Shriram Transport Finance Company Limited has informed the Exchange regarding Investor Presentation

SHRIRAM

Transport Finance Company Limited

A WINNING RELATIONSHIP

SEC/FILING/BSE-NSE/19-20/68A-B

July 24, 2019

BSE Limited P. J. Towers, Dalal Street, Fort, Mumbai — 400 001. Scrip Code: 511218

Dear Sirs,

Sub.: Investor Update / Presentation

National Stock Exchange of India Limited Listing Department Exchange Plaza, 5th Floor, Plot no. C/1, G- Block, Bandra-Kurla Complex, Mumbai — 400 051. NSE Symbol: SRTRANSFIN

Further to our letter dt. 19/07/2019 and pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations And Disclosure Requirements) Regulations, 2015, we enclose herewith our Investor Update / Presentation.

Thanking you,

Yours faithfully,

For SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

VIVEK ACHWAL COMPANY SECRETARY

Shriram Transport Finance Company Limited

Corporate Office: Wockhardl Towers, Level — 3, West Wing, C-2, G-Block, Bandra — Kurla Complex, Bandra (East), Mumbai — 400 051. Tel: +91 22 4095 9595 I Fax: +91 22 4095 9597. Registered Office: Mookambika Complex, 3d Floor, No.4, lady Desika Road, Mylapore, Chennai —600 004, Tamil Nadu, India. Tel: +91 44 2499 0356 I Fax: +91 44 2499 3272. Website: www.stfc.in I Corporate Identity Number (CIN) — L65191TN1979PLC007874.

Shriram Transport Finance Company Ltd Shriram Transport Finance Company Ltd Investor Update – Q1 FY2020 Investor Update – Q1 FY2020

July 24, 2019 July 24, 2019

Just another milestone in our growth journey Just another milestone in our growth journey

Performance Highlights – Q1 FY20 vs Q1 FY19

)SHRIRAM

Tranoport Finance Company Looked

A WINNING RELATIONSHIP

Total Income

8.85%

Q1 FY20 Rs 40,616.5 mn

Q1 FY19 Rs 37,313.1 mn

Net Interest Income* 7.62% *including Direct assignment Income Rs. 110.26 Mn

(Q1 FY19 Rs. -6.41 Mn)

PAT

10.71%

Q1 FY20 Rs 19,617.4 mn

Q1 FY19 Rs 18,228.9 mn

Q1 FY20 Rs 6,342.5 mn

AIM

Q1 FY19 Rs 5,729.0 mn

 Cost to income ratio at 21.78% in Q1 FY20 as compared to 23.04% in Q1 FY19

EPS

10.73%

Q1 FY20 Rs 27.96

Q1 FY19 Rs 25.25

2

Performance Highlights – Q1 FY20 vs Q1 FY19

)SHRIRAM

Tranoport Finance Company Looked

A WINNING RELATIONSHIP

AUM

5.77%

Q1 FY20 Rs 1,063,434.8 mn

Q1 FY19 Rs 1,005,405.7 mn

Gross Stage 3 assets

2.53%

Q1 FY20 Rs 89,257.4 mn

Q1 FY19 Rs 91,573.1 mn

Net Stage 3 assets

0.76%

Q1 FY20 Rs 60,851.7 mn

Q1 FY19 Rs 60,394.9 mn

 CRAR at 20.07% as of Q1 FY20 compared to 16.92% as of Q1 FY19.

Book Value

15.05%

Q1 FY20 Rs 717.38

Q1 FY19 Rs 623.55

3

AUM Break-up

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

F

4

Particulars (Rs. mn)Q1 FY19Q4 FY19Q1 FY20YoY (%)QoQ (%)FY19Loan Portfolio- On Books Balance sheet assets824,615.1850,847.3846,514.52.66%-0.51%850,847.3Securitised assets180,410.6172,227.7197,499.79.47%14.67%172,227.7Total On books1,005,025.71,023,075.01,044,014.23.88%2.05%1,023,075.0- Off Books*380.021,747.919,420.65010.68%-10.70%21,747.9Total AUM1,005,405.71,044,822.91,063,434.85.77%1.78%1,044,822.9- New121,371.4115,940.8114,504.5-5.66%-1.24%115,940.8- Used834,641.7870,499.7890,205.46.66%2.26%870,499.7- Business Loans29,656.329,710.329,120.9-1.81%-1.98%29,710.3- Working capital loans18,949.028,073.128,983.452.95%3.24%28,073.1- Others787.3599.0620.6-21.17%3.61%599.0Total AUM1,005,405.71,044,822.91,063,434.85.77%1.78%1,044,822.9*Off Books pertains to Direct assignment portfolioSegment-wise AUM Break up

