Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Investor Presentation (June 2020)
47 slides from Jm Financial's investor presentation, Jun 4, 2020
Slide 1: Exchange cover letter: Corporate Presentation
June 4, 2020 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1st Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (East) Mumbai 400001 Mumbai – 400 051 Security Code: 523405
Slide 2: JM Financial Limited Corporate Presentation
JM Financial Limited Corporate Presentation
Slide 3: Disclaimer
Disclaimer This presentation has been prepared for general information purposes in respect of JM Financial Limited (“Company”, together with its subsidiaries and associate the “Group”) only, without regard to any specific objectives, suitability, financial situations and needs of any particular pers
Slide 4: Presentation Overview
Presentation Overview 1 Group Overview 2 Key Strengths and Strategies 3 Business Overview 4 Financial Performance 5 Board of Directors 3
Slide 5: Group Overview
Section 1 Group Overview
Slide 6: The Journey of JM Financial Group
The Journey of JM Financial Group JM Financial Joint Venture with Morgan Stanley 1973 1986 1994 1998 2004 2005-2006 2006 -2007 2007 Incorporation of JM JM Financial Set up mutual JV with Capital Preferential issue of shares Launched Terminated Financial and Limited(1) fund Morgan market to Tiger Glo
Slide 7: From a Corporate Finance Advisor to a Corporate Finance Provider
From a Corporate Finance “Advisor” to a Corporate Finance “Provider” Loan Book Lending to corporates and developers FY12 : Rs. 9.2 BN; 1 FY18: Rs. 120.1 BN From being an advisor (Wholesale mortgage and corporate lending) FY20: Rs. 103.2 BN to Corporates and Institutions for AUM Acquiring distressed
Slide 8: Key Strengths and Strategies
Section 2 Key Strengths and Strategies
Slide 9: Key Strengths
Key Strengths Strong track record of over Long standing operations for over four decades in the financial services four decades of being industry in India resulting in “JM Financial” being a well established franchise trusted partners to clients Strong relationship with our client base Diversi
Slide 10: Businesses Performance
Diversified Business Model Our Business Segments Investment Banking, Mortgage Distressed Asset Wealth Management & Lending Credit Management Securities Business (IWS) Investment Banking & Securities Wholesale – RE Developer Funding Asset Reconstruction Mutual Fund Wealth Management Retail - Housing,
Slide 11: Consistent Financial Performance
Consistent Financial Performance Consolidated Total Revenue^ Consolidated Pre-Provision Profit# Consolidated Profit Before Tax Rs BN Rs BN Rs BN 35.0 34.5 Covid19 adjusted PBT Rs.12.7.BN* 31.0 2.6% 1.7% 13.2 13.3 3.6% 14.4% 12.0% 12.8 10.3% 11.6 37.1% 39.4% 12.0 10.9 30.4% 55.7% 46.0% 46.9% FY18 FY1
Slide 12: Robust Lending Book Profile
Robust Lending Book Profile Consolidated Loan Book Spread Analysis Rs BN (%) 147.7 141.1 27.5 23.2 115.3 14.1% 13.1% 13.3% 23.3 10.8 22.7 5.8 4.3 4.7 10.0% 7.4 9.2% 8.7% 92.6 101.3 80.5 6.2% 6.0% 6.6% FY18 FY19 FY20 FY18 FY19 FY20 Wholesale Mortgage Retail Mortgage Capital Market Corporate Yield % C
Slide 13: Diversified Sources of Borrowing and Strong Credit Rating Profile
Diversified Sources of Borrowing and Strong Credit Rating Profile Consolidated Borrowing Breakup – March 2018* Consolidated Borrowing Breakup – March 2020* Short Term Others Short Commercial Loans from 1.5% Papers Term Banks Short 8.8% 6.1% 1.9% Others Term 0.6% 33.1% Terms Loans Commercial Short Te
Slide 14: Navigated through the Challenges post September 2018
Navigated through the Challenges post September 2018 1 Equity fund raise of Rs.8.3 billion in JM Financial Credit Solutions Limited in September 2018 2 Followed prudent practises prior to the crisis; focused on risk adjusted profitable growth 3 Credit Ratings continue to remain the same since Septem
Slide 15: Navigated through the Challenges post September 2018
Navigated through the Challenges post September 2018 5 Diversified the loan book through retail mortgage lending business 6 Further diversified the borrowing profile and the investor base Others Others STL STL 2.1% CP 0.7% 2.1% Others STL 1.9% 6.1% 1.5% NCD 2.0% NCD 40.3% 47.3% LT - ICD CP 1.1% NCD
