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

Cholamandalam Investment And Finance — Investor Presentation (December 2019)

71 slides from Cholamandalam Investment And Finance's investor presentation, December 2019

1. Slide 1: Corporate Presentation - December 2019

   CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED CORPORATE PRESENTATION - DECEMBER 2019

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. Risk performance 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 119 Years of $5.35 $10 Turnover cap (as on 31st Years Existence B B (FY19) Mar 2019 Listed 3 Sectors 28 Businesses 9 Companies 18 Geographical 90+ Manufacturing 50,000+ 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.) 19,230 14,141 33,169 Turnover (Cr.) 16,442 8,165 11,654 PAT(Cr.) 799 487 1,446 Market Cap(Cr.) 15,573 3,567 6,065 9,060 23,897 NA Turnover (Cr.) 13,159 3,283 2,656 5,464 7,109 4,428 PAT(Cr.) 721 79 24

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 13.5 lakh + customers 26,840 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 10.5 lakh plus customers till date 200 plus employees in year 2000 to 26,800 employees today R

9. Slide 9: Our journey so far

   Our journey so far Consistently profit making and dividend paying1 company since 1979 with a strong track record and dividends to shareholders FY 1979-90 FY 2000-05 FY 2011 FY 2013 FY 2015 FY 2017 FY 2019 • Commenced • Started Chola • Obtained • Total AUM • Infused capital • Total AUM • Total AUM eq

10. Slide 10: Shareholding

    Shareholding Shareholding Pattern Top 10 Institutional Holders Corporate Bodies, 4% o HDFC Mutual Fund Mutual o Oppenheimer Funds, 19% o SBI Mutual Fund o Birla Sun Life Mutual Fund o L&T Mutual Fund o Capital Group - Capital World Investors Public, 7% o Matthews International Promoters, o Axis Mutu

11. Slide 11: Business Profile and AUM as on 31st Dec 2019

    Business Profile and AUM as on 31st Dec 2019 Business AUM Rs. 60,778Cr Vehicle Finance Home Equity Others Rs. 44,589Cr Rs. 13,000Cr Rs. 3,190Cr 74% 21% 5% Tractor, 8% SME, 7% CE, 5% Others 8% Older TW, 4% Vehicles, Commercial 7% 13% HCV, 14% Refinance, 13% LCV, 21% SORP* 85% 3Whlr and Home Loans, SC

12. Slide 12: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (3) Punjab (24) Himachal Pradesh (15) 1073 907 995 1029 Chandigarh (2) 891 Uttarakhand (16) Harayana (32) Delhi (5) Assam (24) Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Rajasthan (80) UP (71) Meghalaya (3) Bihar (42) Mizoram (1) Gujarat Madhya Pradesh Tripura (4

13. Slide 13: Financial Performance

    Financial Performance _ iil cll Fi lata fi i nfs" Kt ws, “ye / va ‘ Pee teen BM 01 i 7

14. Slide 14: Financial Snapshot - 10 Years

    Financial Snapshot —10 Years FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS (5 years) years) Disbursem ents 3,866 5,731 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 21% 24% 26% Assets under

15. Slide 15: Chola: Financial Summary (I)

    Chola: Financial Summary (I) Disbursements (₹Cr) Disbursements (%) 23,429 21,558 1,671 5% 6% 6% 7% 5% 5% 1,155 8% 7% 3,073 13% 13% 13% 14% 12% 13% 13% 12% 2,803 -2% 8,572 7,644 7,475 18,685 81% 81% 81% 79% 82% 80% 82% 80% 7,381 17,600 7,014 531 6,899 413 618 361 1,101 380 521 939 910 1,064 954 908 6

16. Slide 16: Chola: Financial Summary (II)

    Chola: Financial Summary (II) Business - Assets under Management (₹Cr) Business - Assets under Management (%) 27% 20% 60,778 24% 59,292 57,494 2,779 3,190 2,398 12,612 50,753 13,000 3% 4% 3% 5% 4% 12,119 47,761 5% 2,060 45,361 1,512 1,445 11,185 23% 21% 22% 21% 22% 21% 10,742 10,374 42,977 43,901 44

17. Slide 17: Chola: Financial Summary (III)

    Chola: Financial Summary (III) Profit after tax (₹Cr) Networth (₹Cr) 18% *7,053 1010 20% *6,739 *6,486 156 894 156 *5,984 156 *5,680 *5,410 156 156 156 28% ​ ​ ​ 1% 389 314 305 307 304 285 Q1FY19Q1FY20 Q2FY19Q2FY20 Q3FY19Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Dec18 Dec19 Reserves a

