Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Investor Presentation (September 2023)
45 slides from Nuvama Wealth Management's investor presentation, September 2023
Slide 1: Company Overview
NUVAMA Company Overview September 2023
Slide 2: Contents
Contents 1 2 3 4 5 WHO WE INDIA WEALTH OUR OVERALL WAY ARE OPPORTUNITY BUSINESSES PERFORMANCE FORWARD 2
Slide 3: 1. Who We Are
1. WHO WE ARE ▪ Strong institutional ownership: PAG (promoter of company), one of the largest Asia-based alternative investment managers 2. INDIA WEALTH OPPORTUNITY ▪ Integrated wealth management platform with exhaustive suite of offerings 3. OUR BUSINESSES ▪ Only established player with proven exec
Slide 4: About Nuvama
ABOUT SERVING Nuvama UHNI & Family Offices HNI & Affluent Individuals Client-first Corporates & Institutions foundation WELL SCALED Client Assets of ₹ 2.3 trillion WIDE PRESENCE 1,000+ RMs 2,700+ employees across 90+ offices STRONG GOVERNANCE UNIQUE PROPOSITION Experienced board and Multi Client Seg
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 USD50B of assets under management in private equity, real assets, credit & markets ASSETS UNDER MANAGEMENT 1 OFFICES IN ASIA 2 TOTAL EMPLOYEES USD50B+ 10 600+
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 3rd Party Proprieta
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 DELIVER LONG-TERM 3. TRANSITIONED SMOOTHLY, VALUE WITH PAG AS THE PROMOTER OPERATING WITH INDEPENDENT 2. GLOBAL PARTNERSHIP BOARD, GOVERNANCE, VALIDATING PLATFORM STRENGTH OPERATI
Slide 8: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Culture Client Established Only scaled Wealth Managers High Boutique player in UHNI and Private Family Banks both client Offices segments RM / Client Orientation with High Domestic Banks Networth “Full Platform” & Affluent capabilities 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 UHNI Households 70-75% of total financial HNI & AFFLUENT ~30 lacs 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 DIVERSIFIED REVENUE STREAMS NET REVENUE ACROSS SYNERGISTIC SEGMENTS Wealth & Asset ₹ 1,575 ₹ 1,016 Management ₹ 1,322 +19% leading the growth ₹ 750 +32% ₹ 998 ₹ 484 ₹ 381 ₹ 347 ₹ 333 ₹ 167 ₹ 171 ₹ 158 ₹ 68 - ₹ 20 FY21 FY22 FY23
Slide 11: Unique business model enabling seamless client solutioning
UNIQUE BUSINESS MODEL, enabling value and seamless client solutioning across ecosystem Family Offices UHN Individuals UHN Small & Medium Business Owners HN Individuals Advisory & Unique Research Products Corporate Affluent & Institutions Referrals & Client Individuals Distribution Insights ONE NUVAM
Slide 12: 2. India Wealth Opportunity
1. WHO WE ARE ▪ India's financial services sector has secular tailwinds 2. INDIA WEALTH o Financial wealth would continue to grow rapidly OPPORTUNITY o Investment asset class will grow even faster 3. OUR BUSINESSES o Rising formal penetration will multiply the opportunity 4. OVERALL PERFORMANCE ▪ Ma
Slide 13: Wealth management in India is nascent 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 Wealth
Slide 14: 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 India to become Mutual Funds 20% 16% 116% the 4th largest private wealth AIF 70% 1% 13% market globally Insurance 13% 4% 11% 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: 3. Our Businesses
1. WHO WE ARE ▪ Wealth Management 2. INDIA WEALTH OPPORTUNITY o Nuvama Private 3. OUR BUSINESSES o Nuvama Wealth 4. OVERALL ▪ Asset Management PERFORMANCE 5. WAY FORWARD ▪ Capital Markets 16
Slide 17: Nuvama Private
Nuvama Private Sub titleUltra High Networth Clients Serving 17
Slide 18: Amongst top independent private wealth players
Amongst top 2 independent private wealth players 2,900+ Families ₹ ~1,24,000 cr 1,21,000 Client cr. ₹ 442 cr AUA Assets Net Revenue 53 ~120 +29% YoY NPS Client + 14 pts YoY Relationship Bankers 1. All figures are as on 31st Mar’23 or for period FY23 18
