360 One Wam Limited · NSE:360ONE
360 One Wam — IIFL Wealth and Asset Management — Q4 FY22 Earnings Presentation
37 slides from 360 One Wam's earnings presentation, 2022
Slide 1: IIFL Wealth and Asset Management Investor Presentation FY22 Performance Update
IIFL WEALTH AND ASSET MANAGEMENT Investor Presentation – Quarterly & Full year FY22 Performance Update Strictly Private and Confidential - Internal Circulation Only
Slide 2: Consolidated Business Summary
CONSOLIDATED BUSINESS SUMMARY 2
Slide 3: Business Snapshot
BUSINESS SNAPSHOT Wealth Management Asset Management INR 206k cr / $27bn* AUM INR 55k cr / $7bn* AUM INR ~19.5K Net New Flows in FY22 INR ~12k Net New Flows in FY22 INR 1,038 cr / $134* mn INR 360 cr / $46 mn* Revenue in FY 22 Revenue in FY 22 6,800+ Relevant Families ~165k Folios Distribution, Brok
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Total AUM2 is up 26.4% for FY22 to Rs 2,61,745 Crs AUM • Continued focus on ARR assets –increase of 41.6% YoY, and 3.9% QoQ to Rs 1,44,432 Crs • Net flows2 are Rs 31,422 Crs for FY22 and Rs 7,036 Crs for Q4 FY22 • Total Revenues are up 45.8% for FY22 at 1,536 Crs, and up 7
Slide 5: Consolidated Business Summary
CONSOLIDATED BUSINESS SUMMARY INR Cr Q3 FY 22 Q4 FY 22 QoQ Q4 FY 21 YoY FY 21 FY 22 % Closing AUM Annual Recurring Revenue Assets 1,38,946 1,44,432 3.9% 1,01,969 41.7% 1,01,969 1,44,432 41.6% Transactional / Brkg Revenue Assets 1,23,834 1,17,313 -5.3% 1,05,074 11.7% 1,05,074 1,17,313 11.6% Total AUM
Slide 6: Key Metrics Summary
KEY METRICS SUMMARY Total Revenues (Rs. Cr.) & Retentions (%) QoQ Cost Mix (Rs. Cr.) Other Income 53.0% 50.4% 48.0% 52.9% 52.3% Transactional / Brokerage Revenue Annual Recurring Revenue Cost to Income Ratio Admin and Other Expenses Retention on Total Revenue 0.70% 500 0.65% 449 Variable Employee Co
Slide 7: Segmental Business Summary
SEGMENTAL BUSINESS SUMMARY 7
Slide 8: Segmental Business Snapshot - Quarterly
SEGMENTAL BUSINESS SNAPSHOT - QUARTERLY REVENUE FROM AUM NET FLOWS RETENTION OPERATIONS Particulars Q3 FY 22 Q4 FY 22 Q3 FY 22Q4 FY 22 FY 22 Q3 FY 22Q4 FY 22 FY 22 Q3 FY 22 Q4 FY 22 FY 22 Wealth Management 2,07,032 2,06,170 2,829 5,263 19,464 278 320 1,038 0.54% 0.63% 0.53% Asset Management 55,748 5
Slide 9: Segmental Business Snapshot - Yearly
SEGMENTAL BUSINESS SNAPSHOT - YEARLY REVENUE FROM AUM NET FLOWS RETENTION OPERATIONS Particulars FY 21 FY 22 % FY 21 FY 22 % FY 21 FY 22 % FY 21 FY 22 +/- Wealth Management 1,69,672 2,06,170 21.5% 15,138 19,464 28.6% 718 1,038 44.6% 0.46% 0.53% 0.07% Asset Management 37,372 55,574 48.7% 8,957 11,957
Slide 10: Segmental Snapshot - Wealth Management (Products)
SEGMENTAL SNAPSHOT - WEALTH MANAGEMENT (PRODUCTS) AUM NET FLOWS REVENUE FROM OPERATIONS RETENTION WEALTH MANAGEMENT Q3 FY 22 Q4 FY 22 Q3 FY 22 Q4 FY 22 FY 22 Q3 FY 22 Q4 FY 22 FY 22 Q3 FY 22 Q4 FY 22 FY 22 TOTAL 2,07,032 2,06,170 2,829 5,263 19,464 278 320 1,038 0.54% 0.63% 0.53% IIFL One 31,282 32,
Slide 11: Segmental Snapshot - Wealth Management (Asset Class)
SEGMENTAL SNAPSHOT - WEALTH MANAGEMENT (ASSET CLASS) AUM NET FLOWS WEALTH MANAGEMENT Q3 FY 22 Q4 FY 22 Q3 FY 22 Q4 FY 22 TOTAL1 2,02,881 2,01,852 2,236 5,095 Equity 1,10,343 1,09,864 4,560 5,169 Debt 92,538 91,989 -2,324 -74 - Long Term 63,067 64,012 564 579 - Short Term 13,159 12,372 -362 -731 - Li
Slide 12: Segmental Snapshot - Asset Management
SEGMENTAL SNAPSHOT – ASSET MANAGEMENT AUM NET FLOWS REVENUE FROM OPERATIONS RETENTION ASSET MANAGEMENT Q3 FY 22 Q4 FY 22 Q3 FY 22 Q4 FY 22 FY 22 Q3 FY 22 Q4 FY 22 FY 22 Q3 FY 22 Q4 FY 22 FY 22 TOTAL 55,748 55,574 3,562 1,774 11,957 100 103 360 0.76% 0.75% 0.73% Discretionary Portfolio Manager 18,786
