Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q3 FY24 Earnings Presentation
54 slides from Nuvama Wealth Management's earnings presentation, Feb 13, 2024
Slide 1: Exchange cover letter: Earnings Release & Investor Presentation
NWML/SEC/2024/71 February 13, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Dalal Exchange Plaza, 5 Floor, Plot C/1, G Block, Bandra - Street, Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400
Slide 2: Earnings Release: Q3 FY24 Results
Annexue 1 Earnings Release For Immediate Publication Nuvama Wealth Management Limited Announces Q3 FY24 Results, Demonstrating Strong Year-over-Year Growth of 66% in Operating PAT Mumbai, 13th February 2024: Nuvama Wealth Management Limited (NSE, BSE: NUVAMA), one of India’s leading Wealth Managemen
Slide 3: CEO commentary and key highlights
Commenting on the performance Ashish Kehair, MD & CEO of Nuvama Group said, “The economic growth momentum for India has been strong in 2023 and our integrated platform captured many of the growing opportunities. In Q3 all our segments performed exceptionally well. We recorded 38% YoY increase in rev
Slide 4: Asset Management and Capital Markets highlights; About Nuvama
2. Asset Management a. Revenues (ex-carry): ₹14 Cr in Q3 FY24, grew by 29% YoY and ₹37 Cr in 9M FY24, grew by 37% YoY. b. AUM: ₹6,573 Cr as at end of Q3 FY24, grew by 27% YoY, of which Public Markets AUM stood at ₹ 1,672 Cr, grew by 120% YoY. c. Commercial Real Estate (CRE) fund launched, a 50:50 jo
Slide 5: Nuvama Q3 FY24
NUVAMA Annexure 2 Investor Presentation Q3 FY24 1
Slide 6: Contents
Contents 1 2 3 4 About Us Industry Landscape Performance Overview Strategy 2
Slide 7: Contents Summary
Contents Summary ▪ Strong institutional ownership: PAG (promoter of company), 1. ABOUT US one of the largest Asia-based alternative investment managers ▪ Integrated wealth management platform with exhaustive 2. INDUSTRY suite of offerings LANDSCAPE ▪ Only established player with proven execution acr
Slide 8: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ ₹ 3.3 trillion 2,900+ employees across 90+ offices ~1,100 RMs Strong Governance Unique Proposition Experienced board and Multi Client S
Slide 9: Majority owned by PAG, a leading investment firm
Majority owned by PAG (promoter of company) a LEADING INVESTMENT FIRM One of the largest Asia-based alternative investment managers with over USD 53B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 3 USD 53B+ 10
Slide 10: Comprehensive wealth management platform with exhaustive suite of offerings
COMPREHENSIVE WEALTH MANAGEMENT PLATFORM with exhaustive suite of offerings Our vision is to provide our clients with comprehensive and tailored wealth management solutions and advice We Serve We Provide Access To 1. Products 2. Advisory 3. Capital Markets UHNI and Family Offices Third Party Proprie
Slide 11: Evolved into an integrated wealth management platform
Evolved from individual businesses into an INTEGRATED WEALTH MANAGEMENT PLATFORM 4. Listed, Strong Governance Company to 3. Transitioned Smoothly, Deliver Long-term Value Operating with Independent with PAG as the Promoter 2. Global Partnership Board, Governance, Operations Validating Platform and M
Slide 12: Well-positioned in this evolving wealth space
WELL-POSITIONED in this evolving wealth space Only scaled player in both client Culture Client segments with “Full Platform” capabilities Established UHNI and Wealth Managers High Family Boutique Offices Private Banks High Orientation RM / Client Networth & Domestic Banks Affluent Individuals Fintec
Slide 13: Established wealth manager covering client segments with majority of wealth
As an ESTABLISHED WEALTH MANAGER, we cover client segments constituting majority of wealth ~35K 70-75% UHNI Households of total financial ~30 lacs HNI & AFFLUENT wealth Households MASS MARKET RETAIL 9
