Aptus Value Housing Finance India Limited · NSE:APTUS
Aptus Value Housing Finance India — Q1 FY23 Earnings Presentation
35 slides from Aptus Value Housing Finance India's earnings presentation, June 2022
Slide 1: Investor Presentation | Q1 FY23
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Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”) which have been prepared by Aptus Value Housing Finance India Limited (the “Company”) have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscri
Slide 3: Background
Background Run by professional management team backed by strong Founder Promoter and marquee investors Y Presence in 211 locations in Commenced Operations in 2010 ; from Chennai, Tamilnadu Regulated by RBI and supervised by NHB < APTUS
Slide 4: Key Strengths
Key Strengths ‘ ‘ PN Leader in Attractive South Market ay Good Asset Quality A \ APTUS Industry Leading Profitability } © Presence in Large Underpenetrated Market WA Good Governance, Management and Alignment Q1 FY 23 Investor Presentation A netus
Slide 5: Snapshot - June 2022
Snapshot - June 2022 Assets under Management (AUM) Disbursement Gross Stage 3 (*) Rs. 5519 Cr Rs. 525 Cr 1.75 % Spread 9.17% 4113% Opex to Assets Profit After Tax 2.44% Rs. 119 Cr Return on Assets Return on Equity @ Yor @ ca 5 (*)—As perRBI circular dated 12 Nov 2021 8.88 % Consistently maintained 1
Slide 6: Diversified Loan Portfolio With Niche Customer Focus
Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio — Home Loans (HL) / Small Business Loans (SBL) HFC resis NBFC loans 4% Smail business loans (SBL) 100% Insurance loans 4% Quasi Home Loans Home 23% Loans 69% AUM - Rs. 4819 Cr AUM -Rs. 700 Cr Consolidated Small business loans 20%
Slide 7: 100% In-House Operations
100% In-House Operations Fully In-House Team... GB © 1,422+ 244+ Business Central origination Credit 213+ 395+ Legal & technical Collection QUF ...Leading to Desired Business Outcomes Pricing Power Reduced TAT Low Takeover neon Reduced Risk of Frauds & investor Presentation ~ APTUS ‘\
Slide 8: Robust Underwriting, Monitoring and Collections Process
Robust Underwriting, Monitoring and Collections Process [ 100% In-House | Leveraging [ Stringent Credit | | Sourcing Technology Underwriting Management System atl atl al ae Lead Generation Digital Onboarding Cash flow 15-24 months through and KYC assessment Monitoring early + Ref app, Cust app Pre &
Slide 9: Information & Technology: Key Enabler of Growth
Information & Technology : Key Enabler of Growth Lending Software Customer Relationship & Human Resources End-to-end software Service Human resources management solution Automated CRM and customer system application service requests Customer Onboarding Business Intelligence & Sales app, referral app
Slide 10: Scalable and Robust digital landscape
Scalable and Robust digital landscape ¥ Mobile App for customer on-boarding, Credit Verification, Technical Valuation, Collections & Customer Service v Easy ,Quick & Transparent process right from the field v Robotic Process Automation(RPA) to eliminate manual process v Electronic Payments v_ Time S
Slide 11: Risk & Data science backed Centralized underwriting
Risk & Data science backed Centralized underwriting Ain of Risk Management " * 25 + data points are collected for Customer Profile Analysis + Stage-wise disbursement through technical visits « Multiple touch points to ensure thorough verification in underwriting process Tech - Intervention + More th
Slide 12: Digital Adoption
