#1В Muthoot Finance India's No.1 Most Trusted Financial Services Brand Power of Trust TRA's Brand Trust Report Financial Results Q4 FY 2022 March 2022 Muthoot Family - 800 years of Business Legacy 0000 Great Place To Work® Certified APR 2021-MAR 2022 INDIA#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 60.69 100.00 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) Consolidated Gross Loan Assets* of the Group (in million) Consolidated Profit of the Group (in million) 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 Ⓡ Muthoot Finance YOY FY 2022 FY 2021 (%) 5,581 5,451 2 644,939 582,802 11 40,313 38,189 6 160 90 90 10 10 98 98 97 2 3 3#5THE GROUP Gross Loan Assets* of the Group Ⓡ Muthoot Finance (in millions) Mar-22 Mar-21 YoY (%) Muthoot Finance Limited 580,532 526,223 10 Muthoot Homefin (India) Limited 14,699 17,042 (14) Belstar Microfinance Limited 43,658 32,999 32 Muthoot Money Limited 2,071 3,668 (44) Asia Asset Finance PLC 4,459 5,150 (13) Less: Intra-Group Loan Assets 480 2,280 (79) Total 644,939 582,802 11 *Principal amount of Loan assets 4#6THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance FY 2022 FY 2021 39,543 37,222 Muthoot Homefin (India) Limited 84 126 Muthoot Insurance Brokers Private Limited 276 316 Belstar Microfinance Limited 451 467 Muthoot Money Limited Asia Asset Finance PLC (66) 37 43 18 Muthoot Asset Management Private Limited 23 23 19 Muthoot Trustee Private Limited 0.17 (0.10) (in millions) LO 5#7Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Cash and cash equivalents Bank Balance other than above Derivative Financial Instruments Trade Receivables Loans Investments Other Financial Assets Non-Financial Assets Mar-22 Ⓡ Muthoot Finance (in millions) Mar-21 100,358 77,775 2,791 2,435 605 154 70 98 645,276 588,085 5,233 2,807 8,085 4,383 Current Tax Assets (Net) 110 94 Defered Tax Assets (Net) 1,090 593 Investment Property 93 139 Property, Plant and Equipment 2,817 2,575 Right to use Asset 148 170 Captial Work-In-Progress 523 385 Goodwill 300 300 Other Intangible Assets 59 86 Intangible assets under development 1 Other Non Financial Assets 883 1,056 Total-Assets 763,165 686,414#8Consolidated Statement of Assets and Liabilities Particulars LIABILITIES Financial Liabilities Mar-22 Ⓡ Muthoot Finance (in millions) Mar-21 Derivative Financial Instruments 4,798 3,305 Trade Payables 3,805 2,112 Other Payables 3 2 Debt Securities 131,740 146,670 Borrowings(other than Debt securities) 408,553 351,010 Deposits 2,580 Subordinated Liabilities 2,997 3,707 Lease Liability 160 178 Other Financial Liabilities 13,323 13,598 Non-Financial Liabilities Current Tax Liabilities(net) 1,418 1,303 Provisions Deferred Tax Liabilities(net) Other Non-Financial Liabilities EQUITY Equity attributable to equity owners of the company 187,857 155,750 Non-Controlling Interest 3,522 1,846 Total Liabilities and Equity 763,165 686,414 7 3,680 3,695 166 142 1,140 517#9Ⓡ Consolidated Financial Results Particulars Income Interest Income Muthoot Finance (in millions) YOY Q4 FY Q3 FY Q2 FY Q1 FY FY 2022 FY 2021 (%) 2022 2022 2022 2022 119,252 112,103 6 29,169 30,867 30,033 29,183 Service Charges 1,121 986 14 379 332 255 155 Sale of Services 140 120 17 33 48 31 27 Other Income 526 356 48 200 123 126 76 Income other than above 1,337 2,136 (37) 631 310 203 193 Total Income 122,375 115,702 6 30,411 31,681 30,648 29,634 Expenses Finance Cost 42,559 40,999 4 10,325 10,606 10,772 10,856 Impairment of Financial Instruments 3,835 2,552 50 146 1,685 1,186 818 Net Loss on derecognition of financial 35 32 9 35 (120) 120 instruments Employee Benefit Expenses 12,395 11,893 4 3,710 3,080 2,834 2,771 Depreciation, Amortisation and 700 674 4 208 182 158 152 Impairment Other Expenses 8,749 8,237 6 2,469 2,158 2,302 1,819 Total Expenses 68,273 64,387 6 16,893 17,711 17,132 16,536 Profit before tax 54,102 51,315 5 13,518 13,970 13,516 13,098 Tax expense 13,789 13,126 5 3,456 3,534 3,487 3,312 Profit after Tax 40,313 38,189 6 10,062 10,436 10,029 9,786 Earnings per share -Basic (*) 100.10 94.84 6 24.85 25.91 24.98 24.37 Earnings per share -Diluted (₹) 100.05 94.76 6 24.84 25.90 24.97 24.35 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 