Corporate Briefing Session

Creating a better tomorrowIGI Holdings Limited

Corporate Briefing Session

IGI Holdings LimitedApril 29, 2021


Content

1. Company Overview

2. Investment Portfolio

3. Financial Highlights

4. Questions & Answers


About IGI Holdings Limited

• Public Listed Company – operating as an investment holding company

• Has investments in financial services, packaging, food and beverage, household cleaning products, pharma and ITcompanies

• Has Credit Rating AA (Long Term) and A1+ (Short term) by PACRA.

IGI Holdings Limited

IGI General Insurance

Limited100%

IGI FSI (Pvt.) Limited

100%

IGI Investments (Pvt.) Limited

100%

IGI Life Insurance

Limited82.69%

IGI FinexSecurities Limited

100%

FMCG47%

PACKAGING24%

FINANCIAL SERVICES

20% REAL ESTATE2%

PHARMA3%

IT4%

OTHERS0%


Content

1. Company Overview

2. Investment Portfolio Performance




IGI General Insurance Limited


Product Portfolio

Property & Casualty

Motor

Health

Engineering & Bond

Travel

Takaful

Liability

Market share ~6.7%

Fire36%

Marine12%

Motor25%

Health9%

Misc18%

Marine


Major Customers


Our Reinsurance Partners - 2021

IGI General

Hannover Re

Peak Re

SCOR Global P&C

Saudi Re

Echo Re

Kuwait Re

Arab Insuran

ce GroupKorean

Re

Pak Re

QianhaiRe

TIM

AtradiusRe

Labuan Re

Llyod’ssyndicate

LeadFollower


Financial Highlights – December 31, 2020 vs 2019

Gross Written Premiums

Rs. 6,014 m vs 5,612 m

Net Premium Revenue

Rs. 2,321 m vs Rs. 2,397 m

Underwriting profit (incl. Takaful)

Rs. 343 m vs 303 m

Investment Income

Rs. 369 m vs Rs. 491 m

Profit before Tax

Rs. 685 m vs Rs. 807 m

Profit after Tax

Rs. 486 m vs Rs. 573 m


IGI Investments (Pvt.) Limited


About IGI Investments

• Operating as an investment holding company

• Has an investment base of Rs. 44 billion (Book ValueRs. 16 billion)

• Has investments in packaging, FMCG pharma, realestate and IT sectors

• During the year 2020, completed its investment of 45%equity stake in SC Johnson & Son of Pakistan(Private) Limited, a leading global manufacturer ofhousehold cleaning products and products for homestorage, air care, pest control and shoe care.

FMCG59%

PACKAGING30%

FINANCIAL SERVICES

0%REAL ESTATE

2%

PHARMA3%

IT5%

OTHERS1%


INVESTMENT PORTFOLIO

IGI

Investments

Packages

Limited

Packages

Real

Estate

Tri-Pack

Films Ltd

Nestle

Pakistan

Ltd

Sanofi

Aventis

Systems

LimitedSiemens

Engg.

