#1Poonawalla Fincorp Limited (Formerly known as Magma Fincorp Limited) Investor Presentation Q3 FY23 P POONAWALLA FINCORP Scalable Business Model | Pure Retail Play | Digital-First Tech-Led | Customer Centric#2Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction: Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 2#3Q3FY23 Performance - PFL Standalone Excellent Quarter on All Fronts Differentiated strategy and execution excellence led to all round performance across business growth, credit quality & profitability P Highest ever quarterly disbursement Highest ever PAT & ROA Lowest GNPA & NNPA Recent rating upgrade to AAA/Stable by CARE What do we stand for AUM 13,929 +28% YoY +6% QoQ Amounts incr Disbursement 3,369 +157% YoY +8% QoQ Profit after Tax 150 +88% YoY +16% QoQ ROA 4.5% +158 bps YoY | +46 bps QoQ GNPA* 1.69% "Scalable business model with pure Retail play strategy" -236 bps YoY | -8 bps QoQ "Technology led and customer centric approach" CRAR (Standalone) 44% "Business construct to deliver sustainable RoA of 4.0% - 4.5%" NNPA* 0.89% -108 bps YoY | -5 bps QoQ NIM 10.7% +94 bps YoY | +33 bps QoQ *The reduction in GNPA/NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3/NS3 of previous periods 3#4Executive Summary - PFL Standalone Setting the momentum for expanding growth horizon Strong Business Momentum Continues in Q3FY23 ■ Highest ever quarterly disbursement of 3,369 cr with new products scaling up well P ■ Consistent increase in disbursement: Up 157% YoY & 8% QoQ ■ AUM at 13,929 cr with a growth of 28% YoY & 6% QoQ despite sharp reduction in discontinued legacy book | Focused AUM grew by 75% YoY & 10% QoQ - Strengthened Distribution – Direct Digital Program (DDP) ■ DDP contribution in disbursements increased to 66% in Q3FY23 compared to 54% in Q2FY23, 39% in Q1FY23 & 24% in Q4FY22 ■ All the products covered under DDP model Efficiently Managed Liability Book ■ Average CoB contained to 7.54% in Q3FY23 in a rising interest rate environment | 7.16% in Q2FY23 ■ Added multiple new relationships during the quarter across Mutual Funds, Banks & Corporates Amounts incr ■ Recent long term credit rating upgrade to 'AAA/Stable' by CARE 4#5Executive Summary - PFL Standalone Setting the momentum for expanding growth horizon Robust Asset Quality Rise in Profitability %80 ☐ P ■ GNPA* & NNPA* reduced to 1.69% & 0.89% respectively compared to 1.77% & 0.94% in Q2FY23 and 4.05% & 1.97% in Q3FY22. Stage 3 PCR stood at 47.8% as on Q3FY23 ■ NIM at 10.7% vis a-vis 10.4% in Q2FY23 & 9.8% in Q3FY22 | Increased by 33 bps QoQ & 94 bps YoY PPOP stood at PAT stood at 156 cr up 23.3% QoQ & 34.1% YoY 150 cr up 15.6% QoQ & 87.5% YoY ■ Highest ever RoA at 4.5% compared to 4% in Q2FY23 & 2.9% in Q3FY22 End to End Digital Capabilities 100% digital journey capability for customers across all products ■ Focus on customer/partner advocacy: Robotic interfaces, Straight through processing, Multiple self-service channels Advanced data analytics usage - Across sales(Including X sell), underwriting, collections & risk monitoring *The reduction in GNPA/NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA/NNPA Sep-22 onwards drawn from GS3/NS3 of previous periods 5#6Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 6#7Scalable Business Model to Drive Profitable Growth Uniquely positioned - PFL Standalone Inherent Strengths... Brand Strength & Strong Management Flagship financing arm of Cyrus Poonawalla Group with shared brand identity Professionally run organization with seasoned leadership team Robust Balance Sheet Healthy CRAR at 44% against regulatory requirement of 15% Digital First and Technology Led Digitalized end to end processes Advanced data analytics being leveraged for all business use cases Retail Franchise Focus on Consumer & MSMEs with diversified product suite & PAN-India retail franchise Granular book | Risk based pricing P Target Market Aligned Distribution & Products Unique sourcing model with mix of Direct Digital Program (DDP) and DSA Digital First Products focused on credit tested customers Efficiently Managed Liability Book Recent rating upgrade to 'AAA/Stable' by CARE Diversified borrowing base ...to capture market opportunities Technology disrupting traditional