#1Muthoot Finance INDIA'S #1 MOST TRUSTED FINANCIAL SERVICES BRAND 2023# Great Place To WorkⓇ Certified DEC 2022 - DEC 2023 INDIA TM Financial Results Q4 FY 2023 March 2023 Muthoot Family - 800 years of Business Legacy#2Ⓡ Muthoot Finance SAFE HARBOUR STATEMENT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. Any person/party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation. 1#3THE GROUP Diversified business of the Group Muthoot Finance Primary Business Shareholding of holding company (%) Muthoot Finance Limited Muthoot Homefin (India) Limited Gold Loans Affordable Housing Finance Holding Company 100.00 Belstar Microfinance Limited Muthoot Money Limited Asia Asset Finance PLC Microfinance Vehicle Finance Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Listed Diversified NBFC in Sri Lanka Insurance Broking Muthoot Trustee Private Limited 56.97 100.00 72.92 100.00 100.00 100.00 2#4Performance Highlights Q4 FY23 Highest-ever Quarterly Gold Loan Disbursement: 51,850 Crores All-time high Gold Loan Growth in any Q4: 5,051 Crores All-time high Interest Collection Fol in any Quarter: 2,677 Crores Increase in Consolidated Profit After Tax: 8% QoQ at 1,009 Crores Total Branches as on March 31, 20235,858 with 259 new branches opened during the year Pa Muthoot Finance 3#5Pa Muthoot Finance GOLD LOAN As on March 31, 2023 * 61,875 Crore As on December 31, 2022 * 56,824 Crore GOLD LOAN GROWTH IN Q4 FY23 * 5,051 Crore ALL-TIME HIGH GROWTH IN ANY Q4 4#6Pa Muthoot Finance GOLD LOAN DISBURSEMENT In Q4 FY23 51,850 Crore HIGHEST EVER QUARTERLY GOLD LOAN DISBURSEMENT * 51,850 Crore ALL-TIME HIGH DISBURSEMENT IN ANY QUARTER 5#7INTEREST COLLECTION Pe In Q4 FY23 * 2,677 Crore % % % Pa Muthoot Finance % ALL-TIME HIGH COLLECTION IN ANY Q4 CO 6#8TOTAL NUMBER OF BRANCHES Pa Muthoot Finance As on March 31, 2023 5,838 259 NEW BRANCHES OPENED 7#9Pa Muthoot Finance In addition to Mr. Amitabh Bachchan, we also welcome Mrs. Madhuri Dixit as our Brand Ambassador 8#10Pa Muthoot Finance Muthoot Finance awarded "India's Most Trusted Financial Services Brand 2023" for 7th Year in a row by TRA's Brand Trust Report TRA's BRAND TRUST REPORT India Study 2023 Ranks MUTHOOT FINANCE India's Most Trusted Financial Services Brand in a study covering 8000 brands across 16 cities N. Chandramouli CEO Trust Research Advisory TRA's BRAND TRUST REPORT India Study 2023 Power of Trust RA Quest for Truth COMNISCIENT Group Initiative INDIA'S MOST TRUSTED Financial Services Brand 2023 Da Muthoot Finance 6#11Pa Muthoot Finance Muthoot Finance certified as a "Great Place to Work" by the Great Place to Work Institute for 2nd Year in a row in Dec'22 Great Place To WorkⓇ Certified DEC 2022 - DEC 2023 INDIA TM 10 10#12THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance YoY FY 2023 FY 2022 (%) 5,838 5,579 5 Consolidated Loan Assets Under Management* of the Group (in million) 714,968 644,939 11 Consolidated Profit of the Group (in million) 36,698 40,313 (9) Contribution in the Consolidated Loan Assets Under Management* of the Group Muthoot Finance (%) Subsidiaries (%) 800 88 90 12 10 Contribution in the Consolidated Profit of the Group Muthoot Finance (%) 94 98 88 6 2 Subsidiaries (%) *Principal amount of Loan assets 11#13THE GROUP Loan Assets Under Management* of the Group Mar-23 Ⓡ Muthoot Finance (in millions) Mar-22 YoY (%) Muthoot Finance Limited 632,098 580,532 9 Muthoot Homefin (India) Limited 14,381 14,699 (2) Belstar Microfinance Limited 61,925 43,658 42 Muthoot Money Limited 3,870 2,071 87 Asia Asset Finance PLC 5,294 4,459 19 Less: Intra-Group Loan Assets 2,600 480 442 Total 714,968 644,939 11 *Principal amount of Loan assets 12#14THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance (in millions) FY 2023 FY 2022 34,735 39,543 Muthoot Homefin (India) Limited 104 84 Muthoot Insurance Brokers Private Limited 464 276 Belstar Microfinance Limited 1,303 451 Muthoot Money Limited Asia Asset Finance PLC 2 (66) 70 43 Muthoot Asset Management Private Limited 46 23 Muthoot Trustee Private Limited 0.27 0.17 13#15Ⓡ Muthoot Finance (in millions) Mar-23 Mar-22 Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Cash and cash equivalents Bank Balance other than above Derivative Financial Instruments Trade Receivables Loans Investments Other Financial Assets Non-Financial Assets 77,702 100,358 2,655 2,791 605 99 70 705,544 645,276 5,457 5,233 3,453 2,807 Current Tax Assets (Net) 475 110 Defered Tax Assets (Net) 641 1,090 Investment Property 82 93 Property, Plant and Equipment 3,272 2,817 Right to use Asset 142 148 Captial Work-In-Progress 674 523 Goodwill 300 300 Other Intangible Assets 59 59 Intangible assets under development Other Non Financial Assets 934 883 Total Assets 801,489 763,165 14#16Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Mar-23 Mar-22 LIABILITIES Financial Liabilities Derivative Financial Instruments 1,922 4,798 Trade Payables 1,341 1,204 Other Payables 817 368 Debt Securities 146,046 131,740 Borrowings(other than Debt securities) 405,975 408,553 Deposits 3,315 Subordinated Liabilities 2,546 2,235 2,997 Lease Liability 155 160 Other Financial Liabilities 12,576 13,323 Non-Financial Liabilities Current Tax Liabilities(net) 812 1,418 Provisions Deferred Tax Liabilities(net) Other Non-Financial Liabilities EQUITY Equity attributable to equity owners of the company 216,658 187,857 Non-Controlling Interest 4,871 3,522 Total Liabilities and Equity 801,489 763,165 15 3,619 3,680 153 166 683 1,142#17Ⓡ Consolidated Financial Results Particulars Income Interest Income