#1IIFL WEALTH & ASSET MANAGEMENT Quarterly Performance Review - Q3 FY 20 January 2020 IIFL WEALTH & ASSET MANAGEMENT#2A LEADER IN WEALTH MANAGEMENT & ALTERNATES #1 Wealth Manager in India • . WEALTH MANAGEMENT • Discretionary • Non-Discretionary Broking and Distribution Services Corporate Advisory & Custody Services AUM: Rs. 1,41,208 Cr. IIFL WEALTH & ASSET MANAGEMENT #1 Manager of Alternates in India ASSET MANAGEMENT • Alternate Investment Funds Discretionary Portfolio Management • Mutual Funds • Global Asset Management AUM: Rs. 26,903 Cr. 14:14:44 48! 29 OFFICES FY 20 Q3 € PAT at 76 Crs Consolidated AUM Incl Custody Assets Rs 1,78,921 Cr. 1. Relevant Families: Basis Number of families with AUM as on the 31st Dec 2019 in excess of Rs 1 Cr 2. AUM as on 31st Dec 2019. Wealth AUM excludes custody assets. 2 900+ Employees 64 Teams with 288+ RMS 5,600+ RELEVANT FAMILIES¹ IIFL WEALTH & ASSET MANAGEMENT#33 KEY BUSINESS HIGHLIGHTS IIFL WEALTH & ASSET MANAGEMENT#44 KEY BUSINESS HIGHLIGHTS 1 Overall client sentiment for new investments has improved, however larger domestic and international macro economic factors are still an overhang to the emerging positive sentiment • • • Growth in addressable market due to monetization and corporate action events continuing at a steady pace Industry continues to see consolidation trends, providing client and talent acquisition opportunities New client acquisition and net flows remain strong with 100+ relevant families added in the last quarter 2 Stable financial performance with growth across all key metrics - Annual Recurring Revenues, AUMS, Retentions . • Overall AUM has grown 5% QoQ to Rs 150,762 crs; Strong growth in ARR assets - 10% QoQ to Rs 70,434 Crs, including 42% QoQ in IIFL ONE (PMS) AUM Overall Revenues have grown 15% QoQ to Rs 244 Crs, with Annual Recurring Revenues growing at 11% QoQ/ 20% YoY to Rs 139 Crs • PBT growth at 22% QoQ to Rs 100 Crs; PAT growth at 9% QoQ to Rs 76 Crs • • • Net new money for the 9 months ending Dec 2019 stands at almost Rs. 9,000 Crs Continued focus on productivity and cost optimization - impact expected to be visible over Q4FY20/Q1FY21 Interim dividend of Rs 10, taking total dividend declared in FY20 to Rs 20. Expect to maintain a dividend payout policy of 50-75% of yearly PAT IIFL WEALTH & ASSET MANAGEMENT#5LO 5 KEY BUSINESS HIGHLIGHTS 3 4 5 Wealth Management: Strong client acquisition and AUM growth numbers in IIFL ONE underpin the increased momentum in the transition. • Strong quarterly growth in high quality assets - Wealth ARR AUM increase by Rs 2,936 Crs to Rs 43,532 Crs IIFL One, our flagship proposition, continues to be core focus area - Asset growth has accelerated at 41.7% QoQ to Rs 16,082 Crs Average AUM per family under IIFL One increased by 24.9% to Rs 43.4 Crs and retentions (excluding Corporate Treasury and non fee earning assets) hold steady at 42 bps Strong momentum on Discretionary PMS - will continue to be key growth driver over next 12 months Asset Management: Stellar performance across all listed equity schemes driving strong growth in AUMS • • Overall AMC Assets have increased 14.9% QoQ to Rs 26,903 Crs while revenues have increased 26.3% QoQ to Rs 41 Crs (Excluding other income) Our PMS schemes have being consistently ranked in top 3 in the country across various time periods. ● AUM in our listed equity strategies has increased over 50% in the current FY to Rs 9,215 Crs. • Continued focus on scaling