#1Pa Muthoot Finance Financial Results Q4 FY 2021 March 2021 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) 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 (%) Ⓡ Muthoot Finance FY 2021 FY 2020 YoY (%) 5,451 5,330 2 582,802 468,705 24 14 38,189 31,687 21 90 88 10 12 Contribution in the Consolidated Profit of the Group Muthoot Finance (%) 97 95 3 5 Subsidiaries (%) *Principal amount of Loan assets 3#5THE GROUP Gross Loan Assets* of the Group FY 2021 FY 2020 Ⓡ Muthoot Finance (in millions) YoY (%) Muthoot Finance Limited 526,223 416,106 26 Muthoot Homefin (India) Limited 17,042 19,769 (14) Belstar Microfinance Limited 32,999 26,310 25 Muthoot Money Limited 3,668 5,090 (28) Asia Asset Finance PLC 5,150 5,380 (4) Less: Intra-Group Loan Assets 2,280 3,950 (42) Total 582,802 468,705 24 *Principal amount of Loan assets 4#6THE GROUP Standalone Profit of Group Companies Muthoot Finance Limited Ⓡ Muthoot Finance FY 2021 FY 2020 37,222 30,183 Muthoot Homefin (India) Limited 126 318 Muthoot Insurance Brokers Private Limited 316 104 Belstar Microfinance Limited 467 990 Muthoot Money Limited 37 27 Asia Asset Finance PLC 18 28 Muthoot Asset Management Private Limited 19 51 Muthoot Trustee Private Limited (0.10) (0.13) (in millions) 5#7Ⓡ Muthoot Finance (in millions) FY 2021 FY 2020 Consolidated Statement of Assets and Liabilities Particulars ASSETS Financial assets Cash and cash equivalents 77,775 58,348 Bank Balance other than above 2,435 2,959 Derivative Financial Instruments 154 3,449 Trade Receivables 98 90 Loans 588,085 Investments 8,085 Other Financial Assets 4,383 470,677 6,302 2,449 Non-Financial Assets Current Tax Assets (Net) 94 94 Defered Tax Assets (Net) 593 171 Investment Property 139 156 Property, Plant and Equipment 2,575 2,427 Right to use Asset 170 168 Captial Work-In-Progress 385 287 Goodwill 300 300 Other Intangible Assets 86 85 Intangible assets under development 1 Other Non Financial Assets 1,056 854 Total-Assets 686,414 548,816 160#8Consolidated Statement of Assets and Liabilities Particulars LIABILITIES Ⓡ Muthoot Finance (in millions) FY 2021 FY 2020 Financial Liabilities Derivative Financial Instruments 3,305 Trade Payables 2,112 2,259 Other Payables 2 Debt Securities 146,670 102,660 Borrowings (other than Debt securities) 351,010 300,115 Deposits 2,580 2,560 Subordinated Liabilities 3,707 4,017 Lease Liability 178 168 Other Financial Liabilities 13,598 11,885 Non-Financial Liabilities Current Tax Liabilities (net) 1,303 808 Provisions Deferred Tax Liabilities(net) Other Non-Financial Liabilities EQUITY Equity attributable to equity owners of the company 155,750 118,292 Non-Controlling Interest 1,846 1,721 Total Liabilities and Equity 686,414 548,816 7 3,695 3,712 142 151 517 468#9Consolidated Financial Results Particulars Income Interest Income Service Charges Sale of Services Other Income Income other than above Total Income Expenses Ⓡ Muthoot Finance (in millions) FY 2021 FY 2020 112,316 94,177 986 943 120 191 356 233 1,886 1,528 115,664 97,072 Finance Cost 40,999 31,728 Impairment of Financial Instruments 2,552 1,871 Employee Benefit Expenses 11,893 12,085 Depreciation, Amortisation and Impairment 674 592 Other Expenses 8,232 8,192 Total Expenses 64,349 54,468 Profit before tax 51,315 42,604 Tax expense 13,126 10,917 Profit after Tax 38,189 31,687 Earnings per share -Basic (7) 94.84 78.30 Earnings per share -Diluted (₹) 94.76 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 OTHER SERVICES Gold Loans Money Transfer Services Collection Services Business loans Personal Loans 6#11MFIN - A GLIMPSE Ⓡ Muthoot Finance 29 States/Union territory presence 171 tonnes Gold jewellery kept as security 4,600+ Pan-India branches 25,000+ Team members 526,223 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, 2021) 10#12SHAREHOLDING PATTERN Strong promoter interest in business with 74% stake 23.17 3.26 73.56 В Ⓡ Muthoot Finance (%) Shareholding as on March 31, 2021 Promoters & Relatives FII, FC, MF & Others ■ Public NSE Ticker MUTHOOTFIN BSE Ticker 533398 Market Capitalisation (as on March 