Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q2 FY22 Earnings Presentation
71 slides from Cholamandalam Financial's earnings presentation, Sep 30, 2021
Slide 1: Corporate Presentation – Q2-FY22
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q2-FY22 1
Slide 2: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Years of Consolidated 121 $4.2 Turnover $20.6 Years Existence B B (FY21) Listed 3 Sectors 29 Businesses 10 Companies 19 Geographical 90+ Manufacturing 51000+ Work force Countries Presence Locations Locations 2
Slide 3: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 30,778 43,715 59,193 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 23,324 7,455 16,876 26,839 46,254 NA 12,939 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(
Slide 4: Spirit of Murugappa
SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 4
Slide 5: Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.44% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 6: Shareholding pattern & Share price movement
Shareholding pattern & Share price movement Shareholding Pattern Share Price Movement as of September 30, 2021 40% 35% 11% 30% 15% 25% 49% 20% 15% 25% 10% 5% 0% Promoters Mutual Funds Public FII 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 Institutional Holders (More than 1%) CFHL Sensex Top Do
Slide 7: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q2 FY22 3584 652 16.14 2% 29% 27% Q2 FY21 3503 506 12.73 Rs.in Cr. Revenue Profit after tax EPS (Rs.) Networth H1 FY22 7175 1009 25.01 Sep-21 12367 %8 11% 9% 7% H1 FY21 6737 1095 28.12 Mar-21 11359 7
Slide 8: Performance Highlights - Consolidated Profit after tax
Performance Highlights - Consolidated Profit after tax Q1Q1 FY22 FY22 Q1 FY21 * 1,095 1,200 1100 * 1,009 69 238 1,000 900 800 700 * 652 37 * 505 600 500 946 866 85 300 618 400 422 100 200 -5 -9 -2 -2 -100 H1 FY22 H1 FY21 Q2 FY22 Q2 FY21 - CIFCL CMSGICL Others *CFHL Consol 8
Slide 9: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) H1 FY22 H1 FY21 CIFCL H1 FY22 H1 FY21 Income 30 5 Disbursements (Rs. in Cr) 12,341 10,046 As of As of Expenses 6 12 30-Sep-2021 30-Sep-2020 Profit Before Tax 24 (7) AUM (Rs. in Cr) 75,063 74,471 Tax Expense 4 - No.of Branches
Slide 10: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars September 30, March 31, 2021 2021 Owned Funds (A) 1,151.54 1,140.74 Adjusted Networth (B) 10,764.43 7,983.39 Risk Weighed Assets ( C) 1,280.27 1,290.11 Outside Liabilities (D) 158.18 162.19 Net assets (E) 1,279.79 1,279.35 Investment in equity
Slide 11: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 12: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) 0% 0% 5% 5% 6% 6% 5% 6% 5% * 12,341 1 17% 15% 693 20% 24% 21% * 10,046 571 2,640 * 8,706 1 1,464 494 * 6,457 2,051 90% 381 78% 80% 1,296 74% 71% 73% * 3,589 * 3,635 9,007 8,012 190 199 168 568 6,161 4,781 3,231 2,846 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1F
Slide 13: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 67,821 * 70,023 0% * 67,182 1 5% 7% * 63,501 4,765 5% 7% 4,402 3,630 3,302 21% 22% 22% 23% 15,971 15,015 14,288 13,371 49,264 49,285 74% 71% 73% 70% 46,828 48,403 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1F
Slide 14: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *10,421 933 *9,887 164 863 164 *8,987 *8,595 164 164 607 10,256 9,723 8,431 8,823 431 432 327 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Reserves and Surplus Equity Share Capital * Total Networth Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 14
