Au Small Finance Bank Limited · NSE:AUBANK
Au Small Finance Bank — Q3 FY18 Earnings Presentation
39 slides from Au Small Finance Bank's earnings presentation, Jan 31, 2018
Slide 1: Investor Presentation Q3 FY18
AU SMALL Investor FINANCE | Bani Presentation del Sel ad A SCHEDULED BANK | FORTUNE INDIA 500 COMPANY Q3 FY 18 Retail Focused | Differentiated | Well Capitalized | Fast Growing 1! Customer Centric January 31, 2018
Slide 2: Table of Contents
Table of Contents AU Q3/ 9MFY18 Performance Summary AU Retail Bank, Wholesale Bank Snapshot au Liabilities & Treasury Snapshot AU About AU Small Finance Bank AU Summary Financials & Shareholding Pattern AU SMALL FINANCE BANK
Slide 3: Select P&L Highlights in INR Crore
Select P&L Highlights In INR Crore Total Income Net Interest Income PPOP Profit After Tax’ Q3 om Q3 9M Q3 om Q3 om Q3 / 9MFY18 570 1489 250 654 153. 421 79 209 ILE me ft mh Bm. et ft Be JZ. Y-o-Y Comparison Select Business Highlights ImINR Crore Gross AUM 9M FY18 Disbursements? Deposits? Net Worth A
Slide 4: Q3 / 9MFY18 Performance Summary
Q3 / 9MFY18 Performance Summary ADVANCES & ASSET QUALITY Maintained robust loan growth; Gross AUM at Rs. 13,400+ crore, Up “38% y-o-y Continued focus on Retail Assets with lion’s share of more than ~82% at Rs. 11,000+ crore. 2nd continued quarter of disbursals of more than Rs. 2,500 crores; ~35,000
Slide 5: Liabilities, Branch Banking & Cross-Sell
LIABILITIES, BRANCH BANKING & CROSS-SELL = Leveraging AU distribution strength; ramping up cross sell of insurance & mutual funds = GI Partner—Cholamandalam; Premium Collected Rs. 7 Crore; 23,071 policies Q3 / 9MFY18 = HI Partner — Aditya Birla — Premium Collected Rs. 1 Crore, 1091 policies (started
Slide 6: Q3 / 9MFY18 Performance Summary
Q3 / 9MFY18 Performance Summary FINANCIAS, CAPITAL ADEQUACY & RETURN RATIOs =" Average AUM IRR of 15.3%; Average Cost of Funds of 8.6% = Net Interest Income of Rs. 250 crore for Q3FY18 and Rs. 654 crore in 9MFY18; Up 25% over Q3FY17 and 16% over 9MFY17 respectively = Total Income of Rs. 570 crore (U
Slide 7: Steadily Improving ROA & ROE despite bank transition
Steadily Improving ROA & ROE despite bank transition Q3FY18 ROA and ROE marginally better than Q2FY18, despite higher Opex on account of Bank transi ; Di ii ROA / ROE components RoA? (%) RoE? (%) 1 33 % 3.2% raay 228% 13.1% Q3FY17 9MFY17 Q2rv1g Q3FY18 9MFY18 Q3FY17 9MFY17 Q2FY18 Q3FY18 9MFY18 TEE RO
Slide 8: Improved Asset Quality
Improved Asset Quality Opening Gross NPA 266 217 Additions during the period 68 84 Reductions during the period 48 35 Gross NPAt Net NPA Provision Coverage Ratio ' H ' ! 2.1% 1 32.8% ' ' H 3.1% 19% Hl 30.8% H ' ' ' 2.8% H ! ! Dec-16 ' Sept-17 Dec-17 Dec-16 ' Sept-17 Dec-17 Dec-16 ' + to 7 : ; ' - H
Slide 9: Well Capitalized; Adequate levels of CRAR
Well Capitalized; Adequate levels of CRA (All Figures in INR Crore) eS 8 Total Risk Weighted Assets 9,374 8,380° 6,704 Tier | Capital 1,874 1,884 1,634 Tier II Capital 91 85 150 Total Capital 1,965 1,969 1,784 Tier | CRAR 20.0% 22.5%" 24.4% Tier Il CRAR 1.0% 1.0%® 2.2% Note : CRAR and Tier 1 Capital
Slide 10: Key Performance Matrix