29.9% 24.8% 9.7% 9.75% 3.8% 0.85%

Other

Investments

19.1%

Coca Cola

Beverages

Ltd

0.5%


Financial Highlights – December 31, 2020 vs 2019

Dividend Income

Rs. 1,143 m vs Rs. 1,246 m

Profit after Tax

Rs. 727 m vs Rs. 784 m

Investments

Rs. 41,613 m vs Rs. 46,060 m

Equity

Rs. 39,468 m vs Rs. 43,859 m


Dividend income

S. No. Name of CompanyNumber of shares

held

Dividend

FY 2020

Dividend

FY 2019

Dividend Per

Share

FY 2020

Dividend Per

Share

FY 2019

1 Nestle Pakistan 4,419,666 773,442 756,185 175 173

2 Packages Limited 26,707,201 320,486 400,608 12 15

3 Sanofi Aventis Pakistan 1,841,739 14,734 55,252 8 30

4 Systems Limited 4,606,836 10,365 8,376 2.25 2.00

5 Coca Cola Beverages Pakistan Limited 12,433,934 10,320 - 0.83 -

6 Packages Real Estate 100,000,000 7,500 - 0.08 -

7 Siemens Pakistan 70,031 3,221 5,253 46 75

8 Central Depository Company Of Pakistan Limited 1,624,995 1,226 1,194 0.94 1.23

9 Zil Limited 199,169 697 299 3.50 1.50

10 LSE Financial Service 843,975 591 675 0.70 0.80

11 Kissan, Punjab and Haider Growers 1,781 146 293 82 165

12 Tri Pack Fims Limited 3,750,417 - 15,002 - 4

13 International Industries Ltd. 504,472 - 2,523 - 5.50

14 Techlogix International Limited 355,718 - 166 - 0.44

Total 1,142,728 1,245,826


IGI Life Insurance Limited


Product Suite of

Individual Life Products

Conventional Savings Plans

Unit Linked Insurance

Plans

Medical Coverage Products

Individual Accidental and Health

Plans

Corporate Employee

Benefit Products

Group Life Insurance

Plans

Group Medical

Coverage Plans

Attempting to Disrupt through “Innovation”

Brought in Vitality to Pakistan


Vitality – A Success Story

Launched in 1997

200 thousand

new members

each month

Every single minute this

platform tracks roughly a

1,000 activities and picks up

about 50 biometric

readings

The model is built on a

foundation of 40 million

life years of health, life and

insurance data linked to

wellness behavior

https://www.linkedin.com/pulse/dia-interview-andre-nepgen-discovery-all-ecosystems-roger-peverellihttps://www.forbes.com/sites/tobyshapshak/2018/11/14/south-africas-biggest-medical-aid-discovery-launches-first-behavioural-bank/#6dedd2a57900https://www.vitality.co.uk/careers/our-history/

Operates in more than 22 countries globally* with over 10 million Vitality members.

https://www.linkedin.com/pulse/dia-interview-andre-nepgen-discovery-all-ecosystems-roger-peverelli

https://www.forbes.com/sites/tobyshapshak/2018/11/14/south-africas-biggest-medical-aid-discovery-launches-first-behavioural-bank/#6dedd2a57900

https://www.vitality.co.uk/careers/our-history/


Our Business Partners

Banca Partners

• Standard Chartered Bank

• Bank Alfalah

• Soneri Bank

• Silk Bank

• Dubai Islamic Bank

Reinsurance Partners

• Hannover Re

• Munich Re

Corporate Relations

Over 500 Relations


Gross Premium Analysis

Overall Gross Premium Rs. 6,610 million Jan – Dec 2020

Individual Life- Agency 21%

Bancassurance33%

Corporate Business46%


Profit and Loss Account For the year ended December 31, 2020

• The Gross premium written by the

Company increased by 28%.

• Investment income increased by 19%

due to Pro-active Investment

Management.

• The loss after tax amounting to Rs. 96

million as compared to loss after tax

of Rs. 176 million in the

corresponding period last year due to:• The major reason for this loss is

increase in acquisition costs for

expanding its distribution

channels of business and

adverse loss ratios due to

COVID-19.

Description

December 31,

2020

December 31,

2019

Rupees in 000's

Gross Premium 6,160,785 4,814,857

Net Premium 5,949,885 4,656,663

Net claims (including surrenders) 4,295,989 4,770,078

Investment Income (including other

income)1,996,733 1,659,314

Charge / (reversal) of insurance liabilities (1,237,032) (154,169)

Acquisition cost 1,682,731 927,462

Admin Expenses 836,853 1,018,403

Loss before tax (135,987) (245,797)

Loss after tax (95,725) (176,718)

LPS (0.56) (1.29)


Assets Under Management

IGI LifeRs. 18,522M

(Dec-19: 17,690M)

Policy Holders Fund

Rs. 16,862M

(Dec-19: 16,075M)

Life ParRs. 2,036M

(Dec-19: 1,865M)

PIBs/ T-Bills

Rs. 2,049M (100%)

Life Non ParRs. 5,330M

(Dec-19: 6,120M)

PIBs/ T-Bills

Rs. 4800M (100%)

