Bajaj Finserv Limited

Investor Presentation Q3 FY17*

*Financialyear201617
Disclaimer
This presentation has been prepared by Bajaj Finserv Limited (the Company) solely for your information and for your use. This presentation is for information
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the purposes of this presentation. You may also refer to the financial statements of the Company available at www.bajajfinserv.in, before making any decision
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This presentation contains statements that may not be based on historical information or facts but that may constitute forwardlooking statements. These
forward looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to
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Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. 2
BajajFinserv Adiversifiedfinancialservicesgroup

58% 74% 74%

Bajaj Finance Bajaj Allianz General Bajaj Allianz Life

Limited Insurance # Insurance #

Diversified NBFC present in 2nd largest private General insurer 4th largest private player in India in FY
consumer finance, SME, in India as of FY16 16 by new business
commercial and rural lending Offers a wide range of products Deep, pan India distribution reach
across retail & corporate segments Diversified distribution mix agency,
Strong distribution presence banca, alternate channels, direct etc
Highest PAT among private players
Book size of over Rs 427 Bn as of and 2nd highest in industry in FY16. FY 16 AUM of over Rs 441 Bn
FY16. ROE of 22.5% in FY16 Networth of Rs 76,315 Mn as of 31
Net NPA stood at 0.28% in FY16 Combined ratio of 99.3% in FY16 Mar 2016
Recognized in the market for claims One of the most profitable private life
Leading player in consumer insurers in India
servicing
electronics financing

Bajajgrouphasalongtrackrecordofbuildinglargescale,profitablebusinesses
BajajFinservisadiversifiedfinancialservicesgroupspanninglifeinsurance,generalinsurance,and
lending,withapanIndiapresence.
BajajFinservisalsoalistedopportunitytoparticipateinIndiasinsurancesector.

Shareholdingisasof31St December2016.Chartshowsonlymajorsubsidiaries.
#Notlisted 3
BajajFinservperformancehighlights

All Figures in Rs Million

Performance Highlights of Q3 FY2017 over Q3 FY2016

CY 68,344 13,782 6,138 27,597

27% 44% 41% 4%

PY 53,959 9,542 4,373 26,564

Gross Revenue Profit before Tax PAT Net Worth
(Consolidated) (Consolidated) (Consolidated) (Standalone)

Bajaj Finserv : Bajaj Finserv remains a debt free company. Bajaj Finservs surplus funds stood at
Rs. 5,586 million as on December 31, 2016.

Consolidated Net Worth stood at Rs. 152,625 million and Consolidated Book Value Per Share at
Rs. 959.

4
Consolidatedprofitcomponents
All Figures in Rs Million
Consolidated profit components for Q3 FY2017
Intercompany
adjustments
Bajaj Finserv-
Bajaj Allianz Standalone -
Financial
Distributors 63
Life 6,138
Insurance - Bajaj Finserv
General -
Insurance 1,424
Consolidated
Bajaj Finance 1,458

3,193

Consolidated profit components for Q3 FY2016

Intercompany
adjustments
Bajaj Finserv-
Bajaj Allianz Standalone -
Financial 102
Life Distributors
Insurance 4,373
3 Bajaj Finserv
General
1,411 -
Insurance
Consolidated
Bajaj Finance 507

2,350
5
 9MHighlights
All Figures in Rs Million

GroupCompanyHighlights
BAJAJFINSERV 9MFY17 9MFY16 Growth BALIC 9MFY17 9MFY16 Growth
Gross Revenue 194,162 154,081 26% GWP 39,355 34,788 13%
Networth (Cons) 152,625 129,098 18% TotalInvestments 468,057 433,614 8%
PAT 17,270 13,453 28% PAT 6,380 6,474 1%

BAGIC 9MFY17 9MFY16 Growth

ConsolidatedProfitComponents*
GWP 54,276 41,705 30%
3% 3% 2% 4% 3%
17% 23% 29% Investments 104,726 90,899 15%
7% 33% 40%
14% PAT 5,630 3,563 58%
20%
25%
22%
73%
60% BAJAJFINANCE 9MFY17 9MFY16 Growth
49%
38% 35%
AUM 576,048 434,518 33%
201112 201213 201314 201415 201516 TotalIncome 73,961 54,260 36%
BALIC BAGIC BFL Others PAT 13,874 9,635 44%

