SATINNSE4 February 2019

Satin Creditcare Network Limited has informed the Exchange regarding Investor Presentation

Satin Creditcare Network Limited

To,

The Manager, National Stock Exchange of India Ltd. Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra East, Mumbai-400051

Scrip Code: SATIN

Dear Sir/Madam,

Sub:

Investor Presentation

February 4, 2019

The Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400023

Scrip Code: 539404

Pursuant to Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in terms of other applicable laws, if any, please find the Investor Presentation for the quarter/nine months ended on December 31, 2018, as approved by the Board of Directors in their meeting held on February 4, 2019.

We request you to make this presentation public by disclosing the same on your website.

The above information is also available on the website of the Company: www.satincreditcare.com

Thanking You,

Yours Sincerely, For Satin Creditcare Network Limited

(Choudhary Runveer Krishanan) Company Secretary & Compliance Officer

Encl: a/a

Corporate Office: 1st and 3rd Floor, Plot No 97, Sector‐44, Gurugram ‐ 122003 Haryana, India

Registered Office: 5th Floor, Kundan Bhawan Azadpur Commercial Complex, Azadpur, New Delhi ‐ 110033, India

CIN

Landline No E‐Mail ID Website

: L65991DL1990PLC041796 : 0124‐4715400 : info@satincreditcare.com : www.satincreditcare.com

SATIN CREDITCARE NETWORK LIMITED

Q3FY19 CORPORATE PRESENTATION

FEBRUARY 2019

BSE: 539404 | NSE: SATIN Corporate Identity No. L65991DL1990PLC041796

Disclaimer

By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by Satin Creditcare Network Limited (the “Company”). The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such change or changes. This presentation shouldn’t be copied, published, distributed or transmitted without prior written permission from the Company. . By accessing this presentation, you agree to be bound by the following terms and conditions:

This presentation may contain certain “forward looking statements”. These statements include descriptions regarding the intent, belief or current expectations of the Company or its management and information currently available with its management, including with respect to the results of operations and financial condition of the Company. By their nature, such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results, performances, or achievements of the Company to be materially different from those contemplated by the relevant forward looking statement. Significant factors that could make a difference to the Company’s operations include domestic and international economic conditions, changes in government regulations, tax regime and other statutes. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. Against the background of these uncertainties, readers should not rely on these forward-looking statements. Neither the Company nor any of its advisors or representatives, on the behalf of the Company, assumes any responsibility to update or revise any forward-looking statement that may be made from time to time by or on behalf of the Company or to adapt such forward-looking statement to future events or developments.

This presentation contains certain supplemental measures of performance and liquidity that are not required by or presented in accordance with Indian Accounting Standards (IND AS), and should not be considered an alternative to profit, operating revenue or any other performance measures derived in accordance with IND AS or an alternative to cash flow from operations as a measure of liquidity of the Company.

No representation, warranty, guarantee or undertaking (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein and, accordingly, none of the Company, its advisors and representative and any of its or their affiliates, officers, directors, employees or agents, and anyone acting on behalf of such persons accepts any responsibility or liability whatsoever, in negligence or otherwise, for any loss or damage, direct, indirect, consequential or otherwise arising directly or indirectly from use of this presentation or its contents or otherwise arising in connection therewith.

This presentation includes certain industry data and projections that have been obtained from industry publications and surveys. Industry publications and surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance that the information is accurate or complete. Neither the Company nor any of its advisors or representatives have independently verified any of the data from third-party sources or ascertained the underlying economic assumptions relied upon therein. No representation or claim is made that the results or projections contained in this presentation will actually be achieved. All industry data and projections contained in this presentation are based on data obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct. For the reasons mentioned above, you should not rely in any way on any of the projections contained in this presentation for any purpose.

This presentation is based on information regarding the Company and the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its advisors or representatives are under an obligation to update, revise or affirm.

You must make your own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. Any opinions expressed in this presentation are subject to change without notice and past performance is not indicative of future results. By attending this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business.

This presentation and its contents are not and should not be construed as a prospectus or an offer document, including as defined under the Companies Act, 2013, to the extent notified and in force) or an offer document under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. The information contained herein does not constitute or form part of an offer, or solicitation or invitation of an offer to purchase or subscribe, for securities nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto

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CRISIL Research, a division of CRISIL Limited (CRISIL) has taken due care and caution in preparing their Research report (Report) mentioned in this presentation, based on the Information obtained by CRISIL from sources which it considers reliable (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. This Report is not a recommendation to invest / disinvest in any company covered in the Report. CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of this Report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and Infrastructure Solutions Ltd (CRIS), which may, in their regular operations, obtain information of a confidential nature. The views expressed in this Report are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS. No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval.

Contents

Details

Satin Overview

Key Investment Thesis

Future Business Strategy

Annexure

Industry Overview – BC Operations, MSME Finance and Small Ticket Housing Finance

Financial & Operational Details – Consolidated

Financial & Operational Details – Standalone

Financial & Operational Details – TSL

Financial & Operational Details – SHFL

Satin Overview

Company Overview

Gross Loan Portfolio (“GLP” or “Gross AUM(1)”) of Rs. 6,208 cr(2), YoY growth of 27.2%

Improved operational metrics – RoA 4.2 %, RoE 27.6%, CRAR 30.1% & Cost to Income Ratio 46.2% in Q3 FY19(1)

Subsidiaries: -RoE of TSL for 9M FY19 stood at 26.02%;

- Excellent Portfolio quality with Nil delinquency since inception of business of SHFL

Better geographical diversification, expanded footprints in North East and South, marking presence in 23 States/UTs

Demonetization woes over, improved collection efficiency and portfolio quality, conservative estimate of ECL(3)

Business Correspondent (BC) business with IndusInd reached ~Rs 407 cr AUM

Major fund requirement for FY19 tied up

Received NBFC license for Satin Finserv Ltd, Satin’s MSME arm

Cashless disbursement enabled at 100% of branches; 70% of total disbursement in Dec’18

Amongst the first MFIs to receive ISO 27001:2013 certification for information security

Long term Credit Rating CARE A-; Short term rating CRISIL A1; Grading MFI 1 (MFI One)

Received social rating upgrade to sA from Microfinanza, C1 Code of Conduct Assessment (COCA) from ICRA

The first MFI to foray in Fintech space, by launching “Loan Dost”, an app based digital lending platform

(1) Assets Under Management (2) On consolidated basis (3) Expected Credit Loss

Key Performance Indicators(1)

Continuing the growth story

Particulars

AUM (Rs cr)

Revenue (Rs cr)

NII (Rs cr)

PAT (Rs cr)

Q3FY19

Q3FY18

Q2FY19

YoY

QoQ

6,208

4,882

6,191

27.2%

0.3%

402

260

365

236

127

197

55.0%

10.1%

85.9%

19.9%

47(2)

50.6%

54.9%

Particulars

AUM (Rs cr)

Revenue (Rs cr)

NII (Rs cr)

PAT (Rs cr)

6,208

4,882

1,095

736

607

348

145

9MFY19

9MFY18

YoY

RoA (%)

4.2

RoE (%)

27.6

3.7(2)

27.4(2)

2.7

14.9%

57.2%

RoA (%)

3.0%

0.8%

18.8

0.7%

46.9%

RoE (%)

19.6%

5.7%

CRAR(3) (%)

Cost/ Inc (%)

30.07

23.32

25.23

28.9%

19.2%

46.2

71.2

54.0

-35.1%

-14.4%

CRAR (%)

Cost/ Inc (%)

30.07

23.32

51.4%

70.3%

27.2%

48.8%

74.5%

291.7%

255.6%

244.3%

28.9%

-26.8%

(1) On consolidated basis; RoA and RoE are calculated on annualized basis; (2) PAT, RoA and RoE for Q2 FY18 is high on account of reversal of ECL of Rs. 40 cr due to recoveries made in impacted portfolio ; (3) Calculated as per IND AS

