Market Leader in High-Yield Pre-Owned CV Financing

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1 MARCH, 2015

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4 Market Leader in High-Yield Pre-Owned CV Financing Shriram Transport Finance Company Limited (STFC) is one of the largest asset financing NBFC specialised in pre-owned commercial Operating Revenue Break Up vehicle financing. Strategically present in high yield - pre-owned CV financing with expertise in loan origination, valuation and collection FY 14 Rs bn FY15 Rs bn Expanded product portfolio to include financing of tractors, small commercial vehicles, 3-wheelers, passenger commercial vehicles and construction equipment Large customer base in excess of 1.2 mn as of March 31, 2015 Employee strength of approximately 16,160 including 9,658 product/ credit executives as of March 31, Listed on the National Stock Exchange and Bombay Stock Exchange with a market capitalisation of over Rs. 250 bn as on March 31, 2015 Foreign institutional investor holds more than 51 percent of the company equity. Large Assets Under Management ( as on March, 2015) Extensive Distribution Network Total Assets Under Management (AUM) Pan-India presence through a network of Pre-Owned CV: Approximately Rs bn 741 branch offices New CV: Approximately Rs bn 776 rural centres Others: Approximately Rs bn Partnership with over 500 Private Financiers 4

5 Corporate History AUM: Rs bn 2010 Securitised Rs bn during FY Successfully raised Rs bn through QIP with domestic & international investors. As of March 31, Successfully placed Rs. 10 bn of NCD with domestic investors Purchased hypothecation loan outstandings of commercial vehicles and construction equipments of GE Capital Services India and GE Capital Financial Services (GE) aggregating to approximately Rs. 11 bn Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd. With STFC ; PAT crosses Rs. 1,000 mn (2006) Investment from ChrysCapital (2005) and TPG (2006) Preferential Allotment to Citicorp Finance (India) in 2002 Preferential Allotment to Axis Bank and Reliance Capital in 2004 AUM: Rs bn 1999 Tied up with Citicorp for CV financing under Portfolio Management Services (PMS) The 1 st securitization transaction by STFC 1990 Investment from Telco & Ashok Leylond 1984 Initial Public Offering 1979 STFC was established 5

6 Unique Business Model CV Financing Business Model Pre Owned (5-12 Years & 2-5 Years Old CVs) New Lending yields 18-24% (5-12 years) Lending yields 15-16% (2-5 years) Lending yields 14-16% Target Segment Small truck owners (less than 2-3 trucks) with underdeveloped banking habits Existing customer base upgrading to new trucks Performance AUM of Rs bn at the end of FY15 AUM of Rs bn at the end of FY15 FY10 FY11 FY12 FY13 FY14 FY15 Vehicles sold during FY10-15 LCV 287, , , , , ,206 MHCV 244, , , , , ,755 Total 532, , , , , ,961 6

7 With a Strong Financial Track Record Total Income Net Interest Income 91,000 84,000 77,000 70,000 63,000 56,000 49,000 42,000 35,000 28,000 21,000 14,000 7,000 0 (Rs mn) 78, , , , , ,000 42,000 39,000 36,000 33,000 30,000 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 (Rs mn) 41, , , , , Net Profit EPS 14,000 (Rs mn) 13, (Rs) 13,000 12,000 12, , , , ,

8 Driven by Fast Growth in AUM with Low NPAs AUM (Rs bn) 550& 490& 430& 370& 310& 250& 190& 130& 70& 10&,50& 182.3& 166.3& 98.8& 163.2& 182.3& 314.5& 364.9& 198.7& 219.9& 492.3& 2011& 2012& 2013& 2014& 2015& Off,Books& On,Books& 4.5% 4.0% 3.5% NPA Levels 3.1% 3.2% 3.9% 3.8% 3.0% 2.6% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0.8% 0.4% 0.4% 0.8% 0.8% FY'11 FY'12 FY'13 FY'14 FY'15 Net NPA Gross NPA 8

