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

Cholamandalam Investment And Finance — Investor Presentation (March 2022)

94 slides from Cholamandalam Investment And Finance's investor presentation, March 2022

1. Slide 1: Corporate Presentation - March 2022

   CORPORATE PRESENTATION - MARCH 2022

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. Environmental 8. Risk performance Social Governance 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 121 Years of $4.2 $18.3 Turnover cap (as on 31st Years Existence B B (FY21) Mar 2022) Listed 3 Sectors 29 Businesses 10 Companies 19 Geographical 90+ Manufacturing 51,000+ 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.) 36,105 45,748 70,852 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 26,711 9,384 14,488 31,260 58,978 NA 11,875 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(

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 18.7 lakh + customers 33,077 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 18.7 lakh plus customers till date 200 plus employees in year 2000 to 33,000+ employees today Rs. 82

9. Slide 9: Our journey so far

   Our journey so far FY 2020-21 FY 2021-22 FY 2015-20 2022 2016 2021 • GNPA recognition at 120 days • AUM crossed ₹69k Cr. • Reaffirmed as • AUM crossed ₹30K Cr. • Increased branch constituent of FY 2010-15 FTSE4Good Index • New LEAP LOS Digital platform network to 1137. • LMS v3.12 platform upgrade •

10. Slide 10: Highlights – Q4FY22 and FY22

    Highlights – Q4FY22 and FY22  Highest disbursement in the history of Chola at Rs.12718 crores in Q4 and Rs.35,490 crores in FY22 which is a growth of 58% and 36% respectively  Business AUM growth of 10% YoY at Rs.76,907 crores. Overview  PBT at Rs.929 crores in Q4FY22 (187% Growth) and Rs.2891 cr

11. Slide 11: Highlights – Q4FY22 and FY22

    Highlights – Q4FY22 and FY22  Focused on providing Home Loans under Affordable Segment with presence across 217 branches PAN India.  89% of assets are in tier 2,3,4 cities and suburbs of tier 1 cities HL  Delivered Disbursements of Rs.441 Cr in Q4 of FY 22 and Rs.1571 Cr in FY 22  PBT stood at R

12. Slide 12: 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|

13. Slide 13: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • Axis Mutual Fund • HDFC Mutual Fund • Birla Sun Life Mutual Fund • DSP Mutual Fund • SBI Mutual Fund • UTI Mutual Fund • HDFC Life Insurance Top Foreign Institutional Holding • Capital World o

14. Slide 14: Business Profile and AUM as on 31st Mar 2022

    Business Profile and AUM as on 31st Mar 2022 Business AUM Rs. 76,907Cr Vehicle Finance LAP Home Loan New Business Rs. 52,881Cr Rs. 17,115Cr Rs. 5,269Cr Rs. 1,642Cr 22% 7% 2% 69% SBPL 1% Used Vehicles Resale 13% HCV 7% BT 4% 27% Top-Up 1% LCV 21% CSEL 35% Tractor 10% Builder Self- Purchase - Construc

15. Slide 15: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) Himachal Pradesh (17) Chandigarh (2) 1091 1137 1145 Haryana (33) Uttarakhand (16) 873 907 Sikkim (1) Arunachal Delhi (5) Pradesh (1) Rajasthan (83) UP (73) Assam (25) FY18 FY19 FY20 FY21 FY22 Meghalaya (3) Bihar (43) Gujarat Mizoram (1) Ma

16. Slide 16: Financial Performance

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17. Slide 17: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS (5 years) years) Disbursem ents 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 35,490 36% 9% 13% Assets und

18. Slide 18: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 35,490 2,618 * 30,451 1,571 3% 2% 2% 2% * 29,091 2% 5% 7% 474 4% 6% 1,157 537 13% 13% 4% 1,505 * 26,043 5,862 13% 14% * 25,114 3,837 624 17% 726 3,662 1,542 606 3,174 3,627 25,439 82% 82% 80% 78% 24,983 72% 23,387 20,607 20,249 FY18 FY19 FY20 FY2

