#1Investor Presentation Housing Development Finance Corporation HDFC WITH YOU, RIGHT THROUGH#2CONTENTS • HDFC Snapshot • • Mortgage Market in India Operational and Financial Highlights: Mortgages Shareholding • Financials: Standalone • Key Subsidiaries and Associates • . Financials: Consolidated Environmental, Social & Governance & Other Initiatives HDFC WITH YOU, RIGHT THROUGH 2#3HDFC SNAPSHOT. HDFC WITH YOU, RIGHT THROUGH Amount Value 6% 20% O/Confirmed Au/22025 Me2200 8% ANALYSIS 2 ANA 22% ** YI JU#4• WHO WE ARE... Incorporated in 1977 as the first specialised mortgage company in India HDFC Market capitalisation*: US$ 63 bn 52.62% HDFC WITH YOU, RIGHT THROUGH 49.98% Life Market capitalisation*: US$ 18 bn Ranks 1st in overall new business premium amongst private players HDFC MUTUAL FUND Market capitalisation*: US$ 7 bn Ranks amongst the top 3 AMCs with total AUM of US$ 59 bn HDFC ERGO Ranks amongst the top 3 private players in general insurance 21.02% 47.82% HDFC • Now a financial conglomerate HDFC BANK • with interests beyond mortgages 72% shares held by foreign investors Market capitalisation*: US$ 110 bn ADRs listed on NYSE *As at December 31, 2021 US$ amounts converted based on exchange rate of US$ 1 = Rs. 74.34 100% 100% <> HDFC SALES Financial services distribution company Sources more than half of HDFC's home loans HDFC CREDILA The Education Loan Specialist India's first dedicated education loan company with outstanding loan book of US$ 1.1 bn 100% GHDFC PROPERTY FUND HDFC CAPITAL Property funds: of which US$ 3 bn is committed for development of affordable housing 4#5HDFC WITH YOU, RIGHT THROUGH BUSINESS SUMMARY • Loans Outstanding (Gross loans) • (As at December 31, 2021) Individual Loans Originated CAGR (5 years) . Cumulative Housing Units Financed • • Cost to Income Ratio (excluding notional cost of Employee Stock Option Scheme & Corporate Social Responsibility Expenses) Unaccounted gains on listed investments in subsidiary and associate companies Rs. 6,189.17 bn : US$ 83.25 bn : 16% : 9.0 million : 8.1% Rs. 2,499.14 bn : US$ 33.62 bn Consolidated Profit After Tax CAGR (5 years) : 21% 5#6IMPACT OF COVID-19 HDFC WITH YOU, RIGHT THROUGH • • ☐ • Q1 FY22 witnessed an eruption of a second wave of Covid-19 in India. Post that, there was a sharp recovery in business. In January 2022, the third wave of Covid-19 resulted in a rise in infections, but with considerable less severity and did not result in any material impact on business. The demand for housing continues to remain strong During Apr-Dec FY22, individual loan approvals and disbursements grew by 45% and 48% respectively over the corresponding period in the previous year Scale up on all digital platforms for borrowers, depositors, channel partners and deposit agents, amongst others 89% of new loan applications were received through the digital mode 61% of retail deposits digitally on-boarded Total provisions carried as at December 31, 2021 stood at Rs. 131.95 billion, compared to the regulatory requirement of Rs. 74.50 billion. Covid-19 provisioning stood at Rs. 11.87 billion Total loans restructured under the RBI's Resolution Framework - OTR 1.0 & 2.0, amounted to 1.3% of the loan book. 34% of the loans restructured is in respect of one account, where resolution is underway. Post further recovery in Jan/Feb 2022 in this one account, the restructured book stands at 1.1% of the loan book. 6#7HDFC WITH YOU, RIGHT THROUGH • . • HIGHLIGHTS - Q3 FY22 Growth in home loans was seen in both, the affordable housing segment as well as in high income groups The average collection efficiency for individual loans on a cumulative basis for the quarter ended December 31, 2021 was 98.9% On November 12, 2021, the Reserve Bank of India issued guidelines on harmonising NPAs across the financial system Reported NPAs increased in line with the revised guidelines