#1Muthoot Finance INDIA'S #1 MOST TRUSTED FINANCIAL SERVICES BRAND 2023# Great Place To WorkⓇ Certified DEC 2022 - DEC 2023 INDIA TM Financial Results Q2 FY 2024 September 2023 Muthoot Family - 800 years of Business Legacy#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 Microfinance Muthoot Money Limited Asia Asset Finance PLC Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Vehicle Finance Listed Diversified NBFC in Sri Lanka Insurance Broking Muthoot Trustee Private Limited 59.02 100.00 72.92 100.00 100.00 100.00 2#4(3 40 الالم PERFORMANCE HIGHLIGHTS HALF YEAR ENDED SEPT 30, 2023 Increase in Consolidated Loan Portfolio: 24% YoY at 79,493 Crores Highest ever Gross Gold Loan Advance in any 1st Half of a Year: 84,742 Crores Highest ever Gold Loan Advance to new customers in any 1st Half of a Year: 8,109 Crores Highest ever Gold Loan Portfolio Growth in 1st Half of a Year: 5,642 Crores Increase in Gold Loan Portfolio: 20% YoY at 11,016 Crores Increase in Consolidated Profit after Tax: 24% YoY at 2,140 Crores Increase in Standalone Profit After Tax: 18% YoY at ₹1,966 Crores All time high Interest Collection in any Half Year: 5,447 Crores Pa Muthoot Finance 3#5CONSOLIDATED LOAN PORTFOLIO pa AS ON SEPT 30, 2022 pa AS ON SEPT 30, 2023 79,493 Crores 64,356 Crores INCREASE IN CONSOLIDATED LOAN PORTFOLIO 24% YoY AT 79,493 CRORES 4#6GROSS GOLD LOAN ADVANCE Pe AS ON SEPT 30, 84,742 Crores 2023 H✓ HIGHEST EVER GROSS GOLD LOAN ADVANCE IN ANY 1ST HALF OF A YEAR 84,742 CRORES 5#7NEW CUSTOMER ACQUISITION (NEW KYC) pa AS ON SEPT 30, 2023 8,109 Crores HIGHEST EVER GOLD LOAN ADVANCE TO NEW CUSTOMERS IN ANY 1ST HALF OF A YEAR 8,109 CRORES 6#8GOLD LOAN PORTFOLIO Da pa AS ON SEPT 30, 2022 56,501 Crores AS ON SEPT 30, 2023 67,517 Crores INCREASE IN GOLD LOAN PORTFOLIO 20% YoY AT 11,016 CRORES 7#9HALF YEAR GOLD LOAN PORTFOLIO GROWTH pa P AS ON SEPT 30, 2023 67,517 Crores pa AS ON MAR 31, 61,875 Crores 2023 HIGHEST EVER GOLD LOAN GROWTH IN ANY 1ST HALF OF A YEAR 5,642 CRORES 8#10CONSOLIDATED PROFIT AFTER TAX pa HALF YEAR ENDED SEPT 30, 2023 2,140 Crores HALF YEAR 15 ENDED SEPT 30, 2022 1,727 Crores INCREASE IN CONSOLIDATED PROFIT AFTER TAX 24% YoY AT 2,140 CRORES 9#11STANDALONE PROFIT AFTER TAX Pe HALF YEAR ENDED SEPT 30, 2023 P HALF YEAR ENDED SEPT 30, 2022 1,669 Crores 1,966 Crores INCREASE IN STANDALONE PROFIT AFTER TAX 18% YoY AT 1,966 CRORES 10#12INTEREST COLLECTION P HALF YEAR ENDED SEPT 30, 2023 5,447 Crores ALL TIME HIGH INTEREST COLLECTION IN ANY HALF YEAR 5,447 CRORES 11#13THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 YoY (%) FY 2023 6,169 5,750 6,169 5,897 7 5,838 Consolidated Loan Assets Under Management* of the Group (in million) 794,934 643,556 794,934 767,987 24 714,968 Consolidated Profit after tax of the Group (in million) 21,400 17,266 10,953 10,447 24 36,698 Contribution in the Consolidated Loan Assets Under Management* of the Group Muthoot Finance (%) Subsidiaries (%) Contribution in the Consolidated Profit after tax of the Group Muthoot Finance (%) Subsidiaries (%) *Principal amount of Loan assets 87 89 87 88 800 88 13 11 13 12 12 91 97 90 93 94 9 3 10 7 6 12#14THE GROUP Loan Assets Under Management* of the Group Sep-23 Ⓡ Muthoot Finance (in millions) Jun-23 Mar-23 Sep-22 YoY (%) Muthoot Finance Limited 690,016 676,385 632,098 572,303 21 Muthoot Homefin (India) Limited 16,157 15,007 14,381 14,197 14 Belstar Microfinance Limited 78,741 70,082 61,925 51,381 53 Muthoot Money Limited 6,302 4,961 3,870 2,337 170 Asia Asset Finance PLC 5,018 5,352 5,294 4,338 16 Less: Intra-Group Loan Assets 1,300 3,800 2,600 1,000 50 30 Total 794,934 767,987 714,968 643,556 24 *Principal amount of Loan assets 13#15THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q2 FY 2023 Q1 FY 2024 FY 2023 19,661 16,692 9,910 8,672 9,751 34,735 Muthoot Homefin (India) Limited 91 39 44 25 47 104 Muthoot Insurance Brokers Private 254 158 152 87 102 464 Limited Belstar Microfinance Limited 1,348 351 831 213 517 1,303 Muthoot Money Limited (2.10) 2 (1.52) 2 (0.57) 2 Asia Asset Finance PLC 33 33 33 19 22 22 15 70 0 Muthoot Asset Management Private Limited 31 17 16 9 15 46 Muthoot Trustee Private Limited 0.27 0.09 0.14 0.06 0.13 0.27 14#16Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Sep-23 Ⓡ Muthoot Finance (in millions) Jun-23 Mar-23 Sep-22 Cash and cash equivalents 68,337 42,930 77,702 64,311 Bank Balance other than above 4,206 4,432 2,655 1,991 Derivative Financial Instruments 6 1,809 Trade Receivables 110 85 99 64 Loans 785,479 758,097 705,544 637,781 11,619 6,008 5,457 21,897 4,010 3,616 3,453 3,107 Investments Other Financial Assets Non-Financial Assets Current Tax Assets (Net) 317 388 475 101 Defered Tax Assets (Net) 757 701 641 1,186 Investment Property 84 87 82 74 Property, Plant and Equipment 3,384 3,323 3,272 2,898 Right to use Asset 128 147 142 139 Captial Work-In-Progress 833 758 674 897 Goodwill 300 300 300 300 Other Intangible Assets 57 61 59 55 Intangible assets under development 1 Other Non Financial Assets 1,218 999 934 894 Total Assets 880,845 821,932 801,489 737,504 15#17Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Sep-23 Jun-23 Mar-23 Sep-22 LIABILITIES Financial Liabilities Derivative Financial Instruments 16 1,749 