#1Chola Enter a better life brother BETTER LIVES BETTER NATION Cholamandalam Investment and Finance Company Limited CORPORATE PRESENTATION - December 2023 murugappa#2Chola Enter a better life Table of Contents murugappa 1. Group overview 2. Corporate overview 5. Funding profile 6. Subsidiaries performance B 3. Financial performance BETTER 4. Business segments' overview RISK 7. Environmental Social Governance 8. Risk management 2#3Murugappa Group Overview#4Chola Enter a better life Murugappa Group in a Nutshell murugappa 123 Years Years of Existence 3 Sectors Consolidated ER Group Market $9.0 Turnover $37.7 B (FY23) cap (as on 31st Dec 2023) 23ES 29+ Businesses R 10 NATION Listed Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 4#5Chola Enter a better life Murugappa Group Overview Agriculture Market Cap(Cr.) 46,752 Turnover (Cr.) 35,171 PAT(Cr.) 1,541 murugappa Murugappa Group murugappa Engineering ER Financial services 89,625 19,032 1,739 1,25,340 19,124 2,917 Coromandel PARRYS JA CUMI Chola Chola MS GENERAL INSURANCE Chola Financial Holdings INDIA Enter a better life Market Cap(Cr.) 36,870 9,882 21,159 68,466 1,05,819 NA 19,521 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,156 84 PAT(Cr.) 1,528 13 414 1325 2,666 193 58 Note: Market Capitalization of Financial services incl. Chola Investments and Chola Financial Holdings. Financial Performance are of FY 22-23. Market data as on 31st Dec 2023. Source: BSE 5#6Corporate Overview#7Chola Enter a better life SPIRIT OF MURUGAPPA Responsibility Integrity Passion The five lights The values, principles and beliefs that have always guided us and continue to show the way forward. Respect Quality Integrity We value professional and personal integrity above all else. We achieve our goals by being honest and straightforward with all our stakeholders. We earn trust with every action, every minute of every day. Passion We play to win. We have a healthy desire to stretch, to achieve personal goals and accelerate business growth. We strive constantly to improve and be energetic in everything that we do. Quality We take ownership of our work. We unfailingly meet high standards of quality in both what we do and the way we do it. We take pride in excellence. Respect We respect the dignity of every individual. We are open and transparent with each other. We inspire and enable people to achieve high standards and challenging goals. We provide everyone equal opportunities to progress and grow Responsibility We are responsible corporate citizens. We believe we can help make a difference to our environment and change lives for the better. We will do this in a manner that benefits our size and also reflects our humility. "The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." murugappa 7#8Chola Enter a better life Cholamandalam Investment & Finance Company Limited 33.1 lakh customers Helping customers enter better life 2 lakh customers in year 2000 to 33.1 lakh plus customers till date 52,408 employees B Experienced team to serv Experienced team to serve more customers murugappa 200 plus employees in year 2000 to 50,000+ employees today Rs. 1.4 lakh Cr. Total AUM Healthy ROA of 3.3% PAT 10 CAGR of 25% from FY14 to FY23 Rs. 105k+ Cr. market cap Rapid market cap growth TTER St From Rs. 840 Cr. in year 2008 to Rs. 105k+ Cr. in 2023 1309 branches Strong geographical presence Across 28 states/Union Territories 90% presence across tier III-VI towns 41° ₹ Diversified product portfolio Presence across Vehicle Finance loans, Loan Against Property, Home Loans, Consumer loans, Personal loans, SME Loans, Stock broking & distribution of financial products. Note: Employee count includes both on-roll and off-roll • Experienced management Experienced management team with relevant industry experience Significant synergies with Murugappa group, deriving operational and financial benefits 80#9Chola Enter a better life Our journey so far FY 2022 - 23 FY 2021 FY 2016-20 FY 2024 murugappa FY 1979-2010 • Commenced FY 2010-15 equipment financing • . Commenced Vehicle Finance business Started Chola Securities 2011 • Terminated JV with DBS • Mobile app rollout 2012 • Commenced Tractor Business 2006 ⚫ JV with DBS bank Singapore commenced Consumer Finance and Loan Against Property (LAP) Business 2009 2013 • Commenced HL Business • Commenced CE Business 2014 • 2016 New LEAP LOS Digital platform 2017 Gaadi Bazaar dealer platform . 2018 • Gen 3 scoring model .HRMS SaaS solution 101 ETTE 202 2021 • LAP platform • • digitization Digital Data Centre setup Inspite of Covid pandemic CIFCL B th 2019 • PAT crossed Rs.1000 Cr • HL platform digitization of 16% growth in assets and 44% growth in PAT . AI/ML based scoring model 2020 • Maiden issue of Masala Bonds with CDC • Launched Consumer & Small Enterprise Loan (CSEL), Secured Business & Personal Loan (SBPL) and SME Loan (SME) business. • ROA back to Pre- COVID levels. 2023 • Total AUM crossed 1 lakh Cr. 2024 Total AUM crossed *1.4 lakh Cr. • Increased branch network to 1309. • Launched a composite QIP issue of equity shares and CCD aggregating to Rs.4,000 Cr. • Crossed 1lakh crore market cap in Q2FY24. . Reaffirmed as constituent of FTSE4Good Index Series. • Exited Consumer Finance business 2015 • GNPA recognition at 150 Days 9 LMS Loan Management System LOS Loan Origination System AI/ML - Artificial Intelligence / Machine Learning RLH Resident Locations Heads#10Chola Highlights - YTD Dec23 (1) Enter a better life Particulars Disbursement YTD Dec23 Vs YTD Dec22 Disbursement at Rs.63,940 Cr, a growth of 40%. Business AUM Rs. 1,33,794 Cr in Q3 FY24 registering a growth of 40%. NIM PBT PBT - ROTA 7.4% as compared to 7.7% Rs.3,145 Cr, a growth of 29% 3.3% as compared to 3.6% Return on Equity 19.8% as compared to 19.1% murugappa Stage 3 (90DPD) GNPA (RBI) CAR 2.82% in Dec23 from 3.51% in Dec22. 3.92% in Dec23 as against 5.37% in Dec22 and NNPA at 2.56% in Dec23 against 3.76% in Dec22. 19.37%. Tier I at 15.55%. 10 10#11Chola Enter a better life Particulars Highlights - YTD Dec23 (II) YTD Dec23 Vs YTD Dec22 murugappa VEHICLE FINANCE Overview Disbursement PBT LOAN AGAINST PROPERTY Overview Disbursement PBT HOME LOAN Overview Disbursement PBT Well-diversified product portfolio spread across 1254 branches PAN India Focused on financing of Commercial, Passenger, Two-wheelers, Tractors and Construction Equipment in both New and Used Vehicles. Our focus continues to be on retail customers especially in smaller towns and rural areas Disbursement of Rs.35,385 Cr, a growth of 29%. PBT at Rs.1,644 Cr, a growth of 7% Focused on financing of Loan Against Property to SME customers for their business needs and operates out of 778 branches PAN India. Over 79% of the book is financed against Self-Occupied residential property as collateral. Disbursement of Rs.9,281 Cr, a growth of 42%. PBT at Rs. 703 Cr, a growth of 25% Focused on providing Home Loans under affordable segment with presence across 648 branches PAN India. 