Reaching New Heights in Retail Finance. Magma Fincorp Limited Q1 FY16 Results Update

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Pierce Barnett
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1 1 Reaching New Heights in Retail Finance Magma Fincorp Limited Q1 FY16 Results Update

2 INVESTING IN THE SMALLEST DREAMS FOR RURBAN INDIA UNDERSERVED CUSTOMERS 2 CUSTOMISED FINANCING SOLUTIONS PAN INDIA NETWORK 2

3 Business Overview, Competitive Strengths and Strategy Financial Results Q1 FY16 Leadership Team Annexures 3 3

Business Overview: Focus on underserved Rurban India

BUYERS SEGMENT 2 : SELF EMPLOYED NON PROFESSIONAL

with small landholdings (<4 acres) (Tractor buyer)

(taxi/truck/machine driver/operators) Self employed

Small factory owner/contractor, trader/shop owner with

operator (taxi/truck/equipment buyer) SEGMENT 4 :

income sources and low eligibility for bank loans

Customers with limited banking transactions Rurban

4 Business Overview: Focus on underserved Rurban India UNDERSERVED RURBAN CUSTOMERS SEGMENT 1 : FIRST TIME BUYERS SEGMENT 2 : SELF EMPLOYED NON PROFESSIONAL (SENP) SEGMENT 3 : SMALL & MEDIUM ENTREPRENEURS Farmers with small landholdings (<4 acres) (Tractor buyer) First time buyer with prior relevant experience (taxi/truck/machine driver/operators) Self employed customer with informal income sources (Home/Car buyer) Small factory owner/contractor, trader/shop owner with working capital needs ( SME/LAP customer) Small fleet operator (taxi/truck/equipment buyer) SEGMENT 4 : LIMITED BANKING / CREDIT HISTORY Customer with informal income sources and low eligibility for bank loans Customers with no established credit track record Customers with limited banking transactions Rurban includes Rural and Semi-Urban locations/customers Images used for representation purposes only 4 4

5 Business Overview: Provide distinctive financing solutions to customers in Rurban India Strong Recognition and Trusted Brand in Rurban India Diverse Product Offerings Magma s Core Strengths Commercial Finance Customer Focus Underserved Rurban customers Widespread coverage with presence across 1,600 Talukas and 2,900 Locations Technological innovation led faster customer acquisition, portfolio servicing and effective cross-sell Deep Rurban Insight led underwriting and flexi payment options Agri Finance SME Finance Mortgage Finance General Insurance Commercial Finance includes New and Used Vehicles/Equipment; SME Finance includes Unsecured Loans to Business Enterprises; Mortgage Finance includes LAP and Home Loans 5 5

6 FINANCING SOLUTIONS Business Overview: Higher cross-sell for lifetime customer engagement CUSTOMER SEGMENTS ILLUSTRATIVE ASSET PROFILE First Time Buyers Self Employed Non Professionals Small & Medium Entrepreneurs Limited banking / credit history Ticket Size (Rs lakh) Loan to Value Ratio Tenure (months) Commercial Finance % Agri Finance % SME Finance <20 N/A Mortgage Finance % General Insurance Numbers represent average for disbursements done during Q1 FY16 6 6

Business Overview: Product extensions have complemented existing product suite and strengthened Magma s value proposition SYNERGIES WITH ASSET FINANCE

from cross sell to existing Magma customers Cross-collateralization of Unsecured SME loans Focus product that in its 3rd year of operations will have

GENERAL INSURANCE One third of general insurance business sourced from existing Magma customers Profitable business that is also protecting assets financed

underwriting of used assets through inhouse valuer Focus on insuring underserved rurban customers (core Magma customerarchetype) Use tech-enablers to

