Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Reliance Nippon Life Asset Management — Q3 FY19 Earnings Presentation
35 slides from Nippon Life India Asset Management's earnings presentation, Jan 23, 2019
Slide 1: Investor Presentation cover letter to exchanges
ReLlt\NCe NIPPON LIFE ASSET MANAGEMENT LTD ❖ Nippon Life Company January 23, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 51h Floor, Dalal Street, Fort, Plot No. C/1 , G Block, Mumbai 400 001 Sandra Kurla Complex, BSE Scrip Code: 540767 Sandra (
Slide 2: Investor Presentation - Q3 FY19
NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD Investor Presentation - Q3 FY19 1
Slide 3: RNAM Snapshot
NIPPON LIFE ASSET ReUANce MANAGEMENT LTD RNAM Snapshot 2
Slide 4: Key highlights
NIPPON LIFE ASSET Key highlights ReUANce MANAGEMENT LTD Board Declared Interim Dividend 1st in terms of Retail Annualized SIP Book of Assets at INR 830 bn INR 101 bn of INR 3 Per Share Further Fund Offer 3 of Holding one of the Digital Purchases up CPSE ETF Raised Highest B-30 assets INR170 bn INR42
Slide 5: Snapshot
Snapshot ReUANce NIPPON LIFE ASSET MANAGEMENT LTD RNAM is one of largest asset manager in India, with 23 years of track record RNAM AUM as of Dec'l8 INR 4.14 tn Mutual Funds Managed Accounts International* INR 2,272 bn INR 1,840 bn INR 31 bn Trusted Asset Manager - Holding Fund Mandates from EPFO ES
Slide 6: RNAM Quarterly Performance
NIPPON LIFE ASSET ReUANce MANAGEMENT LTD RNAM Quarterly Performance 5
Slide 7: Leading asset management player: RNAM AUM
NIPPON LIFE ASSET Leading asset management player ReUANce MANAGEMENT LTD RNAM AUM (INR Bn) ■ MF ■ Pension ■ Managed ■ Offshore 28 3,964 27 4,074 27 4,048 4,144 30 3,878 31 30 32 33 34 34 1,643 1,696 1,750 1,806 1,572 Dec'l7 Mar'l8 Jun'l8 Sep'l8 Dec'l8 RNAM AUM one of the highest in Industry - INR ~4
Slide 8: Leading asset management player: RMF QAAUM
NIPPON LIFE ASSET Leading asset management player ReUANce MANAGEMENT LTD RMF QAAUM (INR Bn) 2,436 2,449 2,404 2,448 2,363 5% 5% 5% 5% 7% Dec'l7 Mar'l8 Jun'l8 Sep'l8 Dec'l8 ■ Equity ■ Debt ■ Liquid ■ ETFs Composition of Equity Assets Increased by 400 bps YoY 7
Slide 9: Equity Assets (Incl. ETF)
NIPPON LIFE ASSET Equity Assets (Incl. ETF) ReUANce MANAGEMENT LTD Equity QAAUM (INR bn) Dec'l7 Mar'lB Jun'lB Sep'lB Dec'lB RMF Equity Assets grew by 12% YoY RMF Folio Count (mn) Dec'l7 Mar'lB Jun'lB Sep'lB Dec'lB Added 1.2 mn folios in last 12 months 8
Slide 10: Focus on Retail & Small towns
NIPPON LIFE ASSET Focus on Retail & Small towns ReUANce MANAGEMENT LTD Retail MAAUM (INR bn) Dec'l7 Mar'l8 Jun'l8 Sep'l8 Dec'l8 Highest Retail Assets in the Industry Source: AMFI 9
Slide 11: Higher Contribution from Retail Assets
NIPPON LIFE ASSET Higher Contribution from Retail Assets ReUANce MANAGEMENT LTD Retail have higher share of Equity Assets Retail AAUM growth (INR bn) Retail AAUM / Total AAUM (%) RMF 120 RMF 35% Industry SBI 95 HDFC Birla 76 Birla HDFC 50 SBI ICICI 37 ICICI RMF posted highest Retail AUM growth year
Slide 12: Beyond 30 cities (B-30) Contribution
NIPPON LIFE ASSET Beyond 30 cities (B-30) Contribution ReUANce MANAGEMENT LTD Higher AUM % sourced from B-30 locations as compared to Industry - - B-30 AAUM / Total AAUM RMF 18% Industry 15% B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence Source: AMFI 11
