Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q2 FY23 Earnings Presentation
78 slides from Aditya Birla Capital's earnings presentation, November 2022
Slide 1: Aditya Birla Capital Limited
Aditya Birla Capital Limited
Slide 2: Diversified Financial Services Platform from Trusted conglomerate
Diversified Financial Services Platform from Trusted conglomerate Grasim Promoter & Promoters Group 54.2% 16.8% 100% 100% 51% 50% 51% Non Bank Housing Finance Life Insurance Asset Management Health Insurance Financial Company ADITYA BIRLA HOUSING ADITYA BIRLA SUN LIFE ADITYA BIRLA SUN LIFE ADITYA BI
Slide 3: Our Approach: ONE ABC
Our Approach : ONE ABC ONE ABC ONE P&L ONE ONE ONE CUSTOMER EXPERIENCE TEAM Providing complete lifecycle solution to customers and their ecosystem Aditya Birla Capital Limited 3
Slide 4: One Customer: To deliver Comprehensive Offerings
One Customer: To deliver Comprehensive Offerings Universal Financial Services Provider serving lifecycle financial needs of a consumer PROTECTING INVESTING FINANCING ADVISING Life Insurance Mutual Funds Home Finance Money For Life Planner Health Insurance Wealth Personal Finance Motor Insurance Stoc
Slide 5: One Experience: Using Strong Operating Levers
One Experience: Using Strong Operating Levers Improving customer experience Catering to diverse needs of and optimize acquisition cost 6 1 retail and institutional customer and their Ecosystem At the core of business strategy ONE Access to 140,000+ employees – product innovation, direct acquisition
Slide 6: ABCL Management
One Team VISHAKHA MULYE Chief Executive Officer ABCL Business CEOs RAKESH SINGH A. BALASUBRAMANIAN KAMLESH RAO PANKAJ GADGIL TUSHAR SHAH MAYANK BATHWAL SANDEEP DADIA MD & CEO MD & CEO MD & CEO MD & CEO CEO, Infra & CEO CEO Aditya Birla Finance Asset Management Life Insurance Housing Finance Structur
Slide 7: Q2 FY23 | Performance Highlights
Q2 FY23 | Performance Highlights Strong quarterly performance with accelerated growth momentum across businesses Lending Book1 Gross Premium2 Total AUM3 Consolidated PAT ` 77,430 Cr ` 4,394 Cr ` 3.6 Lac Cr ` 488 Cr ↑ 31% Y-o-Y ↑ 30% Y-o-Y ↑ 24% Y-o-Y ↓ 3% Y-o-Y ↑ 11% Q-o-Q ↑ 14% Q-o-Q Raised ~ Rs. 6
Slide 8: Q2 FY23 | Superior Delivery across Metrics
Q2 FY23 | Superior Delivery across Metrics NBFC and Housing Asset Management Life and Health Insurance 1 Loan Book Growth 1 AUM Growth 1 Premium Growth NBFC HFC LI: HI: Loan Book Loan Book Domestic AAUM Equity AAUM Individual FYP Gross Premium 36% y-o-y 10% y-o-y 6% y-o-y 3% y-o-y 16% y-o-y 62% y-o-
Slide 9: Highest ever Q2 Profitability
Highest ever Q2 Profitability Consolidated PAT ↑ 30% year on year Business-wise Profit before Tax Revenue1 ↑ 21% y-o-y Businesses (INR Crores) Q2 FY22 Q2 FY23 ∆ LY% 7,210 NBFC 387 488 26% 5,970 4,299 4,885 Housing 66 76 15% Asset Management 231 249 8% Life Insurance 50 56 10% Q2 FY20 Q2 FY21 Q2 FY22
