Reliance Capital — Q2 FY19 Earnings Presentation
42 slides from Reliance Capital's earnings presentation, Nov 27, 2018
Slide 1: Cover letter to BSE and NSE
November 27, 2018 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Sth Floor, Dalal Street,b Fort, Plot No. C/1 , G Block, Sandra Kurla Complex, Mumbai 400 001 Sandra (East), Mumbai 400 051 BSE Scrip Code: 500111 NSE Scrip Symbol: RELCAPITAL Dear Sir(s)
Slide 2: Results for the quarter ended September 30, 2018
Results for the quarter ended September 30, 2018 Investor Presentation November 27, 2018 1
Slide 3: Executive Summary
Executive Summary ReLIANCe CA PITAL 2
Slide 4: Key Performance Highlights
Key Performance Highlights ReLIANCe CA PITAL Total Income Profit After Tax (Rs. billion) {Rs. billion) 53.3 2.8 48.4 Q2 FY19 (1.6) Q2 FY18 Q2 FY19 Total Assets Earnings Per Share {Rs. billion) {Rs.) 901.3 12.3 823.2 Q2 FY19 Sep-17 Sep-18 (5.0) 3
Slide 5: Reliance Nippon Life Asset Management
ReLIANCe CA PITAL Reliance Nippon Life Asset Management 4
Slide 6: Key Highlights - RNAM
Key Highlights - RNAM CAPITAL " One of India’s largest asset manager with AUM of Rs. 4.0 trillion (+6%) " One of the most Profitable AMCs in the Industry (Q2 FY19 PBT: Rs. 1.6 billion; +2%) * Strong recurring flows: Long-term SIP book has helped in building a stable asset base = SIP & STP count amon
Slide 7: Key Highlights - RNAM
Key Highlights - RNAM CAPITAL Received mandate from the Employees’ State Insurance Corporation (ESIC) to manage its funds * Only private AMC to have four prestigious mandates (ESIC, EPFO, NPS, CMPFO) = Equity assets (incl. ETF) crossed Rs. 1.0 trillion - up 25% MF Equity Assets (as a share of total
Slide 8: Financial Performance - RNAM
Financial Performance - RNAM ReLIANCe CA PITAL Assets under Management Mutual Fund AAUMs* No. of SIPs and STPs (Rs. billion) (Rs. billion) (In 'OOOs) 4,048.7 3,017 3,815.1 134.3 2,167 716.7 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Sep-17 Sep-18 • Debt Equity • ETF Total Income Profit Before Tax (Rs. billion)
Slide 9: Reliance Commercial Finance
ReLIANCe CA PITAL Reliance Commercial Finance 8
Slide 10: Key Highlights - Reliance Commercial Finance
Key Highlights - Reliance Commercial Finance ReLIANCe CA PITAL Diversified and new-age finance solutions provider ---~~----~~----~~----~~----------------~~----~~----------------------~~----~~----~~----~~----------------------------~~----~~----~~----~~----------------~~----------------~~----~~----~~-
Slide 11: Segment Detail - Reliance Commercial Finance
Segment Detail - Reliance Commercial Finance ReLIANCe CA PITAL (As on September 2018) Share in Total AUM '' ... ------------------------------------------------------------ ... ' '' - ... --------------------- - .... \ , ... - ---------------------- ... ,~ ... -------------------- - , \ I ' I '' l :
Slide 12: Financial Performance - Reliance Commercial Finance
Financial Performance - Reliance Commercial Finance ReLIANCe CA PITAL Assets under Management Total Loan Portfolio Asset Quality (Rs. billionl (Rs. billionl (%1 4.3% 176.9 157.5 3.0% 131.6 167.9 1.4% Sep-17 Sep-18 Sep-17 Sep-18 Sept-17 Sept-18 • Gross NPL NetNPL Total Income and Profit Before Tax Yi
Slide 13: Reliance Home Finance
ReLIANCe CA PITAL Reliance Home Finance 12
Slide 14: Key Highlights - Reliance Home Finance
Key Highlights - Reliance Home Finance CAPITAL * AUM increased to Rs. 164.6 billion (+17%) as on September 2018 « 75% of the HL disbursements cater to the Self-Employed segment = Profit before tax at Rs. 1.0 billion (+30%) in Q2 FY19 " NIM stood at 3.8% in Q2 FY19 " Gross NPAs remained stable at 0.8
Slide 15: Financial Performance - Reliance Home Finance
Financial Performance - Reliance Home Finance ReLIANCe CA PITAL Assets Under Management Total Loans Gross NPLs (Rs. billion) (Rs. billion) (%) 164.6 150.6 0.8% 0.8% 140.7 125.6 Sep-17 Sep-18 Sep-17 Sep-18 Sep-17 Sep-18 Total Income and Profit Before Tax Yield and Net Interest Margin Average yield (%
Slide 16: Reliance General Insurance
ReLIANCe CA PITAL Reliance General Insurance 15
Slide 17: Key Highlights - Reliance General Insurance
Key Highlights - Reliance General Insurance ReLIANCe CA PITAL ▪ 9.7% market share in the private sector; largest agency force of 29,000 agents ▪ Gross written premium rose by 20% to Rs. 20.2 billion ▪ Strong growth in segments like private car, health, travel and commercial lines ▪ Online channel: p
Slide 18: Financial Performance - Reliance General Insurance
Financial Performance - Reliance General Insurance ReLIANCe CA PITAL Gross Written Premium Profit Before Tax Combined Ratio (Rs. billion) (Rs. billion) (%) 20.2 0.6 109% 0.5 16.9 107% Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Business mix Investment Book No. of Policies Issued (Rs. billion) (I
Slide 19: Reliance Nippon Life Insurance
ReLIANCe CA PITAL Reliance Nippon Life Insurance 18
Slide 20: Key Highlights - Reliance Nippon Life Insurance
Key Highlights - Reliance Nippon Life Insurance ReLIANCe CA PITAL (----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1 \. Focus on profitable and healthy
Slide 21: Financial Performance - Reliance Nippon Life Insurance
