PERFORMANCE HIGHLIGHTS 2018-19 Sundaram Ring of Excellence G rowth - - PowerPoint PPT Presentation

PERFORMANCE HIGHLIGHTS 2018-19

Sundaram Ring of Excellence

Growth Quality Profitability

• Disbursements for the year 2018-19 up by 9.3% to ₹ 17170 Cr.
• Net Profit for the year at ₹ 1126 Cr., including an amount of ₹ 522 Cr. towards exceptional income on account of sale of

shares in Royal Sundaram.

• Assets Under Management up by 16.1% at ₹ 28984 Cr.
• Stage III Assets stood at 1.33% and net of ECL provisions at 0.83% compared to 1.27% and 0.66% in the previous year.
• Capital Adequacy Ratio at 19.5%, Tier-I at 14.7%.
• Dividend for the year 175%, including special dividend of 50%.

In this presentation, the figures for FY 2019 and FY 2018 are as per Ind AS, while FY 2017 is as per Previous GAAP.

Shareholding Pattern

40.4% 36.5% 9.8% 11.6% 1.7% Public Promoters Mutual Funds & AIFs FIIs / FPIs and NRIs Banks, Financial Institutions & Insurance Companies

31-Mar-18

43.6% 36.0% 10.0% 8.6% 1.8%

31-Mar-19

Financial Summary

₹ in Crore

Year Paid-up Capital Networth Disbursements Receivables Under Management PAT Dividend % Market Capitalisation 2008-09 55.55 1153 4614 9204 150.73 65 917 2009-10 55.55 1316 5926 10219 226.75 100 2096 2010-11 55.55 1530 7592 12354 295.23 140 2722 2011-12 55.55 1789 9433 15540 355.45 155 3645 2012-13 * 111.10 2087 9991 17645 410.11 90 5265 2013-14 111.10 2405 9719 18158 442.51 100 7359 2014-15 111.10 2978 10012 18734 454.14 105 16859 2015-16 111.10 3313 11444 20699 477.28 110 14450 2016-17 111.10 3746 13218 24036 ** 495.35 115 17940 2017-18 111.10 4134 15712 28648 563.44 120 18634 2018-19 111.10 5044 17170 33447 @ 603.86 # 175 17318 * Increase in Capital by way of 1:1 bonus issue. ** Adjusted for demerger ₹ 460.57 Cr. # Includes special dividend of 50%. @ Excludes exceptional item Market Capitalisation is as on 31st March of the respective years.

Profit & Loss Statement

₹ in Crore

Particulars Quarter Ended March 2018 Quarter Ended March 2019 2017-18 2018-19 Revenue From Operations *

778.04 872.16 2763.30 3362.12

Other Income

19.44 7.16 49.13 20.56

Total Revenue

797.48 879.32 2812.43 3382.68

Finance cost

390.54 474.83 1346.02 1762.51

Operating expenses

167.08 138.33 531.19 617.57

Impairment on financial instruments

32.55 42.61 85.51 107.33

Total Expenses

590.17 655.77 1962.72 2487.41

Profit Before Taxation and exceptional item

207.31 223.55 849.71 895.27

Exceptional Item **

• 592.44
• 592.44

Profit Before Taxation (After exceptional Item)

207.31 815.99 849.71 1487.71

Profit After Taxation and exceptional item

137.93 674.75 563.44 1126.31

Other Comprehensive Income (net of taxes)

(0.51) 1.74 (1.51) 2.77

Total Comprehensive Income for the period year

137.42 676.49 561.93 1129.08

* Revenue from operations is net of depreciation on operating lease **Exceptional item represents, sale of 11,62,91,000 equity shares of ₹ 10/- each (representing 25.90% stake) in Royal Sundaram General Insurance Co. Limited (RSGI) for a consideration of ₹ 984.17 Crore to Ageas Insurance International N.V, The Netherlands. The profit is net of transaction expenses and provisions towards certain financial covenants, whereby the company has agreed to indemnify the buyer. Subsequent to the transaction, the company holds 50% in the equity share capital of RSGI, resulting in RSGI becoming a Joint Venture company with effect from 22nd Feb 2019.