7 Business Overview: Product extensions have complemented existing product suite and strengthened Magma s value proposition SYNERGIES WITH ASSET FINANCE BUSINESS GROWTH STRATEGY MORTGAGE FINANCE Leverage existing rurban branch network and unique 7 lakh customers profile 20% of total mortgage business sourced from cross sell to existing Magma customers Cross-collateralization of Unsecured SME loans Focus product that in its 3rd year of operations will have highest disbursement across all product segments in Magma as we exit FY16 Focus on rurban SENP customer, with average ticket size in sub Rs 20 lakh range GENERAL INSURANCE One third of general insurance business sourced from existing Magma customers Profitable business that is also protecting assets financed by Magma (securing loan portfolio) Operating leverage through rurban branch network and OEM/channel acquisition at minimum incremental cost Superior underwriting of used assets through inhouse valuer Focus on insuring underserved rurban customers (core Magma customerarchetype) Use tech-enablers to prevent revenue leakage and minimize fraudulent claims Leverage tech-tools to quickly and simply underwrite and issue policies (even to customers who lack standard documentation) 7 7

Competitive Strength: Widespread pan India coverage Extensive Pan India Branch Network Across Rural and Semi-Urban India Hub and spoke model

superior sales productivity, better market coverage, improved channel and customer experience Focus on asset-light model: Field executives

engagement through 7,000+ field executives State of the art toll free Inbound/Outbound Customer Delivery Centre for servicing and cross sell

8 Competitive Strength: Widespread pan India coverage Extensive Pan India Branch Network Across Rural and Semi-Urban India Hub and spoke model with wide coverage led to presence in point of sales enabling sourcing from 1,600 talukas and 2,900 locations Tablet usage has led to superior sales productivity, better market coverage, improved channel and customer experience Focus on asset-light model: Field executives come to branch office once a week; technology solutions enable them to conduct business from channel/customer location Strong customer engagement through 7,000+ field executives State of the art toll free Inbound/Outbound Customer Delivery Centre for servicing and cross sell Region-wise Breakup Rural-Urban Breakup West, 27% North, 32% South, 23% East, 18% Rural, 37% Urban, 21% Semiurban, 42% Branches as on 30 th June

Competitive Advantage: Technology initiatives to strengthen business processes PRE-SALES & SALES CUSTOMER ACQUISITION PROCESS Tablet equipped field executives capable of operating from any location

Outcome Increased Penetration, Faster Turnaround time & Better lead conversion.

for better understanding of customer requirements Outcome Improved Customer experience, Better product design Inputs Agent Portal (MHDI) COLLECTIONS & RISK MANAGEMENT PROCESS Online submission of

9 Competitive Advantage: Technology initiatives to strengthen business processes PRE-SALES & SALES CUSTOMER ACQUISITION PROCESS Tablet equipped field executives capable of operating from any location (virtual office) Electronic transfer of loan application with all documents from point of sale. Usage of Data Analytics for customized Cross sell and Up sell offering. Outcome Increased Penetration, Faster Turnaround time & Better lead conversion. CHANNEL SERVICING & CUSTOMER ENGAGEMENT PROCESS Channel portal allows automatic tracking of files/process Call centre to provide real time support for complaints/enquiries Frontline Decision Support for better understanding of customer requirements Outcome Improved Customer experience, Better product design Inputs Agent Portal (MHDI) COLLECTIONS & RISK MANAGEMENT PROCESS Online submission of Field Investigation reports Cash collection at customer location, on spot money receipts, instant reporting of collections to central database. External credit databases embedded in BI/sales interfaces Outcome Enhanced Customer service, Faster Credit Appraisal, Robust Cash management Need more photos for portals Tablet Sales App Interface Channel Portal Tablet Bluetooth Receipt Printer Centralised Data Centre Disaster Recovery Centre BI & Data Analytics Support Document Management Portals for Channel Partners, Ins Agency 9 9

Competitive Advantage: Risk framework Inter-woven with the business strategy CALIBRATE PRODUCT- CUSTOMER - GEOGRPAHY

Differentitated offering in various markets considering Net Adjusted Return RISK MANAGEMENT FRAMEWORK REFINE CREDIT

Credit hind sighting of early delinquent cases to resolve them and use them as feedback mechanism in credit screens

