360 One Wam Limited · NSE:360ONE
360 One Wam — Q4 FY23 Earnings Presentation
47 slides from 360 One Wam's earnings presentation, May 4, 2023
Slide 1: Cover letter to stock exchanges on investor presentation
May 4, 2023 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Scrip Code: 54
Slide 2: Results Update - Q4 and Full Year FY23
Annexure I Results Update - Q4 and Full Year FY 23 360 ONE WAM Ltd. reported a Consolidated Profit After Tax of Rs 668 Crs for FY23 - up 14.8% YoY. Operating Profit Before Tax stood at Rs 847 Crs for the year - up 37.9% YoY. ARR Revenue is up 15.1% YoY at Rs 1,050 Crs for FY23, and up 5.3% YoY at Rs
Slide 3: Mr. Karan Bhagat, MD & CEO, 360 ONE WAM
Mr. Karan Bhagat, MD & CEO, 360 ONE WAM: • Global economic outlook continues to remain difficult mainly due to uncertainties fueled by ongoing geopolitical tensions and policy actions taken by central banks in response to a higher inflationary environment. Most global markets, including India, ended
Slide 4: 360 ONE Q4 and Full Year FY23
Annexure II 360 ONE Investor Presentation - Q4 and Full Year FY23
Slide 5: Agenda
AGENDA 1. Financial Performance - Q4 and Full Year FY23 2. Annual Update 3. 360 ONE Foundation and ESG Update 4. Other Updates 2 360 ONE
Slide 6: Business Summary
Business Summary Financial Performance - Q4 and Full Year FY23 3 360 ONE
Slide 7: Business Snapshot
Business Snapshot Wealth Management Total ARR Net Flows - INR 28k in FY23 Asset Management INR 109k cr / $13bn* ARR AUM ARR AUM INR 58k cr / $7.2bn* ARR AUM INR 167k cr INR 22.6k cr ARR Net Flows in FY23 INR 5.4K cr ARR Net Flows in FY23 TBR AUM INR 1,110 cr / $135 mn* INR 107k cr INR 455 cr / $55 m
Slide 8: Key Financial Highlights
Key Financial Highlights • Continued focus on Recurring Revenue Assets - FY23 ARR AUM up 15.7% YoY at Rs 1,67,174 Crs AUM • ARR Net flows stood at Rs 28,059 Crs for FY23 and Rs 5,937 Crs for Q4 FY23 • FY23 Total AUM2 is up 4.8% YoY at Rs 2,74,343 Crs • FY23 ARR Revenue is up 15.1% YoY at Rs 1,050 Cr
Slide 9: Consolidated Business Summary
Consolidated Business Summary Particulars (Rs. Crs.) Q3 FY 23 Q4 FY 23 QoQ % Q4 FY 22 YoY % FY 22 FY 23 YoY % AUM 2,75,134 2,74,343 - 2,61,745 4.8% 2,61,745 2,74,343 4.8% Annual Recurring Revenue Assets 1,66,494 1,67,174 - 1,44,432 15.7% 1,44,432 1,67,174 15.7% Transactional / Brkg Revenue Assets 1,
Slide 10: Segmental Business Snapshot - Annual
Segmental Business Snapshot - Annual ARR AUM ARR NET FLOWS ARR REVENUE ARR RETENTION Particulars (Rs. Crs.) FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Wealth Management 88,857 1,08,876 20,033 22,623 553 657 0.73% 0.70% Asset Management 55,574 58,298 11,957 5,435 359 393 0.73% 0.69% Totals 1,44,
Slide 11: Segmental Business Snapshot - Quarterly
Segmental Business Snapshot - Quarterly ARR AUM ARR NET FLOWS ARR REVENUE ARR RETENTION Particulars (Rs. Crs.) Q3 FY 23 Q4 FY 23 Q3 FY 23 Q4 FY 23 FY 23 Q3 FY 23 Q4 FY 23 FY 23 Q3 FY 23 Q4 FY 23 FY 23 Wealth Management 1,07,441 1,08,876 7,816 4,086 22,623 173 166 657 0.70% 0.65% 0.70% Asset Manageme
Slide 12: ARR AUM Build-Up
ARR AUM Build-Up Financial Performance – Q4 and Full Year FY23 9 360 ONE
Slide 13: ARR AUM Build-up - Across Business Segments and Asset Classes
ARR AUM Build-up - Across Business Segments and Asset Classes ARR AUM Build up - FY 23 Particulars (Rs. Crs.) Opening AUM Net Flows MTM* Closing AUM TOTAL ARR 1,44,432 28,059 -5,315 1,67,174 Wealth ARR 88,857 22,623 -2,604 1,08,876 360 ONE Plus 32,724 10,971 -1,388 42,307 Distribution Assets Earning
Slide 14: ARR AUM Segmental Snapshot - Wealth Management - Annual
ARR AUM Segmental Snapshot - Wealth Management - Annual ARR AUM Build up - FY 23 Revenue Build up - FY 23 PRODUCTS (Rs. Crs.) Opening AUM Net Flows MTM Closing AUM Average AUM Retentions Revenue TOTAL (ARR) 88,857 22,623 -2,604 1,08,876 94,447 0.70% 657 360 ONE Plus 32,724 10,971 -1,388 42,307 32,96
Slide 15: ARR AUM Segmental Snapshot - Wealth Management - Quarterly
ARR AUM Segmental Snapshot - Wealth Management - Quarterly ARR AUM Build up - Q4 FY 23 Revenue Build up - Q4 FY 23 PRODUCTS (Rs. Crs.) Opening AUM Net Flows MTM Closing AUM Average AUM Retentions Revenue TOTAL (ARR) 1,07,441 4,086 -2,651 1,08,876 1,03,592 0.65% 166 360 ONE Plus 40,594 2,532 -819 42,
Slide 16: ARR AUM Segmental Snapshot - Asset Management - Annual
ARR AUM Segmental Snapshot - Asset Management - Annual ARR AUM Build up FY 23 Revenue Build up FY 23 ASSET MANAGEMENT (Rs. Crs.) Opening AUM Net Flows MTM Closing AUM Average AUM Retentions Revenue TOTAL (ARR) 55,574 5,435 -2,711 58,298 56,629 0.69% 393 Discretionary Portfolio Manager 18,505 518 -38