Slide 19: Our Strategic Advantage
Our Strategic Advantage 1. Differentiated Platform to gain clients mind share 2. Well scaled and high-quality team 19
Slide 20: Differentiated platform to gain clients mind share
DIFFERENTIATED PLATFORM to gain clients mind share CLIENT NEEDS VALUE PROPOSTION Grow & A Preserve wealth Management Asset B ✓ Solution oriented Income Generation approach - Fulfil all Tax Efficiency client goals ✓ Integrated, Superior Financing and multi-product suite - Business monetization CLIENT
Slide 21: Differentiated platform to gain clients mind share
DIFFERENTIATED PLATFORM to gain clients mind share Asset o Offering unique products, powered by deep insights from wealth clients A) Management o Addressing client needs / gaps in the market with proven track record o Enabling acquisition and enhancing wallet share of high-quality UHNI clients B) Le
Slide 22: Well scaled and high-quality team
Well SCALED and HIGH-QUALITY team Wide Robust Delivering Coverage and Scaling Engagement Best-in-class Outcomes Team Leader Vintage ₹ 4,000 cr Client Assets 120 10% per team leader Client Relationship Bankers 17% Including 73% 100 30 Families > 5 Years 3-5 Years 0-3 Years Team Leaders per team leade
Slide 23: Nuvama Wealth
Nuvama Wealth Serving Affluent and High Networth Clients Sub title 23
Slide 24: Leading pure wealth management player in Affluent and HNI segment
One of the leading pure wealth management player in Affluent and HNI client segment 1+ million Affluent and HNI clients ₹ ~56,000 cr ₹ 574 cr 78 1,21,000 cr. Net Revenue NPS Client AUA Assets +40% YoY + 4 pts YoY ~900 Relationship Managers 1. All figures are as on 31st Mar’23 or for period FY23 24
Slide 25: Our strategic advantage
Our strategic advantage 1. Large and under 2. Scaled and differentiated serviced client platform segment 3. Proven engine for RM acquisition and growth 5. Unique and innovative 4. Unique hybrid fulfilment products through in-house model of technology + RMs Asset Management 25
Slide 26: Scaled and differentiated platform
SCALED and DIFFERENTIATED platform While numerous players are now competing for this segment, a category with high barriers to scale and succeed, we are one of the leading non-bank pure wealth managers catering to these clients Multi Product Hybrid Delivery Access Across Well Scaled Suite Channel Wi
Slide 27: Proven engine for RM acquisition and growth
Proven engine for RM ACQUISITION and GROWTH Solid Robust Delivering Team Client Engagement Best-in-class Outcomes Total Customers and % engaged Wide sales coverage. Engaged Others Demonstrated ability to attract talent 7.1 lacs 25% FY21 75% ₹ 60 cr ~900 Relationship Managers 8.5 lacs 22% Client Asse
Slide 28: Asset Management
Asset Management Sub title 28
Slide 29: Focused and high-performing alternatives asset management business
Focused and high-performing alternatives asset management business Active Strategies ₹ 68 cr 1. Private Equity Net Revenue 2. Venture Debt 3. Listed Equity ₹ 5,500+ cr 3,000+ AUM 2 Investors 1. All figures are as on 31st Mar’23 or for period FY23 unless mentioned otherwise 2. Average fee-paying AUM
Slide 30: Our strategic advantage
Our strategic advantage 01 02 03 04 Customer Ability to Scale with Proven Fund Digital Insights Speed Management Platform Capabilities ▪ Differentiated products ▪ Wealth management led rapid ▪ Best-in-Class performance ▪ Significant operating leverage: powered by deep insights from scale-up of asset
Slide 31: Capital Markets
Capital Markets Sub title 31
Slide 32: Market dominant capital markets franchise
