religare enterprises · pdf file · 2015-03-20religare enterprises limited ......
TRANSCRIPT
Religare Enterprises Limited
March 2015
1
Religare Enterprises Limited REL is an investment holding company that has built an integrated financial services platform
• Religare Enterprises Limited (REL) is an investment holding company that has built an integrated financial services platform through its portfolio companies
• Portfolio companies service over 1.44 mn. clients from over 1,700 locations with more than 7,200* employees in India and abroad
• Consolidated net worth of ₹38.57 bn. (USD 605 mn.) as of 31-Dec-2014. Consolidated revenue of ₹11.3 bn. (USD 182 mn.) in Q3FY15
• Listed on NSE and BSE: market capitalization of ₹65.85 bn. (~USD 1.03 bn.) as of 31-Dec-2014
Q3FY15
Business Overview
Portfolio Companies’ Business Lines and Revenue Split by Verticals
11%
48% 29%
11%
Lending
Capital Markets & Wealth Management
Asset Management
Insurance
*Including joint venture employees
2
Portfolio Functions Overview REL’s primary objective is to ensure that its portfolio companies create equity value
REL Structure and Functions
• Religare Enterprises Limited (REL) is a Non-Operative Financial Holding Company managed and supervised by its professional and independent Board
• The businesses are operated out of its portfolio companies which are structured as subsidiaries or joint ventures
• Portfolio companies are managed by their CEOs and management teams on a day-to-day basis
• REL’s objective is to ensure that the portfolio companies create equity value
• To that end, REL
• Provides capital to the portfolio companies
• Ensures that the Brand and Group ethos are safeguarded
• Determines the Governance Structures, Risk Management and Control mechanisms for the portfolio companies
• Undertakes performance management
REL Structure and Functions
• Religare Enterprises Limited (REL) is an Investment Holding Company managed by a set of professionals and supervised by a majority-independent Board
• The businesses are operated out of its portfolio companies which are structured as subsidiaries or joint ventures
• Portfolio companies are managed by their CEOs and management teams on a day-to-day basis
• REL’s objective is to ensure that the portfolio companies create equity value
• To that end, REL
• Provides capital to the portfolio companies
• Ensures that the Brand and Group Ethos are safeguarded
• Determines the Governance Structures, Risk Management and Control mechanisms for the portfolio companies
• Undertakes performance management
Growth in Portfolio REL has consistently grown its portfolio of businesses by investing in adjacencies organically and inorganically
Religare Securities Retail Equity Broking
Religare Commodities Retail Commodity Broking
Religare Finvest Lending
Religare Securities Retail Equity Broking
Religare AMC** Asset Management
AEGON Religare Life Insurance
Religare Private Wealth* Wealth Management
Religare Commodities Retail Commodity Broking
Religare Finvest Lending
Religare Securities Retail Equity Broking
Religare Global Asset Mgmt. Alternate Investments
Religare Capital Markets Capital Markets
Religare AMC** Asset Management
AEGON Religare Life Insurance
Religare Private Wealth* Wealth Management
Religare Commodities Retail Commodity Broking
Religare Finvest Lending
Religare Securities Retail Equity Broking
Religare Health Insurance Health Insurance
Religare Global Asset Mgmt. Alternate Investments
Religare Capital Markets Capital Markets
Religare AMC** Asset Management
AEGON Religare Life Insurance
Religare Private Wealth* Wealth Management
Religare Commodities Retail Commodity Broking
Religare Finvest Lending
Religare Securities Retail Equity Broking
1994 2004 2008 2010 2012 2007
3
ESOP Scheme: Management holds 20% economic interest in equity
IFC investment in REL: ₹4.05 bn. PE Investments in RFL –
Jacob Ballas: ₹2 bn. and Avigo: ₹1.5 bn. Invesco inducted as strategic partner in RAMC
Religare IPO Oversubscribed 159 times
*Formerly known as Religare Macquarie Wealth Management; Religare has acquired Macquarie’s interest in the JV **Now known as Religare Invesco AMC
4
Holding Structure The Promoter Group holds nearly 51% of REL’s equity
Management given ~20% economic interest in equity to align their interests with shareholders
Authorised ESOP Pool (% of Equity Capital) Religare Enterprises 10.0% Religare Finvest 10.0% Religare Securities 7.5% Religare Capital Markets 25.0% Religare Invesco Asset Management§ 10.0% Religare Health Insurance 12.5%
100%
Promoter Group Public
Religare Enterprises Limited
Religare Securities
Limited
Religare Health
Insurance Co. Limited
RGAM Investment
Advisers Pvt. Ltd.
