Results for the quarter ended June 30, 2012 Investor Presentation August 11, 2012
Overview - Strong Fundamentals Slide 2
Key Performance Highlights Capital Adequacy Networth and Book value Per Share Total Assets * Based on standalone financials (Rs. Billion) (Rs.) (Rs. Billion) (%) 375.6 117.5 117.0 20.9% 353.4 20.2% 19.8% 479 79.0 78.4 78.3 476 335.4 325.8 316.4 17.7% 17.6% 319 319 322 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Total Income Profit After Tax Earnings Per Share (Rs. Billion) (Rs. Million) (Rs.) 3,293 13.41 20.0 16.8 15.9 15.5 14.9 602 2.45 451 1.84 334 348 1.36 1.42 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Slide 3
Key Performance Highlights Net debt - equity ratio: 1.64 2.57 2.55 CRISIL ‘A1+’ 2.27 • Highest credit rating for short 1.64 term borrowing program 1.56 ICRA ‘A1+’ • Highest credit rating for short term borrowing program CARE ‘AAA’ Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 • Highest credit rating for long term borrowing program Well capitalized to address future growth opportunities Slide 4
Capital invested in the Businesses (Rs. Million) Broking & AMC Distribution 361 7,000 Life Insurance Commercial 33,940 Finance 24,808 General Insurance 15,921 Most of the businesses are sufficiently capitalized Slide 5
Reliance Capital Asset Management Slide 6
Qualitative Highlights - Reliance Mutual Fund Amongst the top 2 Mutual Funds in India Retail Gold Fund has a leading market share of 28% in Gold Fund category Highest no. of SIPs and STPs in the industry 43 schemes - 21 equity, 19 debt, 2 ETFs and 1 Fund of Funds Wide distribution network - nearly 250 branches across India Slide 7
Qualitative Highlights - RCAM Nippon Life, largest private life insurer in Asia, signed definitive agreements to acquire 26% stake in RCAM Largest investment in any Indian AMC till date Largest FDI in the Indian MF sector till date Values RCAM at approx Rs. 56.0 billion (US$ 1.0 billion) - 7% of AAUM at the time of transaction Nippon to invest Rs. 14.5 billion (US$ 258 million) for 26% All regulatory approvals have been granted Expect to conclude the transaction in Q2 FY13 Slide 8
Financial Performance - RCAM No. of SIP and STPs Average Assets under Management Average Mutual Fund AUMs (in ‘000s) (Rs. Billion) (Rs. Billion) 1,462.6 1,419.7 1,408.5 1,012.6 2,008 1,893 1,823 906.6 1,674 823.1 806.9 1,582 781.1 1,041.4 931.5 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Profit Before Tax Total Income (Rs. Million) (Rs. Million) 1,792 1,011 1,674 700 709 656 1,631 586 1,550 1,520 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Slide 9
Reliance Life Insurance Slide 10
Qualitative Highlights - Reliance Life Insurance Leading player in the private sector life insurance sphere Wide distribution network across India with 1,230 offices Planned reduction in agency force (declined by 33% in Q1 FY13) focus on productivity and performance of agents Persistency at 53%, in line with industry expected improvements to coincide with change in product mix Slide 11
Financial Performance - Reliance Life Insurance Total Premium (net of reinsurance) New Business Premium Renewal Premium (Rs. Billion) (Rs. Billion) (Rs. Billion) 7.3 12.3 19.6 8.6 8.2 7.8 4.1 4.0 12.6 11.7 10.7 5.7 8.1 2.6 2.5 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Business Mix (Individual) Profit Before Tax (Rs. Million) (%) Surplus from Profit / Loss Surplus in Non-Participating Business 65% 78% 68% 71% 85% 895 915 985 669 676 35% 32% 29% 22% 219 15% 191 79 101 82 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 ULIP Traditional Slide 12
Financial Performance - Reliance Life Insurance No. of individual policies sold Agency Force (in ‘000s) (in ‘000s) 370 268 244 177.7 165.4 212 153.5 150.6 119.9 155 Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 Private Sector Market Share Funds under Management (%) (Rs. Billion) 5.7% 5.6% 187.7 185.9 177.4 167.5 165.5 5.3% 5.2% 5.0% Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 Slide 13