Company Overview contd

Marquee Shareholder Base

Key Shareholders

As on Dec 31, 2018

Others 18.61%

Mutual Funds 18.06%

FPIs 14.89%

ADB 3.16%

Kora Cap 4.88%

Key Market Statistics

Particulars BV Jun’18

BV Sep’18

BV Dec’18

CMP

Value (Rs) 196.65

205.79

218.62

256.55

Promoter & Promoter Group 26.73%(1)

NMI 6.89%

SBI-FMO 6.78%

Mutual Funds: DSP Equity & Bond Fund Aditya Birla Sun Life Trustee Pvt Ltd UTI – Hybrid Equity Fund

Foreign Portfolio Investor Morgan Stanley Mauritius Company Ltd Government Pension Fund Global Massachusetts Institute of Technology

Financial Institutions IDFC First Bank Ltd IndusInd Bank Ltd

Foreign Bank Asian Development Bank

(1) On fully diluted basis 28.6%; Book value is on consolidated basis; Share price as on Jan 25, 2019

Key Investment Thesis

Experienced Management Team

Robust Industry Fundamentals with Strong Regulatory Support

Excellent Management of Demonetization

Robust Fundamentals and Established Track Record of Delivering Growth

Backed by Large, Marquee Institutional Investors

Strong Operational Capabilities Backed By Industry’s Best IT Infrastructure

Strong Liquidity Position and Improving Liability Profile

Strong Client Relationships Built Through Transparent Operations

Diversification – By Product & Geography

Improving Liability Profile

Diversified mix of funding

Source of funds raised during the period

One of The Largest Lender Base 77 active lenders

21.3%

5.4%

10.9%

24.9%

39.7%

1.4% 7.6%

13.6%

37.7%

37.5%

28.6%

6.4%

12.2%

19.3%

33.5%

Top 10 Funders (1)

34.0%

NABARD

2.4%

9.9%

State Bank of India

Bandhan Bank Limited

IDFC First Bank Limited

24.6%

HSBC

FMO Netherlands

Standard Chartered Bank

29.2%

RBL Bank Ltd

Bank Of Baroda

FY16

FY17

FY18

9MFY19

Indostar Capital Finance Limited

% Share as on 31 Dec 2018

17%

11%

TL (Bank)

TL (Others)

NCD

ECB

Securitization/Assignment

Total Of Top 10 Lenders

58%(2)

Note: All data on standalone basis unless stated otherwise; (1) Including direct assignment and securitization, excluding BC; (2) Differences due to rounding off

Dynamic Liability Profile Insulated from Capital Market Turbulence

Product-wise Dec’18 CP, 1%

Securitisation/ Assignment, 21%

Product-wise Mar’18

CP, 2%

Securitisation/ Assignment, 15%

ECB, 1%

NCD, 20%

Term Loan, 57%

NCD, 21%

Term Loan, 60%

• No dependence on funding from commercial papers • NCDs are primarily subscribed by overseas investors (FPIs) •

~ 77% of borrowings are on fixed rates

Dynamic Liability Profile Insulated from Capital Market Turbulence

Category of Lender Dec’18 Domestic Fund, 1%

Overseas Fund, 14%

Category of Lender Mar’18

Overseas Fund, 12%

Domestic Fund, 1%

DFI, 18%

DFI, 13%

Banks, 52%

Banks, 47%

NBFC, 15%

NBFC, 27%

Lower dependence on PSL funding

• • No dependence on mutual funds to meet funding requirements

Strong Liquidity and ALM

Strong Liquidity Position to Sustain Growth

Benefit of positive ALM continues

Amount raised in last 7 days of December 2018: Rs. 944.6 cr

ALM as on Dec’18 Average maturity of Assets: 7.3 months Average Maturity of Liabilities: 21.1 months

1,918

1,108

710

787

21.5

22.3

21.1

18.4

8.4

8.5

11.7

7.3

Mar'16

Mar'17

Mar'18

Dec'18

FY16

FY17

FY18

Q3FY19

Liquidity (Rs. cr) (1)

Avg. maturity of Assets

Avg. maturity of Liabilities

(1) Total cash and cash equivalents, excluding lien marked FDs

Strong Liquidity Position contd

Static ALM as on Dec 31, 2018 (Rs cr) Inflows

Jan’19

Feb’19 Mar’19

Apr’19 May’19

Jun’19

Total

Liquidity at the beginning of month*

1,918.1

1,767.9

1,861.7

1,921.7

2,025.4

2,199.1

1,918.1

Principal - Loan portfolio

310.1

273.8

288.3

294.0

306.2

259.7

1,732.1

Interest - Loan portfolio

70.5

57.0

55.8

51.6

48.2

38.7

321.8

Total (A) Outflows

2,298.7

2,098.7

2,205.7

2,267.3

2,379.8

2,497.5

3,972.0

Principal repayments

488.4

156.7

248.0

208.2

153.9

267.3

1,522.6

Interest repayments

42.3

80.3

36.0

33.8

26.8

46.7

265.9

Total (B)

530.7

237.0

284.0

242.0

180.7

314.0

1,788.5

Cumulative positive gap (A-B)

1,767.9

1,861.7

1,921.7

2,025.4

2,199.1

2,183.5

*Excluding margin money deposits ~Rs 330 cr lien with lenders and undrawn sanction in hand ~Rs 371 cr; differences due to round off

Key Milestones 20 years to reach AUM of Rs 100 Cr; next 8 years to reach AUM of Rs. 5,000 Cr

Business Timeline Registers as NBFC with the RBI

Date of inception of Satin- October 16, 1990

JLG business shows strong asset quality and large potential to scale up

Receives MIX Social Performance Reporting Award at Silver level

Reaches 4.9 lac active clients & gross AUM of ~Rs. 580 cr as on Mar’13; Converts to NBFC-MFI in Nov’13; Received ‘MFI 2+’rating by CARE

Listing on NSE, BSE and CSE(2); Received top MFI grading of MFI 1

Reaches 27.1 lac active clients and gross AUM of Rs.4,882 cr by Dec’17; Incorporated HFC in Apr’17

1996

2008

2010

2012

2014

2016

2018

1990

1998

2009

2011

2013

2015

2017

2019

IPO and listing on DSE, JSE and LSE(1)

Started JLG Model in May 2008

Fund Raising Timeline

Reaches 1.7 lac active clients and gross AUM of Rs. 169 cr as on Mar’10

Starts SHG bank linkage program in Rewa, MP; Receives 83% in microfinance COCA audit -

Reaches 8 lac active clients and gross AUM of Rs. 1,056 cr as on Mar’14;

Started MSME Lending in FY17; Acquired TSL in Sep’16

Started HFC Lending in Feb18; BC agreement with IndusInd Bank, reached gross AUM of Rs 5,757 cr by Mar’18

Received NBFC license for Satin Finserv Ltd for MSME business

First private equity investment - Raised Rs. 4.87 cr from Lok Capital; Rs. 1 cr infused by Promoter Group

Raised Rs. 2.5 cr from Lok Capital in Nov’10 and Rs. 21.8 cr from ShoreCap II in Dec’10; Rs. 7.7 cr infused by Promoter Group

Raised floating rate long term unsecured Tier II debt in Jul’14; Raised Rs. 28.4 cr of equity from Norwegian Microfinance Initiative (NMI) and $10 mn of debt from World Business Capital in the form of ECB

Raised Rs. 250 cr via QIP in Oct’16; Exit of DMP in Jul'16 and ShoreCap in Aug’16

Pref. Allotment: Equity funding by NMI (Rs 20 cr), and Kora Cap (Rs. 80 cr); Promoters invested via FCW (Rs 60 cr), IndusInd invested Rs (45 cr) via OCCRPS

