#1Strictly Private & Confidential Aptus Value Housing Finance India Limited Investor Presentation | Q2 FY 22 ANALY ɅPTUS 田田#2Safe Harbor This presentation and the accompanying slides (the "Presentation") which have been prepared by Aptus Value Housing Finance India Limited (the "Company") have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding 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 has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or impled, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, the Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and action regulations, interest and other fiscal costs generally prevailing in the economy. The Company doe not undertake to make any announcement in case any of these forward looking statement become materially incorrect in future or update nay forward looking statements made from time to time by or on behalf of the Company. 2 APTUS™#33 Back ground Commenced Operations in 2010 from Chennai, Tamilnadu Regulated by RBI and supervised by NHB Run by professional management team backed by strong Founder Promoter and marquee investors O Presence in 198 locations APTUS™#44 Key Strengths 1 Leader in Attractive South Market 2 Superior Asset Quality APTUS 3 Industry Leading Profitability D 4 Presence in Large Underpenetrated Market M 5 Good Governance, Management and Alignment APTUS™#5Snapshot September 2021 - Assets under Management (AUM) 5 +28% Rs.4482 Cr +120 bps NIM 9.09% Disbursement Rs.421 Cr +5% +25% Gross Stage 3 0.81% +70% +14 bps -26 bps Opex to Assets Profit After Tax 2.74% Rs.85 Cr +6 bps +4 bps -4 bps +30% +16% Return on Assets Return on Equity YOY QoQ 7.43% Consistently maintained 14.09% Consistently maintained APTUS™#6Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio - Home Loans (HL)/Small Business Loans (SBL) HFC Insurance Top up loans (4%) loans (5%) Quasi HL (26%) 0 AUM Rs.3,849 Cr 6 Top up loans 4% Insurance loans (4%) Quasi HL (16%) HL (65%) NBFC Small Business loans (SBL) (100%) LIG Customers o Self Employed Borrowers AUM Rs.633 Cr Rural Focus Consolidated SBL (22%) HL (54%) - AUM Rs.4482 Cr 73% LIG 72% Self Employed 65% Rural Average Ticket Size < Rs.10 lks > 93% APTUS™#77 100% In-House Operations Fully In-House Team... ...Leading to Desired Business Outcomes 凸 Pricing Power 210+ 1,185+ Central Sales 200+ Legal & technical Credit రర Reduced TAT Low Takeover $ 336 $ Collection Reduced Risk of Frauds 凸 APTUS™#88 Robust Underwriting, Monitoring and Collections Process 100% In-House Sourcing Leveraging Technology Stringent Credit Underwriting • Lead Generation through Ref app, Cust app · Social media 198 Branches Digital Onboarding and KYC 0% Sourcing from DSA/Builders Credit verification app, property app and - legal app Optimal leverage of technology leading to efficient processing Robust Collection Management System Cash flow assessment Pre & Post Disbursement 15-24 months Monitoring early default signs Centralized Underwriting 90 DPD Legal action / SARFAESI APTUS™#9Information & Technology: Key Enabler of Growth Lending Software End-to-end software solution Customer Relationship & Service Automated CRM and customer service requests Human Resources Human resources management system application 9 1 2 3 4 5 6 Customer Onboarding Sales app, referral app, credit verfn. app and property app E-KYC, E-Nach Collections App, Payments automation via Bharat Bill Pay, Google Pay, Paytm etc Business Intelligence & Analytics "Power" analytics platform APTUS™#10Scalability Branch Productivity as on Sep 30, 2021 AUM per Branch (Rs. Cr) # of Branches Tamil Nadu Andhra Pradesh Telangana Karnataka C2 22 58 118 31 Per Capita GDP 1.8x Compared to national 1.1x 1.5x 1.5x average of INR 157k GDP Growth 13% 9% 8% 7% India average: 4% 10 11 % of AUM as on No of State branches Q2 FY 22 FY 21 FY 20 ☐ F FY 19 TamilNadu 79 50% 52% 56% 60% AndhraPradesh 69 29% 28% 25% 21% 1.67 Telangana 29 11% 10% 10% 9% Karnataka 21 10% 10% 10% 11% <1 Year Old 1-3 Year Old >3 Year Old Total 198 100% 100% 100% 100% APTUS™#11Incorporation 29 Scalable Operating Model Became Profitable First PE Equity 2010 2011 2012 11 (*) – WestBridge, Malabar Sequoia, Steadview