Angel One Limited · NSE:ANGELONE
Angel One — Q2 FY22 Earnings Presentation
45 slides from Angel One's earnings presentation, Oct 20, 2021
Slide 1: Exchange covering letter for investor presentation
t~ AngelOne To, Listing Department Depa r·tment of Corporate Service National Stock Exchange of Indi a Limited SSE Lim ited Exchange Pl aza, C-1, G Block, Phiroze jeejeebhoy Towers, Sand ra Kurla Com plex, Dalal Street, Sand ra (East), Mumbai - 400 051. Mumbai - 400 001. Symbol: ANGELBRKG Scrip Code
Slide 2: Q2 '22 Investor Presentation
..~ Angelone Q2 ‘22 Investor Presentation
Slide 3: Disclaimer
Disclaimer ~~ AngelOne This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel One Limited (the “Company”) (formerly known as Angel Broking Limited), have been prepared solely for information purposes and do not constitute any offer, recommendation or in
Slide 4: Digitalization: A Key Driver
Digitalization: A Key Driver ~~ AngelOne • • • •--- • Clients’ Choice For Seamless Digital Access To Markets Using Digital Proprietary Digital Properties Experience Platforms Equity Commodity Currency Lending MFs Insurance Bonds Gold Superior Product & Service Offerings Trusted Brand With Growing Cl
Slide 5: Q2 '22: Largest Listed Broking House In India
Q2 ‘22: Largest Listed Broking House In India ~~ AngelOne • Angel One _I_ _ Limited_H_ CTO with _ Global _ Experience _H_ Digital _ Talent_ Acquisition AMC Business _H_ _ __ • Jyotiswarup Raiturkar A AngelOne 11 Application in process with SEBI for 20+ years of experience in building Digital First &
Slide 6: Angel Broking Is Now Angel One
Angel Broking Is Now Angel One ~~ AngelOne __._ Angel Broking® T ~ AngelOne 1996 – 2021 2021 Onwards \ Single Product Stock Broking as a predominant line of business A. One Solution Wealth Creation Throughout Lifespan \ Formal For Seasoned Investors and Traders A. Youthfulness New Age Client
Slide 7: Product & Technology Focus To Drive Future Growth
Product & Technology Focus To Drive Future Growth ~~ AngelOne Chief Technology Officer Striving to achieve leadership position by enhancing client experience • 20+ years of experience • Worked at Walmart Labs’, Microsoft, Goibibo, Intuit, Samsung Tech & Product Hub being set up in Bengaluru Research
Slide 8: Digital First Approach
.v~ Angel O Digital First Approach
Slide 9: Using Technology To Provide Best Experience To Clients
Using Technology To Provide Best Experience To Clients ~~ AngelOne 100% 99% 75%+ Digital Acquisition of Direct Clients Orders Executed Online By Direct Clients Orders Placed through Mobile App Digital Properties Built In-house For Diverse And Growing Client Base Created An Open Architecture To Seaml
Slide 10: End-To-End And Advanced Digital Experience
End-To-End And Advanced Digital Experience ~~ AngelOne I I I Artificial Intelligence And Machine Learning Driven Client Engagement And Services I I I Data science driven approach to micro-target diverse audience segments I Activations I I I I I I @ I I I Machine Learning Predictive & Classification
Slide 11: Best In Class Product Suite
Best In Class Product Suite ~~ AngelOne Seamless Experience Across Digital Platforms At Most Competitive Price Machine learning based advisory, ARQ Angel One Mobile Straight through process for client on-boarding ₹0 Angel One Web App within minutes 11!!1111!1!!1!1 App in 6 languages for New Bharat F
Slide 12: Launched Insta Trade, An Innovative Way To Trade Options
