53 slides from Computer Age Management Services's earnings presentation, Nov 8, 2023
Slide 1: Cover letter to stock exchanges
Your Services ! I II Solutions Partner 08th November 2023 BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor, Plot No. C/1, Dalal Street G Block, Bandra Kurla Complex, Bandra Mumbai 400 001 (East), Mumbai 400 051 Scrip Code: 543232 Trading Symb
Slide 2: Investor Presentation November 2023
Our Mission... Your Growth COMPUTER AGE MANAGEMENT SERVICES LIMITED C/MS Investor Presentation November 2023 ::=,·: o9 e 00 0 I g [=DJ l l 00 o09 o6°o o 0 0 60°°
Slide 3: Safe Harbour Statement
Our Mission... Your Growth Safe Harbour Statement CMS This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects,
Slide 4: FY24 Q2 presenters
Our Mission.. Your Growth CAMS Anuj Kumar • Managing Director • • , A 5 ! • • • d • • • « • • Ram Charan Sesharaman Chief Financial Officer FY24 Q2 Earnings Presentation
Slide 5: Presentation flow
Our Mission... Your Growth Presentation flow CMS Business Overview Financials About CAMS Appendix Key Highlights for Q2 FY’24 Revenue & Financial Highlights – Q2FY24 Business at a Glance Corporate Structure Page No: 6-7 Page No: 20-21 Page No: 36 Page No: 47 AAuM Q2FY24 – MF industry & Revenue & Fin
Slide 6: Business Overview
Our Mission... Your Growth C/MS BUSINESS OVERVIEW
Slide 7: Key Highlights for the Q2 FY'24
Our Mission... Your Growth Key Highlights for the Q2 FY’24 CMS Mutual Funds Beyond Mutual Funds Financial Highlights Q2 FY24 was marked by historic highs, Beyond MF, the sustained focus on Revenue grew by 13.5% YoY key milestones and expanding business expanding Non-MF businesses led to a EB
Slide 8: CAMS MF – increased share in equity AuM and historic highs
CAMS MF – The Second quarter was marked by increased share in equity AuM and historic Our Mission... Your Growth highs in key metrics – transaction volumes, unique investors and equity net sales CMS New Highs in Transaction Volume Gross Sales – Equity Net Sales – Equity 66% Share in 67% Share in 99%
Slide 9: Mutual Fund Industry & CAMS AAuM – Q2FY24
Our Mission... Your Growth Mutual Fund Industry & CAMS AAuM – Q2FY24 CMS st I \ CAMS – Market Share (based on Quarterly AAuM Serviced by CAMS Industry AAuM AAuM) 68.5%* ₹ 32.5 Trillion ₹ 47.7Trillion 20.3% YoY 20.5% YoY Net flows into equity assets increased ~3x in Q2 FY24 8.7% QoQ 9.0% QoQ Equity A
Slide 10: Operational Metrics – Q2FY24
Our Mission... Your Growth Operational Metrics – Q2FY24 CMS SIP Book Systematic Transaction Volume Transactions 40.5 Mn. 140.9 Mn. Processed (as on 30th Sep 23) 106.1 Mn. YOY: 24% YoY: 24% YoY: 13% QoQ: 10% QoQ: 8% QoQ: 1% Live Investor Folios Unique Investors 63.8 Mn. Serviced (as on 30th Sep 23) 2
Slide 11: Mutual Fund Industry & CAMS AAuM – H1FY24
Our Mission... Your Growth Mutual Fund Industry & CAMS AAuM – H1FY24 CMS st I \ CAMS – Market Share AAuM Serviced by CAMS Industry AAuM (based on Half yearly AAuM) 68.5%* ₹ 31.2 Trillion ₹ 45.7Trillion 17.2% YoY 17.5% YoY Net flows into equity assets increased by 14.2 %in H1 FY24 YoY Equity AAuM – C
Slide 12: Operational Metrics – H1FY24
Our Mission... Your Growth Operational Metrics – H1FY24 CMS SIP Book Systematic Transaction Volume Transactions 40.5 Mn. 269.2 Mn. Processed (as on 30th Sep 23) 211.2 Mn. YOY: 20% YoY: 24% YoY: 15% Unique Investors Live Investor Folios Serviced 63.8 Mn. 28.3 Mn. (as on 30th Sep 23) (as on 30th Sep 2
Slide 13: Alternatives business growth, Rs.2 Trillion assets under service
Our Mission... Your Growth The Alternatives business growth is at a healthy clip and our assets under service touched Rs.2 Trillion Milestone CMS New client acquisition momentum continues to be strong with the 0 business winning 15 new to CAMS logos in Q2FY24 .,g li Launch of WealthServ 2.0 whic
Slide 14: AA+TSP business gaining momentum – CAMSfinserv
AA+TSP business is gaining momentum with expanded outreach and superior Our Mission... Your Growth CAMSfinsev product positioning CMS S CAMS finserv continues to strengthen its FIP base, becoming 2 the First AA to onboard mutual funds as FIPs in the industry. Eight insurance companies have also be
Slide 15: CAMSPay product offerings and UPI autopay