Slide 15: Vehicle Finance
Vehicle Finance Primary Colours 15
Slide 16: Vehicle Finance: Q2FY22 Performance
Vehicle Finance: Q2FY22 Performance Disbursements • Disbursements grown by 29% in Q2FY22 as compared to Q2FY21. Assets under management • AUM was flattish compared to Q2FY21 Loss and • Loan losses declined to 0.4% in Q2FY22 as compared to 2.2% in provisions Q2FY21. Profit before tax • PBT grown by 6
Slide 17: Sector outlook – Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry had witnessed a de-growth of • More than 80% of our branches are present in the 11% in Q2 FY’22 & a growth of 10% as of H1 FY’22. rural areas, towns and semi urban areas which gives However, improv
Slide 18: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position ▪ The Heavy commercial vehicle segment had a growth • Our exposure in this segment is around 9% at a of 121% in Q2 FY’22 & 196% as of H1 FY’22 on account portfolio level. We are closely monitoring this of a very low base
Slide 19: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Two-wheeler industry had a de-growth of 12% in • The company intends to maintain its focus on two- Q2 FY’22 & a growth of 9% as of H1 FY’22. The wheeler funding with a clear eye for credit semiconductor issue had a
Slide 20: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 70,379 CAGR @ 10% CAGR @ 10% Chola @ 17% Chola @ 9% 1,21,197 61,918 1,15,846 3% 88,108 43,945 44,065 75,254 77,852 38,446 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'26 (E) Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2
Slide 21: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 78,011 Chola @ 179% CAGR @ 8% CAGR @ 15% Chola @27% 10,68,110 8,63,636 2% 42,366 7,26,938 7,43,268 38,471 33,166 6,22,518 19,127 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'26 (E) Q2 FY'19 Q2 FY'2
Slide 22: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 23: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Retai
Slide 24: Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala 6% 6% Kerala 6% 5% 6% Puducherry 6% 10% Gujarat 9% Puducherry Gujarat 5% Telangana 4% 0% Goa 0% Tel
Slide 25: Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22 Well diversified product segments Disbursements Portfolio (Rs.cr) (Rs.cr) Product wise Product wise 3 Wheeler HCV CE 1% 3 Wheeler 9% 6% HCV CE 2 Wheeler 5% 0.3% 6% 2 Wheeler 4% LCV 6% 19% LCV 21% MUV Used Vehicles 8% 27% Used Vehicles MUV 34% 7%
Slide 26: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 * 6,161 383 504 397 8% 6% 8% 6% 6% 164 279 2% 3% 5% 5% 413 7% * 4,781 16% 16% 944 18% 19% 1,158 Yield 20% Low 363 1,231 6% 5% 92 321 9% 8% 8% 567 481 10% 6% 777 366 4%
Slide 27: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 49,936 * 50,415 * 49,264 * 48,403 * 49,285 6% 6% 6% 6% 6% Low Yield 2,718 2,882 3,069 2,982 3,083 11% 10% 9% 9% 9% 5,453 5,041 4,882 4,313 4,560 21% 20% 21% 21% 21% 10,209 10,472 10,374 Mediu
Slide 28: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *49,264 *49,285 *44,206 1,103 9,007 1,910 1,295 8,012 *46,828 6,161 2,054 4,781 48,182 47,108 47,354 3,231 2,846 44,775 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 O
Slide 29: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax 6% (₹Cr) 849 798 3,797 3,571 591 440 1,905 1,885 1,892 359 1,686 258 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 29
Slide 30: Loan Against Property
Loan Against Property ary Colours 30
Slide 31: Loan Against Property – Q2FY22 Performance
