#1ANALY ɅPTUS 1 Aptus Value Housing Finance India Limited Investor Presentation | Q4 FY23 田田#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 Q4 FY 23 Investor Presentation APTUS™#33 Background Commenced Operations in 2010 from Chennai, Tamil Nadu Regulated by RBI and supervised by NHB Run by professional management team backed by strong Founder Promoter and marquee investors O Q4 FY 23 Investor Presentation Presence in 231 locations APTUS™#4Key Strengths 4 1 Presence in Large Underpenetrated Market Leader in Attractive South Market 2 APTUS 3 Good Asset Quality 5 4 Industry Leading Profitability Good Governance, Management and Alignment Q4 FY 23 Investor Presentation ☑ M APTUS™#55 Management Update ɅPTUS Resilient Profitability with RoA at 8.44% and RoE at 16.34% Expanding beyond South:- Pilot commenced in Odisha; Interim Dividend of 4 per share (Face value - Rs.2 per share) declared Awarded 'India's Leading Housing Finance NBFC (Mid) by Dun & Bradstreet at BFSI & FinTech Awards 2023 Q4 FY 23 Investor Presentation APTUS™#6Snapshot - March 2023 Assets under Management (AUM) Disbursement YOY +30% Rs. 6738 Cr Spread 14.31 % Consistently maintained +7% +46% Return on Assets 8.44% QoQ Consistently maintained (*) As perRBI circular dated 12 Nov 2021 6 +22 bps Rs. 2394 Cr Opex to Assets 2.75 % -4 bps +10% maintained Q4 FY 23 Investor Presentation Return on Equity 16.34 % Improved from 14.45% +36 % Gross Stage 3 (*) 1.15 % Profit After Tax Rs. 503 Cr -29 bps +8% APTUS™#7Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio - Home Loans (HL) / Small Business Loans (SBL) 7 HFC Insurance loans 5% NBFC Top up loans 4% Small business loans /Non HL-100% LIG Customers 78% Quasi Home Loans 26% Home Loans (65%) O Self Employed Borrowers 71% AUM Rs.5761 Cr Consolidated Small business loans 21% Top up loans 3% Insurance loans 3% Quasi Home Loans 15% AUM Rs.6738 Cr AUM Rs.977 Cr Rural Focus 74% Home Loans 58% Avg Ticket Size < Rs.10 lacs >93% Q4 FY 23 Investor Presentation APTUS™#88 100% In-House Operations Fully In-House Team... % 凸 ...Leading to Desired Business Outcomes 1,346 Business Origination 257 Credit Pricing Power QQ Reduced TAT lill 220 Legal & technical 437 Collection Low Takeover ▪ར་ $ 145 HO/Operations Q4 FY 23 Investor Presentation $ Reduced Operational Risk APTUS™#99 Robust Underwriting, Monitoring and Collections Process . 100% In-House Sourcing Leveraging Technology Stringent Credit Underwriting Robust Collection Management System • Lead Generation through Cust app, Ref app • Social media Digital Onboarding and KYC Cash flow assessment Pre & Post Disbursement 15-24 months Monitoring early default signs 231 Branches 0% Sourcing from DSA/Builders Credit verification app, property app and legal app- Optimal leverage of technology leading to efficient processing Q4 FY 23 Investor Presentation Centralized Underwriting 90 DPD Legal action / SARFAESI APTUS™#10Information & 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 10 1 2 3 4 5 6 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 Q4 FY 23 Investor Presentation APTUS™#1111 Scalable 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 Legality - eStamp & eSign - In Progress 21 Mobility ixi MACHINE LEARNING MICROSOFT POWER BI Data ↑ Analyti Lead generation through Campaigns. ✔Tie-up with marketing partners to get the leads [Tuskmelon, Alchem] Brand awareness Location awareness Product and service awareness "End-To-End Digital Process " igital Marketing Of Tech Infra Q3 FY 23 Investor Presentation ✓ 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 Razorpay BBPS▶ BHARAT BILL PAYMENT SYSTEM ✓ End-to-End ERP solution Backups on Cloud ✔Payment automation via Bharat Bill Pay Services and Razorpay API integration in Collection app APTUS™#1212 Risk and Data Science Backed Centralized Underwriting A Risk Management • 50+ key data points are collected for Customer Profile Analysis Stage-wise disbursement through technical visits Multiple touch points