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Nippon Life India Asset Management Ltd.

BSE: 540767 Sector: Financials
NSE: NAM-INDIA ISIN Code: INE298J01013
BSE 00:00 | 29 Nov 370.50 -5.70
(-1.52%)
OPEN

378.55

HIGH

378.60

LOW

361.00

NSE 00:00 | 29 Nov 369.10 -7.20
(-1.91%)
OPEN

375.90

HIGH

375.90

LOW

360.80

OPEN 378.55
PREVIOUS CLOSE 376.20
VOLUME 16626
52-Week high 476.50
52-Week low 283.45
P/E 31.51
Mkt Cap.(Rs cr) 23,033
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 378.55
CLOSE 376.20
VOLUME 16626
52-Week high 476.50
52-Week low 283.45
P/E 31.51
Mkt Cap.(Rs cr) 23,033
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nippon Life India Asset Management Ltd. (NAM-INDIA) - Chairman Speech

Company chairman speech

Letter to Shareholders

Dear Shareholders

Greetings!

Throughout our existence NAM India has been prepared for change wellbefore there was a need. We realised that a crisis is not the best time to charter a newcourse for an organisation; but to fall back on values mission and vision as thelodestar to steer our way out of challenges. So much before the pandemic unfolded lastyear we at NAM India were aggressively working towards building Digital Leadershipstrengthening our Board and bringing a sharper focus on environment societal andgovernance (ESG) factors to fulfil our commitment to you our investors: To consistentlycreate a better Future.

As a testament to your faith and our credibility among domestic andforeign investors we launched multiple new funds during the year including the MultiAsset Fund which grew to be one the largest digital NFOs in FY2021. This wouldn't havebeen possible without our process-driven approach that enables us to prudently weighopportunities against risk. In May 2020 NAM India's Board decided that all NIMF schemeswill make new investments in only AA and above rated issuers. We will take more suchdecisions fortified by the insights from our Board. Last year NAM India inducted newboard members - Mr Yutaka Ideguchi Mr Parekh Ashvin and Mr B Sriram - who bring with themdecades of experience in international operations oversight credit & risk and othercritical operational aspects. Our professional board will help us in our quest to beIndia's responsible corporate citizen with the highest principles and strong corporategovernance.

They will help us be future ready and capture opportunities as we marchahead to create a more secure world for our investors.

A Milestone Year for NAM India

While the global health crisis made 2020 unprecedented for us at NAMIndia it has been a milestone year for all the right reasons. We as Nippon Life IndiaAsset Management (NAM India) celebrated the first full year with Nippon Life Insurance(NLI) as the principal shareholder. This relationship is a matter of great pride and asource of strength for us as it fuses NLI's global dominance with NAM India's deepunderstanding of the Indian investor market even beyond big cities. We acquired 350 newinstitutional investors and over 9 lakh unique investors in just the last year - a hugetestament to the acceptance of the new brand. We are also proud to announce that NAM Indiareceived the mandate to manage the investments of Post Office Life Insurance Fund andRural Post Office Life Insurance Fund becoming the only private AMC in the country tohave ever received such a mandate. NAM India manages over INR 1.2 lakh crore on account ofgovernment mandates.

Orchestrating Tomorrow through technology and a sharper focus on ESG

Due to our digital preparedness we quickly brought in bring in 100%operational efficiency ever since the first lockdown. Our digital preparedness and strongroots in the industry enabled us to assuage investor fears and communicate effectively. Weconducted over 500 online training sessions for our 78400 distributors spread across thelength and breadth of the country; engaged with our partners to ensure they are fullyequipped to guide investors through uncertainties. We have also ensured our leadershipstays connected with our employees through the #Connect2Care initiative and portfoliomanagers stay connected with even offshore investors via the 400+ calls and webinarsconducted over the last year.

Digital leaders in a Post-COVID World

In collaboration with our 20+ digital partners we have built a robustdigital ecosystem that allows fast secure payments and processes across the investorjourney.

• Over 50% of our purchases have been executed through digitalassets

• New digital SIP purchases grew over 60%

• Enhanced our digital payment ecosystem with automated SMS/emailcommunications

• Improved our platform experience with push notifications on ourbranded apps e-KYC process among other initiatives

• Received multiple awards including "Most Impactful Projectin Digitization / Paperless Initiative" by IBS Intelligence Global FinTech InnovationAward 2020

'Investor First1 philosophy

Our customer-first focus has always enabled us to get a first-moveradvantage; we spotted passive investing as a trend well before it became one enabling usto become one of the largest players in the ETF space in India with 72% share of exchangevolumes. We introduced a slew of passive investment products to provide our investors withlow-cost investment options that cater to different risk appetites and return targets. Ourpassive products offer options to invest across market caps to capture market as well asindustry wisdom.

NIMF has built an industry-best suite of fixed income and equityproducts in this space and garnered an AUM of over INR 37000 crore. We gained 14 lakh newETF folios in 2021 alone. NIMF has 42% market share of the total industry ETF folios.

We have launched the first-of-its-kind ETF Nippon India ETF Nifty CPSEBond Plus SDL - 2024 Maturity which has provisions for open-ended target maturity schemesand only invests in AAA-rated CPSE Bonds and State Development Loans.

With robust risk management processes and corporate governance policiesalready in place we ensured consistent fund performance across investment categoriesdespite disruptions. Building on the strong base of over 131 years of experience weleveraged technology to orchestrate true synergy between different teams and departmentsreducing dependence on individual fund management styles that have long steered the assetmanagement industry to a more process-oriented approach. These measures have enabled usto be more customer-centric and strive for greater investor profitability. With theimplementation of measures like fund casing and hiring of fund managers with distinctiveinvestment styles we have seen a positive impact on active funds' performance.

If the pandemic has taught us anything it is that India can onlyprogress when all its parts progress together. Our company echoes the same ethos focusingon small towns and providing financial inclusivity in B30 cities. By digitising keyonboarding payment and self-serve processes we succeeded in driving greater retailinvestor sector penetration across geographies. We were able to add over 11 lakh newretail folios in the last year enabling us to emerge as an industry leader in thissegment.

Furthermore we aimed to promote accessible financial literacy byorganising learning programmes through our EDGE Learning Academy. These programmesencompass both T30 and B30 locations with a dedicated app for investor education. Inaddition to these initiatives our implementation of de-risked distribution strategiesalso ensures that a large share of our AUM is contributed by a resilient base of MFDs.

In my role as CEO I'm focused on how our digitally fortified approachto deliver better risk management can further improve fund performance. I believe with ourdeep understanding of the Indian investment market strong onground presence andtechnological readiness we can help build a secure future of our investors.

Amplifying Social Impact with CSR

As an organisation we have an unwavering commitment to give back tosociety. We believe in making a positive impact on welfare and ensuring the growth ofevery life we touch - employees partners investors shareholders and the largercommunity. This past year has been a defining period to prove that we are unswerving infulfilling this cause. We took this opportunity to contribute and make an impact in theareas of healthcare environmental conservation women empowerment and creating asupportive work environment.

In 2020 we rebooted the company to strengthen the foundation of atruly digital and inclusive financial ecosystem. With paperless digital-first modes oftransaction we could conduct nearly 88% of transactions online enabling our investorsthe flexibility to build and manage their wealth at their convenience while helping usbecome an eco-friendlier organisation.

Nearly 70% of customer requests were catered to through anon-face-to-face mode enabling social distanced yet digitally empowered investment. Withmuch enthusiasm we launched our self-serve video-based e-onboarding modules to helpfirst-time investors commence their journey towards greater financial stability.

We are also grateful for the support of our 78400 distributors and 20+digital partners who have empowered us to drive greater financial inclusion throughscalable technological solutions with multilingual capabilities across formats.

I would like to express my immense gratitude to my leadership team ourBoard and our employees who not only helped us stay resilient in the face of the pandemicbut also helped shape NAM India into one of the largest asset management companies in thecountry. It is through your sheer determination and passion that we have come this far.

We are extremely proud of our dedicated workforce 17% of whom arewomen holding key positions across the organisation. To create an enabling environmentthat supports our super women achievers we provided last trimester travel allowances tomom-to-be employees creche allowance for two years after completing post-maternityleaves a Sabbatical Policy to improve work-life balance. We also continue to enable ouremployees through skill enhancement training so they can be future-ready and alwaysdeliver on their promise of excellence.

With our employees' help and generosity we were able to contribute INR105 million to the PM CARES Fund and Maharashtra CM Relief Fund for COVID-19 relief. Alsowe contributed INR 25 million to the Army Central Welfare Fund to support our beloved armyveterans and war widows.

Striving for Shared Value through Corporate Stewardship

A company can only grow through collaboration and mutual understanding.As one of the largest asset management companies in India with various stratums ofstakeholders we consider it our duty to contribute to India's financial clout and furtherits growth.

We strive to offer better deals For our shareholders through properutilisation of our position in the financial system. This has led us to focus on arelatively new area of corporate stewardship. Under this we aim to fulfil our fiduciaryduties while simultaneously serving our unitholders' interest to the best of ourabilities.

Internal Governance

In line with our fiduciary responsibility we intend to use our votingrights to enhance value creation for the unit holders and the investee companies. Ibelieve in the value of cocreation between unitholders and investees and what better wayto achieve it than through continuous dialogue with our investee companies.

Your company has utilised Alternative Investment Funds to invest indifferent sectors and as of March 2021 has raised commitments of over INR 3700 croreacross different funds. Our fundraising initiative is underway for domestic investors aswell as offshore institutional investors.

External Governance

Our stewardship committee strives to avoid conflicts of interest wherepossible. In case conflicts arise we attempt to identify disclose and carefully managethem. This policy is followed to respond to any breaches. Through our recently launchedAIF scheme - Nippon India Equity Opportunities your company aims to fund start-ups alongwith its investment in various financial sectors of India. Through our investment andcorporate stewardship policies we hope to provide support to all sections of the Indianeconomy - from large scale operations to start ups and small businesses.

As I expressed in my Letter to Shareholders' last year we are investedin technology and deriving benefits through process and tech-driven investments. And wewill continue to orchestrate a tomorrow with digital leadership that will be mutuallybeneficial to us and our investors and partners and set a standard that will prove to beinstrumental in the growth and progress of our country.

Lastly I am grateful for the never-ending trust and confidence thatyou our valued stakeholders have always put into us. These are unpredictable times butwe believe our strong corporate governance Board oversight and continued momentum in ESGwill prepare us for the future and help us tap the tremendous opportunities that abound.

Thank you for the faith in us and I wish you and your families remainsafe and in good health.

Sincerely
(Sundeep Sikka)

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