IIFL BONDS / NCDs Tranche II Issue PRESENTATION TITLE IN India - PowerPoint PPT Presentation

IIFL BONDS / NCDs Tranche II Issue PRESENTATION TITLE IN India Infoline Finance Ltd. ARIAL 24pt, BOLD, ALL- CAPS, MAX. 3 LINES Tranche II Issue Opens: 06.08.2019 Tranche II Issue Closes: 30.08.2019 DATE, VENUE, PRESENTER OR DEPARTMENT NAME WILL COME HERE. ARIAL 20, ALL-CAPS, REGULAR. MAX. 4 LINES The Tranche II Issue shall remain open for subscription on working days from 10 a.m. to 5 p.m. IST during the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board of Directors of our Company or the Finance Committee, thereof, subject to relevant approvals. In the event of an early closure or extension of the Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation on or before such earlier or initial date of Issue closure. On the Issue Closing Date, the Application Forms will be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended time as may be permitted by the Stock Exchanges.

Contents Slide reference 3 – 5 IIFL Finance Limited 7 – 24 About India Infoline Finance Limited 26 – 28 Issue Structure Investment Considerations 30 32 – 34 Annexures

IIFL - India’s leading integrated financial services group Vision Core values Fairness Integrity Transparency To be the most respected financial services in our transactions with all of the utmost nature, in letter, in in all our dealings with company in India stakeholders, bereft of fear or spirit, and in all our dealings stakeholders, media, investors, favour with people and the public Culture of the organisation driven by “Owner mindset” where Owners work and Workers own IIFL’s journey - Building an integrated platform around “retail” customers over two decades Beginning: Launched Launched Listing on Probity Research www.indiainfoline.com www.5paisa.com NSE & BSE 1995 1999 2000 2005 Investment by Investment by Launch of IIFL Private Building of strong Commencement of Carlyle Fairfax Wealth Management Institutional Equities team Lending Business 2006 2011 2010 2007 2008 Investment by Merrill Lynch Incorporation of IIFL Investments by Acquisition of Samasta MFI Asset Management CDC and General Atlantic Demerger of 5paisa Capital 2011 2016 2017 Today Regulated by multiple regulators across geographies - SEC, FSA, MAS, DFSA, RBI, SEBI, IRDA, NHB

IIFL Group Structure Simplified Structure – Three businesses to be separately listed Others include ESOPs  Promoters: 29.0% granted to employees and  Fairfax: 35.4% constituted 20% of equity (Publicly listed)  Others: 35.6% capital as at 31 Mar 2019 De-merged entity 84.5% De-merged entity CDC-15.4% Products Products Home loans, Business loans, Gold Products Retail and institutional broking, loans, Microfinance, Construction & Family office, AIFs, advisory and investment banking Real Estate finance, Capital Market distribution services finance Customers and network Catering to 10,000+ high networth 2.4 Mn customers serviced from Loan AUM families 1,400+ locations ₹ 349 Bn of largely retail diversified asset portfolio Financials FY19 Income: ₹ 26.0 Bn  Ongoing reorganization: PAT: ₹ 7.2 Bn  Will result in 3 independently run listed entities which will continue collaboration to exploit 100.0% synergies in sourcing and cross-sell opportunities  IIFL Holdings has been renamed to IIFL Finance  Post reorganization shareholding of IIFL Finance - Promoters: 23.5%, Fairfax: 28.7%, 98.4% CDC Group: 14.8%, Others: 33.0% 100.0% Clara Developers Pvt. Ltd. Note: Pursuant to the transfer of Merchant Banker registration, issued under the SEBI (Merchant Bankers) Regulations, 1992, from IIFL Holdings Limited (now known as IIFL Finance Limited) to IIFL Securities Limited, as approved by SEBI vide letter dated July 12, 2019 with continuance of registration number. Further IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.

