Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q2 FY2025 Earnings Presentation
55 slides from Nuvama Wealth Management's earnings presentation, October 2024
Slide 1: Investor Presentation Q2 FY25
NUVAMA Investor Presentation Q2 FY25 1
Slide 2: Contents
Contents 1 2 3 4 About Us Industry Performance Strategy Landscape Overview 2
Slide 3: Contents Summary: About Us
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 4: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ ₹ 4.4 trillion 3,300+ employees across 100+ offices 1,300+ RMs Strong Governance Unique Proposition Experienced board and Multi Client
Slide 5: 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 ~USD 55B of assets under management in private equity, real assets, credit & markets Assets Under Management 1 Offices In Asia 2 Total Employees 3 ~USD 55B 8 780+
Slide 6: 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 7: 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 8: 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 9: Established wealth manager covering client segments constituting 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 10: 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 10
Slide 11: A high growth company with diversified and superior quality of earnings
A HIGH GROWTH COMPANY with diversified and superior quality of earnings Revenue All figures are in ₹ crore % are YoY +31% ₹ 2,063 +19% ₹ 1,575 +32% Wealth & Asset ₹ 1,188 ₹ 1,322 ₹ 1,016 Management leading the ₹ 998 ₹ 750 growth ₹ 484 ₹ 476 ₹ 389 ₹ 336 ₹ 331 ₹ 329 ₹ 167 ₹ 171 ₹ 158 ₹ 20 ₹ 68 ₹ 63 -
Slide 12: Focused execution delivering strong and sustainable outcomes
Focused execution delivering STRONG AND SUSTAINABLE OUTCOMES All figures are in ₹ Cr CLIENT ASSETS REVENUES 3Y CAGR 53% 3Y CAGR 30% 3,45,957 4,41,276 27% 2,063 55% 1,575 2,89,281 1,322 1,407 2,12,993 2,31,079 998 909 1,58,645 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OP
Slide 13: Contents Summary: Industry Landscape
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 14: 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 ~3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial India Ma
Slide 15: 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 19% 16% 116% AIF 61% 1% 13% Insurance 12% 3% 11% India to become the 4th largest private wealth market globally by 2028 15
Slide 16: 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 17: Contents Summary: Performance Overview
Contents Summary ▪ Revenues: Q2 FY25 stood at ₹ 740 Cr, grew by 50% YoY and H1 FY25 at ₹ 1,407 Cr, grew by 55% YoY 1. ABOUT US ▪ Operating PAT: Q2 FY25 stood at ₹ 258 Cr, grew by 77% YoY and H1 FY25 at ₹ 479 Cr, grew by 100% YoY 2. INDUSTRY LANDSCAPE ▪ Wealth and Asset Management businesses continue
Slide 18: Achieved new milestones
client assets or, $5 one? Ole wr ot A oth client assets Ge 105s > eO wy ae oN , client assets Cros 5 > es ement A UM CrOsse, 18
Slide 19: Consolidated Performance Q2 FY25
Consolidated Performance Q2 FY25 19
Slide 20: Business Summary: Q2 FY25
Business Summary: Q2 FY25 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 4,050+ 1,300+ ₹ 3,05,824 Cr Managed Products Client Assets Advisory Ultra High Networth Families Wealth RMs Wealth Management Exchange Traded
Slide 21: Business Summary: Q2 and H1 FY25
Business Summary: Q2 and H1 FY25 All figures are in ₹ Cr All % are YoY STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES QUARTERLY HALF YEARLY REVENUES COST TO INCOME 740 1,407 65% 54% 492 909 50% 55% 11% Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 OPERATING PAT RETURN ON EQUITY 258 479 3
Slide 22: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Client Assets: Q2 FY25 stood at ₹ 4,41,276 Cr, grew by 53% YoY o Nuvama Wealth client assets stood at ₹ 1,00,060 Cr, grew by 53% YoY. Q2 MPIS net flows up 127% YoY CLIENT ASSETS o Nuvama Private client assets stood at ₹ 2,05,764 Cr, grew by 35% YoY. ARR assets grew faster,
Slide 23: Key Highlights: Q2 FY25
