Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q1 FY23 Earnings Presentation
48 slides from Nippon Life India Asset Management's earnings presentation, Jul 28, 2022
Slide 1: Exchange filing cover letter
July 28, 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 Q1 FY23
Investor Presentation Q1 FY23 July 2022
Slide 3: Highlights
Highlights Q1 MF QAAUM market share at 7.40% - up 16bps Q1 MF QAAUM at INR 2,794 billion - up 16% NIMF has the largest investor base in the Industry 18 million investor folios led by strength in Retail segment - up 1.3 mn in Q1 NIMF has 13 million Unique Investors - up 76% NIMF’s share of Industry’s
Slide 4: NAM India - Profile
NAM India - Profile One of the largest Asset Manager in India, with 27 years of track record 275 Locations NAM India AUM INR 3.31 trillion (as of Jun 30, 2022) 970+ Employees Mutual INR 2,618 bn* Funds 85,500+ Distributors Managed INR 611 bn 11.2 mn Accounts Q1 FY23 Trnx International INR 77 bn 18.3
Slide 5: Key focus areas - Being Future Ready
Key focus areas - “Being Future Ready” Improvement in performance of schemes continue to support gains in overall Consistent fund performance market share • Strong position in the Retail segment; largest investor base in the industry De-risking through • Dominant position (74% share in market volume
Slide 6: Industry AUM Trend
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Slide 7: Quarterly AUM
Quarterly AUM Industry AAUM (INR bn) 38,209 38,380 37,747 36,208 10% 11% 11% 33,179 10% 9% 12% 13% 13% 14% 14% 30% 28% 27% 25% 33% 49% 49% 50% 44% 47% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Equity Debt Liquid ETFs Equity AUM (+29%) and ETF (+40%) grew, while fixed income assets fell by 5% (vs. Q1 FY22);
Slide 8: NIMF - AUM Trends
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Slide 9: Quarterly trends
Quarterly trends (INR bn) Mutual Fund QAAUM MF QAAUM Mix 7.4% 7.4% 7.3% 7.3% 17% 17% 18% 20% 22% 7.2% 12% 12% 12% 12% 14% 30% 29% 27% 26% 23% 2,655 2,806 2,833 2,794 2,404 41% 43% 43% 42% 42% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-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 One of the lowest investor complaint ratios in the Industry Q1 FY23 Investor Complaints (% of total folios) ABSL MF 0.001% SBI MF 0.004% Kotak MF 0.006% HDFC MF 0.006% ICICI Prudential MF 0.004% NIMF 0.001% NIMF has 15 complaints per million folios vs. av
Slide 12: Varied product offerings to meet investors' diverse needs
Varied product offerings to meet investors’ diverse needs Robust pipeline to strengthen both active and passive segments Nippon India S&P Nippon India Nifty AAA PSU Bond Nippon India Plus SDL - 50:50 Index Fund Europe 350 Index Innovation Fund (Maturity <4 years) Fund Nippon India Nifty AAA PSU Bond
Slide 13: Retail Execution
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Slide 14: Largest investor base in the Industry
Largest investor base in the Industry (in million) Unique Investors Total Folios 13.1% 13.6% 37.4% 12.6% 35.7% 11.9% 11.1% 32.3% 32.5% 31.4% 13.2 17.0 18.3 12.0 15.2 10.0 13.3 8.6 11.4 7.5 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 B-30 Folios ETF Folios 59.8% 58.1% 60.1%
Slide 15: Higher share of Retail & B-30 segments
Higher share of Retail & B-30 segments Investor segment-wise breakup of AAUM (%) NIMF 27% 23% 50% Industry 23% 32% 45% Retail SBI MF 14% 27% 59% HDFC MF HNI 24% 38% 38% ICICI Prudential MF 18% 39% 43% Corporate ABSL MF 23% 25% 52% Contribution from B-30 locations (B-30 AAUM / Total AAUM) NIMF 17.8%
Slide 16: Systematic Transactions
Systematic Transactions Quarterly Book (INR bn) Folios (mn) 4.1 4.0 3.7 Q1 FY23 Book (INR bn) 3.6 3.4 8.0 22.8 20.1 21.3 7.2 7.5 17.5 18.8 Apr-22 May-22 Jun-22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 SIP accounts continuing for >5 years As on Folios at 4.1 mn (+20%) 51% June 30, 2022 AUM at INR 482
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 ~74% 60% 14%+ INR 601 bn INR 68 bn Volume Share* Share of folios Market Share ETF QAAUM Gold ETF QAAUM NSE volume (Apr - Jun 2022) (INR mn)** Nifty Bank ETFs & Nifty Mutual Funds Nifty 50 ET
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: Mobile-first strategy propelling DIY transactions
Mobile-first strategy propelling DIY transactions across Investor & Partner Ecosystem People’s Choice Platform – The For the Self-Serving Millennials Go-to Transaction & Service Engine Playstore Rating: 4.4 Transaction in all Funds (Boosted from 3.5) Service Bouquet 1.2 mn+ Downloads The All-New Nip
Slide 23: Digital Business
Digital Business Lumpsum & New SIP Registration Digital Purchases (lakhs)* Q1 FY23 7.5 25% Q1 FY22 6.0 ❑ Digital business witnessed a growth of 25% in Q1 FY23 vs. Q1 FY22 ❑ Digital (New Purchase and SIP registrations) transactions crossed 750k in Q1 FY23 ❑ Digital contribution-to-total NIMF purchase
Slide 24: Key initiatives undertaken in Q1 FY23
