#1Making it HAPPEN SATIN Great Place To WorkⓇ Certified JAN 2020-DEC 2020 INDIA Investor Presentation November 2020#2Content 03-05 COVID 19 Business Update & New Initiatives 06-09 Overview and Key Performance Highlights 10-25 What makes Satin a Compelling Investment Story 26-39 Key Financial & Operational Metrices 40 - 46 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 Mar31, 2020 have been regrouped.#3Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA CoVID-19 Business Update New Initiatives#4COVID 19 Business Update Branch Operations & Centre Meetings • • . All branches were operational, and all staff has resumed work Disbursed Rs. 632 crore in Q2FY21, majorly done to existing customers with strong repayment history We have activated most of the centres Focused on cashless collection and quickly launched digital collections which have seen a good traction and scale Collection Efficiency Saw improvement in repayments and collections Month on Month 94% 85% 86% 62% • The collection efficiency trends are as follows: • - April 3%; May - 17%; June - 62%; July - 85%; August - 86%, September - 94% 17% 3% Majority of the customers have started paying instalments I April May June July August September Customers connect during COVID-19 . New "Customer Service App" launched to increase digital and financial awareness among customers and to connect with brand "SATIN" Tele-collection activity by CSS SATIN#5COVID 19 Business Update Credit Cost and Provisioning As of 30th Sep 20, on-book GNPA stood at 2.9% We have made adequate provisions against default risk of our book under moratorium and other exigencies; As on 30th Sep'20, on-book NNPA stood at -1.0% • Have made total Expected Credit Loss (ECL) of 3.9% as against our GNPA of 2.9% for on-book portfolio Capital and Liquidity SATIN Continue to maintain a healthy balance sheet liquidity with Rs. 1,962 crore of surplus funds as on 30th Sep'20, leverage of 3.6x • As of 30th Sep 20, CRAR stood at 32.33% which is well above regulatory requirements, having a robust ALM position • • Have undrawn sanctions worth Rs. 1,063 crore as on 30th Sep'20. More loan applications in advanced stage of processing • During 1HFY21, the Board of Directors of the Company, considered and approved the fund raising by way of the Rights Issue of Rs. 120 crore. The Company has successfully raised Rs. 120 crore via Rights Issue of partly paid equity shares in the ratio of 48:125. The issue was oversubscribed at 123% The Company has made first call of Rs.15 per share on application and balance amount would be called via one or more subsequent calls as may be determined by the Board/Committee of the Board, from time to time Socially Responsible At The Time of COVID - 19 • Contribution to PM Cares Fund and CM Relief Fund in Assam • Distribution of Ration Kits and other essential items for CoVID and Flood affected districts in Bihar and West Bengal • Distribution of Masks and other safety items 5#6Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Overview and Key Performance Highlights#7Key Business Performance Highlights SATIN India's leading NBFC-MFI with 31.1 lacs customers, 1,255 branches, 377 districts and 23 states, with Assets Under Management (AUM) of Rs. 7,667 crore for Q2FY21 Successfully closed Rights Issue of Rs. 120 crore in Aug 20, great response with oversubscription