Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Reliance Nippon Life Asset Management — Q4 FY2019 Earnings Presentation
45 slides from Nippon Life India Asset Management's earnings presentation, April 2019
Slide 1: Investor Presentation - Q4 FY19
NIPPON LIFE ASSET RELIANCE MANAGEMENT LTD ~ Nippon Life Company on Life Grow Investor Presentation — Q4 FY19
Slide 2: Key Highlights
Key Highlights > Cc Ss One of the largest AMCs in India - Managing AUM of INR 4.2 tn Net Profit at INR 1.51 bn for Q4 FY19: grew by 34% & INR 4.86 bn for Profit FY19 grew by 7% Largest Retail AMC - INR ~900 bn Retail Received highest share of Retail incremental assets — INR 167 bn Annualized SIP Boo
Slide 3: RNAM Snapshot
RNAM Snapshot NIPPON LIFE ASSET 3 FANS MANAGEMENT LTD & Nippon Life Company... vets tehusen Reliance Coie & Nippon ie Grou i
Slide 4: Snapshot
Snapshot RNAM is one of largest asset manager in India, with 23 years of track record RNAM AUM as of MAR'19 INR 4.22 tn Mutual Funds Managed Accounts Tareeaeliceyarel| INR 2,278 bn INR 1,913 bn INR 31 bn* Advisory INR 55 bn Trusted Asset Manager - Holding Fund Mandates from swe EPFO ESIC pRda PFRDA
Slide 5: RNAM Quarterly Performance
RNAM Quarterly Performance NIPPON LIFE ASSET 5 RELIANCE ; F Semen BrP Nippon Life Company 51 vanure between Raianea Capital & Nippen life Group
Slide 6: Leading asset management player
6 Leading asset management player RNAM AUM (INR Bn) m MF mPension m Managed sm Offshore 28 3.964 27 4,074 27 404g 3) 4.188 32 33 34 2,318 2,238 2,272 Mar'l8 Jun'ls Sep'l8 Dec'l8 4,221 2,278 Mar'l9 MF contributes 54% of overall AUM RNAM AUM one of the highest in Industry - INR 4.22 Tn RELIANCE NIPPON
Slide 7: Leading asset management player
Leading asset management player RMF QAAUM (INR Bn) 2,448 2,363 Mar'l8 Jun'l8 Sep'l8 Dec'l8 Mar'l9 mEquity mDebt mliquid mETFs Composition of Equity Assets Increased by 300 bps YoY RELIANCE NIPPON LIFE ASSET QAAUM: Quarterly Average Assets under Management ‘ il Nippon Life Company 54 anne betwean Rai
Slide 8: Equity Assets (Incl. ETF)
8 Equity Assets (Incl. ETF) Equity QAAUM (INR bn) 1008 1027 Mar'l8 Jun'l8 Sep'l8 Dec'l8 Mar'l9 RMF Equity Assets grew by 13% YoY RMF Folio Count (mn) 91 Mar'l8 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Added ~ 0.9 mn folios in last 12 months NIPPON LIFE ASSET ReLIANCce ; . | ReLANce | Neer: Nippon Life Company 5.
Slide 9: Focus on Retail & Small towns
Focus on Retail & Small towns Retail MAAUM (INR bn) 899 780 897 830 732 Mar'l8 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Highest Retail Assets in the Industry NIPPON LIFE ASSET Source: AMFI 9 ReLIANCce 7 ‘ lad Nippon Life Company 5... venture between Reliance Capital & Nippon Life Group
Slide 10: Higher Contribution from Retail Assets
Higher Contribution from Retail Assets Retail have higher share of Equity Assets Retail AAUM growth (INR bn) Retail AAUM / Total AAUM (%) Ta 0Ulti(‘<‘i‘ OCOCOC‘CédD RM TT 39°. 9 SBI 121 Industry 26% HDFC 24% HDFC 109 Birla 21% Birla 90 IcIcl 20% ICICI 89 SBI 20% RMF Retail AAUM up 22.8% vs Industry
Slide 11: 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 (%) Industry 15 B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence Source: AMFI NIPPON LIFE ASSET 11 RELIANCE ; F Neer: Nippon Life
Slide 12: 10.0 3.5 9.00 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 4.00 3.00 1.0
10.0 0 3.5 9.00 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 4.00 3.00 1.0 2.00 0.5 1.00 - - 12
Slide 13: Distribution
Distribution NIPPON LIFE ASSET 13 RUAN SS vanacement itp & Nippon Life Company... vene beeen tance Cop Ngpon Ue Geup
Slide 14: Strong Distribution
Strong Distribution Empaneled ~ 8,100 New Distributors in FY19; total base at over 73,400 Banks citibank Deutsche Bank @Aicici Bank Standard @& Gx» Chartered &Q Ht} HDFC BANK | Ayrrs sani National Distributors ax=D OGak KARVY|I| SEER Alternate (incl. PSU banks} ee @ | fe site gfear des stim asthe D
Slide 15: Leveraging Partnership with IFA
Leveraging Partnership with IFA Distribution Mix* Growing IFA Base = Independent Financial Advisors IFA AUM (INR Bn) = Banking Distributors National Distributors 637 585 484 Mar'l7 Mar'l8 Mar'l9 *Excluding Direct AUM As on Mar'l9 Derisked Distribution Model No Single distributor contributes more tha
Slide 16: Digital the way Ahead
Digital the way Ahead RMF Digital Purchase + New SIPs (‘000) FY18 739 OQ) 1of every 3 Purchase + SIP concluded on RMF Digital Q) RMF Digital clocking ~1.1mn purchase+SIP Q Digital Purchase + SIP witnessed a Growth of 47% y.o.y In FY19, RMF processed one online purchase transaction including (New SIP
Slide 17: Conversational Commerce
Conversational Commerce A cutting-edge solution that allows RMF investors to transact on the Simply Save App through a very natural, simple, easy and intuitive medium —- the human voice SALIENT POINTS India’s first Al powered, transactional oriented, Voice | gs} Interface Your voice is our command!
