360 One Wam Limited · NSE:360ONE
360 One Wam — IIFL Wealth & Asset Management — Q2 FY21 Earnings Presentation
35 slides from 360 One Wam's earnings presentation, 2020
Slide 1: Quarterly Performance Review Q2 FY 21
IIFL WEALTH & ASSET MANAGEMENT Quarterly Performance Review Q2 FY 21 #1 Wealth Manager in India #1 Manager of Alternates in India Strictly Private and Confidential - Internal Circulation Only
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS NFL WEALTH & ASSET MANAGEMENT
Slide 3: Business Summary
BUSINESS SUMMARY INR Cr FY 21 Q2 FY 21 Q1 FY 20 Q4 FY 20 Q3 FY 20 Q2 QoQ YoY Closing AUM Annual Recurring Revenue Assets 79,142 73,155 62,595 70,434 64,016 8% 24% Transactional / Brokerage Revenue Assets 107,955 103,568 94,302 101,703 99,276 % 9% Total AUM 187,097 176,723 156,897 172,137 163,292 6%
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Overall AUM has grown by 6% QoQ to 167,090 Crs • Continued focus on ARR assets – increase of 8% QoQ to Rs 79,142 Crs AUM & Net Flows • IIFL One Assets increased 11% QoQ to Rs 22,259 Crs • Net Flows for the Quarter stand at Rs 6,442 Crs • Revenue from Operations increased 7
Slide 5: Revenue, Cost and Profitability
REVENUE, COST AND PROFITABILITY Revenues from Operations (Rs. Cr.) & Yields (%) QoQ Cost Mix (Rs. Cr.) Transactional / Brokerage Revenue 58.4% 61.4% 59.1% 54.3% 54.3% Annual Recurring Revenue Cost to Income Ratio Admin and Other Expenses 35 0 Retention on Revenue from Operations 0. 80 % 0.65% 0.60%
Slide 6: IIFL WAM: Engages with Clients in Multiple Capacities Under One Platform
IIFL WAM: ENGAGES WITH CLIENTS IN MULTIPLE CAPACITIES UNDER ONE PLATFORM CONSOLIDATED AUM INCL CUSTODY ASSETS RS. 202,377 CR. Portfolio Manager Broker / Arranger Alternative Investments Lender Manager Mutual Fund Manager Depository Participant Registered Investment Distributor Advisor 6
Slide 7: Key Business Highlights: AUM, Revenue, Retention
KEY BUSINESS HIGHLIGHTS: AUM, REVENUE, RETENTION AUM AVERAGE AUM REVENUE RETENTION Particulars Q4 FY 20 Q1 FY 21 Q2 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 As a Portfolio Manager 16,298 18,952 21,224 14,574 16,929 15,751 15 19 35 0.42% 0.46% 0.44% As a
Slide 8: Key Business Highlights – AUM and Net Flow
KEY BUSINESS HIGHLIGHTS – AUM AND NET FLOW Assets Under Management Annual Recurring Revenue Assets (Rs. Cr.) As a Portfolio Manager As a Mutual Fund Manager As a Portfolio Manager As a Mutual Fund Manager As a Alternate Investment Manager As a Registered Investment Advisor As a Alternate Investment
Slide 9: AUM Details: As a Portfolio / Alternates / MF Manager
AUM DETAILS : AS A PORTFOLIO / ALTERNATES /MF MANAGER AUM AVERAGE AUM REVENUE RETENTION PARTICULARS Q4 FY 20 Q1 FY 21 Q2 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 As a Portfolio Manager 16,298 18,952 21,224 14,574 16,929 15,751 15 19 35 0.42% 0.46% 0.44%
Slide 10: AUM Details: As a Distributor/Broker/Lender
AUM DETAILS : AS A DISTRIBUTOR/BROKER/LENDER AUM AVERAGE AUM REVENUE RETENTION Particulars Q4 FY 20 Q1 FY 21 Q2 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 Q1 FY 21 Q2 FY 21 H1 FY 21 As a Distributor 61,090 70,227 73,992 66,421 72,941 69,681 28 31 59 0.17% 0.17% 0.17% ARR - Third Par
Slide 11: Strong Momentum Towards ARR
