#1Pa Muthoot Finance Financial Results Q3 FY 2021 December 2020 MUTHOOT FINANCE LIMITED#2Ⓡ Muthoot Finance SAFE HARBOUR STATEMENT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The company cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. The company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. While every effort is made to ensure that this presentation conforms with all applicable legal requirements, the company does not warrant that it is complete, comprehensive or accurate, or commit to its being updated. No part of the information provided herein is to be construed as a solicitation to make any financial investment and is provided for information only. Any person/ party intending to provide finance / invest in the shares/businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision. In no event shall the company be liable for any damages whatsoever, whether direct, incidental, indirect, consequential or special damages of any kind or including, without limitation, those resulting from loss of profit, loss of contracts, goodwill, data, information, income, expected savings or business relationships arising out of or in connection with the use of this presentation. 1#3THE GROUP Diversified business of the Group Muthoot Finance Primary Business Shareholding of holding company (%) Muthoot Finance Limited Muthoot Homefin (India) Limited Gold Loans Affordable Housing Finance Holding Company 100.00 Belstar Microfinance Limited Muthoot Money Limited Asia Asset Finance PLC Muthoot Insurance Brokers Private Limited Muthoot Asset Management Private Limited Muthoot Trustee Private Limited Microfinance Vehicle Finance 70.01 100.00 Listed Diversified NBFC in Sri Lanka 72.92 Insurance Broking 100.00 100.00 100.00 2#4THE GROUP Snapshot of performance Group Branch Network (Nos) Ⓡ Muthoot Finance 9M FY 9M FY 2021 2020 H1 FY 2021 Q1 FY 2021 YoY (%) FY 2020 5,417 5,268 5,381 5,330 3 5,330 Consolidated Gross Loan Assets* of the Group (in million) 557,995 434,357 522,863 465,008 28 468,705 Consolidated Profit of the Group (in million) 27,951 23,329 17,885 8,577 20 31,687 Contribution in the Consolidated Gross Loan Assets* of the Group Muthoot Finance (%) Subsidiaries (%) Contribution in the Consolidated Profit of the Group Muthoot Finance (%) Subsidiaries (%) *Principal amount of Loan assets 90 88 89 88 2 88 10 12 11 12 (17) 12 97 94 97 98 3 95 3 3 2 (50) 5 3#5THE GROUP Gross Loan Assets* of the Group Ⓡ Muthoot Finance (in millions) 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 9M FY 2020 YoY (%) Muthoot Finance Limited 503,907 470,162 412,957 416,106 384,982 31 Muthoot Homefin (India) Limited 18,807 19,377 19,787 19,769 20,248 (7) Belstar Microfinance Limited 28,856 26,867 25,754 26,310 22,849 26 Muthoot Money Limited 4,210 4,633 4,966 5,090 4,915 (14) Asia Asset Finance PLC 5,245 5,204 5,444 5,380 5,113 3 Less: Intra-Group Loan Assets 3,030 3,380 3,900 3,950 3,750 (19) Total 557,995 522,863 465,008 468,705 434,357 28 *Principal amount of Loan assets 4#6THE GROUP Standalone Profit of Group Companies Ⓡ Muthoot Finance (in millions) 9M FY 2021 9M FY 2020 Q3 FY Q3 FY 2021 2020 Q2 FY 2021 Q1 FY 2021 FY 2020 Muthoot Finance Limited 27,265 22,032 9,914 8,152 8,944 8,408 30,183 Muthoot Homefin (India) Limited 75 306 18 104 53 4 318 Muthoot Insurance Brokers Private 219 118 86 53 91 42 104 Limited Belstar Microfinance Limited 350 769 54 260 151 145 990 Muthoot Money Limited 33 83 43 443 (15) 11 73 (25) 27 Asia Asset Finance PLC 7 56 36 6 15 7 (7) 28 Muthoot Asset Management Private Limited 17 39 2 16 5 10 51 Muthoot Trustee Private Limited (0.04) (0.16) (0.08) (0.17) (0.01) 0.05 (0.13) 5#7Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Ⓡ Muthoot Finance (in millions) 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 Cash and cash equivalents 90,014 61,669 66,710 58,348 Bank Balance other than above 2,604 2,259 2,376 2,959 Derivative Financial Instruments 252 159 1,490 3,449 Trade Receivables Loans Investments 127 149 114 90 560,113 521,399 469,195 470,677 13,394 26,480 28,024 6,302 Other Financial Assets 3,280 2,320 2,202 2,449 Non-Financial Assets Current Tax Assets (Net) 24 39 62 94 Defered Tax Assets (Net) 690 409 269 171 Investment Property 157 159 162 156 Property, Plant and Equipment 2,573 2,425 2,386 2,427 Right to use Asset 159 154 155 168 Captial Work-In-Progress 360 329 302 287 Goodwill 300 300 300 300 Other Intangible Assets 78 83 81 85 Other Non Financial Assets 1,430 1,321 1,272 854 Total- Assets 675,555 619,654 575,100 548,816 6#8Ⓡ Muthoot Finance (in millions) Consolidated Statement of Assets and Liabilities Particulars LIABILITIES 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 Financial Liabilities Derivative Financial Instruments 3,151 1,749 Trade Payables 2,516 3,052 2,716 2,220 Debt Securities 143,550 118,129 97,596 102,660 Borrowings (other than Debt securities) 355,845 337,221 324,981 300,115 Deposits 2,554 2,596 2,720 2,560 Subordinated Liabilities 4,030 4,426 3,964 4,017 Lease Liability 166 163 160 168 Other Financial Liabilities 11,857 10,102 8,992 11,885 Non-Financial Liabilities Current Tax Liabilities (net) Provisions Deferred Tax Liabilities (net) Other Non-Financial Liabilities 1,156 1,442 2,101 808 3,552 3,518 3,801 3,712 83 86 93 151 341 369 311 507 EQUITY Equity attributable to equity owners of the company 144,933 134,994 125,891 118,292 Non-Controlling