Aditya Birla Capital Q1 FY25 Financial Results PDF

Ref: No. ABCL/SD/MUM/2024-25/AUGUST/02 01 August 2024 BSE Limited National Stock Exchange of India Ltd th Phiroze Jeejeebhoy Towers,...

Ref: No. ABCL/SD/MUM/2024-25/AUGUST/02 01 August 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 ended 30 June 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 Thursday, 01 August 2024 at 16:30 HRS (IST) have already been intimated vide our letter dated 22 July 2024. The above is for your information, records and dissemination please. Thanking you, Yours sincerely, For Aditya Birla Capital Limited PINKY Digitally signed by PINKY ATUL ATUL MEHTA Date: 2024.08.01 MEHTA 14:00:52 +05'30' Pinky Mehta Chief Financial 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 Q1 FY25 FINANCIAL RESULTS INVESTOR PRESENTATION Aug 01, 2024 A Leading Financial Services Conglomerate 01 Diversified Financial Services Platform from a Trusted conglomerate Promoter & Grasim Industries Promoter Group 52.6% 16.3% 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 Housing Finance Asset Management Standalone Health Financial Company Life Insurance Company Insurance Listed 74% 50% 100% Aditya Birla Money Aditya Birla Insurance Aditya Birla ARC 74% Brokers1 Stock & Securities Stressed asset platform broking General Insurance 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. 1. The Board of Directors of Aditya Birla Capital at its meeting held on March 27, 2023 has approved the sale of its entire stake in Aditya Birla Insurance Brokers Limited (ABIBL). IRDAI vide its letter dated July 24, 2024, has approved the proposed transaction, to be carried out within 60 days of approval. 02 Shareholding as of Jun 30, 2024 Highlights for Q1 FY25 03 Financial performance Consolidated PAT1 at ` 745 Cr (↑ 15% y-o-y) Consolidated Revenue1,2 at ` 10,258 Cr (↑ 26% y-o-y) Total lending3 portfolio of ` 1,27,705 Cr (↑ 27% y-o-y & ↑ 3% q-o-q) Total AUM4 of ` 4,62,891 Cr (↑ 20% y-o-y & ↑ 6% q-o-q) Gross premium5 of ` 5,027 Cr (↑ 30% y-o-y) 1. Excluding one-off items 2. Consolidated segment revenue; for Ind AS statutory reporting purpose Asset management, wellness business and 4 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 Performance across key businesses Life Health NBFC Housing Asset Management Insurance Insurance Loan Book AUM Growth Premium Growth2 ` 1,07,306 crore1 ` 20,399 crore1 ` 352,542 crore ` 162,129 crore Individual FYP Gross Premium 25% y-o-y 41% y-o-y Domestic AAUM3 Equity AAUM3 19% y-o-y 35% y-o-y 2% q-o-q 11% q-o-q 19% y-o-y 37% y-o-y Profitability2 Profitability2 Margin & Combined Ratio2 PBT ` 833 crore PBT ` 85 crore Operating profit Profit after tax Combined ratio Net VNB margin ` 210 crore ` 236 crore 112% 16.13% RoE 11.04% RoE 6.5% 29% y-o-y 28% y-o-y (Q1 FY24: 118%) Credit quality (GS2 & GS31) Quality Persistency & Market Share 4.45% 2.64% Equity AAUM Mix3 Monthly SIP 13th month 88% flows4 Market share2,6 46% 1% y-o-y 101 bps y-o-y 214 bps y-o-y 12.5% ` 1,367 crore5 61st month 66% 4 bps q-o-q 27 bps q-o-q 604 bps y-o-y 39% y-o-y 9% y-o-y 92 bps y-o-y 05 1. As of Jun 30, 2024 2. For Q1 FY25. 