Angel One Limited · NSE:ANGELONE
Angel One — Q1 FY2022 Earnings Presentation
45 slides from Angel One's earnings presentation, Jul 15, 2021
Slide 1: Exchange cover letter: Investor Presentation
..:~ 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: ANGELBRKG Scrip Code: 5432
Slide 2: Angel One Q1 '22 Investor Presentation
A AngelOne Q1 ‘22 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel Broking Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securiti
Slide 4: Digitalization: A Key Driver
Digitalization: A Key Driver • • • • • • Clients’ Choice For Seamless Digital Access To Markets Using Digital Proprietary Digital Properties Experience Platforms Equity Commodity Currency Lending MFs Insurance Bonds Gold Data Science Approach Using AI & Superior Product & Service Offerings Trusted B
Slide 5: Q1 '22: Largest Listed Broking House In India
Q1 ‘22: Largest Listed Broking House In India • ._____ CEO with_Global Experience Redefining ______JH._____ _ Angel ___JH Expanding ._____ Product _ Bouquet Forward Integration _____JH._____ ______J • Narayan Gangadhar A. AngelOne Smar tore m Initiated process of regulatory 20+ years of global exper
Slide 6: Angel Broking Is Now Angel One
Angel Broking Is Now Angel One A. Angel Broking· A AngelOne 1996 – 2021 2021 Onwards \ Single Product Stock Broking as a predominant line of business .A One Solution Wealth Creation Throughout Lifespan \ Formal For Seasoned Investors and Traders .A Youthfulness New Age Clients + Most Competi
Slide 7: Technology Powered Business
Technology Powered Business Peak trades handled in Q1 ’22, demonstrating robust IT infrastructure 5.4 mn App downloads* 12.6 mn Technology Powered Avg. time taken to onboard clients 5 mins Direct clients on-boarded digitally 100% Orders executed online by direct clients 99% Orders placed through mob
Slide 8: Our Transformational Journey
.«\ A n g e lOne Our Transformational Journey
Slide 9: Successful Digital Transformation Leading To A Scalable And Profitable Business Model
Successful Digital Transformation Leading To A Scalable And Profitable Business Model Pre – 2015 2015-19 2019 Onwards Digital Model Physical Model • ZERO branches + Flat Pricing Physical + Digital Model • 180+ branches • 100% Digital Acquisition, On-boarding, Trade • Reduced Branches • Large team of
Slide 10: End-To-End And Advanced Digital Experience
End-To-End And Advanced Digital Experience Activations Daily Engagement Retentions Artificial Intelligence And Machine Learning Driven Client Engagement And Services Data science driven approach to micro-target many segments of diverse audience 5+ Digital channels of engagement with clients and help
Slide 11: Best In Class Product Suite
Best In Class Product Suite Seamless Experience Across Digital Platforms At Most Competitive Price Machine learning based advisory, ARQ Angel Broking Angel Broking Mobile App Web 11!!=1!1!1!!1 Straight through process for client on-boarding within minutes ₹0 For Equity Delivery. No Hidden Charges Ap
Slide 12: Leading Innovation: Through In-house Development
Leading Innovation: Through In-house Development Advantage For Educate Algo Beginners Angel Broking: A • Clients get access to latest fintech solutions Ready made • Eases trade execution for clients Thematic Smar tore m ► strategies for investment Fintech Partners: Novice Traders J,... • Platform to
Slide 13: Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ
Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ I I ,------------ I I I : ~~ I Provides equity investment advisory services A Alpha-generating algorithms based on multiple fundamental and quantitative : I ARQ I : .~ I I Provides superior risk-adjusted returns factors I I I I I I
Slide 14: Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients
Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients 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 possible with del
Slide 15: Huge Untapped Potential
.«\ A n g e lOne Huge Untapped Potential
Slide 16: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market Rising Penetration Of Demat Accounts In India Steady Growth In Demat Accounts In India (Mn) 14.0% CAGR Inflection Point 4.1% 62 55 3.1% 2.7% 41 2.4% 36 2.0% 2.1% 32 1.7% 1.7% 1.8% 25 28 21 22 23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY13 FY14 FY15 FY16 FY
