#1CSATI SATIN SATIN CREDITCARE NETWORK LTD. Reaching out! Investor Presentation April 2023 DETERMINED. DEFINITIVE. DECISIVE.#2Contents 03-18 19-21 Business Update & New Initiatives Key Performance Highlights 22-32 ATIN ⑥SATT What makes Satin a Compelling Investment Story 33-42 Key Financial & Operational Metrices 43 - 51 Company Background Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest and other costs. The Company does not undertake any obligation to update forward- looking statements to reflect events or circumstances after the date thereof. Based on revised returns filed by the company, some items may have been regrouped.#3Business Update & New Initiatives#4SCNL - Doing it Right ⑥SATT ATIN AUM Rs. 7,929 crore Growth of 24% YoY, more than the guided range New Portfolio Constitutes 94% of on-book MFI AUM PAR 1 of 0.7% and PAR 90 of 0.3% ☑ . • Advent of growth from H2FY23 • Portfolio originated from Jul'21 onwards showing performance excellent GNPA 3.28% II. Reduced from 8.01% as on Mar'22 CRAR 26.6% $ Earnings Hv Healthy CRAR to support growth opportunities PAT Rs. 264 crore | ROA 3.5% | ROE 15.0% Highest ever profitability Improved asset quality through robust underwriting strengthened collection process and Optimizing existing infrastructure to achieve operational efficiencies Experienced and stable team; leading to strong performance Data as on Mar'23/for FY23 unless specifically mentioned Numbers on Standalone basis New portfolio: Portfolio originated from Jul'21 onwards 4#5Spectacular 4th Quarter Performance (Rs. crore) 1,622 Disbursement 2,546 +57% Q4FY22 Q4FY23 Opex to Avg AUM 7.0% - 90 bps 6.1% 60 60 PAT 94 +59% RoA RoE Q4FY22 Q4FY23 15.5% ROA & ROE 20.3% 4.9% 3.3% Q4FY22 Q4FY23 Cost to Income - 1583 bps 60.8% 45.0% Q4FY22 Q4FY23 Q4FY22 Q4FY23 Capitalizing on emerging opportunities leading to impressive performance SAT ATIN 5#6SHFL - Leveraging the Outreach through Affordable Housing AUM Rs. 505 crore Growth of 59% YoY Disbursement Rs. 316 crore Growth of 111% YoY ⑥SATT ATIN • Impeccable track record of 5+ years • Clients belonging to middle and low- income groups from tier II and below cities GNPA ווי CRAR $9 Earnings Hv 0.34% Maintained strong asset quality 45.3% Healthy CRAR to support growth opportunities PAT Rs. 6 crore ROA 1.5% | ROE 4.8% 3 successive profitable years 100% retail book Eligible for SARFAESI enforcement • No willful default or fraud since inception • No ALM mismatch 21 lenders including NHB refinance Data as on Mar'23/for FY23 unless specifically mentioned 6#7SFL - Leveraging the Outreach through Retail MSME AUM Rs. 682 crore Healthy mix of retail and BC portfolio ⑥SATT ATIN Disbursement Rs. 381 crore Seeing good traction in the retail book GNPA 4.14% Reduced from 4.90% as on Mar'22 CRAR 47.0% $9 Earnings Hv Healthy CRAR to support growth opportunities PAT Rs. 6 crore ROA 2.0% | ROE 4.5% Profit momentum maintained QoQ Huge untapped potential of the missing middle of small ticket business loans averaging <= Rs. 2 Lacs secured against collateral Update on merger: • SFL and TFSL have merged effective Mar'23. All approvals and formalities of the said merger are completed • The combined entity has 1,612 people and 178 branches Data as on Mar'23/for FY23 unless specifically mentioned All numbers mentioned above are for the Combined Entity 7#8Reaching Far and Wide. Serving Millions. (YoY Change) 28.3 Lacs ACTIVE CLIENTS YOY 1% Rs. 8,087 DISBURSEMENT YoY 167% crore Rs. 1,559 cro TOTAL REVENUE crore YOY 13% Data as on Mar'23/for FY23 unless specifically mentioned Data on Consolidated basis Rs. 9,115 AUM YOY 20% crore 1,287 BRANCHES Added 67 Branches Rs. 414 crore PPOP YOY 169% SATI SATIN 95,000 VILLAGES Added 5,000 Villages 8#9Standalone Update#10Delivering Profitable Growth. With Impact. Strong Comeback. (YoY Change) Rs. 7,929 AUM YoY 124% crore Rs. 7,390 crore DISBURSEMENT YoY 183% 25.6 Lacs ACTIVE CLIENTS YoY ↑ 4% 1,078 BRANCHES Added 52 Branches SATIN CSATI 24 STATES & UT'S Added 1 State 6.3% OPEX RATIO Similar levels of FY22 53.8% 26.6% 3.5% COST TO INCOME* Reduced by 1100bps CAPITAL ADEQUACY Marginally reduced RETURN ON ASSETS Increased by 300bps Data as on Mar'23/for FY23 unless specifically mentioned Data on Standalone basis Robust performance across all parameters 15.0% RETURN ON EQUITY Increased by 1240bps *w/o taking impact of revaluation done in Q1FY23 10#11New Portfolio Testimony of our Robust Underwriting 3.65% PAR 1 5.39% 5.94% 0.70% 2.18% NBFC-MFI SFBs Banks + Others