Nippon India Equity Opportunities AIF (NIEO)

Presentation Deck
December 2024

STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION

Organizational Structure

Nippon Life India Asset Management Limited (NAM India)

Legal & Risk

Compliance Management Finance Team
Leverage Of Highly Experienced Team Team
NAM India Team
IT, Marketing &
PMS Team HR Team Operations
Team
100% subsidiary

Nippon Life India AIF Management Limited

Ashish Chugani
Head Alternative Assets

Aashwin Dugal
Deputy Head Alternative Assets

Ashish Jalan & Nikhil Sanghai Business

Pradeep Khanna Rahul Veera Sachin Bid
Rahul Apte Client Servicing & Development,
Real Estate Equity VC Investments
Credit Operation Team Product & Sales

Team Team Team Team Team Team

Well Staffed and Experienced Team

2
2
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Leadership Team
Ashish Chugani
Head – Alternative Investments
Mr. Ashish Chugani did his MBA from Duke University, USA and completed his M.Com from University of Mumbai. He
has over 30 years of experience across multiple facets of alternative investments including private equity
investments and exits, venture capital, real estate, bank turnarounds and portfolio management. Along with this, he
has also managed several International Funds for over 8 years with different organizations.
In the past, Ashish has held leadership roles in several investment management firms such as Centrum
Alternatives, Tata Capital & Cambridge Place IM which gave him rich experience in driving multi – strategy
alternative asset management businesses.

Aashwin Dugal
Deputy Head - Alternative Investments
Aashwin is a Banking, Asset Management and Alternate Investment professional with a career spanning over 25
years. He has worked in areas such as Wealth Management, Private Banking, Alternate Investment Funds and
Mutual Funds.He has worked with ING Barings, Kotak Mahindra Bank Ltd, Tata AMC Ltd and currently employed with
Nippon Life India AIF as Deputy Head. He heads the Products, Operations and Business functions in his current
capacity and has worked with Nippon Life AMC for 18 years (Co-Chief Business Officer till September 2023).Aashwin
is Post Graduate in Business Management from Institute of Management & Technology.

Rahul Veera
Fund Manager – AIF Equity
Rahul has 14+ years of experience in Equity Research and Fund Management during which he has extensively
covered sectors like consumer goods, pharmaceuticals, chemicals, and building materials. He has a proven track
record of identifying profitable themes and stocks, yielding substantial returns.
He holds a Bachelor of Commerce degree from H.R College (Mumbai University), an MBA from Swansea University
(UK), and an Executive Finance certification from the Indian Institute of Management (Calcutta), and has previously
worked with renowned organizations including Abakkus Asset Managers, Morgan Stanley, Edelweiss, and Elara
Capital.

Prashant Kutty
Fund Manager – AIF Equity
Prashant comes with 19 years of experience in Equity Research and Fund Management during which he has actively
covered sectors like FMCG, Consumer durables, Building materials, Retail, Media & Auto. He has a special affinity for
Mid & Small caps. In his previous stint at Sundaram Alternates, he used to manage the Mid-cap fund and a Small-
cap fund, which have generated healthy alpha across time periods.
He is an MBA – Finance from Bharti Vidyapeeth, Mumbai University and he was among the top 16 rated Consumer
analysts by Asia Money in 2015. He has worked with several premier institutions like Sundaram Mutual Fund, Emkay
Global financial services, Standard Chartered Securities, HDFC Securities and IDBI Bank in his previous stints

STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION

Our Investment Philosophy: “Must Five” Quality Framework

Business Earnings Corporate Environment Capital

Potential Track Record Governance & Social Factors Allocation

• Growth Opportunity • Consistent • Treatment of Environmental Factors: • Unrelated

(Scale) Performance across Minority • Water Management Diversification
Business Cycle Shareholders • Emission and Affluent
• Sustainable Policy • Leverage
Competitive • Revenues, EBITDA, • Promoters Track
Advantage Profit Growth Record Social Factors : • Equity Dilution
• Employee Benefits
• Margin Profile • Accounting red • Health & Safety
flags • Diversity & Inclusion
• Return of Equity
(ROE) • Share Pledge

• Return on Assets
(ROA)

UNCOMPROMISING FOCUS ON QUALITY

4
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Backed by a Strong Investment Team

In-House Active and Leveraging Third

Investment Team
Research Ongoing Tracking Party (Sell side)
Strength
Capabilities of companies Research

