Tpl Insurance Ltd · PSX:TPLI
Tpl Insurance — TPL — Investor Presentation (November 2019)
75 slides from Tpl Insurance's investor presentation, Nov 18, 2019
Slide 1: Analyst Briefing
Analyst Briefing TPL Corp Limited Dated November 18, 2019 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain certain “forward-looking statements” with respect to TPL Corp’s expectations and plans, strategy, management’s objectives, future performance, costs, revenue, earnings and other trend information. It is important to note that actual results in
Slide 3: Contents of the Presentation
CONTENTS OF THE PRESENTATION I II II -a II -b II -c II -d Structure Group TPL Trakker TPL Insurance TPL Properties TPL Life Companies Ltd. Ltd. Ltd. Insurance Ltd. II -e III TPL e-Venture Group (Pvt.) Ltd. Performance 3
Slide 4: TPL Corp Structure
TPL Corp Structure #TPLCorp 4 \Y
Slide 5: TPL Group Ownership & Governance – Current Structure
TPL Group Ownership & Governance – Current Structure Legend: Listed Company Un-Listed Company TPL Corp Ltd. Merged Company 78.3% 29.6% 93.5% 99.9% 100.0% 30.0% TPL Life TPL TPL TPL TPL Trakker TPL Logistic Insurance Properties Insurance Security Ltd. (Pvt.) Ltd. Ltd. Ltd. Ltd. (Pvt.) Ltd. TPL Maps T
Slide 6: Group Companies
Group Companies #TPLCorp 6 \Y
Slide 7: TPL Trakker
TPL Trakker #TPLCorp 7 \Y
Slide 8: Profit & Loss Account – Annual Standalone
Profit & Loss Account – Annual Standalone FY18-19 FY17-18 Variance Actual Actual Actual vs LY Actual ------- Rs. ‘000’ -------- Turnover - net 1,771,865 1,660,647 7% Cost of sales (767,115) (661,285) 16% Gross profit 1,004,750 999,362 1% Distribution expense (286,453) (263,753) 9% Administrative exp
Slide 9: Key Highlights
Key Highlights Item Details • Overall business growth of 7% YoY Business Growth • Decline in motor vehicles sales of almost 30% YoY Profitability • Achieved GP margin of 56.71% against budgeted level of 51.74%. • Video Telematics • Fuel management solution Launch of IoT Business • Water management s
Slide 10: Software-as-a-Service Platforms
Software-as-a-Service Platforms Pay-How-You-Drive Insurance Predictive Maintenance Smartphone based telematics enabled Reduce fuel cost and monitor health of engine system, auto insurance solution cooling system, fuel system and induction system 10
Slide 11: Launch of Video Telematics for Fleet Management customers
For our Fleet Management customers we For our Fleet Management customers we have launched Video Telematics launched Video Telematics Vehicle Video Telematics Our vehicle video telematics solutions are complementing our vehicle tracking business helping our existing customers improve the way their fl
Slide 12: Vertical Wise Focus for our IoT Platform
Vertical Wise Focus for our IoT Platform Our New IoT Platform We are actively promoting our new IoT platform for provision of solutions in: Manufacturing Logistics FMCG Water Insurance - Humidity, temperature - IoT enabled Fleet - Integration with - Leakage Monitoring - Usage Based monitoring Manage
Slide 13: Profit & Loss Account - Annual
Profit & Loss Account - Annual FY18-19 FY17-18 Variance Actual vs LY Actual Actual Actual ------- Rs. ‘000’ -------- Turnover - net 99,070 92,090 8% Cost of sales (79,813) (50,620) 58% Gross profit 19,257 41,470 -54% Distribution expense (19,988) (14,391) 39% Administrative expense (23,204) (13,704)
Slide 14: Capitalizing on momentum to set the foundations for the future
Capitalizing on momentum to set the foundations for the future Digital Mapping & Location Services Recognizing TPL Maps TPL Maps has acquired new supremacy in location data and entrants in the Automotive services in Pakistan, HERE Sector, adding to it’s Technologies and TPL Maps dominating share of
