Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q3 FY20 Earnings Presentation
42 slides from Nippon Life India Asset Management's earnings presentation, Jan 24, 2020
Slide 1: Cover letter to stock exchanges
◄!► Nippon Life 1nd1a Asset Management Ltd January 23, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5t h Floor, Dalal Street, Fort, Plot No. C/1 , G Block, Mumbai 400 001 Bandra Kurla Complex, BSE Scrip Code: 540767 Bandra (East), Mumbai 400 051
Slide 2: Investor Presentation Q3 FY20
Investor Presentation Q3 FY20 Goodgetsb~
Slide 3: Key Highlights
Key Highlights Post Transaction witnessed Board Declared Annualized SIP book reversal in AUM growth after Interim Dividend of INR 3 INR 100 bn, from ~ 3.3 mn 4 quarters of decline Per Share SIP accounts FOUR QUARTERS OF DECLINE Digital contribution to total Over 170 institutional Retail AUM Contribu
Slide 4: Brand Launch & Initiatives
Brand Launch & Initiatives / ❖ Nippon Life lndla Asset Management Ltd
Slide 5: New Brand Identity
New Brand Identity Wealth sets you free ~ Nippon India ◄~ Nippon lndla ~ Portfolio Management ~ Alternate Investments • Indian Legacy & Expertise • Nippon Life Pedigree • Fresh & Positive Identity / ❖ Nippon Life lndla Asset Management Ltd 2
Slide 6: On ground Rebranding
On ground Rebranding C:, Nippon r,,j, .t Mutual Fund , , Nippon , i!i Mutual Fund ~• Nippon UJJAIN BRANCH JALGAON BRANCH .... • Nippo n ir ,di • Mutual Fund ◄:► Nippon ,nd1:§ Mutual Fund RATLAM BRANCH JAMNAGAR BRANCH Rebranded within 10 working days ◄~ Nippon Life 1nd1a Asset Management Ltd 3
Slide 7: Brand Initiatives – Ambient Visibility
Brand Initiatives – Ambient Visibility utua Wea~th sets you free - (Formerly Reha nee r iutual Fund) 300 + Branches/Partner Locations / ◄~ Nippon Life 1nd1a Asset Management Ltd 4
Slide 8: Brand Initiatives – Changeover Communication
Brand Initiatives – Changeover Communication 4~ Nippon 1nd1a .,. Mutual Fund Wealth sets yciu free ------------------------------ We've entert'd i, new phase of growth and progre-ss 1n our JourMy, and want to take a minute to share the ReLI ANce ~i~~AL j S n OW deta b with you. Reliance Mutual Fund
Slide 9: Company Snapshot
Company Snapshot / ❖ Nippon Life lndla Asset Management Ltd
Slide 10: Current Snapshot
Current Snapshot One of largest asset manager in India, with 24 years of track record NAM India AUM as of Dec’19 INR 3.10 tn Mutual Funds Managed Accounts International INR 1,997 bn * INR 1,036 bn INR 68 bn Advisory INR 48 bn ••• * 1ft (__) (__) (_ _) (__) (_ _) ~290 Locations ~1,050 Employees ~76,0
Slide 11: Quarterly Performance
Quarterly Performance / ❖ Nippon Life lndla Asset Management Ltd
Slide 12: Green shoots post transaction
Green shoots post transaction Post transaction AUM Growth after 4 quarters of Decline NIMF MAAUM (INR bn) 2,352 5% 2,156 2,171 2,095 2,013 1,970 - 1,983 2,077 2,072 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Oct 7th 2019: “Reliance Mutual Fund” renamed as “NIPPON INDIA MUTUAL FUN
Slide 13: Mutual Fund Assets
Mutual Fund Assets NIMF QAAUM (INR bn) 2,363 2,336 2,226 2,026 2,043 7% 9% 12% 14% 13% 19% 19% 15% 14% 16% 35% 33% 31% 29% 27% 38% 39% 42% 43% 44% Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 ■ Equity ■ Debt ■ Liquid ■ ETFs Equity now contributes 44% of Total AUM QAAUM: Quarterly Average Assets under Manageme
Slide 14: Equity & Fixed Income Assets
Equity & Fixed Income Assets Equity (Incl. ETF) QAAUM (INR bn) 1,157 1,100 1,119 1,027 1,080 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 NIMF Equity Assets (incl. ETF) grew by 9% YoY 1,292 Fixed Income QAAUM (INR bn) 1,211 1,022 455 873 875 432 337 275 322 837 779 685 598 553 Dec'18 Mar'19 Jun'19 Sep'19 Dec'
