JM Financial Limited Investor Presentation May 13, 2016
Safe harbour
This presentation describing our activities, projections and expectations for the future, may contain certain ‘forward looking statements’ within the meaning of applicable laws and regulations. The actual results of business may differ materially from those expressed or implied due to various risk factors and uncertainties. These risk factors and uncertainties include the effect of domestic as well as global economic and political events, volatility in interest rates and in the securities market, new regulations and government policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward looking statement on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.
2
Sustainable growth – Oriented portfolio Revenue & PBT in ` Cr.
• JM Financial is a four decade old institution founded by Mr. Nimesh Kampani
Investment Banking, Securities and Wealth Management
• Servicing clients across the financial services spectrum • PAN India Presence
•
• •
Corporate Finance Advisory • M&A Advisory – domestic & cross border • Private Equity Synd • Equity Capital Markets -
Debt Capital Markets Equity Research, Sales & Trading Wealth Management Financial Products Distribution
•
Margin Financing
•
Commercial Real Estate
•
Loan against property
•
Debt Restructuring
•
Loan against Shares
•
ESOP Funding
•
Broker Funding
•
46% 19%
600
Fund based activities
•
FY12
• Pioneered innovative products in the financial services space • •
50
Real Estate Fund
FY13 FY14 FY15 Revenue PBT 53% 72%
53% 71%
FY13 FY14 FY15 Revenue PBT 3%
1%
3%
1%
549
347
200
3%
3%
FY16
5%
8%
86 29
30 (2) FY12
5%
18
4
FY13 FY14 FY15 Revenue PBT 3%
6%
3%
56
47
27 2
7%
2%
3%
FY16
1%
1%
46 9
30 16
27
19
15
12
4
0 FY13
FY14
FY15
Revenue
319 214
200
Acquisition of Bank NPA’s and resolution thereof
FY16
PBT
400
•
FY16
806
529
FY12
FY12
Asset Reconstruction Business
79
57% 67% 64% 79%
552 183
27 25
Private Equity Fund
124
45
414 133
5%
Alternative Asset Management
495
522
408
1,079
1,200 900 600 300 0
100 75 50 25 0 (25)
Mutual Funds
37% 24% 29% 11%
0
3% (1%)
Asset Management
41% 16%
47
35
47% 73%
• Firm four-decade footprints - proven track record of growth & sustainability
• Trusted & preferred partner – client centric business model
429
404
300
41% 19%
89
120
158
40 22
61
75
60
FY12
FY13
FY14
FY15
0 Revenue % contribution of consolidated revenue
FY16
PBT
% contribution of consolidated PBT
3
Accelerated pace of growth • Four decades of prominent presence depicting – – value driven growth and; – long-term sustainability
Consistent performance amidst volatile markets 2,000
CAGR : 5 year Income : 13.5% , PAT : 18.1%, PAT before minority interest : 23.6%
450 1,685 1,403
1,600
• Q4 FY16 highlights –
1,200
− Revenue ` 475 Cr
800
− PBT ` 201 Cr
1,042 896
400
874
Expanding latitude year on year
400
350 300
331
1,007
2008 – 2016
250
175
183
210
FY12
FY13
FY14
Revenue (Rs Cr)
− ROE 17.4%
FY15
FY16
2003 – 2007
6
15.3%
5
14.6% 9.9%
3
International Expansion in advisory business