Slide 10: On track to deliver ahead of FY24 guidance
On track to deliver ahead of FY24 guidance Metrics for FY24 guidance Q2 FY22 Q1 FY23 Q2 FY23 Targets Retail + SME mix 59% 64% 65% 65% NBFC Net Interest Margin 6.2% 6.47% 6.58% 6.25%+ Return on Assets 2.4% 2.5% 2.4% 2.5-2.7% Affordable mix 33% 39% 41% ~65% Housing Net Interest Margin 4.24% 4.77% 5.13
Slide 11: NBFC
NBFC Aditya Birla Capital Limited 11
Slide 12: Q2 FY23 | Performance Highlights for the Quarter
Q2 FY23 | Performance Highlights for the Quarter Lending Retail Asset Profit Before Return on Book Book Quality1 Tax Equity GS3: PCR: ₹ 64,975 ₹ 24,378 Cr 3.1% 49.3% ₹ 488 Cr 14.7% ↑ 36% Y-o-Y ↑ 92% Y-o-Y PCR ↑ 5% Y-o-Y ↑ 26% Y-o-Y ↑ 145 bps Y-o-Y ↑ 12% Q-o-Q ↑ 20% Q-o-Q CE2: 99.2% in Q2 ↑ 6% Q-o-Q
Slide 13: Our Approach
Our Approach 1 Retail portfolio expansion and increasing granularization 2 Specific industry focus & digital platform to drive SME & B2B segment 3 Acquiring customers at scale using digital ecosystems & data analytics 4 Increase direct sourcing through branch expansion in Tier 3/4 markets 13 13#
Slide 14: Highest ever quarterly PBT
Highest ever quarterly PBT |↑ 26% Y-o-Y | ↑ 6% Q-o-Q Profit Before Tax (in INR Crore) PBT Growth ↑ 6% Q-o-Q 488 ↑ 26% Y-o-Y 459 387 RaR1 & RoA RaR ↑ 28 bps Y-o-Y Continue to deliver superior RoA Q2 FY22 Q1 FY23 Q2 FY23 Return on Equity RoA 2.4% 2.5% 2.4% 14.7% (PY: 13.2%) ↑ 145 bps YoY RoE 13.2% 14.
Slide 15: Strong momentum in Loan Book growth
Strong momentum in Loan Book growth Overall Loan Book (in INR Crore) Key Highlights 64,975 Overall Book Growth ↑ 12% Q-o-Q 57,839 ↑ 36% Y-o-Y 47,733 Customer Count 5.3 Mn active customers 1.2 Mn added in Q2 Q2 FY22 Q1 FY23 Q2 FY23 Customers (Mn) 1.0 4.8 5.3 15#
Slide 16: Robust growth in Disbursements
Robust growth in Disbursements | ↑ 2.5x Y-o-Y | ↑ 55% Q-o-Q Product-wise Disbursements (in INR Crore) Personal & Consumer Personal & Consumer ↑ 49% Q-o-Q; ↑ 4.4x Y-o-Y Unsecured Business 12,488 Secured Business Corporate/ Mid-Market 3,369 Repeat Business in Digital 8,039 32% portfolio growth 1,877 (
Slide 17: Continued improvement in Retail & SME Loan Book mix
Continued improvement in Retail & SME Loan Book mix Retail & SME1 Loan Book (in INR Crore) SME + Retail1 book 42,034 ↑ 14% Q-o-Q | 50% ↑ Y-o-Y Mix: 59% → 65% 36,875 Branches 28,054 221 Branches Live in H1 62 new branches in H1 Q2FY22 Q1FY23 Q2FY23 Target Footprint SME + Retail1 59% 64% 65% 325+ bran
Slide 18: Well Diversified Product Portfolio
Well Diversified Product Portfolio Segment Personal & Consumer Unsecured Business Secured Business Corporate / Mid-Market Presence Semi-urban Semi-urban Semi-urban/ SME Clusters Top 6-7 Cities Sourcing DSA + Direct + Ecosystems DSA + Ecosystems DSA + Direct Relationship (Direct) ATS Rs 18 k Rs 9.61