2009

2011

2013

2015

2017

2019

2008

2010

2012

2014

2016

2018

Raised Rs. 1.9 cr from Lok Capital

Raised Rs. 18 cr from Danish Micro Finance Partners K/S (DMP) in Feb’11

Raised Rs. 30 cr from DMP, ShoreCap and MV Mauritius Ltd; Rs. 11 cr infused by Promoter Group; Exit of Lok Capital

Raised Rs. 41.5 cr from SBI FMO(3) (including warrants); Rs. 37.9 cr infused by Promoter Group

In Apr’17, raised $10 mn from ADB(4) ; Investment of Rs. 35 cr by IDFC First Bank (then Capital First); Raised Rs. 150 cr via QIP in Oct’17

Exit of MV Mauritius

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; (3) SBI FMO Emerging Asia Financial Sector Fund Pte. Limited; (4) ADB – Asian Development Bank

Select Accolades & Key Highlights

: • First Direct Equity e c n a n i F

Investment in Microfinance by Asian Development Bank • First MFI to receive funding from Mudra Bank

• Raised multiple

rounds of sub debt from reputed financial institutions (domestic and international) and ECB from World Business Capital

• First NBFC-MFI to raise funds from a domestic bank against guarantee by Asian Development Bank and IFMR Capital

: • “C1" grade in Code of a Conduct Assessment i (COCA) in January c o 2019 S

• sA social rating from

Microfinanza in November 2018 • Winner of “Best

NBFC-MFI Award” in 2017 & Runner-up for “CSR Initiatives & Business Responsibility Award” in NBFC-MFI category– CIMSME Banking and NBFC Awards 2016

• “Client Protection

Certificate” under the Smart Campaign – 2016 from M-CRIL

: T I

& R H

• ““Digital Innovation in Microfinance India” by Eastern India MFI Summit in December 2018 • “SKOCH Award” for

Digital Transformation in December 2018 • “Excellence Award” by B2B Info Media in November 2018

• Dream Companies to Work For” awarded by World HRD Congress in February 2018

: • ISO 27001:2013 s n o i t a r e p O

certification in October 2018 for Information security • “Rural Champions of The Year” Award by ET Edge in September 2018

• Featured in “Fortune The Next 500” in July 2018

• Certificate for being

the ‘Best Micro Finance Company in India’ from Worldwide Achievers at the Business Leaders’ Summit and Awards, 2016

• “India Iconic Name in Microfinance” Award – 2015 from IIBA

Loan Dost – New Initiative in Digital Lending

Amongst the First MFIs to foray in digital lending with no human intervention, tapping the millennials

 With the objective to broad base users, Satin launched “Loan Dost”, a fintech venture, to provide short to medium personal loans to salaried individuals in Nov 2018

 App based platform available on Google Play Store for

Android users, instant loans from Rs. 20,000-60,000

 With its technological advancement, Satin will harness the internet connectivity and smartphone penetration in Tier 2 & Tier 3 cities

 Key highlights are:

– No human intervention – Strong evaluation process including Psychometric test, fetching bank and tax details with borrower consent

– Attractively priced in comparison to peers – Seamless integration with all banks – Repayment through UPI

Robust Industry Fundamentals with Strong Regulatory Support - Growth to Continue

Industry Snapshot

High growth in loan portfolio and client reach

 NBFC-MFIs have 2.93 cr borrowers and outstanding GLP

of Rs. 59,514 cr as at Q2FY19

 Average loan disbursed per account was Rs. 25,070 in

Q2FY19

 Top 10 states account for 84% of outstanding industry

GLP and 84% of disbursement in Q2FY19

 Top 10 MFIs contribute 74% of industry GLP and 75% of

disbursement in Q2FY19

1.9

2.0

1.71

2.5

2.7

2.9

2.3

2.1

27,093 30,254 28,899 31,107 33,804 37,635 42,029

47,945 51,729

59,514

Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FT18 Q4FY18 Q1FY19 Q2FY19

GLP (Rs. cr)

Client outreach (cr)

 Presence across 30 states/union territories

Low penetration of banking credit in rural areas (FY17)

 Combined network of 12,094 branches, 99,214 staff; of

which 63% are loan officers

 Credit market is highly underpenetrated

– Rural areas accounted for only 16% of overall o/s

bank-credit while comprising of 2/3rd households and contributing ~47% of FY17 GDP in India

84%

53%

47%

16%

Rural

Urban

GDP Contribution

Credit Outstanding Contribution

Source: CRISIL Research, MFIN; MFIN Data assumed to represent over 90% of the overall market; Overall GLP includes only NBFC-MFIs

Low Penetration of MFI in India – Structural Growth Driver

Northern and Western states are relatively under penetrated

Top 10 states having 84% market share in Sep’2018

State-wise MFI penetration data(1)

Market Share (%)

15%

16%

18%

12%

10%

20%

17%

35%

27%

23%

14%

12%

15%

27%

Under (0-10%) Penetration

Moderate (11-20%) Penetration

High (>20%) Penetration

Not Considered For Analysis

Others 16%

Karnataka 12%

Odisha 11%

Bihar 11%

Rajasthan 4%

Kerala 4%

Madhya Pradesh 6%

West Bengal 9%

Uttar Pradesh 9%

Maharashtra 9%

Tamil Nadu 9%

Source: MFIN, CRISIL Research; Notes: (1) AP & Telangana have not been considered for analysis; Penetration is calculated as no. of MFI clients divided by no. of households in 2017; PAN India penetration based on analysis of 20 states; States arranged in decreasing order of GLP, Data only shown for states where 5 or more MFIs are operating

Satin Surges Ahead Faster Than Industry

Industry is growing in last 5 years at a CAGR of ~26%

Despite the setback of demonetization, Satin maintained its growth momentum

78,230

61,623

50,535

38,386

24,499

5,757

4,067

3,271

2,141

1,056

Mar'14

Mar'15

Mar'16

Mar'17

Mar'18

Mar'14

Mar'15

Mar'16

Mar'17

Mar'18

Industry GLP Rs cr

Satin GLP Rs cr

• •

Data for industry is compiled from MFIN Micrometer reports and includes MFIs and SFBs Satin GLP is taken on a consolidated basis, since TSL was acquired during FY17

Collection Efficiency Heading Towards Normalcy

Emerged from the woes of demonetization -Collection efficiency is showing an upward trend on account of increase in credit discipline in disbursement during last 12 months

Period of disbursement

Demand till 31 Dec’18 (Rs cr)

Collection till 31 Dec’18 (Rs cr)

% of AUM

Cumulative CE%

Jan’17 to Dec'17

3,954.9

3,883.1

Jan'18 to Dec'18

2,069.5

2,058.2

22%

78%

98.2%

99.5%

99.5 %

78%

98.2 %

22%

% of AUM

Back to pre demon levels

99.5 %

67%

97.7 %

33%

Q3 FY19

Q2 FY19

Collection Efficiency

Jan'18 to Dec'18

Jan'17 to Dec'17

Data is of standalone JLG portfolio;

PAR and Expected Credit Loss (ECL)

The worst is over

ECL methodology prescribed in IND AS is based on the principle of providing for expected future losses, rather than incurred losses.

Expected Credit Loss (ECL): Probability of credit losses over the expected life of the financial asset.

ECL Calculation = Exposure at Default (ED) x Probability of Default (PD) x Loss Given Default (LGD)

ECL computation is based on analysis of historical portfolio PAR trends and macro economic parameters. Given the backdrop of impact of demonetisation on portfolio quality, management has remained conservative in approach. ECL computation will evolve as portfolio quality improves and returns to normalcy.

