Aditya Birla Capital Q2 FY25 Financial Results PDF

Ref: No. ABCL/SD/MUM/2024-25/OCTOBER/20 30 October 2024 BSE Limited National Stock Exchange of India Ltd th Phiroze Jeejeebhoy Towers,...

Ref: No. ABCL/SD/MUM/2024-25/OCTOBER/20 30 October 2024 BSE Limited National Stock Exchange of India Ltd th Phiroze Jeejeebhoy Towers, Exchange Plaza, 5 Floor, Dalal Street, Plot. C/1, Mumbai 400 001 G-Block, Bandra-Kurla Complex, Bandra (East), Scrip Code: 540691 Mumbai 400 051 Scrip ID: ABCAPITAL Symbol: ABCAPITAL Dear Sir/ Madam, Sub: Intimation under Regulation 30 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) Pursuant to Regulation 30 of the SEBI Listing Regulations, please find attached a presentation on the Unaudited Financial Results of the Company for the quarter and half year ended 30 September 2024 which will be presented to the investors and also posted on our website https://www.adityabirlacapital.com/investor-relations/quarterly-results. The details of conference call scheduled on Wednesday, 30 October 2024 at 16:30 HRS (IST) have already been intimated vide our letter dated 18 October 2024. The above is for your information, records and dissemination please. Thanking you, Yours sincerely, For Aditya Birla Capital Limited SANTOSH Digitally signed by SANTOSH GURUDAS GURUDAS HALDANKA HALDANKAR Date: 2024.10.30 R 14:25:55 +05'30' Santosh Haldankar Company Secretary & Compliance Officer Encl.: As above Cc: Luxembourg Stock Exchange Citi Bank N.A. Market & Surveillance Dept., Custodial Services P.O. Box 165, L-2011 Luxembourg, FIFC, 11th Floor, C-54 & 55, G Block Grand Duchy of Luxembourg Bandra Kurla Complex Bandra (East), Mumbai 400 051 Citi Bank N.A. Listing Agent Depositary Receipt Services Banque Internationale à Luxembourg SA 388 Greenwich Street 69 route d'Esch 14th Floor, New York, L - 2953 Luxembourg NY 10013 Grand Duchy of Luxembourg Q2 FY25 FINANCIAL RESULTS INVESTOR PRESENTATION Oct 30, 2024 A Leading Financial Services Conglomerate 01 Aditya Birla Capital: Diversified Financial Services Platform Promoter & Grasim Industries Promoter Group 52.6% 16.4% Aditya Birla Listed Capital Limited Listed 100% 100% 51% 45% 46% Aditya Birla Finance Aditya Birla Housing Aditya Birla Sun Life Aditya Birla Sun Life Aditya Birla Health Finance 100% Insurance 51% AMC Insurance Non-Bank Financial Company Housing Finance Life Insurance Asset Management Standalone Health Company Insurance Listed 74% 100% Aditya Birla Money Aditya Birla ARC 74% Stock & Securities Stressed asset platform broking Above is not intended to show the complete organizational structure and entities therein. It is intended to describe the key businesses of Aditya Birla Capital. 02 Shareholding at Sep 30, 2024 Highlights for Q2 FY25 03 Financial performance Consolidated PAT1 at ` 1,001 Cr (↑ 42% y-o-y & ↑ 32% q-o-q) Consolidated Revenue1,2 at ` 12,007 Cr (↑ 36% y-o-y) Total lending3 portfolio of ` 1,37,946 crore (↑ 27% y-o-y & ↑ 8% q-o-q) Total AUM4 of ` 5,01,152 Cr (↑ 24% y-o-y & ↑ 9% q-o-q) Gross premium5 of ` 10,828 Cr (↑ 29% y-o-y) in H1 FY25 1. Includes gain of ` 203 crore (` 167 crore net of tax) on sale of ABIBL 2. Consolidated segment revenue; for Ind AS statutory reporting purpose 4 Asset management, wellness business and health insurance are not consolidated and included under equity accounting 3. For NBFC and HFC 4. Asset under management of AMC, Life and Health Insurance 5. For Life and Health Insurance Strong growth momentum across businesses Life Health NBFC Housing Asset Management Insurance Insurance Loan Book AUM Growth Premium Growth6 ` 1,14,710 crore1 ` 23,236 crore1 ` 3,83,309 crore ` 1,80,658 crore Individual FYP Gross Premium 23 y-o-y 51% y-o-y Domestic AAUM3 Equity AAUM3 33% y-o-y 39% y-o-y 7% q-o-q 14% q-o-q 23% y-o-y 39% y-o-y Profitability2 Profitability2 Margin & Combined Ratio6 PBT ` 844 crore PBT ` 104 crore Operating profit Profit after tax Combined ratio Net VNB margin 15 y-o-y 7 y-o-y ` 239 crore ` 242 crore 113% 7.4% 15.56% RoE 32% y-o-y 36% y-o-y (H1 FY24: 119%) 11.54% RoE Credit quality2 (GS2 & GS3) Quality Persistency & Market Share6 4.24% 2.22% Equity AAUM Mix3 Monthly SIP 13th month 88% flows4 Market share7 47.1% 1% y-o-y 100 bps y-o-y 218 bps y-o-y 11.9% ` 1,425 crore5 61st month 67% 21 bps q-o-q 42 bps q-o-q 525 bps y-o-y 47% y-o-y 7% y-o-y 123 bps y-o-y 05 1. As of Sep 30, 2024 2. For Q2 FY25. 3. Average assets under management for Q2 FY25 4. Includes STP 5. For Sep 2024 6. For H1 FY25 7. Among SAHI players Consolidated Revenue and PAT Consolidated Revenue and PAT Business-wise Profitability Revenue1 36% y-o-y Businesses (` crore) Q2 FY24 Q2 FY25 Y-o-Y 12,007 NBFC 736 844 15% 8,831 7,215 HFC 97 104 7% Asset Management 237 335 42% Q2 FY23 Q2 FY24 Q2 FY25 Life Insurance 42 44 4% Profit after tax Health Insurance (79) (65) 42% y-o-y Others2,3 81 343 1,001 Aggregate PBT 1,114 1,606 44% 705 488 Less: Provision for Taxes (343) (487) Less: Minority Interest (66) (118) Q2 FY23 Q2 FY24 Q2 FY25 Profit after tax 705 1,001 42% 1. Consolidated segment revenue; for Ind AS statutory reporting purpose Asset management, wellness business and health insurance are not consolidated and included under equity accounting 2. Includes General Insurance Broking, Stock & Securities, ARC Platform, standalone, Aditya Birla Capital Digital, other businesses and elimination 3. Includes gain of ` 203 crore (` 167 crore net of tax) on sale of ABIBL 06 Omni Channel Architecture... ABCD-D2C platform Robust & agile for customers Udyog Plus-B2B digital platforms platform for MSMEs B2D platform for channel partners One ABC 866 co-located branches Dedicated customer service locations across 238 locations managers for cross sell One Experience Channel 2 lakh+ channel Partner partners 1,470 branches across businesses …providing complete flexibility to customers to choose preferred channel of interaction 07 ABCD – Omnichannel D2C Platform Q2 FY25 - Key Feature Launches & Accolades 2.5Mn+ 1.2Mn+ 22+ App Customers1 VPAs1 Product Categories Pocket Insurance DigiGold Gifting Affordable coverage against Gift gold digitally to friends & everyday risks family Family Health Scan Gold Loan Selfie-based health scan now Easy, hassle-free, quick extended up to 5 members disbursals ABCD App won the Finest Fintech Solution award under ‘Best in Class User Friendly Interface’ category at Global Fintech Fest 2024 ABCD App won the ‘Best Payments Industry Newcomer, Best Payment Experience & Best Digital Payments App’ award at the 11th Payments Reloaded Summit InFiniTe (Fintech Engagement Platform) won the ‘Ecosystem Initiative of the Year’ at the Asian Banking & Finance Awards 2024 Omnichannel D2C Platform 1 – As on October 21, 2024 2 – Branch and Virtual engagement channels already live 3 – My Track: Value Added Services like Credit Score, Spend & Budget Analyzer, Financial Portfolio, Digital Health Assessment, Rewards & Loyalty and more. UDYOG PLUS: Addressing 360o needs of MSMEs Architecture Programs Financial Growth Solutions Solutions Business Lending Offline to Online Unsecured business loans discovery Pre-approved loans Account, HRMS & Supply Chain Payroll Software Financing Business Channel Finance Networking Vendor Finance Pre-approved programs Tax solutions & Insurance & Advisory Investment Solutions Travel Solutions Health insurance Life Insurance MF, Digi-gold, FD 16 lakh+ registrations, ~ ` 2,900 Cr + AUM, 25% contribution to unsecured business loans, 45% sourcing from ABG ecosystem 09 Aditya Birla Finance 01 0 Performance Highlights for Q2 FY25 Retail, SME AUM1 NII3 PBT GS2 & GS34 & HNI loans2 ₹ 74,911 crore ₹ 1,14,710 crore ₹ 1,711 crore ₹ 844 crore 4.24% (65% of AUM) ↑ 23% Y-o-Y ↑ 20% Y-o-Y ↑ 15% Y-o-Y ↓ 100 bps Y-o-Y ↑ 13% Y-o-Y ↑ 7% Q-o-Q ↑ 6% Q-o-Q ↑ 1% Q-o-Q ↓ 21 bps Q-o-Q 432 branches as of Sep’24 RoA of 2.34% in Q2 FY25 RoE of 15.56% in Q2 FY25 1Sep’24 AUM includes ₹ 443 crore of Direct Assignment (Off-Book) portfolio | 2Categorized basis customer segment | 3Includes fee income | 11 4As per financials Strong Growth in AUM… AUM (₹ crore) Sep’23 Jun’24 Sep’24 Sep’24 Mix Q-o-Q Y-o-Y - Unsecured business 9,460 10,546 11,020 10% 4% 16% - Secured business 36,129 47,557 52,207 45% 10% 45% Total Business loans 45,589 58,104 63,228 55% 9% 39% Personal & Consumer loans 19,326 16,130 15,793 14% -2% -18% Corporate / Mid-market 28,607 33,071 35,690 31% 8% 25% Total AUM 93,522 1,07,306 1,14,710 100% 7% 23% Disbursements (₹ crore) Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY25 Mix Q-o-Q Y-o-Y - Unsecured business 1,454 1,078 1,132 6% 5% -22% - Secured business 5,256 5,462 7,381 38% 35% 40% Total Business loans 6,710 6,539 8,513 44% 30% 27% Personal & Consumer loans 5,221 2,395 3,262 17% 36% -38% Corporate / Mid-market 4,546 4,508 7,547 39% 67% 66% Total Disbursements 16,477 13,443 19,322 100% 44% 17% …driven by business loans to SMEs 01 Note: Disbursements are non-LOC. 2 Sep’24 AUM includes ₹ 443 crore of Direct Assignment (Off-Book) portfolio Growth Momentum in Business Loans Personal & Consumer 18% y-o-y Secured business 45% y-o-y 19,326 52,207 CL - Others 3% LAS 47,557 11% 16,130 15,793 17% 3% 0.3% 2% 15% CL - BNPL TL / WCDL 36,129 22% 14% 22% PL LRD 5% 86% 97% 98% 5% 27% LAP 7% 56% 57% 53% Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-24 Unsecured business 16% y-o-y Corporate / Mid-market 25% y-o-y 33,071 35,690 10,546 11,020 TL / WCDL Business Loans 28,607 9,460 Structured Finance Supply Chain 53% 64% 81% 52% 79% 81% Construction Finance 41% AUM covered 3% 4% 1% under Central Govt. Project Finance 19% 20% 19% schemes (Sep’24) 21% 19% 19% 25% 24% 17% Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-24 01 3 Well Diversified Product Portfolio Segment Personal & Consumer Unsecured Business Secured Business Corporate / Mid-Market Presence Semi-urban Semi-urban Semi-urban / SME Clusters Top 6-7 Cities Sourcing DSA + Direct + Ecosystems DSA + Ecosystems DSA + Direct Relationship (Direct) ATS1 PL: ~ 1.8 Lac ; CL:~0.5 Lac ~ ₹ 9.9 Lac ~ ₹ 1.5 Crs ~ ₹ 67.7 Crs Salaried Professionals with Business owners & Self- Business owners & Self- Pedigreed Group Corporates / focus on emerging income employed professionals employed professionals Mid-market Cos in focus sectors / segment engaged in small/mid-sized engaged in small/mid-sized Cat A / A+ developers businesses businesses Products Personal Loans Business Loans Retail & SME LAP, LRD Capex/ WC Funding Consumer Loans Supply Chain Finance Small Ticket Secured & Micro LAP Structured Finance Check-out Financing B2B Digital Platform Working Capital Loans Developer Financing Co-branded Credit Card Business Overdraft Loan Against Securities Project Finance Cross-Sell Personal Loan Top Ups & Cross Sell, Insurance & Wealth Solutions to ABFL & ABC customer ecosystem Security 74% of loan book is Secured 1 ATS has been derived basis closing AUM to active customers, and represents an approximate figure as on Sep 30, 2024 01 4 Strong Digital Adoption in Customer Sourcing and Servicing Customer EMIs Collected Digital Service Email BOT Onboarding 91% Digitally 97% Interactions 93% Accuracy 91% Customer Customer Process Collections Acquisition Servicing Automation Fully agile tech stack for Inbound contact center Significant e-Nach & e- Re-payment hub activated digitally onboarding calls handled by Voice Contract penetration in with multiple digital customers bots Personal Loans payment channels for EMI collections LOS / LMS system Enabled self-service High accuracy email bot AI voice BOT for proactive leveraging CKYC / OKYC, channels with STP for in inbound mail and low risk bounce facial recognition, bureau service journeys categorization cases calling integration & e-contract Cross sell of personal Digital EMI collections STP for disbursals done Leveraging AI for risk- loans facilitated digitally digitally based collections calling 01 5 Underwriting Approach in Personal and Consumer Loans Bureau Score Buckets Underwriting Approach ❖ Utilization of Scorecard for better Customer Selection 2% 56% 5% ❖ Usage of Alternate Data in credit decisioning Customer Profile ❖ STP process for faster TAT 37% ❖ Usage of behavior based Predictive Modelling for upsell NTC 93% loans with credit score 700+ ❖ In house Business Rule engine for rapid roll out of program norms 01 6 Prudent Risk Management Practices… Sep’23 Jun’24 Sep’24 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 94.76% 88,774 95.55% 1,02,517 95.76% 1,09,365 Stage 2 2.61% 2,442 1.91% 2,051 1.74% 1,989 Stage 3 2.64% 2,469 2.54% 2,725 2.50% 2,851 Stage 2 and 3 5.24% 4,911 4.45% 4,775 4.24% 4,839 Total Loan book 100% 93,685 100% 1,07,292 100% 1,14,205 Stage 3 PCR 48.3% 49.5% 46.0% Sep’23 Jun’24 Sep’24 Segment Asset Quality GS 2 (%) GS 3 (%) GS3 PCR GS 2 (%) GS 3 (%) GS3 PCR GS 2 (%) GS 3 (%) GS3 PCR Personal & Consumer 2.1% 2.0% 81.9% 2.8% 3.2% 85.8% 2.6% 2.9% 83.4% Unsecured business 1.5% 2.7% 39.7% 1.8% 3.4% 35.5% 1.9% 3.8%* 36.1% Secured business 4.5% 2.2% 38.0% 2.7% 1.7% 37.9% 2.5% 2.0% 31.1% Corporate / Mid-market 0.9% 3.8% 45.6% 0.3% 3.1% 45.3% 0.3% 2.6% 49.1% Total 2.6% 2.6% 48.3% 1.9% 2.5% 49.5% 1.7% 2.5% 46.0% *Unsecured business – 57% Stage 3 book is secured under Govt. Guarantee Schemes, excluding which GS 3 is 1.6%. …leading to improvement in asset quality 01 Note: Loan book and ratios are as per financial statements 7 Well Matched ALM and Diversified Borrowing Mix Cumulative Outflows Cumulative Inflows 100% 100% Funding Mix 83% 86% 10% 3% 4% 10% 9% 9% 45% 40% 53% 51% 24% 26% 25% 26% 17% 19% 12% 14% 8% 10% 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 years > 5 years Sep’23 Sep’24 Term Loan NCD CP ECB CC/WCDL/Others Cumulative Surplus / (Gap) 32% 22% 10% 8% 13% 3% 0% Asset Liability Mix Long-term funding facilities rated AAA & Short-term funding facilities 39% 30% rated A1+ by CRISIL/ICRA / India Ratings / CARE Fixed Raised LT borrowing of ₹ 7,223 crore in Q2 FY25 Floating 70% (₹ 8,621 crore in Q2 FY24 and ₹ 9,013 crore in Q1 FY25) 61% Maintained comfortable Capital Adequacy (CRAR) at ~16.48% and Liability Asset Tier 1 ratio of 14.47% (Incl Equity) 01 Note: Liabilities with contractual maturity less than 1 year are considered as floating. 