Key Performance Matrix Active Loan Accounts Gross AUM! wwacrore Disbursements inrcrore ' 1 | 303,756 H i 253,346 ' 1 12,134 H 2,520 H 9,749 H H 1 1 1,230 | i H Dec-16 1 Sept-17 Dec-17 Dec-16 H Q3 FY17 | qarvis aris Hl ' r ~ ' H i ' i } ! : As NBFC H | ASNBFC ' | AsaBank } u 1 i H © Asset Centers Bra
Slide 11: Profit & Loss Statement
Profit & Loss Statement JAllFiguresinINR Crore) | rv18 | Q3rvi7_| Y-o-¥| omFYi8 | 9MFYI7_| Y-o-¥| a2Fyi8 | FYI7__ || pt raucited [Unaudited |__| Unaudited | Unaudited |__| Unaudited | Audited _|| Income Interest Earned 464 326 42% 1,235 942 31% 410 1,287 Interest Expended 214 125 70% 582 378 = 54% 1
Slide 12: Balance Sheet
Balance Sheet Tt raudited | Unaudited | | Unaudited | Audited | Liabilities Capital 286 274 4% 284 284 Reserves and Surplus 1,908 1,501 27% 1,828 1,703 Deposits 3,716 - NA. 1,978 - Borrowings 7 — 4,391 67% 7 — 7 — all Lisi and Provisions 489 89% Ee TET ET a Cash and Balances with R B | 346 9 NA. 313
Slide 13: New Directors on Bank's Board — Brief Profile
New Directors on Bank’s Board — Brief Profile Mr. Raj Vikash Verma — Independent Director Masters in Economics (Delhi School of Economics), MBA Finance (FMS), CAIIB = He has 35 years of rich experience of several facets of Housing, Mortgages & Financial regulations = He has held several Chairman / C
Slide 14: Way Forward
Way Forward O Retail, Wholesale Bank — Diversify Products Mix Continue to be retail assets led bank Scale up the recently launched Housing / Home loans alongside other retail assets viz. Gold Loans, Consumer Durable Loans, Agri-allied loans. Scale up business banking within Wholesale Bank ®) 7 Lever
Slide 15: SMALL
AU SMALL FINANCE BANK AU Q3/ 9MFY18 Performance Summary AU Retail Bank, Wholesale Bank Snapshot @ Liabilities & Treasury Snapshot AU About AU Small Finance Bank AU Summary Financials & Shareholding Pattern ad
Slide 16: Retail & Wholesale Bank Snapshot - I
Retail & Wholesale Bank Snapshot — | Retail Bank Assets comprise ~82% of Gross AUM Retail Bank AUM continue to exhibit strong growth of Rs. 13,415 Crore 12,134 Ses INR Crore lesale 6 Dec-16 Sept-17 Dec-17 H Total © Retail Bank! Il Wholesale Bank’ m Retail bank ™ Wholesale bank Reduction in Yields du
Slide 17: Retail & Wholesale Bank Snapshot - II
Retail & Wholesale Bank Snapshot - II Consistent growth in Disbursements 110.4% INR Crore Q3FY17 Q2FY18 Q3FY18 H Total © Retail Bank! Il Wholesale Bank’ # Active Customers Loan Accounts Average Ticket Size (in Rs. Cr) Disbursement IRRs 326,947 0.08 16.84% 1 H Dec-16 Sept-17 Dec-17 Q3Fv17 Q2Fv18 Q3ry
Slide 18: Retail Bank Snapshot - I
Retail Bank Snapshot — | Retail Assets AUM Mix by Products — Wheels, MSME, SME and GL+CD+Agri SME INR Crore SBL— SME Dec-16 Sep-17 Dec-17 MiWheels |) SBL-MSME Ml SBL-SME HM GL+CD+AgriSME ™™ Total Total Mi GL+CD+AgriSME Ml SBL-SME | SBL-MSME fi Wheels Average IRR Range Improving Asset Quality of Reta
Slide 19: Retail Bank Snapshot - II
Retail Bank Snapshot - II Disbursement Momentum maintained in Retail Assets INR Crore Q3FY17 Q2FY18 Q3FY18 MTotal HM GL+CD+AgriSME Mi SBL-SME —— SBL-MSME fl Wheels Retail Assets Regional Break-up m@ Rajasthan asm + Agri-SME 2 saL SME 0% SBL-MSME 100% 0% 1% 0% 20% 40% 60% 80% 100% MUptoRs.1Cr MRs.1Cr
Slide 20: Diversified Wheels Book
