Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q3 FY2012 Earnings Presentation
31 slides from Religare Enterprises's earnings presentation, Feb 10, 2012
Slide 1: Religare Enterprises Limited Q3 FY12 Results
Religare Enterprises Limited Q3 FY12 Results February 10, 2012
Slide 2: Religare vision and strategic framework
Religare vision and strategic framework 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 pools Platform VISION “To be the leading emerging markets Increasing weight and growing int
Slide 3: Table of Contents
Table of Contents Q3 FY12 Highlights Appendix 1: Performance of Key Subsidiaries Appendix 2: Performance of JVs Appendix 3: Subsidiary and JV Balance Sheets 2
Slide 4: Q3FY12 characterized by continuing global uncertainty and tight domestic liquidity
Q3FY12 characterized by continuing global uncertainty and tight domestic liquidity BSE & NSE volumes volatile; continue to remain Share of options in overall market volumes appears below year-ago levels to be stabilising around 70% (` Tn) Turnover % of Turnover Cash Options Futures 95 96 91 10% 9% 9
Slide 5: Macro overhang had an adverse impact across the board
Macro overhang had an adverse impact across the board Mutual Fund AUM has been declining every quarter M&A and ECM deal volume remained subdued in FY12 (` Tn) Closing AUM (USD Bn) Completed Deal Volume -20% 22 6.7 6.4 18 5.9 15 15 12 Jun ’11 Sep ’11 Dec ’11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 New Bus
Slide 6: Long term funding arrangement for RCML in place
Long term funding arrangement for RCML in place • A fragile recovery from the global crisis and subsequent continuing uncertainty has meant that the environment has not been conducive to the complete realisation of RCML’s plans; RCML has reduced the revenue risk by focusing on the high-growth market
Slide 7: Key financial indicators – Q3 FY12
Key financial indicators – Q3 FY12 Reported revenue declined 4% sequentially as RCML has Underlying revenue performance robust been deconsolidated (` mn) REL Consolidated Revenue* (` mn) -4% 7,771 +6% 7,298 8,099 7,771 7,093 7,573 6,576 Q2FY12 Revenue Q3FY12 Reported Revenue Q3 FY11 Q4 FY11 Q1 FY12
Slide 8: Consolidated Income Statement – Q3FY12
Consolidated Income Statement – Q3FY12 QOQ Change YOY Change ` mn) (` Q3FY12 Q2FY12 (%) Q3FY11 (%) Income from Operations 7,565 8,050 -6% 6,267 21% Other Operating Income 172 40 327% 309 -44% Sale of Bullion* 2,566 3,198 -20% 593 332% Total Income 10,302 11,288 -9% 7,170 44% Cost of Bullion Sold 2,5
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet ` mn) (` As at Dec 31, 2011 As at Sep 30, 2011 As at Dec 31, 2010 Owners’ Funds 39,836 32,359 30,737 Share Capital* 5,932 6,247 1,764 Reserves and Surplus 33,904 26,112 28,974 Loan Funds 1,33,503 1,43,696 1,04,461 Secured Loans 96,742 94,716 46,900 Unsecured Loans 36,761 4
Slide 10: Strategy implementation update – 1/2
Strategy implementation update – 1/2 Continued focus on growth and delivery while managing headwinds… Uncertain global outlook and domestic macro concerns resulted in subdued sentiment coupled with tight liquidity conditions during Q3FY12; Religare continues to build resilience in the model • Lendin
Slide 11: Strategy implementation update – 2/2
Strategy implementation update – 2/2 …and consolidating international platform Sharpened focus on profitability and greater sustainability Restructuring under way to ensure capital efficiency and flexible cost structures Renewed focus on the build out of the Asia platform EM Capital Markets Platform
Slide 12: Table of Contents
Table of Contents Q3 FY12 Highlights Appendix 1: Performance of Key Subsidiaries Appendix 2: Performance of JVs Appendix 3: Subsidiary and JV Balance Sheets 11
Slide 13: Lending – Religare Finvest
Lending – Religare Finvest NIM stabilized as transmission of higher rates effective Overall loan book higher by 39% Y0Y NIM healthy as higher interest rates flow through Lending (` bn) SME Working Capital Loan Against Property NIM Opex/ ANR CE/CV Finance* Capital Market Lending 101.9 5.00% 5.02% 97.
Slide 14: Lending – Religare Finvest Financial Performance
Lending – Religare Finvest Financial Performance RFL Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q3FY12 Q2FY12 (%) Q3FY11 (%) Retail Broking Income from Operations 4,822 4,254 13% 3,076 57% Other Income 158 100 57% 233 -32% Total Income 4,980 4,354 14% 3,309 51% Operating Expenses
Slide 15: Retail Broking – Religare Securities
Retail Broking – Religare Securities Business going through a period of adjustment as the model is recalibrated Market-wide Cash Equities average daily turnover Brokerage yield declined in line with business mix Lending continues to decline (` bn) Cash Equities Futures Options (bps) Religare’s Broke
Slide 16: Retail Broking – Religare Commodities
Retail Broking – Religare Commodities Structural growth story in commodities trading continues to play out Market underpinned by a secular growth trend; QOQ Focus on improving productivity – larger client base Lending decline illusory as turnover had spiked in Q2FY12 serviced by a leaner team (` bn)
Slide 17: Retail Broking Financial Performance
Retail Broking Financial Performance RSL & RCL Combined Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q3FY12 Q2FY12 (%) Q3FY11 (%) Retail Broking Income from Operations 1,028 1,265 -19% 1,737 -41% Other Income 93 206 -55% 153 -39% Total Income 1,120 1,471 -24% 1,890 -41% Management
Slide 18: Asset Management – Religare AMC
Asset Management – Religare AMC Continued recognition for consistent fund performance Industry-wide average AUM at year-ago level after Business update Lending peaking in Q1FY12 (` bn) Avg. Industry AUM Religare Mutual Fund is the 14th largest out of 44 Mutual Funds in India as of 31-Dec-2011 Retail
Slide 19: Asset Management – Religare AMC Financial Performance
Asset Management – Religare AMC Financial Performance RAMC Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q3FY12 Q2FY12 (%) Q3FY11 (%) Retail Broking Income from Operations 138 139 -1% 84 64% Other Income 0 2 -80% 2 -78% Total Income 138 140 -2% 85 62% Operating Expenses 29 12 131% 2
Slide 20: Religare Capital Markets – Focus on Asia
Religare Capital Markets Focus on Asia Client empanelment Business update Lending No. of Institutional Empanelments* Sharpened focus on profitability and greater sustainability: • Business restructuring under way to ensure capital Retail Broking efficiency and flexible cost structures 512 • Renewed
Slide 21: Religare Global Asset Management Financial Performance
Religare Global Asset Management Financial Performance RGAM Abridged Income Statement * Business Update Lending QOQ Change Healthy acquisition (` mn) Q3FY12 Q2FY12 pipeline; focus is on (%) alternatives Retail Broking Income from Operations 913 863 6% Other Income (0) (0) nm Total Income 913 863 6%
Slide 22: Table of Contents
Table of Contents Q3 FY12 Highlights Appendix 1: Performance of Key Subsidiaries Appendix 2: Performance of JVs Appendix 3: Subsidiary and JV Balance Sheets 21
Slide 23: Religare Macquarie Wealth Management
Religare Macquarie Wealth Management Continued focus on productivity improvement Robust client base AUM steady No. of Clients (` bn) Total AUM CQGR CQGR +4% +4% 4,485 4,631 4,492 23.7 24.2 24.2 4,191 20.7 21.5 3,886 31-Dec-10 31-Mar-11 30-Jun-11 30-Sep-11 31-Dec-11 31-Dec-10 31-Mar-11 30-Jun-11 30-S
Slide 24: Religare Macquarie Wealth Management Financial Performance
Religare Macquarie Wealth Management Financial Performance RMWM Abridged Income Statement* QOQ Change YOY Change (` mn) Q3FY12 Q2FY12 (%) Q3FY11 (%) Income from Operations 58 68 -14% 81 -28% Other Income 4 2 118% 1 581% Total Income 62 70 -10% 81 -23% Operating Expenses 1 3 -61% 2 -39% Personnel Exp
Slide 25: AEGON Religare Life Insurance
AEGON Religare Life Insurance Robust growth in premium collected Steady increase in customer base Balanced distribution mix (000s) No. of Customers CQGR +14% Corporate Agents & Brokers Agency Distribution 30% 35% 175 190 151 161 114 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 4% 20% 000s of E-Sales 11%
Slide 26: AEGON Religare Life Insurance Financial Performance
AEGON Religare Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (` mn) Q3FY12 Q2FY12 (%) Q3FY11 (%) Income from Operations 974 1,022 -5% 832 17% Other Income (104) (285) nm 82 nm Total Income 870 736 18% 914 -5% Operating Expenses 509 460 11% 704 -28% Person
Slide 27: Table of Contents
Table of Contents Q3 FY12 Highlights Appendix 1: Performance of Key Subsidiaries Appendix 2: Performance of JVs Appendix 3: Subsidiary and JV Balance Sheets 26
Slide 28: Subsidiary and JV Balance Sheets (1/3)
Subsidiary and JV Balance Sheets (1/3) RFL Abridged Balance Sheet RSL & RCL Combined Abridged Balance Sheet (` mn) As at December 31, 2011 (` mn) As at December 31, 2011 Share Capital 2,052 Share Capital 395 Reserves and Surplus 17,526 Reserves and Surplus 3,774 Loan Funds 1,14,648 Loan Funds 9,016
Slide 29: Subsidiary and JV Balance Sheets (2/3)
Subsidiary and JV Balance Sheets (2/3) RAMC Abridged Balance Sheet RGAM Abridged Balance Sheet (` mn) As at December 31, 2011 (` mn) As at December 31, 2011 Share Capital 603 Share Capital 0 Reserves and Surplus 3,726 Reserves and Surplus -352 Loan Funds 11,117 Loan Funds - Minority Interest 191 Tot
Slide 30: Subsidiary and JV Balance Sheets (3/3)
Subsidiary and JV Balance Sheets (3/3) RMWM Abridged Balance Sheet* ARLI Abridged Balance Sheet* (` mn) As at December 31, 2011 (` mn) As at December 31, 2011 Share Capital 10,750 Share Capital 1,150 Reserves and Surplus - 9,014 Reserves and Surplus -961 Policy Holders’ Funds 5,774 Loan Funds - Fund
Slide 31: Thank You
Thank You 48 RELIGARE 30 Values that bind
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