Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q3 FY25 Earnings Presentation
53 slides from Nippon Life India Asset Management's earnings presentation, Jan 23, 2025
Slide 1: Cover letter to stock exchanges: Investor Presentation
January 23, 2025 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Fort, G Block, Bandra Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 051 BSE Scrip Code: 540767 NSE Scrip Symbol: NAM-INDIA Dear Sir(s), Su
Slide 2: Investor Presentation – Q3 FY25
Data Classification: Public Investor Presentation – Q3 FY25 Jan-2025
Slide 3: Contents
Data Classification: Public Contents 1 Mutual Fund Industry 2 Nippon Life India Asset Management Limited 3 ESG Focus 4 Financial Overview 5 Annexures 2
Slide 4: Mutual Fund Industry
Data Classification: Public Mutual Fund Industry 3
Slide 5: Quarterly AUM Trend
Data Classification: Public Quarterly AUM Trend Industry AAUM (INR trillion) 7.67%* 8.29%* 8.31%* 49.2 66.2 68.6 12.3% 12.3% 12.1% 11.1% 9.4% 9.5% 20.8% 17.4% 17.6% 55.8% 60.9% 60.8% Dec-23 Sep-24 Dec-24 Equity Debt Liquid ETFs ▪ Proportion of Equity assets have increased over the last year ▪ Increa
Slide 6: Segment-wise Mix & Geographic Spread
Data Classification: Public Segment-wise Mix & Geographic Spread Segment-wise AUM T-30/B-30 AUM B-30 19% Retail 27% HNI 34% Corporate 39% T-30 81% ▪ Individual segment contributes 61% of AUM ▪ B-30 locations contribute 19% of AUM Source: AMFI Data based on MAAUM for the last month of the quarter 5
Slide 7: Systematic Investments
Data Classification: Public Systematic Investments Monthly SIP flows (INR bn) SIP folios (mn) 265 99 103 245 76 176 Dec-23 Sep-24 Dec-24 Dec-23 Sep-24 Dec-24 SIP AUM (INR bn) ▪ Steady growth witnessed in the monthly SIP flows (+50% YoY) ▪ At INR 265 bn, Dec-2024 recorded all- time high monthly SIP f
Slide 8: Nippon Life India Asset Management
Data Classification: Public Nippon Life India Asset Management 7
Slide 9: NAM India At A Glance
Data Classification: Public NAM India At A Glance One of the largest Asset Managers in India, with track record of ~30 years NAM India Mutual Funds Managed Accounts International AUM INR 5.56 trn* INR 833 bn INR 6.56 trn* INR 167 bn (Advisory INR 21 bn) Locations Distributors Folios Employees Reach
Slide 10: Key Highlights (1/2)
Data Classification: Public Key Highlights (1/2) Rank 1 Maintained industry ranking of 4th Largest AMC based on QAAUM No.1 Non-Bank Sponsored MF in India AAUM Dec-24 QAAUM - INR 5,700 bn, up 51% YoY & Investor Folio Base 2 4% QoQ 3 Highest Investor Base – 31.0 mn Market share at 8.31% | +63 bps YoY
Slide 11: Key Highlights (2/2)
Data Classification: Public Key Highlights (2/2) ETF Profitability 6 Dec-24 QAAUM - INR 1,502 bn 7 Q3 FY25 Profit After Tax at INR Market share at 18.1% (+278 bps YoY) 2.95 bn (+4% YoY / -18% QoQ) Digital Customer Centricity 4.08 mn Digital transactions in Q3 FY25 One of the Lowest Investor 8 9 Cont
Slide 12: A Complete Asset Manager
Data Classification: Public A Complete Asset Manager Comprehensive Product Bouquet AUM Spread Across Asset Classes Offerings across MF, AIF/PMS and Offshore Equity constitutes 51% of MF AUM Diverse MF offerings in active/passive space ETFs constitute 26% of MF AUM Wide Reach Strong Physical & Digita
Slide 13: Comprehensive Product Bouquet
