Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Q4 FY19 Earnings Presentation
46 slides from Nippon Life India Asset Management's earnings presentation, Apr 30, 2019
Slide 1: Cover letter to exchanges: Investor Presentation
❖ Nippon Life Company - - NIPPON LIFE ASSET ReLIANCe MANAGEMENT LTD April 30, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Dalal Street, Fort, Plot No. C/1 , G Block, Mumbai 400 001 Sandra Kurla Complex, BSE Scrip Code: 540767 Sandra
Slide 2: Investor Presentation - Q4 FY19
N IPPON LIFE ASSET ReLIANCe MANAGEMENT LTD .... Nippon Life Company Joint Vcmivre b€twee n ~lance Capitol & NiPPQn life:Grol)p Investor Presentation -Q4 FY19
Slide 3: Key Highlights
Key Highr19hts One of the largest /JMCs In India - Managing AUM of INR 4.2 tn Net Profit at INR 1.51 bn for Q4 fY19 grew by 34% & INR 4.86 bn for fY19 grew by 7% Largest Retail AMC - INR -900 bn Retail Received highest share of Retail Incremental assets- lNR 167 bn Annualized SIP Book of INR 103 bn
Slide 4: RNAM Snapshot
RNAM Snapshot ❖ Nippon Life Company NIPPON LIFE ASSET 3 ReUANce MANAGEMENT LTD Jo;nt Ventu« between Rdian<c Capital & N;ppan Life G.aup
Slide 5: Snapshot
Snapshot RNAM is one of largest asset manager in India, with 23 years of track record RNAM AUM as of MAR'l 9 INR 4.22 tn Mutual Funds Managed Accounts International INR 2,278 bn INR 1,913 bn INR 31 bn* Advisory INR 55 bn Trusted Asset Manager - Holding Fund Mandates from - a PFRDA EPFO •••• ESIC ~ t
Slide 6: RNAM Quarterly Performance
RNAM Quarterly Performance NIPPON LIFE ASSET 5 ReUANce A MANAGEMENT LTD Y Nippon Life Company . " • . c • • • ·, ~ - 10 1. "1 cn turo between ...c 1taocc opda1°' N,ppon Li c urau p
Slide 7: RNAM AUM (INR Bn)
RNAM AUM (INR Bn) ■ MF ■ Pension ■ Managed ■ Offshore 27 27 4.048 31 4.144 31 4,221 28 3.964 4.074 32 33 34 34 35 1,696 1,750 1,806 1.178 Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 RNAM AUM one of the highest in Industry - INR 4.22 Tn MF contributes 54% of overall AUM NIPPON LIFE ASSET ❖ ~ End of Period Ass
Slide 8: Leading asset management player
Leading auet management player RMF QMUM ONR Bn) 2,449 2,404 2,448 2,363 2,336 - - - • 5'1, _ _ _ S'I - - - SIJ, Mar'18 Jun'18 Sep'18 Oec'18 Mar'19 ■ Equity ■ Debt ■ Liquid ■ ETFs Composition of Equity Assets Increased by 300 bps YoY I NIPPON LIFE ASSET ❖ ONAfM: ~rtert, A'fliKQl/8 As:lw underMunogeme
Slide 9: Equity AUM
Equity QMUM (Ht bn) Mar'18 Jun'18 Sep'18 Dec'18 Mar'19 RMF Equity Assets grew by 13% YoY RMF Folo Count [mn) Mar'18 Jun'18 Sep18 Dec18 Mar'19 Added - 0.9 mn folios in last 12 months ReUANce NIPPON LIFE ASSET ❖ 8 MANAGEMENT LTD N"1ppon L"f I e C ompany . 1o..' "' " cn turo between •...c 1taocc copda
Slide 10: Focus on Retail & Small towns
Focus on Retan & Small towns Retall At.tAUM ONR bn) Mar'l8 Jun'l8 Sep'l8 Dec'l8 Mar'l9 Highest Retail Assets in the Industry 9 ReUANce NIPPON LIFE ASSET ❖ Source: AMA MANAGEMENT LTD Ni pp on Life Com p an Y . . . . . Jo 1. "1 Ven ture b etween Rch-aocc Cop;tal & N,ppon Life Grou p
Slide 11: Higher Contribution from Retail Assets
Higher Conlribution from Retail Assets Retail have higher share of Equity Assets Retal AAUM growth ONR bn) Retal AAUM / Total AAUM 00 RMF 167 RMF 39% Industry 26% S81 121 HDFC 24% HDFC 109 Birla 21% Birla 90 ICIO 20% ICIO 89 S81 20% RMF Retail AAUM up 22.8% vs Industry growth of 20.4% Source: AMFI R
Slide 12: Beyond 30 cities (B-30) Contribution
