Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (March 2018)
29 slides from Smc Global Securities Ltd. (india)'s investor presentation, March 2018
Slide 1: Corporate Presentation
yf US) ~ smc Moneywise. Be wise. Corporate Presentation SMC GLOBAL SECURITIES LIMITED
Slide 2: Disclaimer
Disclaimer This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person. Any failure to comply with these restrictions may constitute a violation of applicable laws.
Slide 3: Table of Contents
Table of Contents 1 Key Discussion Points 2 Company Overview 3 Segment Overview and India Market Opportunity 4 Financial Highlights 2
Slide 4: Section 1: Company Overview
Osme Moneywise. Be wise. Section 1 Company Overview
Slide 5: A Leading Diversified Financial Services Company in India
A Leading Diversified Financial Services Company in India Overview Contribution (Fiscal Year ended March 31, 2017) • Founded in 1994 and based in New Delhi, SMC is a diversified financial Revenue ($ in millions) Pre-Tax Income ($ in millions) services company Total: $82.1MM Total: $10.5MM • SMC has
Slide 6: Group Structure
Group Structure Millennium Sanlam International Signature Global Investment and Investment Partners Bennett, Coleman Cresta Fund Limited Promoters (India) Private Others Acquisition Co. Inc Limited and Co. Limited (Mauritius) Limited (USA) (South Africa) 58.6% 10.2% 8.4% 7.8% 3.8% 2.6% 8.6% SMC Glob
Slide 7: SMC's Evolution
SMC’s Evolution Launch and Expansion Via Expansion of Continued Strategic Beginnings Trading & Product Build- Relationships Distribution Out and M&A Business • 1990 – S.C. Aggarwal and • 1995 – Equity brokerage • 2008 – Wealth management, • 2016 – SMC Global IFSC acts as Mahesh C Gupta started and a
Slide 8: India's Dynamic Economy
India’s Dynamic Economy India is one of the fastest growing large economies…(1) …with increasing household savings…(3) (Estimated 2016 GDP growth rates of largest economies(2)) (Household savings, $ in billions) 7.6% $1,206 6.7% $1,095 $991 $897 $808 $688 $735 $662 Brazil Russia 1.6% 1.8% 1.9% 0.5%
Slide 9: SMC's Investment Highlights
SMC’s Investment Highlights 1 Large market with significant tailwinds 2 Wide range of product and service offerings to meet diverse client needs 3 Broad and diverse distribution network with scalable infrastructure 4 Key strategic relationships driving revenue and growth 5 Recognized leader with str
Slide 10: Diverse Product and Service Offerings
Diverse Product and Service Offerings • We have a diverse and complementary set of product offerings, which: Creates cross-sell opportunities from existing clients Attracts new clients who seek a comprehensive financial services platform Reduces our dependence on any particular product, portfo
Slide 11: Broad Distribution Network and Scalable Infrastructure
Broad Distribution Network and Scalable Infrastructure 2,950 o v e r SMC’S India Presence employees of SMC Global Securities SMC Corporate Office SMC Branch Office e m p l o y e e s 2,500 SMC Sub-Broker / Authorized Person exclusively distribute SMC’s financial products s u b - b r o k e r s 9,800 o
Slide 12: Key Strategic Relationships Driving Revenue and Growth
Key Strategic Relationships Driving Revenue and Growth Punjab National Bank • Strategic relationship with Punjab • Strategic relationship with Honda since National Bank (PNB) since 2009 2009 • SMC provides online brokerage services to PNB • SMC is the exclusive pan-India auto insurance broker client
Slide 13: Recognized Leader
Recognized Leader Strong reputation in India Well-regarded Board of Directors Respected investors 2017 2017 • 7 Independent and non- Best Broker with Best performing in-house research retail broker of executive board members in Bullion industry Northern region • Approximately 375 years of combined •
Slide 14: Multiple Avenues for Continued Growth
Multiple Avenues for Continued Growth • Formalized cross-selling efforts, implemented new salesforce training and 1 created a committee focused on improving cross-selling – Increased cross-selling rate to 10% for fiscal year ended March 31, 2017 Intensify client cross-selling • Exploring an upgrade
Slide 15: Experienced Board and Management Team
Experienced Board and Management Team Promoters Mr. Subhash Chand Aggarwal Mr. Mahesh C Gupta Chairman & Managing Director Vice Chairman & Managing Director Fellow Member, ICAI; Former Chairman of India EU Fellow Member, ICAI Business Promotion Council, ASSOCHAM, Former Co- 25+ years of Experience i
