Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Debt Investor Presentation (November 2022)
29 slides from Creditaccess Grameen's debt investor presentation, November 2022
Slide 1: CreditAccess Grameen Limited Corporate Presentation
CreditAccess Grameen Limited Corporate Presentation November 2022 www.creditaccessgrameen.in
Slide 2: Disclaimer
Disclaimer DISCLAIMER: The Company, subject to market conditions, and other considerations, is proposing a public issue of secured redeemable non-convertible debentures (“NCDs”) and has filed a shelf prospectus dated November 4, 2022 (“Shelf Prospectus”) and tranche prospectus dated November 4, 2022
Slide 3: Discussion Summary
Discussion Summary Business Overview Business Model & Strategy Key Performance Highlights Issue Details www.creditaccessgrameen.in 3
Slide 4: Quick Snapshot
Quick Snapshot ✓ One of the Leading NBFC-MFIs in India headquartered in Bengaluru ✓ Joint Liability Group (JLG) based lending model focused on women predominantly in the rural areas of India ✓ Diverse product suite catering to entire customer life cycle ✓ Calibrated, contiguous district-based expans
Slide 5: Key Milestones
Key Milestones Entered in 5 new states – Jharkhand, Rajasthan, 2020 Gujarat, Uttar Pradesh, Bihar Successfully ✓ Strong commitment by CAI (CreditAccess India N.V.) completed the ✓ Independent, stable and professional management team 2019 76.08% Acquisition of Raised INR 350 Cr Madura Micro fresh equ
Slide 6: Corporate Structure
Corporate Structure CreditAccess India N. V (Promoter) 73.74% CreditAccess Grameen Limited (Publicly Listed) 76.31% 100% Madura Micro Finance Limited CreditAccess India Foundation 100% Madura Micro Education Private Limited # * Based on equity shareholding as on September 30’ 2022 # Madura Micro Edu
Slide 7: Promoter Background
Promoter Background Committed to Micro Finance Business Strong Financial Support • CreditAccess India N.V. (CAI) specialises in Micro and Small Enterprises financing • Invested through multiple rounds of capital funding along with • Widely held shareholding base across 253 shareholders. secondary pu
Slide 8: Shareholding Pattern
Shareholding Pattern Shareholding Pattern – September 2022 Others, 4.25 QIB, 2.45 MF & AIF, 10.23 FPI, 9.33 Promoter Group, 73.74 www.creditaccessgrameen.in 8
Slide 9: Credit Ratings
Credit Ratings September 30, CA Grameen FY22 FY21 FY20 2022 Credit Rating – CRISIL A+ (Positive) A+ (Stable) A+ (Stable) A+ (Stable) Credit Rating – ICRA A+ (Positive) A+ (Stable) A+ (Stable) A+ (Stable) Credit Rating – Ind-Ra AA- (Stable) A+ (Stable) A+ (Stable) A+ (RWN) Comprehensive Microfinance
Slide 10: Discussion Summary
Discussion Summary Business Overview Business Model & Strategy Key Performance Highlights Issue Details www.creditaccessgrameen.in 10
Slide 11: Business Strategies & Competitive Strengths
Business Strategies & Competitive Strengths 2 3 Calibrated Expansion Continuous Through Contiguous Technology District-Based Enhancement to Drive Approach Operational Efficiency 1 4 Customer Centric Key Differentiators Classical Joint Business Model Lending (JLG) Model 6 5 Experienced Senior Integra
Slide 12: Focus on Customer Centricity, Loyalty & Retention
Focus on Customer Centricity, Loyalty & Retention One Stop Shop providing Support to Various Lifecycle Needs of the Customer Loan Customer Centric Ticket Size Tenure Purpose Diverse product suite: Type Products (INR) (months) • Income generation, education, festival, medical, Business Investments an
Slide 13: Calibrated Expansion Through Contiguous District-Based Approach
Calibrated Expansion Through Contiguous District-Based Approach Systematic geography selection based on availability of infrastructure, competition, historical performance trend and growth potential Familiarity with demographics/ culture of nearby districts enables effective customer evaluation and
Slide 14: Continuous Technology Enhancement to Drive Operational Efficiency
Continuous Technology Enhancement to Drive Operational Efficiency Ensures Quick And Seamless Delivery of Need Based Financial Products and Services backed by Robust Technology Infrastructure High touch-high tech delivery model: • Digitized all customer touchpoints • Field staff equipped with handhel
Slide 15: Committed to Basics Through Classical JLG Lending Model