89% of assets are in tier 2,3,4 cities and suburbs of tier 1 cities Disbursement of Rs.4,615 Cr, a growth of 90%. PBT at Rs.319 Cr, a growth of 43% 11#12Chola Highlights - YTD Dec23 (III) Enter a better life Particulars NEW BUSINESS Highlights murugappa CSEL - Offers Personal Loans, Professional Loans & Business Loans to salaried, self-employed professionals and micro & small businesses through traditional DSA/DST model, partnerships and FinTech's. - present in 420 locations (419 co-located & 1 standalone) and have acquired over 8.7 lakh customers as on Dec23. SBPL - Offers secured business loan and secured personal loan against self-occupied residential property or commercial-cum-residential property as collateral - present in 377 locations (co-located) spread across 12 states as on Dec23. SME - The product suite includes Supply chain financing, Term loans for capex, Loan against shares, Funding on hypothecation of machinery for specific industries. Servicing out of 69 (co- located) locations with business growth both through traditional and Fintech partnerships. Particulars VF LAP HL No of Employees 36222 4453 5785 4618 New Business Businesses Enablers 1330 Chola 52408 No of Branches 1254 *778 *648 *626 *6 1309 No of Customers 2225611 49133 96183 940107 ΝΑ 3311034 *770 LAP, 608 HL and 625 new businesses branches are co-located with VF & 6 locations for Head office Functions and Operations in Tamil Nadu 12 12#13Chola Enter a better life Ecosystem Play in the MSME Sector murugappa Large Larger enterprises largely focused by Banks SME Focused by Medium (SENP) Focused by Chola via SME business since the last 5 years Enter a better life Small (SENP & SEP) Focused by Mini (SENP) Micro (SENP) Chola via LAP business since the last 15 years Enter a better life Chola via CSEL business | New Business Enter a better life Focused by Chola via SBPL | New Business & HL| 10 years Enter a better life Profiles such as street vendors, SHGS etc. with ticket size requirement of < INR 1L focused by MFI /Private finance 13#14Chola Enter a better life Public 5.37% Shareholding Pattern Corporate Mutual Bodies Funds 0.74% 18.39% FII 25.13% Shareholding murugappa Institutional Holders (More than 1%) Top Domestic Institutional Holding Axis Mutual Fund BAX LIV Promoters 50.37% SBI Mutual Fund . HDFC Mutual Fund • Birla Sun Life Mutual Fund Motilal Oswal BET Moti Top Foreign Institutional Holding ATIC Capital Group Vanguard Promoters' share holding of 50.37% includes o Cholamandalam Financial Holdings Limited - 44.41%, Ambadi Investments Limited - 4.02% Others - 1.99% • • Blackrock Norges Bank Investment Management Note: As on 29th Dec 2023 14#15Chola Enter a better life Punjab (26) Chandigarh (1) Haryana (40) Strong Geographical Presence Jammu & Kashmir (7) Himachal Pradesh (16) -Uttarakhand (20) murugappa 571 593 516 540 1191 1204 1267 1309 Delhi (5) Rajasthan (89) UP (83) Bihar (44) Gujarat (68) Madhya Pradesh (91) Dadra & Nagar Maharashtra (150) Haveli (1) Goa (3) Arunachal Sikkim Pradesh (1) Assam (30) FY23 Q1 FY24 Q2 FY24 Q3 FY24 Physical Branch ■RL Meghalaya (3) Mizoram (1) 25% 25% 24% 24% Tripura (4) 23% 22% 23% 24% West Bengal (64) Jharkand (29) 22% 22% 22% 22% Chhattisgarh (73) Odisha (59) BETT 30% 31% 31% 30% Telangana (45) Karnataka (84) Andhra Pradesh (57) Andaman & Nicobar (1) Puducherry (2) Tamil Nadu (158) FY23 Q1 FY24 Q2 FY24 HOM Q3 FY24 ■South North West East 7% 13% 7% 12% 6% 12% 6% 11% Kerala (53)- 1309 branches across 29 states/Union territories: 1254 VF, 778 LAP (770 co-located with VF), 648 HL (608 co-located with VF), 420 CSEL (419 co-located with VF), 377 SBPL, 69 SME (all co- located with VF) & 6 locations for Head office Functions and Operations in Tamil Nadu • 90% locations are in Tier-III, Tier-IV, Tier V and Tier-VI towns Note: Figures in brackets represents total no. of branches as on 31st Dec 2023. 80% 81% 82% 83% FY23 Q1 FY24 Q2 FY24 Q3 FY24 Rural Semi-Urban Urban 15#16Financial Performance 9050.56 8600 28 569.005 1200 65 1500.09 100.05 25601.01#17Chola Enter a better life Financial Snapshot -10 Years murugappa FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Financials Snapshot YOY IGAAP IGAAP Disbursements 13,114 12,808 IGAAP 16,380 IGAAP 18,591 INDAS INDAS INDAS INDAS INDAS 25,114 30,451 29,091 26,043 35,490 INDAS CAGR (5 years) CAGR (10 years) 66,532 87% 22% 20% Assets under management 23,253 25,452 29,650 34,167 Total Income 3,263 3,691 4,194 4,660 5,529 7,049 Interest expenses 1,771 1,960 2,051 2,231 2,659 3,589 42,924 54,279 60,549 69,996 76,907 9,576 10,139 4,576 4,299 1,06,498 38% 18% 18% 8,715 12,978 28% 16% 17% 4,592 5,749 34% 13% 14% Net Income 1,492 1,731 2,143 2,430 2,870 3,460 4,123 5,000 5,840 7,229 24% 20% 19% Operating Expenses 658 749 845 1,013 1,115 1,270 1,578 1,583 2,069 2,780 34% 22% 17% Operating Profit Before Loan Losses 834 982 1,298 Loan Losses & Provision 283 325 427 1,416 311 1,754 353 2,190 2,545 3,416 3,771 4,449 18% 19% 20% 367 959 1,378 880 850 -3% 23% 13% Profit before tax 550 657 871 1,106 1,401 1,823 1,586 Profit after tax 364 435 568 719 918 1,186 1,052 2,038 1,515 2,891 3,600 25% 19% 23% 2,147 2,666 24% 22% 25% Ratios Net Income to assets (%) 7.7 6.9 7.7 7.5 7.7 7.0 6.9 7.3 7.9 7.7 Expense to assets (%) 3.4 3.0 3.0 3.1 3.0 2.6 2.6 2.3 2.8 3.0 Losses and provisions (%) 1.5 1.3 1.5 1.0 0.9 0.7 1.6 2.0 1.2 0.9 Return on assets (PBT) (%) 2.8 2.6 3.1 3.4 3.7 3.7 2.7 3.0 3.9 3.8 Cost to Net Income (%) 44.1 43.3 39.4 41.7 41.4 38.9 36.7 38.3 31.7 35.4 Networth 2295 *3173 3657 4285 5098 6176 *8172 9560 11708 14296 Tier I 10.5 13.0 13.3 13.6 13.2 12.6 15.3 15.1 16.5 14.8 CAR (%) 17.2 *21.2 19.7 18.6 18.4 17.4 *20.68 19.1 19.6 17.1 Return on equity (%) 17.1 15.8 16.7 18.1 19.6 20.9 15.2 16.9 20.4 20.6 Earnings per share (Basic) 5.1 6.0 7.5 9.2 11.8 15.2 13.4 18.5 26.2 32.5 Dividend 35% 35% 45% 55% 65% 65% 85% 100% 100% 100% Market Capitalisation 4125 8423 11140 15072 22667 22624 12535 45824 58978 62607 GNPA (%) 1.9 3.1 3.5 4.7 3.4 2.7 3.8 4.0 6.8 4.6 NNPA (%) 0.7 2.0 2.1 3.2 2.2 1.7 2.2 2.2 4.7 3.1 NPA Recognition 6month 5month Branch Network 574 534 4month 534 3month 703 3month 873 3month 900 3month 1091 3month 1137 3month 1145 3month 1191 Capital Infusion Spurt in GNPA in FY20 and FY21 was due to Covid and in FY22 was due to new RBI norms on NPA 17 17#18Chola Enter a better life Disbursements (Cr) Disbursements -Disbursements (%) murugappa 40% * 63,940 BETTER 16% 14,659 23% 21% 23% 23% 22% 20% 23% 5% * 45,512 4,615 5% 6% 7% 15% 7% 6% 7% 7% 9,040 9,281 13% 15% 14% 13% 15% 15% 15% 2,425 13,329 4,581 2,121 1,454 50% * 20,015 47% 27% 6,537 21,542 * 22,383 * 14,623 5,044 * 17,559 1,575 5,033 3,787 1,587 64% 35,385 57% 58% 59% 60% 611 2,679 3,132 743 3,192 54% 55% 1,072 3,409 55% 27,509 2,255 2,036 2,246 11,301 8,562 11,731 8,502 10,446 12,354 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 FY23 Q1 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 VF LAP HL/AL New Businesses * Total Disbursements New business includes SME, CSEL and SBPL VF ■LAP HL New Business 18#19Chola Enter a better life Assets Under Management Business Assets under Management (Cr) -Business - Assets under Management (%) murugappa 40% * 1,14,796 11,337 42% * 1,24,246 40% * 1,33,794 BETTER 4% 15,214 10% 5% 10% 7% 13,327 7% 11% 8% 12,049 8% 8% 9% 10,801 9% * 95,468 22% 9,528 21% * * 81,925 87,668 2,937 22,866 4,765 24,721 6,907 26,891 20% 21% 20% 20% 7,278 6,454 5,938 17,675 19,997 18,843 68% 66% 71,065 75,396 79,640 62% 64% 61% 60% 55,376 57,606 61,285 Q1 FY23 Q1 FY24 Q2 Q2 FY23 Q3 Q3 Q1 Q1 FY24 FY23 FY24 FY23 FY24 Q2 FY23 Q2 Q3 Q3 FY24 FY23 FY24 VF ■LAP HL New Businesses * Total AUM VF ■LAP HL New Businesses New business includes SME, CSEL and SBPL 19#20Chola murugappa Enter a better life Chola - Disbursement & Portfolio Mix - YTD Dec23 [Disbursements (%) - Product wise CSEL 13% SBPL 1% SME 9% 3 Wheeler 1% Well diversified product segments 2 Wheeler 5% Portfolio (%) - Product wise BETT SBPL 3 Wheeler 1% 1% 2 Wheeler SME CSEL 3% 4% 7% HL Used Vehicles 9% 18% Used Vehicles 16% HL 7% LAP 15% Tractor 3% MINI LCV 1% LAP CAR 20% 7% MUV 