#1SHRIRAM Finance On a journey to become the most preferred Financial Services destination 2 March 31, 2023 "god DOO DE#2Company Overview Business Model/Competitive Strengths Market Dynamics & Growth Strategy Organizational Structure Performance Track Record Recent Performance - Q4 FY23 Shriram Housing Finance (SHFL) Consolidated Numbers 3 7 SHRIRAM Finance 10 15 15 24 24 34 =4 48 57 2#3COMPANY OVERVIEW#4Company Snapshot Leading player in organized high yield pre-owned CV financing segment and Two-wheeler segment. SHRIRAM Finance Diversified Portfolio - PCV's, Construction Equipment, Tractor Financing, Personal loans, Gold Loans, MSME Finance Over 7.32 million customers Large network of 2,922 Branch offices and 732 rural centres 64,052 Employees including 49,452 Business Team Market Capitalization of Rs. 471.87 billion Fll holding of 47.13 % AUM of Rs. 1,856.8 billion Note: As on March 31, 2023 4#5Corporate History *Initial Public Offering * Tied up with Citicorp for CV financing under Portfolio Management Services (PMS) * The 1st securitization transaction by STFC *Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd. with STFC; PAT crosses Rs. 1,000 mn (2006) *Investment from *Securitised Rs. 87.57 bn during FY 2010. Successfully raised Rs. 5.84 bn through QIP with domestic & international investors. *Initiated financing of construction equipment ChrysCapital (2005) and TPG (2006) * AUM crosses Rs. 500 billion SHRIRAM Finance 1979 1984 1990 1999 2002-04 2005-06 2009 2010 2011 2013 2015-16 * STFC was * Investment established from Telco & Ashok Leyland *Preferential Allotment to Citicorp Finance (India) in 2002 *Preferential Allotment to Axis Bank and Reliance Capital in * Successfully placed Rs. 10 bn of NCD with domestic investors *Purchased hypothecation loan outstandings of commercial vehicles and construction equipments of GE Capital Services India and GE Capital Financial Services (GE) aggregating to approximately Rs. 11 bn *Introduced Shriram Automalls a dedicated platform for trading of pre- owned trucks at a fair value *FITCH upgraded long term issuer ratings to 'IND AA+' from 'IND AA' *CRISIL upgraded long-term debt instruments and bank facilities, and FD to 'CRISIL AA+/FAAA/Stable' from 'CRISIL AA/FAA+/Positive' Merger of Shriram Equipment Finance Co. Ltd with STFC 2004 5#6Corporate History * Successfully raised Rs. 13.5 Bn through issuance of 'Masala Bonds' - Senior Secured Rupee * Raised maximum permissible US$ 750 million through ECB route during the year FY 2018- 19 *AUM crosses Rs.1 trillion Bonds' listed on Denominated Singapore Stock Exchange *Raised Rs. 14.92 bn through right issue in August 2020 *Raised Rs. 36.69 bn and Rs. 16.53 bn through issuance of GMTN in Jan 2021 and March 2021 respectively. SHRIRAM Finance *Shriram City Union Finance Limited and Shriram Capital Limited merged with Shriram Transport Finance Company Limited and was renamed as Shriram Finance Limited (SFL). *The Company is a leader in organised financing of pre-owned commercial vehicles and two-wheelers. It has vertically integrated business model and finances number of products which include passenger vehicles, Construction Equipment, Farm Equipment, MSMEs Gold, Personal loan and Working Capital Loans etc. * Issue and allotment of USD 150 million Senior Secured Floating Rate Notes under the USD 3.5 bn GMTN programme 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 * Successfully raised Rs. 11.6 Bn through issuance of 'Masala Bonds' - Senior Secured Rupee Denominated Bonds' listed on Singapore Stock Exchange *Sold the controlling stake (55.44%) in its wholly owned subsidiary, Shriram Automall India Limited (SAMIL) to MXC Solutions India Private Limited (MXC). *Raised Rs. 4.9 bn through ECB in January 2020 *Raised Rs. 34.9 billion through issuance of GMTN in April 2019, Rs. 17.14 bn in July 2019, Rs. 35.4 bn in Jan 2020 * Raised Rs. 1.94 bn through issuance of NCD Tranche II in January 2020 *Raised Rs. 19.99 bn through QIP issue in June 2021 *Raised Rs. 5.0 bn through preferential allotment (2.5 bn) and conversion of warrants (2.5 bn) to Promoters. * Issuance and allotment of USD 0.475 bn 4.15 percent Senior Secured Notes due 2025 (Social Bonds) under the USD 3.500 bn GMTN programme in Jan'22. 6#7BUSINESS MODEL / COMPETITIVE STRENGTHS SHRIRAM Finance 7#8Strategic Presence In High Yield Used CV Segment CV Financing Business Model Pre-Owned Age of Truck 1 2 3 4 5 6 7 8 9 10 11 12 Lending Rates 14-16% 16-24% Target Segment Performance New 12-16% SHRIRAM Finance * Small truck owners (less than 5 trucks) with underdeveloped * Existing customer base upgrading to new trucks banking habits * AUM of approximately Rs. 932.9 bn at the end of Q4 FY23 representing 50.24% (including Used and New). LCV Vehicles Sold (Industry Data) MHCV Total FY14 FY15 FY16 432,233 382,206 383,307 200,618 232,755 302,397 632,851 614,961 685,704 714,232 FY17 FY18 411,703 516,140 616,579 302,529 340,313 390,740 FY19 FY20 FY21 492,882 FY22 FY23 407,871 475,989 603,465 224,806 160,688 240,577 359,003 856,453 1,007,319 717,688 568,559 716,566 962,468 8#9SHRIRAM Valuation Expertise & Relationship Based Model Knowledge Driven Valuation Model Critical Success Factor Valuation 00 SFL has right mix of scale and skill Awareness of load structure / business mix Vehicle Assessment Loan Amount Old CVs 60-70% LTV Ratio EMI Repayment Ability New CVs 75-80% LTV Ratio Finance Relationship Based Recovery Model Compulsory monthly visits Managing large cash collections Small Truck Operators Underdeveloped banking habits Field Officers Loan Origination Inspection & Valuation Well-aligned Financing incentives structure Customer Base Collection/Repossession 9#10MARKET DYNAMICS & GROWTH STRATEGY SHRIRAM Finance 144 ATE#11Strong Industry Potential - Commercial Vehicles Market Potential (Rs. bn) Trucks (mn) * 3,845 27% 33% 6,890 bn 10.98 mn 840 40% 2,205 SFL TARGET SEGMENT LARGEST ORGANIZED PLAYER SHRIRAM Finance Market for second hand truck financing is under penetrated with 55-60% of the market with private financiers / money lenders who charge high interest rates Stringent traffic regulations in major cities limiting movement of higher tonnage vehicles * Financing amount of Rs. 1,600 bn to be triggered through replacement demand for 1.45 mn new as well as pre-owned trucks * * Stricter emission norms and legislative pressure on banning trucks > 15 years to trigger replacement demand Freight capacity expected to grow at 1.25x GDP