up across existing AIF / PMS products and selectively adding new strategies basis market opportunities Enhanced distribution coverage, added 63 distribution partners/channel partners over the past year. Other key highlights from the quarter Successful completion of Wealth Advisors (WAI) integration Acquisition of the wealth management business of L&T Finance awaiting statutory approval IIFL WEALTH & ASSET MANAGEMENT#69 6 BUSINESS SUMMARY INR Cr Closing AUM FY 20 9M FY 20 Q3 FY 20 Q2 FY 20 Q1 FY 19 9M FY 19 Q3 FY 19 Q2 FY 19 Q1 Recurring Revenue Assets 70,434 Transactional Brokerage Assets 101,703 Total AUM 172,137 Less: Double counted Assets Net Total AUM Revenues Recurring Revenues Transactional / Brokerage Income Other Income 21,375 150,762 70,434 64,016 101,703 99,276 172,137 163,292 21,375 19,436 150,762 143,856 63,530 52,907 674 244 212 217 52,907 97,930 95,661 95,661 161,460 148,568 148,568 19,149 18,534 18,534 142,312 130,034 130,034 821 232 45,561 94,197 88,179 139,758 133,200 19,541 18,674 120,217 114,527 45,021 295 294 393 139 125 129 319 116 103 100 271 82 106 82 460 103 165 191 10 23 -19 6 43 13 27 3 Retention 0.63% 0.66% 0.59% 0.62% 0.90% 0.74% 1.01% 1.03% Recurring Revenue Assets basis avg AUM 0.81% 0.83% 0.78% 0.84% 0.87% 0.94% 0.91% 0.88% Transactional / Brokerage Assets basis Gross Flows 0.50% 0.46% 0.56% 0.49% 0.81% 0.72% 0.78% 0.90% Costs 402 144 130 127 412 129 140 143 Employee Costs 262 99 83 81 277 79 94 104 Fixed Employee Costs 229 74 76 78 222 78 69 74 Variable Employee Costs 33 25 6 2 55 0 25 30 Admin and Other Expenses 140 46 48 46 135 50 46 39 Profit Metrics Profit before Taxes (PBT) 272 100 82 90 409 103 155 151 Profit After Tax (PAT) 207 76 70 61 300 75 108 117 Effective Tax Rates 24% 25% 16% 32% 27% 22% 35% 28% Cost to Income Ratio ROE ROE Ex Goodwill & Intangibles 59.61% 59.01% 61.40% 58.47% 50.19% 55.56% 47.56% 48.58% 9.25% 9.94% 9.27% 8.32% 17.02% 10.59% 15.88% 20.96% 10.10% 10.84% 10.13% 9.20% 17.95% 11.05% 15.88% 20.98% Earning Per Share- Basic (Rs) 23.82% 8.54% 7.88 7.23 34.91 9.54 11.87 Earning Per Share- Diluted (Rs) 23.41% 8.39% 7.77 7.03 33.95 9.28 11.50 IIFL WEALTH & ASSET MANAGEMENT#7CONSOLIDATED FINANCIALS - RE CLASSIFIED RESULT TABLE Particulars Dec 31, 2019 Fee based Income (A) 1. (iii) Fees and commission Income 1.(iv) Net gain on fair value changes (Reclassified) 2. (iii) Net loss on fair value changes (Reclassified) 2. (ii) Fees and commission expense 2. (ix) Others expenses (Reclassified) Fund based Income (B) 1. (i) Interest Income 1. (ii) Dividend & Distribution income on investments 1.(iv) Net gain on fair value changes 1. (v) Sale of products 1. (II) Other Income Total of Fund based Income 2. (i) Finance Costs 163 Quarter Ended Sept 30, 2019 176 9M Ended Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 159 489 617 177 168 483 633 10 80 34 20 8 (20) (16) (65) (43) (2) (5 (9) (15) 37 74 185 204 2. (iii) Net loss on fair value changes 2. (v) Impairment on financial instruments 2. (vii) Purchases of Stock-in-trade ཚོས༔-2 192 159 574 505 0 1 3 27 0 18 39 0 0 0 35 0 6 4 22 25 198 182 673 (209) (142) (114) (457) 557 (353) -(21) 0 0 2 6 4 7 (15) 0 0 (15) 0 2. (viii) Changes in Inventories of finished goods, stock-in-trade and wip Total of Fund based Expenses 0 0 (20) 0 (255) (161) (108) (488) (353) 3. Net Revenue (A+B) 212 232 674 821 4. Expenses (Indirect Cost) 130 128 402 410 (vii) Employee Benefits Expenses 80 77 253 273 (viii) Depreciation, amortization