Home First Finance Company India Ltd. · NSE:HOMEFIRST

Home First Finance Company India — Q4 FY21 Earnings Presentation

37 slides from Home First Finance Company India's earnings presentation, May 3, 2021

  1. Slide 1: Exchange filing cover letter for investor presentation

    HFFCIL/BSE/NSE/EQ/13/2021-22 Date: 03-05-2021 To, To, BSE Limited, The National Stock Exchange of India Limited, Department of Corporate Services, The Listing Department, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Mumbai- 400 051. Mumbai- 400001. Scrip Code- 543259 Scrip Symbol-

  2. Slide 2: Investor Presentation – Q4 FY21

    Tech in Mind Service at Heart Smart Loans for Affordable Homes! Investor Presentation – Q4 FY21

  3. Slide 3: 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

  4. Slide 4: HomeFirst – Listing

    HomeFirst – Listing Homefirst listed on NSE and BSE on 3 Feb’21 – which coincides with the company’s date of Incorporation ₹11,537.19 Mn ₹518 per share Total issue size Offer price ₹2,650.00 Mn 26.21 Primary issue Times subscription Number of times Sr No. Category Shares offered Shares applied for Subs

  5. Slide 5: Executive Summary | FY21

    y-o-y Executive Summary | FY21 Assets Under Management (AUM) Disbursement Profit After Tax (PAT) ₹41,411 Mn ₹10,966 Mn ₹1,001 Mn +14.4% -32.2% +25.9% Spread* Gross Stage3/POS Return on Assets (ROA) 5.0% 1.8% 2.5% +90 bps +80 bps -20 bps Opex to Assets Cost to Income 25.9% y-o-y growth in PAT; 2.7% 39

  6. Slide 6: Executive Summary | Q4FY21

    y-o-y q-o-q Executive Summary | Q4FY21 Assets Under Management (AUM) Disbursement Profit After Tax (PAT) ^ ₹41,411 Mn ₹4,518 Mn ₹313 Mn +14.4% +5.1% +30.4% +29.5% +150.8% +96.6% Spread * Gross Stage3/POS Return on Assets (ROA) 5.4% 1.8% 2.9% +90 bps +40 bps +80 bps +20 bps +140 bps +130 bps Opex to A

  7. Slide 7: HomeFirst – Who we are

    HomeFirst – Who 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 92% of book comprise of housing loans with average ticket size of ₹1.1 Mn Strong liquidity pip

  8. Slide 8: Our Journey

    Our Journey Scalable operating model CARE Rating CARE / ICRA Rating We got listed BBB- BBB+ A- A+ ₹41,411 Mn Warburg Pincus invested in the company (2) AuM Series C 60,000+ sanctions True North acquires AuM crosses majority ₹35 bn. stake 30,000+ customers GIC Net worth Co-investment crosses Series B

  9. Slide 9: Share Holding as on Mar'21

    Share Holding as on Mar’21 PROMOTER & PROMOTER GROUP % Holding TRUE NORTH FUND V LLP 20.3 AETHER (MAURITIUS) LIMITED (GIC)^ 13.4 TRUE NORTH FUND V LLP KEY INVESTORS % Holding 12.0% 20.3% ORANGE CLOVE INVESTMENTS B.V (WARBURG PINCUS) 28.8 AETHER (MAURITIUS) LIMITED (GIC)^ BESSEMER INDIA CAPITAL HOLDI

  10. Slide 10: Experienced Management Team with Distinguished Board

    Experienced Management Team with Distinguished Board Experienced Management Team Distinguished Board Manoj Viswanathan Ajay Khetan Deepak Satwalekar Chairman & Chief Executive Officer Chief Business Officer Ex MD, CEO - HDFC Life Independent Director 24+ years in Consumer Lending. 19+years in Consumer L

  11. Slide 11: 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? 75% Salaried 25% Self employed Teacher with

  12. Slide 12: 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 range (1) requirements of traditional 56 75%+ Cu

  13. Slide 13: Distribution Strategy

    0-4 4-7 7 - 15 Distribution Strategy Contribution to India's GDP FY’20 ( % ) Existing branches - 72 New branch locations - 23 Pan India Distribution driven by strategic market selection & contiguous expansion Digital branches - 20 72 60 11 01 Geographic Expansion Branches Districts States UT Number

