Angel One Limited · NSE:ANGELONE
Angel One — Angel Broking — Q4 FY2021 Earnings Presentation
45 slides from Angel One's earnings presentation, May 5, 2021
Slide 1: Angel Broking cover letter to exchanges
Angel Broking" May 05, 2021 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 Sc
Slide 2: Investor Presentation May 2021
Investor Presentation May 2021 1
Slide 3: Disclaimer
_ A Angel Broking· 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 subscri
Slide 4: Digitalization: A Key Driver
- - - - - - ~- A Angel Broking· Digitalization: A Key Driver •• • •• • Customers’ Choice For Access To Markets Using Proprietary Digital Seamless Digital Experience Digital Platforms Properties Equity Commodity Currency Lending MFs Insurance Bonds Gold Data Science Approach Superior Product & Servic
Slide 5: One Of The Largest Digital Retail Broking House
_ A Angel Broking· One Of The Largest Digital Retail Broking House Digital Model: Scalable & Sustainable 4th Largest 3rd Largest 8.3% In NSE Active Clients As On Mar’21 In Incremental NSE Active Clients In FY21 Share In NSE Active Client Base In Mar’21 1.56mn 38.0% 4.12mn Total NSE Active Client Bas
Slide 6: Q4 & FY21: Key Performance Highlights
_ A Angel Broking· Q4 & FY21: Key Performance Highlights Q4 ’21 (QoQ Growth) FY21 (YoY Growth) Highest Gross Client Addition 0.96 mn t 87% 2.36 mn t 322% Highest Share In Incremental Demat Accounts 17.6% t 245bps 16.2% t 561bps Highest Number of Trades 218 mn t 33% 671 mn t 149% Highest Avg. Daily T
Slide 7: Technology Powered Business
_ A Angel Broking· Technology Powered Business Peak trades handled in Q4 ’21, demonstrating robust IT infrastructure 5.0 mn App downloads* 10.3mn Technology Powered Avg. time taken to onboard clients 5 mins Direct clients on-boarded digitally 100% • Orders executed online by direct clients >99% • Or
Slide 8: 4th Fastest Growing App In Finance Category
- - - - - - - - ~- A Angel Broking· 4th Fastest Growing App In Finance Category India Mobile App Stats: 2020 I , -------------------------------- ' I I , -------------------------------- ' I I , -------------------------------- ' I India is the 2nd I I I I I I I I I 24.27 bn I I I I I I US$ 0.50 bn
Slide 9: Our Transformational Journey
Our Transformational Journey
Slide 10: Successful Digital Transformation Leading To A Scalable And Profitable Business Model
~ -- - A Angel Broking· Successful Digital Transformation Leading To A Scalable And Profitable Business Model Pre – 2015 2015-19 2019 Onwards Digital Model • ZERO branches + Flat Pricing Physical Model Physical + Digital Model • 100% Digital Acquisition, On- • 180+ branches • Reduced Branches boardi
Slide 11: End-To-End And Advanced Digital Experience
- - - - - A Angel Broking· End-To-End And Advanced Digital Experience On-Boarding Daily Engagement Retention 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 engage
Slide 12: Best In Class Product Suite
- - - - - - ~- A Angel Broking· Best In Class Product Suite Seamless Experience Across Digital Platforms At Most Competitive Price Angel Broking Angel Broking Machine learning based advisory, ARQ Mobile App Web "!!'I"'!!!!" lllllliiiiiiiii~- :- -. -- Straight through process for client on- ₹0 ·- ,-
Slide 13: Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ
_ A Angel Broking· Pioneered Robo-Advisory Through Our Flagship Advisory Product – ARQ : -----------------------------------------~ I I I I Provides equity investment advisory services Alpha-generating algorithms based on multiple fundamental and I I I I ARQ I I I I I Provides superior risk-adjusted
Slide 14: Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients
- _ A Angel Broking· Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients ₹ Free Research & Advisory Margin Funding Fundamental | Technical | ARQ Seamless, Pre-approved limits Advisory at no additional charge Securities as collateral NIL fund transfer charges F&O trad