and impairment 10 6 31 14 (ix) Others expenses 40 45 117 124 5. Profit before tax (3-4) 100 82 104 272 411 5. Profit After Tax (Incl OCI) 76 70 77 206 301 (XIII) Earnings per equity share Basic (In Rs.) Diluted (In Rs.) * 8.54 7.88 9.54 23.82 * 8.39 7.77 9.28 23.41 34.91 33.95 7 Distribution related incomes categorized under the heading Net Gain / Loss on fair value changes have been reclassified under Fee based Income to correctly reflect the nature of such Incomes. IIFL WEALTH & ASSET MANAGEMENT#8BREAKDOWN OF NET FUND BASED INCOMES Rs in Crs. Average Q3 FY 20 Income Expense Net Capital Deployed Total Fund Based 306 (225) 81 2783 NIM on Loans 118 (60) 58 1881 Hedged Investments 106 (106) 0 85 Investment & Treasury Incomes 82 (59) 23 817 Remarks Average Capital Deployed Excluding Goodwill & Intangibles NIM earned on Average Loans outstanding for the period Incomes and Expenses including MTM on hedged instruments which have no impact on our financials Primarily Investments in AIF's as Sponsor / Distributer Q2 FY 20 Income Expense Net Average Capital Deployed Remarks Total Fund Based 198 (161) 37 2738 Average Capital Deployed Excluding Goodwill & Intangibles NIM on Loans 120 (64) 56 1914 Hedged Investments 66 (66) 0 85 Investment & Treasury Incomes 12 (31) (19) 739 NIM earned on Average Loans outstanding for the period Incomes and Expenses including MTM on hedged instruments which have no impact on our financials Primarily Investments in AIF's as Sponsor / Distributer IIFL WEALTH & ASSET MANAGEMENT 8#9CONSOLIDATED BALANCE SHEET Rs in Crs. ASSETS As at Dec 31, As at Sep LIABILITIES AND EQUITY 30, 2019 2019 As at As at Sep Dec 31, |30, 2019 2019 1 Financial Assets 1 Financial Liabilities (a) Cash and cash equivalents 242 696 (a) Derivative financial instruments 266 249 (b) Bank Balance other than (a) above 96 111 (b) Payables 199 411 (c) Derivative financial instruments 115 100 (c) Debt Securities 3,994 4,299 (d) Receivables (d) Borrowings (Other than Debt Securities) 2,925 2,360 (I) Trade Receivables 265 386 (II) Other Receivables 65 270 (e) Loans 4,114 3,937 (e) Subordinated Liabilities (f) Investments 5,849 5,161 (f) Other financial liabilities (g) Other Financial assets 70 89 Finance Lease Obligation 570 570 400 360 42 41 2 Non-Financial Assets 2 Non-Financial Liabilities (a) Inventories 0 9 (a) Current tax liabilities (Net) 34 28 (b) Current tax assets (Net) (c) Deferred tax Assets (Net) ང་ 53 50 (b) Provisions 8 10 16 18 (c) Deferred tax liabilities (Net) 26 20 (d) Investment Property 0 (d) Other non-financial liabilities 44 84 (e) Property, Plant and Equipment 296 299 3 Equity 0 (f) Capital work-in-progress 4 4 (a) Equity Share capital 17 17 (g) Intangible assets under Development 0 (b) Other Equity 3045 3,042 (h) Goodwill 188 188 (c) Non-controlling interest (i) Other Intangible assets 89 91 Right to use 41 40 Other non-financial assets 67 42 Total Assets 11,570 11,491 Total Liabilities and Equity 11,570 11,491 9 IIFL WEALTH & ASSET MANAGEMENT#1010 * BREAKDOWN OF INVESTMENTS Dec 31, 2019 Sep 30, 2019 Dec 31, Sep 30, 2019 2019 Investments 5,964 5,261 Borrowings 7,755 7,478 Derivative financial instruments [1c] 115 100 Derivative Financial Instruments [1a] 266 249 Investments [1f] 5,849 5,161 Debt Securities [1c] 3,994 4,299 Borrowings (Other than Debt Securities) [1d] 2,925 2,360 Subordinated debt [1e] 570 570 Investments split as 5,964 5,261 Borrowings split as Hedged