19. Slide 19: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 76,907 1,642 * 69,996 458 5,269 4,345 * 60,549 1% 0% 0% 1% 2% 258 17,115 2% 4% 5% 6% * 54,279 3,125 7% 14,777 135 24% 21% 1,912 21% 21% 12,960 22% * 42,924 11,626 377 978 10,097 50,415 52,881 73

20. Slide 20: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *11,708 164 2147 *9,560 164 *8,172 164 1515 *6,176 *5,098 156 11,543 1186 1052 156 9,396 918 8,008 6,019 4,942 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Reserves and Surplus Equity Share Capital * Total Networth 20

21. Slide 21: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.9% 3.0% 2.8% 7.7% 2.6% 2.6% 2.3% 7.3% 7.0% 6.9% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Loan Losses & Provisions (%) ROA - PBT (%) 2.0% 3.9% 3.7% 3.7% 1.6% 3.0% 2.7% 1.2% 0.9% 0.7% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 21

22. Slide 22: Shareholders' Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 20.9% 20.4% 19.6% 26.2 16.9% 15.2% 18.5 15.2 13.4 11.8 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 P/E Ratio P/BV Ratio 30.2 5.0 27.5 4.8 4.4 24.7 3.7 19.1 11.4 1.5 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 22

23. Slide 23: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 3,589 6,457 7,926 8,071 26,043 3,635 8,706 10,430 12,718 35,490 58% 36% Closing Assets 70,826 74,471 75,813 76,518 76,518 75,763

24. Slide 24: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) Particulars Mar-20 Mar-21 Mar-22 ₹ Cr ASSETS Financial Assets 63,021 73,365 81,081 Cash and Bank balance 6,959 5,232 4,220 Derivative financial instruments 114 46 187 Receivables 59 66 128 Loans 55,403 65,839 74,149 Investments 73 1,619 2,076 Other Financial Assets 413

25. Slide 25: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Mar-21 Mar-21 Mar-21 Mar-22 Mar-22 Mar-22 Mar-21 Mar-21 Mar-21 Mar-22 Mar-22 Mar-22 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

26. Slide 26: Stagewise ECL Summary – Mar 22

    Stagewise ECL Summary – Mar 22 Stage wise Summary - Mar 22 Rs in Cr Normal Total Normal Total Mgmt Mgmt Particulars Asset Model Overlay Provn NNPA Asset Model Overlay Provn NNPA Rs in Cr % Stage 1A (A ) 67,059 330 - 330 66,729 87.68% 0.49% 0.00% 0.49% 87.25% Stage 1B (B ) 259 13 - 13 246 0.34% 5.06%

27. Slide 27: 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% Mar'22 76,478 3,343 4.37% 1,326 39.67% 2,017 2.64% VF 53,816 2,097 3.90% 851 40.60% 1,245 2.31% LAP 15,768 1,041 6.60% 363 34.90% 677 4.30% HL 5,196 155 2.98%

28. Slide 28: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of March’22 is at 6.82% and 4.85% respectively. 28

29. Slide 29: Business Overview

    Business Overview 29

30. Slide 30: Vehicle Finance

    Vehicle Finance

31. Slide 31: Vehicle Finance: Q4FY22 & FY22 Performance

    Vehicle Finance: Q4FY22 & FY22 Performance • Disbursements grew by 43% in Q4FY22 at Rs.8785 crores as Disbursements compared to Rs.6153 crores in Q4FY21 and by 26% at Rs.25439 crores in FY22 as compared to Rs.20249 crores in FY 21. Assets under management • AUM have grown by 5% YoY Loss and • Loan l

32. Slide 32: 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 14% in Q4 FY’22 & 15% for the full year. This help us garner higher market share due to our segment is showing h

33. Slide 33: 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 marginal de-growth of 1% in Q4 FY’22 & a growth of especially in smaller towns and rural areas. We will 14% for the full y

34. Slide 34: 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 de-  Our exposure in this segment is around 6% at a growth of 17% in Q4 FY’22 & 8% for the full year due portfolio level and our focus will be on building to increasing cost of

35. Slide 35: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 2,73,844 Chola @ 14% 4,61,213 4,74,012 Chola @ 19% 2,31,702 15% CAGR @ 10% 3,58,750 1,92,947 3,37,684 CAGR @ 10% 1,76,381 2,94,324 1,43,869 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'22 YTD Mar'26 (E) Y