Digital Adoption Service requests raised on app Unique Users Making payments Via Apps 2188 — “a2 FY 2021- Q3FY2021- Q4FY 2021. Q1 FY 2022- asag 00 bia. es i i | Q1FY ar FY Q3 FY Q4 FY Qi FY 2021-2022 2021-2022 2021-2022 2021-2022 2022-2023 2022 2022 2022 2023 No of Payments Via eee App logins 7325 8
Slide 13: Scalability
Scalability Tamil Nadu 1.8x GDP Growth ) India average: 436 13% “ ® ¢ Andhra Telangana Karnataka Pradesh 1.1x 1.5x 1.5x 9% 8% 7% No of branches % of AUM as on Q1 FY 23 | FY 22 | FY 21 | FY 20 TamilNadu 47% | 48% 52%| 56% AndhraPradesh 74 32% | 31% 28% 25% |Telangana 32 13% | 12% 10%| 10% Karnataka 2
Slide 14: Scalable Operating Model
Scalable Operating Model CAGR - 30% 2 (5 Years) 2 g es 8 3 85 5519 gS 8 5183 z 3 rs 2 2” 3 6g = = 3 € 5) ° € 2 3183 2s + 3 s m s ao a 2247 , : , s , * sm ° se es 2 ¢ = é i g 5 5 1414 eS o ne B x id 2 £ 5 = = 846 S § J = of £ 3 i 519__ 0 29 ase 2010 2011 +2012 2013 2014 © 2015 2016 2017 «2018 += 2019
Slide 15: Resilient Model Across Economic Cycles
Resilient Model Across Economic Cycles GST Implementation FY 18 AUM growth 66% Yield 17% GNPA 0.5% ROA 6.0% #-— As per RBI circular dated 12 Nov 2021 *—Annualised NBFC Liquidity Crisis FY 20 41% 18% 0.7% 7.8% Covid-19 (first wave) FY 21 28% 17% 0.7% TAY Covid-19 (Second wave) FY 22 27% 17% 1.19%(#)
Slide 16: Strong ESG Focus
Strong ESG Focus 72a Focus on financial =] inclusion 76% LIG 71% Self-employed 40% New to Credit Improving Living Standards Strong Corporate Governance Employment in rural / semi-urban areas Support to borrowers NIL Material Civil litigation Diversified Experience of Board Members across academic an
Slide 17: Performance Highlights (Quarterly)
Performance Highlights (Quarterly) AUM (Rs. Cr) Disbursement(Rs. Cr) Spread(%) 5519 525 9.15% 9.17% cis, 8.89% " ‘ 5183 4805 \ Q3 FY 22 Q4 FY 22 Q1 FY 23 Q3 FY 22 Q4 FY 22 Qt FY 23 Q3 FY 22 Q4 FY 22 Qi FY 23 Gross NPA(%) PAT (Rs. Cr) ROA (%) 8.88% 1.75% (") 1.53% (*) aig 7.82% 8.00% 1.19% (") 410 Q3
Slide 18: Performance Highlights (Year on Year)
Performance Highlights (Year on Year) AUM a. Cr) Disbursement (Rs. Cr) Spread (%) 5519 ii 9.17% , 9.03% 30% 247 113% (| | Jun 2021 Jun 2022 Qi FY 22 Qt FY 23 QIFY 22 Qi FY 23 Gross NPA (%) PAT (Rs. Cr) ROA (%) 1.75% (") 8.88% a 119 7.30% airy 22 airy 23 Q1FY 22 QI FY 23 RT: atevn (*) NPA as per RBI
Slide 19: Consistent NIMs
Consistent NIMs Yields/Cost of Borrowings (%) 17.30% 17.20% 17.03% 46.89% 16.85% 16.99% 16.95% 16.89% 16.89% 16.85% y -— a + + + - + 9.80% 9.80% 8.43% 7.74% 7.68% 726% 126% 7.60% FY19 FY20 FY 24 FY 22 Q1FY 23 JUN 21 SEP 21 MAR 22__ JUN 22 Spread (%) 9.15% 9.17% 8.60% . : 9.17% 5 : 7.50% 7.40% I | 9.
Slide 20: Opex and ROA
Opex and ROA Opex (%) 3.80% 3.40% 2.78% 2.74% 2.78% . 2.53% 2.44% 261% 2.53% | 2.44% FY 19 FY 20 FY 21 FY 22 Q1 FY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022 = June 2022 ROA (%) 8.88% 8.88% 9 7 8.00% pat sb, 7.43% 7.62% 7.01% “es 6.10% FY 19 FY 20 FY 21 FY 22 QUiFY 23 Jun 2021 Sep 2021 Dec 2021 Mar 2022
Slide 21: Asset Quality
Asset Quality Gross NPA (%) Net NPA (%) PCR=53% 1.32% %(") : 1.75% 1.16% 1.53%(*) 9) 0.87% 1.07% 1.19% 0.84% | 0.81% | | 0.60% | Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 (*) NPA as per RBI circular dated 12 Nov 2027 Collection efficiency (%) 30 + DPD
Slide 22: Provision for Contingencies (ECL)
Provision for Contingencies (ECL) Rs. Lakhs Aptus Particulars Consolidated 30-Jun-22 31-Mar-22 30-Sep-21 31-Mar-21 | Gross Stage 3 | 9654.17 | 6,183.67 3,623.42 | 2,717.11 | % portfolio in Stage 3 1.75% | 1.19% | 0.81% | 0.67% ECL Provision Stage 3 2,413.54 1,545.92 911.65 1,178.23 | Net Stage 3 7,2
Slide 23: Robust Funding Management and Credit Profile