ways of lending Rapid expansion & consolidation (Partnership / acquisition) in Fintech space Exponential rise in digital lending with focus on customer experience & faster TAT Structural tailwinds Fast growing economy punctuated by high share of consumption spending Favorable demographics: High share of digital savvy young population with rising acceptance of credit Large and fast growing total addressable market Large and growing opportunity for consumer & MSME finance Growing demand for Pre-owned cars + shift towards digital marketplaces 7#8Management Vision 2025: PFL Standalone Performance well ahead of long-term guidance P Vision 2025 To be amongst the Top 3 NBFCs in consumer and MSMES Risk-calibrated accelerated growth, ~3x of FY21 AUM On the right track (Q3FY23 status) Product diversification to have large presence in chosen segments. Leadership in select products achieved. AUM @ 1.3x of FY21 | Focused AUM @ 2.7x of FY21 Amongst the lowest COF in the industry ~250 bps Reduction in borrowing cost Achieved To continue to be amongst the lowest cost borrower Best-in-class Asset Quality; Net Stage 3 < 1% Achieved Net NPA @ 0.89% as on 31st Dec'22 8#9Long Term Guidance on Financial Metrics PFL Standalone - Profitable Growth with Best in Class Asset Quality % AUM Growth 35-40% Ф Profit Growth 30-35% NNPA 0.5-0.9% 888 Return on Assets 4-4.5% GNPA 1.3-1.8% P 9#10Successfully Executing our Strategic Plan PFL Standalone 1 Differentiating by Offering Superior Customer Value 2 Aligning Distribution & Products that Suit Target Market 3 Digital-First, Technology-Led to the Core 4 Upholding Robust Credit Quality 5 Continuously Optimizing Cost of Borrowing & Liquidity 6 Future Ready Human Capital with Strong Leadership P 10#111 Differentiating by Offering Superior Customer Value To ensure sustainable growth & leadership in chosen segments - PFL Standalone cr Accelerating organic disbursement growth 3.1x Focused AUM has grown 75% YoY cr 3,369 3,110 2,379 1,600 1,090 P 1.75x- 10,325 12,738 11,616 8,791 7,288 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 100% end to end digital journey capability Customer Orientation: Committed to give superior experience & create customer delight Amongst the best Turn Around Time (TAT) Continuous engagement across customer lifecycle Minimal paperwork, reduced human intervention & advanced data analytics Amongst the best NPS score in industry | 24*7 customer service availability using digital mediums Constant reduction in TAT | Loan disbursals facilitated by lean & agile backend operations Through distribution reach & technology 11#122a Distribution: In Sync with Emerging Business Models Direct Digital Program (DDP) led distribution model - PFL Standalone Direct Channel In-house sourcing of customers through own branches & call center Digital Channel In-house sourcing of customers through web, social media & other digital platforms Digital ecosystem Multiple tie-ups, alliances & partnership arrangements Accelerated customer acquisition... ...with enhanced X-sell I upsell capabilities ...at a cost lower than traditional origination led model... P DDP Distribution Higher Profitability ► Rise in proportion of Direct Digital Program (DDP) Mix Focus on Customer Lifetime Value (CLTV) ►Technology first & risk calibrated approach 66% of disbursement came through DDP channel in Q3FY23 compared to 54% in Q2FY23, 39% in Q1FY23 & 24% in Q4FY22 X-sell upsell & pre-approved offers Leads to lower customer acquisition cost & better asset quality 12#13P 2b Product Suite: Tailored for the Target Segment Focus on Consumer & MSME segment with diversified offerings - PFL Standalone Upcoming products Existing products Pre-owned Cars Digital Business Loans Machinery Loan Credit Card Merchant Cash Advance Digital Personal Loan Digital Consumption Loan EMI Card Digital Consumer Finance Digital Loan to Professionals Medical Equipment Loan Auto Lease Digital SME LAP Supply Chain Finance Expanding product suite to meet customer needs Digital led product innovation Complete transparency in product features Consumption led new customer acquisition with an eye on future Leveraging customer base for X-sell / up-sell opportunities Digital First products, processes & entire customer journey No hidden charges 13#14За Digital-First, Technology-Led to the Core Leading to competitive moat, efficient operations & sustained growth - PFL Standalone Deep Investments in Technology Core Micro Services Cloud Cloud based applications based architecture API Factory API based backbone for integrations Infosec Cyber threat resilient competencies Building a Tech led Play Customers Self service online web application Contact center led digital onboarding Contactless customer service Partners P Extended API Infrastructure CRM Extension Customized Credit & Risk Digitized Operating Layer with controls inbuilt Sales Process Digitization Credit Decision Automation Disbursement & customer service Digitized Collections Modular || Scalable || Secure || Analytics Driven || Plug & Play Technology API Backbone & Cloud Ready Infrastructure Robotic Process Automation Best-in-Class Infosec Data Analytics & Machine Learning Driven Backend built to scale → capability to process high volume & high speed of transactions Preferred partner for Tech-led ecosystem Last mover advantage Plug & Play API Stack → Less customization + Low maintenance Speed of Execution - BRE, API based integration for underwriting checks & validations Faster adoption of technology leading to fully digitized business operations 14#153b Digital Transformation Yielding Results PFL Standalone P End to End Digitalized Lending - Lower TATS, Minimal Paperwork, Reduced human intervention " End to end digital journey capability for customers across all products via Digital KYC, Digital Onboarding (E-sign, E-agreement & E-NACH), Automated BRE for quick decisioning & Digital collections via multiple payment modes | Rise in penetration for all metrics ☐ Straight Through Digital Small Ticket Personal Loan started - Single interface for customer Focus on customer/partner advocacy - Robotic interfaces, Straight through processing, Multiple self-service channels " Seamless & integrated Omni-channel customer engagement (call center, branch office, mobile app, and website) with focus on 'First Time Right' service and maximizing NPS on all transactions ☐ 100% digital onboarding of channel partners with same day TAT + system-based payouts + online platform for loan application Advanced data analytics usage - Across sales, underwriting, collections & risk monitoring Policy optimization & rationalization done through portfolio deep dive using advanced analytics | Risk scorecards for pre-approved offers, Propensity models leading to higher sales conversions | Predictive models for delinquency & risk segmentation to streamline collection effort Leverage 'data warehouse' with real time update of customer data 15#164 Upholding Robust Credit Quality PFL Standalone Consistent outperformance on Asset Quality GS3/GNPA (%) NS3/NNPA (%) 4.05 3.29 2.68 1.77 1.69 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 1.97 Dec-21 P 1.30 1.11 0.94 0.89 Mar-22 Jun-22 Sep-22 Chosen market segment, Prudent underwriting & Collection capabilities: Drivers of our robust asset quality High Quality customer profile Metropolitan & Urban area focused portfolio Closely monitored Early Warning Signals Conservative underwriting standards with counter cyclic adjustments in policy and front ended Write offs Early-stage delinquency within guardrails Dec-22 Approval rate guided by conservative policy parameters to have predictable portfolio quality *The reduction in GNPA / NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3/NS3 of previous periods 16#175 Optimizing Cost of Borrowing & Liquidity Position PFL Standalone P Two notch increase in credit rating to AA+/Stable by CARE 9.10% Assigned AA+/Stable credit rating by CRISIL 8.00% Average Cost of Borrowing (PFL) 7.50% Credit rating upgraded to AAA/Stable by CARE 7.16% 7.54% 6.97% Repo rate hike → 40 bps in May 50 bps in June 50 bps 50 bps 35 bps in Aug in Sep in Dec Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Dynamic liability management Expansion of lenders / subscribers Maintaining adequate liquidity Enabling growth at optimum cost of borrowing Optimum mix of instruments & diversified sources leading to competitive cost of borrowing Onboarded new Mutual Funds, Banks & Corporate lenders *3,168 cr of liquidity surplus 17#18Future Ready Human Capital with Strong Leadership 6 Building the Right Culture - PFL Standalone P • • • Productivity & Rewards OKR framework launched New incentive model & policy implemented Enhanced ESOP coverage to include middle management • Productivity enhancement program across the functions leading to leaner structures Development Well defined development plan across all levels Competency framework implemented Functional & Behavioral training program launched. • Leadership program for high potentials . Operational Efficiency New HRMS system & analytics launched Strengthened the staff governance framework Flexibility at work- Leave, Work From Home & Comp Off . ካብ 100 Employee Engagement Employee satisfaction survey with GPTW initiated • Synergy - Organization wide townhalls started • Fun at work programs • Reward & Recognition program Building a high performance culture in the organization with a balance of employee development & engagement. Recognised as a Most Preferred Workplace 2022-23 by Marksmen Daily. 18#19Performance Parameters Robust growth continues | Significant reduction in GNPA & NNPA-PFL Standalone Disbursement 1,310 AUM Net-worth P Amounts in cr ■Focussed ■Discontinued 6,212 3,110 3,369 2,901 13,161 13,929 12,606 6,018 2,539 11,765 10,914 1,545 1,192 5,878 2,281 2,974 5,715 3,626 5,616 12,738 11,616 10,325 8,791 7,288 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Average Cost of Borrowing GS3 GNPA* 8.0% 7.5% 7.5% 4.05% 7.2% 7.0% 3.29% 2.68% 1.77% 1.69% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 NS3/NNPA* 1.97% 1.30% 1.11% 0.94% 0.89% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 *The reduction in GNPA/NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3/NS3 of previous periods 19#20ALM statement and Liquidity PFL Standalone P Structural Liquidity Statement as on 31st Dec 22 ■Cumulative inflows ( in Cr) ■Cumulative outflows( in Cr) 18244 18244 16948 15537 1625 10138 9755 7762 5992 5300 4738 3662 881 25 1068 68 1102 256 379 536 0-7 days 8-15 days 15-30 days 1-2 m 2-3 m 3-6 m 6-12 m 1-3 Y 3-5 y >5 Y 0-7 days 8-15 days 15-30 days 1-2 m 2-3 m 3-6 m 6-12 m 1-3 Y 3-5 y >5 Y Cumulative 856 1001 3406 4359 4764 6660 4146 5782 5323 0 Positive Gap Cumulative (%) 3419% 1480% 1330% 1149% 888% 604% 69% 59% 46% 0% Amounts in cr Liquidity as on 31st Dec 22 for PFL standalone at ₹3,168 cr in the form of cash, cash equivalents and undrawn bank lines 20#21Asset Quality Significant improvement on sustained basis - PFL Standalone Particulars Dec-21 Sep-22 Dec-22 Stage 1 & 2 Assets 95.95% 98.23% 98.31% Stage 1 & 2 PCR 3.85% 1.35% 1.26% Gross Stage 3 (* cr) / GNPA* 420 224 223 Net Stage 3 (cr) / NNPA* 200 118 117 Gross Stage 3 / GNPA* 4.05% 1.77% 1.69% Net Stage 3 / NNPA* Stage 3 PCR % of on book AUM 1.97% 52.44% 0.94% 47.31% 47.77% 0.89% Portfolio well provisioned: On book AUM of discontinued portfolio has come down to 796 cr from 1,276 cr in Q2FY23 172 cr ( 1.2% of AUM) as on Dec22 from 246 cr (1.9% of AUM) as on Sep22 78 cr ( 45% of restructured book) The restructured book reduced to Restructured book in 0 bucket at P *The reduction in GNPA/NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3/NS3 of previous periods 21#22Profit & Loss Statement - PFL Standalone Particulars Q3FY23 Q3FY22 Q2FY23 YOY QoQ FY22 NII 360 270 336 33.2% 7.0% 1058 Opex 204 154 210 32.4% (2.8%) 595 PPOP 156 116 127 34.1% 23.3% 463 Credit Cost (45) 10 (47) (5.2%) 78 Profit Before Tax 201 107 174 88.2% 15.6% 385 Profit After Tax 150 80 130 87.5% 15.6% 293 Amounts in cr P 22 22#23Balance Sheet - PFL Standalone Particulars 31-Dec-22 31-Dec-21 30-Sep-22 31-Mar-22 Cash & Bank Balances 99 688 335 537 Receivables 23 17 22 14 Loans (Net of provision) 12,883 9,714 12,290 10,678 Investments 1,138 820 1,479 820 Other Financial Assets 470 139 317 144 Non-Financial Assets 513 635 534 616 Total Assets 15,127 12,014 14,978 12,810 Borrowings 8,418 6,028 8,510 6,726 Other Liabilities 498 370 450 369 Share Capital 153 153 153 153 Reserves & Surplus 6,059 5,463 5,865 5,562 Total Liabilities 15,127 12,014 14,978 12,810 Amounts in cr P 23#24Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction: Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 24#25PHFL Transaction - Update & Rationale Update Poonawalla Fincorp announced sale of its Housing Subsidiary P In Q3FY23, Poonawalla Fincorp board approved sale of its housing subsidiary Poonawalla Housing Finance Limited to TPG (Perseus SG Pte. Ltd., an entity affiliated with TPG Global, LLC) at a valuation of INR 3,900 Crores. Shareholders approval has been received and regulatory approval is under process. ► Shareholder Value Maximization Maximize the shareholders' value in the long term as Poonawalla Fincorp focusses on building a Tech-Led and Digital-First financial services company, with leadership in consumer & MSME financing. Rationale ► Differentiated Business Models In the best interest of both the entities and all stakeholders considering the different customer segments, geographies, and distribution model. Poonawalla Fincorp will continue to focus on its growth coming from Tech-Led businesses and a branch- lite model while Poonawalla Housing. will follow its own differentiated path as a completely independent business. ► Resource Optimization and Focus Will help both the entities focus on maximizing value creation by optimizing resource allocation and increasing management focus on their respective business needs. 25#26Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction: Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 26#27P POONAWALLA FINCORP Digital Transformation Journey So Far & Way Forward It's been 6 quarters since Magma acquisition; we have successfully completed Phase 1 of technology transformation and launched multiple new products as per our stated strategy. It has helped put in place a stable and scalable digital platform. With strong roots in place, the Company has now embarked on the phase 2 journey and on its way to launch EMI card, Credit card, and other Digital Loan offerings over the next 3 quarters through a state-of-the-art digital platform to offer superior customer experience. Forthcoming slides outline the strategic roadmap of Phase 2... Classification | INTERNAL 27 27#28Strong Roots of Digital, Technology & Analytics Successfully implemented in Phase 1 over the last 6 quarters Core Platform API Gateway Marketing Solutions Customer Relationship Management Lead generation Calling & Campaigns Validations & Checks SMS P Loan Origination Platform Rule Engine Platform Onboarding Process workflow Advanced validations Real time Analysis Policy validation Decision engine Multiple APIs for seamless interface Loan Management Platform Loan Servicing Loan Repayment Loan Closure Collection Management Platform Dues follow up Case Allocation & Legal Repo. & Settlement WhatsApp Dialler Operations Customer History Contact Centre E-mail Customer Offers Custom Journeys Contact Centre Single customer view Call Governance Data & Analytics Digital Straight Through Processing (STP) Digital KYC Smart Contract Infrastructure Cloud Infrastructure Channels Pre-Approved / Qualified Offer Generation Chatbot & Robotic Process Automation Disaster Recovery Infrastructure Across Sales & Service Product X-Sell / Up Sell Propensity Unified Payments Platform High Availability Infrastructure Data Warehouse End 2 End Web based Journeys Data Security Branch || Direct Sales || Web || Contact Centre || Direct Sales Agent || App Analysis & Reporting Strong Digital Marketing Capabilities Cyber Security 28#29Phase 2: Deepening Technology, Digital & Analytics Innovative, Personalized, Engaging & Convenient - For superior customer experience Highly customised orchestration layer integrating across channels to create unique experience P Data Apps Consumer Products Eco-System Personalization Engagement Consent Based Data Consumer App Transaction Credit Merchant Partnerships Demographic Rewards Digital Footprint Data Merchant App Subvention Based E-Commerce Partnerships Behaviour Promotions Eco-System Data Partner App Check Out Finance Payments Partnerships Propensity Utilities Auto Refresh Data Referral App Card Products Merchant Platforms Contextual Notifications Best-In-Class → || Customer Experience || Customer Service || Customer Engagement || The Future of Digital is here... Optimised for Network Effect... and hence Disruptive Growth. 