STRONG MOMENTUM TOWARDS ARR IIFL One Assets Discretionary Non-Discretionary Annual Recurring Revenue Assets Excluding IIFL One Transactional / Brokerage Revenue Assets Advisory Basket AUM ARR as a % of Total Assets Retention1 20% 30% 37% 40% 41% 42% 22,259 98,392 130,943 155,490 156,897 176,723 187,
Slide 12: Capital Allocation
CAPITAL ALLOCATION Net Worth 2,850 Cr. Goodwill + Select Fixed As Distributor As a Lender Intangibles Assets & Broker 1100 Cr. 530 Cr. 270 Cr. 300 Cr. As a Alternate As a Portfolio As a Mutual Investment Manager Fund Manager Manager 100 Cr. 250 Cr. 300 Cr. Key focus areas for Capital Allocation Opti
Slide 13: Low Client Attrition and High Productivity
LOW CLIENT ATTRITION AND HIGH PRODUCTIVITY No. of relevant families Client Attrition <2.5 % per annum1 18.9% 16.9% 17.7% 9.0% 8.4% 1.4% 0.87% 0.40% 0.47% 0.52% Total Existing Relevant Families % of AUM coming from new family 6,563 No of Clients Lost AUM lost as a % of Total AUM2 4 Total New Relevant
Slide 14: High Employee Retention
HIGH EMPLOYEE RETENTION RM Buildup 60% of Team Leaders have more than 5 year vintage in IIFL Wealth1 Wealth - Teamleaders Wealth - RM 0-1 Years 1-3 Years 350 3 299 297 5 268 300 250 250 Weighted 12 200 183 average tenure 3-5 Years 236 231 7+ Years 35 of all Team 189 204 150 Leaders is 129 7.2 yrs 10
Slide 15: Medium Term Targets
MEDIUM TERM TARGETS Metrics Target Target H1 FY21 FY20 FY 2022 FY 2021 Net Total AUM 200,000 180,000 167,0901 138,792 Average AUM 190,000 165,000 160,023 137,696 Retention on Revenue 53 bps 53 bps 54 bps 67 bps from Operations Cost to Income 52% 55% 54% 66% RoE (Ex Goodwill and 16% 14% 13% 8% Intang
Slide 16: Marquee Institutional Shareholding and Experienced Board
MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD Shareholding Split1 Details of Key Shareholders Promoters Promoters2 23.0% Public 23% Institutions Public Shareholding 16.7% General Atlantic 21.3% 60% 17% Fairfax 18.5% Other Institutions 20.5% Board of Directors Name & Designation Previous E
Slide 17: Experienced Management Team with Deep Domain Expertise
EXPERIENCED MANAGEMENT TEAM WITH DEEP DOMAIN EXPERTISE Karan Bhagat 20+ years of experience WEALTH AMC CORPORATE FUNCTIONS Yatin Shah Anup Maheshwari Anshuman Maheshwary COO 16+ years of experience 24+ years of experience 20+ years of experience Anirudha Taparia Prashasta Seth Pavan Manghnani Unlist
Slide 18: Annexures
ANNEXURES NFL WEALTH & ASSET MANAGEMENT
Slide 19: Detailed Financial Snapshot
DETAILED FINANCIAL SNAPSHOT 19
Slide 20: Consolidated Financials – Re-classified Result Table
CONSOLIDATED FINANCIALS – RE CLASSIFIED RESULT TABLE Quarter Ended Half -Year Ended Particulars Sep 30, 2020 Jun 30, 2020 Sep 30, 2019 Sep 30, 2020 Sep 30 , 2019 Fee based Income (A) 162 146 150 308 326 1. (iii) Fees and commission Income 161 137 124 298 301 1.(iv) Net gain / loss on fair value chan
Slide 21: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Rs in Crs. As at As at As at As at ASSETS LIABILITIES AND EQUITY 30-Sep-20 30-Jun-20 30-Sep-20 30-Jun-20 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 478 868 (a) Derivative financial instruments 252 280 (b) Bank Balance other than (a) above 406
Slide 22: Breakdown of Investments
BREAKDOWN OF INVESTMENTS Sep 30, Jun 30, Sep 30, Jun 30, 2020 2020 2020 2020 Investments 5,965 6,509 Borrowings 7,751 8,203 Derivative financial instruments [1c] 70 74 Derivative Financial Instruments [1a] 252 280 Investments [1f] 5,895 6,435 Debt Securities [1c] 4,032 4,462 Borrowings (Other than D
Slide 23: Break Down of Investments
BREAK DOWN OF INVESTMENTS Value as on 30th Value as on 30th % of Total Investment Type Category Description Sep 20 (in Cr) Jun 20 (in Cr) Investment Govt Securities Govt Securities 3,274 3,326 55% Structured Perpetuals Various 745 329 12% Investments Debentures Various 121 670 2% Structured 4,141 4,
Slide 24: Breakdown of Net Fund Based Incomes (QoQ)
BREAKDOWN OF NET FUND BASED INCOMES (QoQ) Rs in Crs. Average Q2 FY 21 Income Expense Net Capital Remarks Deployed 210 -125 85 2,452 Average Capital Allocation Excluding Goodwill & Total Fund Based Intangibles NIM on Loans 92 -41 50 1,268 NIM earned on Average Loans outstanding for the period These a
Slide 25: Segment Deep Dive
SEGMENT DEEP DIVE NFL WEALTH & ASSET MANAGEMENT
Slide 26: Business Segment View
BUSINESS SEGMENT VIEW Assets Under Management - YoY (Rs. Cr.) Net Flows including Custody1 Wealth Management Asset Management 10,073 AMC Assets Distributed by Wealth 202,377 Custody Assets 167,746 35,287 6,073 369 202,377 160,034 185,862 31,145 26,695 160,034 21,243 130,981 18,564 20,773 21,940 94,9
Slide 27: Consolidated Metrics YoY
CONSOLIDATED METRICS YOY Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Annual Recurring Revenue Retention on Revenue from Operations Transactional / Brokerage Revenue Assets Transactional / Brokerage Revenue Less:
Slide 28: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Transactional / Brokerage Revenue Transactional / Brokerage Revenue Assets 167,090 Annual Recurring Revenue Less: Double counted assets 1,50,76
Slide 29: Consolidated Metrics YoY
CONSOLIDATED METRICS YoY Annual Recurring Revenue Assets (Rs. Cr.)1,2 Annual Recurring Revenues (Rs. Cr.) IIFL One Assets IIFL One Revenue4 Funds Managed by IIFL AMC Management Fees on Funds Managed by IIFL AMC Trail Commissions on Third Party Managed Funds 535 79,142 Trail Commission on Third Part
Slide 30: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Annual Recurring Revenue Assets (Rs. Cr.)1,2 Annual Recurring Revenues (Rs. Cr.) IIFL One Assets Funds Managed by IIFL AMC IIFL One Revenue Management Fees on Funds Managed by IIFL AMC Trail Commission on Third Party Managed Funds Trail Commission on Third Party Managed Fund
Slide 31: Wealth Management
WEALTH MANAGEMENT AUM by Products YoY (Rs. Cr.) AUM by Products QoQ (Rs. Cr.) IIFL One Assets Managed Accounts Distributed Ret. on Rev from Operations IIFL One Assets Managed Accounts Distributed Ret. on Rev from Operations Management Fees on Funds Managed by IIFL AMC Brokerage Income Management Fee
Slide 32: Break Down of Loan Book
BREAK DOWN OF LOAN BOOK Loan Book Loan Spread 6,715 2.4% 1.9% 2.1% 4,798 1.4% 3,536 2,836 FY18 FY19 FY 20 FY 21 H1 FY18 FY19 FY20 FY21 H1 • INR 7,000 cr+ IPOs funded during the quarter – such as Mindspace REIT, CAMS, Happiest Minds Q2 FY 21 Q1 FY 21 Q4 FY 20 Q1 FY 20 • Consistent participation espec
Slide 33: Asset Management
ASSET MANAGEMENT AUM by Products YoY (Rs. Cr.) and Yield % AUM by Products QoQ (Rs. Cr.) and Yield % Discretionary Portfolio Management Schemes Alternative Investment Fund Discretionary Portfolio Management Schemes Alternative Investment Fund Mutual Fund 30,000 Ret. On Revenue from Operations 0.80%
Slide 34: 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 35: Thank You
THANK YOU LIFL WEALTH & ASSET MANAGEMENT
IIFL Wealth & Asset Management — Q2 FY21 Earnings Presentation on 6ix