31,2021) 483,802 million 11#13BOARD OF DIRECTORS George Alexander Muthoot Managing Director Ⓡ Muthoot Finance George Thomas Muthoot Whole time Director George Jacob Muthoot Whole time Director Alexander M George Whole time Director Jacob Benjamin Koshy Independent 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 (%)* Ⓡ Muthoot Finance (%) FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 200 150 120 100 60 60 60 Dividend payout (in millions) 8,024 7,249 5,796 4,813 2,885 2,877 2,813 Dividend Payout Ratio (%) * On face value of 10 per equity share 21 21 19 24 22 20 20 29 35 13#15GEOGRAPHICAL PRESENCE A strong presence of 4632 branches across India (%) Branches region wise State wise Branch Network 60 60 17 ■ East 16 North ■ West ■South (As of March 31, 2021) 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 Pa Muthoot Finance Punjab 189 Himachal Pradesh 10 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#17Ⓡ DIGITAL INITIATIVES Online Gold Loan (OGL) • Muthoot Finance 24 % of gold loan customers are transacting online. (including Paytm, Phone Pe & Google Pay) Muthoot Online ¡Muthoot App im 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 Mobile App Launched in Nov' 16 has about 32.3 lakhs downloads. Online Gold Loan (OGL) facility available to withdraw loan amount and renewal, apart from payments. Rs.5,175 Crs payments from 1.55 Cr successful transactions so far (Including Web Pay). 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) Introduced Whats App opt-in facility for customers#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 Facility to place loan release request online Option to update Bank account and PAN card online Ⓡ Muthoot Finance 17#19Standalone Statement of Assets and Liabilities Particulars ASSETS Financial assets Muthoot Finance (in millions) FY 2021 FY 2020 Cash and cash equivalents 71,167 55,046 Bank Balance other than above 731 1,360 Derivative Financial Instruments 154 3,449 Trade Receivables Loans Investments 35 47 540,634 426,042 15,903 14,383 2,099 1,057 Other Financial Assets Non-Financial Assets Defered Tax Assets (Net) 286 Property, Plant and Equipment 2,416 2,227 Captial Work-In-Progress 385 287 Other Intangible Assets 54 51 Other Non Financial Assets 786 648 Total Assets 634,649 504,597 18#20Standalone Statement of Assets and Liabilities Particulars LIABILITIES Ⓡ Muthoot Finance (in millions) FY 2021 FY 2020 Financial Liabilities Derivative Financial Instruments 3,305 Trade Payables 2,017 2,185 Debt Securities 137,961 99,619 Borrowings (other than Debt securities) 319,406 268,706 Subordinated Liabilities 2,096 2,976 Other Financial Liabilities 12,135 10,617 Non-Financial Liabilities Current Tax Liabilities (net) 1,282 782 Provisions 3,626 3,633 Deferred Tax Liabilities (net) 40 Other Non-Financial Liabilities 432 321 EQUITY Equity Share Capital Other Equity Total Liabilities 4,012 4,010 148,377 111,708 634,649 504,597 19#21REVENUE & PROFIT Standalone Financial Results INCOME Ⓡ Muthoot Finance (in millions) FY 2021 FY 2020 YoY Growth (%) Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Interest Income 103,285 85,644 21 27,891 27,169 25,066 23,160 Other than Interest Income 2,458 1,584 55 390 596 778 694 Total 105,744 87,228 21 28,281 27,765 25,844 23,854 EXPENSES Finance Cost 36,924 27,909 32 9,513 9,455 9,241 8,715 Employee benefit Expense 9,270 9,657 (4) 2,209 2,329 2,450 2,282 Administrative & Other 7,235 7,067 2 2,246 1,858 1,853 1,277 expenses Impairment on Financial 950 957 Instruments (1) 111 585 107 146 Directors Remuneration 793 633 25 551 81 80 80 Depreciation & Amortisation 507 431 18 154 140 114 99 Total 55,678 46,654 19 14,784 14,450 13,845 12,599 PROFIT Profit Before Tax 50,065 40,574 23 13,496 13,315 11,999 11,255 Profit After Tax 37,222 30,183 23 9,957 9,914 8,943 8,408 20#22EQUITY Strong Capital Base Networth Ⓡ Muthoot Finance Mar-21 Dec-20 Sep-20 Jun-20 (in millions) Mar-20 Equity Share Capital 4,012 4,012 4,012 4,010 4,010 Other Equity 148,377 137,768 127,954 119,151 111,708 Total 152,389 141,780 131,966 123,161 115,718 21#23ASSETS