Balance Sheet

₹ in Crore

Particulars 31-Mar-2018 31-Mar-2019 EQUITY AND LIABILITIES Financial Liabilities 21597.86 25530.90 Non Financial Liabilities 79.21 74.46 Equity 4133.63 5043.81 Total - EQUITY AND LIABILITIES 25810.70 30649.17 ASSETS Financial Assets 25222.96 30079.48 Non Financial Assets 587.74 569.69 Total - ASSETS 25810.70 30649.17

Profit Reconciliation

₹ in Crore Particulars Quarter ended March 2018 2017-18 Profit as per previous GAAP 129.57 532.95 Adjustments increasing / (decreasing) net profit after tax as reported in the previous GAAP: Amortisation of net income under EIR method for financial assets 2.98 22.52 Amortisation of expenses under EIR method for financial liabilities 2.16 3.73 Application of Expected Credit Loss method for loan loss provisions (9.58) 2.76 Financial assets / liabilities measured at Fair Value through Profit & Loss 6.64 14.68 Impact on recognition of securitised loan portfolio 0.42 1.56 De-recognition of Financial asset 5.98 (5.39) Re-measurement of defined benefit plan 0.77 2.32 Others 0.13 0.75 Tax adjustments on above items (1.14) (12.44) Net Profit after tax as per Ind AS 137.93 563.44 Other Comprehensive income (net of taxes) (0.51) (1.51) Total Comprehensive income as per Ind AS 137.42 561.93

Equity Reconciliation

₹ in Crore Particulars 31-Mar-2018 01-Apr-2017 Equity as per previous GAAP 3970.85 3745.63 Impact due to Scheme (demerger and merger) (228.73) Adjusted Equity as per previous GAAP 3970.85 3516.90 On application of Effective Interest Rate method Financial assets 72.20 49.68 Financial liabilities 15.16 11.42 Impact on account of Expected credit loss 96.71 93.95 Financial assets / Liabilities measured at Fair value through Profit & Loss 14.56 (0.11) Impact on recognition of securitised loan portfolio 1.56 Derecognition of Financial asset 23.19 28.59 Others 2.10 1.35 Tax impact on above adjustments (62.70) (51.07) Equity as per Ind AS 4133.63 3650.71

Disbursements and AUM

₹ in Crore

Growth 13218 15712 17170

15.5% 18.9% 9.3%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

7000 9000 11000 13000 15000 17000 19000 2016-17 2017-18 2018-19

Disbursements

Growth 75.2% 89.4% 95.2% 24.8% 10.6% 4.8% 20735 24964 28984 15.9% 20.4% 16.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

10000 15000 20000 25000 30000 35000 31-Mar-17 31-Mar-18 31-Mar-19

AUM

On Books Securitised

Disbursements

53.7% 24.6% 11.2% 5.3% 5.2%

2018-19

CVs Cars Construction Equipment Tractors Others

₹ 17170 Cr. r.

51.9% 29.2% 9.9% 4.9% 4.1%

2017-18

CVs Cars Construction Equipment Tractors Others

₹ 15712 Cr. r.

Asset wise

65.6% 19.2% 11.6% 3.6%

South North West East

₹ 17170 Cr. r.

Region wise

64.6% 19.4% 12.5% 3.5%

South North West East

₹ 15712 Cr. r.

AUM

52.5% 25.9% 9.7% 5.3% 6.6%

31-Mar-2019

CVs Cars Construction Equipment Tractors Others

₹ 28984 Cr. r.

52.0% 28.8% 8.4% 5.0% 5.8%

31-Mar-2018

CVs Cars Construction Equipment Tractors Others

₹ 24964 Cr. r.