of 123% Percentage of Promoter pledge has gone down from 52.88% in Dec'18 to 8.9% as on date Undergoing various measures for cost optimization, viz. branch and RO merger, staff optimization, operating leverage and cost reduction Awarded Certificate of Excellence in Clean Energy Finance, in line with our commitment towards a better tomorrow Implemented cashless disbursements across 100% branches - 11% of collection via cashless mode in Sep 20, adopting entirely new and digital Awarded Companies with Great Manager award and National Best Employer Brands in NBFC Sector; Awarded 8th Rank In "Dream Companies to Work For" measures Satin Housing Finance Ltd (SHFL), AUM of Rs. 164 crore, Standalone credit rating of CARE BBB (Stable). 9 active lenders including refinance facility from NHB Taraashna Financial Services Ltd (TFSL), AUM at Rs. 639 crores, added two new BC partners Satin Finserv Ltd, Satin's MSME arm, AUM of Rs. 120 Crore, Standalone credit rating of CARE BBB- (Stable). SFL has been brought to own in-house software now 7#8Corporate Overview Standalone - Q2FY21 Rs.13 crore PROFIT AFTER TAX 0.7% RETURN ON ASSETS 3.5% RETURN ON EQUITY 32.33% CAPITAL ADEQUACY 2.7 Lakh NO. OF LOANS DISBURSED Epon Rs.6,744 crore GROSS LOAN PORTFOLIO 32.3 Lakh LOAN ACCOUNTS OUTSTANDING S.23,000 Rs. AVERAGE TICKET SIZE 1,025 BRANCHES Rs.632 crore DISBURSEMENT 23 STATES & UT'S SATIN 8#9Corporate Overview Consolidated - Q2FY21 Rs.16 crore PROFIT AFTER TAX 4.2% RETURN ON EQUITY Rs.185 crore NET INTEREST INCOME 0.8% RETURN ON ASSETS Data for Q1FY21, RoA and RoE are calculated on annualized basis Rs. S.7,667 crore Epon GROSS LOAN PORTFOLIO Rs. 341 crore REVENUES 31.1 Lakh CLIENTS 1,255 BRANCHEES 23 STATES & UT'S SATIN 6#10Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA What makes Satin a Compelling Investment Story 10#11What 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 08 07 90 06 Ample Liquidity & Positive ALM Strong & Experienced Management Team Successfully Navigated Crisis During Legacy of 30 Years SATIN 11#121. Leading MFI player with differentiated Product Offerings Product features as on Sep'20 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 Q2FY21 Notes SATIN Business Correspondent SCNL Housing Finance SME Services 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 8 1,022* 201 14 15 6,448(5) 3,294,318 Rs. 23,000 (JLG) 639 164 120 352,340 1,637 1,205 Rs. 29,700 Rs. 1,213,000 Rs. 432,000 (Retail) (6) (1) As on Sep 20, 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. 297 crore other than MFI portfolio (6) Average Ticket Size of Retail Financing is 4.32 lacs. Overall, the average ticket size of SFL is Rs. 9.8 lacs *As of Q2FY21, there were 1,025 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 12#13With opportunities to leverage our customer reach SATIN Satin finances product purchase of solar lamps, bicycles etc. and grants loan for safe water and sanitation facilities Financing ~Rs. 100 crore during FY20 Product Financing Bicycle Loan 60,000+ loans disbursed Home Appliances 7,500+ loans disbursed Note: No. of loans disbursed during FY20 Benefits Solar Products 55,000+ loans disbursed Ooo Consumer Durables 20,000+ loans disbursed Enhances the productivity and generating potential of its clients income Enables company to leverage its rural outreach Capitalizes on company's existing