Slide 19: Segment Wise Update | Loan Book & ATS
Segment Wise Update | Loan Book & ATS Personal & Consumer 2.8x YoY Growth Secured Business 28% YoY Growth 9,563 27,212 24,949 7,123 23% 15% 21,199 14% 26% 12% 29% 30% LAS 31% 3,356 9% 77% 10% 20% TL / WCDL 13% 74% Consumer Loan 45% 47% 80% LRD 44% Personal Loan Q2FY22 Q1FY23 Q2FY23 LAP Q2FY22 Q1FY23
Slide 20: Continued focus on quality – Portfolio
Continued focus on quality – Portfolio Stage 3 Book Total Stage 1 Stage 2 Stage 3 PCR% Value (Cr.) 47,733 42,329 3,669 1,736 Sep’21 Mix % 100% 88.68% 7.69% 3.64% 44.11% Value (Cr.) 57,839 52,955 3,007 1,876 Jun’22 Mix % 100% 91.56% 5.20% 3.24% 47.96% Value (Cr.) 64,975 59,744 3,227 2,004 Sep’22 Mix
Slide 21: Segment Wise Update | Asset Quality
Segment Wise Update| Asset Quality Personal & Consumer Secured Business PCR GS 3 72.9% 72.6% 76.1% PCR GS 3 37.3% 45.4% 44.2% 7.9% 10.2% 7.5% 6.6% 3.1% 2.6% 4.4% 2.5% 2.7% 2.0% 1.8% 1.8% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Unsecured Business Corporate / Mid-Market PCR GS 3 26.4% 28.5% 34
Slide 22: Use of Analytics for Sourcing, Underwriting and Collections
Use of Analytics for Sourcing, Underwriting and Collections SOURCING UNDERWRITING COLLECTIONS New to Business Customers Identify Credit Worthy Customers Root Cause Identification ▪ Create scorecard for NTC customers Custom Multiple Application Scorecards for Digital, Identify cohorts with challenges
Slide 23: Acquiring customers at scale using digital & data analytics
Acquiring customers at scale using digital & data analytics Strong outcomes demonstrating strength of our technology capability in customer acquisition, servicing and process automation 99% 1.2 Mn 49% ~32% Customer Customers Customers Of overall personal Digital portfolio Acquisition onboarded digit
Slide 24: Ecosystem Customers
Enhancing MSME proposition by investing in a differentiated platform solution Digital Partners Manage Products business Products & Features on Platform Existing to ABFL Invest Data analytics/ AI Mobile Ecosystem Customers Existing to ABCL Customer one view Daily Lending Web Insure + Service Promote
Slide 25: Well matched ALM with comfortable liquidity surplus
Well matched ALM with comfortable liquidity surplus ALM optimised for liquidity and costs (as on 30th Sep 2022) Diversified Borrowing Mix 2% 100% 100% 3% Cumulative Outflows 7% 6% Cumulative Inflows 8% 79% 82% 11% 46% 51% 45% 38% 29% 36% 28% 23% 19% 22% 12% 15% 5% 8% Sep’21 Sep’22 Term Loan NCD CP E
Slide 26: Key Financials – Aditya Birla Finance Limited
Key Financials – Aditya Birla Finance Limited Quarter 1 Quarter 2 Figures in Crs Half Year FY 22-23 FY 21-22 FY 22-23 Key Performance Parameters FY 21-22 FY 22-23 (CY) (PY) (CY) (PY) (CY) 57,839 47,733 64,975 Lending book 47,733 64,975 11.85% 11.77% 12.22% Average yield (Incl. Fee Income) 11.78% 12.