Core focus continues to be gold loan Gross Loan Assets under management* В Ⓡ Muthoot Finance Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Growth Growth (in million) (in million) (in million) (in million) (in million) YoY (%) QoQ (%) Gross loan assets under management 526,223 503,907 470,163 412,957 416,106 26 4 Break-up of Gross Loan Assets under management Gold Loans under management Other loans *Principal amount of Loan assets 519,266 496,225 462,339 404,949 407,724 27 5 6,957 7,682 7,824 8,008 8,382 (17) (9) 22 22#24LIABILITIES Stable sources of funding* Ⓡ Muthoot Finance Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Growth Growth YoY (in million) (in million) (in million) (in million) (in million) QoQ (%) (%) Secured Non-Convertible Debentures 2,635 2,775 2,896 3,023 3,160 (17) (5) (Muthoot Gold Bonds) Secured Non-Convertible Debentures- Listed 135,656 132,758 108,190 90,110 96,840 40 2 Borrowings from Banks/Fls 198,331 194,851 177,364 156,452 145,775 36 2 External Commercial Borrowings- Senior 73,111 73,305 73,853 75,583 75,665 (3) secured Notes Subordinated Debt 21 (100) Subordinated Debt -Listed 2,106 2,411 2,775 2,969 2,969 (29) (13) Commercial Paper 38,540 49,572 47,290 49,288 35,954 7 (22) Other Loans 9,817 9,845 9,956 11,268 11,880 (17) . Total 460,196 465,517 422,324 388,693 372,264 24 (1) *Principal amount of Borrowings 223#25GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management* Ⓡ Muthoot Finance (in billions) 520 480 440 519 496 462 408 405 400 360 336 320 288 280 272 260 233 240 216 243 200 160 120 80 40 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 *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) 180 176 169 165 166 171 163 160 155 149 142 134 140 131 118 120 100 80 60 40 20 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 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 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 East 5 6 6 7 7 8 8 9 9 9 9 9 West 11 13 15 17 18 19 20 19 20 19 19 19 North 19 22 22 22 23 23 23 23 23 23 23 22 South 65 59 57 54 52 50 49 49 48 49 49 50 Gold Loan Assets Under Management * (in billions) Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 |Jun-20 Sep-20 Dec-20 Mar-21 260 216 233 243 272 288 336 408 405 462 496 519 *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 * 135 (in millions) 115 112.10 107 13 100.36 95 89.28 88.55 74.97 75 63.69 63.20 66.70 56.93 55.01 50.63 55 35 15 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 *Principal amount of Gold Loan Assets 27 27#29HIGHLY LIQUID PORTFOLIO (1/2) Disbursements and Collections 95 68 69 65 61 60 58 60 55 54 48 45 43 41 43 42 FY15 FY16 FY17 FY18 98 91 87 82 69 70 167 148 Pa Muthoot Finance (in billions) 102 90 77 70 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 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 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Gold Loan assets ( in Billions) 519 497 462 405 407 336 288 272 243 233 Quantity of Gold content in Ornaments 171 166 163 165 176 169 155 149 142 131 held as Security (Tonnes) Gold Price/gm (₹) 4,048 4,599 4,621 4,448 3,955 2,910 2,824 2,725 2,670 2,470 Lender's Perspective Market Price of Gold Content in 692 763 753 734 696 492 438 406 379 324 Ornaments (in Billions) Margin of safety on loans 25% 35% 39% 45% 42% 32% 34% 33% 36% 28% Borrower's Perspective Market Value of Gold Ornaments (in Billions) with 20% additional value towards 830 916 904 881 835 590 526 487 455 389 making charges etc Equity of Borrower in the Gold Ornaments 37% 46% 49% 54% 51% 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 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 Gold Loan AUM (in Millions) 519,266 496,225 462,339 404,949 407,724 377,245 349,419 351,708 335,853 QoQ % change in Gold Loan AUM 5 7 14 (1) 8 (1) 5 No. of Loan 84,10,139 80,32,610 76,24,105 75,79,640 80,22,325 80,25,103 81,03,274 82,35,723 80,62,139 Accounts QoQ % change in no. of loan 5 5 1 (6) (1) (2) 2 accounts No. of Active customers QoQ % change 51,90,220 50,15,666 48,28,505 47,45,491 49,33,886 48,95,029 48,57,129 48,51,024 