Financial Performance - Reliance Nippon Life Insurance ReLIANCe CA PITAL New Business Premium Renewal Premium Total Premium (net of reinsurance) (Rs. billion) (Rs. billion) (Rs. billion) 7.9 2.6 10.4 2.1 9.6 7.6 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Weighted Received Premium Profit Before
Slide 22: Financial Performance - Reliance Nippon Life Insurance
Financial Performance - Reliance Nippon Life Insurance ReLIANCe CA PITAL No. of Individual Policies sold Average Ticket size (approx.)# (In 'OOOsl (Rs.l 55 41,616 32,484 52 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Funds under Management Persistency (Rs. billion) (%1 74% 196.1 179.8 68% Sep-17 Sep-18 Q2 FY18
Slide 23: Broking and Distribution Businesses
ReLIANCe CA PITAL Braking and Distribution Businesses 22
Slide 24: Key Highlights - Broking and Distribution
Key Highlights - Broking and Distribution ReLIANCe CA PITAL Transformation in the last two years -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, r '
Slide 25: Financial Performance - Broking and Distribution
Financial Performance- Braking and Distribution ReLIANCe CA PITAL Total income & Profit Before Tax Wealth Management AUM (Rs. million) (Rs. billion) 50.3 an 757 40.0 79 85 Sep-17 Sep-18 Q2 FY18 Q2 FY19 • Total Income Profit Before Tax Equity and Commodity Average Daily Turnover Broking Accounts (Sto
Slide 26: Shareholding Pattern
Shareholding Pattern ReLIANCe CA PITAL (As on September 30, 2018) Indian Public & Others 19.5% Dis I Banks I Mfs 8.4% ▪ 7.6 lakh shareholders ▪ Part of MSCI Global Small Cap Index ▪ Traded in futures & options segment 25
Slide 27: Thank you
RELIANCE ~ Thank you 26
Slide 28: Annexure
ReLIANCe CAPITAL Annexure 27
Slide 29: IND AS Transition: key changes
IND AS Transition ReLIANCe CA PITAL Key Changes Impacted Line Item IGAAP INDAS Income from Only diminution in Fair Value of Operations/Other fair value Fair Value Method Investments Expenses considered ""====== l"""_ _c_r_ ed_i_t c_o_s_ts_ ____,j i Other Expenses J Specified by Regulators Expected C
Slide 30: IND AS Transition: ECL - General Model
IND AS Transition: ECL - General Model ReLIANCe CA PITAL Change in credit quality since initial recognition Stage 1 Stage 2 Stage 3 Non-performing (Credit impaired assets) Lifetime expected credit loss 29
Slide 31: Reconciliation of Consolidated profit with previous GAAP
Reconciliation of Consolidated profit with previous GAAP ReLIANCe CA PITAL (Rs. million) Q2 FY18 Net profit or loss as per Previous GAAP (Indian GAAP) 3,520 Add/Less: Adiustments Expected Credit Loss on Loan and Interest (ECL) (379) Effect of scheme amalgamation I merger 408 EIR Adiustment (62) Fair
Slide 32: Consolidated Financials - Balance Sheet
Consolidated Financials ReLIANCe CA PITAL -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------.,: Balance Sheet : -----------------------------------------
Slide 33: Consolidated Financials - Funding Profile
Consolidated Financials ReLIANCe CA PITAL (----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------1 i _________________________________________________________
Slide 34: Consolidated Financials - Profit & Loss statement
Consolidated Financials ReLIANCe CA PITAL - ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- l '' ' Profrt & Loss statement j' (Rs. million) Q2 FY19 Q2
Slide 35: Financials - RNAM
Financials - RNAM ReLIANCe CA PITAL (~-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -...,~ i __________________________________________________________
Slide 36: Financials - Reliance Commercial Finance
Financials - Reliance Commercial Finance ReLIANCe CA PITAL (~-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -...,~ i ___________________________________
Slide 37: Financials - Reliance Home Finance
Financials - Reliance Home Finance ReLIANCe CA PITAL (~-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -...,~ i _________________________________________
Slide 38: Financials - Reliance General Insurance
Financials - Reliance General Insurance ReLIANCe CA PITAL ( ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------...,~ I \ Profrt & Loss statement i.. ______
Slide 39: Financials - Reliance Nippon Life Insurance
Financials - Reliance Nippon Life Insurance ReLIANCe CA PITAL ( ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------...,~ i.. ______________________________
Slide 40: Financials - Broking and Distribution
Financials - Broking and Distribution ReLIANCe CA PITAL ( ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------...,~ i.. ____________________________________
Slide 41: Human Capital
Human Capital ReLIANCe CA PITAL : ( -------------------------------------------------------------------------------------------... ▪ Over 19,740 employees 1' -------------------------~~~!~~~~-!~~~--~-~~~~-------------------------'j ▪ 75% in Customer Facing roles ▪ Young workforce Graduates ▪ Post Gr
Slide 42: Disclaimer
Disclaimer ReLIANCe CA PITAL This presentation does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer, or a solicitation of any offer, to purchase or sell any securities under the Companies Act, 2013 and the rules made