Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (October 2024)
21 slides from Edelweiss Financial Services's investor presentation, October 2024
Slide 1: Strategic Overview on Businesses
Edelweiss Financial Services Limited Strategic Overview on Businesses
Slide 2: Contents
Contents 1 Building Blocks & Future Plans 3 2 Strategic Overview on Businesses 11 2
Slide 3: Building Blocks & Future Plans
Building Blocks & Future Plans 1 Asset Management 2 Insurance 3 Credit 4 Corporate Debt 3
Slide 4: Significant intrinsic value creation in EAAA
1 Significant intrinsic value creation in EAAA INR Cr ARR AUM H1 PAT 44,900 124 32,000 22,000 53 5 Sep 20 Sep 22 Sep 24 Sep 20 Sep 22 Sep 24 20% CAGR 123% CAGR Intrinsic value grew 3x in 5 years; value unlock process in pipeline 4
Slide 5: Mutual Fund – scale up in profitability driven by rising equity AUM
1 Mutual Fund – scale up in profitability driven by rising equity AUM INR Cr AUM H1 PAT 1,40,500 41 92,000 44,000 11 4 Sep 20 Sep 22 Sep 24 Sep 20 Sep 22 Sep 24 34% CAGR 84% CAGR Intrinsic value grew 5x in 5 years; building preparedness for value unlock and listing 5
Slide 6: Insurance businesses on track to breakeven by FY27
2 Insurance businesses on track to breakeven by FY27 INR Cr Capital Infused since Intrinsic Value inception created Sep 20 Sep 22 Sep 24 Zuno General GWP* 100 280 480 ~950 Cr Insurance Intrinsic Value 650 2,250 4,000 *For half year Sep 20 Sep 22 Sep 24 Life Insurance ~2,750 Cr EV 1,255 1,775 2,000 I
Slide 7: Credit businesses – to focus on double digit ROE
3 Credit businesses – to focus on double digit ROE INR Cr Well-capitalized businesses Target double digit …but low ROEs having strong equity… ROE ARC 3,326 11% • Build an asset-light growth platform NBFC 3,319 2% • Scale with tech-driven co-lending • Enhance productivity Nido 813 1% and efficiency T
Slide 8: Reduction in consol net debt
4 Reduction in consol net debt INR Cr 70% 40,000 18,400 11,810 Mar 19 Mar 22 Sep 24 Reduced by ~INR 28,000 Cr in last 5 years 8
Slide 9: Next steps on debt reduction
4 Next steps on debt reduction Consol Net Debt INR 11,810 Cr Business Corporate INR 6,330 Cr INR 5,480 Cr • Businesses well capitalized Focus on corporate net debt reduction • Self-sufficient ALM 9
Slide 10: Corporate net debt to be reduced through stake sales
4 Corporate net debt to be reduced through stake sales INR Cr EAAA Mutual Fund 5,480 4,300 3,200 Sep 24 Sep 25E Sep 26E 10
Slide 11: Strategic Overview on Businesses
Strategic Overview on Businesses
Slide 12: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses INR Cr Edelweiss Financial Services Ltd Equity EFSL Stake H1 PAT EAAA 869 100% 124 Mutual Fund 243 100% 41 Asset Reconstruction 3,326 60% 176 NBFC 3,319 100% 37 Nido Home Finance 813 100% 3 Zuno General Insurance 304 100% (21) Life Insurance 825 78% (10
Slide 13: EAAA
EAAA Pioneered into alternatives with the first private credit fund in 2010 AUM 24% INR 57,250 Cr CAGR One of the leading Private Credit and Real Assets managers in India 3,500+ Unique LPs across India, North America & EMEA, with ~750 repeat PAT 69% clients; ~50% of AUM from offshore clients INR 243
Slide 14: Mutual Fund
Mutual Fund Amongst the fastest growing AMCs, 13th largest in the country AUM 43% INR 1,40,500 Cr CAGR Market leader in debt passives and amongst the top 10 AMCs in fixed income segment Equity AUM 63% INR 59,200 Cr CAGR Dedicated senior team exclusively focused on Factor Investing, with a track reco
Slide 15: Asset Reconstruction
Asset Reconstruction Dominant player with ~25% market share, primarily focused on ‘Revival’/‘Reconstruction’ of assets Cumulative Recoveries of INR 55,000 Cr over Deeply cyclical business, with double-digit ROE during cycles of high last 8 years stressed assets and the next 4-5 years of single-digit
Slide 16: NBFC
NBFC Historically focused on wholesale lending, pivot to asset-light SME lending Ongoing CLM partnership with Central Bank of India, IDFC First and Standard Chartered Building an asset-light, retail credit portfolio through partnerships with financial institutions Wholesale Book 70% ~75% of retail d
Slide 17: Nido Home Finance
Nido Home Finance Affordable housing finance player with a granular portfolio predominantly consisting of retail home loans Ongoing CLM partnership with Targeting low-income, new to credit and informal-income customer BOB, SBI, Standard Chartered segments and UCO Bank Focus on capital efficient, ass
Slide 18: Zuno General Insurance
Zuno General Insurance One of the fastest growing InsurTech in the industry, with robust tech architecture built for agility, scalability and efficiency, focusing on Motor and Health segments GWP 50% Differentiated approach with focus on Innovation, Efficient Operating INR 988 Cr^ CAGR Model & Custo
Slide 19: Life Insurance
Life Insurance One of the youngest life insurers with strategic focus on 3 pillars - Quality, Efficiency and Customer Centricity Gross Premium 15% Built scale over the years through a well-balanced, multi-channel INR 1,983 Cr^ CAGR distribution approach Transformed tech ecosystem with cloud and anal
Slide 20: 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
Slide 21: Safe Harbour
Safe Harbour Slide 4,5,6: Intrinsic Value Numbers are indicative and based on management estimates Slide 4: ARR AUM is the sum of NAV of the live funds and balance Callable Capital from the live funds. Prior period numbers are indicative and based on management estimates Slide 5,14: AUM, MF Equity A
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