Beyond 30 cities (B-30) Conhl,ution J Higher AUM % sourced from B-30 locaffons as compared to Industry [ B-30 AAUM / Total AAUM (%) RMF 20 Industry 15 B-30 has higher proportion of Equity Assets Growing B-30 AUM by increasing on ground presence Source:AMA ReUANce NIPPON LIFE ASSET ❖ 11 MANAGEMENT LT
Slide 13: Systematic Investment Plan - Long & stable Inflows
Systeutatk: Investment Plan - Long & stable Inflows SIP Monthly Flows 3.1 10.0 0 3.5 9.00 3.0 8.00 2.5 7.00 6.00 2.0 5.00 1.5 1.5 4.00 3.00 1.0 3.40 2.00 0.5 1.00 - - Mar'16 Mar'17 Mar'18 Mar'19 • SIP Book (INR bn) - SIP Count (Mn) Annualized SIP book of - INR 103 bn {+14%) - 3.1 mn of SIP accounts
Slide 14: Distribution
Distribution ❖ Nippon Life Company NIPPON LIFE ASSET 13 ReUANce MANAGEMENT LTD Jo;nt Ventu« between Rdian<c Capital & N;ppan Life G.aup
Slide 15: Strong Distribution
Strong Distribution Empaneled - 8,100 New Distributors in FY19; total base at over 73,400 Banks cffibank Deutsche Bank IZI O ,c1c1Bank Standard - - Chartered ~ HDFC BANK J.. AXIS BANK National - Distributors KA RVYIII t• HDFC securities Alternate (incl. PSU banks) b R8LBANK , ... Bank I ~3mfj~ of In
Slide 16: Leveraging relationship with IFA
Leveraging ,-,, luenhlp with IFA I Distribution Mix* J J Growing IFA Bose I ■ Independent Financial Advisors IFA AUM (INR Bn) ■ Banking Distributors ■ National Distributors Mar'l7 Mar'18 Mar'l9 *Exdudilg Direct AUM AsonMar'l9 Derisked Distribution Model No Single distributor contributes more than 5%
Slide 17: Digital the way Ahead
Digital the way Ahead RMF Digffal Purchase + New SIPs rooo) FY18 739 FY19 1085 1of fl!Nery 3 Purchase + SIP concluded on RMF Digital RMF Digital clocking -llmn purchase+SIP Digital Purchase+ SIP witnessed a Growth of 47% y.o.y In FY19, RMF processed - i n c l u d i n g (New SIP} ~ ReUANce NIPP
Slide 18: Conversational Commerce
ConversalM)(tal Conunarce A cutting-edge solution that allows RMF investors to transact on the Simply Save App through a very natural, simple, easy and intuitive medium - the human voice SALIENT POINIS India's first Al powered, transactional oriented, Voice Interface Your voice is our commond 1 Buil
Slide 19: WhatsApp for Business
WhatsApp for Business ::1l.,11 0.37KB/s t: 0 ·,,I ,ii O '.XlKB •st;, al 4t S 34 Sl'> a • f- :...:.• Reliance Mutual... ■• \.. : MUTUAL Dear Partner, ReLIANCe FUND We thank you for being a pioneer in Wealth Sets You Free embracing technology in this ever evolving digital world, the latest one being o
Slide 20: Digital Ecosystem
Digital Ecosystem COMMUNICATE With Partners With Investors With Franchisees Traditional Easy to navigate Website/App for Partners . ,,1, P rudi=TTl ,:_ ::: -~ ••• -:-:;- ••• ~ - I Digital &,-- - ~- -- - ....... www.reliancemutual.com www.rmfpartners.com Retail - Non Traditional RMF Investor APPS PAY
Slide 21: Other Business
Other Business ❖ Nippon Life Company NIPPON LIFE ASSET 20 ReUANce MANAGEMENT LTD Jo;nt Ventu« between Rdian<c Capital & N;ppan Life G.aup
Slide 22: Offshore Business
Offshore Business Managed & Advise AUM of INR 86 Bn Representative Subsidiaries Office Mauritius Dubai RAMS Equities Portfolio Fund - UCITS Cohesion Best Idea's Fund - SIF* Distribution Service Reliance Emergent Center IMSF - Equity Opp. Fund Feeder India Fund across Middle East WIF - India Consumpt
Slide 23: Global Presence
Global Presence Japan South Korea ~ • Spain Italy Thailand UAE (Rep Office) • • ~1 I If Brazil India Chile Singlpore (Subsidiary) --:-7 • / • Mauritius • Australia • Argentina (Subsidiary) Added a Strategic & Distribution Partner in Australia and a Strategic Partner in Japan for the year 2018-19 • L
Slide 24: ETF - Future Ready
