Fino Payments Bank Limited

rs,

mited Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai‐ 400 001 (Scrip Code: 543386) Dear Sir/Madam, Re: Investor Presen

32%

ssification: Internal KEY HIGHLIGHTS : Q2’23 / H1’23 Performance Highlight o Revenue grew YoY by 32% in H1’23 & 25% in Q2’23 o EBITDA margin grew from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating lev

25%

ternal KEY HIGHLIGHTS : Q2’23 / H1’23 Performance Highlight o Revenue grew YoY by 32% in H1’23 & 25% in Q2’23 o EBITDA margin grew from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating leverage in play –

8.1%

Performance Highlight o Revenue grew YoY by 32% in H1’23 & 25% in Q2’23 o EBITDA margin grew from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating leverage in play – Cost / Income Ratio @ 26% v/s. 30% in Q2

10.1%

ight o Revenue grew YoY by 32% in H1’23 & 25% in Q2’23 o EBITDA margin grew from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating leverage in play – Cost / Income Ratio @ 26% v/s. 30% in Q2’22 o PAT Margin

26%

gin grew from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating leverage in play – Cost / Income Ratio @ 26% v/s. 30% in Q2’22 o PAT Margin improved from 3.5% in Q1’23 to 4.6% in Q2’23 o Distribution netwo

30%

from 8.1% in Q1’23 to 10.1% in Q2’23 o Operating leverage in play – Cost / Income Ratio @ 26% v/s. 30% in Q2’22 o PAT Margin improved from 3.5% in Q1’23 to 4.6% in Q2’23 o Distribution network enhanc

3.5%

erating leverage in play – Cost / Income Ratio @ 26% v/s. 30% in Q2’22 o PAT Margin improved from 3.5% in Q1’23 to 4.6% in Q2’23 o Distribution network enhanced by 7% to 12.2 L v/s. Q1’23 o Digital fo

4.6%

in play – Cost / Income Ratio @ 26% v/s. 30% in Q2’22 o PAT Margin improved from 3.5% in Q1’23 to 4.6% in Q2’23 o Distribution network enhanced by 7% to 12.2 L v/s. Q1’23 o Digital footprint expanding

7%

’22 o PAT Margin improved from 3.5% in Q1’23 to 4.6% in Q2’23 o Distribution network enhanced by 7% to 12.2 L v/s. Q1’23 o Digital footprint expanding – up by 208% YoY in Q2’23 Product Performance

208%

o Distribution network enhanced by 7% to 12.2 L v/s. Q1’23 o Digital footprint expanding – up by 208% YoY in Q2’23 Product Performance o 7.6 L CASA accounts opened in Q2’23 o CASA renewal grew by 1

1.5X

% YoY in Q2’23 Product Performance o 7.6 L CASA accounts opened in Q2’23 o CASA renewal grew by 1.5X YoY in Q2’23 – customer trust buildup o CMS – 82% throughput FY’22 achieved in H1’23 Classificati

“Remittance is essentially a cash digitizing product wherein customers on the transferring side need not have a bank account Typically Emerging India customers at the middle of the pyramid are our target segment.”

Use Case

6

Potential

6

Potential

A bank branch in tier 3 and below city is generally very crowded and is far away. It is also open during limited banking hours on weekdays. Through Fino Bank, the idea here is to provide a bank account at the doorstep of the customer Typically Emerging India customers who wish to have a bank account with features like those of regular banks but at a fraction of the cost and at a much greater convenience Branch penetration in India is low. Due to high fixed costs of operating a branch, banks are averse to expand the network. To bring more Indians into the banking ecosystem, asset light and scalable network through merchant points is critical Classification: Internal Classified by: Gaurav Barmera 36 Classification: Internal Current and Savings Account (2/2) Understanding the process flow of an account opening 2 Fino Merchant Portal 1 Merchant Customer 3 Revenue source Subscription Fee charged to Customer 1 2 3 Customer approaches a merchant for account opening Merchant seeks various cust

