Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q3 FY22 Earnings Presentation
49 slides from Nippon Life India Asset Management's earnings presentation, Jan 27, 2022
Slide 1: Exchange cover letter: Investor Presentation
January 27, 2022 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 FY22
Investor Presentation Q3 FY22 January 2022
Slide 3: Highlights
Highlights Q3 MF QAAUM market share at 7.34% - up 22bps in 9m FY22 Q3 MF QAAUM at INR 2,806 billion - an increase of 32% 9m Profit after Tax at INR 5.7 billion - an increase of 11% 9m Operating Profit at INR 5.6 billion - an increase of 55% Share in Industry’s B-30 folios rose from 10.4% to 11.6% in
Slide 4: NAM India - Profile
NAM India - Profile One of the largest Asset Manager in India, with 26 years of track record 270+ Locations NAM India AUM INR 3.45 trillion (as of Dec 31, 2021) 960+ Employees Mutual INR 2,774 bn* ~83,800 Funds Distributors Managed INR 590 bn 9.8 mn Accounts Q3 FY22 Trnx International INR 87 bn 15.2
Slide 5: Key focus areas - Being Future Ready
Key focus areas - “Being Future Ready” 1 2 3 Superior fund Consolidate our Expansion of non- performance Passive strategy MF businesses Dominant position • AIF & PMS businesses Consistent improvement (69% share in market • Leverage NLI’s parentage in performance of key volumes) to grow Offshore segm
Slide 6: Industry AUM Trend
Industry AUM Trend A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 7: Quarterly AUM
Quarterly AUM Industry AAUM (INR bn) 38,209 36,208 10% 32,106 33,179 10% 29,714 9% 12% 9% 13% 8% 14% 14% 16% 28% 30% 34% 33% 35% 47% 49% 42% 44% 40% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Equity Debt Liquid ETFs YoY growth led by equity and passive funds, while debt grew at a tepid pace; equities contin
Slide 8: NIMF - AUM Trends
NIMF - AUM Trends A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 9: Quarterly trends
Quarterly trends (INR bn) Mutual Fund QAAUM MF QAAUM Mix 7.3% 7.3% 7.2% 15% 16% 17% 17% 18% 7.2% 14% 12% 12% 12% 12% 7.1% 2,806 32% 31% 30% 29% 27% 2,655 2,286 2,404 2,130 39% 41% 41% 43% 43% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 QAAUM (INR bn) Market share Equity Deb
Slide 10: Investor First
A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 11: Investor First remains the core philosophy
“Investor First” remains the core philosophy Launched innovative and 1st-of-its-kind products Nippon India Taiwan Equity Fund ❑ Launched in partnership with Cathay SITE (Taiwan’s largest Asset Manager) ❑ Fund is a one-of-its-kind diversification opportunity to invest in Taiwan ❑ NFO garnered funds o
Slide 12: Retail Focus
Retail Focus A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 13: Consistent growth in share of MF investors
Consistent growth in share of MF investors (in million) Unique Investors Total Folios 32.3% 32.5% 12.6% 31.4% 11.9% 11.1% 30.2% 10.2% 9.7% 28.7% 10.0 15.2 13.3 8.6 11.4 7.5 9.2 10.0 6.9 6.2 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 B-30 Folios ETF Folios 57.5% 59.8% 11.6%
Slide 14: Strong pace of investor acquisition continues
Strong pace of investor acquisition continues A new Digital Purchase every… A new SIP Purchase every… 12s 7s 20s 15s FY21 Q3 FY22 FY21 Q3 FY22 A new folio added every… A new ETF folio added every… 20s 3s 16s 3s FY21 Q3 FY22 FY21 Q3 FY22 * Frequency in seconds calculated with assumption of 252 days i
Slide 15: Higher share of Retail & B-30 segments
Higher share of Retail & B-30 segments Investor segment-wise breakup of AAUM (%) NIMF 28% 22% 51% Industry 23% 32% 45% Retail SBI MF 15% 27% 58% HDFC MF HNI 23% 36% 41% ICICI Prudential MF 18% 39% 43% Corporate ABSL MF 23% 25% 52% Contribution from B-30 locations (B-30 AAUM / Total AAUM) NIMF 17.5%
Slide 16: Systematic Transactions
Systematic Transactions Quarterly Book (INR bn) Folios (mn) 3.7 3.6 3.3 3.4 Q3 FY22 Book (INR bn) 3.3 6.9 20.1 18.8 6.7 17.7 17.0 17.5 6.6 Oct-21 Nov-21 Dec-21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 SIP accounts continuing for >5 years 45% As on Folios at 3.7 mn (+14%) Dec 31, 2021 AUM at INR 507 b
