Iifl Finance Limited · NSE:IIFL
Iifl Finance — Q3 FY2022 Earnings Presentation
46 slides from Iifl Finance's earnings presentation, Jan 28, 2022
Slide 1: Cover letter: revised presentation on unaudited results
January 28, 2022 The Manager, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Tower, Exchange Plaza, 5 Floor, Plot C/1, G Block, Dalal Street, Bandra - Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai 400 051. BSE Scrip
Slide 2: Performance review Q3FY22
€311FL FINANCE Performance review Quarter ended December 31, 2021 (Q3FY22) Bloomberg; IIFLIN IIFL Finance Limited January 27, 2022
Slide 3: Agenda
trategy & key high ii. Financial performance €311F L FINANCE ji. Asset quality = ji. Asset quality = ua iv. Liquidity position Il. Business s its review Ill. Digital sformation initiatives IV. Corporate and others
Slide 4: Key highlights of quarterly results (9M and Q3FY22)
Key highlights of quarterly results (9M and Q3FY22) CFL FINANCE Profit growth momentum- 9MFY22 up 69% y-o-y; Q3FY22 up 15% y-o-y . Net profit grew 69% y-o-y in 9MFY22 (9 months) to 867 Cr. The quarterly net profit was Loan AUM: 46,780 Cr %310 Cr, up 15% y-o-y and 6% q-o-q ROE?: 20.7% Liquidity comfo
Slide 5: 92% of loan assets are small ticket retail
Our 92% of loan assets are small ticket retail, backed by mortgages, gold or cash-flow to customers under-served by banks A Home Loan Loan AUM %16,495 (35%) Financing affordable homes in small towns and metro suburbs, to self employed/ informal sector employees; Avg loan value ~%17 lakhs Gold Loan L
Slide 6: Our 'right to win' in retail lending
Our ‘right to win’ in retail lending is built on distribution, EFL FINANCE digital technology, strong brand and balance sheet .. Retail Lending Diversified but focused on strong collateral or cash flow backed loans, in segments with robust growth potential. Distribution Strength Technology Edge Bank
Slide 7: Our loans are predominantly retail and granular
Our loans are predominantly retail and granular JFL FINANCE Loan AUM (®C iversified portfolio mitigates risk of asset concentration and cyclical gyration 16,176 15% Capital Markets 9% Microfinance 11% > 21% Business Loan aks FY15 FY17 FY19 FY20 Fy21 ‘ Q3FY22 Home Loans 35% 16,495 23% 5% 10.1% 16.8 G
Slide 8: Quarterly profits up 15% yoy
Quarterly Profits (Consolidated) up 15% yoy, driven by €2311FL FINANCE income growth of 16% =Cr Q3FY22 Q3FY21 Y-0-Y Q2FY22 Q-0-Q Interest income 1,412.0 1,184.5 19% 1,342.3 5% Interest expense (772.8) (611.3) 26% (744.1) 4% Net interest income 639.2 573.2 12% 598.2 7% Income from assigned assets 310
Slide 9: 9M FY22 profits up 69% yoy
9M FY22 Profits (Consolidated) up 69% yoy, driven by income €2311FL FINANCE growth of 20% =Cr QOMFY22 QMFY21 Y-0-Y FY21 Interest income 3,999.3 3,454.8 16% 4,719.2 Interest expense (2,217.8) (1,927.7) 15% (2,608.3) Net interest income 1,781.5 1,527.1 17% 2,110.9 Income from assigned assets 816.6 612
Slide 10: Quarterly income analysis
Quarterly income analysis- Non fund income at 38%, more than 90% of operating costs =Cr Loan book using risk capital Securitized book Loan Book (Ind AS Balance sheet) Assigned assets Assets under management =Cr Interest income Interest expense Nil at Ind AS balance sheet loan book (A) Income from as
Slide 11: IIFL Finance Consolidated Balance sheet
lIFL Finance — Consolidated Balance sheet Unaudited as at December 31, 2021 (NBFC, HFC and MFI) JFL FINANCE ASSETS zCr LIABILITIES AND EQUITY €Cr (a) Cash and Bank Balances 5,735 (a) Payables (b) Receivables 223 (b) Borrowings (c) Loan Assets 33,397 - NCDs 10,622 (d) Investments 1,083 - Others 23,04
Slide 12: IIFL Finance Key Ratios