Leading Innovation: Launched Insta Trade, An Innovative Way To Trade Options ~~ AngelOne Insta Trade: Angel One’s Latest Product Innovation f- lnsta Trade G) Q (!] []- P&L. C Simplified & Effortless Options Trading IBANKNIFTY I Watchllst Orders 20.15 "~ ,n, ~ 4h ~o + Indicators ~ Te, NI FTY 240 NSE
Slide 13: Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ
Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ ~~ AngelOne I I ~------------ I I I I : .\~ Provides equity investment advisory services ~ Alpha-generating algorithms based on multiple fundamental and quantitative : I ARQ I : .\~ I Provides superior risk-adjusted returns factors
Slide 14: Competitive Product And Service Offering To Meet Holistic Financial Needs
Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients ~~ AngelOne Free Research & Advisory Fundamental | Technical | ARQ Advisory at no additional charge ₹ Margin Trade Funding Seamless, Real-time limits, basis MTM collaterals Securities as collateral F&O trading possi
Slide 15: Huge Untapped Potential
.v~ Angel O Huge Untapped Potential
Slide 16: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market ~~ AngelOne Rising Penetration Of Demat Accounts In India Steady Growth In Demat Accounts In India (Mn) 15.2% CAGR Inflection Point 5.1% 70 4.1% 55 3.1% 2.7% 41 2.1% 2.4% 32 36 1.7% 1.7% 1.8% 2.0% 25 28 21 22 23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 H1 FY
Slide 17: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition ~~ AngelOne Top 5 Digital Brokers Constitute 54% In Cumulative NSE Active Clients Base (Mn) ■ Top 5 Digital Brokers* ■ Others Cumulative: 26.5 2.9x Growth 22.4 18.9 16.0 12.1 14.2 10.7 10.8 12.2 9.0 9.6 9.9 8.6 9.0 8.1 14.4 Top 5 Digital Brokers: 7.0 7.2 7.8 11.
Slide 18: Digital Business Driving Exponential Growth For Angel
.v~ Angel O Digital Business Driving Exponential Growth For Angel
Slide 19: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base ~~ AngelOne Expanding Market Share In NSE Active Client Base 8.8% 9.3% 1.9x Expansion In 8.3% 7.6% Market Share 7.1% 6.3% 4.9% 5.3% 4.8% Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Angel’s NSE Active Client Base (Mn) & Rank DDDD
Slide 20: Large Expansion In Retail ADTO Market Share Across Segments
Leading To Large Expansion In Retail ADTO Market Share Across Segments ~~ AngelOne Overall Equity Market Share (%) 20.8% 22.7% 21.2% 16.1% 12.3% 5.9% 6.9% 8.2% 4.5x Growth 4.7% Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 F&O Market Share (%) 20.9% 22.9% 21.3% 16.1% 12.1% 6.7% 7.8%
Slide 21: Digital Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities ~~ AngelOne >93% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q2 ’22 (‘000) 1,277 1,204 82 79 Tier 1: 5.9x Growth 956 61 376 455 Tier 2: 10.7x Growth 550 511 349 48 39 347 231 37 197 188 746 743 Tier 3: 11.7x Growth
Slide 22: Digital Transformation Driving Strong Client Acquisition
Digital Transformation Driving Strong Client Acquisition ~~ AngelOne 92% Of Gross Clients Added Under Flat Fee Plan 7% 8% Traditional Plan 19% 20% 19% 10% 10% 10% 10% (Driven by AP network) 90% 90% 90% 90% 93% 92% 81% 80% 81% Flat Fee Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Gr
Slide 23: Digital Business Drives Multifold Increase In ADTO Across Segments