CAMS#ay° product offerings further fortified, UPI autopay offering expands beyond Our Mission... Your Growth MF with adoption by fintech channels and prominent 3rd party apps CMS 0 >50% Market Share ₹5,000 Crore+ I J In Mutual Funds Ecosystem for RP* worth of Monthly Transactions 2 Lakh+ ₹520 Crore
Slide 16: Momentum in new client addition – KYC and CAMS KRA
Momentum continues in new client addition and revenue growth CAMS ‘10-Minute KYC’ – Industry First AI embedded KYC solution to Onboard Customers Instantly Fully compliant KYC solution to service entities governed by all 4 financial sector regulators – with AI assisted Face match, OCR and Livelin
Slide 17: CAMSRep Insurance Repository & Services
Our Mission... Your Growth CAMSRep Insurance Repository & Services scaling new highs in eIA and epolicy and ramp ups CMS The singular platform in India to service both Insurance companies & policy holders Bima Central platform goes live with insta eIA sign up for policyholders 4 Insurer integrat
Slide 18: CAMS CRA – eNPS and API stack for POPs
CAMS CRA – focusing on simplifying customer journeys for eNPS and extending Our Mission... Your Growth API stack for POPs CMS CAMS NPS makes inroads into the POP and corporate segment with 62% of its new subscription from the retail POP channel Continues to retain No:2 position in the eNPS segment,
Slide 19: Think360 AI – Building on Synergies with CAMS
Think360 AI – Building on Synergies with CAMS CAMS 000 A full-stack Data Science and AI-focused firm Comprehensive 360-degree view of the AI technologies landscape focused on creating Tail360" innovative solutions using cutting-edge technologies, Integrated and intelligent suite of products, solutio
Slide 20: Financials
Our Mission... Your Growth C/MS FINANCIALS
Slide 21: Revenue Highlights – Q2FY24
Our Mission... Your Growth Revenue Highlights – Q2FY24 CMS 13.5 % YoY Revenue ₹27,508.3 Lakh 5.3% QoQ Asset 9.1% YoY Non- 13.6% YoY Non-MF 47.1% YoY Based Asset Revenue 5.8% QoQ Based 0.7% QoQ 7.4% QoQ Revenue Revenue Asset Mix Equity component: Q2 FY24 @ 47.7% (Q2 FY23: @ 45.0% / Q1 FY24: @ 46.5%)
Slide 22: Financial Highlights – Q2FY24
Our Mission... Your Growth Financial Highlights – Q2FY24 CMS Operating EBITDA – PBT – 39.8% PAT – 29.7% 44.5% Return on Net-Worth* 12,253 11,328 42.4% 8,451 11,024 10,610 10,191 9,699 7,634 7,214 Q1 FY24 Q2 FY23 Q2 FY24 Q1 FY24 Q2 FY23 Q2 FY24 Q1 FY24 n Q2 FY23 Q2 FY24 ** Cash & Cash Equivalent as o
Slide 23: Revenue Highlights – H1FY24
Our Mission... Your Growth Revenue Highlights – H1FY24 CMS Revenue ₹ 53,638.2 Lakh 12.0 % YoY Asset Non- Non-MF Based 7.3% YoY Asset 13.9% YoY Revenue 45.3% YoY Revenue Based Revenue Asset Mix Equity component: H1 FY24 @ 47.1% (H1 FY23: @ 44.1% ) Includes results of think Analytics (subsidiary from
Slide 24: Financial Highlights – H1FY24
Our Mission... Your Growth Financial Highlights – H1FY24 CMS Operating EBITDA – PBT – 38.7% PAT – 28.9% 43.4% Return on Net-Worth* 16,085 23,277 21,519 40.6% 20,414 18,407 13,692 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 14.0 % YoY 16.9% YoY 17.5% YoY Profit numbers are after considering the n
Slide 25: Consolidated Financial Highlights – Quarterly
Our Mission... Your Growth Consolidated Financial Highlights – Quarterly CMS In INR Lakh In INR Lakh Total Operating Revenue OP.EBITDA & OP. EBITDA in % 30,500 0.2 12,000 90.0% 80.0% 0.1 10,000 25,500 70.0% 0 8,000 60.0% 20,500 41.4% 43.8% 44.5% 43.9% 42.2% 44.5% 50.0% -0.1 6,000 40.0% 15,500 -0.2 4
Slide 26: Q2FY24 Standalone P&L
Our Mission... Your Growth Q2FY24 Standalone P&L CMS H1% Particulars (In Rs Lakh) Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1FY24 H1FY23 (FY24 vs FY23) FY23 I Revenue from operations 25,496.58 23,198.19 9.9% 24,357.14 4.7% 49,853.72 45,839.24 8.8% 92,861.69 I I r--------------------------------------------
Slide 27: Q2FY24 Consolidated P&L
Our Mission... Your Growth Q2FY24 Consolidated P&L CMS H1% Particulars (In Rs Lakh) Q2 FY24 Q2 FY23 YoY% Q1 FY24 QoQ% H1FY24 H1FY23 (FY24 vs FY23) FY23 I Revenue from operations 27,508.31 24,237.01 13.5% 26,129.87 5.3% 53,638.18 47,901.62 12.0% 97,182.72 I I r----------------------------------------
Slide 28: Revenue Profile Q2FY24
