Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q2 FY2021-22 Earnings Presentation
56 slides from Uti Asset Management's earnings presentation, Oct 29, 2021
Slide 1: Exchange filing cover letter: Investors Presentation
UTI Asset Management Company Ltd. YEARS NMWUM l•fflH UTI Mutual Fund Ref: UTI/AMC/CS/SE/2021-22/0134 Date: 29th October, 2021 National Stock Exchange of India Limited BSE Limited Exchange Plaza Plot No. C/1 Phiroze Jeejeebhoy Towers G Block Bandra-Kurla Complex Dalal Street Bandra (East) Mumbai - 40
Slide 2: Investor Presentation UTI Q2 FY21-22
Investor Presentation UTI Q2 FY21-22 Conviction Capabilities Commitment Private and Confidential | Mumbai, India | September 2021
Slide 3: UTI AMC – Customer Centric Global Asset Management Firm
UTI AMC – Customer Centric Global Asset Management Firm Pioneer in India • Oldest Mutual Fund in India • First to launch Equity Mutual Fund, Unit Linked Insurance Plan, Children’s Plan 12.62 Lakh Crore INR in AUM* • Focused Solely on Investment Management and related services • Presence across vario
Slide 4: Our Vision and Mission
Our Vision and Mission VISION To be the most preferred Asset Manager MISSION Most trusted brand, admired by all stakeholders The largest Money Manager with global presence The best in class customer service provider The most preferred employer The most innovative wealth creator A socially responsibl
Slide 5: Focus is Essence of our Business
Focus is Essence of our Business Long - Term Success Performance-driven with purpose Investment Investors Co-operation and Trust and Thinking Long- Excellence First Collaboration Mutual Respect Term Focus of our existence Investors success leads to Bringing out the best ideas Long Term relationships
Slide 6: Our Continuous Endeavour is to
Our Continuous Endeavour is to Build and retain highly competent and Build excellent investment systems and Motivated investment team across asset classes processes. Further build our distribution capabilities and Execute on key operations and technology strengthen existing relationship with our par
Slide 7: Healthy Mix of Shareholders
Healthy Mix of Shareholders 0.94% 2.80% 4.74% Mutual Funds 22.99% 15.04% 8.29% 15.23% Retail Shareholders 9.99% Foreign portfolio Investors Others 9.99% Alternate Investment Funds 9.99% UTI AMC is a professionally managed T. Rowe Price International Ltd. – a global company with no identifiable promo
Slide 8: Key Performance Indicators
Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 12,62,546 Crore INR 2,08,971 Crore INR 10,53,575 Crore Market NPS AUM MF AUM Equity + Hybrid AUM Share 27.98% 5.77% 5.31% Revenue EBITDA PAT Profitability 11% QoQ 18% QoQ 28% QoQ growth growth growth Flows & Gross
Slide 9: UTI Group
07 UTI Group 07
Slide 10: UTI AMC Structure
UTI AMC Structure UTI AMC Ltd. Investment Manager Support Services Investment Manager PMS (includes EPFO, 100% Subsidiaries to UTI Mutual Fund to SUUTI to Offshore Funds CMPFO, ESIC and Postal Life Funds) UTI International Ltd Manager for International (Offshore) Funds UTI Venture Fund Management Co
Slide 11: UTI Group Assets Under Management have increased by 21%
UTI Group Assets Under Management have increased by 21% September 2020 September 2021 1,159 (0%) 1,136 (0%) 1,55,190 (15%) 1,43,791 (14%) 1,86,716 (15%) 2,08,971 (16%) 16,278 (1%) 34,536 (3%) Total INR Total INR 10,43,138 Crore 12,62,546 Crore 7,26,721 (70%) 8,31,185 (66%) UTI MF PMS UTI Capital UTI
Slide 12: Total Mutual Fund QAAUM has grown by 35% YOY
Total Mutual Fund QAAUM has grown by 35% YOY Total QAAUM INR Crore Equity + Hybrid QAAUM INR Crore YoY 34.7% YoY 49.3% 89,210 2,08,971 1,82,853 73,118 1,55,190 59,765 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Market Share - Quarterly Average AUM Market Share – Equity & Hybrid QAAUM 5.62% 5.7% 5.77%
Slide 13: Equity and Hybrid – Cornerstones of Growth
Equity and Hybrid – Cornerstones of Growth Equity QAAUM INR Crore Hybrid QAAUM INR Crore YoY 27.1% YoY 60.8% 63,177 26,033 50,751 22,367 20,474 39,291 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 4.87% 5.15% 5.19% 6.75% 6.14% 5.61% Sep 20 Mar 21 S
Slide 14: Income and Liquid QAAUM finding foothold