Religare Invesco Asset Management Co. Pvt. Ltd.@
Religare Capital
Markets Limited#
AEGON Religare Life
Insurance Co. Limited
Religare Commodities
Limited
Religare Housing Dev. Finance Corp.
Limited
50.93% 49.07%
84%* 100% 100% 51% 90%
87.5%
Listed on BSE and NSE
100%
Religare Finvest Limited
44%
Shareholding Pattern as of 31-Dec-2014 *Assuming conversion of outstanding CCPS and CCDs #RCML has been deconsolidated from REL w.e.f. 01-Oct-2011 @Held through Religare Securities Limited and RGAM Investment Advisers Pvt. Ltd. §Vested and exercised as part of the Invesco transaction
Religare Wealth
Management Limited
100%
5
Section I : Strategic highlights
Section II : Key operating subsidiaries overview
Table of contents
6
Religare Enterprises Limited Key investment highlights
India’s long term growth potential presents tremendous opportunity for financial services 1
Capital flows from developed markets to emerging markets provide significant opportunities for financial services businesses 2
Robust platform built to capture these opportunities – large diversified financial services business based out of India with critical mass in products and distribution • One of the largest Small and Medium Enterprises (SME) focussed NBFC in India, with a book size of ₹120.9 bn. (USD 1.9 bn.)* • Amongst the leading players in Retail Equity Broking and Retail Commodity Broking in India with a footprint of 1,520* locations • Indian Asset Management company with a formidable investment track record and Avg. AUM of ca. ₹198 bn. (USD 3.2 bn.)** • Approx. USD 19.6 bn.* (ca. ₹1.25 tn.) in AUM from affiliates in alternative investment management globally
3
Best-in-class processes, technology and infrastructure to capture synergies across business lines 5
Professional management with vast experience and a long tenure 4
*As at/quarter ended 31-Dec-2014 **For the period 1-Oct-2014 to 31-Dec-2014
7
India’s long term growth presents enormous opportunities for financial services Penetration levels of most financial products well below developed markets and other emerging market peers
1
India’s GDP is projected to grow rapidly in the long run
Massive increase in the ‘middle class’ Increased demand for financial services given
low penetration
271.7
>3x
2030E 2020E
151.9
2012
88.5
India GDP ₹ tn. at 2012 prices
Globals (>1000)
Strivers (500-1000)
Seekers (200-500)
Aspirers (90-200)
Deprived (< 90)
Globals (>1000)
Strivers (500-1000)
Seekers (200-500)
Aspirers (90-200)
Deprived (< 90)
20
05
E 2
02
5F
Household income brackets
thousands, ₹ (Year -2000)
Number of households
million
Aggregate disposable income
trillion, ₹ (Year -2000)
101.1
91.3
10.9
2.4
1.2
49.9
93.1
94.9
33.1
9.5
2.6
13.7
30.6
20.9
21.7
5.4
11.4
3.1
1.6
2.0
Indian middle class to swell to from 13 million households in 2005 to 128 million households by 2025 corresponding to 41% of population
40 37 16
India Malaysia S Korea
16 9
3
India Japan S Korea
32
13 5
India Japan S Korea
Mutual Fund - AuM / GDP % FY11
176 168
55
Singapore India S Korea
Insurance - Sum assured / GDP %
Brokerage – Share of stocks in household assets (%)
Lending – Loan Book/GDP (%)
Source: RBI, McKinsey, CIA World Factbook 2010, World Bank Indicators, Credit Suisse Global Wealth Databook 2010, Swiss Re, ICI Factbook 2010
Capital flows from developed markets to emerging markets are expected to quadruple in two decades Significant opportunities for financial services business with deep understanding of emerging markets
8
2
Emerging markets GDP over 50% of world GDP
61% 51% 41%
39% 49% 59%
2010E 2020E 2030E
Emerging Markets Developed Markets
Emerging markets equity market capitalisation to dominate
Provide platform for
facilitating the flow of
capital from developed to
the emerging markets
