Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — FY2024 Earnings Presentation
47 slides from Edelweiss Financial Services's earnings presentation, May 2024
Slide 1: Earnings update – Quarter and Year ended Mar 24
US $ version Edelweiss Financial Services Limited Earnings update – Quarter and Year ended Mar 24
Slide 2: Contents
Contents 1 Overview for year ended Mar 24 3 2 Performance highlights 6 3 Business performance 22 4 Governance & corporate responsibility 40 Please refer to the detailed business update filed for Zuno General Insurance (formerly Edelweiss General Insurance) 2
Slide 3: Overview – Year ended Mar 24
Overview Year ended Mar 24 Ge Edelweiss Ideas create, values protect
Slide 4: Edelweiss at a glance – year ended Mar 24
Edelweiss at a glance – year ended Mar 24 Net Worth Ex-Insurance PAT BVPS $746 Mn $79 Mn $0.6 (FV $0.1) Net Debt Liquidity as a % of Debt $1,570 Mn 16% 4
Slide 5: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Alternative Asset Housing General Life Mutual Fund Reconstruction NBFC Asset Mgt Finance Insurance Insurance Edelweiss Edelweiss Edelweiss Asset ECL Finance Nido Home Zuno General Edelweiss Alternate Asset Reconst
Slide 6: Performance Highlights
Performance Highlights (e. Edelweiss Ideas create, values protect
Slide 7: Performance highlights – year ended Mar 24
Performance highlights – year ended Mar 24 1 Healthy Profitability: Ex-Insurance PAT at $79 Mn; Consol PAT grew by 22% YoY Facilitated by robust growth in key business metrices 2 Strong scale up in Alternative Asset Management, Mutual Fund and General Insurance Alternative FPAUM up 39% YoY, MF Equit
Slide 8: Healthy profitability: Ex-Insurance PAT at $79 Mn
1 Healthy profitability: Ex-Insurance PAT at $79 Mn PAT for the year in $ Mn Alternative Asset Asset EFSL Consol Mutual Fund Management Reconstruction 50 43 41 25 38 19 5 2 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 22% YoY 32% YoY 112% YoY 12% YoY 8
Slide 9: Earnings distribution across businesses
1 Earnings distribution across businesses $ Mn Quarter Ended Year Ended Business Mar 24 Mar 23 Mar 24 Mar 23 Alternative Asset Management 9 5 25 19 Mutual Fund 1 0 5 2 Asset Reconstruction 12 11 43 38 NBFC 5 4 18 17 Housing Finance 1 0 2 2 General Insurance (4) (3) (15) (15) Life Insurance (2) (5) (
Slide 10: Robust growth in key business metrices (1/3)
1 Robust growth in key business metrices (1/3) Alternative Asset Management AUM at $6,561 Mn, up 18% YoY; FPAUM at $3,862 Mn, up 39% YoY Conferred “Market Award India Category” in Asian Investor Asset Management Award Mutual Fund AUM at $15,233 Mn, up 21% YoY; Equity AUM at $5,241 Mn, up 61% YoY Equ
Slide 11: Robust growth in key business metrices (2/3)
1 Robust growth in key business metrices (2/3) NBFC Disbursed $50 Mn in Q4; $126 Mn in the year, 80% via CLM Wholesale book reduced by 42% YoY to $498 Mn Housing Finance Disbursed $66 Mn in Q4; $159 Mn in the year, 32% via CLM Partnership with State Bank of India continues to deepen 11
Slide 12: Robust growth in key business metrices (3/3)
1 Robust growth in key business metrices (3/3) General Insurance Fastest growing in the industry, GWP of $31 Mn in Q4, up 107% YoY; $102 Mn in the year, up 54% YoY Issued 1.4 lakh policies in Q4, up 45% YoY; 4.3 lakh in the year Life Insurance Gross Premium of $97 Mn in Q4, up 19% YoY; $231 Mn in th
Slide 13: Strong scale up in Alternative, Mutual Fund and General Insurance
2 Strong scale up in Alternative, Mutual Fund and General Insurance in $ Mn Alternative Asset Mgt Mutual Fund General Insurance FPAUM Equity AUM Gross Premium 3,862 5,241 102 2,783 3,250 66 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 39% YoY 61% YoY 54% YoY 13
Slide 14: Customer assets grew by 13% YoY
3 Customer assets grew by 13% YoY in $ Mn Customer Alternative Asset Mgt Mutual Fund Assets AUM AUM 25,582 15,233 6,561 22,621 5,577 12,594 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 13% YoY 18% YoY 21% YoY 14
Slide 15: With a 35% YoY expansion in customer reach
3 With a 35% YoY expansion in customer reach in Lakhs General Insurance Customer Reach Mutual Fund Folios Customers 76 15.5 51 56 37 11.7 Mar 23 Mar 24 Mar 23 Mar 24 Mar 23 Mar 24 35% YoY 32% YoY 37% YoY 15
Slide 16: On track on key priorities