SCNL^ PAR 90 3.17% 2.93% 0.27% Our performance is far better than the industry PAR data "Data of SCNL for JLG on-book portfolio Data available as on Feb'23 ⑥SATT SATIN SCNL 0.7% PAR 1 SCNL 0.3% PAR 90 11 New portfolio: Portfolio originated from Jul'21 onwards Source: As per CRIF Highmark#12Emerging Stronger. Growth Back on Track. (Rs. crore) AUM Growth Increasing disbursement 7,929 8,045 7,220 7,275 6,409 4,394 4,031 7,390 ⑥SATI Focus on new client acquisition ATIN 41% 37% 30% 23% 61% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 YoY up by 24% YoY up by 83% YoY up by 162% Note: Limited acquisition of new clients during pandemic Strong net Customer addition of 2 Lacs in Q4FY23 Restructured Portfolio reduced to 2.5% of on-book AUM Back to pre-Covid levels of growth 12#13Prudent Approach. Good Asset Quality. Capital Accretion. ⑥SATU SATIN Asset Quality & Provisions • On-book GNPA stood at Rs. 185 crore (3.28% of on- book portfolio); Excluding Assam, GNPA stood at Rs. 91 crore (1.70% of on-book portfolio) Sufficient on-book provisions amounting to Rs. 119 crore as on Q4FY23, which is 2.10% of on-book portfolio Stable Collection Efficiency Cumulative collection efficiency for FY23 stood at (excluding restructured portfolio), 99.6% representing ~98% of on- book portfolio • During FY23, recovery against write-offs was Rs. 48 crore Ample Liquidity Sufficient liquidity of Rs. 1,029 crore as on Q4FY23 Undrawn sanctions in hand of Rs. 580 crore During FY23, the Company did a fundraise of Rs. 6,846 crore from various lenders; added 7 new lenders Healthy Capital Position Upto Q4FY23, received Rs. 137 crore out of Rs. 225 crore of preferential allotment via issue of equity shares and fully. convertible warrants Book Value Per Share at Rs. 225 on standalone basis; CRAR at 26.6% $ $ Hv Improved Asset Quality coupled with strong liquidity position 13#14Update on Assam M E On-book AUM of Rs. 326 crore i.e. 5.8% of on-book AUM On-book GNPA of Rs. 95 crore The Company has started disbursing to good clients; disbursement in FY23 stood at Rs. 271 crore PAR 1 and PAR 90 from disbursement made in FY23 is 0.05% and 0.01% respectively Update on AMFIRS • Relief to Category 1 and 2 borrowers has been a successful initiative by the Assam cabinet • Ground work ongoing for Category 3 viz sampling of data by Credit Bureaus ⑥SATT SATIN 14#15Spotlight: Prestigious Accolades tc WINNER Practices in rural India? Session Lead Anuradha Sharma Country Manager Oracle Academy ORACLE Academy te Joel Ferna Parthensh ader L at L Ha S e Educat CSR Foundation Alembic Won ET Excellence Award for Best Operational Excellence of the year for the initiative Train the Trainers Won Social Impact Awards for "Best Education Support Initiative of the Year 2022-23" ⑥SATT ATIN 15#16More Updates 000 Achievements Commitment to Sustainability SATIN ⑥SATE • All the group companies are profitable in FY23 Recognized as Top 25 India's Best Workplaces across the BFSI Industry by GPTW, India SCNL Annual Report awarded "Gold Industry Spot and ranked 35th across the world" at the Vision Awards by LACP, USA Recognized as “Company with Great Managers 2022" by People Business The Company has moved towards a more robust, scalable, secured and completely paperless technological journey with the advent of AWS into the system Ministry of finance in consultation with UIDAI & RBI has authorized SCNL to perform Aadhaar authentication of client (e-KYC) • Awarded by Indian Social Impact Awards 2023 for "Best Education Support Initiative of the Year 2022-23" Touched over 3,00,000 lives in collaboration with DocOnline by providing them with the best healthcare in terms of accessibility, affordability and quality Certified by D-light for creating social impact in the community As a part of our commitment towards environment, through our Clean Energy Program, reduced emission of 27,781 tons CO2e Disbursed 1,20,000 bicycles and ~4,60,000 solar products loan to women in India with an aim to enhance the mobility and livelihood of these women as well as to promote gender equality 16#17ESG - Being a Responsible Financial Institution. ☑ ENVIRONMENTAL SOCIAL 血 ⑥SATT SATIN • • Water and Sanitation (WASH) Loans Constructively working towards safe water and sanitation in around 280 districts and more than 26,000 villages in 19 states viz Bihar, Orissa, Uttar Pradesh, West Bengal etc. In FY23, disbursed a total of 91,830 WASH loans Clean Energy Loans an • SCNL's clean energy programme is illustration