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

Cholamandalam Investment And Finance — H1 FY24 Earnings Presentation

85 slides from Cholamandalam Investment And Finance's earnings presentation, Nov 2, 2023

1. Slide 1: Board meeting outcome intimation letter

   "~~ Chola Enter a better life November 2, 2023 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4 th Floor, Kamala Mills 1st Floor, P.J. Towers Compound, Senapati Bapat Marg, Dalal Street, Fort, Lower Parel, Mumbai 400 001 Mumbai 400 013 NSE SCRIP CODE: CHOL

2. Slide 2: Intimation letter (continued)

   - - - - -- - - -- Further, please find enclosed the disclosure on related party transactions on a consolidated basis and balances for the half year ended 30th September, 2023 pursuant to reg.23(9) of the Listing Regulations. The said disclosure is also being made available on the company's website w

3. Slide 3: Corporate Presentation - September 2023

   CORPORATE PRESENTATION - September 2023

4. Slide 4: 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

5. Slide 5: Murugappa Group Overview

   Murugappa Group Overview 3

6. Slide 6: Murugappa Group in a Nutshell

   Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $38.4 Turnover cap (as on 30th Years Existence B B (FY23) Sep 2023) Listed 3 Sectors 29+ Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 4

7. Slide 7: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 36,090 84,048 1,10,827 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 33,717 9,284 22,368 57,707 1,00,148 NA 21,747 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,15

8. Slide 8: Corporate Overview

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9. Slide 9: 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

10. Slide 10: Cholamandalam Investment & Finance Company Limited

    Cholamandalam Investment & Finance Company Limited 30.9 lakh + customers 50,980 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 30.9 lakh plus customers till date 200 plus employees in year 2000 to 50,000+ employees today Rs. 1.

11. Slide 11: Our journey so far

    Our journey so far FY 2024 FY 2022 - 23 FY 2021 FY 2016-20 2024 • Total AUM crossed 2022 ₹1.3 lakh Cr. FY 2010-15 2021 • Launched • LAP platform Consumer & Small 2016 • Increased branch • New LEAP LOS Digital platform digitization Enterprise Loan FY 1979-2010 network to 1267. (CSEL), Secured 2011 20

12. Slide 12: Highlights – H1 FY24 (I)

    Highlights – H1 FY24 (I) Particulars H1 FY24 Vs H1 FY23 Disbursement Disbursement at Rs.41,557 Cr, a growth of 49%. Business AUM Rs. 1,24,246 Cr in Q2 FY24 registering a growth of 42%. NIM 7.4% as compared to 7.8% PBT Rs.1,489 Cr, a growth of 32% PBT – ROTA 3.3% as compared to 3.5% Return on Equity

13. Slide 13: Highlights – H1 FY24 (II)

    Highlights – H1 FY24 (II) Particulars H1 FY24 Vs H1 FY23 • Well-diversified product portfolio spread across 1215 branches PAN India • Focused on financing of Commercial, Passenger, Two-wheelers, Tractors and VEHICLE FINANCE Construction Equipment in both New and Used Vehicles. Overview • Our focus c

14. Slide 14: Highlights – H1 FY24 (III)

    Highlights – H1 FY24 (III) Particulars Highlights ▪ CSEL - Offers Personal Loans, Professional Loans & Business Loans to salaried, self-employed professionals and micro & small businesses through traditional DSA/DST model, partnerships and FinTech's. – present in 408 locations (co-located) and have

15. Slide 15: 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|

16. Slide 16: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Top Domestic Institutional Holding Mutual Bodies Funds 3.16% • Axis Mutual Fund 17.77% • HDFC Mutual Fund • SBI Mutual Fund Public • Birla Sun Life Mutual Fund 5.73% Promoters • Canara Robeco Mutual Fund 51.43% Top Fore

