HOMEFIRST

Tech in Mind Service at Heart Smart Loans for Affordable Homes! Investor Presentation –Q1 FY22 Safe Harbor Home This presentation and the accompanying slides (the "Presentation"), which have been prepared by First Finance Company India Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 02 InvestorPresentation–Q1 FY22 Vaccination Drive 1700 people vaccinated at Home First Head Office Home First in collaboration with all True North portfolio companies and hospitals such as Apollo and Cloudnine organized a vaccination camp in Mumbai. 1700 employees of various companies and their dependents including household support staff were vaccinated over a period of 7 days 454 employees, dependents and business partners of HomeFirst also got vaccinated in this drive 03 InvestorPresentation–Q1 FY22 y-o-y q-o-q Executive Summary |Q1FY22 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS ₹42,943 Mn ₹3,046 Mn 1.9% +476.9% -32.6% +90 bps +10 bps +3.7% +18.5% Spread * Cost to Income Opex to Assets 5.5% 32.1% 2.5% +330 bps -590 bps +90 bps +10 bps -10 bps -40 bps PPOP Profit After Tax (PAT) Return On Assets (ROA) ₹607 Mn ₹351 Mn 3.1% +6.0% +19.3% -9.1% +12.2% -120 bps +20 bps bps *asperIGAAP No ECGLS | 0.6% of book restructured | Disbursement at 67.4% of Q4FY21 04 InvestorPresentation–Q1 FY22 Macro Economy Gems & Jewellery Export have Crossed pre-Covid levels (Rs Bn) Economy coming back to normal Unemployment Levels in Key Western India States (%). PPrree CCOOVVIIDD Post COVID PPrree CCOOVVIIDD Post COVID 247 252 Vaccination in India reached 24% of at least 9.2 213 215 212 209 one dose (19th July), low fatalities is driving 194 191 177 167 183 182 167 181 184 183 6.7 155 136 149 146 132 optimism. 5.55.3 6.2 5.5 4.9 5.8 116 108 4.5 4.4 4.5 4.4 102 Leading economic indicators of major sectors 3.3 3.2 3.4 3 3.9 3.5 2.2 in large states highlights pick-up. 1.8 34 0 Power consumption back to pre-covid 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 -y a M -n u J -lu J -g u A -p e S -tc O -v o N -c e D -n a J -b e F -r a M -r p A -y a M -n u J -lu J -g u A -p e S -tc O -v o N -c e D -n a J -b e F -r a M -r p A -y a M -n u J levels in major states of our presence. Peak Gujarat Maharashtra power demand touched an all time high of India Industrial Production (IIP Index) reached pre-Covid levels 191,243 MW on 30th June. Power consumption in major industrialised states reached pre-Covid levels (Billion Units) Crude Oil crossing $70 also highlights global 16 PPrree CCOOVVIIDD Post COVID 15 15 14 13 economy recovery. 13 145 135 129132 126 123124 129 135 137 134 124 130 127 137137 129 127 India’s Q1 FY22 export highest ever at 11 11 11 1 1 1 0 11 1 0 10 1 0 1 0 10 117 118117 117 9 9 9 9 9 108 $95bn. Export growth driven by Engg goods, 7 7 7 90 Gems & Jewellery and Chemicals sectors. 6 6 6 5 6 5 6 6 7 7 6 6 6 5 6 5 5 5 5 5 5 7 5 Gujarat's Unemployment level is lower than 54 pre-Covid numbers for the month of Jun'21. 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 -y a M 1 -n u J 1 -lu J 1 -g u A 1 -p e S 1 -tc O 1 -v o N 1 -c e D 2 -n a J 2 -b e F 2 -ra M 2 -rp A 2 -y a M 2 -n u J 2 -lu J 2 -g u A 2 -p e S 2 -tc O 2 -v o N 2 -c e D 2 -n a J 2 -b e F 2 -ra M 2 -rp A 2 -y a M Maharashtra Gujarat Tamil Nadu P A r n a d d h e r s a h Karnataka Telangana Apr-19 May-19 Jun-19 Apr-20 May-20 Jun-20 Apr-21 May-21 Source: CMIE, CEA, tradingeconomics.com 05 InvestorPresentation–Q1 FY22 HomeFirst –Who we are Technology driven affordable housing finance company with pan India presence Home loans to first time home buyers with predominant focus on salaried individuals having income < ₹50k p.m 92% of book comprise of housing loans with average ticket size of ₹1.0Mn Strong liquidity pipeline with positiveALM and zero commercial papers Data science backed centralized underwriting