Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Aditya Birla Financial Services — Investor Presentation (June 2017)
39 slides from Grasim Industries's investor presentation, June 2017
Slide 1: A significant financial services conglomerate
A significant financial services conglomerate June 2017 Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 1
Slide 2: Table of Contents
Table of Contents 1. Aditya Birla Group Overview 3 2. Aditya Birla Financial Services Overview 5 3. Key Business Segments Snapshot 16 4. Way Forward 36 Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 2
Slide 3: Aditya Birla Group Overview
1 Aditya Birla Group Overview Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 3
Slide 4: Aditya Birla Group
Aditya Birla Group A leading business conglomerate and one of India’s most respected business groups FY17 Revenue & EBITDA FY17 Revenue Contribution & EBITDA Contributionby bySector Business India’s 1st truly global multinational Operating in 36 Metals & Mining Runs 48 schools & countries across Tel
Slide 5: Aditya Birla Financial Services Overview
2 Aditya Birla Financial Services Overview Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 5
Slide 6: Resulting structure post listing
Aditya Birla Financial Services Resulting structure post listing Promoter Public Group Investors 17.1% 57.3% 25.6% Aditya Birla Financial Services Limited 51% 51% 100% 100% 50.002% 100% Listed 93.7% 51% 75% Birla Sun Life Birla Sun Life Aditya Birla Aditya Birla Aditya Birla Aditya Birla Aditya Birl
Slide 7: Progressing in line with its vision
Aditya Birla Financial Services Progressing in line with its vision Among Fund Managers in India Among Private Diversified Asset Management Top 5 (excl. LIC) Top 5 NBFCs in India #4 Company in India Private Life Insurance Among General Insurance #5 Company in India Top 5 Brokers in India Renowned fo
Slide 8: Key Metrics
Aditya Birla Financial Services Key Metrics AUM* (₹ Bn) Lending Book** (₹ Bn) 388 2,463 1,843 277 1,648 1,223 177 1,074 117 80 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 *Includes AUM of Life & Health Insurance, Private Equity and quarterly average AUM of Asset Management businesses. **Includ
Slide 9: Financial Information
Aditya Birla Financial Services Financial Information Revenue (₹ Bn) PBT (₹ Bn) 106 11.5 93 9.9 79 8.5 66 7.6 64 7.3 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Note: The financial information above is extracted from the IGAAP financial statements of the individual subsidiaries and joint ventu
Slide 10: Leading financial services conglomerate
Aditya Birla Financial Services Leading financial services conglomerate FY17 Revenue & PBT Contribution by Business Revenue INR 105.7 Bn (US$1 1.6 Bn) PBT Employees INR 11.5 Bn 32% (US$1 177 Mn) 12000+ Life Insurance 29% AUM NBFC 9% 72% -14% Pan-India INR 2,463 Bn Asset Management Presence (US$1 37.
Slide 11: Our Distribution
Our Distribution Multichannel Presence 54K+ Independent Financial Advisors 1800+ Health Insurance Agents 1300+ Points of Presence 260+ National Distributors Online/Direct MULTICHANNEL APPROACH 3300+ DSAs in Lending 73K+ Life Insurance Agents 84 Banks Aditya Birla Financial Services Copyright © 2017
Slide 12: Our Product Suite
Our Product Suite Delivery through 12 lines of businesses Protecting Investing Financing Advising - Life Insurance - Mutual Funds - Home Loans - Aggregating - Health Insurance - Wealth Management - Personal Loans - Financial planning Our Solutions - Motor Insurance - Private Equity - SME Loans - Too
Slide 13: Risk Management at ABFS
Risk Management at ABFS 3 Tier Framework Investment Risk Management & ALM Level Level Level Policies Key Controls Oversight by 1 2 3 Committees Oversight by function Risk oversight Audit & governance Portfolio risk analysis committees Attribution risk analysis Credit Risk Management Operations R
Slide 14: Experienced Leadership
Experienced Leadership Management Structure Average experience of 23+ years in Average experience CEO, ABFS Financial Services of 10 years in ABG domain Ajay Srinivasan Business CEOs MD Life Insurance & CEO, Non-Infra, CEO, Asset CEO, General CEO, Health CEO, Infra & Broking CEO, Private Equity Dy.