• A Team of 8 seasoned • Deep In-House • Own ~100 unique • Combination of In-

Investment Coverage of ~200 stocks as of 30th House Research and
Professionals, listed stocks across September 2024 across Third Party Research
sectors and market 8 differentiated Equity results in a Robust and
• Cumulative
capitalizations Strategies (i.e. Unbiased Approach to
experience of 115+
Multicap, BFSI, Small Stock Selection
years
Cap)

As our capabilities continue to expand, we also expect to increase the size of our Investment team further

5
5
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Robust Investment Process – Multi Layered Monitoring
Investment
Team of 7 Investment Professionals
Manager

Investment Committee Risk Committee Stewardship Committee

(11 members) (4 members) (7 members)

• Diverse Team with members • Committees established with the objective of monitoring fund management
across several departments activities, ensuring risk management and smooth functioning of the fund

Sr. Committee Member Designation Sr. Committee Member Designation Sr. Committee Member Designation

1 Director 1 Executive Director & CEO, NAM India 1 Director

2 Head Alternative Assets 2 Director 2 Head -Alternative Assets

3 Deputy Head-AIF Business 3 Director 3 Deputy Head -Alternative Assets

4 Chief Risk Officer, NAM India 4 Director 4 Chief Risk Officer, NAM India
Chief Legal & Compliance Officer, Chief Legal & Compliance Officer, NAM
5 5
NAM India India
6 Head Real Estate Investment 6 Fund Manager - AIF Equity
Interim Chief Financial Officer, NAM
7 Fund Manager- Equity Investments 7
India
8 Fund Manager-Venture Capital
Strong risk management measures post investment through a
9 Chief Financial Officer, NAM India
multi-layered monitoring system
10 Co-Fund Manager and Head of Credit

11 Co-Fund Manager Credit 6

STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Nippon India Equity AIF - Unique Offerings
Indian The 5 Trillion The Champions Reimagine
The Big Switch Financial India Millennial The Next Billion Dollar of the 21st India Unlimited India
- (NIEO - 1) Services Boom - (NIEO – 3) (NIEO – 4) Opportunity Century Opportunity (NIEO – 8)
(NIEO - 2) (NIEO – 5) (NIEO – 6) (NIEO – 7)

Type Closed Ended Category III AIF

Final Closure Jan-18 Dec-18 Dec-18 Aug-19 Dec-20 Feb-22 Aug-23 Dec-23

Commitment
INR 417 Crores INR 159 Crores INR 380 Crores INR 119 Crores INR 196 Crores INR 635 Crores INR 912 Crores INR 356 Crores
Raised

India’s 5-7 year Unlimited

Shift in business Paradigm shift in Consumption shift High growth
Thematic scheme target of Dominant opportunity that
Focus of from unorganized economy unleashed by Next businesses to
with focus on becoming a Five Companies in their Indian economy
Portfolio to organized
Financial Sector
unleased by 1 billion Indians in
Trillion Dollar area of operations
benefit from India
can offer over next
sector Millennials Tier II-IV cities Growth story
economy decade

Market Cap Mid Cap Multi Cap Multi Cap Multi Cap Multi Cap Multi Cap Multi Cap Multicap

Tenure 42 months^ 60 months^ 42 months^ 48 months^ 72 months^ 72 months^ 72 months^ 54 months^

NIFTY Financial
Benchmark NIFTY Mid Cap NIFTY 500 NIFTY 500 NIFTY 500 NIFTY 500 NIFTY 500 NIFTY 500
Services

NIEO Scheme 9 “Undiscovered India Opportunity” – Fund Raising Underway

*Scheme 1 has been wound down in July 2024 and money has been returned to investors;
*Scheme 3 is in 1 year liquidation period till May 2025
^ from final closing date
7
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Our Track Record

8
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Our Track Record v/s MF Universe

Portfolio Benchmark Performance v/s

Scheme Name- Nippon India performance Performance Universe of MFs*
Inception Type of
Equity Opportunities AIF Benchmark Since Since
Date Portfolio
Series (NIEO) Inception Inception
(CAGR) (CAGR) Quartile
Rank
Ranking

The Big Switch Nifty Midcap

09-Aug-17 Midcap 13.9%^ 12.0%^ 2 11/22
(NIEO - 1) 100
NIFTY
Indian Financial Services Boom
Financial 31-Jan-18 Sectoral 11.1% 11.8% 3 7/12
(NIEO - 2)
Services
India Millennial
NIFTY 500 31-Jan-18 Multicap 17.7%^ 13.0%^ 1 4/21
(NIEO - 3)

The Next Billion

NIFTY 500 12-Jul-18 Multicap 17.2% 14.9% 1 6/22
(NIEO - 4)

The 5 Trillion Dollar Opportunity

NIFTY 500 01-Jan-20 Multicap 24.2% 18.5% 1 4/24
(NIEO - 5)

The Champions of the 21st

Century NIFTY 500 03-Feb-21 Multicap 22.2% 18.0% 1 6/25
(NIEO - 6)

Reimagine India Opportunity

NIFTY 500 23-Feb-22 Multicap 24.9% 17.6% 1 6/30
(NIEO - 7)

Unlimited India
NIFTY 500 21-Jun-22 Multicap 28.5% 25.8% 2 13/30
(NIEO- 8)

Data as 30th November 2024

*All comparison with Mutual fund schemes done since the inception date of the respective fund. Source- ICRA Online.
^ Performance is till the end of extension period, i.e. until the beginning of liquidation period (i.e. for NIEO1 till 30th June 2023 and for NIEO3 till 30th May 2024)
9
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Winning Ideas
Date of First Gains from the date of first
Security Date of Exit
Purchase purchase
Central Depository Services India Ltd 14-Aug-17 - 9.8x

Eclerx Services Limited 20-Jul-20 - 8.5x

Affle India Limited 29-Jul-19 03-Jan-23 7.2x

Prestige Estates Projects Ltd 23-Nov-20 - 6.0x

Power Finance Corporation Limited 25-Aug-20 - 5.7x

DLF Limited 21-Aug-20 - 5.1x

Hindustan Aeronautics Limited 13-Apr-22 - 5.1x

Cholamandalam Investment and Finance Co Ltd 02-Feb-18 - 5.0x

The Indian Hotels Company Limited 14-Feb-19 - 4.9x

Triveni Turbine Limited 29-Jun-22 - 4.4x

Polycab India Ltd* 05-Feb-21 19-Oct-23 4.1x

Navin Fluorine International Limited* 03-Jan-20 11-Apr-22 4.1x

Info Edge India Ltd* 14-Aug-17 09-Nov-22 4.0x

ICICI Bank Ltd 02-Feb-18 - 3.9x

Timken India Limited 03-Jan-20 - 3.7x

The Phoenix Mills Ltd 18-Feb-21 - 3.7x

Bharti Airtel Ltd 24-Dec-19 - 3.5x

Bharat Heavy Electricals Limited 18-Oct-22 - 3.5x

Easy Trip Planners Limited* 25-Mar-21 03-Feb-22 3.4x

Mahindra Lifespace Developers Limited* 05-Feb-21 14-Oct-24 3.3x

Note: Purchase prices have been considered as per first purchase of the respective stock across all Cat-III Long Only Portfolios
Data as on 31st October 2024; * Exited Stocks
10
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Macroeconomic Update

11
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Broad Macroeconomic Backdrop - India
India is one of the few Bright Spots in a Mixed Macroeconomic Landscape

• India’s GDP is expected to grow at a rate of 6.5-7% p.a. by FY26 as per consensus expectations.

• Corporate earnings in India is expected to remain strong for most sectors over the medium
term, and the current blip witnessed until Q2FY25 is expected to turn around over the next few
quarters.

• High frequency indicators too, are in a favourable position: (strong GST Collections,
expansionary Services and Manufacturing PMI, manageable Current Account Deficit, stable
Power Demand, growing Exports and double-digit Credit Growth)

• Economic growth in the coming years will likely be driven by:

• Effective implementation of PLI schemes

• Large capital expenditure supported by strong bank credit growth

• Development of renewable energy sources while diversifying import dependence on crude

oil

• Export growth as a result of shifting of global supply chains

12
Source: Internal research STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
In the Midst of the Capex Cycle
The Once Dormant Capital Expenditure Cycle is Showing Consistent Signs of Revival

• The synergy of private and government capital expenditure growth has propelled India into a strong capital
expenditure cycle
• Capacity utilization, a leading indicator of high capital expenditure is favourable and was at ~76% in Q2FY25
• On a systemic level, capital expenditure has reached an all time high in FY23 for the top 118 firms (Top 150 minus
financials)
• Capex for these 118 firms crossed $80 billion in FY23
• The second highest all time capital expenditure levels were witnessed in the previous year (FY22) at $72
billion
• Free Cash flows are also increasing, averaging ~$40 billion over the last three years (which is almost four times
the past 5 years average)
• The confluence of high-capacity utilization, high free cash flows, and supportive domestic policy environment
are positive signs for the capital expenditure cycle in India
13
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Banking and Interest Rate Cycle

India’s Robust Banking System will have booster effects toward the economy

A few contributors to this thesis:

• After nearly half a decade of a clean up, the banking system is extremely well
positioned in terms of liquidity and balance sheet relative to the past

• Credit Growth in India is strong and has achieved a new normal of double digits,
the Q2FY25 figure coming in at ~14.4% (YoY)

• NPA levels have fallen from highs of ~11.2% in 2018 to nearly a 14-year low of 2.5% in
September 2024.

• Return on Assets (RoA) and Capital Adequacy levels are at multi-decadal highs,
at ~1.4% (Sep-24) and ~16.8% (Mar-24) respectively

• Interest rates in India seem to have peaked, and as rates ease, borrowing should
increase which will give the credit cycle an incremental boost

• All this put together, places the Indian Banking and Financial Services Sector in a
highly favourable position relative to a world that is tasked with crippling debt levels,
high inflation, and weak economic growth

14
Source: Internal research STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
India’s Changing Role in the World Order
India’s Growing Significance in the Global Ecosystem
• India’s Supply Chain Position is growing in its prominence as the China plus One strategy continues to
unfold
• The Production Linked Incentive (PLI) Scheme in India has helped put us on the map for Manufacturing
as large international players are setting up manufacturing in India
• Electronics Manufacturing in India has jumped significantly with a CAGR of ~19% from FY15 to FY22, and
India is expected to be a significant player in this space over the next few years
• As western countries work towards reducing imports dependance on Soviet nations for Defense
Products, India’s Defense exports have gone up ~10 times to ~$160 billion since FY17
• As India’s significance has increased in the global landscape, it has taken aggressive stance on foreign
policy, executing as well as renegotiating existing several Free Trade Agreements with strategic partner

Tailwind for India

Global PMI Orders to Inventory Ratio is
improving, which bodes well for Asia’s
export outlook

15
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
India’s Next Growth Upcycle

India’s Growth Drivers Continue to Remain Strong

A few contributors to this thesis:

• Over the last few years, the Indian Government has shifted its focus from Revenue
expenditure to Capital Expenditure

• Supportive government policies have given much needed support to several sectors,
with potential for multiplier growth over the next few years

• India is expected to benefit from the Capital Expenditure Upcycle and its Manufacturing
prowess

• Few drivers of the next leg of growth in India to be led by Cap-Ex heavy sectors like
Capital Goods, Chemicals, Services, Healthcare, Real Estate
• These sectors are underrepresented in the Nifty 50 and cumulatively form only ~5%,
while in the Nifty Smallcap 250 Index, they comprise ~46%

Moving forward, Nifty Smallcap 100 is expected to deliver EPS growth of 22%/20% YoY in
FY25/FY26 vs. Nifty 50’s expectations of 11%/15% YoY in the same periods

16
Source: Internal research STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (1/6): Potential for Outsized Returns

ultiplied in last 10 years No of companies vg 10 rs C GR

>40x 35 48.5%

25x to
to 40x 38 40.7%

15x to
to 25x 67 34.2%

10x to 15x 63 31.3%

5x to
to 10x 110 21.5%

Out of current small cap companies with listing history of 10+ years (~480 companies with AMFI ranking
from 251 to 1,100 as on 31st December 2023), over 64% have grown more than 5x over the last 10 years,
displaying exponential growth

Superior Stock Selection coupled with Meaningful Allocation creates the perfect recipe for generating
outsized returns over the long term

Moving forward, with declining leverage and rising ROE, Nifty smallcap 100 is expected to deliver EPS growth of
22%/ YoY in FY /FY vs Nifty ’s e pectations of 12%/15% YoY in the same periods

^Ratio calculated based on AMFI Market Capitalization Classification for stocks that have been listed for 10 years as on 31st December 2023.
Disclaimer : The above table is only for illustration purpose and should not be construed or related to performance of any investment strategy of Nippon India AIF
Management Ltd. Past performance does not guarantee future returns.
Returns are as on 29th February 2024. Source : NSE, MFI Explorer, Bloomberg, NAM India internal research 17
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (2/6): Changing Flavour of the Market
Nifty 50: A Stark Rejig over the last 15 Years
Nifty 50 Nifty 50
Sector Name Difference
(Sep-2009) (Sep-2024)

Industrials 11.3% 4.6% -6.7%

Energy 16.5% 11.3% -5.2%

Telecommunication 6.3% 4.0% -2.3%

Commodities 10.0% 5.7% -4.3%

Utilities 5.0% 3.2% -1.8%

Services 0.0% 0.9% 0.9%

Fast Moving Consumer Goods 6.2% 8.6% 2.4%

Healthcare 2.1% 3.9% 1.8%

Information Technology 11.9% 12.8% 0.9%

Consumer Discretionary 7.1% 12.2% 5.1%

Financial Services 23.3% 32.9% 9.7%

• Over the last 15 years, 3 sectors/themes have contributed significantly (~37% growth) to the Nifty 50, i.e. Financial
Services, Consumption and IT
• Amongst the key losers are capital expenditure related sectors like Industrials, Energy, Telecommunication,
Commodities (~25% in September 2024 vs. 44% in September 2009)
• Realty has no representation in the Nifty 50 Index

18
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (3/6) : Changing Flavour of the Market
Nifty 50: Last 3 Years are Showing Signs of Turn in Cycle
Nifty 50 Nifty 50
Sector Name Difference
(Sep-2021) (Sep-2024)

Consumer Discretionary 7.8% 12.2% 4.4%

Telecommunication 2.0% 4.0% 1.9%

Industrials 2.7% 4.6% 1.9%

Utilities 1.7% 3.2% 1.5%

Fast Moving Consumer Goods 8.0% 8.6% 0.5%

Healthcare 3.4% 3.9% 0.5%

Services 0.7% 0.9% 0.2%

Commodities 6.1% 5.7% -0.4%

Energy 12.8% 11.3% -1.6%

Financial Services 37.3% 32.9% -4.4%

Information Technology 17.5% 12.8% -4.7%

• The Last 3 years are seeing a minor change in composition of Nifty 50 with capital expenditure related sectors like
Industrials, Energy, Telecommunication growing by ~22%
• As the Indian economy shifts towards a potential manufacturing upcycle, capital expenditure related sectors are
likely to grow larger and larger

19
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (4/6) : The Next Upcycle
India’s Growth Drivers in the Ne t Upcycle
Nifty Small Cap % Overweight in
Scheme Name Nifty 50 Index
250 Index Small Cap
Capital Goods 15.6% 0.0% 15.6%
Chemicals 5.9% 0.0% 5.9%
Healthcare 9.6% 4.1% 5.4%
Consumer Services 3.4% 0.0% 3.4%
Consumer Durables 5.8% 2.6% 3.2%
Realty 2.5% 0.0% 2.5%
Services 3.4% 1.0% 2.3%
Textiles 1.5% 0.0% 1.5%
Media, Entertainment & Publication 1.1% 0.0% 1.1%
Construction 4.8% 3.9% 0.9%
Forest Materials 0.9% 0.0% 0.9%
Diversified 0.3% 0.0% 0.3%
Construction Materials 1.1% 2.2% -1.1%
Metals & Mining 2.6% 3.9% -1.3%
Telecommunication 2.3% 3.6% -1.4%
Power 1.0% 3.1% -2.1%
Automobile and Auto Components 5.4% 8.0% -2.6%
Fast Moving Consumer Goods 4.1% 7.9% -3.8%
Information Technology 4.9% 12.5% -7.6%
Oil, Gas & Consumable Fuels 2.6% 12.5% -9.9%
Financial Services 21.4% 34.3% -12.9%

• Some high growth sectors have miniscule representation (if any) in the Nifty 50 Index
• Capital Goods, Chemicals, Services, Healthcare, Real Estate and Consumer Services cumulatively form ~5% in the
Nifty 50 but are ~46% of the Nifty Smallcap 250 Index
• Since these sectors are under-represented in the Nifty 50, by participating in these theme we are naturally
investing in smaller companies

20
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (5/6): Reducing Volatility

Nifty Smallcap 100 Record

30 (No. of consecutive months without a monthly 5% decline) 28

25
22

20

14
15 12

10

Jun-22
Oct-13

Oct-14

Oct-15

Oct-16
Feb-15

Feb-16

Oct-17

Oct-18

Feb-21

Feb-22

Feb-23

Feb-24
Feb-14

Feb-17

Feb-18

Oct-19
Feb-19

Feb-20
Jun-14

Jun-15

Jun-18

Jun-21
Jun-16

Jun-17

Jun-19

Jun-20

Jun-23

Jun-24
Oct-21

Oct-22
Oct-20

Oct-23

Oct-24
- Today, the Nifty Smallcap 100 Index has achieved a record number of consecutive months without
a 5% decline

- Backed by strong fundamentals, domestic inflows (both retail and institutional) continue to remain
strong

- India is a structural growth story and is well positioned to benefit from a confluence of factors like
strong corporate earnings growth, supportive policy framework, increasing aspirational
consumption, and transformation into a global manufacturing hub

21
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why Smallcap? (6/6): Lucrative Long-Term Returns

Nifty Smallcap 100

25,000
18,602
(31-Oct-24)
20,000

15,000
9,580
(15-Jan-18)
10,000 3,340
(24-Mar-20)

5,000

0
Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Oct-21 Oct-22 Oct-23 Oct-24

- Over the last 10 years, the Nifty Smallcap 100 index has delivered a CAGR of 13.7% p.a. (vs. 11.3% in Nifty 50)
- This amounts to a higher return of ~70% in absolute terms vs. the Nifty 50

Start Date End Date Time Period CAGR

31-Oct-19 31-Oct-24 5 years 26.5%

31-Oct-17 31-Oct-24 7 years 12%

31-Oct-14 31-Oct-24 10 years 14%

22
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
 Our New Offering:
Nippon India Equity Opportunities AIF

Undiscovered India Opportunity

23
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Our Investment Universe: Small Cap

Total number of eligible companies: ~1,100*

Earnings Corporate Environment Capital

Track Record Governance & Social Factors Allocation

• Treatment of 400+
Environmental Factors:
Minority • Water Management 5y avg ROE > 15%
370+•
Shareholders

Promoters Track
• Emission and Affluent
Policy

5y avg ROCE > 15% Record Social Factors :

• Employee Benefits
• Accounting red • Health & Safety
flags • Diversity & Inclusion

• Share Pledge

200+ Strong Corporate Governance

NIEO9 Investment Universe

(Small Cap companies) 24
*Small cap companies with market cap ₹,
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Portfolio Theme Focus: “Undiscovered India Opportunity”

25
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Investment Strategy: “Undiscovered India Opportunity”

Brief Overview

Predominantly investing in Small

Predominantly investing in Cap* companies.
Small cap* Allocation will vary from 51-100% (Typically
companies
around 70%-90%)
Portfolio will be
be diversified
diversified across
acrosssectors
sectors
Focused
Focused portfolio
portfolio of
of ~ 20-30 stocks
stocks(Listed
isted + Pre-IPO)^
Pre IPO
Portfolio may have some exposure
e posure to Pre-IPO
Pre IPO stage stocks (upto
upto 15% of Commitment
commitment Amount)
Amount on
on an
opportunistic basis
Fund
Fund Size
Si e capped at IN
INR 750 Cr
Cr (plus Green Shoe
plus Green Shoe option of IN
INR 250 Cr
Cr)

* Small Cap investible universe for the portfolio will be companies with AMFI market capitalization Rank of 251 and below, going down to companies with market
* As per AMFI classification, companies with rank 251 and below
capitalization of at least ~INR 1,000 Crore at the time of investment
Tentative, range may vary at investment manager’s discretion based on market conditions and opportunities available

Investment arameters

igh capital
High Capitalefficiency
Efficiencywith
withmassive
massiveheadroom
headroomto
togrow
grow

visibilityof
Strong visibility ofearnings
earningsgrowth
growthover
overne
next
t 3-5years
years

Run dynamic and

un by dynamic andethical
ethicalentrepreneurs
entrepreneurs

Negligible Debt ow D/ ratio

26
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Why this Scheme?

Parameters Undiscovered India Opportunity Small Cap Mutual Fund

The fund must invest at least 51% of the The fund must invest at least 65% of the
Flexibility
portfolio in small cap stocks* portfolio in small cap stocks*

Commitment capped at INR 750 Cr (plus Popular Small Cap funds have AUM size >
Fund Size greenshoe option of INR 250 Cr) INR 10,000 Cr and some have stopped
accepting lumpsum investments

Portfolio of ~ 20-30 stocks. Meaningful

Focused allocation to high conviction ideas ~102 Stocks^

UpUptoto15% of Commitment
15% of CommitmentAmount
Amount
on on
Pre - IPO opportunistic basis No allocation to Pre-IPO
opportunistic basis

Investible Universe is large as meaningful Investible Universe is relatively smaller as

allocation can be taken in smaller large AUM restricts the fund from investing
Investible Universe companies (For 1% allocation to an INR in smaller companies (For 1% allocation to
750 Cr Fund, investment of INR 7.5 Cr portfolio in INR 10,000 Cr fund, investment
required) of INR 100 Cr required)

* Small Cap investible universe for the portfolio will be companies with AMFI market capitalization Rank of 251 and below, going down to companies with market
capitalization of at least ~INR 1,000 Crore at the time of investment
^ Average # of stocks of Top 10 Small Cap Mutual Funds as on 30-Sep-24

The Scheme will offer monthly redemptions one year after payment of the final drawdown or final closure whichever is later
Various investment options will be offered to invest in a staggered manner. Please refer to Investment Options slide for further details

27
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Portfolio Details

28
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Portfolio: Top Holdings
Market Cap
Sr. No. Equity Sector
Category

1 Central Depository Services (India) Ltd. Financial Services Small Cap

2 Aarti Pharmalabs Limited Health Care Small Cap

3 Exide Industries Ltd. Renewable Energy Mid Cap

4 Affle (India) Limited Media Small Cap

5 Mastek Limited Software & Tech Services Small Cap

6 KFin Technologies Limited Financial Services Small Cap

7 Praj Industries Ltd. Industrial Services Small Cap

8 Max Estates Limited Real Estate Small Cap

9 Piramal Pharma Ltd Health Care Small Cap

10 Bayer CropScience Limited. Materials Small Cap

Portfolio as on 30th November 2024

Disclaimer: The stocks in the presentation form part of the product offering and may or may not form part of the portfolio in future. The stocks mentioned in the portfolio are not
a recommendation to buy or sell. Investors are advised to consult their independent financial advisor before making any investment decision.

29
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Portfolio Quants
Sector Allocation Market Cap Allocation
Financial Services 11%
Small Cap 55%
Health Care 9%

Software & Tech Services 8%

Mid Cap 10%
Materials 8%

Real Estate 4%
Cash & Equivalent 35%
Renewable Energy 3%

Utilities 3% 0% 10% 20% 30% 40% 50% 60%

Industrial Products 3%

Media 3%

Consumer Staple Products 3%

Industrial Services 2%

Consumer Discret. Products 2%

Retail & Whsle - Staples 2%

Banking 2%

Consumer Discret. Svcs 2%

0% 2% 4% 6% 8% 10% 12%

Portfolio as on 30th November 2024

Disclaimer: The stocks in the presentation form part of the product offering and may or may not form part of the portfolio in future. The stocks mentioned in the portfolio are not a recommendation to buy
or sell. Investors are advised to consult their independent financial advisor before making any investment decision.

30
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Overlap Study

Differentiated & Uncorrelated Portfolio

Overlap in NIEO9 Portfolio Stocks vis a vis key Small Cap Mutual funds:
Overlap with NIEO9 Portfolio
Scheme Name
(%)
Canara Robeco Small Cap Fund 12
Nippon India Small Cap Fund 10
HSBC Small Cap Fund 9
Franklin India Smaller Companies Fund 8
HDFC Small Cap Fund 5
Axis Small Cap Fund 5
Kotak Small Cap Fund 3
DSP Small Cap Fund 3
SBI Small Cap Fund 3
ICICI Prudential Smallcap Fund 1

Average 6
Data as on 30th November 2024

➢ Uncorrelated Portfolio: Average Overlap with key Small Cap Mutual Funds is ONLY ~6%
➢ Unique Portfolio: ~27% of NIEO9 Portfolio is not part of key Small Cap Mutual funds.
➢ Focused Portfolio: NIEO9 Portfolio has 31 stocks vs ~103 stocks (average) in key Small Cap Mutual Funds

Disclaimer The stocks in the presentation form part of the product offering and may or may not form part of the portfolio in future. The stocks mentioned in the portfolio are not a recommendation to buy
or sell. Investors are advised to consult their independent financial advisor before making any investment decision.

31
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Principal Terms of Investment

Parameter Description

Type of Scheme Close ended, Category III, Alternative Investment Fund

Target Capital Commitment Rs 750 Crore with a Green Shoe option of Rs 250 Crore

Minimum Commitment Amount Rs 1 Crore

Benchmark Nifty Smallcap 100

Initial Drawdown 25% of the Capital Commitment (balance in equal installments of 10 Months)

Up to 18 months from final closing & further extension of up to 6 months at the discretion of
Commitment Period
the Investment Manager

Sponsor / Investment Manager (IM) will make an aggregate commitment of 5% of the

Sponsor / IM Commitment
corpus or INR 10 Crs whichever is less.

84 months (from first closing date). Investors have an option to redeem their investments
Tenure subject to applicable redemption fees, anytime after completion of 12 months from final
closing or 12 Months after payment of final drawdown whichever is later*

Investment Manager Nippon Life India AIF Management Limited

* For more details on fees, expenses and redemption fees please refer to Private Placement Memorandum

* The right of redemption shall be available only after 12 months from payment of final drawdown, subject to minimum Lock-in Period of 12 months from Final Closing. Investors who
default on payment of drawdown will not be able to redeem their investments.
Pursuant the SEBI circular dated 10th April, 2023, Investment Manager vide an addendum to the Private Placement Memorandum has introduced direct option under Class A units, Class B
units and Class D units. For comprehensive details, please refer the fund documents including the Private Placement Memorandum and Contribution Agreement.

32
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Principal Terms of Investments (Class A Units^)

Management Fees per annum (shall accrue daily on

Commitment Amount closing Class NAV and shall be payable in arrears to the
Investment Manager on a monthly basis)*

INR 1 crore to < INR 3 crore 2.50%

INR 3 crore to < INR 10 crore 2.00%

INR 10 crore and above 1.75%

Timelines (from the final closure)* Lock-in Period / Redemption Fee*

Exit Load <=12 months Lock-in

>12 months and <=24 months 3% of NAV
>24 months and <=36 months 2% of NAV
>36 months but before the maturity date NIL

* The right of redemption shall be available only after 12 months from payment of final drawdown, subject to minimum Lock-in Period of 12 months from Final Closing.
Investors who default on payment of drawdown will not be able to redeem their investments.
^ Further, please note the above-mentioned fee structure/ class is applicable for investors approaching the fund through a distributor/ placement agent . For
Investors approaching the Fund directly or through a SEBI registered intermediary which is separately charging a fee to the Investor , such as an Investment Advisory
fee or portfolio management fee, there is separate fee structure/class which has lower management fees. For comprehensive details on various classes, fee
structure, and expenses please refer to Private Placement Memorandum and Contribution Agreement

33
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Principal Terms of Investments (Class B Units^)

Management Fees per annum

(shall accrue daily on closing Hurdle Rate
Commitment Amount Class NAV and shall be payable ( Pre- Tax Without Catch *Performance Fee
in arrears to the Investment Up)
Manager on a monthly basis)*

INR 1 crore to < INR 3 crore 1.90% 10 % 15%

INR 3 crore to < INR 10 crore 1.65% 15%

10 %

INR 10 crore and above 1.40% 10 % 12.5%

Timelines (from the final closure)* Lock-in Period / Redemption Fee*

Exit Load <=12 months Lock-in

>12 months and <=24 months 3% of NAV
>24 months and <=36 months 2% of NAV
>36 months but before the maturity date NIL

* The right of redemption shall be available only after 12 months from payment of final drawdown, subject to minimum Lock-in Period of 12 months from Final Closing.
Investors who default on payment of drawdown will not be able to redeem their investments.
^ Further, please note the above-mentioned fee structure/ class is applicable for investors approaching the fund through a distributor/ placement agent. For Investors
approaching the Fund directly or through a SEBI registered intermediary which is separately charging a fee to the Investor , such as an Investment Advisory fee or
portfolio management fee, there is separate fee structure/class which has lower management fees. For comprehensive details on various classes, fee structure, and
expenses please refer to Private Placement Memorandum and Contribution Agreement

34
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Principal Terms of Investments (Class D Units^)

Management Fees per annum (shall accrue daily on

Commitment Amount closing Class NAV and shall be payable in arrears to the
Investment Manager on a monthly basis)*

INR 1 crore to < INR 3 crore 2.25%

INR 3 crore to < INR 10 crore 1.75%

INR 10 crore and above 1.50%

Timelines (from the final closure)* Lock-in Period / Redemption Fee*

<=12 months Lock-in

>12 months and <=24 months 3% of NAV

Exit Load
>24 months and <=36 months 2% of NAV

>36 months and <=48 months 1% of NAV

>48 months but before the maturity date NIL

* The right of redemption shall be available only after 12 months from payment of final drawdown, subject to minimum Lock-in Period of 12 months from Final Closing.
Investors who default on payment of drawdown will not be able to redeem their investments.
^ Further, please note the above-mentioned fee structure/ class is applicable for investors approaching the fund through a distributor/ placement agent. For Investors
approaching the Fund directly or through a SEBI registered intermediary which is separately charging a fee to the Investor , such as an Investment Advisory fee or
portfolio management fee, there is separate fee structure/class which has lower management fees. For comprehensive details on various classes, fee structure, and
expenses please refer to Private Placement Memorandum and Contribution Agreement

35
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION
Thank you for your time!

36
STRICTLY FOR PRIVATE CIRCULATION ONLY. NOT FOR PUBLIC DISTRIBUTION