#1ɅPTUS Aptus Value Housing Finance India Limited Investor Presentation | Q1 FY23 田田 n#2Safe Harbor This presentation and the accompanying slides (the "Presentation") which have been prepared by Aptus Value Housing Finance India Limited (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, the 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 action regulations, interest and other fiscal costs generally prevailing in the economy. The Company doe not undertake to make any announcement in case any of these forward looking statement become materially incorrect in future or update nay forward looking statements made from time to time by or on behalf of the Company. 2 Q1 FY 23 Investor Presentation APTUS#33 Background Commenced Operations in 2010 from Chennai, Tamilnadu Regulated by RBI and supervised by NHB Run by professional management team backed by strong Founder Promoter and marquee investors Presence in 211 locations Q1 FY 23 Investor Presentation APTUS#4Key Strengths APTUS 1 Leader in Attractive South Market 2 Good Asset Quality 3 Industry Leading Profitability 4 Presence in Large Underpenetrated Market 5 Good Governance, Management and Alignment Q1 FY 23 Investor Presentation M APTUS#5Snapshot - June 2022 Assets under Management (AUM) +30% +14 bps Rs. 5519 Cr Spread 9.17% +7% +113% +2 bps Return on Assets -34 bps Disbursement Rs. 525 Cr Opex to Assets 2.44% +1% +70 bps -9 bps YoY QoQ 8.88 % Consistently maintained 5 (*)-As perRBI circular dated 12 Nov 2021 Q1 FY 23 Investor Presentation Return on Equity 15.89 % Consistently maintained +62 % Gross Stage 3 (*) 1.75 % Profit After Tax Rs. 119 Cr +56 bps +8 % APTUS#6Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio - Home Loans (HL) / Small Business Loans (SBL) to 6 Insurance loans 4% Quasi Home Loans 23% HFC NBFC Top up loans 4% Small business loans (SBL) 100% LIG Customers Home Loans 69% O 76% Self Employed Borrowers 71% = AUM Rs. 4819 Cr AUM Rs. 700 Cr Consolidated Rural Focus Small business loans 20% Top up loans 4% Insurance loans 3% Quasi Home Loans 15% AUM - Rs. 5519 Cr 69% Home Loans 58% Average Ticket Size < Rs.10 lks >93% Q1 FY 23 Investor Presentation APTUS#7100% In-House Operations Fully In-House Team... 1,422+ Business origination 244+ Central Credit 69 QQQ OOG 213+ Legal & technical 395+ Collection ...Leading to Desired Business Outcomes Pricing Power Reduced TAT H Low Takeover 2 $ Q1 FY 23 Investor Presentation $ Reduced Risk of Frauds APTUS#8B Robust Underwriting, Monitoring and Collections Process 100% In-House Sourcing Leveraging Technology Stringent Credit Underwriting Robust Collection Management System Lead Generation through Ref app, Cust app Social media 211 Branches Digital Onboarding and KYC Cash flow assessment Pre & Post Disbursement 15-24 months Monitoring early default signs 0% Sourcing from DSA/Builders Credit verification app, property app and legal app - Optimal leverage of technology leading to efficient processing Q1 FY 23 Investor Presentation Centralized Underwriting 90 DPD Legal action / SARFAESI APTUS#99 Information & Technology: Key Enabler of Growth Lending Software End-to-end software solution Customer Relationship & Service Automated CRM and customer service requests Human Resources Human resources management system application 1 2 3 5 6 4 Customer Onboarding Sales app, referral app, credit verfn. app and property app E-KYC, E-Nach Collections App, Payments automation via Bharat Bill Pay, Google Pay, Paytm etc Business Intelligence & Analytics "Power" analytics platform Q1 FY 23 Investor Presentation