whilst credit costs reduced to 27 basis points on an annualised basis Reduction in aggregate of Stage 2 and Stage 3 assets from 9.2% in June 2021 to 7.8% of the Exposure at Default as at December 31, 2021 Impact on Net Interest Income RBI has introduced a Liquidity Coverage Ratio (LCR) which has to be invested in High Quality Liquid Assets (HQLA) Liquidity buffer of ~ Rs. 550 bn, comprising Rs. 270 bn in HQLA, Rs. 130 bn held in HQLA for Statutory Liquidity Ratio and balance for general liquidity purposes Uncertainty on eligibility of SLR holdings for LCR purposes. Post receipt of clarifications, (wherein 80% of SLR holdings qualify for LCR purposes), the revised HQLA requirements are Rs. 110 bn lower Impact of negative carry, which shall be brought down in the subsequent quarter#8HDFC WITH YOU, RIGHT THROUGH MORTGAGE Click here for more information NEXT MORTGAGE MARKET IN INDIA D 9 2 11 9 P&B . 4 9 4 4 C e 4 3117 2 2 3 O L 41 NO 9 9 K L i 2 return N 1 NA shuty eplion#9DRIVERS OF MORTGAGE GROWTH . Improved Affordability • Low Penetration • Government Incentives ■ Enhanced Fiscal Benefits ■ Credit Linked Subsidy Scheme Other Demand Drivers HDFC WITH YOU, RIGHT THROUGH 9#10IMPROVED AFFORDABILITY Best affordability in 2.5 decades Government support towards housing has helped improve affordability 60 50 40 40 Property Value (Rs. 100,000) & Affordability 50 30 20 20 10 10 22.0 0 15.6 11.1 8.3 6.6 5.9 5.3 5.1-4.7 4.3 4.7 5.0 5.1 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Property Cost Representation of property price estimates Based on customer data 2006 2007 5.1 4.5 4.7 4.8 4.6 4.7 4.6 4.4 4.1 3.8 3.7 3.5 3.3 3.2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Affordability Annual Income Affordability equals property prices by annual income HDFC WITH YOU, RIGHT THROUGH 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Annual Income (Rs. 100,000) 100#11LOW PENETRATION IMPLIES ROOM FOR GROWTH MORTGAGES AS A PERCENT OF NOMINAL GDP 100% 80% 60% 40% 20% 0% India 11% China 89% 83% 68% 52% 56% 45% 44% 39% 34% 18% 20% Thailand Malaysia Japan Singapore Germany USA Australia Source: European Mortgage Federation, Hofinet & HDFC estimates for India. Note: India's lower GDP resulted in an increase in the mortgage to GDP ratio. UK Denmark Netherlands 11 HDFC WITH YOU, RIGHT THROUGH#12GOVERNMENT/REGULATORY INITIATIVES Government Incentives Liquidity Measures HDFC WITH YOU, RIGHT THROUGH Supply Side Incentives Tax incentives on interest and principal amount for home loan borrowers Increased budget allocations for housing for both, low and middle income groups Liquidity schemes and special refinance facilities for Non-Banking Financial Companies - Housing Finance Companies Incentives to developers to build affordable housing 'Infrastructure' status accorded to affordable housing External Commercial Borrowings/Rupee Denominated Bonds Issued Overseas 12#13TAX INCENTIVES HAVE LOWERED THE EFFECTIVE RATES ON MORTGAGES HDFC WITH YOU, RIGHT THROUGH FY 2021 FY 2002 FY 2000 Loan amount 3,230,000 3,230,000 3,230,000 Nominal Interest Rate (%) 6.70% 10.75% 13.25% Max deduction for interest allowed 200,000 150,000 75,000 Deduction on principal 150,000 20,000 20,000 Tax rate 30.90% 31.50% 34.50% Tenor (years) 20 20 20 Total amount paid per year 366,410 359,400 421,068 Interest component 216,410 347,225 427,975 Principal repaid 150,000 12,175 (6,907) Tax amount saved 108,150 53,550 32,775 Effective interest paid on home loan 108,260 293,675 395,200 Effective interest on home loan 3.4% 9.1% 12.2% 13#14HDFC WITH YOU, RIGHT THROUGH OTHER DEMAND DRIVERS • Favourable Demographics: 66% of India's population is below 35 years of age, hence large potential for home loans • Nuclear Households: Rise in the number of households with a shift towards nuclear families • Urbanisation: Currently 32% of the Indian population reside in