Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q1 FY24 Earnings Presentation

47 slides from Home First Finance Company India's earnings presentation, July 2023

  1. Slide 1: Home First Finance Company India Limited

    Home First Finance Company India Limited

  2. Slide 2: Safe Harbour

    Safe Harbour Safe Harbour 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

  3. Slide 3: Q1FY24 Highlights

    Q1FY24 Highlights Executive Summary | Q1FY24 y-o-y q-o-q Assets Under Management (AUM) Disbursement Gross Stage 3 / POS (GNPA %) ₹ 77,759 Mn ₹8,952 Mn 1.6(1) In line with RBI circular dated 12 Nov 2021 1.0% prior to such classification +33.3% +8.0% +35.4% +3.0% -50 bps 0 bps Spread(2) Cost to Income

  4. Slide 4: MD & CEO Commentary on Q1 FY24 Performance

    MD Commentary MD & CEO Commentary on Q1 FY24 Performance “We stay focused on providing loans for affordable housing, led by distribution and use of technology, backed by diversified funding and strong risk management. We continue to expand our distribution in large affordable housing markets in Stat

  5. Slide 5: HomeFirst – Who We Are?

    HomeFirst – Who We Are? Corporate Information HomeFirst – Who are We? Technology driven affordable housing ESG Risk Rating by MorningStar Sustainalytics finance company with pan India presence ‘Amongst Leading Ratings in Home loans to first time home buyers with BFSI Sector ’ predominant focus on salar

  6. Slide 6: Our Journey

    Corporate Information Our Journey India ICRA / CARE CARE Rating CARE / ICRA Rating Ratings Rating BBB- BBB+ A- A+ AA- AA- 100+ Physical AUM crosses Branches ₹75 bn. Scalable operating model 1,00,000+ ₹ 77,759 Mn We got listed Customers 71,980 77,759 Assets Under Management W arburg Pincus invested i

  7. Slide 7: Shareholding as on Jul'23

    Corporate Information Shareholding as on 21 Jul’23 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 18.2 AETHER (MAURITIUS) LIMITED (GIC)^ 12.0 KEY INVESTORS % Holding TRUE NORTH FUND V LLP ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 26.5 16.0% 18.2% MFS & AIFS % Holding* INVESCO INDIA MF

  8. Slide 8: Distinguished Board of Directors

    Leadership Distinguished Board of Directors 08 Home First Finance Company India Ltd. Investor Presentation – Q1 FY24

  9. Slide 9: Experienced Management Team

    Leadership Experienced Management Team Ajay Khetan Vilasini Subramaniam Chief Business Officer Head – Strategic Alliances Gaurav Mohta Nutan Gaba Patwari Ashishkumar Darji Chief Marketing Officer Chief Risk Officer Chief Financial Officer Abhijeet Jamkhindikar Ramakrishna Vyamajala Arunchandra Jupalli Busin

  10. Slide 10: Meet Our Customers

    Corporate Information Meet Our Customers Formal Salaried Salaried Informal Salaried Self Employed Self Employed Customer 1 69% Customer 2 31% Customer 3 Age:44 / Location: KR Puram Age: 32 / Location: Sayan Age: 36 / Location: Avadi (suburbs of Bangalore) (suburbs of Surat) (suburbs of Chennai) Who

  11. Slide 11: Our Unique Value Proposition to Our Customers

    Corporate Information 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 NPS Home loan requirement primarily Inability to meet documentation individuals in the ₹0.5 -1.5 mn range (1) requirements of t

  12. Slide 12: Distribution Strategy

    Corporate Information Distribution Strategy 0 -4 4-7 7 - 15 Contribution to India's GDP FY’22 ( %) Pan India Distribution driven by strategic market selection & contiguous expansion Physical branches - 113 282 Proposed branches - 62 Touchpoints Digital branches - 107 113 123 13 282 Branches District

