#1SATIN Investor Presentation June 2021#2Content 03-11 12-15 COVID-19 Business Update & New Initiatives Overview and Key Performance Highlights 31-44 Key Financial & Operational Metrices 16-30 What makes Satin a Compelling Investment Story 45 - 52 Company Background SATIN Cautionary Statement Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest and other costs. The Company does not undertake any obligation to update forward- looking statements to reflect events or circumstances after the date thereof. Based on revised returns filed by the company, some items for the year ended Mar 31, 2020 have been regrouped.#3COVID-19 - Business Update & New Initiatives#4Strengthening Business Despite Challenging FY21 Collection Efficiency . Post unlock in Dec'20, collection efficiency improved to 105% in Mar'21(including arrears) Cumulative collection efficiency for FY21 stood at 94% Collection Efficiency in Apr 21 stood at 93% Top four geographies which constitute 54% of the AUM had a collection efficiency of 98% for FY21 Witnessing gradual recovery in collections in other geographies Fund Raise • Bolstered capital position by successfully closing the Rights Issue of Rs. 120 crore in Aug'20 with an overwhelming response. Issue was oversubscribed at 123%. Out of this Rs. 120 crore raised, ~Rs. 90 crore already received by the Company (Rs.45 per share out of Rs. 60). Subsequent amount to be called as deemed fit by the Board • During FY21, the Company raised debt of Rs. 4,312 crore including Direct Assignment Transactions of Rs. 743 crore • Raised USD 5 million from Development Bank of Austria through ECB channel and Rs. 25 crore from a private bank in Q1FY22 Total fund raised YTD is Rs. 62 crore in Q1FY22 Disbursement Disbursement temporarily stopped in May'21 because of lockdown due to second wave of Covid The Company is closely monitoring external factors like overall economic environment The Company has maintained a cautious stance in new disbursement as our main focus is to maintain asset quality For FY21, disbursement stood at Rs. 4,982 crore on consolidated basis. As things improve, we expect disbursement to pick up in the coming quarters SATIN#5Strengthening Business Despite Challenging FY21 Provisions The Company has made a cumulative on-book provision of Rs. 289 crore, of which Rs. 44 crore has been recognized by the Company as at 31 March 2021 on account of significant increase in credit risk on customers given additional support by the Company which were impacted due to Covid-19 • Maintained adequate provisions and write offs for bad loans, expect a write back in the coming quarters • On-book GNPA stood at 8.4% while NNPA stood at 3.3% on standalone basis Guidance FY21 was a challenging year for the Micro-Finance Industry as a whole • Considering the various challenges faced due to Covid-19 Pandemic and the resultant lockdowns, the Company had guided for flattish growth and no commitment on profits in FY21 However, the Company has witnessed 2.5% growth in AUM. 9MFY21 had a PAT of Rs. -52 crore, Q4FY21 contributed a PAT of Rs. 38 crore, thus resulted in PAT of Rs. -14 crore in FY21 Taking Care of Satin Family Satin Sahyog to support families of employees who pass away due to Covid-19 or accidental death Covid insurance for Satin staff to help with medical expenses and facility to provide oxygen concentrator and nurses at home for infected Satin staff Facilitation of Covid-19 vaccination for all our employees. The organization will cover the vaccination cost of two mandated vaccine shots for all the employees as part of its focus on health and wellness The initiative is aimed to safeguard the well-being of our employees from Covid-19 which has crippled the nation Numbers are on a consolidated basis except otherwise stated SATIN 5#6Strengthening Business Despite Challenging FY21 Promoter Pledge Over the course of the year, the promoter group has reduced significant percentage of pledge of their shareholding Percentage of Promoter pledge has decreased from 52.88% in Dec'18 to 3.09% on fully diluted basis as on date Cashless Collection • Implemented cashless disbursement across 100% branches - 8% of collection via cashless mode, adopted website payment option and UPI auto debit To drive financial inclusion and boost cashless transactions in the country, SCNL has made loan repayments more seamless for its customers by introducing UPI AutoPay, first in the industry to launch Clean Energy Certification SCNL's clean energy programme is an illustration of its dedication to serve the society responsibly by providing customized financial solution • More than one lacs clean energy loans were disbursed • Awarded Certificate of Excellence in Clean Energy Finance as a part of the UNFCCC Clean Development Program (CDM), in line with our commitment towards a better tomorrow SATIN 6#7Witnessed Significant Improvement in Collection Efficiency Witnessed Month on Month Improvement in Collection Efficiency during FY21 | Cumulative collection efficiency for FY21 is 94% Collection efficiency including arrears in Mar'21 stood at 105% 98% Dec-20 Note: *Data on standalone basis for JLG on-book portfolio 97% 96% 105% Jan-21 Feb-21 Mar-21 ■Dec-20 Jan-21 ■Feb-21 ■Mar-21 SATIN 7#8Backed by Substantial Reduction in % of Non-Paying Customers Reduction in % Portfolio of Non-Paying Clients * . 