#1В Muthoot Finance India's No.1 Most Trusted Financial Services Brand Power of Trust TRA's Brand Trust Report Financial Results Q1 FY 2023 June 2022 Muthoot Family - 800 years of Business Legacy 0000 Great Place To Work® Certified APR 2021-MAR 2022 INDIA#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 56.97 100.00 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 YoY Q1 FY 2023 Q1 FY 2022 FY 2022 (%) 5,667 5,443 5,579 Consolidated Gross Loan Assets* of the Group (in million) 634,439 581,348 644,939 9 Consolidated Profit of the Group (in million) 8,250 9,786 40,313 (16) Contribution in the Consolidated Gross Loan Assets* of the Group Muthoot Finance (%) Subsidiaries (%) 89 90 90 11 10 10 Contribution in the Consolidated Profit of the Group Muthoot Finance (%) 97 99 98 Subsidiaries (%) 3 1 2 *Principal amount of Loan assets 3#5THE GROUP Gross Loan Assets* of the Group Ⓡ Muthoot Finance (in millions) Jun-22 Mar-22 Jun-21 YoY (%) Muthoot Finance Limited 566,892 580,532 526,138 8 Muthoot Homefin (India) Limited 14,748 14,699 17,048 (13) Belstar Microfinance Limited 46,964 43,658 30,721 53 Muthoot Money Limited 1,976 2,071 3,326 (41) Asia Asset Finance PLC 3,859 4,459 5,320 (27) Less: Intra-Group Loan Assets 480 1,205 (100) Total 634,439 644,939 581,348 9 *Principal amount of Loan assets 4#6THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance (in millions) Q1 FY 2023 Q1 FY 2022 FY 2022 8,020 9,712 39,543 Muthoot Homefin (India) Limited 14 5 84 Muthoot Insurance Brokers Private Limited 71 43 276 Belstar Microfinance Limited 138 20 20 451 Muthoot Money Limited Asia Asset Finance PLC 0.49 (1) (66) 11 4 43 Muthoot Asset Management Private Limited 8 4 23 Muthoot Trustee Private Limited 0.03 0.05 0.17 5#7Consolidated Statement of Assets and Liabilities Particulars ASSETS Jun-22 Mar-22 Ⓡ Muthoot Finance (in millions) Jun-21 Financial assets Cash and cash equivalents 66,145 100,358 87,181 Bank Balance other than above 2,453 2,791 1,993 Derivative Financial Instruments 1,411 605 499 Trade Receivables 66 70 95 Loans 630,210 645,276 594,610 Investments 6,607 5,233 7,829 Other Financial Assets 2,907 2,807 3,214 Non-Financial Assets Current Tax Assets (Net) 108 110 75 Defered Tax Assets (Net) 1,215 1,090 735 Investment Property 72 93 141 Property, Plant and Equipment 2,831 2,817 2,531 Right to use Asset 132 148 162 Captial Work-In-Progress 837 523 394 Goodwill 300 300 300 Other Intangible Assets 57 59 83 Intangible assets under development 1 1 Other Non Financial Assets 768 883 1,172 Total-Assets 716,121 763,165 701,015#8Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Jun-22 Mar-22 Jun-21 LIABILITIES Financial Liabilities Derivative Financial Instruments 3,096 4,798 3,408 Trade Payables 1,661 1,570 1,692 Other Payables 6 3 8 Debt Securities 130,424 131,740 143,212 Borrowings (other than Debt securities) 364,973 408,553 368,162 Deposits 1,877 2,235 3,014 Subordinated Liabilities 2,999 2,997 3,296 Lease Liability 145 160 172 Other Financial Liabilities 11,765 13,323 11,939 Non-Financial Liabilities Current Tax Liabilities (net) 2,315 1,418 2,829 Provisions 3,703 3,680 3,732 Deferred Tax Liabilities (net) 172 166 119 Other Non-Financial Liabilities 635 1,140 307 EQUITY Equity attributable to equity owners of the company 188,011 187,857 157,273 Non-Controlling Interest 4,340 Total Liabilities and Equity 716,121 3,522 763,165 1,854 701,015 7#9Ⓡ Muthoot Finance Consolidated Financial Results Particulars Income Interest Income Service Charges Sale of Services Other Income (in millions) YOY Q1 FY 2023 Q1 FY 2022 FY 2022 (%) 27,301 29,183 (6) 119,252 274 155 77 1,121 22 27 (18) 140 160 76 111 Income other than above 286 193 49 Total Income Expenses 28,043 29,634 (5) 25 526 1,336 122,375 Finance Cost 10,509 10,856 (3) 42,559 Impairment of Financial Instruments (99) 818 (112) 3,835 Net Loss on derecognition of financial instruments 19 120 (84) 35 Employee Benefit Expenses 3,447 2,771 24 12,395 Depreciation, Amortisation and Impairment 171 152 12 700 Other Expenses 2,876 1,819 58 8,749 Total Expenses 16,924 16,536 2 68,273 Profit before tax 11,119 13,098 (15) 54,102 Tax expense 2,870 3,312 (13) 13,789 Profit after Tax 8,250 9,786 (16) 40,313 