1,922 1,452 Trade Payables 1,216 1,165 1,341 1,762 Other Payables 730 795 817 2 Debt Securities 145,045 135,621 146,046 120,444 Borrowings(other than Debt securities) 471,614 433,233 405,975 388,594 Deposits 3,484 3,775 3,315 2,253 Subordinated Liabilities 3,542 3,540 2,546 3,002 Lease Liability 141 161 155 152 Other Financial Liabilities 15,183 11,496 12,576 11,551 Non-Financial Liabilities Current Tax Liabilities(net) 1,541 2,343 812 2,270 Provisions 3,642 3,858 3,619 3,530 Deferred Tax Liabilities(net) 134 138 153 168 Other Non-Financial Liabilities 533 628 683 571 EQUITY Equity attributable to equity owners of the 228,825 218,318 216,658 197,321 company Non-Controlling Interest 5,199 5,112 4,871 4,433 Total Liabilities and Equity 880,845 821,932 801,489 737,504 16#18Ⓡ Consolidated Financial Results Particulars Muthoot Finance (in millions) H1 FY H1 FY YOY Q2 FY QoQ Q2 FY Q1 FY 2024 2024 2023 (%) 2024 (%) 2023 FY 2023 Income 115,55 Interest Income 68,837 54,880 25 35,053 33,784 4 27,579 5 Service Charges 830 588 41 481 348 38 314 1,371 Sale of Services 79 52 51 54 25 117 30 113 Other Income 628 330 90 258 370 (30) 170 773 Income other than above 1,033 612 69 473 560 (16) 326 1,937 119,75 Total Income 71,406 56,462 26 36,319 35,087 4 28,419 0 Expenses Finance Cost 25,710 20,714 24 13,350 12,359 8 10,205 42,092 Impairment of Financial Instruments 2,398 339 608 811 1,586 (49) 438 2,420 Net Loss on derecognition of financial (20) instruments Employee Benefit Expenses 8,489 6,870 24 4,216 4,273 (1) 3,422 14,883 Depreciation, Amortisation and 414 354 17 222 192 16 184 782 Impairment Other Expenses 5,627 4,998 13 3,018 2,609 16 2,122 10,346 Total Expenses 42,637 33,275 28 21,617 21,019 3 16,351 70,522 Profit before tax 28,770 23,187 24 14,702 14,068 5 12,068 49,228 Tax expense 7,370 5,921 24 3,749 3,621 4 3,052 12,530 Profit after Tax 21,400 17,266 24 10,953 10,447 5 9,016 36,698 Earnings per share -Basic (*) 51.85 42.63 22 26.39 25.46 4 22.22 89.99 Earnings per share -Diluted (*) 51.85 42.62 22 26.39 25.46 4 22.22 89.98 17#19Ⓡ 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 Corporate Loans Small Business Loans 18#20MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 183 tonnes Gold jewellery kept as security 4,700+ Pan-India branches 28,000+ Team members 690,016 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day (As of September 30, 2023) 19#21SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 23.27 3.38 73.35 Ⓡ Muthoot Finance (%) Shareholding as on September 30, 2023 Promoter & Promoter group FII, FC, MF & Others ■Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on September 30,2023) 502,766 million 20 20#22BOARD OF DIRECTORS - PROMOTER GROUP George Jacob Muthoot Chairman Muthoot Finance (1/2) George Thomas Muthoot George Alexander Muthoot Managing Director Whole time Director Alexander George Whole time Director George M George George M Jacob Wholetime Director Whole time Director George Alexander Whole time Director 21 221#23BOARD OF DIRECTORS - INDEPENDENT DIRECTORS Joseph Korah Independent Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director Usha Sunny Independent Director Abraham Chacko Independent Director C A Mohan Independent Director Ⓡ Muthoot Finance (2/2) V. A. George Independent Director 22 22#24Ⓡ Muthoot Finance (%) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 DIVIDEND PAYOUT Delivering consistent returns to stakeholders 220 200 200 150 120 100 60 60 20 20 29 29 Dividend payout (in millions) 8,832 8,027 8,024 7,249 5,796 4,813 2,885 2,877 Dividend (%)* Dividend Payout Ratio (%) 25 25 20 20 * On face value of 10 per equity share 21 21 19 24 24 22 22 23 23#25Pa Muthoot Finance GEOGRAPHICAL PRESENCE A strong presence of 4745 branches across India (%) Branches region wise State wise Branch Network 59 59 17 7 ■ East ■West 17 North ■South Jammu & Kashmir 17 Himachal Pradesh Punjab 13 191 Uttarakhand Chandigarh 10 Haryana 142 23 Delhi 227 Rajasthan 146 Uttar Pradesh 195 Assam 34 Bihar 25 Tripura 4 Gujarat 212 Madhya Pradesh 107 Jharkhand 17 West Bengal $163 Daman & Diu 01 phhattisgarh Odisha 79 (As of September 30, 2023) Rural India accounts for about 65% of total gold stock in the country 。 Large portion of the rural population has limited credit access 。 Catering to under-served rural and semi- urban markets through strong presence Maharashtra 278 Dadra & Nagar Haveli 01 Telangana 314 Goa 36 Karnataka 536 Andhra Pradesh 426 Pondicherry Tamil Nadu 7 Kerala 980 526 Andaman & Nicobar Islands 8 24 24#26DIGITAL INITIATIVES Digital convenience for new gen & Millennium Customer acquisition Muthoot • E-TRANSFER • Direct Credit Facility Loan proceeds credited to bank account NEFT/RTGS/IMPS/UPI mode of bank transfer Instant credit to customer bank account using UPI 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 • Less cash handling at branch Loan repayment option through Paytm Phone Pay Google Pay BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance UPI Powered by NPCI UPI AutoPay and eMandate for EMI collections • • 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 RPA enabled UPI VPA mapping using customers verified Mobile No.'s 25#27Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • Muthoot Finance 39.2 % of gold loan customers are transacted online. (including Paytm, PhonePe & Google Pay) Muthoot Online Muthoot Qnline Our online services has now been re-branded to Muthoot Online, from WebPay earlier. Customers can now make payment of interest and principal re-payments using Debit Card/Net Banking/UPI. 