Edelweiss Financial Services Limited · NSE:EDELWEISS

Edelweiss Financial Services — Shareholder Meeting (September 2023)

33 slides from Edelweiss Financial Services's shareholder meeting presentation, Sep 26, 2023

  1. Slide 1: Cover letter to stock exchanges for AGM presentation

    EW/Sec/2023-24/153 September 26, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Fort, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Scrip Code: - 532922 Symbol:– EDELWEISS Dear Sir/ Madam, Sub: 28th Annual General Meeting - P

  2. Slide 2: Edelweiss Financial Services Limited 28th Annual General Meeting

    Edelweiss Financial Services Limited 28th Annual General Meeting

  3. Slide 3: Contents

    Contents • FY23 - Update on the year 3 • FY19 to FY23 - Looking back to steer ahead 9 • Intrinsic Value - Our compass 26 2

  4. Slide 4: The year gone by; some wins & others in the making

    The year gone by; some wins & others in the making Nuvama demerger complete, 30% shares allotted to shareholders, listing done Ex-Insurance PAT grew 51% YoY Customer reach grows 36% YoY; added ~1.5 Mn customers in year Wholesale asset reduction of ~40% in the year Balance sheet remains robust with w

  5. Slide 5: Edelweiss at a glance – Year ended Mar 23

    Edelweiss at a glance – Year ended Mar 23 Net Worth Ex-Insurance PAT BVPS INR 8,502 Cr INR 610 Cr INR 72 (FV ₹1) Net Debt Liquidity as a % of Debt INR 16,360 Cr 15% 4 Liquidity and Net Debt excludes Nuvama Wealth Management

  6. Slide 6: Diversified with high quality and well capitalised businesses

    Diversified with high quality and well capitalised businesses Edelweiss Financial Services Ltd (EFSL) Asset Management Credit Insurance Asset Alternative Reconstruction Housing General Mutual Fund NBFC Life Insurance Asset Mgt Finance Insurance Edelweiss Edelweiss Edelweiss Asset ECL Finance Nido Ho

  7. Slide 7: Year-on-Year growth in PAT

    Year-on-Year growth in PAT INR Cr EFSL Asset Asset Credit ex-Insurance Management Reconstruction 610 318 253 177 405 155 112 67 Mar 22 Mar 23 Mar 22 Mar 23 Mar 22 Mar 23 Mar 22 Mar 23 51% YoY 164% YoY 26% YoY 38% YoY 6

  8. Slide 8: Earnings distribution across businesses

    Earnings distribution across businesses INR Cr Year Ended Business Business Mar 23 Mar Mar 22 22 Alternatives Asset Management 159 47 Mutual Fund 18 20 Asset Reconstruction 318 253 NBFC 139 98 Housing Finance 16 14 General Insurance (125) (105) Life Insurance (199) (206) Wealth Management 132 97 BMU

  9. Slide 9: Robust and well capitalised balance sheets

    Robust and well capitalised balance sheets Businesses Metric Mar 23 NBFC Capital Adequacy 34.3% Housing Finance Capital Adequacy 32.0% Asset Reconstruction Capital Adequacy 47.1% Life Insurance Solvency Ratio 220% General Insurance Solvency Ratio 180% 8

  10. Slide 10: FY19 to FY23 - Looking back to steer ahead

    FY19 to FY23 - Looking back to steer ahead 9

  11. Slide 11: FY19 – FY23, a phase of re-engineering

    FY19 – FY23, a phase of re-engineering Our key strategic choices 1. Unlock value for shareholders - Nuvama Wealth Management 2. Robust growth across businesses - Significant scale up in Asset Management and Insurance businesses 3. Building financial resilience - Reducing debt & wholesale assets 4. S

  12. Slide 12: FY19 – FY23, a phase of re-engineering

    FY19 – FY23, a phase of re-engineering Our key strategic choices 1. Unlock value for shareholders - Nuvama Wealth Management 2. Robust growth across businesses - Significant scale up in Asset Management and Insurance businesses 3. Building financial resilience - Reducing debt & wholesale assets 4. S