IIFL Finance (i) interest to be confined mainly to financing business effective 30 May 2019  Promoters: 29.0%  Fairfax: 35.4%  Others: 35.6% (Publicly listed) 84.5% (ii) 100.0% 98.4% Products 1. Business loans 2. Gold loans 3. Developer and Construction Finance Products 4. Capital Market Financing Products 1. Home Loans 1. Microfinance 2. Business Loans (Loan against property) 3. Developer & Construction Finance Key metrics of IIFL Finance (consolidated) YE Mar 2019 ₹ 3,49 Bn AUM ₹ 25 Bn Operating revenue ₹ 7.9 Bn Total Comprehensive Income ₹ 21.40 EPS - Basic ₹ 43.7 Bn Networth including non-controlling interest ₹ 115.8 Book Value Per Share ROA (iii) 2.2% CAR (Tier 1/ Total ) (iii) 16.0% / 19.2% NNPA/Loan loss reserves (iii) 0.6%/139% Note: (i) Formerly named as IIFL Holdings Limited (ii) Clara Developers Private Limited, not forming part of core business of IIFL Finance, has been excluded

Contents Slide reference 3 – 5 IIFL Finance Limited 7 – 24 About India Infoline Finance Limited 26 – 28 Issue Structure Investment Considerations 30 32 – 34 Annexures

India Infoline Finance Limited Company snapshot ₹ 3,49,035 Mn (i) 85% Retail 1,947 16,779 Assets under Management 15% Wholesale Branches Employees 2.20% 15.94% / 19.18% 1.95% / 0.62% 18.11% 139% Return on Tier 1 / Total Capital Adequacy Gross NPAs / Net NPAs Return on Provision cover Assets Equity Unique advantages of IIFL Finance Granular and diversified asset portfolio leading to strong asset quality • Focus on small-ticket retail loans leading to low delinquencies • Loan book with a track record of consistent superior quality Vast physical network with a large presence in Tier-2 /Tier-3 locations • Large physical network providing brand visibility and connect with the customer • One-stop shop for financial products facilitating capture of maximum share of customer wallet Well-defined processes with a strong focus on Technology • Leveraged technology to streamline processes, reduce turnaround times and provide operating leverage • Data driven analytical models have helped manage delinquencies Access to diverse sources of funding and demonstrated support from existing marquee investors • Additionally, c.85% of portfolio is readily saleable to banks, providing ability to securitize and generate liquidity Note: All financials as on 31 Mar 2019 (for FY19) (i) Figures Rounded off to the nearest integer

Our Product portfolio Strategic focus on households: one stop shop to meet the financial services requirement for life AUM (₹ Mn) Target customers Unique features  Focused on affordable and non-metro housing segments  Salaried / Self-employed 1,21,924  Leverages underwriting skills developed over time individuals HOME LOANS CORE GROWTH  Medium, Small and  Predominantly lending to business owners backed by cash flows 81,159 * SEGMENTS Micro Enterprises and collateral BUSINESS LOANS  Small-ticket loans with very low delinquencies  Individuals  Competitive advantage over peers given the vast branch 61,951 network and segment experience GOLD LOAN  High-yielding granular portfolio dominated by Self Help Groups  Rural self-employed (SHGs) of women for income generating activities 22,852 women  Presence across 16 states MICROFINANCE  Lending to residential projects and developers with a focus on SYNERGISTIC  Developers 50,549 SEGMENTS affordable housing DEVELOPER & CONSTRUCTION FINANCE  Loan against shares and margin funding to the clients of IIFL  Individuals 6,599 Securities CAPITAL MARKETS FINANCING Core growth segments account for around 85% of assets under management Note: (i) Segment details as on 31 Mar 2019 Includes Medical equipment portfolio (c.₹ 4 Bn) that has been discontinued and is on run-down (ii)

Our Key competitive edge  Strong physical and digital footprint 1  Diversified product portfolio catering to a wide customer base 2  Strong asset quality with consistent low level of NPAs 3  Robust financial performance 4  Diversified funding sources and strong credit profile 5  Well-defined processes with a strong focus on Technology 6  Well established brand along with a strong and experienced management team 7

1. Vast physical network spread across the country - 1/2 c.85% of branches are in Tier 2 and Tier 3 locations Wide spread network across 25 states and over 600 locations Number of branches 1,947 1,161 191 Mar'11 Mar'15 Mar'19 Regional split of branches South North 35% 39% East West 15% 11%  Branches are strategically located in business districts in small towns/cities offering a significant opportunity for India Infoline Finance Limited to capture the credit market in these locations  Density of branches based on economic activity level and growth opportunity in respective states