Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Investor Presentation (March 2022)
57 slides from Au Small Finance Bank's investor presentation, Mar 10, 2022
Slide 1: Exchange filing cover letter
AU SMALL FINANCE BANK Ref. No.: AUSFB/SEC/2021-22/355 Date: 10th March 2022 To, National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai 400051, Mumbai 400001, Maharashtra. Maharashtra. NSE Sy
Slide 2: AU Insights
AU INSIGHTS ff AU SMALL FINANCE BANK ‘A SCHEDULED COMMERCIAL BANK 10 MARCH 2022
Slide 3: In this Presentation
In this 1 WHEELS INSIGHTS Presentation 2 HOME LOAN INSIGHTS Here's what we'll cover: 3 Q&A
Slide 4: Building a robust foundation to execute our strategy
Building a robust foundation to execute our strategy 01 02 03 04 05 06 07 08 09 10 TREASURY, SECURED MERCHANT FINANCIAL & BRANCH HOUSING COMMERCIAL DIGITAL CREDIT DCM & WHEELS BUSINESS SOLUTION DIGITAL BANKING LOANS BANKING BANKING CARD WHOLESALE LOANS GROUP INCLUSION DEPOSIT ⚬ ⚬ ⚬
Slide 5: Wheels
WHEELS AU INSIGHTS
Slide 6: India Story – Wheels (2 to 22 Wheeler)
India Story – Wheels (2 to 22 Wheeler) Capex - Rs. 7.5 Lakh Cr Aims to reduce pollution by scrapping 1 Cr units CV Segment – 8% (Jan’21) to 19% (Dec’21) PV Segment, <1% (FY18) to 7.6% (FY22) India’s Automobile Sector Contribution (FY2021) 1.88 Lakh Cr 3.5 Lakh Cr
Slide 7: Industry Opportunity & Outlook
Industry Opportunity & Outlook Units In Lakhs Growth% in CAGR ** India Pre-Owned Car Market Report- Frost & Sullivan ^ TMA and Mordor Intelligence
Slide 8: Wheels Opportunity - Penetration and Scope
Wheels Opportunity - Penetration and Scope New car finance penetration to increase * Cars Per Thousand Comparison (2019) New Car market penetration in Non-Metro to grow faster%* Metro Non - Metro
Slide 9: Used Car Ecosystem and Industry Transformation
Used Car Ecosystem and Industry Transformation Used Car Ecosystem* Used Car Finance pegged to grow* Used Car Industry: Transformation Used Car Market Penetration% on the rise in Non Metro* Metro Non - Metro
Slide 10: AU Foundational Business: Two Decades and Counting
AU Foundational Business: Two Decades and Counting (₹ in Cr.) 2004 - 2010 1996 - 2017 10.8 Years • • • 43 Years • • • • • • •
Slide 11: Transformation Journey: NBFC to Bank
Transformation Journey: NBFC to Bank Forever Journey of Banking Key learnings in our journey of building trust
Slide 12: SBU Architecture
SBU Architecture SBU Wheels Building Blocks
Slide 13: SBU Structure
Zz SBU Structure & Collection Head of Wheels au SMALL FINANCE BANK ‘A SCHEDULED COMMERCIAL BANK. Operations 7] Insurance ee ee ee ee NBH Wheels |] NBM Tractor nam aw — |}Head- Product! | cu pigital |] Lead- Sales & Communication Management | ot NBM, Channel Regional NBM New NBM Used - CV & Distribut
Slide 14: AU Wheels - Created a Diversified Space
AU Wheels - Created a Diversified Space • First Time Buyers • New and Used • Deep Distribution model • First Time Users • Rural, Semi-urban & Urban • Entire Product Suite • Last Mile / Intra-City Operators • Personal, Passenger & Loading • Vintage Leadership • Tour & Travels Operators • Earn & Pay,
Slide 15: Seasoned Retail Franchise
Seasoned Retail Franchise Active Loan Avg. Tenor Avg. EMI Avg. LTV ATS <10 Lakh ~6,70,000 40 Months ~Rs. 12k- 13k 80% 2.7 Lakhs 95% Customers
Slide 16: Diversified Retail Book
Diversified Retail Book Strong OEMs dominate in book Category Wise Book • Personal remains resilient • Focus on the OEM selection remains key • School buses (~2.5%) and Ola/Uber (<1%) • Models Categorization within OEMs • Passenger segment consists predominantly of Multipurpose vehicles