Rs.4482 Cr AUM - Sep 2021 AUM Rs. 100 cr WestBridge Expansion - 4 states 358 252 159 86 2013 2014 2015 noyi 100th Branch 1414 Equity from Marquee investors(*) 3183 Customers over 50000 2247 519 846 ☑ 2016 2017 2018 2019 2020 2021 APTUS™ Company listed 4067#12Resilient Model Across Economic Cycles 12 GST Implementation NBFC Liquidity Crisis FY18 FY20 Covid-19 (first wave) FY21 Covid-19 (Second wave) H1 FY22 AUM growth (YoY) 66% 28% 22% (*) 41% Yield (1) 17% 18% 17% 17% GNPA 0.5% 0.7% 0.7% 0.81% ROA 6.0% 7.8% 7.4% 7.4%(*) (*) Annualised APTUS™#13Strong ESG Focus 13 Focus on financial inclusion Improving Living Standards Strong Corporate Governance 73% LIG 72% Self-employed Employment in rural / semi-urban areas NIL Material Civil litigation 40% New to Credit Support to borrowers Diversified Experience of Board Members across academic and professional domains APTUS™#1414 Performance Highlights (Quarterly) 4067 AUM (Rs. Cr) 4254 405 4482 Disbursement(Rs. Cr) 421 Covid 2 impact 247 8.60% NIM(%) 9.03% 9.09% Q4 FY 21 Q4 FY21 Q1 FY 22 Q1 FY 22 Q2 FY 22 Q2 FY22 Q4 FY 21 Q1 FY 22 Q2 FY 22 0.67% Gross NPA (%) 1.07% 0.81% PAT(Rs. Cr) 76 73 ROA(%) 85 7.43% 7.30% 7.30% Q4 FY 21 Q1 FY 22 Q2 FY 22 Q4 FY 21 04 FY 21 Q1 FY22 Q1 FY 22 Q2 FY22 Q2 FY 22 APTUS™#15Performance Highlights (Year on Year) Disbursement(Rs. Cr) 15 AUM (Rs. Cr) 3531 27% 4482 489 37% 668 7.89% NIM(%) 9.09% Sep 2020 Sep 2021 H1 FY 21 H1 FY 22 H1 FY 21 H1 FY 22 Gross NPA (%) 0.67% Sep 2020 0.81% 122 PAT(Rs. Cr) 30% 7.30% 159 ROA(%) 7.43% H1 FY 21 H1 FY 22 H1 FY 21 H1 FY 22 Sep 2021 APTUS™#16Consistent NIMS Yields/Cost of Borrowings (%) 17.40% 17.30% 17.20% 17.03% 16.95% 17.15% 17.11% 17.08% 17.03% 16.99% 16.95% 9.80% 9.50% 9.80% 9.70% 8.43% 9.22% 8.93% 8.43% 7.86% 7.96% 7.86% FY 18 FY 19 FY 20 FY 21 H1 FY 22 JUN 20 SEP 20 DEC 20 MAR 21 JUN 21 SEP 21 NIM (%) 7.90% 7.50% 7.40% 9.09% 8.60% 9.03% 9.09% 8.60% 8.15% 7.89% 7.45% FY 18 FY 19 FY 20 FY 21 H1 FY 22 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 16 APTUS™#17Opex and ROA 4.10% 3.80% 3.40% 2.70% 2.74% Opex (%) 2.92% 2.85% 2.77% 2.70% 2.78% 2.74% FY 18 FY 19 FY 20 FY 21 H1 FY 22 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 ROA (%) 7.43% 7.43% 7.30% 7.01% 6.20% 6.10% 7.30% 7.30% 7.30% 7.22% 6.87% FY 18 FY 19 FY 20 FY 21 H1 FY 22 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 17 APTUS™#1818 Asset Quality Collection efficiencies (%) 99.20% 98.23% 100.78% Covid 2 impact 94.98% 99.66% 7.91% 10.01% 30+ DPD (%) 8.68% 10.95% 10.08% Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Gross NPA (%) Net NPA (%) 0.76% 0.67% 0.67% 1.07% 0.81% 0.47% 0.40% 0.38% 0.84% 0.60% Sep 2020 Dec 20 20 Mar 2021 Jun 2021 Sep 2021 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 APTUS™#19Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix Sources of funds mix (%) IFC,MF(15.91%) Others(*) (5.22%) No Exposure to Short term loan incl CPS 20+ Lender Relationships NHB International Finance Corporation NHB(29.37%) Banks(49.49%) Avg. tenure of H1FY22 FY21 FY20 borrowings 81.2 83.3 83.2 19 • Credit Rating A+ by ICRA and CARE Others represents Securitisation Public Sector Private Sector DFI HDFC Bank Federal Bank SBI Bank of Baroda Axis Bank DCB Bank PNB Bank of India APTUS™#20ALM Surplus 20 20 Position as on 30 Sep 2021 (Rs.Cr) Surplus 825 <3 months 414 1239 91 3-6 months 257 348 210 6m to 1 year 535 745 1393 547 1 to 3 years 1940 3 to 5 years 747 1100 1847 5 to 7 years 254 1556 1302 7 to 10 years 222 1467 1689 >10 years 152 633 481 Outflows Inflows APTUS™#21Comfortable liquidity position 21 21 Particulars Cash and Cash Equivalents Opening Liquidity Add: Principal repayments and surplus from operations Less: Debt repayments Closing Liquidity Rs. Crores As on 30 Sep Q3 FY 22 Q4 FY 22 Q1 FY 23 2021 736 736 770 823 Going slow on additional borrowings • High cost loans being prepaid Rs.823 crores available for business upto March 2022 202 239 276 168 187 177 770 823 923 APTUS™#22Key Growth Strategies 22 22 ୮ 6 ך Continued Focus on Existing Segment Deeper Penetration in Existing Markets Reduce Cost of Borrowings • Ticket Size in INR 0.5 - 1.5mn range • Large headroom in new to credit, retail segment • • Maintain different templates of customer profiles to increase business while managing risks Contiguous expansion and increasing penetration Branch expansion in new markets - Maharashtra, Odisha and Chhattisgarh • Diversification of borrowing profile Continue to improve credit ratings. APTUS™#23Experienced and Well Diversified Board 23 23 CMD WestBridge Non-Executive Nominee Directors M. Anandan Chairman & Managing Director Sumir Chadha Nominee Director - WestBridge S. Krishnamurthy Former MD and CEO, SBI Life Insurance Non-Executive Independent Director VG Kannan Former- MD, SBI Non-Executive Independent Directors K. M. Mohandass Partner, KM Mohandass & Co. KP Balaraj Nominee Director - WestBridge Krishnamurthy Vijayan Former MD, JPM Asset Mgmt. Non-Executive Directors Mona Kachhwaha Director - Impact Investors Council Shailesh J. Mehta Partner, Granite Hill Capital Partners Suman Bolina Executive Managing Partner, Sri Santhi Corp. APTUS™#24Stable Management Since Inception 24 24 Balaji P ED & CFO Several years of experience in finance, treasury, banking, fund raising A M.Anandan Chairman & Managing Director 4 decades of of experience in Financial Services Subramaniam G ED Chief of Business and Risk - Several years of experience in leniding (financial products), risk management, operations and collections C.T. Manoharan Executive Vice President - Business Development Rich experience in housing finance industry across sales, channel and distribution management Sarath Chandran D Executive Vice President- Collections and Technical Niche experience in collections and technical in housing finance industry V.Krishnaswami Vice President - Information Technology Experience in strategizing and implementing digital technology solutions,, IT designs and, infrastructure. N.Srikanth Vice President - Human Resource Seasoned Professional with experience in HR planning, recruitment, training, induction, employee relations and engagement APTUS™#25Diversified Shareholding Shareholding Pattern as on 30 Sep 2021 25 Others (4.02%) DII(5.05%) FII(28.02%) Founder Promoter - M.Anandan (25.14%) Investor Promoter - WestBridge(37.37%) Top Institutional Shareholders as on 30 Sep 2021 Investor details % of holding Malabar Select Fund 8.54% Steadview Capital 3.83% SCI Investments (Sequoia) 3.24% Madison India 2.80% Genesis 1.82% Ward Ferry 1.61% Capital Research 1.27% Neuberger Berman 1.12% Aberdeen 1.06% DSP Mutual Fund 0.65% APTUS™#2626 Annexures APTUS™#27Consolidated Statement of Profit and Loss(*) Rs. Crores Growth Q2 FY 22 H1 FY 22 Particulars Q2 FY 22 Q2 FY 21 H1 FY 22 H1 FY 21 over Q2 over H1 FY 21 FY 21 Interest income on loans 191.69 150.69 370.28 294.31 Processing fees and other income 11.55 6.38 18.83 9.90 Interest expense 55.25 49.76 110.75 100.70 NIM 147.99 107.31 Operating expenses 31.18 278.36 203.51 22.50 59.26 43.66 38% 37% ECL Provision/NPA 7.46 1.08 14.63 2.46 Profit before tax 109.35 83.73 204.47 157.39 31% 30% Provision for Taxation 24.13 18.40 45.74 34.93 Profit After Tax 85.22 65.33 158.73 122.46 30% 30% (*) Based on Ind AS 27 APTUS™#28Consolidated Statement of Assets and Liabilities(*) Rs. Crores Particulars Sources of Funds Share capital Reserves & Surplus 30-Sep-21 31-Mar-21 99.12 94.93 2,603.45 1,884.52 Total Networth 2,702.57 1,979.45 Borrowings 2,394.04 Other liabilities and provisions 71.36 Total 5,167.97 2,507.97 32.73 4,520.15 Application of Funds Loan Assets 4379.03 3989.80 Fixed Assets 2.65 Liquid Assets - Bank FDs, MFS 738.62 Other Assets 47.67 Total 5167.97 2.75 490.54 37.06 4520.15 28 (*) Based on Ind AS APTUS™#29Empty#3030 30 RoA Tree Particulars H1 FY 22 FY 21 FY 20 FY 19 Revenue from operations/Avg Loan book 17.72% 17.60% 18.50% 17.80% Other Income/Avg loan book Total Revenue/Avg loan book Finance cost/Avg loan book 0.49% 18.21% 5.18% Spread/Avg loan book 13.03% 0.50% 18.10% 19.30% 18.50% 5.70% 6.80% 6.40% 11.50% 11.10% 10.70% 0.80% 0.70% Operating expenses/Avg loan book 2.74% 2.70% 3.40% 3.80% Credit cost/Avg loan book 0.68% 0.16% 0.10% 0% PBT/Avg loan book 9.77% 9.50% 9.10% 8.40% PAT/Avg loan book PAT/Networth 7.43% 7.30% 7.01% 6.10% 14.09% 13.66% 17.52% 17.43% APTUS™#3131 Thank You APTUS™