Loan Against Property – Q2FY22 Performance Disbursements • Disbursements has grown by 65% in Q1FY22 as compared to Q2FY21. Asset under • The business has grown the assets by 11% in Q2FY22. management Loss and provisions • Loan losses declined to 0.04% in Q2FY22 as against 1.1% in Q2FY21. Profit befo
Slide 32: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL research expects a gradual improvement in • On back of improved economic activities, Business demand in the second half of fiscal 2022, amid has witnessed increased demand for LAP loans and expectation of faster economi
Slide 33: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 81% * 15,421 * 14,513 2,122 * 13,866 1,828 * 13,109 1,961 65% 2,351 2,427 1,736 1,171 13,592 12,552 1,052 10,683 11,516 386 Q1FY21 Q1FY22 Q2FY21 Q2FY22 119 On Book Assigned * Total AUM
Slide 34: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 195 875 784 152 130 -25% 432 442 399 86 386 65 65 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 34
Slide 35: Home Loans
Home Loans Primary Colours 35
Slide 36: Home Loans – Q2FY22 Performance
Home Loans – Q2FY22 Performance Disbursements • Disbursements grown by 30% in Q2FY22 as compared to Q2FY21. Asset under • The business has grown the assets by 31% in Q2FY22. management Loss and provisions • Loan losses declined to 0.8% in Q2FY22 as against 1% in Q2FY21. Profit before tax • PBT has g
Slide 37: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Affordable housing demand is expected to pick up given the • Chola does not have material under construction exposure to resumption of businesses and easing of lockdowns in most developer supplied houses markets. However
Slide 38: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *4,765 693 *4,402 579 602 *3,630 571 *3,302 668 494 688 381 4,186 5% 3,801 2,962 2,613 190 199 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 On Book Assigned * Total AUM 38
Slide 39: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 64% 93 317 235 38% 57 164 51 154 124 111 29 41 28 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 39
Slide 40: Funding Profile
Funding Profile <&} Chola aXe 49 Murugappa Financial Holdings
Slide 41: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.07 19.08 19.63 17.36 5.41 3.93 2.48 2.96 4.92 15.28 15.14 16.60 16.67 12.44 FY19 FY20 FY21 Q1FY22 Q2FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Loan type India ratings Care ICRA Crisil
Slide 42: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Rs.cr Borrowing mix by instrument type * 60,578 * 62,047 * 63,730 * 63,197 * 62,309 6% 7% 4% 5% 7% 3% 2% 3% 2% 2% 7% 6% 7% 6% 6% 6% 6% 6% 6% 7% 2% 3% 3% 2% 2% 11% 13% 14% 15% 14% 57% 57% 55% 58% 55% 7% 7% 7% 6% 7% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Tier II Capit
Slide 43: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Rs.cr Borrowing mix by investor type * 60,578 * 62,047 * 63,730 * 63,197 * 62,309 7% 6% 7% 6% 6% 2% 2% 2% 2% 4% 3% 3% 1% 2% 2% 6% 6% 6% 6% 7% 65% 66% 67% 63% 66% 1% 3% 1% 1% 4% 1% 4% 4% 4% 4% 8% 10% 9% 8% 11% 3% 3% 2% 3% 2% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Tru
Slide 44: ALM Statement as of 30th Sep 2021 (As per IND AS)
ALM Statement as of 30th Sep 2021 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2021 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 2,556.92 171.14 465.22 237.22 1,392.85 194.28 - 58.79 5,076.41 Advances 1,747.16 1,719.30 1,526.14 6,6
Slide 45: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited 45
Slide 46: Overview of the Company