Slide 27: Aditya Birla Housing Finance
Aditya Birla Housing Finance Aditya Birla Capital Limited 27
Slide 28: Q2 FY23 | Performance Highlights
Q2 FY23 | Performance Highlights Disbursement NIM % Profit Return on Book Before Tax Equity ₹ 1,237 Cr ₹ 12,455 Cr 5.13% ₹ 76 Cr 13.87% ↑ 40% Q-o-Q ↑ 3% Q-o-Q ↑ 36 bps Q-o-Q ↑ 6% Q-o-Q ↑ 19 bps Q-o-Q ↑ 24% Y-o-Y ↑ 10% Y-o-Y ↑ 89 bps Y-o-Y ↑ 15% Y-o-Y ↑ 12 bps Y-o-Y Strong quarterly performance Focus
Slide 29: Our Approach
Our Approach 1 Momentum in disbursement & book growth 2 Robust Financial Performance & Liquidity management 3 Continued focus on quality of book 4 Accelerating digitization for customer on-boarding Aditya Birla Capital Limited 29
Slide 30: Momentum in disbursement & book growth
Momentum in disbursement & book growth Momentum in disbursement Growth in book ↑ 10% Y-o-Y ↑ 24% Y-o-Y 1,237 11,327 12,049 12,455 5% 6% 6% 6% 7% 995 7% 886 Value 27% 32% 34% 23% 19% 18% Growth 40% 35% 35% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Prime - HL Prime - LAP Affordable - HL Affordab
Slide 31: Robust Financial Performance
Robust Financial Performance NET INTEREST MARGIN COST INCOME RATIO Operating with healthy margins Maintained CIR with investment across channels 4.77% 5.13% 41.13% 41.42% 4.24% 35.82% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Opex 46 61 68 NII 121 142 157 Opex2 % 1.60% 2.05% 2.22% COST OF BORR
Slide 32: Well matched ALM with liquidity surplus
Well matched ALM with liquidity surplus ALM optimised for liquidity and costs (as on 30th Sep 2022) Borrowing Mix 100% 100% 8% Term Loan Cumulative Outflows 7% 13% 79% 79% Cumulative Inflows NCD 15% 16% NHB 55% 70% 15% 32% 35% Others* 25% 12% 14% 14% 16% 16% 7% 9% Sep’21 Sep’22 0-1 months 1-2 months
Slide 33: Continued focus on quality – Portfolio
Continued focus on quality – Portfolio Stage 3 Book Total Stage 1 Stage 2 Stage 3 PCR% Value 11,327 10,189 782 355 Sep’21 Mix % 100% 89.96% 6.91% 3.14% 34.30% Value 12,049 11,026 595 428 Jun’22 Mix % 100% 91.55% 4.90% 3.55% 33.60% Value 12,455 11,447 560 448 Sep’22 Mix % 100% 91.90% 4.50% 3.60% 33.0
Slide 34: Continued focus on quality – Origination
Continued focus on quality – Origination Segment wise contribution Particulars Q2 FY22 Q1 FY23 Q2 FY23 Improved focus towards Salaried Salaried & SEP 47% 56% 57% & SEP segment SENP 53% 44% 43% Credit bureau score mix Particulars Q2 FY22 Q1 FY23 Q2 FY23 > 700 74% 78% 82% Focus on quality of New to cr
Slide 35: Resulting in consistent improvement in return metrices
Resulting in consistent improvement in return metrices PAT Return on Assets Return on Equity 1 ↑ 15% Y-o-Y ↑ 13 bps Y-o-Y ↑ 12 bps Y-o-Y 1.94% 59 56 1.89% 13.87% 52 1.81% 13.76% 13.68% Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 FY23 1 Based on monthly compounding of annualise
Slide 36: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited Quarter 1 Quarter 2 Figures in Crs Half Year FY 22-23 FY 21-22 FY 22-23 Key Performance Parameters FY 21-22 FY 22-23 (CY) (PY) (CY) (PY) (CY) 12,049 11,327 12,455 Lending book 11,327 12,455 10.16% 10.23% 10.81% EIR 10.29% 10.49% 5.38% 5.99% 5.68%
Slide 37: Aditya Birla Sun Life AMC Ltd.
