#1Ref. No. AAVAS/SEC/2023-24/256 Date: May 24, 2023 To, Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA To, The National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Mumbai - 400051 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 Scrip Symbol: AAVAS Dear Sir/Madam, Scrip Code: 541988 Sub: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Outcome of Investor and Analyst Day With respect to captioned subject and with reference to our letter dated May 05, 2023 vide Ref. No. AAVAS/SEC/2023-24/208, this is to inform you that the Company had organized an Investor and Analyst Day today, i.e. Wednesday, May 24, 2023 at 4.30 P.M. at Hotel Trident, BKC, Mumbai wherein the Senior Management of the Company interacted with the Investors and Analysts to discuss Company's vision and performance. With respect to above please find below details: Sr. No 1 2 Particular Investor Presentation discussed with the investors and analysts Video Recording of the meet Details Attached https://www.aavas.in/media During the aforesaid meet, no unpublished price sensitive information was shared with the investor and analyst. The above information is also being made available on the website of the Company at https://www.aavas.in/investor-relations/investor-intimation You are requested to take the same on your record. Thanking You, For Aavas Financiers Limited SHARAD Digitally signed by PATHAK SHARAD PATHAK Date: 2023.05.24 23:32:03 +05'30' SHARAD PATHAK COMPANY SECRETARY & COMPLIANCE OFFICER (FCS-9587) AAVAS FINANCIERS LIMITED CIN NO.: L65922RJ2011PLC034297 Regd. & Corp. Office: 201-202, 2nd Floor, Southend Square, Mansarover Industrial Area, Jaipur - 302020 Tel: +91 141 661 8888 | E-Mail: [email protected], Website: www.aavas.in Aavos#2Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Investor & Analyst Day Presentation May 2023#3Safe Harbor Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA This presentation and the accompanying slides (the "Presentation"), which have been prepared by Aavas Financiers Ltd. (the "Company"), without any specific objectives and solely for information purposes and do not constitute directly or indirectly any advertisement, advise, 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. 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. Further, this presentation is being made on uniform basis and no selective disclosure of the same have been made by the Company. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigations as they may consider necessary or appropriate for investment purposes. This presentation contains certain forward-looking statements concerning the Company's future business prospects, market opportunities 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. These statements can be recognized using words such as "expects," "plans," "will," "estimates," "projects," "marks," "believe" or other words of similar meaning. 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, micro and macro geo-political issues, 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. Any reliance placed on this presentation by any person for its investment strategy shall be at his own risk. 2#4Speakers for the Day Sachinder Bhinder Managing Director & CEO 25+ years of experience Nishant Sharma Promoter Nominee Director 20+ years of experience Kedaara Capital Ghanshyam Rawat President & CFO 30+ years of experience Siddharth Srivastava Chief Business Officer 20+ years of experience Ripudaman Bandral Chief Credit Officer 25+ years of experience Manas Tandon Promoter Nominee Director 20+ years of experience Partners Group Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Ashutosh Atre President & Chief Risk Officer 30+ years of experience Surendra Sihag Chief Collections Officer 22+ years of experience Jijy Oommen Chief Technology Officer 25+ years of experience Rajaram Balasubramaniam Chief Strategy Officer & Analytics Head 24+ years of experience Anshul Bhargava Chief People Officer 35+ years of experience 3#5Agenda Aavas 3.0 Financial Capital Business and Growth