35.8

26.6

GLP (Rs. cr)

5,590

14.4

19.1

15.3

11.4

6.7

5.9

4.4

5.4

5.0

4.1

4.5

3.7

3.2

Mar'17

Sep'17

PAR 1%

Mar'18 PAR 30%

PAR 90%

Sep'18

Dec'18

On standalone basis

Provisioning

OD vs ECL as of Dec’18

114

OD - PAR 60

OD - PAR 90

ECL

Rs cr

• Collection against write-off during 9M

FY19 is Rs ~11.4 Cr The Overdue (OD) for more than 90 days is Rs. 85 cr ECL is Rs. 114 cr

•

On standalone basis; ECL amount includes BC provision too

Growth Changes Customer Mix

Trend in Loan Cycle  Focus is now on acquisition of new customers due to geographical expansion, leading to increase in first cycle

customers

3,271

14.4%

25.0%

52.3%

FY16

3,585

10.4%

37.0%

48.8%

FY17

By GLP (Rs. cr)

5,011

18.6%

38.2%

27.4%

FY18

5,419

15.0%

29.1%

44.5%

9MFY19

Cycle 1

Cycle 2

Cycle 3

Cycle 4

Others

By No. of Loan Accounts

2,090,630

2,560,544

2,439,010

3,122,882

9.6%

21.5%

63.9%

FY16

10.6%

31.9%

53.8%

FY17

15.3%

34.4%

38.4%

FY18

13.6%

28.6%

47.4%

9MFY19

Cycle 1

Cycle 2

Cycle 3

Cycle 4

Others

Note: Data above excludes MSME segment and is on standalone basis.

Rural Focus of Operations

Financing the rural growth story

Purpose-wise details

20.1%

15.3%

12.1%

3.2%

79.9%

69.4%

Rural

Urban

Agriculture & allied

Production

Trading

Others

MFI portfolio excluding MSME

Strong Client Demand resulting in Rebound in Disbursements, along with Rapid scaling up of Cashless Disbursements

Growth While Focusing on Quality1

o o

Disbursement in H1 usually remains low Q3FY17 was impacted due to demonetisation

Average monthly disbursement in Rs cr

444

383

286

460

397

422

419

446

658

356

FY17

FY18

FY19

Digitization efforts that were started during demonetization are showing results

Cashless disbursements as % of total disbursements*

67%

70%

57%

26%

35%

16%

Jun'17

Sep'17

Dec'18

Mar'18

Jun'18

Sep'18

Dec'18

Note: All charts above are on standalone basis; (1) Average monthly disbursements * Data for microfinance only and numbers are MTD

Strong Capitalization

Healthy CRAR(1) to help Capitalize on Growth Opportunities

24.38%

25.23%

30.07%

Q1FY19

Q2FY19

Q3 FY19

• Tie-up with IndusInd Bank and renewed interest of banks for Direct Assignment are reducing the requirement of capital for growth

Note: Data on standalone basis; (1) Calculated as per IND AS

Track Record of Delivering Growth

Gross Income (Rs. cr)

Cost to Income Ratio (%)

52.8%

51.1%

42.7%

310

347

384

Q1FY19

Q2FY19

Q3FY19

Q1FY19

Q2FY19

Q3FY19

NII1 and PAT (Rs. cr)

NII

PAT

Opex to GLP (%)

6.7%

156

179

218

6.3%

Q1FY19

Q2FY19

Q3FY19

Q1 FY19

Q2 FY19

Q3FY19

Note: Data on standalone basis; (1) Represents total income less interest expense

Operational Highlights (1/2)

Districts, States and Branches

Employees & Loan Officers

431

215

767

235

995

302

1,1181

340

FY16

FY17

Districts

FY18

States

Q3FY19 Branches

4,481

6,910 1,109

5,801

6,382

9,004

1,344

7,653

6,8742

11,9404 1,335

10,538

FY17

FY18

Q3FY19

2,684

3,918

FY16

Satin Employees

TSL Employees

Loan Officers

Active Clients (lacs)

Gross Loan Portfolio (Rs. cr)

26.5 3.5

24.0

28.2 4.1

24.0

35.3 4.1

31.2

FY17

Satin

FY18

Q3FY19

TSL

18.5

FY16

5,757 670

5,085

6,2084 573

5,590

4,067 450

3,617

FY17

Satin

FY18

Q3FY19

TSL

3,271

FY16

Note: (1) Data on Consolidated basis - On a standalone basis, the number of branches were 937 (Dec’18); (2) Data on a consolidated basis - On a standalone basis the number of loan officers were 5,937 (Dec’18); (3) On standalone basis; (4) Consolidated figures includes Satin Housing Finance Limited.

Operational Highlights (2/2)

Disbursement1 (Rs. cr) & No. of Loans1 (‘000)

Satin JLG loans - Average Ticket Size2 (Rs)

1,816

5,572

1,482

3,938

1,689

1,566

3,606

3,594

30,000

27,000

24,000

23,000

FY16

FY17

FY18

9MFY19

FY16

FY17

FY18

9MFY19

No. of Loans (‘000)

Note: (1) Standalone basis; (2) TSL’s average ticket size was 26,900(9MFY19)

Transparent Operations

Smart Campaign – Client Protection Certification

Loan Card with transparent terms and conditions

Transparent Operations

Strong Internal Audit Processes and Systems ensure portfolio quality

Full fledged in-house Internal Audit department for Group Lending and MSME

• 88 member team of Zonal Auditors & Regional Auditors, HO support • Each Zonal Auditor looks at 3 Regions • Each Regional Auditors looks at 8-10 branches , with a complete audit once a quarter. • Branches per Internal Audit staff – 8-10

Various Audits conducted

Branch Audit

Regional Office Audit

Social Audit

Compliance Audit

Frequency Quarterly (Large>6,000 Clients, Medium 3,000-6,000 Clients, Small<3,000 clients) Quarterly

Quarterly

Varies depending on feedback from other audits

Credit Bureau Data For Screening Loan Applications

Hit Rate for all Products-Q3FY19

CB Rejection Reason-Q3FY19

No Hit, 16%

>1 MFI 62%

Hit, 84%

Over indebtedness 24%

Defaulters 13%

Ticket Size 1%

SCNL Guidelines

Rejection Rate for all products is ~15% for Q3FY19

Limit

RBI Guidelines

Indebtedness Limit (INR)

Maximum No. of MFIs

80,000

Yes

MFIN Guidelines

Yes

Note: • Rejections are done based on data derived from CB report • Rejection detail belongs to JLG customers

Company’s Product Mix - MSME and Housing Finance taking good shape

MFI Segment(1)

Non-MFI Segment

Business Correspondent services

Housing Finance

Product features as on Dec’18

MFI Lending

Loans to MSME(2)

Taraashna Services Ltd(3)

Satin Housing Finance Ltd(4)

Start Date

May’08 (JLG)

Apr’16

May’12(3)

Feb’18

Ticket Size Range

Upto Rs. 50,000

Rs. 100,000 – Rs. 100,000,000

Upto Rs. 50,000 (JLG - Microfinance)

Rs 100,000 – Rs 4,000,000

Tenure

12 - 24 months

12 -120 months

12 - 24 months

24 – 240 months

Frequency of Collection

Bi-Weekly

Monthly

Bi-Weekly / 2 Bi-Weekly

Monthly

No. of States/UTs

No. of Branches

931

Gross Loan Portfolio (Rs. cr)

5,419

171

178

573

No. of loan accounts

3,122,882

1,462

406,042

369

Avg. Ticket Size for 9M FY19

Rs.27,000 (JLG)

Rs. 1,700,000

Rs. 26,900 (JLG)

Rs. 1,432,000

Notes - (1) As on Dec’18, MFI Segment included MFI Lending (loans under JLG model, IndusInd BC, water & sanitation loans and loans to individual businesses) and Product Financing (Loans for solar lamps, cycles); (2) MSME: Micro, Small & Medium Enterprises; (3) TSL acquisition is effective Sep 1, 2016; (4) Satin Housing Finance Ltd was incorporated on April 17, 2017

*As of Q3 FY19, there were 931 branches with Microfinance operations & 33 branches with MSME operations. Out of the 33 MSME branches, 27 of them also had microfinance operations & 6 were unique.

