#1Pa Muthoot Finance Financial Results Q2 FY 2022 September 2021 MUTHOOT FINANCE LIMITED#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 Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Muthoot Trustee Private Limited Microfinance Vehicle Finance 70.01 100.00 Listed Diversified NBFC in Sri Lanka 72.92 Insurance Broking 100.00 100.00 100.00 2#4THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 YOY (%) FY 2021 5,439 5,381 5,439 5,443 1 5,451 Consolidated Gross Loan Assets* of the Group (in million) 609,188 522,863 609,188 581,348 17 582,802 Consolidated Profit of the Group (in million) 19,815 17,885 10,029 9,786 11 38,189 Contribution in the Consolidated Gross Loan Assets of the Group Muthoot Finance (%) Subsidiaries (%) Contribution in the Consolidated Profit of the Group Muthoot Finance (%) Subsidiaries (%) *Principal amount of Loan assets 90 89 00 90 90 00 90 10 11 10 10 10 10 99 97 99 99 97 1 3 1 1 3 3#5THE GROUP Gross Loan Assets* of the Group Ⓡ Muthoot Finance (in millions) Sep-21 Jun-21 Mar-21 Sep-20 YoY (%) Muthoot Finance Limited 551,468 526,138 526,223 470,162 17 Muthoot Homefin (India) Limited 16,405 17,048 17,042 19,377 (15) Belstar Microfinance Limited 33,544 30,721 32,999 26,867 25 Muthoot Money Limited 2,815 3,326 3,668 4,633 (39) Asia Asset Finance PLC 5,406 5,320 5,150 5,204 4 Less: Intra-Group Loan Assets 450 1,205 2,280 3,380 (87) Total 609,188 581,348 582,802 522,863 17 *Principal amount of Loan assets 4#6Ⓡ THE GROUP Standalone Profit of Group Companies H1 FY 2022 Muthoot Finance (in millions) H1 FY 2021 Q2 FY 2022 Q2 FY 2021 Q1 FY 2022 FY 2021 Muthoot Finance Limited 19,652 17,351 9,940 8,944 9,712 37,222 Muthoot Homefin (India) Limited 7 57 2 53 5 126 Muthoot Insurance Brokers Private 91 133 48 91 43 316 Limited Belstar Microfinance Limited 42 296 22 151 20 20 467 Muthoot Money Limited 8 48 6 73 (1) 37 Asia Asset Finance PLC 13 1 9 7 4 18 Muthoot Asset Management Private Limited 10 15 6 LO 5 4 19 Muthoot Trustee Private Limited 0.07 0.04 0.03 0.01 0.05 (0.10) 5#7Ⓡ Muthoot Finance (in millions) Jun-21 Mar-21 Sep-20 Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Sep-21 Cash and cash equivalents 82,514 87,181 77,775 61,669 Bank Balance other than above 2,359 1,993 2,435 2,259 Derivative Financial Instruments 292 499 154 159 Trade Receivables 87 95 98 149 Loans Investments Other Financial Assets Non-Financial Assets 626,598 594,610 588,085 521,399 5,057 7,829 8,085 26,480 2,974 3,214 4,383 2,320 Current Tax Assets (Net) 68 75 94 39 Defered Tax Assets (Net) 871 735 593 409 Investment Property 137 141 139 159 Property, Plant and Equipment 2,543 2,531 2,575 2,425 Right to use Asset 174 162 170 154 Captial Work-In-Progress 417 394 385 329 Goodwill 300 300 300 300 Other Intangible Assets 78 83 86 83 Intangible assets under development 1 1 Other Non Financial Assets 1,203 1,172 1,056 1,321 Total-Assets 725,672 701,015 686,414 619,654 10#8Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Sep-20 Particulars Sep-21 Jun-21 Mar-21 LIABILITIES Financial Liabilities Derivative Financial Instruments 4,385 3,408 3,305 1,749 Trade Payables 1,726 1,692 2,112 3,052 Other Payables 31 8 2 Debt Securities 138,145 143,212 146,670 118,129 Borrowings (other than Debt securities) 387,104 368,162 351,010 337,221 Deposits 3,136 3,013 2,580 2,596 Subordinated Liabilities 3,282 3,296 3,707 4,426 Lease Liability 188 172 178 163 Other Financial Liabilities 12,422 11,939 13,598 10,102 Non-Financial Liabilities Current Tax Liabilities (net) 1,835 2,829 1,303 1,442 Provisions 3,706 3,731 3,695 3,518 Deferred Tax Liabilities (net) 111 119 142 86 Other Non-Financial Liabilities 492 307 517 369 EQUITY Equity attributable to equity owners of the company 167,242 157,273 155,750 134,994 Non-Controlling Interest 1,867 1,854 1,846 1,807 Total Liabilities and Equity 725,672 701,015 686,414 619,654#9Ⓡ Muthoot Finance Consolidated Financial Results (in millions) YOY Q2 FY Q2 FY Particulars H1 FY 2022 H1 FY 2021 (%) 2022 2021 YOY (%) Q1 FY FY 2021 2022 Income Interest Income 59,216 52,579 13 30,033 €27,290 10 29,183 112,316 Service Charges 410 455 (10) 255 318 (20) 155 986 Sale of Services 59 49 20 31 31 27 120 Other Income 202 55 267 126 32 294 76 356 Income other than above 395 1,172 (66) 203 571 (65) 193 1,886 Total Income 60,282 54,310 11 30,648 28,242 9 29,634 115,664 Expenses Finance Cost 21,628 20,002 8 10,772 10,282 5 10,856 40,999 Impairment of Financial Instruments 2,004 712 181 1,186 281 322 818 2,552 Net Loss on derecognition of financial (120) 120 instruments Employee Benefit Expenses 5,605 5,776 (3) 2,834 2,976 (5) 2,771 11,893 Depreciation, Amortisation and 310 296 5 158 156 1 152 674 