growth going forward ■ 0-4 years 5-10 years ■ 10+ years * SFL to benefit from exponential growth for cargo LCV's with increased penetration into rural areas 11#12Strong Industry Potential - Other Portfolio Segments Portfolio SHRIRAM Finance Market Size (FY24) Construction Equipment Passenger Vehicles Two Wheelers (Only New) Tractor Financing Automall Rs. 1,000 billion Key Driver PM Gati Shakti with transformative approach for economic growth I Rs. 5,300 billion Rs. 1,600 billion Rs. 1,260 billion NA I I Personal Mobility is preferred travel Rural Mobility is preferred travel Increasing policy thrust on agriculture Access to ready consumer base of used-CV's 12#13Transportation Model - Multiple Financing Opportunities SHRIRAM Finance Hub and Spoke Transportation Model Long Haul >800 kms Medium Haul 350-800 kms Short Haul 50-350 kms Last Mile <50 kms Load re-distributed from few large hubs in major regions of the country to large number of touch points in the hinterland CV Life Cycle: Multiple Financing Opportunities 0-5 Years National Highway 00 5-9 Years Interstate Transport 9-12 Years >12 Years Intercity Transport 00 Local Transportation 00 00 SFL EXPERTISE 13#14Growth Strategy * Strengthening presence and expanding reach * Increase penetration into rural and urban centers * Increase penetration of MSME Loan in the unorganized market to enhance market share Increased Reach & Branding Target AUM (Rs. bn) 1,857 2,822 Mar'23 Actual Mar'26 Target* New In Innovative san-al Products SHRIRAM Finance *Introduction of top-up products like finance for tyres, working capital and engine replacement * Economies of scale - incremental cost of new products is low * Opex to AUM low at 2.48% *CONSERVATIVE APPROACH IN LIGHT OF CHALLENGING MACROECONOMIC CONDITIONS SFL AUM expected to grow to Rs. 2,822 billion by end of FY'26 14#15such ORGANIZATIONAL STRUCTURE, MANAGEMENT TEAM & BOARD OF DIRECTORS SHRIRAM Finance BAY 2 SHRIRAM ONE STOP BAY#16Well-entrenched Pan India Network Geographical Units Urban Semi-urban Rural Total SHRIRAM (GU) Branches GU1 Puducherry Geographical Units (GU) Branches Finance Urban Semi-urban Rural Total GU5 Total 7 7 14 Tamil Nadu 73 196 383 652 GU1 Total 73 203 390 666 GU2 Assam Chhattisgarh Karnataka 11 16 27 5 17 50 72 24 63 129 216 Andhra Pradesh 30 114 153 297 Kerala 4 20 84 108 Odisha 23 28 51 Telangana 46 54 100 200 Manipur - 1 1 GU2 Total 76 191 281 548 Meghalaya - 1 1 GU3 Sikkim - 1 2 3 Bihar Goa Jharkhand Maharashtra 16 40 39 95 Tripura 2 2 4 3 3 West Bengal 14 24 21 59 13 21 12 46 GU5 Total 47 140 304 491 50 77 146 273 Uttar Pradesh 33 90 53 176 Grand Total 394 1,010 1,518 2,922 Uttarakhand 10 9 19 GU3 Total 112 238 262 612 GU4 Dadra and Nagar Haveli 1 1 Delhi 15 - 15 Gujarat 22 50 39 111 Haryana 3 41 17 61 Himachal Pradesh 4 27 31 Jammu and Kashmir 1 3 10 14 Madhya Pradesh Punjab Chandigarh Rajasthan 27276 60 108 190 28 18 53 - 2 - 14 86 238 52 61 281 127 605 GU4 Total 2,922 Branch Offices 7.32 mn Customers 64,052 Employees 49,452 500 732 16 Business Team Private Financiers Rural Centres#17Professional Management Team with Vast Industry Experience Umesh Revankar Executive Vice- Chairman Y. S. Chakravarti Managing Director and CEO • · SHRIRAM Finance Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years and has shouldered various responsibilities and worked in several key roles of business operations. Holds a degree in MBA Finance. Appointed as Executive Vice-Chairman of SFL. Currently, Managing Director and CEO of SFL. He is a Commerce graduate from Andhra University Started his career in Shriram Chits Pvt. Ltd., Andhra Pradesh in June 1991 as an executive trainee, and rose to the position of Chief Executive by 1998 He served as the Managing Director and CEO of Shriram City Union Finance Limited prior to merger with STFC. Has been working in the Shriram Group for about three decades. Parag Sharma Whole Time Director, Joint Managing Director and CFO • Holds a degree in BCOM (Hons), Grad CWA. He had been a dynamic, successful and accomplished Chief Financial Officer of STFC for the past several years. He is an expert in handling matters related to Finance & Accounts, MIS, Resource Mobilisation, Treasury Management, Planning and Budgeting, Corporate Strategy and relationships with Rating agencies, Banks, Investors, Regulators, etc S. Sunder Joint Managing Over 32 years experience in finance industry. • Director Accounts & Admin Joined in 1995 and now heads the Accounts and Administration function, a qualified Cost Accountant. 17#18Professional Management Team with Vast Industry Experience SHRIRAM P. Sridharan Joint Managing Director Joined in 1996. Over 26 Years experience in Shriram. Holds a degree in BSC and MBA. Nilesh Odedara • Joined in 1997. Joint Managing Director Holds a degree in BBA. Over 26 Years experience in Shriram. Sudarshan Holla Joint Managing Director G. M. Jilani Joint Managing Director Joined in 1991. Holds a degree in BBM and MBA. Over 32 Years experience in Shriram Joined Shriram Group in 1992. Over 31 Years experience in Shriram. Holds a degree in BSC. Finance 18#19Professional Management Team with Vast Industry Experience K. Srinivas Joint Managing Director Joined Shriram Group in 1992. . Over 30 Years experience in Shriram. SHRIRAM Finance R. Chandrasekar CCO and Joint Managing Director U. Balasundara Rao Company Secretary Holds a degree in B Com, MBA from Pune University. Commerce Graduate, a Fellow of Cost and Management Accountants of India. Has been serving the Shriram Group for more than 3 decades in the areas of Finance, Accounts and other back office functions. He served as the CFO of Shriram City Union Finance Limited prior to merger with STFC. Appointed Chief Compliance Officer of SFL. Joined in 1994. Is a qualified Company Secretary, AICWA and an Engineering Graduate Over 27 Years experience in industry Hozefa Ghasia Head of Internal Audit Joined in 2009. Holds a degree in B.Com and is ACA, Certified Internal Auditor and CISA Over 31 Years experience in industry 19#20Professional Management Team with Vast Industry Experience Hardeep Singh Tur Chief Risk Officer Sanjay K. Mundra President - Investor and Media Relations • Joined in 1991. Holds a degree in B. Com Over 32 Years experience in industry Over 32 years experience in the finance Industry. Joined in 2007, a qualified Company Secretary. SHRIRAM Finance 20 20#21Board of Directors Jugal Kishore Mohapatra Chairman S Sridhar Independent Director . SHRIRAM Finance