FUSION

Date: 11.02.2023 Letter No. FMFL/SEC/2022-23/SE-121 The Manager The Manager Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Dalal Street, Mumbai - 400 001 Scrip Code: FUSION Scrip Code: 543652 Sub: Submission of Earnings Presentation Dear Sir/Ma’am, Pursuant to Regulation 30, Regulation 51 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Earnings Presentation with respect to Financial Results for Quarter and Nine Months Period ended on December 31, 2022. The same is also available on the website of company i.e. www.fusionmicrofinance.com. Request you to take the same on records. Thanking you For Fusion Micro Finance Limited (Formerly Fusion Micro Finance Private Limited) Deepak Madaan Company Secretary & Compliance Officer Membership No. A24811 Place: Gurugram Creating Opportunities… Creating Investor Presentation Opportunities… Q3 FY23 Fusion Micro Finance Limited Disclaimer Creating Opportunities… ByattendingthemeetingwherethisPresentation(“Presentation”)ismade,orbyreadingthePresentationmaterials,youagreetobeboundbythelimitationscontainedhereinandtomaintainabsoluteconfidentialityregardingtheinformationdisclosedinthisPresentation.Anyfailure tocomplywiththesetermsandconditionsmayconstituteaviolationofapplicablesecuritieslaws.ThisPresentationisforinformationpurposesonly,andisnotintendedtobeanadvertisement,anddoesnotconstituteorformpartof,andshouldnotbeconstruedasanyofferor invitationforsaleorsubscriptionof,orsolicitationorinvitationof,anyoffertobuyorsubscribeforanysecurities,norshallitoranypartofitformthebasisof,orbereliedoninconnectionwithoractasaninducementtoenterintoanycontract,commitmentorinvestmentdecisionin relationtheretoinIndia,theUnitedStatesoranyotherjurisdiction.ThisPresentationisnotintendedtobeaprospectus,anofferletter,offeringcircular,invitationoranadvertisement(asdefinedundertheIndianCompaniesAct,2013,asamended)oranofferdocumentunderthe SecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2018,asamended(“SEBIICDRRegulations”). TheinformationsetouthereinisprovidedonlyasatthedateofthisPresentation(unlessstatedotherwise),itsaccuracyisnotguaranteed,anditmaybesubjecttoupdation,completion,revision,verificationandamendmentwithoutnoticeandsuchinformationmaychangematerially. ThisPresentationisbasedontheeconomic,regulatory,marketandotherconditionsasineffectonthedatehereof.FusionMicroFinanceLimited(the“Company”)oranyoftheirrespectiveaffiliates,shareholders,directors,employees,agents,officers,advisorsorrepresentatives (together,“Representatives”)makeanyexpressorimpliedrepresentationsorwarrantiesasto,andnorelianceshouldbeplacedon,thefairness,accuracy,completeness,authenticityorcorrectnessoftheinformation,oropinionscontainedherein,andnoneofthemshallhaveany responsibilityorliabilitywhatsoever(fornegligenceorotherwise,includinganythirdpartyliability)foranylossordamage(includingconsequentiallossordamage)howsoeverarisingfromanyuse,relianceordistributionofthisPresentationoritscontentsorotherwisearisingin connectionwiththisPresentation.TheinformationcontainedinthisPresentationhasnotbeen,andwillnotbe,updatedtoreflectmaterialdevelopmentswhichmayoccurafterthedateoftheinformationcontainedinthePresentation.Itshouldbeunderstoodthatsubsequent developmentsmayaffecttheinformationcontainedinthisPresentation,whichtheCompanyortheirrespectiveadvisorsorrepresentativesareunderanobligationtoupdate,reviseoraffirm.Thisdocumentisasummaryonlyanditisnottheintentiontoprovide,andyoumaynotrely onthisPresentationasproviding,acompleteorcomprehensiveanalysisofthefinancialortradingpositionorprospectsoftheCompany.ThisPresentationhasnotbeenandwillnotbereviewedorapprovedbyanystatutoryorregulatoryauthorityinIndiaoranystockexchangeinIndia oranyotherjurisdiction.YoushouldconductsuchindependentinvestigationsandanalysisoftheCompanyasyoudeemnecessaryorappropriateinordertomakeanindependentdeterminationofthesuitability,meritsandconsequencesofinvestmentsintheCompany.Any investmentdecisionwithrespecttoanysecuritiesoftheCompanymustbemadesolelyonthebasisofaprospectus(asdefinedundertheIndianCompaniesAct,2013,asamended)tobefiledwithRegistrarofCompanies,NationalCapitalTerritoryofDelhiandHaryana.Allfinancial numbersandoperationalmetrics,unlessotherwisestated,havebeenroundedofftothenearestdecimal. ThisPresentationisnotanofferofsecuritiesforsaleintheUnitedStatesorelsewhere.ThispresentationhasbeenpreparedforpublicationinIndiaandisnotforpublicationordistribution,directlyorindirectly,inorintotheUnitedStates.TheEquityShareshavenotbeenandwillnot beregisteredundertheU.S.SecuritiesActof1933,asamended(the“U.S.SecuritiesAct”)oranystatesecuritieslawsintheUnitedStates,andmaynotbeofferedorsoldwithintheUnitedStatesorto,orfortheaccountorbenefitof,U.S.personsasdefinedinRegulationSunderthe U.S.SecuritiesAct(“U.S.Persons”)exceptpursuanttoanexemptionfrom,orinatransactionnotsubjectto,theregistrationrequirementsoftheU.S.SecuritiesActandapplicableU.S.statesecuritieslaws.TheCompanyhasnotregisteredanddoesnotintendtoregisterundertheU.S. InvestmentCompanyActof1940,asamended(the“U.S.InvestmentCompanyAct”)inrelianceuponsection3(c)(7)thereof.Accordingly,theEquitySharesareonlybeingofferedandsold(i)topersonsintheUnitedStatesorto,orfortheaccountorbenefitof,U.S.Persons,ineachcase thatareboth“qualifiedinstitutionalbuyers”(asdefinedinRule144AundertheU.S.SecuritiesAct)and“qualifiedpurchasers”(asdefinedundertheU.S.InvestmentCompanyAct)intransactionsexemptfromornotsubjecttotheregistrationrequirementsoftheU.S.SecuritiesActand inrelianceuponsection3(c)(7)oftheU.S.InvestmentCompanyAct;or(ii)outsidetheUnitedStatestoinvestorsthatarenotU.S.PersonsnorpersonsacquiringfortheaccountorbenefitofU.S.PersonsinoffshoretransactionsinrelianceonRegulationSundertheU.S.SecuritiesAct andtheapplicablelawsofthejurisdictionwherethoseoffersandsalesoccur.TheEquitySharesmaynotbere-offered,re-sold,pledgedorotherwisetransferredexceptinanoffshoretransactioninaccordancewithRegulationSundertheU.S.SecuritiesActtoapersonoutsidethe UnitedStatesandnotknownbythetransferortobeaU.S.Personbypre-arrangementorotherwise(including,fortheavoidanceofdoubt,abonafidesaleonBSEorNSE). ItmaybeunlawfultodistributethisPresentationincertainjurisdictions.ThisPresentationisnotforpublicationordistribution,directlyorindirectly,inorintoAustralia,CanadaorJapan.TheinformationcontainedinthisPresentationdoesnotconstituteanofferofsecuritiesforsalein Australia,CanadaorJapan.ThisPresentationcontainscertain“forwardlookingstatements”.Allsuchforwardlookingstatementsaresubjecttocertainrisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthosecontemplatedbytherelevantforward-looking statement.Suchforwardlookingstatementsaremadebasedonmanagement’scurrentexpectationsorbeliefsaswellasassumptionsmadeby,andinformationcurrentlyavailableto,management.Bytheirnature,forwardlookingstatementsinvolveriskanduncertaintybecausethey relatetoeventsanddependoncircumstancesthatwilloccurinthefuture.AnyinvestmentinsecuritiesissuedbytheCompanywillalsoinvolvecertainrisks.TheremaybeadditionalmaterialrisksthatarecurrentlynotconsideredtobematerialorofwhichtheCompanyandanyoftheir Representativesareunaware.Againstthebackgroundoftheseuncertainties,readersshouldnotrelyontheseforward-lookingstatements.NeithertheCompanynoranyoftheirRepresentativesassumeanyresponsibilitytoupdateforward-lookingstatementsortoadaptthemto futureeventsordevelopments. TheCompanyandtheirrespectiveaffiliates,advisersandrepresentativesmakenorepresentationastotheaccuracyorcompletenessofthatdata,andthisdatainvolvesrisksanduncertaintiesandissubjecttochangebasedonvariousfactors.Norepresentationorclaimismadethat theresultscontainedinthisPresentationwillactuallybeachieved.AllindustrydatacontainedinthisPresentationisbasedondataobtainedfromthesourcescitedandinvolvesignificantelementsofsubjectivejudgmentandanalysis,whichmayormaynotbecorrect. TheinformationcontainedinthisPresentationisnottobetakenasanyrecommendationmadebytheCompanyoranyotherpersontoenterintoanyagreementwithregardtoanyinvestment.Youwillbesolelyresponsibleforyourownassessmentofthemarketandthemarket positionoftheCompanyandyouwillconductyourownanalysisandbesolelyresponsibleforformingyourownviewofthepotentialfutureperformanceofthebusinessoftheCompany.Itshouldbeunderstoodthatsubsequentdevelopmentsmayaffectinformationcontainedinthis Presentation,whichneithertheCompany,northeirrespectiveaffiliates,advisorsorrepresentativesareunderanobligationtoconfirm. Unlessotherwisestated,thisPresentationisbasedoninformationregardingtheCompanyandtheeconomic,regulatory,marketandotherconditionsasineffectonthedatehereof.SubsequentdevelopmentsmayaffecttheinformationcontainedinthisPresentation,whichneither theCompanyitsaffiliates,advisors,noranyoftheirRepresentativesareunderanobligationtoupdate,reviseoraffirm.ThisPresentationanditscontentsareconfidentialandmaynotbetakenaway,copied,published,disseminated,orreproducedorredistributedorpassedondirectly