SUNDARMFINNSE19 June 2019

Sundaram Finance Limited has informed the Exchange regarding Investor Presentation

Sundaram Finance Limited

PERFORMANCE HIGHLIGHTS 2018-19

Sundaram Ring of Excellence

Growth Quality Profitability

Disbursements for the year 2018-19 up by 9.3% to ₹ 17170 Cr.

Net Profit for the year at ₹ 1126 Cr., including an amount of ₹ 522 Cr. towards exceptional income on account of sale of

shares in Royal Sundaram.

Assets Under Management up by 16.1% at ₹ 28984 Cr. Stage III Assets stood at 1.33% and net of ECL provisions at 0.83% compared to 1.27% and 0.66% in the previous year.

Capital Adequacy Ratio at 19.5%, Tier-I at 14.7%.

Dividend for the year 175%, including special dividend of 50%.

In this presentation, the figures for FY 2019 and FY 2018 are as per Ind AS, while FY 2017 is as per Previous GAAP.

Shareholding Pattern

31-Mar-18

43.6%

31-Mar-19

36.5%

40.4%

36.0%

1.8%

8.6%

10.0%

1.7%

11.6%

9.8%

Public

Promoters Mutual Funds & AIFs

FIIs / FPIs and NRIs

Banks, Financial Institutions & Insurance Companies

Financial Summary

Year

Paid-up Capital

Networth Disbursements

1153 1316 1530 1789 2087 2405 2978 3313 3746 4134 5044

55.55 55.55 55.55 55.55 * 111.10 111.10 111.10 111.10 111.10 111.10 111.10

4614 2008-09 5926 2009-10 7592 2010-11 9433 2011-12 9991 2012-13 9719 2013-14 10012 2014-15 11444 2015-16 13218 2016-17 15712 2017-18 2018-19 17170 * Increase in Capital by way of 1:1 bonus issue. ** Adjusted for demerger ₹ 460.57 Cr. # Includes special dividend of 50%. @ Excludes exceptional item Market Capitalisation is as on 31st March of the respective years.

Receivables Under Management 9204 10219 12354 15540 17645 18158 18734 20699 24036 28648 33447

₹ in Crore

PAT

Dividend %

Market Capitalisation

150.73 226.75 295.23 355.45 410.11 442.51 454.14 477.28 ** 495.35 563.44

65 100 140 155 90 100 105 110 115 120 @ 604.04 # 175

917 2096 2722 3645 5265 7359 16859 14450 17940 18634 17318

Profit & Loss Statement

Particulars

Revenue From Operations * Other Income

Total Revenue Finance cost Operating expenses Impairment on financial instruments Total Expenses Profit Before Taxation and exceptional item Exceptional Item ** Profit Before Taxation (After exceptional Item) Profit After Taxation and exceptional item Other Comprehensive Income (net of taxes) Total Comprehensive Income for the period year * Revenue from operations is net of depreciation on operating lease

Quarter Ended March 2018

Quarter Ended March 2019

2017-18

2018-19

₹ in Crore

778.04 19.44 797.48 390.54 167.08 32.55 590.17 207.31 - 207.31 137.93 (0.51) 137.42

872.16 7.16 879.32 474.83 138.33 42.61 655.77 223.55 592.44 815.99 674.75 1.74 676.49

2763.30 49.13 2812.43 1346.02 531.19 85.51 1962.72 849.71 -

3362.12 20.56 3382.68 1762.51 617.57 107.33 2487.41 895.27 592.44 849.71 1487.71 1126.31 563.44 2.77 (1.51) 1129.08 561.93

**Exceptional item represents, sale of 11,62,91,000 equity shares of ₹ 10/- each (representing 25.90% stake) in Royal Sundaram General Insurance Co. Limited (RSGI) for a consideration of ₹ 984.17 Crore to Ageas Insurance International N.V, The Netherlands. The profit is net of transaction expenses and provisions towards certain financial covenants, whereby the company has agreed to indemnify the buyer. Subsequent to the transaction, the company holds 50% in the equity share capital of RSGI, resulting in RSGI becoming a Joint Venture company with effect from 22nd Feb 2019.

