Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q2 FY22 Earnings Presentation

38 slides from Home First Finance Company India's earnings presentation, October 2021

  1. Slide 1: Tech in Mind Service at Heart

    Tech in Mind Service at Heart Smart Loans for Affordable Homes! Investor Presentation – Q2 FY22

  2. Slide 2: 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

  3. Slide 3: Executive Summary | Q2FY22

    y-o-y q-o-q Executive Summary | Q2FY22 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS ₹46,170 Mn ₹5,152 Mn 1.7% +7.5% +111.9% +69.1% +80 bps -20 bps +23.8% Spread * Cost to Income Opex to Assets 5.6% 35.2% 2.8% +80 bps +10 bps -870 bps +330 bps +30 bps +30 bps PPOP Profit After Tax (

  4. Slide 4: HomeFirst – Who we are

    HomeFirst – Who we are Technology driven affordable housing finance company with pan India presence Home loans to first time home buyers with predominant focus on salaried __individuals having income < ₹50k p.m 92% of book comprise of housing loans with average ticket size of ₹1.0Mn Strong liquidity pi

  5. Slide 5: Our Journey

    Our Journey Scalable operating model CARE Rating CARE / ICRA Rating We got listed BBB- BBB+ A- A+ ₹46,170 Mn Warburg Pincus invested in the company (2) AUM (Sep’21) Series C 60,000+ sanctions True North acquires AuM crosses majority ₹35 bn. stake 30,000+ customers GIC Net worth Co-investment crosses

  6. Slide 6: Share Holding as on Oct’21

    Share Holding as on 15 Oct’21 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 20.2 AETHER (MAURITIUS) LIMITED (GIC)^ 13.4 TRUE NORTH FUND V LLP KEY INVESTORS % Holding 10.3% ORANGE CLOVE INVESTMENTS B.V 28.8 20.2% (WARBURG PINCUS) AETHER (MAURITIUS) LIMITED 7.8 (GIC)^ BESSEMER INDIA CAPITA

  7. Slide 7: Distinguished Board of Directors

    Distinguished Board of Directors Chairman & Deepak Satwalekar Independent Director Ex MD, CEO - HDFC Life Geeta Goel Michael and Anuj Srivastava Independent Directors Country Director - Susan Dell CEO - Livspace Dell Foundation Foundation Divya Sehgal Maninder Singh Juneja Rajagopalan Santhanam Part

  8. Slide 8: Experienced Management Team

    Experienced Management Team Manoj Viswanathan MD & CEO 24+ years in Consumer Lending. 11 years with Citigroup. Ajay Khetan Gaurav Mohta Vilasini Subramaniam Chief Business Officer Chief Marketing Officer Head – Strategic Alliances 19+ years in Consumer Lending & 17+years in Consumer Lending and 16+ year

  9. Slide 9: Meet our customers

    Meet our customers Formal Salaried Informal Salaried Self Employed Customer 1 Customer 2 Customer 3 Age:44 / Location: KR Puram (suburbs of Bangalore) Age: 32 / Location: Sayan (suburbs of Surat) Age: 36 / Location: Avadi (suburbs of Chennai) Who are they? 74% Salaried 26% Self employed Teacher with

  10. Slide 10: 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 Inability to meet NPS individuals primarily in the ₹0.5 -1.5 mn documentation requirements range (1) of traditional lenders 75

  11. Slide 11: Distribution Strategy

    0 -4 4-7 7 - 15 Distribution Strategy Contribution to India's GDP FY’21 ( %) Existing branches - 72 New branch locations - 47 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 42 72 81 13 161 Geographic Expansion Branches Districts States/UT Touchp

  12. Slide 12: Omni channel lead generation driving sourcing

    Omni channel lead generation driving sourcing Diversified lead generation channels |Q2 FY22 70.2% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 11.9% 5.0% 5.6% 100% in-house conversion 0.4% 0.9% 1.8% 2.0% 2.2% by HomeFirst RMs. Construction Digital Digi

  13. Slide 13: Data Science backed centralized underwriting

    Data Science backed centralized underwriting Risk Management Design Tech-Led Centralised Loans approved Salaried customers 100+ data points & digitally Consistency in underwriting within 48 hrs captured data for all customers Build detailed understanding Integrated CRM and Loan of customer via field

