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

Cholamandalam Investment And Finance — Investor Presentation (March 2024)

108 slides from Cholamandalam Investment And Finance's investor presentation, March 2024

1. Slide 1: Corporate Presentation - March 2024

   CORPORATE PRESENTATION - March 2024

2. Slide 2: Table of Contents

   Table of Contents 1. Group 2. Corporate 3. Financial 4. Business overview overview performance segments' overview 5. Funding 6. Subsidiaries 7. Environmental 8. Risk 9. Information performance Social Governance Management Technology profile 2

3. Slide 3: Murugappa Group Overview

   Murugappa Group Overview 3

4. Slide 4: Murugappa Group in a Nutshell

   Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $42.0 Turnover cap (as on 31st Years Existence B B (FY23) Mar 2024) Listed 3 Sectors 29+ Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 4

5. Slide 5: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 41,367 96,261 1,18,087 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 31,681 9,686 24,097 72,164 97,151 NA 20,936 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,156

6. Slide 6: Corporate Overview

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7. Slide 7: 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

8. Slide 8: Cholamandalam Investment & Finance Company Limited

   Cholamandalam Investment & Finance Company Limited 36.4 lakh + customers 54,098 employees Helping customers enter a better life Experienced team to serve more customers 3.5 lakh customers in year 2010 to 36.4 lakh plus customers till date 980 plus employees in year 2010 to 54,000+ employees today Rs

9. Slide 9: Our journey so far

   Our journey so far FY 2024 FY 2022 - 23 FY 2021 FY 2016-20 2024 • Total AUM crossed 2022 ₹1.5 lakh Cr. FY 2010-15 2021 • Launched • LAP platform Consumer & Small 2016 • Increased branch • New LEAP LOS Digital platform digitization Enterprise Loan FY 1979-2010 network to 1387. (CSEL), Secured 2011 20

10. Slide 10: Highlights – Q4FY24 & FY24 (I)

    Highlights – Q4FY24 & FY24 (I) Particulars Q4FY24 Vs Q4FY23 FY24 Vs FY23 Disbursement at Rs.24,784 Cr, a growth of Disbursement at Rs.88,725 Cr, a growth of Disbursement 18%. 33%. Business AUM Rs. 1,45,572 Cr in Q4 FY24 registering a growth of 37%. NIM Maintained at 7.8% 7.5% as compared to 7.7% PBT

11. Slide 11: Highlights – Q4FY24 & FY24 (II)

    Highlights – Q4FY24 & FY24 (II) Particulars Q4FY24 Vs Q4FY23 FY24 Vs FY23 • Well-diversified product portfolio spread across 1334 branches PAN India • Focused on financing of CV, PV, 2W, Tractor and Construction equipment in both VEHICLE FINANCE new and used segments. Overview • Our focus continues

12. Slide 12: Highlights – Q4FY24 & FY24 (II)

    Highlights – Q4FY24 & FY24 (II) Particulars Q4FY24 Vs Q4FY23 FY24 Vs FY23 • The product suite includes Supply chain financing, Term loans for capex, Loan against shares, SME Funding on hypothecation of machinery for specific industries. Servicing out of 75 (co-located) Overview locations with busine

13. Slide 13: Highlights – Q4FY24 & FY24 (III)

    Highlights – Q4FY24 & FY24 (III) New Business Particulars VF LAP HL Chola Businesses Enablers No of Employees 37017 4847 5829 5025 1380 54098 No of Branches 1334 *779 *668 *650 *6 1387 No of Customers 2324354 53951 106581 1150938 NA 3635824 *771 LAP, 630 HL and 649 new businesses branches are co-loc

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 2 years Medium (SENP) Focused by via LAP business since the last 18 years Small (SENP & SEP) Focused by via CSEL business | 2 years Mini (SENP) Focused by via SBPL| 2 y

15. Slide 15: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Mutual Top Domestic Institutional Holding Bodies Funds 0.76% • Axis Mutual Fund 17.04% • SBI Mutual Fund • HDFC Mutual Fund Public 5.44% • Aditya Birla Sun Life Mutual Fund Promoters 50.35% • Canara Robecco Mutual Fund

16. Slide 16: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (7) 571 593 545 516 540 Punjab (28) Himachal Pradesh (17) Chandigarh (1) 1191 1204 1267 1309 1387 Uttarakhand (20) Haryana (41) Sikkim (2) Arunachal Delhi (6) Pradesh (1) Rajasthan (101) UP (91) Assam (36) FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Physical Branch