•
NBFC (Securities Backed Financing)
•
Alternative Asset Mgmt (Private Equity & Real Estate)
•
Broking (Debt & Commodity)
•
Institutional Equities (Research & Sales)
•
Asset Management (Mutual Fund)
9.5%
10.3%
4.32
•
Cross Border (M&A, ADR & GDR)
•
Broking (Equity)
2.44
2.33
5.08
FY11
2.3% FY12
12.0%
•
Wealth Management (Investment Advisory)
•
Financial Product Distribution – creation of retail investing culture
•
Investment Banking
5.4% 4.0%
5.3% 3.2%
3.5%
FY13
FY14
EPS (Rs/share)
1991 – 2002
8.0%
2.78
1.62 3.6%
20.0% 16.0%
6.6%
1 0
•
PAT (Rs Cr)
− ROA 6.1%
2
Asset Reconstruction
50 FY11
4
•
150
0
− EPS ` 1.44
NBFC (Real Estate Lending, Debt Trading and Corporate Financing)
200 121
100
− Net profit before minority interest ` 148 Cr
•
400
0.0% FY15
ROE (%)
FY16 ROA (%)
1973-1990
ROA = Net profit before minority interest / Average total assets
4
Delivering value
4,000 26.29
24.87
1,976 1,214
1,000
1,170 1,865
• Continued focus on maximizing shareholders’ return
1,803 1,814
2,000
FY12
FY13
Stock / Index
12-M
3-Y
JMFL
-8%
126%
CNX 500
-3%
38%
CNX Smallcap
-4%
50%
CNX Bank
-7%
22%
CNX Finance
-6%
25%
30
3,290 2,804
24.20
40 35
3,738
3,000
27.69
Stock performance vs. Indices 35.54
31.10
2,438
• Stock trading at a P/E of around 8.2x and a P/B of 1.1x
Augmenting value year-on-year
1,947 2,092
• Delivering consistent superior returns to shareholders -
25 20 15 10 5
0
0 FY11
FY14
FY15
Market Cap (Rs Cr)
FY16
Net Worth (Rs Cr)
Book Value (Rs/share)
Gross and Net gearing (x) 2.5
2.4 2.1
2.0
1.9
1.8
1.7
1.5 1.0
1.4
1.7
1.4
1.3 0.9
0.5
2.1
Conservative D/E depicting business strength, adequate cash cushion and strong business model
0.9
0.0 FY11
FY12
FY13
Gross Gearing (x)
Note
Stock/Index data per NSE as on 12/05/2016
FY14
FY15
FY16
Net Gearing (x)
5
Key features of consolidated financial performance
Net worth on March 2016 ` 2,804 Cr (March 2015 ` 2,438 Cr), Book value on March 2016 ` 35.54
Loan book on March 2016 at ` 7,214 Cr (March 2015 at ` 5,388 Cr)
Key Features
Average Daily Turnover as on March 2016 in the secondary market at ` 2,137 Cr (March 2015 ` 2,420 Cr)
Wealth Management AUM on March 2016 at ` 26,958 Cr (March 2015 ` 17,383 Cr)
Asset Reconstruction AUM on March 2016 at ` 9,820 Cr (March 2015 ` 8,398 Cr)
Alternative Asset Management AUM on March 2016 at ` 773 Cr (March 2015 ` 942 Cr)
Asset Management Quarterly Average AUM at ` 16,161 Cr (Q4 FY15 ` 12,231 Cr)
6
I : Yearly performance – FY16
7
Key features of FY16 Consolidated financial performance
Gross revenue ` 1,685 Cr (FY15 ` 1,403 Cr), up 20 %
Profit before tax ` 693 Cr (FY15 ` 517 Cr), up by 34 %
Key Features
Profit after tax and before minority interest ` 526 Cr (FY15 ` 379 Cr), up by 39%
Profit after tax ` 400 Cr (FY15 ` 331 Cr), up by 21 %
PAT Margin at 23.8 % (FY15 23.6 %)
Earning per share stood at ` 5.08 (FY15 ` 4.32)
Consolidated group RoE at 15.3 % (FY15 14.6%)
8
Results for FY16 (Consolidated) FY16
FY15
YoY
1,685
1,403
20%
Sub-brokerage
77
97
-21%
Employee cost
264
235
12%
Operating cost