Earnings per share -Basic (7) 20.41 24.37 (16) 100.10 Earnings per share -Diluted (*) 20.40 24.35 (16) 100.05 8#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 178 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 26,000+ Team members 566,892 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, 2022) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 22.61 4.02 73.37 Ⓡ Muthoot Finance (%) Shareholding as on June 30, 2022 Promoter & Promoter group FII, FC, MF & Others Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on June 30,2022) 391,847 million 11#13BOARD OF DIRECTORS - PROMOTER GROUP George Jacob Muthoot Chairman George Alexander Muthoot Managing Director George M George Wholetime Director George M Jacob Whole time Director Muthoot Finance (1/2) George Thomas Muthoot Whole time Director Alexander George Whole time Director George Alexander Whole time Director 12#14BOARD OF DIRECTORS - INDEPENDENT DIRECTORS Jacob Benjamin Koshy Independent Director Ⓡ Muthoot Finance (2/2) Jose K Mathew Independent Director Ravindra Pisharody Independent Director V. A. George Independent Director Pratip Chaudhuri Independent Director Usha Sunny Independent Director Abraham Chacko Independent Director 13#15DIVIDEND PAYOUT Delivering consistent returns to stakeholders Dividend (%)* Ⓡ Muthoot Finance (%) FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 200 200 150 120 100 60 60 60 Dividend payout ( in 8,027 8,024 7,249 5,796 4,813 2,885 2,877 2,813 millions) Dividend Payout Ratio (%) 20 21 19 24 22 * On face value of 10 per equity share 20 20 29 29 35 14#16GEOGRAPHICAL PRESENCE A strong presence of 4617 branches across India (%) Branches region wise State wise Branch Network 60 60 17 ■ East 16 North ■ West ■South (As of June 30, 2022) 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 Jharkhand West Gujarat 195 Madhya Pradesh 100 17 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 972 550 Tripura Assam 33 Andaman & Nicobar Islands 6 15#17DIGITAL INITIATIVES Digital convenience for new gen & Millennium Customer acquisition Direct Credit Facility Muthoot . E-TRANSFER • Loan proceeds credited to bank • • account NEFT/RTGS/IMPS mode of bank transfer Less cash handling at branch Instant credit to customer bank account 440 682 Pa Muthoot Finance POS Terminals Enables swiping of Debit cards issued by banks Swiping charges for Interest payments waived off Paytm पेPhonePe Google Pay BBPS BHARAT BILL PAYMENT SYSTEM NPCI भारतीय राष्ट्रीय भुगतान निगम NATIONAL MUNTE CORPORATION OF INDIA Loan repayment option through Paytm Phone Pay Google Pay BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance UPI Powered by NPCI New Initiatives Launched Al based Chat bot with transactional capabilities. WhatsApp banking facility launched with online-top up facility. RPA enabled Penny Drop verification for Bank Account online linking. Video KYC and Digital KYC are enabled for Customers Digital on-boarding through CRM. BBPS enabled Payment link generation through SMS or WhatsApp. New Payment Gateway Razorpay added in iMuthoot Mobile App BBPS Utility Payment through iMuthoot Mobile App 16#18Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • Muthoot Finance 35.3 % of gold loan customers are transacting online. (including Paytm, PhonePe & Google Pay). Muthoot Online Muthoot nline 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. • ¡Muthoot App im Muthoot Mobile App Launched in Nov' 16 has about 48.1 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.8.732 Crs payments from 3 Cr successful transactions so far (Including WebPay). 