network and client base Water & Sanitation 27,000+ loans disbursed No incremental cost, thus the income directly adds up to the bottom line 13#142. Diversified Geographical Presence ...serving ~32 lacs Customers across India 58% Clients with Satin as Only Lender* 31 Lacs+ No. Of Active Clients ~36 lacs No. of Loan Accounts 41% 377 No. of Districts ~84,000 No. of Villages 68 No. of Regional Offices 2.5 lacs No. of Centres 7,377 No. of First Cycle Customers* No. of Loan Officers The pictorial representation of Map of India does not purport to be the Political Map of India 10,497 No. of Employees SATIN On Consolidated basis *at the time of disbursement, data is for JLG Standalone only 14#15... Leading to increasing footprints 2. Reducing exposure to traditional regions 1. Increasing exposure to Newer states SATIN % of total GLP States FY16 Q2FY21 UTTAR PRADESH 40.9% 22.3% GLP (Rs. crore) Q2FY21 1,707 BIHAR 17.7% 16.0% 1,229 PUNJAB 12.7% 9.3% 716 MADHYA PRADESH 15.5% 8.7% 666 UTTARAKHAND 3.2% 1.5% 117 MAHARASHTRA 1.6% 1.0% 79 TOTAL 91.7% 58.9% 4,515 % of total GLP GLP (Rs. crore) States FY16 Q2FY21 Q2FY21 WEST BENGAL 0.1% 6.6% 503 RAJASTHAN 2.3% 5.3% 407 HARYANA 1.9% 3.7% 286 DELHI & NCR 2.0% 4.1% 314 % of total GLP GUJARAT 0.5% 3.5% 268 States GLP (Rs. crore) JHARKHAND 0.7% 2.2% 167 FY16 Q2FY21 Q2FY21 CHHATTISGARH 0.6% 1.1% 81 ASSAM 0.0% 4.9% 376 J&K 0.1% 0.1% 7 ORRISA 0.0% 3.6% 278 TOTAL 8.2% 26.5% 2,032 TAMIL NADU 0.0% 3.4% 264 KARNATAKA 0.0% 1.5% 112 3. Foraying into New Geographies TRIPURA 0.0% 0.9% 68 HIMACHAL 0.0% 0.1% 7 PRADESH PONDICHERRY 0.0% 0.1% 9 MEGHALAYA 0.0% 0.1% 5 SIKKIM 0.0% 0.0% 1 TOTAL 0.0% 14.6% 1,120 15#16... And de-risking geographical concentration To have become a PAN India Player Share of Top 4 States Reduced from 77% to 56% over 4 years Limiting Exposure per district 77.3 Average exposure per district % % of Top 10 Districts to AUM 67.7 12.7 -21% 10.1 56.3 27 15.5 10.2 58.6 57.7 56.3 0.45 19.2 17.7 12.9 8.4 9.6 9.3 8.8 9.3 0.35 8.7 18.1 18.3 21 19 15 15 15 17.5 16.5 16.0 0.28 0.27 0.25 40.9 29.9 26.3 FY17 SATIN 21.6 23.2 22.3 FY17 FY18 FY19 FY20 1 HFY21 FY16 FY17 FY18 FY19 FY20 1HFY21 FY19 FY20 1HFY21 UP Bihar MP Punjab FY18 Number of States with more than 1% exposure of SATIN 7 10 10 16 17 Particulars FY17 FY18 FY19 FY20 1HFY21 No. of Districts - JLG 236 306 359 397 377 % of Districts with <1% exposure % of Districts with >2% 1.0% 88.1% 92.5% 96.4% 96.5% 2.1% 96.6% 0.6% 0.5% 0.3% 188 120 88 % of Top 10 Districts to Net-worth 79 69 FY17 FY18 FY19 FY20 1 HFY21 2015 2017 2019 2020 16#173. A Difference Powered by Technological Prowess & Processes... Game Changing Digital Transformation Technology (LMS) Turn Around Time of Customer Acquisition to disbursement journey Reduced from 18 days to a few minutes Technology footprint જ Help us to be ahead of the curve to better respond to the ever-changing business scenarios SATIN 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 Real-time Dashboards Real-time CB Checks. Features enabling brand recall value (SMS, OTP, QR Code) 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 Strategic Direction for newer subsidiaries like Housing & MSME. Developed in-house software for them too In-house Customer Service App 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. 