SHRIRAMCIT

Company Background − Market leader –differentiated position in large under-served retail markets 29582 30352 989 27582 711 − Strong parentage and an established track record in financial services 16717 558 253 − Strong business fundamentals with diversification-led growth Mar- Mar- Mar- Q1 Mar- Mar- Mar- Q1 − Healthy capitalization and balance Sheet with adequate liquidity 15 18 19 FY20 15 18 19 FY20 Assets Under Management Profit After Tax − Primarily caters to under-banked customers 22.62% − 966 branches with strong presence in rural and semi-urban markets 19.95% 12.85% 7.71% − Leading small enterprise finance company in India in the Small Loans segment − Leading two-wheeler financier in India Yield NIM Pre provision CRAR profits − Active customer base of 40 Lakhs. Strong base of 28254 employees 3.06% 3.44% 3.41% RoA Q1FY19 Q4FY19 Q1FY20 16.48% 16.04% 15.44% RoE Q1FY19 Q4FY19 Q1FY20 2 Performance Highlights for Q1 FY20 Key Financial Metrics Total Disbursements TotalAUM PAT INR Cr. INR Cr. INR Cr. 6410 6610 6275 29044 29582 30352 230 251 253 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 5.07% 2.10% 2.60% 4.50% 0.80% 10% QoQ YoY QoQ YoY QoQ YoY Disbursements INR Cr. Assets Under Management INR Cr. Product Q1FY19 Q4FY19 Q1FY20 Product Q1FY19 Q4FY19 Q1FY20 Small Enterprise Finance 2830 3001 2278 Small EnterpriseFinance 16565 17755 17920 TwoWheeler 1284 1319 1284 TwoWheeler 5270 5370 5480 Personal Loans 605 721 776 Personal Loans 2322 2562 2781 Auto Loan 195 203 146 Auto Loan 1438 1183 1116 Gold Loan 1495 1367 1790 Gold Loan 3450 2712 3055 Total 6410 6610 6275 Total 29044 29582 30352 3 Performance Highlights – AUM Q1FY19 Q1FY20 PERSONAALU TO LOAN PERSONALA UTO LOAN LOANS 5% LOANS 4% 9% 8% GOLD LOAN GOLD LOAN 10% 12% SMALL ENTERPRISE SMALL ENTERPRISE FINANCE FINANCE 57% 59% TWO TWO WHEELER WHEELER 18% 18% 4 Performance Highlights for Q1 FY20 Geographic Breakup of Business Branch Network by Geography AUM by Geography AUM in INR Cr. 966 branches as on 30-June-2019 30352 29582 29044 North 13% 59% 67% South 69% West 20% 67% South 32% 23% West 22% North 9% 10% 9% Q1FY19 Q4FY19 Q1FY20 5 Performance Highlights Income Statement under Ind-AS Growth Particulars Q1FY19 Q4FY19 Q1FY20 (INR in Crores) YoY QoQ Assets Under Management 29044 29582 30352 4.5% 2.6% Disbursements 6410 6610 6275 -2.1% -5.1% Income from Operations 1399 1437 1493 6.7% 3.9% Finance Cost 461 499 532 15.2% 6.5% Net Interest Income 938 938 962 2.6% 2.6% Personnel Expenses 205 215 209 2.1% -2.7% Operating Expenses (incldepreciation) 166 150 176 6.5% 17.6% Other Income 0 1 1 Pre Provisions Profits 568 574 577 1.6% 0.6% Provisions for NPA & StdAssets 44 9 18 -59.1% 100% Write offs 171 174 175 2.4% 0.8% Provisions & W88r.i8te% offs 215 183 193 -10.1% 5.6% Profit Before Tax 353 391 384 8.8% -1.7% Profit After Tax 230 251 253 10% 0.8% 6 Performance Highlights - under Ind-AS – Key Ratios & Other Information Analysis on Average AUM Q1FY19 Q4FY19 Q1FY20 Yield on Assets 19.78% 19.76% 19.95% Finance Expenses 6.52% 6.86% 7.10% Net Interest Margin 13.26% 12.90% 12.85% Personnel Expenses 2.89% 2.95% 2.79% Other Opex 2.34% 2.06% 2.35% Total Operating Expenses 5.23% 5.01% 5.14% Pre Provision Profits 8.03% 7.89% 7.71% Provisions for NPA, & Std Assets / ECL 0.62% 0.12% 0.24% Write offs 2.42% 2.39% 2.34% Provisions & Write offs 3.04% 2.51% 2.58% Net Spread (Pre Tax) 4.99% 5.37% 5.13% RoA 3.06% 3.44% 3.41% RoE 16.48% 16.04% 15.44% Leverage (times) 3.89 3.53 3.35 Net Owned Funds 5686 6391 6654 Cost to Income Ratio 39.49% 38.92% 40.02% Earnings perShare (Rs-for the Quarter) 34.60 38.08 38.36 Book Value per Share (Rs) 862 969 1005 CRAR Total(Asper IGAAP) 20.98% 23.12% 22.62% CRAR (Tier I) (Asper