Holds M.A. (Economics) from Delhi School of Economics and Post Graduate in Economics from Boston University, USA IAS, Odisha Cadre, Currently, non-executive Chairman of India International Bullion Exchange IFSC Limited (IIBX) and Nominee Director of Foundation for development of Rural Value Chains and an independent Director of Urban Mass Transit Company Limited. Appointed as Chairman and Independent Director of SFL. Currently, he serves as an Independent Director on the Boards of various companies, and also as a consultant to financial services companies. Former Chairman & Managing Director of Central Bank of India, with nearly four decades of experience in commercial and development banking out of which 13 years were at the CEO/Board level. Pradeep Kumar Panja Independent Director Holds Masters degree in Science (Statistics) from the University of Madras. He is a Certified Associate of the Indian Institute of Bankers. Had a long and distinguished career as a Banker, retired as a Managing Director (Corporate Banking) of State Bank of India, the largest bank of the country, in October 2015. Maya Sinha Independent Director BA (Hons) in Economics and Mathematics, Masters Degree from Delhi School of Economics Founder Director of Clear Maze Consulting (Pvt) Limited and serves on the board of many companies Was a Member of The Indian Revenue Service (IRS - INCOME TAX) 21#22Board of Directors Umesh Revankar Executive Vice-Chairman Y. S. Chakravarti Managing Director and CEO Parag Sharma Whole Time Director, Joint Managing Director and CFO • SHRIRAM Finance Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years and has shouldered various responsibilities and worked in several key roles of business operations. Holds a degree in MBA Finance. Appointed as Executive Vice-Chairman of SFL. Managing Director and CEO of SFL. Holds a degree in Commerce from Andhra University Started his career in Shriram Chits Pvt. Ltd., Andhra Pradesh in June 1991 as an executive trainee, and rose to the position of Chief Executive by 1998 He served as the Managing Director and CEO of Shriram City Union Finance Limited prior to merger with STFC. Has been working in the Shriram Group for about three decades Holds a degree in BCOM (Hons), Grad CWA. He had been a dynamic, successful and accomplished Chief Financial Officer of STFC for the past several years. He is an expert in handling matters related to Finance & Accounts, MIS, Resource Mobilisation, Treasury Management, Planning and Budgeting, Corporate Strategy and relationships with Rating agencies, Banks, Investors, Regulators, etc 22#23Board of Directors SHRIRAM Finance D V Ravi Director Ignatius Michael Viljoen Director Joined CV Finance business of Shriram Group in 1992 as Head of Investment Servicing. Currently serves as Managing Director of Shriram Capital Private Limited. Spearheaded several successful M&A's for TAKE Solutions Ltd. Started his career in Strategy and Finance in 1987 with Karnataka Oil Seeds Federation, Bangalore. Commerce graduate from University of Bangalore and holds PG Diploma in Management from the Institute of Rural Management, Anand (IRMA). Head of Credit - Sanlam Pan Africa Portfolio Management, South Africa and is responsible for range of credit risk and credit portfolio management aspects across the various entities owned by the Sanlam Group outside of the Republic of South Africa. Associated with Sanlam group since 2003 and is a nominee Director of Sanlam. 23#24PERFORMANCE TRACK RECORD A SHRIRAM Finance#25Strong Financial Track Record SHRIRAM Finance P&L Metrics (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* Interest Income (Incl. Securitization) Less: Interest Expenses 64,857.9 Net Interest Income 67,852.4 132,710.3 154,441.4 164,773.1 83,703.3 81,069.8 76,366.0 78,075.4 173,346.6 191,806.2 296,396.0 91,675.6 98,645.6 126,766.0 81,671.0 93,160.6 169,630.0 Other Operating Income & Other Income 2,301.8 1,010.6 936.2 900.7 810.0 Profit After Tax 24,605.4 25,639.9 25,018.4 24,872.6 27,079.3 1,555.0 59,792.0 EPS (Rs.) 108.45 113.01 107.44 100.97 101.74 159.69 Cost to income Ratio (%) 20.63% 21.49% 23.31% 21.20% 19.89% 24.57% NIM (% on AUM) 7.52% 7.41% 7.16% 6.70% 6.62% 8.37% *Note:- The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 25#26Strong Financial Track Record SHRIRAM Finance Balance Sheet Metrics (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* - - On Books - Off Books Total AUM - New - Used - Others Total AUM Securitisation done 8,00,013.7 8,50,847.3 1,085,017.1 1,62,592.4 1,93,975.6 12,475.3 9,62,606.1 10,44,822.9 1,097,492.4 1,161,916.0 10,512.3 1,172,428.3 1,256,990.3 1,833,384.2 13,418.3 23,444.4 1,270,408.6 1,856,828.6 1,10,424.7 1,15,940.8 8,07,841.8 8,70,499.7 97,951.2 939,489.5 78,553.4 1,045,733.3 57,960.1 176,203.4 1,181,714.9 1,377,580.0 44,339.6 58,382.4 60,051.7 48,141.6 30,733.6 303,045.2 9,62,606.1 10,44,822.9 1,097,492.4 1,172,428.3 1,270,408.6 1,856,828.6 1,24,671.0 1,51,231.0 Networth 1,35,478.6 1,58,086.6 165,811.0 179,775.2 136,219.9 215,407.3 141,472.4 212,491.3 259,045.5 432,020.7 Book Value (Rs.) 598.4 698.0 793.6 852.3 958.6 1,156.6 Interest Coverage Ratio (x) 2.08 2.03 1.98 1.90 1.95 2.35 ROA (%) 2.64% 2.33% 2.17% 1.98% ROE (%) 20.78% CRAR (%) 17.38% 17.52% 20.27% 14.71% 21.99% 12.57% 22.50% 1.88% 11.14% 2.89% 14.84% 22.97% 22.61% *Note:- The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 26#27Healthy Asset Quality (as per IndAS) SHRIRAM Finance Particulars (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* Gross Stage 3 90,842.1 86,222.7 91,797.1 82,952.1 88,875.5 113,821.8 ECL provision-Stage 3 30,953.2 29,670.0 31,886.5 34,885.3 44,415.0 57,073.2 Net Stage 3 59,888.9 56,552.7 59,910.6 48,066.8 44,460.5 56,748.6 Gross Stage 3 (%) 9.39% 8.37% 8.36% 7.06% 7.07% 6.21% Net Stage 3 (%) 6.19% 5.65% 5.62% 4.22% 3.67% 3.19% Coverage Ratio (%) Stage 3 34.07% 34.41% Gross Stage 1 & 2 876,201.3 943,584.7 34.74% 1,006,319.5 42.05% 49.97% 50.14% 1,092,000.4 1,168,114.84 1,719,561.84 ECL provision-Stage 1 & 2 23,650.2 26,037.0 Net Stage 1 & 2 852,551.1 917,547.7 31,433.6 974,885.9 44,511.3 45,923.84 1,047,489.1 1,122,191.0 56,465.67 1,663,096.2 ECL provision (%) Stage 1 & 2 2.70% 2.76% 3.12% 4.08% 3.93% 3.28% *Note:- The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 27#28Access to Low Cost Funds Funding Mix as % of Overall Liabilities Retail Banks/Institutions 85.40% 87.18% 86.80% 84.76% 80.86% 77.11% 14.60% 12.82% 13.20% 15.24% 19.14% 