Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q1 FY2020 Earnings Presentation
41 slides from Nippon Life India Asset Management's earnings presentation, July 2019
Slide 1: Investor Presentation Q1 FY20
NIPPON LIFE ASSET RELIANCE MANAGEMENT LTD mM Nippon Life Company Investor Presentation QI FY20
Slide 2: Key Highlights
Key Highlights AUM One of the largest AMC's in India - Managing AUM of INR 4.31 tn Profit Net profit of INR 1,254 mn for Q1 FY20 grew by 13% AIF To launch Indo-Japan technology fund, announced during Osaka G20 summit Launched first Indian ETF in Australia with ETF Securities Australia for attracting
Slide 3: RNAM Snapshot
RNAM Snapshot NIPPON LIFE ASSET 3 RN Se ANAGEMENT LID ® Nippon Life Company ,.. , Szrce Ca —_
Slide 4: Snapshot
Snapshot RNAM is one of largest asset manager in India, with 24 years of track record RNAM AUM as of Jun’19 INR 4.31 tn Mutual Funds Managed Accounts Tareeaeliceyarel| INR 2,025 bn INR 2,251 bn INR 31 bn* Advisory INR 54 bn Trusted Asset Manager - Holding Fund Mandates from EPFO : ESIC tee PFRDA eee
Slide 5: RNAM Quarterly Performance
RNAM Quarterly Performance NIPPON LIFE ASSET 5 BAe A NAGEMENT LTD ® Nippon Life Company linea Ga —_
Slide 6: Leading asset management player
Leading asset management player RNAM AUM (INR Bn) m MF mPension mManaged_ sm Offshore 4,074 4,048 4,144 4,221 4,307 31 31 31 34 38 34 ies 2,025 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 RNAM AUM one of the highest in Industry - INR 4.31 Tn MF contributes 47% of overall AUM AUM: End of Period Asset Under Ma
Slide 7: Leading asset management player
Leading asset management player RMF QAAUM (INR Bn) 2,404 2,448 2,363 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 mEquity mDebt mliquid m ETFs Equity now contributes 42% of Total AUM eLI/ANCe NIPPON LIFE ASSET QAAUM: Quarterly Average Assets under Management 7 eed MANAGEMENT LT i i SENT Ete Nippon Life Compan
Slide 8: Equity & Fixed Income Assets
Equity & Fixed Income Assets Equity (Incl. ETF) QAAUM (INR bn) 1,157 970 1,008 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 RMF Equity Assets (incl. ETF) grew by 19% YoY Fixed Income QAAUM (INR bn) 1,391 1,399 1,292 12M 361 463 1,022 455 432 RKY/ 1030 936 837 779 685 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 mDebt m
Slide 9: Focus on Retail & Small towns
Focus on Retail & Small towns Retail MAAUM (INR bn) Retail AAUM / Total AAUM (%) Industry 26% HDFC 24% 899 863 837 830 irl % 780 Birla 22% SBI 19% ICICI 19% Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 Higher composition of Retail Assets in AUM at 40% V/S Industry 26% NIPPON LIFE ASSET Source: AMFI 9 RELIANCE
Slide 10: Beyond cities (B-30) Contribution
Beyond 30 cities (B-30) Contribution Higher AUM % sourced from B-30 locations as compared to Industry B-30 AAUM / Total AAUM (%) Industry 16 B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence Source: AMFI NIPPON LIFE ASSET 10 RELIANCE i i MANAGEMENT LTD Nip
Slide 11: City wise break up of AUM
City wise break up of AUM 15% 16% 28% 22% 21% RMF HDFC Birla SBI ICICI mTop 5 Cities mw Next 10 Cities m Next 20 Cities m Next 75 Cities m Others RMF has 28% of AUM from Beyond Top 15 cities highest among Top 5 AMC's NIPPON LIFE ASSET 1 ee ANAGEMENT LID & Nippon Life Company... vanre onvaenRlionce C
Slide 12: 10.0 3.5 9.00 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 4.00 3.00 1.0
10.0 0 3.5 9.00 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 4.00 3.00 1.0 2.00 0.5 1.00 - - 12
Slide 13: Unique Investors
