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

Cholamandalam Investment And Finance — Investor Presentation (May 2023)

88 slides from Cholamandalam Investment And Finance's investor presentation, May 3, 2023

1. Slide 1: Cover letter to stock exchanges on board meeting outcome

   May 3, 2023 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, Kamala Mills 1st Floor, P.J. Towers Compound, Senapati Bapat Marg, Dalal Street, Fort, Lower Parel, Mumbai 400 001 Mumbai 400 013 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243 Dear

2. Slide 2: Board outcome: dividend, AGM, director re-appointments

   //2// Further, please find enclosed the disclosure on related party transactions on a consolidated basis and balances for the half year ended 31st March, 2023 pursuant to reg.23(9) of the Listing Regulations. The said disclosure is also being made available on the company’s website www.cholamandalam

3. Slide 3: Schedule of analysts/investors call

   //3// 6. Schedule of Analysts / Investors call: Pursuant to Regulation 30(2) of the Listing Regulations, details of the schedule of Analyst / Investors call in connection with the audited financial results (Standalone and Consolidated) for the year ended 31st March, 2023 is given below: Date Organis

4. Slide 4: Corporate Presentation - March 2023

   CORPORATE PRESENTATION - March 2023

5. Slide 5: 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

6. Slide 6: Murugappa Group Overview

   Murugappa Group Overview 3

7. Slide 7: Murugappa Group in a Nutshell

   Murugappa Group in a Nutshell Consolidated Group Market 122 Years of $7.0 $27.1 Turnover cap (as on 31st Years Existence B B (FY22) Mar 2023) Listed 3 Sectors 29 Businesses 10 Companies 40 Geographical 105 Manufacturing 53,000+ Work force Countries Presence Locations Locations 4

8. Slide 8: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 34,147 1,13,753 72,738 Turnover (Cr.) 23,431 8,432 15,049 PAT(Cr.) 1,788 1,341 2,305 Market Cap(Cr.) 25,851 8,296 18,802 49,130 62,607 NA 10,132 Turnover (Cr.) 19,068 4,363 3,290 15350 10,141 4.824 84

9. Slide 9: Corporate Overview

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10. Slide 10: 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

11. Slide 11: Cholamandalam Investment & Finance Company Limited

    Cholamandalam Investment & Finance Company Limited 25.1 lakh + customers 44,922 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 25.1 lakh plus customers till date 200 plus employees in year 2000 to 44,000+ employees today Rs. 1.

12. Slide 12: Our journey so far

    Our journey so far FY 2022-23 FY 2021-22 2023 FY 2020-21 • Total AUM crossed ₹1 lakh Cr. 2022 • Increased branch • Reaffirmed as network to 1191. FY 2015-20 constituent of • Increased presence 2021 FTSE4Good Index in 516 locations • Increased branch Series through RLH FY 2010-15 network to 1137. • H

13. Slide 13: Highlights – Q4FY23 & FY23 (I)

    Highlights – Q4FY23 & FY23 (I) Particulars Q4FY23 Vs Q4FY22 FY23 Vs FY22 Highest ever disbursement of Rs.21,020 Cr, a Highest ever disbursement of Rs.66,532, a growth of Disbursement growth of 65%. 87% PBT At Rs.1,159 Cr, a growth of 25% At Rs.3,600 Cr, a growth of 25% PBT - ROTA At 4.4% At 3.8% Ret

14. Slide 14: Highlights – Q4FY23 & FY23 (II)

    Highlights – Q4FY23 & FY23 (II) Particulars Q4FY23 Vs Q4FY22 FY23 Vs FY22 • Well-diversified product portfolio spread across 1133 branches PAN India VEHICLE FINANCE • Focused on financing of Commercial, Passenger, Two-wheelers, Tractors and Construction Overview Equipment in both New and Used Vehicl

15. Slide 15: Highlights – Q4FY23 & FY23 (III)

    Highlights – Q4FY23 & FY23 (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 352 locations (co-located) and

16. Slide 16: 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|

17. Slide 17: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Bodies Top Domestic Institutional Holding Mutual 3.86% • Axis Mutual Fund Funds 18.46% • HDFC Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund Public Promoters 6.14% 51.47% • Canara Robeco Mutual Fund Top Fore

