Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q1 FY22 Earnings Presentation

38 slides from Home First Finance Company India's earnings presentation, Jul 29, 2021

  1. Slide 1: Exchange filing cover letter

    homeftirst Well take you home HFFCIL/BSE/NSE/EQ/47/202 I-22, Date: 29-07-2021 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai- 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 543259 NSE

  2. Slide 2: Investor Presentation – Q1 FY22

    Tech in Mind Service at Heart Smart Loans for Affordable Homes! Investor Presentation – Q1 FY22

  3. Slide 3: Safe Harbor

    Safe Harbor This presentation and the accompanying slides (the "Presentation"), which have been prepared by Home First Finance Company India Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe

  4. Slide 4: Vaccination Drive

    Vaccination Drive 1700 people vaccinated at Home First Head Office Home First in collaboration with all True North portfolio companies and hospitals such as Apollo and Cloudnine organized a vaccination camp in Mumbai. 1700 employees of various companies and their dependents including household suppo

  5. Slide 5: Executive Summary | Q1FY22

    y-o-y q-o-q Executive Summary | Q1FY22 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS ₹42,943 Mn ₹3,046 Mn 1.9% +3.7% +476.9% -32.6% +90 bps +10 bps +18.5% Spread * Cost to Income Opex to Assets 5.5% 32.1% 2.5% +90 bps +10 bps +330 bps -590 bps -10 bps -40 bps PPOP Profit After Tax (

  6. Slide 6: Macro Economy

    Macro Economy Gems & Jewellery Export have Crossed pre-Covid levels (Rs Bn) Economy coming back to normal Unemployment Levels in Key Western India States (%). Pre COVID Post COVID Pre COVID Post COVID 247 252 Vaccination in India reached 24% of at least 9.2 213 215 212 209 177 183 182 181 184 183 19

  7. Slide 7: HomeFirst – Who we are

    HomeFirst – W ho we are Technology driven affordable housing finance company with pan India presence Home loans to first time home buyers with predominant focus on salaried individuals having income < ₹50k p.m 92% of book comprise of housing loans with average ticket size of ₹1.0Mn Strong liquidity pip

  8. Slide 8: Our Journey

    Our Journey Scalable operating model CARE Rating CARE / ICRA Rating We got listed BBB- BBB+ A- A+ ₹42,943 Mn Warburg Pincus invested in the company (2) AuM (Jun’21) Series C 60,000+ sanctions True North acquires AuM crosses majority ₹35 bn. stake 30,000+ customers GIC Net worth Co-investment crosses

  9. Slide 9: Share Holding as on Jun'21

    Share Holding as on Jun’21 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 20.2 AETHER (MAURITIUS) LIMITED (GIC)^ 13.4 TRUE NORTH FUND V LLP 11.0% KEY INVESTORS % Holding 20.2% AETHER (MAURITIUS) LIMITED ORANGE CLOVE INVESTMENTS B.V 28.8 (WARBURG PINCUS) (GIC)^ 7.8 BESSEMER INDIA CAPITAL H

  10. Slide 10: Experienced Management Team with Distinguished Board

    Experienced Management Team with Distinguished Board Experienced Management Team Distinguished Board Manoj Viswanathan Ajay Khetan Deepak Satwalekar Chairman & Chief Executive Officer Chief Business Officer Ex MD,CEO - HDFC Life Independent Director 24+ years in Consumer Lending. 11 19+years in Consumer

  11. Slide 11: Meet our customers

    Meet our customers Formal Salaried Informal Salaried Self Employed Customer 1 Customer 2 Customer 3 Age:44 / Location: KR Puram (suburbs of Bangalore) Age: 32 / Location: Sayan (suburbs of Surat) Age: 36 / Location: Avadi (suburbs of Chennai) Who are they? 74% Salaried 26% Self employed Teacher with

  12. Slide 12: Our unique value proposition to our customers

    Our unique value proposition to our customers Who are our customers… What do our customers need What challenges do they face Salaried and self-employed Home loan requirement Inability to meet NPS individuals primarily in the ₹0.5 -1.5 mn documentation requirements range (1) of traditional lenders 75

  13. Slide 13: Distribution Strategy

    0 -4 4-7 7 - 15 Distribution Strategy Contribution to India's GDP FY’20 ( %) Existing branches - 72 New branch locations - 33 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 32 72 76 12 01 137 Geographic Expansion Branches Districts States UT Tou

