Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q3 FY23 Earnings Presentation
52 slides from Nippon Life India Asset Management's earnings presentation, Jan 30, 2023
Slide 1: Cover letter to BSE and NSE
January 30, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Fort, Mumbai 400 001 G Block, Bandra Kurla Complex, BSE Scrip Code: 540767 Bandra (East), Mumbai 400 051 NSE Scrip Symbol: NAM-INDIA Dear Sir(s), Su
Slide 2: Investor Presentation Q3 FY23
Investor Presentation Q3 FY23 January 2023
Slide 3: Macro Trends
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Slide 4: India's growth momentum continues across cycles
India’s growth momentum continues across cycles… 20-year CAGR: 12% GDP (INR trillion) YoY growth 20% 20% 17% 15% 15% 14% 14% 14% 14% 13% 12% 13% 12% 11% 10% 11% 11% 8% 237 201 198 154 171 189 138 87 99 112 125 6% -1% 55 64 76 25 28 32 36 43 49 Gross Financial Savings 10-year CAGR: 14% • Indian GDP g
Slide 5: Key enablers - formalization of economy and digitisation
Key enablers - formalization of economy and digitisation • Smartphone penetration (% of population) in India is expected to Smartphone penetration in India (%) reach 96% by 2040 66% • Total value of monthly UPI transactions 61% 54% touched an all-time high of INR 11.2 46% 35% trillion in Sep 2022 29
Slide 6: Retail interest in capital markets mirrored economic trends
Retail interest in capital markets mirrored economic trends No. of demat accounts (mn) Demat nos. up 3x in the last 5 years 658 716 ADTO* (INR bn) Crossed 100 million in Aug 2022 386 333 349 221 242 205 187 207 199 95 116 154 139 130 133 90 37 64 66 55 32 36 41 19 20 21 22 23 25 28 4 6 7 9 10 14 15
Slide 7: MF under-penetration presents significant growth potential
MF under-penetration presents significant growth potential Unique MF investors • Less than 3% of the population invests in MFs CAGR: 23% 2.6% • Industry’s AUM has quadrupled since 2014 2.5% 1.6% 1.7% • Industry crossed 140 million folios in Dec 2022 34 37 • At INR 136 billion, Dec 2022 recorded the
Slide 8: Nippon Life India Asset Management
Nippon Life India Asset Management
Slide 9: Highlights
Highlights NIMF’s Industry maintained ranking at 4th position (on QAAUM basis) QAAUM rose to INR 2,928 billion - up 4% NIMF has the largest investor base in the Industry 19 million investor folios led by strength in Retail segment - up 3.8 mn since Dec-21 NIMF has 13 million Unique Investors - up 33
Slide 10: NAM India - Profile
NAM India - Profile One of the largest Asset Manager in India, with 27 years of track record 270 Locations NAM India AUM INR 3.60 trillion (as of Dec 31, 2022) ~1,000 Employees Mutual INR 2,849 bn* Funds 89,000+ Distributors Managed INR 661 bn 11.9 mn Accounts Q3 FY23 Trnx International INR 93 bn 19
Slide 11: Key focus areas - Being Future Ready
Key focus areas - “Being Future Ready” Improvement in performance of schemes continue to support gains in overall Consistent fund performance market share • Strong position in the Retail segment; largest investor base in the industry De-risking through • Dominant position (69% share in market volume
Slide 12: Industry AUM Trend
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Slide 13: Quarterly AUM
Quarterly AUM Industry AAUM (INR bn) 39,059 40,268 38,209 38,380 37,748 11% 12% 13% 10% 11% 12% 13% 14% 14% 14% 22% 21% 28% 27% 25% 49% 50% 51% 52% 49% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Equity Debt Liquid ETFs Equity AUM (+13%) and ETF (+29%) grew, while fixed income assets fell by 9% (vs. Q3 FY22)
Slide 14: NIMF - AUM Trends
NIMF - AUM Trends WA <> Nippon Life india Asset Management Ltd
Slide 15: Quarterly trends
Quarterly trends (INR bn) Mutual Fund QAAUM MF QAAUM Mix 7.3% 7.4% 7.4% 7.3% 7.3% 18% 20% 22% 22% 23% 12% 12% 14% 14% 14% 27% 26% 23% 20% 18% 2,806 2,833 2,794 2,851 2,928 43% 42% 42% 43% 44% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 QAAUM (INR bn) Market share Equity Deb
Slide 16: Segmental trends
Segmental trends (INR bn) Corporate MAAUM HNI MAAUM 8.3% 8.3% 8.2% 5.4% 5.6% 7.9% 5.3% 7.6% 5.1% 5.0% 1,411 1,398 702 746 1,360 1,356 600 617 626 1,309 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Retail MAAUM B-30 MAAUM 8.8% 8.7% 8.7% 8.7% 8.6% 7.9% 8.1% 7.8% 7.9% 7.7% 847
Slide 17: Investor First
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Slide 18: Investor First remains the core philosophy
“Investor First” remains the core philosophy One of the lowest investor complaint ratios in the Industry Q3 FY23 Investor Complaints (% of total folios) ABSL MF 0.001% SBI MF 0.003% Kotak MF 0.006% HDFC MF 0.005% ICICI Prudential MF 0.003% NIMF 0.001% NIMF has 14 complaints per million folios vs. av
Slide 19: Varied product offerings to meet investors' diverse needs
Varied product offerings to meet investors’ diverse needs Robust pipeline to strengthen both active and passive segments Nippon India Innovation Fund Nippon India Nifty AAA PSU Bond Plus SDL - June 2031 Maturity 50:50 Index Fund Nippon India Nifty G-Sec Oct 2028 Maturity Index Fund Nippon India Nift
Slide 20: Retail Execution
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Slide 21: Largest investor base in the Industry
Largest investor base in the Industry (in million) Unique Investors Total Folios 13.1% 13.6% 13.5% 13.5% 37.4% 37.1% 12.6% 36.0% 35.7% 32.5% 18.6 19.0 13.2 13.4 13.2 17.0 18.3 12.0 15.2 10.0 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 B-30 Folios ETF Folios 59.8% 60.1% 60.4
Slide 22: Higher share of Retail & B-30 segments
Higher share of Retail & B-30 segments Investor segment-wise breakup of AAUM (%) NIMF 30% 25% 45% Industry 25% 33% 42% Retail SBI MF 15% 27% 58% HDFC MF HNI 26% 40% 34% ICICI Prudential MF 20% 41% 39% Corporate ABSL MF 25% 27% 49% Contribution from B-30 locations (B-30 AAUM / Total AAUM) NIMF 19.2%
Slide 23: Systematic Transactions
Systematic Transactions Quarterly Book (INR bn) Folios (mn) 4.6 4.3 4.0 4.1 Q3 FY23 Book (INR bn) 3.7 29.1 9.7 10.3 9.1 25.6 21.3 22.8 20.1 Oct-22 Nov-22 Dec-22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 SIP accounts continuing for >5 years 56% As on Folios at 4.6 mn (+24%) Dec 31, 2022 AUM at INR 583
Slide 24: ETF - Leveraging first mover advantage
ETF - Leveraging first mover advantage
Slide 25: Comprehensive portfolio of Passive Funds
Comprehensive portfolio of Passive Funds NIMF ETFs & Index Funds Fixed Income Equity Commodity Nippon India ETF Nifty 1D Rate Liquid BeES Nippon India ETF Gold BeES Nippon India ETF Nifty 8-13 yr G-Sec Long Term Gilt Nippon India Silver ETF Nippon India ETF Nifty CPSE Bond Plus SDL Sep 2024 50:50 Ni
Slide 26: Leadership position maintained
Leadership position maintained One of the largest bouquet of 25 ETFs in the industry across Equities, Debt & Commodities 69% 61% 14% INR 683 bn INR 67 bn Volume Share* Share of folios Market Share ETF QAAUM Gold ETF QAAUM NSE volume (Oct - Dec 2022) (INR mn)** Nifty Bank ETFs & Nifty Mutual Funds Ni
Slide 27: Digital initiatives
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Slide 28: Digital Business
Digital Business Lumpsum & New SIP Registration Digital Purchases (lakhs)* Q3 FY23 9.0 19% Q3 FY22 7.6 ❑ Digital business grew by 19% in Q3 FY23 vs. Q3 FY22 ❑ Digital (New Purchase and SIP registrations) transactions at 902k+ in Q3 FY23 ❑ Digital contribution-to-total NIMF purchase transactions stoo
Slide 29: Key Transformational Rollouts in Q3 FY23
Key Transformational Rollouts in Q3 FY23 NIMF WhatsApp Channel for Investors Cart Buying - Investor Web & M-site + Services Transactions Desktop Mobile Leveraging the largest social chat application - WhatsApp - as a Conventional to Contemporary: e-Commerce like Mutual Fund Digital Business Channel
Slide 30: Key initiatives undertaken in Q3 FY23
Key initiatives undertaken in Q3 FY23 Performance Campaigns reaching new horizons Successful use of Adobe Suite to increase quality & quantity Recognised in The Great Indian BFSI Awards for ‘The Great Launched AMP Email campaigns opening a gateway for Indian BFSI Digital Marketing Campaign of the Ye
Slide 31: Distribution
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Slide 32: Strong Distribution
Strong Distribution Total base of empaneled distributors rose to over 89,000 74 91 78 88,800+ Banks National Distributors Alternate Mutual Fund (incl. PSU banks) Distributors Large base of MFDs - one of our biggest strengths 31
Slide 33: Leveraging partnership with MFDs
Leveraging partnership with MFDs Overall Distribution Mix Mix of Distributed Assets Banking Distributors 22% Direct Distributed Channel Assets Mutual Fund 53% 47% Distributors 58% National Distributors 20% Distributed Assets (investor-wise) AUM (INR bn) Corporate 18% 725 Retail HNI 53% 404 29% 248 R