Interest 1,821 Total Liabilities and Equity 675,555 1,807 619,654 1,774 1,721 575,100 548,816 7#9Consolidated Financial Results Particulars Income Ⓡ Muthoot Finance (in millions) 9M FY 9M FY Q3 FY Q3 FY Q2 FY Q1 FY FY 2020 2021 2020 2021 2020 2021 2021 Interest Income 82,017 68,548 29,438 24,971 27,290 25,289 94,177 Service Charges 730 676 274 254 318 137 943 Sale of Services 85 150 36 46 31 18 191 Other Income 211 202 157 67 32 23 233 Income other than above 1,431 1,161 259 613 571 601 1,528 Total Income 84,474 70,737 30,164 25,951 28,242 26,068 97,072 Expenses Finance Cost 30,488 23,086 10,486 8,103 10,282 9,720 31,728 Impairment of Financial Instruments 1,721 1,664 1,009 976 281 431 1,871 Employee Benefit Expenses 8,665 8,555 2,889 3,089 2,976 2,800 12,085 Depreciation, Amortisation and 471 420 174 162 156 140 592 Impairment Other Expenses 5,667 5,687 2,101 2,094 2,104 1,462 8,192 Total Expenses 47,011 39,412 16,659 14,423 15,799 14,553 54,468 Profit before tax 37,463 31,325 13,506 11,528 12,443 11,515 42,604 Tax expense 9,512 7,996 3,439 2,918 3,136 2,938 10,917 Profit after Tax 27,951 23,329 10,067 8,610 9,307 8,577 31,687 Earnings per share -Basic (*) 69.42 57.62 25.15 21.28 23.09 21.28 78.30 Earnings per share -Diluted (*) 69.35 57.52 25.02 21.25 23.08 21.25 78.20 8#10Ⓡ MUTHOOT FINANCE: DRIVING INCLUSIVE GROWTH ○ India's largest gold financing company (by loan portfolio) Muthoot Finance Trusted pan-India brand in the gold loans sector; revolutionised India's gold banking 。 Our intervention has empowered millions of people across the social pyramid Multiple service offerings CORE SERVICE Gold Loans OTHER SERVICES Money Transfer Services Collection Services National Pension Scheme Personal Loans 6#11MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 166 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 25,000+ Team members 503,907 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day. (As of December 31, 2020) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 74% stake 22.77 3.67 73.56 В Ⓡ Muthoot Finance (%) Shareholding as on December 31, 2020 Promoters & Relatives FII, FC, MF & Others ■ Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on December 31,2020) 485,659 million 11#13BOARD OF DIRECTORS M.G. George Muthoot Chairman George Alexander Muthoot Managing Director Alexander M George Whole time Director Jacob Benjamin Koshy Independent Director Ⓡ Muthoot Finance George Thomas Muthoot Whole time Director George Jacob Muthoot Whole time Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director V. A. George Independent Director Pratip Chaudhuri Independent Director Usha Sunny Independent Director 12#14DIVIDEND PAYOUT Delivering consistent returns to stakeholders Dividend (%) * First Interim Dividend (%) Second Interim Dividend (%) Final Dividend (%) Dividend Payout Ratio (%) * On face value of 10 per equity share Ⓡ Muthoot Finance (%) FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 150 120 100 60 60 60 60 150 120 100 60 40 40 20 20 40 20 19.91 24.36 22.48 20.30 29.50 35.36 13#15GEOGRAPHICAL PRESENCE A strong presence of 4632 branches across India (%) Branches region wise State wise Branch Network 60 60 17 ■ East ■West 16 North ■South (As of December 31, 2020) Rural India accounts for about 65% of total gold stock in the country. o Large portion of the rural population has limited credit access 。 Catering to under-served rural and semi- urban markets through strong presence Jammu & Kashmir 16 Himachal Pradesh 10 Pa Muthoot Finance Punjab 189 Haryana 136 Uttarakhand 22 Chandigarh 10 Delhi 224 Rajasthan 145 Uttar Pradesh 185 Bihar 25 Gujarat 195 Madhya Pradesh 100 Jharkhand 17 West Bengal $156 Daman & Diu 01 Chhattisgarh 25 Odisha 74 Maharashtra 261 Dadra & Nagar Haveli 01 Telangana 294 Goa 26 Karnataka 519 Andhra Pradesh 413 Pondicherry 8 Tamil Nadu Kerala 972 565 Assam 33 Tripura 4 Andaman & Nicobar Islands 6 14#16Ⓡ DIGITAL INITIATIVES Muthoot Finance Digital convenience for new gen & Millennium Customer acquisition Muthoot E-TRANSFER • . • • Direct Credit Facility Loan proceeds credited to bank account NEFT/RTGS/IMPS mode of bank transfer Less cash handling at branch Instant credit to customer bank account Paytm Loan repayment option through पे PhonePe • Paytm PhonePay 982 DUC 682 POS Terminals Enables swiping of Debit cards issued by banks Swiping charges for Interest payments waived off 15#17DIGITAL INITIATIVES Online Gold Loan (OGL) • 20.3 % of gold loan customers are transacting online. Ⓡ Muthoot Finance Muthoot Online ¡Muthoot App Muthoot Qnline im Our online services has now been re-branded to Muthoot Online, from WebPay earlier. Customers can now make payment of interest and principal re-payments using Debit Card/Net Banking. Withdraw available loan amount and renew eligible loans through our Online Gold Loan (OGL) facility. To facilitate this service, we have partnered with leading Banks and online payment gateway service providers. e-Sign facility has been launched in September'17. Bank account online linking feature introduced. Muthoot Mobile App Launched in Nov' 16 has about 29.5 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.4,432 Crs payments from 1.33 Cr successful transactions so far. 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. 