#1Muthoot Finance INDIA'S #1 MOST TRUSTED FINANCIAL SERVICES BRAND 2023# Great Place To WorkⓇ Certified DEC 2022 - DEC 2023 INDIA TM Financial Results Q1 FY 2024 June 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 Muthoot Money Limited Asia Asset Finance PLC Microfinance Vehicle Finance Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Listed Diversified NBFC in Sri Lanka Insurance Broking Muthoot Trustee Private Limited 56.97 100.00 72.92 100.00 100.00 100.00 2#4Performance Highlights Q1 FY24 白Ⓡ Increase in Consolidated Loan AUM: 21% YoY at 76,799 Crores Highest ever Quarterly Gold Loan Disbursement: 53,612 Crores All time high Gold Loan Portfolio Growth in any Q1: 4,164 Crores Increase in Consolidated Profit After Tax: 27% YoY at 1,045 Crores 龜 Increase in Standalone Profit After Tax: 22% YoY at 975 Crores All time high Interest Collection 2,863 Crores in any Q1: Pa Muthoot Finance 3#5CONSOLIDATED LOAN AUM As on June 30, 2022 63,444 Crore pa As on June 30,76,799 Crore 2023 Pa Muthoot Finance INCREASE IN CONSOLIDATED LOAN AUM : 21% YoY at 76,799 Crore 4#6GOLD LOAN DISBURSEMENT In Q1 FY24 53,612 Crore Pa Muthoot Finance HIGHEST EVER QUARTERLY GOLD LOAN DISBURSEMENT 53,612 Crore 5 сл#7GOLD LOAN PORTFOLIO GROWTH Pa Muthoot Finance As on June 30, 2023 66,039 Crore As on March 31, * 61,875 Crore 2023 ALL TIME HIGH GOLD LOAN PORTFOLIO GROWTH IN ANY Q1 * 4,164 Crore 6#8CONSOLIDATED PROFIT AFTER TAX Q1 FY23 825 Crore Q1 FY24 1,045 Crore Pa Muthoot Finance INCREASE IN CONSOLIDATED PROFIT AFTER TAX : 27% YoY at 1,045 Crores 7#9STANDALONE PROFIT AFTER TAX Q1 FY23 802 Crore Pa Q1 FY24 975 Crore Pa Muthoot Finance INCREASE IN STANDALONE PROFIT AFTER TAX : 22% YoY at 975 Crores 8#10INTEREST COLLECTION P In Q1 FY24 2,863 Crore % % % % Pa Muthoot Finance ALL TIME HIGH INTEREST COLLECTION IN ANY Q1 9#11TOTAL NUMBER OF BRANCHES PET 鱼丝 Pa Muthoot Finance As on June 30, 2023 5,897 59 NEW BRANCHES OPENED 10 10#12Pa Muthoot Finance Muthoot Finance awarded "India's Most Trusted Financial Services Brand 2023" for 7th Year in a row by TRA's Brand Trust Report TRA's BRAND TRUST REPORT India Study 2023 Ranks MUTHOOT FINANCE India's Most Trusted Financial Services Brand in a study covering 8000 brands across 16 cities N. Chandramouli CEO Trust Research Advisory TRA's BRAND TRUST REPORT India Study 2023 Power of Trust RA Quest for Truth COMNISCIENT Group Initiative INDIA'S MOST TRUSTED Financial Services Brand 2023 Da Muthoot Finance 11#13Pa Muthoot Finance Muthoot Finance certified as a "Great Place to Work" by the Great Place to Work Institute for 2nd Year in a row in Dec'22 Great Place To WorkⓇ Certified DEC 2022 - DEC 2023 INDIA TM 12#14THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance YOY Q1 FY 2024 Q1 FY 2023 FY 2023 (%) 5,897 5,667 5,838 Consolidated Loan Assets Under Management* of the Group ( in million) 767,987 634,439 714,968 21 Consolidated Profit after tax of the Group (in million) 10,447 8,250 36,698 27 Contribution in the Consolidated Loan Assets Under Management* of the Group 88 89 88 Muthoot Finance (%) 12 11 12 Subsidiaries (%) Contribution in the Consolidated Profit after tax of the Group Muthoot Finance (%) Subsidiaries (%) *Principal amount of Loan assets 93 96 97 94 7 3 6 13#15THE GROUP Loan Assets Under Management* of the Group Jun-23 Ⓡ Muthoot Finance (in millions) Mar-23 Jun-22 YoY (%) Muthoot Finance Limited 676,385 632,098 566,892 19 Muthoot Homefin (India) Limited 15,007 14,381 14,748 2 Belstar Microfinance Limited 70,082 61,925 46,964 49 Muthoot Money Limited 4,961 3,870 1,976 151 Asia Asset Finance PLC 5,352 5,294 3,859 39 Less: Intra-Group Loan Assets 3,800 2,600 (100) Total 767,987 714,968 634,439 21 *Principal amount of Loan assets 14#16THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance (in millions) YOY Q1 FY 2024 Q1 FY 2023 FY 2023 (%) 9,751 8,020 22 22 34,735 Muthoot Homefin (India) Limited 47 14 236 104 Muthoot Insurance Brokers Private Limited 102 71 44 464 Belstar Microfinance Limited 517 138 275 1,303 Muthoot Money Limited (0.57) 0.49 (216) 2 Asia Asset Finance PLC 15 11 33 33 70 Muthoot Asset Management Private Limited 15 8 88 88 46 Muthoot Trustee Private Limited 0.13 0.03 333 0.27 15#17Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Jun-23 Ⓡ Muthoot Finance (in millions) Mar-23 Jun-22 Cash and cash equivalents 42,930 77,702 66,145 Bank Balance other than above 4,432 2,655 2,453 Derivative Financial Instruments 1,411 Trade Receivables 85 99 66 Loans Investments Other Financial Assets Non-Financial Assets 