10 Competitive Advantage: Risk framework Inter-woven with the business strategy CALIBRATE PRODUCT- CUSTOMER - GEOGRPAHY MIX OEM, End-Use and Resale demand driven product classification Informal segment with relevant experience Differentitated offering in various markets considering Net Adjusted Return RISK MANAGEMENT FRAMEWORK REFINE CREDIT SCREENS & PROCESSES Customised screens to consider Informal income streams with relevant experience Asset gradation as per customer profile Online Process Automation at sourcing / under-writing stages for fraud mitigation EARLY WARNING INDICATORS (EWI) Past portfolio based terminal losses as key indicator for developing Early Warning Indicators (EWI) Credit hind sighting of early delinquent cases to resolve them and use them as feedback mechanism in credit screens Branch level tracking involving local business teams SUPPORTED BY STRONG ANALYTICS IN HOUSE TEAM CREDIT BUREAU MODELING COMPETITIVE ANALYSIS 10 10

Business Strategy: Focus on sustained profitable growth ROA ENHANCEMENT COF REDUCTION Focus on product

/Used Assets /SME /Mortgage Finance) Employ judicious mix of NCD / CP / bank lines / securitisation to reduce COF

lending (PSL) OPEX REDUCTION Enhance productivity through technology enablers, automation and process

superior customer service LEVERS ASSET QUALITY IMPROVEMENT Calibrate portfolio according to

11 Business Strategy: Focus on sustained profitable growth ROA ENHANCEMENT COF REDUCTION Focus on product profitability and branch profitability Increase share of higher risk-adjusted yield and high RoA products (Agri /Used Assets /SME /Mortgage Finance) Employ judicious mix of NCD / CP / bank lines / securitisation to reduce COF and limit concentration / liquidity risk Diversify mix of debt market investors Increase share of priority sector lending (PSL) OPEX REDUCTION Enhance productivity through technology enablers, automation and process simplification Reduce customer acquisition cost by Increasing direct sourcing Improving cross-sell Providing superior customer service LEVERS ASSET QUALITY IMPROVEMENT Calibrate portfolio according to productcustomer-geography mix Refine credit screen and processes to optimize portfolio performance Employ product wise early warning indicators and loss tracking mechanisms 11 11

Magma s Corporate Social Responsibility Promotion of Education M Scholar

Schools Setting up infrastructure in Schools for the orphans/

Better Driving Skills to Truck Drivers in 11 locations.

Better Mileage + Fuel Conservation = Potential to save about 50 Lac Ltr.

Planted about 5000 saplings on World Environment Day by employees Health

students from poor families Sanitation Facility and Clean Drinking Water

12 Magma s Corporate Social Responsibility Promotion of Education M Scholar 50 meritorious students from poor families Sponsorship of 15 Tribal Schools Setting up infrastructure in Schools for the orphans/ underprivileged COMMUNITY ENGAGEMENT Environment Sustainability Training Better Driving Skills to Truck Drivers in 11 locations. 40,000 truckers to benefit in FY16. Better Mileage + Fuel Conservation = Potential to save about 50 Lac Ltr. of Diesel in FY16. Reduction in CO2 Emission 1.33 Lac Kg. Planted about 5000 saplings on World Environment Day by employees Health & Wellbeing Mid-day Meal Programme: Offering mid-day meal to 750 students from poor families Sanitation Facility and Clean Drinking Water in 50 rural Schools. Quality Sanitation at 11 Transport Nagars. Medical Check up facility to over 20,000 Truck Drivers to health Camps in Transport Nagars 12 12

13 Business Overview, Competitive Strengths and Strategy Financial Results Q1 FY16 Leadership Team Annexures 13 13

14 Financial Results Q1 FY16 (Consolidated) Q1 FY15 Q1 FY16 Loan Assets Rs 18,295 cr Portfolio churn resulting in share of high RoA products increasing yoy from 45% to 53% Loan Assets Rs 19,189 cr +5 % NIM 5.76 % NIM improvement in line with strategy to alter productcustomer mix NIM 6.39 % +63 bps Opex/Loan Assets 3.53 % Productivity enhancement leading to opex ratio reduction by 26 bps on qoq basis and 13 bps on yoy basis Opex/Loan Assets 3.40 % -13 bps PAT Rs 45.8 cr NIM improvement and opex reduction benefits offset by difficult economic environment and increase in credit cost PAT Rs 46.5 cr +2% RoA 1.34 % Profitability parameters witnessed marginal reduction due to significant increase in credit costs RoA 1.23 % -11 bps EPS Rs 2.13 / share Equity infusion of Rs 500 crore in Q1 FY16 resulted in marginal drop in EPS EPS Rs 1.95 / share -18 paisa 14 14