Impairment Other Expenses 4,121 3,566 16 2,302 2,104 9 1,819 8,232 Total Expenses 33,668 30,352 11 17,132 15,799 8 16,536 64,349 Profit before tax Tax expense 26,614 23,958 11 13,516 12,443 9 13,098 51,315 6,799 6,074 12 3,487 3,136 11 3,312 13,126 Profit after Tax 19,815 17,884 11 10,029 9,307 8 9,786 38,189 Earnings per share -Basic (7) 49.35 44.37 11 24.98 23.09 8 24.37 94.84 Earnings per share -Diluted (*) 49.32 44.33 11 24.97 23.08 8 24.35 94.76 8#10Ⓡ 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 6#11MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 178 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 26,000+ Team members 551,468 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day. (As of September 30, 2021) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 23.02 3.61 73.37 Ⓡ Muthoot Finance (%) Shareholding as on September 30, 2021 Promoter & Promoter group FII, FC, MF & Others Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on September 30,2021) 582,037 million 11#13BOARD OF DIRECTORS George Jacob Muthoot Chairman Jacob Benjamin Koshy Independent Director Ⓡ Muthoot Finance George Alexander Muthoot Managing Director George Thomas Muthoot Whole time Director Alexander M George Whole time Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director Pratip Chaudhuri Independent Director Usha Sunny Independent Director Abraham Chacko Independent Director V. A. George Independent Director 12#14DIVIDEND PAYOUT Delivering consistent returns to stakeholders Dividend (%)* Ⓡ Muthoot Finance (%) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 200 150 120 100 60 60 60 Dividend payout (in millions) 8,024 7,249 5,796 4,813 2,885 2,877 2,813 Dividend Payout Ratio (%) * On face value of 10 per equity share 21 19 24 22 20 20 29 35 55 13#15GEOGRAPHICAL PRESENCE A strong presence of 4619 branches across India (%) Branches region wise State wise Branch Network 60 60 17 ■ East ■West 16 North ■South (As of September 30, 2021) Rural India accounts for about 65% of total gold stock in the country. o Large portion of the rural population has limited credit access 。 Catering to under-served rural and semi- urban markets through strong presence Jammu & Kashmir 16 Himachal Pradesh 10 Pa Muthoot Finance Punjab 189 Haryana 136 Uttarakhand 22 Chandigarh 10 Delhi 224 Rajasthan 145 Uttar Pradesh 185 Bihar 25 Gujarat 195 Madhya Pradesh 100 Jharkhand 17 West Bengal 156 Daman & Diu 01 Chhattisgarh 25 Odisha 74 Maharashtra 261 Dadra & Nagar Haveli 01 Telangana 294 Goa 26 Karnataka 519 Andhra Pradesh 413 Pondicherry 8 Tamil Nadu Kerala 972 552 Assam 33 Tripura 4 Andaman & Nicobar Islands 6 14#16DIGITAL INITIATIVES Digital convenience for new gen & Millennium Customer acquisition Direct Credit Facility Muthoot . E-TRANSFER • Loan proceeds credited to bank • • account NEFT/RTGS/IMPS mode of bank transfer Less cash handling at branch Instant credit to customer bank account 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 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 15#17Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • Muthoot Finance 29.4 % of gold loan customers are transacting online. (including Paytm, PhonePe & Google Pay) Muthoot Online Muthoot nline 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. 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. ¡Muthoot App im Muthoot Mobile App Launched in Nov'16 has about 38.7 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.6,596 Crs payments from 2.06 Cr successful transactions so far (Including Web Pay). 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 16#18DIGITAL 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 Ⓡ Muthoot Finance 17#19Standalone Statement of Assets and Liabilities Muthoot Finance (in millions) Particulars Sep-21 Jun-21 Mar-21 Sep-20 ASSETS Financial assets Cash and cash equivalents 77,867 82,321 71,167 55,557 Bank Balance other than above 583 509 731 529 Derivative Financial Instruments 292 499 154 159 Trade Receivables 41 55 35 81 Loans 576,443 548,144 540,634 476,478 Investments 13,144 16,000 15,903 34,387 Other Financial Assets 2,038 2,105 2,099 1,208 Non-Financial Assets Defered Tax Assets (Net) 383 315 286 201 Property, Plant and Equipment 2,397 2,381 2,416 2,259 Captial Work-In-Progress 417 394 385 329 Other Intangible Assets 47 51 54 52 Other Non Financial Assets 948 895 786 1,126 Total Assets 674,599 653,669 634,649 572,366 18#20Standalone Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Sep-21 Jun-21 Mar-21 Sep-20 LIABILITIES Financial Liabilities Derivative Financial Instruments 4,385 3,408 3,305 1,749 Trade Payables 1,665 1,602 2,017 3,009 Debt Securities 129,897 135,213 137,961 