Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q3 FY22 Earnings Presentation

43 slides from Home First Finance Company India's earnings presentation, January 2022

  1. Slide 1: Tech in Mind Service at Heart

    Tech in Mind Service at Heart Smart Loans for Affordable Homes! Investor Presentation – Q3 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 | Q3FY22

    y-o-y q-o-q Executive Summary | Q3FY22 Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA %) ₹49,940 Mn ₹5,696 Mn 2.6%(1) In line with RBI circular dated 12 Nov 2021 +26.7% +8.2% +63.3% +10.6% +8.2% 1.7% prior to such classification Spread(2) Cost to Income Opex to Assets 5.6% 33.0

  4. Slide 4: HomeFirst – Who we are

    HomeFirst – W ho 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 91% of book comprise of housing loans with average ticket size of ₹1.0Mn Strong liquidity p

  5. Slide 5: Our Journey

    Our Journey Scalable operating model CARE Rating CARE / ICRA Rating ICRA Rating We got listed BBB- BBB+ A- A+ A+ Warburg Pincus Long term credit ₹49,940 Mn invested in rating outlook the company (2) improved to A+ Positive by ICRA Series C AUM (Dec’21) 60,000+ sanctions True North acquires AuM cross

  6. Slide 6: Share Holding as on Jan’22

    Share Holding as on 21 Jan’22 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 11.3% 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 Sucharita Mukherjee Independent Directors Country Director - Susan Dell CEO - Livspace CEO – Kaleidofin Pvt Ltd Dell Foundation Foundation Divya Sehgal Man

  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? 73% Salaried 27% 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 - 76 New branch locations - 54 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 57 76 92 13 187 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 |Q3 FY22 70.8% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 11.8% 4.7% 4.0% 5.0% 100% in-house conversion 0.2% 0.8% 1.1% 1.6% 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 E-NACH API Integration with third party Home First App for all stakeholders E- Sign databases 360 o view of customer for employees E- Vault Proprietary property price predictor E-Stamp paper Electronic payments Instant So

  15. Slide 15: Digital Adoption Dashboard

    Digital Adoption Avg time spent by user on the app App logins Unique Users making Payment via App YoY: 56.4% YoY: 108.9% 1m 59 sec 29,819 5,904 For Q3 FY22 28,251 24,643 24,818 5,035 19,064 3,756 3,975 2,826 %of unique user logins of active customers 51.2% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 DIGITAL

  16. Slide 16: ESG at HomeFirst

    ESG at HomeFirst Putting sustainability at core of operations

  17. Slide 17: ESG Framework

    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

  18. Slide 18: Digital Processes from start to finish reduces carbon footprint

    Digital Processes from start to finish reduces carbon footprint Green Operations Customer App Connector App RM Pro App Operational Eco-efficiency & Climate Resilience HomeFirst has a deeply ingrained Ideology of all processes being paperless across the product cycle. Implemented Electronic processes

  19. Slide 19: Progress on Social Development

    Progress on Social Development Responsibility towards community Responsibility towards employees Responsibility towards customers Project “Sashakt”, an initiative by HomeFirst to empower Certified as “Great Place To Work” by GPTW Customer Satisfaction the households to uplift these households and br

  20. Slide 20: Strong Governance Structure

    Strong Governance Structure Work Sustainably & Ethically Governance at core Separate Chairman & Managing Sustainable Finance Corporate Governance Director position We promote Financial Inclusion. HomeFirst in association with the “Ministry of • Core competencies of Independent Directors Housing and

  21. Slide 21: Strong Governance Practice

    Strong Governance Practice Top-tier Corporate Governance • High Independent Directors representation in all Board Committees • Highly experience Board & Management Team on Risk Management committee. • Company's risk management framework is driven by its Board and its subcommittees including the Audi

  22. Slide 22: Business Updates

    Business Updates Go

  23. Slide 23: Healthy Growth in Loan Book and Disbursements

    Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 4 Years Last 7 Quarters 5,696 5,152 4,518 All time high disbursement for the quarter, 3,488 3,046 y-o-y growth of 63.3% 2,432 15,728 16,183 10,966 7,455 528 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 FY18 FY19 FY20 FY21 As

  24. Slide 24: Consistent Portfolio Metrics | Dec’21

    Consistent Portfolio Metrics | Dec’21 1% 1% 7% 1% AUM by Product AUM by Occupation Housing Loan 26% Salaried Shop Loans Self Employed LAP Corporate Developer Finance Sharp focus on High ratio of 91% 73% housing loans salaried customers 73% 3% 8% AUM by Credit history AUM by Ticket Size 7% Upto 0.5mn

  25. Slide 25: Expansion in Spreads

    Portfolio Yield Expansion in Spreads COB Spread Net Interest Spread Movement Last 4 Years Last 7 Quarters 13.1% 13.1% 13.0% 12.8% 12.8% 12.8% 12.7% 12.6% 12.9% 13.0% 12.3% Sustained Cost of Borrowing 8.8% 8.8% 8.5% 8.3% 8.4% 8.0% 8.0% 7.4% 7.2% 7.1% 7.2% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY

  26. Slide 26: Healthy Leading Indicators: Bounce rate

    Bounce rate Healthy Leading Indicators Bounce rate :On the day of EMI presentation Bounce rates normalising COVID COVID WAVE -1 WAVE -2 36.4% 28.3% 20.1% 17.3% 18.3% 16.5% 15.7% 15.2% 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

  27. Slide 27: Healthy Leading Indicators: Collection Efficiency

    Collection Efficiency (1) Healthy Leading Indicators Unique Customers (2) Collection Efficiency Collection efficiency trending back to normal levels 97.8% 98.5% 97.6% 97.2% 98.5% 98.0% 97.9% 97.4% 99.1% 97.6% 96.1% 97.7% 95.5% 96.3% 96.3% 96.4% 96.0% 96.9% 96.3% 96.3% 96.9% 94.7% 94.3% 94.0% 93.3% 95.0% D

