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Investo r Presentat ion
Febru ary 7, 2014
Results for the quarter ended December 31, 2013
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Slide 2
Overview - Strong Fundamentals
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Slide
1.0
2.7
1.81.7
Q3
FY13
Q4
FY13
Q2
FY14
Q3
FY14
118.2
120.1
123.7
125.6
481
489
504
511
Dec-12 Mar-13 Sep-13 Dec-13
17.216.9
18.718.9
Q3
FY13
Q4
FY13
Q2
FY14
Q3
FY14
3
Key Performance Highlights
Total Assets
Profit After Tax Earnings Per Share
Capital Adequacy
Total Income
Networth and Book value Per Share
(Rs. Billion) (Rs. Billion) (%)
(Rs. Billion) (Rs. Billion)
(Rs.)
20.4%
17.0% 17.1% 16.6%
Dec-12 Mar-13 Sep-13 Dec-13
(Rs.)
* Based on standalone financials
4.1
10.8
7.46.8
Q3
FY13
Q4
FY13
Q2
FY14
Q3
FY14
397.5
405.9
417.2
440.5
Dec-12 Mar-13 Sep-13 Dec-13
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Slide
Net debt - equity ratio: 1.83 CRISIL A1+
Highest credi t rat ing for sh or t
term bor rowing p rogram
ICRA A1+
Highest credi t rat ing for sh or t
term bor rowing p rogram
CARE AAA
Highest credi t rat ing for long
term bor rowing p rogram
4
Key Performance Highlights
Well capitalized to address future growth opportunities
1.65 1.70 1.80 1.83
Dec-12 Mar-13 Sep-13 Dec-13
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Slide 5
Reliance L ife Insu rance
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Slide 6
Qualitative Highlights - Reliance Life Insurance
As on Dec 31, 2013, Reliance Life was positioned
amongst Top 5 private sector insurers (as per Ind. WRP)
New Business Premium grew by 18% in Q3 FY14
Ach ieved high est market sh are gain in the industry
(from 4% in FY13 to 8% in 9m FY14)
Average tick et si ze was ov er Rs. 20,400 (+34%)
Solvency margin rose to 493%
Reduction in surrender profit; increase in business profit
Continued emphasis on Distribution initiatives (incl.proprietary channels)
Nationwide distribution network with over 900 offices
Focus on promoting a solution based selling approach
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9.3
12.7
9.1
10.8
9.7
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
6.0
8.1
4.0
5.8 5.7
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
402
2,902
565
1,356
272
Q3FY13
Q4FY13*
Q1FY14
Q2FY14*
Q3FY14
3.4
4.7
5.1 5.1
4.0
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
7
Renewal Premium
Business Mix (Individual)
Total Premium (net of reinsurance)
Profit Before Tax
New Business Premium
(Rs. Billion) (Rs. Billion) (Rs. Billion)
(Rs. Million)
Financial Performance - Reliance Life Insurance
(%)
25% 24% 20%14% 12%
75%76%
80% 86% 88%
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
U LI P T ra di ti on al
2.9
4.0
4.8 4.8
3.9
2.63.0
2.42.8 2.8
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
WRP Individual WRP
Weighted Received Premium
(Rs. Billion)
* Includes policyholders surplus transferred toshareholders account
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15,300
16,500 17,100
19,600 20,400
Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14
193.7
181.9180.1
175.3
180.7
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
No. of individual policies sold
Private Sector Market Share
Average Ticket Size (approx.)