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10 Strengths 1 Widespread 2 Valuation 3 Strong 4 Strong 5 Organizational 6 Strengthening Geographical Reach Skills & Recovery/Collection Operation Balance Sheet Management Team Structure: Credit Risk Focus Presence and Expanding Reach 10

11 Geographical Reach & Proximity to the Customer Branch Locations Across India Pan-India Presence 741 Branch Offices & 776 Rural Centres Tie up with Appx. 500 Private Financiers 16,160 Employees including 9,658 Field Officers Regional Split of Branches States with STFC Presence As on March 31,

12 2 Valuation Skills & Recovery/Collection Operation: Leveraging on Relationships Valuation Skills: Considerable expertise in valuation of pre-owned trucks Valuation skills is critical to succeed in this space given that the amount of loan, EMI and a truck operator s ability to repay rests on the value of the truck Knowledge driven valuation model Vehicle Assessment 60%-70% Loan-to-Value Ratio Old CVs 75%-85% Loan to Value Ratio New CVs Recovery/Collection Operation: Due to underdeveloped banking habits of small truck operators, a large part of monthly collections is in the form of cash Compulsory monthly visits to borrowers by field officers help in managing large cash collections In-house Administered Loan Recovery Field Officers Vast Customer Base Continuous monitoring of disbursed loans Knowledge & Relationship based Recovery Procedure Experience in credit appraisal & recovery/collection operations has lead STFC to become one of the leading organized players in the sector 12

13 3 Healthy Asset Quality Prudent Credit Norms NPA Levels Substituted formal credit evaluation tools, such as IT returns and bank statements, with personal understanding of the customers proposed business model 4.5% 4.0% 3.86% 3.79% Client and truck-wise exposure limits 3.5% 3.06% 3.20% Reasons for Low Delinquency Asset backed lending with adequate cover Assets are easy to repossess with immediate liquidity 3.0% 2.5% 2.0% 2.64% Target segment generally operates on state highways and 1.5% short distances, ferrying essential commodities 1.0% 0.77% 0.83% 0.78% Incentive Schemes 0.5% 0.38% 0.44% Well-defined incentive plan for field officers to ensure low default rates 0.0% FY11 FY12 FY13 FY14 FY 15 Field officers are responsible for recovery of loans they Net NPA Gross NPA originate Around 80% coverage between Gross/Net NPA as on March,

14 3 Has Attracted Strong Interest from Quality Investors Consistent track record and high growth potential has attracted reputed institutional and private equity investors to infuse growth capital Last fund raising : Allotted mn equity shares at Rs per share to Qualified Institutional Buyers (QIB) for an aggregate sum of Rs bn resulting in a dilution of around 5.20% to 45 marquee global as well as domestic funds and insurers, which included 22 existing investors and the rest, new investors on January 28, 2010 Capital Adequacy ratio as of March 31, 2015 : 20.52% Key Shareholders* Current Shareholding (Mn Shares) % age Shriram Capital Piramal Enterprises Sanlam Life Insurance Centaura Investments Stiching Pension Fund Small Cap World Fund Ontario Teachers Government of Singapore Vanguard Emerging Market Stock Index Fund Abudhabi Investment Authority Merrill Lynch Capital Market Espana Public & Others Total *As on March 31, 2015 Large Investments by major Institutional and Private Equity Investors 14

15 3 Optimized Balance Sheet : Access to Low Cost Funds Borrowings Funding Mix as % of Overall Liabilities Strategic mix of retail deposits and institutional funding Average cost of funds declined over the years with increase in Bank/ Institutions liabilities Access to fixed rate long term loans of 3-5 years due to strong relationships with public, private sector, foreign banks and institutions 100% 80% 60% 78% 79% 82% 80% 80% Securitization 40% Securitization of loan book at regular intervals to fund new originations and maintain growth momentum. 20% Securitized assets portfolio stands at Rs bn at the end of FY15 Conservative recognition of income on account of amortization of securitization income over the tenor of the agreements 0% 22% 21% 18% 20% 20% FY'11 FY'12 FY'13 FY'14 FY'15 Retail Banks/Institutions Credit Ratings Long term rating: AA+ from CARE & AA from CRISIL Highest short term rating: A1+ from Fitch & A1+ from CRISIL 15

