360 One Wam Limited · NSE:360ONE
360 One Wam — IIFL Wealth & Asset Management — Q1 FY21 Earnings Presentation
41 slides from 360 One Wam's earnings presentation, 2020
Slide 1: IIFL Wealth & Asset Management Quarterly Performance Review Q1 FY 21
IIFL WEALTH & ASSET MANAGEMENT Quarterly Performance Review Q1 FY 21 #1 Wealth Manager in India #1 Manager of Alternates in India Strictly Private and Confidential - Internal Circulation Only
Slide 2: Agenda
AGENDA BUSINESS HIGHLIGHTS Market Environment FINANCIAL SUMMARY STRATEGY UPDATE OTHER UPDATES ANNEXURES 2
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS FL WEALTH & ASSET MANAGEMENT
Slide 4: A Leader in Wealth Management & Alternates
A LEADER IN WEALTH MANAGEMENT & ALTERNATES #1 Wealth Manager in India #1 Manager of Alternates in India WEALTH MANAGEMENT ASSET MANAGEMENT • Discretionary • Alternate Investment Funds • Non-Discretionary • Discretionary Portfolio Management • Broking and Distribution Services • Mutual Funds • Corpor
Slide 5: IIFLWAM – Resilient During Covid
IIFLWAM – RESILIENT DURING COVID Prioritizing Health Enhanced Client Engagement Health & safety of all stakeholders – Continued close & impactful client employees, clients and others engagement, with multiple touchpoints Digitalization Operational Stability Digital tools & technological 90%+ workfor
Slide 6: Financial Summary
FINANCIAL SUMMARY FL WEALTH & ASSET MANAGEMENT
Slide 7: Business Summary
BUSINESS SUMMARY Q1 FY21 vs Q4 Q1 FY21 vs Q1 INR Cr FY 21 Q1 FY 20 Q4 FY 20 Q3 FY 20 Q2 FY 20 Q1 FY20 FY20 Closing AUM Annual Recurring Revenue Assets 73,155 62,595 70,434 64,016 63,530 17% 15% Transactional / Brokerage Revenue Assets 103,568 94,302 101,703 99,276 97,930 10% 6% Total AUM 176,723 156
Slide 8: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Continued focus on ARR assets – increase of 15% YoY to Rs 73,155 Crs AUM & Net • Significant momentum in IIFL One – continues to be biggest focus area. Assets increased Flows 13% QoQ to Rs 20,048 Crs; Net flows is Rs 1,270 Crs for Q1FY21 • AUM addition from L&T Wealth acqu
Slide 9: Key Business Highlights – AUM and Net Flow
KEY BUSINESS HIGHLIGHTS – AUM AND NET FLOW Assets Under Management (Rs. Cr.) Excluding Custody Net Flows including Custody1 Annual Recurring Revenue Assets Transactional / Brokerage Revenue Assets Less: Double counted assets 15,031 1,50,762 158,273 1,85,862 142,312 143,856 9,919 1,38,792 1,67,746 1,
Slide 10: Key Business Highlights – Revenue, Cost and Profitability
KEY BUSINESS HIGHLIGHTS – REVENUE, COST AND PROFITABILITY Revenues from Operations (Rs. Cr.) & Yields (%) QoQ Cost Mix (Rs. Cr.) Transactional / Brokerage Revenue 58.4% 61.4% 59.1% 91.9% 54.3% Annual Recurring Revenue Fixed Employee Costs Variable Bonus Costs 35 0 Retention on Revenue from Operation
Slide 11: Current Capital Allocation
CURRENT CAPITAL ALLOCATION Net Worth 3,090 Cr. Goodwill + Intangibles + Select Fixed Assets Wealth AMC 790 Cr. 1,900 Cr. 400 Cr. Goodwill & Intangibles On NBFC 1,400 Sponsor Capital In AIF 275 Acquisition of • WAI 251 Brokerage & Distb. 425 PMS + MF 70 • LT 244 • Others 22 IIFL One 75 IIFL Capital 5
Slide 12: Strategy Update
STRATEGY UPDATE FL WEALTH & ASSET MANAGEMENT
Slide 13: Strategy Update
STRATEGY UPDATE • Client sentiment remains cautious with an increasing bias to towards high quality debt and structured opportunities. With markets stabilizing low returns from fixed income instruments are resulting in clients being open to new ideas and opportunities • The IIFL One proposition cont
Slide 14: Wealth Update - Strong Momentum Towards ARR
WEALTH UPDATE - STRONG MOMENTUM TOWARDS ARR Annual Recurring Revenue Assets as a % of Total Assets DPMS NDPMS IIFL One Assets Annual Recurring Revenue Assets Advisory Basket AUM Transactional / Brokerage Revenue Assets Average Retention2 1 20% 30% 37% 40% 41% 20,048 287 8,714 17,720 20,048 3,631 12,
Slide 15: Wealth Update - High Employee Retention
WEALTH UPDATE - HIGH EMPLOYEE RETENTION RM Buildup2 60% of Team Leaders have more than 5 year vintage in IIFL Wealth Wealth - Teamleaders Wealth - RM 0-1 Years 316 350 299 5 300 268 250 1-3 Years 250 Weighted 12 34 average tenure 183 7+ Years 245 200 236 of all Team 189 204 Leaders is 150 100 129 6.