16#18DIGITAL 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 Ⓡ Muthoot Finance 17#19Standalone Statement of Assets and Liabilities Particulars ASSETS Financial assets Ⓡ Muthoot Finance (in millions) 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 Cash and cash equivalents 85,174 55,557 58,786 55,046 Bank Balance other than above 720 529 741 1,360 Derivative Financial Instruments 252 159 1,490 3,449 Trade Receivables 83 81 83 47 Loans 513,588 476,478 425,620 426,042 Investments 20,606 34,387 36,130 14,383 Other Financial Assets 2,204 1,208 1,136 1,057 Non-Financial Assets Defered Tax Assets (Net) 419 201 127 Property, Plant and Equipment 2,411 2,259 2,202 2,227 Captial Work-In-Progress 360 329 302 287 Other Intangible Assets 50 52 48 51 Other Non Financial Assets 1,165 1,126 1,060 648 Total Assets 627,032 572,366 527,723 504,597 18#20Ⓡ Standalone Statement of Assets and Liabilities Particulars LIABILITIES Muthoot Finance (in millions) 9M FY 2021 H1 FY 2021 Q1 FY 2021 FY 2020 Financial Liabilities Derivative Financial Instruments 3,151 1,749 Trade Payables 2,415 3,009 2,620 2,185 Debt Securities 135,162 110,791 92,808 99,619 Borrowings (other than Debt securities) 327,170 308,017 292,075 268,706 Subordinated Liabilities 2,400 2,763 2,956 2,976 Other Financial Liabilities 10,153 8,994 8,110 10,617 Non-Financial Liabilities Current Tax Liabilities (net) 1,097 1,384 2,065 782 Provisions 3,492 3,464 3,716 3,633 Deferred Tax Liabilities (net) 40 Other Non-Financial Liabilities 212 229 212 321 EQUITY Equity Share Capital Other Equity Total Liabilities 4,012 4,012 4,010 4,010 137,768 127,954 119,151 111,708 627,032 572,366 527,723 504,597 19#21REVENUE & PROFIT Standalone Financial Results Ⓡ Muthoot Finance (in millions) 9M FY 2021 9M FY 2020 YoY Growth YoY Q3 FY Q3 FY Q2 FY Q1 FY FY Growth 2021 2020 2021 2021 2020 (%) (%) INCOME Interest Income 75,395 62,138 21 27,169 22,806 19 25,066 23,160 85,644 Other than Interest 2,068 1,064 94 596 403 48 778 694 1,584 Income Total 77,463 63,202 23 27,765 23,209 20 25,844 23,854 87,228 EXPENSES Finance Cost 27,411 20,209 36 9,455 7,094 33 9,241 8,715 27,909 Employee benefit 7,060 6,987 1 2,329 2,509 (7) 2,450 2,282 9,657 Expense Administrative & Other 4,988 4,973 0 1,858 1,852 0 1,853 1,277 7,067 expenses Impairment on Financial 838 909 (8) 585 612 (4) 107 146 957 Instruments Directors Remuneration 242 214 13 81 71 14 80 80 633 Depreciation & 353 308 15 140 110 28 114 99 431 Amortisation Total 40,894 33,601 22 14,450 12,248 18 13,845 12,599 46,654 PROFIT Profit Before Tax 36,569 29,601 24 13,315 10,961 21 11,999 11,255 40,574 Profit After Tax 27,265 22,032 24 9,914 8,152 22 8,943 8,408 30,183 20#22EQUITY Strong Capital Base Networth Ⓡ Muthoot Finance Dec-20 Sep-20 Jun-20 Mar-20 (in millions) Dec-19 Equity Share Capital 4,012 4,012 4,010 4,010 4,010 Other Equity 137,768 127,954 119,151 111,708 110,004 Total 141,780 131,966 123,161 115,718 114,014 21#23ASSETS Core focus continues to be gold loan Gross Loan Assets under management* В Ⓡ Muthoot Finance Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Growth Growth QoQ (in million) (in million) (in million) (in million) (in million) YoY (%) (%) Gross loan assets under management 503,907 470,163 412,957 416,106 384,982 31 7 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 496,225 462,339 404,949 407,724 377,245 32 7 7,682 7,824 8,008 8,382 7,737 (1) (2) 22 22#24LIABILITIES Stable sources of funding * Ⓡ Muthoot Finance Secured Non-Convertible Debentures Dec-20 Sep-20 (in million) (in million) (in million) (in million) (in million) Jun-20 Mar-20 Dec-19 Growth Growth YOY QoQ (%) (%) 2,775 2,896 3,023 3,160 3,394 (Muthoot Gold Bonds) (18) (4) Secured Non-Convertible Debentures- Listed 132,758 108,190 90,110 96,840 103,919 28 23 Borrowings from Banks/Fls 194,851 177,364 156,452 145,775 129,038 51 10 External Commercial Borrowings- Senior 73,305 73,853 75,583 75,665 32,091 128 (1) secured Notes Subordinated Debt 21 21 (100) Subordinated Debt -Listed 2,411 2,775 2,969 2,969 3,406 (29) (13) Commercial Paper 49,572 47,290 49,288 35,954 46,102 5 Other Loans 9,845 9,956 11,268 11,880 7,852 25 (1) Total 465,517 422,324 388,693 372,264 325,823 43 10 *Principal amount of Borrowings 23 23#25GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* Ⓡ Muthoot Finance (in billions) 520 496 462 480 440 408 405 400 377 360 336 320 288 280 272 260 233 240 216 243 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 *Principal amount of gold Loan assets 24#26GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security. 200 Ⓡ Muthoot Finance (In tonnes) 176 180 173 169 165 163 166 155 160 149 142 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 25#27Pa 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 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 East 5 6 6 7 7 8 8 9 9 9 9 9 West 11 13 15 17 18 19 20 20 19 20 19 19 North 19 22 22 22 23 23 23 23 23 23 23 23 South 65 59 57 54 52 50 49 48 49 48 49 49 Gold Loan Assets Under Management * (in billions) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 260 216 6 2: 233 243 272 288 336 377 408 405 462 496 *Principal amount of Gold Loan Assets 26#28Pa Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * (in millions) 115 105 107.13 100.36 95 89.28 88.55 83.17 85 74.97 75 66.70 63.69 63.20 65 56.93 55.01 50.63 55 45 35 25 15 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 *Principal amount of Gold Loan Assets Sep-20 Dec-20 27 27#29HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 