Slide 16: Even post September 2018, we continued to invest in our businesses
Even post September 2018, we continued to invest in our businesses Launched Elite wealth management, new recruitment in private wealth management Investment Banking, Wealth Debt capital marketsInvestment Banking, Wealth Management and Securities practise strengthened Management and Securities
Slide 17: Depth of Management
Depth of Management • Joined JM Financial Group in 2009 • Managing Director of JM Financial Ltd since October 2016 • Prior to that worked with the global markets group of Bank • Instrumental in the launch of the Asset Reconstruction business, Real Estate Finance business, building a global of Americ
Slide 18: Business Overview
Section 3 Business Overview
Slide 19: Investment Banking, Wealth Management and Securities
Tab A Investment Banking, Wealth Management and Securities
Slide 20: Integrated approach to meet client needs
Integrated approach to meet client needs Investment Banking and Institutional Sales, Sales Trading 1 Debt Capital Markets 2 and Research • Investment bank providing a wide range of • Coverage of recognised investors across services regions • Strong track record of client relationships • Extensive re
Slide 21: Our complementary business offerings to Clients
Our complementary business offerings to Clients Robust Loan Book Asset Quality Wealth AuA Rs BN Gross and Net NPA (Rs Bn & %) Rs. BN 74.1 Gross NPA 0.2 0.1 0.4 448.8 4.1 418.9 56.3 44.8 Net NPA 0.2 0.1 0.2 61.9 27.5 3.8 318.1 38.8 23.2 76.4 4.4 233.5 302.4 23.3 0.9% 10.8 17.7 122.7 4.6 0.2% 19.2 0.2
Slide 22: Consistent Financial Performance
Consistent Financial Performance Total Revenue Pre-Provision Profit** and Profit After Tax Rs BN Rs BN Covid19 Adjusted PAT – Rs.3.3 BN (FY20)* 17.2 16.0 16.1 6.1 46.9% 41.4% 5.0 52.9% 4.0 3.7 3.1 2.4 53.1% 58.6% 47.1% FY18 FY19 FY20 FY18 FY19 FY20 Pre-Prov Profit Profit After Tax Interest Income Fe
Slide 23: Mortgage Lending
Tab B Mortgage Lending
Slide 24: Overview
Overview JM Financial Credit Solutions (wholesale mortgage) JM Financial Home Loans (retail mortgage) Received capital investment in JM Financial Limited’s real Registered with National Housing Bank of India (NHB) in estate lending subsidiary (JM Financial Credit Solutions(1)) November 2017 from a G
Slide 25: Wholesale Mortgage – JMFCSL
Wholesale Mortgage – JMFCSL Product wise split of loan book – March 2020 Lending Philosophy LAS 13.4% To be senior secured lender at all times Project at Early Avoid consortium lending Stage Project Loan 8.8% 44.2% Land Micro market surveys 8.0% Mostly residential projects LAP 25.6% Key de
Slide 26: Retail Mortgage – JMFHL
Retail Mortgage – JMFHL Product wise split of loan book – March 2020 Home loan underwriting philosophy Borrower’s verification through real time digital verification, field EIL verification, de-dupe and negative database check 18.6% Risk and Fraud Control through by authenticating the validity o
Slide 27: Operating and Financial Performance – Mortgage Lending
Operating and Financial Performance – Mortgage Lending (Wholesale + Retail) Total Income Spread Analysis Cost to net total income Rs BN (%) (%) Employees 105 185 334 (No.) 12.9 13.5 14.7% 14.7% 14.2% 13.7% 9.4 10.1% 10.1% 9.2% 9.2% 9.5% 7.3% 7.9% 8.0% FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 Yie
Slide 28: Operating and Financial Performance – Mortgage Lending
Operating and Financial Performance – Mortgage Lending (Wholesale + Retail) Loan Book Asset quality Rs. BN Gross and Net NPA (Rs BN & %) Gross NPA 0.8 0.9 1.5 83.2 Net NPA 0.7 0.7 1.1 73.6 76.5 2.0% 1.0% 1.0% 1.4% 0.9% 0.8% FY18 FY19 FY20 FY18 FY19 FY20 Gross NPA % Net NPA % Leverage Analysis Capita
Slide 29: Distressed Credit
Tab C Distressed Credit
Slide 30: Overview
Overview JM Financial Asset Reconstruction – Overview Distressed Asset Business Philosophy • 59.25% equity stake held by JM Financial Limited (excl. CCDs) as of Mar 31, 2020 • Invest in overleveraged operating companies with strong • 55 member professional team as March 31, 2020. The team is also in