Slide 15: Awards & Recognitions
Awards & Recognitions B.M Munjal Award for Learning & Development 2017 (Private sector services) HR & BUSINESS EXCELLENCE ‘IMC Ramakrishna Bajaj National Quality Award’ in the Service Category, 2016 “Best companies to work for” by Business Today and PeopleStrong, 2016 Top 50 companies to wor
Slide 16: Key Business Segments Snapshot
3 Key Business Segments Snapshot Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 16
Slide 17: Indian NBFC sector
Indian NBFC sector Highly underpenetrated market Rising share of non-banks in credit growth Credit as % of GDP (2015) (₹ Bn) 76,944 353% 42,315 21% 10 year CAGR 237% 16,345 193% 175% NBFCs 20% 163% 163% 107% 18% 76% 79% Banks 16% 16% 82% 84% Japan US China S. Africa UK Brazil India World Mar'06 Mar'
Slide 18: Aditya Birla Finance: Consistently delivering quality growth
Aditya Birla Finance Consistently delivering quality growth “Among Top 5” – Private A1+ rating for short term debt & Capital Infusion of ₹ 28.2 Bn in Gross NPA of 0.47% at 120 DPD Diversified NBFCs in India1 AA+ rating for long term debt past 5 years to support growth Lending Book (₹ Bn) 347 258 176
Slide 19: Diversification (1/2)
Diversification (1/2) Portfolio mix by products & customers Mid Corporate 15% Project Loan 1% Cons Fin 4% Structured Finance 5% TL / WCDL 16% TL / WCDL 5% Digital & Unsecured Retail 1% 6% LAP 4% LAS 1% Structured Finance 10% Broker 2% Loan Book Mix ₹ 347 Bn LAP 7% Large Corporate (Mar’17) 39% LRD 7%
Slide 20: Diversification (2/2)
Diversification (2/2) Accessing wider market with risk mitigation In the Past FY12 - 13 FY14 - 17 Planned Foray Margin Supply Loan Lease Com. Healthcare Financing IPO Personal Wealth Trade Chain against Rental Property Funding Loans Management Funding Finance Property Discount purchase Consumer Dura
Slide 21: Aditya Birla Finance: Key Financials, Value Drivers & Metrics
Aditya Birla Finance Key Financials, Value Drivers & Metrics Revenue PBT (₹ Mn) Net Worth (₹ Bn) Borrowing Mix (31 Mar’ 17) 34247 Sub-debt 5% 49.9 24633 NCDs 33% Term Loans 37.0 27% 17762 25.8 12012 8319 17.7 7151 6264 10.8 4109 1471 2513 Cash Credit / WCDL 9% FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15
Slide 22: Aditya Birla Housing Finance
Aditya Birla Housing Finance A growth business with low credit losses Highly underpenetrated market Sector with low credit losses Housing Loan as % of Total Loan Portfolio (2015) Gross & Net NPA of all Housing Finance Companies 37% 34% 35% 32% Gross NPA (%) 1.11 1.08 1.18 Net NPA (%) 18% 0.45 0.56 0
Slide 23: Aditya Birla Housing Finance: Key Financials, Value Drivers & Metrics
Aditya Birla Housing Finance Key Financials, Value Drivers & Metrics Commenced operations in Footprint expanded to 34 markets Net Worth at ₹ 3675 Mn as on Turned profitable within 7 quarters October ‘14 by March ‘17 March ‘17 of full operations Lending Book (₹ Mn) 41,363 Yields & NIM (%) 10.9% 10.7%
Slide 24: Indian Mutual Fund Industry
Indian Mutual Fund Industry Highly underpenetrated market Industry AUM has grown at 24% CAGR in 2 years 104% (₹ Bn) AUM to GDP Ratio (%) (Sep-2016) 18,282 13,522 56% 55% 11,875 54% 46% 36% 11% 10% US Brazil UK S. Africa Japan China India World Q4FY15 Q4FY16 Q4FY17 . Note : GDP at current prices - 20
Slide 25: Birla Sun Life Asset Management
Birla Sun Life Asset Management Consistent growth on the back of superior investment performance 4th Largest in India with AUM Alternate Assets AuM at ₹ 157 Bn Multi channel distribution including #4 in Equity AAUM of ₹ 2,107 Bn (Q4 FY 17) (Q4 FY 17) Banks, NDs, IFAs & Direct AUM (₹ Bn) Rising Marke
Slide 26: Birla Sun Life Asset Management: Solid Investment Performance
Birla Sun Life Asset Management Solid Investment Performance 1Equity AUM (Based on 1 year return in Quartile 1 & Quartile 2) 100% 100% 96% 97% 92% 92% 93% 93% 93% 75% 81% 50% Mar-15 Mar-16 Mar-17 1st & 2nd Quartile 1Total AUM (Based on 1 year return in Quartile 1 & Quartile 2) 100% 98% 100% 98% 98%
Slide 27: Birla Sun Life Asset Management: Key Financials