17#18Centralized Shared Services Centralized Shared Services Loan Application & KYC Collection Psychometric Test + Branch n₁ Branch n₂ CB Check Operations at Branch ABM-n₁ In case of rejection, transaction would re-flow to Branch for re- Branch ng uploading of proper documents. After 3 times of rejection, application gets rejected. Centralized Shared Service Center SATIN In case documents are proper and loan is sanctioned ✓ KYC Process followed ✓ Tele Verification Response Report ✓ Interactive Voice Response ✓ Tele Collection CGT/GRT Ready for Disbursement SATIN 18#19... 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 disbursements & collections C$ (0) Geotagging WW Reduced TAT Real-time Decision Making Faster Book Closing Enhanced Productivity ¥7 Brand image Improved Data Quality SATIN 19#204. Robust Underwriting & Full-fledged in-house Internal Audit 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 Full-fledged in-house Internal Audit 92 Zonal Auditors & Regional Auditors Feedback based Compliance Audit GO Shuffling CSOs every 9 months and transferring every 18 months to reduce human biases. Risk Officers visit customers regularly Centralized Share Services KYC verification, IVR, TVR, ensuring uniform processes SATIN 100% Digital on Audit Reports and Findings 946 Audits completed in Q2FY21 Geo-tagging of 100% branches and centers and 70% customers' houses Quarterly Audit Regional Office, Branch & Social Performance Management *** D= Account verification & Cashless Disbursements via penny drop verification along with strict KYC compliance, also cashless disbursements eliminates the cash handling risk 18 man-days field audit per auditor per month 20#215. We have a well-diversified Liability Profile... ... insulated from Capital Market Turbulence Product-wise Sep'20 25% 0% 3% 22% Lender-wise Sep'20 15% 2% 17% 50% 62% 5% Top 10 Funders Term Loan NCD Buyout ■Commercial paper ECB NABARD Indian Bank State Bank of India Bank of Baroda SIDBI Large Lender Base 61 Active Lenders SATIN % Share as on 30th Sep'20 14% 10% 7% 6% 4% IDFC First Bank 4% Standard Chartered Bank 4% Blue Orchard Microfinance Fund 4% Banks NBFC HSBC Domestic Financial Institution Bank of Maharashtra 4% 3% Overseas Fund Domestic Fund Total of top 10 lenders 60% 21#226. Strong Capitalization with Ample Liquidity Healthy CRAR to support Growth Opportunities Benefit of positive ALM continues 32.33% 30.45% 28.49% 21.18% |||| FY18 FY19 FY20 1HFY21 Static ALM as on 30th Sep 20 (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) 26.3 25.5 21.5 22.3 22.1 18.4 15.5 12.8 11.7 8.4 8.5 9.0 FY16 FY17 FY18 FY19 I Avg. maturity of Assets FY20 Avg. maturity of Liabilities 1HFY21 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 SATIN Total 1,962 1,943 2,007 1,917 1,833 1,909 1,962 183 196 259 250 202 223 1,312 64 66 82 76 60 61 409 2,208 2,206 2,348 2,243 2,094 2,192 3,683 229 168 379 381 119 182 1,458 36 31 52 29 66 37 251 265 199 431 410 185 219 1,709 1,943 2,007 1,917 1,833 1,909 1,973 1,973 *Excluding margin money deposits Rs 269.6 crore lien with Lenders and undrawn sanction in hand Rs.1063 crore as on Sep'20; Principal repayments of only on-book portfolio are factored in the cashflows 22#23With improving asset quality On-book Provisions & NNPA (Rs. crore) 133 14.9% On-book GNPA, Provisions & NNPA (%) 152 113 177 156 147 -34 -45 Mar-20 Jun-20 Sep-20 On-book Provisions & NNPA (%) 2.9% 3.3% 2.4% 