Key Highlights: Q2 FY25 ▪ Total Cost: Q2 FY25 stood at ₹ 392 Cr, grew by 30% YoY and H1 FY25 at ₹ 766 Cr, grew by 29% YoY o Staff costs: ₹ 298 Cr in Q2, grew by 41% YoY and H1 FY25 at ₹ 578 Cr, grew by 37% YoY COST • Added 350 wealth RMs in last 12 months, aligned with our strategy to scale and deep
Slide 24: Consolidated Performance: Q2 FY25
Consolidated Performance: Q2 FY25 Particulars – All figures are in ₹ crores Q1 FY25 Q2 FY25 Q2 FY24 YoY H1 FY24 H1 FY25 YoY Total Revenue 1 668 740 492 50% 909 1,407 55% Wealth Management 320 347 281 24% 553 667 21% Asset Management 15 17 19 45% 2 32 32 34% 2 Capital Markets 331 376 190 98% 320 707
Slide 25: Capital Management Strategy
Capital Management Strategy: Focused on driving growth & creating long-term shareholder value CAPITAL MANAGEMENT PRINCIPLES IMPROVING SHAREHOLDER RETURNS DIVIDEND 1. Disciplined capital management Return on Equity (RoE) to maximize profitability and RoE 31.5% 2. Investments to drive organic 23.6% bu
Slide 26: Segmental Summary: Q2 FY25
Segmental Summary: Q2 FY25 Wealth Management Asset Management Capital Markets 26
Slide 27: Nuvama Wealth
Nuvama Wealth One of the leading wealth managers in Affluent and HNI client segments Well scaled Wide presence across India ₹ 1,00,060 Cr of client assets 1,200+ RMs and ~7,000 Active External Wealth Managers (EWM) ~1.2 million clients. ~20% serviced by RMs & External Wealth Managers Covering 450+ l
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: Leveraging technology as a key enabler
Nuvama Wealth: Leveraging technology as a key enabler Single platform for all stakeholders (Client, RM, EWMs) One catering to all wealth management needs Platform Powered by AI, ML and data analytics to drive efficiency and enhance customer experience Onboarding CRM & Sales Portfolio Transactions &
Slide 30: Nuvama Wealth: Journey over years
Nuvama Wealth: Journey over years All figures are in ₹ Cr CLIENT ASSETS REVENUES 3Y CAGR 53% 3Y CAGR 33% 1,00,060 35% 574 669 24% 77,930 65,406 409 392 50,889 52,575 317 275 33,018 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OPERATING PBT COST TO INCOME 3Y CAGR 231 106% 1
Slide 31: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) By Solutions By Channel +24% MPIS NII Relationship Manager 392 Brokerage Others External Wealth Manager +17% 134 317 41% 48% 115 +25% 73% 71% +20% 203 27% 71 163 26% 59 17% 21% 27% 29%
Slide 32: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (₹ Cr) MPIS Net New Money (₹ Cr and YoY) +53% MPIS Loan Broking Others +35% 1,00,060 3,494 19,786 27,481 +39% 2,579 2,868 65,406 3,307 41,358 68,577 955 1,135 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1
Slide 33: Nuvama Private
Nuvama Private Amongst top 2 independent private wealth players Well scaled High-quality team ₹ 2,05,764 Cr of client assets 127 relationship managers 4,050+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Score of 65 Family Office | C
Slide 34: Nuvama Private: Value Proposition
Nuvama Private : Value Proposition Preserve and sustainably grow clients’ wealth through bespoke solutions across suite of offerings (A) (B) (C) (D) CLIENT PROFILE Bespoke Solution Investment Advisory Managed Accounts Wealth Structuring Suite Investment Policy Institutionalized Portfolio Holding Str
Slide 35: Nuvama Private: Journey over years
Nuvama Private : Journey over years All figures are in ₹ Cr CLIENT ASSETS REVENUES 3Y CAGR 3Y CAGR 35% 20% 2,05,764 35% 442 519 1,69,904 1,51,871 16% 341 1,19,540 1,29,391 275 98,570 210 236 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 OPERATING PBT COST TO INCOME 3Y CAGR
Slide 36: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr And YoY) From ARR Earning Assets +16% From Transactional Assets +16% 275 88 236 76 59% 60% +25% +22% 48 144 38 118 41% 40% Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 Q2 FY24 Q2 FY25 H1 FY2
Slide 37: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (₹ Cr) 1 Net New Money (₹ Cr and YoY) 1 ARR Earning Assets +50% +35% Transactional Assets 7,110 2,05,764 40,705 +36% 29,938 4,726 1,51,871 97,752 1,40,841 H1 FY24 H1 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY2
Slide 38: Nuvama Asset Management
Nuvama Asset Management Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of ₹ 10,288 Cr Private Markets + Public Markets + Commercial Real Estate 79% of this being fee paying High-Quality Investment Team Strong Distribution 20+ investment pr
Slide 39: 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 40: Nuvama Asset Management: Journey over years
Nuvama Asset Management: Journey over years ASSETS UNDER MANAGEMENT REVENUES EX-CARRY 2Y CAGR 67% 2Y CAGR 34% 10,288 59% 49 34% 6,967 37 6,175 32 5,581 24 3,856 20 FY22 FY23 FY24 H1 FY24 H1 FY25 FY22 FY23 FY24 H1 FY24 H1 FY25 FEE PAYING AUM NO OF STRATEGIES 2Y CAGR 77% 3 35% 8,113 7 8 5,495 5 4,579
Slide 41: 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) +67% +77% +34% 10,288 8,113 32 +45% 24 6,175 4,579 17 11 Yield on H1 FY24 H1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25 average fee-paying 0.99%
Slide 42: Nuvama Capital Markets: Journey over years
Nuvama Capital Markets: Journey over years CLIENT ASSETS – ASSET SERVICES REVENUES – ASSET SERVICES 3Y CAGR 90% 3Y CAGR 130% 50% 25% 1,25,164 329 284 91,156 65,828 167 171 158 43,532 124 38,708 27,056 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 FY21 FY22 FY23 FY24 H1 FY24 H1 FY25 REVENUES – IE & IB 3Y CAGR
Slide 43: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (₹ Cr and YoY) Revenue Composition (%) Profit Before Tax (₹ Cr and YoY) Asset Services 247% +120% Institutional Equities and Investment Banking 423 707 +98% 39% 40% 158% 376 231 320 190 122 61% 60% 90 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 H1 FY24 H1 FY25
Slide 44: We are doing it right! Awards and recognitions
WE ARE DOING IT RIGHT! Building Wealth, Garnering Accolades o Outstanding Wealth Management Technology Initiative – Back Office by Private Banker International Global Wealth Awards, 2024 o Highly Commended Achievement- Outstanding Private Bank for UHNW Clients by Private Banker International Global
Slide 45: Contents Summary: Strategy
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 45
Slide 46: 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 ~USD 55 billion Management team with visionary leadership having experienced multiple business cycles Integrated and differentiated platform Comprehensive
Slide 47: 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 47
Slide 48: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sept’23 In 5 years grow Building entire Leverage tech to Continue journey Expand to NRI client ecosystem with optimize cost-to- from product to segment and clients and client People at center. serve, improve portfolio so
Slide 49: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sept’23 In 5 years grow Build full suite of Continue to scale public Expand AUM to 6-8x or Significantly alternatives market strategies Distribution 52% CAGR Scale Asset Management Sept’24 On-going On-going Nuvama Privat
Slide 50: Well defined trajectory for each segment
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Sep’23 In 5 years grow Asset Services clients assets to International Institutional Domestic Institutional Enterprise (Technology 2-2.5x or 20% Grow assets Client Group Client Group (AIF, PMS) and Operations) CAGR under
Slide 51: ESG initiatives: Updates until Q2 FY25
We continue to make progress through ESG initiatives: Updates until Q2 FY25 Environment Social Governance o US GBC Gold certified head office for o ISO 27001 for information security o Published first BRSR report for FY24 interior designing management system o Aligning our approach towards ESG and o
Slide 52: Annexures
Annexures a~ nuvama
Slide 53: Annexure 1: Our Board
Annexure 1: Our Board Experienced and Independent composition with good mix of business and functional skills Birendra Kumar Ashish Kehair Shiv Sehgal Nikhil Srivastava Anthony Miller Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive Nominee Direc
Slide 54: 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, associate companies and joint
Slide 55: 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 — Q2 FY2025 Earnings Presentation on 6ix