Slide 16: Wealth Update - Low Client Attrition and High Productivity
WEALTH UPDATE - LOW CLIENT ATTRITION AND HIGH PRODUCTIVITY No. of relevant families Client Attrition <2.5 % per annum2 18.9% 16.9% 17.7% 9.0% 8.4% 1.4% 0.87% 0.40% 0.52% 0.31% Total Existing Family count No of Clients Lost AUM lost as a % of Total AUM3 Total Relevant New Family count 4 6,2151 121 14
Slide 17: AMC Update – Focus on Core Strategies
AMC UPDATE – FOCUS ON CORE STRATEGIES Private Equity 1 Seed Stage 2 Early Stage 3 Pre-IPO ₹ 10,014 Cr Diversified Public Equity 4 5 Concentrated (UCITS and Domestic 6 Thematic ₹ 7,997 Cr Funds) Credit 7 8 Structured Credit Liquid Funds ₹ 3,040 Cr Other (Multi-asset) 9 10 Long Short Residential Debt
Slide 18: AMC Update – Key Focus Areas
AMC UPDATE – KEY FOCUS AREAS • We recently added a multi-asset long-short fund to our product platform Platform • We continue to evaluate other product ideas such as a quant fund, a solutions/asset allocation fund and an international fund • Focus on institutionalizing processes across functions Pro
Slide 19: AMC Update – Consistent Top Quartile Performance
AMC UPDATE – CONSISTENT TOP QUARTILE PERFORMANCE A snapshot of some of our Funds below depict significant benchmark outperformance, strengthening our foothold in the Top Quartile League 1 Month 3 Month 6 Month 1 Year 3 Year Fund / Scheme Name Asset Class 5 Year (%) (%) (%) (%) (%) (%) IIFL Focused E
Slide 20: Other Updates
OTHER UPDATES FL WEALTH & ASSET MANAGEMENT
Slide 21: Multiple Awards & Accolades
MULTIPLE AWARDS & ACCOLADES Proud Recipient of 109 Awards till date Best Private Banking Outstanding Wealth Mgmt Technology Services Overall – India 2020 Initiative -2019 Best Artificial Intelligence, 2018 Best Private Bank, India 2018 Best Private Bank, India Best Wealth 2019 Management App - 2019
Slide 22: Experienced Management Team with Deep Domain Expertise
EXPERIENCED MANAGEMENT TEAM WITH DEEP DOMAIN EXPERTISE Karan Bhagat 20+ years of experience WEALTH AMC CORPORATE FUNCTIONS Yatin Shah Anup Maheshwari Anshuman Maheshwary 24+ years of experience COO 16+ years of experience 20+ years of experience Anirudha Taparia Prashasta Seth Mihir Nanavati Unliste
Slide 23: Marquee Institutional Shareholding and Experienced Board
MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD Shareholding Split Lock in / Liquidity as on 30th June 2020 No Lock In Lock In (1 Yr) 21.35% 0.40% Promoters 14.06% 8.86%* 18.51% 0.34% General Atlantic - 21.35% Fairfax 18.51% - RIMCO 4.35% Other Institutions 13.29% 5.84% Promoters 22.92% Pub
Slide 24: Annexures
ANNEXURES FL WEALTH & ASSET MANAGEMENT
Slide 25: Detailed Financial Snapshot
DETAILED FINANCIAL SNAPSHOT 25
Slide 26: Consolidated Financials – Re Classified Result Table
CONSOLIDATED FINANCIALS – RE CLASSIFIED RESULT TABLE Quarter Ended Year Ended Particulars Jun 30, 2020 Mar 31, 2020 Jun 30, 2019 Mar 31, 2020 Mar 31, 2019 Fee based Income (A) 146 197 150 686 801 1. (iii) Fees and commission Income 137 218 124 678 806 1.(iv) Net gain / loss on fair value changes (Re
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Rs in Crs. As at As at As at As at ASSETS LIABILITIES AND EQUITY 30-Jun-20 31-Mar-20 30-Jun-20 31-Mar-20 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 868 936 (a) Derivative financial instruments 280 249 (b) Bank Balance other than (a) above 195
Slide 28: Breakdown of Investments
BREAKDOWN OF INVESTMENTS Jun 30, Mar 31, Jun 30, Mar 31, 2020 2020 2020 2020 Investments 6,509 6,654 Borrowings 8,203 9,095 Derivative financial instruments [1c] 74 132 Derivative Financial Instruments [1a] 280 249 Investments [1f] 6,435 6,512 Debt Securities [1c] 4,462 5,426 Borrowings (Other than
Slide 29: Break Down of Investments
BREAK DOWN OF INVESTMENTS Value as on 30th Value as on 31st % of Total Investment Type Category Description Jun 20 (in Cr) Mar 20 (in Cr) Investment Govt Securities Govt Securities 3,326 3,216 51% Structured Investments Perpetuals Various 329 839 5% Debentures Various 670 362 10% Structured Investme
Slide 30: Breakdown of Net Fund Based Incomes (QoQ)
BREAKDOWN OF NET FUND BASED INCOMES (QoQ) Rs in Crs. Average Q1 FY 21 Income Expense Net Capital Remarks Deployed 197 103 Average Capital Allocation Excluding Goodwill & Total Fund Based 93 2,635 Intangibles NIM on Loans 84 -32 53 1,488 NIM earned on Average Loans outstanding for the period These ar
Slide 31: Segment Deep Dive
SEGMENT DEEP DIVE FL WEALTH & ASSET MANAGEMENT
Slide 32: Business Segment View
BUSINESS SEGMENT VIEW Assets Under Management - YoY (Rs. Cr.) Assets Under Management - QoQ (Rs. Cr.)1 Wealth Management Asset Management 185,862 AMC Assets Distributed by Wealth 178,921 185,862 167,746 173,245 172,763 Custody Assets 160,034 27,589 160,034 28,159 27,589 130,981 31,145 21,243 24,702
Slide 33: Consolidated Metrics YoY
CONSOLIDATED METRICS YOY Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Annual Recurring Revenue Retention on Revenue from Operations Transactional / Brokerage Revenue Assets Transactional / Brokerage Revenue Less:
Slide 34: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Transactional / Brokerage Revenue Transactional / Brokerage Revenue Assets Annual Recurring Revenue Less: AMC Assets distributed by wealth + Lo
Slide 35: Consolidated Metrics YoY
CONSOLIDATED METRICS YoY Annual Recurring Revenue Assets (Rs. Cr.)1,2 Annual Recurring Revenues (Rs. Cr.) IIFL One Assets IIFL One Revenue4 Funds Managed by IIFL AMC Management Fees on Funds Managed by IIFL AMC Trail Commissions on Third Party Managed Funds 73,155 Trail Commission on Third Part Mana
Slide 36: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Annual Recurring Revenue Assets (Rs. Cr.)1,2 Annual Recurring Revenues (Rs. Cr.) IIFL One Assets Funds Managed by IIFL AMC IIFL One Revenue Management Fees on Funds Managed by IIFL AMC Trail Commission on Third Party Managed Funds Trail Commission on Third Party Managed Fund
Slide 37: Wealth Management
WEALTH MANAGEMENT AUM by Products YoY (Rs. Cr.) AUM by Products QoQ (Rs. Cr.) IIFL One Assets Managed Accounts Distributed Ret. on Rev from Operations Managed Accounts Distributed IIFL One Assets Ret. on Rev from Operations Management Fees on Funds Managed by IIFL AMC Brokerage Income Management Fee
Slide 38: Break Down of Loan Book
BREAK DOWN OF LOAN BOOK Loan Book Loan Spread 6,715 2.4% 1.9% 1.9% 4,798 1.4% 3,536 2,855 FY18 FY19 FY 20 FY 21 Q1 FY18 FY19 FY20 FY21 Q1 • Maintained 100% interest and margin servicing track record Q1 FY 21 Q4 FY 20 Q1 FY 20 despite RBI moratorium • Maintaining a low-risk book with focus on quality
Slide 39: Asset Management
ASSET MANAGEMENT AUM by Products YoY (Rs. Cr.) and Yield % AUM by Products QoQ (Rs. Cr.) and Yield % Discretionary Portfolio Management Schemes Alternative Investment Fund Discretionary Portfolio Management Schemes Alternative Investment Fund Mutual Fund 30,000 Ret. On Revenue from Operations 0.90%
Slide 40: Disclaimer
DISCLAIMER This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasin
Slide 41: Thank You
THANK YOU LIFL WEALTH & ASSET MANAGEMENT
IIFL Wealth & Asset Management — Q1 FY21 Earnings Presentation on 6ix