36. Slide 36: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) 3,19,383 (in Units) 2,95,394 Chola @ 85% Chola @10% 43,70,071 CAGR @ 20% 54% 14% 1,97,641 33,54,249 CAGR @ 10% 30,82,105 1,65,256 27,74,159 27,13,470 1,28,353 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'22 YT

37. Slide 37: 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

38. Slide 38: 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

39. Slide 39: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22

    Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala 6% 6% Kerala 6% 5% 6% Puducherry 6% 10% Gujarat 10% Puducherry 5% Telangana 4% Gujarat 0% 0% Telang

40. Slide 40: Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22

    Vehicle Finance - Disbursement/Portfolio Mix – Q4FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler 3 Wheeler HCV CE HCV CE 1% 8% 0.3% 9% 6% 6% 2 Wheeler 2 Wheeler 6% 4% LCV 18% LCV 21% MUV Used Vehicles 7% 27% Used Vehicles MUV 36% 7%

41. Slide 41: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 8,785 572 * 7,647 664 8% 6% 6% 6% 7% 447 333 5% 5% 4% 8% 1,579 7% * 6,153 * 6,161 1,332 18% 19% 17% 504 397 20% 18% Yield Low 279 590 413 7% 569 8% 8% 1,158 838 7% 6% 10% 1,231 776 1

42. Slide 42: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 52,881 * 50,415 * 50,675 6% 6% 6% 6% 6% * 48,403 * 49,285 3,395 Low Yield 3,069 3,189 9% 9% 9% 8% 7% 2,982 3,083 3,914 4,882 3,937 4,560 4,313 21% 21% 21% 21% 21% 10,995 10,472 10,568 Medium

43. Slide 43: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *52,881 24,983 25,439 *50,415 693 23,387 1,479 *44,206 20,607 20,249 *40,606 2,056 *31,473 52,187 48,937 40,606 42,150 31,473 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 On Book Assignm

44. Slide 44: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7,721 7,440 60% 2,054 6,624 5,485 1,269 1,287 4,241 988 945 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 44

45. Slide 45: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.8% 3.6% 8.2% 3.3% 7.8% 7.5% 3.0% 3.0% 7.2% 2.7% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Loan Losses & Provisions (%) ROA - PBT (%) 4.1% 2.5% 3.7% 3.6% 1.9% 2.7% 1.4% 2.2% 0.9% 0.9% FY18 FY19 FY20 FY21 FY22 FY18 FY19 F

46. Slide 46: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 3,231 4,781 6,084 6,153 20,249 2,846 6,161 7,647 8,785 25,439 43% 26% Closing Assets 46,828 49,264 49,936 50,415 50,4

47. Slide 47: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 3,231 4,781 6,084 6,153 20,249 2,846 6,161 7,647 8,785 25,439 43% 26% Closing Assets (On B/S) 44,775 47,354 48,244 48

48. Slide 48: Loan Against Property

    Loan Against Property

49. Slide 49: Loan Against Property – Q4FY22 & FY22 Performance

    Loan Against Property – Q4FY22 & FY22 Performance • Disbursements grew by 66% in Q4FY22 at Rs.1978 crores as Disbursements compared to Rs.1191 crores in Q4FY21 and by 62% at Rs.5862 crores in FY22 as compared to Rs.3627 crores in FY 21. Asset under • AUM have grown by 16% YoY. management • Loan loss

50. Slide 50: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • The NBFC sector would begin the year with sufficient • On back of improved economic activities, Business capital and provisions with stable margins and the has witnessed increased demand for LAP loans and expected YoY loan gro

51. Slide 51: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 62% * 17,115 5,862 * 14,777 1,544 * 12,960 2,062 * 11,626 * 10,095 2,425 3,837 1,671 3,662 3,627 671 3,174 15,571 12,716 9,954 10,536 9,424 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21

52. Slide 52: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,827 1,642 475 1,479 1,248 1,184 305 306 244 221 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 52

