#1PA Muthoot Finance Financial Results Q1 FY 2022 June 2021 MUTHOOT FINANCE LIMITED#2Ⓡ Muthoot Finance SAFE HARBOUR STATEMENT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. 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. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. 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. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation. 1#3THE GROUP Diversified business of the Group Muthoot Finance Primary Business Shareholding of holding company (%) Muthoot Finance Limited Muthoot Homefin (India) Limited Gold Loans Affordable Housing Finance Holding Company 100.00 Belstar Microfinance Limited Muthoot Money Limited Asia Asset Finance PLC Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Muthoot Trustee Private Limited Microfinance Vehicle Finance 70.01 100.00 Listed Diversified NBFC in Sri Lanka 72.92 Insurance Broking 100.00 100.00 100.00 2#4THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance Q1 FY 2022 Q1 FY 2021 YoY(%) FY 2021 5,443 5,330 2 5,451 Consolidated Gross Loan Assets* of the Group (in million) 581,348 465,008 25 582,802 Consolidated Profit of the Group (in million) 9,786 8,577 14 38,189 Contribution in the Consolidated Gross Loan Assets* of the Group Muthoot Finance (%) 90 88 90 Subsidiaries (%) 10 12 10 Contribution in the Consolidated Profit of the Group Muthoot Finance (%) 99 98 97 Subsidiaries (%) 1 2 3 *Principal amount of Loan assets 3#5THE GROUP Gross Loan Assets* of the Group Ⓡ Muthoot Finance (in millions) Jun-21 Mar-21 Jun-20 YoY (%) Muthoot Finance Limited 526,138 526,223 412,957 27 Muthoot Homefin (India) Limited 17,048 17,042 19,787 (14) Belstar Microfinance Limited 30,721 32,999 25,754 19 Muthoot Money Limited 3,326 3,668 4,966 (33) Asia Asset Finance PLC 5,320 5,150 5,444 (2) Less: Intra-Group Loan Assets 1,205 2,280 3,900 (69) Total 581,348 582,802 465,008 25 *Principal amount of Loan assets 4#6THE GROUP Standalone Profit of Group Companies Ⓡ Muthoot Finance (in millions) Q1 FY 2022 Q1 FY 2021 FY 2021 Muthoot Finance Limited 9,712 8,408 37,222 Muthoot Homefin (India) Limited 5 4 126 Muthoot Insurance Brokers Private Limited 43 42 316 Belstar Microfinance Limited 20 Muthoot Money Limited Asia Asset Finance PLC 20 145 467 (1) (25) 37 4 (7) 18 10 19 Muthoot Asset Management Private Limited Muthoot Trustee Private Limited 0.05 0.05 (0.10) 5#7Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Mar-21 Jun-20 Particulars Jun-21 ASSETS Financial assets Cash and cash equivalents 87,181 77,775 66,710 Bank Balance other than above 1,993 2,435 2,376 Derivative Financial Instruments 499 154 1,490 Trade Receivables 95 98 114 Loans 594,610 588,085 469,195 Investments 7,829 8,085 28,024 Other Financial Assets 3,214 4,383 2,202 Non-Financial Assets Current Tax Assets (Net) 75 94 62 Defered Tax Assets (Net) 735 593 269 Investment Property 141 139 162 Property, Plant and Equipment 2,531 2,575 2,386 Right to use Asset 162 170 155 Captial Work-In-Progress 394 385 302 Goodwill 300 300 300 Other Intangible Assets 83 86 81 Intangible assets under development 1 1 Other Non Financial Assets 1,172 1,056 1,272 Total-Assets 701,015 686,414 575,100 10#8Consolidated Statement of Assets and Liabilities Particulars LIABILITIES Jun-21 Mar-21 Ⓡ Muthoot Finance (in millions) Jun-20 Financial Liabilities Derivative Financial Instruments 3,408 3,305 Trade Payables 1,692 2,112 2,716 Other Payables 8 2 Debt Securities 143,212 146,670 97,596 Borrowings (other than Debt securities) 368,162 351,010 324,981 Deposits 3,013 2,580 2,720 Subordinated Liabilities 3,296 3,707 3,964 Lease Liability 172 178 160 Other Financial Liabilities Non-Financial Liabilities Current Tax Liabilities (net) 11,939 13,598 8,992 2,829 1,303 2,101 Provisions Deferred Tax Liabilities(net) Other Non-Financial Liabilities EQUITY Equity attributable to equity owners of the company 157,273 155,750 125,891 Non-Controlling Interest 1,854 1,846 1,774 Total Liabilities and Equity 701,015 686,414 575,100 7 3,731 3,695 3,801 119 142 93 307 517 311#9Ⓡ Muthoot Finance Consolidated Financial Results Particulars Income Interest Income Service Charges Sale of Services (in millions) Q1 FY 2022 Q1 FY 2021 YoY (%) FY 2021 29,183 25,289 15 112,316 155 137 13 986 27 18 50 120 Other Income 76 23 230 356 Income other than above 193 601 (68) 1,886 Total Income 29,634 26,068 14 115,664 Expenses Finance Cost 10,856 9,720 12 40,999 Impairment of Financial Instruments 818 431 90 2,552 Net Loss on derecognition of financial instruments 120 Employee Benefit Expenses 2,771 2,800 (1) 11,893 Depreciation, Amortisation and Impairment 152 140 9 674 Other Expenses 1,819 1,462 24 8,232 Total Expenses 16,536 14,553 14 64,349 Profit before tax 13,098 11,515 14 51,315 Tax expense 3,312 2,938 13 13,126 Profit after Tax 9,786 8,577 14 38,189 Earnings per share -Basic (7) 24.37 21.28 15 94.84 Earnings per share -Diluted (*) 24.35 21.25 15 94.76 ∞#10Ⓡ MUTHOOT FINANCE: DRIVING INCLUSIVE GROWTH ○ India's largest gold financing company (by loan portfolio) Muthoot Finance Trusted pan-India brand in the gold loans sector; revolutionised India's gold banking 。 