Investments* 4,362 3,938 Hedged Borrowing 7,755 7,478 4,362 3,938 Liquid Investments 770 430 In-transit Investments 63 244 Net Borrowings for business 3,392 3,540 (Available for Sale) Investment in AIF Sponsor Non-Sponsor 439 424 329 225 Hedged Investments consist of products structured for clients on 1. Government of India Securities (Gsec) - 73% 2. Perpetual Bonds issued by Nationalized & Private Banks – 24% 3. Market linked debentures basis Nifty Performance - 3% (Includes Derivative financial instruments - 114.60) Total Capital used for Hedged Investments: 85 Crs. This allows for a 25-30 bps reduction in cost of borrowing without any MTM risk on the capital deployed IIFL WEALTH & ASSET MANAGEMENT#1111 BREAK DOWN OF INVESTMENTS Investment Type Category Description Amt (in Cr) % of Total Investment Govt Securities Govt Securities Punjab National Bank 3,205 54% 285 5% State Bank of India 274 5% PSU Bank Perpetuals Syndicate Bank 146 2% Bank of Baroda 71 1% Hedged Investments Union Bank 51 1% ICICI Bank 137 2% Private Bank Perpetuals Indusind Bank 77 1% HDFC Bank 3 0% Nifty Linked Option Exchange 115 2% Hedged Investments 4,362 73% Liquid Fund 633 11% Liquid Investments Mutual Funds Other Debt Funds 135 2% IIFL Focused Fund 2 0% Liquid Investments 770 13% AIF AIF AIF AIF AIF Sponsor 439 7% Non Sponsor 329 6% 768 13% In Transit Investments High Quality Bonds Total Investment 63 1% 5,964 100% IIFL WEALTH & ASSET MANAGEMENT#1212 BREAK DOWN OF LOAN BOOK • Loan Book 3,615 6,715 4,798 4,027 Loan Spread 2.7% 2.4% 1.7% 1.8% FY17 FY18 FY19 FY 20 9M FY17 FY18 FY19 FY 20 9M NBFC is an enabler for Wealth Management Business. No Sales / Distribution Cost as all loans sourced by the Wealth RM's Loan book on 31st Dec 2019 at INR 4,027 cr was ~4.6% higher than H1 FY20 loan book of INR 3,851 cr Borrowing book (~80%+ on average) remains in the form of market linked, long dated liabilities - median cost and stable source of money The book has had zero credit losses since inception FY 20 9M Loans Disbursed Loans Repaid INR cr 5,492 6,263 Net Movement (772) IIFL WEALTH & ASSET MANAGEMENT#13CONSOLIDATED METRICS BY BUSINESS SEGMENT Assets Under Management - YoY (Rs. Cr.) Assets Under Management - QoQ (Rs. Cr.) Wealth Mangement Wealth Mangement ■Asset Management Asset Management 178,921 1,67,746 167,746 AMC Assets Distributed by Wealth Custody Assets 130,981 31,145 28,159 26,903 1,59,169 31,145 1,73,245 30,933 178,921 1,72,763 28,159 28,907 29,136 26,903 20,773 18,564 18,451 20,773 22,339 23,420 94,919 13,395 62,164 2,892 9.017 8939 1,41,208 1,29,919 1,25,369 1,29,919 1,34,506 1,36,021 1,41,208 1,10,833 5,455 85,839 59,049 (5 3221 (8,875) FY16 FY17 (11,811) FY18 (14,091) FY19 (17,348) FY20 9M (13,786) FY 19 Q3 (14,091) FY 19 Q4 (14,534) FY20 Q1 (15,585) FY20 Q2 (17,348) FY20 Q3 Profitability FY16 FY17 FY18 FY19 FY 20 9M Net Flows Wealth Management AUM( In Crs. ) Negative Revenue 451 691 930 919 542 8,898 Positive 2,099 179 1,78,921 1,67,746 Costs 240 338 474 427 319 1,30,981 PBT 211 353 456 492 223 Asset Management Revenue 58 95 95 113 148 132 Costs 43 63 92 103 83 PBT 15 32 21 45 49 Mar-18 Mar-19 Net New Money Inorganic Growth Market Forex Performance Fluctuations Dec-19 1. Costs include allocated costs that have been split between the Wealth and Asset Management verticals on the basis of a formula that gives 50% weightage to Net Revenues & 50% weightage to Employee Costs 13 2. AUM split for Q3 FY20: Debt 55%, Equity 