Computer Age Management Services Ltd · NSE:CAMS
Computer Age Management Services — Q3 FY21 Earnings Presentation
47 slides from Computer Age Management Services's earnings presentation, Feb 12, 2021
Slide 1: Cover letter to BSE: Q3 FY21 financial data presentation
Your Services Solutions II Partner 1 1 " February, 2021 To, The Manager, Listing Department, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street Mumbai 400 001 Scrip Code: 543232 Trading Symbol : CAMS Dear Sirs/Madam, S u b : Presentation of the Standalone and Consolidated F i n a n c i a l Data for
Slide 2: FY21: Q3 Earnings Presentation
COMPUTER AGE MANAGEMENT SERVICES LIMITED FY21: Q3 Earnings Presentation
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions
Slide 4: Presenters
PRESENTERS Ram RamCharan CharanSesharaman Sesharaman Anuj Kumar CFO CFO- Designate Designate Whole time Director & Chief Executive Officer Somasundaram M. Chief Financial Officer Earnings Presentation 3
Slide 5: Presentation Flow
Presentation Flow Business Overview Financials About CAMS Appendix Business Highlights Financials Highlights Business at a Glance Corporate Structure Page No:06 Page No:12 - 16 Page No:28 - 29 Page No:41 AAuM Q3 – MF industry & CAMS Consolidated Statements Mutual Fund Services Business History and t
Slide 6: Business Overview
BUSINESS OVERVIEW
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS Historic high in transaction volume in PFRDA has selected CAMS as an eligible Dec.’20 at 63 Lakh entity for setting up CRA for NPS Franklin Templeton – Large transition CAMS serviced AUM grows by ~12% Q3 including rebadging in progress for mid YoY and now serves all top 5 mutual
Slide 8: Mutual Fund Industry & CAMS AAuM – Q3
MUTUAL FUND INDUSTRY & CAMS AAUM – Q3 Growth Equity Asset Industry AAuM 11.0% 5.2% Over PY Q3 Over PY Q3 Rs.29.7 trillion 7.7% 8.5% o Valuation gains partially offset by Over Q2 of CY Over Q2 of CY continued negative net inflow into equity assets Growth Equity Asset 11.6% 2.1% o Inflows through SIP
Slide 9: Operational Metrics – Q3
OPERATIONAL METRICS – Q3 Transaction SIP Unique Volume (Total) Transactions Investors Processed Serviced 82.0 mn 58.6 mn 16.2 mn ~1% YoY SIP Book 1% YoY Live Investor 5% YoY 3% QoQ 0.1% QoQ Folios 0.5% QoQ 20.4 mn 39.9 mn (as on 4% YoY 31st Dec 2021) 1% QoQ 3% YoY 0.3% QoQ Earnings Presentation 8
Slide 10: Mutual Fund Industry & CAMS AAuM – 9 Months
MUTUAL FUND INDUSTRY & CAMS AAUM – 9 MONTHS 5.1% 6.9% 1.7% CAMS Serviced Industry AAuM AAuM Market Share 27.3 trillion 19.2 trillion 70.4% Industry CAMS Equity AAuM Equity AAuM 1.6% 4.3% Earnings Presentation 9
Slide 11: Operational Metrics – 9 Months
OPERATIONAL METRICS – 9 MONTHS 238 mn 176 mn 16.2 mn Transaction SIP Unique Volume Transactions Investors Serviced 204 mn 40 mn SIP Book Live Investor Folios1 2.6% 3.9% YoY 1.4% 3.4% 4.9% Note: 1. Live Investor Folios as of 31st Dec 2020 Earnings Presentation 10
Slide 12: Financials
FINANCIALS 11
Slide 13: Revenue Highlights – Q3