Our intervention has empowered millions of people across the social pyramid Multiple service offerings CORE SERVICE OTHER SERVICES Gold Loans Money Transfer Services Collection Services Business loans Personal Loans 6#11MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 171 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 25,000+ Team members 526,138 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day. (As of June 30, 2021) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 74% stake 23.31 3.13 73.56 В Ⓡ Muthoot Finance (%) Shareholding as on June 30, 2021 Promoters & Relatives FII, FC, MF & Others Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on June 30,2021) 594,437 million 11#13BOARD OF DIRECTORS George Jacob Muthoot Chairman Ⓡ Muthoot Finance George Alexander Muthoot Managing Director George Thomas Muthoot Whole time Director Alexander M George Whole time Director Jacob Benjamin Koshy Independent Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director V. A. George Independent Director Pratip Chaudhuri Independent Director Usha Sunny Independent Director 12#14DIVIDEND PAYOUT Delivering consistent returns to stakeholders Dividend (%)* Ⓡ Muthoot Finance (%) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 200 150 120 100 60 60 60 Dividend payout (in millions) 8,024 7,249 5,796 4,813 2,885 2,877 2,813 Dividend Payout Ratio (%) * On face value of 10 per equity share 21 19 24 22 20 20 29 35 55 13#15GEOGRAPHICAL PRESENCE A strong presence of 4625 branches across India (%) Branches region wise State wise Branch Network 60 60 17 ■ East 16 North ■ West ■South (As of June 30, 2021) Rural India accounts for about 65% of total gold stock in the country. o Large portion of the rural population has limited credit access 。 Catering to under-served rural and semi- urban markets through strong presence Jammu & Kashmir 16 Pa Muthoot Finance Punjab 189 Himachal Pradesh 10 Haryana 136 Uttarakhand 22 Chandigarh 10 Delhi 224 Rajasthan 145 Uttar Pradesh 185 Bihar 25 Gujarat 195 Madhya Pradesh 100 Jharkhand 17 West Bengal $156 Daman & Diu 01 Chhattisgarh 25 Odisha 74 Maharashtra 261 Dadra & Nagar Haveli 01 Telangana 294 Goa 26 Karnataka 519 Andhra Pradesh 413 Pondicherry 8 Tamil Nadu Kerala 972 558 Assam 33 Tripura 4 Andaman & Nicobar Islands 6 14#16DIGITAL INITIATIVES Digital convenience for new gen & Millennium Customer acquisition Muthoot E-TRANSFER • Paytm पे PhonePe Google Pay BBPS BHARAT BILL PAYMENT SYSTEM NPCI NATIONAL PAYMENTS CORPORATION OF R . • • Direct Credit Facility Loan proceeds credited to bank account NEFT/RTGS/IMPS mode of bank transfer Less cash handling at branch Instant credit to customer bank account Loan repayment option through • Paytm Phone Pay Google Pay BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance Pa Muthoot Finance 982 DUC 682 POS Terminals Enables swiping of Debit cards issued by banks Swiping charges for Interest payments waived off 15#17DIGITAL INITIATIVES Ⓡ Muthoot Finance Online Gold Loan (OGL) 28.5 % of gold loan customers are transacting online. (including Paytm, PhonePe & Google Pay) Muthoot Online ¡Muthoot App Muthoot Muthoot Qnline Our online services has now been re-branded to Muthoot Online, from WebPay earlier. Customers can now make payment of interest and principal re-payments using Debit Card/Net Banking. Withdraw available loan amount and renew eligible loans through our Online Gold Loan (OGL) facility. To facilitate this service, we have partnered with leading Banks and online payment gateway service providers. e-Sign facility has been launched in September'17. Bank account online linking feature introduced. Insurance products- Hospicash renewal launched Introduced Whats App opt-in facility for customers Muthoot personal loan and homefin loan repayment facility introduced. • • • • • • Mobile App Launched in Nov'16 has about 35.8 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.5,793 Crs payments from 1.8 Cr successful transactions so far (Including Web Pay). Updated scheme details available with loan calculator. Google maps integrated for easy location of nearest branch and fix appointment. UPI facility has been introduced in Feb'19. Paytm Payment gateway has been introduced in June'19. e-Sign facility has been introduced in Jan'18. Along with gold loans, lead creation for PL, HL, AL also introduced. Bank account online linking feature introduced. Insurance products (Hospicash, MSOP, MHP) also launched) . Introduced Whats App opt-in facility for customers 16#18DIGITAL INITIATIVES Loan at Home • Loan at Home App Muthoot Finance Loan @Home Mobile App Launched in July'20 has about 10K + downloads. The loan at home is an app-based digital service, with which a customer can apply for a gold loan through the 'Loan@Home' mobile app and web portal After which an appointment is made for the visit by Muthoot Finance executives, to visit the customer's home. Now the customer can avail of a gold loan from the comfort of their home without having to visit the branch at any stage of the procedure. Loan top-up and repayment facilities are also available in this application Facility to place loan release request online Option to update Bank account and PAN card online Ⓡ Muthoot Finance 