 FY'23 Last 5 Growth over Market Motor Mix Heath + PA Crop Insurers GWP (Rs years GWP Fire Mix% Others Q1 FY'22 Share % Mix% Mix% in Crs) CAGR ICICI-Lombard 5370 28.2% 11.0% 17.3% 33.2% 26.8% 2.6% 21.3% 16.2% Bajaj Allianz 3100 25.
Slide 70: 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 Single Limit for Expense of Management 3 years for Cars, 5 years for 2W PMFBY
Slide 71: 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 70
Slide 72: 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 73: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
Cholamandalam Financial Holdings — Q1 FY23 Earnings Presentation on 6ix