Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Investor Presentation (September 2018)
44 slides from Aditya Birla Capital's investor presentation, Sep 6, 2018
Slide 1: Investor Presentation
Investor Presentation September 2018 A leading Financial Services Conglomerate Aditya Birla Capital Limited
Slide 2: Table of contents
Table of contents 1 | Overview Pg. 3 - 10 2 | Business-wise Performance Pg. 11 - 38 3 | Consolidated Financials & Other Annexures Pg. 39 - 44 NOTE 1: The financials of Aditya Birla Capital are consolidated financials prepared as per Indian GAAP unless otherwise specified NOTE 2: The financial figure
Slide 3: A financial services conglomerate meeting the lifetime needs of its customers
A financial services conglomerate meeting the lifetime needs of its customers Aditya Birla Capital LTD Listed NBFC ADITYA BIRLA FINANCE LTD 100% 75% ADITYA BIRLA MONEY LTD Stock & Securities Housing Finance ADITYA BIRLA HOUSING FINANCE LTD 100% 50.01% ADITYA BIRLA INSURANCE BROKERS LTD 2 Insurance B
Slide 4: Management team
Management team Average experience of Average experience of Chief Executive, ABCL 23+ years in Financial 10 years in ABG Services domain Ajay Srinivasan Business CEOs CEO & MD CEO CEO, Infra & CEO, Asset CEO, General CEO, Private Equity CEO, Health Insurance Life Insurance Aditya Birla Finance Struc
Slide 5: Our approach
Our approach Leveraging Market Opportunities Product Increasing Innovation and Reach Performance Balanced and Capturing Customer Life Leveraging Profitable Time Value Synergies Growth Strengthening Enablers - Retailisation Risk, Technology and Analytics Aditya Birla Capital Limited 5
Slide 6: Growth and scale across the platform
Growth and scale across the platform A Trusted Brand That Serves All Financial Needs.. ..with a Platform of Size and Scale 5 Year Growth : FY14 → FY18 PROTECTING FINANCING Pan-India Life Insurance Ind FYP: 1.3x NBFC Lending Book: 3.7x presence with 800+ 2,00,000+ Health Housing Insurance* GWP: ~Rs 2
Slide 7: Key milestones: FY18
Key milestones: FY18 ✓ LISTED Aditya Birla Capital ✓ Ranked No.3 Mutual Fund4 ✓ Launched UNIFIED Brand ✓ Net VNB Positive in Life Insurance Business HFC Achieved Full Year PROFITABILITY ✓ Crossed Rs 1,000 Cr Annual PAT1 ✓ 1st FULL YEAR for Health Insurance with ✓ Manage over Rs 3,00,000 Cr in AUM2 ✓
Slide 8: Power of coming together as ONE BRAND
Power of coming together as “ONE BRAND” Our Consideration Score1 since launch of ABCL Brand in November 2017 Breaking off the Pack Gain in overall Consideration Score Oct’17 Jun’18 To p P r i v a t e S e c t o r B a n k s To p P u b l i c S e c t o r I n s t i t u t i o n s Private Diversified NBFCs
Slide 9: Delivering strong financial performance: FY18
Delivering strong financial performance: FY18 Figures in Rs Crore C O N S O L I D AT E D PROTECTING INVESTING FINANCING 21% 28% 27% 32% 13,428 1,235 2,67,739 51,378 11,071 964 2,10,742 38,839 FY17 FY18 Revenue4 FY17 FY18 FY17 FY18 FY17 FY18 Profit After Tax FY17 FY18 Growth (After Minority Interest)
Slide 10: Delivering strong financial performance: Q1 FY19
Delivering strong financial performance: Q1 FY19 Figures in Rs Crore PROTECTING INVESTING FINANCING C O N S O L I D AT E D 62% 19% 30% 32% 3,374 280 2,67,176 53,584 2,553 172 2,25,176 41,066 Q1 FY18 Q1 FY19 Revenue4 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Profit After Tax Q1 FY18 Q1 FY19 Gro