Committed to Basics Through Classical JLG Lending Model Microfinance loans are unsecured. JLG mechanism acts as security/ loan Fully aligned with new harmonized guidelines in collateral - terms of - ✓ Strong group bonding ✓ Formulation of Board approved policies ✓ Mutual support – both financial & e
Slide 16: Integrating Risk Management in Every Operating Process
Integrating Risk Management in Every Operating Process Microfinance is a Collection Business, hence Risk Management is Integral to Core Strategy and Operating Processes Contiguous Target Customer Employee Customer Employee District-based Customer Lending Model Engagement Incentive Due-Diligence Rota
Slide 17: Unique Human Capital, Internal Audit & Risk Controls
Unique Human Capital, Internal Audit & Risk Controls Well-Established Operational Structure Multi-Pronged Approach For Risk Management Business Heads Sound Understanding of Rural Market Internal Audit (IA): • IA frequency – 6 times in a year at branches, 4 times at RO, 4 times • Employees are predom
Slide 18: Discussion Summary
Discussion Summary Business Overview Business Model & Strategy Key Performance Highlights Issue Details www.creditaccessgrameen.in 18
Slide 19: Well-Diversified Presence Across India
Well-Diversified Presence Across India Our Presence as on Sep-22 14 States & 1 UT 333 Districts Q2 FY23 Branches 1,684 Branches Uttar Pradesh Karnataka 308 60 Maharashtra 294 Tamil Nadu 378 Rajasthan Bihar Madhya Pradesh 141 71 70 + 36 (MMFL) Other States & UT 563 Total 1,684 Gujarat West Bengal 57
Slide 20: Positive ALM Continues To Contribute Growth
Positive ALM Continues To Contribute Growth Positive ALM Mismatch (in Months) 26.49 22.55 22.48 22.59 18.09 17.65 15.61 15.72 FY20 FY21 FY22 Q2 FY23 Average Maturity of Assets Average Maturity of Liabilities www.creditaccessgrameen.in 20
Slide 21: Consolidated Historical Performance Trend 1/4
Consolidated Historical Performance Trend 1/4 Gross AUM (INR Cr) Branch Network Active Customers (‘000) CAGR 8% CAGR 18% CAGR -3% 16,599 1,635 4,055 3,912 1,424 3,824 13,587 1,393 11,996 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 www.creditaccessgrameen.in 21
Slide 22: Consolidated Historical Performance Trend 2/4
Consolidated Historical Performance Trend 2/4 Gross AUM – State-wise % Mix Branch – State-wise % Mix Active Customers – State-wise % Mix 8% 11% 11% 14% 15% 19% 8% 23% 24% 8% 7% 32% 8% 8% 20% 8% 19% 8% 8% 21% 27% 9% 25% 24% 27% 27% 24% 23% 21% 23% 22% 22% 21% 20% 20% 17% 40% 38% 36% 31% 30% 28% 21% 2
Slide 23: Consolidated Historical Performance Trend 3/4
Consolidated Historical Performance Trend 3/4 Total Revenues (INR Cr) Net Interest Margin (%) CAGR 27% Since MMFL acquisition 2,750 was completed on March 2,466 18, 2020, the 10.7% 10.9% 1,705 consolidated NIM for FY20 is not comparable FY20 FY21 FY22 FY20 FY21 FY22 PAT (INR Cr) EPS - Diluted (INR)
Slide 24: Consolidated Historical Performance Trend 4/4
Consolidated Historical Performance Trend 4/4 Repayment Rate % Asset Quality % Since MMFL acquisition 92.21% 93.19% 4.45% was completed on March 3.65% 18, 2020, the consolidated repayment 1.52% 1.44% rate for FY20 is not comparable 1.34% 0.41% FY20 FY21 FY22 FY20 FY21 FY22 Gross Stage 3 % Net Stage
Slide 25: Discussion Summary
Discussion Summary Business Overview Business Model & Strategy Key Performance Highlights Issue Details www.creditaccessgrameen.in 25
Slide 26: Issue Partners
Issue Partners Lead Manager Debenture Trustee Rating Agency Legal Counsel Banker to the issue Joint Statutory Auditors Deloitte Haskins & Sells & PKF Sridhar & Santhanam LLP RTA www.creditaccessgrameen.in 26
Slide 27: Key Highlights of the Issue
Key Highlights of the Issue Issuer CreditAccess Grameen Limited Type / Nature of the instrument Secured, Listed, Redeemable, Non-Convertible Debentures Credit Ratings / Rating of the INDAA-/Stable for an amount of INR 1,500 crores by India Ratings and Research instrument Private Limited INR 500 cror
Slide 28: Specified terms of the NCD
Specified terms of the NCD Series I II III IV* V VI Frequency of Interest Payment Monthly Cumulative Monthly Cumulative Monthly Cumulative Minimum Application ₹ 10,000 (10 NCDs) across all series In Multiples of thereafter (₹) ₹ 1,000 (1 NCD) Face Value/ Issue Price of NCDs (₹/ NCD) ₹ 1,000 Tenor 24
Slide 29: Thank You
Thank You www.creditaccessgrameen.in 29
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