5.0% 5.0% 9.9% 0.1% 4.0% 3.2% 2.9% 2.4% 1.7% 4.9% 3.4% 3.2% 3.9% 2.3% -0.2% -0.8% -1.0% Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 3.9% 60% 3.4% 3.2% 59% Provision Coverage Ratio (%) 77% 130% 134% 103% SATIN -0.1% -1.0% -0.8% Mar-20 Jun-20 Sep-20 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Sep-20 23#24Diversification 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 Satin Housing Finance Ltd (SHFL) » 100% retail book comprising of: >> >>> >>> The Acting as a business correspondent, TFSL provides credit to clients in rural and semi-urban areas on behalf of partner banks and NBFCs cashless disbursement percentage has reached almost 98% of TFSL's total disbursement for Sep 20, 2% collection through cashless mode >>> Affordable home loans - 85% Satin Finserv Limited (SFL) Incorporated in Aug'18, got license from RBI to start business in Jan'19 >>> Loan against property - 15% » Standalone credit rating of CARE BBB- (Stable) >>> Excellent portfolio quality since inception, Collection Efficiency of >99% during September » Gross Loan Portfolio of Rs. 120 crore in Q2FY21 >>> >>> TFSL has a low risk business model which is highly capital efficient Mainly caters to customers belonging to Middle and Low-Income Groups in peripherals of Tier II and below cities » CRAR for Q2FY21 is 90.53% » Total equity stands at Rs. 102.5 crore >>> CRAR of 110.09% and gearing of 1.48. Total equity stands at Rs. 80 crore » » AUM stood at Rs. 639 crore, with presence across 7 states Business focus on secured retail MSME lending, wholesale lending to small NBFC MFI and others >>> >>> The Company operates through 201 branches, has more than 3.5 lakh active loan clients AUM Rs. 164 crore with DA of Rs. 5 crore, presence across 4 states with 1,637 customers >> 15 Branches across 8 states with 1,205 active loan clients >>> Standalone rating of BBB from CARE » SFL has moved to in-house software >>> 9 active lenders including NHB refinance 24 24#25Successfully Navigated Crisis During Legacy of 30 Years Learnings from Demonetization Implementation of best-in-class technology • Reduced TAT . Real-time data Di-risking geographic concentration (No. of States) District Diversification + 7 states 23 • Enhanced Productivity . Improved monitoring and control 16 Diversifying Geographical Presence 226 Reduction in Top 4 state contribution +68% 81% 377 56% • • Increasing exposure to Newer states ~97% of Districts with <1% exposure Dec-16 Sep-20 Dec-16 Sep-20 Dec-16 Sep-20 Strong Capitalization with Ample Liquidity . Capital Adequacy has improved from 18.29% in 2016 to 32.33% currently Reduced Leverage District with <1% exposure Improved Capital Adequacy • Raised Rs. 560 crores equity capital Liquidity of Rs. 2,000 crores 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 7.0X 3.6X 97% 86% 18.29% 32.33% SATIN Dec-16 Sep-20 Dec-16 Sep-20 Dec-16 Sep-20 25#26Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Key Financial & Operational Metrices#27Key Operation Metrics Districts, States and Branches 1,2551 Employees & Loan Officers 1,383 8,152 1,163 (767 995 6,382 6,296 7,3772 23 23 4,481 13,005 22 11,831 1,495 18 1,325 16 9,004 10,4973 1,229 1,344 6,910 383 377 340 1,109 302 10,419 11,148 235 8,965 7,653 5,801 FY17 FY18 FY19 FY20 1HFY21 FY17 FY18 Districts --States Branches Satin Employees FY19 TFSL Employees FY20 1HFY21 