Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q1 FY25 Earnings Presentation
56 slides from Nuvama Wealth Management's earnings presentation, Jul 1, 2024
Slide 1: Investor Presentation Q1 FY25
NUVAMA Investor Presentation Q1 FY25 1
Slide 2: Contents
Contents 1 2 3 4 About Us Industry Performance Strategy Landscape Overview 2
Slide 3: Contents Summary
Contents Summary ▪ Strong institutional ownership: PAG (promoter of company), 1. ABOUT US one of the largest Asia-based alternative investment managers ▪ Integrated wealth management platform with exhaustive 2. INDUSTRY suite of offerings LANDSCAPE ▪ Only established player with proven execution acr
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 ~ ₹ 3.9 trillion 3,200+ employees across 90+ offices 1,250+ 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 ~USD 55B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 1 ~USD 55B 8 770+
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 constituting 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 % are YoY +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 -
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: Focused execution delivering strong and sustainable outcomes
Focused execution delivering STRONG AND SUSTAINABLE OUTCOMES All figures are in ₹ Cr CLIENT ASSETS REVENUES 3,45,957 2,063 1,575 2,12,993 2,31,079 CAGR 1,322 CAGR 1,58,645 30 % 27 % 998 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PAT COST TO INCOME 597 73% 70% 69% CAGR 62% 368 200 292 44 % 11
Slide 13: Contents Summary
Contents Summary ▪ India's financial services sector has secular tailwinds 1. ABOUT US o Financial wealth would continue to grow rapidly o Investment asset class will grow even faster 2. INDUSTRY LANDSCAPE o Rising formal penetration will multiply the opportunity ▪ Making India’s wealth industry a s
Slide 14: In India wealth management is at a nascent stage
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 ~3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India Ma
Slide 15: Investment asset class 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 15
Slide 16: 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 17: Contents Summary
Contents Summary ▪ Revenues: Q1 FY25 stood at ₹ 668 Cr, grew by 60% YoY 1. ABOUT US ▪ Operating PAT: Q1 FY25 stood at ₹ 221 Cr, grew by 133% YoY ▪ Wealth and Asset Management businesses continues to 2. INDUSTRY witness secular growth, Q1 FY25 revenues grew by 18% YoY. LANDSCAPE Capital Markets busin
Slide 18: Consolidated Performance Q1 FY25
Consolidated Performance Q1 FY25 18
Slide 19: Business Summary: Q1 FY25
Business Summary: Q1 FY25 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,850+ 1,250+ ₹ 2,74,124 Cr Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange Traded
Slide 20: Business Summary: Q1 FY25
Business Summary: Q1 FY25 All figures are in ₹ Cr STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES REVENUES COST TO INCOME 668 70% YoY 56% YoY 417 60 % 14 % Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 OPERATING PAT RETURN ON EQUITY 29.4% 221 YoY YoY 95 133 % 16.5% 13 % Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 20
Slide 21: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 ▪ Client Assets: Q1 FY25 stood at ₹ 3,89,041 Cr, grew by 50% YoY o Nuvama Wealth client assets stood at ₹ 87,842 Cr, grew by 45% YoY. Growth in net flows led by MPIS assets CLIENT ASSETS o Nuvama Private client assets stood at ₹ 1,86,282 Cr, grew by 31% YoY. ARR assets grew f
Slide 22: Key Highlights: Q1 FY25
Key Highlights: Q1 FY25 ▪ Total Cost: Q1 FY25 stood at ₹ 374 Cr, grew by 28% YoY o Staff costs: ₹ 279 Cr in Q1, grew by 34% YoY COST • Added 350+ RMs in last 12 months, aligned with the growth strategy to scale and deepen presence • Increase in variable cost provisions in line with revenue growth o
Slide 23: Consolidated Performance: Q1 FY25
Consolidated Performance: Q1 FY25 Particulars – All figures are in ₹ crores Q4 FY24 Q1 FY25 Q1 FY24 YoY FY23 FY24 YoY Total Revenue 1 596 668 417 60% 1,575 2,063 31% Wealth Management 330 320 272 18% 1,016 1,188 17% Asset Management 17 15 13 23% 2 68 63 34% 2 Capital Markets 248 331 131 153% 489 805
Slide 24: Capital Management Strategy
Capital Management Strategy: Focused on driving growth & creating long-term shareholder value CAPITAL MANAGEMENT PRINCIPLES IMPROVING SHAREHOLDER RETURNS DIVIDEND 1. Disciplined capital management Return on Equity (RoE) Board declared to maximize profitability and RoE 23.6% dividend of 2. Investment
Slide 25: Segmental Summary: Q1 FY25
Segmental Summary: Q1 FY25 Wealth Management Asset Management Capital Markets 25
Slide 26: Nuvama Wealth: Introduction
Nuvama Wealth: Introduction One of the leading wealth managers in Affluent and HNI client segments Well scaled Wide presence across India ₹ 87,842 Cr of client assets 1,150+ RMs and ~7,000 Active External Wealth Managers (EWM) ~1.2 million clients. ~20% serviced by RMs & External Wealth Managers Cov
Slide 27: 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 28: Nuvama Wealth: Journey over years
Nuvama Wealth: Journey over years All figures are in ₹ Cr CLIENT ASSETS REVENUES 77,930 669 574 50,889 52,575 CAGR 409 CAGR 33,018 33 % 275 35 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PBT COST TO INCOME 231 90% 80% 177 69% 65% CAGR 84 106 % 25 % 26 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24
Slide 29: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) By Solutions By Channel +23% MPIS NII Relationship Manager External Wealth Manager +13% Brokerage Others 189 64 154 40% 56 50% 74% 72% 27% 26% 22% 14% 26% 28% 9% 11% Q1 FY24 Q1 FY25 Q1