22.89% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 SHRIRAM Finance * Strategic mix of retail deposits and institutional funding matched favorably with deployment * Access to fixed rate long term loans of 3 - 5 years due to strong relationships with public, private sector, foreign banks and institutions Securitization of loan book at regular intervals to fund new originations and maintain growth momentum Securitized assets portfolio stands at 212.5 bn and Direct Assignment Portfolio Rs. 23.4 bn at the end of Q4 FY23 28#29Credit rating as on March 31, 2023 Credit Rating Agency CARE CARE CARE CRISIL CRISIL CRISIL CRISIL CRISIL CRISIL Fitch Ratings Fitch Ratings Instruments Commercial Paper Non-convertible debentures Subordinated debt Bank Loan Long-term Bank Loan Short-term Non-convertible debenture Long Term Principal Protected Market Linked Debentures Commercial Paper Subordinated debt Ratings as on 31.03.2023 CARE A1+ CARE AA+/Stable SHRIRAM Finance CARE AA+/Stable CRISIL AA+/Stable CRISIL A1+ CRISIL AA+/Stable CRISIL PPMLD AA+/Stable CRISIL A1+ CRISIL AA+/Stable BB/ Stable Fitch Ratings Fitch Ratings ICRA ICRA India Ratings & Research Private Limited India Ratings & Research Private Limited India Ratings & Research Private Limited India Ratings & Research Private Limited India Ratings & Research Private Limited India Ratings & Research Private Limited India Ratings & Research Private Limited Standard & Poor's Ratings Standard & Poor's Ratings Standard & Poor's Ratings Long-Term Issuer Default Rating Senior Secured Notes Short-Term Issuer Default Rating Local Currency Long Term Issuer Default Rating Fixed deposit Non-convertible debenture Commercial Paper Non-convertible debentures Subordinated debt Bank Loans Principal protected market linked debentures Dual Recourse Bond Term deposit Senior Secured Notes Short-Term Issuer Credit Rating Long-Term Issuer Credit Rating BB B BB/ Stable [ICRA] AA+ (Stable) [ICRA] AA+ (Stable) IND A1+ IND AA+/Stable IND AA+/Stable IND AA+/Stable IND PP-MLD AA+/ Stable IND AAA (CE)/Stable IND AA+/Stable BB- B BB-/ Stable 29#30SHRIRAM Finance No. of shares outstanding: 270.52 mn Shareholding Pattern as on March 31, 2023 vs March 31, 2022** No. of shares outstanding: 374.35 mn Other Corporate Body, 8.53% MF/Bank/ Insurance Public, 4.49% ■ Promoters & 11.56% " Q4 FY23 NRI, 2.77% Promoters group*, 25.51% * Other Corporate Body, 0.20% MF/Bank/ Public, 5.52% ■ Promoters & Promoters Insurance 13.77% Q4 FY22 group*, 26.45% * " NRI, 0.13% ■FII & FPI, 47.14% Details of Promoters/Promoter Group* Holding (%) Shriram Capital Private Limited 17.93% (Formerly Shriram Financial Ventures (Chennai) Private Limited) Details of Promoters/Promoters Group* Shriram Capital Limited Shriram Value Services Limited Shriram Value Services Limited 3.48% Shriram Ownership Trust Shriram Ownership Trust 2.09% Total Sanlam Life Insurance Limited 2.01% Total 25.51% ** prior to Merger FII & FPI, 53.93% Holding (%) 26.04% 0.39% 0.02% 26.45% 30#31* * Has Attracted Strong Interest from Quality Investors SHRIRAM Finance Consistent track record and high growth potential has attracted reputed institutional and private equity investors to infuse growth capital Last Four fund raising : 1. On March 29, 2023, the Company issued and allotted USD 0.15 bn Senior Secured Floating Rate Notes due 2026 ("Notes") for a sum of Rs.1,2.33 bn under the USD 3.5 bn Global Medium Term Note Programme. The said Notes are listed on Indian International Exchange ("INX"). The proceeds of the issue of the Notes are being utilised in accordance with SFL's Social Finance Framework and as may be permitted by the RBI ECB guidelines for onward lending and other activities. 2. On November 25, 2021, allotted 1.736 mn equity shares of face value of Rs. 10/- each aggregating to Rs. 2.5 bn to Shriram Capital Limited, Promoter of the Company for conversion of warrants at a price of Rs. 1,440/- per equity Share (including a premium of Rs. 1,430/- per equity share) on receipt of balance subscription money of Rs. 1.9 bn for allotment of 1,736,100 Warrants convertible into Equity Shares at Rs. 1.080/- per Warrant, being 75% of the Issue price of Rs. 1,440/- of the Warrants. The entire proceeds have been utilised for the objects of the Preferential Issue. Pursuant to allotment of the Equity Shares in the Preferential Issue, the paid-up share capital of the Company stood increased on November 25, 2021 from Rs. 2,687,836,130/- to Rs. 2,705,197,130/- comprising of 270,519,713 equity shares of face value of Rs. 10/- each. 3. On July 8, 2021, allotted 1.736 mn equity shares of face value of Rs. 10/- each aggregating to Rs. 2.5 bn on a preferential basis to Shriram Capital Limited, Promoter of the Company (Preferential Issue) for cash at a price of Rs. 1,440/- per equity Share (including a premium of Rs. 1,430/- per equity share). Further the Company allotted 1.736 mn warrants convertible into equity shares of face value of Rs. 10/- each aggregating to Rs. 2.5 bn on a preferential basis to Shriram Capital Limited, for cash at a price of Rs. 1,440/- per equity share (including a premium of Rs. 1,430/- per equity share) and had received the warrant subscription money of Rs. 0.62 bn, being 25% of the Issue price i.e. Rs. 360/- per Warrant. 4. On June 12, 2021, allotted 13.986 mn equity shares of face value of Rs. 10/- each aggregating to Rs. 19.99 bn to the eligible Qualified Institutional Buyers (QIB) for cash at a price of Rs. 1,430/- per equity share (including a premium of Rs. 1,420/- per equity share). 