Motilal Oswal Financial Services Limited · NSE:MOTILALOFS

Motilal Oswal Financial Services — Q3 FY2019 Earnings Presentation

66 slides from Motilal Oswal Financial Services's earnings presentation, Jan 16, 2019

  1. Slide 1: Cover letter to stock exchanges

    Motilal Oswal Financial Services limited CIN : L67190MH2005PLC153397 Regd. Office: Motilal Oswal Tower, Rahimtullah Sayani Road, Opp. Parel ST Depot, Prabhadevi, Mumbai -400025. Board: +91 22 3980 4200 I 7193 4200 Fax: +91 22 3846 2365 January 16, 2019 BSELimited National Stock Exchange of India Lim

  2. Slide 2: Earnings Presentation Q3FY19 & 9MFY19

    Motilal Oswal Financial Services Ltd Earnings Presentation | Q3FY19 & 9MFY19 Businesses building scale Annuity revenue driving visibility All biz offer huge headroom for growth

  3. Slide 3: Key Highlights

    Key Highlights Financials Businesses Interesting Exhibits

  4. Slide 4: Key Highlights

    Key Highlights Financials Businesses Interesting Exhibits

  5. Slide 5: Diversified business model

    #'" EXPe,,,. Diversified business model [�]-M__o _T L_AI__L O_s_w_A_L_ YEARS Asset Management Fund based Capital Markets Housing Finance Business AMC AUM: Rs 374 bn, MD & CEO with career Broking business profits Total quoted equity +7% YoY; EBITDA Risk & Credit background +32% YoY in 9MFY19. investm

  6. Slide 6: Awards and Accolades

    Awards and Accolades M'oTILAL 0SWAL Motilal Oswal RE awarded as Motilal Oswal PWM awarded as Private Equity awarded as Best Portfolio awarded as (Mid-size Fund) Exit Best Real Estate Product Manangement Service Best Boutique Performance of the 2018 at the India Wealth Product 2018 Wealth Manager - I

  7. Slide 7: Financials

    Key Highlights Financials Businesses Interesting Exhibits

  8. Slide 8: Consolidated financials

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Consolidated financials ]J ]_M__O _ T l Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Broking 2,701 3,113 -13% 2,957 -9% 8,580 8,146 5% Investment Banking 50 449 -89% 34 46% 235 904 -74% Asset Management 1,368 1,353 1% 1,543 -

  9. Slide 9: Consolidated financials – PAT Mix after Ind-AS

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Consolidated financials – PAT Mix after Ind-AS ]J ]_M__O _ T l PAT (Rs Mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Broking 339 439 -23% 478 -29% 1,372 1,037 32% Investment Banking -23 170 -113% -16 41% 26 447 -94% Capital Markets 317 609 -4

  10. Slide 10: PAT Reconciliation IGAAP to Ind-AS

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Consolidated financials – PAT Reconciliation IGAAP to Ind-AS ]J ]_M__O _ T l Particulars (Rs mn) Q3FY19 Q3FY18 Q2FY19 9MFY19 9MFY18 Net profit after tax as reported under IGAAP 425 1,578 865 2,449 4,089 Adjustments increasing/(decreasing) net profit after tax

  11. Slide 11: Consolidated balance sheet

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Consolidated balance sheet ]J ]_M__O _ T l Particulars (Rs bn) 9MFY19 9MFY18 Sources of Funds Networth 29.9 28.9 Loan Funds 48.9 58.1 Minority Interest 0.4 0.3 Deferred tax liability -0.1 1.2 Total Liabilities 79.1 88.6 Application of Funds Fixed assets (net

  12. Slide 12: Reconciliation of Net worth - IGAAP and Ind-AS

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Reconciliation of Net worth - IGAAP and Ind-AS ]J ]_M__O _ T l Particulars (Rs mn) Q3FY19 Net worth as per IGAAP 24,528 Adjustments increasing/(decreasing) net profit after tax as reported under IGAAP Gain/ (loss) on fair valuation of investments 6,435 Increa