Business Correspondent (BC) Partnership with IndusInd Bank

Growing the Asset Under Management

No of loans disbursed

•

Satin entered into BC partnership with IndusInd Bank in H2 FY18

9 Regional offices and 171 branches are actively disbursing under this arrangement

Eventually 40% of branch network will be exclusive to IndusInd in a phased manner

Share of BC portfolio(1) to total AUM has grown from ~1% in Q1FY19 to ~7.3% in Q3 FY19 at Rs 407 cr

Advantages from the agreement are on-tap funding, low capital requirement, contained cost of liquidity among others

66,686

92,072

Q2FY19

Q3FY19

Disbursements in Rs. cr

181.2

234.0

Q2FY19

Q3FY19

18,033

Q1FY19

48.8

Q1FY19

(1) On a standalone basis

Diversification – By Geography

Focus on Geographic Diversification1 and limiting concentration per state <20% by 2020

GLP (Rs.cr)

32,70.8

40,66.5

57,56.8

62,08.4

13.2%

22.7%

32.3%

41.9%

12.7%

15.5%

17.7%

40.9%

10.1%

19.2%

18.1%

10.2%

12.9%

18.3%

29.9%

26.3%

8.7%

9.1%

18.5%

21.8%

FY16

FY17 Bihar

FY18 Punjab

Others

Q3FY19

Substantially Reducing Geographic concentration

States

GLP - Q3 FY19 Rs cr

Q3 FY19 % mix

FY15 % mix

Change

CAGR %

UTTAR PRADESH BIHAR MADHYA PRADESH PUNJAB ASSAM RAJASTHAN WEST BENGAL ORRISA HARYANA GUJARAT MAHARASHTRA DELHI & NCR UTTARAKHAND JHARKHAND CHHATTISGARH TRIPURA TAMIL NADU JAMMU & KASHMIR HIMACHAL PRADESH MEGHALAYA PONDICHERRY CHANDIGARH KARNATAKA TOTAL

1352.2 1147.9 567.6 543.2 490.4 441.4 375.8 331.2 230.4 187.2 128.0 111.1 95.4 94.7 63.0 22.9 10.7 5.7 5.2 2.9 1.0 0.2 0.1 6208.4

21.8% 18.5% 9.1% 8.7% 7.9% 7.1% 6.1% 5.3% 3.7% 3.0% 2.1% 1.8% 1.5% 1.5% 1.0% 0.4% 0.2% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 100.0%

43.3% 17.2% 18.5% 8.2% 0.0% 1.6% 0.0% 0.0% 1.1% 0.0% 0.9% 5.1% 4.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0%

10.6% 35.4% 10.1% 35.0% - 96.5% - - 84.9% - 67.7% 0.7% 2.6% - - - - 22.5% - - - -19.5% - 32.8%

Note: 1. Loan portfolio in each state as a % of Gross Loan Portfolio on a consolidated basis, TSL became wholly owned subsidiary in Sep’18 and SHFL incorporated on Apr 17, 2017

Impact of Digital Transformation

Mobile Technology Platform – Last Mile Connectivity

Process re-engineered to enable customer acquisition within 3 minutes

Live Dashboard Every Two Minutes

Increased digitization of processes

Geo Location Tracking

Real-time Credit Checks

Instant Bank Account Verifications

Enabling Brand Recall Value

QR Code Scan

Cashless Disbursements

ISO 27001:2013 – Amongst the First MFIs to be Certified

Satin’s Aspirational Journey Towards Building a Sensitive Culture Around Information Security

• •

•

• •

•

Information security is a key mandate for every organisation International Organization for Standardization (ISO) is the world’s largest developer of international standards

The ISO 27001:2013 standard specifies the requirements for establishing, implementing, maintaining and continually improving an information security management system (ISMS) within the organization

All micro finance companies are supposed to adhere to the RBI Master Guidelines on Information Security Satin took the guidance a step ahead by getting ISO certification

ISO certification affirms Satin has integrated a robust Information Security Management System (ISMS) in its business processes Information security and client confidentiality are part of the cornerstones of Satin’s strategic objectives

Backed by Large, Marquee Institutional Investors

Investor confidence

Promoter Commitment



7 rounds of equity capital raise with marquee investors with complete profitable exits to 4 investors

Raised Rs. 250 cr from marquee institutions via QIP in Oct 2016. Further raised Rs. 150 cr in Oct 2017 via QIP from large domestic mutual funds

Raised Rs. 35 cr from large NBFC

Promoter stake in Satin is quite high among listed MFIs having invested at regular intervals at par with incoming PE investors

Adequate board representation – There are 3 Nominee Directors on the board representing the Investors

Private Equity Financing Rounds supported by Promoters Investing at Par with Incoming PE investors (Rs. cr)

Investment Price (Rs. per share)

45-55(2)

a t i p a C k o L

r e t o m o r P

1.9

1.8

1.2

57(3)

, l a t i p a C k o L

r e t o m o r P

2.5

4.8

40(1)

a t i p a C k o L

4.9

1.0

130(4)

130

455.5

416.7

107

M N

28.4

O M F - I B S

r e t o m o r P

23.3

18.7

19.1

p a C e r o h S

P M D

18.1

21.9

85.5(4)

p a C e r o h S

, t s e v o r c i

r e t o m o r P

P M D

30.0

11.0

B D A

64.3

O M F - I B S

18.2

100.0

r e t o m o r P

60.0

30.0

p a C a r o K

, I

M N

r e t o m o r P

335(4)

5 3 1 3

y t i u q E e t a v i r P

r e t o m o r P

3 4 5 1

Mar-08 Nov-09 Jan-10 Jun-10 Nov-10 Dec-10 Feb-11 Mar-13 Apr-14 Jun-15 Feb-16 Mar-16 Apr-17 Jun-17 Dec-17 Total

Promoter (FCW - Rs. cr)

Promoter (Pref Allotment - Rs. cr)

Private Equity (Rs. cr)

infusion

6.7

Pre Mar-08

Note: Each funding round is flagged with Issue Share Price in Rs.; (1) Issue price for Lok Capital of Rs. 40, and Issue price for Promoter of Rs. 10; (2) Rs. 50 lac investment at issue price of Rs. 45, and Rs. 67 lac investment at issue price of Rs. 55; (3) Issue price for Lok Capital: Rs. 57, Issue price for Promoter: Rs. 55; (4) Same Issue price for PE investor and Promoter;

Future Business Strategy

Core operations (MFI Lending)

 Focus on Portfolio Quality  Geographic diversification – Started operations in Assam and Orissa in FY18; Meghalaya, Tripura, Tamil Nadu,

Pondicherry and Karnataka in FY19. Aim to achieve per state exposure to <20% by 2020

 Increase penetration in existing states – through existing branches and by establishing new branches to have a PAN India

presence

 Scale up BC operations with IndusInd Bank  Diversify revenue sources by increasing share of cross-sell income  Achieve 100% cashless disbursement by March 2019  Credit scores for individuals and groups

Allied Businesses through wholly owned subsidiaries

MSME

SHFL – Housing Finance

 Expand operations to new

geographies – Presently operating in Delhi NCR, Haryana, Punjab, MP and Maharashtra

 Focus on portfolio quality  Received NBFC license from RBI



Aspire to be a niche housing finance player in tier II, III and IV cities and towns Focus on portfolio quality

TSL – Business Correspondent  Entered into BC arrangement with a leading bank, will help in scaling operations

 Plan to broad base offerings

besides microfinance

Guidance for FY19 versus achieved(1)

Rs cr

165

145

Guidance FY19

Achieved till Q3FY19

Guidance FY19

Achieved till Q3FY19

Note: (1) On Consolidated basis;

Annexure

Industry Overview -BC Operations, MSME Finance and Small Ticket Housing Finance

BC Operations

Number of BC transactions to soar given lower cost of operations

BC portfolio of NBFC-MFIs on the rise

BC Transactions – Value (Rs. Bn) and Volume (Mn)