Asset wise

65.3% 18.8% 12.4% 3.5%

South North West East

₹ 28984 Cr. r.

Region wise

64.9% 18.6% 13.1% 3.4%

South North West East

₹ 24964 Cr. r.

Funding Mix

34.1% 7.0% 28.2% 12.4% 18.3% 36.7% 19.9% 24.2% 10.9% 8.3% 39.2% 25.4% 20.4% 11.6% 3.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Debentures Bank Borrowings * Securitisation Deposits Commercial Paper 31-Mar-2017 31-Mar-2018 31-Mar-2019 Total Borrowing 31-Mar-2017 31-Mar-2018 31-Mar-2019 ₹ 19373 Cr. ₹ 24085 Cr. ₹ 26673 Cr.

* Includes a) Term loans b) Commercial Papers and demand loans availed from the limits.

Key Ratios

EPS (₹)

44.58 50.71 54.35

₹ in Crore

Book Value (₹)

337.13 372.05 453.96

495 563 604

0.2 0.4 0.6 0.8 1 1.2

400 450 500 550 600 2016-17 2017-18 2018-19*

PAT

3746 4134 5044 14.0% 14.5% 13.2% * 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 1500 2000 2500 3000 3500 4000 4500 5000 5500 31-Mar-17 31-Mar-18 31-Mar-19 Net worth ROE

* Adjusted for exceptional item * Adjusted for exceptional item

Key Ratios

* Assets includes securitised / assigned portfolio

3.7 5.1 5.0 17.9% 18.0% 19.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 31-Mar-17 31-Mar-18 31-Mar-19 Debt Equity CAR 36.9% 35.1% 36.5% 2.18% 2.16% 2.00% # 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 25.0% 27.0% 29.0% 31.0% 33.0% 35.0% 37.0% 39.0% 2016-17 2017-18 2018-19 Cost to net Income ROA *

# Adjusted for exceptional item

Portfolio Quality

1.54% 1.27% 1.33% 0.55% 0.66% 0.83% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 31-Mar-2017 31-Mar-2018 31-Mar-2019 Gross NPA % Net NPA %

For Mar 2018 & Mar 2019 - Gross & Net NPA corresponds to stage 3 assets, calculated as per Expected Credit Loss model in line with Ind AS.

Instrument ICRA CRISIL Deposits AAA (Stable) AAA (Stable) Debentures AAA (Stable) AAA (Stable) Subordinated Debentures AAA (Stable) AAA (Stable) Long Term Loans AAA (Stable) AAA (Stable) Working Capital Facilities AAA (Stable) Commercial Paper A1+ A1+ Short Term Loans A1+

Credit Ratings

Branch Network

366 155 66 35 387 161 68 42

South North West East

• No. of Employees : 4055
• No. of Employees : 3880

31-Mar-18

• No. of Branches : 658
• No. of Branches : 622

31-Mar-19

Subsidiaries, Joint Ventures & Associates

Subsidiaries Sundaram Finance Holdings Limited Sundaram Business Services Limited Sundaram Asset Management Company Limited Sundaram Asset Management Singapore Pte. Limited Sundaram Trustee Company Limited Sundaram Alternate Assets Limited LGF Services Limited Joint Ventures Royal Sundaram General Insurance Co. Limited Sundaram BNP Paribas Home Finance Limited Sundaram BNP Paribas Fund Services Limited Associates Axles India Limited Turbo Energy Private Limited Transenergy Limited Sundaram Dynacast Private Limited Sundaram Hydraulics Limited Flometallic India Private Limited Dunes Oman LLC (FZC)