17. Slide 17: Financial Performance

    Financial Performance Petey GMT SM ) Daan if Fi, ld Wh “sath Hn" | uA ot (Wied ig wir

18. Slide 18: Financial Snapshot — 15 Years

    Financial Snapshot —15 Years Recovery and Stabilsation COVID New Growth FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR CAGR CAGR Financials Snapshot YoY (10 (15 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS INDAS (5 years) years)

19. Slide 19: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 88,725 1,074 6,362 0.03% 1% 1% 8,106 5% 6% 5% 6% 8% 2% 2% 5% * 66,532 2% 9% 9% 451 11,281 13% 14% 3,830 10% 16% 13% 6,388 13,554 6,865 14% 15% * 35,490 9,299 11 * 29,091 1,896 * 26,043 1,926 1,505 80% 78% 1,542 682 537 72% 624 5,536 48,348 3,662

20. Slide 20: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,45,572 1,404 0.01% 1% 1% 13,404 7% 6% 6% 8% 4,977 1% 1% 9% 1% 3% * 1,06,498 11,430 5% 3% 21% 21% 8% 444 22% 8,451 29,859 20% 3,550 21% * 76,907 5,527 11 * 69,996 5,590 21,588 * 60,549 1,058 4,

21. Slide 21: Disbursement & Portfolio Mix – FY24

    Chola – Disbursement & Portfolio Mix – FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler 1% SBPL 1% 2 Wheeler 1% SBPL SME SME 2 Wheeler 5% 4% 1% 9% CSEL 3% 7% HL CSEL 9% Us ed Vehicles Us ed Vehicles 13% 17% 18% Tra ctor Tra ctor

22. Slide 22: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *19,557 168 3423 *14,296 2666 164 *11,708 164 2147 *9,560 *8,172 164 19,388 164 1515 14,132 11,543 1052 9,396 8,008 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Reserves and Surplus Equity Share Capital Note on Networth 22 FY20 –

23. Slide 23: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.9% 7.7% 3.0% 3.1% 7.3% 7.5% 6.9% 2.8% 2.6% 2.3% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 2.0% 3.9% 3.8% 3.4% 1.6% 3.0% 2.7% 1.2% 1.0% 0.9% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 23

24. Slide 24: Shareholders' Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 20.6% 20.6% 41.2 20.4% 16.9% 32.5 15.2% 26.2 18.5 13.4 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 P/E Ratio P/BV Ratio 30.2 5.0 5.0 4.8 27.5 28.1 4.4 23.5 11.4 1.5 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 24 Not

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

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 13,329 20,015 14,623 21,542 17,559 22,383 21,020 24,784 18% 66,532 88,725 33% Closing Assets - Managed 86,703 1,22,75

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

    Balance Sheet (As per IND AS) ₹ Cr Particulars Mar22 Mar23 Mar24 ASSETS Financial Assets 81,081 1,12,075 1,53,770 Cash and Bank balance 4,220 2,961 4,320 Derivative financial instruments 187 273 248 Receivables 128 191 399 Loans 74,149 1,04,748 1,44,424 Investments 2,076 3,628 4,137 Other Financial

27. Slide 27: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Mar23 Mar24 Mar23 Mar24 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,07,077 1,46,945 100.0% 100.0% Sta ge 1 99,913 1,40,078 93.31% 95.33% Sta ge 2 3,943 3,222 3.68% 2.19% Sta ge 3 3,222 3,645 3.01% 2.48% Provision 2,329 2,521 2.17% 1.72% Sta ge 1

28. Slide 28: Stagewise ECL Summary – Mar24

    Stagewise ECL Summary – Mar24 ₹ Cr Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,39,769 529 1,39,240 95.12% 0.38% 94.76% Stage 1B (B ) 309 12 297 0.21% 3.95% 0.20% Total Stage 1 (C ) 1,40,078 541 1,39,537 95.33% 0.39% 94.96% - Stage 2A (D ) 1,971 161 1,810 1.34

