#1home first We'll take you home Home First Investor Presentation Q1 FY24 1.00.00#2Safe Harbour Safe Harbour +रे This presentation and the accompanying slides (the "Presentation"), which have been prepared by Home First Finance Company India Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 02 2#3Executive Summary | Q1FY24 y-o-y q-o-q Assets Under Management (AUM) * 77,759 Mn +33.3% -10 bps Spread(2) +8.0% 5.7% Q1FY24 Highlights Disbursement *8,952 Mn +35.4% +3.0% Cost to Income Gross Stage 3 / POS (GNPA %) 1.6(1) In line with RBI circular dated 12 Nov 2021 1.0% prior to such classification -50 bps 0 bps DPD 30+/POS % 36.3% 2.9 -60 bps +20 bps +50 bps +190 bps +20 bps Return On Assets (ROA) Opex to Assets +20 bps 3.1% +20 bps Profit After Tax (PAT) 691 Mn +34.9% +8.0% 0 bps 3.9% 0 bps (1) Pursuant to the RBI circular dated 12 Nov 2021 - "Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarifications", the Company has aligned its definition of default and taken steps to comply with the norms/ changes for regulatory reporting, as applicable. Such alignment has resulted in classification of loans amounting to 399.55 millions as Gross Stage 3 (GNPA) as at Jun'23 in accordance with regulatory requirements. Gross Stage 3 prior to such classification for Jun'23 is 1.0%. (2) As per IGAAP Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 03#4MD & CEO Commentary on Q1 FY24 Performance Manoj Viswanathan Managing Director and CEO MD Commentary "We stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management. We continue to expand our distribution in large affordable housing markets in States where we are already present, going deeper in a contiguous manner. We now do business across 282 touchpoints across Tier 1, Tier 2 and Tier 3 markets in 13 states/ UT. Disbursement in Q1 at Rs 895 Cr was higher than Q4, with a growth of 35.4% on y-o-y basis and 3.0% on q-o-q basis, leading to an AUM growth of 33.3% to Rs 7,776 Cr. We witnessed pass through of rate hikes and elevated interest rate environment. Our strong liability profile and timely availability of low cost funding from NHB enabled us to contain the cost of borrowing. Competitive overall cost of borrowing coupled with PLR increase of 50bps in Apr 23 helped expand spreads on q-o-q basis and sustain NIM on q-o-q basis, despite increase in leverage. Spreads at 5.7% remain ahead of our guided levels of 5.25%. Asset quality is at pre-covid levels and reflects marginal seasonality impact in Q1FY24. 1+ DPD increased from 4.0% in Q4 to 4.3% in Q1 but showed a yoy decrease of 70 bps. 30+ DPD increased from 2.7% in Q4 to 2.9% in Q1 but showed a yoy decrease of 60 bps. Gross Stage 3 (GNPA) is stable qoq at 1.6% but showing a yoy decline of 50 bps. Prior to RBI classification circular of Nov'21, it stands at 1.0% up 10 bps from Q4. Our credit cost is at 40bps for the quarter. PAT at Rs. 69 Cr was up 34.9% y-o-y and 8% q-o-q. ROA holds steady at 3.9%. Q1FY24 ROE at 15% (+220 bps y-o-y, +60 bps q-o-q) is a testimony of our strong and agile business model. Digital adoption continues to be strong and an key area of our focus as we grow. 93% of our customers are registered on our app as on Jun'23. Unique User Logins was 55% in Q1FY24. Service requests raised on app was stable at 91%. We believe that given the tailwinds of the housing sector supported by overall economic growth momentum and strong execution mindset of the company we will continue to deliver excellent results while staying true to our mission of being the "Fastest Provider of Home Finance for the Aspiring Middle Class, delivered with Ease and Transparency." Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 04#5HomeFirst - Who are We? Technology driven affordable housing finance company with pan India presence Home loans to first time home buyers with predominant focus on salaried individuals having income < 50k p.m 87% of book comprise of housing loans with average ticket size of 1.12Mn ■ Strong liquidity pipeline with positive ALM and zero commercial papers Data science backed centralized underwriting with in-depth understanding of local property markets ESG Risk Rating by MorningStar Sustainalytics 'Amongst Leading Ratings in BFSI Sector' 16.2 Low Risk Strong Risk Management 1,105 No of employees (Jun'23) GPTW 3 years in a row Great Place To WorkⓇ Certified DEC 2022-DEC 2023 INDIA TM 113 13 123282 Branches States / UT Districts Home First Finance Company India Ltd. Corporate Information 81,842 Touchpoints Customers 69% Salaried occupation mix of AUM (Jun'23) *20,917 Mn Liquidity buffer as on Jun'23 Investor Presentation - Q1 FY24 90 05#6Our Journey Scalable operating model * 77,759 Mn Assets Under Management CARE Rating BBB- Series B Alpha TC CARE/ICRA Rating A+ BBB+ A- Series C True North acquires majority stake truenorth GIC Co-investment with True North (¹) Net worth crosses *5,000 Mn. Corporate Information India ICRA / CARE Ratings Rating AA- AA- 100+ Physical AUM crosses Branches *75 bn. 1,00,000+ Customers 77,759 We got listed Warburg Pincus invested in the company (2) WARBURG PINCUS AUM crosses *50 bn. 53,803 71,980 AUM crosses 60,000+ sanctions 35 bn. 41,411 30,000+ customers 36,183 24,436 AUM CAGR: 42.6% Series A Bessemer Venture Partners Started Operations in Gujarat and Tamil Nadu 10,000 Holdings Customers Private Spread Limited across 25+ 1,000 customers Incorporation 20 200 690 Became Profitable 1,629 5,000 customers #GIC cities 13,559 8,473 5,477 3,368 2010 2011 2012 2013 2014 Early Days and Proof of Concept 2015 Consolidation 2016 2017 2018 2019 2020 2021 2022 2023 Q1FY24 Scaling Up Expansion Note: AUM in INR Million (1) Aether has co-invested with True North. Waverly owns 100% of Aether Class B Shares. Waverly is a wholly-owned indirect subsidiary of GIC (Ventures) Pte. Ltd (2) Investment by Orange Clove Investments B.V (an affiliate of Warburg Pincus). Warburg Invested on 1st October 2020 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 06 AUM#716.9% Shareholding as on 21 Jul'23 10.4% 16.0% No. of Shareholders 79,315 PROMOTER & PROMOTER GROUP Corporate Information % Holding TRUE NORTH FUND V LLP 18.2 AETHER (MAURITIUS) LIMITED (GIC)^ 12.0 TRUE NORTH FUND V LLP KEY INVESTORS % Holding ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 26.5 18.2% ■AETHER (MAURITIUS) LIMITED (GIC)^ ADITYA BIRLA SUNLIFE MF MFS & AIFS % Holding* INVESCO INDIA MF 3.1 1.8 SUNDARAM MF 1.2 12.0% ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) MFS, AIFs & Insurance Cos. UNION MUTUAL FUND 0.8 ALCHEMY IM 0.7 ICICI PRUDENTIAL AMC (AIF) 0.5 FIIS & FPIS % Holding* NORGES FUND 3.3 GOLDMAN SACHS INDIA EQUITY 2.5 Flls & FPs FIDELITY INTERNATIONAL 2.3 KUWAIT INVESTMENT AUTHORITY FUND F239 1.3 26.5% AL MEHWAR COMMERCIAL INVESTMENTS 