with in-depth understanding of local property markets 51,718 74% salaried ₹14,802 Mn 709 72 76 13 137 Active customer Occupation Mix of Liquidity Buffer as on Jun’21 Number of Branches Districts accounts AUM (Q1FY22) employees States/UT Touchpoints (Q1FY22) 06 InvestorPresentation–Q1 FY22 Our Journey Scalableoperatingmodel CARE Rating CARE / ICRA Rating We got listed BBB- BBB+ A- A+ ₹42,943 Mn Warburg Pincus investedin thecompany(2) AuM (Jun’21) SeriesC 60,000+ sanctions True North acquires AuM crosses majority ₹35bn. stake 30,000+ customers GIC Net worth Co-investment crosses SeriesB with ₹5,000 Mn. 41,411 AUM 10,000 TrueNorth(1) AlphaTCHoldings customers 36,183 Private Limited spread across Started 5,000 25+cities SeriesA Operations 1,000 Became customers 24,436 inGujarat & Profitable 13,559 customers TamilNadu 8,473 5,477 3,368 1,629 Incorporation 200 690 20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Early Days and Proof of Concept Consolidation Scaling Up Note:AUMinINRMillion (1)Aether hasco-investedwithTrueNorth.Waverlyowns100%ofAetherClassBShares. Waverlyisawholly-ownedindirectsubsidiaryofGIC(Ventures)Pte.Ltd (2)InvestmentbyOrangeCloveInvestmentsB.V (anaffiliateofWarburgPincus).WarburgInvestedon1stOctober2020 07 InvestorPresentation–Q1 FY22 Share Holding as on Jun’21 PROMOTER &PROMOTER GROUP %Holding TRUENORTHFUNDVLLP 20.2 AETHER (MAURITIUS) LIMITED (GIC)^ 13.4 TRUE NORTH FUND V LLP 11.0% KEYINVESTORS %Holding 20.2% AETHER (MAURITIUS) LIMITED ORANGE CLOVE INVESTMENTS B.V 28.8 (WARBURG PINCUS) (GIC)^ 7.8 BESSEMER INDIA CAPITAL HOLDINGS II LTD 11.6% ORANGE CLOVE MFs&AIFs %Holding* INVESTMENTS B.V (WARBURG SUNDARAM 2.1 PINCUS) No. of MOTILAL OSWAL 1.9 Shareholders BESSEMER INDIA CAPITAL ADITYA BIRLA SUNLIFE 0.7 HOLDINGS II LTD 7.2% 105,637 NIPPON MF 0.6 MFs, AIFs & Insurance Cos. FIIs &FPIs %Holding* 13.4% BUENA VISTA 1.7 7.8% ALMEHWAR COMMERCIAL INVESTMENTS 1.4 FIIs & FPs NOMURA 1.2 28.8% MORGAN STANLEY 1.0 Public & Others TTASIA -PACIFIC EQUITY FUND 0.8 KUWAIT INVESTMENT AUTHORITY FUND 0.8 * Holding through various schemes and funds ^Waverly owns100%ofAetherClassBShares.Waverlyisawholly-ownedindirectsubsidiaryofGIC(Ventures)Pte.Ltd 08 InvestorPresentation–Q1 FY22 Experienced Management Team with Distinguished Board ExperiencedManagementTeam DistinguishedBoard ManojViswanathan AjayKhetan DeepakSatwalekar Chairman & ChiefExecutiveOfficer ChiefBusinessOfficer ExMD,CEO-HDFCLife IndependentDirector 24+yearsinConsumerLending. 11 19+yearsinConsumerLending& yearswithCitigroup. Technology at Macquarie Group, HP NRCChair SaktiPrasadGhosh FinancialServicesandCitigroup & IndependentDirector Ex-ED-NHB GauravMohta VilasiniSubramaniam SujathaVenkatramanan AuditCommitteeChair GlobalHead,CreditBureauManagement, & ChiefMarketingOfficer Head–StrategicAlliances CreditControl-HSBC IndependentDirector 17+yearsinConsumerLendingand 16+yearsinProductDevelopment, Analytics,& ProductManagementwith BusinessStrategyatCitigroup &Janalakshmi DivyaSehgal KotakBank,Citigroup&RPG-Foodworld FinancialServices Partner–TrueNorth Foundingmembers ManinderSinghJuneja Partner–TrueNorth NutanGabaPatwari RamakrishnaVyamajala RajagopalanSanthanam MD–TrueNorth ChiefFinancialOfficer ChiefHumanResources 14+yearsinBusinessFinance, 15+yearsinHRoperationsatIDFC NarendraOstawal OperationManagementatHUL, ITC BankandVedanta andPhilipMorris MD– WarburgPincus VishalGupta AbhijeetJamkhindikar ArunchandraJupalli MD-BessemerIndia BusinessHead-Maharashtra BusinessHead-South 19+YearsinProject&Developer 17+YearsinConsumerLendingand ManojViswanathan FinancingatHDFCLtd Mortgage at Citigroup and Karvy MD&CEO-HomeFirst FinancialServices 09 InvestorPresentation–Q1 FY22 Meet our customers FormalSalaried InformalSalaried SelfEmployed Customer1 Customer2 Customer3 