  13. Slide 13: Financial performance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Financial performance ]J ]_M__O _ T l Annual revenue trend Annual profitability trend 37 28 19 20 25 11 12 10 10 8 1.4 1.7 3.6 5.6 1.5 FY15 FY16 FY17 FY18 9MFY19 FY15 FY16 FY17 FY18 9MFY19 Revenues (Rs bn) PAT (Rs bn) EPS (Rs) Profitability mix Strong return

  14. Slide 14: Businesses building scale

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Businesses building scale ]J ]_M__O _ T l AMC AUM and Net sales growth trend Wealth AUM and Net sales growth trend 374 26.6 355 AUM CAGR: 51% Net Sales CAGR: 34% 21 AUM CAGR: 80% Net Sales CAGR: 78% 17.8 203 14.7 11.1 128 105 61 52 62 39 23 42 64 101 147 164

  15. Slide 15: Financial performance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Financial performance ]J ]_M__O _ T l Broking & Distribution: Margins led by Distribution Asset Management: Strong operating leverage • AMC revenue and profit for 9MFY19 grew by 22% YoY and • B&D revenue and profit for 9MFY19 grew 5% YoY and 32% 45% YoY respe

  16. Slide 16: Businesses

    Key Highlights Financials Businesses Interesting Exhibits

  17. Slide 17: Business overview

    #t��� [� ]-M-=--T- O L-A 1 -- L-0 W- S--, A L YEARS Asset Capital Markets Management  Retail Broking & Distn  Asset Management  Institutional Equity  Private Equity  Investment Banking MOTILAL  Wealth Management Stable share in high 0SWAL yielding cash segment Strong growth in AUM Strong opera

  18. Slide 18: Broking & Distribution – Strong and sustained performance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Broking & Distribution– Strong and sustained performance ]J ]_M__O _ T l Healthy volume Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) growth; stable Total Revenues 2,701 3,113 -13% 2,957 -9% 8,580 8,146 5% share in high-yield

  19. Slide 19: Broking & Distribution

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Broking & Distribution ]J ]_M__O _ T l Retail Broking & Distribution Distribution penetration (% of total client base of 1.1 mn) ● Traction in new client addition driven by Franchisee and retail channel i.e. 11.5% 35,600+ clients in Q3FY19. ● Online penetrati

  20. Slide 20: Broking & Distribution – Strong growth in Volume & Distribution AUM

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Broking & Distribution – Strong growth in Volume & Distribution AUM ]J ]_M__O _ T l DP AUM growth trend Rising Distribution AUM (Rs bn) (Rs bn) 90 695 607 75 75 582 450 44 35 256 24 227 18 15 15 16 7 2 FY15 FY16 FY17 FY18 9MFY18 9MFY19 FY15 FY16 FY17 FY18 9MF

  21. Slide 21: Broking & Distribution – Potential levers

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Broking & Distribution – Potential levers ]J ]_M__O _ T l Corporate profit to GDP trend Market cap to GDP trend (%) Decade average : 4.6% (%) 7.77 103 7.26 95 6.25 6.49 88 85 6.23 82 83 81 80 78 5.43 5.47 71 4.85 4.60 66 69 4.66 64 4.35 52 55 3.80 3.47 3.40 3

  22. Slide 22: Broking & Distribution – Potential levers

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Broking & Distribution – Potential levers ]J ]_M__O _ T l Retail ADTO registered faster growth (%) Higher returns in equity asset class in FY18 (%) 71 (%) 13.3 59 60 11.4 42 7.1 6.7 31 6.0 26 5.3 22 22 18 15 14 15 12 12 10 8 11 7 7 -6 -1.2 Retail ADTO MF AUM

  23. Slide 23: Investment Banking

    #t��� [� ]-----=M=-O-T-L-A 1 -_O_ L _ S _ W L-, A Investment Banking YEARS 9M FY19 Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Total Revenues 50 449 -89% 34 46% 235 904 -74% II: HAPPY FORGINGS LIMITED Operating Costs 78 167 -53% 54 43% 189 276 -32% PE Advisory – Rs

  24. Slide 24: Business overview

    #t��� [� ]-M-=--T- O L-A 1 -- L-0 W- S--, A L YEARS Asset Capital Markets Management  Retail Broking & Distn  Asset Management  Institutional Equity  Investment Banking • MOTILAL  Private Equity  Wealth Management Stable share in high 0SWAL yielding cash segment Strong growth in AUM Strong ope

