#1BAJAJ B FINSERV BAJAJ FINANCE LIMITED Q4 FY22 Investor Presentation 26 April 2022#2Presentation Path Section 01 Kil Section 03 Executive Financial summary - Q4 performance - Q4 FY22 3 FY22 Click on the section to view Section 02 Bajaj Finance Limited overview 17 MMSection 05 Customer franchise and distribution reach 31 ✓ A Section 04 Asset liability management 35 BAJAJ FINANCE LIMITED Section 07 Update on credit quality 42 48 Section 06 Business segment wise AUM 46 2#3Section 01 Executive summary - Q4 FY22 1.1 BAJAJ FINANCE LIMITED Quarter gone by 1.2 Lead financial indicators 1.3 Business Transformation Update 1.4 Consolidated financial performance - FY22 3#4Quarter gone by BAJAJ FINANCE LIMITED An excellent quarter for the Company across balance sheet growth, portfolio quality and profitability. Omnipresence agenda continued to accelerate in Q4. Overall, excited about FY23 prospects. Core AUM Opex to NII PAT ROE* Net NPA Q4 FY22 $ 25,612 MM YoY Growth 26% 34.6% $ 323 MM 5.7% 0.68% Q4 FY21 34.5% YoY Growth 80% Q4 FY21 3.7% Q4 FY21 0.75% FY22 $ 25,612 MM 34.6% 937 MM 17.4% 0.68% YoY Growth FY21 YoY Growth FY21 FY21 26% 30.7% 59% 12.8% 0.75% AUM (including IPO financing receivables) stood at $ 26,327 MM *Not annualized 4#5Lead financial indicators BAJAJ FINANCE LIMITED 1. Strong Core AUM growth* of $ 1,445 MM in Q4. In Q4, AUM growth was secular across all lines of businesses. In FY22, the Company added $ 5,241 MM of core AUM. 2. AUM as of 31 March 2022 was up 29% at $ 26,327 MM as against $ 20,393 MM as of 31 March 2021. In FY22, AUM composition remained steady. 3. In Q4, the Company booked 6.28 MM new loans as against 5.47 MM in Q4 FY21. In FY22, new loans booked were 24.68 MM as compared to 16.88 MM in FY21. 4. In Q4, volume growth in B2B consumption businesses was 15% and disbursements growth was 27%. B2B disbursements were $ 1,758 MM in Q4 FY22 as against $ 1,387 MM in Q4 FY21. 5. In Q4, the Company added 2.21 MM new customers to its franchise. 6. Customer franchise stood at 57.57 MM as of 31 March 2022, a growth of 19% YoY. Highest ever customer franchise addition of 9 MM in FY22. Cross sell franchise stood at 32.77 MM, a growth of 22% YoY. The Company is comfortable adding 8-9 MM new customers in FY23. 7. In Q4, the Company added 81 new locations. Geographic presence stood at 3,504 locations and 1,33,200+ distribution points as of 31 March 2022. 8. Competitive intensity remained elevated across products. The Company continues to protect its margin profile across businesses. It reflected in core AUM growth of 26% and NIM growth of 30%. 9. In Q4, cost of funds was 6.71%. Liquidity buffer stood at $ 1,348 MM as of 31 March 2022. Liquidity buffer has now normalized to pre-covid levels. *Core AUM growth = (AUM growth for the quarter - short tenor IPO financing book + additional losses on account of COVID, if any). 5#6Lead financial indicators BAJAJ FINANCE LIMITED 10. Deposits book grew by 19% YOY to $ 4,107 MM as of 31 March 2022. Its contribution to consolidated borrowings stood at 19% as of 31 March 2022. The Company has created a deposits V2 plan to grow deposits book significantly over the next 3 years. 11. In Q4, Opex to NII was 34.6%. The Company continues to invest in teams and technology for business transformation. Given the deep investments being committed to Omnichannel strategy (geo-expansion, app platform, web platform), the Company expects Opex to NII to remain elevated for FY23. 12. In Q4, loan losses and provisions were $ 94 MM. This includes an additional charge of $ 13 MM for one large B2B commercial account. In Q4, loan loss to average receivables was 0.38%. On a quarterly basis this metric is now better than pre-covid levels. The Company has a management overlay of $ 141 MM as of 31 March 2022. 13. In Q4, portfolio credit metrics and debt management efficiencies across products improved further and is better than pre- covid levels across most businesses. 14. GNPA & NNPA stood at 1.60% and 0.68% as of 31 March 2022 as against 1.73% and 0.78% as of 31 December 2021. The Company's GNPA and NNPA ratios are now better than pre-covid levels. 15. Overall stage 2 assets stood at $ 515 MM as of 31 March 2022 as against $ 707 MM as of 31 December 2021. 16. Overall stage 3 assets stood at $ 418 MM as of 31 March 2022 as against $ 414 MM as of 31 December 2021. This includes one large B2B commercial account of $ 52 MM which has moved to Stage 3 in Q4 FY22. 17. The portfolio composition across Stage 1, Stage 2 and Stage 3 is now better than pre-covid metrics. Stage 1 is at 96.43%, Stage 2 is at 1.97% and Stage 3 at 1.60% as against pre-covid Stage 1 of 95.83%, Stage 2 of 2.51% and Stage 3 of 1.65% as of 31 December 2019. 6#7Lead financial indicators 18. On portfolio credit quality, 10 portfolios are green and 1 is yellow (two and three-wheeler). BAJAJ FINANCE LIMITED 19. Consolidated post tax profit grew by 80% to $ 323 MM in Q4 FY22 as compared to $ 180 MM in Q4 FY21. 20. Capital adequacy remained strong at 27.22% as of 31 March 2022. Tier-1 capital was 24.75%. 21. The Board of Directors has recommended a dividend of $ 0.27 per equity share of the face value of $ 0.03 (1000%) for FY22. This amounts to 19.07% of the Company's standalone profit for FY22 and is in line with the Company's dividend distribution policy. 22. On 15 February 2022, RBI allowed deferment till 30 September 2022 of Para 10 of its earlier circular dated 12 November 2021 pertaining to upgradation of NPA accounts only on receipt of entire overdue of the customer. As a matter of prudence, the Company has not opted for this deferment. Bajaj Housing Finance Limited (BHFL) 23. BHFL AUM grew by 37% to $ 7,110 MM as of 31 March 2022. The Company crossed a significant milestone of 50K crore ($ 6,667 MM) AUM during Q4 FY22. 24. In Q4, Net Interest Income grew by 22% to $ 60 MM from $ 49 MM in Q4 FY21. 25. In Q4, Opex to NII stood at 32.5% as against 26.6% in Q4 FY21. Since Q3, BHFL has accelerated its investment in geographic expansion and deepening of organization structures for next level of growth. 26. In Q4, loan losses and provisions were $ 5.1 MM as against $ 4 MM in Q4 FY21. BHFL has maintained its management overlay provision at $ 28 MM as of 31 March 2022. 27. GNPA & NNPA stood at 0.31% and 0.14% as of 31 March 2022 as against 0.35% and 0.18% as of 31 December 2021. 7#8Lead financial indicators BAJAJ FINANCE LIMITED 28. In Q4, BHFL delivered post tax profit of $ 26 MM as against $ 24 MM in Q4 FY21, a growth of 11%. 29. Capital adequacy of BHFL was 19.72% as of 31 March 2022. On 7 April 2022, BFL infused capital of $ 333 MM in BHFL to support its capital needs for next 24 months. Bajaj Financial Securities Limited (BFSL) 30. In Q4, BFSL added 62K customers to its broking franchise. Its Retail and HNI customer franchise stood at 331K as of 31 March 2022. 31. Margin Trading Finance book grew to $ 96 MM as of 31 March 2022 as against $ 25 MM as of 31 March 2021. 32. In Q4, total Income was $5 MM as against $ 2 MM in Q4 FY21. 33. In Q4, Profit after tax was $ 1.2 MM as against $ 0.6 MM in Q4 FY21. 8#9BAJAJ FINANCE LIMITED Business Transformation update 9#10Omnipresence strategy update BAJAJ FINANCE LIMITED In FY23, Omnipresence strategy will expand from geography and digital app platform to also include creation of a digital web platform. 1. Web remains an extremely important driver of traffic, volumes and service to customers in the digital space. As part of its Omnichannel strategy, the Company is building a web platform which will provide a platform agnostic experience across web and app. In the last 7-9 months, the Company has invested in domain talent and technology to build a large digital web platform. 2. In FY23, the Company will completely transform web experience enabled by a common technology infrastructure layer between app and web. The UI/UX will be identical to digital app platform for ease of navigation and customer experience. The new digital web platform will also have significant expansion of content infrastructure to drive search traffic. Once implemented, the digital web platform will offer a consistent experience across both app and web ('web' = 'app') and customers will be able to commence journey on one platform and conclude on the other platform. 