Risk, Underwriting & Collections Cultural DNA, People and ESG Technology Analytics Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 4#6Speakers for the Day Sachinder Bhinder Managing Director & CEO 25+ years of experience Nishant Sharma Promoter Nominee Director 20+ years of experience Kedaara Capital Ghanshyam Rawat President & CFO 30+ years of experience Siddharth Srivastava Chief Business Officer 20+ years of experience Ripudaman Bandral Chief Credit Officer 25+ years of experience Manas Tandon Promoter Nominee Director 20+ years of experience Partners Group Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Ashutosh Atre President & Chief Risk Officer 30+ years of experience Surendra Sihag Chief Collections Officer 22+ years of experience Jijy Oommen Chief Technology Officer 25+ years of experience Rajaram Balasubramaniam Chief Strategy Officer & Analytics Head 24+ years of experience Anshul Bhargava Chief People Officer 35+ years of experience 5#7Aavas 3.0 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 6#8Aavas 3.0: Building a Lasting Institution Aavas 1.0 H 2012 AUM (INR Bn) FINANCIERS HOME LOAN Au HOUSING FINANCE LIMITED Aavas 2.0 Aavas FINANCIERS LTD SAPNE AAPKE SAATH HAMAARA Aavas 3.0 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Aavas FINANCIERS LTD SAPNE AAPKE SAATH HAMAARA 2016 2023 Investment (2016) by: IPO (October 2018) KEDAARA Partners Group 3SE NSE Industry-leading growth EXPERENCE THE NEW 40.7 59.4 78.0 94.5 113.5 141.7 0.0 1.2 4.1 8.4 16.8 26.9 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 # of 25 35 42 44 94 165 210 250 280 314 346 branches Evolution No. of CXOs Proof of concept of the affordable housing finance model under AU's ownership 1 Perfecting the model and building a foundation to scale under private equity ownership 4 Note: FY28E bar is only for illustrative purposes FY28E Scaling and institutionalization 10+ 7#9Focus Areas Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 1. Priorities – Governance, Asset Quality, Profitability, Growth 2. Pillars - Risk, Financial Capital, Human Capital, Technology دي - 3. Vectors of Growth – Product Diversification and Deeper Geographic Penetration 4. Technology - Enabling Sustainable Growth, Operating Leverage and Superior Customer Experience 5. Value Creation for Stakeholders - Customers, Employees, Lenders, Shareholders 8#10Focus Areas Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 1. Priorities - Governance, Asset Quality, Profitability, Growth 2. Pillars - Risk, Financial Capital, Human Capital, Technology 3. Vectors of Growth - Product Diversification and Deeper Geographic Penetration 4. Technology - Enabling Sustainable Growth, Operating Leverage and Superior Customer Experience 5. Value Creation for Stakeholders - Customers, Employees, Lenders, Shareholders 9#11Focus Areas Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 1. Priorities - Governance, Asset Quality, Profitability, Growth 2. Pillars - Risk, Financial Capital, Human Capital, Technology 3. Vectors of Growth – Product Diversification and Deeper Geographic Penetration 4. Technology - Enabling Sustainable Growth, Operating Leverage and Superior Customer Experience 5. Value Creation for Stakeholders - Customers, Employees, Lenders, Shareholders 10#12Focus Areas Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 1. Priorities - Governance, Asset Quality, Profitability, Growth 2. Pillars - Risk, Financial Capital, Human Capital, Technology 3. Vectors of Growth – Product Diversification and Deeper Geographic Penetration - 4. Technology - Enabling Sustainable Growth, Operating Leverage and Superior Customer Experience 5. Value Creation for Stakeholders - Customers, Employees, Lenders, Shareholders 11#13Focus Areas Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 1. Priorities - Governance, Asset Quality, Profitability, Growth 2. Pillars - Risk, Financial Capital, Human Capital, Technology 3. Vectors of Growth - Product Diversification and Deeper Geographic Penetration 4. Technology - Enabling Sustainable Growth, Operating