REVENUE HIGHLIGHTS – Q3 5.6% YoY Revenue ₹1,860 mn 8.7% QoQ Asset 11.0% YoY Non-Asset 14.5% YoY Non-MF 31.3% YoY Based Based Revenue Revenue 8.3% QoQ Revenue 20.4% QoQ 4.2% QoQ Asset Mix Equity component : 34% Against 37% in Q3 PY; offset by higher debt component Earnings Presentation 12
Slide 14: Financials Q3
FINANCIALS Q3 PAT Return on 564 million Net-Worth* 22.0% YoY 46.0% 15.3% QoQ PBT Operating 756 million EBITDA 23.9% YoY 41.0% 14.4% QoQ **Cash and cash equivalents as of 31st Dec.’20: Rs.312 Crs Margin expansion partly due to reduced revenue from low margin businesses * Return on Net-worth – PAT/Per
Slide 15: Revenue Highlights – 9 Months
REVENUE HIGHLIGHTS 9 MONTHS 4.9% 27.5% Asset Based Fee Non-MF Fee ₹5,057 mn Revenue from 22.0% 90.2% Operations Non-asset MF Share of 3.6% Based Fee Operating Revenue Asset based fee impacted by unfavorable asset mix – equity component @ 34% against 37% in PY; offset by higher debt Earnings Presenta
Slide 16: Financials: FY21 9 Months
FINANCIALS: FY 9 MONTHS 1,936 mn 39.5% Return on 7.9% Net-worth PBT Operating 12.7% EBITDA PAT 1,452 mn 37.4% Earnings Presentation 15
Slide 17: Dividend Per Share
DIVIDEND PER SHARE ₹25.60 ₹7.90 ₹7.60 1st Interim ₹3.25 Special Dividend – ₹6.75 5th Interim 2nd Interim 3rd Interim 4th Interim Earnings Presentation 16
Slide 18: FY21 Q3 Consolidated P&L
FY21 Q3 CONSOLIDATED P&L Computer Age Management Services Ltd Statement of Unaudited Consolidated Financial Results For the Quarter & Nine months ended 30th September 2020 Quarter ended Nine months ended Year Ended Particulars (Rs in lakhs) 31 Dec 2020 30 Sep 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019
Slide 19: Consolidated Balance Sheet (1/2)
CONSOLIDATED BALANCE SHEET (1/2) Consolidated Balance sheet as at 31st December 2020 Particulars (Rs in Lakhs) As at 31st December 2020 As at 31st March 2020 A Assets 1 Non-current assets Property, plant and equipment 5,942.63 6,525.21 Right of use assets 6,918.01 9,906.30 Goodwill 13,359.83 13,359.
Slide 20: Consolidated Balance Sheet (2/2)
CONSOLIDATED BALANCE SHEET (2/2) Consolidated Balance sheet as at 31st December 2020 Particulars (in Rs. Lakhs) As at 31st December 2020 As at 31st March 2020 B Equity and Liabilities 1 Equity Share Capital 4,878.68 4,876.00 Other Equity 44,125.63 50,009.64 Share application money pending allotment
Slide 21: Consolidated Statement of Profit and Loss
CONSOLIDATED STATEMENT OF PROFIT AND LOSS Year ended Year ended Year ended Nine months ended Nine months ended Particulars (₹ mn) 31-Mar-18 31-Mar-19 31-Mar-20 December 31, 2019 December 31, 2020 Income Revenue From Operations 6,415.36 6,936.44 6,996.30 5,248.65 5,057.23 Other Income 198.34 180.63 2
Slide 22: Consolidated Statement of Assets and Liabilities
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES Particulars (₹ mn) As at March 31, 2018 As at March 31, 2019 As at March 31, 2020 As at December 30, 2019 As at December 31, 2020 Non-Current Assets Property, Plant and Equipment 700.37 710.28 652.52 664.15 594.26 Right To Use Asset - - 990.63 1,022.2
Slide 23: Consolidated Statement of Assets and Liabilities (Cont'd.)
