Jm Financial Limited · NSE:JMFINANCIL
Jm Financial — Q2 FY23 Earnings Presentation
60 slides from Jm Financial's earnings presentation, Nov 17, 2022
Slide 1: Analyst/Institutional Investors' Meeting cover letter
November 17, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1st Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (East) Mumbai 400001 Mumbai – 400 051 Security Code: 52
Slide 2: Investor Presentation cover letter
November 14, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Exchange Plaza 1st Floor, New Trading Ring Plot No.C-1, G Block Rotunda Building, P J Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (East) Mumbai 400001 Mumbai 400 051 Security Code: 5234
Slide 3: JM Financial Limited — Q2FY23 Results Update
JM Financial Limited — Q2FY23 Results Update PActualising Possibilities. Accelerating Progress. As Res AIM FINANCIAL
Slide 4: Disclaimer/ Safe Harbor
Disclaimer/ Safe Harbor This presentation and the following discussion may contain certain words or phrases that are “forward looking statements” by JM Financial Limited (together with its subsidiaries and associates), referred to as (“JM Financial” or “JMFL” or “the Company”) that are not historica
Slide 5: Table of Contents
Table of Contents Group Overview Consolidated Financial Performance TabA Investment Bank Tab B Mortgage Lending Tab C Platform AWS Tab D Alternative and Distressed Credit Section 3 Group Structure and Shareholding Details Corporate Social Responsibility Annexure Financial Performance and Other Detai
Slide 6: Section: Group Overview
Section : 1 Group Overview Aim FINANCIAL °
Slide 7: Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth
Evolution of the Franchise Over Five Decades; Unmatched Depth and Breadth Launched Bondskart. Reported highest ever ; consolidated operating Set up a dedicated Finance from PAT realestate business National Housing with a Global Fund Bank (NHB) Terminated JV with led by Mr. Vikram Morgan Stanley Pand
Slide 8: Diversified Businesses with Multiple Growth Opportunities
Diversified Businesses with Multiple Growth Opportunities Investment Bank : Cornerstone of our Franchise Og erative and Distressed Credit : Expertise Built in a Niche Business wv >. * Caters to Institutional, Corporate, Government, Ultra High Networth Clients + Over four decades of vintage EP Distre
Slide 9: Investment Bank: Deep Client Relationships; Delivering One Firm to Clients
Investment Bank: Deep Client Relationships; Delivering One Firm to Clients v Depth and breadth of markets increasing significantly; digital companies expected to add Y Strategic M&A trends likely to continue IPO Listings (FY17-22) 180 issues Rs.2.88 Lakh Cr Net FII/DII Flows (CY17 — 9MCY22) Rs.1.60
Slide 10: Mortgage Lending: Wholesale and Retail Business
Mortgage Lending : Wholesale and Retail Business Y Benign competition in wholesale business Key Business Priorities v Strong momentum in residential real estate market Y Grow wholesale loans upon Low Penetration (Mortgage/GDP)) Underserved Affordable Market (2) easing of travel conditions 66.3% son
Slide 11: Alternative and Distressed Credit: Strong Expertise in a Niche Market
Alternative and Distressed Credit : Strong Expertise in a Niche Market v Ferocity of the second and third wave of COVID-19 has dented economic activity Key Business Priorities Y Significant interest from strategic and financial investors in acquiring distressed assets ¥ Co-Investment model with stra
Slide 12: Platform AWS: Integrated Platform for Individual Clients; Focus on Digital
Platform AWS : Integrated Platform for Individual Clients; Focus on Digital Y¥ Financialization of savings to continue; digitization to make it simpler and faster v Income levels expected to increase Rising Penetration of 42.0 Non Institutional Broking” ADV Cash (Rs ‘000Cr oo a Growth in MF AAUM (Rs
Slide 13: Section: Consolidated Financial Performance
Section : 2 Consolidated Financial Performance Aim FINANCIAL fo
Slide 14: Consolidated Performance
Consolidated Performance FY22 PAT includes Rs. 123 Cr (H1FY22 — Rs. 57 Cr)** from IPO Financing activity (H1FY23 — * Pre-Provision Revenues Operating End of = Profit (PPOP) Loan book @2 FY23 Cr eG 318 Cr 180 Cr 9 3.8% 9.2% 14,670 Cr | on | ooh —— eo t ] | tT oe Q2 FY22 969 Cr 431 Cr 317 Cr 174 Cr 1.