APTUS#10Scalable and Robust digital landscape ✓Mobile App for customer on-boarding, Credit Verification, Technical Valuation, Collections & Customer Service Easy, Quick & Transparent process right from the field Robotic Process Automation (RPA) to eliminate manual process Electronic Payments Lead generation through Campaigns. ✔Tie-up with marketing partners to get the leads [Tuskmelon, Alchem] Brand awareness Product and service awareness Location awareness 10 obility Dad MACHINE 1 Data Analytics Time Series Forecast Using Statistical Model and Tensor Flow for Bounce Prediction. Machine Learning Models for Analysis and Predictions. •Customer Profile Analysis •Loan Foreclosure Prediction •Probability of Default model "Power BI❞ for Live Dashboards "End-To-End Digital Process " igital Marketing סן Tech-Infra Of Q1 FY 23 Investor Presentation Razorpay BBPS DAAR BILL FATHIME SCH End-to-End ERP solution Backups on Cloud ✔Payment automation via Bharat Bill Pay Services and Razorpay API integration in Collection app APTUS#11Risk & Data science backed Centralized underwriting 11 Risk Management Tech Intervention Centralized Processing 25+ data points are collected for Customer Profile Analysis • Stage-wise disbursement through technical visits Multiple touch points to ensure thorough verification in underwriting process More than 100 data points captured for evaluation of every customers • Integration of credit score card with lending application for easier credit evaluation • Analyzing profiles behaviour for continuous improvement of parameters through machine learning for Better & Faster credit decisioning • Consistency in underwriting with expertise in state-wise analysis along with linguistic skills Effective training ,knowledge sharing and monitoring process • Quick adoption to process change Loans approved within 72 hrs > 90 % Q1 FY 23 Investor Presentation APTUS#12Digital Adoption Service requests raised on app 1026 644 2188 2025 Q2 FY 2021 2022 Q3 FY 2021 2022 Q4 FY 2021- Q1 FY 2022- 2022 2023 112 No of Payments Via Collection App 315 6092 7325 7005 Q1 FY 2021- Q2 FY 2021- Q3 FY 2021- Q4 FY 2021- Q1 FY 2022- 2022 2022 2022 2022 2023 12 Digital Dashboard Dashboard Digital Q1 FY 23 Investor Presentation Unique Users Making payments Via Apps 30014 27533 20343 2929 111 Q1 FY Q2 FY Q3 FY Q4 FY Q1 FY 2021-2022 2021-2022 2021-2022 2021-2022 2022-2023 2431 Q2 FY 2021- 2022 App logins 9170 8578 7617 Q3 FY 2021- 2022 Q4 FY 2021- 2022 Q1 FY 2022- 2023 ་ APTUS#13Scalability Tamil Nadu Andhra Pradesh Telangana Karnataka Per Capita GDP 1.8x Compared to national 1.1x 1.5x 1.5x average of INR 157K GDP Growth 13% 9% 8% 7% India average: 4% 13 Branch Productivity as on June 30, 2022 AUM per Branch (Rs. Cr) # of Branches 18 44 149 32.5 % of AUM as on State No of branches 14.1 Q1 FY 23 FY 22 FY 21 FY 20 TamilNadu 83 47% 48% 52% 56% AndhraPradesh 74 32% 31% 28% 25% 3.0 Telangana 32 13% 12% 10% 10% Karnataka 21 9% 9% 10% 10% Odisha Total 1 0% 0% <1 Year Old 1-3 Year Old >3 Year Old 211 100% 100% 100% 100% Q1 FY 23 Investor Presentation APTUS#1414 0 Scalable Operating Model CAGR 30% (5 Years) Incorporation Became Profitable 29 29 First PEEquity AUM Rs.100 Cr Westbridge Expansion 4 States 846 519 358 252 159 86 2010 2011 2012 2013 2014 2015 (*) - WestBridge, Malabar Sequoia, Steadview AUM Rs. Crores Q1 FY 23 Investor Presentation 100th Branch 1414 Customers over 50000 Equity from Marquee Investors (*) 2247 3183 4067 2016 2017 2018 2019 2020 2021 2022 Q1 FY 23 Company Listed 5183 APTUS 5519#15Resilient Model Across