Age:44/Location:KRPuram(suburbsofBangalore) Age:32/Location:Sayan(suburbsofSurat) Age:36/Location:Avadi(suburbsofChennai) ? y e h t 74% 26% e r a o h Salaried Selfemployed W Teacherwithseveralyearsofexperience and Diamondpolisherfor10+yearswithmonthly family Ownsanironfabricatingshopfor15years with monthlyfamilyincomeof₹49,000 incomeof₹29,000 monthlyincomeof₹40,000 Salary credit in bank was ₹19,348 with additional Cash salary of ₹20,000 p.m. His wife earned a Faced difficulty with lengthy documentation process at income through private tuitions in cash salary of ₹9,000 also in cash. banks; taking time out of his workshop meant loss of a ? day’s business y r o Husband is a maintenance officer earning ₹13,000 p.m Found it challenging to approach a bank for a ts housing loan due to cash income Door step service and workplace verification to r ie confirm scale of business, reference checks with h s t Assessment based on total income (salary + tuition Workplace verification to confirm income sources along neighboring shops and home verification i ta income) unlike traditional financiers who will with discussions with owner / boss to assess expertise, h W consider only salary income craftsmanshipandjobstability Home Loan sanctioned: ₹0.93mn at RoI of 14.5% and EMI of ₹11,900 (loan sanction in 4 hours from HomeLoansanctioned: ₹1.5mn at RoI of 13% and Home Loan sanctioned: ₹0.8mn at RoI of 13.5% submission of documents) EMI of ₹17,600 and EMI of ~ ₹9,700 e c Dn IV O e ir e R C e O s V il I i D en a t. n H d a is s r n e o g t u m la i r s s w e it d h a h s e i r n p g a le y m pa e y n m ts e . nt through R C e O s V il I ie D n a t. n H d a is s r n e o g t u m la i r s s w e it d h a h s is in p g a le ym p e a n ym ts e . nt through H he e ’ s h a b s e e b n e e im n p r a e c s t il e ie d n b t y th C ro O u V g I h D C w O a V ve ID 2 w w a i v th e 1 2 . E H M ow Is e ver, Cp x overdue. E DatafortheperiodQ1FY22 10 InvestorPresentation–Q1 FY22 Our unique value proposition to our customers Who are our customers… What do our customers need What challenges do they face NPS Salaried and self-employed Home loan requirement Inability to meet individuals primarily in the ₹0.5 -1.5 mn documentation requirements range (1) of traditional lenders 75%+ Customers with annual 83 household income level less than Access to formal housing Time consuming loan finance sanction process ₹0.6 mn Minimal disruption to daily Dealing with middle men First time home buyers work routine For Q1 FY22 30% customers are new to credit Our Value Proposition Access Speed Transparency Service Understanding customer’s 48 Hr Turn Around Time for Mandatory counselling Home visits coupled with needs via well educated & Approval sessions for customers on paperless process to ensure trainedRMs loan and insurance terms minimal disruption to daily Centralised & consistent customer routine Right-size the loan througha underwriting Digital access to loan holistic evaluation of all documents for the Dedicated Service Manager formal/informal sources of Mobility solutions for our customer for every customer income customers, employees and sales channels for quick and No prepayment charges Customer app for easy Alternative documents (Life efficient processes and service and easy prepayment access to loan statements, insurance policies, property options prepayments and raising deeds etc.) used for evaluation service requests Note: Data for the period Q1FY22 (1) 70%+ loans with Average ticket size between INR 0.5-1.5mn as of Q1FY22 11 InvestorPresentation–Q1 FY22 Distribution Strategy 0-4 4-7 7-15 ContributiontoIndia'sGDPFY’20 (%) Existingbranches-72 Newbranchlocations-33 Pan IndiaDistributiondriven by strategic marketselection &contiguous expansion Digitalbranches-32 72 76 12 01 137 GeographicExpansion Branches Districts States UT Touchpoints