lIFL Finance — Key Ratios IIFL FINANCE Particulars Q3FY22 Q3FY21 Q2FY22 QMFY22 QMFY21 NIM on Balance Sheet Assets 7.3% 74% 7.0% 6.9% 6.9% NIM on Assigned Assets 6.3% 6.0% 6.6% 6.6% 6.4% Cost-to-income 39.3% 33.1% 40.0% 39.1% 36.4% Core PPOP/ Average AUM 5.2% 5.3% 5.0% 4.9% 4.7% Provisions/ Core PPOP
Slide 13: Consistent financial performance and growth over the years
Consistent financial performance and growth over the years ©SIIFL FINANCE Loan AUM (& Cr) Profit after tax (PAT) (® Cr) Nine monthl: gment CAGR 20% __ > onthly - 46,780 Annual 72 761 423 465 503 22,281 — 43,293 18,094 FYL7 FY18 FY19 FY20 FY21 9MFY22 FY17 FY18 FY19 FY20 FY21 oMFY22 Net interest margi
Slide 14: Robust and improving financial position
Robust and improving financial position ©SIIFL FINANCE Return on assets (%) Nine monthly Return on equity (%) — Nine monthly Annualized Annualized Annual 2.8% Annual 2.0% 2.2% 2.0% 20.3% 17.9% 1.6% 1.5% 15.2% 15.3% 13.3% 11.3% FY17 FY18 FY19 FY20 FY21 9MFY22 FY17 FY18 FY19 FY20 FY21 — 9MFY22 Capital
Slide 15: 6,462 5,682 1,780 4,909 5,025 5,115 1,596 1,591 3,718 1,318 863 987 970 1,858
6,462 5,682 1,780 4,909 5,025 5,115 1,596 1,591 3,718 1,318 863 987 970 1,858 1,628 663 1,272 515 503 526 1,073 358 563 236
Slide 16: Superior asset quality maintained through cycles
Superior asset quality maintained through cycles 1.76% FY17 FY18 FY19 FY20 FY21 Gross NPA (%) 2.79% L7ay% 2.04% 1.98% | 234% 1.62% i Q2FY22 Q3FY22 0.52% FY17 FY18 FY19 FY20 FY21 Net NPA (%) 0.58% 9.49% E211 L FINANCE Collection Efficiency trends! (%) — moratorium period from Mar-Aug 2020 Gold Loan H
Slide 17: Asset quality across core segments amongst best in industry
Asset quality across core segments amongst best in the industry CORE GROWTH SEGMENTS Home loans GNPA 9 15% 1.8% 1.8% 0.7% 0.7% 98% FY17 FY18 FY19 FY20 FY21 Q2FY22 Q3FY22 Business loans GNPA | | o) 5.7% 6.1% 6.6% | 3.7% | if 2.5% 9 | 1.7% 2.2% | FY17) =FY18 = FY19 =FY20 FY21 perez qsrz Note: Gold loa
Slide 18: Conservative provisioning across all segments
Conservative provisioning across all segments JIFL FINANCE As at December 31, 2021 (NBFC, HFC and MFI) &Cr Stagel Stage2 Stage3 Stagel Stage2 Stage3 Provision Business loan book Total A 0-30 dpd 31-90dpd 90+ dpd Provision % aga ‘As per ECL Home Loans 10,324.3 425.6 194.1 10,944.0 1.4% 7.2% 39.0% 114
Slide 19: Restructuring & ECL Provision Movement
Restructuring & ECL Provision Movement As at December 31, 2021 (NBFC, HFC and MFI) ECL Provision Movement: Opening Business Provision (A) Home Loans 242.2 Business Loans 410.4 Gold Loans 92.3 Microfinance 257.4 Capital Market Finance 20.5 Construction & Real Estate / Others 324.2 Total 1,347.0 Restr
Slide 20: Mar 16 Mar 17 Mar 18
₹ ₹ Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Dec 21
Slide 21: Structural Liquidity - Surplus across all buckets
Structural Liquidity- Surplus across all buckets €SIIFL Finance = Cr Surplus/ (Deficit) as a % of outflow (cumulative) 14,988 gure? : 5,116 . : : 9,425 | 3228 4,885 Gees : Pra days 1 month ' 2 months * 3 months © 6 months lyear ' Byears Syears = All This ALM chart shows structural liquidity at conso
Slide 22: Debt repayment obligation schedule, well covered
Debt repayment obligation schedule, well covered IFL FINANCE @Cr 10,756 Cash + undrawn lines = 9,145 Cr 9,485 Cash & Cash equivalents as on 6,232 9,046 December 31, 2021 " Earmarked cash & cash equivalents (2,248) 8,355 Free cash & cash equivalents 3,984 " Liquid investments / Unutilised CC (+) 1,69
Slide 23: Debt resource raising trend
