Choice International Limited · NSE:CHOICEIN
Choice International — Q1 FY25 Earnings Presentation
41 slides from Choice International's earnings presentation, Jul 18, 2024
Slide 1: Choice International Investor Presentation Cover Letter
Choice The Joy of Earning REF: CIL/CC/29/2024-25 July 18, 2024 To, To, The Department of Corporate Services, The Department of Corporate Services, The NSE Limited The BSE Limited, P.J. Towers, 5% Floor, Exchange Plaza Plot No. C/ 1, G Block, Dalal Street, Bandra — Kurla Complex, Mumbai- 400 001 Band
Slide 2: Enabling India's Aspirations
Slide 3: Company Overview
Company Overview Choice The Joy of Eaming One of the leading financial conglomerates with over a decade's expertise providing tech-led services H Branch Offices H Project Offices % Clientele # Inhouse Tech Experts @ Choice Business Associates « Team Strength 149 52 1Mn+ 200+ 41K+ 5.2K+ Strong Resear
Slide 4: Key Highlights
Key Highlights Choice The Joy of Eaming A diversified mix for sustainable business Broking & Distribution @ - - --- - ------------ ® NBFC Stock Broking, Wealth, Insurance 423% vi% Revenue Split A% A93% 890K 205K+ ¥4.53Bn 2.86Bn Demat Accounts Active Accounts Total Loan Book Retail Loan Book A28% Am%
Slide 5: Q1FY25 Highlights
Q1FY25 Highlights Choice The Joy of Eaming Revenue (Z Mn) EBITDA (Z Mn) A 55% A 48% 694 —————————————————————————————————————————————— 692 582 516 2164 : ; 2,008 2,059 376 1939 QIFY24 Q2FY24 Q3FY24 Q4FY24 QIFV2S 193 PAT (R Mn) 203 QiFY2a QzFY24 Q3FY24 Q4FY24 Q1FY25 QIFY24 Q2FY24 Q3FY24 Q4FY24 QIFY2S
Slide 6: Stock Broking - Industry Overview
Stock Broking - Industry Overview Choice The Joy of Eaming Tightened Regulations ADTO (% Lacs Crores) Gradual ] E Industry Higher Compliance Costs Consolidation = Moderation in Client Accretion Fy23 - FY22 s [ Beneficial for Choice, being industry leader with: « Enhanced Revenue Streams through dive
Slide 7: Stock Broking
Stock Broking Choice The Joy of Eaming Expanding our PAN India reach and client demographic 7% Steadily Increasing Client Base [/ Increased Penetration In Unserved 25% A 23% & Underserved Locations Geographical Distribution of Clients g O ees @ Tierl @ Tierll @ Tier Il & Below 807 : 768 721 14% Majo
Slide 8: Stock Broking
Stock Broking Choice The Joy of Eaming Expanding our PAN India reach and client demographic Consistently Growing Broking & Distribution Segment Market Share & ADTO (Z Mn) Revenue (¥ Mn) Has Peaked Rising Adoption Of A 57% 130% Digital Platforms 119% 122% 1230 1268 1,296 @ onine 1.09% e% 1216 @ offii
Slide 9: Stock Broking
Stock Broking Choice 2358670 095%) 52455900041 2369105 (0or) 3 1.49 Mn+ Hey Ashish e 4 Q App Downloads 219,16,908 p " Simple User Interface Stocks Mutud Funcs Funds Avaiable 8151 noz2L 100000 +~ Recommendation Equity Mutual Fund ' - gue— " In-app Curated Baskets ® = Secured Equity Basket " Diverse I
Slide 10: Stock Broking
Stock Broking Choice The Joy of Eaming Simple User Interface, In-app Curated Baskets, Diverse Investment Products Advance Order - Advance Order - Margin Trading Funding Auto Scalable Bracket Order GTT (MTF) Order Type Architecture We are pleased to introduce the Bracket We are pleased to introduce G
Slide 11: Tech Insights
Tech Insights Choice The Joy of Eaming Seamless collaboration, cutting - edge features Front End Middle Layer Back End Systems (Custom Interface Layer) @ Exe Based Trading Platforms Usage Of Middle Layer @ Back - Office « GTT » Charts D Mobile App o OMS & RMS « Reports Mis @ Web Trading Platform ‘ f
Slide 12: Stock Broking
Stock Broking Choice The Joy of Eaming Simple User Interface, Recommendation, In-app Curated Baskets, Diverse Investment Products a= < puskets v oa () smensomsasir i Mise et \fT Introduction of Advance Introduction of Advance Introduction of MTF Customise your diversified Order - Bracket Order Order
Slide 13: Stock Broking - Allied Products
Stock Broking - Allied Products Choice The Joy of Eaming Maximising growth of portfolio with a mix products Fleet of Products Sustained Growth in AUM Progressive increase in SIP Book = A% A 48% - Treasury Government ''''''''''''''''''''''''''''''''''''''''''''''''''''''' Bills Securities ! 77 : 906
Slide 14: Insurance - Industry Overview