Diversified Wheels Book Wheels AUM break up — New vs Old Wheels break up — Vehicle types 5 = New © Used/Re-finance = Trade Advance = Cars = Multi-Utility Vehicle = Small Commercial Vehcile © Sports Utility Vehicle Light Commercial Vehcile Tractor = Heavy Commercial Vehcile = Three Wheeler = Construc
Slide 21: Wholesale Bank Snapshot
Wholesale Bank Snapshot Wholesale Bank Assets AUM Break-up Good Momentum in Business Banking; NBFC book growth intact INR Crore AUM Growth Q-0-Q Overall Wholesale Bank NBFC Dec-16 Sep-17 Dec-17 MNBFC RealEstate Group © Business Banking @rotal Business Banking Mi NBFC [fl Real Estate Group Ticket Siz
Slide 22: SMALL
AU SMALL FINANCE BANK AU Q3 /9M FY18 Performance Summary ) Retail Bank, Wholesale Bank Snapshot aU Liabilities & Treasury Snapshot AU About AU Small Finance Bank AU Summary Financials & Shareholding Pattern |
Slide 23: Well entrenched distribution franchise Branches & Asset Centers
Well entrenched distribution franchise 306 Branches & 105 Asset Centers 10,666 employees 3,46,683 Active Loan Accounts 3,41,712 CASA 11 States ‘Accounts 37% CASA Ratio | ! ep Penetration into Core States and Expansi Growth Geographies 50% of our branches Rajasthan are in Rural & Semi Gujarat 4 5 Mad
Slide 24: Liabilities, Branch Banking, Cross Sell - Snapshot
Liabilities, Branch Banking, Cross Sell - Snapshot Growing Deposit F: e (value), CASA Ratio of 38% H ' : . 3,716 H 4 = Current Account & Saving Account ® Term Deposits ™ Total ’ ' Q One Hl in ' CASA RATIO (%) ' ' ' ' f ' ' CASA RATIO (%) ' CASA RATIO (%) H 1 ' 1,978 = Hl ' H ' E ' 88% ' f : ‘ H ' :
Slide 25: Diversified Liabilities Portfolio
Diversified Liabilities Portfolio Increasing proportion of Deposits further diversifying the funding profile aD eg All figures in INR Cr 1.4% m@ Money Market / CBLO / Line of Credit / Others @ Deposits Los ‘ Tier II Capital 5.4% W Loans from Banks & NBFC CPs SOG 16.2% oe, ~ 33.7% © Refinance from Fl
Slide 26: Declining Cost of Funds & Treasury Updates
Declining Cost of Funds & Treasury Updates Mm Increme SSS ntal aS SS Avg. Cost of funds Funds —— Cost of Increme ntal BRK 8.6% Funds Qiryis: H1FY18 9MFY18 Dec 31, 2016 Mar 31, 2017 Sep 30, 2017 Dec 31, 2017 Treasury Update = Incremental Cost of Funds since conversion into Bank (Apr 19, 2017) at 6.77
Slide 27: About AU Small Finance Bank
@ Q3 / 9M FY18 Summary Performance AU Retail Bank, Wholesale Bank Snapshot AU Liabilities & Treasury Snapshot AU ut AU Small Finance Bank @ Summary Financials & Shareholding Pattern AU SMALL FINANCE BANK no
Slide 28: AU Bank - Retail Focused, Fast Growing, Well Capitalized, Differentiated, Customer Centric Bank
AU Bank - Retail Focused, Fast Growing, Well Capitalized, Differentiated, Customer Centric Bank Prominently retail focused bank, primarily serving low & middle income individuals and businesses that have limited or no access to formal banking and finance channels © 82% of our AUM of Rs. 13,415 crore
Slide 29: Key Milestones | Our Journey
Key Milestones | Our Journey Commenced operations in 1996 with vehicle finance (Wheels segment) Commercial associate of HDFC Bank since 2003 Commenced operations in Maharashtra Obtained investments from IBEF and INEF | (Motilal Oswal) & IFC & Infusion by Promoters Entered SME Finance, NBFC finance a
