#144 Tin SREI Together We Make Tomorrow Happen INVESTOR PRESENTATION SEPTEMBER, 2020#2Corporate Structure PROMOTERS 60.80% Fund Based Business SREI Together We Make Tomorrow Happen 39.20% PUBLIC - Srei Infrastructure Finance Limited (Listed) - Fee Based Business Infrastructure advisory Financial Solutions Advisory SREI Equipment Finance Limited (SEFL) 100% ⚫Largest financier in Construction, Mining and allied Equipment ("CME") sector in India •Pan India presence with 89 offices • Expanded to medical, IT and allied equipment SREI Capital Markets Ltd. (SCML) Srei Insurance Broking Pvt. Ltd. (SIBPL) 100% • Expertise in transaction advisory, stressed asset resolution and other capital market activities •Strong relations with Fls & industry counterparts 100% ⚫Is a composite insurance broker, licensed by the Insurance Regulatory Development Authority (IRDA), enabling the company to act as a Direct Broker and a Reinsurance Broker in both the Life and Non Life Insurance sectors Trinity Alternative Investment Managers Ltd. (TAIML) 51% •Managing multiple Alternate Investment Fund (AIF) registered under different AIF categories of I & II •Has a track record of managing equity, debt, and mezzanine funds Investments Transportation Energy • Social & Commercial Infra 2#3Milestones In 30 Years Journey of SREI - SREI Together We Make Tomorrow Happen CONSISTENTLY GROWING OVER THE LAST 30 YEARS 2011-2020 1981-1990 1989 Started operations and identified infrastructure sector as the core business 1991-2000 1992 Initial Public Offering. Currently listed on all major Stock Exchanges BSE, NSE and CSE 1997 International Developmental Institutions -IFC, Washington (World Bank Group); DEG (Owned by Govt. of Germany) & FMO (Owned by Govt. of Netherlands) invested as strategic equity partners 2001-2010 2008 50:50 JV with BNP Paribas for equipment financing business 2009 Strategic partnership with Tata Group for Passive Telecom Infrastructure business 2010 Synergistic integration of Srei and Quippo to create a fully integrated holistic infrastructure institution 2011 Infrastructure Finance Company and Public Finance Institution status 2012 Srei received certificate of registration for mutual fund (infra-structure debt fund) from SEBI 2016 Sells stake in Viom to ATC, Equipment Financing arm becomes 100% Subsidiary w.e.f, 17th June, 2016 2019 SREI completes 30 years Consolidation of Loan & Lease Portfolio in single entity 3#4Board of Directors SREI Together We Make Tomorrow Happen Hemant Kanoria - Chairman He has over 39 years of experience in industry, trade and financial services. He is currently serving as Board Member in the Indian Institute of Information Technology, Guwahati, Neotia University and New Delhi Institute of Management. Dr. Punita Kumar Sinha - Independent Director She has focused on investment management and financial markets during her 27 year career. She spearheaded some of the first foreign investments into the Indian equity markets in the early 1990s. Currently, she is the Founder and Managing Partner, Pacific Paradigm Advisors, an independent invest-ment advisory and management firm focused on Asia. Sunil Kanoria - Vice Chairman He has more than 29 years of experience in the financial services industry. He is the immediate past President of The Associated Chambers of Commerce & Industry of India, nominated Council member of The Institute of Chartered Accountants of India and the former Governing body member of the Construction Industry Development Council (CIDC). He is also presently the Honorary Consul of Spain in Kolkata, with jurisdiction over the State of West Bengal. S. Rajagopal - Independent Director He has more than 41 years of experience in the Banking industry and is the former Chairman & Managing Director of Bank of India and Indian Bank. S. Chatterjee Independent Director A seasoned professional, he has over 45 years of experience in Retail, Commercial, Investment Banking and NBFC. Associated with the State Bank of India for 26 years, he has extensive exposure in the area of International Banking at SBI, London and as the Chief Representative in Washington DC having worked closely with IFC, World Bank and IMF. Malay Mukherjee - Independent Director He has over 40 years' of experience in the field of Banking and NBFC including Venture Funding, Factoring and Broking. He is the former Chief Executive Officer (CEO) and Managing Director of IFCI Limited and also the former Executive Director of Central Bank of India. R. K. Agarwal Independent Director He has over 40 years of experience in various fields like Audit, Taxation, Company Law, Consultancy etc. He has been a Partner with S. R. Batliboi & Co. (Member firm of Ernst & Young in India) since 1978 and was the Managing Partner of the Firm at the time of his retirement in June, 2013. Dr. Tamali Sengupta - Independent Director She has over 32 years of experience in the legal field and is a specialist in transnational legal transactions in media, real estate development, insurance and infrastructure. She is a widely published author and is a Fellow of the Centre of International Legal Studies at Salzburg. She is the Principal of T. Sen Gupta & Associates, a corporate law practice based in New Delhi. 