Aditya Birla Sun Life AMC Ltd. Aditya Birla Capital Limited 37
Slide 38: Q2 FY23 | Key Performance Highlights
Q2 FY23 | Key Performance Highlights Mutual Fund Equity Individual Investor Monthly SIP QAAUM QAAUM MAAUM Folios Book2 ₹ 2,82,580 Cr ₹ 1,19,086 Cr ₹ 1,43,322 Cr 8.1 Mn ₹ 931 Cr Market Share1 Market Share 6.0% Added 0.2 Mn ↑ 9% Q-o-Q folios in Q2 FY23 ↑ 4% Q-o-Q 8.2% Mix 42.1% Delivering strong profi
Slide 39: Our Approach
Our Approach 1 Focus on delivering sustained investment performance and portfolio differentiation Building Retail Franchise by increasing geographic reach and strengthening Multi 2 Channel distribution network 3 Focus on growing Passives and Alternate asset segment 4 Leverage digital platforms for c
Slide 40: AUM Highlights
AUM Highlights Closing Assets Under Management Average Assets under Management Overall MF Equity MF Equity MF Mix Overall QAAUM Equity MF Equity MF Mix ↑ 5% Q-o-Q ↑ 6% Q-o-Q 43% (PQ: 43%) ↑ 0.4% Q-o-Q ↑ 2% Q-o-Q 42% (PQ: 41%) 7% Y-o-Y 2% Y-o-Y 43% (PY: 41%) 6% Y-o-Y ↑ 3% Y-o-Y 42% (PY: 39%) 2,
Slide 41: Scaling Retail Franchise
Scaling Retail Franchise Equity QAAUM Individual MAAUM B-30 MAAUM Size ` 1,19,086 Crore ` 1,43,322 Crore ` 46,787 Crore AAUM Mix 42.1% (Q2 FY20: 34.9%) 49.9% (Sep-19: 48.4%) 16.3% (Sep-19: 14.3%) ↑ 10% ↑ 6% ↑ 10% 1,19,086 1,43,322 46,787 88,539 1,20,701 3 Years 35,563 Growth Q2 FY19 Q2 FY23 Sep-19 S
Slide 42: Focus on Growing SIP Book
Focus on Growing SIP Book Building sustainable SIP Book Long Tenure SIP Book (2) Quarterly New SIP 1 % Count of Total SIPs SIP Book in ` Cr.(1) registrations Count (‘000) #of Live Outstanding SIPs1 (Mn) (Sep-22) 931 320 3.26 90% 2.99 81% 258 867 Sep-21 Sep-22 Over 5 Years Over 10 Years Sep-21 Sep-22
Slide 43: Large & well-diversified distribution network
Large & well-diversified distribution network Continue to expand distributor base & empaneled 4400 + new MFDs in H1 FY23 280+ 68,000+ 80+ 85+ 270+ 80+ Locations MFDs Banks Emerging Market National Digital Over 80% are Locations Distributors Partners in B30 cities Servicing Investors across 19,000+ P
Slide 44: Growing Passives and Alternative Assets Business
Growing Passives and Alternative Assets Business PASSIVES 2,964 5,302 9,962 12,695 16,923 1,163 Passive AUM (in Rs Cr)1 ~4,53,000 6X 1,115 FOF Investor Folios Serviced Growth in Passives2 1,167 14,017 Index 10,161 7,439 ETF 878 1,039 3,187 10+ 1,078 1,008 1,076 1,355 1,420 1,742 Product Pipeline Sep
Slide 45: Digital Assets & Partnerships
Digital Assets & Partnerships Customer Customer Distributor Digital Onboarding 75% Servicing 88% Onboarding 92% Transactions 82% Enhancing Digital Capabilities Customer Enhancing investor experience & instant access Automation Automated internal processes to bring in Journey to functionalities by pr
Slide 46: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited Quarter 1 Quarter 2 Figures in Rs Crore Half year FY 22-23 FY 21-22 FY 22-23 FY 21-22 FY 22-23 Key Performance Parameters ( CY ) ( PY ) ( CY ) ( PY ) ( CY ) 2,81,527 3,00,289 2,82,580 Mutual Fund AAUM 2,87,872 2,82,053 1,16,809 1,16,151 1,19,086 Mut
Slide 47: Aditya Birla Sun Life Insurance Ltd.