Significant revenue
potential in emerging
markets over next two
decades
• USD 14 trillion of
equity issuance
• USD 420 billion
revenue opportunity
from primary issuance
and secondary market
commissions
69% 56% 45%
31% 44% 55%
2010E 2020E 2030E
Emerging Markets Developed Markets
Institutional investors to own substantial emerging
markets assets
Developed Markets Emerging Markets
REL Presence
1.3 3.7
10.6
2010E 2020E 2030E
(US$ tn)
Emerging markets will outweigh the developed markets in the next two decades
Developed market investments in emerging markets are likely to increase manifold
Significant opportunities for financial services
Source: United Nations, International Monetary Fund, Goldman Sachs
Lending • Religare Finvest Ltd. is one of India’s largest
NBFCs focused on SMEs • Loan book of ca. ₹120.9 bn. (USD 1.9 bn.)* • High quality portfolio: net NPA of 2.02%*
(90-day basis) • Capital adequacy (CRAR) of 16.3%*
India Asset Management Avg. AUM of ₹198 bn.** (USD 3.2
bn.) Partnership with Invesco provides
access to global distribution and investment strategies
Global Alternative Asset Management Approx. USD 20 bn.* (₹1.28 tn.) of
international AUM in alternative assets
Incubating AIFs in India and Asia across high-yield debt; healthcare, education & consumer private equity; value investing in public equities; real estate investments
Health Insurance Leverage group’s healthcare assets 4,195 hospitals in provider network Life Insurance JV with AEGON; capital protection with
guaranteed returns of at least 12% p.a.
Retail Broking Among India’s largest retail equities
and commodities broking platform Distribution across more than 500
cities, 1,520 locations and catering to over 1 mn. clients
Capital Markets 96 member team and presence
across 4 countries Research coverage of over 250
companies globally Wealth Management Providing an advisory-led proposition
on an open architecture platform Focus on increasing wallet share of
clients
9
Robust platform in place to capture opportunities in financial services Multi-product manufacturing capabilities and distribution
3
*As at 31-Dec-2014 **For the period 1-Oct-2014 to 31-Dec-2014
Lending
Asset Management
Capital Markets &
Wealth Management
Insurance
10
Group Executive Portfolio Companies’ Key Leadership
Sunil Godhwani, CMD (Joined Religare in 2001)
Established the vision for the group and provides strategic direction. His leadership has helped Religare transform from a standalone broking business to an integrated financial services group. Leads and manages strategic acquisitions and expansion, manages relationships with JV partners
Shachindra Nath, Group CEO (Joined Religare in 2000)
Core member of the team responsible for the transformation of Religare into one of India’s leading financial services firms. Responsible for the formulation of corporate strategy and management of day-to-day activities of the group. Over 17 years of experience in the financial services industry
Anil Saxena, Group CFO (Joined Religare in 2001)
Core member of the team responsible for the transformation of Religare into one of India’s leading financial services firms
Responsible for the overall supervision of the finance function and execution of all strategic matters
Over 21 years of experience in the financial services industry
Kamlesh Dangi, Group Chief People Officer
Over 18 years experience Prior Experience:
HR
, Ad
min
&
Shar
ed
Se
rvic
es
Kavi Arora, MD & CEO – Religare Finvest
Len
din
g
Over 19 years’ experience Prior Experience:
Professional management with vast experience and long tenure Portfolio companies managed by independent management teams under Group Executive oversight
4
Re
tail
Bro
kin
g Nitin Jain, MD & CEO – Religare Securities Ltd.