#pledgé2protect Overview of the Compan: &} Chola Ee murugappa Financial Holdings 46 SAPP:
Slide 47: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) FY’20 IND FY’21 IND H1 FY21 H1 FY’22 Particulars – In Rs. Cr FY’20 FY’21 AS AS I GAAP IND AS I GAAP IND AS Gross Written Premium 4398 4824 4388 4705 1952 2058 2122 2289 Growth -0.7% NA -0.2% -2.5% -10.8% NA 9.3% 11.2% PBT 260 216 375 367 269 317 58 91 PAT 149 125 282 276 20
Slide 48: LOB Wise - Quarterly Growth Trends
LOB Wise - Quarterly Growth Trends LOB Wise - Monthly Growth Trends Particulars Months Fire Other Comml Motor Health PA Others Total In Q2, Chola MS Lines Q1 FY'22 4.1% 30.2% 3.1% 24.9% 42.4% 4.8% 11.1% ▪ Overall growth Jul'21 19.8% 26.0% 8.8% 49.0% -22.2% 16.2% 17.6% Aug'21 5.1% 10.0% 9.4% 23.2% 13
Slide 49: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth H1 FY’22 Solid GWP growth over the last 10 years 8th Largest Private Insurer High growth over the last 5 years Rs In Crs (CAGR 2015-2021 = 15.1%) by GWP 4103 4429 4398 4388 3133 2452 3992 1952 2122 3602 4379 4386 2313 2851 8 5.0% market 139
Slide 50: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 23.6% 6000 11.6% 15.0% 4824 4705 8.8% 16.2% 5000 4398 4400 10.0% 14.9% 6.0% 0.0% 13.0% 4000 -0.7% -2.5% 2122 5.0% 9.8% * ** 3000 1952 2058 2289 0.0% 7.8% 2000 -5.0 % 4.6% 3.5% 1000 -10.8% -10. 0% 0 -15. 0% FY'20 FY'20(IND FY
Slide 51: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2018-19 2019-20 2020-21 H1 2020-21 H1 2021-22 Number of Customers (Live No in Lacs 100 141 165 163 220 Customer) Number of policies issued No in Lacs 29 45 63 26 39 Market Presence(Branch + CIE + VO) No’s 559 645 593 622 630 PSB Branches* No’s 19000
Slide 52: Loss Ratio (%)
Loss Ratio (%) Line of Business FY2020 FY2021 Q2 2021 Q2 2022 H1 2021 H1 2022 Motor OD 60.6% 57.7% 52.8% 69.0% 45.6% 63.6% Motor TP 88.7% 79.0% 79.4% 61.6% 78.1% 61.3% Health,Travel & PA 40.9% 75.7% 63.3% 121.6% 46.3% 155.9% Fire 35.9% 30.8% 8 15.4% 39.1% 38.0% 49.5% Marine 54.5% 72.9% 90.8% 95.1% 6
Slide 53: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Category Mar-20 Mar-21 Sep-20 Sep-21 Mar-20 Mar-21 Sep-20 Sep-21 C Govt Sec 2623 4155 3350 4040 28.1% 37.7% 32.5% 34.8% S Govt Sec 3693 3508 3881 3320 39.6% 31.8% 37.6% 28.6% Housing sector 620 955 866 1102 6.6% 8.7% 8.4% 9.5% Infra sector 688 771 596 1269 7.4% 7.0
Slide 54: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system GI Market Share by GWP 78.2% 80.2% 81.1% 73.7% 70.2% 68.7% 0.0% 2.3% 10.1% 16.4% 14.5% 22.4% 22.1% 22.0% 5.0% 22.1% 4.7% 4.7% 4.6% 4.7% 25.4% 24.2% 4.3% 4.5% 3.9%
Slide 55: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment LOB Wise Mix% 6% 9% 12% 10% 8% 6% 6% 6% 5% 5% 9% 9% 8% 7% 7% 12% 6% 6% 6% 6% 11% 13% 15% 13% 11% 9% 14% 11% 68% 69% 68% 74% 71% 67% 69% 64% 8 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 H1 FY'21 H1 FY'22 Motor Commercial Health PA & Others Crop ▪ In FY
Slide 56: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commercial 220 12% 165 163 141 100 100 Retail 57 67 88% 8 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 H1 FY'21 H1 FY'22 Significant growth in retail oriented po
Slide 57: Multi-channel model ensures lesser concentration / diversified revenue stream
Multi-channel model ensures lesser concentration / & diversified revenue stream Channel wise Mix% 0.3% 0.4% 0.5% 0.5% 4.4% 5.2% 5.6% 5.6% 0.2% 0.2% 20.9% 25.0% 31.7% 31.7% 34.0% 35.9% 32.2% 34.5% 6.7% 8 4.9% 7.9% 5.7% 32.6% 27.5% 20.8% 20.8% 1.1% 1.2% 1.1% 1.1% FY'20 FY'21 H1 FY'21 H1 FY'22 Individu
