Fusion Finance Ltd · NSE:FUSION
Fusion Finance — Fusion Micro Finance — Q1 FY24 Earnings Presentation
81 slides from Fusion Finance's earnings presentation, Aug 2, 2023
Slide 1: Stock exchange submission letter
Letter No. FMFL/SEC/2023-24/SE-61 Date: 02.08.2023 The Manager The Manager Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Bandra Phiroze Jeejeebhoy Towers Kurla Complex, Bandra (E), Mumbai - 400 051 Dalal Street, Mumba
Slide 2: Investor Presentation Q1 FY24
Creating Opportunities… Creating Investor Presentation Opportunities… Q1 FY24 Fusion Micro Finance Limited
Slide 3: Disclaimer
Disclaimer Creating Opportunities… By attending the meeting where this Presentation (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the limitations contained herein and to maintain absolute confidentiality regarding the information disclosed in this Prese
Slide 4: Presentation Path
Presentation Path Creating Opportunities… Vision, Mission Business Executive Summary Overview & Values Our Presence Key Strengths Performance 1 2 33 44 5 6 August 2, 2023 | © Fusion Micro Finance Limited 3
Slide 5: Executive Summary
Creating Opportunities… Executive Summary 1 August 2, 2023 | © Fusion Micro Finance Limited 4
Slide 6: Executive Summary Q1 FY24
Executive Summary Q1 FY24 Creating Opportunities… Consistent quarter with growth across all metrics. AUM grew by ~31% YoY and PAT grew by ~60% YoY…uptick in NIM by 32 bps QoQ. Customer base increased to 36.4 lakh, continue to add new clients AUM NIM PAT ROA ROE ₹ 9,711.75 Cr ₹ 120.46 Cr YoY 31.43% 1
Slide 7: Performance Highlights – Q1 FY24
Performance Highlights – Q1 FY24 Creating Opportunities… Total Income NII PPOP OPEX Cost To Income ₹ 552.78 Cr ₹ 294.07 Cr ₹ 235.39 Cr YoY 53.36% YoY 59.24% YoY 95.85% 5.64% 36.26% QoQ 6.16% QoQ 7.42% QoQ 6.45% Net worth Cost of Borrowing ECL Net NPA CRAR ₹ 328.38 Cr ₹ 2,445.44 Cr 10.57% 0.78% 28.26
Slide 8: Collection Efficiency
Collection Efficiency Creating Opportunities… Total Collection efficiency 111.3% 111.0% 109.5% 107.1% 107.5% 106.5% 96.5% 96.8% 96.9% 97.3% 95.4% 94.1% Q4 FY 22 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY 24 Collection efficiency excluding pre-payment Collection efficiency including pre-payment Pre-Ma
Slide 9: Credit Cost
Credit Cost Creating Opportunities… Understanding the Credit Cost Impact (₹ in Crore) Q1 FY 24 Q1 FY 23 Q4 FY 23 FY 23 Opening ECL [A] 312.66 360.35 289.44 360.35 - Provisions as per ECL [B] 75.08 20.02 69.00 199.51 Reversals (on account of write-off) [C] 59.36 136.10 45.78 247.20 Closing ECL [D = A
Slide 10: Overview
Creating Opportunities… Overview 2 August 2, 2023 | © Fusion Micro Finance Limited 9
Slide 11: 13+ years of proven track record
13+ years of proven track record Creating Opportunities… Diversified Client Growth AUM Growth Organically diversified ~23% over last 5 Years ~37% over last 5 years since inception Technology Robust Liability Marquee Investor On Cloud since 2013 Warburg Pincus - 2018 Management Ratings IPO New Produc
Slide 12: Vision, Mission & Values
Creating Opportunities… Vision, Mission & Values August 2, 2023 | © Fusion Micro Finance Limited 11
Slide 13: Vision, Mission and Values
Vision, Mission and Values Creating Opportunities… Vision: “Fusion Micro Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to transform the quality of Mission: their lives.” “A self-sustainable financial institution which leverage
Slide 14: Our Presence
Creating Opportunities… Our Presence 44 August 2, 2023 | © Fusion Micro Finance Limited 13
Slide 15: Our Presence
Our Presence Creating Opportunities… J & K (2) ~3.64 Active Clients Mn 20States Punjab (48) Haryana (47) Himachal Pradesh (8) Uttarakhand (21) (including 3 UTs) Delhi (9) Uttar Pradesh (221) Assam (20) Rajasthan (97) Bihar(148) 1103 Branches Gujarat (41) Madhya Pradesh (114) Chhattisgarh (33) Jharkh
