Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN

Cholamandalam Investment And Finance — Q3 FY2023 Earnings Presentation

84 slides from Cholamandalam Investment And Finance's earnings presentation, Jan 31, 2023

1. Slide 1: Board meeting outcome letter to stock exchanges

   January 31, 2023 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, Kamala Mills 1st Floor, P.J. Towers Compound, Senapati Bapat Marg, Dalal Street, Fort, Lower Parel, Mumbai 400 001 Mumbai 400 013 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243

2. Slide 2: Interim dividend, NCD issue and analyst call schedule

   The interim dividend shall be paid to those shareholders whose names appear in the register of members as on the record date in respect of shares held in physical form and in case of shares held in dematerialised form, as per the details to be furnished by the depositories as on the record date. The

3. Slide 3: Corporate Presentation - December 2022

   CORPORATE PRESENTATION - DECEMBER 2022

4. Slide 4: Table of Contents

   Table of Contents 1. Group overview 2. Corporate 3. Financial 4. Business overview performance segments' overview 5. Funding profile 6. Subsidiaries 7. Environmental 8. Risk performance Social Governance management 2

5. Slide 5: Murugappa Group Overview

   Murugappa Group Overview BEST PLACES TO WORK IN INDIA 2022 Yo murnveareacaour Y ess a

6. Slide 6: Murugappa Group in a Nutshell

   Murugappa Group in a Nutshell Consolidated Group Market 122 Years of $7.0 $26.7 Turnover cap (as on 31st Years Existence B B (FY22) Dec 2022) Listed 3 Sectors 29 Businesses 10 Companies 40 Geographical 105 Manufacturing 53,000+ Work force Countries Presence Locations Locations 4

7. Slide 7: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 39,738 1,11,518 69,767 Turnover (Cr.) 23,431 8,432 15,049 PAT(Cr.) 1,788 1,341 2,305 Market Cap(Cr.) 25,963 10,093 16,603 53,576 59,421 NA 10,347 Turnover (Cr.) 19,068 4,363 3,290 15350 10,141 4.824 8

8. Slide 8: Corporate Overview

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9. Slide 9: Spirit of Murugappa

   SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7

10. Slide 10: Cholamandalam Investment & Finance Company Limited

    Cholamandalam Investment & Finance Company Limited 22.7 lakh + customers 41,445 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 22.7 lakh plus customers till date 200 plus employees in year 2000 to 41,000+ employees today Rs. 1

11. Slide 11: Our journey so far

    Our journey so far FY 2021-22 FY 2022-23 FY 2020-21 2023 • Total AUM FY 2015-20 2016 2022 crossed ₹1 lakh • GNPA recognition at 120 days 2021 • Reaffirmed as Cr. • AUM crossed ₹30K Cr. • AUM crossed ₹69k Cr. constituent of • Increased • New LEAP LOS Digital platform • Increased branch FTSE4Good Inde

12. Slide 12: Highlights – YTD Dec22

    Highlights – YTD Dec22 ▪ Highest ever disbursement of Rs.45,512 Cr which is a growth of 100% as compared to YTD Dec21. ▪ Business AUM at Rs 95,468 Cr registering a growth of 31% YoY. Overview ▪ Total AUM has crossed Rs.1 lakh Cr. ▪ PBT at Rs.2,441 Cr registers a growth of 24% as compared to YTD Dec2

13. Slide 13: Highlights – YTD Dec22

    Highlights – YTD Dec22 ▪ Focused on providing Home Loans under affordable segment with presence across 426 branches PAN India. ▪ 89% of assets are in tier 2,3,4 cities and suburbs of tier 1 cities HL ▪ Delivered disbursements of Rs.2,425 Cr as on YTD Dec22 (80% growth) as compared to YTD Dec21. ▪ PB

14. Slide 14: Ecosystem Play in the MSME Sector

    Ecosystem Play in the MSME Sector Larger enterprises largely focused by Banks Large SME Focused by via SME business since the last 5 years Medium (SENP) Focused by via LAP business since the last 15 years Small (SENP & SEP) Focused by via CSEL business | New Business Mini (SENP) Focused by via SBPL|

15. Slide 15: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Top Domestic Institutional Holding Bodies Mutual 4% • Axis Mutual Fund Funds 18% • HDFC Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund Public • Canara Robeco Mutual Fund 6% • UTI Mutual Fund Promoters' Top F