90.6% clients have paid all instalments in Mar'21 Significant drop in number of non-paying clients from 11% in Sep'20 to 1.3% in Mar'21 Disbursement in FY21 represent 70% of total AUM with PAR of 0.7% till Mar'21 2.3% 2.0% 1.9% 1.3% Feb-21 Mar-21 Dec-20 Jan-21 Dec-20 Jan-21 Feb-21 Mar-21 Note: *Data on standalone basis for JLG on-book portfolio SATIN 8#9Business approaching Pre- Covid levels Rs. 8,379 cror GROSS LOAN PORTFOLIO Rs. 2,376 crore DISBURSEMENT in Q4FY21 AUM witnessing steady state growth 30.5 lacs ACTIVE CUSTOMERS (During the Quarter added 120,556 number of new borrowers) 1,257 NO. OF BRANCHES Disbursement gradually approaching Pre-Covid Levels 914 8,174 8,119 8,379 7,667 7,880 731 7,284 227 954 939 1,104 923 972 289 894 2,516 7,220 7,181 6,390 6,744 6,907 7,275 1,904 22 222 SATIN 792 607 198 291 239 85 1,624 2,084 632 Q3 FY20 Q4 FY20 Q1 FY21 Standalone AUM (Rs. Crs.) Q2 FY21 Q3 FY21 AUM of Subsdiaries (Rs. Crs.) Q4 FY21 Q3 FY20 Q4 FY20 Q1 FY21 Standalone Disbursment (Rs. Crs.) Q2 FY21 Q3 FY21 Q4FY21 I Disbursement by Subsdiaries (Rs. Crs.) Avg Monthly Disbursement Standalone Information: . GLP grew by 5.3% Q-o-Q Rs. 7,275 crore, signifying recovery • • Disbursement grew by 28.3% Q-o-Q in Q4FY21 to Rs. 2,084 crore We have witnessed recovery in our collection efficiency in Q4FY21, which stood at 105% as on Mar 21 (incl. OD) On Consolidated basis except otherwise mentioned 6#10Update on Subsidiaries - SHFL Satin Housing Finance Limited Monthly disbursement have picked up and started showing progressive recovery despite Covid, AUM grew by 63% in FY21 FY21 disbursement stood at Rs. 118 crore Healthy CRAR of 90.16% as on 31st March 2021 10 lenders including NHB refinance Hv SHFL had 2 successive profitable quarters despite challenging business environment, PAT for FY21 stood at Rs.1.4 crore SATIN Satin Housing Finance Ltd. No restructuring or moratorium of any loan THE ANSWER IS HOME Impressive collection efficiency for FY21 at 99.6% 10#11Update on Subsidiaries - TFSL & SFL TAROOSHNA ✓ Collection Efficiency for Mar'21 stood at 93% Taraashna Financial ✓ No restructuring of any loan, 16% clients availed moratorium CARVING YOUR FUTURE Services Limited ✓ Disbursement increased by 15% YoY in Q4FY21, added two new BC partners ✓ Sourcing business for SCNL & SFL under Nai Roshni SFL Satin Finserv Limited Satin Finserv Limited ✓ Second profitable year of operations in spite of the overhang of Covid Pandemic ✓ AUM growth of 18% in FY21 ✓ Healthy CRAR of 81.37% ✓ GNPA of 1.5% ✓ 3% clients opted for complete moratorium and 9% loans restructured SATIN 11#12Overview and Key Performance Highlights#13Key Highlights I I I I I T I Share of New Disbursement in FY21 as % of Total AUM New disbursement made in FY21 (post-Covid) contribute 70% of the total loan portfolio as on 31st Mar'21 with PAR1 at 0.7% | I 70% 30% Pre-Covid Portfolio Post-Covid Portfolio Share of Non-MFI Loan Portfolio as % of Total AUM Share of Non-MFI Portfolio was 8% of total AUM as on 31st Mar’21, in-line with the company's stated strategy of moving towards a balanced mix of secured and unsecured lending 92% 8% SATIN Non MFI Portfolio MFI Portfolio 13#14Corporate Overview Standalone - FY21 S.4,394 DISBURSEMENT crore 13.3 Lacs NO. OF LOANS DISBURSED 29.8 Lacs LOAN ACCOUNTS OUTSTANDING 25.3% CAPITAL ADEQUACY (0.18%) RETURN ON ASSETS Above Data is for FY21 Epion Rs.7,275 crore C GROSS LOAN PORTFOLIO 23 STATES & UT'S 1,011 BRANCHES Rs. (14) crore PROFIT AFTER TAX Rs.33,000 AVERAGE TICKET SIZE (0.92%) RETURN ON EQUITY SATIN 14#15Corporate Overview Consolidated Rs. 1,374 REVENUES 30.5 Lacs c crore Rs. 742 crore NET INTEREST INCOME Above Data is for FY21 CLIENTS (0.18%) RETURN ON ASSETS Epion - FY21 S.8,379 Rs. crore GROSS LOAN PORTFOLIO 1,257 BRANCHES (0.95%) RETURN ON EQUITY 23 STATES & UT'S Rs. (14) crore PROFIT AFTER TAX SATIN 15#16What makes Satin a Compelling Investment Story#17What makes Satin a Compelling Investment Story Leading MFI Player With Differentiated Product Offerings Diversified Geographical Reach 01 02 03 Technology Prowess 04 Robust Underwriting Processes 05 Well-diversified Liability Profile 06 90 Ample Liquidity & Positive ALM 08 07 Strong & Experienced Management Team Successfully Navigated Crisis During Legacy of 30 Years SATIN 17#181. Differentiated Product Offerings Product features as on Mar'21 Start Date Ticket Size Range Tenure Frequency of Collection No. of States/UTS No. of Branches AUM (Rs. crore) No. of loan accounts Avg. Ticket Size for Q4FY21 Notes SATIN SCNL Business Correspondent Services Housing Finance SME MFI(1) Taraashna Financial Services Limited (2) Satin Housing Finance Limited (3) Satin Finserv Limited (SFL)(4) May'08 (JLG) Upto Rs. 50,000 May'12 Feb'18 Mar'19 Upto Rs. 50,000 Rs. 100,000 4,000,000 Rs. 100,000 100,000,000 - (JLG Microfinance) 6-24 months Bi-Weekly 12 24 months Bi-Weekly 24 240 months Monthly 12 120 months Monthly/Quarterly 23 7 1,008* 6,964(5) 2,977,764 Rs. 37,000** (JLG) 8 217 14 15 748 226 131 390,809 2,413 1,725 