18. Slide 18: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (7) Punjab (24) 1191 Himachal Pradesh (17) Chandigarh (2) 1166 Uttarakhand (18) 1148 1151 Haryana (35) 1145 Sikkim (1) Arunachal Delhi (5) Pradesh (1) Rajasthan (83) UP (74) Assam (25) FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Meghalaya (3) Bihar (44) Gujarat

19. Slide 19: Financial Performance

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20. Slide 20: 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

21. Slide 21: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 66,532 2% 2% 2% 13,703 4% 5% 6% 7% 5% 21% 13% 13% 3,830 14% 16% 6% 9,299 * 30,451 14% * 35,490 474 2,618 * 29,091 * 26,043 1,896 1,157 537 1,505 624 5,536 3,837 82% 3,662 … 80% 78% 3,627 72% 39,699 60% 24,983 23,387 25,439 20,249 FY19 FY20 FY21 F

22. Slide 22: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,06,498 9,521 0% 0% 1% 4% 2% 5% 6% 9% 8,451 7% 21% 21% 8% * 76,907 21% 21,588 22% * 69,996 1,642 458 5,590 20% * 60,549 4,345 * 54,279 258 16,795 135 3,125 14,777 1,912 12,960 11,626 75% 73% 72

23. Slide 23: Chola – Disbursement Mix – FY23

    Chola – Disbursement Mix – FY23 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler 0.4% 2 Wheeler SBPL 0.4% 2 Wheeler 5% 1% SBPL SME SME 4% 1% 10% 3% CSEL 5% HL CSEL 8% Used Vehicles 10% 17% Used Vehicles 18% HL Tractor 6% Tractor 5% 4

24. Slide 24: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *14,296 164 2666 *11,708 164 *9,560 2147 164 *8,172 164 *6,176 14,132 1515 156 11,543 1186 1052 9,396 8,008 6,019 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Reserves and Surplus Equity Share Capital 21

25. Slide 25: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.9% 7.7% 3.0% 7.3% 2.8% 7.0% 6.9% 2.6% 2.6% 2.3% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Loan Losses & Provisions (%) ROA - PBT (%) 2.0% 3.9% 3.8% 3.7% 1.6% 3.0% 2.7% 1.2% 0.9% 0.7% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 22

26. Slide 26: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 32.5 20.9% 20.4% 20.6% 26.2 16.9% 15.2% 18.5 15.2 13.4 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 P/E Ratio P/BV Ratio 30.2 5.0 4.8 27.5 4.4 23.5 3.7 19.1 11.4 1.5 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 23 Not

27. Slide 27: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 3,635 13,329 8,706 14,623 10,430 17,559 12,718 21,020 65% 35,490 66,532 87% Closing Assets - Managed 75,763 86,703 75

28. Slide 28: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Mar21 Mar22 Mar23 ASSETS Financial Assets 73,365 81,081 1,12,075 Cash and Bank balance 5,232 4,220 2,961 Derivative financial instruments 46 187 273 Receivables 66 128 191 Loans 65,839 74,149 1,04,748 Investments 1,619 2,076 3,628 Other Financial Assets

29. Slide 29: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Mar-22 Mar-22 Mar-22 Mar23 Mar23 Mar23 Mar-22 Mar-22 Mar-22 Mar23 Mar23 Mar23 Mgt Mgt Mgt Mgt Particulars Normal Total Normal Total Normal Total Normal Total Overlay Overlay Overlay Overlay INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to GA %

30. Slide 30: Stagewise ECL Summary – Mar23

    Stagewise ECL Summary – Mar23 Normal Mgmt Total Normal Mgmt Total Particulars Asset Model Overlay Provn NNPA Asset Model Overlay Provn NNPA Rs in Cr % Stage 1A (A ) 99,641 431 - 431 99,210 93.06% 0.43% - 0.43% 92.65% Stage 1B (B ) 272 13 - 13 258 0.25% 4.93% - 4.93% 0.24% Total Stage 1 (C ) 99,913 4

