Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q2 FY25 Earnings Presentation
56 slides from Nuvama Wealth Management's earnings presentation, Nov 4, 2024
Slide 1: Exchange filing cover letter
NWML/SEC/2025/103 November 4, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 001. Mumbai
Slide 2: Nuvama Investor Presentation Q2 FY25
NUVAMA Investor Presentation Q2 FY25 1
Slide 3: Contents
Contents 1 2 3 4 About Us Industry Performance Strategy Landscape Overview 2
Slide 4: 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 5: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ US $ 52.8 Billion 3,300+ employees across 100+ offices 1,300+ RMs Strong Governance Unique Proposition Experienced board and Multi Clie
Slide 6: 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 ~USD 55B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 3 ~USD 55B 8 780+
Slide 7: Comprehensive wealth management platform with exhaustive suite of offerings
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 8: 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 9: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Only scaled player in both client Culture Client segments with “Full Platform” capabilities Established UHNI and Wealth Managers High Family Boutique Offices Private Banks High Orientation RM / Client Networth & Domestic Banks Affluent Individuals Fintec
Slide 10: Established wealth manager covering client segments constituting majority of wealth
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 11: Unique business model enabling seamless client solutioning
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 10
Slide 12: A high growth company with diversified and superior quality of earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Revenue All figures are in US $ Mn % are YoY +31% 247 +19% 189 +32% 142 Wealth & Asset 158 122 Management leading the 120 90 growth 58 57 47 40 40 39 20 20 19 8 8 - 2 FY21 FY22 FY23 FY24 1 Wealth Management Asset Management Asse
Slide 13: Focused execution delivering strong and sustainable outcomes
Focused execution delivering STRONG AND SUSTAINABLE OUTCOMES All figures are in US $ Mn CLIENT ASSETS REVENUES 3Y CAGR 53% 3Y CAGR 30% 41,432 52,847 27% 247 55% 189 34,644 158 169 25,508 27,674 120 109 18,999 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OPERATING PAT COST
Slide 14: 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 15: Wealth management in India is nascent and 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 ~3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India Ma
Slide 16: Investment asset class growing fast driven by value migration
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 19% 16% 116% AIF 61% 1% 13% Insurance 12% 3% 11% India to become the 4th largest private wealth market globally by 2028 15
Slide 17: Making this 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 18: Contents Summary
Contents Summary ▪ Revenues: Q2 FY25 stood at US $ 89 Mn, grew by 50% YoY and H1 FY25 at US $ 169 Mn, grew by 55% YoY 1. ABOUT US ▪ Operating PAT: Q2 FY25 stood at US $ 31 Mn, grew by 77% YoY and H1 FY25 at US $ 57 Mn, grew by 100% YoY 2. INDUSTRY LANDSCAPE ▪ Wealth and Asset Management businesses c
Slide 19: Achieved new milestones
client assets or, $5 one? Ole wr ot A oth client assets Ge 105s > eO wy ae oN , client assets Cros 5 > es ement A UM CrOsse,
Slide 20: Consolidated Performance Q2 FY25
Consolidated Performance Q2 FY25 19
Slide 21: Business Summary: Q2 FY25
Business Summary: Q2 FY25 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 4,050+ 1,300+ US $ 36,625 Mn Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange Trade
Slide 22: Business Summary: Q2 and H1 FY25
Business Summary: Q2 and H1 FY25 All figures are in US $ Mn All % are YoY STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES QUARTERLY HALF YEARLY REVENUES COST TO INCOME 89 169 65% 54% 59 109 50% 55% 11% Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 OPERATING PAT RETURN ON EQUITY 31 31.5% 5