Income and Liquid QAAUM finding foothold Income QAAUM INR Crore Liquid QAAUM INR Crore YoY -1.4% YoY 5.0% 47,288 24,092 19,695 19,427 45,051 43,062 Sep 20 Mar 21 Sep 21 Sep 20 Mar 21 Sep 21 Market Share – Income QAAUM Market Share – Liquid QAAUM 2.47% 2.56% 2.26% 7.23% 7.12% 6.94% Sep 20 Mar 21 Sep
Slide 15: Passive Funds Gaining Traction
Passive Funds Gaining Traction Index & ETFs QAAUM INR Crore YoY 72.9% 53,046 42,581 30,679 Sep 20 Mar 21 Sep 21 Market Share – Index & ETFs QAAUM 13.39% 13.49% 13.35% Sep 20 Mar 21 Sep 21 Source: AMFI, Internal. 13
Slide 16: Trend in Net Sales
Trend in Net Sales Yearly Net Sales 12,565 INR Crore 8,985 6,804 Equity & 5,308 Income Total Hybrid 1,203 (752) (1,181) FY 2019-2020 (1,418) ETFs & Index Liquid FY 2020-2021 (7,750) (14,137) Quarterly Net Sales 12,745 INR Crore 12,134 Q2FY22 7,774 7,128 Q1FY22 5,832 Q4FY21 4,473 4,248 Q3FY21 2,346 2
Slide 17: Key Business Focus Areas
Key Business Focus Areas Focus on SIP Geographical Strong growth Spread Across Financial the Country Results and Balance Sheet Growth of Prudent International, Investment Leveraging Retirement Management Digital and Alternate Process Adoption Business 15
Slide 18: Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Internal & External Audit team, Regular Compliance • Product development Check, Dedicated Risk Management Team process • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & Mac
Slide 19: Investment Management Process
1. b) Investment Management Process Equity Investment Process Fixed Income Investment Process Investment Process Approach • In house research team • Key objective is yield and duration management • Proprietary framework – qualitative & quantitative • Achieved through combination of top-down and bott
Slide 20: Embedding ESG considerations into our Investment Decisions
1. c) Embedding ESG considerations into our Investment Decisions • At UTI AMC, we believe in promoting good Environment, Social & Governance (ESG) standards in the companies we invest in and consider this as an essential part of our ownership responsibilities. • We have adopted a formal stewardship
Slide 21: SIP to remain the cornerstone for AUM performance
2. SIP to remain the cornerstone for AUM performance Long Tenure SIP Book(1) Monthly Gross SIP Inflow (INR Crore) 450 421 397 400 378 339 348 350 327 334 More than 300 278 291 290 264 10 Years 81% 253 251 250 200 150 100 More than 91% 50 5 Years 0 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr
Slide 22: Enabling Business Digitally
3. a) Enabling Business Digitally 24x7 Digital Channels Assisted Journeys integrated Building Community • Access at your convenience anytime anywhere • Customer service for Product & Investment • Active engagement on multiple touch points across enquiry- Inbound, Outbound & Email support Social Medi
Slide 23: Digital Client Acquisition Cycle
3. b) Digital Client Acquisition Cycle Investor Journey Reach Act Convert Engage Submit a Lead Invest Via Mobile App Remarketing Search via Google, SEO Social Facebook, Media Email/SMS/ YouTube Invest Now Invest Via Online Portal 1 Platforms WhatsApp notification Internet Retargeting Promote Request
Slide 24: Acceptance of digitization reflected in growing online transactions
3. c) Acceptance of digitization reflected in growing online transactions Quarterly Online Gross Sales as % of Total Gross Sales 98.00% Number of purchase transactions through Digital 96.00% 95.40% grew by 135.8% in Q2FY22 as compared to 95.15% 94.91% Q2FY21. 94.39% 94.00% 92.80% 92.00% Number of di
Slide 25: Steps to increase digital presence are paying off
3. d) Steps to increase digital presence are paying off Number of Digital Purchase Transaction (in Lakhs) 45 41.4 40 35 For Customers 30 26 25 22.38 • Seamless accessibility through app 20.1 20 • Complete digitally-enabled KYC 14.9 15 process 10 5 0 For Distributors FY 18 FY 19 FY 20 FY 21 Q2 FY 22
Slide 26: Geographical Reach Across the Country
4. a) Geographical Reach Across the Country J&K 1 166 UFCs Himachal Pradesh 1 Uttarakhand Chandigarh 3 1 Haryana 5 Delhi 5 1,426 UTI AMC Rajasthan Uttar Pradesh Assam Employees* 14 4 10 Bihar Meghalaya 5 1 Tripura 1 Gujarat West Bengal Madhya Pradesh 15 5 13 Chhattisgarh 772 Sales Team 3 Odisha 6 Ma
Slide 27: Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 10% Total 28% 29% Sep’ 21 Mar’ 21 Sep’ 20 29% QAAUM 63% 62% 61% Direct MFD Bank & Distributors 10% 9% 10% 33% 32% 30% Equity + Hybrid Sep’ 21 Mar’ 21 Sep’ 20 QAAUM 57% 59% 60% Source: RTA Data 25