5% CE LCV 3% HCV 9% 3% Tractor 4% MINI LCV 2% MUV 6% CE 4% HCV LCV 4% 12% CAR 7% 20 20#21Chola Enter a better life Profit after tax (Cr) 28% 566 726 35% murugappa Profitability and Net worth 30% 2365 Networth (Cr) BETTER 37% 22% 23% 1813 *15,030 168 *15,773 165 *12,316 164 *12,849 164 *13,530 164 *18,598 168 28% 18,430 876 14,862 15,609 762 12,152 12,684 13,366 684 563 Q1 Q1 Q2 Q2 FY23 FY24 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 Q3 FY23 FY24 ■Reserves and Surplus Equity Share Capital 21 24#22Chola Enter a better life Net Income Margin (%) Asset Ratios [Expenses Ratio (%) murugappa 3.1% 3.1% 3.0% 3.0% 3.0% 2.9% 8.0% 7.3% 7.6% 7.4% 7.6% 7.4% 7.7% 7.4% 2.8% 2.7% Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Loan Losses & Provisions (%) ROA-PBT (%) 1.5% 1.3% 1.2% 1.3% 1.2% 1.1% 1.0% 3.7% 3.8% 3.6% 3.3% 3.4% 3.3% 3.2% 3.3% 0.7% Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 Q2 Q2 FY23 FY24 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 22 22#23Chola Enter a better life Return on equity (%)- 18.9% Shareholders' Returns Ratios Earnings per share (*)- 20.6% 20.3% 19.9% 19.7% 17.8% 19.8% 27.6 19.1% 35.5 27.2 36.9 33.0 41.6 murugappa 29.3 38.0 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 YTD YTD FY23 FY24 Dec22Dec23 [P/E Ratio P/BV Ratio 32.1 33.0 30.3 33.1 6.2 6.3 63 5.7 5.7 22.4 26.9 21.9 24.7 4.7 4.4 4.1 4.4 Q1 Q1 FY23 FY24 Q2 FY23 FY24 Q2 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD Dec22Dec23 YTD 23 Note: Ratios are calculated based on the stock price at Rs.1260.25 as on 31st Dec 2023. Source: BSE#24Chola Enter a better life Profit and Loss Statement (As per IND AS) murugappa Cr Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 Growth % (YTD) Y-o-Y Disbursements 13,329 20,015 14,623 Closing Assets - Managed 86,703 1,22,755 91,841 21,542 17,559 1,33,775 1,03,789 22,383 27% 45,512 63,940 40% 1,41,143 36% 1,03,789 1,41,143 36% Income 2,771 4,134 3,038 4,572 3,375 5,019 49% 9,184 13,724 49% Finance Charges 1,131 2,007 1,340 2,205 1,543 2,439 58% 4,015 6,651 66% Net Income 1,640 2,127 1,697 2,367 1,832 2,580 41% 5,169 7,073 37% Expenses 580 787 661 946 752 1,064 41% 1,993 2,797 40% Net Credit Losses 299 372 278 400 159 359 126% 736 1,131 54% PBT 762 968 758 1,021 921 1,157 26% 2,441 3,145 29% Taxes 196 242 195 258 237 281 19% 627 781 24% PAT 566 726 563 762 684 876 28% 1,813 2,365 30% Asset Ratios Income 13.5% 14.2% 13.6% 14.3% 14.0% 14.5% 13.7% 14.3% Cost of Funds 5.5% 6.9% 6.0% 6.9% 6.4% 7.0% 6.0% 6.9% Net Income Margin 8.0% 7.3% 7.6% 7.4% 7.6% 7.4% 7.7% 7.4% Expense 2.8% 2.7% 3.0% 3.0% 3.1% 3.1% 3.0% 2.9% Losses & Provisions 1.5% 1.3% 1.2% 1.3% 0.7% 1.0% 1.1% 1.2% ROA-PBT 3.7% 3.3% 3.4% 3.2% 3.8% 3.3% 3.6% 3.3% ROA-PAT 2.8% 2.5% 2.5% 2.4% 2.8% 2.5% 2.7% 2.5% Gross - Stage 3 3,408 3,546 3,375 3,719 3,367 3,811 3,367 3,811 ECL Provisions - Stage 3 1,387 1,610 1,400 1,760 1,379 1,720 1,379 1,720 Coverage Ratio - Stage 3 40.7% 45.4% 41.5% 47.3% 41.0% 45.1% 41.0% 45.1% Cost to Net Income 35.3% 37.0% 38.9% 40.0% 41.1% 41.2% 38.6% 39.5% 24 24#25Chola Enter a better life ASSETS Balance Sheet (As per IND AS) Particulars murugappa Cr Dec22 Mar23 Dec23 Financial Assets 1,03,086 1,12,075 Cash and Bank balance 5,054 Derivative financial instruments 352 Receivables 163 2,961 273 191 1,41,703 4,187 244 391 Loans 93,546 1,04,748 1,32,532 Investments 3,709 Other Financial Assets 263 3,628 274 4,134 215 Non-Financial Assets 1,404 1,440 2,015 Current tax assets (Net) 237 267 469 Deferred tax assets (Net) 681 609 764 Property, Plant and Equipment 292 372 569 Capital work in progress 30 36 Intangible assets 40 51 42 Other Non-Financial Assets 124 106 171 TOTAL 1,04,490 1,13,516 1,43,718 EQUITY AND LIABILITIES Financial Liabilities 90,761 99,032 1,24,856 Derivative financial instruments Trade Payables - Others 183 65 Other Payables - Others 856 Borrowings 89,305 Other Financial Liabilities Non-Financial Liabilities Shareholder's fund TOTAL 352 199 13,530 134 123 1,065 97,356 354 187 14,296 167 27 1,144 1,23,103 416 264 18,598 1,04,490 1,13,516 1,43,718 25#26Chola Enter a better life Stagewise Assets & Provision Summary murugappa Cr Sep23 Dec23 Particulars Gross Assets Stage 1 INR Cr INR Cr 1,25,578 1,35,236 Sep23 % to GA 100.0% Dec23 % to GA 100.0% 1,17,818 1,27,282 93.82% 94.12% Stage 2 4,041 4,144 3.22% 3.06% Stage 3 3,719 3,811 2.96% 2.82% Provision 2,689 2,704 2.14% 2.00% Stage 1 516 555 0.44% 0.44% Stage 2 414 428 Stage 3 1,760 1,720 10.24% 47.32% 10.33% 45.15% Net Assets 1,22,889 1,32,532 97.86% 98.00% Stage 1 1,17,303 1,26,726 93.41% 93.71% Stage 2 3,627 3,716 2.89% 2.75% Stage 3 1,959 2,091 1.56% 1.55% 26#27Chola Enter a better life Stagewise ECL Summary - Dec 23 murugappa Particulars Asset Total Provn Total NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A) 1,27,032 544 1,26,488 93.93% 0.43% 93.53% Stage 1B (B) 250 12 238 0.18% 4.65% 0.18% Total Stage 1 (C) 1,27,282 555 1,26,726 94.12% 0.44% 93.71% Stage 2A (D) 2,905 275 2,630 2.15% 9.46% 1.95% Stage 2B (E) 1,239 153 1,085 0.92% 12.38% 0.80% Total Stage 2 (F) 4,144 428 3,716 3.06% 10.33% 2.75% Total Stage 3 (G) 3,811 1,720 2,091 2.82% 45.15% 1.55% Total (C + F + G ) 1,35,236 2,704 1,32,532 100.00% 2.00% 98.00% NPA as per RBI (incl Sec) (B + E + G) 5,299 1,885 3,414 3.92% 35.58% 2.52% NNPA%-RBI: Net NPA/(Asset - provisions for GNPA) 2.56% Addition of Stage 1B, Stage 2B and Stage 3 will be the GNPA% and NNPA % as per RBI norms with INDAS values. We carry additional provision of Rs.896 Cr under INDAS over IRAC Asset Classification: STAGE 1A STAGE 1B STAGE 2A STAGE 2B Represents assets (i) which had never touched NPA and (ii) which had been an NPA in the past but had been normalised and currently in the 0-30 days - Hence no more an NPA as per RBI norms Represents assets which had been an NPA in the past but yet to be fully normalised though it has moved to stage 1 currently - Hence an NPA as per current RBI norms Represents assets (i) which had never touched NPA and (ii) which had been an NPA in the past but had been normalised post that and now in 31-90 days DPD - Hence no more an NPA as per RBI norms Represents assets which had been an NPA in the past but yet to be fully normalised though it has moved to stage 2 currently - Hence an NPA as per current RBI norms STAGE 3 Represents assets which continues to be a NPA as on the closing date - Hence an NPA as per current RBI norms 27 22#28Chola Enter a better life Stage 3 Assets Product-wise murugappa Cr Asset Class Closing Asset Gross Stage 3 ECL Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Provision Net Net Dec23 VF 1,35,236 3,811 2.82% 81,492 2,678 3.29% 1,720 45.15% 2,091 1.55% 1,236 46.16% 1,442 1.77% LAP 26,501 804 3.03% 354 43.99% 450 1.70% HL 11,804 162 1.38% 56 34.77% 106 0.90% Others 15,439 167 1.08% 74 44.57% 92 0.60% Sep23 1,25,578 3,719 2.96% 1,760 47.32% 1,959 1.56% VF 77,169 2,563 3.32% 1,217 47.48% 1,346 1.74% LAP 24,270 817 3.37% 368 44.97% 450 1.85% HL 10,533 146 1.39% 53 36.44% 93 0.88% Others 13,607 193 1.42% 122 63.49% 70 0.52% As per revised RBI norms GNPA% & NNPA% as of Dec23 is at 3.92% and 2.56% respectively. 28#2912.00% Chola Enter a better life Chola Chola -Stage 3 Assets Trend murugappa 47.32% 50.00% 46.00% 45.40% 45.15% 45.00% 41.48% 10.00% 40.69% 40.96% 39.67% 38.80% 40.00% 8.00% 5.85% 35.00% 6.00% 4.37% 4.16% 2.27% 3.84% 3.51% 30.00% 4.00% 3.01% 3.06% 2.96% 2.82% 1.73% 1.69% 1.59% 1.44% 1.38% 1.39% 1.40% 2.00% 1.27% 25.00% 3.58% 2.64% 2.47% 2.25% 2.07% 1.62% 1.67% 1.56% 1.55% 0.00% 20.00% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Net Stg 3 Asset % ECL Provn Gross Stage 3 Asset % Provn Covg As per revised RBI norms GNPA% & NNPA% as of Dec23 is at 3.92% and 2.56% respectively. 