360 One Wam Limited · NSE:360ONE
360 One Wam — IIFL Wealth & Asset Management — Q4 FY20 Earnings Presentation
40 slides from 360 One Wam's earnings presentation, 2020
Slide 1: Quarterly Performance Review Q4 FY 20
IIFL WEALTH & ASSET MANAGEMENT Quarterly Performance Review Q4 FY 20 #1 Wealth Manager in India #1 Manager of Alternates in India Strictly Private and Confidential - Internal Circulation Only
Slide 2: Agenda
AGENDA BUSINESS HIGHLIGHTS Market Environment FINANCIAL SUMMARY OUR DIFFERENTIATORS SEGMENT DEEP DIVE AWARDS, KEY PERSONNEL & SHAREHOLDERS 2
Slide 3: Business Highlights
BUSINESS HIGHLIGHTS NFL WEALTH & ASSET MANAGEMENT
Slide 4: A Leader in Wealth Management & Alternates
A LEADER IN WEALTH MANAGEMENT & ALTERNATES #1 Wealth Manager in India #1 Manager of Alternates in India WEALTH MANAGEMENT ASSET MANAGEMENT • Discretionary • Alternate Investment Funds • Non-Discretionary • Discretionary Portfolio Management • Broking and Distribution Services • Mutual Funds • Corpor
Slide 5: IIFLW COVID Response
IIFLW COVID 19 RESPONSE CLIENTS EMPLOYEES • Intensified engagements with clients, supported by RMs, Research, Solutions & • Work from Home seamlessly Servicing teams Implemented • Multiple outreach channels established • Successfully implementation of with dedicated servicing desks BCP with enhanced
Slide 6: Market Environment & Economic Update
MARKET ENVIRONMENT & ECONOMIC UPDATE Real GDP growth rate (YoY) Stimulus* Country/ region 3 year average 2020$ 2021$ (% of GDP) (2017-19) United States of America 2.5 -6.1 4.0 13.0 Euro area 1.9 -9.1 4.5 33.2 Japan 1.1 -6.1 2.5 41.8 China 6.5 1.0 6.9 9.5 India 5.8 -3.2 3.1 9.4 Brazil 1.2 -8.0 2.2 10
Slide 7: Strategy Update
STRATEGY UPDATE • Client appetite sharply moved to risk off during the quarter. High net worth Clients showed high inclination towards short term high quality liquid instruments and for the longer term only sovereign / quasi sovereign and bank deposits and funds. This has seem some bit of reversal i
Slide 8: L&T Wealth Acquisition - Update
L&T WEALTH ACQUISITION - UPDATE • Statutory Approval for the L&T merger Business Snapshot received on 22nd of April 2020 • AUM on 31st March 2020: Rs. • Team onboarded and effectively 10,807 Crs integrated at each location (during the • ARR Assets: Rs. 6,093 Crs lockdown period) • TBR Assets: Rs. 4,
Slide 9: Financial Summary
FINANCIAL SUMMARY NFL WEALTH & ASSET MANAGEMENT
Slide 10: Business Summary (1/2)
BUSINESS SUMMARY (1/2) QoQ growth %; YoY growth % FY 20 FY 20 Q4 FY 20 Q3 FY 20 Q2 FY 20 Q1 FY 19 FY 19 Q4 INR Cr Q4 vs Q3 FY 20 FY 20 vs FY 19 Closing AUM Recurring Revenue Assets 62,595 62,595 70,434 64,016 63,530 58,270 58,270 -11.1% 7.42% Transactional / Brokerage Assets 94,302 94,302 101,703 99
Slide 11: Business Summary (2/2)
BUSINESS SUMMARY (2/2) Rs in Crs. FY 20 FY 19 Particulars Avg AUM Amount Avg AUM Amount ARR Revenue (A) 60,432 535 51,350 444 Fees on PMS - Discretionary / Non Discretionary & Advisory 13,217 35 5,190 15 Management Fees on Funds Managed By IIFL AMC 21,356 146 17,084 80 Trail Commission on Third Part
Slide 12: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Continued focus on ARR assets – increase of 7.4% YoY to Rs 62,595 Crs AUM & Net • Net flows remained strong at Rs 12,434 Crs for FY20 and Rs 3,527 Crs for Q4 Flows • Significant momentum in IIFL One – continues to be biggest focus area for Wealth. Assets increased 103.3% Y
Slide 13: Key Business Highlights – AUM and Net Flow
KEY BUSINESS HIGHLIGHTS – AUM AND NET FLOW Assets Under Management (Rs. Cr.) Excluding Custody Net Flows including Custody Annual Recurring Revenue Assets Transactional / Brokerage Assets Less: Double counted assets 142,312 143,856 1,50,762 1,67,746 12,424 1,60,034 136,601 1,38,792 20,136 1,30,981 9
Slide 14: Key Business Highlights – Revenue, Cost and Profitability
