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ADITYA BIRLAFINANCIAL SERVICES

GROUP (ABFSG)

Consoli

Financia

in India

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Srinivasans

philosophy

Cradleto GraveProducts

Common

CustomerexperienceCommonEmployee

experience

Standardize Coreprocesses

EngagedWorkforce

andDevelopingLeadership

benchstrength

BSLIWay

focus on

right input,the outputwould take

care ofitself

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BRIEF INTRO TO THE INDIAFINANCIAL SECTOR

Highly regulatedin the past.

Gold & Physicalassets preferredmeans to save

Mutual funds,equities stillperceived as

lottery

Insurance by LICtrusted most

Insurance sectordominated by

non-linkedpolicies 0

10

20

30

40

50

60

70

80

India USA

Physical assets as a percensavings

Physical assets as a %

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LIFE INSURANCE IN INDIA

L I C Dominated by singlelarge player

Lifeinsurance

andsavingscoupled

The non linked plans

were dominant in themarket

Secure

Customers trustedLIC because ofgovernments implicitbacking

Industryliberalised in 1

Foreign players likeBNP Paribus, SunLife, Allianz, MitsuiSumitomo enteredthe market through

JVs

Penetration rahave increasedtapered, but stcompared to o

BRIC nationPre 99

Post 99

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MUTUAL FUNDS IN INDIA

1963

Unit Trust ofIndia created

1987

Public sectorentities startofferingmutual funds

1993

Governmentliberalisesand allowsprivatefunds tooperate

2002UTI at the

verge of

collapse

Mutual fundindustry 2012

AUM of $123billion

AUM is wellbelow globalaverage of

34% of GDP

ICICIPrudential,HDFC, Birla

Sun andReliance- TopFour Funds

The market isvery

competitive now

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ADITYA BIRLA FINANCIAL SERVICEGROUP (ABFSG)

Formed with the goal to make ABFSG a broad integrated financial institution that would be a leadmodel in the Indian financial landscape.

To transform the group from Product Peddler toProvider.

ABFSG included various businesses in its services poBirla Sun Life Insurance (BSLI)

Birla Sun Life Asset Management Company (BSLAMC)

Aditya Birla Finance

PE, Wealth management, currency broking and general insura

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BSLI

74:26 joint venturewith sun life financialof Canada

ULIPs: Life insurancewith a savings plan

Direct Sales force,Corporate agents &brokers

26%-65%commission on first

year premiums ICICI, HDFC, SBI lifeinsurance; maincompetitors

Lack of extensivenetwork

BSLAMC

50:50 joint venturewith sun life ofCanada

Sells through banks,broker distributors,independent financialadvisors & internet

AB financ

Founded in 199

Started by against securitIPO financing

Customized sofor small & menterprises

In 2013, 2ndcontributor to Arevenues & pro

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MANAGEMENT ANDORGANIZATIONAL CHANGE

Lowest cost obranch personn1.3/branch

Quality of policpersistency inc

83%Active agents/amanager up by

Premium collecmanager up by

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MANAGEMENT ANDORGANIZATIONAL CHANGE

Mutual Fund Hyear in 2007 & 2

Market share of A9.7% by 2012

More than 4 fold

BSLI branch officagentso Issue: Very hig

Different produconsumer rangproduct peddle

provider

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CHALLENGES AHEAD

Fast evolving Regulatory Changes

The Competitive Environment

Traditional Indian investor mind set for prefer

real estate, bank deposit and Gold.Dedicated Workforce and Leadership bench s

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REGULATORY CHALLENGES

Abolition of Entry Load2009IRDA announced major overhaul for ULIPS

Minimum lock-in increased from 3 to 5 years

Min premium payment tenure of 5 years distributed premiums

Min life insurance component of ULIPs fixed

Charges capped at 4% - impacting agents cthus motivation

Early surrender fee regulated

Just 3 months given to switch practices

2010

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BANKING LICENSE

December 2012: Govt. liberalised banking regulations

Foreign investment limits increased from 10% to 26%

RBI given power to issue new bank licenses

Banks are becoming increasingly important for our distribution channe

Will augment cradle to grave product mix philosophy

But can we utilise our scale advantages for banking business

SHOULD WE BID