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) WhatsApp Gold Op-in Launched "ZIP Consumer loans" launched in iMuthoot. Customers can now purchase consumer durable products online from their eligible top-up amount and can be paid in installments 17#19DIGITAL 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 18#20Standalone Statement of Assets and Liabilities Muthoot Finance (in millions) Particulars Jun-22 Mar-22 Jun-21 ASSETS Financial assets Cash and cash equivalents 58,445 91,785 82,321 Bank Balance other than above 663 644 509 Derivative Financial Instruments 1,411 605 499 Trade Receivables 38 21 55 Loans Investments 577,160 593,842 548,144 14,836 13,205 16,000 1,339 1,225 2,105 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 526 485 315 Property, Plant and Equipment 2,642 2,637 2,381 Captial Work-In-Progress 518 456 394 Other Intangible Assets 36 37 51 Other Non Financial Assets 462 603 895 Total Assets 658,076 705,547 653,669 19#21Jun-22 Mar-22 Standalone Statement of Assets and Liabilities Particulars LIABILITIES Ⓡ Muthoot Finance (in millions) Jun-21 Financial Liabilities Derivative Financial Instruments 3,096 4,798 3,408 Trade Payables 1,559 1,512 1,602 Debt Securities 124,248 124,979 135,213 Borrowings (other than Debt securities) 328,090 371,710 340,454 Subordinated Liabilities 1,424 1,424 1,711 Other Financial Liabilities 10,169 11,782 10,810 Non-Financial Liabilities Current Tax Liabilities (net) 2,205 1,353 2,749 Provisions 3,607 3,598 3,652 Other Non-Financial Liabilities 428 945 229 EQUITY Equity Share Capital Other Equity Total Liabilities 4,014 4,013 4,012 179,236 179,432 149,830 658,076 705,547 653,669 20#22REVENUE & PROFIT Standalone Financial Results Ⓡ Muthoot Finance (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 YoY Growth FY 2022 (%) INCOME Interest Income 24,816 26,410 26,837 (8) 109,560 Other than Interest Income 277 374 312 (11) 1,424 Total 25,093 26,784 27,149 (8) 110,984 EXPENSES Finance Cost 9,416 9,208 9,822 (4) 38,358 Employee benefit Expense 2,715 2,543 2,246 21 9,487 Administrative & Other expenses 2,480 2,066 1,562 59 7,421 Impairment on Financial Instruments (577) (700) 337 (271) 1,270 Directors Remuneration 112 589 68 64 815 Depreciation & Amortisation 129 158 114 13 539 Total 14,275 13,866 14,148 1 57,890 PROFIT Profit Before Tax 10,818 12,918 13,001 (17) 53,094 Profit After Tax 8,020 9,603 9,712 (17) 39,543 21#23EQUITY Strong Capital Base Networth Ⓡ Muthoot Finance (in millions) Jun-22 Mar-22 Jun-21 Equity Share Capital 4,014 4,013 4,012 Other Equity 179,236 179,432 149,830 Total 183,250 183,445 153,842 22 22#24ASSETS Core focus continues to be gold loan Gross Loan Assets under management* Gross loan assets under management Jun-22 Mar-22 В Ⓡ Muthoot Finance Jun-21 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) 566,892 580,532 526,138 8 (2) Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 561,766 575,313 520,686 8 (2) 5,126 5,219 5,452 (6) (2) 23#25LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Jun-22 Mar-22 Jun-21 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures (Muthoot Gold Bonds) 1,945 2,195 2,524 (23) (11) Secured Non-Convertible Debentures- Listed 122,542 123,034 133,057 (8) 0 Borrowings from Banks/Fls 233,483 276,631 208,484 12 (16) External Commercial Borrowings- Senior secured Notes 78,973 75,792 74,330 6 4 Subordinated Debt Subordinated Debt -Listed 1,431 1,431 1,720 (17) 0 Commercial Paper 9,892 43,605 (100) (100) Other Loans 15,893 9,726 14,399 10 63 Total 454,267 498,701 478,119 (5) (9) *Principal amount of Borrowings 24#26GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* 640 Ⓡ Muthoot Finance (in billions) 600 560 520 575 562 521 519 480 440 408 400 360 336 320 288 272 280 260 216 233 243 240 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 *Principal amount of gold Loan assets 25#27GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security. Ⓡ Muthoot Finance (In tonnes) 200 187 178 180 176 171 171 169 160 155 149 142 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 26#28Ⓡ GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO Muthoot Finance Diversified gold loan portfolio across India (%) 100 80 60 40 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 East 5 6 6 7 7 8 8 9 9 9 9 9 West 11 13 15 17 18 19 20 19 19 19 19 19 North 19 22 22 22 23 23 23 23 22 22 22 22 South 65 59 57 54 52 50 49 49 50 50 50 50 Gold Loan Assets Under Management * (in billions) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 260 216 233 243 272 288 336 408 519 521 575 562 *Principal amount of Gold Loan Assets 27#29Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 135 115 95 89.28 74.97 75 63.69 66.70 63.20 56.93 55.01 50.63 55 35 15 (in millions) 124.61 121.67 112.1 112.58 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 *Principal