Angel One Limited · NSE:ANGELONE
Angel One — Angel Broking — Investor Presentation (April 2021)
44 slides from Angel One's investor presentation, Apr 5, 2021
Slide 1: Exchange filing cover letter
To, Listing Department Department of Corporate Service National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 051. Mumbai - 400 001. Symbol: ANGELBRKG Scrip Code: 543235 Sub: Invest
Slide 2: Investor Presentation April 2021
Investor Presentation April 2021 1
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel Broking Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: Digitalization: A Key Driver
Digitalization: A Key Driver Customers’ Choice For Access To Markets Using Proprietary Digital Seamless Digital Experience Digital Platforms Properties Equity Commodity Currency Lending MFs Insurance Bonds Gold Data Science Approach Superior Product & Service Trusted Brand With Growing Using AI & ML
Slide 5: One Of The Largest Digital Retail Broking House
One Of The Largest Digital Retail Broking House Digital Model: Scalable & Sustainable 3rd Largest 2nd Largest 8.1% In NSE Active Clients As On Feb’21 In Incremental NSE Active Clients In Feb’21 Share In NSE Active Client Base In Feb’21 4.1mn 955,684 15.2% Total Client Base As Of Mar ‘21 Gross Acquis
Slide 6: Technology Powered Business
Technology Powered Business Peak trades handled in Q4 ’21, demonstrating robust IT infrastructure 5.0 mn App downloads* 10.3mn Technology Powered Avg. time taken to onboard clients 5 mins Direct clients on-boarded digitally 100% Orders executed online by direct clients >99% Orders placed through mob
Slide 7: 4th Fastest Growing App In Finance Category
4th Fastest Growing App In Finance Category India Mobile App Stats: 2020 India is the 2nd 24.27 bn US$ 0.50 bn 650.66 bn largest market App downloads Consumer spend on apps Hours spent Globally in terms of hours spent Asia Pacific Region (Ranked based on YoY growth in Android Phone Time Spent among
Slide 8: Our Transformational Journey
Our Transformational Journey
Slide 9: Successful Digital Transformation Leading To A Scalable And Profitable Business Model
Successful Digital Transformation Leading To A Scalable And Profitable Business Model Pre – 2015 2015-19 2019 Onwards Digital Model • ZERO branches + Flat Pricing Physical Model Physical + Digital Model • 100% Digital Acquisition, On- • 180+ branches • Reduced Branches boarding, Trade Execution, • L
Slide 10: End-To-End And Advanced Digital Experience
End-To-End And Advanced Digital Experience On-Boarding Daily Engagement Retention Artificial Intelligence And Machine Learning Driven Client Engagement And Services Data science driven approach to micro-target many segments of diverse audience 5+ Digital channels of engagement with clients and help
Slide 11: Best In Class Product Suite
Best In Class Product Suite Seamless Experience Across Digital Platforms At Most Competitive Price Angel Broking Angel Broking Machine learning based advisory, ARQ Mobile App Web Straight through process for client on- ₹0 boarding within minutes For Equity Delivery. No Hidden Charges “ARQ” Advisory
Slide 12: Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ
Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ Provides equity investment advisory services Alpha-generating algorithms based on multiple fundamental and ARQ Provides superior risk-adjusted returns quantitative factors ARQ Prime Outperforms Key Indices Key Features Of ARQ Prime
Slide 13: Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients
Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients ₹ Free Research & Advisory Margin Funding Fundamental | Technical | ARQ Seamless, Pre-approved limits Advisory at no additional charge Securities as collateral NIL fund transfer charges F&O trading possible with del
Slide 14: Huge Untapped Potential
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Slide 15: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market Rising Penetration Of Demat Accounts In India Steady Growth In Demat Accounts In India (Mn) Inflection Point 3.7% 11.8% CAGR 29% 3.1% 2.7% Annualized 50 2.4% 2.1% 41 1.8% 2.0% 36 1.7% 1.7% 32 25 28 21 22 23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Dec'20 FY13 FY1
