Angel One Limited · NSE:ANGELONE
Angel One — Q3 FY2022 Earnings Presentation
43 slides from Angel One's earnings presentation, Jan 17, 2022
Slide 1: Exchange filing cover letter
•❖... AngelOne To, Listing Department Department of Corporate Service National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 051. Mumbai - 400 001. Symbol: ANGELONE Scrip Code: 5432
Slide 2: Q3 '22 Investor Presentation
A Angelone Q3 ‘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: Q3 '22: Continues To Scale New Milestones While Remaining Highly Profitable
Q3 ‘22: Continues To Scale New Milestones While Remaining Highly Profitable ~~ AngelOne 1.3 million 7.8 million ~3.1 million 9.7% Gross Client Acquisition Total Client Base NSE Active Client Base Share in NSE Active Client No. 1 98% | 18,922 ₹ 6.9 trillion 180 million In Authorised Persons Pin-codes
Slide 5: Q3 '22: Tech & Product Developments
Q3 ‘22: Tech & Product Developments ~~ AngelOne Technology: Increasing reliability Product: Optimising Experience • Ruggedization of key backend services Improving Client Experience • Contextual user learning • Better error handling on Apps • Lower contact ratio • Improving client journeys with the
Slide 6: Technology Innovation, Improving Business Efficiency
Technology Innovation, Improving Business Efficiency ~~ AngelOne Improve Client Acquisition Improve Client Activation Post-Trade Services Fresh iOS and Android App in Beta Areas of Improvement • New Machine Learning based • Optimised various Machine • Modern stream-based data • New native mobile app
Slide 7: Product Innovation, Improving Overall Client Experience
Product Innovation, Improving Overall Client Experience ~~ AngelOne Improved Client Redefined In-App Onboarding Journey Journeys • Upgraded KYC journey • Replaced the obsolete hamburger menu with a refreshed ‘Discover’ tab o Improved Optical Character Recognition • Created a seamless and structured
Slide 8: Digital First Approach
.i \ AngelOne 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: Best In Class Product Suite
Best In Class Product Suite ~~ AngelOne Seamless Experience Across Digital Platforms At Most Competitive Price r----------------------------------------------------------- 1 Machine learning based advisory, ARQ Angel One Mobile ₹0 Angel One Web Straight through process for client on-boarding App wit
Slide 11: Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients
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 12: Huge Untapped Potential
.i \ AngelOne Huge Untapped Potential
Slide 13: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market ~~ AngelOne Steady Growth In Demat Accounts In India Rising Penetration Of Demat Accounts In India (Mn) 16.6% CAGR 5.8% Inflection Point 81 4.1% 55 2.7% 3.1% 36 41 2.4% 32 1.8% 2.0% 2.1% 23 25 28 1.7% 1.7% 21 22 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 9M '2
Slide 14: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition ~~ AngelOne Share Of Top 5 Digital Brokers In Incremental NSE Active Clients 29% 23% 26% 24% 23% __ ,,-------, 25% 27% Others 31% 34% 34% 47% Top 5 77% 76% 77% 75% Digital 71% 74% 69% 66% 66% 73% 53% Brokers* Q1 '21 Q1 '22 Q2 '21 FY21 Q3 '21 Q4 '21 Q2 '22 FY20 Q
Slide 15: Growth Delinked To Market Cycles
