Corporate Presentation FY19 Fullerton India Credit Company Limited - PowerPoint PPT Presentation

Corporate Presentation FY19 Fullerton India Credit Company Limited This report is solely for internal use. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Fullerton India Credit Company Limited.

A 100% Step-down Subsidiary of Temasek Holdings Part of a global financial services firm, focused in the region CHINA Central CHINA 230 Outlets 4 Provinces, 1,787k Customers 39 Outlets 27k Customers INDIA 626 Branches MYANMAR 3,382k Customers DUBAI, UAE 32 Branches 19 Branches 135k Customers 300k Customers CAMBODIA POST MALAYSIA BANK 88 Branches 45 Branches 1,111k Customers 195k Customers FFH has 7 operating financial services entities located across 6 countries Its vision is to develop unique business models that bring financial services to the underserved in emerging markets 2

FICCL History – Key milestones 2005 2009 2011 2014 2018/19 New Secured Products FICCL is incorporated as Entry into rural business. Portfolio reshape Accelerated secured launched a wholly-owned Managed economic and segmental shift to business, rural network AUM crossed INR 210 bn subsidiary of FFH downturn. mass affluent. Operations process revamp AAA rating from top 3 rating LAP, SME business agencies re-launched. In-sourcing of critical functions 2003 2006-08 2010 2012/13 2015-17 FFH, parent entity of Commercial Launch of Commercial Vehicle Capital infused for growth Capital Infused for growth. FICCL is incorporated as a NBFC operations. business launched. Rural network expanded. Home Fin business launched. Digital deployment. wholly-owned subsidiary of Pan-India presence Network consolidated. Funding diversified. Rural franchise expanded. Temasek Holding (P) Ltd established. Technology – core system revamped. FICCL:- Fullerton India Credit Company Limited, FFH:- Fullerton Financial Holding 3

Focused on a bankable, underserved segment Serving customers with limited access to formal banking channels Customer Segment Annual Household Income No. of Households Serviced By Foreign & Affluent 17 Mn (7%) > INR 1,100K Private Banks Aspirers Servicing the segment 40 Mn (15%) below the Foreign and INR 500K – 1,100K Private banks FICC Niche Addressable market of 140 Next Billion Mn households by 2025 – 121 Mn (47%) INR 150K – 500K 50% is underserved Strugglers MFI Lenders 82 Mn ( 32%) < INR 150K Microfinance FICC targets underserved segment not covered by large banks and MFIs 3.4 Mn live customers provide a large cross sell and upsell opportunity Source : Euro Monitor and BCG 4

A Well-diversified portfolio Multiple product, customer and geographic segments create durability Geographically diversified.. ..across multiple asset classes Rural Business Others - Urban East, 4.4% Loans, 21.4% Secured*, 0.3% West, 29.2% Loans against Property, 19.1% Rural Group Loans, 19.0% South, 41.2% Personal Loans - Business, Digital , 2.9% 11.3% Commercial Personal Loans North, 25.2% Vehicle Loans, - Salaried, 6.9% 19.2% Figures as of 31st Mar, 2019 * Others include TW, Loan against Securities & Developer Funding 5

Urban Business Serving wider customer segment through large product suite FICC Offering Client Segment End use Unique Business Value • Personal expenses • Personal Loans Consumer loans • Education • Two wheeler finance • Wide geographical spread Salaried individuals working • Consumption • Loan against securities • House hold expenses with government, public and • Wider network of associates • Medical exigencies private sector and direct selling agents • Marriage Income: INR 150 K (DSA) • Large suite of products • Business Expansion • Personal Loans Business Loans / MSME • Loan Against property • Working Capital gap • Trained sales staff Individuals (including • Asset purchase • Commercial vehicle finance professionals) driving income • Cyclical growth • Two wheeler finance • Customized product by way of business or • Business Logistics • Loan against securities offerings profession Income: INR 200 K • On ground credit assessment and due diligence • MSME (Business Installment • Business Expansion MSME / SME Loans • Door-step service • Working Capital gap Loans) Non-individuals engaged in • Loan Against property • Asset purchase business under a firm or a • Robust portfolio • Commercial vehicle finance • Cyclical growth company name • Two wheeler finance • Business Logistics management and cross-sell Income: INR 200 K • Loan against securities teams • Commercial Finance (DF) 6

