#1Investor Presentation - Q1 FY23 शं HDFC Life Sar utha ke jiyo!#2Executive summary: Q1 FY23 $ Revenue & Scale Profitability & Cost Growth 20% Individual WRP % CY 26.8% New Business Margin (NBM) Market Share PY 26.2% 14.6% 1. 2. 2 ***** Customer & Capital CY 88% 13th month persistency1 PY 86% Rs (Bn.) 46.2 Rs (Bn.) 5.1 Overall 99.6% Renewal premium VNB Growth 19% Growth 25% Claim settlement ratio (FY22) Individual 98.7% Rs (Bn.) 2,001 Rs (Bn.) 3.7 CY AUM Growth 10% Profit After Tax (PAT) Complaints per 10K policies² Growth 21% PY 22 25 29 Rs (Bn.) 297.1 Jun'22 178% CY 14.9% IEV Operating Solvency EVOP 16.5% exp. ratio Mar'22 176% PY 12.5% Excludes single premium Complaints data (excluding survival and death claims) for FY22 & FY21 HDFC Life#3Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#4Consistent, predictable, sustained performance Holistic growth Consistent track record over multiple periods New business premium Renewal premium ~2X >2x 242 1.5x 218 ~3X 113 122 80 40 FY14 FY18 FY22 FY14 FY18 FY22 Protection APE² 13.2 >2x N4X 6.2 1.6 Annuity new business VNB FY18-22 >2X FY16-20 A>2.5x FY17-21 >2x 26.8 21.9 19.2 12.8 9.2 7.4 FY16 FY17 FY18 FY20 FY21 FY22 48.7 ~5X ~7X 10.7 1.6 FY14 FY18 FY22 FY14 FY18 FY22 AUM 13M persistency³ dd9+ ~ ~ +10pp 81% ~2X 2,042 71% >2x 1,066 506 Rs bn Embedded Value¹ FY18-22 ~2X FY16-20 >2x FY17-21 >2x 300 266 207 152 125 87% 102 Mar 31, 2014 Mar 31, 2018 Mar 31, 2022 FY14 FY18 FY22 1. Including cash payout of Rs 7.3 bn for acquisition of Exide Life, but excluding Exide Life's EV of Rs 29.1 bn 2. Based on Overall APE 4 3. Excluding single premium FY16 FY17 FY18 FY20 FY21 FY22 HDFC Life#5Demonstrating resilience in the current environment (1/2) Strong, sustainable growth Rs bn Bounce back in CP volumes on the back of higher disbursements¹ Overall 8.1% 9.2% 9.3% 8.9% mkt share Pvt. mkt 14.2% 15.5% 14.8% 14.6% share 17% -19% 55% 96% YOY 19% 17% 16% 20% growth 70.0 81.5 59.7 FY20 Balanced product mix 5 17% Total APE 4% 7% 24% 20% 28% 15.6 FY21 FY22 Q1 FY23 23% 53.0 42.4 34.2 FY20 14.3 FY21 FY22 Q1 FY23 YoY Growth Focus on diversified channel mix² Total NBP 9% 7% 6% 7% 13% 9% 14% 13% 14% 16% Par 19% 19% 13% Non Par Savings 22% 22% ■ULIP 9% Protection 61% 60% 55% 56% Annuity ■Group Retirals 32% FY20 FY21 FY22 Q1 FY23 HDFC Bancassurance ■ Direct ■Agency Brokers and others Life 1. Based on Credit Protect new business premium 2. Based on Individual APE#6Demonstrating resilience in the current environment (2/2) 16 Improving Persistency¹ 86% 51% 88% 54% Q1 FY22 _Q1 EY23_ 13th 61st Strong growth in renewal premium 19% 46.2 38.9 Q1 FY22 Q1 FY23 Focus on quality of business and providing superior customer experience Backed by consistent improvement in overall persistency 1. For individual business; Excluding single premium and fully paid up policies Steady expansion in New Business Margins 25% 26.8% 26.2% Q1 FY22 I Q1 FY23 T VNB Growth Stable solvency position 176% 178% Mar 31, 2022 | Jun 30, 2022 Rs bn Consistent growth in VNB on the back of topline growth and increase in margins ■ VNB has grown at 24% CAGR between FY17-22 ☐ Successfully raised Rs 3.5 billion of sub-debt in Q1 FY23 ■ Paid final dividend of Rs 1.70 per equity share HDFC Life#7Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#8Key elements of our strategy 18 1 2 3 4 5 Focus on profitable growth Ensuring sustainable and profitable growth by identifying and tapping new profit pools Diversified distribution mix Developing multiple channels of growth to drive need-based selling Market-leading innovation Creating new product propositions to cater to the changing customer behaviour and needs Reimagining insurance Market-leading digital capabilities that put the customer first, shaping the insurance operating model of tomorrow Quality of Board and management Seasoned leadership guided by an independent and competent Board; No secondees from group companies "Our continuous focus on technology and customer-centricity has enabled us to deliver consistent performance even in the most challenging times" HDFC Life#9Profit Accounting Economic Profit Focus on profitable growth FY20 FY21 FY22 Q1 FY22 Q1 FY23 Rs bn New business Margin 25.9% 26.1% 27.4% 26.2% 26.8% Value of new business 19.2 21.9 26.8 4.1 5.1 Profit after tax (PAT) 13.0 13.6 12.1 3.0 3.7 Underwriting profits 10.9 7.3 4.41 0.41 2.6 Shareholders' surplus 2.1 6.3 7.7 2.6 1.0 29.9 32.3 34.9 Underwriting profits breakup 6.5 9.8 -6.1 -7.2 -19.1 -25.0 -30.5 1. Post accounting for impact of excess mortality reserve (EMR) 9 FY20 FY21 Profitable distribution Diversified growth mix innovation leading Market- Reimagining Quality of Board and insurance management FY22 Q1 FY22 Q1 FY23 ■Backbook Surplus ■New Business Strain HDFC Life#10Analysis of change in IEV 300.5 5.9 211.9 88.6 IEV at Mar 31, 2022 EVOP - 11.7 EVOP1% 16.5% 5.1 0.7 11.7 3.4 VNB Unwind Operating variances Economic variances Dividend & ESOP exercises Adjusted Net worth (ANW) Value of in-force business (VIF) ■ Operating variance continues to be positive and in line with our assumptions 1. EVOP% calculated as annualised EVOP (Embedded Value Operating Profit) to Opening EV 10 297.1 211.3 85.8 Rs bn IEV at Jun 30, 2022 Profitable growth distribution mix Diversified innovation leading Market- insurance Reimagining management Board and Quality of HDFC Life#11Diversified distribution mix enabled by multiple levers Proprietary¹ 1.2L+ Agents 383 Branches 48 Digital Branches² www.hdfclife.com HDFC Life App NBFCs, MFIS HDFC SALES Utkarsh Small Finance Bank Aapki Ummeed Ka Khaata Banks, SFBs, Other CAS HDFC BANK Saraswat Bank DhanlaxmiBank established 1927 The Sara Clive Bank Ltd (A Scheduled Bark Bandhan Bank IDFC FIRST Bank b RBL BANK S Union Bank of India AU SMALL AU FINANCE BANK DCB BANK YES BANK Capital Small Finance Bank AXIS BANK SOUTH INDIAN Bank equitas Small Finance Bank SURYODAY A BANK OF SMILES JUJJIVAN UJUNAN SMALL FINANCE BANK TJSB SAHAKARI BANK LTD. DULED BANAK MULTI-STATE HDB FINANCIAL SERVICES TATA CAPITAL CreditAccess Grameen pab Housing Finance Limited ⭑VFS MANAPPURAM FINANCE LIMITED Make Life Easy Fullerton India Chaitanya Chola (WW) SIRVAD M authoot MICROFIN BAJAJ FINANCE LIMITED TATA Motorsfinance driven by trust nabblins Brokers & Aggregators IBLUECHIP EXPERT ADVICE. EASY INVESTING Integrated since 1974 Investments Simplified policy bazaar Coverfox.com Ni INSURANCE BROKERS Compare. Buy. Save InsuranceDekho com 6 BajajCapital ROBINHOOL CE BROKER KNOWLEDGE ON YOUR STOE Probus Insurance C-NTRUM Group, Pension & International Business NPS Corporates Group Annuity (MPH/CA) 160+ Superannuation Funds Rep Office NRI - 1. 11 2. Partnerships in emerging eco-systems across Health, E-commerce, Auto, Telecom, Mutual Fund, Fintech AXIS ASSET MANAGEMENT Apollo Health and Lifestyle Ltd HOME CREDIT Clix Capital पे Ofisdom LENDINGKAT PhonePe realme payसा turtlemint mswipe.TM FUNDSINDIA Proprietary channels include Agency, Direct and Online Digital Branches: Virtual branch for servicing customer requests remotely through dedicated app and webpage Equity Brokers & Wealth ZERODHA ICICI Securities Edelweiss Ideas create, values protect HDFC securities MOTILAL OSWAL Investment Services GEOJIT Angel Broking sbi securities Profitable distribution Diversified leading Market- Quality of growth insurance Reimagining Board and mix innovation management HDFC Life#12Balanced product mix in agency enabled by technology and training BUZZ Secure communication platform for all agency stakeholders Contest launch, updates, qualification, reward fulfillment process and status FAME AI & ML based customer interactions and opportunities Theme based dossier focused on giving consumer insights Receive nudges to improve customer reach out The Selling Skills Program In-depth program to train and groom our FLS on essential selling skills Agency Life Skilling and engagement platform to drive higher productivity Analytics based distribution & activation drives & enablers Technology Medi Easy - Term