Aditya Birla Capital Ltd. · NSE:ABCAPITAL
Aditya Birla Capital — Q2 FY2018-19 Earnings Presentation
47 slides from Aditya Birla Capital's earnings presentation, Nov 6, 2018
Slide 1: Cover letter to stock exchanges
ADITYA BIRLA CAPITAL PROTECTING INVESTING FINANCING ADVISING Ref: No. ABCL/SD/MUM/2018-19/NOV/03 6th November, 2018 BSE Limited The National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Plot. C/1, G-Block, Mumbai 400 001 Bandra-Kurla Complex, Bandra
Slide 2: Investor Presentation: Financial Results Q2 FY18-19
Investor Presentation FINANCIAL RESULTS Q2 FY18-19 MUMBAI PROTECTING INVESTING FINANCING ADVISING 6th November 2018 A leading Financial Services Conglomerate Aditya Birla Capital Limited
Slide 3: Table of contents
ADITYA BIRLA Table of contents „CAPITAL adityabirlacapital.com 1 | Overview Pg. 3 2 | Business-wise Performance Pg. 5 - 36 3 | Aggregate Financials Pg. 37 - 39 4 | Consolidated Financials & Other Annexures Pg. 40 - 45 NOTE 1: The financials of Aditya Birla Capital Ltd are consolidated financials pre
Slide 4: Delivering strong financial performance
ADITYA BIRLA Delivering strong financial performance 1- CAPITAL adityabirlacapital.com Figures in Rs Crore PROTECTING INVESTING FINANCING 39% 11% 30% 1,657 2,71,556 57,945 1,193 2,44,609 44,675 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Premium1 AAUM2 Lending Book3 1 | 77% Ind. APE4 growth in L
Slide 5: Aditya Birla Finance Limited
Aditya Birla Finance Limited PROTECTING INVESTING FINANCING ADVISING 4
Slide 6: Diversified portfolio with value accretive growth
Diversified portfolio with value accretive growth Figures in Rs Crore Balanced loan book growth with focus on ■ SME + Retail + UHNI ■ Large + Mid Corporate Others 38,898 48,061 higher margin segments Loan book 5% 2% shift towards SME + Retail + HNI mix grew by 44% y-o-y value 53% 49% accretive Impro
Slide 7: Multiple products catering to a range of customer needs
ADITYA BIRLA Multiple products catering to a range of customer needs „CAPITAL adityabirlacapital.com Figures in Rs Crore Retail (12% of Loan Book) SME (27% of Loan Book) 6% 3% 19% 10% ■ Broker Funding 12% 12% LAS 33% Supply Chain Finance 25% 25% 52% Unsecured and Digital ■ LAP 48% 38% LRD LAP .11 24
Slide 8: Strong focus on quality of book
Strong focus on quality of book Figures in Rs Crore Delivered consistent loan book growth High quality corporate book with CAGR 33% 48,061 43,242 Diversified loan book with Average median internal rating of “A”1 34,703 Ticket Size (ATS) of Rs 40 Lakhs 25,755 60%+ exposure to borrowers with credit 17
Slide 9: Stable margins across interest rate cycles
Stable margins across interest rate cycles Figures in Rs Crore Cost of Borrowing Optimised borrowing cost in a hardening interest rate environment 8.76% 8.43% 8.19% Cost of 7.85% 7.84% 7.78% 7.84% 7.96% 8.04% Borrowing across interest rate cycles Maintaining margins through interest rate cycles Q2 Q
Slide 10: Well matched ALM with diversified borrowing mix
ADITYA BIRLA Well matched ALM with diversified borrowing mix 1- CAPITAL adityabirlacapital.com Figures in Rs Crore ALM optimised for liquidity and costs1 Diversification across instruments and investors1 Cumulative Outflows Cumulative Inflows Borrowing Mix % Sourcing Mix % 100% 100% Bank 82% 77% Ter
Slide 11: Robust risk management approach
ADITYA BIRLA Robust risk management approach „CAPITAL adityabirlacapital.com Sourcing and underwriting Continuous monitoring to ensure asset quality IL&FS Update Dimension Approach Dimension Approach Total exposure of Rs 388 Crore Committee based approach Lifecycle (0.81%) of lending book Automation
