#1B FINSERV BAJAJ BAJAJ FINSERV LIMITED Investor Presentation - Q1 FY24* *Financial year 2023-24 Note: From Q1 FY23 Bajaj Finserv Limited has started reporting its numbers in Investor Presentation in Rs. Crores. Till FY22, the same was in Rs. Million.#234.19%2 Bajaj Auto Limited (Listed) Auto Business Arm Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) B FINSERV BAJAJ 39.12%¹ 51% Maharashtra Scooters Limited (Listed) Bajaj Finserv Limited (Listed) Financial Services Arm 52.45%³ 74% Bajaj Allianz General Insurance Bajaj Finance Limited (Listed)* Limited 74% Bajaj Allianz Life Insurance Limited Auto spare parts Manufacturer 80.13% 100% Bajaj Finserv Direct Limited Bajaj Finserv Health Limited 100% 100% Bajaj Housing Finance Limited Bajaj Financial Securities Limited 1. 2. 3. 60.79% holding via promoter holding & promoter group 54.99% holding via promoter holding & promoter group 55.87% holding via promoter holding & promoter group Apart from these, Bajaj Finserv (BFS) also has two other fully-owned subsidiaries - BFS Asset Management Company (Bajaj AMC, which has started operations and has launched its first fund in Q1 FY24) and BFS Ventures (BFSV) Bajaj Housing Finance Limited (BHFL) is a 100% subsidiary of BFL which became fully operational in Feb 2018. Bajaj Financial Securities Limited (BFSL) is 100% subsidiary of BFL which became fully operational in Aug 2019 Maharashtra Scooters Limited (MSL) is termed as an unregistered Core Investment Company. Note: Shareholding is as of 31 March 2023. 2#3Bajaj Finserv's Vision - A diversified financial services group with a pan-India presence Life cycle needs of Individual & SME customers Asset acquisition Income B BAJAJ FINSERV Asset protection Family, Health & Investment/ Wealth management Retirement Protection Loan (Personal, Home), Credit Cards General Insurance General, Health & Life Insurance - Guaranteed Savings, Digital access to health ecosystem ULIPS*, Fixed Deposits, Shares, Mutual Funds Annuities PRODUCTS & SOLUTIONS Bajaj Finance Limited (BFL) Bajaj Allianz Life Insurance Limited (BALIC) PLATFORMS Bajaj Finserv Direct Limited (BFDL) Bajaj Finserv Health Limited (BFHL) Bajaj Allianz General Insurance Limited (BAGIC) Bajaj Financial Securities Limited (BFSL) Diversified across products and markets, with a strong retail core Bajaj Finserv Asset Management Limited filed for its first 7 products with SEBI in Mar-23 and Apr-23. Its first 2 funds, Liquid and Overnight, were launched at the end of Jun-23 while the Money Market Fund NFO was launched in Jul-23 ■ BFS has also incorporated Bajaj Finserv Ventures Limited, a wholly owned subsidiary, which will focus on alternative investments *ULIPS - Unit Linked Investment Products 3#4Bajaj Finserv - Established businesses with strong track record B FINSERV BAJAJ Bajaj Finance Limited B FINSERV BAJAJ Non-Bank with strategy & structure of a bank Diversified financial services strategy with an optimal mix of risk and sustainable profit Focused on mass affluent & above with a strategy to cross-sell with smart use of data and analytics Focused on continuous innovation to transform customer experience and create growth opportunities Bajaj Allianz General Insurance B Allianz ⑪ BAJAJ Caringly yours Build a profitable & diversified portfolio of products & solutions with emphasis on multi-channel distribution, strong underwriting with stress on combined ratio & prudent financial management Drive the theme of "Caringly yours" on the foundation of customer obsession through innovations in customer experience Strive to be the best claims paying general and health insurer Bajaj Allianz Life Insurance B BAJAJ Allianz LIFE GOALS. DONE. Balanced product mix and diverse distribution network to deliver sustainable profitable growth with robust risk management Life Goal Enablers for customers through differentiated products Customer-centric strategy to deliver seamless, personalized experience simplified & Use of innovation & data analytics as a strategic differentiator for customers & sales partners 4#5Bajaj Finserv - Emerging Opportunities B FINSERV BAJAJ Bajaj Finserv Health Limited Health Tech venture - aims to transform healthcare sector in India Integrating the fragmented healthcare delivery ecosystem with technology and financial services on a digital platform to bring quality healthcare closer to consumers' reach through products, networks & Technology Introduced a suite of products and services for individuals and corporates, offering a wide range of personalized, preventive and prepaid healthcare packages such as OPD care, telemedicine, and other services. Bajaj Finserv Direct Limited BFSI marketplace (Bajaj Markets) to digitally source and distribute Financials products pan-India Technology services division (SKALEUP), wherein it offers digital technology services primarily in the BFSI domain. Attract new-to-Finserv customers by creating awareness and discovery of the Finserv brand in the digital medium Bajaj Financial Securities Limited* ☐ A digital stockbroker to provide Loan Against Securities (LAS) customers of BFL by offering them a full suite of investment products and services All-in-one digital platform combining demat, broking, margin trade financing for retail and HNI clients on a predominantly B2C platform *Bajaj Financial Securities Limited is 100% subsidiary of Bajaj Finance Limited which became fully operational in Aug 2019 5#6Role of Bajaj Finserv B FINSERV BAJAJ Monitor and engage with our companies with the objective of long-term sustainable profit, meaningful market share, and effective use of capital - thereby delivering superior shareholder returns We do this by driving companies to create institutionalized frameworks through accountable empowerment and encouragement of disruptive thinking Business ■ Rigorous engagement in Long Range Planning and Annual Operating Plans Regular review of all businesses and their SBUS ■ New business opportunities and Strategic investments CRO Chief Risk Officer ERM - Enterprise Risk Management ORM Operational Risk Management Risk ■ Harmonization of risk policies and framework, Regular engagement with CROS of business ■ Periodic review of top ERM risks including credit, business, financial, etc. operational, reputation, & mitigation actions planned ■ Drive risk related projects across the group such as ORM People / HR ■ One Finserv - Group Talent mobility Group Young Leader Management Trainee Program ■ 30 Under 30 Program ■ 3 Tier Merit based remuneration plans combining fixed cash, annual bonus and ESOPS Collaboration and Best Practice ■ Group Knowledge Forums - Analytics, Technology, Investments, Governance, etc. ■ Cross group stress identification forum to identify any cross functional view on investment risks ■ Cross Company projects on Data, innovation and digital strategy. Customer Experience, Investments, ESG ■ Defining Customer Service protocols for businesses ■ Review and standardisation of investment processes ■ Oversight and monitoring