3. Phase 1 of web platform will go live by October 2022 and phase 2 by March 2023. Post implementation of both phases, customers will get full-service platform agnostic experience (commence on app, conclude on web and vice versa) Geography 4. In Q4, the Company added 81 new locations to its distribution footprint. Total geographic footprint stood at 3,504 locations and 1,33,200+ distribution points. In FY22, the Company added 516 new locations. The Company continues to invest deeply in UP, Bihar and north-eastern states. 10#11Omnipresence strategy update Digital app platform BAJAJ FINANCE LIMITED 5. Insurance marketplace went live in March 2022 offering 4 motor insurance products, 9 health insurance products, 8 asset insurance products and 345 pocket insurance products. Its key features include compare, review, buy policies, service section including policy documents, claims request, updation of policy details and dedicated real estate for insurance partner for hosting their contents like company information, product information, customer testimonials etc. 6. Investments marketplace in partnership with Bajaj Finserv Direct Ltd. went live in February 2022 offering various mutual funds and fixed deposit options to customers. Its key features include options to explore and invest, seamless onboarding for existing mutual fund investors, easy online KYC process for new investors, various investment calculators, portfolio view, etc. 7. Rewards management system (RMS) went live in March 2022. RMS will drive higher customer engagement on the app enabling higher conversion rates. RMS delivers rewards in the form of reward points, cash back into wallet and vouchers for online & offline purchases. In Q4, rewards program has been implemented for all payment products and plan is to deploy the same for all loan journeys as we deliver phase 2 by Q3 FY23. 8. In Q4, the Company added net 2.6 MM users on its digital app platform as against 3.6 MM in Q3 FY22. In FY23, the Company intends to add 14-16 MM net new users. 9. The Company has net 19.1 MM active users on its digital app platform as of 31 March 2022 as against net 16.5 MM active users as of 31 December 2021. In FY23, the Company intends to have 33-35 MM net active users. 10. As articulated in Q3, the Company had planned to build 17 new features and components as part of its phase 2 digital app platform. The final additional features and components which will get deployed in FY23 between 3 sprints, now stands at 62 features and components. 11#12Omnipresence strategy update BAJAJ FINANCE LIMITED 11. In Q4, the Company booked 455K new EMI card customers digitally. Cards In Force (CIF) of EMI cards acquired digitally now stands at 1.8 MM. In Q4, this CIF delivered 234K loans. 12. In Q4, EMI store visits were 36.9 MM as against 44.7 MM in Q3 FY22 which had festival seasonality. In Q4, the Company booked 526K new loans from B2B marketplace as against 393K new loans in Q3 FY22. EMI store currently hosts 25,972 SKUs across 27,449 merchants and 375 manufacturers as of 31 March 2022. 13. In Q4, digital app platform delivered volumes of $ 240 MM for personal loan and 29K cards for credit card distribution business. 14. In Q4, debt management services transactions on digital app platform stood at 385K as against 76K in Q3 FY22. 15. Flexi loan transactions on digital app platform went live in December 2021. In Q4, flexi loan transactions through digital app platform stood at 780K. 16. In Q4, the Company added 18 engagement partners as part of its app in app framework. The Company now has 48 engagement partners on its app platform across B2B merchants, lifestyle merchants and other engagement categories. Payments 17. QR based P2M acquiring business has gone live. Distribution expansion is underway. 18. The Company has significantly accelerated its investments in building a full-service payments business across issuance and acquiring. It has created a strategic business unit for payments to accelerate payments initiatives. In FY23, the Company has plans to launch P2P, EDC, PG businesses on its own or through strategic partnerships. In FY23, the Company has set aside deep investments to grow payments business. 12#13Omnipresence strategy update BAJAJ FINANCE LIMITED 19. In Q4, the Company added 1.7 MM wallets as against 2.5 MM in Q3 FY22. The Company has 6.5 MM customers on its wallet as of 31 March 2022. In Q4, - 1 MM transactions were done by these customers. In FY23, as a result of rewards management system launch, all cashback promotion initiatives across the Company will be routed through wallets, helping create a virtuous cycle of engagement and velocity. 20. In Q4, 1.1 MM new UPI VPAs were created as against 550K in Q3 FY22. The Company has 2.1 MM VPAs as of 31 March 2022. These customers made 890K transactions in Q4 FY22. 21. In Q4, 1.4 MM bill payment transactions were executed by the customers using the Company's bill pay service. 13#14BAJAJ FINANCE LIMITED Consolidated financial performance - FY22 14#15Executive summary FY22 - Consolidated B BAJAJ FINSERV Balance Sheet and Franchise: 1. New loans booked increased by 46% to 24.68 MM as of 31 March 2022 as against 16.88 MM as of 31 March 2021. 2. Customer franchise increased by 19% to 57.57 MM as of 31 March 2022 as against 48.57 MM as of 31 March 2021. Operating Efficiencies 3. Net Interest Income for FY22 was up by 27% to $ 2,919 MM as against $ 2,303 MM in FY21. 4. Opex to NII for FY22 was 34.6% as against 30.7% in FY21. Credit Cost 5. Loan losses and provisions (expected credit loss) for FY22 stood at $ 640 MM as against $ 796 MM in FY21. In FY22, loan loss to average receivables was 2.84%. The Company has a management overlay provision of $ 141 MM as of 31 March 2022. Profitability and Capital 6. Profit after tax for FY22 grew 59% to $ 937 MM as against $ 589 MM in FY21. 7. Capital adequacy ratio (including Tier-Il capital) as of 31 March 2022 stood at 27.22%. Tier-1 capital stood at 24.75%. Consolidated leverage was 4.9X. The Company remains one of the most capitalised companies in financial sector amongst large companies. 15#16Executive summary FY22 - Consolidated B BAJAJ FINSERV 8. The Board of Directors has recommended a dividend of $ 0.27 per equity share of the face value of $ 0.03 (1000%) for FY22. This amounts to 19.07% of the Company's standalone profit for FY22 and is in line with the Company's dividend distribution policy. 9. ROA for FY22 was 4.2% and ROE was 17.4% despite carrying high capital and impact of 'Delta' wave on Q1 FY22. Subsidiaries: 10. BHFL Profit after tax for FY22 grew by 57% to $ 95 MM as against $ 60 MM in FY21. 11. BHFL Net Interest Income grew by 36% in FY22 to $ 215 MM as against $ 159 MM in FY21. 12. BHFL Opex to NII stood at 29.2% in FY22 as against 27.7% in FY21. 13. BHFL Capital adequacy ratio (including Tier-Il capital) as of 31 March 2022 stood at 19.72% 14. In FY22, BFSL delivered total income of $ 17 MM and Profit after tax of $ 2.3 MM. 15. In FY22, BFSL acquired 289K customers. The customer franchise stood at 331K as of 31 March 2022. 16#172.1 BAJAJ FINANCE LIMITED Bajaj group structure 2.2 What do we stand for Section 02 Bajaj Finance Limited overview 2.3 2.4 2.5 Our general long-term guidance on Financial metrics shareholder profile Key strategic differentiators Our shareholder profile 2.6 15-years financial snapshot 2.7 Product suite 2.8 Executive summary 17#18Bajaj group structure Bajaj Finserv Ltd (Listed) Financial services arm 3 52.49% Bajaj Finance Ltd I (Listed) I I I I I I Lending business arm 39.16% Bajaj Housing Finance Ltd Mortgage Lending Bajaj Financial Securities Ltd Broking & Depository Above shareholding is as of 31 March 2022 100% 100% Bajaj Holdings & Investment Ltd (BHIL) (Listed) 74% Bajaj Allianz Life Insurance Company Ltd Protection and retiral 33.43% BAJAJ FINANCE LIMITED Bajaj Auto Ltd (Listed) Auto business arm 74% 80.13% Bajaj Allianz General Insurance Bajaj Finserv Direct Ltd Company Ltd Protection Digital Marketplace 100% Bajaj Finserv Health Ltd Healthcare Ecosystem Solutioning 100% 100% 100% Bajaj Finserv Asset Management Ltd Mutual Fund Bajaj Finserv Ventures Ltd Alternate investments Bajaj Finserv Mutual Fund Trustee Ltd Mutual Fund 1. 