  14. Slide 14: Omni channel lead generation driving sourcing

    Omni channel lead generation driving sourcing Diversified lead generation channels |Q1 FY22 68.7% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 12.2% 4.3% 6.0% 0.5% 1.2% 2.5% 1.7% 2.9% 100% in-house conversion by HomeFirst RMs. Construction Digital Digi

  15. Slide 15: Data Science backed centralized underwriting

    Data Science backed centralized underwriting Risk Management Design Tech-Led Centralised Loans approved Salaried customers 100+ data points & digitally Consistency in underwriting within 48 hrs captured data for all customers Build detailed understanding Integrated CRM and Loan of customer via field

  16. Slide 16: Scalable operating model built on holistic technology usage

    Scalable operating model built on holistic technology usage Tech Interventions API Integration with third party Home First App for all stakeholders databases E-NACH 360 o view of customer for employees E- Sign Proprietary property price predictor E- Vault Electronic payments Machine learning models

  17. Slide 17: Digital Adoption

    Digital Adoption Avg time spent by user on the app No of Unique User logins on App Unique Paying Users via App YoY: 63.6% YoY: 79.2% 2m 30 sec 28,848 28,876 3,975 For Q1 FY22 3,756 22,672 19,551 2,826 17,646 2,521 2,218 %of unique user logins of active customers 55.8% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1F

  18. Slide 18: Business Updates

    Business Updates CG

  19. Slide 19: Healthy Growth in Loan Book and Disbursements

    Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 4 Years Last 5 Quarters 4,518 3,488 Q1FY22 disbursement at 67.4% of Q4FY21 3,046 2,432 15,728 16,183 10,966 7,455 528 FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Assets Under Management ( ₹Mn ) Last 4 Years Last 5 Qua

  20. Slide 20: Consistent Portfolio Metrics | Jun'21

    Consistent Portfolio Metrics | Jun’21 1% 1% 6% 1% AUM by Product AUM by Occupation Housing Loan 25% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharp focus on High ratio of 92% 74% housing loans salaried customers 70% 3% 8% AUM by Credit history AUM by Ticket Size Upto 0.5mn Ha

  21. Slide 21: Expansion in Spreads

    Portfolio Yield Expansion in Spreads COB Spread Net Interest Spread Movement Last 4 Years Last 5 Quarters 12.9% 13.0% 13.1% 13.1% 13.0% 12.8% 12.6% 12.7% 12.3% Continued Improvement 8.8% 8.8% in Cost of Borrowing 8.4% 8.5% 8.3% 8.0% 8.0% 7.4% 7.2% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY

  22. Slide 22: Healthy Leading Indicators – Bounce rate

    Bounce rate Healthy Leading Indicators Bounce rate :On the day of EMI presentation Bounce rates resilient and 36.4% improving 28.3% 20.1% 17.3% 18.3% 16.1% 11.7% 10.8% 10.9% 10.5% 10.2% 9.2% 9.5% 10.0% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Jul'21

  23. Slide 23: Healthy Leading Indicators – Collection Efficiency

    Collection Efficiency (1) Healthy Leading Indicators Unique Customers (2) Collection Efficiency Collection efficiency trending back to normal levels 97.8% 97.7% 98.5% 99.8% 96.6% 97.6% 94.7% 97.6% 96.3% 95.5% 96.1% 96.3% 96.3% 96.9% 94.0% 94.3% 93.8% 95.3% 94.3% 93.3% 95.0% 84.6% 83.5% 78.4% 79.8% 72.5%72

  24. Slide 24: Sound Credit Indicators

    Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS No ECGLS 5.8% 8.9% 1.9% 4.1% 4.1% 4.1% 7.5% 6.2% 6.7% 6.2% 1.8% 1.6% 1.8% 4.4% 1.7% 2.0% 3.1% 3.2% 1.4% 1.5% 1.3% 3.8% 2.0% 0.8% 1.0% 0.6% of POS 0.6% 2.3% 2.5% 2.3% 1.0% 0.9% restructured 0.8% 0.9% 0.9% 0.5% 0.4% (208

  25. Slide 25: Diversified Funding Profile at competitive cost of borrowing

    DA Diversified Funding Profile at NCD COB% (Represents quarterly avg.) competitive cost of borrowing NHB Refinance NBFC Extended banking relationship Public Sector Banks Borrowings Mix and Cost of Borrowing trend with foreign bank by adding Pvt Sector Banks HSBC Bank. 100% 10.00% 15% 90% 17% 21% 19% 22