29#30Phase 2 : Journey Started.. On track to deliver it over next 3 Quarters (20% work completed in Q3FY23) Enhanced Digital Platform Customer Portal Partner On-boarding & Self Service Platform Straight Through Disbursal Platform Automated & Fully Integrated Sales Incentives & Commissions Engine Customer Mobile Super App App Based Lending Fully Integrated Cloud ERP Platform & Referrals Merchant Mobile App P Digital Collections Platform Fully Integrated Treasury Management Platform New Digital Products Supply Chain Finance Merchant Finance Virtual Cards Transaction Finance Credit Limit Program Network & Marketplace Marketplace E Commerce Referrals Program Co-Lending QR Code Merchants AI & ML Initiatives Infrastructure ML Scorecards based Campaigns Al Powered Automated Outbound Sales Calls Multi Cloud Hosting Al Enabled Automated Voice Based Collections Al Powered Inbound Voice Assistant Enhanced Info Security Operations Center Al Enabled Digital Assistant for Customer Self Service ML Based Collections Scorecard Network Operations Center Omnichannel Customer Persona Based Onboarding ML Based Behavior Scorecard DevOps Platform Al Powered Transaction Recon Engine ML Powered Sales Forecast & Management Dashboards Zero On-Premises Data Center Future Tech Thought Leadership Strong In-house Team Industry best Training Program for Fresh Engineering Talent 30#31Phase 2: Enhanced Customer Service - 360° View* Self Service, Personalized, Insight Driven - "Making Service delivery a Sales Channel" Tenure/ROI Co-applicant Agreement Future Emi's Loan Details Self Service & FTR Resolutions • • Agent assist & Customer 360 Loan details One click send for customer requests Integration with Insurance hub Customer Interaction Management Omnichannel 360° View Hyper-Personalization for • • . distinctive & contextual experience. CRM to Cloud telephony dialler Integration Customer Portal & Mobile App Self Serving Kiosk @ branches Integrated Communication Hub Customer Insights • • • Insurance Branch Walkin Call center/IVR Email/SMS Whatsapp/Chat BOT NPS - VOC Collections across lifecycle NPS Score addition & mapping in MSD CRM through all digital channels Customer Sentiment Analysis Building Customer Happiness Quotient Contextual hyper-personalized communications Portal/Mobile App NPS/VOC Customer Interaction Happiness Quotient Behavioral Data Social Media Seeds Documents Repayment details Incentive Earned Lead Management Cross Sell Top Up Offers Pre Approved Offers Demographic Data Transaction Data Closure/Refund KYC • . • Promote & Manage Cross Sell P Segmented campaign management in CRM STP fulfilment journey for Pre-Approved Offers Co-browser assisted Journeys Lead Management & tracking Drive STP & FTR . E-Nach Status/curing/swapping • E-Nach registration (tracking) . Personal Details CKYC/Re-KYC initiation Personal data updation (Email / Mobile) Bank Details Restructuring/Resch eduling STP Servicing, Process Automations Unified Payment Platform . . • Realtime Payment Posting & Receipting Proactive NOC Issuance Automation Closure & Refund Issuance Automation *~ 20% progress made in these propositions - On Track 31#32Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 32#33Profit & Loss Statement - PHFL Particulars Q3FY23 Q3FY22 Q2FY23 FY22 NII 125 63 109 263 Opex 64 42 59 147 PPOP 61 20 50 116 Credit Cost 15 (8) 7 14 Profit Before Tax 46 28 43 101 Profit After Tax 34 21 33 77 Amounts in cr P 33#34Balance Sheet - PHFL Particulars 31-Dec-22 31-Dec-21 30-Sep-22 31-Mar-22 Cash 409 61 173 62 Loans 4,993 3,606 4,727 4,177 Other Financial Assets 155 104 133 86 Non-Financial Assets 68 43 63 62 Total Assets 5,625 3,814 5,095 4,387 Borrowing 4,274 2,673 3,838 3,198 Other Liability 162 92 106 107 Share Capital 252 252 252 252 Reserves and Surplus 936 796 899 830 Total Liabilities 5,625 3,814 5,095 4,387 Amounts in cr P 34 44#35Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 35#36Profit & Loss Statement - Consolidated Particulars Q3FY23 Q3FY22 Q2FY23 YoY QoQ FY22 NII 482 334 446 44.2% 8.1% 1325 Opex 268 196 269 36.7% (0.1%) 742 PPOP 214 138 177 55.0% 20.7% 583 Credit Cost (30) 2 (41) 93 Profit Before Tax 244 130 218 86.8% 11.9% 492 Profit After Tax 182 96 163 89.1% 11.8% 375 Amounts in cr P 36#37Balance Sheet - Consolidated