17. Slide 17: Strong Geographical Presence

    Strong Geographical Presence 540 571 516 Jammu & Kashmir (7) Punjab (24) Himachal Pradesh (16) Chandigarh (1) 1145 1191 1204 1267 Uttarakhand (19) Haryana (40) Sikkim (1) Arunachal Delhi (5) Pradesh (1) FY22 FY23 Q1 FY24 Q2 FY24 Rajasthan (86) UP (79) Assam (30) Physical Branch RL Meghalaya (3) Biha

18. Slide 18: Financial Performance

    Financial Performance Petey GMT SM ) Daan if Fi, ld Wh “sath Hn" | uA ot (Wied ig wir

19. Slide 19: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR CAGR Financials Snapshot YoY (5 (10 IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS years) years) Disbursem ents 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 35,490 66,532 87% 22% 20% Assets un

20. Slide 20: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 41,557 16% 19% 23% 21% 23% 23% 5% 9,625 5% 7% 5% 7% 15% 7% * 27,953 15% 3,029 13% 15% 15% 14% * 21,542 5,254 5,872 * 20,015 1,354 * 14,623 5,044 * 13,329 4,581 4,282 1,454 3,132 1,575 64% 2,121 57% 58% 61% 56% 2,679 3,192 23,032 54% 611 743 2,036

21. Slide 21: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,24,246 * 1,14,796 4% 10% 5% 10% 13,327 7% 8% 11,337 8% 9% 10,801 9,528 22% 21% * 87,668 * 81,925 20% 20% 4,765 24,721 2,937 22,866 6,454 5,938 17,675 18,843 68% 66% 75,396 62% 61% 71,065 55,37

22. Slide 22: Chola – Disbursement Mix – H1 FY24

    Chola – Disbursement Mix – H1 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler SBPL 3 Wheeler 1% 0.4% SBPL 1% 2 Wheeler 2 Wheeler SME 4% 1% SME 5% CSEL 3% 10% 7% Us ed Vehicles HL 16% CSEL 9% Us ed Vehicles 13% 18% Tra ctor Tra ctor 0.4%

23. Slide 23: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1489 *15,773 *15,027 165 165 *12,849 1129 *12,316 164 164 762 726 14,862 15,609 566 563 12,152 12,684 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Reserves and Surplus Equity Share Capital 21

24. Slide 24: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.0% 7.8% 7.6% 7.4% 7.4% 3.0% 3.0% 7.3% 2.8% 2.9% 2.8% 2.7% Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 1.5% 3.7% 1.3% 3.5% 1.3% 1.3% 3.3% 3.4% 1.2% 1.

25. Slide 25: Shareholders' Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 19.9% 19.8% 36.9 19.7% 35.5 36.2 18.9% 27.6 27.2 27.4 18.3% 17.8% Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 P/E Ratio P/BV Ratio 33.0 33.6 6.2 6.3 6.3 32.1 26.9 26.7 4.7 4.7

26. Slide 26: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 13,329 20,015 14,623 21,542 47% 27,953 41,557 49% Closing Assets - Managed 86,703 1,22,755 91,841 1,33,775 46% 91,841 1,33,775 46% Income 2,771 4

27. Slide 27: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Sep22 Mar23 Sep23 ASSETS Financial Assets 92,222 1,12,075 1,35,126 Cash and Bank balance 3,499 2,961 7,852 Derivative financial instruments 310 273 288 Receivables 174 191 252 Loans 85,477 1,04,748 1,22,889 Investments 2,467 3,628 3,610 Other Financial

28. Slide 28: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Jun23 Sep23 Jun23 Sep23 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,15,731 1,25,578 100.0% 100.0% Stage 1 1,08,126 1,17,818 93.43% 93.82% Stage 2 4,059 4,041 3.51% 3.22% Stage 3 3,546 3,719 3.06% 2.96% Provision 2,499 2,689 2.16% 2.14% Stage 1 4

29. Slide 29: Stagewise ECL Summary – Sep 23

    Stagewise ECL Summary – Sep 23 Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,17,589 505 1,17,084 93.64% 0.43% 93.24% Stage 1B (B ) 229 11 218 0.18% 4.69% 0.17% Total Stage 1 (C ) 1,17,818 516 1,17,303 93.82% 0.44% 93.41% - Stage 2A (D ) 2,872 269 2,603 2.29% 9.

