Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Reliance Nippon Life Asset Management — Q1 FY20 Earnings Presentation
42 slides from Nippon Life India Asset Management's earnings presentation, Jul 29, 2019
Slide 1: Investor Presentation cover letter to exchanges
ReLIANce NIPPON LIFE ASSET MANAGEMENT LTD ❖ Nippon Life Company July 29, 20 19 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 (Ea
Slide 2: Investor Presentation Q1 FY20
NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD - Nippon Life Company Joint Ventu,-. betwHn RelianC9 Capital & Nippon Life Group Investor Presentation Ql FY20
Slide 3: Key Highlights
Key Highlights One of the largest AMC's in India - Managing AUM of INR 4.31 tn Profit Net profit of INR 1,254 mn for Ql FY20 grew by 13% To launch Inda-Japan technology fund, announced during Osaka G20 summit Launched first Indian ETF in Australia with ETF Securities Australia for attracting Interna
Slide 4: RNAM Snapshot
RNAM Snapshot ❖ Nippon Life Company NIPPON LIFE ASSET 3 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 5: Snapshot
Snapshot RNAM is one of largest asset manager in India, with 24 years of track record RNAM AUM as of Jun'l9 INR 4.31 tn Mutual Funds Managed Accounts International INR 2,025 bn INR 2,251 bn INR 31 bn* Advisory INR 54 bn Trusted Asset Manager - Holding Fund Mandates from EPFO •••• ESIC ~ a PFRDA tJ C
Slide 6: RNAM Quarterly Performance
RNAM Quarterly Performance ❖ Nippon Life Company NIPPON LIFE ASSET 5 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 7: Leading asset management player: RNAM AUM
Leading asset management player RNAM AUM (INR Bn) ■ MF ■ Pension ■ Managed ■ Offshore 4,074 4,048 4,144 4,221 4,307 27 31 31 31 27 35 33 34 34 34 1,696 1,750 1,806 1,878 2,217 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 RNAM AUM one of the highest in Industry - INR 4.31 Tn MF contributes 47% of overall AUM N
Slide 8: Leading asset management player: RMF QAAUM
Leading asset management player RMF ~AUM (INR Bn) 2,404 2,448 2,363 2,336 2,226 5% 7% 9% 12% Jun'lB Sep'l8 Dec'l8 Mar'l9 Jun'l9 ■ Equity ■ Debt ■ Liquid ■ ETFs Equity now contributes 42% of Total AUM NIPPON LIFE ASSET ❖ OMUM: Quarterly Average Assets under Management 7 ReLIANCe MANAGEMENT LTD Ni ppo
Slide 9: Equity & Fixed Income Assets
Equity & Fixed Income Assets Equity ~AUM (INR bn) Jun'18 Sep'18 Dec'18 Mar'19 RMF Equity Assets grew by 19% YoY rlXed Income QAAUM (INR bn) 1,391 1,399 1,292 1,211 1,022 Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 ■ Debt ■ Liquid NIPPON LIFE ASSET ❖ 8 ReLIANCe MANAGEMENT LTD N .1ppon L.f I e Company ,_, y,on
Slide 10: Focus on Retail & Small towns
Focus on Retail & Small towns Retail MAAUM (INR bn) Retail AAUM / Total AAUM (%) RMF 40% Industry HDFC 24% Birla 22% 581 ICICI Jun'18 Sep'18 Dec'18 Mar'19 Jun'19 Higher composition of Retail Assets in AUM at 40°,<> V/5 Industry 26% ReLIANCe NIPPON LIFE ASSET ❖ Source: AMFI 9 MANAGEMENT LTD Ni ppon L
Slide 11: Beyond 30 cities (B-30) Contribution
Beyond 30 ctties (B-30) Contribution Higher AUM % sourced from B-30 locations as compared to Industry B-30 AAUM / Total AAUM (%) RMF 20 Industry 16 B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence Source: AMFI NIPPON LIFE ASSET ❖ 10 ReLIANCe MANAGEMENT LT
Slide 12: City wise break up of AUM
City wise break up of AUM 28% 22% 15% l 21% 16% l RMF HDFC Birla SBI ICICI ■ Top 5 Cities ■ Next 10 Cities ■ Next 20 Cities ■ Next 75 Cities ■ Others RMF has 28% of AUM from Beyond Top 15 cities highest among Top 5 AMC's NIPPON LIFE ASSET ❖ 11 ReLIANCe MANAGEMENT LTD N.1ppon L.f I e Company ,.,.nt ,
Slide 13: Systematic Investment Plan - Long & Stable Inflows
