Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Non-Deal Roadshow (September 2018)
40 slides from Bajaj Finserv's roadshow presentation, Sep 21, 2018
Slide 1: Bajaj Finserv exchange disclosure letter on investor meetings
BA..JA..J FINSERV 21 September 2018 To To The Corporate Relations Department. Corporate Listing Department BSE Limited National Stock Exchange of India Ltd. 1st Floor, New Trading Ring Exchange Plaza, 5th Floor, Plot No.C-1, Rotunda Bµilding, P J Tower G Block, Bandra-Kurla Complex, Sandra Dala.l St
Slide 2: Bajaj Finserv Limited Investor Presentation – FY18
BAJAJ FINSERV LIMITED Investor Presentation – FY18* Financial Year : April to March
Slide 3: Bajaj Group Structure
BAJAJ GROUP STRUCTURE Bajaj Holdings & Investment Limited* 31.54% 39.16% Bajaj Auto Limited@ Bajaj Finserv Limited# 54.99% 74% 74% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz Life Insurance Insurance Company Limited Company Limited • Diversified NBFC present in • Highest PAT among priv
Slide 4: Bajaj Finserv Vision
BAJAJ FINSERV’ VISION Life cycle needs of Investment/ Income Individual & Asset acquisition Asset protection Wealth protection SME management customers General Insurance Life Insurance Lending Life Insurance Fixed Deposits Pensions Mutual funds Retail Consumer: Retail All Bajaj Finserv’s businesses
Slide 5: Bajaj Finserv: Core Strengths
BAJAJ FINSERV : CORE STRENGTHS Outstanding heritage & One of oldest and most trusted business groups with PAN India presence with a high Impeccable reputation level of integrity and Corporate Governance Innovation and Technology Differentiation through innovative and disruptive products & services d
Slide 6: Opportunity Spectrum: NBFC
BAJAJ FINSERV’S OPPORTUNITY SPECTRUM: NBFC Household debt to GDP (%) 10.9 10.2 9.9 9.4 2014 2015 2016 2017 India’s Household debt to GDP gradually Household debt to GDP (%) increasing, however, it is much below major Emerging and World economies 86.7 78.7 73.3 48.4 24.7 10.9 16.2 India Russia Brazil
Slide 7: Opportunity Spectrum: Non Life Insurance
BAJAJ FINSERV’S OPPORTUNITY SPECTRUM: NON LIFE INSURANCE Non Life Insurance Per Capita Premium (USD) 2,449 1,031 13 100 147 151 285 India Russia China Brazil UK US Non-life per capita World Average Non Life Per Capita and Non Life Insurance penetration to GDP penetration to GDP way below advanced ec
Slide 8: Opportunity Spectrum: Life Insurance
BAJAJ FINSERV’S OPPORTUNITY SPECTRUM : LIFE INSURANCE Household Sector Savings (Financial and Non Financial Savings) Financial 55% 48% 57% 67% Savings are at 59% levels below Major FY03 , contribution indicating of Financial Financial untapped Savings in 52% Savings 45% potential FY08 post 43% 41% C
Slide 9: Bajaj Finserv – Customer Franchise as of March 2018
BAJAJ FINSERV – CUSTOMER FRANCHISE AS OF 31 MARCH 2018 Bajaj Allianz General Bajaj Allianz Life Bajaj Finance Limited Prospect Franchise Insurance Company Insurance Company 26.2 MM 55.9MM 18.6 MM 52.1 MM 152.8 MM 8
Slide 10: Bajaj Finserv - Consolidated Financial Highlights
BAJAJ FINSERV - CONSOLIDATED FINANCIAL HIGHLIGHTS USD MM at 1USD = Rs.65 Financials Snapshot, USD MM FY13 FY14 FY15 FY16 FY17 FY18 CAGR Life Insurance (GWP) 1,060 899 926 907 951 1,166 2% General Insurance (GWP) 632 705 815 908 1,183 1,459 18% Retail Finance 478 627 834 1,128 1,537 2,072 34% Investm
Slide 11: BFS and BFL Delivered Consistent Long-Term Returns to Shareholders
BFS AND BFL HAVE DELIVERED CONSISTENT LONG- TERM RETURNS TO SHAREHOLDERS USD MM at 1USD = Rs.65 Bajaj Finserv & Bajaj Finance Sep’17 – BFL QIP $692 MM 5 year CAGR# (FY13-FY18) BFL : 73% • BFL included in Nifty 50 index from Sep 2017 BFS : 46% • BFS included in Nifty 50 index from April, 2018 Jun’15
Slide 12: Bajaj Finserv – Annual Velocity
BAJAJ FINSERV – ANNUAL VELOCITY Bajaj Allianz General Bajaj Allianz Life Bajaj Finance Limited Bajaj Finserv Limited Insurance Company Insurance Company Number of loans Number of policies Number of policies booked in FY18 FY18* FY18* 15.32 MM 13.03 MM 2.20 MM 30.55 MM Insurance figures :* NoP for BA
Slide 13: Bajaj Finance
BAJAJ FINSERV BAJAJ FINANCE
Slide 14: What Does Bajaj Finance Stand For?