KEY BUSINESS HIGHLIGHTS – REVENUE, COST AND PROFITABILITY Revenues from Operations (Rs. Cr.) & Yields (%) QoQ Cost Mix (Rs. Cr.) Annual Recurring Revenue 48.0% 60.2% 56.3% 65.3% 63.5% Transactional / Brokerage Income Ret. On Revenue from Operations Fixed Employee Costs Admin and Other Expenses 0.73%
Slide 15: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Rs in Crs. As at As at As at As at ASSETS LIABILITIES AND EQUITY 31-Mar-20 31-Dec-19 31-Mar-20 31-Dec-19 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 936 242 (a) Derivative financial instruments 249 266 (b) Bank Balance other than (a) above 242
Slide 16: Breakdown of Investments
BREAKDOWN OF INVESTMENTS Mar 31, Dec 31, Mar 31, Dec 31, 2020 2019 2020 2019 Investments 6,654 5,964 Borrowings 8,862 7,755 Derivative financial instruments [1c] 132 115 Derivative Financial Instruments [1a] 249 266 Investments [1f] 6,512 5,849 Debt Securities [1c] 5,193 3,994 Borrowings (Other than
Slide 17: Break Down of Investments
BREAK DOWN OF INVESTMENTS Value as on 31st Value as on 31st Dec % of Total Investment Type Category Description Mar 20 (in Cr) 19 (in Cr) Investment Govt Securities Govt Securities 3,216 3,205 48% Hedged Investments Perpetuals Various 839 1044 19% Debentures Various 362 115 8% Hedged Investments 4,4
Slide 18: Consolidated Financials – Re-classified Result Table
CONSOLIDATED FINANCIALS – RE CLASSIFIED RESULT TABLE Quarter Ended Year Ended Particulars Mar 31, 2020 Dec 31, 2019 Mar 31, 2019 Mar 31, 2020 Mar 31, 2019 Fee based Income (A) 197 163 184 686 801 1. (iii) Fees and commission Income 218 158 173 678 806 1. (iv) Net gain on fair value changes (Reclassi
Slide 19: Breakdown of Net Fund Based Incomes (YoY)
BREAKDOWN OF NET FUND BASED INCOMES (YoY) Rs in Crs. Average FY 20 Income Expense Net Capital Remarks Deployed Fund Based Income 831 -667 164 2,736 Average Capital Allocation Excluding Goodwill & Intangibles ROA on Loans 465 -233 232 1,906 NIM earned on Average Loans outstanding for the period These
Slide 20: Breakdown of Net Fund Based Incomes (QoQ)
BREAKDOWN OF NET FUND BASED INCOMES (QoQ) Rs in Crs. Average Q4 FY 20 Income Expense Net Capital Remarks Deployed Average Capital Allocation Excluding Goodwill & Total Fund Based 215 -236 -21 2,751 Intangibles NIM on Loans 112 -53 59 1,887 NIM earned on Average Loans outstanding for the period These
Slide 21: Our Differentiators
OUR DIFFERENTIATORS NFL WEALTH & ASSET MANAGEMENT
Slide 22: IIFL Wealth Best Positioned to Win
IIFL WEALTH BEST POSITIONED TO WIN PEOPLE TALENT ACQUISITION TALENT DEVELOPMENT TALENT RETENTION Strong platform has attracted Employee equity ownership, strong Wealth management is a high Continuous learning through quality talent. Over 250 RM’s, internal culture has led to probably personal interf
Slide 23: High Employee Retention
HIGH EMPLOYEE RETENTION RM Buildup 50% of Team Leaders have more than 5 year vintage in IIFL Wealth Wealth - Teamleaders Wealth - RM 0-1 Years 350 299 300 274 4 250 1-3 Years 250 7+ Years Weighted 14 27 average tenure 200 177 183 236 210 of all Team 189 Leaders is 150 100 123 129 5.8 yrs 11 50 8 54
Slide 24: Leads to Low Client Attrition and High Productivity
LEADS TO LOW CLIENT ATTRITION AND HIGH PRODUCTIVITY No. of relevant families Client Attrition <2.5 % per annum 28.6% 18.9% 16.9% 17.7% 9.0% 0.96% 1.4% 0.87% 0.40% 052% Total Existing Family count 5,322 No. of clients lost AUM lost as a % of Total AUM Total Relevant New Family count 5,1764 121 14 0 4
Slide 25: Unique Positioning in Alternates
UNIQUE POSITIONING IN ALTERNATES Leading player in the alternate segment Private Equity 3 Mid Stage 1 Seed Stage 2 Early Stage 4 Pre-IPO ₹ 8,771 Cr Diversified Public Equity 6 Concentrated 5 (UCITS and 7 Thematic 8 Long-Short ₹ 7,292 Cr Domestic Funds) Credit 9 Liquid Funds 10 Structured Credit 11 D
Slide 26: Segment Deep Dive
SEGMENT DEEP DIVE NFL WEALTH & ASSET MANAGEMENT
Slide 27: Consolidated Metrics by Business Segment
