Max Financial Services Limited Investor Presentation November 2018 - PowerPoint PPT Presentation

Max Financial Services Limited Investor Presentation November 2018

Max Group Vision “To be the most admired corporate for service excellence” 2

Evolution of Max Group—Strong history of entrepreneurship and nurturing successful businesses Max India demerged into Max India demerged into NYL exits and JV with NYL exits and JV with Fund raising ~ USD 360 Mn Fund raising ~ USD 360 Mn 3 listed hold cos 3 listed hold cos MSI in 2012 MSI in 2012 ● QIP- USD 156 Mn in 2007 ● QIP- USD 156 Mn in 2007 Enters Telecom in JV Enters Telecom in JV ● MSI is world’s 7th largest ● MSI is world’s 7th largest with Hutchison with Hutchison ● Warburg Pincus - 53 Mn in 2005 ● Warburg Pincus - 53 Mn in 2005 general insurance group general insurance group ● IFC- 47 Mn(2007) &23 Mn (2009) ● IFC- 47 Mn(2007) &23 Mn (2009) Hutchison ● MSI acquired 26% stake for ● MSI acquired 26% stake for USD 425 Mn USD 425 Mn ● Goldman Sachs 82 Mn in 2011 ● Goldman Sachs 82 Mn in 2011 JV with Gist Brocades JV with Gist Brocades ● Max Life valued at USD 1.6 ● Max Life valued at USD 1.6 (Asia’s largest Drug (Asia’s largest Drug bn bn manufacturer ) manufacturer ) 2015 1985 1993 2000 2011 2012 2013 2014 2005 2007 2009 2016 Forays into Forays into Landmark Acquisitions Landmark Acquisitions LHC inducted as JV LHC inducted as JV Penicillin Penicillin by MHC by MHC Partner in MHC Partner in MHC bulk pharma bulk pharma ● Acquired 79% stake for ● Acquired 79% stake for ● LHC is 2 nd largest hospital ● LHC is 2 nd largest hospital Enter Senior Enter Senior USD 40 Mn in 340 bedded USD 40 Mn in 340 bedded Life Insurance, Life Insurance, chain in South Africa chain in South Africa Health Health Living business, Living business, Pushpanjali hospital Pushpanjali hospital Insurance, Insurance, ● 2012 - Acquired 26% stake ● 2012 - Acquired 26% stake Shift from B2B to Shift from B2B to JV with NYL JV with NYL launch first launch first expandable upto 540 beds expandable upto 540 beds for USD 81 Mn in MHC for USD 81 Mn in MHC B2C businesses: B2C businesses: community in community in JV with Bupa JV with Bupa ● Acquired 51% stake for ● Acquired 51% stake for ● 2014 - Equalize stake in ● 2014 - Equalize stake in Dehradun with Dehradun with USD 100 Mn in 230 USD 100 Mn in 230 ● Life insurance ● Life insurance MHC invests USD 120 Mn MHC invests USD 120 Mn 200 units 200 units bedded Saket City bedded Saket City ● Healthcare ● Healthcare hospital, expandable upto hospital, expandable upto 1200 beds 1200 beds ● Clinical research ● Clinical research 3 Note: USD rate considered at 64

Max Group – Corporate Structure Max Group ‐ Sponsors Max Group ‐ Sponsors 30.3% 41.0% 47.2% Companies Holding Real Estate, Life Insurance Health & Allied Manufacturing & Business Business Other businesses 50% 51% 70.75% Operating Companies 51% 100% 100% 100% 100% Group CSR Arm Sponsors stake in Max Group holding companies 4

Max Group – Senior Management Rahul Khosla • Group President • Chairman, Max India Limited • Executive President, Max Financial Services • Chairman, Max Healthcare Institute Ltd Mohit Talwar Rajesh Sud • Managing Director, Max India Limited • Executive Vice Chairman & MD, Max Life Insurance • Managing Director, Max Financial Services (upto December 31, 2018) • Vice-Chairman, Max Ventures and Industries Ltd • Chairman, Max Bupa Health Insurance Co Ltd & • Chairman, Max Specialty Films Max Skill First ( upto March 31, 2019) Rajit Mehta Prashant Tripathy (with effect from Jan 1, 2019) • MD & CEO, Max Healthcare • MD & CEO, Max Life Insurance Tara Singh Vachani Sahil Vachani • MD & CEO, Antara Senior Living • MD & CEO, Max Ventures and Industries Limited • Director in Max India & Max Healthcare • Director in Max Financial & Max Life Insurance Ramneek Jain Ashish Mehrotra • CEO, Max Specialty Films • MD & CEO, Max Bupa Health Insurance Mohini Daljeet Singh Rajender Sud • Chief Executive, Max India Foundation • CEO, Max Skill First Limited 5

