#1Investor Update Q4 FY 2023 चायाः LICHFL LIC HOUSING FINANCE LTD#2LICHFL: A Journey of 33 Years...... नवग्रहाय अर्थसहाय LICHFL LIC HOUSING FINANCE LTD 2022 2019 Crossed ₹2,50,000 Cr in Assets Crossed 2,00,000 Cr in Assets & 2000 Cr Profit 2015 Crosses 1 lakh cr in portfolio 2011 2017 Crossed 150,000 cr in Crossed 2013 assets 50,000 Cr loan Crossed 1000 cr profit & portfolio 75,000 Cr assets 2007 2009 Launch of Fixed Crossed 500 crs profit Deposit Program "Sanchay Deposit" 2004 2002 GDR Issue AAA Rating 1989 Incorporated स्वगृहाय अर्थसहायः 1994 IPO 2#3Awards & Achievements 2019 - Voted as the 'Brand of the Decade 2019' by BARC Asia - NSE for Best Issuer on EBP 2022 -"Best Organisation for Women 2022" award by 'The Economic Times' -"BEST CSR" Award in the 11th Edition of Global CSR Excellence & Leadership Awards 2015 - Best Housing Finance Co. by BFSI Awards - Best data quality in HFC by CIBIL 2017 - Outlook Money- Best HFC' - Business Today BFSI Best CEO - NSE for highest Debt Issuance 2016 - Outlook Money-Best HFC - Best HFC by ABP News - Asia Pacific Entrepreneurship Award -Power Brands Awards by Franchise India वहाय अर्था LIC HFL LIC HOUSING FINANCE LTD#4New Initiatives and Developments वाय अर्थ LICHFL LIC HOUSING FINANCE LTD Introduction of Cluster driven Hub & Spoke Model for faster TAT in Loan disbursements. New Marketing offices to be opened. Successful implementation of new Core Loan Management System(LMS). ■ Specialised Team for appraisal of High Value Cases. Implementation & Integration of SAP Accounting package. 4#5Shareholding Pattern MFs & others, 26.01% March 2023 Public, 10.60% FII & other Overseas Investor, 18.15% LIC, 45.24% वाय अर्थ LIC HFL LICHFL LIC HOUSING FINANCE LTD Top 10 Shareholders Shareholder Life Insurance Corporation Of India Government Pension Fund Global % 45.24% 2.64% ICICI Prudential Value Discovery Fund 2.13% Bank Muscat India Fund 2.09% HDFC Life Insurance Company Limited 1.55% SBI Small Cap Fund 1.40% ICICI Prudential India Opportunities Fund 1.09% ICICI Prudential Life Insurance Company Limited 1.02% The Prudential Assurance Company Limited SBI Banking & Financial Services Fund 1.02% 1.00% 5#6Executive Summary – Q4 FY 23/ FY 23 Revenue from Operations Up by 21.05 % Profit After Tax Up by 5.51% वहाय अर्था LICHFL LIC HFL LIC HOUSING FINANCE LTD 8000 1500 6415.11 1118.64 1180.28 5299.66 6000 1200 4000 900 2000 600 0 300 Q4 FY 2022 Q4 FY 2023 Q4 FY 2022 Q4 FY 2023 Net Interest Income Up by 22.11 % Outstanding Portfolio Up by 9.53 % 2,500.00 300000 275047 1990.30 251120 2,000.00 1629.87 250000 1,500.00 200000 1,000.00 150000 500.00 100000 Q4 FY 2022 Q4 FY2023 2022 2023 6#7◉ ■ Executive Summary – Q4 FY 23/ FY 23 FY23 Total Disbursement Rs. 64115 cr, up 4%. Q4FY 23 Loan Disbursements Rs. 16027 cr against Rs. 19315 cr वहाय अर्था LICHFL LIC HFL LIC HOUSING FINANCE LTD ■ Individual Home Loan Disbursements Rs. 12406 cr as against Rs. 16341 cr. Net Interest Margins 2.93 % for Q4 FY23 as against 2.64 % for Q4 FY22. Net Interest Margins 2.41 % for FY23 as against 2.28 % for FY22. Stage 3 EAD at 4.37% as against 4.64 % as on 31.03.2022. Total ECL provision stood at Rs. 7230.26 Cr as on 31.03.2023. Board proposed a dividend of 425 % i.e. Rs. 8.50 per share 7#8Update- Last 5 Years Disbursement (Rs. Cr) CAGR 4% Loan Portfolio (Rs.cr) CAGR 9% **LIC HFL अ LIC HOUSING FINANCE LTD 61848 53908 55223 64115 300000 60000 232003 251120 275047 46936 250000 210578 50000 194646 200000 40000 30000 150000 20000 100000 10000 50000 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Income (Rs. cr) CAGR 7% Profit After Tax (Rs. cr) CAGR 4% 25000 22674 3500 17365 19670 19848 19953 2734 2891 3000 20000 2431 2401 2500 2288 15000 2000 10000 1500 1000 5000 500 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 8#9Update- Last 5 Years Gross & Net NPAs# Total