States/Territories Number of Percentage of gross loan assets as on Branches Districts Q1FY22 FY21 FY20 FY19 Gujarat 20 19 38.2% 38.2% 39.7% 40.8% Maharashtra 15 14 18.7% 19.2% 21.7% 28.4% TamilNadu 11 13 11.4% 11.1% 9.9% 8.5% Business commenced in 10 new branch locations. Karnataka 4 3 8.9% 9.1% 9.0% 8.2% In addition, 12 new digital branches have been Rajasthan 6 4 5.3% 5.5% 5.0% 3.8% launched. Telangana 4 3 5.7% 5.5% 4.9% 3.2% Taking the total number of touchpoints to 137 MadhyaPradesh 5 6 4.5% 4.4% 3.9% 2.6% UttarPradesh& 1 6 3.0% 2.9% 2.6% 2.0% Uttarakhand Haryana &NCR 1 2 0.9% 1.0% 1.1% 1.3% Chhattisgarh 1 2 1.2% 1.2% 0.9% 0.8% AndhraPradesh 4 4 2.2% 1.9% 1.3% 0.4% Total 72 76 100.0% 100.0% 100.0% 100.0% States/UT include states/UT from where we source loans irrespective of physical presence of a branch in those states/UT Note:SourceforContributionofstatestoIndia'sGDP:NSO,MOSPI Disclaimer:Mapnottoscale.Alldata,informationandmapsareprovided“asis”withoutwarrantyoranyrepresentationofaccuracy,timelinessorcompleteness 12 InvestorPresentation–Q1 FY22 Omni channel lead generation driving sourcing 68.7% Diversified lead generationchannels|Q1 FY22 Diversified channels for generating leads such as connectors, builder ecosystem,digital,etc. 12.2% 6.0% 4.3% 0.5% 1.2% 2.5% 1.7% 2.9% 100% in-house conversion by HomeFirst RMs. Construction Digital Digital Construction Micro Marketing Referrals Builder Connectors Alliances Partnerships Marketing Community Connector Ecosystem …effectivelymanagedvia connectorapp ScanandDownload 93.7% connectors registered on the ConnectorApp 13 InvestorPresentation–Q1 FY22 Data Science backed centralized underwriting Risk Management Design Tech-Led Centralised Loansapproved Salariedcustomers 100+datapoints& digitally Consistency inunderwriting within48hrs captured data for allcustomers Build detailed understanding Integrated CRM and Loan of customer via field visits by API integrationwith thirdparty ManagementSystem on cloud 91% RM independent sources like based platform Hunter,Perfios etc. In-depth understanding of ProprietaryMachine learning operating geographies and All customer and internal & Customer scoring models property types communication, documents, usedfor credit decision ForQ1FY22 photographs, videos available Low underconstruction on a singlecloud basedsystem exposureandlow LTV 1% 23% 34% 15% 9% LowUnderConstructionRisk LTVonOrigination Low effective LTV on book EMI <50% <50% Q1FY22 Q1FY22 Q1FY22 Pre-EMI 58.7% 50-80% 47.4% 50-80% 90% Early EMI 80%+ 80%+ 42% 35% 51% Note:“EMI”areloanswheretheconstructioniscompletedhenceloanisfullydisbursedandEMIonloanisbeingcollected.“Pre–EMI”areloanswherepropertyisunderconstructionhenceloansarepartiallydisbursedaccordinglyonlyinterestisbeing collectedfromthecustomer.EMI collectionwillstartfulldisbursementshappen.“EarlyEMI”areloanswherepropertyisunderconstructionhenceloansarepartiallydisbursedhoweverEMIhasstartedonrequestofcustomers. 14 InvestorPresentation–Q1 FY22 Scalable operating model built on holistic technology usage Tech Interventions APIIntegrationwiththirdparty HomeFirstAppforallstakeholders databases E-NACH E- Sign 360o viewofcustomerforemployees Proprietarypropertypricepredictor E- Vault Electronicpayments E-Stamp paper Machinelearningmodelsto Edcast:AIpoweredknowledge assistunderwriting solution E-KYC E-Signature MyGuide:GuidedDIYTraining Customersregistered END -TO - END TableauServerforeasyvisualization Application onapp DIGITAL PROCESS 67% FOR HOUSING LOANS DataonCloud Digitalmarketingonmajor onlinemedia IntegratedCRMandloan management As of 30 Jun’21 System Allianceswithdigitalplayers LegalandTechnicalPortal 10,000+leadsgeneratedeverymonth Google rating of PaymentautomationviaBharatBillPay HomefirstCustomerApp ServicesandFinoPaymentsBank DigitalDocumentManagement 