#1SHRIRAM City MONEY WHEN YOU NEED IT MOST Investor Update - Q4 & FY 22 (March 2022) SHRIRAM HOUSING FINANCE#2Key Highlights - Consolidated (Shriram City Union Finance Ltd. & Shriram Housing Finance Ltd.) 2 Disbursements Rs. 8645 Cr for Q4 and Rs. 28879 Cr for FY22 Highest-ever lending performance Cross-sell Initiatives SHRIRAM City MONEY WHEN YOU NEED IT MOST Cross-selling initiatives by SHFL in Gujarat commenced Assets Under Management Rs. 38541 Cr YOY growth of 15% Collection Efficiency In excess of 100% Progressively Improved Collection Efficiency through the year Expansion of Digital Initiatives Express Two Wheeler loans (SCUF) Contactless Personal Loans (SCUF) Cloud migration, Cross-sell App, DigiLocker, VoiceBOT, Scorecards (SHFL) SHRIRAM HOUSING FINANCE#33 Disbursement & Assets Under Management - Consolidated DISBURSEMENTS 8398 8645 7575 768 1118 1005 7630 7527 6570 Mar-21 Dec-21 SCUF SHFL ASSETS UNDER MANAGEMENT 38541 36853 SHRIRAM City MONEY WHEN YOU NEED IT MOST 28879 49.26% 33500 2739 4606 5355 19348 3929 2194 17154 32247 33186 26140 29571 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 SCUF SHFL SCUF SHFL Rs. Crores SHRIRAM HOUSING FINANCE#4Key Performance Highlights - Consolidated Assets Under Management SHRIRAM City MONEY WHEN YOU NEED IT MOST Rs. Crores Income from Operations Net Interest Income Pre Provision Profits Profit After Tax Mar 22 38541 1900 1135 629 326 4 15.5 10.5 12.1 15.0 18.9 % % % % % Mar 21 33500 1598 983 569 296 Mar 22 38541 1900 1135 629 326 3.2 4.6 2.1 0.4 1.2 % % % % % Dec 21 36853 1860 1140 650 322 FY 22 38541 7080 4267 2469 1166 15.0 % 14.8 14.8 0.3 8.7 % % % FY 21 33500 6166 3825 2462 % 1073 SHRIRAM HOUSING FINANCE#5Branch Network 5 Shriram City Union Finance Ltd. Shriram Housing Finance Ltd. SHRIRAM City MONEY WHEN YOU NEED IT MOST STATE BRANCHES STATE BRANCHES STATE BRANCHES Tamil Nadu 261 Bihar 12 Tamil Nadu 21 Andhra Pradesh 183 West Bengal 10 Gujarat 14 Karnataka 14 Telangana 130 Uttarakhand 8 Andhra Pradesh & Telangana 13 Maharashtra 94 Himachal Pradesh 00 6 Maharashtra 12 Karnataka 57 Odisha 5 Rajasthan 9 Uttar Pradesh 54 Puducherry 5 Madhya Pradesh 7 Gujarat 30 Jharkhand 3 Uttar Pradesh 3 Madhya Pradesh Kerala 2 26 Delhi 2 Punjab 2 Rajasthan 25 Goa 2 West Bengal 2 Kerala 22 Chandigarh 1 Chhattisgarh 2 Punjab 21 Jammu & Kashmir 1 Uttarakhand 1 986 TOTAL BRANCHES Delhi 1 Chhattisgarh 15 TOTAL BRANCHES 103 EMPLOYEE COUNT 27997 Haryana 13 EMPLOYEE COUNT 787 SHRIRAM HOUSING FINANCE#6Shareholders Profile 6 Mutual Funds with 1% and above 2.81% Other Fils / FPIS with 1% and above 15.45% Piramal Enterprises Ltd. 9.88% SHRIRAM CITY Others 14.69% SHRIRAM HOUSING Shriram Capital Ltd., SOT & Shriram Ventures 34.61% Valiant Mauritius Partners Ltd. 14.98% Dynasty Acquisition FPI Ltd. & Arkaig Acquisition FPI Ltd. ("Apax") 22.56% SHRIRAM City MONEY WHEN YOU NEED IT MOST Shriram City Union Finance Ltd. 85.02% SHRIRAM HOUSING FINANCE#77 Recognition and Awards BFSI TECHNOLOGY EXCELLENCE AWARDS 2022 (expleo) QUANTIC Think bold, art reliable S m City Union Firo SHRIRAM City MONEY WHEN YOU NEED IT MOST . • SCUF won the award for 'NBFC Innovative Product of the Year' for its 'Express Two- Wheeler Loans' product at the BFSI Technology