of its dedication to serve the society by providing customized financial solution • Certificate of Excellence by UNFCCC's Clean Development Program • Our strength lies in our ground level knowledge and the strong bond that we have created with our stakeholders • Reaching borrowers through a suite of financial and non-financial services, tailored to meet their needs, including lending under JLG model, product financing, community level initiatives, financing household level toilet and water facility • Almost all of SCNL clients are women, 77% of whom are based in rural hinterlands of India • Around 72% of the clients are from BPL category • GOVERNANCE Board comprises of 7 members; 5 Independent directors of which 1 is a woman director • Number of Board Meetings Conducted during the FY23: 7 • Average attendance rate at the Board and Board committee meetings (%): 91% and 95% respectively • All major committees are headed by Independent directors • Strong grievance redressal mechanism; over 99% of customer complaints resolved within TAT • Positive findings from various Assessment studies Impact • Strong disclosures compliance with transparent We remain committed to the cause of impact and inclusion 17#18Stepping into the Future. With Confidence. AUM Growth of 25% + 圖 RoA 3.5% + ⑥SATT SATIN Guidance for FY24 18#19Key Performance Highlights#20Business Trends... (Rs. crore) Rs. 9,115 cror Rs. 8,087 crore 28.3 Lacs AUM* DISBURSEMENT IN FY23 ACTIVE CLIENTS 7,617 Asset under Management Trends (Q-o-Q) 7,569 7,575 Co ⑥SATI SATIN 1,287 NO. OF BRANCHES Disbursement Trends (Q-o-Q) 7,945 9,115 633 570 1,146 1,208 1,180 1,158 1,187 570 627 930 278 154 154 145 243 2,546 7,929 6,798 6,409 6,389 6,417 1,622 1,725 1,554 1,564 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Standalone ■Subsidiaries Standalone Subsidiaries Consolidated AUM Avg Monthly Disbursement On Consolidated basis except otherwise mentioned *Asset under Management 20 20#21Leveraging the Outreach – Expansion to Secured Asset Class Non-MFI Portfolio Non-MFI book of the Company includes the MSME and Housing Finance business MSME Book grew from Rs. 378 crore in FY20 to Rs. 618 crore in FY23 (i.e. 64% growth) CSATI SATIN о Housing Finance Book grew from Rs. 139 crore in FY20 to Rs. 505 crore in FY23 (i.e. 264% growth) The strategy to diversify portfolio is yielding results. Non-MFI Portfolio 93.7% 92.0% 89.0% 87.7% 6.3% 8.0% 11.0% 12.3% FY20 FY21 FY22 FY23 Non MFI ■MFI 21#22What makes Satin a Compelling Investment Story#23What makes Satin a Compelling Investment Story Leading MFI Player With Differentiated Product Offerings Diversified Geographical Reach ATIN C ⑥SATT 01 02 03 Technology Prowess 04 Robust Underwriting Processes 05 Well-diversified Liability Profile 08 07 90 06 Positive ALM with Ample Liquidity Strong & Experienced Management Team Successfully Navigated Crisis During Legacy of Over 30 Years 23#241. Differentiated Product Offerings Product features as on Mar 23 Start Date Ticket Size Range Tenure Frequency of Collection No. of States/UTS No. of Branches AUM (Rs. crore) No. of loan accounts Avg. Ticket Size for Q4FY23 Notes SCNL Satin Housing Finance (2) Limited Satin Finserv Limited (3) MFI(1) May'08 (JLG) Housing Finance Business Correspondent MSME Services Feb'18 May'12 Mar'19 Upto Rs. 50,000 Upto Rs. 75,000 Rs. 100,000 4,000,000 Rs. 100,000 100,000,000 - (JLG Microfinance) 6 - 30 months 24-240 months 12-24 months 12-120 months Bi-Weekly Monthly Bi-Weekly Monthly/Quarterly 24 1,075* 7,536(4) 26,88,014 Rs. 42,000 (JLG) 4 10 30 157 22 505 456 226 5,448 2,59,015 10,008 Rs. 10,86,000 Rs. 39,800 Rs. 1,64,000 (Retail) (1) Includes MFI Lending (loans under JLG model, IndusInd BC and water & sanitation) and Product Financing (Loans for solar lamps, cycles) (2) Satin Housing Finance Ltd was incorporated on Apr 17, 2017 (3) SFL was incorporated on Aug 10, 2018 and TFSL acquisition was effective Sep 1, 2016. W.e.f. Mar 1, 2023 TFSL has merged into SFL. (4) SCNL also has MSME portfolio of Rs. 392 crore other than MFI portfolio *There were 1,075 branches with Microfinance operations & 18 branches with MSME operations. Out of the 18 MSME branches, 15 of them also had microfinance operations & 3 were unique CSATE SATIN 24#25...Enriching Lives through Enhanced Product Financing SATIN Satin finances product purchase of solar lamps, bicycles, consumer durables etc. and grants loan for safe water and sanitation facilities Financed Rs. 221 crore during FY23 Enriching