Slide 16: Key Strengths
Creating Opportunities… Key Strengths 5 August 2, 2023 | © Fusion Micro Finance Limited 15
Slide 17: Key Strengths
Key Strengths Creating Opportunities… Diversification Liability Management Consistency Digital Orientation People Operational Prudence Strong Governance August 2, 2023 | © Fusion Micro Finance Limited 16
Slide 18: Key Strengths: Diversification
Key Strengths : Diversification Creating Opportunities… QoQ Network Distribution Top 5 states concentration Rural vs Urban Presence 19 19 20 20 20 69.0% 69.8% 93% 93% 93% 93% 94% 115 0 1103 66.8% 67.7% 66.1% 18 1086 110 0 1057 15 105 0 1031 12 100 0 966 9 950 6 900 3 850 0 7% 7% 7% 7% 6% Q1'23 Q2'23
Slide 19: Key Strengths: Consistency
Key Strengths : Consistency Creating Opportunities… QoQ ₹ in Crore AUM Disbursement Growth 31.43% Growth 15.21% 9,712 2,373 9,296 2,285 8,654 8,047 7,389 2,188 2,052 1,983 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 YoY AUM Disbursement CAGR 36.97% CAGR 32.13% 9,296 8,596 6,786 6,180
Slide 20: Key Strengths: Consistency (Contd…)
Key Strengths : Consistency (Contd…) Creating Opportunities… QoQ AUM/ RO (₹ in Crore) AUM/Branch (₹ in Crore) Borrower/ Branch 1.4 1.4 3,513 9.1 3,452 8.8 3,381 1.3 8.4 1.2 3,223 1.2 7.9 7.8 3,116 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 YoY AUM/ RO (
Slide 21: Key Strengths: Operational Prudence
Key Strengths : Operational Prudence Creating Opportunities… QoQ Avg. Ticket Size (₹ in K) Borrowers (in Lakh) Avg. OS / Borrower (₹ in K) 42.4 25.8 35.3 36.4 41.2 31.9 34.0 25.6 29.0 37.9 25.0 24.8 36.4 36.2 24.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'22 Q4'23 Q1
Slide 22: Key Strengths: People
Key Strengths : People Creating Opportunities… Stable and Experienced core management team and a strong second line with diversified experience Balanced infusion of strong talent for key leadership positions with progressing home-grown talent Team Size Building a performance driven culture which rew
Slide 23: Key Strengths: Liability Management
Key Strengths : Liability Management Creating Opportunities… Average Cost of Borrowing Marginal & Average Cost of Borrowing 12.7% 12.3% 11.2% 11.2% 10.4% 10.3% 10.7% 10.7% 10.7% 10.4% 10.6% 10.3% 10.2% 10.4% 10.1% 10.1% 9.9% YoY QoQ '19 '20 '21 '22 '23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Marginal Co
Slide 24: Key Strengths: Liability Management (Contd…)
Key Strengths : Liability Management (Contd…) Creating Opportunities… Positive ALM (in Months) 25.8 24.2 Period Rating 23.0 23.7 23.1 22.2 20.4 18.8 16.5 17.5 17.6 17.4 FY 2024 A FY 2022 A- FY 2018 BBB+ '19 '20 '21 '22 '23 Q1'24 Avg Maturity of Assets Avg Maturity of Liabilties Loan Maturity Rating
Slide 25: Key Strengths: Digital Orientation “Touch & Tech” Strategy
Key Strengths : Digital Orientation Creating Opportunities… Technology – Infrastructure Customer Experience Early Cloud adoption Digital onboarding improved from Scalable 30% in 2018 to 100% in Q1 FY24 Open API Cashless disbursement improved from Architecture 20% in 2018 to 99.23% in Q1 FY24 Operati
Slide 26: Key Strengths: Digital Orientation (Building for future)
Key Strengths : Digital Orientation (Building for future) Creating Opportunities… Robotic Process Automation facilitating ▪ Automated credit decisioning Develop Technology Solutions Leverage Robotics ▪ Driving operational efficiency To proactively access opportunities To automate manual & repetitive
Slide 27: Key Strengths: Strong Governance
Key Strengths : Strong Governance Creating Opportunities… Independent Risk Independent Audit Function reporting Management Function to Board Audit Committee Extensive use of Au Strong reporting mechanism & Data Analytics nt d Comprehensive risk-based audits e it M nagem anage Automation driving opti
Slide 28: ESG - seeking to be a responsible Financial Institution