Excellence Awards 2022 Express Two-Wheeler Loans facilitate hassle-free, paperless, 24X7 applications for two-wheelers loans, wherein sanction letters are issued in less than 5 minutes for loans up to 100% of the on-road price. The loan is disbursed in under 24 hours post the approval of the application allowing Shriram Finance to offer the fastest two- wheeler loans in India. SHFL won the award for 'Fastest Growing NBFC of the Year' at the BFSI Technology Excellence Awards 2022. SHFL won the award for its remarkable growth over the last fiscal year. The company has tripled its AUM from INR 1500 crore to over INR 5000 crore in the last three years. SHFL has been certified as a Great Place to Work by Great Place to Work® Institute, India from Feb 2022 to Feb 2023 3RD ANNUAL BFSI TECHNOLOGY EXCELLENCE AWARDS 2022 (expleo) QUANTIC Think bold, act reliable ram Housin nance Great Place To WorkⓇ Certified FEB 2022 - FEB 2023 INDIA TM SHRIRAM HOUSING FINANCE#8Update on the proposed Merger SHRIRAM City MONEY WHEN YOU NEED IT MOST Pursuant to the meeting of the Company's Board of Directors on 13th December 2021 approving the amalgamation of the Company with M/s Shriram Transport Finance Co. Ltd., we have approached the appropriate authorities for the regulatory approvals thereof. 8 Accordingly, the Company has received in-principle approvals from BSE Ltd and National Stock Exchange Ltd. under Regulation 37 of SEBI LODR. The Company has approached National Company Law Tribunal, Chennai ("NCLT") for being permitted to convene a meeting of shareholders as well as of secured- and unsecured creditors with a view to obtain their approval for the merger. We now await the listing of our Application for Hearing at NCLT. The process of obtaining all other regulatory approvals as applicable is proceeding as scheduled. The merger will stand effective after obtaining NCLT approval. SHRIRAM HOUSING FINANCE#99 SHRIRAM City MONEY WHEN YOU NEED IT MOST Standalone Numbers#10Executive Summary SHRIRAM City MONEY WHEN YOU NEED IT MOST Loans disbursed: Rs. 26140 Cr in FY22 versus Rs. 17154 Cr in FY21, a growth of 52.4%. These have been our best ever disbursements in a Financial Year. 10 Assets Under Management: Growth traction continued, with AUM of Rs. 33186 Cr as on 31st March'22 versus Rs. 32247 Cr as on 31st Dec 21 and Rs. 29571 Cr as on 31st March'21. AUM growth: 12% YOY and 2.9% QOQ. Best ever profitability metrics: PBT of Rs. 418 Cr. and PAT of Rs. 303 Cr. in Q4FY22 are our highest ever, as are PBT of Rs. 1461 Cr. and PAT of Rs. 1086 Cr. in FY22. Improved yields: Loan yields grew to 20.81% in FY22 versus 19.57% in FY21. Our FY22 yields are our highest in six years. Highest ever interest income: Rs. 6531 Cr in FY22 and Rs. 1751 Cr in Q4FY22, which is our best ever. Interest income in FY21 was Rs. 5738 Cr. Net Interest Margin for FY22 was 12.74% compared to 12.29% in FY21. Covid-related provisioning at the end of Q4FY22 stood at Rs. 426 Cr. SHRIRAM HOUSING FINANCE#11Executive Summary (contd.) 