Slide 12: Key Financials – Aditya Birla Finance Limited
ADITYA BIRLA Key Financials – Aditya Birla Finance Limited „CAPITAL adityabirlacapital.com Figures in Rs Crore ∆ LY% Quarter 2 Half Year ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) 38,898 48,061 Lending book 38,898 48,061 24% 11.35% 11.59% Average yield 1
Slide 13: Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Limited PROTECTING INVESTING FINANCING ADVISING 12
Slide 14: Value accretive growth
Value accretive growth Figures in Rs Crore Lending Book grew ~2x y-o-y 9,884 Affordable Loan book nearly at Rs 1,000 Crore in one year of operation (grew 1.4x y-o-y) Lending Book 5,777 Focus on building retail granularity I Q2 FY18 Q2 FY19 Average HL Ticket Size reduced to Rs 25 Lakhs 79% Improvemen
Slide 15: Diversification across products & geographies
ADITYA BIRLA Diversification across products & geographies „CAPITAL adityabirlacapital.com Segment Mix (%) Geographic Mix (%) 9% 12% 8% 38% 38% 30% 25% 18% 18% 58% 58% 29% 29% 15% 14% Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 ■ Home Loans LAP Construction Finance Affordable Housing ■ East North South West LAP
Slide 16: Growth along with focus on building retail granularity
ADITYA BIRLA Growth along with focus on building retail granularity „CAPITAL adityabirlacapital.com Margin accretive customer mix in home loan portfolio Focus on increasing reach and building retail granularity 58 32 Avg. Ticket Size (Rs. Lacs) 30,528 31% Salaried Home Loan Book: ■ Customers Rs 6,46
Slide 17: Maintaining margins through interest rate cycles
ADITYA BIRLA Maintaining margins through interest rate cycles 1- CAPITAL adityabirlacapital.com Optimised borrowing cost in a hardening 8.0% 7.9% interest rate environment 7.7% Cost of Borrowing Maintained margins across interest rate cycles Q2 FY18 Q1 FY19 Q2 FY19 Demonstrating ability to successfu
Slide 18: Prudent asset liability management
ADITYA BIRLA Prudent asset liability management 1- CAPITAL adityabirlacapital.com Optimised ALM for liquidity and cost1 Diversification in borrowing mix and investor profile1 Cumulative Outflows ■ Cumulative Inflows Borrowing Mix % Sourcing Mix % 100% 100% Term Loan 79% Bank 85% 83% 66% NCD 10% Mutu
Slide 19: Key Financials – Aditya Birla Housing Finance Limited
Key Financials – Aditya Birla Housing Finance Limited ∆ LY% Quarter 2 Figures in Rs Crore Half Year ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) , 5,777 9.884 Lending book 5,777 9,884 Ai ~2x 9.96% 10.01% Average yield 10.10% 9.86% 6.93% 7.20% Interest cost
Slide 20: Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited PROTECTING INVESTING FINANCING ADVISING 19
Slide 21: Profitable growth aided by improvement in asset mix
Profitable growth aided by improvement in asset mix 2 Year CAGR: Domestic: 23% | Domestic Equity: 49% Figures in Rs Crore Domestic Equity AUM grew by 33% y-o-y 2,71,556 Overall Equity AUM1 at ~Rs 1 Lakh Crore 2,44,609 7,390 10,018 1,83,033 7,151 1,63,228 Maintained equity market share in 1,56,058 Gr
Slide 22: Continued focus on retail expansion
ADITYA BIRLA Continued focus on retail expansion 1- CAPITAL adityabirlacapital.com Figures in Rs Crore Retail + HNI AUM1 at Rs 1,25,000+ Crore HNI ~2x 1,27,385 Increasing Retail Grew by 22% y-o-y 1,04,646 Retail 70,698 77,656 67,123 Penetration 47,159 Investor folios up 2x in 2 years (AUM) 23,539 37
Slide 23: Balanced Distribution Network
Balanced Distribution Network Overall AUM Sourcing Mix (%) Equity AUM Sourcing Mix (%) IFA Bank ■National Distributor ■Direct IFA Bank ■National Distributor ■ Direct 19% 19% 43% 45% 21% 22% 19% 17% 18% 15% 13% 11% 42% 44% 25% 27% H1 FY18 H1 FY19 H1 FY18 H1 FY19 Balanced Sourcing Mix IFA has Greater