amount of Gold Loan Assets 28#30HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 167 148 Pa Muthoot Finance (in billions) 127132 112 102 104106 100 98 91 90 87 85 82 77 77 65 68 69 69 70 70 55 54 61 58 60 52 52 43 41 43 42 48 45 FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4 Q1 FY20 FY20 FY20 FY20 FY21 Avg Monthly Disbursement Q2 Q3 Q4 FY21 FY21 FY21 Q1 FY22 Q2 Q3 Q4 FY22 FY22 FY22 Q1 FY23 Avg Monthly Collection • Strong level of disbursements and collections 29 29#31% of collections to disbursement HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection 60% Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 80% 40% 20% 0% FY15 FY16 FY17 FY18 FY 19 FY 20 ■ 1m ■ 2m ■ 3m ■4m ■ 5m ■ 6m Collections in 6 months of disbursements made in respective periods A high proportion of gold loan is repaid within first 6 months FY 21 30 30#32Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Jun-22 Mar-22 Jun-21 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Gold Loan assets (in Billions) 562 575 521 519 407 336 288 272 243 Quantity of Gold content in Ornaments held 178 187 171 171 176 169 155 149 142 as Security (Tonnes) Gold Price/gm (₹) 4,659 4,716 4,283 4,048 3,955 2,910 2,824 2,725 2,670 Lender's Perspective Market Price of Gold Content in Ornaments 829 882 732 692 696 492 438 406 379 (in Billions) Margin of safety on loans 32% 35% 29% 25% 42% 32% 34% 33% 36% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards making charges etc 995 1,058 878 830 835 590 526 487 455 Equity of Borrower in the Gold Ornaments 44% 46% 41% 37% 51% 43% 45% 44% 47% net of loans availed * Above calculations are made on overall portfolio and excludes interest accrued on loans 31#33CUSTOMER BASE Highly churning customer base (1/2) Jun-22 Ⓡ Muthoot Finance Mar-22 Jun-21 Mar-21 Mar-20 Mar-19 Gold Loan AUM (in Millions) 561,766 575,313 520,686 519,266 407,724 335,853 QoQ % change in Gold Loan AUM (2) 6 0 5 8 No. of Loan Accounts 80,90,132 83,69,535 85,24,713 84,10,139 80,22,325 80,62,139 QoQ % change in no. of loan accounts (3) (2) 1 5 No.of Active customers 51,73,166 53,16,246 52,44,143 51,90,220 49,33,886 47,21,243 QoQ % change in no.of (3) customers 1 3 1 32#34CUSTOMER BASE Highly churning customer base (2/2) Above Gold Loan AUM and No. of customers includes: 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 Ⓡ Muthoot Finance Jun-22 Mar-22 Jun-21 Mar-21 Mar-20 Mar-19 393,018 427,472 315,320 432,320 352,036 380,171 8 8 27,646 40,233 6 20,185 8 29,170 7 21,806 20,023 8 314,152 6 7 26,162 42,954 5 372,764 246,220 361,090 346,626 360,251 7 7 8 17,299 27,528 25,622 23,148 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) 736,855 763,317 556,419 756,618 702,566 779,363 14 61,505 69,973 14 11 15 31,522 48,859 14 17 42,368 42,751 33#35YIELD ON LOAN ASSETS AND NIM Yearly (%) Quarterly Pa Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 22.21 21.66 22.17 22.00 22.00 21.43 21.23 20.06 20.40 20.00 20.00 20.27 19.72 18.74 19.31 18.00 18.00 17.30 15.52 16.00 15.29 16.00 14.24 14.00 13.04 14.00 14.20 11.38 12.74 12.00 10.84 12.00 9.79 10.47 10.00 10.00 10.27 9.52 8.69 9.42 9.25 7.93 8.00 7.03 7.51 6.92 7.02 8.00 6.00 6.00 بانانا Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Mar-18 Mar-19 Mar-20 Mar-21 Mar-22* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 34#36INTEREST SPREAD Yearly 26.00 (%) Quarterly Muthoot Finance (%) 26.00 24.00 23.03 24.00 21.66 22.21 22.17 21.43 22.00 21.23 20.27 22.00 19.31 19.72 20.00 20.06 20.00 18.74 18.00 18.00 17.30 16.00 16.00 14.04 13.45 13.49 14.00 12.42 14.00 11.88 11.99 12.23 12.00 10.93 10.90 10.80 12.00 10.53 8.99 10.00 9.24 9.00 8.39 8.38 8.76 8.68 10.00 8.07 8.92 7.93 8.00 8.