ETF - Future Ready Experience Only AMC with 18 years of experience in managing ETFs Innovator in Gold ETFs & Money Market ETFs Innovators First AMC to launch CPSE ETF jointly in partnership with GOI as part of divestment program Largest bouquet of 17 ETFs in the industry across Equities, Debts & ETF
Slide 25: Alternate Investment Fund (AIF)
Allemate lrwesluaent Fund (AIF) At Present Offer Category II & Category Ill AIFs across Real Estate: Reliance Yield Maximiser AIF Series, Reliance Yield Plus AIF Equity: Reliance Equity Opportunities AIF Series Credit: Reliance Yield Opportunities Launched / Incubated the Industry's first
Slide 26: Other Initiatives
Other Initiatives ❖ Nippon Life Company NIPPON LIFE ASSET 25 ReUANce MANAGEMENT LTD Jo;nt Ventu« between Rdian<c Capital & N;ppan Life G.aup
Slide 27: Customer Outreach
Customer Outreach cma ... • Business Building • Engagement • Social Media Presence 14,18,549 1,00,188 1,00,089 Integrated Communication across multiple touch points ---- LIFE ASSET ~ 26 ReUANCe NIPPON ◄ MANAGEMENT LTD I e c·ompQny N.1ppon L"f , .101 nl vcnture b alwocn ....c 1-,anco cap,l• - a·i '"•
Slide 28: Brand Initiatives
Brand lnltiaHNS Constitution of Large Cop Fund Investing ·mcgine if al! you, (hE!SS pi~cs,s •N&(~ Q1.1~~flS1 , ...~ W'.~' Reliance large Cop Fvnd ,.,.,...,.,.t><.,,y,:,1 •,1v·1:,.,..~.-,-.•-.,-.:,)l«.: ;OO<'." :;7;;,::~., •.~.'i:~.: ....~·,..:·,\t;;·~:;~ ,. , ................ . ... . ,;,,,,. ... ••·
Slide 29: Stable & Experienced Team
Stable & Experienced Team Strong Investment Team Dedicated Credit comprising of 68 Research team of 8 members members Awards & Recognition BFSI ■ India's Best Companies --- ..... . BESTEMPLOYER BESTEM PLOYER To Work For 2018 • • 201 6 INOIA I 2018 TTTE F.iJONO)n UTThrEs IIll 2 8 28 - --- ReUANCe NIP
Slide 30: Leaders in Investor Education
Leaders in Investor Education ~EOG . . [·, , , .; •.,,, ,, ,.-,., I . I EDGE Learning Academy: FY 19 I Investor Education Unique Mobile Apps MFx Locations 1,312 T-30 Programs 602 Programs 30 Cities B-30 67,900+ Investors 710 Programs 194 Towns Launched a dedicated Investor Education App MFx ---- LIF
Slide 31: Regulatory Update
Regulatory Update NIPPON LIFE ASSET 30 ReUANce A MANAGEMENT LTD Y Nippon Life Company . " • . c • • • ·, ~ - 10 1. "1 cnturo between ...c 1taocc opda1°' N,ppon Li c uraup
Slide 32: Regulatory Update
Regulatory Updale Circular Issued with effect ftom October 22, 2018 No Upfront Commission on lumpsum investment Upfront Commission allowed only on SIP from New Investors All Scheme related expenses to be paid from Scheme Only, and not from AMC Incentive for inflows from B-30 cities now be ba
Slide 33: Financial Overview
Financial Overview NIPPON LIFE ASSET 32 ReUANce A MANAGEMENT LTD Y Nippon Life Company . " • . c • • • ·, ~ - 10 1. "1 cn turo between ...c 1taocc opda1°' N,ppon Li c urau p
Slide 34: IND AS Transition
IND AS Transition RNAM has adopted Indian Accounting Standards (IND ASI with effect from 1st April 2018 Results of Q4 FY19 & FY19 are prepared as per IND AS requirements Accordingly previous year quarter figures have been restated ❖ Nippon Life Company NIPPON LIFE ASSET 33 ReUANce MANAGEMENT L
Slide 35: IND AS Transition
IND AS 1"anstflon • Key Changes Impact INDAS I Management Fees I I Revenue II No change II No Change I Investment Income I other Income II Cost Basis II Fair Value I Distribution Expense I Expense I No Change II No Change I ESOP I Expense Intrinsic Method Black - Scholes Pricina Model Asset Mgt. Rig
Slide 36: Financial Summary - As per IND AS