3. Average assets under management for Q1 FY25 4. Includes STP 5. For Jun 2024 6. Among SAHI players Consolidated Revenue and PAT Consolidated Revenue and PAT Business-wise Profitability Revenue1 Businesses (` crore) Q1 FY24 Q1 FY25 Y-o-Y 26% y-o-y NBFC 691 833 21% 10,258 8,144 HFC 84 85 5,862 27% Asset Management 240 305 Life Insurance 20 21 7% Other Businesses 79 76 3% Q1 FY23 Q1 FY24 Q1 FY25 Sub-total 1,114 1,320 19% Profit After Tax Health Insurance (63) (54) 15% y-o-y Less: Others2/ Eliminations (26) (38) 745 Aggregate PBT 1,026 1,228 20% 649 429 Less: Provision for Taxes (302) (362) Less: Minority Interest (75) (121) Profit after tax 649 745 15% Q1 FY23 Q1 FY24 Q1 FY25 Reported PAT3 649 759 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 ABCL standalone, Aditya Birla Capital Digital Limited and other businesses 3. Reported PAT in Q1 FY25 includes gain of ` 14 cr (net of tax) from sale of shares in ABSLAMC 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 825 co-located branches Dedicated customer service locations across 231 locations managers for cross sell One Experience Channel 2 lakh+ channel Partner partners 1,505 branches across businesses …providing complete flexibility to customers to choose preferred channel of interaction 07 ABCD D2C platform Simplicity Unique and engaging design | Uncluttered Layout | Intuitive Navigation | Jargon Free Language | Ease of Action My Track Unified View of bank accounts, deposits, loans, mutual funds, stocks | Instant Health Check with a “Selfie” | Track and Categorize spends Everything Finance One Platform for all things finance | In house manufacturing advantage Omnichannel from Day 1 Digital, Virtual & Branch coverage | Gen AI powered chatbot and voice- search | Real time Co-browsing Payments Multi Account Payment | Pre-verified bank transfers | UPI International | RuPay on UPI | Multi-mode receipt 20+ Product categories, ~ 8 lakh Downloads1 08 1. Till July 31, 2023 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 10 lakh+ registrations, ~ ` 2,600 Cr + AUM 09 Aditya Birla Finance 01 0 Performance Highlights for Q1 FY25 AUM1 Retail, SME NII3 & HNI loans2 PBT GS2 & GS34 ₹ 70,616 crore ₹ 1,07,306 crore ₹ 1,709 crore ₹ 833 crore 4.45% (66% of AUM) ↑ 25% Y-o-Y ↑ 23% Y-o-Y ↑ 19% Y-o-Y ↑ 21% Y-o-Y ↓ 101 bps Y-o-Y ↑ 2% Q-o-Q ↑ 0.1% Q-o-Q ↑ 1% Q-o-Q ↑ 5% Q-o-Q ↓ 4 bps Q-o-Q 415 branches as of Jun’24 RoA of 2.41% in Q1 FY25 RoE of 16.13% in Q1 FY25 1Jun’24 AUM includes ₹ 267 crore of Direct Assignment portfolio | 2Categorized basis customer segment | 3Includes fee income | 01 4As per financials 1 Strong Growth in AUM… AUM (₹ crore) Jun’23 Mar’24 Jun’24 Jun’24 Mix Q-o-Q Y-o-Y - Unsecured business 8,574 10,979 10,546 10% -4% 23% - Secured business 33,188 45,256 47,557 44% 5% 43% Total Business loans 41,762 56,235 58,104 54% 3% 39% Personal & Consumer loans 17,693 17,434 16,130 15% -7% -9% Corporate / Mid-market 26,437 31,970 33,071 31% 3% 25% Total AUM 85,891 1,05,639 1,07,306 100% 2% 25% Disbursements (₹ crore) Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY25 Mix Y-o-Y - Unsecured business 1,157 1,383 1,078 8% -7% - Secured business 4,132 8,460 5,461 41% 32% Total Business loans 5,289 9,843 6,539 49% 24% Personal & Consumer loans 4,778 2,445 2,395 18% -50% Corporate / Mid-market 3,169 5,835 4,508 34% 42% Total Disbursements 13,237 18,123 13,443 100% 2% …driven by business loans to SMEs 01 Note: Disbursements are non-LOC. 2 Jun’24 AUM includes ₹ 267 crore of Direct Assignment portfolio Growth Momentum in Business Loans Personal & Consumer 9% y-o-y Secured business 43% y-o-y 47,557 17,693 17,434 45,256 CL - Others LAS 3% 3% 16,130 15% 0.7% 15% 11% 3% CL - BNPL 0.3% TL / WCDL 33,188 22% 24% 13% PL LRD 5% 97% 5% 85% 97% 28% LAP 7% 56% 57% 53% Jun-23 Mar-24 Jun-24 Jun-23 Mar-24 Jun-24 Unsecured business 23% y-o-y Corporate / Mid-market 25% y-o-y 31,970 33,071 10,979 10,546 TL / WCDL Business Loans 26,437 8,574 Structured Finance 54% 53% Supply Chain 78% 81% 