31#32List of Key Shareholders SHRIRAM Finance Key Shareholders Shareholding As on % March 31, 2023 (Mn Shares) Promoter and Promoter Group 95.52 25.51 Piramal Enterprises Limited 31.22 8.34 Life Insurance Corporation Of India 16.37 4.37 TPG India Investments II, Inc. 9.92 2.65 Mirae Asset Tax Saver Fund (various sub funds) 8.06 2.15 Government Pension Fund Global 7.99 2.13 HDFC Trustee Company Ltd. (under various funds) 7.37 1.97 New World Fund Inc 5.07 1.35 JP Morgan Funds 4.84 1.29 Fidelity Funds Sustainable Asia Equity Fund 3.70 0.99 Public and Others 184.30 49.25 32 Total 374.35 100.00#331,35,479 17.38% 20.27% 21.99% 22.50% 22.97% Well-Capitalized Balance Sheet SHRIRAM Finance * Capital Adequacy Ratio at 22.61% (Tier I - 21.20%, Tier II - 1.41%) as on March 31, 2023 vs 15% mandated by RBI Networth (Rs. mn) CRAR (%) ■Book Value (Rs.) 1,58,087 1,79,775 2,15,407 2,59,046 4,32,021 22.61% FY18 FY19 FY20 FY21 FY22 FY23* FY18 FY19 FY20 FY21 FY22 FY23* 1,156.61 958.61 852.30 793.59 697.99 598.35 *Note:- The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 33#34RECENT PERFORMANCE SHRIRAM Finance#35Performance Highlights - Q4 FY23 vs Q4 FY22* Q4 FY23 Rs 77,691.5 m n Total Income Q4 FY22* Rs 50,875.9 mn Q4 FY23 Rs 44,459.0 m n Net Interest Income** Q4 FY22* Rs 26,278.0 mn ** including Net Direct assignment Income Rs. 890.0 Mn (Q4 FY22 Rs. 426.1 Mn) PAT EPS Q4 FY23 Rs 13,082.0 mn Q4 FY22* Rs 10,861.0 mn Q4 FY23 Rs 34.94 Q4 FY22* Rs 40.15 SHRIRAM Finance Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 35#36Performance Highlights - FY23 vs FY22* Total Income FY23 Rs 298,028.9 mn FY22* Rs 192,742.3 mn FY23 Rs 169,630.0 mn Net Interest Income** FY22* Rs 93,160.0 mn ** including Net Direct assignment Income Rs. 2,342.6 Mn (FY22* Rs. 2,233.9 Mn) PAT EPS FY23 Rs 59,792.0 mn FY22* Rs 27,078.0 mn FY23 Rs 159.69 FY22* Rs 101.74 SHRIRAM Finance Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 36#37Performance Highlights - Q4 FY23 vs Q4 FY22* AUM 15.89 % Q4 FY23 Q4 FY22 Rs 1,856,828.6 mn Rs 1,602,266.2 mn Q4 FY23 Rs 113,821.8 mn Gross Stage 3 assets* Q4 FY22 Rs 88,875.5 mn Q4 FY23 Rs 56,748.6 mn Net Stage 3 assets* Q4 FY22 Rs 44,460.5 mn Book Value* Q4 FY23 Rs 1,156.61 Q4 FY22 Rs 958.61 SHRIRAM Finance Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 37#38AUM Break-up Particulars (Rs. mn) Loan Portfolio - On Books SHRIRAM Finance Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) Balance sheet assets 1,620,893.0 1,567,662.6 1,482,206.4 1,409,852.8 1,373,944.7 17.97% 3.40% Securitised assets 212,491.3 190,749.6 195,502.5 Total On books 1,833,384.2 1,758,412.2 - Off Books** 23,444.4 Total AUM 1,856,828.6 16,568.1 1,774,980.2 1,677,708.9 15,881.9 1,693,590.8 205,850.8 1,615,703.6 13,996.8 1,629,700.4 214,081.6 -0.74% 11.40% 1,588,026.3 15.45% 4.26% 14,239.9 1,602,266.2 64.64% 41.50% 15.89% 4.61% *Off Books pertains to Direct assignment portfolio. 38#39Empty#40Branch & AUM distribution - Q3 FY23 vs Q3 FY22 Branch (Nos) ■ Urban, 394 ■Rural, 1,518 ■ Urban, AUM (Rs in bn) 277.9 Semi- Total Branch 2,922 Urban, 1,010 Q4 FY23 ■ Urban, 381 ■Rural, 1,460 Q4 FY22 Semi- Total AUM Urban, Rs 1,856.8 bn 662.2 SHRIRAM Finance Q4 FY23 Rural, 916.7 ■ Urban, 249.6 ■Rural, 768.5 Total Branch 2,840 ■ Semi- Urban, 999 Urban branches represents places where population in more than 10 Lakh Semi-urban branches represents places where population in between 1 Lakh to 10 Lakh Rural branches represents places where population in less than 1 Lakh Total AUM Rs 1,602.2 bn ■ Semi- Urban, 584.1 Q4 FY22 40#41Provision Analysis SHRIRAM Finance Particulars (Rs. in mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) Gross Stage 3 113,821.8 110,586.1 105,830.5 101,315.5 88,875.5 28.07% 2.93% ECL provision-Stage 3 57,073.2 56,080.6 51,922.6 49,255.5 44,415.0 28.50% 1.77% Net Stage 3 56,748.6 54,505.5 53,907.9 52,060.0 44,460.5 27.64% 4.12% Gross Stage 3 (%) 6.21% 6.29% 6.31% 6.27% 7.07% -12.19% -1.28% 3.19% 50.14% Net Stage 3 (%) Coverage Ratio (%) Stage 3 Gross Stage 1 1,556,198.9 1,484,830.8 1,401,881.5 1,340,246.9 3.20% 50.71% 3.32% 49.06% 3.32% 48.62% 3.67% -12.87% -0.22% 49.97% 0.34% -1.12% 1,034,929.8 50.37% 4.81% ECL provision-Stage 1 45,412.8 41,119.6 37,792.9 34,490.9 33,813.4 34.30% 10.44% Net Stage 1 1,510,786.1 1,443,711.2 1,364,088.6 1,305,756.0 1,001,116.4 50.91% 4.65% Gross Stage 1 (%) 84.88% 84.44% 83.56% 82.95% 82.33% 3.09% 0.52% ECL provision (%) Stage 1 2.92% 2.77% 2.70% 2.57% 3.27% -10.68% 5.38% Gross Stage 2 163,362.9 163,005.4 169,987.9 174,141.4 133,185.0 22.66% 0.22% ECL provision-Stage 2 11,052.9 Net Stage 2 152,310.0 10,779.1 152,226.3 Gross Stage 2 (%) ECL provision (%) Stage 2 8.91% 6.77% 9.27% 6.61% 11,740.7 158,247.3 10.13% 6.91% 12,946.7 161,194.7 10.78% 7.43% 12,110.4 -8.73% 2.54% 121,074.6 10.60% 9.09% 25.80% 0.05% -15.90% -3.88% -25.59% 2.32% Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 41#42Product wise Provision Analysis - Mar'23 SHRIRAM Finance Particulars (Rs. mn) Commercial Passenger Construction Farm Vehicles Vehicles Equipments Equipments MSME Two Gold Wheelers Personal Others Loans Total Gross Stage 3 59,990.3 19,176.0 10,388.1 3,487.2 11,222.3 4,305.7 1,410.3 3,674.6 167.2 113,821.8 ECL provision-Stage 3 30,886.6 9,306.1 5,123.3 1,811.2 6,363.4 2,013.1 Net Stage 3 29,103.7 9,870.0 5,264.8 1,676.0 4,858.9 2,292.7 1,317.4 92.9 1,338.2 138.7 2,336.5 57,073.2 28.5 56,748.6 Gross Stage 3 (%) 6.50% 5.78% 7.26% 10.27% 5.93% 4.28% 3.15% 5.53% 33.61% 6.21% Net Stage 3 (%) 3.26% 3.06% 3.82% 5.22% 2.66% 2.32% 2.95% 3.59% 7.95% 3.19% Coverage Ratio (%) Stage 3 51.49% 48.53% 49.32% 51.94% 56.70% 46.75% 6.59% 36.42% 82.94% 50.14% Gross Stage 1 788,209.5 283,533.1 121,299.8 24,966.4 158,061.0 85,967.9 37,976.5 55,925.1 259.5 1,556,198.9 ECL provision-Stage 1 26,261.2 9,363.3 4,053.1 849.5 2,183.5 1,257.7 53.2 1,381.0 10.4 Net Stage 1 761,948.3 274,169.8 117,246.7 24,117.0 155,877.5 84,710.3 37,923.3 54,544.2 249.1 45,412.8 1,510,786.1 Gross Stage 1 (%) 85.39% 85.50% 84.77% 73.55% 83.51% 85.38% 84.80% 84.16% 52.17% 84.88% ECL provision (%) Stage 1 3.33% 3.30% Gross Stage 2 74,835.8 28,911.9 3.34% 11,408.4 5,489.4 3.40% 1.38% 1.46% 0.14% 2.47% 4.00% 2.92% 19,982.9 10,418.7 5,397.1 6,848.0 70.7 163,362.9 ECL provision-Stage 2 6,394.6 2,328.0 Net Stage 2 68,441.3 26,583.9 969.2 10,439.1 5,010.8 478.6 632.5 226.4 5.7 14.2 3.7 11,052.9 19,350.4 10,192.4 5,391.4 6,833.9 67.0 152,310.0 Gross Stage 2 (%) 8.11% 8.72% 7.97% 16.17% 10.56% 10.35% 12.05% 10.31% 14.21% 8.91% 42 ECL provision (%) Stage 2 8.54% 8.05% 8.50% 8.72% 3.17% 2.17% 0.11% 0.21% 5.18% 6.77%#43P&L Statement Particulars (Rs. mn) Interest income SHRIRAM Finance Interest expended 32,707.0 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) 77,166.0 75,699.0 73,837.0 69,694.0 50,543.0 31,420.0 32,788.0 29,850.0 52.67% 24,265.0 34.79% Net interest income 44,459.0 44,279.0 41,049.0 39,844.0 26,278.0 69.19% 4.10% 126,766.0 98,646.0 0.41% 169,630.0 FY23 1.94% 296,396.0 191,806.0 54.53% 28.51% 93,160.0 82.08% FY22* YoY (%) Other Operating Income Operating income 44,459.0 44,279.0 41,049.0 39,844.0 26,278.0 69.19% 0.41% 169,630.0 93,160.0 82.08% Staff cost 6,907.0 6,391.0 5,831.0 5,932.0 2,749.0 Other Operating expenditure 7,234.0 5,280.0 5,613.0 4,557.0 Operating expenditure 14,141.0 11,671.0 11,444.0 10,489.0 2,668.0 5,417.0 Core operating profit 30,318.0 32,608.0 29,605.0 29,355.0 20,861.0 Other income 492.0 408.0 334.0 320.0 253.0 151.26% 171.14% 37.01% 22,684.0 161.05% 21.16% 47,745.0 19,870.0 45.33% -7.02% 121,885.0 94.47% 20.59% 1,555.0 8.07% 25,061.0 9,971.0 151.34% 9,899.0 129.15% 140.29% 73,290.0 66.31% 810.0 91.98% Operating profit 30,810.0 33,016.0 29,939.0 29,675.0 21,114.0 45.92% Loan Losses & Provisions 11,847.0 9,172.0 8,976.0 11,597.0 7,608.0 Profit before tax 18,963.0 23,844.0 20,963.0 18,078.0 13,506.0 Tax Expense 5,881.0 6,074.0 5,411.0 Profit after tax 13,082.0 17,770.0 15,552.0 Other comprehensive Income (Net) 1,173.0 (205.0) (251.0) Total Comprehensive Income 14,255.0 17,565.0 15,301.0 (975.0) 12,413.0 -6.68% 123,440.0 55.72% 29.16% 41,592.0 38,609.0 7.73% 40.40% -20.47% 81,848.0 35,491.0 130.62% 4,690.0 2,645.0 122.34% -3.18% 22,056.0 8,413.0 162.17% 13,388.0 10,861.0 20.45% -26.38% 59,792.0 27,078.0 120.81% (1,396.0) 184.03% 672.20% (258.0) (1,228.0) 78.99% 9,465.0 50.61% 59,534.0 25,850.0 130.31% 74,100.0 66.59% -18.84% Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 43#44Summarized Balance Sheet SHRIRAM Finance Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22* YoY (%)* QoQ (%) I. Assets Financial Assets a) Cash and bank balances 158,174.0 167,437.0 b) Loans 1,719,846.0 1,650,433.0 251,951.0 1,576,253.0 c) Investments 85,651.0 93,596.0 112,999.0 d) Other-financial assets 10,187.0 9,814.0 13,030.0 257,084.0 163,551.0 1,519,011.0 1,166,652.0 97,431.0 68,092.0 9,349.0 4,487.0 -3.29% -5.53% 47.42% 25.79% -8.49% 127.03% 3.80% 4.21% Non-financial assets a) Goodwill 14,067.0 14,086.0 14,086.0 14,086.0 0.00% -0.13% b) Other non-financial assets 48,715.0 48,134.0 43,767.0 42,187.0 18,279.0 166.51% 1.21% Total Assets 2,036,640.0 1,983,500.0 2,012,086.0 1,939,148.0 1,421,061.0 43.32% 2.68% II. Liabilities and Equity Financial Liabilities a) Debts 1,579,063.0 1,533,366.0 1,582,320.0 1,525,688.0 1,144,968.0 37.91% 2.98% b) Other financial liabilities Non-financial Liabilities 18,789.0 5,722.0 Equity Total Liabilities and Equity 433,066.0 2,036,640.0 18,282.0 7,650.0 424,202.0 1,983,500.0 17,651.0 5,897.0 406,218.0 17,691.0 13,777.0 5,423.0 2,994.0 390,346.0 259,322.0 36.38% 2.77% 91.12% -25.20% 67.00% 2.09% 2,012,086.0 1,939,148.0 1,421,061.0 43.32% 2.68% Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable 44 with figures of the respective previous year/ period.#45Key Metrics - Q4 FY23 SHRIRAM Finance P&L Metrics (Rs. mn) Interest Income Less: Interest Expenses Net Interest Income 44,459.0 Other Operating Income & Other Income 492.0 41,049.0 334.0 Profit After Tax 13,082.0 17,770.0 15,552.0 EPS (Rs.) 34.94 Cost to income Ratio (%) NIM (on AUM) 47.46 28.29% 22.23% 8.55% 8.52% 41.53 24.42% 8.43% Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) 77,166.0 75,699.0 73,837.0 69,694.0 50,543.0 52.67% 32,707.0 31,420.0 32,788.0 29,850.0 24,265.0 34.79% 4.10% 126,766.0 98,646.0 44,279.0 39,844.0 26,278.0 69.19% 0.41% 169,630.0 93,160.0 408.0 320.0 253.0 94.47% 20.59% 1,555.0 13,388.0 10,861.0 20.45% -26.38% 59,792.0 27,078.0 35.76 40.15 -12.98% -26.38% 159.69 23.18% 20.00% 41.41% 27.22% 8.12% 6.96% 22.84% 0.35% QOQ (%) FY23 1.94% 296,396.0 191,806.0 FY22* YoY (%) 54.53% 28.51% 82.08% 810.0 91.98% 120.81% 101.74 56.96% 24.57% 19.89% 23.52% 8.37% 6.62% 26.44% Balance Sheet Metrics (Rs. mn) Networth Book Value (Rs.) Interest Coverage (x) ROA (%) ROE (%) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) 432,020.7 423,156.6 405,488.7 389,878.7 259,045.5 66.77% 2.09% FY23 FY22* YoY (%) 432,020.7 259,045.5 66.77% 1,156.61 1,132.94 1,084.90 1,042.52 958.61 Tier I CRAR % Tier II CRAR % Total CRAR % 2.47 2.42 2.47% 3.39% 3.00% 12.21% 17.12% 15.62% 21.20% 21.39% 21.51% 1.41% 1.60% 1.69% 22.61% 22.99% 23.20% 2.26 2.35 -1.57% Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable with figures of the respective previous year/ period. 45 2.70% 14.49% 21.45% 1.68% 23.13% 20.66% 2.09% 2.09 18.18% 2.07% 2.90% -14.83% -27.14% 16.96% -28.01% -28.69% 20.70% 2.42% -0.91% 2.27% -37.89% -12.09% 22.97% -1.57% -1.65% 1,156.61 958.61 20.66% 2.35 1.95 20.51% 2.89% 1.88% 53.95% 14.84% 11.14% 33.21% 21.20% 20.70% 1.41% 2.27% 22.61% 22.97% 2.42% -37.89%#46Borrowing Profile Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Product Non-Convertible Debentures Public Deposit Securitisation Subordinated debts Term Loan Amt in bn External Commercial Bond ECB Loans Other Borrowing Total % 302.45 19.15% 361.40 22.89% 221.06 14.00% 45.24 2.86% 411.97 26.09% 134.08 8.49% 98.28 6.22% 4.59 0.29% 1,579.06 100.00% Amt in bn % Amt in bn 325.93 344.89 22.49% 202.68 13.22% 46.35 3.02% 410.59 26.78% 123.52 8.06% 71.40 4.66% 7.91 0.52% 1,533.27 100.00% 21.26% % 335.55 21.21% 325.43 20.57% 198.46 12.54% 45.78 2.89% 415.87 26.29% 192.62 12.17% 63.73 4.03% 4.72 0.30% 1,582.16 100.00% Amt in bn % 292.25 19.21% 303.63 19.96% 208.69 13.72% 46.03 3.03% 394.66 25.94% 207.38 13.63% 61.66 4.05% 7.16 0.47% 1,521.46 100.00% SHRIRAM Finance 46#47ALM statement on March 31, 2023 SHRIRAM Finance Over one Over 2 Over 3 Over 6 Over one Over 3 to Over 5 Particulars (Rs. mn) One month month to 2 months to 3 months to months to year to 3 Total 5 years years months months 6 months one year years Total Outflows 72,785.80 45,836.30 78,016.40 163,241.70 Total Intflows 182,792.80 72,935.20 Mismatch or Surplus/(Deficit) 110,007.00 Cum. Mismatch or Surplus/(Deficit) 110,007.00 84,195.10 199,186.70 27,098.90 6,178.70 35,945.00 137,105.90 143,284.60 179,229.60 265,245.80 644,147.60 205,433.10 586,439.40 2,061,146.10 360,542.50 796,244.60 207,371.50 136,653.70 2,039,922.10 95,296.70 152,097.00 1,938.40 (449,785.70) (21,224.00) 274,526.30 426,623.30 428,561.70 (21,224.00) 47#48SHRIRAM HOUSING FINANCE SHRIRAM HOUSING FINANCE LIMITED (SHFL) 48#49AUM Break-up Particulars (Rs. cr) Loan Portfolio SHRIRAM HOUSING FINANCE Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) -On Books Balance sheet assets 63,636.3 57,518.1 54,236.5 47,649.6 45,167.6 40.89% 10.64% Securitised assets 3,700.1 2,864.7 1,780.0 1,898.4 Total On books 67,336.4 60,382.8 56,016.5 49,548.0 577.8 45,745.4 540.38% 29.16% 47.20% 11.52% - Off Books * Total AUM 13,129.6 80,466.0 71,781.6 11,398.8 9,442.7 8,478.4 7,804.8 68.22% 15.18% 65,459.2 58,026.4 53,550.1 50.26% 12.10% *Off Books pertains to Direct assignment portfolio. 49#50Assets under Management SHRIR M HOUSING FINANCE YoY (%) QoQ (%) Segment (Rs. Mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 HL 47,487.5 42,518.4 38,800.5 34,720.0 LAP 24,153.4 20,412.8 18,364.1 16,533.7 31,951.6 48.62% 11.69% 15,499.8 55.83% 18.32% Top up 4,082.9 3,475.2 3,176.9 2,910.8 CF 3,856.5 4,115.0 4,047.1 3,552.8 2,743.8 48.81% 17.49% 3,134.2 23.05% -6.28% CL 885.7 1,260.2 1,070.6 309.0 Total AUM 80,466.0 71,781.6 65,459.2 58,026.4 220.8 301.19% -29.72% 53,550.1 50.26% 12.10% 50#51P & L Statement Particulars (Rs. mn) Interest income SHRIRAM HOUSING FINANCE Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) FY23 FY22 YoY (%) 2,275.1 2,044.4 1,911.4 1,598.8 1,431.1 58.98% 11.28% 7,829.7 5,307.3 47.53% Interest expended 1,222.1 1,030.3 951.6 749.2 703.0 73.84% 18.62% 3,953.2 2,806.0 40.88% Net interest income 1,053.0 1,014.1 959.8 849.6 728.1 44.62% 3.84% 3,876.5 2,501.3 54.98% Other Operating Income Operating income 1,053.0 1,014.1 959.8 849.6 728.1 44.62% 3.84% 3,876.5 2,501.3 54.98% Staff cost 458.2 344.7 249.8 250.7 245.1 86.94% 32.93% 1,303.4 852.4 52.91% Other Operating expenditure 244.3 165.8 209.5 165.5 130.0 87.92% 47.35% 785.1 458.5 71.23% Operating expenditure 702.5 510.5 459.3 416.2 375.1 87.28% 37.61% 2,088.5 1,310.9 59.32% Core operating profit 350.5 503.6 500.5 433.4 353.0 -0.71% -30.40% 1,788.0 1,190.4 50.20% Other income 4.8 1.0 2.4 2.2 1.9 152.63% 380.00% 10.4 9.0 15.56% Operating profit 355.3 504.6 502.9 435.6 354.9 Loan Losses & Provisions 7.3 14.3 45.2 32.1 51.1 0.11% -85.71% -29.59% 1,798.4 1,199.4 49.94% -48.95% 98.9 108.0 -8.43% Profit before tax 348.0 490.3 457.7 403.5 303.8 Tax Expense (23.2) 126.4 117.4 101.5 83.1 14.55% -29.02% 1,699.5 -127.92% -118.35% 1,091.4 55.72% 322.1 288.0 11.84% Profit after tax 371.2 363.9 340.3 302.0 220.7 68.19% 2.01% 1,377.4 803.4 71.45% Other comprehensive Income (Net) 2.0 (3.5) (1.6) (0.8) 1.5 33.33% 157.14% (3.9) 1.4 -378.57% Total Comprehensive Income 373.2 360.4 338.7 301.2 222.2 67.96% 3.55% 1,373.5 804.8 70.66% 51 EPS (Rs) 1.14 1.12 1.05 0.93 0.78 46.98% 2.02% 4.23 2.82 49.84%#52Summarized Balance Sheet SHRIRAM HOUSING FINANCE Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 YoY (%) QoQ (%) I. Assets Financial Assets a) Cash and bank balances 48,954.2 13,888.4 25,056.3 28,075.0 22,954.7 113.26% 252.48% b) Loans 668,134.8 598,124.5 554,344.0 489,939.7 452,214.8 47.75% 11.70% c) Investments 25,688.3 29,211.0 20,652.9 20,333.2 14,043.2 82.92% -12.06% d) Other-financial assets 18,007.4 18,247.4 17,032.5 16,310.9 15,574.7 15.62% -1.32% Non-financial assets 13,482.4 16,092.2 14,584.6 14,126.0 12,047.1 11.91% -16.22% Total Assets 774,267.1 675,563.5 631,670.1 568,784.7 516,834.4 49.81% 14.61% II. Liabilities and Equity Financial Liabilities a) Debts 629,606.1 535,136.6 497,176.0 438,051.2 389,667.0 61.58% 17.65% b) Other financial liabilities 11,171.3 9,715.5 7,997.5 8,110.1 7,627.5 46.46% 14.99% Non-financial Liabilities 3,571.0 4,753.6 4,241.1 3,804.7 3,780.6 -5.54% -24.88% Equity 129,918.8 125,957.8 122,255.5 118,818.7 115,759.3 12.23% 3.14% Total Liabilities and Equity 774,267.1 675,563.5 631,670.1 568,784.7 516,834.4 49.81% 14.61% 52#53SHRIRAM Provision Analysis HOUSING FINANCE Particulars (Rs. in mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) Gross Stage 3 6,243.2 6,964.2 8,536.7 7,717.8 7,879.7 -20.77% -10.35% ECL provision-Stage 3 1,588.0 1,697.8 2,071.7 1,815.1 1,843.7 -13.87% -6.47% Net Stage 3 4,655.2 5,266.4 6,465.0 5,902.7 6,036.0 -22.88% -11.61% Gross Stage 3 (%) 0.93% 1.15% 1.52% 1.56% 1.72% -46.17% -19.61% Net Stage 3 (%) 0.69% 0.87% 1.16% 1.20% 1.32% -47.69% -20.77% Coverage Ratio (%) Stage 3 25.44% Gross Stage 1 657,150.7 24.38% 589,392.1 24.27% 543,128.5 480,309.0 23.52% 23.40% 8.71% 4.34% 442,636.5 48.46% 11.50% ECL provision-Stage 1 3,214.1 Net Stage 1 653,936.6 3,777.6 585,614.6 3,465.0 539,663.4 3,103.9 477,205.2 3,179.1 1.10% -14.92% 439,457.4 48.81% 11.67% Gross Stage 1 (%) 97.59% 97.61% 96.96% 96.94% 96.76% 0.86% -0.02% ECL provision (%) Stage 1 0.49% 0.64% 0.64% 0.65% 0.72% -31.90% -23.69% Gross Stage 2 9,970.2 7,471.7 8,499.9 7,452.9 6,937.4 43.72% 33.44% ECL provision-Stage 2 427.2 228.2 284.4 246.1 216.0 97.75% 87.21% Net Stage 2 9,543.0 7,243.5 8,215.5 7,206.8 6,721.3 41.98% 31.75% Gross Stage 2 (%) 1.48% 1.24% 1.52% 1.50% 1.52% -2.36% 19.66% 53 ECL provision (%) Stage 2 4.28% 3.05% 3.35% 3.30% 3.11% 37.60% 40.30%#54Key Metrics P&L Metrics (Rs. mn) Interest Income Less: Interest Expenses SHRIRAM HOUSING FINANCE Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) 2,275.1 2,044.4 1,911.4 1,598.8 1,431.1 58.98% 11.28% FY23 7,829.7 FY22 YoY (%) 5,307.3 47.53% 1,222.1 1,030.3 951.6 749.2 703.0 73.84% 18.62% 3,953.2 2,806.0 40.88% Net Interest Income 1,053.0 1,014.1 959.8 849.6 728.1 44.62% 3.84% 3,876.5 2,501.3 54.98% Other Operating Income & Other Income 4.8 1.0 2.4 2.2 1.9 152.63% 380.00% 10.4 9.0 15.56% Profit After Tax 371.2 363.9 340.3 302.0 220.7 EPS (Rs.) 1.14 Cost to income Ratio (%) NIM (on AUM) 1.12 66.88% 46.15% 48.09% 6.69% 7.66% 1.05 0.93 7.32% 49.12% 7.17% 68.19% 0.78 46.98% 51.25% 30.51% 6.86% -2.49% 2.01% 1,377.4 803.4 71.45% 2.02% 44.92% -12.63% 4.23 52.79% 52.40% 0.74% 7.08% 6.08% 16.50% 2.82 49.84% Balance Sheet Metrics (Rs. mn) Networth Book Value (Rs.) Interest Coverage (x) ROA (%) ROE (%) Tier I CRAR % Tier II CRAR % Total CRAR % 2.14% 0.87% 25.48% 25.44% 27.27% Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 12,991.9 12,595.8 10,480.2 10,215.1 39.85 38.65 37.58 1.31 1.35 2.05% 2.23% 2.27% 11.61% 11.73% 11.29% Q4 FY22 11,349.2 14.47% 36.53 35.59 11.97% YoY (%) QoQ (%) 3.14% 3.10% 39.85 FY23 12,991.9 11,575.9 FY22 YoY (%) 12.23% 35.59 11.97% 1.48 1.54 1.43 -8.69% -3.35% 10.30% 23.34% 24.57% 26.33% 28.52% 0.94% 1.04% 29.56% 2.23% 1.81% 7.71% 50.68% 29.87% -21.86% 1.02% 110.78% 30.89% -17.52% 13.37% -7.97% 1.35 2.13% -0.99% 11.36% 9.27% 22.58% -5.02% 23.34% 29.87% -21.86% 147.56% 2.14% 1.02% 110.78% 0.17% 25.48% 30.89% -17.52% 54 1.29 4.96% 1.79% 19.54%#55Associate SHRIRAM Finance Shriram Auotmall Limited (SAMIL) 55#56Associate SHRIRAM Finance ✦ Shriram Automall India Limited (SAMIL), an ISO 9001:2015 certified company, is India's Largest Phy-gital Pre-owned Marketplace connecting pre-owned vehicles and equipment buyers and sellers. ✦ SAMIL began its journey in 2011 by setting up India's first professionally managed and organized Auction Platform for buying and selling pre-owned cars, commercial vehicles, construction equipment, farm equipment, three-wheelers, two-wheelers, etc. Backed by CarTrade Tech Limited and Shriram Finance Limited, SAMIL has over 1,700 employees and more than 100 Automalls across India. SAMIL conducts thousands of auction events every month through its Phygital platforms (Automalls) and