Slide 16: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition Top 5 Brokers* Constitute 44% In Cumulative NSE Active Clients Base (Mn) Top 5 Brokers* Others Cumulative: 16.0 14.2 1.8x Growth 12.2 9.6 10.8 9.0 9.0 9.0 8.6 8.1 7.2 7.8 7.2 7.0 Top 5 Brokers: 5.6 7.0 2.0 2.4 3.0 4.1 4.0x Growth 1.7 Q1 '20 Q2 '20 Q3 '20 Q4 '20
Slide 17: Digital Business Driving Exponential Growth For Angel
Digital Business Driving Exponential Growth For Angel
Slide 18: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base Expanding Market Share In NSE Active Client Base 7.6% 1.6x 7.1% 6.3% Expansion 5.3% In Market 4.8% 4.8% 4.9% Share 3rd Rank in Feb’21 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 (Cumulative) Angel’s NSE Active Client Base (Mn) 0.4 0.4 0.5 0.6
Slide 19: Large Expansion In Retail ADTO Market Share Across Segments
Leading To Large Expansion In Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 16.1% 20.8% 5.7x 3.7% 4.7% 5.9% 6.9% 8.2% 12.3% Growth Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21# F&O Market Share (%) 20.9% 16.1% 12.1% 6.2x 3.4% 4.4% 5.6% 6.7% 7.8% Growth Q1 '20 Q2
Slide 20: Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities 92% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q3 ’21 (‘000) 550 511 48 39 Tier 1: 4.1x Growth 347 197 188 Tier 2: 6.7x Growth 37 231 126 141 25 119 15 85 13 305 283 Tier 3: 9.3x Growth 68 10 42 48 183 28 121 64 78
Slide 21: Digital Transformation Driving Strong Client Acquisition
Digital Transformation Driving Strong Client Acquisition 90% Of Gross Clients Added Under Flat Fee Plan Traditional Plan 19% 20% 19% 10% 10% 10% 10% 29% (Driven by AP network) 81% 80% 81% 90% 90% 90% 90% 71% Flat Fee Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Gross Client Addition 14.1x
Slide 22: Digital Business Drives Multifold Increase In ADTO Across Segments
Digital Business Drives Multifold Increase In ADTO Across Segments Flat Fee Dominates Overall ADTO 16% 17% 7% Traditional Plan 27% 27% (Driven by AP 40% 54% network) 76% 84% 83% 93% 73% 73% 60% 46% Flat Fee 24% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Strong Growth In Overall ADTO 4,5
Slide 23: Strong Growth In Client Activity Across Segments
Strong Growth In Client Activity Across Segments Growth In Cash Segment Growth In F&O Segment Growth In Commodity Segment Cash ADTO (₹ Bn) No. Of Trades (Mn) F&O ADTO (₹ Bn) No. Of Trades (Mn) Commodity ADTO (₹ Bn) 80 120 4,000 120 80 No. Of Trades (Mn) 9 103 105 106 8 70 98 3,500 70 8 100 100 85 6
Slide 24: Financial Highlights
rt Money ° i ANGEL BEE @ Mobile App \\ a Angel Broking
Slide 25: Q3 FY21: Key Highlights
Q3 FY21: Key Highlights 18% 76% 16.1% ₹ 5,705 mn QoQ Growth in Gross Client QoQ Growth in Avg. Daily 384 bps QoQ gain in Overall Average client funding book for Base Turnover Equity ADTO Market Share Q3 FY21 ₹ 732 mn ₹ 3,156 mn ₹ 1,093 mn ₹ 1,045 mn -1.8% QoQ Lower PAT -0.7% QoQ Lower Gross 4.8% QoQ
Slide 26: Impact Of New Margin Regulations
Impact Of New Margin Regulations Implementation Timeline Average Monthly Net Broking Income Overall ADTO (₹ Mn) (₹ Trn) % of Peak 2.6 Phases Implementation 492 Margin 434 443 2.3 408 429 1.9 Phase I 25% Dec’20 – Feb’21 339 1.3 Avg. ₹ 1.7 Trn Phase II 50% Mar’21 – May’21 0.6 Phase III 75% June’21 – A
Slide 27: MTF Book Spread Over Wide Customer Base
MTF Book Spread Over Wide Customer Base MTF Book Size Low Per Client Exposure MTF Book Segmentation (₹ Mn) (₹) 5,698 5,503 5,420 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 55,388 2.2% 2.0% 2.1% 50,703 51,088 6.9% 6.6% 5.8% 91.0% 91.4% 92.1% Q3 '20 Q2 '21 Q3 '21 Q3 '20 Q2 '21 Q3 '21 Q3 '20 Q2 '21 Q3 '21 NIL NPAs
Slide 28: Q3 FY21 Total Net Revenue Bridge
Q3 FY21 Total Net Revenue Bridge Movement In Total Net Revenue (₹ Mn) 337 2,219 2,117 -29 -88 -118 Q2 FY21 Net New Margin Net Interest Income Trading Days Client Activity Q3 FY21 Net Revenue Norms Revenue (wef Dec'20) Q3 FY21 Total Net Revenue was impacted on account of: 4 Less Trading Days translat
Slide 29: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Other 3% 4% 4% 4% 4% 5% 8% 1% 1% 1% 2% 1% 1% 1% 4% 4% 5% 5% 16% 7% 7% 7% 28% 24% 22% 20% 17% 14% 63% 66% 69% 69% 72% 70% 70% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Gross Broking Revenue Split F&O Ca
Slide 30: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix Age-wise Net Broking Revenue Split (₹ Mn) (1.88mn clients added since April’19) <2 years 2-5 years >5 years 1,303 1,329 1,016 170 151 276 260 700 755 150 633 646 121 239 Digitization 98 97 107 138 160 183 journey started 124 857 919 626 in April 2019 is 410 411 4