Reliance Commercial Finance Slide 14
Qualitative Highlights - Reliance Commercial Finance Amongst the leading lenders in the Indian NBFC sector Focus on secured lending and creating good quality loan portfolio Nearly 100% of book secured Over 91,000 customers across 18 locations in India Slide 15
Qualitative Highlights - Reliance Commercial Finance Portfolio Composition Others 4% Home Loan SME 20% 27% Infra. LAP Financing 27% 3% CVs 12% Segmental Yields Auto 15% 15% 14% 7% 14% 13% 13% Home LAP CVs Auto Infra. SME Loan Financing Slide 16
Financial Performance - Reliance Commercial Finance Gross NPLs AUM and Total Loan Portfolio Disbursements (Rs. Billion) (Rs. Billion) (Rs. Billion) (%) 23.4 152.9 151.1 150.3 2.6 150.8 19.9 20.1 2.2 2.1 17.0 142.6 15.9 142.5 1.8 139.3 1.5 135.9 132.4 130.3 1.7% 1.4% 1.5% 1.1% 1.2% Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 AUM Total Loans Yield and NIMs Cost-to-income ratio Total Income and Profit Before Tax (Rs. Million) (%) (%) 5,569 14.1% 14.0% 14.2% 4,951 4,992 13.6% 4,712 13.0% 4,178 18.9% 17.5% 15.8% 15.3% 13.9% 4.3% 4.1% 4.0% 4.0% 4.0% 756 656 651 583 547 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Yield NIM Total Income Profit Before Tax Slide 17
Broking and Distribution businesses Slide 18
Qualitative Highlights - Broking and Distribution Broking business consists of : Reliance Securities that caters to the retail clientele Quant Securities that focuses on the wholesale segment Exclusive tie-up with India Post to sell gold coins through its network Largest private sector partner for Western Union Money Transfer in India Pan India presence with over 5,800 outlets Slide 19
Financial Performance - Broking Cost-to-income ratio Total income Profit Before Tax (Rs. Million) (Rs. Million) (%) 923 105.1% 250 92.8% 91.6% 91.1% 690 72.9% 577 575 559 58 51 40 -29 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Average Daily Turnover Equity and Commodity Wealth Management AUM (Stock exchanges and Commodities) Broking Accounts (in ‘000s) (Rs. Billion) (Rs. Billion) 6.5 28.5 687 693 5.8 679 673 669 25.8 24.5 23.3 4.8 21.4 3.3 3.1 11.2 10.5 10.6 7.9 6.5 37 37 40 35 37 Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 Equity Commodity Stock exchanges Commodities 20 Slide 20
Financial Performance - Distribution (Reliance Money) Cost-to-income ratio Total income Profit Before Tax (Rs. Million) (Rs. Million) (%) 353 90.2% 337 102 82.7% 82.0% 74.9% 84 71.1% 215 156 147 26 27 21 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Gold Coin Distribution Money Transfer Transactions (In ‘000s) (In kgs.) 594 819 590 736 576 590 434 543 537 244 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Slide 21
Reliance General Insurance Slide 22
Qualitative Highlights - Reliance General Insurance Leading private sector General Insurer with 8% market share (as on June 30, 2012) Over 6.6 lakh policies sold in Q1 FY13 Wide network of 148 branches and over 7,600 intermediaries GWP from commercial lines of business at Rs. 1.7 billion (+28%) Exceptional provisioning on account of third party motor claims reserves of Rs. 205 million Slide 23
Financial Performance - Reliance General Insurance Combined Ratio Gross Written Premium Profit Before Tax (Rs. Billion) (Rs. Million) (%) 5.6 5.3 Q1 Q2 Q3 Q4 Q1 197% FY12 FY12 FY12 FY12 FY13 4.3 4.2 3.7 -201 -301 -287 -344 130% 123% 125% 120% -2,483 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY12 FY12 FY12 FY12 FY13 FY12 FY12 FY12 FY12 FY13 Business mix Investment Book No. of policies issued (in ‘000s) (Rs. Billion) Marine Others 685 683 2% 9% 28.7 27.0 659 Fire & 23.8 23.5 23.0 641 Engg. Motor 19% 605 55% Health 15% Q1 Q2 Q3 Q4 Q1 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 FY12 FY12 FY12 FY12 FY13 24 Slide 24
Other Businesses Slide 25
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