29#30Ww-hab m ΠΕΡΙ Business Overview s.a 8.A O.P BERK " " " ON Ev 00.25 000,02 000,2 at eee.ee of ad eee Ar eee ex 000,0 eee 000,2€ of 000,0 000,25 000.0 000,01 ad 000,2 of of до eee.e eee.ec eee.ec 900 AC eee,PI (ansllob) smcont 225 nort 000,2 90A 19blo 10 08 er-ar AT-OT Sa 22 20 оа 8S S 24 ea-za σε -ar 0 08 08 ST от 08 22 ог OA ar 20 30 w OS or#31Vehicle Finance#32Chola Enter a better life Vehicle Finance: Q3 FY24 & YTD Dec23 Performance Disbursements Assets under management Loss and provisions • • murugappa Disbursements grew by 18% in Q3 FY24 to Rs. 12,354 Cr & by 29% in YTD Dec23 to Rs. 35,385 Cr as compared to Q3 FY23 & YTD Dec22 respectively. AUM has grown by 30% YoY. Loan losses at 1.3% in Q3 FY24 from 0.8% in Q3 FY23 & remained the same at 1.5% in YTD Dec23 as compared to YTD Dec22. Profit before tax PBT grew by 9% in Q3 FY24 to Rs.643 Cr & by 7% in YTD Dec23 to Rs.1,644 Cr as compared to Q3 FY23 & YTD Dec22 respectively. 32 32#33Chola Sector outlook Enter a better life Sector Outlook - Vehicle Finance business (1/3) * murugappa The Light commercial vehicle segment had a growth of 6% in Q3 FY'24 & 4% as of YTD Dec' 23 which is an all-time high sales for the period when compared to any previous year. The segment is expected to be muted in the coming quarter. Chola's Position We will continue our focus in this segment in line with rural demand and industry growth. BETTER LIVES The Small commercial vehicle segment had a de- growth of 2% in Q3 FY'24 & 10% de-growth as of YTD Dec 23. Similar trends are expected in coming months. ■ We will continue our focus with a cautious approach to financing, based on vehicle viability and earning capacity. Ba NATION The Heavy commercial vehicle segment had a growth of 4% in Q3 FY'24 & 8% as of YTD Dec'23. which is an all-time high sales for the period when compared to any previous year. This segment might witness flat demand in Q4 FY'24 with the upcoming general elections. Our exposure in this segment is 7% at a portfolio level. We will continue to keep a close watch on this segment and tread carefully due to inflationary concerns and higher fuel prices. 33#34Chola Sector outlook Enter a better life Sector Outlook - Vehicle Finance business (2/3) murugappa Chola's Position ◉ ☐ The Passenger vehicle (Car & MUV) segment had a growth of 8% in Q3 FY'24 and 7% as of YTD Dec'23 with an all-time high sales compared to any other year for the same period. This segment is witnessing healthy demand mostly contributed by MUVS. We will continue to focus in this segment in line with market trends especially retail customers. BETTER LIVES The Two-wheeler industry had a growth of 23% in Q3 The company intends to maintain its focus on two-wheeler financing with a clear eye for credit underwriting and portfolio quality. FY'24 & a growth of 10% as of YTD Dec'23. This BE tw segment is expected to grow further with stable rural cash flows. NATION Used vehicles industry has been growing steadily over the last few years and this trend will continue further with more organised players. We are one of the key players in this segment and will continue to maintain a cautious approach to financing with a razor-sharp focus on collections. Used vehicles contribute to nearly 27% of our portfolio. 34#35Chola Sector outlook Enter a better life - Vehicle Finance business (3/3) murugappa Sector Outlook The Construction Equipment segment had a growth of 36% in Q3 FY'24 and 27% as of YTD Dec'23. This is an all-time high number compared to any previous year. The growth may however moderate in the coming year considering a high base. Chola's Position Our exposure in this segment is around 7% at a portfolio level. We will continue to build a quality book from this segment. LIVES The Tractor industry had a de-growth of 5% in Q3 FY'24 & 4% as of YTD Dec 23 due to high base effect of previous year. The growth is expected to be muted for some time. We will keep a close watch on this segment considering various external factors like uneven rainfall, crop loss and irregular farm cash flows. NATION 35#36Chola Enter a better life Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales murugappa Chola 4 year Chola 4 year CAGR 13% Chola YoY growth rate -2% (in Units) CAGR (0%) Industry 4 year CAGR (5%) Chola YoY growth rate -25% (in Units) Industry 4 year CAGR 4% 170052 52862 Industry YoY growth rate -2% 59576 50490 Industry YoY growth 46679 45747 CAGR @ 5% rate 6% CAGR @ 10% 111846 99277 105589 92870 B Q3 FY'21 Q3 FY'22 Q3 FY'23 Q3 FY'24 Q3 FY'28 (E) Q3 FY'21 Q3 FY'22 Q3 FY'23 Q3 FY'24 Q3 FY'28 (E) Replacement demand, last-mile transport requirements and positive macroeconomic environment. Stronger demand from consumption driven sectors and E-commerce based companies. • Demand for Pickups to increase in the long term due to higher flexibility in usage over sub one tonne vehicles. • Bus Sales to be supported by growing urban population, demand from schools/ corporates and increased inter-city travel. Source: FY21 to FY28 numbers are from SIAM & CRISIL 36#37Chola Enter a better life Auto Industry Outlook Trend in Domestic HCV Sales murugappa Trend in Domestic Car & MUV Sales Chola 4 year CAGR 42% Chola YoY growth rate -5% (in Units) Chola 4 year CAGR 26% Chola YoY growth rate 18% (in Units) Industry 4 year CAGR 23% 117435 Industry YoY growth rate 4% CAGR @ 10% 72918 75808 Industry 4 year CAGR 4% Industry YoY growth 1508855 rate 8% CAGR @ 10% 51137 897983 936880 1014125 40765 761336 B Q3 FY'21 Q3 FY'22 Q3 FY'23 Q3 FY'24 Q3 FY'28 (E) Q3 FY'21 Q3 FY'22 Q3 FY'23 Q3 FY'24 Q3 FY'28 (E) Improved industrial activity, steady agricultural output and the government's focus on infrastructure will aid growth. Pick up in construction and mining activities over the long term would drive demand. Higher disposable income and introduction of newer models to aid long term demand. Increase in rural demand and growing penetration in tier III, tier IV towns will back stable growth. Source: FY21 to FY28 numbers are from SIAM & CRISIL 37#38High RISK Low Chola Enter a better life Vehicle Finance-Business Model & Positioning CV Industry Low Low Chola Position PV murugappa Industry Chola Position Low Principal Operator > 50 Vehicles Large Operators 26- 50 vehicles HCV Medium Operators 10-25-HCV & LCV vehicles SRTOS-HCV & LCV First Time Users & Small Ticket Operators, older vehicles HCV, LCV & SCV HCV : Heavy commercial vehicle, LCV: Light commercial vehicle, SCV Small commercial vehicle, SRTO: Small Road Transport Operators ~65% of disbursements are to micro & small enterprises and agri -based customer segment Chola positioning- Middle of the pyramid through New CVs, Used CVs High Top of the Bottom of the pyramid through SCV & older CVs Shubh -Returns BETTER Salaried BETT High Self Employed with Financials Taxi and Tour Operator Agri, Asset & Commercial, Used PV: Passenger Vehicle, MUV :Multi Utility Vehicle • • 66% of disbursements are to Chola Existing, Agri & Commercial usage customers ~ 34% disbursements are to Self Employed with financials Chola positioning- Middle of the pyramid is into Agri, Asset & Commercial High 38 Returns#39High -RISK- Low Chola Enter a better life Vehicle Finance-Business Model & Positioning Tractor Industry Low Low Chola Position Large Farmer Captive Users / Prior Vehicles Medium Farmers Small & Marginal Farmers First Time Buyers First Time