Birla Sun Life Asset Management Key Financials, Value Drivers & Metrics Revenue & PBT Channel Mix 9,685 % (₹ Mn) 7,652 15% 20% 5,960 5,018 4,052 3,371 24% 3,136 41% 1,403 1,816 1,074 FY13 FY14 FY15 FY16 FY17 Bank Direct IFA National Distributor Revenue PBT SIP book size grew 5.5x B15 Cities Monthly
Slide 28: Indian Life Insurance Industry
Indian Life Insurance Industry Highly underpenetrated market Private players driving growth & gaining share Life Insurance premium density per capita (USD) [2015] Individual APE (₹ Bn) 3,431 3,363 532 479 2,569 403 10 year CAGR 2,362 37% 54% 35% Private +7% LIC -1% 690 65% 63% 46% 302 168 43 UK Sing
Slide 29: Birla Sun Life Insurance: Key Highlights
Birla Sun Life Insurance Key Highlights Multi channel distribution including # 5 private life insurer with new #1 in group business 13th Month persistency : 71.5% Agency, Bancassurance, Brokers & business market share at 7.1% (~25% APE share FY17) Direct Marketing Total Premium (₹ Bn) Individual New
Slide 30: Birla Sun Life Insurance: Key Financials, Metrics & Value Drivers
Birla Sun Life Insurance Key Financials, Metrics & Value Drivers PBT (₹ Bn) 13th Month Persistency (%) 81.3% 5.4 71.5% 3.7 64.7% 62.2% 60.0% 2.9 1.4 1.2 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Embedded Value (₹ Bn) VNB Margin (%) 36.9 17.0 16.6 16.2 1 34.3 15.2 32.6 32.8 32.2 14.1 FY13 FY1
Slide 31: Indian Health Insurance Industry
Indian Health Insurance Industry Lowest expenditure on health among peers 85% of Health expenses funded Out-of-Pocket Out-of-Pocket Health Insurance Other Pvt Expenditure 17% 5% 14% 12% 22% 17% 10% 5% 10% 31% 9% 20% 9% 7% 83% 64% 6% 85% 5% 5% 72% 57% 58% 21% 13% UK USA South Africa Thailand China Si
Slide 32: Aditya Birla Health Insurance - An exciting Partnership
Aditya Birla Health Insurance - An exciting Partnership 51:49 JV of Aditya Birla Financial Services Business launched in Nov’16 Unique product opening doors of distributors and MMI Holdings. MMI Holdings - our J. V. Partner . Proposition Product Diversified financial services leader from South Afr
Slide 33: Aditya Birla Insurance Brokers & Aditya Birla Money
Aditya Birla Insurance Brokers & Aditya Birla Money Our premium placement rose y-o-y by Ranked amongst Top 5 General Using digital initiatives to build a Growth is back in Broking business 59% vs 32% for the industry, FY17 Insurance Brokers in India “Technology Driven Advisory Platform” 1ABIBL Marke
Slide 34: Aditya Birla My Universe
Aditya Birla My Universe International Finance Corporation Leading Online Money Automated PFM mobile app with One of the largest SIP distributors by is a strategic investor in My Management Platform online aggregation in India Numbers Universe Full service financial multi-product platform 3.76 Mn Tr
Slide 35: Growth Opportunities
Growth Opportunities Average Ticket Online DirectDirect SME Business Rise in NPAs provides supply with 80% INR 8 – 15 Lakhs Financing of market untapped Size E commerce Anchor Business Expected commercial launch in Q3 / Q4 Customer 2018 post RBI approval Low/ Middle Income Group Segment Pr
Slide 36: Way Forward
Birla Sun Life Asset Management Company Limited 4 Way Forward Aditya Birla Financial Services Copyright © 2017 Aditya Birla Financial Services 36
Slide 37: ABFS Roadmap
ABFS Roadmap Branding Digital • Leverage digital assets to • Unified brand drive customer acquisition and improve experience Customer Cross Sell • Analytics capability • Unified experience • Cross sell & upsell Distributor Employee • Building leadership pipeline • Common distributor program • Great
Slide 38: Contact Us
Birla Sun Life Asset Management Company Limited Contact Us Aditya Birla Financial Services Limited CIN: U67120GJ2007PLC058890 Regd. Office: Indian Rayon Compound, Veraval – 362 266, Gujrat Corporate Office: One Indiabulls Centre, Tower 1, Jupiter Mills Compound, 841, Senapati Bapat Marg, Elphinstone
Slide 39: Disclaimer
Disclaimer Birla Sun Life Asset Management Company Limited The information contained in this presentation is provided by Aditya Birla Financial Services Limited (“ABFSL or the Company”) to you solely for your reference. This document is being given solely for your information and for your use and ma
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