Slide 23: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Client Assets: Q2 FY25 stood at US $ 52,847 Mn, grew by 53% YoY o Nuvama Wealth client assets stood at US $ 11,983 Mn, grew by 53% YoY. Q2 MPIS net flows up 127% YoY CLIENT ASSETS o Nuvama Private client assets stood at US $ 24,642 Mn, grew by 35% YoY. ARR assets grew faste
Slide 24: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Total Cost: Q2 FY25 stood at US $ 47 Mn, grew by 30% YoY and H1 FY25 at US $ 92 Mn, grew by 29% YoY o Staff costs: US $ 36 Mn in Q2, grew by 41% YoY and H1 FY25 at US $ 69 Mn, grew by 37% YoY COST • Added 350 wealth RMs in last 12 months, aligned with our strategy to scale
Slide 25: Consolidated Performance: Q2 FY25
Consolidated Performance: Q2 FY25 Particulars – All figures are in US $ Mn Q1 FY25 Q2 FY25 Q2 FY24 YoY H1 FY24 H1 FY25 YoY Total Revenue 1 80 89 59 50% 109 169 55% Wealth Management 38 42 34 24% 66 80 21% Asset Management 2 2 2 45% 2 4 4 34% 2 Capital Markets 40 45 23 98% 38 85 120% Total Costs 45 4
Slide 26: Capital Management Strategy
Capital Management Strategy: Focused on driving growth & creating long-term shareholder value CAPITAL MANAGEMENT PRINCIPLES IMPROVING SHAREHOLDER RETURNS DIVIDEND 1. Disciplined capital management Return on Equity (RoE) to maximize profitability and RoE 31.5% 2. Investments to drive organic 23.6% bu
Slide 27: Segmental Summary: Q2 FY25
Segmental Summary: Q2 FY25 Wealth Management Asset Management Capital Markets 26
Slide 28: Nuvama Wealth
Nuvama Wealth One of the leading wealth managers in Affluent and HNI client segments Well scaled Wide presence across India US $ 11,983 Mn of client assets 1,200+ RMs and ~7,000 Active External Wealth Managers (EWM) ~1.2 million clients. ~20% serviced by RMs & External Wealth Managers Covering 450+
Slide 29: 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 30: Nuvama Wealth: Leveraging technology as a key enabler
Nuvama Wealth: Leveraging technology as a key enabler Single platform for all stakeholders (Client, RM, EWMs) One catering to all wealth management needs Platform Powered by AI, ML and data analytics to drive efficiency and enhance customer experience Onboarding CRM & Sales Portfolio Transactions &
Slide 31: Nuvama Wealth: Journey over years
Nuvama Wealth: Journey over years All figures are in US $ Mn CLIENT ASSETS REVENUES 3Y CAGR 53% 3Y CAGR 80 33% 11,983 35% 69 24% 9,333 7,833 49 47 6,094 6,296 38 33 3,954 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OPERATING PBT COST TO INCOME 3Y CAGR 28 106% 21 17% 25% 1
Slide 32: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn and YoY) By Solutions By Channel MPIS NII Relationship Manager +24% Brokerage Others External Wealth Manager +17% 47 16 48% 41% 14 38 73% 71% +20% +25% 9 24 27% 7 26% 20 17% 21% 27% 29% 9%
Slide 33: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition (US $ Mn) MPIS Net New Money (US $ Mn and YoY) MPIS Loan Broking Others +35% +53% 11,983 418 2,370 3,291 +39% 343 309 7,833 396 4,953 8,213 114 136 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 1.0
Slide 34: Nuvama Private
Nuvama Private Amongst top 2 independent private wealth players Well scaled High-quality team US $ 24,642 Mn of client assets 127 relationship managers 4,050+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score of 65 Family Office |
Slide 35: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings (A) (B) (C) (D) CLIENT PROFILE Bespoke Solution Investment Advisory Managed Accounts Wealth Structuring Suite Investment Policy Institutionalized Portfolio Holding Str
Slide 36: Nuvama Private: Journey over years
Nuvama Private : Journey over years All figures are in US $ Mn CLIENT ASSETS REVENUES 3Y CAGR 3Y CAGR 35% 20% 24,642 35% 53 62 20,348 18,188 41 16% 14,316 15,496 33 11,805 25 28 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OPERATING PBT COST TO INCOME 3Y CAGR 79% 19 22 21%
Slide 37: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn And YoY) From ARR Earning Assets +16% From Transactional Assets +16% 33 11 28 9 +22% 59% 60% +25% 17 6 14 5 41% 40% Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Q2 FY24 Q2 FY25 H1 FY24