Leverage and Superior Customer Experience 5. Value Creation for Stakeholders - Customers, Employees, Lenders, Shareholders 12#14Financial Capital Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 13#15Strong Liability Base 12.2% ■Term Loan Assignment 20.8% 45.0% Mar-23 ■NHB Refinancing 22.0% NCDs Diversified Funding Mix Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA ■ Term Loan 10.0% 35.0% Assignment 20.0% Future ■NHB Refinancing ■ NCDs 17.0% 31 Lenders Diversified Mix No exposure to Commercial Papers Incremental Borrowings - Q4 FY23 - INR 15,816 Mn at 8.07% 18.0% Co-lending FY23 - INR 47,631 Mn at 7.25% for 128 months List of Lenders* QSBI केनरा बैंक Canara Bank Public Sector Banks बैंक ऑफ़ बड़ौदा Bank of Baroda Indian Overseas Bank |თის Union Bank of India इंडियन बैंक Indian Bank 4 इलाहाबाद ALLAHABAD सेन्ट्रल बैंक ऑफ़ इंडिया Central Bank of India UCO BANK HDFC BANK Private Sector Banks We understand your world Ckotak ICICI Bank Bandhan Bank Kotak Mahindra Bank NHB, Multi - Lateral, Mutual Funds & Insurance British International Investment SBI Life INSURANCE With Us, You're Sure 75 AXIS BANK IFC FEDERAL BANK YOUR PERFECT BANKING PARTNER SBM राष्ट्रीय आवास बैंक NATIONAL HOUSING BANK ADB ICICI PRUDENTIAL ASSET MANAGEMENT * List of lenders are indicative not exhaustive 14#16Focused from Day 1 on matching Assets to Liabilities Surplus Management* (INR Mn) (As on Mar-23) 18,762 <3months 4,151 24,237 <6months 7,874 33,644 <1year 16,897 <3years <5years <7years <10years * Data as per Ind-AS 69,117 52,487 97,704 79,612 119,490 92,778 14,610 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Loan Assets & Borrowings (INR Mn) (As on Mar-23) 84,566 16,363 89,526 57,101 40% 16,747 Loan Assets 35,683 16,458 Borrowings 37% 16,631 Floating Fixed Equity 18,092 26,712 134,204 34,205 99,999 Assets Liabilities Surplus Cash & Cash Equivalents of INR 13,687 Mn Documented Sanctions + Un-availed CC Limits of INR 19,060 Mn Average Tenor - 128 months 15#17Steady Credit Ratings Upgrades over the Years Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Mar-23 CARE AA / Stable Mar-17 A+ /Stable Mar-23 ICRA AA / Stable Short-term A1+ rating reaffirmed by ICRA, CARE, & India Ratings AA- Mar-16 A / Stable A+ A A- BBB+ AA FY13 FY14 FY16 FY17 FY20 FY23 16#18Consistently Maintained 5%+ Spread over the Last 8 Years Yields, Cost of Borrowings and Spreads (%) Yields (%) COB (%) Spreads (%) Total CAR Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Strong track record of self funding growth INR cr. Period Up to FY16 Up to FY23 Difference 27.5% 46.7% 61.6% 67.8% 55.9% 54.4% 51.9% 46.9% Total Share Capital Cumulative 151 1,410 1,258 15.12% 14.72% 13.99% 13.75% 13.63% 13.16% 13.12% 12.65% Retained Earnings and Profit Cumulative 52 1,860 1,808 10.48% 9.51% AUM 8.63% 8.74% 8.44% 7.40% 7.61% 6.88% Consistent Spreads 5.36% 5.76% 5.77% 5.51% Liabilities 5.22% 5.01% 5.19% 4.64% Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 As of 1,680 14,167 12,487 As of 1,463 9,841 8,377 Internal accruals and liabilities sourced through strong relationships with lenders have adequately funded growth 17#19Business and Growth Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 18#20Affordable Housing is a Secular Growth Story Backed by Long Term Structural Tailwinds The Affordable Housing Loan segment has a large headroom to grow Affordable Housing Loan Market Size (USD Bn) Affordable HFCs expected to gain market share Affordable HFCs Housing AUM (USD Bn) 44 47 53 70 10 FY18 FY20 FY22 FY25E 4 5 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 10 6 FY18 FY20 FY22 FY25E Share of AHFCs in total AHF Market (%) 8% 10% 11% 14% Backed by Long-term structural tailwinds Large headroom - one of the lowest mortgage penetrations globally... ...along with burgeoning middle-class population... ...with Tier-Il cities witnessing increasing share of India's population Mortgage Penetration as a % of GDP UK USA Population (Bn) 1% CAGR 1% CAGR 1.53 1.42 68% 1.33 3% Share of population of cities ranked 26-150 (by population)¹ Population (Mn) 26% 4% CAGR 