29. Slide 29: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise ₹ Cr Closing Gross Stage 3 ECL Provision Net Stage Net Asset Class Asset Stage 3 Asset % Provision Coverage 3 Stage 3% Mar24 1,46,945 3,645 2.48% 1,693 46.45% 1,952 1.33% VF 86,221 2,601 3.02% 1,218 46.84% 1,383 1.60% LAP 29,494 718 2.43% 339 47.18% 379 1.29% HL 13,148 12

30. Slide 30: Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Mar24 is at 3.54% and 2.32% respectively. 30

31. Slide 31: Business Overview

    Business Overview 31

32. Slide 32: Vehicle Finance

    Vehicle Finance

33. Slide 33: Vehicle Finance: Q4FY24 & FY24 Performance

    Vehicle Finance: Q4FY24 & FY24 Performance • Disbursements grew by 6% in Q4FY24 to Rs. 12,962 Cr & by 22% in Disbursements FY24 to Rs. 48,348 Cr as compared to Q4FY23 & FY23 respectively. Assets under • AUM has grown by 26% YoY. management Loss and • Loan losses at 0.5% in Q4FY24 from 0.4% in Q4FY23

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 (LCV) segment had a de- ▪ We will continue our focus in this segment in line with growth of 2% in Q4 FY’24 & 3% growth as of YTD macro economic environment and industry growth. Mar’24 which

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 ▪ We will continue our focus in this segment in line growth of 11% in Q4 FY’24 and 8% as of YTD Mar’24 with market demand and retail sentiments. with an all-time high sal

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 (CE) segment had a ▪ Our exposure in this segment is around 7% at a growth of 14% in Q4 FY’24 and 23% as of YTD portfolio level. Our focus is to build a quality Mar’24. After two years of con

37. Slide 37: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola YoY growth rate (19%) Chola 4 year (in Units) CAGR 5% Chola YoY growth rate 0.4% (in Units) CAGR 18% 736778 256291 Industry YoY growth CAGR @ 10% rate -6% CAGR @ 5% 200811 188283 457481 469709 176381 143

38. Slide 38: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola 4 year Chola YoY growth rate 19% (in Units) Chola 4 year Chola YoY growth rate (10%) CAGR 30% 6276512 CAGR 48% (in Units) CAGR @ 10% 478434 CAGR @ 10% 4226793 3897220 297070 301839 3074383 2713470 197641 128353

39. Slide 39: Vehicle Finance—Business Model & Positioning (CV, PV)

    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 (Tractor, CE)

    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 – FY24

    Vehicle Finance - Disbursement/Portfolio Mix – FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadar and Dadar and Nagar Haveli Nagar Haveli & Daman and & Daman and MP Diu AP Diu MP AP Maharashtra 0.04% Karnataka Maharashtra 0.04% Karnataka 5% 5% 7% Kerala 5%

42. Slide 42: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY24

    Vehicle Finance - Disbursement/Portfolio Mix – Q4FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 3 Wheeler HCV CE 7% CE 3 Wheeler 7% 1% 7% 1% 6% LCV 2 Wheeler LCV 2 Wheeler 16% 9% 20% 6% MUV 11% Used Vehicles MUV 27% 10% Used Vehicles 34% CAR

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

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise 7% 6% 5% 6% 6% 5% 5% 5% 7% * 12,962 9% * 12,190 * 12,354 * 11,731 816 16% 15% Low Yield * 11,301 738 17% 16% 882 914 627 613 18% 1,053 653 640 584 10% 10% 1,853 2,048 9% 11% 1,860 9% 2

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

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 84,498 7% 7% 7% 7% 7% * 79,640 5,548 7% 7% 7% 7% 7% * 75,396 * 71,065 5,201 5,670 * 66,938 4,906 5,221 4,721 21% 21% 21% 20% 20% Medium Yield Low Yield 5,058 4,487 4,878 16,660 4,742 15,872 1

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

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 84,498 42 48,348 * 66,938 39,699 215 *52,881 *50,415 693 *44,206 1,479 84,456 25,439 2,056 23,387 66,723 20,249 48,937 52,187 42,150 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On Boo

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

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 11,274 2,532 2,272 8,851 2,054 7,721 7,440 6,624 1,287 945 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 46

47. Slide 47: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.8% 8.4% 3.3% 7.8% 3.3% 3.2% 7.7% 3.0% 7.2% 2.7% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 4.1% 2.5% 3.9% 3.4% 1.9% 2.7% 1.4% 2.2% 1.2% 1.2% FY20 FY21 FY22 FY23 FY24 FY20 FY21 F