Consolidated Results

₹ in Crore

EPS (₹) 61.52 75.90 113.27 Book Value (₹) 432.86 716.12 719.88

683 843 1259 250 450 650 850 1050 1250 1450 2016-17 2017-18 2018-19

PAT

4809 7956 7998 1000 3000 5000 7000 9000 31-Mar-17 31-Mar-18 31-Mar-19

Net Worth

Consolidated Results

₹ in Crore

Particulars Share of Net Worth Share in Profit 31-Mar-2018 31-Mar-2019 31-Mar-2018 31-Mar-2019 Sundaram Finance Ltd. 4133.63 5043.81 563.44 1126.31 Subsidiaries: Royal Sundaram General Insurance Co. Ltd 755.71

• 57.08
• Sundaram Finance Holdings Ltd. (Consolidated)

744.29 626.22 34.32 36.39 Sundaram Asset Management Company Ltd. (Consolidated) 177.25 197.94 31.02 28.84 Sundaram Trustee Company Ltd. 1.60 1.80 0.85 0.80 LGF Services Ltd 4.18 3.67 0.34 0.25 Sundaram Finance Employees Welfare Trust 11.97 13.86 0.78 1.89 Minority Interests in Subsidiaries 2307.07 1738.91 113.41 97.65 Joint Control Entities Sundaram BNP Paribas Home Finance Ltd 587.52 639.21 72.36 72.88 Royal Sundaram General Insurance Co. Ltd

• 551.12
• 56.63

Sundaram BNP Paribas Fund Services Ltd 14.95 10.52 (0.07) (4.43) 8738.17 8827.06 873.53 1417.21 Adjustment arising out of Consolidation (781.85) (828.87) (30.21) (158.71) Total 7956.32 7998.19 843.32 1258.50

Sundaram BNP Paribas Home Finance

# as per prudential norms

₹ in Crore Particulars 31-Mar-2018 31-Mar-2019 Disbursements 2626 2449

• Housing

63% 69%

• Non-Housing

37% 31% AUM 8358 9064

• Housing

69% 70%

• Non-Housing

31% 30% PAT 144 146 EPS (₹) 14.26 14.37 Net worth 1149 1252 Book Value (₹) 113.46 123.66 Gross NPA # 3.27% 2.95% Net NPA # 1.09% 0.94% CAR # 24.3% 23.5% Branches 112 115 Employees 746 755

Royal Sundaram

Particulars 31-Mar-2018 31-Mar-2019 Gross Written Premium 2643 3196 PAT 75 113 Net worth 996 1102 Combined Operating Ratio 109% 108% Employees 1955 2105 ₹ in Crore

Sundaram Asset Management

₹ in Crore Particulars 31-Mar-2018 31-Mar-2019 Average AUM 35,982 34,111

• Equity

19,512 22,337

• Debt

16,470 13,054 PAT 31 29 Net worth 177 198 Employees 328 354 Retail Investors 11,22,438 11,87,512

Share Price Movement

In ₹

1279 1301 1524 1330 1150 1615 1608 1686 1878 1677 * 1600 1514 1439 1559 7850 7738 8288 8611 8186 9174 9521 9789 1053110114 107141093010863 11624 5000 7000 9000 11000 13000 15000 17000 500 700 900 1100 1300 1500 1700 1900 Apr-16 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 S & P CNX Nifty SFL Closing Share Price SFL Closing Share Price S & P CNX Nifty

* Share price movement after 1st Feb 2018 is post demerger

Name of the Director Expertise Qualification Sri S Viji Chairman Has over 5 decades of experience in Banking, Finance, Insurance and Automotive Component Manufacturing Industry. He is the Chairman

• f Sundaram BNP Paribas Home Finance Limited and Managing

Director of Brakes India Private Limited. B.Com, ACA, MBA (University of Michigan, USA) Sri S Ram Has over 5 decades of work experience in Vehicle and Component Industry . He is the Chairman of Wheels India Ltd., Axles India Ltd and India Motor Parts & Accessories Ltd. BE (Mechanical), MS (Production Engineering) (Birmingham University, UK) Sri Raghuttama Rao Raghavendra Has over 3 decades of work experience spanning Manufacturing, Financial Markets, Public Policy and Management Consulting.