Muthoot Finance (in millions) YOY Q4 FY Q3 FY Q2 FY Q1 FY FY 2023 FY 2022 (%) 2023 2023 2023 2023 115,555 119,252 (3) 31,341 29,335 27,579 27,301 Service Charges 1,371 1,121 22 373 410 314 274 Sale of Services 113 140 (19) 46 15 30 22 Other Income 773 526 47 235 209 170 160 Income other than above 1,937 1,343 44 988 336 326 286 Total Income 119,750 122,382 (2) 32,984 30,305 28,419 28,043 Expenses Finance Cost 42,092 42,559 (1) 10,912 10,466 10,205 10,509 Impairment of Financial Instruments 2,420 3,842 (37) 878 1,203 438 (99) Net Loss on derecognition of financial 35 (1) (20) 20 instruments Employee Benefit Expenses 14,883 12,368 20 4,502 3,512 3,422 3,447 Depreciation, Amortisation and 782 700 12 231 196 184 171 Impairment Other Expenses 10,346 8,776 18 2,912 2,436 2,122 2,876 Total Expenses Profit before tax 70,522 68,280 3 19,435 17,813 16,351 16,924 49,228 54,102 (9) 13,549 12,492 12,068 11,119 Tax expense 12,530 13,789 (9) 3,456 3,153 3,052 2,870 Profit after Tax 36,698 40,313 (9) 10,093 9,339 9,016 8,250 Earnings per share -Basic (*) 89.99 100.10 (10) 24.25 23.11 22.22 20.41 Earnings per share -Diluted (*) 89.98 100.05 (10) 24.25 23.11 22.22 20.40 16#18Ⓡ MUTHOOT FINANCE: DRIVING INCLUSIVE GROWTH ○ India's largest gold financing company (by loan portfolio) Muthoot Finance Trusted pan-India brand in the gold loans sector; revolutionised India's gold banking 。 Our intervention has empowered millions of people across the social pyramid Multiple service offerings CORE SERVICE OTHER SERVICES Gold Loans Money Transfer Services Collection Services Business loans Personal Loans 17#19MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 180 tonnes Gold jewellery kept as security 4,700+ Pan-India branches 27,000+ Team members 632,098 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day (As of March 31, 2023) 18#20SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 22.68 3.97 73.35 Ⓡ Muthoot Finance (%) Shareholding as on March 31, 2023 Promoter & Promoter group FII, FC, MF & Others Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on March 31,2023) 393,399 million 19#21BOARD OF DIRECTORS - PROMOTER GROUP George Jacob Muthoot Chairman Muthoot Finance (1/2) George Alexander Muthoot Managing Director Whole time Director George Thomas Muthoot Alexander George Whole time Director George M George Whole time Director George M Jacob Whole time Director George Alexander Whole time Director 20 20#22BOARD OF DIRECTORS - INDEPENDENT DIRECTORS Jacob Benjamin Koshy Independent Director Usha Sunny Independent Director Ⓡ Muthoot Finance (2/2) Jose K Mathew Independent Director Ravindra Pisharody Independent Director V. A. George Independent Director Abraham Chacko Independent Director C A Mohan Independent Director 21 221#23Ⓡ Muthoot Finance (%) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 DIVIDEND PAYOUT Delivering consistent returns to stakeholders 220 200 200 150 120 100 60 60 20 20 29 29 Dividend payout (in millions) 8,832 8,027 8,024 7,249 5,796 4,813 2,885 2,877 Dividend (%)* Dividend Payout Ratio (%) 25 25 20 20 * On face value of 10 per equity share 21 21 19 24 24 22 22 22 22#24Pa Muthoot Finance GEOGRAPHICAL PRESENCE A strong presence of 4739 branches across India (%) Branches region wise State wise Branch Network 59 59 17 7 ■ East North 17 ■ West ■South (As of March 31, 2023) Rural India accounts for about 65% of total gold stock in the country 。 Large portion of the rural population has limited credit access Catering to under-served rural and semi- urban markets through strong presence Jammu & Kashmir 17 Himachal Pradesh Punjab 13 191 Uttarakhand Chandigarh 10 Haryana 142 23 Delhi 226 Rajasthan 146 Uttar Pradesh 194 Assam 34 Bihar 25 Tripura 4 Gujarat 211 Madhya Pradesh 106 Jharkhand 17 West Bengal $162 Daman & Diu 01 Chhattisgarh 27 Odisha 79 Maharashtra 275 Dadra & Nagar Haveli 01 Telangana 314 Goa 36 Karnataka 536 Andhra Pradesh 426 Pondicherry Tamil Nadu 7 Kerala 980 528 Andaman & Nicobar Islands 8 23#25DIGITAL INITIATIVES Digital convenience for new gen & Millennium Customer acquisition Muthoot • E-TRANSFER • • Direct Credit Facility Loan proceeds credited to bank account NEFT/RTGS/IMPS/UPI mode of bank transfer Instant credit to customer bank account using UPI Less cash handling at branch 440 682 Pa Muthoot Finance POS Terminals Enables swiping of Debit cards issued by banks Swiping charges for Interest payments waived off Paytm पेPhonePe Google Pay BBPS BHARAT BILL PAYMENT SYSTEM NPCI भारतीय राष्ट्रीय भुगतान निगम NATIONAL MUNTE CORPORATION OF INDIA Loan repayment option through • Paytm Phone Pay Google Pay BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance UPI Powered by NPCI UPI AutoPay and eMandate for EMI collections • New Initiatives Launched Al based Chat bot with transactional capabilities. WhatsApp banking facility launched with online-top up facility. RPA enabled Penny Drop verification for Bank Account online linking. Video KYC and Digital KYC are enabled for Customers Digital on-boarding through CRM. BBPS enabled Payment link generation through SMS or WhatsApp. New Payment Gateway Razorpay added in iMuthoot Mobile App BBPS Utility Payment through iMuthoot Mobile App RPA enabled UPI VPA mapping using customers verified Mobile No.'s 24#26Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) Muthoot Finance 36.3% of gold loan customers are transacted online. (including Paytm, PhonePe & Google Pay) Muthoot Online Muthoot Qnline Our online services has now been re-branded to Muthoot Online, from WebPay earlier. Customers