Funds under Management
(Rs. Billion)
(in 000s)
(%)
Financial Performance - Reliance Life Insurance
8
200
219
156149 151
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
4.7%3.9%
10.4%
7.0%
5.9%
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
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Reliance General Insu rance
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Qualitative Highlights - Reliance General Insurance
As on Dec 31, 2013, Reliance General Insurance was
ranked amongst the Top 5 private sector insurers
No. of policies sold rose to 0.9 million in Q3 (+26%)
Manual co ver-notes reduced from 15% to 9%
Direct sales contributed 21% of total premium
(14% in Q3 FY13)
Combined ratio at 125%
Provis ion due to 3rdparty mo tor cla ims reserves
(Rs. 198 m il l ion) and excep t ional pro visio nin g for
Motor Decline Risk pool (Rs. 135 million)
Investment book grew to Rs. 37 billion (+15%)
Intermediaries rose to over 14,400 intermediaries
Highest no . of new agents created in this year
among st pr ivate sector insurers
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156
170
102
162
106
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
112%
115%
113%
120%
125%
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
*
5.0 4.9
7.1
5.8 6.0
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
741
840
922
822
932
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Motor
63%
Health
16%
Fire &
Engg.
9%
Marine
1%
Others
11%
11
Profit Before Tax Combined Ratio
Business mix
Gross Written Premium
(Rs. Billion) (Rs. Million)
Financial Performance - Reliance General Insurance
(%)
(Rs. Billion)
Investment Book No. of policies issued
(in 000s)
32.6 32.5
34.3
36.737.3
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
* Includ es one-time negative impact of Motor
Decline Risk pool
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Reliance Commercial Finance
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Qualitative Highlights - Reliance Commercial Finance
Amongst the leading lenders in the Indian
NBFC sector
Continued focus on asset-backed lending
and productive asset creation
Key focus areas: Mortgage, SME and
Commercial Vehicle finance
Securitised loans of Rs. 2 billion in Q3
NIM improved to 5.6% in Q3 FY14 driven by
higher yields and lower funding costs
Caters to over 71,000 customers
Geographical presence in 37 locations
across the country
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Segment
Home Loan
LAP
Commercial Vehicles
SME
Focus Area for growth
Self Employed / Affordable Housing
in Tier I & II cities
Self employed / SMEs
Small operators / FTBs /
Agriculturists
Cluster-based growth approach
Avg.
Yield
13%
16%
16%
15%
Share
in total
16%
31%
12%
30%
LTV
55%
42%
89%
65%
Segment details - Reliance Commercial Finance
0
50
100
150
200
0
10
20
30
40
Home Loan LAP CV SME
Average Ticket Size Average Tenure (months)
Rs.
inmillion
Tenure
inmonths
(As on Dec 2013)
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5.35.5
5.4 5.45.6
0.8
1.2
0.8 0.9 1.0
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Total Income Profit Before Tax
15
Disbursements
Yield and Net Interest Margin Cost-to-income ratio
Gross NPLs
159.5 163.8
158.7 161.0 164.1
137.6 136.5 135.6 132.0 136.9
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
AUM Total Loans
Total Income and Profit Before Tax
AUM and Total Loan Portfolio
(Rs. Billion) (Rs. Billion)
(Rs. Billion) (%)
Financial Performance - Reliance Commercial Finance
(%)
(%)
23.1 24.5
16.5
20.1
24.2
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
13.4% 13.3%15.2%
16.5% 16.0%
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
14.2%
15.0% 15.4% 15.1% 15.4%
4.2%4.9% 5.0% 5.3%
5.6%
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
Yield NIM
1.9%1.7%
2.3% 2.3% 2.4%
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
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Reliance Cap ital Asset Management
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Amongst the Top 2 Mutual Funds in India
Continues to focus on improving realisations in
debt and equity segments
Leading AMC in garnering AUMs from beyond Top