Balance Sheet

Particulars

31-Mar-2018

31-Mar-2019

₹ in Crore

EQUITY AND LIABILITIES

Financial Liabilities Non Financial Liabilities Equity

21597.86 79.21 4133.63

25530.90 74.46 5043.81

Total - EQUITY AND LIABILITIES

25810.70

30649.17

ASSETS

Financial Assets Non Financial Assets

Total - ASSETS

25222.96 587.74

30079.48 569.69

25810.70

30649.17

Profit Reconciliation

Particulars

Profit as per previous GAAP

Adjustments increasing / (decreasing) net profit after tax as reported in the previous GAAP: Amortisation of net income under EIR method for financial assets Amortisation of expenses under EIR method for financial liabilities Application of Expected Credit Loss method for loan loss provisions Financial assets / liabilities measured at Fair Value through Profit & Loss Impact on recognition of securitised loan portfolio De-recognition of Financial asset Re-measurement of defined benefit plan Others Tax adjustments on above items Net Profit after tax as per Ind AS Other Comprehensive income (net of taxes) Total Comprehensive income as per Ind AS

₹ in Crore

Quarter ended March 2018

2017-18

129.57

532.95

2.98 2.16 (9.58) 6.64 0.42 5.98 0.77 0.13 (1.14)

137.93 (0.51) 137.42

22.52 3.73 2.76 14.68 1.56 (5.39) 2.32 0.75 (12.44)

563.44 (1.51) 561.93

Equity Reconciliation

Particulars

Equity as per previous GAAP

Impact due to Scheme (demerger and merger)

Adjusted Equity as per previous GAAP

On application of Effective Interest Rate method

Financial assets

Financial liabilities

Impact on account of Expected credit loss

Financial assets / Liabilities measured at Fair value through Profit & Loss

Impact on recognition of securitised loan portfolio

Derecognition of Financial asset

Others

Tax impact on above adjustments

Equity as per Ind AS

₹ in Crore

31-Mar-2018

01-Apr-2017

3970.85

3970.85

72.20

15.16

96.71

14.56

1.56

23.19

2.10

(62.70)

4133.63

3745.63

(228.73)

3516.90

49.68

11.42

93.95

(0.11)

28.59

1.35

(51.07)

3650.71

Disbursements and AUM

₹ in Crore

19000

17000

15000

13000

11000

9000

7000

Disbursements

15712

17170

13218

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

2016-17

Growth

15.5%

2017-18

18.9%

2018-19

9.3%

35000

30000

25000

20000

15000

10000

AUM

On Books

Securitised

24964

10.6%

89.4%

20735

24.8%

75.2%

28984 4.8%

95.2%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

31-Mar-17

31-Mar-18

31-Mar-19

Growth

15.9%

20.4%

16.1%

Disbursements

2017-18

4.9%

4.1%

e s i w

t e s s A

e s i w n o i g e R

5.2%

5.3%

11.2%

2018-19

9.9%

29.2%

₹ 15712 Cr.

51.9%

₹ 17170 Cr.

53.7%

24.6%

CVs

Cars

Construction Equipment

Tractors

Others

CVs

Cars

Construction Equipment

Tractors

Others

3.5%

12.5%

3.6%

11.6%

19.4%

₹ 15712 Cr.

64.6%

19.2%

₹ 17170 Cr.

65.6%

South

North

West

East

South

North West

East

AUM

31-Mar-2018

5.0%

5.8%

6.6%

5.3%

31-Mar-2019

e s i w

t e s s A

e s i w n o i g e R

8.4%

₹ 24964 Cr.

52.0%

28.8%

9.7%

₹ 28984 Cr.

52.5%

25.9%

CVs

Cars

Construction Equipment

Tractors

Others

CVs

Cars

Construction Equipment

Tractors

Others

3.4%

13.1%

18.6%

₹ 24964 Cr.