60.42% holding through promoter holding company and promoter group 2. 53.77% holding through promoter holding company and promoter group 3. 55.86% holding through promoter holding company and promoter group 20 20#19What do we stand for BAJAJ FINANCE LIMITED "Non-bank with strategy & structure of a bank" "Focused on mass affluent & above clients with a strategy to cross sell" "Diversified financial services strategy with an optimal mix of risk and profit to deliver a sustainable business model" "Business construct to deliver a sustainable ROA of 4-4.5% and ROE of 19-21% in the long term" "Focused on continuous innovation to transform customer experience and create growth opportunities" 19#20General long-term guidance on financial metrics BAJAJ FINANCE LIMITED AUM growth in corridor of 25%-27% Profit growth in corridor of 23%-24% GNPA in corridor of 1.4%-1.7% NNPA in corridor of 0.4%-0.7% میرا Return on assets in corridor of 4%-4.5% Ki Return on equity in corridor of 19%-21% 20 0#21Key strategic differentiators Part of the Bajaj group - one of the oldest & most respected business houses Focus on mass affluent and above clients Strong focus on cross selling assets, payments, insurance and deposit products to existing customers A well diversified balance sheet Agile and innovative Committed to technology and analytics to transform customer experience Committed to digital BAJAJ FINANCE LIMITED A trusted brand with strong brand equity Total customer franchise of 57.57 MM Centre of Excellence for each business vertical to bring efficiencies across businesses and improve cross sell opportunity Consolidated lending AUM mix for Consumer: Rural: SME: Commercial: Mortgages stood at 32%: 10%: 13% : 14% : 31%. Consolidated borrowing mix for Money Markets: Banks: Deposits: ECB stood at 50%: 28% : 19% : 3% Continuous transformation in product features and digital technologies to maintain competitive edge Has helped achieve multi product cross sell and manage risk & controllership effectively. Focussed on delivering frictionless experience to customer Has adopted digital technology trends and navigated from digitisation to digitalisation. Now transforming to a customer centric digital enterprise 21#22Our shareholder profile FII & FPI 21.41% Corporate BAJAJ FINANCE LIMITED Top 20 investors & their holdings S.No Name of Shareholder As on 31 As on 31 As on 31 Mar 22 1 BAJAJ FINSERV LTD 52.49% Dec 21 52.65% Mar 21 52.74% 2 GOVERNMENT OF SINGAPORE 3.19% 3.13% 4.20% 3 MAHARASHTRA SCOOTERS LIMITED 3.13% 3.14% 3.15% 4 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS BLUECHIP FUND 0.79% 0.73% 0.69% 5 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS LONG TERM EQUITY FUND 0.75% 0.75% 0.80% 6 7 NEW HORIZON OPPORTUNITIES MASTER FUND SBI-ETF NIFTY 50 8 NEW WORLD FUND INC 0.74% 0.77% 0.77% 0.74% 0.71% 0.63% 0.61% 0.58% 0.56% VANGUARD EMERGING MARKETS STOCK INDEX FUND, 9 A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 0.54% 0.54% 0.50% 4.34% Shareholding profile Promoters & Promoter Group 10 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 0.50% 0.51% 0.45% 11 SBI LIFE INSURANCE CO. LTD 0.48% 0.46% 0.38% 55.86% 12 Resident & non resident individuals 9.74% AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS FOCUSED 25 FUND 0.45% 0.48% 0.46% 0.58% MF Others 8.08% 13 SBI-ETF SENSEX 14 EUROPACIFIC GROWTH FUND 15 ISHARES CORE EMERGING MARKETS MAURITIUS CO 16 PEOPLE'S BANK OF CHINA 0.44% 0.41% 0.34% 0.44% 0.37% 0.27% 0.40% 0.39% 0.39% 0.39% 0.39% 0.41% 17 ST. JAMES'S PLACE EMERGING MARKETS EQUITY UNIT TRUST MANAGED BY WASATCH ADVISORS INC 18 DF INTERNATIONAL PARTNERS 0.39% 0.41% 0.00% 0.38% 0.38% 0.38% Above shareholding is as of 31 March 2022 FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGING MARKETS OPPORTUNITIES FUND 20 SBI EQUITY HYBRID FUND 19 0.37% 0.35% 0.39% 0.35% 0.35% 0.35% 22#2315-years financial snapshot BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 CAGR Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 (15 yrs.) AUM 330 339 538 1,010 1,748 2,336 3,208 4,321 5,897 Income from operations 67 80 122 187 290 415 543 722 8,026 10,990 978 1,332 1,701 15,452 19,620 20,393 26,327 37% 2,467 3,518 3,558 4,219 34% Interest expenses 23 22 27 49 99 161 210 300 390 507 615 883 1,263 1,255 1,300 34% Net Interest Income (NII) 44 58 95 138 190 254 333 423 587 825 1,086 1,584 2,255 2,303 2,919 35% Operating Expenses 26 29 43 617 61 89 113 153 190 253 342 436 560 755 708 1,011 30% Loan Losses & Provision 15 22 35 27 21 24 34 51 72 107 137 200 524 796 640 31% Profit before tax 4 7 18 49 80 116 145 181 262 376 512 824 976 799 1,267 51% Profit after tax 3 5 12 33 54 79 96 120 171 245 333 533 702 589 937 51% Ratios FY08 FY09 FY10 FY11 Opex to NII Return on assets Return on equity 2.0% 1.4% 2.8% 4.4% 4.2% 4.1% 3.2% 8% 19.7% 24.0% 21.9% 19.5% Net NPA * Provision coverage ratio CRAR (standalone) Leverage ratio 2.6 7% 30% 32% 55% 79% 89% 83% 76% 40.7% 38.4% 25.9% 20.0% 17.5% 21.9% 19.1% 2.5 3.8 5.9 6.4 5.3 6.2 FY12 FY13 FY14 FY15 58.1% 50.6% 44.8% 44.4% 47.0% 44.6% 46.0% 45.0% 43.1% 0.7% 3.6% 3.3% 3.5% 20.4% 20.9% 5.50% 2.20% 0.80% 0.12% 0.19% 0.28% 0.45% 0.28% 0.44% 71% 77% 19.5% 6.3 FY16 FY17 FY18 FY19 FY20 FY21 FY22 41.4% 40.2% 35.3% 33.5% 30.7% 34.6% 3.7% 3.7% 4.2% 4.1% 3.1% 4.2% 21.6% 20.1% 22.5% 20.2% 12.8% 17.4% 0.43% 0.63% 0.65% 0.75% 0.68% 74% 18.0% 6.8 20.3% 70% 24.7% 60% 20.7% 60% 25.0% 58% 28.3% 58% 27.2% 6.6 5.4 6.3 5.1 4.7 4.9 @ All figures till including FY17 are as per previous GAAP on standalone basis. All figures from FY18 onwards are as per IndAS and on consolidated basis. * As per the RBI regulations, NNPA numbers for up to FY15 are at 6 months overdue, FY16 are at 5 months overdue, FY17 are at 4 months overdue and FY18 onwards are at 3 months overdue. Hence NPA across periods are not comparable. 23#24Product suite BAJAJ FINANCE LIMITED 1. Unsecured Working Capital Loans (E) 2. Loans to self employed and Professionals (E) 3. Secured Enterprise Loans 1. Consumer Consumer Durable Loans 2. Digital Product Loans (E) 3. Lifestyle Product Loans 4. Lifecare financing 5. EMI Cards 6. Retail spend financing 7. 2-Wheeler & 3-Wheeler loans 8. Personal Loan Cross-Sell 9. Salaried Personal Loans (E) 10. E-Commerce financing 11. Retailer finance 12. Health EMI Card SME 4. Used-car financing 5. Medical equipment financing 5. Financial Institutions Lending 6. Light Engineering Lending 7. Specialty Chemicals Lending Loans 3. Lifestyle Product Loans 4. Personal Loans Cross Sell 5. Salaried Personal Loans 6. Gold Loans 7. Loans to Professionals Commercial Rural Deposits Payments BAJAJ FINANCE LIMITED Partnerships & Services 1. Loan against securities 1. Consumer Durable 2. IPO financing Loans 1. Retail Term Deposits 1. PPI 1. Life Insurance 2. UPI Distribution 3. BBPS 3. ESOP financing 2. Digital Product 2. Corporate Term Deposits 4. Vendor financing to auto component manufacturers 3. Systematic Deposit Plan 2. General Insurance Distribution 3. Health Insurance Distribution 4. Pocket Insurance (E) 5. RBL Co-Branded Credit Card 6. DBS Co-Branded Credit Card 7. Financial Fitness Report 1. Salaried Home Loans (E) 2. Salaried Loan Against Property 3. Affordable housing finance BAJAJ HOUSING FINANCE LIMITED 1. Loan Against Property 1. Developer Finance 2. Self Employed Home Loans 3. Lease Rental Discounting 2. Commercial Construction Finance 3. Corporate Lease Rental Discounting 1. Loan Against Property 2. Home Loans 3. Secured Enterprise Loans BAJAJ FINANCIAL SECURITIES LIMITED 1. Trading Account (E) 2. Depository Services (E) 3. Margin Trading Financing (E) 4. HNI Broking 7. Mutual Funds (E) 5. Retail Broking (E) 8. Distribution of PMS 6. IPOs and OFS (E) Also available through digital channels 24#25Executive summary – Consolidated Overview • 35-year-old non-bank with a demonstrated track record of profitable growth BAJAJ FINANCE LIMITED ⚫ Diversified financial services company focused on Consumer, Rural, SME, Commercial, Mortgages and Payments Focused on mass affluent client with a strategy to cross sell • Strong focus on deposits acceptance and fee product distribution Present in 3,504 locations with over 133K+ point of sale Customer franchise of 57.57 MM as of 31 March 2022 Amongst the largest new loan acquirers in the country (6.28 