4% 31% 11% 5% CAGR 52% 47% Share of Singapore Japan Malaysia 44% population 55% 52% 6.0% 8.5% 37% 39% 16% 14% 5% 34% 2016 2021 2031E China 18% 2011 2021E India 11% ■Lower Class (<INR 0.125 Mn p.a.) ■Middle Class (INR 0.5-3 Mn p.a.) Source: Credit Rating reports, Research reports; Note: 1 Ranking of population basis 2011A population Aspirers (INR 0.125-0.5 Mn p.a.) Rich (> INR 3 Mn p.a.) 76 120 19#21Contiguous Geographic Expansion Strategy Calibrated expansion strategy with a network of 346 branches Branch presence AUM (INR Bn) # states FY13 FY16 1 25 17 44 FY18 41 165 FY21 95 280 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA FY23 FY18-23 CAGR 141 4 6 8 11 present in 13 % AUM Contribution of 90%+ 49% 46% 40% 38% largest state Focused on creating a diversified pan-India Affordable Housing Player 346 16% 28% Number of branches 20 20#22Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Deep Penetration Model ensures Large Headroom for Growth in Core States All states with vintage of 5 years+, continue to deliver consistent growth with superior asset quality nn 阊 Rajasthan Maharashtra همسرم Gujarat Madhya Pradesh Delhi Year of entry 2012 2012 2012 2013 陇 2013 Branches at the end 102 48 44 49 4 of FY23 New Branches added in FY23 19% AUM & Disb. growth (FY22-FY23) 5Y AUM CAGR 3 3 27% 50% 16% 26% 2 4 0 28% 36% 39% 26% 30% AUM Growth Disb. Growth AUM Growth Disb. Growth AUM Growth Disb. Growth AUM Growth Disb. Growth AUM Growth Disb. Growth 23% 25% 23% 34% 34% 21#23Diversified Sourcing & Expanding Business Leads Conventional Nirman: 890k ATL: 120k BTL: 400k Non-Conventional Digital: 500k Mitra: 46k Sampark: 2k Saathi: 18k Website: 85k Aavas+: 56k 1 cr. salesforce Digital Sourcing NIRMAN Part Disbursement All 346 branches Live! 100% 100% leads through Nirman 75% + digitally Ticket Size Range Digital Channel 10% of overall disbursement 3 lakhs Alternate Sources साथी SAMPATK MITRA 39%+ leads Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Ability to cater across segments while focusing on Small-Ticket Affordable Housing segment HIG & affluent 9.5% Core+ MIG HIG/MIG (ULB) APF MSME LIG Affordable (ULB) ATS: 10 lakhs EWS Yield Range 22.0% Core focus on serving EWS and LIG segments with capabilities to underwrite the entire pyramid Industry Core focus Expansion potential 22#24Risk, Underwriting & Collections Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 23#25Robust Risk Ecosystem In-house team of 97 HI Credit Risk Legal (incl. 70 lawyers) + 390 empaneled Law Firms Aavas Technical HINANCIERS LTD SAPNE AAPKE, SAATH HANAARA RCU In-house team of 177 (incl. 170 qualified civil engineers) + 170 empaneled valuer firms 99.97% properties Geo-tagged In-house team of 102 handling 50 visits per month to be done by RCU managers Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA ALM Risk Concentration Risk % Interest Rate Risk Legal Risk 龍 Reputation Risk Technical Risk Cybersecurity Risk Fraud Risk Regulatory Risk 24 24#26Continuing Traditional Credit Practices by Leveraging Technology Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 600+ Strong credit team 80% of Senior Credit team is home-grown 150+ Qualified CAS 5Y+ Senior credit team's vintage Customised credit assessment with templates 888 100% of SENP customers are met by the credit manager at the business place Credit DNA Minimum 30 customer visits per month by senior credit team Weekly training in all branches by credit team and on-field training of new joinees Leading by Example Way Forward ☑ To continue with our core "Touch & Feel" Product-ization of questionnaires covering all data points, coupled with on-ground feedback Leveraging technology for validation and accurate decisioning Analytic scores basis empirical evidence 25#27Superior in-house Processes leading to Pristine Asset Quality Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Testimony of Underwriting Performance Behaviour of cases disbursed in last 2 financial year (FY21 - FY23) 0.66% 0.66% 0.16% 0.12% INR cr. 22,000 87k 7,745 571 135 51 9.5 Disbursement of fresh cases # of cases 1+ DPD Amount (INR cr.) 90+ DPD Cumulative Disbursement % of fresh disbursement 84k Behaviour of cases declined by Credit¹ 24k 30+ DPD Life time write-off/Life- time disbursal: 0.11% 25 Cumulative write-offs Average credit costs (FY20-FY23) on Avg. AUM: 0.23% Performance of new geographies (entered in last 5 yrs) 2.07% 5.14% Rejected customers performed 5 times worse 0.97% # of cases rejected # of customers who Rejected Customers Aavas FINANCIERS LTD got mortgage loan SAPNE AAPKE, SAATH HAMAARA from other lenders Note: 1. Rejected cases were analyzed between May-20 to Dec-21 and performance of 12 months captured till Dec-22 0.38% 1+ DPD 90+ DPD 26#28Collections supported by Technology, Data & Analytics Technology & Analytics powering collection capabilities 66. 66 Bounce Prediction Geo-allocation Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA NPA Prediction Modelling 66. 66. Real Time Field Force Tracking Focus on technology with continuous process improvements delivering sustained gains All digital channels opened for collections, leading to >95% collections digitally Steady rise in productivity resulting in a lean, efficient collections team U.U Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA .NPA Steady improvement in asset quality to a 1+ DPD of 3.3% NIL outstanding collection related complaints with Regulator 27 22#29Cultural DNA, People and ESG Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 28#30Aavas DNA Sensitivity Drive for Result DOI Nurturing Talent Integrity Customer centricity Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 29#31Strong Middle Layer across Core Business Functions Business Origination 100 Credit & Risk 137 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Collections 54 Strong middle layer 6 National 15 Zonal 79 Regional 7 National 37 Zonal 93 Regional 6 National 10 Zonal 38 Regional management 43% employees with 3+ years with Aavas Strong professional bandwidth Chartered Accountants 193 70% employees with 3+ years with Aavas 78% employees with 3+ years with Aavas Engineers 208 LLBS 116 Track record of retaining key middle layer employees across all the major business functions MBAS 580 Successfully displayed mobility of key employees for incubating new geographies while maintaining core-Aavas principles Total middle management employees 30#32Initiatives to Upskill Mid-Layer Management that can drive High Impact Projects Leadership programs with B-Schools Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Application oriented impact projects IIMA विद्याविनियोगाद्विकास: IIM-Ahmedabad Leadership Development Program (Business Leadership) INDIAN INSTITUTE OF CALCUTTA IIM-Calcutta Advanced Program in Strategic Management Utkarsh: Positive Paradigm Shift In Customer Experience Chetan: Reducing Bouncing Rate & Impacting X Bucket Saksham: Enhancing Productivity of Underperforming Branches सिद्धिमूलं प्रबन्धनम् भा. प्र. सं. इन्दौर IIM INDORE IIM-Indore Advanced Management 乖 Plug-in: Increasing Business Through Alternate Channels Program for Corporate Leaders !!! Parivartan: Strategy for Front Line Sales Team Activation 31#33Team Aavas - Employee Engagement BEAUTIFUL ENTITI IN THE AAVAS WISHES YOU A HAPY WHEN DAY PRERNA PROJECT PRERNA ICON AWARDS CONGRATULATIONS HONDA CUSTOMER AGS YCLOTHON 19 WELCOME Acres 3.0 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA STRATEGY MEET KHELOUTSAV WOMEN FACILITATION CYCLOTHON BTWIN SPOR 32#34Environmental, Social & Governance S Pillars for Sustainable Future Green Planet Nurturing Workplace Responsible Lending Recent Initiatives ESG Vision & Roadmap: Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Onboarded PWC for: Assessment and defining the ESG Vision & Roadmap Defining ESG Targets & Its Materiality Mapping Alignment with UN SDGS Navigating the ESG reporting system ESG Profile: Onboarded, Churchgate Partners for real time mapping and independent review of ESG initiatives with ESG World Standards i.e UN SDG, SASB, WEF, UNGC Cop, EDCP, IFC, etc. ESG Rating: CRISIL Score 2022 - Empowered