Provisions* (Rs cr) नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 7230 5% 4% 3% 2% do do do do do do do 6% 5.35% 7500 4.49% 5839 4.01% □ Gross 6000 .72% 2.86% 2.70% 2.70% Net 3971 4500 1.5408% 1.99% 2612 3000 1659 1% 1500 0% 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Operating Expense to Total Income 5% 0% 90 Profit per employee (Rs. lacs) 150 112.66 117.43 105.28 100.41 100 92.73 4.75% 4.36% 2.74% 3.14% 3.53% 50 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 *#As per IGAAP *ECL Provisions of Stage 1,2 and 3 9#10Update- Last 5 Years EPS (Rs) (Rs 2/- pd up) Book Value (Rs) (Rs 2/- pd up) नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 54.18 492.38 60 48.16 47.59 52.56 50 43.14 360.47 402.35 414.88 400 322.19 40 30 200 20 10 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Return on Avg Equity Return on Avg Loan Assets 20% 2% 16.00% 14.00% 14.00% 1.34% 11.00% 12.00% 1.18% 1.24% 0.95% 1.10% 10% 1% 0% 0% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 10#11Large geographic presence Corporate office Regional offices Back offices • • • Shimla O Operating offices Chandigarh • Amritsar Jalandhar ° Ludhiana O Bhatindambala o o Hisar Patiala • Dehradun Karnal Noida Meerut o Haldwani Gurgaon New Delhi Faridabadoo Ghaziabad • नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 9 Regional Offices 24 Back Offices Rep office in Dubai Coverage of more than 450 centres 2462 Employees Kannur o Thrissur ° Kozhikode Erode Tiruchirapalli Palghat Ernakulam Kottayam O Thiruvananthapuram ° O Hosur OMysore OHassan O Salem Coimbatore • Bareilly O Bikaner OO Jaipur Agra ° OGorakhpur Jodhpur O Kota OOAjmer ●Lucknow Udaipur ° Gwalior ° Kanpur O Patna Gangtok O O Siliguri Jorhat O Guwahati ° O Malda Silchar • Ahmedabad Allahabad ° OGandhidham ° O Rajkot O Vadodara 0° Bhopal Indore O Varanasi Dhanbad OBehrampur O Ranchi Durgapur Jamshedpur Kolkata • Surat Nallasopara ° • Vapi ° • Kalyan O Jalgaon Jabalpur Nagpur Bilaspur Raipur ° Durg-Bhilai • Rourkela *Cuttack Nasik Aurangabad Thane Warangal Mumbai ° Vashi Jogeshwari ° ° Visakapatnam 0° Pune O Kolhapur ° Oo Hyderabad Gulburga ° Rajahmundry Vijayawada O Satara Kurnool • Belgaum ° 0 ° Kakinada ° ° Panjim ° ° Bellary Anantapur Guntur Hubli ° ○ Tirupati Bengaluru .. Mangalore O ° Nellore Chennai Widening footprint...improved efficiencies. Bhubaneshwar Year No of Marketing No of Back offices No of Regional No of Employees Lon Portfolio Offices Offices Rs cr 2008 125 14 6 985 21936 o Vellore 2013 194 16 7 1446 77812 ° • Pondicherry ° Thanjavur 2020 282 24 9 2392 210578 Madurai Tirumangalam Kollam Nagercoil 2023 281 24 9 2462 275047#12Distribution Network as on 31.03.2023 **LIC HFL अ LIC HOUSING FINANCE LTD 281 Marketing Offices New Marketing Channel HOME LOAN AGENTS (HLAs) (Agents of LIC) DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAS) (Individual Agents of the Company) 48 branches of LICHFL Financial Services (100% subsidiary of LICHFL) DIRECT MARKETING EXECUTIVES (Captive Marketing Channel) *Online Loan approvals during FY23 were Rs.32518 Cr#13Origination Pattern & Average Ticket Size Customer Type (No.) 12% 88% ■Salaried ■ Self Employed Incremental Ticket Size (Rs lacs) 28.0 27.0 26.0 25.0 24.0 23.0 22.0 21.0 FY22 FY23 Originations by source 11% 9% 2% 3% 54% 21% ■ HLA ■ DIRECT ■ DSA/DMA ■ CRA ■DME नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD ■LICHFLFSL Top 7 cities & Others 59% 198 Offices 41% 83 Offices Top 7 cities ■ Others 13#14Loan Book Composition Non-Housing Individual 10.0% NHC-Project Loans 4.3% NHC-Others 2.5% Individual Home Loans 83.2% NHC-Project Loans 5.2% NHC-Others 3.8% Non-Housing Individual 9.7% Individual Home Loans 81.3% 31.03.2023 O/s Portfolio Rs. 275047 cr 31.03.2022 O/s Portfolio Rs. 251120 cr नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#15Individual Loans - Portfolio Stats **LIC HFL अ LIC HOUSING FINANCE LTD Pure Floating Rate Loans To Outstanding Portfolio Loan To Value Ratio On Incremental Sanctions As of FY21 97% For FY21 48% As of FY22 95% For FY22 48% As of FY23 97% For FY23 47% Prepayment Lump Sum/ opening book Installment to Net Income Ratio On Incremental Sanctions For FY21 10.8% For FY21 29% For FY22 10.9% For FY22 29% For FY23 9.0% For FY23 30% 15#16Financial Highlights नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD FY2023 FY2022 Return on Average Equity (%) 12% 11% Return on Average Assets (%) 1.10% 0.95% Earnings per share (on Rs 2 pd up) 52.56 43.14 Dividend per Share (on Rs 2 pd up) 8.50 8.50 Capital Adequacy Ratio Sept 2022 March 2022 Tier I 16.38 16.23 Tier II 1.36 1.85 Total 17.74 18.08 16#17Executive Summary – Q4/FY23 - Particulars **LIC HFL LIC HOUSING FINANCE LTD Var Q4 Q4 Var FY23 FY22 FY23 (Rs. Cr) FY22 (Rs. Cr) (Rs. (Rs. Cr) Cr) Revenue from Operations 21.05% 6415.11 5299.66 13.75% 22656.95 19919.07 Finance cost Net Interest Income 23.27% 4387.73 3559.38 14.17% 16185.96 14177.25 22.11% 1990.30 1629.87 14.86% 6330.26 5511.21 Impairment on Financial Instruments and Net Loss on De-recognition of Financial 59.39% 306.76 192.46 -3.90% 1942.96 2021.83 Instruments Profit before Tax Tax Expense Net Profit 9.92% 1444.78 1314.41 28.03% 3557.00 2778.15 35.11% 264.50 195.77 35.67% 665.97 490.87 5.51% 1180.28 1118.64 26.40% 2891.03 2287.28 17#18Executive Summary - Q4/FY23 Particulars ***LIC HFL अ LIC HOUSING FINANCE LTD Rs. cr Q4 Q4 Var Var FY23 FY22 FY23 FY22 Disbursements Individual Housing Loan (IHL) -24.08% 12406 16341 -0.38% 53459 53662 Non-Housing Individual (NHI) -22.55% 1889 2439 14.07% 7459 6539 Non-Housing Commercial (NHC) 66.36% 178 107 49.70% 500 334 Project Finance (PF) 263.08% 1554 428 105.56% 2697 1312 Total -17.02% 16027 19315 3.67% 64115 61847 Outstanding Portfolio Individual 10.57% 263309 238142 Project -9.55% 11738 12978 Total 9.53% 275047 251120 Net Interest Margins(%) 2.93% 2.64% 2.41% 2.28% Weighted average cost of funds 7.63% 6.52% Yield on advances annualised 10.01% 8.39% Spreads 2.38% 1.87%#19Liability Profile as on 31.3.2023 Source Wtd **LIC HFL अ LIC HOUSING FINANCE LTD Outstanding Borrowings - Rs. 244696 cr Avg CP Deposits 5% Cost Tier II 5% 1% (%) NHB Banks 8.23% 5% National Housing Bank 5.75% Non Convertible Debenture 7.48% Tier II 7.30% Commercial Paper 7.69% Deposits 6.65% NCD Total 7.63% 50% During FY23, Incremental Cost of funds was 7.38% During Q4 FY23, Incremental Cost of Funds was 7.84% Bank 34%#20Change in Liability Mix- last 4 yrs नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY20 FY21 FY22 FY23 8.08% 6.93% 6.52% 7.63% Wtd. Avg. cost of Funds Others ■Deposit NHB Bank NCD 20#21Yield & Cost of Funds on portfolio 12.00% 10.00% 8.39% 8.00% 6.00% 4.00% 2.00% 6.52% 10.01% 7.63% 0.00% FY22 FY23 Yield on Advances on 8.39% 10.01% Portfolio Wtd Avg cost of funds on 6.52% 7.63% Total Borrowed Funds नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#22NIM'S NIMS (for the year) 2.37% 2.50% 1.50% FY21 122 FY22 2.28% 2.41% 22 नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#23NIM'S 4.00% 3.50% 3.00% 2.54% 2.50% 2.00% 1.50% 1.00% Q1FY23 Q2FY23 1.80% Q3 FY 23 2.42% Q4 FY 23 23 2.93% नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD#24Classification of Assets Exposure At Default March-23 March-22 ***LIC HFL नवग्रहाय LIC HOUSING FINANCE LTD % Stage 1 90.37% 92.28% Stage 2 5.25% 3.08% Stage 3 4.37% 4.64% Total 100% 100% ECL Provision March-23 Stage 1 Rs 677.73 Cr Stage 2 Rs 1171.31 Cr Stage 3 Rs 5381.22 Cr Stage 3-PCR 44.65 % March-22 Rs 578.45 Cr Rs 240.11 Cr Rs 5020.55 Cr 43.06 % 24 24#25Thank you नवग्रहाय अ LIC HFL LIC HOUSING FINANCE LTD DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Company nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc. 25