16 4 Strong Management Team Umesh Revenkar CEO & Managing Director Joined as an Executive Trainee in 1987 and looks after operations of the CV finance business Holds a degree in MBA Finance Vinay Kelkar Deputy Managing Director Over 32 years experience and 20 years of experience in finance industry Joined in 1995 and now heads the Compliance and Accounts function, a qualified Chartered Accountant & Cost Accountant Parag Sharma Executive Director & CFO Over 24 years experience in finance industry Joined in 1995 and now heads the Finance function, a qualified Cost Accountant S. Sunder Executive Director Accounts & Admn. Over 24 years experience in finance industry Joined in 1995 and now heads the Accounts and Administration function, a qualified Cost Accountant Sanjay K Mundra Senior Vice President Investor and Media Relations Over 21 years experience in the finance Industry Joined in 2007, a qualified Company Secretary 16

17 4 Board of Directors Subramanian Laksminarayanan Chairman Member of Indian Administrative Services (IAS retired) Served at senior positions in the Ministry of Home Affairs, Ministry of Communication & IT etc. Umesh Revenkar CEO & Managing Director Joined as an Executive Trainee in 1987 and looks after operations of the CV finance business Holds a degree in MBA Finance R Sridhar Director Over two decades of experience in financial services sector, especially in commercial vehicle financing Joined Shriram Group in 1985 and served as Managing Director from September, 2000 to March, 2012 Holds directorship in other Shriram Group companies Fellow member of the Institute of Chartered Accountants of India Amitabh Chaudhry Director Over two decades of experience in financial services, MBA from IIM Ahmedabad & B. Tech from BITS, Pilani Holds directorship in HDFC Standard Life Insurance Co. Ltd. & HDFC pension management Co. Ltd., Manipal Global education Pvt. Ltd & Credila Financial Servies Private Limited S. Sridhar Director Former Chairman & Managing Director of Central Bank of India, with nearly four decades of experience in commercial and development banking out of which 13 years were at the CEO/Board level. Currently, he serves as an Independent Director on the Boards of various companies, and also as a consultant to financial services companies. 17

18 4 Board of Directors (Contd.) Mrs Kishori Udeshi Director Holds degree in MA in Economics. First women Deputy Governor of RBI and also on the Board of SEBI, NABARD & EXIM Bank. Holds directorship in HSBC Asset Management (India) Pvt. Ltd., ION Exchange (India) Ltd., HALDYN Glass Ltd., Thomas Cook (India Ltd. And Elantas Beck India Ltd. Thomas Cook Insurance Services (India) Limited; and Shriram Automall India Limited etc. Puneet Bhatia Director MD of TPG Capital and country Head India for TPG s Asian Business Former Chief executive of the Private Equity Group for GE Capital India Holds a degree in Commerce and an MBA from IIM, Calcutta Sumatiprasad M Bafna Director Has extensive experience in the transportation business He currently serves on the board of directors of Bafna Aviation Pvt. Ltd., Bafna Motors (Mumbai) Pvt. Ltd., Isuta Electronics (India) Ltd, Bafna Motors (Ratnagiri) Pvt Ltd, Kishore Transport Services Pvt. Ltd. etc. Gerrit Lodewyk Van Heerde Director Chief Financial Officer of Sanlam Emerging Markets Has 22 years of experience in the financial services industry and has represented Sanlam at various other boards. 18