Slide 14: A high growth company with diversified earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Diversified Revenue Streams Revenue Across Synergistic Segments Wealth & Asset ₹ 1,575 ₹ 1,016 Management ₹ 1,322 +19% leading the ₹ 750 +32% growth ₹ 998 ₹ 484 ₹ 389 ₹ 336 ₹ 331 ₹ 167 ₹ 171 ₹ 158 ₹ 20 ₹ 68 - FY21 FY22 FY23 FY21
Slide 15: Unique business model enabling seamless client solutioning
UNIQUE BUSINESS MODEL, enabling value and seamless client solutioning across ecosystem Small & Medium UHNI Business Owners Family Offices & Business Owners HNI Advisory & Unique Research Products Referrals & Client Distribution Insights Corporates Affluent & Institutions Individuals ONE NUVAMA 11
Slide 16: Contents Summary
Contents Summary ▪ India's financial services sector has secular tailwinds 1. ABOUT US o Financial wealth would continue to grow rapidly o Investment asset class will grow even faster 2. INDUSTRY LANDSCAPE o Rising formal penetration will multiply the opportunity ▪ Making India’s wealth industry a s
Slide 17: Wealth management in India is nascent and a huge opportunity
In India WEALTH management is at a nascent stage and presents a HUGE OPPORTUNITY 1 2 3 GDP Growth Forecast Total Wealth to GDP Ratio (~) Share of Financial Wealth % (~) Globally India Matured Markets India Matured Markets India 2-3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India M
Slide 18: Investment asset class growing fast driven by value migration
Investment asset class is growing fast driven by VALUE MIGRATION and has a LONG RUNWAY AUM CAGR AUM / Premium to GDP Asset Class Last 10Y India US / Global Mutual Funds 20% 16% 116% AIF 70% 1% 13% Insurance 13% 4% 11% India to become the 4th largest private wealth market globally by 2028 14
Slide 19: Making this a structural and scalable play
Making this a STRUCTURAL and SCALABLE play ▪ Enhanced regulatory focus Consolidation ▪ Technology disruptions ▪ Increasing product complexity Greater ▪ Demographics and rising affluence Growth ▪ Critical to client Attractive ▪ Low capital requirements - High RoE Economics ▪ Concentration of wealth -
Slide 20: Contents Summary
Contents Summary ▪ Revenues: Q3 FY24 stood at ₹ 558 Cr, grew by 38% YoY and 1. ABOUT US 9M FY24 at ₹ 1,467 Cr, grew by 29% YoY ▪ Operating PAT: Q3 FY24 stood at ₹ 176 Cr, grew by 66% YoY and 9M FY24 at ₹ 416 Cr, grew by 64% YoY 2. INDUSTRY LANDSCAPE ▪ Sustained growth in Wealth and Asset Management,
Slide 21: Consolidated Performance
Consolidated Performance 17
Slide 22: Business Summary: Q3 and 9M FY24
Business Summary: Q3 and 9M FY24 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,500+ ~1,100 ₹ 2,41,837 Cr Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange
Slide 23: Business Summary: Q3 and 9M FY24
Business Summary: Q3 and 9M FY24 STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES Q3 FY24 9M FY24 9M FY24 ₹ 558 38 % ₹ 1,467 29 % 63% 766 bps Revenue ( Cr and YoY) Revenue ( Cr and YoY) Cost to Income (% and YoY) ₹ 176 66 % ₹ 416 64 % 22.7% 605 bps Operating PAT ( Cr and YoY) Operating PAT (
Slide 24: Key Highlights: Q3 and 9M FY24
Key Highlights: Q3 and 9M FY24 ▪ Total Revenues: Q3 FY24 stood at ₹ 558 Cr, grew by 38% YoY and 9M FY24 at ₹ 1,467 Cr, grew by 29% YoY o Wealth Management: ₹ 305 Cr in Q3, grew by 18% YoY and ₹ 858 Cr in 9M, grew by 17% YoY REVENUE o Asset Management1: ₹ 13 Cr in Q3, grew by 29% YoY and ₹ 46 Cr in 9
Slide 25: Consolidated Performance: Q3 and 9M FY24
Consolidated Performance: Q3 and 9M FY24 Particulars – All figures are in ₹ crores Q3 FY24 Q2 FY24 Q3 FY23 YoY 9M FY24 9M FY23 YoY Total Revenue 1 558 492 404 38% 1,467 1,136 29% Wealth Management 305 281 259 18% 858 732 17% Asset Management 13 19 10 29% 2 46 59 37% 2 Capital Markets 237 190 132 79%
Slide 26: Segmental Summary: Q3 and 9M FY24
Segmental Summary: Q3 and 9M FY24 Wealth Management Asset Management Capital Markets 22
Slide 27: Nuvama Wealth: Introduction