Digital tool for smooth on-boarding of term customers 12 Easy to fill forms and pay premiums HDFCLI ALA Agency Training Partner Portal Check performance reports & commissions Trigger customer communication and reminders MIS, ranking, contest earnings, opportunities and much more IC38 Audio Online Training Easier and simpler way to complete IC38 training ✓ Available in vernacular language ✓ Interesting & engaging audio content Sales Planning Simulation First of its kind, unique sales planning simulation for branch heads enabling them to learn and practice effective sales planning in a simulated environment Profitable growth distribution Diversified leading Market- Reimagining Quality of mix innovation insurance Board and management HDFC Life#13Bancassurance powered by innovation, technology and people Product proposition Comprehensive product suite across par, non-par, term, annuity, ULIP Combo insurance products Partner experience & engagement Tech & Digitization Defined engagement metrics Insta Quote InstaPlan measured digitally CSR Joint CSR¹ INSTAIN sure CORPORATE initiatives that SOCIAL strengthen relationships One stop solution for generating illustration PASA¹ using analytics Distribution Strong presence across Metro, Urban & Rural geographies with ~7K Sales force Capability building & resourcing Strong growth & presence in alternate Y UNite channels viz. Virtual, Salary & HNI Learning on the go: mobile nuggets for skill enhancement Comprehensive engagement and training programs for sales teams Profitable distribution Diversified leading Market- Quality of growth insurance Reimagining Board and mix innovation management Innovative term products limited pay, RoP1 and riders Mass distribution products -POS¹ & Saral plans Innovative retirement Products through annuity & pension Dedicated HNI¹ cell Virtual insta assistant for sales & service teams Cloud Cloud based customer Telephony calling solution for sales Pre-conversion verification via Chat Reducing need of physical presence by digitization through WISE² & Non Assisted PCVC3 Digital sales verification via WhatsApp chat, video app or calling Strong YoY growth in Group insurance through Credit Protect Structured rewards and recognition program Increasing business pie through POS products attached in assets Gamified learning experience through mobile app & simulations POS: Point of Sales; PASA: Pre-approved Sum Assured; RoP: Return of Premium; HNI: High Networth Individual; CSR: Corporate Social Responsibility WISE: Frontline digital tool, enables virtual onboarding of customers in the presence of a HDFC Life representative 1. 2. 13 3. PCVC: Pre Conversion Verification Call HDFC Life#14Simplified sales ecosystem for Direct channel Leads Management Insta G2 ▪ Lead capture ■▪ Lead lifecycle management Sales & Service Governance & Review ✓ Live WIP 14 Cloud Telephony ■ Lead assignment Outgoing customer call management TEBT ■ Pitch products & generate quotes ✓. InstA SimplyQlik T MSD submission Serv ■ Form filling & application ✗Insta ☑ Customer 360 ■ Customer servicing ■ Policy servicing Input commitment from Sales force Tearn WAR ◉ Weekly review with Manager Qlik Q Tnsta G2 ■ Check performance ■ Dashboards Profitable distribution Diversified growth mix innovation leading Market- insurance Reimagining Quality of Board and management HDFC Life#15¡Earn, HDFC Life's hyper-personalized actionable nudge engine ¡Earn: ML-based mobile platform for sales = Tearn NRV My Tasks Drive right behaviours Complete Tasks to earn * 595. today View Tasks Enable activation My Earnings (January MTD) View Details Commission 559 Agency Life 559 Task Reward १० Maximize earnings 15 My Rank (For January) 9 Thane # Dashboard Rankings Key nudges / tasks created to work along with existing technology Lead generation & meeting ■ Sales training Facilitate medical tests ■ Product mix ☐ Persistency Avert freelook-ins Prospect engagement Document collection Rider attachment Improved activity & productivity Direct Channel Agency Channel View Details 20 124 15x 224 2019 Mumbai 2 Central * More tasks closed by front line sales (FLS) 6.5x More tasks closed by agents P Earings Boost retention Tasks LifeStore 16% Avg. Y-o-Y increase in NoP per FLS 30% Avg. Y-o-Y increase in NoP per agent 13% Avg. Y-o-Y increase in EPI per FLS 20% Avg. Y-o-Y increase in EPI per agent Better engagement Performance measured in relative terms between a Habitual iEarn User vs. Non Habitual ¡Earn User Profitable distribution Diversified growth leading Market- mix innovation Quality of 1 Reimagining Board and insurance management HDFC Life#16FY23 Expanding market through consistent product innovation FY15-18 Launched before 2015: Group Credit Click 2 Invest Retirement & pension Protect Woman Youngstar FY19-22 growth Profitable mix distribution Diversified leading Market- insurance Reimagining innovation Click 2 Protect 3D Plus (Protection) Pension Guaranteed Plan (Annuity) FIC Sanchay Plus (Non- par savings) ✓ Sanchay Par Advantage Fic Classic One (ULIP) Cancer Care (Health) * (Participating) Group Poorna Suraksha (Group term insurance) Sanchay Fixed Maturity Plan (Non-par savings) HDFC Life QuickProtect (Protection) Systematic Retirement Plan (Annuity) Systematic Pension Plan (Par Pension) Pension plan that offers an opportunity to participate in the profits of the participating fund of HDFC Life by way of bonuses payable at the time of vesting Click 2 Protect Optima Secure Comprehensive combi plan that offers life and health cover for you and your family Click 2 Protect Corona Shield Comprehensive combi plan that offers life and health cover for Hospitalization/home care treatment in case of COVID-19 16 Quality of management Board and HDFC Life#1750+ years Risks Addressed Asset Drawdown Addressing customer needs at every stage of life <25 years 25-35 years Objective Simple Savings Borrowing 36-50 years Investments Needs Product Offerings Pay off mortgage Retire Medical care First Job Medical care Get married Plan for retirement Medical care Medical care Buy new car Child's education Buy Home Product mix across age categories¹ Mortality Morbidity Net Worth Longevity Interest Rate Profitable distribution Diversified leading Market- Quality of growth insurance Reimagining mix innovation management Board and 26% 18% 28% 32% 39% 32% 5% 1% HDFC 2% 17% Life UL 35% 28% Par 33% 31% Non par 29% 32% savings Protection 4% 8% Annuity 0% 0% 17 1. Based on Individual APE for Q1 FY23; Percentages may not add up due to rounding off effect#18Our approach to retiral solutions 1. NPS R ■ Largest Pension Fund Manager (PFM) in Retail and Corporate NPS segment, with AUM of Rs 301 bn¹ Registered strong AUM growth of 61% in Q1 FY23 2. Immediate / deferred annuity Largest player in the private sector Servicing 160+ corporates and >12,000 lives covered in Q1 FY23 ■ Market share grew from 35% in Jun'21 to 38% in Jun'22 amongst all PFMs Company has over 1.2 mn customers - ~0.8 mn in retail segment and ~0.4 mn in corporate segment #2 POP2 in new Corporate and Corporate Subscriber business 3. Group superannuation fund Managing funds for 160+ corporates under superannuation scheme Ranked #1 based on AUM NPS AUM Doubled in 15 months 61% 284 301 52 164 FY19 FY21 FY22 Q1 FY23 YoY growth 1. As on Jun 30, 2022 2. POP: Point of presence for enabling opening of accounts on a platform 18 Annuity portfolio 36% 164 176 54 116 Rs bn 11 Profitable growth mix distribution Diversified innovation leading Market- Quality of insurance Reimagining Board and management FY19 FY21 FY22 Q1 FY23 HDFC Life#1919 Protection Direct Banca 2 Product mix across key channels¹ Segment FY20 FY21 FY22 Q1 FY23 Segment FY20 FY21 FY22 Q1 FY23 UL 32% 27% 29% 30% ¡UL 12% 10% 16% 14% I I Par 18% 37% 33% 30% I Par 34% 37% 33% 36% Non par savings 44% 30% 33% 33% Non par savings 40% 39% 39% 38% Term 4% 4% 4% 4% Term 12% 11% 10% 8% | | Annuity 2% 2% 2% 3% Annuity 3% 3% 3% 4% FUL 33% 29% 28% 16% UL 44% 39% 46% 45% ¡Par 14% 17% 14% 19% I Par 1% 