Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q2 FY24 Earnings Presentation
54 slides from Nuvama Wealth Management's earnings presentation, Oct 27, 2023
Slide 1: Stock exchange cover letter: Earnings Release & Investor Presentation
NWML/SEC/2024/31 October 27, 2023 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Dalal Exchange Plaza, 5 Floor, Plot C/1, G Block, Bandra - Street, Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 0
Slide 2: Earnings Release: Q2 FY24 Results
Annexure 1 Earnings Release For Immediate Publication Nuvama Wealth Management Limited Announces Q2 FY24 Results, Showing Strong Year-over-Year Growth of 57% in Operating PAT Mumbai, 27th October 2023: Nuvama Wealth Management Limited (NSE, BSE: NUVAMA), one of India’s leading Wealth Management comp
Slide 3: CEO commentary and key highlights
Speaking on the occasion, Ashish Kehair, MD & CEO of Nuvama Group, expressed, “It has been a challenging time globally these past 6 to 9 months - The fallout of Silicon Valley bank, followed by rising bond yields owing to fiscal deficit concerns in the US and persistent weakness in China’s economic
Slide 4: Asset Management and Capital Markets highlights
2. Asset Management a. Revenues: ₹19 Cr in Q2 FY24, management fee grew by 17% YoY and ₹32 Cr in H1 FY24, management fee grew by 42% YoY b. Client Assets: ₹6,175 Cr as at end of Q2 FY24, grew by 43% YoY. Includes Private Markets, Long Only and Hedge Fund strategies. Undrawn commitments of ~₹1,600 Cr
Slide 5: Nuvama Q2 FY24
Annexure 2 NUVAMA Investor Presentation Q2 FY24 1
Slide 6: Contents
Contents 1 2 3 4 About Us Industry Landscape Performance Overview Strategy 2
Slide 7: Contents Summary
Contents Summary ▪ Strong institutional ownership: PAG (promoter of company), 1. ABOUT US one of the largest Asia-based alternative investment managers ▪ Integrated wealth management platform with exhaustive 2. INDUSTRY suite of offerings LANDSCAPE ▪ Only established player with proven execution acr
Slide 8: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ ₹ 2.9 trillion 2,700+ employees across 90+ offices ~1,000 RMs Strong Governance Unique Proposition Experienced board and Multi Client S
Slide 9: Majority owned by PAG, a leading investment firm
Majority owned by PAG (promoter of company) a LEADING INVESTMENT FIRM One of the largest Asia-based alternative investment managers with over USD50B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees USD50B+ 10 600+
Slide 10: Comprehensive wealth management platform
COMPREHENSIVE WEALTH MANAGEMENT PLATFORM with exhaustive suite of offerings Our vision is to provide our clients with comprehensive and tailored wealth management solutions and advice We Serve We Provide Access To 1. Products 2. Advisory 3. Capital Markets UHNI and Family Offices Third Party Proprie
Slide 11: Evolved into an integrated wealth management platform
Evolved from individual businesses into an INTEGRATED WEALTH MANAGEMENT PLATFORM 4. Listed, Strong Governance Company to 3. Transitioned Smoothly, Deliver Long-term Value Operating with Independent with PAG as the Promoter 2. Global Partnership Board, Governance, Operations Validating Platform and M
Slide 12: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Culture Client Established Wealth Managers UHNI and High Family Boutique Offices Private Banks High Orientation RM / Client Networth & Only scaled player in both client Domestic Banks Affluent Individuals segments with “Full Platform” capabilities Fintec
Slide 13: Established wealth manager covering client segments
As an ESTABLISHED WEALTH MANAGER, we cover client segments constituting majority of wealth ~35K 70-75% UHNI Households of total financial ~30 lacs HNI & AFFLUENT wealth Households MASS MARKET RETAIL 9
