Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q4 FY23 Earnings Presentation

48 slides from Home First Finance Company India's earnings presentation, May 2, 2023

  1. Slide 1: Exchange filing cover letter

    HFFCIL/BSE/NSE/EQ/10/2023-24 Date:02-05-2023 To, To, BSE Limited, The National Stock Exchange of India Limited, Department of Corporate Services, The Listing Department, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai- 400001. Mumbai- 400 051. Scrip Code- 543259 Scrip Symbol- H

  2. Slide 2: Investor Presentation Q4 – FY23

    Investor Tech Growth Productivity Presentation Q4 – FY23 Risk Management Funding ESG

  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: Executive Summary | FY23

    Executive Summary | FY23 y-o-y Assets Under Management (AUM) (1) Disbursement Gross Stage 3 / POS (GNPA %) ₹ 71,980 Mn ₹30,129 Mn (2) 1.6 In line with RBI circular dated 12 Nov 2021 0.9% prior to such classification +33.8% +48.4% -70 bps Spread(3) Cost to Income DPD 30+ / POS % 5.7% 35.7% 2.7 +10 bp

  5. Slide 5: Executive Summary | Q4FY23

    Executive Summary | Q4FY23 y-o-y q-o-q Assets Under Management (AUM) (1) Disbursement Gross Stage 3 / POS (GNPA %) ₹ 71,980 Mn ₹8,691 Mn (2) 1.6 In line with RBI circular dated 12 Nov 2021 0.9% prior to such classification +33.8% +6.6% +35.6% +11.4% -70 bps -20 bps Spread(3) Cost to Income DPD 30+ /

  6. Slide 6: HomeFirst – Who We Are?

    HomeFirst – Who We Are? Technology driven affordable housing finance company with pan India presence ESG Risk Rating by MorningStar Sustainalytics Home loans to first time home buyers with predominant focus on salaried individuals ‘Amongst Leading having income < ₹ 50k p.m Ratings in BFSI Sector ’ 88%

  7. Slide 7: Our Journey

    Our Journey CARE Rating CARE / ICRA Rating BBB- BBB+ A- A+ AA- AA- Assets Under Management (AUM) ICRA & CARE Rating upgraded to ₹ 71,980 Mn AA- Stable Crossed 100 India Physical Branches Ratings: 1,00,000+ Assigned Customers Long Term 71,980 As of Mar’23 We got listed Credit Facilities W arburg Pinc

  8. Slide 8: Shareholding as on Apr’23

    Shareholding as on 28 Apr’23 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 20.1 AETHER (MAURITIUS) LIMITED (GIC)^ 13.3 TRUE NORTH FUND V LLP KEY INVESTORS % Holding 13.8% ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 28.6 20.1% MFS & AIFS % Holding* AETHER (MAURITIUS) LIMITED INVESCO IND

  9. Slide 9: Distinguished Board of Directors

    Distinguished Board of Directors Deepak Satwalekar Geeta Dutta Goel Anuj Srivastava Sucharita Mukherjee Chairman / Independent / Independent / Independent / Independent / Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Divya Sehgal Maninder Singh Juneja Na

  10. Slide 10: Experienced Management Team

    Experienced Management Team Manoj Viswanathan Ajay Khetan Gaurav Mohta Vilasini Subramaniam MD & CEO Chief Business Officer Chief Marketing Officer Head – Strategic Alliances Nutan Gaba Patwari Ramakrishna Vyamajala Abhijeet Jamkhindikar Chief Financial Officer Chief Human Resource Officer Business Head - M

  11. Slide 11: Meet Our Customers

    Meet Our Customers Formal Salaried Salaried Informal Salaried Self Employed Self Employed Customer 1 Age:44 / Location: KR Puram 70% Customer 2 Age: 32 / Location: Sayan 30% Customer 3 Age: 36 / Location: Avadi (suburbs of Bangalore) (suburbs of Surat) (suburbs of Chennai) Who are they? 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 primarily Inability to meet documentation NPS individuals (1) in the ₹0.5 -1.5 mn range requirements of traditional lenders 75%

