Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC

Hdfc Asset Management — Q3 FY2019 Earnings Presentation

26 slides from Hdfc Asset Management's earnings presentation, January 2019

  1. Slide 1: HDFC Asset Management Company Limited Q3 FY18-19

    HDFC Asset Management Company Limited Q3 FY18-19 1

  2. Slide 2: Industry - AUM and Net Sales

    Industry - AUM and Net Sales 34% 35% 36% 44% 43% 44% 45% 22.9 21.4 22.0 1.1 21.3 0.8 1.0 Mar-14 to Dec-18 CAGR: 0.8 Overall: 24%; Equity: 40%; Debt: 9%; Liquid: 29% 17.5 2.9 3.4 3.9 4.5 0.5 3.1 12.3 8.3 8.0 7.3 7.0 10.8 0.2 AUM (₹ trn) 0.2 2.0 1.6 7.6 5.3 5.8 9.4 9.2 9.8 10.2 6.3 3.7 4.3 Mar-15 Mar-

  3. Slide 3: Individual / Institutional MAAUM, SIP Flows, B-15/B30

    Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors(1)(2)(3) SIP Flows(1) MAAUM of B-15/B-30(1)(2) 47.2 54.8 66.1 70.9 77.5 79.8 13.5 18.8 21.1 24.4 25.4 16% 16% 17% 19% 15% 15% 41.4 10.1 11.3 MAAUM in ₹ bn (SIP contribution in ₹ bn) B15 B30 80 (MAAUM ₹ trn) 77 20,743

  4. Slide 4: HDFC AMC at a glance

    HDFC AMC at a glance 48% Equity-Oriented Assets Assets Under Management(1) 52% Non-Equity Oriented Assets ₹ 1,580 bn ₹ 1,710 bn ₹ 3,291 bn US$ 22.7 bn US$ 24.5 bn US$ 47.2 bn 8.9 mm ₹ 91.6 bn Live Accounts(1) PMS & SMA AUM(1) (3) 210 Branches(1)(2); 75k+ Empaneled 1,167 Employees(1) Distribution Par

  5. Slide 5: Total AUM and Market Share

    Total AUM and Market Share Total AUM(1) Market Share in Total AUM(2) ₹ billion HDFC MF, * YoY 12% Dec-2018 14.4% 3,291 2,933 2,920 2,926 2,306 Sep-2018 HDFC MF, Dec-2017 HDFC MF, 13.3% 13.8% 1,656 1,506 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 ____________________ (1) Source: Internal *Due t

  6. Slide 6: Actively Managed Equity-oriented AUM and Market Share

    Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM(1) AUM(2) ₹ billion HDFC MF YoY 3 % Dec-2018 16.0% 1,496 1,476 1,535 1,449 957 Sep-2018 Dec-2017 HDFC MF HDFC MF 675 629 16.0% 17.1% Mar-15 Mar-16 Mar-17 Dec

  7. Slide 7: AUM by Segment – HDFC AMC and Industry

    AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1) Industry AUM by Segment(2) Dec-2018 Others Dec-2018 0.3% Others Liquid 5.0% 23.9% Liquid 19.5% Equity Equity 48.0% 44.8% Debt Debt 27.8% 30.7% Sep-2018 Dec-2017 Sep-2018 Dec-2017 Others Others Others Others 0.2% 0.3% 4.4% 3.6% Liq

  8. Slide 8: Individual Investors – no of Accounts & MAAUM

    Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total(1) YoY 10% YoY 17% 931 945 1,350 1,850 1,863 1,985 2,033 8.86 Mar-14 to Dec-18 CAGR: 28% 8.62 64.5% 62.2% 62.2% 61.8% 8.05 7.56 56.3% 56.0% 52.8% 53.6% 6.15 5.55 5.14 Mar-15

  9. Slide 9: Most Preferred Choice of Individual Investors

    Most Preferred Choice of Individual Investors Individual Assets Market Share (Dec-18) Individual Assets Market Share (Sep-18) Individual Assets Market Share (Dec-17) 15.4% 15.1% 16.0% 13.9% 14.0% 14.7% 9.5% 9.4% 9.3% 9.8% 9.4% 9.1% 9.9% 9.8% 8.3% HDFC ICICI Pru ABSL SBI Reliance HDFC ICICI Pru ABSL

  10. Slide 10: Unique Investors

    Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 28% 27% (Unique Investors in million) 20.0 19.1 18.4 15.7 15.0 10.0 5.1 5.2 5.0 4.3 0.0 Dec’17 Sep'18 Dec'18 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry 10 Source: CAMS. Note: Unique Investors include

  11. Slide 11: Systematic Transactions

    Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ mm) Long Tenure SIP Book(1) 3.36 77.1% 11,531 11,470 11,689 64.2% 10,698 6,768 1.62 5,494 4,999 Over 5 Years Over 10 Years 4,745 4,854 Strong and growing “Order Book” to prov

