Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN

Cholamandalam Investment And Finance — Investor Presentation (June 2023)

83 slides from Cholamandalam Investment And Finance's investor presentation, June 2023

1. Slide 1: Corporate Presentation - June 2023

   CORPORATE PRESENTATION - June 2023

2. Slide 2: Table of Contents

   Table of Contents 1. Group overview 2. Corporate 3. Financial 4. Business overview performance segments' overview 5. Funding profile 6. Subsidiaries 7. Environmental 8. Risk performance Social Governance management 2

3. Slide 3: Murugappa Group Overview

   Murugappa Group Overview 3

4. Slide 4: Murugappa Group in a Nutshell

   Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $35.9 Turnover cap (as on 30th Years Existence B B (FY23) Jun 2023) Listed 3 Sectors 29 Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 4

5. Slide 5: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 36,090 84,048 1,10,827 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 27,877 8,213 22,749 61,299 93,877 NA 16,950 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,156

6. Slide 6: Corporate Overview

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7. Slide 7: Spirit of Murugappa

   SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7

8. Slide 8: Cholamandalam Investment & Finance Company Limited

   Cholamandalam Investment & Finance Company Limited 27.4 lakh + customers 48,127 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 27.4 lakh plus customers till date 200 plus employees in year 2000 to 48,000+ employees today Rs. 1.

9. Slide 9: Our journey so far

   Our journey so far FY 2024 FY 2022 - 23 FY 2021 FY 2016-20 2024 • Total AUM crossed 2022 ₹1.2 lakh Cr. FY 2010-15 2021 • Launched • LAP platform Consumer & Small 2016 • Increased branch • New LEAP LOS Digital platform digitization Enterprise Loan FY 1979-2010 network to 1204. (CSEL), Secured 2011 20

10. Slide 10: Highlights – Q1 FY24 (I)

    Highlights – Q1 FY24 (I) Particulars Q1 FY24 Vs Q1 FY23 Disbursement Disbursement at Rs.20,015 Cr, a growth of 50%. Business AUM Rs. 1,14,791 Cr in Q1 FY24 registering a growth of 40%. NIM 7.3% as compared to 8% PBT Rs.968 Cr, a growth of 27% PBT – ROTA 3.3% as compared to 3.7% Return on Equity 19.9

11. Slide 11: Highlights – Q1 FY24 (II)

    Highlights – Q1 FY24 (II) Particulars Q1 FY24 Vs Q1 FY23 • Well-diversified product portfolio spread across 1150 branches PAN India • Focused on financing of Commercial, Passenger, Two-wheelers, Tractors and VEHICLE FINANCE Construction Equipment in both New and Used Vehicles. Overview • Our focus c

12. Slide 12: Highlights – Q1 FY24 (III)

    Highlights – Q1 FY24 (III) Particulars Highlights ▪ CSEL - Offers Personal Loans, Professional Loans & Business Loans to salaried, self-employed professionals and micro & small businesses through traditional DSA/DST model, partnerships and FinTech's. – present in 380 locations (co-located) and have

13. Slide 13: Ecosystem Play in the MSME Sector

    Ecosystem Play in the MSME Sector Larger enterprises largely focused by Banks Large SME Focused by via SME business since the last 5 years Medium (SENP) Focused by via LAP business since the last 15 years Small (SENP & SEP) Focused by via CSEL business | New Business Mini (SENP) Focused by via SBPL|

14. Slide 14: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Top Domestic Institutional Holding Mutual Bodies Funds 3.55% • Axis Mutual Fund 17.68% • HDFC Mutual Fund • SBI Mutual Fund Public • Canara Robeco Mutual Fund 5.97% Promoters 51.46% • Birla Sun Life Mutual Fund Top Fore

15. Slide 15: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (7) 516 540 Punjab (24) Himachal Pradesh (17) Chandigarh (2) 1137 1145 1191 1204 Uttarakhand (18) Haryana (37) Sikkim (1) Arunachal Delhi (5) Pradesh (1) FY21 FY22 FY23 Q1 FY24 Rajasthan (83) UP (75) Assam (25) Physical Branch RL Meghalaya (3) Bihar (44)

16. Slide 16: Financial Performance

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17. Slide 17: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR CAGR Financials Snapshot YoY (5 (10 IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS years) years) Disbursem ents 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 35,490 66,532 87% 22% 20% Assets un