Lives 4 Green Loans 4,233 loans disbursed Note: No. of loans disbursed during FY23 Ooo Consumer Durables 29,941 loans disbursed Water & Sanitation 91,830 loans disbursed Benefits Enhances the productivity and income generating potential of its clients Enables the Company to leverage its rural outreach Capitalizes on the Company's existing network and client base No incremental cost, thus the income directly adds up to the bottom line 25#262. Diversified Geographical Presence ...serving 28.3 lacs clients across India 56% Clients with Satin as Only Lender* 28.3 Lacs No. of Active Clients ATIN ⑥SATT 29.6 Lacs No. of Loan Accounts 37% First Cycle Clients^ The pictorial representation of Map of India does not purport to be the Political Map of India 405 No. of Districts 95,000 No. of Villages 79 No. of Regional Offices 3.0 Lacs No. of Centres 7,449 No. of Loan Officers 11,131 No. of Employees On Consolidated basis *at the time of disbursement, data is for JLG Standalone only. Considering only MFI ^as on Q4FY23 26#27Healthy PAN India Presence Presence across 24 States and UT's Uttar Pradesh AUM - 2,450 26.9% Bihar AUM-1,335 14.6% Punjab AUM - 600 Madhya Pradesh West Bengal 6.6% AUM - 597 6.6% AUM - 561 6.2% 01 Rajasthan AUM - 515 5.7% Others 02 03 04 05 AUM -1,458 16.0% Delhi & NCR Orissa AUM - 509 5.6% AUM - 410 4.5% Assam AUM - 351 3.9% Haryana AUM - 329 3.6% 06 07 08 09 10 Limiting Exposure per district ⑥SATI SATIN TOTAL AUM -9,115 100% Particulars FY18 FY19 FY20 FY21 FY22 FY23 No. of Districts - JLG 306 359 397 388 404 405 % of Districts with <1% exposure 92.5% 96.4% 96.5% 95.8% 97.3% 96.0% % of Districts with >2% 1.0% 0.6% 0.5% 0.5% 0.3% 0.2% 27#283. Technology Prowess f All Your Need, At Your Finger Tip Pay Now AePS Mode Aadhaar enabled Payment System, a strong lever to facilitate digital repayment of loan installments during the center meetings through Aadhaar authentication using biometric devices A PS▸ Taverna • Website Payment gateway on the SCNL website Clients temporarily migrating for business are able to make timely payments • • UPI 2.0 First in the industry to launch UPI 2.0 autopay One time registration & hassle-free auto debits make it a great substitute to E-NACH No burden of paying any bouncing charges on the client 1 2 3 SAIN CSA In-house developed Customer Service Application for easy repayment through various payment apps on a secured platform · . 回D QR Code QR Code on Loan Card has ensured seamless collection of EMIS Client can now pay her EMIS by just scanning the QR Code UPI UNIFIED PAYMENTS INTERFACE The entire cashless ecosystem revolves around UPI ISO 27001:2013 certified Information Security Management System (ISMS) ⑥SATT SATIN 28#294. Continuous Process Re-engineering Aadhaar E-Sign • Another big step towards making the entire business process paperless to digitize the onboarding process • Introducing customer authentication & document signing with Aadhaar as a base using a service provider In house developed Loan Management System (LMS) • Seamless customer onboarding & disbursement journey starting from Village surveys -Open General meetings - Group formation - KYC punching - Instant CB checks Instant bank a/c validations System - Validations Cashless - Disbursement- Loan utilization check - Regular collection meetings all bundled in one app AADHAAR 00ששש Strengthening the loan origination journey • 2 step OTP authentication process at • the time of KYC punching and at the time of disbursement in the branch Capturing the exact location of the client and center with the help of geo-tagging • Customer liveliness check while clicking picture during KYC 8 |****| ⑥SATI SATIN Robust new customer onboarding process ⚫ MFI scores being used as decision making tool while onboarding new customers in system •Using the data from CICs to source new customers in pockets with good credit history • • Alignment with new RBI harmonized guidelines All required board approved policies have been formulated 100% field force has been trained to perform household income & expense assessment • Changes in Underwriting guidelines, relevant processes & LMS have been completely executed . • Tightened field level monitoring mechanisms Surprise Centre Visits (SCV) by the supervisors Visits being monitored through geo-tagging & centre picture captured in the system • SCVs to be a part of KRAS/Scorecards across supervisory layers ΞΩ IIII 25 29#305. We have a well-diversified Liability Profile... Product-wise Mar'23 28.6% 