cities; estimated to be 40% by 2030 • Interest Rates: Improved affordability through rising disposable incomes and lowest ever interest rates on home loans 14#15HDFC WITH YOU, RIGHT THROUGH www Paytona AT Matistic 2124 13,678 $0.789 2020 2021 OPERATIONAL & FINANCIAL HIGHLIGHTS: MORTGAGES 11,892 Total Sates#16CORE BUSINESS – LENDING - (As at December 31, 2021: Gross Loans - US$ 83.25 bn) INDIVIDUAL LOANS ⚫ Home Loans- Fixed rate loans Individuals 79% Floating rate loans • Home Improvement Loans • Home Extension Loans • Home Equity Loans Lī HDFC WITH YOU, RIGHT THROUGH Corporate 5% Construction Finance 9% Lease Rental Discounting 7% • Rural Home Loans • Loans to NRIs Individuals Corporate Construction Finance Lease Rental Discounting Loan Book Outstanding As at December 31, 2021 (After Sell Down) Loan Book o/s Before Sell Down in last 12 months Assets Under Management Rs. bn US$ bn % Growth Rs. bn US$ bn % Growth Individuals Non-Individuals Total 4,084 55 16% 4,359 59 24% Rs. bn US$ bn % Growth 4,881 65 16% 1,306 18 -1% 1,306 18 -1% 1,308 18 -1% 5,390 73 11% 5,665 77 17% 6,189 83 12% Individual loans sold (outstanding):. Rs. 797.48 bn (US$ 10.73 bn) 16#17HOUSING ACROSS INCOME GROUPS Housing Loan Approvals Based on Income Slabs Apr-Dec FY22 In Value terms HIG 44% MIG 43% In Number terms HDFC WITH YOU, RIGHT THROUGH MIG O HIG 22% LIG / EWS 30% LIG / EWS 13% 48% Economically Weaker Section: Up to Rs. 0.3 mn p.a Middle Income Group: Above Rs. 0.6 mn to Rs. 1.8 mn p.a. Housing Loans to EWS & LIG Segments • • Low Income Group: Above Rs. 0.3 mn to Rs. 0.6 mn p.a. High Income Group: Above Rs. 1.8 mn p.a. 30% of home loan approvals in volume terms and 13% in value terms has been to the EWS & LIG segments Average home loan - EWS: Rs. 1.11 mn, LIG: Rs. 1.95 mn Credit Linked Subsidy Scheme (CLSS): HDFC has the highest number of beneficiaries at over 270,000, with cumulative disbursements of Rs. 459 bn and a subsidy amount of Rs. 63 bn. 17#18INDIVIDUAL LOANS Apr-Dec FY22* Employment Employed 79% Acquisition Mode Self- construction 9% Self- Employed (incl: professionals) 21% Resale 37% Employed Self-Employed (incl: professionals) *Based on value of approvals HDFC WITH YOU, RIGHT THROUGH Geographic Speed West 35% First Purchase 54% North 28% South 33% Resale ■Self-construction First Purchase East 4% East West North South 18#19SCALE & SPEED THROUGH DIGITALISATION . Growing trend of digital on-boarding of customers Li HDFC WITH YOU, RIGHT THROUGH • • • • • Reimagined on-boarding journey with both, mobile and web Digital on-boarding enabled for channel partners Customers digitally on-boarded and go through a paperless approval process Use of QR codes to help customers access the digital platform 89% of new loan customers and 61% retail deposits on-boarded digitally Focused targeting and lead nurturing across multiple digital channels/platforms using SaaS based marketing solutions, thereby increasing effectiveness of marketing campaigns Use of technology solutions and fintech integrations at various stages of underwriting, enabling speedy processing of applications and fraud detection Machine Learning (ML) based lead scoring model Advanced conversational chatbot with Natural Language Processing (NLP) and ML technology, backed by live chat to address customers' servicing and new loan requirements 24X7 HDFC's website in six vernacular languages, besides English to serve the needs of customers in Tier II, Tier-III cities and rural areas 19#2082% OF OUR MORTGAGES ARE SOURCED BY OURSELVES OR THROUGH OUR AFFILIATES HDFC WITH YOU, RIGHT THROUGH December 31, 2021 Other Direct Selling Agents 18% HDFC Bank 28% DIGITAL CHANNELS FOR CUSTOMERS • Using digital and social media marketing strategies and tools to reach out to customers •⚫ Lifecycle management for upselling and cross-selling products to HDFC's existing customers using advanced