54% Construction Finance 42% AUM covered 79% 4% 3% under Central Govt. 5% 20% Project Finance 15% 20% schemes (June’24) 21% 22% 19% 26% 21% 24% Jun-23 Mar-24 Jun-24 Jun-23 Mar-24 Jun-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) PL: ~ ₹ 1.7 Lac , BNPL~ ₹ 0.08 Lac, ATS1 ~ ₹ 9.9 Lac ~ ₹ 1.4 Crore ~ ₹ 64.7 Crore CL others: ~ ₹ 0.9 lac 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 >70% of loan book is Secured 1 ATS has been derived basis closing AUM to active customers, and represents an approximate figure as on June 30, 2024 01 4 Strong Digital Adoption in Customer Sourcing and Servicing Customer EMIs Collected Digital Service Email BOT Onboarding 92% Digitally 98% Interactions 94% 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 3% 55% 5% ❖ Usage of Alternate Data in credit decisioning Customer Profile ❖ STP process for faster TAT 36% ❖ Usage of behavior based Predictive Modelling for upsell NTC 91% loans with credit score 700+ ❖ In house Business Rule engine for rapid roll out of program norms 01 6 Prudent Risk Management Practices… Jun’23 Mar’24 Jun’24 Particulars % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 94.54% 81,093 95.51% 1,00,942 95.55% 1,02,517 Stage 2 2.64% 2,266 1.98% 2,094 1.91% 2,051 Stage 3 2.82% 2,419 2.51% 2,649 2.54% 2,725 Stage 2 and 3 5.46% 4,685 4.49% 4,743 4.45% 4,775 Total Loan book 100% 85,778 100% 1,05,686 100% 1,07,292 Stage 3 PCR 46.6% 49.9% 49.5% Jun’23 Mar’24 Jun’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% 78.1% 2.9% 2.8% 82.9% 2.8% 3.2% 85.8% Unsecured business 1.6% 2.7% 43.3% 1.3% 2.9% 35.3% 1.8% 3.4%* 35.5% Secured business 4.3% 2.4% 37.3% 2.9% 1.8% 38.8% 2.7% 1.7% 37.9% Corporate / Mid-market 1.3% 4.1% 43.6% 0.3% 3.3% 47.8% 0.3% 3.1% 45.3% Total 2.6% 2.8% 46.6% 2.0% 2.5% 49.9% 1.9% 2.5% 49.5% *Unsecured business – 57% Stage 3 book is secured under Govt. Guarantee Schemes, excluding which GS 3 is 1.5%. …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% 3% 4% 9% 8% 10% 11% 47% 38% 53% 52% 30% 25% 25% 22% 21% 16% 17% 11% 11% 6% 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 years > 5 years Mar’23 Mar’24 Term Loan NCD CP ECB CC/WCDL/Others Cumulative Surplus / (Gap) 76% 44% 30% 39% 25% 3% 0% Asset Liability Mix Long-term funding facilities rated AAA & Short-term funding facilities rated A1+ by ICRA / India Ratings / CARE 38% 39% Fixed Raised LT borrowing of ₹ 9,013 crore in Q1 FY25 Floating (₹ 6,647 crore in Q1 FY24 & ₹ 5,794 crore in Q4 FY24) 62% 61% Maintained comfortable Capital Adequacy (CRAR) at ~16.55% and Liability Asset Tier 1 ratio of 14.48% (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 Q1 FY24 Q4 FY24 Q1 FY25 Net Interest Income^ 6,296 1,433 1,693 1,709 Operating Expenses 1,957 437 550 508 Credit Provisioning 1,352 306 349 368 Profit Before Tax 2,987 691 794 833 Tax 766 175 209 212 Profit After Tax 2,221 516 585 621 Total Equity 15,244 11,936 15,244 15,863 Total Borrowings and Debt Securities 92,292 75,476 92,292 95,731 Key Ratios (in percent) FY24 Q1 FY24 Q4 FY24 Q1 FY25 Average Yield^ 13.70 13.62 13.76 13.51 Interest Cost / Avg. Lending Book 6.80 6.64 6.90 6.95 Net Interest Margin^ 6.90 6.98 6.86 6.56 Opex / Avg. Lending Book 2.17 2.15 2.26 1.97 Cost-to-Income Ratio 31.08 30.48 32.50 29.74 Credit Provision / Avg. Lending Book 1.50 1.51 1.43 1.43 RoA 2.46 2.54 2.40 2.41 RoE 17.10 17.89 15.85 16.13 Debt-to-Equity 6.05x 6.32x 6.05x 6.03x Capital Adequacy (CRAR) 16.24 16.00 16.24 16.55 Tier 1 Capital 14.13 13.60 14.13 14.48 19 ^ Includes Fee Income Our Approach DELIVER SUSTAINABLE GROWTH & 