  25. Slide 25: Asset Management – Strong operating leverage

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Strong operating leverage ]J ]_M__O _ T l AMC profit growth Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) of 45% YoY in AUM (bn) 374 350 7% 364 2% 374 350 7% 9MFY19 Net adds (bn) 8 36 -79% 12 -38% 39 97 -60%

  26. Slide 26: Asset Management

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management ]J ]_M__O _ T l ● Market share in MF Equity Net Sales stood at 2.4% (including balance) in 9MFY19 in a rising pool of equity flows. This is driven by MOAMC’s niche equity focus, process-oriented (QGLP) approach and solid performance track rec

  27. Slide 27: Asset Management – Potential levers to scale business

    � [� Asset Management – Potential levers to scale business YEARS MOTILAL OswAL MOAMC’s has “Zero” share in FII driven domestic equity market which is 1.6x of size of DII. MOAMC AUM breakup and growth trend Market cap ( Rs 144 tn) proportion (Rs bn) Total market 355 374 Cap of 27 24 Institutional ---

  28. Slide 28: Asset Management – Potential levers to scale profitability

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Potential levers to scale profitability ]J ]_M__O _ T l Share of Direct in MF Equity AUM MOMF Sourcing Mix on the basis of AUM 12% 11% 8% 7% 7% 23% 13% 14% 15% 17% 17% 35% 13% 17% 17% 23% 19% 65% 20% 13% 35% 35% 32% 42% 38% 51% 25% 27% 27%

  29. Slide 29: Asset Management – Granularity of MF AUM

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Granularity of MF AUM ]J ]_M__O _ T l MOMF SIP AUM and inflows market share MOMF rising SIP proportion 1.3% 1.3% 1.3% 1.2% 1.2% 1.2% 1.2% 1.0% 1.1% 24.9% 25.0% 24.4% 23.8% 23.1% 23.5% 20.0% 22.9% 22.7% 17.4% 15.5% 13.3% 13.9% 13.0% 12.9% 12

  30. Slide 30: Asset Management – Stickiness of MF flows to continue

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Stickiness of MF flows to continue.. ]J ]_M__O _ T l Rising Industry’s MF Equity AUM Rising share of Direct proportion in Asset management industry 55% 57% 9,661 50% 8,359 47% 44% 5,859 42% 41% 41% 38% 4,060 34% 3,583 18% 15% 16% 16% 1,807

  31. Slide 31: Asset Management – Rising share of Alternatives

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Rising share of Alternatives ]J ]_M__O _ T l Rising share of Alternatives in Industry AUM Rising share of Alternatives in Industry AUM 4% 4% 4% 5% 6% 5% 4% 4% 3% 3% 2% 3% 2% 2% 408 473 739 1,054 1% 1% 0% 0% 0% 1% FY15 FY16 FY17 FY18 FY11 FY

  32. Slide 32: Private Equity – Strong growth in AUM and profitability

    #'" w,.,, Private Equity – Strong growth in AUM and profitability [�]l]_M__O _T l L_A__ L O_S_W_A_L_ ' YEARS Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Total AUM of PE Total Revenues 319 419 -24% 247 29% 749 1,459 -49% business stands at ~ Rs 60 bn , +30% YoY Oper

  33. Slide 33: Private Equity – Exits from funds provide visibility

    Private Equity – Exits from 7 funds provides strong visibility over [� �� MOTILAL OSWAL next decade YEARS Launch period of PE Funds QGLP investments delivering higher IRR 61% 500 480 450 400 400 400 400 IREF IV 37% 33% Rs 15 29% 30% IBEF III 26% bn 200 Rs 23 IREF III bn 13% IREF II (Rs 10.3 12% IBEF

  34. Slide 34: Wealth Management – Robust Performance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V ]J ]_M__O _ T l Wealth Management – Robust Performance Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Robust Net Sales AUM (bn) 164 153 7% 155 6% 164 153 7% at ~Rs 21 bn Net adds (bn) 5 10 -51% 6 -18% 21 23 -8% Total Revenues 2