Slide 14: A high growth company with diversified earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Diversified Revenue Streams Revenue Across Synergistic Segments Wealth & Asset ₹ 1,575 ₹ 1,016 Management ₹ 1,322 +19% leading the ₹ 750 +32% growth ₹ 998 ₹ 484 ₹ 389 ₹ 336 ₹ 331 ₹ 167 ₹ 171 ₹ 158 ₹ 20 ₹ 68 - FY21 FY22 FY23 FY21
Slide 15: Unique business model across ecosystem
UNIQUE BUSINESS MODEL, enabling value and seamless client solutioning across ecosystem Small & Medium UHNI Business Owners Family Offices & Business Owners HNI Advisory & Unique Research Products Referrals & Client Distribution Insights Corporates Affluent & Institutions Individuals ONE NUVAMA 11
Slide 16: Contents Summary
Contents Summary ▪ India's financial services sector has secular tailwinds 1. ABOUT US o Financial wealth would continue to grow rapidly o Investment asset class will grow even faster 2. INDUSTRY LANDSCAPE o Rising formal penetration will multiply the opportunity ▪ Making India’s wealth industry a s
Slide 17: Wealth management in India: a huge opportunity
In India WEALTH management is at a nascent stage and presents a HUGE OPPORTUNITY 1 2 3 GDP Growth Forecast Total Wealth to GDP Ratio (~) Share of Financial Wealth % (~) Globally India Matured Markets India Matured Markets India 2-3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India M
Slide 18: Investment asset class growing fast with long runway
Investment asset class is growing fast driven by VALUE MIGRATION and has a LONG RUNWAY AUM CAGR AUM / Premium to GDP Asset Class Last 10Y India US / Global Mutual Funds 20% 16% 116% AIF 70% 1% 13% Insurance 13% 4% 11% India to become the 4th largest private wealth market globally by 2028 14
Slide 19: A structural and scalable play
Making this a STRUCTURAL and SCALABLE play ▪ Enhanced regulatory focus Consolidation ▪ Technology disruptions ▪ Increasing product complexity Greater ▪ Demographics and rising affluence Growth ▪ Critical to client Attractive ▪ Low capital requirements - High RoE Economics ▪ Concentration of wealth -
Slide 20: Contents Summary
Contents Summary ▪ Revenues: Q2 FY24 stood at ₹ 492 Cr, grew by 29% YoY and 1. ABOUT US H1 FY24 at ₹ 909 Cr, grew by 24% YoY ▪ Operating PAT: Q2 FY24 stood at ₹ 145 Cr, grew by 57% YoY and H1 FY24 at ₹ 240 Cr, grew by 63% YoY. Operating 2. INDUSTRY leverage improving profitability LANDSCAPE ▪ Wealth
Slide 21: Quarterly Performance
Quarterly Performance 7’ nuvama
Slide 22: Business Summary: Q2 and H1 FY24
Business Summary: Q2 and H1 FY24 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,300+ ~1,000 ₹ 2,17,278 Cr Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange
Slide 23: Business Summary: Q2 and H1 FY24
Business Summary: Q2 and H1 FY24 STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES Q2 FY24 H1 FY24 H1 FY24 ₹ 492 29 % ₹ 909 24 % 65% 707 bps Revenue ( Cr and YoY) Revenue ( Cr and YoY) Cost to Income (% and YoY) ₹ 145 57 % ₹ 240 63 % 20.3% 547 bps Operating PAT ( Cr and YoY) Operating PAT ( C
Slide 24: Key Highlights: Q2 and H1 FY24
Key Highlights: Q2 and H1 FY24 ▪ Total Revenues: Q2 FY24 stood at ₹ 492 Cr, grew by 29% YoY and H1 FY24 at ₹ 909 Cr, grew by 24% YoY o Wealth Management: ₹ 281 Cr in Q2, grew by 16% YoY and ₹ 553 Cr in H1, grew by 17% YoY REVENUE o Asset Management1 : ₹ 19 Cr in Q2, grew by 17% YoY and ₹ 32 Cr in H1
Slide 25: Consolidated Performance: Q2 and H1 FY24
Consolidated Performance: Q2 and H1 FY24 Particulars – All figures are in ₹ crores Q2 FY24 Q1 FY24 Q2 FY23 YoY H1 FY24 H1 FY23 YoY Total Revenue 1 492 417 382 29% 909 732 24% Wealth Management 281 272 243 16% 553 473 17% Asset Management 19 13 41 17% 2 32 48 42% 2 Capital Markets 190 131 102 86% 320
Slide 26: Segmental Summary: Q2 and H1 FY24
Segmental Summary: Q2 and H1 FY24 Wealth Management Asset Management Capital Markets 22