  12. Slide 12: Multi-channel Distribution Network

    Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Dec-18) Equity-oriented AUM (Dec-18) HDFC Bank 7.8% HDFC Bank 10.9% Banks, 13.9% Direct 17.7% Banks, 17.2% Direct 39.7% IFAs 28.5% National Distributors 22.0% IFAs National Distributors 43.1% 18.0% Sep-2018 HDFC Bank

  13. Slide 13: Geographic Spread

    Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 14.3% 17.8% Others, 36.4% HDFC MF, 11.9% Reliance ICICI Pru MF, 11.8% MF, 10.9% UTI MF, T 30, 11.2% 85.7% Network of 210 branches with 134 in B-30 cities(2) c. 75k+ empaneled distribution partners _____

  14. Slide 14: Strong Digital Presence

    Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 28.8% 49.2% 51.8% 69.9% Digitization Across Functions 71.2% 50.8% 48.2% 30.1% FY15 FY18 Q3FY18 Q3FY19 Electronic Physical Strong online presence - dedicated separate digital

  15. Slide 15: Recent Developments

    Recent Developments o Amendments in TER as per SEBI notification dated 13th December 2018, effective from 1st April 2019. o Effective 22nd October 2018, regulator has made following key changes • All scheme related expenses, including distributor commissions, to be paid from scheme accounts only and

  16. Slide 16: Financials

    Financials 16

  17. Slide 17: Ind AS Transition

    Ind AS Transition ▪ Adoption of Indian Accounting Standards (Ind AS) with effect from 1 st April 2018. ▪ Results of Q3 FY19 & 9M FY19 are prepared as per Ind AS requirements. ▪ Accordingly figures for Q3 FY18 & 9M FY18 have been restated. Key Changes Remarks Investments Investments are fair valued t

  18. Slide 18: PAT Reconciliation - Previous GAAP Vs Ind AS – Q3 FY18

    PAT Reconciliation- Previous GAAP Vs Ind AS – Q3 FY 18 (Rs. mm) Particulars Q3 FY 18 Net profit after tax as reported under Previous GAAP 1,846 Adjustment increasing / (decreasing) net profit after tax as reported under Previous GAAP (net of tax): Fair value change in investments 139 Fair valuation

  19. Slide 19: Financials Summary – Nine months ended Earnings

    Financials Summary – Nine months ended Earnings (Rs. mm) Particulars 9M FY19 9M FY18 Change Revenue from Operations 14,287 12,881 11% Other Income 1,206 817 48% Total Revenue 15,493 13,698 13% Expenses Employee Benefit Expense 1,587 1,422 12% Depreciation and Amortization Expense 94 70 34% Business

  20. Slide 20: Financials Summary – Quarterly Earnings

    Financials Summary – Quarterly Earnings (Rs. mm) Particulars Q3 FY19 Q3 FY18 Change Revenue from Operations 4,771 4,676 2% Other Income 559 276 103% Total Revenue 5,330 4,952 8% Expenses Employee Benefit Expense 505 503 0% Depreciation and Amortization Expense 37 25 49% Business Development and Othe

  21. Slide 21: Operating Profit Margin

    Operating Profit Margin Operating Revenue Operating Expenses PBT&OI (bps of AAUM) 63 63 65 64 60 53 29 25 29 33 44 34 34 35* 34 31 21 19 9M FY18 9M FY19 HDFC AMC Reliance AMC ICICI Pru AMC ABSL AMC FY18 as per previous GAAP 9M FY18 as per Ind AS 9M FY19 as per Ind AS FY18 *Adjusted for non recurring

  22. Slide 22: Profitable…

    Profitable… FY17 Profit after tax (Rs bn) FY18 Profit after tax (Rs bn) 5.50 7.22 4.81 6.26 4.05 5.05 3.31 3.22 2.24 2.21 FY17 ICICI Pru Reliance SBI ABSL FY18 ICICI Pru Reliance SBI ABSL AMC AMC AMC AMC AMC AMC AMC AMC Most profitable asset management company in India in terms of net profits since

  23. Slide 23: Financials Summary – Historical Trends

    Financials Summary – Historical Trends Figures In Rs mm Revenue from Operations Operating Profit 17,598 9,550 14,800 12,260 6,919 9,527 5,459 5,487 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Profit before tax Profit after tax 10,625 7,216 7,998 5,502 5,877 6,005 3,925 4,074 FY15 FY16 FY17 FY18 FY15 FY1

  24. Slide 24: ROE and Dividend Payout Ratio

    ROE and Dividend Payout Ratio 40% + Return on Equity(1) FY15 FY16 FY17 FY18 41.1% 42.1% 42.8% 40.3% 40% 40% + return on average net worth every year since FY15 Consistently improving Dividend Payout Ratio(2) ____________________ 24 (1) Calculated as Profit After Tax divided by average Net Worth (2)

  25. Slide 25: Thank You

    ‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 25

  26. Slide 26: Disclaimer

    Disclaimer This presentation is for information purposes only and does not constitute an offer or invitation to sell or the recommendation or solicitation of an offer or invitation to purchase any securities (“Securities”) of HDFC Asset Management Company Limited (the “Company”) in India, the United

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