15.5% 5.3% Lender-wise Mar'23 5.2% 19.5% 50.6% 9.1% 66.3% Large Lender Base Top 10 Lending Partners 65 Active Lenders % Share SATIN ⑥SATT State Bank of India Term Loan & PTC 13% NCD Bank of Maharashtra Bank of Baroda 9% 8% Direct Assignment IDFC First Bank Limited 5% ECB Blue Orchard Microfinance Fund 5% Bandhan Bank Limited 5% AAV S.A.R.L 4% HSBC 4% NABARD 4% Standard Chartered Bank 3% 59% Total of Top 10 lenders Banks NBFC Credit Rating Domestic Financial Institution Bank Loans (Long term): "A-" by ICRA Overseas Fund Short-Term ratings: "A1" by ICRA 30#316. Positive ALM with Ample Liquidity Healthy CRAR to Support Growth Opportunities 30.5% 27.8% 26.6% 25.3% FY20 FY21 FY22 FY23 Static ALM as on 31st Mar 23 (Rs. crore) Inflows Liquidity at the beginning of month Principal - Loan portfolio Interest Loan portfolio Total (A) Outflows Apr-23 May-23 15.5 Jun-23 26.3 Benefit of Positive ALM Continues 14.5 24.9 16.0 24.3 18.2 FY20 FY21 FY22 FY23 I Avg. maturity of Assets I Avg. maturity of Liabilities Jul-23 Aug-23 Sep-23 25.9 ATIN ⑥SATT Total 1,029 1,162 1,445 1,317 1,318 1,555 1,029 245 304 303 274 275 267 1,669 98 105 96 85 84 78 546 1,372 1,571 1,844 1,676 1,678 1,899 3,244 Principal repayments 182 96 455 327 97 230 1,387 Interest repayments 29 30 72 31 25 40 227 Total (B) 211 126 527 358 123 270 1,614 Cumulative Mismatch (A-B) 1,162 1,445 1,317 1,318 1,555 1,630 1,630 Undrawn sanctions in hand of Rs. 580 crore as on Mar'23 31#32Successfully Navigated Crisis During Legacy of Over 30 Years Implementation of best-in-class technology Strong Capitalization with Ample Liquidity Capital Adequacy has improved from 18.3% in 2016 to 26.6% currently • Reduced TAT • Real-time data Learnings from • Enhanced Productivity • Demonetization • Improved monitoring and control Diversifying Geographical Presence Increasing exposure to newer states • Raised Rs. 922 crore equity capital . Liquidity of around Rs. 1,000 crore • SATIN Strategic Changes Diversified out of unsecured MFI portfolio by floating subsidiaries in housing and MSME finance • • 96.0% of districts with <1% exposure Changed center meeting to bi-weekly • • UP share brought down from 40.9% in Dec' 16 to 26.9% in Mar'23 Process re-engineering • Strengthened management team Technology and Underwriting Contactless repayments via popular apps like Google pay, Paytm, Phonepe etc. Addition of Satin on BBPS (Bharat Bill Payment System) Payment link on the Satin website • "Customer Service App" launched Learnings from COVID-19 • • • • QR code on customer loan card • First in the industry to launch UPI 2.0 (auto debit) • Switched to AWS Dedicated manpower for collections Steps to obtain Sub-KUA License . . Fund Raising First MFI to successfully close an equity round during the peak of pandemic; raised ~Rs. 120 crore vis Rights Issue in Aug/20, fully paid up as of Sep'21 Raised Rs. 225 crore through preferential issue from Promoter Group & Non Promoter Group; received Rs. 137 crore till date Amalgamation of Subsidiaries The management decided to merge TFSL with SFL to leverage on the capital and outreach of the individual companies, combined entity is SFL De-risking Geographic Concentration (No. of States) 16 + 8 states 24 District Diversification Reduction in Top 4 State Contribution 226 Reduced Leverage +79% 405 81% 7.0x 55% Improved Capital Adequacy 26.6% 18.3% 2.9x Dec-16 Mar-23 Dec-16 Mar-23 Dec-16 Mar-23 Dec-16 Mar-23 Dec-16 Mar-23 32#33Key Financial & Operational Metrices#34Key Operation Metrics Districts, States and Branches 1,163 1,383 1,257 1,224 Employees & Loan Officers 1,2871 6,296 8,152 8,090 8,774 7,4492 13,005 12,726 12,705 24 11,831 23 23 23 22 1,495 1,325 1,790 1,537 11,131³ 1,262 383 388 404 405 340 10,419 11,148 10,612 10,736 9,222 FY19 FY20 Districts FY21 --States FY22 FY23 FY19 Branches FY20 Satin Employees FY21 SFL-JLG Employees FY22 FY23 Loan Officers Clients (Lacs) AUM (Rs. crore) Satin SFL-JLG Satin SFL-JLG 35.5 34.6 4.0 3.7 30.5 28.1 28.3 3.9 2.6 3.5 7,068 604 8,174 704 8,379 748 9,115 7,617 724 456 31.5 30.8 26.6 24.5 25.6 FY19 FY20 FY21 FY22 FY23 7,929 7,220 7,275 6,374 6,409 FY19 FY20 FY21 FY22 FY23 Note: (1) Data on Consolidated basis. On a standalone basis, the number of branches were 1,078; (2) Data on a consolidated basis. On a standalone basis the number of loan officers were 6,125; (3) Consolidated figures includes Satin Housing Finance Limited and Satin Finserv Ltd. as well. ⑥SATT SATIN 34#35Business Details - Consolidated SATI ATIN Particulars