47,21,243 in no. of customers 3 4 2 (4) 1 1 3 31#33Ⓡ CUSTOMER BASE Highly churning customer base (2/2) Above Gold Loan AUM and No. of customers includes: Fresh loans to inactive customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans to New Customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Fresh loans with new collateral to existing active customers during the quarter in Gold Loan AUM No. of customers % of customers O/s Loan Amount (in Millions) Muthoot Finance Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19 Jun-19 Mar-19 432,320 438,173 395,800 185,351 352,036 400,888 367,872 414,527 380,171 8 9 8 4 7 8 8 9 8 29,170 29,600 27,268 10,547 21,806 23,608 17,549 21,226 20,023 361,090 388,391 409,037 160,123 346,626 376,036 347,848 387,384 360,251 7 8 3 7 8 7 8 8 27,528 29,759 33,388 10,807 25,622 25,583 19,241 23,487 23,148 756,618 720,583 644,535 364,964 702,566 802,024 799,453 845,482 779,363 15 14 13 8 14 16 16 17 17 41,281 48,079 42,751 32 48,859 46,175 43,390 20,576 42,368 49,661#34YIELD ON LOAN ASSETS AND NIM Yearly (%) Quarterly Ⓡ Muthoot Finance (%) 26.00 26.00 24.00 23.03 24.00 21.66 22.71 22.21 21.63 21.43 22.17 22.31 22.35 22.00 22.00 21.66 19.72 20.00 19.31 20.00 20.27 18.00 18.00 15.52 16.00 15.2914.47 16.00 14.24 14.54 14.27 14.34 13.94 14.00 12.74 14.00 11.38 12.00 10.84 10.47 12.00 9.52 10.00 10.27 8.69 10.00 9.42 9.79 7.93 9.25 8.37 8.41 8.00 7.16 7.51 7.77 6.92 8.00 7.39 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* *Under IND -AS Interest Income on Average Loan Assets Interest Expense on Average Loan Assets Net Interest Margin 33 33#35INTEREST SPREAD Yearly 26.00 (%) Quarterly Muthoot Finance (%) 26.00 24.00 23.03 24.00 22.21 22.17 21.66 21.43 22.71 21.63 22.35 22.00 22.3 22.00 21.66 20.27 19.31 19.72 20.00 20.00 18.00 18.00 16.00 16.00 14.04 13.45 13.49 13.85 14.00 12.42 14.00 13.50 13.68 13.27 11.88 12.63 12.00 10.93 10.90 10.80 12.00 10.53 10.00 9.24 9.00 8.99 8.39 8.38 8.92 8.76 868 10.00 9.03 8.79 9.08 8.16 8.45 8.00 8.00 6.00 6.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* *Under IND-AS Interest Income on Average Loan Assets Interest Expenses on Average Outside Liabilities Interest Spread Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* 34#36RETURN ON AVERAGE LOAN ASSETS Attractive returns over the years Yearly 10.00 9.00 (%) Quarterly 10.00 Ⓡ Muthoot Finance 8.11 9.00 7.99 8.00 8.14 8.11 8.10 8.00 7.73 7.00 6.31 6.36 7.00 6.00 6.00 5.00 5.00 4.05 4.47 4.00 3.22 4.00 3.32 3.03 3.00 T 3.00 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q4 FY 2021*Q3 FY 2021*Q2 FY 2021*Q1 FY 2021* *Under IND-AS 55 35 (%)#37IMPAIRMENT OF LOAN ASSETS Stage III Loans Assets and ECL Provision Pa Muthoot Finance (in millions) Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Stage III Loan Assets 4,641 6,568 5,920 10,553 8,992 % Stage III Assets on Gross Loan Assets ECL Provision on Gross Loan Assets 0.88 1.30 1.26 2.56 2.16 6,257 6,208 5,636 5,538 5,427 ECL Provision as % of Gross Loan Assets Excess Provision outstanding in books 1.19 1.23 1.20 1.34 1.30 2,954 2,954 2,954 2,954 2,954 Staging Criteria Stage Description Stage 1 Stage 2 Stage 3 PD-Probability of default Bad Debts 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) FY 2021 FY 2020 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Bad Debts Written Off 118 599 53 27 10 28 % of Bad Debts written off to Gross Loan Assets 0.02 0.14 0.01 0.005 0.002 0.01 36#38LIABILITY MIX Maintaining a diversified funding profile* (%) 16 8 N Ⓡ Muthoot Finance 43 43 29 29 Secured Non-Convertible Debentures (Muthoot Gold Bonds) - ₹2,635 mn (1%) Secured Non-Convertible Debentures - Listed - 135,656 mn (29%) - Borrowings from Banks/Fis -198,331 mn (43%) External Commercial Borrowings- Senior secured Notes - 73,111 mn (16%) Subordinated Debt - 0mn (0%) ■Subordinated Debt - Listed - 2,106 mn (0%) Commercial Paper - 38,540 mn (8%) Other Loans - 9,817 mn (2%) *Principal amount of Borrowings (As of March 31, 2021) 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 Indicates Ⓡ Muthoot Finance ICRA