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 *Mar-19*Mar-20*Mar-21*Mar-22* *Under IND-AS 6.00 20.40 LLL 9.37 7.83 10.91 8.19 12.21 Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread 35#37RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 (%) Quarterly 10.00 Ⓡ Muthoot Finance (%) 8.11 7.99 9.00 8.00 7.24 8.00 7.00 7.38 6.36 6.19 7.00 6.81 6.00 6.00 5.59 5.00 5.00 4.05 4.47 4.00 3.22 4.00 3.32 3.03 3.00 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18*Mar-19*Mar-20* Mar-21*Mar-22* Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* *Under IND-AS 36#38IMPAIRMENT OF LOAN ASSETS Pa Muthoot Finance Stage III Loans Assets and ECL Provision (in millions) Jun-22 Mar-22 Jun-21 550,202 545,326 517,110 Stage I Loan Assets Stage II Loan Assets 4,612 17,834 2,620 Stage III Loan Assets 12,078 17,372 6,408 % Stage III Assets on Gross Loan Assets 2.13 2.99 1.22 ECL Provision on Gross Loan Assets 6,594 7,219 6,501 ECL Provision as % of Gross Loan Assets 1.16 1.24 1.24 Excess Provision outstanding in books 2,954 2,954 2,954 Bad Debts (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 Bad Debts Written Off 53 58 91 289 % of Bad Debts written off to Gross Loan Assets 0.01 0.01 0.02 0.05 37#39LIABILITY MIX Maintaining a diversified funding profile* (%) * 15 2 2 55 *Principal amount of Borrowings Ⓡ Muthoot Finance 25 25 Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 1,945 mn (0%) Secured Non-Convertible Debentures - Listed - 122,542 mn (27%) - Borrowings from Banks/Fis - 233,483 mn (51%) External Commercial Borrowings- Senior secured Notes - 78,973 mn (17%) Subordinated Debt - 0 mn (0%) ■Subordinated Debt - Listed - 1,431 mn (0%) Commercial Paper - 0 mn (0%) Other Loans - 15,893 mn (3%) (As of June 30, 2022) 38#40DOMESTIC 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 ICRA A1+ Long-term Rating Rating Indicates Ⓡ Muthoot Finance 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 Indicates SUBORDINATED DEBT CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED BANK LOANS ICRA LIMITED ICRA AA+(Stable) ICRA AA+(Stable) 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 39#41Ⓡ 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 40#42BREAK-UP OF TOTAL INCOME Interest Income Yearly 140,000 120,000 Quarterly Ⓡ Muthoot Finance (in millions) 140,000 109,560 103,285 120,000 100,000 100,000 85,644 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 24,816 26,410 26,837 20,000 20,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* Other Than Interest Income Yearly (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 2,000 1,584 1500 1,310 1,424 921 1000 620 543 500 397 230 0 ili 1,236 1,500 1,000 500 277 374 312 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* *Under IND-AS 41#43Ⓡ 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 3.48 4.00 3.50 3.50 3.00 3.30 3.19 3.21 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* 2.50 Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* *Under IND AS 42#44Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly (in million) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Muthoot Finance Quarterly (in millions) Q1 FY Q4 FY Q1 FY 2023 2022* 2022* Employee Benefit Expenses 9,487 9,270 9,657 8,415 7,393 7,280 6,418 6,304 2,715 2,543 2,246 Rent 2,350 2,189 2,158 1,974 1,913 1,808 1,713 1,650 616 601 605 Advertisement & Publicity 1,197 1,190 1,163 1,056 720 531 626 651 467 366 209 Communication Costs 498 387 355 368 404 372 378 371 110 151 104 Traveling and Conveyance 271 210 273 240 182 186 187 212 83 83 49 Printing and Stationery 150 151 177 153 136 129 144 160 35 43 33 Repairs and Maintenance 568 276 283 280 304 362 290 281 127 150 121 Legal and Professional 283 387 260 203 154 124 93 189 65 118 48 Charges Business Promotion 7 369 720 481 209 201 149 140 38 (143) 41 Expenses Directors Remuneration 815 793 633 561 431 362 196 192 112 589 68 Depreciation and 539 507 431 421 439 482 575 841 129 158 114 Amortisation Expenses Others 2,098 2,075 1,677 1,260 2,970 835 1,014 733 939 698 351 Provision For Standard & 2,647 1,223 180 NPA Assets Impairment on Financial 1,270 950 957 instruments Total 19,533 18,754 18,744 259 15,670 316 (577) (700) 337 15,571 15,319 13,006 11,904 4,859 4,657 4,326 *Under IND-AS 43#45BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Q1 FY Q4 FY Q1 FY Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 2023* 2022* 2022* Employee Benefit Expenses 49 49 52 54 47 48 49 53 56 56 55 52 Rent 12 12 12 13 12 12 13 14 Advertisement & Publicity 6 7 3 LO 5 5 Communication Costs 2 2 2 2 3 2 3 3 Nōw 13 13 14 10 8 5 2 2 Traveling and Conveyance 1 1 1 2 1 1 1 2 2 2 1 Printing and Stationery 1 1 1 1 1 1 1 1 1 1 1 Repairs and Maintenance 3 1 2 2 2 2 3 3 3 Legal and