Slide 15: Consolidated Performance: Diversified Business Model for Earnings Resilience
Consolidated Performance : Diversified Business Model for Earnings Resilience Total Revenue (Rs Cr) Pre-Provision Operating Profit (Rs Cr) PBT (Rs Cr) mAWS mAlternative and Distressed Credit 431 424 ™ Mortgage Lending =lnvestment Bank 969 964 877 372 349 839 806 347 317 322 318 ike 187 162 bE a8 153
Slide 16: TAB A: Investment Bank
TAB :A Investment Bank A JM FINANCIAL is
Slide 17: Investment Banking: Decades of Trust from Clients
Investment Banking : Decades of Trust from Clients Transaction details for Q2 FY23 : Select issuances in a weak market environment HARSHA IPO : Harsha Engineers International Limited (~Rs. 755 Cr) AL GP GR FADD ED Fairness Opinion to the Board OF ABB India Limited on valuation of its wholly owned su
Slide 18: Institutional Research: Strong Knowledge Base
Institutional Research : Strong Knowledge Base Overview Research Coverage Across Sectors + Research Coverage of 248 Companies ¢ Strong breadth of sector coverage + Insightful thematic and industry reports + Leading Corporate Access Franchise Specialty Chemicals Others Cement & Industrials Real Estat
Slide 19: Private Equity Funds
Private Equity Funds Fund Ill Investments (Initial Closing in Dec’21) (Targeted Corpus: Rs 1,000 Cr with green shoe of Rs 500 Cr) Fund | All investments exited (Fund corpus: Rs. 952 cr) * Sector: Health-tech A * Sector: Health-tech + Sector: Consumer & Retail arman 5 . . + India’s largest digital So
Slide 20: Franchise Enhancing Financing
Franchise Enhancing Financing End of Period Loan Book) Loan Book Description mWholesale Mortgage Retail Mortgage mBespoke FI Financing* mCapital Market Bespoke Finance : Loan Book available to clients of Investment Bank segment 4,908 4,591 4,497 3.781 2.663 Capital Markets : Loan Book originated for
Slide 21: Investment Bank: Financial Performance
Investment Bank : Financial Performance Total Revenue (Rs Cr) Profit Before Tax (Rs Cr) m Interest Income m= Non Interest Income 312 a 308 “ " - 284 299 122 58.9% 93 57.1% GH — _ — L Q2FY22 Q3FY22 Q4FY22 QUFY23 Q2FY23 QoFY22 Q3Fy22 QaFY22 QiFY23 QoFY23 Profit After Tax (Rs Cr) Annualized Return Rati
Slide 22: TAB B: Mortgage Lending
TAB: B Mortgage Lending Aim FINANCIAL ©
Slide 23: Mortgage Lending
Mortgage Lending Wholesale v Dedicated real estate subsidiary (JM Financial Credit Solutions) formed in 2014 and backed by Global Fund led by Mr. Vikram Pandit (Ex CEO of Citibank) v JM Financial Limited holds 46.7% stake v # groups with relationship — 100+ v Average ticket size per group — ~Rs. 127
Slide 24: Wholesale Mortgages: JM Financial Credit Solutions (JMFCSL)
Wholesale Mortgages : JM Financial Credit Solutions (JMFCSL) End of Period Loan Book’ (Rs Cr) 8,415 7,362 6,865 ' i - L Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Gross, Net NPA & SMA 2 (%)* = Gross NPA % = Net NPA % mSMA2 % Mi Provision to loan book % 6.0% 5.3% 5.7% 5.6% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23
Slide 25: Retail Mortgages: JM Financial Home Loans
Retail Mortgages : JM Financial Home Loans Branch Network 75 64 55 ; : Q2FY22 Q3FY22 Q4FY22 QIFY23 Q2FY23 Geography wise split of Branches : 75 Madhya Chhattisgarh Andhra Pradesh — 1.3% Pradesh 8.0% Maharashtra 22.7% Rajasthan_ 10.7% Kamaraka ne Gujarat “en 20.0% reengena /_ Tamil Nadu 18.7% Aim FIN
Slide 26: Mortgage Lending: Financial Performance
