Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q2 FY25 Earnings Presentation
54 slides from Nippon Life India Asset Management's earnings presentation, Oct 24, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
October 24, 2024 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 – Q2 FY25
Data Classification: Public Investor Presentation – Q2 FY25 Oct-2024
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) 7.46%* 8.20%* 8.29%* 47.0 59.0 66.2 12.3% 12.3% 12.3% 12.3% 10.1% 9.4% 21.9% 18.2% 17.4% 53.5% 59.4% 60.9% Sep-23 Jun-24 Sep-24 Equity Debt Liquid ETFs ▪ Proportion of Equity assets have increased over the last year ▪ Incre
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 28% HNI 34% Corporate 38% T-30 81% ▪ Individual segment contributes to 62% of AUM ▪ B-30 locations contribute 19% of AUM Source: AMFI Data based on MAAUM for the last month of the quarter
Slide 7: Systematic Investments
Data Classification: Public Systematic Investments Monthly SIP flows (INR bn) SIP folios (mn) 90 99 213 245 71 160 Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-24 SIP AUM (INR bn) ▪ Steady growth witnessed in the monthly SIP flows (+53% YoY) ▪ At INR 245 bn, Sep-2024 recorded all- 13,817 time high monthly
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 5.55 trn* INR 825 bn INR 6.54 trn* INR 172 bn (Advisory INR 22 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 Sep-24 QAAUM - INR 5,492 bn, up 57% YoY & Investor Folio Base 2 14% QoQ 3 Highest Investor Base – 28.8 mn Market share at 8.29% | +83 bps YoY
Slide 11: Key Highlights (2/2)
Data Classification: Public Key Highlights (2/2) ETF Sep-24 QAAUM - INR 1,481 bn Profitability 6 Market share at 18.2% (+414 bps YoY) 7 Q2 FY25 Profit After Tax at INR NIMF’s Gold ETF, is the 11th largest Passive 3.60 bn (+47% YoY / +8% QoQ) Gold Fund in terms of AUM globally Digital Customer Centri
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 27% 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 44 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) 3,506 4,838 5,492 23.0% 26.8% 27.0% 11.0% 8.5% 7.7% 19.2% 14.9% 14.2% 46.8% 49.8% 51.1% Sep-23 Jun-24 Sep-24 Equity Debt Liquid ETFs ▪ Share of Equity AUM has increased over Sep-2023 level to 51% ▪ Share of ETF AUM has inc
Slide 15: Optimal Mix of Investors
Data Classification: Public Optimal Mix of Investors MAAUM (INR bn) 3,618 5,093 5,606 42% 42% 40% (7.7%)* (8.9%)* (8.6%)* 28% 28% 29% (6.3%)* (6.9%)* (7.1)* 30% 30% 31% (8.9%)* (9.2%)* (9.2%)* Sep-23 Jun-24 Sep-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) 11.5% 11.8% 11.7% NIMF 20.5% 10.3 11.5 8.2 Industry 18.5% Sep-23 Jun-24 Sep-24 B-30 MAAUM (INR bn) 8.6% 9.0% 9.1% 999 1,150 719 Sep-23 Jun-24 Sep-24 Source: AMFI; 15 Calculated on MAAUM
Slide 17: Wide Reach
Data Classification: Public Wide Reach Unique Investors (mn) Total Folios (mn) 36.2% 37.4% 37.7% 13.6% 13.8% 13.7% 17.5 18.9 28.8 14.6 26.3 21.3 Sep-23 Jun-24 Sep-24 Sep-23 Jun-24 Sep-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 1,08,000 with highest single Distributor concentration at ~5% of assets 99 76 87 1,07,800+ Banks National Alternate Mutual Fund Distributors (incl. PSU banks) Distributors Distributed Assets (c
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: Power of Choice for Gen Z
Data Classification: Public Power of Choice for Gen Z 19
Slide 21: Strong Digital Presence
Data Classification: Public Strong Digital Presence Lumpsum & New SIP Registration Digital Purchases (mn)* Q2 FY25 3.97 2.6X Q2 FY24 1.52 Digital Business 70% Digital 30/min Every two seconds 3.97 Mn Q2 FY25 transactions Q2 FY25 contribution to Q2 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) Q2 FY25 Book (INR bn) 90.3 29.1 29.9 31.4 75.3 52.7 18.3 19.4 27.4 Jul-24 Aug-24 Sep-24 FY21 Avg. FY22 Avg. FY23 Avg. FY24 Avg. Q1 FY25 Q2 FY25 SIP accounts continuing for >5 As on Folios at 9.8 mn (+63% Yo