OTHER SERVICES Gold Loans Money Transfer Services Collection Services Business loans Personal Loans 9#11MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 187 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 26,000+ Team members * 580,532 mn Loan Assets Under Management 100,000+ Retail investor base across debenture and subordinated debt portfolio 200,000+ Customers served every day (As of March 31, 2022) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 73% stake 22.89 3.74 73.37 Ⓡ Muthoot Finance (%) Shareholding as on March 31, 2022 Promoter & Promoter group ■FII, FC, MF & Others Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on March 31,2022) 534,170 million 11 11#13BOARD OF DIRECTORS George Jacob Muthoot Chairman George Alexander Muthoot Managing Director George Thomas Muthoot Wholetime Director George M George Wholetime Director George M Jacob Wholetime Director George Alexander Wholetime Director Muthoot Finance Alexander George Wholetime Director 12#14BOARD OF DIRECTORS Jacob Benjamin Koshy Independent Director Jose K Mathew Independent Director Ravindra Pisharody Independent Director Pratip Chaudhuri Independent Director Usha Sunny Independent Director Abraham Chacko Independent Director Ⓡ Muthoot Finance V. A. George Independent Director 13#15DIVIDEND PAYOUT Delivering consistent returns to stakeholders Dividend (%)* Ⓡ Muthoot Finance (%) FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 200 200 150 120 100 60 60 60 Dividend payout (* in 8,027 8,024 7,249 5,796 4,813 2,885 2,877 2,813 millions) Dividend Payout Ratio (%) * On face value of 10 per equity share 20 20 21 19 24 24 22 22 20 29 29 35 55 14#16Pa Muthoot Finance GEOGRAPHICAL PRESENCE A strong presence of 4617 branches across India (%) Branches region wise State wise Branch Network 60 60 17 7 ■ East 16 North ■ West ■South (As of March 31, 2022) 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 Jammu & Kashmir 16 Punjab Himachal Pradesh 10 189 Haryana 136 Uttarakhand 22 Chandigarh 10 Delhi 224 Rajasthan 145 Uttar Pradesh 185 Bihar 25 Assam 33 Tripura 4 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 972 550 Andaman & Nicobar Islands 6 15#17DIGITAL INITIATIVES Pa 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 440 682 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 Loan repayment option through . Paytm Phone Pay Google Pay NPCI भारतीय राष्ट्रीय भुगतान निगम NATIONAL MUNTE CORPORATION OF INDIA BBPS-Baharat Bill Payment System eCollection-Virtual A/C Remittance UPI Powered by NPCI • • • • 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 16#18Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • • Muthoot Finance 33.8 % of gold loan customers are transacting online. (including Paytm, PhonePe & Google Pay) Muthoot Online Muthoot Qnline Our online services has now been re-branded to Muthoot Online, from WebPay earlier. Customers can now make payment of interest and principal re-payments using Debit Card/Net Banking. 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. ¡Muthoot App im Muthoot Mobile App Launched in Nov'16 has about 45.35 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.8.361 Crs payments from 2.86 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 17#19DIGITAL 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 Ⓡ Muthoot Finance 18#20Standalone Statement of Assets and Liabilities Particulars ASSETS Financial assets Muthoot Finance (in millions) Mar-22 Mar-21 Cash and cash equivalents 91,785 71,167 Bank Balance other than above 644 731 Derivative Financial Instruments 605 154 Trade Receivables Loans Investments 21 35 593,842 540,634 13,205 15,903 1,225 2,099 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 485 286 Property, Plant and Equipment 2,637 2,416 Captial Work-In-Progress 456 385 Other Intangible Assets 37 Other Non Financial Assets 603 54 786 Total-Assets 705,547 634,649 19#21Standalone Statement of Assets and Liabilities Particulars LIABILITIES Financial Liabilities Mar-22 Ⓡ Muthoot Finance (in millions) Mar-21 Derivative Financial Instruments 4,798 3,305 Trade Payables 1,512 2,017 Debt Securities 124,979 137,961 Borrowings(other than Debt securities) 371,710 319,406 Subordinated