Particulars 31-Dec-22 31-Dec-21 30-Sep-22 31-Mar-22 Cash & Bank Balances 507 747 506 597 Receivables 23 17 24 15 Loans (Net of provision) 17,862 13,312 17,012 14,851 Investments 329 0 659 0 Other Financial Assets 606 241 442 235 Non-Financial Assets 632 757 649 746 Total Assets 19,959 15,074 19,293 16,443 Borrowings 12,692 8,677 12,348 9,909 Other Liabilities 627 472 535 476 Share Capital 153 153 153 153 Reserves & Surplus 6,487 5,772 6,257 5,905 Total Liabilities 19,959 15,074 19,293 16,443 Amounts in cr P 37#38Agenda P 1 Overview & Executive Summary 2-5 2 Strategy Execution | Business & Financial Highlights: PFL Standalone 6-23 3 PHFL Transaction Update & Rationale 24-25 4 Digital Transformation Journey So Far & Way Forward: PFL Standalone 26-31 5 Financial Highlights: PHFL 32-34 6 Financial Highlights: Consolidated 35-37 7 Board Members, Awards & Accolades 38-40 38#39Board of Directors - Poonawalla Fincorp Experienced & Diversified Board Mr. Adar Poonawalla Chairman & Non-Executive Director Mr. Abhay Bhutada Managing Director Mr. Amar Deshpande Non-Executive Director Ms. Vijayalakshmi R. lyer Independent Director Mr. Prabhakar Dalal Independent Director Mr. Bontha Prasad Rao Independent Director P Mr. Sajid Fazalbhoy Non-Executive Director Mr. Atul Kumar Gupta Non-Executive Director Mr. G. Jaganmohan Rao Independent Director Mr. Sanjay Kumar Independent Director 39#40Awards and Accolades Recognition from Industry circles HR Practices Customer Centricity MARKSMEN DAILY Presents Digital NBFC P Recognized as the MOST PREFERRED WORKPLACE most preferred workplace 2022-23 2022-23 CX The Economic Times recognises Poonawalla Fincorp One of the most Customer centric Brands at Economic Times CX Summit INDIA NBFC SUMMIT & ANOS 2023 POONAWALLA FINCORP LTD. BEST DIGITAL NBFC OF THE YEAR 'Best Digital NBFC of the Year' award at the 4th Annual India NBFC Summit 2022 at me of the organisations for Excellence in CK-2022 2022 SYNNEX OYBER SECURITY EXCELLENC AWARDS 2022 ORGANISED BY QUANTIC Cybersecurity Financial Team of the Year-NBFC Poonawalla Fincorp Limited Cyber Security 'Cybersecurity Financial team of the year 2022' by Quantic India Operational Excellence QUALITY CIRCLE FORUM OF INDIA CHAPTER 37 CONVENTION th ANNUAL CCQC-2022 75 Azadi Ka Amrit Mahotsav Gold award at the 37th annual convention of Quality control forum of India (QCFI) - 2022 Best Brand B₁₁ THE ECONOMIC TIMES BEST BRANDS 2022 The Economic Times Poonawalla Fincorp as one of the Best Brands 2022 Best Brand award at the 5th Best Brands Conclave of The Economic Times - 2022 CASE STUDY COMPETITION GOLD AWARD 40#41Disclaimer P This presentation has been prepared by Poonawalla Fincorp Limited (the "Company"), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefore. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition, and technology, can cause actual events, performance, or results to differ significantly from any anticipated development. Neither the Company, its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such persons' officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward-looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. 41#42Disclaimer (Continued) P The information contained in these materials has not been independently verified. Neither the Company, its directors, promoter affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/party intending to provide finance/invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement, or an offer document under the Companies Act, 2013, as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law in India. This presentation is strictly confidential and must not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that you are located outside the United States, and you are permitted under the laws of your jurisdiction to receive this presentation. This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the United States Securities Act of 1933, as amended (the "Securities Act"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company's securities have not been and will not be registered under the Securities Act. 42#43Team - Investor Relations THANK YOU P POONAWALLA FINCORP [email protected] www.poonawallafincorp.com Classification | INTERNAL