Unique Investors Unique Investors Count (mn)* 479 462 474 4.46 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 Unique Investor Base has Increased by 8% YoY * Based on PAN basis NIPPON LIFE ASSET 13 RELIANCE : 5 eee Ete Nippon Life Company... venture between Reliance Capital & Nippon Life Group
Slide 14: Distribution
Distribution NIPPON LIFE ASSET 14 AS MANAGEMENT LTD & Nippon Life Company ST eodiih Broun
Slide 15: Strong Distribution
Strong Distribution Empaneled over 1,000 New Distributors in Q1 FY20; total base at ~ 74,500 Banks citibank Deutsche Bank icici Bank Standard Q&@ Chartered So EEE Avene National Distributors Gx=D OGak KARVY|I| SEER Alternate (incl. PSU banks) |. sites efear @ r 9] b RBLBANK Bank of India IDBI BANK I
Slide 16: Leveraging Partnership with IFA
Leveraging Partnership with IFA = Independent Financial Advisors IFA AUM (INR Bn) = Banking Distributors National Distributors 622 514 June'l7 June'l8 June'l9 *Excluding Direct AUM As on June’l9 Derisked Distribution Model No Single distributor contributes more than 5.4% of AUM End of Period AUM, Ca
Slide 17: Digital Business — Driving on Innovation
Digital Business — Driving on Innovation Digital Purchases’ (’000) 391 195 Growth 101% QI 2018 -'19 Ql 2019 -'20 a Digital contribute 41% of total purchase transactions for Ql FY20 a Digital purchases in Q] FY20 more than 2X YoY a RNAM among the first AMCs to launch e-NACH mandate in June 2019 NIPPO
Slide 18: With Partners With Investors
With Partners With Investors 18
Slide 19: Other Business
Other Business NIPPON LIFE ASSET 19 RSA manacement ito ® Nippon Life Company ‘Sites Sah —_
Slide 20: Alternate Investment Fund (AIF)
Alternate Investment Fund (AIF) a At Present Offer Category Il & Category Ill AIFs * Equity: Reliance Equity Opportunities AIF Series * Credit: Reliance Yield Opportunities AIF = Real Estate: Reliance Yield Maximiser AIF Series, Reliance Yield Plus AIF Series a Raised Commitments of approx. INR 26 b
Slide 21: Indo Japan Emerging Technology & Innovation Fund
Indo Japan Emerging Technology & Innovation Fund a Japan and India committed to strengthen industrial competitiveness in both countries by creating funds to invest in India’s fast-growing start-ups a RNAM (as a General Partner) signed letter of intent along with Limited Partners: Nippon Life, Mizuho
Slide 22: ETF - Future Ready
ETF - Future Ready Experience Only AMC with 17 years of experience in managing ETFs Innovator in Gold ETFs & Money Market ETFs First AMC to launch ETF jointly in partnership with GOI as a part of Innovators divestment program Launched ETFS Reliance India Nifty 50 ETF in Australia in June 2019 Larges
Slide 23: Offshore Business
Offshore Business Managed & Advise AUM of over INR 84.5 Bn Representative Office Subsidiaries RAMS Equities Portfolio Fund — UCITS Reliance Emergent Distribution Service RAMS Investment Unit Trust — IFIF India Fund Center Cohesion Best Idea’s Fund — SIF* across Middle East IMSF — Equity Opp. Fund Fe
Slide 24: Global Presence
Global Presence Mauritius . @ Strategic Partnership @ Local - Distributor Launched - ETFS Reliance India Nifty 50 ETF in Australia RELIANCE [Aenean 24 MANAGEMENT LTD Nippon Life Company Joint Venture between Reliance Copitel & Nippon Life Group
Slide 25: Other Initiatives
Other Initiatives NIPPON LIFE ASSET 25 SUNS manacement ro ® Nippon Life Company ‘Sites Sah —_
Slide 26: Brand Initiatives
Brand Initiatives Constitution of Investing #PowerInPortfolio NIPPON LIFE ASSET 26 BRASS manacement Lto Portola so snorg. nce comes akong! & Nippon Life Company 21 vanure tween Reliance Copel & Nippon Life Group