  14. Slide 14: Omni channel lead generation driving sourcing

    Omni channel lead generation driving sourcing Diversified lead generation channels | FY21 62.2% Diversified channels for generating leads such as connectors, builder 14.6% ecosystem, digital, etc. 6.1% 4.0% 7.4% 2.2% 2.5% 0.9% Strategic Construction Micro Builder Digital Marketing Branch Connectors Al

  15. Slide 15: 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

  16. Slide 16: Scalable operating model built on holistic technology usage

    Scalable operating model built on holistic technology usage API Integration with third party Home First App for all stakeholders databases Customers registered on app 360o view of customer for employees Proprietary property price predictor Electronic payments DAT Y Edcast: AI powered knowledge IT AA

  17. Slide 17: Business Updates

    Business Updates

  18. Slide 18: Healthy Growth in Loan Book and Disbursements

    Healthy Growth in Loan Book and Disbursements Disbursement ( ₹Mn ) Last 4 Years Last 4 Quarters Q4 FY21 16,183 Record disbursals 15,728 30.4% growth over Q4 FY20 and 10,966 7,455 29.5% growth over Q3 FY21 3,488 4,518 2,431 528 FY18 FY19 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Assets Under Manageme

  19. Slide 19: Consistent Portfolio Metrics | Mar'21

    Consistent Portfolio Metrics | Mar’21 1% 1% 6% 1% AUM by Product AUM by Occupation Housing Loan Loans for purchase of 25% Salaried Self Employed commercial property Corporate Loan Against Property Developer Finance Sharp focus on High ratio of 92% housing loans 74% salaried customers 31% 3% 9% AUM b

  20. Slide 20: Expansion in Spreads

    Portfolio Yield Expansion in Spreads COB Spread Net Interest Spread Movement Last 4 Years Last 4 Quarters Sharp Improvement in Cost of Borrowing H2 FY21 13.0% 13.1% 13.1% 13.0% 12.9% 12.8% 12.6% 12.3% Rate reset in existing 8.8% 8.8% 8.5% term loans and 8.4% 8.3% 8.0% 8.0% lower cost of 7.4% fresh b

  21. Slide 21: Healthy Leading Indicators

    Bounce rate Healthy Leading Indicators Bounce rate : On the day of EMI presentation Bounce rates continuously 36.4% improving 28.3% 20.1% 17.3% 11.7% 10.8% 10.2% 10.9% 10.0% 10.5% 9.2% 9.5% Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 20 Investor Pr

  22. Slide 22: Healthy Leading Indicators

    Collection Efficiency (1) Healthy Leading Indicators Unique Customers (2) Collection Efficiency Collection efficiency continuously improving 99.8% 97.8% 98.5% 97.6% 97.7% 96.9% 96.3% 96.6% 96.3% 96.3% 95.5% 96.1% 95.3% 94.3% 93.8% 84.6% 83.5% 78.4% 79.8% 74.7% 72.9% 72.5% 64.4% 63.7% Apr’20 May’20 Jun’20

  23. Slide 23: Sound Credit Indicators

    Sound Credit Indicators Gross Stage 3 / POS % Net Stage 3 / Net POS % Stage 3% range bound 1.8 1.8 1.6 SARFAESI recovery 1.2 1.1 1.2 1.0 1.0 processed has 0.8 0.9 0.8 0.7 commenced 0.6 0.5 0.6 0.6 Mar’18 Mar’19 Mar’20 Mar’21 Jun’20 Sep’20 Dec’20 Mar’21 Mar’18 Mar’19 Mar’20 Mar’21 Jun’20 Sep’20 Dec’2

  24. Slide 24: Diversified Funding Profile at competitive cost of borrowing

    Diversified Funding Profile at DA NCD COB% (Represents quarterly avg.) competitive cost of borrowing NHB Refinance NBFC Public Sector Banks Borrowings Mix and Cost of Borrowing trend Pvt Sector Banks Diversified mix of 17* marquee Lenders 15% 17% 20% 21% 19% 19% 22% 21% ZERO borrowing 23% 7% 6% 8.9% 20%

  25. Slide 25: ALM Position as of Mar'21

    ALM Position as of Mar’21 Inflow Outflow Cumulative Surplus 7,628 10,580 8,772 9,743 17,656 11,570 (₹Mn) Robust ALM profile ensuring 70,445 58,875 sufficient liquidity 58,878 buffers 42,332 41,222 22,903 32,589 Cumulative 18,080 Positive flows 12,018 14,171 across all the 7,500 time buckets 4,390 0 - 3 Mon