predictive analytical tools and marketing automation platforms • Customer queries and service requests fulfilled through 'Customer Connect' - HDFC's digital servicing platform Direct Walk-ins 2% Deposit & loan products offered at several locations through outreach programmes. Total number of offices: 651 which is inclusive of 206 outlets of HDFC Sales Limited HDFC Sales Private Limited 52% 20 20#21HDFC WITH YOU, RIGHT THROUGH · . • • OUR CONSERVATIVE LOAN PROFILE UNDERLIES OUR HIGH CREDIT QUALITY Average Loan Size Average Loan to Value Average Loan Term Average Age Primary Security Repayment Type : Rs. 3.23 mn (~US$ 43,500) : 69% (at origination) : 11 years : 38 years : Mortgage of property financed : Amortising 21 24#22Percentage GROSS NON-PERFORMING LOANS (NPLs) & PROVISIONS CARRIED 2.56% 2.56% 3.00% 2.45% 2.32% 2.50% 1.91% 2.00% 2.00% 1.50% 1.00% 0.50% 0.00% Dec-20 Sep-21 Dec-21* ■GROSS NPLs ■PROVISIONS CARRIED AS % OF EAD** HDFC WITH YOU, RIGHT THROUGH As at December 31, 2021 NPLs (90 days): (Rs. in bn) 124.19 Provisions Carried: 131.95 of which Covid-19 Provisioning: 11.87 Regulatory provision as per period of default & standard assets: 74.50 NPLS - Dec 31, 2021 More than 90 dpd Individual Loans 1.14% Less than 90 dpd but classified as NPL 0.30 Total 1.44%* Non-Individual Loans Overall NPLs 3.87% 1.81% 1.17% 5.04% 0.51% 2.32% *Prior period NPLs are not comparable due to change in classification norms by the Reserve Bank of India in Nov-21 **EAD: Exposure at Default 22 22#23EXPECTED CREDIT LOSS (ECL) BASED ON EXPOSURE AT DEFAULT (EAD) HDFC WITH YOU, RIGHT THROUGH As per IndAS Exposure at Default Stage 1 Stage 2 Stage 3 Rs. in billion Dec-21 Sep-21 Jun-21 92.1% 91.3% 90.8% 5.2% 6.2% 6.6% 2.7% 2.5% 2.6% Coverage Ratio (ECL/EAD) Stage 1 0.27% 0.30% 0.24% Stage 2 17.00% 14.96% 17.55% Stage 3 49.00% 54.84% 48.31% ECL/EAD 2.45% 2.56% 2.64% 23 23#24Percentage MULTIPLE SOURCES OF BORROWINGS (As at December 31, 2021: Total Borrowings - US$ 65.78 bn) HDFC WITH YOU, RIGHT THROUGH 100% 4% 3% 3% 80% 45% 43% 41% External Commercial Borrowings ■Debentures & Securities 60% Term Loans 40% 19% 20% 24% Deposits 20% 32% 34% 32% 0% Dec-19 Dec-20 Dec-21 Total Borrowings: Rs. 4,890.02 bn (US$ 65.78 bn) 24#25LOAN SPREADS HDFC WITH YOU, RIGHT THROUGH 12.00% 2.40% 10.29% 10.18% 10.00% 8.99% 2.35% 2.30% 8.09% 2.29% 8.00% 2.27% 2.30% 6.00% ◇ 2.26% 2.25% 4.00% 7.99% 7.91% 2.20% 6.70% 5.83% 2.00% 2.15% 0.00% 2.10% FY19 FY20 FY21 Apr-Dec21 Return on Loans Cost of Borrowings >>Spread Apr-Dec21 Spread earned on: Individual Loans 1.93% Non-individual Loans 3.25% Loan Book 2.26% 25#26Rs. in billion MATURITY PROFILE (As at March 31, 2021) 3,000 2,500 2,000 1,500 1,264 1,133 1,000 500 2,705 2,443 2,230 1,837 0 Up to 1 yr >1-5 yrs Over 5 yrs Assets ■Liabilities The above graph reflects adjustments for prepayments and renewals in accordance with the guidelines issued by National Housing Bank. HDFC WITH YOU, RIGHT THROUGH 26#27PRODUCTIVITY RATIOS Dec-21 Dec-20 HDFC WITH YOU, RIGHT THROUGH Number of employees 3,514 Number of outlets 3,181 445 387 Profit per employee (US$ '000)* 513 499 Assets per employee (US$ mn) 23.1 22.8 Admin costs/assets (%)^ 0.25 0.25 Cost income ratio (%)^ 8.1 8.1 ^Excluding notional cost of ESOS and CSR expenses 27 27#28KEY FINANCIAL METRICS HDFC WITH YOU, RIGHT THROUGH Dec-21 Dec-20 Net Interest Margin (%) 3.6 3.5 Pre-Tax RoAA (%) 2.9 2.8 Post Tax RoAA (%) 2.3 2.3 Return on Tier 1 Capital (%) 15.0 16.2 Capital Adequacy (%) 22.4 20.9 Of which Tier 1 (%) 21.7 19.9 Tier II (%) 0.7 1.0 28#29200 VALUATION & 1095 SHAREHOLDING 210.95 149.16 23.26 18:92 1.41% HDFC WITH YOU, RIGHT THROUGH 208.87 14.235:01- 0.00 25,187.70 12.358 20 27.598 4119 31 May June Se#30VALUATION – METHOD 1 • Number of shares outstanding: 1.81 billion • Share Price (CMP as at December 31, 2021): Rs. 2,587 • Market Capitalisation: Rs. 4,685 billion (~US$ 63 bn) Rs. bn US$ bn Net Worth 1,154 15.5 Add: Unaccounted gains on strategic 2,499 33.6 listed investments Add: Unaccounted gains on unlisted 212 2.9 investments Adjusted Networth 3,865 52.0 Market Capitalisation 4,685 63.0 Adjusted Price to Book Ratio 1.2 1.2 HDFC WITH YOU, RIGHT THROUGH 30#31• VALUATION – METHOD 2 - Number of shares outstanding: 1.81 billion. Share Price (CMP as at December 31, 2021): Rs. 2,587 • Market Capitalisation: Rs. 4,685 billion (~US$ 63 bn) Valuation Rs. bn US$ bn Market Capitalisation 4,685 63.0 Add: Unaccounted gains on strategic 2,499 33.6 listed investments Add: Unaccounted gains on unlisted 212 2.9 investments Adjusted Market Capitalisation 1,974 26.6 Net Worth (adjusted for dividend) 1,154 15.5 Adjusted Price to Book Ratio 1.7 1.7 HDFC WITH YOU, RIGHT THROUGH 31#32SHAREHOLDING PATTERN (As at December 31, 2021) 72% 2% 7% 10% HDFC WITH YOU, RIGHT THROUGH 9% ■Foreign Shareholders - 72% Individuals 9% ■Mutual Funds - 10% Financial Institutions, Banks & Insurance Companies - 7% Companies - 2% 32#33FINANCIALS STANDALONE (BASED ON INDIAN ACCOUNTING STANDARDS) HDFC WITH YOU, RIGHT THROUGH#34BALANCE SHEET (Standalone) Dec-21 Dec-20 Growth (Rs. in billion) (Rs. in billion) (%) Sources of Funds Shareholders' Funds 1,154.00 1,060.80 Borrowings 4,890.02 4,339.17 13% Current Liabilities & Provisions 190.18 205.09 6,234.20 5,605.06 11% Application of Funds Loans (before provisions) ^ 5,389.94 4,839.19 11% Investments Current/Fixed Assets 817.64 26.62 6,234.20 716.86 14% 49.01 5,605.06 11% HDFC WITH YOU, RIGHT THROUGH ^Net of loans sold during the preceding 12 months amounting to Rs. 275.91 billion of individual loans. If these loans were included, the growth in loans would have been 17%. 34#35STATEMENT OF PROFIT AND LOSS - Apr-Dec FY22 (Standalone) Li HDFC WITH YOU, RIGHT THROUGH Apr-Dec-21 Apr-Dec-20 Net Interest Income Add: Net gain on derecognition of assigned loans Add: Other Operating Income Net Operating Income (Rs. in billion) (Rs. in billion) 125.19 109.43 Growth (%) 14% 6.20 7.53 2.32 1.97 133.71 118.93 Less: Non Interest Expenses 10.87 9.63 Less: Amortisation of ESOS and CSR Expenses 4.72 3.37 Add: Other Income 0.25 0.16 Profit Before Sale of Investments, Dividend, Fair Value 118.37 106.09 Changes and ECL Add: Net gain/(loss) on Fair Value Changes 6.72 4.90 Add: Dividend 13.83 6.23 Add: Profit on Sale of Investments 2.63 13.98 Less: Expected Credit Loss (ECL) Profit Before Tax Provision for Tax Profit After Tax Effective tax rate (%) 15.31 22.29 126.24 108.91 16% 25.82 20.44 100.42 88.47 14% 20.5% 18.8% 35#36STATEMENT OF PROFIT AND LOSS – Q3FY22 (Standalone) GHDFC WITH YOU, RIGHT THROUGH Oct-Dec 21 Oct-Dec 20 Growth (Rs. in billion) (Rs. in billion) (%) Net Interest Income Add: Net gain on derecognition of assigned loans Add: Other Operating Income Net Operating Income 42.84 40.05 7% 2.24 4.10 0.83 0.70 45.91 44.85 Less: Non Interest Expenses 3.69 3.32 Less: Amortisation of ESOS and CSR Expenses 1.08 2.04 Add: Other Income 0.09 0.09 Profit Before Sale of Investments, Dividend, Fair 41.23 39.58 Value Changes and ECL Add: Net gain/(loss) on Fair Value Changes 1.23 2.30 Add: Dividend 1.95 0.02 Add: Profit on Sale of Investments 1.57 Less: Expected Credit Loss (ECL) 3.93 5.94 Profit Before Tax 40.48 37.53 8% Provision for Tax Profit After Tax Effective tax rate (%) 7.87 8.27 32.61 29.26 11% 19.4% 22.0% Note: The sequential growth in NII during the 3rd quarter compared to the 2nd quarter was 4.24%. The sequential growth in the loan book during the quarter was 3.49%. 