19 5 Organizational Structure: Credit Risk Focus National Product Heads Zonal Business Head Chief Operating Officer Clearly Demarcated Responsibilities Field Offices: Credit Admn Zonal Credit Head Regional Product Heads Regional Business Heads Regional Credit Risk Head Credit Cell Direct contact with customers for vehicle inspection & primary valuation, sales-lead generation, and collection & repossession in the case of default Branch Heads (741 Branches) : Credit Cell Branch Heads Credit Risk Head Deciding the credit worthiness of individuals and arranging the necessary documentation Each branch has ~15-20 employees, 8-10 field officers, 6-8 support staff Product Executives 19

20 6 Strengthening Presence and Expanding Reach Core Business Leverage the large pan-india network to enhance reach in North & East India, particularly in large CV hubs To increase market share in pre-owned CV market Expanding the Pre- Owned CV Segment Introduce top-up products such as finance for tyres, working capital and engine replacement Leveraging Private Financiers Build partnership with private financiers in the unorganized market to leverage their local knowledge to enhance market share Partnered with more than 500 private financiers as of March 31, 2015 Axis Bank cobranded credit cards Tied up with Axis Bank to distribute credit cards to small truck owners Distributed over 3,70,000 credit cards as of March 31,

21 6 Strengthening Presence and Expanding Reach (Contd.) Freight Bill Discounting Estimated market size of Rs bn with higher yields than the existing CV financing business. Passenger Commercial Vehicle Financing Estimated market size of Rs. 260 bn for FY15 backed by growth in population and an improving road infrastructure Tractor Financing Market experiencing growth with increasing policy thrust on agricultural mechanization. The used tractor financing market is estimated at Rs. 310 bn in FY15 Construction Equipment Financing Market expected to reach over Rs. 400 bn in 2015 driven by huge infrastructure spending during the 11 th 5-Year Plan estimated at approximately Rs. 20 tn This business would be through our 100% subsidiary Shriram Equipment Finance Company Ltd under an independent management which would focus on end-to-end equipment financing Automall Platform to facilitate buyers and sellers to meet for sale of pre-owned CVs, where Shriram Automall, 100% subsidiary can earn commission fees through its advisory services and STFC will provide financing to the buyer Shriram Automall is creating a market for pre-owned trucks in organised and transparent manner and planning to create such automall 21

22 6 Target to reach AUM over Rs 750 bn by FY16 STFCL Increase Reach & Branding New Innovative Products and Tieups Multiply Consolidated AUM over Rs 750 bn by 2016 Well Planed Strategy for Future Growth 22

23 6 Building Trust and Strengthening Relationship: AutoMalls Over 0.6 mn Customer Base Unparalleled physical auction model in the country. Opportunity for Sellers and Financial institutions to sell assets and realize the best value with bidding by 300 and more bidders in every auction. 50 Automalls in operation. Over 0.25 mn assets sold. Automalls in addition would be offering host of services like valuation, parking, financing etc. Touch Screen Kiosks Touch Screen Kiosks are Virtual Truck Bazaars-Buy & Sell as per convenience. Facilitates Buyer and Sellers to purchase and sell vehicles at the Right price. Kiosks available in 500 branches across the length and breadth of the country. Over 0.25 mn transactions executed. These initiatives would help STFC gain the Trust of those associated with thetransport and Equipment Industry 23

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25 Standalone Performance Review Q4 FY 14 Vs. Q4 FY 15 Rs 23,123.2 mn Rs 3,167.3 mn Rs 10,853.6 mn Rs % 7.4% 17.9% 7.4% Rs 20,068.4 mn Rs 2,949.6 mn Rs 9,205.2 mn Rs Total Income PAT Net Interest Income* EPS " Stable asset quality with Gross NPAs and the Net NPA at 3.79% & 0.78% respectively and the Net NPA in absolute amount stands at Rs. 3,791.2 mn (Coverage ratio maintained around 80%) " Employee strength decreased by 1,962 taking the total strength to 16,160 from 18,122 including 9,658 field executives. *including Securitisation Income 25