  35. Slide 35: Wealth Management – Strong business performance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V ]J ]_M__O _ T l Wealth Management – Strong business performance Wealth AUM growth trend Wealth net sales trajectory (Rs bn) (Rs bn) 26.6 135 118 23.1 21.2 106 17.8 77 78 14.7 11.1 49 42 64 101 147 153 164 FY15 FY16 FY17 FY18 9MFY18 9MFY19 FY15 FY16 FY17 FY18

  36. Slide 36: Business overview

    #t��� [� ]-M-=--T- O L-A 1 -- L-0 W- S--, A L YEARS Asset Capital Markets Management  Retail Broking & Distn  Asset Management  Institutional Equity  Investment Banking • MOTILAL  Private Equity  Wealth Management Stable share in high 0SWAL yielding cash segment Strong growth in AUM Strong ope

  37. Slide 37: Aspire Home Finance (AHFCL)

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance (AHFCL) ]J ]_M__O _ T l MD & CEO with Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ% 9MFY19 9MFY18 YoY% career Risk & Credit Net Interest Income (NII) 523 577 -9% 700 -25% 1,797 1,819 -1% background on Other Operating Income 33 8 28

  38. Slide 38: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l PAT reconciliation from IGAAP to Ind-AS Net worth reconciliation from IGAAP to Ind-AS Particulars (Rs mn) 9MFY19 Particulars (Rs mn) 9MFY19 Net profit after tax as per Previous GAAP -1,433 Networth as per IGAAP 8,566 Adjust

  39. Slide 39: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l ● Disbursements in 9MFY19 were Rs 2.1 bn. However, sanction pipeline is Loan book and disbursement trend (Rs bn) building up which will eventually result in disbursement pick up. Further, adequate sales force is in place to

  40. Slide 40: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l ● Average ticket size is Rs 0.85 mn, with loans extended to more than Low gearing ~53,000 families, as AHFCL is focused on the affordable housing 6.4 segment. Average LTV of the book is <60%; overall FOIR remains at a 5.1 5

  41. Slide 41: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l Higher investment in manpower Diversified liability mix trend 1297 0% 0% 0.6% 3% 1213 0% 1174 0% 1051 27% 53% 57% 54% 53% 55% 496 73% 47% 43% 46% 46% 42% 155 14 51 120 120 117 120 FY15 FY16 FY17 FY18 9MFY18 9MFY19 FY15 FY16

  42. Slide 42: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l Aspire’s State wise loan book mix Aspire’s GNPA and NNPA trend 2% 1% 8.68% 3% 46% 3% 1% 9% 6.8% 7.0% 6.97% 5.6% 5.6% 13% 4.6% 4.5% 40% 67% 3.6% 35% 3.3% 2.8% 36% 2.4% Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Maharashtra Gu

  43. Slide 43: Aspire Home Finance

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Aspire Home Finance ]J ]_M__O _ T l Industry’s delinquency trend : 0+ dpd Industry’s delinquency trend : 30+ dpd 13.5% 13.9% 13.7% 20.1% 19.5% 19.9% 12.4% 12.1% 12.3% 18.1% 17.6% 17.3% 13.8% 9.2% 11.6% 7.7% 7.4% 7.6% 7.3% 10.5% 10.7% 10.7% 10.6% 7.1% 7.0% 6.6

  44. Slide 44: Aspire Home Finance – Strengthened credit, collection and processes

    Aspire Home Finance – Strengthened credit, collection and processes [��-- �] YEARS '_MOTILAL ::::'.:=�Q@S W � ��A L Credit Collection Process Separated credit reporting from In-house Set up in-house collection and Rolled out Pre Sales app, Sales Cluster Digital branch; cluster level credit layer Col

  45. Slide 45: Business overview

    #t��� [� ]-M-=--T- O L-A 1 -- L-0 W- S--, A L YEARS Asset Capital Markets Management  Retail Broking & Distn  Asset Management  Institutional Equity  Investment Banking • MOTILAL  Private Equity  Wealth Management Stable share in high 0SWAL yielding cash segment Strong growth in AUM Strong ope