can now make payment of interest and principal re-payments using Debit Card/Net Banking/UPI. Withdraw available loan amount and renew eligible loans through our Online Gold Loan (OGL) facility. To facilitate this service, we have partnered with leading Banks and online payment gateway service providers. e-Sign facility has been launched in September' 17. Bank account online linking feature introduced. Insurance products- Hospicash renewal launched Introduced Whats App opt-in facility for customers Muthoot personal loan and homefin loan repayment facility introduced. Refer & Earn Milli Gram Gold rewards for customers Buy NCD Online option • . ¡Muthoot App in Muthoot Mobile App Launched in Nov'16 has about 51.1 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.9.683 Crs payments from 3.49 Cr successful transactions so far (Including WebPay). Updated scheme details available with loan calculator. Google maps integrated for easy location of nearest branch and fix appointment. UPI facility has been introduced in Feb'19. Paytm Payment gateway has been introduced in June'19. e-Sign facility has been introduced in Jan'18. Along with gold loans, lead creation for PL, HL, AL also introduced. Bank account online linking feature introduced. Insurance products (Hospicash, MSOP, MHP) also launched ) WhatsApp Gold Op-in Launched "ZIP Consumer loans" launched in iMuthoot. Customers can now purchase consumer durable products online from their eligible top-up amount and can be paid in installments. Refer & Earn Milli Gram Gold rewards for customers Buy NCD Online option 45 25#27DIGITAL INITIATIVES Loan at Home Loan at Home App Muthoot Finance Loan @Home Mobile App Launched in July'20 has about 10K + downloads. The loan at home is an app-based digital service, with which a customer can apply for a gold loan through the 'Loan@Home' mobile app and web portal After which an appointment is made for the visit by Muthoot Finance executives, to visit the customer's home. Now the customer can avail of a gold loan from the comfort of their home without having to visit the branch at any stage of the procedure. Loan top-up and repayment facilities are also available in this application Facility to place loan release request online Option to update Bank account and PAN card online Loan closure and Door-step delivery through LAH customer App. • Ⓡ Muthoot Finance 26 26#28Muthoot Finance (in millions) Mar-23 Mar-22 Standalone Statement of Assets and Liabilities Particulars ASSETS Financial assets Cash and cash equivalents 64,288 91,785 Bank Balance other than above 324 644 Derivative Financial Instruments 605 Trade Receivables Loans Investments 16 21 642,649 593,842 13,169 13,205 1,336 1,225 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 402 485 Property, Plant and Equipment 2,682 2,637 Captial Work-In-Progress 674 456 Other Intangible Assets 36 37 Other Non Financial Assets 623 603 Total Assets 726,198 705,547 27 27#29Standalone Statement of Assets and Liabilities Particulars LIABILITIES Financial Liabilities Ⓡ Muthoot Finance (in millions) Mar-23 Mar-22 Derivative Financial Instruments 1,892 4,798 Trade Payables 1,959 1,512 Debt Securities 137,384 124,979 Borrowings(other than Debt securities) 358,992 371,710 Subordinated Liabilities 967 1,424 Other Financial Liabilities 9,564 11,782 Non-Financial Liabilities Current Tax Liabilities(net) 789 1,353 Provisions 3,516 3,598 Other Non-Financial Liabilities 515 945 EQUITY Equity Share Capital Other Equity Total Liabilities 4,014 4,013 206,605 179,432 726,198 705,547 28#30REVENUE & PROFIT Standalone Financial Results INCOME FY 2023 FY 2022 YOY Ⓡ Muthoot Finance (in millions) Growth Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 (%) Interest Income 103,686 109,560 (5) 27,940 26,184 24,746 24,816 Other than Interest Income 1,751 1,424 Total 105,437 110,984 25 23 698 487 289 277 (5) 28,638 26,671 25,035 25,093 EXPENSES Finance Cost 36,991 38,358 (4) 9,407 9,141 9,027 9,416 Employee benefit Expense 11,044 9,487 16 3,086 2,659 2,583 2,715 Administrative & Other 8,599 7,421 16 2,441 1,987 1,692 2,480 expenses Impairment on Financial 605 1,270 Instruments (52) 753 557 (127) (577) Directors Remuneration 950 815 17 616 112 112 112 Depreciation & Amortisation 583 539 8 171 147 135 129 Total 58,773 57,890 2 16,474 14,603 13,421 14,275 PROFIT Profit Before Tax 46,664 53,094 (12) 12,164 12,068 11,614 10,818 Profit After Tax 34,735 39,543 (12) 9,027 9,017 8,672 8,020 29#31EQUITY Strong Capital Base Networth Mar-23 Dec-22 Sep-22 Jun-22 Ⓡ Muthoot Finance (in millions) Mar-22 Equity Share Capital 4,014 4,014 4,014 4,014 4,013 Other Equity 206,605 197,378 188,287 179,236 179,432 Total 210,619 201,392 192,301 183,250 183,445 30 30#32ASSETS Core focus continues to be gold loan Gross Loan Assets under management* В Ⓡ Muthoot Finance Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Growth Growth (in million) (in million) (in million) (in million) (in million) YoY (%) QoQ (%) Gross loan assets under management 632,098 577,311 572,303 566,892 580,532 9 9 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 618,753 568,245 565,014 561,766 575,313 8 9 13,345 9,066 7,289 5,126 5,219 156 47 31#33LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Growth Growth YOY QoQ 845 Secured Non-Convertible Debentures (Muthoot Gold Bonds) (in million) (in million) (in million) (in million) (in million) (%) (%) 1,526 1,753 1,945 2,195 (62) (45) Secured Non-Convertible Debentures- Listed 136,694 111,635 113,285 122,542 123,034 11 22 Borrowings