OthersincludesBajajFinservStandalone,andallremainingcomponents. 6
Bajaj Allianz General Insurance

7
GeneralInsurance Overview

STRATEGY

Growfasterthanmarketinchosensegments.
Presenceacrossretailandcommerciallines,withafocuson
retailbusiness
Emphasisonprofitabilitythroughsuperiorunderwriting,&
strongcashflowgeneration,resultinginsuperiorROE
Deliverindustryleadingcustomerexperience

8
GeneralInsurance Overview

DIFFERENTIATORS

Industry leading combined ratios over the last

Underwriting several years with superior ROE.
Strength Highest PAT in private sector in FY16

Trend-setter in the industry for cash-less claims.

First to insource health insurance administration.
Sustained Innovation
Geographic expansion through unique models like
virtual points of sale, All women branches etc

Multi Channel Multi-channel distribution with pan India presence.

Over 8.3 Mn policies in FY16
Distribution

9
 GeneralInsurance Overview

CombinedRatio
(incl MotorPoollosses)
120.0% 113.5%
110.0% 104.8% 105.0%
102.2% 101.0% 101.5%
99.5% 98.1% 99.3%
100.0% 96.7%

90.0%
Industryleadingcombinedratios
80.0%
70.0%
onasustainedbasis
60.0%
50.0%
201112 201213 201314 201415 201516

BAGIC Top5PrivatePlayers

ROE
35%
28% 29%
30% 27% 25%
25% 22% 23%
21%

Consistentlydeliveredindustry
20% 16%
14%
15%
10% beatingROEs
5%
0%
5% 201112 201213 201314 201415 201516

10% BAGIC Top5PrivatePlayers

10%
15%

Basedoninternalworkingsusingpubliclyavailabledata.
Top5Privateplayersreferstotop5nonspecializedprivateplayersbyGDPIasofFY16(includesBAGIC).
CombinedratioexMotorThirdPartyPoolforBAGICfromFY12toFY14were93.8%,89.4%and94.2%respectively 10
Premiumupdate

BAGICPremiumTrend
DiversifiedDistributionMix

59.01
70.00

54.28
53.01
60.00
45.84

45.72

41.70
41.09

40.09
21% 16% 15%

37.62
37.61
28%
36.76

50.00

33.06
32.03
Rs.Billion

26.96

40.00 36% 40% 41%

36%

17.22
30.00
14%

13.48
14% 13%

12.75
11.19
7% 7% 7% 13%
20.00 5%
23% 24% 24% 18%
10.00
FY15 FY16 9MFY2016 H1FY17

AxisTitle

IndividualAgents CorporateAgentsBanks
CorporateAgentsOthers Brokers
GWP NWP DirectBusiness

BAGIChasconsistentlybeenamongthetop2insurersintermsofGWP.
BAGIChasoneofthemostdiversifieddistributionchannelsintheindustrywithacombinationof
directandintermediatedchannels.
StronggrowthinGWPforQ3at28%

11
BusinessmixandAUMgrowth

BusinessMix AUM(cashandinvestments) RsBillion

100% (asofendofperiod)
11% 9% 9% 9% 10% 9% 9%
8% 6% 2% 120
19% 18% 13% 14% 104.7
20%
16% 16% 5% 100 92.1
9% 11%
6% 8% 6%
5% 6% 6% 6% 7% 78.6
5% 6% 6% 80 69.7
6%
50% 58.4
60
47.6

58% 59% 59% 65% 40

55% 56% 53%
20

0% 0
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY FY12 FY13 FY14 FY15 FY16 Q3FY2017
2016 2017

Motor RetailHealth GroupHealth

Prop,Liability,Engg Agri(CropInsurance) Others

DuringQ3FY2017thecompanyhaswrittencropinsuranceofRs 2401MnagainstRs 277MninQ3FY

2016
AUMcrossedRs100Bn inFY17
AUMis3.1timestheNetWorthasat31st December2016

12
CapitalefficiencyandPATtrend

PAT
BAGIC CapitalInvested Networth 6,000 5,623 5,642 5,630
36000 33,486
5,250
32000 27,897
25,818 4,500 4,090
28000
22,255 3,563
3,750

