Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q2 FY21 Earnings Presentation
59 slides from Aditya Birla Capital's earnings presentation, Nov 5, 2020
Slide 1: Investor Presentation Financial Results: Q2 FY21
Investor Presentation FINANCIAL RESULTS: Q2 FY21 MUMBAI 5th November 2020 A Leading Financial Services Conglomerate Aditya Birla Capital Limited
Slide 2: Table of contents
Table of contents Figures in Rs Crore 1 | Overview Pg. 3 - 7 2 | Business-wise Performance Pg. 8 - 52 3 | Other Performance Updates Pg. 53 - 59 Copyright Content / 2016 NOTE 1: The financials of Aditya Birla Capital Ltd are consolidated financials prepared based on Ind AS unless otherwise specified
Slide 3: Q2 FY21 Key Highlights
Q2 FY21 | Key Highlights Figures in Rs Crore Strong revival in business with economy re-opening; NBFC NIM expanded to 5.32% (↑ 50 bps q-o-q); ✓ Consolidated Revenue ↑ 14% q-o-q to 4,879 Crore and ✓ Pre provision operating profit (PPOP) ↑ 12% q-o-q; PAT ↑ 33% q-o-q to Rs 264 Crore PAT ↑ 29% q-o-q Lif
Slide 4: Consolidated Financials
Consolidated Financials Figures in Rs Crore ↑14% Y-o-Y | 14% Q-o-Q ↑12% Y-o-Y Businesses Q1 FY21 Q2 FY20 Q2 FY21 NBFC 140 218 181 Revenue1 4,275 4,286 4,879 9,165 8,211 Asset Management 97 148 125 Life Insurance 17 34 23 Housing 28 28 36 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 General Insurance Brok
Slide 5: Advantages of the ABC platform
Advantages of the ABC platform Figures in Rs Crore Our Scale Diversified platform allowing us to Strong parentage and brand with capitalize on multiple opportunities and delivering strong earnings recall and appeal across the country Rs 3 Lac Crore 21,000 through the cycle Total AUM Employees Pan In
Slide 6: Technology Capabilities
Continue to leverage technology Figures in Rs Crore Revenue Customer Advocacy Cost optimization Scalability Technology Capabilities DIGITAL ONBOARDING LEVERAGING TECH TO ENHANCE BUSINESS PROCESS EXCELLENCE CORE OPERATING PLATFORMS CUSTOMER EXPERIENCE WHATSAPP FOR RENEWAL AUTOMATION TO REDUCE HUMAN H
Slide 7: Awards and Accolades
Awards and Accolades Figures in Rs Crore Winner of Lean Six Sigma Best Fund House for Brand of the Year Project Investor Education Indian Content Marketing Awards The Confederation of Indian Asia Asset Management Best of (ICMA) 2020 Industry (CII) Award, 2020 the Best Awards, 2020 Best Social Media
Slide 8: Aditya Birla Finance Limited
Aditya Birla Finance Limited NBFC Business
Slide 9: Performance Summary | NBFC | Aditya Birla Finance
Performance Summary | NBFC | Aditya Birla Finance 1 Strong revival in disbursements 2 Focus on Portfolio Rebalancing ➢ Gross Disbursal of ~Rs 2,598 Crores (2x of Q1 FY21 | 64% of PY) ➢ Retail portfolio ↑ 16% y-o-y; Retail + SME + HNI Mix at 51.9% (PY: 50.5%) ➢ Disbursements in Sep’20 bounces back to
Slide 10: Disbursals
Strong revival in disbursements with focus on target segments Figures in Rs Crore Disbursement trending back to pre-CoVID levels Focusing new disbursement in target segments Gross Disbursal of ~Rs 2,598 Crores | 2x of Q1 FY21 | 64% of PY 4,038 Disbursals 2,598 1,118 1,067 1,108 1,313 Q2 FY20 Q1 FY21
Slide 11: Large/ Mid Corporate
Building granularity across segments Figures in Rs Crore Loan book 13,316 12,541 12,864 Loan Book 22,331 20,847 19,714 % Mix 28% 27% 28% % Mix 46% 45% 43% Large/ Mid Corporate ATS (Rs Crore) 5 5 5 ATS (Rs Crore) 66 59 58 Supply Chain Finance 10% 9% 7% 21% TL/ WCDL/ NCDs SME 23% 21% LRD 1% 1% 44% 42%
Slide 12: Increase in margins leading to improvement in PPOP
Increase in margins leading to improvement in PPOP Figures in Rs Crore NIM at 5.32% (↑ 50 bps q-o-q | ↑ 17 bps y-o-y) Maintained CIR Net Interest Income1,3 Cost Income Ratio3 0.22% 0.15% Fee Income 0.08% 30.7% 30.6% 28.8% Core NIM 5.17% 4.92% 4.74% Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 NIM