110,791 Borrowings (other than Debt securities) 356,040 340,454 319,406 308,017 Subordinated Liabilities 1,711 1,711 2,096 2,763 Other Financial Liabilities 11,453 10,810 12,135 8,994 Non-Financial Liabilities Current Tax Liabilities (net) 1,767 2,749 1,282 1,384 Provisions 3,634 3,652 3,626 3,464 Other Non-Financial Liabilities 319 229 432 229 EQUITY Equity Share Capital Other Equity Total Liabilities 4,013 4,012 4,012 4,012 159,715 149,830 148,377 127,954 674,599 653,669 634,649 572,366 19#21REVENUE & PROFIT Standalone Financial Results Ⓡ Muthoot Finance (in millions) H1 FY 2022 H1 FY 2021 YOY Growth (%) Q2 FY Q2 FY 2022 2021 YOY Growth (%) Q1 FY 2022 FY 2021 INCOME Interest Income 54,757 48,226 14 27,920 25,066 11 26,837 103,285 Other than Interest Income 726 1,472 (51) 414 778 (47) 312 2,458 Total 55,483 49,698 12 28,334 25,844 10 27,149 105,744 EXPENSES Finance Cost 19,616 17,956 9 9,794 9,241 6 9,822 36,924 Employee benefit Expense 4,488 4,722 (5) 2,242 2,445 (8) 2,246 9,270 Administrative & Other 3,521 3,130 13 1,959 1,853 6 1,562 7,235 expenses Impairment on Financial 1,081 253 327 745 107 596 336 950 Instruments Directors Remuneration 136 170 (20) 68 85 (20) 68 793 Depreciation & Amortisation 241 213 13 127 114 12 114 507 Total 29,084 26,444 10 14,936 13,845 8 14,148 55,678 PROFIT Profit Before Tax 26,399 23,254 14 13,398 11,999 12 13,001 50,065 Profit After Tax 19,652 17,351 13 9,940 8,943 11 9,712 37,222 20#22EQUITY Strong Capital Base Networth Sep-21 Jun-21 Mar-21 Ⓡ Muthoot Finance (in millions) Sep-20 Equity Share Capital 4,013 4,012 4,012 4,012 Other Equity 159,715 149,830 148,377 127,954 Total 163,728 153,842 152,389 131,966 21#23ASSETS Core focus continues to be gold loan Gross Loan Assets under management* В Ⓡ Muthoot Finance Sep-21 Jun-21 Mar-21 Sep-20 Growth Growth (in million) (in million) (in million) (in million) YoY (%) QoQ (%) Gross loan assets under management 551,468 526,138 526,223 470,163 17 5 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 546,821 520,686 519,266 462,339 18 5 4,647 5,452 6,957 7,824 (41) (15) 22 22#24LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Sep-21 Jun-21 Mar-21 Sep-20 Growth Growth (in million) (in million) (in million) (in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures 2,417 2,524 2,635 2,896 (Muthoot Gold Bonds) (17) (4) Secured Non-Convertible Debentures- Listed 127,807 133,057 135,656 108,190 18 (4) Borrowings from Banks/Fls 228,813 208,484 198,331 177,364 29 10 External Commercial Borrowings- Senior 74,230 74,330 73,111 73,853 1 0 secured Notes Subordinated Debt Subordinated Debt -Listed 1,720 1,720 2,106 2,775 (38) 0 Commercial Paper 39,282 43,605 38,540 47,290 (17) (10) Other Loans 14,040 14,399 9,817 9,956 41 (2) Total 488,309 478,119 460,196 422,324 16 2 *Principal amount of Borrowings 23 23#25GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* Ⓡ Muthoot Finance (in billions) 600 547 560 519 521 520 480 462 440 408 400 360 336 320 288 280 272 260 233 216 243 240 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Mar-21 Jun-21 Sep-21 *Principal amount of gold Loan assets 24#26GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security. 200 Ⓡ Muthoot Finance (In tonnes) 180 176 178 171 171 169 163 160 155 149 142 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Mar-21 Jun-21 Sep-21 25#27Pa 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 Sep-20 Mar-21 Jun-21 Sep-21 East 5 6 6 7 7 8 8 9 9 9 9 9 West 11 13 15 17 18 19 20 19 19 19 19 19 North 19 22 22 22 23 23 23 23 23 22 22 22 South 65 59 57 54 52 50 49 49 49 50 50 50 (%) Gold Loan Assets Under Management * (in billions) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17|Mar-18 |Mar-19 Mar-20 Sep-20 Mar-21 | Jun-21 Sep-21 260 216 6 2 233 243 272 288 336 408 462 519 521 547 *Principal amount of Gold Loan Assets 26#28Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 135 (in millions) 118.39 115 112.10 112.58 100.36 95 89.28 74.97 75 63.69 66.70 63.20 56.93 55.01 50.63 55 35 15 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Mar-21 *Principal amount of Gold Loan Assets Jun-21 Sep-21 27 27#29HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 68 69 65 61 58 60 60 55 54 48 45 43 41 43 42 91 98 87 82 69 70 167 148 102 90 90 Pa Muthoot Finance (in billions) 85 77 77 70 52 52 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 ■Avg Monthly Disbursement • Strong level of disbursements and collections Avg Monthly Collection 28#30HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 80% 60% 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 29 29#31Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Sep-21 Jun-21 Mar-21 Sep-20 