4 On track on key priorities 1 Scale up profitability in Alts and MF Alts PAT 32% YoY MF PAT 112% YoY MSME HFC 2 Grow retail credit via co-lending model Disbursement 3x YoY Disbursement 2x YoY Reduction in losses in both LI and GI; 3 Insurance break even by FY27 PAT improved by 14% YoY 4 Focused red
Slide 17: EAAA minority stake sale update
4 EAAA minority stake sale update Process initiated upon significant inbound investor interest Plan a stake sale of 10-20%; expect to raise $180-240 Mn The stake sale will enable debt reduction and establish the market value of the business Process Update • Finalization of investment banker an
Slide 18: Robust balance sheet with well capitalised businesses
5 Robust balance sheet with well capitalised businesses Business Metric Value NBFC Capital Adequacy 42.4% Housing Finance Capital Adequacy 39.1% Asset Reconstruction Capital Adequacy 60.3% General Insurance Solvency Ratio 172% Life Insurance Solvency Ratio 179% 18
Slide 19: Net debt reduced by $392 Mn in the year
5 Net debt reduced by $392 Mn in the year Net Debt ($ Mn) $ Mn Business Mar 24 20% NBFC 635 1,962 Housing Finance 202 Alternative Asset Management 57 1,570 Asset Reconstruction 237 Corporate 1,054 Gross Debt 2,185 (Less) Liquidity 345 (Less) Liquid Investment* 270 Net Debt 1,570 Mar 23 Mar 24 19 * L
Slide 20: Cash flow plan
5 Cash flow plan $ Mn Apr 24 to Mar 25 Opening Available Liquidity (A) 348 Inflows Expected Inflows 1,055 Fresh Borrowings 288 Total Inflows (B) 1,343 Outflows Repayments 744 Disbursements 576 Total Outflows (C) 1,319 Closing Available Liquidity (A+B-C) 372 20
Slide 21: Assets in each tenor range adequately cover liabilities
5 Assets in each tenor range adequately cover liabilities $ Mn Assets Liabilities Excess / (Gap) Up to 1 year 1,499 1,295 204 1-3 years 1,271 1,235 36 3 years+ 1,199 708 492 21
Slide 22: Business Performance
bee Business Performance (e. Edelweiss Ideas create, values protect
Slide 23: Alternative Asset Mgt: Business performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Business performance snapshot Key Metrics for the quarter Business Update • AUM grew by 18% YoY to $6,561 Mn AUM ($ Mn) 6,561 • Fee Paying AUM at $3,862 Mn, up 39% YoY Fee Paying AUM • India Special Assets Fund III final closure at $1,320 Mn 3,862 ($ Mn)
Slide 24: Alternative Asset Mgt: Financial performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 6,561 5,577 6,561 5,577 Fee Paying AUM 3,862 2,783 3,862 2,783 Equity 92 74 92 74 Net Revenue 25 14 72 47 Opex 15 9 42 26 Profit After Ta
Slide 25: Alternative assets overview
Alternative Asset Mgt Alternative assets overview AUM – Strategy wise Fee Paying AUM – Strategy wise AUM – Geography wise 28% 43% 46% $6,561 Mn $3,862 Mn $6,561 Mn 54% 57% 72% Credit Real Assets Credit Real Assets Offshore Domestic 25
Slide 26: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update • AUM grew by 21% YoY to $15,233 Mn; market share of AUM ($ Mn) 15,233 2.37% as on Mar 24 • Equity AUM at $5,241 Mn, up 61% YoY Equity AUM • Total net inflows – 5,241 ($ Mn) o $156 Mn in the quarter o
Slide 27: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 15,233 12,594 15,233 12,594 Equity AUM 5,241 3,250 5,241 3,250 Equity 29 24 29 24 Revenue 9 5 31 20 Opex 9 5 26 18 Profit After Tax 1 0 5 2 27
Slide 28: Robust growth in AUM and customer base
Mutual Fund Robust growth in AUM and customer base MF Equity AUM ($ Mn) MF Debt AUM ($ Mn) 5,241 9,919 9,104 6,645 3,094 3,250 Mar 22 Mar 23 Mar 24 Mar 22 Mar 23 Mar 24 SIP Book ($ Mn) Active Folios (# in Lakhs) 28 15.5 18 11.7 16 9.7 Mar 22 Mar 23 Mar 24 Mar 22 Mar 23 Mar 24 Growing SIP book adds t
Slide 29: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update • Recoveries – Equity ($ Mn) 378 o $265 Mn in the quarter o $1,129 Mn in the year, up 25% YoY AUM ($ Mn) 3,789 • Debt assets acquired – Capital employed o $55 Mn in the quarter 539 ($ Mn) o $1,582 Mn
Slide 30: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 3,789 4,450 3,789 4,450 Capital Employed 539 564 539 564 Wholesale assets 459 471 459 471 Retail assets 80 92 80 92 Equity 378 335 378 335 Gross Revenue 40