Slide 27: Investor awareness programs
162 T-30 Programs 69 Programs 22 Cities B-30 8,336 Investors 93 Programs 59 Towns 27
Slide 28: About Nippon Life
About Nippon Life NIPPON LIFE ASSET 28 AS MANAGEMENT LTD & Nippon Life Company ST eodiih Broun
Slide 29: Key Figures
Key Figures 18.4% 13.1% 9.6% 9.0% 7.5% 2 3 4 5 29
Slide 30: Nippon Life Group
Nippon Life Group Nippon Life Domestic Insurance Business Asset Management Business Overseas Insurance Business Mitsui Life MLC Life Insurance Nissay Asset Management (82.6%) (80.0%) Revenues from insurance and (100.0%) Revenues from insurance and AUM (2017/3): $98.4bn reinsurance premiums (FY2017):
Slide 31: Deal Timelines
Deal Timelines NIPPON LIFE ASSET 31 AS MANAGEMENT LTD & Nippon Life Company re . i
Slide 32: Timelines
Timelines ~. ) 4| Nippon life Insurance signs Binding Definitive agreement with May 23"? 2019 Reliance Capital Limited to increase stake in RNAM upto 75% Sale of 7.89 % holding in RNAM by Reliance Capital Limited under May 27" 2019 First Offer for Sale June 14" 2019 Sale of 2.86% holding in RNAM by
Slide 33: Financial Overview
Financial Overview NIPPON LIFE ASSET 3 RELIANCE i i 3 MANAGEMENT LTD Nippon Life Company Joint Venture between Reliance Copitel & Nippon Life Group
Slide 34: Adoption of Ind AS - Leases
Adoption of Ind AS 116 - Leases Background Q Ind AS 116 - Leases has come into effect from April 1,2019 Q Eliminates the classification of leases between operating and finance lease Q Leases are required to be initially recognized * as a lease liability for the obligation to make payments * as a rig
Slide 35: Financial Summary- As per IND AS
Financial Summary- As per IND AS Consolidated INR in Mn. pParticvlors co Revenue from Operations 3,251 3,945 Operating Expenditure 1,799 2,617 Fee & Commission Expenses 252 666 Employee benefits expense 825 677 Finance cost 7 - Other Expenses 629 1,186 Depreciation 76 88 Core Operating Profit 1,452
Slide 36: Dividends
Dividends Return on Equity of 19% in FY19 Earnings Per Share (INR) Dividend Payout (INR Bn) FY 18 FY 16 FY 17 FY 18 Board Declared Second Interim Dividend of INR 3 Per Share on Apr 29", 2019 91% of FY19 Earnings shared with Shareholders Paid cumulative dividend of INR 20+bn in last 6 financial years
Slide 37: Board Of Directors
Board Of Directors NIPPON LIFE ASSET 37 SASSI MANAGEMENT LTD ® Nippon Life Company ————— |
Slide 38: Profile of Board Members
Profile of Board Members Mr. Kanu Doshi (Independent Director) Dean - Finance, at Welingkar Institute of Management, Mumbai Mr. S. C. Tripathi (Independent Director) Held several senior level posts including Principal Secretary, Finance and Industry in Govt. of UP, Joint Secretary (Economic Affairs)
Slide 39: Profile of Board Members
Profile of Board Members Mr. Minoru Kimura (Associate Director) Executive Officer, Head of Asia Pacific at Nippon Life Insurance Company Mr. Akira Shibata (Associate Director) General Manager / Global Business Planning Department at Nippon Life Insurance Company Mr. Sundeep Sikka (Associate Director
Slide 40: Disclaimer
Disclaimer This presentation does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer, or a solicitation of any offer, to purchase or sell any securities under the Companies Act, 2013 and the rules made thereunder, the S
Slide 41: Thank you for your time
NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD ~ Nippon Life Company Thank you for your time.
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