Insurance - Industry Overview Choice The Joy of Eaming Insurance Density (US$) Total APE - 1.4% GDPI Growth - Life Insurers Industry cAGR Indian Gl Industry (in ¥ Tn) 32% Long Term Goal Growth (% Bn) 2,694 Growth (-> 32 37 8885 630 736 80 o 892 921 1065 1260 Medium Term Goal gs3 Mssilllllll [ i I I
Slide 15: Insurance - Key Growth Factors in the sector
Insurance - Industry Overview Choice The Joy of Eaming Key Growth Factors in the sector L4 1 Myriad Of Initiatives IRDAI has also undertaken various initiatives towards boosting the insurance penetration, such as permitting insurers to conduct video-based KYC. launching standardized insurance produc
Slide 16: Insurance Distribution
Insurance Distribution Choice The Joy of Eaming Our Catering to SMEs and retail customers Corporate Insurance Retail Insurance [@ Corporate Direct Team Choice D@ In-House (Cross Sales) u@ POSP Channel The Joy of Earning Premium 22% Premium 78% remium 100% OUR OFFERINGS &® Engineering Projects Proper
Slide 17: Insurance Distribution
Insurance Distribution Choice The Joy of Eaming Tapping into new territories, Propelled by surge of marquee clients Premium from Exponential Growth in Insurance Premium Enroute Mass Coverage 90% New Business A 39% A 236% 26916 Fresh Lead 625 10378 14,567 80% Conversion Rate 492 512 470 8008 I 8755 I
Slide 18: Insurance Distribution
Insurance Distribution Choice The Joy of Eaming Tapping into new territories, Propelled by surge of marquee clients By A . Project Value Total Cattle Significant boost in employee ¥100Bn assured under 15K+ oeleae productivity Project Insurance IeEEN 135 3.48 S Key Highlights Q4FY24 573 £ e I 832 We
Slide 19: NBFC - Industry Overview
NBFC - Industry Overview Choice The Joy of Eaming Expanding our PAN India reach and client demographic Banks Vs NBFCs - YoY growth NBFCs showing strong out-performance Banks Rise in Funding Avenues for green in Advances despite multiple regulatory and economic changes Financing (Z Lakh Cr) i i : ran
Slide 20: NBFC
NBFC Choice The Joy of Eaming Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes VAR scctorLening (¢ ? 4.53 Bn ? 2,86 Bn Key Competencies First preference for Our Offerings MSME Lending e y Solar @ MSME Business { Finance | | Loan T
Slide 21: NBFC
NBFC Choice The Joy of Eaming Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes Growing Net Interest Margin Focused Retail Portfolio Mix 2.74% 387% 8.00% A Expandedby 53bps % 2.86 Bn 367% as of Q1 FY25 26.47% 1057% . 1039% 1040% 1001% 0.92%
Slide 22: NBFC - Robust Underwriting Processes
NBFC Choice The Joy of Eaming Robust Underwriting Processes = & A Q =) 1. Real-time Credit 2. Multiple Database 3. Centralized 4. Geo-tagging 5. Cashless Bureau checks Checks Credit Team Operations In addition to own Dedupe Check on more KYC verification, of 100% branches via penny drop scorecard fo
Slide 23: NBFC
NBFC Choice The Joy of Eaming Wide range of product offering to cater multiple customer segments in priority sector Products Name MSME Business Solar Loan Loans (Secured) Ticket Size Upto ¥ 5 Mn Upto ¥ 5 Mn Tenor (in Months) Upto 120 Upto 60 ROI Range 16-22% 18-24% Security Coverage (%) 40-80 100 Pr
Slide 24: Choice Matters: Impacting Tomorrow
Choice Matters: Impacting Tomorrow Choice The Joy of Eaming 7% 5% @ High School (Upto 12th) © MSME Credit Gap: ‘ @ Groduate Out of over 640 lakh MSMEs in India, only 14% have access to credit & the overall credit @ Post Graduate gap in the MSME Sector is ¥ 25 lakh crores in India. Y ;’;ESS:"";‘L[JCA
Slide 25: Advisory Services - Industry Overview
Advisory Services - Industry Overview Choice The Joy of Eaming Investments in Core Infra (% Lakh Cr) 9,084 ruojects US$1,806.70Bn Total Project Cost 373 1'997 Projects Under Development 57 Sub-sectors 256 189 15 183 124 86 n ‘l Infrastructure is much more than cement and l concrete. Infrastructure g
Slide 26: Advisory Services - Statewise Order Book
Advisory Services Choice The Joy of Eaming Statewise - Order Book Order Book (% Bn) . Maharashtra 19% @ Rajasthan 620 580 3% . ‘West Bengal 545 545 @ others* Chhattisgarh Goa 50% Jharkhand Madhya Pradesh Odissa Bihar &27 I I 28% Delhi aiFvze QzFv2a. 03FY24 QsFv2n otFv2s Tamil Nadu Road Design & PMAY
Slide 27: Advisory Services - Key Projects