758,097 705,544 630,210 6,008 5,457 6,607 3,616 3,453 2,907 Current Tax Assets (Net) 388 475 108 Defered Tax Assets (Net) 701 641 1,215 Investment Property 87 82 72 Property, Plant and Equipment 3,323 3,272 2,831 Right to use Asset 147 142 133 Captial Work-In-Progress 758 674 837 Goodwill 300 300 300 Other Intangible Assets 61 59 57 Intangible assets under development 1 Other Non Financial Assets 999 934 768 Total Assets 821,932 801,489 716,121 16#18Consolidated Statement of Assets and Liabilities Ⓡ Muthoot Finance (in millions) Particulars Jun-23 Mar-23 Jun-22 LIABILITIES Financial Liabilities Derivative Financial Instruments 1,749 1,922 3,096 Trade Payables 1,165 1,341 1,661 Other Payables 795 817 6 Debt Securities 135,621 146,046 130,424 Borrowings(other than Debt securities) 433,233 405,975 364,973 Deposits 3,775 3,315 1,877 Subordinated Liabilities 3,540 2,546 2,999 Lease Liability 161 155 145 Other Financial Liabilities 11,496 12,576 11,765 Non-Financial Liabilities Current Tax Liabilities(net) 2,343 812 2,315 Provisions 3,858 3,619 3,703 Deferred Tax Liabilities(net) 138 153 172 Other Non-Financial Liabilities 628 683 634 EQUITY Equity attributable to equity owners of the company 218,318 216,658 188,011 Non-Controlling Interest 5,112 4,871 4,340 Total Liabilities and Equity 821,932 801,489 716,121 17#19Consolidated Financial Results Particulars Income Interest Income Service Charges Sale of Services Other Income Income other than above Total Income Ⓡ Muthoot Finance (in millions) YOY Q1 FY 2024 Q1 FY 2023 FY 2023 (%) 33,784 27,301 24 115,555 348 274 27 1,371 25 22 12 113 370 160 132 773 560 286 95 1,937 35,087 28,043 25 119,750 Expenses Finance Cost 12,359 10,509 18 42,092 Impairment of Financial Instruments 1,586 (99) 1702 2,420 Net Loss on derecognition of financial instruments 20 (100) Employee Benefit Expenses 4,273 3,447 24 14,883 Depreciation, Amortisation and Impairment 192 171 13 782 Other Expenses 2,609 2,876 (9) 10,346 Total Expenses 21,019 16,924 24 70,522 Profit before tax 14,068 11,119 27 49,228 Tax expense 3,621 2,870 26 12,530 Profit after Tax 10,447 8,250 27 36,698 Earnings per share -Basic (*) 25.46 20.41 25 89.99 Earnings per share -Diluted (*) 25.46 20.40 25 89.98 18#20Ⓡ 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 Business loans Corporate Loans $ Collection Services Personal Loans Small Business Loans 19#21MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 182 tonnes Gold jewellery kept as security 4,700+ Pan-India branches 27,000+ Team members * 676,385 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day (As of June 30, 2023) 20#22SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 23 3.65 73.35 Ⓡ Muthoot Finance (%) Shareholding as on June 30, 2023 Promoter & Promoter group FII, FC, MF & Others ■ Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on June 30,2023) 391,847 million 21 221#23BOARD OF DIRECTORS - PROMOTER GROUP George Jacob Muthoot Chairman Muthoot Finance (1/2) George Alexander Muthoot Managing Director Whole time Director George Thomas Muthoot Alexander George Whole time Director George M George Whole time Director George M Jacob Whole time Director George Alexander Whole time Director 22 22#24BOARD OF DIRECTORS - INDEPENDENT DIRECTORS Jacob Benjamin Koshy Independent Director Usha Sunny Independent Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director Abraham Chacko Independent Director C A Mohan Independent Director Ⓡ Muthoot Finance (2/2) V. A. George Independent Director 23 23#25Ⓡ 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 24 24#26Pa Muthoot Finance GEOGRAPHICAL PRESENCE A strong presence of 4742 branches across India (%) Branches region wise State wise Branch Network 59 59 17 7 ■ East North 17 ■ West ■South (As of June 30, 2023) Jammu & Kashmir 17 Himachal Pradesh Punjab 13 191 Uttarakhand Chandigarh 10 Haryana 142 23 Delhi 226 Rajasthan 146 Uttar Pradesh 194 Assam 34 Bihar 25 Tripura 4 Gujarat 212 Madhya Pradesh 107 Jharkhand 17 West Bengal $163 Daman & Diu 01 Chhattisgarh 27 Odisha 79 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 277 Dadra & Nagar Haveli 01 Telangana 314 Goa 36 Karnataka 536 Andhra Pradesh 426 Pondicherry Tamil Nadu 7 Kerala 980 526 Andaman & Nicobar Islands 8 25 45#27DIGITAL 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 Less cash handling at branch 440 682 Pa Muthoot Finance POS Terminals Enables swiping of Debit cards issued by banks Swiping charges for Interest payments waived off Paytm पेPhonePe Google Pay BBPS BHARAT BILL PAYMENT SYSTEM NPCI भारतीय राष्ट्रीय भुगतान निगम NATIONAL MUNTE CORPORATION OF INDIA Loan repayment option through • Paytm Phone Pay Google Pay BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance UPI Powered by NPCI 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 26#28Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • . • • • Muthoot Finance 38.7 % of gold loan customers are transacted online. (including Paytm, PhonePe & Google Pay) Muthoot Online Our online services has r Muthoot nline Muthoot Online, from Weuray eamer. 