  28. Slide 28: Sound Credit Indicators

    Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS 5.8% 5.2% 8.9% 1.9% 4.7% 4.1% 4.1% 4.1% 1.7% 7.5% 7.6% Significant 6.2% 6.2% 6.5% 1.8% 1.6% 1.8% 2.6% improvement in 4.4% 1.7% 2.0% 3.1% 3.2% 1.4% 3.8% 1+ & 30+ DPD 3.5% 0.8% 1.0% 2.5% 0.6% 2.3% 2.3% 2.1% 0.8% 0.9% 0.9%

  29. Slide 29: 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 ICRA revises the long-term credit Pvt Sector Banks rating outlook from A+ ‘Stable’ to A+ ‘Positive’ 100% 10.00% 19% 20%

  30. Slide 30: ALM Position as of Dec’21

    ALM Position as of Dec’21 Inflow Outflow Cumulative Surplus 5,833 8,395 7,792 11,954 22,648 10,544 (₹Mn) Robust ALM 76,803 profile ensuring sufficient liquidity 67,989 66,259 buffers 47,622 45,341 Cumulative 35,668 Positive flows across all the time buckets 23,525 17,409 15,733 11,566 9,014 5,733 0-3months

  31. Slide 31: Assignment Volume

    Assignment Volume ₹2,756 Mn ₹3,574 Mn ₹3,003 Mn ₹3,596 Mn Consistent demand for assignment of the company’s portfolio 2,383 1,844 1,491 1,472 1,273 1,159 1,183 1,140 611 373 - - - - - Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 31 Investor

  32. Slide 32: Strong Liquidity Position

    Strong Liquidity Position Liquidity Buffer as on Dec’21 (in ₹Mn) Unencumbered Cash and Cash equivalent 4810 Un-availed Sanction from NHB - Un-availed Sanction from Banks 9240 Total- 14,050 Particulars (in ₹Mn) Q4 Q1 Q2 Q3 FY22 FY23 FY23 FY23 ₹15,731 million Opening Liquidity 14,050 14,275 14,887 15,2

  33. Slide 33: Financial Updates

    Financial Updates Go

  34. Slide 34: Financial Highlights

    Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) (1) Equity Raised - 1508 3281 3450 - 18 26 ( ₹Mn ) 1001 14627 15100 13805 796 Strong profit growth Robust NW to 10921 (2) despite maintaining 9334 support growth 457 449 459 high liquidity and 5227 160 159 3252 conservative COVID provisio

  35. Slide 35: ECL Provisions Summary

    ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Dec’21 Loans – Principal Outstanding 38,110.1 870.3 1,023.6 40,004.0 ECL Provision 132.0 100.1 232.0 8.9 473.1 Net Loans – Principal Outstanding 37,978.1 770.2 791.6 39,530.9 ECL Provision % 0.

  36. Slide 36: Annexures

    Annexures

  37. Slide 37: Quarterly and Annual Profit & Loss Statement

    Quarterly and Annual Profit & Loss Statement Particulars (in ₹Mn) Q3FY22 Q2FY22 Q3FY21 QoQ YoY FY21 FY20 YoY Interest Income on 1202.2 1142.5 1013.8 5.2% 18.6% 4,026.0 3,425.0 17.5% term loans Net gain on DA 175.8 170.7 - 439.4 371.2 Income other than interest 139.0 148.2 89.1 421.2 400.6 income on t

  38. Slide 38: RoE Tree

    RoE Tree Particulars Q3 FY22 Q2 FY22 Q3 FY21 FY21 FY20 Interest Income on term loans / Average total assets 10.4% 9.9% 10.5% 10.1% 11.5% Net Gain on DA / Average total Assets 1.5% 1.5% - 1.1% 1.2% Income other than interest income on term loans/ Average total assets 1.2% 1.3% 0.9% 1.1% 1.4% Total In

  39. Slide 39: Key Financial Ratios

    Key Financial Ratios Particulars Q3 FY22 Q2 FY22 Q3 FY21 FY21 FY20 Profit after tax on average total assets (ROA) 4.0% 3.9%(1) 1.7% 2.5% 2.7% Leverage (Average total assets / average Equity or average 3.1 3.2 3.7 3.5 4.1 Net worth) Profit after tax on average equity or average Net worth (ROE) 12.4%

  40. Slide 40: Balance Sheet

    Balance Sheet Particulars (in ₹Mn) Dec’21 FY21 Dec’20 ASSETS Cash & cash equivalents and Other bank 4,100.1 6,798.7 4,635.4 balance Loans 39,539.9 33,265.0 32,067.3 Investments 1,214.2 3,750.2 2,439.3 Other financial assets 1,123.6 1,011.7 711.8 Property, plant and Equipment* 192.7 164.0 160.2 Non-f

  41. Slide 41: Experienced and Diversified Board

    Experienced and Diversified Board Board of Directors Mr. Deepak Satwalekar Ms. Geeta Dutta Goel Mr. Anuj Srivastava Chairman/ Independent/ Non-Executive Director Independent/ Non-Executive Director Independent/ Non-Executive Director Previously, he was associated with HDFC Limited as MD and Ms. Geet

  42. Slide 42: Thank You

    Thank You For further information, please contact Company Investor Relations Advisors CIN: L65990MH2010PLC240703 Mr Ashish Chovatia Mr. Manish Kayal, Head - Investor Relations +91 9930044680 manish.kayal@homefirstindia.com ashish.chovatia@linkintime.co.in Investor Relations - HomeFirst investor.relat

  43. Slide 43: 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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