ESG - seeking to be a responsible Financial Institution Creating Opportunities… Responsible approach towards environment , community and employees as well as towards internal governance standards Continuous Engagement with Community and Employees Governance Standards 55 initiatives covering 40 distr
Slide 29: Corporate Social Responsibility
Corporate Social Responsibility Creating Opportunities… Fusion creates a positive impact on economic, social and environmental growth of disadvantaged communities through integrated and sustainable development initiatives 13,657 55 Financial & Digital Literacy Relief Work Beneficiaries: 2422 Benefic
Slide 30: Business Performance
Creating Opportunities… Business Performance 6 August 2, 2023 | © Fusion Micro Finance Limited 29
Slide 31: Profit and Loss Statement
Profit and Loss Statement Creating Opportunities… Profit & Loss Statement (₹ Crore) Q1 FY 24 Q1 FY 23 YoY % Q4 FY 23 QoQ % FY 23 Revenue from operations - Interest income 479.00 329.36 45.43% 450.74 6.27% 1,600.10 - Other revenue from operations 52.07 13.36 289.75% 50.15 3.83% 141.82 Total revenue f
Slide 32: Balance Sheet
Balance Sheet Creating Opportunities… Financial Position (₹ Crore) Q1 FY 24 Q1 FY 23 YoY % Q4 FY 23 QoQ % Financial and Non-financial assets - Cash & Other Bank Balances 1,177.08 673.81 74.69% 950.36 23.86% - Bank balances other than cash and cash equivalents 70.04 95.84 (26.92)% 114.67 (38.92)% - L
Slide 33: Key Ratios
Key Ratios Creating Opportunities… QoQ Margin Analysis Cost to Income Opex 44.7% 20.3% 20.7% 21.0% 21.5% 5.6% 5.6% 5.6% 17.7% 19.5% 36.6% 36.5% 38.4% 36.2% 36.3% 5.5% 5.5% 5.4% 9.9% 10.1% 10.1% 10.4% 10.4% 10.6% 10.2% 10.3% 10.6% 10.9% 9.4% 7.8% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23
Slide 34: Key Ratios
Key Ratios Creating Opportunities… ROA (On Avg. AUM) ROA (On Avg. Assets) ROE 4.93% 5.10% 5.07% 4.99% 4.99% 25.95% 4.91% 4.78% 4.74% 4.24% 21.81% 22.04% 4.03% 20.24% 20.21% 0.83% 0.75% 3.97% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 G
Slide 35: MSME Business
MSME Business Creating Opportunities… MSME vertical launched in Dec 2019 to tap the potential of the ‘missing middle’ Building credit assessment capability …nucleus of our MSME strategy Clear focus on mapping adjacencies and potential thereof Business Update (As of Q1 FY24) Total Clients : 12,397 AU
Slide 36: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Creating Opportunities… ◼ Chairperson of the governing board of ◼ Managing Director at Warburg Pincus India Microfinance Institutions Network Limited ◼ Served on the board of Creditaccess Grameen and Muthoot Microfinance, among ◼ Over 26 years of exper
Slide 37: Stable & Experienced Management Team
Stable & Experienced Management Team Creating Opportunities… August 2, 2023 | © Fusion Micro Finance Limited 36
Slide 38: Shareholder Profile
Shareholder Profile Creating Opportunities… Category Top 10 Institutional Investors FPI Massachusetts Institute of Technology Public & Others, 14.33% FPI The Nomura Trust and Banking Co. Ltd. Top 10 Shareholders, FPI BNP Paribas Arbitrage 17.47% Mutual Fund SBI Banking Financial Services Fund Mutual
Slide 39: Abbreviations
Abbreviations Creating Opportunities… AUM Asset Under Management PAT Profit After Tax NIM Net Interest Margin ROE Return on Equity ROA Return on Assets ECL Expected Credit Loss CRAR Capital Risk Adequacy Ratio GNPA Gross Non-Performing Assets NNPA Net Non-Performing Assets NII Net Interest Income PP
Slide 40: Definitions
Definitions Creating Opportunities… • AUM represents the aggregate of principal outstanding for all loans including the assigned portfolio as of the last day of the relevant period/year • Net Interest Income represents interest income on loan portfolio for the relevant period/year reduced by finance
Slide 41: Thank You
