Iifl Capital Services Ltd · NSE:IIFLCAPS
Iifl Capital Services — IIFL Securities — Investor Presentation (September 2019)
46 slides from Iifl Capital Services's investor presentation, Sep 19, 2019
Slide 1: Exchange intimation letter: Corporate Presentation of IIFL Securities
September 19, 2019 To, The Manager, Listing Department, The Manager, BSE Limited, Listing Department, Phiroze Jeejeebhoy Tower, The National Stock Exchange of India Ltd., Dalai Street, Exchange Plaza, 5 Floor, Plot C/1, G Block, Mumbai 400 001. Bandra - Kuria Complex, Bandra (E), BSE Scrip Code: 532
Slide 2: Corporate Presentation
Corporate Presentation IIFL Securities Limited NSE : IIFLSEC BSE : 542773 indiainfoline.com | iiflcap.com
Slide 3: Table of Contents
Table of Contents Section Contents Slide reference 1 IIFL Group Overview 4-5 2 IIFL Securities – Business Overview 7 - 25 3 Key Strengths 27 – 32 4 Opportunity Landscape 34 – 36 5 Financial Highlights 38 – 40 6 Future Growth Strategies 42 – 42 7 Appendix 44 - 44 2
Slide 4: IIFL Group Overview
Section 1: IIFL Group Overview 3
Slide 5: IIFL - India's Leading Integrated Financial Services Group
IIFL - India’s Leading Integrated Financial Services Group Vision Core values Fairness Integrity Transparency To be the most respected financial services in our transactions with all of the utmost nature, in letter, in in all our dealings with company in India stakeholders, bereft of fear or spirit,
Slide 6: IIFL Group – Structure and Ownership
IIFL Group – Structure and Ownership IIFL Securities Shareholding Pattern^ IIFL Wealth Shareholding Pattern^ IIFL Finance Shareholding Pattern^ Promoters: 24.7% Promoters: 29.0% Promoters: 29.0% $$ General Atlantic: 21.9% IIFL Finance Limited Fairfax: 35.4% Fairfax: 35.4% Fairfax: 19.0
Slide 7: IIFL Securities – Business Overview
Section 2: IIFL Securities – Business Overview 6
Slide 8: IIFL Securities – A Snapshot
IIFL Securities – A Snapshot Institutional Broking Financial Product Distribution Leading franchise with 600+ institutional clients AUM: 101% 2Yr FY19 CAGR Track record of $15Bn block SIP Transactions: 49% 2Yr FY19 CAGR placements over 5 years 1 2 3 4 5 Retail Broking Investment Banking Real
Slide 9: Corporate Structure
Corporate Structure • Retail & Institutional Broking Member NSE, BSE, MCX, NCDEX, CDSL, IIFL Securities • Investment Banking NSDL Limited • Financial Products Distribution Regulated by SEBI, PFRDA Major Subsidiaries IIFL Capital Inc. Institutional Broking Regulated by SEC, FINRA IIFL Facilities Serv
Slide 10: Business Overview
Business Overview Retail & Institutional Broking Investment Banking Financial Products Distribution Real Estate Asset Portfolio 9
Slide 11: One of the Largest Independent Full-Service Broking House
One of the Largest Independent Full-Service Broking House Brokerage and related Income (₹ Mn) Our equity broking comprises Annual Quarterly retail and institutional broking revenues 5,141 5,048 4,560 Institutional equity broking revenue has been in the range 1,371 1,104 of about 35% of the total
Slide 12: Strong Retail Broking Legacy Business
Strong Retail Broking Legacy Business Legacy of about two decades in retail broking and equity research, serving over 2.4mn customers Presence in about 2,500 locations covering branches and business partners over 500 cities in India Business offerings comprise equity, commodities and currency
Slide 13: Comprehensive Retail Offerings
Comprehensive Retail Offerings High CLIENTS Value Traders Key Enablers Retail Mass Affluent Technology CHANNELS RM Sub-Brokers Service Mobile Web Call Centre IIFL Markets / Trader Mutual Funds Terminal Brand PRODUCTS Equity Commodities Currency Research Mutual Funds Insurance Bonds Loans FDs, NPS 12
Slide 14: Consistent Customer Activation Supported by Technology
Consistent Customer Activation Supported by Technology Retail Customers (# in ‘000) • Mobile trading has significantly 823 806 aided in increasing the customer 787 771 addition and investor 766 766 participation • More than 2.7Mn downloads of Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 our mobile app
Slide 15: Pedigreed Institutional Broking Franchise
Pedigreed Institutional Broking Franchise Among the top franchises on the street, 75 member team with offices in Mumbai, New York and London 600+ institutional (domestic and foreign) clients Wide customer base covering sovereign wealth funds, foreign portfolio investors, mutual funds, insuranc
