Nuvama Wealth Management Limited · NSE:NUVAMA

Nuvama Wealth Management — Corporate Update (January 2023)

35 slides from Nuvama Wealth Management's corporate update, January 2023

  1. Slide 1: Nuvama Strategic Overview

    NUVAMA Strategic Overview January 2023

  2. Slide 2: Contents

    Contents 1 2 3 4 5 WHO WE INDIA WEALTH OUR OVERALL WAY ARE OPPORTUNITY BUSINESSES PERFORMANCE FORWARD 2

  3. Slide 3: 1. Who We Are

    1. WHO WE ARE  Integrated wealth management platform 2. INDIA WEALTH  Built on strong foundation of Client-first OPPORTUNITY  Only established player straddling across Affluent to UHNI 3. OUR SEGMENTS client segments 4. OVERALL  Solution oriented approach with the exhaustive suite of PERFORMANCE

  4. Slide 4: Our Evolution: Individual businesses to a publicly listed, independently governed company

    Our Evolution: Individual businesses to a publicly listed, independently governed company BUILT BUSINESSES - BACKED BY GLOBAL PARTNERSHIP VALIDATING TRANSITIONED SMOOTHLY LISTED, BOARD GOVERENED INDEPENDENT COMPANY HIGH-QUALITY PARENTAGE PLATFORM STRENGTH TO OPERATE INDEPENDENTLY Independent Board W

  5. Slide 5: Client-first foundation

    Client-first foundation Our vision is to provide our clients with comprehensive and tailored wealth management solutions and advice WE SERVE WE PROVIDE ACCESS TO 1. PRODUCTS 2. ADVISORY 3. CAPITAL MARKETS ULTRA HIGH NETWORTH 3rd Party Proprietary Wealth Institutional Broking Investment Product (In-h

  6. Slide 6: Amongst established wealth managers covering client segments constituting ~80% of wealth

    Amongst established wealth managers covering client segments constituting ~80% of wealth INDIA WEALTH LANDSCAPE # HOUSEHOLDS FINANCIAL WEALTH (~ In lakhs) FY20 (~ ₹ tn) 0.2 143 UHNI 23.3 62 HNI AND AFFLUENT 3,330 57 MASS MARKET RETAIL Total 3,350 262 6

  7. Slide 7: A high growth company with diversified and superior quality of earnings

    A high growth company with diversified and superior quality of earnings NET REVENUE ₹ 1,028 ₹ 998 ₹ 1,322 ₹ 1,136 (Crore) -3% * +32% +17% YoY Wealth and Investment 37% Management (Fee Based) 43% 47% 59% 16% 7% Wealth and Investment 11% Management (NII) 11% 48% 51% 42% 30% Capital Markets FY20 FY21 *

  8. Slide 8: 2. India Wealth Opportunity

    1. WHO WE ARE  India's financial services sector is poised to transform 2. INDIA WEALTH o Financial wealth would continue to grow rapidly OPPORTUNITY o Investment asset class will grow even faster 3. OUR SEGMENTS o Rising formal penetration will multiply the opportunity 4. OVERALL PERFORMANCE  Mak

  9. Slide 9: India's economic growth is at an inflection point

    India’s economic growth is at an inflection point Poised to grow to US$ 10 tn by end of decade “Financialization” a key drive to propel this growth Gross Household Financial Savings Ratio 10,000 ₹ 21 tn ₹ 44 tn Next $1tn achieved in 8 years 71% 60 years to achieve first $1tn 2,000 45% 1,000 20 FY12

  10. Slide 10: India's financial services sector is poised to transform

    India's financial services sector is poised to transform Continued momentum across segments, a catalyst to growing wealth WEALTH MANAGEMENT ASSET MANAGEMENT CAPITAL MARKETS o Wealth will grow to reach ₹ 800+ tn by o AUM will grow to reach ₹ 90+ tn by FY26 o Multiple reforms developing deeper 2025 (1