Aditya Birla Sun Life Insurance Ltd. Aditya Birla Capital Limited 47
Slide 48: H1 FY23 | Performance Highlights
H1 FY23 | Performance Highlights Individual FYP1 Group FYP Total Premium AUM Net VNB2 ` 1,051 Cr ` 2,166 Cr ` 6,373 Cr ` 64,643 Cr 12.3% ↑ 20% Y-o-Y ↑ 61% Y-o-Y ↑ 30% Y-o-Y ↑ 13% Y-o-Y ↑ 473 bps Y-o-Y Industry at 19% Industry at 51% Superior investment Target to deliver 2 Yr CAGR - 26% returns 18%+
Slide 49: Our Approach
Our Approach 1 Focus on Consistent growth in Individual and Group Business 2 Diversified and Scaled up Distribution mix with focus on Direct business 3 Customer Oriented Products, Analytics supported business and Active Risk management Improvement in Quality parameters including persistency cohorts
Slide 50: Focus on Consistent growth
Focus on Consistent growth Individual FYP1 Group New Business Premium ABSLI Private Players Industry ABSLI Private Players Industry H1 Growth ↑ 20% Y-o-Y ↑ 21% Y-o-Y ↑ 19% Y-o-Y H1 Growth ↑ 61% Y-o-Y ↑ 27% Y-o-Y ↑ 51% Y-o-Y Q2 Growth ↑ 16% Y-o-Y ↑ 7% Y-o-Y ↑ 5% Y-o-Y Q2 Growth ↑ 23% Y-o-Y ↑ 9% Y-o-Y
Slide 51: Diversified and scaled up distribution mix
Diversified and scaled up distribution mix Diversified Distribution network enabling Pan India presence 3,000+ 340+ 54,500+ 8 14,500+ CITIES Own Branches Agents Banca Tie-ups1 Bank Branches Strong growth across channels (H1 FY23 FYP Rs. In Cr) Channel Mix Product Mix by Channel (H1 FY23) Direct - 2Y
Slide 52: Products and Active Risk strategy
Products and Active Risk strategy Liquidity under stress test scenario New Products and Risk Mitigation 2.6% 6.4% 6.7% ▪ Pre-Approved Sum Assured (PASA) contribution stands at 16% of FYP for H1 FY23 (FY’22 H1 was at 19%). Plan to achieve 25% contribution by Analytics FY23 end. Supported ▪ 29% Upsell
Slide 53: Consistent Quality Improvements
Consistent Quality Improvements Total Renewal Premium (in Cr) Persistency1 Opex to premium ratio2 Renewal Growth Digital Renewal Improving Persistency across all cohorts Controlled Opex ↑ 14% Y-o-Y 77% H1 FY23 H1 FY22 H1 FY21 14.6% 14.5% 13.7% Δ 2Y 22% 86% 83% ↑ 2.8% 13th 83% 71% 2,952 73% 2,597 ↑ 1
Slide 54: Efficient Portfolio Management
Efficient Portfolio Management Strong Investment Processes | Competitive returns | Healthy Portfolio Asset Under Management (in Cr) Composition of AUM 17% 64,643 5% 57,118 24% 46,897 76% 29% 75% 77% Debt Equity 23% 25% 24% H1 FY21 H1 FY22 H1 FY23 42% Investment Performance1 Crisil Benchmark Performa
Slide 55: Increase in Digital Adoption
Increase in Digital Adoption Strong Digital KPIs with focus on scalability, superior customer servicing and use of data analytics to Upsell Customer Customer Self Pre-Approved New Onboarding 97% Digital Renewal 77% Servicing 87% Business 16% Customer Experience Customer Retention Customer Centricity
Slide 56: Steady Increase in Margins & Value
Steady Increase in Margins & Value Embedded Value Net VNB1 FY23 Annualized ROEV of 15.7% Target to double Net VNB by FY26 VNB Margin 17% CAGR 7,780 12.3% 7,009 +10.5% 150 5,727 7.6% 73 1.6% 13 H1 FY21 H1 FY22 H1 FY23 H1 FY21 H1 FY22 H1 FY23 1 Individual + Group Risk Aditya Birla Capital Limited All
Slide 57: Key Financials – Aditya Birla Sun Life Insurance Limited
Key Financials – Aditya Birla Sun Life Insurance Limited Quarter1 Quarter 2 Figures in Rs Crore Half year FY 22-23 FY 21-22 FY 22-23 FY 21-22 FY 22-23 Key Performance Parameters ( CY ) ( PY ) ( CY ) ( PY ) ( CY ) 450 612 806 Individual First year Premium 981 1,256 885 1,042 1,281 Group First year Pr
Slide 58: Aditya Birla Health Insurance Ltd.
