Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q4 FY24 Earnings Presentation
56 slides from Nuvama Wealth Management's earnings presentation, May 2024
Slide 1: Investor Presentation Q4 FY24 and FY24
NUVAMA Investor Presentation Q4 FY24 and FY24 1
Slide 2: Contents
Contents 1 2 3 4 5 About Us Industry Journey Performance Strategy Landscape Over Years Overview 2
Slide 3: Contents Summary: About Us
Contents Summary ▪ Strong institutional ownership: PAG (promoter of company), 1. ABOUT US one of the largest Asia-based alternative investment managers 2. INDUSTRY LANDSCAPE ▪ Integrated wealth management platform with exhaustive suite of offerings 3. JOURNEY OVER ▪ Only established player with prov
Slide 4: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ ₹ 3.5 trillion 3,100+ employees across 90+ offices ~1,200 RMs Strong Governance Unique Proposition Experienced board and Multi Client S
Slide 5: Majority owned by PAG, a leading investment firm
Majority owned by PAG (promoter of company) a LEADING INVESTMENT FIRM One of the largest Asia-based alternative investment managers with over USD 55B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 3 USD 55B+ 9 7
Slide 6: Comprehensive wealth management platform with exhaustive suite of offerings
COMPREHENSIVE WEALTH MANAGEMENT PLATFORM with exhaustive suite of offerings Our vision is to provide our clients with comprehensive and tailored wealth management solutions and advice We Serve We Provide Access To 1. Products 2. Advisory 3. Capital Markets UHNI and Family Offices Third Party Proprie
Slide 7: Evolved into an integrated wealth management platform
Evolved from individual businesses into an INTEGRATED WEALTH MANAGEMENT PLATFORM 4. Listed, Strong Governance Company to 3. Transitioned Smoothly, Deliver Long-term Value Operating with Independent with PAG as the Promoter 2. Global Partnership Board, Governance, Operations Validating Platform and M
Slide 8: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Only scaled player in both client Culture Client segments with “Full Platform” capabilities Established UHNI and Wealth Managers High Family Boutique Offices Private Banks High Orientation RM / Client Networth & Domestic Banks Affluent Individuals Fintec
Slide 9: Established wealth manager covering client segments of majority of wealth
As an ESTABLISHED WEALTH MANAGER, we cover client segments constituting majority of wealth ~35K 70-75% UHNI Households of total financial ~30 lacs HNI & AFFLUENT wealth Households MASS MARKET RETAIL 9
Slide 10: A high growth company with diversified and superior quality of earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Revenue All figures are in ₹ crore +31% ₹ 2,063 +19% ₹ 1,575 +32% Wealth & Asset ₹ 1,188 ₹ 1,322 Management ₹ 1,016 leading the ₹ 998 ₹ 750 growth ₹ 484 ₹ 476 ₹ 389 ₹ 336 ₹ 331 ₹ 329 ₹ 167 ₹ 171 ₹ 158 ₹ 20 ₹ 68 ₹ 63 - FY21 FY22
Slide 11: Unique business model enabling seamless client solutioning
UNIQUE BUSINESS MODEL, enabling value and seamless client solutioning across ecosystem Small & Medium UHNI Business Owners Family Offices & Business Owners HNI Advisory & Unique Research Products Referrals & Client Distribution Insights Corporates Affluent & Institutions Individuals ONE NUVAMA 11
Slide 12: Contents Summary: Industry Landscape
Contents Summary ▪ India's financial services sector has secular tailwinds 1. ABOUT US o Financial wealth would continue to grow rapidly 2. INDUSTRY LANDSCAPE o Investment asset class will grow even faster o Rising formal penetration will multiply the opportunity 3. JOURNEY OVER YEARS ▪ Making India
Slide 13: In India wealth management is at a nascent stage and presents a huge opportunity
In India WEALTH management is at a nascent stage and presents a HUGE OPPORTUNITY 1 2 3 GDP Growth Forecast Total Wealth to GDP Ratio (~) Share of Financial Wealth % (~) Globally India Matured Markets India Matured Markets India 2-3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India M
Slide 14: Investment asset class is growing fast driven by value migration