65 61 58 55 54 48 45 43 41 43 42 FY15 FY16 FY17 FY18 00 60 68 69 91 98 87 82 69 70 167 Pa Muthoot Finance 148 (in billions) 102 90 90 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Avg Monthly Collection ■Avg Monthly Disbursement • Strong level of disbursements and collections 28#30HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 80% 60% 40% 20% 0% FY15 ■ 1m FY16 ■ 2m FY17 ■ 3m FY18 ■4m Collections in 6 months of disbursements made in respective periods A high proportion of gold loan is repaid within first 6 months FY 19 FY 20 ■ 5m ■ 6m 29 20#31Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Gold Loan assets ( in Billions) 497 462 405 407 377 336 288 272 243 233 Quantity of Gold content in Ornaments 166 163 165 176 173 169 155 149 142 131 held as Security (Tonnes) Gold Price/gm (₹) 4,599 4,621 4,448 3,955 3,594 2,910 2,824 2,725 2,670 2,470 Lender's Perspective Market Price of Gold Content in 763 753 734 696 622 492 438 406 379 324 Ornaments (in Billions) Margin of safety on loans 35% 39% 45% 42% 39% 32% 34% 33% 36% 28% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards 916 904 881 835 746 590 526 487 455 389 making charges etc Equity of Borrower in the Gold Ornaments 46% 49% 54% 51% 49% 43% 45% 44% 47% 40% net of loans availed * Above calculations are made on overall portfolio and excludes interest accrued on loans 30#32CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 Gold Loan AUM (in Millions) 496,892 462,339 404,949 407,724 377,245 349,419 351,708 335,853 QoQ % change in Gold Loan AUM 7 14 (1) 8 (1) 5 No. of Loan Accounts 80,32,610 76,24,105 75,79,640 80,22,325 80,25,103 81,03,274 82,35,723 80,62,139 QoQ % change in no. of loan accounts 5 1 (6) (1) (2) 2 No.of Active customers QoQ % change in no. of customers 50,15,666 48,28,505 47,45,491 49,33,886 48,95,029 48,57,129 48,51,024 47,21,243 4 2 (4) 1 1 3 31#33CUSTOMER BASE Highly churning customer base (2/2) Ⓡ Muthoot Finance Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 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 438,173 395,800 185,351 352,036 400,888 367,872 414,527 380,171 9 8 29,600 27,268 4 10,547 7 8 21,806 23,608 17,549 8 9 21,226 20,023 8 388,391 409,037 160,123 8 7 19,241 387,384 360,251 8 8 23,487 23,148 346,626 376,036 347,848 8 3 7 8 29,759 33,388 10,807 25,622 25,583 720,583 644,535 364,964 702,566 802,024 799,453 845,482 779,363 17 No. of customers % of customers 14 O/s Loan Amount (in Millions) 46,175 13 43,390 8 20,576 14 16 42,368 49,661 16 17 41,281 48,079 42,75132#34YIELD ON LOAN ASSETS AND NIM Yearly 26.00 (%) Quarterly Ⓡ Muthoot Finance (%) 26.00 24.00 23.03 24.00 21.66 21.43 22.21 21.63 22.31 24.58 22.71 22.97 22.35 22.30 22.00 22.00 19.72 19.31 20.00 20.00 20.27 18.00 18.00 16.93 15.52 16.00 16.00 15.29 14.47 14.54 15.50 14.34 13.94 14.19 14.00 14.00 12.74 11.38 12.00 12.00 10.84 10.47 9.52 10.00 10.00 10.27 8.69 8.37 8.41 8.11 9.42 9.79 7.77 9.25 6.92 7.16 7.51 7.65 8.00 8.00 7.47 6.00 6.00 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* *Under IND -AS 2021* 2020* 2021* 2021* 2021* 2020* Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 33#35INTEREST SPREAD Yearly 26.00 (%) Quarterly Ⓡ Muthoot Finance (%) 26.00 24.58 24.00 23.03 24.00 21.66 21.43 22.21 22.71 22.97 21.63 22.35 22.30 22.29 22.00 22.00 20.27 19.31 19.72 20.00 20.00 18.00 18.00 16.00 16.00 15.39 14.04 13.85 13.45 13.68 14.00 14.00 13.50 13.27 13.81 12.42 12.63 11.88 12.00 12.00 10.93 10.80 10.900.53 10.00 9.24 9.00 10.00 9.19 9.03 9.08 9.16 8.39 8.38 8.92 8.76 8.99 8.45 8.79 8.00 8.00 6.00 6.00 Q3 FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* 2021* Q3 FY 2020* Q2 FY 2021* Q1 FY 2021* 9M FY 2021* 9M FY 2020* *Under IND-AS Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread 34#36RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 (%) Quarterly Ⓡ Muthoot Finance 10.00 9.00 8.11 9.00 8.79 8.00 8.11 8.14 8.10 8.06 8.14 8.00 7.00 6.31 6.36 7.00 6.00 6.00 5.00 5.00 4.05 4.47 4.00 4.00 3.22 3.32 3.03 3.00 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19* Mar-20* Q3 FY 2021* Q3 FY 2020* Q2 FY 2021* Q1 FY 9M FY 9M FY 2021* 2021* 2020* *Under IND-AS 55 35 (%)#37IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Stage III Loan Assets 6,568 5,920 10,553 8,992 9,769 % Stage III Assets on Gross Loan Assets ECL Provision on Gross Loan Assets 1.30 1.26 2.56 2.16 2.54 6,208 5,636 5,538 5,427 7,178 ECL Provision as % of Gross Loan Assets Excess Provision outstanding in books Staging Criteria 1.23 1.20 1.34 1.30 1.86 2,954 2,954 2,954 2,954 1,191 Stage Stage 1 Stage 2 Stage 3 PD-Probability of default Bad Debts Description 0-30 days past due > 30 to <= 90 past due > 90 days past due LGD-Loss given default Provision Mechanism PD X LGD x Stage 1 Asset PD x LGD x Stage 2 Asset LGD x EAD of Stage 3 Asset EAD-Exposure at Default (in millions) Bad Debts Written Off % of Bad Debts written off to Gross Loan Assets Q3 FY 2021 Q3 FY 2020 Q2 FY 2021 Q1 FY 2021 9M FY 2021 9M FY 2020 FY 2020 27 329 10 28 65 495 599 0.005 0.09 0.002 0.01 0.01 0.13 0.14 36#38LIABILITY MIX Maintaining a diversified funding profile* (%) 1 10 16 2 42 28 *Principal amount of Borrowings (As of December 31, 2020) Ⓡ Muthoot Finance Secured Non-Convertible Debentures (Muthoot Gold Bonds) - ₹2,775 mn (1%) 132,758 mn (28%) Secured Non-Convertible Debentures - Listed - - Borrowings from Banks/Fis - 194,851 mn (42%) External