Slide 31: Financial Performance
Financial Performance Total Revenues Profit before tax Rs BN Rs BN 5.0 2.0 4.1 3.2 0.8 0.0 FY18 FY19 FY20 FY18 FY19 FY20 PAT (Pre & Post NCI*) Leverage Analysis** Rs BN Rs BN Covid 19 Adjusted– 1.3 Covid 19 Adjusted– Rs.0.6 BN 60.0 2.5 Rs.1.0 BN (FY20)# 2.0 (FY20)## 1.8 0.9 1.3 1.9 1.6 1.5 30.0 1.2
Slide 32: Asset Management
Tab D Asset Management
Slide 33: Overview
Overview Average AUM Rs. BN 59.54% stake held by JM Financial Limited 148.1 112.2 59.7 Appointed new Chief Investment Officer 36.1 65.0 23.5 88.4 Customer base includes Corporate, Institutional and HNI 76.1 41.5 Investors FY18 FY19 FY20 Equity AAUM Debt AAUM Announced the first close of distressed o
Slide 34: Financial Performance
Financial Performance Cost to Income* Profit before tax % Rs BN 0.8 63.7% 0.6 38.8% 29.0% 0.2 FY18 FY19 FY20 FY18 FY19 FY20 PAT** (Pre & Post NCI) Cash, Cash Equivalents and investments Rs BN Rs BN 0.6 1.8 1.7 1.6 0.4 0.4 0.2 0.2 0.1 FY18 FY19 FY20 FY18 FY19 FY20 Pre NCI Post NCI * at entity level a
Slide 35: Financial Performance
Section 4 Financial Performance
Slide 36: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement For the year ended For the year ended For the year ended Particulars (Rs million) 31-Mar-18 31-Mar-19 31-Mar-20 Income Revenue from operations Interest Income 18,989.1 23,649.4 22,812.7 Fees and Commission Income 6,985.8 5,768.3 6,462.6 Brokerage Income 2,188.3
Slide 37: Consolidated Profit and Loss Statement (cont'd)
Consolidated Profit and Loss Statement (cont’d) For the year ended For the year ended For the year ended Particulars (Rs Million) 31-Mar-18 31-Mar-19 31-Mar-20 Profit before tax 11,648.4 12,827.9 10,935.2 Tax expenses Current tax 4,540.6 4,892.3 3,285.2 Deferred tax (697.5) (424.9) (159.2) Tax adjus
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at As at Particulars (Rs Million) 31-Mar-18 31-Mar-19 31-Mar-20 Assets Financial Assets Cash and cash equivalents 6,490.8 7,517.7 8,099.0 Bank balances other than cash and cash equivalents 8,778.7 5,304.7 5,195.0 Derivative financial instruments - - 12.6 Trade Rec
Slide 39: Consolidated Balance Sheet (cont'd)
Consolidated Balance Sheet (cont’d) As at As at As at Particulars (Rs million) 31-Mar-18 31-Mar-19 31-Mar-20 Liabilities and Equity Financial Liabilities Derivative financial instruments - - 12.2 Trade Payables dues of micro enterprises and small enterprises 4.5 2.8 9.8 other than micro enterprises
Slide 40: Financial Performance of Key Subsidiaries
Financial Performance of Key Subsidiaries In Rs million JM Financial Credit Solutions Ltd JM Financial Products Ltd JM Financial Asset Recons. Co. Ltd* FY19 FY20 FY19 FY20 FY19 FY20 Total Revenue 12,790.9 13,097.9 Total Revenue 9,335.5 8,407.1 Total Revenue 5,005.9 4,135.0 Net Profit 4,063.9 3,823.5
Slide 41: Board of Directors
Section 5 Board of Directors
Slide 42: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman Mr. Vishal Kampani, Managing Director • Non-Executive Chairman of JM Financial Limited. • Managing Director of JM Financial Limited since October 2016 • Mr. Kampani has been a Director in our Company since June, 1987 • Instrumental in the launch of the
Slide 43: ALM of Lending Companies
Annexure I ALM of Lending Companies
Slide 44: ALM as on March 31, 2020
ALM as on March 31, 2020 JM Financial Credit Solutions Ltd Particulars Over 1 Over 2 Over 3 Over 6 Over 3 Up to 1 Over 1 year Over 5 month to 2 months to months to months to years to 5 Total (Rs Million) month to 3 years years months 3 months 6 months 1 year years Assets: Advances - 3,238.9 5,548.3
Slide 45: ALM as on March 31, 2020 (cont'd)
ALM as on March 31, 2020 (cont’d) JM Financial Capital Ltd Particulars Over 1 Over 2 Over 3 Over 6 Over 3 Up to 1 Over 1 year Over 5 month to 2 months to months to months to years to 5 Total (Rs Million) month to 3 years years months 3 months 6 months 1 year years Assets: Advances 179.2 273.6 148.4
Slide 46: JM Financial – Group Structure
Annexure II JM Financial – Group Structure
Slide 47: Group Structure as on March 31, 2020
Group Structure as on March 31, 2020 46