1.0 Public & Others CRESTWOOD CAPITAL MASTER FUND 0.9 TAIYO GREATER INDIA FUND 0.9 TT ASIA 0.6 0.5 "Waverly owns 100% of Aether Class B Shares. Waverly is a wholly-owned indirect subsidiary of GIC (Ventures) Pte. Ltd Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 ENVISION FUND *Holding through various schemes and funds including advisory mandates 10 07#8Distinguished Board of Directors Deepak Satwalekar Chairman/Independent/ Non-Executive Director Geeta Dutta Goel Independent/ Non-Executive Director Anuj Srivastava Independent/ Non-Executive Director Divya Sehgal Nominee / Non-Executive Director Maninder Singh Juneja Nominee / Non-Executive Director Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Leadership Sucharita Mukherjee Independent/ Non-Executive Director Narendra Ostawal Nominee / Non-Executive Director Manoj Viswanathan Managing Director and CEO 08#9Experienced Management Team Leadership Manoj Viswanathan Managing Director and CEO Ajay Khetan Chief Business Officer Vilasini Subramaniam Head Strategic Alliances Gaurav Mohta Chief Marketing Officer Nutan Gaba Patwari Chief Financial Officer Ashishkumar Darji Chief Risk Officer Abhijeet Jamkhindikar Business Head - Maharashtra Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Ramakrishna Vyamajala Chief Human Resource Officer Arunchandra Jupalli Business Head - South • 09 90#10Meet Our Customers Who are they? Formal Salaried Customer 1 Age: 44 Location: KR Puram (suburbs of Bangalore) Salaried 69% Informal Salaried Customer 2 Age: 32/Location: Sayan (suburbs of Surat) ER S ON B DER FUL Self Employed 31% Self Employed Customer 3 Age: 36/Location: Avadi (suburbs of Chennai) Corporate Information Last Momas Cha -20/- Shahada 100 Gma -25/ Chiches Jakada BL 102 C 40/- A CHI ichen Lolly Pep 40/- What is their story? COVID Experience Teacher with several years of experience and monthly family income of 49,000 Salary credit in bank was 19,348 with additional income through private tuitions in cash Husband is a maintenance officer earning 13,000 p.m Assessment based on total income (salary + tuition income) unlike traditional financiers who will consider only salary income Home Loan sanctioned: 1.5mn at Rol of 13% and EMI of 17,600 Resilient. Has not missed a single payment through COVID and is regular with payments. Data for the period Q1FY24 her Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Diamond polisher for 10+ years with monthly family income of *29,000 Cash salary of 20,000 p.m. His wife earned a salary of 9,000 also in cash. Found it challenging to approach a bank for a housing loan due to cash income Workplace verification to confirm income sources along with discussions with owner / boss to assess expertise, craftsmanship and job stability Home Loan sanctioned: 0.8mn at Rol of 13.5% and EMI of 9,700 2 Resilient. Has not missed a single payment through COVID and was regular with his payments. In Nov 22 prepaid the entire loan (after 5years since origination) through own funds. Owns an iron fabricating shop for 15 years with monthly income of 40,000 Faced difficulty with lengthy documentation process at banks; taking time out of his workshop meant loss of a day's business Door step service and workplace verification to confirm scale of business, reference checks with neighboring shops and home verification Home Loan sanctioned: 0.93mn at Rol of 14.5% and EMI of 11,900 (loan sanction in 4 hours from submission of documents) He has been resilient through COVID wave1. However, he's been impacted by COVID wave 2 and lagging behind with 1 EMI overdue. 10 10#11Our Unique Value Proposition to Our Customers Corporate Information Who are our customers Salaried and self-employed individuals 75%+ Customers with annual household income level less than 0.6 mn comprising 67% of AUM First time home buyers 26% customers are new to credit contributing to 19% of AUM What do our customers need Home loan requirement primarily in the 0.5-1.5 mn range (1) Access to formal housing finance Minimal disruption to daily work routine What challenges do they face Inability to meet documentation requirements of traditional lenders Time consuming sanction process Dealing with middle men loan NPS 80 For Q1FY24 Access Speed Our Value Proposition Transparency Service Understanding customer's via well educated & trained RMs needs 48 Hr Turn Around Time for Approval Centralised underwriting & consistent Right-size the loan through a holistic evaluation formal/informal of all sources of income Alternative documents (Life insurance policies, property deeds etc.) used for evaluation Mobility solutions for our customers, employees and sales channels for quick and efficient processes and service Mandatory counselling for customers on insurance terms sessions loan and Digital access to loan documents for the customer No prepayment charges and easy prepayment options Home visits coupled with paperless process to ensure minimal disruption to daily customer routine Dedicated Service Manager for every customer Customer app for easy access to loan statements, prepayments and raising service requests Note: Data for the period Q1FY24 (1) ~59% loans with Average ticket size between INR 0.5-1.5mn as of Q1FY24 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 11#12Distribution Strategy 0-4 4-7 7-15 Contribution to India's GDP FY'22 (%) ◆ Physical branches - 113 ●Proposed branches - 62 Digital branches - 107 282 Touchpoints Pan India Distribution driven by strategic market selection & contiguous expansion 113 123 13 282 Corporate Information Branches Districts States/UT Touchpoints Geographic Expansion States/Territories Number of Percentage of gross loan assets as on ° 6 Branches Districts Jun'23 Jun'22 Mar'23 Mar'22 Gujarat 25 22 32.6% 35.0% 32.6% 36.0% Maharashtra 19 18 14.0% 15.7% 14.4% 16.1% Tamil Nadu 22 24 13.9% 12.6% 13.7% 12.2% Business commenced in Telangana 8 12 8.9% 8.0% 8.9% 7.5% 2 new physical branches Increased presence in 4 new districts Andhra Pradesh 9 9 4.6% 3.6% 4.5% 3.2% Karnataka 6 6 7.1% 7.8% 7.5% 8.1% Rajasthan 8 5.7% 5.8% 5.7% 5.7% Madhya Pradesh 8 9 5.3% 5.0% 5.1% 4.9% Uttar Pradesh & 3 9 5.2% 4.1% 5.0% 3.9% Uttarakhand Chhattisgarh 3 4 1.9% 1.6% 1.8% 1.5% Haryana & NCR 2 2 0.8% 0.8% 0.8% 0.9% Total 113 123 100.0% 100.0% 100.0% 100.0% States/UT include states/UT from where we source loans irrespective of physical presence of a branch in those states/UT Note: Source for Contribution of states to India's GDP: NSO, MOSPI Home First Finance Company India Ltd. Disclaimer :Map not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness Investor Presentation - Q1 FY24 12#13Omni Channel Lead Generation Strategy Diversified lead generation channels | Q1 FY24 8.4% 3.2% 4.6% 2.5% 3.8% 