Commercial Borrowings- Senior secured Notes - 73,305 mn (16%) Subordinated Debt - 0 mn (0%) ■Subordinated Debt - Listed - 2,411 mn (1%) Commercial Paper - 49,572 mn (10%) Other Loans - 9,845 mn (2%) 37 37#39DOMESTIC 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 ICRA A1+ Indicates Ⓡ Muthoot Finance Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk SUBORDINATED DEBT CRISIL RATINGS ICRA LIMITED NON CONVERTIBLE DEBENTURE Rating CRISIL AA/Positive ICRA AA (Stable) CRISIL AA/Positive ICRA AA (Stable) CRISIL RATINGS ICRA LIMITED 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 38#40Ⓡ INTERNATIONAL CREDIT RATINGS Muthoot Finance Long-term Rating Rating Agencies Rating Indicates FITCH RATINGS BB (Stable) S&P GLOBAL RATINGS BB (Negative) MOODY'S INVESTORS SERVICE Ba2 (Stable) An elevated vulnerability to default risk, particularly in the event of adverse change in business or economic condition over time, however, business or financial flexibility exists that supports the servicing of financial commitments. Less vulnerable in the near-term but faces major ongoing uncertainities to adverse business, financial and economic conditions. Obiligations are judged to be speculative and are subject to substantial credit risk. The modifier 2 indicates a midrange ranking 39 39#41BREAK-UP OF TOTAL INCOME Interest Income Yearly Quarterly Ⓡ Muthoot Finance (in millions) 100,000 100,000 85,644 75,395 80,000 80,000 67,570 62,138 62,021 56,546 60,000 60,000 53,641 49,077 42,703 48,130 40,000 40,000 27,168 22,806 25,066 23,160 20,000 20,000 0 Q3 FY 2021* Q3 FY 2020* Q2 FY 2021* Q1 FY 2021* 9M FY 2021* 9M FY 2020* Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Other Than Interest Income Yearly Quarterly (in millions) 3000 3,000 2500 2,500 2,068 2000 2,000 1,584 1500 1,310 1,500 1,236 1,064 921 1000 1,000 620 778 694 596 543 500 397 500 403 230 0 0 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* 2021* 2020* 2021* 2021* 2021* 9M FY 2020* *Under IND-AS 40#42Ⓡ OPERATING 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 5.45 5.10 5.01 4.89 4.94 5.00 5.00 4.85 4.46 4.50 4.50 4.08 4.08 3.99 4.00 4.00 3.89 3.65 3.50 3.50 3.00 3.00 2.50 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 2021* 2020* 2021* 2021* 2021* 9M FY 2020* *Under IND AS 41#43BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Employee Benefit Expenses Rent 2,158 1,974 1,913 1,808 1,713 1,650 1,542 Quarterly Q3 FY: Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021 2020* 2021* 2021* 2021 2020* 9,657 8,415 7,393 7,280 6,418 6,304 5,917 5,453 2,329 2,509 2,450 2,282 7,060 6,987 1,309 560 548 592 429 1,581 1,607 (in million) in millions) Advertisement & 1,163 1,056 720 531 626 651 702 579 264 442 404 142 810 869 Publicity Communication Costs 355 368 404 372 378 371 364 243 113 85 101 75 289 258 Traveling and 273 240 182 186 187 212 190 175 58 73 49 32 139 210 Conveyance Printing and Stationery 177 153 136 129 144 160 185 168 49 49 40 40 22 111 123 Repairs and 283 280 304 362 290 281 272 256 84 73 73 76 58 218 220 Maintenance Legal and Professional 260 203 154 124 93 189 216 86 127 Charges 60 60 67 122 316 199 Business Promotion 720 481 209 201 149 140 279 332 41 145 129 115 285 543 Expenses Directors Remuneration 633 561 431 362 196 192 192 192 81 71 80 80 242 214 Depreciation and 431 421 439 482 575 841 475 454 140 110 114 99 353 308 Amortisation Expenses Others 1,677 1,260 2,970 835 1,014 733 731 550 562 386 395 282 1,239 944 Provision For Standard 2,647 1,223 180 214 765 & NPA Assets Impairment on 957 259 316 585 612 107 146 838 909 Financial instruments Total 18,744 15,670 15,571 15,319 13,006 11,904 11,279 10,562 4,994 5,154 4,604 3,884 13,482 13,392 *Under IND-AS 42#44Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly Muthoot Finance (%) Quarterly (%) Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2021 2020* 2021* 2021 2021* 2020* Employee Benefit 52 54 47 48 49 53 52 Expenses 52 52 47 49 53 59 52 52 Rent 12 13 12 12 13 14 14 12 11 11 13 11 12 Advertisement & 6 7 5 3 5 5 6 50 5 6 9 4 6 226 12 Publicity Communication Costs 2 2 3 2 3 3 2 2 2 2 2 2 2 Traveling and 1 2 1 1 1 2 2 2 1 1 1 1 1 2 Conveyance Printing and Stationery 1 1 1 1 1 1 2 2 1 1 1 1 1 1 Repairs and 2 2 2 2 2 2 2 2 2 1 2 1 2 2 Maintenance Legal and Professional 1 1 1 1 1 2 2 1 3 1 1 3 2 1 Charges Business Promotion 3 1 1 1 1 2 3 1 3 3 3 2 4 Expenses Directors Remuneration 3 4 3 2 2 2 2 2 1 2 2 2 2 Depreciation and 2 3 3 3 7 4 4 3. 2 2 3 3 2 Amortisation Expenses Others 9 8 19 LO 5 8 CO 6 00 6 5 11 7 9 7 9 7 Provision For Standard 17 9 2 2 7 . I & NPA Assets Impairment on Financial 5 2 2 12 12 2 4 CO 6 7 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 43#45Ⓡ PROFITABILITY RATIOS Yearly (%) Quarterly Muthoot Finance (%) (Based on Income) Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Q3 FY Q3 FY Q2 FY Q1 FY 19M FY 19M FY 2021 2020* 2021* 2021* 2021* : 2020* Interest expense to Gross Income 32.00 32.51 30.50 39.92 46.31 48.71 53.08 52.34 34.06 30.57 35.76 36.53:35.39 31.98 Selling, general and administrative expenses 29.26 32.24 28.93 34.88 41.36 48.26 44.66 35.89 to Net Income 23.32 27.50 26.40 24.04:24.56 28.32 Provisions & Write Offs to Net Income 1.61 0.59 5.44 8.16 6.20 1.67 1.89 3.49 3.20 3.80 0.64 0.96 1.68 2.12 Operational expenses to Net Income 30.87 32.84 34.38 43.03 47.56 49.93 46.55 39.37 26.51 31.30 27.04 25.00 26.23 30.43 OPBDT