Slide 11: Aditya Birla Finance Limited
Aditya Birla Finance Limited 11
Slide 12: A well diversified portfolio
A well diversified portfolio CAGR 39% 43,242 Amongst Top 5 Private Diversified SME + Retail + HNI NBFCs in India 34,703 Strong growth in 25,755 +4% Lending Book grew at 39% CAGR lending book 17,855 Mid + Large Lending Book at Rs 43,242 cr (Rs. Cr) 11,735 Retail + SME + UHNI Mix at 47% (up 4%) FY'14
Slide 13: Multi-product portfolio catering to a range of customer needs
Multi-product portfolio catering to a range of customer needs Large & Mid Corporate (50% of Loan Book) SME (27% of Loan Book) 6% 4% 8% 12% TL/ WCDL TL/ WCDL 11% 14% 19% 19% LAP 24% 25% Project Loan 26% 29% LRD 27% 24% Structured Finance 47% 39% Supply Chain Finance 31% 33% Construction Finance FY 1
Slide 14: Diversified borrowing mix
Diversified borrowing mix Competitive Cost of Borrowings 5% 4% 3% 5% 5% 15% 24% 28% Achieved through active treasury management and 33% 30% dynamic changes in borrowing mix 29% 16% 19% Diversified 26% 25% Borrowing Mix 51% 56% 50% AAA rated by India Rating and Research 36% 40% Strong parentage of Ad
Slide 15: Continuing to deliver strong performance
Continuing to deliver strong performance Figures in Rs Crore Cost to Income Ratio Maintained Asset Quality while moving from 180 to 90 DPD 34% Gross NPA Net NPA 31% 29% 31% 0.90% 0.92% 25% 0.63% 0.20% 0.65% 0.47% 0.32% 0.17% 0.22% 0.21% FY'14 FY'15 FY'16 FY'17 FY'18 FY'15 FY'16 FY'17 FY'18 180 DPD 1
Slide 16: Key Financials – Aditya Birla Finance Limited
Key Financials – Aditya Birla Finance Limited Figures in Rs Crore ∆ LY% Quarter 1 (Ind AS) Full Year (IGAAP) ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 23% 36,250 44,408 Lending book 34,703 43,242 25% 11.6% 11.7% Average yield 11.9% 11.4% 6.7% 6.9% Inter
Slide 17: Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Limited 17
Slide 18: Strong growth in lending book
Strong growth in lending book Figures in Rs Crore Fast Growing Housing Finance Company Loan Book Growth Gross Disbursements Disbursement grew 2.6x over 2 years 8,137 5,105 Lending Book grew ~4x over 2 years 4,136 2,802 1,997 Lending book at Rs. 8,137 cr 1,973 Affordable Loan Book at ~Rs 650 Crore FY
Slide 19: Diversification across products & geographies
Diversification across products & geographies Portfolio Mix (%) Geographic Mix (%) 5% 6% 12% 11% 29% 36% 38% 33% West 32% 26% Affordable Housing 14% South Construction Finance 18% 19% North LAP 41% East 61% 56% 58% 31% 29% Home Loans 16% 15% 14% FY'16 FY'17 FY'18 FY'16 FY'17 FY'18 Scaling up of affo
Slide 20: Turned profitable in just 7 quarters of operation
Turned profitable in just 7 quarters of operation Figures in Rs Crore Net Interest Income Cost to Income Ratio 169% 172 102% 87 76% 30 FY'16 FY'17 FY'18 FY'16 FY'17 FY'18 GNPA & NNPA % Earnings Before Tax Gross NPA Net NPA 24.0 0.53% 0.43% 0.34% 0.28% 0.17% 0.14% FY'16 FY'17 FY'18 -15.0 -30.2 FY'16
Slide 21: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited Figures in Rs Crore ∆ LY% Quarter 1 (Ind AS) Full Year (IGAAP) ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) ~2x 4,816 9,176 Lending book 4,136 8,137 ~2x 10.6% 10.0% Average yield 10.7% 9.9% 7.0% 7.2% In