4.2 As of 29 Jul’21 15 InvestorPresentation–Q1 FY22 Digital Adoption Avg time spent by user on the app No of Unique User logins on App Unique Paying Users via App 2m 30 sec YoY: 63.6% YoY: 79.2% 28,848 28,876 For Q1 FY22 3,975 3,756 22,672 19,551 2,826 17,646 2,521 2,218 %of unique user logins of active customers 55.8% DIGITAL Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 For Q1 FY22 DASHBOARD % of service requests raised on app Service requests raised on app No of Payments via Customer App 75.8% YoY: 148.4% YoY: 134.6% 9,108 For Q1 FY22 8,724 8,278 6,477 5,893 5,747 4,412 4,994 Average payment 3,719 2,607 per user on app ₹30,630 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 For Q1 FY22 16 InvestorPresentation–Q1 FY22 Healthy Growth in Loan Book and Disbursements Disbursement(₹Mn) Last4Years Last 5 Quarters 4,518 3,488 Q1FY22 disbursement at 67.4% of Q4FY21 3,046 2,432 15,728 16,183 10,966 7,455 528 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 FY18 FY19 FY20 FY21 AssetsUnder Management(₹Mn ) Last4Years Last5 Quarters 18.5% y-o-y AUM growth 42,943 41,411 41,411 39,406 36,225 37,300 3.7% growth q-o-q 36,184 45% CAGR (3 Years FY18-FY21) 24,436 3.1% BT Out rate for Q1FY22 13,559 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 FY18 FY19 FY20 FY21 18 InvestorPresentation–Q1 FY22 Consistent Portfolio Metrics |Jun’21 1% 1% 6% 1% AUM byProduct AUM byOccupation Housing Loan 25% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharpfocuson High ratio of 92% 74% housingloans salariedcustomers 70% 3% 8% AUM by Credithistory AUM byTicketSize Upto 0.5mn AVG:736 Have Credit History 21% 0.5mn - 1mn 1mn - 1.5mn 30% Credit New to Credit ATS:10.1L 1.5mn - 2.5mn Bureau Above 2.5mn Score Granularloanbook Both credit tested 33% and new to credit customers 35% AllfiguresasofJun’21 19 InvestorPresentation–Q1 FY22 Expansion in Spreads PortfolioYield COB Spread Net InterestSpreadMovement Last5 Quarters Last4Years 12.9% 13.0% 13.1% 13.1% 13.0% 12.8% 12.7% 12.6% 12.3% ContinuedImprovement inCostof Borrowing 8.8% 8.8% 8.5% 8.4% 8.3% 8.0% 8.0% 7.4% 7.2% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 5.0% 5.4% 5.5% 4.8% 5.0% Incremental yield for 4.6% 4.1% 3.8% 3.9% Q1FY22 stood at 13.0% Marginal COB for Q1FY22 stood at 7.6% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 DataasperIGAAP 20 InvestorPresentation–Q1 FY22 Healthy Leading Indicators Bouncerate Bouncerate:On the day of EMIpresentation Bounce rates resilient and 36.4% improving 28.3% 20.1% 18.3% 17.3% 16.1% 11.7% 10.5% 10.8% 10.2% 9.2% 9.5% 10.0% 10.9% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Jul'21 21 InvestorPresentation–Q1 FY22 Healthy Leading Indicators CollectionEfficiency(1) UniqueCustomers(2) Collection Efficiency Collectionefficiency trending back to normal levels 97.8% 97.7% 98.5% 94.3% 99.8% 93.8% 96.3 9 % 5.3% 96.6% 95.5% 97.6% 96.1% 96.3% 96.3% 96.9% 94.7 9 % 4.3% 94.0% 93.3% 97.6% 95.0% 84.6% 83.5% 78.4% 79.8% 72.9% 74.7% 72.5% 64.4% 63.7% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Note:(1)CollectionEfficiency=Total#ofEMIsreceivedinthemonth(includingarrearsofpreviousmonths)/Total#ofloanaccountswhoseEMIsaredueinthemonth (2)Uniquecustomers= #ofcustomerswhomadeatleastonepaymentinthemonth/Total#ofCustomerswhoseEMIs'aredueinthemonth 22 InvestorPresentation–Q1 FY22 Sound Credit Indicators DPD 1+ / POS DPD 30+/ POS % Stage3/POS Stage2/POS No ECGLS 5.8% 8.9% 1.9% 4.1% 4.1% 4.1% 7.5% 6.7% 6.2% 6.2% 1.8% 1.6% 1.8% 4.4% 2.0% 3.1% 3.2% 1.7% 1.4% 1.5% 1.3% 3.8% 2.0% 1.0% 0.6% of POS 0.6% 0.8% 2.3% 1.0% 0.9% 2.5% 2.3% restructured 0.8% 0.9% 0.9% (208 borrowers) 0.5% 0.4% Mar'18 Mar'19 Mar'20 Mar'21 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Mar'18 Mar'19 Mar'20 Mar'21 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 GrossStage3/ POS % Net Stage3/ Net POS % Stage 3% range bound SARFAESIrecovery 1.4% process has 1.9% 1.8% 1.8% 1.2% 1.2% 1.1% commenced 1.6% 0.8% 1.0% 0.7% 1.0% 0.9% 0.6% 0.6% 0.8% 0.5% 0.6% Mar'18 Mar'19 Mar'20 Mar'21 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Mar'18 Mar'19 Mar'20 Mar'21 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Loans having DPD 30-90 are classified as Stage 2 loans and Loans having DPD 90+ are classified as Stage 3 loans 23 InvestorPresentation–Q1 FY22 Diversified Funding Profile at DA competitive cost of borrowing NCD COB%(Representsquarterlyavg.) NHBRefinance NBFC Extended banking relationship Borrowings Mix and Cost of Borrowingtrend PublicSectorBanks with foreign bank by adding PvtSectorBanks HSBC Bank. 100% 10.00% 15% 90% 17% 21% 19% 22% 21% 8.3% 19% 20% 22% 9.00% Diversified mix of 19* marquee Lenders 8.9% 8.9% 8.8% 23%80% 20% 8.6% 8.5% 7% 7% 6% 8.00% 5% 8.0% 6% 70% 18% 21% 7.4% 7.00% 7.2% 2% 60% 1% 1% 2% 21% 21% 26% 29% 26% 6.00% 50% 2% 2% 1% 5.00% ZERO borrowing 32% 32% 1% 1% 39%40% 33% 24% 4.00% throughcommercialpapers 29% 27% 25% 30% 28% 3.00% 20% 2.00% 21% 10% 30% 28% 25% 21% 22% 19% 19% 21% 1.00% Costofborrowing 0% 0.00% trendingdown Jun'19 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 Dec'20 Mar'21 Jun'21 Some of our Strongand longstanding bankingrelationships Short term rating of A1+ (ICRA and India Public StateBankofIndia CentralBankofIndia UnionBank Private HDFCBank ICICIBank AxisBank Ratings) Sector PriSveactteor NBFC Bajaj Finance Banks Banks IDBIBank BankofIndia Sector FederalBank KotakMahindraBank HSBC Banks ValidationbyNHB- Singlelargestlenderwith ₹10,341.69Mnoutstanding20+lines Longtermratingof A+Stable(ICRAandCARE) *includestwobankstowhomNCDswereissued.COBdataisasperIGAAP 24 InvestorPresentation–Q1 FY22 ALM Position as of Jun’21 Inflow Outflow Cumulative Surplus 9,579 8,383 8,036 11,023 20,589 10,713 (₹Mn) Robust ALM 67,983 profile ensuring sufficientliquidity 60,770 buffers 57,270 43,184 40,181 Cumulative Positiveflows 32,161 across all the 22,303 timebuckets 17,077 14,343 14,267 8,694 4,765 0-3months 3-6 months 6-12 months 1-3 years 3-5 years 5+ years ClassificationofassetsandliabilitiesunderdifferentmaturitybucketsisbasedonthesameestimatesandassumptionsasusedbytheCompanyforcompilingthedetailedALMreturnsubmittedtoNHB. 25 InvestorPresentation–Q1 FY22 Securitization Volume ₹3,574 Mn ₹3,003 Mn ₹2,756 Mn Consistent demand for securitization ofthecompany’s 2,383 portfolio 1,844 1,491 1,472 1,159 1,183 611 373 - - - - - Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 26 InvestorPresentation–Q1 FY22 Strong Liquidity Position Liquidity Buffer as on Jun’21 (in ₹Mn) Unencumbered Cash and Cash equivalent 10,007 Un-availed Sanction from NHB - 4,795 Un-availed Sanction from Banks Total- 14,802 Particulars (in ₹Mn) Q2 Q3 Q4 Q1 FY22 FY22 FY22 FY23 ₹4,383 million Opening Liquidity 14,802 15,191 14,632 14,384 Liquidity raisedduring Q1 FY22 Add: Principal Collections & 2,751 2,733 2,635 2,591 Surplus from Operations Less: Debt Repayments 2,362 3,292 2,883 2,217 Closing Liquidity 15,191 14,632 14,384 14,758 DataasperIGAAP 27 InvestorPresentation–Q1 FY22 Financial Highlights ProfitAfterTax(₹Mn) Net worth (₹Mn )(1) EquityRaised - 1508 3281 3450 - 2569 11 (₹Mn) 1001 13805 13805 14173 796 Strong profit growth Strong NW, and 9334 9726 lowA/E to despite maintaining 457 386 313 351 high liquidity and 5227 supportgrowth 160 3252 conservative COVID provisioning FY18 FY19 FY20 FY21 Q1FY21 Q4FY21 Q1FY22 FY18 FY19 FY20 FY21 Q1FY21 Q4FY21 Q1FY22 ReturnonAverageAssets(1) ReturnonAverageEquity(1) A/E 3.7x 4.5x 4.1x 3.5x 3.8x 3.4x 3.2x 4.3% 16.2% 3.1% 2.9% 2.4% 2.7% 2.5% 10.8% 10.9% 10.1% 10.0% 8.7% 1.4% 5.1% FY18 FY19 FY20 FY21 Q1FY21 Q4FY21 Q1FY22 FY18 FY19 FY20 FY21 Q1FY21 Q4FY21 Q1FY22 