Slide 15: A defining year by the numbers
A defining year by the numbers: Digital Mapping & Location Services 1,940,000 150+ 500 POI’s in Database Active LBS API Integrations Devices to be used for LBA pilot 1,870,000 5,200,000+ 7 Addresses in Database Calls made by Enterprise LBS Users Major pilots in pipeline 430,000 4 2 Kms road coverage
Slide 16: Solutions providing critical value for location-driven users
Solutions providing critical value for location-driven users Digital Mapping & Location Services | Proximity Marketing (Location-based Advertising) Location provides the context of audience intent. Proximity Marketing gives brands and advertisers the ability to advertise through different formats on
Slide 17: Solutions built to meet the evolving needs of multiple industries
Solutions built to meet the evolving needs of multiple industries Digital Mapping & Location Services | Strategic API Partnerships Navigation, Mapping and Location Based Analysis and services made available as APIs to be used in designing location based experiences. | Dispatch and Resolution Technol
Slide 18: Calculated steps for future growth and expansion
Calculated steps for future growth and expansion Digital Mapping & Location Services • DATA – Increasing data acquisition and improving the quality control workflow to raise the pace of data ingestion. • LBS – Capitalizing on positive momentum by growing enterprise LBS user-base, securing major cons
Slide 19: Merger of TPL Maps & TPL Rupiya into TPL Trakker
Merger of TPL Maps & TPL Rupiya into TPL Trakker TPL Trakker Limited Connected Digital Mapping & Industrial IoT Car Location Services 19Solutions Synergies • Cost reduction through utilization of a matrix organization structure with a common CEO and HoDs • Maps & Rupiya will benefit from Trakker’s l
Slide 20: Acquisition of Trakker Middle East
Acquisition of Trakker Middle East Trakker Middle East This year through an SPA - Trakker Middle East has now become a full subsidiary of TPL Trakker Ltd This company has: 1,500+ Customers 10,000+ Active Vehicles Presence in 7 Emirates and 5 GCC countries 3,000+ Devices in Oman, KSA and Jordan Some
Slide 21: Our Expansion into the GCC
Our Expansion into the GCC • Using our UAE subsidiary as a Launchpad we are Knowledge Process Outsourcing now aggressively expanding into the GCC market for IoT solutions. • In the first phase we are targeting the top 2 countries in the GCC by IoT spend: • We are also being able to utilize our resou
Slide 22: Raising finance for expansion
Raising finance for expansion Upcoming IPO for TPL Trakker • We are filing for IPO for TPL Trakker to raise 1.4bn • Funds will be utilized for following activities • Growth in core business of Vehicle & Container Tracking within & outside Pakistan • Growth of IoT Business Line (Video Monitoring, Fue
Slide 23: TPL Insurance
TPL Insurance #TPLCorp 23 \Y
Slide 24: Profit & Loss Account – Consolidated incl WTO
Profit & Loss Account – Consolidated incl WTO Jul - Jun-19 Jul – Jun 18 Variance Actual Actual YoY ---------- Rupees '000' ---------- % Gross Written Premium 2,394,000 2,435,908 -2% Net Premium 2,169,594 2,160,855 0.4% Net claims (886,814) (936,264) -5% Management expenses (1,048,746) (1,088,093) -4
Slide 25: Key Highlights
Key Highlights Company achieved net earned premium of Rs. 2,170 million, an increase of 0.4% YoY. This is despite challenging market conditions, 34% depreciation in PKR USD parity, 575 basis points increase in discount rate and introduction of FED on car sales, all factors significantly impacting
Slide 26: Overview of Insurance Market