from Banks/Fls 296,243 275,858 261,737 233,483 276,631 7 7 External Commercial Borrowings- Senior 45,194 45,499 81,345 78,973 75,792 (40) (1) secured Notes Subordinated Debt Subordinated Debt -Listed 971 1,071 1,431 1,431 1,431 (32) (9) Commercial Paper 11,536 9,892 17 Other Loans 6,150 7,457 8,544 15,893 9,726 (37) (18) Total 497,633 443,046 468,095 454,267 498,701 - 12 *Principal amount of Borrowings 32 42#34GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* 680 640 600 560 520 480 440 408 400 360 336 320 288 280 260 272 216 233 243 240 200 160 120 80 40 0 Ⓡ Muthoot Finance (in billions) 619 575 562 565 568 519 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 *Principal amount of gold Loan assets 33#35GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security Ⓡ Muthoot Finance (In tonnes) 200 187 180 176 178 177 180 175 171 169 160 155 142 149 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 34#36Ⓡ GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO Muthoot Finance Diversified gold loan portfolio across India (%) 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 East 5 6 6 7 7 8 8 9 9 9 9 9 10 10 West 11 13 15 17 18 19 20 19 19 19 19 20 20 19 ■North 19 22 22 22 23 23 23 23 ■South 65 59 50 57 54 52 52 50 50 260 260 229 22 22 22 49 49 50 50 280 22 23 23 23 50 48 48 47 48 40 Gold Loan Assets Under Management * (in billions) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 260 216 6 233 24 243 272 288 336 408 ;། 5 519 575 562 565 568 619 *Principal amount of Gold Loan Assets 35#37Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 155 135 115 95 89.28 74.97 75 63.69 66.70 63.20 50.63 55.01 56.93 55 35 15 (in millions) 130.57 124.61 121.67 121,74 121.63 112.10 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 *Principal amount of Gold Loan Assets 36#38HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections Pa Muthoot Finance (in billions) 167 148 98 98 102 91 90 87 182 85 77 77 65 6869 6970 70 61 60 58 5252 10406 112 12732 100 103 101 8887 173 156 4341 4342 II 4845 5554 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4 Q1 FY20 FY20 FY20 FY20 FY21 FY21 ■ Avg Monthly Disbursement Strong level of disbursements and collections ■Avg Monthly Collection 37 37#39% of collections to disbursement HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection 60% Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 62% 80% 40% 20% 0% FY15 FY16 FY17 FY18 FY 19 FY 20 FY 21 ■ 1m ■ 2m ■ 3m ■ 4m ■ 5m ■ 6m Collections in 6 months of disbursements made in respective periods A high proportion of gold loan is repaid within first 6 months FY 22 38 888#40Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Gold Loan assets (in Billions) 619 568 565 562 575 519 407 336 288 272 243 Quantity of Gold content in Ornaments held as Security 180 175 177 178 187 171 176 169 155 149 142 (Tonnes) Gold Price/gm (*) 5,473 5,026 4,608 4,659 4,716 4,048 3,955 2,910 2,824 2,725 2,670 Lender's Perspective Market Price of Gold Content in 985 880 816 829 882 692 696 492 438 406 379 Ornaments (in Billions) Margin of safety on loans 37% 35% 31% 32% 35% 25% 42% 32% 34% 33% 36% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards making charges etc 1,182 1,056 979 995 1,058 830 835 590 526 487 455 Equity of Borrower in the Gold Ornaments net of loans availed 48% 46% 42% 44% 46% 37% 51% 43% 45% 44% 47% * Above calculations are made on overall portfolio and excludes interest accrued on loans 39#41CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 Gold Loan AUM (in Millions) 618,753 568,244 565,014 561,766 575,313 519,266 407,724 335,853 QoQ % change in Gold Loan AUM 9 1 1 (2) 6 5 8 No. of Loan Accounts 81,46,997 81,05,770 81,59,960 80,90,132 83,69,535 84,10,139 80,22,325 80,62,139 QoQ % change in no.of loan accounts 1 (1) 1 (3) (2) 5 No.of Active customers QoQ % change in no.of customers 53,23,362 52,33,973 52,16,519 51,73,166 53,16,246 51,90,220 49,33,886 47,21,243 2 1 (3) 3 1 40 40#42Ⓡ CUSTOMER BASE Highly churning customer base (2/2) Above Gold Loan AUM and No. of customers includes: Fresh loans to inactive customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans to New Customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans with new collateral to existing active customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Muthoot Finance Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 401,638 381,683 402,622 393,018 427,472 432,320 352,036 380,171 7 7 8 8 8 8 8 8 35,814 28,643 29,020 27,646 40,233 29,170 21,806 20,023 333,907 308,438 322,521 314,152 372,764 361,090 346,626 360,251 7 6 6 6 6 7 7 8 34,506 26,502 26,029 26,162 42,954 27,528 25,622 23,148 14 14 660,475 647,334 683,573 736,855 763,317 756,618 702,566 779,363 12 12 13 14 15 17 56,499 45,549 49,057 61,505 69,973 48,859 42,368 42,751 41#43YIELD ON LOAN ASSETS AND NIM Yearly (%) Quarterly Pa Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 22.21 21.66 22.17 22.00 22.00 21.43 21.23 20.06 20.00 20.00 20.27 19.72 17.70 19.31 18.48 18.22 18.00 18.00 17.38 17.30 16.00 14.00 15.29 12.74 14.20 15.53 14.24 13.03 16.00 14.00 11.38 12.26 12.00 11.86 10.84 12.00 9.79 10.47 11.38 11.04 10.74 10.00 10.00 10.27 9.42 9.52 8.69 9.25 8.00 7.03 7.51 7.93 6.92 7.02 8.00 6.31 6.22 6.36 6.34 6.56 6.00 6.00 Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Mar-18 Mar-19 Mar-20 Mar-21 Mar-22Mar-23* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 42 22#44INTEREST SPREAD Yearly (%) Quarterly В Ⓡ Muthoot Finance (%) 26.00 26.00 24.00 23.03 21.66 22.21 22.17 24.00 21.43 22.00 21.23 20.27 22.00 19.31 19.72 20.06 20.00 20.00 17.70 18.48 18.00 18.22 17.38 18.00 17.30 16.00 16.00 14.04 13.45 13.49 14.00 12.42 14.00 11.88 11.99 12.00 10.93 10.80 10.90 12.23 12.00 9.24 10.53 9.69 10.00 9.00 8.99 10.44 10.09 8.76 8.39 8.38 8.68 10.00 9.37 8.92 8.07 9.40 8.01 8.04 8.13 8.00 7.93 7.98 8.