Slide 17: ARR AUM Segmental Snapshot - Asset Management - Quarterly
ARR AUM Segmental Snapshot - Asset Management - Quarterly ARR AUM Build up Q4 FY 23 Revenue Build Up Q4 FY 23 ASSET MANAGEMENT (Rs. Crs.) Opening AUM Net Flows MTM Closing AUM Average AUM Retentions Revenue TOTAL (ARR) 59,053 1,851 -2,605 58,298 58,471 0.69% 100 Discretionary Portfolio Manager 19,54
Slide 18: Capital Efficiency
Capital Efficiency Financial Performance – Q4 and Full Year FY23 15 360 ONE
Slide 19: Capital Allocation & Dividend History
Capital Allocation & Dividend History Net Worth Consistent Dividend History Time period Rs. / share Tangible 2,522 Crs Total FY 21* 17.5 Wealth Management 571 Crs Total FY 22* 13.8 Total FY 23* 17.3 Lending 1,397 Crs Total FY 24 till date 4.0 Asset Management 236 Crs First Interim Dividend (May 2023
Slide 20: Guidance
Guidance Annual Update 17 360 ONE
Slide 21: Guidance - Driving ambitious growth and financial performance over FY24
Guidance - Driving ambitious growth and financial performance over FY24 FY23 FY23 FY24 Guidance Actuals Guidance FY 23 Actuals versus Guidance Net ARR flows (Rs Crs.) 30,000 28,059 40,000 • Strong performance on ARR Net Flows, Key input MTM % 6% -3% 6% Operating Revenues and Costs – leading to assum
Slide 22: Significant improvement in earnings' quality of our business
Significant improvement in earnings’ quality of our business P/L SUMMARY (Rs. Crs) FY20 FY21 FY22 FY23 Average ARR AUM 60,432 79,792 1,25416 1,51,076 ARR Retention 0.89% 0.73% 0.74% 0.78% Highlights: Annual Recurring Revenue 535 583 923 1,172 From FY20 to FY23: Transaction & Brokerage Income 385 333
Slide 23: Strategy: FY 2023-24
Strategy: FY 2023-24 Annual Update 20 360 ONE
Slide 24: 360 ONE - Well-positioned and poised for sustained, profitable growth
360 ONE – Well-positioned and poised for sustained, profitable growth Best positioned in one of the Best-in-industry recurring Disciplined capital management 1 most attractive global 2 revenue book and pioneering 3 and shareholder focus markets and sectors shift to fee-based advice • India remains o
Slide 25: India is one of the strongest macro growth stories globally
India is one of the strongest macro growth stories globally - We are in pole 1 position to benefit from some of the fastest growing sectors in India Macroeconomic growth Growing financialisation AIF, PMS and MF growth Avg. projected GDP growth (23-28) Managed investments (incl. insurance) in Rs. Lak
Slide 26: Clear market leaders in moving to a recurring revenue book
We are clear market leaders in moving to a recurring revenue book, with the 2 strongest delivery model to support this revenue mix Built the best Advisory and Alternate Asset …with a consistent shift to ARR Management proposition and delivery model… and strong pricing discipline ARR % of Total Opera
Slide 27: Disciplined stewards of capital with robust RoE and dividends
We are disciplined stewards of capital, and have an established track 3 record of generating robust RoE and consistent dividend distribution A compelling investment case Performance Metrics - FY23 Efficient and prudent use of capital 54% 26.7% 17.3 purely to support our core business Operating Tangi
Slide 28: Our journey has set us up for the next stage
Our journey has set us up for the next stage - to further build a resilient, high-growth business that responds to our client and market needs Well positioned for our Strategic next growth phase transformation of business model 2023 - … Building out our • Aggressive growth across proposition 2018 -
Slide 29: Three-pronged strategy of Growth, Resilience and Agility
We are strongly on course to execute our three-pronged strategy of Growth, Resilience and Agility Growth A Deepen existing relationships, expand our footprint, and build out the next segment, with our industry leading advisory and differentiated propositions B Build on India’s most comprehensive alt
Slide 30: Deepen client relationships, widen footprint, build new segments
A Deepen our client relationships, widen our footprint, and build out new segments using our traditional strengths, and a focused approach Growth drivers for the Wealth Deepen client Expand the Build the next business relationships footprint segment Richer understanding of our clients to Grow the bu
Slide 31: Growth in Alternates fueled by comprehensive platform
B Our growth in Alternates will continue to be fueled by our comprehensive platform strength, and our increasing traction with global institutions Building on our strength in focused asset management areas Leveraging our track record with institutional clients Private Equity Uniquely positioned from
Slide 32: Consolidate industry leadership position in Recurring Revenue assets
C Consolidate our industry leadership position in Recurring Revenue assets, and scaling up the product shelf and delivery support mechanisms 360ONE PLUS offering spectrum We’ve continued to build our ARR AuM at a tremendous pace….. We have built our solution suite from Advisory-to-Discretionary port
Slide 33: Deep client relationships and long-standing team members
D We have built deep client relationships that grow with us, and this is further helped by long-standing and experienced team members Client Vintage (FY23) Team Leader split by tenure (FY23) 11% 21% 17% 16% 0-3 years 0-3 years AUM - Count 3-5 years Relevant of relevant 3-5 years 64 Team 11% families
Slide 34: Strong values-driven culture
D We have a strong values-driven culture that embeds our shared vision and behaviours in the organisation for the long run Client-centric Entrepreneurial Right in spirit and letter Our single-minded We have extreme ownership We do what is right over what is focus is on our clients, always. from idea
Slide 35: Continuing our digital transformation journey
E We are continuing our digital transformation journey to bring the best experience to our clients, and tools and analytics to serve them Select Examples Customer Engagement Portfolio planning and Client reporting and Portfolio consolidation execution service Seamless digital onboarding Best-in-clas
Slide 36: Robust risk framework forms the foundation of all we do
Robust risk framework forms the foundation of all we do across our businesses Strong and comprehensive Clear definition of Constant review of internal ESG principles policy framework guides on responsibilities for efficient practices and controls vis-à-vis increasingly imbued the overall risk govern
Slide 37: 360 ONE Foundation and ESG
360 ONE Foundation and ESG 34 360 ONE
Slide 38: 360 ONE Foundation's Thematic Priority
360 ONE Foundation’s Thematic Priority Financial access and inclusion, as a lever to improve livelihoods In FY21, 360 ONE aligned itself with a strategic aim: Financial access and inclusion through the implementation of blended finance instruments; creating necessary bridges between the informal and
Slide 39: 360 ONE Foundation Journey: Innovative and Blended Finance Instruments
360 ONE Foundation Journey: Innovative and Blended Finance Instruments Progressing towards higher social returns Since FY22, we reimagined traditional grant-giving and adopted a catalytic approach to CSR with a vision to generate higher social returns by focusing on outcomes, fund recycling, unlocki
Slide 40: 360 ONE Foundation - Select programmes (FY23)
360 ONE Foundation - Select programmes (FY23) Partial Risk Guarantee & SSN - Returnable grants - Input and Pay for Outcomes & Co Pay - Education-related initiatives Livelihood generation through skill procurement support to paddy/ Employability & income benefitted over 20,000 students development pu
Slide 41: Holistic approach to ESG - Key Highlights
We are committed to a holistic approach to ESG - Key Highlights Progressing on the path of Environmental, Social and Governance (ESG) practices Environment Social Governance • 46,500 trees planted in Jharkhand as a part of • Over 75% employees were provided with • Conducted comprehensive Materiality
Slide 42: Other Updates
Other Updates 39 360 ONE
Slide 43: 150+ Awards and counting
150+ Awards and counting… 40 360 ONE
Slide 44: Marquee Institutional Shareholding and Experienced Board
Marquee Institutional Shareholding and Experienced Board Shareholding Split (as of March 31, 2023) Details of Key Shareholders (as of March 31, 2023) Promoters Promoters 22% Public 22% Institutions Public Shareholding 14% Institutional Shareholding 64% 64% 14% Bain Capital 25% Others 39% Board of Di
Slide 45: Link to download data book
Link to download data book Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. Contents of the Data Book: 1. Re-classified Result Table 2. Consolidated Data 3. Segmental – Wea
Slide 46: 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 47: Thank you
Thank you For any further information, please reach out to ir@iiflw.com 44 360 ONE