Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Motilal Oswal 13th Annual Global Investor Conference 2017
28 slides from Aditya Birla Capital's conference presentation, Sep 6, 2017
Slide 1: Intimation of Analyst/Institutional Investor Meeting
September 6, 2017 BSE Limited The National Stock Exchange of India Phiroze Jeejeebhoy Towers, Limited, Dalal Street, Exchange Plaza, 5th Floor, Mumbai 400 001 Plot. C/1, G-Block, Bandra-Kurla Complex, Sandra (East), Mumbai 400 051 Scrip ID: ABCAPITAl Symbol: ABCAPITAl Dear Sirs, Sub: Intimation of S
Slide 2: Making of a Financial Services Conglomerate
Making of a Financial Services Conglomerate September 2017 Aditya Birla Capital Copyright © 2017 Aditya Birla Capital 1
Slide 3: Aditya Birla Capital Structure
Aditya Birla Capital Structure 51% 51% 100% 100% 50.002% 100% Listed 93.7% 51% 75% Aditya Birla Sun Aditya Birla Aditya Birla Aditya Birla Aditya Birla PE Aditya Birla Aditya Birla Aditya Birla Sun Insurance Aditya Birla Life Insurance Finance Housing Finance Advisors Private MyUniverse Health Insur
Slide 4: Progressing in line with its vision
Aditya Birla Capital Progressing in line with its vision Among Largest Private Diversified Asset Management Company Top 5 NBFCs in India1 #4 in India Private Life Insurance Company Among General Insurance Brokers #5 in India2 Top 5 in India Renowned for risk management, investor education, product i
Slide 5: Key metrics
Aditya Birla Capital Key metrics AUM* (₹ Bn) Lending Book** (₹ Bn) 2,613 411 2,463 388 1,843 277 1,648 1,223 177 1,074 117 80 FY13 FY14 FY15 FY16 FY17 Q1FY18 FY13 FY14 FY15 FY16 FY17 Q1 FY18 *Includes AUM of Life & Health Insurance, Private Equity and quarterly average AUM of Asset Management busine
Slide 6: Aggregated financial information (incl. minority interest)
Aditya Birla Capital Aggregated financial information (incl. minority interest) Revenue (₹ Bn) PBT (₹ Bn) 106 11.5 93 9.9 79 8.5 66 7.6 64 7.3 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Note: To make the performance comparable, the aggregate Revenue and PBT above represent a summation of 100%
Slide 7: A Snapshot
Aditya Birla Capital A Snapshot FY17 Revenue & PBT Contribution by Business Revenue INR 105.7 Bn (US$1 1.6 Bn) PBT Employees INR 11.5 Bn 32% (US$1 177 Mn) 12000+ Life Insurance 29% AUM NBFC 9% 72% -14% Pan-India INR 2,463 Bn Asset Management Presence (US$1 37.9 Bn) 2% 4% 11% 3% New Businesses2 1300+
Slide 8: Our Distribution
Our Distribution Multichannel presence 54K+ Independent Financial Advisors 1800+ Health Insurance Agents 1300+ Points of Presence 260+ National Distributors Online/Direct MULTICHANNEL APPROACH 3300+ DSAs in Lending 82K+ Life Insurance Agents 84 Banks Aditya Birla Capital Copyright © 2017 Aditya Birl
Slide 9: Our Product Suite
Our Product Suite Protecting, Investing, Financing and Advising Protecting Investing Financing Advising - Life Insurance - Mutual Funds - Home Loans - Aggregating - Health Insurance - Wealth Management - Personal Loans - Financial planning Our Solutions - Motor Insurance - Private Equity - SME Loans
Slide 10: Our Risk Management
Our Risk Management 3 Tier Framework Investment Risk Management & ALM Level Level Level Policies Key Controls Oversight by 1 2 3 Committees Oversight by function Risk oversight Audit & governance Portfolio risk analysis committees Attribution risk analysis Credit Risk Management Operations Risk
Slide 11: Experienced Leadership
Experienced Leadership Management structure Average experience of 23+ years in Average experience CEO, ABCL Financial Services of 10 years in ABG Ajay Srinivasan domain Business CEOs MD Life Insurance & CEO, Non-Infra, CEO, Asset CEO, General CEO, Health CEO, Infra & Broking CEO, Private Equity Dy.
