INDOSTAR CAPITAL FINANCE LIMITED Q4 & FY19 Results Update 20 - PowerPoint PPT Presentation

INDOSTAR CAPITAL FINANCE LIMITED Q4 & FY19 Results Update 20 May 2019

Disclaimer This presentation and the accompanying slides (the “Presentation”) have been prepared by IndoStar Capital Finance Limited (“IndoStar” or the “Company”) solely for information purposes and do not constitute an offer to sell or, recommendation or solicitation of an offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, advisors or representatives are under an obligation to update, revise or affirm. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or otherwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is hereby expressly disclaimed. Certain statements contained in this Presentation may be statements of the Company’s beliefs, plans and expectations about the future and other forward looking statements that are based on management’s current expectations or beliefs as well as a number of assumptions about the Company’s operations and factors beyond the Company’s control or third party sources and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation. Note : The figures for the previous period have been adjusted, wherever considered necessary to conform with the financial reporting requirements. 1

Q4 & FY19 performance : Key Highlights ▪ Retail AUM: ₹ 72,082 Mn [+343% YoY, +121% QoQ] Retailisation : 2020-21 Target ▪ Retail assets 61% of total AUM Already Achieved ▪ Distribution footprint doubles to 322 branches across 18 states ▪ VF & HF turn profitable in Q4 ;SME business already profitable; • All business segments are ▪ Q4FY19 Cost / Income: 37% [5.8% down YoY] profitable ▪ Q4FY19 PAT: ₹ 739 Mn [+83% YoY, +4% QoQ]; FY19 PAT: ₹ 2,407 Mn [+20% YoY] • Scale benefits kick in ▪ Q4FY19 ROA 2.8%; ROE 10% • Robust Asset quality ▪ GNPA: 0.7%, NNPA 0.5%; With IIFL GNPA: 2.6%; NNPA:1.7% ▪ CRAR 24% ; Tier 1 CRAR 21.7% Well-capitalised, Low Leverage offers headroom for growth ▪ Debt : Equity ratio 3x ▪ Cash equivalents and undrawn lines ₹ 18,839 Mn (21% of borrowings) Comfortable Liquidity position ▪ Positive ALM across all buckets 2 SME: SME Finance, VF: Vehicle Finance, HF: Housing Finance

Retail Strategy Acceleration - Acquisition of IIFL Vehicle Finance Business ✓ Profit accretive from day 1 ✓ 5x increase in Vehicle Finance AUM to ₹ 48 Bn ✓ Increases Vehicle Finance origination capacity to ₹ 4 Bn per month ✓ National footprint with 322 branches across 18 states ✓ Experienced manpower increasing to 2,052 people Transaction Summary IIFL IndoStar Combined Key Metrics Business Business Business • Effective from March 31, 2019 Total AUM (₹ Mn) 35,143 14,857 50,000 • Acquisition of VF AUM of ₹ 35.1 Bn, along with Branch Network 161 161 322 branch infrastructure, people & technology • Reasonable downside protection on credit costs Employee Base 1,079 973 2,052 • Net Purchase Consideration: ₹ 24.2 Bn, Goodwill ₹ Disbursement Capacity 2,500 1,500 4,000 3.0 Bn Per Month (₹ Mn) 3

National Footprint 322 branches across 18 states 322 * Some branches have multiple operating segments 159 155 305 129 91 142 39 136 114 75 10 55 55 46 5 11 15 40 31 10 10 10 10 10 10 10 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 SME Finance Housing Finance Vehicle Finance Retail Lending - Employee Base 2,490 1,545 1,485 1,373 1,031 474 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 4

Q4 & FY19: Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY19 Q3 FY19 QoQ % Q4 FY18 YOY % FY19 FY18 YoY % Revenue from Operations 3,411 3,212 6% 2,149 59% 12,210 7,910 54% Interest Expenses (1,639) (1,474) 11% (968) 69% (5,636) (3,255) 73% Net Revenue from Operations 1,772 1,737 2% 1,181 50% 6,574 4,654 41% People Costs 385 332 16% 318 21% 1,496 1,065 41% Operating Expenses 271 248 9% 188 44% 972 482 101% Profit before Credit Costs 1,116 1,157 -4% 675 65% 4,107 3,107 32% Credit Costs -73 48 -252% -21 255% 162 -38 -533% One off Charges - 15 n.a. 6 n.a. 154 20 686% Profit before Tax 1,190 1,094 9% 690 72% 3,790 3,125 21% Tax 450 382 18% 285 58% 1,383 1,121 23% Net Profit 739 713 4% 405 83% 2,407 2,004 20% Key Metrics Q4 FY19 Q3 FY19 Q4 FY18 FY19 FY18 Yield 12.9% 14.3% 13.4% 13.4% 13.9% Cost of Borrowings 9.7% 9.9% 8.9% 9.5% 9.2% & Spread 3.2% 4.4% 4.4% 3.9% 4.7% & NIM 6.7% 7.7% 7.4% 7.2% 8.2% Cost to Income 37.0% 33.4% 42.8% 37.5% 33.2% & Without IIFL NIM (Q4FY19) 7.5%, (FY19) 7.6%; Spread (Q4FY19) 4.8%, (FY19) 4.6% 5

Consolidated Balance Sheet Particulars (₹ Mn) Mar-19 Dec-18 QoQ % Mar-18 YoY % Equity 30,063 29,282 3% 20,747 45% Borrowings 89,357 62,223 44% 48,228 85% Others 706 384 84% 1,451 -51% Total Liabilities 120,126 91,889 31% 70,425 71% Loan Assets 102,222 76,508 34% 60,595 69% Treasury Assets 14,201 14,683 -3% 9,189 55% Fixed Assets # 3,704 698 430% 641 478% Total Assets 120,126 91,889 31% 70,425 71% Key Ratios Q4 FY19 Q3 FY19 Q4 FY18 ROAA & 2.8% 3.2% 2.5% * Leverage 3.6x 3.1x 3.1x * ROAE 10.0% 9.8% 7.9% # Fixed Assets (Mar- 2019) includes ₹ 3,002 Mn as Goodwill on IIFL acquisition & ROAA (without IIFL assets) for Q4FY19 3.1% 6 * Annualised