Angel One Limited · NSE:ANGELONE
Angel One — Investor Presentation (March 2024)
45 slides from Angel One's investor presentation, Mar 4, 2024
Slide 1: Exchange filing cover letter
To, BSE Limited National Stock Exchange of India Limited Corporate Relations Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street, Fort Bandra Kurla Complex, Bandra (East) Mumbai 400 001 Mumbai 400 051 Maharashtra, India Maharashtra, India Scrip
Slide 2: Corporate Presentation March 2024
Corporate Presentation March 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel One Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 4: Angel One Is One Of The Largest Brokers
Angel One Is One Of The Largest Brokers Q3 FY24 Performance Client Acquisition Metrics Active Client Metrics Transaction Metrics Financial Metrics 19.5 Mn (+14.0% QoQ) 5.3 Mn (+9.9% QoQ) 350 Mn (+3.5% QoQ) ₹ 8.3 Bn (+1.4% QoQ) Total Client Base NSE Active Client Base Number of Orders Total Net Reven
Slide 5: Key Business Highlights
Key Business Highlights 1 Digital Brokers At The Forefront Of Growth Opportunities In An Underpenetrated Market 2 Large Scale Growth Platform Backed By A Customer Centric Model 3 Fintech Model With Positive Unit Economics 4 Experienced Management Team With Robust Corporate Governance Framework 5 Rob
Slide 6: Digital Brokers At The Forefront Of Growth Opportunities In An Underpenetrated Market
Digital Brokers At The Forefront Of Growth Opportunities In An Underpenetrated Market
Slide 7: Trading Activity On NSE, India's Largest Stock Exchange
Trading Activity On NSE, India’s Largest Stock Exchange Activity On NSE In Nov ‘23 > 83 mn investors registered • Share of Individual investors’ in NSE free float market cap touched 19.5% • Share of Domestic MFs in NSE free float market Turnover > ₹ 100 ₹ 1 0 - 100 cap rose to a high of 17.6%, prima
Slide 8: Volume Growth On NSE Trading Platform Delinked With Market Cycles
Volume Growth On NSE Trading Platform Delinked With Market Cycles Consistent Improvement In NSE Trade Volumes Despite Market Volatility Over Last 16 Years FY16: Slowing China FY20: COVID-19 20,000 GDP, Greek Debt 50 FY12: High Inflation, Nifty 50: -26% Default, end of QE Low Growth In India Trades:
Slide 9: Fintech Model Is Enabling Wider Market Penetration
Fintech Model Is Enabling Wider Market Penetration India: Target Addressable Market India Population - 2021 Unique Accounts in Financial Individual PAN Card Holders India Demat Accounts India NSE Active Clients 26% Institutions (Mn) 26% 139 Mn 36 Mn 1.1 Bn 656 Mn (Dec ‘23) (Dec ‘23) 1.4 Bn (Dec‘21)
Slide 10: Digital Brokers At The Forefront Of Increasing Fintech Penetration
Digital Brokers At The Forefront Of Increasing Fintech Penetration Share Of Top 5 Digital Brokers In Incremental NSE Active Clients Industry -0.66 -2.05 -2.66 -1.77 Others Industry 27% 34% 32% 30% 34% de-grew Angel One +0.16 +0.06 +0.04 +0.13 but Angel continued Other Digital to grow Top 5 Digital B
Slide 11: Large Scale Growth Platform Backed By A Customer Centric Model
Large Scale Growth Platform Backed By A Customer Centric Model
Slide 12: Outperforming Industry In Client Acquisitions
Outperforming Industry In Client Acquisitions India: Incremental Demat Accounts Angel: Incremental Client Base +142% +121% (Mn) (Mn) -28% -10% 5.7 34.6 5.1 4.6 24.8 24.8 2.3 14.3 FY21 FY22 FY23 9M '24 FY21 FY22 FY23 9M '24 Angel’s market share in incremental demat accounts in India 16% 15% 18% 23% 1
Slide 13: Increasing Market Share In NSE Active Client Base
Increasing Market Share In NSE Active Client Base Expanding Market Share In NSE Active Client Base 505 bps Expansion In Market Share 14.3% 14.6% 14.8% 13.1% 11.2% 12.0% 10.1% 10.6% 9.7% Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Angel One’s Ranking In Incremental NSE Active Clien
Slide 14: Healthy Retail ADTO Market Share Across Segments
Healthy Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 22.8% 24.5% 26.2% 26.8% 20.9% 21.0% 20.8% 21.7% 21.5% 1.3x Growth Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 F&O Market Share (%) 24.6% 26.2% 26.9% 20.9% 21.1% 20.8% 21.7% 21.6% 22.8% 1.3x Growth Q3
Slide 15: Continuous Improvement In Existing Offerings
Continuous Improvement In Existing Offerings Open Interest Analytics Discover Stocks • Open Interest analytics helps clients to • Simplifying the first investment analyse OI, Put Call ratio vs time experience • Helps clients to visualise multi-strike OI • Screeners host different collection of chart