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18*Mar-19*Mar-20*Mar-21*Mar-22*Mar-23* *Under IND-AS 6.00 Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* Interest Income on Average Loan Assets Interest Expenses on Average Borrowings Interest Spread 43#45RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 8.00 7.00 6.00 5.00 4.05 4.00 3.22 3.32 3.03 3.00 Ⓡ Muthoot Finance (%) Quarterly (%) 10.00 9.00 8.11 7.99 7.24 8.00 6.36 6.19 4.47 7.00 5.93 6.27 5.97 6.09 6.00 5.59 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 *Mar-19*Mar-20*Mar-21*Mar-22*Mar-23* *Under IND-AS 5.00 4.00 3.00 Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* 44#46IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (* in millions) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Stage I Loan Assets 599,834 549,192 554,108 550,202 545,326 Stage II Loan Assets 8,278 13,223 8,637 4,612 17,834 Stage III Loan Assets 23,986 14,896 9,558 12,078 17,372 % Stage III Assets on Gross Loan Assets 3.79 2.58 1.67 2.13 2.99 ECL Provision on Gross Loan Assets 7,658 6,950 6,426 6,594 7,219 ECL Provision as % of Gross Loan Assets 1.21 1.20 1.12 1.16 1.24 Excess Provision outstanding in books 2,954 2,954 2,954 2,954 2,954 Bad Debts (in millions) FY 2023 FY 2022 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Bad Debts Written Off 169 289 36 36 40 40 53 % of Bad Debts written off to Gross Loan Assets 0.03 0.05 0.01 0.01 0.01 0.01 45#47LIABILITY MIX Maintaining a diversified funding profile* (%) 1 * 9 60 60 *Principal amount of Borrowings 28 (As of March 31, 2023) Ⓡ Muthoot Finance Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 845 mn (0%) 136,694 mn (28%) Secured Non-Convertible Debentures - Listed - - Borrowings from Banks/Fls - 296,243 mn (60%) External Commercial Borrowings- Senior secured Notes - 45,194 mn (9%) ■Subordinated Debt - Listed - 971 mn (0%) ■Commercial Paper - 11,536 mn (2%) Other Loans - 6,150 mn (1%) 46#48DOMESTIC CREDIT RATINGS Highest Rating among gold loan companies Short-term Rating Rating COMMERCIAL PAPER CRISIL RATINGS CRISIL A1+ ICRA LIMITED ICRA A1+ BANK LOANS ICRA LIMITED Long-term Rating ICRA A1+ Indicates Ⓡ Muthoot Finance Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk SUBORDINATED DEBT Rating CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED BANK LOANS ICRA LIMITED ICRA AA+(Stable) ICRA AA+(Stable) Indicates High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk 47#49INTERNATIONAL CREDIT RATINGS Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB(Stable) S&P GLOBAL RATINGS BB(Stable) MOODY'S INVESTORS SERVICE Ba2 (Stable) Ⓡ Muthoot Finance An elevated vulnerability to default risk, particularly in the event of adverse change in business or economic condition over time, however, business or financial flexibility exists that supports the servicing of financial commitments. Less vulnerable in the near-term but faces major ongoing uncertainities to adverse business, financial and economic conditions. Obiligations are judged to be speculative and are subject to substantial credit risk. The modifier 2 indicates a midrange ranking 48#50BREAK-UP OF TOTAL INCOME Interest Income Yearly 1,40,000 1,20,000 1,00,000 Ⓡ Muthoot Finance Quarterly (in millions) 1,40,000 1,09,560 1,03,285 1,03,686 1,20,000 1,00,000 85,644 80,000 60,000 53,641 49,077 42,703 48,130 56,546 62,021 67,570 80,000 60,000 40,000 40,000 27,940 26,184 24,746 24,816 20,000 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19*Mar-20* Mar-21 * Mar-22* Mar-23* 20,000 0 Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* Other Than Interest Income Yearly (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 1,751 2,000 1,584 1500 1,310 1,424 1,236 1,500 921 1000 620 1,000 543 698 500 397 230 500 487 289 277 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* *Under IND-AS 49#51Ⓡ OPERATING EXPENSES TO AVERAGE LOAN ASSETS Muthoot Finance Operational efficiency over the years Yearly (%) Quarterly 8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 5.63 6.00 5.43 5.50 5.10 5.50 5.01 4.89 4.94 5.00 5.00 4.46 4.50 4.57 4.08 3.92 4.50 4.00 3.48 3.62 4.00 3.50 3.50 3.00 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* 2.50 *Under IND AS 3.70 (%) 3.30 2.99 Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* 50 50#52Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly (in million) Muthoot Finance Quarterly (in millions) Q4 FY Mar-23 Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 2023* Q3 FY Q2 FY Q1 FY 2023* 2023 2023* Employee Benefit Expenses 11,044 9,487 9,270 9,657 8,415 7,393 7,280 6,418 3,086 2,660 2,583 2,715 Rent 2,487 2,350 2,189 2,158 1,974 1,913 1,808 1,713 643 621 606 616 Advertisement & Publicity 1,581 1,197 1,190 1,163 1,056 720 531 626 446 430 238 467 Communication Costs 422 498 387 355 368 404 372 378 126 100 85 110 Traveling and Conveyance 365 271 210 273 240 182 186 187 98 92 92 83 Printing and Stationery 192 150 151 177 153 136 129 144 60 66 43 47 35 Repairs and Maintenance 505 568 276 283 280 304 362 290 152 120 105 127 Legal and Professional 402 283 387 260 203 154 124 93 155 114 68 65 Charges Business Promotion 206 7 369 720 481 209 201 149 68 41 59 38 Expenses Directors Remuneration 950 815 793 633 561 431 362 