Manappuram Finance Limited · NSE:MANAPPURAM
Manappuram Finance — Non-Deal Roadshow (November 2019)
29 slides from Manappuram Finance's roadshow presentation, November 2019
Slide 1: Manappuram Finance Limited Roadshow Presentation
Manappuram Finance Limited Roadshow Presentation November 2019 Gold Loans Microfinance Housing Finance Vehicle Finance
Slide 2: Agenda
Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGHTS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31
Slide 3: Manappuram — overview
Manappuram — overview Leading diversified NBFC in India Group structure • Incorporated in 1992, Manappuram is Non-Banking Financial Company (NBFC) Products offering a diversified product portfolio including gold loans, microfinance loans, Manappuram Finance vehicle and equipment finance, home loan f
Slide 4: Manappuram — Product segment overview
Manappuram — Product segment overview Consolidated business AUM US$3,209m Gold loans Microfinance loans Vehicle and equipment finance Home loan finance On-lending and other loans US$2,147m US$668m US$187m US$81m US$127m AUM % total AUM AUM % total AUM AUM % total AUM AUM % total AUM AUM % total AUM
Slide 5: Manappuram — performance overview
Manappuram — performance overview Strong financial performance with high return ratios Total AUM (US$m) 3,209 2,752 2,444 1,933 2,232 FY17 FY18 FY19 H1FY19 H1FY20 PAT (US$m) 107 131 96 96 60 FY17 FY18 FY19 H1FY29 H1FY20 ROE and ROA 24.7% 28.1% 22.1% 21.2% 18.9% 5.4% 4.9% 4.7% 6.0% 4.2% FY17 FY18 FY1
Slide 6: Key corporate milestones
Key corporate milestones • AUM grows to c.US$1.1bn (INR75bn) in 2011 and crosses over • Acquires 100% of Manappuram Insurance Brokers in 2016 c.US$1.4bn (INR100bn) in 2012 • 4,491 consolidated branches, 4.7m live customers in 22 states • Branch Network reaches 2,908 in 2012 and 6 union territories a
Slide 7: Agenda
Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGTHS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31
Slide 8: Competitive strengths
Competitive strengths 1 Favourable industry dynamics underpin stability and sustainable growth potential 2 Retail focused NBFC, with collateral based lending 3 Well entrenched player in the gold loan NBFC market 4 Long business vintage with a business model that continues to diversify and adapt 5 Co
Slide 9: Favourable industry dynamics — Gold loan
1 Favourable industry dynamics underpin stability and sustainable growth potential— Gold loan Gold NBFCs would benefit with the continuing shift from unorganized to organized gold loan market Gold loan AUM Region-wise AUM split for gold loan NBFC (%)—FY19 45 40.7 20 West, 9% 40 35.5 35 32.8 14.6 15
Slide 10: Favourable industry dynamics — Microfinance
1 Favourable industry dynamics underpin stability and sustainable growth potential— Microfinance Growth pace remains strong despite headwinds faced by the sector Share of MFIs in the overall book expected to improve further GLP1 25 Market size 20.8 (US$bn) 8.5 11.3 15.6 24.1 31.1 39.6 49.5 60.9 20 1
Slide 11: Retail focused NBFC, with collateral based lending
2 Retail focused NBFC, with collateral based lending Pan India presence1 Consolidated customer base (m) Jammu & Kashmir, 10 Himachal Pradesh, 9 Chandigarh, 4 Delhi, 59 Uttarakhand, 8 Punjab, 75 Uttar Pradesh, 137 Haryana, 64 Assam, 18 Bihar, 23 4.7 4.3 4.0 Rajasthan, 94 Tripura, 2 3.8 3.4 Gujarat, 1
Slide 12: Well entrenched player in the gold loan NBFC market
3 Well entrenched player in the gold loan NBFC market Manappuram has an estimated market share of c.18% among the gold loan NBFCs NBFC gold loan AUM (US$bn) Share of banks & non-banks in gold financing 100 12.8 80 11.5 10.2 US$bn 60 77 75 74 74 75 74 73 8.4 9.0 7.5 (%) 6.6 7.1 40 20 23 25 26 26 25 2
Slide 13: Long business vintage — track record across multiple business cycles
4 Long business vintage — track record across multiple business cycles Manappuram has focused equally on asset quality…1 2.02 1.77 0.54 0.55 0.67 0.55 0.32 0.19 0.31 0.33 FY17 FY18 FY 19 H1 FY19 H1 FY20 GNPA (%) NNPA (%) … as much as on asset growth Consolidated2 AUM (US$m) 3,209 2,752 2,232 2,444 1
Slide 14: Business model focused diversification of loan products, geographies and sourcing
4 Business model focused diversification of loan products, geographies and sourcing Manappuram has achieved loan diversification by venturing into the non-gold segments as part of its strategy to minimize its business risk profile – Non-gold segment constitutes 33% of overall loan book AUM segment w