Slide 30: Nuvama Wealth: Invested to grow, increased RMs
THE IMMENSE UNTAPPED OPPORTUNITY Nuvama Wealth: Invested to grow. Increased RMs by 350+ or 40% and onboarded 2,000+ EWMs in last 12 months deepening our presence to further penetrate in this under serviced Affluent & HNI Households prefer Rising affluence Democratisation of Capital Markets generatin
Slide 31: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (₹ Cr) MPIS Net New Money (₹ Cr and YoY) +45% MPIS Loan Broking Others 87,842 1,652 -16% 18,709 24,960 +33% 60,726 1,384 3,064 2,747 38,063 58,968 890 1,167 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY
Slide 32: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled High-quality team ₹ 1,86,282 Cr of client assets 118 relationship managers 3,850+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score of 65 Fa
Slide 33: 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 Family Offices Facilitate opportunities in VC, IB, Investment Policy Statement (
Slide 34: Nuvama Private: Journey over years
Nuvama Private : Journey over years All figures are in ₹ Cr CLIENT ASSETS REVENUES 1,69,904 519 1,29,391 442 1,19,540 98,570 CAGR 341 CAGR 20 % 210 35 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 OPERATING PBT COST TO INCOME 185 85% 159 65% 64% 64% * 119 CAGR 32 79 % 21 % FY21 FY22 FY23 FY24 FY21 FY22
Slide 35: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr And YoY) From ARR Earning Assets +11% From Transactional Assets 7% 131 41 38 118 64% 63% 36% 37% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1. Revenues grew by 11% YoY, absorbing impact of
Slide 36: Nuvama Private: Invested to grow
THE IMMENSE OPPORTUNITY Nuvama Private: Invested to grow. Increased RMs by ~15%, improved penetration at existing cities and added 4 new cities beyond tier 1 in last 12 Booming tech months to serve UHNI client segment ecosystem, Growth of the Next Monetization of promoter stakes, Accretion of Wealth
Slide 37: Nuvama Private: Full stack offshore wealth platform
VALUE PROPOSITION Nuvama Private: Leverage onshore capabilities to establish a full stack offshore wealth platform India to Offshore 1. Serve large Indian families looking to create an offshore hub or those who already have an addressable offshore wealth pool India to Offshore 2. Serve existing UHNI
Slide 38: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (₹ Cr) 1 Net New Money (₹ Cr and YoY) 1 ARR Earning Assets +31% Transactional Assets +45% 1,86,282 3,985 26,126 38,667 +48% 1,42,305 2,753 91,753 1,23,163 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY2
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 ₹ 7,692 Cr Private Markets + Public Markets + Commercial Real Estate 81% 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: Journey over years
Nuvama Asset Management: Journey over years ASSETS UNDER MANAGEMENT REVENUES EX-CARRY 6,967 49 5,581 37 CAGR CAGR 3,856 34 % 20 59 % FY22 FY23 FY24 FY22 FY23 FY24 FEE PAYING AUM NO OF STRATEGIES 5,495 7 3,912 CAGR 3,001 35 % 2 3 FY22 FY23 FY24 FY22 FY23 FY24 41
Slide 42: 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) +30% +44% +23% 15 7,692 6,239 12 5,914 4,327 Q1 FY24 Q1 FY25 Yield on Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 average fee-paying 1.01% 0.89% assets 1. Management
Slide 43: Nuvama Capital Markets: Journey over years
Nuvama Capital Markets: Journey over years CLIENT ASSETS – ASSET SERVICES REVENUES – ASSET SERVICES 91,156 329 CAGR CAGR 167 171 25 % 43,532 158 50 % 38,708 27,056 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 REVENUES – IE & IB OPERATING PBT CAGR 476 376 389 ASSET SERVICES 33 % 336 331 CAGR 206 211 12 %
Slide 44: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) +153% Asset Services 331 Institutional Equities and Investment Banking 494% 192 34% 40% 131 66% 60% 32 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 1. Capital Markets revenu
Slide 45: Won accolades across credible platforms
Won accolades across credible platforms Select Awards and Recognitions Q1 FY25 Great Indian BSFI Outstanding Best Private Bank – Search Engine Best - BSFI Achievement by CEO India Marketing of the of a Private Bank – Year South Asia 4th Edition of BFSI Digital BW - Merit Awards 2024 Global Private B
Slide 46: Contents Summary
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place ▪ Adequately capitalized to achieve future goals 2. INDUSTRY LANDSCAPE ▪ Well defined trajectory for each segment 3. PERFORMANCE OVERVIEW 4. STRATEGY 46
Slide 47: 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 ~USD 55 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehensive
Slide 48: 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 48
Slide 49: 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 50: 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 51: 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 52: ESG initiatives: Updates until Q1 FY25
We continue to make progress through ESG initiatives: Updates until Q1 FY25 Environment Social Governance o US GBC Gold certified head office for o ISO 27001 for information security o Published first BRSR report for FY24 interior designing management system o Aligning our approach towards ESG and o
Slide 53: Annexures
INalatsy.lisys “~ nuvama
Slide 54: Annexure 1: Our Board
Annexure 1: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nominee Direc
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, associate companies and joint
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 — Q1 FY25 Earnings Presentation on 6ix