Nuvama Wealth Management Limited
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Key numbers — 40 extracted
76%
₹731
₹4.5
36%
₹723
30%
₹2,130
45%
₹252
43%
18%
77%
Guidance — 20 items
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“+91 22 6620 3030 NUVAMA Investor Presentation Q3 FY25 Annexure- 2 1 Contents 1 2 3 4 About Us Industry Landscape Performance Overview Strategy 2 Contents Summary 1.”
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“INDUSTRY LANDSCAPE ▪ India's financial services sector has secular tailwinds o Financial wealth would continue to grow rapidly o Investment asset class will grow even faster o Rising formal penetration will multiply the opportunity 3.”
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“STRATEGY 13 In India WEALTH management is at a nascent stage and presents a HUGE OPPORTUNITY 1 2 3 GDP Growth Forecast Globally India Total Wealth to GDP Ratio (~) Share of Financial Wealth % (~) Matured Markets India Matured Markets India ~3% 6-7% 6.5x 4.5x 70% 25% 4 5 Professionally Managed Financial Wealth (~) Matured Markets India 75% 15% India Market Capitalization (In trillion) Financial Services Wealth Management ₹ 79 500+ companies ₹ 1.1 < 5 companies 1.”
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“Data point 1 is forecast for year 2024-2025, data point 2, 3 and 4 are for year 2020/21/22 and data point 5 is as on 14th January 2025.”
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“PERFORMANCE OVERVIEW ▪ Revenues: Q3 FY25 stood at ₹ 723 Cr, grew by 30% YoY and 9M FY25 at ₹ 2,130 Cr, grew by 45% YoY ▪ Operating PAT: Q3 FY25 stood at ₹ 252 Cr, grew by 43% YoY and 9M FY25 at ₹ 731 Cr, grew by 76% YoY ▪ Strong YoY performance across business segments for Q3: o Wealth and Asset Management: Continue to grow and demonstrate resilience; revenues grew by 18% YoY o Asset Services: Continue to grow clients and client assets, revenues grew by 77% YoY 4.”
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“MPIS: Managed Products & Investment Solutions 30 Nuvama Wealth: Performance Metrics Closing Client Assets (₹ Cr and YoY) Client Assets Composition (₹ Cr) MPIS Net New Money (₹ Cr and YoY) +38% 1,01,821 73,855 MPIS Loan Broking Others 21,318 2,898 28,643 +34% 2,969 3,495 +46% 5,101 48,558 69,361 1,082 9M FY24 848 9M FY25 9M FY24 9M FY25 9M FY24 1.03% 9M FY25 0.86% Yield on average assets 1.”
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“Client assets stood at ₹ 1,01,821 Cr as at end of Q3 FY25, grew by 38% YoY led by MPIS and MTM gains on other assets 2.”
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“MPIS client assets, stood at ₹ 28,643 Cr as at end of Q3 FY25, grew at 34% YoY, NNM contributed 90% 3.”
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“9M FY25 NNM from MPIS ( 87% of the total net flows ) remains strong at ₹ 5,101 Cr, grew by 46% YoY, led by sustained healthy flows in annuity products which grew by 126% YoY 1.”
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“Client assets stood at ₹ 2,08,638 Cr as at end of Q3 FY25, grew by 24% YoY, led by healthy flows in ARR assets and MTM 2.”
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Risks & concerns — 5 flagged
that are good strategic fit (B) Investment Advisory Investment Policy Statement (IPS) based portfolio creation, management & risk control (C) Managed Accounts Institutionalized Portfolio Management Approach through managed accounts (D) Wealth Structuring Holding Structure/ Ring Fencing/ Citizenship Planning/ Succession Planning (E) Research Capabilities Robust fundamental research across sectors.
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9M revenues grew by 15% YoY after absorbing impact of the change in AIF revenue recognition 2.
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ARR yield adjusted for the impact of change in AIF revenue recognition.
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Slide 7: Slide 8: Slide 9: Slide 11: Pursuant to approvals received from SEBI and exchanges, Nuvama Wealth Management Limited was listed on BSE and NSE on 26th September 2023 Company research and estimates Kotak Wealth Report, Karvy Wealth Report, Mckinsey Wealth Reports, Credit Suisse Global Wealth Reports | 2017-2022 and company estimates Revenue incorporates impact of phase 3 demerger to include merchant banking & advisory services businesses.
— NOTES
Investment assets includes Insurance, Direct Equity, MF, Unlisted Equity, Alternative Investments & International Assets Slide 26 & 32 Source company internal data sources, company research, Asian Private Banker and Care Report Slide 17-55: Revenue and Operating PAT incorporates impact of phase 3 demerger to include merchant banking and advisory services businesses.
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Opening remarks
Investor Relations Advisors
Strategic Growth Advisors Private Limited Name: Mr. Rahul Agarwal / Mr. Aakash Mehta Contact: +91 98214 38864 / +91 98706 79263
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rahul.agarwal@sgapl.net aakash.s.m@sgapl.net Nuvama Wealth Management Limited Corporate Identity Number: L67110MH1993PLC344634 Registered Office: 801- 804, Wing A, Building No. 3, Inspire BKC, G Block, Bandra Kurla Complex, Bandra East, Mumbai 400051 • Tel No. +91 22 6620 3030 NUVAMA Investor Presentation Q3 FY25 Annexure- 2 1 Contents 1 2 3 4 About Us Industry Landscape Performance Overview Strategy 2 Contents Summary 1. ABOUT US 2. INDUSTRY LANDSCAPE 3. PERFORMANCE OVERVIEW 4. STRATEGY ▪ Strong institutional ownership: PAG (promoter of company), one of the largest Asia-based alternative investment managers ▪ Integrated wealth management platform with exhaustive suite of offerings ▪ Only established player with proven execution across Affluent, HNI and UHNI client segments ▪ High growth company with diversified and superior quality of earnings 3 ABOUT Nuvama Wide Presence 3,400+ employees across 100+ offices Strong Governance Experienced board and management team Client-first foundati
Improved market share
~20% of relevant new clients in our select segments c) Won accolades: Recognized by global industry bodies as ‘The leading custodian’ and won many other awards WM: Wealth Management, AM: Asset Management, AS: Asset Services and CM: Capital Markets 42
Nuvama Asset Services and Capital Markets
Journey over years CLIENT ASSETS - ASSET SERVICES REVENUES - ASSET SERVICES 57% 1,30,320 91,156 82,965 3Y CAGR 50% 38,708 43,532 27,056 3Y CAGR 25% 167 171 158 329 221 107% 457 FY21 FY22 FY23 FY24 9M FY24 9M FY25 FY21 FY22 FY23 FY24 9M FY24 9M FY25 REVENUES - CAPITAL MARKETS (IE & IB) 3Y CAGR 12% 389 336 476 331 336 77% 596 FY21 FY22 FY23 FY24 9M FY24 9M FY25 43
Nuvama Asset Services and Capital Markets
Performance Metrics Revenue - Asset Services (₹ Cr and YoY) Revenue - Capital Markets (₹ Cr and YoY) Profit Before Tax (₹ Cr and YoY) +107% 457 +77% 173 221 98 +25% 174 139 +77% 596 336 162% 639 77% 215 121 243 Q3 FY24 Q3 FY25 9M FY24 9M FY25 Q3 FY24 Q3 FY25 9M FY24 9M FY25 Q3 FY24 Q3 FY25 9M FY24 9M FY25 1. Asset Services revenues grew by 77% YoY, led by continued momentum in onboarding new and scaling existing clients 2. Capital Markets revenues grew by 25% YoY a) Sustained IE market share and closed multiple marquee deals in IB across equity and debt products b) Nuvama Investment Banking Improved market share1 across equity and debt offerings. Equity IPO market share doubled from 9.1% (CY23) to 18.4% (CY24) and secured #1 rank in public debt issues 1. Source Prime database and ranking by deal values 44 WE ARE DOING IT RIGHT Building Wealth, Garnering Accolades Recognized by reputed industry bodies across business segments
Select awards this fiscal
o Best Performer in Equities Derivatives – Institution - Bombay Stock Exchange (BSE) India, 2024 o The Best Digital Onboarding Application Of The Year – Dine with Alphasec, 2024 o Best – BSFI by BW – Merit Awards, 2024 o Outstanding Private Bank for UHNW Clients by Private Banker International Global Wealth Awards, 2024 o Outstanding Wealth Management Technology Initiative – Back Office by Private Banker International Global Wealth Awards, 2024 o Best Private Bank – India Award by The Asset Triple A Private Capital Awards, 2024 45 Contents Summary 1. ABOUT US ▪ Necessary fundamentals in place ▪ Adequately capitalized to achieve future goals ▪ Well defined trajectory for each segment 2. INDUSTRY LANDSCAPE 3. PERFORMANCE OVERVIEW 4. STRATEGY 46 Our STRATEGIC ADVANTAGE Strong promoters with experienced management team PAG, promoter of the company, is a leading investment firm, with AUM of ~USD 58 billion Management team with visionary leadership having experienced multiple business cycles
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