0.3% 0.9% 0.7% Construction Digital Digital Alliances Partnerships Marketing Construction Community Micro Connector Marketing Referrals Builder Ecosystem ...effectively managed via connector app Scan and Download Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 3:26 Home Please Complete your profile to proceed Go to Profile Add a Lead Salutation to select choice 2 Name First Name F Loan Accourt ic LA Distinct Court 3:274 10 Loans-Chart › Petrels Mar 2018 May 2017 2016 MorYear of Approval Date An 2015 Seri T LAP 3:26 75.6% Connectors Profile Connect Prolle 3:207 Dashboard 09 Loans this Month Corporate Information Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion by HomeFirst RMs. 09 Loans-Last 3 Months 96.0% connectors registered on the Connector App Name Rohit Shetty Mobile 7030150333 979 Loans-Last 6 Months Number Date of 21/09/1968 Birth Pan BRIXSTIGAC Card Number D S @ B Pe 2 D 13#14Data Science Backed Centralised Underwriting Risk Management Design Tech-Led Centralised Corporate Information Salaried customers Build detailed understanding of customer via field visits by RM In-depth understanding of operating geographies and property types Low under construction exposure and low LTV 100+ data points & digitally captured data for all customers API integration with third party independent sources like Hunter, Perfios etc. All customer and internal communication, documents, photographs, videos available on a single cloud based system Consistency in underwriting Integrated CRM and Loan Management System on cloud based platform Proprietary Machine learning & Customer scoring models used for credit decision Loans Approved within 48hrs 83% For Q1FY24 12% 88% 28% 16% Г 38% Low Under Construction Risk LTV on Origination Q1FY24 ■EMI Pre-EMI 34% Q1FY24 55.8% ■Less than 50% 50-80% Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 38% Above 80% 46% Q1FY24 46.1% Low effective LTV on book ■Less than 50% ■50-80% ■Above 80% 14#15Scalable Operating Model built on Holistic Technology Usage Corporate Information Recent Tech Interventions Home First App for all stakeholders 360° view of customer for employees Electronic payments Income module for easy assessment of customers' income Digital marketing on major online media Alliances with digital players 10,000+ leads generated every month Kaisys: Internally developed lead management system with omnichannel communication API Integration with third party databases Proprietary property price predictor Machine learning models to assist underwriting E-Signature Tableau Server for easy visualization Data on Cloud Integrated CRM and loan management System Legal and Technical Portal Payment automation via Bharat Bill Pay Services and Fino Payments Bank Digital Document Management . E-NACH • • E-Sign • E- Vault • E-Stamp paper • Instant Soft Approval on App ⚫ Biometric . authentication Customer App on Kaisys: Internally developed lead management system | Mobility | | Digital Marketing | | Data Analytics | | Tech - Infra | End-To-End Digital Process For Housing Loans B magicbricks NOBROKER paisabazaar airtel Payments MyMoneyMantra Bank Inda Nal Seal the deal MARKETS Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Be Post पेमेन्ट बैंक Payments Bank III Pay Nearby 71 hora in TransUnion CIBIL III CREDITMANTRI III Moneyfy ||| Fin Mapp Your Financia Matchmaker III with omnichannel communication and personalized sales journey, integrated with bureau and third party data sources TVSCREDIT CASH 15#16Digital Adoption % Customers registered on App 91% 93% 93% 84% 87% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Unique user logins as % of active customers Customer Rating on Google Playstore 4.1 57% 54% 55% 57% 55% As of 24 Jul'23 00000 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 % of Service Requests raised on App % Non-cash collections 91% 91% 89% 88% 87% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 94% 94% 94% 95% 96% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Source: HomeFirst App Database Note: Service requests raised are a count of unique requests made by the customers on the app. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Corporate Information Average payment per user on app *36,244 Avg time spent by user on the app per session For Q1FY24 1m 46 sec No of Payments via Customer App For Q1FY24 17,353 For Q1FY24 16#17ESG at Home First Putting sustainability at core of operations#18Commitment to ESG ESG Framework ESG The Company understands the growing importance of ESG and has adopted a Board approved ESG Policy Comprehensive Policy & Governance Mechanism Robust Implementation Process An ESG Execution Team with management team participation has been created to ensure implementation of the ESG Policy The company has published Business Sustainability & Responsibility Report (BRSR) as part of Integrated Annual Report for FY22-23. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 External Reporting Monitoring and Review Mechanism 12 areas have been identified for immediate focus. Parameters for measurement and metrics for various ESG focus areas are being developed 18#19Digital Processes from start to finish to reduce Carbon Footprint Customer App Connector App ESG RM Pro App Green Operations Operational Eco-efficiency & Climate Resilience HomeFirst has a deeply ingrained Ideology of all processes being paperless across the product cycle. Implemented Electronic processes even for traditional activities such as • • . Capturing KYC documents Agreements signed digitally (59% of total in Q1FY24) E-Stamping (64% of total in Q1FY24) E-NACH mandates (65% of total in Q1FY24) This results in saving of paper, time and energy. Mobile apps . • Provided to customers, employees and connectors. This has helped cut down on branch visits, thereby saving time, fuel as well as energy. Other initiatives helped reduce use of electricity • Cloud based loan management system and CRM. • Open office structure in Head Office & Branches. More information on our tech stack from slides 14 to 16. Customer Portal Login Spotlight GET LOAN M homefirst Hi Sanjay! Home Loan Pay EMI RM Pro homefirst We you Last 60 Days Total earnings 130,000 Gold Points User A-Z On-Boarding Accept Payment Create Lead My Space My Opportunities My Contacts My Leads Custome Approved In progress Declined Total Apply for new Home Loan in just few easy steps 18 Log in the Cust your Loans 60 12 90 Transaction Login Now Create Lead Apply Now Do it yourself :: 24 % 22 Get Loan Track Loan 20 Our Products 18 Monthly lead stats Dashboard My Payments Failed Receipts Home Leaderboard Me Google rating of Homefirst Customer App 4.1 Google rating of Homefirst Connect App 4.7 Google rating of Homefirst RM Pro App 4.8 As of 24 Jul'23 As of 24 Jul'23 As of 24 Jul'23 19 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24#20Progress on Social Development Responsibility towards community Project "Sashakt”, an initiative by HomeFirst to bring an all- around improvement in the social, health and economic status of migrant factory workers living in Narol (Ahmedabad). Sashakt Skilling centre was launched at Narol with a capacity of 1000+ beneficiaries annually for courses such as Tailoring, Beautician, Data Entry, GST with Tally and General Duty Assistant. 