Slide 22: Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited 22
Slide 23: Leading mutual fund player in India
Leading mutual fund player in India Figures in Rs Crore Market Leadership with No.3 Rank CAGR 29% 2,67,739 AAUM market share of 10.75% in FY18 20,209 2,10,742 15,693 Equity AAUM grew at 65% CAGR 1,33,689 1,52,427 1,61,079 Growth in 15,924 Equity composition at 35% in FY18 96,429 13,658 1,45,135 AAUM
Slide 24: Continued focus on retail expansion
Continued focus on retail expansion 3x 6.0 Retail + HNI AUM1 at Rs 1,15,000+ Crore Significant 3.9 Retail AUM grew 37% Y-o-Y in FY18 Growth in 2.0 2.4 2.9 Investor Folio (Mn) Investor folios up 3x in 5 years Mar-14 Mar-15 Mar-16 Mar-17 Mar'18 10x 956 Monthly SIP book2 over Rs. 950 crore Grew 10x ove
Slide 25: Balanced Distribution Network
Balanced Distribution Network Overall AUM Sourcing Mix (%) Equity AUM Sourcing Mix (%) IFA Bank National Distributor Direct IFA Bank National Distributor Direct 17% 19% 42% 43% 24% 22% 23% 19% 19% 17% 13% 13% 40% 42% 22% 25% FY'17 FY'18 FY'17 FY'18 Balanced Sourcing Mix IFA has Greater Share in Equi
Slide 26: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited Figures in Rs Crore ∆ LY% Quarter 1 (Ind AS) Full Year (IGAAP) ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 27% 2,05,715 2,49,270 Domestic Avg. AUM* 1,95,049 2,47,529 27% 59,891 89,031 Domestic Equity Avg.
Slide 27: Aditya Birla Sun Life Insurance Limited
Aditya Birla Sun Life Insurance Limited 27
Slide 28: Strong value creating growth
Strong value creating growth Figures in Rs Crore Ind. FYP grew by 40% y-o-y in Q1 FY19 27% 1,152 Significantly higher than peer-group y-o-y growth1 960 227 Industry: 6% | Private: 5% | Top 4 Private: 2% Growth in 711 163 Individual FYP Improved individual rank by 2 spots to No.71 FY'16 FY'17 FY'18 Q
Slide 29: Balanced channel strategy by investing in new growth engines
Balanced channel strategy by investing in new growth engines Balanced Distribution Mix 18% 23% 32% Increasing share of partnership channels from 18% to 32% Balanced Sourcing Strategy led 82% 77% 68% by growth in Drive Operating Leverage in Partnerships Proprietary Channels FLS productivity (Agency)
Slide 30: Focus on quality of business
Focus on quality of business Average Policy Term1 (Years) Average Customer Age1 (Years) Persistency Ratios1 ULIP 6 ULIP 37 56.5% FY16 64.7% Protection 25 Protection 37 60.2% FY17 PAR 14 71.4% PAR 32 Non-PAR 8 64.4% Non-PAR 37 FY18 75.2% Overall 14 Overall 35 25th month 13th month Average Premium Pay
Slide 31: Focus on value creation
Focus on value creation Figures in Rs Crore Gross VNB Margin1 at 37.2% in Q1 FY19 37.2% Gross VNB grew by 85% Y-o-Y over Q1 FY18 32.9% Gross VNB 28.9% Margin Positive Net VNB Margin at 4.3% Key Drivers: FY'17 FY'18 Q1 FY19 - Good volume growth 4.3% - Expense management Net VNB - Increasing Protectio
Slide 32: Key Financials – Aditya Birla Sun Life Insurance Limited
Key Financials – Aditya Birla Sun Life Insurance Limited Figures in Rs Crore ∆ LY% Quarter 1 (Ind AS) Full Year (IGAAP) ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 41% 168 237 Individual First year Premium 960 1,152 20% 117 284 Group First year Premium 1,
