Bajaj Finance Limited · NSE:BAJFINANCE
Bajaj Finance — Investor Presentation (2015)
29 slides from Bajaj Finance's investor presentation, 2015
Slide 1: Bajaj Finance Limited
BAJAJ FINSERV Bajaj Finance Limited
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the “Company” or “Bajaj Finance”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation do
Slide 3: Table of Contents
Table of Contents Overview and Competitive Strengths Business Strategy Financial Information Annexures 2
Slide 4: Overview and Competitive Strengths
Overview and Competitive Strengths Business Strategy Financial Information Annexures 3
Slide 5: Group Structure
Group Structure Bajaj Holdings and Investment Limited (Listed) 1 31.49% 2 39.16% Bajaj Auto Limited Bajaj Finserv Limited (Listed) (Listed) Auto Business Arm Financial Services Arm 3 61.53% 74.00% 74.00% Bajaj Finance Limited Bajaj Allianz General Bajaj Allianz life Insurance Insurance Company (List
Slide 6: Board of Directors
Board of Directors • He has been the Chief Executive Officer of • A fellow member of both the Institute of Chartered erstwhile Bajaj Auto Limited and was awarded the Accountants of India and the Institute of Company 'Padma Bhushan' by the President of India in March Secretaries of India 2001 • He ha
Slide 7: Key Senior Management Team
Key Senior Management Team • Appointed as Managing Director until March 31, 2020 • 22 years of experience in consumer lending industry • In his previous assignments, he has worked with GE, • Chief Risk Officer and also heads the Horizontal American Express and AIG. He has vast experience Center of E
Slide 8: Executive Summary of Strengths
Executive Summary of Strengths • Promoted by erstwhile Bajaj Auto Ltd. Post the de-merger of Bajaj Auto Ltd, the shareholding in the Company Strong Brand was vested with Bajaj Finserv Ltd and Promoters • One of the most well-known and respected brands in India Diversified • Diversified product lines
Slide 9: Our Journey Thus Far
Our Journey Thus Far AuM crossed Rs. 324 Bn PBT crossed Rs. 13.5 Bn Rights Issue of Rs. 7.4 Bn Preferential issue of warrants to Bajaj Finserv Ltd of Rs.3.9 Bn Rights Issue of Equity Shares FY15 FY14 of Rs.4.1 Bn and of Non Convertible Debentures (NCD) FY13 with detachable warrants FY12 optionally c
Slide 10: What do we stand for?
What do we stand for? Our diversified financial services strategy envisages an optimal mix of risk and profit to deliver a sustainable The business business model construct is to deliver a sustainable ROA(1) & ROE in the medium term Note 1. Refers to return on average receivables under financing 9
Slide 11: Financial Summary
Financial Summary Financials snapshot CAGR Rs. Bn FY11 FY12 FY13 FY14 FY15(1) (FY11-15) Assets under management (AUM) 75.7 131.1 175.2 240.6 324.1 44% Total Revenue (A) 14.1 21.7 31.1 40.7 54.2 40% Finance Costs (B) 3.7 7.5 12.1 15.7 22.5 57% Net Interest Income (NII) (A-B) 10.4 14.3 19.0 25.0 31.7
Slide 12: Product Launch Journey
Product Launch Journey +6 Consumer Loans to doctors SME (currently +28 Loans to +5 +5 Commercial Professionals) Extended Digital Fee Products Warranty EMI Card Product Cross Sell Financing Vendor Financing - Financial Term Loans Co-branded fitness & Purchase Credit Card report Order +3 +3 Financing
Slide 13: Diversified Business Model
Diversified Business Model Consumer SME Commercial Rural (41% of FY15(1) AUM) (53% of FY15(1) AUM) (5% of FY15(1) AUM) (1% of FY15(1) AUM) Vendor Financing - Term Consumer Durable Financing Loan Against Property Loans & Purchase Order Consumer Durable Financing Financing Large Value Lease Rental Dig
Slide 14: Strong Distribution Reach and Customer Franchise
Strong Distribution Reach and Customer Franchise Assets Under Management (Rs Bn) Geographic Presence Business Line FY13(1) FY14(1) FY15(1) Business Line FY15(1) Consumer Lending 71.4 93.3 132.0 Urban 161 Of which Consumer Lending branches 161 SME Lending 84.0 128.5 171.4 Of which SME Lending branche
Slide 15: Provisioning Norms