250+ beneficiaries have completed the 3-month skilling course from Sashakt Skilling Center; 220+ were awarded certificates by National Skill Development Corporation. On the occasion of World Environment Day, a workshop on Seedballs was organized in 5 adopted schools in the Narol area. Students made 5000+ seed balls. The seed ball bombing was done in Polo Forest near Ahmedabad. Now we have total 2000+ families enrolled under Sashakt Project "Mahila Shram Shakti Kendra", an initiative by HomeFirst in Ahmedabad & Surat to empower the women migrant workers facing extreme vulnerabilities. With the objective to have baseline information around the conditions of women workers 354 women shramik card were facilitated across the centres. 06 health camps were organised at the MSSK centre with consultation given to 350 patients including children. Great Responsibility towards employees Place Certified as "Great Place To Work" by GPTW Institute for 3 successive years Work Certified DEC 2022-DEC 2023 INDIA Employee Training and Development Formal talent pipeline development strategy. During the period Q1FY24, 4675 manhours of training was provided to employees though various courses Employment & Labour Practices Adopted policies for creating a safe and conducive as well as inclusive work environment for its employees: . HR Policy . Equal Opportunity Policy Parental Leave Policy This is reflected in the diverse employee base consisting of . 26% women overall • 52% women at head office ~22% women in senior management Employee Ownership As of 30 Jun'23, 358 employees are covered under ESOP programs comprising of 32.4% of employee base Human Rights, Health & Safety Employee Development and Wellbeing: We have conducted programs for Financial, Emotional and Physical wellness (12 sessions for Q1FY24) for our employees. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 ESG homefirst निर्माण कार्य से जुड़ी महिला बमिकों के लिए lewis he UNC PHIC CON be abe निर्माण गि ed & fire at महिला अम एकजुटता 20 20#21Progress on Social Development ESG • . • • Responsibility towards customers Customer Satisfaction Customer focus: Playing a key role in Financial inclusion by facilitating affordable home loans and empowering women borrowers. EWS and LIG customers account for ~67% of AUM. Feature rich mobile apps to provide seamless service and to track NPS score as a feedback mechanism. Our NPS score for Q1FY24 is 80. Prepayment facility provided on the Customer App to "nudge" customers towards prudent finance management. 93% of active customers are registered on HomeFirst Customer Portal App. Android Rating is 4.1 (24 Jul'23). Throughout the duration of PMAY programme, a total of 38,521 customers were assisted with the PMAY subsidy benefit from NHB, amounting to cumulative credit of Rs. 966.7 Cr to their account. This has helped reduce ~26 of Loan Amount for those customers ESG Initiatives Sustainable Finance • Funds raised from IFC to finance affordable housing and green housing. HomeFirst raised Rs 280 crores from International Finance Corp (IFC) through up to 7-year debt. Link Funds approved from DFC to support women borrowers for financing affordable housing. U.S. International Development Finance Corporation (DFC) Board of Directors approved a $75 million loan to HomeFirst to support affordable housing mortgage loans to women low-income borrowers. Link ESG Risk Rating - Amongst best in the BFSI Industry in India . MorningStar Sustainalytics rated HomeFirst an ESG Risk Rating of 16.2 with Low Risk and Strong rating for ESG Risk Management. Link ESG Risk Rating 16.2 Ranking CORE ? Low Risk Industry Group (1st = lowest risk) Diversified Financials 84 out of 915 Universe Negligible 0-10 Low Medium 10-20 20-30 30-40 High Severe 40+ Global Universe 1945 out of 15634 The company published its Sustainability Report for the year FY22-23 as part of its Integrated Annual Report. Link: https://homefirstindia.com/files/Sustainability%20Report.pdf. . to Link: Grievance Redressal Policy is in place to receive and respond customer complaints. https://homefirstindia.com/policy/complaints-grievances/ Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 • The Company received a Certificate of Merit in PMAY Empowering India Awards 2022 • Enhanced training measures by implementing training sessions for Prevention of Sexual Harassment (POSH) and Human Safety 2 21#22Strong Governance Structure ESG • Work Sustainably & Ethically Sustainable Finance We promote Financial Inclusion. We have customers belonging to EWS and LIG categories which account for 67% of our book size. • Overall, ~90% loans have woman as borrower Primary applicant in 15% of AUM • + Atleast 1 woman co-borrower in 75% of AUM Code of Conduct and Business ethics Company has Code of Conduct for its employees which has operational guidelines. Link We have a code of conduct for our connectors Link Continuous training and communication on Whistle Blower and POSH (Prevention of Sexual Harassment) . • Governance at core Corporate Governance Core competencies of Independent Directors directly relevant to company's operations. Diverse Board, Senior management and employee base. The Company has also adopted the following policies to ensure ethical, transparent and accountable conduct: . Customer Grievance Policy (Link) Code of Conduct for the Board of Directors and Senior Management Personnel (Link) Fair Practice Code (Link) Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (Link) Policy on Prevention of Sexual harassment (Link) Vigil Mechanism and Whistle blower (Link) Know Your Customer (KYC) and Anti Money Laundering Measures Policy (Link) Internal Guidelines on Corporate Governance (Link) Separate Chairman & Managing Director position Experienced Board & Management with diversified expertise across Technology, Financial Inclusion & Risk Management 7 of 8 Directors are non-executive 4 of 8 Independent Directors 2 of 8 Woman Directors Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 22 22#23Strong Governance Practice . • . • Top-tier Corporate Governance High Independent Directors representation in all Board Committees Highly experience Board & Management Team on Risk Management committee. Company's