31. Slide 31: 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% Mar23 1,07,077 3,222 3.01% 1,482 46.00% 1,740 1.62% VF 68,322 2,189 3.20% 995 45.44% 1,195 1.75% LAP 20,995 844 4.02% 394 46.71% 449 2.14% HL 8,142 126 1.55%

32. Slide 32: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Mar23 is at 4.63% and 3.11% respectively. 29

33. Slide 33: Business Overview

    Business Overview 30

34. Slide 34: Vehicle Finance

    Vehicle Finance

35. Slide 35: Vehicle Finance: Q4FY23 & FY23 Performance

    Vehicle Finance: Q4FY23 & FY23 Performance • Disbursements grew by 39% in Q4FY23 to Rs.12,190 Cr as compared Disbursements to Rs.8,785 Cr in Q4FY22 and by 56% to Rs.39,699 Cr in FY23 as compared to Rs.25,439 Cr in FY22. Assets under • AUM have grown by 27% YoY. management Loss and • Loan losses at 0

36. Slide 36: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment had a growth ▪ Increased demand for Light commercial vehicle will of 13% in Q4 FY’23 & 35% in FY’23. The segment is help us in increased share of volumes, however we expected to hav

37. Slide 37: 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 11% in Q4 FY’23 & an all-time high sale especially in smaller towns and rural areas. We with 27% growth in FY’23

38. Slide 38: 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 21% in Q4 FY’23 & 26% in FY’23 supported by a portfolio level and our focus will be on improvement in the overall macroe

39. Slide 39: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) Chola 4 year Chola YoY growth rate 19% Chola 4 year Chola YoY growth rate 43% CAGR (10%) (in Units) CAGR 7% 5,95,115 3,10,844 4,57,481 CAGR @ 12% CAGR @ 12% 1,92,947 2,00,811 3,58,750 3,37,684 1,76,381 2,94,324

40. Slide 40: 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 50% Chola 4 year Chola YoY growth rate 84% CAGR 15% (in Units) CAGR 13% 380541 51,80,514 296501 CAGR @ 14% 38,97,220 CAGR @ 11% 30,74,383 197641 27,74,159 27,13,470 16525

41. Slide 41: 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

42. Slide 42: 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

43. Slide 43: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q4FY23 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadra and Nagar Nagar Haveli Haveli & & Daman and MP Daman and Diu AP MP Diu AP Karnataka Karnataka 0.04% Maharashtra Maharashtra 0.04% 6% Kerala 6% 5%

44. Slide 44: Vehicle Finance - Disbursement/Portfolio Mix – Q4 FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q4 FY23 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler HCV CE HCV CE 0.3% 1% 8% 7% 7% 7% 2 Wheeler 2 Wheeler 8% 6% LCV LCV 18% 21% Used Vehicles MUV Used Vehicles 27% 9% MUV 30% 8% CAR

45. Slide 45: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 882 7% 6% 6% 7% 7% * 10,446 8% 6% 6% 5% 1,053 9% 687 * 8,785 560 19% 19% 17% * 8,562 * 8,502 2,211 18% 18% Yield 572 Low 502 468 1,816 9% 664 556 479 7% 9% 9% 1,077 9% 1,579 1

46. Slide 46: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 66,938 6% 6% 6% 7% 7% * 61,285 4,487 * 57,606 7% 7% 7% 7% 7% * 55,376 3,990 4,742 * 52,881 3,666 Medium Yield Low Yield 4,126 3,557 21% 21% 21% 21% 21% 3,395 4,015 14,032 4,000 3,914 12,810 1

47. Slide 47: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 66,938 39,699 215 *52,881 *50,415 693 *44,206 1,479 24,983 25,439 23,387 *40,606 2,056 20,249 66,723 52,187 48,937 40,606 42,150 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 On Book As

48. Slide 48: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 8,851 2,272 2,054 7,721 7,440 6,624 5,485 1,269 1,287 945 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 45

49. Slide 49: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.8% 3.3% 3.3% 8.4% 7.8% 3.0% 3.0% 7.5% 7.2% 2.7% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Loan Losses & Provisions (%) ROA - PBT (%) 4.1% 2.5% 3.9% 3.6% 1.9% 2.7% 1.4% 2.2% 1.2% 0.9% FY19 FY20 FY21 FY22 FY23 FY19 FY20 F