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Gold Loan assets ( in Billions) 547 521 519 462 407 336 288 272 243 233 Quantity of Gold content in Ornaments held as Security (Tonnes) 178 171 171 163 176 169 155 149 142 131 Gold Price/gm (₹) 4,200 4,283 4,048 4,621 3,955 2,910 2,824 2,725 2,670 2,470 Lender's Perspective Market Price of Gold Content in 748 732 692 753 696 492 438 406 379 324 Ornaments (in Billions) Margin of safety on loans 27% 29% 25% 39% 42% 32% 34% 33% 36% 28% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards making charges etc 898 878 830 904 835 590 526 487 455 389 Equity of Borrower in the Gold Ornaments net of loans availed 39% 41% 37% 49% 51% 43% 45% 44% 47% 40% * Above calculations are made on overall portfolio and excludes interest accrued on loans 30#32CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Sep-21 Jun-21 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Mar-19 Gold Loan AUM (in Millions) 546,821 520,686 519,266 496,225 462,339 404,949 407,724 335,853 QoQ % change in Gold Loan AUM 0 5 7 14 (1) 8 No. of Loan Accounts 88,11,961 85,24,713 84,10,139 80,32,610 76,24,105 75,79,640 80,22,325 80,62,139 QoQ % change in no.of loan accounts 3 1 5 5 1 (6) No.of Active customers 54,24,609 52,44,143 51,90,220 50,15,666 48,28,505 47,45,491 49,33,886 47,21,243 QoQ % change in no.of customers 3 1 3 4 2 (4) 1 31#33Ⓡ 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 Sep-21 Jun-21 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Mar-19 460,491 315,320 432,320 438,173 395,800 185,351 352,036 380,171 8 9 4 7 6 8 8 8 35,504 20,185 29,170 29,600 27,268 10,547 21,806 20,023 358,860 246,220 361,090 388,391 409,037 160,123 346,626 360,251 3 7 7 5 7 8 8 8 30,859 17,299 27,528 29,759 33,388 10,807 25,622 23,148 14 723,000 556,419 756,618 720,583 644,535 364,964 702,566 779,363 13 11 15 13 8 14 17 54,358 31,522 48,859 46,175 43,390 20,576 42,368 42,751 32#34YIELD ON LOAN ASSETS AND NIM Yearly (%) Quarterly Pa Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 21.66 22.21 21.63 22.17 22.71 21.43 22.27 22.00 22.00 19.72 20.73 20.40 20.48 20.00 19.31 20.00 20.27 18.00 18.00 15.52 16.00 15.2914.47 16.00 14.24 14.34 13.98 14.00 12.74 14.00 13.46 12.93 13.14 11.38 12.00 10.84 10.47 12.00 9.52 10.00 10.00 10.27 8.69 7.93 9.42 9.79 9.25 8.37 8.00 7.16 7.51 8.29 6.92 8.00 7.27 7.47 7.34 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q2 FY 2022* Q2 FY 2021* Q1 FY 2022* H1 FY 2022* H1 FY 2021* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 33 33#35INTEREST SPREAD Yearly 26.00 (%) Quarterly Muthoot Finance (%) 26.00 24.00 23.03 24.00 21.66 21.43 22.21 22.17 21.63 22.71 22.00 22.27 22.00 20.27 19.31 19.72 20.73 20.40 20.48 20.00 20.00 18.00 18.00 16.00 16.00 14.04 13.45 13.49 14.00 13.68 12.42 14.00 11.88 12.63 13.25 12.64 12.34 12.00 10.93 10.90 12.21 10.80 12.00 10.53 10.00 9.24 9.00 8.99 8.39 8.38 8.92 8.76 8.68 10.00 9.03 9.02 8.09 8.14 8.19 8.00 8.00 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* *Under IND-AS Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread Q2 FY 2022*Q2 FY 2021*Q1 FY 2022*H1 FY 2022*H1 FY 2021* 34#36RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 (%) Quarterly 10.00 Ⓡ Muthoot Finance 8.00 7.00 6.31 6.36 6.00 5.00 4.05 4.47 4.00 3.22 9.00 8.11 7.99 8.10 8.01 8.00 7.38 7.38 7.35 7.00 6.00 5.00 4.00 3.32 3.03 3.00 T 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q2 FY 2022* Q2 FY 2021* Q1 FY 2022* H1 FY 2022* H1 FY 2021* *Under IND-AS (%) 35#37IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Sep-20 Sep-21 Jun-21 Mar-21 Stage III Loan Assets 10,213 6,408 4,641 5,920 % Stage III Assets on Gross Loan Assets 1.85 1.22 0.88 1.26 ECL Provision on Gross Loan Assets 7,175 6,501 6,257 5,636 ECL Provision as % of Gross Loan Assets Excess Provision outstanding in books Staging Criteria 1.30 1.24 1.19 1.20 2,954 2,954 2,954 2,954 Stage Description Stage 1 Stage 2 Stage 3 PD-Probability of default Bad Debts 0-30 days past due > 30 to <= 90 past due > 90 days past due LGD-Loss given default Provision Mechanism PD X LGD x Stage 1 Asset PD x LGD x Stage 2 Asset LGD x EAD of Stage 3 Asset EAD-Exposure at Default (in millions) Q2 FY 2022 Q1 FY 2022 Q2 FY 2021 H1 FY 2022 H1 FY 2021 FY 2021 Bad Debts Written Off 77 91 10 168 38 118 % of Bad Debts written off to Gross Loan Assets 0.01 0.02 0.002 0.03 0.01 0.02 36#38LIABILITY MIX Maintaining a diversified funding profile* (%) * 15 8 3 Ⓡ Muthoot Finance 47 26 Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 2,417 mn (0%) Secured Non-Convertible Debentures - Listed - 127,807 mn (26%) - Borrowings from Banks/Fis - 228,813 mn (47%) External Commercial Borrowings- Senior secured Notes - 74,230 mn (15%) Subordinated Debt - 0mn (0%) ■Subordinated Debt - Listed - 1,720 mn (0%) Commercial Paper - 39,282 mn (8%) *Principal amount of Borrowings (As of September 30, 2021) Other Loans - 14,040 mn (3%) 37 37#39DOMESTIC 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 ICRA AA+(Stable) BANK LOANS ICRA LIMITED 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 38#40Ⓡ INTERNATIONAL CREDIT RATINGS Muthoot Finance Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB (Stable) S&P GLOBAL RATINGS BB (Negative) MOODY'S INVESTORS SERVICE Ba2 (Stable) 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 39#41BREAK-UP OF TOTAL INCOME Interest Income Yearly 140,000 120,000 100,000 80,000 Quarterly 140,000 Ⓡ Muthoot Finance (in millions) 103,285 120,000 85,644 100,000 56,546 62,021 67,570 80,000 60,000 54,757 48,226 40,000 27,920 25,066 26,837 20,000 60,000 53,641 49,077 42,703 48,130 40,000 20,000 0 11:11|| Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Other Than Interest Income Yearly Q2 FY 2022* Q2 FY 2021* Q1 FY 2022* H1 FY 2022* H1 FY 2021* (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 2,000 1,584 1,472 1500 1,310 1,236 1,500 921 1000 620 1,000 543 779 726 500 397 230 500 414 312 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q2 FY 2022* Q2 FY 2021* Q1 FY 2022* H1 FY 2022* H1 FY 2021* *Under IND-AS 40#42Ⓡ 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 4.08 3.92 4.50 4.00 4.08 4.00 3.72 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* 2.50 *Under IND AS (%) 3.83 3.45 3.21 Q2 FY 2022*Q2 FY 2021*Q1 FY 2022* H1 FY 2022* H1 FY 2021* 41#43Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly (in million) Muthoot Finance Quarterly in millions) Mar-21 Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13: Employee Benefit Expenses 9,270 Rent 2,189 9,657 8,415 2,158 1,974 7,393 Q2 FY Q2 FY Q1 FY H1 FY H1 FY 2022 2021* 2022* 2022* 2021* 7,280 6,418 6,304 5,917 5,453 2,242 2,445 2,246 4,488 4,722 1,913 1,808 1,713 1,650 1,542 1,309 569 592 605 1,174 1,021 Advertisement & 1,190 1,163 1,056 720 531 626 651 702 579 288 404 209 497 546 Publicity Communication Costs 387 355 368 404 372 378 371 364 243 119 101 104 223 176 Traveling and 210 273 240 182 186 187 212 190 175 63 63 49 49 112 81 Conveyance Printing and Stationery 151 177 153 136 129 144 160 185 168 38 40 33 71 62 62 Repairs and 276 283 280 304 362 290 281 272 256 137 76 121 258 134 Maintenance Legal and Professional 387 260 203 154 124 93 189 216 86 99 56 67 48 104 189 Charges Business Promotion 369 720 481 209 201 149 140 279 332 39 129 41 80 244 Expenses Directors Remuneration 793 633 561 431 362 196 192 192 192 80 68 85 68 80 136 170 Depreciation and 507 431 421 439 482 575 841 475 454 127 114 114 241 213 Amortisation Expenses Others 2,075 1,677 1,260 2,970 835 1,014 733 731 550 652 395 351 1,004 677 Provision For Standard 2,647 1,223 180 214 765 & NPA Assets Impairment on 950 957 259 316 744 107 337 1,081 253 Financial instruments Total 18,754 18,744 15,670 15,571 15,319 13,006 11,904 11,279 10,562 5,141 4,604 4,326 9,467 8,488 *Under IND-AS 42#44BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Mar- Mar-21* Mar-20* Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 19* Q2 FY Q2 FY Q1 FYH1 FY H1 FY 2022 2021 2022* 2022* 2021* Employee Benefit 49 52 54 47 48 49 53 52 52 44 53 52 17 47 56 Expenses Rent 12 12 13 12 12 13 14 14 12 11 13 14 12 12 Advertisement & 6 6 7 5 3 5 5 CO 6 5 6 6 5 5 6 Publicity Communication Costs 2 2 2 3 2 3 3 3 2 2 2 2 2 2 Traveling and 1 1 2 1 1 1 2 2 2 1 1 1 1 1 Conveyance Printing and Stationery 1 1 1 1 1 1 1 2 2 1 1 1 1 1 Repairs and 2 2 2 2 2 2 2 3 2 3 3 2 Maintenance Legal and Professional 2 1 1 1 1 1 2 2 1 1 1 1 1 2 Charges Business Promotion 2 3 1 1 1 1 2 3 1 3 1 1 3 Expenses Directors Remuneration 4 3 2 2 2 2 1 2 2 1 2 Depreciation and 3 2 3 3 3 4 7 4 4 2 2 3 3 3 Amortisation Expenses Others 12 9 8 19 5O 8 CO 6 6 LO 5 13 6 8 11 8 Provision For Standard . 17 9 2 2 7 & NPA Assets Impairment on Financial 5 LO 5 2 2 I 14 2 8 11 11 3 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 43#45PROFITABILITY RATIOS Yearly ht Ⓡ Muthoot Finance (%) Quarterly (%) Q2 FY (Based on Income) Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 2022* Q2 FY Q1 FYH1 FY H1 FY 2021 2022* 2022* 2021* Interest expense to Gross Income 34.92 32.00 32.51 30.50 39.92 46.31 48.71 53.08 52.34 34.57 35.76 36.18 35.36 36.13 Selling, general and administrative expenses 25.13 29.26 32.24 28.93 34.88 41.36 48.26 44.66 35.89 23.03 26.40 22.37 22.71 :25.27 to Net Income Provisions & Write Offs 1.38 1.61 0.59 5.44 8.16 6.20 1.67 1.89 3.49 4.02 0.64 1.94 3.01 0.80 to Net Income Operational expenses to 26.51 30.87 32.84 