MM in Q4 FY22) AUM mix as of 31 March 2022 - Consumer: Rural: SME: Commercial: Mortgages stood at 32% : 10% : 13% : 14% : 31% Core AUM of $ 25,612 MM as of 31 March 2022 and post tax profit of $ 323 MM in Q4 FY22 Capital adequacy ratio (including Tier II capital) of 27.22% as of 31 March 2022. Tier I capital stood at 24.75% Subsidiaries • 100% shareholding in Bajaj Housing Finance Limited Treasury • • 100% shareholding in Bajaj Financial Securities Limited Strategy is to create a balanced mix of wholesale and retail borrowings Borrowings of $ 22,031 MM with a mix of 50% : 28% : 19% : 3% between money markets, banks, deposits & ECB as of 31 March 2022 Credit Quality • Consolidated GNPA and NNPA as of 31 March 2022 stood at 1.60% and 0.68% respectively • Provisioning coverage ratio was 58% as of 31 March 2022 • Provisioning coverage on stage 1 & 2 stood at 134 bps as of 31 March 2022 25#26- Executive summary – Bajaj Finance Limited Overview • Focused on Consumer, Rural, SME, Commercial and Payments businesses • • BAJAJ FINANCE LIMITED Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage Focused on cross sell, customer experience and product & process innovations to create a differentiated & profitable business model • AUM of $ 19,566 MM as of 31 March 2022 • • AUM mix as of 31 March 2022 - Consumer: Rural: SME: Commercial: Mortgage stood at 43% 13% 17% : 18% : 9% Post tax profit of $ 302 MM in Q4 FY22 . Capital adequacy ratio (including Tier II capital) of 27.22% as of 31 March 2022. Tier I capital stood at 24.75% Consumer business Payments Rural business . • · • • • . Present in 1,368 locations with 95.9K+ active distribution points of sale as of 31 March 2022 Largest consumer electronics, digital products & lifestyle products lender in India 2-wheeler financing business disbursed 135.4K accounts in the quarter (de-growth of 16% YOY) 3-wheeler financing business disbursed 20.6K accounts in the quarter (de-growth of 3% YOY) Amongst the largest personal loan lenders in India EMI Card franchise stood at 30 MM cards in force (CIF) as of 31 March 2022 Bajaj Finserv - RBL Bank co-branded credit card CIF stood at 2.75 MM as of 31 March 2022 Bajaj Finserv Mobikwik app has 22.07 MM users as of 31 March 2022 who have linked their EMI card to the wallet Digital app platform has 19.14 MM active users as of 31 March 2022 Highly diversified lender in rural markets offering 10 loan products across consumer and SME business categories Operates with a unique hub and spoke business model. Present in 2,136 towns and villages with 29.8K+ active distribution points of sale as of 31 March 2022 26#27Executive summary - Bajaj Finance Limited SME Business • Commercial business Treasury • Offers unsecured working capital loans to SME and self-employed professionals Secured offerings include enterprise loans against property • Focused on accelerating used car financing business (average ticket size of - $9k) • BAJAJ FINANCE LIMITED Focused on affluent SMEs (average sales of $2 to 3 MM) with established financials & demonstrated borrowing track record • Offers short, medium and long-term financing to mid market corporates • Focused on auto ancillaries, pharma, specialty chemicals, financial institution groups, lease rental discounting and top mid corporate clients in India Strategy is to create a balanced mix of wholesale and retail borrowings with a focus on long term borrowings Borrowings stood at $ 16,405 MM with a mix of 53% : 18% : 25%: 4% between money markets, banks, deposits & ECB as of 31 March 2022 Credit Quality Credit Rating • • . • GNPA and NNPA as of 31 March 2022 stood at 2.02% and 0.85% respectively Provisioning coverage ratio as of 31 March 2022 was 58% Provisioning coverage on stage 1 & 2 stood at 151 bps as of 31 March 2022 Credit rating for long term borrowing is AAA/Stable by CRISIL, ICRA, CARE & India Ratings Credit rating for short term borrowing is A1+ by CRISIL, ICRA & India Ratings Credit rating for FD program is FAAA/Stable by CRISIL & MAAA (Stable) by ICRA • Long term issuer credit rating of BB+/Positive and short-term rating of B by S&P Global ratings 27#28Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Bajaj Housing Finance Limited • A 100% subsidiary of Bajaj Finance Limited, registered with National Housing Bank as a Housing Finance Company • Independent organization design having all dedicated functions and units to drive domain expertise, scalability and operating leverage • Offers full range of mortgage products such as home loans, loan against property and lease rental discounting to salaried & self-employed customers. It also offers construction finance and inventory finance to credit worthy developers. • Focused on mass affluent and above customers (salaried and self employed) • AUM of $ 7,110 MM as of 31 March 2022. Post tax profit of $ 95 MM for FY22 Home Loans Loan Against Property • • • Capital adequacy ratio (including Tier II capital) was 19.72% as of 31 March 2022 Offers home loans to salaried customers for an average ticket size of approximately $ 65K Focused on originating home loans at developer points - B2B home loans business Focused on enabling customers to buy homes along with balance transfer proposition directly as well as through channel partners Currently present across 58 locations in India Home loan mix as of 31 March 2022 - Salaried: Self Employed: Professionals stood at 91%: 4%: 5% Offers loan to mass affluent and above self-employed customers for an average ticket size of $ 76K Focused on offering customized propositions to both self employed and salaried customers directly as well as through channel partners · Currently present across 26 locations in India Rural • • Offers home loans and loans against property to salaried and self-employed customers with an average ticket size of approximately $ 24K for home loans and $ 17K for loan against property Hub and spoke strategy through branch network and ASSC tie ups Currently present across 109 locations in India 88 28#29Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Lease Rental Discounting • Offers loan against lease rentals to high-net-worth individuals and developers on commercial property leased mainly to corporate tenants • Offers construction finance for commercial properties to existing LRD customers Developer Financing • All lease rental discounting transactions are backed by rentals through escrow mechanism • Ticket size of lease rental discounting ranges up to $ 73 MM with an average ticket size of approximately $ 5 MM ● Currently present across 13 locations in India • Offers construction finance and inventory finance mainly to category A and A+ developers in India Average ticket size ranges between $ 3-4 MM • Currently present in 9 locations Credit Quality • GNPA and NNPA, recognized as per extant RBI prudential norms and provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS, as of 31 March 2022 stood at 0.31% and 0.14% respectively Treasury • Credit Rating • Strategy is to create a balanced and sustained mix of borrowings Borrowings stood at $ 5,532 MM with a mix of 59% 41% between banks and money markets as of 31 March 2022 against mix of 61% : 39% as of 31 December 2021 • Credit rating for long term borrowing is AAA/Stable by CRISIL & IND AAA/Stable by India Ratings Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings 29#30· Executive summary – BFSL Bajaj Financial - - BAJAJ FINANCE LIMITED A 100% subsidiary of Bajaj Finance Limited, registered with Securities and Exchange Board of India (SEBI) Securities Limited • Member of Stock Exchanges (NSE and BSE), Depositaries (NSDL & CDSL) and AMFI for distribution of Mutual Funds • Offers Capital Market products - Broking, Depositary services, Margin Trade Financing, Mutual Funds, IPOs and Distribution of PMS • Broking business caters to two different business segments - HNI and Retail • Received issuer rating of AAA from CRISIL • Delivered PAT of $ 1.2 MM in Q4 FY22 and cumulative profit of $ 2.3 MM for FY22 Business oriented towards delivering relationship-based Broking solutions to UHNI & HNI client segment HNI Broking · • Physical branch network across 7 locations - Mumbai, Ahmedabad, Pune, Bangalore, Kolkata, Delhi and Rajkot (New). Added 800+ UHNI/HNI clients