Liabilities 1,424 2,096 Other Financial Liabilities 11,782 12,135 Non-Financial Liabilities Current Tax Liabilities(net) 1,353 1,282 Provisions 3,598 3,626 Other Non-Financial Liabilities 945 432 EQUITY Equity Share Capital Other Equity Total Liabilities 4,013 179,432 4,012 148,377 705,547 634,649 20 20#22REVENUE & PROFIT Standalone Financial Results INCOME Ⓡ Muthoot Finance (in millions) FY 2022 FY 2021 YOY Growth (%) Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Interest Income 109,560 103,285 6 26,410 28,394 27,920 26,837 Other than Interest Income 1,424 2,458 (42) 374 324 414 312 Total 110,984 105,744 5 26,784 28,718 28,334 27,149 EXPENSES Finance Cost 38,358 36,924 4 9,208 9,533 9,794 9,822 Employee benefit Expense 9,487 9,270 2 2,543 2,456 2,242 2,246 Administrative & Other 7,421 7,235 3 2,066 1,834 1,959 1,562 expenses Impairment on Financial 1,270 950 34 (700) 889 745 336 Instruments Directors Remuneration 815 793 3 589 90 68 68 Depreciation & Amortisation 539 507 6 158 139 127 114 Total 57,890 55,678 4 13,866 14,941 14,936 14,148 PROFIT Profit Before Tax 53,094 50,065 6 12,918 13,777 13,398 13,001 Profit After Tax 39,543 37,222 6 9,603 10,289 9,940 9,712 21#23EQUITY Strong Capital Base Networth Ⓡ Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 (in millions) Mar-21 Equity Share Capital 4,013 4,013 4,013 4,012 4,012 Other Equity 179,432 170,109 159,715 149,830 148,377 Total 183,445 174,122 163,728 153,842 152,389 22 22#24ASSETS Core focus continues to be gold loan Gross Loan Assets under management* В Ⓡ Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Growth Growth (in million) (in million) (in million) (in million) QoQ (in million) YoY (%) (%) Gross loan assets under management 580,532 546,876 551,468 526,138 526,223 10 6 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 575,313 542,149 546,821 520,686 519,266 11 6 5,219 4,727 4,647 5,452 6,957 (25) 10 23 23#25LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Growth Growth Secured Non-Convertible Debentures (in million) (in million) (in million) (in million) (in million) YOY QoQ (%) (%) 2,195 2,323 2,417 2,524 (Muthoot Gold Bonds) 2,635 (17) (6) Secured Non-Convertible Debentures- Listed 123,034 123,352 127,807 133,057 135,656 (9) 0 Borrowings from Banks/Fls 276,631 246,158 228,813 208,484 198,331 39 12 External Commercial Borrowings- Senior 75,792 74,335 74,230 74,330 73,111 4 2 secured Notes Subordinated Debt Subordinated Debt -Listed 1,431 1,720 1,720 1,720 2,106 (32) (17) Commercial Paper 9,892 8,663 39,282 43,605 38,540 (74) 14 Other Loans 9,726 14,677 14,040 14,399 9,817 (1) (34) Total 498,701 471,228 488,309 478,119 460,196 8 6 *Principal amount of Borrowings 24 24#26GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* 640 Ⓡ Muthoot Finance (in billions) 575 547 542 521 519 600 560 520 480 440 408 400 360 336 320 288 280 260 272 216 233 243 240 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 *Principal amount of gold Loan assets 25 25#27GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security 200 Ⓡ Muthoot Finance (In tonnes) 187 178 180 176 171 178 169 171 160 155 142 149 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 26#28Ⓡ 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 Jun-21 Sep-21 Dec-21 Mar-22 East 5 6 6 7 7 8 8 9 9 9 9 99 West 11 13 15 17 18 19 20 19 19 19 19 19 19 North 19 22 22 22 23 23 23 23 22 22 22 22 22 South 65 59 57 54 52 50 49 49 50 50 50 50 50 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 Jun-21 Sep-21 Dec-21 Mar-22 260 216 6 2: 233 243 272 288 336 408 519 521 547 542 575 *Principal amount of Gold Loan Assets 27 27#29Ⓡ Muthoot Finance PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch * 135 115 95 89.28 74.97 75 66.70 63.69 63.20 55.01 56.93 50.63 55 35 15 (in millions) 124.61 118.39 117.42 112.1 112.10 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 *Principal amount of Gold Loan Assets 28#30HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 61 58 888 55 54 48 45 43 41 43 42 99 65 60 60 91 82 80 68 69 98 87 69 70 167 148 102 00 90 77 70 10 52 52 Pa Muthoot Finance (in billions) 112 104106 100 55 85 77 FY15 FY16 FY17 FY18 FY19 Q1 Q2 Q3 Q4 FY20 FY20 FY20 FY20 Q1 Q2 Q3 FY21 FY21 FY21 Q4 