Investor Presentation FINANCIAL RESULTS – FY20 MUMBAI th Ju 5 th June 2020 2020 A Leading Financial Services Conglomerate Aditya Birla Capital Limited
Table of contents 1 | Overview Pg. 3 - 8 2 | Business-wise Performance Pg. 9 - 55 3 | Consolidated Financials & Other Annexures Pg. 56 - 59 NOTE 1: The financials of Aditya Birla Capital Ltd are consolidated financials prepared based on Ind AS unless otherwise specified NOTE 2: The financial figures in this presentation have been rounded off to the nearest Rs 1 Crore Aditya Birla Capital Limited 2
Our response to the Lockdown Employee Heath and Safety ▪ Identified Flu Prevention Managers across all 24x7 Doctor-on-call Complete test for ▪ One of the early companies to go 100% WFH a week Business Continuity regions to monitor and report on employee health + health partner 100% WFH before lockdown services onboarded conducted a week ▪ Branch operating plan with stringent protocols ▪ All systems were tested for remote working which before lockdown ▪ Regular employee communication and engagement allowed us to operate fully during lockdown 5+ Lac hours to ensure connect covering 64% (PY: ▪ Contact centers were also tested to WFH 85% branches ▪ Big push to employee learning and development 16%) employees of operational as on during lockdown digital learning date Customer and distributor ▪ Hyper-personalized digital engagement with Rs 7.4 cr LI FYP PASA ▪ Enhanced bandwidth and ensured access of all users 94% of services Technology Readiness existing customers and warm prospect pool offers in May’20 securely to key systems with controls in place offered digitally engagement ▪ Pre approved digital products and simplified (61% last year) ▪ Increased coverage of self serve digital channels telesales journeys for selling to existing customers 100% advisors for (Web portals, Apps, Chatbot & WhatsApp) Life Insurance and ▪ Driving ‘service -to- sale’ at service touchpoints using WhatsApp channel ▪ AI-Voice Bot Calling implemented the Next Best Product model Mutual Fund now has >3 Million ▪ Smooth running of 200 + Robots in mid & back business onboarded customers and 180+ ▪ Continuous reach out to distributors and customers office processes. No processing backlogs on digital solutions services LIVE. throughout this period Aditya Birla Capital Limited 3
FY 20: Key highlights Consistent profit delivery from diversification; AMC PAT grew 10% y-o-y, maintaining equity mix at ✓ ✓ Consolidated ABCL FY20 PAT grew by 6% y-o-y; 36% with PBT to AAUM 1 at 26 bps PAT (ex-CoVID provision) grew by 15% y-o-y NBFC NIM 2 expanded y-o-y by 38 bps to 5.29%; led ✓ ✓ Total active customer base grown to ~20 Million by improving Retail and SME Mix, now at 50%; PPOP grew 16% y-o-y Raised Rs 2,100 Crore of equity capital in Sep’19 HFC PAT (ex-CoVID provision) grew by 55% y-o-y, ✓ ✓ through preferential allotment to Promoter/ RoE 3 at 9.8% (PY: 7.0%); Retail Mix at 95% Promoter group and marquee investors Lending businesses raised LT funds of Rs 15,000+ ✓ ✓ Life Insurance EV at Rs 5,188 Crore; RoEV at 13.2% Crore in FY20; AAA Rating reaffirmed Health Insurance GWP grew 76% y-o-y to ~ Rs 872 ✓ ARC turns profitable in first year of operation with ✓ Crore; Retail mix at 72%; Fastest growing HI Company AUM at ~Rs 2,800 Crore Aditya Birla Capital Limited 4 3 Based on monthly compounding of annualised earnings 1 Includes domestic AAUM of Asset Management Business 2 Including fee income
FY20: Key Financials Figures in Rs Crore Full Year ∆ LY% C O N S O L I D A T E D Businesses FY 19 FY 20 9% 6% NBFC 869 821 18,028 920 Asset Management 448 494 10% 871 16,570 Life Insurance 107 103 Housing 74 103 38% General Insurance Broking 20 31 56% Stock & Securities Broking 10 12 20% FY19 FY20 FY19 FY20 Profitable Businesses PAT 1,528 1,564 Revenue 1 PAT Health Insurance (257) (246) Less: Interest Cost (89) (77) Continue to deliver consistent PAT growth Less: Brand & Marketing (35) (40) FY20 Consolidated PAT (ex COVID Provision) grew y-o-y by 15% Less: Others 2 / Eliminations (119) (95) Identified savings of ~Rs 110 Crore; targeting further Less: Minority Interest (157) (187) Rs 150 – 175 Crore of cost savings in FY21 Consolidated PAT 3 871 920 6% 1 Consolidated segment revenue ; for Ind AS statutory reporting purpose Asset management and wellness business are not consolidated and included under equity accounting 5 2 Includes ABCL standalone (ex-interest and brand expenses), Online Personal Finance, Private Equity, ARC, ABMM and other businesses 3 Aditya Birla Sun Life AMC Ltd and Aditya Birla Wellness Pvt Ltd consolidated based on equity accounting under Ind AS, however considered as a part of segmental performance to show holistic financial performance 4 Aditya Birla MyUniverse demerged transaction business into ABFL’s wealth business w.e.f. 1st January 2020; Prior period accounts not restated.