8 P&L and Key Ratios - Aditya Birla Finance Profit & Loss Statement (₹ crore) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Net Interest Income^ 6,296 1,520 1,709 1,711 2,953 3,420 Operating Expenses 1,957 437 508 531 874 1,039 Credit Provisioning 1,352 347 368 336 653 704 Profit Before Tax 2,987 736 833 844 1,427 1,677 Tax 766 188 212 216 363 428 Profit After Tax 2,221 548 621 629 1,064 1,250 Total Equity 15,244 13,254 15,863 16,975 13,254 16,975 Total Borrowings and Debt Securities 92,292 83,084 95,731 99,275 83,084 99,275 Key Ratios (in percent) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Average Yield^ 13.70 13.65 13.51 13.14 13.64 13.32 Interest Cost / Avg. Lending Book 6.80 6.78 6.95 6.85 6.71 6.90 Net Interest Margin^ 6.90 6.87 6.56 6.28 6.93 6.42 Opex / Avg. Lending Book 2.17 2.00 1.97 1.98 2.07 1.98 Cost-to-Income Ratio 31.08 28.76 29.74 31.02 29.60 30.38 Credit Provision / Avg. Lending Book 1.50 1.59 1.43 1.25 1.55 1.34 RoA 2.46 2.51 2.41 2.34 2.52 2.38 RoE 17.10 18.01 16.13 15.56 17.96 15.84 Debt-to-Equity 6.05x 6.27x 6.03x 5.85x 6.27x 5.85x Capital Adequacy (CRAR) 16.24 16.27 16.55 16.48 16.27 16.48 Tier 1 Capital 14.13 13.83 14.48 14.47 13.83 14.47 19 ^ Includes Fee Income Our Approach DELIVER 25% GROWTH IN AUM & SUSTAINABLE ROA IN MEDIUM TERM  Scale up Udyog Plus –  Share of secured loan  ABG/ABC ecosystem  STP and N-STP ENABLERS B2B Ecosystem book (Focus on MSME) synergies across product sourcing through digital segments journeys  Wallet share through newly launched products in  Share of Cross-sell & Up  Share of direct sourcing  Fee income opportunity small ticket emerging income sell (Leveraging Analytics) from emerging markets and through newly launched segments enhance geo footprint products 20 Aditya Birla Housing Finance 02 1 Performance Highlights for Q2 FY25 Disbursement AUM NII2 GS3 PBT ₹ 4,010 crore ₹ 23,236 crore ₹ 273 crore 1.30% ₹ 104 crore ↑ 113% Y-o-Y ↑ 51% Y-o-Y ↑ 33% Y-o-Y ↓ 134 bps Y-o-Y ↑ 7% Y-o-Y ↑ 31% Q-o-Q ↑ 14% Q-o-Q ↑ 20% Q-o-Q ↓ 30 bps Q-o-Q ↑ 22% Q-o-Q 95% retail disbursement at 9.2% ABG ecosystem 1.53% RoA CIBIL >700 & NTC1 contribution to 11.54% RoE disbursements 22 1New to credit, 2 Includes fee income Continued growth in disbursements and AUM… Momentum in disbursement (₹ crore) Growth in AUM (₹ crore) 113% y-o-y 51% y-o-y 4,010 15,439 20,399 23,236 3,068 9.0% 11.4% 12.5% 7.3% 9.0% 9.3% 34.2% 31.0% 29.9% 1,882 16.8% 18.4% 19.2% 32.7% 30.2% 29.0% Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Prime - HL Prime - LAP Affordable - HL Scorecard-based decisioning and Account Aggregator are Affordable - LAP CF now live on our unified lending platform ‘Finverse’ No. of 100% adoption of paperless digital Code creation for 58,400 69,700 75,300 Customers1 partner onboarding ATS2 (₹ Lacs) 24 26 27 23 1. Unique customers (rounded off to nearest ’00) 2. Average Ticket Size on Retail AUM …with focus on portfolio quality Particulars Sep’23 Jun’24 Sep’24 % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 95.61% 14,592 97.36% 19,182 97.78% 21,717 Stage 2 1.76% 269 1.04% 204 0.92% 205 Stage 3 2.63% 402 1.60% 315 1.30% 288 Stage 2 and 3 4.39% 671 2.64% 519 2.22% 493 Total 100.0% 15,263 100.0% 19,702 100.0% 22,210 Stage 3 PCR 33.9% 34.6% 40.9%  Stage 2+3 loans declined by 218 bps y-o-y from 4.39% in Sep’23 to 2.22% in Sep’24  Healthy stage 3 PCR at 40.9%  Launched end-to-end debt management platform - 'FinCollect' enabling daily tracker monitoring coverage of digital campaigns; Legal module gone live on platform  Leveraging analytics for efficient debt management - Pre-Delinquency Model for Bounce Prediction - Flow Prediction Model for 30-89 DPD Pool - Foreclosure prediction model 24 Note: Loan book as per IndAs Strong balance sheet with well-matched ALM ALM optimised for liquidity and costs Borrowing Mix (on Sept 30, 2024) Sep-23 Sep-24 Cumulative Outflows Cumulative Inflows 100% 100% 10% 14% 82% 80% Term Loan 35% 45% NHB 25% NCD 33% 35% 22% 23% Others 17% 17% 33% 13% 13% 7% 7% 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 year > 5 years 17% 21% Cumulative Surplus / (Gap) 6% 4% 4% 4% 6% -1% 0% Long-term credit rating of AAA (Crisil, ICRA, India ratings) Average cost of borrowings of 7.74% in Q2 FY25 25 Note: NCD includes sub -debt P&L and Key Ratios - Aditya Birla Housing Finance (₹ crore) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Net Interest