Community Secure Customer Robust Governance Company Sector ESG Score Category Remarks Aavas Financiers Lending 66 Strong One of best among all NBFCs/HFCs ESG related reports & an independent review of ESG initiatives available on website: https://www.aavas.in/esq-reporting 33#35Pioneer in Self-Built Green Housing ☐ ☐ Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Edge IFC Global -Gateway In 2021, IFC conducted a survey of 500 Aavas homes to understand the willingness and perceptions towards green homes, leading to affordable green home financing solutions - designed and implemented by Aavas 11,000+ Aavas customers have shown interest and agreed to build a green home in the last one year ~100 EDGE Certified Green Homes, by Sintali, UK-based certifier Acvas eading ontext, Cha eds GreenTree HDFC FL reener Delhi NCR Opportunities re work Bonk Broup. Aavas offers 0.5% benefit in the ROI for certified Green Homes to encourage more and more customers to adopt green homes Aavas SAPNE AAPKE SAATH HAMAAKA Our Partners Aavas has collaborated with IFC & EDGE for ensuring unparalleled efficiency and sustainability in building Green Homes. SHRAE RICS INC - Aavas Green Home Customer Felicitation by IFC Edge IFC International Finance Corporation WORLD SO Creating Markets, Creating Opportunities Market Research Report on Business Case for Affordable Green Housing Finance in India Market Research Report - IFC and Aavas Aavas SAPHE AAFEL EATH HAMEERS IFC Finance Corporation Creating Markets, Creating Opportunities 34#36CSR Activities - Engage-Enable-Enrich आपकी सुर हमारा प्रथम प्रोजेक्ट विश्वकर्ण PROJECT VISHWAKARMA घर शेता BOLMOS Aavas FOUNDATION ar-o 341 ( उन श्री कल्याण इंटरने कृष्ण ए कल्याण शि USHR श्री कल्ब श्री क आपका हा 1a leta se ela GRAM SIDDHI UPRO उषा शा डोसान शिक्षा एवं अभिवर्धत अभियान Loves LES VEÑA MA anggan Bened aft रेलमंद विवरण मार्च 202 KHELODAY Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA AAVAS AAHAAR ROAD SAFETY AWARENESS WOMEN SPORTS ACADEMY 35#37Technology Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 36#38Evolution of Technological Initiatives driving Outcomes 1 Guiding Principles 2 3 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Be a "Bank by Technology" Capabilities Enable Sustainable Growth with Significant Operating Leverage Create a Superior Customer Experience Create 'Robust' and 'scalable' systems that enable a seamless business growth with a robust operational framework and flexibility to add more products. High Impact Initiatives Su Be more 'efficient' by optimizing cost of operations and improving people efficiency through high technology and digital adoption. A8 Launched Customer App 2.0, Website 2.0, Introduced digital Digitized part disbursals, Login fee collection processes Chatbot Launched Nirman, Tech collections App and Partner Apps 2020 2021 S Tune systems, processes and people to provide a 'superior customer experience' in the overall journey for a sustained business growth. Created Technology Roadmap for Aavas 3.0 Commenced Transformation Projects GATI & Unnati SFDC Rollouts Deloitte gati unnati salesforce 2022 2023 37#39Key Transformation Initiatives gati LOS LMS unnatì Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Enterprise GL Adopting a next-gen cloud ERP system ORACLE for back-office process automations to ERP CLOUD enable monitoring and financial controls. salesforce In process of implementing a new digital loan origination platform (LOS) and customer service system Phase 1 rolled out Adopting a new loan ORACLE FLEXCUBE management solution (LMS) to enable scalability. Building a modern, innovative, and future-ready digital ecosystem to provide a 360-degree view from transaction origination to reporting Future Ready Customer Experience Scalable systems Speed and Efficiency Integrated Ecosystem Improved Controls Enabled by Best-in-Class Technology Partnerships Deloitte. sas ப்ப் amazon Perfios karza SIGNZY SignDeskⓇ web services CAMSfinserv zipNACH FinBit.io MuleSoft REALTIME ANALYSIS & DECISIONING SOLUTION TECHNOLOGIES 38#40User Friendly