Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q4 FY22 Earnings Presentation
50 slides from Nippon Life India Asset Management's earnings presentation, Apr 26, 2022
Slide 1: Exchange cover letter for investor presentation
April 26, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, Fort, Mumbai 400 001 G Block, Bandra Kurla Complex, BSE Scrip Code: 540767 Bandra (East), Mumbai 400 051 NSE Scrip Symbol: NAM-INDIA Dear Sir(s), Sub.
Slide 2: Investor Presentation Q4 FY22
Investor Presentation Q4 FY22 April 2022
Slide 3: Highlights
Highlights Highest-ever Annual Profit after Tax at INR 7.4 billion (+9%) FY22 Operating Profit at INR 7.6 billion (+46%) NIMF has the largest investor base in the Industry 17 million investor folios (+7.0 million in FY22) led by strength in Retail segment Base of Unique Investors at 12 million (+75%
Slide 4: NAM India - Profile
NAM India - Profile One of the largest Asset Manager in India, with 26 years of track record 270+ Locations NAM India AUM INR 3.46 trillion (as of Mar 31, 2022) 960+ Employees Mutual INR 2,774 bn* Funds 84,300+ Distributors Managed INR 595 bn 39.2 mn Accounts FY22 Trnx International INR 88 bn 17.0 m
Slide 5: Key focus areas - Being Future Ready
Key focus areas - “Being Future Ready” 1 2 3 Superior fund Consolidate our Expansion of non- performance Passive strategy MF businesses Dominant position • AIF & PMS businesses Consistent improvement (68% share in market • Leverage NLI’s parentage in performance of key volumes) to grow Offshore segm
Slide 6: Industry AUM Trend
Industry AUM Trend WA <> Nippon Life india Asset Management Ltd
Slide 7: Quarterly AUM
Quarterly AUM Industry AAUM (INR bn) 38,209 38,380 36,208 10% 11% 32,106 33,179 10% 9% 13% 12% 13% 9% 14% 14% 28% 27% 30% 34% 33% 47% 49% 49% 44% 42% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Equity Debt Liquid ETFs YoY growth led by equity & passive funds, while fixed income assets saw marginal fall; net
Slide 8: NIMF - AUM Trends
NIMF - AUM Trends WA <> Nippon Life india Asset Management Ltd
Slide 9: Quarterly trends
Quarterly trends (INR bn) Mutual Fund QAAUM MF QAAUM Mix 7.3% 7.4% 7.3% 16% 17% 17% 18% 20% 7.2% 12% 12% 12% 12% 12% 7.1% 31% 30% 29% 27% 26% 2,655 2,806 2,833 2,286 2,404 41% 41% 43% 43% 42% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 QAAUM (INR bn) Market share Equity Deb
Slide 10: Investor First
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Slide 11: Investor First remains the core philosophy
“Investor First” remains the core philosophy Launched innovative schemes and further expanded product suite ❑ Successfully completed 7 NFOs (incl. Taiwan Equity Fund, Flexi Cap Fund, Nifty Auto ETF and Silver ETF) ❑ Garnered assets of approx. INR 40 billion from more than 275k investors ❑ Through th
Slide 12: Retail Execution
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Slide 13: Largest investor base in the Industry
Largest investor base in the Industry (in million) Unique Investors Total Folios 12.6% 13.1% 35.7% 11.9% 11.1% 32.3% 32.5% 10.2% 31.4% 30.2% 17.0 12.0 15.2 13.3 10.0 11.4 8.6 10.0 6.9 7.5 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 B-30 Folios ETF Folios 57.5% 59.8% 58.1% 1
Slide 14: Strong pace of investor acquisition continues
Strong pace of investor acquisition continues A new Digital Purchase every… A new SIP Purchase every… 12s 7s 20s 14s FY21 FY22 FY21 FY22 A new folio added every… A new ETF folio added every… 20s 3s 16s 3s FY21 FY22 FY21 FY22 * Frequency in seconds calculated with assumption of 252 days in a year 13
Slide 15: Higher share of Retail & B-30 segments
Higher share of Retail & B-30 segments Investor segment-wise breakup of AAUM (%) NIMF 28% 22% 50% Industry 23% 32% 45% Retail SBI MF 15% 27% 58% HDFC MF HNI 24% 38% 38% ICICI Prudential MF 18% 38% 43% Corporate ABSL MF 23% 25% 52% Contribution from B-30 locations (B-30 AAUM / Total AAUM) NIMF 17.2%
Slide 16: Systematic Transactions
Systematic Transactions Quarterly Book (INR bn) Folios (mn) 4.0 3.7 3.6 Q3 FY22 Book (INR bn) 3.3 3.4 7.3 20.1 21.3 6.9 7.0 17.5 18.8 17.0 Jan-22 Feb-22 Mar-22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 SIP accounts continuing for >5 years As on Folios at 4.0 mn (+19%) 48% Mar 31, 2022 AUM at INR 514 b