Income (Incl. fee income) 815 205 227 273 394 500 Operating expenses 443 107 136 157 207 293 Operating profit 372 98 91 116 188 207 Credit provisioning -5 1 6 12 6 19 Profit before tax 376 97 85 104 181 189 Tax 86 22 19 24 41 43 Profit after tax 291 75 66 80 140 146 Net Worth 2,260 2,109 2,627 3,005 2,109 3,005 Borrowings and debt securities 15,947 13,507 17,336 19,602 13,507 19,602 Key ratios (in percent) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Effective Interest rate (EIR) 11.25 11.37 10.91 10.84 11.46 10.87 Net Interest cost / Avg. Loan book 6.52 6.50 6.66 6.62 6.47 6.64 Other Income / Avg. Loan book 0.65 0.68 0.74 1.02 0.54 0.89 Net Interest Income (Incl. Fee Income) 5.39 5.56 4.98 5.24 5.53 5.12 Opex / Avg. Loan book 2.93 2.90 2.99 3.01 2.90 3.00 Cost-to-income Ratio 54.35 52.12 60.00 57.40 52.41 58.58 Credit Provisioning/ Avg. Loan book -0.03 0.03 0.13 0.24 0.09 0.19 RoA 1.92 2.03 1.44 1.53 1.97 1.49 RoE 13.87 14.50 11.08 11.54 13.88 11.33 Debt-to-equity 7.06 6.41 6.60 6.52 6.41 6.52 Total CRAR 16.79 20.38 16.51 17.30 20.38 17.30 Tier -1 14.66 17.64 14.90 15.14 17.64 15.14 26 1. NII including fee (net of DSA Expenses and Processing Cost) Our Approach Growth Accelerate growth in prime & affordable segments with average ticket size of ₹ 25 – 30 lacs Growth to be augmented by ABG ecosystem Growth To be the most preferred choice of our customer Service Business loans Digital capabilities for seamless customer onboarding and servicing Service excellence Building a culture of spotting opportunities with customers at center excellence Develop assisted/ DIY customer journeys with Effective lead management Digital Seamless distributor onboarding Digital reinvention Significant reduction in TAT, increased face time with customers reinvention Growth 150 branches as of Sep 30, 2024, covering ~ 85% of TAM Sourcing driven by micro market penetration strategy Distribution Deeper engagement with ABG ecosystem network Target portfolio CAGR of 25% over next 2-3 years; potential for further acceleration in growth 27 Aditya Birla Sun Life AMC 02 8 Performance Highlights for Q2 FY25 Mutual fund Equity Individual Total QAAUM1 MAAUM3 PAT QAAUM1 Revenue ₹ 3,83,309 crore ₹ 1,80,658 crore ₹ 2,03,391 crore ₹ 520 crore ₹ 242 crore Market share Market share2 4.55% ↑ 28% Y-o-Y ↑ 33% Y-o-Y ↑ 36% Y-o-Y 6.47% Mix 47.1% Monthly SIP4 flows Serviced 10.2 mn folios ₹ 1,425 Crore for Sep-24 as of Sep-24 47% Y-o-Y 29 1.For Q2 FY25. 2. Excluding ETF share, 3. For Sep 2024 4.Includes STP Strong growth in AUM… Mutual fund closing assets under management1 Total quarterly average assets under management1 24% y-o-y 27% y-o-y 3,67,607 4,00,396 2,93,858 3,51,890 3,72,434 3,23,544 1,003 879 16,084 49,579 46,614 941 14,187 62,086 11,694 54,597 40,058 1,39,097 56,344 1,35,695 1,40,565 1,35,816 1,23,404 1,24,346 1,69,582 1,83,758 1,80,658 1,30,396 1,62,129 1,30,209 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Mutual Fund - Equity Mutual Fund - Debt* Mutual Fund - Liquid Mutual Fund - Equity Mutual Fund - Debt* Mutual Fund - Liquid Alternate Assets - Equity Alternate Assets - Others Total QAAUM Equity MF mix of 49.3% Equity MF mix of 47.1% 30 1.All figures in ₹Crores *Mutual Fund Debt includes ETF …backed by a robust growth in retail franchise Individual B-30 Building sustainable Long Tenure (2) MAAUM MAAUM SIP (1) flows SIP Book SIP Flows in # of Live Outstanding 28% y-o-y 34% y-o-y ₹ Crore SIPs (Mn) % Count of Total SIPs 95% 2,03,391 71,061 47% 42% 88% 4.59 1,425 1,59,069 53,082 968 3.23 Sep-23 Sep-24 Sep-23 Sep-24 Sep-23 Sep-24 Sep-23 Sep'24 Over 5 Over 10 years years 31 1 Includes STP 2 Based on tenure at the time of registration of all live SIPs as on Sep 30, 2024 Strong growth alternate assets AUM1 Growth Funds Launched/Pipeline Fund Raising underway Q2 FY24 Q2 FY25 ABSL India Special Opportunities Fund ABSL Structured Opportunities Fund II ` 3,852 Cr ` 3,852 Cr ` 2,324 Cr ↑ 66% Product Pipeline PMS/AIF India Yield Advantage Fund INR 7,861 Cr ABSL Money Manager Fund Awarded mandate for managing ESIC Fund under PMS route Offshore Fund Raising underway Q2 FY24 Q2 FY25 ABSL Global EM* Equity Fund (IFSC) Offshore ABSL India ESG Engagement Fund (IFSC) ` 12,745 Cr ` 9,733 Cr ↑ 31% ` 12,745 Cr ABSL India Opportunities Fund Product Pipeline ABSL Flexi Cap Fund (IFSC) ABSL Global Bluechip Fund (IFSC) Real Estate AUM1 at ` 491 Cr. Fund raising underway for “Aditya Birla Real Estate Credit Opportunities Fund” Series 2 32 1Avg AUM for Q2 FY25 *Emerging Markets Building Passive Business Passive AUM1 ` 30,125 Cr ~9,58,000 Investor Folios Serviced 7x growth since Sep-21 Sep-2024 Sep-2021 