Slide 24: Building blocks for retail expansion
ADITYA BIRLA Building blocks for retail expansion CAPITAL adityabirlacapital.com Continue to strengthen distribution network Sweat Digital Assets 249 Target to reach 275+ locations by FY19 • Digital Transactions as % of Total 1:1121 ) SIPNOW - Robo advisory Expand to emerging markets website Locatio
Slide 25: Key Financials – Aditya Birla Sun Life AMC Limited
Key Financials – Aditya Birla Sun Life AMC Limited ∆ LY% Quarter 2 Figures in Rs Crores Half Year ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) 2,24,650 68,592 2,54,207 90,979 Domestic AAUM1 Domestic Equity AAUM1 2,24,650 68,592 2,54,207 90,979 ** 13% 33% 9
Slide 26: Aditya Birla Sun Life Insurance Limited
Aditya Birla Sun Life Insurance Limited PROTECTING INVESTING FINANCING ADVISING 25
Slide 27: Fast growing franchise with significant value creation
ADITYA BIRLA Fast growing franchise with significant value creation „CAPITAL adityabirlacapital.com Figures in Rs Crore Individual APE1 grew by 60% y-o-y Quarter growth: 77% y-o-y 577 Significantly higher than industry growth Industry: 10% | Private2: 11% | Top 4 Private2: 6% 361 Individual 290 Grou
Slide 28: Focus on value accretive product mix
Focus on value accretive product mix Figures in Rs Crore Increasing Share of Ind. Protection in Product Mix Improvement in VNB Margins1 5% 8% 28.2% 36.4% Gross VNB grew 2x y-o-y Protection Gross VNB 23% 218 30% Non-Par Factors contributing to sharp 105 improvement in Net VNB: 34% Par 23% ▪ +ve impac
Slide 29: Balanced sourcing strategy with strong growth in partnerships
ADITYA BIRLA Balanced sourcing strategy with strong growth in partnerships „CAPITAL adityabirlacapital.com Figures in Rs Crore Partnership Channel Proprietary Channel Consistent increase in contribution of partnerships channel Channel-wise Individual FYP 313 71 Arr 265 290 H1 FY18 H1 FY19 H1 FY18 H1
Slide 30: Focus on quality of business
ADITYA BIRLA Focus on quality of business 1 CAPITAL adityabirlacapital.com Fund Performance across categories Persistency Ratios1 Internal Benchmark Fund +6% +7% +5% 5% 7% 8% 9% 10% 12% 16% 68% 70% 74% r•-1 r•-1 57% 62% 63% 56% 8% 8% 50% 51% ■ 3% 1 Yr 5 Yr 3% 2% 1 Yr 5 Yr 1 Yr 5 Yr 13th month 1 25th
Slide 31: Key Financials – Aditya Birla Sun Life Insurance Limited
ADITYA BIRLA Key Financials – Aditya Birla Sun Life Insurance Limited „CAPITAL adityabirlacapital.com ∆ LY% Quarter 2 Figures in Rs Crore Half Year ∆ LY% FY 17-18 FY 18-19 Key Performance Parameters FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) 78% 204 364 Individual First year Premium 372 601 61% 71% 252 4
Slide 32: Aditya Birla Health Insurance Limited
Aditya Birla Health Insurance Limited PROTECTING INVESTING FINANCING ADVISING 31
Slide 33: Strong growth led by retail
Strong growth led by retail Figures in Rs Crore 177 GWP grew ~2x with 1.2 Mn lives covered 69 Group Strong GWP 96 Retail Mix: 61% (PY: 16%) growth led by Retail 82 108 Retail Rapid distribution capacity build up 14 • Multi channel mix with Banca at 54% H1 FY18 H1 FY19 • Capacity significantly higher
Slide 34: Significantly scaled up distribution and provider network
Significantly scaled up distribution and provider network Q2 FY18 Q1 FY19 Q2 FY19 One of the largest third party distribution capacities Branches /Am /Am 8 Banca tie-ups within 18 months : 43 59 59 ▪ HDFC, DCB, RBL, Deutsche Bank, AU Bank, KVB and AB Payment Bank ▪ SVC signed up in Q2 FY19 Agents ti
Slide 35: Driving value through diversification