Professional 1 2 1 1 1 1 1 2 1 3 1 Charges Business Promotion Expenses 2 4 3 1 1 1 1 1 (3) 1 Directors Remuneration 3 2 2 2 2 13 2 Depreciation and 3 3 2 3 3 4 7 3 3 3 Amortisation Expenses Others 11 12 6 8 19 5 8 6 18 15 8 Provision For Standard & 17 6 2 NPA Assets Impairment on Financial instruments Total *Under IND-AS 7 5 5 2 2 (12) (15) 100 100 100 100 100 100 100 100 100 100 100 44 80#46Ⓡ PROFITABILITY RATIOS Yearly (%) Muthoot Finance Quarterly (%) Q1 FY Q4 FY Q1 FY (Based on Income) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 2023* 2022* 2022* Interest expense to Gross Income 34.56 34.92 32.00 32.51 30.50 39.92 46.31 48.71 37.52 34.38 36.18 Selling, general and administrative expenses to 24.40 25.13 29.26 32.24 28.93 34.88 41.36 48.26 33.85 29.58 22.37 Net Income Provisions & Write Offs to Net Income 1.75 1.38 1.61 0.59 5.44 8.16 6.20 1.67 (3.68) (3.98) 1.94 Operational expenses to Net Income 26.15 26.51 30.87 32.84 34.38 43.03 47.56 49.93 30.17 25.60 24.31 OPBDT/Net Income 73.85 73.49 69.13 67.16 65.62 56.97 52.44 50.06 69.83 74.40 75.69 Depreciation to Net Income 0.74 0.74 0.73 0.90 1.00 1.33 2.13 3.72 0.82 0.90 0.66 OPBT/Net Income 73.11 72.75 68.40 66.26 64.63 55.63 50.31 46.34 69.01 73.50 75.03 PBT/Net Income 73.11 72.75 68.40 66.26 64.63 55.63 50.31 46.34 69.01 73.50 75.03 PAT Net Income 54.45 54.09 50.88 42.47 40.38 34.17 30.93 30.23 51.16 54.64 56.05 *Under IND-AS 45#47Ⓡ PROFITABILITY RATIOS Yearly Muthoot Finance (%) Quarterly (%) (Based on Average Loan Assets) Q1 FY EQ4 FY Q1 FY Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 2023* 2022* 2022* Interest income to avg. loan 20.06 22.17 23.03 21.63 22.21 21.43 19.72 19.30 17.30 18.74 20.40 assets Interest expense to avg. loan assets 7.02 7.93 7.51 7.16 6.92 8.69 9.25 9.52 6.56 6.53 7.47 Net Interest Margin 13.03 14.24 15.53 14.47 15.29 12.74 10.47 9.78 10.74 12.21 12.93 Other income to avg. loan assets 0.26 0.53 0.43 0.40 0.47 0.35 0.25 0.25 0.19 0.27 0.24 Net Income Including Other 13.30 14.77 15.95 14.87 15.76 13.08 10.72 10.03 10.93 12.47 13.17 Income Selling, general and administrative expenses to avg. 3.25 3.72 4.68 4.80 5.32 4.56 4.43 4.84 3.70 3.69 2.95 loan assets Provisions and write offs to avg. 0.23 0.20 0.26 0.09 0.11 1.07 0.67 0.17 (0.40) (0.50) 0.26 loan assets PBDT to avg. loan assets 9.81 10.85 11.02 9.98 10.33 7.45 5.62 5.02 7.63 9.27 9.97 Depreciation to avg. loan assets 0.09 0.10 0.11 0.12 0.15 0.17 0.23 0.37 0.09 0.11 0.08 PBT to avg. loan assets 9.72 10.75 10.91 9.85 10.19 7.28 5.39 4.65 7.54 9.17 9.88 Tax to avg. loan assets 2.48 2.76 2.79 3.54 3.82 2.81 2.08 1.62 1.95 2.35 2.50 PAT to avg. loan assets 7.24 7.99 8.12 6.31 6.36 4.47 3.32 3.03 5.59 6.81 7.38 Cash Profit to avg. loan assets 7.33 8.09 8.23 6.44 6.51 4.65 3.54 3.40 5.68 6.92 7.46 *Under IND-AS 46#48PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT Quarterly PBT PAT 55,000 53,094 50,000 45,000 50,065 45,000 40,000 40,000 40,574 39,543 35,000 35,000 37,222 30,000 30,768 28,447 30,183 30,000 25,000 25,000 20,000 20,000 19,210 15,114 13,168 19,721 17,776 15,000 15,000 11,936 12,918 13,001 10,042 10,279 10,000 11,798 10,818 7,801 10,000 9,603 9,712 8,020 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* Mar-22* Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* *Under IND-AS 47#49NETWORTH Steady capital position Share Capital and Reserves & Surplus Ⓡ Muthoot Finance (in millions) 200,000 183,445 183,250 180,000 160,000 153,842 152,389 140,000 120,000 115,718 97,928 100,000 78,120 80,000 65,164 56,192 60,000 37,356 42,646 50.835 40,000 20,000 0 Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Jun-21* Mar-22* Jun-22* *Under IND-AS 48#50RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 55 50 45 40 559 55 50 45 40 2332250 35 30.15 28.26 30 27.77 25.37 24.81 25 22.40 23.55 21.48 20 19.50 19.44 17.50 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*Mar 22* 0 Q1 FY 2023* Q4 FY 2022* Q1 FY 2022* *Under IND-AS 49#51CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Capital Adequacy Ratio Tier-I Tier-ll Ⓡ Muthoot Finance Jun-22 Mar-22 Jun-21 30.62 29.97 27.32 29.73 29.10 26.26 0.89 0.87 1.06 (%) 50 50#52MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Q1 FY 