Shriram Capital Ltd Sanlam Investor Day – October 2012
Table of Contents Section 1: Executive Summary Section 2: Shriram Group Section 3: Shriram Capital Section 4: Overview of Financial Services operating companies A. Shriram Transport Finance B. Shriram City Union Finance C. Shriram General Insurance D. Shriram Life Insurance E. Shriram Credit Company Shriram Insight Share Brokers Shriram Fortune Solutions/ Shriram Financial Product Solutions Section 5: Shriram Capital future plans 2
Table of Contents Section 1: Executive Summary Section 2: Shriram Group Section 3: Shriram Capital Section 4: Overview of Financial Services operating companies A. Shriram Transport Finance B. Shriram City Union Finance C. Shriram General Insurance D. Shriram Life Insurance E. Shriram Credit Company Shriram Insight Share Brokers Shriram Fortune Solutions/ Shriram Financial Product Solutions Section 5: Shriram Capital future plans 3
Key Highlights- Shriram Capital Established in 1974, Shriram Group is one of the most respected Groups in India with an established track record of 35+ Impeccable years. Pedigree Currently Assets under Management is over US$ 11.80 bn The brand “Shriram” is one the most trusted and reputed brands in India which lends a competitive edge in attracting Brand Equity customers and exploring untapped business potential Presence of A mix of strategic and financial investors including Sanlam Group, TPG Investments, Chryscapital , Bessemer Venture Marquee Partners and ICICI Ventures, LeapFrog Investments etc Investors Diversified Presence in all aspects of Financial Services – Asset and Retail financing, Life and General Insurance, stock broking, conglomerate financial products distribution and wealth advisory services with cross sell Cross selling of various group products across 9.3 mn strong client base of the Group opportunities Shriram Transport is the largest used CV finance provider in the country with approximately 25% market share Shriram City is amongst the largest and one of the most well diversified retail finance NBFCs in India Competitively Shriram Life leverages on the captive customer base and infrastructure of the Shriram Group positioned Shriram General focuses mainly on motor insurance which forms a large part of Shriram Transport and Shriram City portfolio Shriram Transport with an FY12 RoA of 3.8% and an RoE of 22.8% is amongst the most profitable NBFCs with low NPAs of High Yielding 0.44% Businesses Shriram City Union with an FY 12 RoA of 3.1% and an RoE of 24% is highly profitable with low NPAs of 0.38% with low NPAs Shriram Life turned profitable in the very 1 st year of operation vs. 7-10 years for a typical life insurance firm without sacrificing growth Shriram General is among the few profitable general insurance companies despite following ‘Motor only’ strategy 4
Table of Contents Section 1: Executive Summary Section 2: Shriram Group Section 3: Shriram Capital Section 4: Overview of Financial Services operating companies A. Shriram Transport Finance B. Shriram City Union Finance C. Shriram General Insurance D. Shriram Life Insurance E. Shriram Credit Company Shriram Insight Share Brokers Shriram Fortune Solutions/ Shriram Financial Product Solutions Section 5: Shriram Capital future plans 5
Shriram Group Founder’s profile Mr. R. Thyagarajan Founder, Shriram Group Founder Chairman of the Shriram Group of Companies Founded the Shriram Group in 1974 to cater to the financial needs of a very large “unbanked / credit starved” customers Has envisioned and strategized the development of the financial businesses as well as the Shriram Group’s diversification int o non-financial businesses By inculcating the philosophy of “putting people first”, has transformed the Shriram Group into India’s premier networked financial services supermarket chain Has four decades of experience in general insurance industry – Has worked with New India Assurance Co. Ltd., J.B. Boda & Co. Pvt. Ltd. and has mentored several large insurance broking companies Education: Masters in Mathematics Masters in Mathematical Statistics from Indian Statistical Institute, Calcutta Associate of Chartered Insurance Institute, London Visiting faculty of Asian Institute of Insurance, Philippines on Consequential Loss Insurance Among the most respected visionaries in the financial services industry in India 6