Mortgage Lending : Financial Performance Net Total Income (Rs Cr) 191 177 175 178 : : | Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 PAT (Pre Non Controlling Interest)(Rs Cr) 77 70 70 : 84 | Q2FY22 Q3FY22 Q4FY22 Aim FINANCIAL Q1FY23 Q2FY23 Pre-Provision Profit (Rs Cr) Profit Before Tax (Rs Cr) 162 119 112 96
Slide 27: TAB C: Platform AWS
TAB: C Platform AWS A JM FINANCIAL a
Slide 28: Broking: Advisory Led, Leveraging Technology and Expanding Market
Broking : Advisory Led, Leveraging Technology and Expanding Market ad Clients ~ 2.14+ Lakhs Growth of ADTO* & Volume Mix % ‘000 Rs Cr Affluent, HNI and strong vintage === Cash sm Future mm Option —#-ADTO 100% 27 28 . wae 24 > Presence in 197 Cities 80% 50 60% 16 40% 13 12 Strong advisory capabilitie
Slide 29: Broking: Online and Mobile Trading Gaining Momentum
Broking : Online and Mobile Trading Gaining Momentum Online v/s Offline Mobile Trading =Online = Offline mms ADTO (Cr) — Users 13,661 12,763 12,623 om eo 11,012 11,737 Q2FY22 Q3FY22 Q4FY22 QIFY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Seamless account opening Mobile Validation PAN Verification an
Slide 30: Wealth Channels: Increasing Scale in Equity AUM, Client Engagement and Reach
Wealth Channels : Increasing Scale in Equity AUM, Client Engagement and Reach Private Wealth AUM (Rs Cr) Private Wealth AUM Transactional and Recurring (Rs Cr) m= Equity m Liquid m= Recurring = Transactional 64,683 61,660 63,760 64,683 61,214 61,660 57.679 41,462 41,687 45,984 22,298 22,996 11,695 Q
Slide 31: Platform AWS: Financial Performance
Platform AWS : Financial Performance Total Revenue (Rs Cr) Cost to Income (%) 180 187 95.2% 98.8% 8% 453 162 130 70.5% 5 i ; : i Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q2FY22 Q3FY22 Q4FY22 ; QIFY23 ’ QoFY23* Profit Before Tax and Profit After Tax (Rs Cr) Annualized Return Ratios (%) = por =PAT (post Non
Slide 32: TAB D: Alternative & Distressed Credit
TAB: D Alternative & Distressed Credit A JM FINANCIAL 29
Slide 33: Alternative & Distressed Credit: JM Financial Asset Reconstruction Company
Alternative & Distressed Credit : JM Financial Asset Reconstruction Company Overview + Effective shareholding of 58.28% held by JM Financial Ltd as of September 30, 2022 * 48 member professional team as September 30, 2022. The team is also involved in financial and legal due diligence for acquisitio
Slide 34: Alternative & Distressed Credit: Financial Performance
Alternative & Distressed Credit: Financial Performance Net Total Income (Rs Cr) 68 44 30 30 o 7 : PAT Post Non Controlling Interest (Rs Cr) 24 9 10 10 | Q2FY22 Q3FY22 Q4FY22 QIFY23 Q2FY23 Leverage Analysis (Rs Cr) Q2FY22 Q3FY22 Q4FY22 QIFY23 Q2FY23 Annualized Return Ratios (%) mm Equity* mmm Debt —m
Slide 35: Section: Group Structure and Shareholding Details
Section 3 Group Structure and Shareholding Details A JM FINANCIAL 82
Slide 36: Group Structure: September 30, 2022
Group Structure : September 30, 2022 JM Financial Limited Investment Banking Management of Private Equity Fund Holding company of other operating subsidiaries JM Financial i i i i i i JM Financial Asset ini i " : Overseas Holdings JM Financial Asset JM Financial JM Financial Infinite India JM ial JM
Slide 37: Shareholding Summary
Shareholding Summary Share Price Information ——Price Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 % Shareholding — September 30, 2022 Non-Institutions, 14.92% Mutual Funds, 8.17% Foreign Portfolio Investors, 20.90% Promoter & Promoter Group, 56.01% Aim FINANCIAL Market Information (BSE) September 30, 2022 Mar
Slide 38: Section: Corporate Social Responsibility