Slide 31: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) 418 • Partnership with Central Bank of India, IDFC First Bank and Standard Chartered Bank continues to deepen AUM ($ Mn) 830 • Disbursed – o $50 Mn in the quarter o $126 Mn in the year; 80% under co-le
Slide 32: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 830 941 830 941 Gross Loan Book 247 531 247 531 Gross Revenue 46 48 166 201 Net Revenue 19 16 57 72 Opex 10 7 35 37 Credit Cost 2 4 (2) 14 Profit After Tax 5 4 18 17 GNPA
Slide 33: Wholesale reduction on track
NBFC Wholesale reduction on track ECLF wholesale loan assets ($ Mn) 60% 1,244 498 180 Mar 22 Mar 24 Mar 26E Expect momentum to continue with planned reduction 33
Slide 34: Housing Finance: Business performance snapshot
Housing Finance Housing Finance: Business performance snapshot Key Metrics for the quarter Business Update • Partnership with State Bank of India continues to deepen Equity ($ Mn) 98 with ongoing disbursals • Disbursed – AUM ($ Mn) 475 o $66 Mn in the quarter o $159 Mn in the year; 32% under co-lend
Slide 35: Housing Finance: Financial performance snapshot
Housing Finance Housing Finance: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 AUM 475 494 475 494 Gross Loan Book 372 368 372 368 Gross Revenue 15 14 56 53 Net Revenue 6 4 20 18 Opex 4 4 16 15 Credit Cost 0 (0) 0 0 Profit After Tax
Slide 36: General Insurance: Business performance snapshot
General Insurance General Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Fastest growing player with gross direct premium income Equity ($ Mn) 30 (GDPI) growth of 56% YoY for the year • Gross written premium (GWP) – o $31 Mn in the quarter, up 107% YoY GWP ($
Slide 37: General Insurance: Financial performance snapshot
General Insurance General Insurance: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 Gross Written Premium 31 15 102 66 Net Premium Income 14 10 48 37 Investment Income & Other 8 3 24 10 Income Total Income 22 13 72 47 Policy benefits
Slide 38: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Gross premium – Equity ($ Mn) 86 o $97 Mn in the quarter, up 19% YoY o $231 Mn in the year, up 15% YoY Individual APE ($ Mn) 27 • AUM at $958 Mn, up 20% YoY #Policies Issued 23,258 • Embedded V
Slide 39: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot $ Mn Quarter ended Quarter ended Year ended Year ended Mar 24 Mar 23 Mar 24 Mar 23 Gross Premium 97 81 231 201 Net Premium Income 95 80 226 197 Investment Income & Other 29 7 127 43 Income Total Income 124 87 354 240 Policy benefits & ins
Slide 40: Governance & Corporate Responsibility
Governance & Corporate Responsibility
Slide 41: Board with 3 Independent Directors
6 Member Board with 3 Independent Directors Mr. Ashok Kini Independent Director • Former Managing Director (National Banking Group) State Bank of India • Served as an advisor to the Thorat Committee on Financial Inclusion at RBI • 35 years of banking experience Dr. Ashima Goyal Independent Director
Slide 42: Significant institutional ownership
Significant institutional ownership Shareholding Pattern as on Mar 31, 2024 Key Shareholders Percent 1 TIAA CREF Funds 7.2% Employee Trust 2 Pabrai Investment Funds 5.9% DIIs, Non 4.8% Promoter Group 3 LIC 2.6% Institutions & Others 4 Vanguard Group 2.4% 32.8% 30.1% 5 Miri Capital Management 2.1% 6
Slide 43: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… $158 Mn mobilized through Partnered with over 278 Assisted over 60% of EdelGive’s Ensured long term commitments high caliber NGOs NGO partners to grow at a CAGR association with average ran
Slide 44: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 85 Districts Sustainable Women across 13 States Quality Education Livelihoods Empowerment 20 lakh children impacted 2.48 lakh Individuals trained 2.44 lakh women supported 31,000 schools reached 1,832 watershe
Slide 45: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 45
Slide 46: Safe Harbour
Safe Harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed
Slide 47: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, investment in CCD by CDPQ of $20 Mn, Ex-Insurance PAT is post MI Slide 4,7,8,9: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,19: Debt includes accrued interest, liabilities on market linked debentures and excludes CBLO, CDPQ CCD and secur
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