18. Slide 18: Chola: Financial Summary (IV)

    Chola: Financial Summary (IV) Net Income Margin (%) Expenses Ratio (%) 7.3% 7.0% 7.0% 7.0% 6.8% 6.7% 6.8% 6.5% 2.7% 2.6% 2.6% 2.5% 2.4% 2.5% 2.4% 2.5% Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 Dec19 18

19. Slide 19: Chola: Financial Summary (V)

    Chola: Financial Summary (V) Loan Losses & Provisions (%) ROTA PBT (%) 4.0% 3.9% 3.8% 3.6% 3.4% 3.4% 3.4% 3.3% 0.9% 0.8% 0.8% 0.7% 0.8% 0.7% 0.6% 0.6% Q1FY19Q1FY20 Q2FY19Q2FY20 Q3FY19Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 Dec19 19

20. Slide 20: Chola: Financial Summary (VI)

    Chola: Financial Summary (VI) Return on equity (%) Earnings per share (₹) 21.8% 21.8% 20.7% 20.5% 17.2 20.0% 16.2 18.5% 15.5 15.6 15.4 14.6 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 20

21. Slide 21: Chola: Financial Summary (VII)

    Chola: Financial Summary (VII) P/E Ratio P/BV Ratio 4.4 3.6 20.7 3.4 3.4 19.7 3.2 3.3 17.7 17.8 16.4 15.1 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 21

22. Slide 22: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD Dec18 YTD Dec19 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 7,014 8,572 6,899 7,381 7,644 7,475 -2% 21,558 23,429 9% Closing Assets (Managed) 46,709 62,827 52,486 64,409 52,591 65,992 25%

23. Slide 23: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Dec-18 Mar-19 Dec-19 ASSETS Financial Assets 52,984 56,637 62,061 Cash and Bank balance 3,649 3,675 5,430 Derivative financial instruments 116 89 70 Receivables 27 43 53 Loans 48,982 52,622 56,038 Investments 73 73 73 Other Financial Assets 138 135 397

24. Slide 24: Provision analysis: IND AS

    Provision analysis: IND AS ₹ Cr Particulars Mar-18 Sep-18 Dec-18 Mar-19 Sep-19 Dec-19 Gross Asset - Stage 3 1,485 1,623 1,648 1,439 1,803 2,024 Stage 3 Assets to Total Gross Assets 3.4% 3.4% 3.3% 2.7% 3.2% 3.5% ECL provision - Stage 3 507 566 576 546 621 667 Coverage Ratio (%) - Stage 3 34.2% 34.8%

25. Slide 25: Business Overview

    Business Overview 25

26. Slide 26: Vehicle Finance

    Vehicle Finance

27. Slide 27: Vehicle Finance: YTD Dec19 Performance

    Vehicle Finance: YTD Dec19 Performance • Disbursements has grown 7% in YTD Dec19 as compared to YTD Disbursements Dec18. Assets under management ▪ Assets have grown by 19% as compared to YTD Dec18 Loss and ▪ Loan losses is at 1.1% as compared to 0.95% of YTD Dec18 provisions Profit before tax • PBT

28. Slide 28: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ 11% Chola @ -2% CAGR @ 4% CAGR @ 5% 1,98,754 1,91,456 3,29,684 3,42,033 2,92,371 1,54,327 1,57,511 2,66,431 2,36,891 1,24,543 YTD Dec'16 YTD Dec'17 YTD Dec'18 YTD Dec'19 YTD Dec'23 (E) YTD Dec

29. Slide 29: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ -52% Chola @16% CAGR @ 5% 2,12,713 (43%) CAGR @ 4% 25,15,366 25,73,438 1,73,592 24,05,898 1,58,193 22,22,479 21,17,174 1,42,118 1,21,483 YTD Dec'16 YTD Dec'17 YTD Dec'18 YTD Dec'19 YTD D

30. Slide 30: 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

31. Slide 31: 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

32. Slide 32: Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec19

    Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec19 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala Kerala 6% 5% 5% 5% 5% 5% Pondicherry Pondicherry 10% 11% 4% Telangana 4% Tela