orindirectlytoanyotherperson,whetherwithinoroutsideyourorganizationorfirm,orpublishedinwholeorinpart,foranypurposebyrecipientsdirectlyorindirectlytoanyotherperson. ByattendingthisPresentationand/oracceptingacopyofthisdocument,youagreetobeboundbytheforegoinglimitationsandconditionsand,inparticular,willbetakentohaverepresented,warrantedandundertakenthat:(i)youhavereadandagreetocomplywiththecontentsof thisnoticeincluding,withoutlimitation,theobligationtokeepthisdocumentanditscontentsconfidential;(ii)youwillnotatanytimehaveanydiscussion,correspondenceorcontactconcerningtheinformationinthisdocumentwithanyofthedirectorsoremployeesoftheCompany oritssubsidiariesnorwithanyoftheircustomersorsuppliers,oranygovernmentalorregulatorybodywithoutthepriorwrittenconsentoftheCompany;and(iii)youagreenottoremoveorcopythisPresentation,oranymaterialsprovidedinconnectionherewith. 2 February 11, 2023| © Fusion Micro Finance Limited Presentation Path Creating Opportunities… Vision, Mission Business Executive Summary Overview & Values Our Presence Key Strengths Performance 1 22 33 44 5 6 3 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Executive Summary 1 4 February 11, 2023| © Fusion Micro Finance Limited Executive Summary Creating Opportunities… Company continues to demonstrate robust growth in portfolio , stable asset quality and has achieved highest PAT since inception. Consistent focus on adding new clients – added ~0.7 Mn clients in 9 months while continuing to retain existing clients. Uptick in NIM by 10 bps QoQ AUM PAT NIM ROE ROA ₹ 86,536 Mn ₹ 2,726 Mn 9.92% 20.52% 4.46% YoY growth 45% YoY growth 3085% 5 February 11, 2023| © Fusion Micro Finance Limited Performance Highlights – 9M FY’23 Creating Opportunities… ECL Cost to Income Net worth CRAR NNPA ₹ 2,894 Mn 39.41% ₹ 22,052 Mn 28.15% 0.98% Including Management overlay of ₹ 252.5Mn Total Income NII OPEX Cost of Borrowing PPOP ₹ 4,912 Mn ₹ 12,793 Mn ₹ 6,735 Mn 5.52% 10.26% YoY growth 102% 6 February 11, 2023| © Fusion Micro Finance Limited Collection Efficiency Creating Opportunities… Pre-Mar-21 Portfolio ₹ 2,529 mn 3% of MFI-AUM Post Mar-21 Portfolio ₹ 81,806 mn 97% of MFI-AUM Total Collection efficiency including Pre-payment collection 109.5% 107.1% 107.5% 106.5% 104.5% 103.7% 94.4% 96.5% 96.8% 95.4% 94.1% 93.4% 92.8% Collection efficiency excluding Pre-payment collection 88.4% Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 FY 22 Q1 FY 23 Q2 FY 23 Q3 FY 23 Disbursal before Mar-21 Disbursal between Apr-21 & Dec-22 7 February 11, 2023| © Fusion Micro Finance Limited Impact of Credit Cost Creating Opportunities… ₹ in Million Understanding the Credit Cost Impact Q3 FY 23 Q2 FY23 9M FY 23 FY 22 -Opening ECL-[A] 2,850.8 2,442.7 3,603.5 2,853.0 -Provisions as per ECL [B] 494.0 610.9 1,305.1 3,684.9 -Reversals (on account of write-off) [C] 450.4 202.8 2,014.2 2,934.4 -Closing ECL [D = A+B-C] 2,894.4 2,850.8 2,894.4 3,603.5 Impairment [F] 494.0 610.9 1,305.1 3,684.9 -Credit Cost (Provisions) / % of Avg. On-Book Loan Portfolio (non-annualized) 0.65% 0.86% 1.85% 6.75% Bad-Debt Recovery [G] 40.8 48.2 131.2 69.7 Net P&L Impact [F –G] 453.2 562.7 1,173.9 3,615.1 Net P&L Impact –% of Avg. On-Book Loan Portfolio (non-annualized) 0.60% 0.79% 1.66% 6.62% Asset Gross Loans ECL Gross Loans ₹ 1,336.7 Mn portfolio has been restructured under Resolution Slab Classification ECL (%) (₹ Mn) (₹ Mn) (%) Framework 2.0 which was ~2.5% of AUM as on September 30, 2021. The (dpd) current outstanding ₹ 257.12 Mn, which is only ~ 0.3 % of AUM. -Stage I 0 -30 74,867.15 466.12 95.39% 0.62% -Stage II 31 -90 722.76 285.20 0.92% 39.46% Management overlay of ₹ 77.76 Mn is included in ₹ 494 Mn of provision -Stage III 90 + 2,894.37 2,143.04 3.69% 74.04% as per ECL in Q3 FY’23. Total Management overlay of ₹ 252.5 Mn as on Total 78,484.28 2,894.37 100% 3.69% December 31, 2022. -GNPA (Stage III) 3.69% -NNPA (Net Stage III) 0.98% 8 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Overview 22 9 February 11, 2023| © Fusion Micro Finance Limited 12+ years of robust performance Creating Opportunities… Diversified Client Growth AUM Growth Organically diversified 31% for last 5 years 51% for last 5 years since beginning Technology Cost of Funds Ranking On Cloud since 2013 Reduced by 335 bps in 2nd largest NBFC – MFI last 5 years Marquee Investor Rating New Product Warburg Pincus - 2018 3 upgrades in last 5 years, Started MSME in 2019 currently “A” stable (CRISIL, CARE, ICRA) IPO 2022 10 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Vision, Mission & Values 11 February 11, 2023| © Fusion Micro Finance Limited Vision, Mission and Values Creating Opportunities… Vision: “Fusion Micro Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to Mission: transform the quality of “A self sustainable their lives.” financial institution which leverages the distribution network to channel other products and services.” 