Over 15 years’ experience Prior Experience:
Ind
ia A
sse
t M
anag
em
en
t Saurabh Nanavati, MD & CEO – Religare Invesco Asset Mgmt. Over 17 years’ experience Prior Experience:
Glo
bal
Ass
et
Man
age
me
nt Nalin Nayyar, CEO –
RGAM India Over 22 years’ experience Prior Experience:
Cap
ital
Mkt
s.
– In
dia
Gautam Trivedi, CEO – India, Religare Capital Markets Over 18 years’ experience Prior Experience:
Cap
ital
Mkt
s.
– In
tern
atio
nal
Sutha Kandiah, CEO – International, Religare Capital Markets Over 18 years’ experience Prior Experience:
Hea
lth
In
sura
nce
Anuj Gulati, MD &
CEO – Religare
Health Insurance Over 18 years’ experience Prior Experience:
Senior management of portfolio companies comprises highly
accomplished professionals with vast experience and a long tenure
Key awards and accolades for distinct capabilities IT infrastructure deploys best in class technology and applications
Best-in-class processes, technology and infrastructure Platform is poised to capitalize on the India opportunity
5
In-house 350+ resource shared services setup to support various transactional and processing requirements for the businesses
• 5,500 square feet of data centers
• Capability of handling 1.5 million of trades in a day
• Network Capability of handling 1 GBPs of Internet traffic
RSL awarded the "Best Investor Education &
Category Enhancement – Currency Broker" at the
Bloomberg UTV Financial Leadership Awards
Shared Services Capability Matrix
RHIL awarded “Rising Star Insurer – Health Insurance”
at the India Insurance Awards 2014
ARLI awarded “E-Business Leader“ in Life Insurance at the India Insurance Awards
2013 and 2014
11
12
Section I : Strategic highlights
Section II : Key operating subsidiaries overview
Table of contents
Lending – Religare Finvest Business Overview
One of India’s largest Non-Banking
Financial Companies,
focusing on the SME segment
Business Highlights
Improve ROE
Continuous Growth in Book
Ensure Low NPAs Strategic Priorities
8% 62%
Loan Book Split – 31-Dec-2014
Offerings Business Mix
Net worth of
₹23.96 bn.
Lending book of
₹120.9 bn.
48% of REL’s
consolidated revenue
(as of/q.e. 31-Dec-2014)
SME Working Capital
SME Loan Against
Property
SME CE/CV Finance
Capital Market
Lending
8% 2%
75%
15%
Capital Market Lending
SME Loan Against Property
SME CE/CV Finance
SME Working Capital
13
14
Non-Performing Assets§
Growth capital provider focused on
fast-growing SME segment
• The sector contributes 17% to India’s GDP, 45% to manufacturing output and 40% to the total value of exports
• Current loan book size c. ₹120.9 bn. (USD 1.9 bn.)