Economic Cycles GST Implementation NBFC Liquidity Crisis FY 18 FY 20 Covid-19 (first wave) FY 21 Covid-19 (Second Geo Political wave) FY 22 Climate Q1 FY 23 (*) AUM growth 66% 41% 28% 27% 24% Yield 17% 18% 17% 17% 17% GNPA 0.5% 0.7% 0.7% 1.19% (#) 1.75%(#) ROA 6.0% 7.8% 7.4% 8.00% 8.88% # - As per RBI circular dated 12 Nov 2021 15 * - Annualised Q1 FY 23 Investor Presentation APTUS#1616 Strong ESG Focus Focus on financial inclusion Improving Living Standards Strong Corporate Governance 76% LIG 71% Self-employed 40% New to Credit Employment in rural / semi-urban areas Support to borrowers NIL Material Civil litigation Diversified Experience of Board Members across academic and professional domains Q1 FY 23 Investor Presentation APTUS#17Performance Highlights (Quarterly) AUM (Rs. Cr) 5519 Disbursement(Rs. Cr) 17 4805 5183 454 519 Spread(%) 525 9.15% 9.17% 8.89% ☐ Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Q1 FY 23 Gross NPA(%) 1.53% (*) 1.19% (*) 1.75% (*) Q3 FY 22 Q4 FY 22 Q1 FY 23 (*) NPA as per RBI circular dated 12 Nov 2021 101 PAT (Rs. Cr) ROA (%) 119 8.00% 7.82% 110 8.88% Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q1 FY 23 Investor Presentation APTUS™#18Performance Highlights (Year on Year) AUM (Rs. Cr) 5519 Disbursement (Rs. Cr) 525 4254 30% 247 113% Spread (%) 9.17% 9.03% Q1 FY 22 Q1 FY 23 Jun 2021 Jun 2022 Q1 FY 22 Q1 FY 23 1.05% Gross NPA (%) 1.75% (*) PAT (Rs. Cr) 119 7.30% 74 30% ROA (%) 8.88% Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 (*) NPA as per RBI circular dated 12 Nov 2021 18 Q1 FY 23 Investor Presentation APTUS™#19Consistent NIMS 19 Yields/Cost of Borrowings (%) 17.30% 17.20% 17.03% 16.89% 16.85% 16.99% 16.95% 16.89% 16.89% 16.85% 9.80% 9.80% 8.43% 7.74% 7.68% 7.96% 8.00% 7.74% 7.86% 7.68% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 JUN 21 SEP 21 DEC 21 MAR 22 JUN 22 Spread (%) 9.15% 9.17% 8.60% 7.50% 7.40% 9.15% 9.17% 9.09% 9.03% 8.89% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Q1 FY 23 Investor Presentation APTUS™#20Opex and ROA 3.80% 3.40% 2.78% 2.53% 2.44% Opex (%) 2.78% 2.74% 2.61% 2.53% 2.44% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 June 2022 ROA (%) 8.88% 8.00% 7.37% 8.88% 8.00% 7.62% 7.30% 7.43% 7.01% 6.10% FY 19 FY 20 FY 21 FY 22 01 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 20 Q1 FY 23 Investor Presentation APTUS™#21Asset Quality PCR = 53% Gross NPA (%) 21 221 1.07% 0.81% Jun 2021 Sep 2021 1.53%(*) Dec 2021 1.19% 1.75%(*) 0.84% 0.60% Net NPA (%) 1.16% 0.87% 1.32% Mar 2022 Jun 2022 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 (*) NPA as per RBI circular dated 12 Nov 2021 Collection efficiency (%) Covid 2 impact 94.98% 99.66% 98.28% 103.14% 30+ DPD (%) 12.98% 12.48% 101.17% 10.95% 9.91% 6.48% Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Jun 2021 Sep 2021 Dec 2021 Mar 2022 June 2022 Q1 FY 23 Investor Presentation APTUS™#22Provision for Contingencies (ECL) 22 Particulars Aptus Consolidated 31-Mar-22 30-Sep-21 Rs. Lakhs 30-Jun-22 31-Mar-21 Gross Stage 3 9654.17 % portfolio in Stage 3 1.75% ECL Provision Stage 3 2,413.54 6,183.67 1.19% 1,545.92 3,623.42 0.81% 2,717.11 0.67% 911.65 1,178.23 Net Stage 3 7,240.63 4,637.74 2,711.77 1,538.88 Provision coverage ratio (PCR) 25.00% 25.00% 25.16% 43.36% Gross Stage 2 26,049.50 45,155.90 52,325.22 35,289.12 % portfolio in stage 2 4.72% ECL Provision Stage 2 902.49 Net Stage 2 25,147.01 Provision coverage ratio (PCR) 3.46% 8.72% 1,020.68 44,135.22 2.26% 11.67% 1,156.40 51,168.82 8.68% 176.45 35,112.67 2.21% 0.50% Gross Stage 1 5,16,195.10 % portfolio in