53. Slide 53: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.0% 1.2% 4.3% 1.1% 4.1% 1.1% 1.0% 3.8% 3.8% 1.0% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Loan Losses & Provisions (%) ROA - PBT (%) 1.1% 3.0% 2.8% 0.8% 2.3% 2.2% 0.8% 0.7% 2.0% -0.03% FY18 FY19 FY20 FY21 FY22 FY

54. Slide 54: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 119 1,052 1,265 1,191 3,627 386 1,736 1,763 1,978 5,862 66% 62% Closing Assets 13,109 13,866 14,457 14,777 14,7

55. Slide 55: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 119 1,052 1,265 1,191 3,627 386 1,736 1,763 1,978 5,862 66% 62% Closing Assets (On B/S) 10,683 11,516 12,239 12

56. Slide 56: Home Loans

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57. Slide 57: Home Loans – Q4FY22 & FY22 Performance

    Home Loans – Q4FY22 & FY22 Performance • Disbursements stood at Rs.441 crores in Q4FY22 as compared to Disbursements Rs.538 crores in Q4FY21 and grew by 2% at Rs.1571 crores in FY22 as compared to Rs.1542 crores in FY 21. Asset under • AUM have grown by 21% YoY. management • Loan losses improved to

58. Slide 58: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • Revival of demand in Q4 FY22 is expected to • Chola’s exposure is majorly into self- sustain in FY23. construction residential houses • As cash flows of micro and small businesses • Chola doesn’t have focus on developer supplied continu

59. Slide 59: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *5,269 527 1,542 1,571 *4,345 1,505 620 1,157 *3,125 677 4,742 *1,912 3,726 606 *978 2,449 1,912 978 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 On Book Assigned * Total AUM 59

60. Slide 60: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 671 91% 215 519 357 112 189 64 101 38 7 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 60

61. Slide 61: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.6% 3.7% 7.0% 6.5% 6.1% 6.1% 3.0% 2.8% 2.4% 2.2% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Loan Losses & Provisions (%) ROA - PBT (%) 1.8% 4.5% 1.5% 3.1% 2.8% 2.5% 0.9% 0.8% 0.9% 0.3% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20

62. Slide 62: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 190 381 434 538 1,542 199 494 437 441 1,571 -18% 2% Closing Assets 3,302 3,630 3,932 4,345 4,345 4,402 4,765 5,039 5,269 5

63. Slide 63: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q2FY21 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q4-o-Q4 Y-o-Y Disbursements 190 381 434 538 1,542 199 494 437 441 1,571 -18% 2% Closing Assets (On B/S) 2,613 2,962 3,288 3,726 3,726 3,801 4,186 4,48

64. Slide 64: Funding Profile

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65. Slide 65: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 18.36 19.07 17.36 5.41 3.93 3.13 5.12 4.92 15.28 15.14 16.49 13.24 12.44 FY18 FY19 FY20 FY21 FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care I

66. Slide 66: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 55,005 * 63,730 * 63,197 * 62,309 * 65,806 * 69,174 3% 4% 5% 4% 3% 7% 7% 3% 2% 2% 2% 2% 8% 6% 5% 5% 7% 6% 6% 5% 6% 6% 7% 2% 3% 7% 3% 3% 2% 2% 10% 15% 14% 14% 15% 14% 60% 55% 58% 55% 57% 61% 8% 7% 6% 7% 6% 6% Mar-20 Mar-21

67. Slide 67: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 55,005 * 63,730 * 63,197 * 62,309 * 65,806 * 69,174 8% 7% 6% 6% 5% 5% 2% 2% 4% 2% 3% 2% 1% 2% 2% 2% 4% 2% 5% 6% 6% 6% 4% 7% 66% 66% 69% 67% 63% 68% 3% 1% 1% 1% 4% 4% 1% 1% 4% 4% 4% 5% 11% 9% 8% 11% 9% 5% 2% 2% 3% 2% 3% 3% M

68. Slide 68: ALM Statement as of 31st Mar 2022 (As per IND AS)

    ALM Statement as of 31st Mar 2022 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2022 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 2,002.65 - 2,036.36 37.22 48.57 194.28 194.28 827.78 5,341.12 Advances 2,232.44 2,285.63 2,047.75 7,64

