Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — FY2010 Earnings Presentation
38 slides from Bajaj Finserv's earnings presentation, May 14, 2010
Slide 1: Bajaj FinServ Limited
SAJAS Bajaj FinServ Limited
Slide 2: Corporate Structure
Corporate Structure Bajaj FinServ Bajaj Allianz Bajaj Allianz Protection Life Insurance General Insurance Lending Bajaj Auto Finance Wealth Wealth Management Management Status Existing Asset * Asset Management Management Under formation 2 *Application with SEBI
Slide 3: Existing Brand Structure
Existing Brand Structure Bajaj FinServ Limited Protection Lending Wealth Wealth Management Management Status Existing Asset * Asset Management Management Under formation 3 *Application with SEBI
Slide 4: Bajaj Finserv Identity
BAJAJ FINSERV IDENTITY
Slide 5: New Brand Structure
New Brand Structure Protection Lending Wealth Management Status Asset * Asset Management Management Under formation 5 *Application with SEBI
Slide 6: Bajaj Finserv Ltd
Bajaj Finserv Ltd ( One of India’s leading financial services company ) Protection Lending Investments ( 74% holding ) ( 44.6% holding ) ( 49% holding ) Bajaj Allianz Bajaj Allianz Asset Bajaj Auto General Life Management Finance Insurance Insurance Business * ( 100% holding ) Bajaj Financial Soluti
Slide 7: Highlights
Highlights Consolidated revenues : Rs. 23781 crores v/s Rs. 9868 crores during previous year Consolidated profit after tax : Rs. 559 crores v/s Rs. 71 crores during previous year Life insurance, shareholders profit after tax : ( its first ever profits ) Rs. 542 crores v/s loss of 71 crores during pr
Slide 8: Bajaj Finserv Ltd – a sum of the parts
Bajaj Finserv Ltd – a sum of Rs. in crores Standalone Profits Current Share of BFSL FY FY share- FY FY Name of the company holding 2009-10 2008-09 2009-10 2008-09 Bajaj Finserv 34 41 34 41 Bajaj Allianz General Insurance 121 95 74% 90 70 Bajaj Allianz Life Insurance 542 (71) 74% 401 (52) Bajaj Allia
Slide 9: Bajaj Finserv Ltd – Consolidated results
Bajaj Finserv Ltd – Consolidated results FY FY (Rs in crores) 2009-10 2008-09 Revenue: General Insurance 2153 2142 Life Insurance 21458 7590 Insurance (subtotal) 23611 9732 Investment & Others 127 95 Windmill 43 41 Total Revenue 23781 9868 Profit / (loss): Pre-tax General Insurance 180 150 Life Insu
Slide 10: Bajaj Allianz Life Insurance Co.
Bajaj Allianz Life Insurance Co. 10
Slide 11: Our New Brand Identity
@ BAJA4|Allianz @ Our New Brand Identity BAJAJ|Allianz@ is now © BAJA4| Allianz w), Z A ZZ SS
Slide 12: Industry Highlights
Industry Highlights The Market grew on New Business Premium basis by 25% as compared to -6% corresponding previous year. Growth picked up in the 2nd half of the year: H2 growth 34% & H1 growth 13%. LIC continued to be the market leader with consistent growth in single premium. Private sector grew by
Slide 13: BALIC's Focus and Initiatives
BALIC’s Focus and Initiatives Introduction of new product like – Max Gain, Wealth Gain, Shield Plus and reduce dependence on few products. Increased share of non-unit linked business in current year. Focus on Micro Insurance product with small premium size to cater to the demands of customer in the
Slide 14: BALIC Premium – Growth rate
BALIC Premium – Growth rate 40.0% New Business 29.3% 30.0% 20.0% 10.2% 10.0% 0.0% -0.9% -10.0% Renewal -20.0% 50.0% -30.0% 39.8% -27.4% 40.0% -30.3% -40.0% Apr – Jun 09 Jul - Sep 09 Oct - Dec 09 Jan – Mar 10 YTD Mar 10 30.0% 28.4% 20.0% 16.4% 13.6% 16.0% Gross Written Premium 10.0% 13.9% 14.0% 0.0%
Slide 15: BALIC New Business Share
BALIC New Business Share YTD Mar 10 YTD Mar 09 Traditional GroupUnit Traditional GroupUnit Group Linked Individual Group Linked Individual Traditional 3% 3% Traditional 5% 8% 3% 8% Unit Unit Linked Linked Individual Individual 79% 91% (In INR Mn) Particulars YTD Mar ’10 YTD March ‘09 Traditional Ind
Slide 16: BALIC Investment – Growth
BALIC Investment – Growth 400,000 334,222 350,000 300,000 250,000 In INR Mn 200,000 171,565 135,688 150,000 100,000 67,456 33,240 50,000 - 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 In INR Mn 2005-06 2006-07 2007-08 2008-09 2009-10 Investments 33,240 67,456 135,688 171,565 334,222 Growth 254.