45%, IIFL WEALTH & ASSET MANAGEMENT#1414 CONSOLIDATED METRICS YOY Assets Under Management (Rs. Cr.) Excluding Custody Annual Recurring Revenue Assets ■Transactional / Brokerage Assets Net Revenues (Rs. Cr.) & Yields (%) Annual Recurring Revenue Transactional / Brokerage Income ■Less: AMC Assets distributed by wealth + Loan Assets double counted 150,762 136,601 0.92% 112,416 1,01,703 85,902 97,220 86,091 59,272 509 68,540 Other Income Overall Yield 1.08% 1.05% 1,043 1,067 14 0.86% 44 786 0.63% 78 579 662 674 10 271 15 45 469 43,361 70,434 356 58,270 21,144 29,852 (5,233) (12,490) FY16 FY17 44,852 (18,526) FY18 444 367 393 239 108 (18,889) FY19 (21,375) FY 20 9M FY16 FY17 FY18 FY19 FY 20 9M Profitability (Rs. Cr.) Cost Mix (Rs. Cr.) 24.0% 19.0% 22.0% 16.2% 9.2% ROE % ■ PAT (Rs Crs) 384 369 169 264 207 55.5% 51.1% 54.2% 49.7% 59.6% Employee Costs 566 Admin and Other Expenses 530 ◆ Cost to income ratio 170 401 193 402 122 140 282 90 396 337 279 262 192 FY16 FY17 FY18 FY19 FY 20 9M FY16 FY17 FY18 FY19 FY 20 9M 1. Net Revenues are calculated after setting of all direct operating and financing costs 2. Cost to income ratios have been calculated basis Net Revenues 3. Yield = Current year Net Revenue /Avg. of current year Assets and Previous year assets (Excluding custody Assets) IIFL WEALTH & ASSET MANAGEMENT#1515 CONSOLIDATED METRICS QoQ Assets Under Management (Rs. Cr.) Excluding Custody Annual Recurring Revenue Assets ■Transactional / Brokerage Assets ■Less: AMC Assets distributed by wealth + Loan Assets double counted Net Revenues (Rs. Cr.) & Yields (%) Annual Recurring Revenue Transactional Brokerage Income - Other Income Yield 0.66% 0.74% 0.74% 0.62% 150,762 142,312 143,856 0.59% 130,034 136,601 246 244 232 212 217 23 13 1,01,703 97,930 99,276 120 97,220 95,661 103 82 106 82 82 116 125 129 125 139 52,907 58,270 63,530 64,016 70,434 -19 (18,534) (18,889) FY 19 Q3 FY 19 Q4 (19,149) FY 20 Q1 (19,436) FY 20 Q2 (21,375) FY 20 Q3 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 Profitability (Rs. Cr.) 10.5% 11.6% 8.3% 9.3% 9.9% ROE % ■ PAT (Rs Crs) 84 75 16 70 61 Cost Mix (Rs. Cr.) 55.6% 47.8% 58.5% - Fixed Employee Costs Admin and Other Expenses 61.4% Variable Employee Costs Cost to income ratio 59.0% 76 118 144 129 127 130 46 58 50 46 48 25 2 79 85 79 76 74 (25) FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 1. Net Revenues are calculated after setting of all direct operating and financing costs 2. Cost to income ratios have been calculated basis Net Revenues 3. Yield = Current year Net Revenue /Avg. of current year Assets and Previous year assets (Excluding custody Assets) IIFL WEALTH & ASSET MANAGEMENT#1616 CONSOLIDATED METRICS YOY Recurring Revenue Assets (Rs. Cr.) PMS - Discretionary / Non-Discretionary / Advisory ■Funds Managed by IIFL AMC ■Mutual Funds Distributed ■Managed Accounts Distributed Loans Recurring Revenues (Rs. Cr.) ■Fees on PMS - Discretionary / Non-Discretionary / Advisory Management Fees on Funds Managed by IIFL AMC ■Trail Commission on Mutual Funds Distributed 70,435 58,270 4,027 4,905 ■ Trail Commission on Managed Accounts Distributed ■ROA on Loans 444 393 4,798 367 44,852 4,736 18,518 222 174 6,715 29,852 2598 19,249 239 206 21,144 3.615 26,903 26 23 20,478 110 1,312 108 10 66 20,773 101 15,400 9 14,303 74 3 99 287 76 105 13,395 16,082 83 80 5,455 8,939 8,714 47 48 1,666 22 15 FY16 FY17 FY18 FY19 FY 20 9M FY16 FY17 FY18 FY19 24 FY 20 9M Transactional / Brokerage