Slide 38: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition (US $ Mn) 1 Net New Money (US $ Mn and YoY) 1 ARR Earning Assets Transactional Assets +50% +35% 851 24,642 3,585 4,875 +36% 566 18,188 11,707 16,867 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 0
Slide 39: Nuvama Asset Management
Nuvama Asset Management Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of US $ 1,232 Mn Private Markets + Public Markets + Commercial Real Estate 79% of this being fee paying High-Quality Investment Team Strong Distribution 20+ investment
Slide 40: 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 41: Nuvama Asset Management: Journey over years
Nuvama Asset Management: Journey over years All figures are in US $ Mn ASSETS UNDER MANAGEMENT REVENUES EX-CARRY 2Y CAGR 67% 2Y CAGR 34% 59% 1,232 6 34% 834 4 740 4 668 3 462 2 FY22 FY23 FY24 H1 FY24 H1 FY25 FY22 FY23 FY24 H1 FY24 H1 FY25 FEE PAYING AUM NO OF STRATEGIES 2Y CAGR 77% 3 35% 972 7 8 658
Slide 42: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Revenue ex-carry (US $ Mn and YoY) Client Assets (US $ Mn and YoY) Fee Paying Client Assets (US $ Mn and YoY) +67% +34% +77% 1,232 4 972 +45% 3 740 2 548 1 Yield on Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 average fee-paying 0.99% 0
Slide 43: Nuvama Capital Markets: Journey over years
Nuvama Capital Markets: Journey over years All figures are in US $ Mn CLIENT ASSETS – ASSET SERVICES REVENUES – ASSET SERVICES 3Y CAGR 90% 3Y CAGR 14,990 130% 50% 10,917 25% 39 34 7,884 20 20 19 4,636 5,213 15 3,240 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 REVENUES – I
Slide 44: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn and YoY) +120% Asset Services 85 Institutional Equities and Investment Banking 247% 51 +98% 39% 40% 158% 45 28 38 23 15 61% 60% 11 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25
Slide 45: We are doing it right! Awards and recognitions
WE ARE DOING IT RIGHT! Building Wealth, Garnering Accolades o Outstanding Wealth Management Technology Initiative – Back Office by Private Banker International Global Wealth Awards, 2024 o Highly Commended Achievement- Outstanding Private Bank for UHNW Clients by Private Banker International Global
Slide 46: 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 45
Slide 47: 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 ~USD 55 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehensive
Slide 48: 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 47
Slide 49: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sept’23 In 5 years grow Building entire Leverage tech to Continue journey Expand to NRI client ecosystem with optimize cost-to- from product to segment and clients and client People at center. serve, improve portfolio so
Slide 50: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sept’23 In 5 years grow Build full suite of Continue to scale public Expand AUM to 6-8x or Significantly alternatives market strategies Distribution 52% CAGR Scale Asset Management Sept’24 On-going On-going Nuvama Privat
Slide 51: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sep’23 In 5 years grow Asset Services clients assets to International Institutional Domestic Institutional Enterprise (Technology 2-2.5x or 20% Grow assets Client Group Client Group (AIF, PMS) and Operations) CAGR under
Slide 52: ESG initiatives: Updates until Q2 FY25
We continue to make progress through ESG initiatives: Updates until Q2 FY25 Environment Social Governance o US GBC Gold certified head office for o ISO 27001 for information security o Published first BRSR report for FY24 interior designing management system o Aligning our approach towards ESG and o
Slide 53: Annexures
INalatsy.lisys “a nuvama
Slide 54: Annexure 1: Our Board
Annexure 1: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nominee Direc
Slide 55: 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, associate companies and joint
Slide 56: 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 FY25 Earnings Presentation on 6ix