Users / Tenant Farmer Tractors only. In exceptional cases considering implements like power tillers & combine harvesters ~65% of disbursements are to agri -based customer segment Application - Agri usage Commercial usage Agri and Commercial usage New & Used Returns CE BETTER LIVES BETT Super Strategic Strategic Customer Captive Users/Prior Vehicles Medium Retail operator Small Retail Operator First Time Buyers First Time Users High High Focus on Backhoe Loaders, Excavators and Cranes ~69% of disbursements are to retail customer segment Application - Captive Hiring New & Used murugappa Industry Low Chola Position High 39 Returns#40Chola Enter a better life Vehicle Finance - Disbursement/Portfolio Mix - YTD Dec23 murugappa Well diversified across geography -Disbursements - State wise Dadra and Nagar Haveli -Portfolio - State wise & Daman and MP Diu AP Karnataka 0.05% Maharashtra Gujarat Dadar and Nagar Haveli & Daman and Diu BETTER MP Maharashtra 0.04% AP Karnataka 5% Kerala 5% 7% Goa 10% Puducherry Gujarat WB 4% 4% 0.2% Telangana Goa 6% 5% 7% Kerala 10% 4% 0.2% 4% Puducherry Telangana Arunachal 0.2% Pradesh 4% WEST SOUTH 20% 31% 9% 5% WB 0.3% WEST 21% SOUTH Odisha 0.03% EAST TN 1% Andaman & 4% Arunachal Pradesh Odisha 4% 28% 8% TN 0.03% 4% EAST 29% NORTH NORTH 3% 1% Nicobar Island 0.01% 3% 21% ,1% Andaman & 0.01% 29% 22% 3% Delhi 0.4% Nicobar Island Jharkhand 0.5% 3% 0.5% 1% 0.4%1% Haryana Delhi HP Tripura 7% 7% 0.1% 0.1% Haryana HP Jharkhand 7% 1% 7% 0.1% J&K Chattisgarh Tripura 0.1% 5% 5% 7% 7% 4% 1% Sikkim J&K Punjab 4% 1% Punjab Chattisgarh. Bihar Rajasthan Sikkim Rajasthan Chandigarh Bihar Chandigarh Assam, Meghalaya, Uttarakhand UP Mizoram Assam, Meghalaya, Mizoram UP Uttarakhand 40 40#41Chola Enter a better life Vehicle Finance - Disbursement/Portfolio Mix - Q3 FY24 murugappa Well diversified product segments [Disbursements (%) - Product wise MUV 10% CAR 12% LCV 15% MINI LCV Tractor 2% 6% 2594 HCV 3 Wheeler CE 5% 1% 9 6% Portfolio (%) - Product wise BETT HCV 7% CE 3 Wheeler 1% 7% 2 Wheeler LCV 11% 20% MUV 10% Used Vehicles 32% CAR 12% Tractor MINI LCV 7% 3% 2 Wheeler 6% Used Vehicles 27% 41#42Medium Yield Low Yield High Yield لها Chola Enter a better life Vehicle Finance - Disbursement Mix - Quarter-wise Disbursement (Cr) - Product wise -Disbursement (%) - Product wise murugappa * 12,190 12,354 * 11,731 7% 7% 6% 5% 6% * 11,301 738 5% 5% 5% 882 5% 627 613 9% * 10,446 653 1,053 640 584 17% 16% 15% 687 1,853 17% 18% 560 1,860 2,211 1,936 10% 10% 1,245 9% 9% 1,816 1,134 9% 1,077 1,062 12% 12% 1,448 11% 12% 925 1,369 11% 3% 2% 1,312 1,325 263 3% 2% 1,158 293 5% 6% 755 3% 7% 340 271 616 7% 5% 347 639 770 772 3,957 33% 32% 3,930 30% 32% 3,632 3,579 30% 3,144 1,024 97 1,113 148 1,312 9% 8% 9% 9% 11% Q1 FY24 Q2 FY24 171 Q3 FY24 1% 1% 1% 1% 1% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 2 Wheeler Used Vehicles Tractor CAR MUV LCV 3 Wheeler ■CAR 2 Wheeler ■MUV Used Vehicles Tractor MINI LCV LCV HCV CE 965 71 Q3 FY23 ■3 Wheeler MINI LCV 956 90 Q4 FY23 42 42#43Medium Yield Low Yield High Yield Chola Enter a better life Vehicle Finance - Portfolio Mix - Quarter-wise -Portfolio (Cr) - Product wise -Portfolio (%) - Product wise لها murugappa €79,640 7% 7% 7% 7% 7% * 75,396 5,201 * 71,065 7% 7% 7% 7% 7% 4,906 * 66,938 5,221 4,721 5,058 * 61,285 4,487 4,878 21% 21% 21% 21% 20% 15,872 3,990 4,742 15,583 4,126 14,814 8% 14,032 9% 9% 9% 10% 7,604 12,810 6,907 6,295 12% 12% 12% 12% 12% 5,720 9,769 5,090 9,077 4% 8,444 4% 3% 3% 3% 7,800 2,428 7,121 2,420 2,387 9% 5,995 8% 8% 8% 7% 2,373 5,856 2,281 5,775 5,630 5,513 16,494 17,833 18,954 20,252 21,513 27% 27% 27% 27% 27% 3,469 391 3,895 426 4,334 463 4,788 548 Q3 FY23 3 Wheeler Q4 FY23 Q1 FY24 Q2 FY24 5,390 646 Q3 FY24 6% 6% 6% 6% 6% 1% 1% 1% 1% 1% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 2 Wheeler Used Vehicles Tractor MINI LCV CAR MUV LCV HCV CE *Total 3 Wheeler CAR ■2 Wheeler ■MUV Used Vehicles Tractor MINI LCV LCV HCV CE 43 13#44Chola Enter a better life Vehicle Finance - Disbursements and Asset Under Management -Disbursements (Cr) 29% 35,385 Assets under management (Cr). BETTER 28% *71,065 31% murugappa *75,396 97 30% * 79,640 63 32% 8,562 11,301 27,509 *55,376 547 146 *57,606 417 * 61,285 305 38% 35% 11,731 70,918 12,354 75,299 79,577 10,446 8,502 54,829 57,189 |60,980 Q1 Q1 Q2 Q2 FY23 FY24 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 Q2 Q2 Q3 Q3 FY23 FY24 FY23 FY24 FY23 FY24 On Book Assignment * Total AUM 44#45Chola Enter a better life -Income (Cr) Vehicle Finance - Income and Profit before tax 24% 26% 27% 8,130 6,403 -Profit before tax (Cr)- BETTER VES BETTER 30% 2,498 2,690 2,943 4% 9% 7% 643 2,013 2,133 2,257 590 480 501 468 499 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 YTD YTD Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 FY23 FY24 Dec22Dec23 murugappa 7% 1,644 1,538 YTD YTD Dec22Dec23 45#46Chola Enter a better life Net Income Margin (%) 8.9% 7.2% 8.5% Vehicle Finance - Asset Ratios Expense Ratio (%) murugappa 3.3% 3.3% 3.4% 3.3% 3.2% 8.5% 3.1% 3.1% 8.1% 7.8% 2.8% 7.6% 7.5% Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 FY23 FY24 Q3 YTD YTD Dec22 Dec23 Loan Losses & Provisions (%) ROA - PBT (%)⋅ 2.1% 1.5% 1.8% 1.7% 0.8% 1.5% 1.5% 1.3% 3.6% 3.3% 2.9% 2.7% 3.9% 3.6% 3.3% 3.0% Q1 Q1 Q2 FY23 FY24 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 Dec22 Dec23 FY23 FY24 FY23 FY24 FY23 FY24 YTD YTD Dec22 Dec23 46#47murugappa Chola Enter a better life Profit and Loss Statement - Vehicle Finance (Managed) Cr Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 (YTD) Y-o-Y Disbursements 8,562 11,301 8,502 Closing Assets - Managed 55,376 71,065 57,606 11,731 10,446 75,396 61,285 12,354 18% 27,509 35,385 29% 79,640 30% 61,285 79,640 30% Income 2,013 2,498 2,133 2,690 2,257 2,943 30% 6,403 8,130 27% Finance Charges 811 1,258 928 1,300 1,036 1,423 37% 2,775 3,981 43% Net Income 1,202 1,239 1,205 1,390 1,221 1,520 25% 3,627 4,149 14% Expenses 442 489 477 579 512 627 22% 1,431 1,695 18% Net Credit Losses 280 250 260 311 118 249 111% 658 810 23% PBT 480 501 468 499 590 643 9% 1,538 1,644 7% Asset Ratios Income 14.9% 14.6% 15.0% 14.6% 15.1% 15.1% 15.0% 14.8% Cost of Funds 6.0% 7.3% 6.5% 7.1% 6.9% 7.3% 6.5% 7.2% Net Income Margin 8.9% 7.2% 8.5% 7.6% 8.1% 7.8% 8.5% 7.5% Expense 3.3% 2.8% 3.3% 3.1% 3.4% 3.2% 3.3% 3.1% Losses & Provisions 2.1% 1.5% 1.8% 1.7% 0.8% 1.3% 1.5% 1.5% ROA-PBT 3.6% 2.9% 3.3% 2.7% 3.9% 3.3% 3.6% 3.0% Cost to Net Income 36.8% 39.4% 39.6% 41.7% 42.0% 41.3% 39.5% 40.9% 47#48murugappa Chola Enter a better life Profit and Loss Statement - Vehicle Finance (On Book) Cr Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 (YTD) Y-o-Y Disbursements 8,562 11,301 8,502 11,731 10,446 12,354 Closing Assets (On B/S) 54,829 70,918 57,189 75,299 60,980 79,577 Income 1,992 2,491 2,116 18% 27,509 35,385 29% 30% 60,980 79,577 30% 2,684 2,242 2,939 31% 6,350 8,114 28% Finance Charges 798 1,254 889 1,297 1,058 1,421 34% 2,746 3,972 45% Net Income 1,194 1,237 1,227 1,387 1,184 1,518 28% 3,605 4,142 15% Expenses 442 489 477 579 512 627 22% 1,431 1,695 18% Net Credit Losses 280 250 260 311 118 249 111% 658 810 23% PBT 472 499 490 496 554 642 16% 1,515 1,636 8% Asset Ratios Income 14.9% 14.6% 15.0% 14.6% 15.1% 15.1% 15.0% 14.8% Cost of Funds 6.0% 7.3% 6.3% 7.1% 7.1% 7.3% 6.5% 7.2% Net Income Margin 8.9% 7.2% 8.7% 7.5% 7.9% 7.8% 8.5% 7.5% Expense 3.3% 2.9% 3.4% 3.2% 3.4% 3.2% 3.4% 3.1% Losses & Provisions 2.1% 1.5% 1.8% 1.7% 0.8% 1.3% 1.6% 1.5% ROA-PBT 3.5% 2.9% 3.5% 2.7% 3.7% 3.3% 3.6% 3.0% Cost to Net Income 37.1% 39.5% 38.8% 41.8% 43.3% 41.3% 39.7% 40.9% 40 48#49Loan Against Property#50Chola Enter a better life murugappa Loan Against Property - Q3 FY24 & YTD Dec23 Performance Disbursements Asset under management • Disbursements grew by 51% in Q3 FY24 to Rs. 3,409 Cr & by 42% in YTD Dec23 to Rs. 9,281 Cr as compared to Q3 FY23 & YTD Dec22 respectively. AUM has grown by 34% YoY. Loss and provisions Loan losses dropped to -0.04% in Q3 FY24 from 0.1% in Q3 FY23 & to -0.1% in YTD Dec23 from 0.02% in YTD Dec22. Profit before tax PBT grew by 32% in Q3 FY24 to Rs.245 Cr & by 25% in YTD Dec23 to Rs.703 Cr as compared to Q3 FY23 & YTD Dec22 respectively. 