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

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 8,562 11,301 8,502 11,731 10,446 12,354 12,190 12,962 6% 39,699 48,348 22% Closing Assets - Managed 55,37

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

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4 FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 8,562 11,301 8,502 11,731 10,446 12,354 12,190 12,962 6% 39,699 48,348 22% Closing Assets (On B/S) 54,82

50. Slide 50: Loan Against Property

    CO eee ets Loan Against Property

51. Slide 51: Loan Against Property – Q4FY24 & FY24 Performance

    Loan Against Property – Q4FY24 & FY24 Performance • Disbursements grew by 55% in Q4FY24 to Rs. 4,273 Cr & by 46% in Disbursements FY24 to Rs. 13,554 Cr as compared to Q4FY23 & FY24 respectively. Asset under • AUM has grown by 38% YoY. management • Loan losses dropped to -0.3% in Q4FY24 from 0.5% in

52. Slide 52: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to register 24-26% growth • Chola’s LAP team is focusing on increasing its market in FY24. Similarly, strong growth is anticipated in fiscal 2025, share backed by consistent disbursement growth

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) * 29,859 13,554 823 * 21,588 1,114 9,299 * 16,795 * 14,777 1,544 * 12,960 29,036 2,062 2,425 5,536 20,474 15,250 3,662 3,627 12,716 10,536 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 F

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) 973 3,208 759 2,292 1,807 1,642 469 1,479 306 244 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 54

55. Slide 55: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.5% 5.5% 1.8% 4.9% 4.3% 1.4% 3.8% 1.2% 1.1% 1.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 4.0% 3.9% 1.1% 3.0% 0.7% 2.2% 2.0% 0.7% 0.1% -0.2% FY20 FY21 FY22 FY23 FY20 FY2

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

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 2,036 2,679 2,246 3,192 2,255 3,409 2,762 4,273 55% 9,299 13,554 46% Closing Assets - Managed 17,67

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 FY23 Q1 FY24 Q2 FY23 Q2FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 2,036 2,679 2,246 3,192 2,255 3,409 2,762 4,273 55% 9,299 13,554 46% Closing Assets (On B/S) 16,257

58. Slide 58: Home Loans

    Home Loans

59. Slide 59: Home Loans – Q4FY24 & FY24 Performance

    Home Loans – Q4FY24 & FY24 Performance • Disbursements grew by 24% in Q4FY24 to Rs. 1,747 Cr & by 66% in Disbursements FY24 to Rs. 6,362 Cr as compared to Q4FY23 & FY23 respectively. Asset under • AUM have grown by 59% YoY. management • Loan losses at -0.04% in Q4FY24 from -0.3% in Q4FY23 & has Loss

60. Slide 60: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • The overall growth in HFCs is expected to remain at • Chola continues to leverage its strength in reaching 12-14% in FY25 out to lower and middle-income borrowers across the country, penetrating to smallest villages and towns. • GNPAs o

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

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *13,404 356 6,362 *8,451 433 3,830 *5,590 13,048 *4,345 527 *3,125 620 8,018 1,896 677 1,542 5,063 3,726 1,505 2,449 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 On Book Assigned * Total AUM

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

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,756 489 321 971 222 692 519 357 112 64 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 62

63. Slide 63: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.8% 4.1% 7.7% 8.0% 7.0% 6.1% 2.8% 2.9% 2.4% 2.2% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 1.5% 4.8% 4.5% 4.5% 3.1% 0.9% 0.8% 2.5% 0.3% 0.2% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22

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

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 (YTD) Q4-o-Q4 Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 1,405 1,747 24% 3,830 6,362 66% Closing Assets - Managed 5,938 9,528 6,454 10,

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

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4FY23 Q4FY24 FY23 FY24 Q4-o-Q4 Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 1,405 1,747 24% 3,830 6,362 66% Closing Assets (On B/S) 5,438 9,115 5,976 10,409 6,8

66. Slide 66: New MSME Businesses

    MS NEW MSME BUSINESSES

67. Slide 67: Profit and Loss Statement – New Businesses

    Profit and Loss Statement – New Businesses ₹ Cr CSEL SME SBPL Growth % Growth % Growth % Particulars FY23 FY24 (YTD) FY23 FY24 (YTD) FY23 FY24 (YTD) Y-o-Y Y-o-Y Y-o-Y Disbursements 6,865 11,281 64% 6,388 8,106 27% 451 1,074 138% Closing Assets - Managed 5,527 11,430 107% 3,550 4,977 40% 444 1,404 21