  14. Slide 14: Scalable operating model built on holistic technology usage

    Scalable operating model built on holistic technology usage Tech Interventions API Integration with third party Home First App for all stakeholders E-NACH databases 360o view of customer for employees E- Sign Proprietary property price predictor E- Vault Electronic payments E-Stamp paper Machine lea

  15. Slide 15: Digital Adoption

    Digital Adoption Avg time spent by user on the app App logins Unique Users making Payment via App YoY: 76.1% YoY: 99.7% 2m 34 sec 28,251 5,035 For Q2 FY22 24,643 24,818 3,975 3,756 19,064 16,045 2,826 2,521 %of unique user logins of active customers 51.5% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 DIGITAL Q

  16. Slide 16: 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

  17. Slide 17: Progress on ESG Focus Areas

    Progress on ESG Focus Areas Responsibility towards employees Work Sustainably & Ethically Green Operations and community EHomeFirst has a deeply ingrained Ideology of all E Customer focus: Playing a key role in Financial inclusion by E Independent Directors have been part of the Board processes bein

  18. Slide 18: Business Updates

    Business Updates Go

  19. Slide 19: Healthy Growth in Loan Book and Disbursements

    Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 4 Years Last 6 Quarters 5,152 4,518 Disbursement crosses Rs 500crs for 3,488 3,046 the first time! 2,432 15,728 16,183 Q2FY22 surpasses Q4FY21 by 14.0% 10,966 7,455 528 FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY

  20. Slide 20: Consistent Portfolio Metrics | Sep’21

    Consistent Portfolio Metrics | Sep’21 1% 1% 6% 1% AUM by Product AUM by Occupation Housing Loan 25% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharp focus on High ratio of 92% 74% housing loans salaried customers 72% 3% 8% AUM by Credit history AUM by Ticket Size 6% Have Credi

  21. Slide 21: Expansion in Spreads

    Portfolio Yield Expansion in Spreads COB Spread Net Interest Spread Movement Last 4 Years Last 6 Quarters 13.1% 13.1% 13.0% 12.8% 12.8% 12.7% 12.6% 12.9% 13.0% 12.3% Continued Improvement in Cost of Borrowing 8.8% 8.8% 8.5% 8.3% 8.4% 8.0% 8.0% 7.4% 7.2% 7.1% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21

  22. Slide 22: Healthy Leading Indicators: Bounce rate

    Bounce rate Healthy Leading Indicators Bounce rate :On the day of EMI presentation COVID COVID WAVE -1 WAVE -2 36.4% Bounce rates normalising 28.3% 20.1% 17.3% 18.3% 16.5% 15.0% 11.7% 10.8% 10.9% 10.5% 10.2% 9.2% 9.5% 10.0% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21

  23. Slide 23: Healthy Leading Indicators: Collection Efficiency

    Collection Efficiency (1) Healthy Leading Indicators Unique Customers (2) Collection Efficiency Collection efficiency trending back to normal levels 99.8% 98.5% 97.6% 97.2% 98.5% 98.0% 96.3% 96.6% 97.6% 97.8% 96.3% 97.7% 94.7% 96.3% 96.3% 93.8% 95.3% 95.5% 96.1% 96.3% 96.9% 94.3% 94.0% 95.0% 95.5% 93.3% S

  24. Slide 24: Sound Credit Indicators

    Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS No ECGLS 5.8% 5.2% 8.9% 1.9% 7.5% 7.6% 4.1% 4.1% 4.1% 1.7% 6.2% 6.7% 6.2% 1.8% 1.6% 1.8% 4.4% Q2 restructuring at 0.3% 3.1% 3.2% 1.7% 2.0% - 106 borrowers 1.4% 1.3% 3.8% 3.5% 0.8% 1.0% 2.5% 0.6% 2.3% 2.3% (Total Restruc

  25. Slide 25: Diversified Funding Profile at competitive cost of borrowing

    DA Diversified Funding Profile at NCD COB% (Represents quarterly avg.) competitive cost of borrowing NHB Refinance NBFC Public Sector Banks Borrowings Mix and Cost of Borrowing trend Diversified mix of Pvt Sector Banks 19* marquee Lenders 100% 10.00% 17% 19% 22% 19% 90% 21% 21% 20% 22% 23% 9.00% 8.0% 8.