1% 2% 2% I Non par savings 20% 16% 27% 35% I Non par savings 18% 29% 30% 40% ¡Term 4% 3% 3% 2% Term 37% 30% 20% 10% I I I !Annuity 29% 35% 28% 28% Annuity 1% 2% 2% 3% Segment FY20 FY21 FY22 Q1 FY23 Company UL 28% 24% 26% 25% ¦ Par 19% 34% 30% 30% Non par savings 41% 31% 33% 35% ~40% of business with policy term <=10 years; ~20% of received premium in single-pay policies for Q1 FY23 Term 8% 7% 6% 5% Annuity 4% 5% 5% 6% FY20 FY21 FY22 Q1 FY23 !Based on Total APE 17% 13% 14% 17% Based on NBP 27% 20% 24% 32% 1. Based on Individual APE, Term includes health business. Percentages are rounded off 2. Includes banks, other corporate agents and online business sourced through banks / corporate agents 3. Includes business sourced through own website and web aggregators Annuity FY20 FY21 FY22 Q1 FY23 Based on Total APE 4% 5% 5% 7% I Based on NBP 16% 20% 20% 23% Profitable distribution Diversified growth mix innovation leading Market- Quality of insurance Reimagining Board and management HDFC Life#20Aligned to make life simpler for customers 20 20 1 Accelerate JOURNEY SIMPLIFICATION across channels Fast track PARTNER INTEGRATION 2 3 SERVICE SIMPLIFICATION for connect and personalization 6 7 Connecting with startups through Create a digital scalable efficient Futurance¹ Architecture DATA LABS ECOSYSTEM for decision making 4 5 PLATFORMS independent buying / servicing Building resilience.. 8 9 Enable a hybrid Work From Home environment 1. Futurance: A program to collaborate with startups for harnessing cutting-edge technology growth Profitable mix distribution Diversified innovation leading Market- insurance Reimagining Quality of management Board and Strengthen Cyber Security for post-Covid world HDFC Life#21AI-based automated underwriting engine Proposal Submission Empowering a seamless customer onboarding journey Claim Prediction Model Reinsurer Rule Engine AI Based AUW1 Engine Enhanced risk assessment 72% Final UW² Decision Applications Auto Underwritten Improvement in 6% STP³ Rate Proposal Form Process Initiation Short & Long Term Claim prediction Red-Amber-Green segmentation Questionnaires Reinsurer Rules Standard Process Industry 1st Deep Learning solution Enable Real Time decision making 2% Additional Risk Identification AUW engine implemented for savings applications 21 21 1. AUW: Automated Underwriting 1 2 3 2. UW: Underwriting 3. STP: Straight Through Processing Reduction in 12% Manual UW2 cases Profitable distribution Diversified growth leading Market- mix innovation insurance Reimagining management Board and Quality of HDFC Life#22Strengthening underwriting and simplifying customer journey Cardiac risk assessment at home for medical underwriting Cardiac risk assessment service at home promises convenience to individuals who have to undergo medicals while applying for an HDFC Life insurance policy MULTI-FUNCTIONAL SCREEN TRIANGULAR REGULATOR JOYFIT BOLD SENTS why MASSAGE FOOT PEDAL JOYFIT ■ HYDRAULIC GAS ROD RUBBER SLEEVE PLUG ■ Applicants / users step on a stepper with speed & resistance adjustments Conventional print based ECG equipment is replaced with a portable, Bluetooth and mobile connected ECG equipment for real time data recording and analysis Recording is transmitted to the remote physician for review and interpretation ■ Instead of an onsite physician, an online consultant physician is available to monitor the progress of the stress test (incl. real-time ECG) over a video call ■ The physician can talk to the site technician and the applicant/ user for any instructions *This service is currently available in Mumbai and Bengaluru 22 growth Profitable mix distribution Diversified innovation leading Market- insurance Reimagining Quality of management Board and HDFC Life#23Emphasis on digital across customer touch-points New business / purchase Digital sales journey - End-to- end digital sales, from prospecting till conversion SVAR Policy servicing - Digital Renewal collections 87% based on renewal premiums and 97% based on NOP eCCD Chat PCV1 and AVF¹ - 55% digital pre-conversion verification Maturity payouts - Email, WhatsApp and customer portal 'My Account' enabled to upload necessary docs Customer interactions TnstA Seamless support experience ~9.3 mn queries handled by instA (virtual assistant) - HOPE Life Mobile app - Significant increase in mobile app usage. 1.1 mn total users Employee / Partner engagement Physical training - 3,500+ distributors attending training programs daily Gamified contests - Launched to drive adoption of digital engagement initiatives Telemedicals - 35% of the medicals done through tele- medicals LifeEasy - 100%² eligible claims settled in 1 day; Claims initiation process also enabled through WhatsApp Insta Serv 2.0 InstaServe - OTP based policy servicing tool to handle customer queries Insta PRL Agent on-boarding - Insta PRL enabling digital on-boarding of agents. ~24K applications logged HI! WORK Uninterrupted customer assistance - Work from home enabled across the organization; Access to Microsoft Teams, Citrix RPA -Robotic Process automation handled 330+ processes remotely 24*7 self-service options - 95% of chats are self-serve via chat-bot Employee engagement - Video conference based skill building sessions with digital partners (Twitter, Google, Facebook) INSTAinsure InstaInsure - Simplified insurance buying through a 3-click journey Contact centres - Branch staff replacing call centre agents Branches - Daily tracking of employee and agent safety Partner trainings - Conducted via digital collaboration tools 23 1. PCV: Pre-conversion verification; AVF: Application Verification Form 2. Claim settlement ratio through LifeEasy (online) and WhatsApp platform, as on 30 June 2022 Quality of Profitable distribution Diversified leading Market- Reimagining Board and growth mix insurance innovation managemen HDFC Life#24Governance framework Board Committees Management Committees/Councils Board of Directors Independent and experienced Board Audit Committee Risk Management Committee Policyholder Investment Committee Protection Committee Nomination & Remuneration Committee Corporate Social Stakeholders' Responsibility Committee Relationship Committee With Profits Committee Whistleblower Committee Investment Council Claims Review Committee Risk Management Compliance Council Council ALCO1 Note: Credit Council Grievance Management Committee Information & Cyber Security Council Disciplinary Panel for Malpractices Prevention of Sexual Harassment Product Council Board Approved Committee Product Management Committee Standalone councils Business and Innovation Technology Council Persistency Council Additional governance through Internal, Concurrent and Statutory auditors 1. Asset Liability Management Council 24 2. The above list of committees is illustrative and not exhaustive Capital Raising Committee Profitable distribution Diversified growth mix innovation leading Market- Quality of insurance Reimagining Management Board and HDFC Life#25Financial risk management framework Natural hedges Protection and longevity businesses Unit linked and non par savings products ALM approach Target cash flow matching for non par savings plus group protection portfolio to manage non parallel shifts and convexity ■ Immunise overall portfolio to manage parallel shifts in yield curve (duration matching) Managing Risk Product design & mix monitoring ■ Prudent assumptions and pricing approach Return of premium annuity products (>95% of annuity); Average age at entry ~59 years ■ Deferred as % of total annuity business < 30% with average deferment period <4 yrs ☐ Regular monitoring of interest rates and business mix Residual strategy External hedging instruments such as FRAS, IRFS, swaps amongst others Reinsurance FY22 Q1 FY23 I Sensitivity Overall Non par 1 Overall Non par 1 Sensitivity remains range-bound on the back of calibrated risk management Scenario EV Interest Rate +1% Interest Rate -1% VNB Margin (2.0%) (1.4%) (2.1%) 1.6% 0.8% 1.4% EV EV 1.5% 1.6% 0.9% VNB VNB VNB Margin Margin Margin (2.5%) (2.0%) (1.5%) (2.0%) (2.6%) 1.3% EV 1.5% 25 1. Comprises Non par savings (incl Annuity) plus Protection HDFC Life#26Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#27Importance of financial instruments and triggers to buy LI¹ 73% 50% 42% 26% Life Insurance 10% 6% 4% 2% Pension Schemes Post Office Savings Health Insurance [Svaasth Bima] Bank Fixed Deposits 1% Mutual Funds Schemes [Pension Public Yojnaaye] Provident Equity/ Funds Bonds & Debentures Shares [PPF] [investment in stocks] BUY 59 52 51 50 82% Savings Bank Account For extra income when earnings are reduced due to serious illness or accident 39 Wealth generation and conservation 28 To provide for financial contingencies and life style requirements 21 To save tax To finance key milestones in life 1. 