50 50#51Chola Enter a better life Loan Against Property: Industry outlook Sector Outlook CRISIL estimates the LAP segment to experience growth at a rate of 13-15% for FY24. Similarly, strong growth is anticipated in fiscal 2025, with NBFCs likely to grow at a rate of 15-17% • Chola's Position murugappa Chola's LAP team is currently focusing on increasing its market share backed by consistent disbursement growth and collections performance. Our focus continues to be on retail customers especially in smaller towns and rural areas B con Ind-Ra believes NBFCs will have to judiciously manage is capitalizing on • LAP team Chola's pan India geographical presence by going wide in tier 3 and tier 4 markets to improve margins, while continuing to hold market leadership position in tier 1 and tier 2 markets ed marl margins in FY24, given the elevated borrowing cost and limited flexibility in passing over rate hikes in the secured lending segments due to the competition from banks and factoring in borrowers' repayment ability ATION MSME book asset quality of NBFCs is expected to improve in this fiscal, with continued pickup in economic activity, better collection efficiency, and faster credit growth. Chola LAP team has strengthened collection & legal process and the asset quality has shown steady improvement. The stage 3 book has come down with consistent improvement in collection efficiency Source: https://www.indiaratings.co.in/pressrelease/66343, CRISIL - NBFC Research Report - Oct 2023 51#52Chola Enter a better life murugappa Loan Against Property - Disbursements and Asset Under Management -Disbursements (Cr)- Assets under Management (*Cr) 32% 42% 51% 3,192 2,679 2,246 2,255 2,036 42% 9,281 29% 6,537 *17,675 1,418 3,409 16,257 31% * 22,866 1,030 * 18,843 21,836 1,318 34% * 24,721 950 * 19,997 1,205 23,771 18,792 17,525 * 26,891 881 26,010 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Dec22 Dec23 On Book Assigned * Total AUM 52 52#53Chola Enter a better life Loan Against Property - Income and Profit before tax -Income (Cr)- -Profit before tax (Cr)- 40% 704 40% 757 39% 831 503 540 597 40% 2,291 BETTER 1,640 VES BETTER 12% 32% 32% 224 234 200 245 178 186 murugappa 25% 564 703 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 53#54Chola Enter a better life Net Income Margin (%) Loan Against Property - Asset Ratios Expenses Ratio (%) 5.7% 5.6% 5.6% 5.4% 5.3% 5.4% 5.5% 5.5% 1.4% 1.4% 1.2% 1.8% 1.5% 1.9% murugappa 1.4% 1.7% Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 -Loan Losses & Provisions (%) -ROA - PBT (%) Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 4.7% NAT 4.0% 4.1% 3.9% 3.9% 3.8% 3.8% 3.9% -0.1% -0.1% -0.01% -0.1% 0.1% 0.0% 0.02% -0.1% Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 54 54#55Chola Enter a better life murugappa Profit and Loss Statement - Loan Against Property (Managed) Cr Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 (YTD) Y-o-Y Disbursements 2,036 2,679 2,246 3,192 2,255 3,409 51% 6,537 9,281 42% Closing Assets - Managed 17,675 22,866 18,843 24,721 19,997 26,891 34% 19,997 26,891 34% Income 503 704 540 757 597 831 39% 1,640 2,291 40% Finance Charges 257 408 298 422 331 468 42% 886 1,298 47% Net Income 246 296 242 335 266 362 36% 754 993 32% Expenses 49 80 65 106 74 120 64% 188 306 63% Net Credit Losses -4 -7 -1 -6 6 -3 -146% 2 -16 -825% PBT 200 224 178 234 186 245 32% 564 703 25% Asset Ratios Income 11.7% 12.7% 11.7% 12.7% 12.2% 12.8% 11.9% 12.7% Cost of Funds 6.0% 7.4% 6.5% 7.1% 6.8% 7.2% 6.4% 7.2% Net Income Margin 5.7% 5.4% 5.3% 5.6% 5.4% 5.6% 5.5% 5.5% Expense 1.2% 1.4% 1.4% 1.8% 1.5% 1.9% 1.4% 1.7% Losses & Provisions -0.1% -0.1% 0.0% -0.1% 0.1% -0.04% 0.02% -0.1% ROA-PBT 4.7% 4.0% 3.9% 3.9% 3.8% 3.8% 4.1% 3.9% Cost to Net Income 20.1% 26.9% 26.7% 31.8% 27.7% 33.2% 24.9% 30.8% 55#56Chola Enter a better life Profit and Loss Statement - Loan Against Property murugappa (On Book) Cr Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 (YTD) Y-o-Y Disbursements 2,036 2,679 2,246 Closing Assets (On B/S) 16,257 21,836 17,525 23,771 3,192 2,255 3,409 18,792 26,010 51% 6,537 9,281 42% 38% 18,792 26,010 38% Income 453 672 497 715 575 793 38% 1,524 2,180 43% Finance Charges 227 384 249 399 325 447 37% 801 1,230 53% Net Income 226 288 248 317 249 346 39% 723 950 31% Expenses 49 80 65 106 74 120 64% 188 306 63% Net Credit Losses -4 -7 -1 -6 6 -3 -146% 2 -16 -825% PBT 180 215 184 216 169 228 35% 533 659 24% Asset Ratios Income 11.5% 12.8% 11.7% 12.5% 12.6% 12.6% 11.9% 12.6% Cost of Funds 5.8% 7.3% 5.8% 7.0% 7.1% 7.1% 6.3% 7.1% Net Income Margin 5.8% 5.5% 5.8% 5.5% 5.4% 5.5% 5.7% 5.5% Expense 1.3% 1.5% 1.5% 1.9% 1.6% 1.9% 1.5% 1.8% Losses & Provisions -0.1% -0.1% -0.01% -0.1% 0.1% -0.05% 0.02% -0.1% ROA-PBT Cost to Net Income 4.6% 4.1% 4.3% 21.9% 27.7% 26.1% 3.8% 3.7% 33.6% 29.5% 34.8% 3.6% 4.2% 3.8% 25.9% 32.3% 56#57Home Loans#58Chola Enter a better life Home Loans - Q3 FY24 & YTD Dec23 Performance Disbursements Asset under management Loss and provisions Profit before tax • Note: Home Loans includes Affordable LAP murugappa Disbursements grew by 48% in Q3 FY24 to Rs. 1,587 Cr & by 90% in YTD Dec23 to Rs. 4,615 Cr as compared to Q3 FY23 & YTD Dec22 respectively. AUM have grown by 66% YoY. Loan losses dropped to 0.4% in Q3 FY24 from 0.9% in Q3 FY23 & to 0.2% in YTD Dec23 from 0.6% in YTD Dec22. PBT grew by 112% in Q3 FY24 to Rs.137 Cr & by 43% in YTD Dec23 to Rs.319 Cr as compared to Q3 FY23 & YTD Dec22 respectively. 58#59• Chola Enter a better life Home Loans - Industry outlook murugappa Sector Outlook The overall growth in HFCS is expected to remain at 14-16% in FY24 GNPAs of AHFCS are expected to stabilize over the next year. Some stress from restructured portfolio to continue. Chola's Position Chola continues to consolidate its position across branches pan-India while also targeting expansion in newer underpenetrated geographies newer Chola cont Chola continues to pursue legal recovery for the higher bucket portfolio & is also continuously improving collections efficiencies through advanced analytics & digital-led collections Bimp Given current macro economic conditions cost of Chola continues to pursue profitable growth through funds is expected to remain at elevated levels. Growth related costs are also expected to drive operating expenses for the AHFCs. low-cost expansion, process optimizations, & elimination of inefficiencies across all functions to ensure margins are sustained Source: ICRA research report 59#60Chola Enter a better life Home Loans - Disbursements and Asset Under Management -Disbursements (Cr)- Assets under Management (*Cr) 138% 611 1,454 112% 743 1,575 48% 1,072 1,587 90% 4,615 £60% 60% *5,938 2,425 500 5,438 TER *9,528 413 S R 67% *6,454 478 *10,801 392 10,409 9,115 5,976 66% *7,278 456 6,822 murugappa *12,049 374 11,674 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 YTD YTD Q1 Q1 FY23 FY24 Dec 22 