Investment asset class is growing fast driven by VALUE MIGRATION and has a LONG RUNWAY AUM CAGR AUM / Premium to GDP Asset Class Last 10Y India US / Global Mutual Funds 21% 16% 116% AIF 68% 1% 13% Insurance 14% 3% 11% India to become the 4th largest private wealth market globally by 2028 14
Slide 15: Making this a structural and scalable play
Making this a STRUCTURAL and SCALABLE play ▪ Enhanced regulatory focus Consolidation ▪ Technology disruptions ▪ Increasing product complexity Greater ▪ Demographics and rising affluence Growth ▪ Critical to client Attractive ▪ Low capital requirements - High RoE Economics ▪ Concentration of wealth -
Slide 16: Contents Summary: Journey Over Years
Contents Summary ▪ Delivering the comprehensive, diversified and scaled 1. ABOUT US wealth management platform. Performance highlights over last 4 years, FY21 to FY24 2. INDUSTRY LANDSCAPE o Client Assets: 30% CAGR powered by ‘Client-First’ philosophy and supported by strong markets 3. JOURNEY OVER
Slide 17: Client Assets: 30% CAGR powered by client-first philosophy
Client Assets: 30% CAGR powered by ‘Client-First’ philosophy and supported by strong markets Wealth Management All figures are in ₹ Cr o Scaled capacity and expanded footprint 30% CAGR RM Count - FY21: 750+ | FY24: 1200+ o Onboarded new & deepened existing relationships 3,45,957 Private Families: FY
Slide 18: Client Assets: By Business Segments
Client Assets: By Business Segments All figures are in ₹ Cr NUVAMA WEALTH NUVAMA PRIVATE 77,930 1,69,904 1,29,391 1,19,540 50,889 52,575 CAGR 98,570 CAGR 33,018 33 % 20 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT ASSET SERVICES 91,156 6,967 5,581 CAGR CAGR 3,856 43,532 34 % 27,056 38,
Slide 19: Revenue: 27% CAGR led by integrated wealth management platform
Revenue: 27% CAGR led by Integrated wealth management platform driving sustainable growth Wealth Management All figures are in ₹ Cr o Scaled presence across UHNI and HNI & Affluent 27% CAGR client segments, mirroring India wealth growth story Only scaled player in both segments, vintage of ~15 years
Slide 20: Revenue: By Business Segments
Revenue: By Business Segments All figures are in ₹ Cr NUVAMA WEALTH NUVAMA PRIVATE 669 519 574 442 409 CAGR 341 CAGR 275 35 % 210 35 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT CAPITAL MARKETS CAGR 805 49 ASSET SERVICES 25 % 37 559 CAGR 503 489 20 59 % IE & IB 0 FY21 FY22 FY23 FY24 FY
Slide 21: Profitability: 44% CAGR led by strategic investments and expense discipline
Profitability: 44% CAGR led by strategic investments & expense discipline, enabling operating leverage PROFIT AFTER TAX All figures are in ₹ Cr o Investments in areas of growth 44% CAGR Wealth Management, Asset Management 597 o Continued focus on operating efficiency Reduced Cost to Income - FY21: 7
Slide 22: Profit Before Tax: By Business Segments
Profit Before Tax: By Business Segments All figures are in ₹ Cr NUVAMA WEALTH NUVAMA PRIVATE 231 185 177 159 CAGR 119 CAGR 84 106 % 32 79 % 26 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT CAPITAL MARKETS 376 CAGR ASSET SERVICES FY21 0 FY22 FY23 FY24 206 211 134 33 % IE & IB -14 -15 -18 F
Slide 23: We are doing it right
WE ARE DOING IT RIGHT Building Wealth, Garnering Accolades o Consistently named Best Wealth Manager by Asian Private Banker for three years o Securing Best Private Bank award from Global Finance Magazine, 2018-2021 o Acknowledged as the Leading India Custodian at the Global Custodian ABEM Survey, 20
Slide 24: Contents Summary: Performance Overview
Contents Summary ▪ Revenues: Q4 FY24 stood at ₹ 596 Cr, grew by 35% YoY and 1. ABOUT US FY24 at ₹ 2,063 Cr, grew by 31% YoY 2. INDUSTRY ▪ Operating PAT: Q4 FY24 stood at ₹ 181 Cr, grew by 57% YoY LANDSCAPE and FY24 at ₹ 597 Cr, grew by 62% YoY ▪ Sustained robust growth in Wealth and Asset Management
Slide 25: Consolidated Performance Q4 FY24 and FY24
Consolidated Performance Q4 FY24 and FY24 25
Slide 26: Business Summary: Q4 FY24 and FY24
Business Summary: Q4 FY24 and FY24 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,600+ ~1,200 ₹ 2,47,835 Cr Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchan
Slide 27: Business Summary: Q4 FY24 and FY24
Business Summary: Q4 FY24 and FY24 STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES Q4 FY24 FY24 FY24 ₹ 596 35 % ₹ 2,063 31 % 62% 695 bps Revenue (Cr and YoY) Revenue (Cr and YoY) Cost to Income (% and YoY) ₹ 181 57 % ₹ 597 62 % 23.6% 580 bps Operating PAT (Cr and YoY) Operating PAT (Cr and
Slide 28: Key Highlights: Q4 FY24 and FY24
Key Highlights: Q4 FY24 and FY24 ▪ Total Revenues: Q4 FY24 stood at ₹ 596 Cr, grew by 35% YoY and FY24 at ₹ 2,063 Cr, grew by 31% YoY o Wealth Management: ₹ 330 Cr in Q4, grew by 16% YoY and ₹ 1,188 Cr in FY24, grew by 17% YoY REVENUE o Asset Management1: ₹ 17 Cr in Q4, grew by 27% YoY and ₹ 63 Cr i
Slide 29: Consolidated Performance: Q4 FY24 and FY24
Consolidated Performance: Q4 FY24 and FY24 Particulars – All figures are in ₹ crores Q3 FY24 Q4 FY24 Q4 FY23 YoY FY23 FY24 YoY Total Revenue 1 558 596 440 35% 1,575 2,063 31% Wealth Management 305 330 284 16% 1,016 1,188 17% Asset Management 13 17 9 27% 2 68 63 34% 2 Capital Markets 237 248 145 71%
Slide 30: Segmental Summary: Q4 FY24 and FY24
Segmental Summary: Q4 FY24 and FY24 Wealth Management Asset Management Capital Markets 30
Slide 31: Nuvama Wealth: Introduction
Nuvama Wealth: Introduction One of the leading wealth managers in Affluent and HNI client segments Well scaled platform Wide presence across India ₹ ~78,000 Cr of client assets ~1,100 RMs and ~7,000 Active External Wealth Managers (EWM) 1.2+ million clients. ~20% serviced by RMs & External Wealth Ma
Slide 32: Nuvama Wealth: Value Proposition
Nuvama Wealth: Value Proposition 01 Multi-Product and Open Architecture Wide bouquet of investment solutions across asset classes and access to seasoned products Unbiased Solutions 02 Offering unbiased and customized solutions as per client’s needs, portfolio and risk appetite Hybrid Ecosystem 03 Co
Slide 33: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) By Solutions By Channel MPIS NII Relationship Manager +30% +16% Brokerage Others External Wealth Manager 231 669 574 177 52% 48% 75% 73% +6% -16% 22% 24% 69 172 183 58 17% 18% 25% 27% 8
Slide 34: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition - Solution (%) Net New Money (₹ Cr and YoY) MPIS Loan Broking Others +7% +48% 5,780 77,930 31% ₹ 16,505 30% ₹ 23,018 5,397 5% 4% 52,575 63% 65% 1% 1% FY23 FY24 FY23 FY24 FY23 FY24 1.09% 1.00% Yield on a
Slide 35: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled platform High-quality team ₹ ~170,000 Cr of client assets 120+ relationship managers 3,600+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Scor
Slide 36: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings CLIENT PROFILE (A) Bespoke Solution (B) Investment Advisory (C) Managed Accounts Suite Investment Policy Statement (IPS) Institutionalized Portfolio Family Offices Fac
Slide 37: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr And YoY) From ARR Earning Assets +18% From Transactional Assets 16% 519 185 442 159 55% 57% +32% 90% 147 55 111 29 45% 43% Q4 FY23 Q4 FY24 FY23 FY24 FY23 FY24 Q4 FY23 Q4 FY24 FY23 FY24 1. FY24
Slide 38: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (%) 1 Net New Money (₹ Cr and YoY) 1 ARR Earning Assets +31% Transactional Assets +9% 1,69,904 11,355 24% ₹ 25,504 23% ₹ 33,421 10,390 1,29,391 76% 77% FY23 FY24 FY23 FY24 FY23 FY24 1.05% 1.02% Yield o
Slide 39: Nuvama Asset Management: Introduction
Nuvama Asset Management: Introduction Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of ₹ 6,967 Cr Private Markets + Public Markets + Commercial Real Estate 79% of this being fee paying High-Quality Investment Team Strong Distribution 20+
Slide 40: Nuvama Asset Management: Value Proposition
Nuvama Asset Management: Value Proposition 01 Differentiated Solutions Addressing client needs by offering unique products, powered by deep insights from wealth clients Proven Fund Management Capabilities 02 Established track record across public markets and private products. Delivering top quartile