Slide 17: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition Top 5 Digital Brokers Constitute 52% In Cumulative NSE Active Clients Base (Mn) ■ Top 5 Digital Brokers* ■ Others 22.4 Cumulative: 2.5x Growth 18.9 16.0 14.2 10.7 12.2 9.9 9.6 10.8 9.0 9.0 9.0 8.6 7.8 8.1 Top 5 Digital Brokers: 7.2 7.0 7.2 11.7 7.0 9.0 6.7x Grow
Slide 18: Digital Business Driving Exponential Growth For Angel
.«\ A n g e lOne Digital Business Driving Exponential Growth For Angel
Slide 19: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base Expanding Market Share In NSE Active Client Base 8.8% 1.9x Expansion In 8.3% 7.6% Market Share 7.1% 6.3% 4.9% 5.3% 4.8% 4.8% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Angel’s NSE Active Client Base (Mn) & Rank DDDDDDDDD 0.4 6t
Slide 20: Leading To Large Expansion In Retail ADTO Market Share Across Segments
Leading To Large Expansion In Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 20.8% 22.7% 16.1% 12.3% 5.9% 6.9% 8.2% 6.2x Growth 3.7% 4.7% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 F&O Market Share (%) 20.9% 22.9% 16.1% 12.1% 6.7% 7.8% 6.8x Growth 3.4% 4
Slide 21: Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities >93% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q1 ’22 (‘000) 1,204 82 Tier 1: 8.6x Growth 956 61 376 Tier 2: 13.3x Growth 550 511 349 a 48 39 347 231 37 197 188 746 Tier 3: 24.6x Growth 119 141 546 68 15 25 126 10
Slide 22: Digital Transformation Driving Strong Client Acquisition
Digital Transformation Driving Strong Client Acquisition 93% Of Gross Clients Added Under Flat Fee Plan 7% Traditional Plan 19% 20% 19% 10% 10% 10% 10% 29% (Driven by AP network) 90% 90% 90% 90% 93% 71% 81% 80% 81% Flat Fee Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Gross Client
Slide 23: Digital Business Drives Multifold Increase In ADTO Across Segments
Digital Business Drives Multifold Increase In ADTO Across Segments Flat Fee Dominates Overall ADTO Traditional Plan 16% 17% 7% 8% 27% 27% (Driven by AP network) 40% 54% 76% 93% 92% Flat Fee 73% 73% 84% 83% 60% 46% 24% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Strong Growth In Ov
Slide 24: Strong Growth In Client Activity Across Segments
Strong Growth In Client Activity Across Segments Growth In Cash Segment Growth In F&O Segment Growth In Commodity Segment 80 70 - Cash ADTO (₹ Bn) 98 103 No. Of Trades (Mn) 105 111 120 5,000 4,500 - F&O ADTO (₹ Bn) No. Of Trades (Mn) 131 140 80 120 70 - Commodity ADTO (₹ Bn) 8 No. Of Trades (Mn) 9 8
Slide 25: Financial Highlights
.«\ A n g e lOne Financial Highlights
Slide 26: Q1 '22: Key Highlights
Q1 ‘22: Key Highlights 28% 21% 14% ₹ 12,189 mn QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover QoQ Growth in Number of Trades Average Client Funding Book for Q1 ‘22 ₹ 4,745 mn ₹ 1,663 mn ₹ 1,622 mn ₹ 1,214 mn 13.3% QoQ Growth in Gross Revenues 13.6% QoQ Growth in EBDAT 14.0% QoQ Gr
Slide 27: Impact Of New Margin Regulations
Impact Of New Margin Regulations Implementation Timeline Average Monthly Net Broking Income % of Peak (₹ Mn) r------------ 685 708 Phases Implementation Margin 596 • Moderate impact of phase 3 of new margin Phase I 25% Dec’20 – Feb’21 434 443 339 regulations on net broking income Phase II 50% Mar’21
Slide 28: MTF Book Spread Over Wide Customer Base
MTF Book Spread Over Wide Customer Base MTF Book Size Low Per Client Exposure MTF Book Segmentation (₹ Mn) (₹) 66,233 ■ <₹ 0.1mn ■ ₹ 0.1-0.5mn >₹ 0.5mn 64,068 13,945 1.9% 2.6% 2.6% 7.3% 7.1% 6.9% 50,899 10,535 7,687 90.8% 90.3% 90.4% Q1 '20 Q4 '21 Q1 '22 Q1 '21 Q4 '21 Q1 '22 Q1 '21 Q4 '21 Q1 '22 NIL
Slide 29: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix ■ Gross Broking ■ Interest Depository ■ Distribution ■ Other 3% 4% 4% 4% 4% 5% 8% 9% 10% 1% 1% 1% 2% 1% 1% 1% 1% 1% 4% 4% 22% 5% 20% 5% 16% 7% 17% 7% 14% 7% 6% 6% 28% 24% 15% 15% 63% 66% 69% 69% 72% 70% 70% 68% 68% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '2
Slide 30: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Split (4.0 mn clients added since April’19) ■ <2 years ■ 2-5 years □ >5 years 2,055 1,788 200 1,303 1,329 182 343 Digitization 1,016 170 151 321 journey started 633 646 700 755 150 276 260 in April 2019 is 98 97 107 121 239 1,5
Slide 31: Rapidly Growing Digital Business Contributes To Majority Of Net Revenue