Rs. 34,000 Rs. 1,125,000 Rs. 331,500 (Retail) (6) (1) As on Mar 21, included MFI Lending (loans under JLG model, IndusInd BC and water & sanitation) and Product Financing (Loans for solar lamps, cycles) (2) TFSL acquisition is effective Sep 1, 2016 (3) Satin Housing Finance Ltd was incorporated on April 17, 2017 (4) SFL was incorporated on August 10, 2018 (5) SCNL also has MSME portfolio of Rs. 310 crore other than MFI portfolio (6) Average Ticket Size of Retail Financing is 3.31 lacs. Overall, the average ticket size of SFL is Rs. 7.58 lacs *As of Q4FY21, there were 1,008 branches with Microfinance operations & 27 branches with MSME operations. Out of the 27 MSME branches, 24 of them also had microfinance operations & 3 were unique **Focus on repeat clients with established credit history 18#19With opportunities to leverage our client reach SATIN Satin finances product purchase of solar lamps, bicycles etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 67 crores during FY21 Product Financing Bicycle Loan 4,471 loans disbursed Home Appliances 6,950 loans disbursed Note: No. of loans disbursed during FY21 Benefits Solar Products Enhances the productivity and generating potential of its clients income 5,987 loans disbursed Consumer Durables 21,422 loans disbursed Enables the Company to leverage its rural outreach Capitalizes on the Company's existing network and client base Water & Sanitation 26,819 loans disbursed No incremental cost, thus the income directly adds up to the bottom line 19#202. Diversified Geographical Presence ...serving ~31 lacs clients across India 60% Clients with Satin as Only Lender* ~31 lacs No. of Active Clients ~34 lacs No. of Loan Accounts 29% No. of First Cycle Clients* 388 No. of Districts 84,000 No. of Villages 74 No. of Regional Offices 2.5 lacs No. of Centres 8,090 No. of Loan Officers 12,726 No. of Employees SATIN On Consolidated basis 20 The pictorial representation of Map of India does not purport to be the Political Map of India *at the time of disbursement, data is for JLG Standalone only. Focus on existing clients with established credit history 20#21... Leading to increasing footprints 2. Reducing exposure to traditional regions 1. Increasing exposure to Newer states SATIN % of total GLP States FY16 FY21 GLP (Rs. crore) FY21 Uttar Pradesh 40.9% 21.0% 1,757 Bihar 17.7% 15.6% 1,310 Punjab 12.7% 8.7% 732 Madhya Pradesh 15.5% 8.7% 727 Uttarakhand 3.2% 1.4% 116 Maharashtra 1.6% 1.3% 106 Total 91.7% 56.7% 4,749 % of total GLP GLP (Rs. crore) States FY16 FY21 FY21 West Bengal 0.1% 6.8% 567 Rajasthan 2.3% 5.4% 454 Delhi & NCR 2.0% 4.3% 356 Gujarat 0.5% 4.1% 344 % of total GLP Haryana 1.9% 3.7% 313 States GLP (Rs. crore) FY16 FY21 Jharkhand 0.7% 2.2% 187 FY21 Chhattisgarh 0.6% 1.3% 112 Tamil Nadu 0.0% 4.2% 350 J&K 0.1% 0.1% 5 Odisha 0.0% 347 4.1% Total 8.2% 27.9% 2,339 Assam 0.0% 4.0% 335 Karnataka 0.0% 1.8% 154 3. Foraying into New Geographies Tripura 81 0.0% 1.0% Pondicherry 0.0% 0.1% 10 Himachal Pradesh 0.0% 0.1% 7 Meghalaya 0.0% 0.1% 5 Sikkim 0.0% 0.0% 2 Total 0.0% 15.4% 1,291 21#22And de-risking geographical concentration To remain a PAN India Player Share of Top 4 States Reduced from 77% to 54% Limiting Exposure per district Average exposure per district % % of Top 10 Districts to AUM 77.3 -43% 10.1 67.7 58.6 10.2 56.3 54.0 19.2 0.45 12.9 8.4 9.6 8.8 66 63 8.7 9.3 8.7 18.1 18.3 17.5 16.5 15.6 29.9 26.3 21.6 23.2 21.0 FY17 FY18 FY19 0.35 0.28 0.25 0.26 21 19 15 15 14 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 UP Bihar MP Punjab Number of States contributing more than 1% to Total AUM 7 10 10 16 18 SATIN Particulars FY17 FY18 FY19 FY20 FY21 No. of Districts - JLG 236 306 359 397 388 % of Districts with <1% exposure 88.1% 92.5% 96.4% 96.5% 95.8% % of Districts with >2% 2.1% 1.0% 0.6% 0.5% 0.5% 188 120 88 888 % of Top 10 Districts to Net-worth 79 71 2015 2017 2019 2021 FY17 FY18 FY19 FY20 FY21 22#233. A Difference Powered by Technological Prowess & Processes... • • Game Changing Digital Transformation Technology (LMS) LMS Online real-time system Last Mile Connectivity on Tabs Greener (paperless environment) Event based mapping of Geo Location & Tracking Penetration Instant Bank Account Verification Core Accounting & Financial System Cashless Disbursement @100% branches API centric multiple cashless collection processing in the system (AEPS, Debit Card, Net Banking, UPI, QR Code) Real-time Dashboards Real-time CB Checks Features enabling brand recall value (SMS, OTP, QR Code) Cross sell disbursal module with real-time partner inventory tracking HR Management Module (employee creation, transfer, attendance, exit, leave management etc.) . . . • Turn Around Time of Customer Acquisition to disbursement journey Reduced from 18 days to a few minutes Technology Footprint Employee Fraud Detection & Recovery Module Lender Fund Allocation Module Funder Borrowing Module BC subsidiary also using the same technology & leveraging the same benefits Centralized Shared Service centre introduced within SATIN; to create unified support model across Business Reporting / End User Applications Support & Managed Infrastructure Developed in-house software for subsidiaries like Housing & MSME too In-house Customer Service Application for MFI business & Help us to be ahead of the curve to better respond to the ever-changing business scenarios Gold Standard Information Security Our company is the first MFI to be certified with ISO 27001:2013, which affirms the prevalence of robust ISMS specifying the requirements for establishing, implementing, maintaining and continually improving ISMS within the organisation This certification indicates SATIN has integrated a robust ISMS in its business processes & exemplifies that information security and client confidentiality are part of the cornerstones of SATIN's strategic objectives SATIN 23#24... Leading to Operating Efficiency & Scalability New initiatives... ...leading to improved processes Centralized processes KYC Compliance & Real- time Credit Bureau checks Auto bank reconciliation using API Penny drop verification Cash less disbursement & collection C$ (0) Geotagging WW Reduced TAT Real-time Decision Making Faster Book Closing Enhanced Productivity ¥7 Brand image Improved Data Quality SATIN 24#254. Robust Underwriting & Full-fledged in-house Internal Audit SATIN GO Robust Underwriting Real-time Credit Bureau checks to track loan history of the prospective clients, also created own Credit Bureau scorecard for individual clients for better screening Rotating Responsibility Shuffling CSOs every 9 months and transferring every 18 months to reduce human biases. Risk Officers visit clients regularly Centralized Share Services KYC verification, IVR, TVR, ensuring uniform processes Full-fledged in-house Internal Audit 117 Zonal Auditors & Regional Auditors 100% Digital on Audit Reports and Findings Feedback based Compliance Audit 986 Audits completed in Q4FY21 Geo-tagging of 100% branches and centers and 92% clients' houses *** D= Account Verification & Cashless Disbursement via penny drop verification along with strict KYC compliance, also cashless disbursement eliminates the cash handling risk Quarterly Audit Regional Office, Branch & Social Performance Management 18 man-days field audit per auditor per month 25#265. We have a well-diversified Liability Profile... ... insulated from Capital Market Turbulence Product-wise Mar'21 0.5% 19.6% 3.7% 26.5% 49.6% Lender-wise Mar'21 15.3% 17.8% 1.6% 6.9% Term Loan NCD Buyout ■Commercial paper ECB Top 10 Lending Partners Indian Bank Large Lender Base 64 Active Lenders NABARD IDFC First Bank State Bank of India SATIN % Share as on 31st Mar'21 13% 11% 7% 6% Bank of Baroda 5% Blue Orchard Microfinance Fund 5% AAV S.A.R.L. SIDBI 4% 3% Standard Chartered Bank 3% Banks NBFC 58.0% Domestic Financial Institution Overseas Fund HSBC Domestic Fund Total of Top 10 lenders 3% 60% 26#276. Strong Capitalization with Ample Liquidity Healthy CRAR to Support Growth Opportunities Benefit of Positive ALM Continues 30.5% 28.5% 25.3% 21.2% illi FY18 FY19 FY20 FY21 Static ALM as on 31st Mar 21 (Rs. Crore) Inflows Liquidity at the beginning of month' Principal - Loan portfolio * Interest Loan portfolio Total (A) Outflows Principal repayments Interest repayments Total (B) Cumulative Mismatch (A-B) 21.5 26.3 24.9 22.3 22.1 15.5 14.5 11.7 8.5 9.0 FY17 Apr-21 May-21 Jun-21 FY18 I Avg. maturity of Assets Jul-21 SATIN FY19 FY20 FY21 I Avg. maturity of Liabilities Aug-21 Sep-21 Total 1,469 1,594 1,686 1,591 1,602 1,694 1,469 247 175 228 257 265 283 1,455 95 59 72 75 73 72 446 1,811 1,828 1,986 1,923 1,939 2,049 3,370 176 114 323 285 186 286 1,370 41 29 72 36 59 63 301 217 143 395 321 245 349 1,671 1,594 1,686 1,591 1,602 1,694 1,699 1,699 *Excluding margin money deposits of Rs. 284 crore lien with lenders and undrawn sanction in hand of Rs.143 crore as on Mar'21 27#28Diversification with allied product offerings TAROOSHNA T CARVING YOUR FUTURE Satin™ Housing Finance Ltd. THE ANSWER IS HOME SFL Satin Finserv Limited SATIN » Taraashna Financial Services Ltd - TFSL Acting as a business correspondent, TFSL provides credit to clients in rural and semi-urban areas on behalf of partner banks and NBFCs >>> The cashless disbursement percentage has reached ~97% of TFSL's total disbursement for Mar'21; 2% collection through cashless mode Satin Housing Finance Ltd (SHFL) >> 100% retail book comprising of: >> Affordable home loans - 79% Satin Finserv Limited (SFL) Incorporated in Aug'18, got license from RBI to start business in Jan'19 Standalone credit rating of CARE BBB- (Stable) Loan against property - 21% >>> Gross Loan Portfolio of Rs 131 crore >> Excellent portfolio quality since inception, Collection Efficiency of 100% during FY21 CRAR for Q4FY21 is 81.4% >>> TFSL has a low-risk business model which is highly capital efficient >>> >>> AUM stood at Rs 748 crore, with presence across 7 states Mainly caters to clients belonging to Middle and Low-Income Groups in peripherals of Tier II and below cities >>> Total networth stands at Rs 106.5 crore Business focus on secured retail MSME lending >>> >>> The Company operates through 217 branches, and has more than 3.9 lacs clients CRAR of 90.2% and gearing of 1.5x. Total equity stands at Rs 95 crore » >>> Total AUM Rs 226 crore including DA of Rs 16 15 Branches across 8 states with 1,725 active loan clients SFL has migrated to in-house software >>> TFSL will now source business for SCNL & SFL under Nai Roshni crore >> Two consecutive profitable quarters despite challenging business environment » Standalone rating of BBB (Stable) from CARE 28#29Successfully Navigated Crisis During Legacy of 30 Years Learnings from Demonetization Implementation of best-in-class technology • Reduced TAT . Real-time data Enhanced Productivity Improved monitoring and control Diversifying Geographical Presence • Increasing exposure to Newer states De-risking Geographic Concentration (No. of States) District Diversification 16 + 7 states 23 . . 