Corporate Presentation Jan January ry 2019 2019 A leading - PowerPoint PPT Presentation

Corporate Presentation Jan January ry 2019 2019 A leading Financial Services Conglomerate Aditya Birla Capital Limited

Table of contents 1 | Overview Pg. 3 - 7 2 | Business-wise Performance Pg. 8 - 41 3 | Aggregate Financials Pg. 42 - 45 4 | Annexures Pg. 46 - 50 NOTE 1: The financials of Aditya Birla Capital are consolidated financials prepared as per Indian GAAP for periods up to FY18. NOTE 2: ABCL has adopted Ind AS effective from 1 st April 2018. The financials for the H1 FY19 and H1 FY18 are Ind AS compliant NOTE 3: The financial figures in this presentation have been rounded off to the nearest Rs 1 Crore 2

Integrated financial services platform Solutions across the customer lifecycle Comprehensive Money Solutions PROTECTING INVESTING FINANCING ADVISING f or Individuals and Businesses 800+ 400+ 200,000+ 340+ Pan India presence 1 Branches Cities Agents & channel partners Banks & national distributors Rs. 1,000+ Crore Consol PAT 3    10 Mn+ active customers 1 Rs. 300,000+ Crore AUM 1,4 AAA Rated 2 ; One of the lowest Among Top 5 Fund Managers    Trusted Aditya Birla brand cost of borrowings in Industry in the country 3 3 Note: 4. Includes AUM of Life Insurance, Health Insurance, Private Equity and quarterly average AUM of Asset Management Business As on Sep. 30 th 2018 1. 2. NBFC, HFC is AAA rated by ICRA, India Ratings and Research 3. For FY18, before minority interest

Our approach Leveraging Market Opportunities Product Increasing Reach Innovation and Performance Capturing Balanced and Leveraging Customer Life Profitable Synergies Time Value Growth Strengthening Enablers - Risk, Retailisation Technology and Analytics 4

Established track record Creating businesses with scale and market leadership Established businesses with market leadership Emerging businesses Asset Management NBFC Life Insurance Housing Finance Health Insurance Established in 1994 Established in 1991 Established in 2001 Established in 2014 Established in 2016 One of the fastest growing Amongst Top 3 AMCs by Amongst Top 5 Private Amongst Top 7 private life One of the fastest growing housing finance cos. in AAUM market share 1 Diversified NBFCs in India insurance Cos. in India 2 health insurers in India India AAuM (Rs. Crore) 3 Lending Book (Rs. Crore) Ind FYP (Rs. Crore) Lending Book (Rs. Crore) GWP (Rs. Crore) CAGR: 7% CAGR: 39% 4.1x 8,137 4.5x 244 43,242 1,152 CAGR: 29% 267,739 879 96,429 11,735 1,973 54 FY14 FY18 FY14 FY18 FY14 FY18 FY16 FY18 FY17 FY18 5 Note: 1. Based on quarterly domestic AAUM for Q2 FY19 (Source: AMFI) 2. Rank amongst players (ex.- LIC) based on individual FYP (Source: IRDAI) 3. Q4 Quarterly AAUM for the respective financial year

Delivering strong financial performance (1/2) Figures in Rs. Crore P R O T E C T I N G I N V E S T I N G F I N A N C I N G 34% 11% 30% 2,862 271,556 57,945 2,130 244,609 44,675 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 AAUM 2 Lending Book 3 Premium 1 1 | 60% Ind. APE growth in Life Insurance, 1 | Equity AAUM crosses Rs. 100,000 Crore in 1 | NBFC PBT grew 29% with ROE expansion AMC (grew 29% y-o-y) of 36 bps 6 on a diversified book higher than Industry growth at 10% 2 | Gross VNB Margin 4 at 36.4% in Life 2 | SIP share of Domestic Equity AUM at 29% 2 | HFC lending book grew 2x with focus on Insurance; EV grew 10% y-o-y retail granularity 3 | Operating EBT increased by 37% 5 3 | Retail GWP crossed ~ Rs. 100 Crore; Retail 3 | JV with Varde Partners to grow ARC mix in Health Insurance GWP at 61% Financials prepared for periods up to FY18 are as per Indian GAAP. ABCL has adopted Ind AS effective from 1 st April 2018. The financials for the H1 FY19 and H1 FY18 are Ind AS compliant. 6 Note: 5. EBT excluding other income 3. Includes lending book of NBFC and Housing Finance Businesses 1. Includes Life Insurance and Health Insurance gross total premium 6. NBFC RoE for YTD September based on computed monthly average 4. For individual business based on management estimates 2. Includes Quarterly AAUM of Asset Management Business

Delivering strong financial performance (2/2) Figures in Rs. Crore PBT for Established Businesses grew by Consolidated Revenue 𝟑 37% y-o-y 1 21% Emerging Businesses on a steady path to 13,428 32% 11,071 achieving scale and profitability 7,374  5,596 HFC delivering strong growth in profits  Health insurance at peak quarterly loss in Q2 FY19 and expected to break-even in ~3 years FY17 FY18 H1 FY18 H1 FY19 Profitability in H1 FY19 impacted by: Growth H1 FY18 H1 FY19 FY17 4 FY18 Profit Before Tax  Change in Fair Value of investments due to market conditions Established 1,298 1,773 37% 845 1,000  Life Insurance profit ex fair value changes Businesses 3 impacted mainly on account of investment in Profit After Tax HDFC banca ramp-up (After Minority Interest)  Brand and interest expenses incurred at ABCL Consolidated 573 824 44% 397 411 standalone Financials prepared for periods up to FY18 are as per Indian GAAP. ABCL has adopted Ind AS effective from 1 st April 2018. The financials for the H1 FY19 and H1 FY18 are Ind AS compliant. 7 Note: 4. ABNL transferred its 51% stake in Aditya Birla Sun Life Insurance (ABSLI) to ABCL 1. For FY18 w.e.f 23rd March 2017. Previous year financials have been re-stated including 2. Asset Management and Wellness businesses consolidated based on equity accounting under Ind AS, however included in revenue to show holistic financial performance 3. Includes EBT of NBFC, Asset Management and Life Insurance businesses, earnings of ABSLI to make performance comparable

Aditya Birla Finance Limited 8

A well diversified portfolio with value accretive growth Figures in Rs. Crore Amongst Top 5 Private Diversified NBFCs 24% 48,061 CAGR 33% Mid + Large 43,242 + Others 38,898 34,703 Balanced loan book growth with focus Strong 25,755 growth in on higher margin segments 17,588 SME + Retail lending + HNI Lending Book grew at 33% CAGR 1 book 42% 49% High margin Retail+SME+HNI Mix at 49% 2 FY15 FY16 FY17 FY18 H1 FY18 H1 FY19 Unsecured Retail Lending business turned profitable CAGR 41% 1,885 in <2 years of operations Net 22% 1,092 1,350 Interest 943 894 NII grew at 41% CAGR 1 674 Income (NII) Improvement driven by change in product mix and FY15 FY16 FY17 FY18 H1 FY18 H1 FY19 ability to pass on interest cost RoE RoA 15.4% 14.6% 14.2% 14.2% 14.3% 13.9% Generating healthy shareholder returns Generating healthy RoE at 14.3% 3 and RoA at 1.9% 3 2.0% 2.1% 1.9% 1.9% 1.8% 1.9% returns 3,4 EBT CAGR of 39% 1 FY15 FY16 FY17 FY18 H1 FY18 H1 FY19 Financials prepared for periods up to FY18 are as per Indian GAAP. ABCL has adopted Ind AS effective from 1 st April 2018. The financials for the H1 FY19 and H1 FY18 are Ind AS compliant. 9 Note: 3. RoE and RoA are based on compounded monthly average 1. CAGR over FY15-FY18 4. FY17, excluding tax benefit of wealth division merger 2. As of Sep 30, 2018

Multi-product portfolio catering to a range of customer needs Retail (12% of Loan Book) 1 SME (27% of Loan Book) 1 3% 4% 6% 10% 16% 20% 12% 14% TL/ WCDL 11% 19% LAP 25% 24% 52% LAP 25% 44% LRD Unsecured and Digital 25% 27% 24% 61% Supply Chain Finance LAS 41% 38% 33% 35% 31% Broker Funding FY17 FY18 H1 FY19 FY17 FY18 H1 FY19 HNI + Others (12% of Loan Book) 1 Large & Mid Corporate (49% of Loan Book) 1 8% 12% 12% 13% 21% 27% 19% 17% 19% TL/ WCDL 26% 29% Project Loan 29% LAS 87% 79% 73% Structured Finance Treasury 47% 42% 39% Construction Finance FY17 FY18 H1 FY19 FY17 FY18 H1 FY19 10 Note: As of Sep 30, 2018 1.

Strong focus on quality of book Figures in Rs. Crore Delivered consistent loan book growth High quality corporate book with 48,061 median internal rating of “A” 1 CAGR 33% Diversified loan book with Average 43,242 34,703 Ticket Size (ATS) of Rs. 40 Lakh 3 25,755 60%+ exposure to borrowers with credit 17,588 rating “A” and above | ATS: c. 70 Crore 3 FY15 FY16 FY17 FY18 H1 FY19 Construction finance exposure to While maintaining strong asset quality 2 LAP Segment – 11% of overall book only Cat A/B developers Gross NPA NNPA% LTV 50% 3 ATS: Rs. 49 Crore 3 0.32% 0.22% 0.21% 0.65% 0.40% 0.93% 0.92% 0.90% 0.63% 0.47% Secured loan book more than 80% 3 Primarily focussed on cash flow based FY15 FY16 FY17 FY18 H1 FY19 underwriting 180 DPD 150 DPD 120 DPD 90 DPD 90 DPD Financials prepared for periods up to FY18 are as per Indian GAAP. ABCL has adopted Ind AS effective from 1 st April 2018. The financials for the H1 FY19 and H1 FY18 are Ind AS compliant. Note: 11 1. Internal rating is for exposures more than Rs. 7.5 Crore 2. GNPA and NNPA basis IGAAP for FY15 to FY18. Based on Ind AS for H1 FY19 3. As of H1 FY19