  46. Slide 46: Fund Based business

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Fund Based business ]J ]_M__O _ T l Particulars (Rs mn) Q3FY19 Q3FY18 YoY (%) Q2FY19 QoQ (%) 9MFY19 9MFY18 YoY (%) Total quoted equity investment including MTM gains was Rs Total Revenues 565 1,419 -60% -578 - 56 3,331 -98% 13.6 bn as of Q3FY19. PAT as per In

  47. Slide 47: Fund Based business – Skin in the game

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Fund Based business – Skin in the game ]J ]_M__O _ T l Skin in the game in AMC Skin in the game in PE 3.7 25 373 60 AMC AUM (Rs bn) Sponsor & Promoter AUM in AMC (Rs bn) PE AUM (Rs bn) Sponsor Commitment in PE (Rs bn) Unrealised gain from quoted equity invest

  48. Slide 48: Management team

    #�� EXp(.p;, [�]f]'�M=--0--T L_A I _L_O__SW--L-. A Management team YEARS Aashish Somaiyaa, CEO – Asset Management Motilal Oswal, Chairman and MD Mr Somaiyaa has done his MMS-Finance from NMIMS. He has varied A CA by qualification, Mr. Oswal started MOFSL along with Co-promoter, experience . of more

  49. Slide 49: Independent Directors

    #'''1 ElP4i;. [�]J]'_M_o_T__ I _ L L_O A __W s _......, A L Independent Directors YEARS Praveen Tripathi, Independent Director (MOFSL) Ashok Jain Independent Director (MOAMC) Mr Tripathi has done his PGDM from IIM, Ahmedabad and B. Tech Mr .Jain is the Whole-time Director and CFO of Gujarat Borosil.

  50. Slide 50: MOFSL Journey

    #t��� [�]-----=M=O-T-- 1 A_L_O L �W S �L--, A MOFSL Journey YEARS - Reach expands to 2017 - Asset - Forbes super 2003 2010 over 100 business Management 50 companies locations and launches its - MOAMC customer base maiden mutual ranked among crosses 10,000 fund offering Asia's Top 100 - FII clients c

  51. Slide 51: Interesting Exhibits

    Key Highlights Financials Businesses Interesting Exhibits

  52. Slide 52: Capital Market – Rising market share of top brokers

    Capital Market – Rising market share of top brokers in an #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V ]J ]_M__O _ T l earnings upcycle Market ADTO is on a high YoY in 9MFY19 Market ADTO break up (Rs bn) 9764 2% 1% 2% 2% 2% 1% 4% 5% 4% 3% 3% 3% 8,510 12% 12% 9% 15% 17% 15% 6,791 6387 5,663 5,299 4,068 3

  53. Slide 53: DIIs clock healthy inflows; Higher-value IPOs pick up

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V DIIs clock healthy inflows; Higher-value IPOs pick up ]J ]_M__O _ T l FII & DII net inflows ECM markets (Rs bn) 1,899 (Rs bn) 1,113 1,145 895 845 1,424 804 561 308 260 116 643 579 536 337 322 FY15 FY16 FY17 FY18 9MFY18 9MFY19 157 113 97 74 87 116 (220) (142)

  54. Slide 54: Asset Management – Strong AUM growth story

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Strong AUM growth story ]J ]_M__O _ T l MF AUM growth provides optimism ETF AUM has grown ~10x in past 3 years 1,119 (Rs bn) (Rs bn) 22,859 21,360 777 16,500 12,328 10,828 309 233 266 224 231 147 78 8 FY15 FY16 FY17 FY18 9MFY19 FY15 FY16 FY

  55. Slide 55: Asset Management – Stickiness of Equity asset class

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Stickiness of Equity asset class ]J ]_M__O _ T l Equity-oriented funds lead the charge in net inflows B30 cities allocation towards equity asset class rises (Rs bn) (Rs bn) 768 988 958 5,597 516 4,610 1,173 3,141 171 2,608 244 7,852 159 933

  56. Slide 56: Stickiness of Individual investors

    #�'!�£.p� � L_A_L_0-,- S A_L_ ¥ Asset Management – Stickiness of Individual (Retail + HNI) investors [ ]' _M__ O _ T I YEARS Mutual fund assets of individual investors on the rise Individual investors’ assets claim a bigger share of the AUM pie (Rs bn) 12,907 11,665 1.0% 0.4% 10,434 8,527 44% 7924 5