online platforms. www.cartradeexchange.com and www.bids.samil.in. SAMIL also provides vehicle inspection and valuation services through Adroit Auto, innovative car buying and selling experience through BlueJack and industrial auction of properties, plant and machinery, commodities, and scrap, salvage and surplus assets through www.123done.in. For more information about Shriram Automall, its group companies, and services, visit www.samil.in Revenue from operation earned Rs 532.49 million in Q4 FY 23 as against Rs.577.43 million in Q4 FY 22 Profit after Tax (PAT): Q4 FY23 Rs. 70.35 million, FY 23 Rs. 192.03 million. Share of Profit of Associate: Q4 FY23 Rs. 31.4 million, FY23 Rs. 85.6 million Share of Profit of Associate: Q4 FY22 Rs. 51.0 million, FY22 Rs. 131.7 million 56#57Consolidated Numbers SHRIRAM Finance 57#58Financial Performance (Consolidated) Particulars (Rs. mn) Interest income SHRIRAM Finance Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) FY23 FY22* YoY (%) 79,265.1 77,562.8 75,569.2 71,041.6 50,542.9 56.83% 2.19% 303,439.6 191,806.2 58.20% Interest expended 33,928.8 32,449.7 33,739.0 30,597.4 24,264.7 39.83% 4.56% 130,714.9 98,645.6 32.51% Net interest income 45,336.3 45,113.1 41,830.2 40,444.2 26,278.2 72.52% 0.49% 172,724.7 93,160.6 85.41% Other Operating Income Operating income 45,336.3 45,113.1 41,830.2 40,444.2 26,278.2 72.52% 0.49% 172,724.7 93,160.6 85.41% Staff cost 7,365.4 6,735.7 6,080.8 6,182.6 2,749.0 167.93% 9.35% 26,364.5 9,971.0 164.41% Other Operating expenditure 8,106.5 5,445.6 5,821.9 4,722.1 2,668.0 203.84% 48.86% 24,096.1 9,898.5 143.43% Operating expenditure 15,471.9 12,181.3 11,902.7 10,904.7 5,417.0 185.62% 27.01% 50,460.6 19,869.5 153.96% Core operating profit 29,864.4 32,931.8 29,927.5 29,539.5 20,861.2 43.16% -9.31% 122,264.1 73,291.1 66.82% Other income 497.0 409.0 335.6 322.5 252.9 96.52% 21.52% 1,564.1 810.0 93.10% Operating profit 30,361.4 33,340.8 30,263.1 29,862.0 21,114.1 43.80% -8.94% 123,828.2 74,101.1 67.11% Loan Losses & Provisions 11,853.9 9,186.6 9,021.1 11,629.0 7,607.9 55.81% 29.03% 41,690.6 38,608.6 7.98% Profit before tax 18,507.5 24,154.2 21,242.0 18,233.0 13,506.2 37.03% -23.38% 82,137.6 35,492.5 131.42% Tax Expense 5,657.0 6,153.2 5,482.6 4,729.7 2,644.9 113.88% -8.06% 22,022.5 8,413.2 161.76% Profit after tax 12,850.5 18,001.0 15,759.4 13,503.3 10,861.3 18.31% -28.61% 60,115.1 27,079.3 122.00% Share of Profit/(loss) of associate 31.4 15.2 26.5 12.5 51.0 -38.43% 106.58% 85.6 131.7 -35.00% Net Profit after taxes and share of profit/(loss) of associate 12,881.9 18,016.2 15,785.9 13,515.8 10,912.3 18.05% -28.50% 60,200.7 27,211.0 121.24% Other comprehensive Income (Net) 1,174.1 Total Comprehensive Income 14,056.0 (252.1) 15,533.8 (977.3) 12,538.5 (209.4) 17,806.8 Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable 58 (1,394.8) 9,517.5 184.18% 47.69% 660.70% -21.06% (264.5) (1,228.2) 78.46% 59,936.2 25,982.8 130.68% with figures of the respective previous year/ period.#59Summarized Balance Sheet (Consolidated) SHRIRAM Finance Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22* YoY (%) QoQ (%) I. Assets Financial Assets a) Cash and bank balances 163,069.5 168,805.8 254,456.8 259,891.1 163,551.6 -0.29% -3.40% b) Loans 1,786,851.4 1,710,571.8 1,632, 188.4 1,568,681.1 1,166,651.5 53.16% 4.46% c) Investments 74,300.7 82,568.5 101,101.3 85,475.0 69,712.3 6.58% -10.01% d) Other-financial assets 11,935.3 11,653.2 14,690.3 10,945.2 4,508.7 164.72% 2.42% Non-financial assets a) Goodwill 17,409.4 17,419.9 17,419.9 17,419.9 0.00% -0.06% b) Other non-financial assets 52,435.2 52,031.4 47,502.5 45,856.0 18,257.5 187.20% 0.78% Total Assets 2,106,001.5 2,043,050.5 2,067,359.2 1,988,268.3 1,422,681.6 48.03% 3.08% II. Liabilities and Equity Financial Liabilities a) Debts 1,642,022.4 1,586,768.8 1,631,887.9 1,569,344.7 1,144,967.1 43.41% 3.48% b) Other financial liabilities Non-financial Liabilities Equity Non-controlling interest Total Liabilities and Equity 19,905.4 6,078.3 435,128.6 2,866.8 2,106,001.5 19,255.5 7,663.6 426,528.6 2,834.0 2,043,050.5 18,452.5 5,801.0 408,431.7 2,786.1 2,067,359.2 1,988,268.3 1,422,681.6 Note:- *The figures for the current reporting period includes the effect of merger of transferor Companies SCUF and SCL and are therefore not comparable 59 18,503.3 5,460.4 392,199.4 2,760.5 13,777.7 2,994.2 44.48% 3.38% 103.00% -20.69% 260,942.6 66.75% 2.02% 0.00% 1.16% 48.03% 3.08% with figures of the respective previous year/ period.#60About Us About Shriram Finance Ltd. SHRIRAM Finance Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Housing Finance, Stock Broking and Distribution businesses. Shriram Finance Limited is India's largest retail asset financing Non-Banking Finance Company (NBFC) with Assets under Management (AUM) of Rs.1.86 trillion. Recently Shriram City Union Finance Limited and Shriram Capital Limited merged with Shriram Transport Finance Company Limited and was subsequently renamed as Shriram Finance Limited. Established in 1979, Shriram Finance is holistic finance provider catering to the needs of Small Road Transport Operators and small business owners and is a leader in organised financing of pre-owned commercial vehicles and two wheelers. It has vertically integrated business model and offers financing number of products which include passenger commercial vehicles, loans to micro and small and medium enterprises (MSMEs), tractors, gold, personal loans and working capital loans etc. Over last 44 years, it has developed strong competencies in the areas of Loan origination, valuation of pre-owned commercial vehicles and other assets, and collections. It has a pan india presence with network of over 2,922 outlets and an employee strength of 64,052 servicing over 7.32 million customers. Forward Looking Statement Certain statements in this document with words or phrases such as "will", "should", etc., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but are not limited to, our ability to successfully implement our strategy and changes in government policies. The company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the stock exchanges and our reports to shareholders. The company does not undertake to update any forward- looking statements that may be made from time to time by or on behalf of the company. 60#61Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Finance Ltd Email: [email protected] Tel. No. +91-22-4095 9507 SHRIRAM Finance 61#62Thank You SHRIRAM Finance 62