#11 Aptus Value Housing Finance India Limited Investor Presentation | Q3 FY23 ɅPTUS 田田#2Safe 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 subscribe for any securities and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, the Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and action regulations, interest and other fiscal costs generally prevailing in the economy. The Company doe not undertake to make any announcement in case any of these forward looking statement become materially incorrect in future or update nay forward looking statements made from time to time by or on behalf of the Company. 2 Q3 FY 23 Investor Presentation APTUS™#33 Background Commenced Operations in 2010 from Chennai, Tamil Nadu Regulated by RBI and supervised by NHB Run by professional management team backed by strong Founder Promoter and marquee investors O Q3 FY 23 Investor Presentation Presence in 215 locations APTUS™#4Key Strengths 4 1 Presence in Large Underpenetrated Market 2 Leader in Attractive South Market APTUS 3 Good Asset Quality 4 Industry Leading Profitability 5 Good Governance, Management and Alignment Q3 FY 23 Investor Presentation ☑ M APTUS™#5Snapshot - December 2022 Assets under Management (AUM) YOY QoQ +31% Rs. 6307 Cr Spread 14.45 % Consistently maintained +6% +55% Return on Assets 8.53% Consistently maintained (*)-As perRBI circular dated 12 Nov 2021 5 +14 bps Disbursement Rs. 1734 Cr Opex to Assets 2.75 % +1% -9 bps -2 bps Q3 FY 23 Investor Presentation Return on Equity 16.02 % Improved from 14.45% +41 % Gross Stage 3 (*) 1.44 % Profit After Tax Rs. 368 Cr -3 bps +2% APTUS™#6Diversified Loan Portfolio With Niche Customer Focus Secured Portfolio - Home Loans (HL) / Small Business Loans (SBL) 6 Insurance loans 4% Quasi Home Loans 24% HFC NBFC Top up loans 4% Small business loans (SBL) 100% NBFC 0% LIG Customers Home Loans 68% O AUM-Rs.5547 Cr Consolidated Small business loans 20% Top up loans 4% Insurance loans 3% Quasi Home Loans 15% - AUM Rs.6307 Cr 77% Self Employed Borrowers 71% - AUM Rs.760 Cr Rural Focus 72% Home Loans 59% Average Ticket Size < Rs.10 lacs >93% Q3 FY 23 Investor Presentation APTUS™#77 100% In-House Operations Fully In-House Team... % 愿 凸 ...Leading to Desired Business Outcomes Pricing Power 1,323 252 Credit Business origination 89 Reduced TAT lill 216 Legal & technical 417 Collection Low Takeover ▪ར་ $ 141 HO/Operations Q3 FY 23 Investor Presentation $ Reduced Operational Risk APTUS™#88 Robust Underwriting, Monitoring and Collections Process 100% In-House Sourcing Leveraging Technology Stringent Credit Underwriting Robust Collection Management System • Lead Generation through Cust app,Ref app • Social media • 215 Branches Digital Onboarding and KYC Cash flow assessment Pre & Post Disbursement 15-24 months Monitoring early default signs 0% Sourcing from DSA / Builders Credit verification app, property app and legal app - Optimal leverage of technology leading to efficient processing Q3 FY 23 Investor Presentation Centralized Underwriting 90 DPD Legal action/ SARFAESI APTUS™#9Information & Technology: Key Enabler of Growth Lending Software End-to-end software solution Customer Relationship & Service Automated CRM and customer service requests Human Resources Human resources management system application 9 1 2 3 4 5 6 Customer Onboarding Sales app, referral app, credit verfn. app and property app E-KYC, E-Nach Collections App, Payments automation via Bharat