  13. Slide 13: Omni Channel Lead Generation Strategy

    Corporate Information Omni Channel Lead Generation Strategy Diversified lead generation channels | Q1 FY24 75.6% Diversified channels for generating leads such as connectors, builder ecosystem, digital, etc. 100% in-house conversion 8.4% by HomeFirst RMs. 3.2% 2.5% 4.6% 3.8% 0.3% 0.9% 0.7% Constructio

  14. Slide 14: Data Science Backed Centralised Underwriting

    Corporate Information Data Science Backed Centralised Underwriting Risk Management Design Tech-Led Centralised Salaried customers 100+ data points & digitally captured Consistency in underwriting Loans Approved within 48hrs data for all customers Build detailed understanding of customer Integrated C

  15. Slide 15: Scalable Operating Model built on Holistic Technology Usage

    Corporate Information Scalable Operating Model built on Holistic Technology Usage Recent Tech Interventions • E-NACH API Integration with third Data on Cloud • E- Sign Home First App for all Digital marketing on major party databases stakeholders online media • E- Vault Integrated CRM and loan o Pro

  16. Slide 16: Digital Adoption

    Corporate Information Digital Adoption Customer Rating on Google Unique user logins as % of active Playstore % Customers registered on App customers 84% 87% 91% 93% 93% 4.1 57% 55% 57% 55% Average payment per user on 54% As of 24 Jul’23 app ₹36,244 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3

  17. Slide 17: ESG at HomeFirst

    ESG at HomeFirst Putting sustainability at core of operations

  18. Slide 18: Commitment to ESG

    ESG Commitment to ESG ESG Framework An ESG Execution Team with The Company understands the Comprehensive management team participation has growing importance of ESG and Policy & Robust been created to ensure has adopted a Board approved Governance Implementation implementation of the ESG Policy ESG

  19. Slide 19: Digital Processes from start to finish to reduce Carbon Footprint

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

  20. Slide 20: Progress on Social Development

    ESG Progress on Social Development Responsibility towards community Responsibility towards employees Project “Sashakt”, an initiative by HomeFirst to bring an all- Certified as “Great Place To Work” by GPTW around improvement in the social, health and economic status of migrant factory workers livin

  21. Slide 21: Progress on Social Development

    ESG Progress on Social Development Responsibility towards customers ESG Initiatives Customer Satisfaction Sustainable Finance • Customer focus: Playing a key role in Financial inclusion • Funds raised from IFC to finance affordable housing and green housing. HomeFirst raised Rs 280 crores from by fa

  22. Slide 22: Strong Governance Structure

    ESG Strong Governance Structure Separate Chairman & Managing Work Sustainably & Ethically Governance at core Director position Sustainable Finance Corporate Governance We promote Financial Inclusion. • Core competencies of Independent Directors directly relevant to company’s operations. Experienced

  23. Slide 23: Strong Governance Practice

    ESG Strong Governance Practice Corporate Governance Structure 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 i

  24. Slide 24: Business Updates

    Business Updates

  25. Slide 25: Healthy Growth in Loan Book and Disbursements

    Business Updates Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 5 Years Last 5 Quarters 8,691 8,952 7,804 6,612 7,022 All time high disbursement in the quarter, 30,129 q-o-q growth of 3.0% 20,305 15,728 16,183 10,966 FY19 FY20 FY21 FY22 FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY2

  26. Slide 26: Consistent Portfolio Matrix | Jun'23

    Business Updates Consistent Portfolio Matrix | Jun’23 12% 31% 1% AUM by Product AUM by Occupation Salaried Housing Loan Shop Loans Self Employed LAP Sharp focus on High ratio of 87% housing loans 69% salaried customers 81% 2% 11% 19% AUM by Credit history 10% AUM by Ticket Size Upto 0.5mn AVG: 742 H

  27. Slide 27: Competitive Spreads

    Business Updates Competitive Spreads Portfolio Yield COB Net Interest Spread Movement Spread Repricing schedule 25bps w.e.f 1st Jul’22 Last 5 Years Last 5 Quarters 50bps w.e.f 1st Dec’22 50bps w.e.f 1st Apr’23 13.4% 13.7% 12.9% 13.0% 13.1% 13.0% 13.1% 12.8% 12.7% 12.3% Competitive Cost of Borrowing