27 2. For financial protection Sabse Pehle Life Insurance For constant income after retirement Life Insurance Council IAC Study by Hansa Research, February 2022 Nos in bottom graph represent % of respondents • • Life insurance ranks amongst top 3 financial instruments Importance of life insurance as an instrument largely remains same across age groups and gender Across age-groups and regions, savings for key milestones in life like child's education, marriage, remains the top reason to buy insurance Tax savings features at bottom of the list of reasons to buy life insurance HDFC Life#28Customer Insights Women Policyholders - HDFC Life Customer Insights Participation of Women in Life Insurance¹ 3-year APE CAGR growth for women customers: 23% Women constitute >30% of policyholders, an increase of 4 percentage points over past 3 years Live your life your own way Women as a customer segment are gaining traction in Savings and Protection products Percentage of female policyholders 69% 31% 73% 27% HDFC Life Private Insurers Male Female Top 5 states where % of female policyholders is higher than all-India average . • Women comprise roughly 49% of the total population in India In 19 States/UTS², the share in no. of policies bought by women to the total policies sold is higher than the all- India average of 33% Increasingly, more women customers are opting for self State Share(%) assisted sales channels, Kerala 43 indicating rise in awareness levels Sikkim 41 Andhra Pradesh 40 Women persistency across Lakshadweep 40 demographics & geographies ~4% higher than organisation Puducherry 40 All-India average 33 1. Insights based on IRDAI Annual Report 2020-21 and HDFC Life customer data 2. UTS: Union Territories 28 HDFC Life#29Agenda 1 Performance Snapshot 2 3 Our Strategy Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#30Exide Life Performance Snapshot: Q1 FY23 30 Scale Profitability & Cost Customer & Capital Individual APE VNB Margin (Pre-OR) 13M Persistency Rs bn: 1.4 Q1 FY23: >40% Growth: 41.7% Q1 FY22: >40% Q1 FY23: 74% Others Channel Mix¹ Agency: 51% Q1 FY22: 73% Banca: 7% AUM Rs bn: 206.3 Growth: 10% Opex ratio Q1 FY23: 26% Q1 FY22: 25% Claim Settlement Ratio FY22: 99.1% FY21: 98.5% Embedded Value Renewal Premium(bn) Mar 31, 2022: 29.1 bn Q1 FY23: 4.0 Solvency Jun 30, 2022: 211% Growth: 8% Q1 FY22: 4.0 Jun 30, 2021: 219% 1. Based on Individual APE Broker: 29% Direct: 13% Par: Product Mix¹ 60% Non-par: 27% Protection: 6% ULIP: 7% HDFC Life#31Integration - Focus areas 31 Accelerating revenues Augmenting proprietary growth channels Scaling-up with cross-entity best practices and brand value Realizing cost savings ... Optimizing nation-wide geographic presence (offices, branches, hubs) Access to wider distribution network with focus on priority micro markets Rationalizing overlapping/ redundant spends E.g. Brand spends, software maintenance, AMC Access to wider product portfolio for sales force Driving scale benefits for integrated entity Enhancing customer experience and sales productivity through digital tools Embedding digital operating model at scale Aspiration to close NBM gap over 6-9 quarters HDFC Life#32Exide Life transaction timeline Step 1: Announcement of transaction (Sep 3, 2021) Step 3: Application filed with IRDAI and CCI for acquisition, ongoing interactions Step 5: Integration Phase-1 (9- 12 months) Step 7: Final IRDAI approval for merger (expected in H2 FY23) ₹ HY 1. 32 山 Step 2: Shareholders' approval for issuance of shares (Sep 29, 2021) Step 4: Receipt of approvals. Exide Life becomes 100% subsidiary of HDFC Life (Jan 1, 2022) Step 6: Approval obtained from NCLT¹ for triggering the merger process, including intimations to various regulatory authorities and related NOCS (Jun 27, 2022) Step 8: Integration Phase-2 (12-18 months post merger) Completed WIP To be initiated Final NCLT approval to be received post receipt of NOCs from regulatory authorities HDFC Life#33Agenda 1 Performance Snapshot 2 3 Our Strategy Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#34ESG at a Glance Ethical Conduct & Governance ESG Focus Areas Responsible Investment Diversity, Equity and Inclusion (DE&I) Holistic Living Sustainable Operations ETHICS Active engagement with external agencies including MSCI, S&P Global (DJSI) 34 External Validation • MSCI rating 'BBB' in February 2022 • S&P Global (DJSI) score 2019) 1 44 in 2021 (14 in 1st Integrated Annual Report published in June 2022 CRISIL Score - 60 in 2021 Actuarial Financial ESG HDFC Life#35Ethical Conduct & Governance Governance structure & Compensation Framework О STANDARDS COMPLIANCE POLICIES REGULATIONS RULES Corporate governance policy Commitment to ethical business practices о Includes Corporate structure and stakeholder management Board Diversity policy Board evaluation & independence 。 Five independent directors 'Fit and Proper' as per regulation Risk management and BCM strategy accept RISK MANAGEMENT reduce transfer Enterprise risk management (ERM) framework 'Three Lines of Defense approach' Reviewed and approved by the Board mitigate avoid control Risk oversight by Board of Directors Review in multiple management forums Information/Cyber Security Information/cyber security ISO 27001:2013 and ISMS assessment program; Data Privacy Policy ① Fraud risk management Values program; Disciplinary Panel for Malpractices; Fraud monitoring initiatives Business ethics and compliances STOP 30% women as on 31st March, 2022 Performance Management System based on the principles of balanced scorecard О Remuneration policy Seeks to balance the fixed and incentive pay Disclosed in the annual report Corporate Governance Award Best Governed Company in listed segment: Large category at ICSI¹ National Awards for Excellence in Corporate Governance о Modes of Risk awareness Trainings, E- mailers, Seminars, Conferences, Quizzes and Special awareness¦ Drives Sensitivity analysis and stress testing Business Continuity Management (BCM)- Creation of a recovery plan for critical business activities 1. ICSI: Institute of Companies Secretaries of India 2. PRSH: Prevention and Redressal of Sexual Harassment 3. BRR: Business Responsibility Report 4. DEI: Diversity, Equity and Inclusion 35 5. AML: Anti Money Laundering Code of Conduct Whistle blower Policy PRSH² AA BRR³ & Stewardship Code COMPLIANCE 8 DO Privacy Anti Bribery & Corruption Policy Human Rights & DEI4 AML5 Policy Actuarial Financial ESG HDFC Life#36Responsible Investment Responsible Investment Policy Objective To generate optimal risk adjusted returns over the long term " RI framework RI and stewardship policy in place Applicable to all major asset classes Head of Research ensures that ESG is incorporated into overall Research and Investment process ESG issues covered in voting process Sustainable Equity Fund What is Sustainable Equity fund & why invest in it? This fund shall seek to generate returns from investing in companies with high ESG standards and commensurate score, create value for all stakeholders with lower risks & generate sustainable long-term returns. Actuarial Bolstering commitment towards Responsible Investment Became signatory to United Nations supported Principles