Slide 15: Successful diversification into microfinance
4 Successful diversification into microfinance and establishment of a low-risk, high yield business model Excluding legacy state1 of Tamil Nadu, state-wise and district-wise portfolio Asirvad has stringent customer onboarding process exposure is limited to c.12% and c.1% respectively as of 30 Septem
Slide 16: Strategy of delinking gold business from gold prices
4 Well incorporated strategy of delinking gold business from gold prices reflected in lower LTV and average loan tenor Manappuram has strong expertise in the gold loan business, and is proactively managing the risk exposure in this segment Earlier scenario– 12 month long tenure product Current revis
Slide 17: Consistently strong financial performance and growth
5 Consistently strong financial performance and growth on the back of financial discipline Manappuram has been able to demonstrate sustainable profitability NIM, cost to income and net interest spread 59.1% 52.6% 43.7% 51.2% 47.4% 15.5% 14.2% 14.3% 13.2% 17.6% 13.4% 12.6% 12.0% 12.8% 12.0% FY17 FY18
Slide 18: Access to wide range of funding sources
6 Access to wide range of funding sources Consolidated borrowing mix (H1 FY20) Consolidate borrowing mix evolution (%) Subordinate 1.8 ECB, 1.8% 24.0 20.8 15.2 10.0 0.7 NCDs, 10.0% Bond, 0.7% 0.9 0.8 0.8 21.5 20.9 21.0 23.1 Commercial Cash Credit/ 16.2 20.7 28.4 18.0 Paper, 20.9% STL/WCDL, 38.3% 36.
Slide 19: Robust gold appraisal & safety systems with structured employee training
7 Robust gold appraisal & safety systems with structured employee training ExtensiveExtensive gold appraisal gold appraisal systemsystem In-house capabilities In-house training training capabilities Monitoring Monitoring andsystems and safety safety systems 1• Conducts tested methods for gold apprai
Slide 20: Experienced management team backed by a competent board
8 Experienced management team backed by a competent board Key managerial personal Board of Directors • Postgraduate in Science • Masters degree in • Former Chairman: HDFC • B. Sc.: Calicut University , • B.Com Kerala University, • Managing committee commerce Bank, Unit Trust of India & B.A. LLB : Ke
Slide 21: Agenda
Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGTHS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31
Slide 22: Gold loan — overview
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Slide 23: Gold loan segment: financial and operational summary
Gold loan segment: financial and operational summary Gold loan AUM (US$m) Disbursements (US$m) 12,684 2,147 1,835 1,575 1,661 8,805 7,432 7,121 FY17 FY18 FY19 H1 FY17 FY18 FY19 H1FY20 FY20 Gold AUM presence (H1 FY20) Gold AUM per branch (US$'000) Customer base & avg. loan ticket size Rural 1,000 2.6
Slide 24: Micro finance — overview
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Slide 25: Microfinance: financial summary
Microfinance: financial summary AUM (US$m) MFI AUM – region wise breakup (H1 FY20) North 12% South 668 40% 543 West 14% 345 254 East FY17 FY18 FY19 H1 34% FY20 MFI disbursements region wise (H1 FY20) Customer base (m) 2.0 1.8 Urban 39% 1.5 1.2 Rural 61% FY17 FY18 FY19 H1 FY20 Note: FY17 is as per IG
Slide 26: Agenda
Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGHTS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31
Slide 27: Consolidated profit & loss statement
Consolidated profit & loss statement Particulars (US$m) FY 17 FY 18 FY 19 H1 FY 19 H1 FY 20 Closing AUM 1,933 2,232 2,752 2,444 3,209 Income from operations 479 484 583 276 348 Finance expenses 165 146 187 87 114 Net interest income 314 338 396 189 234 Employee expenses 71 89 102 49 57 Other operati
Slide 28: Consolidated balance sheet
Consolidated balance sheet Particulars (US$m) FY 17 FY 18 FY 19 H1 FY 19 H1 FY 20 Cash & Bank balances 83 103 165 104 244 Investments 1 1 25 7 18 Loans & Advances 1,898 2,158 2,522 2,371 2,977 Fixed assets 26 44 52 43 73 Other assets 113 106 133 126 124 Total assets 2,121 2,411 2,896 2,650 3,437 Sha
Slide 29: Disclaimer
Disclaimer: This presentation and the contents therein are for information purposes only and does not and should not construed to be any investment or legal advice. Any action taken or transaction pursued based on the basis of the information contained herein is at your sole risk and responsibility
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