Note:FiscalyearendingMar’31. A/E–AverageTotalAssets/AverageEquity. (1)DataforFY18isasperrestatedfinancialstatements (2) Equity raised in Q1FY22 is on account of ESOPs exercised 29 InvestorPresentation–Q1 FY22 ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Total Commitment For period ended Jun’21 Loans – Principal Outstanding 32,424.8 1,320.7 665.5 34,411.0 ECL Provision 131.9 153.5 174.3 8.3 467.9 Net Loans – Principal Outstanding 32,292.9 1,167.2 491.2 33,943.1 ECL Provision % 0.4% 11.6% 26.2% 1.4% For period ended Mar’21 Loans – Principal Outstanding 32,323.0 773.3 621.7 33,718.0 ECL Provision 121.0 108.4 223.6 9.5 462.5 Net Loans – Principal Outstanding 32,202.0 664.9 398.1 33,255.5 ECL Provision % 0.4% 14.0% 36.0% 1.4% ProvisionCoverageRatio For period ended Jun’20 70.3% Jun’21 Loans – Principal Outstanding 28,580.8 144.5 275.3 29,000.6 ECL Provision 213.9 21.0 72.0 9.2 316.1 Net Loans – Principal Outstanding 28,366.9 123.5 203.3 28,693.7 74.4% Mar’21 ECL Provision % 0.7% 14.5% 26.2% 1.1% 114.8% Jun’20 Loans having DPD 30-90 are classified as Stage 2 loans and Loans having DPD 90+ are classified as Stage 3 loans 30 InvestorPresentation–Q1 FY22 Quarterly and Annual Profit & Loss Statement Particulars (in ₹Mn) Q1FY22 Q4FY21 Q1FY21 QoQ YoY FY21 FY20 YoY Interest Income on 1081.5 1,030.5 1,012.4 4.9% 6.8% 4,026.0 3,425.0 17.5% term loans Net gain on DA 193.7 181.7 257.6 439.4 371.2 Income other than interest 145.0 143.1 72.2 426.3 400.6 income on term loans(1) Total Income 1420.2 1,355.3 1,342.2 4.8% 5.8% 4,891.7 4,196.8 16.6% Interest expense 526.9 534.5 538.0 2,165.8 1,912.2 13.3% Net Interest Income 554.6 496.0 474.4 11.8% 16.9% 1,860.2 1,512.8 23.0% Net Total Income 893.3 820.8 804.2 8.8% 11.1% 2,725.9 2,284.6 19.3% Operating Expenses(2) 286.6 312.2 232.0 1,064.0 1,046.2 PPOP 606.7 508.6 572.3 19.3% 6.0% 1,661.9 1,238.4 34.2% Credit Cost 130.4 83.5 44.6 321.5 165.0 Profit before tax 476.3 425.1 527.6 12.0% -9.7% 1,340.4 1,073.3 24.9% Tax expense 125.2 112.3 141.5 339.0 277.8 Profit after tax 351.1 312.8 386.1 12.2% -9.1% 1001.4 795.5 25.9% Basic EPS 4.0 3.6 4.9 12.4 10.8 Diluted EPS 3.9 3.6 4.8 12.2 10.6 (1)Income other than interest income on term loans includes interest on bank deposits, other interest income, fees and commission income, other operating income and other income (2) OperatingExpensesisthesumofEmployeeBenefitsExpenses,DepreciationandAmortization,Interestonleaseliability,BankchargesandotherExpensesfortherelevantyearorperiodasperthefinancialstatements. 32 InvestorPresentation–Q1 FY22 RoE Tree Particulars Q1 FY22 Q4 FY21 Q1 FY21 FY21 FY20 Interest Income on term loans / Average total assets 9.5% 9.7% 11.3% 10.1% 11.5% Net Gain on DA / Average total Assets 1.7% 1.7% 2.9% 1.1% 1.2% Income other than interest income on term loans/ Average total assets 1.3% 1.3% 0.8% 1.1% 1.4% Total Income / Average total assets 12.5% 12.7% 15.0% 12.3% 14.1% Interest on borrowings and debt securities / Average total assets 4.6% 5.0% 6.0% 5.4% 6.4% Net Interest Margin 4.9% 4.7% 5.3% 4.7% 5.1% Net Total Income / Average total assets 7.9% 7.7% 9.0% 6.9% 7.7% Operating Expenses / Average total assets 2.5% 2.9% 2.6% 2.7% 3.5% PPOP/ Average total assets 5.3% 4.8% 6.4% 4.2% 4.2% Credit Cost / Average total assets 1.1% 0.8% 0.5% 0.8% 0.6% Profit before tax / Average total assets 4.2% 4.0% 5.9% 3.4% 3.6% Tax expense / Average total assets 1.1% 1.1% 1.6% 0.8% 0.9% Profit after tax on average total assets (ROA) 3.1% 2.9% 4.3% 2.5% 2.7% Leverage (Average total assets / average Equity or average Net worth) 3.2 3.4 3.8 3.5 4.1 Profit after tax on average equity or average Net worth (ROE) 10.0% 10.1% 16.2% 8.7% 10.9% Average interest earning assets as % of average total assets 75.0% 77.8% 82.8% 80.3% 87.0% Average interest bearing liabilities as % of average total assets 67.5% 69.2% 71.7% 69.4% 74.1% InterestEarningAssetsrepresentsLoans–Principaloutstanding(Gross)fortherelevantyearorperiod.Interestbearingliabilitiesrepresentsborrowings(includingdebtsecurities)fortherelevantyearorperiod. 