Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Q2 FY18 Earnings Presentation
33 slides from Bajaj Finserv's earnings presentation, Oct 16, 2017
Slide 1: Letter to BSE and NSE: Investor Presentation for Q2 FY18 results
BAIA FINSERV 16 October 2017 To To Corporate Relations Department. Corporate Listing Department. BSE Limited National Stock Exchange of India Ltd. 1st Floor, New Trading Ring Exchange Plaza, 5th Floor Rotunda Building, P J Tower Plot No.C-1, G Block Dalai Street, Fort, Bandra-Kurla Complex Mumbai 40
Slide 2: Investor Presentation – Q2 FY18
BAJAJ FINSERV LIMITED Investor Presentation – Q2 FY18* * Financial year 2017-18
Slide 3: Bajaj Finserv – A diversified financial services group
Bajaj Finserv – A diversified financial services group 55.13%* 74% 74% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life Insurance # Insurance # • Diversified NBFC present in consumer finance, SME, • Highest PAT among private • Among the top 5 private sector commercial and rural lending
Slide 4: Bajaj Finserv performance highlights
Bajaj Finserv performance highlights All Figures in Rs Million Performance Highlights of Q2 FY18 over Q2 FY17 CY 75,614 14,689 6,523 28,581 28% 19% 13% 4% PY 59,200 12,326 5,758 27,534 Total Revenue Profit before Tax PAT Net Worth (Consolidated) (Consolidated) (Consolidated) (Standalone) • Bajaj Fin
Slide 5: Consolidated profit components
Consolidated profit components All Figures in Rs Million Consolidated profit components for Q2 FY18 Intercompany adjustments Bajaj Finserv- Standalone (1,144) Others 1,160 Life 6,523 Insurance 6 Bajaj Finserv General - Insurance 1,374 Consolidated Bajaj Finance 1,921 3,206 Consolidated profit compon
Slide 6: H1 Highlights
H1 Highlights All Figures in Rs Million Highlights of Group Companies BAJAJ FINSERV H1 FY18 H1 FY17 Growth BAJAJ FINANCE H1 FY18 H1 FY17 Growth Total Revenue 141,046 111,504 27% AUM 721,389 523,320 38% Net worth (Cons) 192,726 144,988 33% Total Income 62,287 46,193 35% PAT 13,074 11,133 17% PAT 11,5
Slide 7: Bajaj Finance Limited
Bajaj Finance Limited # # Standalone 6
Slide 8: Bajaj Finance - Overview
Bajaj Finance - Overview Business Construct Non-bank with strategy & structure of a bank with consistent track record of profitability Focused on mass affluent & above clients with strong cross sell orientation Diversified financial services strategy seeks to optimise risk and profit to delive
Slide 9: Bajaj Finance – Overview: Differentiators
Bajaj Finance – Overview DIFFERENTIATORS Part of the Bajaj Group – one A trusted brand with strong brand equity of the oldest & most respected business houses Focus on mass affluent and Overall franchise of 22.99 Mn and Cross sell client above customers base of 13.21 Mn Strong focus on cross sel
Slide 10: Bajaj Finance's businesses
Bajaj Finance’s businesses BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and- electronics, digital SMEs with an average products covering spoke model in 560 products & furniture annual sales of ₹ 10-12 short, medium and location
Slide 11: Bajaj Finance has clocked healthy growth in revenues
Bajaj Finance has clocked healthy growth in revenues All Figures in Rs Million 686,138 Book Size Total Income99,890 568,323 499,811 700,000 100,000 427,558 90,000 600,000 80,000 73,334 311,994 500,000 70,000 229,710 60,000 54,182 400,000 167,436 50,000 40,744 300,000 40,000 31,097 31,023 200,000 30,
Slide 12: Portfolio quality continues to be good, and operating costs remain under control
Portfolio quality continues to be good, and operating costs remain under control All Figures in Rs Million Operating expenses as a % of NII Loss Provision and Net NPA% 9,000 2.0% 8,039 45% 46% 45% 45% 8,000 50% 43% 41% 43% 7,000 40% 6,000 5,429 5,000 30% 3,846 4,000 20% 3,000 2,588 1,654 2,278 1,818
Slide 13: Bajaj Finance – Q2 highlights
Bajaj Finance – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY18 over Q2 FY17 CY 686,138 31,023 5,569 37% 33% 37% PY 499,811 23,411 4,078 Book Size Total Income Profit After Tax CY 0.8% 4.4% • Borrowing mix is not excessively dependent on banks. (Mix of 30 : 60 : 10 between
Slide 14: Bajaj Allianz General Insurance
Bajaj Allianz General Insurance 13
Slide 15: General Insurance – Overview: Strategy
General Insurance – Overview STRATEGY Grow faster than market in chosen segments Presence across retail and commercial lines, with a focus on retail business Emphasis on profitability through superior underwriting, & strong cash flow generation, resulting in superior ROE & CoR Deliver indust
Slide 16: General Insurance – Overview: Differentiators
General Insurance – Overview DIFFERENTIATORS Industry leading combined ratios over the last several years with superior ROE Strong selection of Risk Highest PAT in private sector in FY17 Trend-setter in the industry for cash-less claims. First to insource health insurance administration Disrup
Slide 17: BAGIC has maintained consistent industry leading Combined ratio, below 100%