Slide 58: Volumes Sustained Despite Stress in Financier Partners
Volumes Sustained Despite Stress in Financier Partners GWP Mix% 18.1% 15.8% 8.1% 11.5% 15.8% 14.9% 20.5% 22.8% 28.6% 30.5% 28.2% 31.4% 15.7% 14.9% 17.2% 19.2% 15.7% 21.8% 45.7% 46.5% 46.1% 8 38.8% 40.2% 31.9% FY'18 FY'19 FY'20 FY'21 H1 FY'21 H1 FY'22 Financers OEM Agency Others* ▪ Due to economic sl
Slide 59: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (CIE + Chola Finance + Coromandel) (IBL + Toyota) (PSU Banca, NBFC, OEM) 34.5% of 16.8% of 28.4% of H1 FY22 GWP H1 FY22 GWP H1 FY22 GWP GWP Rs In Crs CAGR = 38.8% GWP Rs In Crs GWP Rs In
Slide 60: Tech Enablers across the value chain
Tech Enablers across the value chain Service Channels Platforms (Products & Services) (Scale, User Experience) Improvement (Productivity, Ease of use) ▪ ~93% of monthly policy issuance is ▪ Introduced Phoenix as new ▪ RPA bots enabling 25+ processes in through system integrated channels microservice
Slide 61: Glimpse of new Tech & Digital Capabilities across the value chain (1/2)
Glimpse of new Tech & Digital Capabilities across the value chain (1/2) Distribution Build Sales Fulfilment Underwriting SME Commercial Tailor UW OCR End to End Digital Policy Issuance Health Rules Assets Health Pre Policy Onboarding of agents Health Policy Engine (UW & (Prospecting, lead, COP, Issu
Slide 62: Glimpse of new Tech & Digital Capabilities across the value chain (2/2)
Glimpse of new Tech & Digital Capabilities across the value chain (2/2) Claims Renewals Operations & Servicing Provider Portal RPA for Claims, AI based Health Claim Workflow NRLMS proctoring for new Assets AI based Motor Finance, Renewal Lead Claims OCR Claim Adjudication Management & Operations hir
Slide 63: Overview of the General Insurance Industry in India
Overview of the General Insurance Industry in India 8 63
Slide 64: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP (CY20) Non-Life Insurance Density (Premium per capital) (CY20) (US$) (US$) 5754 9.00 5.20 2.50 2.40 2.30 1619 1.90 1.80 1.00 1.00 949 951 0.50 214 124 120 105 21 19 UK Brazil Japan Russia India USA
Slide 65: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years (Rs In Cr) CAGR (Last 15 Years) = 16% Growth of 12.8% over H1 FY21 1,89,3021,98,724 1,70,036 1,50,572 1,28,213 96,394 1,08,705 58,357 69,086 77,541 84,686 38,400 47,355 1
Slide 66: Motor & Retail Health are the Largest GI Segment
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 37.8% share of the overall GWP Claims ratio is expected to stay flat for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims
Slide 67: Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR)
Industry Landscape – GWP Growth for Private GI Players (5 Yr CAGR) H1 FY'22 Growth over Market Last 5 years Motor Mix Heath + PA Insurers GWP (Rs in Crop Mix% Fire Mix% H1 FY'21 Share GWP CAGR % Mix% Crs) ICICI-Lombard 8613 7.0% 9.5% 11.6% 37.7% 22.9% 6.8% 18.7% Bajaj Allianz 7483 16.8% 8.2% 16.6% 2
Slide 68: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Working well Requiring Tweaks Yet to Take Off Mandatory Long term Third Party Insurance Crop Insurance Amendments to the Motor Vehicle Act 3 years for Cars, 5 years for 2W Claim ini
Slide 69: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–40907638 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 69
Slide 70: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 71: Thank You
Financial Holdings Thank You ake murugappa
Cholamandalam Financial Holdings — Q2 FY22 Earnings Presentation on 6ix