17#19Standalone Statement of Assets and Liabilities Muthoot Finance (in millions) Particulars Jun-21 Mar-21 Jun-20 ASSETS Financial assets Cash and cash equivalents 82,321 71,167 58,786 Bank Balance other than above 509 731 741 Derivative Financial Instruments 499 154 1,490 Trade Receivables 55 35 83 Loans Investments 548,144 540,634 425,620 16,000 15,903 36,130 2,105 2,099 1,135 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 315 286 127 Property, Plant and Equipment 2,381 2,416 2,202 Captial Work-In-Progress 394 385 302 Other Intangible Assets 51 54 48 Other Non Financial Assets 895 786 1,059 Total Assets 653,669 634,649 527,723 18#20Standalone Statement of Assets and Liabilities Particulars LIABILITIES Jun-21 Mar-21 Ⓡ Muthoot Finance (in millions) Jun-20 Financial Liabilities Derivative Financial Instruments 3,408 3,305 Trade Payables 1,602 2,017 2,620 Debt Securities 135,213 137,961 92,808 Borrowings (other than Debt securities) 340,454 319,406 292,075 Subordinated Liabilities 1,711 2,096 2,956 Other Financial Liabilities 10,810 12,135 8,110 Non-Financial Liabilities Current Tax Liabilities (net) 2,749 1,282 2,065 Provisions 3,652 3,626 3,716 Deferred Tax Liabilities (net) Other Non-Financial Liabilities 229 432 212 EQUITY Equity Share Capital Other Equity Total Liabilities 4,012 4,012 4,010 149,830 148,377 119,151 653,669 634,649 527,723 19#21REVENUE & PROFIT Standalone Financial Results INCOME Ⓡ Muthoot Finance (in millions) Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 YoY Growth FY 2021 (%) Interest Income 26,837 27,891 23,160 16 103,285 Other than Interest Income 312 390 694 (55) 2,458 Total 27,149 28,281 23,854 14 105,744 EXPENSES Finance Cost 9,822 9,513 8,715 13 36,924 Employee benefit Expense 2,246 2,209 2,282 (2) 9,270 Administrative & Other expenses 1,562 2,246 1,277 222 7,235 Impairment on Financial Instruments 336 111 146 130 950 Directors Remuneration 68 551 80 (15) 793 Depreciation & Amortisation 114 154 99 15 507 Total 14,148 14,784 12,599 12 55,678 PROFIT Profit Before Tax Profit After Tax 13,001 13,496 11,255 16 50,065 9,712 9,957 8,408 16 37,222 20#22EQUITY Strong Capital Base Networth Jun-21 Mar-21 Ⓡ Muthoot Finance (in millions) Jun-20 Equity Share Capital 4,012 4,012 4,010 Other Equity 149,830 148,377 119,151 Total 153,842 152,389 123,161 21#23ASSETS Core focus continues to be gold loan Gross Loan Assets under management* Gross loan assets under management Jun-21 Mar-21 В Ⓡ Muthoot Finance Jun-20 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) 526,138 526,223 412,957 27 0 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 520,686 519,266 404,949 29 0 5,452 6,957 8,008 (32) (22) 22 22#24LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Jun-21 Mar-21 Jun-20 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures (Muthoot Gold Bonds) 2,524 2,635 3,023 (17) (4) Secured Non-Convertible Debentures- Listed 133,057 135,656 90,110 48 (2) Borrowings from Banks/Fls 208,484 198,331 156,452 33 5 External Commercial Borrowings- Senior secured Notes 74,330 73,111 75,583 (2) 2 Subordinated Debt Subordinated Debt -Listed 1,720 2,106 2,969 (42) (18) Commercial Paper 43,605 38,540 49,288 (12) 13 Other Loans 14,399 9,817 11,268 28 47 Total 478,119 460,196 388,693 23 4 *Principal amount of Borrowings 23 23#25GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* 520 Ⓡ Muthoot Finance (in billions) 521 519 480 440 408 405 400 360 336 320 288 280 272 260 233 240 216 243 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Mar-21 Jun-21 *Principal amount of gold Loan assets 24#26GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security Ⓡ Muthoot Finance (In tonnes) 200 180 176 171 171 169 165 160 155 142 149 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Mar-21 Jun-21 25#27Pa GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO Muthoot Finance Diversified gold loan portfolio across India (%) 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Mar-21 Jun-21 East 5 6 6 7 7 8 8 9 9 9 9 West 11 13 15 17 18 19 20 19 20 19 19 North 19 22 22 22 23 23 23 23 23 22 22 South 65 59 57 54 52 50 49 49 48 50 50 (in billions) Gold Loan Assets Under Management * Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Mar-21 Jun-21 260 216 233 243 272 288 336 408 405 519 521 *Principal amount of Gold Loan Assets 26#28Pa Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 135 115 95 89.28 88.55 74.97 75 63.69 63.20 66.70 56.93 55.01 50.63 55 35 15 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 *Principal amount of Gold Loan Assets (in millions) 112.10 112.58 Mar-20 Jun-20 Mar-21 Jun-21 27 27#29HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 68 69 65 61 58 60 60 55 54 48 45 43 41 43 42 91 82 98 87 69 70 167 148 Pa Muthoot Finance (in billions) 102 90 77 70 52 52 FY15 FY16 FY17 FY18 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 ■Avg Monthly Disbursement • Strong level of disbursements and collections Avg Monthly Collection 28#30HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 80% 60% 40% 20% 0% FY15 ■ 1m FY16 ■ 2m FY17 ■ 3m FY18 ■4m Collections in 6 months of disbursements made in respective periods A high proportion of gold loan is repaid within