16. Slide 16: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (6) Punjab (23) Himachal Pradesh (17) 1166 Chandigarh (2) Uttarakhand (16) 1148 1151 Haryana (35) 1145 Sikkim (1) Arunachal Delhi (5) Pradesh (1) Rajasthan (83) UP (73) Assam (25) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Meghalaya (3) Bihar (44) Gujarat Mizoram (1) M

17. Slide 17: Financial Performance

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18. Slide 18: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years 16 • Capital Infusion • Spurt in GNPA in FY20 and FY21 was due to Covid and in FY22 was due to new RBI norms on NPA

19. Slide 19: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 45,512 2% 5% 6% 6% 5% 9,040 6% 16% 6% 20% 21% 5% 22% 13% 10% 2,425 5% 16% 16% 5% 6% 6% 15% 6,537 15% 13% 14% * 22,772 1,104 1,347 * 17,559 3,666 80% 78% * 14,623 3,787 73% 73% * 13,329 27,509 64% 3,132 * 10,430 1,072 58% 59% 60% 2,121 * 8,706 611

20. Slide 20: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 95,468 * 87,668 6,907 * 81,925 4,765 7,278 2,937 1% 1% 6,454 4% 5% 1% 5,938 * 72,724 7% 7% 7% * 70,023 7% * 67,821 792 19,997 7% 8% 502 551 5,255 8% 4,880 18,843 21% 22% 4,407 17,675 22% 22% 21%

21. Slide 21: Chola – Disbursement/Portfolio Mix – YTD Dec22

    Chola – Disbursement /Portfolio Mix – YTD Dec22 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise SME 3% SME 9% HCV 4% CE 4% HCV 4% CSEL 4% LCV 11% CE 4% 3 Whlr 0.4% LCV 13% Mini LCV 2% HL 8% CSEL 10% Mini LCV 2% Car 7% 3 Whlr 0% SBPL 1% Car 7% HL 5% MUV

22. Slide 22: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *13,530 *12,849 164 *12,316 164 164 1813 *11,074 *10,421 164 *9,887 164 164 1457 13,366 12,152 12,684 10,909 9,723 10,256 684 566 607 563 524 327 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY

23. Slide 23: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.2% 3.1% 8.0% 7.8% 7.7% 3.0% 3.0% 7.7% 7.7% 7.6% 7.6% 2.8% 2.9% 2.9% 2.6% 2.1% Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 Loan Losses & Provisions (%) R

24. Slide 24: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 23.7% 33.0 20.6% 29.3 19.3% 27.6 27.2 18.9% 25.3 17.8% 13.5% 16.0 Q1 Q1 Q2 Q2 Q3 Q3 Q1 Q1 Q2 Q2 Q3 Q3 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 P/E Ratio P/BV Ratio 32.1 4.7 4.4 4.4 4.3 4.1 26.9 3.9 22.4 21.9

25. Slide 25: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 3,635 13,329 8,706 14,623 10,430 17,559 68% 22,772 45,512 100% Closing Assets - Managed 75,763 86,703 75,063 91,841 79,16

26. Slide 26: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Dec21 Mar22 Dec22 ASSETS Financial Assets 77,025 81,081 1,03,086 Cash and Bank balance 5,114 4,220 5,054 Derivative financial instruments 124 187 352 Receivables 108 128 163 Loans 69,600 74,149 93,546 Investments 1,640 2,076 3,709 Other Financial Assets

27. Slide 27: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Sep22 Sep22 Sep22 Dec22 Dec22 Dec22 Sep22 Sep22 Sep22 Dec22 Dec22 Dec22 Mgt Mgt Mgt Mgt Particulars Normal Total Normal Total Normal Total Normal Total Overlay Overlay Overlay Overlay INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to GA % to GA

28. Slide 28: Stagewise ECL Summary – Dec22

    Stagewise ECL Summary – Dec22 Normal Total Normal Total Mgmt Mgmt Particulars Asset Model Overlay Provn NNPA Asset Model Overlay Provn NNPA Rs in Cr % Stage 1A (A ) 87,602 442 - 442 87,160 91.35% 0.50% - 0.50% 90.89% Stage 1B (B ) 221 11 - 11 210 0.23% 5.04% - 5.04% 0.22% Total Stage 1 (C ) 87,823 4

29. Slide 29: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise Closing Gross Stage 3 ECL Provision Net Net Asset Class Asset Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Dec22 95,893 3,367 3.51% 1,379 40.96% 1,988 2.07% VF 62,634 2,274 3.63% 949 41.74% 1,325 2.12% LAP 19,296 918 4.76% 345 37.61% 573 2.97% HL 6,957 137 1.97% 68

