Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q3 FY2011 Earnings Presentation
40 slides from Religare Enterprises's earnings presentation, Feb 14, 2011
Slide 1: Religare Enterprises Limited Q3 and 9M FY11 Results
Religare Enterprises Limited Q3 and 9M FY11 Results February 14, 2011
Slide 2: Table of Contents
Table of Contents Section I : Q3 and 9M FY11 Highlights Section II : Performance of Key Subsidiaries Appendix 1: Performance of Other Subsidiaries and JVs Appendix 2: Entity Balance Sheets 1
Slide 3: Building a leading emerging market financial services group
Religare is building a leading emerging market financial services group, anchored in India and underpinned by three secular trends Robust Indian growth story providing solid breadth and depth to the Integrated Indian 1 financial services sector resulting in rapid growth of Financial Services profit
Slide 4: Strategy Implementation Update – 1/2
Strategy Implementation Update – 1/2 Consolidating our position in India… Completing our portfolio of offerings – Religare Health Insurance has received R1 approval from IRDA, filed R2; products to be launched in coming months; Corporation Bank and Union Bank of India on-board as shareholders, creat
Slide 5: Strategy Implementation Update – 2/2
Strategy Implementation Update – 2/2 …and putting international building blocks in place Completed the acquisition of Northgate Capital during the quarter Announced the acquisition of 55% equity in Landmark Partners, USA, a pioneer in secondary PE and real estate investments, with an AUM of ~USD 8.3
Slide 6: Temporary softness in Indian financial markets; structural story remains intact
Temporary softness in Indian financial markets; structural story remains intact Multiple pressure points in Significant upward shift in short term interest F&O market turnover grew well ahead of cash the financial markets rates has led to increase in cost of funding segment…. Upward shift in short t
Slide 7: Key Financial Indicators Q3 FY11
Key Financial Indicators Q3 FY 11 Lending now dominant source of revenue; expect asset Strong revenue trajectory continues – 74% growth YOY management contribution to kick in as RGAM platform scales up (` mn) REL Consolidated Revenue* 26% RSL+RCL 43% +74% 46% 7,182 6,280 RFL 39% RGAM 5,316 9% 4,748
Slide 8: Consolidated Income Statement
Consolidated Income Statement Q-o-Q Change Y-o-Y Change ` mn) (` 9M FY 11 9M FY10 Q3 FY 11 Q2 FY 11 (%) Q3 FY 10 (%) Income from Operations 15,393 9,721 5,813 5,523 5% 3,405 71% Other Operating Income 2,818 1,715 1,369 756 81% 729 88% Total Income 18,210 11,436 7,182 6,280 14% 4,134 74% Personnel Ex
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet ` mn) (` As at Dec 31, 2010 As at Mar 31, 2010 As at Dec 31, 2009 Owners’ Funds 30,738 26,126 26,204 Share Capital * 1,764 1,530 19,015 Reserves and Surplus 28,974 24,596 7,189 Loan Funds 104,395 55,720 44,675 Secured Loans 46,834 15,755 14,317 Unsecured Loans 57,561 39,96
Slide 10: Table of Contents
Table of Contents Section I : Q3 and 9M FY11 Highlights Section II : Performance of Key Subsidiaries Appendix 1: Performance of Other Subsidiaries and JVs Appendix 2: Entity Balance Sheets 9
Slide 11: Investment: Finvest – Lending growth
Religare Finvest Sustained growth in lending book Sustained and controlled growth in loan book – 24% CQGR and Revenue grew in tandem with book size growing 18% QoQ 13% QOQ growth Lending (` bn) Capital Market Lending Asset Finance Corporate Lending (` mn) Total Revenue Broking Equities 81.8 +18% +24
Slide 12: Finvest – Secured assets portfolio
Religare Finvest Focus on building secured assets portfolio Asset Finance Book grew at 38% CQGR over the last one year – Calibrated disbursements in light of shifting interest rate growth seen across products environment Lending (` bn) SME Working Capital Loan Against Property (` bn) Amt. Disbursed
Slide 13: Finvest – Portfolio quality and scale benefits
Religare Finvest Portfolio quality in control; scale benefits kicking in Asset Finance portfolio quality continues to remain under control Scale benefits visible as Asset Finance ‘Opex/ANR ratio’** and above benchmark continues to improve Lending (%) 90+ DPD* 30+ DPD* (%) 1.63% Opex/ANR 0.27% 0.27%