AUM (Rs. crore) Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% 9,115 7,617 19.7% 7,945 14.7% SCNL 7,929 6,409 23.7% 6,798 16.6% On-book AUM* 5,650 5,145 4,791 Assignment 2,258 1,204 1,985 Business Correspondence 21 60 22 SHFL 505 318 383(1) SFL - JLG 456 724 563 SFL - MSME 226 166 200 AUM Mix (Rs. crore) 9,115 7,617 19.7% 7,945 14.7% MFI Lending 7,492 5,975 6,953 Business Correspondence 477 784 586 Product Financing 23 22 26 MSME 618 519 608 Housing Finance 505 318 383 No. of Branches 1,287 1,224 5.1% 1,260 2.1% SCNL SHFL SFL - JLG SFL - MSME 1,078 1,029 1,057 30 21 28 157 158 157 22 16 18 Note: * Includes securitization, differences due to rounding off 1) The portfolio also includes Assigned portfolio of Rs. 44 crore 35#36Key Standalone Financials Gross Income (Rs. crore) 1,401 1,262 1,273 1,762 Cost to Income Ratio (%) SATIN C ⑥SATT 64.8% 58.0% 53.8% 49.7% FY20 FY21 FY22 FY23* FY20 FY21 FY22 FY23 NII PAT NII and PAT (Rs. crore) 824 659 656 FY20 156 FY21 -14 FY22 40 1,186 264 FY23* *There is an extraordinary income on account of fair value change for investment in subsidiaries amounting to Rs. 352 crore during Q1FY23 Opex to Avg AUM (%) 6.2% 6.0% 5.3% 6.3% FY20 FY21 FY22 FY23 36#37Financial Details (Standalone)#38Annexure Financial Performance - Standalone - Particulars (Rs. crore) FY23 FY22 Q4FY23 Q4FY22 Q3FY23 Gross yield (1) 24.57% 18.44% 21.57% 21.10% 22.85% Financial Cost Ratio (2) 8.04% 8.86% 7.93% 9.53% 8.76% Net Interest Margin (3) 16.54% 9.58% 13.64% 11.57% 14.09% Operating Expense ratio(4) 6.25% 6.20% 6.14% 7.04% 6.63% Loan Loss Ratio(5) 5.53% 2.51% 0.66% 2.98% RoA (6) 3.52% 0.53% 4.90% 3.27% 2.92% RoE(8) 15.02% 2.60% 20.30% 15.48% 12.41% Leverage (Total Debt (7) / Total Net Worth) 2.9x 3.4x 2.9x 3.4x 3.1x Cost to Income Ratio^ 37.80% 64.76% 45.00% 60.82% 47.06% Asset Quality (on-book) GNPA % ECL % FY23 FY22 Q4FY23 Q4FY22 Q3FY23 3.28 8.01 3.28 8.01 3.92 2.10 6.70 2.10 6.70 2.93 Gross Yield represents the ratio of total Income in the relevant period to the Average AUM; adjusted gross yield (excluding extraordinary income of Rs. 352 crore) for FY23 is 19.66% Financial Cost Ratio represents the ratio of interest Expense in the relevant period to the Average AUM Net Interest Margin represents the difference between the Gross Yield and the Financial Cost Ratio; adjusted NIM (excluding extraordinary income of Rs. 352 crore) for FY23 is 11.62% Operating Expenses Ratio represents the ratio of the Operating Expenses (expenses including depreciation but excluding Credit Cost and interest Expense) to the Average AUM Loan Loss Ratio represents the ratio of credit cost (including FLDG on BC) to the Average AUM 1. 2. 3. 4. 5. 6. RoA is annualized and represents ratio of PAT to the Average Total Assets 7. Total Debt includes Securitization and preference shares considered as debt in accordance of IndAS 8. RoE is annualized and represents PAT to the average equity ^Cost to Income is low on account of extraordinary gain on fair value change for investment in subsidiaries amounting to Rs. 352 crore during Q1FY23; adjusted for FY23 is 53.78% ATIN 38#39Annexure - Particulars (Rs. crore) P&L Statement - Standalone Q4FY23 Q4FY22 YoY% Q3FY23 QoQ% FY23 FY22 YoY% Revenue Interest and Fee Income 298 263 268 1,094 1,109 Gain due to DA 69 39 88 210 50 Treasury Income 14 22 11 413 65 BC Income 0 2 0 4 19 Other Operating Income 15 5 10 41 19 Total Revenue 397 331 20.1% 377 5.2% 1,762 1,262 39.6% Expenses Finance Cost 146 149 145 576 606 Employee Benefit Expenses 82 83 77 316 324 Credit Cost & FLDG for BC 12 -13 49 396 172 Other Expenses 23 23 29 116 87 Depreciation and amortization 7 3 3 16 13 expense Total Expenses 271 246 303 1,421 1,203 Profit Before Tax 126 84 49.6% 74 70.2% 341 59 474.5% Tax expense 32 25 19 77 19 Profit After Tax 94 60 58.5% 55 71.2% 264 40 557.1% Other comprehensive income net of taxes 2 -20 -19 -29 Total Comprehensive Income 94 62 35 245 11 *includes an extraordinary income on account of fair value change for investment in subsidiaries amounting to Rs. 352 crore during Q1FY23 ⑥SATI ATIN 39#40Financial Details (Subsidiaries)#41Annexure - P&L Statement - SHFL ⑥SATT SATIN Particulars (Rs. crore) Q4FY23 Q4FY22 Q3FY23 FY23 FY22 Revenue Interest and Fee Income 16.4 10.1 12.8 52.9 34.3 Treasury Income 0.6 0.2 0.5 2.0 0.8 Other income 2.5 1.4 3.3 7.0 3.0 Total Revenue 19.5 11.7 16.5 61.9 38.0 Expenses Finance cost 8.0 5.3 7.2 28.2 17.1 Employee benefit expenses 4.5 3.3 4.6 18.0 11.9 Credit Cost 1.2 0.1 