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. Refer & Earn Milli Gram Gold rewards for customers Buy NCD Online option ¡Muthoot App im Muthoot Mobile App Launched in Nov'16 has about 8.33m downloads and 5.5m registered Users. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs. 14,402 Crs payments from 4.94 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. Refer & Earn Milli Gram Gold rewards for customers Buy NCD Online option 26#28DIGITAL 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 Loan closure and Door-step delivery through LAH customer App. Ⓡ Muthoot Finance 27 27#29Standalone Statement of Assets and Liabilities Muthoot Finance (in millions) Sep-22 Particulars Sep-23 Jun-23 Mar-23 ASSETS Financial assets Cash and cash equivalents 61,415 34,871 64,288 57,874 Bank Balance other than above 2,290 2,296 324 223 Derivative Financial Instruments 6 1,809 Trade Receivables 28 33 16 34 Loans Investments 700,161 686,034 642,649 583,032 23,539 13,161 13,169 30,290 1,902 1,559 1,336 1,410 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 329 394 402 468 Property, Plant and Equipment 2,767 2,724 2,682 2,649 Captial Work-In-Progress 833 758 674 578 Other Intangible Assets 36 39 36 32 Other Non Financial Assets 771 610 623 595 Total Assets 794,077 742,479 726,198 678,994 28#30Standalone Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Sep-23 Jun-23 Mar-23 Sep-22 LIABILITIES Financial Liabilities Derivative Financial Instruments 16 1,734 1,892 1,501 Trade Payables 1,760 1,794 1,959 1,659 Debt Securities 134,945 127,288 137,384 114,833 Borrowings(other than Debt securities) 417,534 384,232 358,992 351,437 Subordinated Liabilities 738 737 967 1,425 Other Financial Liabilities 11,880 8,459 9,564 9,759 Non-Financial Liabilities Current Tax Liabilities(net) 1,533 2,312 789 2,270 Provisions 3,510 3,730 3,516 3,448 Other Non-Financial Liabilities 355 422 515 361 EQUITY Equity Share Capital Other Equity Total Liabilities 4,015 4,014 4,014 4,014 217,791 207,756 206,605 188,287 794,077 742,479 726,198 678,994 29#31REVENUE & PROFIT Standalone Financial Results Ⓡ Muthoot Finance (in millions) H1 FY 2024 H1 FY 2023 YOY Growth Q2 FY 2024 Q1 FY 2024 QoQ Growth Q2 FY 2023 FY 2023 (%) (%) INCOME Interest Income 59,724 49,562 21 30,147 29,577 2 24,746 103,686 Other than Interest Income 1,275 566 125 589 686 (14) 289 1,751 Total 60,999 50,128 22 30,736 30,263 2 25,035 105,437 EXPENSES Finance Cost 22,201 18,443 20 11,563 10,638 9,027 36,991 Employee benefit Expense 6,300 5,298 19 3,073 3,226 (5) 2,583 11,044 Administrative & Other 4,537 4,172 9 2,400 2,138 12 1,692 8,599 expenses Impairment on Financial 981 (704) (239) 120 860 (86) Instruments (127) 605 Directors Remuneration 246 223 10 123 123 112 950 Depreciation & Amortisation 288 264 9 154 133 16 135 583 Total 34,552 27,696 25 17,434 17,118 2 13,422 58,773 PROFIT Profit Before Tax 26,447 22,432 18 13,302 13,145 1 11,614 46,664 Profit After Tax 19,661 16,692 18 9,910 9,751 2 8,672 34,735 30#32EQUITY Strong Capital Base Networth Sep-23 Jun-23 Mar-23 Ⓡ Muthoot Finance (in millions) Sep-22 Equity Share Capital 4,015 4,014 4,014 4,014 Other Equity 217,791 207,756 206,605 188,287 Total 221,805 211,771 210,619 192,301 31#33ASSETS Core focus continues to be gold loan Gross Loan Assets under management* Gross loan assets under management В Ⓡ Muthoot Finance Sep-23 Jun-23 Mar-23 Sep-22 Growth Growth (in million) (in million) (in million) (in million) YoY (%) QoQ (%) 690,016 676,385 632,098 572,303 21 2 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 675,171 660,388 618,753 565,014 19 2 14,845 15,997 13,345 7,289 104 (7) 32 32#34LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Sep-23 Jun-23 Mar-23 Sep-22 Growth Growth (in million) (in million) (in million) (in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures 213 357 845 1,753 (Muthoot Gold Bonds) (88) (40) Secured Non-Convertible Debentures- Listed 134,847 127,067 136,694 113,285 19 6 Borrowings from Banks/Fls 361,740 306,275 296,243 261,737 38 18 External Commercial Borrowings- Senior 26,664 45,194 81,345 (100) secured Notes (100) Subordinated Debt -Listed 741 741 971 1,431 (48) Commercial Paper 46,176 39,246 11,536 18 Other Loans 9,769 12,161 6,150 8,544 14 (20) Total 553,486 512,511 497,633 468,095 18 8 *Principal amount of Borrowings 33#35GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* 720 680 640 600 560 520 480 440 408 400 360 336 320 288 280 260 272 216 233 243 240 200 160 120 80 40 0 Ⓡ Muthoot Finance (in billions) 675 660 619 575 565 519 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 *Principal amount of gold Loan assets 34#36GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security 200 Ⓡ Muthoot Finance (In tonnes) 187 180 182 183 180 176 171 177 169 160 155 142 149 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 35 55#37Ⓡ GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO Muthoot Finance Diversified gold loan portfolio across India (%) 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 East 5 6 6 7 7 8 8 9 9 9 9 10 10 10 West 11 13 15 17 18 19 20 19 19 19 20 19 19 19 ■North 19 22 22 22 23 23 23 23 22 22 23 23 23 24 ■South 65 59 57 54 52 50 50 49 49 50 50 48 48 48 47 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 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 260 216 6 233 24 243 272 288 336 408 ;། 5 *Principal amount of Gold Loan Assets 519 575 562 619 660 675 36#38Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 155 135 115 95 89.28 74.97 75 66.70 63.69 63.20 50.63 55.01 56.93 55 35 15 (in millions) 142.29 139.26 130.57 124.61 121.74 112.10 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 *Principal amount of Gold Loan Assets 37#39HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections Pa Muthoot Finance (in billions) 4341 4342 4845 81 75 68 69 61 5554 58 91 82 88 98 87 85 69 77 70 5252 10406 179 173 165 156 12732 112 100 103101 104 99 88 87 FY15 FY16 FY17 FY18 FY19 FY20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 Q4 Q1 Q2 FY23 FY24 FY24 ■ Avg Monthly Disbursement Strong level of disbursements and collections ■Avg Monthly Collection 38#40HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 62% 67% 80% 60% 40% 20% 0% FY15 FY16 FY17 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 ■ 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 39 39#41Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Sep-23 Jun-23 Mar-23 Sep-22 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Gold Loan assets (in Billions) 675 660 619 565 575 519 407 336 288 272 243 Quantity of Gold content in Ornaments held as Security (Tonnes) 183 182 180 177 187 171 176 169 155 149 142 Gold Price/gm (*) 5,287 5,318 5,473 4,608 4,716 4,048 3,955 2,910 2,824 2,725 2,670 Lender's Perspective Market Price of Gold Content in Ornaments (in Billions) 967 967 985 816 882 692 696 492 438 406 379 Margin of safety on loans Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards making charges etc Equity of Borrower in the Gold Ornaments net of loans availed 30% 32% 37% 31% 35% 25% 42% 32% 34% 33% 36% 1,160 1,160 1,182 979 1,058 830 835 590 526 487 455 42% 43% 48% 42% 46% * Above calculations are made on overall portfolio and excludes interest accrued on loans 37% 51% 43% 45% 44% 47% 40#42CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Sep-23 Jun-23 Mar-23 Sep-22 Mar-22 Mar-21 Mar-20 Mar-19 Gold Loan AUM (in Millions) QoQ % change in Gold Loan AUM 675,171 660,388 618,753 565,014 575,313 519,266 407,724 335,853 2 7 9 1 6 5 8 No. of Loan Accounts 84,94,596 83,35,866 81,46,997 81,59,960 83,69,535 84,10,139 80,22,325 80,62,139 QoQ % change in no.of loan accounts 2 2 1 1 (2) 5 No.of Active customers QoQ % change in no.of customers 55,02,779 54,12,660 53,23,362 52,16,519 53,16,246 51,90,220 49,33,886 47,21,243 2 2 2 1 3 1 41#43Ⓡ CUSTOMER 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 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) Muthoot Finance Sep-23 Jun-23 Mar-23 Sep-22 Mar-22 Mar-21 Mar-20 Mar-19 428,114 412,206 401,638 402,622 427,472 432,320 352,036 380,171 8 8 7 8 8 8 8 8 35,511 35,383 35,814 29,020 40,233 29,170 21,806 20,023 360,620 355,760 333,907 322,521 372,764 361,090 346,626 360,251 7 7 7 6 6 7 7 8 34,969 36,699 34,506 26,029 42,954 27,528 25,622 23,148 14 739,138 744,800 660,475 683,573 763,317 756,618 702,566 779,363 13 14 12 13 14 15 17 60,972 66,668 56,499 49,057 69,973 48,859 42,368 42,751 42#44YIELD ON LOAN ASSETS AND NIM Yearly (%) Quarterly Ⓡ 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 20.00 20.00 20.27 19.72 17.70 19.31 18.08 18.00 17.65 17.93 18.00 17.38 17.29 15.53 16.00 14.00 15.29 12.74 14.20 16.00 14.24 13.03 14.00 11.38 12.00 10.84 12.00 11.58 9.79 10.47 11.38 10.88 11.04 11.27 10.86 10.00 10.27 10.00 9.42 9.52 8.69 9.25 8.00 7.03 7.51 7.93 6.92 7.02 8.00 6.31 6.77 6.34 6.50 6.67 6.43 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Mar-18 Mar-19 Mar-20 Mar-21 Mar-22Mar-23* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* 43#45INTEREST SPREAD Yearly (%) Quarterly В Ⓡ Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 21.66 22.21 22.17 21.43 22.00 21.23 22.00 20.27 19.31 19.72 20.06 20.00 20.00 17.70 17.65 18.08 17.93 18.00 18.00 17.38 17.29 16.00 16.00 14.04 13.45 13.49 14.00 14.00 12.42 11.88 11.99 12.00 12.00 10.93 10.80 10.90 12.23 9.24 10.53 9.69 10.00 9.00 8.99 10.00 8.76 9.19 9.40 9.52 9.35 9.67 8.39 8.38 8.68 8.92 8.07 8.46 8.41 8.41 8.01 7.98 7.94 8.00 8.00 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18*Mar-19*Mar-20*Mar-21*Mar-22*Mar-23* *Under IND-AS Q2 FY Q2 FY Q1 FY H1 FY 2024* 2023* 2024* 2024* H1 FY 2023* Interest Income on Average Loan Assets Interest Expenses on Average Borrowings Interest Spread 44 44#46RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 8.00 7.00 Ⓡ Muthoot Finance (%) Quarterly (%) 10.00 9.00 8.11 7.99 7.24 8.00 6.36 6.19 6.00 5.00 4.05 4.47 4.00 3.22 7.00 5.93 6.09 5.80 6.00 5.96 5.90 5.82 5.00 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*Mar-23* Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* *Under IND-AS 45 55#47IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Sep-23 