36#37KEY ASSOCIATES AND SUBSIDIARIES HDFC WITH YOU, RIGHT THROUGH#38HDFC BANK • 21.02% owned by HDFC • ADRs listed on NYSE • 5,779 banking outlets, 17,238 ATMs • Key business areas- • HDFC WITH YOU, RIGHT THROUGH Wholesale banking | Retail banking | Treasury operations Financials (as per Indian GAAP) for the nine months ended December 31, 2021 Advances as at December 31, 2021, stood at Rs. 12,609 bn - an increase of 17% over the previous year Total deposits stood at Rs. 14,459 bn - an increase of 14% over the previous year PAT (Indian GAAP): Rs. 269.06 bn – an increase of 17% over the previous year - Arrangement between HDFC & HDFC Bank HDFC Bank sources home loans for a fee Loans originated in the books of HDFC HDFC offers a part of the disbursed loans for assignment to HDFC Bank (up to 70% of loans sourced by HDFC Bank) HDFC retains a spread on the loans that have been assigned · Market Capitalisation (December 31, 2021): ~US$ 110 bn 38#39HDFC WITH YOU, RIGHT THROUGH HDFC LIFE INSURANCE COMPANY LIMITED (HDFC LIFE) • 47.82% owned by HDFC • • With effective from January 2022, Exide Life Insurance Company (Exide Life) has become a wholly owned subsidiary of HDFC Life Total premium income for the nine months ended December 31, 2021 stood at Rs. 315.4 bn growth of 23% over the previous year • HDFC Life ranked 1st in terms of overall new business premium in private sector, with market share at 21.7%. During the nine months ended December 31, 2021, the new business premium grew 26%. New Business Margin for the nine months ended December 31, 2021: 26.5% (PY: 25.6%) Indian Embedded Value stood at Rs. 295 bn as at December 31, 2021 (PY: Rs. 251 bn) Assets Under Management as at December 31, 2021 stood at Rs. 1.9 trillion, an increase of 18% over PY Solvency Ratio as at December 31, 2021 - 190% (regulatory requirement: 150%) PAT for the nine months ended December 31, 2021 (Indian GAAP): Rs. 8.50 bn (PAT impacted due to elevated claims during the pandemic and reserving for excess mortality) Product mix - Unit Linked: 26%, Non-Par Savings: 33%, Annuity: 5%, Non-Par Protection: 6%, Par: 30% . Market capitalisation (December 31, 2021): ~US$ 18 bn 39#40HDFC WITH YOU, RIGHT THROUGH • HDFC ASSET MANAGEMENT • · 52.62% owned by HDFC and Abrdn Investment Management holds 16.22% of the equity of HDFC Asset Management Total Assets under Management as at December 31, 2021, stood at Rs. 4.37 trillion (US$ 59 bn), with an overall market share of 12.1% Amongst India's largest actively managed equity mutual fund, with a market share of 11.4% as on December 31, 2021 Equity-oriented assets of HDFC MF as a proportion of total AUM was 47% Individual accounts of HDFC MF as at December 31, 2021 9.6 million live accounts 59% of total monthly average AUM is contributed by individuals Market share of 12.6% of individual monthly average AUM PAT for the nine months ended December 31, 2021 (as per Ind AS): Rs. 10.5 bn Market capitalisation (December 31, 2021): ~US$ 7 bn 40 40#41HDFC WITH YOU, RIGHT THROUGH • • • • • HDFC ERGO GENERAL INSURANCE COMPANY LTD. · · HDFC holds 49.98% and ERGO International AG holds 41.79% and Munich Health Holding AG holds 7.20% of the equity of HDFC ERGO General Insurance Company Limited (HDFC ERGO) During the year, the Corporation's board approved the sale of 4.99% stake in HDFC ERGO to HDFC Bank subject to the receipt of requisite regulatory approvals. Gross direct premium for the nine months ended December 31, 2021 stood at Rs. 95.5 bn (PY: Rs. 87.5 bn) Products: Motor, health, travel, home and personal accident in the retail segment; property, marine, aviation and liability insurance in the corporate segment; and crop insurance in rural segment Retail accounts for 60% of the total business Market share of 10.2% (private sector) and 5.9% (overall) in terms of gross direct premium for the nine months ended December 31, 2021 (Source: Gl Council) As at December 31, 2021: Solvency Ratio - 170% (as against regulatory requirement of 150%) Profit after tax for the nine months ended December 31, 2021: Rs. 3.23 bn (impacted due to higher Covid-19 losses) 41#42HDFC WITH YOU, RIGHT THROUGH HDFC CAPITAL ADVISORS LIMITED