Significant changes in disbursement mix Disbursements 8,678 9,081 10,115 2,398 1,715 100% 75% 50% 25% 7.4% 14.4% 15.3% 14.2% 17.

15 Significant changes in disbursement mix Disbursements 8,678 9,081 10,115 2,398 1, % 75% 50% 25% 7.4% 14.4% 15.3% 14.2% 17.8% 37% 63% 8.5% 8.9% 17.4% 14.2% 10.0% 11.7% 17.1% 16.2% 19.7% 10.1% 7.6% 12.7% 16.9% 19.7% 18.3% 14.0% 13.0% 8.2% 8.0% 14.0% 9.2% 9.4% 6.1% 3.7% 65% 31.0% 29.3% 24.5% 26.1% 25.4% 35% 0% FY13 FY14 FY15 Q1 FY15 Q1 FY16 UV/Cars CV CE Used Assets Agri Finance SME Finance Mortgage Finance Commercial Finance Values in Rs crore Share of high RoA products (Agri, Used Assets, Mortgage and SME Finance) steadily increasing 15 15

16 Resulting in gradual shift in loan assets mix Loan Assets 16, ,567 18,295 19, % 75% 50% 25% 7.6% 9.4% 4.8% 5.6% 12.5% 35% 16.1% 9.9% 11.3% 13.9% 11.8% 23.7% 17.9% 65% 14.6% 10.8% 5.6% 7.1% 16.9% 17.8% 11.5% 11.9% 11.2% 9.8% 16.6% 13.3% 15.9% 7.6% 18.1% 11.7% 9.3% 11.8% 53% 47% 27.7% 27.8% 25.5% 27.4% 25.6% Values in Rs crore 0% FY13 FY14 FY15 Q1 FY15 Q1 FY16 UV/Cars CV CE Used Assets Agri Finance SME Finance Mortgage Finance Commercial Finance 16 16

17 Loan Assets (Rs crore) Loan assets and NIM expansion Loan Assets 16,240 17,877 19,567 18,295 19,189 20, % 6.40% 15,000 10,000 5,264 6, % 6,292 6, % 5, % 6.00% 5.80% NIM 5.60% 5, % 5.51% 5.40% - 10,976 11,352 13,274 12,296 13,592 FY13 FY14 FY15 Q1 FY15 Q1 FY16 On Book Assets Off Book Assets NIM - Year (yoy) NIM - Qtr (yoy) 5.20% 5.00% NIM expansion driven by gradual shift towards higher yielding products NIM: (Total Income Interest Expenses)/Average Loan Assets; Values in Rs crore 17 17

18 State-wise Loan Assets Breakup Total Loan Assets: Rs. 19,189 crore North: 38% Maharashtra, 9% Uttarakhand/Delhi, 7% Haryana, 7% Punjab/Himachal, 4% Rajasthan, 9% Uttar Pradesh, 12% Madhya Pradesh, 8% Bihar, 4% West: 25% Gujarat, 5% Jharkhand, 2% East: 14% Chattisgarh, 3% Orissa, 4% Tamil Nadu, 4% West bengal, 4% Kerala, 5% Karnataka, 6% Seemandhra, 3% Telangana, 5% Value as on 30 June 2015; Includes Off B/S loan assets South: 23% Diversification of loan book exposure minimizes impact of regional/local/single event risks 18 18

19 Liability Profile On B/S Debt 10,599 10,375 11,847 11,128 11, % 75% 16.2% 15.3% 13.7% 15.5% 12.9% 30.7% 28.9% 21.5% 25.8% 23.0% 50% 25% 53.1% 55.8% 64.9% 58.7% 64.1% 0% FY13 FY14 FY15 Q1 FY15 Q1 FY16 Pref capital, sub debt, perpetualdebt and Loans from FIs Debt Capital Markets Banks Consortium of 21 public & private sector banks Capital market funding from wide spectrum of lenders including MFs, Insurance companies, Pension / Provident funds and Corporates among others Other unsecured debt includes Perpetual debt, Sub debt and Preference capital Magma has a long term rating of AA- and short term rating of A1+ (rated by both ICRA and CARE) Values based on MFL Consolidated financials and in Rs crore as on closing day of the period 19 19

20 NPA Recognition NPA (% of Total Loan Assets) 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 0.7% 0.3% 2.7% 2.0% GNPA % NNPA % 3.9% 3.0% 3.2% 2.4% 4.8% 3.6% 5.3% 4.1% FY13 FY14 FY15 Q1 FY15 Q1 FY16 Q1 FY16 (@150 dpd) 180 dpd 150 dpd Magma follows conservative NPA recognition policy at 120 days default instead of current RBI requirement of 150 days Based on MFL Consolidated financials 20 20

21 P&L Statement (Consolidated) Values in Rs crore % Change Q1 FY16 Q1 FY15 Q4 FY15 Y-o-Y Q-o-Q FY15 FY14 Income from Ops % -2% 2, ,081.3 Interest Expenses % -3% 1, ,177.1 Net Operating Income % -1% 1, Other Income % 10% Net Total Income % -1% 1, Prov./Write Offs % 65% Post Prov Profit % -15% Operating Expenses % -13% :Personnel Expenses % -17% :Other Expenses % -8% :Depreciation % -20% Profit Before Tax % -18% Taxes % -32% Profit After Tax % -14%

22 Balance Sheet (Consolidated) Q1 FY16 Q1 FY15 Q4 FY15 % Change Y-o-Y Q-o-Q FY15 FY14 LIABILITIES 15,300 14,069 14,882 9% 3% 14,882 13,178 Net Worth 2,187 1,546 1,655 41% 32% 1,655 1,504 Share Capital % 24% Reserves and Surplus 2,139 1,508 1,617 42% 32% 1,617 1,466 Minority Interest % 3% Preference Capital % -36% Borrowings 11,522 10,991 11,714 5% -2% 11,714 10,226 Other Liabilities 1,465 1,359 1,341 8% 9% 1,341 1,266 ASSETS 15,300 14,069 14,882 9% 3% 14,882 13,178 Loan Assets 13,592 12,296 13,274 11% 2% 13,274 11,352 Fixed Assets % -3% Other Assets % 27% Cash & Bank Balance % -16% TOTAL LOAN ASSETS 19,189 18,295 19,567 5% -2% 19,567 17,877 Values in Rs crore 22 22

23 Key Ratios (Consolidated) Q1 FY16 Q1 FY15 Q4 FY15 Change (in bps) Y-o-Y Q-o-Q FY15 FY14 Total Income/Assets 16.3% 16.3% 16.7% % 16.1% Interest Exp/Assets 8.1% 8.6% 8.4% % 9.0% Gross Spreads 8.2% 7.6% 8.3% % 7.2% Prov & WO/Assets 2.3% 1.5% 1.4% % 1.4% Opex/Assets 4.4% 4.7% 5.0% % 4.3% PBT/Assets 1.5% 1.5% 1.9% % 1.5% RoA 1.23% 1.34% 1.44% % 1.21% RoE 8.88% 10.64% 12.03% % 9.55% CRAR Tier % 11.2% 11.1% % 11.5% Total 18.7% 17.1% 16.3% % 16.6% CRAR based on MFL (Standalone) financials Assets implies average of opening and closing balance of On B/S Assets of MFL (Consolidated) 23 23

24 Business Overview, Competitive Strengths and Strategy Financial Results Q1 FY16 Leadership Team Annexures 24 24

25 Strong corporate governance Integrity and Credibility Openness and Transparency Magma s Core Values Trust and Respect for People Fairness and Impartiality Demanding Excellence 25 25

Board of Directors Promoter Directors Non Promoter Directors Mayank

Management/Board Over 30 years of experience in the financial sector.

Also served as Group President in Raymond Sanjay Chamria VC and MD

Drives new business initiatives and leads management team Ritva

Over 3 decades of experience in investments, financial markets and

Chamber of Commerce and Industry among others.

26 Board of Directors Promoter Directors Non Promoter Directors Mayank Poddar Chairman Supports policy formulation and guidance to the Management/Board Over 30 years of experience in the financial sector. Sanjay Nayar Non Executive Director (Nominee of KKR) CEO and Country Head of KKR, India. Ex CEO of Citi India & South Asia operations Nabankur Gupta Founder - Nobby Brand Architects & Strategic Marketing Consultants. Pioneer of sub branding and multi branding in India. Also served as Group President in Raymond Sanjay Chamria VC and MD Anchors strategic policy formulation and execution. Drives new business initiatives and leads management team Ritva Laukkanen Non Executive Director (Nominee of IFC) Ex-Director in IFC. Over 3 decades of experience in investments, financial markets and development finance Satya Brata Ganguly Chairman Emeritus of Exide Industries. On the board of Indian Chamber of Commerce and Industry and Bengal Chamber of Commerce and Industry among others. Narayan K Seshadri Entrepreneur consultant. Former Country Head - KPMG Consulting & Head of Business Consulting in Arthur Andersen Neil Graeme Brown Co-Founder of Subito Partners (UK). Ex-Partner of Coopers & Lybrand (now PwC) and Ex-Director of Apax Partners. Set up FIG practice in Apax Partners 26 26

27 Management Team Sanjay Chamria VC and MD 30 years Financing business General Insurance business (Magma HDI) Support functions Sachin Khandelwal Chief Sales Officer 22 years, CEO-ICICI HFC Swaraj Krishnan CEO-MHDI 37 years, CEO-Bajaj Allianz Atul Bansal Chief Financial Officer 30 years, CFO-Mu Sigma Kailash Baheti Chief Strategy Officer 30 years, CEO-Century Extrusions Ashutosh Shukla Chief Operating Officer 28 years Vikas Mittal Chief Sales Officer-MHDI 22 years, MD&CEO-Enam Securities Janet Gasper Chowdhury Chief People Officer 19 years, Director-PwC Raj Kumar Kapoor Chief Audit Officer 28 years, Chief Internal Auditor Jubilant Organsys Mahender Bagrodia Chief of Receivables Mgmt 22 years Ram Kalyan Medury Chief Information Officer 17 years, CIO-ICICI Lombard Sumit Mukherjee Head Products & Program 23 years, VP-Citicorp Name, Current responsibility, Experience in years, Previous organisation Senior management with extensive experience both within Magma and in the industry 27 27

Holding Structure, Shareholding Pattern and Top Shareholders Magma Fincorp (Consolidated) Net Worth: Rs 1,655 cr PAT: Rs 187.

cr Net Worth: Rs 218 cr PAT: Rs 149.1 cr PAT: Rs 25.4 cr PAT: Rs 5.8 cr PAT: Rs 10.6 cr Shareholding of Magma Fincorp (on 30 June 2015) Top Non Promoter Shareholders Public 5.5% Promotor, 27.

28 Holding Structure, Shareholding Pattern and Top Shareholders Magma Fincorp (Consolidated) Net Worth: Rs 1,655 cr PAT: Rs cr 100% 74% 37% 100% Magma Fincorp (Standalone) Magma ITL JV (tractor biz) Magma HDI JV (general Insurance biz) Magma Housing Finance Net Worth: Rs 1,384 cr Net Worth: Rs 153 cr Net Worth: Rs 181 cr Net Worth: Rs 218 cr PAT: Rs cr PAT: Rs 25.4 cr PAT: Rs 5.8 cr PAT: Rs 10.6 cr Shareholding of Magma Fincorp (on 30 June 2015) Top Non Promoter Shareholders Public 5.5% Promotor, 27.0% Overseas Bodies, 40.6% KKR India Value Fund IFC, Washington Domestic Investors 4.3% FII, 22.6% Chrys Capital Raised Rs 500 crore from India Value Fund, Leapfrog Investments and KKR in May 2015 Leapfrog Investments Net Worth and PAT for all subsidiaries/jvs (at 100% value) as per FY15 financials 28 28

Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations.

29 THANK YOU Forward Looking Statements Certain statements in this document with words or phrases such as will, should, etc.., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but are not limited to, our ability to successfully implement our strategy and changes in government policies. The company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company s filings with the stock exchanges and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company

30 Business Overview, Competitive Strengths and Strategy Financial Results Q1 FY16 Leadership Team Annexures 30 30

31 Profit & Loss Statement (Standalone) Q1 FY16 Q1 FY15 Q4 FY15 Y-o-Y % Change Q-o-Q FY15 FY14 Income from Ops % -3% 2, ,846.8 Interest Expenses % -4% 1, ,055.2 Net Operating Income % -2% Other Income % 52% Net Total Income % -1% Prov./Write Offs % 64% Post Prov Profit % -14% Operating Expenses % -15% :Personnel Expenses % -21% :Other Expenses % -6% :Depreciation % -20% Profit Before Tax % -13% Taxes % -13% Profit After Tax % -13% All values in Rs crore 31 31

32 Balance Sheet (Standalone) Q1 FY16 Q1 FY15 Q4 FY15 % Change Y-o-Y Q-o-Q FY15 FY14 LIABILITIES 12,645 12,072 12,312 5% 3% 12,312 11,318 Net Worth 1,910 1,298 1,384 47% 38% 1,384 1,264 Share Capital % 24% Reserves and Surplus 1,863 1,260 1,345 48% 38% 1,345 1,226 Minority Interest Preference Capital % -49% Borrowings 9,614 9,629 9,815 0% -2% 9,815 8,918 Other Liabilities 1,071 1,044 1,016 3% 5% 1,016 1,021 ASSETS 12,645 12,072 12,312 5% 3% 12,312 11,318 Loan Assets 11,298 10,508 11,040 8% 2% 11,040 9,740 Fixed Assets % -3% Other Assets % 37% Cash & Bank Balance % -20% All values in Rs crore TOTAL LOAN ASSETS 16,528 16,200 16,921 2% -2% 16,921 15,

33 Profit & Loss Statement: Magma ITL (MITL) Q1 FY16 Q1 FY15 Q4 FY15 Y-o-Y % Change Q-o-Q FY15 FY14 Income from Ops % -7% Interest Expenses % -12% Net Operating Income % -4% Other Income % -28% Net Total Income % -5% Prov./Write Offs % 276% Operating Expenses % -4% Profit Before Tax % -64% Taxes % -226% Profit After Tax % -34% All values in Rs crore 33 33

34 Profit & Loss Statement: Magma Housing Finance (MHFC) % Change Q1 FY16 Q1 FY15 Q4 FY15 Y-o-Y Q-o-Q FY15 FY14 Total Income % 2% Interest Expenses % 9% Net Income % -8% Prov./Write Offs % -28% Operating Expenses % -3% Profit Before Tax % -7% Taxes % -18% All values in Rs crore Profit After Tax % 0%

35 Profit & Loss Statement: Magma HDI General Insurance Company (MHDI) Q1 FY16 Q1 FY15 Q4 FY15 Y-o-Y % Change Q-o-Q FY15 FY14 Gross Written Premium % -46% Net Earned Premium % -2% (-) Claims Incurred % -14% (-) Net Commission % -19% (-) Management Expenses % 0% Underwriting Profit % -36% (+) Investment Income % -37% Profit Before Tax % -36% (-) Taxes % -15% Profit After Tax % -43% All values in Rs crore 35 35

Reaching New Heights in Retail Finance FY15 Update

Reaching New Heights in Retail Finance FY15 Update 1 Magma Fincorp Limited HELPING PEOPLE REACH OUT TO THEIR DREAMS 2 2 Financial Results FY15 Business Overview and Strategy Leadership Team Annexures 3