Systematic lnvesh,,ent Plan - Long & Stable Inflows SIP Monthly Flows 10.0 0 3.2 3.5 9.00 2.8 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 1.5 4.00 3.00 1.0 2.00 0.5 1.00 - - June'16 June'17 June'18 June'19 - SIP Book (INR bn) - SIP Count (Mn) Annualized SIP book of over INR 103 bn ~ 3.2 mn of SIP accounts c
Slide 14: Unique Investors
Unique Investors Unique Investors Count (mn)• Jun'l8 Sep'l8 Dec'l8 Mar'l9 Jun'l9 Unique Investor Base has Increased by 8°1b YoY * Based on PAN basis NIPPON LIFE ASSET 13 ReLIANCe MANAGEMENT LTD Nippon Life Company ,.,.nt ,_, y,onluro botwoon ..D a , ,a· nco coptlo • 1..,• N',ppon u,o , ,, ,.._ _,.ou
Slide 15: Distribution
Distribution ❖ Nippon Life Company NIPPON LIFE ASSET 14 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 16: Strong Distribution
Strong Distribution Empaneled over 1,000 New Distributors in Ql FY20; total base at - 74,500 Banks embank Deutsche Bank lZI O ,c,c1Bank Standard Chartered ~ - HDFC BANK --------- - " AXIS BANI< National - Distributors - - KA RVYIH [• HDFC securities Alternate !incl. PSU banks) b RBLBANK ' ,_. ~3,Tg,
Slide 17: Leveraging Partnership with IFA
Leveraging Partnership wtth IFA Distribution Mix* Growing IFA Base ■ Independent Financial Advisors IFA AUM (INR Bn) ■ Banking Distributors ■ National Distributors June'l7 June'l8 June'l9 *Excluding Direct AUM As on June'19 Derisked Distribution Model No Single distributor contributes more than 5.4%
Slide 18: Digital Business - Driving on Innovation
Digital Business - Driving on Innovation Digital Purchases1 ('000) 391 195 • Growth 101% Ql 2018 -'19 Ql 2019 -'20 Digital contribute 41% of total purchase transactions for Ql FY20 Digital purchases in Ql FY20 more than 2X YoY RNAM among the first AMCs to launch e-NACH mandate in June 2019 ReL
Slide 19: Pillars of Digital Ecosystem
Pillars of Digital Ecosystem With Partners Traditional Partners With Investors Website Collaborate Digital Players P,n, Money ~obiKwik· Groww Platforms www.reliancemutual.com REOVisi•{ ,A~,C~ f\Q T C Cl!IOIOilO-G l tJ. Communicate Investwell Investor Apps with updated functionalities Website for Par
Slide 20: Other Business
Other Business ❖ Nippon Life Company NIPPON LIFE ASSET 19 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 21: Alternate Investment Fund (AIF)
Alternate lnvest1nent Fund (Alf) At Present Offer Category II & Category Ill AIFs Equity: Reliance Equity Opportunities AIF Series Credit: Reliance Yield Opportunities AIF Real Estate: Reliance Yield Maximiser AIF Series, Reliance Yield Plus AIF Series Raised Commitments of approx. INR 26
Slide 22: Indo Japan Emerging Technology & Innovation Fund
lndo Japan Emerging Technology & Innovation Fund Japan and India committed to strengthen industrial competitiveness in both countries by creating funds to invest in India's fast-growing start-ups RNAM (as a General Partner) signed letter of intent along with Limited Partners: Nippon Life, Mizuho
Slide 23: ETF - Future Ready
ETF - Future Ready Experience Only AMC with 17 years of experience in managing ETFs Innovator in Gold ETFs & Money Market ETFs Innovators First AMC to launch ETF jointly in partnership with GOI as a part of divestment program Launched ETFS Reliance India Nifty 50 ETF in Australia in June 2019 Larges
Slide 24: Offshore Business
Offshore Business Managed & Advise AUM of over INR 84.5 Bn Representative Subsidiaries Office Singapore - Mauritius Dubai Singapore Mauritius RAMS Equities Portfolio Fund - UCITS Reliance Emergent Distribution Service RAMS Investment Unit Trust - IFIF India Fund Center Cohesion Best Idea's Fund - SI
Slide 25: Global Presence
Global Presence Japan Arg entina / e Strategic Partnership • Local - Distributor Launched - ETFS Reliance India Nifty 50 ETF in Australia ❖ Nippon Life Company NIPPON LIFE ASSET 24 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 26: Other Initiatives
Other Initiatives ❖ Nippon Life Company NIPPON LIFE ASSET 25 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 27: Brand Initiatives