Market dominant capital markets franchise Asset Services Institutional Equities and Investment Banking ₹ 158 cr 450+ ₹ 44,000 ₹ 333 cr 700+ 260+ Net Revenue Custody Net Revenue Institutional Companies under Client Assets in cr FY23 Clients FY23 Clients Research Coverage ▪ World class asset services
Slide 33: 4. Overall Performance
1. WHO WE ARE ▪ Continued focus on scale and quality 2. INDIA WEALTH ▪ Resulting in strong performance over years OPPORTUNITY ▪ Diversified and resilient revenue streams 3. OUR BUSINESSES o Wealth and Asset Management today constitutes 4. OVERALL ~70% of earnings PERFORMANCE ▪ Consistently deliverin
Slide 34: Continued focus on scale and quality
Continued focus on SCALE and QUALITY Client Assets - ₹ cr CAGR : 17% Diversified base with superior access to all asset classes 2,30,000 Wealth 2% 2,13,000 Management 1,80,000 7% 14% 1,67,000 45% Asset 14% Management 5,500 Started in FY21-22 17% Equity Managed Products Asset Services 44,000 Fixed In
Slide 35: Resulting in strong performance over years
Resulting in STRONG performance over years Net Revenue - ₹ cr CAGR : 26% Resilient revenue streams, spread across wealth solutions Wealth 1,575 Management 1,016 4% 15% 27% 1,322 Asset 998 Management 68 17% 19% 18% Asset Services 158 Managed Products Fixed Income IB & IE 333 Equities NII FY21 FY22 FY
Slide 36: Consistently delivering value to shareholders
Consistently delivering VALUE to shareholders Client Assets - ₹ cr Net Revenue - ₹ cr Operating PAT - ₹ cr CAGR : 17% CAGR : 26% CAGR : 36% 2,30,000 368 2,13,000 1,575 1,322 292 1,67,000 998 200 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Numbers have been rounded off for presentation purposes 1. N
Slide 37: Quarterly Update: Q1 FY24
Quarterly Update: Q1 FY24 Client Assets - ₹ cr Net Revenue - ₹ cr Operating PAT - ₹ cr YoY: 25% YoY: 19% YoY: 74% 2,56,000 440 118 417 2,30,000 2,05,000 349 95 55 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Numbers have been rounded off for presentation purposes 1. Net revenue & O
Slide 38: Won accolades across credible platforms
Won accolades across credible platforms Select Awards and Recognitions Best for Discretionary Best Domestic Best Private Bank, Portfolio India, Highly Best Private Bank, Private Bank, Management in Commended India India India Asiamoney Private Asian Private Banker The Asset Triple A Global Private B
Slide 39: 5. Way Forward
1. WHO WE ARE ▪ Necessary fundamentals in place 2. INDIA WEALTH OPPORTUNITY ▪ Adequately capitalized to achieve future goals 3. OUR BUSINESSES ▪ Well defined trajectory for each segment 4. OVERALL PERFORMANCE 5. WAY FORWARD 39
Slide 40: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS OUTCOME Nuvama Private Client Client Strengthen acquisition deepening platform In 5 years grow clients 1. Grow Wealth and client assets Nuvama Wealth Management by 2-2.5x Increasing Strengthening Product RM and
Slide 41: 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 Ltd. or any of its subsidiaries and associate companies (“Nuvama”)
Slide 42: Appendices
Appendices a nuvama
Slide 43: Appendix 1: Shareholding post demerger
Appendix 1: Shareholding post demerger Edelweiss Group, 13.7% Nuvama Wealth Institutional Management Limited and Retail PAG, Shareholding % shareholders, 56.2% 30.0% 43
Slide 44: Appendix 2: Bridge to financial statements
Appendix 2: Bridge to financial statements FY23 Q1FY24 # Particulars - ₹ cr As per Non- As per Non- Financial Netting Carve In Carve Out (3) recurring Adjusted Financial Netting Carve In Carve Out (3) recurring Adjusted (1) (2) (1) (2) Statements Exp (4) Statements Exp (4) A Revenue 2,230 -724 69 -
Slide 45: Appendix 3: Our Board
Appendix 3: 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 Chairman & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nom
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