A1+ Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk Very strong degree of safety with regard to timely payment of financial obligation and carry lowest credit risk SUBORDINATED DEBT Rating CRISIL AA+/Stable CRISIL RATINGS ICRA LIMITED ICRA AA+(Stable) NON CONVERTIBLE DEBENTURE CRISIL RATINGS CRISIL AA+/Stable ICRA LIMITED ICRA AA+(Stable) BANK LOANS ICRA LIMITED ICRA AA+(Stable) Indicates High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk High Degree of safety with regard to timely servicing of financial obligations and carry very low credit risk 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 140,000 120,000 Quarterly Ⓡ Muthoot Finance (in millions) 140,000 103,285 120,000 100,000 85,644 100,000 80,000 60,000 53,641 49,077 42,703 48,130 56,546 62,021 67,570 80,000 60,000 40,000 40,000 27,891 27,168 25,066 23,160 20,000 20,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* Other Than Interest Income Yearly Quarterly (in millions) 3000 3,000 2,458 2500 2,500 2000 2,000 1,584 1500 1,310 1,236 1,500 921 1000 620 1,000 543 778 694 500 397 596 230 500 390 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* *Under IND-AS 40#42Ⓡ OPERATING EXPENSES TO AVERAGE LOAN ASSETS Muthoot Finance Operational efficiency over the years Yearly (%) Quarterly (%) 8.00 8.00 7.50 7.50 7.00 7.00 6.50 6.50 6.00 5.63 6.00 5.43 5.50 5.10 5.50 5.01 4.89 4.94 5.00 5.00 4.46 4.50 4.08 3.92 4.50 4.08 4.00 3.99 3.99 4.00 3.50 3.65 3.50 3.00 3.00 2.50 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* 2.50 *Under IND AS Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021⭑* 41#43Ⓡ BREAK-UP OF OPERATING EXPENSES Yearly Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13: Employee Benefit 9,270 9,657 8,415 7,393 7,280 6,418 6,304 5,917 5,453 Muthoot Finance (in million) Quarterly (in millions) Q4 FY Q3 FY Q2 FY Q1 FY 2021* * 2021* 2021* 2021* 2,210 2,329 2,450 2,282 Expenses Rent 2,189 2,158 1,974 1,913 1,808 1,713 1,650 1,542 1,309 607 560 592 429 Advertisement & 1,190 1,163 1,056 720 531 626 651 702 579 380 264 404 142 Publicity Communication Costs 387 355 368 404 372 378 371 364 243 99 113 101 75 Traveling and 210 273 240 182 186 187 212 190 175 71 58 49 32 Conveyance Printing and Stationery 151 177 153 136 129 144 160 185 168 39 49 40 22 Repairs and 276 283 280 304 362 290 281 272 256 58 84 76 58 Maintenance Legal and Professional 387 260 203 154 124 93 189 216 86 72 72 127 67 122 Charges Business Promotion 369 720 481 209 201 149 140 279 332 84 41 129 115 Expenses Directors Remuneration 793 633 561 431 362 196 192 192 192 551 81 80 80 Depreciation and 507 431 421 439 482 575 841 475 454 154 140 114 99 Amortisation Expenses Others 2,075 1,677 1,260 2,970 835 1,014 733 731 550 836 562 395 282 Provision For Standard 2,647 1,223 180 214 765 & NPA Assets Impairment on Financial 950 957 259 316 111 585 107 146 instruments Total *Under IND-AS 18,754 18,744 15,670 15,571 15,319 13,006 11,904 11,279 10,562 5,272 4,994 4,604 3,884 42#44BREAK-UP OF OPERATING EXPENSES Ⓡ Muthoot Finance Yearly (%) Quarterly (%) Mar-21 Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Q4 FY Q3 FY Q2 FY Q1 FY 2021 2021* 2021* 2021* Employee Benefit 49 52 54 47 48 49 53 52 529 Expenses Rent 12 12 13 12 12 13 14 14 12 22 42 47 53 59 12 11 13 11 Advertisement & Publicity; 6 00 6 7 5O 3 5 6 5 7 5 9 Communication Costs 2 2 2 3 2 3 3 3 2 2 2 2 2 Traveling and 1 1 2 1 1 1 2 2 2 1 1 1 1 Conveyance Printing and Stationery 1 1 1 1 1 1 1 2 2 1 1 1 1 Repairs and Maintenance 1 2 2 2 2 2 2 2 2 1 2 2 1 Legal and Professional 2 1 1 1 1 1 2 2 1 1 3 1 Charges Business Promotion 2 4 3 1 1 1 1 2 3 2 1 3 3 Expenses Directors Remuneration 3 4 3 2 2 2 2 2 10 10 2 2 2 Depreciation and 3 2 3 3 3 7 4 + 3 3 2 3 Amortisation Expenses Others 12 9 8 19 5 8 6 CO 6 5 16 11 9 7 Provision For Standard & I 17 9 2 2 7 NPA Assets Impairment on Financial 5 LO 5 2 2 2 12 2 4 instruments Total 100 100 100 100 100 100 100 100 100 100 100 100 100 *Under IND-AS 43#45Ⓡ PROFITABILITY RATIOS Yearly Muthoot Finance (%) Quarterly (%) (Based on Income) Mar-21* Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Q4 