12 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Our Presence 44 13 February 11, 2023| © Fusion Micro Finance Limited Our Presence Creating Opportunities… J & K (2) ~3.4 20 Himachal Pradesh (8) Punjab (46) Mn Uttarakhand (20) Active Clients States Haryana (47) Delhi (9) Uttar Pradesh (212) Assam (20) (including 2 UTs) Rajasthan (97) Bihar(145) 1057 Jharkhand (47) Madhya Pradesh (106) Chhattisgarh (32) Gujarat (37) West Bengal (16) Odisha (105) Branches Maharashtra (7) 396 >121 k Karnataka (9) Puducherry (3) Districts Villages Tamil Nadu (89) 14 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Key Strengths 5 15 February 11, 2023| © Fusion Micro Finance Limited Key Strengths Creating Opportunities… Diversification Liability Management Consistency Digital Orientation People Operational Prudence Strong Governance 16 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Diversification Creating Opportunities… YoY Network Distribution Top 5 states concentration Rural vs Urban Presence 90% 91% 92% 93% 93% 93% 86% 17 18 19 20 21 22 H123 Rural Urban QoQ Network Distribution Top 5 states concentration Rural vs Urban Presence 17 February 11, 2023| © Fusion Micro Finance Limited %41 % 01 % 9 % 8 % 7 % 7 % 7 20 1200 18 18 18 18 20 74.0% 75.0% 1057 72.3% 18 1000 14 934 68.0% 67.7% 16 65.9% 65.3% 12 725 14 800 595 12 504 600 10 375 8 400 264 6 4 200 2 0 0 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 9MFY 23 Total Branches States 67.7% 1200 934 966 1031 1057 20.5 66.8% 93% 93% 93% 93% 93% 1000 859 20 20 66.1% 19.5 800 19 65.3% 600 19 64.9% 18 19 18.5 400 18 18 200 17.5 0 17 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3’22 Q2’23 Q3’23 Total Branches States Rural Urban %7 % 7 % 7 % 7 % 7 Q4’22 Q1’23 Key Strengths : Consistency Creating Opportunities… YoY ₹ in Million AUM Disbursement CAGR 50% CAGR 47% 61,798 62,232 86,536 67,860 35,740 37,103 46,378 27,822 36,065 26,414 16,705 15,556 8,308 8,272 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 QoQ Disbursement AUM Growth 22% Growth 45% 21,883 86,536 20,166 19,830 20,519 80,472 17,913 73,890 67,860 59,882 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Growth 13% 9% 9% 8% Growth 13% -2% 3% 7% 18 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Consistency (Contd…) Creating Opportunities… YoY AUM/ RO (₹ in Mn) AUM/Branch (₹ in Mn) Borrower/ Branch 12.9 3,079 3,167 3,020 3,381 840 11.0 11.4 739 2,779 2,987 10.2 2,728 649 9.3 610 7.6 524 6.1 415 313 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 QoQ AUM/ RO (₹ in Mn) AUM/Branch (₹ in Mn) Borrower/ Branch 12.9 3,381 840 12.5 779 794 3,223 12.0 739 3,116 709 3,020 11.4 11.4 2,983 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 19 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Operational Prudence Creating Opportunities… YoY Avg. Ticket Size (₹ in K) Borrowers (in Lacs) Avg. OS / Borrower (₹ in K) 35.7 36.8 CAGR 31% 32.1 34.0 24.5 24.8 29.8 27.2 21.7 26.5 19.3 23.6 21.3 21.2 17.0 18.7 15.2 15.5 11.3 10.2 7.3 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 '17 '18 '19 '20 '21 '22 9MFY 23 QoQ Avg. Ticket Size (₹ in K) Borrowers (in Lacs) Avg. OS / Borrower (₹ in K) 37.9 34.0 25.0 31.9 24.8 35.9 36.2 36.4 36.2 24.9 27.2 29.0 24.5 24.7 23.8 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Growth 10% 6% 10% 7% 20 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : People Creating Opportunities… Stable and Experienced core management team with avg. tenure of ~7 years in Fusion Team Size Strong second line with diversified experience and progressive orientation >10 k Focus on home grown talent Across 1057 locations Awarded ‘Great Place to Work’ in our debut year of participating and the next two subsequent years, which validates our people centric approach 21 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Liability Management Creating Opportunities… Marginal Cost of Borrowings & Avg Cost of Borrowing % Marginal Cost of