Assets (Rs. Cr.) Direct Stocks Structured Notes & Bonds ■Mutual Funds Distributed 101,702 Transactional / Brokerage Revenues ■Direct Stocks ■Structured Notes & Bonds Mutual Funds - Direct Code / Feeders Other Brokerage / Syndications Commissions on Mutual Funds Distributed ■Commission on Managed Accounts Distributed Carry Income / One time Income ■Mutual Funds - Direct Code / Feeders 97,220 ■Managed Accounts Distributed 86,091 19,619 18,069 662 29 579 68,540 15,110 47 22,787 24,511 469 10,403 15,260 10 376 43,361 8,745 356 250 12,426 12,976 10,419 200 36 5,445 13,069 1,408 53 271 10,425 17,771 15,812 20,543 48 67 51 18,898 67 63 155 28 46 17,115 25,524 27,575 26,610 119 113 67 143 23 17,425 8,967 93 38 47 67 38 FY16 FY17 FY18 FY19 FY 20 9M FY16 FY17 FY18 FY19 FY 20 9M IIFL WEALTH & ASSET MANAGEMENT#1717 CONSOLIDATED METRICS QOQ Recurring Revenue Assets (Rs. Cr.) ■ PMS - Discretionary / Non-Discretionary/Advisory ■Funds Managed by IIFL AMC ■Mutual Funds Distributed ■Managed Accounts Distributed Recurring Revenues (Rs. Cr.) ■Fees on PMS - Discretionary / Non-Discretionary / Advisory Management Fees on Funds Managed by IIFL AMC ■Trail Commission on Mutual Funds Distributed 70,435 63,530 64,016 4,027 Loans ■ Trail Commission on Managed Accounts Distributed ■ROA on Loans 139 58,270 52,907 4,615 3,851 4,905 129 125 125 4,798 4,814 5,115 116 4,748 4,736 18,518 58 2895 21,456 20,276 61 61 56 19,249 60 8 21,938 26,903 8 8 23 22,339 23,420 22 21 20,773 27 25 18,451 41 31 33 16,082 23 8,714 10,306 11,354 19 4.875 8 9 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 Transactional / Brokerage Assets (Rs. Cr.) Direct Stocks Structured Notes & Bonds Mutual Funds - Direct Code / Feeders Mutual Funds Distributed ■Managed Accounts Distributed Transactional / Brokerage Revenues ■Direct Stocks ■Structured Notes & Bonds ■Commission on Managed Accounts Distributed ■Carry Income / One time Income ■Commission on Mutual Funds Distributed Other Brokerage / Syndications 95,660 97,220 97,930 99,276 101,702 120 18,936 18,069 18,309 18,162 19,619 103 7 107 11 26 18,488 22,788 24,028 25,965 24,511 82 32 82 32 16 13,586 12,976 9,385 8,327 10,419 29 29 78 48 13,834 15,812 17,061 16,851 20,543 63 48 47 30,816 27,575 29,147 29,971 20 27 26,610 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 8 FY 19 Q3 9 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 1. Recurring Revenues for FY 20 Q1 already reflect a Rs 5 crs reduction in Mutual fund revenues due to TER reduction. IIFL WEALTH & ASSET MANAGEMENT#1818 WEALTH MANAGEMENT AUM by Products YoY (Rs. Cr.) ■ PMS - Discretionary / Non-Discretionary / Advisory Mutual Funds Distributed ■Managed Accounts Distributed Equity Stocks Structured Notes and Bonds - ■PMS - Discretionary / Non-Discretionary/Advisory Yield (%) AUM by Products QoQ (Rs. Cr.) ■Managed Accounts Distributed Equity Stocks Structured Notes and Bonds Mutual Funds Distributed Yield (%) 0.66% 0.64% 136,021 141,207 0.95% 0.95% 141,207 129,919 134,506 0.82% 129,919 15,812 125,369 20,543 20,543 17061 16,851 13,834 15,812 110,833 0.54% 0.55% 0.76% 26,610 27,575 29,147 29,971 0.51% 26,610 17,771 27,575 30,816 85,839 24,524 25,524 24,524 18,898 22,805 0.53% 22,805 23,122 23,277 21,832 59,049 17,425 17,708 17,115 12,015 53,448 8.967 55,012 48,164 37,214 26,136 74 16,082 8.714 307 207 FY 16 FY 17 1,666 FY 18 FY 19 FY 20 9M 53,448 55,012 54,869 54,568 54,012 4,875 FY 19 Q3 8,714 FY 19 Q4 10,306 FY 20 Q1 11,354 FY 