in Q4 FY22. Total UHNI/HNI client base stood at 6.3K+ as of 31 March 2022 Retail Broking Capabilities Update • • Added 61K+ trading and demat accounts in Q4 FY22. Total retail client base stood at 325K as of 31 March 2022 Crossed 1,000+ network of partners and affiliates online accounts • Working with 200+ Independent Business Advisor (IBAS) O • Focused on driving client activation of BFSL Platform, monthly activation rate has increased to 55% in the quarter Gone live with below capabilities on web and mobile during Q4 FY22: Thematic Basket: Curated Stock Baskets in partnership with Pickright NCD: UPI Based application for new NCD issues. • Alert & Notification: Provision to set custom alerts for stocks and notification framework for Mobile App Guest Login : App excess for guest users along with virtual trading functionality • Demo Tour: Revamped demo tour to guide customer for usage of our platform • IBA Portal: Platform for IBAs to get all information at one stop 30#31BAJAJ FINANCE LIMITED Lil Section 03 Financial performance 3.1 Financial statement summary - Consolidated Financial statement summary - 3.2 Bajaj Finance Limited 3.3 Financial statement summary - Bajaj Housing Finance Limited 31#32Financial statement summary - Consolidated BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Financials snapshot Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Assets under management 26,327 20,393 29% 26,327 20,393 29% Assets under finance 25,523 19,558 30% 25,523 19,558 30% Interest income 982 805 22% 3,636 3,107 17% Fee and other income 155 103 51% 539 372 45% Net gain on fair value changes on investment 13 7 97% 44 79 (45%) Total Income 1,151 914 26% 4,219 3,558 19% Interest expenses 342 293 17% 1,300 1,255 4% Net Interest Income 809 621 30% 2,919 2,303 27% Operating Expenses 280 214 31% 1,011 708 43% Loan losses and provisions 94 164 (43%) 640 796 (20%) Profit before tax 435 243 79% 1,267 799 59% Profit after tax 323 180 80% 937 589 59% Ratios Operating expenses to Net Interest Income 34.6% 34.5% 34.6% 30.7% Loan loss to average AUF* 0.38% 0.87% 2.84% 4.14% Earning per share - Basic ($) * 0.53 0.30 1.55 0.98 Return on Average Assets* 1.3% 0.9% 4.2% 3.1% Return on Average Equity * 5.7% 3.7% | 17.4% 12.8% 32 *Not annualized#33Financial statement summary - Bajaj Finance Ltd. BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Financials snapshot Q4 FY22 Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y Assets under management 19,566 15,389 27% 19,566 15,389 27% Assets under finance 19,237 15,079 28% 19,237 15,079 28% 1 Interest income 851 705 21% 3,164 2,723 16% I I Fee and other income 154 91 70% I 518 347 49% | Net gain on fair value changes on investment 11 5 101% 35 70 (51%) Total Income 1,016 801 27% 3,716 3,139 18% Interest expenses 260 230 13% 1,010 993 2% I Net Interest Income 756 572 32% 2,706 2,147 26% Operating Expenses 260 202 29% 945 669 41% Loan losses and provisions 89 160 (45%) 616 763 (19%) Profit before tax 408 210 95% 1,145 715 60% Profit after tax 302 155 95% 847 527 61% Ratios Operating expenses to Net Interest Income 34.4% 35.3% I 34.9% 31.2% I | I Loan loss to average AUF* 0.48% 1.09% 3.59% 5.05% I Earning per share - Basic ($) * 0.50 0.26 1.41 0.88 I I Return on Average Assets* 1.6% 1.1% 4.9% 3.5% I I Return on Average Equity * 5.5% 3.3% I 16.3% 11.7% I * Not annualized 33#34Financial statement summary - BHFL Financials snapshot BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Q4 FY22 Q4 FY21 YOY FY22 FY21 YOY Assets under management 7,110 5,183 37% 7,110 5,183 37% Assets under finance 6,198 4,456 39% 6,198 4,456 39% 1 Interest income 128 99 29% 464 384 21% I Fee and other income 11 12 (8%) 30 29 4% I Net gain on fair value changes on investment 2 1 78% 8 8 (2%) Total Income 141 112 26% 502 421 19% Interest expenses Net Interest Income 81 63 28% 287 262 10% I 60 49 22% 215 159 36% Operating Expenses Loan losses and provisions Profit before tax Profit after tax 20 13 50% 63 44 43% 5 4 27% 24 33 (27%) 36 32 11% 128 82 57% 26 24 11% 95 60 57% Ratios | Operating expenses to Net Interest Income 32.5% 26.6% 29.2% 27.7% Loan loss to average AUF* I 0.08% 0.09% 0.45% 0.80% I Earning per share - Basic ($) * 0.005 0.005 0.019 0.012 I Return on Average Assets* I 0.4% 0.6% 1.8% 1.5% I Return on Average Equity * 3.0% 3.0% I 11.1% 7.8% I *Not annualized 34#354.1 4.2 BAJAJ FINANCE LIMITED Conservative leverage standards - Bajaj Finance Limited Resilient business model – Consolidated Section 04 Asset liability management 4.3 4.4 - Behaviouralized ALM – Bajaj Finance Limited Behaviouralized ALM – Bajaj Housing Finance Limited - 4.5 4.6 Disciplined ALM Management - Bajaj Finance Limited Liability mix over the last 10 years Consolidated 35#36Conservative leverage standards 7.0 7.0 7.0 BAJAJ FINANCE LIMITED 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 6.8 16.6 28.34% 28.56% 27.70% 6.2 6.3 16.31 26.96% 27.22% 24.7% 25.0% 25.10% 25.40% 24.90% 24.44% 24.75% 5.4 5.1 20.3% 20.7% 4.7 4.8 4.8 4.9* 19.1% 19.5% 19.7% 21.3% 4.6 18.0% 16.2% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.4% 3.7% 2.9% 3.24% 3.16% 2.80% 2.52% 2.47% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'20 -Tier 1 Capital -Tier 2 Capital Mar'19 -Total Capital Adequacy Ratio (CRAR) Mar'21 Jun'21 * *Standalone leverage is approximately 4X as of 31 March 2022 Capital Adequacy Ratios (CRAR) are on standalone basis Mar '19 onwards numbers are as per Ind AS Sep'21 Dec'21 Mar'22 ―Leverage Ratio Leverage Threshold Denotes point at which the Company initiated its capital raising plan 36#37Resilient business model - Consolidated 46.0% 45.0% 43.1% 41.4% 41.8% BAJAJ FINANCE LIMITED 48.8% 47.5% 46.5% 42.3% 38.1% 35.6% 34.7% 34.6% 35.3% 33.5% 38.4% 35.4% 36.0% 30.7% 33.3% 27.8% 29.9% 28.4% 27.2% 9.85% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.11% 6.77% 6.72% 6.71% 3.6% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% 3.1% 5.1% 2.7% 3.8% 4.2% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar '19 Mar'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 COF -ROA -Fee Income to PBT Opex to NII Mar '19 onwards numbers are as per Ind AS. Jun'21, Sep'21, Dec'21 and Mar'22 numbers of COF are for the quarter 37#381-7 D 8-14 D Behaviouralized ALM as of 31 March 2022 - BFL Particulars BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 85 169 227 148 27 660 318 85 Advances 1,353 212 537 903 884 2,173 3,234 6,211 2,497 1,182 1,687 19,691 2,903 Other inflows 396 11 27 13 93 15 145 5 32 351 1,087 Total Inflows (A) 1,834 392 792 1,064 1,004 2,848 3,379 6,534 2,615 3,220 23,681 Cumulative Total Inflows (B) 1,834 2,225 3,017 4,081 5,085 7,933 11,312 17,846 20,461 23,681 Borrowings 860 449 140 395 815 1,387 3,459 6,524 1,346 1,517 16,891 Capital Reserves and Surplus 5,607 5,607 Other Outflows 643 39 180 200 7 6 15 38 53 1,182 Total Outflows (C) 1,503 488 320 595 822 1,387 3,465 6,539 1,384 7,177 23,681 Cumulative Total Outflows (D) 1,503 1,991 2,311 2,907 3,729 5,116 8,581 15,120 16,504 23,681 Mismatch (E = A - C) 330 (96) 471 469 182 1,461 (86) (5) 1,231 (3,957) Cumulative mismatch (F = B-D) 330 234 706 1,174 1,356 2,817 2,731 2,725 3,957 Cumulative mismatch as % 22% 12% 31% 40% 36% 55% 32% 18% 24% (F/D) Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 1,460 LCR was maintained at 134% as against regulatory requirement of 60% 38#39Behaviouralized ALM as of 31 March 2022 - BHFL BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Particulars 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5-7 Y >7-10 Y >10 Y Total Cash & Investments 92 60 221 Advances 62 43 56 124 119 354 596 1,713 1,086 743 682 619 6,198 Other inflows 27 34 127 69 182 76 139 185 151 48 57 123 1,217 Total Inflows (A) 181 137 182 193 301 499 735 1,898 1,237 791 740 741 7,635 Cumulative Total Inflows (B) 181 318 500 693 995 1,493 2,228 4,126 5,364 6,155 6,894 7,635 Borrowings 102 67 11 126 244 387 917 2,786 815 150 75 240 5,921 Capital Reserves and Surplus 899 899 Other Outflows 66 58 164 65 33 86 4 3 1 333 815 Total Outflows (C) 168 125 176 191 278 474 921 2,789 817 Cumulative Total Outflows (D) 168 293 469 660 938 1,412 2,333 5,121 5,938 150 6,088 409 1,139 7,635 6,497 7,635 Mismatch (E = A - C) 13 12 7 2 23 25 (186) (890) 421 641 331 (397) Cumulative mismatch (F = B-D) 13 25 31 33 57 81 (105) (995) (574) 67 397 Cumulative mismatch as % (F/D) 7% 8% 7% 5% 6% 6% (4%) (19%) (10%) 1% 6% Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 157 39#40Disciplined ALM Management - BFL -Cumulative gap upto 1 month 141% 119% 120% 61% 71% 48% 50% 44% 96% BAJAJ FINANCE LIMITED -Cumulative gap upto 12 month 216% 220% 51% 57% 54% 160% 192% 178% 80% 76% 64% 31% 38% 32% 4% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 40#41Consolidated Liability mix over last 10 years BAJAJ FINANCE LIMITED 3% 4% 4% 4% 4% 3% 5% 5% 8% 13% 4% 3% 10% 5% 12% 7% 6% 7% 7% 8% 13% 3% 4% 3% 3% 3% 2% 2% 7% 3% 6% 4% 33% 38% 35% 25% 36% 35% 36% 37% 38% 40% 36% 40% 45% 36% 31% 30% 29% 29% 28% 58% 54% 48% 34% 53% 35% 25% 20% 21% 20% 17% 20% 19% 12% 13% 1% 4% 6% 8% T Mar'15 Mar'16 Mar'17 ■Deposits ■Bank Loans (incl. CC/OD/WCDL) Mar'18 Mar'19 Mar'20 Mar'21 NCD Subordinate Debt Jun'21 ■Short term Borrowings Sep'21 Dec'21 Mar'22 ECB 41 0% Mar'13 Mar'14#42Empty#43Customer franchise Q4 FY21 48.57 MM 38.50 MM Total Franchise Credit segment filter BAJAJ FINANCE LIMITED 04 FY22 Q3 FY22 57.57 MM 55.36 MM 45.21 MM 37.10 MM Overall Cross sell franchise 43.62 MM 32.63 MM Non delinquent customers 38.60 MM Cross sell franchise 26.89 MM (55.3%)* 32.77 MM (56.9%)* Customer Franchise addition Q3 FY21 43.45 MM 41.87 MM 37.23 MM 31.26 MM (56.5%)* 2.19 MM Q4 FY21 2.26 MM *Represents cross sell franchise as a % of total franchise Q1 FY22 1.88 MM Q2 FY22 2.35 MM Q3 FY22 2.56 MM Q4 FY22 2.21 MM 43#44Geographic presence Map not to scale Geographic Presence BAJAJ FINANCE LIMITED 31 Mar 31 Mar 31 Mar 31 Mar 31 Dec 31 Mar 2018 2019 2020 2021 2021 2022 Urban lending branches 730 927 1,035 1,298 1,368 1,368 Rural lending branches 602 903 1,357 1,690 2,055 2,136 Total Bajaj Finance presence 1,332 1,830 2,392 2,988 3,423 3,504 44#45Strong distribution reach BAJAJ FINANCE LIMITED Active distribution Consumer durable stores - Urban 31 Mar 2018 31 Mar 2019 31 Mar 2020 31 Mar 2021 31 Dec 2021 31 Mar 2022 15,500+ 20,400+ 24,200+ 26,400+ 29,500+ 30,600+ Consumer durable stores - Rural 8,200+ 14,500+ 19,600+ 24,000+ 27,900+ 29,800+ Digital product stores 15,900+ 22,500+ 26,400+ 23,800+ 28,800+ 29,500+ Lifestyle retail stores 6,000+ 7,700+ 9,500+ 9,800+ 10,800+ 11,000+ EMI card - retail spends stores 12,100+ 19,100+ 24,300+ 14,300+ 17,800+ 18,800+ Bajaj Auto dealers, sub-dealerships and 3,900+ 4,600+ 5,500+ 5,900+ 6,000+ 6,000+ ASSC Direct Sales Agents/Independent Financial Agents 2,100+ 2,800+ 4,900+ 6,100+ 7,500+ 7,500+ Overall active distribution network 64,300+ 91,700+ 1,14,400+ 1,10,300+ 1,28,300+ 1,33,200+ 45#46Section 06 Business segment wise AUM BAJAJ FINANCE LIMITED 46#47Business segment wise AUM - Consolidated BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Composition Assets Under Management Consolidated as of BFL as of 31 March 2022 BHFL as of 31 March Consolidated Growth as of Composition as of as of YOY 31 March 2021 2022 31 March 2022 31 March 2021 31 March 2022 Auto Finance Business 1,615 1,359 1,359 (16%) 8% 5% Sales Finance Business 1,537 1,997 1,997 30% 8% 8% Consumer B2C Business 4,060 4,974 196 5,170 27% 20% 20% Rural Sales Finance Business 384 551 I 551 43% 2% 2% Rural B2C Business 1,576 2,040 I 2,040 29% 8% 8% SME Lending Business 2,696 3,319 18 3,331 24% 13% 13% Securities Lending Business 785 1,309 1,405 79% 4% 5% IPO Financing Business 22 715 I 715 ΝΑ ΝΑ 2% Commercial Lending Business 1,106 1,533 1,533 39% 5% 6% Mortgages Business 6,612 1,769 6,896 8,226 24% 32% 31% Total 20,393 19,566 7,110 26,327 29% Co-brand Credit Card - CIF 2.10 MM 2.75 MM EMI Card - CIF 23.80 MM 30.0 MM Co-brand Wallets 19.80 MM 22.10 MM 47#48BAJAJ FINANCE LIMITED Section 07 Update on credit quality 7.1 Provisioning Coverage - Consolidated 7.2 ECL summary - Consolidated 7.3 ECL summary - Bajaj Housing Finance Limited 7.4 Stagewise ECL provisioning 7.5 Portfolio credit quality - Consolidated 48#49Provisioning Coverage - Consolidated BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 AUM PCR GNPA % NNPA % Particulars 31 Mar 22 GNPA NNPA (%) 30 Sep 21 31 Dec 21 31 Mar 22 30 Sep 21 31 Dec 21 31 Mar 22 Auto Finance Business 1,359 165 83 50% 16.00% 11.04% 11.01% 9.25% 5.84% 5.83% Sales Finance Business 1,997 58 27 54% 0.64% 0.30% 2.81%* 0.13% 0.06% 1.32%* Consumer B2C Business 5,170 48 12 75% 2.11% 1.33% 0.95% 0.54% 0.34% 0.24% Rural Sales Finance Business 551 1 84% 1.09% 0.24% 0.16% 0.21% 0.05% 0.02% Rural B2C Business 2,040 25* ** 8* ** 69%** 3.09% 2.55% 1.19%** 1.28% 1.42% 0.37%** SME Lending Business 3,331 49 12 75% 1.69% 1.39% 1.43% 0.43% 0.35% 0.36% Securities Lending Business 2,120 18% 0.02% 0.06% 0.01% 0.02% 0.05% 0.01% Commercial Lending Business 1,533 6 3 53% 0.45% 0.42% 0.38% 0.29% 0.26% 0.18% Mortgages Business 8,226 66 31 53% 0.97% 0.95% 0.86% 0.59% 0.52% 0.40% Total 26,327 418 175 58% 2.45% 1.73% 1.60% 1.10% 0.78% 0.68% * In Q4, GNPA & NNPA for Sales Finance business is elevated on account of one large commercial B2B account. Adjusted for it, GNPA & NNPA are 0.25% & 0.05% **Includes Gold loan GNPA of $ 2.1 MM and NNPA of $ 2.0 MM. Net of Gold loan, the GNPA, NNPA and PCR are 1.25%, 0.32% and 75% 49#50ECL summary - Consolidated BAJAJ FINANCE LIMITED Asset categorization 31 Mar 2021 30 Jun 2021 30 Sep 2021 31 Dec 2021 31 Mar 2022 Stage 1 & 2 (represents standard assets) 98.21% 97.04% 97.55% 98.27% Stage 3 (classified as NPA) 1.79% 2.96% 2.45% 1.73% 98.40% 1.60% Stage 3 (not classified as NPA) Summary of stage wise assets and provision for impairment allowance Assets and impairment allowance 31 Mar 2021 30 Jun 2021 Gross Stage 1 & 2 assets* (A) 19,984 20,692 30 Sep 2021 21,805 31 Dec 2021 23,485 ECL Provision Stage 1 & 2 (B) 362 361 338 366 31 Mar 2022 25,693 345 Net Stage 1 & 2 assets (C = A-B) 19,622 20,331 21,466 23,119 25,348 ECL Provision % Stage 1 & 2 assets (D = 1.81% 1.74% 1.55% 1.56% 1.34% B/A) Gross Stage 3 assets@ (E) 364 632 547 414 418 ECL Provision Stage 3 (F) 213 324 304 230 242 Net Stage 3 assets (G = E-F) 151 308 243 184 175 Coverage Ratio % Stage 3 assets (H= F/E) 58% 51% 55% 56% 58% Overall coverage ratio 2.82% 3.21% 2.87% 2.50% 2.25% *Gross Stage 1 & 2 assets represent loans balance as per Ind AS after adjusting for the impact of amortisation of fees earned and acquisition cost incurred including other assets like security deposits, advance to dealer, receivable from related parties, capital advances etc @ Gross Stage 3 assets represents loans balance as per Ind AS after adjusting for the impact of (i) amortisation of fees earned and acquisition cost incurred and (ii) overdue interest considered recoverable under Ind AS and other receivables considered as non-performing as at the end of respective periods. 50 0#51ECL summary - Bajaj Housing Finance Limited BAJAJ FINANCE LIMITED Asset categorization 31 Mar 2021 30 Jun 2021 30 Sep 2021 31 Dec 2021 Stage 1 & 2 (represents standard assets) Stage 3 (represents GNPA) 99.65% 0.35% 99.72% 99.65% 99.65% 31 Mar 2022 99.69% 0.28% 0.35% 0.35% 0.31% Summary of stage wise assets and provision for impairment allowance Assets and impairment allowance 31 Mar 2021 30 Jun 2021 Gross Stage 1 & 2 assets* (A) 4,533 4,850 30 Sep 2021 5,319 31 Dec 2021 5,835 31 Mar 2022 6,240 ECL Provision Stage 1 & 2 (B) 41 42 44 48 52 Net Stage 1 & 2 assets (C = A-B) 4,492 4,808 5,275 5,787 6,189 ECL Provision % Stage 1 & 2 assets (D = 0.91% 0.87% 0.83% 0.82% 0.83% B/A) Gross Stage 3 assets@ (E) 15.9 13.7 18.9 20.3 19.5 ECL Provision Stage 3 (F) 6.0 4.9 7.5 10.0 10.6 Net Stage 3 assets (G = E-F) 9.9 8.8 11.5 10.3 8.9 Coverage Ratio % Stage 3 assets (H= F/E) 38% 36% 40% 49% 54% Overall coverage ratio 1.04% 0.97% 0.96% 0.99% 1.00% *Gross Stage 1 & 2 assets represent loans balance as per Ind AS after adjusting for the impact of amortisation of fees earned and acquisition cost incurred including other assets like security deposits, receivable from related parties, capital advances etc @ Gross Stage 3 assets represents loans balance as per Ind AS after adjusting for the impact of (i) amortisation of fees earned and acquisition cost incurred and (ii) overdue interest considered recoverable under Ind AS and other receivables considered as non-performing as at the end of respective periods. 