Loan Officers Clients (lakhs) Satin TFSL 35.5 34.6 4.1 3.9 26.5 2.3 28.2 31.1 3.6 3.5 31.5 30.8 27.6 22.9 24.0 FY17 FY18 FY19 FY20 1HFY21 Gross Loan Portfolio (Rs. crore) Satin TFSL 5,757 670 7,068 604 8,174 704 7,6673 639 4,067 450 7,220 6,374 6,744 5,085 3,617 FY17 FY18 FY19 FY20 1HFY21 Note: (1) Data on Consolidated basis. On a standalone basis, the number of branches were 1,025; (2) Data on a consolidated basis. On a standalone basis the number of loan officers were 6,327; (3) Consolidated figures includes Satin Housing Finance Limited and Satin Finserv Ltd. SATIN 27#28Key Consolidated Financials Gross Income (Rs. crore) 341 366 311 Q2FY20 Q1FY21 Q2FY21 NII PAT 218 1,445 1,503 58.3% Cost to Income Ratio (%) 66.6% 57.0% 53.4% 52.5% "I FY19 FY20 FY19 FY20 Q2FY20 Q1FY21 Q2FY21 NII and PAT (Rs. crore) 185 150 54 13 16 Q2FY20 Q1FY21 Q2FY21 914 7.1% 803 201 155 FY19 FY20 Opex to GLP (%) 5.3% 4.9% 6.7% 6.3% Q2FY20 Q1FY21 Q2FY21 FY19 FY20 SATIN 28#29Key Standalone Financials Gross Income (Rs. crore) 315 345 290 Q2FY20 Q1FY21 Q2FY21 NII PAT 1,373 1,401 Cost to Income Ratio (%) 63.3% 54.9% 54.7% 50.8% 49.7% FY19 FY20 Q2FY20 Q1FY21 Q2FY21 NII and PAT (Rs. crore) 199 164 134 55 13 13 Q2FY20 Q1FY21 Q2FY21 824 6.8% 734 195 156 FY19 FY20 Opex to GLP (%) FY19 FY20 4.7% 6.5% 6.0% 5.1% lii li Q2FY20 Q1FY21 Q2FY21 FY19 FY20 SATIN 29#30Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Financial & Operational Details (Consolidated)#31Annexure - Business Details Business Details - Consolidated SATIN Particulars AUM (Rs. crore) On-Book AUM* Securitization Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% 7,667 7,182 6.7% 8,119 -5.6% 4,572 4,140 4,653 39 113 46 Assignment 1,699 1,662 2,009 Business Correspondence 473 612 519 TFSL Business Correspondence 639 591 677 SHFL - Housing Finance 164 116 144 SFL 120 62 118 AUM Mix (Rs. crore) 7,667 7,182 6.7% 8,119 -5.6% MFI Lending 5,959 5,504 6,349 Product Financing 15 16 26 MSME 297 282 287 Business Correspondence - IndusInd Bank 473 612 519 TFSL Business Correspondence 639 591 677 SHFL - Housing Finance 164 116 144 SFL 120 62 118 No. of Branches 1,255 1,299 -3.4% 1,355 -7.4% SCNL TFSL SHFL SFL 1,025 1,073 1,117 201 203 208 14 9 15 15 14 15 *includes securitization, differences due to rounding off 31#32Annexure - P&L Statement - P&L Statement - Consolidated Particulars (Rs. crore) Revenue SATIN Q2FY21 Q2FY20 YoY% Q1FY21 QoQ % FY20 FY19 YOY% Interest and Fee Income DA Income Treasury Income 251 BC Fees བྲྀ ཙ བ བ 238 258 994 1,116 44 57 14 236 133 33 20 117 95 30 12 127 87 Other Operating Income 3 9 7 29 13 Total Revenue 341 366 -7.1% 311 9.5% 1,503 1,445 4.0% Expenses Finance Cost 156 149 Employee Benefit Expenses 82 89 160 79 589 642 Credit Cost & FLDG for BC 53 16 23 351 305 33 223 58 Other Expenses 20 33 17 111 110 Depreciation and amortization expense 4 4 4 18 13 Total Expenses 314 291 293 1,292 1,129 Profit Before Tax 26 75 75 -65.1% 17 53.2% 212 316 -33.0% Tax expense 11 21 4 57 114 Profit after Tax 16 54 -71.4% 13 21.6% 155 201 -23.1% Other comprehensive income net of taxes -12 4 5 45 25 Total Comprehensive Income 4 58 -93.8% 18 -80.2% 200 227 -11.9% 32#33Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Financial Details (Standalone)#34Annexure - Financial Performance - Standalone SATIN Particulars (Rs. crore) Gross yield (1) Financial Cost Ratio (2) Net