Provisioning Norms Bajaj Finance provides a general provision of 0.40% on all standard assets (0.50% on Mortgages) against RBI’s requirement of 0.25% (from FY16 0.30%) Bajaj Finance Provisioning Consumer Lending SME Lending Commercial Lending RBI Norms provision coverage provision coverage provision
Slide 16: Borrowings Profile and ALM
Borrowings Profile and ALM Borrowings(1) – As at March 31, 2014 (Rs.Bn and %) Borrowings(1) – As at March 31, 2015 (Rs.Bn and %) Tier II Debt Fixed Deposits Tier II Debt Fixed Deposits 5.4 2.1 9.9 9.8 3% 1% 4% 4% Commercial Paper Commercial 25.8 Paper 13% 14.3 Banks Banks 5% 143.7 113.9 54% Non 58%
Slide 17: Business Strategy
Overview and Competitive Strengths Business Strategy Financial Information Annexures 16
Slide 18: Business Strategy
Business Strategy Focus on • Diversified & profitably growth through its distinct Consumer, SME, Commercial & Rural Verticals • Differentiated product offerings • Deep geographic distribution Leverage large and growing customer franchise Focus on technology and analytics to further improve productiv
Slide 19: Product Line Strategy
Product Line Strategy Profit Maximisers Scale Builders ROE enhancers Sales Finance (Consumer Durable, Digital & LSF) Salaried Home Loans Cross Sell Fee Products • Large customer acquisition engine using E2E point of sale • Large consumer asset pool • Financial Fitness Report connectivity on cloud pl
Slide 20: A Few Differentiators
A Few Differentiators Consumer SME Commercial Rural • Last mile connectivity • Flow based underwriting • Mid market focus • Branch based multi through cloud platform for SME businesses on • Specialised industry product distribution at over 10,500 stores cloud platform vertical • ‘Authorised Sales &
Slide 21: Financial Information
Overview and Competitive Strengths Business Strategy Financial Information Annexures 20
Slide 22: Strong Growth Trajectory
Strong Growth Trajectory AUM (Rs. Bn) Net Interest Income (NII)(1) (Rs. Bn) 324.1 31.7 32% 44% 25.0 240.6 19.0 175.2 14.3 131.1 10.4 75.7 FY-11 FY-12 FY-13 FY-14 FY-15 FY-11 FY-12 FY-13 FY-14 FY-15 Profit After Tax (Rs. Bn) and Basic EPS (Rs.) Book Value Per Share (Rs./Share) and Dividend Payout 38%
Slide 23: Robust Financial Performance
Robust Financial Performance Cost to Income Ratio(1) (%) Asset Quality – Gross NPA and Net NPA 46.9% 3.81% 46.0% 45.1% 1.51% 44.7% 1.16% 1.09% 1.18% 44.5% 0.80% 0.45% 0.19% 0.28% 0.12% FY-11 FY-12 FY-13 FY-14 FY-15 NPA Gross NPA Net NPA FY-11 FY-12 FY-13 FY-14 FY-15 Provision 79% 89% 83% 76% 71% Cov
Slide 24: Annexures
Overview and Competitive Strengths Business Strategy Financial Information Annexures 23
Slide 25: Statement of Profit and Loss
Statement of Profit and Loss Particulars (Rs. Million) FY11 FY12 FY13 FY14 FY15(1) Revenue from operations 13,923.3 21,630.2 30,937.2 40,314.2 53,818.0 Other income 138.0 88.9 176.5 419.1 364.8 Total Revenue 14,061.3 21,719.1 31,113.7 40,733.3 54,182.8 Expenses: Employee benefits expense 1,447.2 1,9
Slide 26: Balance Sheet
Balance Sheet Particulars (Rs. in Million) (1) As on As on As on As on As on Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Mar 31, 2015 EQUITY AND LIABILITIES Shareholders' funds a) Share Capital 366.3 413.2 497.8 497.5 500.0 b) Reserves and Surplus 13,214.8 19,709.3 33,172.6 39,411.1 47,497.1
Slide 27: Balance Sheet (cont'd)
Balance Sheet (cont’d) Particulars (Rs. in Million) As on As on As on As on (1) As on Mar 31, 2011 Mar 31, 2012 Mar 31, 2013 Mar 31, 2014 Mar 31, 2015 ASSETS Non-current assets a) Fixed Assets 1,026.0 1,387.9 1,762.1 2,198.7 2,491.8 b) Goodwill on consolidation 32.7 c) Non-current investments 56.1 5
Slide 28: Shareholding Pattern – March 31, 2015
Shareholding Pattern – March 31, 2015 Key Shareholders Others 19.21% • Bajaj Finserv 61.53% DIIs 5.63% • Maharashtra Scooters Ltd 3.78% Promoters • HDFC Trustee Company Ltd 1.26% FIIs 61.61% 13.55% • Acacia Partners 1.21% • Pinebridge Investments 1.10% 27
Slide 29: Industry Overview
Industry Overview Segment-wise demand for household appliances (MM Units) 15.3% 11.8% 24.5 9.5% 11.2% 16.8 12.0 9.7 4.7 7.3 5.9 3.5 Colour Colour Refrigerator Refrigerator Washing Washing Room Air Room Air Television Television Colour Television Refrigerator Machine Machine Washing Machine Condition