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 Q1 FY25 Disbursement AUM NII2 GS3 PBT ₹ 3,068 crore ₹ 20,399 crore ₹ 227 crore 1.60% ₹ 85 crore ↑ 89% Y-o-Y ↑ 41% Y-o-Y ↑ 20% Y-o-Y ↓ 107 bps Y-o-Y ↑ 0.3% Y-o-Y ↑ 5% Q-o-Q ↑ 11% Q-o-Q ↑ 8% Q-o-Q ↓ 22 bps Q-o-Q ↓ 11% Q-o-Q 95% retail disbursement at 10.5% ABG ecosystem 1.44% RoA CIBIL >700 & NTC1 contribution to 11.04% RoE disbursements 22 1New to credit, 2 Includes fee income Continued growth in disbursements and AUM… Momentum in disbursement (₹ crore) Growth in AUM (₹ crore) 89% y-o-y 41% y-o-y 2,933 3,068 14,509 18,420 20,399 8% 11% 11% 7% 8% 9% 1,620 35% 32% 31% 17% 18% 18% 33% 31% 30% Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Prime - HL Prime - LAP Affordable - HL Implemented platforms across customer life cycle Affordable - LAP CF Successful adoption of end-to-end (prospecting to No. of 56,400 64,900 69,700 disbursement) unified digital lending platform, integrated Customers1 with sales CRM ATS2 (₹ Lacs) 26 28 29 23 1. Unique customers (rounded off to nearest ’00) 2. Average Ticket Size …with focus on portfolio quality Particulars Jun’23 Mar’24 Jun’24 % ₹ Crore % ₹ Crore % ₹ Crore Stage 1 95.22% 13,816 97.09% 17,358 97.36% 19,182 Stage 2 2.11% 306 1.08% 194 1.04% 204 Stage 3 2.67% 388 1.82% 325 1.60% 315 Stage 2 and 3 4.78% 693 2.91% 519 2.64% 519 Total 100.0% 14,509 100.0% 17,877 100.0% 19,702 Stage 3 PCR 33.1% 33.0% 34.6%  Stage 2+3 loans declined by 214 bps y-o-y from 4.78% in Jun’23 to 2.64% in Jun’24  Healthy stage 3 PCR at 34.6%  Launched end-to-end debt management platform - 'FinCollect' enabling real-time tracking of field visits and enhancing customer interactions through digital channels  Leveraging analytics for efficient debt management - Pre-Delinquency Model for Bounce Prediction - Flow Prediction Model for 30-89 DPD Pool 24 Note: Loan book as per IndAs Strong balance sheet with well-matched ALM ALM optimised for liquidity and costs Borrowing Mix (on Jun 30, 2024) 100%100% Jun-23 Jun-24 Cumulative Outflows Cumulative Inflows 81% 80% 12% 15% 47% Term Loan 37% NHB 34%35% 21% 21% 24% NCD 13% 14% 17% 18% 27% 7% 8% Others 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 1-5 year > 5 years 20% 20% Cumulative Surplus / (Gap) 7% 5% 5% 11% 1% -1% 0% Long-term credit rating of AAA (ICRA, India ratings) Average cost of borrowings of 7.74% in Q1 FY25 25 Note: NCD includes sub -debt P&L and Key Ratios - Aditya Birla Housing Finance (₹ crore) FY24 Q1 FY24 Q4 FY24 Q1 FY25 Net Interest Income (Incl. fee income) 815 190 211 227 Operating expenses 443 100 123 136 Operating profit 372 90 88 91 Credit provisioning -5 5 -7 6 Profit before tax 376 84 95 85 Tax 86 19 23 19 Profit after tax 291 65 72 66 Net Worth 2,260 2,034 2,260 2,627 Borrowings and debt securities 15,947 13,065 15,947 17,336 Key ratios (in percent) FY24 Q1 FY24 Q4 FY24 Q1 FY25 Effective Interest rate (EIR) 11.25 11.56 11.00 10.91 Net Interest cost / Avg. Loan book 6.52 6.45 6.62 6.66 Other Income / Avg. Loan book 0.65 0.40 0.76 0.74 Net Interest Income (Incl. Fee Income) 5.39 5.51 5.15 4.98 Opex / Avg. Loan book 2.93 2.90 3.00 2.99 Cost-to-income Ratio 54.35 52.71 58.37 60.00 Credit Provisioning/ Avg. Loan book -0.03 0.15 -0.17 0.13 RoA 1.92 1.90 1.76 1.44 RoE 13.87 13.23 13.17 11.04 Debt-to-equity 7.06 6.43 7.06 6.60 Total CRAR 16.79 21.01 16.79 16.51 Tier-1 14.66 17.88 14.66 14.90 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 138 branches as of Jun 30, 2024, covering ~ 85% of TAM Sourcing driven by micro market penetration strategy Distribution Deeper engagement with ABG ecosystem network Deliver sustainable growth and RoA in medium term 27 Aditya Birla Sun Life AMC 02 8 Performance Highlights for Q1 FY25 Mutual fund Equity Individual Total QAAUM1 MAAUM3 PAT QAAUM1 Revenue ₹ 3,52,542 crore ₹ 1,62,129 crore ₹ 1,85,681 crore ₹ 481 crore ₹ 236 crore Market share Market share2 4.7% ↑ 24% Y-o-Y ↑ 24% Y-o-Y ↑ 28% Y-o-Y 6.7% Mix 46.0% Monthly SIP4 flows Serviced 9.4 mn folios ₹ 1,367 Crore for June-24 as of June-24 39% Y-o-Y 29 1.For Q1 FY25. 