Advisory Services Choice The Joy of Eaming Association with over 500 Urban Local Bodies, 25 State Departments and 10,000+ Panchayati Raj institutions. National Family Health Survey VI: In-depth Public Health Survey- 26K+ housenolds, across 1.3K villages in the Chattisgarh, crucial to decide health p
Slide 28: Choice Matters: Impacting Tomorrow
Choice Matters: Impacting Tomorrow Choice The Joy of Eaming = / \ 0 = D ) oo 3 States oren e R TR 1 s S PR 8 100+ Districts 350+ Talukas 20,000+ Schemes 10 Mn+ Households 55 Mn+ Beneficiaries % 430 Bn+ Project Cost Impact Of Flagship Projects
Slide 29: Choice Matters: Impacting Tomorrow
Choice The Joy of Eaming Choice is committed to actively participate in India's remarkable growth story and leveraging Choice our resources, expertise, and innovative solutions to make a meaningful impact on various aspects of Indian life, from economic development and employment opportunities to so
Slide 30: Choice Connect
Choice Connect Choice To enable individual agents to become financial advisers with the help of proprietary engine, engaging trainings and digital execution of services No. of Choice Business Associates (CBAs) o 110+ 6.6K+ 41357 CBA Trainings Conducted CBAs received Payouts 38,884 during the Quarter
Slide 31: Choice Connect
Choice Connect Choice The Joy of Earning To enable individual agents to become financial advisers with the help of proprietary engine, engaging trainings and digital execution of services Helping Agents Focus On CBA Experience ‘Web, Android and iOS platform Business Support CBA Onboarding to work fr
Slide 32: Consolidated Financial Performance - Quarterly
Consolidated Financial Performance - Quarterly Choice The Joy of Eaming Particulars (¥ Lakhs) Q1FY25 Q1FY24 Y-o0-Y Q4FY24 Q-0-Q Growth (%) Growth (%) Revenue from Operations 20,064 13,791 45.49% 21,455 (6.48)% Other Income 529 135 292.28% 187 183.00% Total Income 20,594 13,926 47.88% 21,642 (4.84)%
Slide 33: Consolidated Financial Performance - Quarterly
Consolidated Financial Performance - Quarterly Choice The Joy of Eaming Particulars ( ¥ Lakhs) Q1FY25 Q1FY24 Y-0-¥ Q4FY24 Q-0-Q Growth (%) Growth (%) Revenue from Operations 20,064 13,791 21,455 Otfer ncare 529 135 187 Total Income 20,594 13,926 47.88% 21,642 (5.09%) Employee Benefit Expenses 6,795
Slide 34: Board Members
Board Members Choice The Joy of Earning Board with extensive experience across businesses Y 4 A Mrs. Vinita Patodia Mr. Kamal Poddar Mr. Suyash Patodia Mr. Arun Poddar Mr. Ajay Kejriwal Non- Executive Chairperson Managing Director Joint Managing Director Executive Director & CEO Execurive Director e
Slide 35: Current Entity Structure
Current Entity Structure Choice The Joy of Earning CHOICEIN \ Choice Equity Choice Insurance Choice Choice Capital Choice Consultancy Broking Broking Finserv Advisors Services 100% 50% 97.34% 100% 100% Choice Corporate Services x \ \ 75% Choice Choice Choice Choice Tech L p. Wealth Portfolio Connect
Slide 36: Environmental, Social and Governance
Environmental, Social and Governance Choice The Joy of Eaming Governance Social Environment *» Well-established Financial services » Providing and facilitating access to « Conducting operations in energy efficient business. Implementing anti-bribery products and services for the visually manner by o
Slide 37: Geographical Presence
Choice The Joy of Eaming Agra Ahmedabad-1 Chittorgarh Cochin Jaipur-6 Jaipur-7 Mandalgarh Mandsaur Ranchi-1 Ranchi-2 Ahmedabad-2 Coimbatore Jalandhar Mangalore Ratlam Jalgaon Reengus Geographical Ahmedabad-3 Dehradun Mathura Ahmednagar Delhi Jammu Mehsana Salem Ajmer Deogarh Jamshedpur Modasa Salumb
Slide 38: Media Presence
Media Presence Choice The Joy of Eaming Extensive coverage by Television, Digital, Print and Social Media News and Print Media Q1FY25 £ cnee NES ENEW, & bwiesiie 2 =] 3% aws Bloomberg Hiint PRBHT N ThePrint 13504 Hours on various TV froneyconrol I CEN N channels covering Choice & our Analyst Follow
Slide 39: Membership and Certifications
Membership and Certifications Choice The Joy of Eaming Registered across exchanges in India Memberships and Registrations Certifications Auditors a R MSKA & Associates < NCDEX A\ Chartered Accountants 5} cDsL “fi;fi" « A Member firm of BDO 3 NSDL & Tocnology, Tt Resch
Slide 40: Disclaimer
Choice The Joy of Eaming Disclaimer Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Th
Slide 41: Thank You