118
115
3%
Finance cost
512
420
22%
Depreciation
20
18
12%
Profit before tax
693
517
34%
Profit after tax
470
361
30%
55
19
195%
526
379
39%
-125
-49
157%
400
331
21%
` Cr Gross Revenue
Share in profit of Associates Net profit before minority interest Minority interest Net Consolidated profit
9
Segment performance Segment revenue
FY16
FY15
YoY
495
522
-5%
1,079
806
34%
Alternative Asset Management
13
27
-53%
Asset Management
86
47
83%
194
139
39%
1,866
1,542
21%
181
139
31%
Total Revenue
1,685
1,403
20%
Segment PAT
FY16
FY15
YoY
54
85
-36%
315
217
45%
4
11
-66%
25
10
158%
2
8
-67%
400
331
21%
Investment Banking and Securities Business Fund Based Activities
Others Total Segment Revenue Less: Inter - segmental revenue
Investment Banking and Securities Business Fund Based Activities Alternative Asset Management Asset Management Others Total
10
II : Quarterly performance – Q4 FY16
11
Key features of Q4 FY16 consolidated financial performance
Gross revenue ` 475 Cr (Q3FY16 ` 426 Cr, Q4FY15 ` 393 Cr)
Profit before tax ` 201 Cr (Q3FY16 ` 178 Cr, Q4FY15 ` 158 Cr)
Key Features
Profit after tax and before minority interest ` 148 Cr (Q3FY16 ` 150 Cr, Q4FY15 ` 114 Cr)
Profit after tax ` 114 Cr (Q3FY16 ` 117 Cr, Q4FY15 ` 93 Cr)
PAT margin at 24.0 % (Q3FY16 27.5%, Q4FY15 23.7%)
Earning per share stood at ` 1.44 (Q3 FY16 1.49, Q4 FY15 1.21) (not annualised)
Consolidated group annualised RoE at 17.4% (Q3FY16 17.8%, Q4FY15 16.2%)
12
Consolidated financial performance – Quarter by Quarter Snapshot
Gross revenue (` ` Cr)
Profit before tax (` ` Cr) 475
500 377
400 300
393 367
383
401
250
426
201 200
266
150
200
100
100
50
0 Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
117
75
87
146
84
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
Q4FY16
EPS (` `) ( not annualised)
125 92
158 137
178
0
Q4FY16
Net consolidated profit (` ` Cr)
100
137
168
114
1.5 1.22
97
93
1.14
1.44
Q3FY16
Q4FY16
1.23
1.21 0.92
1.0
72
1.49
0.77
58
50 0.5 25 0 Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
Q4FY16
0.0 Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
13
Consolidated financial performance – Quarter by Quarter Snapshot
Book value per share (` `)
Net worth (` ` Cr) Cr 3,000 2,500
2,466 2,151
2,438
2,536
2,702
2,822
2,804
40 35
2,246
30
2,000
28
30
Q1FY15
Q2FY15
31
31
32
Q3FY15
Q4FY15
Q1FY16
34
36
36
Q3FY16
Q4FY16
25 20
1,500
15
1,000
10 500
5 0
0 Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
Q4FY16
Borrowings (` ` Cr) Cr
Debt equity 6,671
7,000 6,000 5,000
4,662
4,485
Q2FY16
4,618
4,721
5,032
5,422
2.4
2.5 2.2
5,638
2.0 2.0
4,000
1.5
3,000
1.0
1.9
1.9
Q3FY15
Q4FY15
2.0
2.0
2.0
Q1FY16
Q2FY16
Q3FY16
2,000 0.5
1,000 0
0.0 Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
Q3FY16
Q4FY16
Q1FY15
Q2FY15
Q4FY16
14
Results for Q4 FY16 (Consolidated ) Q4 FY16
Q3 FY16
QoQ
Q4 FY15
YoY
475
426
11%
393
21%
Sub-brokerage
18
20
-8%
25
-28%
Employee cost
71
64
12%
51
39%
Operating cost
40
25
58%
41
-3%
Finance cost
139
134
4%
113
24%
Depreciation
5
5
-2%
4
19%
Profit before tax
201
178
13%
158
27%
Profit after tax
143
117
22%
107
33%
5
33
-85%
7
-29%
Net profit before minority interest
148
150
-1%
114
30%
Minority interest
-34
-33
-5%
-21
64%
Net Consolidated profit
114
117
-3%
93
22%
` Cr Gross Revenue
Share in profit of Associates
15
Segment performance Segment revenue
Q4 FY16
Q3 FY16
QoQ
Q4 FY15
YoY
Investment Banking and Securities Business
143
109
32%
131
10%
Fund Based Activities
297
288
3%
245
21%
4
4
7%
8
-52%
Asset Management
23
24
-7%
13
71%
Others
51
17
205%
18
176%
518
441
17%
416
25%
43
15
189%
23
88%
475
426
11%
393
21%
Q4 FY16
Q3 FY16
QoQ
Q4 FY15
YoY
Investment Banking and Securities Business
18
5
271%
15
19%
Fund Based Activities
85
102
-17%
75
14%
Alternative Asset Management
1
1
-8%
1
2%
Asset Management
5
8
-34%
1
763%
Others
4
0
919%
1
259%
114
117
-3%
93
22%
Alternative Asset Management
Total Segment Revenue Less: Inter - segmental revenue Total Revenue Segment PAT
Total
16
III : Balance sheet highlights
17
Balance sheet highlights
Net worth on March 2016 ` 2,804 Cr (March 2015 ` 2,438 Cr)
Borrowings on March 2016 ` 6,671 Cr (March 2015 ` 4,721 Cr)
Balance Sheet Highlights
Free cash and cash equivalent on March 2016 ` 914 Cr (March 2015 ` 578 Cr)
Debt equity : Gross gearing 2.4x, Net gearing 2.1x
Balance sheet size on March 2016 ` 10,956 Cr (March 2015 ` 8,400 Cr)
Loan book on March 2016 ` 7,214 Cr (March 2015 ` 5,388 Cr)
CRISIL upgrades long term rating of JM Financial group companies to 'CRISIL AA/Stable‘ ICRA and India ratings have maintained long term rating of JM Financial group companies to AA/Stable‘ 18
Summary Balance sheet As at March 31, 2016
As at March 31, 2015
2,804
2,438
669
655
6,671
4,721
812
586
10,956
8,400
7,214
5,388
269
214
1,969
1,258
Arbitrage and trading book
316
359
Fixed assets
340
342
Other assets
848
839
10,956
8,400
` Cr Equity and Liabilities Shareholders’ funds Minority interest Borrowings Other liabilities and provisions TOTAL Assets Loan book Investment in associates Treasury fund
TOTAL
19
IV : Business update
20
Investment Banking business • Over four decades of leadership in M&A and Capital Markets • Strong track record of landmark M&A transactions • Pioneer in innovating capital market products • Wide & deep sectoral coverage both from a corporate finance & research perspective • BW Business World Magna Awards 2015 – “M&A Deal Maker of the Year” • Ranked as number 2 in the indian M & A league table for FY16 by Mergermarket
Key strength lies in innovative structuring and execution of complex, challenging deals and restructuring of corporate groups & businesses.
Strong long-term Indian Corporate relationships
Leadership positions in all product areas and unmatched market share for landmark transactions
Best-in-Class Execution Team with focus on client satisfaction
Won a number of awards and recognitions over the years for our advisory and execution capabilities. Awarded ‘Best Corporate and Institutional Bank –Domestic’ and ‘Best Equity House’ at the The Asset Triple A Country Awards.
21
Investment banking business Snapshot for Q4FY16
As BRLM for Qualified Institutional Placement by Suprajit Engineering Limited – Rs 150 crore
As financial advisor to Bain Capital for its investment in QuEST Global Services Pte Ltd
As Financial advisor and manager to the delisting offer made by Essar Oil Limited
As Sole financial advisor to Hotel Leelaventures Limited on the closure of the Leela, Goa to Medtube Group
As Sole financial advisor and merchant banker to Reliance Infrastructure Limited for their open offer to the shareholders of Pipavav Defence and Offshore Engineering Company Limited
As advisor and arranger for a Private Equity investment round for a leading healthcare distribution company
22
Wealth Management and Broking business Wealth Management
Broking business
Wealth AUM stands at ` 26,959 Cr with a team size of 53 wealth advisors as on March 2016
Worldwide institutional reach - dominant global & local institutional franchise
Presence in 7 major cities in India i.e. Mumbai, Delhi, Bangalore, Ahmedabad, Pune, Kolkata & Hyderabad
Institutional distribution strength - We cover 150 funds across regions
Intensely client-oriented approach, create customised long-term Asset Allocation strategy and provide them with unbiased investment solutions
Institutional Equities offices at Singapore and New York
Full service providers to clients across all products like Investment Banking, Corporate Finance etc.
Extensive research coverage of 179 companies
Focus on growing Discretionary Assets
Average daily turnover in Q4FY16 - Rs. 2,127 Cr, which includes cash segment of Rs. 591 Crs
Around 8,320 active IFDs Coverage of broking segment - 111 cities
Market Share on NSE in Q4FY16 – overall 0.64%, 2.83 % cash segment
23
Wealth Management and Broking business Average Daily Turnover (` ` Cr)
Equity Market Share on NSE (%)
3,000
6.0
2,500
5.0
2,000
4.0 1.22
0.95
0.84
0.94
0.93 1,500
1,847 1,766
3.0 1,624
1.06
0.79
0.69
2.74
2.88
0.78 0.78
0.76
0.64 0.61
0.81
0.66
0.62
2.64
2.74
2.74
0.51
0.80
1,536 1,352
1,000
1,221 1,015 1,005
2.0
1,056
2.54 500
2.43
3.00
2.83
1.0 481
349
370
414
573
568
555
555
591
0
0.0 FY11 FY12 FY13 FY14 FY15 Avg Cash (Rs. Cr)
Q2 Q3 Q4 Q1 FY16 FY16 FY16 FY16
Avg FAO (Rs. Cr)
FY11 FY12 FY13 FY14 FY15 Cash Market Share
Q1 Q2 Q3 Q4 FY16 FY16 FY16 FY16
FAO Market Share
Overall Market Share
Significant turnover in cash translating in higher returns 24
Securities Lending and Financing business • JM Financial Products Ltd. is the Non-Banking Finance Company (NBFC) of the JM Financial Group. The company enjoys the highest short-term credit rating of A1+ from CRISIL • During the year CRISIL reaffirmed the “CRISIL A1+” (highest grading) rating for the Commercial Paper program as well its “CRISIL AA/ Stable” rating for long term NCD issuances and bank loan rating
Securities Lending & Financing business
Lending / Financing to clients of traditional businesses
Investment Banking Clients
Wealth Clients
RE Clients
ARC Clients
• • • • •
Corporate Loans Structured loans Promoter loans Bridge loans Acquisition finance loans
• • • • • •
Loan against Property Loan against Security ESOP Funding IPO Financing Broker Funding Margin Trade Funding
• Overflow of loans from RE lending arm
Investment / Lending to new age Financial Technology related businesses
• Partnering with new age Fin tech platforms with 3-5 year view Investments
Lending
• Take minority stake with an ability to integrate with JM Financial platform over a period of time
• Partnering with new age Fin tech platforms for providing leverage to SME & Retail business at an insignificant customer acquisition cost, coupled with robust credit analysis & recovery mechanism
• Further need of capital post restructuring • Co-Investments in selective acquisitions
25
Commercial Real Estate Lending business
JM Financial Limited
50.01%
Vikram Pandit & Associates
The real estate financing arm of JM Financial Limited, looks at providing an integrated financial solution to real estate developers – Major focus on real estate project financing