26 Consolidated Performance Review Q4 FY 14 Vs. Q4 FY 15 Rs 24,211.3 mn Rs mn Rs 11,055.7 mn Rs % 73.3% 13.3% 73.3% Rs 21,500.4 mn Rs 3,148.9 mn Rs 9,759.5 mn Rs Total Income PAT Net Interest Income* EPS Rs bn Rs 98.8 bn 30.9% 40.6% Rs bn On Books Assets Rs bn Off Books Assets *including Securitisation Income 26

27 Driven by Growing Assets On Balance sheet assets Rs mn " 34.9% growth in On Balance sheet assets to Rs bn Off Balance sheet assets Rs mn " Off Balance sheet assets stands at Rs 98.8 bn 27

28 Driven by Growing Assets Used CVs assets Rs mn " 15.4% growth in Used CVs to Rs bn New CVs assets Rs mn " New CVs stands at Rs 46.8 bn 28

29 Driven by Growing Assets AUM BREAK-UP M&LCVs 27.0% Passenger Vehicles 22.4% HCVs 42.3% Others 2.8% Tractors 5.5% 29

30 Supported by a Healthy Borrowing Profile Borrowing Profile Q4 FY 14 Rs bn Q4 FY 15 Rs bn 19.5% 19.6% 80.5% 80.4% Retail Banks/Institutional Retail Banks/Institutional 30

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32 Exponential Growth in CV Financing CV Financing market size of Rs 1,900 bn Shriram targets the largest market segment of pre-owned, accounting for 43% of the total market volume Market for second hand truck financing is under penetrated with 65-70% of the market with private financiers who charge high interest rates Sustained Growth Expected to Continue Modernization of trucking industry Legislative pressure on banning trucks beyond 15 years is likely to trigger replacement boom Transport associations introduction of Voluntary Retirement Scheme for old trucks with better financing options Financing amount of Rs 1,078 bn to be triggered through replacement demand for 1.35 mn new as well as pre-owned trucks Market Potential 12+ Yrs Rs 180 bn 0-4 Yrs Rs 870 bn 5-12 Yrs Rs 850 bn Shriram Target Segment Truck Profile (7.5 mn) Ø 12 Yrs 18% 0-4 Yrs 39% 5-12 Yrs 43% Stricter emission norms expected to generate huge demand for 5-12 year old trucks Growing freight capacity GDP growth rate driving incremental freight capacity which is estimated to increase at 1.25 times of GDP growth. Only Organised Player in the Pre-owned CV Financing Market 32

33 Transport Logistic Model to Stay hub & spoke Transport Industry maturing with the years. Distribution solution providers changing the dimension of Transportation. Rural and Semi Urban markets seeing higher growth rates across all products. Better Road network seeing light of the day. Competition and Emission standards driving manufacturer s to launch Latest Technology International standard vehicles. Last mile Transport pushing demand for Cargo LCV s. STFC will benefit from Exponential growth in the vehicles required for Last Mile Transport-SRTO 33

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35 Shareholding Structure as on March 31, 2015 No. of shares outstanding: mn FII 51.2% MF/ Banks 4.2% Public 6.2% Other Corporate Bodies 12.1% Promoter & Promoter Group 26.1% NRI/ OCBs 0.2% 35