  11. Slide 11: Financial wealth would continue to grow rapidly

    Financial wealth would continue to grow rapidly Financial assets would reach ₹ 500+ tn by FY25 Figures are in ₹ tn BANK DEPOSITS MUTUAL FUNDS AIF 170 3.1 38 15% 19% 73% CAGR CAGR CAGR 9.5 7.6 0.04 FY00 FY22 FY14 FY22 FY14 FY22 Bank deposits have doubled every MF present size equivalent to 1/5th of ₹

  12. Slide 12: Making India's wealth industry a structural and scalable opportunity

    Making India’s wealth industry a structural and scalable opportunity  Enhanced regulatory focus  Technology disruptions Consolidation  Increasing product complexity Rising India formal wealth penetration (Present: India-14%, US-75%)  Demographics and rising affluence Greater  Critical to client

  13. Slide 13: 3. Our Businesses

    1. WHO WE ARE  Ultra High Networth and Family Offices 2. INDIA WEALTH OPPORTUNITY  High Networth and Affluent 3. OUR SEGMENTS 4. OVERALL  Investment Management PERFORMANCE 5. WAY FORWARD 13

  14. Slide 14: Ultra High Networth and Family Offices

    Ultra High Networth and Sub title Family Offices 14

  15. Slide 15: Amongst top private wealth players in the country

    Amongst top 2 private wealth players in the country 2,900 ₹ 1,21,000 cr UHNI Client Assets 1,21,000 ₹ 327 cr +15% cr. Private Wealth AUA CAGR (5Y) Revenue 9 mo. FY23 +35% YoY 50 ~150 NPS RMs ₹ 345 cr Capital Market Revenue 9 mo. FY23 15

  16. Slide 16: Our Strategic Advantage

    Our Strategic Advantage 1. Differentiated Platform to gain clients mind share 2. Well scaled and high-quality team 16

  17. Slide 17: Value creation through enabling ecosystem

    Value creation though enabling ecosystem CLIENT NEEDS VALUE PROPOSTION Grow & A Preserve wealth Management Asset B  Solution oriented Income Generation approach - Fulfil all Tax Efficiency client goals  Integrated, Superior Financing and multi-product suite - Business monetization CLIENT FA Stake

  18. Slide 18: Market dominating capital market franchise

    Market dominating capital market franchise 700+ 280+ 450+ ~ ₹ 44,000 450+ Institutional clients Companies under Custody Investment Banking AUC and CUC in cr (Public-side) Research Coverage Clients Deal Closures  Leading institutional equity platform, strong distribution capability, reach across NA,

  19. Slide 19: High Networth and Affluent

    High Networth and Affluent Sub title 19

  20. Slide 20: Leading pure wealth management player in HNI and Affluent client segment

    Leading pure wealth management player in HNI and Affluent client segment ~1 mn Clients ₹ 55,000+ cr ₹ 401 cr Client Assets Revenue 1,21,000 cr. 9 mo. FY23 +30% AUA CAGR (5Y) +31% YoY 82 NPS ~930 RMs 20

  21. Slide 21: Our Strategic Advantage

    Our Strategic Advantage 1. Large and under 2. Scaled and serviced client differentiated platform segment 3. Proven engine for RM acquisition and growth 4. Unique hybrid fulfilment model of technology + RMs 21

  22. Slide 22: Scaled and differentiated platform

    Scaled and differentiated platform While numerous players are now competing for this segment, a category with high barriers to scale and succeed, we are one of the leading pure wealth managers catering to these clients Multi Product Hybrid Delivery Access Across Well Scaled Suite Channel Wide Geogra

  23. Slide 23: Investment Management

    Investment Management Sub title 23

  24. Slide 24: Focused and high-performing alternatives investment management business

    Focused and high-performing alternatives investment management business ₹ 3,700 cr Fee paying AUM ₹ 63 cr 1,21,000 ₹ 5,100 cr cr. Revenue AUA AUM 9 mo. FY23 ₹ 1,580 cr Capital ~3,100 Deployed Investors 24