Slide 14: Finvest Financial Performance
Religare Finvest Financial Performance RFL Abridged Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 7,019 3,052 2,898 2,414 20% 1,208 140% Other Income 1,153 704 411 399 3% 396 4% Broking Comm. Total Incom
Slide 15: Securities – Unfavourable market conditions
Religare Securities Unfavourable market conditions causing softness Options market-wide average daily turnover up 32% QoQ* Brokerage yield impacted by change in Cash vs. F&O mix Lending (` bn) Cash Equitites Futures Options (bps) Religare’s Brokerage Yield 1,480 23% 4.77 4.70 Broking Equities 1,208
Slide 16: Securities – Cost optimization and customer activation
Religare Securities Focus on cost optimization, service delivery and customer activation Continue to grow distribution through franchisees Steady and sustained growth in client base Lending (Nos.) Own Branches Franchisees (000s) No. of Clients 1,852 1,891 1,926 1,686 1,747 Broking Equities 413 409 3
Slide 17: Securities Financial Performance
Religare Securities Financial Performance RSL Abridged Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 4,577 4,214 1,540 1,597 -4% 1,456 6% Other Income 459 387 130 132 -2% 124 5% Broking Comm. Total Incom
Slide 18: Commodities – Strategy fine tuned
Religare Commodities Strategy being fine tuned to address competitive pressures Steady growth in market turnover Steady increase in customer base Lending (` bn) (000s) Market’s avg. daily turnover No. of Clients Broking Equities 125 131 108 117 94 427 388 326 352 318 Broking Comm. Q3 FY10 Q4 FY10 Q1
Slide 19: Commodities Financial Performance
Religare Commodities Financial Performance RCL Abridged Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 581 446 199 199 0% 165 21% Other Income 66 69 21 25 -16% 25 -16% Total Income Broking Comm. 647 515 2
Slide 20: AMC – Focus on high fee products
Religare AMC Focus now on growing high fee products Industry-wide AUM decline d by `379 bn. in Q3FY11 Religare AUM held steady Lending (` bn) Avg.Market AUM Avg. Equity AUM Avg. Debt AUM 6% 8% 8% 8% 7% Broking Equities 94% 92% 92% 92% 93% 7,943 7,474 7,133 6,759 6,754 Broking Comm. Dec 09 Mar 10 Jun
Slide 21: AMC Financial Performance
Religare AMC Financial Performance RAMC Abridged Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 259 418 83 79 5% 145 -43% Other Income 12 12 2 3 -33% 6 -67% Broking Comm. Total Income 271 429 85 82 4% 151
Slide 22: Global Asset Management – Strategy implementation
Religare Global Asset Management Strategy implementation under way Northgate Capital Landmark Partners Lending Date of Announcement: February 23, 2010 Date of Announcement: December 3, 2010 Status: Closed Status: Transaction Ownership: 70% • Definitive documents have been signed Broking Equities Ove
Slide 23: Global Asset Management Financial Performance
Religare Global Asset Management Financial Performance RGAM Abridged Income Statement * Lending (` mn ) Q3FY11 Broking Equities Income from Operations 84 Other Income 0 Total Income Broking Comm. 84 Operating Expenses 0 Personnel Expenses 37 Administrative and Other Expenses 15 Asset Mgmt. – Total E
Slide 24: Capital Markets – Bolt-on acquisitions
Religare Capital Markets Accelerating rollout of business plan through bolt on acquisitions Global empanelments now exceed 520 with new acquisitions Business update Lending No. of Institutional Empanelments Completed acquisition of Aviate and BJM (UK) in Dec and Nov 2010 respectively. Obtained final
Slide 25: Platform Build-out Through Strategic Acquisitions
Significant Progress Made In Platform Build-out Through Strategic Acquisitions Central Joint Enterprises (Aviate Asia) Barnard Jacobs Mellet (US(1) & UK) Bartleet Mallory Stock Brokers Lending Acquired 100% stake in Central Joint Acquired 100% stake in Barnard Jacobs Acquisition of 50% stake in Bart
Slide 26: Capital Markets India Financial Performance
Religare Capital Markets - India Financial Performance RCML Abridged India Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 851 147 131 564 -77% 49 167% Other Income 45 167 17 17 0% 2 750% Broking Comm. Tot
Slide 27: Capital Markets Overseas Financial Performance
Religare Capital Markets – Overseas Financial Performance RCML Abridged Overseas Income Statement Lending Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Broking Equities Income from Operations 898 774 467 231 102% 65 618% Other Income 122 240 27 46 -41% 146 -82% Brokin
Slide 28: Table of Contents
Table of Contents Section I : Q3 and 9M FY11 Highlights Section II : Performance of Key Subsidiaries Appendix 1: Performance of Other Subsidiaries and JVs Appendix 2: Entity Balance Sheets 27
Slide 29: Insurance Broking Financial Performance
Religare Insurance Broking Financial Performance RIBL Abridged Income Statement Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Income from Operations 128 136 45 38 18% 48 -6% Other Income 2 0 1 0 nm 0 nm Total Income 130 137 46 39 18% 49 -6% Operating Expenses 5 6 1 2
Slide 30: Macquarie Wealth Management – Business stabilizing
Religare Macquarie Wealth Management Business stabilizing post structural changes Client acquisition continues, emphasis on improving wallet-share Consistent growth in AUM – CQGR of 31% over the last one year No. of Clients (` bn) Total AUM +15% +31% 3,834 3,886 20.7 3,161 15.6 2,520 11.1 2,184 8.0
Slide 31: Macquarie Wealth Management Financial Performance
Religare Macquarie Wealth Management Financial Performance RMWM Abridged Income Statement* Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Income from Operations 232 188 80 81 -1% 104 -22% Other Income 2 2 0 1 3% 0 34% Total Income 232 190 82 82 -1% 104 -22% Operating E
Slide 32: AEGON Religare Life Insurance
AEGON Religare Life Insurance Regulatory changes leading to significant market discontinuities Strong growth in customer base Building Steady increase a balanced in customer distribution basemix (000s) No. of Customers Corporate Agents & Brokers 15% +26% Agency Distribution 41% 114 95 21% Religare B
Slide 33: AEGON Religare Life Insurance Financial Performance
AEGON Religare Life Insurance Financial Performance ARLI Abridged Income Statement* Q-o-Q Y-o-Y (` mn) 9M FY11 9M FY10 Q3FY11 Q2FY11 Change (%) Q3FY10 Change (%) Income from Operations 1,993 809 832 742 11% 435 91% Other Income 393 150 82 243 -196% 31 165% Total Income 2,386 959 914 985 -8% 466 96%
Slide 34: Table of Contents
Table of Contents Section I : Q3 and 9M FY11 Highlights Section II : Performance of Key Subsidiaries Appendix 1: Performance of Other Subsidiaries and JVs Appendix 2: Entity Balance Sheets 33
Slide 35: Entity Balance Sheets (1/5)
Entity Balance Sheets (1/5) RFL Abridged Balance Sheet RSL Abridged Balance Sheet (` mn) As at Dec 31, 2010 (` mn) As at Dec 31, 2010 Share Capital 1,733 Share Capital 395 Reserves and Surplus 14,574 Reserves and Surplus 4,117 Loan Funds 89,963 Loan Funds 3,493 Total Liabilities 106,270 Total Liabil
Slide 36: Entity Balance Sheets (2/5)
Entity Balance Sheets (2/5) RCL Abridged Balance Sheet RIBL Abridged Balance Sheet (` mn) As at Dec 31, 2010 (` mn) As at Dec 31, 2010 Share Capital 20 Share Capital 480 Reserves and Surplus 217 Reserves and Surplus -486 Loan Funds 0 Loan Funds 158 Total Liabilities 237 Total Liabilities 152 Fixed A
Slide 37: Entity Balance Sheets (3/5)
Entity Balance Sheets (3/5) RCML India Abridged Balance Sheet RCML Overseas Abridged Balance Sheet (` mn) As at Dec 31, 2010 (` mn) As at Dec 31, 2010 Share Capital 1,388 Share Capital 6,527 Reserves and Surplus -3,001 Reserves and Surplus 5,537 Loan Funds 6,654 Loan Funds 11 Minority Interest 122 T
Slide 38: Entity Balance Sheets (4/5)
Entity Balance Sheets (4/5) RAMC Abridged Balance Sheet RGAM Abridged Balance Sheet (` mn) As at Dec 31, 2010 (` mn) As at Dec 31, 2010 Share Capital 703 Share Capital 0.01 Reserves and Surplus 1,052 Reserves and Surplus -398 Loan Funds 3,234 Loan Funds 0 Minority Interest 18 Total Liabilities 305 T
Slide 39: Entity Balance Sheets (5/5)
Entity Balance Sheets (5/5) RMWM Abridged Balance Sheet* ARLI Abridged Balance Sheet* (` mn) As at Dec 31, 2010 (` mn) As at Dec 31, 2010 Share Capital 1,050 Share Capital 8,200 Reserves and Surplus -760 Reserves and Surplus -6,267 Loan Funds 0 Policy Holders Fund 3,173 Total Liabilities 290 Total L
Slide 40: Thank You
Thank You : $6 RELIGARE Values that bind
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