Choice International Limited · NSE:CHOICEIN
Choice International — Q3 FY24 Earnings Presentation
46 slides from Choice International's earnings presentation, Jan 15, 2024
Slide 1: Cover letter to stock exchanges
Choice The Joy of Earning REF: CIL/CC/86/2023-24 January 15, 2024 To, To, The Department of Corporate Services, The Department of Corporate Services, The BSE Limited, The NSE Limited P.J. Towers, g Floor, Exchange Plaza Dalal Street, Plot No. C/ 1, G Block, Mumbai- 400 001 Bandra — Kurla Complex, Ba
Slide 2: Connecting People to Prosperity - Q3 & 9M FY24 Earnings Presentation
Choice The Joy of Earning Connecting PEOPLE to PROSPERITY l‘l‘l‘l‘! Choice International Ltd. (BSE: 531358, NSE: CHOICEIN) Q3 & 9M FY24 Earnings Presentation —R Choice International Ltd
Slide 3: Company Overview
Choice The Joy of Earning Company Overview One of the leading financial conglomerates with over a decade’s expertise providing tech-led services () ) () 9 () Ranked 5th amongst MSME focused lending PAN India Presence top full service business with tech-led broking firms in India robust underwriting
Slide 4: Key Highlights
Choice The Joy of Earning Key Highlights A diversified mix for sustainable business Broking & Distribution stock Broking, Mutual Funds . NBFC 4 26% v 25% 4 45% A 404% 807K 197K+ eeee..cf omll o o 0 AL omo Rs.468Bn | Rs. 2680 Mn Demat Accounts Active Accounts Total Loan Book Retail Loan Book REVENUE
Slide 5: Q3 FY24 Highlights
Choice The Joy of Earning Q3 FY24 Highlights Revenue (Rs. Mn) I I EBITDA (Rs. Mn) I I A 163% A 3% 692 ] 516 2,098 7 376 263 I | n Q3FY23 Q4 FY23 i1 QIFY24 Q2FY24 Q3FY24 1395 1393 | PAT (Rs. Mn) | A 190% 403 299 Q3FY23 Q4 FY23 QIFY24 Q2FY24 Q3FY24 . I ] I Q3FY23 Q4FY23 QIFY24 Q2FY24 Q3 FY24 Figures i
Slide 6: 9M FY24 Highlights
9M FY24 Highlights I Revenue (Rs. Mn) EBITDA (Rs. Mn) 11 PAT (Rs. Mn) A% A 158% 4207% 5429 1584 915 2556 613 298 9M FY23 9M FY24 IM FY23 OM FY24 IM FY23 OM FY24 *Figures indicate YoY Increase
Slide 7: Q3 FY24 Highlights - Segment Revenue and PBT
Choice The Joy of Earning Q3 FY24 Highlights I Segment Revenue (Rs. Mn) I I Segment PBT (Rs. Mn) 24 281 Q3FY23 Q4FY23 QIFY24 Q2Fy24 Q3FY24 m Broking Services = Advisory Services m NBFC Services Excludes: Excludes: - Unallocable revenue: Q2 FY24 - 43, Q3 FY24 - 44 - Other Unallocable expenditure net
Slide 8: Stock Broking - Industry Overview
Choice The Joy of Earning Stock Broking - Industry Overview I ADTO (Rs. Lacs Crores) I Q3FY24 383 Growing Industry Q2FY24 ADTO with increasing share QIFY24 from semi-urban FY23 geographies and FY22 steady growth of Fy21 retail participation Tightened regulations " Beneficial for Choice, being indust
Slide 9: Stock Broking
Choice The Joy of Earning Stock Broking Expanding our PAN India reach and client demographic I Increased penetration in unserved & I I Steadily increasing client base underserved locations 1 Geographical Disfribufion A141% of Clients W Terl A26% W Terll 807 M Terll & Below 768 721 640 S40 Maijority
Slide 10: Stock Broking
Choice The Joy of Earning Stock Broking Expanding our PAN India reach and client demographic Rank amongst full service Consistently growing Broking & Distribution Segment Revenue broking firms* I Market Share & ADTO (Rs. Mn) (Rs. Mn) has peaked 136% 130% A92% 119% 105% 860186 9695.88 1239 910680 121
Slide 11: Stock Broking - Choice FinX Super App
Choice The Joy of Earning Stock Broking Expanding our PAN India reach and client demographic Choice FinX One Customer, One Platform - Financial Services Super App S05PMm & NIFTY BANKNIFTY FINNETY 1081875 1m0 4452065105 19.92165%50 Hi Pritam ® 4 Q @ In-app Curated Baskets % Diverse Investment Product