196 616 112 112 112 Depreciation and 583 539 507 431 421 439 482 575 171 148 135 129 Amortisation Expenses Others 2,440 2,098 2,075 1,677 1,260 2,970 835 1,014 685 424 392 938 Provision For Standard & 2,647 1,223 NPA Assets Impairment on Financial 605 instruments Total 21,782 1,270 950 957 259 19,533 18,754 18,744 15,670 15,571 15,319 13,006 7,066 316 753 557 (127) (577) 5,462 4,395 4,858 *Under IND-AS 51#53BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Mar-23 Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 2023 Q4 FY Q3 FY Q2 FY Q1 FY 2023* 2023* 2023* Employee Benefit Expenses 51 49 49 52 54 47 48 49 44 49 59 56 Rent 11 12 12 12 13 12 12 13 9 11 14 13 Advertisement & Publicity 7 6 6 6 7 5 3 5 6 8 5 10 Communication Costs 2 2 2 2 2 3 2 3 2 2 2 2 Traveling and Conveyance 2 1 1 1 2 1 1 1 1 2 2 2 Printing and Stationery Repairs and Maintenance 12 1 1 1 1 1 1 1 1 1 1 3 1 2 2 2 2 2 2 2 ♡ 2 1 2 1 1 1 1 1 2 2 2 1 Legal and Professional Charges Business Promotion 1 2 4 3 1 1 1 1 1 1 1 Expenses Directors Remuneration 4 4 3 2 2 9 2 2 Depreciation and 3 3 3 2 3 3 4 2 3 3 Amortisation Expenses Others 11 11 12 9 8 19 5 8 10 10 8 18 Provision For Standard & 17 9 I NPA Assets Impairment on Financial instruments Total *Under IND-AS 3 7 5 5 2 2 11 10 (3) (12) 100 100 100 100 100 100 100 100 100 100 100 100 52#54Ⓡ PROFITABILITY RATIOS Yearly (%) Muthoot Finance Quarterly (%) Q4 FY Q3 FY Q2 FY Q1 FY (Based on Income) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 2023* 2023* 2023 2023* Interest expense to Gross Income 35.08 34.56 34.92 32.00 32.51 30.50 39.92 46.31 32.85 34.27 36.06 37.52 Selling, general and administrative expenses to Net Income 30.09 24.40 25.13 29.26 32.24 28.93 34.88 41.36 31.94 27.14 27.40 33.85 Provisions & Write Offs to 0.88 1.75 1.38 1.61 0.59 5.44 8.16 6.20 3.92 Net Income 3.18 (0.80) (3.68) Operational expenses to 30.97 26.15 26.51 30.87 32.84 34.38 43.03 47.56 35.86 30.32 26.61 30.17 Net Income OPBDT / Net Income 69.03 73.85 73.49 69.13 67.16 65.62 56.97 52.44 64.14 69.68 73.40 69.83 Depreciation to Net Income 0.85 0.74 0.74 0.73 0.90 1.00 1.33 2.13 0.89 0.84 0.85 0.82 OPBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 50.31 63.25 68.84 72.55 69.01 PBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 50.31 63.25 68.84 72.55 69.01 PAT / Net Income 50.75 54.45 54.09 50.88 42.47 40.38 34.17 30.93 46.94 51.44 54.17 51.16 *Under IND-AS 53#55Ⓡ PROFITABILITY RATIOS Yearly (Based on Average Loan Assets) Muthoot Finance (%) Quarterly (%) Mar-23* Mar-22 Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Q4 FY Q3 FY Q2 FY Q1 FY 2023 2023* 2023* 2023* Interest income to avg. loan assets 17.70 20.06 22.17 23.03 21.63 22.21 21.43 19.72 18.48 18.22 17.38 17.30 Interest expense to avg. loan assets 6.31 7.02 7.93 7.51 7.16 6.92 8.69 9.25 6.22 6.36 6.34 6.56 Net Interest Margin 11.38 13.03 14.24 15.53 14.47 15.29 12.74 10.47 12.26 11.86 11.04 10.74 Other income to avg. loan assets 0.30 0.26 0.53 0.43 0.40 0.47 0.35 0.25 0.46 0.34 0.20 0.19 Net Income Including Other 11.68 13.30 14.77 15.95 14.87 15.76 13.08 10.72 12.72 12.20 11.24 10.93 Income Selling, general and administrative expenses to avg. 3.52 3.25 3.72 4.68 4.80 5.32 4.56 4.43 4.07 3.31 3.08 3.70 loan assets Provisions and write offs to avg. 0.10 0.23 0.20 0.26 0.09 0.11 1.07 0.67 0.50 0.39 (0.09) (0.40) loan assets PBDT to avg. loan assets 8.06 9.81 10.85 11.02 9.98 10.33 7.45 5.62 8.16 8.50 8.25 7.63 Depreciation to avg. loan assets 0.10 0.09 0.10 0.11 0.12 0.15 0.17 0.23 0.11 0.10 0.09 0.09 PBT to avg. loan assets 7.97 9.72 10.75 10.91 9.85 10.19 7.28 5.39 8.05 8.40 8.16 7.54 Tax to avg. loan assets 2.04 2.48 2.76 2.79 3.54 3.82 2.81 2.08 2.08 2.12 2.07 1.95 PAT to avg. loan assets 5.93 7.24 7.99 8.12 6.31 6.36 4.47 3.32 5.97 6.27 6.09 5.59 Cash Profit to avg. loan assets 6.03 7.33 8.09 8.23 6.44 6.51 4.65 3.54 6.08 6.37 6.18 5.68 *Under IND-AS 54 54#56PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly 55,000 50,000 45,000 40,000 40,574 35,000 30,000 25,000 20,000 19,210 15,114 19,721 13,168 17,776 15,000 11,936 10,279 10,042 10,000 11,798 7,801 8,096 5,000 6,705 0 PBT PAT Quarterly PBT PAT 53,094 45,000 50,065 46,664 40,000 39,543 35,000 37,222 30,000 30,768 34,735 25,000 28,447 30,183 20,000 15,000 12,164 12,068 11,614 10,818 10,000 9,027 9,017 8,672 8,020 5,000 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* *Under IND-AS Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* 55 55#57NETWORTH Steady capital position Share Capital and Reserves & Surplus 2,40,000 Ⓡ Muthoot Finance (in millions) 2,20,000 2,10,619 2,00,000 2,01,392 1,92,301 1,83,250 1,80,000 1,83,445 1,60,000 1,52,389 1,40,000 1,20,000 1,15,718 97,928 1,00,000 78,120 80,000 65,164 56,192 60,000 37,356 42,646 50,835 40,000 20,000 0 *Under IND-AS Mar 13 Mar-14 Mar- 15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Jun-22* Sep-22* Dec-22* Mar-23* 56 99#58RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 55 55 50 50 45 45 40 40 35 35 30.15 28.26 30 27.77 30 24.81 25 22.40 23.55 25 17.53 20 18.32 18.47 19.50 19.44 17.50 17.63 20 15 14.35 15.13 15 10 5 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20*Mar 21 Mar 22*Mar 23* 0 *Under IND-AS Q4 FY 2023* Q3 FY 2023* Q2 FY 2023* Q1 FY 2023* 57 57#59CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Ⓡ Muthoot Finance (%) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Capital Adequacy Ratio 31.77 33.29 31.96 30.62 29.97 Tier-I 31.01 32.41 31.07 29.73 29.10 Tier-II 0.76 0.88 0.89 0.89 0.87 58#60MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Ⓡ Muthoot Finance FY 2023 FY 2022 Q4 FY 2023 Q3 FY 2023 Q2 FY 2023 Q1 FY 2023 Earnings per share (*) - Basic 86.54 98.55 22.49 22.46 21.61 19.98 Diluted 86.52 98.50 22.48 22.46 21.61 19.97 Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Book Value per share (*) 524.56 501.59 478.95 456.48 456.98 Market price per share (₹)** 979.95 1,063.05 1,040.05 976.30 1,330.95 Price to Earnings ratio*** 11.32 12.08 11.41 10.35 13.51 Price to Book Value ratio 1.87 2.12 2.17 2.14 2.91 **Source: www.nseindia.com ***Based on trailing 12 months EPS 59#61CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (*In millions) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Outside Liabilities 515,579 458,748 486,693 474,826 522,101 Cash and Cash Equivalents & 64,428 52,793 57,904 58,616 91,926 Bank Balances Tangible Networth 210,584 201,361 192,270 183,214 183,408 Capital Gearing 2.14 2.02 2.23 2.27 2.35 60 00#62Ⓡ TEAM STRENGTH Muthoot Finance Groomed human capital over the years to meet growing business requirements 28000 27000 26000 25012 24881 25000 24000 22882 23000 22781 22000 21000 20000 (No. of Employees) 27273 27204 26716 25911 26618 26399 25554 24205 24224 23455 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 61#63OUR SUBSIDIARY Ⓡ Muthoot Finance ASIA ASSET FINANCE PLC A finance company with a golden heart 32 62#64ASIA ASSET FINANCE PLC - AN OVERVIEW Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance on December 31, 2014. As on March 31,2023, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 21,201 million as on March 31, 2023 AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange AAF is in lending business since 1970. At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 75 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 53 years, evolving to serve the growing needs of people of Sri Lanka. 63#65PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance o Fixed Deposits 。 Leasing 。 Business Loan o Personal Loan o Group Personal Loan o Corporate Loans 。 Mortgage Loans 。 Factoring 。 Short Term Loans Micro Finance 。 Loan against Gold Jewellery 64 64 Ⓡ#66BRANCH NETWORK Pa ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients 59 65#67Key Financial Parameters Particulars INR/LKR Number of branches FY 2023 0.249700 Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) FY 2022 0.257069 Number of Employees 75 59 590 526 Gross Loan AUM (LKR) 21,201 17,345 Capital Adequacy Ratio (%) 26 26 28 Total Revenue (LKR) 6,006 3,181 Total Expense (LKR) 5,647 2,979 Profit Before Tax (LKR) 360 202 Profit After Tax (LKR) 295 118 Shareholders Funds (LKR) 3,011 2,756 Total Outside Liabilities (LKR) 22,002 16,586 Total Assets (LKR) 25,013 19,342 66 99#68OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 40 67#69Ⓡ MUTHOOT HOMEFIN - AN OVERVIEW Muthoot Homefin Muthoot Finance Muthoot Homefin (India) Limited is a Housing Finance Company registered with The National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd in Aug'17. MHIL focuses on extending affordable housing finance and targets customers in Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in Tier II & Tier III locations. It operates on a 'Hub and Spoke' model, with the centralised processing at Corporate Office at Mumbai. MHIL has operations in Kerala, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chandigarh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Punjab, Delhi, Tamil Nadu, Chattisgarh and Pondicherry. As on March 31, 2023, it has a loan portfolio of Rs. 14,381 million. ICRA and CARE assigned Short Term Debt Rating of ICRA A1+ and CARE A1+ respectively for its Commercial Paper. CRISIL assigned Long Term Debt Rating of CRISIL AA+/Stable for its bank limits and Non Convertible debentures and CARE assigned Long Term Debt Rating of CARE AA+/Stable for its Non Convertible debentures. 68 88#70Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) FY 2023 FY 2022 Number of branches 108 108 Number of Sales Offices 108 108 Number of Employees 346 243 Gross Loan AUM (*) 14,381 14,699 Net Loan Assets 10,871 10,538 Capital Adequacy Ratio (%) 66 60 Total Revenue (*) Total Expense (*) Profit Before Tax (*) 1,548 2,144 1,407 2,043 141 101 104 84 Profit After Tax (*) Shareholders Funds (*) 4,575 4,471 Total Outside Liabilities (*) 7,536 8,355 Total Assets (*) 12,111 12,826 69 99#71Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars Disbursement (*) (in millions) FY 2023 FY 2022 2,235 1,341 Borrowings (*) 6,602 7,643 Debt Equity Ratio (%) 1.44 1.71 Yield on Advances (%) 12.70 12.41 Interest Spread (%) 4.32 4.11 NIM (%) 7.04 6.16 Cost to Income Ratio (%) 52.85 56.90 Return on Assets (ROA) (%) 1.00 0.65 Return on Equity (ROE) (%) 2.30 1.91 Stage III Loan Assets 436 309 % Stage III assets on Net Loan Assets 4.01 2.93 Stage III ECL Provision 289 178 ECL Provision 358 257 ECL Provision as a % of Net Loan Assets 3.29 2.44 Number of Customers 21,223 21,035 70 70#72Ⓡ Financial Highlights Growth Drivers Profitability • • . • . • • Muthoot Homefin Muthoot Finance Disbursements of INR 848 mm in Q4 FY 2023: AUM INR 14381 mm as on Mar 31, 2023: Loan Book INR 10871 mm as on Mar 31, 2023: Average Ticket Size in Q4 FY 2023: INR 0.94 mm Business Presence: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Kerala, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Chandigarh, Delhi, Punjab, Tamil Nadu, Chattisgarh and Pondicherry Presence in 108 locations ROA 1% for Q4 FY 2023: ; ROE 2.30% for Q4 FY 2023: Average cost of borrowings 8.38% for Q4 FY 2023. Capital