Data Classification: Public Comprehensive Product Bouquet Mutual Fund AIF 18 schemes Active Passive Public Equity 43 schemes 48 schemes Real Estate Credit Equity Equity (Index Market Cap based Funds/ ETFs) Structured Credit Sector Broad Market Thematic Sector Tech VC International Thematic/Strategy
Slide 14: MF AUM Spread Across Asset Classes
Data Classification: Public MF AUM Spread Across Asset Classes QAAUM (INR bn) 3,777 5,492 5,700 24.6% 27.0% 26.4% 9.0% 7.7% 7.3% 17.8% 14.2% 15.2% 48.6% 51.1% 51.1% Dec-23 Sep-24 Dec-24 Equity Debt Liquid ETFs ▪ Share of Equity AUM has increased over Dec-2023 level to 51% ▪ Share of ETF AUM has incr
Slide 15: Optimal Mix of Investors
Data Classification: Public Optimal Mix of Investors MAAUM (INR bn) 3,940 5,606 5,776 40% 40% 40% (7.8%)* (8.6%)* (8.6%)* 29% 29% 29% (6.6%)* (7.1%)* (7.2)* 31% 31% 31% (9.0%)* (9.2%)* (9.4%)* Dec-23 Sep-24 Dec-24 Retail HNI Corporate Investor segment-wise AAUM ▪ NIMF’s Retail share at 31% is higher
Slide 16: Wide Reach
Data Classification: Public Wide Reach B-30 AAUM/Total AAUM B-30 Folios (mn) 12.1% 11.7% 11.8% NIMF 20.4% 11.5 12.6 8.9 Industry 18.5% Dec-23 Sep-24 Dec-24 B-30 MAAUM (INR bn) 8.7% 9.1% 9.2% 1,150 1,181 791 Dec-23 Sep-24 Dec-24 Source: AMFI; 15 Calculated on MAAUM
Slide 17: Wide Reach
Data Classification: Public Wide Reach Unique Investors (mn) Total Folios (mn) 36.9% 37.7% 38.0% 13.7% 13.7% 13.8% 28.8 31.0 18.9 20.0 15.5 22.5 Dec-23 Sep-24 Dec-24 Dec-23 Sep-24 Dec-24 Overall Distribution Mix ▪ NIMF has the largest investor base in the industry Distributed ▪ NIMF’s market share i
Slide 18: Strong Physical Distribution
Data Classification: Public Strong Physical Distribution Total base of empaneled distributors rose to over 1,11,400 with highest single Distributor concentration at ~5% of assets 102 76 87 1,11,200+ Banks National Alternate Mutual Fund Distributors (incl. PSU banks) Distributors Distributed Assets (
Slide 19: Focused Business Verticals for Various Segments
Data Classification: Public Focused Business Verticals for Various Segments Key Clients Group (KCG) ▪ Experienced Institutional sales team managing specific target segment of clients with focused business approach by maintaining relationship with Large corporate groups, Banks and financial Instituti
Slide 20: Quick Commerce: Voice Enabled, Intuitive VAS & Real Time Renditions!
Data Classification: Public Quick Commerce: Voice Enabled ,Intuitive VAS & Real Time Renditions! 19
Slide 21: Strong Digital Presence
Data Classification: Public Strong Digital Presence Lumpsum & New SIP Registration Digital Purchases (mn)* Q3 FY25 4.08 2.4X Q3 FY24 1.69 Digital Business 73% Digital 46/min Every two seconds 4.08 Mn Q3 FY25 transactions Q3 FY25 contribution to Q3 FY25 a Lumpsum (New Purchase + total NIMF Purchase o
Slide 22: Steady Systematic Transactions
Data Classification: Public Steady Systematic Transactions Quarterly Systematic Book (INR bn) +441% Q3 FY25 Book (INR bn) 99.1 32.9 32.5 33.6 90.3 75.3 52.7 18.3 19.4 27.4 Oct-24 Nov-24 Dec-24 FY21 Avg. FY22 Avg. FY23 Avg. FY24 Avg. Q1 FY25 Q2 FY25 Q3 FY25 SIP accounts continuing for >5 As on Folios
Slide 23: ETF - Leadership Position Maintained
Data Classification: Public ETF - Leadership Position Maintained One of the largest bouquet of 24 ETFs in the industry across Equities, Debt & Commodities 55% 55% 18% INR 1,502 bn INR 148 bn Volume Share* Share of folios^ Market Share^ ETF QAAUM Gold ETF QAAUM NSE volume (Oct - Dec 2024) (INR mn)**
Slide 24: Nippon India Alternative Investments (NIAIF)