Strong performance across credit
and operating benchmarks
• Secured asset finance portfolio over 86%
• Net NPA of 2.02% on 90-day basis and 1.28% on 180-day basis as at 31-Dec- 2014
Significant headroom for operating
leverage through tested
management strength, processes
and systems
Winner of Finnoviti 2012 Award of
“Innovation in Process” for the
unique credit appraisal process
Key highlights Strong growth in SME Lending assets – SME LAP book size up by ₹7.7 bn. QOQ
12.6
64.6
20.9
13.5
66.1
22.3 23.5
66.2
15.0
23.2
58.7
14.4
21.6
51.8
17.6
Lending SME lending book continues to grow strongly
(₹ bn)
* Net of portfolio assigned to other lenders § NPAs are recognised at 90 days as against the regulatory requirement of 180 days; NPA percentage disclosed reflects all delinquencies (incl. on assigned portfolio) expressed as a % of assets on book
72.2 78.2 82.9 90.6
18.317.720.617.817.0
2.12.73.3
4.05.0
31-Dec-14
120.9 9.9
30-Sep-14
112.7 9.4
30-Jun-14
111.2 9.1
31-Mar-14
102.8 8.8
31-Dec-13
99.1
68.3
8.9
Capital Market Lending
SME Loan Against Property*
SME CE/CV Finance
SME Working Capital
2.59%2.47%
2.27%
1.90%1.62%
2.02%1.89%
1.12%1.17%
1.70%
1.35%
0.93%
0.99%
0.63%0.46%
0.65%
31-Dec-14
1.28%
1.67%
30-Sep-14 30-Jun-14 31-Mar-14
0.70%
31-Dec-13
1.09%
Net NPAs 180 day basis
Gross NPAs 180 day basis
Net NPAs 90 day basis
Gross NPAs 90 day basis
Borrowing programme supported by superior ratings
NIM stable and at healthy level
Additionally obtained Long Term rating of ‘CARE AA-’ [₹14,000 mn]
Rating Type Rating Agency Amt. (₹ mn)
Commercial Paper [ICRA] A1+ ICRA 27,000
ST Debt [ICRA] A1+ ICRA 10,000
ST Bank Loans [ICRA] A1+ ICRA 6,000
LT Debt [ICRA] AA- (stable) ICRA 34,000
LT Bank Loans [ICRA] AA- (stable) ICRA 114,000
Pref. Shares [ICRA] A+ (stable) ICRA 1,250
Market-Linked Deb. ICRA pp-MLD AA- ICRA 1,000
Tier-2 Sub. Debt IND AA- (stable) Ind-Ra 7,500
Commercial Paper IND A1+ Ind-Ra 30,000
ST Bank Loans IND A1+ Ind-Ra 30,000
LT Debt IND AA - (stable) Ind-Ra 15,000
LT Bank Loans IND AA - (stable) Ind-Ra 100,000
4.92%4.91%4.72%4.70%4.66%
2.56%2.33%2.36%
2.56%2.10%
Q2FY15 Q3FY15 Q4FY14 Q1FY15 Q3FY14
Opex/ ANR NIM**
15
Retail Broking – Religare Securities & Religare Commodities Business Overview
A formidable retail broking platform with
extensive distribution capabilities
Market share of
1.3% in equities and
3.4% in commodities
10% of REL’s
consolidated revenue
(q.e. 31-Dec-2014)
Equity Broking
Commodity
Broking
Currency Broking
Increase
Distribution Network productivity
Generate Superior
ROE
85%
13% 2%
Revenue Split – Q3FY15
Equities Commodities Currencies
Business Highlights
Strategic Priorities
Offerings Business Mix
16
• One of India’s largest retail broking
networks
• Increasing penetration in
Commodities broking – total client
base over 189,000
• Research capabilities recognized;
Senior Analyst received ‘India’s Best
Market Analyst- Commodities
Technicals’ Award at Zee India’s best
Market Analyst Awards 2013
• Winner of ‘Best Commodity Broker’
and ‘Best Investor Education &
Category Enhancement – Currency
Broker’ at the Bloomberg UTV
Financial Leadership Awards
Key Highlights Further concentration of equity market volumes in F&O
Retail Broking Focus on client acquisition and online initiatives
333
935
292
995
313
1,015
260
940
270
950
Equity market share stable QOQ; Commodities market share range-bound
(%)
(ADTO# - ₹ bn)
Focus on distribution network productivity
(Nos.)