Slide 16: Focus On Improving Client Experience
Focus On Improving Client Experience Features Development Live Pipeline New Features Introduced, Focused On Elevating Experience Tick-by-Tick Data On Charts • Significantly enhances accuracy & provides clients with data on the most recent market activity • Sharpens technical indicators & pattern rec
Slide 17: Scaling Up The Assisted Business
Scaling Up The Assisted Business Equities, Commodities, Currency Multi-Product Lending ✔ Multichannel play for better reach Mutual Funds Products ✔ Build an ecosystem to offer full product suite Insurance Fixed Income ✔ Significantly deepen our channel partner network and Products Products geographi
Slide 18: Expanding Multi-Product Relationship
Expanding Multi-Product Relationship Unique SIPs Registered Consumer Credit Products (‘000) ❖ Building proprietary AI/ML models using internal and 955 external consumer data, to facilitate lending partners 725 underwrite and collect better 431 ❖ Initial review of customer bureau data indicates high
Slide 19: Fintech Model With Positive Unit Economics
Fintech Model With Positive Unit Economics
Slide 20: Fintech Approach Driving Multifold Increase In Client Activity
Fintech Approach Driving Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 5% 4% 4% 4% 3% 2% 3% 2% 1% Traditional Plan 95% 96% 96% 96% 97% 98% 97% 98% 99% Flat Fee Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Strong Growth In Overall ADTO 40,000 Overall ADTO (₹
Slide 21: Attracting Young Customers From Beyond Tier 1 Cities
Attracting Young Customers From Beyond Tier 1 Cities Consistently Acquiring Younger Clients >89% Of Gross Client Addition Contributed By Tier 2, 3 & Beyond Cities In Q3 ’24 1,337 1,468 1,257 1,178 988 1,293 1,325 2,117 2,461 (‘000) <25 years >25 years 254 51% 225 60% 57% 553 490 169 Tier 1 157 133 1
Slide 22: Improving Broking Revenue Contribution From Longer Vintage Clients
Improving Broking Revenue Contribution From Longer Vintage Clients Rising Share Of Net Broking Revenue From Longer Vintage Clients <1 years 1-2 years 2-3 years 3-5 years 5+ years 51% 30% 25% 23% 21% 9% 16% 9% 9% 7% Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 21
Slide 23: High Variable Cost Insulates Margin Profile
High Variable Cost Insulates Margin Profile FY23 Cost Split Variable cost: 78% Other variable cost includes cost of acquisition, components of employee benefit expenses, cloud expenses, KYC & transactional expenses High variable cost structure provides elastic cost levers to protect margins 22
Slide 24: Experienced Management Team With Robust Corporate Governance Framework
Experienced Management Team With Robust Corporate Governance Framework
Slide 25: Board Of Directors
Board Of Directors Dinesh D. Thakkar Muralidharan Krishnaswamy Arabadi Mala Todarwal Kalyan Prasath Chairman and Managing Ramachandran Sridhar Independent Director Independent Director Director Independent Director Independent Director • B.E. (Electrical) & Masters in Financial • 17+ years experienc
Slide 26: Experienced Management Team (1/2)
Experienced Management Team (1/2) Amit Majumdar Ravish Sinha Dinesh D. Thakkar Vineet Agrawal Exec. Director – Strategic Chief Product & Technology Jyotiswarup Raiturkar Managing Director Chief Financial Officer Initiatives Officer Chief Technology Officer • Promoter of Angel Group • C.A., C.S., C.M
Slide 27: Experienced Management Team (2/2)
Experienced Management Team (2/2) Anuprita Daga Dr. Pravin Bathe Subhash Menon Deepak Chandani Group Chief Information Meenal Maheshwari Shah Chief Legal &Compliance Chief Human Resources Chief Data Officer Security Officer Group General Counsel Officer Officer • IIT BHU • B.E., MBA (Information Man
Slide 28: People Practices & Social Empowerment
People Practices & Social Empowerment Robust Employee Engagement Angel’s CSR Programmes Maharashtra Rajasthan Skilling and Digital and Gujarat placement of youth Financial Literacy Karnataka Delhi Great Place to Work ✔ Ranked 52nd in Top 100 Best Companies to work for in India Andhra Pradesh ✔ Liste
Slide 29: Robust Operating And Financial Performance With Improving Profitability Profile
Robust Operating And Financial Performance With Improving Profitability Profile
Slide 30: Order Volumes Are Key Revenue Driver