INR 7,861 Cr ` 2,964 Cr Rank 1 ↑ 10x ` 30,125 Cr In Debt Index2 47 Extensive product bouquet ETF AUM Index AUM FOF AUM 3x growth since Sep 2021 ` 1,008Cr ↑8x ` 7,862 Cr ` 1,078 Cr ` 878 Cr ↑2x ` 2,169 Cr ↑19x ` 20,094 Cr 33 1 Closing AUM for ETFs/FoFs/Index Funds; 2 Based on Average AUM for the quarter ending Sep 30,2024 ; Pan-India distribution network Continue to expand distributor base and empaneled 5,500 + new MFDs in H1 FY25 300+ Locations 86,000+ 90 95+ 340+ 130+ MFDs Banks Emerging Market National Digital Over 80% are Locations Distributors Partners in B30 cities Servicing Investors across 19,000+ Pan-India pin codes Overall Asset Sourcing Mix1 Broad based sourcing of Equity Assets 9% 8% 8% 9% 10% 9% 17% 16% 17% 20% 20% 20% 32% 33% 33% Bank Bank 54% 54% 54% National Distributor National Distributor MFDs MFDs 42% 43% 42% Direct 16% 17% 17% Direct Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 34 (1) Excluding ETF P&L - Aditya Birla Sunlife AMC (₹ crore) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Revenue from Operations 1,353 335 387 424 646 811 Costs 632 154 177 185 303 362 Operating Profit 721 181 210 239 344 449 Other Income 287 56 95 96 133 191 Profit before tax 1,008 237 305 335 477 640 Tax 228 59 69 93 114 162 Profit after tax 780 178 236 242 363 478 Mutual fund AAUM 3,12,764 3,10,899 3,52,542 3,83,309 3,03,918 3,67,926 Mutual fund equity AAUM 1,34,206 1,30,209 1,62,129 1,80,658 1,24,416 1,71,394 Alternate assets equity AAUM 11,919 11,694 14,187 16,084 11,129 15,135 Total equity AAUM 1,46,125 1,41,902 1,76,316 1,96,742 1,35,545 1,86,529 35 Our Approach Scale up retail franchise and diversify product offerings Focusing on Direct/HNI Channel to provide incremental growth Retail Drive growth in SIP flows franchise Focus on scaling alternative assets business including AIF, PMS and Real Estate New product launches in equity and fixed income AIF and scale up existing PMS portfolios Passive & alternative Increase presence among institutional investors investments Leverage digital platforms for seamless delivery Expand geographic reach and strengthen multi-channel distribution network Digital & Leverage One ABC locations to increase reach and contribution from cross sell and up sell distribution Driven by strong risk management and governance framework 36 Aditya Birla Sun Life Insurance 37 Performance Highlights for H1 FY25 Individual Group Total FYP AUM Net VNB2 FYP1 Premium ` 1,578 cr ` 2,834 cr ` 8,657 cr ` 95,553 cr 7.4% ↑ 33% Y-o-Y ↑ 45% Y-o-Y ↑ 27% Y-o-Y ↑ 24% Y-o-Y ↓ ~680 bps Y-o-Y NB Policies growth at 27% Renewal Premium ↑ 12% Embedded Value at ` 12,368 cr ↑ 20.9% Y-o-Y 38 1.Single premium @ 10% 2.Individual + Group Risk Outperformed industry growth in individual and group segments Individual FYP1 Group New Business Premium Private Private ABSLI Industry ABSLI Industry Players Players Y-o-Y 33% Y-o-Y 24% Y-o-Y 21% Y-o-Y Y-o-Y 45% Y-o-Y 2% Y-o-Y 20% Y-o-Y ` crore ` crore 1,578 2,834 1,188 2,166 1,959 1,051 Sep’22 Sep’23 Sep’24 Sep’22 Sep’23 Sep’24 ABSLI Market ABSLI Market 4.4% (H1FY24: 4.1%) 9.8% (H1FY24: 6.9%) Share2 Share2 44% y-o-y growth in Q2 FY25 49% y-o-y growth in Q2 FY25 39 1. Individual FYP adjusted for 10% of single premium 2. Market Share among private players Source IRDAI Diversified and scaled up distribution mix… 4,700+ 380+ 59,900+ 111 26,300+ Cities Own Branches Agents Banca Tie-ups Bank Branches Strong growth across channels Channel Mix Product Mix by Channel (H1 FY25 FYP ` In Cr) (H1 FY25) Proprietary Partnership Protection Traditional ULIP 34% 5% 2% 30% 35% 38% 38% 58% 66% 65% 62% 62% 260 384 29% 40% Proprietary Partnerships H1 FY23 H1 FY24 H1 FY25 Proprietory Partnership … with strong growth across direct and partnership channels 40 1. Axis Bank, Bank of Maharashtra, Bharat Bank , DB, DBS, DCB, HDFC Bank, Indian Bank, IDFC First Bank, KVB & Ujjivan Product Mix and VNB margin Product Mix VNB ` crore 3% 3% 3% 12.3% 23.0% 14.2% 20.2% 7.4% 17-18% Protection 61% Traditional 74% 79% 800 ULIP 697 195 136 150 36% 23% 18% H1 FY23 H1 FY24 H1 FY25 H1 FY23 FY23 H1 FY24 FY24 H1 FY25 FY25E Param Suraksha- High Sum Assured ULIP ❖ Pre-Approved Sum Assured (PASA) contribution ❖ Subject to interest rate scenario, maturity and ❖ High SA ULIP coupled with Riders survival benefits are appropriately hedged through stands at 34% of FYP in H1 FY25 (H1FY24: ❖ Helps drive active rider attachment 27%) forward rate agreements Income Suraksha (Protection) ❖ 29% Upsell contribution in Individual FYP ❖ Guarantees are actively monitored, and ❖ Industry First product with income for minimum 10 counterparty risk is managed through multiple (H1FY24: 28%) parties years to the nominee 41 Strong digital adoption leading to… Customer Customer Self Pre-Approved Onboarding 100% Digital Renewal 81% Servicing 94% New Business 34% Customer Experience Customer Retention Customer Centricity Pre-Purchase 100% New business Digital collection at 81% WhatsApp & Chatbot PASA1 contributed 34% processed digitally contributed 12% in Q2 of H1 FY25 (H1 FY24 - FY25 27%) 73% adoption for 93% Auto pay adoption 83% services available 65.6 lakh presentations Contactless Digital digitally and 67% Created (+26% over H1 at onboarding stage Verification (Insta – services are STP FY24) & 2.95 lakh verify) for customers Marketing Content Shared (+15% over H1 ZARA (Bot) collected ~ Digital Adoption share of FY24) 49% of total ` 363 Cr (LY – 303 Cr). 94% application were Auto Monthly Average under written Users: 34,600 (+16% over H1 FY24) & Daily Average Users: 8,700 (+36% over H1 FY24) 42 1. Pre-approved sum assured …consistent improvement in persistency and efficiency Total Renewal Premium Persistency1 Opex Ratio2 ( ` crore) Renewal Growth Digital Renewal Improving Persistency across all Controlled Operating expenses cohorts ↑ 12% 14% Y-o-Y 81% 77%3 H1 FY25 H1 FY24 H1 FY23 Δ 2Y 16% - 2Yr CAGR 88% 3% 20.2% 20.6% 13 M 87% 18.8% 85% 3,942 75% 25 M 3,521 73% 4% 2,952 71% 68% 1% 37 M 66% 67% H1 FY23 H1 FY24 H1 FY25 67% 16% 61 M 60% H1 FY23 H1 FY24 H1 FY25 51% 1 12month rolling block as per revised IRDAI Circular 2 Opex to Total Premium 43 3 Individual Renewal Premium Robust investment process and performance… Asset Under Management (in ` Cr) Composition of AUM 22% - 2Yr CAGR 95,553 3% Debt 76,994 24% 26% Equity 64,643 75% 75% 76% 24% 25% 25% Sep’22 Sep’23 Sep’24 47% Investment Performance1 Crisil Benchmark Performance Equity & others Income Advantage Enhancer Maximizer Debentures & Bonds (Debt Fund) (Balanced Fund) (Equity Fund) Govt securities Money Market Instruments Growth of 24% in AUM vis-à-vis H1 10.9% 14.9%15.6% 30.7% 34.3% FY24 7.6% 9.1% 9.6% 5.5% 6.9% 15.8% 19.1% 95.05% of debt investments are AAA rated or sovereign instruments 1 yr 5 yr 1 yr 5 yr 1 yr 5 yr as of Sep 30, 2024 …with fund returns higher than benchmark returns 44 1 Top Funds in respective category P&L and Key Ratios - Aditya Birla Sun Life Insurance (` crore) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Individual First year Premium1 3,546 745 807 1,074 1,347 1,881 Group First year Premium 4,554 898 1,498 1,336 1,959 2,834 Renewal Premium 9,160 2,080 1,681 2,261 3,521 3,942 Total Gross Premium 17,260 3,722 3,986 4,671 6,827 8,657 Operating expenses (Incl. Commission) 3,191 731 795 985 1,381 1,780 Profit Before Tax2 198 42 21 44 62 66 Profit After Tax2 132 24 10 20 35 30 Key ratios (in percent) FY24 Q2 FY24 Q1 FY25 Q2 FY25 H1 FY24 H1 FY25 Opex to Premium (Incl. Commission) 18.5% 19.6% 19.9% 21.1% 20.2% 20.6% Solvency Ratio 178% 188% 172% 188% 188% 188% 45 1 FYP@100% 2 Consolidated nos. including Aditya Birla Sun Life Pension Management Company Limited Our Approach Growth Grow traditional products including protection in retail segment Focus on growing credit life in group segment Continue to make investments in Direct channel Growth Invest in PSU relationships and New relationships to grow mindshare Mitigate interest rate risk by Active forward rate agreement management for hedging of expected maturity and survival benefits Improve persistency across cohorts Risk management Strengthening underwriting by using artificial intelligence and machine learning and quality Focus on increasing the share of proprietary business Increase agency capacity to drive growth Penetrate more Bank partner branches to increase spread of business Distribution Analytics based engine to identify high propensity customers and improve upsell opportunities through pre-approved sum assured Data Leverage cross-sell in ABC via analytics Analytics Grow individual FYP at 20%+ CAGR over the next three years and endeavour to keep the VNB margin at 17-18% 46 Aditya Birla Health Insurance 47 Performance Highlights for H1 FY25 Market Combined GWP1 Share PBT2 Ratio ` 2,171 crore 11.9% SAHI ` (115) crore 113% 10.7% LY (140) Crore 119% ↑ 39% Y-o-Y ↑ 123 bps LY LY ▪ Continues to be the Fastest ▪ Diversified Retail growth ▪ 85%+ increase in Monthly growing SAHI player H1 FY25 across distribution channels Active Users on App ▪ 51% YoY growth in Retail ▪ 38% YoY growth in Proprietary | ▪ Launched affordable maternity Business 119% YoY growth in Digital product 48 1.Gross premium of Health Insurance 2. As Per IND AS Scaled-up, diversified and digitally enabled distribution 5000+ 225+ 128K+ 19 