Bill Pay, Google Pay, Paytm etc Business Intelligence & Analytics "Power" analytics platform Q3 FY 23 Investor Presentation APTUS™#10MACHINE LEARNING MICROSOFT POWER BI Data 1 Analyti Scalable and Robust Digital Landscape Mobile App for customer on-boarding, Credit Verification, Technical Valuation, Collections & Customer Service ✓ Easy, Quick & Transparent process right from the field ✓Robotic Process Automation (RPA) to eliminate manual process ✓Electronic Payments ✓Leegality - eStamp & eSign - In Progress B 21 Mobility 10 Lead generation through Campaigns. ✔Tie-up with marketing partners to get the leads [Tuskmelon, Alchem] Brand awareness Location awareness Product and service awareness "End-To-End Digital Process " igital Marketing A [0] f Tech Infra Q3 FY 23 Investor Presentation ✓ Time Series Forecast Using Statistical Model and Tensor Flow for Bounce Prediction. Machine Learning Models for Analysis and Predictions. •Customer Profile Analysis •Loan Foreclosure Prediction •Probability of Default model ✓ "Power BI❞ for Live Dashboards Razorpay BBPS BHARAT BILL PAYMENT SYSTEM ✓ End-to-End ERP solution Backups on Cloud ✔Payment automation via Bharat Bill Pay Services and Razorpay API integration in Collection app APTUS™#1111 Risk and Data Science Backed Centralized Underwriting A Risk Management ⚫ 25+ key 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 • Tech enabled evaluation of customers • Integration of credit score card with lending application for easier credit evaluation • Analyzing profiles behaviour for continuous improvement of parameters through machine learning for Better & Faster credit decisioning Centralized Processing Consistency in underwriting with expertise in state- wise analysis along with linguistic skills • Effective training ,knowledge sharing and monitoring process • Quick adoption to process change Loans approved within 72 hrs > 90 % Q3 FY 23 Investor Presentation APTUS™#12Scalability Tamil Nadu Andhra Pradesh Telangana Karnataka Per Capita GDP 1.8x Compared to national 1.1x 1.5x 1.5x average of INR 157k GDP Growth 13% 9% 8% 7% India average: 4% Branch Productivity as on Dec 31, 2022 AUM per Branch (Rs. Cr) # of Branches 16 32 167 34.27 % of AUM as on No of 15.95 State branches 9M FY 23 FY 22 FY 21 FY 20 TamilNadu 82 44% 48% 52% 56% 4.40 AndhraPradesh 79 34% 31% 28% 24% Telangana 33 13% 12% 10% 10% Karnataka 20 8% 9% 10% 10% <1 Year Old 1-3Year Old >3 Year Old Odisha 1 0% 0% Total 215 100% 100% 100% 100% 12 (*) - Four more branches opened in Jan 2023 including one in Orissa Q3 FY 23 Investor Presentation APTUS™#1313 Scalable Operating Model CAGR -30% (5 Years) ○ Incorporation № Became Profitable First PEEquity AUM Rs.100 Cr Westbridge Expansion 4 States 100th Branch 1414 846 519 358 252 29 86 159 2010 2011 2012 2013 2014 2015 (#) - Represents on book portfolio (no Direct Assignment transactions done) AUM Rs. Crores Equity from Marquee Investors 2247 Customers over 50000 3183 4067 Company Listed 5183 2016 2017 2018 2019 2020 2021 2022 9M FY 23 Q3 FY 23 Investor Presentation 6307(#) APTUS™#14Resilient Model Across Economic Cycles 14 GST Implementation FY 18 NBFC Liquidity Crisis FY 20 Covid-19 (first wave) FY 21 Covid-19 (Second wave) Geo Political FY 22 Issues 9M FY 23 AUM growth 66% 41% 28% 27% 31% Yield 17% 18% 17% 17% 17% GNPA 0.5% 0.7% 0.7% 1.19%(#) 1.44%(#) ROA 6.0% 7.8% 7.4% 8.00% 8.53% # - As per RBI circular dated 12 Nov 2021 Q3 FY 23 Investor