Results for the quarter ended December 31, 2013

Investor Presentation
February 7, 2014

Overview - Strong Fundamentals

Slide 2

Key Performance Highlights

Networth and Book value Per Share
(Rs. Billion) (Rs.) (Rs. Billion)

Total Assets
(%)

Capital Adequacy
* Based on standalone financials

125.6 123.7
417.2

440.5

20.4%
511

17.0%

17.1%

16.6%

120.1 118.2 489 481

504
397.5

405.9

Dec-12

Mar-13

Sep-13

Dec-13

Dec-12

Mar-13

Sep-13

Dec-13

Dec-12

Mar-13

Sep-13

Dec-13

Total Income
(Rs. Billion)
18.7 18.9

Profit After Tax

(Rs. Billion)
2.7

Earnings Per Share

(Rs.)
10.8

1.8 1.7

7.4 6.8

17.2 16.9
1.0
4.1

Q3 FY13

Q4 FY13

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q2 FY14

Q3 FY14

Slide 3

Key Performance Highlights

Net debt - equity ratio: 1.83

CRISIL A1+ Highest credit rating for short 1.65 term borrowing program
1.70 1.80 1.83

ICRA A1+ Highest credit rating for short Dec-12 term borrowing program
Mar-13 Sep-13 Dec-13

CARE AAA Highest credit rating for long term borrowing program

Well capitalized to address future growth opportunities

Slide 4

Reliance Life Insurance

Slide 5

Qualitative Highlights - Reliance Life Insurance

As on Dec 31, 2013, Reliance Life was positioned amongst Top 5 private sector insurers (as per Ind. WRP) New Business Premium grew by 18% in Q3 FY14

Achieved highest market share gain in the industry (from 4% in FY13 to 8% in 9m FY14) Average ticket size was over Rs. 20,400 (+34%)

Solvency margin rose to 493%

Reduction in surrender profit; increase in business profit Continued emphasis on Distribution initiatives (incl. proprietary channels)

Nationwide distribution network with over 900 offices

Focus on promoting a solution based selling approach

Slide 6

Financial Performance - Reliance Life Insurance

New Business Premium
(Rs. Billion)
5.1 4.7 4.0 3.4 5.1

Renewal Premium
(Rs. Billion)
8.1

Total Premium (net of reinsurance)

(Rs. Billion)
12.7
10.8

6.0

5.8

5.7

9.3

9.1

9.7

4.0

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Weighted Received Premium

(Rs. Billion)
4.8 4.0

Profit Before Tax

(Rs. Million) (%)
2,902

Business Mix (Individual)

4.8 3.9

2.9 2.6

3.0 2.4

75%

2.8

76% 80% 86% 88%

2.8
1,356

402

565 272

25% Q3 FY13

24%

20%
Q1 FY14

14% Q2 FY14

12%
Q3 FY14

Q3 FY13

Q4 FY13 WRP

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13*

Q1 FY14

Q2 FY14*

Q3 FY14

Individual WRP

* Includes policyholders surplus transferred to shareholders account

Q4 FY13
ULIP

Traditional

Slide 7

Financial Performance - Reliance Life Insurance

No. of individual policies sold
(in 000s)
219
200

Average Ticket Size (approx.)

19,600

20,400

156

16,500

17,100

149

151

15,300

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Private Sector Market Share

(%)
10.4%

Funds under Management

(Rs. Billion)

193.7

7.0% 5.9% 4.7% 3.9%

181.9

180.1 175.3

180.7

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13
Slide 8

Reliance General Insurance

Slide 9

Qualitative Highlights - Reliance General Insurance

As on Dec 31, 2013, Reliance General Insurance was ranked amongst the Top 5 private sector insurers

No. of policies sold rose to 0.9 million in Q3 (+26%)

Manual cover-notes reduced from 15% to 9%

Direct sales contributed 21% of total premium (14% in Q3 FY13)

Combined ratio at 125%

Provision due to 3rd party motor claims reserves

(Rs. 198 million) and exceptional provisioning for Motor Decline Risk pool (Rs. 135 million)