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 54.2 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs. 13,752 Crs payments from 4.93 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 27#29DIGITAL 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 28 28#30Muthoot Finance (in millions) Jun-23 Mar-23 Jun-22 Standalone Statement of Assets and Liabilities Particulars ASSETS Financial assets Cash and cash equivalents 34,871 64,288 58,445 Bank Balance other than above 2,296 324 663 Derivative Financial Instruments 1,411 Trade Receivables 33 16 38 Loans Investments 686,034 642,649 577,160 13,161 13,169 14,836 1,559 1,336 1,339 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 394 402 526 Property, Plant and Equipment 2,724 2,682 2,642 Captial Work-In-Progress 758 674 518 Other Intangible Assets 39 36 36 Other Non Financial Assets 610 623 462 Total Assets 742,479 726,198 658,076 29 29#31Standalone Statement of Assets and Liabilities Particulars Ⓡ Muthoot Finance (in millions) Jun-23 Mar-23 Jun-22 LIABILITIES Financial Liabilities Derivative Financial Instruments 1,734 1,892 3,096 Trade Payables 1,794 1,959 1,559 Debt Securities 127,288 137,384 124,248 Borrowings(other than Debt securities) 384,232 358,992 328,090 Subordinated Liabilities 737 967 1,424 Other Financial Liabilities 8,459 9,564 10,169 Non-Financial Liabilities Current Tax Liabilities(net) 2,312 789 2,205 Provisions 3,730 3,516 3,607 Other Non-Financial Liabilities 422 515 428 EQUITY Equity Share Capital Other Equity Total Liabilities 4,014 4,014 4,014 207,756 206,605 179,236 742,479 726,198 658,076 30#32REVENUE & PROFIT Standalone Financial Results INCOME Ⓡ Muthoot Finance (in millions) YOY Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 Growth FY 2023 (%) Interest Income 29,577 27,940 24,816 19 103,686 Other than Interest Income 686 698 277 148 1,751 Total 30,263 28,638 25,093 21 105,437 EXPENSES Finance Cost 10,638 9,407 9,416 13 36,991 Employee benefit Expense 3,226 3,086 2,715 19 11,044 Administrative & Other expenses 2,138 2,441 2,480 (14) 8,599 Impairment on Financial Instruments 860 753 (577) (249) 605 Directors Remuneration 123 616 112 10 950 Depreciation & Amortisation 133 171 129 3 583 Total 17,118 16,474 14,275 20 58,773 PROFIT Profit Before Tax 13,145 12,164 10,818 22 46,664 Profit After Tax 9,751 9,027 8,020 22 34,735 31#33EQUITY Strong Capital Base Networth Jun-23 Mar-23 Ⓡ Muthoot Finance (in millions) Jun-22 Equity Share Capital 4,014 4,014 4,014 Other Equity 207,756 206,605 179,236 Total 211,771 210,619 183,250 32 32#34ASSETS Core focus continues to be gold loan Gross Loan Assets under management* Gross loan assets under management Jun-23 Mar-23 В Ⓡ Muthoot Finance Jun-22 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) 676,385 632,098 566,892 19 7 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 660,388 618,753 561,766 18 7 15,997 13,345 5,126 212 20 20 33 33#35LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Jun-23 Mar-23 Jun-22 Growth Growth (in million) (in million) (in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures (Muthoot Gold Bonds) 357 845 1,945 (82) (58) Secured Non-Convertible Debentures- Listed 127,067 136,694 122,542 4 (7) Borrowings from Banks/Fls 306,275 296,243 233,483 31 3 External Commercial Borrowings- Senior secured 26,664 45,194 78,973 (66) (41) Notes Subordinated Debt -Listed 741 971 1,431 (48) (24) Commercial Paper 39,246 11,536 240 Other Loans 12,161 6,150 15,893 (23) 98 Total 512,511 497,633 454,267 13 3 *Principal amount of Borrowings 34 34#36GOLD 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) 660 619 575 562 519 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Mar-23 Jun-23 *Principal amount of gold Loan assets 35 55#37GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security Ⓡ Muthoot Finance (In tonnes) 200 187 180 182 180 176 178 171 169 160 155 149 142 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Mar-23 Jun-23 36#38Ⓡ 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 