  13. Slide 13: Distribution Strategy

    Distribution Strategy 0 -4 4-7 7 - 15 Contribution to India's GDP FY’22 ( %) Pan India Distribution driven by strategic market selection & contiguous expansion Existing branches - 111 New branch locations - 48 Digital branches - 106 111 119 13 265 Geographic Expansion Branches Districts States/UT To

  14. Slide 14: Omni Channel Lead Generation Strategy

    Omni Channel Lead Generation Strategy Diversified lead generation channels |Q4 FY23 76.2% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 8.8% by HomeFirst RMs. 2.7% 2.0% 4.0% 3.7% 0.2% 1.3% 1.1% Construction Digital Digital Const

  15. Slide 15: Data Science Backed Centralised Underwriting

    Data Science Backed Centralised Underwriting Risk Management Design Tech-Led Centralised Salaried customers 100+ data points & digitally Consistency in underwriting Loans Approved within 48hrs captured data for all customers Build detailed understanding of customer via field visits by RM API integrat

  16. Slide 16: Scalable Operating Model built on Holistic Technology Usage

    Scalable Operating Model built on Holistic Technology Usage Recent Tech Interventions • E-NACH • E- Sign Home First App for all API Integration with third party Data on Cloud Digital marketing on major stakeholders databases • E- Vault online media o Integrated CRM and loan 360 view of customer for

  17. Slide 17: Digital Adoption

    Digital Adoption % Customers registered on App Unique user logins as % of Customer Rating on Google active customers Playstore 80% 84% 87% 91% 93% 4.2 54% 54% 57% 55% 57% As of 25 Apr’23 Average payment per user on app Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 ₹31,901 For

  18. Slide 18: ESG at HomeFirst

    ESG at HomeFirst Putting sustainability at core of operations

  19. Slide 19: Commitment to ESG

    Commitment to ESG ESG Framework The Company understands An ESG Execution Team the growing importance of with management team ESG and has adopted a participation has been created Board approved ESG Policy to ensure implementation of the ESG Policy Comprehensive Robust Policy & Implementation Governan

  20. Slide 20: Digital Processes from start to finish to reduce Carbon Footprint

    Digital Processes from start to finish to reduce Carbon Footprint Customer App Connector App RM Pro App Green Operations Operational Eco-efficiency & Climate Resilience HomeFirst has a deeply ingrained Ideology of all processes being paperless across the product cycle. Implemented Electronic process

  21. Slide 21: Progress on Social Development

    Progress on Social Development Responsibility towards community Responsibility towards employees Project “Sashakt”, an initiative by HomeFirst to bring an all- Certified as “Great Place To Work” by GPTW around improvement in the social, health and economic status Institute for 3 successive years of

  22. Slide 22: Progress on Social Development

    Progress on Social Development Responsibility towards customers ESG Initiatives conducted during the year Customer Satisfaction Sustainable Finance • Customer focus: Playing a key role in Financial inclusion • Funds raised from IFC to finance affordable housing and green housing. HomeFirst raised Rs

  23. Slide 23: Strong Governance Structure

    Strong Governance Structure Work Sustainably & Ethically Governance at core Separate Chairman & Managing Director position Sustainable Finance Corporate Governance We promote Financial Inclusion. • Core competencies of Independent Directors directly relevant to company’s operations. Experienced Boar

  24. Slide 24: Strong Governance Practice

    Strong Governance Practice Corporate Governance Structure Top-tier Corporate Governance • High Independent Directors representation in all Board Committees • Highly experience Board & Management Team on Risk Management committee. • Company's risk management framework is driven by its Board and its s

  25. Slide 25: Business Updates

    Business Updates

  26. Slide 26: Healthy Growth in Loan Book and Disbursements

    Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 5 Years Last 5 Quarters 8,691 7,804 6,612 7,022 All time high disbursement in the quarter, 6,411 30,129 q-o-q growth of 11.4% 20,305 15,728 16,183 10,966 FY19 FY20 FY21 FY22 FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Assets Under M

  27. Slide 27: Consistent Portfolio Metrics | Mar’23

    Consistent Portfolio Metrics | Mar’23 11% 30% 1% AUM by Occupation AUM by Product Salaried Housing Loan Shop Loans Self Employed LAP Sharp focus on High ratio of 88% housing loans 70% salaried customers 80% 2% 11% 20% AUM by Credit history 9% AUM by Ticket Size Upto 0.5mn AVG: 742 Have Credit Histor