Section 4 Corporate Social Responsibility Aim FINANCIAL 6
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility Project Bachpan — Bihar = Initiated an Adult Literacy Program (ALP) to impart foundational literacy and numeracy to mothers of students enrolled at four of our Bachpan centers. = Mothers attending regularly = 36 JMFF Digital Saksharta - Maharashtra = 3 Students placed
Slide 40: Corporate Social Responsibility (Cont'd)
Corporate Social Responsibility (Cont'd) AGRICULTURE AND ALLIED ACTIVITIES Integrated Village Development Project — Maharashtra = Aagri-inputs for Kharif Season: = 2,265 kg of paddy seeds distributed to 265 farmers across 6 villages = 200 kg of maize seeds distributed to 100 farmers across 6 village
Slide 41: Annexure: Financial Performance and Other Details
Annexure Financial Performance and Other Details A JM FINANCIAL 88
Slide 42: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) Q2 FY23 Q1 FY23 Q0Q % Q2 FY22 YoY % Gross Revenue 877 806 8.9% 969 -9.5% Finance cost 270 261 3.5% 287 6.1% vere o sstesteaory of financial instruments under # # N/M 3 N/M Employee cost 141 148 4.7% 145 -3.1% Depreciation 10 10 5.3% 9 7.0% Oth
Slide 43: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs Cr) H1 FY23 H1 FY22 YoY % FY22 Gross Revenue 1,683 1,962 “14.2% 3,763 Finance cost 531 548 -3.3% 1,082 Net loss on derecognition of financial instruments under amortised cost category # 3 N/M 7 Employee cost 288 308 -6.2% 548 Depreciation 20 19 4.
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Cr) As at Sept 30, 2022 As at March 31, 2022 Loan book* - Steady state Financing 14,662 12,771 Loan book* — Episodic Financing 55 1,374 Distressed asset book (Investment in SRs / Loan) 4,060 3,825 Cash and cash equivalents (CCE)** 1,388 3,637 Other Investme
Slide 45: Capital Employed and Networth
Capital Employed and Networth Particulars (Rs Cr) Capital Employed As at Sept 30, 2022 As at March 31, 2022 As at Sept 30, 2022 As at March 31, 2022 Investment Bank 2,542 2,499 2,536 2,492 JM Financial Products Limited 1,891 1,734 1,885 1,728 JM Financial Limited 376 495 376 495 JM Financial Institu
Slide 46: Segment Performance
Segment Performance Segment revenue (Rs Cr) Q2 FY23 Q1 FY23 Q0Q % Q2 FY22 YoY % H1 FY23 H1 FY22 YoY % Investment Bank 299 308 -3.0% 312 -4.0% 607 628 -3.2% Mortgage Lending 307 300 2.4% 314 -2.2% 607 614 -1.2% Alternative & Distressed Credit 102 65 57.5% 125 -18.4% 167 350 -52.4% 522 Platform AWS 16
Slide 47: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue Q2FY23 H1FY23 Q2FY23 H1FY23 JM Financial Limited 101 196 65 97 JM Financial Products Limited 229 424 84 160 JM Financial Institutional Securities Limited 22 49 # 2 Overseas Entities 6 3 1 (6) Add/(Less): Intra — Segment (59) (65) (52)
Slide 48: Segment Revenue and Profit after tax
Segment Revenue and Profit after tax Particulars (Rs Cr) Revenue Q2FY23 H1FY23 Q2FY23 H1FY23 JM Financial Services Limited 141 257 5 9 JM Financial Capital Limited 10 19 6 13 JM Financial Asset Management Limited 6 9 (6) (14) JM Financial Commtrade Limited + Astute Investments + ARB Maestro 7 10 1 2
Slide 49: Investment Bank
Investment Bank Particulars (Rs Cr) Q2 FY23 Q1 FY23 Q0Q% Q2 FY22 YoY % H1FY23 H1FY22 YoY % Segment Net worth + NCI 2,542 2,438 4.3% 2,371 7.2% 2,542 2,371 7.2% 2,499 Gross Revenue 299 308 -3.0% 312 -4.0% 607 628 -3.2% 1,273 Finance cost 90 85 6.1% 80 12.0% 174 154 13.4% 319 Impairment on Financial I
Slide 50: Mortgage Lending