risk management framework is driven by its Board and its subcommittees including the Audit Committee, the Asset Liability Management Committee and the Risk Management Committee. "Risk Management Committee” meetings on matters including Operational, Risk oversight, fraud prevention and control. Corporate Governance Structure Board Level Committee Management Committee Board of Directors Audit Committee Nomination and Stakeholder Remuneration Committee Relationship Committee Corporate Social Responsibility Committee Credit Committee Grievance Redressal Committee Asset-liability Committee ESG Risk Management Committee IT Strategy Committee Compliance Function • Dedicated Chief Compliance Officer (CCO) • Nodal Officer for NHB • Focus on RBI/ NHB/SEBI compliance • Periodic Compliance Tracker Internal Audit Function • Independent function • Risk Based • Internal Audit Regular Branch Audit • Annual HO Process Audit Regulatory Capital Risk Assessed in ICAAP Stress Test Clean Track Record Risk Management Framework Credit Risk NO Defaults. NO Auditor qualification. NO Re-statements of financials. NO Allegations of financial imprudence. Implemented 3 ESOP plans. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Market Risk • Strategic Risk • CRM Risk • Reputation Risk • HR Risk Operation Risk • Liquidity Risk • Cyber & info Risk • Credit Concentration • Interest Rate Risk • Compliance Risk • ESG Risk • Credit Risk • Liquidity Risk • Credit Concentration ⚫ Interest Rate Risk Risk Assessment • Regulatory Approach • Credit/Property Criteria • Parameter tracking Risk Control • Mitigation / Risk Limits • Deviation approval matrix Reporting • Regulatory • Internal MIS • Disclosures 23 23#24Business Updates#25Healthy Growth in Loan Book and Disbursements Last 5 Years Disbursement (*Mn) Last 5 Quarters 8,691 8,952 7,804 6,612 7,022 30,129 20,305 15,728 16,183 10,966 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Assets Under Management (Mn) Last 5 Years 71,980 53,803 41,411 36,184 24,436 FY19 FY20 FY21 FY22 FY23 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Last 5 Quarters 77,759 71,980 67,512 62,754 58,319 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Business Updates All time high disbursement in the quarter, q-o-q growth of 3.0% 33.3% growth y-o-y 8.0% growth q-o-q 31% CAGR (4 Years FY19-FY23) 6.5% BT Out rate for Q1FY24 (annualized) 25 25#26Consistent Portfolio Matrix | Jun'23 1% 12% 0 87%- AUM by Product - ■Housing Loan Shop Loans ■LAP Sharp focus on housing loans 19% AVG: 742 Credit Bureau Score 81% AUM by Credit history 31% 69% 2% 11% 10% ■ Have Credit History 18% ■New to Credit ATS: 11.2 L* Both credit tested and new to credit customers 32% All figures as of Jun'23 * Loans originated for Co-Lending are excluded while computing ATS Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 AUM by Occupation ■ Salaried ■Self Employed Business Updates High ratio of salaried customers AUM by Ticket Size ■ Upto 0.5mn 0.5mn 1mn ■1mn 1.5mn 1.5mn - 2.0mn ■ 2.0mn - 2.5mn Above 2.5mn Granular loan book 27% 26 46#27Competitive Spreads Portfolio Yield COB Spread Last 5 Years Net Interest Spread Movement Last 5 Quarters Business Updates Repricing schedule 25bps w.e.f 1st Jul'22 50bps w.e.f 1st Dec'22 50bps w.e.f 1st Apr 23 13.7% 13.4% 12.9% 13.0% 13.1% 12.8% 12.7% 13.0% 13.1% 12.3% Competitive Cost of Borrowing 8.8% 8.4% 8.0% 7.9% 8.0% 7.2% 7.4% 7.4% 6.9% 7.1% FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 5.8% 5.8% 5.7% 5.5% 5.7% Origination yield for Q1FY24 stood at 13.6% * 5.6% 5.7% 5.0% 4.1% 3.9% FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 * Loans originated for Co-Lending are excluded while computing Incremental Yield for Q1FY24 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Marginal COB for Q1FY24 Overall: 7.6% Ex NHB: 8.8% 27 27#28Healthy Leading Indicators Bounce rate 9.5% 10.0% 10.9% 10.5% Bounce rate: On the day of EMI presentation COVID WAVE -1 COVID WAVE -2 36.4% 28.3% Business Updates Bounce rates are range-bound 20.1% 17.3% 18.3% 16.5% 15.7% 15.6% 14.5% 14.9% 15.0% 15.1% 14.0% 13.6% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Jul'23 Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 888 28#29Healthy Leading Indicators Collection Efficiency (1) Unique Customers (2) Collection Efficiency Business Updates Collection efficiency at normal levels 98.7% 98.5% 99.3% 98.0% 98.8% 98.5% 98.8% 98.4% 98.5% 97.8% 98.2% 97.2% 98.4% 97.3% 98.0% 98.8% 98.9% 97.2% 96.9% 97.3% 97.4% 97.4% 97.3% 97.8% 97.3% 97.7% 97.5% 96.9% 97.1% 97.5% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Note: (1) Collection Efficiency =Total # of EMIs received in the month (including arrears of previous months) / Total # of loan accounts whose EMIs are due in the month (2) Unique customers =# of customers who made at least one payment in the month / Total # of Customers whose EMIs' are due in the month Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 29 29#30Sound Credit Indicators DPD 1+ / POS DPD 30+/POS % Business Updates Stage 3/POS Stage 2/POS 6.2% 5.3% 5.0% 4.7% 4.4% 4.4% 4.3% 4.0% 4.0% 3.2% Asset quality at 4.1% 3.7% 3.5% 3.3% 11110 3.0% healthy levels 1.8% 2.7% 2.7% 2.9% 2.0% 2.3% 2.1% 1.9% 1.7% 1.8% 1.6% 1.6% 1.6% 0.8% 1.0% 2.3% 1.4% 1.4% 0.9% 0.9% 1.1% 1.4% 1.2% 1.1% 1.3% Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun 22 Sep'22 Dec'22 Mar'23 Jun'23 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun 22 Sep'22 Dec'22 Mar'23 Jun'23 Gross Stage 3 / POS (GNPA) % Net Stage 3 / Net POS (NNPA) % Re-classification due to RBI circular Re-classification due to RBI circular 2.3% 1.8% 2.1% 1.7% 1.9% 1.8% 1.0% 1.6% 0.9% 1.0% 0.7% 1.8% 0.8% 0.7% 1.4% 1.6% 1.6% 0.7% 0.6% 1.3% 1.2% 0.9% 1.1% 0.8% 1.1% 1.1% 0.8% 0.7% 0.6% 0.8% 0.5% 0.6% 0.6% 0.6% 1.3% 0.9% 1.2% 1.1% 1.1% 0.9% 1.0% 0.9% 0.9% 0.7% 0.7% 0.6% 0.5% 0.5% Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun 22 Sep 22 Dec'22 Mar'23 Jun'23 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun 22 Sep'22 Dec'22 Mar 23 Jun'23 Pursuant to the RBI circular dated 12 Nov 2021 - "Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarifications", the Company has aligned its definition of default and taken steps to comply with the norms/ changes for regulatory reporting, as applicable. Such alignment has resulted in classification of loans amounting to ₹399.55 millions as Gross Stage 3 (GNPA) as at Jun'23 in accordance with regulatory requirements. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 30#31Diversified funding profile at competitive Cost of Borrowing DA & Co-lending NCD NHB Refinance NBFC Public Sector Banks Pvt Sector Banks Borrowings Mix and Cost of Borrowing trend 39,322 40,039 40,150 Jun'21 Sep'21 Dec'21 44,919 Mar'22 48,387 Jun'22 Business Updates 52,281 58,009 59,556 68,215 Total Borrowings (Mn) (1) Sep'22 Dec'22 Mar'23 Jun'23 23% 25% 23% 22% 21% 19% 19% 17% COB% 22% (Represents quarterly avg.) 4% 6% 3% 3% 6% 6% 6% 5% 4% 15% 22% 26% 25% 21% 17% Long Term Credit Rating ICRA AA- 'Stable' CARE AA- 'Stable' 24% 23% 27% 2% 2% 3% 8.0% 3% 7.9% 3% India Ratings AA- 'Stable 1% 2% 2% 2% 22% 20% 24% 7.4% 26% 7.2% 7.1% 7.2% 7.2% 7.1% 24% 24% 22% 22% 25% 6.9% Short term rating A1+ (ICRA and India Ratings) 21% >>> 21% Jun'21 Sep'21 20% Dec'21 23% Mar'22 25% Jun'22 32% Our banking relationships Sep'22 32% Dec'22 32% Mar'23 32% State Central Public Bank of India Bank of Union Bank HDFC Bank ICICI Bank Axis Bank India Private South Indian Bank Karur Karnataka Bank J & K Bank Vyas Bank DCB Bank Sector Sector NBFC Bajaj Finance Bank Bank IDBI Bank Bank of India Indian Bank Federal Bank Kotak Mahindra HSBC Bank Qatar Shinhan CSB National Yes Bank Bank Bank Bank 14,775.6 Mn outstanding 20+ lines (1) Total Borrowings includes Off book Direct Assignment and Co-Lending Home First Finance Company India Ltd. Validation by NHB - Single largest lender with 2,800 Mn NCD investment by IFC - a step towards sustainability and green financing Investor Presentation - Q1 FY24 Jun'23 ZERO borrowing through commercial papers Diversified banking relationships with 26 lending partners = 31#32ALM Position as of Jun'23 - Cumulative Inflow Outflow Surplus (Mn) 6,322 9,283 11,457 15,622 27,034 23,562 22,584 14,503 13,301 8,181 0-3months 3-6 months 34,692 23,236 6-12 months 71,086 55,463 1-3 years Classification of assets and liabilities under different maturity buckets is based on the same estimates and assumptions as used by the Company for compiling the detailed ALM return submitted to NHB. Investor Presentation - Q1 FY24 Home First Finance Company India Ltd. 1,02,046 75,012 1,25,832 Business Updates 1,02,270 Robust ALM profile ensuring sufficient liquidity buffers 5+ years 3-5 years Cumulative Positive flows across all the time buckets 32#33Assignment and Co-lending Transactions Direct Assignment Transactions 1,844 Business Updates Co-Lending Transaction *3,003 Mn 4,646 Mn *3,784 Mn 1,143 Mn Consistent demand for assignment of the company's portfolio 1,273 1,159 1,183 1,140 1,154 1,143 1,050 879 857 894 348 350 Generated 77 166 301 business from 802 806 691 793 593 co-lending transactions Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Our partners in Assignment and Co-Lending Direct Assignment Central Bank of India Union Bank of India HDFC Bank State Bank of India Bank of Baroda Central Bank of India Co-Lending Indian Bank Yes Bank Union Bank of India Added State Bank of India and Bank of Baroda as our DA partners Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 33#34Strong Liquidity Position Liquidity Buffer as on Jun'23 (in Mn) Unencumbered Cash and Cash equivalent Un-availed Sanction from NHB Un-availed Sanction from Banks Total 8,622 12,295 20,917 Particulars (in *Mn) Q2FY24 Q3FY24 Q4FY24 Q1FY25 Opening Liquidity 20,917 21,708 22,312 22,635 Add: Principal Collections. 4,799 4,782 4,718 4,640 & Surplus Operations Less: Debt Repayments 4,008 4,178 4,395 4,883 Closing Liquidity 21,708 22,312 22,635 22,392 Data as per IGAAP Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 * 12,472 million Liquidity raised during Q1FY24 Business Updates 34#35Financial Updates#36Financial Highlights Profit After Tax (Mn) 1,001 796 457 2,283 (1) 1,741 512 543 587 640 691 Equity Raised (Mn) 1508 3281 3450 32 32 Strong profit growth Net worth (Mn) 33 53 8 18 29 29 18,173 13,805 9,334 5,227 15,737 النت Financial Updates 53 15 16,279 16,856 17,483 18,173 18,680 Robust NW to support growth FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Jun 22 Sep'22 Dec'22 Mar'23 Jun'23 Return on Average Assets Return on Average Equity A/E -> 4.5x 4.1x 3.5x 3.3x 3.5x 3.3x 3.5x 3.6x 3.7x 3.9x 15.0% 14.4% 13.5% 13.7% (1) 12.8% 13.1% ROE touched milestone of 11.8% 10.8% 10.9% 15.0% during (1) 3.6% 3.9% 3.9% 3.8% 3.8% 3.9% 3.9% 8.7% Q1FY24 2.7% 2.4% 2.5% 00000 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Note: Fiscal year ending 31st March. A/E -Average Total Assets / Average Equity. (1) Adjusted PAT, Adjusted RoA and Adjusted RoE FY22 is computed considering Adjusted PAT without the impact of one-time deferred tax liability adjustment Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 36#37ECL Provisions Summary Particulars (in Mn) Stage 1 Stage 2 Stage 3 Loan Commitment Total For period ended Jun'23 Loans - Principal Outstanding 63,875.0 841.7 1077.3 ECL Provision 179.3 86.1 334.3 15.8 Net Loans - Principal Outstanding 63,695.7 755.6 743.0 ECL Provision % 0.3% 10.2% 31.0% 65,794.0 615.5 65,178.5 0.9% Financial Updates For period ended Mar❜23 Loans Principal Outstanding - ECL Provision 58,890.8 656.5 973.9 60,521.2 164.4 69.1 330.7 15.1 Net Loans - Principal Outstanding 58,726.4 587.4 643.2 ECL Provision % 0.3% 10.5% 34.0% 579.3 59,941.9 1.0% For period ended Jun'22 Total Provision Coverage Ratio Loans - Principal Outstanding 46,000.9 656.8 1,020.0 47,677.7 Jun'23 57.1% (90.8% Pre-RBI circular) ECL Provision 150.1 76.5 Net Loans - Principal Outstanding ECL Provision % 45,850.8 580.3 228.8 791.2 11.6 467.0 Mar'23 59.5% 47,210.7 (104.8% Pre-RBI circular) 0.3% 11.6% 22.4% 1.0% Jun'22 45.8% (81.0% Pre-RBI circular) Pursuant to the RBI circular dated 12 Nov 2021 - "Prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) pertaining to Advances - Clarifications", the Company has aligned its definition of default and taken steps to comply with the norms/changes for regulatory reporting, as applicable. Such alignment has resulted in classification of loans amounting to 399.55 millions as non-performing assets (Stage 3) as at 30 Jun 2023 in accordance with regulatory requirements. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 37 34#38Annexures#39Quarterly and Annual Profit and Loss Statement Financial Updates Particulars (in Mn) Q1FY24 Q4FY23 Q1FY23 QoQ YOY FY23 FY22 YOY Interest Income on term loans 2,166.2 1,937.2 1,449.0 11.8% 49.4% 6,825.0 4,770.5 43.1% Net gain on DA 125.7 112.0 99.0 380.4 678.4 Income other than interest income on term loans (1) 306.2 263.8 144.5 750.6 508.2 Total Income 2,598.1 2,313.0 1,693.4 12.3% 53.4% 7,956.0 5,957.1 33.6% Interest expense 3,032.6 2,148.2 41.2% 1,064.9 925.9 604.6 3,792.4 2,622.3 44.6% Net Interest Income 1,101.3 1,011.3 845.3 8.9% 30.3% Net Total Income 1,533.1 1,387.1 1,088.8 10.5% 40.8% 4,923.4 3,808.9 29.3% Operating Expenses (2) PPOP Credit Cost Profit before tax Tax expense One-time tax adjustment Profit after tax Adjusted PAT(3) Basic EPS 556.0 477.5 389.7 1,756.0 1,295.7 977.2 909.6 699.1 7.4% 39.8% 3,167.4 2,513.2 26.0% 76.9 69.6 36.1 215.2 250.2 900.3 840.0 663.0 7.2% 35.8% 2,952.2 2,263.0 30.5% 209.1 199.7 150.5 669.3 522.1 (120.1) 691.2 640.3 512.5 2,282.9 1,861.0 691.2 640.3 512.5 8.0% 34.9% 2,282.9 1,740.8 31.1% Diluted EPS 7.8 7.6 7.3 7.1 5.8 26.0 21.3 5.7 25.2 20.5 (1) Income other than interest income on term loans includes interest on bank deposits, other interest income, fees and commission income, other operating income and other income (2) Operating Expenses is the sum of Employee Benefits Expenses, Depreciation and Amortization, Interest on lease liability, Bank charges and other Expenses for the relevant year or period as per the financial statements. (3) YoY growth in PAT computed considering Adjusted PAT for FY22 without the impact of one-time deferred tax liability adjustment Investors & Analyst can download the excel version of operational & financial numbers from our website link. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 39#40RoE Tree Financial Updates Particulars Q1FY24 Q4FY23 Q1FY23 FY23 FY22 Interest Income on term loans / Average total assets 12.1% 11.7% 10.9% 11.5% 9.9% Net Gain on DA / Average total Assets 0.7% 0.7% 0.8% 0.6% 1.4% Income other than interest income on term loans/ Average total assets 1.7% 1.6% 1.1% 1.3% 1.1% Total Income / Average total assets 14.5% 14.0% 12.8% 13.4% 12.4% Interest on borrowings and debt securities / Average total assets 6.0% 5.6% 4.6% 5.1% 4.5% Net Interest Margin 6.1% 6.1% 6.4% 6.4% 5.4% Net Total Income / Average total assets Operating Expenses / Average total assets PPOP/ Average total assets Credit Cost Average total assets Profit before tax / Average total assets Tax expense / Average total assets 8.5% 8.4% 8.2% 8.3% 7.9% 3.1% 2.9% 2.9% 3.0% 2.7% 5.4% 5.5% 5.3% 5.3% 5.2% 0.4% 0.4% 0.3% 0.3% 0.5% 5.0% 5.1% 5.0% 5.0% 4.7% 1.1% 1.2% 1.1% 1.1% 1.1% One-time tax adjustment/ Average total assets (0.2%) Profit after tax on average total assets 3.9% 3.9% 3.9% 3.9% 3.9% Adjusted PAT on average total assets (ROA)(1) 3.9% 3.9% 3.9% 3.9% 3.6% Leverage (Average total assets / average Equity or average Net worth) 3.9 3.7 3.3 3.5 3.3 Profit after tax on average equity or average Net worth (ROE) (1) Average interest earning assets as % of average total assets Average interest bearing liabilities as % of average total assets 15.0% 14.4% 12.8% 13.5% 11.8% 88.1% 88.1% 85.9% 87.8% 80.2% 72.8% 71.6% 68.3% 69.8% 67.7% Interest Earning Assets represents Loans - Principal outstanding (Gross) for the relevant year or period. Interest bearing liabilities represents borrowings (including debt securities) for the relevant year or period. (1) Adjusted RoA and Adjusted RoE for FY22 is computed considering Adjusted PAT FY22 without the impact of one-time deferred tax liability adjustment Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 40 40#41Key Financial Ratios Particulars Profit after tax on average total assets (ROA) Q1FY24 Q4FY23 Q1FY23 FY23 FY22 3.9% 3.9% 3.9% 3.9% 3.6%(1) Leverage (Average total assets / average Equity or average Net worth) 3.9 3.7 3.3 3.5 3.3 Profit after tax on average equity or average Net worth (ROE) 15.0% 14.4% 12.8% 13.5% 11.8% (1) Cost to Income Ratio (Operating Expenses / Net Total Income) 36.3% 34.4% 35.8% 35.7% 34.0% Operating Expenses / Average total assets Debt to equity ratio CRAR (%) CRAR-Tier I Capital CRAR Tier II Capital Book Value Per Share 3.1% 2.9% 2.9% 3.0% 2.7% 3.0 2.6 2.3 2.6 2.2 46.0% 49.4% 52.3% 49.4% 58.6% 45.5% 48.9% 51.8% 48.9% 58.0% 0.5% 0.5% 0.5% 0.5% 0.6% 212.0 206.5 185.7 206.5 179.6 (1) Adjusted RoA and Adjusted RoE for FY22 is computed considering Adjusted PAT without the impact of one-time deferred tax liability adjustment Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Financial Updates 41#42Balance Sheet Particulars (in *Mn) Jun'23 FY23 FY22 ASSETS Cash & cash equivalents and Other bank 5,437.2 2,984.1 6,678.5 balance Loans 65,194.3 59,957.0 43,048.7 Investments 3,656.8 2,808.0 0.0 Other financial assets 1,325.2 1,241.0 1,164.8 Property, plant and Equipment* 257.0 253.5 200.0 Deferred Tax Assets (Net) 22.2 28.3 0.0 Non-financial assets other than PPE 165.5 98.4 76.7 TOTAL ASSETS 76,058.2 67,370.3 51,168.7 LIABILITIES & EQUITY Payables Debt Securities Borrowings Other financial liabilities Provisions Deferred Tax Liabilities (Net) Other non-financial liabilities Equity TOTAL LIABILITIES & EQUITY 114.3 149.1 2,771.1 3,469.5 53,492.6 44,665.2 62.0 1,687.8 32,979.9 778.1 754.5 569.1 74.4 59.6 45.4 0.0 0.0 17.4 148.0 99.0 70.2 18,679.7 18,173.4 15,736.9 76,058.2 67,370.3 51,168.7 * Including right to use assets. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Financial Updates 42#43Consistent Financial Performance over the years Particulars (in Mn) Operational Information Number of Branches Financial Updates FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR % 36 42 60 68 72 80 111 Loan disbursals 4,244 7,455 15,728 16,183 10,966 20,305 30,129 AUM 8,473 13,559 24,436 36,184 41,411 Number of Employees 200 382 675 696 687 53,803 851 71,980 42.8% 993 Financial Information Income from Operations 916 1,326 2,637 4,108 4,891 5,957 7,910 Interest Expenses 533 647 1,249 1,912 2,166 2,148 3,033 Net Interest Income 319 627 1,040 1,513 1,895 2,622 3,792 Operating Expenses (1) 262 424 735 1,046 1,064 1,296 1,756 Credit Cost 17 29 73 165 322 250 215 Profit before tax 104 243 653 1,073 1,340 2,263 2,952 Adjusted PAT(2) Net Worth Ratios 67 160 457 796 1,001 1,741 2,283 80.2% 3,064 3,252 5,227 9,334 13,805 15,737 18,173 Cost to Income 68.4% 61.0% 50.3% 45.8% 39.0% 34.0% 35.7% Return on Total Assets (2) 0.8% 1.4% 2.4% 2.7% 2.5% 3.6% 3.9% Return on Equity (2) 2.9% 5.1% 10.8% 10.9% 8.7% 11.8% 13.5% Gross Stage 3 assets / Gross NPA 0.7% 0.6% 0.8% 1.0% 1.8% 2.3% 1.6% Net Stage 3 assets / Net NPA CRAR 0.6% 0.5% 0.6% 0.8% 1.2% 1.8% 1.1% 68.5% Leverage 3.4 43.0% 3.7 38.5% 4.5 49.0% 4.1 56.2% 3.5 58.6% 3.3 49.4% 3.5 (1) Operating Expenses is the sum of Employee Benefits Expenses, Depreciation and Amortization, Interest on lease liability, Bank charges and other Expenses for the relevant year or period as per the financial statements. (2) In FY22, company had reversed DTL created on amount transferred to special reserve. Adjusted PAT, ROA and ROE computed excluding the impact of one time deferred tax liability adjustment. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 43 43#44Experienced and Diverse Board Mr. Deepak Satwalekar Chairman/Independent/Non-Executive Director Mr. Deepak Satwalekar was associated with HDFC Limited as a Director and HDFC Standard Life Insurance Company Limited as the MD & CEO. Currently he is associated with Asian Paints Limited and Wipro Limited as an Independent Director. He has also been recognized as a distinguished alumnus by the Indian Institute of Technology, Bombay. He holds a bachelor's degree in mechanical engineering from Indian Institute of Technology, Bombay and a master's degree in business administration from the American University. Appointed as an Independent Director w.e.f. October 23, 2019 Ms. Sucharita Mukherjee Independent/ Non-Executive Director Ms. Sucharita Mukherjee is co-founder of Kaleidofin, a neo-bank that provides financial solutions to underbanked customers in India. Prior to Kaleidofin, she co-founded IFMR Group and most recently was the group CEO of IFMR Holdings. She founded Northern Arc Capital, building capital markets access for financial inclusion and Northern Arc Investments, an alternatives fund management platform focused on informal sector finance. She is an alumnus of IIM Ahmedabad and holds an undergraduate degree in economics from Lady Shri Ram College, Delhi University. She has also worked with Deutsche Bank and Morgan Stanley in London. Mr. Narendra Ostawal Nominee/Non-Executive Director Ms. Geeta Dutta Goel Independent/Non-Executive Director Ms. Geeta Dutta Goel is Country Director for Michael and Susan Dell Foundation in India. She manages the strategy and implementation of the foundation's work in India in two key areas of Education and Family Economic Stability. Geeta has served as the Chairperson of India's Impact Investors Council from 2017-2019, and has been on several taskforces on Responsible Finance with the World Bank's Consultative Group to Alleviate Poverty. Geeta holds a bachelor's degree in economics from Lady Shri Ram College for Women, University of Delhi and a post graduate diploma in management from the IIM, Ahmedabad. Mr. Divya Sehgal Nominee/ Non-Executive Director Mr. Divya Sehgal is a Partner at True North and leads their investments in the Financial Services industry. Divya holds a Bachelor's degree in Electrical Engineering from IIT, Delhi and holds a Post Graduate Diploma in Management from IIM, Bengaluru. Prior to joining True North, he was Founder and COO of Apollo Health Street, a leading healthcare outsourcing firm and one of the top five in its space globally. Before that he worked as a consultant with McKinsey, with the corporate finance team at ANZ and as an entrepreneur at Emedlife which eventually merged with the Apollo Group. Mr. Narendra Ostawal joined Warburg Pincus in 2007 and is currently designated as Managing Director for healthcare and financial services. Prior to joining Warburg Pincus, Mr. Ostawal has worked with 3i India and McKinsey & Company. He is a Director of Avanse Financial Services Limited, Carmel Point Investments India Private Limited, Computer Age Management Services Limited, Fusion Micro Finance Private Limited and IndiaFirst Life Insurance Company Limited. Mr. Ostawal is a Chartered Accountant and an MBA from IIM, Bangalore. Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 Mr. Manoj Viswanathan Managing Director and CEO Mr. Anuj Srivastava Independent/Non-Executive Director - Leadership Mr. Anuj Srivastava is the co-founder and Chief Executive Officer of Livspace a home interiors and renovation platform. Before setting up Livspace, Anuj was heading product marketing and growth at Google where he was responsible for building, launching and scaling products such as Google Wallet, Google Adsense, Google Local and Google Adwords. Anuj was also a lead on the integration team for Google's acquisition of DoubleClick. Anuj has completed his BTech at the IIT Kanpur and holds an MBA degree from London Business School. Mr. Maninder Singh Juneja Nominee/Non-Executive Director Mr. Maninder Singh Juneja is an MBA from IIM Lucknow, Maninder has over 27 years experience across industries. Prior to True North, Maninder was the Group Head for ICICI Bank's Retail Banking group, covering Strategy, Products, Small Business Loans, Branch Banking and distribution channels. He was also leading the bank's various efforts in the area of payments and service innovations, many of which are industry firsts. He started his career with Godrej and has worked with Godrej GE Appliances and GE Transportation financial services. Mr. Manoj Viswanathan holds a Bachelor's degree in Electrical & Electronics Engineering from BITS, Pilani and an MBA from XLRI Jamshedpur. He possesses experience of more than 25 years in consumer lending, encompassing sectors such as automobile loans, mortgages, and unsecured lending. He is considered to have played an important role in building the branch- based consumer-lending model for Citigroup in India. He is the Managing Director and CEO of Home First Finance Company. 44#45Company Thank You For further information, please contact CIN: L65990MH2010PLC240703 Mr. Manish Kayal, Head - Investor Relations [email protected] Investor Relations - HomeFirst [email protected]#46Glossary Terms AUM - Assets Under Management POS - Principal Outstanding NII - Net Interest Income NIMS - Net Interest Margin DA - Direct Assignment / Assigned Assets Explanation Assets Under Management/Gross Loan Assets represents the aggregate of current principal outstanding and overdue principal outstanding, if any, for all loan assets under management which includes loan assets held by the Company as of the last day of the relevant year or period as well as loan assets which have been transferred by the Company by way of assignment and are outstanding as of the last day of the relevant year or period. Loans - Principal outstanding represents gross principal outstanding of loans as of the last day of the relevant period or year as per the restated financial statements. Net Interest Income represents interest income on term loans minus Interest on borrowings and Interest on debt securities for the relevant year or period Net Interest Income / Average total assets Assigned Assets represents the aggregate of current principal outstanding and overdue principal outstanding, if any, for all loan assets which have been transferred by the Company by way of assignment as of the last day of the relevant year or period. The Assigned Assets represent the direct assignments and not pass through certificate. DPD Days Past Due DPD 30+ Gross Stage 3 / POS % Opex to Assets Cost to Income Glossary DPD 30+ represents sum of Stage 2 loan assets and Stage 3 loan assets at the end of the relevant year or period % Stage 3 loan assets / Loans - Principal Outstanding Operating Expenses / Average Total Assets Operating Expenses / Net Total Income Home First Finance Company India Ltd. Investor Presentation - Q1 FY24 46 46#47GS008 GREEN SPACE by home first Keep blowing the horn! We will miss the function! POM POM Beep Веер Веер You can't go faster by blowing the horn... there's a traffic jam! Noise polluter! BOW WOW This will silence her! Hehe! Keep quiet!