36 Profit and Loss Statement (Rs in mn) Profit & Loss Statement Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % Interest Income 16, , , , , % 4.02% 62, , % Interest expended 10, , , , , % 4.72% 38, , % Net Interest Income 6, , , , , % 3.17% 23, , % Income from Securi@sa@on 2, , , , , % 3.96% 13, , % Less : Securi@sa@on expenses % 35.82% % Income from Securi@sa@on (Net) 2, , , , , % 2.62% 12, , % Net Interest Income incl. SecurCsaCon Gain 9, , , , , % 3.10% 36, , % Other fee based income % % % OperaCng Income 9, , , , , % 3.09% 36, , % Opera@ng expenditure 2, , , , , % 10.71% 9, , % Core OperaCng Profit 6, , , , , % 0.46% 27, , % Other Income % 9.40% 1, % OperaCng Profit 6, , , , , % 0.62% 28, , % Provisions for Bad Debts 2, , , , , % 2.56% 10, , % Provisions against Standard Assets (35.4) % % % PBT 4, , , , , % 1.65% 18, , % Tax 1, , , , , % 2.22% 5, , % PAT 2, , , , , % 1.37% 12, , % EPS (Rs) % 1.38% % Tier I CRAR % 17.69% 17.46% 17.09% 16.49% 16.40% % % 17.69% 16.40% % Tier II CRAR % 5.68% 5.43% 4.87% 4.58% 4.12% % % 5.68% 4.12% % Total CRAR % 23.37% 22.89% 21.96% 21.07% 20.52% % % 23.37% 20.52% % Book Value (Rs) % 1.75% % Key RaCos (%) Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % Return on Avg. Net Worth 14.43% 14.55% 13.85% 13.91% 13.83% % % 16.20% 14.03% % Return on Avg. Assets 2.38% 2.46% 2.31% 2.22% 2.17% % % 2.64% 2.28% % Interest Coverage Ra@o % % % NIM on AUM 6.46% 6.54% 6.60% 6.64% 6.67% 3.25% 0.45% 6.68% 6.61% % 36

37 Balance Sheet (Rs in mn) Balance Sheet Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % LiabiliCes Shareholder funds (a) Share capital 2, , , , , % 0.00% 2, , % (b) Reserves and surplus 80, , , , , % 1.73% 80, , % Non- current liabili4es (a) Long- term borrowings 2,27, ,25, ,71, ,96, ,15, % 6.61% 2,27, ,15, % (b) Other Long term liabili@es 9, , , , , % 22.89% 9, , % (c) Long term provisions 12, , , , , % 5.84% 12, , % Current liabili4es (a) Short- term borrowings 29, , , , , % % 29, , % (b) Trade payables 4, , , , , % 16.37% 4, , % (c) Other current liabili@es 1,22, ,19, ,12, ,04, ,17, % 12.53% 1,22, ,17, % (d) Short- term provisions 2, , , , , % 59.99% 2, , % Total 4,92, ,99, ,41, ,81, ,93, % 1.94% 4,92, ,93, % Assets Non- current assets (a) Fixed assets (i) Tangible assets , % 1.99% % (ii) Intangible assets % % % (b) Non- current investments 6, , , , , % 7.48% 6, , % (c) Deferred tax assets (net) 2, , , , , % % 2, , % (d) Long term loans and advances 2,21, ,46, ,70, ,01, ,08, % 2.16% 2,21, ,08, % (e) Other non- current assets % % % Current assets (a) Current investments 20, , , , , % 98.15% 20, , % (b) Cash and bank balances 70, , , , , % % 70, , % (c) Short- term loans and advances 1,67, ,77, ,86, ,00, ,99, % % 1,67, ,99, % (d) Other current assets % % % Total 4,92, ,99, ,41, ,81, ,93, % 1.94% 4,92, ,93, % 37

38 Details of Key Parameters (Profit & Loss Account) Q4 Q1 Q2 Q3 Q4 % % Year ended Year ended % ParCculars FY FY FY FY FY YoY QoQ FY 2014 FY 2015 YoY Interest Income mn 16, , , , , % 4.02% 62, , % SecuriCsaCon Income mn 2, , , , , % 2.62% 12, , % Total Interest Income mn 19, , , , , % 3.94% 75, , % Less : Interest Expenses mn 10, , , , , % 4.72% 38, , % Net Interest Income mn 9, , , , , % 3.10% 36, , % Other Income mn % 8.99% 1, % OperaCng Income mn 9, , , , , % 3.18% 38, , % Profit a]er Tax mn 2, , , , , % 1.37% 12, , % Cost to Income RaCo % % 6.79% % EPS Rs % 1.38% % ROA % 2.38% 2.46% 2.31% 2.22% 2.17% % % 2.64% 2.28% % ROE % 14.43% 14.55% 13.85% 13.91% 13.83% % % 16.20% 14.03% % NIM (on AUM) % 6.46% 6.54% 6.60% 6.64% 6.67% 3.25% 0.45% 6.68% 6.61% % 38