HDFC Capital Affordable Real Estate Fund (HCARE) Set up as a SEBI registered AIF in 2016 Objective: To provide long-term flexible funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding. The HCARE platform will also invest in technology companies engaged in the affordable housing ecosystem. HCARE 1 & 2 is a US$ 1.1 bn platform targeting affordable & mid-income residential projects In January 2022, HCARE achieved the initial closure of HCARE 3. Investors have committed US$ 1.22 bn to HCARE 3, focused on affordable and mid-income residential projects. Combined with potential re-investments, the total fund corpus will increase to an estimated US$ 1.88 bn. HCARE 3 combined with HCARE 1 & 2 will create a US$ 3 bn funding platform, focused on the development of affordable housing Primary investors in HCARE 1, 2 & 3 is a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA), along with the National Investment and Infrastructure Fund (NIIF) in HCARE 2 HDFC Capital Advisors is the investment manager for the funds and is one of the largest real estate fund managers in the country 42#43HDFC CREDILA . HDFC holds 100% in HDFC Credila • • · HDFC WITH YOU, RIGHT THROUGH HDFC Credila is a non-banking finance company and was the first Indian lender to exclusively focus on education loans The company lends to under-graduate and post-graduate students studying in India or abroad As at December 31, 2021 Profit After Tax (as per Ind AS): Rs. 1.44 bn - 30% growth Cumulative loans disbursed: Rs. 153 bn Loan book outstanding: Rs. 81 bn 36% of the loan book is collateralised Gross non-performing assets: 0.27% 43#44FINANCIALS CONSOLIDATED (BASED ON INDIAN ACCOUNTING STANDARDS) HDFC WITH YOU, RIGHT THROUGH#45BALANCE SHEET (Consolidated) HDFC WITH YOU, RIGHT THROUGH Dec-21 Dec-20 Growth (Rs. in billion) (Rs. in billion) (%) Sources of Funds Shareholders' Funds 1,789.41 1,613.89 11% Liabilities Pertaining to Insurance Business 2,154.39 1,885.29 Loan Funds 4,963.11 4,397.21 Current Liabilities & Provisions 237.23 243.00 9,144.14 8,139.39 12% Application of Funds Loans 5,333.09 4,771.55 12% Assets pertaining to Insurance Business 2,291.90 2,010.76 Investments 1,301.90 1,118.23 Current Assets, Advances & Fixed Assets 201.24 222.84 Goodwill on Consolidation 16.01 16.01 9,144.14 8,139.39 12% 45#46HDFC WITH YOU, RIGHT THROUGH STATEMENT OF PROFIT AND LOSS - Apr-Dec FY22 (Consolidated) Rs. in billion Apr-Dec-21 Apr-Dec-20 Interest & Other Operating Income 356.05 357.51 Growth Income from Insurance Business 633.28 654.84 Profit on Sale of Investment & Investment Properties 0.67 Net gain on fair value changes 12.81 13.50 Income on derecognised (assigned) loans 5.98 7.10 Other Income 0.29 0.22 Total Income Finance costs 1,009.08 1,033.17 203.05 224.15 Expenses from Insurance Business 625.99 638.65 Non-Interest Expenses 26.95 21.98 Impairment on financial instruments 16.35 23.09 Total Expenses 872.35 907.87 Share of profit of associates (equity method) 65.22 50.03 Profit Before Tax 201.95 175.33 15% Total tax expense 30.45 27.15 Net Profit After Tax 171.50 148.18 16% Profit Attributable to the Corporation 161.36 133.90 21% 46 46#47CONSOLIDATED PROFIT AFTER TAX - Apr-Dec FY22 (As per Ind-AS) HDFC Profit After Tax HDFC Life HDFC Ergo HDFC Bank HDFC AMC HDFC Credila Other Companies Adjustments: Profit on Sale of Investments HDFC WITH YOU, RIGHT THROUGH Apr-Dec 21 Apr-Dec 20 Growth (Rs. in billion) 100.42 (Rs. in billion) 88.47 14% 3.76 7.10 1.72 2.90 61.46 48.52 5.52 5.32 1.44 1.11 2.30 (1.12) (1.42) (13.76) 3.76 (17.60) 1.63 (6.27) 161.36 133.90 21% Adjustment on account of dilution of stake in associates Dividend & Other Adjustments Net Profit Attributable to the Corporation 47 47#48ESG HDFC WITH YOU, RIGHT THROUGH III ESG & OTHER INITIATIVES#49THE ESG WAY: ENCOMPASSING ALL STAKEHOLDERS ENVIRONMENTAL • • HDFC WITH YOU, RIGHT THROUGH ESG