11 SHRIRAM City MONEY WHEN YOU NEED IT MOST Overall borrowings as on 31st March'22 stood at Rs. 30632 Cr. versus Rs. 29747 Cr. in Dec'21 and Rs. 25565 Cr. in March'21. Our Fixed Deposit base stood at Rs. 6828 Cr., a growth of 23.5% YOY. Liquidity back up in form of free cash & bank balances stood at Rs. 5235 Cr. as of March'22. Sanctioned and Undrawn limits stood at Rs. 556 Cr. Comfortable ALM position with nil negative mismatch on cumulative basis across future timelines. Net Worth stood at Rs. 8728 Cr. Improved asset quality: GNPA for Q4FY22 was 6.31% versus 7.30% in Q3FY22 (both figures are per RBI's November 2021 Circular). Improved credit costs: Down from 2.79% in Q3FY22 and 2.25% in Q4FY21 to 2.15% in Q4FY22. Also improved from 2.90% in FY21 to 2.83% in FY22. Collection Efficiency was at 103% in January and February'22, and 111% in March'22. Q4 Collection Efficiency was 106%. SHRIRAM HOUSING FINANCE#12Disbursements for the Quarter PO TW Rs. 275 Cr. 4% 12 MAR 21 Rs. 6570 Cr LAP Rs. 189 Cr. 3% Gold loans Rs. 1786 Cr. 27% Two Whir Rs.1540 Cr 24% Auto Loans Rs. 153 Cr. 2% PO TW Rs. 253 PL Rs. 812 Cr. Cr 3% MSME Rs. 1815 Cr. 12% 28% DEC 21 Rs. 7630 Cr. Gold loans Rs. 1676 Cr 22% LAP Rs. 191 Cr. 3% Two Whlr Rs. 2238 Cr 29% Auto Loans MSME Rs. PL Rs. 1136 Cr. Rs. 157 Cr. 2% PO TW Rs. 1979 Cr. 15% 238 Cr. 3% 26% MAR 22 SHRIRAM City MONEY WHEN YOU NEED IT MOST Rs. 7527 Cr. LAP Rs. 233 Cr. 3% Gold loans Rs. 1920 Cr. 26% MSME Rs. 2066 Cr. 28% Two Whir Rs. 1608 Cr. 21% PL Rs. 1289 Cr. 17% Auto Loans Rs. 173 Cr. 2% SHRIRAM HOUSING FINANCE#13Disbursements for the Year 13 FY 2021 Rs. 17154 Cr LAP Rs. 189 Cr. 1% Gold loans Rs. 5926 Cr 35% Two Whlr Rs. 5134 Cr 30% Preowned TW Rs. 914 Cr 5% MSME Rs. 3241 Cr. 19% Preowned TW Rs. PL Rs. 1493 Cr. 9% Auto Loans Rs. 257 Cr. 1123 Cr 4% 1% Y-o-Y Growth: 52.4% FY 2022 Rs. 26140 Cr LAP Rs. 693 Cr. 3% SHRIRAM City MONEY WHEN YOU NEED IT MOST Gold loans Rs. 6532 Cr 25% Two Whir Rs. 6295 Cr 24% MSME Rs. 6972 Cr. 27% PL Rs. 3987 Cr. 15% Auto Loans Rs. 538 Cr. 2% SHRIRAM HOUSING FINANCE#14Assets Under Management 14 SHRIRAM City MONEY WHEN YOU NEED IT MOST Mar 21 Dec 21 Mar 22 Product Segment Value (Rs. % of AUM Value (Rs. % of AUM Value (Rs. % of AUM Cr.) Cr.) Cr.) Small Enterprises Finance 15069 51.0% 14610 45.3% 14718 44.3% Two Wheelers 6885 23.3% 7686 23.8% 7764 23.4% Personal Loans 2007 6.8% 3481 10.8% 4068 12.3% Gold loans 3789 12.8% 4107 12.7% 4078 12.3% Preowned Two Wheelers 1087 3.7% 1102 3.4% 1025 3.1% Auto Loans 546 1.8% 664 2.1% 744 2.2% Loan Against Property 188 0.6% 597 1.9% 789 2.4% Assets Under Management 29571 100.0% 32247 100.0% 33186 100.0% SHRIRAM HOUSING FINANCE#15Borrowings Profile 15 Public Issue NCDs 3% Mar 21 Securitization 13% Public Issue NCDs 1% Dec 21 Securitization 8% Public Issue SHRIRAM City MONEY WHEN YOU NEED IT MOST Mar 22 NCDs 1% Securitization 7% Retail Borrowings Retail Borrowings 22% Retail Rs. 25565 Cr. Bank Borrowings 49% 22% Rs. 29747 Cr. Bank Borrowings 48% Rs. 30632 Cr. Borrowings Bank Borrowings 50% 22% Market Borrowings 13% Market Borrowings 21% Market Borrowings 20% SHRIRAM HOUSING FINANCE#16Borrowings Profile (contd.) 