34.38 43.03 47.56 49.93 46.55 39.37 27.04 27.04 24.31 25.72 : 26.07 Net Income OPBDT/ Net Income 73.49 69.13 67.16 65.62 56.97 52.44 50.06 53.45 60.62 72.95 72.96 75.69 74..28 73.93 Depreciation to Net Income 0.74 0.73 0.90 1.00 1.33 2.13 3.72 2.03 1.76 0.69 0.69 0.66 0.67 0.67 OPBT/Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 72.27 72.27 75.03 73.60 73.26 PBT Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86% 72.27 72.27 75.03 73.6073.26 PAT Net Income *Under IND-AS 54.09 50.88 42.47 40.38 34.17 30.93 30.23 33.60 39.11 53.61 53.86 56.05 54.79 : 54.66 44#46Ⓡ PROFITABILITY RATIOS Yearly (Based on Average Loan Assets) Interest income to avg. loan assets (%) Mar-21 Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Muthoot Finance Quarterly (%) Q2 FY Q2 FY Q1 FY: H1 FY H1 FY 2022 2021* 2022* 2022*2021* 22.21 21.43 19.72 19.30 20.27 21.66 20.73 22.71 20.40 20.48 22.27 22.17 23.03 21.63 Interest expense to avg. loan assets 7.93 7.51 7.16 6.92 8.69 9.25 9.52 10.84 11.38 7.27 8.37 7.47 7.34 8.29 Net Interest Margin Other income to avg. loan assets 14.24 15.52 14.47 15.29 12.74 10.47 9.78 9.42 10.27 13.46 14.34 12.93 13.15 :13.98 0.53 0.43 0.40 0.47 0.35 0.25 0.25 0.16 0.09 0.31 0.71 0.24 0.27 0.68 14.77 15.95 14.87 15.76 13.09 10.72 10.03 9.59 10.37 13.76 15.04 13.17 13.42 14.66 Net Income Including Other Income Selling, general and administrative expenses to 3.72 4.68 4.81 5.32 4.56 4.43 4.84 4.28 3.72 3.17 3.98 2.95 3.05 3.71 avg. loan assets Provisions and write offs 0.20 0.26 0.08 0.11 1.07 0.67 0.17 0.18 0.36 0.55 0.10 0.26 0.40 0.12 to avg. loan assets PBDT to avg. loan assets 10.85 11.01 9.98 10.33 7.45 5.62 5.02 5.12 6.28 10.04 10.96 9.97 9.96 10.83 Depreciation to avg. loan assets 0.10 0.11 0.12 0.15 0.17 0.23 PBT to avg. loan assets 10.75 10.90 9.85 Tax to avg. loan assets 2.76 2.79 3.54 3.82 PAT to avg. loan assets 7.99 8.11 6.31 6.36 0.37 0.20 0.18 10.19 7.28 5.39 4.65 4.93 6.10 2.81 2.08 1.62 1.71 2.05 4.47 3.32 3.03 3.22 4.05 0.09 0.09 0.08 0.09 0.09 9.95 10.87 9.88 9.88 10.74 2.57 2.77 2.50 2.52 2.73 7.38 8.10 7.38 7.35 8.01 Cash Profit to avg. loan 8.09 8.22 6.44 6.51 4.65 3.54 3.40 3.42 4.24 7.47 8.19 7.46 7.44 8.11 assets *Under IND-AS 45#47PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT Quarterly PBT PAT 55,000 50,065 50,000 45,000 45,000 40,000 40,000 40,574 37,222 35,000 35,000 30,768 30,000 30,000 28,447 30,183 25,000 25,000 19,210 20,000 20,000 26,399 23,254 19,652 17,351 15,114 13,168 19,721 15,000 17,776 11,936 15,000 13,398 13,001 10,279 10,042 11.999 10,000 11,798 9,940 7,801 10,000 8,943 9,712 8,096 5,000 6,705 5,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q2 FY 2022* Q2 FY 2021* Q1 FY 2022* H1 FY 2022* H1 FY 2021* *Under IND-AS 46#48NETWORTH Steady capital position Share Capital and Reserves & Surplus 180,000 Ⓡ Muthoot Finance (in millions) 163,728 160,000 153,842 152,389 140,000 131,966 120,000 115,718 97,928 100,000 78,120 80,000 65,164 56,192 60,000 37,356 42,646 50,835 40,000 20,000 0 Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Sep-20* Mar-21* Jun-21* Sep-21* *Under IND-AS 47#49RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 250 55 50 45 40 35 30.15 30 25 19.50 20 55 55 50 45 40 35 28.02 28.26 30 28.05 27.77 25.04 25.37 24.87 24.81 25 22.40 20 19.44 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* 0 *Under IND-AS Q2 FY 2022*Q2 FY 2021 *Q1 FY 2022*H1 FY 2022*H1 FY 2021* 48#50Ⓡ CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Muthoot Finance Capital Adequacy Ratio Tier-I Tier-ll (%) Sep-21 Jun-21 Mar-21 Sep-20 27.60 27.32 27.39 25.73 26.66 26.26 26.31 24.62 0.94 1.06 1.08 1.11 49#51MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Earnings per share (7) - Basic - Diluted Ⓡ Muthoot Finance Q2 FY 2022 Q2 FY 2021 Q1 FY 2022 H1 FY 2022 H1 FY 2021 FY 2021 24.77 22.30 24.21 48.98 43.26 92.79 24.77 22.28 24.18 48.95 43.22 92.71 Sep-21 Jun-21 Mar-21 Sep-20 Book Value per share (*) 407.86 383.33 379.70 328.82 Market price per share (*)* ** 1,450.30 1,481.65 1,205.90 1,132.10 Price to Earnings ratio* *** 14.72 15.43 13.00 13.49 Price to Book Value ratio 3.56 3.87 3.18 3.44 **Source: www.nseindia.com ***Based on trailing 12 months EPS 50 50#52CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (In millions) Sep-21 Jun-21 Mar-21 Sep-20 Outside Liabilities 510,871 499,827 482,260 440,401 Cash & Bank Balances & Investment in 77,897 82,492 71,308 79,465 MF liquid Funds Tangible Networth 163,681 153,791 152,335 131,914 Capital Gearing 2.65 2.71 2.70 2.74 51#53Ⓡ TEAM STRENGTH Muthoot Finance Groomed human capital over the years to meet growing business requirements 27000 26000 25012 24881 25000 24000 22882 23000 22781 22000 