Q1 FY21 FY22 Q2 FY22 Q3 Q4 FY22 FY222 ■ Avg Monthly Disbursement ■Avg Monthly Collection Strong level of disbursements and collections 29 29#31HIGHLY LIQUID PORTFOLIO (2/2) Efficient Collection % of collections to disbursement Ⓡ Muthoot Finance 100% 62% 66% 60% 61% 60% 66% 62% 80% 60% 40% 20% 0% FY15 FY16 FY17 FY18 FY 19 FY 20 FY 21 ■ 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 30 30#32Ⓡ SAFETY OF OUR GOLD LOAN PORTFOLIO Lender's Perspective & Borrower's Perspective Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Gold Loan assets (in Billions) 575 542 547 521 519 407 336 288 272 243 Quantity of Gold content in Ornaments 187 178 178 171 171 176 169 155 149 142 held as Security (Tonnes) Gold Price/gm (*) 4,716 4,404 4,200 4,283 4,048 3,955 2,910 2,824 2,725 2,670 Lender's Perspective Market Price of Gold Content in 882 784 748 732 692 696 492 438 406 379 Ornaments (in Billions) Margin of safety on loans 35% 31% 27% 29% 25% 42% 32% 34% 33% 36% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards 1,058 941 898 878 830 835 590 526 487 455 making charges etc Equity of Borrower in the Gold Ornaments net of loans availed 46% 42% 39% 41% 37% 51% 43% 45% 44% 47% * Above calculations are made on overall portfolio and excludes interest accrued on loans 31#33CUSTOMER BASE Highly churning customer base (1/2) Ⓡ Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Mar-20 Mar-19 Gold Loan AUM (in Millions) 575,313 542,149 546,821 520,686 519,266 407,724 335,853 QoQ % change in Gold Loan AUM 6 (1) 5 0 5 No. of Loan Accounts 83,69,535 85,16,255 88,11,961 85,24,713 84,10,139 80,22,325 80,62,139 QoQ % change in no.of loan accounts (2) (3) 3 1 5 No.of Active customers QoQ % change in no.of customers 53,16,246 53,42,269 54,24,609 52,44,143 51,90,220 49,33,886 47,21,243 (2) 3 1 3 1 32 32#34Ⓡ CUSTOMER BASE Highly churning customer base (2/2) Muthoot Finance Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Mar-20 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 8 40,233 8 427,472 427,901 460,491 315,320 432,320 352,036 380,171 8 6 8 7 8 36,180 35,504 20,185 29,170 21,806 20,023 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) 372,764 350,086 358,860 246,220 361,090 346,626 360,251 7 7 7 5 42,954 36,142 30,859 17,299 27,528 7 7 8 25,622 23,148 763,317 801,394 723,000 556,419 756,618 702,566 779,363 14 69,973 15 13 11 15 72,272 54,358 31,522 48,859 14 17 42,368 42,751 33#35YIELD ON LOAN ASSETS AND NIM Yearly 26.00 (%) Quarterly Pa Muthoot Finance (%) 26.00 24.00 23.03 24.00 22.21 21.66 22.17 22.00 22.00 21.43 21.23 20.06 20.68 20.73 20.40 20.00 20.27 19.72 20.00 18.74 19.31 18.00 18.00 15.52 16.00 15.29 16.00 14.24 14.00 13.74 13.04 13.46 14.00 14.20 12.93 11.38 12.74 12.00 12.21 10.84 12.00 9.79 10.47 10.00 10.27 8.00 9.429.52 8.69 10.00 9.25 7.93 7.03 7.51 6.92 7.02 8.00 7.27 7.47 6.94 6.53 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17Mar-18 Mar-19 Mar-20 Mar-21 Mar-22* Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 34 34#36INTEREST SPREAD Yearly (%) Quarterly Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 21.66 22.21 22.17 21.43 22.00 21.23 22.00 20.27 19.31 19.72 20.73 20.68 20.40 20.00 20.06 20.00 18.74 18.00 18.00 16.00 16.00 14.04 13.45 13.49 14.00 12.42 14.00 11.88 11.99 12.61 12.23 12.64 12.21 12.00 10.93 10.90 10.80 10.53 12.00 10.91 8.99 10.00 9.24 9.00 8.39 8.38 8.76 8.68 10.00 8.07 8.92 7.83 8.07 8.19 8.00 8.09 8.00 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18*Mar-19*Mar-20*Mar-21*Mar-22* *Under IND-AS Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread 35 55#37RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 8.00 7.00 6.00 6.36 6.19 (%) Quarterly 10.00 8.11 7.99 9.00 7.24 8.00 Ⓡ Muthoot Finance (%) 7.49 7.38 7.38 7.00 6.81 6.00 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* *Under IND-AS Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* 36#38IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Stage I Loan Assets Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 545,326 493,279 479,721 517,110 518,634 Stage II Loan Assets 17,834 32,689 61,534 2,620 2,948 Stage III Loan Assets 17,372 20,908 10,213 6,408 4,641 % Stage III Assets on Gross Loan Assets 2.99 3.82 