Mortgage Lending Particulars (Rs Cr) Q2 FY23 Q1 FY23 Q0Q % Q2 FY22 YoY % H1FY23 H1FY22 YoY % Segment Net worth + NCI 4,129 4,028 2.5% 3,732 10.6% 4,129 3,732 10.6% Gross Revenue 307 300 2.4% 314 -2.2% 607 614 1.2% 1,191 Finance cost 129 124 3.9% 123 5.1% 254 247 2.9% 483 Net loss on derecognition of
Slide 51: Alternative and Distressed Credit
Alternative and Distressed Credit Particulars (Rs Cr) Q2 FY23 Q1 FY23 Q0Q % Q2 FY22 YoY % H1FY23 H1FY22 YoY % Segment Net worth + NCI 1,855 1,858 -0.1% 1,776 44% 1,855 1,776 44% 1,855 Gross Revenue 102 65 57.5% 125 -18.4% 167 350 52.4% 522 Finance Cost 58 55 5.5% 57 2.1% 113 118 4.7% 229 Employee Co
Slide 52: Platform AWS
Platform AWS Particulars (Rs Cr) Q2 FY23 Q1 FY23 Q0Q% Q2 FY22 YoY % H1FY23 H1FY22 YoY % Segment Net worth + NCI 725 770 -5.9% 718 0.9% 725 718 0.9% 767 Gross Revenue 162 130 25.1% 180 -9.6% 292 323 -9.3% 662 Finance cost 23 17 38.4% 22 5.1% 40 37 9.1% 74 Impairment on Financial Instruments 1 (3) N/M
Slide 53: Consolidated Lending Book Profile
Consolidated Lending Book Profile End of Period Gross Loan Book (Rs Cr)# NIM Analysis (%)# Wholesale Mortgage Retail Mortgage mBespoke mFIFinancing*** mCapital Market MB Wid. Avg Tenure —#-Yield% —-*-COF% -—*#—-NIM% 14,670 (Months) 13.9% 13,017 42,606 905 fo 13.3% 12.7% 12.9% 12.7% 440 461 — ba —s 9
Slide 54: Consolidated Balance Sheet
Consolidated Balance Sheet Networth and Leverage (Rs Cr) mmm Equity** mum Debt* —eDIE —e— Net D/E Cash and Cash equivalents (Rs Cr) Q2FY22 Q3FY22 Q4FY22 QIFY23 Q2FY23 Borrowing Profile* (Rs Cr) 10,808 10,789 12,783 11,747 13,063 9 9 2% 5% o% 4% 2% 2% 5% 2% Long 80% Long Lon 2 80% 7Th Long 79% We om
Slide 55: Quarterly Performance of Select Subsidiaries
Quarterly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd Q2FY23 Q2FY22 Q2FY23 Q2FY22 JM Financial Products Ltd Credit Rating Revenue 281 295] Revenue 229 180) Net Profit 91 75) Net Profit 84 28| Net worth 4,082 3,777 Net worth 2,107 1,875) End of period Loan book* 8,415 6,595)
Slide 56: Half yearly Performance of Select Subsidiaries
Half yearly Performance of Select Subsidiaries JM Financial Credit Solutions Ltd JM Financial Products Ltd H1FY23 H1FY22 FY22 H1FY23 H1FY22 Revenue 554 578 1,136) Revenue 424 319 678) Net Profit 149 128 289) Net Profit 160 52 129) Net worth 4,082 3,777 3,942 Net worth 2,107 1,875 1,952) End of perio
Slide 57: Effective Risk Management Framework
Effective Risk Management Framework Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the Group Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks Quarter
Slide 58: Board of Directors
Board of Directors Mr. Nimesh Kampani, Chairman B. Com, FCA + Founder and Chairman of JM Financial Group, one of India’s leading financial services groups. + Made pioneering contributions to the Indian capital markets + Served as a member on several important committees like MoF, Gol, RBI, SEBI, BSE
Slide 59: Board of Directors (Cont'd)
Board of Directors (Cont'd) Mr. P S Jayakumar, /ndependent Director CA, Post graduate in business management from XLRI Jamshedpur. + 23 years of work experience with Citibank in their India and Singapore offices with his last assignment as Country Head, Consumer Banking Group, Citibank. + Cofounded
Slide 60: For Further Queries
For Further Queries - XN Mr. Nishit Shah Business Strategy, Investor Relations and CFO — JM Financial Products Limited Email: nishit.shah@jmfl.com Contact No: 022 66303522 Mr. Gagan Kothari CFO — JM Financial Credit Solutions Limited Email: gagan.kothari@jmfl.com Contact No: 022 66303360 Mr. Manish