Creating Opportunities… Creating Thank You Opportunities… For Investor queries contact: Mr. Deepak Madaan| Email: investor.relations@fusionmicrofinance.com | +91-9289224563 August 2, 2023 | © Fusion Micro Finance Limited 40
Slide 42: Investor Presentation Q1 FY24
Creating Opportunities… Creating Investor Presentation Opportunities… Q1 FY24 Fusion Micro Finance Limited
Slide 43: Disclaimer
Disclaimer Creating Opportunities… By attending the meeting where this Presentation (“Presentation”) is made, or by reading the Presentation materials, you agree to be bound by the limitations contained herein and to maintain absolute confidentiality regarding the information disclosed in this Prese
Slide 44: Presentation Path
Presentation Path Creating Opportunities… Vision, Mission Business Executive Summary Overview & Values Our Presence Key Strengths Performance 1 2 33 44 5 6 August 2, 2023 | © Fusion Micro Finance Limited 3
Slide 45: Executive Summary
Creating Opportunities… Executive Summary 1 August 2, 2023 | © Fusion Micro Finance Limited 4
Slide 46: Executive Summary Q1 FY24
Executive Summary Q1 FY24 Creating Opportunities… Consistent quarter with growth across all metrics. AUM grew by ~31% YoY and PAT grew by ~60% YoY…uptick in NIM by 32 bps QoQ. Customer base increased to 36.4 lakh, continue to add new clients AUM NIM PAT ROA ROE ₹ 9,711.75 Cr ₹ 120.46 Cr YoY 31.43% 1
Slide 47: Performance Highlights – Q1 FY24
Performance Highlights – Q1 FY24 Creating Opportunities… Total Income NII PPOP OPEX Cost To Income ₹ 552.78 Cr ₹ 294.07 Cr ₹ 235.39 Cr YoY 53.36% YoY 59.24% YoY 95.85% 5.64% 36.26% QoQ 6.16% QoQ 7.42% QoQ 6.45% Net worth Cost of Borrowing ECL Net NPA CRAR ₹ 328.38 Cr ₹ 2,445.44 Cr 10.57% 0.78% 28.26
Slide 48: Collection Efficiency
Collection Efficiency Creating Opportunities… Total Collection efficiency 111.3% 111.0% 109.5% 107.1% 107.5% 106.5% 96.5% 96.8% 96.9% 97.3% 95.4% 94.1% Q4 FY 22 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY 24 Collection efficiency excluding pre-payment Collection efficiency including pre-payment Pre-Ma
Slide 49: Credit Cost
Credit Cost Creating Opportunities… Understanding the Credit Cost Impact (₹ in Crore) Q1 FY 24 Q1 FY 23 Q4 FY 23 FY 23 Opening ECL [A] 312.66 360.35 289.44 360.35 - Provisions as per ECL [B] 75.08 20.02 69.00 199.51 Reversals (on account of write-off) [C] 59.36 136.10 45.78 247.20 Closing ECL [D = A
Slide 50: Overview
Creating Opportunities… Overview 2 August 2, 2023 | © Fusion Micro Finance Limited 9
Slide 51: 13+ years of proven track record
13+ years of proven track record Creating Opportunities… Diversified Client Growth AUM Growth Organically diversified ~23% over last 5 Years ~37% over last 5 years since inception Technology Robust Liability Marquee Investor On Cloud since 2013 Warburg Pincus - 2018 Management Ratings IPO New Produc
Slide 52: Vision, Mission & Values
Creating Opportunities… Vision, Mission & Values August 2, 2023 | © Fusion Micro Finance Limited 11
Slide 53: Vision, Mission and Values
Vision, Mission and Values Creating Opportunities… Vision: “Fusion Micro Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to transform the quality of Mission: their lives.” “A self-sustainable financial institution which leverage
Slide 54: Our Presence
Creating Opportunities… Our Presence 44 August 2, 2023 | © Fusion Micro Finance Limited 13
Slide 55: Our Presence
Our Presence Creating Opportunities… J & K (2) ~3.64 Active Clients Mn 20States Punjab (48) Haryana (47) Himachal Pradesh (8) Uttarakhand (21) (including 3 UTs) Delhi (9) Uttar Pradesh (221) Assam (20) Rajasthan (97) Bihar(148) 1103 Branches Gujarat (41) Madhya Pradesh (114) Chhattisgarh (33) Jharkh
Slide 56: Key Strengths
Creating Opportunities… Key Strengths 5 August 2, 2023 | © Fusion Micro Finance Limited 15
Slide 57: Key Strengths
Key Strengths Creating Opportunities… Diversification Liability Management Consistency Digital Orientation People Operational Prudence Strong Governance August 2, 2023 | © Fusion Micro Finance Limited 16
Slide 58: Key Strengths: Diversification
Key Strengths : Diversification Creating Opportunities… QoQ Network Distribution Top 5 states concentration Rural vs Urban Presence 19 19 20 20 20 69.0% 69.8% 93% 93% 93% 93% 94% 115 0 1103 66.8% 67.7% 66.1% 18 1086 110 0 1057 15 105 0 1031 12 100 0 966 9 950 6 900 3 850 0 7% 7% 7% 7% 6% Q1'23 Q2'23
Slide 59: Key Strengths: Consistency
Key Strengths : Consistency Creating Opportunities… QoQ ₹ in Crore AUM Disbursement Growth 31.43% Growth 15.21% 9,712 2,373 9,296 2,285 8,654 8,047 7,389 2,188 2,052 1,983 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 YoY AUM Disbursement CAGR 36.97% CAGR 32.13% 9,296 8,596 6,786 6,180
Slide 60: Key Strengths: Consistency (Contd…)
Key Strengths : Consistency (Contd…) Creating Opportunities… QoQ AUM/ RO (₹ in Crore) AUM/Branch (₹ in Crore) Borrower/ Branch 1.4 1.4 3,513 9.1 3,452 8.8 3,381 1.3 8.4 1.2 3,223 1.2 7.9 7.8 3,116 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 YoY AUM/ RO (
Slide 61: Key Strengths: Operational Prudence
Key Strengths : Operational Prudence Creating Opportunities… QoQ Avg. Ticket Size (₹ in K) Borrowers (in Lakh) Avg. OS / Borrower (₹ in K) 42.4 25.8 35.3 36.4 41.2 31.9 34.0 25.6 29.0 37.9 25.0 24.8 36.4 36.2 24.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'22 Q4'23 Q1
Slide 62: Key Strengths: People
Key Strengths : People Creating Opportunities… Stable and Experienced core management team and a strong second line with diversified experience Balanced infusion of strong talent for key leadership positions with progressing home-grown talent Team Size Building a performance driven culture which rew
Slide 63: Key Strengths: Liability Management
Key Strengths : Liability Management Creating Opportunities… Average Cost of Borrowing Marginal & Average Cost of Borrowing 12.7% 12.3% 11.2% 11.2% 10.4% 10.3% 10.7% 10.7% 10.7% 10.4% 10.6% 10.3% 10.2% 10.4% 10.1% 10.1% 9.9% YoY QoQ '19 '20 '21 '22 '23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Marginal Co
Slide 64: Key Strengths: Liability Management (Contd…)
Key Strengths : Liability Management (Contd…) Creating Opportunities… Positive ALM (in Months) 25.8 24.2 Period Rating 23.0 23.7 23.1 22.2 20.4 18.8 16.5 17.5 17.6 17.4 FY 2024 A FY 2022 A- FY 2018 BBB+ '19 '20 '21 '22 '23 Q1'24 Avg Maturity of Assets Avg Maturity of Liabilties Loan Maturity Rating
Slide 65: Key Strengths: Digital Orientation “Touch & Tech” Strategy
Key Strengths : Digital Orientation Creating Opportunities… Technology – Infrastructure Customer Experience Early Cloud adoption Digital onboarding improved from Scalable 30% in 2018 to 100% in Q1 FY24 Open API Cashless disbursement improved from Architecture 20% in 2018 to 99.23% in Q1 FY24 Operati
Slide 66: Key Strengths: Digital Orientation (Building for future)
Key Strengths : Digital Orientation (Building for future) Creating Opportunities… Robotic Process Automation facilitating ▪ Automated credit decisioning Develop Technology Solutions Leverage Robotics ▪ Driving operational efficiency To proactively access opportunities To automate manual & repetitive
Slide 67: Key Strengths: Strong Governance
Key Strengths : Strong Governance Creating Opportunities… Independent Risk Independent Audit Function reporting Management Function to Board Audit Committee Extensive use of Au Strong reporting mechanism & Data Analytics nt d Comprehensive risk-based audits e it M nagem anage Automation driving opti
Slide 68: ESG - seeking to be a responsible Financial Institution
ESG - seeking to be a responsible Financial Institution Creating Opportunities… Responsible approach towards environment , community and employees as well as towards internal governance standards Continuous Engagement with Community and Employees Governance Standards 55 initiatives covering 40 distr