first 6 months FY 19 FY 20 ■ 5m ■ 6m 29 20#31Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Jun-21 Mar-21 Jun-20 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Gold Loan assets (in Billions) 521 519 405 407 336 288 272 243 233 Quantity of Gold content in Ornaments held 171 171 165 176 169 155 149 142 131 as Security (Tonnes) Gold Price/gm (₹) 4,283 4,048 4,448 3,955 2,910 2,824 2,725 2,670 2,470 Lender's Perspective Market Price of Gold Content in Ornaments 732 692 734 696 492 438 406 379 324 (in Billions) Margin of safety on loans 29% 25% 45% 42% 32% 34% 33% 36% 28% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards 878 830 881 835 590 526 487 455 389 making charges etc Equity of Borrower in the Gold Ornaments 41% 37% 54% 51% 43% 45% 44% 47% 40% net of loans availed * Above calculations are made on overall portfolio and excludes interest accrued on loans 30#32CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Jun-21 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Mar-19 Gold Loan AUM (in Millions) 520,686 519,266 496,225 462,339 404,949 407,724 335,853 QoQ % change in Gold 0 5 7 14 (1) Loan AUM No. of Loan Accounts 85,24,713 84,10,139 80,32,610 76,24,105 75,79,640 80,22,325 80,62,139 QoQ % change in no.of loan accounts 1 5 5 1 (6) No.of Active customers 52,44,143 51,90,220 50,15,666 48,28,505 47,45,491 49,33,886 47,21,243 QoQ % change in no.of customers 1 3 4 2 (4) 1 31#33CUSTOMER BASE Highly churning customer base (2/2) Above Gold Loan AUM and No. of customers includes: Ⓡ Muthoot Finance Jun-21 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Mar-19 Fresh loans to inactive customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans to New Customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans with new collateral to existing active customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) 315,320 432,320 438,173 395,800 185,351 352,036 380,171 8 8 6 9 4 7 8 20,185 29,170 29,600 27,268 10,547 21,806 20,023 246,220 361,090 388,391 409,037 160,123 346,626 360,251 8 8 5 7 8 3 7 17,299 27,528 29,759 33,388 10,807 25,622 23,148 556,419 756,618 720,583 644,535 364,964 702,566 779,363 11 15 14 13 8 31,522 48,859 46,175 43,390 20,576 14 42,368 17 42,751 32#34YIELD ON LOAN ASSETS AND NIM Yearly 26.00 (%) Quarterly Ⓡ Muthoot Finance (%) 26.00 24.00 23.03 24.00 21.66 22.21 21.63 21.43 22.17 22.35 22.00 22.00 21.66 19.72 20.00 19.31 20.40 20.00 20.27 18.00 18.00 15.52 16.00 15.2914.47 16.00 14.24 14.27 14.00 13.94 12.74 14.00 12.93 11.38 12.00 10.84 10.47 12.00 9.52 10.00 10.27 8.69 10.00 9.42 9.79 7.93 9.25 8.41 8.00 7.16 7.51 6.92 8.00 7.47 7.39 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q1 FY 2022⭑* Q4 FY 2021* Q1 FY 2021* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 33 33#35INTEREST SPREAD Yearly 26.00 (%) Quarterly Muthoot Finance (%) 26.00 24.00 23.03 24.00 22.21 22.17 21.66 21.43 21.63 22.35 22.00 20.27 22.00 21.66 19.31 19.72 20.40 20.00 20.00 18.00 18.00 16.00 16.00 14.04 13.45 13.49 14.00 13.50 12.42 14.00 11.88 12.63 13.27 12.21 12.00 10.93 10.90 10.80 12.00 10.53 10.00 9.24 9.00 8.99 8.39 8.38 8.92 8.76 868 10.00 9.08 8.19 8.16 8.00 8.00 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* *Under IND-AS Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread 34#36RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 (%) Quarterly 10.00 Ⓡ Muthoot Finance 8.00 7.00 6.31 6.36 6.00 5.00 4.05 4.47 4.00 3.22 9.00 8.11 7.99 8.10 8.00 7.73 7.38 7.00 6.00 5.00 4.00 3.32 3.03 3.00 T 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* *Under IND-AS 55 35 (%)#37IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Jun-21 Mar-21 Jun-20 Stage III Loan Assets 6,408 4,641 10,553 % Stage III Assets on Gross Loan Assets 1.22 0.88 2.56 ECL Provision on Gross Loan Assets 6,501 6,257 5,538 ECL Provision as % of Gross Loan Assets 1.24 1.19 1.34 Excess Provision outstanding in books 2,954 2,954 2,954 Staging Criteria Stage Stage 1 Stage 2 Stage 3 PD-Probability of default Bad Debts Description 0-30 days past due > 30 to <= 90 past due > 90 days past due LGD-Loss given default Provision Mechanism PD X LGD x Stage 1 Asset PD x LGD x Stage 2 Asset LGD x EAD of Stage 3 Asset EAD-Exposure at Default (in millions) Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 Bad Debts Written Off 91 53 28 118 % of Bad Debts written off to Gross Loan Assets 0.02 0.01 0.01 0.02 36#38LIABILITY MIX Maintaining a diversified funding profile* (%) 16 9 3 44 *Principal amount of Borrowings 28 (As of June 30, 2021) Ⓡ Muthoot Finance Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 2,524 mn (1%) Secured Non-Convertible Debentures - Listed - 133,057 mn (28%) - Borrowings from Banks/Fis - 208,484 mn (44%) External Commercial Borrowings- Senior secured Notes - 74,330 mn (16%) Subordinated Debt - 0mn (0%) ■Subordinated Debt - Listed 1,720 mn (0%) - Commercial Paper - 43,605 mn (9%) Other Loans - 14,399 mn (3%) 37 37#39DOMESTIC CREDIT RATINGS Highest Rating among gold loan companies Short-term Rating Rating COMMERCIAL PAPER CRISIL RATINGS CRISIL A1+ ICRA LIMITED ICRA A1+ BANK LOANS ICRA LIMITED Long-term Rating Indicates Ⓡ Muthoot Finance ICRA A1+ Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk SUBORDINATED DEBT Rating CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED ICRA AA+(Stable) BANK LOANS ICRA LIMITED ICRA AA+(Stable) Indicates High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk 38#40Ⓡ INTERNATIONAL CREDIT RATINGS Muthoot Finance Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB (Stable) S&P GLOBAL RATINGS BB (Negative) MOODY'S INVESTORS SERVICE Ba2 (Stable) An elevated vulnerability to default risk, particularly in the event of adverse change in business or economic condition over time, however, business or financial flexibility exists that supports the servicing of financial commitments. Less vulnerable in the near-term but faces major ongoing uncertainities to adverse business, financial and economic conditions. Obiligations are judged to be speculative and are subject to substantial credit risk. The modifier 2 indicates a midrange ranking 39 39#41BREAK-UP OF TOTAL INCOME Interest Income Yearly 140,000 120,000 Quarterly Ⓡ Muthoot Finance (in millions) 140,000 103,285 120,000 100,000 85,644 100,000 80,000 60,000 53,641 49,077 42,703 48,130 56,546 62,021 67,570 80,000 60,000 40,000 40,000 26,837 27,891 23,160 20,000 20,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* Other Than Interest Income Yearly (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 2,000 1,584 1500 1,310 1,236 1,500 921 1000 620 1,000 543 694 500 397 390 230 500 312 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* *Under IND-AS 40#42Ⓡ OPERATING EXPENSES TO AVERAGE LOAN ASSETS Muthoot Finance Operational efficiency over the years Yearly (%) Quarterly (%) 8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 5.63 6.00 5.43 5.50 5.10 5.50 5.01 4.89 4.94 5.00 5.00 4.46 4.50 4.08 3.92 4.50 4.00 4.00 3.99 3.65 3.50 3.50 3.00 3.21 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* 2.50 Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* *Under IND AS 41#43BREAK-UP OF OPERATING EXPENSES Yearly Ⓡ Muthoot Finance (in million) Quarterly (in millions) Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Q1 FY Q4 FY Q1 FY 2022* 2021* 2021* Employee Benefit Expenses 9,270 9,657 8,415 7,393 7,280 6,418 6,304 5,917 5,453 2,246 2,209 2,282 Rent 2,189 2,158 1,974 1,913 1,808 1,713 1,650 1,542 1,309 605 607 429 Advertisement & Publicity 1,190 1,163 1,056 720 531 626 651 702 579 209 380 142 Communication Costs 387 355 368 404 372 378 371 364 243 104 99 75 Traveling and 210 273 240 182 186 187 212 190 175 49 71 32 Conveyance Printing and Stationery 151 177 153 136 129 144 160 185 168 33 Repairs and Maintenance 276 283 280 304 362 290 281 272 256 121 32 39 22 58 58 Legal and Professional 387 260 203 154 124 93 189 216 86 48 72 122 Charges Business Promotion 369 720 481 209 201 149 140 279 332 44 41 84 115 Expenses Directors Remuneration 793 633 561 431 362 196 192 192 192 68 551 80 Depreciation and 507 431 421 439 482 575 841 475 454 114 154 99 Amortisation Expenses Others 2,075 1,677 1,260 2,970 835 1,014 733 731 550 351 836 282 Provision For Standard & 2,647 1,223 180 214 765 NPA Assets Impairment on Financial 950 957 instruments Total 18,754 18,744 259 15,670 316 337 111 146 15,571 15,319 13,006 11,904 11,279 10,562 4,326 5,271 3,884 *Under IND-AS 42#44BREAK-UP OF OPERATING EXPENSES Yearly Ⓡ (%) Muthoot Finance Quarterly (%) Mar-21 Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13: 2022 Q1 FY Q4 FY Q1 FY 2021* 2021* Employee Benefit Expenses 49 52 54 47 48 49 53 52 52 Rent 12 12 13 12 12 13 14 14 12 Advertisement & Publicity 6 7 5 3 5 00 150 6 LO 5 215 42 59 14 12 11 7 4 Communication Costs 2 2 2 3 2 3 3 3 2 2 2 2 Traveling and Conveyance 1 1 2 1 1 1 2 2 2 1 1 1 Printing and Stationery 1 1 1 1 1 1 1 2 2 1 1 1 Repairs and Maintenance 1 2 2 2 2 2 2 3 1 1 Legal and Professional 2 1 1 1 1 1 2 2 1 1 1 3 Charges Business Promotion 2 4 3 1 1 1 1 2 3 1 2 3 Expenses Directors Remuneration 4 3 3 2 2 2 2 2 2 10 2 Depreciation and 3 2 3 3 3 4 + 3 3 3 Amortisation Expenses Others 12 9 19 5 8 00 6 6 5 16 7 Provision For Standard & 17 9 2 2 7 NPA Assets Impairment on Financial 5 5 2 2 8 2 4 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 43#45Ⓡ PROFITABILITY RATIOS Yearly (%) (Based on Income) Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Interest expense to Gross Income 34.92 32.00 32.51 30.50 39.92 46.31 48.71 53.08 52.34 36.18 Muthoot Finance Quarterly Q1 FY 2022* (%) Q4 FY 2021* Q1 FY 2021* 33.64 36.53 Selling, general and administrative expenses to Net Income 25.13 29.26 32.24 28.93 34.88 41.36 48.26 44.66 35.89 22.37 26.67 24.04 Provisions & Write Offs to 1.38 1.61 0.59 5.44 8.16 6.20 1.67 1.89 3.49 1.94 0.59 0.96 Net Income Operational expenses to 26.51 30.87 32.84 34.38 43.03 47.56 49.93 46.55 39.37 24.31 27.27 25.00 Net Income OPBDT/Net Income 73.49 69.13 67.16 65.62 56.97 52.44 50.06 53.45 60.62 75.69 72.73 75.00 Depreciation to Net Income 0.74 0.73 0.90 1.00 1.33 2.13 3.72 2.03 1.76 0.66 0.82 0.65 OPBT/Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 75.03 71.91 74.34 PBT/Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 75.03 71.91 74.34 PAT Net Income 54.09 50.88 42.47 40.38 34.17 30.93 30.23 33.60 39.11 56.05 53.05 55.54 *Under IND-AS 44#46Ⓡ PROFITABILITY RATIOS Yearly (Based on Average Loan Assets) Interest income to avg. loan assets (%) Muthoot Finance Quarterly (%) Q1 FY Q4 FY Q1 FY Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 2022* 2021* 2021* 22.17 23.03 21.63 22.21 21.43 19.72 19.30 20.27 21.66 20.40 21.66 22.35 Interest expense to avg. loan assets 7.93 7.51 7.16 6.92 8.69 9.25 9.52 10.84 11.38 7.47 7.39 8.41 Net Interest Margin 14.24 15.52 14.47 15.29 12.74 10.47 9.78 9.42 10.27 12.93 14.27 13.94 Other income to avg. loan assets 0.53 0.43 0.40 0.47 0.35 0.25 0.25 0.16 0.09 0.24 0.30 0.67 Net Income Including Other 14.77 15.95 14.87 15.76 13.09 10.72 10.03 9.59 10.37 13.17 14.58 14.61 Income Selling, general and administrative expenses to 3.72 4.68 4.81 5.32 4.56 4.43 4.84 4.28 3.72 2.95 3.90 3.51 avg. loan assets Provisions and write offs to 0.20 0.26 0.08 0.11 1.07 0.67 0.17 0.18 0.36 0.26 0.09 0.14 avg. loan assets PBDT to avg. loan assets 10.85 11.01 9.98 10.33 7.45 5.62 5.02 5.12 6.28 9.97 10.59 10.96 Depreciation to avg. loan assets 0.10 0.11 0.12 0.15 0.17 0.23 0.37 0.20 0.18 0.08 0.11 0.10 PBT to avg. loan assets 10.75 10.90 9.85 10.19 7.28 5.39 4.65 4.93 6.10 9.88 10.48 10.86 Tax to avg. loan assets 2.76 2.79 3.54 3.82 2.81 2.08 1.62 1.71 2.05 2.50 2.75 2.75 PAT to avg. loan assets 7.99 8.11 6.31 6.36 4.47 3.32 3.03 3.22 4.05 7.38 7.73 8.11 Cash Profit to avg. loan assets 8.09 8.22 6.44 6.51 4.65 3.54 3.40 3.42 4.24 7.46 7.84 8.21 *Under IND-AS 45#47PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT Quarterly PBT PAT 55,000 50,065 50,000 45,000 45,000 40,000 40,000 40,574 37,222 35,000 35,000 30,768 30,000 30,000 28,447 30,183 25,000 25,000 19,210 20,000 20,000 15,114 13,168 19,721 15,000 17,776 15,000 11,936 13,001 13.496 10,279 11,255 10,042 10,000 11,798 9,712 9,957 7,801 10,000 8,408 8,096 5,000 6,705 5,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* *Under IND-AS 46#48NETWORTH Steady capital position Share Capital and Reserves & Surplus 170,000 160,000 Ⓡ Muthoot Finance (in millions) 153,842 152,389 150,000 140,000 130,000 123,161 120,000 115,718 110,000 97,928 100,000 90,000 80,000 78,120 65,164 70,000 60,000 56,192 50,835 50,000 37,356 42,646 40,000 30,000 20,000 10,000 0 Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Jun-20* Mar-21* Jun-21* *Under IND-AS 47#49RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 55 50 555 55 50 45 45 40 40 35 35 28.16 30.15 28.26 30 30 27.77 25.37 27.08 24.81 25 22.40 25 20 19.50 19.44 20 15 14.35 15.13 15 10 5 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20* Mar 21* 0 Q1 FY 2022* Q4 FY 2021* Q1 FY 2021* *Under IND-AS 48#50Ⓡ CAPITAL RATIO Maintaining capital well above the statutory requirement Muthoot Finance Capital Adequacy Ratio Capital Adequacy Ratio Tier-I Tier-ll (%) Jun-21 Mar-21 Jun-20 27.32 27.39 26.30 26.26 26.31 25.20 1.06 1.08 1.10 49 49#51MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Earnings per share (7) - Basic - Diluted Q1 FY 2022 Q4 FY 2021 Ⓡ Muthoot Finance Q1 FY 2021 FY 2021 24.21 24.81 20.96 92.79 24.18 24.80 20.94 92.71 Jun-21 Mar-21 Jun-20 383.33 379.70 306.99 Book Value per share (*) Market price per share (*)* ** 1,481.65 1,205.90 1,086.05 Price to Earnings ratio* *** 15.43 13.00 13.08 Price to Book Value ratio 3.87 3.18 3.54 **Source: www.nseindia.com ***Based on trailing 12 months EPS 50 50#52CAPITALISATION RATIOS Headroom for further leveraging Jun-21 Mar-21 Ⓡ Muthoot Finance (In millions) Jun-20 Outside Liabilities 499,827 482,260 404,561 Cash & Bank Balances & Investment in MF liquid 82,492 71,308 84,769 Funds Tangible Networth 153,791 152,335 123,113 Capital Gearing 2.71 2.70 2.60 51#53TEAM STRENGTH Ⓡ Muthoot Finance Groomed human capital over the years to meet growing business requirements 27000 26000 25012 24881 25000 24000 23000 22000 21000 22882 22781 24205 24224 23455 (No. of Employees) 25911 25554 25430 25397 20000 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Mar-21 Jun-21 52 52#54OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 53#55ASIA ASSET FINANCE PLC - AN OVERVIEW Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance on December 31, 2014. As on June 30,2021, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 14,289 million as on June 30, 2021 AAF is a Registered Financial Company based in Sri Lanka a fully licensed, deposit-taking institution. registered with the Central Bank of Sri Lanka and listed in the Colombo Stock Exchange AAF is in lending business since 1970. At present the company is involved in Retail Finance, Hire Purchase & Business Loans and has 48 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka. 54#56Ⓡ PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance o Fixed Deposits ○ Leasing o Business Loan o Personal Loan o Group Personal Loan o Corporate Loans ○ Mortgage Loans 。 