  57. Slide 57: Asset Management – Rising financialization of savings

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Rising financialization of savings ]J ]_M__O _ T l Shift of financial savings from ULIP to Equity MF Strong traction in Equity MF inflows (growth YoY %) 120 (%) 144% 100 80 60 40 25% 20% 26% 17% 15% 16% 15% 22% 20 15% 12% 10% 7% 12% 7% 10%

  58. Slide 58: Current Equity MF uptrend is just like FY02-08 cycle

    Asset Management – #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V ]J ]_M__O _ T l Current Equity MF uptrend is just like FY02-08 cycle Significant inflows in Eq MF AUM in last up-cycle (FY02-08 ); Market performance drives MF net flows, a repeat of the last same traction has been witnessed from FY14 onwar

  59. Slide 59: Financialisation of savings wave

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Asset Management – Financialisation of savings wave... ]J ]_M__O _ T l Higher financial savings signifying opportunity for MFs Low penetration of MFs provides headroom for growth (% of household savings) MF penetration (AUM/GDP%); Global AUM ($Tn) US$ 52% USA

  60. Slide 60: Wealth Management – HNI Wealth picking up

    Wealth Management – #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V ]J ]_M__O _ T l HNI Wealth picking up; HNI assets in equity MFs growing Individual Wealth distribution shows India has a higher share of India is Home to ~0.2 mn HNIs, out of which ~0.15 mn are UHNIs; Alternates, but lower share of Equity,

  61. Slide 61: Housing Finance holds ample potential

    #'" w,.,, Housing Finance holds ample potential; moving from Banks to HFCs [�]l]_M__O _T l L_A__ L O_S_W_A_L_ ' YEARS India’s housing credit growing significantly HFCs gaining share from banks (Rs tn) Housing Credit CAGR: 18% Banks Housing Credit CAGR: 16% 14.4 HFCs Housing Credit CAGR: 22% 13.7 69%

  62. Slide 62: Affordable Housing Industry

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Affordable Housing Industry ]J ]_M__O _ T l Housing market Split in India – Dominated by Affordable Housing Affordable Housing (up to Rs 25 lacs) lending pie 15% 41.5% 48.0% 50% 35% 0.3% 10.1% Affordable Housing (upto Rs 25 lacs) Regualar Housing (Rs 25 lacs-

  63. Slide 63: Affordable Housing Industry

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Affordable Housing Industry ]J ]_M__O _ T l Ticket size wise break-up of home loan book of Affordable All HFCs Ticket size wise break-up of home loan book of Affordable New HFCs 33% 36% 30% 34% 29% 33% 26% 21% 24% 23% 20% 20% 20% 18% 15%14%15% 15% 15% 15% 13%

  64. Slide 64: Affordable Housing Industry

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Affordable Housing Industry ]J ]_M__O _ T l Trends in Home loan CAGR (FY15-18) for various lender groups Industry’s loan book proportion trend 64% 71% 69% 69% 67% 29% 19% 19% 14% 16% 17% 17% 17% 14% 14% 13% 11% 1% 0% 1% 1% Large HFC Small HFC Affordable New A

  65. Slide 65: Safe Harbour

    #�'.!.�E.f� [�YEARS L_A__ L O_S_\-A_L_ V Safe Harbour ]J ]_M__O _ T l This earning presentation may contain certain words or phrases that are forward - looking statements. These forward-looking statements are tentative, based on current analysis and anticipation of the management of MOFSL. Actual re

  66. Slide 66: For any query, please contact

    #�'� U..::4� [ I] MOTILAL OSWAL YEARS For any query, please contact : Shalibhadra Shah Chief Financial Officer 91-22-71934917 / 9819060032 shalibhadrashah@motilaloswal.com Rakesh Shinde VP–Investor Relations 91-22-71985510 / 9920309311 rakesh.shinde@motilaloswal.com

Motilal Oswal Financial Services — Q3 FY2019 Earnings Presentation on 6ix