Pension (PIBs) Rs. 112M

(Dec-19: 119M)

Investment Linked Rs. 9,734M

(Dec-19: 7,971M)

Shareholders Fund

Rs. 1,660M

(Dec-19: 1,615M)

T-Bills/PIBs/TFCs/IF

Rs. 1,495M (90.1%)

Equity Funds/ SMA

Rs. 148M(8.9%)

Bank Deposits

Rs. 17M (1.0%)


Year - QuarterEmbedded Value

(PKR Million)Change in

Embedded Value% Change

2017-Q4 2,567-

0.0%

2018-Q4 2,273 -294 -11.5%

2019-Q4 2,321 48 2.1%

2020-Q4 2,660 339 14.6%

2,567

2,273

2,321

2,660

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2017-Q4 2018-Q4 2019-Q4 2020-Q4

Embedded Value (PKR Million)

2.1%

14.6%

-11.5%


IGI Finex Securities Limited


Introduction to IGI Securities

Established in 1994; Serving for 25 years.

TREC holder of Pakistan Stock Exchange; Corporate member

of Pakistan Mercantile Exchange.

Branch network in Karachi, Lahore, Islamabad, Faisalabad,

Rahim Yar Khan & Multan

Online trading platform (internet and mobile based) that caters

to clients locally as well as abroad.Karachi (Head

Office)

Karachi

Rahim Yar Khan

Multan

Faisalabad

Lahore

Islamabad


Products and Services

Equity Brokerage

10,000+ clients in more than 60 cities across Pakistan as well as abroad; Comprising institutions,

corporate, high net worth and retail investors.

Market share of +/- 3%.

Commodity Brokerage

Commodity brokerage service provided by IGI Securities offers trading opportunities to customers at

Pakistan Mercantile Exchange (PMEX) – online commodity exchange of Pakistan.

Research

The research coverage extends over 45 companies across major sectors. Our research papers include:1. Day Break: IGI’s daily publication keeping an investigative eye on news on the corporate, economic and

political front.

2. Equity Research: In depth individual, thematic, and sectoral reports spanning across major sectors.

3. Economy and Strategy: Annual Strategy, Monthly and Quarterly Economic reviews, Monetary Policy

preview and reviews, Federal Budget preview and reviews.

4. Flash Note: This report provides information and analysis by Research team on new updates and corporate

results.


Retail Footprint

Offering online trading to clientele through iTrade (Internet & Mobile Trading)

Client base spread over 60 cities across Pakistan as well as abroad

Over 10,000 retail accounts

City Wise Client Distribution

Karachi Lahore Faisalabad Islamabad Rawalpindi

Multan Peshwae Sialkot Others


Financial Highlights – 2019 & YTD Mar 2020

PKR mn Q1FY21 Q1FY20 % change 2020 2019 % change

Average daliy volume (No. of shares) - PKR mn 645 263 145% 389 199 95%

Average daily value (Rs.) PKR - bn 31 10 210% 15 8 88%

Operating revenue 88,056 40,178 119% 186,970 97,163 92%

Other income / (expenses) 8,414 10,978 -23% 39,346 35,040 12%

96,470 51,156 89% 226,316 132,203 71%

Administrative and operating expenses 58,491 35,356 65% 173,544 121,975 42%

Financial Charges 169 228 -26% 658 715 -8%

37,810 15,572 143% 52,114 9,513 448%

Reversal of provision / (provision for doubtful debts 0 0 n/m 0 8 -100%

Profit / (loss) before taxation 37,810 15,572 143% 52,114 9,521 447%

---- Rupees in '000 ----- ---- Rupees in '000 -----


Content

1. Company Overview





Standalone financial performanceYear ended December 31, 2020


IGI HoldingsProfit and Loss

Dividend Income

Rs. 1,110 m vs Rs. 1,107 m

Profit before tax

Rs. 975 m vs Rs. 912 m

Profit after tax

Rs. 944 m vs Rs. 897 m

Earnings per share

Rs. 6.62 vs Rs. 6.29


IGI HoldingsBalance Sheet

2019 Dividend paid Rs. 428 M

Long term loan installment repaid Rs 300 M

Reversal of impairment on IGI Finex Rs 101 M

6

8

4

6

3

5

57 68

199

48 48 76

2015 2016 2017 2018 2019 2020

Dividend per share (Rs.) Payout ratio (%)