Slide 27: Nuvama Wealth: Introduction
Nuvama Wealth: Introduction One of the leading wealth managers in Affluent and HNI client segments Well scaled platform Wide presence across India ₹ ~65,000 Cr of client assets ~900 RMs and ~23,000+ External Wealth Managers (EWM) 1.1+ million clients. ~20% serviced by RMs & External Wealth Managers
Slide 28: Nuvama Wealth: Value Proposition
Nuvama Wealth: Value Proposition 01 Multi-Product and Open Architecture Wide bouquet of investment solutions across asset classes and access to seasoned products Unbiased Solutions 02 Offering unbiased and customized solutions as per client’s needs, portfolio and risk appetite Hybrid Ecosystem 03 Co
Slide 29: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) By Solutions By Channel Relationship Manager +23% MPIS NII Brokerage Others External Wealth Manager +89% 317 115 257 +22% 51% 48% 73% +48% 77% 163 59 61 134 20% 26% 40 21% 17% 23% 27% 8
Slide 30: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition - Solution (%) Net New Money (₹ Cr and YoY) +21% MPIS Loan Broking Others +21% 65,406 3,721 53,836 27% 30% 3,079 5% 5% 67% 63% 1% 1% H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 1.01% 1.05% Yield on
Slide 31: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled platform High-quality team ₹ ~150,000 Cr of client assets 100+ relationship managers 3300+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score
Slide 32: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings CLIENT PROFILE (A) Bespoke Solution (B) Investment Advisory (C) Managed Accounts Suite Investment Policy Statement (IPS) Institutionalized Portfolio Family Offices Fac
Slide 33: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr And YoY) From ARR Earning Assets +9% From Transactional Assets -9% 236 83 216 76 +8% 50% 59% -6% 109 118 41 38 50% 41% Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1
Slide 34: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (%) 1 Net New Money (₹ Cr and YoY) 1 ARR Earning +21% Transactional 1,51,871 6,636 -29% 1,25,907 23% 23% 4,726 77% 77% H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 0.98% 1.02% Yield on average ARR a
Slide 35: Nuvama Asset Management: Introduction
Nuvama Asset Management: Introduction Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of ₹ 6,175 Cr Alternatives + Long Only + Hedge Funds 74% of this being fee paying High-Quality Investment Team Strong Distribution Robust distribution mac
Slide 36: Nuvama Asset Management: Value Proposition
Nuvama Asset Management: Value Proposition 01 Differentiated Solutions Addressing client needs by offering unique products, powered by deep insights from wealth clients Proven Fund Management Capabilities 02 Established track record across public markets and private products. Delivering top quartile
Slide 37: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Revenue (₹ Cr and YoY) Client Assets (₹ Cr and YoY) Fee Paying Client Assets (₹ Cr and YoY) +43% +32% Management Fee Carried Interest 6,175 4,579 3,465 4,311 17 +42% 10 +17% 24 32 11 32 8 8 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Yield on H1 FY23 H1 FY24 H1 FY23
Slide 38: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) Asset Services +51% Institutional Equities and Investment Banking 251% 320 122 442% +86% 30% 39% 90 212 190 102 70% 35 61% 17 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 Q2
Slide 39: Campaign awards
a nuvama Wins 3 Golds for it’s #LetsDoltRight Campaign Platform PITCH BFSI PITCH BFSI CMO MARKETING MARKETING ASIA Best Media Most Effective Best Brand Integration Relaunch Revitalisation Campaign Awards
Slide 40: Historical Trends
Historical Trends 7’ nuvama
Slide 41: Business Summary: Last 3 years