Jun-22 Mar-23 Jun-23 East 5 6 6 7 7 8 8 9 9 9 9 10 10 West 11 13 15 17 18 19 20 19 19 19 19 19 19 North 19 22 22 ■South 65 59 57 ㄓ3 22 23 23 54 52 52 50 49 22 23 23 22 22 22 23 23 49 50 50 50 48 48 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 Jun-22 Mar-23 Jun-23 260 216 6 2 233 243 272 288 336 408 519 575 562 619 660 *Principal amount of Gold Loan Assets 37#39Ⓡ 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 63.69 66.70 63.20 55.01 56.93 50.63 55 35 15 (in millions) 139.26 130.57 124.61 121.67 112.10 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Mar-23 Jun-23 *Principal amount of Gold Loan Assets 38#40HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections Pa Muthoot Finance (in billions) 4845 4341 4342 5554 65 6158 60 6869 167 148 179 173 165 156 12732 10301 8887 112 100 98 98 102 10406 91 90 =2 87 82 85 77 77 6970 70 5252 FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 Q1 Q2 ■ Avg Monthly Disbursement ■Avg Monthly Collection Strong level of disbursements and collections 39 99#41HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 62% 80% 60% 40% 20% 0% FY15 FY16 FY17 FY18 FY 19 FY 20 FY 21 FY 22 ■ 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 40 40#42Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Jun-23 Mar-23 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Gold Loan assets (in Billions) 660 619 562 575 519 407 336 288 272 243 Quantity of Gold content in 182 180 178 187 171 176 169 155 149 142 Ornaments held as Security (Tonnes) Gold Price/gm (*) 5,318 5,473 4,659 4,716 4,048 3,955 2,910 2,824 2,725 2,670 Lender's Perspective Market Price of Gold Content in 967 985 829 882 692 696 492 438 406 379 Ornaments (in Billions) Margin of safety on loans 32% 37% 32% 35% 25% 42% 32% 34% 33% 36% Borrower's Perspective Market Value of Gold Ornaments (* in Billions) with 20% additional value towards making charges etc 1,160 1,182 995 1,058 830 835 590 526 487 455 Equity of Borrower in the Gold Ornaments net of loans availed 43% 48% 44% 46% 37% 51% 43% 45% 44% 47% * Above calculations are made on overall portfolio and excludes interest accrued on loans 41#43CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Jun-23 Mar-23 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 Gold Loan AUM (in Millions) 660,388 618,753 561,766 575,313 519,266 407,724 335,853 QoQ % change in Gold Loan AUM 7 9 (2) 6 5 No. of Loan Accounts 83,35,866 81,46,997 80,90,132 83,69,535 84,10,139 80,22,325 80,62,139 QoQ % change in no.of loan accounts 2 1 (3) (2) 5 No. of Active customers 54,12,660 53,23,362 51,73,166 53,16,246 51,90,220 49,33,886 47,21,243 QoQ % change in no.of customers 2 2 (3) 3 1 42#44CUSTOMER BASE Highly churning customer base (2/2) Above Gold Loan AUM and No. of customers includes: Ⓡ Muthoot Finance Jun-23 Mar-23 Jun-22 Mar-22 Mar-21 Mar-20 Mar-19 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) 412,206 401,638 393,018 427,472 432,320 352,036 380,171 8 8 8 8 8 7 8 35,383 35,814 27,646 40,233 29,170 21,806 20,023 7 355,760 333,907 314,152 372,764 361,090 346,626 360,251 6 6 7 7 7 8 36,699 34,506 26,162 42,954 27,528 25,622 23,148 744,800 660,475 736,855 763,317 756,618 702,566 779,363 15 14 17 48,859 42,368 42,751 14 66,668 12 56,499 61,505 69,973 14 14 43#45YIELD 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 18.48 18.00 18.08 17.30 18.00 16.00 14.00 15.29 12.74 14.20 15.53 14.24 13.03 16.00 14.00 11.38 12.26 12.00 11.58 10.84 12.00 9.79 10.47 11.38 10.74 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 6.50 6.56 6.22 6.00 6.00 Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* 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 44 44#46INTEREST SPREAD Yearly (%) Quarterly В Ⓡ Muthoot Finance (%) 26.00 26.00 24.00 23.03 21.66 22.21 22.17 24.00 21.43 22.00 21.23 20.27 22.00 19.31 19.72 20.06 20.00 20.00 17.70 18.48 18.00 18.08 17.30 18.00 16.00 16.00 14.04 13.45 13.49 14.00 12.42 14.00 11.88 11.99 12.00 10.93 10.80 10.90 12.23 12.00 9.24 10.53 9.69 10.00 9.00 8.99 10.44 8.76 8.39 8.38 8.68 10.00 9.67 8.92 8.07 8.01 8.41 8.04 8.00 9.37 7.93 8.00 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 6.00 Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* Interest Income on Average Loan Assets Interest Expenses on Average Borrowings Interest Spread 45 45#47RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 8.00 7.00 6.00 Ⓡ Muthoot Finance (%) Quarterly (%) 10.00 9.00 8.11 7.99 7.24 8.00 6.36 6.19 7.00 5.93 5.96 5.97 6.00 5.59 5.00 5.00 4.05 4.47 4.00 3.22 4.00 3.32 