Announcement under Regulation 30 (LODR)-Investor Presentation

27th Annual General Meeting - Presentation

19 days ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 22
  • 1 Steady performance across businesses – upward trend across key metrics 2 Growth in customer franchise enabled by digital ecosystems and synergistic partnerships 3 Significant improvement in asset quality; aided by strong wholesale recoveries and high retail collection efficiency 4

  • Robust Balance Sheet - comfortable liquidity and well capitalized businesses 5

  • Asset Quality (%) GNPA NNPA 6.7 5.8 2.5 1.8 Mar 21 Mar 22 Total provision cover improved to 189% as on Mar 22 from 70% as on Mar 21 9

  • Reduction in debt by ~30% over last 2 years; net D/E improved to 2x Strong capitalization across businesses; well above regulatory requirements Comfortable liquidity of INR 5,500 Cr at ~23% of debt 10

  • Further reduction by ~60% in the next 2 years aided by strong demand in real estate 14

  • Fastest growing amongst the top 15 Asset Management Companies in the industry and top 10 in the fixed income segment with continued leadership in debt passives segment India’s leading Alternative Asset manager with AUM growth of 15x over the past 7 years, credited with pioneering strategies in private debt and infra yield segments

  • Amongst the fastest growing General Insurance player with innovative industry-first digital solutions Youngest and fastest growing Life Insurance player with individual APE growing at a 5-year CAGR of 21% against industry growth at 10% 19

  • One of the only two Asian players featured in PDI list of the top 100 fund raisers globally for 2021 12,000 4th largest by capital raise over 10 years in Asia Mar 18 Mar 20 Mar 22 Business poised to enter compounding phase; expected AuM growth of ~3x over the next 5 years 21

  • Life Insurance 4 Robust growth with superior business quality LI – Gross Premium for the year (INR Cr)

  • Total premium grew at a CAGR of 23% against industry growth of 11% since Mar 18 22

  • Gross premium grew at ~5x of industry growth since Mar 18 23

  • Unlock this value towards creating a win-win for the business and shareholders 3 Be financially strong and resilient by reducing debt and holding comfortable liquidity 26

  • • NNPA improved to 1.96% as on Mar 22 from 2.31% on Dec 21 and 6.83% on Mar 21 - Retail collection efficiency at 96% for the quarter ended Mar 22 NBFC - Strong wholesale recoveries of ~INR 1,600 Cr in the quarter ended Mar 22, momentum expected to continue • NNPA improved to 1.46% as on Mar 22 from 2.98% as on Dec 21 and 3.14% on Mar 21 Housing Finance - Retail collection efficiency at 101% for the quarter ended Mar 22 • Partnered with State Bank of India for CLM tie-up in the quarter ended Mar 22 •

  • AUM grew ~55

  • ; share of Equity AUM rose to 23% as on Mar 22 Mutual Fund - Total net equity inflows doubled YoY to ~INR 8,000 Cr • Market share improved ~50 bps to ~2.2% with rank improving from 15 to 13 in the year

  • Fee paying AUM grew ~25% YoY; deployed ~INR 4,900 Cr in the year Asset •

  • PAT for the year grew by 2.4x YoY aided by onset of operating leverage, margins to see Management improvement 30

  • Asset • Robust recoveries of ~INR 6,900 Cr during the year; 11% from retail portfolio Reconstruction • Share of retail assets in capital employed grew ~4x YoY to ~14% as on Mar 22 - Gross premium grew at 66% QoQ & 20% for the year

  • Strong YoY GDPI growth of ~60% in the year; industry growth at ~11% Insurance •

  • Issued ~3 lakh policies during the year; ~60% growth both QoQ & YoY

  • Wealth • AuA grew ~30% YoY; net new money of ~INR 10,500 Cr in the year Management •

  • LAS book grew 95% YoY and 20% QoQ to ~INR 3,000 Cr as on Mar 22 31

Negative 4
  • Planned debt reduction aligned with cash inflows from wholesale book 16

  • Reduced INR 5,500 Cr over 3 years Target of further reducing INR 5,500 over next 4 years 11,000 9,500 7,500 5,500 4,200 3,000 1,500 - Mar 19 Mar 20 Mar 21 Mar 22 Mar 23E Mar 24E Mar 25E Mar 26E 17

  • Post wholesale book reduction ~1,500 Total expected cashflow ~6,600

  • Post wholesale book reduction ~1,500 ~1,500 Total Total expected expected cashflow cashflow ~6,600

Mentioned Phrases & Organizations

Important keywords detected (20+)

edelweiss (36)
mar mar (28)
asset (21)
efsl (20)
insurance (18)
slide (17)
management (15)
equity (15)
assets (15)
stake (14)
mar mar mar (14)
numbers (13)
growth (12)
debt (12)
business (10)
expected (10)
industry (10)
pat (9)
wholesale (9)
yoy (9)

Organizations identified (10+)

EFSL (19)
INR Cr (5)
ECLF (3)
EWM (3)
CDPQ (3)
NBFC (2)
Edelweiss Wealth (2)
General Insurance (2)
Edelweiss Wealth Management (2)
Edelweiss Securities Limited (2)

Tables extracted (5)

BusinessMar 22
NBFC10,400
Housing Finance2,300
Asset Reconstruction3,350
Wealth Management3,530
BMU & Corporate5,550
Gross Borrowings25,130
(Less) liquid / treasury assets5,500
cashflow expected for repayment ofINR Cr
Stake monetisation • 14% of EWM~1,500 – 2,000
Stake sale in underlying business • ETLI & EHFL~1,000 – 2,000
Treasury Assets~600 – 800
Liquidation of Corporate Assets • Credit assets & Investments~2,000 - 2,500
ECLF equity release • Post wholesale book reduction~1,500
Total expected cashflow~6,600 – 8,800
cashflow cashflow expected expected for for repayment repayment of ofINR INR Cr Cr
Stake monetisation • 14% of EWM Stake monetisation • 14% of EWM~1,500 ~1,500 – – 2,000 2,000
Stake sale in underlying business • ETLI & EHFL Stake sale in underlying business • ETLI & EHFL~1,000 ~1,000 – – 2,000 2,000
Treasury Treasury Assets Assets~600 ~600 – – 800 800
Liquidation of Corporate Assets • Credit assets & Investments Liquidation of Corporate Assets • Credit assets & Investments~2,000 ~2,000 - - 2,500 2,500
ECLF equity release • Post wholesale book reduction ECLF equity release • Post wholesale book reduction~1,500 ~1,500
Total Total expected expected cashflow cashflow~6,600 ~6,600 – – 8,800 8,800
BusinessMetricAmount
NBFCBook Value4,000
Housing FinanceBook Value800
Asset ReconstructionBook Value2,600
Mutual FundAssets under Management88,000
Alternative Asset ManagementAssets under Management36,250
Life InsuranceEmbedded Value1,900
General InsuranceGross Written Premium500
Wealth ManagementProfit after Tax300
BusinessBusiness Intrinsic Value
NBFC4,000 - 4,800
Housing Finance1,400 - 1,600
Asset Reconstruction3,100
Mutual Fund2,600 – 4,400
Alternative Asset Management3,600 – 4,700
Life Insurance3,800 - 5,700
General Insurance2,000 – 2,500
Wealth Management7,500 – 9,000
Corporate Assets
Corporate Treasury
Total
(Less) Corporate Debt
Total

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