51#52Stagewise ECL provisioning as of 31 March 2022 BAJAJ FINANCE LIMITED Values in MM USD 1 - INR 75 Gross Assets Receivable ECL Provision PCR % Stage 2 Stage 2 Stage 2 Stage 1 Stage 3 Stage 1 Stage 3 Stage 1 Stage 3 OTR* Normal OTR* Normal OTR* Normal Auto Finance Business 1,177 158 165 Sales Finance Business 1,977 15 58 15 11 19 40 83 1.6% 25.0% 50.0% 7 31 0.7% 11.6% 48.2% 53.6% Consumer B2C Business 4,926 3 98 48 60 1 34 36 1.2% 20.1% 34.9% 74.9% Rural Sales Finance Business 551 3 1 2 2 1 0.4% 53.6% 84.4% Rural B2C Business 2,020 53 SME Lending Business 3,309 50 53 36 49 25 25 5 25 16 17 1.2% 23.5% 29.9% 68.8% 5 35 1 13 37 1.1% 20.5% 35.9% 75.2% Securities Lending Business 2,149 1 I 1 I I I 0.0% 0.1% 18.3% Commercial Lending Business 1,533 6 4 3 0.2% 0.2% 53.0% Mortgages 7,536 88 55 66 40 18 13 35 0.5% 20.0% 24.4% 53.3% Total as of 31 Mar 2022 25,178 96 419 418 201 19 125 242 0.8% 20.1% 29.8% 58.0% Total as of 31 Dec 2021 22,779 194 513 414 182 42 142 230 0.8% 21.8% 27.7% 55.6% Total as of 31 Dec 2019 18,188 477 314 103 90 178 0.6% 18.8% 56.7% OTR - One time Restructuring Stage 1 - Loan accounts up to 1 DPD | Stage 2 -Loan accounts in-between 2-90 DPD, including weak accounts & OTR accounts without any overdue | Stage 3 - Customer classified as NPA as per RBI guidelines 2 52#533rd Bucket Portfolio credit quality - Consolidated Consumer Durable & Lifestyle Stage ■1st Bucket 2nd Bucket BAJAJ FINANCE LIMITED Two & three-wheeler 1 98.55% 98.65% 92.10% 98.92% 99.52% 4th Bucket 99.05% 99.58% 5th Bucket 99.72% 97.89% Stage 1 1st Bucket 2nd Bucket 85.81% 86.00% 72.62% 76.15% 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 78.02% 71.14% 77.76% 82.86% 85.19% 2 0.96% 0.89% 7.80% 0.78% 0.25% 0.69% 0.27% 0.22% 0.25% 2 11.69% 11.27% 25.19% 17.59% 17.37% 16.35% 12.67% 11.01% 8.74% 9% 35% 8% 7% 6% 5% 4% 3% 2% 1% 0% I 30% 25% 20% 15% 10% 5% 0% Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Digital product B2C loans Stage ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1 98.24% 98.49% 88.74% 98.78% 99.27% 98.71% 99.56% 99.74% 99.66% 98.02% 98.00% 90.52% 95.44% 96.91% 95.15% 97.37% 98.22% 98.48% 1 2 1.08% 0.97% 11.14% 0.88% 0.34% 0.95% 0.27% 0.20% 0.30% 2 1.39% 1.43% 9.03% 3.35% 2.60% 3.78% 2.08% 1.43% 1.27% 12% 10% 9% 10% 8% 2% 0% 6% 4% ..L. 8% 7% 6% 5% 4% 3% 2% 1% 0% Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Dec'19 Feb'20 Sep'20 Dec'20 *For March 2022 quarter, Consumer durable and Lifestyle portfolio Stage 1 is 99.64% adjusted for one large B2B commercial lending account. Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 • Portfolio credit quality after adjusting ECL provisions 53#54Portfolio credit quality - Consolidated Business & professional loans BAJAJ FINANCE LIMITED Rural Lending B2B Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket ■5th Bucket Stage ■1st Bucket 2nd Bucket 1 98.35% 98.27% 93.43% 97.19% 98.50% 97.30% 98.51% 98.73% 98.93% 1 99.21% 99.33% 92.84% 99.21% 3rd Bucket 99.75% 98.89% 4th Bucket ■5th Bucket 99.60% 99.82% 99.79% 2 1.12% 1.13% 6.10% 1.92% 1.18% 1.97% 1.04% 0.90% 0.69% 2 0.36% 0.32% 7.11% 0.52% 0.10% 0.80% 0.18% 0.14% 0.18% 7% 8% 6% 7% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Rural lending B2C Stage 1 ■1st Bucket 98.32% 98.32% 2nd Bucket 90.94% 94.75% ■ 3rd Bucket 97.67% 4th Bucket 95.47% 94.49% 5th Bucket 95.83% Loan against property Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket ■5+ Bucket 97.79% 1 97.06% 97.06% 96.93% 97.31% 98.47% 96.23% 97.15% 97.88% 98.56% 2 1.13% 1.09% 8.29% 3.44% 1.83% 3.59% 4.19% 2.73% 1.83% 2 0.27% 0.30% 2.36% 1.78% 0.50% 2.69% 1.76% 1.29% 0.79% 4.0% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Dec'19 Feb'20 • Portfolio credit quality after adjusting ECL provisions 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 54#55• Portfolio credit quality - Consolidated Stage Home loans 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 99.63% 99.60% 98.31% 98.67% 99.56% 98.31% 99.05% 99.07% 99.45% 2 0.15% 0.11% 1.40% 1.03% 0.24% 1.36% 0.69% 0.62% 0.28% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Jun'21 Sept'21 Dec'21 Mar'22 Commercial lending BAJAJ FINANCE LIMITED Commercial lending business portfolio is 99.82% current. There are two NPA accounts of $ 6 MM, of which $ 3 MM has been provided for. Securities lending Securities lending portfolio is almost 100% current. Portfolio credit quality after adjusting ECL provisions 55 55#56BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED Q4 FY22 Investor Presentation Thank You#57Annexure BAJAJ FINANCE LIMITED#58BAJAJ FINANCE LIMITED As a Company, we believe that the purpose of any business transformation is a means to an end. It should result in stronger growth momentum, superior customer experience, better cross sell, lower risk and/or improved operating efficiencies. We are pursuing business transformation singularly with that objective... 58#59At the outset, "All business transformation takes time, team and technology." It's been 15 months since we started phase 1 of business transformation project. Due to wave 2, it got delayed by 3 months. Phase 1 of the digital platform has now gone live with a staggered release methodology. The Company plans to transition all consumers to the new digital platform from February onwards. Next 2 slides cover details of the new digital platform and the way forward... 59 9#60‘3-in-1′ digital platform – Phase 1 feature set Payments Network Marketplace & Proprietary Apps UPI CD Network No cost EMI Marketplace 3-in-1 No Cost EMI Consumer Durable Financial Services. Mobile Rewards Integrated Voice and Marketing Cloud Productivity Apps . Lifestyle Offers Wallet EMI Card DPF Network REMI Network Insurance Marketplace Unsecured Loans Mortgage Loans Personal Loans(2) Salaried PL-Lead Home Loan . LAP Earn For "Payment transactions" Cashbacks Customer Data Platform Sales One App LSF Network Credit Card Investment Marketplace B BAJAJ FINSERV 6-in-1 Payment Checkout Bill Payment E-Com Network Coaching Network LCF Network Health RX Other Secured SME/Prof. Lending Cards Gold Loan • LAS Professional Loans SME Loans EMI Card RBL Bank Card • Used Car • Medical equipment • Vouchers Bajaj Coins Convert to Cash Centralized Offer Repository Multi Channel Orchestration Debt management One App Information EMI, Credit Card Statement Documents • Loan Info • • Card Limit Loan Statement • Invoice Services Deposit Info Card Status Repay Schedule • EMI Charge Slip • Flexi Loan Info • • Card Block/Unblock FD Statement • App. Form • Mandate Services • • PIN Change NOC • T & C • Mutual Fund • Cert. of Insurance • Agreement Gold receipt • Form 15G Engagement Stack (31) Travel (4) Entertainment (3) Food (3) Utilities(4) Repayment Overdue, Advance Payments . Prepayments • Drawdown Burn Deposits Fixed Deposit Demat and Broking • Systematic Dep Plan (SDP) Bill Payment Multi Dialler Orchestration Fee based Services Fin fitness report Credit health report Voucher Purchase Cloud Telephony Infra for Distributed Sales Workforce Partner One App 1.0 FD & SDP Profile Update Calculators FD Details • PAN Update • EMI Calculator • TDS Waiver Mobile Update • Flexi Calculator • Nominee addition • • Email ID Update Address Update DOB Update • Loan Eligibility • FD Calculator Shopping(6) Health & Wellness(4) Education(1) Other Networks(6)#61‘3-in-1' digital platform – Phase 1 enablers Core Components (20) • Stimulation Notification Engine Nudges Personalization Channels Data Web Data Mobile IVR Dialler Offers and Promotions Search • Dynamic Banners • Search Offers • Content Streams • Wishlist APIS Core Platform . Email Loan/Deposit Origination Platform Loan/Deposit Sourcing APIs Journey Workflows Journey Business Rules Decision Engine High Availability (HA) Infrastructure Core Infrastructure Digital & Data Infrastructure Data Lake • B BAJAJ FINSERV Service Sales Engagement . Raise a Request FAQ Document Centre 5 Mins Call Back Track and Resume Application • Social Share • • • NPS/Feedback QR • In-App Programs Utilities Locate Us- Maps • Calculators • Expense Manager • Structured Customer Demographics Banking & Collections Unstructured • Cookies Loan & Other Information • Consent based SMS data • Click Streams Transactions 400+ Digital APIs Loan/Deposit Booking Platform Consent based App Data Device Info Appography Contacts Info • Network Info Debt Management Platform Loan/Deposit Service Management Platform Service APIs for Loans Repayment APIs Service APIs for Deposits • Loan Booking APIs • • Loan Disbursement APIs • • Deposit Booking APIs Overdue Payment APIs Advance Payment APIs Loan Settlement APIs Disaster Recovery (DR) Infrastructure Near DR Infrastructure Enterprise Datawarehouse Change Data Mgmt APIs / Micro Services Cyber Security Onboarded 580+ Laterals and Fresh hires in last 18 Months in multiple domains New Talent Onboarded 120+ UI/UX, Content Management, & Digital Domain specialist 120+ Payment Domain Resources There are 15 stacks and 55 features and components. 