Slide 17: Product wise AUM trend
FINANCE BANK Zz Product wise AUM trend Sau "A SCHEDULED COMMERCIAL BANK. 5,396 Cr 7,133 Cr 10,224 Cr 12,861 Cr 14,823 Cr 15,525 Cr 0% 0% 1% 1% 2% . 2% Mar '17 Mar '18 Mar ‘19 Mar '20 Mar '21 : Dec '21 * New Products such as Tractor and 2W are gaining momentum. Bnew Miused Mitractor 2 Wheeler * Calib
Slide 18: Customer Distribution
Customer Distribution WHEELS OMNIPRESENCE ACROSS AU 12 463 862 74% 26% • •
Slide 19: State wise AUM Movement
State wise AUM Movement • • Relatively newer states reflect higher growth on account of a low base • Given market share, enough scope in existing states
Slide 20: Market Penetration and Scope
Market Penetration and Scope 2,15,000 Non-AU States Monthly TIV AU!! • • •
Slide 21: Customer Acquisition (Sourcing 9M FY22)
Customer Acquisition (Sourcing 9M FY22) EXTERNAL INTERNAL
Slide 22: Wheels Credit Structure
FINANCE BANK "A SCHEDULED COMMERCIAL BANK. Zz Wheels Credit Structure hon National Credit Head - Wheels NCM CV nal Field Officer fie
Slide 23: Segment Wise Underwriting
Segment Wise Underwriting PERSONAL COMMERCIAL TransUnion CIBIL Score Wise Customer Spread E. 651 - 700 13% 12% D. 601 - 650 5% 4% C . < = 600 2% 1%
Slide 24: Credit- Key Differentiators
Credit- Key Differentiators
Slide 25: Credit Risk Monitoring
Credit Risk Monitoring • • Early Delinquency (ED)- In Bucket 60+ before collection of 6 EMI • • PDD • •
Slide 26: Who Is My Customer?
Who Is My Customer? Customer paid us 22 EMI out of 36 and his repayment was regular during covid period also. Now
Slide 27: Who Is My Customer?
Zz Who Is My Customer? Personal Vehicle - Low Documented + Assessed ‘A SCHEDULED COMMERCIAL BANK. Transporter - Commercial Passenger au SMALL FINANCE BANK Mr. Amit is salaried person doing private job having salary of 20k. His mother is also living with him and getting pension income of 2ik Per mont
Slide 28: Collections: Key Differentiator
Collections : Key Differentiator SUPER SPECIALTY UNIT – RIGHT TREATMENT FOR EVERY CASE
Slide 29: Maintaining Asset Quality
Maintaining Asset Quality • • •
Slide 30: Managing the Pandemic
Managing the Pandemic • • • • • • •
Slide 31: Digital Wheels
Digital Wheels EXISTING IN PIPELINE
Slide 32: Two-Wheeler End to End Digital Journey
Two-Wheeler End to End Digital Journey 11 2 3 4 5 6 7
Slide 33: Customer Experience- AU0101 Journey for New Car (Pre-Approved)
Customer Experience- AU0101 Journey for New Car (Pre-Approved) 1 2 3 4
Slide 34: Customer Experience- AU0101 Journey for New Car (Customized)
Customer Experience- AU0101 Journey for New Car (Customized) 1 2 3 4
Slide 35: Looking into Future
Zz Looking into Future Ba Banking on the Bank 5x Customer Growth ‘A SCHEDULED COMMERCIAL BANK. Z Pull of the Bank In Bank, 1 Lakh Monthly Customers are £ Onboarded on ongoing basis 27% ETB Customers in YTD (Dec-21) sourcing Apr'l7 — Mar'22 Focus on Deepening Sustainability by Design @ Customer lifec
Slide 36: Summary
Summary • Strong India Story - Amrit Kaal + Harit Kaal • Growing opportunity in Used and New (especially in Rural Areas) • Big Headroom – Market share (enough room to expand) and New Geographies • Banking on the Bank • Tested Business Model- Sales, Credit, Product and Collection Architecture • Digit
Slide 37: Home Loan
HOME LOAN AU INSIGHTS
Slide 38: Industry Outlook
Industry Outlook Expected Growth of Real Estate Market In India • • SUB SECTORS US $ 1 Trillion 13% ~ 80% • • • • • • • • •