69. Slide 69: Subsidiaries

    Subsidiaries 69

70. Slide 70: Subsidiaries – Q4FY22 & FY22

    Subsidiaries – Q4FY22 & FY22 •CHFL recorded a gross income of Rs. 15.90 crores in Q4FY22 as •During the quarter CSEC focused on the three distinct business compared to Rs. 10.82 crores in Q4FY21 and PBT of Rs.1.22 lines for enhancing revenues and productivity - broking, wealth crores as compared to

71. Slide 71: Associate and Joint Venture – FY22

    Associate and Joint Venture – FY22 Paytail is a new age Fintech company focusing on offline ‘Buy Payswiff is a leading POS provider in India enabling online Now Pay Later’ through brand partnerships. Through payment gateway services for e-commerce businesses and a funding partnership with Paytail, C

72. Slide 72: Environmental Social Governance

    Environmental Social Governance 72

73. Slide 73: Environmental, Social & Governance (ESG) at Chola

    Environmental, Social & Governance (ESG) at Chola Corporate Access to Finance Governance ESG based Privacy & Data lending Security Innovation Digitization Employee Wellness Carbon Learning & Development Waste Diversity & Inclusion Green Building Empowering Communities https://www.cholamandalam.com/e

74. Slide 74: Responsible Products

    G Responsible Products Access to Our products focus on first time borrowers (FTB) and new to credit customers (NTCC) ensuring financial inclusion of sections of society including micro business owners Finance Vehicle Financing Loan against Property Focus on transport entrepreneurs, first time borrow

75. Slide 75: Improving Efficiency

    G Improving Efficiency Digitization Effective Governance Corporate Governance Privacy & Data Security Policies and process in place to enable Policy review at board level on periodic basis; Digitization highest standards in governance and Training on data security and privacy transparency; ethical b

76. Slide 76: People Power

    People Power S Employee Wellness Diversity & Inclusiveness  Emotional & mental wellbeing programs: Utilized by several employees in the past  Business activities such as hiring, year promotion, and compensation of  Dedicated grievance hotline employees, conducted without regard to  Focus on Stre

77. Slide 77: Environmental Consciousness Green Building

    E Environmental Consciousness Green Building Waste Carbon We aim at incorporating green methods With a clear focus on sustainability, As an environmentally responsible in the construction of our upcoming Chola has a well defined e-waste company Chola has taken various office buildings. The latest of

78. Slide 78: ESG Certification – FTSE Russell

    ESG Certification – FTSE Russell Our Company has been included in the FTSE4Good Index Series, created by the global index and data provider FTSE Russell. The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) pra

79. Slide 79: Risk Management

    Risk Management 79

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 84

85. Slide 85: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all  Drive enhanced usage of hybrid cloud solutions and adopt  Enhance digital solution for new personal loans and business cloud-

86. Slide 86: ECL Methodology

    a murugappa ECL Methodology 86

87. Slide 87: Changes to ECL Methodology

    Changes to ECL Methodology • RBI had made changes to the method of evaluating the NPAs as per their circular dated 12th Nov 2021. • While these changes are regarding evaluation of NPA as per Income Recognition and Asset Classification and Provisioning (IRACP) as defined by RBI and has no bearing dir

88. Slide 88: Asset Classification

    Asset Classification Stage 1 - On initial recognition, all loans are classified as Stage 1. Subsequently, loans which are not more than 30 DPD on the reporting date are classified as Stage 1. It also includes loans which have been reclassified from Stage 2 or Stage 3 on improvement in credit quality

89. Slide 89: Measurement Framework

    Measurement Framework Asset ECL classification PD 12 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

90. Slide 90: Measurement Framework

    Measurement Framework Asset ECL Description classification PD  12 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 with

91. Slide 91: 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 Loan Against Property Others Loan MLCV/2W/3W LAP Tamil HCV New LCV New LAP Delhi New Nadu LAP Punjab / OLDER CAR/MUV New USED Haryana

92. Slide 92: 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

93. Slide 93: 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

94. Slide 94: Thank You

    Chola ie Enter a better life murugappa THANK YOU Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company — Investor Presentation (March 2022) on 6ix