Interest Margin (3) 1HFY21 Q2FY21 Q2FY20 Q1FY21 FY20 FY19 17.30% 18.07% 21.44% 16.08% 20.61% 23.97% 8.78% 8.67% 9.05% 8.64% 8.49% 11.15% 8.52% 9.40% 12.39% 7.44% 12.12% 12.81% Operating Expense ratio (4) 5.00% 5.14% 6.80% 4.72% 6.02% 6.51% Loan Loss Ratio (5) 2.38% 2.95% 0.85% 1.76% 2.97% 0.96% ROA (6) 0.71% 0.72% 3.26% 0.72% 2.26% 3.01% ROE (8) 3.47% 3.45% 16.46% 3.52% 12.00% 19.08% Leverage (Total Debt (7) / Total Net Worth) 3.64 3.64 3.60 3.62 3.72 4.55 Cost to Income Ratio 58.61% 54.74% 54.92% 63.34% 49.66% 50.83% Asset Quality (on-book) GNPA % ECL as % of AUM 1HFY21 Q2FY21 Q2FY20 Q1FY21 FY20 FY19 2.9 2.9 4.4 2.4 3.3 4.0 3.9 3.9 2.6 3.2 3.4 2.3 12345678 2. 3. 4. 5. 6. 1. Gross Yield represents the ratio of total Income in the relevant period to the average AUM 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 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) 34#35Annexure - P&L Statement- Standalone SATIN Particulars (Rs. crore) Revenue Interest and Fee Income DA Income Q2FY21 Q2FY20 YOY% Q1FY21 QoQ% FY20 FY19 YoY% 241 233 248 966 1,113 44 57 14 236 133 Treasury Income 18 31 19 112 91 BC Income 7 17 3 62 25 Other Operating Income 5 8 5 25 11 Total Revenue 315 345 -8.9% 290 8.6% 1,401 1,373 2.0% Expenses Finance Cost 151 146 156 577 639 Employee Benefit Expenses 70 76 67 297 265 Credit Cost & FLDG for BC 51 14 32 202 55 Other Expenses 17 30 15 97 97 Depreciation and amortization expense 3 4 3 15 11 Total Expenses 292 269 272 1,188 1,067 Profit Before Tax Tax expense Profit After Tax Other comprehensive income net of taxes Total Comprehensive Income ཀླུ ཋ ཤཱ 23 76 -70.3% 17 30.4% 213 306 -30.3% 10 21 5 57 111 13 55 -76.6% 13 -0.4% 156 195 -19.9% -12 3 5 45 25 1 58 -98.3% 18 -94.5% 201 220 -8.8% 35#36Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Financial Details (Subsidiaries)#37Annexure - P&L Statement - TFSL Particulars (Rs. crore) Revenue Total Revenue Expenses Finance Cost Employee Benefit Expenses Credit Cost Q2FY21 Q2FY20 Q1FY21 FY20 FY19 18.2 10.2 10.4 69.8 68.3 1.1 0.9 0.9 3.2 2.5 8.9 8.5 8.5 38.3 35.3 0.5 0.8 0.8 13.4 5.7 Other Expenses 2.7 1.6 1.6 14.4 11.1 Depreciation and amortization expense 0.4 0.4 0.4 1.7 1.1 Total Expenses 13.6 12.2 12.2 71.0 55.7 Profit Before Tax 4.6 -1.8 -1.8 -1.2 12.6 Tax expense Profit After Tax 1.1 -0.5 -0.5 -0.2 4.1 3.5 -1.3 -1.3 -1.0 8.4 Other comprehensive income net of taxes -0.2 0.0 0.0 0.3 0.1 Total Comprehensive Income 3.3 -1.3 -1.3 -0.7 8.5 SATIN 37#38Annexure - P&L Statement - SHFL Particulars (Rs. crore) Revenue Interest and Fee Income Treasury Income Other income Total Revenue Expenses Q2FY21 Q2FY20 Q1FY21 FY20 FY19 5.6 3.9 5.1 16.8 4.5 0.3 0.5 0.4 1.9 1.0 0.3 0.2 0.1 2.3 1.6 6.2 4.6 5.7 21.0 7.1 Finance cost 3.1 1.7 3.3 8.3 1.1 Employee benefit expenses 2.3 2.3 2.4 9.7 4.8 Credit Cost 1.8 0.1 0.1 1.2 0.3 Other expenses 0.5 0.8 0.4 2.5 2.3 Depreciation and amortization expenses 0.1 0.1 0.1 0.5 0.1 Total Expenses 7.8 4.9 6.2 22.2 8.6 Profit Before Tax -1.6 -0.3 -0.5 -1.2 -1.5 Tax expense -0.4 -0.1 -0.2 -0.3 -0.3 Profit After Tax -1.3 -0.2 -0.4 -0.9 -1.2 Other comprehensive income Total Comprehensive Income -1.3 -0.2 -0.4 -0.9 -1.2 SATIN 38#39Annexure - P&L Statement - SFL Particulars (Rs. crore) Revenue Interest and Fee Income Treasury Income Other income Total Revenue Expenses Finance cost Q2FY21 Q2FY20 Q1FY21 FY20 5.57 2.28 5.78 