Slide 13: Segmental Snapshot - Asset Management (Strategy)
SEGMENTAL SNAPSHOT - ASSET MANAGEMENT (STRATEGY) AUM NET FLOWS ASSET MANAGEMENT Q3 FY 22 Q4 FY 22 Q3 FY 22 Q4 FY 22 TOTAL 55,748 55,574 3,562 1,774 Listed Equity 25,234 24,924 2,230 466 Private Equity 22,307 22,057 847 834 Credit Strategies 3,092 3,614 827 514 Real Estate Strategies 3,536 3,425 -352
Slide 14: Annual Strategy Update
ANNUAL STRATEGY UPDATE FL WEALTH & ASSET MANAGEMENT
Slide 15: Winning Strategies Delivering to Clients & All Stakeholders
WINNING STRATEGIES… DELIVERING TO CLIENTS & ALL STAKEHOLDERS… GROWTH RESILIENCE AGILITY • Large market opportunity • Market leadership position • Differentiated proposition • Nascent alternates landscape • Transition to recurring revenues • Best-in-class platform and • Mid-market segment potential •
Slide 16: Annual Strategy Update: Growth
ANNUAL STRATEGY UPDATE GROWTH 16
Slide 17: Macroeconomic Tailwinds in India with Growing Wealth and Financialization of Savings
MACROECONOMIC TAILWINDS IN INDIA WITH GROWING WEALTH AND FINANCIALIZATION OF SAVINGS RISING AFFLUENCE FAVOURABLE DEMOGRAPHICS 12th largest market by HNI population 450mm Working population 13% CAGR in number of millionaires 850mm Population aged <34 yrs (2020-25E) 78% Literacy rate 10% CAGR in wealt
Slide 18: Wealth Management Landscape to Continue Growth at Record Pace
WEALTH MANAGEMENT LANDSCAPE TO CONTINUE GROWTH AT RECORD PACE Stock of wealth will Total Individual … HNI Wealth Savings mix changing Level of assets under GDP growth (INR Tn) grow at a higher wealth to double by expected to grow towards financial professional advice is multiple of GDP FY ‘25 faster
Slide 19: Expansion in Alternate Assets Globally Will Percolate to India
EXPANSION IN ALTERNATE ASSETS GLOBALLY WILL PERCOLATE TO INDIA SIGNIFICANTLY Global AUM split by product ($tn) Global Revenue split by product ($bn) Alternatives Active specialties CAGR 437 CAGR Solutions / LDI / balanced Active Core (2020-25E) (2020-25E) Passive 136 331 46% 16% 8% 8% 103 42% 17% 4%
Slide 20: IIFLWAM Unique Positioning - Aligned with Key Levers for Growth
IIFLWAM UNIQUE POSITIONING – ALIGNED WITH KEY LEVERS FOR GROWTH In-depth • Deep relationships across first generation entrepreneurs, large understanding of Increasing Client size + family run business owners, senior professionals, family offices, diverse needs of Vintage of existing Clients endowmen
Slide 21: Annual Strategy Update: Resilience
ANNUAL STRATEGY UPDATE RESILIENCE 21
Slide 22: Leadership Position - Driving Profitable Growth, at Scale
LEADERSHIP POSITION – DRIVING PROFITABLE GROWTH, AT SCALE Largest independent wealth manager… …as well as one of the largest alternative assets manager Total WM AUM (INR cr) WM Revenue (INR cr) Total AM AUM (INR cr) AM Revenue (INR cr) 2,06,170 55,574 1,038 360 1,34,958 774 21,940 146 FY20 FY22 FY20
Slide 23: Recurring Revenue with Sustained Profitability and High Retentions
RECURRING REVENUE WITH SUSTAINED PROFITABILITY AND HIGH RETENTIONS Successful change in business strategy from FY19 towards recurring revenue model to align client interests Strategy enablers Strong growth in AUM (INR cr) Strong growth in ARR Revenues (INR cr) 8,714 32,724 15 90 IIFL One Pioneer in
Slide 24: Entrepreneurial Culture and Strong Focus on Client Continuity
ENTREPRENEURIAL CULTURE AND STRONG FOCUS ON CLIENT CONTINUITY = ABILITY TO ATTRACT, RETAIN AND GROW TALENT Long-tenured client base… …resulting in robust employee metrics Vintage 0-1 years Team leader split by tenure (FY22) 4% 7% 0–3 Years 1-3 years 10% 12% 42% 3-5 years AUM - Count 3–5 Years 24% 12