Our Mission... Your Growth Revenue Profile Q2FY24 CMS Revenue Breakup Revenue (In ₹ Lakh) 10.0% 12.6% 12.9% 13.5% 13.7% 14.4% 13.7% 100% 27,508 76.3% 73.0% 73.4% 26,130 30-Sep-22 30-Jun-23 30-Sep-23 Quarter ended • Non-Mutual Fund • MF-Non assets Based Breakup of Non-Mutual Fund • MF – Assets Based
Slide 29: ESG
Our Mission... Your Growth C/MS ESG
Slide 30: Update on ESG Initiatives
Our Mission... Your Growth Update on ESG Initiatives CMS The company has a Board approved ESG policy The company has reported the BRSR initiatives as part of the Annual Report 2023. As part of the Environmental related initiatives the company partnered with an NGO – Environmentalist Foundation
Slide 31: Environment
Environment We help combat climate change and environmental challenges by ensuring resource efficiency and reducing our environmental footprints. We operate through 281 offices, including one Corporate Office and six back offices. To achieve our environmental goals, we have stringent internal target
Slide 32: Social
Our Mission... Your Growth Social CMS As global citizens, we believe that we can thrive only when the communities in which we operate also thrive. We remain committed to impacting communities through initiatives that improve access to jobs, education, and training, protect the environment, promote p
Slide 33: Social – Commitment to Employees
Our Mission... Your Growth Social CMS Commitment to Employees Grievance Redressal Mechanism for employees The employees undergo mandatory induction training where the stakeholders are made aware of CoC, Human Rights, Company policies, insider trading The Company also conducts refresher trainin
Slide 34: Governance
Our Mission... Your Growth Governance CMS We recognize ethics and governance to be of paramount importance. We are committed to maintaining the highest standards of governance in the conduct of our business and continuously strive to create lasting value for all our stakeholders. Since our inception
Slide 35: Governance – Compliance, Risk and Internal Audit
Our Mission... Your Growth Governance CMS Compliance, Risk and Internal Audit Ethical Practices The Company has extensive Information Security CAMS Code of Conduct Management System in place for ensuring protection of the systems and safeguard information The vigil mechanism & whistle blower p
Slide 36: About CAMS
Our Mission... Your Growth C/MS ABOUT CAMS
Slide 37: CAMS – Business at a glance
Our Mission... Your Growth CAMS – Business at a glance CMS Technology-driven India’s largest registrar Services 9 of the Leveraged domain financial infrastructure and transfer agent 15 largest MFs2; expertise, processes and services provider (“RTA”) of mutual funds ~20 years average and infrastructu
Slide 38: CAMS – Mutual Fund Services Business
Our Mission... Your Growth CAMS – Mutual Fund Services Business CMS Provides a range of technology-enabled infrastructure to mutual funds – Involved through the life cycle of an account from account creation to processing transactions and redemption of the amount invested ls--Ifs J Uniform Regulator
Slide 39: Proprietary technology platforms and mobile applications
CAMS – Proprietary technology platforms and mobile applications for MF, AIF Our Mission... Your Growth and PMS CMS CAMS has developed and implemented various technology platforms and its technology driven infrastructure and services are integral «6 to the operations of its clients •• •• mfCRM Mobili
Slide 40: Mutual Fund Services provided by CAMS
Our Mission... Your Growth Mutual Fund Services provided by CAMS CMS CAMS is involved through the life cycle of an account – from account creation to processing to redemption; Also provides statutory statements, transaction origination, operations, investor and distributor services, risk management
Slide 41: Key Highlights
Our Mission... Your Growth Key Highlights CMS Large and Growing Scalable Mutual Funds Market 1 4 Technology Enabled Ecosystem • • • • • • • • • • Integrated Business Model & • Our Mission… Your Growth • • • Strong Focus on Longstanding Client Relationships in MF Services Business 2 • • • CAMS • • •
Slide 42: Overview of Non-MF Services
CAMS – Overview of Non-MF Services CAMS Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors Market leader servicing over ~180 AIF / PMS / Wealth Serve Clients Offers serv
Slide 43: Overview of Non-MF Services (cont'd.)