Business Update
Continuing to see traction in online as well
as mobile channels
Focus on tightening risk management and
controls to safeguard the business against
adverse outcomes from volatility
Actions taken to increase non-brokerage &
fee-based income
#Average Daily Turnover. Source: NSE, BSE *Methodology aligned with market practices; past data restated accordingly
1,410 1,6161,713
3,1692,806
227232 252
207
203
232
Q1 FY15
2,464
525
226
Q4 FY14
2,086
332
138
Q3 FY15
3,836
470
197
Q2 FY15
3,508
499
Q3 FY14
1,871
330
131
Equities - Futures
Equities - Options
Equities - Cash
Commodities - Futures
1.31.31.7
1.51.9
3.43.8
3.23.23.2
Q3 FY15 Q2 FY15 Q1 FY15 Q4 FY14 Q3 FY14
Market Share - Commodities
Market Share - Equities *
1,444 1,391 1,359 1,339 1,327
203 201 191 195 193
30-Dec-14
1,520
30-Sep-14
1,534
30-Jun-14
1,550
31-Mar-14
1,592
31-Dec-13
1,647
Franchisees Own Branches
Key value proposition
of Simplified Wealth Solutions
enabled by tripod delivery model
17
Wealth Management – Religare Wealth Management Business Overview
An open architecture platform targeting
growing affluence
“Most Exciting Wealth
Management Model” globally, Private Bankers
International - 2009
AUM of
₹34.6 bn.
Customer base of
over 4,500
(as of 31-Dec-2014)
Enhance Presence
and Reach
Strengthen
Capabilities
Increase Wallet Share
Recognition
Business Highlights
Strategic Priorities
Offerings
18
Key value proposition of
‘Simplified Wealth Solutions’ for
the customers
Seen as trusted advisors to
clients, enabled by our tripod
delivery model
Active advisory calls helping
clients position portfolios to gain
from high-impact events
Expanding product solutions to
enhance ability to win clients
across the group
Size and scale aligned to market
Focus on Relationship Manager
productivity
Key Highlights Client Base
Relationship Manager productivity Business update
4,492
4,972
4,687 4,662 4,631
₹ mn.
AUM
Religare Wealth Management Differentiating through a focused idea-driven approach
Implementing a more focused idea-driven
approach in positioning products to clients,
resulting in significant traction in core
products like Equity Mutual Funds, PMS and
Alternative Investments
Efforts at increasing share of client wallet
through Advisory approach and higher level of
engagement paying off
(₹ bn)
4,728 4,678 4,619 4,627 4,553
30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 31-Dec-14
No. of Clients
29.6 30.131.8 33.3 34.6
30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 31-Dec-14
Total AUM
617 614691 680
736
30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 31-Dec-14
AUM per RM
RWM became a wholly owned subsidiary of RSL on 27-Nov-2013
Capital Markets – Religare Capital Markets Business Overview
Asia-focussed
Institutional Equities and Investment Banking Platform
India IE cash market
share of 1.4%
Empanelled with over
474 clients globally
(as of/q.e. 31-Dec-2014)
Increase Market Share
Attain Profitability Business Highlights
Strategic Priorities
19
RCML has been deconsolidated from REL w.e.f. 01-Oct-2011
Religare Capital Markets Creating a sustainable platform
Intense focus on investments in growth areas and
resource building across the India and international
platforms
International business continues to expand reach
through partnerships with regional securities and
advisory firms: Memorandum of Understanding
executed with FSG Capital in Philippines; discussion
underway with firms in Indonesia and Thailand
In India, focus on converting the robust investment
banking pipeline and enhancing capabilities in Futures
& Options to drive growth in the coming quarters
IBD update – deals completed
Book-running lead manager on ₹3.5 billion (USD 56
mn.) IPO of Monte Carlo Fashions Limited
Sole Arranger of Tranche 1 of ₹1.25 billion (USD 20
mn.) Non-Convertible Debenture issue for North Star
Apartments Pvt. Ltd.
Financial Advisor on the 60% stake sale of StreetSine
Technology Group to Singapore Press Holdings
Business Update
Headcount
Client empanelment
Headcount as of 31-Dec-2014: 96
20
*In compliance with the requirements of the Securities and Futures Commission (Hong Kong) and the Monetary Authority of Singapore, clients that were inactive for a period of 18 months have been excluded from the list of clients starting 31-Dec-2013.