18. Slide 18: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 66,532 2% 13,703 6% 7% 16% 23% 5% 21% 14% 3,830 16% 5% 6% 15% 7% 9,299 14% * 35,490 13% * 26,043 1,896 2,618 624 5,536 1,542 78% 3,627 * 20,015 72% 39,699 60% 64% * 13,329 4,581 57% 2,121 1,454 25,439 611 2,679 20,249 2,036 8,562 11,301 FY21 FY22

19. Slide 19: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,14,796 * 1,06,498 11,337 1% 2% 9,521 4% 9,528 6% 9% 10% 7% 7% 8,451 8% * 81,925 8% 21% * 76,907 22,866 22% 22% 2,937 * 69,996 1,642 21,588 20% 20% 5,938 458 5,590 4,345 17,675 16,795 14,777 71

20. Slide 20: Chola – Disbursement Mix – Q1 FY24

    Chola – Disbursement Mix – Q1 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise SBPL 3 Wheeler 3 Wheeler 1% 4% 1% 2 Wheeler SBPL 2 Wheeler SME SME 4% 1% 5% CSEL 10% 3% 6% HL 8% CSEL Us ed Vehicles Us ed Vehicles 12% 18% 17% Tra ctor Tra ctor 4% 0.4%

21. Slide 21: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *15,027 *15,027 2666 165 165 *12,316 *11,708 2147 164 164 *9,560 164 1515 14,862 14,862 11,543 12,152 9,396 726 566 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Reserves and Surplus Equity Share Capital 21

22. Slide 22: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.9% 8.0% 3.0% 7.7% 7.3% 7.3% 2.8% 2.8% 2.7% 2.3% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 2.0% 3.9% 3.8% 3.7% 3.3% 1.5% 3.0% 1.3% 1.2% 0.9% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22

23. Slide 23: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 20.4% 20.6% 35.5 19.9% 32.5 18.9% 16.9% 27.6 26.2 18.5 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 P/E Ratio P/BV Ratio 32.1 30.2 6.2 27.5 23.5 5.0 22.4 4.8 4.4 4.1 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY2

24. Slide 24: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1o-Q1 Disbursements 13,329 20,015 50% 66,532 Closing Assets - Managed 86,703 1,22,755 42% 1,12,782 Operating Income 2,771 4,134 49% 12,978 Finance Charges 1,131 2,007 77% 5,749 Net Income 1,640 2,127 30% 7,229

25. Slide 25: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Jun22 Mar23 Jun23 ASSETS Financial Assets 86,235 1,12,075 1,23,212 Cash and Bank balance 3,850 2,961 5,544 Derivative financial instruments 206 273 259 Receivables 124 191 227 Loans 79,475 1,04,748 1,13,232 Investments 2,284 3,628 3,698 Other Financial

26. Slide 26: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Mar23 Jun23 Mar23 Jun23 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,07,077 1,15,731 100.0% 100.0% Stage 1 99,913 1,08,126 93.31% 93.43% Stage 2 3,943 4,059 3.68% 3.51% Stage 3 3,222 3,546 3.01% 3.06% Provision 2,329 2,499 2.17% 2.16% Stage 1 445

27. Slide 27: Stagewise ECL Summary – Jun 23

    Stagewise ECL Summary – Jun 23 Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,07,894 466 1,07,428 93.23% 0.43% 92.83% Stage 1B (B ) 232 11 221 0.20% 4.71% 0.19% Total Stage 1 (C ) 1,08,126 477 1,07,649 93.43% 0.44% 93.02% - Stage 2A (D ) 2,859 263 2,596 2.47% 9.

28. Slide 28: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise Closing Gross Stage 3 ECL Provision Net Net Asset Class Asset Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Jun23 1,15,731 3,546 3.06% 1,610 45.40% 1,936 1.67% VF 72,657 2,432 3.35% 1,106 45.48% 1,326 1.83% LAP 22,345 854 3.82% 383 44.90% 470 2.10% HL 9,234 144 1.56