for Responsible Investment (UN-PRI) PRI Principles for Responsible Investment Responsible Investment Governance A ESG Governance Committee at the investment team level comprises of Chief Investment Officer, Head of Fixed Income, Head of Research, Fund Manager of ESG Fund and dedicated ESG research analyst Change begins with you. And your investments. HDFC Life ainable Equity Fund Responsible Investing with Sustainable Equity Fund. 36 Financial ESG HDFC Life#37Employee Engagement & Diversity, Equity and Inclusion (DEI) Actuarial Financial ESG HDFC Life Special Recognition Great Places to Work о top 100 Best Places 39th amongst о Best workplaces for Women 2021- Great Place to Work Institute Avtar top 100 Places о о Best Workplaces for Women 2021 Economic Times Employee diversity, equity & inclusion Promoting DEI ally ship: leadership development, communication, strengthening policies, aligning workforce through Celebrate YOU program of the Company Celebrate YOU Brandon Hall awards - Learning Strategy, Simulation training, & Social Talent Acquisition Attracting talent Employee engagement Emotional and well being assistance program for employees and their families Doctor on Call: Unlimited free consultation E-Sparsh: Online query & grievance platform о Hybrid work model and flexi hours to attract gig workers O Family integration programs Platform for employee engagement: CEO Speaks, HDFC Life Got Talent, e-appreciation cards In-house fitness and wellness app Click2Wellness - о о 26% women employees Promoting diverse talent pool (work profiles for second career women, specially-abled) - #MyJobMyRules Launched official DEI page on our website highlighting various initiatives Gender transition surgery covered under mediclaim policy О о ○ о Robust employee referral schemes (>50%) Hire-train-deploy model through tie-up with reputed learning institutions HR tech: in-house application tracking system Training & development Career coaching and development interventions; woman mentoring Mobile learning app for self-paced learning O Training for all including employees, contractors, channel partners / Virtual product training ○ о Skill Up: Curated online training programs from reputed universities Average hours per FTE of training and development: 86 hours 1. ESOPS: Employee Stock Options 37 Talent management/retention Special programs for campus hires; Talent development interventions for leadership Career microsite, job portal Internal Career Fair for employees Long term incentive plans in the form of ESOPs¹ and cash to attract, retain and motivate good talent Elaborate succession planning for Key Managerial Personnel, critical senior roles Gender neutral Use of Dress code policy Maternity policy terms like primary and secondary caregiver instead of using terms like parents, mother/father, man/woman#38Holistic Living: Inclusive Growth FY 2021-22 Customer Highlights Claim settlement ratio (individual & group) 99.6% Customer Satisfaction Score for March'22 88.9 % Persistency ratio (13th month) 92% (including single premium and fully paid up policies) COVID claims (net) Rs. 818 crore, Count 15,293 CSR Numbers Number of lives covered 5.4 crore Rural sector 1,89,147 Social sector 1,00,87,909 MFI lives covered under CP 3,14,55,858 States and UT's covered 23 Sustainable Development Goals covered 12 38 Sector-wise budget break-up 3% 21% 24% 52% Education and Livelihood Environmental Sustainability Health care and Sanitation Others CSR Spends CSR beneficiaries* Rs. 17.4 crore 4.6 lakh *CSR beneficiaries include 1.60 lakh beneficiaries impacted in completed projects and 3.07 lakh beneficiaries from on-going projects Actuarial Financial ESG HDFC Life#39Holistic Living: Delivering superior customer experience Customer Centricity 39 1. Journey simplification - frictionless sales and service Simplifying buying journeys through platforms like LifeEasy (online term purchase) Document simplification & elimination Contactless services- new normal OCR: Optical Character Recognition 0 Online claim processing for eligible customers via EasyClaims platform OCR: Enabling digital document submission and verification Straight through processing of maturity payouts for verified accounts Leveraging advanced technologies for personalization and better customer experience (CX) NEO - Cognitive bots policy queries answered within 2-3 clicks Personalization - Pre-approved sum assured for customers based on risk profile Digital Life Certificate for collecting survival proof from senior citizens Contactless branches by leveraging face recognition technology Customer Satisfaction Score (%) as on 31st March 2022 - 88.9 Actuarial Financial ESG HDFC Life#40Actuarial Financial ESG Energy and water 。 Since 2014 only 3 or 5 star rating air - conditioners used 。 94% of branches use LED based lighting system o Use of sensor based urinals and water taps o Total purchase of energy from renewable sources: 2,39,788 kWh during FY 2021-22 25 new water purifiers installed in FY 2021-22 to replace bottled drinking water De-carbonization roadmap and way forward Key initiatives & action points for FY23: 。 TCFD (Task Force on Climate-Related Financial Disclosures) 。 SBTI (Science Based Targets initiative) 。 Carbon neutrality strategy & roadmap Digitization - Reduction of Paper Usage Introduction of E-business cards & ID cards О О Online /e-forms for customers о Annual report FY20 & FY21 digitally communicated O Demat i.e. digital policy accounts for 38% of our new business Bio-diversity 11 city forests created using Miyawaki method; 69,603 trees planted in total GHG inventory o Scope 1 emissions 0.42 met. ton. CO2e per FTE o Scope 2 emissions - 0.41 met. ton. CO2e per FTE o Scope 3 emissions 0.03 met. ton. CO2e per FTE о Waste management RECYCLE REUSE REDUCE 25,850 Kgs of e-waste recycled/ refurbished/disposed in FY22 ○ 301.5 Kg of paper cups & paper disposed for recycling FY 2021-22 о No single-use plastics ☐ Bio-degradable garbage bags Cafeteria with reusable plates, cutlery, wooden stirrers etc. Procurement of plastic water bottles discontinued at Pan-India locations Sustainable Operations 40 40 HDFC Life#41Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#42Improvement in overall persistency trends¹ Across key channels (%) 93 87 82 80 60 Agency 70 89 Across key segments (%) 95 90 86 76 222 42 Savings (Traditional) 99 66 80 80 74 68 53 97 40 92 88 81 Banca Direct ■13th month 25th month 37th month 49th month 61st month 82 74 71 68 51 Savings (UL) 71 1 93 88 81 76 68 Protection ■13th month ■25th month ■37th month ■49th month ■61st month 1. For individual business; Including single premium and fully paid up policies 93 98 86 CY (Q1 FY23) 80 72 58 Company PY (Q1 FY22) 00 90 82 73 67 40 53 Company Actuarial Financial ESG HDFC Life#43Improvement in overall persistency trends¹ Across key channels (%) 91 83 72 68 59 Agency Across key segments (%) 90 83 69 69 59 61 60 Savings (Traditional) 86 77 69 69 64 53 89 68 80 67 67 63 33 56 Banca Direct ■13th month 25th month 37th month 49th month 61st month 80 70 68 65 49 Savings (UL) 93 88 81 76 Protection ■13th month ■25th month ■37th month ■49th month ■61st month 1. For individual business; Excluding single premium and fully paid up policies 43 88 80 80 CY (Q1 FY23) 69 69 64 54 Company PY (Q1 FY22) 86 667 72 67 65 63 51 Company Actuarial Financial ESG HDFC Life#44Improving VNB trajectory 25% Rs bn 0.2 0.4 0.1 5.1 0.9 4.1 -0.6% 26.8% Q1 FY22 Impact of higher APE Change in assumptions New Business Profile ¹ Fixed cost absorption Q1 FY23 VNB Growth NBM% 26.2% 44 -0.8% 2.0% 1. Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple etc VNB - Value of New Business; NBM - New Business Margin Actuarial Financial ESG HDFC Life#45Sensitivity analysis - FY22 Analysis based on key metrics Scenario Change in Reference rate Equity Market movement Change in VNB Margin 1 % Change in EV Increase by 1% -1.4% -2.0% Decrease by 1% 0.8% 1.6% Decrease by 10% -0.1% -1.4% Increase by 10% -0.6% -0.6% Persistency (Lapse rates) Decrease by 10% 0.7% 0.6% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.4% ΝΑ Decrease by 10% 3.4% ΝΑ Increase by 5% -1.2% -1.0% Mortality/Morbidity Tax rate² Decrease by 5% 1.2% 1.0% Increased to 25% -4.8% -9.1% Actuarial Financial ESG 45 1. Post overrun total VNB for Individual and Group business 2. The tax rate is assumed to increase from 14.56% to 25% and hence all the currently taxed profits in policyholder/shareholder segments are taxed at a higher rate. It does not allow for the benefit of policyholder surplus being tax-exempt as was envisaged in the DTC Bill. HDFC Life#46Capital position NB premium growth 15% 17% 20% 27% 201% 184% 178% 176% 101.5 97.7 94.3 16.2 14.3 24.0 70.8 28.4 27.8 13.1 23.4 19.2 38.5 55.6 56.9 46.9 Mar 31, 2022 Jun 30, 2022 Incremental RSM @150% Surplus Capital Solvency margin Mar 31, 2020 Mar 31, 2021 ASM1 RSM @100% Successfully raised Rs 3.5 billion of sub-debt in Q1 FY23 ■ Paid final dividend of Rs 1.70 per equity share 46 46 1. ASM represents Available solvency margin and RSM represents Required solvency margin Rs bn Actuarial Financial ESG HDFC Life#47Assets under management Debt: Equity 71:29 64:36 63:37 65:35 UL:Traditional 43:57 43:57 39:61 37:63 47 2 1% 37% 17% 10% 2,042 Change in AUM 1 CY (Q1 FY23) 35 3 -78 -40 Rs bn --> 2,001 Mar 31, 2022 Net Fund Inflow Net Investment Income Market Movements Jun 30, 2022 2,042 2,001 1,738 1,272 Mar 31, 2020 Mar 31, 2021 Mar 31, 2022 30th Jun 2022 YoY Growth 1,738- PY (Q1 FY22) 36 39 -1 74 1,813 Mar 31, 2021 Net Fund Inflow Net Investment Income Market Movements Jun 30, 2021 Around 99% of debt investments in Government bonds and AAA rated securities as on June 30, 2022 1. Calculated as difference from April to June Actuarial Financial ESG HDFC Life#48Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#4949 49 2020 69.3 2040 Hong Kong Taiwan Singapore 14.0% 7.6% Japan 5.8% Malaysia 4.0% 3.4% 3.2% 2.4% 8,983 Growth opportunity: Under-penetration and favorable demographics 19.2% 1 Life Insurance penetration ¹ (FY 2021) Life Insurance density US$ 2 (FY 2021) Life expectancy (Years) Thailand India China Hong Kong Singapore Taiwan 4,528 3,861 2,329 415 244 241 59 50 Japan Malaysia 1.4 1.6 1.7 76.1 7% 11% 17% 73.1 2060 Population composition (bn) 58% 61% 60% 1. Penetration as measured by premiums as % of GDP, 2. Density defined as the ratio of premium underwritten in a given year to the total population Source: Swiss Re (Based on respective financial year of the countries), MOSPI, United Nations World Populations Prospects Report (2017) 35% 28% 23% 2020 2040 2060 Less than 20 years 20-64 years ■65 years and above Thailand China India India remains vastly under-insured, both in terms of penetration and density Huge opportunity to penetrate the underserviced segments, with evolution of the life insurance distribution model India's insurable population estimated to be at 1 bn by 2035 Emergence of nuclear families and advancement in healthcare facilities lead to increase in life expectancy thus facilitating need for pension and protection based products HDFC Life#5050 50 Low levels of penetration 1.7 mn 172 mn 68 mn - Life protection 83.0% Protection gap 2 (2019) 76.0% 74.0% 71.0% 70.0% Urban Working Population Addressable Market Annual Policy Sales (excl blue collared) Only 1 out of 40 people (2.5%) who can afford it, is buying a policy every year¹ 24 17 Even within the current set, Sum Assured as a multiple of Income is <1x 12 1. Goldman Sachs Report, March 2019 2. Swiss Re (Based on respective financial year of the countries) 3. Kotak institutional equities India Indonesia Malaysia Thailand China Japan Singapore 61.0% 55.0% 55.0% 54.0% 41.0% South Korea Trend of retail loans 3 (Rs Tn.) 34 FY12 FY14 FY16 FY18 FY20 FY22 53 44 Australia Hong Kong ■ India has the highest protection gap in the region, as growth in savings and life insurance coverage has lagged behind economic and wage growth ■ Protection gap growth rate is predicted to grow at 4% per annum Retail credit has grown at a CAGR of 16% over last 10 years Increasing retail indebtedness to spur need for credit life products Immense opportunity given: Increasing adoption of credit Enhancement of attachment rates Improvement in value penetration Widening lines of businesses HDFC Life#51Macro opportunity - Retiral solutions India's pension market is under-penetrated at 9.3% of GDP 21.2 9.3 54.3 50.6 96.8 131.7 India Japan South Africa Hong Kong USA Australia Elderly population is expected to almost triple by 2060 Ageing population 7% 11% 17% 67% 68% 66% 26% 21% 17% 2020 2040 2060 Age <15 Yrs Age 15-64 Yrs Age >64 Yrs Improvements in life expectancy will lead to an average post retirement period of 20 years Life expectancy at age 60 19 18 18 17 17 16 15 20 20 1995-2000 2005-10 2015-20 2030-35E Males Females Average household size has decreased from 4.6 in 2001 to 3.9 in 2018 ■ Total Pension AUM is expected to grow to Rs 118 Tn by 2030 (about 1/4th accounted by NPS) Mandatory schemes to increase coverage for both unorganized and organized sectors HDFC 51 Source: Milliman Asia Retirement Report 2017; Survey by NSSO, Ministry of statistics and Programme implementation Crisil PFRDA, Census of India, UN Population Estimates Life#52Government bond auctions Government Bonds - Tenorwise Issuance 52 52 62% 71% 73% 65% 65% 72% 72% 79% !!!!!!!! 38% 35% 35% 29% 27% 28% 28% 21% FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1 FY23 <=15yrs 3,66,500 3,73,525 4,97,579 3,82,941 4,44,000 10,01,83 8,48,000 2,82,000 I>15yrs 2,25,000 1,54,520 1,80,529 2,04,000 2,38,000 2,65,575 3,31,000 1,08,000 Total 5,91,500 5,28,045 6,78,109 5,86,941 6,82,000 12,67,41 11,79,00 3,90,000 Auction of >15 year maturity bonds has been ~25-30% on an average facilitates writing annuity business at scale Source: CCIL & National Statistics Office, Union Budget, RBI Rs cr HDFC Life#53Life Insurance: A preferred savings instrument Household savings composition Financial savings mix 22% 18% 20% 22% 3% 8% 12% 15% 14% 19% 18% 19% 16% 47% 17% 17% 68% 65% 60% 17% 32% FY13 40% 35% 67% 56% 50% 53% 53% FY16 FY19 FY 21 ■Financial savings ■Physical savings Household savings as % of GDP FY13 FY16 ■Currency & deposits Life insurance Increasing preference towards financial savings with increasing financial literacy within the population Various government initiatives to promote financial inclusion: Implementation of JAM trinity Launch of affordable PMJJBY and PMSBY social insurance schemes Atal Pension Yojana promoting pension in unorganized sector Source: DBIE-RBI Statistics, RBI Annual Report, Economic Survey, CSO, www.pmjdy.gov.in 53 FY19 FY21 ■Provident/Pension fund ■ Others HDFC Life#54Industry new business¹ trends Individual WRP in Rs bn Sensex Private Players ■LIC 551 452 420 401 357 325 315 304 288 292 285 287 291 305 262 273 278 245 230 200208 227214 175 178 172 107 67 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1 23 Private players Market share 52% 46% 37% 38% 38% 49% 52% 54% 56% 58% 57% 60% 63% 61% Growth % Private 7% -20% -24% 2% -3% 16% 14% 26% 24% 12% 5% 8% 22% 47% 29% 4% 11% -4% -2% -27% 3% 15% 13% 5% 8% -3% 7% 35% LIC 17% -9% -5% -2% -3% -11% 8% 21% 19% 9% 6% 3% 16% 42% Overall Private sector remained at higher market share than LIC FY16 onwards Amongst private insurers, insurers with a strong bancassurance platform continue to gain market share 1.Based on Individual Weighted Received Premium (WRP) 54 Source: IRDAI and Life Insurance Council 54 Sensex HDFC Life#55Private industry: Product and distribution mix 55 43% 1 Product mix ¹ Unit Linked ■Conventional Distribution mix 2 ■Individual Agents Corporate Agents - Banks Corporate Agents - Others Brokers Direct Business 57% 54% 52% 51% 51% 48% 49% 49% 61% 9% 10% 10% 12% 14% 16% 16% 15% 56% 3% 10% 20% 3% 3% 3% 20 3% 3% 3% 3% 3% 3% 3% 46% 44% 39% 47% 52% 54% 54% 55% 53% 55% 55% 36% 32% 30% 28% 25% 25% 23% 23% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY 22 ■ Product mix has