Slide 39: Significant opportunities for our Bank in housing loans
Significant opportunities for our Bank in housing loans • •
Slide 40: AU Home Loan - A decade long high-quality franchise
AU Home Loan - A decade long high-quality franchise ₹ ₹ ₹ ₹ ₹0.70 Cr AUM ₹ ₹ ₹ ₹ AUM
Slide 41: Our Competitive Strength
Our Competitive Strength • • • • • • • • • • • • • • • • • •
Slide 42: Diversified Portfolio For Diverse Needs
Diversified Portfolio For Diverse Needs 14.3 14.3 % % 14.3 14.3 % % 14.3 14.3 % % 14.3 % Housing portfolio includes Top-up loans
Slide 43: Sourcing Approach
BANK ‘A SCHEDULED COMMERCIAL BANK. Sourcing Approach Exploring Alternate channels Toh SSF DSA/ Referral ea LEVERAGING ON DIGITAL CALL CENTRE DEEPER PENETRATION IN BRANCH BANKING u LEVERAGING EXISTING BANK CUSTOMER 0) Dedicated RO with st Direct Sourcing - 70% wt ground oresence Srey) Sr 25000+ Emplo
Slide 44: Direct Sourcing driven by Strong Ground Connect
Direct Sourcing driven by Strong Ground Connect ENABLERS ACTIVITIES • Real Estate Agent Society Activity • Developer Business place activity • Builder Marketing Data • Contractor Activity • Insurance Advisor Tele-calling Leads • Hardware Shop Builder site activity • Cement Supplier Canopy activities
Slide 45: Significant room to grow within locations where AU is already present
Significant room to grow within locations where AU is already present
Slide 46: Portfolio details
Portfolio details ETB 23% & NTB 77% 62%
Slide 47: Cross-sell Opportunity
au Zz Cross-sell Opportunity Tl fa | Customer associated with Bank for Avg 18 years by virtue of Home loan [ey7————— Opportunity to Cross-sell A @ © Family Bankin Term Deposits / es Wy ing Recurring Deposits nsurar ‘A SCHEDULED COMMERCIAL BANK. —- = SIP/ Mutual Funds Vehicle Loan Credit Card a
Slide 48: SBU Structure - Home Loan
Zz SBU Structure - Home Loan SHau FINANCE BANK ‘A SCHEDULED COMMERCIAL BANK. HOME LOAN SBU fo) , (=) a= Aad - ili <a = genes S SALES CREDIT LEGAL TECHNICAL OPERATIONS COLLECTION Support Functions & Finance and P&L Management J J 1 Insurance & 1 J Technical Legal 3rd-Party Products £@ Human Resource
Slide 49: High Credit Orientation
High Credit Orientation • • • • • • •
Slide 50: Strong Credit Assessment Model
Strong Credit Assessment Model
Slide 51: Who Are My Customers
Who Are My Customers • • • • ₹ • ₹ • • • • • ₹ • • • ₹ • • • ₹ ₹ • •
Slide 52: Credit Risk Management
Zz Credit Risk Management Sia BANK "A SCHEDULED COMMERCIAL BANK. U id - ane End use and Asset verification Verification Non-starter & Early Delinquency monitoring with ownership at each level Post disbursal document management Construction Monitoring construction progress and partially disbursed cas
Slide 53: Digitalizing Home loan
Digitalizing Home loan • • • • • • •
Slide 54: AU Home Loan Digital Journey
AU Home Loan Digital Journey 1 2 3 4 5 6
Slide 55: Key Takeaways
BANK AU Zz Key Takeaways Basis our key competitive strengths including Bank, Brand, Vintage etc. we are strongly positioned to be amongst the leading and trusted housing finance originators in the country. Continue to focus on mass affluent clients mainly EWS/LIG and MIG customers and grow our custo
Slide 56: Disclaimer
Disclaimer This presentation has been prepared by AU SMALL FINANCE BANK LIMITED (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Ban
Slide 57: Thank You!
BADLAAV HUMSE HAI For Investor queries contact (details in QR Code): Prince Tiwari | Aseem Pant Thank You! Email: investorrelations@aubank.in
AU Small Finance Bank — Investor Presentation (March 2022) on 6ix