Slide 18: WhatsApp for Business
WhatsApp for Business Reliance Mutual.. me & MUTUAL Dear Partner, RELIANCE = Funp eran We thank you for being a pioneer in embracing technology in this ever : piel spell a tae Launched WhatsApp for Business Reliance Mutual Fund ai for effective communication with We at Reliance MF endeavor to enable
Slide 19: With Partners With Investors With Franchisees
With Partners With Investors With Franchisees 19
Slide 20: Other Business
Other Business NIPPON LIFE ASSET 20 BSUS Manacemenr to & Nippon Life Company... vets tehusen Reliance Coie & Nippon ie Grou i
Slide 21: Offshore Business
Offshore Business Managed & Advise AUM of INR 86 Bn a Representative Subsidiaries RAMS Equities Portfolio Fund — UCITS Cohesion Best Idea’s Fund — SIF* Reliance Emergent Distribution Service IMSF — Equity Opp. Fund Feeder . enter sa cone India Fund across Middle East WIF - India Consumption Fund RAM
Slide 22: Global Presence
Global Presence 22 a @ Mauritius (Subsidiary) Added a Strategic & Distribution Partner in Australia and a Strategic Partner in Japan for the year 2018-19 @ iocal-pistributor @ strategic Partnership NIPPON LIFE ASSET MANAGEMENT LTD Spoon tie Comper Nippon Life Company Joint Venture between Relianea C
Slide 23: ETF - Future Ready
ETF - Future Ready Experience Only AMC with 18 years of experience in managing ETFs Innovator in Gold ETFs & Money Market ETFs Innovators First AMC to launch CPSE ETF jointly in partnership with GOI as part of divestment program Largest bouquet of 17 ETFs in the industry across Equities, Debts & ETF
Slide 24: Alternate Investment Fund (AIF)
Alternate Investment Fund (AIF) O At Present Offer Category Il & Category Ill AlFs across = Real Estate: Reliance Yield Maximiser AIF Series, Reliance Yield Plus AIF = — Equity: Reliance Equity Opportunities AIF Series = Credit: Reliance Yield Opportunities Q Launched / incubated the Industry’s firs
Slide 25: Other Initiatives
Other Initiatives NIPPON LIFE ASSET 25 BSUS Manacement to & Nippon Life Company... vets tehusen Reliance Coie & Nippon ie Grou i
Slide 26: Customer Outreach
Customer Outreach ¢ Business Building o> SOYA OHAN MUKTINALA, ¢ Engagement * Social Media Presence 14,18,549 1,00,188 1,00,089 Integrated Communication across multiple touch points NIPPON LIFE ASSET 26 NSS MANAGEMENT LTD & Nippon Life Company 5... venture between Reliance Capital & Nippon Lite . i
Slide 27: Brand Initiatives
Brand Initiatives Cons! Large Cap Fund Inve: ifall your chess Queens: vous Reliance Large Cap Fund Pa son Ne het A Oe ubne wd dec nee edly ‘Maru Fune tesiments oe sub o mane aks, rod NIPPON LIFE ASSET 27 RELIANCE ; . Neer: Nippon Life Company 5... venture between Reliance Capital & Nippon Life Group
Slide 28: Stable & Experienced Team
Stable & Experienced Team Dedicated Credit Leadership Team Strong Investment Team comprising of 68 Research team of 8 Avg, tenure of 10 Yrs members members Awards & Recognition AON. AON. India’s Best Companies sal oe To Work For 2018 SESTEMPLOYER BESTEMPLOVER ‘Tite, Econowie Tints NIPPON LIFE ASSET
Slide 29: 602 Programs 30 Cities 710 Programs
1,312 T-30 Programs 602 Programs 30 Cities B-30 67,900+ Investors 710 Programs 194 Towns 29
Slide 30: Regulatory Update
Regulatory Update NIPPON LIFE ASSET 30 ARTA eS manacement L7D & Nippon Life Company... vene beeen tance Cop Ngpon Ue Geup
Slide 31: Regulatory Update
Regulatory Update Circular Issued with effect from October 22, 2018 Q No Upfront Commission on Lumpsum investment Q Upfront Commission allowed only on SIP from New investors Q All Scheme related expenses to be paid from Scheme Only, and not from AMC Q Incentive for inflows from B-30 cities now be ba
Slide 32: Financial Overview