Investment book grew to Rs. 37 billion (+15%)

Intermediaries rose to over 14,400 intermediaries
Highest no. of new agents created in this year

amongst private sector insurers

Slide 10

Financial Performance - Reliance General Insurance

Gross Written Premium
(Rs. Billion)
7.1 5.8
5.0

Profit Before Tax

(Rs. Million)
170
156 162

Combined Ratio
(%)
125%*

6.0
120%

4.9
102

106
115% 112%

113%

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

* Includes one-time negative impact of Motor Decline Risk pool

Business mix

Investment Book
(Rs. Billion) (in 000s)

No. of policies issued

922 932

Marine Fire & 1% Engg. 9% Health 16%

Others 11%

36.7

37.3
741

840

822

34.3

Motor 63%

32.6

32.5

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Slide 11

Reliance Commercial Finance

Slide 12

Qualitative Highlights - Reliance Commercial Finance

Amongst the leading lenders in the Indian NBFC sector Continued focus on asset-backed lending and productive asset creation

Key focus areas: Mortgage, SME and Commercial Vehicle finance

Securitised loans of Rs. 2 billion in Q3

NIM improved to 5.6% in Q3 FY14 driven by higher yields and lower funding costs Caters to over 71,000 customers Geographical presence in 37 locations across the country
Slide 13

Segment details - Reliance Commercial Finance

(As on Dec 2013)

Segment

Focus Area for growth Self Employed / Affordable Housing in Tier I & II cities Self employed / SMEs Small operators / FTBs / Agriculturists Cluster-based growth approach

LTV

Share in total 16% 31% 12% 30%

Avg. Yield 13% 16% 16% 15%

Home Loan LAP Commercial Vehicles SME

55% 42% 89% 65%

40

200

Tenure in months

Rs. in million

30

150

20
10

100
50

0
Home Loan LAP Average Ticket Size CV Average Tenure (months) SME

Slide 14

Financial Performance - Reliance Commercial Finance

AUM and Total Loan Portfolio
(Rs. Billion)
163.8
158.7

Disbursements
(Rs. Billion) (%)

Gross NPLs

159.5

161.0

164.1
23.1

24.5 20.1

24.2

137.6

136.5

135.6

132.0

136.9

2.3% 1.9% 1.7%

2.3%

2.4%

16.5

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

AUM Total Loans

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Total Income and Profit Before Tax

(Rs. Billion)
5.5 5.3 5.4 5.4 5.6

Yield and Net Interest Margin

(%) (%)

Cost-to-income ratio

14.2%

15.0%

15.4% 15.1%

15.4%

13.4%
5.6%

15.2%
13.3%

16.5%

16.0%

1.2 0.8 0.8

0.9

1.0

4.2%

4.9%

5.0%

5.3%

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13 Yield

Q1 FY14

Q2 FY14

Q3 FY14 NIM

Total Income

Profit Before Tax

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Slide 15

Reliance Capital Asset Management

Slide 16

Qualitative Highlights - Reliance Mutual Fund

Amongst the Top 2 Mutual Funds in India

Continues to focus on improving realisations in debt and equity segments

Leading AMC in garnering AUMs from beyond Top

15 cities category (18% share in total AUMs)

Retail debt forms 36% of overall debt AUMs Retail Gold Fund maintained 25% market share in the Gold Fund category Wide distribution network - over 170 customer touch points and 42,000 empanelled distributors

Slide 17

Financial Performance - RCAM

Average Assets under Management
(Rs. Billion)
1,878.3

Average Mutual Fund AUMs

(Rs. Billion)
1,024.9
932.5 237.4

1,788.2 1,760.9

906.4 286.5

945.8 271.9

977.7

1,731.3

249.3

222.9

1,647.8

619.9

673.9

728.5

709.6

787.4

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Debt

Equity

Total Income
(Rs. Million)
2,276 2,116

Profit Before Tax

(Rs. Million)

1,949

1,151

1,869

1,879
843

771
667 583

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q2 FY14

Q3 FY13

Q4 FY13

Q1 FY14

Q2 FY14

Q3 FY14

Slide 18

Broking and Distribution businesses

Slide 19

Qualitative Highlights - Broking and Distribution

Broking business consists of :