Slide 69: Corporate Social Responsibility
Corporate Social Responsibility Creating Opportunities… Fusion creates a positive impact on economic, social and environmental growth of disadvantaged communities through integrated and sustainable development initiatives 13,657 55 Financial & Digital Literacy Relief Work Beneficiaries: 2422 Benefic
Slide 70: Business Performance
Creating Opportunities… Business Performance 6 August 2, 2023 | © Fusion Micro Finance Limited 29
Slide 71: Profit and Loss Statement
Profit and Loss Statement Creating Opportunities… Profit & Loss Statement (₹ Crore) Q1 FY 24 Q1 FY 23 YoY % Q4 FY 23 QoQ % FY 23 Revenue from operations - Interest income 479.00 329.36 45.43% 450.74 6.27% 1,600.10 - Other revenue from operations 52.07 13.36 289.75% 50.15 3.83% 141.82 Total revenue f
Slide 72: Balance Sheet
Balance Sheet Creating Opportunities… Financial Position (₹ Crore) Q1 FY 24 Q1 FY 23 YoY % Q4 FY 23 QoQ % Financial and Non-financial assets - Cash & Other Bank Balances 1,177.08 673.81 74.69% 950.36 23.86% - Bank balances other than cash and cash equivalents 70.04 95.84 (26.92)% 114.67 (38.92)% - L
Slide 73: Key Ratios
Key Ratios Creating Opportunities… QoQ Margin Analysis Cost to Income Opex 44.7% 20.3% 20.7% 21.0% 21.5% 5.6% 5.6% 5.6% 17.7% 19.5% 36.6% 36.5% 38.4% 36.2% 36.3% 5.5% 5.5% 5.4% 9.9% 10.1% 10.1% 10.4% 10.4% 10.6% 10.2% 10.3% 10.6% 10.9% 9.4% 7.8% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23
Slide 74: Key Ratios
Key Ratios Creating Opportunities… ROA (On Avg. AUM) ROA (On Avg. Assets) ROE 4.93% 5.10% 5.07% 4.99% 4.99% 25.95% 4.91% 4.78% 4.74% 4.24% 21.81% 22.04% 4.03% 20.24% 20.21% 0.83% 0.75% 3.97% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 G
Slide 75: MSME Business
MSME Business Creating Opportunities… MSME vertical launched in Dec 2019 to tap the potential of the ‘missing middle’ Building credit assessment capability …nucleus of our MSME strategy Clear focus on mapping adjacencies and potential thereof Business Update (As of Q1 FY24) Total Clients : 12,397 AU
Slide 76: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Creating Opportunities… ◼ Chairperson of the governing board of ◼ Managing Director at Warburg Pincus India Microfinance Institutions Network Limited ◼ Served on the board of Creditaccess Grameen and Muthoot Microfinance, among ◼ Over 26 years of exper
Slide 77: Stable & Experienced Management Team
Stable & Experienced Management Team Creating Opportunities… August 2, 2023 | © Fusion Micro Finance Limited 36
Slide 78: Shareholder Profile
Shareholder Profile Creating Opportunities… Category Top 10 Institutional Investors FPI Massachusetts Institute of Technology Public & Others, 14.33% FPI The Nomura Trust and Banking Co. Ltd. Top 10 Shareholders, FPI BNP Paribas Arbitrage 17.47% Mutual Fund SBI Banking Financial Services Fund Mutual
Slide 79: Abbreviations
Abbreviations Creating Opportunities… AUM Asset Under Management PAT Profit After Tax NIM Net Interest Margin ROE Return on Equity ROA Return on Assets ECL Expected Credit Loss CRAR Capital Risk Adequacy Ratio GNPA Gross Non-Performing Assets NNPA Net Non-Performing Assets NII Net Interest Income PP
Slide 80: Definitions
Definitions Creating Opportunities… • AUM represents the aggregate of principal outstanding for all loans including the assigned portfolio as of the last day of the relevant period/year • Net Interest Income represents interest income on loan portfolio for the relevant period/year reduced by finance
Slide 81: Thank You
Creating Opportunities… Creating Thank You Opportunities… For Investor queries contact: Mr. Deepak Madaan| Email: investor.relations@fusionmicrofinance.com | +91-9289224563 August 2, 2023 | © Fusion Micro Finance Limited 40