of ESG policy and its implementation across the group 9#7Bajaj Finserv performance highlights - Q1 FY24 23,280 CY B FINSERV BAJAJ Performance Highlights of Q1 FY24 over Q1 FY23 (Ind AS) All Figures in Rs. Crore 1,943 48,963 5,824 47% 48% 20% 23% PY 15,888 1,309 40,638 Total Revenue (Consolidated) PAT* (Consolidated) Net Worth (Consolidated) 4,739 Net Worth (Standalone) Bajaj Finserv remains a debt free company. Bajaj Finserv's surplus funds (Excluding Group Investments) stood at 2,094 crore as on 30 June 2023 v/s 1,432 crore as at 30 June 2022 and 1,709 crore as at 31 March 2023. Consolidated Book Value Per Share at 307 as on 30 June 2023 (230# as on 30 June 2022) PAT includes unrealized mark-to-market (MTM) loss on equity investments measured at fair value through profit and loss of BALIC and BAGIC of 30 Cr in Q1 FY24 as compared to MTM loss of 283 Cr in Q1 FY23. Ex-MTM impact, PAT growth stood at 24%. Note: *PAT attributable to owner of the company | # Adjusted for Stock Split and Bonus Issue in Q2 FY23 7#8Consolidated profit components - Q1 FY24 (BFS Share) Consolidated profit# components for Q1 FY24 (Ind AS) B FINSERV BAJAJ All Figures in Rs. Crore Adjustments (Net of Tax)# Intercompany adjustments Unrealized MTM* Loss on BAGIC Investments - 67 Cr Unrealized MTM* Gain on BALIC Investments - 37 Cr Bajaj Finserv- Standalone (568) Others¹ 404 Life Insurance (82) General Insurance 143 Bajaj Finance 242 1,804 1 Includes Bajaj Markets (13 Cr), eBH (39 Cr) and BFS AMC ( 30 Cr) Consolidated profit # components for Q1 FY23 (Ind AS) Adjustments (Net of Tax)# Intercompany adjustments Unrealized MTM* Loss on BAGIC Investments - 147 Cr Unrealized MTM* Loss on BALIC Investments - 136 Cr Bajaj Finserv- Standalone (323) Others² 233 Life Insurance (70) General Insurance (52) Bajaj Finance 158 1,363 2 Includes Bajaj Markets (25 Cr), eBH (43 Cr) and BFS AMC ( 3 Cr) # - Denotes impact considering BFS stake in respective companies | MTM - Mark to Market 1,943 Bajaj Finserv - Consolidated 1,309 Bajaj Finserv - Consolidated 8#9Q1 FY24 Highlights BAJAJ FINSERV# Total Revenue B FINSERV BAJAJ B FINSERV BAJAJ All Figures in Rs. Crore Highlights of Group Companies Q1 FY24 Q1 FY23 Growth BAJAJ FINANCE# Q1 FY24 Q1 FY23 Growth 23,280 15,888 47% AUM 2,70,097 2,04,018 32% Net worth PAT #Consolidated | Ind AS 48,963 40,638 20% Total Income 12,501 9,286 35% 1,943 1,309 PAT 48% 3,437 2,596 32% PPOP^ 5,546 4,258 30% Consoldiated Profit Components* BAGIC Q1 FY24 Q1 FY23 Growth GWP 3,834 3,119 23% Investments 28,611 5% 22% 2% 13% 12% 25,362 13% 7% 12% PAT 415 411 1% Combined Ratio 100.7% 104.6% 3.9%abs. 104% 94% 93% 81% BALIC Q1 FY24 Q1 FY23 Growth GWP 4,058 4,369 -7% -8% -9% -13% -12% -4% GWP excl Grp Fund 3,694 3,030 22% Investments 95,317 83,072 15% 2021-22 2022-23 Q1 FY23 Q1 FY24 PAT 155 124 25% BFL BAGIC BALIC Others* NBV & NBM ** 94 | 7% 135 | 11% -30%|-3%abs. BAGIC and BALIC figures are as per IRDAI Regulations (Indian GAAP) & the Indian Accounting Standard framework is used only for consolidated numbers ** NBV - Net New Business Value, NBM - Net New Business Margin, *Others includes Bajaj Finserv Standalone, and all remaining components ^ - Pre-Provision Operating Profit Before Tax Bajaj Finserv and Bajaj Finance figures are as per Ind AS 6#10Bajaj Finance Limited 10#11BFL - Key Strategic Differentiators STRATEGY B FINSERV BAJAJ Diversified financial services strategy seeking to optimise risk and profit, operate a sustainable business model and deliver a superior ROE and ROA Focused on continuous innovation by transforming customer experience thereby creating growth opportunities. DIFFERENTIATORS Focus on mass affluent and above clients Overall customer franchise of 7.30 Cr. and Cross sell client base of 4.43 Cr Strong focus on cross selling to existing customers Highly agile & highly innovative Deep investment in technology and analytics Diversified asset mix supported by strong ALM and broad-based sources of borrowings Centre of Excellence for each business vertical to bring efficiencies across businesses and improve cross sell opportunity. Continuous improvement in features of products & timely transitions to maintain competitive edge Has helped establish a highly metricised company and manage risk & controllership effectively Consolidated lending AUM mix for Urban : Rural : SME Commercial: Mortgages stood at 33%: 10%: 13%: 13%: 31% as of 30th June 2023 Consolidated borrowing mix for Money Markets: Banks: Deposits: ECB stood at 47%: 31%: 21%: 1% 11#12BFL Consolidated Results - Q1 FY24 Highlights B FINSERV BAJAJ All Figures in Rs. Crore Performance Highlights of Q1 FY24 over Q1 FY23 (Ind AS) CY 2,65,296 PY Jú 34% 7.30 Crore 12,501 3,437 21% 35% 32% 1,98,352 6.03 Crore 9,286 2,596 Book Size Customer Total Income Profit After Tax 10 CY 1.4% PY 1.3% Franchise 6.1% Capital Adequacy stands at 24.61% as of 30 June 2023 vs 26.16% as of 30 June 2022 (against the regulatory requirement of 15%) ■ Tier 1 Capital stands at 23.01% as of 30 June 2023 vs 23.84% as of 30 June 2022 5.8% Return on Assets (Non-annualized) ROE (Non-annualized) 12#13BFL - Key Highlights Q1 FY 2023-24 AUM & Business Franchise Growth B FINSERV BAJAJ ■ Core AUM as on 30 June 2023 stood at Rs. 2,70,097 Cr vs Rs. 2,04,018 Cr last year (32% growth); AUM growth in Q1 FY24 was Rs. 22,718 Cr ■ 99.4 Lakh new loans booked in Q1 FY24 as against 74.2 Lakh in Q1 FY23 ■ In Q1 FY24, BFL acquired 38.4 Lakh new customers v/s 27.3 Lakh in Q1 FY23 ■ Total customer franchise stood at 7.3 Cr as of 30 June 2023 - 21% growth YOY NIM Metrics, Liquidity and Operating Expense Credit Costs ■ Net Interest Income (NII) for Q1 FY24 was Rs. 8,398 Cr vs Rs. 6,640 Cr in Q1 FY23; Continues to protect margin profile across all businesses ■ As of 30 June 2023, deposits book stood at Rs. 49,944 Cr - growth of 46% YoY; Contribution to consolidated borrowing was 21% ■ In Q1 FY24, Opex to NII improved to 34.0% vs 35.9% in Q1 FY23; Company continues to invest in teams and technology for business transformation. Investing in Social and Rewards platform in FY24. Loan losses & provisions for Q1 FY24 were Rs. 995 Cr vs Rs. 755 Cr in Q1 FY23; BFL holds a management overlay position of Rs. 840 Cr as of 30 June 2023 ■ GNPA & NNPA stood at 0.87% and 0.31% as of 30 June 2023 as against 1.25% and 0.51% as of 30 June 2022 13#14BFL - Key Highlights Q1 FY 2023-24 B FINSERV BAJAJ Profitability & Capital Position Subsidiaries - Q1 2023-24 ■ Profit after tax (PAT) for Q1 FY24 increased by 32% to Rs. 3,437 Cr v/s Rs. 2,596 Cr in Q1 FY23, mainly on account of robust AUM growth, higher net interest income and better portfolio performance Capital adequacy remained strong at 24.61% as of 30 June 2023. Tier-1 capital was 23.01% A. Bajaj Housing Finance Limited (BHFL) ■ AUM grew by 29% to Rs. 74,124 Cr as of 30 June 2023 from Rs. 57,425 Cr as of 30 June 2022 ■ In Q1, overall disbursements grew by 12%. Disbursements stood at Rs. 10,383 crore in Q1 FY24 as against Rs. 9,255 crore in Q1 FY23 ■ Opex to NII stood at 