16 CREDIT RATING - LONG TERM ALM Profile SHRIRAM City MONEY WHEN YOU NEED IT MOST Rs. Crores Particulars Total Inflows Total Outflows Mismatch Cumulative Mismatch AA AA AA AA CARE INDIA RATINGS ICRA CRISIL 0-7 days 4195 653 3543 3543 CREDIT RATING - FDS 8-14 days 958 167 791 4333 15-30 days 2321 723 1598 5931 - 1 2 months 2142 664 1477 7408 AA+ ICRA >2 3 months 1953 1022 932 8340 >3 6 months 4654 3310 1344 9684 CREDIT RATING-SHORT TERM >6 12 months 8997 9264 -267 9417 >1-3 years 10980 11820 -840 8578 >3-5 years 3162 3786 -625 7953 A1+ A1+ CARE ICRA > 5 years Total 2786 10892 -8106 -154 42147 42301 -154 SHRIRAM HOUSING FINANCE#17Provisions Analysis 17 As at SHRIRAM City MONEY WHEN YOU NEED IT MOST Provisions Analysis Mar-21 Dec-21 Mar-22 Stage 3 - Gross 1876 2348 2089 Stage 3 ECL Provisions 999 1112 1030 Stage 3 - Net 877 1236 1059 Stage 3 % Gross 6.37% 7.30% 6.31% Stage 3 %-Net 3.08% 3.98% 3.30% Stage 3 Coverage Ratio (%) 53.24% 47.35% 49.28% Stage 1 Gross - 25254 25960 27151 - Stage 1 ECL Provisions 881 809 875 Stage 1 - Net 24373 25151 26276 Stage 1 % Gross 85.71% 80.73% 82.02% Stage 1 ECL Provisions % 3.49% 3.12% 3.23% Stage 2 - Gross 2335 3848 3864 - Stage 2 ECL Provisions 165 199 175 Stage 2 - Net 2170 3649 3689 - Stage 2 % Gross Stage 2 - ECL Provisions % 7.93% 11.97% 11.67% 7.07% 5.18% 4.52% Note: Covid-19 provisions of Rs. 426 Cr. are included in ECL Provisions as mentioned above Rs. Crores SHRIRAM HOUSING FINANCE#18Analysis of Stage 3 - Product wise 18 Stage 3 Gross % Stage 3 Net % SHRIRAM City MONEY WHEN YOU NEED IT MOST Stage 3 ECL % Product Segment Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Small Enterprises Finance 7.26% 8.15% 7.03% 3.00% 4.24% 3.70% 60.50% 50.15% 49.19% Two Wheeler 5.80% 7.08% 6.04% 3.00% 3.84% 3.13% 49.74% 47.60% 49.74% Personal Loans 10.51% 11.28% 9.05% 5.76% 6.17% 3.95% 47.96% 48.24% 58.70% Loan Against Gold 2.86% 2.09% 1.99% 2.73% 2.00% 1.89% 4.86% 4.29% 5.54% Pre Owned Two Wheeler 2.21% 6.50% 6.28% 1.10% 3.61% 3.34% 50.83% 46.16% 48.46% Auto Loans 8.56% 10.38% 9.87% 4.37% 5.77% 5.24% 51.16% 47.11% 49.50% Loan Against Property 0.00% 0.22% 0.47% 0.00% 0.11% 0.23% 0.00% 51.28% 50.51% Total 6.37% 7.30% 6.31% 3.08% 3.98% 3.30% 53.24% 47.35% 49.28% SHRIRAM HOUSING FINANCE#19Key Financial Metrics 19 SHRIRAM City MONEY WHEN YOU NEED IT MOST Rs. Crores Quarter ended Growth FY22 over Particulars FY 2021 FY 2022 FY21 Mar 21 Dec 21 Mar 22 YOY QOQ Assets Under Management 29571 32247 33186 12.2% 2.9% 29571 33186 12.2% Interest Income 1486 1702 1751 17.8% 2.9% 5738 6531 13.8% Interest Expenses 556 649 694 24.8% 6.9% 2134 2533 18.7% Net Interest Income 930 1053 1057 13.7% 0.4% 3604 3998 10.9% Operating Expenditure 378 447 463 22.4% 3.5% 1364 1649 20.9% Pre Provision Profits 552 606 594 7.8% -1.9% 2240 2349 4.8% Provisions & Write offs 164 219 176 7.6% -19.4% 851 888 4.3% Profit Before Tax 388 387 418 7.8% 8.0% 1389 1461 5.2% Taxes 106 94 115 8.5% 21.1% 378 375 -0.9% Profit After Tax 282 293 303 7.6% 3.7% 1011 1086 7.4% SHRIRAM HOUSING FINANCE#20Key Financial Metrics (contd.) 