FY Q3 FY 2021* 2021* Q2 FY Q1 FY 2021 2021* Interest expense to Gross Income 34.92 $32.00 32.51 30.50 39.92 46.31 48.71 53.08 52.34 33.64 34.06 35.76 36.53 Selling, general and administrative expenses to Net Income 25.13 29.26 32.24 28.93 34.88 41.36 48.26 44.66 35.89 26.67 23.32 26.40 24.04 Provisions & Write Offs to: 1.38 1.61 0.59 5.44 8.16 6.20 1.67 1.89 3.49 0.59 3.20 0.64 0.96 Net Income Operational expenses to Net Income 26.51 30.87 32.84 34.38 43.03 47.56 49.93 46.55 39.37 27.27 26.51 27.04 25.00 OPBDT/ Net Income 73.49 69.13 67.16 65.62 56.97 52.44 50.06 53.45 60.62 72.73 73.49 72.96 75.00 Depreciation to Net Income 0.74 0.73 0.90 1.00 1.33 2.13 3.72 2.03 1.76 0.82 0.77 0.69 0.65 OPBT/Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 71.91 72.72 72.27 74.34 PBT Net Income 72.75 68.40 66.26 64.63 55.63 50.31 46.34 51.42 58.86 71.91 72.72 72.27 74.34 PAT Net Income 54.09 50.88 42.47 40.38 34.17 30.93 30.23 33.60 39.11 53.05 54.15 53.86 55.54 *Under IND-AS 44#46PROFITABILITY RATIOS Yearly 60 Ⓡ Muthoot Finance Quarterly (%) (%) (Based on Average Loan Assets) Q4 FY Mar-21 Mar-20* Mar-19* Mar-18* Mar-17 Mar-16 Mar-15 Mar-14 Mar-13: 2021* Q3 FY Q2 FY Q1 FY 2021* 2021* 2021* Interest income to avg. loan assets 22.17 23.03 21.63 22.21 21.43 19.72 19.30 20.27 21.66 21.66 22.31 22.71 22.35 Interest expense to avg. loan assets 7.93 7.51 7.16 6.92 8.69 9.25 9.52 10.84 11.38 7.39 7.77 8.37 8.41 Net Interest Margin 14.24 15.52 14.47 15.29 12.74 10.47 9.78 9.42 10.27 14.27 14.54 14.34 13.94 Other income to avg. loan assets 0.53 0.43 0.40 0.47 0.35 0.25 0.25 0.16 0.09 0.30 0.49 0.71 0.67 Net Income Including Other Income 14.77 15.95 14.87 15.76 13.09 10.72 10.03 9.59 10.37 14.58 15.03 15.04 14.61 Selling, general and administrative expenses to 3.72 4.68 4.81 5.32 4.56 4.43 4.84 4.28 3.72 3.90 3.51 3.98 3.51 avg. loan assets Provisions and write offs to 0.20 0.26 0.08 0.11 1.07 0.67 0.17 0.18 0.36 0.09 0.48 0.10 0.14 avg. loan assets PBDT to avg. loan assets Depreciation to avg. loan assets 10.85 11.01 9.98 10.33 7.45 5.62 5.02 5.12 6.28 10.59 11.04 10.96 10.96 0.10 0.11 0.12 0.15 0.17 0.23 0.37 0.20 0.18 0.11 0.11 0.09 0.10 PBT to avg. loan assets 10.75 10.90 9.85 10.19 7.28 5.39 Tax to avg. loan assets 2.76 2.79 3.54 3.82 2.81 2.08 PAT to avg. loan assets 7.99 8.11 6.31 6.36 4.47 3.32 1.62 1.71 3.03 4.65 4.93 6.10 2.05 10.48 10.93 10.87 10.86 3.22 4.05 2.75 7.73 8.14 2.79 2.77 2.75 8.10 8.11 Cash Profit to avg. loan 8.09 8.22 6.44 6.51 4.65 3.54 3.40 3.42 4.24 7.84 8.25 8.19 8.21 assets *Under IND-AS 45#47PROFITABILITY Efforts getting rewarded Profitability at a glance Ⓡ Muthoot Finance (in millions) Yearly PBT PAT Quarterly PBT PAT 55,000 50,065 50,000 45,000 45,000 40,000 40,000 40,574 37,222 35,000 35,000 30,768 30,000 30,000 28,447 30,183 25,000 25,000 19,210 20,000 20,000 15,114 13,168 19,721 17,776 15,000 11,936 15,000 13,496 13.315 10,279 11,999 10,042 11,255 10,000 11,798 9.957 7,801 10,000 9,914 8,943 8,408 8,096 5,000 6,705 5,000 0 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Mar-21* Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* *Under IND-AS 46#48NETWORTH Steady capital position Share Capital and Reserves & Surplus Ⓡ Muthoot Finance (in millions) 170,000 160,000 152,389 150,000 141,780 140,000 131,966 130,000 123,161 120,000 115,718 110,000 97,928 100,000 90,000 78,120 80,000 65,164 70,000 56,192 60,000 50,835 50,000 37,356 42,646 40,000 30,000 20,000 10,000 0 Mar 13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18* Mar-19* Mar-20* Jun-20* Sep-20* Dec-20* Mar-21* *Under IND-AS 47#49RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) В Ⓡ Muthoot Finance Quarterly (%) 55 50 555 55 50 45 45 40 40 35 35 28.05 30.15 28.26 30 27.08 28.97 28.16 30 27.77 24.81 25 22.40 25 20 19.50 19.44 20 15 14.35 15.13 15 10 5 10 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18* Mar 19* Mar 20* Mar 21* 0 *Under IND-AS Q4 FY 2021* Q3 FY 2021* Q2 FY 2021* Q1 FY 2021* 48#50Ⓡ CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio Muthoot Finance (%) Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Capital