Slide 28: Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities MAAUM Sep’ 21 B30 B30 16% 23% UTI Mutual Industry Fund T30 T30 77% 84% Improved awareness about investing in financial Our broad client base also provides us with a products vis a vis traditional investment number of opportunities, including cross-selling d
Slide 29: UTI International Ltd. – Stellar performance during the year
5. a) UTI International Ltd. – Stellar performance during the year Assets under management increased by 112% from INR 16,278 Crore as of 30th September 2020 to INR 34,536 Crore as of 30th September 2021 Three Office Locations – Singapore, Dubai and London with a total of 26 staff across 7 nationalit
Slide 30: UTI Retirement Solutions Ltd. – Leading from the front
5. b) UTI Retirement Solutions Ltd. – Leading from the front % 100% subsidiary PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 27.98% of Industry AUM as on 30th September 2021 UTI Retirement Solutions has shown AUM growth of 30% from INR 1,
Slide 31: UTI Capital – Expanding the Business Portfolio
5. c) UTI Capital – Expanding the Business Portfolio % 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business Currently manages 2 active private debt funds (UTI Structured Debt Opportunities Fund I and UTI Structured Debt Opportunities Fund II) with an AU
Slide 32: Investments and Initiatives across the organization
Investments and Initiatives across the organization Research Investment management process through dynamic third-party software and additional investments to improve internal and external interactions to collaborate frequently with company management, sell side analysts, other industry experts and m
Slide 33: ESG Initiatives
ESG Initiatives • Initiated ESG framework development exercise for integrating essential ESG aspects into business operations • Framework to be based on international standards and help in strengthening existing management systems • Created Materiality Map by identifying key ESG aspects and prioriti
Slide 34: Modernizing our technology over multiple years
Modernizing our technology over multiple years 2016-2020 2021-2023 • Plan for movement of On premise data centre • Set Cloud first and SaaS first Objective • Adoption of Containerized deployment model to reduce Infrastructure • Engaged Industry leading technology partner for cost , increase availabi
Slide 35: Modernizing our technology over multiple years
Modernizing our technology over multiple years 2016-2020 2021-2023 • Using dynamic third party software for investment management process • Fund Accounting and Trade Management Research • Core Data Distribution • Wide range of information both domestic and international domain • Migrated Research Fu
Slide 36: Financial Snapshot
Financial Snapshot| UTI Mutual Fun, Haq, ek bektar zin
Slide 37: Consolidated Statement of Profit & Loss – Half Yearly Earnings
Consolidated Statement of Profit & Loss – Half Yearly Earnings INR Crore Particulars H1 FY 22 H1 FY 21 %(+/-) Total Revenue from Operations 724 537 35% Other Income* 5 3 67% Total Income 729 540 35% Fee & Commission expenses 1 1 -- Employee benefit expense 195 189 3% Depreciation & Amortization expe
Slide 38: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR Crore Particulars Q2 FY 22 Q2 FY 21 %(+/-) Total Revenue from Operations 380 276 38% Other Income* 3 2 50% Total Income 383 278 38% Fee & Commission expenses 1 1 -- Employee benefit expense 100 91 10% Depreciation & Amortization expens
Slide 39: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR Crore Particulars Q2 FY 22 Q1 FY 22 %(+/-) Total Revenue from Operations 380 344 10% Other Income* 3 2 50% Total Income 383 346 11% Fee & Commission expenses 1 1 -- Employee benefit expense 100 94 6% Depreciation & Amortization ex
Slide 40: Standalone Statement of Profit & Loss – Half Yearly Earnings
Standalone Statement of Profit & Loss – Half Yearly Earnings INR Crore Particulars H1 FY 22 H1 FY 21 %(+/-) Total Revenue from Operations 548 436 26% Other Income* 1 1 -- Total Income 549 437 26% Fee & Commission expenses 4 2 100% Employee benefit expense 175 172 2% Depreciation & Amortization expen
