360 One Wam Limited · NSE:360ONE
360 One Wam — Q3 FY21 Earnings Presentation
33 slides from 360 One Wam's earnings presentation, Feb 2, 2021
Slide 1: Exchange cover letter: results update and investor presentation
llFL WEALTH February 2, 2021 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Bandra Dalal Street, - l<urla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 0
Slide 2: Results Update – Q3 FY 21
Results Update – Q3 FY 21 IIFL Wealth Management Ltd reported a Consolidated Profit After Tax of Rs 97 Crs for the quarter, up 12% QoQ and 28% YoY and Rs 267 Crs for the 9-month ended, up 29% YoY. Net Revenues stood at Rs 280 Crs for the quarter, up 13% QoQ and 14% YoY and Rs 766 Crs for the 9-month
Slide 3: Management commentary, interim dividend and contact
Though net flows across the industry continue to be weak, especially in mutual funds, we remain confident of reaching our healthy net sales AUM target for the current financial year. Our focus continues to be on growth of the core business, along with optimization of costs and effective rational
Slide 4: Quarterly Update Q3 FY 21
IIFL WEALTH & ASSET MANAGEMENT Quarterly Update Q3 FY 21 Strictly Private and Confidential - Internal Circulation Only
Slide 5: Business Highlights
BUSINESS HIGHLIGHTS FL WEALTH & ASSET MANAGEMENT
Slide 6: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Total AUM has grown by 7% QoQ to 200,494 Crs • Continued focus on ARR assets – Increase of 14% QoQ to Rs 90,500 Crs AUM • IIFL One Assets increased 14% QoQ to Rs 25,948 Crs • Revenue from Operations increased 13% QoQ to Rs 239 Crs Revenues • ARR Revenues increased 10% QoQ
Slide 7: Business Summary
BUSINESS SUMMARY INR Cr 9M FY 21 FY 21 Q3 FY 21 Q2 FY 21 Q1 FY 20 Q3 QoQ YoY Closing AUM Annual Recurring Revenue Assets 90,500 90,500 79,142 73,155 70,434 14% 28% Transactional / Brokerage Revenue Assets 109,994 109,994 107,955 103,568 101,703 2% 8% Total AUM 200,494 200,494 187,097 176,723 172,137
Slide 8: Revenue, Cost and Profitability
REVENUE, COST AND PROFITABILITY Total Revenues (Rs. Cr.) & Retentions (%) QoQ Cost Mix (Rs. Cr.) Annual Recurring Revenue Transactional / Brokerage Revenue 59.1% 92.0% 54.3% 54.3% 54.3% Other income Total Retention 0.58% 0.58% Cost to Income Ratio Admin and Other Expenses 0.58% 0.55% 30 0 280 Variab
Slide 9: IIFL WAM engages with clients in multiple capacities under one platform
IIFL WAM: ENGAGES WITH CLIENTS IN MULTIPLE CAPACITIES UNDER ONE PLATFORM TOTAL AUM RS. 200,494 CR. Portfolio Manager Distributor Alternative Investments Broker / Arranger Manager Mutual Fund Manager Lender Registered Investment Estate Planning Advisor 6
Slide 10: Key Business Highlights: AUM, Net Flows, Revenue, Retention
KEY BUSINESS HIGHLIGHTS: AUM, NET FLOWS, REVENUE, RETENTION AUM NET FLOWS REVENUE RETENTION Particulars Q1 FY 21 Q2 FY 21 Q3 FY 21 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 As a Portfolio Manager 18,952 21,224 27,251 1,027 1,346 3,563 19 25 60 0.46% 0.46% 0.45%
Slide 11: Key Business Highlights – AUM Split Across Engagement Types
KEY BUSINESS HIGHLIGHTS – AUM SPLIT ACROSS ENGAGEMENT TYPES Assets Under Management Annual Recurring Revenue Assets (Rs. Cr.) As a Portfolio Manager As a Alternate Investment Manager As a Portfolio Manager As a Alternate Investment Manager As a Mutual Fund Manager As a Registered Investment Advisor
Slide 12: Key Business Highlights: AUM, Revenue, Retention
KEY BUSINESS HIGHLIGHTS: AUM, REVENUE, RETENTION AUM REVENUE RETENTION PARTICULARS Q1 FY 21 Q2 FY 21 Q3 FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 As a Portfolio Manager 18,952 21,224 27,251 19 25 60 0.46% 0.46% 0.45% IIFL ONE - Discretionary Strategies – IIFL One 3,715 4,869 8,202
Slide 13: Key Business Highlights: AUM, Revenue, Retention
KEY BUSINESS HIGHLIGHTS: AUM, REVENUE, RETENTION AUM REVENUE RETENTION Particulars Q1 FY 21 Q2 FY 21 Q3 FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 Q2 FY 21 Q3 FY 21 9M FY 21 As a Registered Investment Advisor / 5,505 5,301 4,720 1 1 2 0.05% 0.08% 0.06% Estate Planning IIFL ONE - Registered Investment 5,505 5,
Slide 14: Capital Allocation
CAPITAL ALLOCATION Net Worth 2,967 Cr. Goodwill + Select Fixed As Distributor As a Lender Intangibles Assets & Broker 1,150 Cr. 529 Cr. 293 Cr. 320 Cr. As an As a Portfolio Alternate As a Mutual Manager Investment Fund Manager 100 Cr. Manager 250 Cr. 325 Cr. Key focus areas for Capital Allocation Op
Slide 15: Medium Term Targets
MEDIUM TERM TARGETS Metrics Target Target 9M FY21 FY20 FY 2022 FY 2021 Net Total AUM 230,000 207,000 200,494 156,897 Average AUM 218,000 184,000 180,303 156,193 Retention 52 bps 55 bps 57 bps 54 bps Cost to Income 53% 55% 54% 61% RoE (Ex Goodwill and 17% 15% 14% 8% Intangibles) 12
