Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (November 2022)
27 slides from Edelweiss Financial Services's investor presentation, Nov 9, 2022
Slide 1: Exchange filing cover letter
EW/Sec/2022/214 November 9, 2022 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Update on Nuvama Wealth Management (fo
Slide 2: Nuvama Wealth Management Business Update
Nuvama Wealth Management Formerly Edelweiss Wealth Management Business Update 1
Slide 3: 1. India Wealth Opportunity
1. India Wealth India's financial services sector is poised to transform Opportunity o Financial wealth would continue to grow rapidly 2. Who We Are o Investment asset class will grow even faster o Rising formal penetration will multiply the 3. Our Edge opportunity Making India’s wealth industry
Slide 4: India's financial services sector is poised to transform
India's financial services sector is poised to transform Continued momentum across segments, a catalyst to growing wealth WEALTH MANAGEMENT ASSET MANAGEMENT CAPITAL MARKETS INSURANCE o Wealth will grow to o AUM will grow to reach o Multiple reforms o Continued growth in reach ₹ 800+ tn by 2025 ₹ 90+
Slide 5: Financial wealth would continue to grow rapidly
Financial wealth would continue to grow rapidly Financial assets would reach ₹ 500+ tn by FY25 ₹ tn ₹ tn ₹ tn BANK DEPOSITS MUTUAL FUNDS AIF 170 38 3.1 15% 19% 73% CAGR CAGR CAGR 9.5 7.6 0.04 FY00 FY22 FY14 FY22 FY14 FY22 Bank deposits have doubled every MF present size equivalent to 1/5th AIF prese
Slide 6: Rising formal penetration will multiply the opportunity
Rising formal penetration will multiply the opportunity North America 75% Latin America 60% China 30% India 14% Organized players in India have ~14% penetration vis-à-vis developed nations at ~75% 5
Slide 7: Making India's wealth industry a structural and scalable opportunity
Making India’s wealth industry a structural and scalable opportunity Demographics and rising affluence Greater Critical to client Growth AUM of Top 3 players as % of GDP: USA-40% vs India-5% Low capital requirements - High RoE Strong Concentration of wealth - High operating leverage Economic
Slide 8: 2. Who We Are
1. India Wealth Integrated platform: Wealth & Investment Management Opportunity with Capital Markets Market dominant and scaling fast 2. Who We Are Proven execution capabilities across diversified clientele 3. Our Edge Transformed from individual businesses to a platform 4. Future Aspiration
Slide 9: Our Business: Market dominant and scaling fast
Our Business: Market dominant and scaling fast Wealth and Investment Capital Markets with Management Amongst top 2 Fastest growing One of the largest Advising capabilities independent wealth alternate investment Institutional domestic across equity and debt management players management franchise br
Slide 10: Our Clients: People, Businesses and Institutions
Our Clients: People, Businesses and Institutions Affluent + HNI UHNI Institutions Institutionally owned large Salaried Entrepreneurs corporates Financial Institutions / Business owners Family Offices Corporate treasuries Funds and Financial UHNI led corporates Sponsors Proven execution capabilities
Slide 11: Our Journey: Individual businesses to a platform
Our Journey: Individual businesses to a platform OUR BUSINESS Wealth, Investment Capital Markets Wealth Management OUR CLIENTS Affluent, HNI UHNI Institutions Institutional Equities Institutional Equities OUR SERVICES Investment Banking Investment Banking Investment Banking Manage Invest Advice Tran
Slide 12: 3. Our Edge
1. India Wealth Integrated ecosystem driving superior client experience Opportunity and synergistic growth Deep and differentiated product platform 2. Who We Are Scaled client segments in this large and growing market 3. Our Edge Superior earnings and strong performance 4. Future Aspirations
Slide 13: Our Ecosystem: Virtuous and Self-reinforcing
Our Ecosystem: Virtuous and Self-reinforcing Superior product capabilities + Ready client access = Synergies Capital market led access to Wealth management led rapid liquidity events for wealth scale-up of investment management management AFFLUENT CORPORATE & & HNI INSTITUTIONS Serving diverse set o
Slide 14: Our Product Platform: Deep and Differentiated