20 20.45% Yield on Assets 21.72% 21.41% 19.57% Mar-21 Dec-21 Mar-22 FY21 Operating Expenses 5.71% 5.66% 5.21% I III Mar-21 4.65% 20.81% 7.65% 8.28% Finance Cost 8.48% ill 7.28% 8.07% 12.80% SHRIRAM City MONEY WHEN YOU NEED IT MOST Net Interest Margin 13.44% 12.93% 12.29% 12.74% FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Pre Provision Profits Credit Costs 7.73% 5.26% 7.60% 7.64% 2.79% 12.90% 2.83% 2.25% 7.48% 2.15% 7.28% Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 SHRIRAM HOUSING FINANCE#21Key Ratios 3.42% Return on Assets (%) 21 3.14% 3.07% |3.10% 2.92% Return on Net worth SHRIRAM City MONEY WHEN YOU NEED IT MOST CRAR & Debt/Equity 28.64% CRAR (%) 28.64% 14.47% Debt/Equity (X) 14.02% 13.84% 27.62% 13.50% 13.06% 3.46 26.78% 3.51 26.78% 3.51 3.23 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Cost to income ratio (%) Earnings Per Share (Rs.) Book Value Per Share (Rs.) 43.78% 42.47% 40.67% 164.16 153.16 1310 1310 1295 41.25% 37.85% 42.73 44.21 45.69 1198 1198 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 FY21 FY22 Mar-21 Dec-21 Mar-22 I FY21 FY22 SHRIRAM HOUSING FINANCE#2222 SHRIRAM HOUSING FINANCE Standalone Numbers#23Executive Summary - SHFL SHRIRAM City MONEY WHEN YOU NEED IT MOST Assets Under Management (AUM): 5000 Cr. Milestone crossed in Q4FY22. AUM as at end of Q4FY22 stands at Rs. 5,355 Cr versus Rs. 3,929 Cr in Q4FY21 and Rs. 4,606 Cr in Q3FY22, representing growth of 36% YOY and 16% QOQ. Disbursements: Q4FY22 disbursals of Rs. 1,118 Cr were the highest quarterly disbursals ever, as against Rs. 1,005 Cr in Q4FY21 and Rs. 768 Cr in Q3FY22 representing a YOY growth of 11% and QOQ growth of 46%. FY22 also clocked highest annual disbursals of Rs. 2,739 Cr representing 25% growth YOY. Portfolio Quality: Lowest 90+ DPD of 0.97% on AUM since inception. Gross Stage 3 Assets also lowest at 1.11% on Loan Book (excl. impact of RBI Circular dated 12th Nov'21). With impact of RBI Circular, Gross Stage 3 Assets are 1.72% on Loan book. Profits: Profit before Tax of 100 Cr.+ recorded in FY'22, first time since inception representing 30% growth YoY. Distribution Network: 100+ branches (additional 21 opened in FY22) represents investment in our distribution network. Post its successful launch in AP/TG across 178 locations (contributing 8% of quarterly Home Loan originations), "Griha Poorti", the initiative launched to leverage on the group's vast distribution network, has now been extended to Gujarat. 22 locations in Gujarat have been activated in Q4FY22, another 18 are in the pipeline and will be activated in Q1FY23. Key features of "Griha Poorti": 100% direct origination, granular portfolio, yield of 13.1% and negligible delinquency. Average ticket size of retail portfolio: Rs. 16.4 Lacs. Home loan yield of 12.0% Collection efficiency of 100.8% in March 2022 Strong liquidity back up of Rs. 1445 Cr. in the form of cash & bank balances and un-availed credit lines Incremental borrowing cost declined by 163 bps YoY to 6.98% for FY22. NHB refinance of Rs. 500 Cr. availed. Comfortable ALM position with nil negative mismatch on cumulative basis 23 SHRIRAM HOUSING FINANCE#24Investments in distribution paying off, trend to continue in FY'23 Quarterly Disbursement Trend Yearly Disbursement Trend SHRIRAM City MONEY WHEN YOU NEED IT MOST Values in Cr. 24 ISHFL Buyout 1,005 Impact of 2nd 366 wave of COVID 768 633 6 46 SHFL Buyout 2,739 202 2,195 2,537 1,118 150 400 1,795 1,127 758 758 221 639 221 627 722 967 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY'18 FY'19 FY'20 FY'21 FY'22 41% growth in Originations; Total disbursals grew by 25% YoY. Highest quarterly disbursement since inception in Q4'22 SHRIRAM HOUSING FINANCE#25AUM grew by 36% YoY on back of strong disbursements 25 Quarterly AUM Trend Yearly AUM Trend SHRIRAM City MONEY WHEN YOU NEED IT MOST Values in Cr. On Book Off Book On Book Off Book 5,355 CAGR 5,355 780 4,606 780 43% 4,255 3,929 503 3,910 3,929 4,575 716 533 4575 513 3890 3722 3426 3397 503 3,426 2,305 1,790 1,848 281 2,024 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 FY18 FY19 FY20 FY21 FY22 Focused growth strategy resulted in AUM crossing 5000 Cr in Feb'22; 43% CAGR over last 3 years SHRIRAM HOUSING FINANCE#26Assets Under Management - SHFL 26 Product Mix @ Portfolio 3929 3910 4255 4606 5355 3.3% 3.9% 4.5% 5.8% 6.3% 28.9% 28.9% 27.5% 27.8% 28.9% 5.4% 5.5% 5.3% 5.3% 5.1% 62.4% 61.7% 62.7% 61.1% 59.7% SHRIRAM City MONEY WHEN YOU NEED IT MOST Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 HL ■Top up LAP CF SHRIRAM HOUSING FINANCE#27Customer lifecycle digitization - SHFL 27 SHRIRAM City MONEY WHEN YOU NEED IT MOST Onboarding Improve Enhance Transform Underwriting € Collection Service - App based Login - Score Cards - Collection App Mobile App - - Digital PF Bureau Pull - Digital App Form - eNACH - Video PD - Process Enhancements Enhancements Voice BOTS X Bucket Pre-Due Payment Gateway on website CRM Grihapoorti App 54% Login * 43% disbursal * 2700+ Video PDs in FY'22 eNACH-27% * - 12K+ Calls via BOTS since launch (Dec'21-Mar'22) - ~15L collected via BOTS ~4000 MAU* 34.2 Lakhs Payment through app Application *Data for March'22; *MAU - Monthly Active Users System Infra SHRIRAM HOUSING FINANCE#28Borrowings Profile - SHFL NHB now part of diverse lender base 28 PTC 1% Stable long-term funding * Debt Maturity Profile (INR Cr.) DA 17% Term Loans from Banks 59% <3 months 438 3-6 months 235 7-12 months 465 4,670 Cr. 1-3 years 2,260 NCD 11% NHB 12% 3-5 years 256 25 reputed >5 years 184 Banks & Fls Continuous Decline in Cost of Funds Cost of Funds (%) * Excludes Securitization (DA & PTC) 9.30% 9.13% 9.11% 8.95% 8.59% 8.41% 8.23% 7.91% 851 SHRIRAM City MONEY WHEN YOU NEED IT MOST Augmented by high credit ratings CRISIL An S&P Global Company AA (CWP#) India Ratings & Research A Fitch Group Company AA (Positive) CARE Ratings Professional Risk Opinion Debt raise trend Amount in INR Cr. # Credit Watch Positive 850 647 397 172 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 AA (CWP#) Increasing Net-worth 1,135 Cr. Comfortable CRAR 30.9% SHRIRAM HOUSING FINANCE#29Provisions Analysis (ECL computation under Ind-AS) - SHFL 29 SHRIRAM City MONEY WHEN YOU NEED IT MOST Particulars (INR Crore) 31-Mar-22 Gross Stage 1 & 2 4,495.7 31-Dec-21 3,794.3 31-Mar-21 3,361.9 ECL Provision Stage 1 & 2 34.0 26.4 24.3 Net Stage 1 & 2 4,461.8 3,767.9 3,337.5 ECL Provision % Stage 1 & 2 0.8% 0.7% 0.7% Gross Stage 3 (Regular) 50.9 66.9 64.2 Gross Stage 3 (RBI Circular dated 12th Nov'21) 27.8 29.2 Gross Stage 3 78.8 96.1 64.2 ECL Provision Stage 3 (Regular) 14.4 15.1 14.1 ECL Provision Stage 3 (RBI Circular dated 12th Nov'21) 4.0 4.2 Net Stage 3 60.4 76.8 50.2 Coverage Ratio % Stage 3 23.4% 20.0% 21.9% Gross Assets 4,574.5 3,890.4 3,426.1 Total Provision (Including Special COVID Provision) 52.4 54.2 48.4 Net Assets 4,522.1 3,836.2 3,377.7 