BAGIC has maintained consistent industry leading Combined ratio, below 100% Combined Ratios (Including Motor TP Pool Losses) 120% 99.5% 98.1% 96.7% 99.3% 96.8% 100% 94.3% 88.8% 80% 60% 40% 20% 0% FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q2 FY18 1. A combined ratio below 100% indicates that the company makes
Slide 18: Consistent performance in General Insurance
Consistent performance in General Insurance Combined Ratio 105.0% 110.0% 99.5%102.2% 98.1%101.0% 96.7%101.5% 99.3% 101.7% 101.2%104.7% 100.4% 100.0% 96.8% 95.8% Industry’s 90.0% leading 80.0% combined 70.0% ratio on 60.0% sustained 50.0% basis FY13 FY14 FY15 FY16 FY17 Q1 FY17 Q1 FY18 BAGIC Top 5 Pri
Slide 19: BAGIC has delivered high ROEs on a sustained basis
BAGIC has delivered high ROEs on a sustained basis All Figures in Rs Million PAT & RoE 8,000 7,278 30.0% 5,642 28.0% 28.9% 6,000 26.7% 5,623 22.5% 4,090 22.5% 23.0% 4,000 2,951 15.0% 2,344 2,596 2,000 7.5% 7.7% 6.7% - 0.0% FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q2 FY18 PAT ROE (for the period non-annulize
Slide 20: BAGIC continuously among top private insurers
BAGIC continuously among top 2 private insurers Industry Premium Trends 1,200 (Ex Specialized) 1,134 1,050 874 900 776 537 706 629 Rs. Billion 750 397 600 320 351 450 279 318 274 300 150 134 168 350 386 425 477 597 140 150 - FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q2 FY18 PSU Private Insurers 76,871 BAGIC
Slide 21: BAGIC has a balanced business mix
BAGIC has a balanced business mix Business Mix 100% 9% 9% 9% 10% 9% 9% 8% 8% 6% 19% 18% 19% 20% 25% 16% 16% 8% 9% 6% 13% 6% 14% 5% 5% 14% 6% 6% 7% 50% 6% 9% Business 8% 5% 5% mix is retail 59% 59% focused 55% 56% 46% 43% 40% 0% FY13 FY14 FY15 FY16 FY17 H1 FY17 H1 FY18 Motor (Retail) Health (Retail)
Slide 22: BAGIC continues strong AUM growth
BAGIC continues strong AUM growth AUM(cash and investments) - Rs Billion (as of end of period) 140 121 BAGIC 120 continues to 108 grow its 104 100 92 AUM strongly 79 80 70 58 Investments 60 are largely in fixed 40 income securities 20 0 FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q2 FY18 21
Slide 23: Allianz General – Q2 highlights
Bajaj Allianz General – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY18 over Q2 FY17 CY 28,569 15,887 2,596 6.7% 31% 28% 11% PY 21,788 12,405 2,344 7.7% Gross Written Net Earned Premium Profit After Tax ROE Premium (Not Annualized) PAT 8,000 7,278 6,000 5,623 5,642 Rs. Mill
Slide 24: Bajaj Allianz Life Insurance
Bajaj Allianz Life Insurance 23
Slide 25: Life Insurance - Overview: Strategy
Life Insurance - Overview STRATEGY Grow regular premium Diversified distribution channels with an emphasis on individual agents Maintain a balanced product mix Maintain leadership amongst private companies in the financial inclusion segment 24
Slide 26: Life Insurance - Overview: Differentiators
Life Insurance - Overview DIFFERENTIATORS Large pan proprietary agency force Large Proprietary Wide distribution reach of offices and agents Agency Force Lean support structure In terms of lives covered in group schemes, BALIC Financial Inclusion leads the private sector, with about 35% shar
Slide 27: Strong growth in Individual Rated premiums
Strong growth in Individual Rated premiums All Figures in Rs Million Individual Rated NB Agency Individual Rated NB 12,000 10,000 10,101 9,000 8,667 10,000 8,000 7,000 6,429 8,000 7,172 6,000 6,000 5,000 4,000 4,000 2,800 3,000 2,218 2,117 1,819 2,000 2,000 1,000 - - FY16 FY17 Q2 FY17 Q2 FY18 FY16 F
Slide 28: Diversified product mix
Diversified product mix Individual Rated NB Premium – Mix Individual Rated NB Premium – Mix (Annual) (Quarterly) 100% 80% 72% 66% 70% 60% 51% 50% 42% 40% 28% 23% 25% 20% 7% 5% 6% 5% 0% 0% Individual - Par Individual - Non Individual - Unit Individual - Par Individual - Non Individual - Unit Par Link
Slide 29: Assets Under Management are significant
Assets Under Management are significant AUM as of end of period in Rs Billion AUM AUM (Mix) 600 Unit Linked Other than Unit Linked 511 350 299 492 284 500 469 266 435 441 300 249 245 380 388 219 400 216 250 213 212 208 203 192 175 300 200 135 150 200 100 100 50 0 0 FY13 FY14 FY15 FY16 FY17 Q2 FY17 Q
Slide 30: BALIC is amongst the most capital efficient private insurers
BALIC is amongst the most capital efficient private insurers All Figures in Rs Million Capital Invested - Networth 100,000 84,756 80,771 88,601 76,315 BALIC’s Networth is 7.3 times 80,000 67,490 58,708 the Capital infused as of Q2 60,000 48,441 FY18 12,107 12,107 12,107 12,107 12,107 12,107 12,107 4
Slide 31: Bajaj Allianz Life – Q2 highlights
Bajaj Allianz Life – Q2 highlights All Figures in Rs Million Performance Highlights of Q2 FY18 over Q2 FY17 CY 2,800 9,759 7,445 20,156 32% 75% 15% 39% PY 2,117 5,569 6,471 14,467 Individual Rated NB Group NB Renewal Premium Gross Written Premium CY 1,857 608% 510,878 Solvency Ratio as on -8% 30 Sep
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 33: Thank You
BAJAJ FINSERV Thank You 32