IGAAP) 20.30% 22.75% 22.58% 7 Stage Analysis as per Ind AS Rs. Crores Provisions Analysis as per IndAS Q1FY19 Q4FY19 Q1FY20 Stage 3 -Gross 2722 2577 2654 Stage 3 -ECL Provisions 1222 1124 1153 Stage 3 –Net 1500 1453 1501 Stage 3 -Coverage Ratio (%) 44.90% 43.61% 43.44% Stage 1 & 2 –Gross 26322 26339 27196 Stage 1 & 2 -ECL Provisions 613 803 791 Stage 1 & 2 –Net 25709 25536 26404 Stage 1 & 2 -ECL Provisions % 2.33% 3.05% 2.91% Stage 3 % -Gross 9.37% 8.91% 8.89% Stage 3 % -Net 5.16% 5.02% 5.03% 8 Analysis of stage 3 (as per IND AS) Stage 3 Gross % Stage 3 Net % Stage 3 ECL % Product Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Q1FY19 Q4FY19 Q1FY20 Small Enterprise Finance 10.14% 9.24% 9.33% 5.37% 5,14% 5,20% 47.10% 44.37% 44.28% Two Wheelers 10.46% 9.61% 9.37% 5.97% 5.25% 5.11% 42.93% 45.39% 45.43% Auto Loans 11.41% 11.63% 11.78% 5.90% 5.70% 5.75% 48.30% 50.99% 51.23% Personal Loans 11.53% 11.04% 11.28% 6.66% 6.46% 6.61% 42.26% 41.45% 41.42% Loan Against Gold 1.70% 2.34% 2.32% 1.65% 2.22% 2.21% 3.11% 4.89% 4.90% Total 9.37% 8.91% 8.89% 5.16% 5.02% 5.03% 44.90% 43.61% 43.44% 9 Diversified Borrowing Profile & adequate Liquidity Backup Source Q4FY19 Q1FY20 Total Borrowings (INR Cr.) 22571 22226 TermLoans (INR Cr.) 9864 9970 TermLoans (%) 43.70% 44.86% CC & WCDL (INR Cr.) 2349 2061 CC & WCDL (%) 10.41% 9.27% Retail (INR Cr.) 3696 3796 Retail (%) 16.38% 17.08% Inst. NCD& SD (INR Cr.) 3650 3641 Inst. NCD& SD (%) 16.17% 16.38% Public issueNCD (INR Cr.) 114 655 PublicIssue NCD (%) 0.50% 2.95% Commercial Papers (INR Cr.) 1786 1142 CommercialPapers (%) 7.91% 5.14% Others(INR Cr.) 1113 961 Others (%) 4.93% 4.32% FixedRate Borrowings (%) 43% 47% Semi FixedRate Borrowings (%) 52% 49% FloatingRate Borrowings (%) 5% 4% Average Cost of Borrowing (%) 9.40% 9.49% As of 30thJune 2019, the Company possessed Liquidity Backup to the extent of INR 1195 Crores in the form of undrawn lines and Current Account Balances. 10 ALM statement as of 30 June 2019 Rs. Crores ASSUMING 100% COLLECTION EFFICIENCY 1 to Over Over Over 2 Over 3 Over 6 Over 18 Over 24 30/31 one one Over 3 Over 4 months months months months months Over 5 Particulars days month year to years to years to Total to 3 to 6 to one to 24 to 36 years (one to 2 18 4 years 5 years months months year months months month) months months Liquidity Back Ups (Current Account & Fixed 226 226 deposits) Inflows from Assets (Assets) 2033 1615 1711 4902 8108 4758 3106 3395 2900 752 2950 36229 Outflows towards Scheduled Commitments 1205 440 1832 1996 4127 3453 3082 4209 1234 431 13 22022 (Borrowings) Mismatch 1055 1175 -121 2906 3982 1305 24 -814 1666 320 2937 14433 Cumulative Mismatch 1055 2229 2108 5014 8996 10300 10324 9510 11176 11496 14433 ASSUMING 90% COLLECTION EFFICIENCY 1 to Over Over Over 2 Over 3 Over 6 Over 18 Over 24 Over 3 Over 4 30/31 one one Over 5 months months months months months years to years to Particulars days month year to years Total to 3 to 6 to one to 24 to 36 4 years 5 years (one to 2 18 months months year months months month) months months Liquidity Back Ups (Current Account & Fixed 226 226 deposits) Inflows from Assets (Assets) 1830 1453 1540 4411 7298 4282 2795 3055 2610 676 2655 32606 Outflows towards Scheduled Commitments 1205 440 1832 1996 4127 3453 3082 4209 1234 431 13 22022 (Borrowings) Mismatch 851 1013 -292 2416 3171 829 -287 -1153 1376 245 2642 10810 Cumulative Mismatch 851 1865 1572 3988 7159 7988 7701 6547 7923 8168 10810 11 Product Summary 59% of 18% of 10% of 9% of 4% of AUM AUM AUM AUM AUM MSME Financing Two-Wheeler Financing Gold Loans Personal Loans Auto Loans • Launch Year: 2006 • Launch Year: 2002 • Launch Year: 2007 • Launch Year: 2002 • Launch Year: 2006 • Loans to micro, small and • Among the largest 2W • Focused on 5 leading • Cross sell product – • Primarily involves medium enterprises. financiers with 20% market gold demand states. Currently offered to Preowned cars, PVs & share 2W customers. 