Slide 31: Rapidly Growing Digital Business Contributes To Majority Of Net Revenue
Rapidly Growing Digital Business Contributes To Majority Of Net Revenue Declining Contribution Of Traditional Plan Net Broking Revenue, In Total Net Revenue (Traditional Plan Net Broking Revenue / Total Net Revenue) 50% 45% 42% 35% 33% 28% 22% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 (₹ Mn)
Slide 32: Technology Adoption Creating Business Flexibility
Technology Adoption Creating Business Flexibility Right Sizing Overall Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 3,428 450 2,839 2,733 2,787 2,503 2,401 2,470 388 358 369 335 330 343 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3
Slide 33: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT Consolidated EBDAT Margin (₹ Mn) 7.6x 49% 49% 1,043 1,093 43% 39% 36% 696 30% 492 421 340 12% 144 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 EBDAT Margin : Flat Fee Plan EBDAT
Slide 34: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Total Gross Revenues Profit After Tax Gross Broking Interest Income Other TTM PAT: ₹ 2,287 mn Includes tax Despite 6% lesser impact of ₹ 49 mn trading days for earlier years +29% -1% +55% -2% +24% 411 505 746 732 +48% +8% 546 441 -4% +3% 290 395 +17% 483 164
Slide 35: Financial Snapshot
Financial Snapshot (₹ Mn) Total Income Cost To Net Income Profit After Tax 5,551 8,801 13.2% 32.3% RoE 74.1% 1,206 1,961 1,382 52.4% 525 1,369 6,212 542 3,657 9M '20 9M '21 9M '20 9M '21 9M '20 9M '21 Return on Average Equity; RoE is Annualised Gross Broking Interest Income Other *9M FY21 Networth i
Slide 36: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q3 FY21 Q2 FY21 Q3 FY20 9M FY21 9M FY20 FY20 (a) Interest Income 381 493 358 1,224 1,228 1,577 (b) Fees and commission income 2,655 2,604 1,418 7,290 4,085 5,644 (c) Net gain on fair value changes 32 1 12 36 6 25 Total Revenue from o
Slide 37: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Dec’20 Sep’20 Mar’20 Financial Assets (a) Cash, cash equivalents and Bank Balance 21,371 25,996 14,136 (b) Trade Receivables 457 459 390 (c) Loans 6,045 6,272 2,806 (d) Investments 30 25 353 (e) Other financial assets 9,698 968 2,706 Non-finan
Slide 38: Way Forward
Way Forward Strengthen our leadership position to become the largest retail broking house in India Largest Retail Broking House Establish a substantial client base in investment advisory business to support Establish Investment growth Advisory Robust Technology Infrastructure Augment investment in m
Slide 39: About Us
rt Money ° i ANGEL BEE @ Mobile App \\ a Angel Broking
Slide 40: Board Of Directors
Board Of Directors Dinesh D. Thakkar Vinay Agrawal Ketan Shah Promoter, Chairman and MD Director and CEO Non-Executive Director Promoter of Angel Group Rich experience of 22+ yrs Veteran in capital markets with over 3 A qualified Chartered Accountant 26+ years of overall experience decades of experi
Slide 41: Experienced Management Team
Experienced Management Team Vinay Agrawal Vineet Agrawal Prabhakar Tiwari Nilesh Gokral Chief Executive Chief Financial Chief Growth Chief Operating Officer Officer Officer Officer Rich experience of 22+ yrs, of 24+ yrs of total experience 18+ yrs of total experience, ~2 18+ yrs of total experience,
Slide 42: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Customer Service ‘Trendsetter’ Award at Gold in BFSI Category by Effectiveness by ACEF 9th NetApp - Innovations Buzzin Content Global Customer Award, 2019 Engagement Awards 2020 PR Awards 2020 for Digital First Organization Best Performing Reta
Slide 43: Consistently Certified By The Great Place To Work
Consistently Certified By The Great Place To Work Certified By The Great Place To Work Institute For Four Consecutive Years 2017 2018 2019 2020 2021 Certified “India’s 20 Best Workplaces in BFSI – 2019” by Great Place To Work Overall culture score at par with top 50 companies in India Top 150 employ
Slide 44: Thank You
Thank You Company : Investor Relations Advisors : Angel Broking Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – U67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Email Id – hitul.gutka@angelbroking.com shogun.jain@sgapl.net / shrikant.s