CONSOLIDATED METRICS BY BUSINESS SEGMENT Assets Under Management - YoY (Rs. Cr.) Assets Under Management - QoQ (Rs. Cr.) Wealth Management Asset Management 167,746 172,763 178,921 AMC Assets Distributed by Wealth 160,034 167,746 173,245 Custody Assets 160,034 31,145 21,243 28,907 28,159 130,981 31,1
Slide 28: Consolidated Metrics YoY
CONSOLIDATED METRICS YOY Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Annual Recurring Revenue Retention on Revenue from Operations 138,792 1,200 1.40 % Transactional / Brokerage Assets 136,601 Transactional / Bro
Slide 29: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Assets Under Management (Rs. Cr.) Excluding Custody Revenues from Operations (Rs. Cr.) & Yields (%) Annual Recurring Revenue Assets Transactional / Brokerage Assets Annual Recurring Revenue Retention on Revenue from Operations Less: Double counted assets Transactional / Brok
Slide 30: Consolidated Metrics YoY
CONSOLIDATED METRICS YoY Recurring Revenue Assets (Rs. Cr.) Recurring Revenues (Rs. Cr.) PMS - Discretionary / Non-Discretionary / Advisory Fees on PMS - Discretionary / Non-Discretionary / Advisory Funds Managed by IIFL AMC 62,595 Management Fees on Funds Managed by IIFL AMC 535 Mutual Funds Distri
Slide 31: Consolidated Metrics QoQ
CONSOLIDATED METRICS QoQ Recurring Revenue Assets (Rs. Cr.) Recurring Revenues (Rs. Cr.) PMS - Discretionary / Non-Discretionary / Advisory Funds Managed by IIFL AMC Fees on PMS - Discretionary/Non-Discretionary/Advisory Management Fees on Funds Managed by IIFL AMC Mutual Funds Distributed Managed A
Slide 32: Wealth Management
WEALTH MANAGEMENT AUM by Products YoY (Rs. Cr.) AUM by Products QoQ (Rs. Cr.) PMS - Discretionary / Non-Discretionary / Advisory Mutual Funds Distributed Ret. on Rev from PMS - Discretionary / Non-Discretionary / Advisory Mutual Funds Distributed Ret. On Rev from Managed Accounts Distributed Equity
Slide 33: Break Down of Loan Book
BREAK DOWN OF LOAN BOOK Loan Book Loan Spread 2.7% 6,715 2.4% 1.9% 4,798 1.4% 3,615 3,536 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY 20 • Loan book ~12% lower QoQ, average book remained steady on Q1 FY 20 Q2 FY 20 Q3 FY 20 Q4 FY 20 FY 20 QoQ basis • Spreads improved by ~50 bps YoY, driven by increased yi
Slide 34: Asset Management
ASSET MANAGEMENT AUM by Products YoY (Rs. Cr.) and Yield % AUM by Products QoQ (Rs. Cr.) and Yield % Discretionary Portfolio Management Schemes Alternative Investment Fund Discretionary Portfolio Management Schemes Alternative Investment Fund 0.68% 25,000 1.60% 30,000 0.70% Mutual Fund Ret. On Reven
Slide 35: Awards, Key Personnel & Shareholders
AWARDS, KEY PERSONNEL & SHAREHOLDERS 35
Slide 36: Euromoney Awards – Clean Sweep; Multiple Awards & Accolades
EUROMONEY AWARDS – CLEAN SWEEP; MULTIPLE AWARDS & ACCOLADES Proud Recipient of 106 Awards till date Best Private Banking Outstanding Wealth Mgmt Services Overall – India 2020 Technology Initiative -2019 Best Artificial Intelligence, Best Private Bank, 2018 India 2018 Best Private Bank, India Best We
Slide 37: Experienced Management Team with Deep Domain Expertise
EXPERIENCED MANAGEMENT TEAM WITH DEEP DOMAIN EXPERTISE Karan Bhagat 20+ years of experience WEALTH AMC CORPORATE FUNCTIONS Yatin Shah Anup Maheshwari Anshuman Maheshwary 24+ years of experience COO 16+ years of experience 20+ years of experience Anirudha Taparia Prashasta Seth Mihir Nanavati Unliste
Slide 38: Marquee Institutional Shareholding and Experienced Board
MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD Shareholding Split Lock in / Liquidity as on 31st March 2020 No Lock In Lock In (1 Yr) 21.36% 0.40% Promoters 14.07% 8.86%* 18.52% 0.34% General Atlantic - 21.36% Fairfax 18.52% - RIMCO 4.35% 22.93% Other Institutions 12.99% 5.84% Promoters Pu
Slide 39: Disclaimer
DISCLAIMER This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasin
Slide 40: Thank You
THANK YOU. LIFL WEALTH & ASSET MANAGEMENT
IIFL Wealth & Asset Management — Q4 FY20 Earnings Presentation on 6ix