WHAT DOES BAJAJ FINANCE STAND FOR? “Diversified Non-bank with strategy & structure of a bank ” “Focused on mass affluent & above clients with a strategy to cross sell” “Diversified financial services strategy envisages an optimal mix of risk and profit to deliver a sustainable business model” “Busin
Slide 15: Key Strategic Differentiators
KEY STRATEGIC DIFFERENTIATORS Overall franchise of 26.22 MM and Cross sell client Focus on mass affluent and above clients base of 15.43 MM Strong focus on cross selling assets, insurance Centre of Excellence for each business vertical to bring efficiencies across businesses and improve and wealth p
Slide 16: BFL: Key Highlights FY 2017-18
BFL : KEY HIGHLIGHTS FY 2017-18 Consolidated AUM of $12,928 MM as on 31 March 2018, up by 40% from $9,261 MM as on 31 March 2017 BHFL a 100% subsidiary fully operational in FY18, AUM stood at $552 MM as on 31 March 2018 Consolidated PAT of $411 MM, up by 46% from $282 MM Strong Capital Adequacy
Slide 17: Bajaj Finance's Businesses
BAJAJ FINANCE’S BUSINESSES BAJAJ FINANCE Consumer SME Commercial Rural • Largest consumer • Focused on affluent • Wholesale Lending • Unique hub-and-spoke electronics, digital SMEs with an average products covering short, model in 602 locations products & furniture annual sales of around medium and
Slide 18: Customer Franchise
CUSTOMER FRANCHISE Q4 2017 Q4 2018 Total Franchise 20.13 MM 26.22 MM Credit segment filter 14.38 MM 19.77 MM 13.67 MM Overall Cross sell franchise 18.88 MM Non delinquent 12.69 MM customers 17.22 MM Cross sell franchise 11.00 MM 15.43 MM New to Bajaj Finance customers Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18
Slide 19: Bajaj Allianz General Insurance
BAJAJ ALLIANZ GENERAL INSURANCE
Slide 20: BAGIC: Key Highlights FY 2017-18
BAGIC : KEY HIGHLIGHTS FY 2017-18 Industry beating GDPI growth of 24% in FY18 (Industry growth of 17% FY18) Profit after tax (PAT) increased by 27% to $142 MM. in FY18 Policy issuance crosses 10 MM. mark to reach around 13.0 MM. in FY18, (FY17 9.9 MM. ) Solvency as at 31 March 2018 stood at 276%
Slide 21: Bajaj Allianz General – Key Strategic Differentiators
BAJAJ ALLIANZ GENERAL – KEY STRATEGIC DIFFERENTIATORS STRATEGY Strategy is to focus on retail product lines, with diversified distribution supported by prudent underwriting and strong cash flow generation, while delivering excellence in customer service. DIFFERENTIATORS “Number 1 in Profits and Numb
Slide 22: Virtual Points of Presence – An Industry First
VIRTUAL POINTS OF PRESENCE –AN INDUSTRY FIRST USD MM at 1USD = Rs.65 VSO Success Graph 73 1400 GWP growth 6.0% 95% 1200 5.0% GWP CAGR 37 5.0% 1000 VSO : 352% 4.0% 800 3.0% 600 3.2% 13 2.0% 400 1 200 1.4% 1.0% 0.1% 0 0.0% FY15 FY16 FY17 FY18 No of VSOs VSO GWP VSO contribution to co GWP • Initiated i
Slide 23: BAGIC - Diversified Distribution with Bancassurance Network
BAGIC- DIVERSIFIED DISTRIBUTION WITH STRONG NETWORK OF BANCASSURANCE PARTNERS 120% LOB Mix • Over 60 Corporate 100% Agent – Banca 7% 5% 8% 12% 9% Relationships 13% 80% • Some of the major 19% 20% relationships include 24% Bajaj Finance, J&K 60% Bank, IDBI Bank, United 16% 28% 31% Bank of India, KVB,
Slide 24: BAGIC's Product Suite – Retail Focused
BAGIC’s PRODUCT SUITE – RETAIL FOCUSED Motor Health Miscellaneous • Property • Private Cars • Retail health • Liability • Two Wheeler • Group health • Engineering • Commercial Vehicles • Critical Illness • Travel • Liability Only • Personal Guard • Long term two wheeler • Extended Warranty • Value A
Slide 25: BAGIC: Strong Profit and AUM Growth
BAGIC : STRONG PROFIT AND AUM GROWTH USD MM at 1USD = Rs.65 Net worth AUM : Cash and Investments (as of end of the period) Strong profit growth resulting in high capital efficiency 687 Increase of 37% in FY18 2,280 544 CAGR 20% CAGR 29% 1,666 429 1,417 342 1,209 1,072 256 899 193 FY13 FY14 FY15 FY16
Slide 26: Bajaj Allianz Life Insurance
BAJAJ ALLIANZ LIFE INSURANCE
Slide 27: BALIC: Key Highlights FY 2017-18