Slide 17: ETF - Leveraging first mover advantage
ETF - Leveraging first mover advantage
Slide 18: Comprehensive portfolio of Passive Funds
Comprehensive portfolio of Passive Funds NIMF ETFs & Index Funds Fixed Income Equity Commodity Nippon India ETF Liquid BeES Nippon India ETF Gold BeES Nippon India ETF Long Term Gilt Nippon India Silver ETF Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 Maturity Nippon India ETF Nifty SDL - 2026 M
Slide 19: Leadership position maintained
Leadership position maintained Largest bouquet of 25 ETFs in the industry across Equities, Debt & Commodities ~68% 58% 14% INR 558 bn INR 66 bn Volume Share* Share of folios Market Share ETF QAAUM Gold ETF QAAUM NSE volume (Jan - Mar 2022) (INR mn)** Nifty Bank ETFs & Nifty Mutual Funds Nifty 50 ETF
Slide 20: Digital initiatives
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Slide 21: Building Digitech Ecosystem
Building Digitech Ecosystem Digital KYC Business Process automation - RPA, OCR Chat Bot / IVR implementation Instant Folio creation Fund Accounting automation First level support through AI Finance & HR process Automation Customer Customer Operations Onboarding Servicing Transactions digitalized Dee
Slide 22: All-new NIMF App
All-new NIMF App - For today’s investors & their diverse needs! 21
Slide 23: NIMF Investor App - Invest in Experience First
NIMF Investor App - Invest in Experience First & Funds Subsequently A new-age app that is styled for millennials & simplified for the current investor base Keeping e-commerce best practices at its heart - Next level, simplified and intuitive interface coupled with new age contemporary design, produc
Slide 24: Digital Business
Digital Business Lumpsum & New SIP Registration Digital Purchases (lakhs)* Q4 FY22 9.1 95% Q4 FY21 4.7 ❑ 9+ lakh digital new business transactions (Purchase + New SIP Registrations) in Q4 FY22 ❑ Digital (New Purchase and SIP registrations) transactions crossed 3 million (+63%) in FY22 ❑ Digital cont
Slide 25: Key initiatives undertaken in Q4 FY22
Key initiatives undertaken in Q4 FY22 Performance Campaigns reaching new horizons Successful use of Adobe Suite to increase quality & quantity One of the first to partner with Google on their Beta product - Performance Max which achieved exceptional results Successful launch of Nippon India Silver E
Slide 26: Distribution
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Slide 27: Strong Distribution
Strong Distribution Total base of empaneled distributors rose to over 84,300 81 95 82 ~84,100 Banks National Distributors Alternate Mutual Fund (incl. PSU banks) Distributors Large base of MFDs - one of our biggest strengths 26
Slide 28: Leveraging partnership with MFDs
Leveraging partnership with MFDs Overall Distribution Mix Mix of Distributed Assets Banking Distributors Distributed 21% Direct Assets 44% Mutual Fund Channel Distributors 56% National 59% Distributors 20% Distributed Assets (investor-wise) AUM (INR bn) Corporate 19% 638 Retail 52% 359 HNI 234 29% R
Slide 29: Other Businesses
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Slide 30: Nippon India Alternate Investments (NIAIF)
Nippon India Alternate Investments (NIAIF) ❑ NIAIF delivered consistent long-term investment performance across asset classes ❑ As on March 2022, raised commitments of INR 45 billion across funds ❑ Real estate mandates ❑ Fully committed the Real Estate mandates of offshore investors ❑ Made 5 complet
Slide 31: Offshore Business - Creating expressways globally
Offshore Business - Creating ‘expressways’ globally Key presence Singapore Mauritius Dubai Japan 117 115 114 (INR bn) 103 101 30 28 27 33 30 Advisory 71 87 87 88 70 Managed Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Other International Tie Ups ETFS Reliance India Nifty 50 ETF Godo Kaisha Genkai India Invest
Slide 32: ESG Focus
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Slide 33: ESG at NAM India
ESG at NAM India Comprehensive framework that will guide the policies, processes and responsible investment practices To create a sustainable future for our stakeholders by integrating environmental, social Vision and governance (ESG) principles into our business operations, investment processes and