29. Slide 29: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Jun23 is at 4.30% and 2.82% respectively. 29

30. Slide 30: Business Overview

    Business Overview 30

31. Slide 31: Vehicle Finance

    Vehicle Finance

32. Slide 32: Vehicle Finance: Q1 FY24 Performance

    Vehicle Finance: Q1 FY24 Performance • Disbursements grew by 32% in Q1 FY24 to Rs.11,301 Cr as compared Disbursements to Rs.8,562 Cr in Q1 FY23. Assets under • AUM have grown by 28% YoY. management Loss and • Loan losses dropped to 1.5% in Q1 FY24 from 2.1% in Q1 FY23. provisions • PBT grew by 4% in

33. Slide 33: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment witnessed flat ▪ Increased demand for Light commercial vehicle will growth in Q1 FY’24, this is due to the high base effect help us garner higher volumes, we will continue to of the

34. Slide 34: Sector outlook – Vehicle Finance business (2/3)

    Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a ▪ Our focus continues to be on retail customers growth of 10% in Q1 FY’24 with an all-time high sales especially in smaller towns and rural areas. We in the first quarter

35. Slide 35: Sector outlook – Vehicle Finance business (3/3)

    Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a growth ▪ Our exposure in this segment is around 7% at of 14% in Q1 FY’24 supported by improvement in a portfolio level with emphasis on building a construction, mining activitie

36. Slide 36: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year (in Units) Chola 4 year (in Units) Chola YoY growth rate -11% Chola YoY growth rate 14% CAGR 40% CAGR 46% 67266 177330 CAGR @ 10% 52705 CAGR @ 5% 43065 110108 109939 25134 54037 20526 7355 Q1 FY21 Q1 FY22 Q1 F

37. Slide 37: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) Chola 4 year Chola YoY growth rate 22% Chola 4 year Chola YoY growth rate -3% (in Units) CAGR 122% CAGR 50% 98360 1467329 CAGR @ 10% CAGR @ 10% 61634 998382 61074 911096 647848 25053 153861 3628 Q1 FY21 Q1

38. Slide 38: Vehicle Finance—Business Model & Positioning

    Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a

39. Slide 39: Vehicle Finance—Business Model & Positioning

    Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re

40. Slide 40: Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24

    Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadar and Nagar Haveli Nagar Haveli & Daman and & Daman and MP Diu AP Diu MP AP Karnataka 0.04% Karnataka Maharashtra 0.04% Maharashtra 6% Kerala Keral

41. Slide 41: Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24

    Vehicle Finance - Disbursement/Portfolio Mix – Q1 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE 1% CE 7% 5% 0.3% 6% 6% LCV 2 Wheeler 17% 2 Wheeler 6% 9% LCV 21% MUV 9% Used Vehicles MUV 27% Used Vehicles 9% CAR 32%

42. Slide 42: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 * 11,301 6% 6% 7% 7% 6% 882 * 10,446 653 6% 6% 5% 5% 1,053 9% 584 687 19% 19% 17% 17% 560 * 8,562 * 8,502 2,211 1,936 18% Yield Low 502 468 1,816 9% 9% 556 479 9% 9% 1,077 1,0

43. Slide 43: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 6% 6% 7% 7% 7% * 71,065 * 66,938 7% 7% 7% 7% 7% 4,721 * 61,285 4,487 4,878 * 57,606 21% 21% 21% 21% 21% * 55,376 3,990 4,742 Medium Yield Low Yield 3,666 4,126 3,557 14,814 4,015 14,032 4,000 8

44. Slide 44: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *71,065 39,699 * 66,938 146 215 *55,376 *52,881 *50,415 547 693 25,439 1,479 20,249 70,918 66,723 52,187 54,829 48,937 11,301 8,562 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY

45. Slide 45: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 2,272 8,851 2,054 7,721 7,440 1,287 2,498 2,013 480 501 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 45

46. Slide 46: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.8% 8.9% 8.4% 3.3% 3.3% 3.3% 7.8% 7.2% 2.8% 2.7% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 2.5% 4.1% 3.9% 3.6% 2.1% 2.9% 2.7% 1.4% 1.5% 1.2% FY21 FY22 FY23 Q1 FY23 Q

47. Slide 47: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1o-Q1 Disbursements 8,562 11,301 32% 39,699 Closing Assets - Managed 55,376 71,065 28% 66,938 Operating Income 2,013 2,498 24% 8,851 Finance Charges 811 1,258 55% 3,906 Net Income 1,202 1,239 3% 4,9