95.8% of Districts with <1% exposure Uttar Pradesh share brought down from 40.9% in Dec'16 to 21.0% in Mar'21 Dec-16 Mar-21 Strong Capitalization with Ample Liquidity . Capital Adequacy has improved from 18.3% in 2016 to 25.3% currently Raised Rs 560 crore equity capital • Liquidity of over Rs 1,460 crore Strategic Changes • Diversified out of unsecured MFI portfolio by floating subsidiaries in • housing and MSME finance Changed center meeting to bi-weekly • Process re-engineering • Strengthened management team Reduced Leverage 7.0x 226 Reduction in Top 4 State Contribution +72% 81% 388 Dec-16 Mar-21 54% Dec-16 Mar-21 Improved Capital Adequacy 25.3% 18.3% 4.1x SATIN Dec-16 Mar-21 Dec-16 Mar-21 29#30Key Financial & Operational Metrices#31Key Operation Metrics Districts, States and Branches Employees & Loan Officers 1,2571 8,0902 1,383 8,152 1,163 (767 6,382 6,296 995 23 23 4,481 22 13,005 12,726³ 11,831 18 1,495 16 1,325 1,790 9,004 383 388 6,910 1,344 340 302 1,109 235 10,419 11,148 10,612 7,653 5,801 FY17 FY18 Districts FY19 FY20 FY21 FY17 FY18 --States Branches Satin Employees FY19 TFSL Employees FY20 FY21 Loan Officers Clients (lacs) Satin TFSL 35.5 34.6 30.5 4.0 3.7 28.2 26.5 3.9 4.1 3.5 31.5 30.8 26.6 22.9 24.0 FY17 FY18 FY19 FY20 FY21 Gross Loan Portfolio (Rs. crore) Satin TFSL 5,757 670 7,068 604 8,174 704 8,3793 748 4,067 450 7,220 7,275 6,374 5,085 3,617 FY17 FY18 FY19 FY20 FY21 Note: (1) Data on Consolidated basis. On a standalone basis, the number of branches were 1,011; (2) Data on a consolidated basis. On a standalone basis the number of loan officers were 6,511; (3) Consolidated figures includes Satin Housing Finance Limited and Satin Finserv Ltd. as well. SATIN 31#32Key Consolidated Financials 1,445 803 FY19 201 Gross Income (Rs. crore) Cost to Income Ratio (%) 1,503 FY20 NII and PAT (Rs. crore) 914 FY19 FY20 155 1,380 53.4% 52.5% FY21 NII FY19 742 PAT 6.7% FY21 -14 FY20 Opex to Avg GLP (%) 60.6% FY21 6.3% 5.4% FY19 FY20 FY21 SATIN 32#33Key Standalone Financials 1,373 734 FY19 Gross Income (Rs. crore) Cost to Income Ratio (%) 1,401 FY20 NII and PAT (Rs. crore) 824 195 156 FY19 FY20 50.8% 1,273 49.7% FY21 FY19 NII 6.5% PAT 655 FY21 -14 FY20 Opex to GLP (%) 6.0% 57.7% FY21 5.2% FY19 FY20 FY21 SATIN 33#34Financial & Operational Details (Consolidated)#35Annexure - Business Details - Consolidated Particulars AUM (Rs. crore) On-Book JLG AUM* Securitization Assignment Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% 8,379 8,174 2.5% 7,880 6.3% 5,660 4,621 5,333 72 46 28 1,375 2,056 1,216 Business Correspondence 256 543 362 TFSL - Business Correspondence 748 704 646 SHFL - Housing Finance (on-book) 226(1) 139 200(2) SFL 131 111 127 AUM Mix (Rs. crore) 8,379 8,174 2.5% 7,880 6.3% MFI Lending 6,685 6,380 6,253 Product Financing 24 30 11 MSME 310 267 280 Business Correspondence - IndusInd Bank 256 543 362 TFSL Business Correspondence 748 704 646 SHFL - Housing Finance 226 139 200 SFL No. of Branches 131 111 127 1,257 1,383 -9.1% 1,252 0.4% SCNL TFSL SHFL 1,011 1,140 1,021 217 213 202 14 15 14 SFL 15 15 15 15 Note: * Includes securitization, differences due to rounding off 1) The portfolio also includes Assigned portfolio of Rs.16 crore 2)) The portfolio also includes Assigned portfolio of Rs.5 crore SATIN 35#36Annexure - P&L Statement - Consolidated Particulars (Rs. crore) FY21 FY20 YoY% Q4FY21 Q4FY20 YoY% Q3FY21 QoQ% Revenue Interest and Fee Income 1,076 994 297 257 270 DA Income 112 236 54 85 0 Treasury Income 71 117 13 23 18 BC Fees 88 127 31 35 24 Other Operating Income 32 29 14 10 8 Total Revenue 1,380 1,503 -8.2% 408 409 -0.2% 321 27.3% Expenses Finance Cost Employee Benefit Expenses 638 589 163 139 159 337 351 94 90 82 Credit Cost & FLDG for BC 302 223 57 127 159 Other Expenses 98 111 37 30 24 Depreciation and amortization expense 15 18 4 5 3 Total Expenses 1,390 1,292 7.6% 355 391 -9.2% 427 -16.9% Profit Before Tax -10 212 -104.6% 53 18 195.1% -106 -147.2% Tax expense 4 57 15 5 -26 Profit after Tax -14 155 -109.0% 38 13 189.1% -80 -147.2% Other comprehensive income net of taxes -35 45 18 33 -47 Total Comprehensive Income -49 200 -124.5% 56 46 21.2% -127 -144.2% SATIN 36#37Financial Details (Standalone)#38Annexure Financial Performance - - Standalone Particulars (Rs. crore) Q4FY21 Q4FY20 Q3FY21 FY21 FY20 Gross yield (1) 21.18% 22.07% 17.21% 17.57% 20.61% Financial Cost Ratio(2) Net Interest Margin (3) 8.88% 7.95% 9.02% 8.52% 8.49% 12.30% 14.12% 8.19% 9.04% 12.12% Operating Expense ratio (4) 6.37% 6.32% 5.34% 5.22% 6.02% Loan Loss Ratio (5) 2.58% 6.81% 9.25% 3.96% 2.97% ROA (6) 2.18% 0.72% -4.34% -0.18% 2.26% RoE(8) 11.95% 3.49% -22.84% -0.92% 12.00% Leverage (Total Debt (7) / Total Net Worth) 4.09 3.72 4.41 4.09 3.72 Cost to Income Ratio 51.76% 44.76% 65.21% 57.74% 49.66% Asset Quality (on-book) GNPA % ECL as % of AUM Q4FY21 Q4FY20 Q3FY21 FY21 FY20 8.4 3.3 9.6 8.4 3.3 5.1 3.4 5.7 5.1 3.4 1 2 3 4 5 6 200 1. Gross Yield represents the ratio of total Income in the relevant period to the average AUM 2. 