stage 1 93.53% ECL Provision Stage 1 Net Stage 1 Provision coverage ratio (PCR) Total AUM (*) ECL Provision Provision coverage ratio (PCR) Q1 FY 23 Investor Presentation 1,755.06 5,14,440.04 4,66,620.41 90.09% 1,602.02 0.34% 4,65,018.39 0.34% 3,92,260.59 87.52% 1,144.60 3,91,115.99 0.29% 3,68,769.06 90.66% 328.06 3,68,441.00 0.09% 5,51,898.77 5,17,959.98 5,071.10 0.92% 4,168.62 0.80% 4,48,209.23 3,212.65 0.72% 4,06,775.29 1,682.74 0.41% APTUS™#2323 Robust Funding Management and Credit Profile NCDs, 14% NHB, 28% Diversified and Balanced Funding Mix Others, 6% Avg. tenureof borrowings(months) " Others represents Securitisation Banks, 52% Q1 FY 23 FY22 FY21 85.5 84.7 83.3 • Credit Rating (ICRA)- Upgraded to AA-from A+ • Credit Rating (CARE) - Upgraded to AA-from A+ No Exposure to Short term loan incl CPs NHB Q1 FY 23 Investor Presentation Public Sector Private Sector 20+ Lender Relationships International Finance Corporation HDFC Bank Axis Bank Federal Bank ICICI Bank SBI Indian Bank Bank of Baroda Bank of India APTUS#24tor Presentation ALM Surplus 24 Position as on 30 June 2022 (Rs.Cr) <3 months 412 984 3-6 months 270 443 588 609 6m to 1 year 1 to 3 years 3 to 5 years 440 5 to 7 years 526 7 to 10 years 322 >10 years 613 980 Surplus 572 173 21 1441 2396 955 Outflows Inflows 1927 1792 2364 1384 Q1 FY 23 Investor Presentation 1487 1266 291 APTUS#25tor Presentation Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (Cr) As on Jun-22 25 5519 5519 Borrowings - Fixed Vs. Floating 1076 1269 (23%) (21%) 60% 61% 62% 55% 1756 (34%) 4250 (77%) 2687 (52%) Loan Assets Borrowings/Equity Equity Fixed Floating gap between Loan Assets & Borrowings filled by a portion of Equity Q1 FY 23 Investor Presentation 45% 40% 39% 38% Sep-21 Dec-21 -Fixed % Mar-22 Floating % Jun-22 APTUS#26tor Presentation Comfortable liquidity position/Capital Adequacy A. Liquidity 26 Rs. Crores Particulars As on 30 June 2022 Q2 FY 23 Q3 FY 23 Cash and Cash Equivalents 573 Opening Liquidity Add:Undrawn Sanctions Add: Principal repayments and surplus from operations Less: Debt repayments Closing Liquidity 573 1230 575 258 262 176 185 1,230 1,308 Rs. 1300 crores available for business upto Dec 2022 B. Capital Adequacy Capital Adequacy as on 30 June 2022 -83.26% Q1 FY 23 Investor Presentation APTUS#2727 Key Growth Strategies Γ Γ 16: ך Continued Focus on Existing Segment Ticket Size in INR 0.5-1.5mn range Large headroom in new to credit, retail segment Maintain different templates of customer profiles to increase business while managing risks Deeper Penetration inExisting Markets . Contiguous expansion and increasing penetration 0 Branch expansion in new markets - Odisha, Maharashtra, and Chhattisgarh Reduce Cost of Borrowings Diversification of borrowing profile Continue to improve credit ratings Q1 FY 23 Investor Presentation APTUS#28Experienced and Well Diversified Board CMD WestBridge Non-Executive Nominee Directors 28 M. Anandan Chairman & Managing Director Sumir Chadha Nominee Director - WestBridge Non-Executive Independent Directors KP Balaraj Nominee Director - WestBridge S. Krishnamurthy Former MD and CEO, SBI Life Insurance Non-Executive Independent Director K. M. Mohandass Partner, KM Mohandass & Co. Krishnamurthy Vijayan Former MD, JPM Asset Mamt Non-Executive Directors Mona Kachhwaha Director - Impact Investors Council Shailesh J. Mehta VG Kannan Former MD, SBI Partner, Granite Hill Capital Partners Q1 FY 23 Investor Presentation Suman Bolina Executive Managing Partner, Sri Santhi Corp. APTUS#29Stable Management Since Inception 29 Balaji