64.9%

3.5%

12.4%

18.8%

₹ 28984 Cr.

65.3%

South

North

West

East

South

North West

East

Funding Mix

39.2%

36.7%

34.1%

Total Borrowing

31-Mar-2017

31-Mar-2018

31-Mar-2019

₹ 19373 Cr.

₹ 24085 Cr.

₹ 26673 Cr.

28.2%

25.4%

24.2%

19.9%

20.4%

7.0%

18.3%

12.4%

10.9%

11.6%

8.3%

3.3%

45.0%

40.0%

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Debentures

Bank Borrowings *

Securitisation

Deposits

Commercial Paper

31-Mar-2017

31-Mar-2018

31-Mar-2019

* Includes a) Term loans b) Commercial Papers and demand loans availed from the limits.

Key Ratios

₹ in Crore

600

550

500

450

400

495

PAT

563

604

1.2

1

0.8

0.6

0.4

0.2

0

2016-17

2017-18

2018-19*

EPS (₹)

44.58

50.71

54.37

* Adjusted for exceptional item

5500

5000

4500

4000

3500

3000

2500

2000

1500

Net worth

ROE

14.0%

14.3%

13.2% *

3746

4134

5044

31-Mar-17

31-Mar-18

31-Mar-19

16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0%

Book Value (₹)

337.13

372.05

453.97

* Adjusted for exceptional item

Key Ratios

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Debt Equity

CAR

17.9%

18.0%

19.5%

3.7

5.1

5.0

31-Mar-17

31-Mar-18

31-Mar-19

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

39.0%

37.0%

35.0%

33.0%

31.0%

29.0%

27.0%

25.0%

Cost to net Income

ROA *

2.18%

2.14%

2.00% #

36.9%

2016-17

35.1%

2017-18

36.5%

2018-19

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

* Assets includes securitised / assigned portfolio

# Adjusted for exceptional item

Portfolio Quality

Gross NPA %

Net NPA %

1.54%

1.27%

0.55%

0.66%

1.33%

0.83%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

31-Mar-2017

31-Mar-2018

31-Mar-2019

For Mar 2018 & Mar 2019 - Gross & Net NPA corresponds to stage 3 assets, calculated as per Expected Credit Loss model in line with Ind AS.

Credit Ratings

Instrument

Deposits

Debentures

ICRA

CRISIL

AAA (Stable)

AAA (Stable)

AAA (Stable)

AAA (Stable)

Subordinated Debentures

AAA (Stable)

AAA (Stable)

Long Term Loans

AAA (Stable)

AAA (Stable)

Working Capital Facilities

AAA (Stable)

Commercial Paper

Short Term Loans

A1+

A1+

A1+

Branch Network

31-Mar-18

31-Mar-19

No. of Branches : 622

No. of Branches : 658

66

35

155

68

42

366

161

387

No. of Employees : 3880

No. of Employees : 4055

South

North West

East

Subsidiaries, Joint Ventures & Associates

Subsidiaries

Joint Ventures

Sundaram Finance Holdings Limited

Sundaram Business Services Limited

Sundaram Asset Management Company Limited

Sundaram Asset Management Singapore Pte. Limited

Sundaram Trustee Company Limited

Sundaram Alternate Assets Limited

LGF Services Limited

Royal Sundaram General Insurance Co. Limited

Sundaram BNP Paribas Home Finance Limited

Sundaram BNP Paribas Fund Services Limited

Associates Axles India Limited Turbo Energy Private Limited Transenergy Limited Sundaram Dynacast Private Limited Sundaram Hydraulics Limited Flometallic India Private Limited Dunes Oman LLC (FZC)

Consolidated Results

₹ in Crore

PAT

1161

683

730

1250

1050

850

650

450

250

2016-17

2017-18

2018-19

EPS (₹)

61.52

66.28

105.40

Net Worth

5649

6259

4809

9000

7000

5000

3000

1000

31-Mar-17

31-Mar-18

31-Mar-19

Book Value (₹)

