Manappuram Finance Limited Roadshow Presentation November 2019 - PowerPoint PPT Presentation

Manappuram Finance Limited Roadshow Presentation November 2019 Gold Loans Microfinance Housing Finance Vehicle Finance

Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGHTS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31

Manappuram — overview Leading diversified NBFC in India Group structure • Incorporated in 1992, Manappuram is Non-Banking Financial Company (NBFC) Products Manappuram Finance offering a diversified product portfolio including gold loans, microfinance loans, Gold loans vehicle and equipment finance, home loan finance, on-lending and insurance Subsidiaries brokerage business 100% 93.33% • Currently has 4,491 1 branches across 22 states and 6 Union Territories. Loan assets of Manappuram Home Asirvad Microfinance c.US$3.2bn (INR226.7bn) (30 th Sep 2019). Employee count: 26,392 1 (30 th Sep 2019) Microfinance loans Finance Limited Limited • FY19 consolidated revenue from operations of US$583m (c.INR41.2bn) and consolidated profit for the year of US$131m (c.INR9.2bn), H1FY20 consolidated revenue from operations of US$348m (c.INR24.6bn) and consolidated profit for half Vehicle and equipment year of US$96m (c.INR6.8bn) finance loans 100% 99.81% • Gold loan under management of US$2.1bn (c.INR151.7bn) as of Sep 2019 with Manappuram Insurance Manappuram Comptech c.72 tonnes gold jewellery held as security for gold loans and 2.59m gold loans Broker Limited and Consultants Limited customer base Home loan finance, On- lending and others • Overall, gold loans and non-gold loans contributed c.67% and c.33% of the total AUM respectively as of Sep 30, 2019 Shareholding (30 th September 2019) Corporate governance Top 10 shareholders (other than promoters) % Independent Promoter Public Quinag Acquision (FPI) Ltd. 9.936 5/9 c.65% 1 director on the Promoters directors / total shareholding Baring India Private Equity 2 8.776 Board size Board 35.12% Barclays Merchant Bank (Singapore) Ltd. 3.709 Others Fidelity Investment Trust 3.150 64.88% DSP Small Cap Fund and DSP MIDCAP 2.286 Duro One Investment Limited 2.281 Big4 auditor — Private Equity L&T Mutual Fund Trustee Ltd. 1.329 2 Big4 Deloitte players on board Dolly Khanna 0.800 Emerging Markets Core Equity Portfolio 0.797 Dimensional Emerging Markets Value Fund 0.793 Source: Company information Note: Fx. INR/USD: 70.64 1 On consolidated basis 3 2. Includes Fund II and Fund III

Manappuram — Product segment overview Consolidated business AUM US$3,209m Gold loans Microfinance loans Vehicle and equipment finance Home loan finance On-lending and other loans US$2,147m US$668m US$187m US$81m US$127m % total AUM AUM % total AUM % total AUM AUM % total AUM AUM AUM % total AUM AUM 5000 81.46% 1200 20.79% 25% 5.16% 74.44% 90% 2.68% 350 19.75% 6.0% 300 5.81% 5.73% 7.00% 2.52% 3.0% 66.68% 66.91% 2.39% 80% 140 2.30% 4000 1000 300 20% 6.00% 3.96% 5.0% 15.45% 250 70% 2.5% 3.75% 120 187 668 3.98% 250 13.15% 800 60% 158 5.00% 81 4.0% 3000 200 100 2.0% 543 74 15% 2,147 200 142 50% 1,835 4.00% 80 127 600 1,661 53 3.0% 1,575 150 2.24% 1.5% 345 44 2000 40% 89 150 0.86% 10% 3.00% 84 60 255 30% 400 1.0% 100 2.0% 100 40 2.00% 43 1000 20% 5% 17 0.5% 200 50 20 1.0% 50 1.00% 10% 0 0 0.0% - 0 0% 0 0.0% 0% 0.00% FY17 FY18 FY19 H1 FY17 FY18 FY19 H1 FY17 FY18 FY19 H1 FY17 FY18 FY19 H1 FY17 FY18 FY19 H1 FY20 FY20 FY20 FY20 FY20 • • • • • Wide range of schemes to cater to Gives loans under subsidiary – Loans for new/preowned Home loans under subsidiary – On-lending to NBFC • diverse customer requirements Asirvad Microfinance Limited commercial vehicles Manappuram Home Finance SME/MSME business- Loans • • No end-use restriction on Three types of loans and refinancing Limited provided against property • gold loans – Focus on affordable housing Income Generating • Gold loans of up to c.US$923m loans for mid-income to Programme (IGP) loan (c.INR65bn) sourced through low-income groups – Product loan online channels (43%) – Small and Medium Enterprises • LTV linked to loan tenor (SME) loan • Average loan tenure of up to 3,464 28 24 months Branches States/UTs c.US$500 c.2.6m 1,027 23 c.2.0m (INR35.3k) Customer Branches States Customer Average loan base base ticket Note: Consolidated AUM includes securitized and direct assignment loan pool, FY17 is as per IGAAP and FY18, FY19 and H1FY20 are as per IndAS; Fx. INR/USD: 70.64 4