P ED & CFO Several years of experience in finance, treasury, banking, fund raising M.Anandan Chairman & Managing Director 4 decades of experience in Financial Services Subramaniam G ED - Chief of Business and Risk Several years of experience in lending (financial products), risk management. operations and collections C.T. Manoharan Executive Vice President - Business Development Rich experience in housing finance industry across sales, channel and distribution management Sarath Chandran D Executive Vice President - Collections and Technical Niche experience in collections and technical in housing finance industry V.Krishnaswami Vice President - Information Technology Experience in strategizing and implementing digital technology solutions, IT designs and, Infrastructure. Ramesh K Sr. Associate Vice President - Credit Rich experience in areas of Credit & Risk Management, Fraud Control and operations in retail finance. N.Srikanth Vice President - Human Resource Seasoned Professional with experience in HR planning, recruitment, training, induction, employee relations and engagement Q1 FY 23 Investor Presentation Sundara Kumar V Sr. Associate Vice President - Legal & Recovery Legal experience in title deed scrutiny, SARFAESI and arbitration proceduresin housing finance / mortgages. APTUS#30tor Presentation DiversifiedShareholding Shareholding Pattern as on 30 Jun 2022 DII 2.83% Others 5.71% 30 FII 29.12% Investor Promoter- WestBridge 37.27% Founder Promoter M.Anandan 25.07% Q1 FY 23 Investor Presentation Top Institutional Shareholders as on 30 Jun 2022 Investor Details % of holding Key Investors Malabar Group 8.48 Steadview Capital 3.24 Sequoia 3.21 Ward Ferry 2.88 Madison 2.79 Capital Research 2.24 Genesis 1.64 Aberdeen 1.36 Neuberger Berman 1.21 DSP Mutual Fund 0.90 APTUS™#31Annexures 31 Q1 FY 23 Investor Presentation APTUS#32Consolidated Statement of Profit and Loss(*) Rs. Crores Growth Particulars Q1 FY 23 Q4 FY 22 Q1 FY 22 FY 22 Q1 FY 23 over Q1 FY 23 over Q4 FY 22 Q1 FY 22 Interest income on loans 233.00 217.26 178.81 791.67 7% 30% Processing fees and other income 15.76 17.09 7.29 48.55 Interest expense 54.26 49.22 55.50 208.59 NIM 194.50 185.13 130.60 631.63 5% 49% Operating expenses 32.67 30.33 28.28 117.14 8% 16% Provisions - ECL/Write offs 9.52 10.47 7.17 34.47 Profit before tax 152.31 144.32 95.15 480.02 6% 60% Provision for Taxation 33.46 34.46 21.61 109.88 Profit After Tax 118.85 109.87 73.54 370.14 8% 62% (*) Based on Ind AS 32 Q1 FY 23 Investor Presentation APTUS™#33Consolidated Statement of Assets and Liabilities(*) Rs. Crores Particulars Sources of Funds Share capital Reserves & Surplus 30-Jun-22 31-Mar-22 99.38 99.38 2,935.63 2,816.78 Total Networth Borrowings 3,035.01 2938.96 2,916.16 2,720.63 Other liabilities and provisions 52.29 47.25 Total 6,026.26 5,684.04 Application of Funds Loan Assets 5402.72 5,078.75 Fixed Assets Liquid Assets - Bank FDs, MFs Other Assets 4.85 572.92 Total 45.77 6,026.26 4.01 547.59 53.69 5,684.04 (*) - Based on Ind AS 33 Q1 FY 23 Investor Presentation APTUS#34RoA Tree 34 Particulars Q1 FY 23 FY 22 Revenue from operations/Avg Loan book 17.71% 17.51% Other Income/Avg loan book 0.63% 0.67% Total Revenue/Avg loan book Finance cost/Avg loan book NIM/Avg loan book Operating expenses/Avg loan book ECL Provision/Avg loan book PBT/Avg loan book PAT/Avg loan book PAT/Networth 18.34% 18.17% 4.06% 4.51% 14.28% 13.66% 2.44% 2.53% 0.71% 0.75% 11.13% 10.38% 8.88% 8.00% 15.89% 14.45% Q1 FY 23 Investor Presentation APTUS#35Thank You 35 Q1 FY 23 Investor Presentation APTUS