RCap Q3FY14 Results Presentation Investors

8/12/2019 RCap Q3FY14 Results Presentation Investors

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Investo r Presentat ion

Febru ary 7, 2014

Results for the quarter ended December 31, 2013


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Slide 2

Overview - Strong Fundamentals


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Slide

1.0

2.7

1.81.7

Q3

FY13

Q4

FY13

Q2

FY14

Q3

FY14

118.2

120.1

123.7

125.6

481

489

504

511

Dec-12 Mar-13 Sep-13 Dec-13

17.216.9

18.718.9

Q3

FY13

Q4

FY13

Q2

FY14

Q3

FY14

3

Key Performance Highlights

Total Assets

Profit After Tax Earnings Per Share

Capital Adequacy

Total Income

Networth and Book value Per Share

(Rs. Billion) (Rs. Billion) (%)

(Rs. Billion) (Rs. Billion)

(Rs.)

20.4%

17.0% 17.1% 16.6%


(Rs.)

* Based on standalone financials

4.1

10.8

7.46.8

Q3

FY13

Q4

FY13

Q2

FY14

Q3

FY14

397.5

405.9

417.2

440.5



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Slide

Net debt - equity ratio: 1.83 CRISIL A1+

Highest credi t rat ing for sh or t

term bor rowing p rogram

ICRA A1+

Highest credi t rat ing for sh or t


CARE AAA

Highest credi t rat ing for long


4

Key Performance Highlights

Well capitalized to address future growth opportunities

1.65 1.70 1.80 1.83



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Slide 5

Reliance L ife Insu rance


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Slide 6

Qualitative Highlights - Reliance Life Insurance

As on Dec 31, 2013, Reliance Life was positioned

amongst Top 5 private sector insurers (as per Ind. WRP)

New Business Premium grew by 18% in Q3 FY14

Ach ieved high est market sh are gain in the industry

(from 4% in FY13 to 8% in 9m FY14)

Average tick et si ze was ov er Rs. 20,400 (+34%)

Solvency margin rose to 493%

Reduction in surrender profit; increase in business profit

Continued emphasis on Distribution initiatives (incl.proprietary channels)

Nationwide distribution network with over 900 offices

Focus on promoting a solution based selling approach


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9.3

12.7

9.1

10.8

9.7

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

6.0

8.1

4.0

5.8 5.7

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

402

2,902

565

1,356

272

Q3FY13

Q4FY13*

Q1FY14

Q2FY14*

Q3FY14

3.4

4.7

5.1 5.1

4.0

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

7

Renewal Premium

Business Mix (Individual)

Total Premium (net of reinsurance)

Profit Before Tax

New Business Premium

(Rs. Billion) (Rs. Billion) (Rs. Billion)

(Rs. Million)

Financial Performance - Reliance Life Insurance

(%)

25% 24% 20%14% 12%

75%76%

80% 86% 88%

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

U LI P T ra di ti on al

2.9

4.0

4.8 4.8

3.9

2.63.0

2.42.8 2.8

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

WRP Individual WRP

Weighted Received Premium

(Rs. Billion)

* Includes policyholders surplus transferred toshareholders account


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15,300

16,500 17,100

19,600 20,400

Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14

193.7

181.9180.1

175.3

180.7

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

No. of individual policies sold

Private Sector Market Share

Average Ticket Size (approx.)