Order Volumes Are Key Revenue Driver Trend Of Orders Angel One’s NSE Active Client Base (Mn) (Mn) 350 5.3 338 4.9 4.4 4.2 4.2 4.3 263 4.0 249 3.7 230 226 211 207 3.1 180 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 3rd
Slide 31: Client Activity: Number Of Orders & ADTO
Client Activity: Number Of Orders & ADTO Cash Segment F&O Segment Commodity Segment Cash ADTO (₹ Bn) No. Of Orders (Mn) F&O ADTO (₹ Bn) No. Of Orders (Mn) Commodity ADTO (₹ Bn) No. Of Orders (Mn) 60 74 80 40,000 300 400 16 264 262 14 70 35,000 350 14 50 62 250 12 57 59 11 60 30,000 215 300 12 199 48
Slide 32: Client Funding Book Spread Over Large Customer Base
Client Funding Book Spread Over Large Customer Base Client Funding Book Size Low Per Client Exposure Client Funding Book Segmentation (% of clients using the facility) (₹ Mn) (₹) 1,31,406 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 1,17,432 4.1% 6.3% 4.7% 19,459 19,742 1,02,280 8.8% 7.7% 10.1% 13,773 87.0% 83.7%
Slide 33: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Turnover Charges Other Income 8% 2% 9% 8% 1% 1% 1% 1% 3% 4% 4% 17% 18% 20% Q3 ‘23 Q2 ‘24 Q3 ‘24 67% 67% 69% Gross Broking Revenue Mix F&O Cash Commodity Currency 5% 1% 4% 5% 0% 11% 11% 12% Q3 ‘23 Q1 ‘24 Q3 ‘2
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues EBDAT Profit After Tax Gross Broking Interest Income Other +40% +18% +14% 4,185 10,493 10,608 3,045 3,641 1,411 1,401 2,603 3,099 2,280 7,597 1,812 2,123 1,126 1,371 7,270 7,084 5,100 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3
Slide 35: EBDAT Bridge
EBDAT Bridge Q2 ‘24 EBDAT Margin Q3 ‘24 EBDAT Margin 51.3% -729 bps 44.0% (₹ Mn) Q3 ‘24 EBDAT impacted due to: 117 -56 -30 -574 • 1.7% QoQ Decline In Net Broking Income: • 20% increase in cash segment orders • Change in tariff structure for cash intraday segment • Offset by 14.2% QoQ growth in Net I
Slide 36: Net Broking Revenue & Margin Profile
Net Broking Revenue & Margin Profile Reported EBDAT Normalised EBDAT Contribution to Net Broking Revenue EBDAT Margin* : Direct Business (₹ Mn) Direct Business Assisted Business 53% 54% 51% 51% 50% 48% 47% 45% 41% 5,232 5,144 48% 1,149 1,215 (22%) (24%) 3,532 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '2
Slide 37: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 FY23 FY22 (a) Interest Income 2,123 1,812 1,371 5,383.23 3,825.00 5,195.05 3,653.33 (b) Fees and commission income 8,446 8,649 6,092 23,702.51 17,896.44 24,760.16 18,960.73 (c) Net gain on fair value chan
Slide 38: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Assets (₹ Mn) Dec ‘23 Mar ‘23 Liabilities and Equity (₹ Mn) Dec ’23 Mar ’23 Financial Assets Financial Liabilities (a) Cash and cash equivalents 1,692.44 1,330.61 (a) Trade payables (b) Bank balance other than cash and cash (i) total outstanding dues of micro en
Slide 39: Well Defined Strategy And Aligned Corporate Structure
Well Defined Strategy And Aligned Corporate Structure
Slide 40: Exploring Growth Opportunities
Exploring Growth Opportunities 07. Talent / IP Acquisition: 01. Manufacturing Platforms: Onboard strategic IP’s & entrepreneurial teams to Strategic investments in businesses of scale build differentiated products across consumer financial services landscape 07 01 06. Learning Platforms: 02. Distrib
Slide 41: Proposed Group Restructuring: Preparing To Play The Long-Term Strategy
Proposed Group Restructuring: Preparing To Play The Long-Term Strategy Proposed Group Structure Common Tech & Product Broking: Broking: Lead Generation Development & Infra. Mutual Fund Distribution AMC Sponsor Assisted Business Direct Clients (Super App) 100% subsidiaries Angel Financial Mimansa Ang
Slide 42: Annexures
Annexures
Slide 43: Successfully Weathering Market Volatility
Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 22 Out Of 27 Instances, Where Either Index Corrected By >5% Over The Last 57 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s Avg Orders 18 Apr - 15 May,
Slide 44: Awards & Accolades
Awards & Accolades Technology Industry Marketing Best Customer Centric Culture in ACEF Asian Leaders Award 2023 - Best Fintech hosted by expleo organised Best Performer in Equity Derivatives b Video Content for BFSI, Best Brand by Quantic at 2nd Annual Excellence (Retail) 2023- 24 by BSE Packaging f
Slide 45: Company: Investor Relations Advisors
Company : Investor Relations Advisors : Angel One Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Email Id – hitul.gutka@angelbroking.com shogun.jain@sgapl.net / shrikant.sangani@sgapl.n