4#5BUSINESS OVERVIEW#6Equipment Finance - An established leader SREI Together We Make Tomorrow Happen • Equipment Solutions Strong OEM Partnership • Co-Lending with Banks . Leasing Sole Lending Present business model Financial Solutions ⚫ Collection Continue reduction in Infrastructure Portfolio / Exit Syndication Asset Solutions • Centralized function of repossession and sales of repossessed equipment Optimized repossession cost $ Fund Management . Asset Monetization . · • • • • Profit on sale of repossessed equipment . · . Risk Management Independent Risk Framework Enterprise Risk Function Three layer Risk Management culture Transaction Level Training & Awareness Program • • Portfolio Level Technology & Data Analytics Policy Level Review of policies based on dynamic environment Business Drivers Technology Analytics powered Credit Engine • Integration into API economy • Data analytics led decision making Operating Efficiency Process automation to reduce transaction cost • • Portfolio Sell down Wholesale Liability External Commercial Borrowing Assignment/Securitization Term Loan with Bank for onward lending Cost Optimization Retail Liability Bonds/NCD People Fully functional role based structure On Line Assessment of Sales and Collection workforce Reskilling & Up skilling • Inspiring Place to Work#7Wide Distribution Capabilities DISTRIBUTION States 272 Vendor & Manufacturer Partnerships 78 Branches 92 Satellite Locations 21 1,322 Employees 153 SEPS¹ ZONE WISE CONTRIBUTION SREI Together We Make Tomorrow Happen East North South West 5.0% 10.8% 56.3% 28.0% Associations with OEMS ✓ Preferred label of association with Preferred financer ✓ Private label of association ✓ JV with manufacturers creating captive opportunity Key Advantages ✓ Assured business By Disbursements (H1 FY21) ✓ Strong entry barriers i.e. Right of first refusal (ROFR) ✓ Joint risk participation 1 Srei Entrepreneur Partners#8Co-Lending: Capital Efficiency through Sustainable Partnerships Co-Lending growth model – 80% banking partner and 20% SEFL; minimizing liability constraints for growth Higher Interest Income: SEFL benefits through higher lending rates while the customer benefits from lower blended rates Market Share: Catering to various customer segments depending on bank's risk appetite SREI Together We Make Tomorrow Happen EXISTING BANKING PARTNERS punjab national bank A केनरा बैंक Canara Bank बैंक ऑफ़ बड़ौदा Bank of Baroda Fee Income growth: Sourcing & Appraisal Collection, Leverage Existing Strength Rs 970 Crs of business Since FY20 269 Recovery & Legal, Disbursement & Customer Service यूको बैंक QUCO BANK सम्मान आपके विश्वास का (A Govt. of India Undertakingl Honours Your Trust Understanding of the asset lifecycle Deep understanding of equipment, customer and geography risks 701 67 H1 FY20 H2 FY20 H1 FY21 ICICI Bank#9Technology & Digitization SREI Together We Make Tomorrow Happen Customers • Fully functional Customer Service customer Portal and My Srei App E-KYC - reduced acquisition cost Real-time check multi-bureau credit De-dupe for risk/credit control • Asset & customer scoring model Online customer queries and services requests . Channel Partners Vendor portal connecting all other stake holders to the vendors Employees Employee self-service portal and app Hand-held devices and collection app for feet-on-street Field Investigation and Management Lead Channel Partners Sensor based asset tracking along with Geo-Fencing enables better control on asset movement. Automated credit appraisal and delivery process Business Intelligence tool to manage portfolio risk Platform Partner Quippo®* quick equipment • Buy/Sell Offering platform for buy/sell of new and used equipment Platform for sale of spare parts Opportunity matchmaking Up-sell and Cross- sell Auction Simulcast Auction • Online Auction • Reverse Auction Finance Asset Solutions • Yard Management • Rentals Management Valuation Valuation of equipment Image based models Co-lending platform Co-origination platform • Asset • Integration with financers . Insurance Collection Services Services • Logistics#10Diversified Funding As on 30-Sep'20 Diversified Sources of Borrowing Securitisation & Assignment, 15.54% Domestic Borrowing - Banks. 