Funds under Management

(Rs. Billion)

(in 000s)

(%)

Financial Performance - Reliance Life Insurance

8

200

219

156149 151

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

4.7%3.9%

10.4%

7.0%

5.9%

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14


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Reliance General Insu rance


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Qualitative Highlights - Reliance General Insurance

As on Dec 31, 2013, Reliance General Insurance was

ranked amongst the Top 5 private sector insurers

No. of policies sold rose to 0.9 million in Q3 (+26%)

Manual co ver-notes reduced from 15% to 9%

Direct sales contributed 21% of total premium

(14% in Q3 FY13)

Combined ratio at 125%

Provis ion due to 3rdparty mo tor cla ims reserves

(Rs. 198 m il l ion) and excep t ional pro visio nin g for

Motor Decline Risk pool (Rs. 135 million)

Investment book grew to Rs. 37 billion (+15%)

Intermediaries rose to over 14,400 intermediaries

Highest no . of new agents created in this year

among st pr ivate sector insurers


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156

170

102

162

106

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

112%

115%

113%

120%

125%

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

*

5.0 4.9

7.1

5.8 6.0

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

741

840

922

822

932

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

Motor

63%

Health

16%

Fire &

Engg.

9%

Marine

1%

Others

11%

11

Profit Before Tax Combined Ratio

Business mix

Gross Written Premium

(Rs. Billion) (Rs. Million)

Financial Performance - Reliance General Insurance

(%)

(Rs. Billion)

Investment Book No. of policies issued

(in 000s)

32.6 32.5

34.3

36.737.3


* Includ es one-time negative impact of Motor

Decline Risk pool


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Reliance Commercial Finance


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Qualitative Highlights - Reliance Commercial Finance

Amongst the leading lenders in the Indian

NBFC sector

Continued focus on asset-backed lending

and productive asset creation

Key focus areas: Mortgage, SME and

Commercial Vehicle finance

Securitised loans of Rs. 2 billion in Q3

NIM improved to 5.6% in Q3 FY14 driven by

higher yields and lower funding costs

Caters to over 71,000 customers

Geographical presence in 37 locations

across the country


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Segment

Home Loan

LAP

Commercial Vehicles

SME

Focus Area for growth

Self Employed / Affordable Housing

in Tier I & II cities

Self employed / SMEs

Small operators / FTBs /

Agriculturists

Cluster-based growth approach

Avg.

Yield

13%

16%

16%

15%

Share

in total

16%

31%

12%

30%

LTV

55%

42%

89%

65%

Segment details - Reliance Commercial Finance

0

50

100

150

200

0

10

20

30

40

Home Loan LAP CV SME

Average Ticket Size Average Tenure (months)

Rs.

inmillion

Tenure

inmonths

(As on Dec 2013)


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5.35.5

5.4 5.45.6

0.8

1.2

0.8 0.9 1.0

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Total Income Profit Before Tax

15

Disbursements

Yield and Net Interest Margin Cost-to-income ratio

Gross NPLs

159.5 163.8

158.7 161.0 164.1

137.6 136.5 135.6 132.0 136.9


AUM Total Loans

Total Income and Profit Before Tax

AUM and Total Loan Portfolio


(Rs. Billion) (%)

Financial Performance - Reliance Commercial Finance

(%)

(%)

23.1 24.5

16.5

20.1

24.2

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

13.4% 13.3%15.2%

16.5% 16.0%

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

14.2%

15.0% 15.4% 15.1% 15.4%

4.2%4.9% 5.0% 5.3%

5.6%

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

Yield NIM

1.9%1.7%

2.3% 2.3% 2.4%



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Reliance Cap ital Asset Management


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Amongst the Top 2 Mutual Funds in India

Continues to focus on improving realisations in

debt and equity segments

Leading AMC in garnering AUMs from beyond Top

15 cities category (18% share in total AUMs)

Retail debt forms 36% of overall debt AUMs

Retail Gold Fund maintained 25% market share in

the Gold Fund category

Wide distribution network - over 170 customer

touch points and 42,000 empanelled distributors

17

Qualitative Highlights - Reliance Mutual Fund


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583

1,151

771

667

843

Q3

FY13

Q4

FY13

Q1

FY14

Q2

FY14

Q3

FY14

2,276

1,949

2,116

1,869 1,879

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q2FY14

619.9 673.9 728.5 709.6

787.4

286.5 271.9

249.3 222.9237.4

906.4 945.8 977.7 932.5

1,024.9


Debt Equity

1,647.8

1,731.3

1,788.2

1,760.9

1,878.3

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

18

Average Mutual Fund AUMs

Profit Before TaxTotal Income

Average Assets under Management


(Rs. Million)