Slide 25: Circle of Influence Drives Growth and Superior Economics
“CIRCLE OF INFLUENCE” DRIVES GROWTH AND SUPERIOR ECONOMICS Strong network effects with scale: Ability to attract, retain & reward talent ✓ Established brand of trust Best in class client experience ✓ Enhanced platform proposition New client acquisition via referrals ✓ Superior product innovation Pro
Slide 26: Annual Strategy Update: Agility
ANNUAL STRATEGY UPDATE AGILITY 26
Slide 27: Differentiated Customer Proposition with High Customer Engagement
DIFFERENTIATED CUSTOMER PROPOSITION WITH HIGH CUSTOMER ENGAGEMENT Differentiated propositions for the target customer segment with… CUSTOMER PROFILE CUSTOMER GOAL OUR PROPOSITION • HNI & UHNIs with net worth > INR 25 Cr • Wealth preservation and optimization • Standardized portfolio management appro
Slide 28: Best in Class Wealth Management Platform
BEST IN CLASS WEALTH MANAGEMENT PLATFORM 2% 16% 43% ARR 21% 9% 53% ARR Revenue 23% AUM mix mix (FY22) 25% (FY22) 57% 47% Trail Commission Transactional / IIFL One Earning Assets Lending Assets Brokerage AUM (FY22) INR 32,274 Cr INR 51,815 Cr INR 4,318 Cr INR 117,313 Cr Revenue (FY22) INR 90 Cr INR 2
Slide 29: Full-Service Alternate Asset Management Platform
FULL-SERVICE ALTERNATE ASSET MANAGEMENT PLATFORM 3% 4% 4% 6% 6% 5% Revenue 37% AUM mix 45% mix (FY22) (FY22) 40% 50% Listed equity Private equity Real estate Private credit Long-short AUM (FY22) INR 24,924 cr INR 22,057 cr INR 3,425 cr INR 3,614 cr INR 1,553 cr Revenue (FY22) INR 133 cr INR 179 cr I
Slide 30: Continuous Focus on Product Innovation
CONTINUOUS FOCUS ON PRODUCT INNOVATION • Deep products and research team on Wealth Management – one of the largest in the country • Local expertise due to ear-to-the-ground approach • Pioneering several industry first thematic funds (Pre-IPO Fund, Seed Fund) Differentiated • Entrepreneurial edge, ag
Slide 31: Using Technology to Execute Transformational Changes
USING TECHNOLOGY TO EXECUTE TRANSFORMATIONAL CHANGES TO IMPROVE CLIENT EXPERIENCE AND ENHANCE RM PRODUCTIVITY Digital transformation a key enabler for the wealth management business Client service: Focus on building innovative tech-led solutions for better client experience Relationship managers: In
Slide 32: Other Updates
OTHER UPDATES FL WEALTH & ASSET MANAGEMENT
Slide 33: CSR FY22 | IIFL Wealth Foundation
CSR FY22 | IIFL WEALTH FOUNDATION… DELIVERING EXPONENTIAL IMPACT We re-imagined traditional grant-giving and evolved a more catalytic approach with CSR funds deployed to generate a higher social return by unlocking further capital, recycling funds, and a strong focus on outcomes We vetted and co-cur
Slide 34: Marquee Institutional Shareholding and Experienced Board
MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD Shareholding Split1 Details of Key Shareholders Promoters2 23% Promoters Public 23% Public Shareholding 15% Institutions Institutional Shareholding3 62% 62% 15% General Atlantic 21% Fairfax 14% Others 28% Board of Directors Name & Designation
Slide 35: Link to Download Data Book
LINK TO DOWNLOAD DATA BOOK Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website . The Link for the data book is hosted below. Contents of the Data Book: 1. Re-classified Result Table 2. Consolidated Data 3. Segmental – We
Slide 36: Disclaimer
DISCLAIMER This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasin
Slide 37: Thank You
THANK YOU For Any further information, please reach out to ir@iiflw.com
IIFL Wealth and Asset Management — Q4 FY22 Earnings Presentation on 6ix