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

•

•

5

HCVs, 46.00%M&LCVs, 22.52%Passenger Vehicles, 22.58%Tractors, 3.38%Business Loans, 2.74%Others, 2.78%Q1 FY20HCVs, 47.02%M&LCVs, 20.73%Passenger Vehicles, 23.29%Tractors, 4.05%Business Loans, 2.95%Others, 1.96%Q1 FY19Branch & AUM distribution – Q1 FY19 vs Q1 FY20

Branch (Nos)

AUM (Rs in bn)

tiSHRIRAM

Tranaport Finance Company Lenitee

A WINNING RELATIONSHIP

Total Branch 1,230

Total Branch 1,585

Total AUM Rs 1,005.4 bn

•

Total AUM Rs 1,063.4 bn

6

Urban, 665.6Rural, 339.8Q1 FY19Urban, 659.9Rural, 403.5Q1 FY20Urban, 634 Rural, 596 Q1 FY19Urban, 839Rural, 746Q1 FY20Provision Analysis

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

7

As per IND ASParticulars (Rs. mn)Q1 FY19Q4 FY19Q1 FY20YoY (%)QoQ (%)FY19Gross Stage 391,573.186,222.789,257.4-2.53%3.52%86,222.7ECL provision-Stage 331,178.229,670.028,405.7-8.89%-4.26%29,670.0Net Stage 360,394.956,552.760,851.70.76%7.60%56,552.7Gross Stage 3 (%)9.06%8.37%8.52%-6.04%1.71%8.37%Net Stage 3 (%)6.17%5.65%5.97%-3.25%5.53%5.65%Coverage Ratio (%) Stage 334.05%34.41%31.82%-6.53%-7.52%34.41%Gross Stage 1 & 2918,789.2943,584.7958,894.94.37%1.62%943,584.7ECL provision-Stage 1 & 223,413.326,037.027,623.717.98%6.09%26,037.0Net Stage 1 & 2895,376.0917,547.7931,271.24.01%1.50%917,547.7ECL provision (%) Stage 1 & 22.55%2.76%2.88%13.05%4.40%2.76%Well-entrenched Pan India Network

A WINNING RELATIONSHIP

Regional Split of Branches

ABBREVIATIONS

11,585 2.05m n 279174 169471 500

•

Branch Network

Branch Offices

Customers

Employees

Field Officers

Private Financiers

856

Rural Centres

8

ZoneZone NameZOADHHYDERABAD ZONEZODHPDELHI ZONEZOECERANCHI ZONEZOCHNCHANDIGARH ZONEZOGRAAHMEDABAD ZONEZONCELUCKNOW ZONEZOSO1CHENNAI ZONEZOSOUBANGALORE ZONEZOWONKOLKATA ZONEZOINDINDORE ZONEZOPUNPUNE ZONEZORPRRAIPUR ZONEZOADH, 167ZODHP, 46ZOECE, 87ZOCHN, 48ZOGRA, 154ZONCE, 108ZOSO1, 339ZOSOU, 238ZOWON, 70ZOIND, 105ZOPUN, 148ZORPR, 75P&L Statement

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

*Before Provisions & Contingencies

#Note – Profit after tax for Q4 FY19 is higher by Rs. 1,098.2 mn on account of tax adjustment for earlier years.