BALIC : KEY HIGHLIGHTS FY 2017-18 Industry beating Individual Rated Premium growth for FY18 at 38% to reach $215 MM. vs Industry growth of 19% in FY18 Total New Business (NB) premium for FY18 grew at 29% to reach $660 MM. Industry grew at 11% in FY18 BALIC’s Individual Rated market share improved
Slide 28: Bajaj Allianz Life – Key Strategic Differentiators
BAJAJ ALLIANZ LIFE – KEY STRATEGIC DIFFERENTIATORS STRATEGY • Balance growth with balanced product mix, seeking steady increase in market share. • Business construct is to balance customer value with shareholder returns, focusing on New Business Value DIFFERENTIATORS “Consistently among the top 5 pr
Slide 29: BALIC - Individual Rated Business
BALIC- INDIVIDUAL RATED BUSINESS USD MM at 1USD = Rs.65 BALIC Individual Rated NB BALIC Agency Individual Rated NB 250 41% 38% 50% 200 32% 31% 40% Commencement of transformation 40% 30% 200 215 170 30% 150 20% -11% 20% 150 130 -8% 155 10% 100 10% 111 100 119 0% 99 110 0% -10% 50 50 -10% -20% - -30%
Slide 30: Improvements in Productivity
IMPROVEMENTS IN PRODCTIVITY Individual Regular Premium Business Individual Regular Business Average Ticket Size (USD) Average Ticket Size(Agency) (USD) 23% 25% 32% increase 699 increase 967 increase 570 72% 772 433 increase 448 FY16 FY17 FY18 FY16 FY17 FY18 Persistency Trends (Premium based) Efforts
Slide 31: Balancing Product Mix for Sustainability
BALANCING PRODUCT MIX FOR SUSTAINABILITY New Business Product Mix Individual Rated NB Mix (Annual) 120% 5% 4% 100% 55% 61% 69% 68% 66% 80% 25% 24% 60% 40% 70% 72% 20% 45% 39% 31% 32% 34% 0% FY17 FY18 FY14 FY15 FY16 FY17 FY18 Individual - Unit Linked Individual - Par Individual Group Individual - Non
Slide 32: BALIC - Diversified Distribution
BALIC-DIVERSIFIED DISTRIBUTION New Business Distribution Mix New Business Distribution Mix (Individual) 1% 1% 1% Agency driven, Direct Selling increasing 1% 2% 3% 5% 6% 3% 4% 4% 8% 7% 18% 2% 5% 4% 7% 5% 28% 27% 8% 28% 90% 85% 79% 61% 57% 51% FY16 FY17 FY18 FY16 FY17 FY18 Direct Selling Individual Ag
Slide 33: Bajaj Allianz Life – AUM & Capital Efficiency
BAJAJ ALLIANZ LIFE – AUM & CAPITAL EFFICIENCY USD MM at 1USD = Rs.65 BALIC AUM Net worth 1,418 AUM CAGR OF 6.5% No Capital infusion after FY08 PERFORMANCE HIGHLIGHTS FY18 AUM grew by 5.5% 7,995 Net worth CAGR 14% (FY13 – FY18) 1,304 7,580 4,705 1,174 6,701 6,786 4,289 1,038 5,847 5,966 3,371 3,829 9
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finserv Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any s
Slide 35: Annexures
BAJAJ FINSERV Annexures
Slide 36: Ratings of Group Companies
RATINGS OF GROUP COMPANIES Bajaj Finance • Highest Credit rating of FAAA/Stable & MAAA (Stable) for our Deposit Programme from CRISIL & ICRA Ratings respectively • AAA/Stable Rating from CRISIL,CARE & India Ratings for our Long Term Debt Programme • A1+ rating for our Short Term Debt programme from
Slide 37: Bajaj Finance – Financial Highlights
BAJAJ FINANCE – FINANCIAL HIGHLIGHTS USD MM at 1USD = Rs.65 Financials snapshot, FY13 FY14 FY15 FY16 FY17# FY18# CAGR USD MM Assets under management 2,695 3,702 4,986 6,804 9,261 12,928 37% Income from operations 478 627 834 1,128 1,537 2,072 34% Interest expenses 186 242 346 450 585 713 31% Net Int
Slide 38: Bajaj Allianz General Insurance – Financial Highlights
BAJAJ ALLIANZ GENERAL INSURANCE – FINANCIAL HIGHLIGHTS USD MM at 1USD = Rs.65 Financials Snapshot, USD MM FY13 FY14 FY 15 FY 16 FY 17 FY18 CAGR Capital Infused including premium 43 43 43 43 43 43 Net Worth 193 256 342 429 544 687 29% Cash & Investments 899 1,072 1,209 1,417 1,666 2,280 20% GWP 632 7
Slide 39: Bajaj Allianz Life Insurance – Financial Highlights
BAJAJ ALLIANZ LIFE INSURANCE – FINANCIAL HIGHLIGHTS USD MM at 1USD = Rs.65 Financials Snapshot, USD MM FY13 FY14 FY15 FY16 FY17 FY18 CAGR Capital infused including premium 186 186 186 186 186 186 Net Worth 745 903 1,038 1,174 1,304 1,418 14% Assets under management 5,847 5,966 6,701 6,786 7,580 7,99
Slide 40: Thank You
BAJAJ FINSERV Thank You