Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Debt Investor Presentation (August 2023)
29 slides from Creditaccess Grameen's debt investor presentation, August 2023
Slide 1: CreditAccess Grameen Limited Corporate Presentation
CreditAccess Grameen Limited Corporate Presentation August 2023 www.creditaccessgrameen.in
Slide 2: 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 II Prospectus dated August 18, 2023 (“Tranche
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 rural women predominantly in the rural areas of India ✓ Diverse product suite catering to entire customer life cycle ✓ Calibrated, contiguous district-based
Slide 5: Key Milestones
Key Milestones Received the order from NCLT to amalgamate Madura Micro Finance ✓ Strong commitment by CAI (CreditAccess India B.V.) Limited into Credit Access Grameen Limited ✓ Independent, stable and professional management team 2023 Entered in 5 new states – Jharkhand, Rajasthan, Gujarat, Uttar Pr
Slide 6: Corporate Structure
Corporate Structure CreditAccess India B. V (Promoter) 66.77% CreditAccess Grameen Limited (Publicly Listed) 100% CreditAccess India Foundation * Based on equity shareholding as on June 30, 2023 www.creditaccessgrameen.in 6
Slide 7: Promoter Background
Promoter Background Committed to Micro Finance Business Strong Financial Support • CreditAccess India B.V. (CAI) specialises in Micro & Small • Invested through multiple rounds of capital funding along Enterprises financing with secondary purchases during 2009 to 2017 • Widely held shareholding base
Slide 8: Shareholding Pattern
Shareholding Pattern Shareholding Pattern – June 30, 2023 Others, 11.76% MF, AIF, Insurance, Promoter 11.91% Group, 66.77% FPI, 9.56% www.creditaccessgrameen.in 8
Slide 9: Credit Ratings
Credit Ratings CA Grameen June 30, 2023 FY23 FY22 FY21 Credit Rating – ICRA AA- (Stable) AA- (Stable) A+ (Stable) A+ (Stable) Credit Rating – Ind-Ra AA- (Stable) AA- (Stable) A+ (Stable) A+ (Stable) Credit Rating – CRISIL A+ (Positive) A+ (Positive) A+ (Stable) A+ (Stable) Comprehensive Microfinance
Slide 10: Discussion Summary
Discussion Summary Business Overview Business Model & Strategy Key Performance Highlights Issue Details www.creditaccessgrameen.in 10
Slide 11: Key Differentiators
Business Strategies & Competitive Strengths 2 3 Continuous Calibrated Expansion Technology Through Contiguous Enhancement to District-Based Drive Operational Approach Efficiency 1 4 Customer Centric Key Differentiators Business Model Classical (JLG) Model 6 5 Experienced Senior Integrating Risk Mana
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 Tenure Loan Customer Centric Ticket Size Purpose (weeks / Diverse product suite: Type Products (INR) months ) • Income generation, education, festival, medical, emergency, wat
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 terms collateral – of - ✓ Strong group bonding ✓ Formulation of Board approved policies ✓ Mutual support – both financial &
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 Customer Employee Target Customer Customer Employee District-based Lending Model Engagement Incentive Segment Due-Dilige
Slide 17: Unique Human Capital, Internal Audit & Risk Management
Unique Human Capital, Internal Audit & Risk Management Well-Established Operational Structure Multi-Pronged Approach For Risk Management Sound Understanding of Business Heads Rural Market Internal Audit (IA): Employees are predominantly hired • IA frequency – 6 times in a year at branches, 4 times a
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 Jun-23 14 States & 1 UT June 2023 Branches 353 Districts Karnataka 319 1,826 Branches Maharashtra 306 Uttar Pradesh 80 Tamil Nadu 383 Madhya Pradesh 148 Rajasthan Bihar Other States & UT 670 100 145 Total 1,826 Gujarat West Bengal 68 June 202
Slide 20: Positive ALM Continues to Contribute Growth
Positive ALM Continues to Contribute Growth Positive ALM Mismatch (in Months) 24.25 24.41 22.55 22.48 18.96 19.23 15.61 15.72 FY21 FY22 FY23 Q1 FY24 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 23% CAGR 12% CAGR 6% 21,814 1,786 1,826 4,423 21,031 4,264 1,635 3,912 3,824 1,424 16,599 13,587 FY21 FY22 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY24 www.creditaccessgrameen
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 11% 14% 15% 19% 20% 24% 19% 24% 25% 8% 7% 32% 37% 37% 8% 7% 6% 8% 19% 8% 8% 8% 21% 20% 20% 9% 25% 8% 8% 24% 22% 21% 27% 23% 23% 21% 21% 21% 21% 21% 22% 21% 20% 2
Slide 23: Consolidated Historical Performance Trend (3/4)
Consolidated Historical Performance Trend (3/4) Total Revenues (INR Cr) Net Interest Margin (%) 3,551 2,750 2,466 13.0% 10.7% 10.9% 11.6% 1,171 FY21 FY22 FY23 Q1 FY24 FY21 FY22 FY23 Q1 FY24 PAT (INR Cr) EPS - Diluted (INR) 826 51.82 353 348 22.20 21.80 127 8.31 FY21 FY22 FY23 Q1 FY24 FY21 FY22 FY23
Slide 24: Consolidated Historical Performance Trend (4/4)
Consolidated Historical Performance Trend (4/4) Repayment Rate % Asset Quality % 92.21% 93.19% 97.36% 98.67% 4.45% 3.65% 1.34% 1.21% 1.44% 0.35% FY21 FY22 FY23 Q1 FY24 FY21 FY22 FY23 Gross Stage 3 % Net Stage 3 % Net Worth (INR Cr) Capital Adequacy (%) 5,398 1.25% 5,048 0.67% 4,207 0.89% 0.92% 3,845
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 IND AA-/Stable by India Ratings instrument Tranche II Issue Size ₹ 1,000 crore (Base Issue Size - ₹ 400 crore ; Green
Slide 28: Specified Terms of the NCD
Specified Terms of the NCD Series I II III IV* V VI VII VIII Frequency of Interest Payment Monthly Cumulative 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 NC
Slide 29: Thank You!
Thank You Thank You! 29 www.creditaccessgrameen.in www.creditaccessgrameen.in
CreditAccess Grameen — Debt Investor Presentation (August 2023) on 6ix