Slide 30: Vision & Mission
Vision & Mission * To be the world’s most trusted retail bank and coveted employer * That is admired as the epitome of financial inclusion and economic success, + Where ordinary people do extraordinary things to transform society at large, + Thereby guaranteeing trust, confidence and customer deligh
Slide 31: Bouquet of Products
Bouquet of Products Commenced * 1996 2007 2012 * 2012 First time users/ buyers, Small Road Transport operators, Self Employed Clientele typically includes Provision stores, dairy businesses, hotels, restaurants SME & Mid Corporate — Existing Products Wheels (Vehicle Loans) | Secured ee Secured Se NB
Slide 32: Comprehensive banking products for previously unbanked customer segments
Comprehensive banking products for previously unbanked customer segments es Product Portfolio Savings Insurance Accounts (3° Party) Current Accounts Deposit — Fixed & Lockers Recurring Debit Cards Net Banking TAB Banking Mobile Banking v v Few Product Variants - Easy to remember & recollect Go-to-Ma
Slide 33: Summary Financials & Shareholding Pattern
@ Q3 / 9M FY 18 Summary Financial Performance AU Retail Bank, Wholesale Bank Snapshot AU Liabilities & Treasury Snapshot AU About AU Small Finance Bank @ Summary Financials & Shareholding pattern AU SMALL FINANCE BANK no
Slide 34: Robust Operating and Financial Performance (1/2)
Robust Operating and Financial Performance (1/2) Total Revenue and PAT Yields? and Cost of Funds? All figures in INR Cr mRevenue m PAT 1,419 Fy12 FY13 Fy14 FY15 FY16 Fy171 1,489 209 9MFY18 —Avg Yield on Gross AUM Avg cost of funds "i DO OOOD 18.3% 11.6% 10.6% 210.0% 9.6% FY12 17.9% 11.6% FY13 17.7%
Slide 35: Robust Operating and Financial Performance (2/2)
Robust Operating and Financial Performance (2/2) Growth Trajectory i INR cr 02,021 | 146,27: 280,349 | 346,683 accounts infusion ED ED ED ED DD DP 39% 13,415 2194 10,734 Gross AUM 8,221 Net Worth (INR Cr) 5,568 (INR Cr) 311 3.704 4,449 641 oeel sonal Mar-12 Mar-13. Mar-14 Mar-15 Mar-16 Mar-17_ Dec-1
Slide 36: Marquee Shareholders Base — As on 31st Dec 2017
Marquee Shareholders Base — As on 315t Dec 2017! omoter Shareholders (Holding above 1%) Hol Other - ooo Redwood Investment (Warburg Pincus) 15.74% Individual - Domestic, 12.02% International Finance Corporation 7.95% Ourea Holdings (incl. Kedara Capital |) 3.93% Labh Investments (incl. ChrysCapital
Slide 37: Disclaimer
Disclaimer This presentation has been prepared by AU SMALL FINANCE BANK LIMITED (the “Bank”) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. All information contained has been prepared solely by the Ban
Slide 38: Thank You
THANK YOU Contact for Investor queries: Sunil Parnami / Hemant Sethia AU Small Finance Bank Ltd. Tel: +91 22 6249 0614 / +91 141 666 604 Email: investorrelations@aubank.in
Slide 39: Abbreviations
Abbreviations Asset Liability Management Asset Under Management BSE Bombay Stock Exchange CASA Current Account Deposits and Savings Account Deposit CRAR Capital Adequacy Ratio CRR Cash Reserve Ratio Days Past Due EPS Earning Price Per Share IFSC Indian Financial System Code Initial Public Offer R Li
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