30. Slide 30: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise ₹ Cr Closing Gross Stage 3 ECL Provision Net Net Asset Class Asset Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Sep23 1,25,578 3,719 2.96% 1,760 47.32% 1,959 1.56% VF 77,169 2,563 3.32% 1,217 47.48% 1,346 1.74% LAP 24,270 817 3.37% 368 44.97% 450 1.85% HL 10,533 14

31. Slide 31: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend Chola 47.32% 50.00% 46.00% 45.40% 12.00% 45.00% 10.00% 41.48% 40.96% 40.69% 39.67% 38.80% 40.00% 8.00% 5.85% 35.00% 6.00% 4.37% 4.16% 2.27% 3.84% 3.51% 4.00% 3.01% 3.06% 30.00% 2.96% 1.73% 1.69% 1.59% 1.44% 2.00% 1.38% 1.39% 1.40% 25.00% 3.58% 2.64% 2.47% 2.25% 2.07% 1.62

32. Slide 32: Business Overview

    Business Overview 30

33. Slide 33: Vehicle Finance

    Vehicle Finance

34. Slide 34: Vehicle Finance: Q2 FY24 & H1 FY24 Performance

    Vehicle Finance: Q2 FY24 & H1 FY24 Performance • Disbursements grew by 38% in Q2 FY24 to Rs. 11,731 Cr & by 35% in Disbursements H1 FY24 to Rs. 23,032 Cr as compared to Q2 FY23 & H1 FY23 respectively. Assets under • AUM has grown by 31% YoY. management Loss and • Loan losses dropped to 1.7% in Q2 FY

35. Slide 35: 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 7% in Q2 FY’24 & 3% in H1 FY’24 with an all-time help us garner higher market share, we will continue high sales

36. Slide 36: 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 ▪ We will continue to focus in this segment in line growth of 5% in Q2 FY’24 and 7% in H1 FY’24 with an with market demand especially in smaller towns all-time high sales

37. Slide 37: 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 growth ▪ Our exposure in this segment is around 7% at of 29% in Q2 FY’24 and 22% in H1 FY’24. This a portfolio level. We follow a guarded segment is aided by improvement in over

38. Slide 38: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola YoY growth rate -2% (in Units) Chola 4 year (in Units) CAGR 2% Chola YoY growth rate 9% 65744 CAGR 16% Industry YoY growth 183522 rate -8% CAGR @ 5% 51512 47299 CAGR @ 10% 44065 121907 38446 113953 75254

39. Slide 39: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) Chola 4 year Chola YoY growth rate 34% Chola 4 year Chola YoY growth rate 9% CAGR 29% (in Units) CAGR 79% 104543 1655479 CAGR @ 10% 76603 CAGR @ 10% 1027922 1076397 64913 726938 743410 42366 19127 Q2 FY21

40. Slide 40: 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

41. Slide 41: 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

42. Slide 42: Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24

    Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadar and Nagar Haveli Nagar Haveli & Daman and & Daman and Diu MP Diu AP MP AP Karnataka Karnataka Maharashtra 0.04% 0.04% Maharashtra Gujarat 5% Kera

43. Slide 43: Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24

    Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 3 Wheeler 3 Wheeler CE HCV CE 0.3% 1% 5% 7% LCV 5% 6% 16% 2 Wheeler 2 Wheeler 6% 9% LCV 21% MUV 10% Used Vehicles MUV 27% Used Vehicles 9% CAR 12

44. Slide 44: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 * 11,731 5% * 11,301 6% 7% 7% 6% 882 5% 627 6% 5% 5% * 10,446 1,053 653 640 9% 584 16% 687 19% 17% 17% 560 1,860 18% * 8,502 2,211 1,936 9% 10% Yield 9% Low 468 1,816 9% 479 1

