Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q2 FY2015 Earnings Presentation
38 slides from Religare Enterprises's earnings presentation, Nov 11, 2014
Slide 1: Religare Enterprises Limited Q2FY15 Results
Religare Enterprises Limited Q2FY15 Results November 11, 2014
Slide 2: Religare Enterprises Overview
Religare Enterprises Overview 1
Slide 3: REL Overview
REL Overview Religare is an Investment Holding Company with subsidiaries operating across Financial Services verticals Business Overview • Religare Enterprises Limited is an Investment Holding Company with portfolio companies operating across financial verticals in India and select verticals oversea
Slide 4: Portfolio Functions Overview
Portfolio Functions Overview REL’s primary objective is to ensure that its portfolio companies create equity value REL Structure and Functions • Religare Enterprises Limited (REL) is an Investment Holding Company managed by a set of professionals and supervised by an independent Board • The business
Slide 5: Growth in Portfolio
Growth in Portfolio REL has consistently grown its portfolio of businesses by investing in adjacencies organically and inorganically IFC investment in REL: ₹4.05 bn. PE Investments in RFL – Jacob Ballas: ₹2 bn. and Avigo: ₹1.5 bn. Invesco inducted as strategic partner in RAMC ESOP Scheme: Management
Slide 6: Consolidated Performance
Consolidated Performance $8 RELIGARE Values that bind
Slide 7: Key financial indicators – Q2 FY15
Key financial indicators – Q2 FY15 Revenue up 5% QOQ Lending continues to dominate revenue mix (₹ mn) RELConsolidated ConsolidatedRevenue Revenue REL 12% 13% RSL+ RCL +RCTL RFL 55% 55% 9,406 9,144 9,643 8,390 8,935 RGAM 17% 16% ARLI RHICL 4% 4% 4% 8% 8% Others 4% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 F
Slide 8: Consolidated Income Statement – Q2 FY15
Consolidated Income Statement – Q2 FY15 QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 9,643 9,144 5% 8,390 15% Personnel Expenses 1,828 1,806 1% 1,640 11% Operating and Admin Expenses 2,760 2,723 1% 2,228 24% Interest and Finance Charges 4,337 3,983 9% 3,965 9% Depreciation
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at September 30, 2014 As at June 30, 2014 Owners’ Funds 37,154 36,645 Minority Interest 2,083 2,091 Non-Current Liabilities 97,939 92,890 Current Liabilities 88,702 85,267 Total Liabilities 225,879 216,894 Non-Current Assets Fixed Assets 20,299 19,845 Non-Current
Slide 10: Performance of Portfolio Companies
Performance of Portfolio Companies 9
Slide 11: Lending
Lending Performance Review Net worth of Business ₹23.79 bn. Highlights Lending book of ₹112.7 bn. Religare Finvest 55% of REL’s consolidated Limited revenue (as of/q.e. 30-Sep-2014) One of India’s largest Strategic Non-Banking Improve ROE Priorities Financial Companies, Continuous focusing on the SM
Slide 12: Lending: Strong growth in SME lending book
Lending Strong growth in SME lending book Strong growth in SME Lending assets – SME LAP book size up Consistent improvement in NIM; Opex/ ANR on downward by ₹4.7 bn. QOQ trajectory as scale benefits kick in (₹ bn) SME Working Capital* SME Loan Against Property* Capital Market Lending NIM** Opex/ ANR
Slide 13: Lending: Financial Performance
Lending Financial Performance RFL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 5,268 4,986 6% 5,065 4% Operating and Administrative Expenses 739 726 2% 730 1% Personnel Expenses 266 272 -2% 272 -2% Interest and Finance Charges 3,206 3,126 3% 3,258
Slide 14: Retail Broking
Retail Broking Performance Review Market share of Business 1.3% in equities Highlights and 3.8% in Religare Securities commodities Limited 13% of REL’s Religare Commodities consolidated Limited revenue (q.e. 30-Sep-2014) Religare Comtrade Limited Strategic Increase A formidable retail Priorities Dis
Slide 15: Retail Broking: Enhancing capabilities
