Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q2 FY21 Earnings Presentation
35 slides from Uti Asset Management's earnings presentation, Oct 29, 2020
Slide 1: Filing cover letter to stock exchanges
Ufl Asset lonogemenl Compony Ltd. ,ft( 'gJtnfl' Mutual UTI Fund Ref: UTI/AMC/CS/SE/2020-2 I /0 I 5 Date: 29th October, 2020 National Stock Exchange of lndia Limited BSE Limited Exchange Plaza. Plpot No. C/l Phiroze Jeejeebhoy Towers, G Block, Bandra-Kurla Complex. Dalal Street, Bandra (East), Mumbai
Slide 2: Q2 & H1 FY21 Investor Presentation
Q2 & H1 FY21 Investor Presentation • October 2020
Slide 3: UTI AMC at a glance
UTI AMC at a glance • UTI AMC – Incorporated on 14th November 2002 INR 10,435 bn • One of the largest AMC in India by total AUM Total AUM • One among the top 10 MFs in India with high share of MAAUM in B30 cities INR 8,884 bn INR 1,552 bn • Established position in retirement solutions MF QAAUM Other
Slide 4: UTI AMC Structure
UTI AMC Structure Investment Manager to UTI Mutual Fund Support Services to SUUTI UTI AMC Ltd. Investment Manager to Offshore Funds 100% Subsidiaries PMS (includes EPFO, CMPFO, ESIC and Postal Life Funds) UTI International Ltd. Manager for International (Offshore) Funds UTI Venture Fund Management C
Slide 5: Healthy mix of shareholders
Healthy mix of shareholders 4.47% 2.60% UTI AMC is a professionally managed T. Rowe Price company with no promoters 2.30% PNB 7.92% 23.00% T. Rowe Price – a global investment Retail Shareholders management firm is the largest SBI shareholder SBI, BOB and LIC divested their stake to LIC 9.99% B
Slide 6: Well diversified anchor investors
Well diversified anchor investors Mutual Funds FIIs AIFs Insurance Companies Aditya Birla MF Elara India Opportunities Avendus Absolute Return Canara HSBC OBC Life BNP MF Goldman Sachs Singapore ODI Edelweiss AIFs HDFC Life Canara Robeco MF HSBC Global IIFL Spec Ops Kotak Mahindra Life HDFC MF Kotak
Slide 7: Key Investment Highlights
Key Investment Highlights • Strong reach across the Country. Multi Channel distribution network, well spread presence through mutual fund distributors, Banks, Distributors, Fin Techs Multi-channel distribution network • Mutual Fund Distributors have 60% share in Equity & Hybrid Funds* • 12% share of
Slide 8: Growth pillars
Growth pillars Expanding geographical spread Enhancing digital adoption Continue to develop PMS, offshore and alternative funds businesses Prudent Investment management policies 7
Slide 9: Multi-channel distribution network brings stability of flows
Multi-channel distribution network brings stability of flows Total QAAUM (Sep '20) ➢ Wide distribution network in India which gives access to investors located in 697 out of 10% the 722 districts 29% 61% ➢ Network of 163 branches with 105 branches located in B-30 cites as of Sep 30, 2020. Direct MFD
Slide 10: B30 cities remain cornerstone for growth
B30 cities remain cornerstone for growth MAAUM UTI MUTUAL FUND Sep 20 B30 ➢ Improved awareness about investing in financial products vis a vis 24% traditional investment T30 ➢ Our established presence in B30 cities has enabled us to attract 76% new clients and positions us to capitalize on future gr
Slide 11: Enabling Business Digitally
Enabling Business Digitally 24x7 Digital Channels Assisted Journeys integrated Building Community - Access at your convenience anytime anywhere - Customer service for Product & - Active engagement on multiple touch points across - Website utimf.com, Mobile App, Chatbot UNO, Investment enquiry Social
Slide 12: Acceptance of digitisation reflected in growing online transactions
