HDFC Asset Management Company Limited Q3 FY19-20 1 Industry - AUM - PowerPoint PPT Presentation

HDFC Asset Management Company Limited Q3 FY19-20 1

Industry - AUM and Net Sales Closing AUM Quarterly Average AUM (QAAUM) 40% 40% 42% 41% 39% 43% 26.8 26.5 25.7 24.5 2.5 23.6 2.7 22.9 2.2 2.3 1.6 5.4 1.7 4.6 5.6 4.0 5.4 4.5 QAAUM ( ₹ trn) 8.4 8.3 AUM ( ₹ trn) 7.8 7.9 7.0 7.3 10.9 10.6 10.4 10.0 9.7 9.4 Dec-18 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: 13%; Equity: 13% Overall: 16%; Equity: 13% Equity Debt Liquid Others Yearly net sales Quarterly net sales 1,187 761 715 447 465 425 Net Sales ( ₹ bn) 303 284 283 332 393 380 389 238 178 46 (24) (119) (478) Q3FY19 Q2FY20 Q3FY20 (1,244) FY19 FY20TD ____________________ 2 Source: AMFI AUM excluding FOF – domestic; equity includes equity-oriented hybrid funds; ‘Other’ includes Gold ETFs, other ETFs and FOF – investing overseas. From Apr 2018, Arbitrage is included in 'Other' category. Money market is classified as Debt

Individual / Institutional MAAUM, SIP Flows, B30 MAAUM by Investor category (1)(2)(3) SIP Flows (1) MAAUM of B-30 (1)(2) 79.8 86.6 13.5 21.1 25.4 26.2 28.4 29.8 16% 85.2 10.1 15% 16% 85 (MAAUM in ₹ tn) (SIP contribution in ₹ bn) 83 81 23.0 80 (MAAUM ₹ trn) 21.6 20.5 71 12.7 11.8 (47%) 11.2 (46%) (46%) 43 31 14.5 12.9 13.8 4.3 4.0 (53%) (54%) (54%) 3.6 Dec-18 Sep-19 Dec-19 Apr-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 T-30 B-30 Individual Investors Institutional Investors No. of SIP Accounts (mm) Share of B-30 MAAUM Individual Folios (mm) ____________________ (1) Source: AMFI, (2) Based on monthly average AUM (3) Percentages in brackets denote % share of total 3

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 4 (2) Source: Internal. USD/INR conversion rate: ₹ 71.3800

Total AUM and Market Share Closing AUM Quarterly Average AUM ₹ billion ₹ billion YoY 12% YoY 14% 3,662 3,689 3,825 3,766 3,291 3,350 Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Market Share - Quarterly Average AUM Market Share – Closing 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, 14.2% 14.7% 14.3% 14.4% 14.9% 13.9% Source: Internal, AMFI 5

Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 12% YoY 10% 1,694 1,666 1,637 1,610 1,535 1,482 Dec-18 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, 15.9% 16.1% 15.8% 16.0% 15.8% 15.6% Source: AMFI, Internal 6 Actively managed equity-oriented AUM excludes index and arbitrage funds from equity-oriented funds

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 Equity 27.4% 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% ____________________ 7 Source: Internal, AMFI ; From April 2018, Arbitrage is included in other category

Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 12% YoY 6% 2,180 2,274 2,033 61.8% 9.39 9.36 59.5% 8.86 57.4% 53.4% Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Industry (2) Dec-19 Individual MAAUM (Rs bn) (1) Individual customer prefer equity-oriented schemes and stay invested for longer periods Source: Internal, AMFI 8

Most Preferred Choice of Individual Investors Individual Assets Market Share (Dec-19) Individual Assets Market Share (Sep-19) Individual Assets Market Share (Dec-18) 15.6% 15.5% 15.4% 13.9% 13.6% 13.6% 10.7% 10.4% 8.7% 9.5% 9.4% 9.3% 8.5% 7.8% 7.6% HDFC ICICI Pru ABSL SBI Nippon HDFC ICICI Pru SBI ABSL MF Nippon HDFC ICICI Pru SBI ABSL Nippon MF MF MF MF MF MF MF MF MF MF MF MF MF MF Source: AMFI , based on monthly average AUM 9

Unique Investors Unique Investors- HDFC AMC vs MF Industry 27.8% 27.3% 27.3% 25.0 (Unique Investors in million) 20.3 20.0 19.1 20.0 15.0 10.0 5.5 5.5 5.2 5.0 0.0 Dec’18 Sep'19 Dec'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identified by PANs/PEKRNs of all unit holders & Guardians 10

Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Long Tenure SIP Book (1) Strong Growth in Systematic Transactions ( ₹ bn) 3.42 12.8 80.3% 12.2 11.8 11.7 68.1% 11.5 6.8 Over 5 Years Over 10 Years 4.9 4.7 1.23 3.1 Strong and growing “Order Book” to provide predictable flows Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 Sep-19 Dec-19 #mm systematic transactions ____________________ Source: Internal (1) Based on tenure at the time of registration of all live SIPs during Dec-19 11

Multi-channel Distribution Network Well Diversified Distribution Channel Equity-oriented AUM (Dec-19) Total AUM (Dec-19) HDFC Bank 6.4% HDFC Bank 9.9% Banks, 12.2% Direct Banks, 15.9% 18.6% Direct 41.7% IFAs 26.3% National Distributors IFAs 24.8% 40.6% National Distributors 19.8% HDFC Bank 10.9% Dec-2018 Sep-2019 HDFC Bank 10.0% Dec-2018 Sep-2019 HDFC Bank 7.8% HDFC Bank 7.2% Direct, Direct, 20.0% 17.7% Banks, 16.1% Banks, 13.9% Banks, 17.2% Banks, 13.0% Direct Direct, 42.5% 39.7% IFAs, 28.5% IFAs 27.3% National National Distributors, Distributors, 22.0% 22.8% IFAs, 43.1% IFAs, 41.1% National Distributors National Distributors, 17.3% 18.0% Source: Internal 12

Geographic Spread Total MAAUM by T30 and B30 cities (1) #2 Player in B-30 Markets (1) B 30, SBI MF, 12.9% 19.5% Others, 38.0% HDFC MF, 12.6% ICICI Pru MF , 11.3% Nippon UTI MF, 9.6% T 30, MF, 9.1% 87.1% Network of 220 branches with 144 in B-30 cities (2) c. 70k+ empaneled distribution partners ____________________ (1) Source: Internal (2) As of Dec 31, 2019. Includes one representative office in Dubai; 13

Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 30.9% 32.8% 33.6% 69.9% Digitization Across Functions 69.1% 67.2% 66.4% 30.1% FY15 FY19 9MFY19 9MFY20 Electronic Physical Strong online presence - dedicated separate digital platforms distribution partners and customers FY15-19 CAGR of 42% for electronic transactions 17.2% transaction during FY19 were through HDFC MF Online and mobile application Source: Internal 14

Financials

Financials Summary – Nine Months Earnings (₹ mm) Particulars 9ME FY20 9ME FY19 Change Income Revenue from Operations 15,271 14,287 7% Other Income 1,667 1,204 38% Total Income 16,938 15,491 9% Expenses Finance Costs 68 - - Fees and Commission Expenses 193 2,104 -91% Impairment on Financial Instruments - 302 - Employee Benefit Expenses 1,716 1,587 8% Depreciation and Amortization Expenses 370 94 294% Other Expenses 1,357 1,803 -25% Total Expenses 3,704 5,890 -37% Profit before tax 13,234 9,601 38% Tax Expenses 3,109 3,057 2% Profit after tax 10,125 6,544 55% Other Comprehensive Income (net of tax) (36) (7) Total Comprehensive Income 10,089 6,537 54% Particulars 9ME FY20 9ME FY19 Change Revenue from Operations 15,271 14,287 7% Total Expenses* 3,704 5,588 -34% Operating Profit from core AM business 11,567 8,699 33% *Adjusted for non recurring expenses 16