  26. Slide 26: ALM Position as of Sep’21

    ALM Position as of Sep’21 Inflow Outflow Cumulative Surplus 5,880 6,560 7,023 10,889 21,339 12,696 (₹Mn) Robust ALM 71,505 profile ensuring 63,010 sufficient liquidity 58,810 buffers 44,168 41,671 Cumulative 33,278 Positive flows across all the 21,786 time buckets 16,130 14,762 11,765 9,570 5,885 0-3months

  27. Slide 27: Assignment Volume

    Assignment Volume ₹2,756 Mn ₹3,574 Mn ₹3,003 Mn ₹2,456 Mn Consistent demand for assignment of the company’s 2,383 portfolio 1,844 1,491 1,472 1,273 1,159 1,183 611 373 - - - - - Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 27 Investor Presentation

  28. Slide 28: Strong Liquidity Position

    Strong Liquidity Position Liquidity Buffer as on Sep’21 (in ₹Mn) Unencumbered Cash and Cash equivalent 8,079 Un-availed Sanction from NHB - Un-availed Sanction from Banks 5925 Total- 14,004 Particulars (in ₹Mn) Q3 Q4 Q1 Q2 FY22 FY22 FY23 FY23 ₹8,783 million Opening Liquidity 14,004 13,703 13,653 14,1

  29. Slide 29: Financial Updates

    Financial Updates Go

  30. Slide 30: Financial Highlights

    Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) (1) Equity Raised - 1508 3281 3450 - 11 18 ( ₹Mn ) 1001 13805 14173 14627 796 Strong profit growth Robust NW to 9334 9880 # despite maintaining support growth 457 449 351 high liquidity and 5227 160 143 3252 conservative COVID provisionin

  31. Slide 31: ECL Provisions Summary

    ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Sep’21 Loans – Principal Outstanding 34,941.7 1,276.8 640.4 36,858.9 ECL Provision 142.6 154.7 189.6 8.9 495.8 Net Loans – Principal Outstanding 34,799.2 1,122.0 450.8 36,363.1 ECL Provision %

  32. Slide 32: Annexures

    Annexures

  33. Slide 33: Quarterly and Annual Profit & Loss Statement

    Quarterly and Annual Profit & Loss Statement Particulars (in ₹Mn) Q2FY22 Q1FY22 Q2FY21 QoQ YoY FY21 FY20 YoY Interest Income on 1142.5 1081.5 969.4 5.6% 17.9% 4,026.0 3,425.0 17.5% term loans Net gain on DA 170.7 193.7 - 439.4 371.2 Income other than interest 148.2 142.5 118.7 421.2 400.6 income on t

  34. Slide 34: RoE Tree

    RoE Tree Particulars Q2 FY22 Q1 FY22 Q2 FY21 FY21 FY20 Interest Income on term loans / Average total assets 9.9% 9.5% 10.4% 10.1% 11.5% Net Gain on DA / Average total Assets 1.5% 1.7% - 1.1% 1.2% Income other than interest income on term loans/ Average total assets 1.3% 1.3% 1.3% 1.1% 1.4% Total Inc

  35. Slide 35: Key Financial Ratios

    Key Financial Ratios Particulars Q2 FY22 Q1 FY22 Q2 FY21 FY21 FY20 Profit after tax on average total assets (ROA) 3.9% 3.1% 1.5% 2.5% 2.7% Leverage (Average total assets / average Equity or average 3.2 3.2 3.8 3.5 4.1 Net worth) Profit after tax on average equity or average Net worth (ROE) 12.5% 10.

  36. Slide 36: Balance Sheet

    Balance Sheet Particulars (in ₹Mn) Sep’21 FY21 Sep’20 ASSETS Cash & cash equivalents and Other bank 4,895.1 6,798.7 4,208.6 balance Loans 36,371.9 33,265.0 29,721.6 Investments 3,690.8 3,750.2 2,192.1 Other financial assets 1,088.8 1,011.7 850.8 Property, plant and Equipment* 179.4 164.0 169.6 Non-f

  37. Slide 37: Thank You

    Thank You For further information, please contact Company Investor Relations Advisors CIN: L65990MH2010PLC240703 Mr. Manish Kayal, Head - Investor Relations Ms. Neha Shroff:+91 7738073466 manish.kayal@homefirstindia.com neha.shroff@linkintime.co.in Investor Relations - HomeFirst investor.relations@home

  38. Slide 38: Glossary

    Glossary Terms Explanation Loans – Principal outstanding represents gross principal outstanding of loans as of the last day of the POS - Principal Outstanding relevant period or year as per the restated financial statements. Net Interest Income represents interest income on term loans minus Interest

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