Data Classification: Public Nippon India Alternative Investments (NIAIF) Total Commitment Raised (Till date) Dec-23 Sep-24 Dec-24 INR 59.8 bn INR 67.3 bn INR 69.8 bn ▪ Currently offers products across four business lines namely Public Equity, Real Estate Credit, Performing Credit & Tech VC ▪ Fund ra
Slide 25: Offshore Business - Creating 'Expressways' Globally
Data Classification: Public Offshore Business - Creating ‘Expressways’ Globally Key presence Singapore Dubai Japan 194 188 (INR bn) 146 22 21 21 Advisory 172 167 Managed 125 Dec-23 Sep-24 Dec-24 Other International Tie Ups Xtrackers India Govt. Bond UCITS ETF Godo Kaisha Genkai India Investment* Bua
Slide 26: Process Orientation - Investments
Data Classification: Public Process Orientation - Investments Risk Rating of Factor Analysis Securities Risk Optimization tool Quantitative analyzing key factors Assessment Investment and comparing the portfolio &benchmark considering Business Philosophy – construct Risk and Management Risk The Nipp
Slide 27: PDCA Approach
Data Classification: Public PDCA Approach Plan Do Check Act ▪ Within fund ▪ Analysis and ▪ Monthly fund ▪ Adjustment in mandate (target prediction of review by the portfolio for return, risk, macro economy Fund better risk- benchmark, and market Management return investment ▪ Portfolio Team ▪ Refine
Slide 28: Investment Team
Data Classification: Public Investment Team 69 Members Investment Team Strength 26 16 Equity MF Fixed Income MF 25 2 Managed Accounts Offshore Business ~1,000 years Cumulative experience of Investment Team 20+ years Average tenure of CIOs with NAM India Dedicated Teams for Credit Research, Real Esta
Slide 29: ESG Focus
Data Classification: Public ESG Focus 28
Slide 30: Vision
Data Classification: Public Social responsibility commitment aligned with UN SDGs Vision To create a sustainable future for our stakeholders by integrating environmental, social and governance (ESG) principles into our business operations, investment processes and stewardship ESG integration initiat
Slide 31: CSR
Data Classification: Public CSR NAM has allocated INR 185 mn towards CSR initiatives in YTD FY25 Number of Beneficiaries from Focus Areas NGO Partners SDG Linkage projects in FY25 4,706 ▪ Tata Memorial Centres Healthcare Community members from ▪ Vision Foundation of India economically weaker section
Slide 32: Financial Overview
Data Classification: Public Financial Overview 31
Slide 33: Financial Summary
Data Classification: Public Financial Summary Consolidated Q3 Q3 Change Q2 Change 9M 9M Change Particulars (INR mn) FY24 FY25 FY24 (YoY) FY25 (QoQ) FY25 FY24 (YoY) Revenue from Operations 5,879 4,233 39% 5,713 3% 16,642 11,750 42% 16,432 Operating Expenditure 2,116 1,723 23% 2,060 3% 6,146 4,984 23%
Slide 34: Financial Asset
Data Classification: Public Financial Asset Constituents of Financial Assets (INR mn) Dec 31, 2024 Sep 30, 2024 Investment in NIMF’s schemes 25,638 32,254 - Debt 20,510 27,112 - Equity 5,128 5,142 Bank FDs and tax-free bonds 3,646 3,650 Other assets 4,454 4,632 Total 33,738 40,537 Other Other Assets
Slide 35: Dividend History
Data Classification: Public Dividend History Earnings Per Share (INR) Dividend Payout (INR bn) Consolidated 17.5 10.37 11.8 11.5 6.84 7.16 10.9 4.93 6.7 3.44 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Total Dividend INR 16.50 per share in FY24 ~99% of FY24 standalone earnings shared with shar
Slide 36: Thank you for your time!