Potential

Companies which collect cash from their customers need to deposit the same at a bank branch for money in the account. They do the same at a nearest Fino merchant point. This saves the agent of time & travel to a branch and risk of carrying the cash NBFCs, MFIs, logistics, retail & B2B ecommerce, cab aggregators, agritech, retail, among others are the segment of companies – they collect cash either for loan EMIs or on COD orders from their retail customers Companies require a massive network for collection activities on the ground. With overall growth in business of such companies, their collection requirements will also keep growing. They prefer pan-India players which cover a large geography. CMS is also a cash digitizing product wherein merchants receive cash which they can use to disburse through MATM & AEPS Classification: Internal Classified by: Gaurav Barmera Classification: Internal Cash Management Services (2/2) Understanding the process flow of a CMS transaction 2 Merchant Acc

Potential

Beyond the metro and tier 1 cities, ATM penetration is low. Customers have to travel a distance to withdraw cash. The genesis of micro- ATM is to facilitate convenient cash withdrawal in the customers’ neighbourhood at low costs to the merchant Customers in markets which don’t have a deep ATM penetration. These would be the emerging India customers at the middle of the pyramid As it becomes increasingly expensive for banks to maintain an ATM network and manage the cash logistics, micro-ATMs are poised to grow to fill up the void – plus the positive cost arbitrage for setting up a micro-ATM network also is an advantage Classification: Internal Classified by: Gaurav Barmera 40 Classification: Internal Micro-ATM (2/2) Understanding the process flow of an MATM transaction 2 Merchant Account with Fino Bank 3 4 Customer’s bank account 1 Merchant Customer 5 Revenue source Interchange Fees Classification: Internal Classified by: Gaurav Barmera 1 2 3 4 5 Customer shares his debit card to the me

Potential

Customers often don’t carry their ATM cards with them. Many at the bottom of the pyramid may not even have an ATM card. Most ATM kiosks will not be suitable for such customers – they have to visit a bank branch As opposed to micro-ATMs, these are customers who don’t have debit cards or don’t carry one frequently with them. They find it more convenient withdrawing with a fingerprint authentication New-to-financial services customers will initially use basic services like AEPS before they migrate to other transaction mediums on alternate and digital channels as they gradually get familiar and comfortable with the system Classification: Internal Classified by: Gaurav Barmera 42 Classification: Internal AEPS (2/2) Understanding the process flow of an AEPS transaction 2 Merchant Account with Fino Bank 3 4 Customer’s bank account 1 Merchant Customer 5 Revenue source Interchange Fees Classification: Internal Classified by: Gaurav Barmera 1 2 3 4 5 Customer gives his fingerprint on bio-authent

Potential

Customers having cash with them can visit a merchant point to transfer the same to a bank account on the beneficiary side. Remittance is essentially a cash digitizing product wherein customers on the transferring side need not have a bank account Typically Emerging India customers at the middle of the pyramid are our target segment. Such customers earn in the range of ₹10,000- 40,000 per month. Other customers who deal in cash are also our target customers for this product There has to be a player to digitize the cash till the last mile for commencement of a customer’s digital journey – with a growing cash in circulation, the opportunity for this business is expected to multiply – remittance also leads to withdrawal of the cash, partly or full, on the other side through a micro-ATM or AEPS Classification: Internal Classified by: Gaurav Barmera 44 Classification: Internal Remittance (2/2) Understanding the process flow of a remittance transaction 2 Merchant Account with Fino Bank Credit

Potential

Fintech players offering various payment products require a bank at the back-end to process a transaction. Being a bank, Fino can offer its technology platform to such fintechs Fintech partners who do not have a banking license of RBI India is a huge country with a massive addressable market which cannot be catered by any single player. Multiple fintechs will have the last mile reach. However, not everyone can be given access to the secure banking platforms that are periodically audited by RBI. Such fintechs with the last mile reach will need a banking rail to carry out a transaction and for the banks, it is a perfect way to leverage their technology investments at no marginal costs Open Banking Platform Remittance Revenue Source Customer MATM & AEPS Interchange Fees Classification: Internal Classified by: Gaurav Barmera 46 Classification: Internal Open Banking Platform (2/2) Understanding the process flow of a remittance transaction Customer of Open Banking partner 1 1 2 3 2 3 Merchan