30. Slide 30: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend Chola 44.27% 43.52% 42.93% 12.00% 41.52% 41.62% 41.48% 40.69% 40.96% 39.67% 38.80% 40.00% 10.00% 36.45% 35.51% 8.00% 35.00% 6.79% 6.16% 5.85% 6.00% 2.41% 30.00% 2.24% 4.37% 4.16% 3.80% 3.75% 3.96% 2.27% 3.84% 3.34% 3.51% 4.00% 2.98% 1.73% 1.58% 1.63% 1.75% 1.59% 1.39% 1.4

31. Slide 31: Business Overview

    Business Overview 29

32. Slide 32: Vehicle Finance

    Vehicle Finance

33. Slide 33: Vehicle Finance: YTD Dec22 Performance

    Vehicle Finance: YTD Dec22 Performance • Disbursements grew by 65% in YTD Dec22 to Rs.27,509 Cr as Disbursements compared to Rs.16,654 Cr in YTD Dec21. Assets under • AUM have grown by 21% YoY. management Loss and • Loan losses dropped to 1.5% in YTD Dec22 as compared to 1.9% in provisions YTD Dec21

34. Slide 34: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light Commercial Vehicle segment had a growth ▪ Increased demand for Light Commercial Vehicle will of 14% in Q3 FY23 & 47% in YTD Dec22. The segment help us garner higher volumes. However, we will be is witnessing

35. Slide 35: Sector outlook – Vehicle Finance business (2/3)

    Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger Vehicle (Car & MUV) segment had a ▪ Our focus continues to be on retail customers growth of 23% in Q3 FY23 which is the second especially in smaller towns and rural areas. We highest sales for any quarter

36. Slide 36: Sector outlook – Vehicle Finance business (3/3)

    Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a growth ▪ Our exposure in this segment is around 6% at of 25% in Q3 FY23 & 28% in YTD Dec22. Volumes are a portfolio level and our focus will be on expected to pickup in coming q

37. Slide 37: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 1,86,795 1,01,553 Chola @ 30% Chola @ 6% CAGR @ 15% CAGR @ 15% 14% (8%) 1,05,589 58,747 97,398 99,277 52,862 92,870 50,490 46,679 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Q3 FY27 (E) Q3 FY20 Q3 FY21 Q3 FY22 Q3

38. Slide 38: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) 1,02,855 Chola @ 62% (in Units) Chola @32% CAGR @ 15% 12,26,139 42% 72,770 23% 8,97,983 9,36,306 CAGR @ 10% 7,86,477 7,61,336 51,137 40,765 37,186 Q3 FY20 Q3 FY21 Q3 FY22 Q3 FY23 Q3 FY27 (E) Q3 FY20 Q3 FY2

39. Slide 39: Vehicle Finance—Business Model & Positioning

    Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a

40. Slide 40: Vehicle Finance—Business Model & Positioning

    Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re

41. Slide 41: Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY23 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 6% 6% 5% Kerala Kerala 7% 6% Puducherry 11% 10% Gujarat Puducherry 5% Telangana 4% Gujarat 0% 0% Telan

42. Slide 42: Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY23 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler HCV CE 1% HCV CE 0.3% 7% 6% 5% 7% 2 Wheeler LCV 2 Wheeler 6% 18% LCV 9% 21% MUV 9% Used Vehicles MUV 27% Used Vehicles 8% 30% CAR

43. Slide 43: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 10,446 6% 7% 6% 6% 7% 687 4% 6% 8% 6% 5% * 8,785 560 * 8,562 * 8,502 17% 19% 17% 572 502 468 1,816 18% 19% * 7,647 664 556 479 Yield Low 447 7% 333 925 7% 9% 9% 9% 1,579 1,595 1,604

44. Slide 44: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 6% 6% 6% 6% 7% * 61,285 8% 7% 7% 7% 7% * 57,606 * 55,376 3,990 * 52,881 3,666 4,126 * 50,675 3,557 21% 21% 21% 21% 21% Medium Yield Low Yield 3,395 4,015 3,189 4,000 3,914 12,810 3,937 12,305 7

45. Slide 45: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) 27,509 * 61,285 *57,606 305 *55,376 417 547 * 50,675 *48,403 *49,285 891 1,295 1,103 16,654 60,980 54,829 57,189 10,446 47,108 48,182 49,785 8,562 8,502 7,647 6,161 2,846 Q1 Q1 Q2 Q2 Q3 Q3 YT