  13. Slide 13: Value unlock and Nuvama listing completed

    1 Value unlock and Nuvama listing completed Step 1 – Capital Raise Step 2 - Demerger Step 3 - Allotment Step 4 - Listing Phase I Phase II & III Allotment Listing Capital raise in Nuvama NCLT order received and made Allot 30% EFSL holdings to Listing of Nuvama effective for Phase II and Phase III Sha

  14. Slide 14: Quality business in a high growth opportunity segment

    1 Quality business in a high growth opportunity segment Nuvama Wealth Management Customer Assets (INR Cr) Net Revenue (INR Cr) Operating PAT (INR Cr) 2,28,000 368 2,13,000 1,575 1,322 292 1,67,000 998 200 Mar 21 Mar 22 Mar 23 Mar 21 Mar 22 Mar 23 Mar 21 Mar 22 Mar 23 CAGR : 17% CAGR : 26% CAGR : 36%

  15. Slide 15: FY19 – FY23, a phase of re-engineering

    FY19 – FY23, a phase of re-engineering Our key strategic choices 1. Unlock value for shareholders - Nuvama Wealth Management 2. Robust growth across businesses - Significant scale up in Asset Management and Insurance businesses 3. Building financial resilience - Reducing debt & wholesale assets 4. S

  16. Slide 16: Customer reach grew 8-fold in the past 4 years

    2 Customer reach grew 8-fold in the past 4 years Customer Reach (# in lakhs) Customer Assets (INR Cr) 8x 59 2.5x 1,97,450 76,300 7 Mar 19 Jun 23 Mar 19 Jun 23 15

  17. Slide 17: Led by scale up in Asset Management & Insurance businesses

    2 Led by scale up in Asset Management & Insurance businesses Mar 19 Mar 23 2.3 Lakhs 11.7 Lakhs 750 2,000 0.4 Lakhs 37.0 Lakhs 4.7 Lakhs 10.1 Lakhs 16

  18. Slide 18: Asset Management – AUM quadrupled in 4 years

    2 Asset Management – AUM quadrupled in 4 years Alternative Asset Management Asset Under Management (INR Cr) Fee Paying AUM (INR Cr) 2.4x 2x 46,500 23,200 19,600 11,130 Mar 19 Mar 23 Mar 19 Mar 23 Mutual Fund Asset Under Management (INR Cr) Equity AUM (INR Cr) 6x 1,05,000 5.6x 22,700 17,500 4,000 Mar

  19. Slide 19: Insurance – consistently outpacing industry growth

    2 Insurance – consistently outpacing industry growth General Insurance Gross Written Premium (INR Cr) AUM (INR Cr) 5x 552 3x 687 204 104 Mar 19 Mar 23 Mar 19 Mar 23 Life Insurance Gross Premium (INR Cr) Individual Annualized Premium Equivalent (INR Cr) 2x 1,676 1.5x 502 342 885 Mar 19 Mar 23 Mar 19

  20. Slide 20: FY19 – FY23, a phase of re-engineering

    FY19 – FY23, a phase of re-engineering Our key strategic choices 1. Unlock value for shareholders - Nuvama Wealth Management 2. Robust growth across businesses - Significant scale up in Asset Management and Insurance businesses 3. Building financial resilience - Reducing debt & wholesale assets 4. S

  21. Slide 21: Debt reduced from INR 45,000 Cr to INR 17,000 Cr in 4 years

    3 Debt reduced from INR 45,000 Cr to INR 17,000 Cr in 4 years INR Cr Debt Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Jun 23 NBFC 24,800 19,900 15,000 10,200 7,910 6,640 Housing Finance 4,470 3,860 3,000 2,300 1,850 1,655 Alternatives 135 - - - 245 260 Asset Reconstruction 4,830 4,375 3,200 3,100 2,915 2,330