  28. Slide 28: Competitive Spreads

    Competitive Spreads Portfolio Yield Net Interest Spread Movement COB Spread Yields increased by 25bps w.e.f 1st Jul’22 Last 5 Years Last 5 Quarters 50bps w.e.f 1st Dec’22 50bps w.e.f 1st Apr’23 13.1% 13.1% 13.4% 12.9% 13.0% 12.8% 12.8% 12.7% 13.0% 12.3% Competitive Cost of Borrowing 8.8% 8.4% 8.0% 7

  29. Slide 29: Healthy Leading Indicators

    Healthy Leading Indicators Bounce rate :On the day of EMI presentation Bounce rate Bounce rates normalising COVID COVID WAVE -1 WAVE -2 36.4% 28.3% 20.1% 17.3% 18.3% 16.5% 15.7% 15.6% 14.5% 14.0% 14.9% 14.6% 13.6% 10.0% 10.9% 10.5% 9.5% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22

  30. Slide 30: Healthy Leading Indicators

    Healthy Leading Indicators Collection Efficiency Collection Efficiency (1) Collection efficiency trending back to Unique Customers (2) normal levels 98.0% 98.8% 98.9% 98.7% 98.5% 99.3% 99.4% 99.4% 97.8% 98.2% 98.4% 98.8% 98.4% 98.5% 98.0% 96.9% 97.2% 97.1% 97.5% 97.3% 97.2% 96.9% 97.3% 97.4% 97.4% 97.3% 9

  31. Slide 31: Sound Credit Indicators

    Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS 6.2% Improvement 5.3% 5.3% 5.0% 4.1% 4.7% 3.7% 3.7% 3.5% 4.4% 4.4% 3.3% continues in 4.0% 4.0% 3.0% 2.7% 3.2% 1.8% 2.7% 1.7% 2.0% 2.3% 2.3% 2.1% 1.9% 1+ & 30+ DPD 1.6% 1.8% 1.6% 0.8% 1.0% 2.3% 0.9% 0.9% 1.4% 1.1% 1.4% 1

  32. Slide 32: Diversified funding profile at competitive Cost of Borrowing

    Diversified funding profile at competitive Cost of Borrowing DA & Co-lending NCD Borrowings Mix and Cost of Borrowing trend NHB Refinance Total Borrowings NBFC 38,193 39,322 40,039 40,150 44,919 48,387 52,281 58,009 59,556 (₹Mn) (1) Public Sector Banks Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22

  33. Slide 33: ALM Position as of Mar’23 - Cumulative

    ALM Position as of Mar’23 - Cumulative Inflow Outflow Surplus 6,307 7,595 8,800 12,854 24,309 20,408 (₹Mn) 1,13,805 Robust ALM profile ensuring 93,397 sufficient liquidity 89,873 buffers 65,564 61,755 Cumulative 48,901 Positive flows across all the time buckets 29,028 19,881 20,228 14,092 12,286 7,785 0-3m

  34. Slide 34: Assignment and Co-lending Transactions

    Assignment and Co-lending Transactions Direct Assignment Transactions Co-Lending Transaction ₹3,574 Mn ₹3,003 Mn ₹4,646 Mn ₹3,784 Mn Consistent demand for assignment 1,844 of the company’s portfolio 1,491 1,472 1,183 1,273 1,159 1,140 1,154 1,050 879 857 894 Generated 348 77 166 business from 611 30

  35. Slide 35: Strong Liquidity Position

    Strong Liquidity Position Liquidity Buffer as on Mar’23 (in ₹Mn) Unencumbered Cash and Cash equivalent 5,373 Un-availed Sanction from NHB 6,000 (*) Un-availed Sanction from Banks 6,645 Total 18,018 Particulars (in ₹Mn) Q1FY24 Q2FY24 Q3FY24 Q4FY24 ₹ 36,175 million Opening Liquidity 18,018 18,654 19,27

  36. Slide 36: Financial Updates

    Financial Updates

  37. Slide 37: Financial Highlights

    Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 1508 3281 3450 32 53 32 8 18 29 53 ( ₹Mn ) 2,283 (1) 1,741 18,173 18,173 16,856 17,483 Robust NW to Strong profit growth 15,737 15,737 16,279 13,805 support growth 1,001 796 (1) 9,334 543 587 640 457 482 512 5,227 FY19 FY20