59.49% NCDs 13.27% Domestic Borrowing - FI/Others 4.30% ECB & FC Loans 7.40% Commercial Paper & ICDs 0.00% SREI Together We Make Tomorrow Happen 1995-2000 KFW DEG SEB HYPO FMO Entrepreneuriall Development Bank HYPO LENDING An Innovative Mortgage Bank IFC International Finance Corporation BIO 2001-2005 Belgian Investment Company for Developing Countries KFW DEG ANNFUND ups UPS Capital® FMO IFC NIB Entrepreneurial Development Bank 2006-2010 BNP PARIBAS LEASING SOLUTIONS HSBC DBS 2011-2015 CeEB HSBC KFW DEG f ICICI Bank вання сокровищки European Investment FMO Standard Chartered Devel Bark 2016-2018 PROPARCO S Chartered BNP PARIBAS ING KFW ☑ Deutsche Bank HINNFUND DEG SMFL CAPITAL OeEB Standard Charted No Asset - Liability Mismatch / CP is Negligible and Not Used for Lending / Focus on Liability Diversification#11Fund Management Portfolio Sell down Syndication Asset Monetization SREI Together We Make Tomorrow Happen . Portfolio Sell Down & Closure of Rs 393 Crs in Q1 FY21; Rs 304 Crs in Q2 FY21 • More than ~Rs 200 Crs of portfolio sell down is in pipeline Wholesale Liability • External Commercial Borrowing • Assignment & Securitization of Portfolio • Term Loan with Bank for onward lending • Cost Optimization • ~Rs 27 Crs of new ECB raised from ING-LLC (In May-20) • ~Rs 88 Crs of new ECB sanctioned from KfW IPEX-Bank . Credit Approval Received for USD 33 Mn from Guarantco#12Awards & Accolades INDIA'S BEST COMPANIES TO WORK FOR 2020 Srei Equipment Finance Ltd. 99 Forting plan ham that morgen Compes to Work for CIA CIP World ders and Buing CAME SREI Together We Make Tomorrow Happen Great Place to Work-Certified™ by Great Place to Work Institute Iconic Brands of India 2020 by Economic Times Best Company in Cons truction Equipment Finance 2020 by CIA World Game Changers of India 2018 by Economic Times NBFC WEST BENGAL BEST EMPLOYER BRAND AWARDS 2018 SREI Companie rk far ition lavalo ET BFSI Srei Equipment Finance Limited Best NBFC in SME Financing for BFSI Leadership Awards 2018 at 3rd NBFC100 Tech Summit, 2018 Best Employer Award India 2018 by Employer Branding Institute "Dream Companies to Work for" Award 2018 Best BFSI Company in Brand Excellence & Marketing by Equipment Times#13FINANCIAL HIGHLIGHTS#14Balance Sheet Srei Infrastructure Finance Limited - Consolidated Balance Sheet Summary (Rs Crs) SREI Together We Make Tomorrow Happen H1FY21 H1FY20 Q1FY21 FY20 Net Worth Borrowings 4,064 4,130 4,058 4,006 31,435 33,108 31,435 32,319 Interest Earning Assets (excl Securitisation) 34,650 35,905 34,644 35,222 1,563 2,094 1,129 1,109 Investments Key Ratios Sep-20 Sep-19 Jun-20 Mar-20 RoE 1.4% 4.8% 2.3% 2.2% RoA 0.1% 0.5% 0.2% 0.2% EPS (Rs) (Annualized) 1.1 3.9 1.8 1.8 Book Value (Rs) 80.8 82.1 80.7 79.6 NNPA 6.6% 6.2% 6.2% 5.8% 14#15Income Statement Srei Infrastructure Finance Limited - Consolidated Income Statement (Rs Crs) SREI Together We Make Tomorrow Happen H1FY21 HYFY20 Q2FY21 Q2FY20 Q1FY21 FY20 Income from Finance Activities 2,031 2,494 1,000 1,182 1,031 5,015 Finance charges 1,737 1,826 878 906 859 3,571 NII 294 667 122 276 172 1,443 Non Interest Income Income from Fee Based Activities 33 58 16 33 18 116 Others 52 -16 23 -16 29 -126 Net Income 380 710 161 293 219 1,433 Operating Expenditure 194 253 89 128 105 467 Provisions & Write offs 143 299 63 78 80 837 Profit Before Tax 43 157 8 86 35 129 PAT (after Minority) 28 98 5 55 23 89 15#16Disclaimer SREI Together We Make Tomorrow Happen Srei Infrastructure Finance Limited Disclaimer: In this communication we have disclosed certain forward-looking information to enable investors to comprehend our future prospects and take informed investment decisions. This report and other statements - written and/or verbal - that we periodically make/publish contain forward-looking statements that set out anticipated results based on the management's plans and assumptions for future growth and development of the organizations. We have tried wherever possible to identify such statements by using words such as anticipate, estimate, expects, projects, intends, plans, believe, and words of similar substance in connection with any discussion of future performance. We do not guarantee, warrant and/or recommend, express or implied, as to the accuracy or completeness of such assumptions and that these forward- looking statements will be realized, although we believe we have been prudent in assumptions which are subject to dynamic changes. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Prospective investors are recommended to take there decisions based on interpretations and assumption of such published forward looking statements.. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Moreover, neither we or any other company or subsidiary of the Srei Group, nor any of its officers, directors or employees accept any liability or responsibility in respect to the information or any assumptions expressed herein. The information contained herein has been prepared exclusively for informational purposes and is not an offer or solicitation of an offer to buy/sell the securities/instruments mentioned or to participate in any trading strategy or an official confirmation. This is not a research but it may refer to a research analyst/research report.. Information is subject to change without notice and we may not update this. Past performance is not indicative of future returns. This price information (if any) is provided solely for informational purposes and may differ substantially from price information available from other sources or an actionable price. For Investor Queries, Please contact :- Mr.Sandeep Lakhotia Company Secretary Srei Infrastructure Finance Ltd. Email: [email protected] Phone: 033-66023003 16#1744 Tia 81 THANK YOU T 小圍 81 17