Dec 23 FY23 FY24 Q2 FY23 Q2 Q3 Q3 FY24 FY23 FY24 ■ On Book Assigned * Total AUM 60 60#61Chola Enter a better life -Income (Cr)- Home Loans - Income and Profit before tax -Profit before tax (Cr)- 68% 204 344 79% 398 89% 481 222 254 80% 680 1,223 BETTER VES BETTER 3% 30% 85 88 87 74 murugappa 43% 112% 223 96 96 64 137 319 Q1 Q1 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 YTD YTD Q1 Q1 FY23 FY24 Dec22 Dec23 FY23 FY24 Q2 Q2 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 61#62Chola Enter a better life Net Income Margin (%) Home Loans - Asset Ratios Expenses Ratio (%) 9.2% 3.9% 8.4% 8.4% 8.2% 7.7% 7.9% 8.0% 8.0% 2.7% 2.1% 4.0% 3.4% murugappa 4.1% 4.0% 2.7% Q1 FY23 Q1 FY24 Q2 Q2 FY23 FY24 Q3 FY23 FY24 Q3 YTD YTD Dec22 Dec23 Q1 FY23 FY24 Q1 Q2 FY23 Q2 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Loan Losses & Provisions (%) 0.9% -ROA - PBT (%) 5.9% 4.7% 0.6% 3.9% 0.5% 0.4% 0.4% 0.4% 0.2% 3.7% 3.7% 4.8% 4.7% 4.2% -0.1% Q1 Q1 Q2 Q2 FY23 FY24 FY23 FY24 Q3 Q3 FY23 FY24 YTD YTD Dec22 Dec23 Q1 FY23 FY24 Q1 Q2 Q2 Q3 Q3 FY23 FY24 FY23 FY24 YTD YTD Dec22 Dec23 62#63Chola Enter a better life murugappa Profit and Loss Statement - Home Loans (Managed) Cr Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Growth % Q3-0-Q3 YTD Dec22 YTD Dec23 (YTD) Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 48% 2,425 4,615 90% Closing Assets - Managed 5,938 9,528 6,454 10,801 7,278 12,049 66% 7,278 12,049 66% Income 204 344 222 398 254 481 89% 680 1,223 80% Finance Charges 84 171 99 190 116 216 86% 299 576 93% Net Income 120 173 123 208 139 265 91% 382 646 69% Expenses 30 88 42 102 58 118 103% 130 308 136% Net Credit Losses 5 -2 7 10 16 10 -34% 29 19 -34% PBT 85 87 74 96 64 137 112% 223 319 43% Asset Ratios Income 14.2% 15.4% 14.2% 15.6% 14.7% 16.7% 14.3% 15.9% Cost of Funds 5.9% 7.7% 6.3% 7.4% 6.7% 7.5% 6.3% 7.5% Net Income Margin 8.4% 7.7% 7.9% 8.2% 8.0% 9.2% 8.0% 8.4% Expense 2.1% 3.9% 2.7% 4.0% 3.4% 4.1% 2.7% 4.0% Losses & Provisions 0.4% -0.1% 0.5% 0.4% 0.9% 0.4% 0.6% 0.2% ROA-PBT 5.9% 3.9% 4.7% 3.7% 3.7% 4.8% 4.7% 4.2% Cost to Net Income 25.2% 50.8% 34.1% 49.1% 42.1% 44.5% 34.2% 47.7% 63#64Chola Enter a better life Profit and Loss Statement - Home Loans (On Book) murugappa Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-0-Q3 Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 48% 2,425 4,615 90% Closing Assets (On B/S) 5,438 9,115 5,976 10,409 6,822 11,674 71% 6,822 11,674 71% Income 185 331 205 383 239 465 94% 630 1,180 87% Finance Charges 74 162 85 181 110 207 88% 270 550 104% Net Income 111 169 120 202 129 258 100% 360 630 75% Expenses 30 88 42 102 58 118 103% 130 308 136% Net Credit Losses 5 (2) 7 10 16 10 -34% 29 19 -34% PBT 75 83 71 90 55 130 135% 201 303 51% Asset Ratios Income 14.1% 15.6% 14.3% 15.6% 14.8% 16.7% 14.3% 16.0% Cost of Funds 5.7% 7.6% 5.9% 7.4% 6.8% 7.4% 6.1% 7.4% Net Income Margin 8.5% 7.9% 8.3% 8.3% 8.0% 9.3% 8.2% 8.5% Expense 2.3% 4.1% 2.9% 4.2% 3.6% 4.2% 3.0% 4.2% Losses & Provisions 0.4% -0.1% 0.5% 0.4% 1.0% 0.4% 0.7% 0.3% ROA-PBT 5.7% 3.9% 4.9% 3.7% 3.4% 4.7% 4.6% 4.1% Cost to Net Income 27.4% 51.9% 34.8% 50.5% 45.1% 45.8% 36.2% 48.9% 64 ==#65Funding Profile 6#66Chola Enter a better life Diversified Borrowings Profile (I/II) murugappa Borrowing mix by instrument type * 89,305 * * 97,356 * 1,08,140 6% 4% 6% 3% 3% 3% * 1,19,470 * 1,23,103 7% 5% 3% 3% 9% 10% 15% 17% 4% 4% 16% 4% 4% 3% 2% 2% 4% 5% 5% 18% 16% 15% 14% 15% 52% 54% 49% 49% 48% 4% 5% Q3 FY23 Q4 FY23 Tier II Capital Bank Term loans Debentures FII FCNR (Cr) 5% Q1 FY24 4% Q2 FY24 Securitisation ■CC/WCDL Commercial Papers / ICD 4% Q3 FY24 * Total Borrowings 99 66#67Chola Enter a better life Diversified Borrowings Profile (I/II) Borrowing mix by investor type murugappa * 89,305 9% 3% 1%3% * 97,356 10% 1% 3% 3% * 1,08,140 15% 1% 3% 3% E * 1,19,470 16% 0.4% 3% 5% * 1,23,103 17% 3% 1% 2% 64% 65% 61% 60% 59% 6% 1% 1% 6% 6% 6% 6% 10% 8% 7% 8% 8% 3% Q3 FY23 3% 3% 3% 3% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 (Cr) Insurance Company Individuals & HUF Securitisation Banks * Total Borrowings Trusts ■Mutual Fund BANK OVERSEAS FII, FPI, NRI & NRN Corporates 67#68Chola Enter a better life ALM Statement as of 31st Dec 2023 (As per IND AS) murugappa (Cr) Particulars 1 m >1 to 2m ALM snapshot as on 31st >2 to 3m >3 to 6m Dec 2023 >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 3,445.08 579.16 1,647.45 1.95 37.87 1,489.55 Advances 5,681.00 3,977.23 4,898.02 11,998.00 19,486.73 53,876.96 532.21 16,461.65 8.47 7,741.73 21,389.33 1,37,768.93 Trade Receivable & Others 141.82 249.85 Total Inflows (A) 9,267.90 4,806.24 6,550.04 Cumulative Total Inflows (B) Borrowin Repayment-Bank & Others Borrowin Repayment-Market 131.17 12,131.12 9,267.90 14,074.14 20,624.18 32,755.30 4,451.38 2,968.03 3,995.66 7,136.41 1,982.68 1,715.63 2,387.37 3,624.64 4.57 10.25 98.15 619.96 19,534.86 55,464.66 17,613.81 52,290.16 1,07,754.81 1,25,368.63 14,636.45 45,533.93 16,084.19 4,011.99 9,495.66 4,113.71 2,188.15 3,443.93 23,585.96 1,48,954.59 1,48,954.59 319.31 95,125.35 3,395.42 30,727.10 Capital Reserves and Surplus 18,848.54 18,848.54 Other Outflows Total Outflows (C) Cumulative Total Outflows (D) 9,250.92 2,816.86 104.09 42.44 416.21 9,250.92 4,787.75 6,425.47 11,177.25 14,038.67 20,464.14 31,641.39 313.02 243.56 18,961.45 55,273.15 20,455.09 50,602.84 1,05,875.99 257.19 60.23 4,253.60 22,623.50 1,48,954.59 1,26,331.08 1,48,954.59 E. GAP (A-C) 16.98 18.49 124.57 953.87 573.40 191.51 (2,841.28) 962.46 F.Cumulative GAP (B-D) 16.98 35.47 160.04 1,113.91 1,687.31 1,878.82 (962.46) (0.00) Cumulative GAP as % (F/D) 0.18% 0.25% 0.78% 3.52% 3.33% 1.77% -0.76% 0.00% 68#69Chola Enter a better life CAR and Credit Rating murugappa Tier I Tier II Capital Adequacy Ratio (CAR) - As per RBI guideline 19.62 19.37 17.13 17.44 16.62 3.13 3.82 2.35 2.30 1.96 16.49 14.78 15.14 14.66 15.55 FY22 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% India ratings Loan type Care ICRA Crisil ST CP/WCDL Credit Rating LT NCD/CC IND AA+ (ind) stable CARE AA+/Stable NCD (Public Issue) IND AA+/ Stable Tier II SD IND AA+/ Stable CARE AA+/Stable [ICRA] A1+ [ICRA] AA+/Positive [ICRA] AA+/Positive [ICRA] AA+/Positive [CRISIL] A1+ Tier I PDI IND AA/ Stable CARE AA /Stable [ICRA] AA/Positive Note: ICRA has reaffirmed the Ratings and Outlook upgraded to AA+ (Positive) from AA+ (Stable) 69#70Consolidated Financials#71Chola Enter a better life Consolidated Profit & Loss murugappa (Cr) Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-0-Q3 Y-o-Y Income 2,796 4,171 3,067 4,695 3,408 5,055 48% 9,271 13,921 50% Expenses 2,032 3,215 2,305 3,630 2,482 3,898 57% 6,819 10,743 58% PBT 764 956 762 1,065 926 1,156 25% 2,452 3,177 30% PAT 562 710 563 773 685 872 27% 1,810 2,355 30% Note: Above financials includes Chola Sec, Chola Home Finance, Paytail and Payswiff. 71 14#72ENVIROMENT Environmental Social Governance GOVERNANCE ESG#73Chola Enter a better life Consecutively awarded for last 4 years........ FTSE Russell CERTIFICATE OF MEMBERSHIP This is to certify that Cholamandalam Investment and Finance is a constituent company in the FTSE4Good Index Series FTSE4Good June 2023 The FTSE 4Good Index Series is designed to identity companies that demonstrate strong environmental, social and governance practices measured against globally recognised standards 920 murugappa FY21 BE • FTSE Russell - Included in FTSE4 Good Index series FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. BET FY 23 { • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. • CRISIL ESG rating - STRONG FY 24 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2023. Note: For more on ESG refer our website - https://www.cholamandalam.com/esg-presentation.aspx 73#74Risk Management#75Chola Enter a better life Risk Governance Structure ■ Oversee the entire risk management process Board of Directors murugappa Risk Management Committee Executive Director Chief Risk Officer Risk Champions of Businesses/functions BET ■ Formed in 2007-08 ■ Meet four times in a year ■ Periodic review of framework, process, key risk movement and other initiatives ■ Review the risk management process BETTE Risk Management Division ■ Establish framework, tools & techniques ■ Create risk awareness ■ Works with Business/Functional head and Risk Champions of respective functions to identify, assess, mitigate, monitor and report key risks 75#76Chola Enter a better life Key Functions of Risk Management Division murugappa • Identify key risks in each function/business ccurrence and the • . Assess the risks in terms of probability of occurrence and their impact Identify mitigation/ risk controls put in place by respective process champions Identify key risk indicators to measure and monitor residual risk. Breach in key risks against thresholds are highlighted to risk champions to take appropriate mitigation strategies monitors the • For each function/business, the Risk Index monitors the level and direction of risk. Composite Risk Index tracks the level and direction of risks at an enterprise level. 76 76#77Chola • Enter a better life ERM as Value Centre in Business Processes ERM works with business teams on the overall customer life cycle management Active portfolio . Identifying segments & channels risk profiles management and prioritization for collection efforts murugappa Underwriting models to optimally onboard risk and price appropriately BETTER ON Customer retention strategies ERM team actively engages with the product teams for assessing risk reward trade-offs and other initiatives 77#78• • • . Chola Enter a better life ERM as Value Centre in Corporate Processes murugappa Periodic engagement with internal audit team to incorporate key observations on process failures identified by IA team which will be considered as part of risk review process. ERM also gives risk-based inputs to internal audit team to plan and prioritize their audits VES as inputs to Asse Actively participates and provides inputs to Asset Liability support group which monitors company's liquidity position BETTER Actively involved in risk assessment of IT and Cyber Security and its mitigation strategies Developing a framework for ESG implementation in the organization Develop and manage business continuity plan for all critical corporate functions across the organization 78#79Information Technology#80Chola Enter a better life Technology Infrastructure Provide resilient & scalable environment Technology Updates ⚫Optimize deployment architecture and rollout of scalable hybrid cloud solutions • Execute network infrastructure transition for secure access to diverse workloads across locations • Establish FinOps for optimal infrastructure utilization along with improved performance management Augmented asset and service management solution to handle all lifecycle events of technology assets Security & Governance Embed cyber security & technology governance • Continuous engagement Cyber Security domain teams for ongoing assessment across IT environment • Increase cyber security and data handling awareness across organization's employee and customer base • Establish and Improve cadence for governance and review of third-party partners & tech service providers • Sustain clear electronic asset disposal policy and appropriate handling of e-waste murugappa Digital Engagement & Application Platform Deliver seamless digital experience for all • Open market rollout of direct to customer digital App with 100% digital personal loan disbursement & online servicing • Consolidation of core Loan Management System platform for the SME business Design and deploy enhanced functional capabilities in Originations solution for Home Loan business • Increase RPA penetration for processes across reconciliation, payments, & payouts in the Finance & Operations functions. People & Innovation Drive innovation & build new capabilities • Ensure compliance with RBI master directions - technology systems, CBS / CFSS initiatives, and outsourcing Improve employee engagement & paperless processes via collaboration tools, digital metrics, and automated reports Deploy enhanced bots and engagement of customers using online, voice, WhatsApp, and marketing automation channels • Competency based skill development for improved future readiness within Digital Technology function 80 80#81Chola Enter a better life Contact us Our registered office Email-ID Cholamandalam Investment and Finance Company Limited (Chola), Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044-4090 7172 http://www.cholamandalam.com BETTER Sujatha P-Executive Vice President & Company Secretary - [email protected] Arulselvan D- President & CFO - [email protected] murugappa 81#82Chola Enter a better life murugappa • • • Disclaimer Certain statements included in this presentation may be forward looking statements made based on management's current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and Finance Company Ltd and its subsidiaries. There can be no assurance that future developments affecting Cholamandalam Investment and Finance Company Ltd and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. Cholamandalam Investment and Finance Company Ltd does not intend and is under no obligation, to update any particular forward- looking statement included in this presentation. The facts and figures mentioned in this presentation is for informational purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of the Company, or the solicitation of any bid from you or any investor or an offer to subscribe for or purchase securities of the Company, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Nothing in the foregoing shall constitute and/or deem to constitute an offer or an invitation to an offer, to be made to the Indian public or any section thereof or any other jurisdiction through this presentation, and this presentation and its contents should not be construed to be a prospectus in India or elsewhere. This document has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any other jurisdiction or by any stock exchanges in India or elsewhere. This document and the contents hereof are restricted for only the intended recipient (s). This document and the contents hereof should not be (i) forwarded or delivered or transmitted in any manner whatsoever, to any other person other than the intended recipient (s); or (ii) reproduced in any manner whatsoever. Any forwarding, distribution or reproduction of this document in whole or in part is unauthorised. The information in this document is being provided by the Company and is subject to change without notice. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information. The Company or any other parties whose names appear herein shall not be liable for any statements made herein or any event or circumstance arising therefrom. 82#83Chola Enter a better life THANK YOU murugappa Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. | Tel.: 044 4090 7172 | Fax: 044 4090 6464 | Email: [email protected] | Website: www.cholamandalam.com Cholamandalam Investment and Finance Company Limited