24.1% in Q1 FY24 as against 26.8% in Q1 FY23 ■ Profit after tax (PAT) grew by 46% to Rs. 462 Cr in Q1 FY24 against Rs. 316 Cr in Q1 FY23 ■ GNPA & NNPA stood at 0.23% and 0.08% respectively as of 30 June 2023 as against 0.27% and 0.11% respectively as of 30 June 2022 ■ BHFL's Capital adequacy ratio (including Tier-Il capital) as of 30 June 2023 stood at 22.52% B. Bajaj Financial Securities Limited Total Income of Rs. 75 Cr in Q1 FY24 against Rs. 39 Cr in Q1 FY23; Delivering a profit after tax of Rs. 5 Cr in Q1 FY24 v/s profit of Rs. 1 Cr in Q1 FY23 14#15BFL : Book Size and Revenue B FINSERV BAJAJ All Figures in Rs. Crore Book Size Total Income FY23 growth of 27% Q1 FY24 growth of 34% FY23 growth of 31% Q1 FY24 41,415 growth of 35% 2,65,296 2,42,269 31,648 1,91,423 1,98,352 26,683 146,687 12,501 9,286 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Net Interest Income FY23 growth of 32% Q1 FY24 growth of 26% 28,855 21,894 17,269 6,640 8,398 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Bajaj Finance Consolidated results are as per Ind AS, previous years figures have been re-casted for comparability 15#16BFL : Loan Loss Provision and Operating Expenses Loss Provision and Net NPA% 1.50% 6,000 4,803 5,000 4,000 0.51% 3,190 3,000 0.68% 0.31% 2,000 0.34% 995 755 1,000 0 FY22 FY23 I Loss Provision (Rs. Crore) -0.50% Q1 FY23 Q1 FY24 Net NPA %* B FINSERV BAJAJ All Figures in Rs Crore ☐ GNPA & NNPA stood at 0.87% and 0.31% as of 30 June 2023 as against 1.25% and 0.51% as of 30 June 2022 Provisioning coverage ratio (PCR) of 65% on stage 3 assets; PCR stood at 114 bps on stage 1 & 2 assets as of 30 June 2023 vs 130 bps as of 30 June 2022 (was 90-100 bps during pre-pandemic) ☐ Overall, the portfolio composition across stage 1, stage 2 and stage 3 assets is better than pre-COVID metrics Operating expenses as a % of NII PAT FY23 growth of 64% 11,508 Q1 FY24 growth 34.7% 35.1% 35.9% 34.0% 30.7% 7,028 4,420 of 32% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 3,437 2,596 FY22 FY23 Q1 FY23 Q1 FY24 *Net NPA, recognized as per extant RBI prudential norms and provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS. 16#17Bajaj Allianz General Insurance 17#18BAGIC - Key Strategic Differentiators B Allianz BAJAJ Caringly yours STRATEGY Strive for market share growth in chosen segments through a well-diversified product portfolio and multi-channel distribution supported by prudent underwriting DIFFERENTIATORS Strong selection of Risk & prudent underwriting Balanced Product Mix Deep and wide distribution Retail & Commercial orientation Investments in technology with focus on all stakeholders - "Caringly yours" Industry leading combined ratios consistently over time ■ Business construct is to deliver superior ROE Diversified product portfolio offering across retail and corporate segments ■ Continuous innovations in product features to maintain competitive edge ■ Multi channel distribution network encompassing multiline agents, bancassurance, broking, direct, and ecommerce network serving all segments Focus on Penetrating Small Towns (Geo Model) Focused on retail segments (mass, mass affluent & HNI) & commercial segments (SME & MSMEs) while maintaining strong position in large corporates & government business Deep investments in technology to drive efficiencies for the Company and convenience for all stakeholders - Customers, distributors and employees 18#19BAGIC: Q1 FY24 Highlights CY 3,834 PY CY B Allianz Performance Highlights of Q1 FY24 over Q1 FY23 BAJAJ Caringly yours All Figures in Rs Crore 3,834 23% 27% 3,119 Gross Written Premium (GWP) 415 1% 2,047 1,938 16% 5% 3,009 1,758 1,852 GWP Excl. Crop & Net Written Premium Net Earned Premium Govt. Health 4.3% PY 411 Profit After Tax 4.8% ROE* (Not Annualized) *Return on Equity (ROE) is excluding fair value change 388% Solvency Ratio as at 30 June 2023 19#20BAGIC - Key Highlights Q1 2023-24 B Allianz BAJAJ Caringly yours Revenue Growth Loss Ratio (LR) and Combined Ratio (COR) Profit after tax (PAT) and Capital Position ■ GDPI grew by 22.2% in Q1 FY24 as against Private sector growth of 21.2% and Industry# growth of 16.5% ■ Ex. Crop & Govt. Health, Q1 FY24 GDPI grew by 26.7% v/s Private sector growth of 21.3% and Industry# growth of 16.5% ■ Ex. Crop & Govt. Health growth for Q1 FY24 was attributable to Motor (26.0%), Retail & Group Health (11.9% & 43.0%), Commercial lines (22.1%), and P.A. (30.3%) ■ Q1 FY24 growth was better than industry in almost all segments ■ In Q1 FY24, overall motor grew by 26% - 2W (40%), 4W (28%) and CV (15%) ■ For Q1 FY24, LR stands at 74.3% as against 77.9% in Q1 FY23 ■ Claim Ratio was better than PY which was attributable to: ■ Lower claims in Motor and Commercial segments partially offset by higher health claims (higher severity) and one-off impact of: ■ Rs. 15 crore (net) impact taken with respect to Osmanabad Kharif 2020 Crop season 'Biparjoy' cyclone claim of Rs. 10 crore (net) ■ COR decreased to 100.7% in Q1 FY24 v/s 104.6% in Q1 FY23 ■ Q1 FY24 PAT stands at Rs. 415 Cr v/s Rs. 411 Cr in Q1 FY23 ■ Muted PAT growth attributable to lower realized gains and impairment provision of unlisted equity of Rs. 10 Cr offset by higher current income and lower COR ■ Solvency Ratio stands at a healthy 388% as on 30 June 2023 Source: IRDAI Monthly Business Figures & GIC Council Segmental Reports #Industry growth excluding specialised insurers and Standalone Health Insurers | *Commercial Lines - Fire, Engineering, Marine & Liability 20 20#21BAGIC: Combined Ratio Combined Ratio 99.6% 100.5% 96.9% FY21 FY22 FY23 B Allianz BAJAJ Caringly yours 104.6% 100.7% Q1 FY23 Q1 FY24 1. Combined Ratios are in accordance with the Master Circular on 'Preparation of Financial statements of General Insurance Business' issued by IRDA effective from 1st April, 2013. (Net claims incurred divided by Net Earned Premium) + ( Expenses of management including net Commission divided by Net Written Premium). 21#22BAGIC: Profit after tax and Capital efficiency B Allianz BAJAJ Caringly yours All Figures in Rs. Crore PAT Q1 FY24 PAT growth of 1% 1,330 1,339 1,348 FY21 FY22 FY23 Total Capital infused is Rs. 277 Cr No Capital infusion since FY08 BAGIC - Capital Invested - Networth 411 415 Q1 FY23 Q1 FY24 Accumulated profit* 97% of Net worth as on 30 June 2023 9,806 9,974 8,822 8,758 7,524 9,530 9,697 8,545 8,482 7,248 277 277 FY21 FY22 ■Capital Invested 277 277 277 FY23 Q1 FY23 Q1 FY24 Reserves Net Worth *Accumulated profit includes reserves and fair value change on equity investments 22#23BAGIC: Consistently amongst top private insurers in terms of Gross Premium B Allianz BAJAJ Caringly yours Rs. Crore Industry GDPI Trend (Rs. Cr.) Q1 FY24 GDPI growth of 17% 2,41,071 2,05,753 1,85,595 1,58,184 1,13,770 1,30,621 54,122 63,575 71,826 75,133 82,887 33,496 20.626 40,870 22.705 FY21 FY22 FY23 Q1 FY23 Q1 FY24 PSU Private Insurers* Industry 12,624 FY21 7,436 BAGIC Premium Trend Q1 FY24 Premium grew by 23% 15,487 13,788 7,779 8,019 3,119 3,834 1,852 1,938 FY22 FY23 GWP