3.03 3.00 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 *Mar-19*Mar-20*Mar-21*Mar-22*Mar-23* *Under IND-AS Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* 46#48IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Jun-23 Mar-23 Jun-22 633,637 599,834 550,202 Stage I Loan Assets Stage II Loan Assets 13,958 8,278 4,612 Stage III Loan Assets 28,789 23,986 12,078 % Stage III Assets on Gross Loan Assets 4.26 3.79 2.13 ECL Provision on Gross Loan Assets 8,468 7,658 6,594 ECL Provision as % of Gross Loan Assets 1.25 1.21 1.16 Excess Provision outstanding in books 2,954 2,954 2,954 Bad Debts (in millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 Bad Debts Written Off 47 36 53 169 % of Bad Debts written off to Gross Loan Assets 0.01 0.01 0.01 0.03 47#49LIABILITY MIX Maintaining a diversified funding profile* (%) * 5 8 2 60 60 *Principal amount of Borrowings 25 55 (As of June 30, 2023) Ⓡ Muthoot Finance Secured Non-Convertible Debentures (Muthoot Gold Bonds) - 357 mn (0%) Secured Non-Convertible Debentures - Listed - 127,067 mn (25%) - Borrowings from Banks/Fls 306,275 mn (60%) External Commercial Borrowings- Senior secured Notes - * 26,664 mn (5%) ■Subordinated Debt - Listed - 741 mn (0%) ■Commercial Paper - 39,246 mn (8%) Other Loans - 12,161 mn (2%) 48#50DOMESTIC CREDIT RATINGS Highest Rating among gold loan companies Short-term Rating 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 COMMERCIAL PAPER CRISIL RATINGS CRISIL A1+ ICRA LIMITED ICRA A1+ BANK LOANS ICRA LIMITED Long-term Rating SUBORDINATED DEBT Rating CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED ICRA AA+(Stable) BANK LOANS ICRA LIMITED 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 49 49#51INTERNATIONAL CREDIT RATINGS Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB(Stable) S&P GLOBAL RATINGS BB(Stable) MOODY'S INVESTORS SERVICE Ba2 (Stable) Ⓡ Muthoot Finance 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 50 00#52BREAK-UP OF TOTAL INCOME Interest Income Yearly 1,40,000 1,20,000 Ⓡ Muthoot Finance Quarterly (in millions) 1,40,000 1,09,560 1,03,285 1,20,000 1,03,686 1,00,000 1,00,000 85,644 80,000 60,000 53,641 49,077 42,703 48,130 56,546 62,021 67,570 80,000 60,000 40,000 40,000 29,577 27,940 24,816 20,000 20,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* Other Than Interest Income Yearly (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 1,751 2,000 1,584 1500 1,310 1,424 921 1000 620 543 500 397 230 0 ill 1,236 1,500 1,000 686 698 500 277 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* *Under IND-AS 51#53Ⓡ OPERATING EXPENSES TO AVERAGE LOAN ASSETS Muthoot Finance Operational efficiency over the years Yearly (%) Quarterly 8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 5.63 6.00 5.43 5.50 5.10 5.50 5.01 4.89 4.94 5.00 5.00 4.46 4.50 4.57 4.08 3.92 4.50 4.00 3.48 3.62 4.00 3.88 3.50 3.50 3.00 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* 2.50 Q1 FY 2024* Q4 FY 2023* *Under IND AS (%) 3.30 Q1 FY 2023* 42 52#54Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly (in million) Muthoot Finance Quarterly in millions) Q1 FY Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 2023* Q4 FY 2023* 2023* Q1 FY Employee Benefit Expenses 11,044 Rent 2,487 2,350 9,487 9,270 9,657 8,415 7,393 7,280 6,418 2,189 3,226 3,086 2,715 2,158 1,974 1,913 1,808 1,713 659 643 616 Advertisement & Publicity 1,581 1,197 1,190 1,163 1,056 720 531 626 311 446 467 Communication Costs 422 498 387 355 368 404 372 378 33 93 126 110 Traveling and Conveyance 365 271 210 273 240 182 186 187 96 98 83 Printing and Stationery 192 150 151 177 153 136 129 144 42 66 35 Repairs and Maintenance 505 568 276 283 280 304 362 290 140 152 127 Legal and Professional 402 283 387 260 203 154 124 93 96 140 155 65 Charges Business Promotion Expenses 206 7 369 720 481 209 201 149 68 68 38 Directors Remuneration 950 815 793 633 561 431 362 196 123 616 112 Depreciation and Amortisation 583 539 507 431 421 439 482 575 133 171 129 Expenses Others 2,440 2,098 2,075 1,677 1,260 2,970 835 1,014 589 685 938 Provision For Standard & NPA 2,647 1,223 Assets Impairment on Financial instruments 605 Total 21,782 1,270 19,533 18,754 950 957 259 316 860 753 (577) 18,744 15,670 15,571 15,319 13,006 6,480 7,066 4,858 *Under IND-AS 53#55BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Q1 FY Q4 FY Q1 FY 2024* 2023* 2023* Employee Benefit Expenses 51 49 49 52 54 47 48 49 Rent 11 12 12 12 Advertisement & Publicity 7 6 6 26 13 12 12 13 7 5 3 5 525 50 44 56 10 9 13 6 10 Communication