6,000+ 11K+ Cities Branches Agents Bank Sales Force Network Partners Hospitals Channel Mix1 Product Mix Non-Metro GWP2 Proprietary 30% 28% Metro 28% 30% Indemnity 84% 80% 73% 69% Partnerships 70% 72% Non - Metro 72% 70% Fixed Benefits 16% 20% H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 49 1. Proprietary includes Agency, Direct business | 2. Metro refers to Mumbai, Delhi, Chennai, Kolkata, Hyderabad, Bangalore, Ahmedabad, Pune and Surat Distribution Mix and Business Growth Highly Diversified Distribution Mix +51% Proprietary We continue to grow higher than the market… Retail GWP 1217 Growth at 38% (` Crores) Focus on scaling Proprietary channel | Increase in Agent 339 count ABHI SAHI Industry 808 H1 FY24 23% +25% 24% Banca H1 FY25 +39% +25% 10% 246 408 Growth at 46% Deepened existing partner ….Fastest growing player in H1 with 39% growth 280 relationships | Activating new 199 partners 91 271 Digital 191 ~1.2% Growth at 119% H1 FY24 H1 FY25 Market share increased- 11.9% from 10.7% Proprietary Digital Launched new products to drive growth Banks CA/Brokers 50 1. Proprietary includes Agency, Direct business Fulfilling customer expectations – Maternity Product launched Affordable Pricing Limited waiting Fixed benefit cover Period 51  Digitally powered health first Differentiated Model Model Know your Health Improve your Health Get Rewarded Health Assessments Eligible Customers earning HR* Scale Lives Intervened YTD Sept’24 3L+ YTD Sept’24 1L+ YTD Sept’24 7.4% YTD Sept’23 1.3L+ YTD Sept’23 0.4L+ YTD Sept’23 4.1% Digital Delivery ▪ Well-Being Score ▪ Water intake tracker ▪ Chronic Disease Mgmt. ▪ Campaigns and community ▪ Hyper personalised nudges ▪ BMI Calculator ▪ Mental Wellbeing ▪ Expert Health Coaching ▪ Health Blogs & Wellness ▪ Upto 100% Health Returns content ▪ Digital Face Scan ▪ Happiness Quotient ▪ Teleconsultation ▪ Step count → device syncing ▪ Discounted Health Services ~17Lakhs personalised well-being score generated 33%+ customers administered HA/DHA Data Driven 100+ data points for each customers 16Bn+ Monthly steps clocked on our App ~17% eligible customers participating Activ Dayz Superior customer understanding >> Better Loss Ratio Management & Customer Retention Strategy for engaged cohort HA DHA Activ Dayz & Health Returns are on 12M rolling as of Sep’24 with 1 month lag. | WBS Count is for active customers as of Sep’24 | Persistency and Loss 52 ratio data is as of Sep’24, | High risk customer intervened is on ITD basis on Intervention completion basis. 1. Based on customers where WBS calculated 2. Intervened cohort Vs RHI lives *Health Returns Driving Higher Engagement for better outcomes Loss Ratio* of physically active customers Customers earning higher health Persistency of physically active is significantly lower than Inactive returns have lower loss ratios* customers is higher than inactive Loss Ratio 107% 100% 0-0.5K Health Returns INR 100% 100% 102% 102% 81% 79% 79% 100% Loss Ratio 100% Persistency 59% 0.5K-1K 86% 1K-2K 68% 2K-5K 71% 1 to 3 4 to 6 7 to 9 10 to 13 & 5K+ 66% 1 to 3 4 to 6 7 to 9 10 to 13 & 12 above 12 above Monthly Active Days Monthly Active Days Engaged customer cohorts with > 4 Engaged customer cohorts earning HR > Engaged customer cohorts with > 7 Monthly Active Days have shown better 0.5K have shown better loss ratios from 14% Monthly Active Days have shown better loss ratios from 20% to 40% vs Inactive to 34% vs Non-Earners persistency from 2% to 7% vs Inactive customers customers 53 *Loss ratio indexed for base– Lives 12 month rolling | HR – Health Returns High Risk Customer Intervention – Outcomes Risk Stratification (WBS) for 16.9L+ customers | 2.23L+ High Risk customers Identified | 1L+ High Risk Customers Intervened Improved Biometrics* Customer experience Financial Impact 45% 3% 23% Better loss ratio2 Blood Sugar Values Members doing in Intervened High-Risk Health Assessments 22% 3% 47% Better persistency2 Total Cholesterol Values Members Earning YoY Active Dayz ~9K 37% 16% Hospitalizations events prevented via Health Members Earning YoY Blood Pressure Values Coaching Health Returns * % of members reporting clinically improved lab values for intervened cohort *HA, AD & HR is on 12M rolling as of Sep’24 with 1 month lag for active intervened customer *LR & Persistency is on 12M rolling as of Sep’24, 54 *High risk customer intervened is on ITD basis *Hospitalization averted is on 12M rolling as of Sep’24 | 2 Compared to RHI lives Activ Health Resulting App as aleading in industry key product in health first proposition engagement Activ Health App 2.8Mn+ 4.6 50+ App Downloads Play-store Rating Services