Overview of Insurance Market Non-life insurance remains significantly under-penetrated in Pakistan and has high upside potential Emerging Latin Emerging Asia America Total Cluster Gross Premiums as a Total Cluster Gross Premiums as a % % of GDP – 2016 Penetration of GDP – 2016 Penetration 0.5% 1.7%
Slide 27: Pakistan’s Insurance Market
Pakistan’s Insurance Market Insurance Industry Segmentation Misc , Pakistan’s Insurance 20% Motor, 20% Industry is categorized into Life and Non Life Insurance Marine, 54% 10% Business The major segments of Pakistan’s Non Life Market share rests with Insurance Industry along Top 3 Non Life Insurers
Slide 28: Company Overview
Company Overview STRONG MARKET POSITION VISION CORE VALUES To dominate the general 6th Largest Insurer in 3rd Largest Motor insurance landscape by providing the most convenient, Trustworthy Pakistan Insurer innovative and affordable solutions through deployment of Transparency 2nd A+ cutting-edge te
Slide 29: Planned Digital Solutions
Planned Digital Solutions Dynamic Pricing Image Recognition Time based Policy Fraud Prevention Issuance Real Time Risk Data Visualization Forecasting Automated Claim Image Search Engine Settlement 29
Slide 30: Consumer Insight Driven Solution
Consumer Insight Driven Solution 30
Slide 31: Key Highlights
Key Highlights First livestock insurance risk underwritten with Naya Jeevan covering about 2000 cattles in Thar District, Afghan Transit Trade Guarantee business launched in July 2019 Company has also entered into various agreements to enhance it’s product and channel portfolio. Some of partne
Slide 32: Product Basket (Conventional + Takaful)
Product Basket (Conventional + Takaful) Auto Health Home Travel › Structural & Content Cover › International Travel Plans › Comprehensive › Micro Health › Landlord Cover › Domestic Travel Plans › Self Insurance › Group Health › Tenant Cover › Students Cover › 2T, 3T & 5T › Hajj / Umrah Cover › Secur
Slide 33: Digital Readiness - Pakistan’s First & Best Insurance App
Digital Readiness - PAKISTAN’s FIRST & BEST INSURANCE APP Buy Insurance via App Request Policy Changes & Renewal Get quotes, conduct a self-survey, attach documents, fill Endorsements to policy can be requested through forms and Get Insured! Auto, Travel, Home & Mobile app. Receive Renewal Notificat
Slide 34: DrivePro - Pakistan’s First Telematics Auto Insurance
DrivePro - PAKISTAN’s FIRST TELEMATICS AUTO INSURANCE A telematics enabled auto insurance solution that offers customers to review & improve driving behavior and collect reward points as per their driving habits 34
Slide 35: DrivePro - Pakistan’s First Pay How You Drive Product
DrivePro - PAKISTAN’s FIRST PAY HOW YOU DRIVE PRODUCT Our point based system lets you track your score, view detailed driving and violation data to spot areas for improvement 35
Slide 36: Existing Opportunity In Motor Insurance Market
Existing Opportunity In Motor Insurance Market Motor Bikes 12,177,400 Motor Cars 2,531,600 Number of vehicles registered in Pakistan is Tractors/Others 1,449,400 around 17,317,600 as of 2015 out of which only 650,000 are insured 3 Wheelers 509,600 As per Motor Vehicle Act 1939, Motor Vehicle must be
Slide 37: Existing Opportunity In Crop & Livestock Insurance
Existing Opportunity In Crop & Livestock Insurance The Crop & Livestock market is predominantly serviced through Banks. TPLI has arranged reinsurance treaty for Crop / Livestock (Agri) from Qatar Re and is getting enlisted with major banks offering the Agri Insurance. CROP INSURANCE LIVESTOCK INSURA
Slide 38: Existing Opportunity - Mass Retail Penetration