Slide 13: Enhanced provision cover across stages
Enhanced provision cover across stages Figures in Rs Crore Stage 1 & 2 PCR from 0.52% (Q3 FY20) → 0.97% (Q2 FY21) Stage 3 PCR from 28.9% (Q3 FY20) → 44.6% (Q2 FY21) Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY211 Figures in Rs Crores Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 L
Slide 14: Adequate provisioning and security cover across segments
Adequate provisioning and security cover across segments Figures in Rs Crore Security cover and Guarantee Programs Net Security Customer Segments GS3 Provision NS3 Security Cover1 ▪ ~80% of total loan book secured. Security Cover: SME 177 70 107 212 2.0x ▪ Overall Loan Book: Security value of Rs 82,
Slide 15: Well matched ALM with adequate liquidity
Well matched ALM with adequate liquidity Figures in Rs Crore ALM optimised for liquidity and costs (As on 30th Sep 2020) Adequate liquidity under stress test scenario (Oct’20 over Sep’21) 100% 100% Liability Maturity (Sep’21) Fund Available as on 30th Sep 2020 Cumulative Outflows Cumulative Inflows
Slide 16: Leveraging technology in NBFC business
Leveraging technology in NBFC business Figures in Rs Crore Digital initiatives/ Assets deployed Business KPIs Customer Onboarding Top-up and cross-sell Digital Onboarding Digital Payouts ➢ 100% digital and paperless onboarding ➢ Policy rules digitally coded for auto-generating 89% 99% 100% ➢ Video K
Slide 17: Key Financials – Aditya Birla Finance Limited
Key Financials – Aditya Birla Finance Limited Figures in Rs Crore Quarter 1 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 FY 19-20 FY 20-21 Key Performance Parameters (CY) (PY) (CY) (PY) (CY) 45,939 48,368 45,475 Lending book 48,368 45,475 11.64% 12.32% 11.83% Average yield (Inc
Slide 18: Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Limited Housing Finance Business
Slide 19: Performance Summary | Housing Finance
Performance Summary | Housing Finance | AB Housing Finance 1 Strong revival in disbursements 2 Focus on Portfolio Rebalancing ➢ Focus on granular business continues ➢ Focused approach to build granular higher-yielding business: ➢ HL ATS at Rs 29 Lacs ↓ 12% y-o-y ➢ Logins (Count) in Sep’20: 129% of P
Slide 20: Recovery in disbursement with growth in focused segments
Recovery in disbursement with growth in focused segments Figures in Rs Crore Growing loan book with increased retail mix Change in Loan Book and Disbursement Mix Increasing Greater Reduction in Construction Loan Book Retail Mix Home Loans Affordable Realization Granularity Finance 2Y CAGR: 11% 2Y: 9
Slide 21: Customer Mix: Sourcing strategy
Sourcing strategy Figures in Rs Crore Diversified Geographic Mix (%) Focus on increasing reach and building retail granularity Metros Non-Metros Home Loans Sourcing 39% 40% 41% 41% 4,509 4,423 Non-metro loan 3,731 3,793 book mix at 47% 13% 12% 12% 11% 57 branches currently 19% 19% 19% 19% operationa
Slide 22: Increase in core profits driven by margins and control on cost
Increase in core profits driven by margins and control on cost Figures in Rs Crore Margin improvement led by change in product mix CIR ↓ 4% q-o-q Net Interest Income1,3 NIM: ↑ 6 bps q-o-q & ↑ 42 bps y-o-y Cost Income Ratio 93 44.0% 45.7% 41.2% 84 84 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 NI
Slide 23: Enhanced provision cover across stages
Enhanced provision cover across stages Figures in Rs Crore Stage 1 & 2 PCR from 0.33% (Q3 FY20) → 0.66% (Q2 FY21) Stage 3 PCR from 31% (Q3 FY20) → 37% (Q2 FY21) Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY211 Figures in Rs Crores Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 Stage 1 & 2 Stage 3 Loan