9

Particulars (Rs. mn)Q1 FY19Q4 FY19Q1 FY20YoY (%)QoQ (%)FY19Interest income37,116.538,449.640,014.67.81%4.07%154,441.4Interest expended18,887.619,391.020,397.27.99%5.19%76,366.0Net interest income18,228.919,058.619,617.47.62%2.93%78,075.4Other Operating Income41.873.4131.5214.59%79.16%241.8Operating income18,270.719,132.019,748.98.09%3.22%78,317.2Operating expenditure4,348.44,288.04,464.52.67%4.12%17,480.7Core operating profit *13,922.314,844.015,284.49.78%2.97%60,836.5Other income134.7276.4143.26.31%-48.19%768.8Operating profit14,057.015,120.415,427.69.75%2.03%61,605.3Loan Losses & Provision5,226.65,398.05,611.87.37%3.96%23,822.6Profit before tax 8,830.49,722.49,815.811.16%0.96%37,782.7Tax Expense3,101.42,262.03,473.311.99%53.55%12,142.8Profit after tax5,729.07,460.4#6,342.510.71%-14.98%25,639.9Other comprehensive Income (Net)-11.81.9-30.1155.08%-1684.21%-23.2Total Comprehensive Income 5,717.27,462.36,312.410.41%-15.41%25,616.7EPS (Rs)25.2532.8827.9610.73%-14.96%113.01Tier I CRAR %14.34%15.62%15.87%10.64%1.58%15.62%Tier II CRAR %2.58%4.65%4.20%62.79%-9.66%4.65%Total CRAR %16.92%20.27%20.07%18.59%-0.99%20.27%Book Value (Rs)623.55697.99717.3815.05%2.78%697.99Balance Sheet

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

10

Particulars (Rs. mn)Jun-18Mar-19Jun-19YoY (%)QoQ (%)I. ASSETSFinancial AssetsCash and cash equivalents3,519.4 10,291.4 31,534.4 796.02%206.42%Bank Balance other than above25,783.1 29,523.3 34,260.2 32.88%16.04%Derivative financial instruments3,500.0 217.2 127.3 -96.36%-41.39%Receivables(I) Trade Receivables63.7 84.8 38.0 -40.35%-55.19%(II) Other Receivables69.7 199.4 220.5 216.36%10.58%Loans950,518.9 967,514.9 988,118.4 3.96%2.13%Investments24,313.8 39,990.7 26,300.7 8.17%-34.23%Other Financial assets419.7 417.6 433.9 3.38%3.90%Non Financial assetsCurrent tax assets (net)840.6 1,065.8 1,065.8 26.79%0.00%Deferred tax assets (net)356.2 757.0 703.9 97.61%-7.01%Investment Property20.8 20.6 20.6 -0.96%0.00%Property, plant and equipment1,166.3 1,434.6 1,378.5 18.19%-3.91%Right of use assets- - 3,457.6 0.00%0.00%Other Intangible assets24.2 19.7 17.2 -28.93%-12.69%Other non financial assets1,453.0 1,387.8 1,435.0 -1.24%3.40%Total1,012,049.41,052,924.81,089,112.07.61%3.44%Balance Sheet (Continued)

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

11

Particulars (Rs. mn)Jun-18Mar-19Jun-19YoY (%)QoQ (%)II. Liabilities and EquityFinancial LiabilitiesDerivative financial instruments3,189.9 834.2 1,351.0 -57.65%61.95%Trade Payables2,159.2 2,036.3 1,459.2 -32.42%-28.34%Debt Securities322,193.8 341,817.6 350,153.1 8.68%2.44%Borrowings (other than debt security)392,767.7 371,893.0 383,609.7 -2.33%3.15%Deposits87,893.7 103,414.6 110,576.4 25.81%6.93%Subordinated Liabilities49,188.6 62,018.8 61,705.7 25.45%-0.50%Other Financial liabilities6,039.6 7,313.0 6,332.1 4.84%-13.41%Lease liabilities- - 3,577.1 - - Non-financial LiabilitiesCurrent tax liabilities (net)3,026.5 1,029.7 1,784.5 -41.04%73.30%Provisions1,313.3 1,332.6 3,344.3 154.65%150.96%Other non-financial liabilities2,805.1 2,872.2 2,458.3 -12.36%-14.41%EquityEquity share capital2,269.0 2,269.0 2,268.8 -0.01%-0.01%Other equity139,203.0 156,093.8 160,491.8 15.29%2.82%Total1,012,049.41,052,924.81,089,112.07.61%3.44%Key Metrics – Q1 FY20

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

#Note – Profit after tax for Q4 FY19 is higher by Rs. 1,098.2 mn on account of tax adjustment for earlier years.