Adequacy Ratio 27.44 26.38 25.73 26.30 25.47 Tier-I 26.36 25.28 24.62 25.20 24.30 Tier-ll 1.08 1.10 1.11 1.10 1.17 49 49#51MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Ⓡ Muthoot Finance FY 2021 FY 2020 Q4 FY 2021 Q3 FY 2021 Q2 FY 2021 Q1 FY 2021 Earnings per share (7) - Basic 92.79 75.31 24.81 24.72 22.30 20.96 - Diluted 92.71 75.21 24.80 24.69 22.28 20.94 Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Book Value per share (*) 379.70 353.28 328.82 306.99 288.43 Market price per share (*)* ** 1,205.9 1,210.55 1,132.10 1,086.05 613.15 Price to Earnings ratio* *** 13.00 13.71 13.49 13.08 8.14 Price to Book Value ratio 3.18 3.43 3.44 3.54 2.13 **Source: www.nseindia.com ***Based on trailing 12 months EPS 50 50#52CAPITALISATION RATIOS Headroom for further leveraging Ⓡ Muthoot Finance (In millions) Mar-21 Dec-20 Sep-20 Jun-20 Mar-20 Outside Liabilities 482,260 485,252 440,401 404,561 388,878 Cash & Bank Balances & Investment 71,308 95,502 79,465 84,769 59,253 in MF liquid Funds Tangible Networth 152,335 141,731 131,914 123,113 115,668 Capital Gearing 2.70 2.75 2.74 2.60 2.85 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 25911 25893 25554 25430 24205 24224 23455 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 52 52#54OUR SUBSIDIARY ASIA ASSET FINANCE PLC A finance company with a golden heart Ⓡ Muthoot Finance 53#55ASIA 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 31,2021, total holding in AAF stood at 91 million equity shares representing 72.92% of their total capital. The loan portfolio stands at LKR 14,002 million as on March 31, 2021 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 48 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#56Ⓡ PRODUCTS ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance 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 55#57Ⓡ BRANCH NETWORK ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance AAF has operations in various parts of Sri Lanka providing the best services and easy access to clients Chankanai Jaffna Kilinochichi Vavuniya Udappuwa Mahiyanganaya Kegalle Ragala Puttalam Chilaw City office Wennappuwa Negombo Nawalapitiya Moratuwa Gampola Galle Kalutara (SC) Mathugama Chunnakam Nelliyadi Point Pedro Chavakachcheri Mullaitivu Puthukkudiyiruppu Oddusuddan Sammanthurai Trinco Kinniya Valaichcenai Digana Chenkaladi Batticaloa Matale Kurunegala Gampaha Chavakachcheri Colombo Hatton Kaluwanchchikudi Matara Pundoloya Thalawakele Beruwala Badulla Kalmunai Akkaraipattu Monaragala 56#58Key Financial Parameters Particulars INR/LKR Number of branches FY 2021 0.3677855 48 Ⓡ ASIA ASSET FINANCE PLC A finance company with a golden heart Muthoot Finance (LKR in millions) FY 2020 0.388758 29 427 495 Number of Employees Gross Loan AUM (LKR) 14,002 13,839 Capital Adequacy Ratio (%) 17 17 Total Revenue (LKR) 2,952 3,332 Total Expense (LKR) 2,865 3,239 Profit Before Tax (LKR) 87 93 45 70 Profit After Tax (LKR) Shareholders Funds (LKR) 2,222 2,172 Total Outside Liabilities (LKR) 13,128 12,983 Total Assets (LKR) 15,350 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 March 31, 2021, it has a loan portfolio of Rs.17,042 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. 59#61Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars (in millions) FY 2021 FY 2020 Number of branches 108 107 Number of Sales Offices 108 107 Number of Employees 301 412 Gross Loan AUM (R) 17,042 19,769 Capital Adequacy Ratio (%) 50 51 Total Revenue (*) 2,409 2,876 Total Expense (*) 2,240 2,452 Profit Before Tax () 169 424 Profit After Tax (*) 126 318 Shareholders Funds (*) 4,387 4,260 Total Outside Liabilities (*) 12,397 14,590 Total Assets (₹) 16,784 18,850 60#62Ⓡ Muthoot Homefin Muthoot Finance Business Performance Particulars Disbursement (R) Borrowings () Debt Equity Ratio (%) Yield on Advances (%) Interest Spread (%) NIM (%) Cost to Income Ratio (%) FY 2021 (in millions) FY 2020 1,010 4,127 11,846 14,185 2.7 3.33 12.51 11.77 3.41 2.29 5.13 4.40 42.16 36.06 Return on Assets (ROA) (%) 0.75 1.65 Return on Equity (ROE) (%) 2.92 