Spandana Sphoorty Financial Limited .Committed to low -income - PowerPoint PPT Presentation

Spandana Sphoorty Financial Limited ….Committed to low -income households 16 Investor Presentation January 2020 Years

Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Spandana Sphoorty Financial Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections. 2

Performance Snapshot Key Operating Metrics 1 2 Key Financial Metrics Spandana at a Glance 3 4 Annexure Learnings from Industry Cycles 6 5 All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with effect from December 2018 3

Performance Snapshot Net Worth Largest Microfinance Company in terms of Profit Before Tax (PBT) No presence in Leverage (Rs. Crs.) Assam state 1.2x 2,505 2 nd Largest Microfinance Company in terms of Market Capitalization Marginal Cost of GNPA / NNPA Capital Adequacy Borrowing (Q3) 3 rd Largest Microfinance Company in India with an AUM of Rs. 5,879 crore, 0.33% / 0.04% 50.5% 9.6% 24+ lakh members and 980 branches AUM (Rs. Crs) Cost to Income Ratio RoA (%) +10 bps -210 bps 30.4% 9.0% 9.1% +40% 8.4% 8.3% 24.9% 22.8% 20.7% 5,879 4,372 4,204 FY18 FY19 Q3 FY19 Q3 FY20 FY18 FY19 Q3 FY19 Q3 FY20 3,166 Opex to AUM Ratio RoE (%) -30 bps 4.8% 28.9% 4.6% 4.3% 24.4% 4.0% 21.1% 21.1% Mar-18 Mar-19 Dec-18 Dec-19 FY18 FY19 Q3 FY19 Q3 FY20 FY18 FY19 Q3 FY19 Q3 FY20 4 Data as on 31 th December 2019

Q3FY20 – Key Performance Highlights Disbursement (Rs. Crs) No. of Borrowers (In lakhs) No. of Branches No. of Employees +63% +3% +7% +26% 1,971 24.6 980 7,545 23.8 913 6,000 1,209 Operating Metrics Q3FY19 Q3FY20 Dec-18 Dec-19 Dec-18 Dec-19 Dec-18 Dec-19 Total Income (Rs. Crs) Net Interest Income (Rs. Crs) NIM (%) PAT (Rs. Crs) +22% +43% +50 bps +40% 358 233 16.4% 130 15.9% 293 93 163 Financial Metrics Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 Q3FY19 Q3FY20 5

Performance Snapshot Key Operating Metrics 1 2 Key Financial Metrics Spandana at a Glance 3 4 Annexure Learnings from Industry Cycles 6 5 All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with effect from December 2018 6

Operational Summary AUM (Rs. Crs) Disbursements (Rs. Crs.) Borrowers (In lakhs) +40% +3% CAGR 5,681 CAGR 5,879 24.6 24.6 23.8 +55% CAGR +53% 4,969 +84% 4,372 4,204 3,858 15.9 3,166 10.6 2,059 1,297 FY17 FY18 FY19 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 No. of Branches No. of Loan Officers No. of Employees +7% +33% +26% CAGR 980 5,586 7,545 +33% 925 913 CAGR 6,655 CAGR 4,673 +48% 6,000 4,193 +53% 694 526 4,045 2,746 3,044 2,001 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 7

Rising Branch and Employee Productivity AUM/Borrower (Rs.) Borrowers/Branch (#) Borrowers/Loan Officer (#) Excl. Trainees Incl. Trainees +36% CAGR CAGR -4% +17% +21% 700 700 23,940 2,658 2,611 2,506 577 2,285 19,970 534 558 17,780 17,635 1,948 667 568 12,236 567 526 440 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 AUM/Branch (Rs. Crs) AUM/Employee (Rs. Crs) AUM/Loan Officer (Rs. Crs) Excl. Trainees Incl. Trainees Excl. Trainees Incl. Trainees +31% CAGR 0.92 6.0 1.34 +41% 1.33 0.86 1.24 0.81 1.23 0.80 4.7 4.6 4.6 1.05 0.78 0.78 1.00 1.15 0.70 2.4 0.66 0.44 0.69 0.94 0.43 0.65 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Mar-17 Mar-18 Mar-19 Dec-18 Dec-19 Over the last 9 months Company has invested significantly in manpower to build capacity for future growth 8

Diversified Geographical Presence Well dispersed district level exposure Top States By Branch Network Well spread AUM Mix ensures low impact from region-specific issues Top States Number of Branches Madhya Pradesh 154 District wise Concentration Orissa 145 < 0.5% 208 Karnataka 130 Maharashtra 121 0.5%-<=1% 52 Andhra Pradesh 102 Chhattisgarh 78 0.6% >1%-<=2% 16 3.5% 3.9% State-wise Concentration 4.5% >2% 0 2.7% 0.6% 17.5% 8.6% % to AUM Top States AUM Concentration 17.9% 12.3% Orissa 17.9% 0.5% ▪ Top 3 States constitute less than 49% of AUM Madhya Pradesh 17.5% 13.4% ▪ 0.5% No State has more than 18% of AUM 8.2% Karnataka 13.4% 0% Penetration ▪ No District has more than 1.6% of AUM Maharashtra 12.3% Low Spandana Penetration 0.1% High Spandana Penetration ▪ Chhattisgarh 8.6% No Branch has more than 0.3% of AUM 5.1% Andhra Pradesh 8.2% 9 Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Performance Snapshot Key Operating Metrics 1 2 Key Financial Metrics Spandana at a Glance 3 4 Annexure Learnings from Industry Cycles 6 5 All the data are on Consolidated basis Criss Financials Holdings Limited became subsidiary of Spandana Sphoorty Financial ltd. with effect from December 2018 10

Financial Performance for Q3 FY20 Total Income (Rs. Crs) Net Interest Income (Rs. Crs) Yield (%) Cost of Borrowings (%) +177% +182% -330 bps -690 bps -140 bps 1,049 623 29.5% 20.3% 26.2% 25.7% 25.4% -170 bps 24.0% 14.2% +43% 13.4% +22% 12.6% 588 341 10.9% 233 379 221 358 293 163 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 PAT (Rs. Crs) NIM (%) Cost to Income Ratio (%) ROA (%) +10bps +50 bps +584% -1,690 bps -82 bps +470 bps 17.6% 41.8% 9.1% 312 9.0% 16.8% 16.4% 8.4% 8.3% 15.9% 15.3% -210 bps 30.4% +40% 188 24.9% 22.8% 20.7% 130 3.6% 93 46 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 FY17 FY18 FY19 Q3 FY19 Q3 FY20 11