Brand Initiatives Constitution of Investing #PowerlnPortfolio -!) •• • • •::·.: ....... ........,. .. ... -~-..-... . :--!.--- : .~.-:.. -- - ..... ... ..... ~ ..... ... ........... ' . . ............ . . ... . .. Father's Day Mothers Day NIPPON LIFE ASSET 26 ReLIANCe MANAGEMENT LTD Nippon Life Comp
Slide 28: Leaders in Investor Education
Leaders in Investor Education . ,- I f • . • f • ,: I I . •, . f ,-•• •.,' ~ • -.. ..... 1;\.n,,t.i,1 ,,,.,.,s,.,,,...... EDGE Learning Academy : Ql FY20 Investor Education Unique Mobile App MFx Locations 162 T-30 Programs 69 Programs 22 Cities B-30 8,336 Investors 93 Programs 59 Towns Dedicated Inv
Slide 29: About Nippon Life
About Nippon Life ❖ Nippon Life Company NIPPON LIFE ASSET 28 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 30: About Nippon Life Insurance
About Nippon Life Insurance Nippon Life Insurance Company is a Fortune 500 company 130 year old history was founded as Nippon Life Assurance Co., Inc. in July 1889 Second largest Insurance company in Asia* Largest market share in Japan among private life insurance companies# Presence acros
Slide 31: Nippon Life Group
Nippon Life Group Nippon Life Group ❖ HI SSAY Nippon Life Domestic Insurance Business Asset Management Business Overseas Insurance Business Mitsui Life MLC Life Insurance Nissay Asset Management (82.6%) (80.0%) Revenues from insurance and (100.0%) Revenues from insurance and AUM (2017/3): $98.4bn re
Slide 32: Deal Timelines
Deal Timelines ❖ Nippon Life Company NIPPON LIFE ASSET 31 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 33: Timelines
Timelines Nippon life Insurance signs Binding Definitive agreement with May 23rd 2019 Reliance Capital Limited to increase stake in RNAM upto 75% Sale of 7.89 % holding in RNAM by Reliance Capital Limited under May 27th 2019 First Offer for Sale June 14th 2019 Sale of 2.86% holding in RNAM by Relian
Slide 34: Financial Overview
Financial Overview ❖ Nippon Life Company NIPPON LIFE ASSET 33 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 35: Adoption of Ind AS 116 - Leases
Adoption of Ind AS 116 - Leases Background Ind AS 116 - Leases has come into effect from April 1,2019 Eliminates the classification of leases between operating and finance lease Leases are required to be initially recognized as a lease liability for the obligation to make payments as a rig
Slide 36: Financial Summary - As per IND AS
Financial Summary- As per IND AS Consolidated INR in Mn. Particulars Ql FY20 Ql FY19 Revenue from Operations 3,251 3,945 Operating Expenditure 1,799 2,617 Fee & Commission Expenses 252 666 Employee benefits expense 825 677 Finance cost 17 Other Expenses 629 1,186 Depreciation 76 88 Core Operating Pr
Slide 37: Dividends
Dividends Return on Equity of 19% in FY19 Earnings Per Share (INR) Dividend Payout (INR Bn) FY16 FY17 FY 18 FY19 FY 16 FY 17 FY 18 FY19 Board Declared Second Interim Dividend of INR 3 Per Share on Apr 29th, 2019 91% of FY19 Earnings shared with Shareholders Paid cumulative dividend of INR 20+bn in l
Slide 38: Board Of Directors
Board Of Directors ❖ Nippon Life Company NIPPON LIFE ASSET 37 ReLIANCe MANAGEMENT LTD Joint Vonturo botwoon Rolionco Copitol & Nippon life Gtoup
Slide 39: 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 40: Profile of Board Members
Profile of Board Members Mr. Minon, Kimura (Associate Director) Executive Officer, Head of Asia Pacific at Nippon Life Insurance Company Mr. Akira Shibata (Associate Director) General Manager I 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.
NlPPON LIFE ASSET ReLIANCe MANAGEMENT LTD - Nippon Life Company Joint Venture belwecn .Relfancc Capital & Nippon Life Group Thank you for your time. 41
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