Debt resource raising trend Term Loan =Bonds 3,987 3,889 1,402 3,062 2,981 425 Q2FY21 Q3FY21 Q4FY21 E211 L FINANCE Refinance &Cr 4,299 3,717 2,799 2,296 QLFY22 Q2FY22 Q3FY22 CRISIL long term rating at AA (Stable) CRISIL maintains rating at AA (Stable) for IIFL Finance Ltd as well as IIFL Home Financ
Slide 24: Business segments review
€311F L FINANCE Il. 9MFY22 & Q3FY22 Consolidated perfor ce overview Il. Business segments review Gold Loa’ iv. Microfinance v. Construction & Real Estate and Capital Markets Ill. Digital transformation initiative IV. Corporate and others 23
Slide 25: Home loans — product overview
Home loans — product overview v_ Primary focus on affordable and non-metro customers. 86% of outstanding home loans were to customers under PSL category. ¥ Target segment is salaried and self -employed profile with focus is on first time home buyers. vy Business strategy aligned with government miss
Slide 26: Home loans - financial overview
Home loans - financial overview E23 1FL FINANCE Asset Under Management (8 in Cr) Portfolio Yield (%) =Salaried = Self Employed 10.3% 5,300 8,579 12,197 12,443 14,439 | «16,495 ; 10.3% | 10.1% | 10.1% ' 9.8% ' ' 9.6% ' poe 52% 46% 1 1 eek 39% | 38% ' FY17 FY18 FY19 FY20 FY21 ‘ Q3FY22 FY17 FY18 FY19 F
Slide 27: Business loans — product overview
Business loans — product overview v For business loans backed by cash flows yv Focus on balancing prudent credit underwriting with instant in-principle decision and automated disbursements based on analytical scorecards v Partnerships with leading fintech lenders focusing on both business and person
Slide 28: Business loans — financial overview
Business loans -— financial overview E211 L FINANCE + i i fy Asset Under Management (@ in Cr) Portfolio Yield (%) 8,117 i i 7,361 7,805 7464! ' " | 7,014 16.1% H 6,000 ' 15.6% 15.6% | 15.6% ' 14.9% ' ' 14.0% ' FYLT FY18 FY19 FY20 Fy21. | Q3FY22 FY17 FY18 FY19 FY20 FY21. | Q3FY22 Onboarding Average T
Slide 29: Gold loans — product and financial overview
Gold loans — product and financial overview v__Branches in more than 1,170 towns/ cities v Loan against gold ornaments for personal & business use with on-boarding LTV ~73% v_ In-house loan origination tablet application Distribution of AUM as at December 31, 2021 (% Cr) equipped to screen customers
Slide 30: Gold loans — financial overview
Gold loans — financial overview E211 L FINANCE + i i fy Asset Under Management (@ in Cr) Portfolio Yield (%) | 14,606 13,149 | 18.8% , ' ' " 17.8% 18.1% 19.0% 18.0% | ax 9,125 : : “ 6,195 4,037 H H 2,910 : : FY17 FY18 FY19 FY20 FY21 | Q3FY22 FY17 FY18 FY19 FY20 FY21. | Q3FY22 Onboarding Average Tick
Slide 31: Microfinance — product overview
Microfinance — product overview v Small-ticket loans for purpose of income generation activities v Target segment is rural and semi-urban self- employed women in joint liability groups v_ Strong emphasis on training and awareness of all customers detailing end use of funds, timely repayment and emph
Slide 32: Microfinance loans — financial overview
Microfinance loans — financial overview E211 L FINANCE + i i fy Asset Under Management (@ in Cr) Portfolio Yield (%) | 5,178 ' 4738 | 25.4% ' ' 24.8% ' 3,400 : ' ' 23.4% ' 2,286 ' 22.6% H : 22.3% : 22.0% 840 ' ~ | | [] FY17 FY18 FY19 FY20 FY21 | Q3FY22 FY17 FY18 FY19 FY20 FY21. | Q3FY22 Onboarding A
Slide 33: CRE & Capital Market
CRE & Capital Market Strategy for non-core synergistic businesses Construction and Real Estate (CRE) + The erstwhile CRE business of IIFL Finance, high risk high reward funding of early stage CRE projects against collaterals of land and LOl(Letter of Intent) in case of SRA (Slum Rehabilitation Autho
Slide 34: €311F L FINANCE
€311F L FINANCE 33
Slide 35: Gold loan home delivered traction picking up