Presentation APTUS™#15Strong ESG Focus 15 Focus on financial inclusion Improving Living Standards Strong Corporate Governance 76% LIG 72% Self-employed Employment in rural / semi-urban areas NIL Material Civil litigation 38% New to Credit Support to borrowers in tier 2/3/4 locations leading to financial inclusion Diversified Experience of Board Members across academic and professional domains Q3 FY 23 Investor Presentation APTUS™#16Performance Highlights (Quarterly) Disbursement (Rs. Cr) 16 525 604 605 5519 AUM (Rs. Cr) 6307 1.75% 5932 Gross NPA(%) 1.47% 1.44% Q1 FY 23 02 FY 23 Q3 FY 23 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q1 FY 23 Q2 FY 23 Q3 FY 23 119 ROE (%) 16.02% 15.89% 8.53% 15.83% PAT (Rs. Cr) 123 126 8.88% ROA (%) 8.71% FEE 01 FY 23 Q1 FY 23 Q2 F Y 23 Q2 FY 23 Q3 FY 23 Q3 FY 23 Q1 FY 23 Q2 F Y 23 Q3 FY 23 Q3 FY 23 Investor Presentation APTUS™#17Performance Highlights (Year on Year) Disbursement (Rs. Cr) AUM (Rs. Cr) 17 1120 55% 1734 4805 31% 6307 1.53% Gross NPA (%) 1.44% 9M FY 22 9M FY 23 Dec 2021 Dec 2022 Dec 2021 Dec 2022 PAT (Rs. Cr) 260 41% 9M FY 22 368 7.62% ROA 8.53% 14.12% ROE (%) 16.02% 9M FY 23 9M FY 22 9M FY 23 9M FY 22 9M FY23 Q3 FY 23 Investor Presentation APTUS™#18Consistent Spreads 18 Yields/Cost of Borrowings (%) 17.30% 17.20% 17.03% 16.90% 16.89% 16.89% 16.89% 16.85% 16.90% 9.80% 9.80% 8.43% 7.74% 7.90% 8.00% 7.90% 7.74% 7.70% FY 19 FY 20 FY 21 FY 22 9M FY 23 NIM (%) 9.15% 9.00% 8.60% 7.40% FY 20 FY 21 FY 22 9M FY 23 Q3 FY 23 Investor Presentation DEC 21 MAR 22 SEP 22 DEC 22 8.89% 9.15% 9.15% 9.00% Dec 2021 Mar 2022 Sep 2022 Dec 2022 APTUS™#19Opex and ROA 19 3.80% 3.40% 2.78% 2.75% 2.53% Opex (%) 2.61% 2.53% 2.77% 2.75% FY 19 FY 20 FY 21 FY 22 9M FY 23 Dec 2021 Mar 2022 Sep 2022 Dec 2022 ROA (%) 6.10% 8.53% 8.00% 7.37% 7.01% FY 19 FY 20 FY 21 FY 22 9M FY 23 8.71% 8.53% 8.00% 7.62% Dec 2021 Mar 2022 Sep 2022 Dec 2022 Q3 FY 23 Investor Presentation APTUS™#20Asset Quality Gross NPA (%) 20 PCR-73% 1.53% 1.17% 1.75% 1.16% 1.47% 1.44% 0.87% Net NPA (%) 1.32% 1.10% 1.08% Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2021 Mar 2022 Jun 2022 Dec 2022 Sep 2022 Dec 2022 Non Cash collections >95% 98.28% Collection efficiency (%) 103.14% 101.17% 100.21% 100.31% Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 12.98% 9.91% 30+ DPD (%) 6.48% 6.50% 6.27% Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Q3 FY 23 Investor Presentation APTUS™#21Provision for Contingencies (ECL) Rs. Lakhs Consolidated Particulars 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Mar-21 Gross Stage 3 % portfolio in Stage 3 9,107.22 1.44% ECL Provision Stage 3 2,276.81 Net Stage 3 6,830.42 8,692.27 1.47% 2,173.07 6,519.20 9654.17 1.75% 2,413.54 7,240.63 6,183.67 1.19% 1,545.92 4,637.74 2,717.11 0.67% 1,178.23 1,538.88 Provision coverage ratio (PCR) 25.00% 25.00% 25.00% 25.00% 43.36% Gross Stage 2 % portfolio in stage 2 ECL Provision Stage 2 30,402.31 4.82% 2,235.63 29,818.89 26,049.50 45,155.90 Net Stage 2 28,166.68 Provision coverage ratio (PCR) 7.35% 5.03% 1,915.17 27,903.72 6.42% 4.72% 902.49 25,147.01 3.46% 8.72% 1,020.68 44,135.22 2.26% 35,289.12 8.68% 176.45 35,112.67 0.50% Gross Stage 1 5,91,158.93 5,54,715.88 5,16,195.10 4,66,620.41 3,68,769.06 % portfolio in stage 1 ECL Provision Stage 1 93.74% 2,157.73 Net Stage 1 5,89,001.20 93.51% 1,886.03 5,52,829.85 93.53% 1,755.06 5,14,440.04 90.09% 1,602.02 4,65,018.39 90.66% 328.06 3,68,441.00 Provision coverage