Slide 34: Other Businesses
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Slide 35: Nippon India Alternate Investments (NIAIF)
Nippon India Alternate Investments (NIAIF) ❑ NIAIF delivered consistent long-term investment performance across asset classes ❑ As on December 2022, NIAIF raised commitments of INR 53 billion across funds ❑ Fully committed the two Real Estate mandates of offshore investors ❑ First closing of success
Slide 36: Offshore Business - Creating expressways globally
Offshore Business - Creating ‘expressways’ globally Key presence Singapore Dubai Japan (INR bn) 115 114 111 114 101 21 28 27 23 23 Advisory 87 88 77 89 93 Managed Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Other International Tie Ups Xtrackers India Govt. Bond UCITS ETF Godo Kaisha Genkai India Investment*
Slide 37: ESG Focus
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Slide 38: Vision
Social responsibility theme and commitment aligned with UN SDGs Vision To create a sustainable future for our stakeholders by integrating environmental, social and governance (ESG) principles into our business operations, investment processes and stewardship ESG integration initiatives are focused o
Slide 39: Financial Overview
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Slide 40: Financial Summary
Financial Summary Consolidated (INR mn) Change Change Particulars Q3 FY23 Q3 FY22 Q2 FY23 FY22 (YoY) (QoQ) Revenue from Operations 3,538 3,385 5% 3,316 7% 13,066 Operating Expenditure 1,494 1,335 12% 1,459 2% 5,470 Fee & Commission 126 118 7% 139 -9% 513 Employee benefits 747 729 2% 765 -2% 2,903 Fi
Slide 41: Financial Assets
Financial Assets Constituents of Financial Assets (INR mn) Dec 31, 2022 Mar 31, 2022 Investment in NIMF’s schemes 25,395 27,090 - Equity 2,773 2,694 - Debt 22,622 24,396 Bank FDs and tax-free bonds 3,670 3,995 Other assets 3,008 2,706 Total 32,073 33,790 NIMF - NIMF - Other Other Bank FDs Equity Ban
Slide 42: Operating Metrics
Operating Metrics Benefits from operating leverage to manifest as AUM increases QAAUM / Branch QAAUM / Employee (INR bn) 14.8 15.3 11.7 11.5 10.4 2.0 2.0 2.3 2.9 2.9 Mar-19 Mar-20 Mar-21 Mar-22 Dec-22 Profit / Branch Profit / Employee (INR mn) 43.0 38.8 34.4 24.4 21.1 6.9 7.7 8.2 4.2 4.0 FY19 FY20 F
Slide 43: Dividend History
Dividend History Earnings Per Share (INR) Dividend Payout (INR bn) 6.84 11.81 10.90 4.93 4.43 7.94 6.69 3.44 FY 19 FY 20 FY 21 FY 22 FY 19 FY 20 FY 21 FY 22 Total Dividend INR 11 per share in FY22 96% of FY22 earnings shared with shareholders Cumulative dividend of INR 34 bn in last 8 financial year
Slide 44: Thank you for your time! Stay safe!
Thank you for your time! Stay safe!
Slide 45: Annexure
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Slide 46: About Nippon Life Insurance
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Slide 47: Profile
Profile ❑ Largest market share in Japan among private life insurers (in terms of premium income) ❑ Total assets over US$ 722 bn ❑ 57 Asset Management related & 21 Insurance related operations worldwide Asset Management Presence in India Life Insurance Shareholding - 73.7%5 Shareholding - 49.0%5 *As
Slide 48: Nippon Life Group
Nippon Life Group Nippon Life Domestic Insurance Business Asset Management Business Overseas Insurance Business Nissay Asset Taiju Life MLC Limited Management (85.0%) (80.0%) (100.0%) Nippon Reliance Nippon Wealth Life Nippon Life India Life Insurance (100.0%) Asset Management (49.0%) (73.7%) Bangko
Slide 49: Board Of Directors
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Slide 50: Profile of Board Members
Profile of Board Members… General Ved Prakash Malik (Retd.) (Independent Director) has worked in the Indian Army as Chief of the Army Staff from October 1, 1997 to September 30, 2000. He had dual responsibility of being an advisor to the Government as well as commander of 1.2 million strong Indian A
Slide 51: Profile of Board Members
Profile of Board Members Mr. Minoru Kimura (Associate Director) serves as Managing Executive Officer, Head of Global Business at Nippon Life Insurance (Nippon). In his 32-year professional career with Nippon, he has engaged in corporate planning for more than 10 years. Also, he has worked for Nissay
Slide 52: 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
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