Gold loan home delivered traction picking up.. JIFL FINANCE Loan Journey 1. 2. + Gold loan at customer's doorstep initiative targets branchless expansion of Gold Loan > business. . ae Customer applies Executive visits The initiative started a year ago, saw for Gold Loan via customer's doorstep signi
Slide 36: Our Digital DIY channels
Our Digital DIY channels.. € 311 FL FINANCE sali Digital DIY Disbursements (% Cr) My Money app and website: a. 100% online loan application process. b. Loans ranging from = 50,000 to %10 113.6 lakhs for Business Loans and from % 5,000 to 22 lakhs for Personal Loans WhatsApp loans: a. Ease of chat ha
Slide 37: €311F L FINANCE
€311F L FINANCE 36
Slide 38: Distinguished Board of Directors
Distinguished Board of Directors IIFL Finance - Board of Directors E211 L FINANCE Nirmal Jain Chairman & Whole-time Director MBA, lIM Ahmedabad; — Rank holder CA & Cost accountant Founded and led IIFL since 1995 Worked with Unilever for 5 years A K Purwar Independent Director Chairman of Tadas Wind
Slide 39: Experienced senior management team
Experienced senior management team IIFL Finance Rajesh Rajak Chief Financial Officer Chartered Accountant SVP- heading Business Finance function with HDFC Bank Ltd for 14 years. Sanjeev Srivastava Chief Risk Officer = Chartered Accountant Over 20 years of experience in financial services Sneha Patwa
Slide 40: Recent partnerships with banks for co-lending
Our recent partnerships with banks for co-lending, CFL FINANCE co-origination and business correspondence.. do inion Bani Standard Qe BDBS “29S” SAK ces > a S <> a Gold Loan Home Loan Gold Loan Gold Loan Business Loan DCB BANK punjabsnational bank Aicics Bank cz> A a ey a ey Gold Loan Home Loan Home
Slide 41: ESG: Supporting a sustainable economy through focus on environment
ESG: Supporting a sustainable economy through focus on environment.. Adopting Reduced the paper consumption by 3.9 tons in FY21 by digitalizing and automating processes for loan application (approximately 0.78 million sheets of paper). water purifier for use in toilets and urinals. During FY21, we r
Slide 42: ESG: Promoting financial inclusion
ESG: Promoting financial inclusion As at December 31, 2021 IIFL is firmly committed to support ec ic activity and financial inclusi €3IIFL FINANCE offerings while adapting to changes in the external environm = 62% of gold loan are of less than = 50,000 value = 63% of loans given to small businesses
Slide 43: ESG: CSR projects continue amid covid
ESG: CSR projects continue amid covid with creative use of CFL FINANCE technology Seva Kutirs (Madhya Pradesh) Because of COVID-19 pandemic government schools remained shut which led to interruption in Mid-Day Meal programme. IIFL Foundation supported provision for nutritional and healthy meals, bot
Slide 44: ESG: Governance - conducting our business with integrity
ESG: Governance - conducting our business with integrity €SIIFL FINANCE Establishing vision, mission and values and determini iewing the goals and polici the Company from time to time Promote sound corporate governance practices, ethical standards, and compliance with the laws of the land. Disclose
Slide 45: IIFL's brand and credibility recognized at various forums
IIFL’s brand and credibility recognized at various forums IIFL Finance received ‘The Most Preferred Brand’ Award 2021 for Sustained Brilliance in Brand Building at Marksmen Daily Awards €3IIFL FINANCE IIFL Finance received ‘The Economic Times Iconic Brand Award 2021’ FL Foundation was recognized as
Slide 46: Thank you
Thank you Published in January 2022 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxa