ANANDRATHI

ANANDRATHI Private Wealth. uncomplicated Ref No: 06/2022-23 Dated: April 13, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Dalal Street, Mumbai — 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 543415 Trading Symbol: ANANDRATHI Scrip ID: ANANDRATHI Subject: Submission of Investor Presentation Dear Sir/Madam, With reference to our letter no. 05/2022-23 dated 12‘ April, 2022 regarding Submission of Investor Presentation, please find attached herewith updated Investor Presentation. We request you to kindly take the above on record. Thanking You, Yours faithfully, For Anand Rathi Wealth Limited Qe (Ashish Chauhan) Company Secretary and Compliance Officer Enclosed: As above ANAND RATHI WEALTH LIMITED. Registered Office : E xpress Zone, A Wing, 10th Floor, Western Express Highway, Goregaon (East), Mumbai - 400 063, (Formerly known as ‘Anand Rathi Wealth Services Limited’) Maharashtra Tel No.+91 22 62817000. www.rathi.com AMFI-ChRie gWias.t eGraerdi gMeuntaunaol ueFruLncdo sDainsntrei butor Corporate Office : 11th Floor, Times Tower, Kamala City, Senapati Bapat Marg, Lower Parel - 400 013, Maharashtra. Tel No.+91 22 40477000. Investor Presentation Quarter & Year Ended 31st March 2022 Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Anand Rathi Wealth Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailedinformation about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omissionfrom, this Presentationis expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsiblefor such third party statements and projections. 2 Excellent Performance of all Businesses Revenue (Rs. Crs.) PAT (Rs. Crs.) AUM (Rs. Crs.) Particulars Business FY22 FY21 Growth FY22 FY21 Growth FY22 FY21 Growth Anand Rathi Wealth Ltd. Private Wealth 408.95 262.25 56% 125.45 44.22 184% 32,054 26,058 23% (Holding Company) AR Digital Wealth Pvt. Ltd. Digital Wealth 11.23 10.83 4% 0.25 0.05 432% 852 612 39% (Subsidiary) Ffreedom Intermediary Infrastructure Pvt. Ltd. OFA 5.41 5.40 0% 0.87 0.30 188% NA NA - (Subsidiary) TOTAL 425.59 278.48 53% 126.56 44.56 184% 32,906 26,670 23% 3 Key Highlights for Financial Year 2021-22 – Private Wealth Business AUM (Rs. Crs.) Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) +23% 32,054 +71% 148 +56% 409 125 +184% 26,058 262 86 44 Mar-21 Mar-22 FY21 FY22 FY21 FY22 FY21 FY22 Return on Equity Active Client Families (Nos.) Relationship Managers (Nos.) Dividend (Rs. Per Share) 38.0% 7,082 271 11 6,109 233 17.5% 5 FY21 FY22 Mar-21 Mar-22 Mar-21 Mar-22 FY21 FY22* *Including Proposed All financial numbers are on Consolidated Basis 5 Key Highlights for Q4 FY22 (Jan to Mar 2022) – Private Wealth Business Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) 41 110 34 27 70 8 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 52% 57% 335% 6 One of the leading Private Wealth practices in India One of the leading non-bank wealth solutions firms in India & have been ranked amongst the top three non-bank mutual fund distributors in India by gross commission Started in 2002 as an AMFI registered mutual fund distribution (MFD) business –and have evolved into providing, well researchedsolutions to our Clients by facilitating investments in financial instruments through an objective driven process Presence across India Number of RM’s 271 Strengths 11 offices across all major Indian cities + Client-specific financial strategy A representative office in with a focus on Long term Process-driven Dubai Comprehensive returns, through MFs and Other framework for Wealth Solution securities consistent delivery of AuM per RM* Safety net & estate planning service Rs. 127 crores using trusts & wills Rs. Crs. +21%^ h +21%^ h 32,054 t 7,082 t w w o o r r G G Clients per RM* 14,986 t 3,293 M n e ~28 u i A l C FY 2018 FY 2022 FY 2018 FY 2022 Note: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy *Based on the Average number of RMs’ ^ Growth is on CAGR basis 7 Focused on More Rewarding HNI Segment Share in Current AuM* (%) These were mostly HNIs when they were 17.2% on-boarded and have subsequently elevated as UHNIs over a period of time 50.1% Slower and difficult to build, but far more sustainable with long term profitability 32.7% *As on 31stMarch 2022 8 Offer end-to-end, process driven, standardized & well researched solution Standardized Solution Client goals Discussion with clients on investment Consistent client outcomes principles, risk and portfolio strategy Provide comparative investment options Ability to build and train RM pool internally Create client conviction to act Execution and reporting Scalable Ongoing monitoring and portfolio rebalancing • Well researched Mutual Fund selection process • Diversified Sources of MLDs 9 Private Wealth Performance Metrics Product Wise AUM Mix (Rs. Crs.) Net Flows (Rs. Crs.) Trail Income coverage as % of Fixed Cost* 26,058 32,054 2,754 36% 46% 17% 80% 12% 1,110 50% 36% 30% 10% 12% FY21 FY22 FY21 FY22 FY21 FY22 Equity MF Debt MF Other Securities Others *including all operating costs excluding incentive payout 10 Advantage of Client Vintage and Stickiness Client Vintage (Nos.) Client Vintage (AUM) 6,109 7,082 52% 57% 72% 77% 48% 43% 28% 23% FY21 FY22 FY21 FY22 > 3 Year 0 to 3 Year > 3 Year 0 to 3 Year Net Client Addition (Nos.) Client Attrition (% of AUM lost) 988 973 2.55% 1.49% Mar-21 Mar-22 FY21 FY22 57.1% of our clients have been associated with us for over 3 years, representing 76.6% of our total PW AuM, which shows our strength in vintage of both clients and their AuM in our business as on 31st March 2022 11 Increasing Share of Higher Vintage Relationship Managers (RMs) Vintage Wise Relationship Managers (Nos.) RMs’ Trail Revenue 40%+ (Nos.) Regret RM Attrition* 271 132 3.50% 233 99 82 81 1.98% 68 70 104 81 FY21 FY22 FY21 FY22 FY21 FY22 *RM with 5 Year+ Vintage > 5 Year 3 to 5 Year <3 Year 12 Outperforming the Growth Guidance Guidance given for FY22 Actuals for FY22 Guidance - FY23 Particulars (Rs. Crs.) (Rs. Crs.) (Rs. Crs.) Asset under Management (AuM) 31,900 32,054 39,000 Revenue 400 409 495 Profit After Tax (PAT) 122 125 155 13 India’s Wealth Story to unlock in coming years Anand Rathi Wealth : Well poised to grow exponentially Industry Growth Drivers Increasing Penetration of Mutual Fund Market in India Increase in HNI population in India Assets managed by the Indian  In the past three decades, per capita incomes have multiplied Penetration of MF Industry mutual fund industry (India V/S Others Economies) (Rs. Trillion)  Strong underlying economic expansion along with significant growth per capita income will drive the pace of wealth creation in India where investment towards financial savings is gradually +20% increasing with increase in GDP 39 140% 32 Growth of HNIs in India 84% 63% 16% 352 3,30,400 Mar-21 Mar-22 India United Brazil Global States Average 1,46,600 135 62,000 45  Further, India accounts for less than 2% of the global mutual fund industry, representing a significant growth opportunity. 2010-11 2015-16 2021-22E 2010-11 2015-16 2021-22E  The wealth management market (assets under advisory) in India: Assets (Rs. Trillion) Number of UHNIs • About ₹ 21.77 trillion in July 2021, which is only approx. 9% of the HNIs in India are inclining towards ‘objective-driven approach’ to country’s GDP v/s 60% to 75% of GDP in established markets which signifiesimmensegrowthopportunitiesforthesector investing to generate higher returns with reduced risk Source: CART Industry Report 15 Huge Market Potential Strong macro-economic trends and a growing HNI families expected to drive growth in the Indian wealth solutions space Individual’s 2025E INR 97.3 Trillion INR 414.8 Trillion Financial Assets (INR trillion) 512.2 Financial assets as Mutual fund assets to 21.93% 12.84% Other % of total assets to CAGR CAGR grow 2.3x from FY20 Equity linked financial grow from 57% in to FY25 262.9 assets assets FY20 to 63% in FY25 INR 36.1 Trillion INR 226.8 Trillion 2020 FY20 FY25 1,269 ~3,00,000 698 97,689 Taxpayers > INR 10 US$ millionaires to 36,690 million Income to grow increase 1.8x by 3x from FY18 to FY25 2025 2020 2025 FY12 FY18 FY25E # of US$ millionaires (‘000) People earning income > INR 10 million Source: CART Industry Report 16 1. Digital Wealth – Strategy, Philosophy & Opportunities Leveraging technology to cater to the mass affluent segment through a Phygital Model DW – A Holistic Solution Challenges faced by Customers  Poor Quality of advice and service due to inadequately Comprehensive packaged solution delivered through a fully skilled, low inexperienced & high attrition channel variable and scalable business model, leveraging technology  High cost of delivery of advice leads to mis-selling specially products having upfront payouts Algo driven real-time portfolio restructuring and rebalancing Access to private wealth quality of product research Anand Rathi Advantage Uncomplicated customer education, strategy & reporting  Leverage PWM Model  Use of Expertise in Product Selection 360o digital delivery model – client app, educational videos & webinars, customer support- delivered by partners  Established Brand 18 Digital Wealth : Scaling up with use of Technology Customer Segment : Mass Affluent having existing financial assets: Rs. 10 lakhs – Rs. 5 crores AuM (Rs. Crs.) Tot ( a R l s R . e C v r e s n .) ue PAT (Rs. Crs.) Cl P ie a n r t t n E e n r g s a ( g N e o m s. e ) nt Clients (Nos.) 852 10.8 11.2 0.25 294 316 3,907 3,111 612 0.05 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Core Revenue Model Unique Approach to Wealth Solutions • Commission on Mutual Fund (MF) and distribution Delivers service through a Seeks to build a scalable and of Other securities Attempts to build a partner ‘phygital channel’ i.e. a profitable model by using this led distribution through whom combination of human blend of technology a packaged investment • Partners on fully variable distributor (physical) capabilities and human solution is delivered model, hence no fixed cost empowered with technology interface (digital) for platform 19 Omni Financial Advisor (OFA) – New Age Business 2. OFA - Provides a technology platform to the IFAs & their clients Target Segment – ARN Holder (Certified Mutual Fund Distributors) with Rs. 5-50 crores of AUM Top 3 Pain Points of IFAs OFA - Our Solutions The Anand Rathi Advantage  Lack of Infrastructure & Tech with small IFAs  Mobile –led Tech Infrastructure  Network vs sub-broker  Poor Client Engagement – Sell & Move-on model  Client Reporting, Transaction & Engagement  Scale  Client Acquisition & Client Retention  Pre Sales – Sales – Post Sales enablers  Existing Brand & Expertise Anand Rathi OFA Unique Proposition Once IFA is onboarded, the Additional Product Help grow the Account Set Up is done Competitive pricing Capability & dedicated customers’ business within a week post sales service 21 OFA - Leveraging technology to cater the retail segment Key Functionalities : Subscription Model, IFA and his Clients get access to our platform. (IFA – Web + Mobile, IFA’s Clients – Mobile) OFA enables IFAs with unique features such as: OFA provides a co-branded mobile first integrated technology platform to IFAs and their clients thereby, addressing the wide retail segment Client reporting Business dashboard Client engagement AR Wealth domain expertise combined with significant tech capabilities has created a unique Online mutual fund Goal planning ability to scale up the network for retail investors transactions Independent Platform Assets Platform Clients Revenue Profit After Tax Financial Advisors Value (Rs. Crs.) (Nos. lakhs) (Rs. Crs.) (Rs. Crs.) (Nos.) 5,011 5,343 79,846 16 17 5.4 5.4 0.87 54,699 0.30 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 22 Board of Directors Mr. Anand Rathi Mr. Amit Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non Executive Director Non Executive Director Non Executive Director Executive Director & CEO Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independent Director Independent Director Independent Director 24 Key Leadership Personnel Mr. Rakesh Rawal Mr. Feroze Azeez Mr. Jugal Mantri Chief Executive Officer Deputy Chief Executive Officer Group Chief Financial Officer • MBA in Marketing and Finance from JBIMS, • Post Graduate Diploma in Management –majors in • Rank holder Chartered Accountant and SMP from IIM MechanicalEngineer–IITKanpur Derivative and Finance from SDM-IMD, Ahmedabad. Mechanical Engineer from VVIET • PastExperience–HUL&DeutscheBank • One of the first to join the Anand Rathi Group when it • PastExperience:ABNAMROBank,ReligareMacquarie wasfoundedin1994 • JoinedAnandRathiWealthin2007 • JoinedAnandRathiWealthin2012 25 Key Personnel – Business & Financial Heads Mr. ChethanShenoy Mr. Rajesh Bhutra Mr. Niranjan Babu Ramayanam Director & Head –Product & Research CFO Head –Operations Mr. BharathRathore Mr. Arjun Guha Mr. Manish Srivastava Executive Director & Unit Head, Executive Director & Unit Head, Mumbai Director & Unit Head, Delhi Bengaluru Ms. Aarti Desikan Mr. Amitabh Lara Mr. Adil Chacko Executive Director & Unit Head, Director & Unit Head, Mumbai Director & Unit Head, Delhi Bengaluru Mr. SwapanChakraborty Mr. RajanSarkar Mr. MukeshKumawat Director & Unit Head, Pune Director & Unit Head, Kolkata Director & Unit Head, Gurugram Mr. SubhenduHarichandan Mr. Ashish Bhandia Mr. Farooq Nabi Director & Unit Head, Pune Director & Unit Head, Kolkata Director & Unit Head, Noida Ms. ProtimaDhavan Mr. Raj VijetaSharma Mr. KrishanuChaudhary Director & Unit Head, Hyderabad Director & Unit Head, Dubai Director & Unit Head, Chennai Mr. Harpreet Punj Director & Unit Head, Chandigarh 26 Consolidated Business Summary Particulars (Rs. Crs.) Q4 FY22 Q3 FY22 Q-o-Q Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y MF –Equity& debt 19,434 18,899 2.8% 14,559 33.5% 19,434 14,559 33.5% Other Securities 9,591 9,488 1.1% 9,408 2.0% 9,591 9,408 2.0% Others 3,881 3,783 2.6% 2,703 43.6% 3,881 2,703 43.6% AUM 32,906 32,171 2.3% 26,670 23.4% 32,906 26,670 23.4% Particulars (Rs. Crs.) Q4 FY22 Q3 FY22 Q-o-Q Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y MF –Equity& Debt 42.8 42.5 28.2 154.0 90.2 Other Securities 68.5 62.1 40.9 258.8 170.6 IT Enabled Services 1.3 1.1 1.2 4.8 4.5 Others 2.2 3.0 6.6 8.1 13.9 Total Revenue 114.8 108.7 5.6% 76.8 49.4% 425.6 279.2 52.4% Employee costs 52.2 49.8 42.0 191.5 150.8 Other expenses 14.6 11.4 13.7 48.8 45.0 Total Costs 66.7 61.2 9.0% 55.7 19.8% 240.3 195.8 22.8% EBITDA 45.8 44.5 3.0% 14.5 215.9% 177.2 69.5 154.7% Margin% 40.7% 42.1% 20.6% 42.4% 26.2% PAT 34.6 32.0 8.0% 10.2 238.9% 126.8 44.6 184.1% All financial numbers are on Consolidated Basis 28 Historical Trends AUM (Rs. Crs.) Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) 32,906 426 127 30.49 224 15,264 46 11.07 Mar-18 Mar-22 FY18 FY22 FY18 FY22 FY18 FY22 21% 17% 29% 29% Growth is on CAGR basis All financial numbers are on Consolidated Basis 29 Historical Financials Particulars (Rs. Crs.) FY22 FY21 FY20 FY19 FY18 MF –Equity& debt 19,434 14,559 11,068 12,862 11,050 Other securities 9,591 9,408 5,797 3,966 2,640 Others 3,881 2,703 1,490 1,565 1,575 AUM 32,906 26,670 18,355 18,393 15,264 Particulars (Rs. Crs.) FY22 FY21 FY20 FY19 FY18 MF –Equity& Debt 154.0 90.2 99.6 104.0 88.9 Other securities 258.8 170.6 227.7 169.0 130.4 IT Enabled Services 4.8 4.5 4.6 3.6 1.7 Others 8.1 13.9 4.6 7.5 2.7 Total Revenue 425.7 279.2 336.4 284.1 223.7 Employee costs 191.5 150.8 167.2 132.8 104.2 Other expenses 48.8 45.0 57.7 56.8 38.3 Total Costs 240.3 195.8 224.9 189.6 142.5 EBITDA 177.3 69.5 106.9 87.0 78.5 Margin% 42.4% 26.2% 32.2% 31.4% 35.5% PAT 126.8 44.6 61.4 59.1 46.1 All financial numbers are on Consolidated Basis 30 Historical Balance Sheet Assets (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Non -Current Assets 279.0 245.6 258.5 118.4 Total Equity 355.4 253.2 185.5 123.9 Property Plant & Equipments 80.8 7.2 8.9 7.5 Share Capital 20.8 13.8 13.5 13.5 CWIP - 69.0 65.4 - Goodwill 2.9 2.9 2.9 2.9 Other Equity 322.9 227.8 172.0 110.4 Intangible assets 27.1 32.2 37.3 7.9 Non Controlling Interest 11.7 11.6 11.6 12.5 Right of use asset 13.2 12.9 25.1 31.3 Non-Current Liabilities 27.2 32.5 52.0 24.2 Intangible assets under - - - 31.7 development Financial Liabilities Financial Assets (i) Borrowings 16.6 25.0 33.4 0.4 Investments 103.5 101.8 101.3 - (ii) Lease Liabilities 8.5 6.3 16.5 22.7 Other Financial Assets 4.2 4.3 5.2 4.0 Deferred Tax Assets (Net) 3.8 4.2 5.1 4.6 Provisions 2.1 1.2 2.2 1.1 Other Non -Current Assets (Net) 43.5 11.1 7.2 28.6 Current Liabilities 97.6 54.0 159.9 70.2 Current Assets 201.2 94.2 150.6 112.4 Financial Liabilities Financial Assets - (i) Borrowings 8.3 8.4 8.4 0.2 (i)Investments 2.7 1.8 75.1 (ii) Trade Payables - 0.2 1.7 0.2 (ii)Trade receivables 14.9 10.9 9.1 11.0 (iii)Cash and cash equivalents 87.1 65.3 28.3 11.4 (iii) Lease 5.8 7.8 10.1 9.4 (iv)Bank balances other than C & - 0.0 0.0 0.0 (iii) Other Financial Liabilities 21.2 5.6 91.0 20.8 CE (v) Loans - - 64.9 0.2 Other Current Liabilities 8.7 12.2 9.1 6.6 Other Financial Assets 92.0 13.7 33.3 12.2 Provisions 53.6 19.8 39.7 33.1 Other Current Assets 7.2 1.5 13.2 2.4 Total Equity & Liabilities 480.2 339.8 409.1 230.8 Total Assets 480.2 339.8 409.1 230.8 All financial numbers are on Consolidated Basis 31 THANK YOU ! Company: Anand Rathi Wealth Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L67120MH1995PLC086696 CIN: U74140MH2010PTC204285 Mr. Rajesh Bhutra, CFO / Vishal Sanghavi – EVP Mr. Deven Dhruva / Mr. Abhishek Shah Finance deven.dhruva@sgapl.net / abhishek.shah@sga.net rajeshbhutra@rathi.com / vishalsanghavi@rathi.com Tel: +91 98333 73300 / +91 99306 51660 Tel: 022 6281 7003