0.4 2.0 1.0 Other expenses 1.3 1.1 1.6 5.4 3.5 Depreciation and amortization 0.1 0.1 0.1 0.4 0.3 expenses Total Expenses 15.1 9.9 14.0 54.0 33.8 Profit Before Tax 4.4 1.8 2.5 7.8 4.3 Tax expense 1.0 0.7 0.7 1.9 1.2 Profit After Tax 3.3 1.1 1.8 5.9 3.0 Other comprehensive income 0.0 0.3 -1.5 -1.5 0.0 Total Comprehensive Income 3.3 1.5 0.2 4.4 3.0 41#42Annexure - P&L Statement - SFL Particulars (Rs. crore) Revenue Interest and Fee Income Treasury Income Other income Total Revenue Expenses ⑥SATT SATIN Q4FY23 Q4FY22 FY23 FY22 25.6 26.3 102.6 90.5 0.6 0.9 2.9 3.4 0.2 0.3 1.0 3.2 26.4 27.5 106.5 97.1 Finance cost Employee benefit expenses Credit Cost Other expenses 5.4 3.9 18.5 12.5 13.0 13.9 53.3 56.9 0.9 0.3 3.8 4.1 4.2 12.4 20.9 48.5 Depreciation and amortization expenses 0.4 0.5 1.7 2.0 Total Expenses 23.8 31.0 98.3 124.1 Profit Before Tax 2.6 -3.5 8.2 -27.0 Tax expense 0.7 -0.8 2.2 -6.9 Profit After Tax 1.9 -2.7 6.1 -20.1 Other comprehensive income -0.1 0.3 -0.1 0.1 Total Comprehensive Income 1.8 -2.4 6.0 -20.0 42 Data for combined entity#43Company Background#44Key Milestones Business Timeline 2016 2017 2018 2019 2023 Started MSME Lending in FY17; Acquired TFSL in Sep'16 Reached 27.1 lacs active clients and AUM of Rs. 4,882 crore by Dec'17 SHFL commenced lending in Feb18; BC agreement with IndusInd Bank, reached AUM of Rs. 5,757 crore by Mar'18 Received NBFC license for Satin Finserv Ltd for MSME business; reached AUM of 1 Bn USD; TFSL became wholly owned subsidiary AUM crossed milestone of Rs. 9,000 crore; Satin Finserv Limited and Taraashna Financial Services Limited merged effective Mar'23 2015 2014 2013 2012 2010 ATIN ⑥SATT Listing on NSE, BSE and CSE (2); Received top MFI grading of MFI 1 Reached 8 lacs active clients and AUM of Rs.1,056 crore as on Mar'14; Reached 4.9 lacs active clients & AUM of Rs. 580 crore as on Mar'13; Converts to NBFC-MFI in Nov'13; Received 'MFI 2+'rating by CARE Starts SHG bank linkage program in Rewa, MP; Receives 83% in microfinance COCA audit Reached 1.7 lacs active clients and gross AUM of Rs.169 crore as on Mar'10 1990 1996 1998 2008 Date of inception of Satin- October 16, 1990 IPO and listing on DSE, JSE and LSE(1) Registers as NBFC with the RBI Started JLG Model in May 2008 2009 JLG business shows strong asset quality and large potential to scale up Note: 1. Regional Stock Exchanges (DSE - Delhi Stock Exchange, JSE - Jaipur Stock Exchange, LSE- Ludhiana Stock Exchange); (2) BSE - BSE Limited, NSE - National Stock Exchange of India Limited, CSE - The Calcutta Stock Exchange Limited 44#45Key Milestones Fund Raising Timeline 2015 2016 2017 2018 Raised Rs. 41.5 crore from SBI FMO (3) (including warrants); Rs.37.9 crore infused by Promoter Group Raised Rs. 250 crore via QIP in Oct'16; Exit of DMP in Jul'16 and ShoreCap in Aug'16 In Apr'17, raised $10 mn from ADB(4) ; Investment of Rs. 35 crore by IDFC First Bank (then Capital First); Raised Rs. 150 crore via QIP in Oct'17 Pref. Allotment: Equity funding by NMI (Rs. 20 crore), and Kora Cap (Rs. 80 crore); Promoter invested via FCW (Rs. 60 crore), IndusInd invested Rs. 45 crore via OCCRPS 2013 2012 2011 2010 2019/ 20 Exit of MV Mauritius ■ Raised Rs. 120 crore by Rights Issue 2009 2022 ⑥SATI SATIN Successfully completed preferential issue of Rs. 225 crore by issue of shares and fully convertible warrants Received Rs. 137 crore till date 2008 Raised Rs. 30 crore from DMP, ShoreCap and MV Mauritius Ltd; Rs.11 crore infused by Promoter Group; Exit of Lok Capital " Raised floating rate long term unsecured Tier II debt in Jul'14; Raised Rs. 28.4 crore of equity from NMI and $10 mn of debt from World Business Capital as ECB Raised Rs. 18 crore from Danish Micro Finance Partners K/S (DMP) in Feb'11 Raised Rs. 2.5 crore from Lok Capital in Nov 10 and Rs. 21.8 crore from ShoreCap Il in Dec'10; Rs. 7.7 crore infused by Promoter Group Raised Rs. 1.9 crore from Lok Capital First private equity investment Raised Rs. 4.87 crore from Lok Capital; Rs. 1 crore infused by Promoter Group Note: (3) SBI FMO Emerging Asia Financial Sector Fund Pte. Limited; (4) ADB - Asian Development Bank 45#46The history of SCNL goes back to 1990 when it started providing finance to the shopkeepers who were deprived of formal financing ⑥SATT SATIN Fostering Inclusive Growth Hv Kil Today, after three decades of rich experience, SCNL has emerged as one of the leading and trusted Indian microfinance companies Headquartered in Gurugram, Haryana, the Company drives inclusive