Net Income 69.13 67.16 65.62 56.97 52.44 50.06 53.45 60.62 73.49 68.70 72.96 75.00 73.77 69.57 Depreciation to Net Income 0.73 0.90 1.00 1.33 2.13 3.72 2.03 1.76 0.77 0.68 0.69 0.65 0.71 0.72 OPBT/Net Income 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 72.72 68.02 72.27 74.34 73.06 68.85 PBT Net Income 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 72.72 68.02 72.27 74.34 73.06 68.85 PAT Net Income 50.88 42.47 40.38 34.17 30.93 30.23 33.60 39.11 *Under IND-AS 54.15 50.59 53.86 55.54:54.47 51.24 44#46PROFITABILITY RATIOS Ⓡ Muthoot Finance Yearly Quarterly (%) (Based on Average Loan Assets) Interest income to avg. loan assets Interest expense to avg. loan assets Net Interest Margin Mar- Mar- 20* 19* Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13: Q3 FY Q3 FY 2021* 2020* Q2 FY Q1 FY9M FY:9M FY 2021 2021* 2021* 2020* 23.03 21.63 22.21 21.43 19.72 19.30 20.27 21.66: 22.31 24.58 22.71 22.35 22.30 22.97 7.51 7.16 6.92 8.69 9.25 9.52 10.84 11.38: 7.77 7.65 8.37 8.41 8.11 7.47 15.52 14.47 15.29 12.74 10.47 9.78 9.42 10.27 14.54 16.93 14.34 13.94 14.19:15.50 Other income to avg. loan assets 0.43 0.40 0.47 0.35 0.25 0.25 0.16 0.09 0.49 0.43 0.71 0.67 0.61 0.39 Net Income Including Other Income 15.95 14.87 15.76 13.09 10.72 10.03 9.59 10.37 15.03 17.37 15.04 14.61 14.80 15.89 Selling, general and administrative expenses to 4.68 4.81 avg. loan assets 5.32 4.56 4.43 4.84 4.28 3.72 3.51 4.79 3.98 3.51 3.64 4.51 Provisions and write offs to avg. loan assets 0.26 0.08 0.11 1.07 0.67 0.17 0.18 0.36 0.48 0.66 0.10 0.14 0.25 0.34 PBDT to avg. loan assets 11.01 9.98 10.33 7.45 5.62 5.02 5.12 6.28 11.04 11.92 10.96 10.96 10.91 11.05 Depreciation to avg. loan assets 0.11 0.12 0.15 0.17 0.23 0.37 0.20 0.18 0.11 0.11 0.09 0.10 0.10 0.11 PBT to avg. loan assets Tax to avg. loan assets 10.90 9.85 2.79 3.54 3.82 10.19 7.28 5.39 4.65 2.81 2.08 PAT to avg. loan assets Cash Profit to avg. loan assets 8.11 6.31 6.36 4.47 3.32 4.93 6.10 10.93 11.81 10.87 10.86 10.81 10.94 1.62 1.71 2.05 2.79 3.03 2.77 2.75 2.75 2.80 3.03 3.22 4.05 8.14 8.79 8.10 8.11 8.06 8.14 8.22 6.44 6.51 4.65 3.54 3.40 3.42 4.24 8.25 8.90 8.19 8.21 8.16 8.25 45 *Under IND-AS#47PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT Quarterly PBT PAT 45,000 40,574 45,000 40,000 40,000 35,000 36,569 30,768 30,183 35,000 30,000 28,447 29,601 30,000 25,000 27,265 25,000 19,210 20,000 22,032 19,721 15,114 20,000 17,776 15,000 11,936 13,168 10,279 15,000 10,042 13,315 10,000 11,798 11,999 7,801 10.961 11,255 9,914 10,000 8,943 8,408 8,096 8,152 5,000 6,705 5,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Q3 FY 2021* Q3 FY 2020 Q2 FY 2021* Q1 FY 2021* 9M FY 2021* 9M FY 2020* *Under IND-AS 46#48NETWORTH Steady capital position Share Capital and Reserves & Surplus Ⓡ Muthoot Finance (in millions) 150,000 141,780 140,000 131,966 130,000 120,000 115,718 123,161 114,014 110,000 97,928 100,000 90,000 80,000 78,120 65,164 70,000 60,000 56,192 50,835 50,000 42,646 37,356 40,000 30,000 20,000 10,000 0 Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Dec-19* Mar-20* Jun-20* Sep-20* Dec-20* *Under IND-AS 47#49RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly 55 50 45 40 233 35 30.15 30 22510 24.81 22.40 19.50 19.44 14.35 15.13 (%) В Ⓡ Muthoot Finance Quarterly (%) 55 50 45 40 35 28.97 29.64 28.05 28.24 27.72 28.26 30 28.16 25 20 15 10 5 0 Q3 FY 2021* Q3 FY 2020* Q2 FY 2021* Q1 FY 2021* 9M FY 2021* 9M FY 2020* Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20* *Under IND-AS 48#50CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Ⓡ Muthoot Finance (%) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Capital Adequacy Ratio 26.38 25.73 26.30 25.47 26.51 Tier-I 25.28 24.62 25.20 24.30 26.18 Tier-ll 1.10 1.11 1.10 1.17 0.33 49 49#51MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Ⓡ Muthoot Finance Q3 FY 2021 Q3 FY 2020 Q2 FY 2021 Q1 FY 2021 9M FY 2021 9M FY 2020 FY 2020 Earnings per share (*) - Basic 24.72 20.34 22.30 20.96 67.98 54.98 75.31 - Diluted 24.69 20.32 22.28 20.94 67.91 54.89 75.21 Book Value per share (*) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 353.28 328.82 306.99 288.43 284.40 Market price per share (*)* ** 1,210.55 1,132.10 1,086.05 613.15 761.45 Price to Earnings ratio* *** 13.71 13.49 13.08 8.14 11.29 Price to Book Value ratio 3.43 3.44 3.54 2.13 2.68 **Source: www.nseindia.com ***Based on trailing 12 months EPS 50 50#52CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (In millions) Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Outside Liabilities 485,252 440,401 404,561 388,878 339,678 Cash & Bank Balances & Investment 95,502 79,465 84,769 59,253 47,869 in MF liquid Funds Tangible Networth 141,731 131,914 123,113 115,668 113,957 Capital Gearing 2.75 2.74 2.60 2.85 2.56 51#53Ⓡ TEAM STRENGTH Muthoot Finance Groomed human capital over the years to meet growing business requirements 27000 26000 25012 24881 25000 24000 22882 23000 22781 22000 21000 20000 (No. of Employees) 25987 25893 25554 25430 25149 24205 24224 23455 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 52 52#54OUR SUBSIDIARY Ⓡ Muthoot Finance ASIA ASSET FINANCE PLC The unconventional finance company 53#55Ⓡ ASIA ASSET FINANCE PLC - AN OVERVIEW A ASIA ASSET FINANCE PLC Muthoot Finance Asia Asset Finance PLC, (AAF) Colombo, Sri Lanka became a foreign subsidiary of Muthoot Finance on December 31, 2014. As on December 31,2020, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 13,309 million as on December 31, 2020 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 40 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 49 years, evolving to serve the growing needs of people of Sri Lanka. 