Acceptance of digitisation reflected in growing online transactions Online Gross Sales as % of Total Gross Sales 95.1% 87.9% 89.4% 88.7% 87.7% 83.4% FY 17 FY 18 FY 19 FY 20 Q2 FY20 Q2 FY21 ➢ Number of lumpsum transactions through Digital grew by 54.32% in Q2FY21 as compared to Q2FY20 ➢ Number of dig
Slide 13: Steps to increase digital presence are paying off
Steps to increase digital presence are paying off No. of digital purchase transactions (mn) 2.6 For Customers • Seamless accessibility through app 2.0 • Complete digitally-enabled KYC process 1.5 0.95 For Distributors • “UTI Buddy” – Mobile app for distributors • Introducing new digital training ini
Slide 14: Continue to develop International and Alternative Funds businesses
Continue to develop International and Alternative Funds businesses • Focusing on distribution partnerships, including co-branded and white-labelled funds ➢ Appointed as advisors to J Safra Sarasin ESG Fund • Expanding alternative investment funds business ➢ Successfully completed first close of UTI
Slide 15: Prudent Investment Management policies
Prudent Investment Management policies Risk Identification • Stress testing CONTROL ADVISORY • Product development process • Internal & • Risk control self assessment • Equity Research • Review Mechanism External Audit team, Regular • Debt & Macro Research Compliance Check, Risk Measurement Dedicate
Slide 16: Operations during COVID
Operations during COVID Transitioned to remote handling UTI Swatantra redirected to Data protection technologies of all critical functions using digital & television platforms. against cyber threats. Adopted Virtual Private Network infrastructure monitoring services through Network Operating Centre
Slide 17: ESG Initiatives
ESG Initiatives • UTI AMC Group is a signatory to United Nations – Principles of Responsible Investing framework • UTI investment team has initiated steps to incorporate ESG progression • Adopted paperless office system, smart e-approval systems • Strong CSR programme focusing on health and educatio
Slide 18: AUM and Market Share
AUM and Market Share INR Billion INR Billion QUARTERLY AVERAGE AUM Equity & Hybrid QAAUM YoY 0.6% YoY 2.4% 1,542 1,552 584 598 1,336 521 SE P 1 9 JUN 2 0 SE P 2 0 Sep 19 Jun 20 Sep 20 Market Share - Quarterly Average AUM Market Share – Equity & Hybrid QAAUM Sep 19 June 20 Sep 20 Sep 19 Sep 20 June 2
Slide 19: Trend in net sales
Trend in net sales INR Billion Yearly Net Sales Quarterly Net Sales 150 150 121 127 100 90 65 100 50 37 24 4 3 50 0 22 18 Equity Etfs & Index Hybrid Income Liquid Total 8 -18 -12 3 4 4 5 5 -50 0 -26 Equity -1 ETFs & Index Hybrid Income Liquid Total -100 -78 -3 -13 -50 -28-21 -4 -150 -141 -62 -62 -15
Slide 20: SIP to remain the cornerstone to AUM performance
SIP to remain the cornerstone to AUM performance LONG TENURE SIP BOOK (1) INR Billion 90% ❑ Our SIP AUM increased by 78% Rs. 16.9 billion, or 17.8%, from Rs. 95 billion as of September 2019 to Rs. 111.9 billion as of September 30, MORE THAN 5 YEARS MORE THAN 10 YEARS 2020 QUARTERLY GROSS SIP INFLOW
Slide 21: Financial Snapshot
Financial Snapshot
Slide 22: Standalone P & L
Standalone P & L INR Million Q2FY21 Q2FY20 %(+/-) H1FY21 H1FY20 YOY % Total Revenue from Operations 2259.50 2180.79 3.61 4360.00 4323.23 0.85 Other Income 104.74 107.36 -2.44 181.93 178.40 1.98 Total Income 2364.24 2288.15 3.32 4541.93 4501.63 0.89 Fee & Commission exp. 11.93 14.02 -14.91 23.81 28.3
Slide 23: Consolidated P & L
Consolidated P & L Q2FY21 Q2FY20 %(+/-) H1FY21 H1FY20 YOY % INR Million Total Revenue from Operations 2760.54 2386.20 15.69 5373.51 4732.01 13.56 Other Income 109.58 135.71 -19.25 200.35 223.23 -10.25 Total Income 2870.12 2521.91 13.81 5573.86 4955.24 12.48 Fee & Commission exp. 5.63 6.78 -16.96 12.