2. Excluding ETF share, 3. For June 2024 4. Includes STP Strong growth in AUM… Mutual fund closing assets under management1 Total quarterly average assets under management1 19% y-o-y 18% y-o-y 2,98,493 3,51,890 3,45,837 3,67,607 3,11,995 3,08,424 879 887 14,187 46,614 922 13,241 34,949 54,597 53,675 10,564 49,739 1,35,695 57,057 1,26,084 1,35,816 1,29,956 1,21,674 1,21,256 1,69,582 1,62,129 1,23,144 1,50,962 1,52,014 1,18,623 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 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 Equity MF mix of 48.2% Equity MF mix of 46.0% 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 24% y-o-y 30% y-o-y ₹ Crore SIPs (Mn) % Count of Total SIPs 64,208 1,367 4.05 94% 1,85,681 87% 1,50,085 49,343 987 3.26 Jun-23 Jun-24 Jun-23 Jun'24 Over 5 Over 10 Jun-23 Jun-24 Jun-23 Jun-24 years years 31 1 Includes STP 2 Based on tenure at the time of registration of all live SIPs as on June 30, 2024 Growth in passives and alternative investments Passive AUM1 INR 29,943 Cr ~7,53,000 Rank 1 Mar-2024 Investor Folios Serviced In Debt Index2 Mar-2021 6x growth since Jun-21 INR 2,090 Cr ↑ 14x INR 29,943 Cr ETF AUM Index AUM FOF AUM 44 Extensive product bouquet INR 921Cr ↑8x INR 7,366 Cr INR 404 Cr ↑50x INR 20,385 Cr INR 765 Cr ↑3x INR 2,192 Cr 3x growth since June 2021 AUM3 AUM3 AUM3 PMS / AIF ₹ 3,368 crore Offshore ₹ 11,207 crore Real Estate ₹ 491 crore Fund raising underway Fund raising underway Fund raising underway ABSL India Special Opportunities Fund (CAT III AIF) ABSL Global EM* Equity Fund (IFSC) Aditya Birla Real Estate Credit Opportunities Fund (Cat II AIF) (Global Equity FoF AIF) domiciled in GIFT City Series 2 (CAT II AIF) ABSL Index Linked Fund (IFSC) (CAT III AIF) PRODUCT IN PIPELINE Aditya Birla Real Estate Credit Opportunities Fund Investing in METYS Index linked Notes issued by HSBC Bank Plc ABSL Structured Opportunities Fund (CAT II AIF) (Cat II AIF) ABSL Money Manager Fund (CAT II AIF) ABSL India Opportunities Fund Fully deployed and one exit concluded Fixed Income Fund domiciled in Cayman Islands investing in Indian Issued Dollar Bonds PRODUCT IN PIPELINE ABSL India ESG Engagement Fund (IFSC), ABSL Flexi Cap Fund (IFSC), ABSL Global Bluechip Fund (IFSC) 1Closing AUM for ETFs/FoFs/Index Funds; 2 Based on Average AUM for the quarter ending June 30,2024 ; 3 Avg AUM for Q1 FY25 32 *Emerging Markets Pan-India distribution network Continue to expand distributor base and empaneled 2,400 + new MFDs in Q1 FY25 300+ Locations 83,000+ 90 95+ 330+ 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% 10% 9% 9% 17% 17% 16% 20% 20% 20% 32% 34% 33% Bank Bank National Distributor 54% 53% 54% National Distributor MFDs MFDs 42% 41% 43% Direct Direct 16% 18% 17% Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 33 (1) Excluding ETF Digital Ecosystem PARTNER APP Lead and Drop CAMS OTM will ABSL MF cart nurturing One click SIP Registration be taken for SIP ABSL MF Partner using Voice BOT via UPI auto pay Partner easy Link Customer Portal / Transaction Partner Portal App E KYC Investor Partner ARN