33. Slide 33: Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec19

    Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec19 Well diversified across geography & product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise CE; 4% HCV; 7% HCV; 14% CE; 5% Car and MUV; 17% Older Older Vehicles; Car and MUV; Vehicles; 13% 17% 17% Tractor 8% LCV; 19%

34. Slide 34: Vehicle Finance - Disbursement Mix – YTD Dec19

    Vehicle Finance - Disbursement Mix – YTD Dec19 Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise 7,360 6,940 6% 8% 8% 1,030 14% 14% 4% 555 5% 4% 6,124 347 5,949 5% 5% 368 5,796 Low Yield 16% 17% 857 384 17% 1,180 469 15% 15% 1,104 258 306 247 1,010 953 19% 19% 919 21% Medium Yield 1,

35. Slide 35: Vehicle Finance - Portfolio Mix – YTD Dec19

    Vehicle Finance - Portfolio Mix – YTD Dec19 Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 43,901 44,589 42,977 16% 15% 14% 18% 17% 40,588 6,043 5% 37,476 6,725 5% 5% 7,039 5% 5% 2,183 Low Yield 7,074 2,131 17% 2,109 16% 16% 6,755 16% 16% 1,983 7,582 7,238 1,724 6,995 6,498 6,006 21% 21

36. Slide 36: Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (I)

    Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (I) Disbursements (₹Cr) Assets under management (₹Cr) 830 19% 1,479 28% 24% 42,977 43,071 43,109 18,685 37,508 17,600 35,507 33,542 21% -5% 3% 6,940 6,277 5,949 5,715 5,609 5,796 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2F

37. Slide 37: Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (II)

    Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (II) Income (₹Cr) Profit before tax (₹Cr) 3% 932 906 24% 4,882 3,943 21% -1% -4% 16% 27% 24% 319 322 318 308 1,684 295 1,561 1,637 275 1,324 1,395 1,225 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Y

38. Slide 38: Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (III)

    Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (III) Net Income Margin (%) Expense Ratio (%) 7.4% 7.3% 7.2% 7.2% 3.1% 3.1% 6.9% 6.9% 7.0% 7.0% 3.0% 2.9% 2.9% 2.9% 2.9% 2.9% Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 De

39. Slide 39: Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (IV)

    Vehicle Finance: Financial summary Q3FY20 & YTD Dec19 (IV) Loan Losses & Provisions (%) ROTA PBT (%) 3.7% 1.2% 3.5% 3.4% 3.4% 3.1% 1.0% 2.9% 2.9% 1.0% 0.9% 0.9% 2.7% 0.9% 0.9% 0.8% Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 D

40. Slide 40: Profit and Loss Statement: Vehicle Finance (Managed)

    Profit and Loss Statement: Vehicle Finance (Managed) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD Dec18 YTD Dec19 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 5,715 6,940 5,609 5,796 6,277 5,949 -5% 17,600 18,685 6% Closing Assets (Managed) 33,542 42,977 35,507 43,901 37,508

41. Slide 41: Profit and Loss Statement: Vehicle Finance (On Book)

    Profit and Loss Statement: Vehicle Finance (On Book) (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD Dec18 YTD Dec19 (YTD) Q3-o-Q3 Y-o-Y Disbursements 5,715 6,940 5,609 5,796 6,277 5,949 -5% 17,600 18,685 6% Closing Assets (Balance Sheet) 33,542 42,97

42. Slide 42: Home Equity

    Home Equity

43. Slide 43: Home Equity— YTD Dec19 Performance

    Home Equity— YTD Dec19 Performance • Disbursements has grown 10% in YTD Dec19 as compared to YTD Disbursements Dec18 Asset under • The business has grown the Assets by 16% in YTD Dec19 management Loss and provisions • Loan losses is at -0.07% from -0.03% as compared to YTD Dec18 Profit before tax •

44. Slide 44: Home Equity: Industry outlook

    Home Equity: Industry outlook • The current liquidity squeeze is expected to impact credit flow to the MSME segment, in view of the expected pressure because of the high fuel prices, elongated working capital cycles and increase in interest rates, which would have a cascading effect on the asset qua

45. Slide 45: Home Equity—Financial Summary Q3FY20 & YTD Dec19 (I)

    Home Equity—Financial Summary Q3FY20 & YTD Dec19 (I) Disbursements (₹Cr) Assets under Management (₹Cr) 17% 16% 13,000 17% 12,612 10% 12,119 11,185 2,560 10,742 2,282 3,073 10,374 1,991 965 1,468 2,803 1,043 17% 17% 10,129 9,777 10,331 10,439 -5% 9,331 9,717 1,101 1,064 939 910 954 908 Q1FY19 Q1FY20