  26. Slide 26: ALM Position as of Jun'21

    ALM Position as of Jun’21 Inflow Outflow Cumulative Surplus 9,579 8,383 8,036 11,023 20,589 10,713 (₹Mn) Robust ALM 67,983 profile ensuring sufficient liquidity 60,770 57,270 buffers 43,184 40,181 Cumulative 32,161 Positive flows across all the 22,303 time buckets 17,077 14,343 14,267 8,694 4,765 0-3months

  27. Slide 27: Securitization Volume

    Securitization Volume ₹2,756 Mn ₹3,574 Mn ₹3,003 Mn Consistent demand for securitization of the company’s 2,383 portfolio 1,844 1,491 1,472 1,159 1,183 611 373 - - - - - Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 26 Investor Presentation – Q1 FY22

  28. Slide 28: Strong Liquidity Position

    Strong Liquidity Position Liquidity Buffer as on Jun’21 (in ₹Mn) Unencumbered Cash and Cash equivalent 10,007 Un-availed Sanction from NHB - Un-availed Sanction from Banks 4,795 Total- 14,802 Particulars (in ₹Mn) Q2 Q3 Q4 Q1 FY22 FY22 FY22 FY23 ₹4,383 million Opening Liquidity 14,802 15,191 14,632 14

  29. Slide 29: Financial Updates

    Financial Updates CG

  30. Slide 30: Financial Highlights

    Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) (1) Equity Raised - 1508 3281 3450 - 2569 11 ( ₹Mn ) 1001 13805 13805 14173 796 Strong profit growth Strong NW, and 9334 9726 low A/E to despite maintaining 457 386 313 351 high liquidity and 5227 support growth 160 3252 conservative COVI

  31. Slide 31: ECL Provisions Summary

    ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Jun’21 Loans – Principal Outstanding 32,424.8 1,320.7 665.5 34,411.0 ECL Provision 131.9 153.5 174.3 8.3 467.9 Net Loans – Principal Outstanding 32,292.9 1,167.2 491.2 33,943.1 ECL Provision %

  32. Slide 32: Annexures

    Annexures CG

  33. Slide 33: Quarterly and Annual Profit & Loss Statement

    Quarterly and Annual Profit & Loss Statement Particulars (in ₹Mn) Q1FY22 Q4FY21 Q1FY21 QoQ YoY FY21 FY20 YoY Interest Income on 1081.5 1,030.5 1,012.4 4.9% 6.8% 4,026.0 3,425.0 17.5% term loans Net gain on DA 193.7 181.7 257.6 439.4 371.2 Income other than interest 145.0 143.1 72.2 426.3 400.6 income

  34. Slide 34: RoE Tree

    RoE Tree Particulars Q1 FY22 Q4 FY21 Q1 FY21 FY21 FY20 Interest Income on term loans / Average total assets 9.5% 9.7% 11.3% 10.1% 11.5% Net Gain on DA / Average total Assets 1.7% 1.7% 2.9% 1.1% 1.2% Income other than interest income on term loans/ Average total assets 1.3% 1.3% 0.8% 1.1% 1.4% Total

  35. Slide 35: Key Financial Ratios

    Key Financial Ratios Particulars Q1 FY22 Q4 FY21 Q1 FY21 FY21 FY20 Profit after tax on average total assets (ROA) 3.1% 2.9% 4.3% 2.5% 2.7% Leverage (Average total assets / average Equity or average 3.2 3.4 3.8 3.5 4.1 Net worth) Profit after tax on average equity or average Net worth 10.0% 10.1% 16.

  36. Slide 36: Balance Sheet

    Balance Sheet Particulars (in ₹Mn) Q1 FY22 FY21 Q1 FY21 ASSETS Cash & cash equivalents and Other bank 6,409.9 6,798.7 3,046.0 balance Loans 33,951.4 33,265.0 28,693.7 Investments 4,149.5 3,750.1 4,064.8 Other financial assets 1,004.9 1,011.7 919.4 Property, plant and Equipment 177.1 164.0 184.6 Non-

  37. Slide 37: Thank You

    Thank You For further information, please contact Company Investor Relations Advisors CIN: U65990MH2010PLC240703 Ms. Neha Shroff Mr. Manish Kayal, Head - Investor Relations +917738073466 manish.kayal@homefirstindia.com neha.shroff@linkintime.co.in Investor Relations - HomeFirst investor.relations@homefi

  38. Slide 38: Glossary

    Glossary Terms Explanation Loans – Principal outstanding represents gross principal outstanding of loans as of the last day of the POS - Principal Outstanding relevant period or year as per the restated financial statements. Net Interest Income represents interest income on term loans minus Interest

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