3Ws in South & West. • Strong Presence in • Offered through existing • Relationship based Andhra, Telangana, Tamil • Focus on non salaried class regional network. • Entirely based on data lending, offered to Nadu & Maharashtra. mining & analytics existing/past customers. • Tech –based lending • Ticket Size: 40 –50 K • Ticket Size: 10 –15 L • Ticket Size: 75K • Ticket Size: 1.25 –1.5 L • Ticket Size: 40 – 45 K • Tenor: 4– 6 months. • Tenor: 36 –60 months. • Tenor: 18 –36 months. • Tenor: 24 –48 months. • Tenor: 24 –30 months. • Yield Band: 14 –18% • Yield Band: 14 –22% • Yield Band: 22 –28% • Yield Band: 18 –24% • Yield Band: 21 – 26% • LTV: C. 75% • LTV: Cash Flow based • LTV: Cash Flow • LTV: 60 –80% Lending • LTV: C. 75% based Lending 12 Shriram Housing Finance Ltd Establishing a presence in Affordable Housing  Registered as non-deposit accepting HFC with the National Housing Bank  Predominantly catering to self-employed borrowers/ informal salaried customers in Tier-II / Tier-III towns  Focus on lower-income segment; average ticket size of INR 18.9 lakhs Housing:  Operates out of 70 branches across 17 states in India with 679 employees, catering to 10778 customers 5.99% of Consol  Rated ‘AA+’ by Care Ratings and ‘IndAA’ by India Ratings AUM Loan AUM Split As of Q1FY19 As of Q4FY19 As of Q1FY20 265 243 1847 233 1848 1933 2% 2% Construction 11% Construction Construction 9% Construction Construction 8% Construction 19% Finance Finance Finance Finance Finance Finance Retail 89% Retail 91% Retail 98% Retail 92% Retail 98% Retail 81% AUM Disbursements AUM Disbursements AUM Disbursements 14 Shriram Housing Finance Ltd Quarterly Financial Highlights Growth Particulars Q1FY19 Q4FY19 Q1FY20 (INR in Crores) YoY QoQ Assets Under Management 1847 1848 1933 4.67% 4.61% Disbursements 233 265 243 4.03% -8.34% Interest Income 65.53 62.85 68.75 4.92% 9.39% Other Income 6.94 8.55 9.69 39.69% 13.30% Income from Operations 72.46 71.40 78.44 8.25% 9.86% Interest Expenses 29.99 33.53 38.08 26.96% 13.57% Net Interest Income 42.47 37.87 40.36 -4.96% 6.58% PersonnelExpenses 15.17 14.81 13.71 -9.64% -7.40% OperatingExpenses & Others 12.57 13.58 10.41 -17.12% -23.33% Impairment of Fin.Instruments/Prov. & Write offs 4.60 -3.02 2.23 -51.49% NA Total Expenses 32.34 25.37 26.35 -18.50% 3.90% Profit Before Tax (Operational) 10.14 12.50 14.01 38.23% 12.04% Loss on accof one time extraord. items - - 4.80 88.8% Profit Before Tax 10.14 12.50 9.21 -9.13% -26.35% Profit After Tax & extraord. items 6.85 9.23 6.88 0.53% -25.39% 15 Shriram Housing Finance Ltd Quarterly Financial Highlights Analysis on Average AUM Q1FY19 Q4FY19 Q1FY20 Yield on Assets 15.96% 16.21% 16.49% Finance Expenses 8.03% 8.63% 8.91% Net Interest Margin 7.93% 7.59% 7.58% Cost to Income Ratio 65.31% 74.96% 59.77% GrossNPAs 6.61% 2.80% 2.86% Net NPAs 4.97% 2.19% 2.25% RoA 1.44% 1.84% 1.27% RoE 6.27% 8.23% 6.00% Leveraging (times) 3.35 3.67 3.72 Capital AdequacyRatio 31.93% 29.55% 29.43% Net worth (INR Cr.) 451.99 461.08 469.39 88.8% 16 Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Shriram City Union Finance Limited (the “Company”) and no part of it shall form the basis of or be relied upon in connection with any contract or 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 is not a complete description of the Company. Certain statements in the presentation contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. 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