Retail Broking Enhancing capabilities to strengthen client proposition Equity market volumes largely driven by F&O; Cash Market share in Commodities improves QOQ; decline in segment volumes declined QOQ Equity due to higher Institutional participation (ADTO# - ₹ bn) Commodities - Futures Equities -
Slide 16: Retail Broking: Financial Performance
Retail Broking Financial Performance RSL, RCL & RCTL Combined Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 1,223 1,060 15% 911 34% Operating and Administrative Expenses 557 534 4% 425 31% Personnel Expenses 292 284 3% 267 9% Interest and Finance C
Slide 17: Wealth Management
Wealth Management Performance Review Business AUM of Highlights ₹33.3 bn. Customer base of Religare Wealth over 4,600 Management Limited (as of 30-Sep-2014) Strategic An open architecture Increase Yield on Priorities platform targeting AUM growing affluence Increase Annuity Income 16
Slide 18: Wealth Management: Advisory capabilities in focus
Wealth Management Advisory capabilities in focus as clients review allocations in light of market conditions and regulatory changes Client Base AUM (₹ bn) No. of Clients Total AUM 31.8 33.3 4,746 4,728 4,678 4,619 4,627 30.1 28.9 29.6 30-Sep-13 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 30-Sep-13 31-De
Slide 19: Wealth Management: Financial Performance
Wealth Management Financial Performance RWM Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 67 50 34% 52 29% Operating and Administrative Expenses 21 16 31% 28 -25% Personnel Expenses 53 49 8% 55 -4% Interest and Finance Charges - - - - - Depreciatio
Slide 20: Capital Markets
Capital Markets Performance Review Business India IE cash market Highlights share of 1.6% Empanelled with Religare Capital 492 clients globally Markets Limited (as of/q.e. 30-Sep-2014) Asia-focussed Strategic Institutional Equities Priorities Increase Market and Investment Share Banking platform Att
Slide 21: Capital Markets: Creating a sustainable platform
Capital Markets Creating a sustainable platform Client empanelment Business update No. of Institutional Empanelments* Intense focus on investments in growth areas and resource building across the India and international platforms 636 475 481 492 In Asia, equity capital markets revenue growth rem
Slide 22: Asset Management
Asset Management Performance Review Business Highlights Q2FY15 Average AUM of ₹177 Religare Invesco Asset bn. Management Co. Pvt. Ltd. Strategic Entering the next phase Priorities of growth Profitable AUM Growth 21
Slide 23: Asset Management: Entering the next phase of growth
Asset Management Entering the next phase of growth with Invesco’s induction as JV partner Industry-wide average AUM Religare Invesco mutual fund AUM grew 10% QOQ (₹ bn) Avg. Industry AUM (₹ bn) Religare - Average AUM 9,872 10,597 161 177 8,083 8,765 9,051 137 145 125 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY
Slide 24: Asset Management: Financial Performance
Asset Management Financial Performance RIAMC Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 183 190 -4% 230 -20% Operating and Administrative Expenses 60 94 -36% 124 -51% Personnel Expenses 114 115 -1% 94 21% Interest and Finance Charges - - - - - De
Slide 25: Global Asset Management
Global Asset Management Performance Review Business Highlights AUM of $16.95 bn. Religare Global Asset (as of 30-Sep-2014) Management Strategic Building a multi- AUM Growth in Priorities boutique Alternative existing affiliates Asset Manager Launch of organic affiliates 24
Slide 26: Global Asset Management: Financial Performance
Global Asset Management Financial Performance RGAM Inc. Abridged Consolidated Income Statement QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Total Income 1,512 1,552 -3% 1,388 9% Operating and Administrative Expenses 175 174 1% 194 -10% Personnel Expenses 693 699 -1% 656 6% Interest and
Slide 27: Health Insurance