Slide 15: Huge Untapped Potential
\\ a Angel Broking rt | oney Ver ANGEL BEE 9@) Mobile App ‘ Huge Untapped aa Potential =
Slide 16: India, Largely Underpenetrated Market
_ A Angel Broking· India, Largely Underpenetrated Market Rising Penetration Of Demat Accounts In India Steady Growth In Demat Accounts In India (Mn) 12.8% CAGR Inflection Point 4.1% 35% YoY Growth 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 F
Slide 17: Digital Brokers Outpacing Competition
_ A Angel Broking· Digital Brokers Outpacing Competition Top 5 Digital Brokers Constitute 47% In Cumulative NSE Active Clients Base (Mn) ■ Top 5 Digital Brokers* ■ Others 18.9 Cumulative: 16.0 14.2 2.1x Growth 12.2 9.9 10.8 9.0 9.0 9.0 9.6 8.6 8.1 7.2 7.8 7.2 7.0 9.0 Top 5 Digital Brokers: 5.6 7.0 5
Slide 18: Digital Business Driving Exponential Growth For Angel
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 A Angel Broking· Expanding Market Share In NSE Active Client Base 8.3% 1.7x 7.6% Expansion 7.1% 6.3% In Market 5.3% Share 4.8% 4.8% 4.9% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Angel’s NSE Active Client Base (Mn) & Rank DDDDDDDD
Slide 20: Leading To Large Expansion In Retail ADTO Market Share Across Segments
- _ A Angel Broking· Leading To Large Expansion In Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 5.6x Growth _____.a ......_ __________ _________._L___ L--_ 3.7% 4.7% 5.9% 6.9% 8.2% 12.3% 16.1% 20.8% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 F&O Market Share
Slide 21: Digital Facilitates Penetration Into Tier 3 And Tier 2 Cities
_ A Angel Broking· Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities ~94% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q4 ’21 (‘000) 956 61 Tier 1: 6.4x Growth 349 Tier 2: 12.4x Growth 550 511 48 39 347 197 188 231 37 141 126 546 Tier 3: 18.0x Growth 0 68 30 10 28 1
Slide 22: Digital Transformation Driving Strong Client Acquisition
_ A Angel Broking· Digital Transformation Driving Strong Client Acquisition 90% Of Gross Clients Added Under Flat Fee Plan 10% 10% 10% 10% Traditional Plan 29% 19% 20% 19% (Driven by AP network) 81% 80% 81% 90% 90% 90% 90% Flat Fee 71% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Gross Cl
Slide 23: Digital Business Drives Multifold Increase In ADTO Across Segments
_ A Angel Broking· Digital Business Drives Multifold Increase In ADTO Across Segments Flat Fee Dominates Overall ADTO Traditional Plan 16% 17% 7% (Driven by AP 27% 27% 40% network) 54% 76% 84% 83% 93% Flat Fee 73% 73% 60% 46% 24% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Strong Growth
Slide 24: Strong Growth In Client Activity Across Segments
-Strong Growth In Client Activity Across Segments A Angel Broking· Growth In Cash Segment Growth In F&O Segment Growth In Commodity Segment 80 - Cash ADTO (₹ Bn) No. Of Trades (Mn) 103 105 120 4,000 - F&O ADTO (₹ Bn) No. Of Trades (Mn) 106 120 80 - Commodity ADTO (₹ Bn) No. Of Trades (Mn) 8 9 8 70 9
Slide 25: Financial Highlights
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Slide 26: Q4 FY21: Key Highlights
_ A Angel Broking· Q4 FY21: Key Highlights 29% 66% 33% ₹ 9,639 mn QoQ Growth in Gross Client QoQ Growth in Avg. Daily QoQ Growth in Number of Average client funding book for Base Turnover Trades Q4 ‘21 ₹ 1,020 mn ₹ 4,189 mn ₹ 1,463 mn ₹ 1,424 mn 39.2% QoQ Growth in PAT 32.7% QoQ Growth in Gross 33.9
Slide 27: FY21: Key Highlights
_ A Angel Broking· FY21: Key Highlights 127% 380% 149% ₹ 7,164 mn YoY Growth in Gross Client Base YoY Growth in Avg. Daily YoY Growth in Number of Average client funding book for Turnover Trades FY21 ₹ 2,981 mn ₹ 12,990 mn ₹ 4,295 mn ₹ 4,112 mn 243.4% YoY Growth in PAT 72.1% YoY Growth in Gross 207.