to ensure thorough verification in underwriting process Tech - Intervention • Tech enabled evaluation of 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 Centralized Processing • 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 % Q4 FY 23 Investor Presentation 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 % of AUM as on No of State branches FY 23 FY 22 FY 21 FY 20 TamilNadu 86 43% 48% 52% 56% AndhraPradesh 86 35% 31% 28% 24% Telangana 36 14% 12% 10% 10% Karnataka 21 8% 9% 10% 10% Odisha Total 2 0% 0% - 231 100% 100% 100% 100% Branch Productivity as on March 31, 2023 AUM per Branch (Rs. Cr) # of Branches Q4 FY 23 Investor Presentation 27 34 170 1.64 17.52 35.87 <1 Year Old 1-3 Year Old >3 Year Old APTUS™#1414 Scalable Operating Model CAGR -30% (5 Years) Equity from Marquee Investors Customers over 50000 4067 Company Listed 5183 ○ Incorporation № Became Profitable First PEEquity AUM Rs.100 Cr Westbridge Expansion 4 States 100th Branch 3183 2247 1414 846 519 358 29 86 159 252 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (#) - Represents on book portfolio - no Direct Assignment transactions done AUM Rs. Crores Q3 FY 23 Investor Presentation APTUS™ 6738(#)#15Resilient Model Across Economic Cycles 15 GST Implementation NBFC Liquidity Crisis Covid-19 St (1st Wave) FY 18 FY 20 Covid-19 (2nd wave) Geo Political Issues FY 21 FY 22 FY 23 AUM growth 66% 41% 28% 27% 30% Yield 17% 18% 17% 17% 17% GNPA 0.5% 0.7% 0.7% 1.19% (#) 1.15% (#) ROA 6.0% 7.8% 7.4% 8.00% 8.44% # - As per RBI circular dated 12 Nov 2021 Q4 FY 23 Investor Presentation APTUS™#16Strong ESG Focus 16 Focus on financial inclusion Improving Living Standards Strong Corporate Governance 78% LIG 71% Self-employed 38% New to Credit Employment in rural / semi-urban areas Support to borrowers in tier 2/3/4 locations leading to financial inclusion NIL Material Civil litigation Diversified Experience of Board Members across academic and professional domains Q4 FY 23 Investor Presentation APTUS™#17Performance Highlights (Quarterly) Disbursement (Rs. Cr) 17 604 605 668 5932 AUM (Rs. Cr) 6738 1.47% 6307 Gross NPA (%) 1.44% 1.15% Q2 FY 23 Q3 FY 23 Q4 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 123 Q2 FY 23 ROA (%) PAT (Rs. Cr) 8.71% 8.53% 8.44% 135 126 ROE (%) 16.34% 16.02% 15.83% ☐ I Q2 FY 23 Q3 FY 23 Q4 FY 23 Q3 FY 23 Q4 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q4 FY 23 Investor Presentation APTUS™#18Performance Highlights (Year on Year) Disbursement (Rs. Cr) AUM (Rs. Cr) 18 2394 30% 46% 5183 1640 FY 22 PAT (Rs. Cr) FY 23 Mar 2022 503 36% 370 8.00% FY 22 FY 22 FY 23 Gross NPA (%) 1.19% 6738 Mar 2023 Mar 2022 ROA (%) 8.44% 14.45% 1.15% Mar 2023 ROE (%) 16.34% FY 23 FY 22 FY23 Q4 FY 23 Investor Presentation APTUS™#19Consistent Spreads 19 Yields/Cost of Borrowings (%) 17.30% 17.20% 17.03% 17.00% 16.89% 16.89% 17.00% 16.89% 16.85% 16.90% 9.80% 9.80% 8.43% 7.74% 8.10% 8.00% 7.90% 8.10% 7.74% 7.70% FY 19 FY 20 FY 21 FY 22 FY 23 DEC 21 MAR 22 SEP 22 DEC 22 MAR 23 NIM (%) 9.15% 9.15% 9.15% 8.90% 8.89% 9.00% 8.90% 7.40% 8.60% FY 20 FY 21 FY 22 FY 23 Dec 2021 Mar 2022 Sep 2022 Dec 2022 Mar 2023 Q4 FY 23 Investor Presentation APTUS™#20Opex and ROA 3.80% 3.40% 2.78% 2.75% 2.53% Opex (%) 2.61% 2.53% 2.77% 2.75% 2.75% FY 19 FY 20 FY 21 FY 22 FY 23 Dec 2021 Mar 2022 Sep 2022 Dec 2022 Mar 2023 ROA (%) 8.44% 8.00% 7.37% 7.01% 6.10% 8.71% 8.53% 8.44% 8.00% Mar 2022 FY 19 FY 20 FY 21 FY 22 FY 23 Sep 2022 Dec 2022 Mar 2023 20 Q4 FY 23 Investor Presentation APTUS™#21Asset Quality Gross NPA (%) 21 PCR-91% 1.75% 1.17% 1.47% 1.44% 0.87% 1.15% 1.32% Net NPA (%) 1.10% 1.08% 0.86% Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Non Cash collections >95% Collection efficiency (%) 103.14% 101.17% 100.21% 100.31% 102.90% 9.91% Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 30+ DPD (%) 6.48% 6.50% 6.27% 5.90% Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 APTUS™ Q4 FY 23 Investor Presentation#22Provision for Contingencies (ECL) Rs in