  22. Slide 22: Wholesale assets reduced by more than 60%

    3 Wholesale assets reduced by more than 60% ECLF wholesale assets (INR Cr) >60% 15,500 11,200 5,700 Mar 19 Mar 21 Mar 23 Expect momentum to continue 21

  23. Slide 23: FY19 – FY23, a phase of re-engineering

    FY19 – FY23, a phase of re-engineering Our key strategic choices 1. Unlock value for shareholders - Nuvama Wealth Management 2. Robust growth across businesses - Significant scale up in Asset Management and Insurance businesses 3. Building financial resilience - Reducing debt & wholesale assets 4. S

  24. Slide 24: Seven High-Quality Independent Businesses

    4 Seven High-Quality Independent Businesses Edelweiss Financial Services Ltd AUM PAT Alternative INR 46,500 Cr INR 159 Cr Asset Asset Mgt Management Mutual Fund INR 1,05,000 Cr INR 18 Cr Asset Reconstruction INR 37,100 Cr INR 318 Cr NBFC INR 7,847 Cr INR 139 Cr Credit Housing INR 4,115 Cr INR 16 Cr

  25. Slide 25: Corporate Office - Lean & Agile

    4 Corporate Office - Lean & Agile Role of the Corporate Office • Capital allocation • Equity and liquidity management • Governance and oversight • Leadership development & evaluation Corporate Office – from FY20 till now • Lean corporate office; employee headcount moved from 600 to 70 post unbundlin

  26. Slide 26: Corporate Office – Balance sheet snapshot

    4 Corporate Office – Balance sheet snapshot Corporate Debt of INR 6,600 Cr is backed by two categories of assets: 1 Liquidable Assets Assets which can be liquidated in the near future INR Cr Treasury Assets 1,000 Liquid Investments 1,500 Credit Assets 1,400 GP Investment in EAAA Funds 1,300 Property

  27. Slide 27: Intrinsic Value – Our Compass

    Intrinsic Value – Our Compass "Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses” - Warren Buffett 26

  28. Slide 28: Our north star in the voyage - Intrinsic Value (IV)

    Our north star in the voyage - Intrinsic Value (IV) Why Intrinsic Value? • Markets in the mid-term may over or undervalue businesses, align over the long-term • We are focused on creating the value and believe over time markets will align • Measuring IV keeps us focused and informs our capital alloc

  29. Slide 29: Performance across key business metrices

    Performance across key business metrices INR Cr Business Metric FY23 FY22 Growth • Assets under Management (AUM) 46,500 30,500 52% Alternative Asset Mgt • Fee Paying AUM 23,200 17,600 32% • Assets under Management (AUM) 1,05,000 85,000 24% Mutual Fund • Equity AUM 22,740 19,600 16% • Gross Written P

  30. Slide 30: Our estimation of IV and its movement YoY

    Our estimation of IV and its movement YoY FY23 FY22 INR Cr Growth Business Intrinsic Value Business Intrinsic Value Alternative Asset Mgt 5,575 4,150 34% Mutual Fund 4,200 3,500 20% General Insurance 3,200 2,250 42% Life Insurance 5,150 4,750 8% Asset Reconstruction 3,450 3,100 11% NBFC 4,400 4,400

  31. Slide 31: Edelweiss’ share in IV and its movement YoY

    Edelweiss’ share in IV and its movement YoY INR Cr Business Edelweiss’ Stake FY23 – Edelweiss’ Share FY22 – Edelweiss’ Share YoY Change Alternative Asset Mgt 100% 5,575 4,150 34% Mutual Fund 100% 4,200 3,500 20% General Insurance 100% 3,200 2,250 42% Life Insurance 75% 3,875 3,150 23% Asset Reconstr

  32. Slide 32: 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 Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed

  33. Slide 33: Safe Harbour

    Safe Harbour Slide 3,4 EFSL ex-insurance PAT is post-MI, PATs for businesses are pre-MI Slide 3,15,16: Customer reach includes individuals covered under Group Insurance policies for LI and customer serviced since inception for GI Slide 3,21: ECLF Wholesale Assets includes gross loan book and SR Inve

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