Rural Business Serving wider customer segment through large product suite Client Segment Client Needs Unique Business Value FICC Offering • Purchase of cattle • Solidarity Group Loans Women’s Livelihood Groups • Purchase of stock/ machinery • Merchandise loans Self employed / Agri-allied • Business capital • Two wheeler loans • Home improvement livelihoods/ Rural livelihoods • Mortgage Loans • Purchase of merchandise (cattle Income: INR 160 K – 300 K • Consumer Durables feed / eco stoves / solar lamps) • Wide geographical spread • Trained staff for robust Small Enterprises / Rural Self • Business Expansion • Personal Loans credit assessment Employed • Capital Expense • Merchandise Loans • Last mile service/ door- Small manufacturing • Working Capital • Two wheeler loans step service (cash enterprises/ Individuals / • Home/ shop Renovation • Mortgage Loans collection at door-step) wholesalers/ dairies • Local Transportation • Consumer Durables • Client relationships across /transporters the consumer life cycle -Turnover INR 160K – 3 Mio • Children Marriage expenses / • Personal Loans Salaried Class • Merchandise Loans Education Employed in Pvt. Ltd. company / • Two Wheeler Loans • Purchase of House / Home proprietorship / govt. school / • Mortgage Loans Improvement hospital • Consumer Durables • Purchase of TW 7

Including a strong multiproduct rural franchise Providing solutions across customer life cycle Comprehensive product suite with insurance throughout Catchment model enables customer the life cycle serves customer growth and aspiration intimacy and superior service quality  Housing Loan /MSME  Consumer  Loans against  General property durables Enterprise Branch Loans  Group  Two Catchment Loans wheeler upto 35 km loans radius Micro- Consumption, Aspirational Livelihood enterprise, Small business Needs consumption 8

Digital Business Catering to multiple segments in a faster & hassle-free manner ❶ Direct to customer with a ❷ Integrated financial provider ❸ E-aggregators as distributor differentiated brand within 3rd party platforms arm Alternate & Robotic Traditional Lending Transaction Data advisory Daily Touchpoints Anchor- Distribution Data gathering Risk taking E2E Digital based Journey Financing needs Lending Customers solutions Financial E-aggregator sourced lending Fintech Partner services stack Value-adds Data gathering Risk taking Distribution Non-Financial Value -adds FICC Customers E-aggregators  Customer acquisition and profiling done by  Participate in sustainable partnerships for  Acquire & own customers through digital e-aggregators customer acquisition platform  Qualified, warmed leads pushed to FICC for  Maximize customer lifetime value (CLV)  Develop insights into use of (partnership underwriting & disbursal specific) alternate data  Product Offering: Personal loans for Salaried  Product Offering: Personal loans for Salaried  Product Offering: Personal loans for Salaried & Self-employed, Short-term personal loans & Self-employed & Self-employed, Short-term Personal Loan, Pay-day loan, Over-draft facility, 9

Well-diversified, conservative funding book AAA  Basel III oriented, Board approved policies guide liability management  Rigorous monitoring via ALCO  Compliance oversight by independent verticals AAA  Three pillars of conservative liquidity risk management:  Diversification (across instruments lender category)  Matching asset-liability tenors AAA  Maintenance of adequate buffers Stable Funding profile Diversification (nos) (INR bio) 10 190 13 22 12 9 11 15 136 110 10 18 102 16 23 28 5 91 25 15 11 78 11 59 9 36 49 24 42 35 35 31 32 67 55 52 45 45 Mar 15 Mar 16 Mar 17 Mar 18 Mar-19 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Bank loans NCD CP Masala Bond Banks Insurance Cos Mutual Funds Long term stable and diversified funding base, with adequate liquidity cover 10 Regulatory requirement is to keep liquidity buffer for 85% of 1 month outflow