  28. Slide 28: Healthy Leading Indicators

    Business Updates Healthy Leading Indicators Bounce rate : On the day of EMI presentation Bounce rate Bounce rates are range-bound COVID COVID WAVE -1 WAVE -2 36.4% 28.3% 20.1% 17.3% 18.3% 16.5% 15.7% 15.6% 14.5% 14.0% 14.9% 15.0% 15.1% 13.6% 10.0% 10.9% 10.5% 9.5% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21

  29. Slide 29: Healthy Leading Indicators

    Business Updates Healthy Leading Indicators Collection Efficiency Collection Efficiency (1) Collection efficiency at normal levels Unique Customers (2) 98.7% 98.5% 99.3% 98.0% 98.8% 98.5% 98.8% 98.4% 98.5% 98.0% 98.8% 98.9% 97.8% 98.2% 97.2% 98.4% 97.3% 97.2% 96.9% 97.3% 97.4% 97.4% 97.3% 97.8% 97.3% 97.7

  30. Slide 30: Sound Credit Indicators

    Business Updates Sound Credit Indicators DPD 1+ / POS DPD 30+ / POS % Stage 3 / POS Stage 2 / POS 6.2% Asset quality at 5.3% 5.0% 4.1% 4.4% 4.7% 4.4% 3.7% 3.5% 4.0% 4.0% 4.3% 3.3% healthy levels 1.8% 3.0% 2.9% 3.2% 2.7% 2.7% 2.0% 2.3% 2.1% 1.7% 1.9% 1.8% 1.6% 1.6% 1.6% 0.8% 1.0% 2.3% 0.9% 1.4% 1.1%

  31. Slide 31: Diversified funding profile at competitive Cost of Borrowing

    Business Updates Diversified funding profile at competitive Cost of Borrowing DA & Co-lending Borrowings Mix and Cost of Borrowing trend NCD NHB Refinance Total Borrowings 39,322 40,039 40,150 44,919 48,387 52,281 58,009 59,556 68,215 NBFC (₹Mn) (1) Public Sector Banks Jun'21 Sep'21 Dec'21 Mar'22 Jun

  32. Slide 32: ALM Position as of Jun'23 - Cumulative

    Business Updates ALM Position as of Jun’23 - Cumulative Inflow Outflow Surplus 6,322 9,283 11,457 15,622 27,034 23,562 (₹Mn) Robust ALM 1,25,832 profile ensuring sufficient liquidity 1,02,046 1,02,270 buffers 75,012 71,086 Cumulative 55,463 Positive flows across all the time buckets 34,692 22,584 23,236 14

  33. Slide 33: Assignment and Co-lending Transactions

    Business Updates Assignment and Co-lending Transactions Direct Assignment Transactions Co-Lending Transaction ₹3,003 Mn ₹4,646 Mn ₹3,784 Mn ₹1,143 Mn Consistent demand for assignment 1,844 of the company’s portfolio 1,273 1,159 1,183 1,140 1,154 1,143 1,050 879 857 894 Generated 348 350 77 166 busin

  34. Slide 34: Strong Liquidity Position

    Business Updates Strong Liquidity Position Liquidity Buffer as on Jun’23 (in ₹Mn) Unencumbered Cash and Cash equivalent 8,622 - Un-availed Sanction from NHB Un-availed Sanction from Banks 12,295 Total 20,917 ₹ 12,472 million Liquidity raised during Q1FY24 Particulars (in ₹Mn) Q2FY24 Q3FY24 Q4FY24 Q1F

  35. Slide 35: Financial Updates

    Financial Updates

  36. Slide 36: Financial Highlights

    Financial Updates Financial Highlights Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) Equity Raised 1508 3281 3450 32 53 8 18 29 53 15 ( ₹Mn ) 2,283 (1) 18,173 18,680 1,741 17,483 18,173 Robust NW to 16,279 16,856 Strong profit growth 15,737 13,805 support growth 1,001 796 691 9,334 543 587 640 457 512 5,