3. Financial Cost Ratio represents the ratio of interest Expense in the relevant period to the Average AUM Net Interest Margin represents the difference between the Gross Yield and the Financial Cost Ratio 4. 5. 6. Operating Expenses Ratio represents the ratio of the Operating Expenses (expenses including depreciation but excluding Credit Cost and interest Expense) to the Average AUM Loan Loss Ratio represents the ratio of credit cost (including FLDG on BC) to the Average AUM RoA is annualized and represents ratio of PAT to the Average Total Assets 7. Total Debt includes Securitization and preference shares considered as debt in accordance of IndAS 8. RoE is annualized and represents PAT(Post Preference Dividend) to the average equity (i.e., net worth excluding preference share capital) SATIN 38#39Annexure Particulars (Rs. crore) - P&L Statement - Standalone FY21 FY20 YoY% Q4FY21 Q4FY20 YOY% Q3FY21 QoQ % Revenue Interest and Fee Income 1,031 966 284 247 259 DA Income 110 236 53 85 Treasury Income 66 112 12 21 17 17 BC Income 35 62 15 14 10 Other Operating Income 30 25 12 6 8 00 Total Revenue 1,273 1,401 -9.1% 375 376 294 Expenses 27.8% Finance Cost Employee Benefit Expenses 618 577 157 135 154 281 297 77 75 68 Credit Cost & FLDG for BC 287 202 46 116 158 Other Expenses 84 97 33 28 20 Depreciation and amortization expense 13 15 4 5 3 Total Expenses 1,283 1,188 -8.0% 316 359 -11.9% 403 -21.6% Profit Before Tax -10 213 59 17 250.9% -109 Tax expense 4 57 17 4 -27 Profit After Tax -14 156 43 12 242.4% -82 Other comprehensive income net of taxes -35 45 19 33 -47 Total Comprehensive Income -48 201 61 46 34.8% -129 SATIN 39#40Financial Details (Subsidiaries)#41Annexure - P&L Statement - TFSL Particulars (Rs. crore) Revenue Total Revenue Expenses Finance Cost Employee Benefit Expenses Q4FY21 Q4FY20 Q3FY21 FY21 FY20 17.7 22.2 13.1 59.3 69.8 1.3 0.8 1.2 4.5 3.2 12.5 9.4 9.2 39.1 38.3 Credit Cost Other Expenses 10.3 -0.3 11.3 13.4 4.2 3.3 7.7 2.4 10.0 14.4 Depreciation and amortization expense 0.4 0.4 0.4 1.5 1.7 27.7 22.5 12.9 66.3 71.0 Total Expenses Profit Before Tax Tax expense Profit After Tax -10.0 -0.3 0.2 -7.0 -1.2 -2.7 -0.1 0.1 -2.0 -0.2 -7.3 -0.4 0.1 -5.0 -1.0 Other comprehensive income net of taxes 0.0 0.2 0.0 -0.2 0.3 Total Comprehensive Income -7.3 -0.2 0.1 -5.2 -0.7 SATIN 41#42Annexure - P&L Statement - SHFL Particulars (Rs. crore) Revenue Interest and Fee Income Treasury Income Other income Total Revenue Expenses Q4FY21 Q4FY20 Q3FY21 FY21 FY20 8.1 5.4 6.6 25.8 17.1 0.0 0.3 0.0 0.3 1.6 2.4 0.8 0.6 3.5 2.3 10.5 6.5 7.2 29.6 21.0 Finance cost Employee benefit expenses Credit Cost 3.8 2.9 3.6 13.6 8.3 3.2 3.1 2.7 10.5 9.7 -0.2 0.9 -1.6 0.1 1.2 Other expenses 1.1 0.0 0.9 2.9 2.5 Depreciation and amortization expenses 0.1 0.1 0.1 0.4 0.5 Total Expenses 7.9 7.1 5.6 27.5 22.2 Profit Before Tax 2.6 -0.6 1.6 2.1 -1.3 Tax expense 0.8 -0.1 0.4 0.7 -0.3 Profit After Tax 1.9 -0.5 1.2 1.4 -1.0 Other comprehensive income 0.0 0.0 0.0 0.0 0.0 Total Comprehensive Income 1.8 -0.5 1.2 1.4 -1.0 SATIN 42#43Annexure Particulars (Rs. crore) Revenue Interest and Fee Income Treasury Income Other income Total Revenue Expenses - P&L Statement - SFL Q4FY21 Q4FY20 Q3FY21 FY21 FY20 6.5 5.7 5.9 23.8 13.6 0.1 0.1 0.1 0.4 0.2 0.1 0.1 0.1 0.6 0.2 6.6 5.9 6.1 24.8 14.0 Finance cost Employee benefit expenses 1.2 0.7 1.1 4.4 1.8 2.1 2.1 1.8 7.1 6.7 Credit Cost 0.1 0.6 0.9 3.3 1.5 Other expenses 0.9 0.4 0.9 3.3 3.1 Depreciation and amortization expenses 0.1 0.1 0.1 0.3 0.1 Total Expenses 4.3 3.9 4.8 18.4 13.1 Profit Before Tax 2.3 2.0 1.3 6.4 0.9 Tax expense (DTA) 0.6 0.5 0.3 1.7 0.2 Profit After Tax 1.7 2.5 1.0 4.8 0.6 Other comprehensive income -0.0 0.0 0.0 0.0 0.0 Total Comprehensive Income 1.6 2.5 1.0 4.8 0.6 SATIN 43#44Company Background#45Key milestones Business Timeline 2016 2017 2018 2019 2020 Started MSME Lending in FY17; Acquired TFSL in Sep'16 Reaches 27.1 lacs active clients and AUM of Rs. 4,882 crore by Dec'17 SHFL commenced lending in Feb18; BC agreement with IndusInd Bank, reached AUM of Rs. 5,757 crore by Mar'18 Received NBFC license for Satin Finserv Ltd for MSME business; reached AUM of 1 Bn USD; TFSL became wholly owned subsidiary Received the Award of "Great Place to Work" 2015 2014 2013 2012 2010 Listing on NSE, BSE and CSE (2); Received top MFI grading of MFI 1 Reaches 8 lacs active clients and AUM of Rs.1,056 crore as on Mar'14; Reaches 4.9 lacs active clients & AUM of Rs. 580 crore as on Mar'13; Converts to NBFC- MFI in Nov '13; Received 'MFI 2+'rating by CARE Starts SHG bank linkage program in Rewa, MP; Receives 83% in microfinance COCA audit Reaches 1.7 lacs active clients and gross AUM of Rs.169 crore as on Mar'10 1990 1996 1998 2008 Date