BC Portfolio of NBFC – MFI (Rs. Bn)

524

329

860

477

1,687

3,038

827

1,317

9,037

2,768

5,316

1,909

23,858

5,720

14,911

4,014

33%

31%

23%

22%

24%

25%

32%

27%

12%

5.4

8.4

11.6

16.1

24.8

27.0

29.3

27.3

29.8

FY14

FY15

FY16

FY17E

FY18P

FY19P

FY20P

FY21P

Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17E Q2FY17E Q3FY17E Q4FY17E

No. of Transaction through BCs

Amount Transacted through BCs

BC Portfolio of NBFC – MFI

As % of total off-balance sheet portfolio

Massive growth potential for growth of BC portfolio of NBFC-MFIs

Higher margins and attractive RoA makes BC business lucrative even for MFIs



BC portfolio to witness healthy growth as overall banking credit growth recovers, MFI industry stabilizes and competition from SFBs reduces

 Micro-lending through BCs have attracted banks due to several benefits such

as:

Estimated Costs and Ratios BC Business

8 – 9 %

5 – 6 %

– Meeting of PSL targets without any direct involvement of banks as loans

are sourced by MFIs, who are in direct contact with the borrower

–

Better resource utilisation for banks as rural branches get relieved from a significant part of low-ticket size micro-lending obligations

Improved portfolio quality - NBFC-MFIs have expertise in micro-lending as part of their core portfolio, unlike banks who primarily focus on industrial and other higher ticket-size lending

0.8 – 1.1 %

2 – 3 %

Gross Spread

Operating Cost

Credit Cost

Net Profit Margin

Source – CRISIL Research; MFIN

Micro, small and medium enterprise (MSME) finance

Share of NBFCs and private banks to increase in MSMSE credit

NBFCs’ MSME credit to sustain impressive growth

Share of MSME Finance By Institutions

GLP (Rs. Bn)

5.3%

24.8%

2.5%

6.4%

3.0%

7.2%

2.9%

8.1%

2.9%

26.0%

27.0%

28.0%

8.9% 3.0% 28.9%

9.5% 3.0% 30.0%

67.4%

64.6%

63.0%

61.0%

59.2%

57.5%

424

1,821

1,505

1,204

948

746

597

FY16E

FY17E Public Sector Banks

FY18P

FY19P

FY20P

Private Sector Banks

Foreign Banks

FY21P NBFCs

Southern, western states contributing to majority of MSME loan outstanding with banks

FY15E

FY16E

FY17E

FY18P

FY19P

FY20P

FY21P

Profitability of NBFC lending

Statewise FY17 GLP (Rs. Bn)

Others 38%

Tamil Nadu 11%

Profitability of NBFC SME Lending

1.0%

9.3%

16.5%

Maharasthra 11%

Gujarat 7%

West Bengal 8%

MP 2%

Chattisgarh 3%

Odisha 2%

Punjab 4%

Kerala 4%

Haryana 2%

AP 5%

Karnataka 4%

2.3%

2.7%

3.2%

Yield

Fee Income

Cost of Funds

Operating Expenses

Credit Costs

Net Profit

Source – CRISIL Report; MFIN

Small Ticket Housing Finance

Healthy growth expected in low ticket housing finance segment

Key Growth Drivers

Loan book – less than Rs. 2.5 Miilion

15,539

3,997

4,564

5,013

5,782

6,786

7,805

FY12E

FY13E

FY14E

FY15E

FY16E

FY17E

FY21P



Thrust on low ticket housing with Govt. initiatives like ‘Housing for All’ to boost growth and help increase share

Pradhan Mantri Awas Yojana – Credit linked subsidy scheme: Subsidy to be provided on home loans taken by eligible urban population

Revision of interest spread cap to 3.5% for Rural Housing Fund (RHF)

Lower risk-weights and higher LTV for low ticket loans to boost disbursements

–

LTV on loans between Rs 30-75L increased to 80% from 75% and risk weights reduced to 35% from 50%

Infra status to affordable housing companies to push more developers to enter this sector

 Urbanisation to increase at a CAGR of 2.0-2.5% between 2017-2022

Rise in finance penetration to drive industry growth

Profitability of HFCs

39.0%

41.2%

41.5%

42.2%

42.7%

43.2%

44.5%

44.8%

12.3%

8.9%

8.2%

8.4%

8.9%

9.0%

9.2%

9.4%

9.7%

1.9%

0.7%

0.4%

1.8%

FY12E

FY13E

FY14E

FY15E

FY16E

FY17P

FY18P

FY19P

Urban Penetration

Rural Penetration

Yield on Advances

Cost of Borrowings

Operating Expenses

Fee Income

Credit Costs

Net Profit

Source: CRISIL Report

Annexure

Financial & Operational Details – Consolidated

Business Details – Consolidated

PARTICULARS AUM (Rs. cr)

On-Book AUM* Securitization

Assignment Business Correspondence – IndusInd Bank TSL - Business Correspondence SHFL – Housing Finance

AUM Mix (Rs. cr)

MFI Lending Product Financing MSME Business Correspondence – IndusInd Bank TSL - Business Correspondence SHFL – Housing Finance

No. of branches

SCNL TSL SHFL

No. of Employees

SCNL TSL SHFL

No. of Loan Officers

SCNL TSL SHFL

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

6,208 4,293 446 889 407 573 46

6,208

5,005 6 171 407 573 46

1,118 937 178 3

11,940 10,538 1,335 67

6,874 5,937 906 31

4,882 3,875 414 15 - 577 -

4,882

4,236 0 68 -

577 -

898 728 170 -

8,384 7,121 1,259 4

5,978 5,125 853 -

6,191 5,128 564 218 215 604 27

6,191

5,239 2 105 215 604 27

1,066 885 179 2

10,972 9,579 1,352 41

6,554 5,619 921 14

27.2% 10.8% 7.6% - - -0.7% -

27.2%

18.1% - 150.5% - -0.7% -

24.5% 28.7% 4.7% -

42.4% 48.0% 6.0%

15.0% 15.8% 6.2% -

0.3% -16.3% -20.9% 308.4% 89.5% -5.1% 72.0%

0.3%

-4.5% 209.7% 62.6% 89.5% -5.1% 72.0%

4.9% 5.9% -0.6% 50.0%

8.8% 10.0% -1.3% 63.4%

4.9% 5.7% -1.6% 121.4%

*includes securitization; Figures may not match due to rounding off difference

Business Details – Consolidated (Contd)

PARTICULARS

No. of Loan Accounts

SCNL TSL SHFL

Average Ticket Size*

MFI Lending (SCNL) Product Financing (SCNL) MSME (SCNL) TSL SHFL

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

3,530,755 3,124,344 406,042 369

26,000 2,884 2,260,000 26,900 1,380,000

2,713,750

2,326,567 387,183 -

30,000 2,495 900,000 23,600

3,231,801 2,815,468 416,125 208

27,000 6,000 1,100,000 26,700 1,493,000

30.1% 34.3% 4.9% -

-13.3% - 151.1% - -

9.3% 11.0% -2.4% 77.4%

-3.7% -51.9% 105.5% 0.7% -7.6%

*Represents average ticket size for the cumulative months in the financial year upto the corresponding period;

P&L Statement – Consolidated (Quarterly)

Particulars (Rs cr)

Q3 FY19

Q3 FY18

YoY%

Q2FY19

QoQ%

Revenue Interest and Fee Income Net Gain On Derecognition of Financial Instruments Treasury Income Service Charges Other Operating Income Total Revenue

Expenses Finance Cost Employee Benefit Expenses Credit Cost Other Expenses Depreciation and amortisation expense Total Expenses

Profit before tax Tax expense Profit after tax

Other comprehensive income Items that will not be reclassified to profit and loss