68. Slide 68: Funding Profile

    ih onda (CCT Corres tana

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

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 1,23,103 * 1,34,474 * 97,356 * 1,08,140 * 1,19,470 1% 2% 4% 4% 6% 2% 3% 2% 3% 7% 5% 2% 3% 3% 10% 3% 3% 15% 4% 16% 18% 17% 4% 3% 4% 2% 2% 4% 16% 5% 5% 7% 14% 12% 11% 11% 54% 49% 49% 48% 46% 5% 5% 4% 4% 4% Q4 FY23 Q1FY24 Q2

70. Slide 70: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 97,356 * 1,08,140 * 1,19,470 * 1,23,103 * 1,34,474 4% 4% 5% 5% 7% 10% 15% 16% 17% 18% 1%3% 3% 1% 3% 3% 3% 0.4% 2% 1% 3%2% 3% 1% 4% 61% 56% 57% 54% 52% 1% 1% 1% 1% 6% 6% 6% 6% 1% 7% 8% 7% 8% 8% 5% 3% 3% 3% 3% 3% Q4 FY23 Q1FY

71. Slide 71: ALM Statement as of 31st Mar 2024 (As per IND AS)

    ALM Statement as of 31st Mar 2024 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2024 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 5,493.73 1.66 7.70 24.43 231.16 1,422.56 717.38 - 7,898.62 Advances 5,448.61 4,912.02 4,083.00 13,745.

72. Slide 72: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 19.07 18.57 17.13 5.41 3.93 3.13 3.47 2.35 15.28 15.14 16.49 14.78 15.10 FY20 FY21 FY22 FY23 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Tier 2 includes 1.58% % of CCD which is comp

73. Slide 73: Consolidated Financials

    Consolidated Financials 73

74. Slide 74: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 Q4 FY23 Q4FY24 FY23 FY24 Q4-o-Q4 Y-o-Y Income 2,796 4,171 3,067 4,695 3,408 5,055 3,835 5,499 43% 13,106 19,420 48% Expenses 2,032 3,215 2,305 3,630 2,482 3,898 2,672 4,071 52% 9,491 14,815

75. Slide 75: Risk Management

    Risk Management 75

76. Slide 76: Our Enterprise Risk Management strategy comprehensively covers all aspects of risk

    Our Enterprise Risk Management strategy comprehensively covers all aspects of risk 1 Risk vision Risk Pillars 2 3 4 5 6 7 Key Cyber & Regulatory Capital & emerging Credit Fraud Data & Liquidity risks- risk risk security Complianc risk climate, risk e risk social etc. 7 Risk organization 8 Risk gover

77. Slide 77: We have integrated best-in-class practices across all key risk areas (I/II)

    We have integrated best-in-class practices across all key risk areas (I/II) Category Key Highlights Risk vision • Risk Appetite Statement implemented as a strategic lever: Strong linkage to functions with well-defined 1 thresholds and robust governance mechanisms Capital & • Well-diversified source

78. Slide 78: We have integrated best-in-class practices across all key risk areas (II/II)

    We have integrated best-in-class practices across all key risk areas (II/II) Category Key Highlights • Built/ deployed robust capabilities, processes and toolkits to manage growing cyber risks 5 Cyber risk • Quarterly red-teaming & war gaming assessments; Regular phishing simulations & crisis manage

79. Slide 79: Capital & Liquidity risk | Well managed with judicious buffers

    Capital & Liquidity risk | Well managed with judicious buffers maintained consistently ALM: Stringent Internal thresholds Liquidity: LCR reported is 1.7-2x of RBI mandate on average Chola internal Distribution of reported LCR (FY24) Time bucket RBI​ thresholds thresholds RBI mandated minimum RBI man

80. Slide 80: Capital & Liquidity risk | Sufficient Tier 1 capital

    Capital & Liquidity risk | Sufficient Tier 1 capital Values in INR Cr Total RWA as on 31st Mar'24 Per regulatory guidance, Chola held 15.10% of 1,26,312 NBFCs to maintain atleast RWA as Tier I capital 10% of RWA as Tier I as on 31st Mar'24 capital ~Rs 2000 Cr maintained as CCD as ~2000 part of Tier-