Costs 2 2 2 2 2 3 2 3 1 2 2 Traveling and Conveyance 2 1 1 1 2 1 1 1 1 1 2 Printing and Stationery 1 1 1 1 1 1 1 1 1 1 1 Repairs and Maintenance 2 3 1 2 2 2 2 2 2 3 Legal and Professional 2 1 2 1 1 1 1 1 2 2 1 Charges Business Promotion Expenses 1 2 4 3 1 1 1 1 1 1 Directors Remuneration ☑ 3 3 2 2 2 2 Depreciation and Amortisation 3 3 3 2 3 3 3 4 2 2 3 Expenses Others 11 11 12 9 8 19 5 8 10 18 Provision For Standard & NPA 17 9 Assets Impairment on Financial instruments Total *Under IND-AS 3 7 5 5 2 2 14 11 (12) 100 100 100 100 100 100 100 100 100 100 100 54#56Ⓡ PROFITABILITY RATIOS Yearly (%) Muthoot Finance Quarterly (%) (Based on Income) Mar-23* Q1 FY Q4 FY Q1 FY Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 2024* 2023* 2023* Interest expense to Gross Income 35.08 34.56 34.92 32.00 32.51 30.50 39.92 46.31 35.15 32.85 37.52 Selling, general and administrative expenses to 30.09 24.40 25.13 29.26 32.24 28.93 34.88 41.36 27.96 31.94 33.85 Net Income Provisions & Write Offs to 0.88 1.75 1.38 1.61 0.59 5.44 8.16 6.20 4.38 3.92 (3.68) Net Income Operational expenses to Net Income 30.97 26.15 26.51 30.87 32.84 34.38 43.03 47.56 32.34 35.86 30.17 OPBDT / Net Income 69.03 73.85 73.49 69.13 67.16 65.62 56.97 52.44 67.66 64.14 69.83 Depreciation to Net Income 0.85 0.74 0.74 0.73 0.90 1.00 1.33 2.13 0.68 0.89 0.82 OPBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 50.31 66.98 63.25 69.01 PBT/ Net Income 68.18 73.11 72.75 68.40 66.26 64.63 55.63 50.31 66.98 63.25 69.01 PAT / Net Income 50.75 54.45 54.09 50.88 42.47 40.38 34.17 30.93 49.69 46.94 51.16 *Under IND-AS 55#57PROFITABILITY RATIOS Yearly Ⓡ Muthoot Finance Quarterly (%) (%) (Based on Average Loan Assets) Mar-23* Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Q1 FY Q4 FY Q1 FY 2024* 2023* 2023* Interest income to avg. loan assets 17.70 20.06 22.17 23.03 21.63 22.21 21.43 19.72 18.08 18.48 17.30 Interest expense to avg. loan assets 6.31 7.02 7.93 7.51 7.16 6.92 8.69 9.25 6.50 6.22 6.56 Net Interest Margin 11.38 13.03 14.24 15.53 14.47 15.29 12.74 10.47 11.58 12.26 10.74 Other income to avg. loan assets 0.30 0.26 0.53 0.43 0.40 0.47 0.35 0.25 0.42 0.46 0.19 Net Income Including Other 11.68 13.30 14.77 15.95 14.87 15.76 13.08 10.72 12.00 12.72 10.93 Income Selling, general and administrative 3.52 3.25 3.72 4.68 4.80 5.32 4.56 4.43 3.35 4.07 3.70 expenses to avg. loan assets Provisions and write offs to avg. 0.10 0.23 0.20 0.26 0.09 0.11 1.07 0.67 0.53 0.50 (0.40) loan assets PBDT to avg. loan assets 8.06 9.81 10.85 11.02 9.98 10.33 7.45 5.62 8.12 8.16 7.63 Depreciation to avg. loan assets 0.10 0.09 0.10 0.11 0.12 0.15 0.17 0.23 0.08 0.11 0.09 PBT to avg. loan assets 7.97 9.72 10.75 Tax to avg. loan assets 2.04 2.48 2.76 PAT to avg. loan assets 5.93 7.24 7.99 10.91 9.85 2.79 3.54 8.12 6.31 10.19 7.28 5.39 8.04 8.05 7.54 3.82 2.81 2.08 2.08 2.08 1.95 6.36 4.47 3.32 5.96 5.97 5.59 Cash Profit to avg. loan assets 6.03 7.33 8.09 8.23 6.44 6.51 4.65 3.54 6.04 6.08 5.68 *Under IND-AS 56#58PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly 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 PBT PAT 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 25,000 28,447 30,183 20,000 15,000 13,145 12,164 10,818 10,000 9,751 9,027 8,020 5,000 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Mar-23* Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* *Under IND-AS 51 57#59NETWORTH Steady capital position Share Capital and Reserves & Surplus Ⓡ Muthoot Finance (in millions) 2,40,000 2,20,000 2,11,771 2,10,619 2,00,000 1,83,250 1,80,000 1,83,445 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 40,000 20,000 37,356 42,646 50,835 0 *Under IND-AS Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Jun-22* Mar-23* Jun-23* 58 59#60RETURN 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 30 27.77 30 24.81 25 22.40 23.55 25 18.47 20 19.50 19.44 17.53 17.50 17.63 20 15 14.35 15.13 15 10 5 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20*Mar 21 Mar 22*Mar 23* 0 Q1 FY 2024* Q4 FY 2023* Q1 FY 2023* *Under IND-AS 59 59#61CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Capital Adequacy Ratio Tier-I Tier-II Ⓡ Muthoot Finance (%) Jun-23 Mar-23 Jun-22 30.03 31.77 30.62 29.27 31.01 29.73 0.76 0.76 0.89 60 00#62MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Earnings per share (*) - Basic Diluted Ⓡ Muthoot Finance Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 24.29 22.49 19.98 86.54 24.29 22.48 19.97 86.52 Jun-23 Mar-23 Jun-22 Book Value per share (*) 527.42 524.56 456.48 Market