240+ Engineering Resources Kubernetes Data Security TechOps 60+ Data Resources 40+ Core Platform & Infra Resources#62Previous 2 slides have covered the phase 1 of transformation journey. Phase 1 was focused on creating a strong, stable and scalable foundation. Phase 2 will focus on new to Bajaj customer journeys, introducing new features and functionalities, augmenting current feature sets and nuanced journeys for existing customers for each line of business to take them closer and closer to DIY... 62 2#63Digital app platform - Phase 2 feature set B Payments UPI Wallet EMI Card Credit Card 6-in-1 Payment Checkout Bill Payment POS terminals 6-in-1 Check Out for Partners BAJAJ FINSERV QR Based P2M Transaction Network CD Network DPF Network REMI Network LSF Network LCF Network E-Com Network Coaching Network P2M Network QR Network Marketplace & Proprietary Apps No Cost EMI No cost EMI Marketplace Insurance Marketplace Investment Marketplace 2-Wheeler Marketplace Health RX Doctor RX Demat and Broking Unsecured Lending Mortgage Other Secured 3-in-1 Financial Services. • Cons. Durable- NTB • Personal Loans (9) Home Loan Gold Loan(3) LAS SME/Prof. Lending • Prof. Loans (5) Cards Mobile- NTB • Salaried PL (15) • • Lifestyle- NTB LAP 2-Wheeler & Used • Short Term Wallet Loan Secured Enterprise Locar SME Loans (2) Medical equipment EMI Card Health Card RBL Bank Card DBS Bank Card • Deposits Fixed Deposits (6) SDP(2) Fee based Services . Credit health report 2.0 GBS . Loan Against FD Earn Burn Rewards • Offers • Cashbacks Vouchers Bajaj Coins • Convert to Cash • Bill Payment . Voucher Purchase Merchant Sponsored Vouchers Integrated Voice and Marketing Cloud Productivity Apps • Customer Data Centralized Offer Multi Channel Platform Repository Sales One App Enhanced Engage & Compliance Frames Information Orchestration Multi Dialler Orchestration Debt management One App Compliance, Legal & Repo Mgmt. Statement Documents Loan Sourcing, Dashboards Repayments One View for Backend Agents Cloud Telephony Infra for Distributed Sales Workforce Voice Call Governance Partner One App 2.0 Merchant One App Onboarding, Payment Dashboards EMI, Credit Card FD & SDP Profile Update • Loan Info • Limit & Enhancement • Loan Stat. • Invoice • OD & Adv Pay FD Details • PAN & DOB • Services Deposit Info • Card Status • Repay Schedule • LTS & Charge Slip • • Flexi Loan Info • Card Block/Unblock • FD Statement • App. Form Prepay, DD & FC GL-Part/Full Rel • Nominee addition • • Renew FD • Mobile & Email ID Address Mandate Services • PIN Change • NOC • T & C • EMI Vault • TDS Waiver . Bank Details Mutual Fund • EMI Card Trx history • COI (10) Sanc Letter & Agmt • Assisted Chat EMI Card accepted check • • GDR & FDR Form 15G Cash Pick-up 2.0 Smart Debit 2.0 Pre-Maturity, Start Stop Re-KYC SDP Engagement Stack(58) Health & Fitness Travel (6) Entertainment(5) Food(11) Utilities(4) Shopping (18) Gaming (10) (4) Education(1) Other Networks (7) Donate(2) Calculators EMI & Flexi Loan Eligibility Shares + MF cal FD, SDP & GBS Mortgage Cal GST Cal 30+ Engagement Apps#64Digital app platform - Phase 2 enablers · Core Components (23) • Stimulation Notification Engine Nudges Offers and Promotions Search • Search . Dynamic Banners • Content Streams Offers • • Next Best Action . Wishlist & Cart Geo & Context Based Search • Personalization • Segmented Banners Structured Service Sales • Raise a Request 5 Mins Call Back • FAQ • Track and Resume Document Centre Assisted Chat Application Engagement Social Share NPS/Feedback In-App Programs Personalized App Features • • BAJAJ B FINSERV Utilities Locate Us- Maps QR Calculators • Expense Manager PODS (4) Data Channels Data Web Mobile Unstructured Cookies Consent based App Data • Device Info • Customer Demographics Loan & Other Information Consent based SMS Data • Appography IVR • Banking & Collections Txns. Consent based Email Data Click Streams • Contacts Info • Network Info • Dialler Email • Financial Services Journey Heatmaps External - Bureau, Acc Agg, etc. Location & Phone State APIs 600+ Digital APIs Core Platform Core Infrastructure Digital & Data Infrastructure Loan/Deposit Origination Platform Loan/Deposit Sourcing APIs 2.0 Journey Workflows 2.0 Journey Business Rules 2.0 Decision Engine High Availability (HA) Infrastructure Data Lake • Loan Booking APIs . Deposit Booking APIs Disaster Recovery(DR) Infrastructure Loan/ Deposit Booking Platform . Loan Disbursement APIs • Debt Management Platform Overdue Payment APIs Advance Payment APIs Loan Settlement APIs Near DR Infrastructure Cyber Security Enterprise Change Data Mgmt APIs / Micro Services Kubernetes New Talent Onboarded Contextual Data • Personal Events • External Events Loan/Deposit Service Management Platform Service APIs for Loans 2.0 Repayment APIs • Service APIs for Deposits Data Security TechOps • 150+ UI/UX, Content Management, & Digital Domain specialist Datawarehouse Projected Cumulative addition of 1400+ Lateral and Fresh hires in Phase 1 and 2 of Digital Transformation Journey 400+ Payment Domain Resources 625+ Engineering Resources 130+ Data Resources 100+ Core Platform & Infra Resources There are 15 stacks and 117 features and components.#65BAJAJ FINANCE LIMITED The Company plans to deliver Phase 2 in 8 to 9 months subject to no major disruption as a result of current & new Covid waves. Unlike phase 1, phase 2 will get delivered in 3-4 sprints. The first update on phase 2 will be provided in July quarter results. During this period, the Company remains committed to delivering its long-term guidance metrics... 5 65#66Disclaimer BAJAJ FINANCE LIMITED This presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the "Company" or "Bajaj Finance". By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or does not intend to constitute or form part of any offer or invitation or inducement to sell, or any solicitation of any offer or recommendation to purchase, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. These materials are being given solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. The distribution of these materials in certain jurisdictions may be restricted by law and persons into whose possession these materials comes should inform themselves about and observe any such restrictions. Certain statements contained in this presentation that are not statements of historical fact constitute "forward-looking statements." You can generally identify forward-looking statements by terminology such as "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "objective", "goal", "plan", "potential", "project", "pursue", "shall”, “should”, "will", "would", or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) material changes in the regulations governing the Company's businesses; (b) the Company's ability to comply with the capital adequacy norms prescribed by the RBI; (c) decreases in the value of the Company's collateral or delays in enforcing the Company's collateral upon default by borrowers on their obligations to the Company; (d) the Company's ability to control the level of NPAs in the Company's portfolio effectively; (e) internal or external fraud, operational errors, systems malfunctions, or cyber security incidents; (f) volatility in interest rates and other market conditions; and (g) any adverse changes to the Indian economy. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The information contained in this presentation is only current as of its date and the Company does not undertake any obligation to update the information as a result of new information, future events or otherwise. 66