Health Insurance Performance Review Business GWP of Highlights ₹521 mn. in Q2FY15 Religare Health 4,075 hospitals Insurance Co. Limited in provider network (as of 30-Sep-2014) Strategic Positioned to capture Priorities significant Group Grow GWP with synergies efficient use of Capital 26
Slide 28: Health Insurance: Rapidly achieving scale
Health Insurance Rapidly achieving scale Gross Written Premium Business Update (₹ mn) GWP Gross Written Premium (GWP) of ₹521 mn. in Q2FY15 Total Paid-up Share Capital at ₹2.75 bn.; solvency 533 521 position at 155% 422 320 268 Pan-India coverage through 44 offices and 1,200+ Q2FY14 Q3FY14 Q4F
Slide 29: Health Insurance: Financial Performance
Health Insurance Financial Performance RHICL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Gross Written Premium 521 533 -2% 268 94% Net Written Premium 381 487 -22% 194 97% Net Earned Premium 307 295 4% 207 49% Net Claims Incurred 184 196 -6% 190 3% Net Commiss
Slide 30: Life Insurance
Life Insurance Performance Review Business Approx. 346,000 Highlights lives covered AEGON Religare Life ₹5.8 bn. capital invested by REL Insurance Co. Limited (as of 30-Sep-2014) Strategic Pioneer in Online Priorities Efficient use of Distribution Capital Achieve Breakeven 29
Slide 31: Life Insurance: Acknowledged leader in use of technology
Life Insurance Acknowledged leader in use of technology Steadily growing customer base Premium Income split (000s) No. of Customers (₹ mn.) Single Renewal First year premium 1,922 6 1,208 328 336 346 1,013 1,011 1,284 3 290 301 12 3 694 812 666 675 1 487 632 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 3
Slide 32: Life Insurance: Financial Performance
Life Insurance Financial Performance ARLI Abridged Income Statement* YOY QOQ Change Change (₹ mn) Q2FY15 Q1FY15 (%) Q2FY14 (%) Premiums Earned (Net) 1,144 632 81% 962 19% Investment Income and Other Income 547 1,111 -51% (141) nm Total Income 1,691 1,743 -3% 821 106% Commission 70 28 150% 30 126% Op
Slide 33: Appendix: Portfolio Companies' Balance Sheets
Appendix: Portfolio Companies’ Balance Sheets 32
Slide 34: Portfolio Companies' Balance Sheets (1/4)
Portfolio Companies’ Balance Sheets (1/4) RFL Abridged Balance Sheet RSL, RCL & RCTL Combined Abridged Balance Sheet (₹ mn) As at September 30, 2014 (₹ mn) As at September 30, 2014 Owners’ Funds 23,786 Owners’ Funds 5,072 Share Capital 2,250 Share Capital 345 Reserves and Surplus 21,536 Reserves and
Slide 35: Portfolio Companies' Balance Sheets (2/4)
Portfolio Companies’ Balance Sheets (2/4) RWM Abridged Balance Sheet RIAMC Abridged Balance Sheet* (₹ mn) As at September 30, 2014 (₹ mn) As at September 30, 2014 Owners’ Funds 75 Owners’ Funds 599 Share Capital 1,270 Share Capital 765 Reserves and Surplus (1,195) Reserves and Surplus (166) Non - Cu
Slide 36: Portfolio Companies' Balance Sheets (3/4)
Portfolio Companies’ Balance Sheets (3/4) RGAM Inc. Abridged Consolidated Balance Sheet RHICL Abridged Balance Sheet* (₹ mn) As at September 30, 2014 (₹ mn) As at September 30, 2014 Owners’ Funds 11,496 Owners’ Funds 1,014 Share Capital 0 Share Capital 2,750 Reserves and Surplus 11,496 Reserves and
Slide 37: Portfolio Companies' Balance Sheets (4/4)
Portfolio Companies’ Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at September 30, 2014 Owners’ Funds 1,550 Share Capital 13,083 Reserves and Surplus (11,533) Policyholders' Funds (including funds for 13,894 discontinued policies and future appropriation) Current Liabilities 840 Total
Slide 38: Religare Enterprises Limited
Religare Enterprises Limited D3, P3B, District Centre, Saket, New Delhi 110017 Email: [email protected] This presentation may include forward-looking statements These forward-looking statements are statements regarding Religare's intentions, estimates, forecasts, projections, beliefs or
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