46. Slide 46: Home Equity—Financial Summary Q3FY20 & YTD Dec19 (II)

    Home Equity—Financial Summary Q3FY20 & YTD Dec19 (II) Income (₹Cr) Profit before tax (₹Cr) 17% 21% 259 1,102 221 912 9% 19% 4% 21% 22% 48% 380 84 84 88 87 354 368 80 292 301 319 57 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 D

47. Slide 47: Home Equity—Financial Summary Q3FY20 & YTD Dec19 (III)

    Home Equity—Financial Summary Q3FY20 & YTD Dec19 (III) Net Income Margin (%) Expenses Ratio (%) 3.9% 3.9% 1.2% 1.2% 3.8% 3.9% 3.8% 3.7% 3.7% 1.1% 3.6% 1.0% 1.0% 1.0% 1.0% 0.9% Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Dec18 Dec19

48. Slide 48: Home Equity—Financial Summary Q3FY20 & YTD Dec19 (IV)

    Home Equity—Financial Summary Q3FY20 & YTD Dec19 (IV) Loan Losses & Provisions (%) ROTA PBT (%) 3.2% 2.8% 2.9% 2.8% 2.8% 2.8% 2.7% 0.5% 0.19% 2.2% 0.1% -0.05% -0.03%-0.04% -0.13% -0.44% Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec19 Q1FY19 Q1FY20 Q1FY20 Q2FY20 Q3FY19 Q3FY20 YTD YTD De

49. Slide 49: Profit and Loss Statement: Home Equity (Managed)

    Profit and Loss Statement: Home Equity (Managed) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD Dec18 YTD Dec19 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 939 1,101 910 1,064 954 908 -5% 2,803 3,073 10% Closing Assets (Managed) 10,374 12,119 10,742 12,612 11,186 13,000 16% 1

50. Slide 50: Profit and Loss Statement: Home Equity (On Book)

    Profit and Loss Statement: Home Equity (On Book) ₹ Cr (As per IND AS) Growth % Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD Dec18 YTD Dec19 (YTD) Q3-o-Q3 Y-o-Y Disbursements 939 1,101 910 1,064 954 908 -5% 2,803 3,073 10% Closing Assets (Balance Sheet) 9,331 10,129 9,773 10,331

51. Slide 51: Funding Profile

    Inding a are Profile rr eevee) Waa iy VeRO LL i 1 PPL

52. Slide 52: CAR, Credit Rating

    CAR, Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 18.64 18.36 17.36 17.16 17.09 17.04 5.03 5.12 4.92 4.30 4.22 4.04 13.61 13.24 12.44 12.86 12.87 13.00 2016–2017 2017–2018 2018–2019 Q1FY20 Q2FY20 Q3FY20 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Cred

53. Slide 53: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 47,234 * 50,567 * 55,122 * 55,903 * 54,941 12% 11% 10% 9% 9% 35% 43% 44% 49% 57% 4% 10% 1% 4% 4% 4% 4% 6% 7% 10% 4% 4% 4% 10% 1% 5% 7% 25% 3% 3% 21% 17% 14% 12% 8% 8% 7% 7% 7% Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Tier II Ca

54. Slide 54: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 47,234 * 50,567 * 55,122 * 55,903 * 54,941 12% 11% 10% 9% 9% 3% 2% 2% 3% 3% 3% 5% 3% 4% 3% 5% 4% 4% 1% 50% 57% 58% 61% 65% 1% 7% 1% 1% 1% 6% 5% 5% 1% 19% 5% 13% 15% 13% 9% 3% 3% 2% 2% 3% Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 T

55. Slide 55: ALM Statement as of 31st Dec 2019 (As per IGAAP)

    ALM Statement as of 31st Dec 2019 (As per IGAAP) (₹Cr) ALM snapshot as on 31st Dec 2019 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 2,243.24 205.00 2,410.00 - - - - - 4,858.24 Advances 1,359.52 1,155.06 1,101.66 5,644.91 9,179.19 23,04