Borrowings & Avg Cost of Borrowing % 14.1% 13.5% 11.2% 12.7% 12.3% 10.8% 11.2% 10.7% 10.4% 10.3% 10.3% 10.3% 10.2% 10.4% 10.1% 10.1% 9.9% 9.7% YoY QoQ FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 Q3FY'22 Q4FY'22 Q1FY'23 Q2FY'23 Q3FY'23 Institutions / Banks 9MFY23 Q2FY23 Q1FY23 FY'22 FY'21 FY'20 FY'19 FY'18 FY'17 Public Sector Bank 26.4% 26.8% 20.2% 21.4% 13.3% 5.4% 1.1% 6.6% 13.1% Development financial Institutions 6.9% 7.6% 9.9% 11.7% 13.3% 12.7% 5.9% 7.2% 13.4% Private Sector Bank 33.4% 34.8% 35.6% 36.5% 36.4% 39.9% 50.3% 23.6% 7.9% Foreign-Bank 15.4% 13.3% 14.7% 13.7% 16.4% 20.3% 10.4% 6.6% 3.0% Non-Banking Financial Institutions 11.0% 10.6% 10.4% 8.8% 7.1% 10.1% 18.1% 32.6% 30.3% Non-Convertible Debentures 6.9% 7.0% 9.2% 8.0% 13.5% 11.7% 14.3% 23.5% 32.2% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 22 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Liability Management (Contd…) Creating Opportunities… Positive ALM (in Months) 25.8 Tenure Ratings 23 23.7 22.2 20.4 21.5 18.8 17.5 17.7 A 16.5 FY 2023 FY 2022 A- FY 2017 BBB+ '19 '20 '21 '22 9MFY 23 Average maturity of Assets Average maturity of Liabilities Loan Maturity (Tenure) Rating Rating Instrument Ratings Agency > 5 Years 5% 1-3 Years CRISIL A Stable 3 -5 Years Long-term debt 91% CARE A Stable 4% CRISIL A Stable NCD CARE A Stable ICRA A Stable Grading CART MFI 1 Comprehensive MFI Grading (COCA) M-CRIL M2C1 • Sanction in hand ₹ 30,330 Mn Client Protection Certification M-CRIL Gold Level 23 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Digital Orientation Creating Opportunities… Technology – Infrastructure Customer Experience Early Cloud adopters Digital onboardingimproved from Scalable 30% in 2018 to 100% in 2022. Open API Cashless disbursement improved Architecture from 20% in 2018 to 97% in 2022. Efficiency Business Outcome ‘Touch & Tech” Loan Approval TAT reduced from 13 days in 2016 to ~4 days In 2022 Strategy Safe & Secure Email Security Scalability & Optimization of Resources EDR (Endpoint Branches increased from 375 in Detection & Response) 2018 to 1057 in 2022 with presence Device Encryption in 20 states & 396 districts Data classification & Advanced Customer Interface Data Loss Prevention UPI Collections Awarded ISO 27001:2013 Facial Recognition Realtime Credit Check 24 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Digital Orientation (Building for future) Creating Opportunities… Real-time insights with Data Lake and Analytics Driving operational efficiency with automated Credit Decisioning Continuous investment in core technology Best-in-class cyber resilience framework 25 February 11, 2023| © Fusion Micro Finance Limited Key Strengths : Strong Governance Creating Opportunities… Risk Management: Dedicated & Independent risk management function with strong focus on Credit, Operational, Market and other risk factors Strong governance mechanism consisting of Board Risk Mgmt. Committee (BRMC) & Mgmt. Risk committee (MRC) meetings on quarterly /monthly basis respectively Continuous monitoring of organization wide Risk Appetite, Key Risk Indicators and various other portfolio limits Systematic mechanism of identification of emerging risk through extensive use of data analytics and mitigation of identified risk & continuous engagement with Business Operation verticals Audit: Independent audit function reporting to Board Audit Committee on significant audit findings along with mitigation plan with focus on continuous improvement in control environment Strong & one of the biggest audit team in comparison to portfolio size in the industry Comprehensive risk-based audit of branches through detailed field visit & process coverage along with internal audit of IT, Credit Operation & other function using advanced technology solution Continuous review of adequacy and effectiveness of internal controls environment with focus on continuous process improvement & ensuring compliance with regulations Comprehensive grievance redressal mechanism 26 February 11, 2023| © Fusion Micro Finance Limited ESG - seeking to be a responsible Financial Institution Creating Opportunities… Responsible approach towards environment , community and employees as well as towards internal governance standards Continuous Engagement with Community and Employees Governance Standards Established approximately 2,831 initiatives across 333 districts in 21 50% representation to independent