Slide 15: Focus on Retail & Small towns
Focus on Retail & Small towns Retail AAUM / Total AAUM (%) NIMF 26% Industry 20% HDFC 19% Birla 19% ICICI 15% SBI 14% Higher composition of Retail Assets in AUM at 26% V/S Industry 20% Source: AMFI / ❖ Nippon Life lndla Asset Management Ltd 10
Slide 16: Retail Assets
Retail Assets Retail AAUM (INR bn) 542 557 546 519 519 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 “Retail Investor Classification” has been changed from INR 0.5 mn to INR 0.2 mn as per the guidelines issued by AMFI ❖ Nippon Life lndla Asset Management Ltd Source: Internal, AMFI / 11
Slide 17: Beyond cities (B-30) Contribution
Beyond 30 cities (B-30) Contribution Higher AUM % sourced from B-30 locations as compared to Industry B-30 AAUM / Total AAUM (%) NIMF 19 Industry 16 B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence ❖ Nippon Life lndla Asset Management Ltd Source: AMFI / 1
Slide 18: Geographical De-risking
Geographical De-risking Top 5 Cities Contribution*(%) Beyond 15 Cities Contribution* (%) ICICI 71% NIMF 27% SBI 69% Industry 26% HDFC 66% SBI 20% Industry 62% HDFC 19% NIMF 56% ICICI 15% - - ~ - -- ~ Lower concentration of assets from Top 5 I Higher Penetration in Smaller cities and I cities towns -
Slide 19: Systematic Investment Plan – Long & Stable Inflows
Systematic Investment Plan – Long & Stable Inflows SIP Monthly Flows 9.00 3.3 3.5 8.00 2.9 3.0 2.3 7.00 2.5 6.00 2.0 5.00 4.00 1.4 8.42 8.38 1.5 3.00 6.49 1.0 2.00 4.12 0.5 1.00 - - Dec'16 Dec'17 Dec'18 Dec'19 - SIP Book (INR bn) - SIP Count (mn) Annualized SIP book of over INR 100 bn Avg. ticket si
Slide 20: Distribution
Distribution / ❖ Nippon Life lndla Asset Management Ltd
Slide 21: Strong Distribution
Strong Distribution Empaneled ~ 600 New Distributors in Q3 FY20; total base at ~ 76,000 Banks embank Deutsche Bank [Z] fl1c1c1Bank Standard 74 Chartered ~ - - - - - HDFC BANK A AXIS BANK. National - Distributors BAJAJ 94 CAPITA K A RVYIII [• HDFC securities Alternate (incl. PSU banks) I ~3mfj~ 111h
Slide 22: Leveraging Partnership with IFA
Leveraging Partnership with IFA Distribution Mix* IFA Assets ■ Independent Financial Advisors IFA AUM (INR bn) ■ Banking Distributors ■ National Distributors 20% 622 575 585 55% 25% Jun'19 Sep'19 Dec'19 Derisked Distribution Model No Single distributor contributes more than 5.3% of AUM End of Period
Slide 23: Digital Business – Driven by Innovation
Digital Business – Driven by Innovation Lumpsum & New SIP Registration Digital Purchases1 (Million) FYTD 18-19 0.8 38% FYTD 19-20 1.1 Digital contribution to total NIMF business transactions > 40% Digital Lumpsum Purchase Transactions grew 32% YoY New Digital SIP registrations grew 27% YoY Acc
Slide 24: Digitalizing Ecosystem
Digitalizing Ecosystem (______) Digitally powered Industry Platforms ~~~ ~11;Y~ 1( Manpower Intensive e-Distribution ' " Investwell -------------~ Digitally Enabled Distribution ) l PaYtm Money ~ ETMONEY ~obiKwil< Groww ~ EI MONEY ----- ~biKwik Prudent New Purchase Journey & Industry Busin~ first Mo
Slide 25: Other Business
Other Business / ❖ Nippon Life lndla Asset Management Ltd
Slide 26: ETF - Future Ready
ETF - Future Ready Large ETFs product suite ~76% ~42% ~16% Volume Share Share of folios Market Share Only AMC in India with more than 18 yrs track record in managing ETFs Highest investor folios in Industry About 42% Market Share of ETF folios as on Dec’19 About 76% Market Share in ETF Volum
Slide 27: Nippon India Alternate Investments (AIF)
Nippon India Alternate Investments (AIF) At Present Offer Category II & Category III AIFs Real Estate: Nippon India Yield Maximiser AIF Series, Nippon India Yield Plus AIF Series Equity: Nippon India Equity Opportunities AIF Series Credit: Nippon India Yield Opportunities AIF Tech/VC Fund