Financial Overview NIPPON LIFE ASSET 32 RELIANCE a r Nees: HP Nippon Life Company 5... venture between Reliance Capital & Nippon Life Group
Slide 33: IND AS Transition
IND AS Transition RNAM has adopted Indian Accounting Standards (IND AS) with effect from Ist April 2018 Results of Q4 FY19 & FY19 are prepared as per IND AS requirements Accordingly previous year quarter figures have been restated NIPPON LIFE ASSET 33 RELIANCE ; F SOR eee Nippon Life Company Joint V
Slide 34: IND AS Transition
IND AS Transition Key Changes IGAAP IND AS Management Revenue No change No Change Fees Investment Other Income Cost Basis Fair Value Income Distribution Expense No Change No Change Expense . Black - Scholes ESOP Expense Intrinsic Method Pricing Model ; _. Impairment Asset Mgt. Rights Expense Amortis
Slide 35: Financial Summary- As per IND AS
Financial Summary- As per IND AS Consolidated INR in Mn. [Particulars es Revenue from operations 14,786 15,918 Operating Expenditure 9,496 10,930 Fee & Commission Expenses 2,583 3,105 Employee benefits expense 2,935 2,572 Other Expenses 3,877 5,146 Depreciation & Finance Charges 101 107 Core Operati
Slide 36: Financial Summary- As per IND AS
Financial Summary- As per IND AS Consolidated INR in Mn. pParticvlors er |v Revenue from operations 3,432 4,381 Operating Expenditure 1,854 2,865 Fee & Commission Expenses 628 1,034 Employee benefits expense 768 818 Other Expenses 622 1,175 Depreciation & Finance Charges (164) (162) Core Operating P
Slide 37: Consolidated Financials - As per IND AS
Consolidated Financials - As per IND AS INR in Mn. As at 31* As at 31* Financial Assets Non Financial Assets Total Assets 23,603 21,276 4,155 5,949 27,758 27,225 st st Liabilities & Equity asa Financial Liabilities Non- Financial Liabilities Equity Total Liabilities & Equity NIPPON LIFE ASSET 37 AS
Slide 38: Reconciliation of consolidated profit with previous GAAP
Reconciliation of consolidated profit with previous GAAP INR in Mn. Profit Reconcliation forthe period ended Mar 3" 2018 | a4 FB | FYIS Net profit after tax as reported under previous GAAP 1,618 5,221 Adjustment increasing/(decreasing) net profit after tax as reported under previous GAAP : Fair valu
Slide 39: Ind AS - Equity Reconciliation with previous GAAP
Ind AS - Equity Reconciliation with previous GAAP INR in Mn. As at 31st March 2018 Total Equity (shareholder's funds) as per previous GAAP 22,865 Adjustments Investments in MF / Pref. Shares - Fair value through P&L 572 Reversal of Fair Value Gain on Equity Investment - FVOCI 19 Employee Share Based
Slide 40: Dividends & ROE
Dividends & ROE Return on Equity of 19% in FY19 Earnings Per Share (INR) Dividend Payout (INR Bn) FY19 FY 16 FY 17 FY 18 FY 19 Board Declared Second Interim Dividend of INR 3 Per Share on Apr 29", 2019 91% of FY19 Earnings shared with Shareholders Paid cumulative dividend of INR 20+bn in last 6 fina
Slide 41: Board Of Directors
Board Of Directors NIPPON LIFE ASSET 41 RELIANCE = r Nees: HP Nippon Life Company 5... venture between Reliance Capital & Nippon Life Group
Slide 42: Profile of Board Members
Profile of Board Members Mr. Kanu Doshi (Independent Director) Dean - Finance, at Welingkar Institute of Management, Mumbai Mr. S. C. Tripathi (Independent Director) Held several senior level posts including Principal Secretary, Finance and Industry in Govt. of UP, Joint Secretary (Economic Affairs)
Slide 43: 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 44: 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 45: Thank you for your time
NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD ~ Nippon Life Company Thank you for your time.
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