  25. Slide 25: Our Strategic Advantage

    Our Strategic Advantage 01 02 03 04 Customer Ability to Scale with Proven Execution Digital Insights Speed Capabilities Platform  Differentiated products  Wealth management led rapid  Best-in-Class performance  Infinity platform: Bespoke and powered by deep insights from scale-up of asset manage

  26. Slide 26: 4. Overall Performance

    1. WHO WE ARE  Delivered strong performance over years 2. INDIA WEALTH  Diversified and resilient revenue streams OPPORTUNITY o Wealth and Investment Management today 3. OUR SEGMENTS constitutes ~70% of earnings 4. OVERALL o Distribution product income accounts for majority of PERFORMANCE wealth m

  27. Slide 27: Delivered strong performance over years

    Delivered strong performance over years Stable growth and on track to deliver PAT growth of ~20%+ YoY NET REVENUE (₹ cr) OPERATING PAT (₹ cr) 1,322 1,136 312 253 725 162 FY19 FY22 9 mo. FY23 FY19 FY22 9 mo. FY23 CLIENT ASSETS (₹ cr) CLIENTS (Count) 2,10,000 2,25,000 10,35,000 8,60,000 1,06,000 4,87,

  28. Slide 28: Diversified and resilient revenue streams

    Diversified and resilient revenue streams WEALTH AND INVESTMENT MANANEGEMENT EARNINGS DISTRIBUTION ACCOUNTS FOR MAJORITY TODAY (9 mo. FY23) CONSTITUTES ~70% OF TOTAL OF WEALTH AND INVESTMENT MANAGEMENT EARNINGS 8% 5% 16% 30% 70% 53% 18% Distribution Wealth Broking NII Wealth Float Capital Markets We

  29. Slide 29: Strong client addition and enhanced engagement

    Strong client addition and enhanced engagement AFFLUENT AND HNIs UHN AND FAMILY OFFICE CORPORATE AND INSTITUTIONS 9 mo. FY23 CAGR SINCE FY17 9 mo. FY23 CAGR SINCE FY17 9 mo. FY23 CAGR SINCE FY17 Client Assets in cr Client Assets in cr AUC and CUC in cr ₹ 55,000 27 % ₹ 1,21,000 15% ₹ 44,000 46 % Numb

  30. Slide 30: Delivering best-in-class outcomes

    Delivering best-in-class outcomes HIGHER PRODUCTIVITY (Wealth Management) LEADING RETURNS LEADING RESEARCH AFFLUENT AND HNIs UHNI AND FAMILY OFFICE Investment Management ₹ ~60 cr ₹ ~4,000 cr 280+ Amongst top Client Assets Client Assets quartile Companies per RM per team leader under coverage Fund Re

  31. Slide 31: Won accolades across credible platforms

    Won accolades across credible platforms Select Awards and Recognitions Best Private Bank - India Global Private Banking Innovation Awards – 2022 Best Broker - India FinanceAsia Country Awards – 2016, 2017, 2018, 2020, 2021, 2022 Best Private Bank for Family Offices, India Asiamoney Asia Private Bank

  32. Slide 32: 5. Way Forward

    1. WHO WE ARE  Necessary fundamentals in place 2. INDIA WEALTH OPPORTUNITY  Adequately capitalized to achieve future goals 3. OUR SEGMENTS  Well defined trajectory for each segment 4. OVERALL PERFORMANCE 5. WAY FORWARD 32

  33. Slide 33: Long-term objectives

    Long-term objectives Wealth and Investment Operating leverage to Be client-first in Management to be key deliver significant everything we do drivers and would improvement in cost to constitute 80-90% of income ratio earnings 33

  34. Slide 34: Well defined trajectory for each segment

    Well defined trajectory for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS OUTCOME Add New Scale 1. Grow Wealth Efficiently Target In 3 years grow clients Segments Management and client assets 20% Yield to 1.7 - 2 x Cross-Sell Improvement 80% 2. Significantly Scale Product Distributio

  35. Slide 35: 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 Nuvama Wealth Management Ltd. or any of its subsidiaries and associate companies (“Nuvama”)

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