Ratings: HDFC's environmental impact is minimal/low risk Long-term commitment to finance affordable & green housing Focus on responsible lending • 2/3 rd of the lease rental discounting portfolio is certified as green by Indian Green Building Council or the Leadership in Energy and Environmental Design Supporting programmes for environmental sustainability, recycling, conservation, animal & wildlife protection and the ecology Employee sensitisation on environmental impact; initiatives to facilitate carbon offsets • Recycling efforts at HDFC - paper, plastic, wet waste, e-waste Launched green deposits for retail depositors in Aug 21 Contd... 49 49#50THE ESG WAY: ENCOMPASSING ALL STAKEHOLDERS SOCIAL HDFC WITH YOU, RIGHT THROUGH Shelter Assistance Reserve created in 1987: Set aside a portion of profits each year to support socially high impact projects Cumulatively financed 9.0 million housing units Focus on inclusion & diversity; employee engagement, training and wellbeing First institution to have over 0.27 mn beneficiaries under the Government's Credit Linked Subsidy Scheme HDFC primarily implements its CSR initiatives through the HT Parekh Foundation, a charitable institution set up by HDFC CSR focus areas: COVID-19 relief, healthcare, education, skilling & livelihoods, environmental sustainability Contd... 50#51THE ESG WAY: ENCOMPASSING ALL STAKEHOLDERS HDFC WITH YOU, RIGHT THROUGH III GOVERNANCE Founding principles of kindness, fairness, efficiency & effectiveness Recent Awards Felicitated under the 'Leadership' category in the Corporate Governance Score Card, 2021 under a joint initiative by IFC-liAS-BSE Best Integrated Report 2020 by Asian Centre for Corporate Governance & Sustainability 'Leadership in Employee Development' by ESGRisk.ai, India's 1st ESG rating company 'Company of the Year' at The Economic Times Awards for Corporate Excellence 2020 Golden Peacock Award for Excellence in Corporate Governance 2020 No promoter holding Well reputed, independent directors since inception; core competencies directly linked to the strategy of HDFC 51#52ESG REPORTS Report of Directors on Corporate Governance Annual Report on Corporate Social Responsibility (CSR) Activities • Business Responsibility Report • HDFC WITH YOU, RIGHT THROUGH Business Responsibility and Sustainability Report - prescribed by SEBI in May 21, voluntary for the top 1,000 companies by market cap for FY22, and mandatory from FY23 onwards. HDFC voluntarily adopted this format in FY21 itself. • Integrated Report • HDFC COVID-19 Relief Response: Impact Assessment Report Social Initiatives Report • Independent Review of HDFC's Sustainability Initiatives Reports are available on the website: https://www.hdfc.com/investor-relations#environmental-social-and-governance 62 52#53-D DASH PHILOSOPHY & DIGITALISATION OBJECTIVES Re-imagine and transform the customer journey across the lifecycle to improve customer experience and create market differentiation C ......... חוווי Li HDFC WITH YOU, RIGHT THROUGH D Digital First Personalised and digital borrower experience A Agile Methods Customer centric designs, teams collaborate with IT & User Support Groups Seamless S Automate document ingestion; leverage cloud architecture and APIs to facilitate scalability H___ HDFC For You Organisation-wide thrust on identification and tracking of outcomes and input metrics to drive impact 53#54HDFC WITH YOU, RIGHT THROUGH • DASH PHILOSOPHY & DIGITALISATION INITIATIVES Board level Information Technology Committee - comprising two independent directors, a whole-time director and members of senior management • Information Security and Steering Committee monitors the progress of information security and cyber security • Emphasis on regulation and compliance with respect to consent management, data protection & privacy 54#55March 15, 2022 HDFC WITH YOU, RIGHT THROUGH