Dividend per Share

Dec 31, 2020 Dec 31, 2019

Assets

Investment in subsidiaries 15,837,753 15,736,333

Dividend receivable 150,000 -

Tax recoverable 46,724 54,972

Withholding tax recoverable 6,530 6,530

Deferred tax asset 21,086 43,958

Cash and Bank 32,385 11,363

16,094,478 15,853,156

Liabilities

Long term loan 600,000 900,000

Short term loan 1,157,699 1,121,163

Accrued markup 39,516 37,280

Other payable 8,241 9,930

Unclaimed dividend 28,749 28,464

1,834,205 2,096,837

Net Assets 14,260,273 13,756,319

Net Assets - IGI Bank

- Assets 233,155 238,614

- Liabilities 201,795 220,927

31,360 17,687

Equity 14,291,633 13,774,006


Consolidated financial performance of the

GroupYear ended December 31, 2020


IGI Holdings consolidated resultsFY 2020 vs 2019

Revenue

Rs. 11,499 m vs Rs. 9,902 m

Profit before tax

Rs. 2,222 m vs Rs. 939 m

Profit after tax attributable to Parent

Rs. 1,737 m vs Rs. 684 m

Earnings per share

Rs. 12.18 vs Rs. 4.80


IGI Holdings - Consolidated Profit and Loss

2,222

122

110 43 2 52

1,178 21

939

PBT for 2019 IGI General IGI Life IGI Finex IGI Investments

(excluding

dividend from

associates)

IGI Holdings

(excluding

divdend from

subsidiaries)

Share of profit

from associates

Others PBT for 2020

Rupees in millions

Increase in profitability of Packages / Packages Convertors and BullehShah by Rs. 4.2b (IGI Share: Rs 1.3b).

Packages Mall incurred loss of Rs 308m in 2020 vs profit of 42m in 2019 (Sep 2019) due to COVID-19 rent concessions provided to tenants (IGI

Share: 86m).SC Johnson post acquisition loss for 3 months Rs 121m (IGI Share: 55m)Investment income declined by

Rs 122m during the year mainly due to decline in

interest rates.

Loss for FY 2020: Rs. 136m vs Loss for FY 2019:

Rs. 246m

Decrease in Operating expenses by Rs 31m and Finance Cost by Rs 18m


Content

1. Company Overview





Important DisclaimerTHIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY

SECURITIES OR ANY INVESTMENT

This presentation has been prepared by IGI Holdings Limited (“IGI Holdings”) solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance

should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein, or any opinion rendered thereto. The information

contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of

the presentation. Neither IGI Holdings nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any

responsibility and/or liability of any nature whatsoever (in contract or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection

with this presentation.

This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any

securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment

decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other

consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

The presentation may contain statements that reflect IGI Holdings own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about

the future, which are beyond IGI Holdings control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or

standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant

forward-looking statements. IGI Holdings does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this

presentation and it does not make any representation, warranty (whether express or implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In

addition, past performance should not be taken as an indication or guarantee of future results.

Certain data in this presentation was obtained from various external data sources that IGI Holdings believes to its knowledge, information and belief to be reliable, but IGI Holdings has not verified

such data with independent sources and there can be no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of the included data. Accordingly, IGI

Holdings makes no assurance, representation or warranty as to the accuracy, sufficiency, correctness or completeness of that data, and such data involves risks and uncertainties and is subject

to change based on various factors.

You agree to keep the contents of this presentation strictly confidential. All or any part of this presentation may not be taken away, reproduced, copied, redistributed,

retransmitted or disclosed in any manner or form and for any purpose whatsoever.

By attending this presentation, you are agreeing to be bound by the foregoing limitations.


Thank you

Corporate Briefing Session

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