directors on the board as well as 2 states,whichhavebenefittedover700,000people nomineedirectorsandonlyoneexecutivedirector Started a skills development program aiming to provide livelihood Special veto powers for Chief Risk Officer and Head of Audit within new opportunitiestowomenandprovidedscholarshipstostudents areaapprovalcommittee Initiatives like funding cataract surgeries, providing reusable sanitary Risk Management Committee to review risk management policies in napkinstowomenandwheelchairstothedisabled relationtovariousrisksandregulatorycomplianceissues Supportingenvironmentalsustainability throughplantations, distribution Dedicated ALM committee to monitor maturity schedule of financial ofsolarlightsandsupporttoWorldWildlifeFund liabilities Featured on India’s “Great Place to Work” list consecutively in FY 22, Awarded ascore of 96.0%on the Code of Conduct Assessment for MFIs FY21andFY20.Also,ensurednopaycuts/layoffsduetoCovid-19 inIndiabyM-CRIL(1) Highest number of branches in states like Bihar and UP that Received “Financial Inclusion & Literacy Leadership Award” Awarded the “Gold” Client Protection Certification from have a large majority of districts rated low on financial from AWOKE India Foundation at India Financial Literacy SPTF and CERISE in 2022 inclusion(2) Conclave in 2020 1. Rated 96.0% on the Code of Conduct Assessment for MFIs in India, based on indicators of transparency, client protection, governance, recruitment, client education, grievance redress and data sharing, by M-CRIL, a global leader in the financial rating of microfinance institutions 2. States such as Uttar Pradesh and Bihar have a CRISIL Inclusix (index measuring the extent of financial inclusion) score below45, with –50% of districts in Uttar Pradesh and 65% districts in Bihar –having Inclusix scores below 40 as of FY16 27 February 11, 2023| © Fusion Micro Finance Limited Corporate Social Responsibility Creating Opportunities… Fusion creates a positive impact on economic, social, and environmental growth of disadvantaged communities through integrated and sustainable development initiatives 333 28 February 11, 2023| © Fusion Micro Finance Limited Corporate Social Responsibility Creating Opportunities… COVID19 Welfare Program Flood relief work Menstrual Hygiene Eye-care Program Beneficiaries: 5,07,263 Beneficiaries: 58,543 Beneficiaries: 6,653 Beneficiaries: 7,245 Programs: 1,953 Programs: 109 Programs: 8 Programs: 7 Wheelchair Distribution Financial & Digital Literacy Environment Sustainability Health Check-up camps Beneficiaries: 187 Beneficiaries: 39,621 Beneficiaries: 16,950 Beneficiaries: 22,398 Programs: 76 Programs: 161 Programs: 8 Programs: 129 29 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Business Performance 6 30 February 11, 2023| © Fusion Micro Finance Limited Profit and Loss Statement Creating Opportunities… ₹ in Million Profit & Loss Statement Q3 FY 23 Q3 FY 22 YoY % Q2 FY 23 QoQ % 9M FY 23 9M FY 22 YoY % FY22 Revenue from operations -Interest income 4,202.4 2,769.3 51.7% 3,997.6 5.1% 11,493.6 7,571.3 51.8% 10,643.2 -Other than interest income 383.8 49.3 678.3% 399.3 (3.9)% 916.7 436.6 110.0% 869.5 Total revenue from operations 4,586.2 2,818.6 62.7% 4,396.9 4.3% 12,410.3 8,007.9 55.0% 11,512.7 -Other income 78.8 148.6 (47.0)% 126.4 (37.7)% 382.5 280.0 36.6% 500.8 Total income 4,665.0 2,967.2 57.2% 4,523.3 3.1% 12,792.8 8,287.9 54.4% 12,013.5 Expenses -Finance costs 1,680.2 1,183.0 42.0% 1,573.3 6.8% 4,685.4 3,594.1 30.4% 4,959.6 -Employee benefit expense 841.8 612.7 37.4% 797.1 5.6% 2,361.2 1,686.3 40.0% 2,330.7 -Depreciation and amortization expense 19.5 14.6 33.6% 16.8 16.1% 51.1 36.6 39.6% 53.7 -Others expenses 285.7 198.7 43.8% 263.6 8.4% 782.8 536.1 46.0% 738.3 -Impairment of financial instruments 499.3 957.8 (47.9)% 611.8 (18.4)% 1,311.7 2,346.9 (44.1)% 3,686.9 Total expenses 3,326.5 2,966.8 12.1% 3,262.6 2.0% 9,192.2 8,200.0 12.1% 11,769.2 Profit before tax 1,338.5 0.4 - 1,260.7 6.2% 3,600.6 87.9 - 244.3 -Tax expense 313.9 (8.9) - 310.2 1.2% 874.4 2.3 - 26.7 Profit after tax for the period/year 1,024.6 9.3 - 950.5 7.8% 2,726.2 85.6 - 217.6 Pre-provision operating profit (PPOP) 1,837.8 958.2 91.8% 1,872.6 (1.9)% 4,912.3 2,434.8 101.8% 3,931.2 Net Interest Income (NII) 2,477.2 1,569.9 57.8% 2,410.7 2.8% 6,734.6 3,920.7 71.8% 5,606.6 31 February 11, 2023| © Fusion Micro Finance Limited Balance Sheet Creating Opportunities… ₹ in