NEP Q1 FY23 Source: IRDAI, GDPI: Gross Direct Premium Income | *Private Insurers: Includes Standalone Health Insurers, &PSU, and excludes AIC & ECGC Q1 FY24 23#24BAGIC: Balanced Product Mix Business Mix B Allianz BAJAJ Caringly yours 9% 14% 10% 14% 11% 0% 0% 20% 18% 15% 32% 32% 18% 19% 19% 9% 16% 10% 12% 14% 6% 6% 6% 6% 5% 38% 35% 35% 34% 35% FY21 FY22 FY23 Q1 FY23 Q1 FY24 Motor (Retail) ■Health (Retail) Group Health ■Prop, Liability, Engg ■Agri (Crop Insurance) Others BAGIC's excluding Crop & govt. health insurance GWP growth for Q1 FY24 vs Q1 FY23 was 27% BAGIC growth higher than the industry in almost all segments Note: The components might not add up to total of 100% due to rounding off 24#25BAGIC: Diversified Channel Mix Channel Mix 27% 30% 25% B Allianz BAJAJ Caringly yours 26% 23% 42% 42% 48% 45% 45% 3% 10% 10% 10% 10% 2% 10% 18% 16% 15% 16% FY21 FY22 FY23 Q1 FY23 Corporate Agents - Others Brokers 18% Q1 FY24 Direct Business Individual Agents Bancassurance Partnerships •Over 214 Bank partners •20 National Tie-ups & MNC Banks ⚫28 NBFCs, 5 SFBs, 12 Housing Finance Companies, 1 Payments Bank •133 Co-operative banks, 15 RRBs •New Tie-ups in Q1 FY24: HDFC Securities, Manipur Rural Bank etc. Corporate Agents - Banks Agency & Retail Channels 52,800+ agents & 69,182 POS • Virtual Sales Offices Acquisition of Direct Customers through our Sales Force Agency segmented under prime, key, emerging and Retail and SME OEMS* & Dealer Partnerships ⚫45 national Tie-ups and over 9,300 network of dealers across pan India •National Tie-ups: Maruti, Honda, Toyota, Mahindra, Hyundai, MG, Kia, VW, BMW, TATA Motors, Bajaj, RE, Yamaha, Piaggio, JCB, Suzuki TW, Bgauss, Revoult, Lexus, Nissan, Renault, Hero Electric, Ampere, etc. Rural Focus •19.22 lakh farmers insured in FY2023 ⚫Issued 35.10 lakh NOPS under crop insurance in FY2023 •Received crop insurance enrollments from 14,797 CSC centers in FY2023 •15,330+ active CSC centers in Q1 FY24 Note: The components might not add up to total of 100% due to rounding off | * Original Equipment Manufacturer Presence in ecosystems • 23+ Partnerships across Insuretech companies, aggregators, wallets such as Phone Pe, payments banks, etc 25#26BAGIC: Assets Under Management AUM (cash and investments) Rs. Crore B Allianz BAJAJ Caringly yours BAGIC continues to Q1 FY24 growth of 13% 28,611 grow its AUM strongly 27,809 24,633 25,362 23,150 Investments are largely in fixed income securities Investment Leverage of 2.87 as on 30 June 2023 FY21 FY22 FY23 Q1 FY23 Q1 FY24 99% of debt portfolio is in AAA or sovereign securities. 93.1% of Equity investment is in BSE 100 stocks Advance premium as on 30 June 2023 Rs. 1,678 crore, growth at 44% Investment Leverage: AUM as of date / Net worth as of date 26#27Profit (PBT) Waterfall: Q1FY23 vs Q1FY24 B BAJAJ Allianz ( Caringly yours All Figures in Rs. Crore 551 116 95 7 (120) (59) (25) (10) Key lines of business Net Loss Ratio UW with reduction Q1 FY24 Q1 FY23 loss 61 cr Increase largely Fire 67.1% 71.8% attributable to Marine 50.8% 88.4% Invest. higher advance Motor OD 71.2% 82.2% income 612 cr grown 44% since PY premium which has Motor TP 79.7% 88.6% Motor Total 76.0% 86.0% Engineering 72.2% 121.4% Personal Accident 54.0% 61.1% Total Company 74.3% 77.9% 555 UW loss 42 cr Invest. income 597 cr PBT Q1FY23 PBT Q1FY23 come investment Increase increase in current Incomement in Clamprovement Impr in claims ratings in total coSavings in total cost Realized grins ratio (net) Lower realized capital gains NEP VO Premium ional iems Deferment Impact # One-Off items * Impairment prompairment Provision ** * (a) Biparjoy cyclone claims Rs. 10 crore (b) Crop claims under litigation for Maharashtra FY2020 Kharif season Rs. 15 crore (net) ** Impairment provision made towards unlisted equity Rs. 10 crore # Premium Deferment Impact - Impact on earnings due to higher growth largely attributable to Motor & Commercial segments PBT Q1FY24 PBT Q1FY24 27 UW = Underwriting; PBT = Profit Before Tax; Total Cost ratio(net) = (Net Commission + Expenses)/Net Written Premium; Invest. Income = Investment & Other Income(net)#28Key Technology & Customer Initiatives of Q1 FY23-24: 1/2 B Allianz BAJAJ Caringly yours Digital Journey Metrics Digital Agent Onboarding Q1 FY23-24 Digital Issuance Q1 FY23-24 From 100% in FY 22-23 -> 100% From 95.21% in FY 22-23 -> 95.64% Digital Payment Q1 FY23-24 Net Promoter Score* Motor Health PROOF OF AUTO FY22 FY23 FY22 FY23 INSURANCE From 92.47% in FY 22-23 -> 94.12% 70 ↑ 72 68 ↑ 69 VPay Insurance Industry first game changing add on cover that offers 360- degree coverage & umbrella protection for all Motor OD needs of insured vehicles Key Initiatives Summary A Revamped Pet Insurance Successfully launched a revamped Pet Insurance product, offering enhanced coverage and streamlined user journeys TP Claims Legal Platform Efficiently implemented a comprehensive platform to manage third-party legal claims to optimize processes Surveyor App for Non- Motor Claims Implemented cutting-edge Surveyor App for Non-Motor Claims, enabling faster assessments and seamless OD - Own Damage, TP-Third party, KYC-Know your customer, OCR-Optical character recognition, TR- traffic rewards * NPS conducted by an independent agency across the customer journey Integration with Traffic Reward App Integration with TR app, traffic rewards an initiative of Road Transport Ministry piloted for Nagpur City Offline KYC Implemented Offline KYC capabilities, streamlining customer verification by leveraging OCR solution 28#29Key Technology & Customer Initiatives of Q1 FY23-24: 2/2 Enhanced cyber cover BAGIC GIFI Suraksha Custom iOS app developed for selling Asset Suraksha & Cyber Safe product during GIFI event Innovation Scaled-up Al Chatbot B Allianz BAJAJ Caringly yours Enabled Policy Issuance for 2 Motor- TP products & 1 Property (BLUS) product in Calculator BOT, Agri Claim Intimation bot 3.57 L Unique Customers Website Existing Digital Capabilities Enhanced & Scaled-up Our website is now available in 7 different languages for our customers 5.7 Mn visitors | 1.44 L policies issued (3) Care B Care Portal Our flagship portal for agents has over 93 products available for policy issuance and services 9.37 L+ policies issued with over 458 Cr. of business booking Caringly Yours App Our Customer facing app Bremains as the most used app B Care in Insurance Industry 3.6 Mn downloads & 7.72 L active users since inception B Care App Our Agent & VSO app has over 87 products available for policy issuance and services 2.24 L + policies issued with over 66 Cr. Of business booking GIFI - General Insurance Festival of India, Al- Artificial intelligence, CRM- Customer Relationship Management BAGICARE - CRM Agri. claim registration, WhatsApp SAGICARE integration, Customer loyalty flagging & Gold 7 upgrade to enhance the UX CRM 9.85 L Service Requests 3 Mn Leads Generated Farmitra App The usage of the app launched for Farmer Community has seen a significant uptake 6.35 L+ downloads since inception 29#30BAGIC hosted General Insurance Festival of India (GIFI) B BAJAJ Allianz Caringly yours B Allianz BAJAJ Caringly yours Celebrating INDIA'S BIGGEST GENERAL INSURANCE FESTIVAL ival of India Festival General li Insurance I GUINNESS WORLD RECORDS CERTIFICATE The largest attendance for an insurance conference was achieved by Bajaj Allianz General Insurance Co. Ltd in Pune, Maharashtra, India on 3 July, 2023. OFFICIALLY AMAZINGE WWW.GUINNESSORS.COM GUINNESS RECORD HOLDER ORLD RECO are that Breaks Records! C GUINNESS Gif B Allianz BAJAJ Caringly yours Care that Breaks Records! QUINNERS - RECORD HOLDER 5235 Attendees Created History BAJAJ ALLIANZ GENERAL INSURANCE ACHIEVES A FEAT! For Largest Attendance at an Insurance Conference! 