recently moved towards conventional business for the private players with high focus on non-par savings, protection ■ Banca sourced business continues to dominate the channel mix on the back of increasing reach of banks along with increase in share of direct channel 1. Based on Overall WRP (Individual and Group); 2. Based on Individual New business premia for all private players Source: IRDAI and Life Insurance Council HDFC Life#56Appendix HDFC Life#5757 40 Financial and operational snapshot (1/2) Q1 FY23 Q1 FY22 Growth FY22 FY21 FY20 CAGR Rs bn. New Business Premium (Indl. + Group) Renewal Premium (Indl. +Group) Total Premium Individual APE Overall APE 47.8 37.7 27% 241.5 201.1 172.4 18% 46.2 38.9 19% 218.1 184.8 154.7 19% 94.0 76.6 23% 459.6 385.8 327.1 19% 15.5 13.1 18% 81.7 71.2 61.4 15% 19.0 15.6 22% 97.6 83.7 74.1 15% Group Premium (NB) 25.2 19.0 33% 125.1 100.3 87.8 19% Profit after Tax 3.7 3.0 21% 12.1 13.6 13.0 -4% -Policyholder Surplus 2.6 0.4 489% 4.4 7.3 10.9 -36% - Shareholder Surplus 1.0 2.6 -60% 7.7 6.3 2.1 91% Dividend Paid 3.6 ΝΑ 4.1 NA Assets Under Management 2,001.2 1,812.7 10% 2,041.7 1,738.4 1,272.3 27% Indian Embedded Value 297.1 273.3 9% 300.5 266.2 206.5 21% Net Worth (1) 154.3 87.8 76% 154.0 84.3 69.9 48% NB (Individual and Group segment) lives insured (Mn.) 12.2 7.4 64% 54.1 39.8 61.3 -6% No. of Individual Policies (NB) sold (In 000s) 166.3 170.5 -2% 915.3 982.0 896.3 1% 1. Comprises share capital, share premium and accumulated profits/(losses) ◉ HDFC Life#58Financial and operational snapshot (2/2) Q1 FY23 Q1 FY22 FY22 FY21 FY20 Operating Return on EV Overall New Business Margins (post overrun) Operating Expenses / Total Premium 26.8% 26.2% 27.4% 26.1% 25.9% 16.5% 14.4% 16.6% 18.5% 18.1% 14.9% 12.5% 12.3% 12.0% 13.1% Total Expenses (OpEx + Commission) / Total Premium 18.8% 16.4% 16.5% 16.4% 17.7% Return on Equity (1) 9.5% 14.1% 10.1% 17.6% 20.5% Solvency Ratio 178% 203% 176% 201% 184% Persistency (13M / 61M) (2) 93%/58% 90%/53% 92%/58% 90%/53% 88%/54% Market Share (%) - Individual WRP - Group New Business - Total New Business Business Mix (%) 14.6% 17.8% 14.8% 15.5% 14.2% 22.2% 25.9% 27.9% 27.6% 29.0% 19.0% 22.3% 21.0% 21.5% 21.5% - Product (UL/Non par savings/Annuity/Non par protection/Par) (3) - Indl Distribution (CA/Agency/Broker/Direct) (3) - Total Distribution (CA/Agency/Broker/Direct/Group) (4) - Share of protection business (Based on Indl APE) - Share of protection business (Based on Overall APE) Share of protection business (Based on NBP) 25/35/6/5/30 56/16/7/22 21/6/2/18/53 4.6% 16.9% 27/32/5/8/29 26/33/5/6/30 24/31/5/7/34 28/41/4/8/19 56/15/6/23 60/14/6/19 61/13/7/19 55/14/9/22 22/7/3/18/50 24/6/2/16/52 25/6/2/17/50 23/7/3/17/51 8.3% 5.6% 6.8% 7.6% 15.7% 13.6% 12.8% 17.2% 32.3% 22.4% 24.0% 19.6% 27.6% 2. 1. Calculated using net profit and average net worth for the period (Net worth comprises of Share capital, Share premium and Accumulated profits) Individual persistency ratios including single premium (based on original premium) 3. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating & CA: Corporate Agents. Percentages are rounded off 4. Based on total new business premium including group. Percentages are rounded off 58 HDFC Life#59Revenue and Profit & Loss A/c Revenue A/c¹ Q1 FY23 Q1 FY22 Profit and Loss A/c¹ Rs bn Q1 FY23 Q1 FY22 i Premium earned I 94.0 76.6 Income I Reinsurance ceded (1.2) (1.2) I Interest and dividend income 1.2 1.2 Income from Investments (34.9) 69.6 I I I Net profit/(loss) on sale (0.2) 1.3 i Other Income 0.4 0.2 I | Transfer from Shareholders' Account 0.8! Transfer from Policyholders' Account 2.6 1.2 I Total Income 58.3 146.0 Other Income Commissions 3.7 3.0 Total 3.6 3.8 I | Expenses 14.0 9.5 Outgoings I I GST on UL charges 0.9 0.9 I Transfer to Policyholders' Account 0.8 I | ■ Provision for taxation 0.2 (0.0) ! Expenses 0.1 0.0! I I i Provision for diminution in value of investments 0.2 (2.0) I | I ! Interest on convertible debentures 0.1 0.1! I Benefits paid 65.5 55.5 I I Provision for diminution in value of investments (0.2) (0.2)¦ Change in valuation reserve I Bonuses Paid (31.8) 3.2 76.1¦ I 2.6 Provision for Taxation 0.0 0.0¦ Total Outgoings 55.8 145.4 Total (0.0) 0.8 Surplus Transfer to Shareholders' Account Funds for future appropriation - Par Total Appropriations 2.5 0.6 Profit for the year as per P&L Statement 3.7 3.0 2.6 1.3 (0.1) (0.7) 2.5 0.6 1. Numbers may not add up due to rounding off effect HDFC Life 59#60Balance sheet Shareholders' funds Jun 30, 2022 Jun 30, 2021 March 31, 2022 Rs bn I Share capital (including Share premium) I Accumulated profits Fair value change I Sub total Borrowings Policyholders' funds Fair value change Policy Liabilities 86.9 25.4 67.3 62.3 86.7 67.3 I (0.3) 1.8 0.8 154.0 89.5 154.8 9.5 6.0 I 6.0 8.9 23.4 21.7 1,081.3 897.2 Provision for Linked Liabilities 694.5 740.2 1,043.4 765.2 I Funds for discontinued policies 41.9 41.5 41.0 I Sub total 1,826.7 1,702.3 1,871.3 Funds for future appropriation (Par) 9.3 9.2 9.4 Total Source of funds 1,999.5 1,807.1 2,041.6 Shareholders' investment 157.1 89.7 152.4 Policyholders' investments: Non-linked 1,107.6 941.3 1,083.1 I Policyholders' investments: Linked 736.5 781.8 806.2 I Loans 7.0 4.8 6.4 I I Fixed assets 3.5 3.4 3.4 I Net current assets (12.3) (13.8) (10.0) Total Application of funds 1,999.5 1,807.1 2,041.6 60 Note: Numbers may not add up due to rounding off effect 60 HDFC Life#6110 61 Segment wise average term and age¹ Average Policy Term excluding annuity (Yrs) Q1 FY23: 22 (Q1 FY22: 24) Average Customer Age excluding annuity (Yrs) Q1 FY23: 36 (Q1 FY22: 36) 12 UL 13 223 39 Par 41 25 Non-par Health 26 12 Non-par Savings 12 22 33 Non-par Protection 39 Non-par Pension 14 12 Q1 FY23 Q1 FY22 37 UL 36 33 Par 33 34 Non-par Health 33 38 Non-par Savings 37 34 Non-par Protection 34 56 Non-par Pension 54 Q1 FY23 Q1 FY22 Focus on long term insurance solutions, reflected in terms of long policy tenure Extensive product solutions catering customer needs across life cycles from young age to relatively older population 1. Basis individual new business policies (excluding annuity) HDFC Life#62Summary of Milliman report on our ALM approach - FY20 Scope of review Assess appropriateness of ALM strategy to manage interest rate risk in non-par savings business Review sensitivity of value of assets and liabilities to changes in assumptions Portfolios reviewed - ■ Portfolio 1: Savings and Protection All non-single premium non-par savings contracts and group protection products ■ Portfolio 2: All immediate and deferred annuities Description Interest rate scenarios Interest rate + Demographic scenarios 100% persistency and low interest rates Stress scenarios tested Parallel shifts/ shape changes in yield curve within +- 150 bps of March 31st 2020 Gsec yield curve Interest rate variation + changes in future persistency/ mortality experience Net asset liability position Changes by < 4.5% Changes by < 7% 100% persistency with interest rates falling to 4% p.a. for next 5 years, 2% p.a for years 6 -10 and 0% thereafter Still remains positive 62 62 Life Opinion and conclusion ALM strategy adopted for Portfolios 1 and 2 is appropriate to: ■ meet policyholder liability cash flows protect net asset-liability position thereby limiting impact on shareholder value HDFC 1. Opinion issued by Milliman Advisors LLP on ALM strategy (for non par business) based on FY20 disclosures#63Indian Embedded value: Methodology and Approach (1/2) Overview Indian Embedded Value (IEV) consists of: ☐ ☐ Adjusted Net Worth (ANW), consisting of: - - Free surplus (FS); - Required capital (RC); and Value of in-force covered business (VIF): Present value of the shareholders' interest in the earnings distributable from assets allocated to the covered business, after making sufficient allowance for the aggregate risks in the covered business. Components of Adjusted Net Worth (ANW) ☐ Free surplus (FS): FS is the Market value of any assets allocated to, but not required to support, the in-force covered business as at the valuation date. The FS has been determined as the adjusted net worth of the Company (being the net shareholders' funds adjusted to revalue assets to Market value), less the RC as defined below. Required capital (RC): RC is the amount of assets attributed to the covered business over and above that required to back liabilities for the covered business. The distribution of this to shareholders is restricted. RC is set equal to the internal target level of capital equal to 170% of the factor-based regulatory solvency requirements, less the funds for future appropriations ("FFA") in the participating funds. 