Robust Funding Management and Credit Profile Diversified and Balanced Funding Mix No Exposure Others, 6% to Short term loan incl CPs NCDs, 14% Banks, 52% NHB, 28% Ava, tenureot aE a borrowings(months) * Others represents Securitisation * Credit Rating (ICRA)— Upgraded to AA-from A+ * Credit Rating(C
Slide 24: Asset Liability Management
tor Position as on 30 June 2022 (Rs.Cr) <3 months 3-6 months 6m to 1 year 1 to 3 years 3 to 5 years 5 to 7 years 7 to 10 years >10 years ‘(LM Surplus la Outflows @ Inflows lor Presentation Surplus 572 173 21 955 1384 1487 1266 291 ~~ APTUS
Slide 25: Fixed Vs Floating (Assets Vs. Liabilities)
tor P. ntatior Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (2 Cr) As on Jun-22 Borrowings - Fixed Vs. Floating 5519 | 5519 60% 61% 62% 1756 oe (34%) 45% 4250 40% 39% 7 (77%) ae Loan Assets Borrowings/Equity Sep-21 Dec-21 Mar-22 Jun-22 wEquity mFixed «Floating —Fixed% ——Floati
Slide 26: Comfortable liquidity position/Capital Adequacy
Comfortable liquidity position/Capital Adequacy Rs. Crores A. Liquidity Particulars As on 30 June 2022 |Q2 FY 23 Q3 FY 23 Cash and Cash Equivalents 573 Opening Liquidity Add:Undrawn Sanctions 575 Add: Principal repayments and surplus from operations Less: Debt repayments 176 185 Closing Liquidity 1,
Slide 27: Key Growth Strategies
Key Growth Strategies Continued Focus on Existing Segment Reduce Cost of Borrowings Ticket Size in INR 0.5 — 1.5mn range Large headroom in new to credit, retail segment Maintain different templates of customer profiles to increase business while managing risks Contiguous expansion and increasing pen
Slide 28: Experienced and Well Diversified Board
Experienced and Well Diversified Board CMD WestBridge Non-Executive Nominee Directors “ W 4 q M. Anandan Sumir Chadha KP Balaraj Chairman & Managing Director Nominee Director - WestBridge Nominee Director - WestBridge Non-Executive Independent Directors S. Krishnamurthy K. M. Mohandass Krishnamurthy
Slide 29: Stable Management Since Inception
Stable Management Since Inception Balaji P ED & CFO Several years of experience in finance, treasury, banking, fund raising C.T. Manoharan Executive Vice President - Business Development Rich experience in housing finance industry across sales, channel and distribution management V.Krishnaswami Vice
Slide 30: Diversified Shareholding
tation “DiversifiedShareholding Shareholding Pattern as on 30 Jun 2022 Others 5.71% Dil 2.83% Investor Promoter — WestBridge 37.27% Fl 29.12% Founder Promoter — M.Anandan 25.07% Top Institutional Shareholders as on 30 Jun 2022 Investor Details % of holding Key Investors Malabar Group 8.48) Steadview
Slide 31: Annexures
Annexures ae
Slide 32: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss(*) Rs. Crores Particulars Qt FY 23 Q4 FY 22 Qt FY 22 FY 22 QIFY 23 over Q1 FY 23 over Q4 FY 22 Q1FY 22 Interest income on loans 233.00 247.26 178.81 791.67 7% 30% Processing fees and other income 15.76 17.09 7.29 | 48.55 Interest expense 54.26 49,22 55.50 |
Slide 33: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities(*) Rs. Crores Sources of Funds Share capital 99.38 99.38 Reserves & Surplus 2,935.63 2,816.78 Borrowings 2938.96 2,720.63 Other liabilities and provisions 52.29 47.25 Application of Funds Loan Assets 5402.72 5,078.75 Fixed Assets 4.85 4.01 Liquid Asse
Slide 34: RoA Tree
RoA Tree Particulars Q1 FY 23 FY 22 | Revenue from operations/Avg Loan book 17.71% 17.51% | Other Income/Avg loan book 0.63% 0.67% Total Revenue/Avg loan book 18.34% 18.17% | Finance cost/Avg loan book 4.06% 4.51% NIM/Avg loan book 14.28% 13.66% | Operating expenses/Avg loan book 2.44% 2.53% | ECL P
Slide 35: Thank You
Thank You ae
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