Slide 24: Well matched ALM with adequate liquidity
Well matched ALM with adequate liquidity Figures in Rs Crore ALM optimised for liquidity and costs (As on 30th September 2020) Adequate liquidity under stress test scenario (Oct’20 over Sep’21) 100% 100% Liability Maturity (Sep’21) Fund Available as on 30th Sep 2020 Cumulative Outflows Cumulative In
Slide 25: Leveraging technology across customer journeys
Leveraging technology across customer journeys Figures in Rs Crore Digital initiatives/ Assets deployed Business KPIs Customer Onboarding Digital Collections Customer Onboarding Digital Collection ➢ Mobile App for Digital onboarding of customers ➢ Voice Bot for collections and moratorium calling lev
Slide 26: Value accretive growth
Value accretive growth Figures in Rs Crore PAT Return on Assets Return on Equity1 PAT at Rs 36 Cr (PQ: 28 Cr) RoA at 1.17% (PQ: 0.92%) RoE at 10.56% (PQ: 8.25%) 10.56% 1.17% 9.43% 8.25% 0.92% 0.92% 36 28 28 Copyright Content / 2016 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q1 FY21 Q2 F
Slide 27: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited Figures in Rs Crore Quarter 1 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 Key Performance Parameters FY 19-20 FY 20-21 (CY) (PY) (CY) (PY) (CY) 12,134 12,079 12,117 Lending book 12,079 12,117 10.36% 10.36% 10.25% Average yi
Slide 28: Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited Asset Management Business
Slide 29: Performance Summary | Asset Management
Performance Summary | Asset Management | ABSL Asset Management Co 1 Strong revival in AUM 2 Maintaining Leadership and Market Share ➢ Overall Domestic AAUM at Rs. 2,38,674 Crore in Sep’20 (↑ ~11% q-o-q) ➢ Strong retail franchise with investor folio count at ~7.2 Mn; Fastest growing AMC in terms of f
Slide 30: Rebound in AUM growth
Rebound in AUM growth Figures in Rs Crore Average Assets under Management Closing Assets under Management Domestic AAUM: Overall ↑ 11% q-o-q | Equity ↑ 13% q-o-q Domestic AAUM: Overall ↑ 5% q-o-q | Equity ↑ 5% q-o-q 2,69,393 2,50,281 6,371 2,25,713 2,35,211 2,29,594 3,292 2,17,643 3,662 1,65,290 1,5
Slide 31: Focus on retailisation
Focus on retailisation Retail + HNI AAUM at Rs 1+ Lakh Crore (5Y CAGR ~17%) 2nd highest gain in B-30 Market Share amongst Top 5 Players over 5 yrs Figures in Rs Crore Figures in Rs Crore Overall ↑ 8% q-o-q | Retail ↑ 12% q-o-q ↑ 10% y-o-y | ↑ 13% q-o-q Retail + HNI MAAUM 1,20,701 B-30 AAUM 1,02,706
Slide 32: Strong and sustained rebound in SIP
Strong and sustained rebound in SIP Strong revival in new SIP registrations SIP AUM Figures in Rs Crore ↑ 33% q-o-q | Registrations in Q2 FY21 at ~80% of Q4 FY20 SIP AUM grew ~9% q-o-q New SIP Registration Count 1,89,528 34,995 SIP AUM 1,42,900 32,070 31,962 1,07,285 Q2 FY20 Q1 FY21 Q2 FY21 Sep-19 J
Slide 33: Large and diversified distribution network
Large and diversified distribution network Continue to grow IFA share in equity sourcing Investor Education and Distributor development 13% 12% 12% Bank ▪ Conducted 349 digital investor education programs covering 20% 20% 20% 48,000+ Investors National Distributor 47% 49% 50% ▪ Conducted 290 distrib
Slide 34: Leveraging technology
Leveraging technology Digital initiatives/ Assets deployed Business KPIs Customer Onboarding Customer Self-Service Digital Onboarding Customer interactions on ➢ 83% of new Folios created Digitally ➢ Introduced Systematic Corner, a dedicated Digital Channels section to manage all the systematic ➢ API
Slide 35: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited Figures in Rs Crore Quarter 1 Quarter 2 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 Key Performance Parameters FY 19-20 FY 20-21 (CY) (PY) (CY) (PY) (CY) 2,14,592 2,53,828 2,38,674 Domestic AAUM 2,53,897 2,26,633 72,478 88,539