Slide 12: Stock Broking
Choice The Joy of Earning Stock Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products @ o User Behavior-Driven Client Engagement: ..... B3 Ittt We focused on enhancing client engagement through user behavior analysis. Leveraging insights, we have 46 Million+ se
Slide 13: Tech Insights
Choice The Joy of Earning Tech Insights Seamless collaborations, Cutting-edge features | Front | ) | Middle Layer | ) | Back End | End (Custom Interface Layer) Systems Usage of Middle Layer: ‘ Back-office - GTT « Charts - Orders « Reports - MIS Benefits of Middle layer: + No need to reinvent the Lo
Slide 14: Stock Broking
Choice The Joy of Earning Stock Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products (FErE= ¢ seneex © v Qq Insurance < Plan my investments 6650545 6652500 1955 Monthly SIP Amount Expert Advisor Just a 1914260 b Build Scalping Strategy based on Spot, Future an
Slide 15: Stock Broking - Allied Products
Choice The Joy of Earning Stock Broking - Allied Products Maximizing growth of portfolio with a mix of products I Sustained Growth in Mutual Fund AUM I I Progressive increase in SIP Book I A 34% A55% 2 4864 59 5 3630 3635 4054 43682 2 ) I I ] i I Q3FY23 Q4FY23 QIFY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 QIFY
Slide 16: Stock Broking - Allied Products
Choice The Joy of Earning Stock Broking - Allied Products Maximizing growth of portfolio with a mix of products I N I Folios expanded as investor participation surged I I Promising upward trend in clients I Key Technology upgradations A25% ] A33% 35 320 90 93 302 = 84 256 264 70 Implemented SIP Trac
Slide 17: Insurance - Industry Overview
Choice The Joy of Earning Insurance - Industry Overview I Insurance Density (USS) I 8565 . Long Term Goal ® Premium per capita - India :;surq'nC_e Premium 'ensity v IS InCreasin 9 = World Average driven by Insurance 874 Brokers contribution Medium Term yet a long way to Goal go compared to 9l Global
Slide 18: Insurance - Industry Overview
10ice The Joy of Earning Insurance - Industry Overview Key Growth Factors in the sector Myriad of Initiatives IRDAI has also undertaken various initiatives towards boosting the insurance penetration, such as permitting insurers to conduct video-based KYC, launching standardized insurance products an
Slide 19: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients I Exponential Growth in Insurance Premium I I Enroute Mass Coverage I s 75K+ Covered A 433%% A T74% 492 = 10378 . o | Settlement S 8,755 >95 /° Ratio 338 8,008 6978 8 Lead 200 70% Con
Slide 20: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients I Significant boost in employee productivity I -I o o . :::gsg;ce 377 ;]%Li?;gge in Policies placed O generated v EE [ -/ Key Highlights Q2FY24 _ 540 - During the quc:ljter, we focuss
Slide 21: NBFC - Industry Overview
NBFC - Industry Overview I Banks Vs NBFCs - YoY growth in Advances I NBFCs showing strong out-performance Banks despite multiple regulatory and economic changes @ ——— 1Global Financial } 3 e . ——— H e- Global 334 Crisis economy 4 ! downturn; 30 \ E ; 27% Ukraine War & :] H1 20 H / | 4 i | 17% 10 iE
Slide 22: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Total Loan Book I I Retail Loan Book PN Rs. 4,684 Mn Rs. 2,680 Mn 10 riority Sector Lending (PSL) in Retail 100% Digital Documentation Our Offerings Low-cost
Slide 23: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Growing Net Interest Margin I I Focused Retail Portfolio Mix I A Expanded by 310 bps Rs. 2.680 Mn o, 5.08% 1057% 10.04% 437% 992% 1532% 813% 694% 2692% I 483