Slide 17: ETF - Leveraging first mover advantage
ETF - Leveraging first mover advantage
Slide 18: Comprehensive portfolio of Passive Funds
Comprehensive portfolio of Passive Funds NIMF ETFs & Index Funds Fixed Income Equity Commodity Nippon India ETF Liquid BeES Nippon India ETF Gold BeES Nippon India ETF Long Term Gilt Nippon India Silver ETF Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 Maturity Nippon India ETF Nifty SDL - 2026 M
Slide 19: Leadership position maintained
Leadership position maintained Largest bouquet of 25 ETFs in the industry across Equities, Debt & Commodities ~69% 60% 13% INR 515 bn INR 63 bn Volume Share* Share of folios Market Share ETF QAAUM Gold ETF QAAUM NSE volume (Oct - Dec 2021) (INR mn)** Nifty Bank ETFs & Nifty Mutual Funds Nifty 50 ETF
Slide 20: Digital initiatives
Digital initiatives A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 21: Building Digitech Ecosystem
Building Digitech Ecosystem Digital KYC Business Process automation - RPA, OCR Chat Bot / IVR implementation Instant Folio creation Fund Accounting automation First level support through AI Finance & HR process Automation Customer Customer Operations Onboarding Servicing Transactions digitalized Dee
Slide 22: Global pivots reinventing a Zero-touch economy with Digital at core
Global pivots reinventing a Zero-touch economy with Digital at core Online Purchases - Value redefined: From novelty/leisure to necessity Increase in remote working Changing needs & expectations Virtual collaboration Increasing demand for online PRE: Offline concentrated PRE: Digital interaction pro
Slide 23: Shifts undertaken for the Perpetual Beta & Unseen times
Shifts undertaken for the Perpetual Beta & Unseen times NDs EARLIER Homogenous set of retail investors: Relationship BN & tradition driven In-person interaction; Ds Paper-driven BNDs Transactions NIMF MFDs Website NIMF Branch Network Large-scale Institutional Investors MFDs NDs BNDs Retail Distribut
Slide 24: Digital Transformation Architecture across all touchpoints
Digital Transformation Architecture across all touchpoints Geared to serve customers end-to-end, digitally with a 360˚omni-channel approach, no matter where they are ONBOARD COMMERCE Digital acquisition through Complete suite of Digital Assets to serve the performance campaigns and diverse needs of
Slide 25: Digital Business
Digital Business Lumpsum & New SIP Registration Digital Purchases (lakhs)* Q3 FY22 7.6 83% Q3 FY21 4.1 ❑ Digital contribution-to-total NIMF purchase transactions stood at 58% in Q3 FY22 ❑ Digital SIP registrations contributed 43% of the total new SIPs registered in Q3 FY22 ❑ New Digital Lumpsum Purc
Slide 26: Distribution
Distribution A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 27: Strong Distribution
Strong Distribution Total base of empaneled distributors rose to approx. 83,800 78 90 87 83,500+ Banks National Distributors Alternate Mutual Fund (incl. PSU banks) Distributors Large base of MFDs - one of our biggest strengths 26
Slide 28: Leveraging partnership with MFDs to garner Retail assets
Leveraging partnership with MFDs to garner Retail assets Overall Distribution Mix Mix of Distributed Assets Banking Distributors 22% Distributed Direct Assets Channel Mutual Fund 45% Distributors 55% 58% National Distributors 20% Distributed Assets (investor-wise) AUM (INR bn) Corporate 20% 654 Reta
Slide 29: Other Businesses
Other Businesses A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 30: Nippon India Alternate Investments (NIAIF)
Nippon India Alternate Investments (NIAIF) ❑ Offer Category II & Category III AIFs across various asset classes ❑ Equity / Real Estate / Credit / Technology & Venture Capital FoF ❑ As on December 2021, raised commitments of INR 42 billion across funds ❑ Continue to deliver superior long-term perform
Slide 31: Offshore Business - Creating expressways globally
Offshore Business - Creating ‘expressways’ globally Key presence Singapore Mauritius Dubai Japan 117 115 (INR bn) 102 103 101 30 28 36 33 30 Advisory 71 87 87 65 70 Managed Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Other International Tie Ups ETFS Reliance India Nifty 50 ETF Godo Kaisha Genkai India Invest