price per share (₹)** 1,239.65 979.95 976.30 Price to Earnings ratio*** 13.65 11.32 10.35 Price to Book Value ratio **Source: www.nseindia.com ***Based on trailing 12 months EPS 2.35 1.87 2.14 199 61#63CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (*In millions) Jun-23 Mar-23 Jun-22 Outside Liabilities 530,708 515,579 474,826 Cash and Cash Equivalents & Bank Balances 35,136 64,428 58,616 Tangible Networth 211,732 210,584 183,214 Capital Gearing 2.34 2.14 2.27 62 29#64Ⓡ TEAM STRENGTH Muthoot Finance Groomed human capital over the years to meet growing business requirements 28000 27000 26000 25012 24881 25000 24000 22882 23000 22781 22000 21000 20000 (No. of Employees) 27701 26716 27273 25911 26618 25554 24205 24224 23455 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Jun-22 Mar-23 Jun-23 83 63#65OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 64#66ASIA ASSET FINANCE PLC - AN OVERVIEW Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance on December 31, 2014. As on June 30,2023, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 20,102 million as on June 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 77 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. 65#67PRODUCTS 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 66 99 Ⓡ#68BRANCH NETWORK ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients 67 20 Pa#69Key Financial Parameters Particulars LKR/INR Number of branches Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) FY 2023 0.249700 Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 0.26625 0.2497 0.218977 77 75 63 75 595 590 400 590 Number of Employees Gross Loan AUM (LKR) 20,102 21,201 17,623 21,201 Capital Adequacy Ratio (%) 23 26 30 26 Total Revenue (LKR) 1,723 1,771 1,157 6,006 Total Expense (LKR) 1,642 1,731 1,077 5,647 Profit Before Tax (LKR) 81 40 80 360 Profit After Tax (LKR) 55 66 50 295 Shareholders Funds (LKR) 3,066 3,011 2,777 3,011 Total Outside Liabilities (LKR) 22,782 22,002 17,573 22,002 Total Assets (LKR) 25,848 25,013 20,350 25,013 68 80#70OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 69 69#71Ⓡ 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 June 30, 2023, it has a loan AUM of Rs. 15,007 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. 70 70#72Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 Number of branches 111 108 108 108 Number of Sales Offices 111 108 108 108 Number of Employees 418 346 222 346 Gross Loan AUM (*) 15,007 14,381 14,748 14,381 Gross Loan Assets (*) 11,641 10,871 10,783 10,871 Capital Adequacy Ratio (%) 52 52 66 58 66 Total Revenue (*) 435 392 383 1,548 Total Expense (*) 371 356 363 1,407 Profit Before Tax (*) 64 36 20 141 Profit After Tax (*) 47 26 14 104 Shareholders Funds (*) 4,622 4,575 4,485 4,575 Total Outside Liabilities (*) 9,312 7,536 8,503 7,536 Total Assets (*) 13,934 12,111 12,988 12,111 71#73Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 Disbursement (*) 1,094 848 661 2,235 Borrowings (*) 8,191 6,602 7,820 6,602 Debt Equity Ratio (%) 1.77 1.44 1.74 1.44 Yield on Advances (%) 13.34 12.79 12.58 12.70 Interest Spread (%) 4.63 4.69 4.42 4.32 NIM (%) 7.65 7.42 6.56 7.04 Cost to Income Ratio (%) 49.13 54.90 51.15 52.85 Return on Assets (ROA) (%) 1.71 0.99 0.55 1.00 Return on Equity (ROE) (%) 4.12 2.30 1.29 2.30 Stage III Loan Assets 462 436 380 436 % Stage III assets on Gross Loan Assets 3.97 4.01 3.52 4.01 Stage III ECL Provision 325 289 235 289 ECL Provision 395 358 308 358 ECL Provision as a % of Gross Loan 3.39 3.29 2.86 3.29 Assets Number of Customers 21,608 21,223 20,798 21,223 72#74Ⓡ Financial Highlights • • • . • Muthoot Homefin Muthoot Finance Disbursements of INR 1094 mm in Q1 FY 2024: AUM INR 15007 mm as on June 30, 2023: Loan Book INR 11641 mm as on June 30, 2023: Average Ticket Size in Q1 FY 2024: INR 0.93 mm 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 111 locations ROA 1.71% for Q1 FY 2024:; ROE 4.12% for Q1 FY 2024: Average cost of borrowings 8.71% for Q1 FY 2024. Capital Adequacy Ratio: 52.34%, Debt Equity Ratio: 1.77 Growth Drivers Profitability Opportunities • • Average Yield 13.34%, Interest Spread: 4.63% • Received PMAY subsidy of INR 5.80 mm in Q1 FY 2024. Increasing the leverage from 1.77 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 which indicates low risk will help in lower cost of funds. Short Term Rating: ICRA A1+ CARE A1+ Debt/Equity ratio at 1.77 times as on June 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 73#75OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 14 74#76Ⓡ Muthoot Insurance Brokers Muthoot Finance MUTHOOT INSURANCE - AN OVERVIEW HEALTH INSURANCE MIBPL became a wholly owned subsidiary of Muthoot Finance Ltd in Sep 2016. MIBPL is an unlisted private limited company holding a licence to act as Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies. During Q1 FY24, it has insured more than 904,700 lives with a First year premium collection of Rs.1,144 million under Traditional, Term and Health products.. During Q1 FY23, it has insured more than 11,74,000 lives with a First year premium collection of Rs.1,006 million under Traditional, Term and Health products.. 