Slide 24: Ratios Consolidated
Ratios Consolidated PAT Margin (%) Return on Equity (%) 40.00 18 39.00 38.00 16 16.22 36.00 15.39 14 14.30 34.00 33.00 32.00 31.00 31.00 12 30.00 10 10.08 28.00 26.00 8 FY18 FY19 FY20 6MFY21 FY18 FY19 FY20 6MFY21 23
Slide 25: Annexure
Annexure
Slide 26: Industry Dynamics - Avg AUM & AUM category
Industry Dynamics - Avg AUM & AUM category …….following the flat growth in fiscal 2021, QAAUMs Avg AUM (Rs. Lakh Cr) are expected to gradually bounce back at ~18% 30 7-Yr CAGR – 17.1% 26.06 27.74 CAGR between Mar-21 and Mar-25. (Source- CRISIL) 24.48 24.70 25 23.05 20 18.29 13.53 15 11.88 8.16 9.05
Slide 27: Industry Dynamics – No of folios and SIP flows
Industry Dynamics – No of folios and SIP flows No. of Folios ~ As per CRISIL, high growth in the SIP AUMs somewhat 10 8.97 9.15 9.33 halted due to the pandemic. However, with recovery in 9 8.25 economic growth, SIP contributions are expected to mark a 8 7.13 comeback from both the retail and institu
Slide 28: Standalone Balance Sheet
Standalone Balance Sheet INR Million Particulars As on Sep 30, 2020 As on Sep 30, 2019 Assets: Financial Assets 26,272.58 23,281.42 Non Financial Assets 4,292.67 4,239.06 Total Assets 30,565.25 27,520.48 Equity & Liabilities: Financial Liabilities 1,985.55 1,943.37 Non Financial Liabilities 1,082.88
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet INR Million Particulars As on Sep 30, 2020 As on Sep 30, 2019 Assets: Financial Assets 29,130.39 26,167.06 Non Financial Assets 4,425.95 4,363.37 Total Assets 33,556.34 30,530.43 Equity & Liabilities: Financial Liabilities 2,097.50 2,056.61 Non Financial Liabilities 1,401.
Slide 30: Breakup of Consolidated Investments
Breakup of Consolidated Investments Total Investments: Rs. 25,066 million Breakdown of Total Investment Venture Funds, Other Equity As on Sep 30, 2020 INR mn etc. 11.4% Investment in UTI MF Schemes 19,371 Offshore Funds 11.3% Equity 375 Arbitrage 4,641 Liquid & Debt 14,355 Offshore Funds 2,825 Mutua
Slide 31: Board of Directors
Board of Directors
Slide 32: Experienced and Independent AMC Board
Option Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra Mr. Edward Bernard Mr. Flemming Madsen ▪ Independent Director & Chairman of the Company ▪ Associate Director ▪ Associate Director ▪ Retired Chairman of LIC ▪ Senior Advisor, T. Rowe Price Group ▪ Vice President at T Rowe Price Gr
Slide 33: Experienced and Independent AMC Board
Option Experienced and Independent AMC Board Mr. Rajeev Kakar Mr. Deepak Chatterjee Ms. Jaya Vaidhyanathan ▪ Independent Director ▪ Independent Director ▪ Independent Director ▪ Over 3 decades of experience in banking and financial Institutions ▪ Retired MD & CEO of SBI Funds Management Ltd. ▪ Presi
Slide 34: THANK YOU
THANK YOU
Slide 35: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer or the recommendation or solicitation of an offer or invitation to purchase or sell any securitie
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