Slide 41: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Revenue ex-carry (₹ Cr and YoY) Client Assets (₹ Cr and YoY) Fee Paying Client Assets (₹ Cr and YoY) +25% +40% +34% 6,967 5,495 49 5,581 37 3,912 +27% 12 9 Q4 FY23 Q4 FY24 FY23 FY24 Yield on FY23 FY24 FY23 FY24 average fee-paying 1.01% 0.97% assets 1. AUM
Slide 42: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) +64% Asset Services 180% Institutional Equities and Investment Banking 376 805 32% 41% 489 123% +71% 248 133 134 145 68% 59% 60 Q4 FY23 Q4 FY24 FY23 FY24 FY23 FY24 Q4 FY23 Q4 F
Slide 43: Contents Summary: Strategy
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place 2. INDUSTRY ▪ Adequately capitalized to achieve future goals LANDSCAPE 3. JOURNEY OVER ▪ Well defined trajectory for each segment YEARS 4. PERFORMANCE OVERVIEW 5. STRATEGY 43
Slide 44: Our Strategic Advantage
Our STRATEGIC ADVANTAGE Strong promoters with experienced management team PAG, promoter of the company, is a leading investment firm, with AUM of over USD 55 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehen
Slide 45: Long-term objectives
LONG-TERM objectives Wealth and Asset Operating leverage to deliver Be client-first in Management to be key drivers significant improvement in cost everything we do and would constitute 75 - 80% to income ratio of the earnings 45
Slide 46: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Building entire Leverage tech to Continue journey Expand to NRI client ecosystem with optimize cost-to- from product to segment and People at center. serve, improve portfolio solutions deepen existing Double RM capacity
Slide 47: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Build full suite of Continue to scale public Expand alternatives market strategies Distribution Significantly In 5 years grow Scale Asset AUM to 6-8x Management On-going On-going Nuvama Private Equity Long Only Private V
Slide 48: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Asset Services International Institutional Domestic Institutional Enterprise (Technology Client Group Client Group (AIF, PMS) and Operations) In 5 years grow Grow assets clients assets to under Grow clients and expand Gr
Slide 49: Environmental Social Governance
Environmental Social Governance “Let's do it right: For people, planet, and profit”
Slide 50: Key progress through ESG initiatives
We made key progress last fiscal through ESG initiatives, our plan is to build further on these efforts Environment Social Governance o IGBC Gold certified – Head Office o ISO 27001 for information security o Published first ESG report for FY23 management system o Minimizing scope 2 emissions by pro
Slide 51: Our commitment to CSR stands strong
Our commitment to CSR stands strong. We are getting organized to make meaningful difference Education Women Empowerment Promoting Education, Supporting higher education for children Reducing from marginalized communities Inequalities Community Improving school environment Prevention and Resilience a
Slide 52: Annexures
INalalsy.Ulisys “~ nuvama
Slide 53: Annexure 1: Bridge to financial statements
Annexure 1: Bridge to financial statements Q3 FY24 Q4 FY24 # Particulars - ₹ cr As per As per Netting Netting Financial Adjusted Financial Adjusted (1) (1) Statements Statements A Revenue 842 -284 558 929 -333 596 B Expense 612 -284 328 691 -333 358 C PBT 230 - 230 238 - 238 D Share of Profit in Ass
Slide 54: Annexure 2: Our Board
Annexure 2: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Aswin Vikram Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive
Slide 55: Safe harbour
Safe harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward-looking statements, which are tentative, based on current expectations of the management of Nuvama Wealth Management Limited or any of its subsidiaries and associate companies (“Nuvam
Slide 56: Thank You
Thank You For more details refer data book published on our website. Click here to access. # Data Book Contents 1 Consolidated Performance 2 Segmental Performance - Wealth Management a) Nuvama Wealth b) Nuvama Private 3 Segmental Performance - Nuvama Asset Management 4 Segmental Performance - Nuvama
Nuvama Wealth Management — Q4 FY24 Earnings Presentation on 6ix