432.86

512.99

568.29

Consolidated Results

Particulars

Sundaram Finance Ltd. Subsidiaries: Royal Sundaram General Insurance Co. Ltd Sundaram Finance Holdings Ltd. (Consolidated) Sundaram Asset Management Company Ltd. (Consolidated) Sundaram Trustee Company Ltd. LGF Services Ltd Sundaram Finance Employees Welfare Trust

₹ in Crore

Share of Net Worth

Share in Profit

31-Mar-2018 31-Mar-2019 31-Mar-2018 31-Mar-2019 1126.31

5043.81

4133.63

563.44

755.71 744.29 177.25 1.60 4.18 11.97

- 626.22 197.94 1.80 3.67 13.86

57.08 34.32 31.02 0.85 0.34 0.78

- 36.39 28.84 0.80 0.25 1.89

Non-Controlling Interests in Subsidiaries

2307.07

1738.91

113.41

97.65

Joint Control Entities Sundaram BNP Paribas Home Finance Ltd Royal Sundaram General Insurance Co. Ltd Sundaram BNP Paribas Fund Services Ltd

Adjustment arising out of Consolidation

Total

587.52 - 14.95

639.21 551.12 10.52

72.36 - (0.07)

72.88 56.63 (4.43)

8738.17 (781.85)

8827.06 (828.87)

873.53 (30.21)

1417.21 (158.71)

7956.32

7998.19

843.32

1258.50

Sundaram BNP Paribas Home Finance

₹ in Crore

Particulars Disbursements -Housing -Non-Housing AUM -Housing -Non-Housing

PAT EPS (₹) Net worth Book Value (₹)

Gross NPA # Net NPA # CAR #

Branches Employees # as per prudential norms

31-Mar-2018 2626 63% 37% 8358 69% 31%

31-Mar-2019 2449 69% 31% 9064 70% 30%

144 14.26 1149 113.46

3.27% 1.09% 24.3%

112 746

146 14.37 1252 123.66

2.95% 0.94% 23.5%

115 755

Royal Sundaram

₹ in Crore

Particulars

31-Mar-2018

31-Mar-2019

Gross Written Premium

PAT

Net worth

Combined Operating Ratio

Employees

2643

75

996

109%

1955

3196

113

1102

108%

2105

Sundaram Asset Management

₹ in Crore

Particulars

31-Mar-2018

31-Mar-2019

Average AUM

-Equity

-Debt

PAT

Net worth

Employees

35,982

19,512

16,470

31

177

328

34,111

21,058

13,053

29

198

354

Retail Investors

11,22,438

11,87,512

Share Price Movement

1900

1700

1500

1300

1100

e c i r P e r a h S g n i s o C L F S

l

In ₹

SFL Closing Share Price

S & P CNX Nifty

1524

1615 1608

1878

1686

1677 *

17000

1600

1514

1439

1559

15000

1279 1301

1330

1150

900

7850 7738

8288 8611

8186

700

500

10531

10114

107141093010863

11624

9174 9521 9789

y t f i

N X N C P & S

13000

11000

9000

7000

5000

6 1 - r p A

6 1 - r a M

6 1 - n u J

6 1 - p e S

6 1 - c e D

7 1 - r a M

7 1 - n u J

7 1 - p e S

7 1 - c e D

8 1 - r a M

8 1 - n u J

8 1 - p e S

8 1 - c e D

9 1 - r a M

* Share price movement after 1st Feb 2018 is post demerger

Board of Directors as on 30.05.2019

Name of the Director Sri S Viji Chairman

Expertise Has over 5 decades of experience in Banking, Finance, Insurance and Automotive Component Manufacturing Industry. He is the Chairman of Sundaram BNP Paribas Home Finance Limited and Managing Director of Brakes India Private Limited.

Qualification B.Com, ACA, MBA (University of Michigan, USA)

Sri S Ram

Has over 5 decades of work experience in Vehicle and Component Industry . He is the Chairman of Wheels India Ltd., Axles India Ltd and India Motor Parts & Accessories Ltd.