ratio (PCR) 0.37% 0.34% 0.34% 0.34% 0.09% Total AUM 6,30,668.46 21 ECL Provision Provision coverage ratio (PCR) Q3 FY 23 Investor Presentation 6,670.17 1.06% 5,93,227.04 5,974.27 1.01% 5,51,898.77 5,17,959.98 4,06,775.29 5,071.10 0.92% 4,168.62 0.80% 1,682.74 0.41% APTUS™#22Robust Funding Management and Credit Profile 20+ Lender Relationships 22 22 NCDs, 11% NHB, 23% Diversified and Balanced Funding Mix Sources of funds mix(%) Others, 4% Banks, 62% Avg. tenureof Q3 FY 23 FY22 FY21 borrowings(month S) 85.9 84.7 83.3 • Others represents Securitisation Credit Rating (ICRA)- Upgraded to AA-from A+ • Credit Rating (CARE) - Upgraded to AA-from A+ No Exposure to Short term loan incl CPS Q3 FY 23 Investor Presentation Public Sector Private Sector DFI NHB International Finance Corporation HDFC Bank Axis Bank Federal Bank Kotak Bank SBI Bank of Baroda Indian Bank Bank of Maharashtra APTUS™#23ALM Surplus Position as on 31 Dec 2022 (Rs.Cr) 23 339 <3 months 834 3-6 months 6m to 1 year 1 to 3 years 467 657 677 830 3 to 5 years 682 5 to 7 years 480 7 to 10 years 338 >10 years 945 1154 Outflows Inflows 1872 1768 2123 2446 Q3 FY 23 Investor Presentation Surplus 496 191 154 2609 737 1293 1441 1288 607 APTUS™#24Fixed Vs Floating (Assets Vs. Liabilities) Loan Assets & Borrowings (Cr) As on Dec-22 Borrowings - Fixed Vs. Floating (*) 24 24 6307 6307 1572 1388 (24%) (22%) 60% 61% 62% 58% 55% 57% 2087 (34%) 4919 (78%) Loan Assets 2648 (42%) Borrowings/Equity Equity Fixed Floating gap between Loan Assets & Borrowings filled by a portion of Equity 45% 43% 40% 39% 42% 38% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 ■Fixed % Floating % Q3 FY 23 Investor Presentation APTUS™#25Comfortable liquidity position/Capital Adequacy A. Liquidity 25 Unencumbered Cash and Cash Equivalents Un availed sanctions from NHB Total Particulars Opening Liquidity Add: Principal repayments and surplus from operations Less: Debt repayments Closing Liquidity 664 400 1,064 Rs. Crores Q4 FY 23 Q1 FY 24 1064 1191 312 317 185 250 1,191 1,259 • Rs. 1250 crores available for business upto June 2023 B. Capital Adequacy Capital Adequacy as on 31 Dec 2022 -79.32% Q3 FY 23 Investor Presentation APTUS™#26Key Growth Strategies 26 ך Continued Focus on Existing Segment • 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 Deeper Penetration in Existing Markets Continued focus on productivity • Contiguous expansion and increasing penetration Branch expansion in new markets - Odisha, Maharashtra, and Chhattisgarh • Focus on Opex including cost of funds • Continue to improve credit ratings Q3 FY 23 Investor Presentation APTUS™#27Experienced and Well Diversified Board 27 27 CMD Non-Executive Nominee Directors M. Anandan Chairman & Managing Director Sumir Chadha Nominee Director - WestBridge S. Krishnamurthy Former MD and CEO, SBI Life Insurance Non-Executive Independent Director Non-Executive Independent Directors K. M. Mohandass Partner, KM Mohandass & Co. KP Balaraj Nominee Director - WestBridge Krishnamurthy Vijayan Former MD, JPM Asset Mgmt. Non-Executive Directors Mona Kachhwaha Director - Impact Investors Council Shailesh J. Mehta VG Kannan Partner, Granite Hill Capital Partners Former- MD, SBI Q3 FY 23 Investor Presentation Suman Bolina Executive Managing Partner, Sri Santhi Corp. APTUS™#28Stable Management 28 Balaji P ED & CFO Several years of experience in finance, treasury, banking, fund raising M.Anandan Chairman & Managing Director 