Key initiatives undertaken in Q1 FY23 Performance Campaigns reaching new horizons Successful use of Adobe Suite to increase quality & quantity Partnered with Google in their India first initiative of DAP (DTC Acceleration Program) to scale up DTC efficiently Launched Beta test phase for AMP Email ca
Slide 25: Distribution
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Slide 26: Strong Distribution
Strong Distribution Total base of empaneled distributors rose to over 85,500 75 93 79 ~85,300 Banks National Distributors Alternate Mutual Fund (incl. PSU banks) Distributors Large base of MFDs - one of our biggest strengths 25
Slide 27: Leveraging partnership with MFDs
Leveraging partnership with MFDs Overall Distribution Mix Mix of Distributed Assets Banking Distributors Distributed 22% Direct Assets Mutual Fund Channel 44% Distributors 56% 58% National Distributors 20% Distributed Assets (investor-wise) AUM (INR bn) Corporate 19% 613 Retail 51% 347 HNI 230 29% R
Slide 28: Other Businesses
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Slide 29: Nippon India Alternate Investments (NIAIF)
Nippon India Alternate Investments (NIAIF) ❑ NIAIF delivered consistent long-term investment performance across asset classes ❑ As on June 2022, NIAIF raised commitments of INR 47 billion across funds ❑ Fully committed the two Real Estate mandates of offshore investors ❑ Follow-on fund to existing r
Slide 30: Offshore Business - Creating expressways globally
Offshore Business - Creating ‘expressways’ globally Key presence Singapore Dubai Japan 117 115 114 (INR bn) 101 101 30 28 27 30 23 Advisory 71 87 87 88 77 Managed Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Other International Tie Ups ETFS Reliance India Nifty 50 ETF Godo Kaisha Genkai India Investment* Bual
Slide 31: ESG Focus
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Slide 32: ESG at NAM India
ESG at NAM India To create a sustainable future for our stakeholders by integrating environmental, social Vision and governance (ESG) principles into our business operations, investment processes and stewardship ❑ NAM India became a signatory to UN-supported Principles for Responsible Investment in
Slide 33: ESG Initiatives
ESG Initiatives Environment Social Governance 2-fold approach to environmental stewardship Community Development Programs Fostering Ethics and Governance • As a responsible investor, NAM intends ▪ NAM contributed INR 130 million towards ▪ NAM’s code of ethics rest on the to consider environmental pe
Slide 34: Financial Overview
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Slide 35: Financial Summary
Financial Summary Consolidated (INR mn) Change Change Particulars Q1 FY23 Q1 FY22 Q4 FY22 FY22 (YoY) (QoQ) Revenue from Operations 3,161 3,023 5% 3,380 -6% 13,066 Operating Expenditure 1,448 1,332 9% 1,381 5% 5,470 Fee & Commission 114 117 -2% 160 -29% 513 Employee benefits 781 697 12% 745 5% 2,903
Slide 36: Financial Assets
Financial Assets Constituents of Financial Assets (INR mn) Jun 30, 2022 Mar 31, 2022 Investment in NIMF’s schemes 27,731 27,090 - Equity 2,418 2,694 - Debt 25,313 24,396 Bank FDs and tax-free bonds 3,756 3,995 Other assets 2,931 2,706 Total 34,417 33,790 NIMF - NIMF - Other Other Bank FDs Equity Ban
Slide 37: Operating Metrics
Operating Metrics Benefits from operating leverage to manifest as AUM increases QAAUM / Branch QAAUM / Employee (INR bn) 14.8 14.6 11.7 11.5 10.4 2.0 2.0 2.3 2.9 2.9 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Profit / Branch Profit / Employee (INR mn) 38.8 34.4 24.4 23.8 21.1 6.9 7.7 4.7 4.2 4.0 FY19 FY20 F
Slide 38: Dividend History
Dividend History Earnings Per Share (INR) Dividend Payout (INR bn) 6.84 11.81 10.90 4.93 4.43 7.94 6.69 3.44 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 39: Shareholding Pattern
Shareholding Pattern Constituent of S&P BSE 150 MidCap Index Banks / MFs / S&P BSE 200 Insurance / AIFs Retail / 8% S&P BSE 250 LargeMidCap Index Corporates / Others S&P BSE 400 MidSmallCap Index 11% S&P BSE 500 S&P BSE Financials Ex-Banks 30 Index Foreign Investors 7% S&P BSE AllCap Nippon Life Ins
Slide 40: Thank you for your time! Stay safe!
Thank you for your time! Stay safe!
Slide 41: Annexure
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Slide 42: About Nippon Life Insurance
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Slide 43: 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$ 745 bn3 ❑ 58 Asset Management related & 21 Insurance related operations worldwide4 Asset Management Presence in India Life Insurance Shareholding - 73.8
Slide 44: 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 (FY2021-22): (49.0%) $4.2bn (73.8%) GWP (FY2021-22): $
Slide 45: Board Of Directors
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Slide 46: 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 47: 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 48: 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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