hardcoded Investor Active Savings App Partner App Assets Assets App Digitization & AI /ML Assisted Real Time KYC stack for Salary SIP API API Active Savings Data Structuring Decisioning & Personalization Resident Indian & NRI Gateway Gateway App 34 P&L - Aditya Birla Sunlife AMC (₹ crore) FY24 Q1 FY24 Q4 FY24 Q1 FY25 Revenue from Operations 1,353 311 366 387 Costs 632 149 173 177 Operating Profit 721 162 193 210 Other Income 287 78 75 95 Profit before tax 1,008 240 268 305 Tax 228 56 59 69 Profit after tax 780 185 208 236 Mutual fund AAUM 3,12,764 2,96,937 3,31,709 3,52,542 Mutual fund equity AAUM 1,34,206 1,18,623 1,52,014 1,62,129 Alternate assets equity AAUM 11,919 10,564 13,241 14,187 Total equity AAUM 1,46,125 1,29,188 1,65,255 1,76,316 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 Q1 FY25 Individual Group Total FYP AUM Net VNB2 FYP1 Premium ` 644 cr ` 1,498 cr ` 3,986 cr ` 90,682 cr 6.5% ↑ 19% Y-o-Y ↑ 41% Y-o-Y ↑ 28% Y-o-Y ↑ 22% Y-o-Y ↓ ~500 bps Y-o-Y PASA contribution at 37% Renewal Premium ↑ 17% Opex ratio3 19.9% 38 1.Single premium @ 10% 2.Individual + Group Risk 3.Opex to total premium Premium growth Individual FYP1 Group New Business Premium Private Private ABSLI Industry ABSLI Industry Players Players Y-o-Y 19% Y-o-Y 24% Y-o-Y 20% Y-o-Y Y-o-Y 41% Y-o-Y 7% Y-o-Y 25% Y-o-Y ` crore ` crore 644 1,498 540 409 1,062 885 Jun’22 Jun’23 Jun’24 Jun’22 Jun’23 Jun’24 ABSLI Market ABSLI Market 4.5%(LYSP 4.7%) 10.8%(LYSP 8.1%) Share2 Share2 33% Y-o-Y growth in proprietary channel Strong Growth in fund business and 100% Y-o-Y growth in direct channel Credit Life segment 39 1. Individual FYP adjusted for 10% of single premium 2. Market Share among private players Source IRDAI Diversified and scaled up distribution mix… 4,300+ 380+ 56,000+ 111 25,000+ Cities Own Branches Agents Banca Tie-ups Bank Branches Strong growth across channels Channel Mix Product Mix by Channel (Q1 FY25 FYP ` In Cr) (Q1 FY25) Proprietary Partnership Protection Traditional ULIP 33% 5% 2% 36% 36% 40% 65% 67% 11% 64% 64% 60% 260 384 30% 31% Proprietary Partnerships Q1 FY23 Q1 FY24 Q1 FY25 Proprietory Partnership … with increasing mix of proprietary channels 40 1. Axis Bank, Bank of Maharashtra, Bharat Bank , DB, DBS, DCB, HDFC Bank, Indian Bank, IDFC First Bank, KVB & Ujjivan Value Accretive Products Product Mix Protection VNB1 Traditional ` crore ULIP 3% 3% 3% 2.5% 23.0% 11.8% 20.2% 6.5% 18%+ 71% 67% 800 81% 697 78 52 12 26% 30% 16% Q1 FY23 Q1 FY24 Q1 FY25 Q1 FY23 FY23 Q1 FY24 FY24 Q1 FY25 FY25E ❖ Subject to interest rate scenario, maturity and ❖ Salaried Suraksha Plan + Critical Illness Rider ❖ Pre-Approved Sum Assured (PASA) contribution survival benefits are appropriately hedged through stands at 37% of FYP in Q1 FY25 against 19% in forward rate agreements ❖ Life coverage along with market linked Q1 FY24 growth ❖ Guarantees are actively monitored and ❖ 32% Upsell contribution of Individual FYP in Q1 ❖ Covers up to 64 critical illness FY25 against 27% in Q1 FY24 counterparty risk is managed through multiple parties 41 Strong digital adoption… Customer Customer Self Pre-Approved Onboarding 100% Digital Renewal 78% Servicing 93% New Business 37% Customer Experience Customer Retention Customer Centricity Pre-Purchase 100% New business Digital collection at 78.1% WhatsApp & Chatbot PASA1 contributed 37% processed digitally contributed 14.8% in Q1 of Q1 FY25 (Q1 FY24 - FY25 19%) 67% adoption for 91% Auto pay adoption 83% services available 29.3 lakh presentations Contactless Digital digitally and 67% Created (+29% over Q1 at