of inception of Satin- October 16, 1990 IPO and listing on DSE, JSE and LSE (1) Registers as NBFC with the RBI Started JLG Model in May 2008 2009 JLG business shows strong asset quality and large potential to scale up Note: 1. Regional Stock Exchanges (DSE - Delhi Stock Exchange, JSE - Jaipur Stock Exchange, LSE- Ludhiana Stock Exchange); (2) BSE - BSE Limited, NSE - National Stock Exchange of India Limited, CSE - The Calcutta Stock Exchange Limited SATIN 45#46Key milestones Fund Raising Timeline 2015 2016 2017 2018 Raised Rs. 41.5 crore from SBI FMO(3) (including warrants); Rs.37.9 crore infused by Promoter Group Raised Rs. 250 crore via QIP in Oct'16; Exit of DMP in Jul'16 and ShoreCap in Aug'16 In Apr'17, raised $10 mn from ADB (4); Investment of Rs. 35 crore by IDFC First Bank (then Capital First); Raised Rs. 150 crore via QIP in Oct'17 Pref. Allotment: Equity funding by NMI (Rs. 20 crore), and Kora Cap (Rs. 80 crore); Promoter invested via FCW (Rs. 60 crore), IndusInd invested Rs. 45 crore via OCCRPS 2013 2012 2011 2010 2009 2019/20 Exit of MV Mauritius ■ Raised Rs. 120 crore by Rights Issue 2008 Raised Rs. 30 crore from DMP, ShoreCap and MV Mauritius Ltd; Rs.11 crore infused by Promoter Group; Exit of Lok Capital " Raised floating rate long term unsecured Tier II debt in Jul'14; Raised Rs. 28.4 crore of equity from NMI and $10 mn of debt from World Business Capital as ECB Raised Rs. 18 crore from Danish Micro Finance Partners K/S (DMP) in Feb'11 Raised Rs. 2.5 crore from Lok Capital in Nov 10 and Rs. 21.8 crore from ShoreCap Il in Dec'10; Rs. 7.7 crore infused by Promoter Group Raised Rs. 1.9 crore from Lok Capital First private equity investment Raised Rs. 4.87 crore from Lok Capital; Rs. 1 crore infused by Promoter Group Note: (3) SBI FMO Emerging Asia Financial Sector Fund Pte. Limited; (4) ADB - Asian Development Bank SATIN 46 46#47Our Business Model Formation of Groups Follow up loans 06 90 Centre Meeting and Collection Process 05 Documentation and Paper work 01 02 MICROFINANCE... & BEYOND Income Generating Loans (IGL) Long Term Loans (LTL) Training of Groups 03 04 Housing Finance Micro Small & Medium Enterprises (MSME) Loan Sanction Visionary Management backed by Professional Team Established track record of delivery through vast branch network Strong client relationship built on transparent practices & internal controls Low-risk lending aimed at income generation Diversification by product & geography Proprietary IT platform & Technology prowess SATIN Social impact financing of solar lamps, bicycles, water and sanitation facilities etc. Business Correspondence Large marquee institutional investor base Comfortable liquidity and CRAR CREATING A NICHE BY BEING A ONE-STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS 47#48... With Customised Products as per Client Needs Income Generation Loan (Prarambh) Ticket Size : Rs. 10,000 Rs. 30,000 Tenure : 24 months Long Term Loan (Vriddhi) Ticket Size: Rs. 30,000 - Rs. 50,000 Tenure: 24 months Product Financing/Wash Loan Ticket Size : Rs. 799 Rs. 17,999 - Tenure : 3-18 months • Household Income: Rural-Rs. 1.25 Lacs & Urban/Semi-Urban- Rs. 2 Lacs • Outstanding (incl. applied loan): <=Rs. 1.25 Lacs Eligibility Criteria • Satin can be 3rd lender & 2nd MFI • OTP validation • Credit scorecard SATIN 48#49Making a Difference to the Community Supporting Local Communities During COVID-19 Pandemic Distributed masks, ration and hygiene kits across districts in Punjab during COVID pandemic. Reached out to more than 3000 households. Outcome- Appreciation by the local administration and strengthened connect with clients Health Check-up Camps 5 Free health check-up camps in Assam and Odisha বিনামলীয়া স্বাস্থ্য পরীক্ষা শিবির স্যাটিন ক্রেডিটকেয়াৰ নেটৱৰ্ক লিমিটেড Organlaod to GNRC Hospital SCNL was awarded an appreciation letter from the District Collector, Dibrugarh (Assam) for our COVID relief initiatives in the district PALLA GOPAL JHA, IAS DEPUTY COMMISSIONERE DISTRICT MAGISTRATE, DIBRUGARH Dear Sir/Madam, DO No DCM-1/2020/36 Date: 11/07/2020 As we continue to fight against the outbreak of COVID-19, I take this opportunity to express my heartfelt gratitude to you and all other members of your organization who actively participated in the campaign of reaching out to the weaker/marginalized section of the society of the district in a bid to provide them relief materials in this bour of unprecedented crisis to make them believe that everybody will be taken care of whatever way possible. I reckon the kind of relief activities your organization have taken up rather rendered during the lockdown period will definitely inspire others to come forward to work in tandem with the District Administration to beat the challenges together that we are encountering due to this Coxid-19 Coronavirus panderaic Satin Credit Care, Dibrugarh Phone: (0173) 23 003 (0)1 2310062 R 2006 года Yours sincerely, Pr (Pallar Copal Jha, IAS) Appreciation by the local administration and strengthened connect with clients टू फोकस SATIN टू फोकस सैटिन क्रेडिटकेयर ने 1500 से ज्यादा परिवारों को हाइजीन किट और बच्चो को स्टेशनरी का बितरण किया ! Fixe 10073) 2318034 (0/2313800 (R) E-mail: de-brigat@ncin मोगा 16 अक्तूबर 2020 (प्रदीप सचदेवा) : भारतीय रिजर्व बैंक द्वारा मान्यता प्राप्त सैटिन क्रेडिटकेगर पंजाब में एक अग्रणी माइक्रोफिनस है जिसने द्वारा पुराना टू फोकस बदनीकला, बरमला और संगरूर के कई गाँव में 1500 से શ્રી महिलाओं को और उनके बच्चों को स्टेशनरी का वितरण किया है। वैश्विक आपदा कोविंद -19 को ध्यान में रखकर विशेष रूप से इस किट को तैयार किया गया है जिसमे मास्क और साबुन है। इसके अलावा बच्चे अभी स्कूल नहीं जा सकते है तो उनके पड़ने के लिए पेंसिल, शार्पनर, रखर और नोट पेट भी है। मैटिन क्रेडिटकेटर ने पहले भी अलग अलग जगहों पर CSR के तहन ऐसे किट महिताओं को वितरित किया है और साथ में उन्हें स्वच्छता और सम्बन्धी जानकारी भी दिया है। यह संस्था पिछले 10 वर्षों से पंजाब के सभी जिलों में 3 लाख से ज्यादा महिलाओं को तोन देकर उन्हें आत्मनिर्भर बनाने का कार्य कर रही है। कोविद -19 के कारन नहा गांव की महिलाओं का रोजगार बंद पड़ा हुआ है ऐसे में सैटिन क्रेडिटवेयर ने महिलाओं को फिर से तीन वितरण करना आरम्भ कर दिया है जिससे महिलावे अपना बंद पड़ हुआ व्यवसाय को पुनः शुरूआत कर सकेंगे। उस संस्था की सबसे खास बात यह है की यहाँ से महिला कुछ गिनी रखे 10000 से 50000 तक का लोन अपना व्यवसाय चलाने के लिए ले सकती है। Financial Empowerment Workshops Relaunched Financial Empowerment Workshops in a different format in the wake of COVD-19 - shorter duration and smaller gathering. Distributed ration and stationary kits. Relief Work post Amphan Cyclone- West Bengal Reached out and provided ration kits to around 5000 households in the aftermath of the Amphan Cyclone. Undertook relief work in the most affected 150 villages in our operation area. Flood & Cyclone Relief Initiatives Flood relief camps in West Bengal, Assam and Bihar CARE NETH BRANCH OFFICE DOMJL ডোমজু Building a Difference to Make a Difference 49 49#50Awards and Accolades Mr. HP Singh, CMD, was conferred the Best CEO of the Year at 'Golden Globe Tigers" virtual awards ceremony in Malaysia Mr. HP Singh received the 'Exemplary Leader' Award Mr. HP Singh received Business Leader of the Year Award in NBFC Sector at World HRD Congress by ET Now SATIN November 2018 Got sA social rating from Microfinanza Great Place To December 2018 Won the "SKOCH Award" for Digital Transformation January 2019 Received "C1" grade in Code of Conduct Assessment from ICRA July 2019 Moved up in Work® Certified "Fortune The Next 500" MAR 2021-FEB 2022 INDIA July 2019 Got 1st Prize in September 2019 Customer Service Index by MFIN "Outstanding Contribution to Water and Sanitation Lending" from Sa-Dhan and Water.org February 2021 SCNL Annual Report FY20 "ranked 17 worldwide" at Vision Awards by LACP, USA March 2021 Re-certified as "Great Place to Work" =November 2019 Awarded "Company with Great Manager" February 2020 Won "National Best Employer Brand" "Dream Companies to Work For" April 2021 Featured in "India's 30 Best Workplaces in BFSI-2021" 50#51ESG Snapshot SATIN • Environment Water and Sanitation (WASH) Loans SCNL has been constructively working towards safe water and sanitation in around 120 districts and more than 30,000 villages in 5 states of Assam, Bihar, Chhattisgarh, Uttar Pradesh and West Bengal In the FY21, SCNL disbursed a total of 26,819 WASH loans post reactivation in Oct'20 • Clean Energy Loans . More than 1 lakhs clean energy loans were disbursed SCNL's clean energy programme is an illustration of its dedication to serve the bottom of pyramid section of society by providing customized financial solution • • Social Our strength lies in our ground level knowledge and the strong bond that we have created with our stakeholders SCNL is reaching its borrowers through a suite of financial and non-financial services, tailored to meet their needs, including lending under Joint Liability Group model, loans to individual businesses, product financing, community level initiatives, financing household level toilet and water facility Almost all of SCNL clients are women, 75% of whom are based in rural hinterlands of India • Around 72% of the clients are from BPL category • Number of Board Meetings Conducted during the FY21: 10 Average attendance rate at the Board and Board committee meetings (%): 100% approx. Number of Board Committee Meetings Conducted during the FY 2020-21: Audit Committee-8, Risk Management Committee- 3, Nomination and Remuneration Committee-5, Stakeholders Relationship Committee- 1, Corporate Social Responsibility Committee- 2, IT Strategy Committee- 2, Rights Issue Committee-5, Working Committee Meeting-46 Governance SUSTAINABLE DEVELOPMENT GOALS 1 NO POVERTY AND WELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 2 SSS ZERO HUNGER 3 GOOD HEALTH 6 CLEAN WATER AND SANITATION 7 AFFORDABLE AND CLEAN ENERGY 8 12 CONSUMPTION RESPONSIBLE 13 CLIMATE ACTION AND PRODUCTION DECENT WORK AND ECONOMIC GROWTH M 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 10 REDUCED INEQUALITIES 11 SUSTAINABLE CITIES AND COMMUNITIES LIFE 14 BELOW WATER 15 LIFE ON LAND 16 PEACE, JUSTICE AND STRONG INSTITUTIONS 17 PARTNERSHIPS FOR THE GOALS SCNL and the UN Sustainable Development Goals 51#52Contact Information Company (Investors & Media): Ms. Aditi Singh Head Investor Relations & Corporate Communication - E: [email protected] T: +91 124 4715 400 (Ext - 7004) www.satincreditcare.com SATIN