Rs.Million
24000
Rs.Million

2,951
20000 16,643 3,000
16000 12,553 1,971
2,250
12000 9,587

2,768

2,768
1,500 1,237
2768

2768

2768

2768

2768
8000 685
4000 750
0
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY 9MFY 9MFY
2016 2017 2016 2017 2016 2017
CapitalInvested NetWorth

BAGICsNetworthisover10xthecapitalinfused
ItisoneofmostprofitableprivatesectorinsurerswithhighestROEsamongstthetopcompaniesin
theindustry

13
BajajAllianzGeneral Q3highlights
All Figures in Rs Million

Performance Highlights of Q3 FY2017 over Q3 FY2016

CY 17,216 12,588 1,971 6.1%

28% 21% 190%

PY 13,484 10,373 685 2.7%

Gross Written Net Earned Premium Profit After Tax ROE
Premium (Not Annualized)

CY 99.6% 70.8%

Solvency Ratio was 258% as against regulatory

requirement of 150% as of 31st December 2016

PY 108.7% 77.3%
Combined Ratio Claim Ratio

14
Bajaj Allianz Life Insurance

15
LifeInsurance Overview

STRATEGY

Growregularpremium

Diversifieddistributionchannelswithanemphasison
individualagents

Maintainasustainableproductmix

Maintainleadershipamongstprivatecompaniesinthe
financialinclusionsegment

16
LifeInsurance Overview

DIFFERENTIATORS

Deep pan India distribution presence

Large Proprietary Focus on improving efficiency and productivity of
Agency Force agency channel

BALIC leads the private sector, with about 40%

Financial Inclusion share of lives covered in group schemes (FY16)
Well entrenched participant in rural markets through
partnerships with Rural banks, MFIs, SFBs etc.

Sustainable Model Higher mix of ULIP in top tier markets, higher mix of
traditional in lower tier markets

17
 Newbusinessupdate
All Figures in Rs Million

IndividualRatedNB GroupNB
9,000 25,000
7,755
8,000 7,172 19,938
7,000 6,236 20,000
16,451
6,000 14,847
5,000 15,000
4,018 11,369
4,000
2,854 10,000
3,000
1,761 4,833
2,000
5,000 3,225
1,000

FY15 FY16 9MFY2016 9MFY2017 Q3FY2016 Q3FY2017 FY15 FY16 9MFY2016 9MFY2017 Q3FY2016 Q3FY2017

AgencyIndividualRated
NB BALICsfocusistogrowregularpremiumwhichisreflectedin
5,485
individualratedpremium
6,000
5,000 BALICsIndividualRatedNewBusinesshasgrown62%inQ3FY17
3,627
4,000 and55%in9MFY17overQ3FY16&9MFY16respectively
3,000 2,555
1,592 AgencychannelsIndividualRatedNewBusinessisup60%inQ3
2,000
1,000
FY17overQ3FY16.Changeseffectedinagencyoverlast2yearshave
startedtopayoff.
9MFY2016 9MFY2017 Q3FY2016 Q3FY2017

18
Diversifiedproductmix

IndividualRatedNBPremium ProductMix IndividualRatedNBPremium ProductMix

100% 80% 75%
68%

60% 53%
45% 46%
51% 40%
50% 45% 42% 42% 40%
27%
21%
20%
13% 9%
8% 7% 4% 5%
0% 0%
IndividualPar IndividualNonPar IndividualUnit IndividualPar IndividualNonPar IndividualUnitLinked
Linked Q3FY2016 Q3FY2017 9MFY2016 9MFY2017
201415 201516

IndividualRatedNBproductmixiswelldiversifiedacrosspar,nonparandUL
GroupBusiness:GroupFundbusinessinQ3FY17wasRs 2,827Mn(Q3FY16Rs 1,207Mn)and9MFY17
Rs 8,574Mn (9MFY16Rs 6,019Mn).In9MFY17GroupFundbusinesswas40%ofNewBusiness(PY36%)

19
AssetsUnderManagementaresignificant

AUMBreakup(Rs Billion)
AUM(RsBillion) (asofendofperiod)
(asofendofperiod)
350
500 468 300 UnitLinked OtherthanUnitLinked
436 441
450 300 273
394 380 388 249
400 245
250
213 216 219
350 195
192
300 200 175
250 135
150
200
94
150 100
100
50
50
0 0
FY12 FY13 FY14 FY15 FY16 Q3FY2017 FY12 FY13 FY14 FY15 FY16 Q3FY2017