75#77Key Business Parameters Particulars Premium Collection (*) Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 1,477 2,033 1,311 6,505 Number of Policies 916,295 13,28,419 11,85,441 46,86,920 Key Financial Parameters (in millions) Particulars Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 Total Revenue (*) 159 206 108 678 Total Expense (*) 21 17 14 71 Profit Before Tax (*) 138 189 94 607 Profit After Tax (*) 102 153 71 464 Shareholders Funds (*) 1,690 1,588 1,194 1,588 Earnings per share (*) 136 618 94 618 16 76#78OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 77#79Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of June 2023, Muthoot Finance holds 56.97% in BML. BML was incorporated on January 1988 at Bangalore and the Company was registered with the RBI in March 2001 as a Non- Banking Finance Company. The Company was reclassified as "NBFC-MFI" by RBI effective from 11th December 2013. BML was acquired by the 'Hand in Hand' group in September 2008 to provide scalable microfinance services to entrepreneurs nurtured by 'Hand in Hand's' Self Help Group (SHG) program. The Company commenced its first lending operations at Haveri District of Karnataka in March 2009 to 3 SHGS, 22 members for INR 0.20 mn. In the last 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 June 30, 2023, BML operations are spread over 16 states and 2 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Uttarakhand,West Bengal, Haryana, Punjab, Tripura and Delhi. It has 782 branches, with 134 controlling regional offices and employs 8421 staffs. Its gross loan AUM has grown from INR 0.20 mn in March 2009 to INR 70,082 mn in June 2023 78#80Pa Muthoot Finance Key Financial Parameters Particulars Number of Branches Number of Employees Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 (in millions) FY 2023 782 768 755 768 8,421 8,022 6,596 8,022 Gross Loan AUM (*) 70,082 61,925 46,964 61,925 Gross Loan Assets (*) 55,914 47,134 39,547 47,134 Capital Adequacy Ratio (%) 22 22 25 22 Total Revenue (*) 3,603 3,315 2,097 10,379 Total Expense (*) 2,925 2,238 1,925 8,686 Profit Before Tax (*) 678 1,077 172 1,693 Profit After Tax (*) 517 815 138 1,303 Stage III Loan Assets 906 1,146 3,389 1,146 % Stage III assets on Gross Loan Assets 1.62 2.43 8.57 2.43 Stage III ECL Provision 789 840 2,288 840 ECL Provision 1,104 957 2,551 957 ECL Provision as a % of Gross Loan Assets 1.97 2.03 6.45 2.03 Shareholders Funds (*) 11,445 10,923 9,784 10,923 Total Outside Liabilities (*) 52,389 51,346 36,594 51,346 Total Assets (*) 63,834 62,269 46,378 62,269 79#81OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 00 80#82MUTHOOT 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 June, 2023 it has a total loan portfolio of Rs.4,961 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 81#83Muthoot Money Muthoot Finance Key Financial Parameters Particulars Number of branches Number of Employees (in millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 185 149 124 149 1,154 920 553 920 Gross Loan AUM (*) 4,961 3,870 1,976 3,870 Capital Adequacy Ratio(%) 19 24 47 24 Total Revenue (*) 205 173 113 564 Total Expense (*) 206 131 112 561 Profit Before Tax (*) (1) 42 1 3 Profit After Tax (*) (1) 31 1 2 Stage III Loan Assets 122 144 155 144 % Stage III assets on Gross Loan AUM 2.46 3.72 7.84 3.72 Stage III ECL Provision 46 55 68 55 ECL Provision 74 78 79 78 ECL Provision as a % of Gross Loan AUM 1.49 2.01 3.98 2.01 Shareholders Funds (*) 1,037 1,038 1,036 1,038 Total Outside Liabilities (*) 4,537 3,304 1,203 3,304 Total Assets (₹) 5,575 4,342 2,239 4,342 82#84OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth Muthoot Finance (In millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 1,157 1,141 1,103 1,141 MUTHOOT TRUSTEE PRIVATE LIMITED Networth (In millions) Q1 FY 2024 Q4 FY 2023 Q1 FY 2023 FY 2023 10 10 10 10 83#85Thank You Muthoot Family - 800 years of Business Legacy