Slide 32: ESG Focus
A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 33: ESG at NAM India
ESG at NAM India Comprehensive framework that will guide the policies, processes and responsible investment practices To create a sustainable future for our stakeholders by integrating environmental, social Vision and governance (ESG) principles into our business operations, investment processes and
Slide 34: ESG Initiatives
ESG Initiatives Environment Social Governance • Policy Implementation: NAM is in the • Healthcare • Policy Framework: NAM India is In process of implementing the formal • NAM India, as a part of its CSR the process of introducing a formal Environment Policy program, contributed towards organization-
Slide 35: Financial Overview
Financial Overview A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 36: Financial Summary
Financial Summary Consolidated (INR mn) Particulars Q3 FY22 Q3 FY21 Change (YoY) Q2 FY22 Change (QoQ) FY21 Revenue from Operations 3,385 2,685 26% 3,279 3% 10,621 Operating Expenditure 1,335 1,303 2% 1,423 -6% 5,423 Fee & Commission Expenses 118 101 16% 119 -1% 432 Employee benefits expense 729 665
Slide 37: Financial Assets
Financial Assets Constituents of Financial Assets (INR mn) Dec 31, 2021 March 31, 2021 Investment in NIMF’s schemes 24,965 23,496 - Equity 2,194 2,403 - Debt 22,771 21,093 Bank FDs and tax-free bonds 4,079 4,515 Other assets 2,948 1,765 Total 31,992 29,776 NIMF - NIMF - Other Other Equity Bank FDs E
Slide 38: Operating Metrics
Operating Metrics Benefits from operating leverage to manifest as AUM increases QAAUM / Branch QAAUM / Employee (INR bn) 14.6 12.8 11.7 10.4 11.5 2.1 2.0 2.0 2.3 2.9 Mar-18 Mar-19 Mar-20 Mar-21 Dec-21 Profit / Branch Profit / Employee (INR mn) 137.4 145.0 109.3 97.7 84.3 17.8 17.0 27.5 28.9 15.9 FY1
Slide 39: Dividend History
Dividend History Earnings Per Share (INR) Dividend Payout (INR bn) 4.92 10.90 4.42 4.42 7.94 3.44 7.62 6.69 FY 18 FY 19 FY 20 FY 21 FY 18 FY 19 FY 20 FY 21 Total Dividend INR 8 per share in FY21 76% of FY21 earnings shared with shareholders Cumulative dividend of INR 27 bn in last 7 financial years
Slide 40: Shareholding Pattern
Shareholding Pattern Constituent of Banks / MFs / S&P BSE 150 MidCap Index Insurance / AIFs S&P BSE 200 Retail / 8% Corporates / S&P BSE 250 LargeMidCap Index Others S&P BSE 400 MidSmallCap Index 10% S&P BSE 500 Foreign Investors 7% S&P BSE AllCap Nippon Life Insurance NIFTY LargeMidcap 250 74% NIFT
Slide 41: Thank you for your time! Stay safe!
Thank you for your time! Stay safe!
Slide 42: Annexure
A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 43: About Nippon Life Insurance
About Nippon Life Insurance A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 44: Profile
Profile ❑ Fortune 500 company (Rank 111 in 2021)1 ❑ Japan’s largest private life insurer & one of the largest in the world2 ❑ Total assets over US$ 774 bn3 ❑ 58 Asset Management related & 21 Insurance related operations worldwide4 Asset Management Presence in India Life Insurance Shareholding - 73.8
Slide 45: Nippon Life Group
Nippon Life Group Nippon Life Domestic Insurance Business Asset Management Business Overseas Insurance Business Taiju Life Nippon (82.6%) Reliance Nippon Life India Asset Revenues from insurance and Life Insurance Management reinsurance premiums (FY2020-21): (49.0%) $3.8bn (73.8%) GWP (FY2020-21): $
Slide 46: Board Of Directors
Board Of Directors A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 47: 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 48: Profile of Board Members
Profile of Board Members Mr. Yutaka Ideguchi (Associate Director) is a Member of the Board of Directors, Senior Managing Executive Officer of Nippon Life Insurance Company (NLI). He has been involved in the areas of finance, International Planning & Operation in NLI. He has been a Regional CEO for A
Slide 49: 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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