1.85 1.22 0.88 ECL Provision on Gross Loan Assets 7,219 7,997 7,175 6,501 6,257 ECL Provision as % of Gross Loan Assets 1.24 1.46 1.30 1.24 1.19 Excess Provision outstanding in books 2,954 2,954 2,954 2,954 2,954 Bad Debts (in millions) FY 2022 FY 2021 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 Bad Debts Written Off 289 118 58 63 77 91 % of Bad Debts written off to Gross 0.05 0.02 0.01 0.01 0.01 0.02 Loan Assets 37#39LIABILITY MIX Maintaining a diversified funding profile* (%) 15 2 2 Ⓡ Muthoot Finance 55 55 25 Secured Non-Convertible Debentures (Muthoot Gold Bonds) – ₹2,195 mn (0%) Secured Non-Convertible Debentures - Listed - 123,034 mn (25%) - Borrowings from Banks/Fis 276,631 mn (55%) External Commercial Borrowings- Senior secured Notes - 75,792 mn (15%) ■Subordinated Debt - 30 mn (0%) ■Subordinated Debt - Listed - 1,431 mn (0%) Commercial Paper - 9,892 mn (2%) Other Loans - 9,726 mn (2%) *Principal amount of Borrowings (As of March 31, 2022) 38#40DOMESTIC 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 ICRA A1+ Long-term Rating Rating 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 Indicates SUBORDINATED DEBT CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED BANK LOANS ICRA LIMITED ICRA AA+(Stable) ICRA AA+(Stable) 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 39#41Ⓡ 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 40 40#42BREAK-UP OF TOTAL INCOME Interest Income Yearly 140,000 Quarterly Ⓡ Muthoot Finance (in millions) 140,000 120,000 109,560 103,285 120,000 100,000 100,000 85,644 80,000 56,546 62,021 67,570 80,000 60,000 53,641 49,077 42,703 48,130 60,000 40,000 40,000 26,410 28,394 27,920 26,837 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* Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* Other Than Interest Income Yearly (in millions) Quarterly 3000 3,000 2,458 2500 2,500 2000 2,000 1,584 1500 921 1000 620 543 500 397 230 0 ווד 1,310 1,236 1,424 1,500 1,000 500 374 414 324 312 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* *Under IND-AS 41#43Ⓡ 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 5.63 6.00 5.43 5.50 5.10 5.50 5.01 4.89 4.94 5.00 4.46 5.00 4.50 4.08 3.92 4.50 4.00 3.48 4.00 3.50 3.50 3.00 3.19 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* 2.50 *Under IND AS 3.84 3.72 3.21 Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* 42 22#44Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly Muthoot Finance (in million) Quarterly (in millions) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15: Q4 FY Q3 FY Q2 FY Q1 FY 2022 2022* 2022* 2022* Employee Benefit Expenses 9,487 9,270 9,657 8,415 7,393 7,280 6,418 6,3042,543 2,456 2,242 2,246 Rent 2,350 2,189 2,158 1,974 1,913 1,808 1,713 1,650 601 575 569 605 Advertisement & Publicity 1,197 1,190 1,163 1,056 720 531 626 651 366 334 288 209 Communication Costs 498 387 355 368 404 372 378 371 151 124 119 104 Traveling and Conveyance 271 210 273 240 182 186 187 212 83 77 63 49 Printing and Stationery 150 151 177 153 136 129 144 160 43 36 38 33 Repairs and Maintenance 568 276 283 280 304 362 290 281 150 160 137 121 Legal and Professional 283 387 260 203 154 124 93 189 118 61 Charges 56 56 48 Business Promotion 7 369 720 481 209 201 149 140 (143) 70 39 41 Expenses Directors Remuneration 815 793 633 561 431 362 196 192 589 90 68 68 Depreciation and 539 507 431 421 439 482 575 841 158 139 127 114 Amortisation Expenses Others 2,098 2,075 1,677 1,260 2,970 835 1,014 733 698 396 652 351 Provision For Standard & 2,647 1,223 180 NPA Assets Impairment on Financial 1,270 950 957 259 316 (700) 889 744 337 instruments Total 19,533 18,754 18,744 15,670 15,571 15,319 13,006 11,904 4,657 5,408 5,141 4,326 *Under IND-AS 43#45BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Q4 FY Q3 FY Q2 FY Q1 FY 2022* 2022* 2022* 2022* Employee Benefit Expenses 49 Rent Advertisement & Publicity 226 49 52 54 47 48 49 12 12 12 13 12 12 13 6 6 7 5 3 5 315 53 55 45 44 52 14 13 11 11 14 8 00 6 6 5 Communication Costs 2 2 2 2 3 2 3 3 2 2 2 2 Traveling and Conveyance 1 1 1 2 1 1 1 2 2 1 1 1 Printing and Stationery 1 1 1 1 1 1 1 1 1 1 1 1 Repairs and Maintenance 3 1 2 2 2 3 3 3 Legal and Professional 1 2 1 1 1 1 1 2 3 1 1 1 Charges