growth by offering financial tools that help create opportunities Through its financial solutions outside the periphery of traditional channels of finance, the Company empowers the unserved and the underserved sections of the society 46 46#47Our Business Model Follow up loans Formation of Groups Centre Meeting and Collection Process 06 05 Documentation and Paper work 01 02 MICROFINANCE & BEYOND Income Generating Loans (IGL) Long Term Loans (LTL) Training of Groups 03 04 Housing Finance Micro Small & Medium Enterprises (MSME) Loan Sanction Visionary Management backed by Professional Team Established track record of delivery through vast branch network Strong client relationship built on transparent practices & internal controls Low-risk lending aimed at income generation Diversification by product & geography Proprietary IT platform & technology prowess ⑥SATT SATIN Social impact financing of solar lamps, bicycles, water and sanitation facilities etc. Business Correspondence Large marquee institutional investor base Comfortable liquidity and CRAR CREATING A NICHE BY BEING A ONE-STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS 47#48...With Customised Products as per Client Needs CSATE SATIN Income Generation Loan (Prarambh) Ticket Size : Rs. 10,000 Rs. 40,000 Tenure: 12-24 months Long Term Loan (Vriddhi) Ticket Size : Rs. 31,000 Rs. 75,000 Tenure: 30 months Product Financing Ticket Size : Rs. 2,000 Rs. 32,000 Tenure: 6-24 months WASH Loan Ticket Size : Rs. 10,000 Rs. 35,000 Tenure 12 - 24 months • Annual Household Income: up to Rs. 3 Lacs Eligibility Criteria • The outflows limit of 50 per cent of the monthly household income shall include repayment towards all existing loans as well as any loan under consideration * Household shall mean an individual family unit, i.e. husband, wife and their unmarried children. • Maximum monthly loan repayment obligation (incl. applied loan): <=Rs. 12,500. • OTP & Bank validation 48#49SDGs in the Core of Our Community Connect Activities ⑥SATT SATIN Supported education of less privileged students at GNA University, Punjab GRUVERSITY 4 Supported the construction of a primary school/coaching center in the village of Harswara, Uttar Pradesh, for the poor and marginalized children of the region 10 Construction of Girls Hostel to provide better education opportunities in a safe environment Supported MFIN initiatives of Medical Health Camps in 18 districts of Assam to provide relief to flood affected communities QUALITY EDUCATION REDUCED INEQUALITIES 3 GOOD HEALTH AND WELL-BEING GROWING FOOTPRINTS Building a Difference to Make a Difference 49#50Awards and Accolades ■ Mr. HP Singh was conferred as the 'Pillar of the BFSI Industry' bestowed at the Financial Express Modern BFSI Summit 2022 Mr. HP Singh received the 'CEO of the Year - Micro Finance Company' Award Mr. HP Singh was conferred the 'Best CEO of the Year' at Golden Globe Tigers virtual awards ceremony in Malaysia Ms. Manvinder Kaur & Mr. Bharat Singh were recognized as 'Great Managers 2022' at the Great Managers Award Mr. Subir Roy Chowdhury was awarded for his 'Outstanding Contribution during Covid-19 in Motivating Staff' by UPMA Ms. Aditi Singh was awarded as 'Social Impact Leaders and Change Makers 2021' by BW Disrupt Mr. Sunil Yadav recognized among the 'Top 100 BFSI Leaders' in India by Trescon, India ⑥SATE SATIN Great Place To WorkⓇ Certified FEB 2023 - FEB 2024 INDIA TH April 2023 Awarded Emerging Name in Business Transformation at the Elets Excellence Award, March 2023 Recognized as Top 25 India's Best Workplaces across the BFSI Industry by GPTW, India March 2023 Listed among India's Top 50 Best Workplaces for building a culture of innovation by GPTW, India February 2023 Awarded Best Education Support Initiative 2023 at the Social Impact Awards 2023 February 2023 SCNL Annual Report Awarded Gold Industry Spot and ranked 35th at the Vision Award by LACP, USA February 2023 Awarded Best Digital Transformation Initiative Award by Quantic, India February 2023 Won ET Excellence Award for Best Operational Excellence of the year for the initiative, Train the Trainers February 2023 Certified Great Place to work for the fourth time in a row 50 *UPMA - Uttar Pradesh Microfinance Association#51Contact Information Ms. Aditi Singh Head Strategy Company (Investors & Media): E: [email protected] T: +91 124 4715 400 Ms. Shweta Bansal DGM Investor Relations E: [email protected] T: +91 124 4715 400 www.satincreditcare.com ⑥SATT SATIN