Our Product Platform: Deep and Differentiated 1 2 Differentiated client delivery Hybrid channel - Human + Technology Added many industry 1st and unique solutions for customer clusters Scaling efficiently and enriching client experience 3 Superior and Multi-product mix Fulfilling all client goals and
Slide 15: Our Business Segment: Wealth and Investment Management
Our Business Segment: Wealth and Investment Management Significant presence across the large and growing opportunity ₹ 163,000 850K+ 2800+ 23,000+ 450+ 1000+ AUM in Cr Affluent, HNI UHNI Clients and Partner Locations Relationship Clients Family Offices Network Managers 1. Broad based play covering “
Slide 16: Our Business Segment: Wealth and Investment Management
Our Business Segment: Wealth and Investment Management 4. Fastest growing player in Investment Management, a segment at the cusp of exponential growth a) Multiple strategies - Pre IPO and private equity, long short, capital protected long only, venture debt b) Complete digital platform for onboardin
Slide 17: Our Business Segment: Capital Markets
Our Business Segment: Capital Markets Market dominating franchise 700+ 280+ 450+ ₹ 39,000 250+ Institutional clients Companies under Custody AUC in cr Investment Banking (Public-side) Research Coverage Clients Deal Closures 1. Leading institutional equity platform, strong distribution capability, re
Slide 18: Our Performance: Strong client addition and enhanced engagement
Our Performance: Strong client addition and enhanced engagement AFFLUENT AND HNIs UHNI AND FAMILY OFFICE CORPORATE AND INSTITUTIONS FY22 5 YRS CAGR FY22 5 YEARS CAGR FY22 5 YRS CAGR AUM in cr AUM in cr AUC in cr ₹ 53,000 30% ₹ 1,06,000 15% ₹ 39,000 51% NUMBER OF CLIENTS NUMBER OF CLIENTS INSTITUTION
Slide 19: Our Performance: Delivering best-in-class outcomes
Our Performance: Delivering best-in-class outcomes HIGHER PRODUCTIVITY (Wealth Management) LEADING RETURNS (Investment LEADING RESEARCH AFFLUENT AND HNIs UHNI AND FAMILY OFFICE Management) ₹ ~60 cr ₹ ~3,500 cr Amongst top 280+ AUM AUM quartile Companies per RM per team leader under coverage IRR (30t
Slide 20: Our Performance: Superior and diversified earnings
Our Performance: Superior and diversified earnings NET REVENUE In ₹ cr BY SEGMENT Wealth and 31% Investment Capital Markets 1,340 725 743 69% FY19 FY22 H1FY23 BY PRODUCT Broking & Allied PAT In ₹ cr 7% 7% Distribution 28% 9% Asset Services 254 12% NII 162 138 Advisory 38% Investment FY19 FY22 H1FY23
Slide 21: Our Performance: Won accolades across credible platforms
Our Performance: Won accolades across credible platforms Best Private Bank - India Global Private Banking Innovation Awards – 2022 Best Broker - India FinanceAsia Country Awards – 2016, 2017, 2018, 2020, 2021, 2022 Best Private Bank for Family Offices, India Asiamoney Asia Private Banking Awards – 2
Slide 22: 4. Future Aspirations
1. India Wealth Transitioning smoothly to operate independently Opportunity Scale meaningfully and efficiently 2. Who We Are Wealth and Investment Management to drive growth 3. Our Edge 4. Future Aspirations 21
Slide 23: Transitioning smoothly to operate independently as a listed entity
Transitioning smoothly to operate independently as a listed entity Institutionalized Risk and Independent Credit Compliance Practices Rating Independent Board In progress New Branding Completion by Q3FY23 Robust operating framework and strong governance 22
Slide 24: Significant growth momentum over next 3 years
Significant growth momentum over next 3 years Necessary fundamentals in place to grow Adequately capitalised with strong networth of ₹ 2,065 crore Wealth clients and client assets Grow to ~2x 1. Grow Wealth Management 2. Significantly Scale Investment Management Investment management assets Grow to
Slide 25: Wealth and Investment Management - key growth drivers
Wealth and Investment Management - key growth drivers REVENUE H1 FY23 IN 3 YEARS 20% 31% 69% 80% Wealth and Investment Capital Markets 24
Slide 26: In summary
In summary Poised to capture the structural and scalable wealth management opportunity: 1. One amongst the two scaled wealth management platforms in the country 2. Robust value proposition - diversified platform across client segments 3. Embedded growth lever - Investment Management 4. Strong leader
Slide 27: Safe harbour
Safe harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward-looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Edel
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