Business Promotion 2 4 3 1 1 1 1 (3) 1 1 1 Expenses Directors Remuneration ☑ 3 3 2 2 2 13 2 1 2 Depreciation and 3 3 2 3 7 3 3 2 3 Amortisation Expenses Others 11 12 0 8 19 5 8 6 15 7 13 8 Provision For Standard & I 17 9 2 I NPA Assets Impairment on Financial 7 LO 5 5 2 2 (15) 16 14 8 00 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 44#46PROFITABILITY RATIOS Yearly (%) ht Ⓡ Muthoot Finance Quarterly (%) Q4 FY (Based on Income) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 2022* Q3 FY 2022* Q2 FY Q1 FY 2022* 2022* Interest expense to Gross Income 34.56 34.92 32.00 32.51 30.50 39.92 46.31 48.71 34.38 33.20 34.57 36.18 Selling, general and administrative expenses to Net Income 24.40 25.13 29.26 32.24 28.93 34.88 41.36 48.26 29.58 22.83 23.03 22.37 Provisions & Write Offs to 1.75 1.38 1.61 0.59 5.44 8.16 6.20 1.67 (3.98) 4.64 4.02 1.94 Net Income Operational expenses to 26.15 26.51 30.87 32.84 34.38 43.03 47.56 49.93 25.60 27.46 27.04 24.31 Net Income OPBDT / Net Income 73.85 73.49 69.13 67.16 65.62 56.97 52.44 50.06 74.40 72.54 72.95 75.69 Depreciation to Net Income 0.74 0.74 0.73 0.90 1.00 1.33 2.13 3.72 0.90 0.73 0.69 0.66 OPBT/ Net Income 73.11 72.75 68.40 66.26 64.63 55.63 50.31 46.34 73.50 71.81 72.27 75.03 PBT/ Net Income 73.11 72.75 68.40 66.26 64.63 55.63 50.31 46.34 73.50 71.81 72.27 75.03 PAT / Net Income 54.45 54.09 50.88 42.47 40.38 34.17 30.93 30.23 54.64 53.63 53.61 56.05 *Under IND-AS 45#47Ⓡ PROFITABILITY RATIOS Yearly (Based on Average Loan Assets) Muthoot Finance (%) Quarterly (%) Mar-22* Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Q4 FY: Q3 FY Q2 FY Q1 FY 2022* 2022* 2022* 2022* Interest income to avg. loan assets 20.06 22.17 23.03 21.63 22.21 21.43 19.72 19.30 18.74 20.68 20.73 20.40 Interest expense to avg. loan assets 7.02 7.93 7.51 7.16 6.92 8.69 9.25 9.52 6.53 6.94 7.27 7.47 Net Interest Margin 13.03 14.24 15.52 14.47 15.29 12.74 10.47 9.78 12.21 13.74 13.46 12.93 Other income to avg. loan assets 0.26 0.53 0.43 0.40 0.47 0.35 0.25 0.25 0.27 0.24 0.31 0.24 Net Income Including Other 13.30 14.77 15.95 14.87 15.76 13.09 10.72 10.03 12.47 13.97 13.76 13.17 Income Selling, general and administrative expenses to 3.25 3.72 4.68 4.81 5.32 4.56 4.43 4.84 3.69 3.19 3.17 2.95 avg. loan assets Provisions and write offs to 0.23 0.20 0.26 0.08 0.11 1.07 0.67 0.17 avg. loan assets (0.50) 0.65 0.55 0.26 PBDT to avg. loan assets 10.66 10.85 11.01 9.98 10.33 7.45 5.62 5.02 9.27 10.13 10.04 9.97 Depreciation to avg. loan 0.94 0.10 0.11 0.12 0.15 0.17 0.23 0.37 0.11 0.10 0.09 0.08 assets PBT to avg. loan assets 9.72 10.75 10.90 9.85 Tax to avg. loan assets 2.48 2.76 2.79 3.54 PAT to avg. loan assets 7.24 7.99 8.11 6.31 6.36 4.47 3.32 3.82 2.81 2.08 1.62 3.03 6.81 10.19 7.28 5.39 4.65 9.17 10.03 2.35 2.54 9.95 9.88 2.57 2.50 7.49 7.38 7.38 Cash Profit to avg. loan assets 8.18 8.09 8.22 6.44 6.51 4.65 3.54 3.40 6.92 7.59 7.47 7.46 *Under IND-AS 46#48PROFITABILITY Efforts getting rewarded Profitability at a glance Yearly PBT PAT 55,000 50,000 45,000 40,000 35,000 30,000 30,768 28,447 30,183 25,000 20,000 19,210 15,114 13,168 19,721 15,000 17,776 11,936 10,279 10,042 10,000 11,798 7,801 8,096 5,000 6,705 0 Ⓡ Muthoot Finance (in millions) Quarterly PBT PAT 53,094 45,000 50,065 40,000 40,574 39,543 35,000 37,222 30,000 25,000 20,000 15,000 12,918 13.777 13,398 13,001 9,603 10,289 10,000 9,940 9,712 5,000 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Mar-22* *Under IND-AS Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* 47#49NETWORTH Steady capital position Share Capital and Reserves & Surplus 200,000 Ⓡ Muthoot Finance (in millions) 183,445 180,000 174,122 163,728 160,000 153,842 152,389 140,000 120,000 115,718 97,928 100,000 78,120 80,000 65,164 56,192 60,000 37,35642,646 50,835 40,000 20,000 0 *Under IND-AS Mar 13 Mar-14 Mar- 15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Jun-21* Sep-21* Dec-21* Mar-22* 48 48#50RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly 52253225 O 50 45 40 30.15 30 19.50 20 15 (%) В Ⓡ Muthoot Finance Quarterly (%) 28.26 30 27.77 24.81 22.40 23.55 20 55 50 40 56423322 24.36 25.04 25.37 21.48 19.44 15 10 14.35 15.13 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18*Mar 