Max Group Overview 1 USD 3 billion Revenues… 10 Mn Customers… 25,000 Employees… ~80,000 Agents Strong growth trajectory even in challenging times; a resilient & diversified business model 2 3 Steady revenue growth and cost rationalization leads to strong financial performance Well established board governance….internationally acclaimed domain experts inducted 4 Diversified ownership…..marquee investor base 5 Superior brand recall with a proven track record of service excellence 6 Strong history of entrepreneurship and nurturing successful business partnerships 7 6

Max Group : Continues to grow from strength to strength Group Revenue (USD Mn) 2,946 2,584 2,190 1,915 1,639 FY'14 FY'15 FY'16 FY'17 FY'18 Group EBITDA (USD Mn) 129 127 110 95 81 FY'14 FY'15 FY'16 FY'17 FY'18 Note: Adjusted for one ‐ offs for conversion assumed 1 USD = INR 65 7

High pedigree of long term investor base Shareholding concentrated with Marquee Investors  KKR  Baron Emerging Market Fund Shareholding Pattern as on 30 th Sep 18  Aberdeen Public  Vanguard 10.7%  Wasatch Promoter 30.3%  Jupiter FII ‐ Others 21.8%  Norway Government Pension Fund  Reliance Mutual Fund KKR 6.7%  ICICI Prudential Mutual Fund Mutual Funds  Motilal Oswal Mutual Fund 30.5%  HDFC Mutual Fund  Aditya Birla Sunlife Mutual Fund  Kotak Mutual Fund Number of outstanding shares : 26.84 Cr. 8

Max Life Insurance Company Limited

Key Summary Messages Indian Life Insurance Industry has evolved rapidly; significant headroom still 1 available for growth due to low penetration and favorable demographic profile Max Life is well positioned to leverage this opportunity with its eminent Board, 2 strong management team and robust governance framework We are a differentiated Life Insurer with key strengths of multi ‐ channel 3 distribution, balanced product mix, operational excellence and digital capabilities Max Life is one of the fastest growing players with equal emphasis on profitability 4 – Among the top quartile across the comprehensive measures of success Our operating RoEV of 20.6% and new business margin at 20.2% are amongst the 5 best in the industry Strength in business model recognised through several Awards and Accolades 6 that Max Life Insurance wins every year 7 Our target to grow Sales CAGR, RoEV and margins by over 25% by FY 21 10

Overview of Life insurance industry in India Phase 1 Phase 2 Phase 3 Joyful Entry (2001 ‐ 2003) Expansion (2004 ‐ 2008) Discovering New Normal (2009 onwards) 56% 57% 54% 52% 52% 50% 49% 46% 38% 38% 37% 36% Ind. Adj. FYP (First Year Premium) 34% (In Rs 000 Cr) 25% Private market share in 63 terms of Ind. Adj. FYP 15% 55 53 53 50 6% 48 47 47 45 2% 44 0% 41 40 21 16 13 12 12 10 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Growth: 2% 13% 17% 34% 92% 31% ‐ 10% 17% ‐ 8% ‐ 5% ‐ 3% ‐ 10% 8% 19% ‐ 3% 21% 19% Industry Growth: 24% 81% 100% 86% 1% 7% ‐ 20% ‐ 24% 2% ‐ 3% 16% 14% 26% >100% >100% >100% >100% Private Private 4 11 12 12 13 14 15 17 21 22 22 23 23 23 23 23 23 players count 11 Source: IRDAI and Life Council for FY 17 ‐ 18

Industry Landscape (Q1 FY’19 ): Max Life recorded strong growth (+15%) as compared to Industry growth (+6%) and Private growth (5%) YoY Growth basis Individual Adjusted FYP FY’17 FY’18 Q1’ FY18 Q1’ FY19 Private Industry 26% 45% 24% 5% YoY growth Industry Max Life 29% 25% 25% 21% 19% 19% 15% 6% Max Life’s private 9% 8% 9% 9% market share Max Life’s total 5% 4% 5% 5% market share Max life with continued focus on balanced product mix has grown by 15% in Q1 FY 19 and increased its market share. Source: Life Insurance Council | IRDAI Investor Release 12

Significant potential to expand both in savings and protection segment Life Insurance Penetration (Premium as % of GDP), 2017 Level of Protection (Sum Assured as % of GDP), 2015* 17.9% 260% 14.6% 226% ~ 16% increase ~ 10 Bps 149% from 2016 increase 6.6% from 2016 6.3% 96% 76% 2.8% 2.7% China India South Japan Hong Kong Taiwan Thailand India Malaysia Japan Singapore Korea % of Life Insurance in gross household savings ‐ India Life Insurance Density (Premium per capita – USD), 2017 6,756 25.0% 24.0% 17.0% 17.0% 17.0% 4,195 2,411 225 55 FY'13 FY'14 FY'15 FY'16 FY'17 India China Japan Taiwan Hong Kong Source: "Swiss Re: World Insurance in 2016“, “IRDA annual report FY 16 ‐ 17”, *As of FY 2018 for India and FY 2015 for others Investor Release 13