Slide 24: NBFC - Robust Underwriting Processes
Choice The Joy of Earning NBFC Robust Underwriting Processes ~ Real-time Credit Multiple Centralized Geo-tagging Cashless Bureau checks Database Checks Credit Team Operations In addition to Dedupe Check on KYC verification, IVR, of 100% branches via penny drop own Credit Bureau more than 15 TVR, ens
Slide 25: NBFC - Product Offering
Choice The Joy of Earning NBFC Wide range of product offering to cater multiple customer segments in priority sector Products Name Business Loans Business Loans Supply Chain Vehicle Loans Solar Loan (Unsecured) (Secured) Finance Ticket Size Upto Rs. 750K Upto Rs. 5 Mn Upto Rs. 10 Mn Upto Rs. 25 Mn U
Slide 26: NBFC Retail Loan Book Profile
High School (Upto 12th) Below 25 . o) — ¥ Graduate 251035 Post Graduate B 361050 62% = professional 48% % of Loans advanced % of Loan Portfolio Retail Loan Book Rooftop Solar . (CA. CS, MBA, o Above 50 towards MSMEs & Iess than Rs. 1Mn Tier -Vl cities Finance 26% Dr. efc) 38% Green Energy >
Slide 27: Advisory Services - Industry Overview
Advisory Services - Industry Overview 66 . ~ Infrastructure is much more than I Readiconstiuctionlpegdavi(Kims} I cement and concrete. Infrastructure guarantees a better SYEEY future. Infrastructure connects 7 30 28 people. = 23 2 Shri. Narendra Modi Hon'’ble Prime Minister of India FYI5 FYl6 FYI7 F
Slide 28: Advisory Services
Choice The Joy of Earning Advisory Services Government Infrastructure Consulting, Government Advisory, Investment Banking I Order Book (Rs. Bn) I Statewise - Order Book I o 4 80% 5% B Maharashtra 4% - I Rajasthan W Bihar % W West Bengal W Others* *Chhattisgarh 344 Delhi o, Goa 54% Jharkhand Madhya P
Slide 29: Advisory Services
Choice The Joy of Earning Advisory Services o o Association with over 500 Urban Local Bodies, 25 State Departments and 10,000+ Panchayati Raj institutions. National Family Health Survey VI: In-depth Public Health Survey - 26K+ households, across 13K villages in the Chhattisgarh, crucial fo decide he
Slide 30: Choice Matters: Impacting Tomorrow
Choice The Joy of Earning Choice Matters: Impacting Tomorrow Proprietary platform for real time monitoring and to ensure timely completion of projects 25126 [l | 3 States 100+ Districts 350+ Talukas 20K+ schemes TOMn+ Households 55Mn+ Beneficiaries Impact of our Flagship Projects
Slide 31: Key Initiatives
Choice The Joy of Earning Key Initiatives: Partnership with Rajasthan System Integration for computerization of PACS in Bihar, Advantages of PACS computerization State Govt.: Maharashtra, Haryana &Tamil Nadu: Developing and executing a With our commitment to driving . comprehensive strategy to bolst
Slide 32: Advisory Services - Key Clientele
Choice The Joyof Earning Advisory Services - Key Clientele . Niti Aayog L AR smmamcnown | ICICI Securities IndianOil RN DAL A T 7 ‘&%m b JaE = 42’?& VA @ oot = w=fie E(‘ClT_ ADITYA BIRLA GROUP Bies | @ | Rreow WG | GENEG | eme g, &@% 2 P%A ZHGIEL — & O ¢ |. _— O | B#n L i |2l 0 | X SERe e-Zest |T e
Slide 33: Choice Connect
Choice The Joy of Earning Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services I No. of Choice Business Associates (CBAs) I EBAdTrctiniggS CBAs onducte : 75 + during the 7.5 K+ Lecelved A 34x
Slide 34: Choice Connect
Choice The Joy of Earning Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services Helping Agents Focus on CBA Experience - Web, Andriod and iOS platform CBA Onboarding & to work from anywhere .