Digital Business Drives Multifold Increase In ADTO Across Segments ~~ AngelOne Flat Fee Dominates Overall ADTO 5% Traditional Plan 16% 17% 7% 8% 27% 27% (Driven by AP network) 40% 54% 93% 92% 95% Flat Fee 73% 73% 84% 83% 60% 46% Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Strong G
Slide 24: Strong Growth In Client Activity Across Segments
Strong Growth In Client Activity Across Segments ~~ AngelOne Growth In Cash Segment Growth In F&O Segment Growth In Commodity Segment 80 70 - Cash ADTO (₹ Bn) 98 103 No. Of Trades (Mn) 105 111 113 120 6,000 - F&O ADTO (₹ Bn) No. Of Trades (Mn) 169 180 80 160 70 - Commodity ADTO (₹ Bn) 8 No. Of Trade
Slide 25: Financial Highlights
.v~ Angel O Financial Highlights
Slide 26: Q2 '22: Key Highlights
Q2 ‘22: Key Highlights ~~ AngelOne 23% 27% 16% ₹ 15,252 mn Average Client Funding Book for QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover QoQ Growth in Number of Trades Q2’ 22 ₹ 5,382 mn ₹ 1,839 mn ₹ 1,794 mn ₹ 1,343 mn 13.4% QoQ Growth in Gross Revenues 10.6% QoQ Growth in EBDAT
Slide 27: Impact Of New Margin Regulations
Impact Of New Margin Regulations ~~ AngelOne Implementation Timeline Average Monthly Net Broking Income % of Peak (₹ Mn) Phases Implementation 834 Margin 771 685 • Moderate impact of phase 4 of new margin 596 Phase I 25% Dec’20 – Feb’21 434 443 regulations on net broking income 339 Phase II 50% Mar’
Slide 28: MTF Book Spread Over Wide Customer Base
MTF Book Spread Over Wide Customer Base ~~ AngelOne MTF Book Size Low Per Client Exposure MTF Book Segmentation (₹ Mn) (₹) ■ <₹ 0.1mn ■ ₹ 0.1-0.5mn >₹ 0.5mn 16,289 72,507 2.0% 2.6% 2.9% 66,233 6.6% 6.9% 7.1% 13,945 50,703 91.4% 90.4% 90.0% 5,698 Q2 '21 Q1 '22 Q2 '22 Q2 '21 Q1 '22 Q2 '22 Q2 '21 Q1 '2
Slide 29: Segmental Revenue Break Up
Segmental Revenue Break Up ~~ AngelOne Gross Revenue Mix ■ Gross Broking ■ Interest □ Depository ■ Distribution ■ Other 4% 4% 4% 4% 5% 9% 9% 8% 10% 1% 1% 2% 1% 1% 1% 1% 2% 5% 1% 4% 22% 20% 5% 16% 7% 7% 7% 6% 6% 6% 24% 17% 14% 15% 15% 17% 66% 69% 69% 72% 70% 70% 68% 68% 67% Q2 '20 Q3 '20 Q4 '20 Q1 '2
Slide 30: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix ~~ AngelOne (₹ Mn) Age-wise Net Broking Revenue Split (5.2mn clients added since July’19) ■ <2 years ■ 2-5 years □ >5 years 2,312 2,055 221 1,788 200 182 364 1,303 1,329 343 Digitization 1,016 170 151 321 journey started 646 700 755 150 276 260 in April 2019, is
Slide 31: Rapidly Growing Digital Business Contributes To Majority Of Net Revenue
Rapidly Growing Digital Business Contributes To Majority Of Net Revenue ~~ AngelOne Declining Contribution Of Traditional Plan Net Broking Revenue, In Total Net Revenue (Traditional Plan Net Broking Revenue / Total Net Revenue) 45% 42% 35% 33% 28% 22% 17% 15% 12% Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q
Slide 32: Technology Adoption: Enhancing Quality And Scalability
Technology Adoption: Enhancing Quality And Scalability ~~ AngelOne Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 3,367 603 3,146 567 2,839 2,733 2,787 2,908 2,503 2,401 2,470 496 450 369 388 335 330 343 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '20 Q3 '20 Q
Slide 33: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits ~~ AngelOne Consolidated EBDAT Consolidated EBDAT Margin (₹ Mn) 5.4x 49% 49% 49% 49% 47% 43% 1,839 39% 1,663 36% 1,463 30% 1,043 1,093 696 421 492 340 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21
Slide 34: Consolidated Business Performance
