Manappuram Finance Limited · NSE:MANAPPURAM
Manappuram Finance — Investor Presentation (January 2011)
25 slides from Manappuram Finance's investor presentation, January 2011
Slide 1: Corporate Presentation
STRICTLY CONFIDENTIAL Corporate Presentation January 2011
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Manappuram General Leasing and Finance Limited (“Company”) solely for your information and for your use and may not be taken away, distributed, reproduced, or redistributed or passed on, directly or indirectly, to any other person (whether within or
Slide 3: Table of Contents
Table of Contents 1 Gold Loans : A High Growth Industry 2 Manappuram Snapshot 3 What Makes Manappuram Unique? 4 Summary Financial Statements ‹#›
Slide 4: Gold Loans: A High Growth Industry
1 Gold Loans : A High Growth Industry
Slide 5: Increasing Market Size Of Gold Loans
Gold Loans : A High Growth Industry Increasing Market Size Of Gold Loans … India is one of the largest markets of gold accounting for nearly 10% of total world stock with 18,000 tonnes of gold Value of gold stock in India has grown at 22% CAGR from FY02 to FY10 Gold Price in-elasticity: Despit
Slide 6: NBFCs Riding the Growth Wave
Gold Loans : A High Growth Industry … NBFCs Riding the Growth Wave Growth Rate NBFCs are the Fastest Growing Lenders in the Share of Organized Market(%) (FY07-FY10) Organized Gold Loan Market Targeting Non-bankable customers 14.5% 12.1% 9.7% 25% High Comfort Level: Transparency & Trust 18.4% 23.6% 7
Slide 7: Key Drivers of Growth in Gold Loans
Gold Loans : A High Growth Industry Key Drivers of Growth in Gold Loans Policy Focus Changing Customer Behaviour Government views gold loans & Increasing Awareness as effective means to meet the potential micro-finance Debt averse psychology of demand in India Indian customers changing Promoti
Slide 8: Critical Success Factors For Gold Loan Companies
Gold Loans : A High Growth Industry Critical Success Factors For Gold Loan Companies Critical Success Factors for Gold Loan Companies Technology, Systems and Processes – Operating Risk Mitigation ‹#›
Slide 9: Manappuram Snapshot
| 2 ) Manappuram Snapshot Snapshot
Slide 10: Manappuram: India's Largest Listed Gold Loan Company
Manappuram: India’s Largest Listed Gold Loan Company Brief Snapshot of Manappuram Manappuram Group was founded by late Mr. V C Padmanabhan many decades ago - currently managed by his son Mr. V P Brief History Nandakumar, Executive Chairman of Manappuram General Finance & Leasing Ltd (“Manappuram”
Slide 11: What Makes Manappuram Unique?
3 What Makes Manappuram Unique?
Slide 12: What Makes Manappuram Unique?
What Makes Manappuram Unique? 1 2 Strong Platform: Strong Fastest Growing Player in Distribution Network / the High Growth Indian Strong Brand Recall and 8 Gold Loan Industry High Trust 3 Robust Business Model Strong Sponsorship & and Efficient Technology, Support From Systems & Processes for Stakeh
Slide 13: Fastest Growing Player in the High Growth Indian Gold Loan Industry
Fastest Growing Player in the High Growth Indian Gold 1 Loan Industry Growth Of Key Players In Gold Loan Industry 80 73 Gold Loans Portfolio of Key Players (Rs. bn) 70 60 52 50 39 40 33 33 31 26 22 24 30 17 17 19 14 12 12 15 11 16 14 20 5 5 6 11 9 6 4 9 10 0 Federal Bank Muthoot Fincorp Muthoot Fina
Slide 14: Strong Distribution Network / Strong Brand Recall and High Trust
Strong Platform: Strong Distribution Network / Strong 2 Brand Recall and High Trust Widespread Geographic Presence: Key to Growth … Branch Network 2,000 35.78 40 Punjab: 17 Delhi: 45 1,800 35 1,600 25.9 30 # Branches Haryana: 17 (Rs.mm) Uttar Pradesh: 14 1,400 1,200 18.2 19.5 25 Rajasthan: 44 1,000
Slide 15: Robust Business Model and Efficient Technology, Systems & Processes
Robust Business Model and Efficient Technology, 3 Systems & Processes for Risk Management In-house IT Infrastructure Asset Evaluation & Appraisal Risk Availability of accurate and real-time information aids in faster decision making and reduced turnaround Decades of experience provide a competit
Slide 16: Robust Risk Management / Internal Audit Practices
Robust Business Model and Efficient Technology, 3 Systems & Processes for Risk Management Robust Risk Management / Internal Audit Practices – Dedicated Departments for Offsite / Onsite Surveillance Appraisal Alert Verifications Routine Inspections Vigilance System of Online Alerts - based on poten
Slide 17: Flexible Product Offering Catering to All Needs of Customers
Flexible Product Offering Catering to All Needs of 4 Customers Gold Loans (99% of AUMs) Other Gold Related Products Other Services Flexible gold loan schemes with Gold Coins Loans several options Customized Gold Coins Historical portfolio of vehicle loans 24 and 22 Carat hallmarked gold and
Slide 18: Access to Multiple Sources of Low Cost Funds
5 Access to Multiple Sources of Low Cost Funds Diversified & Cost Effective Strong Credit Rating Eligibility for Priority Sector Lending Sources of Finance High credit ratings (credit Enables Manappuram to obtain low cost funds from Credit Lines from >30 Banks rating history of 15 years) banks
Slide 19: Robust Growth & Strong Financial Track-record
6 Robust Growth & Strong Financial Track-record Exponential Growth in Portfolio While Maintaining … And Increasing Income … Asset Quality… Net NPA 0.50% 0.14% NIM(2) 19.3% 16.3% AUMs (Rs.bn)(1) 65.2 Net Interest Income (Rs.mm) 5,443 6x 3,306 26.0 1,651 12.6 7.9 846 FY08 FY09 FY10 9M-FY2011 FY08 FY09
Slide 20: Experienced Management Team & Board of Directors
7 Experienced Management Team & Board of Directors Senior Management Team Chief Promoter of the Manappuram Group of Companies Holds a masters degree in science from Calicut University and is also a Certified Associate of Indian Institute of Bankers Has been associated with the banking industry
Slide 21: Experienced Management Team & Board of Directors
7 Experienced Management Team & Board of Directors Board of Directors BCom from the Madras University and is a qualified Fellow Chartered Accountant M. Anandan He has more than 30 years of work experience in the field of financial services Independent Director Currently the Chairman of Aptus V
Slide 22: Strong Sponsorship & Support From Blue Chip Stakeholders
Strong Sponsorship & Support From Blue Chip 8 Stakeholders Stakeholders Have Supported Manappuram In Its Growth Trajectory Dec 2010 Raised Rs. 10,000 mm through Qualified AUM: Rs. 65.2bn Institutional Placement Preferential Issue of Rs.1,000 mm to Promoters Net profit Rs.1,809 mm / Net Worth R
Slide 23: Summary Financial Statements
4 Summary Financial Statements
Slide 24: Summary Financial Statements: Profit & Loss Account
Summary Financial Statements Profit & Loss Account MAGFIL MAFIT MAGFIL + MAFIT Post-merger (INRmm) FY08 FY09 FY08 FY09 FY08 FY09 FY10 9M-FY11 Income from Services 780 1,605 263 511 1,043 2,116 4,700 7,506 Other Income 17 56 7 7 24 63 82 105 Total Income 797 1,661 270 518 1,067 2,179 4,782 7,611 Fina
Slide 25: Summary Financial Statements: Balance Sheet
Summary Financial Statements Balance Sheet (INR mm) MAGFIL MAFIT MAGFIL + MAFIT Post-merger FY08 FY09 FY08 FY09 FY08 FY09 FY10 9M-FY11 Networth 930 1,679 385 862 1,315 2,541 6,106 18,800 Loan funds 1,745 4,506 412 1,096 2,157 5,601 18,357 39,964 Deferred tax liability (net) 0 - 1 - 1 - - - Total Lia
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