Aditya Birla Health Insurance Ltd. Aditya Birla Capital Limited 58
Slide 59: H1 FY23 | Performance Highlights for the Half year
H1 FY23 | Performance Highlights for the Half year GWP Market PBT Total Lives Combined Rs. Crores1 Share2 Rs. Crores Covered Ratio ` 1,271 Cr ` 10.9% ` (149) Cr 24 Million ` 112% ↑ 260 bps ↓ (81) Crores ↑ 66% Y-o-Y ↑ 48% Y-o-Y ↓ 32% Y-o-Y Y-o-Y Y-o-Y Most Diverse Distribution Launched Millennials St
Slide 60: Strategic Investment from ADIA
Strategic Investment from ADIA Key Objective of fund raise Particulars Rs. Crores Pre-Money Valuation 5985 ▪ Growth capital ▪ Strong pedigree financial investor Capital Infusion by ADIA 664 ▪ Benchmark valuation Post Money Valuation 6649 Implied Pre- Money Valuation / FY22 GWP Multiple 3.5x Implied
Slide 61: Industry Trend
Industry Trend Total Premium (GIC) H1 FY23 Growth ABHI Total GWP Growth ABHI SAHI Industry 1,271 +66% +27% +18% 131% 764 550 Market Share H1 FY22 H1 FY23 SAHI Market Share 8.3% 10.9% H1FY21 H1FY22 H1FY23 Industry Market Share 1.9% 2.7% All figures in Rs Crores Source: GI Council segment report YTD S
Slide 62: Our Approach - Health First Data-driven model
Our Approach - Health First Data-driven model Empowering People to lead healthier lives 1 Differentiated model with Health First approach to enhance role of the category 2 Most diversified distribution footprint covering conventional & new age digital platforms 3 End to end digital capabilities for
Slide 63: Differentiated Business Model
Differentiated Business Model Know Your Health Improve Your Health Get Rewarded 03 02 01 HIGH RISK MEDIUM RISK LOW RISK 180+ data WellBeing points Score (WBS) captured Upto 100% 28%* of customers administered Access to Holistic Integrated health & HealthReturnsTM Health Assessment (HA) Wellness Ecos
Slide 64: Unique Product Proposition for Customer Segments
Unique Product Proposition for Customer Segments Most Diverse Product Suite for Diverse Customer Segments & Channels Product Innovation & Market Expansion Segmented Product – New Product ACTIV FIT Incentivize Wellness Targeting 42.6 crs, millennials - 34% of India’s population Upto 100% of Health Re
Slide 65: Scaled-up, Diversified and Digitally enabled Distribution
Scaled-up, Diversified and Digitally enabled Distribution Most Diverse Distribution MIX Total GWP (Rs. Crores) +37% 791 4800+ 200+ 70K 10K+ 3K+ 23% Cities Branches Agents Hospital Sales Force Partners 579 23% 47% 54% 15% 9% 6% 4% Proprietary Banca Digital 9% 9% Growth at 38 % Growth at 18 % Growth a
Slide 66: Distributor Integration
Leveraging Digital to Enhance Customer & Distributor Experience Digital Suit 98% 3.6 Mn Customer First App - Digital health Chatbot & Onboarding & Customers Digital customer eco system WhatsApp Servicing Retention onboarded digitally interactions End to End across businesses Journey Hyper Omni Chann
Slide 67: Leveraging Data Analytics to Drive Excellence in Every Facet of Business
Leveraging Data Analytics to Drive Excellence in Every Facet of Business CLTV – Acquisition, Customer engagement/ Fraud & Risk Persistency & Cross-sell experience Management PASA: 10% GWP lift over last year WBS / HHS Score: 18L WBS generated – Fraud Detection: AI based: >36Cr helping to lower claim