Growth Delinked To Market Cycles ~~ AngelOne Consistent Improvement In Trade Volumes Despite Market Volatility Over Last 15 Years Index % Change NSE Total Trades % Change In Incremental (# of Cash Trades + Year NIFTY MIDCAP NIFTY MIDCAP F&O Contracts) NSE Total Demat NIFTY 50 NIFTY 50 Trades Account
Slide 16: Digital Business Driving Exponential Growth For Angel
.i \ AngelOne Digital Business Driving Exponential Growth For Angel
Slide 17: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base ~~ AngelOne Rapidly Growing NSE Active Client Base Of Angel Share Of Active Clients In Total Client Base Angel’s Rank DDDDDDDDD 6th 5th 4th 4th 4th 4th 3rd 3rd 3rd 963bps Improvement In Active Client Ratio (Mn) 3.1 38.3% 39.3% 37.5% 38.0% 37.4% 37
Slide 18: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments ~~ AngelOne Overall Equity Market Share (%) 20.8% 22.7% 21.2% 20.9% 16.1% 12.3% 5.9% 6.9% 8.2% 3.5x Growth Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 F&O Market Share (%) 20.9% 22.9% 21.3% 20.9% 16.1% 12.1% 6.7% 7.8% 3.7x Growth 5.6% Q3 '2
Slide 19: Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities ~~ AngelOne >94% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q3 ’22 (‘000) 1,337 1,277 1,204 79 71 Tier 1: 4.6x Growth 82 956 476 Tier 2: 9.9x Growth 61 376 455 349 550 511 48 39 347 37 197 188 790 Tier 3: 10.1x Gro
Slide 20: Digital Transformation Driving Strong Client Acquisition
Digital Transformation Driving Strong Client Acquisition ~~ AngelOne 92% Of Gross Clients Added Under Flat Fee Plan 7% 8% 8% Traditional Plan 20% 19% 10% 10% 10% 10% (Driven by AP network) 90% 90% 90% 90% 93% 92% 92% 80% 81% Flat Fee Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Gro
Slide 21: Digital Business Drives Multifold Increase In Client Activity
Digital Business Drives Multifold Increase In Client Activity ~~ AngelOne Flat Fee Dominates Overall ADTO 5% 5% Traditional Plan 16% 17% 7% 8% 27% 27% (Driven by AP network) 40% 93% 92% 95% 95% Flat Fee 73% 73% 84% 83% 60% Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Strong Growth
Slide 22: 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) No. Of Orders (Mn) 52 57 55 59 70 60 8,000 7,000 - F&O ADTO (₹ Bn) No. Of Orders (Mn) 116 140 80 120 70 - Commodity ADTO (₹ Bn) 5 No. Of Orde
Slide 23: Digital Led Business Model Successfully Weathering Market Volatility
Digital Led Business Model Successfully Weathering Market Volatility ~~ AngelOne Angel’s Average Daily Orders Increased In 13 Out Of 16 Instances, Where Either Index Corrected By >5% Over The Last 33 Months Change in Angel’s Avg Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall
Slide 24: Financial Highlights
.i \ AngelOne Financial Highlights
Slide 25: Q3 '22: Key Highlights
Q3 ‘22: Key Highlights ~~ AngelOne 19% 20% 18% ₹ 16,422 mn Average Client Funding Book for QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover QoQ Growth in Number of Orders Q3’ 22 ₹ 6,071 mn ₹ 2,256 mn ₹ 2,208 mn ₹ 1,646 mn 12.8% QoQ Growth in Gross Revenues 22.7% QoQ Growth in EBDAT
Slide 26: Client Funding Book Spread Over Wide Customer Base
Client Funding Book Spread Over Wide Customer Base ~~ AngelOne Client Funding Book Size Low Per Client Exposure Client Funding Book Segmentation (% of clients using the facility) (₹ Mn) (₹) 74,876 ■ <₹ 0.1mn ■ ₹ 0.1-0.5mn □ >₹ 0.5mn 17,788 1.9% 2.9% 1.5% 5.1% 3.4% 7.0% 15,144 50,823 38,065 92.9% 95.