Jun-23 Mar-23 Sep-22 Stage I Loan Assets 655,302 633,637 599,834 554,108 Stage II Loan Assets 7,075 13,958 8,278 8,637 Stage III Loan Assets 27,639 28,789 23,986 9,558 % Stage III Assets on Gross Loan Assets 4.01 4.26 3.79 1.67 ECL Provision on Gross Loan Assets 8,532 8,468 7,658 6,426 ECL Provision as % of Gross Loan Assets 1.24 1.25 1.21 1.12 Excess Provision outstanding in books 2,954 2,954 2,954 2,954 Bad Debts (in millions) Q2 FY 2024 Q1 FY 2024 Q2 FY 2023 H1 FY 2024 H1 FY 2023 FY 2023 Bad Debts Written Off 63 47 40 110 93 169 % of Bad Debts written off to Gross Loan Assets 0.01 0.01 0.01 0.02 0.02 0.03 46#48LIABILITY MIX Maintaining a diversified funding profile* (%) 2 8 95 65 *Principal amount of Borrowings 24 224 (As of September 30, 2023) Ⓡ Muthoot Finance Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 213 mn (0%) Secured Non-Convertible Debentures - Listed - 134,847 mn (24%) Borrowings from Banks/Fls 361,740 mn (65%) - Subordinated Debt - Listed - 741 mn (0%) ■Commercial Paper - 46,176 mn (8%) ■Other Loans - 9,769 mn (2%) 47#49DOMESTIC CREDIT RATINGS Highest Rating among gold loan companies Short-term Rating Rating COMMERCIAL PAPER CRISIL RATINGS CRISIL A1+ ICRA LIMITED ICRA A1+ BANK LOANS ICRA LIMITED Long-term Rating Indicates Ⓡ Muthoot Finance ICRA A1+ Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk SUBORDINATED DEBT Rating CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED BANK LOANS ICRA LIMITED ICRA AA+(Stable) ICRA AA+(Stable) Indicates High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk 48 48#50Ⓡ INTERNATIONAL CREDIT RATINGS Muthoot Finance Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB(Stable) S&P GLOBAL RATINGS MOODY'S INVESTORS SERVICE BB(Stable) 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 49 49#51BREAK-UP OF TOTAL INCOME Interest Income Yearly 1,40,000 1,20,000 Ⓡ Muthoot Finance Quarterly (in millions) 1,40,000 1,09,560 1,20,000 1,03,285 1,03,686 1,00,000 1,00,000 85,644 80,000 80,000 60,000 53,641 49,077 42,703 48,130 56,546 62,021 67,570 59,724 60,000 49,562 40,000 40,000 30,147 29,577 24,746 20,000 20,000 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY H1 FY 2024* 2023* Other Than Interest Income Yearly Quarterly (in millions) 3000 3,000 2,458 2500 2,500 2000 1,584 1,751 2,000 1500 1,310 1,424 1,500 1,236 1,275 921 1000 1,000 620 543 589 686 566 500 397 500 289 230 0 0 Q2 FY Q2 FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* 2024* 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* *Under IND-AS 50#52OPERATING EXPENSES TO AVERAGE LOAN ASSETS Operational efficiency over the years Yearly (%) Quarterly Muthoot Finance (%) 8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 6.00 5.63 5.43 5.50 5.50 5.10 5.01 4.89 4.94 5.00 5.00 4.46 4.50 4.50 4.08 3.92 4.00 3.48 3.62 4.00 3.50 3.35 3.50 3.88 3.62 3.13 3.00 2.99 3.00 2.50 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* *Under IND AS 51#53Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly Muthoot Finance (in million) Quarterly (in millions) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Q2 FY 2024* 2024* Q2 FY Q1 FY H1 FY: H1 FY 2023* 2024* 2023* Employee Benefit Expenses 11,044 Rent 2,487 2,350 2,189 2,158 1,974 9,487 9,270 9,657 8,415 7,393 7,280 3,074 2,583 1,913 1,808 3,226 6,300 5,298 671 606 659 1,330 1,222 Advertisement & Publicity 1,581 1,197 1,190 1,163 1,056 720 531 400 238 311 711 705 Communication Costs 422 498 387 355 368 404 372 116 85 93 209 195 Traveling and Conveyance 365 271 210 273 240 182 186 107 92 96 203 175 Printing and Stationery 192 150 151 177 153 136 129 40 47 42 82 82 Repairs and Maintenance 505 568 276 283 280 304 362 148 106 140 288 233 Legal and Professional 402 283 387 260 203 154 124 134 68 140 274 133 Charges Business Promotion 206 7 369 720 481 209 201 98 59 68 166 97 Expenses Directors Remuneration 950 815 793 633 561 431 362 123 111 123 246 223 Depreciation and 583 539 507 431 421 439 482 154 135 133 288 264 Amortisation Expenses Others 2,440 2,098 2,075 1,677 1,260 2,970 835 686 391 589 1,274 1,330 Provision For Standard & 2,647 I NPA Assets Impairment on Financial 605 1,270 950 957 259 316 120 (127) 860 981 (704) instruments Total 21,782 19,533 18,754 18,744 15,670 15,571 15,319 5,871 4,394 6,480 12,351 9,253 *Under IND-AS 52#54Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly Muthoot Finance (%) Quarterly (%) Q2FY: Q2 FY Q1 FY! H1 FY H1 FY Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 2024* 2023* 2024 2024* : 2023* Employee Benefit Expenses 51 49 49 52 Rent 11 12 12 12 12 54 47 48 52 59 13 12 12 11 Advertisement & Publicity 7 6 6 6 7 5 3 7 115 50 51 57 14 10 11 13 5 6 8 Communication Costs 2 2 2 2 2 3 2 2 2 1 2 2 Traveling and Conveyance 2 1 1 1 2 1 1 2 2 1 2 2 Printing and Stationery 1 1 1 1 1 1 1 1 1 Repairs and Maintenance 2 3 1 2 2 2 2 3 2 2 12 1 ♡ Legal and Professional 2 1 2 1 1 1 1 2 2 2 2 1 Charges Business Promotion 1 2 4 3 1 1 Expenses Directors Remuneration 4 3 3 2 Depreciation and 3 3 3 2 3 3 3 Amortisation Expenses 2 2 3 Others 11 11 12 9 8 19 5 12 6 1 1 1 1 3 2 2 2 3 2 2 3 9 10 14 Provision For Standard & I 17 I 10 I NPA Assets Impairment on Financial 3 7 5 5 2 2 2 (3) 14 8 (7) instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 53 53#55Ⓡ PROFITABILITY RATIOS Yearly (%) Quarterly Muthoot Finance (%) (Based on Income) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY H1 FY 2024* 2023* Interest expense to Gross Income 35.08 34.56 34.92 32.00 32.51 30.50 39.92 37.62 36.06 35.15 36.40 36.79 Selling, general and administrative expenses to Net Income 30.09 24.40 25.13 29.26 32.24 28.93 34.88 29.19 27.41 27.96 28.56 30.59 Provisions & Write Offs to Net Income 0.88 1.75 1.38 1.61 0.59 5.44 8.16 0.63 (0.79) 4.38 2.53 (2.22) Operational expenses to Net Income 30.97 26.15 26.51 30.87 32.84 34.38 43.03 29.82 26.61 32.34 31.09 28.37 OPBDT / Net Income 69.03 73.85 73.49 69.13 67.16 65.62 56.97 70.18 73.39 67.66 68.91 71.63 Depreciation to Net Income 0.85 0.74 0.74 0.73 0.90 1.00 1.33 0.80 0.84 0.68 0.74 0.83 OPBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 69.38 72.55 66.98 68.17 70.80 PBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 69.38 72.55 66.98 68.17 70.80 PAT / Net Income 50.75 54.45 54.09 50.88 42.47 40.38 34.17 51.69 54.17 49.69 50.68 52.68 *Under IND-AS 54#56Ⓡ PROFITABILITY RATIOS Yearly Muthoot Finance (%) Quarterly (%) (Based on Average Loan Assets) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Q2 FY 2024* Q2 FY Q1 FY H1 FY 2023 2024* H1 FY 2024* 2023* Interest income to avg. loan assets 17.70 20.06 22.17 23.03 21.63 22.21 21.43 17.65 17.38 18.08 17.93 17.29 Interest expense to avg. loan assets 6.31 7.02 7.93 7.51 7.16 6.92 8.69 6.77 6.34 6.50 6.67 6.43 Net Interest Margin 11.38 13.03 14.24 15.53 14.47 15.29 12.74 10.88 11.04 11.58 11.27 10.86 Other income to avg. loan assets 0.30 0.26 0.53 0.43 0.40 0.47 0.35 0.34 0.20 0.42 0.38 0.20 Net Income Including Other 11.68 13.30 14.77 15.95 14.87 15.76 13.08 11.23 11.24 12.00 11.65 11.05 Income Selling, general and administrative expenses to avg. 3.52 3.25 3.72 4.68 4.80 5.32 4.56 3.28 3.08 3.35 3.33 3.38 loan assets Provisions and write offs to avg. 0.10 0.23 0.20 0.26 0.09 0.11 1.07 0.07 (0.09) 0.53 0.29 (0.25) loan assets PBDT to avg. loan assets 8.06 9.81 10.85 11.02 9.98 10.33 7.45 7.88 8.25 8.12 8.03 7.92 Depreciation to avg. loan 0.10 0.09 0.10 0.11 0.12 0.15 0.17 0.09 0.09 0.08 0.09 0.09 assets PBT to avg. loan assets 7.97 9.72 10.75 10.91 9.85 10.19 7.28 7.79 8.16 8.04 7.94 7.83 Tax to avg. loan assets 2.04 2.48 2.76 2.79 3.54 PAT to avg. loan assets 5.93 7.24 7.99 8.12 3.82 2.81 6.31 6.36 4.47 1.99 2.07 2.08 2.04 2.00 5.80 6.09 5.96 5.90 5.82 Cash Profit to avg. loan assets 6.03 7.33 8.09 8.23 6.44 6.51 4.65 5.89 6.18 6.04 5.99 5.91 *Under IND-AS 55#57PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT 55,000 50,000 45,000 40,000 40,574 35,000 30,000 25,000 20,000 19,210 15,114 19,721 13,168 17,776 15,000 11,936 10,279 10,042 10,000 11,798 7,801 8,096 5,000 6,705 0 Quarterly PBT PAT 53,094 45,000 50,065 46,664 40,000 39,543 35,000 37,222 30,000 30,768 34,735 26.447 25,000 28,447 30,183 22,433 19,661 20,000 16,692 15,000 13,302 13,145 11,614 9,910 9,751 10,000 8,672 5,000 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* *Under IND-AS 0 Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* 56#58NETWORTH Steady capital position Share Capital and Reserves & Surplus Ⓡ Muthoot Finance (in millions) 2,21,805 2,10,619 2,11,771 1,92,301 1,83,445 2,40,000 2,20,000 2,00,000 1,80,000 1,60,000 1,52,389 1,40,000 1,20,000 1,15,718 97,928 1,00,000 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* Mar-22* Sep-22* Mar-23* Jun-23* Sep-23* *Under IND-AS 57 57#59RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 55 55 50 50 45 45 40 40 35 35 30.15 28.26 27.77 30 30 24.81 25 25 22.40 23.55 18.29 20 18.47 18.47 17.77 19.50 19.44 18.19 20 20 17.63 15 14.35 15.13 15 10 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18*Mar 19* Mar 20*Mar 21 * Mar 22*Mar 23* 0 *Under IND-AS Q2 FY 2024* Q2 FY 2023* Q1 FY 2024* H1 FY 2024* H1 FY 2023* 58#60Ⓡ Muthoot Finance CAPITAL RATIO Maintaining capital well above the statutory requirement of 15% Capital Adequacy Ratio Capital Adequacy Ratio Tier-I Tier-II (%) Sep-23 Jun-23 Mar-23 Sep-22 30.31 30.03 31.77 31.96 29.55 29.27 31.01 31.07 0.76 0.76 0.76 0.89 59 59#61MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Earnings per share (*) - Basic Diluted Ⓡ Muthoot Finance Q2 FY 2024 Q2 FY 2023 Q1 FY 2024 H1 FY 2024 H1 FY 2023 FY 2023 24.69 21.61 24.29 48.98 41.59 86.54 24.68 21.61 24.29 48.97 41.58 86.52 Sep-23 Jun-23 Mar-23 Sep-22 Book Value per share (*) 552.41 527.42 524.56 478.95 Market price per share (₹)** 1,252.35 1,239.65 979.95 1,040.05 Price to Earnings ratio*** 13.33 13.65 11.32 11.41 Price to Book Value ratio 2.27 2.35 1.87 2.17 **Source: www.nseindia.com ***Based on trailing 12 months EPS 60 60#62CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (In millions) Sep-23 Jun-23 Mar-23 Sep-22 Outside Liabilities 572,272 530,708 515,579 486,693 Cash and Cash Equivalents & Bank 61,680 35,136 64,428 57,904 Balances Tangible Networth 221,769 211,732 210,584 192,270 Capital Gearing 2.30 2.34 2.14 2.23 61#63Ⓡ TEAM STRENGTH Muthoot Finance Groomed human capital over the years to meet growing business requirements 29000 28000 27000 26000 24881 25012 25000 24000 23000 22000 21000 20000 (No. of Employees) 28097 27204 27273 27701 26716 25911 25554 24205 24224 22882 23455 22781 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 62 62#64OUR SUBSIDIARY Ⓡ Muthoot Finance ASIA ASSET FINANCE PLC A finance company with a golden heart 63 63#65ASIA 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 September 30,2023, total holding in AAF stood at 91 million equity shares. representing 72.92% of their total capital. The loan portfolio stands at LKR 19,581 million as on September 30, 2023 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 80 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 53 years, evolving to serve the growing needs of people of Sri Lanka. 