Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (May 2022)
16 slides from Edelweiss Financial Services's investor presentation, May 13, 2022
Slide 1: Scheme of Arrangement cover letter to exchanges
EW/Sec/2022/86 May 13, 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: Scheme of Arrangement The Board of Direct
Slide 2: Edelweiss Wealth Management (EWM) Demerger and Listing
Edelweiss Wealth Management (EWM) Demerger and Listing 1. Demerger and listing update • Phase 1: PAG’s strategic Investment in EWM Complete • Phase 2: NCLT order received and made effective for Phase 2 demerger scheme Complete • Phase 3 o Solicit share entitlement report and fairness opinion Complet
Slide 3: Edelweiss Wealth Management (EWM)
Edelweiss Wealth Management (EWM)
Slide 4: Contents
Contents 1 Wealth Management - a large structural opportunity in India 3 2 EWM - valuable franchise in a high opportunity segment 8 3 Way forward - focus areas 13 2
Slide 5: Financial wealth in India is set to grow 2x by 2025
Financial wealth in India is set to grow 2x by 2025 Financial assets growing faster than physical assets Investment asset class expected to grow at 14% CAGR Financial Assets (INR trillion) as a % of total wealth (%) Investment Assets Bank deposites and Cash 63% CAGR 55% 49% 10% 60% 60% 512 57% CAGR
Slide 6: ~80% of the financial wealth in hands of 0.7% of households
~80% of the financial wealth in hands of 0.7% of households Distribution of financial wealth in India (2019) # Households Financial Wealth Segment Financial Wealth (~ In lakhs) (~ ₹ tn) Retail Below ₹ 70 lacs 3,300 57 Affluent ₹ 70 - 700 lacs 22 40 HNI ₹ 700 - 3500 lacs 1.4 20 UHNI ₹ 3500+ lacs 0.2
Slide 7: Organized WM players in India have only ~14% penetration
Organized WM players in India have only ~14% penetration 75% 60% 30% 14% North America Latin America China India Increasing product complexity, regulatory focus and technology will drive consolidation 5
Slide 8: Wealth Management - a large structural opportunity in India
Wealth Management - a large structural opportunity in India 1 2 Strong Economics Critical to Client Lower capital requirements and a higher Client value advisor relationships and return on equity (ROE) personal advice 3 4 Greater Growth Economic prospects, demographic dividend, Highly Fragmented ris
Slide 9: Contents
Contents 1 Wealth Management - a large structural opportunity in India 3 2 EWM - valuable franchise in a high opportunity segment 8 3 Way forward - focus areas 13 7
Slide 10: Strategic choices to leverage the opportunity
Strategic choices to leverage the opportunity 1 2 Affluent, HNI, UHNI Hybrid Delivery Channel over over Mass Affluent, Retail RM led / fully digital 3 4 Direct access in top ~30-35 cities Multi Product Suite over over Wide geography Monoline offering 8
Slide 11: EWM – India's preferred wealth management platform
EWM – India’s preferred wealth management platform Revenue Profit after tax ~INR 1,186 Cr ~INR 203 Cr ~33% YoY growth ~12% YoY growth Customer Count LAS Book Customer Assets # 777,700 ~INR 2,500 Cr ~INR 193,500 Cr ~16% YoY growth ~63% YoY growth ~33% YoY growth Operating in 3 major business units -
Slide 12: With strong growth in customer franchise
With strong growth in customer franchise AUA (INR Cr) Customer Count (#) 1,93,500 7,77,700 3,75,000 29,500 FY16 Dec 21 FY16 Dec 21 10
Slide 13: Enabled by customer-centric tech platforms
Enabled by customer-centric tech platforms Intellivest Mobile Mobile Trader Edelweiss PWM App MF distribution app for partner’s Richer charts, screeners, scanners client and integrated fintech powered Personal connect for UHNI clients features Digital Onboarding Automated Report generation Enhanced
Slide 14: Contents
Contents 1 Wealth Management - a large structural opportunity in India 3 2 EWM - valuable franchise in a high-opportunity segment 8 3 Way forward - focus areas 13 12
Slide 15: Way forward – focus areas
Way forward – focus areas • Grow wealth management platform for Affluent, HNI and UHNI segments • UHNI: Augment Capacity and Talent and look for • HNI and Affluent: Client Acquisition, Digital Capabilities and Geographic expansion • Maintain dominance in Capital Markets • Scale Investment Management
Slide 16: 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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