Applications backed by Innovations LOGIN glish Change Aavas Apply EMI for Loan Products Calculator Branch Locator Application Connect with De Customer App Aavas CONTA LE CALLER PROGRESS NEVAN IN PROGRESS COMPLETED pofect source type Acros Aavas 25 10 Keshav Gandadhar выписать 12:59 PM NIRMAN SAFME APEL SAATH HAMAALA 9 25 In 19 Madan M Malviya Sumuran kalra Pantial Income 100 3.99 PM NIRMAN 90 25 19 Vinayak Savarkar 257 PM NIRMAN GA INHAW The town in applying for AJAY KUMAR 16 Nov 18 Amit Shah + CAPTURED 16 PM NIRMAN = W 20 P Aavas Tech Valuation CAPTURE LOCATION LOCATION CAPTURED BY GOOGLE 26.8303439 Arney 75.7753574 13 mars LOCATION CAPTURED BY SER 26 8301602 75.7757269 13 meters SAVE & CONTINUE Nirman Productivity App Aavas Mitra: Partner App Technical Valuation App 4.4 4.5 4.3 4.2 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 3:15 12 Branch Name Loan Application LA-000033857 Type of Loan Product cheme Requested Loan Amount (in INR) JAIPUR MANSARDWAR GUODI BAIKALAL Additional Funding Draft Application Pro Stage: Draft Salesforce App salesforce 80% Customer services moved to digital 10% Disbursals from leads sourced digitally 75% Part disbursals moved to digital 70% Leads responded within 15 min by Omni channel powered contact center 62% Customers using app 99% requests self serviced 100% 95% Collections taking place digitally Technical, Legal and Risk Assessment Processes digitized including vendors 90% Login fee Collections moved to digital 100% Property locations geo-tagged 39#41Analytics Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA 40 40#42Data and Analytics across Customer Lifecycle Sourcing Underwriting Risk Collections Acyas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Retention Market Analytics Productivity Analytics Balance Transfer Risk Datamarts Bounce Analytics Analysis Descriptive Analytics Pricing Analytics ilanced Scorecard Risk Analytics Balanced Scorecard Campaign Analytics and Optimization Prescriptive Analytics ML based NLP for PD voice recording analysis Policy Automation Next Best Action and Timing Risk Assessment Affinity/Loyalty Analysis Best time to reach Lead Scoring Outcome Forecasting using ML techniques Predictive Analytics Pre-Qualified & Pre- approved Application Score Bounce Prediction Loss Forecasting Geolocation based effort optimization Churn Prediction 41#43Predictive Use Cases Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA APPLICATION SCORE LOGISTIC REGRESSION BASED PREDICTIVE MODEL A model that predicts future performance of applications being processed. Custom model built for Aavas, tested on past data, off-us and on-us, rank orders leading & lagging indicators Increase approval and Optimize TAT without increasing risk Risk separation: 10x between least and highest risk deciles Improvement in segment approval rates Acquisition - Entry Barrier, Risk Based Pricing Underwriting - Prioritization, Reject Review CHURN PREDICTION Identify customers who will request BT, months ahead of time Proactive retention tool, allow business early warning indicators to improve retention for good customers From XGB MACHINE LEARNING MODEL Reactive Retention Process To Proactive Retention Process Acquisition Servicing Closure Request Retention 42 22#44Feb-22 May-22 Optimization Use Cases Manual Allocation GEO LOCATION BASED OPTIMIZATION C. 0 0 0 1 1000 0001 13480 Clustering Optimization COLLECTIONS BOUNCE PREDICTION Bounce Model Prediction vs. Actual Bounce Very High Aug-22 | Nov-22 High Medium Feb-23 Optimized Allocation Geo Location based effort Optimization Risk Segment Early Bucket Mid Bucket 1 1X 1X 2 1X 4X 3 3X 8X Can be used for Collections, Sales, Credit Reduction in efforts Consistently high prediction - Proactive, differentiated strategy and actions - Current Month and 90-day prediction window 43 33 Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA#45Contact Us Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA Aavas Financiers Limited CIN: L65922RJ2011PLC034297 Mr. Ghanshyam Gupta [email protected] www.aavas.in Thank You! 44