Manappuram — performance overview Strong financial performance with high return ratios Total AUM (US$m) 3,209 2,752 2,444 2,232 1,933 FY17 FY18 FY19 H1FY19 H1FY20 PAT (US$m) 131 107 96 96 60 FY17 FY18 FY19 H1FY29 H1FY20 ROE and ROA 28.1% 24.7% 22.1% 21.2% 18.9% 6.0% 4.9% 4.7% 5.4% 4.2% FY17 FY18 FY19 H1 H1 1 1 FY19 FY20 ROA % ROE % Note: Consolidated financials, FY17 is as per IGAAP and FY18, FY19 and H1FY20 are as per IndAS; Fx. INR/USD: 70.64 1. H1 FY19 and H1 FY20 ROE and ROA have been annualized 5

Key corporate milestones • Acquires 100% of Manappuram Insurance Brokers in 2016 • AUM grows to c.US$1.1bn (INR75bn) in 2011 and crosses over c.US$1.4bn (INR100bn) in 2012 • 4,491 consolidated branches, 4.7m live customers in 22 states • Branch Network reaches 2,908 in 2012 and 6 union territories as of Sep, 2019 • Pioneers introduction of shorter tenure loans (3 to 9 months) in June, 2014 • Diversifies into Home Loans and Commercial Vehicle finance in Sep, 2014 • Acquires Asirvad Microfinance in Feb, 2015 with AUM of c.US$42m (INR3bn) FY16-20 • Introduces online gold loans facility in 2015 FY11-15 2019: FY01-10 • IFC provided debt facility of c.US$75m (INR5.3bn) FY92-00 • NABARD provided debt funding of c.US$110m (INR7.7bn) • CRISIL upgraded the long-term • AUM crosses c.US$708m (INR50bn) in Dec, 2007 borrowing rating from CRISIL • Incorporated at Thrissur, Kerala in AA-/Positive to CRISIL AA 1992 • IPO in 1995 Note: Fx. INR/USD: 70.64 6

Agenda Section 1 MANAPPURAM OVERVIEW Page 5 Section 2 COMPETITIVE STRENGTHS Page 10 Section 3 BUSINESS SEGMENTS Page 24 Section 4 FINANCIAL OVERVIEW Page 31

Competitive strengths 1 Favourable industry dynamics underpin stability and sustainable growth potential 2 Retail focused NBFC, with collateral based lending 3 Well entrenched player in the gold loan NBFC market 4 Long business vintage with a business model that continues to diversify and adapt 5 Consistently strong financial performance and growth on the back of financial discipline 6 Access to wide range of funding sources and balanced ALM portfolio Robust gold appraisal & safety systems with structured employee training 7 8 Experienced management team backed by a competent board 8

1 Favourable industry dynamics underpin stability and sustainable growth potential — Gold loan Gold NBFCs would benefit with the continuing shift from unorganized to organized gold loan market Gold loan AUM Region-wise AUM split for gold loan NBFC (%) — FY19 45 20 40.7 West, 9% 40 35.5 32.8 15 14.6 35 31.1 30.3 30.2 30 East, 19% 10 (US$bn) 25 8.3 (%) 8.2 20 South, 52% 5 15 3.1 2.2 10 0 5 (2.7) North, 20% 0 (5) FY14 FY15 FY16 FY17 FY18 FY19 Gold loan AUM Growth % Market borrowing remain unaffected for gold loan NBFC's Growth drivers • Strong collateral, higher interest rate, lower cost, better return on 100 1 4 1 12 13 19 investment 80 51 • 54 Product diversification that compensates for lower off-take of auto, 2 51 54 60 43 home loans (%) 40 21 • Scope for cross-selling opportunities in future, including other 3 3 19 18 gold-based products 20 36 31 27 23 20 • Opportunity to capture under-penetrated, untapped markets 0 4 FY15 FY16 FY17 FY18 FY19 NCDs Commercial Paper (CP) Banks and Financial institutions Others Source: Crisil Research Note: Fx. INR/USD: 70.64 9