12

P&L Metrics (Rs. mn)Q1 FY19Q4 FY19Q1 FY20YoY (%)QoQ (%)FY19Interest Income37,116.538,449.640,014.67.81%4.07%154,441.4Less: Interest Expenses18,887.619,391.020,397.27.99%5.19%76,366.0Net Interest Income18,228.919,058.619,617.47.62%2.93%78,075.4Other Income176.5349.8274.755.64%-21.47%1,010.6Profit After Tax5,729.07,460.4#6,342.510.71%-14.98%25,639.9EPS (Rs.)25.2532.8827.9610.73%-14.96%113.01Cost to income Ratio (%)23.04%21.39%21.78%-5.47%1.82%21.49%NIM (on AUM)7.44%7.22%7.16%-3.76%-0.83%7.41%Balance Sheet Metrics (Rs. mn)Q1 FY19Q4 FY19Q1 FY20YoY (%)QoQ (%)FY19Networth141,195.9158,086.6162,484.515.08%2.78%158,086.6Book Value (Rs.)623.55697.99717.3815.05%2.78%697.99Interest Coverage (x) 1.97 2.00 1.97 0.00%-1.50% 2.03 ROA (%)2.19%2.65%2.26%3.20%-14.72%2.33%ROE (%)16.53%19.30%15.80%-4.42%-18.13%17.52%CRAR (%)16.92%20.27%20.07%18.62%-0.99%20.27%Borrowing Profile as on June 30, 2019 vs June 30, 2018

Rs 852.04 bn

Rs 906.04 bn

•

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

•

13

Bonds, 31.72%Commercial Paper , 6.09%Other Borrowing, 2.97%Public Deposit, 10.22%Securitisation, 21.92%Subordinated debts, 5.77%Term Loan, 20.60%Borrowings in Foreign currency, 0.71%Q1 FY19Bonds, 29.93%Commercial Paper , 1.77%Other Borrowing, 1.61%Public Deposit, 12.18%Securitisation, 22.04%Subordinated debts, 6.81%Term Loan, 15.67%Borrowings in Foreign currency, 9.99%Q1 FY20 Shareholding Pattern as on June 30, 2019 vs June 30, 2018

A WINNING RELATIONSHIP

No. of shares outstanding: 226.88 mn

n

•

•

•

•

14

Promoter , 26.08%FII & FPI , 48.93%NRI/OCBs , 0.15%MF/Bank , 5.68%Other Corporate Body , 12.44%Public , 6.72%Q1 FY19Promoter , 26.08%FII & FPI , 57.69%NRI/OCBs , 0.14%MF/Bank , 8.10%Other Corporate Body , 1.18%Public , 6.81%Q1 FY20Has Attracted Strong Interest from Quality Investors

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

 Consistent

track record and high growth potential has attracted reputed institutional equity and investors to infuse growth capital

private

 Last fund raising: Allotted 11.658 mn equity shares at Rs. 500.80 per share to Qualified Institutional Buyers (QIB) for an aggregate sum of Rs. 5.84 bn resulting in a dilution of around 5.20% to 45 marquee global as well as domestic funds and insurers, which included 22 existing investors and the rest, new investors on January 28, 2010

15

Key ShareholdersCurrent Shareholding (Mn Shares) % Shriram Capital Limited59.1726.08HDFC Trustee Company Limited-HDFC Several Fund7.423.27Sanlam Life Insurance Limited6.762.98SBI Mutual Fund4.471.97New World Fund Inc4.391.93Government Pension Fund Global4.381.93Investec Global Strategy Fund - Asian Equity Fund3.741.65Abu Dhabi Investment Authority -(Under Various sub accounts)3.661.61Fidelity Investment Trust Series Emerging Markets3.271.44Platinum Asia Fund3.211.41Public & Others126.4155.73Total226.88100.00Contact Us

SHRIRAM

li

Tronoport ;nonce Company Urnitee

A WINNING RELATIONSHIP

For any Investor Relations queries please contact

Sanjay K. Mundra Shriram Transport Finance Co. Ltd Email: smundra@stfc.in Tel. No. +91-22-4095 9507

16

About Us

tiSHRIRAM

Transport Finance Company Crated

A WINNING RELATIONSHIP

About Shriram Transport Finance Co. Ltd.

Shriram Transport Finance Co Ltd. is the largest asset financing NBFC in India with Assets under management Rs. 106,343.48 crores. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-10 year old trucks. It has a pan-India presence with a network of 1,585 branches, and employs 27,174 employees including 16,471 field officers. The company has built a strong customer base of approx. 2.05 mn. Over the past 40 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned trucks and collection. It has a vertically integrated business model and offers a number of products which include: Pre-owned CV financing, New CV financing and other loans like accidental repair loans, tyre loans and working capital finance, etc. For more information please visit www.stfc.in

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.

17

Thank You Thank You