B.Tech. (Mech. Engg.) – IIT Madras, CMA – ICWAI, P.G.D.M.

• IIM Ahmedabad

Sri P N Venkatachalam Has nearly 4 decades of experience in Banking, Finance and Capital

• Markets. Formerly Managing Director of State Bank of India.

MA (Economics), CAIIB Sri S Mahalingam 4 decades of experience in Finance and Information Technology. Formerly Chief Financial Officer and Executive Director of Tata Consultancy Services. B.Com (Honours), FCA Sri S Prasad Has more than a decade experience in industry as finance professional and 37 years as a practicing Chartered Accountant. FCA

Board of Directors as on 30.05.2019

Name of the Director Expertise Qualification Sri S Ravindran 4 decades of experience in Finance and Engineering. He is a Whole Time Director of Turbo Energy Private Limited. B.Com, ACA Ms Shobhana Ramachandhran 3 decades of experience in General Management and automobile

• industry. She is the Managing Director of TVS Srichakra Limited.

MA (English Literature) Sri Rajiv C. Lochan Has two decades of experience in the field of management especially in the areas of finance, social sector, and public health. He is the Managing Director and CEO of Kasturi & Sons Limited. B.Tech. (IIT), MS (MIT), MBA (Columbia Business School) Sri T T Srinivasaraghavan Managing Director Has nearly 4 decades of experience in Banking and Financial

• Services. Has held various operational roles in the Company and

brings to bear in-depth knowledge of automotive financing. He is the Managing Director of the Company since 2003. B.Com, MBA (Gannon University, Pennsylvania) Sri Harsha Viji Deputy Managing Director Has more than a decade experience in areas of specialisation particularly, strategy formulation, joint venture negotiations, new business development. B.Com, ACA MBA (Ann Arbor, Michigan) Sri A N Raju Director (Operations) 3 decades of experience in the Automobile, Engineering, Finance and General Management. BSc (Engineering), MBA

Board of Directors as on 30.05.2019

Name Expertise Qualification Sri M. Ramaswamy Chief Financial Officer He has over 30 years of experience in the Company. He is the Chief Financial Officer of the Company from Sep

• 2011. He is responsible for the Treasury Management,

Financial Planning & Accounting, Taxation and Regulatory

• Compliance. He is a member of the Risk Management

Committee and Asset Liability Management of the Company. B.Sc. (Statistics), ACA Sri P. Viswanathan Company Secretary & Compliance Officer He has

• ver

40 years

• f

experience in the Company/Group. He became the Company Secretary and Compliance Officer of the Company from Sep 2011. He is responsible for statutory compliance in respect of all laws and regulations applicable to the Company, including Company Law, SEBI and RBI. He liaisons with the Board Members in connection with all Board related actions in the Company. He was Chairman of the Expert Committee

• n Company law of Madras Chamber of Commerce and

Industry and is a Committee Member of Finance Companies Association of India. B.Com, FCS

Key Managerial Personnel

Disclaimer

This document is for information purposes only and is not and does not form part of an invitation/ offer / advertisement / advise to purchase or sell any securities of the Company. The materials and information contained in the document are prepared by the Company and are correct and accurate, to the best of our

• knowledge. No information contained herein has been independently verified by anyone else or approved by any regulatory authorities.

No warranty is given as to their accuracy and the company does not accept any responsibility and shall not be liable for any direct or indirect loss caused, arising from and/or use of this document. Forward-looking statements, if any, are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant statement. The contents of the website are subject to changes and reviews from time to time without notice. By accessing the site, you are deemed to accept the disclaimer clause. Shri M Ramaswamy Chief Financial Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) : 044 – 28881341 Mail : m.ramaswamy@sundaramfinance.in Shri P Viswanathan Secretary & Compliance Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) : 044 – 28881207 Mail : pv@sundaramfinance.in