81. Slide 81: Holistic risk management for credit risk mitigation

    Holistic risk management for credit risk mitigation Robust Business Decision Multi-faceted Proactive portfolio Matrix based on key criteria underwriting process monitoring at a customer level • Choosing right customer mix upfront for Input variables leveraged- • Rigorous non-starter/early default mo

82. Slide 82: Regulatory & compliance risk | Effective governance

    Regulatory & compliance risk | Effective governance augmented by a strong compliance function Governance & Compliance form the core of 20+ qualified independent compliance professionals every business and functional process with collective experience of 200+ years Strong ‘Compliance- first’ approach

83. Slide 83: Regulatory & compliance risk | Robust compliance mechanisms

    Regulatory & compliance risk | Governance further strengthened by robust compliance mechanisms Regular Independent Audit Annual review and approval of all Committee meetings held key policies by the Board Specific focus on review of compliance of policies and processes Monthly concurrent Internal Di

84. Slide 84: Cyber risk | Regular monitoring & strong internal processes

    Cyber risk | Regular monitoring & strong internal processes to prevent, detect & mitigate cyber risk People Process Tools & Technology •1 Well-equipped, adept 3 Continued effort towards 5• Continuous expansion of team of security strengthening protocols suite of tools to monitor professionals to mit

85. Slide 85: Risk governance & reporting

    Risk governance & reporting | Clearly defined roles & responsibilities for effective corporate governance Organization structure setup to ensure effective governance Well-defined tracking mechanism & review cadence 1 RCSA (Risk control and self-assessment) conducted across • Oversee the entire risk

86. Slide 86: Information Technology

    Information Technology 86

87. Slide 87: Chola's overall technology focus spread across all layers

    Chola's overall technology focus spread across all layers System of Engagements Direct to Customer LOS CRM Partner Integration (GB, Chola One) System of Records Loan Customer Management Collections Accounting Treasury Database Suite System of Intelligence Other Core Areas Copyright © 2021 by Boston

88. Slide 88: Organization-wide capabilities built for digitization of Loan Origination System

    Organization-wide capabilities built for digitization of Loan Origination System (LOS) Loan Underwriting Sourcing Disbursement journey & Loan Sanction Integration with OEMs Third party validations Document digitization Validated KYC via golden sources Automated bureau checks E-Sign Digitizatio eKYC

89. Slide 89: Comprehensive digital Collection Management System

    We have a comprehensive digital Collection Management System to manage end-to-end collection process Analytics Engine 1 (EWS) 10 Easy payment through Bitly link Allocation Rule Engine Customers 2 (Automatic allocation) 11 Real time view of MIS/reports 3 E-receipts (view/download) 12 Integrated conta

90. Slide 90: Chola One platform envisioned to be a super-app

    Chola One platform envisioned to be a super-app, a one-stop-shop for all our products, lead generation, VAS, customer service Organic Traffic One-stop shop for financial products One-stop shopPhase for financial 1 products (SEO) Lending Insurance & WM VAS • PL • LI • Credit CSEL Propensity • VF • HI

91. Slide 91: We are building an E2E integrated ecosystem for VF

    We are building an E2E integrated ecosystem for VF Used vehicle Monthly Avg. Unique SEO Score1 Page authority marketplace (out of 100) Users (score out of 100) • Vehicle listing for selling (site traffic) 92 1M+ 81 • Dealer info for buying New vehicle discovery "Used truck" Repo Subscribers New list

92. Slide 92: Data and Analytics team across the customer journey

    Our Data and Analytics team works across the entire value chain of customer journey EWS Model UW Scorecards mo A cc torin ou g ni nt nt Credit assessme Roll-forward Model Risk-based pricing l Cross sel Bureau enrichment & S al es for DPD customers Pre-approved offer Propensity models CIBIL Alerts ge

93. Slide 93: Environmental Social Governance

    Environmental Social Governance 93

94. Slide 94: Consecutively awarded for last 4 years

    Consecutively awarded for last 4 years……. FY21 • FTSE Russell - Included in FTSE4 Good Index series 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. FY23 • CRISIL ESG rating – ST