Nuvama Wealth: Introduction One of the leading wealth managers in Affluent and HNI client segments Well scaled platform Wide presence across India ₹ ~74,000 Cr of client assets ~1,000 RMs and 7,000+ Active External Wealth Managers (EWM) 1.1+ million clients. ~20% serviced by RMs & External Wealth Ma
Slide 28: Nuvama Wealth: Value Proposition
Nuvama Wealth: Value Proposition 01 Multi-Product and Open Architecture Wide bouquet of investment solutions across asset classes and access to seasoned products Unbiased Solutions 02 Offering unbiased and customized solutions as per client’s needs, portfolio and risk appetite Hybrid Ecosystem 03 Co
Slide 29: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) By Solutions By Channel MPIS NII Relationship Manager +21% Brokerage Others External Wealth Manager +60% 173 486 402 49% 48% 74% 72% 108 +17% +24% 145 169 23% 26% 58 47 19% 17% 26% 28%
Slide 30: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition - Solution (%) Net New Money (₹ Cr and YoY) +32% MPIS Loan Broking Others +7% 73,855 4,362 28% ₹ 15,833 29% ₹ 21,318 4% 4,095 4% 55,954 66% 66% 1% 1% 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 1.02
Slide 31: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled platform High-quality team ₹ ~168,000 Cr of client assets 115+ relationship managers 3500+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score
Slide 32: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings CLIENT PROFILE (A) Bespoke Solution (B) Investment Advisory (C) Managed Accounts Suite Investment Policy Statement (IPS) Institutionalized Portfolio Family Offices Fac
Slide 33: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr And YoY) From ARR Earning Assets +13% From Transactional Assets 372 130 130 330 53% 58% +19% 15% 136 46 54 114 47% 42% Q3 FY23 Q3 FY24 9M FY23 9M FY24 9M FY23 9M FY24 Q3 FY23 Q3 FY24 9M FY23 9M
Slide 34: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (%) 1 Net New Money (₹ Cr and YoY) 1 ARR Earning Assets +14% +28% Transactional Assets 1,67,982 10,068 22% ₹ 23,557 21% ₹ 30,604 8,843 1,31,252 78% 79% 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 1
Slide 35: Nuvama Asset Management: Introduction
Nuvama Asset Management: Introduction Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of ₹ 6,573 Cr Private Markets + Public Markets + Commercial Real Estate 78% of this being fee paying High-Quality Investment Team Strong Distribution 20+
Slide 36: Nuvama Asset Management: Value Proposition
Nuvama Asset Management: Value Proposition 01 Differentiated Solutions Addressing client needs by offering unique products, powered by deep insights from wealth clients Proven Fund Management Capabilities 02 Established track record across public markets and private products. Delivering top quartile
Slide 37: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Revenue ex-carry (₹ Cr and YoY) Client Assets (₹ Cr and YoY) Fee Paying Client Assets (₹ Cr and YoY) +27% +37% 6,573 +38% 37 5,121 5,159 27 3,724 +29% 14 10 Q3 FY23 Q3 FY24 9M FY23 9M FY24 Yield on 9M FY23 9M FY24 9M FY23 9M FY24 average fee-paying 1.03%
Slide 38: Launch of joint venture with Cushman & Wakefield for Commercial Real Estate
Launch of joint venture with Cushman & Wakefield for Commercial Real Estate 1st Fund launched 1. Commercial real estate expertise 1. Asset management expertise Investment Management 2. Best-in-class capabilities to identify, 2. Client insights build, lease and operate assets 3. Distribution network
Slide 39: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) +62% Asset Services 557 Institutional Equities and Investment Banking 225% 243 31% 40% +79% 344 202% 237 121 132 69% 75 60% 40 Q3 FY23 Q3 FY24 9M FY23 9M FY24 9M FY23 9M FY24 Q
Slide 40: Historical Trends
Historical Trends 7’ nuvama
Slide 41: Business Summary: Last 3 years