onboarding stage Verification (Insta – services are STP FY24) & 1.34 lakh verify) for customers Marketing Content Shared (+13% over Q1 ZARA (Bot) collected ~ FY24) 49.4% of total ` 142.4 Cr. application were Auto Digital Adoption share of Monthly Average under written 92.6% Users: 33,800 (+21% over Q1 FY24) & Daily Average Users: 7,900 (+44% over Q1 FY24) 42 1. Pre-approved sum assured …leading to consistent improvement in persistency and productivity Total Renewal Premium Persistency1 Opex Ratio2 ( ` crore) Renewal Growth Digital Renewal Improving Persistency across all Controlled Operating expenses cohorts ↑ 17% 14% Y-o-Y 78% 77%3 Q1 FY25 Q1 FY24 Q1 FY23 Δ 2Y 14% - 2Yr CAGR 88% 3% 20.9% 20.9% 13 M 87% 19.9% 85% 1,681 76% 25 M 1,441 73% 5% 1,285 71% 68% 2% 37 M 66% 66% Q1 FY23 Q1 FY24 Q1 FY25 66% 15% 61 M 57% Q1 FY23 Q1 FY24 Q1 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 90,682 3% Debt 74,500 25% Equity 60,660 25% 75% 74% 76% 24% 26% 25% Jun’22 Jun’23 Jun’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 22% in AUM vis-à-vis Q1 6.3% 6.9% 12.3%13.0% 25.4% 28.3% 5.5% 6.4% 8.5% 8.8% FY24 13.7% 16.7% 95.57% of debt investments are AAA rated or sovereign instruments 1 yr 5 yr 1 yr 5 yr 1 yr 5 yr as of Jun 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 Q1 FY24 Q4 FY24 Q1 FY25 Individual First year Premium1 3,546 602 1,316 807 Group First year Premium 4,554 1,062 1,506 1,498 Renewal Premium 9,160 1,441 3,337 1,681 Total Gross Premium 17,260 3,105 6,159 3,986 Operating expenses (Incl. Commission) 3,191 650 1,004 795 Profit Before Tax2 198 20 83 21 Profit After Tax2 132 11 61 10 Key ratios (in percent) FY24 Q1 FY24 Q4 FY24 Q1 FY25 Opex to Premium (Incl. Commission) 18.5% 20.9% 16.3% 19.9% Solvency Ratio 178% 180% 178% 172% 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 top line at 20%+ CAGR over the next three years and sustain VNB margin at 18%-20% 46 Aditya Birla Health Insurance 47 Performance Highlights for Q1 FY25 Market Combined GWP1 Share PBT Ratio ` 1,041 crore 12.5% SAHI ` (51) crore 112% 11.6% LY (62) Crore 118% ↑ 35% Y-o-Y ↑ 92 bps LY LY ▪ Fastest growing SAHI player ▪ 41% YoY growth in ▪ 70% YoY growth in App Proprietary business Monthly Average Users (MAU) ▪ 51% YoY growth in Retail Business ▪ 123% YoY growth in Digital ▪ 84% Digital renewals business 48 1.Gross premium of Health Insurance Scaled-up, diversified and digitally enabled distribution 5000+ 225+ 120K+ 18 5,700+ Cities Branches Agents Bank Sales Force Partners Channel Mix1 Product Mix Non-Metro GWP2 Proprietary 28% 27% Metro 26% 27% Indemnity 84% 80% 73% 69% Partnerships 72% 73% Non Metro 74% 73% Fixed Benefits 16% 20% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 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 Retail GWP (` Crores) +51% Proprietary 551 We continue to grow Growth at 41 % higher than the market… Focus on scaling Proprietary channel | Increase in Agent 146 count Q1 FY25 364 35% Highly Banca ABHI 174 Diversified 104 Growth at 35 % SAHI 25% distribution mix Deepened existing partner 128 100 relationships | Activating new partners Industry 17% 45 131 Digital 87 Q1 FY24 Q1 FY25 Growth at 123% Fastest growing player in Q1 Proprietary Digital Launched new products to amongst all SAHI players Banks CA/Brokers drive growth 50 1. Proprietary includes Agency, Direct business Differentiated Health First Model Know your health Improve your health Get Rewarded 1.4L+ 15 bn+ Health Monthly Assessments steps on App 1.3L+ Digital Health Assessment 1L+ High Risk customers 16.3L+ intervened Well-Being