Remeasurements of post employment benefit obligations

Income tax relating to these items

Other comprehensive income

Total comprehensive income

283 68 25 23 3 402

166 81 10 25 3 285

117 45 71

230 - 17 13 - 260

133 60 -37 27 4 186

74 27 47

22.9% - 50.2% 76.7% - 55.0%

25.4% 34.9% -126.8% -6.8% -9.3% 53.8%

57.9% 71.1% 50.6%

303 18 23 18 3 365

169 71 18 32 3 293

72 26 46

-6.8% - 10.3% 27.0% 14.3% 10.1%

-1.3% 13.5% -45.8% -22.2% 13.4% -2.7%

62.2% 75.3% 54.9%

48.5%

55.9%

P&L Statement – Consolidated (9 months)

Particulars (Rs cr)

Revenue Interest and Fee Income Net Gain On Derecognition of Financial Instruments Treasury Income Service Charges Other Operating Income Total Revenue

Expenses Finance Cost Employee Benefit Expenses

Credit Cost Other Expenses

Depreciation and amortisation expense

Total Expenses

Profit before tax

Tax expense Profit after tax

Other comprehensive income Items that will not be reclassified to profit and loss

Remeasurements of post employment benefit obligations

Income tax relating to these items Other comprehensive income

Total comprehensive income

9M FY19

9M FY18

YoY%

878 86 65 59 8 1,095

489 222

64 81

865

230

85 145

- -

648 - 51 35 2 736

389 166

45 68

678

22 37

- -

35.4%

25.7% 71.1% 332.6% 48.8%

25.8% 33.7%

44.1% 20.2%

-17.1%

27.7%

292.7%

294.6% 291.7%

- -

145

289.8%

Annexure

Financial & Operational Details – Standalone

Operational Details – Standalone (Quarterly)

PARTICULARS

Gross AUM (Rs. cr) No. of districts No. of branches No. of States of operation No. of Employees No. of Loan Officers No. of Loan Accounts Disbursement during the period (Rs. cr) No. of loans disbursed during the period

MFI Lending (excl. Prod. Financing & MSME)

Gross AUM (Rs. cr) No. of branches No. of Employees No. of Loan Accounts Disbursement during the period (Rs. cr) No. of loans disbursed during the period

Productivity Metrics for MFI Lending Gross AUM/ Branch (Rs. cr) Gross AUM/ Loan Officer (Rs. cr) Disbursement/ Branch (Rs. cr) Disbursement/ Loan Officer (Rs. cr) No. of Clients/ Branch No. of Clients/ Loan Officer Average Ticket Size* (Rs.)

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

5,590 340 937 23 10,538 5,937 3,124,344 1,338 545,415

5,412 931 10,420 3,091,205 1254 512,745

5.8 0.9 1.3 0.2 3,055 479 26,000

4,304 280 728 18 7,121 5,125 2,448,386 1,257 425,037

4,236 723 7,063 2,447,410 1,245 424,721

5.9 0.8 1.7 0.2 3,217 454 30,000

5,561 318 885 20 9,579 5,619 2,822,429 1,267 473,211

5,454 879 9501 2815468 1241 469,916

29.9% 21.1% 28.7% 22.2% 48.0% 15.8% 27.6% 9.4% 25.3%

27.8% 28.8% 47.5% 26.3% 7.2% 22.1%

6.2 -0.8% 1.0 10.3% -16.7% 1.4 -7.4% 0.2 -4.0% 3,102 6.7% 485 -13.3% 27,000

0.5% 6.9% 5.9% 15.0% 10.0% 5.7% 10.7% 5.6% 15.3%

-0.8% 5.9% 9.7% 9.8% 1.1% 9.1%

-6.2% -6.1% -4.5% -4.3% -1.5% -1.2% -3.7%

*Represents average ticket size for the cumulative months in the financial year up-to the corresponding period.;

Operational Details - Standalone (Quarterly contd)

PARTICULARS Product Financing

Gross AUM (Rs. cr)

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Average Ticket Size* (Rs.)

MSME

Gross AUM (Rs. cr)

No. of branches

No. of employees

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Average Ticket Size* (Rs.)

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

6.5

31,677

9.3

32,341

2,884

171

118

1,462

329

0.0

174

0.04

151

2,495

802

165

2.1

5,747

1.8

3,071

5,992

105

1,214

224

2,260,000

900,000

1,100,000

30.8%

150.5%

13.8%

100.0%

80.4%

152.8%

37.3%

84.4%

209.7%

451.2%

406.9%

953.1%

-51.9%

62.6%

10.0%

48.7%

19.2%

200.4%

46.9%

105.5%

*Represents average ticket size for the cumulative months of the corresponding period;

Operational Details – Standalone (9 Months)

PARTICULARS

MFI Lending (excl. Prod. Financing & MSME)

Gross AUM (Rs. cr) No. of branches No. of Employees No. of Loan Accounts Disbursement during the period (Rs. cr) No. of loans disbursed during the period

Productivity Metrics for MFI Lending

Gross AUM/ Branch (Rs. Cr) Gross AUM/ Loan Officer (Rs. cr) Disbursement/ Branch (Rs. cr) Disbursement/ Loan Officer (Rs. cr) No. of Clients/ Branch No. of Clients/ Loan Officer Average Ticket Size* (Rs.)

9M FY19

9M FY18

YoY %

5,590 340 937 23 10,538 5,937 3,124,344 3,938 1,482,270

5,412 931 10,420 3,091,205 3,809 1,443,323

5.8 0.9 4.1 0.6 3,089 484 27,000

4,304 280 728 18 7,121 5,125 2,448,386 3,599 1,182,956

4,236 723 7,063 2,447,410 3,552 1,182,293

5.9 0.8 4.9 0.7 3,217 454 30,000

29.9% 21.1% 28.7% 22.2% 48.0% 15.8% 27.6% 9.4% 25.3%

27.8% 28.8% 47.5% 26.3% 7.2% 22.1%

-0.8% 10.3% -16.7% -7.4% -4.0% 6.7% -10%

*Represents average ticket size for the cumulative months in the financial year up-to the corresponding period.;

Operational Details - Standalone (9 Months contd)

PARTICULARS Product Financing

Gross AUM (Rs. cr)

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Average Ticket Size* (Rs.)

MSME

Gross AUM (Rs. cr)

No. of branches

No. of employees

No. of Loan Accounts

Disbursement during the period (Rs. cr)

No. of loans disbursed during the period

Average Ticket Size* (Rs.)

9M FY19

9M FY18

YoY %

6.5

31,677

12.5

38,244

3,264

171

118

1,462

117

703

0.0

174

0.0

151

2,495

802

512

1,660,000

900,000

30.8%

150.5%

13.8%

100.0%

80.4%

152.8%

37.3%

84.4%

*Represents average ticket size for the cumulative months of the corresponding period;

Financial Performance – Standalone

RoE Tree Gross Yield (1)

Financial Cost Ratio(2)

Net Interest Margin(3)

Operating Expense ratio(4)

Loan Loss Ratio(5)

RoA(6)

Leverage (Total Debt(7) / Total Net Worth)

RoE(8)

Cost to Income Ratio

Asset Quality

GNPA*

GNPA %

ECL as % of AUM

9M FY19

9M FY18

Q3 FY19

Q3 FY18

25.98%

12.17%

13.81%

6.67%

1.60%

2.87%

5.05

18.90%

48.28%

23.53%

13.05%

10.48%

6.82%

1.50%

1.06%

5.26

8.39%

65.06%

27.52%

11.89%

15.63%

6.68%

0.71%

4.17%

5.05

26.92%

42.71%

23.70%

12.77%

10.92%

7.21%

-3.61%

3.81%

5.26

28.06%

65.99%

Q2FY19

25.32%

12.27%

13.05%

6.67%

1.34%

2.60%

5.40

17.99%

51.12%

9M FY19

9M FY18

Q3 FY19

Q3 FY18

Q2FY19

3.21

2.03

9.17

3.21

2.03

9.17

4.09

3.25

1. 2. 3. 4. 5. 6. 7. 8. 9.

