Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (May 2023)
20 slides from Edelweiss Financial Services's investor presentation, May 26, 2023
Slide 1: Cover letter to stock exchanges: Strategic Update on Demerger of Nuvama
EW/Sec/2023-24/55 May 26, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Strategic Update on Demerger of Nuvama W
Slide 2: Strategic update: Demerger of Nuvama Wealth Management
US $ version Strategic update Demerger of Nuvama Wealth Management
Slide 3: Contents
Contents 1 Nuvama Demerger: Rationale and Update Slide 3 - 7 2 Nuvama: Quality business, poised for growth Slide 8 - 13 3 Edelweiss: Creating and unlocking value Slide 14- 18 2
Slide 4: Contents
Contents 1 Nuvama Demerger: Rationale and Update Slide 3 - 7 • Why the Demerger? • What were the steps of the demerger? • Where are we now and next steps? 2 Nuvama: Quality business, poised for growth Slide 8 - 13 3 Edelweiss: Creating and unlocking value Slide 14- 18 3
Slide 5: Why the Demerger? A win-win-win for all stakeholders
Why the Demerger? A win-win-win for all stakeholders For Nuvama • Deal led to primary infusion of capital into the business • Nuvama is now an independent business with a focused strategy and the flexibility to attract business-specific partners and investors • Paved the way for listing of Nuvama Fo
Slide 6: What were the steps?
What were the steps? Step 1 – Capital Raise Step 2 - Demerger Step 3 - Allotment Step 4 - Listing Phase I Phase II & III Allotment Listing Capital raise in NCLT order received and Allot 30% EFSL holdings Listing of Nuvama Nuvama made effective for Phase II to Shareholders of Wealth Management demerg
Slide 7: What is the current status and next steps?
What is the current status and next steps? Step 1 – Capital Raise Step 2 - Demerger Step 3 - Allotment Step 4 - Listing Phase I Phase II & III Allotment Listing Completed Completed June 10, 2023 By Jul / Aug 2023 6
Slide 8: Nuvama's shareholding post demerger
Nuvama’s shareholding post demerger 14 30 Edelweiss PAG % Shareholding Shareholders of Edelweiss 56 7
Slide 9: Contents
Contents 1 Nuvama Demerger: Rationale and Update Slide 3 - 7 2 Nuvama: Quality Business poised for growth Slide 8 - 13 • Nuvama: an integrated and differentiated Wealth Management Platform • Well scaled with a history of strong performance • Operating in a high opportunity segment with headway for g
Slide 10: Nuvama Wealth Management (Formerly Edelweiss Wealth Management)
Nuvama Wealth Management (Formerly Edelweiss Wealth Management) An integrated and differentiated Wealth Management Platform Only established player straddling across Affluent to UHNI client segments, constituting 80% of market wealth A high growth company with diversified and superior quality of ear
Slide 11: Well scaled with robust performance across key metrics
Well scaled with robust performance across key metrics $275 Mn $37 Mn Net Worth Profit after Tax * (FV $0.12) $8 $1 Book Value Diluted Earnings per Share per Share 10 * Operating PAT including demerged businesses and excluding non-recurring demerger expenses is $45 Mn
Slide 12: Healthy growth over the last 2 years
Healthy growth over the last 2 years CAGR of 26% CAGR of 21% CAGR of 14% Net Revenue Client Assets Client Reach $ Mn $ Mn # 183 27,391 11,00,000 8,50,000 18,853 115 Mar 21 Mar 23 Mar 21 Mar 23 Mar 21 Mar 23 11
Slide 13: Operating in a high growth opportunity segment
Operating in a high growth opportunity segment India’s Wealth Management opportunity Financial wealth would continue to grow rapidly Wealth will grow to reach $9.7 tn by 2025 (11% CAGR - o Bank deposits have doubled every ~4.5 years over last 2 decades 10 years) Investment asset class will gro
Slide 14: Poised for the growth ahead
Poised for the growth ahead Demonstrated • Net Revenue grew 1.6x over the past 2 years Performance • Client Assets grew 1.5x over the past 2 years Well • Net Revenue of $183 Mn Scaled • Client Assets of $27,391 Mn Large • India to be the 4th largest private wealth market globally by 2028 Opportunity
Slide 15: Contents
Contents 1 Nuvama Demerger: Rationale and Update Slide 3 - 7 2 Nuvama: Quality business, poised for growth Slide 8 - 13 3 Edelweiss: Creating and unlocking value Slide 14- 18 • Edelweiss post the demerger o Key financial metrics o Structure with portfolio of businesses • Growth over the last 4 years
Slide 16: Edelweiss Post Demerger: Changes in key metrics
Edelweiss Post Demerger: Changes in key metrics Previously Now Next quarter Metric Pre Demerger Post Demerger Post Allotment Net Worth $1,034 Mn $1,034 Mn $748 Mn Book Value per Share $0.88 $0.88 $0.56 Nuvama’s contribution in EFSL PAT 22% - - 15 * PAT refers to post MI ex-Insurance PAT
Slide 17: Continues to hold a portfolio of high-quality businesses
Continues to hold a portfolio of 7 high-quality businesses Edelweiss Financial Services Ltd For year ended Mar 23 EFSL Stake Equity PAT Alternative Asset Mgt 100% $75 Mn $19 Mn Asset Management Mutual 100% $24 Mn $2 Mn Fund Asset Reconstruction 60% $340 Mn $39 Mn NBFC 100% $470 Mn $17 Mn Credit Hous
Slide 18: With significant growth over the years
With significant growth over the years FY19 FY23 Alternative AUM ($ Mn) 1,460 5,656 Asset Mgt Mutual Fund AUM ($ Mn) 2,129 12,771 Asset Recoveries ($ Mn) 404 916 Reconstruction NBFC Capital Adequacy (%) 20.3 34.3 HFC Capital Adequacy (%) 21.4 32.1 General Gross Written Premium ($ Mn) 13 67 Insurance
Slide 19: Going ahead, Edelweiss will continue to
Going ahead, Edelweiss will continue to Create • Grow and enhance value in the underlying businesses Value Unlock • Unlock value at opportune times to create a win-win for business and all stakeholders Value Be Financially • Be financially strong and resilient by holding comfortable liquidity and re
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
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