Financial Performance - RCAM

(Rs. Million)


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Brok ing and Dist r ibu t ion bus inesses


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Qualitative Highlights - Broking and Distribution

Broking business consists of :

Reliance Securities (2ndlargest broker in

the retail segment), and Quant Securities

that focuses on the wholesale clientele

One of the largest private sector partners for

Western Union Money Transfer in India

Pan India presence with over 6,600 outlets

Profitability remained muted due to decrease

in broking volumes in the equities as well as

the commodities segments


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356

415

300

352 357

-4

58

-8 -8 -28

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14


8.7

10.111.1

14.0

11.6


21

Average Daily Turnover

(Stock exchanges and Commodities)

Equity and Commodity

Broking Accounts

Broking

Total income & Profit Before Tax(Rs. Million)

Financial Performance - Broking & Distribution

(Rs. Billion)(in 000s)

Wealth Management AUM

(Rs. Billion)

631

788

538 504 524

100 111

4 3 -44

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14


614 627 674

760719


Money Transfer Transactions

(In 000s)

Distribution

Total Income & Profit Before Tax(Rs. Million)

709 715 719 724 727

39 40 40 41 42

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Equity Commodity

22.826.1 25.2

22.1

17.7

8.3 8.2 8.1

3.2 3.5

Q3FY13

Q4FY13

Q1FY14

Q2FY14

Q3FY14

Stock exchanges Commodities


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Other Bus inesses


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Other Businesses - Reliance Asset Reconstruction

Reliance ARC is in the business of acquisition, management and

resolution of distressed debt / assets

The business also focuses on bilateral deals with banks and works with

the management of the NPA company for facilitating time bound

solutions

As on December 31, 2013, the assets under management rose to Rs. 7

billion (Rs. 732 million as on September 30, 2013)

Companys own Investment in NPAs acquired rose from Rs. 463 millionas on Sept 30, 2013, to Rs. 898 million


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Manages a private equity fund, the Reliance Alternative Investments Fund -

Private Equity Scheme I - that makes late stage investments in mid-sized

Indian companies

The Fund is fully invested in 7 companies

Funds existing investments are closely monitored on an ongoing basis,

and continue to perform at or above expectations

The portfolio has been valued at 1.41 times cost as on March 31, 2013

The Fund will start focusing on exits from 2014 onwards

Other Businesses - Reliance Equity Advisors (REAL)


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Slide 25

Promoters54.1%Foreign

Investors

21.6%

DIs / Banks /Mutual funds

5.3%

Indian public19.0%

Shareholding Pattern

(As on December 31, 2013)

1.1 million retail shareholders

Constituent of CNX Nifty Junior and MSCI India

Traded in futures & options segment


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Thank you


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Slide 27

Annexure


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Slide

Consolidated Financials

(Rs. Million) Q3 FY14 Q3 FY13 Change(y-o-y)

Q2 FY14 Change(q-o-q)

FY 2013

Interest Income 9,551 8,345 14% 9,065 5% 32,067

Capital Gains / Dividend 350 729 (52)% 793 (56)% 11,588

Premium Earned 5,994 5,079 18% 5,832 3% 20,733

Mgmt. & Advisory Fee 1,702 2,063 (17)% 1,783 (5)% 6,416

Brokerage & Comm. 636 503 27% 573 11% 2,208

Other Income 658 440 50% 643 2% 2,174

Total Income 18,892 17,158 10% 18,690 1% 75,186

Interest & Fin. Charges 6,285 5,956 6% 6,268 - 23,430

Other Expenses 10,495 9,789 7% 10,783 (3)% 43,453

Total Expenses 16,780 15,745 7% 17,051 (2)% 66,883

Profit before tax 2,112 1,413 49% 1,639 29% 8,303

Net profit after tax 1,661 1,008 65% 1,808 (8)% 8,119

28

Prof i t & Loss statement

Fi i l R li Lif I


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Slide

Financials - Reliance Life Insurance


(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)