Existing Opportunity - Mass Retail Penetration AGGREGATORS ECOMMERCE PLATFORMS MOBILE WALLETS SCRATCH CARDS Partnering with Collaboration with e- Mobile wallets Scratch card based aggregators to: commerce platforms; are in near sight Insurance being Improve product First, as a partner of cap
Slide 39: TPL Properties
TPL Properties #TPLCorp 39 \Y
Slide 40: Consolidated Financial Statement
Consolidated Financial Statement FY18-19 FY17-18 Variance Actual Actual Actual vs LY Actual Revenue 597,206 553,193 8.00% Direct Operating Cost (174,333) (162,751) 7.10% Gross Profit 422,873 390,442 8.30% Administrative Expense (139,391) (146,594) -4.90% Operating Profit 283,482 243,848 16.30% Finan
Slide 41: Key Highlights
Key Highlights Financial Highlights Consolidate agreement based revenue growth of 8.2% YoY Solid contractual rental income growth of 10.0% YoY Enhanced rental rates for 5 floors at an average of 24.9% 8.2% Occupancy level sustained at 97.5% for Centrepoint Consolidated PKR 667 mn Value of
Slide 42: One Hoshang Project
One Hoshang Project Key Project Updates Project: High-end luxurious Residential Apartment Tower and Showrooms with world class amenities Location: Civil Lines area Status: Under-Development Design Team: International Consultants including Squire & Partner, 1508 London, Atelier Ten and Gardin
Slide 43: TPL REIT
TPL REIT Introduction to REIT Management Business Transfer of Centrepoint to REIT Scheme TPLP is in-process to enter into REIT Management Business. TPLP to transfer Centrepoint to REIT Scheme & utilize the proceeds to invest into Real Estate Development Projects The REIT Management Company (RM
Slide 44: Logistics Park
Logistics Park Introduction TPLP is setting up Logistics Park, state of the art bonded warehousing facility on a 10 acre land located in PQ. To be setup as a Joint Venture between TPLP and Strategic Domestic Player, with over two decades of experiences in similar business Logistics Park to con
Slide 45: TPL Life
TPL Life #TPLCorp 45 \Y
Slide 46: Profit & Loss Account
Profit & Loss Account Jul'18 - Jun'19 Jul'17 - Jun'18 Variance Actual Actual ------- Rs. ‘000’ -------- Premium revenue 529,083 403,081 31% Premium ceded to reinsurers (63,251) (40,397) 57% Net Premium Revenue 465,832 362,684 28% Investment income 30,024 16,588 81% Other income / (loss) 6,532 6,204
Slide 47: TPL Life Insurance & Industry Introduction
TPL Life Insurance & Industry Introduction No. of Life Billion-Total 9 Insurance Companies 219 Life insurance Premium-2017 Pakistan’s first life insurance in Pakistan company to offer : Total Paid Up Time based life insurance Capital of TPL Life through mobile 900 Million Virtual life insurance agen
Slide 48: Top Line Growth
Top Line Growth YOY PREMIUM GROWTH TRENDS 529 403 CAGR: 60% Overall Growth from 130 previous Year 31% July 2016 - June 2017 July 2017 - June 2018 July 2017 - June 2018 LOB GROWTH LIFE HEALTH RETAIL CORPORATE 124 405 108 420 323 347 80 56 109 27 103 21 July 16 - June 17 July 17 - June 18 July 17 - Ju
Slide 49: Comparison With The Peers
Comparison With The Peers Targeting Affluent and a Step Focused towards SEC B and below segments underpenetrated segments Growth driven by Driven by Insurtech Bancassurance solutions Brick & Mortar Model Alternate Distribution Models Innovative, paperless & Majorly depending on paper Digital Process
Slide 50: Our Consumer Profile
Our Consumer Profile Millenials Educated unemployed youth The 65% 50
Slide 51: Requirements & Solution Design
Requirements & Solution Design • Pakistan has a Youth Bulge with 60%1 • Offer end to end digital & population ranging from 15 years to 24 paperless insurance solutions years • The segment is highly tech savvy • Enabled by online website & • 24x7 connectivity with the trends, App based platforms know