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (CONT’D.) Particulars (₹ mn)7 As at March 31, 2018 As at March 31, 2019 As at March 31, 2020 As at December 31, 2019 As at December 30, 2020 Equity Share Capital 487.6 487.6 487.6 487.6 487.87 Other Equity 4,010.22 4,029.88 5,000.96 4,625.98 4,412.56
Slide 24: Consolidated Cash Flow Summary
CONSOLIDATED CASH FLOW SUMMARY Nine Months ended For the year ended Nine Months ended Particulars (Rs. in lakhs) 31st Dec 2020 31st Mar 2020 31st Dec 2019 Net cash flow from/(used in) operating activities (A) 18,957.49 19,885.89 16,224.45 Net cash flow from/(used in) investing activities (B) 2,671.7
Slide 25: FY21 Q3 Standalone P&L
FY21 Q3 STANDALONE P&L Computer Age Management Services Ltd Statement of Unaudited Standalone Financial Results For the Quarter & Nine months ended 31st December 2020 Quarter ended Nine months ended Year Ended Particulars (Rs in lakhs) 31 Dec 2020 30 Sep 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 31st
Slide 26: Standalone Balance Sheet (1/2)
STANDALONE BALANCE SHEET (1/2) Particulars (Rs in Lakhs) As at 31st December 2020 As at 31st March 2020 A Assets 1 Non-current assets Property, plant and equipment 5,827.08 6,398.16 Right to use assets 6,350.17 8,308.05 Intangible assets 1,046.04 1,074.72 Financial Assets - Investments 20,140.88 19,
Slide 27: Standalone Balance Sheet (2/2)
STANDALONE BALANCE SHEET (2/2) Particulars (Rs In Lakhs) As at 31st December 2020 As at 31st March 2020 B Equity and Liabilities 1 Equity Share Capital 4,878.68 4,876.00 Other Equity 40,195.66 44,032.62 Share Application money pending allotment 26.05 Total Equity 45,100.39 48,908.62 2 Non-current li
Slide 28: About CAMS
ABOUT CAMS
Slide 29: CAMS – Business at a Glance
CAMS – BUSINESS AT A GLANCE Technology-driven India’s largest registrar Services all top 5 MFs Leveraged domain financial infrastructure and transfer agent (“RTA”) and 9 of the 15 largest expertise, processes and services provider to of mutual funds (“MFs”) with MFs1; 19 years average and infrastruc
Slide 30: Key Highlights
KEY HIGHLIGHTS Large and Growing Scalable Mutual Funds Market 1 4 Technology Enabled Ecosystem Integrated Business Model Our Mission… Your Growth Strong Focus on and Longstanding Client 2 5 Process and Risk Management Relationships in MF Services Business Largest Infrastructure and Services Experien
Slide 31: CAMS – Mutual Fund Services Business
CAMS – MUTUAL FUND SERVICES BUSINESS Provides a range of technology-enabled infrastructure to mutual funds – Involved through the life cycle of an account from account creation to processing transactions and redemption of the amount invested Service Products Leveraged by AMCs Develop Triggered Produ
Slide 32: CAMS – Proprietary Technology Platforms and Mobile Applications
CAMS – PROPRIETARY TECHNOLOGY PLATFORMS AND MOBILE APPLICATIONS FOR THE MUTUAL FUND BUSINESS CAMS has developed and implemented various technology platforms and its technology driven infrastructure and services are integral to the operations of its clients mfCRM edge360 Mobility solution for MF RMs/
Slide 33: Mutual Fund Services Provided by CAMS
MUTUAL FUND SERVICES PROVIDED BY CAMS CAMS is involved through the life cycle of an account – from account creation to processing to redemption; Also provides statutory statements, transaction origination, operations, investor and distributor services, risk management services and compliance service
Slide 34: CAMS – Overview of Other Services
CAMS – OVERVIEW OF OTHER SERVICES Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors o 82 AIF clients with an AAUM of ₹159.45bn2 o Offers services such as creation of invest
Slide 35: CAMS – Overview of Other Services (Cont'd.)