45. Slide 45: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 75,396 6% 7% 7% 7% 7% * 71,065 4,906 7% 7% 7% 7% 7% * 66,938 4,721 5,058 * 61,285 4,487 4,878 * 57,606 21% 21% 21% 21% 21% 3,990 4,742 Medium Yield Low Yield 15,583 3,666 4,126 14,814 4,015 1

46. Slide 46: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *75,396 23,032 *71,065 97 146 *57,606 17,063 *55,376 417 547 11,731 75,299 11,301 70,918 8,562 8,502 54,829 57,189 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 F

47. Slide 47: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 5,187 1,000 948 4,146 2,690 2,498 480 501 499 468 2,133 2,013 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 45

48. Slide 48: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.9% 8.7% 8.5% 3.3% 3.3% 3.3% 3.1% 7.6% 7.4% 3.0% 7.2% 2.8% Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 2.1% 3.6% 1.9% 3.4% 1.8% 3.3%

49. Slide 49: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 8,562 11,301 8,502 11,731 38% 17,063 23,032 35% Closing Assets - Managed 55,376 71,065 57,606 75,396 31% 57,606 75,396 31% Income 2,0

50. Slide 50: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 8,562 11,301 8,502 11,731 38% 17,063 23,032 35% Closing Assets (On B/S) 54,829 70,918 57,189 75,299 32% 57,189 75,299 32% Income 1,99

51. Slide 51: Loan Against Property

    CO eee ets Loan Against Property

52. Slide 52: Loan Against Property – Q2 FY24 & H1 FY24 Performance

    Loan Against Property – Q2 FY24 & H1 FY24 Performance • Disbursements grew by 42% in Q2 FY24 to Rs. 3,192 Cr & by 37% in Disbursements H1FY24 to Rs. 5,872 Cr as compared to Q2 FY23 & H1 FY23 respectively. Asset under • AUM has grown by 31% YoY. management • Loan losses dropped to -0.10% in Q2 FY24 f

53. Slide 53: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth at a • Chola’s LAP team is currently focusing on increasing its rate of 10-12% for FY24, on back of favorable economic market share backed by consistent disbursement condit

54. Slide 54: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 24,721 * 22,866 950 5,872 1,030 * 17,675 * 18,843 1,318 1,418 4,282 23,771 3,192 21,836 2,679 17,525 2,246 16,257 2,036 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24

55. Slide 55: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,460 458 378 1,043 757 704 234 224 200 540 178 503 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 53

56. Slide 56: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 1.8% 5.7% 1.6% 5.6% 5.5% 5.5% 5.4% 5.3% 1.4% 1.4% 1.3% 1.2% Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) Q1 FY23 Q1 FY24 Q2 FY23

57. Slide 57: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 2,036 2,679 2,246 3,192 42% 4,282 5,872 37% Closing Assets - Managed 17,675 22,866 18,843 24,721 31% 18,843 24,721 31% Income 5

58. Slide 58: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 2,036 2,679 2,246 3,192 42% 4,282 5,872 37% Closing Assets (On B/S) 16,257 21,836 17,525 23,771 36% 17,525 23,771 36% Income 453

59. Slide 59: Home Loans

    Home Loans

60. Slide 60: Home Loans – Q2 FY24 & H1 FY24 Performance

    Home Loans – Q2 FY24 & H1 FY24 Performance • Disbursements grew by 112% in Q2 FY24 to Rs. 1,575 Cr & by 124% in Disbursements H1FY24 to Rs. 3,029 Cr as compared to Q2 FY23 & H1 FY23 respectively. Asset under • AUM have grown by 67% YoY. management • Loan losses dropped to 0.4% in Q2 FY24 from 0.5% i

61. Slide 61: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • The overall growth in HFCs is expected to remain at • Chola continues to consolidate its position across 12-14% in FY24 branches pan-India while also targeting expansion in newer underpenetrated geographies • GNPAs of AHFCs are likely t

62. Slide 62: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 3,029 *10,801 392 *9,528 413 *6,454 *5,938 478 1,575 500 1,454 10,409 1,354 9,115 5,976 5,438 743 611 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 On Book Assign