Million Financial Position Q3 FY 23 Q3 FY 22 YoY % Q2 FY 23 QoQ% FY22 Financial and Non financial assets -Cash & Other Bank Balances 11,031.8 9,767.9 12.9% 9,167.0 20.3% 10,113.7 -Bank balances other than cash and cash equivalents 1,156.2 1,360.9 (15.0)% 1,128.6 2.4% 1,422.3 -Loans -(Net of Impairment Loss Allowance) 75,589.9 55,117.3 37.1% 70,356.9 7.4% 59,181.9 -Current and deferred tax assets 1,182.0 1,236.9 (4.4)% 990.2 19.4% 1,221.2 -Property, plant and equipment, Right of use asset and Intangible assets 210.1 189.4 10.9% 206.4 1.8% 191.9 -Other financial assets 854.8 428.3 99.6% 947.1 (9.8)% 712.1 -Other non-financial assets 91.3 67.1 36.1% 100.0 (8.7)% 61.7 Total assets 90,116.1 68,167.8 32.2% 82,896.2 8.7% 72,904.8 Financial and Non Financial liabilities -Debt securities 6,355.0 8,528.1 (25.5)% 6,570.6 (3.3)% 7,837.8 -Borrowings (other than debt securities) 57,412.2 43,648.3 31.5% 57,267.6 0.3% 48,294.7 -Subordinated liabilities 1,628.8 1,098.0 48.3% 1,627.7 0.1% 1,625.7 -Trade payables & Derivative financial instrument 1,023.7 389.5 162.8% 740.4 38.3% 451.5 -Other financial liabilities 1,428.1 1,068.4 33.7% 1,378.5 3.6% 1,136.5 -Other non-financial liabilities 217.0 199.1 9.0% 174.8 24.1% 179.2 Total liabilities 68,064.8 54,931.4 23.9% 67,759.6 0.5% 59,525.3 Total equity 22,051.3 13,236.4 66.6% 15,136.6 45.7% 13,379.5 Total liabilities and equity 90,116.1 68,167.8 32.2% 82,896.2 8.7% 72,904.8 32 February 11, 2023| © Fusion Micro Finance Limited Key Ratios Creating Opportunities… YoY Margin Analysis % Cost to Income Opex 73.4% 9.2% 24.1% 65.6% 63.4% 8.1% 21.7% 22.4% 21.2% 20.5% 18.8% 20.2% 50.9% 44.3% 7.3% 6.4% 14.1% 13.5% 12.7% 12.3% 44.3% 39.4% 5.3% 5.5% 5.5% 11.2% 10.4% 10.3% 10.0% 8.2% 9.7% 8.8% 9.2% 8.4% 9.9% FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 H91MFFYY'2’323 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 Yield On Portfolio Cost of Borrowings Net Interest Margin QoQ Margin Analysis % Cost to Income Opex 5.9% 20.3% 20.7% 46.3% 44.7% 19.1% 19.5% 17.7% 38.4% 36.6% 36.5% 5.6% 10.3% 9.9% 10.1% 10.1% 10.4% 5.5% 5.5% 5.4% 10.2% 10.3% 9.4% 8.7% 7.8% Q3'FY22 Q4FY'22 Q1FY'23 Q2FY'23 Q3FY'23 Q3FY'22 Q4FY'22 Q1FY'23 Q2FY'23 Q3FY'23 Q3FY'22 Q4FY'22 Q1FY'23 Q2FY'23 Q3FY'23 Yield on Portfolio Cost of Borrowings Net Interest Margin 33 February 11, 2023| © Fusion Micro Finance Limited Key Ratios Creating Opportunities… GNPA NNPA 5.5% 5.7% 2.2% 4.0% 3.7% 1.6% 0.9% 1.5% 0.6% 1.1% 0.4% 0.4% 0.1% 0.2% FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 ROA (On Avg. AUM) ROA (On Avg. Assets) ROE 4.5% 4.7% 20.5% 11.5% 2.4% 2.2% 1.8% 1.8% 7.6% 0.9% 1.1% 3.6% 0.6% 0.4% 0.4% 0.3% 2.4% 1.7% FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 9MFY'23 -2.5% -3.3% -16.4% 34 February 11, 2023| © Fusion Micro Finance Limited MSME Business Creating Opportunities… MSME vertical launched in Dec 2019 to tap the potential of the ‘missing middle’ Building credit assessment capability …nucleus of our MSME strategy Clear focus on mapping adjacencies and potential thereof Business Update ( As of 9M FY23) : Total Clients : 8560 GLP (₹ Mn) : 2,312 States : 8 Branches : 54 Team Size : 592 35 February 11, 2023| © Fusion Micro Finance Limited Recent Awards & Accolades Creating Opportunities… We are honoured and proud to have received the “ MICROFINANCE ORGANIZATION OF THE YEAR (LARGE)” award by Inclusive India Awards 2022, a joint initiative of Access Development Services and Niti Aayog. The award was handed over by Dr. V. Anantha Nageswaran, CEA Govt. of India. 36 February 11, 2023| © Fusion Micro Finance Limited Highly Experienced Board with Strong Governance Creating Opportunities… EExxppeerriieenncceedd BBooaarrdd ooff DDiirreeccttoorrss  Chairperson of the governing board of  Managing Director at Warburg Pincus India Microfinance Institutions Network Limited  Served on the board of Creditaccess Grameen and Muthoot Microfinance, among  Over 26 years of experience in service  20 years of experience others industry  Previously worked with 3i India and Mckinsey  Over 15 years of experience  Holds a Post-Graduate Certificate from XLRI, & Company Devesh Sachdev Jamshedpur and has also completed HBS Narendra Ostawal Kenneth Dan  Holds a PhD from the Oxford Centre for Promoter, MD & CEO Accion Program from Harvard Business Nominee Director  Holds a PGDM in business management Vander Weele Mission Studies, Open University School, USA from IIM