13.59 0.14 0.09 0.15 0.24 0.31 0.02 0.06 0.18 6.02 2.39 5.99 14.02 1.03 0.34 0.99 1.76 Employee benefit expenses 1.61 1.74 1.68 6.67 Credit Cost 1.83 0.13 0.51 1.46 Other expenses 0.82 1.01 0.64 3.13 Depreciation and amortization expenses 0.05 0.01 0.04 0.11 Total Expenses 5.33 3.24 3.86 13.14 Profit Before Tax SATIN 0.68 (0.85) 2.13 0.88 Tax expense (DTA) 0.17 (0.15) 0.53 0.24 Profit After Tax 0.51 (0.69) 1.60 0.65 Other comprehensive income 0.02 0.00 0.05 Total Comprehensive Income 0.53 (0.69) 1.64 0.65 39#40Great Place Το WorkⓇ Certified JAN 2020-DEC 2020 INDIA Company Background#41Key milestones: Crossed the USD 1 billion AUM mark 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 Date of inception of Satin- October 16, 1990 1996 IPO and listing on DSE, JSE and LSE (1) 1998 Registers as NBFC with the RBI 2008 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 41#42Key milestones: Crossed the USD 1 billion AUM mark 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 42#43Who we are Formation of Groups Follow up loans 06 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 & Digital Lending Large marquee institutional investor base Comfortable liquidity and CRAR CREATING A NICHE BY BEING A ONE STOP FINANCIAL SERVICES PROVIDER FOR OUR CUSTOMERS 43#44... With focus only on Micro-Finance Products SATIN Income Generation Loan (Prarambh) Ticket Size : Rs. 8,000 Rs. 30,000 Tenure: 12/24 months Long Term Loan (Vriddhi) Ticket Size : Rs. 31,000 Rs. 50,000 Tenure: 24 months Product Financing/Wash Loan Ticket Size : Rs. 1,099 Rs. 15,000 Tenure: 6-9 months Emergency Loan (Pragati) Ticket Size : Rs. 10,000 - Rs. 30,000 Tenure : 24 months • Household Income: Rural-Rs. 1.25 Lacs & Urban/Semi-Urban- Rs. 2 Lacs • Outstanding (incl. applied loan): <=1.0 Lacs Eligibility Criteria • Satin can be 3rd lender & 2nd MFI • CSS . No loans given to delinquent customers . OTP validation 44#45Making 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 local administration and strengthened connect with clients Health Check-up Camps 5 Free health check-up camps for the community in Assam and Odisha বিনামলীয়া স্বাস্থ্য পরীক্ষা শিবির স্যাটিন ক্রেডিটকেয়াৰ নেটৱৰ্ক লিমিটেড Organlaod to GNRC Hospital SCNL was awarded an appreciation letter from 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 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 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 45 45#46Awards and Accolades ◉ Mr. HP Singh, CMD, was conferred the 'Golden Globe Tiger Awards' at an 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 November 2018 Got sA social rating from Microfinanza December 2018 January 2019 Won the "SKOCH Award" for Digital Transformation Received "C1" grade in Code of Conduct Assessment from ICRA July 2019 Moved up in "Fortune The Next 500" =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 WE ARE SATIN November 2019 Awarded "Company with Great Manager" February 2020 Won "National Best Employer Brand" "Dream Companies to Work For" GREAT PLACE TO WORK - CERTIFIED™M Building and Sustaining High-Performance™ Culture Great Place To WorkⓇ Certified JAN 2020-DEC 2020 INDIA 46 46#47Contact Information Company (Investors & Media): Ms. Aditi Singh Head Investor Relations & Corporate Communication - E: [email protected] T: +91 124 4715 400 (Ext - 222) www.satincreditcare.com SATIN