Slide 68: Large Provider Network
Superior Customer Experience 10,277 Large Provider Network 8,918 7,595 H1 FY21 H1 FY22 H1 FY23 96% Best in Industry Claims Settlement Ratio# Extensive backend Claims processing Systems | Digital Claims Adjudication | Centralized Claims Processes # Claims Settlement by Count 68
Slide 69: Business Outcomes
Business Outcomes Revenue (Rs. Cr.) Lives Covered (Mn.) GWP growth at 66% Y-0-Y Lives covered growth at 48% Y-0-Y 24 +131% 1,271 Rural +151% Retail & Rural Byte 16 764 62% 13 Group 550 Retail & Group 10 6 76% 4 6 82% 6 38% 2 18% 24% 4 4 5 H1FY21 H1FY22 H1FY23 H1FY21 H1FY22 H1FY23 Combined Ratio* Pro
Slide 70: Key Financials – Aditya Birla Health Insurance Limited
Key Financials – Aditya Birla Health Insurance Limited Quarter 2 Figures in Rs Crore Half Year FY 21-22 FY 22-23 FY 21-22 FY 22-23 Key Performance Parameters PY) (CY) (PY) (CY) 309 421 Retail Premium 579 791 87 219 Group Premium 184 479 396 640 Gross Written Premium 764 1,271 360 609 Revenue 710 1,2
Slide 71: Other Updates
Other Updates Aditya Birla Capital Limited 71
Slide 72: Other Financial Services Businesses
Other Financial Services Businesses Strong performance across financial metrics across these businesses Revenue ↑ 14% y-o-y PBT ↑ 29% y-o-y ↑ 1.4x ↑ 1.9x 305 60 267 46 215 32 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY21 Q2 FY22 Q2 FY23 General Insurance Broking Stock & Securities Broking Asset Reconstruction Com
Slide 73: Consolidated Profit & Loss
Consolidated Profit & Loss Quarter 1 Quarter 2 Figures in Rs Crore Half year FY 22-23 FY 21-22 FY 22-23 FY 21-22 FY 22-23 Consolidated Profit & Loss ( CY ) ( PY ) ( CY ) ( PY ) ( CY ) 5,590 5,596 6,825 Revenue 9,892 12,415 562 440 593 Profit Before Tax (before share of profit/(loss) of JVs 758 1,155
Slide 74: Update Digital impact metrics
Update Digital impact metrics All metrics are for Q2 FY23 unless specified REVENUE 97% 1.8 Mn 15% 7.3 Lac ENABLEMENT Customers onboarded Customers acquired Of Policy issuance individuals planning through digital digitally across through ecosystem verification call done their goals on Robo customer b
Slide 75: Update on Analytics and Cross-sell
Update on Analytics and Cross-sell LIFE INSURANCE HEALTH INSURANCE AMC LENDING ACQUISITION 14% 9% 1% 75% of Individual First Year of Retail Fresh of Retail Gross Sale of Digital Lending Premium Premium (Excl. Micro/ through Acquisitions Business using ML Byte size products) Scorecards UPSELL & 39% 2
Slide 76: Financial Performance
Financial Performance Figures in Rs. Cr. FY17 FY18 FY19 FY20 FY21 FY22 CAGR H1 FY22 H1 FY23 Y-o-Y (%) (FY17 - FY22) Lending Book 38,839 51,379 63,119 59,159 60,557 67,185 12% 59,060 77,439 31% Gross Insurance Premium 5,778 6,146 8,008 8,882 11,076 13,867 19% 5,685 7,644 34% Active Customers (Mn) 10
Slide 77: 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 78: Disclaimer
Disclaimer 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 Birla Capital Limited, t