4 GUINNESS WORLD RECORDS® TITLE 30#31BAGIC: Risk Management ■ ■ B Allianz BAJAJ Caringly yours Asset Quality 99% of the debt portfolio in AAA and sovereign assets 90.2% of Equity is in Nifty 50 stocks & 93.1% is in BSE100 stocks Oversight by Board & Executive investment committee and group level investment forum Robust ALM position Re-Insurance Reinsurance ceded only to the A- and above & AA rated reinsurers, except mandatory ceding to GIC (Average Retention of ~15% for commercial lines) Large reinsurance capacity & optimum retention Robust process of monitoring concentration of risk Catastrophic events adequately covered ☐ ☐ ☐ Pricing & Underwriting Superior underwriting capability leading to low Combined Ratio consistently Diversified exposure across business lines & geographies - geography, Granular loss ratio modelling distribution, car make/model, vintage, etc. Investigation, loss management & analytics intervention Reserving & Solvency IBNR loss triangles show releases from settlement of claims, indicating robustness of reserving at the point of registration of claims Highest solvency amongst peers 31#32Bajaj Allianz Life Insurance 32#33BALIC - Key Strategic Differentiators B Allianz BAJAJ LIFE GOALS. DONE. STRATEGY • Continued focus on sustainable and profitable growth by maintaining balanced product mix and investment in retail growth engines Business construct is to maximize customer benefits while gaining market share in retail space, maintaining shareholder returns and continued focus on increasing Net New Business Value (NBV) DIFFERENTIATORS ☐ Pan India distribution reach with presence over 500 branches ■ Balanced channel mix Agency, Institutional Business Diversified Distribution including Banca, and BALIC Direct Strong proprietary channels Innovative products and Sustainable product mix ■ Strong presence in group credit protection and online offerings ■ One of the largest Agency in terms of IRNB amongst private players ■ Robust BALIC Direct channel to invest in up-selling and cross- selling ■ Diverse suite of products across various need segments, with an aspiration to provide our customers "Best in Class" features ■Innovative products & features like the Magnum Fortune Plus (ULIP), Assured Wealth Goal (Non-Par), Guaranteed Pension Goal (Annuity), SISO** (SIP), Smart Wealth Goal (ULIP), Flexi Income Goal (Par) have witnessed strong response from the customers ■ Embarked on a customer obsession journey Efficient Operations **Systematic in Systematic Out; FTR : First Time Right ■ Auto pay improvement across all cohorts and channels ■ Focusing on faster issuances, claim settlement and driving FTR 33#34BALIC - Q1 FY24 Highlights CY 1,028 B BAJAJ Allianz LIFE GOALS. DONE. Performance Highlights of Q1 FY24 over Q1 FY23 All Figures in Rs. Crore 364 650 1,899 4,058 15% -73% 13% 31% -7% PY 54 895 1,339 574 Individual Rated NB Group Fund NB Group Protection NB 1,452 4,369 Renewal Premium Gross Written Premium CY 3,694 0 155 94 909 475% 22% 26% -30% 24% Solvency Ratio as at 30 Jun 2023 PY 3,030 124 135 731 Gross Written Premium Profit After Tax (PAT) excluding Fund Business Net New Business Value (NBV) 12 Month Rolling NBV Individual Rated NB = (100% of first year premium & 10% of single premium excluding group products) Rolling 12M FY24 represents the business written between July 2022 to June 2023; Rolling 12M FY23 represents the business written between July 2021 to June 2022 34#35BALIC - Key Highlights Q1 2023-24 B BAJAJ Allianz LIFE GOALS. DONE. Revenue Growth & Market Share ▪ In Q1 FY24, IRNB grew by 15% (vs private players growth of 8% and overall industry growth of 2%) ■ Market share in IRNB terms increased from 8.3% in Q1 FY23 to 8.8% in Q1 FY24 among private players ■ BALIC improved its ranking on IRNB basis from 6th to 5th position in Q1 FY24 ■ BALIC's 2 Year IRNB CAGR at 44% in Q1 FY24 is among the highest in the Industry ■ GWP excluding Group Fund Business grew by 22% for Q1 FY24 Product Mix (IRNB Basis) Renewal Premiums New Business Value Profit After Tax Source: IRDAI Monthly Business Figures ■ Par: Non-Par Savings: ULIP: Protection: Annuity retail mix stood at 13%:33%:42%:05%:06% respectively in Q1 FY24 v/s Q1 FY23 product mix of 19%:31%:38%:03%:09% Registered strong growth in renewals of 31% in Q1 FY24; supported by various initiatives to improve persistency across most cohorts especially in the later buckets ■ Net New Business Value at Rs. 94 Cr in Q1 FY24 v/s Rs. 135 Cr in Q1 FY23, mainly due to change in product mix and interest rate movement ■ PAT for Q1 FY24 was Rs. 155 Cr v/s Rs. 124 Cr in Q1 FY23, mainly due to higher Shareholder Income and lower death claims, partially offset by higher new business strain on account of business growth IRNB - Individual Rated New Business, NB - New Business, GWP - Gross Written Premium, ULIP - Unit Linked Insurance Plan, CAGR - Compounded Annual Growth Rate 35#36BALIC - Topline related metrics New Business 2,916 Q1 FY23 1,452 2,159 Q1 FY24 Q1 FY23 Group Fund NB 1,339 Q1 FY23 Renewals 1,899 4,369 Q1 FY24 Q1 FY23 Group Protection NB 650 574 364 Q1 FY24 Q1 FY23 Q1 FY24 895 B BAJAJ Allianz LIFE GOALS. DONE. All Figures in Rs Crore GWP 4,058 Q1 FY24 IRNB 1,028 Q1 FY23 Q1 FY24 ■ Individual Rated New Business (IRNB) grew 15% from Rs. 895 Cr in Q1 FY23 to Rs. 1,028 Cr in Q1 FY24 ■ Q1 FY24 GWP de-grew by 7% to Rs. 4,058 Cr from Rs. 4,369 Cr in Q1 FY23. Excluding Group Fund Business, GWP grew by 22%. * CAGR (Compounded Annual Growth Rate) is for the quarter 36#37BALIC: Individual Rated New Business Whole Company FY23 growth of 41% 5,214 3,686 Agency FY23 growth of 43% 2,122 Q1 FY24 growth of 15% 1,489 Industry beating growth 895 1,028 493 B BAJAJ Allianz LIFE GOALS. DONE. All Figures in Rs Crore Q1 FY24 growth of 22% Agency continues to stride ahead with substantial growth 473 387 238 FY22 FY23 Q1 FY22 Q1 FY23 Q1 FY24 FY22 FY23 I Q1 FY22 Q1 FY23 Q1 FY24 Institutional Business BALIC Direct FY23 growth of 42% FY23 growth of 34% 2,640 Q1 FY24 growth of 8% 452 I 338 1,859 r IB continues to provide overall I incremental growth Q1 FY24 growth of 18% BALIC Direct continues showing significant year-on-year growth 435 468 212 FY22 FY23 Q1 FY22 Q1 FY23 Q1 FY24 FY22 Individual Rated NB = (100% of first year premium & 10% of single premium excluding group products) 73 86 43 FY23 ¡ Q1 FY22 Q1 FY23 Q1 FY24 ---- 37#38BALIC: Balanced product mix B BAJAJ Allianz LIFE GOALS. DONE. IRNB Mix Share of Non-par savings and Annuity stands at 38% in Q1 FY24 31% - Individual Unit Linked 41% 39% 38% 42% 3% 3% 3% 6% 5% Individual Non Par Protection Individual - Non Par Savings 27% 42% 31% 29% 33% Individual - Annuity 2% 11% 7% 9% Individual Par 6% 23% 20% 17% 19% 13% FY21 FY22 FY23 Q1 FY23 Group NB Mix Q1 FY24 Protection (Group) new business in Q1 FY24 - Rs. 650 Cr (vs Rs. 574 Cr in Q1 FY23) 58% 56% 53% 70% 36% 64% Group Fund NB ■Group Protection NB 42% 44% 47% 30% FY21 FY22 FY23 Q1 FY23 Q1 FY24 IRNB - Individual Rated New Business - (100% of first year premium & 10% of single premium excluding group products). Note: The components might not add up to total of 100% due to rounding off 38#39BALIC: Diversified Distribution Mix Individual Rated New Business Channel-wise Mix 11% 9% 9% 8% 8% 45% 50% 51% 49% 46% 44% 40% 41% 43% 46% B BAJAJ Allianz LIFE GOALS. DONE. Balanced mix between institutional and proprietary retail channels - Agency, Institutional Business and BALIC Direct contributing approximately 46%, 46% and 8% respectively in Q1 FY24 (in IRNB terms) Within existing retail channels, focus is to drive profitable product mix; improve sales productivity; drive cost efficiencies through hierarchical synergies, improving span of control and variabilization FY21 FY22 FY23 Q1 FY23 Q1 FY24 Agency Institutional Business BALIC Direct Agency: Focus on profitability and driving higher traditional Mix One of the largest agency in private LI space; backed by 1.31 Lakh+ agents Continued balanced product mix with traditional individual rated new business mix at 57% in Q1 FY24 Variabilization of Agency cost through low-cost models (15% contribution in Q1 FY24 vs 11% in Q1 FY23) Institutional Business: Building sustainable business through strong integration with partners Diverse mix of large and small partner banks, NBFC, brokers and web aggregators Robust start with recent new Corporate Agency tie-ups with Development Bank of Singapore, City Union Bank, TamilNad Mercantile Bank, Punjab & Sind Bank, and Jammu & Kashmir Bank ☐ Opening of Rep Office in Dubai Individual Rated NB = (100% of first year premium & 10% of single premium excluding group products) *Note: The components might not add up to total of 100% due to rounding off BALIC Direct : Analytics backed, focused verticals for upsell and cross sell initiatives Presence in 196 cities, with Dedicated Verticals for various customer segments ✓ Customer Portfolio Management ✓ Service to Sales ✓ Hub and Spoke ✓ New to BALIC (NTB) ✓ Defence Data and Analytics as a key pillar for Direct business 39#40BALIC: Persistency Persistency 13th Month 83% 82% B Allianz BAJAJ LIFE GOALS. DONE. Persistency 25th Month 83% 83% 74% 73% - Persistency 13th Month ■FY22 ■FY23 Q1 FY23 Q1 FY24 Persistency 37th Month 67% 66% 66% 67% Persistency 49th Month 64% 62% 62% 63% 75% 73% Persistency - 25th Month FY22 FY23 Q1 FY23 Q1 FY24 Persistency 61st Month 48% 50% 50% 50% Persistency - 37th Month FY22 FY23 Q1 FY23 Q1 FY24 Persistency - 49th Month FY22 FY23 Q1 FY23 Q1 FY24 Persistency - 61st Month ■FY22 ■FY23 Q1 FY23 Q1 FY24 Continued focus on renewal collection via various initiatives such as driving auto-payment registration, digital payments & higher distribution ownership have led to significant improvement in persistency across most cohorts *Note: Persistency as per IRDAI framework; Individual business excluding single premium and fully paid-up policies | The persistency ratios for the period ended have been calculated for the policies issued in June to May period of the relevant years 40 40#41BALIC : New Business Value & New Business Margins B BAJAJ Allianz LIFE GOALS. DONE. All Figures in Rs. Crore Q1 FY24 Q1 FY23 Growth Rolling 12M Rolling 12M FY24¹ FY232 Growth Annualized Premium (ANP)* 1,273 1,218 5% 6,172 4,987 24% Net New Business Value (NBV)** 94 135 -30% 909 731 24% Net New Business Margin (NBM) on ANP 7.4% 11.1% -3.7% 14.8% 14.7% 0.1% Since life insurance business is seasonal with large proportion of business written in Q4 and H2, rolling 12 months data is indicated for information only. This does not in any way imply a forecast or expectation for FY 24. NBV de-grew by 30% in Q1 FY 24 over Q1 FY 23 due to change in product mix and interest rate movement. 1 - Rolling 12M FY24 represents the business written between July 2022 to June 2023 2- Rolling 12M FY23 represents the business written between July 2021 to June 2022 **New Business Value represents discounted present value of expected net cash flows from new business written *ANP refers to annualized new business written during the year and is calculated by assigning a 10% weight to single premium and 100% weight to regular premium. Group Fund business is included in the definition of ANP 41#42Performance of Key Digital Assets and New Tech Initiatives - Q1 FY24 Digital assets Internal Assets B BAJAJ Allianz LIFE GOALS. DONE. NEW INStab 100% Online sales Login Process 19% increase in Unique users in Q1 FY24 over PY Customer 360 Upsell and Sales productivity tool 2.5 Lakhs transactions EEZE HR Bot Whatsapp Chatbot for Employee Servicing 19K Unique users WhatsApp for ICs Agent servicing and query resolution ~37K Unique Users, 55% growth in Q1 FY24 over PY Life Assist App 100% Online Customer Servicing ~2 Lakhs Unique Users 36% growth in Q1 FY24 Customer Portal ~2 Lakhs Unique Users 107% increase in Q1 FY24 over PY WhatsApp Customer servicing ~7 Lakh Unique Users, 206% increase in Q1 FY24 over PY Customer-facing Assets iSmart ~23k Unique Users 99% increase in Q1 FY24 over PY EEZE HR Bot | Al in Underwriting | InstaLearn 2.0 | DigiBanca | Customer Data Platform * ICs Insurance Consultants | LMS: Lead Management System; RMs: Regional Managers | QR: Quick Response 42#43Winner of DGI Insurance Innovation Award 2023 - APAC Region B BAJAJ Allianz LIFE GOALS. DONE. SIX FINALIST THE WORLD'S DIGITAL INSURANCE AWARDS APAC REGIONAL FINALISTS 2023 國泰人壽 HSBC Life Cathay Life Insurance Health & Wellness solution AIP Innovating the Agent experience with Al Enabled Role Play Upsell tools using risk and propensity scoring CHINA TAIWAN MSIG fermion Al assisted Motor Fraud solution Singlife Microsite solution for digital distribution with ecosystem partners SINGAPORE PHILIPPINES HONG KONG B Allianz ⑪ BAJAJ LIFE GOALS. DONE. Engagement through conversational Al on WhatsApp @ INDIA WINNER THE WORLD'S DIGITAL INSURANCE AWARDS CONGRATULATIONS! Allianz⑪ B BAJAJ LIFE GOALS. DONE. INSURER INNOVATION AWARDS WINNER - APAC 2023 Presented by: THE DIGITAL INSURER TDI Delivering Digital Together AIA - China | Cathay Life Insurance Ltd. - Taiwan | HSBC Life - Hong Kong | MSIG Insurance - Singapore | SingLife - Philippines MEDIA RELEASE 13 43#44BALIC: Assets Under Management (AUM) & Net Worth Rs Crore 85,623 AUM (Mix) 90,584 95,317 83,072 56,802 58,481 52,196 51,765 33,427 33,782 