63 HDFC Life#64Indian Embedded value: Methodology and Approach (2/2) Components of Value in-force covered business (VIF) ■ Present value of future profits (PVFP): PVFP is the present value of projected distributable profits to shareholders arising from the in-force covered business determined by projecting the shareholder cash flows from the in-force covered business and the assets backing the associated liabilities. Time Value of Financial Options and Guarantees (TVFOG): TVFOG reflects the value of the additional cost to shareholders that may arise from the embedded financial options and guarantees attaching to the covered business in the event of future adverse market movements. Intrinsic value of such options and guarantees is reflected in PVFP. Frictional costs of required capital (FC): FC represents the investment management expenses and taxation costs associated with holding the RC. VIF includes an allowance for FC of holding RC for the covered business. VIF also includes an allowance for FC in respect of the encumbered capital in the Company's holdings in its subsidiaries. Cost of residual non-hedgeable risks (CRNHR): CRNHR is an allowance for risks to shareholder value to the extent that these are not already allowed for in the TVFOG or the PVFP. In particular, the CRNHR makes allowance for: - asymmetries in the impact of the risks on shareholder value; and - risks that are not allowed for in the TVFOG or the PVFP. CRNHR has been determined using a cost of capital approach. CRNHR is the present value of the cost of capital charge levied on the projected capital in respect of the material risks identified. 64 HDFC Life#65Embedded Value: Economic assumptions¹ Years Forward rates % Spot rates % As at Jun 30, 2021 As at Jun 30, 2022 As at Jun 30, 2021 As at Jun 30, 2022 1 3.87 5.96 3.80 5.79 2 5.40 7.38 4.53 6.46 3 6.39 7.85 5.08 6.82 4 7.01 7.98 5.51 7.04 5 7.43 8.01 5.84 7.17 10 10 7.99 8.02 6.72 7.44 15 7.72 8.06 7.00 7.54 20 7.43 8.10 7.07 7.60 25 7.25 8.12 7.07 7.64 30 7.15 8.14 7.04 7.67 65 1. Forward rates are annualised and Spot rates are continuous HDFC Life#66Glossary (Part 1) APE (Annualized Premium Equivalent) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups ◉ Backbook surplus - Surplus accumulated from historical business written ■ Conservation ratio - Ratio of current year renewal premiums to previous year's renewal premium and first year premium ■ Embedded Value Operating Profit ("EVOP") - Measure of the increase in the EV during any given period, excluding the impact on EV due to external factors like changes in economic variables and shareholder-related actions like capital injection or dividend pay-outs. First year premiums - Regular premiums received during the year for all modes of payments chosen by the customer which are still in the first year. For example, for a monthly mode policy sold in March 2021, the first instalment would fall into first year premiums for 2020-21 and the remaining 11 instalments in the first year would be first year premiums in 2021-22 ◉ New business received premium - The sum of first year premium and single premium. ◉ New business strain - Strain on the business created due to revenues received in the first policy year. not being able to cover for expenses incurred HDFC 66 Life#67◉ ◉ ■ ◉ ◉ Glossary (Part 2) Operating expense - It includes all expenses that are incurred for the purposes of sourcing new business and expenses incurred for policy servicing (which are known as maintenance costs) including shareholders' expenses. It does not include commission. Operating expense ratio - Ratio of operating expense (including shareholders' expenses) to total premium Proprietary channels - Proprietary channels include agency and direct Protection Share - Share of protection includes annuity and health Persistency - The proportion of business retained from the business underwritten. The ratio is measured in terms of number of policies and premiums underwritten. Renewal premiums - Regular recurring premiums received after the first year Solvency ratio - Ratio of available solvency Margin to required solvency Margins Total premiums - Total received premiums during the year including first year, single and renewal premiums for individual and group business Weighted received premium (WRP) - The sum of first year premium and 10% weighted single premiums and single premium top-ups HDFC 67 40 Life#68Disclaimer This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities ("Securities") of HDFC Life Insurance Company Limited ("HDFC Life" or the "Company") in India, the United States, Canada, the People's Republic of China, Japan or any other jurisdiction. This presentation is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). The securities of the Company may not be offered or sold in the United States in the absence of registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any securities in the United States. You confirm that you are either: (i) a "qualified institutional buyer" as defined in Rule 144A under the U.S. Securities Act of 1933, as amended, or (ii) outside the United States. By receiving this presentation, you are agreeing to be bound by the foregoing and below restrictions. Any failure to comply with these restrictions will constitute a violation of applicable securities laws. This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any contract or commitment whatsoever. The information contained in this presentation is strictly confidential and is intended solely for your reference and shall not be reproduced (in whole or in part), retransmitted, summarized or distributed to any other persons without Company's prior written consent. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify you or any person of such revision or changes. This presentation may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on certain assumptions and expectations of future events. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that your expectations will be met. Representative examples of factors that could affect the accuracy of forward-looking statements include (without limitation) the condition of and changes in India's political and economic status, government policies, applicable laws, the insurance sector in India, international and domestic events having a bearing on Company's business, particularly in regard to the regulatory changes that are applicable to the life insurance sector in India, and such other factors beyond our control. You are cautioned not to place undue reliance on these forward-looking statements, which are based on knowledge, experience and current view of Company's management based on relevant facts and circumstances. The data herein with respect to HDFC Life is based on a number of assumptions, and is subject to a number of known and unknown risks, which may cause HDFC Life's actual results or performance to differ materially from any projected future results or performance expressed or implied by such statements. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Company's control. Past performance is not a reliable indication of future performance. This presentation has been prepared by the Company. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice. 68 HDFC Life#69Thank You 21 YEARS Protecting India with Pride ◉ HDFC Life