Scores ▪ 105+ Customer data points I 40+ Partners ▪ Higher Persistency by 9.3% & Lower Loss ▪ 6.6% eligible customers earned Health in Wellness Ecosystem ratio by 5% in the Intervened Cohort2 return ▪ 17.7% eligible customers earning Activ ▪ Upto 100% HealthReturnsTM (Return of ▪ 30.8%1 of customers administered Premium) Dayz Physical Health Assessment (HA) + DHA HA DHA Activ Dayz & Health Returns are on 12M rolling as of June’24. | WBS Count is for active customers as of June’24 | Persistency and Loss ratio data is as of June’24, | High 51 risk customer intervened is on ITD basis on Intervention completion basis. 1. Based on customers where WBS calculated 2. Intervened cohort Vs RHI lives 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 100% 109% 93% 0-0.5K Health Returns INR 100% 100% 80% 104% 104% 78% 102% Loss Ratio 100% Persistency 66% 0.5K-1K 80% 1K-2K 76% 2K-5K 63% 1 to 3 4 to 6 7 to 9 10 to 13 & 5K+ 68% 1 to 3 4 to 6 7 to 9 10 to 13 & 12 above 12 above Monthly Active Days Monthly Active Days Active Customers have shown better loss Customers earning HR have shown better Active Customers have shown better ratios than Inactive loss ratios than Non-Earners stickiness than Inactive 52 *Loss ratio indexed for base– Lives 12 month rolling High Risk Customer Intervention – Outcomes Risk Stratification (WBS) for 16.3L+ customers | 2.2L+ High Risk customers Identified | 1L+ High Risk Customers Intervened Improved Biometrics* Customer experience Financial Impact 45% 5% 22% Better loss ratio2 Blood Sugar Values Members doing in Intervened High-Risk Health Assessments 29% 9% 44% Better persistency2 Total Cholesterol Values Members Earning YoY Active Dayz ~2K 36% 14% Hospitalizations events prevented via Health Members Earning YoY Blood Pressure Values Coaching Health Returns (Rs. 14 Cr savings) * % of members reporting clinically improved lab values for intervened cohort *HA, AD & HR is on 12M rolling as of Jun’24 for active intervened customer *LR & Persistency is on 12M rolling as of Jun’24, *High risk customer intervened is on ITD basis *Hospitalization averted is on 12M rolling as of June’24 | 2 Compared to RHI lives Continuing Superior Customer Experience 96% Claim Settlement Ratio, One of the best in Industry 11k+ network hospital, One of the best in Industry NHCX claim processing 1st Wave Participant Top CX* Enhancement For DHA by FE Brandwagon Awards & thousands of similar stories… 54 CX- Customer Experience Activ Health App relaunched with Freemium features Simplify – Declutter Keep it Conversational Engage Before Selling Persona based experience Establish needs basis data Data based engagement score One-stop Solution for Health & Wellness needs Dental Tele – Consultation In-house built Native App Consultation Pharmacy 4.6 stars - Play Store rating Wearables 50+ Partner Ecosystem Diagnostics Activ Health App 100+ API Integration Condition Management Policy servicing Nutrition Activity AI/ ML, AR, Hyper personalised Mental Health Tracking 55 AI - Artificial Intelligence API - Application Programming Interface ML – Machine Learning AR – Augmented Reality Digital Revenue Engagement Digital Servicing Focus ▪ Freemium for client acquisition ▪ Leveraging Inhouse & Partner ▪ Simplified and contextual journey ▪ Simple, intuitive Buy Journeys Ecosystem ▪ Omnichannel bot Key Initiatives & Wins ▪ Digital capability to Cross Sell ▪ Hyper personalized engagement ▪ AI driven document classifier ▪ DIY Renewal Journey ▪ Leader boards and challenges 131% YoY App Downloads 70% YoY App MAU* 86% Digital