Adequacy Ratio:66.16%, Debt Equity Ratio: 1.44 Average Yield 12.70%, Interest Spread: 4.32% Received PMAY subsidy of INR 134.7 mm in Q4 FY 2023. Increasing the leverage from 1.44 times currently will help to improve the ROE Higher credit rating will help in raising funds at competitive rates. Strong liquidity in Group's balance sheet, along with its free cash flows to fund the capital requirements Established corporate brand name among borrower segment, superior customer servicing capabilities and effective loan recovery mechanisms Tier II/III cities focused distribution network with a in-house sales team along with cross-sale to the existing gold loans customers of the group Long Term Rating from CRISIL AA+/Stable which indicates low risk will help in lower cost of funds. Short Term Rating: ICRA A1+ / CARE A1+ Debt/Equity ratio at 1.44 times as on Mar 31, 2023, indicates ample scope for financial leverage to increase ROE Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex Opportunities • • Huge shortfall for housing units in EWS / LIG segment in India Attraction of builders to the construction of affordable housing due to Infrastructure status given in Union Budget Increase in affordability driven by sustained GDP growth rate and stable property prices. Decrease in average members per household and emergence of nuclear families Increase in workforce to be driven by expected bulge in working age population Increasing urbanization led by rural-urban migration and reclassification of rural towns 71#73OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 72 22#74Ⓡ Muthoot Insurance Brokers Muthoot Finance MUTHOOT INSURANCE - AN OVERVIEW HEALTH INSURANCE MIBPL became a wholly owned subsidiary of Muthoot Finance Ltd in Sep 2016. MIBPL is an unlisted private limited company holding a licence to act as Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies. During Q4 FY23, it has insured more than 13,11,700 lives with a First year premium collection of Rs.1,450 million under Traditional, Term and Health products.. During Q4 FY22, it has insured more than 11,06,000 lives with a First year premium collection of Rs. 1,328 million under Traditional, Term and Health products.. 73#75Key Business Parameters Particulars Premium Collection (*) Number of Policies Key Financial Parameters Ⓡ Muthoot Insurance Brokers Muthoot Finance FY 2023 FY 2022 6,505 4,793 (in millions) 46,86,920 36,03,048 (in millions) Particulars FY 2023 FY 2022 Total Revenue (*) 678 450 Total Expense (*) 71 78 Profit Before Tax (*) 607 372 Profit After Tax (*) 464 276 Shareholders Funds (*) 1,588 1,123 Earnings per share (*) 618 369 74#76OUR SUBSIDIARY Ⓡ Muthoot Finance BELSTAR MICROFINANCE LIMITED 15 75#77BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Ⓡ Muthoot Finance As of March 2023, Muthoot Finance holds 56.97% in BML. BML was incorporated on January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as "NBFC-MFI" by RBI effective from 11th December 2013. BML was acquired by the 'Hand in Hand' group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by 'Hand in Hand's' Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.20 mn. In the last thirteen years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra. As of March 31, 2023, BML operations are spread over 13 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Uttarakhand,West Bengal. It has 767 branches, with 132 controlling regional offices and employs 8022 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 61,925 mn in March 2023 76#78Pa Muthoot Finance Key Financial Parameters Particulars Number of Branches Number of Employees FY 2023 (in millions) FY 2022 767 729 8,022 5,939 Gross Loan AUM (*) 61,925 43,658 Net Loan Assets (*) 47,134 37,115 Capital Adequacy Ratio (%) 22 24 Total Revenue (*) 10,379 7,284 Total Expense (*) 8,686 6,723 Profit Before Tax (*) 1,693 561 Profit After Tax (*) 1,303 451 Stage III Loan Assets 1,146 2,147 % Stage III assets on Net Loan Assets 2.43 5.79 Stage III ECL Provision 840 1,619 ECL Provision 957 2,238 ECL Provision as a % of Net Loan Assets 2.03 6.03 Shareholders Funds (*) 10,923 8,559 Total Outside Liabilities (*) 51,346 37,044 Total Assets (*) 62,269 45,603 77#79OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 78#80MUTHOOT MONEY-AN OVERVIEW Muthoot Money Muthoot Finance Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non-Banking Finance Company engaged mainly in extending gold loans and loans for commercial vehicles and equipments. The operations are now centered in Hyderabad. As on 31st March, 2023 it has a total loan portfolio of Rs.3,870 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 79#81Key Financial Parameters Particulars Number of branches Number of Employees Gross Loan AUM (*) Capital Adequacy Ratio(%) Total Revenue (*) Total Expense (*) Profit Before Tax (*) Muthoot Money Muthoot Finance (in millions) FY 2023 FY 2022 149 66 920 365 3,870 2,071 24 46 564 456 561 544 3 (88) Profit After Tax (*) 2 (66) Stage III Loan Assets 144 137 % Stage III assets on Gross Loan Assets (AUM) 3.72 6.62 Stage III ECL Provision 55 51 ECL Provision 78 61 ECL Provision as a % of Gross Loan Assets (AUM) 2.01 2.94 Shareholders Funds (*) 1,038 1,035 Total Outside Liabilities (*) 3,304 1,233 Total Assets (₹) 4,342 2,268 80#82OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth MUTHOOT TRUSTEE PRIVATE LIMITED Networth FY 2023 1,141 Muthoot Finance (In millions) FY 2022 1,095 (In millions) FY 2023 FY 2022 10 10 81#83Thank You Muthoot Family - 800 years of Business Legacy