Nuvama Wealth Management Limited · NSE:NUVAMA
Nuvama Wealth Management — Q4 FY24 Earnings Presentation
57 slides from Nuvama Wealth Management's earnings presentation, Jun 21, 2024
Slide 1: Stock exchange filing cover letter
NWML/SEC/2025/34 June 21, 2024 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai - 400 05
Slide 2: Nuvama Investor Presentation Q4 FY24 and FY24
NUVAMA Investor Presentation Q4 FY24 and FY24 1
Slide 3: Contents
Contents 1 2 3 4 5 About Us Industry Journey Performance Strategy Landscape Over Years Overview 2
Slide 4: 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 2. INDUSTRY LANDSCAPE ▪ Integrated wealth management platform with exhaustive suite of offerings 3. JOURNEY OVER ▪ Only established player with prov
Slide 5: About Nuvama
ABOUT Nuvama Serving Client-first UHNI & Family Offices foundation HNI & Affluent Individuals Corporates & Institutions Well Scaled Wide Presence Client Assets of ~ US $ 41.5 Bn 3,100+ employees across 90+ offices ~1,200 RMs Strong Governance Unique Proposition Experienced board and Multi Client Seg
Slide 6: 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 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+ 9 7
Slide 7: 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 8: 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 9: 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 10: 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 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 US $ Mn +31% 247 +19% 189 +32% 142 Wealth & Asset 159 122 Management leading the 120 90 growth 58 57 47 40 40 39 20 21 19 8 8 - 2 FY21 FY22 FY23 FY24 1 Wealth Management Asset Management Asset Services
Slide 12: Unique business model, One Nuvama
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 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 2. INDUSTRY LANDSCAPE o Investment asset class will grow even faster o Rising formal penetration will multiply the opportunity 3. JOURNEY OVER YEARS ▪ Making India
Slide 14: Wealth management in India is at a nascent stage
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 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 21% 16% 116% AIF 68% 1% 13% Insurance 14% 3% 11% India to become the 4th largest private wealth market globally by 2028 14
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: Journey over years
Contents Summary ▪ Delivering the comprehensive, diversified and scaled 1. ABOUT US wealth management platform. Performance highlights over last 4 years, FY21 to FY24 2. INDUSTRY LANDSCAPE o Client Assets: 30% CAGR powered by ‘Client-First’ philosophy and supported by strong markets 3. JOURNEY OVER
Slide 18: Client Assets: 30% CAGR powered by Client-First philosophy
Client Assets: 30% CAGR powered by ‘Client-First’ philosophy and supported by strong markets Wealth Management All figures are in US $ Mn o Scaled capacity and expanded footprint 30% CAGR RM Count - FY21: 750+ | FY24: 1200+ 41,495 o Onboarded new & deepened existing relationships Private Families: F
Slide 19: Client Assets: By Business Segments
Client Assets: By Business Segments All figures are in US $ Mn NUVAMA WEALTH NUVAMA PRIVATE 9,347 20,379 6,104 6,306 15,519 CAGR 14,338 CAGR 11,823 33 % 20 % 3,960 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT ASSET SERVICES 836 10,933 669 462 CAGR CAGR 5,221 34 % 3,245 4,643 50 % - FY21
Slide 20: Revenue: 27% CAGR led by integrated wealth management platform
Revenue: 27% CAGR led by Integrated wealth management platform driving sustainable growth Wealth Management All figures are in US $ Mn o Scaled presence across UHNI and HNI & Affluent 27% CAGR client segments, mirroring India wealth growth story 250 247 Only scaled player in both segments, vintage o
Slide 21: Revenue: By Business Segments
Revenue: By Business Segments All figures are in US $ Mn NUVAMA WEALTH NUVAMA PRIVATE 80 62 69 53 49 CAGR 41 CAGR 33 35 % 25 35 % FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT CAPITAL MARKETS CAGR 6 97 ASSET SERVICES 4 CAGR 60 67 59 25 % 2 59 % IE & IB 0 FY21 FY22 FY23 FY24 FY21 FY22 FY23
Slide 22: Profitability: 44% CAGR led by strategic investments and expense discipline
Profitability: 44% CAGR led by strategic investments & expense discipline, enabling operating leverage PROFIT AFTER TAX All figures are in US $ Mn o Investments in areas of growth 44% CAGR Wealth Management, Asset Management 72 o Continued focus on operating efficiency Reduced Cost to Income - FY21:
Slide 23: Profit Before Tax: By Business Segments
Profit Before Tax: By Business Segments All figures are in US $ Mn NUVAMA WEALTH NUVAMA PRIVATE 28 22 21 19 CAGR 14 CAGR 10 106 % 4 79 % 3 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ASSET MANAGEMENT CAPITAL MARKETS CAGR 45 ASSET SERVICES FY21 0 FY22 FY23 FY24 25 25 16 33 % -2 -2 -2 IE & IB FY21 FY22 FY
Slide 24: We are doing it right: awards
WE ARE DOING IT RIGHT Building Wealth, Garnering Accolades o Consistently named Best Wealth Manager by Asian Private Banker for three years o Securing Best Private Bank award from Global Finance Magazine, 2018-2021 o Acknowledged as the Leading India Custodian at the Global Custodian ABEM Survey, 20
Slide 25: Contents Summary: Performance Overview
Contents Summary ▪ Revenues: Q4 FY24 stood at US $ 71 Mn, grew by 35% YoY 1. ABOUT US and FY24 at US $ 247 Mn, grew by 31% YoY 2. INDUSTRY ▪ Operating PAT: Q4 FY24 stood at US $ 22 Mn, grew by 57% LANDSCAPE YoY and FY24 at US $ 72 Mn, grew by 62% YoY ▪ Sustained robust growth in Wealth and Asset Man
Slide 26: Consolidated Performance Q4 FY24 and FY24
Consolidated Performance Q4 FY24 and FY24 25
Slide 27: Business Summary: Q4 FY24 and FY24
Business Summary: Q4 FY24 and FY24 MOST COMPREHENSIVE WIDE AND GROWING WELL SCALED SERVING PRODUCT SUITE SALES COVERAGE PLATFORM Wealth Management Investment Solutions 3,600+ ~1,200 US $ 29,726 Mn Managed Products Ultra High Networth Families Wealth RMs Client Assets Advisory Wealth Management Excha
Slide 28: Business Summary: Strong financial performance
Business Summary: Q4 FY24 and FY24 STRONG FINANCIAL PERFORMANCE DELIVERING QUALITY OUTCOMES Q4 FY24 FY24 FY24 71 35 % 247 31 % 62% 695 bps Revenue (US $ Mn and YoY) Revenue (US $ Mn and YoY) Cost to Income (% and YoY) 22 57 % 72 62 % 23.6% 580 bps Operating PAT (US $ Mn and YoY) Operating PAT (US $
Slide 29: Key Highlights: Q4 FY24 and FY24
Key Highlights: Q4 FY24 and FY24 ▪ Total Revenues: Q4 FY24 stood at US $ 71 Mn, grew by 35% YoY and FY24 at US $ 247 Mn, grew by 31% YoY o Wealth Management: US $ 40 Mn in Q4, grew by 16% YoY and US $ 142 Mn in FY24, grew by 17% YoY REVENUE o Asset Management1: US $ 2 Mn in Q4, grew by 27% YoY and U
Slide 30: Consolidated Performance: Q4 FY24 and FY24
Consolidated Performance: Q4 FY24 and FY24 Particulars – All figures are in US $ Mn Q3 FY24 Q4 FY24 Q4 FY23 YoY FY23 FY24 YoY Total Revenue 1 67 71 53 35% 189 247 31% Wealth Management 37 40 34 16% 122 142 17% Asset Management 2 2 1 27% 2 8 8 34% 2 Capital Markets 28 30 17 71% 59 97 64% Total Costs
Slide 31: Segmental Summary: Q4 FY24 and FY24
Segmental Summary: Q4 FY24 and FY24 Wealth Management Asset Management Capital Markets 30
Slide 32: 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 US $ 9,347 Mn of client assets ~1,100 RMs and ~7,000 Active External Wealth Managers (EWM) 1.2+ million clients. ~20% serviced by RMs & External Wealth M
Slide 33: 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 34: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn and YoY) By Solutions By Channel MPIS NII Relationship Manager +30% +16% Brokerage Others External Wealth Manager 28 80 69 48% 21 52% 75% 73% +6% -16% 22% 24% 8 21 22 7 17% 18% 25% 27% 8%
Slide 35: Nuvama Wealth: Performance Metrics
Nuvama Wealth: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition - Solution (%) Net New Money (US $ Mn and YoY) MPIS Loan Broking Others +48% 9,347 US $ US $ +7% 31% 30% 1,980 Mn 2,761 Mn 5% 4% 693 6,306 647 63% 65% 1% 1% FY23 FY24 FY23 FY24 FY23 FY24 1.09% 1.00%
Slide 36: Nuvama Private: Introduction
Nuvama Private : Introduction Amongst top 2 independent private wealth players Well scaled platform High-quality team US $ 20,379 Mn of client assets 120+ relationship managers 3,600+ families Comprehensive Solutions High customer satisfaction Investments | Lending | Estate Planning Net Promoter Sco
Slide 37: 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 38: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn And YoY) From ARR Earning Assets +18% From Transactional Assets 16% 62 22 53 19 55% 57% +32% 90% 18 7 13 45% 43% 3 Q4 FY23 Q4 FY24 FY23 FY24 FY23 FY24 Q4 FY23 Q4 FY24 FY23 FY24 1. FY24 re
Slide 39: Nuvama Private: Performance Metrics
Nuvama Private: Performance Metrics Closing Client Assets (US $ Mn and YoY) Client Assets Composition (%) 1 Net New Money (US $ Mn and YoY) 1 ARR Earning Assets +31% Transactional Assets +9% 20,379 24% US $ 23% US $ 1,362 1,246 3,059 Mn 4,009 Mn 15,519 76% 77% FY23 FY24 FY23 FY24 FY23 FY24 1.05% 1.0
Slide 40: Nuvama Asset Management: Introduction
Nuvama Asset Management: Introduction Focused and high-performing alternatives asset management business Scaling with Speed Active Strategies AUM of US $ 836 Mn Private Markets + Public Markets + Commercial Real Estate 79% of this being fee paying High-Quality Investment Team Strong Distribution 20+
Slide 41: 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 42: Nuvama Asset Management: Performance Metrics
Nuvama Asset Management: Performance Metrics Fee Paying Client Assets Revenue ex-carry (US $ Mn and YoY) Client Assets (US $ Mn and YoY) (US $ Mn and YoY) +25% +40% +34% 836 659 6 669 469 4 +27% 1 1 Q4 FY23 Q4 FY24 FY23 FY24 Yield on FY23 FY24 FY23 FY24 average fee-paying 1.01% 0.97% assets 1. AUM c
Slide 43: Nuvama Capital Markets: Performance Metrics
Nuvama Capital Markets: Performance Metrics Revenue (US $ Mn and YoY) Revenue Composition (%) Profit Before Tax (US $ Mn and YoY) Asset Services 180% +64% Institutional Equities and Investment Banking 45 97 32% 41% 59 123% +71% 16 16 30 68% 17 59% 7 Q4 FY23 Q4 FY24 FY23 FY24 FY23 FY24 Q4 FY23 Q4 FY2
Slide 44: Contents Summary: Strategy
Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place 2. INDUSTRY ▪ Adequately capitalized to achieve future goals LANDSCAPE 3. JOURNEY OVER ▪ Well defined trajectory for each segment YEARS 4. PERFORMANCE OVERVIEW 5. STRATEGY 43
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 55 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 45
Slide 47: Well defined trajectory: Wealth Management
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Building entire Leverage tech to Continue journey Expand to NRI client ecosystem with optimize cost-to- from product to segment and People at center. serve, improve portfolio solutions deepen existing Double RM capacity
Slide 48: Well defined trajectory: Asset Management
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Build full suite of Continue to scale public Expand alternatives market strategies Distribution Significantly In 5 years grow Scale Asset AUM to 6-8x Management On-going On-going Nuvama Private Equity Long Only Private V
Slide 49: Well defined trajectory: Asset Services
Well DEFINED TRAJECTORY for each segment EXECUTION STRATEGY FOCUS AREAS MARKERS Asset Services International Institutional Domestic Institutional Enterprise (Technology Client Group Client Group (AIF, PMS) and Operations) In 5 years grow Grow assets clients assets to under Grow clients and expand Gr
Slide 50: Environmental Social Governance
Environmental Social Governance “Let's do it right: For people, planet, and profit”
Slide 51: Key progress through ESG initiatives
We made key progress last fiscal through ESG initiatives, our plan is to build further on these efforts Environment Social Governance o IGBC Gold certified – Head Office o ISO 27001 for information security o Published first ESG report for FY23 management system o Minimizing scope 2 emissions by pro
Slide 52: Our commitment to CSR stands strong
Our commitment to CSR stands strong. We are getting organized to make meaningful difference Education Women Empowerment Promoting Education, Supporting higher education for children Reducing from marginalized communities Inequalities Community Improving school environment Prevention and Resilience a
Slide 53: Annexures
INalalsy.Ulisys “~ nuvama
Slide 54: Annexure 1: Bridge to financial statements
Annexure 1: Bridge to financial statements Q3 FY24 Q4 FY24 # Particulars – US $ Mn As per As per Netting Netting Financial Adjusted Financial Adjusted (1) (1) Statements Statements A Revenue 101 -34 67 111 -40 71 B Expense 73 -34 39 83 -40 43 C PBT 28 28 29 29 D Share of Profit in Associate 0 0 0 0
Slide 55: 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 Chairperson & Independent Managing Director and Executive Director Non-Executive Nominee Non-Executive
Slide 56: 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 57: 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 — Q4 FY24 Earnings Presentation on 6ix