Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (November 2018)
18 slides from Edelweiss Financial Services's investor presentation, Nov 5, 2018
Slide 1: Addendum to Investor Presentation in US Dollar (BSE cover letter)
EVV/Sec/2018/383 ~ovember5,2018 BSE Limited P J Towers, Dalal Street, Fort, Mumbai- 400 001. Dear Sirs, Ref.:- Scrip Code: 532922 Sub: Addendum to Investor Presentation in US Dollar Enclosed please find an 'Addendum' to the Investor Presentation in US Dollar on Earnings Updates in respect of the qua
Slide 2: Outlook for H2FY19
(Apy Outlook for H2FY19 oO Edelweiss reate, values protect
Slide 3: Background
Background We are a diversified financial services company This allows us to manage volatility in earnings and de-risk profits We have a robust distressed assets management business We have market leading Wealth and Alternative Asset Management businesses Our credit book is split almost equally betw
Slide 4: Environment for NBFCs
Environment for NBFCs We are in an environment where liability management models are being tested This has made investors question the sustainability of growth in the NBFC model We have been here before in 2008 and also in 2013 This is a passing phase; we expect normalcy to return in next few months
Slide 5: Well positioned to tide over current liquidity conditions
Well positioned to tide over current liquidity conditions Liquidity is returning to the system steadily and slowly o We have raised ~ $ 359 Mn since September 21st, including $ 200 Mn in CPs o We have bought back around $ 138 Mn in CPs We have adequate liquidity cushion and our business inflows posi
Slide 6: Outlook for our Credit Business
Outlook for our Credit Business We will continue to grow our SME and small ticket housing loans in a focused manner o Our customer understanding and product suite in these segments enable us to have pricing power and hence protect NIMs We expect the corporate credit book on our balance sheet to redu
Slide 7: Outlook for our Distressed Assets Management business
Outlook for our Distressed Assets Management business We are witnessing strong traction in recoveries and some big ticket resolutions in the next two quarters We are also seeing significant interest from international institutions in our distressed assets fund, and are likely to close at around $ 1.
Slide 8: Outlook for our Wealth and Asset Management businesses
Outlook for our Wealth and Asset Management businesses Financialisation of savings will continue to drive growth in the Wealth Management business We expect market volatility will lead to consolidation in Wealth Management which will benefit larger players like us We expect to maintain our leadershi
Slide 9: Outlook for our Life Insurance business
Outlook for our Life Insurance business We have been one of the fastest growing life insurance companies and we expect our growth momentum to continue based on o Increased customer need for long term savings and investments o Our suite of differentiated products and superior customer experience We w
Slide 10: We have weathered several headwinds and maintained asset quality
We have weathered several headwinds and maintained asset quality Demonetization RERA + GST 2.50% 2.00% 1.74% 1.74% 1.75% 1.75% 1.78% 1.71% GNPA 1.59% 1.53% 1.45% 1.44% 1.46% 1.50% 1.40% 1.40% 1.31% 1.32% 1.00% 0.79% 0.74% NNPA 0.66% 0.68% 0.70% 0.60% 0.61% 0.55% 0.50% 0.47% 0.50% 0.47% 0.50% 0.44% 0
Slide 11: Organisational Update
Organisational Update One of the key aspects of our strategy has been to adapt our organisation structure for future readiness We have reorganised our businesses into three business groups o Credit: headed by Deepak Mittal o Franchise and Advisory: headed by Nitin Jain and Venkat Ramaswamy o Insuran
Slide 12: Few of Senior Hires in FY19
Few of Senior Hires in FY19 Experience Name Job Description Previous Organisation in years Ananya Suneja 20+ Head of Corporate MIS for the group Deutsche Bank Anuj Malhotra 20+ Head of Marketing – Wealth and Asset Mgmt Citibank Ashish Mundada 17+ Head of Product and Strategy for Alternatives Blackro
Slide 13: Update on Wholesale Mortgage
Update on Wholesale Mortgage
Slide 14: Wholesale Mortgage Overview
Wholesale Mortgage Overview Wholesale Mortgage market is ~ $ 69 Bn Edelweiss Wholesale Mortgage book size is ~ $ 1.7 Bn (~2.4% market share) o Project funding with exclusive control over project cashflows and collateral o All lending post land acquisition and key approvals o No standalone HoldCo len
Slide 15: Our Lending Philosophy
Our Lending Philosophy For Edelweiss Focus on residential real estate - a self liquidating asset 95%+ Ensure developer has enough skin in the game – land acquisition and key approvals 100% Sole lender status gives exclusive control 95%+ Healthy exposure to faster moving stock - household units in th
Slide 16: Wholesale Mortgage – Risk Management
Wholesale Mortgage – Risk Management Underwriting o Ensure developer has enough skin in the game - post land acquisition and key approvals o Well collateralized at ~1.9x cover; Exclusive charge on the collateral and cashflow control Asset Monitoring and Resolutions o Dedicated team monitors project
Slide 17: Stable Asset Quality
Stable Asset Quality 1 Wholesale Mortgage Loan Book $ 1,622 Mn 5 accounts amounting to 2 Stage 3 Accounts $ 48 Mn 84% cash recovery and 3 Historical recovery on default cases rest in other assets 4 Provisions as per ECL model (basis our historical experience) $ 5 Mn 5 Provisions on the books (volunt
Slide 18: Safe Harbor
Safe Harbor This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Limited or any of its subsidiaries and associate companies (“Edelweiss”). The results in future may vary from the forward-l
Edelweiss Financial Services — Investor Presentation (November 2018) on 6ix