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 Gross AUM Loan Loss Ratio represents the ratio of Credit Cost to the Average AUM. RoA is annualized and represents ratio of PAT to the Average Total Assets Total Debt Include Securitization and preference shares considered as debt in accordance of IndAS. RoE is annualized and represents PAT (post Preference Dividend) to the Average Equity (i.e., net worth excluding preference share capital) RoA & RoE for Q3 FY18 is high on account of reversal of ECL of Rs. 40 cr due to recoveries made in impacted portfolio

*Note: Gross NPA represents PAR 90;

P&L Statement – Standalone (Quarterly)

Particulars (Rs cr)

Q3 FY19

Q3 FY18

YoY%

Q2FY19

QoQ%

Revenue Interest and Fee Income Net Gain On Derecognition of Financial Instruments Treasury Income Service Charges Other Operating Income Total Revenue

Expenses Finance Cost Employee Benefit Expenses Credit Cost Other Expenses Depreciation and amortisation expense Total Expenses

Profit before tax Tax expense Profit after tax

Other comprehensive income Items that will not be reclassified to profit and loss

Remeasurements of post employment benefit obligations

Income tax relating to these items

Other comprehensive income

Total comprehensive income

282 68 24 8 2 384

166 70 10 20 3 269

115 45 70

229 -

16 - - 246

132 51 -37 20 3 170

76 27 49

22.9% - 51.4% - 297.3% 56.2%

25.1% 37.1% -126.6% -0.8% -15.4% 58.3%

51.3% 65.6% 43.4%

303 18

22 3 1 347

168 62 18 27 3 278

69 25 44

-7.0%

10.0% 173.1% 39.8% 10.6%

-1.4% 14.0% -46.0% -27.2% 14.2% -3.3%

66.5% 82.4% 57.7%

43.4%

60.5%

P&L Statement – Standalone(9 Months)

Particulars (Rs cr) Revenue

Interest and Fee Income Net Gain On Derecognition of Financial Instruments

Treasury Income Service Charges Other Operating Income Total Revenue

Expenses Finance Cost Employee Benefit Expenses Credit Cost Other Expenses Depreciation and amortization expense Total Expenses

Profit before tax Tax expense Profit after tax

Other comprehensive income Items that will not be reclassified to profit and loss Remeasurements of post employment benefit obligations Income tax relating to these items Other comprehensive income

Total comprehensive income

9M FY19

9M FY18

YoY%

876 86

62 11 5 1,040

487 192 64 67 8 818

222 82 139

- - -

139

648 -

50 - 2 699

388 142 45 51 10 635

64 23 41

- - -

35.2%

25.4%

158.7% 48.8%

25.6% 35.2% 43.7% 33.3% -23.2% 28.9%

245.9% 256.2% 242.0%

- - -

242.0%

Annexure

Financial & Operational Details - TSL

Operational Details – TSL

PARTICULARS

Gross AUM (Rs. cr)

Disbursement during the period (Rs. Cr)

No. of loans disbursed during the period

No. of Active Customers

No. of Employees

No. of Loan Officers

No. of States of operation

No. of districts

No. of branches

No. of Regional Offices (RO)

Productivity Metrics

Gross AUM/ Branch (Rs. cr)

Gross AUM/ Loan Officer (Rs. cr)

Disbursement/ Branch (Rs. cr)

Disbursement/ Employee (Rs. cr)

No. of Clients/ Branch

No. of Clients/ Loan Officer

Average Ticket size* (Rs.)

Return on Equity (RoE)(1) for FY19: 26.02%

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

573

152

54,023

406,042

1,335

906

103

178

3.2

0.6

0.9

0.1

2,281

448

27,800

577

208

80,287

387,183

1,259

853

170

3.4

0.7

1.2

0.2

2,278

454

25,800

604

170

62,878

416,125

1,352

921

179

3.4

0.7

0.9

0.1

2,325

452

26,700

-0.7%

-26.9%

-32.7%

4.9%

6.0%

6.2%

0.0%

22.6%

4.7%

14.3%

-5.2%

-6.5%

-30.2%

-31.1%

0.2%

-1.3%

7.8%

-5.1%

-10.5%

-14.1%

-2.4%

-1.3%

-1.6%

0.0%

13.2%

-0.6%

0.0%

-4.6%

-3.5%

-10.0%

-9.4%

-1.9%

-0.8%

4.1%

*Represents average ticket size for the cumulative months in the corresponding period; (1) On annualised basis

P&L Statement – TSL

Particulars (Rs cr)

Revenue

Service Charges Treasury Income

Other Income

Total Revenue

Expenses

Finance Cost

Employee Benefit Expenses

Impairment of Financial Instruments

Other expenses

Depreciation and amortization expense

Total Expenses

Profit before tax

Tax expense:

Profit after tax

Other comprehensive income

Items that will not be reclassified to profit and loss

Re-measurements of post employment benefit obligations

Income tax relating to these items

Other comprehensive income

Total comprehensive income

Differences due to rounding off

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

15.2

0.7

1.0

16.9

0.4

9.0

1.9

3.0

0.3

14.6

2.3

0.7

1.7

0.3

-0.1

0.2

1.8

13.1

0.6

0.0

13.7

0.2

8.3

4.0

2.8

0.2

15.5

-1.8

-0.5

-1.3

0.2

-0.1

0.1

-1.2

15.3

0.6

1.3

17.2

0.4

8.3

1.5

3.1

0.3

13.6

3.6

1.4

2.2

0.1

0.0

0.1

2.2

15.6%

19.2%

-8521.2%

23.1%

45.3%

8.2%

-52.4%

7.7%

102.7%

-5.9%

-232.9%

-236.7%

-231.5%

61.8%

43.6%

70.7%

-1.0%

29.9%

-21.4%

-1.5%

-20.7%

8.1%

27.8%

-1.6%

5.8%

7.1%

-34.4%

-51.4%

-23.5%

-258.8%

-17.8%

Annexure

Financial & Operational Details – Satin Housing Finance Limited (SHFL)

Financial & Operational Details – SHFL* Excellent Portfolio Quality with Nil Delinquency Since Inception

Particulars (Rs cr)

Revenue

Interest and Fee Income

Treasury Income Other income

Total Revenue

Expenses

Finance cost

Employee benefit expenses

Credit Cost

Other expenses

Depreciation and amortization expenses

Total Expenses

Profit before tax

Tax expense

Profit after tax

Particulars Gross AUM (Rs. cr) CRAR (%) Average Ticket Size (Rs) Disbursement (Rs. cr) No. of Branches No. of States No. of Total Staff No. of Loan Officers

Q3 FY19

Q3 FY18

Q2FY19

YoY %

QoQ %

1.3

0.2

0.3

1.8

0.3

1.3

0.1

0.4

0.0

2.1

-0.3

-0.1

-0.2

0.2

0.3

0.1

0.3

-0.2

-0.1

0.7

0.3

1.3

1.1

0.1

0.3

1.5

-0.3

-0.1

-0.2

Q3FY19

Q2 FY19

FY18

46 94.65% 1,380,000 21 3 4 67 31

27 185.84% 1,493,000 15 2 3 41 14

22.0%

995.7%

78.4%

-23.4%

-0.5%

39.1%

2,941.9%

383.8%

493.2%

529.5%

90.4%

114.0%

83.4%

15.3%

26.5%

23.6%

55.9%

37.1%

27.1%

18.0%

30.6%

1,300,000 2 2 3 7 1

* Satin Housing Finance Limited, incorporated in Apr’17, disbursed its first loan in Feb’18

Contact Information

For any queries, please contact:

Aditi Singh Head – Capital Markets

Satin Creditcare Network Limited

E: Aditi.singh@satincreditcare.com T: +91 124 4715 400 (Ext – 222)

Thank You

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