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 56% 57% 18% INR 1,481 bn INR 122 bn Volume Share* Share of folios^ Market Share^ ETF QAAUM Gold ETF QAAUM NSE volume (Jul - Sep 2024) (INR mn)**
Slide 24: Nippon India ETF Gold BeES
Data Classification: Public Nippon India ETF Gold BeES NIMF Gold ETF ranks among top 15 Funds globally in terms of Net Flows for the year* ▪ NIMF Gold ETF attracted $373 Mn during the Calendar Year ▪ Globally, NIMF Gold ETF is the 8th largest in terms of flows ▪ Globally, NIMF Gold ETF is the 11th L
Slide 25: Nippon India Alternative Investments (NIAIF)
Data Classification: Public Nippon India Alternative Investments (NIAIF) Total Commitment Raised (Till date) Sep-23 Jun-24 Sep-24 INR 57.8 bn INR 65.1 bn INR 67.7 bn ▪ Currently offers products across four business lines namely Public Equity, Real Estate Credit, Performing Credit & Tech VC ▪ During
Slide 26: Offshore Business - Creating 'Expressways' Globally
Data Classification: Public Offshore Business - Creating ‘Expressways’ Globally Key presence Singapore Dubai Japan 194 174 (INR bn) 130 22 23 20 Advisory 151 172 Managed 110 Other International Tie Ups Xtrackers India Govt. Bond UCITS ETF Godo Kaisha Genkai India Investment* Bualuang Bharata Fund Ni
Slide 27: 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 28: 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 29: Investment Team
Data Classification: Public Investment Team 67 Members Investment Team Strength 26 16 Equity MF Fixed Income MF 23 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 30: ESG Focus
Data Classification: Public ESG Focus 29
Slide 31: 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 32: CSR
Data Classification: Public CSR NAM has allocated INR 147 mn towards CSR initiatives in H1 FY25 Number of Beneficiaries from Focus Areas NGO Partners SDG Linkage projects in FY25 1,313 ▪ Tata Memorial Centres Healthcare Community members from ▪ Vision Foundation of India economically weaker section
Slide 33: Financial Overview
Data Classification: Public Financial Overview 32
Slide 34: Financial Summary
Data Classification: Public Financial Summary Consolidated Q2 Q2 Change Q1 Change H1 H1 Change Particulars (INR mn) FY24 FY25 FY24 (YoY) FY25 (QoQ) FY25 FY24 (YoY) Revenue from Operations 5,713 3,975 44% 5,050 13% 10,763 7,516 43% 16,432 Operating Expenditure 2,060 1,650 25% 1,970 5% 4,030 3,261 24%
Slide 35: Financial Assets
Data Classification: Public Financial Assets Constituents of Financial Assets (INR mn) Sep 30, 2024 Jun 30, 2024 Investment in NIMF’s schemes 32,254 35,129 - Debt 27,112 30,380 - Equity 5,142 4,749 Bank FDs and tax-free bonds 3,650 3,570 Other assets 4,632 4,343 Total 40,537 43,042 NIMF - NIMF - Oth
Slide 36: 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 37: Thank you for your time!
Data Classification: Public Thank you for your time! 36
Slide 38: Annexure
Data Classification: Public Annexure 37
Slide 39: Macro Trends
Data Classification: Public Macro Trends 38
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 43
Slide 45: 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 44
Slide 46: 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 47: About Nippon Life Insurance
Data Classification: Public About Nippon Life Insurance 46
Slide 48: 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 49: 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 50: Board of Directors
Data Classification: Public Board of Directors 49
Slide 51: 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 52: 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 53: 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 54: 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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