Business Summary: Last 3 years Client Assets - ₹ Cr Revenue - ₹ Cr Operating PAT - ₹ Cr CAGR : +21% CAGR : +26% CAGR : +36% 2,31,000 368 2,13,000 1,575 1,322 292 1,59,000 998 200 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Numbers have been rounded off for presentation purposes 1. Refer Annexure 1
Slide 42: Consolidated Performance: Last 3 years
Consolidated Performance: Last 3 years Particulars – All figures are in ₹ crores FY21 FY22 FY23 FY23 CAGR 2Y Total Revenue 1 998 1,322 1,575 26% Wealth Management 484 750 1,016 45% Asset Management 0 20 68 - Capital Markets 503 559 489 -1% Total Costs 731 930 1,086 22% Employee Cost 472 640 759 27%
Slide 43: Won accolades across credible platforms
Won accolades across credible platforms Select Awards and Recognitions Best Private Best for Bank for Discretionary Best Domestic Best Private Bank Best Private Bank UHNW Clients, Portfolio Private Bank, South Asia Highly Management in India Commended India The Asset Triple A Private Global Private
Slide 44: Contents Summary
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place ▪ Adequately capitalized to achieve future goals 2. INDUSTRY LANDSCAPE ▪ Well defined trajectory for each segment 3. PERFORMANCE OVERVIEW 4. STRATEGY 40
Slide 45: Our strategic advantage
Our STRATEGIC ADVANTAGE Strong promoters with experienced management team PAG, promoter of the company, is a leading investment firm, with AUM of over US $50 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehen
Slide 46: Long-term objectives
LONG-TERM objectives Wealth and Asset Operating leverage to deliver Be client-first in Management to be key drivers significant improvement in cost everything we do and would constitute 75 - 80% to income ratio of the earnings 42
Slide 47: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS Leverage tech to optimize Continue journey from Expand to NRI client cost-to-serve and product to portfolio segment and deepen enhance experience In 5 years grow Grow Wealth solutions existing relationships Cli
Slide 48: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS Build full suite of Continue to scale Expand Significantly Scale alternatives public market Distribution strategies In 5 years grow Asset AUM to 6-8x Management On-going On-going Nuvama Private Equity Long Only
Slide 49: ESG: Let's do it right, for people, planet & prosperity
ESG: Let’s do it right, for people, planet & prosperity Key ESG Highlights for FY 2022-23 Pioneering Sustainability: Our ESG Journey begins Rebranding Rebranding with a ‘customer-centric’ with a ‘customer-centric’ focus focus 2,059 Green tCO2e Building GHG 26% Certification Engaged Engagedaa Big4 Bi
Slide 50: Annexures
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Slide 51: Annexure 1: Bridge to financial statements
Annexure 1: Bridge to financial statements Q2 FY24 Q1 FY24 # Particulars - ₹ cr As per Non- As per Non- Netting Carve In Carve Out Netting Carve In Carve Out Financial recurring Adjusted Financial recurring Adjusted (1) (2) (3) (1) (2) (3) Statements Exp (4) Statements Exp (4) A Revenue 737 -245 - -
Slide 52: Annexure 2: Our Board
Annexure 2: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Aswin Vikram Chairman & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nom
Slide 53: 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 Nuvama Wealth Management Limited or any of its subsidiaries and associate companies (“Nuvam
Slide 54: Thank You
Thank You For more details refer data book published on our website. Click here to access. # Data Book Contents 1 Consolidated Performance 2 Segmental Performance - Wealth Management a) Nuvama Wealth b) Nuvama Private 3 Segmental Performance - Nuvama Asset Management 4 Segmental Performance - Nuvama
Nuvama Wealth Management — Q2 FY24 Earnings Presentation on 6ix