Slide 16: Section 2: Segment Overview and India Market Opportunity
Section 2 Segment Overview and India Market Opportunity 15
Slide 17: Trading and Distribution Overview
Trading and Distribution Overview Segment Description • SMC’s most established business line Number of Customers • Leading brokerage platform in India (Trading Customers) 525,479 • Offers a wide range of brokerage, clearing, third-party distribution and depository services as well as low-risk arbitr
Slide 18: Trading and Distribution Offerings & Opportunity
Trading and Distribution Offerings & Opportunity Offerings Equity brokerage: Offers trading in the equities and derivative segments to middle class and high net worth clients, with 4.1% market share across Indian exchanges. Customer base of 4,20,000+ in broking and allied services Commodity brokerag
Slide 19: Financing Overview
Financing Overview Segment Description • Offers a variety of loan products to individuals through Moneywise, a registered non-banking financial company (NBFC) • NBFCs are registered with the Reserve Bank of India and have strict requirements: – Capital Adequacy Ratio of 15% (SMC’s CAR: 46.57% as on
Slide 20: Financing Offerings & Opportunity
Financing Offerings & Opportunity Offerings India Market Opportunity Capital Markets Loans Indian NBFCs have significant advantages vs. – Loans to retail clients, primarily to traders and investors banks – Includes loans against securities, loans against commodities and loans to Not subject to pri
Slide 21: Advisory Overview
Advisory Overview Segment Description • Established wealth management and investment banking businesses in 2008 to complement trading and distribution • Received several real estate advisory awards since the launch of our real estate advisory business in 2014(1) • Primarily fee-based revenue source
Slide 22: Advisory Offerings & Opportunity
Advisory Offerings & Opportunity Offerings India Market Opportunity Wealth & portfolio management: Provides financial planning advice to Outsized Growth in Real Estate Industry(1) approximately 9,400 clients and offers clients mutual fund units through Construction market in India is expected to g
Slide 23: Section 3: Financial Highlights
Section 3 Financial Highlights 22
Slide 24: Impressive Financial Growth
Impressive Financial Growth(1) Total Revenue Book Value Strong year-over-year growth in FY 2017 ($ in millions) ($ in millions) driven by: $82.1 $97.1 $70.3 $65.6 • Increase in fee and $57.7 $91.5 commission income $87.1 in the Trading and $83.0 Distribution segment • Increase in net interest income
Slide 25: Trading and Distribution
Trading and Distribution • Stable growth in SMC’s Trading & Distribution Financial Summary Key Highlights segment ($ in millions) • Increasing brokerage FY 2016 FY 2017 Dec. 2017 US$450mn+ cumulative AUM under volume and IPO mutual funds distribution revenues Revenue $53.7 $69.6 $57.7 • Increased tr
Slide 26: Financing
Financing • Loan portfolio diversification continues to Financial Summary Loan Portfolio Breakdown(1) be a focus for SMC ($ in millions) Medical Equipment / Unsecured Personal Other Equipment Loans Financing 0.3% – Introduced medical FY 2016 FY 2017 Dec. 2017 2.3% Secured Business Loan Loan Against
Slide 27: Advisory
Advisory • Real estate advisory services to clients on both Financial Summary Total Clients the buy-side (investors) and ($ in millions) the build-side (developers) FY 2016 FY 2017 Dec. 2017 9,400 • Total assets under 9,276 administration under Revenue $8.1 $6.4 $3.3 wealth & portfolio management ro
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet In US$mn FY13 FY14 FY15 FY16 FY17 Dec-17 FY13-17 CAGR Total Equity and Liabilities Shareholders' Funds 75.5 78.1 83.0 87.1 91.5 97.1 4.9% Minority Interest 0.2 0.1 0.1 0.1 0.5 0.4 23.4% Non-current Liabilities Long-term borrowings 0.5 1.4 0.1 0.1 0.6 6.4 5.9% Other non-cur
Slide 29: Consolidated Income Statement
Consolidated Income Statement In US$mn FY13 FY14 FY15 FY16 FY17 Till 31 Dec 2017 FY13-17 CAGR Revenue Revenue from operations 44.8 45.0 57.3 64.6 80.2 69.7 15.7% Other income 0.5 1.3 0.9 1.1 1.9 0.6 Total revenue 45.3 46.3 58.2 65.6 82.1 70.3 16.0% % growth -- 2.1% 25.7% 12.7% 25.2% -- Expenses Exch
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