Rnancial Summary-As per IND AS Consolidated NllnMn. fte¥enu& hOM oa, .. atfo(.s Op1,allng fxp1r.dlt1i1M 9,496 fee & Commission Expenses 2,583 3,105 Employee benefits expense 2,935 2,572 other Expenses 3,877 5,146 Depreciation & Finance Charges 101 107 eore Ope,oling Ploflt 5,290 4,981 other Income 1
Slide 37: Financial Summary - As per IND AS (Quarter)
Rnancial Summary-As per IND AS Consolidated NllnMn. Rewnue ftam ot1e1utlo,• ~ 4.381 Opa,otfnt ecp ardt-.i.e 1;154 1,,865 Fee & Commission Expenses 628 1,034 Employee benefits expense 768 818 Other Expenses 622 1,175 Depreclatton & Finance Charges 1164) (162) Cont Opee'21Hnu Ploftt 1,571 1,516 Other
Slide 38: Consolidated Financials - As per IND AS
Consollduled Flnondals - As per IND AS NRinMn. Asat311t Asat3Pt Mar'19 Mar"II Ananclal Assets 23,603 21.276 Non Financial Assets 4,155 5,949 lblul Assets 27,751 27,225 Asat311t Asat3Pt Uabirdies & Equity Mar'19 Mar"II Ananclal Liabilities 1,080 1.970 Non- Financial Liabilities 978 948 Equity 25.700
Slide 39: Reconciliation of consolidated profit with previous GAAP
Reconciliation of consolidated profit wilh previous GAAP NllnMn. Pn:dlt Reconcllatfon for the period ended Mar 311t, 2018 Net prvftt afler tax as f'9fO(ted under previous GAV \611 5,221 Ad)ust,uant fnarea1ina/(dac:eeaslng) net pcofft aflar tax as rapottad under prewfous~: Fair valuation of financial
Slide 40: Ind AS - Equity Reconciliation with previous GAAP
Ind AS - Equity Reconclliaffon wilh -,nwlous GAAP NtinMn. AsatSPtMan:h 2018 lblal Equity lshcnhald11~ funds) GI par previous GMP 22,865 Adjustenents Investments in Mf / Pref. Shares - Fair value through P&L 572 Reversal of Fair Value Gain on Equity Investment - FVOCI 19 Employee Share Based Payments
Slide 41: Dividends & ROE
Dividends & ROE I Return on EquHy of 19% In FY19 I Earnings Per Share (INR) DMdend Parc,ut (Nt In) FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Board Declared Second Interim Dividend of INR 3 Per Shore on Apr 29th, 2019 91% of FY19 Earnings shared with Shareholders Paid cumulative dividend of INR 20+bn i
Slide 42: Board Of Directors
Board Of Directors NIPPON LIFE ASSET 41 ReUANce A MANAGEMENT LTD Y Nippon Life Company . " • . c • • • ·, ~ - 10 1. "1 cnturo between ...c 1taocc opda1°' N,ppon Li c uraup
Slide 43: Profile of Board Members
Profile of Board Members Mr. Kanu Doshi !Independent Dlredorl Dean - Anance, at Wellngkor Institute of Management. Mumbai Mr. 5. C. 1Upalhi !Independent Director! Held several senior lewl posts including Principal Secretary. Finance and Industry in Govt. of UP. Joint Seaetary !Economic Affairs); Add
Slide 44: Profile of Board Members
Profile of Board Members Mr. Minon, Kimura [Associate Director) Executive Officer, Head of Asia Pacific at Nippon Ufe Insurance Company Mr. Aldra Shibata (Associate Director) General Manager/ Global Business Planning Department at Nippon Life Insurance Company Mr. SUndaap Sldca [Associate Director)
Slide 45: Disclaimer
Disclaimer Thts prasentaffon does not consttMe a ptospectus, an offering ~ r . an adlwtlsement a p!iYale placement offer letter or offer documem « an offer, or a sollc:Jtal!On of OIT'f offer. to ptJ'Chase or sell any securttles undel' the companies Act, 2013 and the nJes mode lherelJnder, the 5ecurf
Slide 46: Thank you for your time.
N IPPON LIFE ASSET ReLIANce MANAGEMENT LTD - Nippon Life Company Joint Venture betweon R.gl;once Gopifol & Nippon life Group Thank you for your time. 45
Nippon Life India Asset Management — Q4 FY19 Earnings Presentation on 6ix