Slide 28: Offshore Business
Offshore Business Manage & Advise AUM of ~ INR 116 Bn Leveraging Nippon Life’s Insurance Network as on 31st Dec 2019 Particulars Amount in INR Bn Advisory 48 Nissay Short Term Indian Bond Bualuang Bharata Fund Nissay India Equity Selection Fund Managed 68 Nissay Indian Bond Mother Fund Total 116 Glo
Slide 29: Increasing Global Presence
Increasing Global Presence Japan Argentina e Strategic Partnership • Local- Distributor / ◄~ Nippon Life ,nd,a Asset Management Ltd 22
Slide 30: Leaders in Investor Education
Leaders in Investor Education EDGE Learning Academy : ( Q3 - Oct’19 to Dec’19 ) Investor Education Unique Mobile App MFx Locations 184 T-30 Programs 99 Programs 26 Cities B-30 8,000+ Investors 85 Programs 56 Towns Dedicated Investor Education App MFx / ◄) Nippon Life 1nd1a Asset Management Ltd 23
Slide 31: About Nippon Life
About Nippon Life / ❖ Nippon Life lndla Asset Management Ltd
Slide 32: About Nippon Life Insurance
About Nippon Life Insurance Fortune 500 company (Rank 125 in 2019)1 Japan’s largest private life insurer & one of the largest in the world2 Total assets over US$ 700 bn3 50 Asset Management related operations & 21 Insurance related operations Globally3 Presence in India ¢ Nippon 1nd1a Mutual
Slide 33: Nippon Life Group
Nippon Life Group Nippon Life Group Nippon Life HISSAY Domestic Insurance Business Asset Management Business Overseas Insurance Business Taiju Life Nippon (82.6%) Reliance Nippon Life India Asset Revenues from insurance and reinsurance premiums (FY2019): ~ ¢ Nippon ,ncl,a r,,lutual Fund ~ Wt•U•:ileU
Slide 34: Financial Overview
Financial Overview / ❖ Nippon Life lndla Asset Management Ltd
Slide 35: Financial Summary - As per IND AS (9M)
Financial Summary- As per IND AS Consolidated INR in mn Particulars 9M FY20 9M FY19 Revenue from Operations 9,285 11,354 Operating Expenditure 5,112 7,643 Fee & Commission Expenses 507 1,955 Employee benefits expense 2,495 2,167 Finance cost 52 - Other Expenses 1,815 3,257 Depreciation 243 264 Core
Slide 36: Financial Summary - As per IND AS (Q3)
Financial Summary- As per IND AS Consolidated INR in mn Particulars Q3 FY20 Q3 FY19 Revenue from Operations 3,031 3,499 Operating Expenditure 1,670 2,407 Fee & Commission Expenses 120 729 Employee benefits expense 813 753 Finance cost 19 - Other Expenses 627 835 Depreciation 91 90 Core Operating Pro
Slide 37: Dividend History
Dividend History Return on Equity of 19% in FY19 Earnings Per Share (INR) Dividend Payout (INR Bn) 4.42 4.42 7.62 7.94 6.41 6.85 2.98 2.98 FY 16 FY 17 FY 18 FY 19 FY 16 FY 17 FY 18 FY 19 Total Dividend paid INR 6 per share in FY19 91% of FY19 Earnings shared with Shareholders Paid cumulative dividen
Slide 38: Board Of Directors
Board Of Directors / ❖ Nippon Life lndla Asset Management Ltd
Slide 39: Profile of Board Members
Profile of Board Members Gen. V. P. Malik (Retd.) (Independent Director) Held Chief of the Army Staff position (Oct’1997-Sep2000) in Indian Army Ms. Ameeta Chatterjee (Independent Director) Over 18 years of corporate finance experience in developing, managing and executing infrastructure projects acr
Slide 40: Profile of Board Members
Profile of Board Members Mr. Minoru Kimura (Associate Director) Executive Officer, Head of Asia Pacific at Nippon Life Insurance Company Mr. Akira Shibata (Associate Director) General Manager / Global Business Planning Department at Nippon Life Insurance Company Mr. Sundeep Sikka (Associate Director
Slide 41: 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
Slide 42: Thank you for your time!
Thank you for your time! Goodgetsb~
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