4 decades of experience in Financial Services Subramaniam G ED - Chief of Operations and Risk Several years of experience in lending (financial products), risk management, operations and collections C.T. Manoharan Executive Vice President - Business Development Rich experience in housing finance industry across sales, channel and distribution management N.Srikanth Vice President - HR Seasoned Professional with experience in HR planning, recruitment, training, induction, employee relations and engagement V. Krishnaswami Sr. Vice President - Information Technology Experience in strategizing and implementing digital technology solutions, IT designs and, infrastructure. Ramesh K Vice President - Credit Rich experience in areas of Credit & Risk Management, Fraud Control and operations in retail finance. John Vijayan Chief Risk Officer Experience in Financial Services in the areas of Operations, Finance, Customer Servicing and Internal Audit. Q3 FY 23 Investor Presentation Sundara Kumar V Vice President - Legal & Receivables Legal experience in title deed scrutiny, SARFAESI and arbitration procedures in housing finance / mortgages. APTUS™#29Diversified Shareholding Shareholding Pattern as on 27 Jan 2023 Public & Others. 5.41% DII 2.60% 29 29 Investor Promoter - WestBridge 37.19% FII 29.78% Founder Promoter- M.Anandan 25.02% Top Institutional Shareholders as on 27 Jan 2023 Investor Details % of holding Key Investors Malabar Group 8.41 Ward Ferry 3.50 Capital Research 3.40 Steadview Capital 3.19 Sequoia 2.78 Madison 1.86 Aberdeen 1.80 Vanguard 1.39 Genesis 1.17 Neuberger Berman 1.01 Q3 FY 23 Investor Presentation APTUS™#30Annexures 30 Q3 FY 23 Investor Presentation APTUS™#3131 Consolidated Statement of Profit and Loss(*) Rs. Crores Growth FY 22 Particulars Q3 FY 23 Q2 FY 23 9 M FY 23 9 M FY 22 9M FY 23 over 9M FY 22 791.67 Interest income on loans 277.32 257.47 767.79 574.41 34% 48.55 Processing fees and other income 17.48 19.58 52.82 31.46 208.59 Interest expense 77.16 66.83 198.25 159.36 631.63 NIM 217.64 210.22 622.36 446.51 39% 117.14 Operating expenses 41.43 44.55 118.66 86.81 37% 34.47 Provisions - ECL/Write offs 7.78 9.07 26.37 24.00 480.02 Profit before tax 168.43 156.60 477.33 335.70 42% 109.88 Provision for Taxation 42.87 33.28 109.62 75.41 370.14 Profit After Tax 125.56 123.32 367.71 260.29 41% (*) Based on Ind AS Q3 FY 23 Investor Presentation APTUS™#32Consolidated Statement of Assets and Liabilities(*) 32 32 Rs. Crores Particulars Sources of Funds Share capital Reserves & Surplus Total Networth 31-Dec-22 31-Mar-22 99.60 3102.73 99.38 2,816.78 3,202.33 2,916.16 Borrowings 3659.11 2,720.63 Other liabilities and provisions 54.06 47.25 Total 6,915.50 5,684.04 Application of Funds Loan Assets Fixed Assets Liquid Assets - Bank FDs, MFs Other Assets Total (*) Based on Ind AS - Q3 FY 23 Investor Presentation 6177.58 4.55 671.19 62.18 6,915.50 5,078.75 4.01 547.59 53.69 5,684.04 APTUS™#3333 RoA Tree Particulars 9M FY 23 FY 22 Revenue from operations/Avg Loan book 18.45% 17.51% Other Income/Avg loan book 0.60% 0.67% Total Revenue/Avg loan book 19.05% 18.17% Finance cost/Avg loan book 4.60% 4.51% Spread/Avg loan book 14.45% 13.66% Operating expenses/Avg loan book 2.75% 2.53% ECL Provision/Avg loan book 0.61% 0.75% PBT/Avg loan book 11.08% 10.38% PAT/Avg loan book 8.53% 8.00% PAT/Networth 16.02% 14.45% Q3 FY 23 Investor Presentation APTUS™#34Thank You 34 Q3 FY 23 Investor Presentation APTUS™