20 Q2 16,082 FY 20 Q3 Net Revenues by Products YoY (Rs. Cr.) ■PMS - Discretionary/Non-Discretionary/Advisory ■Managed Accounts Distributed Other Brokerage / Syndications Net Revenues by Products QoQ (Rs. Cr.) Equity Stocks Mutual Funds Distributed Structured Notes and Bonds ROA on Loans PMS - Discretionary / Non-Discretionary/Advisory ■Managed Accounts Distributed Mutual Funds Distributed Other Income 931 46 919 Other Brokerage / Syndications Equity Stocks Structured Notes and Bonds Other Income ROA on Loans 23 204 43 199 173 190 20 206 179 691 222 2 10 10 40 67 61 29 28 67 542 60 78 48 110 143 451 113 38 155 61 45 48 63 58 47 387 56 23 6 276 174 7 8 119 205 47 93 23 20 27 39 34 7 9 8 8 131 148 176 163 66 27 29 22 21 23 11 4 -22 -17 (26) FY 16 FY 17 FY 18 FY 19 FY 20 9M FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 1. Yield = Current year Revenue/Avg AUM. (Current year AUM / Previous year AUM) IIFL WEALTH & ASSET MANAGEMENT#1919 ASSET MANAGEMENT AUM by Products YoY (Rs. Cr.) and Yield % AUM by Products QoQ (Rs. Cr.) and Yield % 1.4% 1.3% 20,773 26,903 Discretionary Portfolio Management Schemes ■Mutual Fund Alternative Investment Fund -Yield (%) 0.9% 0.8% 0.9% 26,903 1.0% ■Discretionary Portfolio Management Schemes 22,339 23,420 0.9% 0.7% ■Mutual Fund 20,772 13,395 0.7% 0.7% 18,452 ■ Alternative Investment Fund 19,213 -Yield (%) 8,939 19,213 16,499 16,959 15,661 15,661 14,225 5,455 11,736 1,851 7,715 625 4,097 492 1,486 901 5,839 3,625 866 598 758 FY 16 FY 17 FY 18 FY 19 FY 20 9M 1 199 1.670 1.486 3,625 1329 4,511 5,262 1.851 5,839 2,557 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 Net Revenues by Products YoY (Rs. Cr.) ■Discretionary Portfolio Management Schemes ■Mutual Fund ■ Alternative Investment Fund 148 133 21 113 28 95 36 38 103 58 87 54 2 FY16 52 52 2 FY17 68 ထ FY 18 8 16 FY 19 Net Revenues by Products QoQ (Rs. Cr.) Discretionary Portfolio Management Schemes ■Mutual Fund Alternative Investment Fund Carry / One Time Incomes Other Income 55 14 42 38 39 33 11 7 7 4 7 11 34 26 27 14 13 3 7 15 FY 20 9M FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 20 Q2 FY 20 Q3 1. Carry Income: Revenue earned as performance fees at the maturity of a fund, or at the end of a defined period as agreed with clients / investors. 2. Yield = Current year Revenue/Avg AUM. (Current year AUM / Previous year AUM) IIFL WEALTH & ASSET MANAGEMENT#20MULTIPLE AWARDS & ACCOLADES 20 20 EUROMONEY PRIVATE BANKING SURVEY 2018 ASIAN ASSET AWARDS A THE Asset TRIPLE A 2016 ★ BEST FAMILY OFFICE SERVICES BEST SUCCESSION PLANNING ADVICE AND TRUSTS PRIVATE B BEST BANK KAWARD 2018 GLOBAL FINANCE 90 AWARDS IN 11 YEARS BEST DIGITAL WEALTH MANAGEMENT EXPERIENCE - 2017 THE ECONOMIC TIMES Pb BFSI BEST BRANDS 2018 BEST PRIVATE BANK, INDIA 2018 BFSI BEST BRANDS 2017 PRIDE OF ASIA THE 2018 DMA ASIA asia 2013 ECHO WealthForum AWARDS 2013 Printed by DIMAL CREATEFFECT ASIAMONEY POLLS 2015 cfi.co AWARDS 2016 Intment ewends 2016 utl WealthBriefing TY II INDINS GREATEST BRANDS & LEADERS 2017-11 FINANCIAL ADVISOR AWARDS 201.14 A COUNTRY AWARDS 2018 ASIAMONEY PRIVATE BANKER INTERNATIONAL ASIAN PRIVATE BANKER AWARDS FOR DISTINCTION 2015 AWARDS Best Domestic Private Bank India EUROMONEY PRIVATE BANKING 2019 INDIA WEALTH AWARDS 2018 wool fence2016 alternative investment IIFL WEALTH & ASSET MANAGEMENT#2121 DISCLAIMER This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasing or selling securities or other financial products