21000 24205 24224 23455 (No. of Employees) 26139 25987 25911 25397 25554 20000 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Mar-21 Jun-21 Sep-21 52#54OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 53#55ASIA 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 September 30,2021, total holding in AAF stood at 91 million equity shares representing 72.87% of their total capital. The loan portfolio stands at LKR 14,569 million as on September 30, 2021 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 48 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka. 54#56Ⓡ PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance o Fixed Deposits ○ Leasing o Business Loan o Personal Loan o Group Personal Loan o Corporate Loans ○ Mortgage Loans 。 Factoring ○ Short Term Loans o Micro Finance o Loan against Gold Jewellery 55#57Ⓡ BRANCH NETWORK 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 Chankanai Jaffna Kilinochichi Vavuniya Udappuwa Mahiyanganaya Kegalle Ragala Puttalam Chilaw City office Wennappuwa Negombo Nawalapitiya Moratuwa Gampola Galle Kalutara (SC) Mathugama Chunnakam Nelliyadi Point Pedro Chavakachcheri Mullaitivu Puthukkudiyiruppu Oddusuddan Sammanthurai Trinco ►Kinniya Valaichcenai Digana Chenkaladi Batticaloa Matale Kurunegala Gampaha Chavakachcheri Colombo Hatton Kaluwanchchikudi Matara Pundoloya Thalawakele Beruwala Badulla Kalmunai Akkaraipattu Monaragala 56#58Key Financial Parameters Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) Particulars INR/LKR H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 0.371040 0.400860 0.371040 0.372288 0.367786 Number of branches 48 30 48 48 48 Number of Employees 405 427 405 425 427 Gross Loan AUM (LKR) 14,569 12,982 14,569 14,289 14,002 Capital Adequacy Ratio (%) 19 17 19 14 17 Total Revenue (LKR) 1,430 1,457 752 678 2,952 Total Expense (LKR) 1,359 1,436 709 650 2,865 Profit Before Tax (LKR) 71 21 43 28 87 Profit After Tax (LKR) 35 1 25 10 45 Shareholders Funds (LKR) 2,671 2,173 2,671 2,232 2,222 Total Outside Liabilities (LKR) 15,038 12,476 15,038 13,829 13,128 Total Assets (LKR) 17,709 14,649 17,709 16,061 15,350 57#59OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 58 598#60Ⓡ MUTHOOT HOMEFIN - AN OVERVIEW Muthoot Homefin Muthoot Finance பிம், 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 September 30, 2021, it has a loan portfolio of Rs.16,405 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. 59#61Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 Number of branches 108 108 108 108 108 Number of Sales Offices 108 108 108 108 108 Number of Employees 267 280 267 260 299 Gross Loan AUM (R) 16,405 19,377 16,405 17,048 17,042 Capital Adequacy Ratio (%) 56 48 56 53 50 Total Revenue (*) 917 1,159 457 460 2,409 Total Expense (*) 907 1,082 454 453 2,240 Profit Before Tax () 10 77 3 7 169 Profit After Tax (*) 7 57 2 5 126 Shareholders Funds (*) 4,394 4,318 4,394 4,392 4,387 Total Outside Liabilities (*) 10,476 13,713 10,476 11,014 12,397 Total Assets (₹) 14,870 18,031 14,870 15,406 16,784 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 Disbursement (R) 738 729 180 557 1,010 Borrowings () 9,985 13,312 9,985 10,531 11,846 Debt Equity Ratio (%) 2.27 3.08 2.27 2.40 2.70 Yield on Advances (%) 12.48 12.89 12.72 12.26 12.51 Interest Spread (%) 4.03 3.58 4.26 3.83 3.41 NIM (%) 6.03 5.25 6.59 5.50 5.13 Cost to Income Ratio (%) 50.97 36.90 54.46 47.50 42.16 Return on Assets (ROA) (%) 0.11 0.67 0.07 0.14 0.75 Return on Equity (ROE) (%) 0.32 2.67 0.21 0.43 2.92 Stage III Loan Assets 775 331 775 1,012 681 % Stage III assets on Gross Loan 4.73 1.71 4.73 5.94 4.00 Assets (AUM) Stage III ECL Provision 320 281 320 309 207 ECL Provision 372 348 372 361 261 ECL Provision as a % of Gross Loan 2.27 1.80 2.27 2.12 1.53 Assets (AUM) Number of Customers 22,030 23,812 22,030 22,421 22,765 61#63Ⓡ Financial Highlights • • . • • Muthoot Homefin Muthoot Finance Disbursements in H1 FY 2022: Rs 738 mn. AUM as on September 30, 2021: Rs. 16,405 mn, Loan Book as on September 30, 2021: Rs 13,614 mn. Average Ticket Size in H1 FY 2022: Rs. 1 mn 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 for H1 FY 2022: 0.11%, ROE for H1 FY 2022: 0.32% Average cost of borrowings of 8.45% for H1 FY 2022. Capital Adequacy Ratio: 55.78%, Debt Equity Ratio: 2.27 Average Yield: 12.48%, Interest Spread: 4.03% . Received PMAY subsidy of INR 300 mn for 1679 cases in H1 FY 2022. Growth Drivers Increasing the leverage from 2.27x currently will help to improve the ROE Higher credit rating will help in raising funds at competitive rates. Profitability Opportunities • • 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 2.27 times as on September 30, 2021, indicates ample scope for financial leverage to increase ROE Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex Our focus segment, "affordable housing finance" is the centered around the Government initiative of "Housing for All" by 2022 Government promoted schemes such as PMAY-CLSS will benefit the end consumers. 