2023 Q4 FY 2022 Ⓡ Muthoot Finance Q1 FY 2022 FY 2022 Earnings per share (7) - Basic 19.98 23.93 24.21 98.55 - Diluted 19.97 23.92 24.18 98.50 Jun-22 Mar-22 Jun-21 456.48 456.98 383.33 Book Value per share (*) Market price per share (*)* ** 976.30 1,330.95 1,481.65 Price to Earnings ratio* *** 10.35 13.51 15.43 Price to Book Value ratio 2.14 2.91 3.87 **Source: www.nseindia.com ***Based on trailing 12 months EPS 51#53CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (In millions) Jun-22 Mar-22 Jun-21 Outside Liabilities 474,826 522,101 499,827 Cash & Bank Balances & Investment in MF liquid 58,616 91,926 82,492 Funds Tangible Networth 183,214 183,408 153,791 Capital Gearing 2.27 2.35 2.71 52#54TEAM STRENGTH Ⓡ Muthoot Finance Groomed human capital over the years to meet growing business requirements 28000 27000 26000 25012 24881 25000 24000 23000 22000 21000 20000 22882 22781 24205 24224 23455 (No. of Employees) 26618 26716 25911 25554 25397 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Mar-22 Jun-22 53#55OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 54#56ASIA 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 30,2022, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 17,623 million as on June 30, 2022 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 63 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 52 years, evolving to serve the growing needs of people of Sri Lanka. 55#57Ⓡ 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 o Micro Finance o Loan against Gold Jewellery 56#58Pa 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 52 57#59Key Financial Parameters Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) Particulars INR/LKR Number of branches Number of Employees Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 0.218977 0.257066 0.372288 FY 2022 0.257066 63 59 48 59 400 526 425 526 Gross Loan AUM (LKR) 17,623 17,345 14,289 17,345 Capital Adequacy Ratio (%) 30 28 14 28 Total Revenue (LKR) 1,157 921 678 3,181 Total Expense (LKR) 1,077 855 650 2,979 Profit Before Tax (LKR) 80 66 28 202 Profit After Tax (LKR) 50 44 10 118 Shareholders Funds (LKR) 2,777 2,756 2,232 2,756 Total Outside Liabilities (LKR) 17,573 16,586 13,829 16,586 Total Assets (LKR) 20,350 19,342 16,061 19,342 58#60OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 59#61Ⓡ 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, 2022, it has a loan portfolio of Rs. 14,748 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. 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 Number of branches 108 108 108 108 Number of Sales Offices 108 108 108 108 Number of Employees 222 243 260 243 Gross Loan AUM (R) 14,748 14,699 17,048 14,699 Capital Adequacy Ratio (%) 58 60 53 60 Total Revenue (*) 383 611 460 2,137 Total Expense (*) 363 547 453 2,036 Profit Before Tax () 20 64 7 101 Profit After Tax (*) 15 56 5 84 Shareholders Funds (*) 4,485 4,471 4,392 4,471 Total Outside Liabilities (*) 8,503 8,355 11,014 8,355 Total Assets (₹) 12,988 12,826 15,406 12,826 61#63Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 Disbursement (R) 661 388 557 1,341 Borrowings () 7,820 7,643 10,531 7,643 Debt Equity Ratio (%) 1.74 1.71 2.40 1.71 Yield on Advances (%) 12.58 12.60 12.26 12.41 Interest Spread (%) 4.42 4.50 3.83 4.11 NIM (%) 6.56 6.66 5.50 6.16 Cost to Income Ratio (%) 51.15 59.95 47.50 56.76 Return on Assets (ROA) (%) 0.55 1.95 0.14 0.65 Return on Equity (ROE) (%) 1.30 5.03 0.43 1.91 Stage III Loan Assets 380 309 1,012 309 % Stage III assets on Gross Loan Assets (AUM) 2.58 2.10 5.94 2.10 Stage III ECL Provision 235 178 309 178 ECL Provision 308 257 361 257 ECL Provision as a % of Gross Loan Assets (AUM) 2.09 1.75 2.12 1.75 Number of Customers 20,798 21,035 22,421 21,035 62#64Financial Highlights Growth Drivers Profitability Opportunities • . • • Ⓡ Muthoot Homefin Muthoot Finance Disbursements in Q1 FY 2023: Rs 661 mn. AUM as on June 30, 2022: Rs. 14748 mn, Loan Book as on June 30, 2022: Rs 10783 mn. Average Ticket Size in Q1 FY 2023: Rs. 0.92 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 2023: 0.55, ROE for Q1 FY 2023: 1.30% Average cost of borrowings of 8.16% for Q1 FY 2023. Capital Adequacy Ratio: 58.24, Debt Equity Ratio: 1.74 • Average Yield: 12.58%, Interest Spread: 4.42% . Received PMAY subsidy of INR 113 mn for 758 cases in Q1 FY 2023. Increasing the leverage from 1.74x 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 1.74 times as on June 30, 2022, indicates ample scope for financial leverage to increase ROE Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex • . 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 63 63#65OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 64#66Ⓡ Muthoot 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 FY23, it has insured more than 11,72,900 lives with a First year premium collection of Rs.1,002 million under Traditional, Term and Health products.. During Q1 FY22, it has insured more than 3,43,500 lives with a First year premium collection of Rs.305 million under Traditional, Term and Health products.. 65#67Key Business Parameters Particulars Premium Collection (*) Number of Policies Key Financial Parameters Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 1,308 1,861 606 4,793 11,84,206 11,22,446 353,967 36,03,048 (in millions) Particulars Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 Total Revenue (*) 108 161 69 450 Total Expense (*) 14 16 11 78 Profit Before Tax (3) 94 146 58 372 Profit After Tax (*) 71 108 43 276 Shareholders Funds (*) 1,194 1,123 890 1,123 Earnings per share (*) 94 143 57 369 66#68OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 10 67#69Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of June 2022, Muthoot Finance holds 56.97% 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 thirteen 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, 2022, 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 755 branches, with 187 controlling regional offices and employs 6596 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 46,964 mn in June 2022 68#70Key Financial Parameters Pa Muthoot Finance (in millions) Particulars Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 Number of Branches 755 729 651 729 Number of Employees 6,596 5,939 4,651 5,939 Gross Loan AUM (7) 46,964 43,658 30,721 43,658 Capital Adequacy Ratio (%) 25 24 23 24 Total Revenue (*) 2,102 2,417 1,516 7,284 Total Expense (*) 1,930 2,044 1,496 6,723 Profit Before Tax () 172 373 20 561 Profit After Tax (*) 138 293 20 451 Stage III Loan Assets 3,441 2,502 1,126 2,502 % Stage III assets on Gross Loan Assets (AUM) 7.33 5.73 3.67 5.73 Stage III ECL Provision 2,288 1,682 742 1,682 ECL Provision 2,551 2,238 1,273 2,238 ECL Provision as a % of Gross Loan Assets (AUM) 5.43 5.13 4.14 5.13 Shareholders Funds (7) 9,784 8,559 5,431 8,559 Total Outside Liabilities (*) 36,594 37,044 25,832 37,044 Total Assets (7) 46,378 45,603 31,263 45,603 69#71OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 10 70#72MUTHOOT 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, 2022 it has a total loan portfolio of Rs.1,976 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 71#73Muthoot Money Muthoot Finance Key Financial Parameters Particulars Number of branches Number of Employees (in millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 124 66 11 66 553 365 143 365 Gross Loan AUM (*) 1,976 2,071 3,326 2,071 Capital Adequacy Ratio (%) 47 46 33 46 Total Revenue (*) 113 118 106 456 Total Expense (*) 112 98 108 544 Profit Before Tax (7) 1 20 (2) (88) Profit After Tax (*) 1 15 (1) (66) Stage III Loan Assets 155 137 627 137 % Stage III assets on Gross Loan Assets (AUM) 7.84 6.62 18.85 6.62 Stage III ECL Provision 68 51 37 51 ECL Provision 79 61 189 61 ECL Provision as a % of Gross Loan Assets 4.00 2.95 5.68 2.95 (AUM) Shareholders Funds (7) 1,036 1,035 1,099 1,035 Total Outside Liabilities (*) 1,203 1,233 2,207 1,233 Total Assets (3) 2,239 2,268 3,306 2,268 72#74OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth Pa Ⓡ Muthoot Finance (In millions) Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 FY 2022 1,103 1,095 1,076 1,095 MUTHOOT TRUSTEE PRIVATE LIMITED Networth Q1 FY 2023 Q4 FY 2022 Q1 FY 2022 10 10 10 (In millions) FY 2022 10 73#75Thank You 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 Muthoot Family - 800 years of Business Legacy EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com