56. Slide 56: Subsidiaries

    Subsidiaries 56

57. Slide 57: Cholamandalam Home Finance Ltd (As per IND AS)

    CHOLAMANDALAM HOME FINANCE LTD (As per IND AS) Income (₹Cr) Profit after tax (₹Cr) 4% 0.4 (0.3) 0.2 0.3 (4.0) (4.5) 91% 107% (5.2) 97% (13.7) 98% 28.69 29.91 13% -7% 7% 9.48 10.75 8.90 9.56 10.32 9.60 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD

58. Slide 58: Cholamandalam Securities Ltd (As per IND AS)

    CHOLAMANDALAM SECURITIES LTD (As per IND AS) Income (₹Cr) Profit after tax (₹Cr) -0.2% 17.0 16.9 -22% 1.6 1.5 -6% -12% 24% -71% 1.9 6.5 5.9 5.5 5.7 5.7 68% 4.6 0.5 0.6 0.5 0.3 (0.0) Q1FY19Q1FY20 Q2FY19Q2FY20 Q3FY19Q3FY20 YTD Dec18 YTD Dec19 Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 YTD YTD Dec18 Dec

59. Slide 59: Risk Management

    Risk Management 59

60. Slide 60: Risk Governance Structure

    Risk Governance Structure ▪ Oversee the entire risk Board of Directors management process ▪ Formed in Oct 2007,operational Risk Management from 2008 Committee ▪ Meet four times in a year ▪ Reviews framework & process, periodic monitoring of exposures ▪ Review of other initiatives with a Chief Risk O

61. Slide 61: ERM as value centre

    ERM as value centre • ERM at Chola works as a value centre • Risk management team engages in defining framework, overseeing enterprise wide risks and building a portfolio for risk appetite based decision making. • At Chola risk management is an integral part of the existing business process and mana

62. Slide 62: ERM Framework

    ERM Framework Measurement & Monitoring using KRI 04 01 Review mechanism to monitor & control risks Understanding & Evaluate Probability & Identification of various Impact of each event risks 03 02 HIGHLIGHTS OF THE RISK MANAGEMENT FRAMEWORK Chola Composite Risk Index, computed using multiple KRIs, h

63. Slide 63: ERM Framework

    ERM Framework Identification, Prioritization and Monitoring of Risk and Process Indicators Identification and Measurement of Risk Assessment of Risk parameters. to Track Operational Risk Level Events & parameters Stage 1 Stage 2 Stage 3 QUALITATIVE RISK MONITORING QUANTITATIVE ASSESSMENT VALIDATION

64. Slide 64: Risk Monitoring: Risk Index Scoring Methodology

    Risk Monitoring : Risk Index Scoring Methodology Spread of Weightages Scoring method p q r s t a n o ❖ Identified Top 20 risks are a combination of m 2.25 2 2.25 2.5 2.25 1.5 21 k l4 1 credit, market and operational risks. 3 2 j Top 6 six risks (a to f) ❖ 25% weight is given for operational risks –

65. Slide 65: ECL Methodology

    § Chola aXe Enier a better life ECL Methodology

66. Slide 66: Measurement Framework

    Measurement Framework Asset ECL classification PD12 m  Stage 1 LGD  EAD Staging Lifetime ECL Retail Stage 2 Framework Basis Account Conduct it is classified into different stages PD : Probability of default PD(100%)  LGD : Loss given default Stage 3 LGD  EAD : Exposure at time of default EAD Dis

67. Slide 67: Measurement Framework

    Measurement Framework Asset ECL Description classification PD12 m  • Assets with low risk (0-30 DPD) on reporting date Stage 1 LGD  • Loss estimate based on a 1 year forward estimate EAD Lifetime • Assets with Significant Increase in Credit Risk (SICR) since initial recognition Stage 2 • Assets wi

68. Slide 68: Retail Pooling

    Retail Pooling Portfolios are segmented based on the below categories. PD Chola term structure and LGDs are computed for each segment separately. Home Vehicle Finance Home Equity Others Loan MLCV/2W/3W HCV New LCV New HE Delhi HE Tamil Nadu New HE Punjab / OLDER CAR/MUV New USED Haryana / HE Gujarat

69. Slide 69: 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

70. Slide 70: 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

71. Slide 71: Thank You

    } Chola okt Enter a better life murugappa KE G | as 4 = = OING HS . PHYGITAL = —— a e AUGMENTING PHYSICAL PRESENCE WITH DIGITAL LEADERSHIP m THANK YOU

Cholamandalam Investment and Finance Company — Investor Presentation (December 2019) on 6ix