CAMS – OVERVIEW OF OTHER SERVICES (CONT’D.) Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors o Verification and maintenance of KYC records of investors for use by financia
Slide 36: CAMS Selected as Eligible Entity for NPS CRA
CAMS – OVERVIEW OF OTHER SERVICES (CONT’D.) CAMS Selected as an eligible entity for setting up CRA for NPS o The evaluation and selection process was completed via RFP to evaluate capabilities, commercials and presentation to the selection committee Stakeholder services o A prerequisite for issuance
Slide 37: NPS CRA Market and Revenue Model
CAMS – OVERVIEW OF OTHER SERVICES (CONT’D.) NPS CRA Market - Players, growth and market size Revenue Model Subscription (No. of Subscribers) o Annual Maintenance (AMC) Fee FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 o Transaction based fee NPS 52,70,392 61,43,896 71,76,618 80,38,835 90,80,976 96,80,554 o Ac
Slide 38: CAMS – Compliance and Risk Management Architecture
CAMS – COMPLIANCE AND RISK MANAGEMENT ARCHITECTURE Relentless focus on systems and processes has allowed CAMS to become a trusted provider of services to its clients and other stakeholders Cyber Compliance Security Risk Regulatory Management Oversight Assists MF clients with ISO 27001:2013 certifica
Slide 39: Experienced Board and Marquee Shareholders
EXPERIENCED BOARD AND MARQUEE SHAREHOLDERS Marquee shareholders including Great Terrain (an affiliate of Warburg Pincus), HDFC and HDFC Bank Marquee Shareholders Board of Directors Great Terrain – Dinesh Kumar an affiliate of Mehrotra Natarajan Srinivasan Warburg Chairman & Independent Director Pinc
Slide 40: Experienced Senior Management Team
EXPERIENCED SENIOR MANAGEMENT TEAM Experienced management team, with an average work experience of 27 years and a demonstrated ability to grow and diversify the business and innovate services Anuj Kumar M. Somasundaram S.R. Ram Charan Whole time Director & Chief Executive Officer Chief Financial Off
Slide 41: Appendix
APPENDIX
Slide 42: Corporate Structure
CORPORATE STRUCTURE Computer Age Management Services Limited Mutual Funds Services, Alternate Investment Funds Services, Payment Services and Banking and Non-Banking Service Businesses 100% 100% 99.99% 100% CAMS Insurance Repository CAMS Investor Services Private CAMS Financial Information Sterling
Slide 43: History/Milestones
HISTORY/MILESTONES • The certificate of registration was issued to our • Our Company • Our Company Company was was converted was upgraded and a • CISPL was into a public incorporated as fresh certificate • Our Company incorporated on limited Company Computer Age of registration as was issued a Febru
Slide 44: Awards and Accolades
AWARDS AND ACCOLADES o Our Company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards 2015 o CIRSL was awarded ‘Best Newcomer Award’ at Asia Insurance Technology Awards o CIRSL was awarded ‘Best Service Provider’ award in ‘Feet on Street Collect
Slide 45: Shareholders' Information
SHAREHOLDERS’ INFORMATION Stock Data as on 31st Dec 2020 Shareholding Pattern (%) Market Capitalisation Shares Outstanding 8808 Crores 4,87,86,800 30.98% 20.62% Free Float Scrip Symbol / Code 3522 Crores CAMS/543232 Top Institutional Holders o SBI Funds Management Pvt Ltd. o Goldman Sachs Asset Mana
Slide 46: Glossary
GLOSSARY Term Description Term Description AAUM Average Assets under Management Kotak Kotak Mahindra Capital Company Limited ACH Automated Clearing House Kotak Mahindra AMC Kotak Mahindra Asset Management Company Limited Aditya Birla Capital Aditya Birla Capital Limited KRA KYC Registration Agency A
Slide 47: Thank You
Thank You Computer Age Management Services Limited NO.178/10 Kodambakkam High Road Ground floor, Opp. Hotel Palmgrove, Nungambakkam, Chennai - 600 034 For any queries please write to us: shareholderrelations@camsonline.com
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