39 Details of Key Parameters (Balance Sheet) Q4 Q1 Q2 Q3 Q4 % % Year ended Year ended % ParCculars FY FY FY FY FY YoY QoQ FY 2014 FY 2015 YoY Asset under Management - On Books mn 3,64, ,05, ,41, ,90, ,92, % 0.45% 3,64, ,92, % - Off Books mn 1,66, ,38, ,14, , , % 22.34% 1,66, , % Total AUM mn 5,31, ,43, ,55, ,70, ,91, % 3.55% 5,31, ,91, % SecuriCsaCon done mn 42,722 1,702 5,268-37, % 0.00% 1,06,796 44, % Gross NPA % 3.86% 3.74% 3.74% 3.59% 3.79% % 5.57% 3.86% 3.79% % Net NPA % 0.83% 0.78% 0.80% 0.74% 0.78% % 5.41% 0.83% 0.78% % Gross NPA mn 14, , , , , % 6.43% 14, , % Net NPA mn 3, , , , , % 6.46% 3, , % Coverage RaCo % 79.12% 79.73% 79.15% 79.99% 79.98% 1.10% % 79.12% 79.98% 1.10% CRAR % 23.37% 22.89% 21.96% 21.07% 20.56% % % 23.37% 20.56% % Book Value Rs % 1.75% % 39

40 Subsidiary Information 1. Shriram Equipment Finance Company Limited. Assets under Finance - Rs. 29,985.8 mn in Q4 FY 15 (Rs. 34,183.9 mn in Q4 FY 14) PAT Rs. (2,371.3) mn in Q4 FY 15 (Rs mn in Q4 FY 14) 2. Shriram Automall India Limited. - ONE STOP - Launched in more than 500 branches. - AUTOMALL 50 Automall in operation. 3. Fees Income earned Rs mn in Q4 FY 15 (Rs mn in Q4 FY 14) 40

41 Subsidiary - Shriram Equipment Finance Company Limited Profit and Loss Statement Profit & Loss Statement Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % Interest Income 1, , , , % % 5, , % Interest expended % % 2, , % Net Interest Income % % 2, , % OperaCng Income % % 2, , % Opera@ng expenditure % 17.48% % Core OperaCng Profit (14.4) % % 1, , % Other Income % % % OperaCng Profit (6.4) % % 1, , % Provisions for Bad Debts , % % , % Provisions against Standard Assets (1.3) (1.4) (0.8) (3.3) (16.0) % % 9.8 (21.5) % PBT (2,347.9) % % 1,313.5 (2,046.2) % Tax % % % PAT (2,371.3) % % (2,172.2) % EPS (Rs) % % % Tier I CRAR % 14.21% 14.54% 14.82% 15.69% 9.93% % % 14.21% 9.93% % Tier II CRAR % 5.61% 5.68% 5.87% 6.11% 5.20% % % 5.61% 5.20% % Total CRAR % 19.82% 20.22% 20.69% 21.80% 15.12% % % 19.82% 15.12% % Book Value (Rs) % % % Key RaCos (%) Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % Return on Avg. Net Worth 13.71% 4.34% 5.92% 5.70% % % % 19.34% % % Return on Avg. Assets 1.88% 0.62% 0.83% 0.82% % % % 2.59% % % Interest Coverage Ra@o % % % 41