or instruments in any jurisdiction. The documents is not for public distribution and should not be reproduced or redistributed to any other person or in any form without IIFL Wealth Management Limited (IIFLW) prior permission. It is not directed to, or for any use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to local law, regulation or which would subject IIFLW to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restrictions. Any action taken by you on the basis of the information contained herein is your responsibility alone and IIFLW and its subsidiaries and affiliates or their respective employees or directors will not be responsible or liable in any manner for the consequences of such action taken by you. IIFLW or any of its subsidiaries or associates or their respective directors or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error or omission in the information contained in this document. The recipients of this document should rely on their own investigations or advisors. IIFLW and/or its subsidiaries and/or its affiliates and their respective directors or employees may have interests or positions, financial or otherwise, in the securities mentioned in this document. The information contained herein has been prepared to assist interested parties in making their own evaluation of IIFLW and while reasonable endeavours have been made to present reliable data so far as it relates to current and historical information does not purport to be complete or to contain all information that a prospective investor may desire or that may be required in order to properly evaluate the business, prospects or value of IIFLW. In all cases, interested parties should conduct their own investigation and analysis of IIFLW and the data set forth in this document. The information and opinions contained in this document are provided as at the date of this document and are subject to change without notice. We do not undertake responsibility to update any information contained herein. Securities investments are subject to market risks. As with any securities investment, the value of a security can go up or down depending on the factors and forces affecting the capital markets. In considering the prior performance information contained in this document, prospective investors are reminded that past performance is not necessarily indicative of future results, and there can be no assurance that IIFLW and its subsidiaries will achieve comparable results. Therefore, prospective investors should not place undue reliance on such prior performance information. By receiving a copy of this document, you agree to be bound by the provisions contained herein. Any industry data and statistics have been obtained or derived from IIFL Wealth Management Limited and published industry sources or publicly available information. Any forward looking statement or information given is based on management's current estimates and internal goals and is subject to change. The actual performance can be materially different. Therefore, the accuracy or completeness of these expectations cannot be guaranteed. All Data and Performance numbers as shown in this presentation are pre acquisition of IIFL Media & Research Limited (IMRL) pursuant to the composite scheme of arrangement. IMRL data has not been considered in the data displayed in this presentation IIFL WEALTH & ASSET MANAGEMENT#22THANK YOU. IIFL WEALTH & ASSET MANAGEMENT