Progress on digitalization: Customer and Advisor Onboarding Digital Assets Deployment Outcomes Customer direct digital % Customers onboarded digitally Onboarding/ Purchase Key Business Status 100% 98% Digitization of customer 95% Q4 FY19 onboarding journeys leveraging Mutual Fund 77% 76% biometric, OCR & KYC Q4 FY20 56% technologies Life Insurance Apr'20 Health Insurance Mutual Fund Advisor assisted digital Health Insurance onboarding Distributor assisted paperless NBFC purchase journeys for % Advisors onboarded on digital customers enabled through Policies sourced through solutions mobile apps and tabs tablet/mobile App by advisors in Life Housing Finance Insurance Q4 FY20 Apr'20 100% Securities & Stock 100% 100% 100% 90% 89% Broking Advisor onboarding 75% On digital solution Insurance Broking “Office in a Box” digital solution across advisor lifecycle needs Q4 FY19 Q4 FY20 Apr-20 Life Insurance Mutual Fund Aditya Birla Capital Limited 6 Digital Assets available and Live Digital Asset launch planned in FY21
Progress on digitalization: Customer Servicing Digital Assets Deployment Outcomes No of registered customers for No of customer initiated interactions Website/ mobile apps WhatsApp services across ABC (Lacs) Key Business Status on WhatsApp across ABC (Lacs) Expansion of digital self service 4.6 34 channels for all customer Mutual Fund 3.3 requests and transactions 23 across LOB’s Life Insurance 6 0.7 Health Insurance Chatbot Q4 FY19 Q4 FY20 Apr-20 Q4 FY19 Q4 FY 20 Apr-20 Servicing over 2 lakh customer service requests/queries per NBFC month % services available digitally across Policy Renewal (%) via Digital ABC (Web, App, Chatbot, WhatsApp) Channel for Health Insurance Housing Finance 94% 82% Securities & Stock WhatsApp 80% Broking 66% WhatsApp & Chatbot 62% integration for conversational Insurance Broking experience for 200 + services Q4 FY 20 Apr-20 Q4 FY19 Q4 FY 20 May-20 Aditya Birla Capital Limited 7 Digital Assets available and Live Digital Asset launch planned in FY21
Future digitalization initiatives underway # Initiatives Future technology readiness 1 Integrated audio + video + chat + co-browsing technology To provide remote advisory by sales / partners for touchless pre-sales and purchase experience Developing self service Voice channel to service top queries and requests for customer convenience 2 Leveraging Voice Technologies Leverage Voice technology for telesales, customer retention & cross sell 3 Multilingual digital assets (website/ chatbots) To improve reach across new customer segments and geographies 4 Build cross sell Offer Factory Next best action/offers for customers using Natural language processing and Machine learning Building tech platform for faster integration and go to market with ecosystem partners 5 Partner Integration Fintech partnerships (Bizlabs) – Working with 30+ Fintechs to address business challenges Aditya Birla Capital Limited 8
Aditya Birla Finance Limited 9
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