64#66BRANCH NETWORK pa P P pa AS ON SEPT 30, 2022 AS ON SEPT 30, 2023 80 Branches INCREASE IN BRANCH NETWORK 27% YoY AT 63 Branches 80 BRANCHES 65#67PROFIT AFTER TAX pa P QUARTER ENDED JUNE 30, 2023 LKR 5.52 Crores pa P QUARTER ENDED SEPT 30, 2023 LKR 7.20 Crores INCREASE IN PROFIT AFTER TAX 31% QoQ AT LKR 7.20 CRORES 99 66#68Ⓡ PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance o Fixed Deposits 。 Leasing 。 Business Loan o Personal Loan o Group Personal Loan o Corporate Loans 。 Mortgage Loans 。 Factoring 。 Short Term Loans Micro Finance 。 Loan against Gold Jewellery 67#69BRANCH NETWORK ASIA ASSET FINANCE PLC A finance company with a golden heart Pa Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients 68 60#70Key Financial Parameters Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) Particulars LKR/INR Number of branches Number of Employees H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 0.2562605 0.224767 0.2562605 0.26625 0.249700 80 63 80 77 75 523 413 523 595 590 Gross Loan AUM (LKR) 19,581 19,300 19,581 20,102 21,201 Capital Adequacy Ratio (%) 25 25 25 23 26 Total Revenue (LKR) 3,458 2,632 1,735 1,723 6,006 Total Expense (LKR) 3,296 2,422 1,654 1,642 5,647 Profit Before Tax (LKR) 162 210 81 81 360 Profit After Tax (LKR) 127 150 72 55 295 Shareholders Funds (LKR) 3,138 2,877 3,138 3,066 3,011 Total Outside Liabilities (LKR) 22,296 19,324 22,296 22,782 22,002 Total Assets (LKR) 25,434 22,200 25,434 25,848 25,013 69#71OUR SUBSIDIARY Ⓡ Muthoot Finance Da Muthoot Homefin 10 70#72Ⓡ MUTHOOT HOMEFIN - AN OVERVIEW Muthoot Homefin Muthoot Finance 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 September 30, 2023, it has a loan AUM of Rs. 16, 157 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 and CARE assigned Long Term Debt Rating of CARE AA+/Stable for its Non Convertible debentures. 71#73LOAN PORTFOLIO pa AS ON SEPT 30, 2023 1,616 Crores AS ON SEPT 30, 1,420 Crores 2022 INCREASE IN LOAN PORTFOLIO 14% YoY AT 1,616 CRORES 12 72#74LOAN DISBURSEMENT pa HALF YEAR ENDED SEPT 30, 2023 P HALF YEAR ENDED SEPT 30, 2022 278 Crores INCREASE IN LOAN DISBURSEMENT 164% YoY AT 105 Crores 278 CRORES الله 73#75PROFIT AFTER TAX HALF YEAR ENDED SEPT 30, 2023 9 Crores pa HALF YEAR ENDED SEPT 30, 2022 4 Crores INCREASE IN PROFIT AFTER TAX 133% YoY AT 9 CRORES 74#76Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 Number of branches 122 108 122 111 108 Number of Sales Offices 122 108 122 111 108 Number of Employees 512 299 512 418 346 Gross Loan AUM (*) Gross Loan Assets (*) Capital Adequacy Ratio (%) 16,157 14,196 16,157 15,007 14,381 12,934 10,372 12,934 11,641 10,871 50 50 62 50 52 66 Total Revenue (*) 925 750 490 435 1,548 Total Expense (*) 800 698 430 371 1,407 Profit Before Tax (*) 125 53 61 64 141 Profit After Tax (*) 91 39 +4 44 47 104 Shareholders Funds (*) 4,666 4,510 4,666 4,622 4,575 Total Outside Liabilities (*) 10,799 7,481 10,799 9,312 7,536 Total Assets (*) 15,464 11,991 15,464 13,934 12,111 75#77Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 Disbursement (*) 2,779 1,051 1,684 1,094 2,235 Borrowings (*) 9,467 6,949 9,467 8,191 6,602 Debt Equity Ratio (%) 2.03 1.54 2.03 1.77 1.44 Yield on Advances (%) 13.33 12.36 13.31 13.34 12.70 Interest Spread (%) 4.57 4.14 4.56 4.63 4.32 NIM (%) 7.36 6.57 7.08 7.65 7.04 Cost to Income Ratio (%) 49.26 52.86 49.38 49.13 52.85 Return on Assets (ROA) (%) 1.57 0.76 1.45 1.71 1.00 Return on Equity (ROE) (%) 3.94 1.74 1.89 4.12 2.30 Stage III Loan Assets 510 449 510 462 436 % Stage III assets on Gross Loan 3.95 4.33 3.95 3.97 4.01 Assets Stage III ECL Provision 321 302 321 325 289 ECL Provision 371 371 371 395 358 ECL Provision as a % of Gross Loan Assets 2.87 3.58 2.87 3.39 3.29 Number of Customers 22,255 21,027 22,255 21,608 21,223 76 16#78Ⓡ Financial Highlights • • • • . Muthoot Homefin Muthoot Finance Disbursements of INR 1684 mn in Q2 FY 2024: AUM INR 16157 mn as on September 30, 2023: Loan Book INR 12934 mn as on Sep 30, 2023: Average Ticket Size in Q2 FY 2024: INR 0.96 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 122 locations ROA 1.45% for Q2 FY 2024: ; ROE 1.89% for Q2 FY 2024: Average cost of borrowings 8.75% for Q2 FY 2024. Capital Adequacy Ratio: 50.05%, Debt Equity Ratio: 2.03 Average Yield 13.33%, Interest Spread: 4.56% Received PMAY subsidy of INR NIL mn in Q2s FY 2024. Growth Drivers Profitability Opportunities . Increasing the leverage from 2.03 times 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 and CARE AA+ which indicates low risk will help in lower cost of funds. Short Term Rating: ICRA A1+ / CARE A1+. Debt/Equity ratio at 2.03 times as on September 30, 2023, 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 77#79OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 78#80Ⓡ 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 Q2 FY24, it has insured more than 861,400 lives with a First year premium collection of Rs. 1,262 million under Traditional, Term and Health products.. During Q2 FY23, it has insured more than 12,17,000 lives with a First year premium collection of Rs.1,151 million under Traditional, Term and Health products.. 79#81TOTAL REVENUE P HALF YEAR ENDED SEPT 30, 2022 pa HALF YEAR ENDED SEPT 30, 2023 47 Crores INCREASE IN TOTAL REVENUE 85% YoY AT 25 Crores 47 CRORES 80 60#82PROFIT AFTER TAX HALF YEAR ENDED SEPT 30, 2023 25 Crores HALF YEAR ENDED SEPT 30, 16 Crores INCREASE IN PROFIT AFTER TAX 60% YoY AT 25 CRORES 2022 81#83Key Business Parameters Particulars Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 Premium Collection (*) 3,099 2,827 1,622 1,477 6,505 Number of Policies 17,91,376 24,15,006 875,081 916,295 46,86,920 Key Financial Parameters (in millions) Particulars H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 Total Revenue (*) 467 252 309 159 678 Total Expense (*) 109 39 88 21 71 Profit Before Tax (*) 359 214 221 138 607 Profit After Tax (*) 254 158 152 102 464 Shareholders Funds (*) 1,842 1,282 1,842 1,690 1,588 Earnings per share (*) 339 211 203 136 618 82#84OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 83 83#85Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of September 2023, Muthoot Finance holds 59.02% 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 fourteen 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 September 30, 2023, BML operations are spread over 17 states and 2 UT (Tamil Nadu, Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Uttarakhand,West Bengal, Haryana, Punjab, Tripura and Delhi. It has 946 branches, with 184 controlling regional offices and employs 9491 staffs. Its gross loan AUM has grown from INR 0.20 mn in March 2009 to INR 78,741 mn in September 2023 84#86LOAN PORTFOLIO pa AS ON SEPT 30, 2022 5,138 Crores AS ON SEPT 30, 2023 7,874 Crores INCREASE IN LOAN PORTFOLIO 53% YoY AT 7,874 CRORES 85 55#87LOAN DISBURSEMENT Pe HALF YEAR ENDED SEPT 30, 2023 HALF YEAR ENDED SEPT 30, 2022 15 4,294 Crores INCREASE IN LOAN DISBURSEMENT 76% YoY AT 2,444 Crores 4,294 CRORES 86#88PROFIT AFTER TAX P HALF YEAR ENDED SEPT 30, 2023 135 Crores Da HALF YEAR ENDED SEPT 30, 2022 35 Crores INCREASE IN PROFIT AFTER TAX 284% YoY AT 135 CRORES PROFIT AFTER TAX FOR HALF YEAR SURPASSED ENTIRE PREVIOUS YEAR'S PROFIT AFTER TAX 87#89Key Financial Parameters Particulars Pa Muthoot Finance (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 Number of Branches 946 715 946 782 768 Number of Employees 9,491 7,065 9,491 8,421 8,022 Gross Loan AUM (*) 78,741 51,381 78,741 70,082 61,925 Gross Loan Assets (*) 64,654 41,709 64,654 55,914 47,134 Capital Adequacy Ratio (%) 21 24 21 22 22 Total Revenue (*) 7,912 4,551 4,309 3,603 10,379 Total Expense (*) 6,137 4,108 3,213 2,925 8,686 Profit Before Tax (*) 1,774 443 1,096 678 1,693 Profit After Tax (*) 1,348 351 831 517 1,303 Stage III Loan Assets 957 3,552 957 906 1,146 % Stage III assets on Gross Loan 1.48 8.52 1.48 1.62 2.43 Assets Stage III ECL Provision 870 2,545 870 789 840 ECL Provision 1,437 2,698 1,437 1,104 957 ECL Provision as a % of Gross Loan Assets 2.22 6.47 2.22 1.97 2.03 Shareholders Funds (*) 12,237 9,972 12,237 11,445 10,923 Total Outside Liabilities (*) 57,892 37,287 57,892 52,389 51,346 Total Assets (*) 70,128 47,259 70,128 63,834 62,269 88#90OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 89#91MUTHOOT 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 gold loans and loans for commercial vehicles and equipments. The operations are now centered in Hyderabad. As on 30th September, 2023 it has a total loan portfolio of Rs.6,302 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 00 90#92Muthoot Money Muthoot Finance Key Financial Parameters Particulars Number of branches (in millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 276 139 276 185 149 Number of Employees 1,040 712 1,040 1,154 920 Gross Loan AUM (*) 6,302 2,337 6,302 4,961 3,870 Capital Adequacy Ratio(%) 74 40 74 19 24 Total Revenue (*) 472 236 267 205 564 Total Expense (*) 475 233 269 206 561 Profit Before Tax (*) (3) 3 (2) (1) 3 Profit After Tax (*) (2) 2 (2) (1) 2 Stage III Loan Assets 111 132 111 122 144 % Stage III assets on Gross Loan AUM 1.76 5.63 1.76 2.46 3.72 Stage III ECL Provision 41 58 41 46 55 ECL Provision 74 73 74 74 78 ECL Provision as a % of Gross Loan AUM 1.17 3.12 1.17 1.49 2.01 Shareholders Funds (*) 5,036 1,038 5,036 1,038 1,038 Total Outside Liabilities (*) 2,008 1,724 2,008 4,537 3,304 Total Assets (₹) 7,044 2,762 7,044 5,575 4,342 91#93OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth Muthoot Finance H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 1,172 1,112 1,172 1,157 MUTHOOT TRUSTEE PRIVATE LIMITED Networth (In millions) FY 2023 1,141 (In millions) H1 FY 2024 H1 FY 2023 Q2 FY 2024 Q1 FY 2024 FY 2023 10 10 10 10 10 92 92#94Thank You Muthoot Family - 800 years of Business Legacy