63. Slide 63: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 183 742 158 426 96 398 87 344 74 85 222 204 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 61

64. Slide 64: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.4% 8.2% 8.1% 3.9% 4.0% 4.0% 7.7% 7.9% 7.9% 2.7% 2.4% 2.1% Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Loan Losses & Provisions (%) ROA - PBT (%) 5.9% 0.5% 5.3% 0.4% 0.4% 4.7% 0.4%

65. Slide 65: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 611 1,454 743 1,575 112% 1,354 3,029 124% Closing Assets - Managed 5,938 9,528 6,454 10,801 67% 6,454 10,801 67% Income 204 344 222 398 79

66. Slide 66: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Disbursements 611 1,454 743 1,575 112% 1,354 3,029 124% Closing Assets (On B/S) 5,438 9,115 5,976 10,409 74% 5,976 10,409 74% Income 185 331 205 383 87%

67. Slide 67: Funding Profile

    ih onda (CCT Corres tana

68. Slide 68: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 79,321 * 89,305 * 97,356 * 1,08,140 * 1,19,470 4% 6% 4% 6% 2% 7% 3% 3% 3% 7% 3% 9% 10% 5% 2% 15% 16% 4% 4% 4% 4% 3% 2% 18% 4% 5% 18% 16% 15% 14% 58% 52% 54% 49% 49% 5% 4% 5% 5% 4% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 T

69. Slide 69: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 79,321 * 89,305 * 97,356 * 1,08,140 * 1,19,470 7% 9% 10% 15% 16% 1%3% 1% 3% 4% 3% 1% 3% 3% 3% 1% 3%3% 0.4% 2% 66% 64% 65% 61% 60% 1% 1% 1% 1% 5% 6% 1% 6% 6% 6% 9% 10% 8% 7% 8% 3% 3% 3% 3% 3% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24

70. Slide 70: ALM Statement as of 30th Sep 2023 (As per IND AS)

    ALM Statement as of 30th Sep 2023 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2023 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 6,843.82 472.69 2,210.54 3.10 707.40 600.00 196.18 - 11,033.73 Advances 4,140.98 3,942.35 3,440.65 11,

71. Slide 71: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.07 19.62 17.13 17.44 16.62 3.93 3.13 2.35 2.30 1.96 15.14 16.49 14.78 15.14 14.66 FY21 FY22 FY23 Q1 FY24 Q2 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Launched a composite QIP issue of equi

72. Slide 72: Consolidated Financials

    Consolidated Financials 70

73. Slide 73: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q2-o-Q2 H1-o-H1 Income 2,796 4,171 3,067 4,695 53% 5,863 8,866 51% Expenses 2,032 3,215 2,305 3,630 57% 4,337 6,845 58% PBT 764 956 762 1,065 40% 1,526 2,021 32% PAT 562 710 563 773 37% 1,1

74. Slide 74: Environmental Social Governance

    Environmental Social Governance 72

75. Slide 75: Consecutively awarded for last 4 years

    Consecutively awarded for last 4 years……. FY21 • FTSE Russell - Included in FTSE4 Good Index series FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. FY 23 • CRISIL ESG rating – S

76. Slide 76: Risk Management

    Risk Management 74

77. Slide 77: 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

78. Slide 78: 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

79. Slide 79: 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

80. Slide 80: 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

81. Slide 81: Information Technology

    Information Technology 79

82. Slide 82: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all • Optimize deployment architecture and rollout of scalable • Open market rollout of direct to customer digital App with hybrid c

83. Slide 83: Contact us

    Contact us Cholamandalam Investment and Finance Company Limited (Chola), Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Our registered Chennai - 600032. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–4090 7172 http://www.cholamandalam.com Sujatha P-Exec

84. Slide 84: 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

85. Slide 85: Chola Crest, Guindy, Chennai contact details

    Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. | Tel.: 044 4090 7172 | Fax: 044 4090 6464 | Email : customercare@chola.murugappa.com | Website : www.cholamandalam.com

Cholamandalam Investment and Finance Company — H1 FY24 Earnings Presentation on 6ix