Slide 17: Summary Results
Summary Results Rs. in millions FY 2009-10 FY 2008-09 Gross written premium 114,197 106,245 New business premium 44,511 44,914 Renewal premium 69,686 61,331 Profit / ( Loss ) after tax 4,274 407 Shareholder Profit/(Loss)* 5,423 (707) •Shareholders’ profit for the year is Rs 5,423mn - this comprises
Slide 18: Summary Results – New Business Achieved Profit (NBAP)
Summary Results – New Business Achieved Profit (NBAP) NBAP* Annualised Premium Period Rs. Bn Rs. Bn FY 2009/10 6.08 33.08 FY 2008/09 7.21 38.79 FY 2007/08 12.03 59.99 FY 2006/07 7.04 31.97 * NBAP is for Individual policies NBAP Comparison with other Life Companies might not be very relevant as actua
Slide 19: Challenges
Challenges Regulatory challenges Improving persistency ratio Improving agent productivity Control on acquisition and operating expenses Withdrawals after 3 years. 19
Slide 20: Bajaj Allianz General Insurance Co.
Bajaj Allianz General Insurance Co. 20
Slide 21: Our New Brand Identity
© BAJA45| Allianz @ Our New Brand Identity BAJA | Allianz @) is now
Slide 22: A. Industry - post de-tariffication
A. Industry - post de-tariffication Mounting underwriting losses – Underwriting losses of industry increased from Rs 26 Bn in 06-‘07 to Rs 53 Bn in 08-09 Combined ratios increased from 116% in 06-’07 to 123% in 08-’09 Industry Return on shareholders’ funds fell from 7.5% in 06-’07 to 1% in 08-’09 Lo
Slide 23: B. Industry highlights
B. Industry highlights Market growth picked up in Q4 at 23.6% Private sector – 27.2% Public sector -21.1% Top 4 private companies lost market share as they sought to improve combined ratios New smaller companies and public sector pushing for top line. Aggressive growth strategies carry cost of losin
Slide 24: C. Our Focus and Initiatives
C. Our Focus and Initiatives In this challenging environment, we have sought to focus on: Improving profitability through better selection Focus on improving renewal ratios where we have information advantage Sacrificing lines or relationships which have high loss ratios. Key areas which contributed
Slide 25: D. Performance - Highlights
D. Performance - Highlights Improved underwriting result with an underwriting profit Combined Ratio - YTD combined ratio at 99.6% (PY 101.2%) PBT - YTD up 20% , Y-O-Y. Maintained market position – after negative growth in Q1,Q2 and flat Q3, we grew 9.7% in Q4 Market share at 7.2% in FY 2010 Business
Slide 26: E. Summary Results FY 2010
E. Summary Results FY 2010 Change Rs Mn YTD CY YTD PY YOY Gross Written Premium* 25,155 26,491 -5.0% Net Earned Premium* 16,710 16,960 -1.5% Underwriting results excluding losses from Motor Pool 59 -196 -129.9% Provision for Motor Pool losses -561 -532 Interest/dividend 2,207 2,061 7.1% Capital gain
Slide 27: Balance sheet highlights
As on As on Rs. in million 31-Mar-10 31-Mar-09 Balance Investment in shares 28 NIL sheet Bonds, cash, mutual funds etc. 28,251 24,786 highlights Total Cash and investments 28,279 24,786 Share Capital + premium 2,768 2,768 Total shareholders' equity 7,928 6,725 Invested surplus increased by Rs 3,493
Slide 28: Market Share