Slide 16: Strong Corporate Access – Leveraging Investor Relationships
Strong Corporate Access – Leveraging Investor Relationships IIFL Annual Investor Conferences – FY2019 IIFL’s 10th Enterprising India IIFL Invest India Global Investors’ Conference – International Conferences Participation of 120+ companies and Three international conferences – over 700 domestic
Slide 17: Turnover and Market Share
Turnover and Market Share IIFL Average Daily Turnover – Cash (₹ Bn)* IIFL Average Daily Turnover – Total (₹ Bn)* Annual Quarterly Annual Quarterly 12.59 11.54 11.55 11.27 11.17 11.21 209.95 10.78 177.09 170.15 169.34 165.89 163.04 139.88 FY18 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 FY18 FY19 Q1
Slide 18: Business Overview
Business Overview Retail & Institutional Broking Investment Banking Financial Products Distribution Real Estate Asset Portfolio 17
Slide 19: Leading Investment Bank in India
Leading Investment Bank in India Rapidly growing franchise – ranked #1* in the league tables in FY18 and FY19 in equity raising for private sector corporates #1 Strong pipeline and product diversity with presence in ECM, Private Equity and DCM IIFL ranks #1 Investment Banker Advising a large n
Slide 20: Investment Banking Offerings across Products
Investment Banking Offerings across Products Comprehensive range of Offerings^ Leading franchise with many firsts to its merit Capital Markets Initial Public Offerings Follow-on Public Offerings Qualified Institutional Placements InvITs IIFL – Best IPO Lead Manager ReITs for FY18 & FY19 by
Slide 21: Select Marquee Deals
Select Marquee Deals Completed Transactions in FY19 and Q1FY20 Polycab India Shree Digvijay Indian Energy Aarti Industries Cement Company Exchange On-market stake sale post open offer Rs.13,453Mn Rs.690Mn Rs.7,500Mn IPO Buyback QIP Apr 2019 Apr 2019 Apr 2019 Mar 2019 Embassy Office Parks CreditAcces
Slide 22: Business Overview
Business Overview Retail & Institutional Broking Investment Banking Financial Products Distribution Real Estate Asset Portfolio 21
Slide 23: Distribution of Wide Bouquet of Financial Products
Distribution of Wide Bouquet of Financial Products Product offerings Mutual Other Insurance IPOs Funds Products PMS, AIFs, Loans, Bonds, Life General Health Fixed Deposits, NPS Financial Products Distribution Revenues (₹ Mn) FPD revenue constituted 36% of total brokerage and related revenue in FY1
Slide 24: Building Holistic Relationship with Customers through FPD
Building Holistic Relationship with Customers through FPD Mutual Fund AUM (₹ Bn) SIP Transactions (Count) SIP AUM as of June 30, 2019 is ₹6.3Bn, up 41% y-o-y 34.4 34.4 33.3 31.3 85,008 88,837 84,878 88,837 88,298 28.8 18.6 40,175 FY17 FY18 FY19 Q1FY19 Q4FY19 Q1FY20 FY17 FY18 FY19 Q1FY19 Q4FY19 Q1FY2
Slide 25: Business Overview
Business Overview Retail & Institutional Broking Investment Banking Financial Products Distribution Real Estate Asset Portfolio 24
Slide 26: High-quality Portfolio of Commercial Properties
High-quality Portfolio of Commercial Properties Overview Well-spread portfolio of commercial office space and shops primarily leased to IIFL entities Owned building area of 412,000 sq. ft. Commercial office space and shops area of over 222,000 sq. ft. Spread across six business locations – MMR, Gurg
Slide 27: Key Strengths
SECURITIES Section 3: Key Strengths
Slide 28: IIFL – Key Strengths
IIFL – Key Strengths Wide range of financial products and services Led by an independent board Large and diverse and highly distribution experienced network management Strong and well- established Brand Extensive technology and Strong research innovation capabilities platform and infrastructure 27
Slide 29: Wide Range of Financial Products and Services
Wide Range of Financial Products and Services Investment Banking Offerings: Capital Market Services – IPOs, FPOs, QIPs, ReITs, InvITs Corporates Financial Advisory Services – Private Equity, M&A Advisory Technology and Research remains the backbone of our success in each of our Institutional Equ
Slide 30: Strong Research Capabilities
Strong Research Capabilities Comprehensive Research Coverage across Sectors Sector-wise break up of stocks under coverage Market Cap^ break up of stocks under coverage Agriculture IIFL Research Auto Market Cap bracket Banking & Fin Universe Building Material Capital Goods Above US$ 10 bn 36 20 7 12