Q2 FY14Change(q-o-q)

FY 2013

First year premium 3,862 2,860 35% 4,820 (20%) 1,188

Single premium 150 531 (72)% 267 (44)% 188

Total New business

premium4,012 3,391 18% 5,087 (21)% 1,377

Renewal Premium 5,747 5,963 (4)% 5,782 (1)% 2,669

Total premium

(net of reinsurance)

9,713 9,302 4% 10,769 (10)% 4,015

Profit before tax 272 402 (32)% 1,356* (80)% 3,804*

Total funds under

management180,727 193,659 (7)% 175,250 3% 181,894

29

* Includes policyholders surplus transferred to shareholders account

Fi i l R li G l I


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Slide

Financials - Reliance General Insurance


30



FY 2013

Gross Written Premium 5,994 4,963 21% 5,832 3% 20,362

Profit / (loss) before tax 106 156 (32)% 162 (35)% (928)

Investment book 37,318 32,550 15% 36,705 2% 32,525

Combined ratio 125% 112% - 120% - 121%

No. of policies issued

(in million)

0.9 0.7 26% 0.8 13% 2.9

Fi i l R li C i l Fi


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Slide

Financials - Reliance Commercial Finance


31



FY 2013

Disbursements 24,171 23,124 5% 20,141 20% 87,446

Net Interest Income 1,796 1,446 24% 1,601 12% 5,901

Total Income 5,625 5,331 6% 5,364 5% 21,168

Interest expenses 3,274 3,553 (8)% 3,327 (2)% 13,778

Other expenses 900 716 26% 883 2% 3,115

Provisions 405 221 83% 245 65% 855

Profit before tax 1,046 841 24% 908 15% 3,420

Fi i l RCAM


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Slide

Financials - RCAM




FY 2013

Income 1,879 2,276 (17)% 1,869 1% 7,346

Expenses 1,036 1,693 (39)% 1,203 (14)% 4,450

Profit before tax 843 583 45% 667 26% 2,896

(Rs. Billion) Dec 31, 2013 Sept 30, 2013 Dec 31, 2012 Mar 31, 2013

Debt 764.0 684.0 589.5 644.7

Equity 237.4 222.9 286.5 271.9

Gold 23.5 25.7 30.4 29.3

Managed Accounts 14.5 14.4 15.9 14.7

Pension Funds 791.4 761.3 667.5 707.6

Offshore Funds 47.4 52.7 58.1 63.2

Total AAUM 1,878.3 1,760.9 1,647.8 1,731.3

32

Fi i l B ki d Di t ib ti


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Slide

Financials - Broking and Distribution

Prof i t & Loss - Broking

33



FY 2013

Total Income 524 631 (17)% 504 4% 2,581

Total expenses 568 532 7% 501 13% 2,206

Profit before tax (44) 100 - 3 - 375

Prof i t & Loss - Distr ibu t ion

(Rs. Million) Q3 FY14 Q3 FY13Change

(y-o-y)

Q2 FY14Change

(q-o-q)

FY 2013

Total Income 357 356 - 352 1% 1,200

Total expenses 385 360 7% 360 7% 1,127

Profit before tax (28) (4) - (8) - 73

Human Capital


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~17,500 employees

~80% in Customer Facing

roles

Young workforce

Post Graduates and

Professionals form over 25%

of the total workforce

~2,000 women employees

Human Capital

Young & vibrant workforce average age of 33 years

Qualification profile

MBAs /CAs12%

PostGraduates

14%

Graduatesand Others

74%

RCap Q3FY14 Results Presentation Investors

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