48. Slide 48: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1-o-Q1 Disbursements 8,562 11,301 32% 39,699 Closing Assets (On B/S) 54,829 70,918 29% 66,723 Operating Income 1,992 2,491 25% 8,786 Finance Charges 798 1,254 57% 3,870 Net Income 1,194 1,237 4% 4,9

49. Slide 49: Loan Against Property

    CO eee ets Loan Against Property

50. Slide 50: Loan Against Property – Q1 FY24 Performance

    Loan Against Property – Q1 FY24 Performance • Disbursements grew by 32% in Q1 FY24 to Rs.2,679 Cr as compared Disbursements to Rs.2,036 Cr in Q1 FY23. Asset under • AUM grew by 29% YoY. management Loss and provisions • Loan losses dropped to -0.14% in Q1 FY24 from -0.09% in Q1 FY23. Profit before ta

51. Slide 51: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth at a • Chola’s LAP team is currently focusing on increasing its rate of 10-12% for FY24, on back of favorable economic market share backed by consistent disbursement condit

52. Slide 52: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 22,866 * 21,588 1,030 9,299 1,114 * 16,795 * 17,675 1,418 * 14,777 1,544 2,062 5,536 21,836 20,474 3,627 15,250 16,257 12,716 2,679 2,036 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23

53. Slide 53: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 2,292 759 1,807 1,642 469 306 704 224 200 503 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 53

54. Slide 54: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 1.4% 5.7% 1.4% 5.5% 5.4% 4.9% 1.2% 1.2% 4.3% 1.0% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 1.1% 4.7% 4.0% 4.0% 0.7% 3.0% 2.2% 0.1% -0.1% -0.1% FY21 FY22 FY23

55. Slide 55: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1o-Q1 Disbursements 2,036 2,679 32% 9,299 Closing Assets - Managed 17,675 22,866 29% 21,588 Operating Income 503 704 40% 2,292 Finance Charges 257 408 59% 1,243 Net Income 246 296 20% 1,048 Ex

56. Slide 56: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1-o-Q1 Disbursements 2,036 2,679 32% 9,299 Closing Assets (On B/S) 16,257 21,836 34% 20,474 Operating Income 453 672 48% 2,152 Finance Charges 227 384 69% 1,134 Net Income 226 288 27% 1,018 Ex

57. Slide 57: Home Loans

    Home Loans

58. Slide 58: Home Loans – Q1 FY24 Performance

    Home Loans – Q1 FY24 Performance • Disbursements grew by 138% in Q1 FY24 to Rs.1,454 Cr as compared Disbursements to Rs.611 Cr in Q1 FY23. Asset under • AUM have grown by 60% YoY. management Loss and provisions • Loan losses dropped to -0.1% in Q1 FY24 from 0.4% of Q1 FY23. Profit before tax • PBT g

59. Slide 59: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • The overall growth in HFCs is expected to remain at • Chola continues to diversify its geographical mix 12-14% in FY24; Impact of excess rainfall in parts of through expanding presence in the North, East & West the country could impact

60. Slide 60: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *9,528 3,830 413 *8,451 433 *5,938 *5,590 500 527 *4,345 1,896 9,115 620 8,018 138% 1,454 5,063 5,438 1,542 3,726 611 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 On Book Assigned

61. Slide 61: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 971 321 692 222 519 344 112 85 87 204 FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 61

62. Slide 62: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.4% 3.9% 7.7% 8.0% 7.7% 7.0% 2.9% 2.4% 2.2% 2.1% FY21 FY22 FY23 Q1 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 1.5% 5.9% 4.8% 4.5% 3.9% 0.9% 3.1% 0.3% 0.4% -0.1% FY21 FY22 FY23 Q1 FY23 Q1 F

63. Slide 63: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1o-Q1 Disbursements 611 1,454 138% 3,830 Closing Assets - Managed 5,938 9,528 60% 8,451 Operating Income 204 344 68% 971 Finance Charges 84 171 104% 433 Net Income 120 173 44% 537 Expenses 30 88 189% 193

64. Slide 64: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Particulars Q1 FY23 Q1 FY24 FY23 Q1-o-Q1 Disbursements 611 1,454 138% 3,830 Closing Assets (On B/S) 5,438 9,115 68% 8,018 Operating Income 185 331 79% 907 Finance Charges 74 162 119% 395 Net Income 111 169 53% 512 Expenses 30 88 189% 193