lakhs Particulars 31-Mar-23 Consolidated 30-Sep-22 31-Mar-22 Gross Stage 3 7,767 8,692 6,184 % portfolio in Stage 3 ECL Provision Stage 3 Net Stage 3 Provision coverage ratio (PCR) Gross Stage 2 % portfolio in stage 2 1.15% 1.47% 1.19% 1,942 2,173 1,546 5,825 6,519 4,638 25.00% 25.00% 25.00% 31,998 29,819 45,156 4.75% 5.03% 8.72% ECL Provision Stage 2 2,551 1,915 1,021 Net Stage 2 29,446 27,904 44,135 Provision coverage ratio (PCR) 7.97% 6.42% 2.26% Gross Stage 1 6,34,066 % portfolio in stage 1 ECL Provision Stage 1 Net Stage 1 Provision coverage ratio (PCR) Total AUM ECL Provision Provision coverage ratio (PCR) 94.10% 2,625 6,31,441 0.41% 6,73,831 5,54,716 93.51% 1,886 5,52,830 0.34% 5,93,227 4,66,620 90.09% 1,602 4,65,018 0.34% 7,119 1.06% 5,974 1.01% 5,17,960 4,169 0.80% 22 22 Q4 FY 23 Investor Presentation APTUS™#23Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix 20+ Lender Relationships 23 23 • NCDs, 10% NHB, 26% Sources of funds mix(%) Others, 4% Banks, 60% Avg. Tenure of FY 23 FY22 FY21 Borrowings 86.9 84.7 83.3 (months) Others represents Securitisation Credit Rating (ICRA)- Upgraded to AA-from A+ • Credit Rating (CARE) - Upgraded to AA-from A+ No Exposure to Short term loan incl CPS Q4 FY 23 Investor Presentation Public Sector Private Sector Refinance DFI International Finance Corporation National Housing Bank HDFC Bank Axis Bank Federal Bank Kotak Bank SBI Bank of Baroda Indian Bank Bank of Maharashtra APTUS™#24ALM Surplus Position as on 31 Mar 2023 (Rs.Cr) 24 < 3 months 547 860 Surplus 313 476 3-6 months 185 661 658 353 6m to 1 year 1012 2065 843 1 to 3 years 2908 1235 3 to 5 years 596 5 to 7 years 528 7 to 10 years 543 >10 years 991 ■ Outflows Inflows 2059 2283 2707 Q4 FY 23 Investor Presentation 1472 1688 1531 448 APTUS™#25Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (Cr) As on Mar-23 Borrowings - Fixed Vs. Floating 25 6738 1549 6738 (23%) 1550 (23%) 60% 61% 62% 58% 57% 59% 2230 (33%) 5188 (77%) 2959 (44%) Loan Assets Borrowings/Equity Equity Fixed Floating gap between Loan Assets & Borrowings filled by a portion of Equity 42% 43% 41% 40% 39% 38% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 -Fixed % -Floating % Q4 FY 23 Investor Presentation APTUS™#26Comfortable liquidity position/Capital Adequacy A. Liquidity Unencumbered Cash and Cash Equivalents Un availed sanctions from NHB/Banks Rs. Crores 26 Total Particulars Opening Liquidity Add: Principal repayments and surplus from operations Less: Debt repayments 511 625 1,136 Q1 FY 24 Q2 FY 24 1,136 1,236 325 342 225 235 1,236 1,344 Closing Liquidity Rs.1340 crores available for business upto Sep 2023 B. Capital Adequacy Capital Adequacy as on 31 March 2023 -80.79% Q4 FY 23 Investor Presentation APTUS™#27Key Growth Strategies 27 27 6 ד Continued Focus on Existing Segment & strengthen focus on SME Deeper Penetration in Existing Markets & Expand in new markets Continued focus on productivity & Cfredit Cost • Ticket Size in INR 0.5 - 1.5mn range • Large headroom in new to credit, retail segment • Different templates of customer profiles to increase business while managing risks • Increasing penetration and Contiguous expansion • Branch expansion in new markets - Odisha and Maharashtra Focus on productivity & Opex including cost of funds • Continue to improve credit ratings Q4 FY 23 Investor Presentation APTUS™#28Experienced and Well Diversified Board Chairman Managing Director 28 Non-Executive Nominee Directors M. Anandan Executive Chairman Non-Executive Director P. Balaji Managing Director Sumir Chadha Nominee Director - WestBridge Non-Executive Independent Directors Shailesh J. Mehta Partner, Granite Hill Capital Partners S. Krishnamurthy Former MD and CEO, SBI Life Insurance K. M. Mohandass Partner, KM Mohandass & Co. Non-Executive Independent Directors VG Kannan Former MD, SBI Mona Kachhwaha Director Impact Investors Council Q4 FY 23 Investor Presentation KP Balaraj Nominee Director - WestBridge Krishnamurthy Vijayan Former