Market Share YTD (Apr-Mar 10) YTD (Apr-Mar 09) • Top 4 private companies have lost 3.8% market share • Smaller private companies and PSUs have gained market share Based on GWP excluding specialised companies 28
Slide 29: G. Challenges and way forward
G. Challenges and way forward Competitive pressures likely to continue as smaller companies, new companies and public sector push for top line Growth environment improved but prudent selection and economic pricing will continue to drive our strategy. We will continue our focus on Maximizing net real
Slide 30: Bajaj Auto Finance
Bajaj Auto Finance 30
Slide 31: Our New Brand Identity
@ Bass . FINSERV|LENDING Our New Brand Identity BAJAJ FINANCE is now BAIJIAI FINSERV
Slide 32: Q4'10 Overview
Q4’10 Overview • Excellent quarter for the company. Q4 PAT growth of 67% to 25.18 Crores. • Full year PAT growth of 213% to 106.34 Crs. if adjusted for one time provisioning impact of 25.67 Crs. • Continued strong momentum in consumer businesses viz. Two-wheeler financing & Durables financing. Stron
Slide 33: Summary Annual Income Statement
Summary Annual Income Statement (Rs Crores , except EPS) FY 10 FY 09 %▲ Income from operations 809.7 509.5 59% Other operating income 106.5 89.9 18% Total Income 916.2 599.4 53% Interest & other finance charges 201.6 164.4 22% Net interest income 714.6 435.0 64% Operating expenses 263.6 174.1 51% Re
Slide 34: Summary Income Statement Q4'10
Summary Income Statement Q4’10 (Rs Crores , except EPS) Q4’ 10 Q4’09 %▲ Income from operations 224.5 158.0 42% Other operating income 32.4 17.8 82% Total Income 256.9 175.8 46% Interest & other finance charges 58.7 36.2 62% Net interest income 198.2 139.6 42% Operating expenses 61 52 17% Recovery co
Slide 35: Snapshot – Q4'10: Disbursements, Revenues, NII
Snapshot – Q4’10 Disbursements 103% QoQ 87% YoY Revenues 47% QoQ 53% YoY Disbursements (Rs Crores) Revenues (Rs Crores) Disbursements(Rs Crores) 2 per. Mov. Avg. (Disbursements (Rs Crores)) 2 per. Mov. Avg. (Revenues (Rs Crores)) 4585 916 Revenues(Rs Crores) 599 2451 1046 1210 1326 220 250 257 1003
Slide 36: Snapshot – Q4'10: Loss provision, Pre-tax profit, NPA
Snapshot – Q4’10 Loss provision 74% QoQ 60% YoY Pre-tax profit 54% QoQ 163% YoY Pre-tax profit( Rs Crores) Pre-tax profit (Rs Crores) Loss provision(Rs.Crores) Loss provision (Rs Crores) 2 per. Mov. Avg. (Pre-tax profit (Rs Crores)) 2 per. Mov. Avg. (Loss provision (Rs Crores)) 134 261 163 43 51 89
Slide 37: Snapshot – Q4'10: Capital Adequacy, Book Size, EPS
Snapshot – Q4’10 Capital adequacy increasing leverage Book Size increasing book size Capital Adequacy Ratio Capital Adequacy Ratio Book Size (Rs Crores) 2 per. Mov. Avg. (Capital Adequacy Ratio) 2 per. Mov. Avg. (Book Size (Rs Crores)) 38.4 38.4 4026 35.0 3450 3700 31.7 30.6 3114 26.0 26.0 2539 Q4'0
Slide 38: Thank you
Thank you No part of this presentation is to be circulated, quoted, or reproduced for any distribution without prior written approval from Bajaj FinServ Limited, Mumbai-Pune Road, Akurdi, Pune-411 035, India. Certain part of this presentation describing estimates, objectives and projections may be a