Shriram Group Brief Overview Established in 1974, Shriram Group is one of the most respected Groups in India with a predominant presence in the financial services space Shriram Capital Limited (SCL) is the overarching holding arm of all the financial services entities of the group. Currently its financial service businesses include commercial vehicle (CV) financing, retail financing, chit fund, equipment financing, mortgages, life insurance, general insurance, stock broking, distribution of financial products and wealth advisory services. Shriram Group (non financial services arm) has significant presence in engineering services, property development, information technology and interest in auto component manufacturing and renewable energy. The group manages assets of over US$ 13 bn (including non-financial services). The group has been promoting financial inclusion across sections of the society. Key Financials (aggregated (1) ,in USD mn) FY12 Key Operating Parameters 2,670 Branch Network Over 2,500 Revenue Marketing Force Over 100,000 Profit After Tax 369 13,351 Manpower Strength Over 51,000 Assets Under Management (AUM) Customer Base Over 9.3 mn Note 1: Aggregated financials including non-financial services Note: FY12, FY11 & FY10 respectively represents Financial Year ending on 31 st March 2012, 31 st March 2011 & 31 st March 2010 throughout this presentation Note: Exchange rate has been taken as 1 US $ = Rs. 52 throughout this presentation 7
Shriram Group Holding Structure Shriram Group Shriram Ownership Trust Shriram Enterprise Trust (holding Financial Services Businesses) (holding Non-Financial Services Businesses) Shriram Chits Shriram Capital (Tamil Nadu/ Hyderabad/ Limited Karnataka/Maharashtra) (Chit Fund Business) Shriram Enterpreneurial Ventures Limited Shriram Credit Co. Shriram Insurance Shriram Transport Shriram City (Brokerage, Financial Engineering / Property Development / Businesses Finance (Listed) Union (Listed) Product Distribution Information Technology / Auto Component (Life & General (Commercial Vehicle (Retail, Enterprise, Infrastructure support Manufacture / Renewable Energy Insurance) Finance) and Gold loan ) and PMS & Wealth Mgt) Shriram Equipment Shriram Housing (Construction Finance Equipment (Mortgages) Finance) Shriram Automall (Facilitate secondary sale of trucks) The Shriram group manages its businesses through two Trusts. These trusts are run independent of each other with a significant number of trustees being independent professionals Shriram Ownership Trust holds the financial services businesses and Shriram Enterprise Trust holds the non financial services businesses Note: Only the main holding company and main operating businesses are depicted above 8
Shriram Group Partners and Investors Business Company Investor Domain Investors SANLAM Group of South Africa Shriram Financial Ventures International (Chennai) Private Limited Holding company TPG Investments Shriram Capital Limited International Truck Finance Shriram Transport Finance TPG Investments, Chryscapital, Blue Ridge, Tiger Global International Management LLC Domestic Axis Bank, Citi Corp, JM Finance Ventures Retail Finance Shriram City Union TPG Investments, Merrill Lynch, Chryscapital, Cambridge Place International Finance Investment Management, Bessemer Venture Partners, Asia Bridge ICICI Venture Domestic Valiant Capital Partners Housing Finance Shriram Housing Finance International Life Insurance Shriram Life Insurance SANLAM Group of South Africa International Non-Life Insurance Shriram General Insurance Stock Broking & Distribution Shriram Credit Company LeapFrog Financial Inclusion Fund International of Financial Products Engineering Chryscapital, Bessemer Venture Partners, New Vernon, Argonaut Shriram EPC Ventures, Hamon Group & Cie of Belgium, Leitwind B.V. Olympus International Capital, India Industrial Growth Fund, Gaja Partners, Equipaggiamenti Electronic Industrial UTI – IAS Domestic Property Development Sun Apollo, Walton Street Capital, Starwood Capital, TPG Shriram Properties International Investments and India Opportunity Real Estate Fund Note: Includes Past and Present investors & partners Includes only primary infusion. Does not include secondary/market purchases 9
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