46. Slide 46: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 6,403 1,538 5,757 1,369 591 590 2,133 2,257 521 1,916 2,013 1,903 1,938 480 468 258 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec

47. Slide 47: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 3.5% 3.3% 8.9% 9.0% 3.3% 3.3% 3.4% 3.3% 3.1% 8.7% 8.7% 2.6% 8.5% 8.5% 8.5% 8.1% Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 Loan Losses &

48. Slide 48: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 2,846 8,562 6,161 8,502 7,647 10,446 37% 16,654 27,509 65% Closing Assets - Managed 48,403 55,376 49,285 57,6

49. Slide 49: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 2,846 8,562 6,161 8,502 7,647 10,446 37% 16,654 27,509 65% Closing Assets (On B/S) 47,108 54,829 48,182 57,18

50. Slide 50: Loan Against Property

    CO eee ets Loan Against Property

51. Slide 51: Loan Against Property – YTD Dec22 Performance

    Loan Against Property – YTD Dec22 Performance • Disbursements grew by 78% in YTD Dec22 at Rs.6,537 Cr as compared Disbursements to Rs.3,666 Cr in YTD Dec21. Asset under • AUM grew by 25% YoY. management Loss and provisions • Loan losses dropped to 0.02% in YTD Dec22 from 1.1% in YTD Dec21. Profit be

52. Slide 52: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL expects MSME LAP segment to grow at 6-8% in FY23, driven by improving economic conditions and the • Chola’s LAP team is currently focusing on increasing mild impact of the third pandemic wave, assisting in its market sh

53. Slide 53: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 19,997 78% * 18,843 6,537 1,205 * 17,675 1,318 1,418 * 16,218 * 15,421 * 14,513 1,680 1,828 1,961 3,666 18,792 17,525 38% 36% 16,257 14,537 13,592 12,552 2,246 2,255 2,036 1,661 1,624

54. Slide 54: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 564 1,640 1,335 296 597 200 178 186 540 503 432 440 463 130 101 65 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 52

55. Slide 55: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 1.5% 5.7% 1.4% 5.4% 5.5% 1.4% 5.3% 5.1% 4.8% 1.3% 4.7% 4.8% 1.2% 1.2% 1.1% 0.8% Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 Loan L

56. Slide 56: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 382 2,036 1,624 2,246 1,661 2,255 36% 3,666 6,537 78% Closing Assets - Managed 14,509 17,675 15,306 18,

57. Slide 57: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 382 2,036 1,624 2,246 1,661 2,255 36% 3,666 6,537 78% Closing Assets (On B/S) 12,552 16,257 13,477 17,5

58. Slide 58: Home Loans

    Home Loans

59. Slide 59: Home Loans – YTD Dec22 Performance

    Home Loans – YTD Dec22 Performance • Disbursements grew by 80% in YTD Dec22 at Rs.2,425 Cr as compared Disbursements to Rs.1,347 Cr in YTD Dec21. Asset under • AUM have grown by 39% YoY. management Loss and provisions • Loan losses dropped to 0.6% in YTD Dec22 from 1.3% in YTD Dec21. Profit before t

60. Slide 60: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • Demand remained robust in Q3 FY23 and Affordable • Chola continues to expand its geographical footprint HFC growth continues to be pegged at 17-20% in in the North, East & West Zones while continuing to FY23. deepen its footprint in the

61. Slide 61: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 2,425 *7,278 456 *6,454 *5,938 478 500 *5,255 *4,880 *4,407 553 579 1,347 602 6,822 1,072 5,976 5,438 4,301 4,702 743 3,805 611 605 539 203 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY22 FY23 FY

62. Slide 62: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 680 223 502 150 103% 254 222 85 204 74 167 181 64 154 51 58 42 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY22 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 60

63. Slide 63: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 3.4% 8.4% 7.9% 8.0% 8.0% 7.7% 7.9% 7.6% 2.7% 2.7% 7.3% 2.5% 2.1% 2.2% 2.1% 1.6% Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 FY22 FY23 FY22 FY23 FY22 FY23 Dec21 Dec22 Loan Losses & Pro

64. Slide 64: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 203 611 605 743 539 1,072 99% 1,347 2,425 80% Closing Assets - Managed 4,407 5,938 4,880 6,454 5,255 7,278 39% 5,2