15 cities category (18% share in total AUMs)
Retail debt forms 36% of overall debt AUMs
Retail Gold Fund maintained 25% market share in
the Gold Fund category
Wide distribution network - over 170 customer
touch points and 42,000 empanelled distributors
17
Qualitative Highlights - Reliance Mutual Fund
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583
1,151
771
667
843
Q3
FY13
Q4
FY13
Q1
FY14
Q2
FY14
Q3
FY14
2,276
1,949
2,116
1,869 1,879
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q2FY14
619.9 673.9 728.5 709.6
787.4
286.5 271.9
249.3 222.9237.4
906.4 945.8 977.7 932.5
1,024.9
Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14
Debt Equity
1,647.8
1,731.3
1,788.2
1,760.9
1,878.3
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
18
Average Mutual Fund AUMs
Profit Before TaxTotal Income
Average Assets under Management
(Rs. Billion) (Rs. Billion)
(Rs. Million)
Financial Performance - RCAM
(Rs. Million)
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Brok ing and Dist r ibu t ion bus inesses
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Qualitative Highlights - Broking and Distribution
Broking business consists of :
Reliance Securities (2ndlargest broker in
the retail segment), and Quant Securities
that focuses on the wholesale clientele
One of the largest private sector partners for
Western Union Money Transfer in India
Pan India presence with over 6,600 outlets
Profitability remained muted due to decrease
in broking volumes in the equities as well as
the commodities segments
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356
415
300
352 357
-4
58
-8 -8 -28
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Total Income Profit Before Tax
8.7
10.111.1
14.0
11.6
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13
21
Average Daily Turnover
(Stock exchanges and Commodities)
Equity and Commodity
Broking Accounts
Broking
Total income & Profit Before Tax(Rs. Million)
Financial Performance - Broking & Distribution
(Rs. Billion)(in 000s)
Wealth Management AUM
(Rs. Billion)
631
788
538 504 524
100 111
4 3 -44
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Total Income Profit Before Tax
614 627 674
760719
Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14
Money Transfer Transactions
(In 000s)
Distribution
Total Income & Profit Before Tax(Rs. Million)
709 715 719 724 727
39 40 40 41 42
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Equity Commodity
22.826.1 25.2
22.1
17.7
8.3 8.2 8.1
3.2 3.5
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Stock exchanges Commodities
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Other Bus inesses
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Other Businesses - Reliance Asset Reconstruction
Reliance ARC is in the business of acquisition, management and
resolution of distressed debt / assets
The business also focuses on bilateral deals with banks and works with
the management of the NPA company for facilitating time bound
solutions
As on December 31, 2013, the assets under management rose to Rs. 7
billion (Rs. 732 million as on September 30, 2013)
Companys own Investment in NPAs acquired rose from Rs. 463 millionas on Sept 30, 2013, to Rs. 898 million
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Manages a private equity fund, the Reliance Alternative Investments Fund -
Private Equity Scheme I - that makes late stage investments in mid-sized
Indian companies
The Fund is fully invested in 7 companies
Funds existing investments are closely monitored on an ongoing basis,
and continue to perform at or above expectations
The portfolio has been valued at 1.41 times cost as on March 31, 2013
The Fund will start focusing on exits from 2014 onwards
Other Businesses - Reliance Equity Advisors (REAL)
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Slide 25
Promoters54.1%Foreign
Investors
21.6%
DIs / Banks /Mutual funds
5.3%
Indian public19.0%
Shareholding Pattern
(As on December 31, 2013)
1.1 million retail shareholders
Constituent of CNX Nifty Junior and MSCI India
Traded in futures & options segment
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Thank you
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Slide 27