19*Mar 20*Mar 21*Mar 22* 0 *Under IND-AS Q4 FY 2022* Q3 FY 2022* Q2 FY 2022* Q1 FY 2022* 49 49#51CAPITAL RATIO Ⓡ Muthoot Finance Maintaining capital well above the statutory requirement Capital Adequacy Ratio (%) Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Capital Adequacy Ratio 29.97 29.94 27.60 27.32 27.39 Tier-I 29.10 28.96 26.66 26.26 26.31 Tier-II 0.87 0.98 0.94 1.06 1.08 50 50#52MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Earnings per share (*) - Basic Diluted Ⓡ Muthoot Finance FY 2022 FY 2021 Q4 FY 2022 Q3 FY 2022 Q2 FY 2022 Q1 FY 2022 98.55 92.79 23.93 25.64 24.77 24.21 98.50 92.71 23.92 25.63 24.77 24.18 Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Book Value per share (*) 456.98 433.74 407.86 383.33 379.70 Market price per share (₹)** 1,330.95 1,495.65 1,450.30 1,481.65 1,205.90 Price to Earnings ratio*** 13.51 15.04 14.72 15.43 13.00 Price to Book Value ratio 2.91 3.45 3.56 3.87 3.18 **Source: www.nseindia.com ***Based on trailing 12 months EPS 51#53CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (* In millions) Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Outside Liabilities 522,101 494,187 510,871 499,827 482,260 Cash & Bank Balances & 91,926 85,654 77,897 82,492 71,308 Investment in MF liquid Funds Tangible Networth 183,408 174,081 163,681 153,791 152,335 Capital Gearing 2.35 2.35 2.65 2.71 2.70 52 52#54Ⓡ 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 24205 24224 23455 (No. of Employees) 26716 26599 26139 25911 25554 25397 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 53 53#55OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 54 54#56ASIA 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 March 31,2022, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 17,345 million as on March 31, 2022 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 59 branches across Sri Lanka. The company formerly known as Finance and Land Sales has been in operation for over 50 years, evolving to serve the growing needs of people of Sri Lanka. 55#57PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance o Fixed Deposits 。 Leasing 。 Business Loan o Personal Loan 。 Group Personal Loan o Corporate Loans 。 Mortgage Loans 。 Factoring 。 Short Term Loans Micro Finance 。 Loan against Gold Jewellery 90 56 Ⓡ#58BRANCH NETWORK Pa 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 57 57#59Key Financial Parameters Particulars INR/LKR Number of branches Number of Employees Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) FY 2022 FY 2021 0.367786 0.257066 59 48 526 427 Gross Loan AUM (LKR) 17,345 14,002 Capital Adequacy Ratio (%) 28 17 Total Revenue (LKR) Total Expense (LKR) Profit Before Tax (LKR) 3,181 2,952 2,979 2,865 202 87 118 45 Profit After Tax (LKR) Shareholders Funds (LKR) 2,756 2,222 Total Outside Liabilities (LKR) 16,586 13,128 Total Assets (LKR) 19,342 15,350 58#60OUR SUBSIDIARY Ⓡ Muthoot Finance Da Muthoot Homefin 59 59#61Ⓡ 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 March 31, 2022, it has a loan portfolio of Rs. 14,699 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. 60 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) FY 2022 FY 2021 Number of branches 108 108 Number of Sales Offices 108 108 Number of Employees 243 299 Gross Loan AUM (R) 14,699 17,042 Capital Adequacy Ratio (%) 60 50 Total Revenue (*) 2,137 2,446 Total Expense (*) 2,036 2,277 Profit Before Tax (*) 101 169 Profit After Tax (*) 84 126 Shareholders Funds (*) 4,471 4,387 Total Outside Liabilities (*) 8,355 12,397 Total Assets (₹) 12,826 16,784 61 19#63Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars Disbursement (*) (in millions) FY 2022 FY 2021 1,341 1,010 Borrowings (*) 7,643 11,786 Debt Equity Ratio (%) 1.71 2.68 Yield on Advances (%) 12.41 12.51 Interest Spread (%) 4.11 3.41 NIM (%) 6.16 5.13 Cost to Income Ratio (%) 56.76 42.16 Return on Assets (ROA) (%) 0.65 0.75 Return on Equity (ROE) (%) 1.91 2.92 Stage III Loan Assets 309 681 % Stage III assets on Gross Loan Assets (AUM) 2.10 4.00 Stage III ECL Provision 178 207 ECL Provision 257 261 ECL Provision as a % of Gross Loan Assets (AUM) 1.75 1.53 Number of Customers 21,035 22,765 62 62#64Financial Highlights • • • Ⓡ Muthoot Homefin Muthoot Finance Disbursements in FY 2022: Rs 1341 mn. AUM as on March 31, 2022: Rs. 14,699 mn, Loan Book as on March 31, 2022: Rs 10,538 mn. Average Ticket Size in FY 2022: Rs. 0.92 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 FY 2022: 0.65%, ROE for FY 2022: 1.91% Average cost of borrowings of 8.30% for FY 2022. Capital Adequacy Ratio: 60.34%, Debt Equity Ratio: 1.71 • Average Yield: 12.41%, Interest Spread: 4.11% . Received PMAY subsidy of INR 557 mn for 3453 cases in FY 2022. Growth Drivers Profitability • • Increasing the leverage from 1.71x 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 1.71 times as on March 31, 2022, 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. Opportunities 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 63 83#65OUR SUBSIDIARY Muthoot Insurance Brokers Ⓡ Muthoot Finance 49 64#66Ⓡ 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 Q4 FY22, it has insured more than 11,06,000 lives with a First year premium collection of Rs. 1,328 million under Traditional, Term and Health products.. During Q4 FY21, it has insured more than 12,10,000 lives with a First year premium collection of Rs.1,000 million under Traditional, Term and Health products.. 65 55#67Key Business Parameters Particulars Premium Collection (*) Number of Policies Key Financial Parameters Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) FY 2022 FY 2021 4,793 36,03,048 4,055 32,23,737 (in millions) Particulars FY 2022 FY 2021 Total Revenue (*) 450 467 Total Expense (*) 78 43 Profit Before Tax (*) 372 424 Profit After Tax (*) 276 316 Shareholders Funds (*) 1,123 847 Earnings per share () 369 422 99 66#68OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 20 67#69BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Ⓡ Muthoot Finance As of March 2022, Muthoot Finance holds 60.69% 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 twelve 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 March 31, 2022, BML operations are spread over 18 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, Tripura and Delhi. It has 729 branches, with 186 controlling regional offices and employs 5939 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 43,658 mn in March 2022 68#70Pa Muthoot Finance Key Financial Parameters Particulars Number of Branches FY 2022 (in millions) FY 2021 729 649 Number of Employees 5,939 4,562 Gross Loan AUM (*) 43,658 32,999 Capital Adequacy Ratio (%) 24 22 Total Revenue (*) 7,284 5,532 Total Expense (*) 6,723 4,962 Profit Before Tax (*) 561 570 Profit After Tax (*) 451 467 Stage III Loan Assets 2,502 783 % Stage III assets on Gross Loan Assets (AUM) 5.73 2.37 Stage III ECL Provision 1,682 618 ECL Provision 2,238 980 ECL Provision as a % of Gross Loan Assets (AUM) 5.13 2.97 Shareholders Funds (*) 8,559 5,417 Total Outside Liabilities (*) 37,044 29,256 Total Assets (₹) 45,603 34,673 69#71OUR SUBSIDIARY Da Muthoot Money Ⓡ Muthoot Finance 10 70#72MUTHOOT 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. As on 31st March, 2022 it has a total loan portfolio of Rs.2,071 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 71#73Key Financial Parameters Particulars Number of branches Number of Employees Gross Loan AUM (*) Capital Adequacy Ratio(%) Total Revenue (*) Total Expense (*) Profit Before Tax (*) Muthoot Money Muthoot Finance (in millions) FY 2022 FY 2021 68 14 241 188 2,071 3,668 46 29 456 697 544 656 (88) 41 Profit After Tax (*) (66) 37 Stage III Loan Assets 137 314 % Stage III assets on Gross Loan Assets (AUM) 6.61 8.56 Stage III ECL Provision 51 129 ECL Provision 61 172 ECL Provision as a % of Gross Loan Assets (AUM) 2.93 4.68 Shareholders Funds (*) 1,035 1,099 Total Outside Liabilities (*) 1,233 2,789 Total Assets (*) 2,268 3,888 72#74OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth MUTHOOT TRUSTEE PRIVATE LIMITED Networth Ⓡ Muthoot Finance (In millions) FY 2022 FY 2021 1,096 1,072 (In millions) FY 2022 FY 2021 10 10 13 73#75Thank You 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 Muthoot Family - 800 years of Business Legacy EMAIL (Individual & Corporate Investors) [email protected] (Institutional Investors) [email protected] www.muthootfinance.com