36,837 31,307 B BAJAJ Allianz LIFE GOALS. DONE. AUM as of 30 June 2023 grew by 15% Of the UL Funds of Rs. 36,837 crore, 78% is equity (including equity ETF) as on 30 June 2023 (74% as on 30 June 2022 out of the UL Funds of Rs. 31,307 crore) Rs Crore FY22 FY23 Q1 FY23 Q1 FY24 Unit Linked Total Other than unit linked AUM Total Capital infused is Rs.1,211 Cr No Capital infusion since FY08 Net worth 10,939 10,785 10,526 10,558 9,728 9,574 9,315 9,347 1,211 1,211 FY22 FY23 1,211 Q1 FY23 1,211 Q1 FY24 ■Reserves & Surplus Networth ■Capital Invested *Accumulated profit includes reserves and fair value change on equity investments BALIC's accumulated profits* are 89% of the Net worth as on 30 June 2023 44#45BALIC: Risk Management RISK MANAGEMENT B BAJAJ Allianz LIFE GOALS. DONE. Product Pricing Prudent assumptions while product pricing ☐ Stress and scenario testing performed at pricing stage Regular review of pricing based on prevailing interest rates Asset Liability Management (ALM) Ongoing Risk Management Interest rate risk on the Individual Non-Participating Savings, Protection and Annuity portfolio managed through partly paid bonds, and Forward Rate Agreements ☐ ALM focused on cashflow matching Underlying bonds on Forward Rate Agreements are chosen based on liability profile. For annuities, there is continuous monitoring of business mix in different variants, age bands and deferment period Prudent interest rate assumptions to ensure adequacy of statutory reserves ☐ Periodic product condition monitoring, periodic sensitivity & stress testing ☐ Regular monitoring of business mix Mortality risk is managed managed by diligent in-house underwriting, analytics driven risk scoring and appropriate reinsurance arrangements Additional provisions set aside for COVID-19 claims 45#46Bajaj Finserv Direct Ltd (Bajaj Markets) 46 46#47BFSI Marketplace Business STRATEGY B BAJAJ FINSERV BFSI marketplace by BFSD, is a unique & diversified Marketplace for Financial Services which acquires large number of consumers and cross-sells products by leveraging Technology & Analytics. DIFFERENTIATORS Diversified Marketplace Business Model Choice, Cost & Convenience Digital Technology Advanced Analytics Open Architecture platform offers Financial products' variants across Loans, Cards, Insurance, Investments & Payments in partnership with leading industry players ■ Wide choice from offerings of ~60 manufacturers 'Compare, select & buy' ■ Convenience of end-to-end digital journey and frictionless fulfilment ■ Cloud based digital native architecture leveraging API ecosystem, Big Data, modern web and app technologies ☐ Leveraging large customer franchise and its digital footprint through advanced analytics to give personalized recommendations and increase cross-sell penetration 47#48Performance of Digital Properties Total Visits (In Thousands) Organic Visits (In Thousands) B FINSERV BAJAJ 50,000 42,490 43,822 10,000 40,754 41,459 40,920 40,000 35,759 8,000 33,352 6,229 27,792 30,000 6,000 4,978 5,201 5,219 19,928 20,000 4,000 3,275 3,308 2,685 2,335 10,000 2,000 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY 21-22 21-22 21-22 21-22 22-23 22-23 22-23 22-23 23-24 Mobile App Installs (In Thosands) 250 3,500 3,274 200 2,520 2,706 150 2,381 2,500 2,200 1,983 1,851 1,500 1,283 1,043 500 Q1FY21-22 Q3 FY21-22 Q1 FY22-23 Q3 FY22-23 Q1 FY23-24 8,560 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY 21-22 21-22 21-22 21-22 22-23 22-23 22-23 22-23 23-24 100 57 54 50 0 Transacting customers (in thousands) 146 116 120 219 200 202 194 Q1 FY21-Q2 FY21-Q3 FY21-Q4 FY21-Q1 FY22-Q2 FY22-Q3 FY22-Q4 FY22-Q1 FY23- 22 22 22 22 23 23 23 23 24 48#49Bajaj Finserv Direct Ltd. - Financial Snapshot Total Income PAT Capital infused (as on 30 June 2023) Net Worth (as on 30 June 2023) 140 120 Total Revenue B BAJAJ FINSERV All Figures in Rs. Crore FY23 391 Q1 FY24 Q1 FY23 116 79 (14) (25) (52) 807 587 104 107 Total Opex 130 115 117 93 100 113 116 73 104 69 80 94 60 60 6 79 66 40 56 48 20 38 Q1 FY21-22 Q2 FY21-22 Q3 FY21-22 Q4 FY21-22 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Highlights for the period ending 30 June 2023: For Q1 FY24, BFSD has attracted around 8.77 MM consumers on digital platform, of which 0.22 MM became customers. Total Revenue for Q1 FY24 at Rs 116 crore which grew at 47% YOY 49#50Digital Technology services business SKALEUP Bajaj Finserv Direct . STRATEGY Be a leading digital technology services provider from India in the financial services sector through deep domain expertise and execution capabilities. Build scale & focus on profitability. Portfolio of 6 technology Services to address business needs of BFSI industry basis strong domain & technology expertise we possess IT services business is a cost + margin business model with shorter investment cycle • We will offer end-to-end services including design, development, implementation & support for Digital technology solutions needs of customers. لمسان A Digital application development Enterprise Solutions development Data engineering Analytics services QA & automation Managed Cloud services Clients BAJAJ FINANCE LIMITED UGRO CAPITAL الث ASSET B MANAGEMENT Jana Small Finance Bank A SCHEDULED COMMERCIAL BANK VRIDHI HOME FINANCE B Allianz ⑪ BAJAJ LIFE GOALS. DONE. AMBIT Finvest Pragati ke partner 50#51Bajaj Finserv Health Limited 51#52Bajaj Finserv Health - Key Strategic Differentiators STRATEGY Health Management platform to solve for Access and Financing of healthcare to Indian consumers B FINSERV BAJAJ • Making healthcare Prepaid, Preventive and Personalized by covering Hospitalization, Diagnostics and Doctor consultation spends DIFFERENTIATORS Digital Experience Extensive Provider Network for digital cashless healthcare Customised Product Management Deep investment in technology and analytics Comprehensive digital journey for buying, transaction or engagement Seamless cashless booking experience 100,000+ Doctors on platform 5000+ lab touch points 1950+ hospitals on network Differentiated product plans for retail and corporate customers Cumulative 0.3 mn users on renewable plans App first approach Microservice architecture Leading Healthcare transformation Integration with ABDM for Health ID, HIP and HIU services, and portable health records Wellness modules for preventive healthcare 52 52#53Bajaj Finserv Health - Business Model PROVIDER STACK Doctors Diagnostics Hospitals SUPERIOR CONSUMER EXPERIENCE B FINSERV BAJAJ CONSUMER STACK Health Insights Health App Cashless OPD Cohort Formation Fitness & Wellness Customized Product PREVENTIVE HEALTHCARE TRANSACTIONS PERSONALIZE Employee Wellness Health Transactions Provider Information PREPAID 53#54Bajaj Finserv Health - Overall Metrics & Services B 2,780 6,320 REVENUE & OPEX (Lakhs) 8,490 7,738 3,418 3,731 4,508 BAJAJ FINSERV 17,102 18,000 16,000 13,169 14,000 10,173 10,879 12,000 10,000 6,836 8,000 6,000 4,000 2,000 Q4 FY21-22 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Total Revenue (in Lakhs) Total Opex (in