Slide 36: Aditya Birla Sun Life Insurance Limited
Aditya Birla Sun Life Insurance Limited Life Insurance Business
Slide 37: Performance Summary | Life Insurance
Performance Summary | Life Insurance | ABSL Insurance Co 1 Strong rebound in business 2 Improvement on all quality vectors ➢ Strong rebound in New Business Premium as economy re-opens ➢ Continuous improvement in persistency over the years with 13th month ➢ Individual FYP ↑ 7% y-o-y in H1 FY21 (Priva
Slide 38: Strong rebound in New Business Premium as economy re-opens
Strong rebound in New Business Premium as economy re-opens Figures in Rs Crore Individual FYP1 Group New Business Premium 7% Y-o-Y in H1 FY21 78% Y-o-Y in H1 FY21 Private Players2 -11% Industry2 -7% Private Players2 12% Industry2 -2% 744 1,210 693 1,049 577 679 Copyright Content / 2016 H1 FY19 H1 FY
Slide 39: Leveraging technology
Leveraging technology Figures in Rs Crore Digital initiatives/ Assets deployed Business KPIs Pre-Purchase Customer On-boarding Digital Onboarding Self Service Ratio ➢ 95% New business sourced digitally 91% 95% ➢ Generated 5,00,000 Leads through LMS 85% 69% 71% 61% ➢ Smart Prospecting tool with DIY C
Slide 40: Multi channel distribution strategy
Multi channel distribution strategy Figures in Rs Crore Sourcing Mix Channel Wise Highlights Partnerships Proprietary Partnership Channel Proprietary Channel 432 46% 52% 361 331 312 57% Ind. FYP 54% 48% 43% H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY19 H1 FY20 H1 FY21 3% 3% 11% 11% Product Mix Banca Tie-u
Slide 41: Focus on value accretive product mix
Focus on value accretive product mix Figures in Rs Crore Value Accretive Product Mix Products and Risk Management ▪ Product Strategy – Complete bouquet for all customer needs 8% 7% 6% ➢ Child Plan and Flexi Assured launched on Non-Participating Platform with unique Protection propositions 30% ➢ Reva
Slide 42: Improving quality of business
Improving quality of business Figures in Rs Crore Renewal Premium Persistency1 Controlled Opex2 Y-o-Y Growth ~19% Improving Persistency across cohorts Reduction in opex to premium ratio H1 FY20 H1 FY21 83% 81% 617 1,984 578 539 1,661 70% 1,397 66% 57% 57% 54% 54% 51% 47% 17.5% 20.0% 14.5% Copyright
Slide 43: Improvement in VNB Margins
Improvement in VNB Margins Figures in Rs Crore Gross VNB1 Net VNB2 G-Sec 8.0% 6.7% 6.0% Margin 36.4% 36.3% 34.8% Margin (2.3)% 1.1% 1.6% 259 264 13 218 9 H1 FY19 H1 FY20 H1 FY21 -14 H1 FY19 H1 FY20 H1 FY21 Copyright Content / 2016 Healthy Gross VNB margins despite falling interest rates Net VNB bett
Slide 44: Key Financials – Aditya Birla Sun Life Insurance Limited
Key Financials – Aditya Birla Sun Life Insurance Limited Figures in Rs Crore Quarter 1 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 Key Performance Parameters FY 19-20 FY 20-21 (CY) (PY) (CY) (PY) (CY) 328 423 464 Individual First year Premium 745 791 589 491 620 Group First ye
Slide 45: Aditya Birla Health Insurance Limited
Aditya Birla Health Insurance Limited Health Insurance Business
Slide 46: Performance Summary | Health Insurance
Performance Summary | Health Insurance | AB Health Insurance Co 1 Fastest growing Health Insurer 2 Unique and Differentiated health first Business Model ➢ Fastest growing HI: H1 FY21 growth at 75% vs Industry: 17%, SAHI: 28% ➢ Differentiated core offerings enabling market expansion incl. newer custo
Slide 47: Business Outcomes: Combined Ratio
Business Outcomes GWP growth at 75% y-o-y with 2x retail growth Lives covered growth at 83% y-o-y Retail GWP grew 98% y-o-y (Retail Mix at 77%) 6 Mn+ through rural & micro/ byte-sized products Lives Covered (Mn) 3.1x 550 7.2x 9.5 Revenue 315 Retail 5.2 425 177 215 115 1.2 100 125 Group 62 H1 FY19 H1