Lending book has grown from INR 1,844 crs in the beginning of FY 2015-16 to ` 4,074 Cr till March 2016
49.99%
JM Financial Credit Solutions Limited
• Strong Balance sheet : Net worth / Owned fund of 1,136 Crore • JMFL and Vikram Pandit & Associates have created a true strategic partnership not a vanilla PE deal
• Book comprises of 40 clients – significant focus on repeat business • Most of the clients with over 25 years of experience in the industry
• Focus on Tier I markets – Mumbai, Bengaluru, Pune and Chennai − With loan disbursements of 50% in Mumbai, 24% Bengaluru, 15% Pune, 11% Chennai and others • 90% of the book is cashflow backed lending • 73% of the book is against residential projects
Prominent Relationships – Kalpataru, Wadhwa, RMZ, Embassy, Kanakia, Peninsula, Adarsh, Goel Ganga, Rajesh Lifespaces and Lodha amongst others
26
Highlights – Fund Based Activities Loan book (` `Cr)
Net Interest Margin (%)
10,000
10
8,000 6,000
4,856 3,816
4,000 2,000 0
5,388
4,067
2,421
2,227
1,395
1,840
2,325
2,543
5,492 1,980
6,118
6,550
2,845
3,512
8.0
1,586 2,151
8.3
8.1
8
2,137
4,413 2,531
9.1
7,214
6 5,628
5.1
5.4
7.7
6.2
4 2
3,967
Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Real Estate Capital Market
0 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16
Includes 116 Cr of IPO funding in Q3FY16
Gross NPA (%)
Capital Adequacy Ratio (%) 37.3
40
35.0
3 33.9
34.0
2.6
32.3 28.8
30 21.3
21.5
20
2.5
3 2.1 2 2 1
0.9
0.9
0.8
10 1 0
0.3
0.3
0 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16
Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16
27
Borrowing profile • Capital Adequacy Ratio : 28.8% • Long term debt rating:
Business expertise translating into superior returns on funds deployed 8,000
6,671
7,000
CRISIL AA STABLE
6,000
ICRA AA STABLE
5,000
India Ratings AA STABLE
12%
10.11%
4,000
10.85% 4,196 8.17% 3,347
3,122
10% 11.00% 10.25% 4,721
9.3%
8% 6%
2,987
3,000
4%
2,000
• Short term debt rating: CRISIL A1+
2%
1,000 0
0% FY11
ICRA A1+ • Business strength coupled with visible future growth & long-term sustainability facilitate minimal debt servicing risk
FY12
FY13
FY14
Borrowing (Rs. Cr)
FY15
FY16
Cost of funds
March 16 - Borrowing Breakup (%) - ` 6,671 Cr
Long Term
− review the ALM profile of the group
Non convertible debentures 399 Cr 8%
− advise on diversifying borrowings based on asset maturity profiles
Commercial paper 3,060 Cr 46%
Non convertible debentures 1,192 Cr 18% Short term loan from banks 397 Cr 6%
March 15- Borrowing Breakup (%) - ` 4,721 Cr
Long Term
Term loans 1,471 Cr 22%
Short Term • Group Borrowing & ALM committee meets regularly to :
Borrowing vs. Loan book translating into a NIM of 7.7%
Others 551 Cr 8%
Others 360 Cr 8%
Term loan from banks 170 Cr 4%
Short Term
Short term loan from banks 128 Cr 3% Commercial Paper 3,666 Cr 77%
Near term focus on diversifying sources of funds and lenders’ profiles
28
Asset Reconstruction • RBI registered ARC engaged in the business of Distressed Assets management in India • Highest capitalized private sector ARC in the Indian industry • Current AUM of ` 9,820 Cr comprising Corporate, SME and Retail portfolios
Significant potential upside in the asset reconstruction business
AUM over years 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
8,398
9,820
1,600 1,400
1,461
1,200 1,227 3,647 1,083 599
758
179 FY11
205
340
FY12
FY13
1,000 800 600
584
FY14
200 0
– better due diligence by ARCs
FY16
– speedy recovery due to early involvement of ARCs
ARC's AUM (Rs. Cr) JM's share in ARC's AUM (Rs. Cr)
• In-house legal expertise and synergies from group wide professional expertise
• Recent amendments expected to pave way for better & quicker returns – – improve quality of sell-down by banks at proper valuation
400
FY15
• RBI’s concern over bank NPA’s expected to increase the sell-down of distressed assets to ARCs
Building robust asset base 6,000
1,200 5,028
5,000
1,000 974
4,000
800
2,639
3,000
1,488
2,000 1,000
478
0
113 FY11
477
223 FY12
FY13
600
Hotel Leela Resolution – Phase I
400
Concluded sale of Hotel Leela Goa for ` 725 Cr. 69% of class A SRs along with yield and incentive fees.
200
276
241
240
86
0 FY14
FY15
Breakthrough Hotel Leela deal
FY16
Assets Acquired by ARC (Rs. Cr) JM's share in acquisition (Rs. Cr)
29
Asset Management Real Estate Significant increase in AUM – CAGR 22.3% •
• •
India focused fund with investments in commercial, residential, retail and hospitality sectors Approx. 45% funds raised from international investors AUM as on March 31, 2016 – ` 233 Cr
•
No. of investments: 13
•
No. of Exits: 5 full and 2 part
•
Fully drawn down & invested
•
Amount distributed till date ` 202 Cr.
• Quarterly Average AUM (QAAUM): `16,161 Cr
18,000 16,161 15,858 15,868
16,000
• Market Share: 1.19% 6,117 12,000
11,353
5,441 6,081
11,676
Reach • Servicing and investor base of around 140,656 through 17 branches and 81 Investor Service Centres
10,000
8,000
6,975 6,654
•
India focused long term PE fund - providing growth capital to fast growing, primarily unlisted companies
•
Approx. 85% of funds raised from International investors
•
AUM as on March 31, 2016 ` 540 Cr
•
No. of investments: 13
•
No. of Exits: 5 full
•
Fully drawn down & invested
•
Amount distributed till date ` 682 Cr
• Rank (QAAUM): 17 among 43 Mutual Funds
14,000
5,262
Private Equity
As on March 31, 2016
6,283
6,585 6,561
6,000 9,741 4,000
5,104 5,555 6,031 6,103
6,414 4,378
2,000 1,550 0
10,42710,080
• 17 schemes categorized under – Long Term Debt, Short Term Debt, Balance, Equity Arbitrage and Equity
728
554
459
FY11 FY12 FY13 FY14 FY15 Equity (Rs. Cr)
Q1 Q2 Q3 Q4 FY16 FY16 FY16 FY16 Debt (Rs. Cr)
• One of the well capitalized and profitable AMC in the industry Note: 1.
Equity AUM for FY15 and Q4 FY16 include arbitrage fund of Rs. 3,084 and Rs.2,966 Cr resp
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Effective Risk Management Framework • Risk management given paramount importance
1
Robust risk management architecture encompassing independent identification, measurement and management of risk across various businesses of the Group
2
Effective systems, processes and adequate review mechanism to actively monitor, manage and mitigate risks
3
Monthly risk meetings of all businesses with Group Risk Committee
4
Report of top risks and risk event update periodically placed before the Board of Directors
5
Independent Internal Audit firms appointed to review and report on the business processes and policies in all operating companies of the Group
• Risk management embedded in the business processes • Effective and adequate internal controls
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Community Engagement • At JM Financial, CSR extends beyond a statutory obligation • Firm belief in strengthening and uplifting the lesser privileged communities
• JM Financial Foundation drives our community engagement initiatives that focus on – – Education – special focus on girl child education – Healthcare – Entrepreneurship promotion – Vocational Training – Women empowerment – Disaster Relief • JM Financial Foundation Walkathon – – annual event where our clients & employees pledge their support for the underprivileged – fund-raiser inviting contributions towards the various causes supported by JM Financial Foundation • Employee volunteering at JM Financial – – Sparsh - Employees aid the lesser privileged aged members of society and mentor children – Project Drishti - contributing glossy magazines used for preparing reading and learning material in Braille – Joy of Giving week – Joy boxes, Blood donation camps & Paraplegic Foundation
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Key Takeaways
Strong presence for over four decades – proven track record of growth & sustainability
Client centric business model – Strong focus on long-term corporate relationships
Value driven growth – visible future growth roadmap, increased focus on Real Estate Lending, Asset Reconstruction and Alternative Asset Management
Experienced & committed Management team - ensures future growth at minimal risk
Efficient & motivated talent pool – source of our competitive edge
Positive capital market outlook – strategically placed to benefit from every upswing
Conservative gearing backed with adequate cash facilitates
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Appendix
The content of this document are for information purposes only and does not construe to be any investment advice. Any action taken by you on the basis of the information contained herein is your responsibility alone and JM Financial Limited (hereinafter referred as JM Financial) and its subsidiaries or their employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have taken due care regarding authenticity of the information contained herein, but do not represent that it is accurate or complete in all respect. JM Financial or any of its subsidiaries or associates or their employees shall not in any way be responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this document. The recipients of this document should rely on their own judgement while taking any action based on the information provided herein.
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JM Financial Limited its Subsidiaries & Associates
JM Financial Limited Core Investment Holding Co. 100%
91%
JM Financial JM Financial Institutional Services Ltd. Securities Ltd. 9% (Merchant Banking & Institutional equity)
(Stock Broking & Investment Advisory)
53.5%
JM Financial Asset Management Ltd. (Mutual Fund Management)
90%
JM Financial Products Ltd.
50.01%
JM Financial Overseas Holdings Pvt. Ltd.
JM Financial Commtrade Ltd
(Mauritius Investment Advisor)
(Commodity Broking)
100%
JM Financial Securities Inc. (USA)
60%
40%
Astute Investments
JM Financial Investment Managers Ltd
Infinite India Investment Mgmt Ltd.
JM Financial Properties and Holdings Ltd.
(NBFC)
(Asset Reconstruction)
(Private Equity Asset Mgmt.)
(Real Estate Asset Mgmt)
(Property Holding)
(NBFC)
100%
100%
25%
100%
JM Financial Capital Limited
CR Retails Malls (India) Ltd. (Rental of Property)
JM Financial Insurance Broking Pvt Ltd
JM Financial Trustee Company Pvt. Ltd (Trusteeship)
Holding Co
100%
JM Financial Singapore Pte Ltd Singapore Corporate Finance Advisory & Financial Advisory)
100%
JM Financial Asset Reconstruction Co. Pvt. Ltd.
4.2% 100%
100%
JM Financial Credit Solutions Limited
4.2% 100%
100%
50%
SEBI Regulated RBI Regulated Companies outside India Others Note
Includes Equity + CCPS
JM Financial Limited – Shareholding Pattern Share holding pattern – as on March 31, 2016
Name of the Shareholder
% Shareholding
Public holding of more than 1% of total number of shares – as on March 31, 2016
Name of the Shareholder
% Shareholding
Promoter & Promoter Group
65.67%
Morgan Stanley Asia (Singapore) Pte
6.33%
Foreign Institutional Investors
13.64%
Valiant Mauritius Partners Ltd & Associates
3.96%
Mutual funds / UTI
3.13%
IDFC Premier Equity Fund
2.99%
Financial Institutions / Banks
0.01%
Azim Hasham Premji
2.77%
Non-Institutions
17.55%
Vikram Shankar Pandit
1.48%
Public Shareholding
34.33%
Total
17.53%
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