BE (Mechanical), MS (Production Engineering) (Birmingham University, UK)

Sri Raghuttama Rao Raghavendra

Has over 3 decades of work experience spanning Manufacturing, Financial Markets, Public Policy and Management Consulting.

B.Tech. (Mech. Engg.) – IIT Madras, CMA – ICWAI, P.G.D.M. - IIM Ahmedabad

Sri P N Venkatachalam Has nearly 4 decades of experience in Banking, Finance and Capital

MA (Economics), CAIIB

Markets. Formerly Managing Director of State Bank of India.

Sri S Mahalingam

4 decades of experience in Finance and Information Technology. Formerly Chief Financial Officer and Executive Director of Tata Consultancy Services.

B.Com (Honours), FCA

Sri S Prasad

Has more than a decade experience professional and 37 years as a practicing Chartered Accountant.

in industry as finance

FCA

Board of Directors as on 30.05.2019

Name of the Director Sri S Ravindran

Expertise 4 decades of experience in Finance and Engineering. He is a Whole Time Director of Turbo Energy Private Limited.

Qualification

B.Com, ACA

Ms Shobhana Ramachandhran 3 decades of experience in General Management and automobile

MA (English Literature)

Sri Rajiv C. Lochan

industry. She is the Managing Director of TVS Srichakra Limited.

Has two decades of experience in the field of management especially in the areas of finance, social sector, and public health. He is the Managing Director and CEO of Kasturi & Sons Limited.

B.Tech. (IIT), MS (MIT), MBA (Columbia Business School)

Sri T T Srinivasaraghavan Managing Director

Has nearly 4 decades of experience in Banking and Financial Services. Has held various operational roles in the Company and brings to bear in-depth knowledge of automotive financing. He is the Managing Director of the Company since 2003.

B.Com, MBA (Gannon University, Pennsylvania)

Sri Harsha Viji Deputy Managing Director

Has more than a decade experience in areas of specialisation particularly, strategy formulation, joint venture negotiations, new business development.

B.Com, ACA MBA (Ann Arbor, Michigan)

Sri A N Raju Director (Operations)

3 decades of experience in the Automobile, Engineering, Finance and General Management.

BSc (Engineering), MBA

Key Managerial Personnel

Name Sri M. Ramaswamy Chief Financial Officer

Sri P. Viswanathan Company Secretary & Compliance Officer

Qualification B.Sc. (Statistics), ACA

B.Com, FCS

over

Expertise He has over 30 years of experience in the Company. He is the Chief Financial Officer of the Company from Sep 2011. He is responsible for the Treasury Management, Financial Planning & Accounting, Taxation and Regulatory Compliance. He is a member of the Risk Management the Committee and Asset Liability Management of Company. He the has Company/Group. He became the Company Secretary and Compliance Officer of the Company from Sep 2011. He is responsible for statutory compliance in respect of all laws and regulations applicable to the Company, including Company Law, SEBI and RBI. He liaisons with the Board Members in connection with all Board related actions in the Company. He was Chairman of the Expert Committee on Company law of Madras Chamber of Commerce and Industry and is a Committee Member of Finance Companies Association of India.

experience

years

40

of

in

Disclaimer

This document is for information purposes only and is not and does not form part of an invitation/ offer / advertisement / advise to purchase or sell any securities of the Company.

The materials and information contained in the document are prepared by the Company and are correct and accurate, to the best of our knowledge. No information contained herein has been independently verified by anyone else or approved by any regulatory authorities. No warranty is given as to their accuracy and the company does not accept any responsibility and shall not be liable for any direct or indirect loss caused, arising from and/or use of this document.

Forward-looking statements, if any, are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant statement.

The contents of the website are subject to changes and reviews from time to time without notice. By accessing the site, you are deemed to accept the disclaimer clause.

Shri M Ramaswamy Chief Financial Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) Mail

: 044 – 28881341 : m.ramaswamy@sundaramfinance.in

Shri P Viswanathan Secretary & Compliance Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) Mail

: 044 – 28881207 : pv@sundaramfinance.in

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