Slide 48: ABHI's effort in expansion
Unique & Differentiated Health First Model: Core offerings .. 1/2 Diversified product suite with health first offerings enabling market expansion Expanding the Market Product Differentiators Comprehensive Product Range & Product Innovation Existing market Younger & healthier customer ➢ Indemnity/Fix
Slide 49: Health data based hyper-personalized engagement
Health data based hyper-personalized engagement …2/2 Health Data WellBeing Score Risk Stratification based hyper-personalized recommendation 150+ health data points Holistic health score Very High Risk ✓ 2nd opinion Critical condition ✓ Health / Lifestyle coach ✓ Health chat-bot High Risk Hospitaliz
Slide 50: Scaled-up and diversified digitally enabled distribution network
Scaled-up and diversified digitally enabled distribution network Multi-channel & Digitally enabled distribution Diversified & scaled distribution Diversified and provider and scaled network network ➢ Bancassurance: 9 bank partners → 14,000+ branches; Large banks contributing to H1 FY20 H1 FY21 100
Slide 51: Leveraging Digital, Data & Analytics in Health Insurance business
Leveraging Digital, Data & Analytics in Health Insurance business Leveraging Digital assets and end-to-end digitally enabled journeys Data & Analytics Prospecting On-boarding / Selling Data enrichment & Analytics ➢ Sehat ki Nayi Aadat digital campaign: Activ ➢ Digital advisor onboarding portal: 100%
Slide 52: Key Financials – Aditya Birla Health Insurance Limited
Key Financials – Aditya Birla Health Insurance Limited Quarter 1 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 Key Performance Parameters1 FY 19-20 FY 20-21 (CY) (PY) (CY) (PY) (CY) 179 123 246 Retail Premium 215 425 67 53 59 Group Premium 100 125 246 176 305 Gross Written Premi
Slide 53: Other Performance Updates
ADITYA BIRLA CAPITAL PROTECTING INVESTING FINANCING ADVISING Other Performance Updates
Slide 54: Other Financial Services Businesses
Other Financial Services Businesses Figures in Rs Crore Quarter 2 Figures in Rs Crore Half Year FY 19-20 FY 19-20 Key Performance Parameters FY 19-20 FY 20-21 (PY) (CY) Other Financial Services Businesses1 (PY) (CY) 168 215 Aggregate Revenue 361 390 14 32 Aggregate Profit Before Tax 39 73 • Premium
Slide 55: Ensuring employee wellbeing and nurturing talent
Ensuring employee wellbeing and nurturing talent Figures in Rs Crore 1 2 Employee 3 Talent 4 Health and Learning Engagement Development Safety 21,000 Employees ▪ Launched AI-enabled learning ▪ Various initiatives like ABC ▪ Our talent development ▪ Identified Flu Prevention app encouraging ‘learning
Slide 56: Focus areas of our CSR Mantra 'Money for Good'
4 focus areas of our CSR Mantra “Money for Good” Figures in Rs Crore 36 NGOs 1 2 3 Women 4 Healthcare Education Sports Partners Empowerment 37 Projects Implemented ▪ 50,000+ mother have been ▪ Project ‘Knowledge on Wheel’ ▪ Our 118 SHGs introduced ▪ Our partnership with GoSports the recipients of ou
Slide 57: Consolidated Profit & Loss
Consolidated Profit & Loss Figures in Rs Crore Quarter 1 Quarter 2 Figures in Rs Crore Half Year FY 20-21 FY 19-20 FY 20-21 Consolidated Profit & Loss FY 19-20 FY 20-21 (CY) (PY) (CY) (PY) (CY) 4,028 3,952 4,589 Revenue 7,572 8,617 235 296 296 Profit Before Tax (before share of profit/(loss) of JVs
Slide 58: A financial services conglomerate meeting the life time needs of its customers
A financial services conglomerate meeting the life time needs of its customers 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
Slide 59: Disclaimer
Disclaimer Figures in Rs Crore 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. Any reference herein to "the Company" shall mean Aditya Birl