Slide 28: Impact Of New Margin Regulations
-- - A Angel Broking· Impact Of New Margin Regulations Implementation Timeline Average Monthly Net Broking Income (₹ Mn) A Negligible impact of phase 2 of new % of Peak Phases Implementation 633 Margin 596 margin norms on net broking income Phase I 25% Dec’20 – Feb’21 434 443 339 A Developed an inte
Slide 29: MTF Book Spread Over Wide Customer Base
_ A Angel Broking· MTF Book Spread Over Wide Customer Base MTF Book Size Low Per Client Exposure MTF Book Segmentation (₹ Mn) (₹) 64,068 ■ <₹ 0.1mn ■ ₹ 0.1-0.5mn ■ >₹ 0.5mn 10,535 0.5% 2.1% 2.6% 3.1% 5.8% 51,088 7.1% 5,420 96.3% 92.1% 90.3% 18,019 2,471 Q4 '20 Q3 '21 Q4 '21 Q4 '20 Q3 '21 Q4 '21 Q4 '
Slide 30: Segmental Revenue Break Up
- Segmental Revenue Break Up A Angel Broking· Gross Revenue Mix ■ Gross Broking ■ Interest ■ Depository ■ Distribution ■ Other 3% 4% 4% 4% 4% 5% 8% 9% 1% 1% 1% 2% 1% 1% 1% 1% 4% 4% 5% 5% 16% 7% 7% 7% 6% 28% 24% 22% 20% 17% 14% 15% 63% 66% 69% 69% 72% 70% 70% 68% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2
Slide 31: Net Broking Revenue Contribution Mix
- Net Broking Revenue Contribution Mix Age-wise Net Broking Revenue Split (₹ Mn) (2.83mn clients added since April’19) ■ <2 years ■ 2-5 years ■ >5 years 1,788 182 1,303 1,329 321 1,016 170 151 755 276 260 Digitization 633 646 700 150 121 239 journey started 98 97 107 1,285 124 138 160 183 919 in Apr
Slide 32: Rapidly Growing Digital Business Contributes To Majority Of Net Revenue
- _ A Angel Broking· 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% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1
Slide 33: Technology Adoption Creating Business Flexibility
- _ A Angel Broking· Technology Adoption Creating Business Flexibility Right Sizing Overall Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 15% Decline 3,428 496 2,839 2,733 2,787 2,908 450 2,503 2,401 2,470 388 358 369 335 330 343 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4
Slide 34: Leading To Significant Operating Leverage Benefits
_ A Angel Broking· Leading To Significant Operating Leverage Benefits Consolidated EBDAT Consolidated EBDAT Margin (₹ Mn) 10.2x 49% 49% 49% 1,463 43% 39% 36% 1,043 1,093 30% 696 421 492 12% 340 144 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '
Slide 35: Consolidated Business Performance
_ A Angel Broking· Consolidated Business Performance (₹ Mn) Total Gross Revenues Profit After Tax ■ Gross Broking ■ Interest Income ■ Other FY21 PAT: ₹ 2,981 mn Includes tax impact of ₹ 36 mn Despite 6% lesser trading days for earlier years +33% +39% 4,189 +29% -1% +55% 1,020 721 -2% +24% 3,179 3,15
Slide 36: Financial Snapshot
_ A Angel Broking· Financial Snapshot (₹ Mn) Total Income Cost To Net Income Profit After Tax 7,547 12,990 15.5% 34.6% RoE - 70.6% 1,927 2,981 1,998 52.1% - 742 1,766 5,039 9,065 868 FY20 FY21 FY20 FY21 FY20 FY21 Return on Average Equity; ■ Gross Broking ■ Interest Income ■ Other □ *FY21 Networth in
Slide 37: Summary Of Consolidated Profit & Loss Statement
- _ A Angel Broking· Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 (a) Interest Income 545 381 349 1,769 1,577 (b) Fees and commission income 3,488 2,655 1,559 10,778 5,644 (c) Net gain on fair value changes 53 32 19 89 25 Total Revenue from ope
Slide 38: Summary Of Consolidated Balance Sheet
- _ A Angel Broking· Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Mar'21 Mar’20 Financial Assets (a) Cash, cash equivalents and Bank Balance 18,774 14,136 (b) Trade Receivables 2,277 390 (c) Loans 11,285 2,806 (d) Investments 55 353 (e) Other financial assets 14,289 2,706 Non-financial A
Slide 39: Way Forward
_ A Angel Broking· Way Forward Strengthen our leadership position to become the largest retail broking house in India • Largest Retail Broking House Establish a substantial client base in r investment advisory business to support • Establish Investment growth Advisory • Robust Technology Infrastruct
Slide 40: About Us
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Slide 41: Board Of Directors
- _ A Angel Broking· Board Of Directors Dinesh D. Thakkar Ketan Shah Anisha Motwani Promoter, Chairman and MD Non-Executive Director Independent Director 28+ years of experience in diverse Promoter of Angel Group industries Veteran in capital markets with over 3 26+ years of overall experience Worke
Slide 42: Experienced Management Team
- _ A Angel Broking· Experienced Management Team Narayan Gangadhar Vineet Agrawal Prabhakar Tiwari Nilesh Gokral Chief Executive Chief Financial Chief Growth Chief Operating Officer Officer Officer Officer 20+ yrs global experience 24+ yrs of total experience 18+ yrs of total experience, ~2 18+ yrs
Slide 43: Awards & Accolades
-- - A Angel Broking· Awards & Accolades Technology Capital Markets Marketing Best Customer Education ‘Trendsetter’ Award at NCDEX Krishi Awards Initiative in the Equity Broking NetApp - Innovations Outstanding Contribution Sector at Resulticks BFSI Digital Award, 2019 - Retail Segment Stallions Awa
Slide 44: Consistently Certified By The Great Place To Work
- -------- ~- A Angel Broking· 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. ... ......,,. ... ~ ....... --Uonlonl "- ......._~ (;,n,Ploor . . . . . . - - - . ~ . . . . ('
Slide 45: Thank You
_ A Angel Broking· Thank You Company : Investor Relations Advisors : ----- Angel Broking® S GAStrategic Growth Advisors Angel Broking Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Emai