Our Mission... Your Growth CAMS – Overview of Non-MF Services (cont’d.) CMS Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors Verification and maintenance of KYC records
Slide 44: Compliance and risk management architecture
Our Mission... Your Growth CAMS – Compliance and risk management architecture CMS Relentless focus on systems and processes has allowed CAMS to become a trusted provider of services to its clients and other stakeholders I I ' Compliance I I ' Cyber Security \ I Assists MF clients with compliance wit
Slide 45: Experienced Board of Directors
Our Mission... Your Growth Experienced Board of Directors CMS Board of Directors ‒ Natarajan Srinivasan -- Audit Committee ‒ Dinesh Kumar Mehrotra ‒ Vijayalakshmi Rajaram Iyer $ Dinesh Kumar Mehrotra ‒ Sandeep Kagzi Chairman & Independent Natarajan Srinivasan Director Independent Director d Nominati
Slide 46: Experienced management team
Experienced management team, with an average work experience of 27 years Our Mission... Your Growth and a demonstrated ability to grow and diversify the business and innovate services CMS Anuj Kumar – Managing Director Ramcharan Sesharaman – Chief Financial Officer Joined the company in March 2016
Slide 47: Appendix
Our Mission... Your Growth C/MS APPENDIX
Slide 48: Corporate Structure
Our Mission... Your Growth Corporate Structure CMS Computer Age Management Services Limited Mutual Funds Services, Alternate Investment Funds Services, Payment Services, Banking and Non-Banking Service Businesses 100% 100% 100% 55% CAMS Insurance Repository CAMS Investor Services Private CAMS Financ
Slide 49: History / Milestones
Our Mission... Your Growth History / Milestones CMS The certificate of registration was issued to our Company was CISPL was Our Company was upgraded and a fresh incorporated on incorporated as certificate of CIRSL was February 13, 2012; Computer Age Our Company was registration as Our Co
Slide 50: Awards and Accolades
Awards and Accolades CAMS ©! . Our Company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards 2015 CIRSL was awarded ‘Best Newcomer Award’ at Asia Insurance Technology Awards CIRSL was awarded ‘Best Service Provider’ award in ‘Feet on Stre
Slide 51: Awards and Accolades
Awards and Accolades CAMS FE CFO Awards CAMS was selected in the Small Enterprises category. CFO Mr. Ramcharan Sesharaman was honoured with the prestigious Award © •... . . . . 2023 BW HR Excellence Awards 2023 For Employee Engagement strategy category Economic Times Datacon Award 2023 under S
Slide 52: Shareholders' Information
Our Mission... Your Growth Shareholders’ Information CMS Stock Data as on 30th Sep 2023 Shareholding Pattern (%) Market Capitalisation Shares Outstanding 12,329.74 Cr. 4,91,22,460 Promoter 19.87% Free Float Scrip Symbol / Code Others 34.07% 12,329.74 Cr. CAMS / 543232 Top Institutional Holders Marke
Slide 53: Thank You
Our Mission... Your Growth Mr. Anish Sawlani, Head - IR C/MS +91 72990 07973 Computer Age Management Services @ Anish.sawlani@camsonline.com THANK YOU Limited (CAMS) Mr. Rajesh Agrawal 0 orient capital +91 99674 91495 Investor Relations @ Rajesh.Agrawal@linkintime.co.in Orient Capital