  37. Slide 37: ECL Provisions Summary

    Financial Updates ECL Provisions Summary Loan Particulars (in ₹Mn) Stage 1 Stage 2 Stage 3 Commitment Total For period ended Jun’23 Loans – Principal Outstanding 63,875.0 841.7 1077.3 65,794.0 ECL Provision 179.3 86.1 334.3 15.8 615.5 Net Loans – Principal Outstanding 63,695.7 755.6 743.0 65,178.5 E

  38. Slide 38: Annexures

    Annexures

  39. Slide 39: Quarterly and Annual Profit and Loss Statement

    Financial Updates Quarterly and Annual Profit and Loss Statement Particulars (in ₹Mn) Q1FY24 Q4FY23 Q1FY23 QoQ YoY FY23 FY22 YoY Interest Income on term loans 2,166.2 1,937.2 1,449.0 11.8% 49.4% 6,825.0 4,770.5 43.1% Net gain on DA 125.7 112.0 99.0 380.4 678.4 Income other than interest income on te

  40. Slide 40: RoE Tree

    Financial Updates RoE Tree Particulars Q1FY24 Q4FY23 Q1FY23 FY23 FY22 Interest Income on term loans / Average total assets 12.1% 11.7% 10.9% 11.5% 9.9% Net Gain on DA / Average total Assets 0.7% 0.7% 0.8% 0.6% 1.4% Income other than interest income on term loans/ Average total assets 1.7% 1.6% 1.1%

  41. Slide 41: Key Financial Ratios

    Financial Updates Key Financial Ratios Particulars Q1FY24 Q4FY23 Q1FY23 FY23 FY22 Profit after tax on average total assets (ROA) 3.9% 3.9% 3.9% 3.9% 3.6%(1) Leverage (Average total assets / average Equity 3.9 3.7 3.3 3.5 3.3 or average Net worth) Profit after tax on average equity or average Net 15.

  42. Slide 42: Balance Sheet

    Financial Updates Balance Sheet Particulars (in ₹Mn) Jun’23 FY23 FY22 ASSETS Cash & cash equivalents and Other bank 5,437.2 2,984.1 6,678.5 balance Loans 65,194.3 59,957.0 43,048.7 Investments 3,656.8 2,808.0 0.0 Other financial assets 1,325.2 1,241.0 1,164.8 Property, plant and Equipment* 257.0 253

  43. Slide 43: Consistent Financial Performance over the years

    Financial Updates Consistent Financial Performance over the years Particulars (in ₹Mn) FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR % Operational Information Number of Branches 36 42 60 68 72 80 111 Loan disbursals 4,244 7,455 15,728 16,183 10,966 20,305 30,129 AUM 8,473 13,559 24,436 36,184 41,411 53,80

  44. Slide 44: Experienced and Diverse Board

    Leadership Experienced and Diverse Board Mr. Deepak Satwalekar Ms. Geeta Dutta Goel Mr. Anuj Srivastava Chairman/ Independent/ Non-Executive Director Independent/ Non-Executive Director Independent/ Non-Executive Director Mr. Deepak Satwalekar was associated with HDFC Limited as a Ms. Geeta Dutta Go

  45. Slide 45: Thank You

    Thank You For further information, please contact Company CIN: L65990MH2010PLC240703 Mr. Manish Kayal, Head - Investor Relations manish.kayal@homefirstindia.com Investor Relations - HomeFirst investor.relations@homefirstindia.com

  46. Slide 46: Glossary

    Glossary Glossary Terms Explanation Assets Under Management/Gross Loan Assets represents the aggregate of current principal AUM - Assets Under Management outstanding and overdue principal outstanding, if any, for all loan assets under management which includes loan assets held by the Company as of t

  47. Slide 47: ~—=~{ You can't go faster

    ~—=~{ You can't go faster f«\\ by blowing the horn there's a traffic jam\J Af Y e N if) whe = e A IY a ah : — (| inna YN ar te VF tans ence a AS A f yy 5 /| We oe

Home First Finance Company India — Q1 FY24 Earnings Presentation on 6ix