Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (November 2023)
24 slides from Edelweiss Financial Services's investor presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter: Business Update on Mutual Fund Business
EW/Sec/2023-24/206 November 10, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Business Update on Mutual Fund Bus
Slide 2: Mutual Funds Business Update
Mutual Funds Business Update November 2023
Slide 3: Industry & Opportunity; Our Journey; Way Forward
Industry & Opportunity 01 Our Journey 02 Way Forward 03
Slide 4: Industry & Opportunity
Sw, Industry & Opportunity e
Slide 5: The MF Industry will continue to see structural growth
The MF Industry will continue to see structural growth MF Industry assets are growing Much more to be done to deepen the penetration INR Lakh Cr. Size of individual investment avenues as a % of GDP 47 2017 2023 8 22.2% 5 18.5% 9 16.2% 14.1% 20 11.9% 1 9.0% 4 Share of equity & passives segment 8 has
Slide 6: There is an opportunity for young players to see significant growth
There is an opportunity for young players to see significant growth AAuM (INR Cr.) Rank New Entrants AMC name Sep’17 Sep’23 CAGR % Sep’17 Sep’23 WhiteOak Groww Bajaj Finserv Mirae 11,044 1,38,918 53% 22 9 Samco NJ Navi Edelweiss 8,129 1,10,972 55% 26 13 New Entrants in Pipeline PPFAS 821 45,608 95%
Slide 7: Edelweiss AMC – Our Journey so far
Edelweiss AMC – Our Journey so far 6
Slide 8: Our Journey started in 2017 with a unique vision
Our Journey started in 2017 with a unique vision To provide investment solutions that deliver enduring value for customers 7
Slide 9: In the last 5 years, we focused on achieving size & relevance
In the last 5 years, we focused on achieving size & relevance Business Metrics Absolute Particulars Sep’17 Sep’23 Growth Edelweiss MF AuM (INR Cr.) 8,600 1,12,300 13x MF AuM Market Share (%) 0.4% 2.4% 6x Edelweiss Equity & Hybrid AuM (INR Cr.) 5,100 34,200 7x Equity & Hybrid AuM Market Share (%) 0.6
Slide 10: And also built a profitable business
And also built a profitable business Financial Metric Profit After Tax (INR Cr.) 23 -6 H1FY18 H1FY24 Data source : Internal 9
Slide 11: During this journey, we made some important choices
During this journey, we made some important choices Innovation Strategic product choice to win in Fixed Income by being a leader in Passive Debt (~50% market share ) Investments Building an AMC driven by process not star fund managers, with a focus on consistent performance Distribution Building out
Slide 12: We focused on building the foundation for a strong retail franchise (1/4)
We focused on building the foundation for a strong retail franchise (1/4) Innovative launches in line with our product philosophy Equity Passive Fixed Income & Others Recently Listed IPO Fund Bharat Bond ETF / FoFs Momentum based Balanced PSU SDL Index Funds Advantage Fund MSCI Healthcare
Slide 13: We focused on building the foundation for a strong retail franchise (2/4)
We focused on building the foundation for a strong retail franchise (2/4) A process driven AMC that delivers consistency in performance Multi-Strategy Investment Capabilities ~70% of our Equity AuM is in 4–5-star rating bucket Strong team of 22+ professionals Scheme Name 5 Year Value Research Perfor
Slide 14: We focused on building the foundation for a strong retail franchise (3/4)
We focused on building the foundation for a strong retail franchise (3/4) Expanding capacity & deepening retail distribution #Branch Presence #Active Mutual Fund Distributors 9,200 5 28 1,100 2017 2023 Sep'17 Sep'23 #Sales Headcount Key Distribution Partners 120 Banks & NDs B2B Platform 40 Online Pa
Slide 15: We focused on building the foundation for a strong retail franchise (4/4)
We focused on building the foundation for a strong retail franchise (4/4) Engaging with customer; building digital convenience & driving customer satisfaction Marketing Initiatives Net Promoter Score 360-degree SIP Campaigns to drive 32% Brand Mindshare Series & Podcasts with CEO & CIOs -5% Q2FY18 Q
Slide 16: Our AUM has witnessed significant growth
Our AUM has witnessed significant growth Edelweiss MF AAuM Distribution AMC Core Bharat Bond MF AAuM: INR 1,11,000 Cr. 58,900 Particulars CAGR % 52,100 AMC Core AAuM 36% Total MF AAuM 55% MF AAuM: INR 8,100 Cr. Industry AAuM 14% 8,100 - Sep'17 Sep'23 Figures in INR Cr., Data Source : AMF India; Figu
Slide 17: And a high-quality equity book
And a high-quality equity book Equity & Hybrid AuM (INR Cr.) & Market Share (%) Key Funds Strengthening Equity & Hybrid AuM 1.34% Sep’17 Sep’23 9,476 34,200 0.64% 5,100 Sep'17 Sep'23 3,798 Monthly SIP book (INR cr.) 2,455 175 314 477 408 Balanced Advantage Mid Cap Fund Small Cap Fund 5 CAGR % (Since
Slide 18: We have built a differentiated franchise
We have built a differentiated franchise Product innovation Investments Distribution Culture Ability to launch Investment franchise Focused on building truly Young, agile & diverse innovative first-to- focused on process & independent distribution leadership team that is industry products th
Slide 19: Edelweiss AMC – Way Forward
Edelweiss AMC – Way Forward 18
Slide 20: Over the next 5 years, our focus will be on building value
Our focus was on size, scale & relevance | Over the next 5 years, our focus will be on building value 1 Focus on growing profitable AuM – Equities, Hybrids & Alternatives 2 Deepen investment capabilities in research & talent bench in Alternatives 3 Expand our branch network & optimize existing resou
Slide 21: This is a phase where operating leverage will kick in
This is a phase where operating leverage will kick in Growth with operating leverage Growth Phase Investment Phase 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 AuM Growth 20
Slide 22: We are building a profitable high-quality franchise
We are building a profitable high-quality franchise Particulars 2018 2023 H1FY24 Edelweiss MF AuM 11,500 1,03,000 1,12,300 PAT -19 18 23 Net Worth 112 200 224 AuM figure refers to closing MF AuM; Figures in INR Cr; H1FY24 refers to data as on September’23 21
Slide 23: Summary
Summary 1 MF industry in India is stated for structural growth and we will continue to be a significant player at scale 2 Build an AMC that is process focused with a strong track record and widening distribution network 3 Strong and independent approach towards risk and governance 4 Build a young ,
Slide 24: Safe Harbour
Safe Harbour This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Asset Management Ltd (“EAML”). The results in future may vary from the forward-looking statements contained in this document due to various r
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