Business Summary: Last 3 years Client Assets - ₹ Cr Revenue - ₹ Cr Operating PAT - ₹ Cr CAGR : +21% CAGR : +26% CAGR : +36% 2,31,000 368 2,13,000 1,575 1,322 292 1,59,000 998 200 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Numbers have been rounded off for presentation purposes 37
Slide 42: Consolidated Performance: Last 3 years
Consolidated Performance: Last 3 years Particulars – All figures are in ₹ crores FY21 FY22 FY23 CAGR 2Y Total Revenue 1 998 1,322 1,575 26% Wealth Management 484 750 1,016 45% Asset Management 0 20 68 - Capital Markets 503 559 489 -1% Total Costs 731 930 1,086 22% Employee Cost 472 640 759 27% Opex
Slide 43: Won accolades across credible platforms
Won accolades across credible platforms Select Awards and Recognitions Best Private Best for Bank for Discretionary Best Domestic Best Private Bank Best Private Bank UHNW Clients, Portfolio Private Bank, South Asia Highly Management in India Commended India The Asset Triple A Private Global Private
Slide 44: Contents Summary
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place ▪ Adequately capitalized to achieve future goals 2. INDUSTRY LANDSCAPE ▪ Well defined trajectory for each segment 3. PERFORMANCE OVERVIEW 4. STRATEGY 40
Slide 45: Our Strategic Advantage
Our STRATEGIC ADVANTAGE Strong promoters with experienced management team PAG, promoter of the company, is a leading investment firm, with AUM of over USD 53 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehen
Slide 46: Long-term objectives
LONG-TERM objectives Wealth and Asset Operating leverage to deliver Be client-first in Management to be key drivers significant improvement in cost everything we do and would constitute 75 - 80% to income ratio of the earnings 42
Slide 47: Well defined trajectory for each segment: Wealth Management
Well DEFINED TRAJECTORY for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS Leverage tech to optimize Continue journey from Expand to NRI client cost-to-serve and product to portfolio segment and deepen enhance experience In 5 years grow Grow Wealth solutions existing relationships Cli
Slide 48: Well defined trajectory for each segment: Asset Management
Well DEFINED TRAJECTORY for each segment LONG TERM STRATEGY FOCUS AREAS EXECUTION MARKERS Build full suite of Continue to scale Expand Significantly Scale alternatives public market Distribution strategies In 5 years grow Asset AUM to 6-8x Management On-going On-going Nuvama Private Equity Long Only
Slide 49: ESG: Let's do it right - Progress and Outcomes
ESG: Let’s do it right - Progress and Outcomes Our ESG Journey ESG Snapshot Rebranded with a ‘customer-centric’ focus Conducted Materiality Assessment Head office All offices 2128 tCO2e Awareness NPS 73 IGBC gold E-waste GHG Around Increased certified certified emissions conscious usage customer Dev
Slide 50: Annexures
INalatsy.lisys a nuvama
Slide 51: Annexure 1: Bridge to financial statements
Annexure 1: Bridge to financial statements Q3 FY24 Q2 FY24 # Particulars - ₹ cr As per As per Netting Netting Financial Adjusted Financial Adjusted (1) (1) Statements Statements A Revenue 842 -284 558 737 -245 492 B Expense 612 -284 328 546 -245 302 C PBT 230 - 230 191 - 191 D Share of Profit in Ass
Slide 52: Annexure 2: Our Board
Annexure 2: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Aswin Vikram Chairman & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nom
Slide 53: 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 Nuvama Wealth Management Limited or any of its subsidiaries and associate companies (“Nuvam
Slide 54: Thank You
Thank You For more details refer data book published on our website. Click here to access. # Data Book Contents 1 Consolidated Performance 2 Segmental Performance - Wealth Management a) Nuvama Wealth b) Nuvama Private 3 Segmental Performance - Nuvama Asset Management 4 Segmental Performance - Nuvama
Nuvama Wealth Management — Q3 FY24 Earnings Presentation on 6ix