Rapidly Growing Digital Business Contributes To Majority Of Net Revenue Declining Contribution Of Traditional Plan Net Broking Revenue, In Total Net Revenue (Traditional Plan Net Broking Revenue / Total Net Revenue) 50% 45% 42% 35% 33% 28% 22% 17% 15% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21
Slide 32: Technology Adoption: Enhancing Quality And Scalability
Technology Adoption: Enhancing Quality And Scalability I Right Sizing Overall Employee Base Scaling Up Digital Focused Talent Pool I I I I I I I 8% Decline (Nos) I I (Nos) 3,428 I I 567 3,146 I I 2,839 2,733 2,787 2,908 I I 496 2,503 2,401 2,470 I I I 450 I I I 388 I 358 369 343 I I I 335 330 I I I
Slide 33: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT Consolidated EBDAT Margin (₹ Mn) 11.6x I I I I 49% 49% 49% 49% 1,663 I 43% 39% I 1,463 I I 36% 30% I 1,093 I 1,043 I I I 696 I I 421 492 I 12% 340 I I 144 I I I I I Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1
Slide 34: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Gross Revenues Profit After Tax Includes tax ■ Gross Broking ■ Interest Income Other TTM PAT: ₹ 3,712 mn impact of ₹ 36 mn +13% for earlier years Despite 6% lesser +19% +33% trading days 4,745 +29% \ -1% 4,189 807 +39% 1,214 721 1,020 +55% +24% 709 -2% 3,179
Slide 35: Financial Snapshot
Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 2,466 4,745 31.4% 41.6% 57.0% 807 1,214 709 290 395 51.2% 483 3,229 1,781 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Q1 '21 Q1 '22 Return on Average Equity; Q1 RoE Annualised ■ Gross Broking ■ Interest Income Other □ *Q1 ’22 Networth incl
Slide 36: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q1 FY22 Q4 FY21 Q1 FY21 FY21 FY20 (a) Interest Income 633 545 349 1,769 1,577 (b) Fees and commission income 3,889 3,488 2,032 10,778 5,644 (c) Net gain on fair value changes 104 53 3 89 25 Total Revenue from operations (I) 4,627 4,0
Slide 37: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Jun'21 Mar'21 Financial Assets (a) Cash, cash equivalents and Bank Balance 39,609 18,774 (b) Trade Receivables 650 2,277 (c) Loans 14,774 11,285 (d) Investments 63 55 (e) Other financial assets 1,747 14,289 Non-financial Assets (a) Fixed Asset
Slide 38: Way Forward
Way Forward ,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 investment in mobile p
Slide 39: About Us
.«\ A n g e lOne About Us
Slide 40: Board Of Directors
Board Of Directors Dinesh D. Thakkar Ketan Shah Anisha Motwani Promoter, Chairman and MD Whole-time Director Independent Director • 28+ years of experience in diverse industries • Promoter of Angel Group • 26+ years of overall experience • Worked for GM India, Max New York Life Insurance, • Veteran
Slide 41: Experienced Management Team
Experienced Management Team Narayan Gangadhar Vineet Agrawal Nilesh Gokral Prabhakar Tiwari Chief Executive Chief Financial Chief Operations Chief Growth Officer Officer Officer Officer • MS in Computer Science • C.A., C.S., I.C.W.A • B.E. (Mechanical), MBA - IIM-B • B.E. (Mechanical), MBA - VJTI •
Slide 42: 4th Fastest Growing App In Finance Category
4th Fastest Growing App In Finance Category India Mobile App Stats: 2020 ,- -, ,- -, ,- -, India is the 2nd largest I I I I I I I I I I I I I 24.27 bn I I US$ 0.50 bn I I 650.66 bn I I I I I I I market Globally in App downloads Consumer spend on apps Hours spent I I I I I I : I I I : I I I : I I I t
Slide 43: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Best Financial Services API - Finserv l N •• ., WINNER GI // b,BI Best Financial Content in Financial r OJ:OJ: ~ _ 1!!01!!1 Olvlhil-•tlntf:•(elleOK•ln: 2021 Award for Smart API by Inflection Awards (backed by .~'.:-~- A =.i"' V- Services for An
Slide 44: Consistently Certified By The Great Place To Work
Consistently Certified By The Great Place To Work Certified By The Great Place To Work Institute For Five Consecutive Years 2017 2018 2019 2020 2021 N . . .... ' ~~·""--·-"' n.. ■ oocffldftli.o Anjtc:!lkekir,e;....._Uml-i (;_Plooi:.,'MH l--.,lndoo....i ■ ttr..w••ar-~ ,,_-"'-,.,._,(...,. Af>ril•n • M
Slide 45: Company and Investor Relations Advisors
Company : Investor Relations Advisors : Angel Broking Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Email Id – hitul.gutka@angelbroking.com shogun.jain@sgapl.net / shrikant.sangani@sga