  38. Slide 38: ECL Provisions Summary

    ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Mar’23 Loans – Principal Outstanding 58,890.8 656.5 973.9 60,521.2 ECL Provision 164.4 69.1 330.7 15.1 579.3 Net Loans – Principal Outstanding 58,726.4 587.4 643.2 59,941.9 ECL Provision % 0.3%

  39. Slide 39: Annexures

    Annexures

  40. Slide 40: Quarterly and Annual Profit and Loss Statement

    Quarterly and Annual Profit and Loss Statement Particulars (in ₹Mn) Q4FY23 Q3FY23 Q4FY22 QoQ YoY FY23 FY22 YoY Interest Income on term loans 1,937.2 1,800.7 1,310.3 7.6% 47.8% 6,825.0 4,770.5 43.1% Net gain on DA 112.0 76.0 138.2 380.4 678.4 Income other than interest income on term 750.6 508.2 263.

  41. Slide 41: RoE Tree

    RoE Tree Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Interest Income on term loans / Average total assets 11.7% 11.5% 10.8% 11.5% 9.9% Net Gain on DA / Average total Assets 0.7% 0.5% 1.1% 0.6% 1.4% Income other than interest income on term loans/ Average total assets 1.6% 1.1% 0.9% 1.3% 1.1% Total

  42. Slide 42: Key Financial Ratios

    Key Financial Ratios Particulars Q4FY23 Q3FY23 Q4FY22 FY23 FY22 Profit after tax on average total assets (ROA) 3.9% 3.8% 4.0%(1) 3.9% 3.6%(1) Leverage (Average total assets / average Equity 3.7 3.6 3.2 3.5 3.3 or average Net worth) Profit after tax on average equity or average Net 14.4% 13.7% 12.5%(

  43. Slide 43: Balance Sheet

    Balance Sheet Particulars (in ₹Mn) FY23 FY22 ASSETS Cash & cash equivalents and Other bank balance 2,984.1 6,678.5 Loans 59,957.0 43,048.7 Investments 2,808.0 0.0 Other financial assets 1,241.0 1,164.8 Property, plant and Equipment* 253.5 200.0 Deferred Tax Assets (Net) 28.3 0.0 Non-financial assets

  44. Slide 44: Consistent Financial Performance over the years

    Consistent Financial Performance over the years Particulars (in ₹Mn) FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR % Operational Information Number of Branches 36 42 60 68 72 80 111 Loan disbursals 4,244 7,455 15,728 16,183 10,966 20,305 30,129 AUM 8,473 13,559 24,436 36,184 41,411 53,803 71,980 42.8% Num

  45. Slide 45: Experienced and Diverse Board

    Experienced and Diverse Board Mr. Deepak Satwalekar Ms. Geeta Dutta Goel Mr. Anuj Srivastava Chairman/ Independent/ Non-Executive Director Independent/ Non-Executive Director Independent/ Non-Executive Director Mr. Deepak Satwalekar was associated with HDFC Limited as a Ms. Geeta Dutta Goel is Count

  46. Slide 46: Thank You

    Thank You For further information, please contact Company CIN: L65990MH2010PLC240703 Mr. Manish Kayal, Head - Investor Relations manish.kayal@homefirstindia.com Investor Relations - HomeFirst investor.relations@homefirstindia.com

  47. Slide 47: Glossary

    Glossary Terms Explanation Assets Under Management/Gross Loan Assets represents the aggregate of current principal AUM - Assets Under Management outstanding and overdue principal outstanding, if any, for all loan assets under management which includes loan assets held by the Company as of the last d

  48. Slide 48: ——— For 5-star rating you pay more when you buy!

    ie! | ——— For 5-star rating you pay more when you buy! Didn't you bargain? But your monthly electricity bills are much You rever:check:the' star) I bought the same size lower because they are energy efficient! ratings. Always in a rush! recently for much Jal: Ae ‘x \% y) 5 “€ Vie Goes stars are not

Home First Finance Company India — Q4 FY23 Earnings Presentation on 6ix