Reliance Securities (2nd largest broker in

the retail segment), and Quant Securities

that focuses on the wholesale clientele

One of the largest private sector partners for

Western Union Money Transfer in India

Pan India presence with over 6,600 outlets Profitability remained muted due to decrease in broking volumes in the equities as well as the commodities segments

Slide 20

Financial Performance - Broking & Distribution

Broking Total income & Profit Before Tax
(Rs. Million)

Equity and Commodity Broking Accounts

(in 000s)

Average Daily Turnover (Stock exchanges and Commodities)

(Rs. Billion)

788 631 538

504

709

715

719

724

727 22.8

26.1

25.2 22.1
17.7

524

8.3 100 111 4

Q3 FY13 Q4 FY13 Q1 FY14

8.2

8.1
3.2

3
Q2 FY14

-44 Q3 FY14

39 Q3 FY13

40 Q4 FY13 Equity

3.5

40 Q1 FY14

41 Q2 FY14 Commodity

42 Q3 FY14 Q3 FY13 Q4 FY13 Q1 FY14

Q2 FY14

Q3 FY14

Total Income

Profit Before Tax

Stock exchanges

Commodities

Distribution Total Income & Profit Before Tax

(Rs. Million)

Money Transfer Transactions

(In 000s)
760

Wealth Management AUM

(Rs. Billion)
14.0 11.1 11.6

415 356 300 352 357

614 627 674

719

10.1 8.7

58
-4 Q3 FY13 Q4 FY13

-8
Q1 FY14

-8
Q2 FY14

-28
Q3 FY14
Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14

Total Income

Profit Before Tax

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Slide 21

Other Businesses

Slide 22

Other Businesses - Reliance Asset Reconstruction

Reliance ARC is in the business of acquisition, management and resolution of distressed debt / assets The business also focuses on bilateral deals with banks and works with the management of the NPA company for facilitating time bound solutions

As on December 31, 2013, the assets under management rose to Rs. 7 billion (Rs. 732 million as on September 30, 2013)
Companys own Investment in NPAs acquired rose from Rs. 463 million

as on Sept 30, 2013, to Rs. 898 million

Slide 23

Other Businesses - Reliance Equity Advisors (REAL)

Manages a private equity fund, the Reliance Alternative Investments Fund Private Equity Scheme I - that makes late stage investments in mid-sized

Indian companies

The Fund is fully invested in 7 companies Funds existing investments are closely monitored on an ongoing basis, and continue to perform at or above expectations

The portfolio has been valued at 1.41 times cost as on March 31, 2013 The Fund will start focusing on exits from 2014 onwards

Slide 24

Shareholding Pattern
(As on December 31, 2013)

DIs / Banks / Mutual funds 5.3%

Indian public 19.0% Promoters 54.1%

Foreign Investors 21.6%

1.1 million retail shareholders Constituent of CNX Nifty Junior and MSCI India Traded in futures & options segment
Slide 25

Thank you

Annexure

Slide 27

Consolidated Financials

Profit & Loss statement

(Rs. Million) Interest Income Capital Gains / Dividend Premium Earned Mgmt. & Advisory Fee Brokerage & Comm. Other Income Total Income Interest & Fin. Charges Other Expenses Total Expenses Profit before tax Net profit after tax Q3 FY14 9,551 350 Q3 FY13 8,345 729 Change (y-o-y) 14% (52)% Q2 FY14 9,065 793 Change (q-o-q) 5% (56)% FY 2013 32,067 11,588 20,733 6,416 2,208 2,174 75,186 23,430 43,453 66,883 8,303 8,119
Slide 28