50. Slide 50: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 2,846 8,562 6,161 8,502 7,647 10,446 8,785 12,190 39% 25,439 39,699 56% Closing Assets - Managed 48,403 5

51. Slide 51: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4 FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 2,846 8,562 6,161 8,502 7,647 10,446 8,785 12,190 39% 25,439 39,699 56% Closing Assets (On B/S) 47,108 5

52. Slide 52: Loan Against Property

    CO eee ets Loan Against Property

53. Slide 53: Loan Against Property – Q4FY23 & FY23 Performance

    Loan Against Property – Q4FY23 & FY23 Performance • Disbursements grew by 48% in Q4FY23 to Rs.2,762 Cr as compared to Disbursements Rs.1,870 Cr in Q4FY22 and by 68% to Rs.9,299 Cr in FY23 as compared to Rs.5,536 Cr in FY22. Asset under • AUM grew by 29% YoY. management • Loan losses at 0.5% in Q4FY2

54. Slide 54: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL expects MSME LAP segment to grow at 6-8% in FY23, • Chola’s LAP team is currently focusing on increasing its driven by improving economic conditions and the mild impact market share backed by consistent disbursement of

55. Slide 55: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 21,588 1,114 9,299 * 16,795 * 14,777 1,544 * 12,960 2,062 * 11,626 2,425 1,671 5,536 20,474 15,250 3,837 3,662 3,627 12,716 9,954 10,536 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 F

56. Slide 56: 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 1,479 469 1,248 305 306 244 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 53

57. Slide 57: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.5% 1.4% 4.9% 1.2% 4.3% 1.1% 1.0% 1.0% 3.8% 3.8% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Loan Losses & Provisions (%) ROA - PBT (%) 4.0% 1.1% 3.0% 2.8% 0.7% 0.7% 2.2% 2.0% 0.1% -0.03% FY19 FY20 FY21 FY22 FY23 FY

58. Slide 58: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 382 2,036 1,624 2,246 1,661 2,255 1,870 2,762 48% 5,536 9,299 68% Closing Assets - Managed 14,509 1

59. Slide 59: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 382 2,036 1,624 2,246 1,661 2,255 1,870 2,762 48% 5,536 9,299 68% Closing Assets (On B/S) 12,552 16

60. Slide 60: Home Loans

    Home Loans

61. Slide 61: Home Loans – Q4FY23 & FY23 Performance

    Home Loans – Q4FY23 & FY23 Performance • Disbursements grew by 156% in Q4FY23 to Rs.1,405 Cr as compared Disbursements to Rs.549 Cr in Q4FY22 and by 102% to Rs.3,830 Cr in FY23 as compared to Rs.1,896 Cr in FY22 Asset under • AUM have grown by 51% YoY. management • Loan losses dropped to -0.3% in Q4

62. Slide 62: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • Demand remained robust in Q4FY23 and Affordable • Chola continues to expand its geographical footprint HFC growth is expected to be between 18 - 22% in in the North, East & West Zones while continuing to FY24. deepen its footprint in th

63. Slide 63: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *8,451 433 3,830 102% *5,590 527 *4,345 620 8,018 1,896 *3,125 1,505 1,542 677 *1,912 5,063 - 3,726 1,157 2,449 1,912 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 On Book Assigned * Total AUM

64. Slide 64: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 971 321 692 222 519 357 112 189 64 38 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 61

65. Slide 65: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.7% 8.0% 7.0% 3.0% 2.8% 2.9% 6.1% 6.1% 2.4% 2.2% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Loan Losses & Provisions (%) ROA - PBT (%) 4.8% 1.5% 4.5% 3.1% 0.9% 2.8% 0.8% 2.5% 0.3% 0.3% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21

66. Slide 66: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 (YTD) Q4-o-Q4 Y-o-Y Disbursements 203 611 605 743 539 1,072 549 1,405 156% 1,896 3,830 102% Closing Assets - Managed 4,407 5,938 4,880 6,454 5,2