Lakhs) Doctor Consultation Services Offered Tele consult or In-clinic in Cashless or Reimbursement Wellness Services Step Tracker Module for activity challenges & usage-based rewards Diagnostic Visits Radiology or Pathology tests in Cashless or Reimbursement Diet & Nutrition Nutritionist assessments, meal logging Preventive Healthcheck Annual health check in Cashless model Fitness Programs Gym access & Fitness sessions Dental Dental consultations & procedures India Stack- ABHA Creation of ABHA accounts • HFR/HPR IDS for providers 54#55Bajaj Finserv Health - Business Metrics REGISTERED USERS (CUMULATIVE) MONTHLY ACTIVE USERS 94,64,233 1,00,00,000 7,00,000 5,97,758 81,62,955 73,39,823 6,00,000 80,00,000 4,66,061 60,48,577 5,00,000 60,00,000 45,32,739 4,00,000 40,00,000 3,00,000 2,00,000 20,00,000 1,00,000 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Aarogyacare Health Prime Providers Sign Ups Total *Cumulative unique users registered on platform or holding a product B FINSERV BAJAJ 3,94,480 3,34,594 3,21,994 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 App Web *Users doing any interaction on platform Total TRANSACTIONS PAYING USERS (11,14,377) 14,00,000 12,00,000 9,74,191 9,67,709 12,00,000 11,47,613 10,00,000 8,55,161 8,09,253 10,35,578 10,00,000 9,13,213 8,00,000 8,00,000 7,02,716 6,00,000 3,52,000 3,10,650 6,00,000 4,00,000 2,00,000 2,99,955 4,85,948 4,00,000 2,27,083 1,25,758 2,00,000 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 ■Total *Healthcare transactions across all provider points Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Aarogyacare Renewable Corporates Total *Users paying for services - one time or renewable Health Prime 55#56Bajaj Finserv Health - Network Metrics DOCTOR NETWORK DENTAL NETWORK B FINSERV BAJAJ 8,16,092 9,00,000 3,00,000 7,59,118 8,00,000 2,39,596 6,64,826 2,28,579 2,50,000 7,00,000 1,83,680 4,97,443 6,00,000 2,00,000 3,45,041 5,00,000 1,42,741 1,50,000 4,00,000 81,353 3,00,000 1,00,000 2,00,000 69,577 70,694 73,433 74,908 74,753 21,022 22,434 23,032 23,546 23,544 50,000 1,00,000 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 I Doctor Network Transactions *Network of Doctors on-boarded and total doctor transactions DIAGNOSTIC NETWORK 71,122 62,756 43,438 35,506 37,803 3,158 4,020 4,305 4,323 5,073 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 I Dentist Network Transactions *Network of Dentists on-boarded and Dental transactions HOSPITAL NETWORK 11,120 12,000 9,283 8,618 10,000 7,333 8,000 5,507 6,000 4,000 1,433 1,707 1,745 1,856 1,950 2,000 Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Diagnostic touchpoints Q4 FY22-23 Q1 FY23-24 Diagnostic Transactions Q1 FY22-23 Q2 FY22-23 Q3 FY22-23 Q4 FY22-23 Q1 FY23-24 Hospital Network Transactions *Network of Diagnostic touchpoints and total diagnostic transactions *Network of Hospitals on-boarded and total transactions 56#57Additional Information – BAGIC -#58BAGIC: Investment Performance Total Funds# Investment Leverage 3.08 2.79 2.84 2.9 2.87 26,619 27,825 23,016 24,401 24,542 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Realised Yield (Annualised) 7.7% 7.7% 7.7% 8.7% B Allianz BAJAJ Caringly yours All Figures in Rs Crore Investment Portfolio mix for Q1 FY24: Corporate bonds 29.3%, G-Sec 59.6%, Equity* 10.5%, Money Market 0.5% and Fixed Deposits 0.1% Unrealized gain of Rs. 103 crore as on 30 June 2023 We have booked Rs. 159 crore of capital gains during Q1 FY24 FY21 FY22 FY23 Q1 FY24 Investment Leverage: AUM as of date / Net worth as of date | *Equity includes AT1 bonds, Mutual Fund Units, Equity and ETF # Total Funds at market value 58#59BAGIC: LOB wise Net Loss ratio Line of Business Q1 FY24 Net Loss Ratio B Allianz BAJAJ Caringly yours Q1 FY23 Fire Marine Cargo Motor OD Motor TP Motor Total Engineering Personal Accident Health (Retail+Group) Crop Total 67.1% 71.8% 50.8% 88.4% 71.2% 82.2% 79.7% 88.6% 76.0% 86.0% 72.2% 121.4% 54.0% 61.1% 83.9% 76.7% -6.1% -202.4% 74.3% 77.9% Total (Ex Crop) 75.0% 80.1% Net Loss Ratio = Net claims incurred divided by Net Earned Premium | LOB trend for major LOB 59#60BAGIC: LOB Growth (Major LOBS) Line of Business ** Commercial Lines* Motor OD Motor TP Motor Total GDPI Growth B Allianz BAJAJ Caringly yours Q1 FY24 BAGIC Growth Q1 FY24 Industry Growth 22.1% 6.6% 36.8% 22.0% 17.7% 20.2% 26.0% 20.9% Personal Accident + Travel 24.8% 30.0% Health (retail + group)* Total Total (Ex Crop & Govt. Health) 33.7% 18.9% 22.2% 16.5% 26.7% 16.5% *Health includes Retail and Group, and excludes Govt. Health | PA includes retail and group business **Commercial Lines: Fire, Marine, Engineering & Liability Note: Industry growth is excluding standalone and specialized insurers 60 60#61Additional Information - BALIC#62BALIC: Investment Performance (Shareholder Fund) B BAJAJ Allianz LIFE GOALS. DONE. 10,229 10,990 AUM~ 10,678 FY21 FY22 FY23 14.2% FY21 10,056 10,400 Q1 FY 23 Q1 FY 24 Total Return* 5.2% 4.1% 2.0% FY22 FY23 Q1 FY 23 8.7% Q1 FY 24 All Figures in Rs Crore Asset mix as on 30 June 2023: Corporate Bonds 24.3%, G-Sec 47.9%, Equity 16.3%, FD & other assets 11.5% (on Market value basis) Capital gains booked in Q1 FY24 were Rs. 77 cr (including impairment) ☐ Unrealized gains/(loss) in the Shareholder Fund was Rs. 198 cr as on 30 June 2023 Unrealized gain /(loss) on equity portfolio Rs. 251 cr Unrealized gain/(loss) on other than equity portfolio Rs. (53) cr ~On Market Value Basis |*Total return includes change in unrealized gain/(loss) & impairment charged during the period, | **While return in Q1 FY24 is higher mainly on account of Mark-to-Market (Gains) of Rs. 159 cr compared to Mark-to-Market (Losses) of Rs. (447) cr in Q1 FY23; AUM: Assets under Management 62 62#63BALIC: Regular Premium Ticket Size Whole Company B BAJAJ Allianz LIFE GOALS. DONE. Non Par Savings All Figures in Rs. FY23 Q1 FY24 FY23 Q1 FY24 increase of 10% decrease of 3% increase of 65% increase of 12% 85,032 85,099 77,634 73,503 71,475 67,456 57,782 59,976 51,650 36,579 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Par Savings ULIPS FY23 Q1 FY24 FY23 Q1 FY24 increase of 15% increase of 1% decrease of 10% increase of 8% 1,09,780 108,461 102,959 95,055 94,378 95,268 97,820 82,161 87,422 81,120 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 63#64Thank You B FINSERV BAJAJ#65Disclaimer B FINSERV BAJAJ This presentation has been prepared by Bajaj Finserv Limited (the "Company") solely for your information and for your use. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company available at www.bajajfinserv.in, before making any decision on the basis of this information. This presentation contains statements that may not be based on historical information or facts but that may constitute forward-looking statements. These forward looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience in recent years but these assumptions may prove to be incorrect. Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. 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