Slide 27: New Digital Model Showing Better Prospects
New Digital Model Showing Better Prospects ~~ AngelOne Quarterly Average Revenue Per Client Significant Growth In Overall Client Base (₹) (Mn) 761 699 671 720 673 7.8 658 618 627 593 5.8xGrowth 6.5 547 528 5.3 1.4 - 1.5 1.6 1.8 2.2 2.7 3.2 4.1 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21
Slide 28: Segmental Revenue Break Up
Segmental Revenue Break Up ~~ AngelOne Gross Revenue Mix ■ Gross Broking ■ Interest Depository ■ Ancillary Transaction Revenue D Distribution ■ Other 3% 2% 2% 3% 3% 4% 3% 2% 2% 1% 2% 1% 1% 1% 1% 1% 2% 2% 1% 2% 2% 3% 5% 6% 6% 6% 6% 22% 20% 16% 17% 14% 15% 15% 17% 6% 16% 5% 5% 7% 7% 6% 6% 6% 7% 69% 69
Slide 29: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix ~~ AngelOne (₹ Mn) Age-wise Net Broking Revenue Split (6.4mn gross client addition since Jan’20) ■ <2 years ■ 2-5 years □ >5 years 2,745 2,312 248 2,055 221 1,788 200 425 182 364 Digitization 1,303 1,329 343 journey started 1,016 170 151 321 700 755 150 260 2,071
Slide 30: Technology Adoption: Enhancing Quality And Scalability
Technology Adoption: Enhancing Quality And Scalability ~~ AngelOne Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 603 609 3,367 3,378 3,146 567 2,733 2,787 2,908 2,503 2,401 2,470 496 450 369 388 330 343 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q3 '20 Q4 '20 Q
Slide 31: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits ~~ AngelOne Consolidated EBDAT (₹ Mn) 5.4x 2,256 1,839 1,663 1,463 1,043 1,093 696 421 492 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 ----- -------- ------------------------ -------- ------------------------ -------- -------r----
Slide 32: Consolidated Business Performance
Consolidated Business Performance ~~ AngelOne (₹ Mn) Gross Revenues Profit After Tax ■ Gross Broking ■ Interest Income Other TTM PAT: ₹ 5,223 mn +23% +13% Includes tax impact of ₹ 36 mn for Despite 6% lesser +13% earlier years +11% 1,646 trading days 6,071 +13% +19% +33% 5,382 936 +39% 1,343 4,745 1
Slide 33: Consistently Paying Dividend
Consistently Paying Dividend ~~ AngelOne Dividend Per Share Dividend Payout 35% in FY2021 35% - 35% ) _35%) (₹ / Share) 7.50 7.00 5.70 5.15 4.15 1.21 Q1 '21 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Particulars (₹ / Share) Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Consolidated Book Value Per Share 8
Slide 34: Financial Snapshot
Financial Snapshot ~~ AngelOne (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 8,801 16,197 32.3% 43.7% 52.4% 4,203 2,631 50.9% 2,591 1,206 1,961 1,382 10,976 6,212 9M '21 9M '22 9M '21 9M '22 9M '21 9M '22 ■ Gross Broking ■ Interest Income □ Other □ Return on Average Equity; 9M RoE Annual
Slide 35: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement ~~ AngelOne Particulars (₹ Mn) Q3 FY22 Q2 FY22 Q3 FY21 FY21 FY20 (a) Interest Income 913 815 381 1,769 1,577 (b) Fees and commission income 4,969 4,364 2,655 10,778 5,644 (c) Net gain on fair value changes 92 95 32 89 25 Total Revenue from operations (
Slide 36: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet ~~ AngelOne Particulars (₹ Mn) Dec'21 Mar'21 Financial Assets (a) Cash, cash equivalents and Bank Balance 45,333 18,774 (b) Other Trade Receivables 1,529 1,876 (c) Client Funding Book 15,144 11,686 1---------------t-----i----------1 (d) Investments (e) Other fin
Slide 37: Way Forward
Way Forward ~~ AngelOne ,t,l,t, ► Strengthen our leadership position to become the largest retail broking house in India • Largest Retail Broking House •---• Establish a substantial client base in investment • • Establish Investment Advisory - --► \•I advisory business to support growth Augment inve
Slide 38: About Us
.i \ AngelOne About Us
Slide 39: 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 • Former Director on the boards of India First Life Insurance
Slide 40: 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 41: Awards & Accolades
Awards & Accolades ~~ AngelOne Technology Capital Markets Marketing Best Financial Services API- Finserv at Gold in Excellence in Communication in Bronze for Best use of Content at Inflection Awards 2021 organised by the BFSI Services at ImageXX awards Campaign PR Awards India 2021 Alden, Innovation
Slide 42: 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 . . ' ' .• n.t•ooumfr.,_ ""rl""""'-1""1.Ltd. i..t,_,-""ll, <ll>lllpl".... ,hr _ _ , , ~ .... t.«a1 1'11N1o'«ul<C I..- . ••n, .. ln,l,1"""
Slide 43: Company and Investor Relations 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