OftheULFundsofRs 195Billion,63%isequityfundsasat31st December2016

20
CapitalefficiencyandPAT
CapitalInvested Networth All Figures in Rs Million
90,000 82,698
80,000 76,315 73,999
67,490
70,000
58,708
60,000
50,000 48,441 BALICsNetworth is6.8times
40,000 theCapitalinfused.
35,606

12,107

12,107

12,107

12,107
12,107

12,107

12,107
30,000 NoCapitalinfusedafterFY08
20,000
10,000
0
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY
2016 2017

CapitalInvested Networth

PAT
15,000
13,112 12,856

10,246
10,000 8,762 8,790 Includes net Transfer from
6,474 6,380
Policyholders account to
P&L Rs 299 Mn in Q3 FY17
5,000 (Q3 FY16 Rs 414 Mn).
1,908 1,924

FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY 9MFY 9MFY
2016 2017 2016 2017

21
BajajAllianzLife Q3highlights
All Figures in Rs Million

Performance Highlights of Q3 FY2017 over Q3 FY2016

CY 2,854 4,833 7,026 14,847

62% 50% 2% 21%

PY 1,761 3,225 6,867 12,252

Individual Rated NB Group NB Renewal Premium Gross Written Premium

CY 1,924 771% 468,057

1% 8%

PY 1,908 Solvency Ratio as on 433,614

PAT 31st December 2016 AUM

22
 Bajaj Finance Limited #

# Standalone 23
BajajFinance Overview

Overview

A non bank with strategy, structure & support model of a bank

Diversified financial services strategy envisages an optimal mix of

risk and profit to deliver a sustainable business model

The business construct is to deliver a sustainable and superior

ROA & ROE

24
BajajFinance Overview

DIFFERENTIATORS

Strong brand equity of Bajaj Focus on mass affluent and

group above customers

Strong focus on cross-sell

covering assets, insurance & Diversified lending strategy
wealth products

Deep investment in
Highly agile and innovative
technology and analytics

25
BajajFinance Business/ProductLaunchJourney

AUM mix:
Consumer (47%), SME
(37%), Commercial (12%),
Rural (4%) as of Q3FY17

26
BajajFinancehasclockedhealthygrowthin
revenues All Figures in Rs Million

BookSize TotalIncome
600,000 542,848
80,000 73,835
500,000 417,604 70,000
427,558
60,000 54,182
400,000
311,994
50,000
40,744
300,000 40,000
229,710 31,097
30,000 27,291
200,000 167,436 21,719 20,696
122,831 20,000
100,000
10,000

0
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY
2016 2017 2016 2017

NetInterestIncome
50,000
44,566

40,000
31,699
30,000
25,011
19,040 17,489
20,000
14,257 13,203

10,000

0
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY
27
2016 2017
Qualityofassetsisgood,andoperatingcostsremain
undercontrol All Figures in Rs Million

Operatingexpensesasa%ofNII LossProvisionandNetNPA%
6000 2.00%
5,429

60% 47% 5000

45% 46%
45% 44% 42% 41%
50% 4000 3,846

40% 3000 2,588

30% 1,797
2000 1,818 0.45% 1,462
1,544
20% 0.28% 0.28%
1000 0.19%
10% 0.12% 0.39%
0.26%
0% 0 0.00%
FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY
2016 2017 2016 2017
LossProvision(Rs.millions) NetNPA%

PAT
14,000 12,785
12,000

10,000 8,979

8,000 7,190
5,913 5,557
6,000
4,064 4,085
4,000

2,000

FY12 FY13 FY14 FY15 FY16 Q3FY Q3FY
2016 2017 28
BajajFinance Q3highlights
All Figures in Rs Million

Performance Highlights of Q3 FY2017 over Q3 FY2016

CY 542,848 27,291 5,557

30% 32% 36%

PY 417,604 20,696 4,085

Book Size Total Income Profit After Tax

CY 1.1% 6.4%

Borrowing mix is not excessively dependent

on banks (37:63 mix between banks and
other sources as of 31st December 2016).
Capital Adequacy stands at 21.26% as of 31st
PY December 2016
1.0% 5.8%
Return on Assets ROE
(Non-annualized) (Non-annualized)
29
ThankYou

30