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 62#64OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 63#65Muthoot 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 Q2 FY22, it has insured more than 828,300 lives with a First year premium collection of Rs.646 million under Traditional, Term and Health products.. During Q2 FY21, it has insured more than 807,000 lives with a First year premium collection of Rs.725 million under Traditional, Term and Health products.. 19 64#66Key Business Parameters Particulars Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 Premium Collection (*) 1,590 1,502 984 606 4,055 Number of Policies 11,93,175 958,351 839,208 353,967 32,23,737 Key Financial Parameters (in millions) Particulars H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 Total Revenue (*) 169 196 101 69 467 Total Expense (*) 47 19 37 11 43 Profit Before Tax (3) 122 177 64 58 424 Profit After Tax (*) 91 133 48 43 316 Shareholders Funds (*) 938 663 938 890 847 Earnings per share (*) 121 177 63 63 57 422 65#67OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 66#68Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of March 2021, Muthoot Finance holds 70.01% 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 twelve 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 September 30, 2021, BML operations are spread over 18 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Haryana, Punjab, Jharkhand, Uttarakhand, West Bengal, Tripura and Delhi. It has 653 branches, with 171 controlling regional offices and employs 5091 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 33,544 mn in September 2021 67#69Ⓡ Key Financial Parameters Particulars Number of Branches Number of Employees Muthoot Finance (in millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 653 618 653 651 649 5,091 4,413 5,091 4,651 4,562 Gross Loan AUM (7) 33,544 26,867 33,544 30,721 32,999 Capital Adequacy Ratio (%) 20 27 20 23 22 Total Revenue (*) 3,016 2,491 1,501 1,515 5,532 Total Expense (*) Profit Before Tax () 2,975 2,107 1,479 1,496 4,962 41 384 22 19 570 Profit After Tax (*) 42 296 22 20 467 Stage III Loan Assets 1,210 167 1,210 1,126 783 % Stage III assets on Gross Loan 3.61 0.62 3.61 3.67 2.37 Assets (AUM) Stage III ECL Provision 869 264 869 742 618 ECL Provision 1,465 462 1,465 1,273 980 ECL Provision as a % of Gross Loan 4.37 1.72 4.37 4.14 2.97 Assets (AUM) Shareholders Funds (7) 5,448 5,244 5,448 5,431 5,417 Total Outside Liabilities (*) 29,593 24,300 29,593 25,832 29,256 Total Assets (7) 35,041 29,544 35,041 31,263 34,673 68#70OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 69#71MUTHOOT 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 loans for vehicles. The operations are now centered in Hyderabad. As on 30th September, 2021 it has a total loan portfolio of Rs.2,815 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 70 10#72Key Financial Parameters Particulars Number of branches Muthoot Money Muthoot Finance (in millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 11 18 11 11 14 138 234 138 143 188 Number of Employees Gross Loan AUM (*) 2,815 4,633 2,815 3,326 3,668 Capital Adequacy Ratio (%) 40 22 40 33 29 Total Revenue (*) 238 382 132 106 697 Total Expense (*) 228 330 119 108 656 Profit Before Tax (7) 10 52 13 (2) 41 Profit After Tax (*) 8 48 9 (1) 37 Stage III Loan Assets 477 237 477 627 314 % Stage III assets on Gross Loan 16.95 5.12 16.95 18.85 8.56 Assets (AUM) Stage III ECL Provision 115 168 115 152 129 ECL Provision 150 190 150 189 172 ECL Provision as a % of Gross Loan 5.33 4.10 5.33 5.68 4.69 Assets (AUM) Shareholders Funds (7) 1,107 1,110 1,107 1,099 1,099 Total Outside Liabilities (*) 1,738 3,701 1,738 2,207 2,789 Total Assets (7) 2,845 4,811 2,845 3,306 3,888 71#73OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Ⓡ Muthoot Finance (In millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 Networth 1,082 1,068 1,082 1,076 1,072 MUTHOOT TRUSTEE PRIVATE LIMITED Networth (In millions) H1 FY 2022 H1 FY 2021 Q2 FY 2022 Q1 FY 2022 FY 2021 10 10 10 10 10 72#74Ba Muthoot Finance REGISTERED OFFICE 2nd Floor, Muthoot Chambers Opposite Saritha Theatre Complex Banerji Road, Kochi Kerala 682 018. India - Tel: (91484) 2394712 Fax: (91484) 2396506 CIN: L65910KL1997PLC011300 RBI Reg No: N 16.00167 EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com