65. Slide 65: Funding Profile

    ih onda (CCT Corres tana

66. Slide 66: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 73,929 * 79,321 * 89,305 * 97,356 * 1,08,140 4% 4% 7% 6% 6% 2% 3% 2% 3% 3% 7% 6% 9% 10% 4% 5% 15% 2% 2% 4% 4% 4% 4% 3% 17% 18% 4% 18% 16% 15% 58% 58% 52% 54% 49% 5% 5% 4% 5% 5% Q1 FY23 Q2 FY23 Q3 FY23 Q4FY23 Q1FY24 Tier I

67. Slide 67: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 73,929 * 79,321 * 89,305 * 97,356 * 1,08,140 6% 7% 9% 10% 3% 15% 2% 3% 3% 1% 3% 3% 4% 1% 1% 3% 3% 3% 1% 3% 66% 66% 64% 65% 61% 1% 1% 1% 5% 6% 1% 1% 5% 6% 6% 11% 9% 10% 8% 7% 4% 3% 3% 3% 3% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1

68. Slide 68: ALM Statement as of 30th Jun 2023 (As per IND AS)

    ALM Statement as of 30th Jun 2023 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2023 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 4,792.32 0.13 2,274.97 0.02 - - - 1.24 7,068.68 Advances 3,922.79 3,642.08 2,768.83 10,532.27 17,093.7

69. Slide 69: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 19.07 17.13 17.44 5.41 3.93 3.13 2.35 2.30 15.28 15.14 16.49 14.78 15.14 FY20 FY21 FY22 FY23 Q1 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Car

70. Slide 70: Consolidated Financials

    Consolidated Financials 70

71. Slide 71: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Q1 Q1 Growth % Particulars FY23 FY23 FY24 Q1-o-Q1 Income 2,796 4,171 49% 13,106 Expenses 2,032 3,215 58% 9,491 PBT 764 956 25% 3,615 PAT 562 710 26% 2,665 71 Note: Above financials includes Chola Sec, Chola Home Finance, Paytail and Payswiff.

72. Slide 72: Environmental Social Governance

    Environmental Social Governance 72

73. Slide 73: Consecutively awarded for last 4 years

    Consecutively awarded for last 4 years……. FY21 • FTSE Russell - Included in FTSE4 Good Index series FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. FY 23 • CRISIL ESG rating – S

74. Slide 74: Risk Management

    Risk Management 74

75. Slide 75: Risk Governance Structure

    Risk Governance Structure ▪ Oversee the entire risk management process Board of Directors ▪ Formed in 2007-08 ▪ Meet four times in a year Risk Management ▪ Periodic review of framework, Committee process, key risk movement and other initiatives Executive Director ▪ Review the risk management process

76. Slide 76: Key Functions of Risk Management Division

    Key Functions of Risk Management Division • Identify key risks in each function/business • Assess the risks in terms of probability of occurrence and their impact • Identify mitigation/ risk controls put in place by respective process champions • Identify key risk indicators to measure and monitor r

77. Slide 77: ERM as Value Centre in Business Processes

    ERM as Value Centre in Business Processes • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management and channels risk profiles prioritization for collection efforts Underwriting models to Customer retention optimally onboard risk

78. Slide 78: ERM as Value Centre in Corporate Processes

    ERM as Value Centre in Corporate Processes • Periodic engagement with internal audit team to incorporate key observations on process failures identified by IA team which will be considered as part of risk review process. ERM also gives risk-based inputs to internal audit team to plan and prioritize

79. Slide 79: Information Technology

    Information Technology 79

80. Slide 80: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all • Drive increased adoption of hybrid cloud solutions and • Expand features in the cloud-native design customer App for adopt clo

81. Slide 81: Contact us

    Contact us Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Our registered Chennai 600001. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–3000 7172 http://www.cholamandalam.com Sujatha P-Executive Vice President &

82. Slide 82: Disclaimer

    Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and Finance Company Ltd and its subsidiaries. There can

83. Slide 83: Thank You

    xox Chola Enter a better life murugappa THANK YOU Dare House, No. 2, N.S.C. Bose Road, Parrys, Chennai — 600001., Phone : 044 4090 7172; Fax :044 2534 6464, E-m: Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company — Investor Presentation (June 2023) on 6ix