Driving value through diversification Increasing contribution of Retail GWP Geographical diversification (% contribution of Non-Metro) 34% 27% 61% 34% Retail % of 8% 6% Total GWP FY 17 FY 18 H1 FY19 FY 17 FY 18 H1 FY19 Improving margins by Increasing retail mix Retail Mix has grown 4x YoY Presence a
Slide 36: Other Financial Services businesses
ADITYA BIRLA CAPITAL adityabirlacapital.com Other Financial Services businesses
Slide 37: Other Financial Services Businesses
Other Financial Services Businesses Figures in Rs Crore Quarter 2 Half Year FY 17-18 FY 18-19 Key Performance Parameters FY 17-18 FY 18-19 (PY) (CY) For Other Financial Services Businesses1 (PY) (CY) 86 156 Aggregate Revenue 177 321 2 (1) Aggregate Earnings before tax 11 3 General • Premium placemen
Slide 38: Aggregate financials
ADITYA BIRLA CAPITAL adityabirlacapital.com Aggregate financials
Slide 39: Delivering strong financial performance
ADITYA BIRLA Delivering strong financial performance „CAPITAL adityabirlacapital.com Figures in Rs Crore Consolidated Revenue1 Consolidated PAT Reconciliation (IGAAP Vs. Ind AS) 32% Figures in Rs Crore Q2 FY19 3,961 3,008 PAT after MI (As per IGAAP) 227 EIR on assets and liabilities (15) Q2 FY18 Q2
Slide 40: Strong core operating profit for the quarter
ADITYA BIRLA Strong core operating profit for the quarter „CAPITAL adityabirlacapital.com Figures in Rs Crore Established Business PBT grew 23% y-o-y Consolidated PAT: Bridge from Q2 FY18 → Q2 FY19 ▪ Life Insurance profit ex fair value changes impacted mainly on account of investment in Book growth
Slide 41: Annexure: Consolidated Financials
ADITYA BIRLA CAPITAL adityabirlacapital.com Annexure Consolidated Financials
Slide 42: Consolidated Profit & Loss
Consolidated Profit & Loss Figures in Rs Crore Quarter 2 Half Year ∆ LY% FY 17-18 FY 18-19 Consolidated Profit & Loss FY 17-18 FY 18-19 (PY) 2,699 1,060 (CY) 3,590 1,266 Revenue EBITDA (PY) 5,019 1,998 (CY) 6,653 2,483 * 33% 730 969 Less: Interest Expenses for lending businesses 1,390 1,854 9 24 Les
Slide 43: Segmental Revenue
ADITYA BIRLA Segmental Revenue 1- CAPITAL adityabirlacapital.com Figures in Rs Crore ∆ LY% Quarter 2 Half Year ∆ LY% FY 17-18 FY 18-19 Businesses FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) 1,096 1,346 NBFC 2,123 2,618 312 371 Asset Management1 582 723 1,339 1,746 Life Insurance 2,365 3,079 26% 2,747 3,46
Slide 44: Segmental EBT
Segmental EBT Figures in Rs Crore Quarter 2 Half Year ∆ LY% FY 17-18 FY 18-19 Businesses FY 17-18 FY 18-19 (PY) (CY) (PY) (CY) 252 317 NBFC 505 652 127 155 Asset Management1 246 301 83 462 3 17 489 21 Life Insurance Established Businesses Housing 94 845 11 46 1,000 34 * 18% (49) (73) Health Insuranc
Slide 45: Company registered and corporate office details
ADITYA BIRLA CAPITAL adityabirlacapital.com ADITYA BIRLA CAPITAL PROTECTING INVESTING FINANCING ADVISING Aditya Birla Capital Limited CIN: L67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujarat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 8
Slide 46: Glossary
ADITYA BIRLA Glossary „CAPITAL adityabirlacapital.com ▪ CY – Current Year ▪ NII – Net Interest Income ▪ FY – Financial Year (April-March) ▪ NIM – Net Interest Margin ▪ PY – Corresponding period in Previous Year ▪ DPD – Days past due ▪ PQ – Previous Quarter ▪ CAB – Corporate Agents and Brokers ▪ Q1–
Slide 47: Disclaimer
ADITYA BIRLA Disclaimer „CAPITAL adityabirlacapital.com The information contained in this presentation is provided by Aditya Birla Capital Limited (“ABCL or the Company”), formerly known as Aditya Birla Financial Services Limited, to you solely for your reference. This document is being given solely
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