Bangalore Nominee Director  Over 35 years of experience working with  Over 34 years of experience working with  C M u a r n re a n g t e l m y e o n n t, K th ri e shn b a oa I r n d stit o u f te II o FL f M W e e d a ic lt a h l the Government of India, MFIN, and Oxfam companies like Grindlays Bank and SciencesandIndiumSoftware(India) India among others Deutsche Bank  Currently, on the board of Moneyboxx  Currently on the board of Havells India, and  Over35yearsofworkexperience Ratna Dharashree Finance Limited , and Dilip Buildcon Limited Namrata Kaul Schneider Electric among others Pankaj Vaish  Bachelor from IIT – BHU and MBA from Vishwanathan Independent Independent UniversityofMinnesota,U.S.A. Independent Director Director Director SSuuppppoorrtteedd bbyy MMaarrqquueeee IInnvveessttoorr BBaassee Other Promoters (Honey Rose) (Creation I and Creation II) 37 February 11, 2023| © Fusion Micro Finance Limited Stable & Experienced Management Team Creating Opportunities… 38 February 11, 2023| © Fusion Micro Finance Limited Abbreviations Creating Opportunities… AUM Asset Under Management PAT Profit After Tax NIM Net Interest Margin ROE Return of Equity ROA Return on Assets ECL Expected Credit Loss CRAR Capital Risk Adequacy Ratio GNPA Gross Non-Performing Assets NNPA Net Non-Performing Assets NII Net Interest Income PPOP Pre-Provision Operating Profit before tax COB Cost of Borrowing CAGR Compound Annual Growth Rate Opex Operating Expenses YoY Year on Year QoQ Quarter on Quarter Mn Million K Thousand FY Financial Year 9M Nine Months Q Quarter ALM Asset Liability Management TAT Turn Around Time API Application Programming Interface UPI Unified Payments Interface ISO International Organization for Standardization GLP Gross Loan Portfolio 39 February 11, 2023| © Fusion Micro Finance Limited Definitions Creating Opportunities… • AUM represents the aggregate of principal outstanding for all loans to customers and assets pertaining to securitization, assignment and business correspondent portfolio,asofthelastdayoftherelevantperiod/year • Net Interest Margin represents net interest income for the relevant period/year as a percentage of average loans to customers for such period/year. Averageloanstocustomersrepresentthesimpleaverageofourloanstocustomersasofthelastdayoftherelevantperiod/yearandthatasofthelastday ofthepreviousperiod/year derivedfromourRestatedFinancial Statements. • NetInterestIncomerepresentsinterestincomeonloanportfoliofortherelevantperiod/yearreducedbyfinancecostsforsuchperiod/year • Return on Assets represents profit for the relevant period/year derived from our Financial Statements as a percentage of average gross AUM for such period/year • Return on Equity represents profit for the relevant period/year derived from our Financial Statements as a percentage of average equity for such period/year • Pre-Provision Operating Profit before tax represents the sum of profit before tax for the relevant period/year and impairment on financial instruments for suchperiod/year • Debt to Equity ratio represents our total borrowings divided by total equity attributable to shareholders as of the last day of the relevant period/year derived from our Restated Financial Statements. Total borrowings represent the aggregate of debt securities, subordinate liabilities, borrowings (other thandebtsecurities)asofthelastdayoftherelevantperiod/year • MarginalCostofBorrowingrepresentstheweightedaveragecostofborrowings asapercentage ofborrowingsavailedfortherelevantperiod/year. • CostofBorrowingrepresentsfinancecostasapercentageofaverageoutstandingborrowingsfortherelevantperiod/year. • Cost to Income ratio represents operating expenses (which comprises the aggregate of employee benefits expense, depreciation and amortization and otherexpenses)asapercentageoftotalincomelessfinancecostsfortherelevantperiod/year • GrossNPArepresentsourportfolioofStageIIIAssets(overdueformorethan90days)asofthelastdayoftherelevantperiod/year • Net NPA represents Stage III Assets (Gross NPAs) as of the last day of the relevant period/year as reduced by impairment allowance on Stage III Assets for suchperiod/year. 40 February 11, 2023| © Fusion Micro Finance Limited Creating Opportunities… Creating Thank You Opportunities… For Investor queries contact: Mr. Deepak Madaan| Email: investor.relations@fusionmicrofinance.com | +91-9289224563 41 February 11, 2023| © Fusion Micro Finance Limited