Total Provision (including COVID Provision) / Gross Assets (%) 1.1% 1.4% 1.4% Provision Coverage Ratio (%) 66.5% 56.4% 75.4% Note: ECL Provision of 4.0 Cr INR made on loans classified as Stage-3 on account of RBI Circular against regular ECL requirement of 0.57 Cr SHRIRAM HOUSING FINANCE#30Key Financial Metrics - SHFL Value in Cr. Financials Loan Book Y-o-Y Comparison Y-o-Y Comparison FY'22 Q4'22 FY'21 ΔΥΟΥ Q4'21 ΔΥΟΥ 4575 3426 33.5% 4575 3426 33.5% Disbursals 2739 2195 24.8% 1118 1005 11.2% Total Income 549.2 422.3 30.0% 149.6 111.0 34.8% Interest Income 422.6 302.6 39.6% 114.5 84.1 36.2% Net gain on Assignment 55.1 73.9 (25.5)% 12.8 9.0 41.7% Other Income 71.5 45.8 56.2% 22.3 17.9 24.6% Interest Expense 280.6 208.0 34.9% 70.3 60.6 15.9% NIM 268.6 214.3 25.3% 79.3 50.4 57.4% Operating Cost 148.6 110.0 35.2% 43.8 33.8 29.6% - Personnel Costs 85.2 66.5 28.2% 24.5 19.7 24.2% - Other Costs 63.4 43.5 45.7% 19.3 14.1 37.2% Profit before provisions & tax 119.9 104.4 14.9% 35.5 16.6 114.1% Provisions & write-offs 10.8 20.1 (46.4)% 5.1 2.4 116.8% PBT 109.1 84.2 29.6% 30.4 14.2 113.6% Taxes 28.8 21.9 31.8% 8.3 0.0 nm PAT 80.3 62.4 28.8% 22.1 14.2 55.6% ☐ Income Reversal of 16 Cr related to prior period on account of Assignment Income recognition methodology change Expenses include ~14 Cr investment in Griha Poorti in FY'22, benefits to accrue next year Note: Financials are as per IND-AS 30 SHRIRAM City MONEY WHEN YOU NEED IT MOST SHRIRAM HOUSING FINANCE#31Key Financial Metrics & Ratios - SHFL Yield on Assets Interest Expenses SHRIRAM City MONEY WHEN YOU NEED IT MOST NIM 16.7% 15.8% 18.6% 3.5% 16.7% 2.9% 14.4% 1.4% 8.3% 8.2% 9.8% 10.3% 6.9% 7.0% 7.4% 8.8% 8.5% 7.1%* 16.7% 15.8% 15.1% 13.8% 13.0% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Operating Income Gain on assignment Total Income Operating Expenses 6.1% 5.7% 5.7% 4.4% 3.9% 0.4% 0.7% Mar-18 Mar-19 Mar-20 3.5% Mar-21 Mar-22 Credit Cost 1.4% 1.3% 0.8% 0.3% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 * Excl. one time Impact of assignment income methodology change, NIM for FY'22 would be higher by 0.4%. NIM's will stabilize 7.5% Steady state Return On Assets 2.3% 0.9% 2.4% 2.5% 2.1% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Investment in Griha Poorti ~14 Cr in FY'22 ■ FY'22 includes 30 Cr adverse impact on OPEX related to investments in Griha Poorti of ~14 Cr and one time negative impact on Revenue and NIMS of 16 Cr on account of methodology change for recognizing Gain on Assignment income Expect FY'23 to see benefits on increased distribution network and rationalized income recognition policy Note: All numbers are calculated as % of Avg. Loan book 31 SHRIRAM HOUSING FINANCE#3232 Thank You SHRIRAM City MONEY WHEN YOU NEED IT MOST SHRIRAM HOUSING FINANCE#3333 Disclaimer SHRIRAM City MONEY WHEN YOU NEED IT MOST This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of 'Shriram City Union Finance Limited' and/or 'Shriram Housing Finance Ltd.' (the "Company") and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This presentation is not a complete description of the Company. Certain statements in the presentation contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. SHRIRAM HOUSING FINANCE