Slide 33: Aditya Birla Health Insurance Limited
Aditya Birla Health Insurance Limited 33
Slide 34: Strong 1st full year of performance
Strong 1st full year of performance Figures in Rs Crore GWP at nearly ~ Rs 250 crore 4.5x 243 4.5x growth in GWP over FY17 Strong GWP More than 1 million lives covered Growth 54 71 driven by 21 Retail Significantly Scaled Distribution Channels FY17 FY18 Q4 FY17 Q4 FY18 And a network of 4200+ Hospita
Slide 35: Building multi-channel leadership capacity for future growth
Building multi-channel leadership capacity for future growth Q1 FY18 Q4 FY18 Q1 FY19 Significant Momentum in Distribution across all Channels Branches 15 59 59 7 Banca tie-ups: ▪ HDFC, DCB, RBL, Deutsche Bank , ABPB & AU Bank. Agents 2,900+ 15,500+ 17,500+ ▪ KVB signed up in Q1 FY19 No. of Cities In
Slide 36: Driving value through diversification
Driving value through diversification Channel mix - Increasing contribution from Banca Geographical diversification (% contribution of Non-Metro) 30% 46% 48% 46% 42% Agency 24% 20% 13% 15% 14% 28% 32% Banca 41% 37% 26% 26% Others Q1 FY'18 Q2 FY'18 Q3 FY'18 Q4 FY'18 Q1 FY'18 Q2 FY'18 Q3 FY'18 Q4 FY'1
Slide 37: Other Financial Services businesses
Other Financial Services businesses
Slide 38: Other financial services businesses
Other financial services businesses Figures in Rs Crore ∆ LY% Quarter 1 (Ind AS) Full Year (IGAAP) ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 16-17 FY 17-18 (PY) (CY) (PY) (CY) 1.8x 88 162 Aggregate Revenue 280 448 1.6x 9 4 Aggregate Earnings before tax (9) 5 Profitable • Premium placemen
Slide 39: Annexure Consolidated Financials
Annexure Consolidated Financials
Slide 40: Consolidated Profit & Loss
Consolidated Profit & Loss Figures in Rs Crore Full Year (IGAAP) Key Performance Parameters FY 16-17 FY 17-18 Like to Like (PY) (CY) FY 16-17 1 Reported (PY) Revenue 5,823 13,428 11,071 21% EBITDA 3,408 4,689 3,527 Less: Interest Exp. for lending businesses 2,288 2,986 2,288 Less: Other Interest Exp
Slide 41: Segment Revenue
Segment Revenue Figures in Rs Crore Full Year (IGAAP) FY 16-17 FY 17-18 (PY) (CY) Life Insurance 788 6,375 NBFC 3,425 4,480 Housing 315 615 Asset Management 968 1,249 General Insurance Broking 121 261 Broking 131 162 Health Insurance 65 245 Other Financial Services 30 86 Inter Segment Elimination (1
Slide 42: Segment EBT
Segment EBT Figures in Rs Crore Full Year (IGAAP) FY 16-17 FY 17-18 (PY) (CY) Life Insurance 40 166 NBFC 837 1,114 Housing (16) 24 Asset Management 337 493 General Insurance Broking 39 40 Broking 8 13 Health Insurance (89) (195) Other Financial Services (90) (101) Consolidated EBT (Reported) 1,066 1
Slide 43: Aditya Birla Capital Limited
Aditya Birla Capital Limited CIN: L67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujarat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013 Website: www.adityabirlacapital.com 43
Slide 44: Glossary
Glossary ▪ CY – Current Year ▪ NIM – Net Interest Margin ▪ FY – Financial Year (April-March) ▪ DPD – Days past due ▪ PY – Corresponding period in Previous Year ▪ CAB – Corporate Agents and Brokers ▪ PQ – Previous Quarter ▪ AAUM – Quarterly Average Assets under Management ▪ Q1– April-June ▪ FYP – Fir
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