Annexure
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Slide
Consolidated Financials
(Rs. Million) Q3 FY14 Q3 FY13 Change(y-o-y)
Q2 FY14 Change(q-o-q)
FY 2013
Interest Income 9,551 8,345 14% 9,065 5% 32,067
Capital Gains / Dividend 350 729 (52)% 793 (56)% 11,588
Premium Earned 5,994 5,079 18% 5,832 3% 20,733
Mgmt. & Advisory Fee 1,702 2,063 (17)% 1,783 (5)% 6,416
Brokerage & Comm. 636 503 27% 573 11% 2,208
Other Income 658 440 50% 643 2% 2,174
Total Income 18,892 17,158 10% 18,690 1% 75,186
Interest & Fin. Charges 6,285 5,956 6% 6,268 - 23,430
Other Expenses 10,495 9,789 7% 10,783 (3)% 43,453
Total Expenses 16,780 15,745 7% 17,051 (2)% 66,883
Profit before tax 2,112 1,413 49% 1,639 29% 8,303
Net profit after tax 1,661 1,008 65% 1,808 (8)% 8,119
28
Prof i t & Loss statement
Fi i l R li Lif I
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Slide
Financials - Reliance Life Insurance
Prof i t & Loss statement
(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)
Q2 FY14Change(q-o-q)
FY 2013
First year premium 3,862 2,860 35% 4,820 (20%) 1,188
Single premium 150 531 (72)% 267 (44)% 188
Total New business
premium4,012 3,391 18% 5,087 (21)% 1,377
Renewal Premium 5,747 5,963 (4)% 5,782 (1)% 2,669
Total premium
(net of reinsurance)
9,713 9,302 4% 10,769 (10)% 4,015
Profit before tax 272 402 (32)% 1,356* (80)% 3,804*
Total funds under
management180,727 193,659 (7)% 175,250 3% 181,894
29
* Includes policyholders surplus transferred to shareholders account
Fi i l R li G l I
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Slide
Financials - Reliance General Insurance
Prof i t & Loss statement
30
(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)
Q2 FY14Change(q-o-q)
FY 2013
Gross Written Premium 5,994 4,963 21% 5,832 3% 20,362
Profit / (loss) before tax 106 156 (32)% 162 (35)% (928)
Investment book 37,318 32,550 15% 36,705 2% 32,525
Combined ratio 125% 112% - 120% - 121%
No. of policies issued
(in million)
0.9 0.7 26% 0.8 13% 2.9
Fi i l R li C i l Fi
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Slide
Financials - Reliance Commercial Finance
Prof i t & Loss statement
31
(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)
Q2 FY14Change(q-o-q)
FY 2013
Disbursements 24,171 23,124 5% 20,141 20% 87,446
Net Interest Income 1,796 1,446 24% 1,601 12% 5,901
Total Income 5,625 5,331 6% 5,364 5% 21,168
Interest expenses 3,274 3,553 (8)% 3,327 (2)% 13,778
Other expenses 900 716 26% 883 2% 3,115
Provisions 405 221 83% 245 65% 855
Profit before tax 1,046 841 24% 908 15% 3,420
Fi i l RCAM
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Slide
Financials - RCAM
Prof i t & Loss statement
(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)
Q2 FY14Change(q-o-q)
FY 2013
Income 1,879 2,276 (17)% 1,869 1% 7,346
Expenses 1,036 1,693 (39)% 1,203 (14)% 4,450
Profit before tax 843 583 45% 667 26% 2,896
(Rs. Billion) Dec 31, 2013 Sept 30, 2013 Dec 31, 2012 Mar 31, 2013
Debt 764.0 684.0 589.5 644.7
Equity 237.4 222.9 286.5 271.9
Gold 23.5 25.7 30.4 29.3
Managed Accounts 14.5 14.4 15.9 14.7
Pension Funds 791.4 761.3 667.5 707.6
Offshore Funds 47.4 52.7 58.1 63.2
Total AAUM 1,878.3 1,760.9 1,647.8 1,731.3
32
Fi i l B ki d Di t ib ti
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Slide
Financials - Broking and Distribution
Prof i t & Loss - Broking
33
(Rs. Million) Q3 FY14 Q3 FY13Change(y-o-y)
Q2 FY14Change(q-o-q)
FY 2013
Total Income 524 631 (17)% 504 4% 2,581
Total expenses 568 532 7% 501 13% 2,206
Profit before tax (44) 100 - 3 - 375
Prof i t & Loss - Distr ibu t ion
(Rs. Million) Q3 FY14 Q3 FY13Change
(y-o-y)
Q2 FY14Change
(q-o-q)
FY 2013
Total Income 357 356 - 352 1% 1,200
Total expenses 385 360 7% 360 7% 1,127
Profit before tax (28) (4) - (8) - 73
Human Capital
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~17,500 employees
~80% in Customer Facing
roles
Young workforce
Post Graduates and
Professionals form over 25%
of the total workforce
~2,000 women employees
Human Capital
Young & vibrant workforce average age of 33 years
Qualification profile
MBAs /CAs12%
PostGraduates
14%
Graduatesand Others
74%
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