Data Classification: Public Thank you for your time! 35
Slide 37: Annexure
Data Classification: Public Annexure 36
Slide 38: Macro Trends
Data Classification: Public Macro Trends 37
Slide 39: Industry AUM has grown rapidly over the last decade
Data Classification: Public Industry AUM has grown rapidly over the last decade CAGR for MF AUM: 20% MF AUM (INR trillion) 19% % of GDP 16% 16% 15% 13% 12% 11% 11% 9% 9% 7% 55.0 37.7 40.0 32.2 22.7 24.6 24.7 18.6 12.1 13.6 9.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Source: RBI, SEBI,
Slide 40: Under-penetration presents significant growth potential
Data Classification: Public Under-penetration presents significant growth potential MF AUM/GDP 123% 96% 79% 83% 65% 61% 53% 60% 17% World Brazil Canada Germany India Japan Sweden United United Kingdom States Unique MF investors 3.1% ▪ Mutual Fund penetration in India is 2.6% low as % of GDP vs globa
Slide 41: Key Enablers – Robust Economic Growth
Data Classification: Public Key Enablers – Robust Economic Growth CAGR: 10% India GDP (INR trillion) YoY growth 18% 16% 13% 12% 11% 10% 11% 11% 8% 6% 272 294 235 189 201 198 154 171 -1% 112 125 138 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 ▪ India is now the 5th largest economy in the w
Slide 42: Key Enablers – Financialization of Savings
Data Classification: Public Key Enablers – Financialization of Savings Gross Financial Savings (INR trillion) CAGR: 11% % of Household Savings 68.1% 60.5% 62.4% 58.9% 60.5% 59.9% 57.9% 55.1% 52.1% 51.5% 47.6% 31 30 23 26 15 16 21 23 11 12 13 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 No.
Slide 43: Key Enablers – Favourable Demographics
Data Classification: Public Key Enablers – Favourable Demographics ~60% of India’s population is in the working age group 65 yrs and above 7% 0-14 yrs 45-64 yrs 27% 20% 15-44 yrs 46% Source: NFHS-5; 2019-21 statistics 42
Slide 44: Key Enablers – Increased Awareness
Data Classification: Public Key Enablers – Increased Awareness Investor education and awareness initiative by AMFI The initiative has reached out to Indians across states and languages through TV, Digital, Print and other media 43
Slide 45: Key Enablers – Easy Accessibility
Data Classification: Public Key Enablers – Easy Accessibility Smartphone penetration in India UPI transaction volumes (mn) CAGR: 89% 75% 1,312 66% 71% 61% 54% 46% 838 35% 29% 460 19% 23% 54 223 125 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FY19 FY20 FY21 FY22 FY23 FY24 ▪ Smartphone penetrati
Slide 46: About Nippon Life Insurance
Data Classification: Public About Nippon Life Insurance 45
Slide 47: Profile
Data Classification: Public Profile ❑ Largest market share in Japan among private life insurers in terms of premium income ❑ Total assets over JPY 97 Trillion ❑ 60 Asset Management related & 21 Insurance related operations worldwide * *As of March 31, 2024 Asset Management Life Insurance Shareholdin
Slide 48: Nippon Life Group
Data Classification: Public Nippon Life Group Nippon Life Domestic Insurance Business Asset Management Business Global Insurance Business Nippon Life Insurance Company MLC Limited (80.0%) Nissay Asset TAIJU LIFE INSURANCE Management Corporation (100.0%) (85.0%) Reliance Nippon Life COMPANY LIMITED I
Slide 49: Board of Directors
Data Classification: Public Board of Directors 48
Slide 50: Profile of Board Members
Data Classification: Public Profile of Board Members Mr. Upendra Kumar Sinha (Independent Director & Chairman) a 1976 batch IAS officer of Bihar cadre, during his 3 decades plus of experience has held several responsible government positions in India, including as Joint Secretary (Banking) and Joint
Slide 51: Profile of Board Members
Data Classification: Public Profile of Board Members Mr. Ashvin Parekh (Independent Director) is a qualified Chartered Accountant and has set up the advisory firm that provides services to the Boards and the management of BFSI companies. Mr. Parekh retired as a Senior Partner from Ernst & Young in J
Slide 52: Profile of Board Members
Data Classification: Public Profile of Board Members Mr. Tomohiro Yao (Associate Director) is Regional CEO for Asia Pacific and Head of India at Nippon Life Insurance (NLI). He is responsible for operations in the Asia Pacific. He is a seasoned professional with over 25 years of experience in the li
Slide 53: Disclaimer
Data Classification: Public 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
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