Slide 52: Usage Based Insurance Platform
Usage Based Insurance Platform • Offers time based products & pricing models Get insured in less than a minute. “Pay as You Use” platform Time based product with hourly and daily rates. Pay Premiums via Mobile Talk time Available on both Android and iOS platforms 52
Slide 53: Requirements & Solution Design
Requirements & Solution Design • Unemployment Rate 5.7%1 • Offer a platform that assist in development of skills • Pakistan has a Youth Bulge with 60%2 population ranging from 15 years to 24 years • Enable individuals to increase or create earning opportunities • 11.7% unemployment rate3 for inter a
Slide 54: Muavin: Pakistan’s First Virtual Agency Platform
Muavin: Pakistan’s First Virtual Agency Platform Sign up to be a ‘Muavin’ Learn via LMS Earn from Anywhere! Help your Customers Sign up and Use online systems to Learn about Insurance Facilitate consumers create an access high quality Products and start earning wanting to learn & account online cont
Slide 55: Requirements & Solution Design
Requirements & Solution Design • Access to insurance is considered a • Retail based pre-issued insurance privilege products • Neglected due to lower payment capacity • Available through retail stores & • 77 million people use public outlets transportation1 • Simplistic in nature with high • 90% acci
Slide 56: TPL Sahulat: First In-app Health Solution By Any Life Insurer
TPL Sahulat : First In-app Health Solution By Any Life Insurer Pharmacy at Home Doctor at Home • Home Delivery of Prescribed & Ordered • Request a doctor visit at Medicines home • Discounts on Medicines Talk To Doctors Via Video, Text or Call Lab Tests at Home Claim Settlement • Lab Samples taken fr
Slide 57: Life Insurance Via Scratch Card
Life Insurance Via Scratch Card • Providing Insurance Inclusion at a low cost to highly susceptible consumer segments • No paperwork required • Based on Scratch Cards and SMS Activation • Special product for motorcycle accidents • Special product for terrorism coverage • Available for as low as PKR
Slide 58: Pakistan’s First Dengue And Naegleria Insurance
Pakistan’s First Dengue And Neaglaria Insurance • Can be availed through Company’s website or mobile app • Exclusively structured epidemic based insurance products for: 1. Mosquito Borne Illnesses: 2. Water Borne Illnesses: • Provides financial assistance to the covered up to PKR 100,000 in case of
Slide 59: Capital Injection For Fuelling Growth
Capital Injection For Fuelling Growth To fund its high intensity growth plans, company is seeking to raise Rs 400-500 mill. Creation of New Marketing & Distribution Channels Awareness about to capture New Products & Segments Channels Technological Advancements Maintain (IT Solvency Developments) Req
Slide 60: TPL e-Ventures
# TPL e-Ventures TPL e-Ventures #TPLCorp 60 \Y
Slide 61: Strategic Overview
Strategic Overview Activities Invest in startups that have the • Synergies with TPL companies potential to disrupt the industry • Market potential Investments they operate in. We look for • Strong, experienced team companies that are of strategic • Financial & Valuation DD value to the group. We ass
Slide 62: Investment Stage & Divestment Opportunities
Investment Stage & Divestment Opportunities $25,000 - $5,000 - $250,000 $1,000,000+ $500,000 Valuation Return on International VC Funds Investment will be via: Angel • IPO Seed Funds Local VC Funds Incubators • Merger into Accelerators‘ Company Grants Friends & Family Founders Crowdfunding Competiti
Slide 63: Becoming an Integral Part of the Ecosystem
Becoming an Integral Part of the Ecosystem Hosted the i2i Demo Day at Centrepoint Travelled to Lahore to meet with NIC & were part of their Investor Panel Lahore, COLABs & Fatima Ventures Was invited to their Demo Day to assess Mentoring & Workshop sessions at for their latest cohort as well NIC Kar
Slide 64: KarloCompare
KarloCompare Business Environment Over H2 2018, as a result of the worsening macroeconomic climate (depreciation of the Rupee against the dollar and increasing interest rates), the business margin were greatly affected. The launch of KarloCompare customized travel experience vertical, aims to serve
Slide 65: TelloTalk
TelloTalk TelloTalk, Inc. is Pakistan’s homegrown social and corporate messaging platform. The start-up aims to accelerate the digitization of Pakistan’s economy by introducing a hyper-localized messaging platform that allows people to communicate, share content, transfer payments and transact with
Slide 66: Rider
Rider The Delivery Logistics Market is fragmented, a lot of companies doing a lot of different things with some service verticals left completely vacant. This forces e-tailers to take on non-core business functions. Incumbents cannot scale due to manual operations and the DISCONNECT between merchant
Slide 67: Group Performance
GROUP PERFORMANCE 67
Slide 68: Group Performance (Consolidated)
Group Performance (Consolidated) Revenue Company Variance FY 18-19 FY 17-18 % ---- Rs. '000' ---- TPL Corp Limited (TPLCORP) 174,752 - 100.0% TPL Trakker Limited (TPLT) 1,771,865 1,660,647 6.7% TPL Insurance Limited (TPLI) with Takaful 2,464,223 1,705,387 44.5% TPL Properties Limited (TPLP) 597,206
Slide 69: Group Performance (Consolidated) with Takaful
Group Performance (Consolidated) with Takaful Revenue FY-19 3,000,000 50% 45% 2,500,000 43% 40% 35% 2,000,000 31% 30% 1,500,000 25% 20% 1,000,000 15% 10% 10% 500,000 8% 0% 2% 5% 3% 0 3% 0% TPLCORP TPLT TPLI TPLP TPL Life TPLM TPLSS TPLR Revenue in Rs. "000" Contribution % 69
Slide 70: Performance with historical trend
Performance with historical trend Consolidated Revenue Rs. 5,748 Million. Growth of 27%. Profit after tax Rs. 172 Million as compared to Rs. 670 Million in the corresponding period. Consolidated Revenue Year Revenue Growth 9,000,000 8,000,000 Rupees in '000' 7,000,000 6,000,000 2015 2,178,542 21
Slide 71: Performance with historical trend
Performance with historical trend Profit before tax Operating Profit 800,000 150% 1,600 50% 700,000 1,400 100% 40% 600,000 1,200 Millions 500,000 1,000 30% Rs. '000' 50% Growth 400,000 800 600 20% 300,000 0% 400 200,000 10% -50% 200 100,000 - 0% 0 -100% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2
Slide 72: Consolidated Profit & Loss Account with Takaful
Consolidated Profit & Loss Account with Takaful (1st Qtr. FY-20) Consolidated Consolidated as at as at Sept 30, 2019 Sept 30, 2018 ---- Rs. '000' ---- Turnover – net 1,349,258 1,321,890 Cost of sales (990,391) (785,671) Gross profit 358,868 536,219 Distribution expenses (102,505) (65,881) Administra
Slide 73: Consolidated Revenue – TPL Corp
Consolidated Revenue – TPL Corp Revenue Company Q1 FY - 20 Q1 FY - 19 FY - 20 (P)* ---- Rs. '000' ---- TPL Corp Limited (TPLCORP) - - 170,423 TPL Trakker Limited (TPLT) - Consolidated 405,409 409,963 2,483,233 TPL Insurance Limited (TPLI) with Takaful 603,831 655,133 3,200,000 TPL Properties Limited
Slide 74: Reduction in Debt
Reduction in Debt TPL Corp holds 93.5% in TPL Insurance Limited. Due to the recent increase in discount rate, management of TPL Corp plans to reduce its debt by dilution in TPL Insurance Limited and TPL Trakker Ltd. 74
Slide 75: Thank You
Thank You #TPLCorp 75 \Y