Slide 13: Systematic Investment Plan - Long & Stable Inflows
Systemaffc Investment Plan - Long & Stable Inflows ReUANce NIPPON LIFE ASSET MANAGEMENT LTD SIP Monthly Flows 9.00 3.5 8.00 3.0 7.00 2.5 6.00 2.0 5.00 4.00 1.5 3.00 1.0 2.00 0.5 1.00 - - Dec'l7 Mar'l8 Jun'l8 Sep'l8 Dec'l8 - SIP Book (INR bn) - SIP Count (Mn) Annualized SIP book of ~ INR 101 bn (+30%
Slide 14: Strong Distribution
NIPPON LIFE ASSET Strong Distribution ReUANce MANAGEMENT LTD Empaneled ~ 1,400 New Distributors in Q3 FY19; total base at over 72,500 Banks cffiba nk Deutsche Bank [Z] /CIC/Bank Standard Chartered ~ HDFC BANK I J, AXIS BANK National - Distributors KA RV"Y III [• H DFC securities Alternate (incl. PSU
Slide 15: Leveraging Partnership with IFA
NIPPON LIFE ASSET Leveraging Partnership wHh IFA ReUANce MANAGEMENT LTD Distribution Mix* Growing IFA Base ■ Independent Financial Advisors IFA AUM (Rs Bn) ■ Banking Distributors ■ National Distributors Jun'18 Sep'18 Dec'18 *Excluding Direct AUM As on Dec 18 Derisked Distribution Model No Single dis
Slide 16: Digital is the way ahead
- Digital is the way ahead ReUANCe NIPPON LIFE ASSET MANAGEMENT LTD Digital Purchases ('000) 03 FY19 273 03 FY18 160 Introduced Video Based KYC solutions for New Investor On-boarding Customer enters rn Completes Video Enters Customer Visits Investment details Customer www.reliancemutual.com PAN Numb
Slide 17: Digital Ecosystem
NIPPON LIFE ASSET Digital Ecosystem ReUANCe MANAGEMENT LTD COLLABORATE COMMUNICATE With Partners With Investors With Franchisees Traditional Easy to navigate Website/App for Partners Prudent J CAPITAi BAJAJ ~ [DD "$" \ Angel Broking' ~e,Ykell'~!'t...,,,lliU<I Digital &r-··- I:!. ···. ~~ I .1 ~~.-...
Slide 18: ETF
ETF ReUANce NIPPON LIFE ASSET MANAGEMENT LTD Large ETFs product suite 17 years 56% ---17% Experience Share of folios Market Share Successfully completed the Further Fund Offer 3 of CPSE ETF Issue Size of INR 170 bn and an overwhelming response of INR 312 bn Participation across various categor
Slide 19: International Business
International Business ReUANce NIPPON LIFE ASSET MANAGEMENT LTD Managed & Advisory AUM - INR 87 Bn Representative Subsidiaries Office Singapore Mauritius Dubai RAMS Equities Portfolio Fund - UCITS Cohesion Best Idea's Fund - SIF* Distribution Service Reliance Emergent Center IMSF - Equity Opp. Fund
Slide 20: Alternate Investment Fund (AIF)
Alternate Investment Fund (Alf) ReUANce NIPPON LIFE ASSET MANAGEMENT LTD At present offer Category II & Category Ill Alfs High Yield Debt: Reliance Yield Maximiser AIF Series, Reliance Yield Plus AIF Equity: Reliance Equity Opportunities AIF Series Sector Agnostic Debt: Reliance Yield Opport
Slide 21: Brand Initiatives
NIPPON LIFE ASSET Brand lnitiaffves ReUANce MANAGEMENT LTD Dussehra Festival Diwali Inflation over time deptetes your idle money lying in the safe . This Diwoli ~ give I t a chance to beat inflation . #VehDi woli,.,,.u·t-uolFundWoli 'Happy 'Duvall. Mutual Fund Investments are subiect to market risks
Slide 22: Leaders in Investor Education
NIPPON LIFE ASSET Leaders in Investor Educaflon ReUANce MANAGEMENT LTD EDGE Learning Academy: Oct 18 to Dec 18 -------------------------- Investor Education Unique Locations 21
Slide 23: Investor Education