95. Slide 95: We Believe In Making A Positive Impact In The Society

    ESG POLICY We Believe In Making A Positive Impact In The Society Environmental Social Governance As an environmentally responsible To enable better opportunity for all, we The company has strong commitment company, we focus on sustainability and ensure financial inclusion of to values and ethical bu

96. Slide 96: ESG Vision & Mission

    § Chola Enter a better life ESG VISION & MISSION & RS Corporate oS LS Access to Governance fs) — : A Finance £ a ESG based Privacy & Data lending AG. Innovation Carbon -®». Waste ‘) Green Building ig murugappa 96

97. Slide 97: ESG Governance Structure

    ESG GOVERNANCE STRUCTURE Board - major policy and sustainability reports related Board to ESG CSR Committee –Chairman, an independent Director CSR and a non-executive Director to support and advise Committee Board on the company’s policies, strategies and programs related to ESG Internal working gro

98. Slide 98: Environment Consciousness

    ENVIRONMENT CONSCIOUSNESS  Policy for Sustainable Sourcing.  E-receipts are issued to customers in place of physical receipts.  Financing Electric Vehicles for a green and clean future – Rs 298 cr disbursed in FY 24 (Rs 91 Cr was disbursed in FY 23).  Adoption of SEMS – Socially & Environmentall

99. Slide 99: Social Responsibility

    SOCIAL RESPONSIBILITY CSR in Chola CIFCL is rooted towards its commitment for the social w.elfare. Rooted in a commitment to national development and inclusion, Chola exemplifies this ethos through its steadfast dedication to Corporate Social Responsibility (CSR) initiatives across India. FY 2023-24

100. Slide 100: Social Responsibility

     SOCIAL RESPONSIBILITY Number of Number of Number of States beneficiaries SDGs covered 611357 08 Number of 21 Districts Number of aspirational 79 (in ten projects districts years) 60 19 100 SDG – Sustainable Development Goals

101. Slide 101: Social Responsibility

     SOCIAL RESPONSIBILITY ▪ Livelihood skills • Ensure healthy lives • Ensure inclusive and • Training of players of for the and promote well- equitable quality blind women’s marginalized being for all at all education and promote football- 10 section ages lifelong learning • Female Golf Players- ▪ No.

102. Slide 102: Social Responsibility

     SOCIAL RESPONSIBILITY 6000.00 CSR Spent in Rs lacs 5686 5000.00 4363.1 4000.00 3643.87 3207.48 3000.00 2888.43 2307.10 2000.00 1755.71 1386.07 1000.00 1130.00 573.94 0.00 FY 2014- FY 2015- FY 2016- FY 2017- FY 2018- FY 2019- FY 2020- FY 2021- FY 2022- FY 20 15 16 17 18 19 20 21 22 23 24 CSR Spent ov

103. Slide 103: Social Responsibility Yearwise Thematic Allocation

     SOCIAL RESPONSIBILITY YEARWISE THEMATIC ALLOCATION (₹ Cr) 23 24 22 19 15 12 8 7 5 4 4 3 4 3 3 2 2 1 2 1 1 1 2 1 0 1 Health Education Rural Environment Disaster relief WASH Others Development Sustainability Project FY21 FY22 FY23 FY24 103 WASH – Water and Sanitation and Hygiene

104. Slide 104: Social Responsibility

     SOCIAL RESPONSIBILITY  Vehicle Finance: New to credit customers, women borrowers, low-income groups, electric vehicles, transport entrepreneurs in geographies with limited presence of banks & financiers.  Loan Against Property: Small business entrepreneurs for self-occupied residential property. 

105. Slide 105: Governance

     GOVERNANCE Governance Philosophy - “The fundamental principle of economic activity is that no man you transact with will lose; then you shall not.”  Adhere to corporate governance standards beyond the letter of law;  Maintain high degree of transparency and disclosures;  Maintain a clear distinct

106. Slide 106: Contact us

     Contact us Cholamandalam Investment and Finance Company Limited (Chola), Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Our registered Chennai - 600032. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–4090 7172 http://www.cholamandalam.com Sujatha P-Exec

107. Slide 107: 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

108. Slide 108: Chola Crest, Guindy, Chennai contact details

     Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. | Tel.: 044 4090 7172 | Fax: 044 4090 6464 | Email : customercare@chola.murugappa.com | Website : www.cholamandalam.com

Cholamandalam Investment and Finance Company — Investor Presentation (March 2024) on 6ix