33 InvestorPresentation–Q1 FY22 Key Financial Ratios Particulars FY21 FY20 Q1 FY22 Q4 FY21 Q1 FY21 Profit after tax on average total assets (ROA) 3.1% 2.9% 4.3% 2.5% 2.7% Leverage (Average total assets / average Equity or average 3.2 3.4 3.8 3.5 4.1 Net worth) Profit after tax on average equity or average Net worth 10.0% 10.1% 16.2% 8.7% 10.9% (ROE) Cost to Income Ratio (Operating Expenses / Net Total 32.1% 38.0% 28.8% 39.0% 45.8% Income) Operating Expenses / Average total assets 2.5% 2.9% 2.6% 2.7% 3.5% Debt to equity ratio 2.2 2.2 2.7 2.2 2.7 CRAR (%) 56.4% 56.2% 46.9% 56.2% 49.0% CRAR - Tier I Capital 55.2% 55.2% 45.6% 55.2% 47.7% CRAR - Tier II Capital 1.1% 0.9% 1.3% 0.9% 1.3% 34 InvestorPresentation–Q1 FY22 Balance Sheet Particulars (in ₹Mn) Q1 FY22 FY21 Q1 FY21 ASSETS Cash & cash equivalents and Other bank 6,409.9 6,798.7 3,046.0 balance Loans 33,951.4 33,265.0 28,693.7 Investments 4,149.5 3,750.1 4,064.8 Other financial assets 1,004.9 1,011.7 919.4 Property, plant and Equipment 177.1 164.0 184.6 Non-financial assets other than PPE 87.5 112.1 79.4 TOTAL ASSETS 45,780.3 45,101.6 36,987.9 LIABILITIES & EQUITY Payables 2.4 4.1 3.9 Debt Securities 2,396.5 2,395.9 1,895.1 Borrowings 28,438.0 28,141.0 24,645.6 Other financial liabilities 545.8 534.8 451.3 Provisions 76.1 76.7 59.6 Deferred Tax Liabilities (Net) 116.4 79.6 105.6 Other non-financial liabilities 32.5 64.1 100.4 Equity 14,172.6 13,805.4 9,726.4 TOTAL LIABILITIES & EQUITY 45,780.3 45,101.6 36,987.9 Note: Balance sheets for period ended June 30, 2021 and period ended June 30, 2020 are unaudited 35 InvestorPresentation–Q1 FY22 Thank You For further information, please contact Company Investor Relations Advisors CIN: U65990MH2010PLC240703 Ms. Neha Shroff Mr.Manish Kayal, Head - Investor Relations +917738073466 manish.kayal@homefirstindia.com neha.shroff@linkintime.co.in Investor Relations - HomeFirst investor.relations@homefirstindia.com Glossary Terms Explanation Loans – Principal outstandingrepresents gross principal outstandingof loans as of the last day of the POS - Principal Outstanding relevant periodor year as per the restated financial statements. Net Interest Income representsinterest income on term loans minus Interest on borrowings and NII - NetInterest Income Interest on debt securities forthe relevant year or period NIMs - NetInterestMargin Net Interest Income / Averagetotal assets Assigned Assets represents the aggregate of current principal outstandingand overdue principal outstanding, if any, forall loanassets whichhave been transferred by the Company by way of DA - Direct Assignment / Assigned Assets assignment as of the last day of the relevant year or period. The Assigned Assets represent the directassignmentsand not passthrough certificate. Assets Under Management/Gross LoanAssets represents the aggregate of current principal AUM - Assets Under Management outstandingand overdue principal outstanding, if any, forall loanassets undermanagement which includes loanassets held by the Company as of the last day of the relevant year or period as well as loanassets which have been transferred by the Company by way of assignment and are outstanding as of the last day of the relevant year or period. DPD- Days PastDue Opexto Assets Operating Expenses / AverageTotalAssets Costto Income Operating Expenses / Net TotalIncome Gross Stage3 / POS % % Stage 3 loanassets / Loans - Principal Outstanding DPD 30+ represents sum of Stage 2 loanassets and Stage3 loan DPD30+ assets at the end of the relevant year or period as per financial statements as per ECL methodology under IndAS guidelines. 37 InvestorPresentation–Q1 FY22