67. Slide 67: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q3 FY22 Q3 FY23 Q4FY22 Q4FY23 FY22 FY23 Q4-o-Q4 Y-o-Y Disbursements 203 611 605 743 539 1,072 549 1,405 156% 1,896 3,830 102% Closing Assets (On B/S) 3,805 5,438 4,301 5,976 4,702 6,82

68. Slide 68: Funding Profile

    ih onda (CCT Corres tana

69. Slide 69: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 63,730 * 69,174 * 73,929 * 79,321 * 89,305 * 97,356 4% 4% 4% 4% 7% 6% 3% 2% 2% 5% 2% 3% 3% 7% 6% 7% 6% 9% 10% 4% 5% 6% 2% 2% 2% 4% 4% 3% 4% 4% 15% 17% 18% 15% 18% 16% 55% 61% 58% 58% 52% 54% 7% 6% 5% 5% 4% 5% Mar-21 Mar-2

70. Slide 70: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 63,730 * 69,174 * 73,929 * 79,321 * 89,305 * 97,356 7% 5% 6% 7% 9% 3% 10% 2% 2% 3% 3% 1% 2% 1% 3% 3% 5% 3% 4% 1% 3% 6% 1% 3% 66% 66% 66% 69% 64% 65% 1% 1% 1% 3% 1% 5% 6% 1% 4% 5% 6% 4% 11% 9% 10% 9% 9% 8% 2% 3% 4% 3% 3% 3%

71. Slide 71: ALM Statement as of 31st Mar 2023 (As per IND AS)

    ALM Statement as of 31st Mar 2023 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 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 1,964.63 1,000.00 5.96 375.76 163.61 - 850.00 682.28 5,042.24 Advances 6,993.54 4,324.67 2,954.46 9,75

72. Slide 72: 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 17.36 17.13 5.41 3.93 3.13 4.92 2.35 15.28 15.14 16.49 14.78 12.44 FY19 FY20 FY21 FY22 FY23 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care I

73. Slide 73: NCD – Maiden Issue

    NCD – Maiden Issue Series I II III* IV V VI Frequency of Interest Payment Annual Cumulative Annual Cumulative Annual Cumulative Minimum Application ₹ 10,000 (10 NCDs) across all series In Multiples of thereafter (₹) ₹ 1,000 (1 NCD) Face Value/ Issue Price of NCDs (₹/ ₹ 1,000 NCD) Tenor 22 months 22

74. Slide 74: NCD – Issue Status

    NCD – Issue Status Categorywise Oversubscrip Category Issue size(Cr) Total No of times tion (C-B) Institution 200 710.31 510.31 3.55x Corporate 250 1311.3 1061.27 5.25x HNI 250 257.85 7.85 1.03x Retail 300 306.97 6.97 1.02x Total 1000 2586.4 1586.4 2.59x Sectorwise Series Total 22 MONTHS ANNUAL 971.

75. Slide 75: Consolidated Financials

    Consolidated Financials 72

76. Slide 76: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Growth % Growth % Particulars FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Q4-o-Q4 Y-o-Y Income 2,493 2,796 2,497 3,067 2,557 3,408 2,685 3,835 43% 10,232 13,106 28% Expenses 2,049 2,032 1,675 2,305 1,847 2,482 1,752 2,672 52% 7,324 9,491

77. Slide 77: Environmental Social Governance

    Environmental Social Governance 74

78. Slide 78: Awards & Accolades

    Awards & Accolades • FTSE Russell - Included in FTSE4 Good Index series FY21 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 – STRONG 75 Note: For more

79. Slide 79: Risk Management

    Risk Management 76

80. Slide 80: 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

81. Slide 81: 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

82. Slide 82: 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

83. Slide 83: 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

84. Slide 84: Information Technology

    Information Technology 81

85. Slide 85: 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 • Rollout of new cloud-native design based direct to customer adopt clo

86. Slide 86: 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-Sr. Vice President & Compa

87. Slide 87: 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

88. Slide 88: Thank You

    & Chola a6 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-mail : customercare@chola.murugappa.com | Website : www.cholamandalam.com Cholamandalam Investment and Finance Company Limited

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