Slide 12: Key Business Segments Snapshot
Key Business Segments Snapshot Aditya Birla Capital Copyright © 2017 Aditya Birla Capital 11
Slide 13: Indian NBFC sector
Indian NBFC sector Highly underpenetrated market Rising share of non-banks in credit growth Credit as % of GDP (2015) (₹ Bn) 353% 76,944 56,146 10 year CAGR 237% 21% 193% 42,315 163% 163% 175% 19% NBFCs 20% 16,345 18% 107% 79% 76% 16% 81% Banks 16% 82% 84% Japan US China S. Africa UK Brazil India Wo
Slide 14: Aditya Birla Finance
Aditya Birla Finance Consistently delivering quality growth “Among Top 5” – Largest Private A1+ rating for short term debt & Capital Infusion of ₹ 28.2 Bn in Gross NPA of 0.50% at 90 DPD Diversified NBFCs in India1 AA+ rating for long term debt past 5 years to support growth Lending Book (₹ Bn) 347
Slide 15: Diversification (Incl. Housing)
Diversification (Incl. Housing) Portfolio mix by products & customers Mid Corporate Structured 16% Finance 5% Project Loan 1% TL / WCDL 5% Cons Fin 5% Digital & Unsecured 2% Home Loan 7% Retail TL / WCDL 15% 13% LAP 3% LAS 1% Broker 1% Large Corporate Loan Book Mix 35% Structured Finance 9% ₹ 411 Bn
Slide 16: Aditya Birla Finance Key Financials, Value Drivers & Metrics
Aditya Birla Finance Key Financials, Value Drivers & Metrics Revenue PBT (₹ Mn) Net Worth (₹ Bn) Borrowing Mix (31 Mar’ 17) 34247 Sub-debt 5% 49.9 24633 NCDs 33% Term Loans 37.0 27% 17762 25.8 12012 8319 17.7 7151 6264 10.8 4109 1471 2513 Cash Credit / WCDL 9% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15
Slide 17: Aditya Birla Housing Finance
Aditya Birla Housing Finance A growth business with historically low credit costs Highly underpenetrated market Sector with low credit losses Housing Loan as % of Total Loan Portfolio (2015) Gross & Net NPA of all Housing Finance Companies 37% 34% 35% 32% Gross NPA (%) 1.11 1.08 1.18 Net NPA (%) 18%
Slide 18: Housing Finance Key Financials, Value Drivers & Metrics
Aditya Birla Housing Finance Key Financials, Value Drivers & Metrics Commenced operations in Footprint expanded to 34 markets Net Worth at ₹ 4211 Mn as on Turned profitable within 7 quarters October ‘14 by March ‘17 June ‘17 of full operations Lending Book (₹ Mn) Yields & NIM (%) 48,162 41,363 10.9%
Slide 19: Indian Mutual Fund Industry
Indian Mutual Fund Industry Booming flows Highly underpenetrated market Industry AUM has grown at 24% CAGR in 2 years 104% (₹ Bn) AUM to GDP Ratio (%) (Sep-2016) 18,282 13,522 56% 55% 11,885 54% 46% 36% 11% 10% US Brazil UK S. Africa Japan China India World Q4FY15 Q4FY16 Q4FY17 . Note : GDP at curre
Slide 20: Aditya Birla Sun Life AMC
Aditya Birla Sun Life AMC Consistent growth on the back of superior investment performance 4th Largest in India with AUM Alternate Assets AuM at ₹ 195 Bn Multi channel distribution including #4 in Equity AAUM of ₹ 2,252 Bn (Q1 FY 18) (Q1 FY 18) Banks, NDs, IFAs & Direct AUM (₹ Bn) Rising Market Shar
Slide 21: Sun Life AMC Key Financials, Value Drivers & Metrics
Aditya Birla Sun Life AMC Key Financials, Value Drivers & Metrics Revenue & PBT Channel Mix 9,685 % (₹ Mn) 7,652 20% 15% 5,960 5,018 4,052 3,371 24% 3,136 41% 1,403 1,816 1,074 FY13 FY14 FY15 FY16 FY17 Bank Direct IFA National Distributor Revenue PBT SIP book size grew 5.5x B15 Cities Monthly AAuM (
Slide 22: Indian Life Insurance Industry
Indian Life Insurance Industry Growth coming back Highly underpenetrated market Private players driving growth & gaining share Life Insurance premium density per capita (USD) [2015] Individual APE (₹ Bn) 3,431 3,363 532 479 2,569 403 10 year CAGR 2,362 37% 54% 35% Private +7% LIC -1% 690 65% 63% 46%
Slide 23: Aditya Birla Sun Life Insurance Key Highlights
Aditya Birla Sun Life Insurance Key Highlights 1# 5 private life insurer with new 1 #1 in group business Multi channel distribution including 13th Month persistency : 71.5% Agency, Bancassurance, Brokers & business market share at 7.1% (~25% APE share FY17) Direct Marketing New Business Premium (₹ B
Slide 24: Sun Life Insurance Key Financials, Metrics & Value Drivers
Aditya Birla Sun Life Insurance Key Financials, Metrics & Value Drivers 13th Month Persistency (%) VNB Margin % 81.3% 16.6 16.2 17.4 71.5% 14.1 15.2 64.7% 62.2% 60.0% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Total Embedded Value (₹ Bn)* PBT (₹ Bn) 36.9 5.4 34.3 3.7 2.9 32.6 32.8 32.2 1.4 1.
Slide 25: Growth Opportunities
Growth Opportunities Average Ticket Online DirectDirect SME Business Rise in NPAs provides supply INR 8 – 15 Lakhs Financing Size E commerce Anchor Business Expected commercial launch in Q3 / Q4 2018 post RBI approval Customer Low/ Middle Income Group Segment Program Based Lending Busine
Slide 26: Way Forward
Way Forward Branding Digital • Leverage digital assets to • Unified brand – Aditya Birla drive customer acquisition Capital and improve experience Customer Cross Sell • Analytics capability • Unified experience • Cross sell & upsell Distributor Employee • Building leadership pipeline • Common distri
Slide 27: Contact Us
Contact UsCompany Limited Birla Sun Life Asset Management Aditya Birla Capital Limited CIN: U67120GJ2007PLC058890 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, Mumba
Slide 28: Disclaimer
Disclaimer Birla Sun Life Asset Management Company Limited 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 sol
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