Slide 41: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR Crore Particulars Q2 FY 22 Q2 FY 21 %(+/-) Total Revenue from Operations 273 226 21% Other Income* 0 1 (100%) Total Income 273 227 20% Fee & Commission expenses 2 1 100% Employee benefit expense 90 82 10% Depreciation & Amortization expe
Slide 42: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR Crore Particulars Q2 FY 22 Q1 FY 22 %(+/-) Total Revenue from Operations 273 276 (1%) Other Income* 0 0 -- Total Income 273 276 (1%) Fee & Commission expenses 2 2 -- Employee benefit expense 90 85 6% Depreciation & Amortization expe
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR Crore Particulars Q2 FY 22 Q2 FY 21 %(+/-) H1 FY 22 H1 FY 21 %(+/-) MF Fees 220 174 26% 426 310 37% PMS Fees 7 5 40% 13 9 44% SUUTI Support Service Fees 2 2 -- 5 5 -- POP Fees & others 1 0 -- 1 1 -- Sale of Services - UTI AMC Standalone 230 181 27% 445 32
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet INR Crore Particulars H1 FY 22 H1 FY 21 %(+/-) Assets: Financial Assets 3,305 2,913 13% Non Financial Assets 434 435 0% Total Assets 3,739 3,348 12% Liabilities & Equity: Financial Liabilities 232 201 10% Non-financial Liabilities 136 132 3% Equity 3,371 3,006 12% Total Li
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet INR Crore Particulars H1 FY 22 H1 FY 21 %(+/-) Assets: Financial Assets 2,789 2,627 6% Non Financial Assets 427 422 1% Total Assets 3,216 3,049 5% Liabilities & Equity: Financial Liabilities 213 198 8% Non-financial Liabilities 99 101 (2%) Equity 2,904 2,750 6% Total Liabili
Slide 46: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) 13 13 45 YE FY 20 45 YE FY 19 32 32 Operating Revenue Operating Expenses PAT Margin 12 17 YE FY 21 44 H1 FY 22 43 32 26 44
Slide 47: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Period Ended on September 2021 For the Period Ended on September 2020 Particulars (GBP in ‘000) INR Crore (GBP in ‘000) INR Crore AUM 34,58,321 34,536 17,20,013 16,278 Sale of Service 5,384 55 2,798 27 M2M gain from Investment 7,426
Slide 48: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights INR Crore UTI Retirement Solutions Ltd. UTI Capital Pvt. Ltd. UTI Venture Funds Mgmt. Co. Pvt. Ltd. Particulars H1 FY 22 H1 FY 21 H1 FY 22 H1 FY 21 H1 FY 22 H1 FY 21 AUM 1,86,717 1,43,791 1,136 1,159 -- -- Sale of Services 44.6 6.9 2.9 3.7 -- -- M2M Gain on In
Slide 49: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.5 24% 49% 22% 0.45 42% 21% 0.4 18% 15% 34% 15% 15% 0.35 31% 31% 14% 0.3 12% 10% 9% 0.25 FY18 FY19 FY20 FY21 H1 FY 21-22* FY18 FY19 FY20 FY21 H1FY21-22* #h1 FY21-22 has been annualized #H1 FY21-22 has been annualized 47
Slide 50: Annexures
Annexures UTI Mutual Fun, Haq, ek betar zi 48
Slide 51: Investor Services Key Indicators – Q2 FY 21-22
Investor Services Key Indicators – Q2 FY 21-22 1.09 Lakh 0.79 Lakh 20.32 Seconds Total Call Volume Outbound Total Call Volume Inbound Average Speed of Answer Contact Center 23 Low Complaints Ratio 1.14 Crore Total Complaints Received Folios against folios at 0.0001% Investor Services 38.97% INR 5.96
Slide 52: Breakup of Consolidated investments
Breakup of Consolidated investments Breakdown of Total Investment As on Sep 30, 2021 INR crore Investment in UTI MF Schemes 2,166 Equity 130 8.2% Arbitrage 1,286 14.4% Liquid & Debt 750 Total Offshore Funds 403 Investments: INR 2,798 crore Equity 363 Debt / Hybrid 40 77.4% Venture Funds, Other Equit
Slide 53: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman and Independent Director Dinesh Kumar Mehrotra has previously served as the Chairman and the Managing Director of LIC. He has also served as the Executive Director of International Operations at LIC. He hold a
Slide 54: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Deepak Kumar Chatterjee | Independent Director Prior to joining the Company, Deepak Kumar Chatterjee was associated with SBI Funds Management Private Limited as the Managing Director and Chief Executive Officer and SBI Capital Markets Limited as a Executive
Slide 55: 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
Slide 56: Thank You
Thank You REGISTERED OFFICE: Registered Office: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Ltd. (Investment Manager for UTI Mutual Fund) E-mail: investor.relations@uti.co.in Mutual Fund investments are subject to mark
UTI Asset Management Company — Q2 FY2021-22 Earnings Presentation on 6ix