Slide 35: Way Forward
Choice The Joy of Earning Way Forward Focus on MSME Lending Lending platform with average ticket size of <RsIMn Newer demographies Targeting Tier lll & below cities in India by leveraging our CBA network & scaling our branches Elevating Advisory Services Portfolio Amplify the expanse of our advisory
Slide 36: Consolidated Financial Performance - Quarterly
Choice The Joy of Earning Consolidated Financial Performance - Quarterly Particulars (Rs. Lakhs) Q3FY24 Q3 FY23 Y-o-Y Q2FY24 Q-0-Q Growth (%) Growth (%) Revenue from Operations 20728 9634 15% 19095 9% Other Income 250 209 20% 293 (15%) Total Income 20,978 9843 n3% 19,388 8% EBITDA 6923 2631 163% 515
Slide 37: Consolidated Profit and Loss - Quarterly
Choice The Joy of Earning Particulars (Rs. Lakhs) Q3 FY24 Q2 FY24 Q-0-Q (%) Q3 FY23 Y-0-Y (%) H i Growth Growth Revenue from Operations 20728 19095 9634 Other Income 250 293 209 Total Income i 20978 | 19388 8% 9,843 3% Employee Benefit Expenses 5729 5,399 2852 Finance Costs 1137 984 658 Depreciation
Slide 38: Consolidated Financial Performance - 9 Months
Choice The Joy of Earning Consolidated Financial Performance - 9 Months Particulars (Rs. Lakhs) 9MFY24 9MFY23 Y-0-Y (%) Growth Revenue from Operations 53,614 24914 OtherIlncome 678 649 TotalIncome 54,292 25,563 12% Employee Benefit Expenses 15832 7186 Finance Costs 2,794 1616 Depreciation & Amortisa
Slide 39: Board Members
Choice The Joy of Earning Board Members g Board with extensive experience across businesses (3 Mrs. Vinita Patodia CA Kamal Poddar CA Suyash Patodia CA Ajay Kejriwal Non- Executive Managing Joint Managing Director & xecutive Chairperson Director Direc EO CA Subodh Kumar Mr. AK. Thakur CA Sudha Bhush
Slide 40: Current Entity Structure
Choice The Joy of Earning Current Entity Structure cocen 100% 98.05% 100% 100% 50% Choice Corporute Services 75% \ \ \ \ Choice Choice Choice Choice Wealth Portfolio Connect Tech lab 100% 100% 100% 100% —A Choice International Ltd
Slide 41: Environmental, Social and Governance
Choice The Joy of Earning Environmental, Social and Governance Conducting operations Well-established in energy efficient Financial services manner by operating business. Implementing in green or anti-bribery environmentally friendly w management system. @ offices ie, offices which - are LEED or BRE
Slide 42: Geographical Presence
Choice The Joy of Earning Geographical Presence Mumbai - (Head office) Agra Chittorgarh Jammu Mandsaur Rajsamand Ahmedabad-1 Cochin Jamshedpur Mangalore Ranchi Ahmedabad-2 Coimbatore Jhalawar Mehsana Ratlam Ahmedabad-3 Dehradun Jhunjhunu-1 Morbi Salem Ahmednagar Dhanbad Jhunjhunu-2 Mumbai-Marol Secu
Slide 43: Media Presence
Choice The Joy of Earning Media Presence Extensive coverage by Television, Digital, Print and Social Media News and Print Media & k CNBC EINEME. BusiicssLine ‘, |ka& lfi“n‘t TVis SiTn2 FININCIAL EXPRESS gag,g% z Bloomberg PROFT ThePrint [BusinEss] "I Ecosomic Ty Business Standard - . FINANCIAL moneyc
Slide 44: Memberships and Certifications
Choice The Joy of Earning Memberships and Certifications Registered across exchanges in India Memberships And Registrations Certifications Auditors MCX . ONSE 35S MGX MSKA & Associates Chartered Accountants oncox gl A - A Member firm of BDO
Slide 45: Disclaimer
Choice The Joy of Earning Disclaimer Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. T
Slide 46: Thank you
Thank you