Factoring ○ Short Term Loans ○ Micro Finance o Loan against Gold Jewellery 55#57Ⓡ BRANCH NETWORK ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients Chankanai Jaffna Kilinochichi Vavuniya Udappuwa Mahiyanganaya Kegalle Ragala Puttalam Chilaw City office Wennappuwa Negombo Nawalapitiya Moratuwa Gampola Galle Kalutara (SC) Mathugama Chunnakam Nelliyadi Point Pedro Chavakachcheri Mullaitivu Puthukkudiyiruppu Oddusuddan Sammanthurai Trinco Kinniya Valaichcenai Digana Chenkaladi Batticaloa Matale Kurunegala Gampaha Chavakachcheri Colombo Hatton Kaluwanchchikudi Matara Pundoloya Thalawakele Beruwala Badulla Kalmunai Akkaraipattu Monaragala 56#58Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance Key Financial Parameters Particulars Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 INR/LKR 0.3722875 0.3677855 0.40386 (LKR in millions) FY 2021 0.3677855 Number of branches 48 48 29 48 Number of Employees 425 427 461 427 Gross Loan AUM (LKR) 14,289 14,002 13,481 14,002 Capital Adequacy Ratio (%) 14 17 16 17 Total Revenue (LKR) 678 785 697 2,952 Total Expense (LKR) 650 743 714 2,865 Profit Before Tax (LKR) 28 42 (17) 87 Profit After Tax (LKR) 10 28 (17) 45 Shareholders Funds (LKR) 2,232 2,222 2,155 2,222 Total Outside Liabilities (LKR) 13,829 13,128 12,502 13,128 Total Assets (LKR) 16,061 15,350 14,657 15,350 57#59OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 58 598#60Ⓡ MUTHOOT HOMEFIN - AN OVERVIEW Muthoot Homefin Muthoot Finance பிம், Muthoot Homefin (India) Limited is a Housing Finance Company registered with The National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd in Aug'17. MHIL focuses on extending affordable housing finance and targets customers in Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in Tier II & Tier III locations. It operates on a 'Hub and Spoke' model, with the centralised processing at Corporate Office at Mumbai. MHIL has operations in Kerala, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chandigarh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Punjab, Delhi, Tamil Nadu, Chattisgarh and Pondicherry. As on June 30, 2021, it has a loan portfolio of Rs.17,048 million. ICRA and CARE assigned Short Term Debt Rating of ICRA A1+ and CARE A1+ respectively for its Commercial Paper. CRISIL assigned Long Term Debt Rating of CRISIL AA+/Stable for its bank limits and Non Convertible debentures. 59#61Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 Number of branches 108 108 107 108 Number of Sales Offices 108 108 107 108 Number of Employees 260 301 344 301 Gross Loan AUM (R) 17,048 17,042 19,787 17,042 Capital Adequacy Ratio (%) 53 50 47 50 Total Revenue (*) 460 742 588 2,409 Total Expense (*) 453 675 582 2,240 Profit Before Tax () 7 67 6 169 Profit After Tax (*) 5O 50 126 Shareholders Funds (*) 4,392 4,387 4,264 4,387 Total Outside Liabilities (*) 11,014 12,397 15,062 12,397 Total Assets (₹) 15,406 16,784 19,326 16,784 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 Disbursement (R) 557 155 613 1,010 Borrowings () 10,531 11,846 14,712 11,846 Debt Equity Ratio (%) 2.4 2.7 3.44 2.7 Yield on Advances (%) 12.26 12.64 13.04 12.51 Interest Spread (%) 3.83 3.83 3.64 3.41 NIM (%) 5.50 5.79 5.52 5.13 Cost to Income Ratio (%) 47.50 54.72 43.47 42.16 Return on Assets (ROA) (%) 0.14 1.28 0.09 0.75 Return on Equity (ROE) (%) 0.43 4.63 0.38 2.92 Stage III Loan Assets 1,012 681 337 681 % Stage III assets on Gross Loan Assets 5.94 4.00 1.70 4.00 (AUM) Stage III ECL Provision 309 207 241 207 ECL Provision 361 261 309 261 ECL Provision as a % of Gross Loan 2.12 1.53 1.56 1.53 Assets (AUM) Number of Customers 22,421 22,765 24,088 22,765 61#63Financial Highlights Growth Drivers Profitability Opportunities • . • • Ⓡ Muthoot Homefin Muthoot Finance Disbursements in Q1 FY 2022: Rs 557 mn. AUM as on June 30, 2021: Rs. 17,048 mn, Loan Book as on June 30, 2021: Rs 14,132 mn. Average Ticket Size in Q1 FY 2022: Rs. 0.90 mn Business Presence: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Kerala, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Chandigarh, Delhi, Punjab, Tamil Nadu, Chattisgarh and Pondicherry Presence in 108 locations ROA for Q1 FY 2022: 0.14%, ROE for Q1 FY 2022: 0.43% Average cost of borrowings of 8.43% for Q1 FY 2022. Capital Adequacy Ratio: 52.50%, Debt Equity Ratio: 2.40 Average Yield: 12.26%, Interest Spread: 3.83% . Received PMAY subsidy of INR 68 mn for 509 cases in Q1 FY 2022. • • Increasing the leverage from 2.40x currently will help to improve the ROE Higher credit rating will help in raising funds at competitive rates. Strong liquidity in Group's balance sheet, along with its free cash flows to fund the capital requirements Established corporate brand name among borrower segment, superior customer servicing capabilities and effective loan recovery mechanisms Tier II/III cities focused distribution network with a in-house sales team along with cross-sale to the existing gold loans customers of the group Long Term Rating from CRISIL AA+/Stable which indicates low risk will help in lower cost of funds. Short Term Rating : ICRA A1+ / CARE A1+ Debt/Equity ratio at 2.40 times as on June 30, 2021, indicates ample scope for financial leverage to increase ROE Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex Our focus segment, "affordable housing finance" is the centered around the Government initiative of "Housing for All" by 2022 Government promoted schemes such as PMAY-CLSS will benefit the end consumers. Huge shortfall for housing units in EWS / LIG segment in India Attraction of builders to the construction of affordable housing due to Infrastructure status given in Union Budget Increase in affordability driven by sustained GDP growth rate and stable property prices. Decrease in average members per household and emergence of nuclear families Increase in workforce to be driven by expected bulge in working age population Increasing urbanization led by rural-urban migration and reclassification of rural towns 62#64OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 63#65Muthoot Insurance Brokers Muthoot Finance MUTHOOT INSURANCE - AN OVERVIEW HEALTH INSURANCE MIBPL became a wholly owned subsidiary of Muthoot Finance Ltd in Sep 2016. MIBPL is an unlisted private. limited company holding a licence to act as Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies. During Q1 FY22, it has insured more than 343,500 lives with a First year premium collection of Rs.305 million under Traditional, Term and Health products.. During Q1 FY21, it has insured more than 135,000 lives with a First year premium collection of Rs. 182 million under Traditional, Term and Health products.. 19 64 Ⓡ#66Key Business Parameters Particulars Premium Collection (*) Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 606 1,479 443 4,055 Number of Policies 353,967 12,24,866 142,421 32,23,737 Key Financial Parameters (in millions) Particulars Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 Total Revenue (*) 69 142 64 467 Total Expense (*) 11 11 9 43 Profit Before Tax (R) 58 131 56 424 Profit After Tax (*) 43 97 42 316 Shareholders Funds () 890 847 572 847 Earnings per share (*) 57 130 56 422 65#67OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 66#68Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of March 2021, Muthoot Finance holds 70.01% in BML. BML was incorporated on January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as "NBFC-MFI" by RBI effective from 11th December 2013. BML was acquired by the 'Hand in Hand' group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by 'Hand in Hand's' Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGs, 22 members for INR 0.20 mn. In the last twelve years of its operations, BML primarily relied on taking over the existing groups formed by Hand in Hand India. BML predominantly follows the SHG model of lending. Effective January 2015, BML started working in JLG model of lending in Pune district, Maharashtra. As of June 30, 2021, BML operations are spread over 18 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Haryana, Punjab, Jharkhand, Uttarakhand,West Bengal, Tripura and Delhi. It has 651 branches, with 170 controlling regional offices and employs 4651 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 30,721 mn in June 2021 67#69Key Financial Parameters Ⓡ Muthoot Finance (in millions) Particulars Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 Number of Branches 651 649 603 649 Number of Employees 4,651 4,562 4,197 4,562 Gross Loan AUM (7) 30,721 32,999 25,754 32,999 Capital Adequacy Ratio (%) 23 22 26 22 Total Revenue (*) 1,635 1,641 1,171 5,532 Total Expense (*) 1,616 1,511 983 4,962 Profit Before Tax () 19 130 188 570 Profit After Tax (*) 20 117 145 467 Stage III Loan Assets 1,126 783 287 783 % Stage III assets on Gross Loan Assets 3.67 2.37 1.11 2.37 (AUM) Stage III ECL Provision 742 618 284 618 ECL Provision 1,273 980 418 980 ECL Provision as a % of Gross Loan Assets 4.14 2.97 1.62 2.97 (AUM) Shareholders Funds (7) 5,431 5,417 5,131 5,417 Total Outside Liabilities (*) 25,832 29,256 23,454 29,256 Total Assets (7) 31,263 34,673 28,585 34,673 68#70OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 69#71MUTHOOT MONEY-AN OVERVIEW Muthoot Money Muthoot Finance Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. As on 30th June, 2021 it has a total loan portfolio of Rs.3,326 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 70 10#72Key Financial Parameters Particulars Number of branches Number of Employees Muthoot Money Muthoot Finance (in millions) Q1 FY 2022 Q4 FY 2021 Q1 FY 2021 FY 2021 11 14 18 14 143 188 245 188 Gross Loan AUM (*) 3,326 3,668 4,966 3,668 Capital Adequacy Ratio (%) 33 29 21 29 Total Revenue (*) 106 157 198 697 Total Expense (*) Profit Before Tax (7) 108 148 193 656 (2) 9 LO 5 41 Profit After Tax (*) (1) 4 (25) 37 Stage III Loan Assets 627 314 180 314 % Stage III assets on Gross Loan Assets 18.85 8.56 3.62 8.56 (AUM) Stage III ECL Provision 152 129 170 129 ECL Provision 189 172 192 172 ECL Provision as a % of Gross Loan Assets 5.68 4.69 3.87 4.69 (AUM) Shareholders Funds (*) 1,099 1,099 1,037 1,099 Total Outside Liabilities (*) 2,207 2,789 4,161 2,789 Total Assets (₹) 3,306 3,888 5,198 3,888 71#73OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth Ⓡ Muthoot Finance (In millions) Q1 FY 2022 Q1 FY 2021 FY 2021 1,076 MUTHOOT TRUSTEE PRIVATE LIMITED Networth 1,063 1,072 (In millions) Q1 FY 2022 Q1 FY 2021 FY 2021 10 10 10 72#74Ba Muthoot Finance REGISTERED OFFICE 2nd Floor, Muthoot Chambers Opposite Saritha Theatre Complex Banerji Road, Kochi Kerala 682 018. India - Tel: (91484) 2394712 Fax: (91484) 2396506 CIN: L65910KL1997PLC011300 RBI Reg No: N 16.00167 EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com