65. Slide 65: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 YTD Dec21 YTD Dec22 (YTD) Q3-o-Q3 Y-o-Y Disbursements 203 611 605 743 539 1,072 99% 1,347 2,425 80% Closing Assets (On B/S) 3,805 5,438 4,301 5,976 4,702 6,822 45% 4,70

66. Slide 66: Funding Profile

    ih onda (CCT Corres tana

67. Slide 67: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.07 19.62 19.15 18.40 17.75 3.93 3.13 2.90 2.63 2.63 15.14 16.49 16.25 15.77 15.12 FY21 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratin

68. Slide 68: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 65,806 * 69,174 * 73,929 * 79,321 * 89,305 4% 4% 6% 7% 2% 7% 2% 2% 5% 2% 3% 5% 6% 7% 6% 9% 4% 5% 7% 2% 2% 2% 4% 2% 4% 15% 17% 18% 14% 18% 57% 61% 58% 58% 52% 6% 6% 5% 5% 4% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Tier II

69. Slide 69: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 65,806 * 69,174 * 73,929 * 79,321 * 89,305 5% 5% 6% 7% 9% 2% 3% 3% 2% 2% 2% 3% 3% 6% 5% 3% 1% 4% 1% 3% 66% 66% 66% 69% 64% 1% 1% 1% 1% 4% 1% 5% 5% 6% 4% 11% 9% 11% 9% 10% 3% 3% 4% 3% 3% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY

70. Slide 70: ALM Statement as of 31st Dec 2022 (As per IND AS)

    ALM Statement as of 31st Dec 2022 (As per IND AS) (₹Cr) ALM snapshot as on 31st Dec 2022 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 3,195.00 374.28 2,708.85 0.80 - - - 1,117.34 7,396.27 Advances 4,464.06 4,236.56 2,231.66 9,091.69 15,

71. Slide 71: Consolidated Financials

    Consolidated Financials 69

72. Slide 72: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q3-o-Q3 Income 2,493 2,796 2,497 3,067 2,557 3,408 33% Expenses 2,049 2,032 1,675 2,305 1,847 2,482 34% PBT 444 764 821 762 710 926 30% PAT 329 562 610 563 528 685 30% 70 Note: Above financials incl

73. Slide 73: Environmental Social Governance

    Environmental Social Governance 71

74. Slide 74: Awards & Accolades

    Awards & Accolades • FTSE Russell - Included in FTSE4 Good Index series FY21 FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. FY 23 • CRISIL ESG rating – STRONG 72 Note: For more

75. Slide 75: Risk Management

    Risk Management 73

76. Slide 76: Risk Governance Structure

    Risk Governance Structure ▪ Oversee the entire risk management process Board of Directors ▪ Formed in 2007-08 ▪ Meet four times in a year Risk Management ▪ Periodic review of framework, Committee process, key risk movement and other initiatives Executive Director ▪ Review the risk management process

77. Slide 77: Key Functions of Risk Management Division

    Key Functions of Risk Management Division • Identify key risks in each function/business • Assess the risks in terms of probability of occurrence and their impact • Identify mitigation/ risk controls put in place by respective process champions • Identify key risk indicators to measure and monitor r

78. Slide 78: ERM as Value Centre in Business Processes

    ERM as Value Centre in Business Processes • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management and channels risk profiles prioritization for collection efforts Underwriting models to Customer retention optimally onboard risk

79. Slide 79: ERM as Value Centre in Corporate Processes

    ERM as Value Centre in Corporate Processes • Periodic engagement with internal audit team to incorporate key observations on process failures identified by IA team which will be considered as part of risk review process. ERM also gives risk based inputs to internal audit team to plan and prioritize

80. Slide 80: Information Technology

    Information Technology 78

81. Slide 81: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all • Continue wider usage of hybrid cloud solutions and adopt • New platform for digital enablement of SME ecosystem with cloud-fir

82. Slide 82: Contact us

    Contact us Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Our registered Chennai 600001. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–3000 7172 http://www.cholamandalam.com Sujatha P-Sr. Vice President & Compa

83. Slide 83: Disclaimer

    Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and Finance Company Ltd and its subsidiaries. There can

84. Slide 84: Thank You

    & Chola a6 Enter a better life murugappa THANK YOU Dare House, No. 2, N.S.C. Bose Road, Parrys, Chennai - 600001., Phone : 044 4090 7172; Fax : 044 2534 6464, E-mail : customercare@chola.murugappa.com | Website : www.cholamandalam.com Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company — Q3 FY2023 Earnings Presentation on 6ix