475 481425
492 474
30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 31-Dec-14
No. of Institutional Empanelments*
Support 26%
Investment Banking
21%
Institutional Equities
53%
Domestic Funds
Offshore Funds
Portfolio Management
Services
21
India Asset Management – Religare Invesco Asset Management Business Overview
Entering the next phase of growth
Q3FY15 Average
AUM of ₹198 bn.
Profitable AUM Growth
AUM Split – Q3FY15
Business Highlights
Strategic Priorities
Offerings Business Mix
91%
7% 2%
Domestic MF
Offshore
PMS
22
Religare Invesco Asset Management Company Entering the next phase of growth with Invesco’s induction as JV partner
Invesco inducted as a strategic partner with 49% equity in
the India Asset Management business
Invesco is one of the leading global asset managers with
AUM of USD 792.4 bn. as on 31-Dec-2014 and serving
clients in more than 150 countries
Partnership allows Invesco to participate in the high-
potential Indian market with local manufacturing capability
and track record
Religare Invesco gains access to Invesco’s global
distribution platform and best practices
Long term outlook remains strong: AUM to GDP ratio of
only 8% in India compared to 114% in the US and 84% in
the UK
Participating in industry-wide inflows into equity schemes,
based on strong investment performance over the last five
years
In debt schemes, witnessing a gradual shift to long duration
products, which was further bolstered by the cut in the
policy rate in January 2015
Key Highlights Industry-wide average AUM
Religare Invesco mutual fund average AUM grew 12% QOQ
95% 94% 95% 94% 95%
161 137 145 177 198 Avg . AUM ₹ bn.
(₹ bn.)
8,765 9,051 9,872 10,597 11,062
Q2FY15 Q1FY15 Q4FY14 Q3FY14 Q3FY15
Avg. Industry AUM
89% 92% 90% 91%
30-Sep-14
10%
30-Jun-14
8%
31-Mar-14
11%
31-Dec-13
95%
5%
31-Dec-14
9%
Avg. Debt AUM Avg. Equity AUM
Source: AMFI, Company Analysis
23
Global Asset Management – Religare Global Asset Management Business Overview
Building a multi-boutique Alternative
Asset Manager Key
Affiliates
AUM of
approx. $20 bn.
(as of 31-Dec-2014)
AUM Growth in
existing affiliates
Launch of organic affiliates Business
Highlights Strategic Priorities
24
Religare Global Asset Management Strategy rollout well underway through marquee acquisitions, supplemented by organic initiatives
~ USD 4.3 billion
Private Equity Fund of Funds and Direct Investment funds
Investment track record in developed markets and emerging markets
Offices in the San Francisco Bay Area, London and Hong Kong
Raised over USD 1.2 billion in 2013-14 despite challenging market conditions
Planning to launch new product lines
~ USD 14.9 billion
Secondary Private Equity (PE)
Secondary Real Estate (RE)
Headquartered in Simsbury (Connecticut); offices in Boston, London and; planning to set up office in Hong Kong
Recognized as “North American Secondary Firm of the Year” for 2009, 2010 and 2011 by PEI
RE Fund VI raised USD 700 million in 2010-11
~ USD 0.5 billion
Listed healthcare business trust (similar to REIT), with a pan-Asia investment mandate
Trust sponsored by Fortis Healthcare Limited
Offices in Singapore and India
First organic affiliate of RGAM: Trustee Manager of Trust incubated and owned by RGAM
High growth potential due to natural deal flow provided by Fortis Healthcare’s pan-Asia operations
AUM
Products
Presence
Key Highlights
~ USD 0.1 billion
Asia-focused healthcare fund
Will invest across South-east Asia and South Asia
Offices in Singapore and India
Organic affiliate seeded by RGAM
First close of Asia fund at USD 107 million
Planning to launch more funds in future
25
Health Insurance – Religare Health Insurance Business Overview