54#56ASIA ASSET PRODUCTS FINANCE PLC o Fixed Deposits ○ Leasing o Business Loan o Personal Loan o Group Personal Loan o Corporate Loans ○ Mortgage Loans 。 Factoring ○ Short Term Loans ○ Micro Finance o Loan against Gold Jewellery Ⓡ Muthoot Finance 55#57BRANCH NETWORK ASIA ASSET FINANCE PLC finance company Ⓡ Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients Chankanai Jaffna Kilinochichi Vavuniya Kegalle Ragala City office Chilaw Wennappuwa Negombo Nawalapitiya Moratuwa Gampola Galle Kalutara (SC) Mathugama Chunnakam Nelliyadi Point Pedro Chavakachcheri Mullaitivu Puthukkudiyiruppu Beruwala Oddusuddan Sammanthurai Valaichcenai Digana Chenkaladi Batticaloa Matale Kurunegala Gampaha Chavakachcheri Colombo Hatton Matara Pundoloya Thalawakele Kalmunai Akkaraipattu 56#58ASIA ASSET Ⓡ FINANCE PLC Muthoot Finance Key Financial Parameters Particulars (LKR in millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 INR/LKR 0.39408 0.39286 0.39408 0.40086 0.40386 0.388758 Number of branches 40 28 40 30 29 29 Number of Employees 423 531 423 424 461 495 Loan AUM (LKR) 13,309 13,014 13,309 12,982 13,481 13,839 Capital Adequacy Ratio (%) 16 15 16 17 16 17 Total Revenue (LKR) 2,167 2,515 710 760 697 3,332 Total Expense (LKR) 2,122 2,410 686 722 714 3,239 Profit Before Tax (LKR) 45 105 24 38 (17) 93 Profit After Tax (LKR) 18 90 16 18 (17) 70 Shareholders Funds (LKR) 2,189 2,194 2,189 2,173 2,155 2,172 Total Outside Liabilities 13,143 12,532 13,143 12,476 12,501 12,983 (LKR) Total Assets (LKR) 15,332 14,726 15,332 14,649 14,656 15,155 57#59OUR SUBSIDIARY Da Muthoot Homefin Ⓡ Muthoot Finance 58 598#60Ⓡ MUTHOOT HOMEFIN - AN OVERVIEW Muthoot Homefin Muthoot Finance பிம், Muthoot Homefin (India) Limited is a Housing Finance Company registered with The National Housing Bank (NHB). It became a wholly owned subsidiary of Muthoot Finance Ltd in Aug'17. MHIL focuses on extending affordable housing finance and targets customers in Economically Weaker Sections (EWS) and Lower Income Groups (LIG) in Tier II & Tier III locations. It operates on a 'Hub and Spoke' model, with the centralised processing at Corporate Office at Mumbai. MHIL has operations in Kerala, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chandigarh, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Punjab, Delhi, Tamil Nadu, Chattisgarh and Pondicherry. As on December 31, 2020, it has a loan portfolio of Rs. 18,807 million. ICRA and CARE assigned Short Term Debt Rating of ICRA A1+ and CARE A1+ respectively for its Commercial Paper. 59#61Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 Number of branches 108 107 108 108 107 107 Number of Sales Offices 108 107 108 107 107 107 Number of Employees 281 438 281 280 344 412 Loan AUM () 18,807 20,248 18,807 19,377 19,787 19,769 Capital Adequacy Ratio (%) 46 50 46 48 47 52 Total Revenue (*) 1,667 2,401 508 571 588 2,876 Total Expense (*) 1,565 1,983 483 500 582 2,452 Profit Before Tax () 102 418 25 71 6 424 Profit After Tax (*) 75 306 18 53 4 318 Shareholders Funds (*) 4,336 4,248 4,336 4,318 4,264 4,260 Total Outside Liabilities (*) 13,556 15,286 13,556 13,713 15,062 14,590 Total Assets (₹) 17,892 19,534 17,892 18,031 19,326 18,850 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance (in millions) Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 Disbursement (R) 856 3,564 126 116 613 4,127 Borrowings () 13,077 14,913 13,077 13,312 14,712 14,185 Debt Equity Ratio (%) 3.01 3.50 3.01 3.08 3.44 3.33 Yield on Advances (%) 12.48 12.36 11.61 12.74 13.04 11.77 Interest Spread (%) 3.30 2.90 2.68 3.52 3.65 2.29 NIM (%) 4.94 5.19 4.27 4.97 5.52 4.40 Cost to Income Ratio (%) 36.56 37.55 35.79 30.15 43.47 36.06 Return on Assets (ROA) (%) 0.59 2.03 0.44 1.26 0.09 1.65 Return on Equity (ROE) (%) 2.33 9.97 1.66 4.96 0.38 7.75 Stage III Loan Assets 293 335 293 331 337 338 % Stage III assets on Gross Loan 1.56 1.65 1.56 1.71 1.70 1.71 Assets Stage III ECL Provision 111 270 111 111 111 111 ECL Provision 385 341 385 348 309 179 ECL Provision as a % of Gross Loan 2.05 1.68 2.05 1.80 1.56 0.91 Assets Number of Customers 23,418 24,678 23,418 23,812 24,088 24,390 61#63Financial Highlights • . • • Ⓡ Muthoot Homefin Muthoot Finance Disbursements in 9M FY 2021: Rs 856 mn. AUM as on Dec 31, 2020: Rs. 18,807 mn, Loan Book as on Dec 31, 2020: Rs 16,709 mn. Average Ticket Size in 9M FY 2021: Rs. 0.95 mn Business Presence: Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Kerala, Andhra Pradesh, Telangana, Karnataka, Uttar Pradesh, Haryana, Chandigarh, Delhi, Punjab, Tamil Nadu, Chattisgarh and Pondicherry Presence in 108 locations ROA for 9M FY 2021: 0.59%, ROE for 9M FY 2021: 2.33% Average cost of borrowings of 9.18% for 9M FY 2021. Capital Adequacy Ratio: 46.46%, Debt Equity Ratio: 3.01 Average Yield: 12.48%, Interest Spread: 3.30% . Received PMAY subsidy of INR 744 mn for 3658 cases in 9M FY 2021. Increasing the leverage from 3.01x currently will help to improve the ROE Higher credit rating will help in raising funds at competitive rates. Growth Drivers Profitability Opportunities • • 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 (Positive) which indicates low risk will help in lower cost of funds. Short Term Rating: ICRA A1+ / CARE A1+ Debt/Equity ratio at 3.01 times as on Dec 31, 2020, indicates ample scope for financial leverage to increase ROE Infrastructure sharing with the parent (Muthoot Finance) helps reduce overall Opex Our focus segment, "affordable housing finance" is the centered around the Government initiative of "Housing for All" by 2022 Government promoted schemes such as PMAY-CLSS will benefit the end consumers. 