Slide 16: Marquee Institutional Shareholding and Experienced Board
MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD Shareholding Split1 Details of Key Shareholders Promoters Promoters2 22.9% Public 23% Institutions Public Shareholding 15.8% General Atlantic 21.3% 61% 16% Fairfax 18.4% Other Institutions 21.6% Board of Directors Name & Designation Previous E
Slide 17: Experienced Management Team with Deep Domain Expertise
EXPERIENCED MANAGEMENT TEAM WITH DEEP DOMAIN EXPERTISE Karan Bhagat 25+ years of experience WEALTH AMC CORPORATE FUNCTIONS Yatin Shah Anup Maheshwari Anshuman Maheshwary Joint CEO CIO COO 16+ years of experience 25+ years of experience 20+ years of experience Anirudha Taparia Manoj Shenoy Pavan Mang
Slide 18: Annexures
Beare ANNEXURES FL WEALTH & ASSET MANAGEMENT
Slide 19: Detailed Financial Snapshot
DETAILED FINANCIAL SNAPSHOT 16
Slide 20: Consolidated Financials – Reclassified Result Table
CONSOLIDATED FINANCIALS – RE CLASSIFIED RESULT TABLE Quarter Ended 9 Month Ended Particulars Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Dec 31, 2020 Dec 31 , 2019 Fee based Income (A) 194 162 146 502 489 1. (iii) Fees and commission Income 204 161 137 502 459 1.(iv) Net gain / loss on fair value changes
Slide 21: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Rs in Crs. As at As at As at As at ASSETS LIABILITIES AND EQUITY 31-Dec-20 30-Sep-20 31-Dec-20 30-Sep-20 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 259 478 (a) Derivative financial instruments 204 252 (b) Bank Balance other than (a) above 383
Slide 22: Breakdown of Investments
BREAKDOWN OF INVESTMENTS Dec 31, Sep 30, Dec 31, Sep 30, 2020 2020 2020 2020 Investments 3,300 5,965 Borrowings 4,546 7,751 Derivative financial instruments [1c] 137 70 Derivative Financial Instruments [1a] 4,115 252 Investments [1f] 3,162 5,895 Debt Securities [1c] 204 4,032 Borrowings (Other than
Slide 23: Break Down of Investments
BREAK DOWN OF INVESTMENTS Value as on 31st Value as on 30th % of Total Investment Type Category Description Dec 20 (in Cr) Sep 20 (in Cr) Investment Govt Securities Govt Securities 413 3,274 13% Structured Perpetuals Various 819 745 25% Investments Debentures Various 137 121 4% Structured 1,369 4,14
Slide 24: Segment Deep Dive
SEGMENT DEEP DIVE FL WEALTH & ASSET MANAGEMENT
Slide 25: Business Segment Snapshot
BUSINESS SEGMENT SNAPSHOT Assets Under Management - YoY (Rs. Cr.) Assets Under Management - QoQ (Rs. Cr.) Wealth Management Wealth Management Asset Management Asset Management Custody Assets 233,3341 Custody Assets 233,354 222,383 32,859 200,296 204,311 32,859 186,635 178,140 35,287 178,140 28,159 2
Slide 26: Relevant Families and RM Count
RELEVANT FAMILIES AND RM COUNT No. of relevant families1 RM Buildup 18.9% 16.9% 17.7% 7.8% 10.8% 35 0 Wealth - RM Wealth - Teamleaders Total Existing Family count % of AUM coming from new family Total Relevant New Family count 4 6,740 30 0 299 268 269 63 250 1,790 25 0 5,320 5,176 64 64 678 61 20 0
Slide 27: Consolidated Metrics YoY
CONSOLIDATED METRICS YOY Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%)1,2,3 Annual Recurring Revenue Assets 1,200 Annual Recurring Revenue Retention on Revenue from Operations 1.40 % Transactional / Brokerage Revenue Assets Transactional / Broker
Slide 28: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%)1,2,3 Annual Recurring Revenue Assets Annual Recurring Revenue Transactional / Brokerage Revenue Assets 200,494 Transactional / Brokerage Revenue 187,097 Retention on Revenue f
Slide 29: 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 90,500 Management Fees on Funds Managed by IIFL AMC Trail Commissions on Third Party Managed Funds Trail Commission on Third Party Man
Slide 30: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Annual Recurring Revenue Assets (Rs. Cr.)1,2 Annual Recurring Revenues (Rs. Cr.) IIFL One Assets IIFL One Revenue Funds Managed by IIFL AMC Management Fees on Funds Managed by IIFL AMC Trail Commissions on Third Party Managed Funds Trail Commission on Third Party Managed Fun
Slide 31: Break Down of Loan Book
BREAK DOWN OF LOAN BOOK Loan Book Loan Spread 6,715 2.4% 2.5% 1.9% 4,798 1.4% 3,536 3,019 FY18 FY19 FY 20 FY 21 9M FY18 FY19 FY20 FY21 9M • Prevalence of risk-on sentiment continues to fuel asset growth Q3 FY 21 Q2 FY 21 Q1 FY 21 Q4 FY 20 across NBFCs in the market • Overall borrowing cost continues
Slide 32: 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 33: Thank You
THANK YOU IIFL WEALTH & ASSET MANAGEMENT