Slide 31: Extensive Technology & Innovation Platform & Infrastructure
Extensive Technology & Innovation Platform &Infrastructure Technology has been the cornerstone for IIFL’s strong presence in the broking industry IIFL’s technology platform is an optimum mix of in-house proprietary and external software 100 member strong in-house technology team IIFL Markets IIF
Slide 32: Distribution Network across India
Distribution Network across India • Network of about 2,500 points of presence including branches and sub-brokers • Network spans 500 cities in India providing extensive presence in Tier II/III cities • Overseas presence in USA, UK • Can leverage group company’s points of presence including gold loan
Slide 33: Led by an Independent and Illustrious Board
Led by an Independent and Illustrious Board R Venkataraman, Managing Director Kranti Sinha, Chairman, Independent Co-founder of IIFL Director Previous experience with ICICI Bank, Former CEO of LIC Housing Finance Barclays, GE Capital Former Deputy President Governing MBA from IIM Bangalore
Slide 34: Opportunity Landscape
Section 4: Opportunity Landscape 33
Slide 35: Institutional Investment & Mutual Fund Inflows: Positive Outlook
Institutional Investment & Mutual Fund Inflows: Positive Outlook FII Flows DII Flows (US$ bn) FII Flows- Equity & Debt FII Equity FII Debt (US$ bn) DII Flows - Equity & Debt DII Equity MF Debt 15 30 10 1.3 25 4.5 16.9 20.1 2.2 20 5 10.1 2.9 0.2 0.2 15.9 20.7 17.2 13.9 14.6 18.1 0.2 1.2 1.2 1.7 4.6 6
Slide 36: Mutual Funds & Insurance: Key Beneficiaries of Financial Savings
Mutual Funds & Insurance: Key Beneficiaries of Financial Savings MF AUM has jumped to all time high… …However it is significantly below even developing countries 30 Rs. Trn 25 (% of GDP) MF AUM (CY18) MF AUM 23.80 120 25 21.36 20 17.55 100 103 15 10.8312.33 80 10 7.01 8.25 5.05 4.17 6.14 5.92 5.87 3
Slide 37: Equity Capital Market – Current Scenario
Equity Capital Market – Current Scenario Equity IPO Issuances Amount raised (in Rs Bn) # of IPOs 900 45 50 45 800 40 4 4 4 700 35 600 500 24 25 30 60 50 4.5 4 3.5 32 25 400 816 14 40 49 3 24 20 2.5 8 300 30 15 2 200 20 1.5 1 9 10 100 28 145 282 147 5 10 1 0.5 - 0 - 0 FY14 FY15 FY16 FY17 FY18 FY19 Q1
Slide 38: Financial Highlights
Section 5: Financial Highlights 37
Slide 39: Consolidated Results (as per IND AS)
Consolidated Results (as per IND AS) Quarter ended June 30, 2019 Amount in Rs Mn Q1FY20 Q4FY19 Q-o-Q Q1FY19 Y-o-Y FY19 Fees and Commission Income 1,403.4 1,775.2 (21%) 1,817.6 (23%) 7,185.8 Brokerage & related income 1,075.2 1,103.9 (3%) 1,370.8 (22%) 5,047.9 Investment banking income 27.9 36.1 (23%
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet As at June 30, 2019 Rs Mn As at As at ASSETS June 30 2019 LIABILITIES AND EQUITY June 30 2019 Unaudited Unaudited 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank 9,329 (a) Payables 385 (b) Receivables 335 (b) Borrowings 6,332 (c) Loans & Investments 4,125 (c)
Slide 41: Financial Overview
Financial Overview Revenue from Operations (₹ Mn)* Profit After Tax (₹ Mn)* CAGR: 13% CAGR: 22% 8,347 8,351 1,806 1,714 6,545 1,146 1,254^ 2,059 2,065 1,641 520 371 FY17 FY18 FY19 Q1 FY19 Q4 FY19 Q1 FY20 FY17 FY18 FY19 Q1 FY19 Q4 FY19 Q1 FY20 Net Worth (₹ Bn)* Return on Equity (%)* EPS (₹)* Book Val
Slide 42: Future Growth Strategies
Section 6: Future Growth Strategies 41
Slide 43: Future Growth Strategies
Future Growth Strategies Diversify our revenue streams and continue reducing revenue volatility by offering investment advisory solutions Increase our retail wallet share by offering customized solutions and financial planning to mass affluent segment Leverage mobile technology to expand and serve r
Slide 44: Appendix
FL SECURITIES Section 7: Appendix 43
Slide 45: Awards & Recognitions
Awards & Recognitions ‘Going The Extra Mile’ (for special ‘Best Use of Digital “Leadership in Customer Service initiatives & innovative approach Media/Platform in the share in Financial Services Sector” adopted towards improving the trading category’ Award penetration of the commodity derivatives ma
Slide 46: Thank You
Thank You Published in September 2019 IIFL Securities Limited. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by
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