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 62#64OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 63#65Muthoot 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 Q3 FY21, it has insured more than 10,31,000 lives with a First year premium collection of Rs.734 million During Q3 FY20, it has insured more than 835,000 lives with a First year premium collection of Rs.580 million under Traditional, Term and Health products.. 19 64 Ⓡ#66Key Business Parameters Particulars Premium Collection (*) Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 2,575 2,168 1,073 1,059 443 3,232 Number of Policies 19,98,871 20,11,505 10,40,520 815,930 142,421 28,06,336 Key Financial Parameters (in millions) Particulars 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 Total Revenue (*) 325 191 129 132 64 237 Total Expense (*) 32 32 13 10 9 97 Profit Before Tax (*) 293 158 116 122 55 141 Profit After Tax (7) 219 118 86 91 42 104 Shareholders Funds (R) 750 544 750 663 572 531 Earnings per share (*) 292 157 115 122 56 139 65#67OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 66#68Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of December 2020, Muthoot Finance holds 70.01% 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 ten 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 December 31, 2020, BML operations are spread over 17 states and 1 UT (Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Kerala, Odisha, Pondicherry, Chattisgarh, Gujarat, Rajasthan, Bihar, Uttar Pradesh, Haryana, Punjab, Jharkhand, Uttarakhand, West Bengal and Tripura. It has 619 branches, with 117 controlling regional offices and employs 4365 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 28,856 mn in December 2020 67#69Key Financial Parameters Particulars Ⓡ Muthoot Finance (in millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 Number of Branches 619 573 619 618 603 603 Number of Employees 4,365 4,269 4,365 4,413 4,197 4,425 Gross Loan AUM (*) 28,856 22,849 28,856 26,867 25,754 26,310 Capital Adequacy Ratio (%) 24 27 24 27 26 26 Total Revenue (*) 3,919 3,681 1,454 1,320 1,171 5,007 Total Expense (*) 3,479 2,654 1,398 1,124 983 3,675 Profit Before Tax (*) 440 1,027 56 196 188 1,332 Profit After Tax (*) 350 769 54 151 145 990 Stage III Loan Assets 194 258 194 167 287 240 % Stage III assets on Gross Loan 0.67 1.13 0.67 0.62 1.11 0.91 Assets Stage III ECL Provision 158 230 158 153 215 216 ECL Provision 677 347 677 462 418 369 ECL Provision as a % of Gross Loan 2.35 1.52 2.35 1.72 1.62 1.40 Assets Shareholders Funds (7) 5,293 4,748 5,293 5,244 5,131 4,978 Total Outside Liabilities (*) 25,355 20,022 25,355 24,300 23,454 20,210 Total Assets (7) 30,648 24,770 30,648 29,544 28,585 25,188 68#70OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 69#71MUTHOOT MONEY-AN OVERVIEW Muthoot Money Muthoot Finance Muthoot Money Ltd (MML), became a wholly owned subsidiary of Muthoot Finance Ltd in October 2018. MML is a RBI registered Non- Banking Finance Company engaged mainly in extending loans for vehicles. The operations are now centered in Hyderabad. Recently, Company has started extending loans for Commercial Vehicles and Equipments. As on 31st December, 2020 it has a total loan portfolio of Rs.4,210 million. CRISIL assigned Long Term Debt Rating of CRISIL AA-/Positive for its bank limits. 70 10#72Key Financial Parameters Particulars Number of branches Muthoot Money Muthoot Finance (in millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 18 24 18 18 18 24 225 297 225 234 245 304 Number of Employees Gross Loan AUM (*) 4,210 4,915 4,210 4,633 4,966 5,090 Capital Adequacy Ratio (%) 25 21 25 22 21 20 Total Revenue (*) 541 492 159 185 198 704 Total Expense (*) 508 453 178 138 193 665 Profit Before Tax (7) 32 39 (20) 47 5 39 Profit After Tax (*) 33 43 (15) 73 (25) 27 Stage III Loan Assets 389 122 389 237 180 249 % Stage III assets on Gross Loan Assets 9.24 2.45 9.24 5.12 3.62 4.89 Stage III ECL Provision 100 30 100 62 47 65 ECL Provision 247 94 247 190 192 143 ECL Provision as a % of Gross Loan 5.87 1.88 5.87 4.10 3.87 2.81 Assets Shareholders Funds (*) 1,095 1,078 1,095 1,110 1,037 1,062 Total Outside Liabilities (*) 3,402 4,086 3,402 3,701 4,161 4,323 Total Assets (7) 4,497 5,164 4,497 4,811 5,198 5,385 71#73OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth Ⓡ Muthoot Finance (In millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 1,071 1,041 1,071 1,068 1,063 1,053 MUTHOOT TRUSTEE PRIVATE LIMITED (In millions) 9M FY 2021 9M FY 2020 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 FY 2020 Networth 10 10 10 10 10 10 72#74Ba Muthoot Finance REGISTERED OFFICE 2nd Floor, Muthoot Chambers Opposite Saritha Theatre Complex Banerji Road, Kochi Kerala 682 018. India - Tel: (91484) 2394712 Fax: (91484) 2396506 CIN: L65910KL1997PLC011300 RBI Reg No: N 16.00167 EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com