7.75 Stage III Loan Assets 681 338 % Stage III assets on Gross Loan Assets (AUM) 4.00 1.71 Stage III ECL Provision 207 111 ECL Provision 261 179 ECL Provision as a % of Gross Loan Assets (AUM) 1.53 0.91 Number of Customers 22,765 24,390 61#63Financial Highlights • . • Ⓡ Muthoot Homefin Muthoot Finance Disbursements in FY 2021: Rs 1,010 mn. AUM as on Mar 31, 2021: Rs. 17,042 mn, Loan Book as on Mar 31, 2021: Rs 14,040 mn. Average Ticket Size in 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 FY 2021: 0.75%, ROE for FY 2021: 2.92% Average cost of borrowings of 9.10% for FY 2021. Capital Adequacy Ratio: 49.94%, Debt Equity Ratio: 2.70 • Average Yield: 12.51%, Interest Spread: 3.41% . Received PMAY subsidy of INR 1,103 mn for 5746 cases in FY 2021. Increasing the leverage from 2.70x 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+/Stable which indicates low risk will help in lower cost of funds. Short Term Rating : ICRA A1+ / CARE A1+ Debt/Equity ratio at 2.70 times as on Mar 31, 2021, 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#65Ⓡ 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 FY21, it has insured more than 12,10,500 lives with a First year premium collection of Rs.1000 million under Traditional, Term and Health products.. During Q4 FY20, it has insured more than 783,500 lives with a First year premium collection of Rs.660 million under Traditional, Term and Health products.. 64#66Key Business Parameters Particulars Premium Collection (*) Number of Policies Key Financial Parameters Ⓡ Muthoot Insurance Brokers Muthoot Finance (in millions) FY 2021 FY 2020 4,055 3,232 32,23,737 28,06,336 (in millions) FY 2020 Particulars FY 2021 Total Revenue (*) 467 237 Total Expense (*) 43 97 Profit Before Tax (R) 424 141 Profit After Tax (*) 316 104 Shareholders Funds () 847 531 Earnings per share (*) 422 139 65#67OUR SUBSIDIARY BELSTAR MICROFINANCE LIMITED Ⓡ Muthoot Finance 66#68Ⓡ BELSTAR MICROFINANCE LIMITED - AN OVERVIEW Muthoot Finance As of March 2021, 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 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, 2021, 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 649 branches, with 170 controlling regional offices and employs 4562 staffs. Its gross loan portfolio has grown from INR 0.20 mn in March 2009 to INR 32,999 mn in March 2021 67#69Key Financial Parameters Ⓡ Muthoot Finance (in millions) FY 2020 Particulars FY 2021 Number of Branches 649 603 Number of Employees 4,562 4,425 Gross Loan AUM (*) 32,999 26,310 Capital Adequacy Ratio (%) 22 26 Total Revenue (*) 5,532 5,007 Total Expense (*) 4,962 3,675 Profit Before Tax (*) 570 1,332 Profit After Tax (*) 467 990 Stage III Loan Assets 783 240 % Stage III assets on Gross Loan Assets (AUM) 2.37 0.91 Stage III ECL Provision 618 216 ECL Provision 980 369 ECL Provision as a % of Gross Loan Assets (AUM) 2.97 1.40 Shareholders Funds (*) 5,417 4,978 Total Outside Liabilities (*) 29,256 20,210 Total Assets (₹) 34,673 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. As on 31st March, 2021 it has a total loan portfolio of Rs.3,668 million. CRISIL assigned Long Term Debt Rating of CRISIL AA/Stable for its bank limits. 70 10#72Muthoot Money Muthoot Finance Key Financial Parameters Particulars Number of branches Number of Employees Gross Loan AUM (*) Capital Adequacy Ratio (%) Total Revenue (*) Total Expense (*) Profit Before Tax (7) (in millions) FY 2021 FY 2020 14 24 188 304 3,668 5,090 29 20 697 704 656 665 41 39 Profit After Tax (*) 37 27 Stage III Loan Assets 314 249 % Stage III assets on Gross Loan Assets (AUM) 8.56 4.89 Stage III ECL Provision 129 65 ECL Provision 172 143 ECL Provision as a % of Gross Loan Assets (AUM) 4.69 2.81 Shareholders Funds (*) 1,099 1,062 Total Outside Liabilities (*) 2,789 4,323 Total Assets (₹) 3,888 5,385 71#73OTHER SUBSIDIARIES MUTHOOT ASSET MANAGEMENT PRIVATE LIMITED Networth MUTHOOT TRUSTEE PRIVATE LIMITED Networth Ⓡ Muthoot Finance (In millions) FY 2021 FY 2020 1,072 FY 2021 10 1,053 (In millions) FY 2020 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