  26. Slide 26: Securitization Volume

    Securitization Volume ₹2,756 Mn ₹3,574 Mn ₹3,003 Mn Consistent 2,383 demand for securitization of the company’s 1,844 portfolio 1,491 1,472 1,159 611 373 - - - - - Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 25 Investor Presentation – Q4 FY21

  27. Slide 27: Strong Liquidity Position

    Strong Liquidity Position Liquidity Buffer as on Mar’21 (in ₹Mn) Unencumbered Cash and Cash equivalent 10,015 Un-availed Sanc on from NHB - Un-availed Sanc on from Banks 3,545 13,560 ₹2,650 million Total Capital raised through public offer Par culars (in ₹Mn) Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Opening Li

  28. Slide 28: Financial Updates

    Financial Updates oO

  29. Slide 29: Financial Highlights

    Financial Highlights (1) Profit After Tax ( ₹Mn ) Net worth ( ₹Mn ) YoY: +25.9% Equity Raised ( ₹Mn ) - 1,508 3,281 3,450 1,001 796 Strong profit 13,805 Strong NW, 457 and low A/E to growth despite 9,334 maintaining high 5,227 support growth 160 3,252 liquidity and conservative FY18 FY19 FY20 FY21 COV

  30. Slide 30: ECL Provisions Summary

    ECL Provisions Summary Loan Par culars (in ₹Mn) Stage 1 Stage 2 Stage 3 Total Commitment For period ended Mar’21 Loans – Principal Outstanding 32,323.0 773.3 621.7 33,718.0 ECL Provision 121.0 108.4 223.6 9.5 462.5 Net Loans – Principal Outstanding 32,202.0 664.9 398.1 33,255.5 ECL Provision % 0.4%

  31. Slide 31: Annexures

    Annexures

  32. Slide 32: Quarterly and Annual Profit & Loss Statement

    Quarterly and Annual Profit & Loss Statement Par culars (in ₹Mn) Q4 FY21 Q3 FY21 Q4 FY20 QoQ YoY FY21 FY20 YoY Interest Income on 4,026.0 3,425.0 17.5% 1,030.5 1,013.7 948.9 1.7% 8.6% term loans Net gain on DA 181.7 - - 439.4 371.2 Non-Interest Income 143.1 90.9 109.0 426.3 400.6 Total Income 1,355.3

  33. Slide 33: RoE Tree

    RoE Tree Par culars Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Interest Income on term loans / Average total assets 9.7% 10.5% 11.3% 10.1% 11.5% Net Gain on DA / Average total Assets 1.7% 0.0% 0.0% 1.1% 1.2% Non-Interest Income / Average total assets 1.3% 0.9% 1.3% 1.1% 1.4% Total Income / Average total asse

  34. Slide 34: Key Financial Ratios

    Key Financial Ratios Par culars FY21 FY20 Profit a er tax on average total assets (ROA) 2.5% 2.7% Leverage (Average total assets / average Equity or average Net worth) 3.5 4.1 Profit a er tax on average equity or average Net worth (ROE) 8.7%* 10.9% Cost to Income Ra o (Opera ng Expenses / Net Total In

  35. Slide 35: Balance Sheet

    Balance Sheet Par culars (in ₹Mn) FY21 FY20 ASSETS Cash & cash equivalents and Other bank balance 6,798.7 2220.6 Loans 33,265.0 30,139.1 Investments 3,750.1 1,455.6 Other financial assets 1,011.7 663.3 Property, plant and Equipment 164.0 204.8 Non-financial assets other than PPE 112.1 118.7 TOTAL ASSE

  36. Slide 36: Thank You

    Thank You For further information, please contact Company Investor Relations Advisors CIN: U65990MH2010PLC240703 Ms. Neha Shroff Mr. Manish Kayal +91 7738073466 manish.kayal@homefirstindia.com neha.shroff@linkintime.co.in Investor Relations - HomeFirst investor.relations@homefirstindia.com

  37. Slide 37: Glossary

    Glossary Terms Explana on Loans – Principal outstanding represents gross principal outstanding of loans as of the last day of the relevant POS - Principal Outstanding period or year as per the restated financial statements. Net Interest Income represents interest income on term loans minus Interest o

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