MD, JPM Asset Mgmt. APTUS™#29Key Leadership Elevations 29 Mr. Balaji elevated to the role of Managing Director Associated with Aptus for more than 12 years 25+ years experience in textiles, telecom and finance Mr. Manoharan elevated to the role of Chief Business Officer Associated with Aptus since 2010 18+ years experience in Housing Finance Industry Mr. John elevated to the role of Chief Financial Officer Joined Aptus in 2021 25+ years experience in Finance, Operations and Internal Audit APTUS™#30Stable Management 30 C.T. Manoharan Chief Business Officer Rich experience in housing finance industry across sales, management channel and distribution Balaji P Managing Director Several years of experience in finance, treasury, banking, fund raising John Vijayan Chief Financial Officer Experience in Financial Services in the areas of Operations, Finance, Customer Servicing and Internal Audit. V. Krishnaswami Sr. Vice President - Information Technology Experience in strategizing and implementing digital technology solutions, IT designs and, infrastructure. Sundara Kumar V Vice President - Legal & Receivables Legal experience in title deed scrutiny, SARFAESI and arbitration procedures in housing finance / mortgages. Ramesh K Vice President - Credit Rich experience in areas of Credit & Risk Management, Fraud Control and operations in retail finance. N.Srikanth Vice President - HR Seasoned Professional with experience in HR planning, recruitment, training, induction, employee relations and engagement Naveen Kumar R Associate VP - Operations & Compliance Experience in Housing Finance Industry specific to Operations, Customer Service, Portfolio analytics and Supervision of LOS/LMS Q4 FY 23 Investor Presentation APTUS™#31Diversified Shareholding Shareholding Pattern as on 31 Mar 2023 Public & Others. 5.67% 31 DII 2.58% Top Institutional Shareholders as on 31 March 2023 Investor Details % of holding Key Investors Investor Promoter- WestBridge 37.19% Malabar Group 8.42 Ward Ferry 3.50 Capital Research 3.40 Steadview Capital 3.19 Sequoia 2.66 Madison 1.86 Aberdeen 1.75 Vanguard 1.42 Genesis 1.08 Neuberger Berman 0.96 Q4 FY 23 Investor Presentation APTUS™ FII 29.54% Founder Promoter- M.Anandan 25.02%#32Annexures 32 Q3 FY 23 Investor Presentation APTUS™#3333 Consolidated Statement of Profit and Loss(*) Rs. Crores Growth % FY 23 Particulars Q4 FY 23 Q3 FY 23 FY 23 FY 22 Vs FY 22 Interest income on loans 290.61 277.32 1,058.40 791.67 34% Fees and other income 17.78 17.48 70.60 48.55 Interest expense 77.66 77.16 275.91 208.59 NIM 230.72 217.64 853.08 631.63 35% Operating expenses 46.58 41.43 165.24 117.14 Provisions - ECL/Write offs 7.75 7.78 34.12 34.47 Profit before tax 176.38 168.43 653.71 480.02 36% Provision for Taxation 41.08 42.87 150.70 109.88 Profit After Tax 135.30 125.56 503.01 370.14 36% (*) Based on Ind AS Q3 FY 23 Investor Presentation APTUS™#3434 Consolidated Statement of Assets and Liabilities (*) Rs. Crores Sources of Funds Particulars 31-Mar-23 31-Mar-22 Share capital 99.61 99.38 Reserves & Surplus Total Networth Borrowings Other liabilities and provisions 3,239.72 2,816.78 3,339.33 2,916.16 3,786.02 2,720.63 50.70 47.25 Total Source of Funds 7,176.05 5,684.04 Application of Funds Loan Assets Fixed Assets Liquid Assets - Bank FDS, MFs Other Assets 6,592.14 4.55 511.42 5,078.75 4.01 547.59 Total Application of Funds 67.93 7,176.05 53.69 5,684.04 (*) Based on Ind AS Q3 FY 23 Investor Presentation APTUS™#3535 RoA Tree Particulars Revenue from operations/Avg Loan book FY 23 FY 22 18.34% 17.51% Other Income/Avg loan book 0.60% 0.67% Total Revenue/Avg loan book 18.94% 18.17% Finance cost/Avg loan book 4.63% 4.51% Spread/Avg loan book 14.31% 13.66% Operating expenses/Avg loan book 2.75% 2.53% ECL Provision, write offs/Avg loan book 0.57% 0.75% PBT/Avg loan book 10.97% 10.38% PAT/Avg loan book 8.44% 8.00% PAT/Networth 16.34% 14.45% Q3 FY 23 Investor Presentation APTUS™#36Thank You 36 Q3 FY 23 Investor Presentation APTUS™