42 Subsidiary - Shriram Equipment Finance Company Limited Balance Sheet (Rs in mn) Balance Sheet Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 YoY % QoQ % FY'14 FY'15 YoY % I. EQUITY AND LIABILITIES (1) Shareholders' funds (a) Share capital 2, , , , , % 0.00% 2, , % (b) Reserves and surplus 2, , , , % % 2, % (2) Non- Current LiabiliCes (a) Long- term borrowings 13, , , , , % % 13, , % (b) Other long term liabili@es % 0.00% % (c) Long term provisions , % % , % (3) Current LiabiliCes (a) Short- term borrowings 4, , , , , % % 4, , % (b) Trade payables % 27.81% % (c) Other current liabili@es 10, , , , , % % 10, , % (d) Short- term provisions % % % Total 34, , , , , % % 34, , % II. ASSETS (1) Non- current assets (a) Fixed assets (I) Tangible assets % % % (ii) Intangible assets % % % (b) Deferred tax assets (net) % % % (c) Long term loans and advances 18, , , , , % 1.06% 18, , % (2) Current assets (a) Cash and bank balances , % % % (b) Short- term loans and advances 16, , , , , % % 16, , % Total 34, , , , , % % 34, , % 42

43 Subsidiary - Shriram Equipment Finance Company Limited Details of Key Parameters (Profit & Loss Account) Q4 Q1 Q2 Q3 Q4 % % Year ended Year ended % ParCculars FY FY FY FY FY YoY QoQ FY 2014 FY 2015 YoY Interest Income mn 1, , % % % Less : Interest Expenses mn % % % Net Interest Income mn % % % Other Income mn % % % OperaCng Income mn % % % Profit a]er Tax mn , % % % Cost to Income RaCo % % % % EPS Rs % % (217.23) % ROA % (29.61) % % 2.59 (6.32) % ROE % (242.88) % % (46.08) % 43

44 Subsidiary - Shriram Equipment Finance Company Limited Details of Key Parameters (Balance Sheet) Q4 Q1 Q2 Q3 Q4 % % Year ended Year ended % ParCculars FY FY FY FY FY YoY QoQ FY 2014 FY 2015 YoY Asset under Management mn 34, , , % % , % Gross NPA % % % % Net NPA % % % % Gross NPA mn , % % , % Net NPA mn , % % , % Coverage RaCo % % 1.47% % CRAR % % % % Book Value Rs % % % 44

45 Subsidiary - Shriram Automall India Limited Profit and Loss Statement Particulars Q4 Q1 Q2 Q3 Q4 (Rs. in Mn) FY 14 FY 15 FY 15 FY 15 FY 15 FY 14 FY 15 Income Revenue from operations Other income Total Expenditure Employees Benefit expense Finance cost Depreciation and amortisation Other expenses Total Profit/(Loss) before taxation Provision for taxation Current tax Less: MAT credit entitlement Deferred tax liability / (Asset) (0.52) (3.45) (5.25) (0.71) Total tax expense / (income) Profit/(Loss) after tax from continuing operations Earnings/(Loss) per share Basic & Diluted (Rs.) Nominal Value of Share (Rs.)

46 Subsidiary - Shriram Automall India Limited Balance Sheet Particulars (Rs in mn) Q4 Q1 Q2 Q3 Q4 FY 14 FY 15 FY 15 FY 15 FY 15 FY 14 FY 15 I. EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share capital (b) Reserves and Surplus (2) Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions Total II. ASSETS (1) Non-current assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (b) Deferred tax assets (c) Long term loans and advances (2) Current assets (a) Trade receivables (b) Cash and bank balances (c) Short-term loans and advances (d) Other assets Total

47 About Shriram Transport Finance Co. Ltd. Shriram Transport Finance Co Ltd. is the largest asset financing NBFC with Assets on Balance sheet of Rs. 49, crores and off Balance sheet assets of Rs. 9, crores. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-12 year old trucks. It has a pan-india presence with a network of 741 branches, and employs 16,160 employees including 9,658 field officers. The company has built a strong customer base of approx mn. Over the past 35 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned trucks and collection. It has a vertically integrated business model and offers a number of products which include: Pre-owned CV financing, New CV financing and other loans like accidental repair loans, tyre loans and working capital finance, etc. For more information please visit Forward Looking Statement 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.

48 Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Transport Finance Co. Ltd Tel. No

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