Positioned to capture
significant Group Synergies
Retail & Group Health Plans
Retail & Group Accident Plans
International Travel Plan
GWP of
₹673 mn. in Q3FY15
4,195 hospitals in
provider network
(as of 31-Dec-2014)
Grow GWP with
efficient use of
Capital
‘Rising Star Insurer in Health Insurance’
Award, Indian Insurance Awards 2014
Recognition
Business Highlights
Strategic Priorities
Offerings
26
Performance of standalone health insurers
* Health & Personal Accident only Source: Industry Reports
Religare Health Insurance Rapidly achieving scale
Key Highlights
Fourth standalone health insurer to be set up in India
Equity participation of 5% each by Union Bank of India and
Corporation Bank
Pan-India coverage through 46 offices and 1,350+ employees
Multi-channel distribution strategy through Agency, Brokers,
Corporate Agents, Online and Bancassurance
Gross Written Premium (GWP) of ₹673 mn. in Q3FY15
Winner of the ‘Best Health Insurance Company’ at the ABP News
– Banking, Financial Services & Insurance Awards 2015’
Gross written premium
Consistently expanding the Hospital Network
320422
533 521673
Q2FY15 Q1FY15 Q4FY14 Q3FY14 Q3FY15
GWP
2,7563,100
3,6104,075 4,195
Q2FY15 Q1FY15 Q4FY14 Q3FY14 Q3FY15
No. of network hospitals PSU Private Stand-
alone
No. of companies 4 17 5
No. of years in existence 39 12 5
GWP* – FY13 (₹ bn.) 98.7 53.5 17.2
GWP* – FY14 (₹ bn.) 112.4 59.0 22.4
Incremental market share 56.2% 22.4% 21.4%
(₹ mn)
27
Life Insurance – AEGON Religare Life Insurance Business Overview
Pioneer in Online Distribution
Term Plans
Endowment Plans
Unit-Linked Plans
Pension Plans
Over 358,000 lives covered
₹5.8 bn. capital
invested by REL
(as of 31-Dec-2014)
Efficient use of
Capital
Achieve
Breakeven
E-Business Leader Award at the Indian Insurance Awards 2013 and 2014
Recognition
Business Highlights
Strategic Priorities
Offerings
28
• Multi-channel distribution in place
including agency, direct to
consumer, e-sales, corporate
agents and brokers
• Recognized for pioneering efforts
in online distribution – particularly
for focus on protection through
the iTerm product
• Significant investments in a robust
technology infrastructure to
ensure a differentiated consumer
experience as well as aiding
channel productivity
• Well recognized brand popular for
its campaign focusing on prevalent
under-insurance and the need to
have higher levels of protection
• Rationalisation efforts over the
past year proving extremely
beneficial and enabling
conservation of capital
Key Highlights Steadily growing customer base Business Update
Premium Income split Share Capital
251
227
213 190
325
451 682
422 470
530 11.4 11.4 10.8 10.0
(₹ mn.)
2,3
26
1,7
64
2,1
77
2,2
62
2,0
96
2,2
25
(000s)
(₹ bn)
Launched two new products in December
2014: ‘i-Maximize Insurance Plan’ (online
unit linked product) and ‘Premier
Endowment Insurance Plan’ (offline
traditional participating product) to further
consolidate position as innovator
Both products received well by the market
and delivering per expectations 000s of Policy Issued
30.4 13.5 8.6 12.1 15.2
301 328 336 346 358
Q2 FY15 Q1 FY15 Q4 FY14 Q3 FY14 Q3 FY15
No. of Customers
632206
393 469
1,284
487
812 782
Q2 FY15
1,208 3
Q1 FY15
694 1
Q4 FY14
1,922 6
Q3 FY14
1,011
333
675
3
Q3 FY15
1,253 2
First year premium Renewal Single
12.7 13.1 13.1 13.1
30-Sep-14
13.1 0.0
30-Jun-14
13.1 0.0
31-Mar-14
13.1
0.4
31-Dec-13
12.7
12.4
0.3
31-Dec-14
13.1 0.0
Existing Capital Fresh Capital
Life Insurance – AEGON Religare Life Insurance Acknowledged leader in use of technology
Religare Enterprises Limited
D3, P3B, District Centre, Saket, New Delhi 110017