Consolidated Business Performance ~~ AngelOne (₹ Mn) Gross Revenues Profit After Tax ■ Gross Broking ■ Interest Income Other TTM PAT: ₹ 4,309 mn +13% Includes tax impact Despite 6% lesser +11% of ₹ 36 mn for +13% trading days earlier years +19% 5,382 +33% +29% \ -1% 4,189 4,745 807 888 896 +55% +39%
Slide 35: Financial Snapshot
Financial Snapshot ~~ AngelOne (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 5,645 10,126 31.1% 42.0% 53.5% 2,557 1,695 51.9% 1,605 701 1,229 941 6,827 4,003 H1 '21 H1 '22 H1 '21 H1 '22 H1 '21 H1 '22 Return on Average Equity; H1 RoE Annualised ■ Gross Broking ■ Interest Income □ Other □
Slide 36: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement ~~ AngelOne Particulars (₹ Mn) Q2 FY22 Q1 FY22 Q2 FY21 FY21 FY20 (a) Interest Income 815 633 493 1,769 1,577 (b) Fees and commission income 4,364 3,889 2,604 10,778 5,644 (c) Net gain on fair value changes 95 104 1 89 25 Total Revenue from operations (
Slide 37: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet ~~ AngelOne Particulars (₹ Mn) Sep'21 Mar'21 Financial Assets (a) Cash, cash equivalents and Bank Balance 45,704 18,774 (b) Trade Receivables 805 2,277 (c) Loans 17,265 11,285 1---------------t-----i----------1 (d) Investments (e) Other financial assets Non-fina
Slide 38: Way Forward
Way Forward ~~ AngelOne 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 growth • Establish Investment Advisory Augment investment in mobile platform, a
Slide 39: About Us
.v~ Angel O About Us
Slide 40: Board Of Directors
Board Of Directors ~~ AngelOne Muralidharan Uday Sankar Roy Kamalji Sahay Ramachandran Independent Director Independent Director Independent Director • 39+ years experience • 32+ years of IT industry experience with • 37+ years experience • Previously was independent director of 20+ years of managem
Slide 41: Experienced Management Team
Experienced Management Team ~~ AngelOne Narayan Gangadhar Jyotiswarup Raiturkar Vineet Agrawal Ankit Rastogi Chief Executive Chief Technology Chief Financial Chief Product Officer Officer Officer Officer • MS in Computer Science • MS - Illinois Tech, Tech NIT Nagpur • B.E. (Computer Science) – NIT S
Slide 42: 4th Fastest Growing App In Finance Category
4th Fastest Growing App In Finance Category ~~ AngelOne India Mobile App Stats: 2020 ~----------------------------------------, ~----------------------------------------, ~----------------------------------------, India is the 2nd largest I I I I I I : 24.27 bn I : US$ 0.50 bn I : 650.66 bn I market
Slide 43: Awards & Accolades
Awards & Accolades ~~ AngelOne Technology Capital Markets Marketing Bronze in Excellence in Communication Best Financial Services API- Finserv at Gold in Excellence in Communication in in the Best use of Social media for Inflection Awards 2021 organised by the BFSI Services at ImageXX awards Shagunk
Slide 44: Consistently Certified By The Great Place To Work
Consistently Certified By The Great Place To Work ~~ AngelOne Certified By The Great Place To Work Institute For Five Consecutive Years 2017 2018 2019 2020 2021 N I - . . ' . n.••<ut1/yN< At..,.i ......... ...,_ Lod.ha ,-....., n.. • .,ettufr ... Anadn.-.,.Lld. W_cno,..,. ..,.... .__....,,..,.......
Slide 45: Company and Investor Relations Advisors contacts
~~ AngelOne Company : Investor Relations Advisors : A Angelone S GAStrategic Growth Advisors Angel One Ltd. (Formerly Known as Angel Broking Limited) Strategic Growth Advisors Pvt. Ltd. CIN – L67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant S