#11 Aptus Value Housing Finance India Limited Investor Presentation | Q1 FY24 ɅPTUS 田田#2Safe Harbor R APTUS Ⓡ This presentation and the accompanying slides (the "Presentation") which have been prepared by Aptus Value Housing Finance India Limited (the "Company") have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, the Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and action regulations, interest and other fiscal costs generally prevailing in the economy. The Company doe not undertake to make any announcement in case any of these forward looking statement become materially incorrect in future or update nay forward looking statements made from time to time by or on behalf of the Company. 2 APTUS™#33 Background APTUS Ⓡ R Commenced Operations in 2010 - 14th successful year of operations Regulated by RBI and supervised by NHB Run by professional management team backed by strong Founder Promoter and marquee investors Presence in 231 locations APTUS™#44 Key Strengths 1 Presence in Large Underpenetrated Market 2 Leader in Attractive South Market ɅPTUS 3 Good Asset Quality 4 Industry Leading Profitability 5 Good Governance, Management and Alignment APTUSⓇ ☑ APTUS™#55 Management Update Resilient Profitability with RoA at 8.21% and RoE at 16.93% 1 Lakh + Happy Customers d Branch reach beyond South:- Commenced Operations in Odisha APTUS Tech focused, Data driven fully connected operations - Sourcing to Collections APTUS Ⓡ R Strengthening of Middle Management in Business and Support functions across IT, Credit, Finance & Technical Awarded 'India's Leading Housing Finance NBFC (Mid) by Dun & Bradstreet at BFSI & FinTech Awards 2023 APTUS™#66 Journey - over the years AUM Rs. Crores CAGR -32% (5 Years) Equity From Marquee Investors 50K + Customers APTUSⓇ 1 Lakh + Customers 7123 Listed 6738 NSE BSE 5180 0 1st PE Equity Profitable 29 301 2010 ate 2011 AUM Rs.100 Cr WESTBRIDGE CAPITAL Expansion to Four States 100th Branch 1414 846 519 358 86 159 252 2012 2247 3183 4068 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (Q1) (#)-Represents on book portfolio -no Direct Assignment transactions done (#) APTUS™#7Financial Snapshot - 5 Years Rs in Crores FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) CAGR No. of Branches No. of Customers Disbursements AUM 143 175 190 208 231 231 30,749 43,987 58,069 83,565 1,089 1,271 1,298 1,641 2,247 3,179 4,068 5,180 1,07,146 2,395 6,738 ¦ 1,12,741 646 7,123 32% Total Income 337 523 655 840 1,129 315 I Interest Expenses (116) (185) (207) (209) (276)¦ (85)¦ Spread 222 339 449 632 853 i 230 i 40% Operating Expenses (67) (88) (98) (117) (165) (44) Pre-Prov Operating Profit 154 250 351 514 688! 186 45% ECL Prov./Write-Off's (1) (3) (6) (34) (34)¦ (2)¦ Profit Before Tax 153 247 345 480 654 183 44% Profit After Tax 112 211 267 370 503¦ 142 46% Ratios Spread to Assets (%) 12.10% 12.48% 12.38% 13.66% 14.32% 13.29% Opex to Assets (%) 3.67% 3.26% 2.70% 2.53% 2.75%i 2.55%i PPOP to Assets (%) 8.43% 9.22% 9.68% 11.13% 11.57% 10.73% ECL to Assets (%) 0.07% 0.10% 0.16% 0.75% 0.57%i 0.14% Return on Assets (PBT) (%) 8.35% 9.12% 9.52% 10.38% 10.99% 10.59% Return on Assets (PAT) (%) 6.10% 7.78% 7.37% 8.01% 8.44%i 8.21%i GNPA (%) 0.40% 0.70% 0.70% 1.19% 1.15% 1.29% NNPA (%) 0.30% 0.54% 0.49% 0.88% 0.86% 0.97% ROE (%) 17.38% 17.53% 14.47% 14.45% 16.34% 16.93% CRAR (%) 43.64% 82.50% 73.63% 86.25% 77.38% 75.38% Note 1: CAGR: FY 23 Vs FY19 7 Note 2: GNPA for FY19, FY20 & FY21 as per old RBI norms APTUSⓇ APTUS™#8Snapshot - June 2023 Assets under Management (AUM) 8 YoY +29% Rs. 7,123 Cr Spread 13.29% Consistently maintained +6% +23% Return on Assets +11 bps Disbursement Rs. 646 Cr Opex to Assets -3% -45 bps 2.55 % -20 bps Return on Equity 8.21% 16.93 % QoQ Consistently maintained Improved from 15.89% +20% Gross Stage 3 1.29 % Profit After Tax Rs. 142 Cr APTUS Ⓡ R +14 bps +5% APTUS™#9Diversified Income Stream With Niche Customer Focus Secured Portfolio - Home Loans (HL) / Small Business Loans (SBL) Quasi Home Loans 25% Insurance loans 4% HFC Top up loans 4% Home Loans 67% NBFC Small Business Loan & Non-HL 100% - OO AUM-Rs. 5862 Cr AUM - Rs 1261 Cr LIG Customers APTUSⓇ 78% Self Employed Borrowers 71% 9 Small business loans 21% Top up loans 2% Insurance loans 2% Quasi Home Loans 16% Consolidated AUM Rs. 7123 Cr Rural Focus 75% Avg Ticket Size < Rs.10 lacs >93% Home Loans 59% APTUS™#10100% In-House Operations Fully In-House Team... 10 色 1,499 256 Business Origination Credit ...Leading to Desired Business Outcomes Pricing Power 69 Reduced TAT CHAN 225 Legal & technical 459 Collection Low Takeover $ 144 HO/Operations $ Reduced Operational Risk APTUS® APTUS™#1111 Omni Channel Lead Generation Existing customers can refer leads through customer service APP Existing Customer Referrals 5.02 % ✓ Lead generation through social media Campaigns & Digital marketing Social Media Leads 2.35%* * Commenced in Q4 FY23 mer App ㅁ LEAD GENERATION Bandhu App Lead Generation igital Marketing O f Sales App ✓Unifying construction ECO System ✓ Referral app to generate leads Construction ecosystem 6.25% APTUSⓇ ✓Our sales executives sourcing organic leads M In-house Sourcing 86.38 % APTUS™#12Robust Underwriting, Monitoring and Collections Process APTUSⓇ 12 100% In-House Sourcing Leveraging Technology Stringent Credit Underwriting Robust Collection Management System • Lead Generation through Cust app,Ref app • Social media •> 231 Branches Digital Onboarding and KYC Cash flow assessment Pre & Post Disbursement 15-24 months Monitoring early default signs 0% Sourcing from DSA/Builders Credit verification app, property app and legal app - Optimal leverage of technology leading to efficient processing Centralized Underwriting 90 DPD Legal action / SARFAESI APTUS™#13Information & Technology: Key Enabler of Growth Lending Software End-to-end software solution Customer Relationship & Service Automated CRM and customer service requests R APTUS Ⓡ Human Resources Human resources management system application 13 1 2 3 4 5 6 Customer Onboarding Sales app, referral app, credit verfn. app and property app E-KYC, E-Nach Collections App, Payments automation via Bharat Bill Pay, Google Pay, Paytm etc Business Intelligence & Analytics "Power" analytics platform APTUS™#1414 Scalable and Robust Digital Landscape ✓ Mobile App for customer on-boarding, Credit Verification, Technical Valuation, Collections & Customer Service ✔Easy, Quick & Transparent process right from the field Loan kit in Whatsapp & Customer App ✓ Robotic Process Automation (RPA) to eliminate manual process ✓ Electronic Payments ✓ Leegality - eStamp & eSign Digital Agreement Lead generation through Campaigns. Tie-up with marketing partners to get the leads [Tuskmelon, Alchem] Brand awareness ✓ Location awareness ✔Product and service awareness 21 obility MACHINE MICROSOFT POWER RI LEARNING APTUSⓇ 1 ✓ Time Series Forecast Using Statistical Model and Tensor Flow for Bounce Prediction. ✓ Machine Learning Models for Analysis and Predictions. •Customer Profile Analysis •Loan Foreclosure Prediction Probability of Default model "Power BI" for Live Dashboards Data Analytic "End-To-End Digital Process " Digital Marketing O f Tech-Infra Razorpay BBPS▸ End-to-End ERP solution ✓ Backups on Cloud BHARAT BILL PAYMENT SYSTEM ✔Payment automation via Bharat Bill Pay Services and Razorpay API integration in Collection app APTUS™#1515 Risk and Data Science Backed Centralized Underwriting R APTUS Ⓡ Risk Management Tech- Intervention Centralized Processing ✓50 + key data points are collected for Customer Profile Analysis ✓ Stage-wise disbursement through technical visits ✓ Multiple touch points to ensure thorough verification in underwriting process ✓Tech enabled evaluation of customers ✓ Integration of credit score card with lending application for easier credit evaluation ✓ Analyzing profiles behaviour for continuous improvement of parameters through machine learning for Better & Faster credit decisioning ✓ Consistency in underwriting with expertise in state- wise analysis along with linguistic skills ✓ Effective training, knowledge sharing and monitoring process ✔Quick adoption to process change Loans approved within 72 hrs > 90 % APTUS™#16Scalability Tamil Nadu Andhra Pradesh Telangana Karnataka Per Capita GDP 1.8x Compared to national 1.1x 1.5x 1.5x average of INR 180k GDP Growth 13% 9% 8% 7% India average: 6.1% 16 APTUSⓇ Branch Productivity as on June 30, 2023 AUM per Branch (Rs. Cr) # of Branches 23 35 173 36.94 % of AUM as on State No. of Branches 18.98 FY 24 FY 23 FY 22 FY 21 FY 20 (Q1) TamilNadu 86 42% 43% 48% 52% 56% AndhraPradesh 86 36% 35% 31% 28% 24% Telangana 36 14% 14% 12% 10% 10% Karnataka 21 8% 8% 9% 10% 10% Odisha 2 0% 0% 0% 2.96 Total 231 100% 100% 100% 100% 100% (*) - Additional 7 branches commenced operations in July 2023 <1 Year Old 1-3 Year Old >3 Year Old APTUS™#17Strong ESG Focus 17 R APTUS Focus on financial inclusion Improving Living Standards Strong Corporate Governance 78% LIG 71% Self-employed 38% New to Credit Employment in rural / semi-urban areas Support to borrowers in tier 2/3/4 locations leading to financial inclusion NIL Material Civil litigation Diversified Experience of Board Members across academic and professional domains Business Responsibility & Sustainability Report -published as part of Integrated Annual report for the FY23 Corporate Social Responsibility -focusing on improving education, health and livelihood APTUS™#18Performance Highlights Disbursement(Rs. Cr) 668 18 525 646 5519 AUM (Rs. Cr) 6738 Gross NPA(%) 7123 1.75% APTUS 1.29% 1.15% Q1 FY 23 Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 Growth YoY 23% Growth YoY 29% PAT (Rs. Cr) ROA (%) ROE (%) 8.88% 142 16.93% 8.44% 8.21% 135 119 Q1 FY 23 Growth 16.34% 15.89% Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 Q1 FY 23 Q4 FY 23 Q1 FY 24 YOY 20% R APTUS™#19Consistent Spreads Yields/Cost of Borrowings (%) 17.20% 17.03% 16.89% 17.00% 17.15% R APTUS 16.85% 16.85% 16.90% 17.00% 17.15% 9.80% 8.10% 8.43% 8.30% 7.74% 7.68% 7.70% 7.90% 8.10% 8.30% FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 NIM (%) 9.15% 9.17% 9.15% 8.90% 8.85% 9.00% 8.90% 8.85% 8.60% 7.40% FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 19 APTUS™#20Opex and ROA 20 20 3.40% 2.78% 2.75% 2.53% 2.55% Opex (%) R APTUS 2.77% 2.75% 2.75% 2.55% 2.44% FY 20 FY 21 FY 22 FY 23 FY 24 (Q1) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 ROA (%) 8.88% 8.71% 8.53% 8.44% 8.21% 8.44% 8.21% 8.00% 7.37% 7.01% IIII Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 FY 20 FY 21 FY 22 FY 23 FY 24 (01) APTUS™#21Asset Quality Gross NPA (%) PCR - 82% 1.75% 1.47% 1.44% 1.29% 1.15% 1.32% Net NPA (%) R APTUS 1.10% 1.08% 0.97% 0.86% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Non Cash Collections Collection efficiency (%) 30+ DPD (%) >95% 101.17% 100.21% 100.31% 102.90% 99.52% 6.48% 6.50% 6.27% 6.27% 5.90% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 21 APTUS™#22Provision for Contingencies (ECL) 22 22 Consolidated 31-Mar-23 30-Jun-22 APTUS Ⓡ R Rs in lakhs 30-Jun-23 31-Mar-22 Gross Stage 3 9,224 7,767 9,654 6,184 % portfolio in Stage 3 1.29% 1.15% 1.75% 1.19% ECL Provision Stage 3 2,306 1,942 2,414 1,546 Net Stage 3 6,919 5,825 7,241 4,638 Provision coverage ratio (PCR) 25.00% 25.00% 25.00% 25.00% Gross Stage 2 35,474 31,998 26,050 45,156 % portfolio in stage 2 4.98% 4.75% 4.72% 8.72% ECL Provision Stage 2 2,596 2,551 902 1,021 Net Stage 2 32,878 29,446 25,147 44,135 Provision coverage ratio (PCR) 7.32% 7.97% 3.46% 2.26% Gross Stage 1 6,67,634 6,34,066 5,16,195 4,66,620 % portfolio in stage 1 ECL Provision Stage 1 93.73% 2,649 Net Stage 1 6,64,984 Provision coverage ratio (PCR) 0.40% 94.10% 2,625 6,31,441 0.41% 93.53% 1,755 5,14,440 0.34% 90.09% 1,602 4,65,018 0.34% Total AUM 7,12,332 6,73,831 5,51,899 5,17,960 ECL Provision 7,551 7,119 5,071 4,169 Provision coverage ratio (PCR) 1.06% 1.06% 0.92% 0.80% APTUS™#2323 Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix NCDs, 9% NHB, 28% Sources of funds mix(%) Banks, 60% Others, 3% Avg. Tenure of FY 24 (Q1) FY23 FY22 Borrowings (months) 84.2 86.9 84.7 • Others represents Securitisation Credit Rating (ICRA) - AA (-) Stable Credit Rating(CARE) - AA (-) Stable Public Sector Private Sector Refinance DFI 20+ Lender Relationships No Exposure to Short term loan incl CPS IFC International Finance Corporation WORLD BANK GROUP राष्ट्रीय आवास बैंक NATIONAL HOUSING BANK HDFC BANK AXIS BANK ICICI Bank FEDERAL BANK YES BANK CC kotak Kotak Mahindra Bank SOUTH INDIAN Bank KVB) Karur Vysya Bank Swart way to Dand CSB Bank AU AUSMALL FINANCE BANK A SCHEDULED COMMERCIAL BANK QSBI IndusInd Bank DCB BANK Indian Bank बैंक ऑफ इंडिया Bank of India बैंक ऑफ़ बड़ौदा Bank of Baroda बैंक ऑफ महाराष्ट्र Bank of Maharashtra भारत सरकार का उद्यम APTUS® APTUS™#24ALM Surplus Position as on 30 Jun 2023 (Rs.Cr) 24 < 3 months 432 956 452 3-6 months 748 6m to 1 year 1 to 3 years 3 to 5 years 595 5 to 7 years 7 to 10 years >10 years 519 721 1027 159 761 Surplus 524 296 306 2518 377 2895 1404 2632 Outflows Inflows 2149 2494 1228 1899 1630 602 APTUS Ⓡ R APTUS™#25Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (Cr) As on Jun-23 Borrowings - Fixed Vs. Floating 25 7123 23.00% 77.00% Loan Assets 7123 APTUS® 24.57% 60% 61% 62% 58% 57% 59% 58% 33.93% 41.50% 40% 39% 42% 43% 38% 41% 42% Borrowings/Equity Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Fixed % Floating % Equity Fixed Floating gap between Loan Assets & Borrowings filled by a portion of Equity APTUS™#26Comfortable liquidity position/Capital Adequacy A. Liquidity Particulars Unecumbered Cash & Cash equivalents Unavailed Sanctions from Banks Total Rs in Crores 30-Jun-23 497 400 897 R APTUS Ⓡ 26 FY 24 FY 24 Particulars Q2 Q3 Opening Liquidity 897 1,034 Add: Principal repayments & Surplus * Rs.1188 Crores Surplus available for business upto 525 565 from Operations Dec 2023 Less: Debt repayments (388) (411) Closing Liquidity 1,034 1,188 * Excluding Fresh Sanctions B. Capital Adequacy Capital Adequacy as on 30 June 2023 -75.38% APTUS™#27Key Growth Strategies 16 27 7 5:1 Continued Focus on Existing Segment & strengthen focus on SME • Ticket Size in INR 0.5 - 1.5mn range in HL and SME Large headroom in new to credit, retail segment Different templates of customer profiles to increase business while managing risks Deeper Penetration in Existing Markets & Expand in new markets Increasing penetration and Contiguous expansion Branch expansion in new markets - Odisha and Maharashtra Continued focus on productivity & Credit Cost . Focus on productivity, Credit Cost and Opex Continue to improve credit ratings, Cost of funds. APTUS Ⓡ R APTUS™#28Experienced and Well Diversified Board 28 Chairman Non-Executive Nominee Directors M. Anandan Executive Chairman Sumir Chadha KP Balaraj Nominee Director - WestBridge Nominee Director - WestBridge Non-Executive Independent Directors S. Krishnamurthy Former MD and CEO, SBI Life Insurance K. M. Mohandass Partner, KM Mohandass & Co Charetered Accountants. Non-Executive Independent Directors Krishnamurthy Vijayan Former MD, JPM Asset Mgmt. VG Kannan Former- MD, SBI APTUS Ⓡ Non-Executive Director Shailesh J. Mehta Partner, Granite Hill Capital Partners Mona Kachhwaha Director Impact Investors Council Managing Director P. Balaji Managing Director APTUS™#29Stable Management 29 29 Balaji P Managing Director Several years of experience in financial Services including HFC C.T. Manoharan Chief Business Officer Rich experience in housing finance industry across sales, channel management and distribution V. Krishnaswami Sr. Vice President - Information Technology Experience in strategizing and implementing digital technology solutions, IT designs and, infrastructure. Sundara Kumar V Sr. Vice President - Legal & Receivables Legal experience in Mortgage finance, SARFAESI and arbitration procedures in management of collections Naveen Kumar R Associate VP - Operations & Compliance Experience in Housing Finance Industry specific to Operations, Customer Service, Portfolio analytics and LOS/LMS 16 APTUS Ⓡ R John Vijayan Chief Financial Officer Experience in Financial Services in the areas of Operations, Finance, Risk Management and Internal Audit. Srinivasan K Associate VP- Credit Rich experience in areas of Credit & Risk Management, Fraud Control and operations in retail finance. N.Srikanth Vice President - HR Seasoned Professional with experience in HR planning, recruitment, training, induction, employee relations and engagement APTUS™#30Diversified Shareholding Shareholding Pattern Public & Others 6.82% APTUSⓇ Top Institutional Shareholders Key Investors Founder Promoter M.Anandan 25.02% Investor Details % of holding Malabar Group 8.31 DII 2.72% Capital Research 3.39 Steadview Capital 3.18 Ward Ferry 3.08 Sequoia 2.61 Aberdeen 1.71 FII 28.25% - WestBridge 37.19% Investor Promoter Vanguard 1.43 Genesis 1.11 30 APTUS™#3131 Annexures APTUS™#3232 Consolidated Statement of Profit and Loss(*) APTUSⓇ Rs in Crores FY 23 Particulars Full Year FY 24 Q1 FY 23 FY 23 Growth % 1,058.40 Interest Income 296.81 Q1 233.00 Q4 Q1-0-Q1 290.61 27% 70.60 Fee and Other Income 18.06 15.76 17.78 15% (275.91) Interest Expenses (84.74) (54.26) (77.66) 56% 853.08 Spread 230.13 194.50 230.72 18% (165.24) Operating Expenses (44.22) (32.67) (46.58) 35% (34.12) ECL Provisions / Write-Off's (2.49) (9.52) (7.75) (74%) 653.71 Profit Before Tax 183.42 152.31 176.38 20% (150.70) Prov. For Tax (41.17) (33.46) (41.08) 503.01 Profit After Tax 142.25 118.85 135.30 20% (*) Based on Ind AS APTUS™#3333 Consolidated Statement of Assets and Liabilities(*) (*) Based on Ind AS - Mar-23 Particulars Jun-23 Rs in Crores Jun-22 Source of Funds 99.61 Share capital 99.61 99.38 3,239.72 Reserves & surplus 3,282.03 2,935.63 3,339.33 Net worth 3,381.64 3,035.01 3,786.02 Borrowings 4,133.98 2,938.96 50.70 Other Liabilities & Provisions 27.84 52.29 7,176.05 Total Source of Funds 7,543.45 6,026.26 Application of Funds 6,592.14 Loan Assets 7,006.23 5,402.72 4.55 Fixed Assets 4.64 4.85 511.42 Liquid Assets - Bank FD's / MF's etc. 496.67 572.92 67.93 Other Assets 35.92 7,176.05 Total Application of Funds 7,543.45 45.77 6,026.26 APTUS Ⓡ R APTUS™#3434 ROA Tree Particulars Return on Assets (ROA)* FY 24 (%) FY 23 R APTUS Ⓡ Q1 Q1 Revenue from Operations 17.60% 17.71% Other Income 0.60% 0.63% Total Revenue 18.20% 18.34% Interest Expenses (4.91%) (4.06%) Spread 13.29% 14.28% ECL Provisions / Write-Off's (0.14%) (0.71%) Operating Expenses (2.55%) (2.44%) Profit Before Tax - RoA 10.59% 11.13% Profit After Tax - RoA 8.21% 8.88% Profit After Tax - RoE # 16.93% 15.89% * Ratio on Avg Loan Book # Ratio on Avg Networth APTUS™#35Thank You 8B, Doshi Towers, 205, Poonamallee High Rd, Kilpauk, Chennai - 600010., Phone: 044-45650000, E-Mail: [email protected], Website: www.aptusindia.com 35 R APTUS Ⓡ APTUS™