- NIPPON LIFE ASSET Investor Education ReUANCe MANAGEMENT LTD Ferozepur Davanagere Kangra Belgaum Increasing investor awareness in small cities and towns 22
Slide 24: Regulatory Update
NIPPON LIFE ASSET ReUANce MANAGEMENT LTD Regulatory Update 23
Slide 25: Regulatory Update
NIPPON LIFE ASSET Regulatory Update ReUANce MANAGEMENT LTD Circular Issued with effect from October 22, 2018 No Upfront Commission on Lumpsum investment Upfront Commission allowed only on SIP from New investors All Scheme related expenses to be paid from Scheme Only, and not from AMC Incenti
Slide 26: Financial Overview
NIPPON LIFE ASSET ReUANce MANAGEMENT LTD Financial Overview 25
Slide 27: IND AS Transition
NIPPON LIFE ASSET ReUANce MANAGEMENT LTD IND AS Transition RNAM has adopted Indian Accounting Standards (IND AS) with effect from 1st April 2018 Results of 03 FY19 are prepared as per IND AS requirements Accordingly previous year quarter figures have been restated 26
Slide 28: IND AS Transition
NIPPON LIFE ASSET IND AS Transition ReUANce MANAGEMENT LTD • Key Changes Impact IGAAP INDAS Management Revenue No change No Change Fees I I I I I Investment Other Income Cost Basis Fair Value Income I I I I I Distribution Expense No Change No Change Expense I I I II Black - Scholes ESOP Expense Intr
Slide 29: Financial Summary - As per IND AS (9M)
NIPPON LIFE ASSET Financial Summary- As per IND AS ReUANce MANAGEMENT LTD Consolidated INR in Mn. Particulars 9M FY19 9M FY18 Revenue from operations 11,354 11,537 Operating Expenditure 7,642 8,065 Employee benefits expense 2,167 1,754 Other Expenses 5,211 6,042 Depreciation & Finance Charges 264 26
Slide 30: Financial Summary - As per IND AS (Q3)
NIPPON LIFE ASSET Financial Summary- As per IND AS ReUANce MANAGEMENT LTD Consolidated INR in Mn. Particulars Q3 FY19 Q3 FY18 Revenue from operations 3,499 3,990 Operating Expenditure 2,407 2,806 Employee benefits expense 753 598 Other Expenses 1,564 2,126 Depreciation & Finance Charges 90 82 Core O
Slide 31: Reconciliation of consolidated profit with previous GAAP
NIPPON LIFE ASSET Reconciliation of consolidated profit with previous GAAP ReUANce MANAGEMENT LTD INR in Mn. Profit Reconciliation for the period ended Sept 30, 2017 Q3 FY18 9M FY18 Net profit after tax as reported under previous GAAP 1,302 3,604 Adiustrnent increasing/(decreasing) net profit after
Slide 32: Historical Trends (As Per Indian GAAP)
NIPPON LIFE ASSET Historical Trends (As Per Indian GAAP) ReUANce MANAGEMENT LTD ~ . Revenues Management Fees - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - ~ INRbn INRbn 15.9 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 PAT INRbn INRbn 7.3 FY14 FY15 FY16 FY17 FY18 31
Slide 33: Consistent ROE and Dividends
NIPPON LIFE ASSET Consistent ROE and Dividends ReUANce MANAGEMENT LTD Consistent ROE High Dividend Payout Return on Equity Dividend Payout 4.42 24% 24% 25% 2.98 2.98 FY 16 FY 17 FY 18 FY 16 FY 17 FY 18** Board Declared Interim Dividend of INR 3 Per Share on Jan 22 2019 85% of FY18 Earnings shared wi
Slide 34: Disclaimer
NIPPON LIFE ASSET Disclaimer ReUANce MANAGEMENT LTD 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,
Slide 35: Thank you for your time.
NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD Thank you for your time. 34
Reliance Nippon Life Asset Management — Q3 FY19 Earnings Presentation on 6ix