Company Limited Presentation January 2020 1 Background and - PowerPoint PPT Presentation

HDFC Asset Management Company Limited Presentation – January 2020 1

Background and Opportunity 2

India – the third largest in household savings globally 4,840 billion 2,000 39.00 Annual Net Household Savings in USD bn (Bar out of scale) 36.1 Savings Household Savings Rate (%) 34.00 1,500 1,413 29.00 HOUSEHOLD SAVINGS (USD BILLION) 24.00 HOUSEHOLD SAVINGS RATE 1,000 19.00 17.2 467 15.5 15.1 500 395 14.00 235 189 137 10.2 124 116 9.9 87 78 9.00 50 48 30 8.5 29 25 8.5 1 7.6 7.2 - 6.9 6.6 -12 -26 4.00 3.5 2.8 2.3 1.7 0.3 -0.8 -500 -0.9 (1.00) 3 Source: OECD, FRED, RBI, IMF

Indian Household Savings pattern High Savings Culture… ..Shift to Financial Assets.. Growing Household Savings (INR Tn) (1) % of Gross Household Savings (1) 100% 80% 47% 49% 50% 18.1 55% 55% 59% 60% 60% 13.2 14.5 15.6 14.5 15.0 14.2 40% 53% 51% 18.7 50% 45% 45% 41% 15.0 14.4 20% 40% 12.6 11.9 10.6 9.3 0% -2.9 -3.3 -3.6 -3.8 -3.9 -4.7 FY12 FY13 FY14 FY15 FY16 FY17 FY18 -7.4 (5) FY12 FY13 FY14 FY15 FY16 FY17 FY 18 Gross Financial Savings Savings in Physical Assets Financial Liabilities Gross financial savings Savings in physical assets (inc Gold/Silver) …With Increasing Preference for Mutual Funds Mutual Fund AUM Reducing the Gap with Bank deposits (2) Mar-13 to Dec-19 CAGR: 20% Mutual Fund AUM: 22% (INR Tn) Bank Deposits: 11% 132.1 140.0 125.6 114.7 120.0 10% 100.0 77.8 80.0 67.2 60.0 40.0 ____________________ 26.5 21.4 23.8 (1) Source: RBI, CRISIL Research; (2) Source: AMFI, RBI, CRISIL Research. Dec-2019 Deposits as per RBI provisional 20.0 8.3 7.0 numbers - 4 FY13 FY14 FY18 FY19 Dec-19 Mutual Fund AUM Bank Deposits

Mutual Fund AUM Growth – India vs World 5 year CAGR growth in MF AUM 30.0% 26.8% 25.2% 25.0% 20.0% 15.0% 12.2% 11.0% 9.7% 8.9% 10.0% 7.0% 6.3% 5.7% 5.5% 4.7% 4.4% 3.8% 5.0% 3.7% 2.9% 2.7% 2.7% 2.0% 1.0% 0.0% -0.3% -0.5% -1.4% -5.0% -4.0% Source: IIFA (as of 31 March 2019) 5

AUM as % of GDP, Market Cap AUM as % of GDP Equity AUM as % of Market Cap 140% 137% 100% 90% 120% 80% 103% 72% 100% 70% 60% 80% 75% 50% 48% 65% 50% 59% 60% 55% World Average 55% 40% World Average 36% 32% 32% 31% 42% 36% 30% 27% 40% 29% 20% 20% 18% 20% 13% 11% 11% 9% 7% 7% 10% 6% 6% 5% 4% 0% 0% Australia USA France UK Brazil Germany S.Africa Japan Korea Chile China Italy India Mexico Australia France USA Brazil UK S. Africa Germany Japan India Chile Italy China Korea Mexico Source: IMF (GDP, CY 2018), IIFA (MF AUM, CY 2018:Q4); Bloomberg (Market-Cap CY 2018:Q4). Balanced/mixed funds are assumed to be composed of 70% equity. Only open-ended funds have been considered. 6

Global vs Indian AUM, Market Cap, GDP USD Trillion India World India Share (%) Mutual Fund Assets 0.37 50.4 0.73% Equity-oriented 0.13 25.2 0.53% Market Cap 2.08 69.4 3.00% Equity AUM as % of MCap 6.4% 36.3% GDP 2.72 84.74 3.21% AUM as % of GDP 13.5% 55.1% • India’s share of global GDP and Market Cap is in excess of 3%, however its share in Mutual Fund Assets is 0.73% • India’s equity -oriented AUM as a % of Market Cap is 6.4% as against the global average of 36.3% • India’s AUM as a % of GDP is 13.5% as against a global average of 55.1% 7 Source: Bloomberg, IMF, IIFA. As of CY 2018:Q4

The Opportunity India Population: 1,320 mm The opportunity size GDP Rs 168 Trillion 1,050mm 440mm Bank Account PAN Card Gross Household Savings Holders Holders (21.9%) Rs 36.8 Trillion as of 31 Mar 2018 as of 31 Mar 2019 Financial Savings Rs 18.7 Trillion (51%) 59 mm 20mm Income Tax Mutual Return filers Fund Investors Rs 9.5 Trillion Rs 9.2 Trillion as of 31 Dec 2019 as of 31 March 2019 Bank Deposits + Currency Balance (50%) 8 Source: RBI, IT website, AMFI

Mutual Fund Industry and HDFC AMC 9

Industry - AUM and Net Sales Quarterly Average AUM Closing AUM 40% 39% 41% 40% 35% 36% 43% 42% 43% 43% 25% 34% 26.5 2.7 26.8 Mar-14 to Dec-19 CAGR: 25.7 24.5 23.8 2.5 Overall: 22%; Equity: 34%; Debt:9%; Liquid: 28% 22.9 23.6 1.9 2.3 2.2 21.4 1.7 0.8 1.6 5.3 5.4 4.0 5.6 4.4 17.5 3.4 4.5 5.4 0.5 3.1 7.6 QAAUM ( ₹ trn) 12.3 7.8 8.3 7.3 7.9 0.2 0.2 8.0 7.0 7.3 10.8 AUM ( ₹ trn) 2.0 8.3 7.6 1.6 0.2 1.3 5.8 5.3 10.9 10.4 10.2 10.6 9.7 10.0 4.7 9.2 9.4 6.3 4.3 3.7 2.1 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Dec-18 to Dec-19 YoY: Dec-18 to Dec-19 YoY: Equity as a % of Total Equity as a % of Total Overall: 16%; Equity: 13% Overall: 13%; Equity: 13% Equity Debt Liquid Others Yearly net sales Quarterly net sales 2,608 Net Sales ( ₹ bn) 1,173 958 1,187 1,070 938 332 447 809 465 159 761 715 425 380 303 284 283 389 238 395 393 178 241 128 229 227 171 46 98 74 17 (1) (24) (29) (113) (119) (88) (478) (1,244) Q3FY19 Q2FY20 Q3FY20 FY14 FY15 FY16 FY17 FY18 FY19 FY20TD ____________________ 10 Source: AMFI AUM excluding FOF – domestic; equity includes equity- oriented hybrid funds; ‘Other’ includes Gold ETFs, other ETFs and FOF – investing overseas. From April 2018, Arbitrage is included in 'Other' category, except for computation of CAGR of equity-oriented AUM.

Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors (1)(2)(3) SIP Flows (1) MAAUM of B-15/B-30 (1)(2) 13.5 21.1 25.4 26.2 28.4 29.8 10.1 16% 16% 16% 17% 19% 15% 15% 16% 16% 39.2 41.4 47.2 54.8 70.9 79.8 82.1 85.2 86.6 (MAAUM in ₹ tn) B15 B30 85 (SIP contribution in ₹ bn) 83 23.0 81 80 (MAAUM ₹ trn) 20.8 21.6 20.5 71 18.4 12.7 11.0 11.8 15.5 (46%) (47%) 11.2 (45%) (46%) 11.0 (49%) 43 11.4 10.1 10.2 (54%) 31 7.6 7.4 6.5 (55%) (54%) 14.5 13.5 5.0 13.8 4.3 12.9 4.3 4.0 (56%) 11.7 (55%) (54%) 3.8 (53%) 3.1 (54%) 3.6 (51%) 8.5 2.2 1.9 (46%) 6.2 5.6 1.4 3.9 (45%) (46%) (44%) Mar-14Mar-15Mar-16Mar-17Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Mar-14Mar-15Mar-16Mar-17Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Apr-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 T-30 B-30 Individual Investors Institutional Investors No. of SIP Accounts (mm) T-15/T-30 B-15/B-30 Share of B-15 MAAUM Individual Folios (mm) Share of B-30MAAUM ____________________ (1) Source: AMFI, (2) Based on monthly average AUM (3) Percentages in brackets denote % share of total 11

HDFC AMC at a glance Quarterly Average AUM Closing AUM ₹ 2,144 bn ₹ 1,978 bn Assets Under Assets Under Equity-Oriented Equity-Oriented US$ 30.0 bn US$ 27.7 bn Management (1) Management (1) 56% 54% 44% 46% ₹ 3,825 bn ₹ 3,689 bn Non-Equity Non-Equity US$ 53.6 bn ₹ 1,681 bn Oriented ₹ 1,711 bn US$ 51.7 bn Oriented US$ 23.6 bn US$ 24.0 bn 9.4 mm ₹ 116 bn Live Accounts (1) PMS & SMA AUM (1) (3) 220 Branches (1)(2) ; 1,221 E mployees (1) 70k+ Empaneled ₹ 2,274 bn Distribution Partners Individual MAAUM (1) ____________________ (1) As of Dec 31, 2019 / for Dec 2019 ; (2) Includes one representative office in Dubai; (3) Includes advisory mandates 12 (2) Source: Internal. USD/INR conversion rate: ₹ 71.3800

Total AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 12% YoY 14% 3,689 3,662 3,439 3,291 3,825 3,766 2,920 3,350 2,306 1,656 1,506 1,089 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Market Share – Closing AUM Market Share – Quarterly Average AUM Dec-2018 Sep-2019 Dec-2019 Dec-2018 Sep-2019 Dec-2019 HDFC MF, HDFC MF, HDFC MF, HDFC MF, HDFC MF, HDFC MF, 14.4% 14.9% 13.9% 14.2% 14.7% 14.3% Source: Internal, AMFI 13

Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 10% YoY 12% 1,694 1,643 1,637 1,666 1,610 1,535 1,449 1,482 957 675 629 406 Dec-18 Sep-19 Dec-19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Market Share - Closing AUM Market Share – Quarterly Average AUM Dec-2018 Sep-2019 Dec-2019 Dec-2018 Sep-2019 Dec-2019 HDFC MF, HDFC MF, HDFC MF, HDFC MF, HDFC MF, HDFC MF, 15.6% 15.9% 16.1% 15.8% 16.0% 15.8% 14 Source: Internal, AMFI

AUM by Segment – HDFC AMC and Industry Quarterly Average AUM Closing AUM HDFC MF HDFC MF Industry Industry Dec-2019 Others Dec-2019 Dec-2019 Others Dec-2019 Others Others 1.8% 2.1% 9.3% 10.2% Liquid Liquid Equity Equity 21.5% 25.9% Liquid Liquid Equity 41.1% Equity 39.6% 17.2% 20.3% 44.0% 46.4% Debt Debt Debt Debt 28.3% 31.5% 30.1% 30.8% Sep-2019 Others Sep-2019 Others Sep-2019 Sep-2019 Others Others 1.4% 1.8% 9.4% 8.5% Liquid Liquid Liquid Equity 24.3% Liquid 27.4% Equity Equity 16.4% Equity 39.1% 21.7% 42.5% 43.1% 45.1% Debt Debt Debt Debt 31.7% 28.1% 28.9% 30.7% Dec-2018 Others Dec-2018 Others Dec-2018 Others Dec-2018 Others 1.2% 6.6% 1.3% 7.5% Liquid Liquid Liquid 22.7% Liquid Equity 25.6% Equity 22.7% Equity 19.5% 42.3% 39.6% Equity 44.5% 46.9% Debt Debt Debt Debt 29.1% 28.7% 30.7% 31.0% ____________________ 15 Source: Internal, AMFI