Slide 34: Responsible Investment at NAM India
Responsible Investment at NAM India As a UN PRI signatory, NAM India took several steps to integrate ESG parameters in its investment processes; multiple initiatives were implemented during Q4 FY22 Proprietary ESG Framework ▪ Enables ESG integration in investment decision making and monitoring ▪ Bas
Slide 35: ESG Initiatives
ESG Initiatives Environment Social Governance Environment Consciousness: Community Development Programs Innovation in Technology: • NAM has put controls in place to monitor ▪ NAM has undertaken a project (in ▪ Virtualisation: all datacenter collaboration with Edelgive Foundation) to devices are virt
Slide 36: Financial Overview
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Slide 37: Financial Summary
Financial Summary Consolidated (INR mn) Q4 Q4 Change Q3 Change Change Particulars FY22 FY21 FY22 FY21 (YoY) FY22 (QoQ) (YoY) Revenue from Operations 3,380 3,019 12% 3,385 - 13,066 10,621 23% Operating Expenditure 1,381 1,441 -4% 1,335 3% 5,470 5,423 1% Fee & Commission 160 141 13% 118 35% 513 432 19
Slide 38: Financial Assets
Financial Assets Constituents of Financial Assets (INR mn) Mar 31, 2022 March 31, 2021 Investment in NIMF’s schemes 27,090 23,496 - Equity 2,694 2,403 - Debt 24,396 21,093 Bank FDs and tax-free bonds 3,995 4,515 Other assets 2,706 1,765 Total 33,790 29,776 NIMF - NIMF - Other Other Bank FDs Equity B
Slide 39: Operating Metrics
Operating Metrics Benefits from operating leverage to manifest as AUM increases QAAUM / Branch QAAUM / Employee (INR bn) 14.8 12.8 11.7 10.4 11.5 2.1 2.0 2.0 2.3 2.9 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Profit / Branch Profit / Employee (INR mn) 155.0 137.4 109.3 97.7 84.3 27.5 30.8 17.8 17.0 15.9 FY1
Slide 40: Dividend History
Dividend History Earnings Per Share (INR) Dividend Payout (INR bn) 6.84 11.81 10.90 4.93 4.43 7.94 3.44 6.69 FY 19 FY 20 FY 21 FY 22 FY 19 FY 20 FY 21 FY 22 Total Dividend INR 11 per share in FY22 96% of FY22 earnings shared with shareholders Cumulative dividend of INR 34 bn in last 8 financial year
Slide 41: Shareholding Pattern
Shareholding Pattern Constituent of S&P BSE 150 MidCap Index Banks / MFs / Insurance / AIFs S&P BSE 200 Retail / 9% Corporates / S&P BSE 250 LargeMidCap Index Others S&P BSE 400 MidSmallCap Index 10% S&P BSE 500 Foreign Investors S&P BSE AllCap 7% Nippon Life Insurance 74% NIFTY LargeMidcap 250 NIFT
Slide 42: Thank you for your time! Stay safe!
Thank you for your time! Stay safe!
Slide 43: Annexure
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Slide 44: About Nippon Life Insurance
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Slide 45: Profile
Profile ❑ Fortune 500 company (Rank 111 in 2021)1 ❑ Japan’s largest private life insurer & one of the largest in the world2 ❑ Total assets over US$ 774 bn3 ❑ 58 Asset Management related & 21 Insurance related operations worldwide4 Asset Management Presence in India Life Insurance Shareholding - 73.8
Slide 46: Nippon Life Group
Nippon Life Group Nippon Life Domestic Insurance Business Asset Management Business Overseas Insurance Business Taiju Life Nippon (82.6%) Reliance Nippon Life India Asset Revenues from insurance and Life Insurance Management reinsurance premiums (FY2020-21): (49.0%) $3.8bn (73.8%) GWP (FY2020-21): $
Slide 47: Board Of Directors
Board Of Directors WA <> Nippon Life india Asset Management Ltd
Slide 48: Profile of Board Members
Profile of Board Members… General Ved Prakash Malik (Retd.) (Independent Director) has worked in the Indian Army as Chief of the Army Staff from October 1, 1997 to September 30, 2000. He had dual responsibility of being an advisor to the Government as well as commander of 1.2 million strong Indian A
Slide 49: Profile of Board Members
Profile of Board Members Mr. Minoru Kimura (Associate Director) serves as Managing Executive Officer, Head of Global Business at Nippon Life Insurance (Nippon). In his 32-year professional career with Nippon, he has engaged in corporate planning for more than 10 years. Also, he has worked for Nissay
Slide 50: 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
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