5,994 1,702
636 658 18,892 6,285 10,495 16,780 2,112 1,661

5,079 2,063
503 440 17,158 5,956 9,789 15,745 1,413 1,008

18% (17)%
27% 50% 10% 6% 7% 7% 49% 65%

5,832 1,783
573 643 18,690 6,268 10,783 17,051 1,639 1,808

3% (5)%
11% 2% 1% (3)% (2)% 29% (8)%

Financials - Reliance Life Insurance

Profit & Loss statement

(Rs. Million) First year premium Single premium Total New business premium Renewal Premium Total premium (net of reinsurance) Profit before tax Total funds under management Q3 FY14 3,862 150 4,012 5,747 9,713 272 180,727 Q3 FY13 2,860 531 3,391 5,963 9,302 402 193,659 Change (y-o-y) 35% (72)% 18% (4)% 4% (32)% (7)% Q2 FY14 4,820 267 5,087 5,782 10,769 1,356* 175,250 Change (q-o-q) (20%) (44)% (21)% (1)% (10)% (80)% 3% FY 2013 1,188 188 1,377 2,669 4,015 3,804* 181,894

* Includes policyholders surplus transferred to shareholders account

Slide 29

Financials - Reliance General Insurance

Profit & Loss statement

(Rs. Million) Gross Written Premium Profit / (loss) before tax Investment book Combined ratio No. of policies issued (in million) Q3 FY14 5,994 106 37,318 125% 0.9 Q3 FY13 4,963 156 32,550 112% 0.7 Change (y-o-y) 21% (32)% 15% 26% Q2 FY14 5,832 162 36,705 120% 0.8 Change (q-o-q) 3% (35)% 2% 13% FY 2013 20,362 (928) 32,525 121% 2.9

Slide 30

Financials - Reliance Commercial Finance

Profit & Loss statement

(Rs. Million) Disbursements Net Interest Income Q3 FY14 24,171 1,796 Q3 FY13 23,124 1,446 Change (y-o-y) 5% 24% Q2 FY14 20,141 1,601 Change (q-o-q) 20% 12% FY 2013 87,446 5,901

Total Income Interest expenses

5,625 3,274

5,331 3,553

6% (8)%

5,364 3,327

5% (2)%

21,168 13,778

Other expenses
Provisions Profit before tax

900
405 1,046

716
221 841

26%
83% 24%

883
245 908

2%
65% 15%

3,115
855 3,420

Slide 31

Financials - RCAM

Profit & Loss statement

(Rs. Million)
Income Expenses Profit before tax (Rs. Billion) Debt Equity Gold Managed Accounts

Q3 FY14
1,879 1,036 843

Q3 FY13
2,276 1,693 583

Change (y-o-y) (17)% (39)% 45%

Q2 FY14
1,869 1,203 667

Change (q-o-q) 1% (14)% 26%

FY 2013
7,346 4,450 2,896

Dec 31, 2013 764.0 237.4 23.5

Sept 30, 2013 684.0 222.9 25.7

Dec 31, 2012 589.5 286.5 30.4

Mar 31, 2013 644.7 271.9 29.3

14.5
791.4 47.4 1,878.3

14.4
761.3 52.7 1,760.9

15.9
667.5 58.1 1,647.8

14.7
707.6 63.2 1,731.3
Slide 32

Pension Funds
Offshore Funds Total AAUM

Financials - Broking and Distribution

Profit & Loss - Broking

(Rs. Million) Total Income Total expenses Profit before tax Q3 FY14 524 568 (44) Q3 FY13 631 532 100 Change (y-o-y) (17)% 7% Q2 FY14 504 501 3 Change (q-o-q) 4% 13% FY 2013 2,581 2,206 375

Profit & Loss - Distribution

(Rs. Million)
Total Income Total expenses

Q3 FY14
357 385

Q3 FY13
356 360

Change (y-o-y) 7%

Q2 FY14
352 360

Change (q-o-q) 1% 7%

FY 2013
1,200 1,127

Profit before tax

(28)

(4)

(8)

73
Slide 33

Human Capital

~17,500 employees ~80% in Customer Facing

Qualification profile
MBAs / CAs 12%

roles
Young workforce
Post Graduates and
Graduates and Others 74%

Post Graduates 14%

Professionals form over 25%

of the total workforce
~2,000 women employees

Young & vibrant workforce - average age of 33 years

Slide 34